PROFITPINCHED LAW FIRMS THAT HAVE TRADITIONALLY DEFENDED BUSINESSES AND INSURERS ARE NOW OFFERING THEIR SERVICES TO PERSONALINJURY PLAINTIFFS AS WELL THE PRACTICE OF WORKING BOTH SIDES OF THE STREET IS EARNING THE FIRMS MULTIMILLION DOLLAR PROFITS IN SOME CASES BUT IT'S ALSO CREATING POTENTIAL CONFLICTS WITH CORPORATE CLIENTS ALTERING LAW FIRMS' CULTURES AND COMPLICATING FORMULAS FOR COMPENSATING PARTNERS ALL THESE ISSUES BOILED OVER LAST MONTH AT BETTS PATTERSON & MINES A 46LAWYER CORPORATE AND INSURANCEDEFENSE FIRM IN SEATTLE THAT BEGAN PURSUING SHAREHOLDER COMPLAINTS IN 1985 THE FIRM'S SHIFT TO PLAINTIFFS' WORK YIELDED SEVERAL HUGE VERDICTS IN SHAREHOLDER CASES AGAINST SOME OF THE NORTHWEST'S BIGGEST COMPANIES BUT IT ALSO CREATED A MAJOR RIFT AS ONE FACTION OF BETTS PATTERSON PROMOTED THE FIRM'S NEW IMAGE FOR AGGRESSIVE PLAINTIFFS' WORK ANOTHER RECOILED AT THE PROSPECT OF ANTAGONIZING SEATTLE'S CORPORATE COMMUNITY AND THE FIRM'S TRADITIONAL CLIENTELE THE UPSHOT WAS A NASTY DISPUTE LAST MONTH OVER WHETHER TO REPRESENT PLAINTIFFS WHO CLAIMED THEY'D BECOME ILL FROM ALLEGEDLY CONTAMINATED HAMBURGERS AT A JACK IN THE BOX RESTAURANT ULTIMATELY 12 LAWYERS INCLUDING THE HEAD OF BETTS PATTERSON'S PLAINTIFFS' CLASSACTION DEPARTMENT BOLTED TO FORM A SEPARATE FIRM SAYS JAMES NELSON PRESIDENT OF BETTS PATTERSON IT JUST WASN'T FUN ANY MORE WHAT TRANSPIRED AT BETTS PATTERSON REFLECTS THE TENSIONS AND CONFLICTS LOOMING OVER NUMEROUS BUSINESS AND INSURANCEDEFENSE FIRMS THAT LIKE BETTS PATTERSON BEGAN TAKING ON PLAINTIFFS' WORK IN THE LATE 1980S THE REASON IRONICALLY WAS THAT INSURANCE CARRIERS WITH HUGE VOLUMES OF LITIGATION BECAME MORE ADEPT AT PICKING LAW FIRMS CONTROLLING COSTS AND DICTATING HOURLY BILLING RATES THAT CUTS SHARPLY INTO DEFENSEFIRM PROFITS IN EFFECT PUSHING SOME OF THE FIRMS INTO THE ENEMY CAMP IT'S NOT NEW THAT INSURANCEDEFENSE WORK HAS HAD A LOT OF THE PROFIT SQUEEZED OUT OF IT SAYS LAW FIRM CONSULTANT BRUCE HEINZ IN BOSTON IT'S ALSO NOT NEW THAT PEOPLE WHO ARE GOOD AT INSURANCEDEFENSE ALSO WOULD BE GOOD AT PLAINTIFFS' WORK WHAT'S NEW IS THAT MORE AND MORE LAW FIRMS ARE DOING IT WHAT I'M SEEING HE ADDS IS LAW FIRMS TAKING IT ON KIND OF GINGERLY VIRTUALLY ALL INSURANCEDEFENSE FIRMS DO SOME PLAINTIFFS' WORK IT'S A MATTER OF DEGREE SAYS PAUL DEVIN A LAWYER AT PEABODY & ARNOLD AN INSURANCEDEFENSE FIRM IN BOSTON THOSE OF US WHO CAN'T MAKE A PROFIT IN INSURANCEDEFENSE WILL LOOK TO OTHER WAYS PEABODY & ARNOLD HE SAYS DOES ONLY LIMITED PLAINTIFF WORK BUT OTHER FIRMS HAVE JUMPED IN MUCH MORE AGGRESSIVELY BETTS PATTERSON WAS ONE EXAMPLE IT GOT ITS FIRST TASTE OF PLAINTIFFS' WORK WHEN IT SERVED AS LOCAL COUNSEL IN A SUCCESSFUL BONDHOLDER SUIT AGAINST THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM OR WPPSS IN THE MID1980S THE WPPSS CASE THE BIGGEST MUNICIPALBOND DEFAULT IN HISTORY WHETTED BETTS PATTERSON'S APPETITE FOR CLASSACTION SECURITIES LITIGATION TO PURSUE SUCH WORK THE FIRM THREE YEARS AGO HIRED STEVE BERMAN AN AGGRESSIVE LITIGATOR WITH A UNIVERSITY OF CHICAGO LAW DEGREE WHO HAD BEEN INVOLVED IN THE WPPSS CASE WITH ANOTHER FIRM WITHIN THREE YEARS MR BERMAN 37 YEARS OLD FILED MORE THAN 25 SHAREHOLDER SUITS IN THE SEATTLE AREA COLLECTING HANDSOME SETTLEMENTS FROM SUCH COMPANIES AS MICROSOFT CORP 15 MILLION NORDSTROM INC THE SEATTLEBASED RETAILER 75 MILLION AND SEAFIRST BANK 136 MILLION SEATTLE'S CORPORATE COMMUNITY BEGAN GRIPING IN LOCAL NEWS ACCOUNTS THAT IF BUSINESS TURNED BAD THE FIRST PHONE CALL WOULD LIKELY COME FROM A NEWS REPORTER THE SECOND FROM AN ATTORNEY AT BETTS PATTERSON ANNOUNCING A SHAREHOLDER SUIT HOWEVER TENSIONS BEGAN MOUNTING AT BETTS PATTERSON AS MR BERMAN BEGAN PURSUING SHAREHOLDER CLAIMS AGAINST COMPANIES WITHIN INDUSTRIES WHERE THE FIRM HAD CLIENTS SUCH AS BIOTECHNOLOGY OR WAS TRYING TO DEVELOP NEW CLIENTS COMPLICATING THINGS ACCORDING TO MR BERMAN WAS THE ISSUE OF COMPENSATION ONE YEAR MR BERMAN'S LITIGATION GROUP PRODUCED 20 OF BETTS PATTERSON'S REVENUE CREATING THE ENTIRE BONUS POOL FOR THE FIRM'S 23 PARTNERS HE SAYS NEVERTHELESS ANGRY EMAIL MESSAGES POPPED UP ON OFFICE COMPUTER SCREENS AS PARTNERS WHO TOILED AWAY AT HOURLY RATES FOR DEFENDANTS FEUDED OVER PAY WITH THE FLASHIER LAWYERS WHO REPRESENTED PLAINTIFFS FOR A PERCENTAGE OF THE DAMAGES THEY WON MATTERS CAME TO A HEAD WHEN MR BERMAN SOUGHT AUTHORIZATION TO PURSUE CLASSACTION PERSONALINJURY CLAIMS AGAINST COMPANIES INCLUDING ONE CASE AGAINST GENERAL MOTORS CORP INVOLVING GASTANK EXPLOSIONS ONE OF BETTS PATTERSON'S PRIZED CLIENTS IT TURNED OUT IS CHRYSLER CORP WHICH LIKE ANY AUTO MAKER IS A FREQUENT TARGET OF PRODUCTDEFECT SUITS AND SOME PARTNERS FELT THE PLAINTIFFS' WORK WOULD SEEM DISLOYAL MORE RECENTLY MR BERMAN WANTED TO FILE A CLASSACTION SUIT ON BEHALF OF WASHINGTON RESIDENTS SICKENED IN JANUARY BY THE OUTBREAK OF BACTERIA LINKED TO HAMBURGERS AT A JACK IN THE BOX RESTAURANT BETTS PATTERSON REPRESENTS THE INSURER FOR THE RESTAURANT CHAIN'S DISTRIBUTOR VONS COS ACCORDING TO MR BERMAN AND IS ANGLING FOR A PIECE OF THE DEFENSE PIE IF VONS IS SUED IF THE FIRM HANDLED THE PLAINTIFFS' SIDE IT COULDN'T ALSO DO VONS'S DEFENSE WORK IN THE SAME CASE AND MIGHT BE CONFLICTED OUT OF OTHER WORK AS WELL BETTS PATTERSON'S MR NELSON MAINTAINS THAT THE FIRM'S DECISION NOT TO SUE JACK IN THE BOX WAS MORE FUNDAMENTAL CLASSACTION PERSONALINJURY CLAIMS ARE NOVEL IN WASHINGTON TO PURSUE ONE SUCCESSFULLY MR NELSON SAYS WOULD BE ANATHEMA TO MANY OF OUR LONGESTSTANDING CLIENTS MR BERMAN TOOK THAT CASE AND SEVERAL OTHERS TO HIS NEW FIRM HAGENS & BERMAN HE ALSO TOOK HIS ENTIRE DEPARTMENT BETTS PATTERSON'S TOP ENVIRONMENTAL DEFENSE ATTORNEY SIX PARALEGALS AND EVEN SEVERAL OF BETTS PATTERSON'S ENVIRONMENTAL INSURANCECOMPANY CLIENTS BOTH SIDES DESCRIBE THE SPLIT AS AMICABLE THROUGHOUT THE COUNTRY MANY OTHER LAW FIRMS ARE TRYING TO BALANCE PLAINTIFFS' AND DEFENSE WORK WITHOUT GOING THE WAY OF BETTS PATTERSON ONE FIRM THAT HAS DEVELOPED A STRATEGY FOR AVOIDING SUCH CONFLICTS ALSO HAPPENS TO BE BASED IN SEATTLE THE CITY'S THIRDLARGEST LAW FIRM DAVIS WRIGHT & TREMAIN IS BUILDING AN INVENTORY OF PLAINTIFFS' CASES THAT IT HOPES WILL BRING IN 10 OF THE FIRM'S TOTAL REVENUE AT THE SAME TIME DAVIS WRIGHT REPRESENTS MAJOR CORPORATE BUSINESS AND INSURANCE COMPANY CLIENTS THAT TYPICALLY WIND UP AS DEFENDANTS IN SUCH CASES KEEPING THE TWO PRACTICES APART GEOGRAPHICALLY HELPS LIMIT THE CONFLICTS SAYS MARK HUTCHESON MANAGING PARTNER OF THE 287LAWYER FIRM MOST OF THE FIRM'S INSURANCEDEFENSE WORK IS HANDLED IN THE FIRM'S PORTLAND ORE OFFICE WHILE MOST OF ITS BIG PLAINTIFFS' CASES ARE IN ANCHORAGE ALASKA INCLUDING A MULTIBILLION DOLLAR CLASSACTION SUIT AGAINST EXXON CORP STEMMING FROM THE 1989 VALDEZ OIL SPILL IN PRINCE WILLIAM SOUND IN SEATTLE THE FIRM MAINTAINS ITS CORPORATE PRACTICE WITH MANY FINANCIAL INSTITUTIONS AS CLIENTS ADDITIONALLY SAYS MR HUTCHESON IN SOME INSTANCES THE FIRM FORGOES HANDLING PLAINTIFFS' CLAIMS INVOLVING AN INDUSTRY IN WHICH THE FIRM HAS VALUED CLIENTS DAVIS WRIGHT FOR EXAMPLE DECLINES ALL LIBEL OR DEFAMATION CASES BECAUSE IT REPRESENTS THE SEATTLE TIMES AND THE CABLE NEWS NETWORK THE PROBLEM WITH HANDLING BOTH LIBEL PLAINTIFFS' AND DEFENSE WORK IS THAT YOU PUT YOURSELF IN THE POSITION OF MAKING BAD LAW FOR A SIGNIFICANT PORTION OF YOUR CLIENT BASE SAYS MR HUTCHESON PUBLIC HIGH SCHOOLS CAN REQUIRE STUDENTS TO PERFORM COMMUNITY SERVICE TO GRADUATE A FEDERAL APPEALS COURT SAID REJECTING ARGUMENTS THAT THE REQUIREMENT AMOUNTED TO INVOLUNTARY SERVITUDE RULING ON A CASE INVOLVING THE BETHLEHEM PA SCHOOL DISTRICT THE COURT ALSO SAID THE REQUIREMENT DIDN'T VIOLATE STUDENTS' FREESPEECH RIGHTS THE TWO STUDENTS WHO SUED CLAIMED THAT MANDATORY COMMUNITY SERVICE FORCED THEM TO AFFIRM THE PHILOSOPHY THAT SERVING OTHERS AND HELPING THE COMMUNITY ARE WHAT LIFE IS ALL ABOUT THE RULING BY THE US APPEALS COURT IN PHILADELPHIA IS APPARENTLY THE FIRST FEDERAL APPELLATE DECISION ON SCHOOLS' MANDATORY COMMUNITY SERVICE PROGRAMS WHICH HAVE GROWN IN POPULARITY IN RECENT YEARS LAST YEAR THE MARYLAND LEGISLATURE ADOPTED SUCH A PROGRAM TO TAKE EFFECT STATEWIDE IN THE FALL GOVERNMENTS MAY REQUIRE INDIVIDUALS TO PERFORM CERTAIN WELLESTABLISHED CIVIC DUTIES' SUCH AS MILITARY SERVICE AND JURY DUTY AS WELL AS PRO BONO WORK BY LAWYERS THE THIRD US CIRCUIT COURT OF APPEALS SAID THE COMMUNITY SERVICE PROGRAM IS PRIMARILY DESIGNED FOR THE STUDENTS' OWN BENEFIT AND EDUCATION NOTWITHSTANDING SOME INCIDENTAL BENEFIT TO THE RECIPIENTS OF THE SERVICES THE THREEJUDGE PANEL NOTED THAT THE BETHLEHEM STUDENTS ARE ALLOWED TO CHOOSE WHERE THEY WILL PERFORM THEIR 60 HOURS OF SERVICE AND CAN EVEN COME UP WITH THEIR OWN COMMUNITYSERVICE PROJECT THE COURT SAID THAT IF STUDENTS HAD TO WORK IN PROGRAMS THAT WERE IN CONFLICT WITH THEIR BELIEFS THE REQUIREMENT COULD RAISE FREESPEECH CONCERNS ERIC R STRAUSS AN ALLENTOWN ATTORNEY FOR THE TWO STUDENTS WHO SUED THE SCHOOL DISTRICT SAID HIS CLIENTS DON'T OPPOSE VOLUNTEER COMMUNITY SERVICE THESE AREN'T PEOPLE WHO ARE SAYING WE DON'T WANT TO HELP ANYONE THAT'S NOT IT AT ALL IT'S OVER THE QUESTION OF WHETHER THE GOVERNMENT CAN FORCE YOU TO DO THAT MR STRAUSS SAID HE SAID A DECISION HASN'T YET BEEN MADE ON WHETHER TO APPEAL THE MATTER FURTHER BALTIMORE ATTORNEY THOMAS A BOWDEN OF THE ASSOCIATION FOR OBJECTIVE LAW WHICH FILED A BRIEF SUPPORTING THE STUDENTS SAID HE EXPECTS COURT CHALLENGES TO BE FILED IN OTHER PARTS OF THE COUNTRY AS WELL AS SUCH PROGRAMS BECOME MORE COMMON WHO'S NEWS PETER D ROSS SENIOR LEGAL ADVISER TO COMMISSIONER SHERRIE P MARSHALL OF THE FEDERAL COMMUNICATIONS COMMISSION WILL JOIN WASHINGTON LAW FIRM WILEY REIN & FIELDING NEXT MONTH AS A PARTNER WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9303170039 930317 YOUR MONEY MATTERS FOR INVESTING IN SMALL STOCKS NO SINGLE INDEX WILL DO BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL THE POWERFUL RALLY IN SMALL STOCKS HAS ALREADY RECOVERED MOST OF THE GROUND LOST LAST MONTH AND MANY WALL STREET STRATEGISTS ARE CONFIDENTLY PREDICTING THAT THE TOP IS NOWHERE IN SIGHT FOR PEOPLE ANXIOUS TO JUMP ON THE BANDWAGON A GOOD BET IN THEORY WOULD BE AN INDEX INVESTMENT THAT'S SPECIFICALLY DESIGNED TO TRACK THE PERFORMANCE OF SMALL STOCKS AFTER ALL INDEX INVESTMENTS WHICH ARE DESIGNED SIMPLY TO TRACK THE PERFORMANCE OF A CERTAIN INDEX TEND OVER TIME TO OUTPERFORM MOST PROFESSIONALS WHO TRY TO PICK ONLY THE BEST STOCKS FROM THE UNIVERSE OF STOCKS IN THE INDEX BUT WHICH INDEX DO YOU USE UNLIKE WITH THE STANDARD & POOR'S 500STOCK INDEX WHICH STANDS OUT AS THE BENCHMARK OF CHOICE FOR LARGESTOCK INDEX INVESTORS NO SINGLE INDEX SERVES AS THE STANDARD FOR THE SMALLSTOCK SECTOR THERE ARE ROUGHLY A DOZEN INDEXES IN USE THAT ARE COMMONLY SEEN AS SMALL CAP FIGURES CLAUDIA MOTT DIRECTOR OF SMALLCAPITALIZATION RESEARCH AT PRUDENTIAL SECURITIES INC FAR FROM BEING INTERCHANGEABLE THE VARIOUS INDEXES REPRESENT VERY DIFFERENT PORTFOLIOS OF STOCKS AND CAN SHOW VERY UNEQUAL RESULTS OVER TIME A SAMPLING OF A FEW OF THE BETTERKNOWN INDEXES FOR SMALL STOCKS SHOWS THE GAPS CAN BE SUBSTANTIAL IN THE SMALLSTOCK RALLY OF THE PAST TWO YEARS THE NASDAQ COMPOSITE INDEX PRODUCED A TOTAL RETURN PRICE CHANGE PLUS DIVIDENDS OF 81 WHILE THE IBBOTSON SMALL COMPANY INDEX GAINED 78 AND THE RUSSELL 2000 73 RETURNS ON THE WILSHIRE 4500 WERE JUST ABOVE 60ONLY A HAIR BETTER THAN THE 60 GAIN OF THE AVERAGE SMALLCOMPANY MUTUAL FUND ACCORDING TO MORNINGSTAR INC NO ONE SMALLSTOCK INDEX IS THE RIGHT' ONE SAYS JOHN FREEMAN PORTFOLIO MANAGER AT MARTINGALE ASSET MANAGEMENT THEY ALL MAY LOOK SOMEWHAT ALIKE BUT THERE ARE LEGITIMATE DIFFERENCES TAKE INDUSTRY WEIGHTINGS ALL SMALL INDEXES TEND TO BE HEAVILY WEIGHTED TOWARD FINANCIAL AND CONSUMERSERVICE STOCKS AND VERY LIGHTLY WEIGHTED IN ENERGY STOCKS BUT EACH INDEX HAS ITS OWN PECULIARITIES AN EXTREME CASE IS THE WILSHIRE SMALL COMPANY VALUE INDEX WHICH HAS A 62 WEIGHTING IN JUST TWO KINDS OF STOCKS UTILITIES AND FINANCIAL COMPANIES WHETHER INVESTORS KNOW IT OR NOT THESE INDUSTRY STAKES TRANSLATE INTO SUBSTANTIAL ECONOMIC BETS ON FOR INSTANCE INTEREST RATES OIL PRICES OR CONSUMER SPENDING A PARTICULAR INDEX'S PERFORMANCE DEPENDS ON HOW ITS IMPLIED BETS PAY OFF SMALL INDEXES CAN ALSO DIFFER GREATLY IN SIZE WITH SOME EMBRACING MULTIBILLIONDOLLAR COMPANIES THAT SMALLSTOCK PURISTS WOULD GENERALLY SHUN FOR INSTANCE PEOPLE GENERALLY THINK OF THE NASDAQ COMPOSITE INDEX AND THE WILSHIRE 4500 AS SMALLSTOCK INDEXES BUT THEY'RE REALLY NOT SAYS PRUDENTIAL'S MS MOTT THE CAPITALIZATION RANGES OF THESE TWO INDEXES PUT THEM SOLIDLY IN THE MIDCAP GROUP SHE SAYS AND SINCE THEIR RESULTS ARE HEAVILY INFLUENCED BY EXPOSURE TO A FEW BIG STOCKS SUCH AS INTEL APPLE COMPUTER AND MICROSOFT THEY ACTUALLY AREN'T A GREAT GAUGE OF SMALL STOCKS' BEHAVIOR IF YOUR AIM IS TO CAPTURE THE PERFORMANCE OF SMALL STOCKS USE THE RUSSELL 2000 INDEX OR THE WILSHIRE SMALL CAP INDEX OF ALL THE POSSIBLE CHOICES THEY PROBABLY DO THE BEST JOB SAYS MS MOTT OVERALL THE COMPANIES IN THESE TWO INDEXES REPRESENT THE SMALLSTOCK SECTOR QUITE ACCURATELY WITH NO BIG CONCENTRATION IN A FEW LARGE COMPANIES THAT COULD SKEW RETURNS THEY'RE ALSO LIQUID ENOUGH TO BE POPULAR WITH BIG INSTITUTIONS WHOSE HUGE BUYING POWER COULD GIVE AN EXTRA BOOST TO THESE INDEXES' RETURNS SAYS MS MOTT THE MAIN DIFFERENCE BETWEEN THEM IS THAT THE RUSSELL 2000 REPRESENTS A WIDER ARRAY OF SMALL STOCKS HOWEVER THAT COULD END UP BEING A PITFALL THE REASON THIS INDEX OWNS MORE THAN ITS SHARE OF FROTHY NEW STOCKS A RESULT OF THE BOOM IN INITIAL PUBLIC OFFERINGS DURING THE PAST COUPLE OF YEARS IF THOSE STOCKS FALTER AS HISTORY SUGGESTS THEY MIGHT THIS INDEX WOULD STAND TO BE HURT MOST MEANWHILE THE BEST VALUE IN SMALLSTOCK INDEXES TODAY SEEMS TO BE THE IBBOTSON SMALL COMPANY INDEX STOCKS IN THIS INDEX LOOK CHEAPER THAN STOCKS IN OTHER INDEXES RELATIVE TO THEIR EARNINGS BOOK VALUE AND OTHER FUNDAMENTALS THAT MAY BE AN ESPECIALLY APPEALING FEATURE IN TODAY'S MARKET SOME ANALYSTS SAY WE LIKE SMALL STOCKS IN GENERAL BUT WE LIKE SMALL VALUE STOCKS IN PARTICULAR SAYS RICHARD BERNSTEIN MANAGER OF QUANTITATIVE ANALYSIS AT MERRILL LYNCH & CO IF YOU'RE GOING TO GO WITH AN INDEX I'D RECOMMEND THE IBBOTSON SMALL COMPANY INDEX BECAUSE IT HAS THE BEST VALUE RESEARCH ON SMALL STOCKS CONSISTENTLY SHOWS THAT IN THE LONG TERM AT LEAST THE SMALLEST STOCKS HAVE PRODUCED THE BIGGEST GAINS FOR INVESTORS SINCE THE IBBOTSON SMALL COMPANY INDEX IS THE SMALLEST OF THE SMALL INDEXES IT FOLLOWS THAT IT WILL MOST CLOSELY MIRROR THE PERFORMANCE OF THAT GROUP SAYS MS MOTT HERE ARE THUMBNAIL SKETCHES OF THE MAJOR SMALLCOMPANY INDEXES AND A RUNDOWN OF INVESTMENTS THAT TRACK THEM NASDAQ COMPOSITE TECHNICALLY A MIDCAP INDEX MADE UP OF ALL THE OVERTHECOUNTER STOCKS THAT TRADE ON THE NASDAQ NATIONAL MARKET SYSTEM WHILE NO MUTUAL FUND TRACKS THE NASDAQ COMPOSITE INDEX LAST MONTH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR PERMISSION TO TRADE WARRANTS BASED ON THIS INDEX WILSHIRE 4500 ANOTHER MIDCAP INDEX THAT BASICALLY COMPRISES ALL US EXCHANGETRADED STOCKS MINUS THOSE IN THE S&P 500 INDEX IT'S ALSO A MISNOMER BECAUSE IT CONTAINS WELL OVER 5000 NAMES NOT 4500 INDIVIDUALS HAVE INVESTED AL MOST 600 MILLION IN THE WILSHIRE 4500 THROUGH THE VANGUARD EXTENDED MARKET MUTUAL FUND RUSSELL 2000 REPRESENTS THE SMALLEST TWOTHIRDS OF THE 3000 LARGEST US COMPANIES MUTUALFUND INVESTORS HAVE ACCESS TO THIS INDEX THROUGH VANGUARD SMALL CAPITALIZATION STOCK FUND WHICH IS DESIGNED TO TRACK IT IN ADDITION THE CHICAGO BOARD OPTIONS EXCHANGE LAUNCHED OPTIONS ON THE RUSSELL 2000 IN NOVEMBER WILSHIRE SMALL CAP DELIBERATELY DESIGNED FOR INVESTORS AND TRADERS IT CULLS 250 STOCKS FROM A UNIVERSE SIMILAR TO BUT SLIGHTLY LARGER THAN THE RUSSELL 2000 STOCKS ARE SCREENED BY SIZE INDUSTRY SECTOR AND LIQUIDITY NO ONE FUND TRACKS THIS INDEX BUT DREYFUS CORP RECENTLY LAUNCHED A PAIR OF SMALLCOMPANY INDEX FUNDS THAT IF HELD IN TANDEM FORM A REASONABLE PROXY FOR IT THE FUNDS ARE DREYFUSWILSHIRE TARGET SMALL COMPANY VALUE AND DREYFUSWILSHIRE TARGET SMALL COMPANY GROWTH FOR MORE SOPHISTICATED TYPES THE PACIFIC STOCK EXCHANGE INTRODUCED OPTIONS ON THE WILSHIRE SMALL CAP INDEX IN JANUARY IBBOTSON SMALL COMPANY AN INDEX MADE UP OF ALL STOCKS THAT MATCH THE SIZE RANGE OF THE SMALLEST ONEFIFTH OF STOCKS TRADED ON THE NEW YORK STOCK EXCHANGE THE STOCKS ARE SELECTED FROM AMONG THOSE TRADED ON THE BIG BOARD THE AMERICAN STOCK EXCHANGE AND THE NASDAQ OVERTHECOUNTER MARKET DFA US 910 SMALL COMPANY MUTUAL FUND WHICH TRACKS THE IBBOTSON INDEX REQUIRES A MINIMUM INVESTMENT OF 50000 HOWEVER INDIVIDUALS CAN BUY INTO THIS FUND FOR AS LITTLE AS 250 THROUGH CHARLES SCHWAB & CO 9303170038 930317 WHITE HOUSE NAMES SAWHILL TO BUDGET POST WASHINGTON ISABEL V SAWHILL A SENIOR FELLOW AT THE URBAN INSTITUTE WAS NAMED ASSOCIATE DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE FOR HUMAN RESOURCES BUDGET DIRECTOR LEON PANETTA SAID MS SAWHILL 55 YEARS OLD AN ECONOMIST PREVIOUSLY WORKED AT THE BUDGET OFFICE AND AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHE WAS DIRECTOR OF THE NATIONAL COMMISSION FOR EMPLOYMENT POLICY FROM 1977 TO 1980 MR PANETTA ALSO IS EXPECTED TO NAME CHRISTOPHER EDLEY A HARVARD LAW SCHOOL PROFESSOR WHO WAS ACTIVE IN THE CLINTON AND DUKAKIS PRESIDENTIAL CAMPAIGNS TO BE ASSOCIATE DIRECTOR FOR ECONOMICS AND GOVERNMENT BUT HAS YET TO CHOOSE AN ASSOCIATE DIRECTOR FOR NATURAL RESOURCES ENERGY AND SCIENCE 9303170037 930317 HONDA FACES PROBE OVER ALLEGED BRIBES FROM ACURA DEALERS A WALL STREET JOURNAL NEWS ROUNDUP A US ATTORNEY WILL INVESTIGATE ALLEGATIONS THAT OFFICIALS OF JAPAN'S HONDA MOTOR CO ACCEPTED BRIBES FROM ACURA DEALERS WHO WANTED SPECIAL PRIVILEGES FOR THEIR LUXURYCAR DEALERSHIPS THERE COULD BE INDICTMENTS OR THERE COULD BE NOTHING FOLLOWING THE INVESTIGATION SAYS US ATTORNEY PETER PAPPS OF CONCORD NH THE INQUIRY STEMS FROM EVIDENCE GATHERED IN CONNECTION WITH A LAWSUIT FILED IN 1989 BY A CONCORD ACURA DEALER RICHARD M NAULT MR NAULT CLAIMS HONDA IGNORED HIS AILING FRANCHISE WHILE GIVING SPECIAL TREATMENT TO A NEARBY ACURA DEALER WHO BRIBED THE DISTRICT SALES MANAGER HE ALLEGES THAT PAUL T BOHLANDER GAVE A NEW ACURA INTEGRA AUTOMOBILE TO DAVID L PEDERSEN AN ACURA DISTRICT SALES MANAGER MR NAULT CLAIMS THAT AFTER MR PEDERSEN WAS PROMOTED TO ASSISTANT ZONE MANGER MR BOHLANDER GAVE HIM FOUR PAYMENTS TOTALING 17197 IN CASH DURING TESTIMONY IN US DISTRICT COURT IN CONCORD MR BOHLANDER ADMITTED HE MADE THE PAYMENTS MR NAULT ALLEGES MR BOHLANDER RECEIVED PREFERENTIAL TREATMENT AS A DIRECT RESULT OF THE PAYMENTS FOR INSTANCE MR BOHLANDER WAS AWARDED AN ACURA DEALERSHIP IN MANCHESTER NH AFTER HE GAVE MR PEDERSEN A NEW CAR MR NAULT SAYS HE ASKED ACURA FOR A DEALERSHIP IN MANCHESTER BUT WAS REFUSED IN MARCH 1989 MR NAULT MOVED HIS STRUGGLING ACURA SHOWROOM INTO HIS CONCORD LINCOLNMERCURY DEALERSHIP A MOVE THAT VIOLATES ACURA'S POLICY AGAINST OPERATING TWO FRANCHISES IN A SINGLE FACILITY THAT'S WHEN ACURA CANCELED ITS AGREEMENT WITH MR NAULT SAYING THE DEALERSHIP AS OPERATED IN A SUBSTANDARD FACILITY AND WITH LESSTHANSTATED CAPITAL REQUIREMENTS MR NAULT RESPONDED BY FILING THE LAWSUIT WHICH CHARGES HONDA WITH WRONGFULLY TERMINATING THE AGREEMENT AND BAD FAITH AND UNREASONABLE CONDUCT IN LOCATION OF THE FRANCHISE THE ALLEGATIONS OF BRIBERY COME AT A DIFFICULT TIME FOR ACURA THE LUXURY DIVISION'S SALES HAVE FALLEN 22 SO FAR THIS YEAR TO 16631 HONDA IS COUNTING ON THIS SUMMER'S LAUNCH OF THE REDESIGNED INTEGRA TO BOOST SALES THE CIVIL CASE WILL GO TO JURY TRIAL IN JUNE MR PAPPS'S INVESTIGATION WILL LOOK AT OTHER ALLEGED BRIBERY INCIDENTS IN ADDITION TO THE ONE CONCERNING MR NAULT MR PAPPS'S INVESTIGATION WILL LOOK AT OTHER ALLEGED BRIBERY INCIDENTS IN ADDITION TO THE ONE CONCERNING MR NAULT 9303170036 930317 ECONOMY HOUSING STARTS REBOUNDED 25 DURING FEBRUARY BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING STARTS REBOUNDED 25 IN FEBRUARY THE COMMERCE DEPARTMENT SAID BUT HARSH WINTER WEATHER LED TO A FURTHER DECLINE IN STARTS OF SINGLEFAMILY HOMES THE BAD WEATHER PREVENTED A LOT OF HOUSING STARTS SAID DAVID BERSON VICE PRESIDENT AND CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WE MAY WELL SEE THE SAME THING IN MARCH WITH THE GREAT BLIZZARD OF 1993 STARTS ROSE LAST MONTH TO AN ANNUAL RATE OF 1208000 THE DEPARTMENT SAID FOLLOWING A REVISED DECLINE OF 84 IN JANUARY STARTS OF SINGLEFAMILY HOMES FELL 08 AFTER A DROP OF 64 IN JANUARY STARTS OF MULTIUNIT DWELLINGS WHICH VARY WIDELY FROM MONTH TO MONTH ROSE 33 IN FEBRUARY AFTER FALLING 24 IN JANUARY THE FIGURES ARE ADJUSTED FOR SEASONAL VARIATION BUILDING PERMITS A SIGN OF FUTURE HOUSING STARTS FELL FOR THE SECOND STRAIGHT MONTH DECLINING 31 AFTER FALLING 17 IN JANUARY ECONOMISTS REMAIN OPTIMISTIC THAT HOUSING STARTS HAVE MERELY BEEN DELAYED BY BAD WEATHER AND NOT CANCELED I WOULD EXPECT THAT ONCE THE WEATHER FINALLY GETS BETTER THE HOUSING STARTS WILL INCREASE MR BERSON SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS IS PREDICTING A 10 GROWTH IN SINGLEFAMILY STARTS FROM LAST YEAR HE STANDS BY HIS FORECAST DESPITE THE FEBRUARY SETBACK AND A 97 INCREASE IN LUMBER PRICES SINCE OCTOBER HE CITES RECORDLOW MORTGAGE RATES A BRIGHTENING ECONOMY AND PENTUP DEMAND FROM THE ECONOMIC SLOWDOWN MR SEIDERS ATTRIBUTES THE EXPLOSION IN LUMBER PRICES TO INCREASED DEMAND AND DECREASED SUPPLY ESPECIALLY FROM FEDERAL LAND IN THE NORTHWEST WE'VE SEEN UPS AND DOWNS BUT THIS IS THE BIGGEST UP THAT WE'VE EVER SEEN AND IT DOESN'T LOOK LIKE IT'S GOING TO BREAK MR SEIDERS SAID 9303170035 930317 BIG US BANKS REGAINED STATUS IN '92 AS MOST PROFITABLE GROUP IN THE WORLD BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FIRST TIME SINCE 1988 LARGE US BANKS STAND ALONE AS THE MOST PROFITABLE BANKING GROUP IN THE WORLD BODING WELL FOR IMPROVED CREDIT RATINGS AND THE RETURN OF LOST BUSINESS THE STRONG 1992 SHOWING BY MORE THAN THREE DOZEN LARGE US BANKS WILL OUTSHINE MOST FOREIGN BANKS AS THEIR RESULTS BECOME AVAILABLE PREDICTS ROBIN MONRODAVIES MANAGING DIRECTOR OF IBCA LTD THE LONDON RATINGS AGENCY HOWEVER HSBC HOLDINGS PLC THE BRITISHBASED HOLDING COMPANY FOR HONGKONG & SHANGHAI BANKING CORP IS THE WORLD'S MOST PROFITABLE BANK REPORTING 1992 EARNINGS EQUIVALENT TO 185 BILLION FOUR US BANKING COMPANIES EACH EXCEEDED 1 BILLION IN PROFIT LAST YEAR LED BY BANKAMERICA CORP AT 149 BILLION IT WAS FOLLOWED BY JP MORGAN & CO 138 BILLION NATIONSBANK CORP 115 BILLION AND CHEMICAL BANKING CO 109 BILLION MR MONRODAVIES SAID IN A REPORT TO CLIENTS THIS WEEK THAT HE DOESN'T EXPECT ANY OTHER FOREIGN BANKS TO APPROACH THOSE LEVELS THE RESULTS ARE MORE REMARKABLE GIVEN THE COMPARABLE ASSET SIZES OF US BANKS ONLY CITICORP IS AMONG THE WORLD'S 20 LARGEST AND ONLY SEVEN US BANKS RANK IN THE WORLD'S LARGEST 100 MOREOVER THE OUTLOOK FOR 1993 FOR US BANKS IS FAR MORE FAVORABLE THAN FOR VIRTUALLY ALL COMPETITORS THE IBCA REPORT SAID MOODY'S INVESTORS SERVICE INC WHICH HAS BEEN THE TOUGHEST OF ALL THE RATING AGENCIES ON US BANKS AGREES THE AMERICANS ARE COMING UP AND THE REST OF THE WORLD IS COMING DOWN SAID CHRISTOPHER MAHONEY AN ASSOCIATE DIRECTOR WHILE COMPARATIVE RATINGS OF CREDITWORTHINESS BETWEEN US BANKS AND COMPETITORS IN MANY PARTS OF THE WORLD ARE STILL PRETTY FAR APART HE AGREES WITH IBCA THAT THEY WILL NARROW AS PRESENT TRENDS CONTINUE ALTHOUGH IMPROVED CREDIT RATINGS HELP BANKS IN THE INTERNATIONAL FUNDING MARKETS GET BETTER RATES FOR MONEY THEY BORROW THE MAIN ADVANTAGE IS PRESTIGE AND THE COMPETITIVE EDGE THEY GAIN OVER OTHER BANKS SAID MR MONRODAVIES HE ADDED THAT JAPANESE BANKS ESPECIALLY HAD TAKEN A LARGER SHARE OF THE US CORPORATE MARKET IN THE 1980S BECAUSE OF AGGRESSIVE PRICING AND AAA CREDIT RATINGS NOW NONE OF THE JAPANESE BANKS ARE TOPRATED AND US BANKS ARE IN A POSITION TO REGAIN SOME OF THE LOST BUSINESS MOREOVER AS JAPANESE BANKS AND INCREASINGLY MAJOR EUROPEAN BANKS CONCENTRATE ON MAKING OR KEEPING THEIR HOME COUNTRY BUSINESS PROFITABLE THEY WILL BE LESS ACTIVE IN COMPETING FOR US CUSTOMERS HE PREDICTS THE LAST TIME US BANKS DOMINATED THE PROFITABILITY RANKS WAS 1988 JUST BEFORE COMMERCIAL REAL ESTATE PROBLEMS AND A PROLONGED ECONOMIC SLUMP TOOK HOLD RATINGS AGENCIES SLICED THE RATINGS OF ALMOST ALL THE TOPRATED US BANKS WITH THE EXCEPTION OF JP MORGAN SENDING MANY US CORPORATE TREASURERS FLEEING TO HIGHERRATED FOREIGN BANKS THE TREASURERS TURNED TO THEM FOR COMMERCIAL PAPER BACKUP LINES OF CREDIT TRADERELATED LETTERS OF CREDIT AND OTHER FINANCIAL INSTRUMENTS SUCH AS INTEREST RATE AND CURRENCY SWAPS WHERE THE ABILITY OF A BANK TO MEET POTENTIAL FUTURE OBLIGATIONS IS KEY NOW US BANKS ARE REAPING THE BENEFITS OF LOW INTEREST RATES A BOTTOMING OUT OF REAL ESTATE PRICES AND ECONOMIC RECOVERY NONE OF THE 42 LARGE US BANKS IBCA TRACKS REPORTED A LOSS LAST YEAR COMPARED WITH EIGHT A YEAR EARLIER MR MAHONEY NOTES THAT A NUMBER OF MAJOR BANKING SYSTEMS MOST NOTABLY JAPAN ARE NOT PROFITABLE EVEN BEFORE TAKING RESERVE PROVISIONS FOR FUTURE LOAN LOSSES CANADIAN BRITISH AND AUSTRALIAN BANKING COMPANIES ARE PROFITABLE AND CAN REMAIN SO DESPITE HIGHER CREDIT EXPENSES HE ADDS THE PICTURE IS MIXED IN EUROPE MR MAHONEY SAYS SCANDINAVIAN BANKS HAVE GOOD CORE EARNINGS BUT LOAN PROBLEMS ARE SO SEVERE THAT THEY ARE BECOMING INSOLVENT AND GETTING RESCUED HE ADDED THAT HE DOES NOT EXPECT TO SEE SUCH PROBLEMS IN FRANCE GERMANY AND SWITZERLAND BUT THE OUTLOOK FOR MAJOR BANKING COMPANIES BASED IN THOSE COUNTRIES IS FOR POOR PERFORMANCE ALSO BECAUSE OF RISING CREDIT EXPENSES STANDARD & POOR'S CORP IS ALSO TAKING NOTE OF THE REBOUND IN THE US AS IT UPGRADES MORE AND MORE BANKS RECENTLY IT PUT CHEMICAL ON REVIEW FOR A POSSIBLE UPGRADE OF ITS SHORTTERM RATING AN INCREASE TO SINGLEA1 FROM SINGLEA2 WOULD BE SIGNIFICANT BECAUSE A NUMBER OF OTHER NEW YORK BANKING COMPANIES INCLUDING CHASE MANHATTAN CORP BANK OF NEW YORK CORP AND CITICORP ARE ALSO RATED SINGLEA2 AND HAVE SIMILAR OVERALL CHARACTERISTICS NOTES MICHAEL DESTEFANO A DIRECTOR IN THE FINANCIAL INSTITUTIONS GROUP IT WOULD IMPLY A WILLINGNESS TO ADDRESS OTHER RATINGS HE ADDED 9303170034 930317 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN PAUL STREET WAS NAMED INTERIM CHIEF EXECUTIVE OFFICER OF CASABLANCA FAN CO MR STREET 41 YEARS OLD REMAINS CASABLANCA'S CHAIRMAN AND VICE PRESIDENT GENERAL MANAGER OF THE CORPORATE RESTRUCTURING GROUP OF GE CAPITAL SERVICES INC A DIVISION OF GENERAL ELECTRIC WHICH OWNS CASABLANCA HE SUCCEEDS TOM LAIRD 43 WHO LEFT THE COMPANY TO PURSUE OTHER INTERESTS CASABLANCA MAKES CEILING FANS AND CLIMATECONTROL PRODUCTS IN CITY OF INDUSTRY CALIF GE IS AN ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN 9303170033 930304 LEISURE & ARTS BIRD FEEDING IN CENTRAL PARK ACT OF FAITH OR FOLLY BY MARIE WINN NEW YORK PEOPLE WHO FEED BIRDS IN WINTER ARE OFTEN COMPELLED BY ANXIOUS THOUGHTS THEY FEAR THAT IF THEY DON'T FILL THEIR FEEDERS THE SMALL CREATURES WILL DIE ONE MIGHT SAY THAT THEY SUFFER FROM A MILD FORM OF A COMMON PSYCHOLOGICAL PHENOMENON THE RESCUE FANTASY DESCRIBED BY FREUD IN THE PSYCHOPATHOLOGY OF EVERYDAY LIFE YET FOR A LITTLE BAND OF NEW YORKERS WHO FAITHFULLY FEED THE BIRDS IN CENTRAL PARK THE PLEASURES OF THEIR SELFAPPOINTED TASK FAR OUTWEIGH ANY UNDERLYING ANXIETY THE CENTRAL PARK BIRDFEEDING SQUAD MEETS EVERY WEDNESDAY MORNING AT THE PARK'S ROMANTIC BELVEDERE CASTLE THAT'S WHERE THE SEED PAID FOR BY PRIVATE DONATIONS AND THE OTHER BIRDFEEDING PARAPHERNALIA ARE STORED FROM THERE MURRAY LIEBMAN A TEACHER AT LA GUARDIA COMMUNITY COLLEGE NORMA COLLIN A FORMER DAYLINE CRUISE LECTURER AND BEN ROCKMORE A RETIRED LAWYER LUG THE HEAVY BAGS OF SEED AND A LONG POLE TO THE FEEDING STATION AT THE AZALEA POND THE AZALEA POND IS A SMALL BODY OF WATER FED BY ONE OF THE PARK'S MOST PICTURESQUE PHENOMENA THE GILL A MANMADE REPLICA OF A MEANDERING STREAM THAT IS TURNED ON AND OFF BY A HIDDEN FAUCET ALMOST PERFECTLY LOCATED IN THE HEART OF THAT ARTFULLY DESIGNED 37ACRE WILDERNESS KNOWN AS THE RAMBLE THE POND AREA PROVIDES LIGHT AND SHADE LARGE TREES SHALLOW WATER UNDERBRUSH FOR BIRDS TO TAKE SHELTER IN AND TWO BENCHES FOR BIRD WATCHERS THE PERFECTION IS MARRED ONLY SOMEWHAT BY THE LARGE NUMBER OF IDEAL PERCHES AVAILABLE NEARBY TO CENTRAL PARK'S RESIDENT AND VISITING HAWKS REDTAILED SHARPSHINNED COOPER'S AND INFREQUENTLY A GOSHAWK UNFORTUNATELY THESE PREDATORS ADD AN OCCASIONAL SONGBIRD TO THEIR USUAL DIET OF RATS AND PIGEONS BUT THIS DOESN'T HAPPEN OFTEN ENOUGH TO CAUSE THE BIRD LOVERS MUCH DISTRESS HAWKS ARE BIRDS TOO AFTER ALL THE REGULAR SQUAD OF BIRD FEEDERS IS OFTEN JOINED BY JOE RICHNER WHO RAN THE FEEDING STATION FOR ALMOST A DECADE UNTIL HE FELL ILL IN 1990 A RETIRED FREIGHT INSPECTOR AND WEIGH MASTER FOR THE ERSTWHILE NEW YORK CENTRAL RAILROAD MR RICHNER HAS BEEN A REGULAR VISITOR TO THE PARK SINCE 1925 WHEN HE WAS SEVEN YEARS OLD HE HAS RECOVERED FROM HIS ILLNESS AND IS STILL ONE OF THE MOST ACTIVE FIGURES IN THE CENTRAL PARK BIRDWATCHING AND BIRDFEEDING COMMUNITY IT WAS UNDER HIS AEGIS THAT THE FEEDING STATION EXPANDED FROM AN INFORMAL RATHER SMALLPOTATOES OPERATION TO THE AMBITIOUS ENTERPRISE OF TODAY THESE DAYS STROLLERS IN THE RAMBLE ARE OFTEN ASTONISHED TO COME UPON A BIRD PARADISE COMPOSED OF SEVEN HUGE AND CLEVERLY DESIGNED FEEDERS HANGING 15 FEET ABOVE THE LITTLE POND THREE LOWHANGING FEEDERS AND SEVERAL WIRE ENCLOSURES FOR RAW BEEF SUET AND OF COURSE THERE ARE THE BIRDS ON THE GROUND IN THE BUSHES AT THE FEEDERS BIRDS SINGING FIGHTING FEEDING DRAB BIRDS COLORFUL BIRDS SPECTACULARLY BEAUTIFUL BIRDS BLUE JAYS FOR INSTANCE PLAIN BIRDS AND EVEN OCCASIONALLY RARE BIRDS SUCH AS THE BRAZILIAN CARDINAL WHO FLUTTERED IN FOR THE WINTER A FEW YEARS AGO THE MAN BEHIND MOST OF THE HANGING FEEDERS IS GEORGE MULLER ANOTHER PARK REGULAR HE MADE THE FEEDERS OUT OF ONEGALLON PLASTIC JUGS THAT ONCE CONTAINED WINDSHIELDWIPER FLUID NOW THEY ARE FILLED WITH SUNFLOWER SEEDS BIRDS ENTER THE JUGS THROUGH A SMALL HOLE CUT INTO THE PLASTIC A 3/8INCH DOWEL INSERTED JUST BELOW THE HOLE SERVES AS A PERCH THE JUGS HANG FROM COAT HANGERS TWISTED INTO HOOKS FRISBEES ATTACHED BETWEEN THE HOOKS AND THE JUGS KEEP SQUIRRELS OUT OF THE FEEDERS MR MULLER GOT THE IDEA FOR HIS PESTPROOF SYSTEM FROM SOMETHING HE REMEMBERED FROM HIS DAYS AS AN ENGINEROOM WIPER IN THE MERCHANT MARINE MANY MOONS AGO THE TIN COLLARS ATTACHED TO THE MOORING LINES OF SHIPS IN PORT THAT KEEP RATS FROM GETTING ABOARD MR MULLER ALSO DEVISED A TELESCOPING POLE MADE OUT OF ELECTRICALCONDUIT PIPES WHICH THE BIRD SQUAD USES TO HOIST THE SEEDFILLED JUGS ONTO TREE LIMBS 15 FEET OFF THE GROUND THE SQUAD OFTEN MEETS OTHER BIRD LOVERS AT THE AZALEA POND INDEPENDENT OPERATORS ONE MIGHT CALL THEM WHO BRING OTHER SUPPLIES A YOUNG MAN NAMED EVAN KAMIL STOCKS THE LOWHANGING FEEDERS WITH MILLET FOR BLACKBIRDS GRACKLES AND MOURNING DOVES BILL DEGRAPHENREID WHO GREW UP ON A FARM IN INDIANA AND WAS ONCE IN THE LEATHER TRADE USUALLY COMES WITH A HOMECOOKED BIRD TREAT THAT HAS BEEN DUBBED SUET SUPREME IT IS A COMBINATION OF RENDERED BEEF SUET COOKED HOMINY GRITS AND TWO OR THREE EGGS I TRIED IT AND FOUND IT QUITE TASTY COME AND GET IT CROONS MR DEGRAPHENREID AS HE PRESSES THE GREASY GLOP INTO THE BARK OF A COUPLE OF DEEPLY CORDED MALE CORK TREES PHELLODENDRON AMURENSE THAT DOMINATE THE AZALEA POND FEEDING AREA WITHIN MINUTES THE REDBELLIED WOODPECKERS ARRIVE ANNOUNCING THEMSELVES NOISILY WITH THEIR CHARACTERISTIC CHURRR A COUPLE OF SMALLER DOWNY WOODPECKERS CHECK IN SHORTLY THEREAFTER FOLLOWED BY A PROCESSION OF TITMICE AND NUTHATCHES BIRDS THAT USUALLY FREQUENT THE HANGING FEEDERS THE SUET CONCOCTION IS ALSO THE CLEAR FAVORITE OF THE TINY BROWN CREEPER A WELLCAMOUFLAGED RELATIVE OF THE TITMOUSE CLAN AND THE ONLY REPRESENTATIVE OF THE CERTHIIDAE FAMILY IN ALL OF NORTH AMERICA IN THE COURSE OF THEIR AVIAN ACTIVITIES THE PEOPLE WHO FEED BIRDS IN CENTRAL PARK ARE OFTEN CONFRONTED BY KIBITZERS WHO BELIEVE FOR ONE REASON OR ANOTHER THAT BIRD FEEDING IS OUTANDOUT HARMFUL TO THE SMALL RECIPIENTS OF MERCY TWO DISTINCT AND NOT ILLOGICAL FEARS UNDERLIE THE ATTITUDES OF THE ANTIFEEDERS ONE IS THAT FEEDING BIRDS ESPECIALLY IN THE WINTER WILL CAUSE WILD BIRDS TO BECOME OVERLY DEPENDENT ON HUMANSUPPLIED SOURCES OF FOOD THUS THE THEORY CONTINUES THEY WILL LOSE THEIR NATURAL ABILITIES TO FORAGE FOR FOOD IN THE WILD THE SECOND ANTIFEEDING ARGUMENT SUGGESTS THAT THE AVAILABILITY OF EASILY OBTAINED FOOD MIGHT LURE MIGRATORY BIRDS TO LINGER TOO LONG AT THE FEEDER CAUSING THEM TO MISS THEIR OPTIMUM CHANCE FOR A SUCCESSFUL TRIP SOUTH IN FACT BIRD EXPERTS REJECT BOTH HYPOTHESES THE RHYTHMS OF MIGRATION SCIENTISTS HAVE ASCERTAINED ARE HORMONALLY DRIVEN AND NO AMOUNT OF DELICIOUS FEEDER FOOD CAN DELAY A BIRD'S TAKEOFF FOR WARMER CLIMES THAT IS UNLESS THE BIRD IS AILING IN SOME WAY AND UNABLE TO LEAVE THE NOTION THAT BIRDS LOSE THEIR NATURAL ABILITIES TO SURVIVE THANKS TO HUMAN HANDOUTS IS SIMILAR TO THE IDEA THAT WELFARE RECIPIENTS LOSE THEIR WILL TO WORK ONCE THEY ARE ON THE DOLE THIS HAS BEEN FIRMLY DISPROVED BY SCIENTISTS AT LEAST THE BIRD PART OF THE ANALOGY AS REPORTED IN THE SPRING 1992 ISSUE OF THE JOURNAL OF FIELD ORNITHOLOGY A TEAM OF WILDLIFE ECOLOGISTS AT THE UNIVERSITY OF WISCONSIN DEVISED AND CARRIED OUT A RIGOROUSLY CONTROLLED EXPERIMENT INVOLVING TWO GROUPS OF BLACKCAPPED CHICKADEES ONE A BUNCH WHO HAD FED REGULARLY AT A FEEDER FOR THREE PREVIOUS YEARS BEFORE BEING LEFT TO FEND FOR THEMSELVES THE OTHER A CAREFULLY MONITORED CHICKADEE FLOCK THAT HAD NO POSSIBLE EXPERIENCE WITH FEEDING STATIONS THESE TWO GROUPS WERE COMPARED DURING A HARSH WINTER AND THE FORMERFEEDERS PROVED TO HAVE THE SAME SURVIVAL RATE AS THE FEEDERVIRGINS SINCE SCIENCE HAS MADE IT HARD TO JUSTIFY THE WINTER FEEDING OF BIRDS AS A RESCUE MISSION SHOULD BIRD FEEDING CONTINUE IN CENTRAL PARK FOR MR LIEBMAN THE ANSWER IS CLEAR IT'S THE HIGH SPOT OF MY WEEK HE SAYS ABOUT HIS WEEKLY BIRDFEEDING STINT MR DEGRAPHENREID SAYS EMPHATICALLY I FEED BIRDS BECAUSE I ENJOY THEIR COMPANY THE FEEDERS ARE THERE FOR THE BIRDS OF COURSE BUT THEY'RE ALSO THERE FOR THE PEOPLE EXPLAINS SARAH ELLIOTT A LEADER OF BIRD WALKS IN THE PARK AND COORDINATOR OF THE ANNUAL CHRISTMAS BIRD COUNT PEOPLE WHO HAVE NEVER LOOKED AT A BIRD BEFORE COME BY THE AZALEA POND COME TO KNOW SOME BIRDS AND GET TO KNOW EACH OTHER IT BECOMES A SOCIAL PLACE AND THAT MEANS IT'S A SAFE PLACE NORMA COLLIN CONCLUDES CENTRAL PARK IS MY DOMAIN MY BACK YARD AND I WANT MY BACK YARD TO HAVE ALL DIFFERENT VARIETIES OF BIRDS IN IT BIRD FEEDING WAS ALWAYS PART OF CENTRAL PARK AND IF I CAN HELP IT IT ALWAYS WILL BE MS WINN IS A NEW YORK WRITER SEE RELATED LETTER LETTERS TO THE EDITOR BIRDS OF A FEATHER ON THE DOLE TOGETHER WSJ MARCH 16 1993 9303040114 9303170032 930317 NOW THEY PLAN TO REMOVE THEM FROM PRISON AND COOP THEM UP BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL MARIN CALIF THE LOCAL HUMANE SOCIETY IS SQUAWKING OVER THE TREATMENT OF SAN QUENTIN'S JAILBIRDS NOT PRISONERS THE SOCIETY LOOKS AFTER ANIMALS NOT HUMANS BUT THE HUNDREDS OF PIGEONS THAT PRISON OFFICIALS WANT TO ROUST FROM THEIR ROOSTS IN THE STATE PENITENTIARY'S 70YEAROLD EAVES AND RAFTERS THE FLAP STARTED WHEN THE PRISON PRESSURED BY CALIFORNIA HEALTH OFFICIALS PAID WILDLIFE BIOLOGIST GARY BEEMAN 500 TO STALK SAN QUENTIN'S TEEMING PIGEON COLONY WITH A HIGHPOWERED AIR RIFLE THE PRISON HAD REJECTED POISONING AS AN ALTERNATIVE AND ATTEMPTS TO TRAP THE FEATHERED OFFENDERS FAILED BECAUSE INMATES LIKE TO FEED THEM AND SHOO THEM AWAY FROM THE CAGES I DIDN'T WANT TO SHOOT THE BIRDS BUT IT WAS OUT OF DESPERATION SAYS MR BEEMAN ESCORTED BY GUARDS ONE FEBRUARY NIGHT THE MARKSMAN PLUGGED ABOUT 100 WITH HIS NIGHTSCOPEEQUIPPED GUN THE NEXT DAY THOUGH THE PRISON DECLARED A CEASEFIRE AFTER TWO WOUNDED BIRDS WERE TURNED IN TO THE NEARBY CALIFORNIA CENTER FOR WILDLIFE AND ANONYMOUS PRISON EMPLOYEES ALERTED THE HUMANE SOCIETY WHICH PROTESTED TO THE WARDEN PRISONERS DEVELOP AN AFFECTION FOR THE BIRDS THEN THE PRISON HIRES SHARPSHOOTERS TO KILL THEM SAYS ELLIOT KATZ PRESIDENT OF IN DEFENSE OF ANIMALS A NATIONAL ANIMALRIGHTS GROUP THAT ALSO GOT INVOLVED I CAN'T THINK OF ANY BETTER WAY TO EMBITTER PEOPLE AGAINST THE ESTABLISHMENT AND SOCIETY AT LARGE A SAN QUENTIN SPOKESMAN DOUBTS THAT THE INJURED PIGEONS CAME FROM THE PRISON NOTING THAT EMPLOYEES WOULD HAVE HAD TO SMUGGLE THEM OUT UNDER THEIR COATS BUT OFFICIALS HAVE AGREED TO STUDY HUMANESOCIETY PROPOSALS FOR MOREEFFECTIVE NETTING AND FOR FEEDING BIRDS CORN LACED WITH A BIRTHCONTROL AGENT AND THE NETTED BIRDS WE HOPE TO PUT THEM UP FOR ADOPTION SAYS A SOCIETY SPOKESWOMAN WE'RE LOOKING FOR HOMES WHERE PEOPLE CAN ADOPT 20 TO 30 BIRDS AT ONE TIME THESE ARE HEALTHY BIRDS AND THEY MAKE WONDERFUL PETS WELL MAYBE THE HUMANE SOCIETY IS CONSULTING PIGEON BREEDERS TO LEARN WHAT HEALTH RISKS MIGHT BE INVOLVED FOR HIS PART MR BEEMAN IS RELIEVED THAT HIS ROLE IS DONE I WAS AFRAID PRISONERS MIGHT PUT THE WORD OUT ON THE OUTSIDE HE SAYS THEN HIS VOICE TRAILS OFF IF WORD GOT OUT I WAS THE ASSASSIN KILLING THESE PETS 9303170031 930317 CREDIT MARKETS TREASURY ISSUES RISE ON FED MOVE TO ADD RESERVES TO BANKING SYSTEM AND ON HOUSING RETAIL DATA BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE TREASURY MARKET FOUND A BIG BUYER YESTERDAY IN THE FEDERAL RESERVE WHICH ALONG WITH SUPPORTIVE ECONOMIC DATA HELPED BOOST PRICES OF TREASURY NOTES AND BONDS THE BENCHMARK 30YEAR TREASURY BOND ROSE FOR THE FIRST TIME IN SIX TRADING SESSIONS TO CLOSE AT 103 5/32 UP MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ENDED AT 687 DOWN FROM 689 THE 10YEAR NOTE ROSE MORE THAN 1/2 POINT TO 101 11/32 TO YIELD 606 DOWN FROM 613 YOU HAD A NUMBER OF EVENTS WHICH CONTRIBUTED TO A BETTER MARKET THROUGHOUT THE COURSE OF THE DAY SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES MUCH OF YESTERDAY'S PRICE GAINS CAME IN RESPONSE TO A PURCHASE OF TREASURY NOTES BY THE FEDERAL RESERVE IN THE OPEN MARKET THE FED ARRANGED THE PURCHASE WHICH IS KNOWN AS A COUPON PASS AS A MEANS OF ADDRESSING A SEASONAL NEED TO ADD RESERVES TO THE BANKING SYSTEM THE MOVE HAD NO MONETARY POLICY SIGNIFICANCE TYPICALLY AT THIS TIME OF YEAR THE AMOUNT OF CURRENCY CIRCULATING IN THE HANDS OF THE GENERAL PUBLIC TENDS TO RISE ALONG WITH THE AMOUNT OF RESERVES THAT BANKS HAVE TO HOLD AGAINST THEIR DEPOSITS BOTH OF THESE FACTORS REQUIRE MORE RESERVES IN THE BANKING SYSTEM WHICH THE FED ACCOMPLISHES BY PURCHASING SECURITIES FROM DEALERS THEY HAVE A VERY LARGE NEED TO ADD RESERVES AT THIS TIME OF YEAR SAID MARILYN SCHAJA A MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP MS SCHAJA AND OTHER ANALYSTS SAID IT APPEARED THAT THE FED WAS AGGRESSIVE IN BUYING POSSIBLY PICKING UP 4 BILLION WORTH OF SECURITIES THE ACTUAL AMOUNT OF THE PURCHASE WILL NOT BE KNOWN FOR ANOTHER WEEK FROM THE MARKET'S STANDPOINT THE COUPON PASS PROVIDED A LARGE BUYER WHO WAS WILLING TO TAKE UNWANTED SECURITIES OFF DEALERS' SHELVES VERY SIMPLY YOU HAVE A VERY BIG BUYERSOMEONE THAT STEPS IN AND WANTS TO BUY 4 BILLION WORTH OF COUPONS SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS WHILE SOME ANALYSTS HAD PREDICTED THE COUPON PASS WOULD TAKE PLACE YESTERDAY MOST ON WALL STREET HAD BELIEVED IT WAS MORE LIKELY TO OCCUR TOWARD THE END OF THE MONTH IT WASN'T WIDELY EXPECTED SAID MS SCHAJA OF DLJ THAT'S WHY THE MARKET MOVED SO MUCH IN ADDITION TO THE FED TREASURYS FOUND SUPPORT IN ECONOMIC DATA YESTERDAY STARTING WITH THE COMMERCE DEPARTMENT'S HOUSING STARTS REPORT WHILE STARTS GAINED 25 IN FEBRUARY TO A 1208 MILLIONUNIT ANNUAL RATE THE INCREASE WAS SMALLER THAN MOST HAD FORECAST THE MARKET GOT OFF TO A GOOD START WITH THE HOUSING STARTS REPORT MS SCHAJA SAID WE DID SEE A SMALL INCREASE BUT I WAS LOOKING FOR A BIGGER INCREASE GIVEN LOWER MORTGAGE RATES THEN LATE IN THE SESSION JUST BEFORE THE CLOSE OF FUTURES TRADING THE MARKET GOT ITS SECOND PIECE OF GOOD ECONOMIC NEWS THE JOHNSON REDBOOK SERVICE REPORTED CHAIN AND DEPARTMENT STORE SALES FELL 36 DURING THE FIRST TWO WEEKS OF MARCH FROM FEBRUARY HOWEVER THE GROUP AN AFFILIATE OF LYNCH JONES & INC SAID MISERABLE WEATHER WAS THE MAIN CAUSE OF THE POOR SALES FIGURES NEVERTHELESS IT WAS ANOTHER POSITIVE FACTOR FOR THE MARKET THERE WAS AN UPWARD BIAS ALL ALONG AND JOHNSON REDBOOK CONTRIBUTED TO THAT BIAS FIRST CHICAGO'S MR KARYDAKIS SAID TRADERS SAID ANOTHER FACTOR SUPPORTING THE MARKET YESTERDAY WAS THE HIGH COST OF FINANCING SHORT POSITIONS IN THE CURRENT FIVEYEAR AND 10YEAR NOTES AS BOTH ISSUES ARE TRADING ON WHAT IS KNOWN AS SPECIAL IN THE REPO MARKET WHEN A TRADER SELLS AN ISSUE SHORT IN HOPES OF BUYING IT BACK AT LOWER LEVELS FOR A PROFIT THE TRADER MUST TEMPORARILY BORROW SECURITIES TO DELIVER TO THE BUYER IN ORDER TO BORROW THE SECURITY TRADERS WILL OFFER LOANS TO HOLDERS OF THE ISSUES THEY NEED WITH THE SECURITY HANDED OVER TO THE TRADER AS COLLATERAL IF THERE IS GREATER DEMAND FOR A PARTICULAR SECURITY DUE TO LARGE SHORT POSITIONS IN THE ISSUE TRADERS ARE FORCED TO OFFER LOWER AND MORECOMPETITIVE INTEREST RATES ON THE LOANS AS THESE SOCALLED REPURCHASE RATES FOR AN ISSUE DECLINE IT MAKES IT LESS ATTRACTIVE OR EVEN COSTLY FOR A DEALER TO MAINTAIN THE SHORT BOTH THE FIVEYEAR AND 10YEAR NOTES TRADED NEAR ZERO PERCENT YESTERDAY AFTERNOON IN THE REPURCHASE MARKET AND AT SUCH LEVELS PLAYERS HAVE BEEN RELUCTANT TO SELL THOSE ISSUES SHORT THE FIVEYEAR NOTE APPEARED TO BE HELPED THE MOST BY ITS SCARCITY IN THE REPURCHASE MARKET THE FIVEYEAR WAS VERY STRONG PRIMARILY BECAUSE OF WHAT WAS GOING ON IN THE REPURCHASE MARKET SAID FIRST CHICAGO'S MR KARYDAKIS YESTERDAY THE FIVEYEAR NOTE ROSE MORE THAN 3/8 POINT TO 99 12/32 TO YIELD 526 DOWN FROM 536 ON MONDAY A SPOKESMAN FOR THE FEDERAL RESERVE BANK OF NEW YORK SAID THE FED HAS BEEN ASKING PRIMARY DEALERSHIPS TO REPORT ON TRADING IN THE FIVEYEAR NOTE THE FIRMS WERE NOTIFIED LAST FRIDAY THAT BEGINNING THIS PAST MONDAY THEY MUST PROVIDE DAILY REPORTS ON ACTIVITY IN THE ISSUE UNTIL FURTHER NOTICE MARKET CONDITIONS IN THE NOTE ARE OUT OF THE ORDINARY AND WE WANT TO GATHER MORE INFORMATION ABOUT WHAT MAY BE CAUSING IT THE SPOKESMAN SAID WHILE TREASURYS HAD A GOOD TONE THROUGHOUT THE SESSION THE INFLATION FEARS THAT HAD SENT PRICES TUMBLING IN RECENT SESSIONS HAD NOT COMPLETELY EVAPORATED IT WASN'T EXACTLY A RESOUNDING RALLY SAID MR BRIGGS OF DEUTSCHE BANK THAT TELLS ME PEOPLE WERE STILL WAITING FOR THE CONSUMER PRICE INDEX REPORT PLAYERS CONTINUE TO BE WARY OF THE CONSUMER PRICE INDEX REPORT FOR FEBRUARY DUE OUT TODAY FORECASTS CENTER ON A 03 INCREASE FOR THE INDEX BOTH WITH AND WITHOUT THE VOLATILE FOOD AND ENERGY COMPONENT FACTORED IN LAST MONTH THE MARKET WAS ABLE TO WEATHER AN UNEXPECTED 05 RISE IN THE CPI BUT GIVEN LAST WEEK'S BEARISH PRODUCER PRICE INDEX REPORT AND THE RECENT RISE IN COMMODITIES PRICES THE MARKET IS SEEN AS MORE VULNERABLE THE MARKET WILL HAVE VERY LITTLE TOLERANCE FOR ANOTHER STRONG NUMBER SAID MR KARYDAKIS OF FIRST CHICAGO I DON'T THINK IT CAN TAKE ANOTHER 05 WHILE THE FIRST TIME AROUND IT DID VERY LITTLE DAMAGE THERE ARE SOME LIMITS TO WHAT SORT OF NUMBER YOU CAN ABSORB ALSO TODAY THE TREASURY DEPARTMENT WILL ANNOUNCE THE SIZE OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS EXPECTATIONS CENTER ON 1525 BILLION IN TWOYEAR NOTES AND 110 BILLION IN FIVEYEAR NOTES BOTH UNCHANGED FROM LAST MONTH HOWEVER SOME ANALYSTS SAY THERE IS A POSSIBILITY OF BOTH ISSUES BEING REDUCED IN SIZE ABOUT 1 BILLION OF NEW MUNICIPAL BONDS WERE BROUGHT TO MARKET YESTERDAY AS PRICES OF ACTIVELY TRADED ISSUES REBOUNDED AFTER SHARP LOSSES MONDAY BUT MANY LARGE ISSUES REMAIN ON HOLD AS BORROWERS HOPE FOR FURTHER DECLINES IN YIELDS AMONG SUCH ISSUES ARE PHOENIX'S 2918 MILLION OF GENERAL OBLIGATION REFUNDING BONDS THE SOUTH CAROLINA'S PUBLIC SERVICE CENTER'S 600 MILLION DEBT OFFERING THE MASSACHUSETTS WATER RESOURCES AUTHORITY'S 480 MILLION OF REFUNDING BONDS AND OMAHA NEB'S PUBLIC POWER DISTRICT'S 500 MILLION OF REVENUE BONDS ONE MARKET WORTH WATCHING IS FOR CERTIFICATES OF PARTICIPATION KNOWN AS COPS FOLLOWING YESTERDAY'S VOTE IN WHICH BREVARD COUNTY FLA OPTED TO CONTINUE MAKING LEASE PAYMENTS ON 239 MILLION OF SUCH CERTIFICATES ISSUED IN 1989 TO FINANCE A GOVERNMENT OPERATIONS CENTER THE RESULT BY A SLIM MARGIN IS BULLISH FOR THE COMPANIES THAT HAVE SOLD FORMS OF INSURANCE FOR SUCH ISSUES A VOTE TO DEFAULT COULD HAVE MEANT THE MUNICIPAL BOND INVESTORS ASSURANCE CORP WHICH INSURED THE ISSUE WOULD HAVE HAD TO MAKE ALL FUTURE PAYMENTS ON THE COPS ELSEWHERE MANY IN THE MUNICIPAL BOND MARKET EXPECT NEW YORK CITY TO ANNOUNCE A NEW LIST OF UNDERWRITERS TODAY FOR ITS DEBT ISSUES NEW YORK IS ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL DEBT EARLIER THIS YEAR AN OFFICIAL CLOSE TO THE SELECTION PROCESS SAID THAT THE CITY PLANNED TO EXPAND ITS LIST OF SENIOR MANAGERS FOR TAXEXEMPT GENERAL OBLIGATION DEBT BEYOND THE FIVE FIRMS IT HAS USED FOR THE PAST TWO YEARS THE ROTATING UNDERWRITING TEAM HAD BEEN MADE UP OF LEHMAN BROTHERS BEAR STEARNS & CO GOLDMAN SACHS & CO MERRILL LYNCH & CO AND FIRST BOSTON CORP THE CORPORATE BOND MARKET CONTINUED TO IDLE YESTERDAY CHEVRON CANADA FINANCE LTD A UNIT OF CHEVRON CORP OFFERED THE SESSION'S SOLE INVESTMENTGRADE CORPORATE ISSUE FEDERAL HOME LOAN BANK A GOVERNMENT SPONSORED AGENCY WAS ALSO ACTIVE WITH ABOUT 400 MILLION OF BORROWING HOWEVER ISSUANCE OF PREFERRED STOCK APPEARED TO PICK UP PHILADELPHIA ELECTRIC CO CHEMICAL BANKING CORP AND PACIFIC GAS & ELECTRIC CO WERE AMONG THE SESSION'S PREFERRED ISSUERS TRADING IN THE SECONDARY MARKET WAS ALSO MUTED HIGHGRADE ISSUES GAINED 1/8 TO 1/4 WHILE JUNK BONDS ROSE 1/8 ALTHOUGH CERTAIN SECTORS CONTINUED TO CHEAPEN RELATIVE TO TREASURYS INCLUDING UTILITY BONDS BUYERS ARE NOT STEPPING FORWARD TRADERS SAID DEALERS CONTINUED TO HOLD LARGE POSITIONS OF UNSOLD BONDS FROM LAST WEEK'S PRIMARY MARKET ACTIVITY BUT INVESTORS WERE SEEN MOVING CAUTIOUSLY CORPORATE MARKET DEALINGS THIS MONTH HAVE SLOWED DRAMATICALLY FROM THE FRANTIC PACE SEEN EARLIER THIS YEAR WHEN COMPANIES ROUTINELY ISSUED AS MUCH AS 6 BILLION OF NEW DEBT A DAY PRICES OF MORTGAGE SECURITIES ENDED AS MUCH AS 5/8 POINT HIGHER LIFTED BY THE RISE IN TREASURYS AND BY DEALER PURCHASES OF COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS IN SECONDARY TRADING OF 7 MORTGAGE SECURITIES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 1/2 POINT HIGHER AT 100 2/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 5/8 POINT STRONGER AT 100 3/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 19/32 HIGHER AT 99 28/32 SEPARATELY FREDDIE MAC ANNOUNCED A 500 MILLION SERIES GOLD 1503 DEAL BACKED BY THE AGENCY'S GOLD 7 MORTGAGE SECURITIES AND OFFERED BY NOMURA SECURITIES INTERNATIONAL FANNIE MAE ANNOUNCED A 300 MILLION REMIC SERIES 199353 COLLATERALIZED WITH THAT AGENCY'S 75 MORTGAGE SECURITIES THE WEEK HAS GOTTEN OFF TO A HEAVY START WITH MORE THAN 25 BILLION REMICS ANNOUNCED SO FAR CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9303170030 930317 INTERNATIONAL TELEFONOS DE MEXICO PHONE LINES MEXICO CITY TELEFONOS DE MEXICO SA SAID IT PLANS TO ADD 846000 NEW TELEPHONE LINES TO THE COUNTRY'S NETWORK IN 1993 30000 PAY TELEPHONES AND EXTEND ITS FIBER OPTIC NETWORK FURTHER NATIONWIDE THE TELEPHONE COMPANY WHICH WAS PRIVATIZED IN 1990 ALSO SAID FAX AND CELLULAR TELEPHONE SERVICE WOULD BE SHARPLY EXPANDED IN 30 MEXICAN CITIES THIS YEAR THE ANNOUNCEMENT CAME AT A CONFERENCE ON COMMUNICATIONS IN MEXICO CITY MEXICO'S TELEPHONE SYSTEM IS IN DIRE NEED OF UPDATING TELMEX'S CRITICS COMPLAIN THAT WHILE HUNDREDS OF THOUSANDS OF NEW PHONE LINES ARE ADDED EACH YEAR MILLIONS MORE ARE ANTIQUATED AND SWITCHING EQUIPMENT DATING TO THE 1940S MAKES CROSSED LINES OR NO LINES A COMMON OCCURRENCE 9303170028 930317 WEB OF FEAR NEW KIND OF TERRORIST AMATEUR AND AD HOC WORRIES AUTHORITIES AMID GLOBAL ISLAMIC FERVOR MUSLIM EXTREMISTS FORM LOOSE CHANGING GROUPS HEEDING THE WORD OF CLERICS BY WILLIAM M CARLEY AND TIMOTHY L O'BRIEN STAFF REPORTERS OF THE WALL STREET JOURNAL A NEW BREED OF TERRORIST IS UNLEASHING DEATH AND DESTRUCTION AROUND THE GLOBE IN CONTRAST TO THE CLOSEKNIT DISCIPLINED GROUPS OF THE 1980S THE NEW THREAT COMES FROM LOOSE GROUPINGS OF PEOPLE OF SIMILAR BACKGROUNDS AND BELIEFS WHO SEE TERROR AS A WAY TO STRIKE OUT AGAINST THEIR ENEMIES THESE GROUPS MAY ENGAGE IN SEVERAL ASSAULTS OR MAY BE ASSEMBLED TO CARRY OUT JUST ONE BOMBING TERROR EXPERTS SAY THEY MAY BENEFIT FROM SOME LINKS TO A GOVERNMENT SUCH AS IRAN'S BUT OPERATE LARGELY ON THEIR OWN SOME ARE WELLTRAINED BUT MORE OFTEN THEY ARE HARDLY TRAINED AT ALL THEIR TRACKS SHOW UP IN MANY PLACES IN A COFFEE SHOP IN CENTRAL CAIRO EGYPT A HOMEMADE BOMB PACKED WITH NAILS EXPLODED LAST MONTH KILLING THREE PEOPLE AND INJURING 16 INCLUDING FOREIGN BUSINESSMEN AND TOURISTS LAST YEAR A CAR BOMB DEMOLISHED THE ISRAELI EMBASSY IN DOWNTOWN BUENOS AIRES KILLING 29 PEOPLE AND INJURING MORE THAN 200 OTHERS AND ON FEB 26 THE WORLD TRADE CENTER IN NEW YORK SHOOK FROM A MASSIVE BOMB THAT BLEW THROUGH SEVEN CONCRETE FLOORS LEAVING SIX PEOPLE DEAD ABOUT 1000 INJURED AND HUNDREDS OF MILLIONS OF DOLLARS IN DAMAGE AS GEOGRAPHICALLY SEPARATED AS THESE ATTACKS ARE ANALYSTS OF INTERNATIONAL TERRORISM BELIEVE THERE IS A COMMON THREAD THESE ASSAULTS AS WELL AS RECENT ATTACKS IN TURKEY TUNISIA ALGERIA AND OTHER COUNTRIES ARE BEING ATTRIBUTED BY TERRORISM EXPERTS TO THE RISE OF MUSLIM FUNDAMENTALISTS WHO ARE USING VIOLENCE BECAUSE OF A VARIETY OF GRIEVANCES AND GOALS WITHIN ISLAM THE VIOLENT EXTREMISTS ARE A TINY MINORITY SEVERAL MUSLIM GROUPS HAVE ROUNDLY CONDEMNED THE TRADE CENTER BOMBING AND MODERATE PALESTINIANS SEEKING A PEACE ACCORD WITH ISRAEL ARE APPALLED AT THE THOUGHT THAT EXTREMISTS' ACTS COULD DERAIL THE SHAKY PEACE PROCESS NONETHELESS TO THOSE WHO WORRY ABOUT TERROR THE RELIGIOUS EXTREMISTS LOOM LARGE THERE'S BEEN A BASIC CHANGE FROM THE SMALL GROUPS OF PROFESSIONAL TERRORISTS TO AMORPHOUS GROUPS OFTEN MADE UP OF RANK AMATEURS SAYS DAVID WHIPPLE A FORMER CENTRAL INTELLIGENCE AGENCY COUNTERTERRORISM OFFICIAL THESE UNSTRUCTURED GROUPS HE ADDS ARE ACTING IN GENERAL SUPPORT OF ISLAMIC FUNDAMENTALIST BELIEFS IT'S MORE OF A CONCEPT THAN A WELLDEFINED ORGANIZATION WHILE MOREVISIBLE ORGANIZED GROUPS LIKE THE INFAMOUS ABU NIDAL GANG WHICH HAD THE BACKING OF LIBYA AND SYRIA MAY SIMPLY BE LYING DORMANT THE RISE OF THIS INFORMAL WEB OF TERRORISTS IS DISTURBING TO LAWENFORCEMENT OFFICIALS PARTLY BECAUSE ITS ACTIVITIES ARE HARDER TO DETECT AND DETER THIS WILL BE MUCH MORE DIFFICULT FOR THE US TO COMBAT SAYS L PAUL BREMER A FORMER STATE DEPARTMENT COUNTERTERRORISM OFFICIAL EVEN IF DETECTED THE FUNDAMENTALIST TERRORISTS WON'T BE EASY TO THWART BECAUSE THEY ARE OFTEN ORGANIZED IN SMALL LOCAL GROUPS AROUND A CHARISMATIC CLERIC AS A RESULT SAYS AS'AD ABUKHALIL A LEBANESE SCHOLAR AT THE MIDDLE EAST INSTITUTE IN WASHINGTON EVEN IF ONE CLERIC IS JAILED THERE ARE OTHERS LIKE HIM TO INSPIRE TERRORISM THESE NEW TERRORISTS THOUGH OFTEN AMATEURS CAN MORE THAN MAKE UP FOR THEIR LACK OF EXPERIENCE BY THEIR ZEAL AND WILLINGNESS TO TAKE EXTREME RISKS THESE AREN'T PEOPLE ON A PAYROLL LIKE THOSE IN SOME OF THE OLD TERROR ORGANIZATIONS THESE ARE TRUE BELIEVERS SAYS MIKE ACKERMAN A FORMER CIA AGENT WHOSE CONSULTING COMPANY ANALYZES TERRORISM TRENDS SOME OF THE MEN INVOLVED IN THE TRADE CENTER BOMBING ARE BELIEVED TO HAVE BEEN INSPIRED BY THE VITRIOLIC RHETORIC OF AN EGYPTIAN FUNDAMENTALIST CLERIC WHO HAS BEEN LIVING IN NEW JERSEY SHEIK OMAR ABDELRAHMAN AND THERE'S NO QUESTION BUT THAT THE TRADE CENTER BOMBERS TOOK ENORMOUS RISKS TO MAKE A TRIGGER FOR THE BOMB LAWENFORCEMENT OFFICIALS SAY THEY CONCOCTED A BATCH OF NITROGLYCERINE A SUBSTANCE SO VOLATILE THAT EVEN BUMPING A FLASK COULD HAVE BLOWN THEM TO BITS PROFESSIONAL TERRORISTS PREFER MORE STABLE MATERIALS EXPERTS SAY THE METHOD OF IGNITING THE BOMB MAY HAVE BEEN PRIMITIVE AS WELL AS DANGEROUS AMOUNTING TO A LIGHT THE WICK AND RUN TECHNIQUE ONE INVESTIGATOR SAYS THE MUSLIM TERRORISTS AS LOOSEKNIT AS THEY MAY BE STILL HAVE A GLOBAL REACH AS IF TO SHOW OFF THEIR INTERNATIONAL CAPABILITIES A FUNDAMENTALIST GROUP IN PESHAWAR PAKISTAN SENT A FAX LAST WEEK TO THE CAIRO OFFICE OF THE REUTER NEWS AGENCY DENYING ANY INVOLVEMENT IN THE TRADE CENTER BOMBING BY SHEIK OMAR A SPOKESMAN FOR THE IMAM ALSO SAID HE CONDEMNED THE BLAST THE GROUP IN PESHAWAR CALLED GAMA'A ELISLAMIYA ISLAMIC GROUP ADDED A VEILED THREAT THAT UNJUSTLY DEFAMING THE CLERIC WILL UNDER NO CONDITIONS PASS WITHOUT ACTIONS BY HIS FOLLOWERS AND SUPPORTERS IN THE WORLD WHEN THEY DO CARRY OUT BOMBINGS AND SHOOTINGS THE EXTREMISTS MAY ACT OUT OF A VARIETY OF SPECIFIC MOTIVES IN MANY CASES THERE IS BROAD RESENTMENT AGAINST ISRAEL AND THAT NATION'S MAJOR BACKER THE US IN EGYPT AND ALGERIA THE MUSLIM EXTREMISTS OPPOSE THEIR GOVERNMENTS WHOSE SECULAR POLICIES ARE ANATHEMA TO THEM AND IN THE ISLAMIC WORLD THERE IS BROAD ANGER AT THE US FOR WAGING WAR AGAINST IRAQ MR ABUKHALIL OF THE MIDDLE EAST INSTITUTE SAYS THAT LARGELY AS A RESULT OF THE WAR THE LEVEL OF MUSLIM ANTIPATHY TOWARDS THE US IS UNPRECEDENTED IN CONTEMPORARY HISTORY SOME ANALYSTS THINK THE WORLD TRADE CENTER BLAST COULD HAVE ITS ROOTS IN THE PERSIAN GULF WAR ANNIVERSARIES ARE VERY IMPORTANT TO MANY MUSLIMS AND THE BOMBING IN NEW YORK CAME JUST TWO YEARS AFTER THE US DROVE IRAQI FORCES OUT OF KUWAIT TERRORIST ATTACKS THE ONE AGAINST THE WORLD TRADE CENTER AND A SERIES IN TURKEY SHOW SOME OF THE VARIED FACETS OF THE NEW MUSLIM FUNDAMENTALIST TERROR APPARATUS THE TRADE CENTER BOMBING ANALYSTS SAY INCLUDES A CURIOUS BLEND OF PROFESSIONAL AND AMATEUR CHARACTERISTICS THE TARGETING AND METHOD APPEAR TO BE THE WORK OF PROFESSIONALS FROM THE MIDEAST THE TARGET A SYMBOL OF AMERICAN BUSINESS AND THE BOMBINAVAN METHOD ARE BOTH HALLMARKS OF MIDDLE EASTERN PROS SAYS MR ACKERMAN HE AND SOME OTHER ANALYSTS BELIEVE A PROFESSIONAL TERRORIST MAY HAVE FLOWN INTO THE US MONTHS AGO AND OUTLINED THESE POINTS TO THE HALFDOZEN MEN IN THE NEW YORK AREA WHO ARE BELIEVED TO HAVE CARRIED OUT THE ATTACK FINANCING ALSO CAME FROM ABROAD INCLUDING THOUSANDS OF DOLLARS THAT WERE WIRED TO A NEW JERSEY BANK THROUGH A GERMAN BANK INVESTIGATORS SAY THE MONEY APPARENTLY WAS USED TO BUY BOMB MATERIALS AND OTHER ITEMS AT THIS POINT HOWEVER THE OPERATION BECAME LESS THAN PROFESSIONAL ONE OF THE MEN ARRESTED IS A 25YEAROLD JORDANIANBORN PALESTINIAN LIVING IN JERSEY CITY NJ NAMED MOHAMMED SALAMEH THE DAY BEFORE THE BOMBING MR SALAMEH ALONG WITH SEVERAL OTHER MEN GATHERED AT A RENTAL STORAGE UNIT IN JERSEY CITY THERE IN SIGHT OF A STORAGEUNIT EMPLOYEE THE MEN LOADED UP A YELLOW RYDER VAN WITH MATERIALS THAT EVIDENTLY WERE BOMB PARTS AND MR SALAMEH ALSO IN SIGHT OF THE STORAGEUNIT EMPLOYEE USED A PAY PHONE TO MAKE SEVERAL CALLS APPARENTLY SEEKING INSTRUCTIONS ON THE BOMB MATERIALS IN THEIR INQUIRY FEDERAL BUREAU OF INVESTIGATION AGENTS SHOWED MR SALAMEH'S PICTURE TO THE STORAGE UNIT EMPLOYEE WHO QUICKLY IDENTIFIED HIM WE HAVE EXCELLENT IDENTIFICATIONS FROM WITNESSES SAYS JAMES ESPOSITO CHIEF OF THE FBI'S NEWARK OFFICE FBI AGENTS ALSO OBTAINED TELEPHONECOMPANY RECORDS SHOWING THAT CALLS FROM THE PAY PHONE WENT TO THE DESK OF NIDAL AYYAD A CHEMICAL ENGINEER WORKING FOR ALLIEDSIGNAL INC IN NEW JERSEY THE ARREST OF MR AYYAD A PALESTINIAN WHOSE FAMILY MOVED FROM KUWAIT TO THE US IN 1985 SOON FOLLOWED THERE WERE OTHER BLUNDERS MR SALAMEH'S RENTAL OF THE VAN USING HIS OWN NAME INSTEAD OF AN ALIAS ALLOWED THE FBI TO TRACE HIM QUICKLY MR SALAMEH'S POSSESSION OF MR AYYAD'S BUSINESS CARD PROVIDED YET ANOTHER CLUE THE FIRST THING WE WERE TAUGHT WAS TO CLEAN OUT OUR WALLETS SAYS MR WHIPPLE THE FORMER CIA OFFICIAL DESPITE SUCH GAFFES MR SALAMEH'S RETURN TO THE RYDER RENTAL AGENCY TO RECLAIM HIS 400 DEPOSIT AFTER THE VAN HAD BEEN STOLEN IS NOT NECESSARILY SEEN BY ANALYSTS AS ANOTHER BLUNDER TO AVOID SUSPICION YOU TRY TO DO THE NORMAL THING AND IN THIS CASE THE NORMAL THING WOULD BE TO GO BACK FOR YOUR REFUND SAYS MR WHIPPLE BOTH MR SALAMEH AND MR AYYAD ARE EXPECTED TO FIGHT THE CHARGES AGAINST THEM OFFICIALS MEANWHILE CONTINUE TO SEARCH FOR SUSPECTS AND A MOTIVE IN THE BLAST THUS FAR THEY HAVEN'T BEEN ABLE TO ESTABLISH ANY LINK WITH A KNOWN INTERNATIONAL GROUP OR STATE SPONSOR OF TERRORISM WHILE THE NEW JERSEY GROUP LOOKS MUCH LIKE THE GANG THAT COULDN'T SHOOT STRAIGHT THAT DOESN'T MEAN ALL FUNDAMENTALIST EXTREMISTS ARE WITHOUT TRAINING THERE ARE TRAINING CAMPS FOR TERRORISTS IN IRAN LEBANON AND SUDAN ANALYSTS SAY IRONICALLY THE CIA HELPED TRAIN FUNDAMENTALISTS IN TERRORISM IN AFGHANISTAN IN THE 1980S SO THEY COULD FIGHT THE SOVIETBACKED KABUL GOVERNMENT THE CIA HAS SINCE DUMPED THE AFGHAN FUNDAMENTALISTS TO SUPPORT MORE MODERATE GROUPS LEAVING HUNDREDS OF CIATRAINED TERRORISTS ANGRY AT THE US SOME OF THESE PEOPLE ARE BELIEVED RESPONSIBLE FOR SOME ATTACKS AROUND THE WORLD THE STORY OF THE RECENT BRUTAL ASSAULTS BY TURKISH FUNDAMENTALISTS WHO CALL THEMSELVES THE ISLAMIC MOVEMENT IS SOMEWHAT DIFFERENT FROM THE TRADE CENTER BOMBING IN TURKEY THE FUNDAMENTALISTS OPPOSED TO THE SECULAR GOVERNMENT AND ITS ALIGNMENT WITH THE US AS WELL AS TO ISRAEL WERE WELLTRAINED IN AN IRANIAN MILITARY CAMP NEAR TEHRAN THEY WERE ABLE TO CARRY OUT A NUMBER OF ATTACKS AND GET AWAY WITH MOST OF THEM IN 1990 THE FUNDAMENTALISTS MACHINEGUNNED TWO PROMINENT TURKISH WRITERS WHO HAD BEEN OUTSPOKEN CRITICS OF ISLAMIC FUNDAMENTALISM A YEAR LATER EXTREMISTS WORKING WITH IRANIAN AGENTS KIDNAPPED ALI AKBAR GHORBANI A PROMINENT IRANIAN DISSIDENT THEN LIVING IN ISTANBUL HE WAS HELD FOR 10 DAYS AND TORTURED BEFORE BEING STRANGLED BUT EVEN WELLTRAINED TERRORISTS SLIP OCCASIONALLY ON JAN 28 TURKISH FUNDAMENTALISTS TRIED TO KILL A JEWISH BUSINESSMAN IN ISTANBUL BY USING AN ANTITANK MISSILE AGAINST HIS ARMORED CAR THE MISSILE MISFIRED AND THE ATTACKERS FLED SEVERAL WERE ARRESTED DAYS LATER TERRORIST ATTACKS AROUND THE WORLD BY MUSLIM EXTREMISTS MAY GROW FOR SEVERAL REASONS ANALYSTS SAY MR ABUKHALIL CITES WIDESPREAD POVERTY AS WELL AS FUNDAMENTALISTS' FRUSTRATION BECAUSE IN MANY NATIONS THEY CAN'T CHANGE THINGS BY LEGITIMATE MEANS THE FUNDAMENTALIST ELECTORAL VICTORY LAST YEAR IN ALGERIA HE NOTES HAS BEEN THWARTED BY A BRUTAL CRACKDOWN BY THE SECULAR GOVERNMENT IN POWER ROBERT HUNTER FORMER DIRECTOR OF MIDDLE EASTERN AFFAIRS FOR THE NATIONAL SECURITY COUNCIL SAYS THE FUNDAMENTALIST EXTREMISTS ALSO MAY GAIN ADHERENTS PARTLY BECAUSE OF THE FADING APPEAL OF THE OLDER TERRORIST GROUPS WHICH FAILED TO WIN MAJOR POLITICAL AND ECONOMIC PAYOFFS FOR THE MASSES OF PEOPLE HE ADDS THAT A NEW CYCLE OF VIOLENCE MAY BE SPURRED BY RECENT EVENTS SUCH AS ISRAEL'S MOVE TO EXPEL 400 PALESTINIANS AND THE PLIGHT OF MUSLIMS IN BOSNIA I THINK WE'LL SEE MORE TERRORISM COMING OUT OF RADICAL ISLAM MR HUNTER CONCLUDES THE OLDER STATESPONSORED GROUPS ARE STILL BEING VIEWED AS A THREAT TOO PARTICULARLY HEZBOLLAH THE TERRORIST ORGANIZATION BACKED BY IRAN WHAT WE'RE LOOKING AT IS WORLDWIDE ACTIVITIES BY HEZBOLLAH THEIR INFRASTRUCTURE MOVEMENT AND MONEY EXTEND TO ALL REGIONS OF THE WORLD EXCEPT FOR ANTARCTICA SAYS A US GOVERNMENT EXPERT WHETHER THAT MEANS MORE TERRORISM IN THE US IN THE MANNER OF THE WORLD TRADE CENTER ATTACK IS ANOTHER QUESTION MR WHIPPLE PREDICTS THAT THERE WILL BE MORE ATTEMPTS BUT THAT MOST OF THEM WILL BE THWARTED BY US INTELLIGENCE AND LAWENFORCEMENT AGENCIES THESE PLOTS WILL BE NIPPED IN THE BUD AND WE WON'T EVEN HEAR OF MOST OF THEM HE SAYS BUT BECAUSE THESE NEW EXTREMIST GROUPS ARE SO HARD TO KEEP TRACK OF MR WHIPPLE ADDS A FEW MAY SLIP THROUGH CARLA ANNE ROBBINS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9303170027 930317 BUSINESS BRIEF CAMPBELL SOUP CO FIRM SAYS IT'S CONSIDERING BUILDING FACTORY IN CHINA CAMPBELL SOUP CO SAID IT IS INVESTIGATING THE POSSIBILITY OF BUILDING A SOUP FACTORY IN CHINA TO SERVE WHAT THE COMPANY SAID COULD DEVELOP INTO ITS SINGLEBIGGEST OPPORTUNITY DAVID JOHNSON CHAIRMAN SAID THE CAMDEN NJ COMPANY IS FINDING AN EAGER MARKET FOR SOME OF ITS SOUPS SINCE THE INTRODUCTION OF PRODUCTS LAST FALL THOSE PRODUCTS INCLUDE SWANSON BROTH AND CAMPBELL BRAND SOUPS INCLUDING SUCH VARIETIES AS WATERCRESS AND DUCK GIZZARD CAMPBELL NOW SERVES THE CHINESE MARKET FROM SACRAMENTO CALIF VIA HONG KONG MR JOHNSON SAID HE EXPECTS CAMPBELL TO DECIDE IN ABOUT A YEAR WHETHER TO BUILD A PLANT ON THE CHINESE MAINLAND COMPANY OFFICIALS WOULDN'T COMMENT ON WHAT THE FACILITY MIGHT COST BUT MR JOHNSON SAID WE WOULD START SMALL MR JOHNSON SPOKE IN AMELIA ISLAND FLA WHERE HE AND OTHER OFFICIALS WERE ADDRESSING THE WINTER CONFERENCE OF THE CONSUMER ANALYSTS GROUP OF NEW YORK THE MEETING WAS CLOSED TO THE PRESS 9303170026 930317 BUSINESS BRIEF FIFTH THIRD BANCORP TENTATIVE PACT SETS PURCHASE OF SHELBY COUNTY BANCORP FIFTH THIRD BANCORP OF CINCINNATI SAID IT HAS REACHED A PRELIMINARY AGREEMENT TO ACQUIRE PUBLICLY HELD SHELBY COUNTY BANCORP SHELBYVILLE IND UNDER TERMS OF THE PROPOSED PACT FIFTH THIRD WOULD TRADE 65 MILLION OF ITS COMMON STOCK FOR THE COMMON SHARES OF SHELBY COUNTY WHICH ACCORDING TO THE AGREEMENT IS VALUED AT ABOUT 3522 A SHARE FIFTH THIRD SAID IF THE TRANSACTION IS COMPLETED SHELBY COUNTY BANCORP WITH ASSETS OF 55 MILLION WOULD BE MERGED INTO THIS BANK HOLDING COMPANY'S FIFTH THIRD BANK OF SOUTHEASTERN INDIANA UNIT FIFTH THIRD SAID THE PACT REQUIRES APPROVAL FROM THE OFFICE OF THRIFT SUPERVISION AND SHELBY COUNTY BANCORP AS WELL AS OTHER REGULATORY APPROVALS 9303170025 930317 EDUCATION HIGHTECH CONNECTION BETWEEN SCHOOLS AND SCIENCE EXPEDITIONS ENLIVENS CLASSES BY NEIL ULMAN STAFF REPORTER OF THE WALL STREET JOURNAL EDUCATION BREAKTHROUGH OR HIGHTECH GIMMICK A NEW KIND OF TEACHING IS HUMMING ACROSS THE WORLD'S EXPANDING TELECOMMUNICATIONS LINKS CALLED ADVENTURE LEARNING OR SOMETIMES EXPEDITIONARY LEARNING IT IS EXPECTED TO TIE SCIENTIFIC AND ADVENTURE EXPEDITIONS ELECTRONICALLY TO MORE THAN 800000 STUDENTS WORLDWIDE THIS YEAR MAJOR US AND FOREIGN COMPANIES ARE BACKING IT WITH MOTIVES THAT MIX SUPPORT FOR EDUCATION WITH PUBLICRELATIONS AND MARKETDEVELOPMENT NEEDS IN THE EDUCATIONAL ESTABLISHMENT THE JURY IS STILL OUT BUT MANY CHILDREN AND TEACHERS ARE ENTHRALLED HUNCHED OVER A COMPUTER CONSOLE IN MILWAUKEE FOR EXAMPLE SIXTHGRADER MIKE LARSEN CAREFULLY PUSHES A JOYSTICK FORWARD AND TWISTS IT TO THE RIGHT SOME 1600 MILES AWAY AND OVER A MILE DEEP IN MEXICO'S SEA OF CORTEZ A SUBMERSIBLE ROBOT RESPONDS TO HIS COMMAND GHOSTLY UNDERSEA CREATURES CAPTURED BY THE ROBOT'S VIDEO CAMERA UNDULATE ON THE SCREEN IN FRONT OF MIKE THEY ALSO DANCE IN VIDEO PROJECTION FOR 6000 STUDENTS AT 28 SITES IN THE US MEXICO CANADA BERMUDA AND BRITAIN OCEANOGRAPHER ROBERT D BALLARD WHO FOUND THE SUNKEN TITANIC STANDS ON THE BRIDGE OF THE ROBOT'S MOTHER SHIP FIELDING QUESTIONS LIVE FROM THE FARFLUNG AUDIENCE MR POYMIRO SAYS HIS MATH CLASS WAS ENTRANCED WITH THE DAILY REPORTS THEY DOWNLOADED BY COMPUTER FROM MR STEGER'S EXPEDITION ACROSS ANTARCTICA IN 1990 EACH DAY THE STUDENTS CALCULATED THE WEIGHT OF THE DOG SLEDS THE CONSUMPTION OF THE FOOD SUPPLIES THE FUEL REQUIRED TO MELT SNOW FOR WATER AND OTHER VARIABLES WHEN ONE OF THE DOGS FELL INTO A CREVASSE THE CLASS WORKED OUT THE FORCES NEEDED TO EXTRACT HIM EVEN THE PARENTS WHO HELPED WITH THE HOMEWORK WERE FASCINATED THEY LOVED IT SAYS MR POYMIRO IN HOPKINS MINN HIGH SCHOOL STUDENTS STUDYING AFRICA RECENTLY WATCHED VIDEO FROM AND TALKED LIVE TO A SAFARI OF CYCLISTS IN YAOUNDE CAMEROON TRANSITING AFRICA FROM NORTH TO SOUTH THE CYCLISTS ARE SAMPLING SUNLIGHT AND TAKING SOME PHOTOGRAPHS TO HELP THE US NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CORRECT ITS SATELLITE DATA THEY ALSO REGULARLY SEND DATA ALONG WITH OBSERVATIONS ON AFRICAN CUISINE CUSTOMS AND OTHER TOPICS TO HOPKINS HIGH THE SCHOOL THEN RELAYS THE SHOW TO MORE THAN 30000 STUDENTS AT HUNDREDS OF OTHER SCHOOLS IN THE US AND OVERSEAS CORPORATE BACKERS OF SUCH ADVENTURE LEARNING INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO CRAY RESEARCH INC EDS CORP LANDS' END INC MINNESOTA MINING & MANUFACTURING CO TOYOTA MOTOR CORP AND TURNER BROADCASTING SYSTEM INC EDS SUPPLIES A MAJOR CHUNK OF THE 35 MILLION BUDGET FOR THE JASON PROJECT WHICH LINKS MIKE LARSEN WITH PROF BALLARD AND 750000 STUDENTS FOLLOWING THE JASON FOUNDATION FOR EDUCATION CURRICULUM FOR SIX TO EIGHT WEEKS AT&T SAYS INTERNATIONAL ARCTIC PROJECT'S CURRICULUM LOOKS LIKE A VERY POWERFUL OFFERING FOR ITS LEARNING NETWORK A CURRICULUMBASED SERVICE FOR KINDERGARTEN THROUGH HIGH SCHOOL AT&T IS ALSO WORKING ON ADVENTURELEARNING LINKS FOR OCTOGENARIAN ANTARCTIC DOG SLEDDER NORMAN VAUGHAN AND ROUNDTHEWORLD SAILOR WILLIAM PINKNEY AS WITH MOST SPONSORS THERE'S A CAREFUL MIX OF BUSINESS AND PHILANTHROPY HERE EDS IS THE SYSTEMS COORDINATOR FOR THE HIGHTECH COMMUNICATION LINKS THAT MAKE THE JASON PROJECT WORK EDS SAYS IT BACKS JASON TO SUPPORT SCIENCE EDUCATION BUT THE EXPOSURE IS ALSO CLEARLY BENEFICIAL IN THAT IT DEMONSTRATES WHAT EDS DOES FOR A LIVING A SPOKESWOMAN ADDS CATALOG DIRECT MERCHANT LANDS' END'S BACKING FOR INTERNATIONAL ARCTIC PROJECT TIES IN WITH A LINE OF WILL STEGER CLOTHING IT'S PROMOTING BUT THE ENVIRONMENTAL THEMES MAKE THE PROJECT ESPECIALLY ATTRACTIVE SAYS A SPOKESWOMAN AMONG THE EDUCATION ESTABLISHMENT ADVENTURE LEARNING IS DRAWING A MIXTURE OF HOPEFUL INTEREST AND SKEPTICISM WE DON'T HAVE A LOT OF EVIDENCE YET ON HOW GOOD THIS IS WE DO HAVE A LOT OF ANECDOTAL EVIDENCE THAT THIS IS VERY EXCITING FOR KIDS AND GETS THEM INVOLVED SAYS MARTIN A SIEGEL DIRECTOR OF RESEARCH AT INDIANA UNIVERSITY'S CENTER FOR EXCELLENCE IN EDUCATION BACKED BY A GRANT FROM AT&T THE CENTER IS WORKING WITH THE INTERNATIONAL ARCTIC PROJECT AS PART OF THE MINNEAPOLISBASED CONSORTIUM FOR ADVENTURE LEARNING MOST TEACHERS AND CHILDREN WHO HAVE TRIED ADVENTURE LEARNING SAY THEY LIKE IT I LEARNED ABOUT PLANTS AND WORMS AND DIFFERENT FISH I WOULDN'T MIND BEING AN OCEANOGRAPHER SAYS MIKE LARSEN AFTER HIS TURN AT JASON'S CONTROLS THIS IS TECHNOLOGY ENTHUSES ELAINE FASTENBERG A FIFTHGRADE TEACHER AT CANTIAGUE SCHOOL IN JERICHO NY WHOSE CLASS WATCHED MIKE LIVE FROM AN AUDITORIUM AT WISDOM LANE MIDDLE SCHOOL IN LEVITTOWN NY THIS IS WHERE EDUCATION IS GOING PUPILS AT FORT BENNING'S DEXTER ELEMENTARY SCHOOL IN GEORGIA DOWNLOADED MAP COORDINATES FOR POLAR BEARS BEING TRACKED BY RADIOTELEMETRY IN LAST YEAR'S INTERNATIONAL ARCTIC PROJECT THEN THEY NAMED EACH BEAR AND PLOTTED ITS TRACK ON A CLASSROOM MAP THEY WERE LEARNING GEOGRAPHY MATH AND NATURAL SCIENCE ALL AT ONCE SAYS JERRY CHRISTY A CURRICULUM COORDINATOR FOR FORT BENNING SCHOOLS HE SAYS HE WAS PARTICULARLY IMPRESSED WHEN A FOURTH GRADER REJECTED A MISTRANSMISSION OF A BEAR'S LATITUDE SAYING THAT CAN'T BE RIGHT THAT WOULD PUT HIM IN TENNESSEE BUT EDUCATORS SAY THAT KIND OF SUCCESS DEPENDS MORE ON HOW TEACHERS USE ADVENTURE LEARNING THAN ON WHAT IS BEAMED INTO CLASSROOMS FROM AFAR WE THINK THAT IF WE HAVE THESE GLITZY CURRICULA THAT'S GOING TO SUBSTITUTE FOR WHAT TEACHERS KNOW SAYS RICHARD ELMORE A PROFESSOR AT HARVARD UNIVERSITY'S GRADUATE SCHOOL OF EDUCATION THAT'S A HUGE MISTAKE WE TEND TO UNDERESTIMATE HOW MUCH IT TAKES TO EDUCATE A TEACHER TO MAKE THIS WORK AGREES FORT BENNING'S MR CHRISTY IF ADVENTURE LEARNING IS JUST BEING A VICARIOUS PARTICIPANT ITS VALUE IS LIMITED IF IT ACTS AS A MODEL FOR CREATING PROBLEMSOLVING LEARNING IN YOUR OWN ENVIRONMENT THEN IT'S SOMETHING NEW AND WORTHWHILE NOT EVERYONE WATCHING JASON IN LEVITTOWN RECENTLY WAS THRILLED FIFTH GRADERS FROM THE MEADOW DRIVE SCHOOL IN NEARBY MINEOLA HAD BEEN STUDYING ABOUT JASON FOR SIX WEEKS AND HAD BEEN TOLD THEY WOULD SEE THE ROBOT OPERATING LIVE WHEN A STORM IN THE SEA OF CORTEZ PREVENTED JASON'S LAUNCHING A VIDEOTAPE WAS SUBSTITUTED WE'VE BEEN BUILDING UP TO THIS SINCE JANUARY SAID INES GLICK THEIR TEACHER A LOT OF THE KIDS ARE DISAPPOINTED HER SCHOOL DISTRICT SPENT 8520 ON JASON BUT HER PUPILS DIDN'T GET TO SEE MUCH THEY HAVEN'T SEEN ON VIDEOS LIKE EACH ORGANIZATION OPERATING A PRIMARY INTERACTIVE NETWORK OR PIN SITE WHERE STUDENTS WATCH AND ASK QUESTIONS THE BOARD OF COOPERATIVE EDUCATION SERVICES FOR NEW YORK'S NASSAU COUNTY PAID 60000 TO RECEIVE THE JASON TRANSMISSIONS AND CURRICULAR MATERIALS EACH SCHOOL DISTRICT PAID THE BOARD 40 PER PARTICIPATING STUDENT THE BOARD ALSO HAD SUPPORT AND EQUIPMENT EXPENSES WHILE JASON OFFICIALS BELIEVE THEY REACHED AT LEAST 750000 STUDENTS THIS YEAR UP FROM 500000 A YEAR AGO THE BOSTON SCIENCE MUSEUM A FORMER PIN SITE BALKED AT THE COST WE'RE OUT THIS YEAR FOR FINANCIAL REASONS SAYS JOHN SHANE THE MUSEUM'S VICE PRESIDENT FOR PROGRAMS I THINK IT HAS WORKED QUITE WELL BUT MY PROBLEM IS WITH THE IDEA THAT REALTIME SCIENCE IS A COMEON IN FACT IT'S FREQUENTLY DULL KIDS WHO ARE USED TO COUSTEAU ON TELEVISION COULD BE TURNED OFF 9303170024 930317 CANADIAN NATIONAL AND JB HUNT AGREE TO RAILTRUCKING PACT MONTREAL CANADIAN NATIONAL RAILWAYS AND JB HUNT TRANSPORT SERVICES INC SAID THEY SIGNED A LONGTERM PARTNERSHIP AGREEMENT TO HAUL FREIGHT TRAFFIC BETWEEN THE US AND CANADA CANADIAN NATIONAL CALLED THE RAILTRUCKING ALLIANCE THE FIRST BETWEEN COMPANIES IN THE TWO COUNTRIES THE ARRANGEMENT ENABLES GOVERNMENTOWNED CANADIAN NATIONAL TO STEAL A MARCH ON ITS DOMESTIC RIVAL CANADIAN PACIFIC LTD FOR HUNT THE INTERMODAL PARTNERSHIP IS AN EXTENSION OF THE ALLIANCES IT HAS FORGED WITH SEVEN US RAILROADS IN RECENT YEARS THE CANADIAN SERVICE WHICH BEGINS APRIL 5 WILL ENABLE THE LOWELL ARK TRUCKING COMPANY TO SEND ITS TRAILERS OVER CANADIAN NATIONAL'S CN NORTH AMERICA RAIL LINES FROM MONTREAL AND TORONTO TO CHICAGO FROM THERE THEY COULD BE PICKED UP BY JB HUNT'S US RAIL PARTNERS AND CARRIED TO OTHER RAIL TERMINALS THEN TRUCKED TO FINAL DESTINATIONS THE COMPANIES DECLINED TO PUT A VALUE ON THE AGREEMENT BUT DAN BRAATZ VICE PRESIDENT NORTHERN TERRITORY FOR JB HUNT SAID CANADIAN TRAFFIC ACCOUNTS FOR ABOUT 10 OF THE COMPANY'S TOTAL BUSINESS OR ROUGHLY US100 MILLION A SUBSTANTIAL AMOUNT OF THAT TRAFFIC IS LIKELY TO BE ROUTED OVER CN LINES HE SAID CN AND JB HUNT SAID THEY EXPECT TO BEGIN HAULING CONTAINERS ON DOUBLESTACK TRAINS IN 1994 WHEN CN COMPLETES A PLANNED 200 MILLION CANADIAN DOLLAR US160 MILLION TUNNEL BETWEEN SARNIA ONTARIO AND PORT HURON MICH UNDER THE ST CLAIR RIVER CANADIAN PACIFIC LAST WEEK SAID IT FILED A COMPLAINT CONCERNING THE TUNNEL WITH THE INTERSTATE COMMERCE COMMISSION IN WASHINGTON CITING ITS POTENTIAL EFFECT ON COMPETITION BETWEEN THE TWO CANADIAN RAILROADS' US NETWORKS 9303170023 930317 MCA SETTLES DISPUTE WITH LOCAL RESTAURANT OVER COMPLEX'S NAME UNIVERSAL CITY CALIF MCA INC SAID IT SETTLED A LAWSUIT WHICH HAD COMPLAINED THAT THE COMPANY'S USE OF THE NAME CITYWALK FOR A COMING RETAIL AND ENTERTAINMENT COMPLEX INTERFERED WITH A NEARBY CHINESE RESTAURANT CALLED CITY WOK TERMS OF THE SETTLEMENT WEREN'T DISCLOSED MCA SAID IT NOW COULD USE THE TERM CITYWALK WITH IMPUNITY AS LONG AS IT DIDN'T OPEN A RESTAURANT CALLED CITYWALK AND INDIVIDUALS CLOSE TO THE OTHER SIDE SAID THE RESTAURANT RECEIVED SUBSTANTIAL MONETARY DAMAGES IN SEPTEMBER CITY WOK'S OWNERS SUED FOR 10 MILLION IN DAMAGES THE NEXT MONTH A FEDERAL JUDGE ORDERED MCA TO STOP USING THE TERM CITYWALK AND INSTEAD REFER TO THE DEVELOPMENT AS UNIVERSAL CITYWALK THE RESTAURATEUR HAD SAID HIS PATRONS WERE CONFUSED AND HIS NAME WAS BECOMING DILUTED COMPANY EXECUTIVES AT THE TIME SAID THEY HAD TRIED TO BE SCRUPULOUS ABOUT SAYING UNIVERSAL CITYWALK ANYWAY PARTICULARLY IN PRESS MATERIALS BUT INDIVIDUALS CLOSE TO THE SITUATION SAID SOME SIGNS ON THE PROPERTY USED THE SHORTHAND AND A CONTEMPT OF COURT MOTION HAD BEEN FILED THE PARTIES DIFFER ON WHETHER THIS HASTENED THE SETTLEMENT CITYWALK SITS HIGH ON A HILL ABOVE THE HOLLYWOOD FREEWAY IN MCA'S SPRAWLING COMPLEX WHICH INCLUDES ITS CORPORATE HEADQUARTERS AND MOVIE STUDIO LOT ITS UNIVERSAL STUDIOS TOUR THEME PARK A MUSIC AMPHITHEATER MOVIE THEATER HOTELS AND RESTAURANTS MCA IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO THE 100 MILLION CITYWALK COMPLEX WHICH OPENS IN MAY WILL INCLUDE 36 FACILITES IN 17800 SQUARE FEET INCLUDING STORES A MOTION SIMULATOR ATTRACTION 14 CLASSROOMS AFFILIATED WITH THE UNIVERSITY OF CALIFORNIA IN LOS ANGELES AND SEVERAL RESTAURANTS NONE OF WHICH ARE CHINESE 9303170022 930317 ADVANCED MICRO DEVICES SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SAID THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AGREED TO WITHDRAW A SHAREHOLDER RESOLUTION THAT CALLED FOR THE SEMICONDUCTOR COMPANY'S CHAIRMAN TO BE AN INDEPENDENT DIRECTOR AS PART OF THE AGREEMENT ADVANCED MICRO PROMISED TO SPEED ITS SEARCH FOR AN ADDITIONAL INDEPENDENT DIRECTOR WHOSE PRESENCE WILL ASSURE THAT THE BOARD HAS A MAJORITY OF INDEPENDENT DIRECTORS 9303170021 930317 WHO'S NEWS GEORGIAPACIFIC LISTS A SEPARATION PACKAGE AT OVER 85 MILLION ATLANTA GEORGIAPACIFIC CORP AWARDED A SEPARATION PACKAGE VALUED AT MORE THAN 85 MILLION ON TOP OF NORMAL RETIREMENT BENEFITS TO RONALD P HOGAN WHEN HE DEPARTED AS VICE CHAIRMAN LAST YEAR THE COMPANY DISCLOSED IN A SECURITIES FILING THE PACKAGE INCLUDES A 48 MILLION PAYMENT TO REPLACE GEORGIAPACIFIC SHARES MR HOGAN COULD HAVE RECEIVED UNDER THE COMPANY'S LONGTERM INCENTIVE PLANS HAD HE NOT RETIRED EARLY LAST JULY AT AGE 51 GEORGIAPACIFIC ALSO AGREED TO PAY 28 MILLION TOWARD TAXES ON THAT DISBURSEMENT AND AWARDED MR HOGAN AN ADDITIONAL PAYMENT OF 700000 ROUGHLY EQUAL TO ONE YEAR'S SALARY A GEORGIAPACIFIC SPOKESWOMAN SAID YESTERDAY THAT THE AGREEMENT WAS THE COMPANY'S STANDARD SETTLEMENT ON A MUTUALLY AGREED EARLY RETIREMENT THE COMPANY SAID LAST YEAR THAT MR HOGAN AGREED TO RETIRE EARLY WHEN IT BECAME CLEAR HE WOULDN'T BE NAMED CHIEF EXECUTIVE MR HOGAN DECLINED COMMENT YESTERDAY CITING A NONDISCLOSURE AGREEMENT THAT'S PART OF THE SEPARATION PACKAGE THE SEPARATION AGREEMENT ALSO ALLOWS MR HOGAN TO TAKE A JOB WITH A COMPETING COMPANY AS EARLY AS THIS AUGUST WITHOUT SACRIFICING HIS STANDARD RETIREMENT BENEFITS WHICH INCLUDE 50 OF MONTHLY SALARY STARTING AT AGE 62 MR HOGAN WHO HAD BEEN PRESIDENT OF GEORGIAPACIFIC UNTIL 1991 WOULDN'T COMMENT ON HIS PLANS SEPARATELY GEORGIAPACIFIC CONFIRMED IT IS SEEKING A BUYER FOR MAILWELL ENVELOPE CO SAYING ENVELOPE MANUFACTURING IS A HIGHLY SPECIALIZED BUSINESS THAT DOESN'T FIT WITH THE COMPANY'S FORESTPRODUCTS BUSINESS MAILWELL WHICH HAS ANNUAL REVENUE OF ABOUT 200 MILLION HAS BEEN RUN UNDER BUTLER PAPER CO WHICH GEORGIAPACIFIC HAS AGREED TO SELL TO ALCO STANDARD CORP 9303170020 930317 NATIONSBANK PLANS TO EXPAND IN SECURITIES CRT PURCHASE WOULD LIFT FIRM'S BOND PRESENCE BRING OPTIONS EXPERTISE BY SCOTT MCMURRAY AND MARTHA BRANNIGAN STAFF REPORTERS OF THE WALL STREET JOURNAL NATIONSBANK THE COUNTRY'S FOURTHLARGEST BANK IS EXPANDING ITS REACH IN THE SECURITIES MARKETS BY BUYING CHICAGO RESEARCH & TRADING GROUP LTD A LEADING OPTIONS TRADER AND PRIMARY DEALER IN GOVERNMENT SECURITIES THE PURCHASE IS EXPECTED TO BE ANNOUNCED TODAY IN CHICAGO WHERE CRT IS BASED OFFICIALS FROM BOTH NATIONSBANK AND CRT DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE TRANSACTION DIDN'T DISCLOSE THE PURCHASE PRICE BUT INDICATED THAT IT WOULD MOST LIKELY INCLUDE A SHARE OF TRADING PROFITS IN THE FUTURE FOR CRT PARTNERS CRT IS A LIMITED PARTNERSHIP WITH ABOUT 250 MILLION IN CAPITAL NATIONSBANK'S PLANNED PURCHASE OF CRT IS PART OF ITS STRATEGY OF AGGRESSIVELY EXPANDING AWAY FROM THE INDUSTRY'S TRADITIONAL RELIANCE ON CORPORATE LENDING AND REAL ESTATE LOANS WHERE HUGE LOSSES SEVERELY HOBBLED MANY OF THE NATION'S LEADING BANKS DURING THE PAST FIVE YEARS ALTHOUGH NATIONSBANK'S CHARLOTTE NC BASE IS HUNDREDS OF MILES FROM WALL STREET IT HAS THE LARGEST SECURITIES PORTFOLIO OF ANY BANK ABOUT 25 BILLION AS OF YEAR END WITH UNREALIZED GAINS OF ABOUT 400 MILLION IT HAS BECOME A HEAVYWEIGHT IN THE BOND TRADING BUSINESS ON WALL STREET LARGELY BECAUSE OF ITS PENCHANT FOR BUYING UP LARGE POSITIONS IN A SINGLE TREASURY ISSUE THUS CONTRIBUTING TO SHORTAGES OF THE SECURITIES BOND TRADERS SAY NATIONSBANK WANTS CRT FOR ITS TRADING EXPERTISE IN OPTIONS AND OTHER SOCALLED DERIVATIVE SECURITIES MARKETS AROUND THE WORLD AND CRT'S PRIMARY DEALER NEW YORKBASED CRT GOVERNMENT SECURITIES LTD TRADES DIRECTLY WITH THE FEDERAL RESERVE BANK OF NEW YORK WHICH WOULD BOOST NATIONSBANK'S PRESENCE AND PRESTIGE IN THAT MARKET TRADERS SAY CRT WANTS TO BECOME PART OF NATIONSBANK FOR ITS TOPDRAWER CREDIT RATING WHICH TRADING COMPANIES NEED IN ORDER TO DEAL IN LARGELY UNREGULATED OFFEXCHANGE MARKETS IN THE US AND ABROAD INCREASINGLY SOPHISTICATED COMPETITION ON EXCHANGES HAS NARROWED PROFITS CONSIDERABLY WHILE THE MORE OPEN OFFEXCHANGE TRADING ARENA PROVIDES MORE OPPORTUNITIES FOR PROFITS FOR THAT REASON CRT HAD PLANNED IN THE PAST SEVERAL YEARS TO FORM A TRADING ALLIANCE WITH JAPAN'S MITSUBISHI TRUST BANK BUT THE US FEDERAL RESERVE CITING JAPAN'S RELUCTANCE TO OFFER OPEN ACCESS TO ITS FINANCIAL MARKETS HAS WITHHELD ITS APPROVAL OF THE MITSUBISHI ALLIANCE ONE OF CRT'S BIGGEST OPTIONS TRADING RIVALS IN CHICAGO O'CONNOR & ASSOCIATES HAS BEEN AFFILIATED WITH SWISS BANK CORP SINCE DECEMBER 1990 IN AN EFFORT TO HELP FINANCE ITS INTEREST RATE AND CURRENCY OPTIONS TRADING AN OPTIONS TRADER IN CHICAGO WHO ASKED NOT TO BE NAMED SAID THAT CRT ALSO FAVORED NATIONSBANK FOR ITS EXTREMELY AGGRESSIVE APPROACH TO TRADING COMPARED WITH THE MORE CAUTIOUS APPROACH TAKEN BY MANY BANKS TESTING SECURITIES TRADING WATERS NATIONSBANK HAS A FUTURES TRADING OPERATION THAT IS ACTIVE PRIMARILY IN HEDGING AGAINST LOSSES ON THE BANK'S OWN TRADES NATIONSBANK HAS BEEN AGGRESSIVE IN BOLSTERING ITS PRESENCE IN THE RETAIL SECURITIES BUSINESS AS WELL IN OCTOBER NATIONSBANK FORMED A JOINT VENTURE WITH WHAT IS NOW DEAN WITTER DISCOVER & CO TO MARKET AN ARRAY OF SECURITIES AND SERVICES AT BANK BRANCHES THE UNUSUAL ALLIANCE WILL JOIN SOME 200 NATIONSBANK INVESTMENT OFFICERS WITH 200 MORE FROM DEAN WITTER TO SELL THE PROPRIETARY PRODUCTS OF THOSE ENTITIES AND A HOST OF OTHER INVESTMENTS NATIONSBANK WHICH HAS OPERATIONS IN NINE STATES AND THE DISTRICT OF COLUMBIA HAS BEEN ON A NONSTOP ACQUISITION TEAR JUST LAST MONTH THE BANK WHICH WAS ITSELF CREATED FROM THE ACQUISITION OF C&S/SOVRAN CORP BY NCNB CORP AT THE END OF 1991 EXERCISED AN OPTION TO BUY MNC FINANCIAL INC THE LARGEST BANK HOLDING COMPANY IN MARYLAND FOR 136 BILLION THE MOVE GAVE NATIONSBANK A DOMINANT POSITION IN MARYLAND AND WASHINGTON DC AND ROUNDED OUT ITS EXISTING NO 1 POSITION IN VIRGINIA THE BANK ALSO RECENTLY ACQUIRED MOST OF THE ASSETS OF CHRYSLER CORP'S CONSUMERFINANCE UNIT CHRYSLER FIRST INC WITH ASSETS OF ABOUT 2 BILLION AND 175 OFFICES IN 32 STATES 9303170018 930317 FOREIGN EXCHANGE POUND YEN RALLIES OVERSHADOW DOLLAR WHICH SQUEEZES GAINS FROM OTHER UNITS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RALLIES BY THE POUND AND THE YEN OVERSHADOWED ACTION BY THE DOLLAR TUESDAY BUT THE US CURRENCY MANAGED TO EKE OUT GAINS AGAINST OTHER CURRENCIES STERLING SURGED AS TUESDAY'S UK BUDGET STATEMENT ALLAYED FEARS OF AN IMMINENT CUT IN BRITISH INTEREST RATES DEALERS SAID AS FOR THE YEN DEALERS SAID A REPORT LATER DENIED SUGGESTED THAT THE GROUP OF SEVEN HIGHLY INDUSTRIALIZED NATIONS WANTED A STRONGER YEN AS A MEANS TO REDUCE JAPAN'S TRADE SURPLUS THE REPORT SPOOKED A MARKET THAT HAD BEEN BETTING ON A SLIDE IN THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16640 MARKS UP A BIT FROM 16630 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 117 YEN OFF FROM 11860 YEN STERLING WAS TRADING AT 14480 UP FROM 14348 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16640 MARKS AND AT 11705 YEN STERLING IS EXTREMELY STRONG ON THE BACK OF THE BUDGET ANNOUNCEMENT SAID ROBERT RYAN MANAGER OF CORPORATE FOREIGN EXCHANGE AT BANK OF NEW YORK WITH THE BRITISH ECONOMY STILL REELING HE SAID INVESTORS HAD EXPECTED CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT'S BUDGET TO INCLUDE A CUT IN RATES TO REVIVE IT INSTEAD MR LAMONT INTRODUCED A PACKAGE OF MEASURES AIMED AT TIGHTENING FISCAL POLICY BUT SAID THEY WOULDN'T TAKE EFFECT UNTIL 1994 SO AS TO EASE THEIR EFFECT ON THE WEAK ECONOMY HE SAID CURRENT INTEREST RATES BASE LENDING RATES NOW ARE AT 6 ARE CONSISTENT WITH LOW INFLATION THE MARKET TOOK IT AS MEANING NO IMMINENT EASE SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP AS A RESULT DEALERS SAID INVESTORS WHO HAD BET ON A FALL IN STERLING WERE FORCED TO BUY POUNDS TUESDAY TO COVER THEIR EXPOSURE DEALERS NOTED THAT THE STERLING BUYING STARTED EVEN BEFORE MR LAMONT BEGAN SPEAKING AS PLAYERS REVISED EXPECTATIONS AHEAD OF THE STATEMENT EVEN MODERATE PROFITTAKING AFTER THE SPEECH RAPIDLY GAVE WAY TO FURTHER BUYING OF POUNDS PEOPLE USED IT AS AN OPPORTUNITY TO BUY STERLING AND SELL MARKS SAID MR RYAN LATE TUESDAY IN NEW YORK THE POUND WAS QUOTED AT 24096 MARKS ABOVE 23857 MARKS TUESDAY BUT DEALERS WERE RELUCTANT TO SOUND THE ALLCLEAR ON BRITISH INTEREST RATES IF GERMANY'S CENTRAL BANK FULFILLS MARKET EXPECTATIONS BY CUTTING ITS OFFICIAL INTEREST RATES AT ITS MEETING THURSDAY DEALERS SAID BRITISH RATES ARE LIKELY TO FOLLOW LOWER GERMAN RATES WOULD WEAKEN THE MARK DEALERS SAID REDUCING THE DAMAGE STERLING MIGHT SUFFER AFTER A CUT IN UK RATES THE YEN MEANWHILE VAULTED HIGHER TUESDAY AS INVESTORS SCRAMBLED TO UNLOAD DOLLARS AFTER MONDAY'S RALLY IN THE DOLLAR TURNED RAPIDLY INTO A ROUT IT JUST CAME OFF LIKE A ROCK SAID ANN FINALY A TRADER AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK LATE MONDAY THE DOLLAR BROKE THROUGH KEY TECHNICAL RESISTANCE AROUND 11850 YEN LEADING INVESTORS TO EXPECT FURTHER GAINS SHE SAID BUT A JAPANESE NEWS REPORT EARLY TUESDAY QUOTING A LONDON MONETARY OFFICIAL AS SAYING THE G7 WANTED THE YEN TO FIRM TOWARD 105110 YEN PER DOLLAR TO REDUCE JAPAN'S HUGE TRADE SURPLUS KNOCKED THE DOLLAR BACK YOSHIRO HAYASHI JAPAN'S FINANCE MINISTER DENIED THE REPORT BUT WHEN HIS STATEMENT APPARENTLY FAILED TO BUOY THE US CURRENCY MS FINALY SAID INVESTORS CONCLUDED THE TIDE WAS TURNING AND RACED TO CATCH UP WITH THE RISING YEN THAT WAS THE END OF IT MS FINALY SAID JAPANESE EXPORTERS WHO NEED TO CONVERT THEIR DOLLAR EARNINGS INTO YEN WERE SURPRISED BY THE YEN'S RISE AND UNLOADED THEIR DOLLAR HOLDINGS SHE ADDED DEALERS SAID LATE PROFIT TAKING HELPED THE DOLLAR RECOVER FROM ITS LOWS BUT NOTED THAT THE YEN ISN'T LIKELY TO GIVE UP MORE GROUND 9303170017 930317 MARKETING & MEDIA TIME WARNER'S SUTTON GETS DEVELOPMENT ROLE NEW YORK KELSO SUTTON PRESIDENT OF BOOK PUBLISHING AT TIME WARNER INC WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THE TIME INC UNIT WHICH INCLUDES BOTH MAGAZINES AND BOOK PUBLISHING MR SUTTON'S JOB IS BEING ELIMINATED THE COMPANY SAID THE UNITS THAT REPORTED TO HIM INCLUDING BOOKOFTHEMONTH CLUB TIMELIFE INC WARNER BOOKS AND LITTLE BROWN & CO WILL NOW REPORT TO REGINALD K BRACK JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TIME INC AND DON LOGAN PRESIDENT AND CHIEF OPERATING OFFICER THE 54YEAROLD MR SUTTON WHO AT ONE TIME HEADED TIME'S ENTIRE MAGAZINE OPERATION HAS BEEN INCREASINGLY REMOVED FROM OPERATING RESPONSIBILITIES AND NOW HAS NONE HE WILL WORK WITH MESSRS BRACK AND LOGAN ON SOME AREAS OF DEVELOPMENT INCLUDING GETTING TIME INC'S PRODUCTS AND SERVICES ON THE NEW ELECTRONIC SUPERHIGHWAY THE COMPANY SAID THE SUPERHIGHWAY ANNOUNCED BY TIME WARNER IN LATE JANUARY IS A COMPUTERIZED NETWORK THAT WOULD DELIVER MOVIES HOME SHOPPING AND OTHER SERVICES INTO HOMES BOOKS AND MAGAZINES COULD POTENTIALLY BE DELIVERED ON THE SAME NETWORK HE ALSO WILL HELP TO BROADEN TIME INC'S INTERNATIONAL EXPANSION TIME INC SAID ALL PLANTS PLS LOCALLY KNIFE OUT DUPED POINT 9303170016 930317 WHAT'S NEWS WORLDWIDE YELTSIN REEMERGED TO BLAST PARLIAMENT FOR VOTING TO REDUCE HIS AUTHORITY IN HIS FIRST PUBLIC APPEARANCE SINCE WALKING OUT OF THE LEGISLATIVE SESSION THAT STRIPPED HIM OF MANY OF HIS POWERS LAST WEEK THE RUSSIAN LEADER HINTED HE MIGHT FIGHT BACK BY IMPOSING PRESIDENTIAL RULE AND DISBANDING THE LEGISLATURE BUT HE SAID HE WOULDN'T MAKE HEADLONG DECISIONS YELTSIN ACCUSED THE CONGRESS OF PEOPLE'S DEPUTIES ELECTED IN THE GORBACHEV ERA OF ATTEMPTING TO DERAIL HIS REFORMS AND RESTORE COMMUNIST RULE YELTSIN WHO MADE HIS REMARKS FOLLOWING A MEETING IN MOSCOW WITH FRENCH PRESIDENT MITTERRAND ONCE AGAIN APPEALED TO THE WEST FOR FINANCIAL AID A BOMB EXPLODED IN CALCUTTA KILLING AT LEAST 50 PEOPLE IN A MIDDLECLASS TRADE AND RESIDENTIAL AREA OF THE INDIAN CITY CALLED BOWBAZAAR THE TOLL IS EXPECTED TO RISE BECAUSE BODIES WERE STILL BEING PULLED FROM TWO APARTMENT BUILDINGS THAT COLLAPSED A US TEAM IS IN BOMBAY INVESTIGATING BOMBINGS THAT KILLED 300 THERE LAST WEEK CLINTON REJECTED A CALL BY OUSTED HAITIAN PRESIDENT ARISTIDE FOR THE US TO SET A DATE BY WHICH HAITI'S MILITARY RULERS MUST PERMIT HIS RETURN TO OFFICE CLINTON FOLLOWING A WHITE HOUSE MEETING WITH ARISTIDE SAID HE WILL SEND A SPECIAL ENVOY TO PORTAUPRINCE TO SEEK THE RESTORATION OF DEMOCRACY AND WARNED STRONGER MEASURES MIGHT BE TAKEN A UN AID CONVOY WAS STALLED AT THE SERBIAN BORDER AS BOSNIAN SERB AND UN OFFICIALS WRANGLED OVER WHETHER AN ARMED ESCORT COULD ACCOMPANY THE TRUCKS BOSNIAN SERB LEADERS HAD EARLIER PROMISED TO PERMIT AID TO REACH SREBRENICA WHICH IS SWOLLEN WITH THOUSANDS OF REFUGEES FLEEING A SERB ADVANCE THROUGH A NEARBY MUSLIM ENCLAVE ISRAEL'S PRIME MINISTER CUT SHORT A VISIT TO THE US BECAUSE OF RISING VIOLENCE IN THE OCCUPIED TERRITORIES ISRAELI TROOPS KILLED TWO PALESTINIANS AND WOUNDED DOZENS DURING RIOTING IN A GAZA STRIP REFUGEE CAMP IN THE WEST BANK JEWISH SETTLERS SMASHED CARS IN SEVERAL ARAB VILLAGES IN RETALIATION FOR THE DEATHS OF TWO SETTLERS STRUCK BY A CAR THREE SUSPECTS FLED THE US WITHIN 48 HOURS OF THE FIRST ARREST IN THE FEB 26 BOMBING OF THE WORLD TRADE CENTER IN NEW YORK INVESTIGATORS SAID PHOTOS OF THE SUSPECTS WERE IDENTIFIED BY AIRLINE EMPLOYEES AS THREE MEN WHO REQUESTED AN IMMEDIATE FLIGHT TO ANYWHERE OUT OF NORTH AMERICA THE INVESTIGATORS SAID GEORGIAN TROOPS BATTLED ABKHAZIAN REBELS FOR CONTROL OF THE BLACK SEA CITY OF SUKHUMI AND THE MILITARY COMMANDS FOR BOTH SIDES SAID HUNDREDS WERE KILLED OR INJURED IN THE FIGHTING FOR THE CAPITAL OF THE BREAKAWAY PROVINCE GEORGIAN PRESIDENT SHEVARDNADZE ACCUSED RUSSIA OF BACKING THE REBELS BUT MOSCOW DENIED THE CHARGE A FIRE AT A CHICAGO HOTEL KILLED AT LEAST 14 PEOPLE INCLUDING THREE WHO JUMPED TO THEIR DEATHS TRYING TO ESCAPE FLAMES AND SMOKE AN ADDITIONAL 20 OF THE ESTIMATED 130 PEOPLE IN THE FOURSTORY RESIDENTIAL HOTEL AT THE TIME WERE INJURED A FIRE DEPARTMENT SPOKESMAN SAID THE FIRE WHICH SPREAD UP TWO STAIRWELLS IN THE BUILDING MAY HAVE BEEN SET ADULT SMOKERS WHO QUIT SHARPLY CUT THEIR RISK OF DYING OF LUNG CANCER A STUDY PUBLISHED IN THE JOURNAL OF THE NATIONAL CANCER INSTITUTE CONFIRMS BUT THE RISK BEGINS TO RISE AGAIN AT 75 FOR THOSE WHO WAIT UNTIL 50 TO QUIT THE STUDY FOUND EXSMOKERS' LUNGCANCER RISK NEVER DROPS BACK TO THAT OF THOSE WHO NEVER SMOKED SOMALI MILITIAS BATTLED IN KISMAYU AND A WARLORD KNOWN AS GEN MORGAN WAS SAID BY A MOGADISHU RADIO STATION TO HAVE WRESTED CONTROL OF THE PORT FROM A RIVAL CLAN SEPARATELY A FORMER PRIME MINISTER TOLD A UNSPONSORED PEACE CONFERENCE IT WAS UNLIKELY THAT THE NORTH AND SOUTH OF SOMALIA COULD BE REUNITED UNDER ONE GOVERNMENT ITALY'S CORRUPTION SCANDAL CLAIMED ANOTHER POLITICAL CAREER AS THE LEADER OF THE LIBERAL PARTY RESIGNED AFTER LEARNING HE WAS UNDER INVESTIGATION FOR CORRUPTION THE DEPARTURE FURTHER WEAKENS ITALY'S FOURPARTY GOVERNING COALITION A PARLIAMENTARY DEBATE ON CLEANING UP THE POLITICAL SYSTEM ENDED IN A BRAWL IN ROME SOUTH KOREA'S DEFENSE MINISTER TOLD A PARLIAMENTARY PANEL THAT NORTH KOREA MAY HAVE REACHED THE FINAL STAGES OF DEVELOPING NUCLEAR WEAPONS PRESIDENT KIM YOUNG SAM URGED PYONGYANG TO RECONSIDER ITS DECISION TO WITHDRAW FROM A NUCLEARCONTROL TREATY 9303170015 930317 MARKETING & MEDIA FREEDOM FORUM HEADED BY GANNETT'S EXCHAIRMAN IS BEING INVESTIGATED BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FREEDOM FORUM WHOSE CHAIRMAN IS FORMER GANNETT CO CHAIRMAN ALLEN H NEUHARTH IS UNDER INVESTIGATION FOR POSSIBLE MISSPENDING OF FUNDS TWO YEARS AFTER IT SOLD ITS 10 STAKE IN GANNETT BACK TO THE MEDIA COMPANY FOR 670 MILLION THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE CONFIRMED YESTERDAY IT IS INVESTIGATING THE CHARITABLE FOUNDATION WHICH PROMOTES FREE SPEECH AND MEDIA CAUSES AND WAS KNOWN AS THE GANNETT FOUNDATION UNTIL MR NEUHARTH FORMALLY SEVERED ITS TIES TO THE COMPANY WITH THE STOCK SALE IN 1991 IN APRIL 1991 WHEN GANNETT BOUGHT BACK ITS STOCK IT ALSO TOOK BACK RIGHTS TO THE GANNETT FOUNDATION NAME AT THAT POINT MR NEUHARTH'S FOUNDATION ENDED ANY CONNECTION WITH GANNETT CO WHILE THE ATTORNEY GENERAL'S OFFICE GAVE SCANT DETAILS ABOUT THE INVESTIGATION THE PROBE IS BELIEVED TO FOCUS ON THE FOUNDATION'S SPENDING ON PROGRAMS AS WELL AS ITS INTERNAL OPERATIONS AND OVERALL EXPENSES INCLUDING EXPENSES FOR BOARD MEETINGS ALTHOUGH THE FREEDOM FORUM IS BASED IN ARLINGTON VA IT IS INCORPORATED IN NEW YORK STATE WHERE IT MUST MEET CERTAIN LEGAL REQUIREMENTS FOR CHARITABLE SPENDING TO RETAIN ITS TAXEXEMPT STATUS IT MUST MEET FEDERAL REQUIREMENTS BY PAYING OUT THE EQUIVALENT OF 5 OF ITS ASSETS ANNUALLY CHARITIES BUREAU LESLIE GERSING SPOKESWOMAN FOR THE STATE ATTORNEY GENERAL'S OFFICE SAID THAT AMONG THE ISSUES BEING LOOKED AT WAS WHETHER CERTAIN EXPENDITURES WERE EXCESSIVE OR IMPRUDENT THE INVESTIGATION IS BEING CONDUCTED BY THE OFFICE'S CHARITIES BUREAU WHICH HAS JURISDICTION OVER NOTFORPROFIT AND TAXEXEMPT CHARITIES AND FOUNDATIONS AS CHAIRMAN MR NEUHARTH HAS MOVED THE FOUNDATION FROM MOSTLY SMALLSCALE COMMUNITY GRANTS TO FLASHIER GLOBALLY ORIENTED PROGRAMS INVOLVING ISSUES OF THE MEDIA AND FREE SPEECH NOW WITH MORE THAN 700 MILLION IN ASSETS IT RANKS AMONG THE 20 LARGEST FOUNDATIONS IN THE US IT RECENTLY SENT CONSULTANTS TO HELP EASTERN EUROPEAN NEWSPAPERS PLANS TO PUT 12 MILLION INTO A NEWSEUM TO ENSHRINE THE NEWS AND NEWSPAPERS AND FORMED A FIRST AMENDMENT CENTER AT VANDERBILT UNIVERSITY IN LATE 1991 BUT THE FREEDOM FORUM HAS COME UNDER FIRE IN THE PAST FOR THE RELATIVELY HIGH PAY FOR MR NEUHARTH AND HIS BOARD AS WELL AS FOR LAVISH SPENDING ON A LUXURIOUSLY APPOINTED HEADQUARTERS IN ARLINGTON VA THOUGH IN RETIREMENT FROM GANNETT MR NEUHARTH HAS MADE THE FOUNDATION HIS FULLTIME JOB AND HAS USED A STRONG HAND IN DIRECTING IT HE EARNED ABOUT 130000 LAST FISCAL YEAR FROM A STIPEND AND BOARD MEETING FEES ACTIVE FOUNDATION DIRECTORS WHO ATTEND THE FORUM'S SIX MEETINGS ANNUALLY AT VARIOUS LOCATIONS AROUND THE COUNTRY COLLECT ABOUT 50000 FOR THEIR SERVICES CHARLES L OVERBY THE FORUM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND MR NEUHARTH'S SPOKESMAN SAID YESTERDAY THAT STATE INVESTIGATORS HAD FIRST CONTACTED THE FORUM 14 MONTHS AGO ASKING FOR TAX RETURNS BOARD EXPENSES AND MEETING ITINERARIES AND OTHER DOCUMENTS THIS WEEK MR OVERBY SAID THE FORUM RECEIVED ANOTHER REQUEST FROM THE ATTORNEY GENERAL'S OFFICE FOR MORE DOCUMENTATION THERE HAVE BEEN NO EXCESSIVE OR IMPRUDENT EXPENDITURES AT FREEDOM FORUM AND WE'VE FOLLOWED ALL THE TAX LAWS MR OVERBY SAID MR OVERBY SAID HE IS UNCLEAR JUST WHAT THE INVESTIGATION IS ABOUT BUT ADDED THAT LOTS OF THE INQUIRIES WERE RELATED TO THE THENGANNETT FOUNDATION'S MOVE FROM ROCHESTER NY WHERE IT WAS CREATED IN 1935 BY COMPANY FOUNDER FRANK GANNETT TO ARLINGTON IN 1989 WE ARE NOW A LARGE AND VISIBLE FOUNDATION AND WE HAVE GLOBAL PRIORITIES THEY WERE PROBABLY REACTING TO STORIES IN THE PRESS WE EXPECT THIS KIND OF ATTENTION 9303170014 930317 ESSEX FINANCIAL NOTES VIRGINIA BEACH VA ESSEX FINANCIAL PARTNERS LIMITED PARTNERSHIP SAID HOLDERS OF MORE THAN 95 OF ITS 234 MILLION OF 11 NOTES ACCEPTED PAINEWEBBER CAPITAL CORP'S OFFER TO PURCHASE THEM AS REPORTED THE PURCHASE OFFER FOR THE NOTES WHICH WERE FACING DEFAULT IS PART OF A RESTRUCTURING EFFORT THAT INCLUDES THE MERGER OF ESSEX'S THREE SAVINGS BANK SUBSIDIARIES PAINEWEBBER CAPITAL A UNIT OF PAINEWEBBER GROUP INC HAS EXTENDED THE OFFER UNTIL MARCH 29 FROM MARCH 8 AN ESSEX OFFICIAL SAID NEGOTIATIONS ARE CONTINUING ON THE RESTRUCTURING BUT HE SAID HE HOPES THE MERGER AND THE NOTE PURCHASE WOULD BE COMPLETE BY APRIL 9303170013 930317 COMMODITIES WHEAT PRICES JUMP ON SPECULATION ABOUT AID TO RUSSIA AND CONCERN OVER SHORTAGE IN SUPPLY BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US WHEAT PRICES JUMPED AMID CONTINUING SPECULATION ABOUT FOOD AID TO RUSSIA AND GROWING CONCERN ABOUT A SHORTAGE OF WHEAT TO SATISFY CONTRACTS AT THE CHICAGO BOARD OF TRADE IN TRADING AT THE EXCHANGE THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE 725 CENTS A BUSHEL TO SETTLE AT 381 A BUSHEL A CBOT SPOKESMAN WOULDN'T COMMENT ON REPORTS THAT EXCHANGE OFFICIALS ARE JAWBONING LARGE TRADERS IN THE WHEAT CONTRACT FOR MARCH DELIVERY TO REDUCE THEIR POSITIONS THE EXCHANGE HOWEVER USUALLY KEEPS A CLOSE WATCH ON THE MARCH WHEAT CONTRACT THIS TIME OF THE YEAR BECAUSE IT IS PARTICULARLY VULNERABLE TO RUMORS OF A SQUEEZE ATTEMPT WHEAT STOCKPILES ARE AT THEIR LOWEST POINT BEFORE HARVESTING OF THE FIRST CROP OF THE US SEASON BEGINS IN MAY THE SUPPLY OF WHEAT FUTURES TRADERS CAN USE TO SATISFY THEIR OBLIGATIONS AT TE CBOT OFTEN GROWS UNCOMFORTABLY TIGHT AROUND NOW ONE CONCERN IS THAT THE THIN SUPPLY MAKES IT EASIER FOR A TRADER TO ATTEMPT TO BUY CONTROL OF THE WHEAT STORED IN CBOTAPPROVED WAREHOUSES THAT COULD CAUSE PRICES TO GYRATE AS FUTURES TRADERS SCRAMBLE TO FIND ENOUGH WHEAT TO FULFILL THEIR DELIVERY OBLIGATIONS AT THE EXCHANGE THE WHEAT CONTRACTS TRADED AT THE CBOT ARE FOR THE SOFT RED WINTER VARIETY GROWN IN THE MIDWEST THE AVAILABILITY OF WHEAT IN EXCHANGEAPPROVED WAREHOUSES IN CHICAGO AND TOLEDO OHIO IS UNUSUALLY TIGHT EVEN FOR THIS TIME OF THE YEAR BECAUSE A WET AND COOL GROWING SEASON IN 1992 RESULTED IN A POORER QUALITY CROP A CBOT SPOKESMAN SAID ABOUT 27 MILLION BUSHELS OF WHEAT ARE IN DELIVERABLE POSITION IN CHICAGO AND TOLEDO THE NUMBER OF MARCH CONTRACTS OUTSTANDING COVER ABOUT 11 MILLION BUSHELS OF WHEAT FUTURES TRADERS USUALLY PREFER TO EVEN UP THEIR POSITIONS ON PAPER INSTEAD OF TAKING PHYSICAL DELIVERY OF THE UNDERLYING COMMODITY WHEAT PRICES WERE ALSO SUPPORTED BY SIGNS THAT MORE US GRAIN MIGHT BE MOVING TO RUSSIA WHICH HASN'T IMPORTED A SIGNIFICANT AMOUNT OF US CROPS SINCE IT BEGAN DEFAULTING ON USGUARANTEED GRAIN LOANS IN NOVEMBER THE SPECULATION WAS FUELED YESTERDAY WHEN AGRICULTURE SECRETARY MIKE ESPY SAID THE CLINTON ADMINISTRATION IS WORKING TO KICKSTART US FARM EXPORTS TO MOSCOW THE AGRICULTURE DEPARTMENT ON FRIDAY ANNOUNCED A DONATION OF WHEAT AND RICE TO RUSSIA BUT TRADERS INTERPRETED MR ESPY'S COMMENTS TO MEAN SOMETHING MORE IN THE WAKE OF WIRE REPORTS OF A RUSSIAN OFFICIAL CLAIMING THE WHITE HOUSE AND MOSCOW HAVE SOME SORT OF PACT TO RESTART US GRAIN EXPORTS TO RUSSIA SOME GRAIN TRADERS ARE SPECULATING THAT THE CLINTON ADMINISTRATION IS CONSIDERING HOW TO LET MOSCOW PURCHASE SOME OF THE US GRAIN SHIPMENTS THAT WERE SUSPENDED IN NOVEMBER WHEN RUSSIA BEGAN MISSING LOAN PAYMENTS ACCORDING TO RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO RUSSIA WAS ARRANGING TO IMPORT ABOUT 11 MILLION METRIC TONS OF US WHEAT AND 11 MILLION METRIC TONS OF US CORN WHEN IT WAS SUSPENDED FROM THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM A METRIC TON OF WHEAT EQUALS 367 BUSHELS AND A METRIC TON OF CORN IS 394 BUSHELS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY MARKET PARTICIPANTS STAYED SLIGHTLY BEARISH AND NUDGED PRICES DOWN IN ANTICIPATION OF AN INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE CONTRACTS FOR CRUDE OIL DELIVERY IN APRIL FELL THREE CENTS A BARREL TO FINISH AT 2013 TRADERS BROKERS AND ANALYSTS TOOK SOLACE IN THE CONTINUED HOVERING OF PRICES ABOVE THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL BUT FUTURES PRICES CONTINUED TO FADE FOLLOWING A BRIEF BLIZZARDRELATED RALLY THAT OCCURRED IN MONDAY TRADING ON THE NEW YORK MERCANTILE EXCHANGE AS THE POSTBLIZZARD CHILL BEGAN TO LIFT IN THE NORTHEAST US NATURALGAS PRICES WEAKENED FUTURES PRICES FOR DELIVERY IN APRIL FELL 52 CENTS PER MILLION BRITISH THERMAL UNITS TO CLOSE AT 1913 THE DROP WIPED OUT THE GAS PRICE GAIN FROM MONDAY TRADING A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS 9303170011 930317 THREE FLED US IN NEW YORK BLAST INVESTIGATORS SAY BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THREE MEN SUSPECTED OF INVOLVEMENT IN THE FEB 26 BOMBING OF THE WORLD TRADE CENTER HAVE FLED THE US INVESTIGATORS SAID THE THREE WERE ASSOCIATES OF MOHAMMED SALAMEH A 25YEAROLD PALESTINIAN WHO HAD BEEN LIVING IN JERSEY CITY NJ BITS OF THE RENTAL VAN THAT CARRIED THE BOMB INTO THE TRADE CENTER GARAGE WERE RECOVERED FROM THE RUBBLE AND TRACED BACK TO MR SALAMEH WHO HAD RENTED THE VEHICLE MR SALAMEH WAS ARRESTED MARCH 4 WITHIN 48 HOURS AFTER HIS ARREST ONE INVESTIGATOR SAID THREE ARABIC MEN WENT TO KENNEDY INTERNATIONAL AIRPORT IN NEW YORK AND USING FALSE PASSPORTS TRIED TO BUY SEATS ON A PLANE TO A EUROPEAN CITY WHEN THEY FOUND THAT THE FLIGHT WAS FILLED THE INVESTIGATOR SAID THEY ASKED THE AIRLINE RESERVATION CLERK FOR ANY FLIGHT THAT WOULD GET THEM OFF THE NORTH AMERICAN CONTINENT ACCORDING TO ANOTHER INVESTIGATOR THE THREE MEN TOOK A FLIGHT WHOSE DESTINATION WAS SOUTH AFRICA IT WASN'T KNOWN WHETHER THE FLIGHT HAD INTERMEDIATE STOPS OR WHETHER THE THREE MAY HAVE GOT OFF THE PLANE BEFORE ITS FINAL STOP AFTER FEDERAL BUREAU OF INVESTIGATION AGENTS ARRESTED MR SALAMEH THEY DETERMINED WHO HIS ASSOCIATES WERE AND THEN TOOK PHOTOGRAPHS OF THEM TO AIRPORTS THE AIRLINE RESERVATIONS PEOPLE RECOGNIZED THE PHOTOGRAPHS REMEMBERING THE MEN PARTICULARLY BECAUSE OF THEIR UNUSUAL DESIRE TO GET THE NEXT FLIGHT LEAVING THE CONTINENT THE INVESTIGATOR SAID THE NAME OF THE AIRLINE USED COULDN'T BE LEARNED ONE OF THE THREE MEN WHO INVESTIGATORS ASSERT FLED IS MAHMUD ABOUHALIMA SAID TO BE A NEW YORK TAXI DRIVER WHO ALSO WAS A DRIVER FOR SHEIK OMAR ABDELRAHMAN THE SHEIK ALLEGEDLY LIVING IN THE US ILLEGALLY IS SUBJECT TO DEPORTATION PROCEEDINGS INVESTIGATORS SUSPECT HIS FIERY FUNDAMENTALIST RHETORIC MAY HAVE HELPED INSPIRE THE BOMBING ALTHOUGH NO CHARGES HAVE BEEN BROUGHT AGAINST HIM THE NAMES OF THE TWO OTHERS SAID TO HAVE FLED COULDN'T BE LEARNED IF THE THREE HAVE FLED THE CHANCES OF US LAWENFORCMENT AUTHORITIES EVER ARRESTING THEM ARE REMOTE I DON'T KNOW HOW WE'LL EVER GET THEM BACK ONE INVESTIGATOR SAID TWO OTHER MEN HAVE BEEN ARRESTED NIDAL AYYAD A CHEMICAL ENGINEER WHO HAD BEEN WORKING AT ALLIEDSIGNAL INC IN NEW JERSEY WAS CHARGED WITH AIDING IN THE ATTACK IBRAHIM ELGABROWNY A BROOKLYN RESIDENT WAS CHARGED WITH HITTING AN FBI AGENT DURING A SEARCH OF HIS APARTMENT AND IS ALSO A SUSPECT IN THE BOMBING FBI AGENTS TRACING MONEY SENT TO THE ALLEGED BOMBERS HAVE FOUND TENS OF THOUSANDS OF DOLLARS HAD BEEN TRANSFERRED TO NEW JERSEY BANK ACCOUNTS FROM THREE NATIONS AN INVESTIGATOR SAID TWO OF THE COUNTRIES ARE IN EUROPE AND THE THIRD IS INDIA BUT THUS FAR THE INVESTIGATION INDICATES THOSE COUNTRIES WERE ONLY PASSTHROUGHS OR CONDUITS FOR THE MONEY THE INVESTIGATOR SAID THE SOURCE OF THE FUNDS WHICH INVESTIGATORS THINK WERE USED TO BUY BOMB MATERIALS AND FOR OTHER PURPOSES IS STILL TO BE DETERMINED 9303170010 930317 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9303170009 930317 WHO'S NEWS METROPOLITAN FINANCIAL CORP METROPOLITAN FINANCIAL CORP MINNEAPOLIS STEVEN B DEWALD 31YEAROLD CHIEF FINANCIAL OFFICER WAS NAMED AN EXECUTIVE VICE PRESIDENT AND WAS APPOINTED TO THE OFFICE OF THE CHAIRMAN AT THIS FINANCIAL SERVICES HOLDING COMPANY HE REMAINS CHIEF FINANCIAL OFFICER 9303170008 930317 WHO'S NEWS VERTEX PHARMACEUTICALS INC VERTEX PHARMACEUTICALS INC CAMBRIDGE MASS ROGER W BRIMBLECOMBE 63 YEARS OLD WAS NAMED A DIRECTOR OF THIS DRUG COMPANY EXPANDING THE BOARD TO FIVE MEMBERS HE IS CHAIRMAN OF VANGUARD MEDICA LTD A PHARMACEUTICAL FIRM IN HARTFORDSHIRE ENGLAND 9303170007 930317 BUSINESS BRIEF SBS ENGINEERING INC FIRM SUES GENERAL ELECTRIC OVER CERTAIN COST OVERRUNS SBS ENGINEERING INC ALBUQUERQUE NM SAID IT FILED A LAWSUIT IN US DISTRICT COURT SEEKING 18 MILLION IN DAMAGES FROM GENERAL ELECTRIC CO IN CONNECTION WITH COST OVERRUNS INVOLVED IN DEVELOPING A HELICOPTER FLIGHT TRAINING SIMULATOR SBS SAID IT BUILT THE SIMULATOR FOR GE'S AEROSPACE DIVISION AND ULTIMATELY THE US AIR FORCE IN A NEWS RELEASE SBS SAID IT HAD NEVER BEFORE PRODUCED SUCH A SIMULATOR AND THAT IN CONTRACT NEGOTIATIONS IT HAD RELIED UPON CERTAIN REPRESENTATIONS MADE BY GE CONCERNING THE WORK THE DESIGNER AND PRODUCER OF FLIGHT SIMULATION SYSTEMS SAID THAT THE PROJECT HAD INVOLVED NUMEROUS PERFORMANCE DELAYS AND COST OVERRUNS AND THAT GE HAD FAILED TO PAY INVOICES ON TIME PROVIDE REQUIRED NECESSARY SUPPORT AND CHANGED THE REQUIREMENTS OF THE CONTRACT A SPOKESMAN FOR GE'S AEROSPACE DIVISION SAID THE CLAIMS WERE WITHOUT MERIT AND THAT GE PLANNED TO FILE A COUNTERCLAIM TO RECLAIM COSTS IT INCURRED WHEN SBS ALLEGEDLY FAILED TO MEET SCHEDULE COMMITMENTS HE SAID THAT DURING CONTRACT NEGOTIATIONS SBS CLAIMED IT HAD SIGNIFICANT CAPABILITY TO HANDLE SUCH A PROJECT 9303170006 930317 IPALCO DIVISION'S DEBT IS PUT UNDER REVIEW DUE TO OFFER FOR PSI A WALL STREET JOURNAL NEWS ROUNDUP THE NATION'S TWO BIGGEST CREDITRATING AGENCIES REACTED SIMILARLY TO IPALCO ENTERPRISES INC'S DISCLOSURE THAT IT PLANS TO MOUNT A HOSTILE BID FOR PSI RESOURCES INC BOTH COMPANIES PUT THE DEBT RATINGS OF IPALCO'S INDIANA POWER & LIGHT CO UNDER REVIEW FOR POSSIBLE DOWNGRADE AND SAID THEY'LL EXAMINE AT THE SAME TIME WHETHER PSI'S RATINGS SHOULD BE RAISED STANDARD & POOR'S CORP SAID CREDIT IMPLICATIONS OF THE ROUGHLY 15 BILLION STOCKANDCASH BID ARE NEGATIVE FOR IPALCO SINCE IT WOULD BE ACQUIRING A WEAKER ENTITY AT A SUBSTANTIAL PREMIUM OVER BOOK VALUE CONVERSELY S&P NOTED AN IPALCO ACQUISITION OF PSI WOULD BE POSITIVE FOR PSI SINCE THE UTILITY HOLDING COMPANY WOULD BE ACQUIRED BY A STRONGER CREDIT IF IPALCO'S PLANNED BID SUCCEEDS S&P SAID IT APPEARS AS IF THE CREDIT RATING OF THE COMBINED COMPANY WOULD BE IN THE SINGLEA CATEGORY IPALCO IS BASED IN INDIANAPOLIS AND HAS ABOUT 600 MILLION OF LONGTERM DEBT OUTSTANDING PSI PLAINFIELD IND HAS ABOUT 500 MILLION OF LONGTERM DEBT MOODY'S INVESTORS SERVICE INC SAID NOTING THAT PSI HAD AGREED IN DECEMBER TO A FRIENDLY MERGER WITH CINCINNATI GAS & ELECTRIC CO S&P SAID IT ISN'T CLEAR HOW CG&E OR PSI WILL RESPOND TO THE IPALCO OFFER THE EXTENT OF IPALCO'S CREDIT EROSION S&P SAID WILL DEPEND ON HOW INDIANA REGULATORS TREAT THE ISSUE OF THE PREMIUMOVERBOOK VALUE ISSUE AS WELL AS THE SIZE OF THE COST SAVINGS AND SYNERGIES THAT WOULD ARISE FROM AN IPALCO/PSI UNIT S&P ALSO SAID IT WOULD DEPEND ON THE ABILITY AND WILLINGNESS OF IPALCO TO REDUCE DEBT AFTER THE MERGER 9303170004 930317 MEDICAL LAB OPERATOR ASSOCIATES PLEAD GUILTY TO FRAUD ON INSURANCE LOS ANGELES MEDICAL LABORATORY OPERATOR MICHAEL SMUSHKEVICH AND TWO ASSOCIATES PLEADED GUILTY TO NUMEROUS FRAUD COUNTS IN A SCHEME THAT FEDERAL PROSECUTORS HAVE CALLED ONE OF THE BIGGEST MEDICALINSURANCE FRAUDS IN US HISTORY THE PLEA AGREEMENTS WERE REACHED SHORTLY BEFORE THE GOVERNMENT'S OPENING STATEMENT IN A FEDERAL COURT TRIAL HERE YESTERDAY MR SMUSHKEVICH A RUSSIAN IMMIGRANT ADMITTED TO NINE COUNTS OF MAIL AND WIRE FRAUD AND EMBEZZLEMENT OF GOVERNMENT PROPERTY IN EXCESS OF 80 MILLION BOGICH JOVOVICH A SOUTHERN CALIFORNIA PHYSICIAN PLEADED GUILTY TO SEVEN COUNTS OF MAIL FRAUD AND EMBEZZLEMENT THE THIRD ASSOCIATE ARTHUR LUCERO PLEADED GUILTY TO ONE COUNT OF MAIL FRAUD DETAILS OF THE MENS' ROLES IN THE SCHEME WEREN'T IMMEDIATELY AVAILABLE MR SMUSHKEVICH'S YOUNGER BROTHER DAVID PREVIOUSLY PLEADED GUILTY TO SIMILAR FRAUD CHARGES THAT HAVEN'T BEEN FORMALLY ANNOUNCED BECAUSE OF A GAG ORDER IMPOSED BY PRESIDING JUDGE TERRY J HATTER THE US ATTORNEY'S OFFICE SAID NONE OF THE DEFENDANTS OR THEIR ATTORNEYS COULD BE REACHED FOR COMMENT LATE YESTERDAY THE US ATTORNEY'S OFFICE SAID PROSECUTING ATTORNEYS WEREN'T AVAILABLE TO DISCUSS THE PLEAS BECAUSE THE TRIAL IS CONTINUING AGAINST ANOTHER DEFENDANT PHYSICIAN WILLIAM O KUPFERSCHMIDT AFTER A LENGTHY INVESTIGATION THE GOVERNMENT ALLEGED IN A JULY 1991 INDICTMENT THAT DOCTORS AND TECHNICIANS AT SMUSHKEVICH CLINICS IN SOUTHERN CALIFORNIA SUBMITTED AS MUCH AS 1 BILLION IN FALSE CLAIMS TO INSURANCE COMPANIES AND TO THE DEPARTMENT OF DEFENSE CIVILIAN HEALTH AND MEDICAL PROGRAM FOR THE UNIFORMED SERVICES KNOWN AS CHAMPUS THE DEFENDANTS INCLUDING THE SMUSHKEVICH BROTHERS THEIR WIVES AND CERTAIN CLINIC DOCTORS AND MANAGERS SOLICITED THE PUBLIC BY TELEPHONE WITH PROMISES OF FREE OR NOMINAL COST EXAMINATIONS OR DIAGNOSTIC TESTS THE INDICTMENT CHARGES PATIENTS SIGNED FORMS ASSIGNING TO THE CLINICS THE RIGHT TO INSURANCE BENEFITS BILLS WERE SUBMITTED TO INSURERS FALSELY INDICATING THAT THE TESTS HAD BEEN PRESCRIBED BY A DOCTOR PROSECUTORS SAID 9303170003 930302 OFF THE AIR NBC NEWS PRESIDENT BURNED BY STAGED FIRE AND GM WILL RESIGN GARTNER EXNEWSPAPERMAN CUT STAFF BOOSTED PROFITS BUT STAYED AN OUTSIDER PRICKLY ALOOF OR JUST SHY BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICHAEL GARTNER HAS BEEN BITTEN MORE OFTEN THAN MOST PEOPLE IN HIS 54 YEARS ONCE BY HIS OWN DOG ONCE BY A FRIEND'S DOG ONCE EVEN BY A COLLEAGUE'S PARTLY DOMESTICATED LION BUT THOSE ATTACKS WERE NOTHING COMPARED WITH THE NBC DATELINE STORY ABOUT EXPLODING GENERAL MOTORS CORP TRUCKS WHICH ROSE UP AND BIT THE NBC NEWS PRESIDENT LAST MONTH AND FORCED NBC TO ISSUE A HUMILIATING ONAIR APOLOGY TO THE AUTO MAKER NOW MR GARTNER A FORMER NEWSPAPER EDITOR WHO HAS PRESIDED OVER NBC NEWS FOR NEARLY FIVE TUMULTUOUS AND OFTEN COMBATIVE YEARS HAS DECIDED TO RESIGN HE MAY ANNOUNCE HIS RESIGNATION AS EARLY AS TODAY JUST THREE DAYS BEFORE NBC IS TO RECEIVE THE RESULTS OF AN INDEPENDENT INVESTIGATION OF WHAT WENT WRONG IN THE REPORTING OF THE GM STORY AND IN THE ENSUING SCANDAL IT IS UNCLEAR HOW DAMAGING THE REPORT WILL BE TO MR GARTNER BUT THE DATELINE INCIDENT HAS LEFT HIM ISOLATED AT NBC MR GARTNER EVIDENTLY DIDN'T KNOW IN ADVANCE THAT A VIDEOTAPE OF A GM TRUCK EXPLODING HAD BEEN STAGED WITH THE HELP OF MODEL ROCKETS STRAPPED TO THE FUEL TANKS BUT HE PUBLICLY DEFENDED NBC'S CONDUCT EVEN AFTER HE KNEW SOME DETAILS OF THE PROBLEMS AND HE WAS APPARENTLY ENOUGH OUT OF TOUCH WITH HIS TROOPS THAT HE DIDN'T KNOW ALL OF GM'S COMPLAINTS UNTIL HE SAW THEM BROADCAST ALONG WITH THOUSANDS OF OTHER PEOPLE AT A LIVE GM NEWS CONFERENCE MR GARTNER'S SUPPORTERS SEE ALL THIS AS A PAINFUL AND DEMORALIZING IRONY HE HAS BEEN BLAMED FOR ALL SORTS OF THINGS IN HIS TENURE AS PRESIDENT OF NBC NEWS GUTTING THE BUDGET BOTCHING THE COVERAGE OF THE SAN FRANCISCO EARTHQUAKE BUNGLING THE TODAY TRANSITION FROM THE BELOVED JANE PAULEY TO DEBORAH NORVILLE NAMING THE ALLEGED RAPE VICTIM IN THE WILLIAM KENNEDY SMITH TRIAL SERVING UP THE GRISLY TABLOID TV OF I WITNESS VIDEO BUT NOT EVEN HIS FIERCEST CRITICS HAD FOUND FAULT WITH THE ETHICAL STANDARDS OF HIS JOURNALISM UNTIL THE GM DEBACLE MR GARTNER EARNED WIDESPREAD RESPECT IN HIS LONG CAREER AS A NEWSPAPER EDITOR AT THE SMALLEST OF NEWSPAPERS AND AT SOME OF THE LARGEST INCLUDING THE WALL STREET JOURNAL WHERE HE ONCE SERVED AS THE PAGE ONE EDITOR HE IS A JOURNALIST'S JOURNALIST SAYS NBC NEWS ANCHORWOMAN MARIA SHRIVER BUT MR GARTNER SEEMED DESTINED FOR CRITICISM FROM THE MOMENT HE TOOK THE TOP JOB AT NBC NEWS HE WAS THE FIRST PRINT JOURNALIST IN RECENT TIMES TO TAKE CONTROL OF A BROADCAST NEWS DIVISION AND HIS STATUS AS AN OUTSIDER HAS PERSISTED EVER SINCE IN PART BECAUSE HE DIDN'T DO MUCH TO CHANGE IT HE HAD AN ADDED DISADVANTAGE MR GARTNER IS SEEN BY MANY AS PRICKLY ARROGANT AND ALOOF DESPITE THE 14HOUR DAYS HE PUTS IN AT THE OFFICE AND THE FACT THAT HIS NUMBER IS LISTED IN THE PHONE BOOK ALTHOUGH HE GETS MORE CALLS FOR THE HOCKEY STAR BY THE SAME NAME THAN HE DOES FROM IRATE VIEWERS AND EMPLOYEES UNCOMFORTABLE WITH THE SCHMOOZY STYLE AND THE EGOMASSAGING THAT ARE EXPECTED OF A TV NEWS PRESIDENT MR GARTNER NEVER QUITE GOT IT RIGHT HIS FRIENDS SAY HE IS A SHY MAN NOT GIVEN TO SMALL TALK BUT ONE WHO CAN BE A CHARMING STORYTELLER TO THOSE HE TRUSTS MR GARTNER ACCEPTS THE CHARGE THAT HIS BEHAVIOR CAN BE ARROGANT AND ALOOF BECAUSE HE SAYS HE HAS BEEN TOLD IT AGAIN AND AGAIN I DON'T TRY TO BE HE SHRUGS BUT I AM WHO I AM UNTIL NOW HE HAD MAINTAINED HIS CRITICAL SUPPORT BASE AT NBC PARENT GENERAL ELECTRIC CO EVEN AS THE NEWS DIVISION WAS BUFFETED BY CONTROVERSY AFTER CONTROVERSY HE SURVIVED BECAUSE HE DID WHAT GE ASKED HE CUT EXPENSES EXPANDED PROGRAMMING AND PUSHED THE NEWS DIVISION TO PROFITABILITY MR GARTNER IS AN INDIVIDUALIST WHO ALWAYS WEARS BOW TIES NOT AN AFFECTATION HE SAYS BUT A NECESSITY ONCE I STARTED DIAPERING BABY BOYS AND WHO HAS AN OVERWHELMING SENSE OF THE RIGHT TO PUBLIC COMMENT HE IS AN ABSOLUTIST ON THE FIRST AMENDMENT RIGHT TO FREE SPEECH AND THAT EXTENDS TO HIS OWN RIGHT TO SAY AND WRITE WHATEVER HE WANTS EVEN AFTER HE GOT THE NBC NEWS JOB MR GARTNER KEPT WRITING AN OUTSPOKEN COLUMN FOR THE WALL STREET JOURNAL AND ANOTHER FOR USA TODAY THAT SOMETIMES LED TO TROUBLE WITH NBC AFFILIATE STATIONS AS WHEN HE ANGERED THE NATIONAL RIFLE ASSOCIATION WHICH THEN PUT PRESSURE ON NBC AFFILIATES ONE OF MY FLAWS IS I DON'T GET SCARED MR GARTNER SAYS AND THIS TRAIT BEGAN CAUSING COMMOTION EARLY IN HIS LIFE AT AGE SEVEN AS A GUEST ON ART LINKLETTER'S HOUSE PARTY HE EMBARRASSED THE ENTIRE FAMILY BY DISTILLING THE RATHER COMPLICATED STORY OF HIS PARENTS' COURTSHIP DAD WAS A BOARDER AT MOM'S PARENTS' HOUSE AND THEY RACED TO MARRY BEFORE A RELIGIOUS DEADLINE DOWN TO THIS THEY WERE LIVING TOGETHER AND HAD TO GET MARRIED BOTH HIS MOTHER'S FATHER AND HIS OWN FATHER WERE IOWA NEWSPAPERMEN BY AGE FIVE MR GARTNER WAS HANGING AROUND AT THE DES MOINES REGISTER AFTER HIS PIANO LESSONS AT AGE 15 HE STARTED WORKING IN THE SPORTS DEPARTMENT COMPILING SCORES MR GARTNER'S FATHER ONCE TURNED DOWN A TOP JOB AT LOOK MAGAZINE BECAUSE HE DIDN'T WANT TO MOVE THE FAMILY TO NEW YORK THAT SAME TERRITORIALITY WAS AN IRRITANT WHEN MR GARTNER TOOK THE NBC NEWS JOB AS EVIDENCE OF MR GARTNER'S ALOOFNESS HIS CRITICS CITE THE FACT THAT HE NEVER MOVED HIS FAMILY TO NEW YORK FROM DES MOINES PREFERRING INSTEAD TO TRAVEL BACK TO HIS HOME STATE ON WEEKENDS ON THE OTHER HAND MANY PEOPLE THINK THAT IDEA MAKES PERFECT SENSE IF YOU CAN AFFORD IT OUR PERSPECTIVE HERE IS THAT HE HAS ONE FOOT IN REALITY AND ONE FOOT IN NEW YORK SAYS GARY GERLACH HIS CLOSE FRIEND AND A FORMER WASHINGTON LAWYER IT'S A STRATEGY FOR SANITY AND BALANCE PROBABLY MORE OF WHICH IS NEEDED IN NETWORK TELEVISION MR GARTNER MR GERLACH AND A THIRD PARTNER NOW RUN A GROUP OF NINE COMMUNITY NEWSPAPERS IN IOWA ILLINOIS AND NEBRASKA WHEN NBC PRESIDENT ROBERT WRIGHT WENT SHOPPING FOR A NEW PRESIDENT OF THE NEWS DIVISION ALMOST FIVE YEARS AGO HE WAS LOOKING FOR SOMEONE WHO WOULD CHANGE THINGS THE NEWS DIVISION WAS IN A DEMORALIZED DOWNWARD SPIRAL WITH LOOMING BUDGET CUTS DESPERATELY NEEDED TO ELIMINATE THE 126 MILLION ANNUAL LOSS THAT THE DIVISION WAS SUSTAINING ON ITS 300 MILLION BUDGET MANY FEARED THAT NBC NEWS WAS HEADED FOR EXTINCTION UNDER THE FISCALLY TOUGH REGIME OF GENERAL ELECTRIC UNLESS THE LOSSES COULD BE STANCHED AND NBC NEWS EMPLOYEES WORRIED THAT GE WOULD BRING IN SOMEONE FROM PLASTICS AS A FORMER EXECUTIVE PUT IT TO CARRY OUT THE CUTBACKS WITHOUT REGARD TO JOURNALISTIC NEEDS MR WRIGHT TALKED TO A NUMBER OF CANDIDATES TO REPLACE THE OUSTED LAWRENCE GROSSMAN MANY OF THEM NEWSPAPER EXECUTIVES WHO HAVING SEEN NEWSPAPERS FOLD IN RECENT YEARS MIGHT UNDERSTAND THE AX HANGING OVER THE DIVISION AT NBC THEN STUART SUCHERMAN A CONSULTANT WITH JACK HILTON INC A KEY ADVISER TO GE CHAIRMAN JOHN F WELCH JR SUGGESTED THAT MR WRIGHT TALK TO MICHAEL GARTNER THE IOWABASED EDITOR WAS ALSO WELL KNOWN TO NBC NEWS EXECUTIVE GORDON MANNING AND ANCHOR TOM BROKAW WHO KNEW MR GARTNER FROM HIS TRIPS TO IOWA FOR THE PRESIDENTIAL POLITICAL CAUCUSES AT THE TIME MR GARTNER WAS SERVING AS AN ADVISER TO USA TODAY AND HAD OVERSEEN THE CLOSING OF THE AFTERNOON DES MOINES TRIBUNE WHICH WAS MERGED INTO THE MORNING REGISTER HE ALSO HAD SUPERVISED COSTCUTTING EFFORTS AT THE COURIERJOURNAL IN LOUISVILLE KY AT FIRST MR GARTNER SAYS HE RESISTED MR WRIGHT'S OFFER TO TAKE OVER NBC NEWS BECAUSE HE KNEW LITTLE ABOUT TELEVISION EXCEPT FOR MINIMAL INVOLVEMENT IN THE OPERATIONS OF TWO TV STATIONS OWNED BY THE DES MOINES PAPERS AND A GROUP OF RADIO AND TV STATIONS OWNED BY HIS FATHERINLAW BUT THERE WAS NEVER ANY DOUBT IN HIS MIND THAT HE COULD HANDLE THE DAUNTING TASK HE SAYS AND SO WHEN MR WRIGHT PERSISTED MR GARTNER ACCEPTED BUT WHEN HE ARRIVED AT NBC NEWS MR GARTNER SAYS HIS FIRST REACTION WAS WOW THIS ISN'T GOING TO BE REAL EASY REAL FAST OR REAL CLEAN HE SET ABOUT EDUCATING HIMSELF LEADING INTENSE MORNING STAFF MEETINGS AFTER A FEW MONTHS HOWEVER HE DREW BACK FROM DAYTODAY CONTACT WITH HIS EMPLOYEES TO BEGIN THE PAINFUL PROCESS OF CUTTING THE RANKS AND THE BUDGET JUST ONE YEAR LATER NBC EXECUTIVES WERE READY TO FIRE MR GARTNER AND REPLACE HIM WITH SPORTS PRODUCER DON OHLMEYER BECAUSE MR GARTNER WASN'T MOVING FAST ENOUGH TO OVERHAUL WHAT WAS ONSCREEN MR OHLMEYER TURNED DOWN THE JOB BUT THE EVENT RECEIVED PROMINENT TREATMENT IN AUTHOR KEN AULETTA'S RECENT BOOK ON THE NETWORKS THREE BLIND MICE EMBARRASSING MR GARTNER PUBLICLY MR OHLMEYER WAS JUST RECENTLY NAMED NBC'S WEST COAST PRESIDENT OVERSEEING ENTERTAINMENT TODAY NBC NEWS IS IN MUCH BETTER SHAPE FINANCIALLY MR GARTNER'S REGIME OF STRINGENT COSTCUTTING WHICH HAS INCLUDED CLOSING MANY BUREAUS REDUCING SALARIES AND LAYING OFF MOSTLY LOWERLEVEL STAFFERS COUPLED WITH A DRAMATIC INCREASE IN THE AMOUNT OF PROGRAMMING IS EXPECTED TO PAY OFF THIS YEAR WITH A MODEST PROFIT OF ABOUT 20 MILLION BUT MORALE AT NBC NEWS HAS STAYED LOW PARTLY BECAUSE OF A PERCEPTION THAT MUCH OF THE NEW WORK WAS BEING DONE ON THE CHEAP SPIRITS PLUMMETED WHEN THE DATELINE SCANDAL OVER THE GM STORY BROKE MANY PEOPLE AT THE NETWORK FELT THAT IT WAS A RESULT OF NBC'S RATINGSATWHATEVERCOST ATMOSPHERE MATTERS WEREN'T HELPED WHEN MR WRIGHT NBC'S PRESIDENT TOLD EMPLOYEES LAST WEEK THAT THE PROBLEM WITH THE DATELINE INCIDENT WASN'T SO MUCH THAT IT HAPPENED BUT THAT NBC GOT CAUGHT HE NOTED THAT THE NEW YORK TIMES MAKES NUMEROUS CORRECTIONS THAT GO UNNOTICED HE DIDN'T POINT OUT THAT THE TIMES HASN'T BEEN ACCUSED OF MANUFACTURING NEWS EVENTS AND IN A BIT OF UNFORTUNATE TIMING NBC NEWS LAST WEEK ISSUED ANOTHER UNRELATED APOLOGY THIS ONE FAR MORE ROUTINE THE NETWORK SAID IT HAD MISLABELED FOOTAGE SUPPLIED BY AN OUTSIDE AGENCY THAT WAS USED TO ILLUSTRATE A STORY ON THE CONSEQUENCES OF LOGGING MR GARTNER TOLD ASSOCIATES THAT THE RECENT TUMULT HAD BEEN PAINFUL AND PERSONALLY EMBARRASSING FOR HIM AT FIRST IT DIDN'T SEEM LIKE A THREAT TO HIS CAREER ALTHOUGH THE SNAFUS HAPPENED ON HIS WATCH MANY PEOPLE INSIDE NBC NEWS BELIEVED MR GARTNER WOULD ESCAPE UNSCATHED GENERAL ELECTRIC CHAIRMAN WELCH PRAISED MR GARTNER'S HANDLING OF THE GM PROBLEM AT A MEETING OF NBC MANAGERS THE DAY AFTER THE APOLOGY WAS ISSUED BUT THEN PRINT JOURNALISTS BEGAN PUBLICLY LAMBASTING THEIR FORMER COLLEAGUE A NEW YORK TIMES EDITORIAL CRITICIZED NBC'S CALLING ON OUTSIDE COUNSEL TO INVESTIGATE THE MESS AS HIDING BEHIND THE LAWYERS A WASHINGTON POST COLUMNIST TOOK AIM AT MR GARTNER AND A NEWSWEEK COLUMNIST DID TOO MR GARTNER WAS FURTHER HURT BY A DEAFENING SILENCE ON THE PART OF MANY OFFICIALS WHO HAD PREVIOUSLY BACKED HIM NBC PRESIDENT WRIGHT FOR MOST OF MR GARTNER'S TENURE AN ARDENT SUPPORTER HAS BEEN NOTICEABLY MUTE OTHER TOP EXECUTIVES AT NBC DIDN'T RUSH TO HIS SIDE EVEN MR SUCHERMAN THE OUTSIDE CRISIS CONSULTANT WHO FIRST RECOMMENDED MR GARTNER FOR THE JOB AND WHO HAS BEEN HIS CLOSE ADVISER SINCE HAS BEEN GONE ON A 10DAY TRIP OUT OF THE COUNTRY IN AN INTERVIEW LAST WEEK MR GARTNER SAID THAT WHEN HIS CAREER AT NBC WAS OVER HE PLANNED TO RETURN TO IOWA TO CONCENTRATE ON HIS NEWSPAPER GROUP AND PERHAPS TO WRITE A BOOK ITS TOPIC HE SAID WOULD BE CENSORSHIP IN ALL ITS FORMS HE NOW WILL BE ABLE TO GET TO WORK ON IT A LOT EARLIER THAN HE HAD PLANNED SEE RELATED LETTER LETTERS TO THE EDITOR NBC PRESIDENT WHAT I REALLY SAID WSJ MARCH 12 1993 9303020066 9303170002 930317 MARKETING & MEDIA SNAPPLE INTRODUCES SEVEN FLAVORS VALLEY STREAM NY SNAPPLE BEVERAGE CORP ANNOUNCED THE ADDITION OF SEVEN NEW FLAVORS TO AN ALREADY EXTENSIVE LINE OF ALLNATURAL BEVERAGES SNAPPLE SAID THE THREE NEW ICED TEA FLAVORS THREE JUICE DRINKS AND A NEW SODA BEARING SUCH EXOTIC NAMES AS MANGO MADNESS PINEAPPLE AND DIET PEACH ICED TEA BRING THE COMPANY'S FLAVOR COUNT TO 59 SNAPPLE MAKES ALLNATURAL ICED TEAS FRUIT DRINKS AND SODAS 9303170001 930317 FINANCING BUSINESS STAODYN INC STAODYN INC LONGMONT COLO SAID IT IS WITHDRAWING ITS PROPOSED PUBLIC OFFERING BECAUSE OF ITS DECLINING STOCK PRICE AND THE GENERAL MARKET FOR THE SECURITIES OF HEALTHCARE COMPANIES STAODYN WHICH MAKES ELECTROMEDICAL EQUIPMENT HAD PLANNED AN OFFERING OF 13 MILLION UNITS EACH CONSISTING OF ONE SHARE OF COMMON STOCK AND ONE SERIES II WARRANT TWO SERIES II WARRANTS WOULD HAVE ENTITLED HOLDERS TO PURCHASE ONE SHARE OF COMMON AT 1 1/2 TIMES THE UNIT PRICE FOR TWO YEARS FROM THE DATE OF THE OFFERING THE COMPANY SAID THAT AS A RESULT OF THE WITHDRAWAL IT WON'T REDUCE THE EXERCISE PRICE OF WARRANTS CURRENTLY OUTSTANDING AND DUE TO EXPIRE IN JUNE THE COMPANY SAID IT HASN'T DECIDED WHETHER IT WILL EXTEND THE TERM OF THOSE WARRANTS 9303170148 930209 WHEN CRITTERS GET WAY TOO COMMON BETTER WATCH OUT BIG HUNGRY RODENTS AND BIRDS DRAW IRE AND OFTEN FIRE RIGHTS ACTIVISTS CRY FOUL BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL MCALLEN TEXAS OTHAL BRAND THE 73YEAROLD MAYOR OF THIS RIO GRANDE VALLEY FARM TOWN BRAKES HARD ON HIS OLDSMOBILE AND BOUNCES OVER THE CURB OF A CONSTITUENT'S LAWN HE AIMS A PELLET RIFLE OUT THE CAR WINDOW AND FIRES HIS QUARRY A GREATTAILED GRACKLE WITH ITS PLAIN DARK FEATHERING AND BONY FRAME THE GRACKLE IS HARDLY A GAME BIRD YET MR BRAND DISPLAYS A STUFFED PAIR OF THEM ON HIS DESK HE CLAIMS TO HAVE KILLED AS MANY AS 125 GRACKLES IN ONE MORNING ON THE WAY TO CITY HALL BUT ON THIS DAY MR BRAND'S PREY ELUDES HIM AND FLIES ON OH THEY'RE SMART THEY KNOW MY CAR AND THEY CAN SENSE A GUN POINTING AT THEM SAYS MR BRAND THAT'S WHY THERE ARE MILLIONS AND MILLIONS OF THEM BUT THEY AREN'T SAFE ANYWHERE IN MCALLEN CHARLES DARWIN WAS PARTLY RIGHT THE FITTEST SURVIVE UNTIL THEY ANNOY THE SPECIES WITH THE GUNS THEN A CONTRACT GOES OUT ON THEM DESPITE ALL THE NEWS ABOUT PROTECTING OWLS AND WHALES LOTS OF PEOPLE ARE CARRYING OUT THE TIMEHONORED TRADITION OF MASSACRING ANYTHING THAT GETS IN THEIR WAY FROM ALLIGATORS TO OPOSSUMS TO WHITETAILED DEER FOES OF THESE ENDURING ANIMALS ROUTINELY TAG THEIR TARGETS WITH THE SAME PEJORATIVES PESKY MISCHIEVOUS AND MARAUDING AS IN MARAUDING FLOCKS USED IN A RECENT HOUSTON CHRONICLE ARTICLE ABOUT GRACKLES ROGER KNUTSON A BOTANIST AND THE AUTHOR OF FLATTENED FAUNA A TONGUEINCHEEK FIELD GUIDE TO THE REMAINS OF ANIMALS WHO DON'T SUCCESSFULLY CROSS THE ROAD SAYS WE SYMPATHIZE WITH THE SPECIES ON THE EDGE OF EXTINCTION BUT THOSE THAT CROWD US HAD BETTER WATCH OUT ALL THIS CREATES A DILEMMA FOR SOME WILDLIFE DEFENDERS WHO ARE MORE ENTHUSIASTIC ABOUT SUCH SCARCE TYPES AS THE WHOOPING CRANE THAN THE PLENTIFUL GRACKLE CINDY CHAPMAN EXECUTIVE DIRECTOR OF THE AUDUBON SOCIETY IN SOUTH TEXAS SAYS I KNOW SOME BIRDS CAUSE PROBLEMS BUT WOULD IT BE RIGHT TO SHOOT PEOPLE BECAUSE YOU THINK THERE ARE TOO MANY OF THEM MS CHAPMAN ASKED THE US FISH AND WILDLIFE SERVICE TO INVESTIGATE MCALLEN'S MR BRAND BECAUSE SHOOTING GRACKLES IS ILLEGAL THEY ARE PROTECTED BY THE US MIGRATORY BIRD ACT OF 1974 ALONG WITH BLACKBIRDS AND MAGPIES AMONG OTHER UBIQUITOUS VARIETIES BUT THE AGENCY'S SPECIAL AGENT IN MCALLEN JOE RAMOS SAYS THE MAYOR IS WRIGGLING THROUGH A LEGAL LOOPHOLE THE LAW ALLOWS THE SHOOTING OF GRACKLES AND MANY OTHER FEDERALLY PROTECTED BIRDS WHEN THEY ARE FOUND COMMITTING OR ABOUT TO COMMIT DEPREDATIONS UPON TREES OR CROPS ALL GRACKLES ARE EITHER COMMITTING OR ABOUT TO COMMIT DEPREDATION THAT'S ALL THEY DO ASSERTS MR BRAND MR RAMOS SAYS I HAVE THOUGHT ABOUT GOING AFTER THE MAYOR ON THIS BUT ARRESTING HIM WOULD MEAN A HUNDRED PEOPLE DOWN HERE POINTING RIFLES AT MY BACK FOR THE TIME BEING THE MAYOR IS SAFE IN LOUISIANA THE PROBLEM IS NUTRIAS THERE THE NATIONAL PARK SERVICE PLANS TO PIT PROFESSIONAL SHARPSHOOTERS AGAINST THE RAVENOUS HORDES THE 16POUND RODENTS RESEMBLE BEAVERS EXCEPT FOR STRINGY RATLIKE TAILS THAT MAKE IT HARD FOR PEOPLE TO WARM UP TO THEM NUTRIAS ENTERED THE COUNTRY IN THE 1920S WHEN SOME APPARENTLY HITCHED A RIDE ON A BOAT FROM THEIR NATIVE SOUTH AMERICA TO THE LOUISIANA COAST NOW THEY'RE BLAMED FOR RUINING MUCH OF THE STATE'S NATURE PRESERVE AREAS SAYS BOB BELOUS SUPERINTENDENT OF JEAN LAFITTE NATIONAL HISTORICAL PARK NEAR NEW ORLEANS WHEN THE NUTRIAS ARE THROUGH WITH A MARSH THERE'S NOTHING LEFT BUT WATER SOME PEOPLE WANT MR BELOUS TO CONTROL NUTRIAS WITHOUT GUNS BY IMPORTING EXTRA ALLIGATORS HE RETORTS I CAN'T BRING IN ALLIGATORS FAST ENOUGH TO EAT THE NUTRIAS ALLIGATORS SLEEP ALL WINTER IN THE MUD AND THESE BIG FAT RODENTS ARE OUT THERE REPRODUCING AS WE SPEAK HE PLANS TO EQUIP MARKSMEN WITH SPECIAL BOATS TO TAKE THEM DEEP INTO MARSH AREAS WHERE EVEN ALLIGATORS DON'T GO WE KNOW THERE ARE NUTRIAS THERE IN HUDDLED MASSES IF LOUISIANA RECONSIDERS IMPORTING ALLIGATORS IT NEED LOOK NO FURTHER THAN FLORIDA WHICH WOULD LOVE TO REDUCE ITS REPTILE POPULATION THE SUNSHINE STATE IS HOME TO ABOUT ONE MILLION ALLIGATORS ACCORDING TO THE FLORIDA GAME AND FRESH WATER FISH COMMISSION ANIMALCONTROL OFFICIALS RECEIVE MORE THAN 10000 CALLS ANNUALLY FROM FLORIDIANS WHO WANT ALLIGATORS APPREHENDED FROM THEIR PROPERTY DENNIS DAVID A BIOLOGIST SAYS A LOT OF PEOPLE BUILT GOLF COURSES AND CONDOMINIUMS RIGHT BY WHERE GATORS LIKE TO GET SOME SUN THE IRONY OF THE CURRENT GATOR GLUT IS THAT THEY WERE PREVIOUSLY PROTECTED AS IF FATED TO GO THE WAY OF THE DINOSAURS ENVIRONMENTALISTS GOT FLORIDA OFFICIALS TO HALT THE HUNTING OF ALLIGATORS IN 1962 BUT BY 1975 SOME URBAN AREAS WERE OVERRUN AN EIGHTFOOTLONG RENEGADE SAUNTERED RIGHT DOWN MAIN STREET IN THE CITRUSGROWING COMMUNITY OF LAKELAND SINCE THEN ALLIGATOR PROTECTIONISTS HAVE BECOME A RARE BREED HUNTING ALLIGATORS IS LEGAL AGAIN FLORIDA TOURISTS WERE PREVIOUSLY LIMITED TO BUYING WALLETS AND BELTS MADE FROM THE LEATHER OF THE ALLIGATORLIKE SOUTH AMERICAN CAIMAN BUT AFTER TWO DECADES AS A SOUVENIR SHOP STANDIN FOR THE ALLIGATOR IT'S THE CAIMAN THAT'S IN SHORT SUPPLY OPEN SEASON ISN'T LIMITED TO THE SOUTH WHITETAILED DEER MAY SOON BE THE TARGET OF HIRED GUNS AT THE DU PAGE COUNTY ILL GIRL SCOUTS CAMP NEAR CHICAGO GARY BERGLING MANAGER OF THE 135ACRE PARK SAYS THE DEER DEVOUR TOO MANY ACORNS IF THEY EAT THEM ALL THERE WON'T BE ANY TREES THIS WILL BE A DESERT MR BERGLING IS CONSIDERING HIRING MARKSMEN TO KILL ALL BUT FIVE OR SIX OF THE 29 DEER HE ESTIMATES ARE IN THE PARK BUT HE HASN'T DECIDED WHETHER TO LET THE GIRL SCOUTS KNOW HIS PLANS HE SAYS ONE WAY TO BREAK SUCH NEWS IS TO EXPLAIN TO THE SCOUTS THAT IF THE DEER AREN'T SHOT MANY WOULD LIKELY STARVE TO DEATH SLOWLY LOGIC DOESN'T ALWAYS APPLY IN WILDLIFE MANAGEMENT FOR EXAMPLE IT'S NOW ILLEGAL TO BE AN OPOSSUM IN CALIFORNIA THE STATE'S FISH AND GAME COMMISSION LAST YEAR ISSUED A TERSE DECISION THAT OPOSSUMS ARE LISTED AS A DETRIMENTAL SPECIES AND ARE PROHIBITED IN CALIFORNIA OPOSSUM CRITICS SAY THEY'RE TIRED OF SEEING THE POINTYFACED MARSUPIALS ON THE LOOSE AND PROWLING THROUGH GARBAGE CANS THEY ACCUSE OPOSSUMS OF EVERYTHING FROM TRANSMITTING RABIES TO PUBLIC DROOLING THEY ONLY DROOL WHEN THEY'RE PLAYING DEAD TO FOOL PREDATORS INSISTS MARY NAYLOR A MEMBER OF THE OPOSSUM SOCIETY OF CALIFORNIA SHE RAISED HER PET OPOSSUM HILLARY FROM THE SIZE OF MY PINKIE SHE'S AN AMBASSADOR FOR OPOSSUMHOOD TO EVERYONE SHE MEETS NOT SO FOR THE MARKED GRACKLES OF MCALLEN WHERE MR BRAND NEVER MET EVEN ONE HE LIKES AS HE CRUISES IN HIS OLDS THE RIFLE BESIDE HIM THE CAR PHONE JINGLES WITH A CALL FROM HIS SON WHO'S AT HOME CALIBRATING ANOTHER GUN THE MAYOR DELIGHTED SAYS GOOD NOW GO SHOOT SOME PIGEONS SEE RELATED LETTER LETTERS TO THE EDITOR NATURE'S BRUTAL POPULATION CONTROL WSJ MARCH 16 1993 9302090131 9303170145 930216 REVIEW & OUTLOOK EDITORIAL CLINTON AND THE CHIEFS THE TENSION BETWEEN PRESIDENT CLINTON AND THE JOINT CHIEFS OF STAFF OVER GAYS IS BEING DESCRIBED BY SOME AS MILITARY INSUBORDINATION WE THINK IT HAS MUCH MORE TO DO WITH THE LESSONS OF VIETNAM NO WE DON'T MEAN IN THE SIMPLISTIC SENSE THAT MR CLINTON OPPOSED THE WAR WHILE THE CHIEFS SERVED WE MEAN THE MUCH MORE PROFOUND LESSONS THAT THE CHIEFS THEMSELVES WHO WERE THEN YOUNG OFFICERS TOOK AWAY FROM VIETNAM ABOUT THEIR OBLIGATIONS BOTH TO THE MILITARY AND TO THEIR CIVILIAN BOSSES MR CLINTON AND THE ANONYMOUS WHITE HOUSE AIDES GRIPING TO THE PRESS COULD STAND TO LEARN A THING OR TWO ABOUT HOW THE MILITARY THINKS THE FIRST LESSON IS THAT THE CHIEFS TAKE PRIDE IN RUNNING A RARE AMERICAN INSTITUTION THAT HAS REVITALIZED ITSELF SINCE THE 1960S THE MAINLINE CHURCHES MEDIA UNIVERSITIES AND ESPECIALLY THE CONGRESS WERE ALL DAMAGED AND CONFUSED BY THE 1960S AND THEIR AFTERMATH AND HAVE NEVER FULLY REGAINED A CLEAR SENSE OF PURPOSE FOR A TIME THE LARGER SOCIETY'S SOCIAL ILLS DRUGS RACIAL ANIMOSITY LACK OF ORDER AND SELFDOUBT BESET THE MILITARY TOO BUT OVER THE YEARS AND WITH THE HELP OF THE 1980S' MILITARY BUILDUP THE SERVICES TRANSFORMED THEMSELVES CULMINATING IN THE TREMENDOUS LOGISTICAL AND MILITARY FEAT OF THE GULF WAR MEANWHILE THE VOLUNTEER FORCE HAS BECOME ONE OF THE GREAT PATHS TO UPWARD MOBILITY FOR MANY YOUNG AMERICANS ESPECIALLY AFRICANAMERICANS WE ARE PERHAPS ONE OF THE MOST FLEXIBLE ROBUST INSTITUTIONS IN AMERICAN SOCIETY SAID CHAIRMAN COLIN POWELL ON TV LAST WEEK WITH OBVIOUS JUSTIFICATION I THINK WE HAVE DEMONSTRATED ESPECIALLY OVER THE LAST SEVERAL YEARS THAT WE CAN ADJUST TO CHANGE AND AT THE SAME TIME CONTINUE TO PERFORM OUR MISSION IN A SPLENDID WAY IS IT ANY WONDER THAT HAVING WORKED SO HARD TO RECLAIM THEIR MORAL AUTHORITY THAT THE CHIEFS AND OFFICERS WOULD BE WARY OF CIVILIAN PLANS TO REMAKE THEIR CULTURE A SECOND VIETNAM LESSON IS THE NECESSITY OF SPEAKING CANDIDLY TO CIVILIAN LEADERS BILL CLINTON AND OTHER ANTIWAR PROTESTERS BLAMED AMERICAN POLITICIANS FOR VIETNAM BUT HARRY SUMMERS THE MILITARY WRITER AND FRIEND OF GENERAL POWELL HAS DESCRIBED HOW IN THE WAKE OF VIETNAM THE YOUNG OFFICERS DIDN'T BLAME THEIR GENERALS IN THE FIELD SO MUCH AS THOSE IN WASHINGTON ESPECIALLY GENERAL MAXWELL TAYLOR WHO WAS HANDPICKED AS CHAIRMAN OF THE JOINT CHIEFS BY JFK AS ONE INFLUENTIAL GENERAL PUT IT NOT ONCE DURING THE WAR DID THE JCS ADVISE THE COMMANDERINCHIEF OR THE SECRETARY OF DEFENSE THAT THE STRATEGY BEING PURSUED MOST PROBABLY WOULD FAIL MR SUMMERS WRITES SUCH BEHAVIOR ON THE PART OF THE SENIOR LEADERSHIP EVOKED A SENSE OF DISGUST AND REVULSION AMONG THE MILITARY'S THEN JUNIOR OFFICERS SUCH AS LIEUTENANT COLONELS COLIN POWELL AND NORMAN SCHWARZKOPF NOW A GENERAL HIMSELF COLIN POWELL ADDED LAST WEEK PEOPLE SUGGEST THAT IF YOU SOMEHOW PRESENT YOUR POINT OF VIEW TO THE PRESIDENT THIS REFLECTS DISAGREEMENT OR INSUBORDINATION IN SOME WAY QUITE THE CONTRARY IN OTHER WORDS THE CHIEFS WILL SALUTE AND CARRY OUT PRESIDENTIAL ORDERS BUT THEY SURE WON'T MAKE THE VIETNAM MISTAKE OF NOT SPEAKING UP TO INFLUENCE THOSE ORDERS SINCE IT HARDLY SERVED KENNEDY OR LBJ TO HAVE YESMEN AS JOINT CHIEFS WE WOULD THINK THAT A PRESIDENT WHO KNOWS AS LITTLE ABOUT THE MILITARY AS BILL CLINTON WOULD WANT HIS GENERALS TO BE CANDID A THIRD LESSON RELATES SPECIFICALLY TO GENERAL POWELL AND TO THE GOLDWATERNICHOLS REFORM OF 1986 THAT REFORM WHICH WAS PASSED BY THE SORT OF PROMILITARY DEMOCRATS MR CLINTON CLAIMS TO ADMIRE MADE THE CHAIRMAN THE PRINCIPAL MILITARY ADVISER TO THE PRESIDENT ABOVE THE OTHER CHIEFS MR POWELL IS THE FIRST CHAIRMAN TO EXPLORE THE FULL POWERS OF THAT ROLE WHICH INCLUDES TELLING A PRESIDENT WHEN HE MAY BE MAKING A MISTAKE THIS SHOULD BE ESPECIALLY IMPORTANT WHEN MR CLINTON'S REFORMERS INCLUDE SOME OF THE SAME WHIZKIDS WHO HELPED RUIN THE MILITARY BACK IN THE 1960S LES ASPIN THE NEW SECRETARY OF DEFENSE LEARNED UNDER ROBERT MCNAMARA AND WHILE WE HOPE HE IS WISER NOW WE UNDERSTAND WHY THE MILITARY IS WARY OF HIS ATTEMPTS TO START OVER AS IF THIS WERE 1947 GIVEN THE PAROCHIALISM OF CONGRESS SECRETARY ASPIN'S REFORMS COULD END UP MAKING THE 1990S LOOK MORE LIKE THE HOLLOWARMY ERA OF 1968 TO 1978 IN LIGHT OF ALL OF THIS OUR OWN WORRY ISN'T THAT THE CHIEFS WILL BE OUTSPOKEN BUT THAT THEY'LL BE TOO QUIET SOME ARE ALREADY TOO WILLING IN OUR VIEW TO MAKE THE ARMY A HUMANITARIAN RELIEF AGENCY FROM MIAMI TO SOMALIA THEIR MAIN JOB AFTER ALL IS TO DETER AND WIN WARS WHILE ULTIMATELY THE CHIEFS MUST AND WILL BEND TO CIVILIAN AUTHORITY THEIR DUTY TO THE COUNTRY IS TO PROTECT THEIR ABILITY TO FULFILL THAT PREEMINENT MISSION SEE RELATED LETTER LETTERS TO THE EDITOR GEN TAYLOR GRACE UNDER POLITICAL FIRE WSJ MARCH 16 1993 9302160132 9303170121 930219 LEISURE & ARTS A POET WHO TURNED PEN TO SONG BY ROXANE ORGILL WHEN I FIRST HEARD ROBIN HOLCOMB'S SONGS I FOUND THE MUSIC INTRIGUING AND THE LYRICS IMPENETRABLE I PUZZLED BRIEFLY OVER LINES LIKE HANG ON THE FENCE THE HAT OF A MAN AND LIQUOR ON THE BREATH OF A WIND BEARING RAIN AND PUT THE CD AWAY THEN I FOUND THAT CERTAIN BITS OF THE MUSIC A QUIRKY MELODY A GLOOMY PROCESSION OF MINOR CHORDS WERE STUCK IN MY HEAD THEY NAGGED AT ME I LISTENED AGAIN THIS TIME A FEW IMAGES FLOATED TO THE SURFACE PROUD PIONEER FAMILIES THE COMFORT OF A BLANKET PLEASURE IN RISING BEFORE DAWN UNCONTROLLABLE CRYING THE CD ROCKABYE HER SECOND FROM ELEKTRA MUSICIAN IS A RARE COMMODITY A POP ALBUM THAT ASKS FOR REPEATED LISTENINGS TO BE UNDERSTOOD AND EVEN THEN QUESTIONS REMAIN LIKE THE WORK OF THE POETS SHE ADMIRES WS MERWIN GARY SNYDER AND WENDELL BERRY MS HOLCOMB'S SONGS YIELD THEIR MEANING IN PATCHES NOT WHOLE PIECES AND RARELY IN A LITERAL WAY THE SONG WHEN WAS THE LAST TIME IS ABOUT SETTING OFF TO FIND THE TOWN OF HOLCOMB WASH WHICH SHE SAW ON A MAP BUT WHEN WE GOT THERE THERE WAS JUST/A POLE A TREE A FIELD A SIGN/FOLLOWED AT SLOW SPEED BY A PATROL CAR/AND THERE'S NO PASSING THE LYRICS GO CLEAR ENOUGH BUT THE SONG IS ALSO SUPPOSEDLY ABOUT TRYING TO FIND MR BERRY'S HOUSE IN KENTUCKY ALSO WITHOUT SUCCESS AND THAT STORY ISN'T ANYWHERE I DON'T FEEL I HAVE A LOT TO TELL SOMEBODY LITERALLY MS HOLCOMB EXPLAINS ALMOST APOLOGETICALLY A POET BEFORE SHE TURNED PEN TO SONG SHE ADMITS TO BEING FRUSTRATED SOMETIMES AT NOT BEING ABLE TO TELL A STRAIGHTFORWARD TALE I'M TRYING TO FIND A WAY OF TELLING A STORY MORE DIRECTLY WHILE STILL KEEPING THE AIR IN IT THE MUSIC IS FULL OF AIR AND SPACE AND IT FITS NO CATEGORY THE MELODY CAN BE FLUID AND SINGABLE LIKE A FOLK SONG OR ALL ANGLES AND ELBOWS LIKE A CONTEMPORARY ART SONG THE RHYTHM IS ROOTED IN ROCK BUT THE ARRANGEMENTS ARE MORE SOPHISTICATED MORE DUKE ELLINGTON THAN THE DOORS IN ARRANGING SHE RELIES HEAVILY ON THE CONTRIBUTIONS OF HER MUSICIANS WHO INCLUDE HER HUSBAND COMPOSER WAYNE HORVITZ ON KEYBOARDS THE MULTITALENTED DOUG WIESELMAN ON CLARINET TENOR SAXOPHONE GUITARS AND MANDOLIN DAVE HOFSTRA ON BASS AND TUBA DANNY FRANKEL ON DRUMS AND STEW CUTLER ON GUITAR DESPITE THE NUMEROUS INSTRUMENTS AND A FONDNESS FOR LOW BRASS INCLUDING TROMBONE THE TEXTURE IS SURPRISINGLY SPARE A BIT LIKE A SCORE BY ANTON WEBERN MINUS THE ATONALITY MS HOLCOMB HERSELF PLAYS PIANO AND SINGS IN A CLIPPED VOICE WITH A NARROW RANGE THAT OFTEN FLIPS UP ON THE LAST WORD OF A LINE IN THE STYLE OF SOME FOLK SINGERS THE VOICE CAUGHT THE ATTENTION OF DAVID BITHER GENERAL MANAGER OF ELEKTRA BUT HER FIRST ALBUM ROBIN HOLCOMB SOLD A BARELY ACCEPTABLE 25000 COPIES HE SAYS ROCKABYE IS ALREADY APPROACHING THAT MARK AND MS HOLCOMB RECENTLY FILLED ST ANN'S CHURCH IN BROOKLYN NY FOR A PERFORMANCE HARDLY A KNOCKOUT SHOWING FOR A POP ARTIST BUT THEN SHE DOESN'T COME FROM THAT WORLD IN COLLEGE MS HOLCOMB IMMERSED HERSELF IN WEST JAVANESE GAMELAN MUSIC COMPOSING BUILDING INSTRUMENTS AND PERFORMING ON THE KENDANG A DOUBLEHEADED DRUM AT THE UNIVERSITY OF CALIFORNIA IN 1978 SHE AND MR HORVITZ MOVED TO NEW YORK CITY AND JOINED THE EXPERIMENTALMUSIC SCENE WE RENTED A BASEMENT IN THE WEST VILLAGE SHE RECALLS IT HAD A DIRT FLOOR AND IT WAS UNDER A PET SHOP IT HAD BEEN A TV REPAIR STORE AND THERE WAS A SIGN ON THE DOOR THAT SAID CALL HENRY IF YOU NEED YOUR TV FIXED' OR SOMETHING SO WE CALLED IT STUDIO HENRY WE BUILT A SMALL STAGE AND HELD PERFORMANCES ANIMALS WOULD ESCAPE FROM THE PET SHOP AND WE'D SEE LIZARDS GERBILS HAMSTERS YOU CAN HEAR CRICKETS IN THE BACKGROUND OF OUR RECORDINGS BETWEEN JOBS AS A TAPESTRY WEAVER CHEF'S ASSISTANT WRITER AND EDITOR OF CHILDREN'S TEXTBOOKS AND SELLER OF MUSIC BOXES IN MIDTOWN FOR A COUPLE OF DAYS MS HOLCOMB HELD POETRY READINGS AND PLAYED WILD EXUBERANT FREE JAZZ IN THE SPIRIT OF CECIL TAYLOR ALONE AT THE PIANO OR WITH A BIG BAND SHE PUT TOGETHER THAT WAS LOADED WITH SAXOPHONES AND TROMBONES FOR ME THERE WAS ALWAYS SOMETHING VERY SECURE IN FREE IMPROVISATION BECAUSE I WAS TOTALLY IN CONTROL OF THE CHAOS SHE SAYS AT THE ST ANN'S CONCERT SHE SLIPPED IN A FREEJAZZ INSTRUMENTAL AMONG THE SONGS A FIVENOTE PHRASE REPEATED IN THE BASS SERVED AS AN ANCHOR FOR EXHILARATING CACOPHONY IN THE OTHER INSTRUMENTAL VOICES AT THE PIANO DRESSED ALL IN BLACK WITH LONG BLOND HAIR ESCAPING FROM A PONYTAIL HER HEAD BOBBING JOYOUSLY MS HOLCOMB LOOKED COMPLETELY AT HOME FOR THE FIRST TIME THAT EVENING SHE BEGAN TURNING HER POEMS INTO SONGS AROUND THE TIME HER DAUGHTER NICA WAS BORN NEARLY SEVEN YEARS AGO MY FIRST EFFORTS WERE TOTALLY UNSATISFYING THE SONGS WERE CORNY AND CLUMSY I COULDN'T FIND MY VOICE IN IT SAYS THE SINGER WHO NOW LIVES IN SEATTLE THEN SHE WORKED ON A PRODUCTION OF THE TEMPEST SETTING SHAKESPEARE'S WORDS TO MUSIC IT WAS A VALUABLE EXERCISE AND MORE THE PERFORMERS TOLD ME THE HARMONIES AND MELODIES WERE UNNATURAL BUT THEY WERE NATURAL TO ME SO I THOUGHT MAYBE I HAVE SOMETHING HERE ONE OF HER FIRST SONGS WAS AMERICAN RHINE THE MUSIC IS MOSTLY BOPPING BONGOS A SIMPLE ONEHANDED MELODY ON THE PIANO AND A CLARINET MEANDERING IN AND OUT THE LYRICS CONTAIN THE MYSTIFYING LINES FURTHER ON DOWN THE AMERICAN RHINE NEEDLE FULL OF MIRACLES AND EVERYTHING THE SIZE OF A MOSQUITO GONE I'VE NEVER BEEN CLEAR AS TO WHAT IT'S ABOUT SHE SAYS SOME PEOPLE THINK IT'S ABOUT HEROIN I THINK IT'S ABOUT THE NEEDLE THAT THREADS THROUGH EXPERIENCES AND IT'S ABOUT THE ENVIRONMENT LOTS OF THINGS THAT ARE SORT OF SHIMMERING THERE THAT'S WHAT I'M GOING FOR A LOT OF THE TIME THINGS THAT ARE JUST SHIMMERING THERE MS ORGILL IS A FREELANCE WRITER IN HOBOKEN NJ SEE RELATED LETTER LETTERS TO THE EDITOR ROBIN HOLCOMB'S SONGS QUALITY COMES FIRST WSJ MARCH 16 1993 9302190143 9303170029 930211 PRICING HEALTH CARE CAUTIOUS LABELS WASTE SAFE DRUGS BY PHILIP R ALPER ONE OF THE MAJOR PLANKS IN HILLARY CLINTON'S HEALTHCARE REFORM PROGRAM IS LIKELY TO BE SLOWING THE RISE IN DRUG COSTS BUT HOW MUCH OF THE 59 BILLION THAT THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION ESTIMATES WAS SPENT ON PRESCRIPTION DRUGS IN THE US LAST YEAR WAS WASTED BECAUSE OF EXPIRED MEDICATIONS THAT HAD TO BE THROWN AWAY NOBODY SEEMS TO KNOW BUT IF THE FIGURE WERE ONLY 5 THAT WOULD REPRESENT A LOSS OF NEARLY 3 BILLION IN A SINGLE YEAR A SIMILAR PERCENTAGE OF THE OVERTHECOUNTER DRUG MARKET WOULD ADD ABOUT HALF A BILLION DOLLARS MORE WHEN HOSPITALS AND PHARMACIES OR DOCTORS USING FREE SAMPLES THROW OUT EXPIRED DRUGS OR RETURN THEM TO THE DRUG COMPANY COSTS ARE EVENTUALLY PASSED ON TO CONSUMERS BUT WHEN PILLS IN OUR HOMES BECOME OUTDATED THE LOSS COMES DIRECTLY OUT OF OUR OWN POCKETS THE RECENT PRACTICE OF DATING NONPRESCRIPTION DRUGS LIKE PAINKILLERS AND COLD PREPARATIONS HAS MADE THE NEED TO REPLACE EXPIRED PILLS SIGNIFICANTLY MORE LIKELY IT MAY SURPRISE YOU AS IT DID ME THAT EVEN SUGAR PILLS NOW CARRY AN EXPIRATION DATE BECTON DICKINSON A COMPANY BEST KNOWN AS A MAJOR MANUFACTURER OF INSULIN SYRINGES MAKES GLUCOSE TABLETS TO TREAT INSULIN REACTIONS IN DIABETICS WHEN I FOUND THAT A COUPLE DOZEN OF SUCH TABLETS HAD EXPIRED ONLY A FEW MONTHS AFTER MY OFFICE RECEIVED THEM I WAS RELUCTANT TO DISCARD THEM BECAUSE I'D NEVER HEARD OF SUGAR IN THE SUPERMARKET EXPIRING BARRY GINSBERG THE BD MEDICAL DIRECTOR COULDN'T REALLY EXPLAIN IT EITHER DR GINSBERG NOTES THAT FEDERAL REGULATIONS REQUIRE EVERY PHARMACEUTICAL COMPANY TO PROVE THE VALIDITY OF ITS EXPIRATION DATES THE EFFORT AND COST OF DOING SO LIMITS THE ABILITY OF THE COMPANY TO EXTEND THE DATES HE ADDS EVEN IF THE SUGAR DIDN'T GO BAD A BIT OF CRUMBLING OF THE TABLETS WOULD BE ENOUGH TO CAUSE THEM TO OFFICIALLY EXPIRE THE FDA DEMANDS PROOF OF STABILITY IN ORDER TO PROTECT THE PUBLIC FROM HARM BUT THERE IS NO REQUIREMENT THAT COMPANIES AIM FOR THE LONGEST POSSIBLE EXPIRATION DATES CONSEQUENTLY AFTER TWO OR THREE YEARS MOST UNUSED DRUGS HAVE TO BE DESTROYED A COSTLY PROCESS IN ITSELF AND ONE THAT NUMEROUS EXPERTS ACKNOWLEDGE IS OFTEN UNNECESSARY LONGER DATING MIGHT DECREASE THE AMOUNT OF WASTE IN THE SYSTEM BUT IT WOULD ALSO ELIMINATE THE OPPORTUNITY FOR SOME MANUFACTURERS TO RESELL THE SAME PRODUCT AT AN ADDITIONAL PROFIT DR GINSBERG FAULTS AN FDA EAGER TO AVOID BLAME FOR RARE BUT DANGEROUS DRUG SIDE EFFECTS AND A TORT SYSTEM THAT SEVERELY PUNISHES MANUFACTURERS WHEN THINGS GO WRONG HE SEES A PROBABLE DEGREE OF EXCESS CAUTION AS A RESULT DOV MICHAELI A CONSULTANT TO COLLAGEN CORP FEELS THAT DRUG QUALITY CONTROL HAS INDEED BECOME UNREALISTICALLY STRINGENT COMPANIES USING WORSTCASE ESTIMATES HAVE BECOME RISKAVERSE HE SAYS LIMITING SHELFLIVES IS AN EXAMPLE OF COSTLY DEFENSIVE MEDICINE MEDICATIONS DON'T EXPERIENCE SUDDEN DEATH ALL DRUGS DECOMPOSE OVER TIME IN GENERAL SOLIDS ARE MORE STABLE THAN LIQUIDS AND SIMPLE CHEMICAL COMPOUNDS ARE MORE STABLE THAN BIOLOGICALS SUCH AS VACCINES TO GET A HANDLE ON THE MAXIMUM RATE OF DEGRADATION COMPANIES SUBJECT THEIR PRODUCTS TO LIGHT HEAT AND HUMIDITY AND PERIODICALLY RECHECK SAMPLES THE RATE OF LOSS OF POTENCY VARIES WIDELY HARMFUL BREAKDOWN PRODUCTS MAY APPEAR IN A FEW DRUGS BUT SIGNIFICANT DANGER MUST BE QUITE UNUSUAL SINCE ASIDE FROM THE WIDELY USED ANTIBIOTIC TETRACYCLINE PHARMACOLOGISTS ARE HARD PUT TO CITE SPECIFIC INSTANCES JUST HOW MUCH POTENCY MUST A DRUG LOSE BEFORE IT IS DISQUALIFIED FOR CONSUMER USE TYPICALLY ABOUT 5 BUT SOME MANUFACTURERS ALLOW DRUGS TO EXPIRE BEFORE THEY HAVE LOST ANY POTENCY AT ALL SINCE THE LEEWAY ALLOWED AT THE TIME OF MANUFACTURE CAN BE CONSIDERABLY MORE UP TO 20 FOR BLOOD SERUM LEVELS AND PLUS OR MINUS 10 BY OTHER MEASURES IT IS POSSIBLE FOR AN EXPIRED PILL THAT IS READY FOR THE TRASH TO BE MORE POTENT THAN A SIMILAR PILL THAT HAS JUST BEEN PUT UP FOR SALE PICKING EXPIRATION DATES IS UNIVERSALLY DESCRIBED AS A JUDGMENT CALL AND APPEARS TO BE AS MUCH ART AS SCIENCE JANNE WHISSEL DIRECTOR OF REGULATORY AFFAIRS FOR ALZA CORP BELIEVES MOST COMPANIES AIM FOR THREEYEAR DATING BUT SOMETIMES THE WEAR AND TEAR ON THE PACKAGE RATHER THAN WHAT HAS HAPPENED TO THE DRUG AFFECTS THE DETERMINATION IT'S WHATEVER MAKES SENSE MS WHISSEL SAYS TOM WHITE OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION ESTIMATES DRUG DATING TO AVERAGE TWO TO THREE YEARS MAXIMUM DATING IS FIVE YEARS HE SAYS FDA OFFICIAL TERRY MUNSON EXPLAINS THAT THE REGULATIONS DO NOT ACTUALLY SPECIFY A MAXIMUM DURATION HE BELIEVES MOST COMPANIES TRY TO BALANCE PRODUCTION WITH DEMAND IN ORDER TO AVOID INVENTORY COSTS IN CALIFORNIA PHARMACISTS HAVE THE LEGAL AUTHORITY TO SHORTEN THE EXPIRATION DATE GIVEN BY THE MANUFACTURER WHEN FILLING A PRESCRIPTION AS LONG AS THERE IS NO ATTEMPT TO DEFRAUD THE PATIENT HERE A GUESS IS MADE ABOUT THE LIKELIHOOD OF SUBOPTIMAL STORAGE AT HOME AFFECTING DRUG STABILITY THE TYPICAL BATHROOM MEDICINE CHEST AND WINDOWSILL ARE THE WORST PLACES TO KEEP MEDICATIONS SINCE HEAT LIGHT AND MOISTURE CAUSE THE MOST HARM BUT WHAT'S ALLEGED TO BE GOOD FOR PATIENT SAFETY ALSO BOOSTS SALES FURTHERMORE PHARMACISTS CAN OFTEN RETURN EXPIRED PILLS TO THE MANUFACTURER FOR CREDIT BUT PATIENTS DON'T HAVE THAT LUXURY THE COST CAN BE SIGNIFICANT WITH THE RETAIL PRICE OF SOME ANTIBIOTICS NOW REACHING 8 PER DOSE SHORTER DATING MAY ALSO ENCOURAGE CUSTOMERS TO BUY SMALLER AND CONSEQUENTLY LESS ECONOMICAL QUANTITIES OF PILLS THIS IS MOST LIKELY TO OCCUR IN THE OVERTHECOUNTER MARKET HOW SAFE THEREFORE IS IT TO USE EXPIRED DRUGS AND HOW MORAL IS THE COMMON PRACTICE OF SENDING THEM TO THIRD WORLD COUNTRIES THAT MAY OTHERWISE HAVE NO ALTERNATIVE SUPPLIES COMMON SENSE TELLS US THAT ALL DRUGS AREN'T ALIKE IN IMPORTANCE NOR ARE THE CONDITIONS FOR WHICH THEY ARE USED EQUALLY SERIOUS EVEN SO AS HARRY AMBRUNN A CALIFORNIA RETAIL PHARMACIST PUTS IT NO MANUFACTURER WILL EVER PUBLICLY ADMIT THAT A PILL OF ANY KIND IS EITHER SAFE OR EFFECTIVE THE DAY AFTER ITS FDAAPPROVED EXPIRATION DATE PRIVATELY MANY DRUG COMPANY REPRESENTATIVES ADVISE A SIXMONTHBEYONDEXPIRATION RULE OF THUMB FOR PRESCRIPTION DRUGS AND ASPIRIN THAT LOOKS FEELS AND SMELLS ALL RIGHT IS PROBABLY OK TO TAKE ALTHOUGH IT WOULD CLEARLY BE FOOLISH TO TAKE CHANCES WHEN TREATING SERIOUS DISEASE PATIENTS CAN READILY SELFCHECK THE EFFECTIVENESS OF PAIN PILLS EVEN BLOOD PRESSURE CAN BE MONITORED BY SOME PATIENTS WE MAY YET HAVE THE EQUIVALENT OF A DAYOLDBREAD COUNTER IN THE CORNER DRUGSTORE BUT IT WOULD TAKE A LOT FOR THAT TO HAPPEN NEITHER MANUFACTURERS NOR THE FDA IS MOTIVATED TO INVESTIGATE WHY EXPIRED PILLS SOLD IN THE ILLEGAL GRAY MARKET HAVEN'T PRODUCED COMPELLING EVIDENCE OF WIDESPREAD HARM NOR IS IT CLEAR WHY SENDING DRUGS THAT ARE LESS THAN A YEAR OUTOFDATE TO THIRD WORLD COUNTRIES TROUBLES MORE PHARMACISTS THAN PHYSICIANS IN THE CURRENT LITIGIOUS CLIMATE NO PROFESSIONAL CAN COMFORTABLY AUTHORIZE USING ANY DRUGPRESCRIPTION OR OVERTHECOUNTER THAT HAS EXPIRED LAWSUITS HAVE BEEN WON AGAINST DOCTORS WHO INADVERTENTLY SUPPLIED OUTDATED SAMPLES TO PATIENTS WHETHER OR NOT IT COULD BE DEMONSTRATED THAT THE PILLS WERE THE DIRECT CAUSE OF THE PROBLEM FOR THESE MANY REASONS THE RATIONALITY AND ECONOMICS OF DRUG DATING RECEIVE LITTLE PUBLIC ATTENTION STANFORD PHARMACOLOGY PROF KENNETH MELMAN AND OTHERS IN THE FIELD AGREE THAT NEITHER INDUSTRY NOR THE GOVERNMENT COMPILES THE RELEVANT GLOBAL FIGURES THE SOLE EXCEPTION IS A SMALL PROJECT WITHIN THE FDA THAT TESTS DRUGS FOR MUCH LONGER PERIODS FOR THE MILITARY THE MEDICAL PRODUCTS QUALITY ASSURANCE PROJECT OF THE FDA HAS FOUND THAT SINCE ITS INCEPTION IN 1985 SOME DRUGS MANUFACTURED IN 1981 AND EXPIRED IN 1984 ARE STILL FULLY POTENT DRUGS TESTED INCLUDE ULCER DRUGS ANTIBIOTICS AND PAINKILLERS FRANK FLAHERTY A PHARMACIST AND DIRECTOR OF THE PROJECT STAFF ESTIMATES THAT THE PROGRAM HAS SAVED HUNDREDS OF MILLIONS OF DOLLARS FOR THE PENTAGON AS THE NATION'S ANNUAL HEALTH BILL APPROACHES A TRILLION DOLLARS ALL COMPONENTS OF THAT BILL DESERVE TO BE EXAMINED FOR UNNECESSARY WASTE EXPIRED DRUGS ARE ONE PLACE TO START DR ALPER IS AN INTERNIST IN BURLINGAME CALIF SEE RELATED LETTER LETTERS TO THE EDITOR EXPIRED' DRUGS SAVE MILLIONS OF LIVES WSJ MARCH 12 1993 9302110013 9303170019 930225 LEISURE & ARTS BOOKSHELF YALE'S DR DOOM LOOKS INTO THE IMPOVERISHED FUTURE BY GEORGE GILDER IN A GIDDY MOMENT OF BRAVADO EARLY ON IN PREPARING FOR THE 21ST CENTURY RANDOM HOUSE 448 PAGES 25 YALE HISTORY PROF PAUL KENNEDY IMPLICITLY DENIES HIS LATEST WORK COULD HAVE BEEN WRITTEN BY A ROBOT AS IN HIS BESTSELLING RISE AND FALL OF THE GREAT NATIONS A TRACT ON AMERICAN DECLINE PUBLISHED IN THE WAKE OF THE SOVIET COLLAPSE AND ON THE EVE OF THE GULF WAR MR KENNEDY IS QUITE WRONG A ROBOT COULD READILY HAVE COMPOSED THIS RELENTLESS DOWNLOAD OF DOOMLADEN LORE FROM THE IVY LEAGUE JUST PROGRAM THE PROCESSOR TO ADD SOMBER MORALISMS TO THE FIRST PARAGRAPHS OF FRONTPAGE THINK PIECES IN THE NEW YORK TIMES OF FIVE YEARS AGO WHEN PEOPLE STILL BELIEVED DEVOUTLY IN THE GLOBALWARMING CRISIS IN THE CATACLYSMIC PORTENTS OF THE TRADE GAP IN THE IMPENDING COLLAPSE OF THE US MICROCHIP AND COMPUTER INDUSTRIES IN THE CREEPING SECRETIONS OF NUCLEAR WASTE AND IN THE INEXORABLE ASCENDANCY OF SEMISOCIALIST WELFARE STATES SUCH AS GERMANY AND SWEDEN MR KENNEDY'S WORK COULD WELL BE SUMMED UP BY THE PARODY HEADLINE END OF THE WORLD AT HAND WILL WIDEN GAP BETWEEN RICH AND POOR HIGHER TAXES NEEDED SINCE MR KENNEDY IS A BELOVED LIBERAL HISTORIAN IT IS UNREASONABLE TO ASK HIM TO KEEP UP WITH LEADINGEDGE SCIENCE TECHNOLOGY AND ECONOMICS AND IN PREPARING FOR THE 21ST CENTURY HE RETURNS TO THE 18TH CENTURY TO PRESENT HIMSELF AS A KIND OF MALTHUS REDUX A SECOND COMING OF PASTOR THOMAS MALTHUS MALTHUS DECLARED IN 1798 THAT THE POWER OF POPULATION HUGELY EXCEEDS THE POWER OF THE EARTH TO PRODUCE SUBSISTENCE AND FORECAST A GIGANTIC INEVITABLE FAMINE MALTHUS WAS ENTIRELY WRONG ON THAT POINT FOOD PRODUCTION HAS FAR OUTSTRIPPED POPULATION GROWTH EVER SINCE MALTHUS FAILED TO GRASP THAT IT IS NOT THE EARTH BUT MAN THAT PRODUCES FOOD BUT ACCORDING TO MR KENNEDY MALTHUS WAS MERELY OFF ON HIS TIMING BRITAIN ESCAPED FAMINE CHIEFLY BY AN EVENTUAL 19THCENTURY EMIGRATION OF SOME 20 MILLION PEOPLE WITHOUT THIS MASSIVE EMIGRATION TO THE EMPIRE MR KENNEDY AVERS THE BRITISH POPULATION WOULD HAVE BEEN 70 MILLION RATHER THAN 40 MILLION IN 1900 AND THE PREDICTED FAMINES WOULD HAVE OCCURRED YOU RECALL DON'T YOU THE EVER INTENSIFYING HUNGER PLAGUES IN GERMANY HOLLAND SWEDEN JAPAN AND OTHER INDUSTRIAL COUNTRIES WITHOUT LARGE EMPIRES BRITAIN WAS FURTHER SAVED FROM FAMINE BY AGRICULTURAL REVOLUTION WHICH ENLARGED THE OUTPUT OF BRITISH FARMS AND BY INDUSTRIAL REVOLUTION WHICH ENHANCED THE PRODUCTIVITY OF WORKERS INDUSTRY ALLOWED THE BRITISH TO FOIST MANUFACTURED BAUBLES ON THE COLONIES IN EXCHANGE FOR LIFESAVING IMPORTS OF FOOD THE SITUATION IS SIMILAR TODAY WITH BIOTECHNOLOGY AND ROBOTICS BREAKTHROUGHS IN STORE TO PLAY THE ROLE OF THE AGRICULTURAL AND INDUSTRIAL REVOLUTIONS OF THE 19TH CENTURY BUT ACCORDING TO MR KENNEDY THE PRESENT WORLD CANNOT ACHIEVE A SIMILAR DELIVERANCE THERE IS NO OTHER AVAILABLE PLANET TO COLONIZE AND EXISTING RICH NATIONS WILL NOT ACCEPT MASSES OF REFUGEES FROM THE THIRD WORLD INSTEAD OF EMIGRATION ACCORDING TO MR KENNEDY THE MODERN WORLD GIVES US MULTINATIONAL CORPORATIONS THAT EXPLOIT AND POLLUTE THIRD WORLD COUNTRIES AND UNDERMINE THE PRECIOUS TAXING POWERS OF THE NATION STATE THE WORLD IS LEFT WITH THE PROMISE OF A NEW AGRICULTURAL REVOLUTION IN BIOTECH AND A NEW INDUSTRIAL REVOLUTION IN ROBOTICS ACCORDING TO MR KENNEDY BIOTECH WILL DO NO GOOD BECAUSE THE CENTER OF BIOTECH PRODUCTION IS IN THE RICH COUNTRIES WHILE THE THREAT OF FAMINE IS IN THE THIRD WORLD BIOTECH MAY EVEN EXACERBATE THE PROBLEM BY SUPPLANTING NATURAL COMMODITIES NOW PRODUCED BY PEASANT FARMERS ROBOTICS TO MR KENNEDY PRESENTS A SIMILARLY GRIM PROSPECT NOT ONLY ARE MOST ROBOTS IN JAPAN BUT THEY THREATEN TO DEVALUE THE ONE ASSET OF THE THIRD WORLDITS THRONGS OF LABOR PREPARING FOR THE 21ST CENTURY ENDS WITH A LONG SECTION ANALYZING THE IMPACT OF LIKELY DISASTERS ON DIFFERENT COUNTRIES MR KENNEDY'S GENERAL CONCLUSION IS THAT THE RICH ARE GETTING RICHER AND THE POOR POORER HE APPEARS INCAPABLE OF IMAGINING HOW ANY COUNTRY NOT ALREADY RICH COULD BECOME RICH EXCEPT POSSIBLY THROUGH FOREIGN AID SHORTAGE OF CAPITAL IS SEEN AS A PROHIBITIVE PROBLEM BY THAT STANDARD OF COURSE NO POOR NATION COULD EVER HAVE ESCAPED POVERTY FOR HIM THE ONLY ANSWERS ARE IN YET MORE REDISTRIBUTIVE SOCIALISM TAXATION REGULATION AND BUREAUCRACY HE CONTENDS THAT THE CHINESE AND INDIANS COULD ATTAIN A WESTERN STANDARD OF LIVING ONLY AT THE COST OF ECOLOGICAL RUIN MR KENNEDY FAILS TO SEE THAT SOCIALIST COUNTRIES BY BARRING THE REDEMPTIVE SURPRISES OF HUMAN CREATIVITY WREAK ENVIRONMENTAL HAVOC WHEREVER THEY HOLD POWER YOU HAVE ONLY TO CONSIDER AFRICA OR EASTERN EUROPE BUT CAPITALIST GROWTH IS BASED ON AN ENVIRONMENTALLY BENIGN REPLACEMENT OF MATTER AND ENERGY WITH KNOWLEDGE AND INGENUITY EVERY YEAR ENTREPRENEURIAL FORCES YIELD MORE ENERGYEFFICIENT AND INFORMATIONINTENSIVE MEANS OF PRODUCTION MADE OF THE THREE MOST COMMON SUBSTANCES IN THE EARTH'S CRUSTSILICON OXYGEN AND ALUMINUMMICROCHIPS HAVE BEEN THE DRIVING FORCE OF CAPITALIST GROWTH FOR 20 YEARS MICROCHIP TECHNOLOGY IS NOW CONVERGING WITH FIBER OPTICS ALSO ESSENTIALLY MADE OF SILICON TO CREATE A NEW INFORMATION ECONOMY IN THE FORM OF COMPUTERS LINKED WITH FIBER OPTICS ALLOWING TELECOMMUTING HOME SCHOOLS AND REMOTE HEALTH CARE SAND AND GLASS REPLACE OIL AND COAL HOSPITAL BEDS AND CENTRALIZED MEDICINE INEFFECTIVELY CENTRALIZED SCHOOLS AND COLLEGES ENVIRONMENTALLY WASTEFUL AGRICULTURE AND CULTURALLY EROSIVE TELEVISION AND ENTERTAINMENT COMBINED WITH BIOTECH THESE HUMAN ADVANCES ARE PRECISELY TARGETED TO OVERCOME MOST OF THE PROBLEMS THAT MR KENNEDY BEMOANS AND MISUNDERSTANDS YET IN HIS PERNICIOUS CONDEMNATION OF ANY TOOLS THAT MAY EXPAND THE GAP BETWEEN THE RICH AND POOR MR KENNEDY SEES INNOVATION AS A THREAT RATHER THAN A SOLUTION ANY OF THE TOOLS BY WHICH HUMAN BEINGS ESCAPED THE MUCK TO RULE THE WORLD INITIALLY INCREASED THE GAP BETWEEN THE INVENTORS OF THE TOOLS AND THE RUN OF THE POPULATION THAT'S LIFE HUMAN ADVANCES ARE ALWAYS THE RESULT OF HEROIC INDIVIDUAL EFFORT AND SACRIFICE WITH THE VERY PEOPLE WHO HAVE PROVEN THEIR ABILITY TO CREATE WEALTH PUT IN CHARGE OF REINVESTING IT TAX THE SURPLUS AWAY AND GIVE IT TO GOVERNMENT AND YOU HAVE STAGNATION AND DECLINE MR KENNEDY'S POSITION WOULD HAVE HALTED NEARLY ALL HUMAN DEVELOPMENT THROUGHOUT HISTORY EQUALLY OBTUSE IS HIS BELIEF THAT TECHNOLOGY DESTROYS JOBS DURING THE PAST 30 YEARS THE US HAS LED THE WORLD BOTH IN TECHNOLOGY AND IN JOBS DEPLOYING THREE TIMES AS MUCH COMPUTER POWER PER CAPITA AS JAPAN OR EUROPE THE US CREATED SOME 35 MILLION NEW JOBS AUTOMATION IS ITS OWN REMEDY BY ENHANCING THE PRODUCTIVITY OF WORKERS TECHNOLOGY MAKES THEM MORE EMPLOYABLE AND THUS CREATES MORE EMPLOYMENT BY CREATING WEALTH TECHNOLOGY ENDOWS NEW WORK WHETHER AT THE TIME OF MALTHUS OR IN ANY OTHER ERA THE PROSPECTS OF HUMANITY ALWAYS SEEM DIRE TO PEOPLE WHO CANNOT IMAGINE THE EXPONENTIAL BOUNTIES OF TECHNOLOGICAL ADVANCE HUMAN CREATIVITY ALWAYS COMES AS A SURPRISE TO US IF IT DIDN'T WE COULD PLAN IT AND IT WOULDN'T BE NEEDED HUMAN BEINGS NOW MASTER THE FIRMAMENT AND OVERRUN THE PLANET ONLY BECAUSE WE ARE THE SUPREME CREATORS OF NEW TOOLS IF NEW TOOLS ARE EXCLUDED FROM THE FORECAST THE HUMAN RACE WILL OBVIOUSLY HAVE TO PACK UP AND GO HOME TO YALE OR SOME OTHER ACADEMIC EDEN TO WORSHIP CONDOMS ABORTIONS AND OTHER APPROPRIATE TECHNOLOGY UNTIL THE ENTROPIC END THE FACT IS HOWEVER THAT THE POWERS OF MAN THE TOOLMAKER ARE FAR GREATER TODAY THAN AT ANY OTHER TIME IN HUMAN HISTORY THE TECHNOLOGIES OF COMPUTERS AND COMMUNICATIONS WILL EACH ADVANCE ROUGHLY A MILLIONFOLD IN COST EFFECTIVENESS IN THE NEXT 10 YEARS THEY MAKE HASH OF ALL LINEAR PROJECTIONS OF ENVIRONMENTAL DISASTER BIOTECH BOGGLES ALL SPECULATIONS ABOUT FOOD SCARCITY AND POPULATION EXPLOSION THE DANGER COMES FROM AN ENERVATED ACADEMY THAT IS FOISTING ITS NIHILIST FUTILITIES AND SOCIAL FADS ON THE WORLD MR GILDER IS A FELLOW AT THE DISCOVERY INSTITUTE IN SEATTLE SEE RELATED LETTERS LETTERS TO THE EDITOR DON'T COUNT CHICKENS WHEN THEY'RE STILL EGGS WSJ MARCH 16 1993 9302250125 9303170005 930205 INFORMED RETIREES BACK ENTITLEMENT CUTS BY JOHN STOSSEL SUNDAY AS I LISTENED TO SENATORS DERIDE LEON PANETTA'S PROPOSED SOCIAL SECURITY CUTS AS A DEATH WISH TO BE FORGOTTEN RIGHT NOW I WONDERED IF VOTERS ONCE INFORMED WOULD BE AS RESISTANT AS THE SENATORS FEAR LAST FALL ABC'S 20/20 ASSEMBLED A GROUP OF 50 AFFLUENT SENIORS FROM A RETIREMENT COMMUNITY IN MARYLAND SAYING WE WANTED TO INTERVIEW THEM ABOUT THE DEFICIT INITIALLY MOST SAID THAT WHILE THEY DID WANT THE DEFICIT REDUCED SOCIAL SECURITY AND MEDICARE SHOULD NEVER BE TOUCHED SOCIAL SECURITY WAS AN INSURANCE POLICY THEY SAID THEY'D PAID THEIR DUES AND NOW DESERVED THEIR ENTITLEMENT A 75YEAROLD MAN SAID I'LL NEVER FORGET WHEN IT STARTED THE FIRST WEEK THEY TOOK 60 CENTS OUT OF MY SALARY AND I'VE BEEN PAYING EVER SINCE AND I AM NEVER GOING TO GIVE ANY OF IT BACK MOST OF THE SENIORS SAID THEY WOULD NEVER LIVE LONG ENOUGH TO RECOVER THE MONEY THEY'D PAID IN SOME THOUGHT THEY'D BE PAID BACK ONLY IF THEY LIVED ANOTHER 30 YEARS THEN WE GAVE THEM SOME FACTS FROM THE CONGRESSIONAL RESEARCH SERVICE AND THE CONGRESSIONAL BUDGET OFFICE THEY PAID IN LESS THAN THEY THOUGHT THOSE WHO RETIRED 10 YEARS AGO MOST OF THIS GROUP HAD RECOVERED EVERYTHING THEY PAID IN PLUS INTEREST THREE YEARS AFTER RETIREMENT IN ESSENCE SINCE THEN THEY HAD BEEN COLLECTING WELFARE WHEN THE ROOSEVELT ADMINISTRATION CREATED SOCIAL SECURITY LIFE EXPECTANCY WAS LESS THEN 60 YEARS BY 1940 IT REACHED ONLY 63 YEARS IN OTHER WORDS WHEN SOCIAL SECURITY GUARANTEES WERE MADE IT WAS EXPECTED THAT MOST AMERICANS WOULDN'T COLLECT ANYTHING NOW THE AVERAGE LIFE SPAN IS 75 YEARS AND RISING YES SOCIAL SECURITY IS IN SURPLUS NOW BUT ONLY BECAUSE OF THE BABY BOOM WHEN THE BABYBOOM GENERATION RETIRES IT WILL REQUIRE HUGE TAX INCREASES OR PAYMENT CUTS TO KEEP SOCIAL SECURITY AND MEDICARE GOING WHEN SOCIAL SECURITY BEGAN SENIORS WERE THE POOREST AMERICANS TODAY THEY ARE THE WEALTHIEST AGE GROUP ABOUT 70 BILLION IN MEDICARE AND SOCIAL SECURITY GOES TO HOUSEHOLDS WITH CASH INCOMES EXCEEDING 50000 A YEAR THE OFFICE OF MANAGEMENT AND BUDGET SAYS THAT FISCAL 1992 ENTITLEMENTS WERE 528 OF THE TOTAL BUDGET SOCIAL SECURITY COSTS ACCOUNTED FOR 21 OF THOSE PERCENTAGE POINTS A BIG CHUNK OF THE ENTITLEMENTS SLICE OF THE PIE ONLY ENTITLEMENTS ARE BIG ENOUGH TO MAKE A DIFFERENCE FURTHERMORE LARGELY BECAUSE OF MEDICARE ENTITLEMENTS ARE THE FASTEST GROWING SLICE OF THE PIE IN THE TWO DECADES BEFORE 1990 REAL SPENDING ON ENTITLEMENTS GREW BY MORE THAN 6 A YEAR THE ECONOMY BY 27 A YEAR ONCE THE SENIORS HEARD THIS ATTITUDES CHANGED ELDERLY MAN WHY NOT I MEAN GOOD HEAVENS I'VE GOT ENOUGH ELDERLY WOMAN IF THERE ARE THOSE THAT ARE MORE NEEDY I WOULD BE MORE THAN WILLING TO GIVE I WANT THIS COUNTRY TO BE WHERE IT SHOULD BE ANOTHER WOMAN I WOULD DEFINITELY GIVE BACK PART OF MY SOCIAL SECURITY IF WE COULD HELP SOME OF THE CHILDREN THEN I INTERVIEWED HORACE DEETS PRESIDENT OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND WAS SURPRISED TO HEAR THAT EVEN THE SENIOR LOBBY MAY BE WILLING TO COMPROMISE HORACE DEETS LISTEN WE'RE NOT THE PEOPLE WHO ARE GIVING OVER THE BELIEF THAT YOU CAN HAVE EVERYTHING YOU WANT AND NEVER PAY I MEAN THAT'S BEEN A POPULAR THEME FOR THE PAST 12 YEARS AND THERE IS NO SANTA CLAUS AND WE'RE GOING TO HAVE TO TAKE A LOOK AT THE ENTIRE BUDGET AND I'M NOT SAYING ENTITLEMENTS SHOULDN'T BE PART OF IT I BROADCAST THIS REPORT WITH TREPIDATION WOULD VIEWERS LURCH FOR THEIR REMOTE CONTROLS TO AVOID TALK OF DEFICITS THEY DIDN'T AND MORE THAN A THOUSAND PEOPLE WROTE US THERE WERE PLENTY OF ANGRY LETTERS EVEN THREATS STOSSEL WILL PAY A VERY DEAR PRICE THE NEXT TIME AROUND HE'S PUTTING HIS LIFE ON THE LINE UNSIGNED BUT FROM PEOPLE WHO ABSORBED THE STATISTICS THE RESPONSE WAS ENCOURAGING THANKS FOR SHOWING THE TRUTH PEOPLE NEED TO KNOW ENTITLEMENTS ARE GOING TO RUIN US UNLESS PEOPLE GET EXCITED ABOUT THIS KATHY TAYLOR SCOTTSDALE ARIZ LOOKS AS THOUGH AARP WOULD RATHER THE COUNTRY GO DOWN THE DRAIN THAN TELL ITS MEMBERS THE TRUTH ABOUT PROBLEMS WITH THE TRUST FUND AND I BELONG TO THAT ORGANIZATION JUDITH MCALOON SPRINGFIELD VA I WILL RECEIVE MY FIRST SOCIAL SECURITY CHECK NEXT MONTH WHILE I AM NOT WEALTHY MY INCOME WILL CAUSE ME TO PAY TAXES ON 50 OF MY SOCIAL SECURITY BENEFIT MY FEELING IS THAT ANYONE WHO RECEIVES SOCIAL SECURITY SHOULD BE TAXED ON THEIR TOTAL INCOME THE AARP AND OTHER SENIOR ACTION GROUPS CANNOT BE ALLOWED TO FISCALLY DESTROY OUR COUNTRY JOE A STEPHENS JR GRAND MARAIS MINN WE CANNOT BEGIN TO DEAL WITH THE TWOHEADED MONSTER OF POVERTY AND RACIAL DIVISION THAT IS DESTROYING THE SOUL OF THIS NATION UNTIL WE DEAL WITH THE DEFICIT AND WE CANNOT DEAL WITH THE DEFICIT UNLESS WE ADDRESS SPENDING ON ENTITLEMENTS LOIS SNYDER PHILADELPHIA PERHAPS IF VOTERS ARE INFORMED DEALING WITH ENTITLEMENTS NEED NOT BE A DEATH WISH MR STOSSEL IS A CORRESPONDENT FOR ABC'S 20/20 SEE RELATED LETTER LETTERS TO THE EDITOR KEEP FEDERAL HANDS OFF SOCIAL SECURITY FUNDS WSJ MARCH 12 1993 9302050088 9303160164 930316 WHO'S NEWS MARGARETTEN FINANCIAL CORP MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ TERRENCE H WILLIAMS 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND NATIONAL PRODUCTION MANAGER RETAIL OVERSEEING MARGARETTEN'S MORTGAGE ORIGINATION SYSTEM HE HAD BEEN EXECUTIVE VICE PRESIDENT FOR RESIDENTIAL PRODUCTION OPERATIONS AT GMAC MORTAGE CORP A UNIT OF GENERAL MOTORS CORP 9303160163 930316 CREDIT MARKETS BOND PRICES CONTINUE TO DECLINE AS INVESTORS DECIDE BEST NEWS ON INFLATION IS ALREADY PAST BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK CONCERNS ABOUT INFLATION RATTLED THE TREASURY MARKET FOR THE SECOND CONSECUTIVE SESSION YESTERDAY AS PRICES OF MOST MATURITIES ENDED WITH MODERATE LOSSES THE GROWING BELIEF THAT THE BEST NEWS ON INFLATION IS ALREADY HISTORY CAME AS THE MARKET CONTINUED TO HEAD LOWER IN WHAT PARTICIPANTS TERMED A CORRECTION OF THE RECENT RALLY TO RECORD LOW YIELDS THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 3/8 POINT TO 102 28/32 TO YIELD 689 UP FROM 686 ON FRIDAY THE 10YEAR NOTE DROPPED LESS THAN 1/4 POINT TO 100 25/32 TO YIELD 613 UP FROM 611 THE MARKET BEGAN THE DAY ON A FIRM NOTE HELPED BY STATEMENTS MADE OVER THE WEEKEND BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN THE FED CHAIRMAN TERMED THE ECONOMIC EXPANSION TENTATIVE AND SAID THE 365000JOB SURGE IN FEBRUARY NONFARM PAYROLL EMPLOYMENT REPORTED MARCH 5 OVERSTATED THE HEALTH OF THE JOB MARKET THINGS LOOKED ALL RIGHT IN THE MORNING NOTED ALAN LEVENSON A MONEY MARKET ECONOMIST AT UBS SECURITIES INC HOWEVER THE TREASURY MARKET HAD THE RUG YANKED OUT FROM UNDER IT AS THE COMMODITIES RESEARCH BUREAU'S INDEX OF 21 COMMODITY PRICES SURGED THE CRB INDEX A WIDELY WATCHED INFLATION BAROMETER ENDED 240 HIGHER AT 21019 THE SELLING PRESSURE WAS CAUSED BY THE CRB SAID KEVIN FLANAGAN A MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC MR FLANAGAN AND OTHER ANALYSTS WARNED THAT THE RISE IN THE CRB INDEX YESTERDAY WAS MOSTLY DUE TO A SURGE IN ARGICULTURAL COMPONENTS IN THE WAKE OF THE STORM THAT PLOWED THROUGH THE EAST COAST OVER THE WEEKEND IT DID NOT REFLECT AN UNDERLYING JUMP IN INFLATION PRESSURES CAUSED BY A FASTER PACE OF ECONOMIC GROWTH THEY SAID THE RISE HAS NOTHING TO DO WITH DEMAND MR FLANAGAN SAID IT WAS MOSTLY CONCERNS OVER THE BLIZZARD BUT THE MARKET BRUSHED ASIDE THE REASONS FOR THE RISE IN THE CRB AND INSTEAD VIEWED IT IN THE NEGATIVE LIGHT OF LAST FRIDAY'S UNEXPECTEDLY STRONG PRODUCER PRICE INDEX REPORT FOR FEBRUARY THAT REPORT DIMMED HOPE THAT INFLATION MIGHT CONTINUE TO FALL THIS YEAR THE NOTION THAT WE COULD HAVE DECLINING INFLATION WHILE WE ARE HAVING 3 GROWTH HAS BEEN DEALT A HEAVY BLOW SAID MR LEVENSON OF UBS DEAN WITTER'S MR FLANAGAN SAID THE MARKET IS GOING THROUGH A REASSESSMENT OF THE INFLATION OUTLOOK THE MARKET IS SEEING THAT MAYBE WE WON'T HAVE FURTHER IMPROVEMENT IN INFLATION HOWEVER MR FLANAGAN SAYS THAT PRICE PRESSURES ARE NOT LIKELY TO SKYROCKET EITHER ADDING WE'LL PROBABLY JUST HANG AT ABOUT A 3 RATE ACTIVITY YESTERDAY WAS DESCRIBED AS THIN AND DOMINATED BY SHORTTERM SPECULATIVE TRADERS INSTITUTIONAL INVESTORS WERE MOSTLY QUIET TRADERS SAID THE MARKET WAS BASICALLY A LOWVOLUME AFFAIR FOR MOST OF THE DAY SAID ANDREW O'FLAHERTY A GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC MOST PARTICIPANTS VIEWED YESTERDAY'S DECLINES AS PART OF THE CORRECTION OF THE LATEST RALLY THE MARKET HAS MOVED TO NEW LEVELS AND IS TRYING TO POUND OUT SOME NEW RANGES SAID BOB MCCORKLE A DEALER AT SEATTLE NORTHWEST SECURITIES AS THE MARKET HAS HEADED LOWER TRADERS NOTED THAT SOME OF THE EXTERNAL FACTORS THAT HAD BEEN SUPPORTING TREASURYS HAVE EITHER REVERSED OR SIMPLY DRIED UP AMONG THE POSITIVE INFLUENCES THAT HAVE EVAPORATED ARE MUNICIPAL DEFEASANCE PROGRAMS FOR WEEKS STATE AND LOCAL GOVERNMENTS HAD BEEN TAKING ADVANTAGE OF THE LOWER RATE ENVIRONMENT BY ISSUING NEW SECURITIES TO HELP PAY OFF OLDER HIGH INTEREST DEBT UNDER THE PROGRAMS PROCEEDS FROM THE NEW DEBT ARE INVESTED IN TREASURYS UNTIL THE OUSTANDING DEBT CAN BE CALLED BUT AS THE TREASURY MARKET HAS FALTERED DEMAND FOR NEW MUNICIPAL DEBT HAS FADED A BIT THE BUYERS OF MUNICIPAL SECURITIES NEED A BREATHER AND AT LEAST FOR THE TIME BEING THAT TAKES AWAY THE DEFEASANCE BUYING SEATTLE NORTHWEST'S MR MCCORKLE SAID ANOTHER PROP THAT HAS BEEN KNOCKED OUT FROM UNDER THE MARKET HAS BEEN BUYING THAT ORIGINATED WITH THE MORTGAGEBACKED SECURITIES MARKET WITH LONGTERM YIELDS RISING FROM THEIR LOWS FEARS OF INCREASED PREPAYMENT RISK HAVE ABATED AND MORTGAGEBACKED TRADERS HAVE BEEN SELLING THE SEVENYEAR AND 10YEAR NOTES THEY HAD BOUGHT AS HEDGES LASTLY THE FALTERING OF THE RALLY IN THE TREASURY MARKET HAS LEFT CORPORATE DEALERS WITH UNSOLD INVENTORIES OF NEW CORPORATE BONDS THEY HEDGE THOSE BY SELLING TREASURYS THUS ADDING TO THE PRESSURE ON THE TREASURY MARKET THESE FORCES COMBINED WITH SOME SIGNS OF ECONOMIC STRENGTH AND A SENSE THAT ALL THE GOOD NEWS ON THE GOVERNMENT SPENDING FRONT HAS BEEN PRICED IN HAS RESULTED IN A SHIFT IN SENTIMENT FOR AT LEAST THE NEAR TERM PEOPLE ARE SELLING THE RISES IN PRICES RATHER THAN BUYING THE DIPS SAID MR LEVENSON OF UBS WITH THE MARKET UNNERVED BY THE INFLATION OUTLOOK ALL EYES ARE ON TOMORROW'S FEBRUARY CONSUMER PRICE INDEX REPORT THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR AN INCREASE IN THE CPI OF 03 BOTH WITH AND WITHOUT FOOD AND ENERGY FACTORED IN BUT BEFORE THE MARKET HAS TO CONTEND WITH MORE INFLATION NEWS THE COMMERCE DEPARTMENT WILL REPORT TODAY ON FEBRUARY HOUSING STARTS EXPECTATIONS CENTER ON STARTS RISING 45 TO A 1245 MILLION UNIT ANNUAL RATE AN ELECTRICAL FIRE AT GOLDMAN SACHS & CO A PRIMARY DEALER OF GOVERNMENT SECURITIES AND A BIG PLAYER IN OTHER BOND MARKETS SEEMED TO HAVE LITTLE EFFECT ON TRADING THE FIRE WHICH RESULTED IN THE EVACUATION OF SEVERAL FLOORS IN THE FIRM'S BUILDING WAS QUICKLY BROUGHT UNDER CONTROL MEANWHILE THE TREASURY SOLD 2336 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION YESTERDAY THE THREEMONTH BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 300 FOR A COUPONEQUIVALENT YIELD OF 306 COMPARED WITH 298 AND 304 RESPECTIVELY AT LAST WEEK'S AUCTION THE SIXMONTH BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 312 FOR A COUPONEQUIVALENT YIELD OF 321 COMPARED WITH 309 AND 318 RESPECTIVELY AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 18 THE 13WEEK BILLS MATURE JUNE 17 1993 AND THE 26WEEK BILLS MATURE SEPT 16 1993 PRICES FOR MANY MUNICIPAL BONDS DROPPED ON HEAVY SELLING YESTERDAY LOSING FROM 3/8 POINT TO 3/4 POINT WITH BOND YIELDS RISING ISSUERS AREN'T HURRYING TO THE MARKET AS THEY SEEMED TO BE DOING A FEW WEEKS AGO SOME OFFERINGS ON THIS WEEK'S CALENDAR HAVE BEEN PUT ON A DAYTODAY PRICING BASIS MEANWHILE BREVARD COUNTY FLA TODAY IS SCHEDULED TO HOLD A REFERENDUM OF WIDE MARKET INTEREST VOTERS WILL DECIDE WHETHER THE COUNTY WILL CONTINUE TO MAKE APPROPRIATION PAYMENTS ON 239 MILLION OF CERTIFICATES OF PARTICIPATION ISSUED IN 1989 TO FINANCE A NEW GOVERNMENT CENTER THE BREVARD COUNTY REFERENDUM'S OUTCOME COULD CAST A CLOUD OVER THE MARKET FOR CERTIFICATES OF PARTICIPATION COPS WHICH ARE USED BY MUNICIPAL ISSUERS TO FINANCE LEASES FOR PROPERTY AND EQUIPMENT NEARLY 14 BILLION OF COPS WERE ISSUED LAST YEAR IF BREVARD COUNTY VOTERS DECIDE TO END APPROPRIATION PAYMENTS FOR THE SECURITIES THE MUNICIPAL BOND INVESTORS ASSURANCE CORP WILL BE REQUIRED TO PAY BONDHOLDERS THE 239 MILLION A VOTE TO END PAYMENTS COULD HAVE WIDERANGING EFFECTS ON THE REST OF THE MUNICIPAL MARKET AND ESPECIALLY ON MUNI BOND INSURANCE COMPANIES MOST DEFAULT FEARS FOR MUNI BONDS INVOLVE ECONOMIC ELEMENTS LIKE FALLING REVENUES OR A SLUMPING ECONOMY BUT A VOTE TO END PAYMENTS IN BREVARD WOULD ADD A NEW DANGER TO THE LIST OF DEFAULT FACTORS LOCAL POLITICS GENERALLY BOND INSURERS DO NOT EXPECT TO MAKE ALL PAYMENTS FOR A DEFAULTED BOND THEY USUALLY EXPECT TO MEET PAYMENTS ONLY UNTIL THE ISSUER IS ABLE TO RESUME ITS REGULAR INTEREST PAYMENTS A POLITICAL DEFAULT IN BREVARD COUNTY HOWEVER COULD MEAN THAT THE BOND INSURER WOULD BE FORCED TO MAKE ALL PAYMENTS FOR THE ISSUE ONE SIZABLE ISSUE EMERGED YESTERDAY A SMITH BARNEY HARRIS UPHAM & CO GROUP PRICED THE PLATTE RIVER COLO POWER AUTHORITY'S 1496 MILLION OF REVENUE REFUNDING BONDS YIELDS RANGE FROM 260 IN 1994 TO 560 IN 2008 MOODY'S INVESTORS SERVICE INC HAS RATED THE ISSUE DOUBLEA AND STANDARD & POOR'S CORP HAS ASSIGNED A SINGLEAPLUS RATING IN SECONDARY TRADING THE JACKSONVILLE FLA ELECTRIC AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2013 CLOSED 1/2 POINT LOWER AT 96 1/4 THE YIELD FOR THOSE BONDS HAS RISEN TO 579 FROM 575 AT FRIDAY'S CLOSE LIKE TREASURY BONDS MUNIS ARE DECLINING BECAUSE OF PROFITTAKING AND INFLATION JITTERS TRADERS SAID PRICES OF CORPORATE BONDS FINISHED LOWER INVESTMENTGRADE BONDS FELL AS MUCH AS 5/8 POINT BEFORE REGAINING SOME GROUND LATER IN THE SESSION MEANWHILE JUNK BONDS ENDED LITTLE CHANGED ALTHOUGH TRADERS SAID A FIRM TONE CONTINUES TO PERCOLATE THROUGH DAILY BUSINESS JUNK TRADERS HAVE BEEN ABLE TO COUNT ON THE FINGERS OF ONE HAND THE NUMBER OF DAYS THIS YEAR THEIR MARKET ENDED LOWER MANY PREDICT INVESTORS' HUGE APPETITE FOR YIELD WILL CONTINUE TO DRIVE THE MARKET HIGHER BARRING A HUGE SELLOFF IN STOCKS INVESTOR PARTICIPATION IN BOTH THE HIGHGRADE AND HIGHYIELD MARKETS WAS SUBDUED DUE TO THE LINGERING EFFECTS OF THE BLIZZARD THAT WHIPPED THE EAST COAST OVER THE WEEKEND TRADERS SAID WITH MANY ACCOUNTS ON THE SIDELINES AND TREASURY YIELDS RISING THE PRIMARY MARKET SLOWED TO A CRAWL A HANDFUL OF DEALS BY FEDERAL AGENCIES PROVIDED THE SESSION'S ONLY NEW ISSUANCE UTILITIES WHICH ACCOUNTED FOR MUCH OF LAST WEEK'S 78 BILLION ISSUANCE ARE EXPECTED BE ACTIVE AGAIN THIS WEEK AMONG THE CANDIDATES MENTIONED BY DEALERS IS DETROIT EDISON CO BECAUSE UTILITY SPREADS WIDENED LAST WEEK THE NEXT FLURRY OF NEW BONDS SHOULD BE PRICED LESS EXPENSIVELY THAN THOSE BONDS PRICED A FEW WEEKS AGO PRICES OF MORTGAGEBACKED SECURITIES FINISHED LOWER PRICES OF CURRENT PRODUCTION 7 COUPONS FINISHED 6/32 TO 11/32 LOWER CURRENT PRODUCTION SECURITIES ARE THOSE MOST RECENTLY CREATED TRADERS SAID MORTGAGE BANKERS SOLD SECURITIES OUT OF THEIR PORTFOLIOS YESTERDAY THEY ATTRIBUTED THIS SELLING TO THE RECENT RISE OF BOND YIELDS WHICH IS LIKELY TO PULL MORTGAGE RATES HIGHER AS WELL MORTGAGE BANKERS WHO SOLD SECURITIES PROBABLY EXPECT CUSTOMERS TO HURRY TO LOCK IN RATES ON NEW MORTGAGE LOANS THIS RISING COMPLETION RATE MEANS NEW SUPPLY HAS TO BE MOVED INTO THE MORTGAGE SECURITIES MARKET BY MORTGAGE BANKERS THE PRIMARY MARKET IN MORTGAGEBACKED SECURITIES CAME ALIVE AGAIN YESTERDAY AS 18 BILLION IN NEW DEALS WAS ANNOUNCED THE DAY'S OFFERINGS INCLUDED ONE REAL ESTATE MORTGAGE INVESTMENT CONDUIT BACKED BY 20YEAR MORTGAGE LOANS THE FIRST TIME SUCH COLLATERAL HAS BEEN USED AMONG YESTERDAY'S REMICS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED THREE NEW DEALS TOTALING 800 MILLION WHILE FEDERAL HOME LOAN MORTGAGE CORP ANNOUNCED ONE NEW DEAL AND AN INCREASE TO AN EXISTING DEAL FOR A TOTAL OF 1 BILLION IN NEW PAPER CANDACE CUMBERBATCH AND TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303160162 930316 APRIL FOOL'S DAY COMES EARLY AT GM BUT IT'S NO JOKE MR LOPEZ RESIGNS RETURNS IS PROMOTED THEN RESIGNS NOT ENOUGH FRENCH FRIES BY PAUL INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT J IGNACIO LOPEZ DE ARRIORTUA GENERAL MOTORS CORP'S CONTROVERSIAL PURCHASING CZAR HAS CHANGED HIS MIND AGAIN JUST TWO HOURS BEFORE BEING NAMED TO RUN THE COMPANY'S CORE NORTH AMERICAN AUTO OPERATIONS MR LOPEZ RESIGNED FOR THE SECOND TIME IN JUST FIVE DAYS IT'S NOT CLEAR WHAT HIS INTENTIONS ARE OR WHERE HE IS AT THIS TIME A REDFACED JOHN F SMITH JR GM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID AT A NEWS CONFERENCE CALLED TO ANNOUNCE MR LOPEZ'S PROMOTION TO EXECUTIVE VICE PRESIDENT MAKING HIM ONE OF THE TOP SIX EXECUTIVES AT THE AUTO MAKER SOME REPORTERS INITIALLY THOUGHT THE STATEMENT WAS AN EARLY APRIL FOOL'S JOKE MR SMITH WHO APPEARED EXHAUSTED AS WELL AS EMBARRASSED HAD SPENT FRIDAY AND LAST WEEKEND PLEADING WITH MR LOPEZ TO REVERSE HIS DECISION TO QUIT GM FOR VOLKSWAGEN AG HE HAD OFFERED A LOT A BIG PROMOTION MORE PAY EVEN CONSIDERATION OF A NEW ASSEMBLY PLANT IN MR LOPEZ'S NATIVE BASQUE REGION OF SPAIN TO TEST THE LATEST LOPEZ THEORIES ON MANUFACTURING ACCORDING TO MR SMITH HE HIMSELF LED THE EFFORT TO RETAIN MR LOPEZ WITH THE GM BOARD PLAYING ONLY A SUPPORTING ROLE THE SALES PITCH SUCCEEDED OR SO MR SMITH BELIEVED ON SUNDAY GM ANNOUNCED THAT MR LOPEZ WHO HAD RESIGNED FROM THE COMPANY LAST THURSDAY WOULD NOW STAY WITH GM PERIOD IN A NEW AND HIGHER POST LATE YESTERDAY MORNING MR LOPEZ WAS IN HIS GM OFFICE IN AN APPARENTLY BUOYANT MOOD ACCEPTING CALLS OF CONGRATULATIONS AND GOOD WISHES FROM HIS GM COLLEAGUES BUT AT 230 PM MR SMITH RETURNED TO HIS OFFICE FROM A FACTORY VISIT TO FIND A LETTER FROM MR LOPEZ THE MESSAGE THE MERCURIAL SPANIARD HAD SWITCHED GEARS ONCE AGAIN AND WOULD BE LEAVING GM AFTER ALL I'M TERRIBLY DISAPPOINTED IN THE WAY THIS PLAYED OUT MR SMITH ANNOUNCED AT HIS PRESS CONFERENCE I THOUGHT WE HAD HIM BACK IN THE FOLD BUT NOW HE'S GONE IT ISN'T CLEAR WHETHER MR LOPEZ IS GOING TO VOLKSWAGEN VW OFFICIALS SAID THE COMPANY'S SUPERVISORY BOARD IS MEETING TODAY AND THAT A STATEMENT REGARDING NEW MANAGEMENT BOARD MEMBERS WOULDN'T BE MADE UNTIL THE MEETING IS OVER THE LASTMINUTE FLIPFLOP WAS JUST THE LATEST BIZARRE EPISODE FROM THE COLORFUL MR LOPEZ WHO WASN'T EVEN A GM OFFICER 10 MONTHS AGO BUT ROARED OUT OF OBSCURITY INTO THE COMPANY'S INNER CIRCLE AFTER SHARPLY CUTTING GM'S PURCHASING COSTS IN EUROPE WHERE HE HAD WORKED UNDER MR SMITH MR LOPEZ LANDED IN DETROIT LAST APRIL TO WORK HIS SAME MAGIC IN NORTH AMERICA HE IMMEDIATELY TORE UP CONTRACTS AND DEMANDED THAT GM'S PARTS SUPPLIERS AGREE TO DOUBLEDIGIT PRICE CUTS HE TOLD UNDERLINGS AND ASSOCIATES INCLUDING MR SMITH TO WEAR THEIR WATCHES ON THE RIGHT WRIST UNTIL GM RETURNS TO RECORD PROFITS HE CONVENED 630 AM LECTURES TO WARN ABOUT THE DECLINE OF AMERICAN CIVILIZATION AND TO DECLARE HIS LOYALTY TO MY HERO JACK SMITH WHOSE PICTURE HANGS ON HIS OFFICE WALL UNDERLINGS USED TO EXPENSEACCOUNT LUNCHES GOT A COPY OF MR LOPEZ'S 44PAGE BOOKLET TITLED FEEDING THE WARRIOR SPIRIT WHICH SAID THIS BATTLE FOR CONTROL OF YOUR FEEDING PROCEDURES IS THE MOST IMPORTANT YOU WILL WAGE THE BOOKLET WARNED OF THE DANGERS OF FRENCH FRIES AND COUNSELED A DIET OF FRUITS AND VEGETABLES BUT NOW THE MAN WHO TOOK DETROIT BY STORM IS GONE PRESUMABLY TO VOLKSWAGEN WHOSE EXECUTIVES WERE RAILING IN ANGER AGAINST GM LAST WEEKEND FOR STEALING MR LOPEZ FROM THEIR CLUTCHES HERE IS HOW THE LOPEZ SOAP OPERA PLAYED OUT EPISODE BY EPISODE THE FIRST OCCURS ON FEBRUARY 15 IN DER SPIEGEL THE GERMAN NEWSWEEKLY INAKI AS MR LOPEZ IS CALLED IS BEING ARDENTLY WOOED BY FERDINAND PIECH THE FLEDGLING CHAIRMAN OF VOLKSWAGEN MR PIECH KNOWS THAT VW'S OPERATIONS ARE PLAGUED BY HIGH COSTS AND HE WANTS AN AGGRESSIVE COSTCUTTER TO LEAD THE CHARGE FOR EFFICIENCY THE SCENE THEN SHIFTS TO DETROIT JACK SMITH WHO HAD ACTED AS A MENTOR TO MR LOPEZ IN EUROPE BEFORE BECOMING GM'S CEO AFTER A BOARDROOM REVOLT LAST MAY QUICKLY REALIZES THAT DER SPIEGEL WAS RIGHT VW WAS WOOING HIS MAIN MAN MR SMITH COUNTERS BY PROMOTING MR LOPEZ TO GROUP VICE PRESIDENT MAKING HIM ONE OF THE DOZEN TOP OFFICERS AT GM ALL IS WELL FOR A WEEK OR TWO BUT MR PIECH PROVES A PERSISTENT SUITOR THIS TIME HE OFFERS MR LOPEZ A SEAT ON VW'S MANAGING BOARD AND CONTROL OF VOLKSWAGEN'S MANUFACTURING OPERATIONS AROUND THE WORLD MR LOPEZ MEANWHILE REALIZES THAT HIS FAMILY MISSES EUROPE AND DOESN'T MUCH CARE FOR LIVING IN DETROIT HE CONSIDERS VW'S NEW OFFER EPISODE FOUR THE DETROIT RUMOR MILL STARTS SPINNING ABOUT MR LOPEZ'S DEPARTURE AGAIN AND MR SMITH GETS CAUGHT OFF GUARD THE GM CEO JETS OFF TO SWITZERLAND FOR THE GENEVA AUTO SHOW AND TELLS REPORTERS THAT HE IS PRETTY COMFORTABLE MR LOPEZ WILL STAY BACK IN DETROIT MR LOPEZ LANDS ON THE COVER OF AUTOMOTIVE INDUSTRIES MAGAZINE A LEADING TRADE JOURNAL AS MAN OF THE YEAR AT THE MAGAZINE'S LUNCH IN HIS HONOR HE TELLS REPORTERS THAT HE IS HAPPY WITH MR SMITH AND GM BUT CRYPTICALLY ADDS I'M NO PROPHET ON SATURDAY MARCH 6 MR LOPEZ ACTS AS HOST OF AN AWARDS PRESENTATION FOR GM'S TOP PARTS SUPPLIERS CAPPING THE DAY WITH AN ELEGANT BLACKTIE DINNER THE RUMORS THAT HE WILL BOLT CONTINUE TO MOUNT WHEN ON MONDAY MARCH 8 HE IS SPOTTED AT THE FRANKFURT AIRPORT GM EXECUTIVES SENSING HE WILL LEAVE START WHISPERING TO REPORTERS THAT MR LOPEZ'S PROCESSES ARE ALREADY IN PLACE AND ARE MORE IMPORTANT THAN THE MAN HIMSELF ON WEDNESDAY MARCH 10 MR LOPEZ FLIES BACK TO DETROIT FROM GERMANY WHERE HE HAD MET WITH MR PIECH HE TELLS MR SMITH THAT HE REALLY IS LEAVING BUT THE PRESIDENT ASKS HIM TO THINK ABOUT IT OVERNIGHT THE NEXT DAY THURSDAY MARCH 11 MR SMITH OFFERS TO PROMOTE MR LOPEZ TO EXECUTIVE VICE PRESIDENT AND GIVE HIM CONTROL OF GM'S CRUCIAL NORTH AMERICAN BUSINESS BUT MR LOPEZ CONFIRMS HIS DECISION TO DEPART MR SMITH EXPRESSES HIS REGRET AND ISSUES A PRESS RELEASE LAMENTING GM'S LOSS MR LOPEZ TELLS MEMBERS OF HIS STAFF ABOUT HIS PLANNED DEPARTURE AND MANY BURST INTO TEARS THAT NIGHT AT HOME MR SMITH'S PHONE STARTS TO RING WITH CALLER AFTER CALLER FROM WITHIN GM PLEADING WITH HIM TO TRY ONCE MORE TO KEEP MR LOPEZ SO ON THE MORNING OF FRIDAY MARCH 12 MR SMITH HEADS OUT TO MR LOPEZ'S HOUSE WITH TWO GM EXECUTIVE VICE PRESIDENTS HARRY PEARCE THE COMPANY'S TOP LAWYER AND G RICHARD WAGONER THE HEAD OF FINANCE THE THREE MEN TELL MR LOPEZ THEY ARE WILLING TO CONSIDER BUILDING A NEW ASSEMBLY PLANT IN SPAIN TO TEST PLATEAU SIX MR LOPEZ'S CODE NAME FOR A NEW WAY OF BUILDING CARS THAT LETS PARTS SUPPLIERS DO SOME OF THE ACTUAL ASSEMBLY WORK PLATEAU SIX IS SUPPOSED TO LET A CAR BE BUILT WITH JUST 10 HOURS OF LABOR HALF THE TIME REQUIRED BY TOYOTA WHICH MR LOPEZ REGARDS AS A THREAT TO WESTERN CIVILIZATION MR LOPEZ SAYS HE WILL THINK THINGS OVER ON FRIDAY NIGHT MR LOPEZ AGAIN TELLS MR SMITH THAT HIS FAMILY WANTS TO RETURN TO EUROPE BUT ON SATURDAY MORNING HE CALLS MR SMITH AGAIN HE SAYS HIS HEAD IS TELLING HIM TO JUMP TO VW BUT HIS HEART IS TELLING HIM TO STAY WITH GM LATER THAT DAY HE DECIDES TO FOLLOW HIS HEART IN GERMANY MR PIECH ISSUES AN ANGRY STATEMENT TO THE PRESS BLAMING CONTINUING INTERVENTION FROM GENERAL MOTORS AND PROMISING THAT THE FIGHT ISN'T OVER ON SUNDAY GM ISSUES A STATEMENT I CAN CONFIRM THAT MR LOPEZ WILL STAY WITH GENERAL MOTORS SAYS COMPANY SPOKESMAN JAMES W CRELLIN WHO PROMISES MORE DETAILS THE NEXT DAY GM EXECUTIVES SPEAKING ANONYMOUSLY SAY THAT MR LOPEZ WILL GET HIS SECOND PROMOTION IN A MONTH TO EXECUTIVE VICE PRESIDENT AND WILL RUN NORTH AMERICAN OPERATIONS THEY TOUT THE EFFORT TO WIN HIM OVER AS EVIDENCE OF A CULTURAL CHANGE AT THE COMPANY WHERE EXECUTIVES WHO EVEN THOUGHT OF LEAVING WERE ONCE BRANDED AS TRAITORS YESTERDAY BEGAN SMOOTHLY NEWSPAPERS REPORT THAT MR LOPEZ WILL STAY ALL THAT IS EXCEPT FOR AUTOMOTIVE NEWS A WEEKLY TRADE JOURNAL THAT WENT TO PRESS OVER THE WEEKEND ADIOS INAKI READS THE BANNER HEADLINE ON ITS FRONT PAGE AN AUTOMOTIVE NEWS REPORT LAMENTING THE TIMING COMPARES THE HEADLINE TO THE 1948 CLASSIC DEWEY DEFEATS TRUMAN HARRY PEARCE CHATS WITH MR LOPEZ AND MR LOPEZ SEEMS EXCITED ABOUT HIS NEW JOB GM CALLS ITS NEWS CONFERENCE FOR 3 PM WITH MR LOPEZ SLATED TO ATTEND BUT AT 1 PM A FRIEND OF MR LOPEZ'S NO ONE KNOWS JUST WHO WALKS INTO MR SMITH'S OFFICE TO HANDDELIVER A LETTER MR SMITH IS IN LANSING MICH AT A GM FACILITY BUT WHEN HE RETURNS AT 230 JUST A HALF HOUR BEFORE THE NEWS CONFERENCE HE READS IT HE IS STUNNED THE LETTER TELLS MR SMITH THAT MR LOPEZ WILL LEAVE GM AFTER ALL BUT DOESN'T SAY ANYTHING ABOUT HIS PLANS MR SMITH CAN'T LOCATE MR LOPEZ AT 3 PM A GM PUBLICRELATIONS MAN TELLS REPORTERS THAT THE NEWS CONFERENCE WILL BE DELAYED A FEW MINUTES WHY IS HE GOING TO LEAVE AFTER ALL SHOUTS A REPORTER EVERYBODY LAUGHS EXCEPT THE PR MAN A FEW MINUTES LATER MR SMITH WALKS INTO THE ROOM BUT MR LOPEZ ISN'T WITH HIM MR SMITH TAKES THE PODIUM AND ANNOUNCES THE NEWS MR LOPEZ'S LETTER IS QUITE PERSONAL HE SAYS BUT IT DOESN'T SAY JUST WHY HE'S LEAVING OR WHETHER HE IS ACTUALLY GOING TO VW WHAT HAPPENS IF HE CHANGES HIS MIND AGAIN A REPORTER ASKS I THINK THIS IS OVER SAYS MR SMITH 9303160161 930316 SPEAKING OF BUSINESS THE GATT STRUGGLE CONTINUES BY LINDLEY H CLARK JR IN 1824 THOMAS BABINGTON MACAULAY THE BRITISH HISTORIAN DECLARED THAT FREE TRADE IS ONE OF THE GREATEST BLESSINGS THAT A GOVERNMENT CAN CONFER ON A PEOPLE UNFORTUNATELY HE ADDED IT IS IN ALMOST EVERY COUNTRY UNPOPULAR THIS UNPOPULARITY CAN BE FOUND IN THE US TODAY AT LEAST AMONG CERTAIN GROUPS PRESIDENT CLINTON HAS HEDGED HIS COMMITMENT TO THE NORTH AMERICAN FREE TRADE AGREEMENT FOR EXAMPLE BY CALLING FOR FAIR TRADE RULES AND SAFEGUARDS FOR OUR WORKERS ANOTHER TEST OF HIS COMMITMENT TO FREE TRADE WILL BE HIS STANCE TOWARD THE GENERAL AGREEMENT ON TARIFFS AND TRADE FOR SIX LONG YEARS THE 108 NATIONS THAT SIGNED GATT HAVE BEEN STRUGGLING TO MAKE IMPORTANT ADDITIONS TO THE AGREEMENT ADDITIONS THAT MOST MEMBERS THINK WOULD BE TO EVERYONE'S ADVANTAGE OPTIMISTS THINK THE TALKS WHICH BEGAN IN 1986 AT THE PLEASANT RESORT OF PUNTO DEL ESTE URUGUAY ARE STILL ON TRACK PESSIMISTS WORRY ABOUT SEVERAL PROPOSALS THAT ARE MORE THAN SOMEWHAT UNPOPULAR GATT'S CHIEF AIM WHEN IT WAS FOUNDED IN 1947 WAS TO REDUCE TARIFFS AND IN THIS AREA ITS ACHIEVEMENTS HAVE BEEN CONSIDERABLE SO AT PUNTO DEL ESTE THE US DECIDED TO AIM FOR MORE DIFFICULT TARGETS THE TALKS ARE SUPPOSED TO REDUCE NONTARIFF BARRIERS AND STRENGTHEN INTERNATIONAL RULES AFFECTING GENERAL MARKET ACCESS AGRICULTURE SERVICES THE TEXTILES TRADE INTELLECTUAL PROPERTY RIGHTS DISPUTE SETTLEMENT SAFEGUARDS AND ENFORCEMENT MEASURES UNDER GATT A MAJOR OBSTACLE FROM THE START OF THE TALKS HAS BEEN US OPPOSITION TO EUROPEAN COMMUNITY FARM SUBSIDIES AND THE EC'S REFUSAL TO CHANGE THEM FINALLY IN NOVEMBER COMPROMISES WERE REACHED AT LEAST TEMPORARILY HEADING OFF WHAT LOOKED LIKE A TRADE WAR THE US AND OTHER NONEC FARM EXPORTERS WANTED SOMETHING CLOSE TO ELIMINATION OF THE SUBSIDIES AND THEY AREN'T FULLY SATISFIED WITH THE MUCH MORE MODEST CUTS THAT WERE MADE THE FRENCH FARMERS FOR THEIR PART AREN'T HAPPY THAT ANY CUTS WERE MADE FRENCH ELECTIONS ARE COMING UP THIS MONTH AND THE FRENCH GOVERNMENT HAS THREATENED TO VETO THE URUGUAY PACKAGE THE COMPROMISES HOWEVER MADE IT POSSIBLE FOR NEGOTIATIONS TO PROCEED AMONG THE SPECIFIC AIMS ARE REFORM OF QUOTABLIGHTED TRADE IN TEXTILES AND GARMENTS NEW RULES FOR PATENTS AND COPYRIGHTS AND THE FIRST REAL EFFORT TO IMPLEMENT FREE TRADE IN SERVICES ONE OF THE MAJOR CHANGES SOME AMERICANS WOULD LIKE TO SEE IS A NEW ENFORCEMENT MECHANISM GATT'S EXISTING MECHANISM RULED AGAINST THE EC FARM SUBSIDIES MANY MONTHS AGO BUT THE US AND OTHER FARM EXPORTERS THEN COULD ONLY SIT DOWN AND TALK OVER THE SITUATION OR MOVE TOWARD A TRADE WAR THIS WASN'T THE WAY THINGS WERE SUPPOSED TO WORK AT THE TALKS IN GENEVA IN 1946 GATT PLANNERS ENVISIONED SOMETHING CALLED THE INTERNATIONAL TRADE ORGANIZATION THE PLANNERS WERE SMART ENOUGH TO KNOW THAT DISPUTES WOULD ARISE AND THE ITO WAS SUPPOSED TO ADMINISTER ANY TRADE RULES IT SEEMED LIKE A GOOD IDEA BUT THE PROPOSAL WENT TO THE US CONGRESS AND THE LAWMAKERS SHOT IT DOWN THE POSTWORLD WAR II PERIOD WAS AN ERA WHEN INTERNATIONAL ORGANIZATIONS WERE BEING CREATED ALL OVER THE PLACE MANY AMERICANS FELT THERE WERE TOO MANY OF THEM WITH TOO MUCH POWER SO THE ITO NEVER CAME INTO EXISTENCE TRADE DISPUTES OF COURSE DIDN'T DISAPPEAR WHEN TROUBLES SUCH AS THE EC FARM SUBSIDIES AROSE THE VARIOUS PARTIES WERE SUPPOSED TO SIT DOWN AND TALK THINGS OVER THE RINGMASTER FOR ALL THIS TALK WAS SUPPOSED TO BE ARTHUR DUNKEL THE DIRECTOR GENERAL OF GATT MR DUNKEL IS A FRENCH SWISS AND AN ABLE MAN BUT THERE ARE SOME GATTWATCHERS WHO THINK HE COULD HAVE DONE MORE TO KEEP THE NEGOTIATIONS ON TRACK MR DUNKEL CAN CLAIM SOME ACHIEVEMENTS NOTABLY IN PERSUADING THE EC TO AGREE TO THE FARM SUBSIDY COMPROMISE BUT SOME OF MR DUNKEL'S CRITICS IN THE US AND ELSEWHERE THINK HE'S NOT TOUGH ENOUGH IN MIDDECEMBER FOR INSTANCE HE REOPENED NEGOTIATIONS ON SEVERAL MATTERS ON WHICH EVERYONE HAD IMPLICITLY AGREED THERE'S NO INDICATION WHY HE DID THIS ESPECIALLY SINCE HE HAD JUST BEEN URGING EVERYONE TO KEEP AMENDMENTS TO A MINIMUM THE AMERICANS HAVE BEEN MAKING TROUBLE TOO PROPOSALS HAVE BEEN MADE TO CREATE SOMETHING LIKE THE ITO AMERICAN ENVIRONMENTALISTS ARE AFRAID SOME SUCH FULLY FLEDGED ORGANIZATION WOULD USE ITS POWERS TO DISCOURAGE LAWS DESIGNED TO PROTECT THE ENVIRONMENT US INDUSTRIAL GROUPS WANT STRONGER POWERS TO SLAP ANTIDUMPING DUTIES ON FOREIGN EXPORTERS AND SOMEWHAT TO THE SURPRISE OF FOREIGN NEGOTIATORS THE AMERICANS WANT STRONGER PROTECTION FOR INTELLECTUAL PROPERTY MANY FOREIGN NEGOTIATORS FEEL THAT MAJOR GAINS ALREADY HAVE BEEN MADE IN THIS AREA THERE'S NO WAY TO TELL WHAT WILL HAPPEN NOW THAT THE TRADE TALKS ARE IN THE CLINTON ADMINISTRATION'S HANDS SIR LEON BRITTAN THE EC COMMISSIONER FOR EXTERNAL ECONOMIC AFFAIRS SO FAR SEES NO CHANGE IN THE NEW ADMINISTRATION'S APPROACH TO THE TALKS MICKEY KANTOR MR CLINTON'S TRADE REPRESENTATIVE SPEAKS MODESTLY OF HIS LACK OF EXPERIENCE IN TRADE MATTERS BUT HE MADE HIS PROFESSIONAL REPUTATION AS A TOUGH NEGOTIATOR AND THE TALKS NEED SOME TOUGHNESS IF THEY ARE EVER TO SUCCEED 9303160160 930316 WHO'S NEWS THOR INDUSTRIES THOR INDUSTRIES INC JACKSON CENTER OHIO CLARE G WENTWORTH 53 YEARS OLD FORMERLY VICE PRESIDENT OF PURCHASING WAS PROMOTED TO SENIOR VICE PRESIDENT OF THIS MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES MR WENTWORTH WILL HEAD CORPORATE PURCHASING FUNCTIONS IN ADDITION TO WORKING CLOSELY WITH OTHER TOP OFFICERS ON VARIOUS OPERATIONAL MATTERS THE COMPANY SAID 9303160159 930316 WHO'S NEWS UNITED NATIONAL BANCORP UNITED NATIONAL BANCORP BRANCHBURG NJ THOMAS C GREGOR 47 YEARS OLD WAS NAMED CHAIRMAN OF THIS BANK HOLDING COMPANY HE CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNITED NATIONAL BANK UNIT AS CHAIRMAN HE SUCCEEDS KENNETH W TURNBULL 74 WHO RETIRED 9303160158 930316 LOSS AT INTERNATIONAL TOTALIZATOR ESTIMATED FOR FOURTH QUARTER CARLSBAD CALIF INTERNATIONAL TOTALIZATOR SYSTEMS INC EXPECTS TO POST A FOURTHQUARTER NET LOSS OF ABOUT 504000 OR FIVE CENTS A SHARE SAID WILLIAM HANKEY CHIEF FINANCIAL OFFICER IN THE YEAREARLIER PERIOD NET INCOME WAS 642000 OR SEVEN CENTS A SHARE INTERNATIONAL TOTALIZATOR A PROVIDER OF LOTTERY WAGERING AND TICKETING EQUIPMENT AND SERVICES EXPECTS TO POST A 37 DROP IN REVENUE TO 39 MILLION FROM 62 MILLION MR HANKEY SAID HOWEVER THE COMPANY RECENTLY SIGNED TWO LARGE NEW CONTRACTS INCLUDING ONE TO SUPPLY TICKETING TERMINALS FOR A LOTTERY IN JILIN PROVINCE CHINA THAT WILL DEFINITELY HAVE A VERY POSITIVE IMPACT ON THE BOTTOM LINE SAID JAMES T WALTERS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID THE DEAL IS EXPECTED TO GENERATE 49 MILLION IN REVENUE THIS YEAR THE OTHER NEW CONTRACT AN AGREEMENT TO OPERATE A SPORTS BETTING POOL IN THE DOMINICAN REPUBLIC IS EXPECTED TO HAVE A VALUE OF AT LEAST 4 MILLION THIS YEAR A SPOKESWOMAN SAID FOR THE FULL YEAR MR HANKEY SAID IN AN INTERVIEW THAT INTERNATIONAL TOTALIZATOR EXPECTS TO REPORT A NET LOSS OF ABOUT 638000 OR A LOSS OF ABOUT SIX OR SEVEN CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 17 MILLION OR 18 CENTS A SHARE REVENUE FOR 1992 IT'S ESTIMATED FELL TO 198 MILLION FROM THE PREVIOUS YEAR'S 295 MILLION THE ESTIMATED RESULTS FOR THE YEAR ARE LOWER THAN ANALYSTS' EXPECTATIONS BASICALLY EARLY IN THE FOURTH QUARTER WE TOLD ANALYSTS WE THOUGHT IT WAS GOING TO BE A MARGINAL YEAR RIGHT ON THE CUSP MR HANKEY SAID THE DOWNTURN WAS DUE IN PART TO THE COMPANY'S CHANGE OF FOCUS IN EARLY 1992 WHEN INTERNATIONAL TOTALIZATOR'S MANAGEMENT DECIDED TO PURSUE SERVICE CONTRACTS IN ADDITION TO EQUIPMENT CONTRACTS MR HANKEY SAID PREVIOUSLY EQUIPMENT CONTRACTS WERE THE COMPANY'S MAJOR SOURCE OF REVENUE 9303160157 930316 WHO'S NEWS KENNECOTT CORP KENNECOTT CORP SALT LAKE CITY G FRANK JOKLIK 64 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE MINING CONCERN IS RETIRING EFFECTIVE JUNE 1 HE WILL BE SUCCEEDED BY BOB E COOPER 47 CURRENTLY CHIEF OPERATING OFFICER OF THE UNIT OF LONDONBASED RTZ CORP MR JOKLIK HAD PREVIOUSLY ANNOUNCED HIS INTENTIONS TO RETIRE MR COOPER'S SUCCESSOR AS CHIEF OPERATING OFFICER HASN'T BEEN NAMED 9303160156 930316 WHO'S NEWS DIED ROBERT F GILKESON 75 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PHILADELPHIA ELECTRIC CO SATURDAY IN SUN CITY ARIZ FOLLOWING A STROKE 9303160155 930316 WHO'S NEWS ADESA CORP ADESA CORP INDIANAPOLIS AJ FOYT JR 58 YEARS OLD A FOURTIME INDIANAPOLIS 500 WINNER WAS NAMED TO THE BOARD OF THIS OPERATOR OF AUTO AUCTIONS EXPANDING ITS SIZE TO EIGHT MEMBERS MR FOYT ALSO IS PRESIDENT OF AJ FOYT ENTERPRISES INC A MAKER OF ENGINES AND RACING VEHICLES 9303160154 930316 WHO'S NEWS BALLISTIC RECOVERY SYSTEMS INC BALLISTIC RECOVERY SYSTEMS INC ST PAUL MINN ROBERT L NELSON 49 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF WIPAIRE INC A MAKER OF AIRCRAFT AND PARTS WAS NAMED TO THE BOARD OF THIS ROCKETPOWERED PARACHUTE SYSTEMS CONCERN FILLING A VACANCY 9303160153 930316 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK MICHAEL F BREWER 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT COMMUNICATIONS AND GOVERNMENT AFFAIRS HE SUCCEEDS ROBERT S DIAMOND 54 WHO IS RESIGNING AS SENIOR VICE PRESIDENT CORPORATE COMMUNICATIONS MR BREWER JOINED D&B IN 1987 AS VICE PRESIDENT GOVERNMENT AFFAIRS D&B IS A MARKETER OF BUSINESS INFORMATION 9303160152 930316 LEUCADIA NATIONAL POSTS 33 NET DROP FOR FOURTH QUARTER NEW YORK LEUCADIA NATIONAL CORP AN INSURANCE HOLDING COMPANY SAID FOURTHQUARTER NET INCOME FELL 33 PARTLY BECAUSE OF A BIG DROP IN GAINS FROM THE SALE OF SECURITIES LEUCADIA ALSO SAID IT EXPECTS TO REPORT A GAIN OF 128 MILLION IN THE FIRST QUARTER AS A RESULT OF ADOPTING A NEW ACCOUNTING STANDARD RELATED TO INCOME TAXES THE COMPANY SAID IT ALSO EXPECTS TO RECORD A LIABILITY OF ABOUT 67 MILLION FOR A NEW ACCOUNTING RULE ON POSTRETIREMENT HEALTH BENEFITS AND AN ADDITIONAL LIABILITY STILL UNDETERMINED FOR A ACCOUNTING RULE 112 ALSO RELATED TO POSTEMPLOYMENT BENEFITS IN THE 1992 FIRST QUARTER NET WAS 234 MILLION OR 194 A SHARE LEUCADIA SAID FOURTHQUARTER NET FELL TO 443 MILLION OR 179 A SHARE FROM 661 MILLION OR 272 A SHARE A YEAR EARLIER LATEST RESULTS INCLUDED 26 MILLION FROM THE SALE OF SECURITIES COMPARED WITH 373 MILLION IN THE YEAREARLIER QUARTER FOR THE YEAR LEUCADIA SAID NET ROSE 38 TO 1306 MILLION OR 535 A SHARE FROM 948 MILLION OR 4 A SHARE A YEAR EARLIER THE LATEST YEAR'S FIGURES INCLUDE A GAIN OF 379 MILLION FROM THE SALE OF SECURITIES COMPARED WITH 416 MILLION A YEAR EARLIER WHICH INCLUDED A GAIN OF ABOUT 184 MILLION THE SALE OF THE COMPANY'S INVESTMENT IN MOLINS PLC LEUCADIA SAID THAT COLONIAL PENN GROUP INC WHICH IT ACQUIRED IN AUGUST 1991 CONTRIBUTED 1318 MILLION TO 1992 PRETAX INCOME AND ABOUT 60 MILLION TO 1991 PRETAX INCOME OPERATING RESULTS FOR 1992 ALSO INCLUDE A 121 MILLION PRETAX GAIN ON THE SALE OF SUBSTANTIALLY ALL OF ITS CONSUMER LOAN DEVELOPMENT OFFICES LEUCADIA SAID PROFIT FROM CONTINUING OPERATIONS IN 1991 INCLUDES ABOUT 94 MILLION FROM ADDITIONAL PAYMENTS ON CERTAIN INVESTMENTS FAVORABLE SETTLEMENT OF CERTAIN LITIGATION AND ELIMINATION OF CERTAIN RESERVES THE YEAREARLIER RESULTS ALSO INCLUDE A CHARGE OF 82 MILLION FOR DEVELOPMENT AND SHUTDOWN COSTS FROM THE COMPANY'S UNSUCCESSFUL EFFORTS TO DEVELOP AN ELECTRONIC DATABASE MARKETING PROGRAM 9303160151 930316 DOWN THE UP ESCALATOR WHY SOME WORKERS ARE FALLING BEHIND PRICE OF PROGRESS REENGINEERING' GIVES FIRMS NEW EFFICIENCY WORKERS THE PINK SLIP ONE COMPANY AFTER ANOTHER REDESIGNS TASKS TO CURB ITS NEED FOR EMPLOYMENT BUT LONG VIEW IS REASSURING BY AL EHRBAR STAFF REPORTER OF THE WALL STREET JOURNAL IN PRESIDENT CLINTON'S QUEST TO SPUR JOB CREATION HE FACES AN UNLIKELY OBSTACLE TOO MUCH PRODUCTIVITY GROWTH EVIDENCE IS BUILDING THAT REENGINEERING A NEW WAY OF IMPROVING PRODUCTIVITY COULD USHER IN A PROLONGED ERA OF JOB LOSS COMPANIES LIKE MOTOROLA INC XEROX CORP FORD MOTOR CO AND BANC ONE CORP HAVE ALREADY ACHIEVED STUNNING PRODUCTIVITY GAINS TROUGH REENGINEERING AND THOUSANDS OF OTHERS ARE SCRAMBLING TO COPY THEIR SUCCESSES SO FAR THE POTENTIAL MAGNITUDE OF THE REENGINEERING MOVEMENT AND THE PRODUCTIVITY BOOM IT COULD SPAWN HAVE ESCAPED THE ATTENTION OF WASHINGTON POLICY MAKERS AND EVEN MOST ECONOMISTS WHO SPECIALIZE IN PRODUCTIVITY TRENDS NO ONE HAS A FIX ON THE LIKELY POLITICAL AND SOCIAL RAMIFICATIONS OF REENGINEERING BUT SOME ESTIMATES CALL FOR IT TO WIPE OUT AS MANY AS 25 MILLION JOBS THE PRIVATE SECTOR TODAY ENCOMPASSES ROUGHLY 90 MILLION JOBS THOSE THROWN OUT OF WORK AREN'T LIKELY TO FIND AN ABUNDANCE OF OPPORTUNITY AWAITING THEM WE CAN SEE MANY MANY WAYS THAT JOBS WILL BE DESTROYED BUT WE CAN'T SEE WHERE THEY WILL BE CREATED SAYS JOHN C SKERRITT MANAGING PARTNER IN THE FINANCIAL SERVICES GROUP AT ANDERSEN CONSULTING THIS MAY BE THE BIGGEST SOCIAL ISSUE OF THE NEXT 20 YEARS JOHN SCULLEY CHIEF EXECUTIVE OF APPLE COMPUTER INC HAS SAID THAT THIS REORGANIZATION OF WORK COULD PROVE AS MASSIVE AND WRENCHING AS THE INDUSTRIAL REVOLUTION REENGINEERING IS A PHRASE THAT EMBRACES SUCH TECHNIQUES AS WORK TEAMSTRAINING EMPLOYEES IN MULTIPLE SKILLS SO THAT THEY CAN DO MORE THAN ONE JOB AND EMPOWERMENT WHICH MEANS PUSHING DECISIONMAKING AUTHORITY AS FAR DOWN IN AN ORGANIZATION AS POSSIBLE IT ALSO ENTAILS REORGANIZING ASSEMBLY LINES AND OFFICES TO SIMPLIFY AND SPEED THE FLOW OF WORK IN ONE SENSE IT IS THE APPLICATION OF JUSTINTIME INVENTORY CONTROLS TO ALL PHASES OF A COMPANY'S OPERATIONS IN ANOTHER WAY OF LOOKING AT IT REENGINEERING IS A TECHNIQUE FOR FINALLY GETTING THE ELUSIVE PRODUCTIVITY IMPROVEMENTS THAT COMPANIES HAD HOPED TO REAP FROM THE HUNDREDS OF BILLIONS OF DOLLARS THEY INVESTED IN DATAPROCESSING EQUIPMENT OVER THE PAST COUPLE DECADES REENGINEERING CAN BE GREAT FOR THE PERFORMANCE OF INDIVIDUAL COMPANIES BUT WHAT ABOUT THE ECONOMY AS A WHOLE VIRTUALLY ALL ECONOMISTS AGREE THAT REENGINEERING ULTIMATELY SHOULD BRING ABOUT FASTER ECONOMIC GROWTH GREATER INTERNATIONAL COMPETITIVENESS HIGHER REAL WAGES ON AVERAGE FOR THE WORK FORCE AND IMPROVED LIVING STANDARDS LIKE MINERALS IN THE GROUND PEOPLE ARE A NATURAL RESOURCE IF MILLIONS OF WORKERS CAN BE FREED FROM TASKS LIKE PROCESSING MORTGAGE APPLICATIONS THEY WILL BE AVAILABLE TO PRODUCE OTHER GOODS AND SERVICES THAT DON'T EXIST NOW THAT'S THE GOOD NEWS THE BAD NEWS COMES IN THE DISLOCATION OF ALL THOSE PEOPLE WHOSE CURRENT JOBS WILL DISAPPEAR ABSORBING DISPLACED WORKERS COULD BE A VERY GREAT PROBLEM IN THE SHORT TERM AND A REAL TRAGEDY FOR MANY FAMILIES SAYS WILLIAM BAUMOL A PRINCETON ECONOMIST ONE PLUS IS THAT THE DOWNSIZING SCENARIO COMES AT A TIME WHEN THE US LABOR FORCE WILL BE GROWING MUCH MORE SLOWLY THAN IN RECENT DECADES THAT SHOULD MAKE IT EASIER TO ABSORB DISPLACED WORKERS THAN IN THE 1970S OR 1980S WHEN EACH YEAR BROUGHT A NEW BATCH OF BABY BOOMERS TO THE WORKPLACE NOW IT IS EVEN POSSIBLE THAT TWO MILLION WORKERS COULD BE DISPLACED EACH YEAR WITH ONLY A MODEST INCREASE IN THE UNEMPLOYMENT RATE ABOVE WHERE IT WOULD BE IN THE ABSENCE OF REENGINEERING EVEN SO GENERAL PERCEPTIONS ABOUT THE ECONOMY AND JOB PROSPECTS COULD REMAIN AS DREADFUL AS THEY HAVE BEEN FOR THE PAST COUPLE YEARS WITH MILLIONS BEING LAID OFF NEARLY EVERYONE MAY FEEL THREATENED AND WITH GOOD CAUSE FOR MOST WORKERS JOB SECURITY WILL BE THE MOST TENUOUS SINCE THE DEPRESSION SOUNDING MUCH LIKE PRESIDENT CLINTON SOME ECONOMISTS HAVE LAMENTED THAT THE CURRENT RECOVERY HAS BEEN PRODUCTIVITYLED MEANING THAT RISING PRODUCTIVITY HAS ENABLED CORPORATIONS TO RAISE OUTPUT WITHOUT HIRING MANY NEW WORKERS LAST YEAR'S PRODUCTIVITY GROWTH OF 28 WAS THE GREATEST IN 20 YEARS IN A NORMAL EXPANSION SUCH GROWTH WOULD START TO SLOW NOW BUT THAT MIGHT NOT HAPPEN THIS TIME HOW FAST JOBS DISAPPEAR BECAUSE OF REENGINEERING WILL DEPEND ON THE PACE AT WHICH CORPORATIONS ADOPT THE NEW TECHNIQUES SOME EXPERTS SAY THAT REENGINEERING COULD KNOCK OUT BETWEEN A MILLION AND 2 1/2 MILLION JOBS EACH YEAR FOR THE FORESEEABLE FUTURE TO PUT THE IMPACT IN PERSPECTIVE THE DEFENSE BUILDDOWN THAT HAS CLOBBERED THE ECONOMIES OF SOUTHEASTERN CONNECTICUT AND CALIFORNIA IS ELIMINATING FEWER THAN 500000 JOBS A YEAR THE NEW JOB SHRINKAGE SHOULD NOT BE CONFUSED WITH THE REGIMENTALSIZE REDUCTIONS ANNOUNCED BY THE LIKES OF INTERNATIONAL BUSINESS MACHINES CORP GENERAL MOTORS CORP BOEING CO AND SEARS ROEBUCK & CO THOSE LAYOFFS ALONG WITH THE DEFENSERELATED FIRINGS LARGELY REFLECT SHRUNKEN DEMAND FOR THE COMPANIES' OUTPUT PRODUCTIVITYRELATED JOB LOSSES ARE OF A DISTINCTLY DIFFERENT VARIETY THEY ARE STAFF REDUCTIONS MADE BY HEALTHY COMPANIES THAT HAVE FOUND WAYS TO PRODUCE MORE OUTPUT WITH FAR FEWER WORKERS THE CONSULTANT GENERALLY CREDITED WITH COINING THE TERM REENGINEERING MICHAEL HAMMER OF CAMBRIDGE MASS SAYS MOST COMPANIES HAVE A LOT OF PEOPLE WHOSE FUNCTIONS DON'T ADD ANY VALUE TO THE PRODUCT OR SERVICE THEY ARE THE CORPORATE GLUE THAT HOLDS THE REAL WORK TOGETHER WHEN YOU DESIGN THE REAL WORK BETTER YOU NEED A LOT LESS GLUE A FORMER MASSACHUSETTS INSTITUTE OF TECHNOLOGY COMPUTER SCIENCE PROFESSOR MR HAMMER DEVELOPED HIS REENGINEERING INSIGHTS WHILE ADVISING CLIENTS ON HOW TO USE INFORMATION TECHNOLOGY EFFECTIVELY PRODUCTIVITYRELATED JOB LOSSES ARE EXPECTED TO BE ESPECIALLY HEAVY IN THE SERVICE INDUSTRIES THAT'S TERRIBLE NEWS FOR MILLIONS OF CLERICAL WORKERS SUPERVISORS AND MIDDLE MANAGERS IN SERVICE COMPANIES AND FOR WORKERS WHO PERFORM SUPPORT FUNCTIONS AT MANUFACTURERS CONSIDER CAPITAL HOLDING CORP A FINANCIAL SERVICES COMPANY IN LOUISVILLE KY SIX YEARS AGO ITS COMMONWEALTH GROUP OF LIFE INSURANCE COMPANIES EMPLOYED AN ADMINISTRATIVE STAFF OF 1600 TO DO SUCH CHORES AS PROCESSING APPLICATIONS AND CLAIMS THEN COMMONWEALTH ACQUIRED TWO SMALL LIFE INSURERS DURHAM LIFE AND SOUTH LIFE WHICH HAD COMBINED BACKOFFICE STAFFS OF ABOUT 300 TODAY COMMONWEALTH EMPLOYS FEWER THAN 1100 PEOPLE TO DO THE TASKS THOSE 1900 USED TO DO EVEN THOUGH ITS INSURANCE BUSINESS HAS RISEN 25 AND CAPITAL HOLDING HOPES TO CUT THE NUMBER TO JUST 800 JOB SHRINKAGE IS NOTHING NEW US MANUFACTURERS EMPLOY VIRTUALLY THE SAME NUMBER OF PRODUCTION WORKERS AS THEY DID IN 1946 ABOUT 12 MILLION TO PRODUCE ROUGHLY FIVE TIMES AS MANY GOODS TOTAL EMPLOYMENT BY THE 500 LARGEST INDUSTRIAL COMPANIES IN THE US HAS BEEN DECLINING FOR DECADES BUT REENGINEERING HAS ACCELERATED THIS TREND AND ITS CONTRIBUTION TO JOB SHRINKAGE HAS BARELY BEGUN MANAGEMENT CONSULTANTS AND OTHER EXPERTS IN THE FIELD ESTIMATE THAT NO MORE THAN 15 OF US MANUFACTURERS AND A MUCH SMALLER NUMBER OF SERVICE COMPANIES HAVE ADOPTED REENGINEERING TECHNIQUES IN A MAJOR WAY BUT SUDDENLY THEY SAY COMPANIES EVERYWHERE ARE STUDYING THEM THE NUMBER OF COMPANIES DOING THIS HAS BEEN BUILDING VERY SLOWLY FOR 10 YEARS SAYS MR HAMMER BUT IT IS NOW IN THE EARLY STAGES OF A MAJOR ROLLOUT IT IS BECOMING A MASS PHENOMENON THE CHANGE IS EVIDENT IN THE DEMAND FOR A THREEDAY SEMINAR THAT MR HAMMER GIVES ON HOW TO APPLY REENGINEERING TECHNIQUES WHEN HE FIRST OFFERED IT IN 1991 ABOUT 300 EXECUTIVES ATTENDED LAST YEAR CORPORATIONS PUT 1500 EXECUTIVES THROUGH THE SEMINARS AND THIS YEAR HE EXPECTS 3000 OR MORE AT 2000 EACH MAJOR CONSULTING FIRMS REPORT SIMILAR INCREASES IN DEMAND FOR REENGINEERING ADVICE THERE IS ENORMOUS INTEREST IN THIS SAYS JOHN HAGEL HEAD OF CORE PROCESS REDESIGN AT MCKINSEY & CO THAT IS ESPECIALLY TRUE OF COMPANIES THAT ARE GOING THROUGH STRUCTURAL CHANGE BECAUSE OF COMPETITION OR DEREGULATION SURVEYS BY THE AMERICAN MANAGEMENT ASSOCIATION ALSO INDICATE THAT DOWNSIZING OF WORK FORCES FOR A VARIETY OF REASONS IS SPREADING RAPIDLY OF 836 COMPANIES THAT RESPONDED TO AN AMERICAN MANAGEMENT ASSOCIATION SURVEY LAST YEAR 25 SAID THEY PLANNED TO CUT PAYROLLS IN THE NEXT 12 MONTHS THAT WAS THE HIGHEST PERCENTAGE SINCE THE GROUP BEGAN ITS SURVEY SIX YEARS BEFORE WHAT IS MORE THE NUMBER OF COMPANIES THAT ACTUALLY CUT EMPLOYEES HAS ALWAYS BEEN MORE THAN DOUBLE THE NUMBER THAT SAY THEY WILL IN 1991 22 TOLD THE ASSOCIATION THEY PLANNED CUTS A YEAR LATER 46 SAID THEY HAD REDUCED THEIR WORK FORCES ERIC GREENBERG SURVEY DIRECTOR AT THE MANAGEMENT ASSOCIATION ALSO SAYS THAT ONLY A LITTLE MORE THAN HALF THE COMPANIES SHRINKING EMPLOYMENT THIS YEAR ARE DOING SO BECAUSE OF WEAK DEMAND DOWNSIZING PRECEDED THE RECESSION AND IT WILL CONTINUE AFTER THE RECESSION HE SAYS IN THE COMING YEARS COMPETITION IS EXPECTED TO COMPEL MORE AND MORE CORPORATIONS TO REENGINEER THE PERFORMANCE IMPERATIVE IS BECOMING MUCH STRONGER SAYS MR HAGEL COMPANIES NEED MUCH STRONGER PERFORMANCE JUST FOR SURVIVAL NOT TO MENTION SUCCESS FROM THE STANDPOINT OF JOB CREATION AND JOB DESTRUCTION THE MOST SIGNIFICANT DEVELOPMENT IS THE RECENT SPREAD OF REENGINEERING TO SERVICE INDUSTRIES SERVICE COMPANIES EMPLOY ABOUT 75 OF WORKERS IN THE PRIVATE SECTOR AND ACCOUNTED ON BALANCE FOR ALL THE NEW JOBS IN THE 1980S AND WHILE CONVENTIONAL WISDOM HAS IT THAT VIRTUALLY ALL JOB GROWTH COMES FROM SMALL AND MIDSIZE COMPANIES FORTUNE MAGAZINE'S SERVICE 500 COMPANIES ADDED 12 MILLION WORKERS OR 17 OF THE TOTAL JOB GROWTH IN THE US FROM 1986 THROUGH 1991 NOW HOWEVER IT APPEARS THAT GROWING NUMBERS OF LARGE AND MIDSIZE SERVICE COMPANIES ARE JOINING MANUFACTURERS IN SLASHING PAYROLLS AS THEY REENGINEER THEIR BUSINESSES AND AS THE CAPITAL HOLDING EXAMPLE SUGGESTS REENGINEERING CAN REDUCE HEAD COUNTS BY 30 TO 50 AMONG THE SERVICE INDUSTRIES REENGINEERING APPEARS TO BE PROGRESSING MOST RAPIDLY IN BANKING BANC ONE PNC FINANCIAL CORP FIRST BANK SYSTEM INC NATIONSBANK AND MANY OTHERS ARE SCRAMBLING TO STREAMLINE THEIR BACKOFFICE OPERATIONS WAINO PIHL A PARTNER IN ANDERSEN CONSULTING'S BANKING PRACTICE PREDICTS THAT REENGINEERING WILL REDUCE EMPLOYMENT IN COMMERCIAL BANKS AND THRIFT INSTITUTIONS BY 30 TO 40 OVER THE NEXT SEVEN YEARS THAT WOULD ADD UP TO A LOSS OF 600000 TO 700000 JOBS IN BANKING ALONE MR PIHL EXPECTS TO SEE SIMILAR RATIONALIZATIONS IN INSURANCE AND EVEN AT ELECTRIC UTILITIES REENGINEERING DOESN'T ALWAYS BRING LAYOFFS CAPITAL HOLDING WAS ABLE TO OFFER MOST OF ITS DISPLACED COMMONWEALTH WORKERS JOBS AT OTHER DIVISIONS THAT WERE ADDING EMPLOYEES WITH THOSE TRANSFERS PLUS NORMAL ATTRITION AND RETIREMENTS CAPITAL HOLDING HAD TO DISCHARGE ONLY 100 WORKERS WORKERS AT THE HILLS PET FOODS DIVISION OF COLGATEPALMOLIVE CO HAVE HAD SIMILAR LUCK HILLS FIRST ADOPTED A REENGINEERED PRODUCTION PROCESS IN A NEW PLANT IN RICHMOND IND THAT BECAME FULLY OPERATIONAL LAST YEAR AND IT IS IMPLEMENTING THE SAME SYSTEM AT THREE EXISTING PLANTS EXECUTIVE VICE PRESIDENT WARREN SCHMIDGALL SAYS THE NEW SYSTEM WILL RAISE PRODUCTIVITYMEASURED IN POUNDS OF PET FOOD PRODUCED PER EMPLOYEE BY UP TO 50 IN JUST FOUR YEARS BUT RISING VOLUME ALONG WITH NORMAL ATTRITION SHOULD ENABLE HILLS TO PHASE IN THE CHANGES WITHOUT ANY LAYOFFS IN MOST CASES HOWEVER REENGINEERING BRINGS LARGE LAYOFFS IN THE MANAGEMENT ASSOCIATION SURVEYS THE AVERAGE DOWNSIZING COMPANY CUT ITS WORK FORCE 93 IN JUST ONE YEAR AND MANY REPORTED MORE REDUCTIONS IN SUBSEQUENT YEARS AND EVEN IN CASES LIKE CAPITAL HOLDING AND HILLS PET FOOD REENGINEERING REDUCES THE NUMBER OF NEW JOBS CREATED LAYOFFS MAY HIT HARDEST AT THE LEVEL OF MIDDLE MANAGEMENT MR GREENBERG SAYS MIDDLE MANAGERS MAKE UP ONLY 5 TO 8 OF THE WORKERS AT COMPANIES THAT ARE REDUCING EMPLOYMENT BUT CONSTITUTE 18 TO 22 OF THOSE LET GO BY THAT COUNT MIDDLE MANAGERS ARE THREE TIMES AS LIKELY TO BE PUT OUT OF WORK BY REENGINEERING THAT'S BAD NEWS FOR BABY BOOMERS A BIGGER PROPORTION OF THEM HAVE MANAGEMENT JOBS THAN IN ANY PRIOR GENERATION BUT THE GROUP FACING THE GREATEST HARDSHIP SAYS RICHARD FREEMAN A HARVARD LABOR ECONOMIST IS MIDDLEAGED MEN WITHOUT COLLEGE DEGREES WHO HAD UNION JOBS AND WERE EARNING MORE THAN A COMPETITIVE WAGE HE SAYS THEY WILL FACE THE LONGEST PERIODS OF UNEMPLOYMENT OFTEN MORE THAN SIX MONTHS AND HAVE TO TAKE THE BIGGEST PAY CUTS TO GET NEW JOBS MR HAMMER ADDS THAT AS COMPANIES REENGINEER THE JOBS THAT REMAIN ARE BIGGER ONES THAT REQUIRE A HIGHER CALIBER OF PEOPLE SINCE CORPORATIONS WILL TEND TO KEEP THEIR BETTER WORKERS AND DISCHARGE THE LESS SKILLED OR THOSE WITH POORER WORK HABITS THE PEOPLE MOST LIKELY TO LOSE THEIR JOBS ARE THE ONES WHO WILL HAVE THE HARDEST TIME FINDING REEMPLOYMENT THERE ALSO WILL BE FAR FEWER MINDLESS ENTRYLEVEL JOBS MR HAMMER SAYS THAT'S BAD FOR THE DISPLACED AND IT'S BAD FOR UNSKILLED ENTRANTS TO THE LABOR FORCE MR FREEMAN AGREES THERE WILL BE A FURTHER DIVISION IN SOCIETY BETWEEN THOSE WHO HAVE LONGTERM JOBS AND THOSE WHO LOSE THEIR JOBS HE SAYS WE WILL SEE A FURTHER INCREASE IN THE INCOMEINEQUALITY PROBLEM LABOR ECONOMISTS ARE CONFIDENT THAT THE DISPLACED ULTIMATELY WILL FIND NEW JOBS THEY JUST DON'T KNOW WHERE THE JOBS WILL BE SINCE THEY WILL COME IN INDUSTRIES THAT DON'T EXIST YET OR IN ONES THAT WILL GROW MUCH FASTER THAN ANYONE NOW EXPECTS NO ONE KNOWS WHERE WE GOT ALL THE JOBS WE HAVE NOW NOTES ORLEY ASHENFELTER OF PRINCETON MR ASHENFELTER MAKES THE REASSURING OBSERVATION THAT THE MOST IMPORTANT DETERMINANT OF JOB CREATION APPEARS TO BE THE SIZE OF THE LABOR FORCE IN THE 1970S FOR EXAMPLE THE ECONOMY CREATED AN UNPRECEDENTED NUMBER OF NEW JOBS TO ACCOMMODATE BABY BOOMERS AND HIGHER LABOR PARTICIPATION BY WOMEN JUST LET THE MARKET TAKE CARE OF IT ADVISES MR ASHENFELTER WHO IS CRITICAL OF RECENT HANDWRINGING ABOUT A LACK OF GOOD JOBS I THINK WHAT THAT MEANS HE SAYS IS A JOB THAT PAYS MORE THAN YOU ARE WORTH 9303160150 930316 AMERICAN BRANDS EXPECTS FIRSTHALF NET TO FALL ON CHARGE AND MARKETING COSTS AMELIA ISLAND FLA AMERICAN BRANDS INC SAID ACCOUNTING CHANGES HEAVY MARKETING COSTS FOR CIGARETTES AND OTHER FACTORS WILL RESULT IN LOWER FIRSTHALF EARNINGS ADOPTION OF TWO ACCOUNTING CHANGES FOR RETIREMENT COSTS WILL MEAN A ONETIME CHARGE IN THE CURRENT QUARTER EQUAL TO 99 CENTS A SHARE WHILE RELATED EXPENSE INCREASES WILL REDUCE OPERATING EARNINGS ABOUT SIX CENTS A SHARE FOR THE ENTIRE YEAR THE COMPANY TOLD SECURITIES ANALYSTS HERE LAST YEAR THE DIVERSIFIED TOBACCO AND LIQUOR CONCERN BASED IN OLD GREENWICH CONN EARNED 8838 MILLION OR 429 A SHARE ON REVENUE OF 146 BILLION IN THE YEARAGO FIRST HALF PERSHARE EARNINGS WERE 216 AMERICAN BRANDS IS SPENDING HEAVILY TO DEFEND ITS FULLPRICE CARLTON CIGARETTE BRAND IN PART WITH SIGNIFICANT DISCOUNT COUPONING AND IS PROMOTING ITS RECENTLY LAUNCHED CARLTON SLIMS BRAND WITH 5ACARTON DISCOUNTS EFFORTS ARE UNDER WAY TO SLOW THE EROSION OF ITS MATURE FULLPRICE PALL MALL BRAND AS WELL LAST YEAR'S FIRST QUARTER BENEFITED FROM SPECIAL ITEMS FOR THE COMPANY'S MASTERBRAND HARDWARE AND ACCO OFFICESUPPLY UNITS WHILE ITS FRANKLIN LIFE INSURANCE UNIT REALIZED UNUSUALLY LARGE INVESTMENT GAINS THE COMPANY SAID IT TOLD ANALYSTS THE MEETING WAS CLOSED TO THE PRESS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMERICAN BRANDS SHARES FELL 25 CENTS TO 3350 ACCORDING TO THE TEXTS OF THEIR REMARKS EXECUTIVES DECLINED TO SPECIFY HOW NEW EXCISE TAXES ON TOBACCO BEING DISCUSSED IN WASHINGTON MIGHT AFFECT AMERICAN BRANDS OTHER THAN TO SAY THAT IT WOULD DEPEND ON THE PHASEIN SCHEDULE AS WELL AS THE AMOUNT THOMAS C HAYS PRESIDENT AND CHIEF OPERATING OFFICER DID SAY THAT ANY INCREASE WOULD PROBABLY NEGATIVELY AFFECT FULLPRICE BRANDS AND ACCELERATE THE GROWTH OF THE PRICEVALUE SECTOR EVEN WITHOUT ADDITIONAL TAXES SMOKERS ARE SEEING HIGHER PRICES BEFORE DISCOUNTING MR HAYS NOTED THAT LAST YEAR AMERICAN BRANDS INCREASED PRICES ON FULLPRICE BRANDS 15 AND RAISED ITS BRANDED PRICEVALUE LINE AN AVERAGE 30 SINCE LAST OCTOBER THE PRICE OF ITS PRIVATELABEL CIGARETTES INCREASED 45 9303160149 930316 WHO'S NEWS HARCOURT GENERAL INC HARCOURT GENERAL INC NEWTON MASS THIS PUBLISHING CINEMA AND RETAILING CONCERN NAMED TWO NEW DIRECTORS TO ITS BOARD EXPANDING IT TO 11 MEMBERS NAMED WERE LYNN M MARTIN 53 YEARS OLD NOW A FELLOW AT THE KENNEDY SCHOOL OF GOVERNMENT AT HARVARD UNIVERITY AND PAULA STERN 47 PRESIDENT OF STERN GROUP A WASHINGTON ECONOMIC ANALYSIS AND TRADE FIRM MS MARTIN WAS PREVIOUSLY US SECRETARY OF LABOR ONE OF THE SEATS BEING FILLED WAS LEFT VACANT BY NELSON J DARLING JR 72 WHO DIDN'T SEEK REELECTION TO THE BOARD 9303160148 930316 WHO'S NEWS ADVANCED MICRO DEVICES INC ADVANCED MICRO DEVICES INC SUNNYVALE CALIF SUSUMU ICHIKAWA 56 YEARS OLD WAS NAMED PRESIDENT OF THIS CHIP MAKER'S JAPANESE UNIT MR ICHIKAWA WHO PREVIOUSLY WAS PRESIDENT OF TOKYO ELECTRON DEVICES LTD SUCCEEDS STEPHEN ZELENCIK WHO REMAINS SENIOR VICE PRESIDENT OF ADVANCED MICRO AND CHAIRMAN OF THE JAPANESE UNIT 9303160147 930316 WAKE UP AND CHEW THE COFFEE' JUST DOESN'T SOUND QUITE RIGHT BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MARKET FOR MASTICATORIES WITH MOXIE JUST GOT A US COMPETITOR EVERYBODY RISE CHEW AND SHINE THERE'S A PEPPY BUSINESS HERE FOR HIGHCAFFEINE CHEWING GUMS AND LOZENGES GEARED TO ZING THE DROWSIEST WORKER TAXI DRIVERS STUDENTS AND HUNGOVER REVELERS ALSO SWEAR BY THESE STIMULUS STICKS WHICH HAVE NAMES LIKE BLACK BLACK BLACK SUPER BLACK AND STRONG MAN ALSO BLACK BLACK SYMBOLIZES ENERGY OF COURSE EXPLAINS HIDEO MIYAKOSHI MANAGING DIRECTOR OF MORISHITA JINTAN CO MAKERS OF STRONG MAN THIS CHARGES THE ENERGY THAT'S IN YOU IT MAY ALSO BE STRONG MAN'S MIXTURE OF GARLIC ESSENCE CONCENTRATE OF CHINESE CARROT SPICES AND FOUR TYPES OF SUGAR PLUS CAFFEINE AND VITAMINS LAST WEEK THE JAPANESE ARM OF WARNERLAMBERT CO ZIPPED IN WITH STING THE GUM THAT STINGS DROWSINESS THE GUM IS WHITE WITH VISIBLE CRYSTALS OF CAFFEINE MERELY LOOKING AT THE PACKAGE SILVER BEARING A DRAWING OF A SUNBURST AND THE SLOGAN WAKE UP NOW IS LIKELY TO RAISE THE AVERAGE CHEWER'S HEART RATE BLACK BLACK JAPAN'S FIRST GOGO GUM IS STING'S BIGGEST COMPETITION LOTTE CO SAYS IT SELLS ABOUT NINE BILLION YEN 763 MILLION OF BLACK BLACK A YEAR ALMOST TWICE AS MUCH AS EITHER BLACK OR SUPER BLACK THE GUM HAS SIX MILLIGRAMS OF CAFFEINE PER STICK ABOUT THE SAME AS A SWIG OF STRONG COFFEE IT'S SOUR SAYS GENJIRO TORII A COMMODITIES TRADER IN TOKYO WHENEVER I DRIVE AND I FEEL SLEEPY I USE IT THE EFFECT LASTS FOR ABOUT 10 MINUTES AS LONG AS YOU'VE GOT THAT TASTE IN YOUR MOUTH IT'S THE SAME AS OPENING THE WINDOW OR PUTTING ON THE CAR RADIO EXCEPT THAT WORKS FOR FIVE MINUTES SO DO THE MAKERS OF STING RISK GOING INTO THE RED WITH THEIR PALE CRUNCHY GUM WARNERLAMBERT KK SAYS THAT IN THE FIRST WEEK THEY SHIPPED 10 MORE STING THAN THEY PROJECTED AND IT'S WINNING FANS I WALKED INTO A MEETING A COUPLE HOURS' SLEEP FEELING BAD SAYS SCOTT ELVIS WOLFSON A TRADER WITH A MAJOR US INVESTMENT BANK IN TOKYO I ATE A STICK OF STING AND I COULDN'T SIT DOWN FOR 30 MINUTES ACCORDING TO THE MANUFACTURER STING HAS LESS CAFFEINE THAN BLACK BLACK BUT TASTERS SAY IT'S GOT A NOSEREAMING LEVEL OF MENTHOL AND FOUR KINDS OF SUGAR MR WOLFSON SAYS WHAT MORE DO YOU WANT 9303160146 930316 WHO'S NEWS ADAPTEC INC ADAPTEC INC MILPITAS CALIF THIS MAKER OF COMPUTER STORAGE SOFTWARE AND HARDWARE NAMED PHILLIP E WHITE 50 YEARS OLD TO ITS BOARD THE ELECTION OF MR WHITE WHO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INFORMIX CORP BRINGS THE NUMBER OF ADAPTEC DIRECTORS TO SEVEN 9303160145 930316 BUSINESS BRIEF NIKE STOCK RISES 64 ON HIGHER EARNINGS SHARP RISE IN ORDERS BEAVERTON ORE NIKE INC POSTED SLIGHTLY BETTERTHANEXPECTED THIRDQUARTER EARNINGS AND SHARPLY HIGHER ORDERS HELPING PROPEL THE COMPANY'S SHARES UP 4625 OR 64 TO 76375 FOR THE QUARTER ENDED FEB 28 NIKE REPORTED EARNINGS OF 895 MILLION OR 116 A SHARE UP 7 FROM YEAREARLIER EARNINGS OF 825 MILLION OR 108 A SHARE REVENUE CLIMBED 12 TO 972 MILLION FROM 867 MILLION IN A FURTHER SIGN OF STRENGTH NIKE SAID WORLDWIDE ORDERS FOR ITS ATHLETIC SHOES AND APPAREL FOR DELIVERY FROM MARCH TO JULY ROSE BY 21 TO 165 BILLION NIKE CHAIRMAN PHILIP H KNIGHT IN A PREPARED STATEMENT ATTRIBUTED THE RESULTS TO STRONG DEMAND FOR FOOTWEAR IN THE US WHICH GREW BY 15 OR THE STRONGEST QUARTER IN TWO YEARS WHILE DESCRIBING NIKE'S RESULTS AS SOLID ANALYSTS CAUTIONED THAT ONLY A MONTH AGO THE COMPANY LOWERED EXPECTATIONS FOR THE QUARTER SAYING ANALYSTS' ESTIMATES OF 120 TO 130 IN PERSHARE EARNINGS WERE TOO HIGH THAT ANNOUNCEMENT ON FEB 16 CAUSED NIKE'S SHARES TO FALL MORE THAN 9 IN A SINGLE DAY'S TRADING THIS IS A GOOD SOLID QUARTER BUT IT APPEARED TO BE AN EVEN BETTER QUARTER BECAUSE OF LAST MONTH'S CUT IN EXPECTATIONS SAID GARY JACOBSON AN ANALYST AT KIDDER PEABODY & CO THE STRONG GROWTH IN ORDERS ALSO GIVES PEOPLE A SENSE OF STABILITY SAID ALICE RUTH AN ANALYST AT MONTGOMERY SECURITIES BUT MS RUTH NOTED THAT NIKE HAS EXPANDED ITS FUTURES ORDERING PROGRAM TO INCLUDE MORE EUROPEANS MEANING YOU HAVE TO DILUTE THOSE FUTURES NUMBERS BY AS MUCH AS ONEHALF IN ORDER TO TAKE INTO ACCOUNT REDUCTIONS IN FILL OR SPOT ORDERS A SPOKESMAN FOR NIKE DEFENDED ITS DECISION TO CAUTION ANALYSTS LAST MONTH ABOUT ITS RESULTS SAYING THE COMPANY INDEED DID FALL BELOW CONSENSUS ESTIMATES AT THAT TIME FOR THE NINE MONTHS NIKE REPORTED EARNINGS OF 2881 MILLION OR 374 A SHARE COMPARED WITH 2585 MILLION OR 338 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 295 BILLION FROM 256 BILLION 9303160144 930316 TECHNOLOGY & SCIENCE JAPAN SEEKS TO END NUMERICAL GOALS FOR CHIP MARKET BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE OFFICIALS BRACING FOR AN ANNOUNCEMENT IN THE COMING WEEK THAT THEY'VE FAILED TO MEET US EXPECTATIONS FOR OPENING JAPAN'S SEMICONDUCTOR MARKET SAID THEY WANT TO DROP THE USE OF NUMERICAL GOALS FOR FOREIGN FIRMS' SHARE OF THE MARKET THEIR COMMENTS COME AS US AND JAPANESE REPRESENTATIVES PREPARE TO REVIEW NEXT WEEK A TWOYEAROLD BILATERAL PACT AIMED AT INCREASING FOREIGN SHARE OF THE JAPANESE CHIP MARKET THE INTERPRETATION OF THAT AGREEMENT HAS LONG BEEN IN DISPUTE THE US CLAIMS THAT JAPAN AGREED TO BOOST THE MARKET SHARE OF FOREIGN FIRMS 20 BY THE END OF 1992 HOWEVER JAPAN ARGUES THAT THE 20 FIGURE REPRESENTS ONLY THE EXPECTATIONS OF US INDUSTRY WHICH SELLS MOST OF THE FOREIGN CHIPS BOUGHT IN JAPAN FINAL MARKET SHARE FIGURES FOR 1992 ARE SCHEDULED TO BE RELEASED BY JAPAN AND THE US BY EARLY NEXT WEEK THEY ARE EXPECTED TO SHOW THAT FOREIGN FIRMS FELL WELL SHORT OF A 20 MARKET SHARE AT THE END OF THE THIRD QUARTER OF 1992 FOREIGN FIRMS CONTROLLED 159 OF THE MARKET OFFICIALS AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY NOW SAY THAT THEY'RE TIRED OF QUIBBLING OVER SUCH FIGURES AND THAT THEY DON'T INTEND TO ALLOW THE US TO ESTABLISH A NEW MARKET SHARE GOAL IN UPCOMING SEMICONDUCTOR TALKS WHICH WILL BEGIN IN HAWAII NEXT TUESDAY BECAUSE THERE WAS A CONTROVERSY OVER THE OLD 20 FIGURE WHICH WAS TAKEN AS SOME FORM OF COMMITMENT WE HAVE NO INTENTION OF REFERRING TO ANY NEW NUMBERS IN REVIEWING THE SEMICONDUCTOR AGREEMENT KOJI MATSUI DEPUTY DIRECTOR OF MITI'S INDUSTRIAL ELECTRONICS DIVISION SAID AT A NEWS CONFERENCE MITI OFFICIALS ALSO FOUND THEMSELVES ON THE DEFENSIVE WHEN THEY ATTEMPTED TO EXPLAIN RECENT STORIES IN THE JAPANESE PRESS THAT CLAIMED MITI WOULD ACCUSE US FIRMS OF CANCELING NEARLY 10 BILLION YEN ABOUT 85 MILLION OF ORDERS FROM JAPANESE CUSTOMERS MR MATSUI SAID THE FIGURE WHICH CAME FROM A AN INDUSTRYGROUP SURVEY REFERRED TO AN ESTIMATE OF POTENTIAL DAMAGE SUFFERED BY JAPANESE FIRMS THAT COULDN'T GET ALL THE MEMORY AND MICROPROCESSOR CHIPS THEY WANTED BECAUSE OF A WORLDWIDE SHORTAGE RATHER THAN ACTUAL CANCELLATIONS BY US COMPANIES YESTERDAY'S REMARKS WERE THE FIRST PUBLIC COMMENTS BY JAPANESE TRADE OFFICIALS ABOUT THE COMING CHIP TALKS THE OFFICIALS ARE WATCHING TO SEE HOW THE CLINTON ADMINISTRATION HANDLES THE SEMICONDUCTOR ISSUE AS AN EARLY CLUE TO ITS STILL UNDEFINED TRADE POLICIES NEVERTHELESS JAPAN HAS A LONG HISTORY OF TALKING TOUGH BEFORE NEGOTIATIONS AND THEN GIVING IN WHICH IS ONE REASON US INDUSTRY OFFICIALS SAY THEY AREN'T ABOUT TO EASE UP WE FIRMLY BELIEVE THE ONLY REASON THIS AGREEMENT WORKED WAS BECAUSE THERE WAS A NUMERICAL GOAL THERE SAID ROGER MATHUS EXECUTIVE DIRECTOR OF THE US SEMICONDUCTOR INDUSTRY ASSOCIATION IN TOKYO I'M GETTING THE FEELING THEY FINALLY REALIZE THIS GOAL ISN'T GOING TO GO AWAY FURTHERMORE US GOVERNMENT OFFICIALS HAVE RECENTLY TAKEN A HARD LINE WITH TOKYO ON THE SEMICONDUCTOR AGREEMENT US TRADE REPRESENTATIVE MICKEY KANTOR SAID LAST WEEK THAT IF FOREIGN FIRMS FALL SHORT OF A 20 MARKET SHARE HE WOULD VIEW IT AS A COMMITMENT NOT KEPT BY THE JAPANESE HE NOTED THAT HE PREFERS TO THINK OF A 20 GOAL AS A FLOOR RATHER THAN A CEILING FOR US MARKET SHARE SEPARATELY IN WASHINGTON THE COMMERCE DEPARTMENT IS EXPECTED TODAY TO ISSUE A FINAL RULING ON THE SIZE OF ANTIDUMPING TARIFFS TO BE IMPOSED ON SOUTH KOREANMADE COMPUTER MEMORY CHIPS LAST YEAR THE DEPARTMENT ISSUED A PRELIMINARY RULING LEVYING TARIFFS OF AS HIGH AS 874 ON SEMICONDUCTORS IMPORTED FROM SOUTH KOREA THE PRODUCTS INVOLVED ARE DYNAMIC RANDOM ACCESS MEMORY COMPUTER CHIPS WHICH ARE USED IN MAKING PERSONAL COMPUTERS THE PRELIMINARY DECISION SENT THE PRICES OF COMPUTER CHIPS SKYROCKETING ESSENTIALLY KNOCKING SOUTH KOREAN COMPUTER CHIPS OUT OF THE US MARKET AND PROMPTING INTENSE EFFORTS BY THE SOUTH KOREAN GOVERNMENT TO REMOVE THE TARIFFS MICRON TECHNOLOGY INC BOISE IDAHO FILED THE ORIGINAL COMPLAINT CHARGING SOUTH KOREAN MAKERS WITH UNFAIRLY PRICING COMPUTER MEMORY CHIPS IN THE US ONCE THE COMMERCE DEPARTMENT ISSUES A DECISION THE US INTERNATIONAL TRADE COMMISSION HAS UNTIL APRIL 29 TO RULE WHETHER THE US INDUSTRY WAS INJURED BY THE SOUTH KOREAN IMPORTS A FINDING OF INJURY WOULD ESSENTIALLY MAKE THE TARIFFS FINAL THE COMMISSION IS A QUASIJUDICIAL US BODY THAT RULES ON DUMPING CASES 9303160143 930316 FINANCING BUSINESS INTERPOOL INC INTERPOOL INC PRINCETON NJ A CARGO EQUIPMENT LESSOR SAID IT PLANS AN INITIAL PUBLIC OFFERING OF FOUR MILLION SHARES AT 1150 TO 1350 A SHARE THE COMPANY IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID IT INTENDS TO USE PROCEEDS TO REPAY ABOUT 16 MILLION OF SHORTTERM BANK DEBT 153 MILLION OF SHORTTERM BORROWINGS AND A 3 MILLION PROMISSORY NOTE ANY REMAINING PROCEEDS WILL BE USED FOR GENERAL PURPOSES INCLUDING BUYING EQUIPMENT AN OFFICIAL SAID INTERPOOL LEASES CARGO CONTAINERS AND CONTAINER CHASSIS TO THE SHIPPING INDUSTRY INTERPOOL SAID THAT AFTER THE OFFERING IT WILL HAVE ABOUT 161 MILLION SHARES OUTSTANDING THE LEAD UNDERWRITER IS FURMAN SELZ INC 9303160142 930316 S&P RAISES ITS RATING ON 270 MILLION DEBT OF CUMMINS ENGINE NEW YORK STANDARD & POOR'S CORP RAISED ITS RATINGS ON ABOUT 270 MILLION OF LONGTERM DEBT ISSUED BY CUMMINS ENGINE CO CITING IMPROVED BUSINESS PROSPECTS AND A STRENGTHENED FINANCIAL PROFILE CUMMINS RETURNED TO PROFITABILITY IN 1992 EARNING 671 MILLION BEFORE ACCOUNTING CHANGES AFTER AN EXTENDED PERIOD OF HEAVY LOSSES S&P SAID IT EXPECTS FURTHER EARNINGS IMPROVEMENT AS THE COLUMBUS IND MAKER OF DIESEL ENGINES BENEFITS FROM STRENGTHENED DEMAND IMPROVED OPERATING EFFICIENCIES AND THE FIRST FULL YEAR OF SALES UNDER AN AGREEMENT TO SUPPLY FORD MOTOR CO WITH MIDRANGE TRUCK ENGINES RECENT MOVES TO DIVERSIFY THE CUSTOMER BASE INCLUDING AGREEMENTS TO SUPPLY SEVERAL ORIGINAL EQUIPMENT TRUCK MAKERS AND A JOINTVENTURE LINK WITH KOMATSU LTD WILL MITIGATE EARNINGS AND CASH FLOW VOLATILITY THE RATINGS CONCERN SAID NONETHELESS S&P NOTED CUMMINS'S PROFIT AND CASH FLOW POTENTIAL WILL BE LIMITED BY INTENSE COMPETITIVE PRESSURES SUBSTANTIAL RESEARCH AND DEVELOPMENT EXPENSES AND HEAVY CAPITAL INVESTMENTS GIVEN ITS RELATIVELY HIGH BUSINESS RISK PROFILE CUMMINS'S BALANCE SHEET IS SATISFACTORILY LEVERAGED AT AN ADJUSTED MID40 LEVEL THE RATINGS CONCERN SAID THE UPGRADE INCLUDES CUMMINS'S SENIOR DEBT RAISED TO DOUBLEBPLUS FROM DOUBLEB AND ITS SUBORDINATED DEBT AND PREFERRED STOCK RAISED TO DOUBLEBMINUS FROM SINGLEBPLUS THE RATINGS OUTLOOK FOR CUMMINS IS POSITIVE S&P SAID ADDING THAT UPSIDE RATINGS POTENTIAL EXISTS IF CUMMINS CAN CONTINUE TO INCREASE MARKET SHARE WHILE FURTHER DELEVERAGING ITS CAPITAL STRUCTURE 9303160141 930316 INTERNATIONAL RAMOS CALLS FOR INQUIRY INTO MISSING JOURNALISTS MANILA PHILIPPINES KYODO PHILIPPINE PRESIDENT FIDEL RAMOS ORDERED AN INVESTIGATION INTO THE DISAPPEARANCE OF 10 JOURNALISTS ACCREDITED TO COVER HIS STATE VISIT LAST WEEK TO JAPAN BUT WHO FAILED TO RETURN TO MANILA THE JOURNALISTS ARE BELIEVED TO HAVE GONE INTO HIDING WITH THE INTENTION OF FINDING JOBS IN JAPAN MR RAMOS ASKED THE OFFICE OF THE PRESS SECRETARY AND THE DEPARTMENTS OF FOREIGN AFFAIRS AND JUSTICE TO INVESTIGATE THE MATTER AND COORDINATE WITH THE JOURNALISTS' MEDIA EMPLOYERS PRESS SECRETARY RODOLFO REYES SAID THAT ALTHOUGH THE JOURNALISTS HOLD VISAS VALID FOR 90 DAYS THE GOVERNMENT WILL ASK FOR THEIR IMMEDIATE DEPORTATION IF OFFICIALS CAN ESTABLISH THAT THEY ARE NOT ACCREDITED WITH THEIR SUPPOSED NEWS ORGANIZATIONS OR IF THEY ARE NOT REAL JOURNALISTS OTHER FILIPINO REPORTERS WHO COVERED THE STATE VISIT SAID SEVEN OF THE MISSING JOURNALISTS DIDN'T EVEN BOTHER TO GET THEIR ACCREDITATION PASSES WHILE THREE OF THEM COVERED MR RAMOS'S FIRST DAY IN JAPAN BUT DISAPPEARED ON THE SECOND DAY 9303160140 930316 INTERNATIONAL CANADIAN DEFENSE MINISTER EMERGES AS LEADER IN RACE TO SUCCEED MULRONEY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN DEFENSE MINISTER KIM CAMPBELL AN IRREVERENT 46YEAROLD LAWYER HAS TAKEN A COMMANDING LEAD IN THE CONTEST TO SUCCEED BRIAN MULRONEY AS LEADER OF THE PROGRESSIVE CONSERVATIVE PARTY AND PRIME MINISTER OF CANADA IF SHE IS NAMED TO THE POST SHE WOULD BE CANADA'S FIRST WOMAN PRIME MINISTER THREE POTENTIAL RIVALS HAVE DROPPED OUT OF THE CONTEST IN THE PAST TWO DAYS ACKNOWLEDGING MS CAMPBELL'S STRENGTH AN UNPRECEDENTED CONSENSUS HAS DEVELOPED IN FAVOR OF MS CAMPBELL SAID COMMUNICATIONS MINISTER PERRIN BEATTY WHO PULLED OUT OF THE RACE YESTERDAY MS CAMPBELL'S STRONG SHOWING AMONG CONSERVATIVES AND CANADIANS GENERALLY GIVES THE CONSERVATIVE PARTY NEW HOPE OF RETAINING POWER UNDER MR MULRONEY THE CONSERVATIVES HAD BEEN ALMOST WRITTEN OFF AS CONTENDERS IN THE NEXT ELECTION WHICH MUST BE HELD BEFORE NOVEMBER MS CAMPBELL TOLD REPORTERS YESTERDAY THAT SHE WAS QUITE OVERWHELMED BY HER SUPPORT IT SUGGESTS A REMARKABLE DEGREE OF COMING TOGETHER IN THE PARTY WHICH IS REASSURING FOR CONSERVATIVES AND DISQUIETING FOR EVERYBODY ELSE SHE SAID CONSERVATIVE SUPPORTERS SAID A CAMPBELLLED GOVERNMENT WOULD CONTINUE THE KEY POLICIES OF THE MULRONEY ADMINISTRATION INCLUDING SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT GROUPING THE US CANADA AND MEXICO THE OPPOSITION LIBERAL PARTY LED BY JEAN CHRETIEN IS DEMANDING CHANGES IN THE TRADE ACCORD INCLUDING NEW CODES TO DEAL WITH TRADEDISTORTING PRACTICES SUCH AS SUBSIDIES AND DUMPING MR MULRONEY PRIME MINISTER SINCE SEPTEMBER 1984 SAID LAST MONTH THAT HE WOULD RESIGN AS SOON AS HIS PARTY PICKED A SUCCESSOR IN THE PARLIAMENTARY SYSTEM A NEW PRIME MINISTER CAN TAKE OFFICE WITHOUT AN ELECTION IF HE OR SHE HAS SUFFICIENT SUPPORT IN PARLIAMENT TO GOVERN POLITICAL ANALYSTS SAID MS CAMPBELL'S STRONG CONSERVATIVE BACKING ASSURES HER OF VICTORY AT THE PARTY'S LEADERSHIP CONVENTION JUNE 9 TO 13 SOME ANALYSTS PREDICTED THE CONVENTION WILL BE HER CORONATION MR BEATTY THE COMMUNICATIONS MINISTER HAD BEEN CONSIDERED A STRONG POTENTIAL CONTENDER FOR THE LEADERSHIP BUT HE TOLD REPORTERS YESTERDAY THAT HE DIDN'T HAVE A REALISTIC CHANCE OF WINNING IN VIEW OF THE GROUNDSWELL FOR MS CAMPBELL OTHERS WHO ANNOUNCED THEY WOULDN'T BE CANDIDATES INCLUDED EXTERNAL AFFAIRS MINISTER BARBARA MCDOUGALL TRADE MINISTER MICHAEL WILSON AND EMPLOYMENT MINISTER BERNARD VALCOURT MS CAMPBELL WHO IS IN THE PROCESS OF A SECOND DIVORCE HAS HAD A METEORIC RISE WITHIN THE CONSERVATIVE PARTY SHE WAS APPOINTED JUSTICE MINISTER IN 1990 AND INTRODUCED IMPORTANT LEGISLATION DEALING WITH YOUNG OFFENDERS GUN CONTROL ABORTION AND EXTRADITION SHE REWROTE THE RAPE SHIELD LAW LIMITING THE USE OF A PLAINTIFF'S SEXUAL HISTORY IN RAPE TRIALS MR MULRONEY NAMED HER DEFENSE MINISTER IN JANUARY SINCE THEN SHE HAS VIGOROUSLY DEFENDED AN UNPOPULAR GOVERNMENT DECISION TO ORDER 50 HELICOPTERS VALUED AT 44 BILLION CANADIAN DOLLARS US353 BILLION FOR ANTISUBMARINE PATROLS AND SEARCH AND RESCUE MISSIONS MS CAMPBELL WHO REPRESENTS A CONSTITUENCY IN VANCOUVER BRITISH COLUMBIA APPEARS TO THRIVE ON CONTROVERSY DON'T MESS WITH ME I'VE GOT TANKS SHE SAID JOKINGLY TO REPORTERS AFTER HER APPOINTMENT AS DEFENSE MINISTER SHE GAINED NATIONAL ATTENTION LAST YEAR AFTER NEWSPAPERS PUBLISHED A PHOTOGRAPH OF HER HOLDING HER JUDICIAL ROBES ON A HANGER WHILE OFFERING A SUGGESTIVE GLIMPSE OF BARE SHOULDER SOME TABLOIDS CALLED HER CANADA'S MADONNA SHE LAUGHED OFF THE PUBLICITY CALLING IT A HOOT MS CAMPBELL WHO SPEAKS FRENCH AND RUSSIAN GOT AN EARLY BOOST FOR HER LEADERSHIP BID FROM QUEBEC COLLEAGUES WHO SAID THEY RESPECTED HER GRASP OF THE FRENCHSPEAKING PROVINCE'S CONCERNS SHE HAS BEEN A STRONG SUPPORTER OF MR MULRONEY AND HER COLLEAGUES SAY A GOOD TEAM PLAYER BUT FOR CANADIANS SHE REPRESENTS A NEW POLITICAL FACE SAID LORNE BOZINOFF VICE PRESIDENT OF GALLUP CANADA BY PICKING HER THE CONSERVATIVES CAN DUMP A LOT OF BAGGAGE HE SAID MS CAMPBELL HASN'T FORMALLY DECLARED HER LEADERSHIP CANDIDACY SHE TOLD REPORTERS SHE WANTED TO HOLD OFF ANY ANNOUNCEMENT UNTIL NEXT WEEK WHEN SHE WILL BE IN HER HOME CITY OF VANCOUVER 9303160139 930316 US RAWSTEEL OUTPUT ROSE 21 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS INCREASED 21 LAST WEEK TO 1809000 TONS FROM 1772000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 14 FROM THE 1784000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 823 OF ITS CAPABILITY LAST WEEK COMPARED WITH 806 THE PREVIOUS WEEK AND 811 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9303160138 930316 INTERNATIONAL ELEVENTH ACCIDENT AT HOECHST KILLS ONE SAFETY CONTROLS URGED FRANKFURT AN EXPLOSION YESTERDAY AT HOECHST AG EUROPE'S LARGEST CHEMICAL COMPANY KILLED ONE EMPLOYEE AND SEVERELY INJURED ANOTHER THE ACCIDENT WHICH ALSO RELEASED A TON OF METHANOL INTO THE ATMOSPHERE WAS THE 11TH ACCIDENT AT THE COMPANY IN THREE WEEKS AND THE FIRST TO TAKE A HUMAN LIFE IT INTENSIFIED A POLITICAL AND ENVIRONMENTAL BATTLE OVER THE CHEMICAL INDUSTRY'S RESPONSIBILITIES TO ITS WORKERS AND THE PUBLIC THE GERMAN GOVERNMENT CALLED FOR MORE INTENSIVE CONTROLS OF PLANT SAFETY IN THE CHEMICAL INDUSTRY FEDERAL ENVIRONMENT MINISTER KLAUS TOEPFER EVEN RECOMMENDED HAVING OUTSIDERS POLICE COMPANIES' ENVIRONMENTAL AND SAFETY PROGRAMS THE MOST ENVIRONMENTALLY DAMAGING ACCIDENT AT HOECHST OCCURRED FEB 22 WHEN 10 TONS OF CHEMICALS INCLUDING CARCINOGENIC ELEMENTS ESCAPED FROM A FACILITY ENVELOPING A FRANKFURT SUBURB SINCE THEN EVERY FEW DAYS HAVE BEEN MARKED BY A NEW REPORT OF A MINOR SPILL OR MECHANICAL FAILURE AT VARIOUS HOECHST PLANTS THE CHEMICAL WORKERS UNION IG CHEMIE WHICH TRADITIONALLY MAINTAINS AN EXTREMELY COOPERATIVE RELATIONSHIP WITH THE INDUSTRY REFRAINED FROM DENUNCIATIONS YESTERDAY A UNION OFFICIAL SAID HOWEVER THAT THE GROUP IS PREPARING A STATEMENT THAT WILL URGE COMPANIES IN THE INTEREST OF SAFETY TO STOP SHEDDING PERSONNEL INDUSTRY ANALYSTS SAID THE SOLUTION SEEMS TO BE FOR COMPANIES TO INVEST MORE HEAVILY IN FULL AUTOMATION OF THEIR FACILITIES TO REMOVE THE POSSIBILITY OF ACCIDENTS THROUGH HUMAN ERROR 9303160137 930316 ECONOMY THREE ECONOMISTS FORECAST GAINS UNDER CLINTON PLAN BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A TRIO OF UNIVERSITY OF MICHIGAN ECONOMISTS WHO TEND A WELLREGARDED COMPUTER MODEL OF THE ECONOMY PREDICT A STRENGTHENING ECONOMY AND A SHRINKING FEDERAL DEFICIT IF PRESIDENT CLINTON STICKS TO HIS FISCAL PROPOSALS THE THREE NOW SEE THE ECONOMY GROWING ABOUT 32 THIS CALENDAR YEAR BEFORE SLOWING TO ABOUT 23 GROWTH NEXT YEAR THE ECONOMY GREW ABOUT 21 IN 1992 DESCRIBING THE RECENT DECLINE IN THE UNEMPLOYMENT RATE AS MEAGER THE ECONOMISTS SAID THAT ECONOMIC STIMULUS IN 1993 CONTINUES TO BE A PRIORITY THEY ADDED PRESIDENT CLINTON WAS RIGHT TO FRONTLOAD HIS VERY SERIOUS MULTIYEAR DEFICITREDUCTION PACKAGE WITH A MODERATE DOSE OF FISCAL STIMULUS SOME OTHER ECONOMISTS HAVE SAID THAT THE STIMULUS ISN'T NEEDED THE MICHIGAN FORECASTERS ARE MARKEDLY MORE OPTIMISTIC ABOUT THE IMPACT OF MR CLINTON'S DEFICITREDUCTION PLAN THAN THE WHITE HOUSE IS IF THE PLAN IS ENACTED AND IF THE FEDERAL RESERVE MAINTAINS LOW INTEREST RATES THE ECONOMISTS EXPECT THE FEDERAL DEFICIT TO DECLINE TO 275 BILLION IN THE CURRENT FISCAL YEAR AND 204 BILLION IN FISCAL 1994 WHICH BEGINS OCT 1 1993 LAST FISCAL YEAR'S DEFICIT WAS 290 BILLION IN FISCAL 1995 THE THREE PREDICT THE DEFICIT COULD FALL BELOW 175 BILLION MORE THAN 50 BILLION BELOW WHERE IT WOULD BE WITHOUT THE CHANGES MR CLINTON PROPOSES WHITE HOUSE ECONOMISTS FORECAST A 225 BILLION DEFICIT FOR THAT YEAR THE MICHIGAN FORECAST FOR THIS CALENDAR YEAR IS IN LINE WITH THOSE MADE BY OTHER ECONOMISTS BUT NEXT YEAR'S IS A BIT GLOOMIER A RECENT SURVEY BY THE PHILADELPHIA FEDERAL RESERVE BANK FOUND THAT THE MEDIAN FORECAST IS FOR 31 ECONOMIC GROWTH BOTH THIS YEAR AND NEXT AND THE LATEST SURVEY MADE BY THE BLUE CHIP ECONOMIC INDICATORS A NEWSLETTER HAS THE ECONOMY GROWING 32 THIS YEAR AND 31 NEXT YEAR THE MICHIGAN ECONOMISTS SAUL HYMAN JOAN CRARY AND JANET WOLFE EXPECT THE UNEMPLOYMENT RATE NOW AT 7 TO DECLINE GRADUALLY TO 66 BY YEAR END BUT THEY WARN THAT IT WILL THEN STALL NEVERTHELESS THEY ARE LESS OPTIMISTIC ABOUT THE PROSPECTS FOR REDUCED INFLATION THAN SOME OTHERS THEY SEE CONSUMER PRICES RISING 37 THIS YEAR AND 42 NEXT CONSUMER PRICES ROSE ONLY 3 LAST YEAR 9303160136 930316 TEXACO INC TO CALL DEBENTURES WHITE PLAINS NY TEXACO INC SAID IT WILL CALL 71 MILLION OF ITS 5 3/4 DEBENTURES DUE JULY 15 1997 THE NOTES WILL BE REDEEMED APRIL 15 AT 100 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE REDEMPTION DATE 9303160135 930316 MARKETING & MEDIA NEW YORK POST NEAR PENNING AN ENCORE OF ITS DEATH SCENE OLD TABLOID FILES FOR PROTECTION UNDER BANKRUPTCY COURT STAFF THWARTS PUBLICATION BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK POST HAS RETURNED TO THE BRINK OF EXTINCTION THE AILING TABLOID FILED FOR BANKRUPTCY PROTECTION YESTERDAY ON THE SAME DAY IT FAILED TO PUBLISH ANY EDITIONS ITS NEW OWNER FIRED THEN REHIRED STAFFERS AND A WOULDBE RESCUER CONTINUED HIS FIGHT TO STEP IN ANGRY STAFFERS THWARTED THE PUBLICATION OF THE 192YEAROLD TABLOID PAPER ON MONDAY AFTER LEARNING THE NEW COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD PLANNED IMMEDIATE FIRINGS OF MORE THAN 200 EMPLOYEES THAT MARKED ONE OF THE FEW TIMES IN ITS HISTORY THAT THE POST FAILED TO PUBLISH THE POST PLANS TO PUBLISH TODAY AND IF IT DOES POST INSIDERS SAID IT WOULD CARRY STORIES ATTACKING MR HIRSCHFELD EARLIER YESTERDAY MANY NEWSPAPER GUILD UNION MEMBERS WERE NOTIFIED THEY WERE BEING FIRED BUT BY LATE AFTERNOON POST INSIDERS SAID MOST OF THOSE FIRINGS WERE RESCINDED IT WAS UNCLEAR WHETHER THAT INCLUDED SEVERAL TOP MANAGERS NEITHER MR HIRSCHFELD NOR THE MANAGERS COULD BE REACHED FOR COMMENT IN US BANKRUPTCY COURT MEANWHILE STEVEN HOFFENBERG UNTIL LAST WEEK A BIDDER FOR THE POST AND POST CREDITORS WERE PETITIONING TO OVERTURN THE PLANNED SALE TO MR HIRSCHFELD MR HIRSCHFELD'S OWN COMMITMENT CAME INTO QUESTION YESTERDAY AS WIRE SERVICES QUOTED THE REAL ESTATE DEVELOPER AS SAYING HE WAS MORE INTERESTED IN BUYING THE POST'S BUILDING RATHER THAN THE NEWSPAPER ITSELF HE ALSO WAS QUOTED AS SAYING HE MIGHT STEP ASIDE IF GOV MARIO CUOMO CAME FORWARD WITH A NEW GROUP OF INVESTORS YESTERDAY THE POST FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN FEDERAL COURT IN NEW YORK AT THE DIRECTION OF MR HIRSCHFELD WITH THE APPROVAL OF CURRENT OWNER PETER KALIKOW POST SOURCES SAID THE FILING WAS AIMED AT INSULATING THE PAPER FROM CLAIMS BY MR HOFFENBERG WHO MAY TRY TO COLLECT ON 6 MILLION HE ALREADY HAD INVESTED IN THE NEWSPAPER MR HOFFENBERG CHAIRMAN OF TOWERS FINANCIAL CORP HAD ORIGINALLY WON THE RIGHT TO BUY THE PAPER BUT COULDN'T CLOSE THE DEAL BECAUSE OF CONTINUING TROUBLE WITH THE SECURITIES AND EXCHANGE COMMISSION 9303160134 930316 BUSINESS BRIEF BT FINANCIAL CORP FIRM AGREES TO ACQUISITION OF FIRSTSOUTH OF PITTSBURGH BT FINANCIAL CORP SEEKING TO ENTER THE PITTSBURGH MARKET SAID IT AGREED TO ACQUIRE FIRSTSOUTH BANCORP IN A STOCK AND CASH TRANSACTION WITH AN INDICATED VALUE OF 16 MILLION UNDER THE AGREEMENT SHAREHOLDERS OF CLOSELY HELD FIRSTSOUTH WHICH IS BASED IN PITTSBURGH WILL RECEIVE 066 SHARE OF JOHNSTOWN PABASED BT FINANCIAL AND 1350 IN CASH THE TRANSACTION WAS ANNOUNCED YESTERDAY AFTER THE CLOSE OF TRADING IN OVERTHECOUNTER TRADING BT FINANCIAL COMMON STOCK WAS QUOTED AT 2850 UP 50 CENTS BT FINANCIAL WHICH HAS 907 MILLION IN ASSETS SAID THAT AFTER THE ACQUISITION IT WILL HAVE 11 BILLION IN ASSETS 9303160133 930316 OTC FOCUS BUCKING THE ELEMENTS NASDAQ STOCKS RISE IN SLOWEST TRADING IN FOUR MONTHS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS MOVED HIGHER BUT FIRE AND ICE FORCED MANY PLAYERS OUT OF THE MARKET A SMOKY FIRE THAT SHUT THE TRADING OPERATIONS OF ONE MAJOR INVESTMENT HOUSE COMBINED WITH THE AFTERMATH OF A BLIZZARD THAT BATTERED THE EAST COAST OVER THE WEEKEND LEFT ACTIVITY AT ITS LOWEST LEVEL SINCE NOV 16 WHILE TRADERS AT GOLDMAN SACHS & CO WERE FORCED OUT OF THEIR NEW YORK OFFICES BY SMOKE SHORTLY AFTER MIDDAY OTHER MARKET PLAYERS FROM MAINE TO GEORGIA DIDN'T MAKE IT TO WORK AT ALL BECAUSE OF STORMRELATED TROUBLES INCLUDING POWER OUTAGES AND SLIPPERY ROADS ADVANCING ISSUES OUTPACED DECLINERS 1419 TO 1145 NASDAQ NATIONAL MARKET VOLUME TOTALED JUST 156779800 SHARES DOWN FROM 195016000 ON FRIDAY DESPITE THE REDUCED TRADING VOLUME THE NASDAQ COMPOSITE INDEX JUMPED 243 OR 035 TO 69521 COMPLETING A RECOVERY IN PRICES THAT BEGAN FRIDAY AFTERNOON ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SAID INVESTORS WERE ENCOURAGED BY FRIDAY'S BOUNCE AND WERE BUYERS YESTERDAY WE STILL HAVE POSITIVE MOMENTUM HE SAID MONEY STILL WANTS TO GET IN SMALLER CAPITALIZATION STOCKS A SPOKESMAN FOR GOLDMAN SACHS SAID TRADERS ARE EXPECTED TO OPERATE NORMALLY THIS MORNING HE SAID THEY CONTINUED TO WORK YESTERDAY AT ANOTHER SITE IN THE FIRM'S OFFICE BUILDING IN LOWER MANHATTAN MR GOLDMAN OF AG EDWARDS SAID THE ABSENCE OF GOLDMAN SACHS MIGHT HAVE TRIMMED NASDAQ VOLUME BY 5 TO 8 TRADERS SAID THERE WAS LITTLE NEWS TO AFFECT PRICES I JUST THINK A LOT OF PEOPLE ARE SITTING ON THEIR HANDS WAITING FOR SOME SIGN TO BUY OR SELL SAID ROBERT O'TOOLE SR HEAD OF NASDAQ INSTITUTIONAL SALES TRADING AT LEHMAN BROTHERS HEDI REYNOLDS MANAGER OF NASDAQ TRADING AT MORGAN KEEGAN & CO SAID SOME INVESTORS MAY BE DELAYING COMMITMENTS AHEAD OF TOMORROW'S SCHEDULED LABOR DEPARTMENT RELEASE OF CONSUMER PRICES DATA CONCERN ABOUT A WORSETHANEXPECTED READING ON INFLATION AT THE WHOLESALE LEVEL HELPED TRIGGER THE MARKET'S SELLOFF EARLY FRIDAY BUT TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY SAID HE WAS ENCOURAGED BY THE STRENGTH IN NASDAQ STOCKS DESPITE LOWER BOND PRICES AG EDWARDS' MR GOLDMAN PREDICTED CONTINUED STRENGTH IN OVERTHECOUNTER STOCKS WE ARE IN A BULL MARKET HE SAID FRAME TECHNOLOGY PLUNGED 4 3/8 TO 7 7/8 THE SAN JOSE CALIF SOFTWARE DEVELOPER SAID IT EXPECTS TO POST A FIRSTQUARTER LOSS ANALYSTS SURVEYED BY ZACKS INVESTMENT RESEARCH HAD EXPECTED THE COMPANY TO REPORT A PROFIT CLOSE TO THE SEVEN CENTS A SHARE IT POSTED A YEAR EARLIER MTC ELECTRONIC JUMPED 3 5/8 TO 14 1/2 AFTER THE CANADIAN IMPORTEXPORT COMPANY SAID IT RECEIVED APPROVALS FOR A JOINT VENTURE TO OPERATE CELLULAR TELEPHONE SYSTEMS IN THE CHINESE PROVINCE OF HUBEI SPECULATION OVER WHETHER THE COMPANY CAN SUCCESSFULLY LAUNCH A CELLULAR SERVICE HAS WHIPPED ITS STOCK FROM A LOW OF FIVE LAST FALL TO NEARLY 30 IN NOVEMBER AND THEN BACK BELOW SEVEN LATE LAST MONTH AMGEN ADDED 7/8 TO 36 1/2 OPPENHEIMER & CO ANALYST JEFFREY CASDIN UPGRADED HIS RATING ON THE STOCK TO ANALYST BUY FROM MARKET PERFORMER MR CASDIN BELIEVES SALES OF AMGEN'S NEUPOGEN DRUG COULD PICK UP IN THE COMING QUARTER A DISAPPOINTING SALES READING LAST MONTH SENT THE THOUSAND OAKS CALIF FIRM'S STOCK TUMBLING NEUPOGEN IS USED TO PREVENT INFECTIONS IN CANCER PATIENTS RECEIVING CHEMOTHERAPY CHIRON ROSE 3 7/8 TO 55 3/8 A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL WILL REVIEW THE EMERYVILLE CALIF COMPANY'S BETASERON DRUG FOR THE TREATMENT OF MULTIPLE SCLEROSIS ON FRIDAY TAKECARE GAINED 3 3/4 TO 34 1/2 THE CONCORD CALIF HEALTH MAINTENANCE ORGANIZATION AGREED TO BUY COMPRECARE A COLORADOBASED HMO COMPANY CAPE COD BANK & TRUST DROPPED 4 1/2 TO 21 1/2 AFTER THE MASSACHUSETTS BANKING COMPANY ENTERED INTO A CEASEANDDESIST ORDER WITH THE FEDERAL DEPOSIT INSURANCE CORP CAPE COD BANK WILL BE REQUIRED TO AMEND CERTAIN OF ITS PRACTICES CAERE LOST 3 1/2 TO 14 5/8 ALEX BROWN & SONS ANALYST W CHRISTOPHER MORTENSON TRIMMED HIS 1993 EARNINGS ESTIMATE ON THE LOS GATOS CALIF COMPANY BY FOUR CENTS TO 80 CENTS A SHARE CRAY COMPUTER FELL 1 1/8 TO 3 1/4 THE COLORADO SPRINGS COLO COMPANY'S DIFFICULTIES IN DEVELOPING ITS ADVANCED CRAY3 SUPERCOMPUTER WERE HIGHLIGHTED IN AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL 9303160132 930316 YOUR MONEY MATTERS AFTER MEGAMERGER MEGAHAPPINESS OR MEGAHEADACHES BY MICHAEL SICONOLFI AND EARL C GOTTSCHALK JR STAFF REPORTERS OF THE WALL STREET JOURNAL NOW THAT THE BIGGEST MERGER EVER IN THE BROKERAGE BUSINESS HAS BEEN ANNOUNCED INVESTORS WANT TO KNOW WHAT DOES IT MEAN FOR ME FOR THE NEARLY FOUR MILLION CUSTOMERS OF SMITH BARNEY SHEARSON INC CREATED BY COMBINING SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS INC'S BROKERAGE BUSINESS THERE WILL BE SOME OBVIOUS BENEFITS ONCE THE MERGER IS COMPLETED IN EARLY JULY CHIEF AMONG THEM ACCESS TO THE OTHER FIRM'S RESEARCH MUTUAL FUNDS AND NEW STOCK AND BOND ISSUES SMITH BARNEY CUSTOMERS ARE LIKELY TO SEE THE BIGGER CHANGE BECAUSE SHEARSON'S TECHNOLOGY IS FAR MORE ADVANCED AND ITS SERVICES FAR MORE EXTENSIVE BUT THERE ARE ALSO DISRUPTIONS AHEAD FOR CUSTOMERS OF THE COMBINED FIRMS IF HISTORY IS ANY GUIDE SOME SMITH BARNEY SHEARSON BROKERS ARE LIKELY TO LEAVE THE NEW FIRM OTHERS MAY FRET MORE ABOUT THEIR FUTURE JOBS THAN YOUR FUTURE INCOME AND PEOPLE FAMILIAR WITH THE FIRM SAY THAT AS MANY AS 20 BRANCHES OF THE NEW FIRM OUT OF ITS 495 ARE LIKELY TO BE SHUT THAT COULD CAUSE CONFUSION FIRST YOU'LL GET A LETTER OF ASSURANCE SAYING THAT YOUR LIFE IS IMPROVED AND HOW LUCKY YOU ARE SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO PICKS MONEY MANAGERS FOR WEALTHY INDIVIDUALS THEN IF YOU DO BUSINESS IN WHAT IS DEEMED A MARGINAL OFFICE BY A MARGINAL BROKER YOU'LL GET A LETTER SAYING HOW LUCKY YOU ARE TO GET A NEW BROKER AND A NEW OFFICE THE EXPERIENCE OF CUSTOMERS IN THE NEWLY HATCHED SMITH BARNEY SHEARSON REFLECTS THE POTENTIAL PITFALLS AND PLUSES OF MEGAMERGERS IN THE SECURITIES BUSINESS THIS IS IMPORTANT BECAUSE WALL STREET EXECUTIVES EXPECT ADDITIONAL CONSOLIDATION OF BIG BROKERAGE FIRMS IN THE NEXT FEW YEARS THE MOST IMMEDIATE ADVICE FOR INVESTORS IN BROKERAGE MERGERS SPECIALISTS SAY IS NOT TO MAKE ANY SUDDEN MOVES IN THE MIDDLE OF THE PROCESS WITH A CHANGE OF THIS MAGNITUDE LOTS OF PAPERWORK CAN GO AWRY SAYS KENNETH S JANKE SR PRESIDENT OF THE NATIONAL ASSOCIATION OF INVESTORS CORP A ROYAL OAK MICH ORGANIZATION OF CLUBS FOR INDIVIDUAL INVESTORS SO LET THE DUST SETTLE FOR A FEW MONTHS AND MAKE SURE YOUR NEW BROKERAGE ACCOUNT IS EXACTLY THE SAME IF FEES GO UP AND SERVICES GO DOWN YOU CAN ALWAYS SHOP AROUND FOR A NEW BROKERAGE FIRM THEN HE SAYS EXECUTIVES OF THE NEWLY CREATED FIRM SAY THEY ARE TAKING PAINS TO MAKE SURE BOTH SMITH BARNEY AND SHEARSON CUSTOMERS BENEFIT THEY POINT TO A TWOYEAR SERVICE ARRANGEMENT UNDER WHICH CUSTOMERS OF SMITH BARNEY SHEARSON WILL HAVE ACCESS TO RESEARCH AND NEW STOCK AND BOND ISSUES PROVIDED BY LEHMAN BROTHERS INC SHEARSON'S INVESTMENTBANKING AND TRADING DIVISION THAT WASN'T INCLUDED IN THE SALE THIS IS PARTICULARLY IMPORTANT BECAUSE LEHMAN IS RANKED NO 3 AMONG WALL STREET STOCK AND BOND UNDERWRITERS BY SECURITIES DATA CO AND NO 1 IN A WIDELY WATCHED RESEARCH POLL BY INSTITUTIONAL INVESTOR MAGAZINE WE WANT TO MAKE SURE CUSTOMERS FROM BOTH SIDES SEE ONLY AN UPTICK SAYS FRANK ZARB WHO WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SMITH BARNEY SHEARSON MR STOLPER PREDICTS MORE DISRUPTIONS FOR SHEARSON CUSTOMERS THAN FOR THOSE OF SMITH BARNEY PRIMERICA CORP'S SMITH BARNEY UNIT IS ALREADY CREATED IN THE IMAGE THAT PRIMERICA CHAIRMAN SANFORD WEILL WANTS MR STOLPER SAYS HE ADDS THAT GIVEN MR WEILL'S HISTORY OF ACQUISITION AND INTEGRATION AND THE FACT THAT HE PATCHED TOGETHER SHEARSON IN PIECES THIS MERGER SHOULD BE BETTER HANDLED THAN MOST STILL THERE COULD BE CONFUSION WHAT HAPPENS IF A LEHMAN ANALYST RATES INTERNATIONAL BUSINESS MACHINES CORP A BUY AND A SMITH BARNEY ANALYST RATES THE STOCK A SELL SMITH BARNEY SHEARSON'S MR ZARB SAYS BROKERS WILL HELP CLIENTS SORT THROUGH SUCH A PREDICAMENT THE CLIENT IS GOING TO GET A GOOD CLEAR ANALYSIS OF THE SITUATION AND WON'T BE LEFT ALONE TO DRIFT AND MAKE HIS OWN DECISION HE SAYS INVESTORS IN MUTUAL FUNDS MANAGED BY SHEARSON AND SMITH BARNEY ALSO MAY FACE A QUANDARY THAT'S BECAUSE THERE ARE SEVERAL SIMILAR FUNDS MANAGED BY BOTH FIRMS THAT ARE LIKELY TO BE MERGED ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER WE'LL KEEP THE GOOD THINGS THEY DO AND THEY'LL KEEP THE GOOD THINGS WE DO SAYS JOSEPH PLUMERI WHO WILL BE SMITH BARNEY SHEARSON'S PRESIDENT SOME BROKERS IN THE NEW FIRM SAY THEY'RE HAPPY WITH THE MOVE TERESA CONTARDO A SMITH BARNEY BROKER IN BOSTON SAYS SHE LIKES HAVING ENHANCED CAPABILITY THAT ACCESS TO SHEARSON'S SYSTEMS PROVIDE THAT WILL HELP ME PROVIDE SERVICE MY PEOPLE NEED BUT SOME SMITH BARNEY BROKERS ARE UNHAPPY THAT THEY'LL BE PART OF A BROKERAGE COLOSSUS AND SOME SHEARSON BROKERS ARE FEARFUL THAT THEY WILL BE DISMISSED OR NOT FIT IN WITH THE COSTCONSCIOUS CULTURE OF THE NEW FIRM FOR HIS PART MR PLUMERI SAYS WORRIES ABOUT MASS DISMISSALS ARE UNWARRANTED IN A CONFERENCE CALL TO SHEARSON BROKERS FRIDAY HE SAID YOU DON'T LET YOUR ASSETS GO WHAT DO YOU DO IF YOUR BROKER DOES LEAVE DON'T AUTOMATICALLY PICK UP YOUR ACCOUNT WITH WHOMEVER IT'S ASSIGNED TO SAYS JONATHAN POND A WATERTOWN MASS CPA AND AUTHOR OF SEVERAL BOOKS ON PERSONAL FINANCE JUST BECAUSE YOUR BROKER HAS LEFT IT DOESN'T MEAN THAT THE NEW FIRM WILL ASSIGN SOMEONE WHO IS COMPATIBLE WITH YOU MR POND SAYS MORE LIKELY THEY WILL BE ASSIGNED AT RANDOM MEANWHILE WATCH YOUR NEW ACCOUNT STATEMENT CAREFULLY TO SEE THAT ALL SECURITIES HAVE BEEN TRANSFERRED SAYS MARY CALHOUN A WATERTOWN MASS CONSULTANT IN SECURITIES ARBITRATION INVESTORS SHOULD CHECK LINEFORLINE TO SEE THAT EVERY SECURITY AND EVERY PENNY GETS TRANSFERRED INTO THE NEW ACCOUNT SHE SAYS ONE COMPUTER GLITCH CAN CAUSE ERRORS THAT REVERBERATE ACROSS MANY INVESTORS' STATEMENTS 9303160131 930316 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MARCH 1629 THIS SHOW OF 65 PAINTINGS BY THE FRENCH IMPRESSIONIST ALFRED SISLEY COORGANIZED BY THE WALTERS THE ROYAL ACADEMY OF THE ARTS LONDON AND THE MUSEE D'ORSAY PARIS MAKES ITS ONLY AMERICAN STOP HIGHLIGHTS INCLUDE L'AQUEDUC A PORT MARLY 1874 WHICH WAS EXHIBITED AT THE FIRST IMPRESSIONIST EXHIBITION AND L'EGLISE DE MORET 1893 ONE IN A SERIES OF PAINTINGS OF THE CHURCH OF MORET COMPLETED DURING THE SAME PERIOD MONET WORKED ON HIS FAMOUS ROUEN CATHEDRAL SERIES A SURVEY OF THE 300YEAR HISTORY OF PORTRAIT MINIATURES 120 TINY MOSTLY OVAL PORTRAITS OF LOVED ONES OR THE FAMOUS MADE DURING THE 16TH THROUGH 19TH CENTURIES TO ADORN LOCKETS BRACELETS JEWELED BOXES AND OTHER DECORATIVE OBJECTS THE SHOW DRAWN ENTIRELY FROM THE MUSEUM'S OWN COLLECTION INCLUDES A LARGE 9 1/4INCHBY7INCH SQUARE MINIATURE SIR ANTHONY MILDMAY CIRCA 1596 BY THE FIRST GREAT MINIATURIST NICHOLAS HILLIARD ACTIVE AT THE COURT OF ELIZABETH I A DELICATELY PAINTED IVORY A WOMAN PUTTING FLOWERS IN HER HAIR C 1730 BY THE ITALIAN ARTIST ROSALBA GIOVANNA CARRIERA NEOCLASSICAL PORTRAITS BY GERMAN BIEDERMEIER ARTISTS AND FRAME WITH NINE MINIATURE A SET OF PORTRAITS TWO NO LARGER THAN A THUMBNAIL OF THE ROYAL FAMILY BY THE RUSSIAN FIRM OF CARL FABERGE CLEVELAND MUSEUM OF ART 11150 EAST BOULEVARD AT UNIVERSITY CIRCLE MARCH 23OCT 17 216 4217340 SEVENTYFOUR CARVED STONE SCULPTURES OF DEITIES CELESTIAL BEINGS DEVOTEES AND PROTECTIVE GUARDIANS DATING FROM AD 700 TO AD 1200 A PERIOD IN INDIAN ART WHEN HINDUISM AND TEMPLE ART FLOURISHED ASIA SOCIETY 725 PARK AVE AT 70TH STREET MARCH 31AUG 15 RICHARD STRAUSS'S ARIADNE AUF NAXOS AN ODDLY WONDERFUL PIECE INTERWEAVING THE SAD STORY OF THE ABANDONED ARIADNE WITH THE ANTICS OF A TROOP OF COMEDIANS RETURNS TO THE MET IN A NEW PRODUCTION BY ELIJAH MOSHINSKY WITH DESIGNS BY MICHAEL YEARGAN JESSYE NORMAN IS THE DIVA A ROLE REQUIRING LITTLE ACTING WHO PLAYS ARIADNE DEBORAH VOIGT SINGS THE ROLE ON APRIL 8 RUTH ANN SWENSON IS ZERBINETTA FOR THE FIRST THREE PERFORMANCES SHE IS THEN REPLACED BY TRACY DAHL ION MARIN CONDUCTS DAVID BAMBERGER'S UPDATED VERSION OF MOZART'S COSI FAN TUTTE IS SET IN 1990S NAPLES FLA INSTEAD OF 1790S NAPLES ITALY AMONG THE SINGERS ARE DAVID SHAPERO AS DON ALFONSO WHO STARTS ALL THE TROUBLE BY BETTING HIS TWO YOUNG FRIENDS GUGLIELMO ROBERT ORTH AND FERRANDO DON BERNARDINI THAT THEIR FIANCEES WHO WEAR BATHING SUITS HERE WILL BE UNFAITHFUL GIVEN THE CHANCE ELIZABETH HOLLEQUE WHO RECENTLY DEBUTED AT COVENT GARDEN AS TOSCA OPPOSITE LUCIANO PAVAROTTI AND AT THE MET IS GUGLIELMO'S FIANCEE FIORDILIGI AND HILLARY NICHOLSON IS FERRANDO'S SWEETY DORABELLA ERIE MILLS SINGS THE ROLE OF THE CONSPIRING MAID DESPINA STATE THEATRE 1519 EUCLID AVE MARCH 26 27 AND 28 IN OHIO 216 2416000 ELSEWHERE 18007666048 THE TROUPE PERFORMS AT NEW YORK STATE THEATER FOR THE FIRST TIME WITH A PROGRAM INCLUDING A PAIR OF WORKS NEW TO THE COMPANY MICHAEL SMUIN'S A SONG FOR DEAD WARRIORS A NARRATIVE BALLET WITH A NATIVE AMERICAN THEME AND ALVIN AILEY'S THE RIVER WITH MUSIC BY DUKE ELLINGTON AMONG THE REVIVALS IS FREDERIC FRANKLIN'S CREOLE GISELLE SET IN LOUISIANA BAYOU COUNTRY DURING THE 19TH CENTURY LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS THROUGH MARCH 28 212 8705570 9303160130 930316 BORIS YELTSIN'S WINNING ODDS BY ADRIAN KARATNYCKY SUBJECTED TO BITTER DENUNCIATIONS AND FORMALLY STRIPPED OF MUCH OF HIS POWER BY RUSSIA'S PARLIAMENT BORIS YELTSIN IS FAR FROM DEFEATED PUBLIC OPINION POLLS CONTINUE TO SHOW THAT DESPITE DECLINING SUPPORT HE REMAINS RUSSIA'S MOST POPULAR POLITICAL FIGURE AS HE PRESSES FORWARD WITH AN APRIL REFERENDUM THAT WOULD DETERMINE WHETHER RUSSIA WILL BECOME A PRESIDENTIAL OR A PARLIAMENTARY REPUBLIC MR YELTSIN CAN COUNT ON THE SUPPORT OF A VIBRANT CIVIL SOCIETY THAT HAS EMERGED SINCE THE COLLAPSE OF SOVIET TOTALITARIANISM THIS CIVIL SOCIETY INCLUDES RUSSIA'S GROWING NUMBER OF ENTREPRENEURS WHO NOW OWN SMALL BUSINESSES AND SHOPS IT ALSO INCLUDES RUSSIA'S EMERGING FREE TRADE UNIONS INCLUDING THE INDEPENDENT MINERS UNION MR YELTSIN IS LIKEWISE SUPPORTED BY MOST OF RUSSIA'S LARGECIRCULATION NEWSPAPERS INCLUDING ARGUMENTY I FAKTY IZVESTIA AND KOMSOMOLSKAYA PRAVDA AS SIGNIFICANT HE HOLDS THE REINS OF RUSSIAN RADIO AND TELEVISION INCLUDING THE POWERFUL OSTANKINO TELEVISION NETWORK WHICH HE HAS PUT UNDER THE DIRECTION OF HIS TRUSTED AIDE MIKHAIL POLTORANIN AND LEADERS OF THE DEMOCRATIC RUSSIA MOVEMENT THE MEDIA ARE LIKELY TO BE CENTRAL TO MR YELTSIN'S EFFORT TO SECURE A BIG TURNOUT IN THE REFERENDUM MR YELTSIN ALSO BENEFITS FROM THE BALANCE OF FORCES INSIDE RUSSIA'S MILITARY WHILE HARDLINERS IN THE MILITARY CERTAINLY OPPOSE HIM HE ENJOYS THE SUPPORT OF SIGNIFICANT SEGMENTS OF THE YOUNGER OFFICER CORPS AND A DIVIDED MILITARY WILL BE RELUCTANT TO TAKE SIDES IN THE POLITICAL FRAY MINDFUL OF THE AUGUST 1991 COUP DEBACLE THIS MEANS THAT IN THE WEEKS BEFORE THE REFERENDUM THE STATUS QUO IS LIKELY TO PREVAIL WITH THE MILITARY REFUSING TO ENFORCE ANY CHANGES IN THE GOVERNMENT NOR HAS MR YELTSIN EXHAUSTED ALL HIS LEGAL OPTIONS THE RUSSIAN PRESIDENT AND HIS GOVERNMENT WILL LIKELY ARGUE THAT THE FORTHCOMING RUSSIAN REFERENDUM IS LEGALLY BINDING BECAUSE IN VOTING TO BEGIN THE REFERENDUM PROCESS IN DECEMBER PARLIAMENT CEDED THE RIGHT TO DETERMINE THE SHAPE OF RUSSIA'S CONSTITUTION TO THE PEOPLE AS ANATOLY SLIVA DEPUTY CHIEF OF THE RUSSIAN PRESIDENT'S LEGAL DEPARTMENT SAID EARLIER THIS MONTH UNTIL THE REFERENDUM IS HELD AND ITS RESULTS ARE ANNOUNCED THE PEOPLE HAVE BECOME THE ONLY SUBJECT OF LAW EMPOWERED TO RESOLVE PROBLEMS OF THE NEW CONSTITUTION IN SUM THE CONGRESS OF PEOPLE'S DEPUTIES IS NOT EMPOWERED TO ADOPT A RESOLUTION CANCELING THE REFERENDUM DESPITE THE LEGAL AND POLITICAL ASSETS IN MR YELTSIN'S HANDS IT WOULD BE WRONG TO UNDERESTIMATE THE FEROCITY OF THE REVANCHIST OPPOSITION TO HIM IRONICALLY MUCH OF IT IS ROOTED IN REFORMS LAUNCHED UNDER MIKHAIL GORBACHEV AND HIS PRIME MINISTER VALENTIN PAVLOV THESE CHANGES PERMITTED THE LEASING ON EXCEEDINGLY FAVORABLE TERMS OF THE MOST PROFITABLE SEGMENTS OF ENTERPRISES TO PRIVATELY HELD COMPANIES CONTROLLED BY DIRECTORS FROM THE OLD NOMENKLATURA TODAY SUCH LEASES REPRESENT ABOUT 15 OF RUSSIAN INDUSTRY THUS THE RED DIRECTORS ENRICHED AT THE PUBLIC'S EXPENSE ARE NOW A POWERFUL INTEREST GROUP OPPOSED TO ANY PRIVATIZATION PLAN THAT WOULD UNDO THIS SWEETHEART ARRANGEMENT THIS IS PRECISELY WHAT MR YELTSIN'S PRIVATIZATION PLAN WOULD DO BY TAKING HOLD OF A MAJORITY STAKE IN PRIVATIZED ENTERPRISES FOR A THREEYEAR PERIOD THE RUSSIAN GOVERNMENT WOULD BREAK THE STRANGLEHOLD OF THE DIRECTORS WHO ARE NOW VIRTUALLY FEUDAL OVERLORDS OF THE FACTORIES THEY ARE SUPPOSED TO MANAGE ON THE STATE'S BEHALF AS THE G7 COUNTRIES MEET TO DISCUSS AN AID PACKAGE FOR RUSSIA THE WEST SHOULD BE MINDFUL THAT IT WILL TAKE MONTHS BEFORE AID COMES THROUGH THE PIPELINE WITH ONLY A NEGLIGIBLE EFFECT ON THE RUSSIAN ECONOMY IN THE SHORTTERM WHAT IS NEEDED NOW ARE CLEARCUT POLITICAL AND DIPLOMATIC STEPS TO STRENGTHEN MR YELTSIN THIS MEANS DELIBERATELY FAVORING MR YELTSIN IN HIS BATTLE WITH PARLIAMENT AND DENYING THE LEGISLATURE ANY SORT OF CREDIBILITY IN THE WEEKS LEADING UP TO THE APRIL 25 REFERENDUM IT MEANS ENLISTING THE SUPPORT OF OUR ALLIES IN ISOLATING RUSSIA'S ERRATIC PARLIAMENTARY SPEAKER RUSLAN KHASBULATOV WHO IN RECENT MONTHS HAS BEEN WINED AND DINED BY MANY WORLD LEADERS YET WHILE THE ODDS FAVOR MR YELTSIN HIS VICTORY IS FAR FROM ASSURED AND THE LONGTERM SUCCESS OF RUSSIAN DEMOCRACY IS IN QUESTION RUSSIA IS BESET BY DEEP ETHNIC DIVISIONS BY SEPARATIST MOVEMENTS IN CHECHNYA TATARSTAN AND TUVA AND BY CENTRIFUGAL FORCES SEEKING AUTONOMY FOR SIBERIA AND SAKHALIN MOREOVER THE HIGHSTAKES SHOWDOWN BETWEEN REFORMERS AND REVANCHISTS IS LIKELY TO CONTINUE FOR MANY MONTHS WITH RUSSIA'S FUTURE COURSE IN QUESTION UNTIL NEW ELECTIONS ARE HELD THE WEST'S BEST OPTION IS TO PURSUE A YELTSINFIRST BUT NOT A RUSSIAFIRST POLICY THE US AND ITS ALLIES SHOULD BEGIN HEDGING THEIR BETS BY TAKING A FRESH LOOK AT UKRAINE WITH A POPULATION OF 52 MILLION AND EUROPE'S SECONDLARGEST STANDING ARMY AND OTHER NONRUSSIAN REPUBLICS AS A WELCOME BUFFER BETWEEN EUROPE AND A POTENTIALLY UNSTABLE RUSSIA TODAY UKRAINE'S COALITION GOVERNMENT OF DEMOCRATS AND EXCOMMUNISTS IS MORE COMMITTED TO A PROWESTERN FOREIGN POLICY AND FACES LESS OPPOSITION TO THE IMPLEMENTATION OF FREEMARKET REFORMS THAN ITS RUSSIAN COUNTERPART TO SHORE UP THE DEMOCRATIC PROCESS IN UKRAINE THE US AND OTHER DEMOCRACIES WILL HAVE TO MOVE BEYOND A ONEDIMENSIONAL FOCUS ON NUCLEAR NONPROLIFERATION TO A BROADER AGENDA THAT INCLUDES INCREASED ECONOMIC AID AND WESTERN SECURITY ASSURANCES TO HELP ASSUAGE UKRAINE'S LEGITIMATE FEARS ABOUT THREATS TO ITS NATIONAL AND ECONOMIC SECURITY FROM A MORE AGGRESSIVE POSTYELTSIN RUSSIA SUCH A COURSE WOULD STRENGTHEN THE HAND OF RUSSIA'S DEMOCRATS BY TILTING THE BALANCE IN FAVOR OF DEMOCRATIC FORCES ON RUSSIA'S BORDERS MR KARATNYCKY ASSISTANT TO THE PRESIDENT OF THE AFLCIO IS COAUTHOR OF NEW NATIONS RISING THE FALL OF THE SOVIETS AND THE CHALLENGE OF INDEPENDENCE TO BE PUBLISHED NEXT MONTH BY JOHN WILEY & SONS 9303160129 930316 WESTERN CO OF NORTH AMERICA HOUSTON WESTERN CO OF NORTH AMERICA SAID IT AGREED TO BUY THE ASSETS OF SMITH ENERGY SERVICES A DIVISION OF ALLIED PRODUCTS CORP OF CHICAGO TERMS WERE NOT DISCLOSED THE ASSETS OF SMITH ENERGY DENVER CONSIST OF PRESSURE PUMPING EQUIPMENT USED IN THE STIMULATION OF OIL AND GAS WELLS THE TRANSACTION WHICH IS CONTINGENT ON BOARD APPROVALS AND OTHER CONDITIONS IS EXPECTED TO BE COMPLETED IN EARLY APRIL WESTERN CO SAID THE ACQUISITION IS CONSISTENT WITH ITS STRATEGY TO EXPAND THE DOMESTIC PRESSURE PUMPING BUSINESS ADDING CAPACITY AND REDUCING FUTURE EQUIPMENT REPLACEMENT EXPENDITURES WESTERN CO IS AN OIL FIELD SERVICE COMPANY 9303160128 930316 LETTERS TO THE EDITOR DON'T COUNT CHICKENS WHEN THEY'RE STILL EGGS WAS GEORGE GILDER READING THE SAME BOOK I JUST FINISHED PAUL KENNEDY'S PREPARING FOR THE 21ST CENTURY NOTHING I READ PREPARED ME FOR MR GILDER'S COMPLETE DISMISSAL OF MR KENNEDY AS JUST ANOTHER ACADEMIC NIHILIST TRYING TO FRIGHTEN THIS GREAT NATION OF OURS YALE'S DR DOOM LOOKS INTO THE IMPOVERISHED FUTURE LEISURE & ARTS FEB 25 WHAT I READ IN PROF KENNEDY'S ECLECTIC ANALYSIS IS HIS CONCLUSION THAT THE ONLY CERTAINTY ABOUT THE NEXT CENTURY IS OUR INABILITY TO BE CERTAIN ABOUT ANYTHING THAT SEEMS A REASONABLE CONCLUSION ESPECIALLY WHEN WE EXAMINE HOW SOCIAL PHILOSOPHERS POLITICAL SCIENTISTS STATESMEN AND JUST PLAIN FOLKS VIEWED THE CENTURY TO COME IN 1900 THE GENERAL WISDOM THEN WAS THAT WE WERE ON THE VERGE OF A NEW DAWN OF HUMAN PROGRESS ONE THAT CLEARLY INDICATED MANKIND HAD FINALLY COME TO ITS SENSES AND PUT BEHIND IT ETHNIC RELIGIOUS AND NATIONAL CONFLICT THE AGE OF BARBARISM WAS OVER IT WAS CLEARLY PERCEIVED NEARLY 100 YEARS LATER THAT IS NOT WHAT WE HAVE ALL MR KENNEDY DOES FOR US IS TO REMIND THE WORLD THAT IT SHOULD NOT BE QUITE AS SMUG AS MR GILDER KUDOS TO GEORGE GILDER AMERICA'S BEST INFRASTRUCTURE PROGRAM EDITORIAL PAGE MARCH 2 FOR TELLING THE STORY OF MICHAEL MILKEN'S FABULOUS CONTRIBUTION TO AMERICA'S COMMUNICATIONS TECHNOLOGY WE ARE ALL GUILTY OF ALLOWING A HANDFUL OF JOURNALISTS AND US ATTORNEYS AND ONE JUDGE TO PORTRAY A GENIUS AS A CROOK FRAME HIM AND STEAL SEVERAL YEARS OF HIS LIFE AND 2 BILLION OF HIS MONEY ENVY WON AND AMERICA LOST WE TOOK OUR MOST PRODUCTIVE HUMAN RESOURCE A MAN WHO CREATED 100 BILLION IN WEALTH AND TAXABLE INCOME HIMSELF PAYING 1 BILLION IN PERSONAL INCOME TAXES OUT OF CIRCULATION FORTUNATELY FOR US WE GOT HIM AFTER HE GAVE US TIME WARNER MCI MCCAW CELLULAR TELECOMMUNICATIONS NEWS CORP VIACOM TURNER BROADCASTING CABLEVISION SYSTEMS ETC ETC 9303160127 930316 PEPPERAND SALT WE'D NEED THE WHOLE ROUND TABLE BUT YOU HAVE TO LOSE TO PROVE IT 9303160126 930316 AMSOUTH TO BUY CHARTER UNIT BIRMINGHAM ALA AMSOUTH BANCORP SAID IT SIGNED AN AGREEMENT TO ACQUIRE FIRST GULF BANK AND ITS PARENT COMPANY CHARTER BANKING CORP OF ST PETERSBURG FLA FOR ABOUT 128 MILLION UNDER THE AGREEMENT AMSOUTH WILL PAY 1550 FOR EACH SHARE OF FIRST GULF BANK COMMON STOCK THE PRICE REPRESENTS A PREMIUM OF 143 TIMES FIRST GULF'S DEC 31 1992 BOOK VALUE AMSOUTH SAID THE TRANSACTION IS EXPECTED TO BE COMPLETED BY THE END OF THIS YEAR PENDING APPROVAL BY REGULATORY AUTHORITIES AND OTHER CLOSING CONDITIONS 9303160125 930316 BUSINESS BRIEF COMPUADD TO CLOSE ALL ITS 110 STORES AND LAY OFF MORE THAN 600 EMPLOYEES AUSTIN TEXAS AFTER FIGHTING FOR MONTHS TO REVIVE ITS AILING COMPUTER RETAIL BUSINESS COMPUADD COMPUTER CORP SAID IT IS CLOSING ALL OF ITS 110 STORES AND LAYING OFF MORE THAN 600 PEOPLE THE MOVE REVERSES AN AGGRESSIVE FIVEYEAR EXPANSION PUSH BY THE CLOSELY HELD COMPANY WHICH HAD HOPED TO TRANSFORM ITSELF FROM A MARKETER OF MAILORDER CLONE COMPUTERS INTO A MAJOR NATIONAL RESELLER OF PERSONAL COMPUTERS BUT WITH ITS RETAIL SALES FLAT LAST YEAR AND THE COMPETITION IN MAILORDER INTENSIFYING COMPUADD SAID IT IS ABANDONING ITS EXPANSION PLANS TO FOCUS ON ITS PRIMARY BUSINESS IN THE FINAL ANALYSIS WE REALIZED THAT OUR CORE COMPETENCY IS DIRECT MARKETING SAID JOHN POPE A COMPUADD SPOKESMAN IT WAS SIMPLY A STRATEGIC DECISION PURE AND SIMPLE THOUGH RETAIL SALES ACCOUNTED FOR ABOUT 30 OF COMPUADD'S 5244 MILLION IN REVENUE LAST YEAR ANALYSTS SAY THE OPERATION WAS A MONEYLOSER SALES PER STORE AVERAGED ABOUT 14 MILLION LAST YEAR SHARPLY LOWER THAN THE 36 MILLION PER STORE GENERATED BY COMPUSA A DALLASBASED SUPERSTORE CHAIN THAT COMPETES AGAINST COMPUADD IN SEVERAL MARKETS FURTHER ANALYSTS SAY COMPUADD'S PRICES WERE TOO HIGH ITS STORES TOO SMALL AND ITS SELECTION WHICH WAS LIMITED TO COMPUADD MACHINES TOO NARROW IN RECENT MONTHS RECOGNIZING THAT THEIR RETAIL BUSINESS NEEDED CHANGING COMPUADD OFFICIALS HAD BEGUN TO TALK ABOUT A RESTRUCTURING THEY ABANDONED PLANS TO GROW THE BUSINESS TO 200 STORES THIS YEAR AND PLEDGED TO EXPAND THEIR INVENTORY BEYOND COMPUADDMADE MACHINES THE COMPANY EVEN TALKED ABOUT CONVERTING SOME OF ITS STORES TO SUPERSTORE FORMATS ALL IN HOPES OF BOOSTING THE COMPANY'S PC MARKETSHARE ABOVE ITS CURRENT 3 THOUGH COMPUADD DECLINED TO SAY HOW THE SHUTDOWNS WOULD AFFECT PROFITABILITY ALL OF THE STORES ARE EXPECTED TO CLOSE THIS YEAR MR POPE SAID REVENUE THIS YEAR IS EXPECTED TO FALL AS MUCH AS 43 COMPARED WITH 1992 TO BETWEEN 300 MILLION AND 350 MILLION 9303160124 930316 MONDAY'S MARKETS BONDS DROP STOCKS ADVANCE DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES CONTINUED TO SINK ON FEARS OF HIGHER INFLATION BUT STOCK PRICES ROSE IN THE SLOWEST TRADING SESSION SO FAR THIS YEAR THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1459 POINTS TO 344241 STANDARD & POOR'S 500STOCK INDEX ROSE 160 TO 45143 AND THE NASDAQ COMPOSITE INDEX ADDED 243 TO 69521 DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST SECURITIES/BUTCHER & SINGER IN RICHMOND VA SAID THAT ALTHOUGH HE FORESEES INFLATION MERELY INCHING HIGHER IT WILL BE ENOUGH TO SQUELCH THE BULL MARKET IN BONDS WE THINK THE BOND RALLY WAS OVERDONE ANYWAY AND LONGTERM YIELDS WILL BACK UP TO 7 1/4 TO 7 3/8 BY THE MIDDLE OF THE YEAR MR HAYS SAID HE PREDICTED STOCKS WILL START OUTPERFORMING BONDS WE'VE SEEN IMPROVED EARNINGS IN EACH OF THE LAST FOUR QUARTERS AND EVERY QUARTER THIS YEAR WILL SHOW SOME IMPROVEMENT MR HAYS PREDICTED STOCKS COULD GET A FURTHER BOOST HE SAID FROM A LOOSENING OF SOME BANK LENDING RESTRICTIONS ANY TIME YOU ENCOURAGE LENDING YOU ENCOURAGE ECONOMIC RECOVERY MR HAYS ADDED BUT HE PREDICTS THE NEXT STOCK RALLY WON'T START FOR TWO TO FOUR WEEKS MEANWHILE THE MARKET PROBABLY WILL PULL BACK A LITTLE HE NOTED THAT THE INDUSTRIAL AVERAGE HAS CLIMBED 130 POINTS OR 4 SINCE FEB 18 THE MARKET GOT A LITTLE AHEAD OF ITSELF MR HAYS SAID BUT ANY PAUSE SHOULD BE USED TO AGGRESSIVELY BUY STOCKS WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 005 TO 9760 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME SHRANK TO 1927 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1029 ISSUES ROSE AND 842 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST ALMOST A HALF POINT OR 5 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16630 MARKS AND 11860 YEN COMPARED WITH 16650 MARKS AND 11803 YEN FRIDAY 9303160123 930316 FINANCING BUSINESS WALL DATA INC WALL DATA INC REDMOND WASH A MAKER OF SOFTWARE FOR PERSONAL COMPUTERS SAID IT PLANS AN INITIAL PUBLIC OFFERING OF 28 MILLION SHARES OF COMMON STOCK AT 20 A SHARE THE COMPANY PLANS TO USE THE PROCEEDS FOR GENERAL PURPOSES MANAGING UNDERWRITERS ARE BEAR STEARNS & CO AND ROBERTSON STEPHENS & CO OF THE SHARES 880000 ARE BEING OFFERED BY SHAREHOLDERS AND THE REST BY THE COMPANY 9303160122 930316 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MARCH 12 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER TEXAS WILL REDEEM ON APRIL 1 1993 250000 OF ITS 61 SERIES A 1976 POLLUTION CONTROL REVENUE BONDS DUE APRIL 1 2006 TEXAS COMMERCE BANK NA HOUSTON IS TRUSTEE CHEVRON CORP WILL REDEEM ON APRIL 15 1993 ITS 8 1/4 US DOLLAR BEARER NOTES OF 1986/96 BANKERS TRUST COMPANY LONDON IS AGENT BANK PUBLIC SERVICE ELECTRIC & GAS CO WILL REDEEM ON APRIL 14 1993 ITS 9 3/4 SERIES S FIRST AND REFUNDING MORTGAGE BONDS DUE 1996 AND ITS OUTSTANDING UNDER SUPPLEMENTAL INDENTURE DATED JAN 1 1986 CHASE MANHATTAN BANK NEW YORK IS PAYING AGENT 9303160120 930316 MARKETING & MEDIA ITOCHU IWERKS ARE BETTING MOVIEGOERS WILL GO MORE FOR COSTLY CINETROPOLIS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD JAPANESE TRADER ITOCHU CORP HOPING TO ENHANCE MOVIEGOING IS BACKING AN IDEA CALLED CINETROPOLIS THAT COMBINES GIANT SCREENS AND THE LATEST IN MOTIONSIMULATION AND INTERACTIVE VIRTUAL REALITY RIDES THE ENTERTAINMENT CENTERS COSTING UP TO 30 MILLION EACH ARE THE BRAINCHILD OF IWERKS ENTERTAINMENT A BURBANK CALIF MAKER OF GIANTSCREEN MOVIES AND SIMULATOR RIDES FOR EXPOSITIONS AND THEME PARKS ITOCHU HAS AGREED TO HELP IWERKS DEVELOP 30 CINETROPOLIS COMPLEXES THROUGHOUT ASIA BY THE END OF THE DECADE IN EXCHANGE FOR AN UNSPECIFIED EQUITY INVESTMENT IN CLOSELY HELD IWERKS IWERKS'S PLANS ALSO CALL FOR DEVELOPING 30 CENTERS IN THE US AND 15 IN EUROPE THOUGH FUNDING FOR THOSE PROJECTS HASN'T BEEN ARRANGED WITH FILM ADMISSIONS ON THE DECLINE DOWN 18 IN THE US LAST YEARIWERKS AND ITOCHU WANT TO REDEFINE WHAT IT MEANS TO GO TO THE MOVIES AND IF THE COMPANIES ARE RIGHT CUSTOMERS WILL LINE UP TO PAY 15 EACH DOUBLE THE PRICE OF MOVIE TICKETS IN MANY CITIES TO SEE BIRD'SEYE FLIGHTS THROUGH THE GRAND CANYON PROJECTED ON A 60FOOTSCREEN SIMULATED ROLLER COASTER RIDES AND MADONNA'S VOGUEING ON A CIRCULAR THEATER'S NINE VIDEO SCREENS ALL WILL BE UNDER ONE ROOF ALTHOUGH TERMS ARE SKETCHY ITOCHU WILL PAY A MULTIMILLIONDOLLAR SUM FOR RIGHTS TO IWERKS'S PRODUCTS IN ASIA IWERKS SAID ITOCHU FORMERLY C ITOH & CO WON'T NECESSARILY DEVELOP AND OWN ALL 30 SITES HOWEVER IT WILL LINK IWERKS WITH PARTNERS IN ASIA WHO WILL BUILD AND OWN COMPLEXES AND PAY ROYALTY FEES TO IWERKS IWERKS HOPES TO OPEN ITS FIRST ASIAN SITE NEXT YEAR AND THREE MORE IN 1995 ITOCHU'S FIRST FORAY IN THE AMERICAN ENTERTAINMENT INDUSTRY WAS ITS 500 MILLION INVESTMENT IN TIME WARNER INC IN 1991 MOVIE THEATERS ARE USING 60YEAROLD TECHNOLOGY AND YET THERE ARE ALL THESE NEW THINGS AVAILABLE SAYS IWERKS CHAIRMAN STAN KINSEY WHO FOUNDED IWERKS IN 1986 WITH FELLOW WALT DISNEY CO DEFECTOR DON IWERKS WE FIGURED WE COULD COMBINE ALL OF THESE AND CREATE A MINITECHNOLOGYBASED URBAN THEME PARK STILL IT'S QUESTIONABLE WHETHER VISITORS WILL SHELL OUT THE BUCKS FOR SOMETHING THAT'S NEITHER A FULLFLEDGED PARK NOR A STARSTUDDED FEATURELENGTH FILM UNLESS YOU HAVE AN AWFUL LOT OF SOFTWARE TO SUPPORT A COMPLEX WITH THAT KIND OF CAPITAL REQUIREMENT THERE'S CERTAINLY AN ELEMENT OF RISK SAYS ROY AARON PRESIDENT OF LOS ANGELESBASED SHOWSCAN CORP WHICH ALSO MAKES SIMULATOR RIDES BIGSCREEN MOVIES AND CIRCULAR THEATERS ALTHOUGH NOT ALL UNDER ONE ROOF INDEED IWERKS HAS HAD DIFFICULTY SELLING THE CINETROPOLIS CONCEPT THOUGH THE COMPANY HAS VENTURE CAPITAL BACKING FROM SILICON VALLEY'S GLENWOOD CAPITAL MANAGEMENT AND SUN MICROSYSTEMS INC AND A MARKETING AGREEMENT WITH HOLLYWOOD'S CREATIVE ARTISTS AGENCY IT HAS TAKEN THE COMPANY THREE YEARS TO LURE INVESTORS FOR ITS THEATER OF THE FUTURE ONE TEST WILL COME THIS FALL WHEN IWERKS OPENS ITS FIRST CINETROPOLIS AT FOXWOODS CASINO IN LEDYARD CONN OWNED BY THE MASHANTUCKET PEQUOT INDIAN TRIBE THAT CINETROPOLIS BEING BUILT FOR ABOUT 15 MILLION IS BEING DEVELOPED SEPARATELY FROM THE ITOCHU AGREEMENT WITH IWERKS HAVING PARTIAL OWNERSHIP AND GETTING ROYALTIES AND MANAGEMENT FEES UNDER A 20YEAR AGREEMENT THE COMPLEX WILL FEATURE A 30MINUTE BIGSCREEN TRAVELOG A FOURMINUTE TURBO TOUR MOTIONSIMULATOR RIDE AND NINE CONTIGUOUS SCREENS IN THE CIRCULAR VIDEO 360 DANCE THEATER LIVE SHOWS MAY ALSO PLAY IN THE 1800SEAT BIGSCREEN AREA AND A TOWN SQUARE OF EXHIBITS SHOPS AND RESTAURANTS WILL STAND IN THE LOBBY AS THE HUB OF THE THEATERS ASIAN CINETROPOLIS COMPLEXES WILL INCLUDE A VIRTUALREALITY RIDE IWERKS IS DEVELOPING WITH SALT LAKE CITYBASED EVANS & SUTHERLAND CALLED VIRTUAL ADVENTURES THE ATTRACTION PUTS VISITORS INTO A COMPUTERGENERATED UNDERWATER ENVIRONMENT THE CINETROPOLIS ATTRACTIONS ARE DESIGNED TO CHANGE ABOUT EVERY FOUR MONTHS IWERKS SAID THAT ITOCHU'S ASIAN COMMITMENT GIVES IWERKS A STREAM OF ROYALTY FEES TO PRODUCE NEW CINETROPOLIS FILMS A 5 MILLIONTO15 MILLION ANNUAL INVESTMENT THROUGH ITS ARRANGEMENT WITH CREATIVE ARTISTS IWERKS IS SEEKING BIGNAME TALENT SINGER MICHAEL BOLTON HAS SIGNED FOR A CONCERT VIDEO AND IWERKS LICENSED THE ROBOCOP MOVIE CHARACTER FROM ORION PICTURES TO USE IN ITS SIMULATOR ATTRACTIONS 9303160119 930316 MARKETING BRIEF NOTED NEWSPAPERS THE NEW YORK TIMES WILL RAISE THE NEWSSTAND PRICE OF ITS MONDAY THROUGH SATURDAY EDITIONS IN THE NORTHEAST AND MIDDLE ATLANTIC STATES TO 75 CENTS FROM 50 CENTS STARTING APRIL 5 THE INCREASE AFFECTS NEITHER THE GREATER NEW YORK AREA NOR THE HOME DELIVERY PRICE IN STATES RUNNING FROM MAINE DOWN TO VIRGINIA NEW YORK TIMES CO CITED HIGHER NEWSPRINT AND DISTRIBUTION COSTS 9303160118 930316 BUSINESS BRIEF CONAGRA INC FIRM ESTIMATES PROFIT ROSE 11 IN FISCAL THIRD QUARTER CONAGRA INC SAID IT ESTIMATES EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 ROSE 11 TO 93 MILLION OR 38 CENTS A SHARE FROM 841 MILLION OR 33 CENTS A SHARE A YEAR AGO FOR THE FIRST NINE MONTHS OF FISCAL 1993 CONAGRA EXPECTS TO REPORT THAT EARNINGS ROSE 12 TO 295 MILLION OR 119 A SHARE FROM 2645 MILLION OR 107 A SHARE THE OMAHA NEB FOOD COMPANY SAID THE EXPECTED THIRDQUARTER RESULTS WILL KEEP IT ON TRACK TOWARD ITS 13TH CONSECUTIVE YEAR OF RECORD PERSHARE EARNINGS 9303160117 930316 INTERNATIONAL TWO US CONCERNS MAY BID ON MEXICO'S TV NETWORKS MEXICO CITY TWO LEADING US MEDIA COMPANIES ARE EMERGING AS POTENTIAL PLAYERS IN THE PRIVATIZATION OF MEXICO'S TWO STATERUN TELEVISION NETWORKS NEWS CORP'S FOX INC UNIT IS INVOLVED IN SERIOUS DISCUSSIONS ABOUT JOINING A BIDDING GROUP HEADED BY MULTIVISION A MEXICAN CABLE TELEVISION SERVICE ACCORDING TO THE MEXICAN COMPANY'S VICE PRESIDENT JOAQUIN VARGAS GUAJARDO FOX WOULDN'T COMMENT BUT PEOPLE FAMILIAR WITH THE PRIVATIZATION SAY NEWS CORP CHAIRMAN RUPERT MURDOCH VISITED MEXICO CITY LAST FALL TO EXPLORE OPPORTUNITIES PRESENTED BY THE PRIVATIZATION MEANWHILE CAPITAL CITIES/ABC INC IS TALKING WITH GUADALAJARAN INDUSTRIALIST RAYMUNDO GOMEZ FLORES ABOUT JOINING AN INVESTMENT GROUP THAT HE IS FORMING ACCORDING TO PEOPLE CLOSE TO THE PRIVATIZATION NEITHER CAPITAL CITIES NOR MR GOMEZ FLORES WOULD COMMENT BUT THESE SOURCES SAY JEREMIAH SULLIVAN SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION FOR ABC VIDEO ENTERPRISES HAS VISITED MEXICO TO INVESTIGATE A POSSIBLE VENTURE WITH MR GOMEZ FLORES UNDER PRIVATIZATION RULES FOREIGN INVESTORS WOULD BE LIMITED TO A MINORITY STAKE FIVE MEXICANLED INVESTOR GROUPS ARE PREPARING BIDS FOR THE TWO NETWORKS WHICH HAD BEEN PACKAGED WITH SEVERAL OTHER GOVERNMENTOWNED MEDIA COMPANIES ANALYSTS SAY THE PACKAGE WHICH IS EXPECTED TO BE SOLD BY MAY COULD FETCH AS MUCH AS 500 MILLION 9303160116 930316 MARKETING & MEDIA ADVERTISING VOLVO IN UNVEILING SPORTY MODEL SEEKS TO SOFTPEDAL SAFETY IMAGE BY KEVIN GOLDMAN FOR OVER A QUARTER OF A CENTURY VOLVO HAS METICULOUSLY AND METHODICALLY CRAFTED A SINGULAR IMAGE AS THE SAFEST CAR ON THE ROAD PERHAPS ALL TOO WELL NOW SAFETY IS TAKING A BACK SEAT AT THE SWEDISH AUTOMAKER'S ADVERTISING IN PREPARING TO INTRODUCE ITS SPORTY 850 MODEL VOLVO DISCOVERED THAT IT HAD DONE SUCH A GOOD JOB IN CHANTING ITS SAFETY MANTRA THAT CONSUMERS CONJURED UP IMAGES OF BOXY STEELREINFORCED COMBINATION SAFES AND US ARMY TANKS INSTEAD OF RACIER AND FRANKLY MORE DESIRABLE IMAGES SO VOLVO HAS EMBARKED ON A NEW AND RISKY STRATEGY TO LAMPOON THE IMAGE IT HAS ALWAYS CULTIVATED IN PRINT AND TELEVISION ADS FOR THE 850 SEDAN ONE COMMERCIAL BEGINS WITH A COUPLE DRIVING A STURDY TANK AND THE LINE DRIVING A VOLVO USUALLY INSPIRES A CERTAIN SENSE OF SAFETY ANOTHER HAS A BOX ON WHEELS SLIDE ACROSS THE SCREEN IF THIS IS HOW YOU THINK OF VOLVO WE MAY HAVE THE CAR TO CHANGE YOUR THINKING THE ONLY WAY TO CUT THROUGH THE STRONG IMPRESSION WAS TO ATTACK THE IMAGE HEADON THOUGH TONGUE IN CHEEK SAYS RON BERGER A PARTNER IN MESSNER VETERE BERGER MCNAMEE SCHMETTERER VOLVO'S AD AGENCY OF TWO YEARS MORE ADS ARE ON THE WAY ONE FEATURES A TORTOISE WITH A LICENSE PLATE AND URGES VIEWERS TO AVOID THINKING OF VOLVO IN THIS POKEY WAY IT'S VERY RARE THAT THE VERY THING PEOPLE THINK OF AS POSITIVE BECOMES SOMETHING OF A BARRIER CONCEDES MR BERGER WHO FRETS THAT STRENGTH AND SAFETY TOOK ON TONES OF PLODDING AND SLUGGISH DAN GALLAGHER VOLVO'S MANAGER OF MARKETING SERVICES ADDS WE COULDN'T BELIEVE HOW SUCCINCTLY CONSUMERS DEFINED US CHANGING AN AD CAMPAIGN ALWAYS INVOLVES GAMBLES SLOGANS FOR INSTANCE ARE CHANGED PERIODICALLY IT IS RARE FOR A DEEPER CHANGE SUCH AS THE ONE EMBARKED BY VOLVO BUT IT ISN'T AN UNWANTED GAMBLE VOLVO TOOK IT ON THE CHIN TWO YEARS AGO WHEN ITS IMAGE WAS TARNISHED AFTER VOLVO AND ITS THENAD AGENCY WPP GROUP'S SCALI MCCABE SLOVES WERE ACCUSED OF RIGGING A DEMONSTRATION WITH VOLVO AND SOCALLED MONSTER TRUCKS THE AD AGENCY RESIGNED THE ACCOUNT BUT IT LATER PICKED UP MERCEDESBENZ NOR IS VOLVO ABANDONING ITS SAFETY IMAGE LIKE UNWELCOME BAGGAGE ON THE SIDE OF THE ROAD IN THE WORKS IS A NEW SERIES OF SPOTS ON HOW VOLVOS SAVED LIVES THAT ARE EXPECTED TO BEGIN AIRING NEXT MONTH THE BRAND'S UNIFYING SLOGAN DRIVE SAFELY CONTINUES OPERATORS AT ITS NORTH AMERICAN BASE IN ROCKLEIGH NJ DUTIFULLY UTTER THE SLOGAN WHEN THEY ANSWER THE PHONES BUT VOLVO'S AD AGENCY FIGURES THE SAFETY IMAGE HAS FLOODED THE MARKET AND FOR VOLVO HAS STALLED SALES WHILE VOLVO WAS ONCE THE LONE VOICE PUSHING SAFE FEATURES SUDDENLY AIR BAGS ARE POPPING OUT OF DASHBOARDS OF MYRIAD OTHER MODELS CHRIS CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP SAYS WITH THE NEW ADS VOLVO IS ATTEMPTING TO CONVINCE DRIVERS THAT IT HAS EVOLVED INTO A SEDAN THAT IS FUN TO DRIVE VOLVO HAD TO FIND ANOTHER MESSAGE SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE A FORECASTING AND CONSULTING COMPANY BASED IN LITTLE FALLS NJ AND SHE SAYS IT HAS THE ACTUAL PLEASURABLE DRIVING EXPERIENCE VOLVO USED TO BE THE ONLY COMPANY THAT WOULD MENTION SAFETY IN ADS BUT THAT POSITION WAS SERIOUSLY UNDERMINED WHEN OTHERS JOINED THE CHORUS VOLVO SAYS MARKETING CONSULTANT JOSEPH G SMITH OF OXTOBY SMITH IS A SOUND VEHICLE BUT ONE THAT LACKS CHARM IT HAS THAT STODGY AND SAFE IMAGE HE SAYS AND SINCE THE WHOLE WORLD HAS CAUGHT UP WITH VOLVO'S MESSAGE OF SAFETY VOLVO'S ADVERTISING POSITION HAS TO EVOLVE AND GROW INTO ONE THAT STRETCHES ITS OTHER ATTRIBUTES TO BE SURE SAFETY IS STILL ADDRESSED IN THE ADS BUT IT NO LONGER TAKES CENTER STAGE INSTEAD THERE ARE SHOTS OF A RED VOLVO ZOOMING ALONG A TRACK AND DESERT FIELD SHOTS THAT COULD BE FOUND IN WELL PRACTICALLY EVERY OTHER CAR COMMERCIAL THERE ARE ONSCREEN WRITTEN WARNINGS FOR ORDINARY DRIVERS NOT TO MANEUVER A VOLVO IN SUCH A FAST MANNER BUT VOLVO CLEARLY NEEDS A NEW TACK FOR TWO YEARS IT HAS BEEN UNDER PRESSURE FROM COMPETITORS IN THE LUXURY 20000 TO 30000 RANGE INCLUDING MAZDA MOTOR OF AMERICA AND AMERICAN HONDA MOTOR'S ACURA LEGEND VOLVO'S SALES REMAIN WELL BELOW ITS 1986 PERFORMANCE WHEN 113257 VEHICLES MOVED OFF THE LOT LARGELY BECAUSE YUPPIES WITH FAMILIES EMBRACED THE SAFETY MESSAGE LAST YEAR VOLVO SOLD ONLY 67420 CARS UP JUST 03 FROM 1991 THIS WEEK PARENT VOLVO AB POSTED A RECORD PRETAX LOSS OF ABOUT 430 MILLION FOR 1992 COMPARED WITH A PROFIT OF ABOUT 140 MILLION THE YEAR BEFORE THIS YEAR IS OFF TO A PROMISING START HOWEVER MAINLY BECAUSE OF THE 850 MODEL SALES FOR THE FIRST TWO MONTHS THIS YEAR ARE UP A ROBUST 25 TO 13043 AUTOS VOLVO DECLINED TO COMMENT SPECIFICALLY BUT SAYS IT WILL INCREASE AD SPENDING FROM LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING VOLVO SPENT 371 MILLION IN THE FIRST 11 MONTHS OF 1992 UP 13 FROM A YEAR EARLIER CIBAGEIGY CORP AGREED TO PAY 550000 TO 11 STATES TO SETTLE CHARGES THAT CONSUMER PRINT ADS FOR ITS HABITROL NICOTINE PATCH IMPLIED THAT THE PRESCRIPTION PRODUCT IS A MAGIC BULLET FOR QUITTING SMOKING IF YOU'RE TIRED OF QUITTING AND FAILING THIS COULD BE YOUR CHANCE SAID ONE AD IN A SERIES ENTITLED PORTRAIT OF A QUITTER THE AD CONTINUED IF YOU'VE GOT THE WILL NOW YOU CAN HAVE THE POWER HABITROL AGENCY GREY ADVERTISING NEW YORK CREATED THE ADS WHICH RAN LAST YEAR IN NEWSPAPERS AND WEEKLY MAGAZINES THOSE ADS FALSELY IMPLIED THAT THE PATCH WAS EXTREMELY EFFECTIVE BY ITSELF SAFE TO USE AND CAUSED NO SERIOUS SIDE EFFECTS CHARGED THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE THE ADS ALSO DIDN'T MENTION RISKS TO PREGNANT WOMEN PEOPLE WITH CARDIOVASCULAR DISEASE OR SMOKERS WHO CONTINUE TO PUFF WHILE WEARING THE PATCH CIBA A SUMMIT NJ UNIT OF CIBAGEIGY LTD OF SWITZERLAND SAID IT HAD ALREADY BEGUN MAKING CHANGES OUTLINED IN THE AGREEMENT CIBA AGREED TO DISCLOSE CLEARLY CONSPICUOUSLY AND IN PLAIN LANGUAGE THAT A PERSON SHOULDN'T SMOKE WHILE WEARING THE PATCH AND THAT IT HASN'T BEEN TESTED IN LONGTERM STUDIES OR ON PEOPLE UNDER AGE 18 ATTORNEYS GENERAL FROM ARIZONA CALIFORNIA ILLINOIS IOWA MASSACHUSETTS MISSOURI MINNESOTA NEW MEXICO NORTH CAROLINA AND TEXAS ALSO PARTICIPATED IN THE AGREEMENT 9303160115 930316 MARKETING & MEDIA HEARST PICKS SIKES TO HEAD ITS UNIT FOR NEW MEDIA BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEARST CORP NAMED ALFRED C SIKES WHO RESIGNED IN JANUARY AS CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION TO HEAD A SEPARATE UNIT FORMED TO EXPLORE NEW MEDIA AND TECHNOLOGICAL BREAKTHROUGHS HEARST SAID ITS NEW MEDIA AND TECHNOLOGY GROUP WILL WORK WITH THE COMPANY'S MAGAZINE TELEVISION NEWSPAPER AND ENTERTAINMENT GROUPS TO ADAPT EDITORIAL AND PROGRAMING FORMATS TO NEWLY EMERGING ELECTRONIC DELIVERY SYSTEMS IT WILL SEEK ALLIANCES WITH COMPANIES HERE AND ABROAD THAT USE NEW AND REDEFINED TECHNOLOGIES TO PROVIDE INFORMATION EDUCATION AND ENTERTAINMENT TO CONSUMERS FRANK A BENNACK JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HEARST SAID IN AN INTERVIEW THAT THE COMPANY IS INTERESTED IN FINDING PARTNERS TO FORM A HIGHCAPACITY INTERACTIVE ELECTRONIC SUPERHIGHWAY SIMILAR TO THAT RECENTLY PROPOSED BY TIME WARNER INC HEARST IS IN DISCUSSIONS WITH SEVERAL COMPANIES ON POTENTIAL ALLIANCES SOME OF WHICH COULD BE ANNOUNCED LATER THIS YEAR HE SAID HEARST HAS CHOSEN AN ESPECIALLY ENTHUSIASTIC FAN OF TECHNOLOGY TO GUIDE THE NEW OPERATION IN HIS FOUR YEARS AS HEAD OF THE FCC MR SIKES 53 YEARS OLD WAS KNOWN AS A CHAMPION OF NEW TECHNOLOGIES UNDER HIS WATCH THE PANEL OPENED UP NEW RADIO FREQUENCIES FOR EMERGING COMMUNICATIONS IT ALSO SUPPORTED DEVELOPMENT OF VIDEO DIAL TONE SERVICE FOR DELIVERING IMAGES OVER THE TELEPHONE NETWORK A NEW GENERATION OF CELLULAR PERSONAL COMMUNICATIONS DEVICES AND DIGITAL HIGHDEFINITION TELEVISION I TOOK A VERY PROACTIVE POSITION MR SIKES SAID WHILE HE RECEIVED OFFERS FROM SEVERAL TELECOMMUNICATIONS COMPANIES HE DECIDED TO JOIN HEARST HE SAID BECAUSE THE MOST EXCITING POTENTIAL IS ON THE SOFTWARE SIDE WITH PUBLISHING AND ENTERTAINMENT AND INFORMATION HEARST ONE OF THE WORLD'S LARGEST CLOSELY HELD MEDIA COMPANIES WITH ANNUAL REVENUE EXCEEDING 2 BILLION PUBLISHES 13 CONSUMER MAGAZINES AND 12 DAILY NEWSPAPERS IT ALSO OWNS TWO BOOK PUBLISHING COMPANIES THE COMPANY OPERATES RADIO AND TV STATIONS AS WELL AND IS A PARTNER IN THE LIFETIME ARTS & ENTERTAINMENT AND ESPN CABLE NETWORKS HEARST HOPES TO USE MR SIKES'S POLITICAL CLOUT AND REGULATORY KNOWHOW GAINED DURING HIS FCC DAYS AL WAS UNIQUELY PLACED AT THE COMMISSION SAID MR BENNACK HE KNOWS THE PRINCIPAL PLAYERS AND HE CAN HELP US DETERMINE ON A TECHNOLOGY AND REGULATORY BASIS WHICH PROJECTS TO PURSUE 9303160114 930316 INTERNATIONAL HSBC HOLDINGS POST 68 RISE IN PROFIT FOR '92 BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG HSBC HOLDINGS PLC THE PARENT COMPANY OF HONGKONG & SHANGHAI BANKING CORP REPORTED A 68 RISE IN 1992 PROFIT INCLUDING A MAJOR CONTRIBUTION FROM MIDLAND BANK PLC THE BRITISH HOLDING COMPANY SAID ITS PROFIT JUMPED TO 1432 BILLION HONG KONG DOLLARS US185 BILLION FROM HK852 BILLION IN 1991 IN LINE WITH ANALYSTS' EXPECTATIONS MIDLAND DURING ITS SIX MONTHS AS A SUBSIDIARY CONTRIBUTED HK216 BILLION OR 15 OF THE GROUP'S TOTAL EARNINGS ANALYSTS SAY THAT MIDLAND'S CONTRIBUTION TO GROUP EARNINGS WILL GROW EVEN BIGGER THIS YEAR AND NEXT YEAR AMID SIGNS THAT THE GROUP'S GROWTH IN ASIA MAY HAVE PEAKED MIDLAND IS BASED IN BRITAIN AND ANALYSTS SAY THE FUTURE PERFORMANCE OF HSBC IS INCREASINGLY TIED TO THE BRITISH AND EUROPEAN ECONOMIES AT A NEWS CONFERENCE MONDAY HSBC CHAIRMAN WILLIAM PURVES REPEATEDLY SAID THAT THE GROUP'S EARNINGS PROSPECTS DEPEND ON THE UK ECONOMIC OUTLOOK THERE ARE EARLY SIGNS OF SOME IMPROVEMENTS BUT WHETHER THESE SIGNS WILL GROW REMAINS TO BE SEEN HE SAID AT A TIME WHEN POLITICS IS THE HONG KONG MARKET'S OVERRIDING FACTOR HSBC'S DECISION A YEAR AGO TO DIVERSIFY ITS ASSETS OUTSIDE OF HONG KONG WITH THE MIDLAND ACQUISITION APPEARS TO BE PAYING OFF ON MONDAY WHEN TENSION RENEWED BETWEEN CHINA AND BRITAIN OVER THE FUTURE OF HONG KONG HSBC SHARES WHICH ARE NO LONGER CONSIDERED A PURE HONG KONG PLAY SLID ONLY 22 WHEN THE MARKET AS A WHOLE FELL 51 HSBC'S EARNINGS REPORT CAME OUT AFTER THE HONG KONG MARKET'S CLOSE IN LONDON TRADING HSBC SHARES ROSE 20 PENCE OR 33 TO 624 PENCE HSBC'S 1992 EARNINGS REFLECTED A GAIN OF HK32 BILLION IN THE DISPOSAL OF ITS 10 STAKE IN CATHAY PACIFIC AIRWAYS HONG KONG'S FLAG CARRIER THE RESULTS WERE ALSO HELPED BY ROBUST GROWTH IN NONINTEREST INCOME THIS GROWTH WAS DERIVED MOSTLY FROM FOREIGNEXCHANGE GAINS WHICH WERE STRONG BECAUSE OF LAST YEAR'S VOLATILE CURRENCY MARKETS THE GROUP DECLARED A FINAL DIVIDEND OF 142 PENCE A SHARE MAKING A TOTAL 1992 DIVIDEND OF 19 PENCE UP 50 FROM 1991 ANALYSTS SAY THERE ARE SIGNS THAT THE GROUP'S STRONG EARNINGS GROWTH IN ASIA WOULD SLOW PROFITS AT HONGKONG BANK THE GROUP'S BIGGEST SUBSIDIARY AND THROUGH WHICH THE GROUP HOLDS ITS ASSETS IN THE ASIANPACIFIC REGION REPORTED A STRONG 35 RISE IN PROFIT TO HK118 BILLION LAST YEAR BUT THE BANK'S TOTAL ASSETS GREW ONLY 36 REFLECTING SLOWER LOAN GROWTH IN HONG KONG THE BANK'S BIGGEST MARKET BANKS IN HONG KONG IN 1992 HAD A VERY GOOD YEAR IT'S QUITE DIFFICULT TO SUSTAIN THAT KIND OF RESULTS SAID JOHN GRAY HONGKONG BANK'S CHAIRMAN HSBC'S 1993 OUTLOOK HINGES LARGELY ON THE LEVEL OF BADDEBT PROVISIONS AT THE GROUP'S SUBSIDIARIES ABROAD LAST YEAR THE GROUP WAS BATTERED BY SEVERAL BIG HITS INCLUDING THOSE RELATED TO ITS EXPOSURE TO OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN PROPERTY CONCERN HSBC SAID ITS 1992 PROVISIONS AGAINST O&Y WERE US450 MILLION OR ABOUT 60 OF THE GROUP'S TOTAL EXPOSURE TO THE BORROWER TOTAL PROVISIONS FOR BAD AND DOUBTFUL DEBTS STOOD AT 54 OF THE GROUP'S TOTAL LOANS AT THE END OF 1992 UP FROM THE AVERAGE OF 355 IN THE PREVIOUS FOUR YEARS MR PURVES CONCEDED THAT THE INCREASE WAS SIGNIFICANT AND SAID HE EXPECTS THE LEVEL OF SUCH PROVISIONS TO DROP IN 1993 INDEED EXPECTATIONS OF REDUCED LOAN PROVISIONS ABROAD HAVE LED ANALYSTS TO PROJECT A 30 RISE IN GROUP EARNINGS TO ABOUT HK185 BILLION THIS YEAR THANKS TO THE LOAN PORTFOLIO'S IMPROVED QUALITY MARINE MIDLAND BANKS INC THE GROUP'S WHOLLY OWNED UNIT IN THE US MADE A PROFIT OF US109 MILLION LAST YEAR AGAINST BIG LOSSES FOR TWO CONSECUTIVE YEARS 9303160113 930316 MERRILL NEARS A 500 BILLION MILESTONE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S ANOTHER MILESTONE IN INDIVIDUAL INVESTORS' LOVE AFFAIR WITH WALL STREET MERRILL LYNCH & CO THE NATION'S BIGGEST BROKERAGE FIRM EXPECTS SOON TO HAVE 500 BILLION IN US CUSTOMER ASSETS THAT RECORD ONEHALF TRILLION DOLLARS UNDER MERRILL'S ROOF COMES JUST FROM RETAIL CUSTOMERS INDIVIDUAL INVESTORS AND SMALL COMPANIES IT DOESN'T INCLUDE MERRILL'S OWN BIG SECURITIES INVENTORY THAT'S MORE THAN THE GROSS DOMESTIC PRODUCT OF MANY NATIONS MERRILL CROWED IN AN INTERNAL MEMO FOR EMPLOYEES LAST WEEK COUNTING MONEY FROM OVERSEAS CUSTOMERS THE BROKERAGE FIRM WILL HIT THE 500 BILLION MILESTONE EVEN MORE QUICKLY IN THE NEXT MONTH OR SO SAYS JOHN L STEFFENS MERRILL'S HEAD OF BROKERAGE OPERATIONS HE SAYS MERRILL'S CUSTOMER ASSETS UNDER ITS CONTROL INCLUDING STOCKS BONDS CASH MUTUAL FUNDS ANNUITIES AND OTHER INVESTMENTS ROSE 13 BILLION IN THE FIRST TWO MONTHS OF 1993 TO 488 BILLION WORLDWIDE MOST OF THAT 469 BILLION COMES FROM INVESTORS IN THE US IN COMPARISON PRIMERICA CORP'S SMITH BARNEY SHEARSON THE NATION'S SECONDBIGGEST BROKERAGE FIRM WILL HAVE 310 BILLION UNDER CONTROL ACCORDING TO A SMITH BARNEY SHEARSON SPOKESWOMAN FIDELITY INVESTMENTS THE NATION'S BIGGEST MUTUAL FUND COMPANY HAS 250 BILLION INCLUDING ITS BROKERAGE ACCOUNTS MORE SIGNIFICANTLY THE CONTINUED FLOOD OF CASH INTO MERRILL REFLECTS SMALL INVESTORS' NEWFOUND AFFECTION FOR STOCKS AND BONDS WALL STREET IS BESIEGED BY A WHOLE NEW GROUP OF INDIVIDUALS WHO ARE DISENCHANTED WITH THE PUNY RATES THEY ARE GETTING ON BANK CERTIFICATES OF DEPOSIT AND MONEY MARKET FUNDS THESE INVESTORS HAVE BEEN FLOCKING TO WALL STREET AND THE STOCK AND BOND MARKETS IN HOPES OF GETTING HIGHER RETURNS THIS SHIFT TOWARD WALL STREET IS GOING TO CONTINUE AS MORE LOWYIELDING CDS MATURE IN COMING YEARS PREDICTS LESLIE QUICK III PRESIDENT OF DISCOUNT BROKER QUICK & REILLY GROUP INC I DON'T SEE IT ABATING AT ALL MR QUICK SAYS THE CHALLENGE FOR BROKERAGE FIRMS ABSORBING ALL THE FRESH CASH IS PUTTING THE INVESTORS INTO VIABLE INVESTMENTS MUTUAL FUNDS RUN BY BROKERAGE FIRMS HAVEN'T ALWAYS PERFORMED WELL WILL THINGS BE BETTER NOW FROM WHERE I STAND I WOULD HOPE SO FOR THE INDUSTRY'S SAKE OR ELSE WE'LL PUT OFF A NEW GENERATION OF INVESTORS WHO HAVE LOOKED TO THE MARKET AS A VIABLE ALTERNATIVE TO CDS AND SAVING ACCOUNTS HE SAID OTHER BIG BROKERAGE FIRMS HAVE SEEN THEIR CUSTOMER ASSETS BALLOON BUT THE ABSOLUTE NUMBERS HAVE BEEN GREATEST AT MERRILL WHOSE CUSTOMER ASSETS HAVE TRIPLED SINCE 1984 WHERE IS THE FRESH CASH GOING AT MERRILL SLIGHTLY MORE THAN HALF THE MONEY IS GOING INTO STOCKS MR STEFFENS SAYS MUNICIPAL BOND SALES ARE ALSO SOARING MERRILL WON'T DISCLOSE HOW MANY TAXFREE BONDS IT IS SELLING BUT MR STEFFENS SAYS THE FIRM'S REVENUE FROM THAT BUSINESS IS UP 85 SO FAR THIS YEAR COMPARED WITH THE SAME PERIOD IN 1992 OF MERRILL'S CURRENT CUSTOMER ASSETS UNDER CONTROL 334 IS INVESTED IN STOCKS 459 IS IN BONDS DUE IN MORE THAN A YEAR WHICH EXCLUDES MONEYMARKET FUNDS AND 186 IS IN CASH THAT IS MONEYMARKET FUNDS AND CDS THE REST IS IN INSURANCE PRODUCTS AND OTHER INVESTMENTS INVESTORS HAVEN'T SUDDENLY BECOME HIGHRISK SPECULATORS THE NEW CASH HAS BEEN INVESTED HEAVILY IN CONSERVATIVE STOCKS AND MUTUAL FUNDS MR STEFFENS SAYS MANY INVESTORS HAVE BEEN FOCUSING ON UTILITY STOCKS FOR EXAMPLE HE SAYS RATHER THAN INITIAL PUBLIC OFFERINGS OR THE OVERTHECOUNTER MARKET OR SOME OF THE HIGHFLIERS IN THE MARKET 9303160112 930316 LETTERS TO THE EDITOR GEN TAYLOR GRACE UNDER POLITICAL FIRE YOUR FEB 16 EDITORIAL CLINTON AND THE CHIEFS QUOTES A MILITARY WRITER SAID TO BE A FRIEND OF GENERAL POWELL AS SAYING THAT MOST YOUNG US ARMY OFFICERS DID NOT BLAME THE DEFEAT IN VIETNAM SO MUCH ON THEIR GENERALS IN THE FIELD AS ON THOSE IN WASHINGTON ESPECIALLY GEN MAXWELL TAYLOR GEN TAYLOR HAD HIS SHARE TO ANSWER FOR WITH RESPECT TO VIETNAM AS HE HIMSELF ACKNOWLEDGED AS AMBASSADOR TO SAIGON IN 196465 PARTICULARLY HE SHOULD HAVE RECOGNIZED THAT THE SOUTH VIETNAMESE GOVERNMENT WAS NOT ONE FOR WHICH ANY AMERICAN SHOULD HAVE TO RISK HIS LIFE BUT IN CONTRAST TO OUR BABYBOOMER MILITARY EXPERTS TODAY GEN TAYLOR NEVER LOOKED FOR SCAPEGOATS HE MIGHT HAVE MENTIONED THOSE SAME YOUNG ARMY OFFICERS WHOSE MINDLESS OPTIMISM AND INFLATED BODY COUNTS DID SO MUCH TO ADD TO THE CONFUSION IN WASHINGTON HE DID NOT THOSE WHO WOULD LIKE TO MAKE GEN TAYLOR A SCAPEGOAT FOR VIETNAM MIGHT BEAR IN MIND THAT WHEN HE RESIGNED AS CHAIRMAN OF THE JOINT CHIEFS OF STAFF IN 1964 THERE WERE ONLY 23000 AMERICANS IN VIETNAM WHILE HE WAS A HAWK WITH REGARD TO BOMBING NORTH VIETNAM HE NEVER FAVORED THE MASSIVE COMMITMENT OF US GROUND FORCES TO BE SURE GEN TAYLOR WAS AN APOSTLE OF GRADUALISM IN THE USE OF US POWER BUT THE GRADUALISM THAT HE ESPOUSED A STEADY INEXORABLE APPLICATION OF US AIR POWER WAS SO DILUTED IN PRACTICE THAT WE WILL NEVER KNOW HOW EFFECTIVE IT WOULD HAVE BEEN IF PROPERLY CARRIED OUT MR TAYLOR IS GEN MAXWELL TAYLOR'S SON HE IS THE AUTHOR OF SEVERAL BOOKS IN HISTORY AND BIOGRAPHY 9303160111 930316 LETTERS TO THE EDITOR BIRDS OF A FEATHER ON THE DOLE TOGETHER IN BIRD FEEDING IN CENTRAL PARK ACT OF FAITH OR FOLLY LEISURE & ARTS MARCH 4 MARIE WINN VENTURES FROM BIRD FEEDING TO WELFARE AND GETS HER ARGUMENTS A BIT CHEWED UP IN THE PROCESS SHE ARGUES THAT THE NOTION THAT BIRDS LOSE THEIR NATURAL ABILITIES TO SURVIVE THANKS TO HUMAN HANDOUTS IS SIMILAR TO THE IDEA THAT WELFARE RECIPIENTS LOSE THEIR WILL TO WORK ONCE THEY ARE ON THE DOLE THIS HAS BEEN FIRMLY DISPROVED BY SCIENTISTS AT LEAST THE BIRD PART OF THE ANALOGY MS WINN THEN CITES A STUDY IN WHICH BIRDS THAT HAD BEEN FED BY HUMANS SHOW THEMSELVES EQUAL TO A CONTROL GROUP OF BIRDS DURING A HARSH WINTER IN WHICH THE FORMERFEEDERS PROVED TO HAVE THE SAME SURVIVAL RATE AS THE FEEDERVIRGINS THE TROUBLE IS NOT IN THE BIRD STUDY BUT IN MS WINN'S INTERPRETATION THE BIRD EXPERIMENT DEALT WITH THE ISSUE OF WHETHER BIRDS LOSE THEIR WILL TO WORK ONCE THE DOLE IS REMOVED NOT WHILE BIRDS ARE ON THE DOLE WHAT THE STUDY DOES SUGGEST WERE WE TO ACCEPT THE NOTION THAT BIRD BEHAVIOR IS APPLICABLE TO HUMAN BEHAVIOR IS THAT CURRENT WELFARE RECIPIENTS ONCE REMOVED FROM THE DOLE WOULD HAVE THE SAME ECONOMIC SURVIVAL RATE AS NONWELFARE RECIPIENTS NOW THAT SHOULD RUFFLE SOME FEATHERS 9303160110 930316 LETTERS TO THE EDITOR ROBIN HOLCOMB'S SONGS QUALITY COMES FIRST ROXANE ORGILL'S FEB 19 LEISURE & ARTS ARTICLE ABOUT ROBIN HOLCOMB A POET WHO TURNED PEN TO SONG WAS A VERY FAIR ASSESSMENT OF THE TALENTS OF THIS EXTRAORDINARY IF TOOLITTLEKNOWN ARTIST I HOPE THE ARTICLE WILL ALERT OTHERS TO MS HOLCOMB'S SYNTHESIS OF POETRY FOLK JAZZ AND NEW MUSIC I WOULD LIKE TO CORRECT HOWEVER THE IMPRESSION THAT I WAS UNHAPPY WITH THE SALES OF HER FIRST ELEKTRA MUSICIAN RELEASE AN AUDIENCE OF 25000 IS INDEED BARELY ACCEPTABLE FOR MUSIC THIS IMPORTANT BUT THAT'S NOT THE ARTIST'S FAULT OUR CONTINUING DEDICATION TO MS HOLCOMB IS BETTER EXPRESSED BY THE FACT THAT WE HAVE JUST RENEWED OUR AGREEMENT WITH HER FOR A THIRD ALBUM AS I TOLD MS ORGILL WE ARE NOT MEASURING MS HOLCOMB'S SUCCESS IN THE QUANTITY OF RECORDS SOLD BUT IN THE QUALITY OF RECORDS MADE AND ON THOSE TERMS WE COULDN'T BE PROUDER 9303160109 930316 VISA'S INTERLINK NETWORK UNIT SAN FRANCISCO INTERLINK NETWORK THE DATA PROCESSING UNIT OF VISA USA SAID THAT IT REACHED AN AGREEMENT WITH CREDIT UNION CARD SERVICES INC AN AFFILIATE OF THE CREDIT UNION NATIONAL ASSOCIATION THAT MAKES IT POSSIBLE FOR ANY OF 13400 CREDIT UNIONS NATIONWIDE TO JOIN THE NETWORK BY JOINING INTERLINK CREDIT UNION MEMBERS WILL BE ABLE TO USE THEIR DEBIT CARDS AT INTERLINK LOCATIONS NATIONWIDE CREDIT UNION NATIONAL REPRESENTS ABOUT 90 OF THE CREDIT UNIONS NATIONWIDE 9303160108 930316 HEALTH COST CONTROLS IMPEL PSYCHIATRIC HOSPITALS TO ESTABLISH MORE OUTPATIENT PROGRAMS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN DAVID A COCAINE ADDICT ARRIVED AT THE FRONT DESK OF SHEPPARD AND ENOCH PRATT HOSPITAL IN BALTIMORE LAST MONTH HE HAD COME TO STAY I HAD MY SUITCASE IN THE CAR I CAME IN HERE AND SAID I'M YOURS' RECALLS THE 43YEAROLD FORMER ACCOUNTANT WHOSE 200ADAY DRUG HABIT HAD COST HIM HIS CAREER BUT TO HIS SHOCK HOSPITAL OFFICIALS DIDN'T CHECK HIM IN INSTEAD THEY REFERRED HIM TO THEIR OWN OUTPATIENT CENTER WHERE HE WOULD BE TREATED DURING BUSINESS HOURS IT SURPRISED ME WHEN THEY SAID THEY WERE PUTTING ME IN OUTPATIENT BUT THEY'RE THE EXPERTS HE SAYS HISTORICALLY A PATIENT SUFFERING FROM DRUG ABUSE DEPRESSION OR SOME OTHER MENTAL ILLNESS WOULD GET WEEKS SOMETIMES MONTHS OF HOSPITAL TREATMENT BUT PSYCHIATRIC HOSPITALS BATTERED BY MANAGEDCARE FIRMS AND INSURANCE COMPANIES AND HAVING ACCESS TO BETTER PSYCHIATRIC DRUGS SUCH AS LITHIUM AND CHLORAZIL ARE DRAMATICALLY CHANGING THEIR PRACTICES AT SHEPPARD PRATT IN BALTIMORE MANY PATIENTS ARE TREATED MORE LIKE STUDENTS IN TRAINING ATTENDING FULL DAYS OF CLASSES THAN AS PATIENTS AT FRIENDS HOSPITAL IN PHILADELPHIA MANY DEPRESSED PATIENTS ONCE ADMITTED FOR WEEKS ARE NOW REFERRED TO EXPANDED OUTPATIENT CENTERS AND AT HCAHOSPITAL CORP OF AMERICA'S 26 PSYCHIATRIC HOSPITALS MANY PATIENTS ARE DRIVING TO THE HOSPITAL IN THE MORNINGS FOR TREATMENT AND THEN DRIVING BACK HOME AT NIGHT IN THE SCRAMBLE FOR SURVIVAL PSYCHIATRIC HOSPITALS ARE SETTING UP MORE OF THEIR OWN OUTPATIENT PROGRAMS WHERE PATIENTS CAN BE TREATED ANYWHERE FROM AN HOUR A WEEK TO EIGHT HOURS A DAY THEY ARE DEVISING PARTIAL HOSPITALIZATION ARRANGEMENTS WHERE PATIENTS DO EVERYTHING BUT SPEND THE NIGHT AND THEY ARE BEGINNING THEIR OWN HALFWAY HOUSES WHERE PATIENTS CAN LIVE TEMPORARILY BUT NOT IN A HOSPITAL SETTING IF THEY'RE NOT SUICIDAL THEY'RE NOT ADMITTED SAYS STEVE SHARFSTEIN CHIEF EXECUTIVE OFFICER OF SHEPPARD PRATT AS RECENTLY AS TWO YEARS AGO THE MAJOR FINANCIAL MEASURE OF A PSYCHIATRIC HOSPITAL'S SUCCESS WAS HOW MANY BEDS IT COULD FILL BUT AS INSURERS AND MANAGEDCARE COMPANIES HAVE REDUCED THEIR REIMBURSEMENTS FOR PSYCHIATRIC CARE THAT STRATEGY NO LONGER WORKS THE AVERAGE LENGTH OF A PSYCHIATRICHOSPITAL STAY FOR ACUTE CARE HAS CONSEQUENTLY FALLEN TO 196 DAYS IN 1991 FROM 257 DAYS IN 1987 ACCORDING TO HCIA A HEALTHCARE CONSULTING FIRM AND PROFIT MARGINS ON ACUTE CARE AT THE TYPICAL PSYCHIATRIC HOSPITAL WHICH AVERAGED 73 IN 1987 TURNED INTO LOSSES IN 1991 THUS PSYCHIATRIC HOSPITALS HAVE BEEN SEARCHING FOR NEW SOURCES OF INCOME AND WHAT THEY HAVE COME UP WITH IS A CONTINUUM OF CARE PROVIDING A WIDER VARIETY OF TREATMENTS INCLUDING MANY THAT ARE MUCH LESS COSTLY AND INTENSIVE THAN HOSPITAL CARE THEY WON'T MAKE AS MUCH MONEY SAYS JD KLEINKE AN ANALYST WITH HCIA BUT IT BEATS HAVING NO MONEY TWO YEARS AGO BARELY 1 OF THE PATIENT REVENUE AT HCAHOSPITAL CORP OF AMERICA'S PSYCHIATRIC HOSPITALS CAME FROM OUTPATIENT CARE ACCORDING TO GEORGE BONE PRESIDENT OF THE HOSPITAL CHAIN'S PSYCHIATRIC HOSPITALS TODAY THAT PERCENTAGE IS UP TO 5 AND GROWING RAPIDLY MR BONE EXPECTS THAT IN THE NEXT THREE TO FIVE YEARS 30 OF HCA'S PSYCHIATRICPATIENT REVENUE WILL COME FROM OUTPATIENT CARE HE PREDICTS THE ENTIRE INDUSTRY WILL EXPERIENCE A SIMILAR SHIFT UNDER SHEPPARD PRATT'S PARTIALHOSPITALIZATION PLAN RECOVERING ALCOHOLICS STILL GET INTENSIVE TREATMENT THAT BEGINS AT 830 AM IN THE HOSPITAL WITH AN EVALUATION AND MEDICATIONS THAT IS FOLLOWED BY THERAPY SESSIONS CALISTHENICS NUTRITION SESSIONS RELAXATION TRAINING AND FINALLY ANOTHER EVALUATION BY A NURSE OR DOCTOR ALL ENDING AT 4 PM OR 5 PM WHEN THEY RETURN HOME FRIENDS HOSPITAL IN PHILADELPHIA LAST YEAR BEGAN A SIMILAR PROGRAM FOR ADOLESCENTS STUDENTS ATTEND SCHOOL FOR HALF THE DAY AND ARE BUSED TO THE HOSPITAL FOR THE OTHER HALF THE STUDENTS GO HOME AT NIGHT HCAHOSPITAL CORP OF AMERICA OFFERS NIGHT TREATMENT PROGRAMS AT SOME OF ITS PSYCHIATRIC HOSPITALS WHICH RUN FROM 5 PM TO 11 PM THE NEW TREATMENTS ARE GENERALLY MUCH CHEAPER A FULL DAY'S PARTIALHOSPITALIZATION PROGRAM IS ABOUT HALF THE COST OF INPATIENT TREATMENT WHICH RUNS CLOSE TO 700 A DAY FOR A TYPICAL PSYCHIATRIC HOSPITAL ACCORDING TO HCIA THESE PROGRAMS CAN ALSO BE LESS DISRUPTIVE TO PATIENTS NIGHT PROGRAMS ALLOW PATIENTS TO CONTINUE TO WORK DURING THE DAY PROPONENTS SAY JAMES MCGEE CHIEF PSYCHOLOGIST AND DIRECTOR OF ADDICTION SERVICES WITH SHEPPARD PRATT SAYS THERE IS LESS OF A STIGMA ATTACHED TO OUTPATIENT TREATMENT FOR MENTALHEALTH ILLNESSES IN THE OLD DAYS WHEN TOLD YOU'VE GOT TO GO TO THE COUNTY HOME FOR THE BEWILDERED FOR 28 DAYS' SOME FOLKS JUST FLAT OUT SAID NO DR MCGEE SAYS NOW WE'RE OFFERING A MORE PALATABLE OPTION BUT HE AND OTHERS SOMETIMES WORRY THAT PATIENTS COULD BE GETTING SHORT SHRIFT WITH THE NEW PROGRAMS WHILE SOME PATIENTS CAN BE MEDICALLY STABILIZED WITHIN A COUPLE OF DAYS THEY OFTEN HAVE NO SAFE PLACE TO GO TO RECOVER FROM THE ENVIRONMENTAL PRESSURES THAT MAY HAVE SENT THEM TO THE HOSPITAL TO BEGIN WITH THE DOWN SIDE HERE IS THERE IS A SMALL GROUP OF PATIENTS WHO DO BENEFIT FROM LONGTERM INHOSPITAL TREATMENT SAYS DR MCGEE YOU SEND THEM BACK TO THAT HOME ENVIRONMENT AND THEY END UP BEING IN A REVOLVING DOOR INDEED SINCE IT SHIFTED TOWARD MORE PARTIAL HOSPITALIZATION AND OUTPATIENT TREATMENT FOR MENTALHEALTH PATIENTS TWO YEARS AGO CHARTER MEDICAL CORP OF MACON GA SAW ITS RELAPSE RATE INCREASE 10 ACCORDING TO PRESIDENT AND CHIEF EXECUTIVE OFFICER MAC CRAWFORD PEOPLE ARE NOT LEAVING THE SYSTEM AS WELLOFF AS THEY ONCE WERE MR CRAWFORD SAYS IT'S NOT LIKE THE DISEASE CHANGES SAYS SUZANNE HOVDEY VICE PRESIDENT OF COMMUNITY PSYCHIATRIC CENTERS WHICH FOR THE LAST YEAR AND A HALF HAS BEEN BROADENING ITS OFFERINGS TO INCLUDE MORE OUTPATIENT SERVICES IF THEY'RE A DANGER TO THEMSELVES AND OTHERS THEY'RE NOT GOING TO STOP BEING A DANGER WHEN THEY GO HOME AT 6 AT NIGHT DAVID THE ACCOUNTANT WHO TRIED TO CHECK INTO SHEPPARD PRATT HAD TRIED TO CURE HIS COCAINE ADDICTION THROUGH AN OUTPATIENT PROGRAM THERE ONCE BEFORE THAT IS WHY HE HAD BEEN SO SURE THE HOSPITAL WOULD BE WILLING TO TAKE HIM IN THE SECOND TIME AROUND THE INTENSIVE TWOWEEK PART OF HIS TREATMENT IS NOW OVER AND HE RECENTLY SWITCHED TO A NIGHT PROGRAM SO THAT HE CAN FIND A JOB ALTHOUGH HE IS HOPEFUL HE WORRIES ABOUT THE EFFECTIVENESS OF OUTPATIENT TREATMENT THE LAST TIME I DID THIS HE SAYS LOOK WHAT HAPPENED 9303160107 930316 CORRECTION THE FIGURES IN A TABLE ACCOMPANYING WILLIAM J BENNETT'S ARTICLE IN YESTERDAY'S PAPER QUANTIFYING AMERICA'S DECLINE WERE MISLABELED THEY REFERRED TO THE NUMBER OF SUICIDES PER 100000 TEENS 9303160106 930316 INTERNATIONAL FIAT SLATES LAYOFFS TURIN ITALY ITALIAN AUTO CONCERN FIAT SPA WILL LAY OFF 42000 WORKERS FOR ONE WEEK AND 14000 FOR ANOTHER WEEK IN APRIL TO CUT ITS PRODUCTION BY 26000 CARS THE GROUP WHICH EMPLOYS 115000 WORKERS IN ITS AUTO DIVISION SAID THE TEMPORARY LAYOFFS WERE IN RESPONSE TO THE SLUGGISH DEMAND IN THE EUROPEAN CAR MARKET FIAT WHICH IS CONTROLLED BY THE AGNELLI FAMILY HAS CLOSED MANUFACTURING FACILITIES BETWEEN ONE AND TWO WEEKS SINCE FEBRUARY 1991 TO REDUCE PRODUCTION AND EXCESS INVENTORIES 9303160105 930316 WORLD MARKETS TOKYO SHARES GAIN FOR SEVENTH STRAIGHT SESSION LONDON STOCKS RISE AS INVESTORS AWAIT BUDGET A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS STRETCHED THEIR WINNING STREAK INTO A SEVENTH STRAIGHT SESSION THE LONGEST CONSECUTIVE RISE IN MORE THAN TWO YEARS LONDON STOCK PRICES ROSE IN QUIET TRADING AS INVESTORS REMAINED ON THE SIDELINES AHEAD OF THE ANNUAL UK BUDGET ANNOUNCEMENT DUE TODAY FRANKFURT SHARES DROPPED IN LACKLUSTER TRADING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 13273 POINTS FRIDAY ROSE 4866 POINTS TO 1808618 ON TUESDAY THE NIKKEI INDEX FELL 8177 POINTS TO CLOSE THE MORNING SESSION AT 1800441 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN SHARPLY FROM 7711 MILLION SHARES FRIDAY WHEN POSITIONING TIED TO THE EXPIRATION OF INDEX FUTURES AND OPTIONS BLOATED VOLUME ADVANCERS SWAMPED LOSERS 680 TO 347 THE TOKYO STOCK PRICE INDEX OF FIRSTSECTION ISSUES WHICH ROSE 660 POINTS FRIDAY GAINED AN ADDITIONAL 266 POINTS TO 135360 DEALERS SAID THE MOOD WAS BRIGHT FOLLOWING A RALLY LAST WEEK THAT ADDED MORE THAN 1200 POINTS OR 73 TO THE INDEX BUYING FOCUSED ON THEME ISSUES SUCH AS THOSE TIED TO THE GOVERNMENT'S SPENDING ON INFRASTRUCTURE EARLY PROFITTAKING PUSHED THE NIKKEI BELOW 18000 BUT IT QUICKLY RECOVERED LARGELY ON THE BACK OF BUYING BY PUBLIC PENSION FUNDS THE MARKET ALSO SAW STRONG BUYING BY INDIVIDUAL AND FOREIGN INVESTORS IN FRANKFURT THE DAX 30STOCK INDEX FELL 457 POINTS TO 170257 INVESTORS APPEARED TO BE HOLDING BACK AS THEY STUDIED AN AGREEMENT BETWEEN FEDERAL AND STATE GOVERNMENTS ON SHARING THE COST OF REBUILDING EASTERN GERMANY SOME ANALYSTS SAY THE DEAL IMPROVES THE CHANCES THE GERMAN CENTRAL BANK WILL CUT KEY INTEREST RATES WHEN ITS REGULAR POLICYMAKING COUNCIL MEETS THURSDAY THE BUNDESBANK HAS REPEATEDLY SAID A FISCAL CONSOLIDATION PROGRAM IS NECESSARY FOR FURTHER RATE CUTS IN LONDON THE FINANCIAL TIMESSTOCK EXHANGE 100SHARE INDEX ROSE 65 POINTS TO 29224 THE FT 30STOCK GAINED 18 POINTS TO 226980 PRICES WERE BOLSTERED BY SPECULATION THAT GERMANY WILL CUT INTEREST RATES SUCH A MOVE WOULD MAKE IT EASIER FOR THE BRITISH GOVERNMENT TO SANCTION A FURTHER CUT IN DOMESTIC INTEREST RATES IN THE NEAR FUTURE POSSIBLY BY HALF A PERCENTAGE POINT TO 5 1/2 OTHER BULLISH FACTORS INCLUDED SPECULATION THAT HONG KONG SHARE PRICES ARE SET TO REBOUND AFTER DROPPING SHARPLY YESTERDAY ALSO THE SELLING OF UK SHARES LATE LAST WEEK HAD LEFT MANY ISSUES OVERSOLD PROMPTING SOME BARGAINHUNTING IN SELECTED ISSUES DATA SHOWING THAT MANUFACTURING OUTPUT ROSE BY 08 IN JANUARY FROM DECEMBER AND BY 17 FROM A YEAR EARLIER WERE WELCOME BUT FAILED TO ENCOURAGE INVESTORS OFF THE SIDELINES THE HOPES FOR LOWER GERMAN RATES SENT PARIS STOCKS HIGHER AMSTERDAM SHARES CLOSED 06 HIGHER AS PRICES REBOUNDED FROM WORRIES OVER POLITICAL CONFLICTS IN RUSSIA ZURICH STOCKS ALSO RECOVERED FROM FRIDAY'S SELLOFF SHARES IN MILAN WERE LOWER ON TECHNICAL FACTORS SWEDISH SHARE PRICES WERE DOWN AS DOMESTIC AND INTERNATIONAL POLITICAL UNCERTAINTY CONTINUED TO TROUBLE THE MARKET IN HONG KONG STOCKS PLUNGED MORE THAN 5 IN HEAVY TRADING AS INVESTORS DIGESTED CLEAR SIGNS THAT SINOBRITISH TALKS ARE UNLIKELY IN THE NEAR FUTURE HONG KONG GOVERNOR CHRIS PATTEN ON FRIDAY PUBLISHED HIS BLUEPRINT FOR DEMOCRATIC REFORM IN THE COLONY UNLEASHING A BARRAGE OF CRITICISM FROM CHINA SYDNEY SHARE PRICES PLUMMETED 21 IN REACTION TO THE SURPRISE REELECTION OF THE LABOR PARTY GOVERNMENT IN WEEKEND ELECTIONS AND WEAKER OVERSEAS STOCK MARKETS INVESTORS HAD EXPECTED A WIN BY THE OPPOSITION COALITION WHICH HAD PROMISED A PACKAGE OF ECONOMIC INCENTIVES SINGAPORE STOCKS FELL AS SENTIMENT TURNED SOUR ON UNINSPIRING CORPORATE EARNINGS AND FALLS IN OVERSEAS MARKETS PRICES IN SEOUL ROSE SHARPLY IN TAIWAN SHARES ROSE IN HECTIC TRADING AS FINANCE ISSUES STARTED TO REBOUND NEW ZEALAND SHARES ENDED SHARPLY LOWER IN RESPONSE TO THE AUSTRALIAN ELECTION RESULTS BOMBAY'S STOCK EXCHANGE CAME BACK TO LIFE AFTER BOMB BLASTS RIPPED THROUGH THE BOURSE'S BASEMENT FRIDAY THE EXCHANGE'S INDEX JUMPED 6468 POINTS IMMEDIATELY AFTER TRADING BEGAN REFLECTING STRONG INTEREST BY FOREIGN AND DOMESTIC INVESTORS IN THE EMERGING INDIAN STOCK MARKET AMONG CORPORATE DEVELOPMENTS IN FRANKFURT HOECHST DROPPED 48 MARKS OR 19 TO 249 MARKS 14965 THE CHEMICAL COMPANY REPORTED A STRONG EXPLOSION AT ITS MAIN PLANT NEAR FRANKFURT THE EXPLOSION WHICH KILLED ONE WORKER AND RELEASED A CLOUD OF NONTOXIC GAS IS THE THIRD MAJOR ACCIDENT AT THE PLANT AND THE FOURTH ACCIDENT FOR HOECHST IN GERMANY AS A WHOLE IN THE LAST MONTH THE SERIES OF MISHAPS HAS PROMPTED GERMAN AUTHORITIES TO CONTEMPLATE HARSH CONTROLS AND GUIDELINES FOR THE CHEMICAL INDUSTRY AS A WHOLE IN PARIS DASSAULT AVIATION ROSE 26 TO 395 FRANCS FROM 385 FRANCS COMPANY OFFICIALS SAID THE STATECONTROLLED JET BUILDER WILL REMAIN PROFITABLE IN 1993 DESPITE A STEEP DECLINE IN REVENUE DUE TO A SLUMP IN ORDERS THEY SAID RESTRUCTURING EFFORTS UNDERTAKEN IN THE PAST FEW YEARS WILL CUSHION THE BLOW THE OFFICIALS SAID 1992 NET INCOME WAS SLIGHTLY LARGER THAN THE 1029 MILLION FRANCS 182 MILLION REPORTED FOR 1991 WHILE REVENUE WAS CLOSE TO THE 144 BILLION FRANCS REPORTED FOR 1991 IN MILAN ING C OLIVETTI ANNOUNCED PLANS FOR A CAPITAL INCREASE OF 903 BILLION LIRE 5612 MILLION TO ACCELERATE GROWTH THE COMPUTER MAKER'S SHARES ALONG WITH THOSE OF ITS PARENT COMPANY CIE INDUSTRIALE RIUNITE AND ANOTHER CARLO DE BENEDETTI HOLDING COMPANY COFIDE WERE SUSPENDED FROM TRADING ON THE MILAN STOCK EXCHANGE AT THE SAME TIME OLIVETTI SAID ITS CONSOLIDATED LOSS FOR 1992 WIDENED TO 650 BILLION LIRE FROM 4598 BILLION LIRE A YEAR EARLIER 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 9303160104 930316 FORECASTERS FINALLY GET SOME RESPECT FOR THEIR PREDICTION NATIONAL WEATHER SERVICE BASKS IN PRAISE FOR THE MOMENT AFTER GETTING ONE RIGHT BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER THE EAST COAST WAS BURIED UNDER SNOW IT WAS THE NATIONAL WEATHER SERVICE THAT WAS BEING HAILED THIS IS ONE TIME THE WEATHER SERVICE GOT IT RIGHT THE MEN AND THE WOMEN OF THE WEATHER SERVICE ARE HAVING THEIR DAY IN THE SUN OR ER THEIR DAY IN THE SNOW SAYS THE AGENCY'S DIRECTOR ELBERT FRIDAY WHO SPENT THE WEEKEND SNOWED IN AT HIS HOME IN LORTON VA SINCE THE MONDAY BEFORE THE STORM THE WEATHER SERVICE'S CRAY RESEARCH INC SUPERCOMPUTER IN SUITLAND MD WAS SPITTING OUT RESULTS FROM A SOPHISTICATED COMPUTER MODEL PREDICTING THAT A HUGE STORM WAS BREWING WORD WAS FLYING THROUGH THE CORRIDORS OF WEATHER SERVICE OFFICES FROM SILVER SPRING MD TO KANSAS CITY MO AS OTHER METEOROLOGISTS CAUGHT WIND OF THE COMPUTER PREDICTIONS THE FIVEDAY FORECAST ON THAT MONDAY SHOWED A DEEP LOWPRESSURE SYSTEM SOMEWHERE IN THE CAROLINAS SAYS FREDERICK OSTBY DIRECTOR OF THE NATIONAL SEVERE STORMS FORECAST CENTER IN KANSAS CITY THE SAME SIGNALS EMERGED TUESDAY AND WEDNESDAY WHEN WEATHER SERVICE METEOROLOGISTS STARTED ISSUING DIRE WARNINGS AND INDEED THE STORM STRUCK FLIPPING TRAILER HOMES CLOSING INTERSTATES AND FORCING PEOPLE TO HIBERNATE FOR THE WEEKEND WEATHER SERVICE FORECASTERS HAVE GROWN USED TO SKEPTICISM EVEN FROM LOVED ONES METEOROLOGIST STEPHEN LORD'S WIFE DIDN'T BELIEVE HIM LAST TUESDAY WHEN HE CALLED HOME TO WARN THE BIG ONE IS COMING SHE TAKES MY PROGNOSTICATIONS WITH A GRAIN OF SALT ADMITS MR LORD A HURRICANE SPECIALIST BY WEDNESDAY HE PERSUADED HIS WIFE TO HOARD SUPPLIES FOR A WEEKEND AT HOME BY FRIDAY WHEN THE SUPERMARKETS WERE PACKED WITH SHOPPERS SHE WAS GLAD TO HAVE BEATEN THE RUSH MR LORD SAYS METEOROLOGISTS WHOSE JOB IS USUALLY THE RODNEY DANGERFIELD OF OCCUPATIONS ARE BASKING IN THE WARMTH MR OSTBY A 21YEAR WEATHER SERVICE VETERAN WHOSE OPERATION ISSUED WARNINGS SEVERAL HOURS BEFORE TORNADOES HIT FLORIDA EARLY SATURDAY MORNING SAYS WE'VE HAD ENOUGH EGGS THROWN AT US WEATHER SERVICE RANKINFILE GOT KUDOS FROM HEADQUARTERS HERE YESTERDAY MR FRIDAY ISSUED AN INTERNAL ELECTRONIC MAIL MESSAGE THAT READ IN PART YOU WERE GREAT THE SERVICE WILL PROBABLY USE ITS ACCURATE FORECAST AS AMMUNITION IN ITS BATTLE TO WIN MORE FUNDING FROM CONGRESS FOR MODERNIZATION PLANS BUT SOME ARE TAKING THE PRAISE AS LIGHTLY AS MANY TAKE WEATHER SERVICE FORECASTS SAYS MR LORD YOU LEARN IN THIS BUSINESS TO BE HUMBLE WE CAN'T GET ANY SPECIAL PLEASURE OUT OF BEING RIGHT BECAUSE WE'D HAVE TO TAKE A LOT OF SUFFERING WHEN WE'RE WRONG 9303160103 930316 CLINTON NARROWS HUNT FOR TOP ANTITRUST POST AT JUSTICE DEPARTMENT WASHINGTON PRESIDENT CLINTON IS CONSIDERING APPOINTING WASHINGTON LAWYER ANNE BINGAMAN TO A TOP JUSTICE DEPARTMENT POSITION POSSIBLY THAT OF ASSISTANT ATTORNEY GENERAL FOR ANTITRUST GOVERNMENT OFFICIALS SAID GEORGETOWN UNIVERSITY LAW PROFESSOR ROBERT PITOFSKY FORMER CHAIRMAN OF THE FEDERAL TRADE COMMISSION ALSO IS BEING CONSIDERED FOR THE ANTITRUST POST MR PITOFSKY WAS HEAD OF THE ANTITRUST CLUSTER FOR THE CLINTON TRANSITION TEAM MS BINGAMAN IS A MEMBER OF THE LAW FIRM OF POWELL GOLDSTEIN FRAZER & MURPHY WHERE SHE SPECIALIZES IN ANTITRUST AND COMMERCIAL LAW SHE ATTENDED THE LONDON SCHOOL OF ECONOMICS AND DID UNDERGRADUATE WORK AT STANFORD UNIVERSITY WHERE SHE EARNED A LAW DEGREE IN 1968 SHE IS ALSO THE WIFE OF SEN JEFF BINGAMAN OF NEW MEXICO IN A 1984 SPEECH MS BINGAMAN ASSERTED THAT TECHNOLOGY IS MOVING SO QUICKLY THAT THE LEGAL SYSTEM CANNOT KEEP UP SHE CLAIMED THAT ADVANCES IN HEALTH CARE NUCLEAR WASTE DISPOSAL AND SEMICONDUCTOR CHIPS MOVED SO QUICKLY THAT 1976 CHANGES IN THE NATION'S COPYRIGHT LAWS WERE OUTDATED IN THREE YEARS AND SHE CALLED ON CONGRESS AND STATE LEGISLATURES TO DEAL WITH THE PROBLEM COMPREHENSIVELY 9303160102 930316 LEISURE & ARTS ON SPORTS CALL THEM THE YOUNG AND THE SWIFT BY FREDERICK C KLEIN KISSIMMEE FLA THE HOUSTON ASTROS BEGAN LAST SEASON SEEMINGLY FATED TO FINISH LAST IN THE NATIONAL LEAGUE WEST AND DEMOCRATS AS WELL THE LASTPLACE PART STEMMED FROM THEIR PREVIOUSYEAR'S STANDING IN THAT UNHAPPY POSITION THE POLITICAL PART APPEARED TO BE AN INEVITABLE RESULT OF THEIR BEING EVICTED FROM THEIR ASTRODOME HOME BETWEEN JULY 27 AND AUG 23 SO THEIR OWNER COULD RENT OUT THE PLACE FOR THE REPUBLICAN NATIONAL CONVENTION IT WAS ASSUMED THAT THE 28DAY 26GAME ROAD TRIP THE MOVE NECESSITATED WOULD BE ENOUGH TO SINK A STRONG TEAM MUCH LESS A YOUNG AND SHAKY ONE BUT A FUNNY THING HAPPENED DURING THE ASTRO'S EXILE THEY STARTED PLAYING GOOD BASEBALL AFTER LOSING 10 OF THEIR FIRST 14 GAMES ON THE JOURNEY THEY WON EIGHT OF THEIR LAST 12 AND THEY WON 25 OF 38 THEREAFTER TO FINISH AT AN EVEN 500 8181 AND IN FOURTH PLACE IN WHAT WAS PROBABLY THE MAJOR LEAGUES' TOUGHEST DIVISION WHAT DID IT ECHOES ART HOWE THE CLUB'S BALDHEADED FITLOOKING MANAGER AT ITS WINDY CENTRAL FLORIDA SPRINGTRAINING BASE LAST WEEKEND I DON'T KNOW IF I DID I'D BOTTLE AND SELL IT BUT I GUESS SPENDING ALL THAT TIME TOGETHER BROUGHT THE GUYS CLOSER AND GAVE THEM MORE CONFIDENCE IN ONE ANOTHER STEVE FINLEY THE TEAM'S SWIFT CENTERFIELDER OFFERS AN ALTERNATE THEORY WHEN WE HIT THE HALFWAY MARK OF THAT TRIP AND DISCOVERED WE HADN'T DIED OR ANYTHING WE PERKED UP SAYS HE EVERYTHING SEEMED A LOT EASIER AFTER THAT THE ASTROSMILES HAVE GROWN WIDER SINCE OWING TO THE ACTIONS OF DRAYTON MCLANE JR WHO PURCHASED THE TEAM FROM JOHN MCMULLEN LAST SUMMER THE BUILDER OF A GIANT GROCERYDISTRIBUTION COMPANY MCLANE PROMISED AN ADMINISTRATION WITH GET UP AND GO AND PROVED IT DURING THE OFFSEASON BY GOING OUT AND GETTING DOUG DRABEK AND GREG SWINDELL A PAIR OF TEXAS NATIVES WHO WERE TWO OF THE BEST STARTING PITCHERS ON THE FREEAGENT MARKET THE PRICE FOR THEIR SIGNATURES ON FOURYEAR CONTRACTS TOTALED 365 MILLION DRABEK THE PITCHING ACE OF THREE PITTSBURGH PIRATES NL EAST TITLISTS GOT 195 MILLION OF THAT MCLANE FURTHER SHOWED HE MEANT BUSINESS BY SIGNING THE TEAM'S RESIDENT STARS FINLEY SECOND BASEMAN CRAIG BIGGIO AND THIRD BASEMAN KEN CAMINITI TO THREEYEAR CONTRACTS EACH WORTH MORE THAN 3 MILLION PER A LITTLE ARITHMETIC REVEALS THAT THE ABOVENAMED FIVE WILL BE PAID ABOUT 18 MILLION THIS SEASON THAT'S SOME 2 MILLION MORE THAN THE ASTROS' ENTIRE BIGLEAGUE PLAYER PAYROLL IN 1992 UNDER MCMULLEN THE GOP'S ERSTWHILE LANDLORD MR MCLANE HAS MADE A COMMITMENT TO WINNING OBSERVES HOWE HE ADDS WITHOUT HINT OF TREPIDATION NOW WE HAVE TO DO THE SAME AND I THINK WE WILL THE CREW HOWE WILL LEAD SO OPTIMISTICALLY IN SEARCH OF THE FIRST PENNANT IN THE FRANCHISE'S 32YEAR HISTORY IS YOUNG BY ANY STANDARD NO PROBABLESTARTER POSITION PLAYER HAS MARKED HIS 30TH BIRTHDAY AND SWIFT BY MOST HAVING RANKED FOURTH IN LEAGUE STOLEN BASES LAST SEASON WITH GOOD PERFORMANCES AT THE QUESTIONMARK POSITIONS OF SHORTSTOP AND CATCHER IT SHOULD BE SOLID DEFENSIVELY LAST YEAR'S TEAM LOPPED 47 ERRORS OFF THE TALLY OF THE YEAR BEFORE SET TO START AT FIRST BASE IS 24YEAROLD JEFF BAGWELL WHO HAS 33 HOME RUNS AND 178 RUNS BATTED IN OVER HIS TWO MAJOR LEAGUE SEASONS SO FAR SECOND BASEMAN BIGGIO 27 IS THE ONLY PLAYER EVER TO MAKE THE ALLSTAR TEAM AT HIS PRESENT POSITION AND OF ALL THINGS AT CATCHER AS A FIFTHYEAR STARTER THIRD BASEMAN CAMINITI 29 IS THE INFIELD'S GRAYBEARD HOWE IS HOPING THAT ANDUJAR CEDENO A 23YEAROLD NATIVE OF THE DOMINICAN REPUBLIC WILL MAKE IT AT SHORTSTOP BUT IF HE DOESN'T THE VETERAN JOSE URIBE A FREEAGENT SIGNEE FORMERLY OF THE SAN FRANCISCO GIANTS IS AVAILABLE FOUR YOUNG CATCHERS ARE IN CAMP OF WHOM EDDIE TAUBENSEE 24 GETS THE CURRENT NOD ON THE BASIS OF HIS THROWING ARM WITH 177 HITS 44 STOLEN BASES AND CONSIDERABLE TALENT AFIELD THE 28YEAROLD FINLEY WOULD LOOK GOOD IN ANYBODY'S OUTFIELD LUIS GONZALEZ AND MEL ANTHONY BOTH 25 ARE LESS POLISHED IN LEFT AND RIGHT FIELDS BUT BOTH SHOW PROMISE ANTHONY DROVE IN 80 RUNS WITH ONLY 105 HITS LAST YEAR AND LED THE TEAM WITH 19 HOMERS HE HAD THREE MORE AND 10 RBIS IN HIS FIRST 18 SPRINGTRAINING ATBATS THROUGH SATURDAY HOUSTON HAD THE NATIONAL LEAGUE'S WORST STARTINGPITCHING STAFF LAST SEASON IN TERMS OF WINS AND EARNEDRUN AVERAGE BUT THE ADDITION OF RIGHTHANDER DRABEK AND LEFTY SWINDELL EX OF CINCINNATI SHOULD CHANGE THAT THEY'RE STRONGARMED TYPES WHO'VE AVERAGED MORE THAN 200 INNINGS EACH OVER THE PAST FIVE SEASONS PETE HARNISCH THE NO 3 STARTER HAD A 910 WONLOST RECORD IN 1992 BUT THE TEAM WON 20 OF THE 34 GAMES HE BEGAN JASON GRIMSLEY HAS A REPUTATION FOR WILDNESS BUT HAS SHOWN WELL THIS SPRING THE BULLPEN SEEMS IN GOOD HANDS WITH RIGHTHANDER DOUG JONES HE LED THE ASTROS LAST YEAR IN SAVES 36 WINS 11 AND MUSTACHE SIZE HOWE SAYS THOUGH THAT IT WOULDN'T HURT IF AN EFFECTIVE LEFTY OR TWO EMERGED BESIDES SHOPPING FOR STARTING PITCHING ASTRO MANAGEMENT SPENT THE WINTER TRYING TO IMPROVE ITS BENCH WITH THE MAIN FREEAGENT ADDITIONS THERE BEING VETERAN BATSMEN KEVIN BASS AND CHRIS JAMES BASS IS THE MORE NOTABLE OF THE TWO IF ONLY BECAUSE HE WAS A BATTING STAR OF THE 1986 ASTROS WHO WON A DIVISIONAL CROWN AND ENGAGED THE NEW YORK METS IN A MEMORABLE PLAYOFF THAT ENDED IN A 76 16INNING THRILLER BASS BRINGS BACK TO HOUSTON FROM IRONICALLY THE METS NOT ONLY HIGH HOPES BUT THE CONVICTION THAT THE ASTRODOME MIGHT NOT BE THE POWERHITTER'S GRAVEYARD IT'S LONG BEEN CONSIDERED THE PLAYERS SAY THAT BAD AIR' IN THE ASTRODOME KEEPS BALLS FROM GOING OUT BUT IT HASN'T ALWAYS WORKED THAT WAY BASS AVERS WHEN YOU GET 30000 OR 40000 PEOPLE IN THERE ALL BREATHING IT USES UP THE OXYGEN AND HITS GO FARTHER I SAW THAT DURING OUR GOOD YEARS WHEN WE WERE DRAWING THAT MANY MAYBE WITH THIS GROUP WE'LL SEE THAT AGAIN 9303160101 930316 GENERAL MILLS NET CLIMBED TO RECORD IN ITS 3RD QUARTER BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS GENERAL MILLS INC BOLSTERED BY IMPROVING RESULTS FROM ITS TWO CASUALDINING RESTAURANT CHAINS REPORTED RECORD FISCAL THIRDQUARTER EARNINGS NET INCOME ROSE 67 TO 1409 MILLION OR 86 CENTS A SHARE FROM 1321 MILLION OR 80 CENTS A SHARE A YEAR EARLIER SALES ROSE 76 TO 201 BILLION FROM 187 BILLION RESULTS INCLUDE A RESTRUCTURING CHARGE FOR A EUROPEAN SNACKS JOINT VENTURE EQUAL TO FIVE CENTS A SHARE FOR THE PERIOD ENDED FEB 28 AND A YEARAGO CHARGE EQUAL TO ONE CENT A SHARE THERE WERE 24 MILLION FEWER SHARES OUTSTANDING THIS YEAR RESTAURANTS POSTED THEIR STRONGEST PERFORMANCE OF THE YEAR WITH SALES OF 711 MILLION AND OPERATING EARNINGS OF 581 MILLION COMPARED WITH SALES OF 6198 MILLION AND OPERATING EARNINGS OF 468 MILLION A YEAR EARLIER COMPANY SHARES FELL 50 CENTS TO 72 IN BIG BOARD TRADING YESTERDAY RED LOBSTER SEAFOOD RESTAURANTS REPORTED A 16 SALES GAIN IN ITS US STORES PARTLY BECAUSE ITS POPULAR LOBSTERFEST PROMOTION OCCURRED IN THE LATEST QUARTER USUALLY A SECONDQUARTER SALES BOOSTER A SHORTAGE OF LOBSTERS DELAYED THE PROMOTION OFFICIALS OF THE MINNEAPOLISBASED COMPANY ATTRIBUTED HIGHER CUSTOMER COUNTS PARTLY TO A NEW PRICING STRATEGY THAT INCLUDES 199 CHILDREN'S MEALS DESIGNED TO INCREASE FAMILY DINING RED LOBSTER OUTLETS IN CANADA AND JAPAN CONTINUED TO REFLECT THOSE COUNTRIES' DIFFICULT ECONOMIC CONDITIONS ALTHOUGH THE CANADIAN OPERATION ACHIEVED WHAT ONE OFFICIAL CALLED SOME NICE IMPROVEMENT THE OLIVE GARDEN ITALIAN RESTAURANT OPERATIONS IN THE US POSTED A 16 SALES GAIN BUT SLIGHTLY LOWER SAMESTORE SALES BECAUSE OF CHAIN EXPANSIONS IN ESTABLISHED MARKETS CONSUMER FOOD SALES ROSE 11 IN THE LATEST QUARTER PARTLY ON THE STRENGTH OF SEVERAL NEW BETTY CROCKER HELPER DESSERT AND SNACK PRODUCTS BIG G READYTOEAT CEREAL VOLUME WAS FLAT WITH A YEAR AGO BUT GENERAL MILLS SAID ITS DOLLAR SHARE OF THE 82 BILLION DOMESTIC COLDCEREAL MARKET ROSE THREETENTHS OF A PERCENTAGE POINT TO 294 H BREWSTER ATWATER JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID EXCELLENT EXPENSE CONTROL THROUGHOUT THE COMPANY CONTRIBUTED TO THE QUARTER'S RESULTS HE REITERATED EARLIER PREDICTIONS OF RECORD SALES AND EARNINGS FOR THE YEAR WHICH ENDS IN MAY FOR THE 39 WEEKS ENDED FEB 28 GENERAL MILLS REPORTED NEARLY A 9 EARNINGS GAIN TO 4386 MILLION OR 268 A SHARE COMPARED WITH 4025 MILLION OR 243 A SHARE A YEAR EARLIER SALES ROSE 61 TO 61 BILLION FROM 58 BILLION 9303160100 930316 VENEZUELA STARTS TO BRING BACK FOREIGN OIL FIRMS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL VENEZUELA IS BEGINNING TO SHOW RESULTS IN ITS EFFORTS TO BRING BACK THE FOREIGN OIL COMPANIES IT DROVE AWAY NEARLY TWO DECADES AGO ALTHOUGH SMALLER FOREIGN COMPANIES ALREADY ARE OPERATING SOME OLD VENEZUELAN OIL FIELDS BRITISH PETROLEUM CO WILL BE THE FIRST INTERNATIONAL MAJOR TO RETURN TO OIL DEVELOPMENT IN THE SOUTH AMERICAN COUNTRY SINCE THE 1976 NATIONALIZATION BP SAID IN LONDON YESTERDAY THAT IT HAD REACHED AGREEMENT WITH PETROLEOS DE VENEZUELA OR PDVSA TO REACTIVATE THE ABANDONED PEDERNALES FIELD WHICH PRODUCED INTERMITTENTLY FROM 1933 TO 1985 BP SAID THE FIELD SHOULD BE PRODUCING AGAIN SOON WITH OUTPUT EXPECTED TO RISE TO 20000 BARRELS A DAY BY 1997 JOHN BROWNE BP'S EXPLORATION CHIEF CALLED IT A FIRST STEP TO POSSIBLY EVEN MORE INTERESTING OPPORTUNITIES IN THE MONTHS AHEAD FOR THE COMPANY IN VENEZUELA THE PEDERNALES IS IN EASTERN VENEZUELA IN THE MONAGAS OIL PROVINCE AND IS ESTIMATED TO HAVE CONTAINED 500 MILLION BARRELS OF OIL WHEN DISCOVERED ALTHOUGH NOT ALL IS RECOVERABLE PRODUCTION ALREADY HAS BEGUN IN THE AREA FROM THE FIRST VENEZUELAN OIL FIELD TO BE OPERATED BY A US COMPANY SINCE THE NATIONALIZATION AS PREVIOUSLY REPORTED A JOINT VENTURE BETWEEN BENTON OIL & GAS CO OF OXNARD CALIF AND VINCCLER CA ITS VENEZUELAN PARTNER IS PRODUCING 2100 BARRELS OF OIL A DAY FROM FOUR WELLS IN THE REACTIVATED URACOA FIELD THE URACOA IS ONE OF THREE FIELDS MAKING UP THE SOUTH MONAGAS UNIT IN EASTERN VENEZUELA THE JOINT VENTURE EXPECTS TO INVEST AN ESTIMATED 75 MILLION OVER SEVEN YEARS TO FULLY REACTIVATE AND DEVELOP ALL THREE FIELDS PDVSA'S INITIAL AUCTION OF OLD OIL FIELDS FOR REACTIVATION BY PRIVATE INVESTORS DREW ATTENTION FROM OIL COMPANIES AROUND THE WORLD BUT RECEIVED BIDS ON ONLY FIVE OF THE NINE UNITS OFFERED BENTON AND JAPAN'S TEIKOKU OIL CO WERE AMONG THE FOREIGN COMPANIES TO BE AWARDED OPERATING SERVICE CONTRACTS A UNIT OF ROYAL DUTCH/SHELL GROUP ALSO WAS A SUCCESSFUL BIDDER BUT LATER WITHDREW THE FIELD IT WAS TO DEVELOP IS THE PEDERNALES WHICH NOW HAS BEEN AWARDED TO BP PDVSA NOW HAS INVITED THE FOREIGN COMPANIES TO A SECOND ROUND OF BIDDING ON INACTIVE OIL FIELDS THAT IS SCHEDULED TO END IN JULY AND INVOLVES THE AUCTION OF CONTRACTS TO REACTIVATE MORE THAN 70 OLD FIELDS IN 13 UNITS THROUGHOUT VENEZUELA NORTH OF THE ORINOCO RIVER IN ADDITION TO INVITING OIL COMPANIES TO JOIN IT IN REJUVENATING FORMER PRODUCING AREAS PDVSA IS SEEKING FOREIGN PARTNERS TO DEVELOP THE NATION'S MASSIVE BUT LARGELY UNTAPPED RESERVES OF EXTRAHEAVY OIL ALTHOUGH APPROVAL OF CONGRESS IS NEEDED FOR THESE VENTURES PDVSA SAID YESTERDAY IT EXPECTS TO SIGN SEVERAL SUCH ASSOCIATIONS SOON NEGOTIATIONS ON ONE SUCH VENTURE BETWEEN MARAVEN A PDVSA AFFILIATE AND FRANCE'S TOTAL AND JAPAN'S MARUBENIITOCHU WERE SAID TO BE IN AN ADVANCED STAGE 9303160099 930316 FINANCING BUSINESS KAUFMAN & BROAD HOME CORP KAUFMAN & BROAD HOME CORP LOS ANGELES SAID IT FILED STATEMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION TO REGISTER TWO SECURITIES ISSUES THE HOMEBUILDER PLANS TO OFFER FIVE MILLION DEPOSITARY SHARES EACH REPRESENTING ONEFIFTH OF A SHARE OF PREFERRED STOCK EACH DEPOSITARY SHARE WILL CONVERT AUTOMATICALLY AT MATURITY INTO A MAXIMUM OF ONE SHARE OF KAUFMAN & BROAD HOME COMMON STOCK THE COMPANY ALSO HAS REGISTERED TO OFFER 10YEAR SENIOR SUBORDINATED NOTES VALUED AT 175 MILLION THE COMPANY WAS FOUNDED IN 1957 BY DONALD KAUFMAN AND ELI BROAD LATER THE FINANCIALSERVICES FIRM BROAD INC WAS SPLIT FROM THE ORIGINAL CORPORATION RECENTLY BROAD INC'S NAME WAS CHANGED TO SUNAMERICA INC MR BROAD REMAINS CHAIRMAN OF BOTH COMPANIES 9303160098 930316 WHITE HOUSE MAY SEEK BROAD AUTHORITY FOR US STATES TO REGULATE HEALTH FEES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS CONSIDERING REQUESTING BROAD NEW POWERS FOR FEDERAL AND STATE GOVERNMENTS TO REGULATE MEDICAL FEES AND HEALTHINSURANCE PREMIUMS WORKING PAPERS FROM AN ADMINISTRATION ADVISORY GROUP LIST THE POWERS AMONG SEVERAL OPTIONS FOR SETTING AND ENFORCING THE GLOBAL HEALTHCARE BUDGET ADVOCATED BY PRESIDENT CLINTON THE OPTIONS RANGE FROM VOLUNTARY COMPLIANCE UNDER WHICH DOCTORS AND HOSPITALS WOULD BE ENCOURAGED TO FOLLOW A NATIONAL FEE SCHEDULE TO ACTUALLY SETTING LIMITS ON THE PREMIUMS THAT HEALTH INSURERS CHARGE AND ESTABLISHING A FIXED SET OF FEES FOR ALL MEDICAL SERVICES THE PAPERS ALSO MAKE CLEAR THAT THE ADMINISTRATION HASN'T DECIDED EXACTLY WHAT A NATIONAL HEALTH BUDGET WOULD ENCOMPASS ONE SET OF PAPERS SAYS IT IS NOT FEASIBLE TO PLACE A CAP ON ALL NATIONAL HEALTH SPENDING INCLUDING PERSONAL OUTOFPOCKET EXPENDITURES RESEARCH AND CONSTRUCTION OF HEALTH FACILITIES A MORE REASONABLE IDEA THAT PAPER SUGGESTS WOULD BE TO LIMIT SPENDING ON PERSONAL HEALTH SERVICES AND SUPPLIES EXCEPT FOR MEDICAL SERVICES THAT INDIVIDUALS CHOOSE TO PAY FOR OUT OF THEIR OWN POCKETS BECAUSE SUCH SPENDING WOULD BE DIFFICULT TO MONITOR AND REGULATE THE PAPER ALSO SUGGESTS A SPENDING CEILING COULD BE ACHIEVED BY LIMITING OUTLAYS FOR HEALTH PLANS OFFERING A STANDARD PACKAGE OF BENEFITS MR CLINTON'S PLAN IS EXPECTED TO ESTABLISH A PACKAGE OF BENEFITS THAT ALL AMERICANS WOULD BE ENTITLED TO RECEIVE THROUGH THEIR EMPLOYERS OR THROUGH GOVERNMENT SUBSIDIES FOR THE UNEMPLOYED HOWEVER THE PAPER WARNS THAT THIS OPTION COULD LEAD TO TWOTIER HEALTH CARE WHERE THE BEST' PHYSICIANS HOSPITALS ETC REMAIN OUTSIDE THE ACCOUNTABLE HEALTH PLAN SYSTEM IN RETURN FOR HIGHER REIMBURSEMENT A FOURTH OPTION IS TO LIMIT ALL SPENDING ON INSURED HEALTH SERVICES AND SUPPLIES INCLUDING SOCALLED SELFINSURED PLANS UNDER WHICH A LARGE COMPANY UNDERWRITES ITS OWN EMPLOYEE HEALTH PLAN ANOTHER OPTION IS CAPPING PUBLIC EXPENDITURES ONLY THAT OPTION SEEMS UNLIKELY HOWEVER BECAUSE THE ADMINISTRATION WANTS TO PREVENT HOSPITALS DOCTORS AND OTHERS PROVIDING HEALTH CARE FROM SHIFTING THEIR COSTS ONTO THE PRIVATE SECTOR ALREADY THEY CHARGE PATIENTS WHO PAY PRIVATELY SIGNIFICANTLY MORE THAN IS PAID BY THE GOVERNMENT MEDICARE AND MEDICAID PROGRAMS FOR THE ELDERLY AND THE POOR HOWEVER THE NATIONAL BUDGET IS DEFINED THE WORKING PAPERS MAKE CLEAR THAT THE ADMINISTRATION IS EXAMINING RIGID MEASURES TO ENFORCE IT SOME OUTSIDE HEALTH EXPERTS HAD PREDICTED THAT THE ADMINISTRATION WAS LIKELY TO ATTEMPT SETTING ONLY SPENDING TARGETS NOT ENFORCED LIMITS BUT ANOTHER WORKING PAPER SAYS A BUDGET IS ONLY CREDIBLE IF IT CAN BE ENFORCED AND IF DECISIONMAKERS HAVE AN INCENTIVE TO MEET IT THE COPY OF A WORKING PAPER ON ENFORCING THE BUDGET OBTAINED BY THE WALL STREET JOURNAL DIDN'T INCLUDE ALL THE SUGGESTED OPTIONS BUT AMONG THE MEASURES LISTED WERE LIMITING THE ANNUAL RATE OF INCREASE FOR HEALTH PLANS UNDER ONE IDEA OUTLINED EACH STATE WOULD DETERMINE ALLOWABLE RATES OF INCREASE FOR EACH INSURER AND SELFINSURING EMPLOYERS ANYONE WHO EXCEEDED THE ALLOWABLE INCREASE WOULD BE FINED OR TAXED FEDERALLY SET RATES FOR ALL MEDICAL SERVICES HOWEVER THE PAPER NOTES THAT BECAUSE MR CLINTON WANTS TO ENCOURAGE ENROLLMENT IN HEALTH MAINTENANCE ORGANIZATIONS WHICH OFFER ENROLLEES ALL NECESSARY SERVICES FOR A SET ANNUAL FEE SUCH A SYSTEM MIGHT NOT WORK IT ALSO NOTES THAT A RATE SYSTEM WOULD HAVE TO BE COUPLED WITH CONTROLS ON THE VOLUME OF MEDICAL SERVICES PERFORMED REGULATING INSURANCE PREMIUMS AND MAKING A RATESETTING SYSTEM AVAILABLE TO PLANS IF THEY WISHED TO USE IT VOLUNTARY COMPLIANCE MEASURES SUCH AS SIMPLY ENCOURAGING DOCTORS HOSPITALS AND OTHER PROVIDERS OF CARE TO CHARGE THE FEDERALLY SUGGESTED RATES OR REQUIRING DOCTORS AND OTHERS TO INFORM PATIENTS OF COSTS BUT ALLOWING PROVIDERS TO CHARGE WHATEVER THEY WANTED LIMITING ENROLLMENT IN HIGHCOST HEALTH PLANS MR CLINTON IS EXPECTED TO PROPOSE A SYSTEM WHEREBY LARGE REGIONAL PURCHASING AGENTS SHOP FOR HEALTH COVERAGE FOR THOUSANDS OF BUSINESSES AND CONTRACT WITH A NUMBER OF PLANS UNDER THIS OPTION THE NUMBER OF PEOPLE WHO COULD ENROLL IN THE HIGHERCOST PLANS WOULD BE LIMITED THE PAPERS RAISE A NUMBER OF CONCERNS ABOUT THE POSSIBILITY THAT SOME MEASURES TO ENFORCE A NATIONAL BUDGET COULD HINDER THE INNOVATION MR CLINTON IS HOPING TO ENCOURAGE IN A REGULATED MARKET SYSTEM TO HOLD DOWN COST AND IMPROVE QUALITY ENFORCEMENT INCENTIVES DISTORT THE INCENTIVES IN A PURE' MANAGED COMPETITION WORLD ONE DOCUMENT SAYS BUT DIFFERENT ENFORCEMENT MECHANISMS VARY CONSIDERABLY IN THE EXTENT TO WHICH THESE DISTORTIONS ALTER THE UNDERLYING STRUCTURE OF THE MARKET 9303160097 930316 REVIEW & OUTLOOK EDITORIAL FINISH THE REVOLUTION WE HOPE THE MEMBERS OF THE RUSSIAN CONGRESS ENJOYED THEMSELVES LAST WEEK THEY GOT TO SCREAM AND YAMMER AT BORIS YELTSIN AND HIS DEPUTIES THEY VOTED YES TO PIECES OF PAPER THAT PURPORT TO LIMIT THE PRESIDENT'S POWERS ALL THE WORLD OBSERVED THAT THEY HAD HUMILIATED MR YELTSIN AND TARNISHED HIS PRESTIGE BUT THE JOYS OF LAST WEEK ARE SOON GOING TO TASTE LIKE ASH IN THE MEMBERS' MOUTHS WHAT THE CONGRESS REALLY DID WAS DEMONSTRATE THAT IT IS AN IMPLACABLE FOE OF COHERENT GOVERNMENT THERE CAN NO LONGER BE SERIOUS TALK OF POWER SHARING OR COOPERATION BETWEEN THE PRESIDENT AND THE CONGRESS THE CONGRESS SLAPPED MR YELTSIN IN THE FACE WITH ITS GLOVE A SATISFYING GESTURE BUT NOW WILL FIND THAT IT DOESN'T HAVE THE POWER TO BACK UP THE CHALLENGE SO LONG AS THE CONFLICT WAS WAGED WITHIN LEGISLATIVE CONFINES THE GORBACHEVERA PARLIAMENTARIANS LED BY PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV COULD ENGINEER VICTORIES AT LEAST IN THE SPHERE OF PUBLIC RELATIONS BUT IF MR YELTSIN WAGES THE WAR OUTSIDE THE CONGRESS THE CONDITIONS CHANGE THE CONGRESS AND THE PRECOUP CONSTITUTION HAVE LITTLE PUBLIC SUPPORT SYMBOLICALLY MR KHASBULATOV'S OWN DISTRICT IN THE CHECHEN REGION HAS DISOWNED HIM THE CHECHENS THEMSELVES DO NOT RECOGNIZE THE RUSSIAN GOVERNMENT HAVING FORMULATED A MINIINDEPENDENCE BID MR KHASBULATOV IS A PARLIAMENTARIAN WITHOUT A CONSTITUENCY MR KHASBULATOV URGED PARLIAMENTARIANS TO RETURN HOME THIS WEEK AND TELL THEIR FOLLOWERS TO DISOBEY ANY PRESIDENTIAL ORDERS WHO WILL LISTEN WHEN MR YELTSIN THREATENED TO GO TO THE PEOPLE THE CONGRESS CONFISCATED THE 20 MILLION DEVOTED IN THE BUDGET TO COVER THE COSTS OF STAGING REFERENDUMS BUT FRUSTRATING POPULAR WILL IS NOT LIKELY TO BE A WINNING POLICY LAST WEEK'S SESSION SEEMS TO HAVE HAD A CLARIFYING EFFECT IN WESTERN CAPITALS THE CLINTON ADMINISTRATION HAS SENT SIGNALS THAT IT WILL NOT OPPOSE EFFORTS TO SUSPEND THE CONGRESS SO LONG AS THEY ARE CARRIED OUT IN A WAY THAT ENSURES GREATER DEMOCRACY THE RUSSIAN MILITARY SEEKS STABILITY ABOVE ALL IT MIGHT BE UNHAPPY TO ENDORSE PRESIDENTIAL RULE BUT IT WOULD PROBABLY ALSO BE LOATHE TO UNDERMINE MR YELTSIN VICE PRESIDENT ALEKSANDER RUTSKOI THE POLITICIAN MOST POPULAR WITH THE MILITARY BRASS HAS TONED DOWN HIS CRITICISM OF MR YELTSIN AND DISTANCED HIMSELF FROM MR KHASBULATOV THE CONGRESS WILL STAND NO CHANCE IN THE WAR OF IDEAS IT OPPOSES EVERYTHING BUT HAS NO ALTERNATIVES OF ITS OWN ITS ONE POLICYMAKING BODY THE CENTRAL BANK MINDLESSLY SPEWS OUT CURRENCY AND GIVES US SOME INDICATION OF WHAT MADNESS IT WOULD BE IF THE CONGRESS TRIED TO RUN THE GOVERNMENT IT IS TRUE THAT MR YELTSIN'S POPULARITY IS DOWN THE FURIOUS COMBAT IN THE CONGRESS TAKES PLACE IN AN ATMOSPHERE OF NATIONAL ENNUI THOSE WHO FEAR A CIVIL WAR SHOULD REMEMBER THAT THERE ARE FEW RUSSIANS WILLING TO MARCH LET ALONE FIGHT FOR ONE POLITICAL FACTION OR ANOTHER NEVERTHELESS MR YELTSIN IS STILL THE NATION'S MOST POPULAR FIGURE MR RUTSKOI IS SECOND AGAINST THE CONGRESS MR YELTSIN HAS NO TROUBLE A TV SURVEY REGISTERED 86 SUPPORT FOR THE PRESIDENT IN SUCH A CONTEST MR YELTSIN'S CORRECT COURSE THEN IS TO GO TO THE PEOPLE THE QUESTION IS HOW HE VOWS TO PUSH THROUGH A NONBINDING REFERENDUM OR PLEBISCITE THE RISKS OF THIS POLICY ARE MANY SOME INDEPENDENCEMINDED REGIONS MAY BOYCOTT IT THOUGH MR YELTSIN RECEIVED A VOTE OF SUPPORT FROM REGIONAL LEADERS ON MARCH 9 SOME ARGUE THAT IT IS UNCONSTITUTIONAL TO MOUNT ANY REFERENDUM WITHOUT PARLIAMENTARY SUPPORT SO THE ISSUE COULD BOG DOWN IN THE COURTS A LOW TURNOUT OR INCONCLUSIVE RESULT WOULD LOCK IN THE CURRENT IMPASSE THE CONGRESS COULD IGNORE THE RESULT MR YELTSIN SHOULD GO AHEAD AND TAKE THOSE RISKS BUT IF HE IS GOING TO THE PEOPLE ANYWAY MAYBE HE SHOULD GO ALL THE WAY AND FORCE NEW PRESIDENTIAL AND LEGISLATIVE ELECTIONS THE UNDERLYING REALITY OF THE SITUATION IS THAT THE SECOND RUSSIAN REVOLUTION WILL NOT BE COMPLETE UNTIL THE CONSTITUTION AND THE PARLIAMENTARIANS FROM THE ANCIEN REGIME ARE REPLACED NEW ELECTIONS WILL NOT END CONFLICT BETWEEN THE PRESIDENT AND HIS OPPOSITION CONFLICT IS HEALTHY BUT NEW ELECTIONS WILL ENSURE THAT ALL SIDES ARE ON EQUAL DEMOCRATIC FOOTING IT WOULD HAVE BEEN NICE TO DELAY NEW LEGISLATIVE ELECTIONS UNTIL ECONOMIC CHANGES WERE FURTHER ALONG AS WE NOTED LAST WEEK THERE IS NO DIRECT LINK BETWEEN POLITICAL TURMOIL AND CONTINUING PRIVATE SECTOR DEVELOPMENT WHEN A LARGER MIDDLE CLASS AND BUSINESS SECTOR DEVELOPS POLITICAL PARTIES WILL HAVE FIRMER ROOTS IN SOCIETY BUT BY MAKING ITSELF IMPOSSIBLE THE CONGRESS HAS RUSHED THE TIMETABLE THE TIME IS COMING FOR MR YELTSIN TO FINISH THE REVOLUTION 9303160096 930316 DU PONT BASF PLAN TO CANCEL INCINERATOR JOB CHEMICAL FIRMS SAY MOVE INVOLVING OHIO FACILITY IS FOR BUSINESS REASONS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DU PONT CO AND BASF CORP SAID THEY CANCELED CONTRACTS UNDER WHICH THEY EACH WOULD HAVE SUPPLIED ABOUT ONETHIRD OF THE HAZARDOUS WASTE SENT TO A CONTROVERSIAL INCINERATOR BEING TESTED IN EAST LIVERPOOL OHIO BY WASTE TECHNOLOGIES INDUSTRIES WITH THE INCINERATOR ALREADY UNDER ATTACK FOR ENVIRONMENTAL REASONS THIS LATEST MOVE RAISES QUESTIONS ABOUT THE FINANCIAL VIABILITY OF THIS AND OTHER RECENTLY CONSTRUCTED OR PLANNED INCINERATORS THE CHEMICAL COMPANIES SAID THEY MADE THE DECISION FOR BUSINESS REASONS AND THAT THEY WEREN'T OPPOSED TO OPERATION OF THE INCINERATOR WHICH HAS BEEN A LIGHTNING ROD FOR ENVIRONMENTAL OPPOSITION IN RECENT MONTHS THEY ARE NEGOTIATING NEW CONTRACTS UNDER WHICH THEY WILL MOST LIKELY SHIP A MUCH SMALLER AMOUNT OF WASTES TO THE WTI INCINERATOR THE COMPANIES SAID BUT THE ACTION BY DU PONT AND BASF A UNIT OF BASF AG OF GERMANY SIGNALED THAT INCREASED CAPACITY IN THE INCINERATION INDUSTRY AND REDUCTIONS IN THE AMOUNT OF HAZARDOUS WASTES BEING PRODUCED BY CHEMICAL COMPANIES MAY MEAN THAT THE CONSTRUCTION OF STATEOFTHEART INCINERATORS WILL SOON BE A THING OF THE PAST INDUSTRY EXPERTS SAID CHEMICAL COMPANIES HAVE COME TO A FUNDAMENTAL REASSESSMENT OF THE INCINERATION BUSINESS SAID HUGH HOLMAN AN ANALYST WITH ALEX BROWN & SONS IN BALTIMORE THEY NOW APPEAR TO HAVE ADEQUATE CAPACITY CHEMICAL WASTE MANAGEMENT INC WHICH IS UNDER CONTRACT TO SUPPLY THE REMAINING ONETHIRD OF THE WASTE STREAM TO THE WTI PLANT SAID IT IS MONITORING THE DU PONT AND BASF RENEGOTIATIONS AND HASN'T DECIDED WHETHER IT WILL FOLLOW A SIMILAR COURSE THE 165 MILLION INCINERATOR OPERATED BY WTI WHICH IS A UNIT OF VON ROLL LTD HAS AN ANNUAL CAPACITY OF ABOUT 60000 TONS EARLIER THIS MONTH A FEDERAL JUDGE RULED THAT THE INCINERATOR MAY BEGIN A TRIAL BURN BUT MAY NOT START COMMERCIAL OPERATION UNTIL THE ENVIRONMENTAL PROTECTION AGENCY HAS AFFIRMED THAT THE INCINERATOR IS SAFE THE NEW RULING APPEARS TO GIVE THE EPA UP TO A YEAR TO EXAMINE THE RESULTS OF AN EIGHTDAY TRIAL BURN BEFORE THE PLANT BEGINS COMMERCIAL OPERATION LIMITED COMMERCIAL OPERATION GENERALLY BEGINS IMMEDIATELY AFTER AN INCINERATOR'S TEST BURN DU PONT AND BASF EXERCISED AN OPTION IN THEIR 1991 CONTRACTS WITH WTI THAT ALLOWED THEM TO CANCEL THEIR AGREEMENTS IF THE INCINERATOR WASN'T OPERATING BY THE END OF LAST YEAR NONE OF THE COMPANIES INVOLVED WOULD DISCLOSE THE DOLLAR VALUE OF THE TAKE OR PAY CONTRACTS IN DU PONT'S CASE THE DECISION TO CANCEL WAS BASED ON THE FACT THAT A NUMBER OF CEMENT KILNS OPERATING AS WASTE INCINERATORS HAVE PROVIDED GREATER CAPACITY IN THE INDUSTRY OVER THE PAST FEW YEARS AND WE'RE PRODUCING A SMALLER WASTE STREAM SAID IRVIN LIPP A SPOKESMAN FOR THE WILMINGTON DEL COMPANY MR LIPP SAID THAT UNDER THE ORIGINAL CONTRACT DU PONT WOULD HAVE FULFILLED ABOUT HALF THE CONTRACT WITH ITS OWN WASTES AND THAT HAZARDOUS WASTES COLLECTED FROM OTHER COMPANIES WOULD HAVE MADE UP THE REST OF ITS ANNUAL COMMITMENT OF NEARLY 20000 TONS GREENPEACE A LONGTIME FOE OF THE INCINERATOR SAID THAT DU PONT'S ANALYSIS CONFIRMS WHAT THE EPA AND THE NATIONAL GOVERNORS ASSOCIATION HAVE PREVIOUSLY CONCLUDED WTI IS NOT NEEDED TO HANDLE HAZARDOUS WASTE FROM AMERICAN INDUSTRY THE INCINERATOR ATTRACTED NATIONAL ATTENTION IN DECEMBER WHEN ALBERT GORE WHO WAS VICE PRESIDENTELECT AT THE TIME ISSUED A STATEMENT PLEDGING THAT THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE PLANT TO CONDUCT A TEST BURN UNTIL QUESTIONS ABOUT SAFETY AND ALLEGED PROCEDURAL IRREGULARITIES WERE RESOLVED THE INCINERATOR IS LOCATED ABOUT 1100 FEET FROM AN ELEMENTARY SCHOOL UNDER THE NEW AGREEMENT BEING NEGOTIATED DU PONT IS GETTING OUT OF THE HAZARDOUS WASTE HAULING BUSINESS AND WILL ONLY SHIP ITS OWN WASTES TO THE WTI INCINERATOR MR LIPP SAID WITH MORE INCINERATORS NOW OPERATING IT'S LIKELY THAT THE CHEMICAL COMPANY WILL BE ABLE TO NEGOTIATE MORE FAVORABLE INCINERATION RATES THAN IT COULD HAVE TWO YEARS AGO HE ADDED A SPOKESMAN FOR BASF CORP PARSIPPANY NJ SAID IT SOLD ABOUT A HALF DOZEN BUSINESSES OVER THE PAST FEW YEARS AND DOESN'T NEED AS MUCH WASTE CAPACITY WTI IS TALKING TO SEVERAL COMPANIES WHO ARE INTERESTED IN SHIPPING WASTES TO THE EAST LIVERPOOL INCINERATOR A COMPANY SPOKESWOMAN SAID 9303160095 930316 WHO'S NEWS CONTINENTAL BANK PAID ITS CHAIRMAN A BONUS OF 922500 LAST YEAR CHICAGO CONTINENTAL BANK CORP REWARDED CHAIRMAN THOMAS C THEOBALD WITH A 922500 BONUS IN 1992 BRINGING HIS TOTAL CASH COMPENSATION TO 15 MILLION ACCORDING TO THE COMPANY'S PROXY STATEMENT MR THEOBALD'S 1992 BONUS WAS MORE THAN DOUBLE HIS LAST BONUS OF 395850 IN 1990 BECAUSE OF THE COMPANY'S POOR PERFORMANCE IN 1991 THE 55YEAROLD MR THEOBALD RECEIVED NO SUCH REWARD THAT YEAR IN ADDITION TO THE BONUS AND A BASE SALARY OF 620000 MR THEOBALD ALSO RECEIVED STOCK OPTIONS FOR 146000 SHARES AT 1131 A SHARE AND 50000 SHARES AT 13 IN NEW YORK STOCK EXCHANGE TRADING CONTINENTAL'S STOCK ROSE 25 CENTS YESTERDAY TO 2550 A SHARE GIVING THE OPTIONS A VALUE OF ABOUT 28 MILLION IN 1992 MR THEOBALD RECEIVED SLIGHTLY MORE THAN 1 MILLION FROM THE EXERCISE OF PREVIOUSLY HELD OPTIONS THE BONUS TO MR THEOBALD WHO HEADS THE NATION'S 30THLARGEST BANK NEARLY RIVALED THE 105 BILLION BONUS GIVEN LAST YEAR TO JOHN S REED CHAIRMAN OF CITICORP THE NATION'S LARGEST BANKING COMPANY MR THEOBALD ONCE WAS VICE CHAIRMAN OF CITICORP OTHER TOP CONTINENTAL EXECUTIVES ALSO FARED WELL IN 1992 THE PROXY STATEMENT SAID THE COMPANY'S THREE VICE CHAIRMEN EACH RECEIVED BETWEEN 563750 AND 666250 IN BONUSES LAST YEAR THE COMPANY ATTRIBUTED THE BONUSES TO AN EARNINGS TURNAROUND TO A PROFIT OF 222 MILLION FROM A 1991 LOSS OF 76 MILLION AS WELL AS THE DOUBLING OF ITS STOCK PRICE DURING THE YEAR 9303160094 930316 TAGGART/FASOLA BUYS HERMAN'S SPORT CHAIN FROM UK'S ISOSCELES CARTERET NJ AN INVESTOR GROUP COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF HERMAN'S WORLD OF SPORTING GOODS FROM BRITAIN'S ISOSCELES PLC AND AT THE SAME TIME SOUGHT PROTECTION FOR THE COMPANY UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE INVESTORS LED BY TAGGART/FASOLA GROUP SAID THAT IN THE PAST FEW YEARS HERMAN'S HAS BEEN HAMPERED BY OVEREXPANSION AND AN OVERLEVERAGED BALANCE SHEET THAT HAS HAD A SIGNIFICANT IMPACT ON HERMAN'S BOTTOM LINE FOR SEVERAL YEARS NOW AND HERMAN'S WILL POST A LOSS OF MORE THAN 185 MILLION IN ITS CURRENT FISCAL YEAR ENDING MAY 1 THE INVESTOR GROUP SAID HERMAN'S SAID IT PLANS TO CUT COSTS STREAMLINE MANAGEMENT RESTRUCTURE THE DISTRIBUTION SYSTEM FOCUS ON MARKETS IN THE NORTHEAST AND SELL OR CLOSE A NUMBER OF STORES OUTSIDE ITS CORE MARKETS THE INVESTOR GROUP SAID HERMAN'S HAS OBTAINED A COMMITMENT FROM CHEMICAL BANKING CORP'S CHEMICAL BANK TO PROVIDE 40 MILLION IN DEBTORINPOSSESSION FINANCING ONCE APPROVED BY THE BANKRUPTCY COURT IN TRENTON NJ THE FINANCING WILL BE AVAILABLE FOR THE COMPANY TO MEET ITS CONTINUING OBLIGATIONS TO SUPPLIERS AND VENDORS WILLIAM F TAGGART HAS BEEN NAMED CHAIRMAN OF HERMAN'S AND ALFRED F FASOLA JR HAS BEEN NAMED CHIEF EXECUTIVE MARTIN BURKE HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR TAGGART 58 YEARS OLD CHAIRMAN OF TAGGART/FASOLA GROUP ALSO SERVES AS PRESIDENT OF TAGGART INTERNATIONAL INC WHICH OWNS AND OPERATES TAGGART'S DRIVING SCHOOLS MR FASOLA 43 YEARS OLD IS PRESIDENT OF TAGGART/FASOLA GROUP 9303160093 930316 COLLINS INDUSTRIES TO RESTATE RESULTS AMID INVESTIGATION BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL AMID A CONTINUING INVESTIGATION INTO ITS RECENT FINANCIAL REPORTS COLLINS INDUSTRIES INC SAID IT EXPECTS TO LOWER ITS RESULTS SHARPLY FOR FISCAL 1992 AND ITS FIRST QUARTER ENDED JAN 31 THE RESTATED RESULTS FOR THE YEAR APPARENTLY WILL BE FAR WORSE THAN ORIGINALLY ESTIMATED BY THE HUTCHINSON KAN AMBULANCE MAKER WHOSE CHIEF FINANCIAL OFFICER RESIGNED THIS MONTH YESTERDAY'S ANNOUNCEMENT WAS ALSO THE FIRST INDICATION OF REPORTING PROBLEMS FOR THE CURRENT YEAR BY THE COMPANY WHICH ALSO SAID THAT THE SECURITIES AND EXCHANGE COMMISSION HAS BEGUN AN INFORMAL INVESTIGATION INTO THE SITUATION THE COMPANY SAID IT NOW EXPECTS ITS RESTATED RESULTS FOR THE YEAR ENDED OCT 31 TO SHOW A NET LOSS OF ABOUT 700000 OR 13 CENTS A SHARE AFTER EXTRAORDINARY ITEMS THE COMPANY HAD REPORTED NET INCOME OF ABOUT 11 MILLION OR 20 CENTS A SHARE AFTER AN EXTRAORDINARY CHARGE OF 673000 OR 12 CENTS A SHARE RELATED TO EARLY RETIREMENT OF DEBT PRESIDENT DONALD COLLINS SAID AN INVESTIGATION BY A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS HAS INDICATED THAT ABOUT 16 MILLION IN VENDOR PAYABLES FOR THE FISCAL YEAR WERE NOT PROPERLY RECORDED MR COLLINS ALSO SAID THAT RESTATED FIGURES REFLECT THE DEFERRAL OF ABOUT 12 MILLION OF PREVIOUSLY RECORDED GROSS PROFIT FROM AMBULANCE AND WHEELCHAIR LIFT SALES LARGELY AS A RESULT OF THE DISCOVERY OF ABOUT 900000 OF UNSUPPORTED ACCOUNTING ENTRIES THE COMPANY SAID IT EXPECTS TO REPORT A RESTATED NET LOSS OF ABOUT 100000 OR ONE CENT A SHARE FOR THE FIRST QUARTER THE COMPANY ORIGINALLY REPORTED A NET INCOME OF 601000 OR NINE CENTS A SHARE THE COMPANY'S INVESTIGATION INTO ITS FINANCES FOLLOWED ALLEGATIONS MADE AT ITS ANNUAL MEETING LAST MONTH THE COMPANY HAS DECLINED TO IDENTIFY THE SOURCE OF THOSE ALLEGATIONS MR COLLINS SAID THE DIRECTORS' COMMITTEE IS CONTINUING ITS REVIEW OF THE COMPANY'S FINANCIAL RECORDS INCLUDING THOSE FOR THE CURRENT SECOND QUARTER HE SAID THE SEC HAS REQUESTED CERTAIN BASIC INFORMATION AND DOCUMENTS RELATED TO COMPANY POLICIES AND ACCOUNTING METHODS ON MARCH 4 THE COMPANY ANNOUNCED THE SUSPENSION OF TWO STAFF ACCOUNTANTS AND THE RESIGNATION OF JOSEPH S HEBB CHIEF FINANCIAL OFFICER WHO IS CONTINUING TO COOPERATE WITH THE DIRECTORS' COMMITTEE SAID MR COLLINS THE COMPANY IS CURRENTLY NEGOTIATING WITH A POTENTIAL SUCCESSOR TO MR HEBB HE ADDED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COLLINS SHARES CLOSED AT 3375 DOWN 375 CENTS 9303160092 930316 BOOMTOWN PLANS NEVADA CASINO RENO NEV BOOMTOWN INC A CASINO OWNER SAID IT SIGNED A MEMO OF UNDERSTANDING FOR THE CONSTRUCTION OF A 60 MILLION CASINO AND HOTEL COMPLEX IN NEVADA ALONG A MAJOR HIGHWAY BETWEEN LOS ANGELES AND LAS VEGAS 9303160091 930316 POLITICS & POLICY BLOCKGRANT PROGRAM FAVORED BY CLINTON SHOWS HOW GOVERNMENT GRINDER CAN DO IN GOOD IDEAS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS TOUTS IT AS THE BEST OF THE URBAN PROGRAMS WHILE PRESIDENT CLINTON SAYS IT HAS BEEN ABSOLUTELY CRITICAL TO CREATING JOBS IN ARKANSAS BUT NOT EVERYONE IS CRAZY ABOUT THE FEDERAL GOVERNMENT'S HEFTY 4 BILLIONAYEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR STATE AND LOCAL GOVERNMENTS OR ABOUT THE PRESIDENT'S PLANS TO FATTEN IT BY 25 BILLION THIS YEAR MAKING IT THE THIRD BIGGEST ELEMENT IN HIS STIMULUS PACKAGE THE PROGRAM IS DESIGNED TO HELP CITIES REVITALIZE NEIGHBORHOODS CLEAR SLUMS AND PROMOTE JOBS AND BOOSTERS CITE MANY SUCCESS STORIES BUT CRITICS SAY THAT MONEY IN SOME CASES WINDS UP BEING MISUSED OR WASTED OR SPENT IN AFFLUENT COMMUNITIES WHOSE NEEDS ARE HARDLY PRESSING THE CONGRESSIONAL BUDGET OFFICE SAYS GRANTS GO TO 19 OF THE NATION'S TOP 20 COUNTIES IN TERMS OF PERCAPITA INCOME NOTING THAT BEVERLY HILLS CALIF AND GROSSE POINTE MICH BOTH RECEIVE MONEY UNDER THE PROGRAM CAROL COX WAIT PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET ASKS CAN YOU IMAGINE A GOVERNMENT WITH A 300 BILLION DEFICIT GOING OUT TO BORROW MORE MONEY TO SEND MONEY TO PLACES LIKE THAT OFFICIALS IN THOSE COMMUNITIES COUNTER THAT THE FUNDS ARE USED TO HELP ELDERLY LOWINCOME RESIDENTS THE BLOCKGRANT PROGRAM UNDERSCORES A DILEMMA THAT COULD PLAGUE THE CLINTON ADMINISTRATION AS IT SEEKS TO INCREASE PUBLIC INVESTMENT IN AMERICA WHILE THE IDEAS MAY SOUND GREAT IN WASHINGTON THEY OFTEN GET GROUND UP BY THE SAUSAGE GRINDER OF AMERICAN GOVERNMENT IN ST LOUIS FOR INSTANCE MAYOR VINCENT SCHOEMEHL AND THE CITY'S 28 ALDERMEN GOT INTO A CATFIGHT LATE LAST YEAR OVER HOW TO SPEND 45 MILLION IN BLOCKGRANT FUNDS PLANNED FOR HOUSING IMPROVEMENTS THE END RESULT THE ALDERMEN ENDED UP DIVVYING UP THE MONEY EQUALLY RESULTING IN A PIDDLING 163000 FOR EACH WARD YOU CAN'T DO ANYTHING OF ANY SIGNIFICANCE WITH IT JANET BECKER A LONGTIME HOUSING ADVOCATE IN ST LOUIS SAYS IN DISGUST NOW CITY OFFICIALS WONDER HOW THE ALDERMEN WILL HANDLE THE ADDITIONAL 15 MILLION THE CITY IS SLATED TO GET UNDER THE PRESIDENT'S PROPOSED STIMULUS PACKAGE SUPPORTERS OF THE GRANT PROGRAM WHICH WAS CREATED IN 1974 TO CONSOLIDATE COMPLEX AND OVERLAPPING PROGRAMS SAY SUCH PROBLEMS ARE ISOLATED AND THE CRITICISM OVERBLOWN ONE CAN WITH ANY GOVERNMENT PROGRAM FIND EXCEPTIONS THAT LEAD TO CONCLUSIONS THAT IT'S NOT PERFECT SAYS SECRETARY CISNEROS BUT HE INSISTS THE BLOCKGRANT PROGRAM IS ON THE WHOLE EXCELLENT AND REMAINS THE BEST VEHICLE TO CARRYING OUT A CRITICAL SOCIETAL NEED WHICH IS TO ENABLE JOBCREATING MACHINERY TO REACH THE POOREST THE ADMINISTRATION ESTIMATES THAT THE PRESIDENT'S ADDITIONAL PROPOSED SPENDING WOULD CREATE 55000 TO 60000 JOBS REGINALD TODD CHIEF EXECUTIVE OFFICER OF THE NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION ARGUES THAT THE PROGRAM'S FLEXIBILITY ALLOWS LOCAL OFFICIALS TO RESPOND TO THE MOST PRESSING LOCAL NEEDS HIS GROUP CITES AS RECENT WORTHWHILE PROJECTS THE PURCHASE OF A FACILITY IN DALLAS FOR CHILDABUSE VICTIMS CONSTRUCTION OF A VOCATIONALTRAINING BUILDING IN LAS VEGAS FOR THE LOWINCOME DISABLED AND THE CONVERSION OF A SCHOOL IN TORRINGTON CONN INTO COOPERATIVE APARTMENTS FOR VERY POOR THE BLOCKGRANT PROGRAM HAS TWO FEATURES DESIGNED TO HELP LOWERINCOME PEOPLE FIRST THE BULK OF THE PROGRAM IS DISTRIBUTED THROUGH A FORMULA THAT INCLUDES POVERTY INDICATORS SECOND THE LAW REQUIRES THAT 70 OF THE FUNDS SPENT BE USED TO HELP PEOPLE WITH LOW TO MODERATE INCOMES HUD ESTIMATES THAT THE ACTUAL FIGURE IS 90 BUT CRITICS CHARGE THAT THE LOWERINCOME REQUIREMENTS ARE SO LOOSE AND HUD MONITORING IS SO LAX IN PART BECAUSE CONGRESS ELIMINATED FRONTEND REVIEW OF PROJECTS IN 1981 THAT POOR PEOPLE DON'T BENEFIT NEARLY AS MUCH FROM THE PROGRAM AS ADVERTISED EVEN MR CLINTON'S OWN HUD TRANSITION TEAM NOTED THAT AUDITORS FOR THE DEPARTMENT'S INSPECTOR GENERAL HAVE CONSISTENTLY FOUND THAT BLOCKGRANT ACTIVITIES DO NOT PROVIDE BENEFITS TO LOWANDMODERATE INCOME RESIDENTS AS REQUIRED THE DEPARTMENT'S INSPECTOR GENERAL HAS RECOMMENDED THAT THE ENTIRE PROGRAM BE CLASSIFIED AS A MATERIAL WEAKNESS MEANING THAT HUD CAN'T BE SURE THE MONEY IS BEING SPENT PROPERLY BUT THE DEPARTMENT'S MANAGERS HAVE REJECTED THE RECOMMENDATION CHRIS GREER AN ASSISTANT INSPECTOR GENERAL FOR AUDIT AT HUD SAYS THAT SOME CITIES DO GREAT THINGS WITH THE MONEY BUT OTHERS MISUSE OR MISMANAGE THE MONEY IN 1991 CONGRESSIONAL INVESTIGATORS DISCOVERED THAT THE CITY OF TROY NY LOANED A GROUP OF LOCAL INVESTORS MONEY TO BUY A MINORLEAGUE HOCKEY TEAM THE CITY REPAID THE MONEY AT THE DEPARTMENT'S INSISTENCE KAREN STOKES EXECUTIVE DIRECTOR OF THE COALITION FOR LOWINCOME COMMUNITY DEVELOPMENT WHICH REPRESENTS OVER 800 GRASSROOTS ORGANIZATIONS INTERESTED IN THE BLOCKGRANT PROGRAM SUPPORTS THE PROGRAM BUT WANTS IT RETOOLED TO BETTER HELP THE POOR CURRENTLY SHE SAYS CITIES WILL USE DATA FROM THE ENTIRE METROPOLITAN AREA TO DETERMINE MEDIAN INCOME THE RESULT IS THAT IN BALTIMORE FOR ONE PLACE PEOPLE MAKING 44000 ARE CONSIDERED MODERATEINCOME BUT MR TODD OF THE NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION ARGUES THAT ALTHOUGH IT'S IMPORTANT TO HELP THE VERY LOWINCOME IT'S EQUALLY CRUCIAL TO STABILIZE RELATIVELY BETTEROFF NEIGHBORHOODS THAT MAY BE ON THE VERGE OF DETERIORATING AND HE AND MR CISNEROS ARGUE THAT ADDING A LOT OF NEW RULES TO THE PROGRAM WOULD ONLY BOG IT DOWN ADVOCATES FOR THE POOR ALSO WORRY THAT IN THE RUSH TO GET NEW MONEY SPENT BY THE END OF NEXT YEAR THE ADMINISTRATION MAY TEMPORARILY WAIVE THE 70 REQUIREMENT EVEN THOUGH MR CISNEROS HAS SAID HE WON'T DO THAT MEANWHILE DEBATES ON HOW TO USE ANY NEW MONEY ARE ALREADY HEATING UP IN SEVERAL CITIES IN SCRANTON PA HOUSING ADVOCATES ARE PUSHING THE CITY TO SPEND A MUCH BIGGER CHUNK OF BLOCKGRANT FUNDS ON HOUSING LAST YEAR THE CITY SPENT ONLY A SMALL PORTION ON HOUSING DESPITE THE AREA'S GREAT NEEDS ACCORDING TO DAWN BRENNAN EXECUTIVE DIRECTOR OF THE UNITED NEIGHBORHOOD CENTERS OF LACKAWANNA COUNTY BUT MICHAEL WASHO DIRECTOR OF THE CITY'S OFFICE OF ECONOMIC AND COMMUNITY DEVELOPMENT SAYS THE CITY IS USING OTHER FEDERAL HOUSING PROGRAMS EXTENSIVELY IN SIOUX CITY IOWA SOME RESIDENTS ARE UNHAPPY THAT THE CITY HAS USED A PROVISION OF THE PROGRAM TO BORROW 600000 AGAINST ITS BLOCK GRANTS THE PURPOSE TO LEND THE MONEY TO A DEVELOPER IN ORDER TO BUY A BARGE TO USE AS A SUPPORT VESSEL WITH BANQUET AND TICKET FACILITIES FOR A GAMBLING BOAT DOCKED IN THE MISSOURI RIVER THE CITY CONTENDS THAT THE EXPENDITURE IS JUSTIFIED BECAUSE IT WILL CREATE 120 FULLTIME AND PARTTIME JOBS WHEN IT'S IN FULL OPERATION WHAT COMMUNITYDEVELOPMENT BLOCK GRANT FUNDS ARE SPENT ON 9303160090 930316 XOMA BEGINS TRIALS OF PROTEIN BERKELEY CALIF XOMA CORP A BIOTECHNOLOGY COMPANY SAID IT BEGAN HUMAN CLINICAL TRIALS OF AN ACTIVE HUMAN PROTEIN CALLED BPI WHICH COULD BE OF VALUE IN TREATING VARIOUS ILLNESSES 9303160089 930316 LEISURE & ARTS SEARCH FOR MISSING TREASURES AND GERMAN IDENTITY BY DEBRA JO IMMERGUT BERLIN BERLIN'S MUSEUM CURATORS ARE IN THE FOREFRONT OF THE CURRENT NATIONAL SEARCH FOR A GERMAN IDENTITY THEY ARE ATTEMPTING TO REASSEMBLE THE MILLIONPIECE PUZZLE OF GERMANY'S SHATTERED CULTURE BROKEN APART BY THE NATION'S OWN MISDEEDS IN WORLD WAR II AND SCATTERED TO THE WINDS DURING THE OCCUPATION THAT FOLLOWED THE MUSEUM WORKERS HAVE LATELY BEEN INTENSIFYING THEIR SEARCH FOR CULTURAL MATERIALS LOST OR STOLEN FROM THE CAPITAL CITY AT THE END OF THE WAR THOUGH THEIR TALES MAY HAVE INDIANA JONESSTYLE PLOT TWISTS MUCH MORE IS AT STAKE THAN MERE MISSING TREASURES AT EASTERN BERLIN'S MARKISCHES MUSEUM WHICH SPECIALIZES IN LOCAL HISTORY THE STAFF IS STILL JUBILANT AT THE RETURN OF A LARGE PART OF THE KABLOW FIND 83 CRATES OF MATERIAL FROM AN ARCHAEOLOGICAL DIG AT A FIRSTCENTURY GERMANIC VILLAGE IN THE CITY'S FAR SOUTHEASTERN CORNER IT WAS NATURALLY A TERRIBLY EXCITING DEVELOPMENT THAT THE COLLECTION SUDDENLY SURFACED SAYS THE MUSEUM'S CHIEF OF ARCHAEOLOGICAL COLLECTIONS HEINZ SEYER EVERYONE THOUGHT IT WAS LOST IN 1990 SHORTLY AFTER A GERMAN ARCHAEOLOGIST ON A STUDY TOUR NOTIFIED THEM THAT HE'D BEEN SHOWN THE CRATES OF POTTERY TOOLS AND OTHER KABLOW FIND ITEMS IN A STORAGE ROOM OF THE LATVIAN HISTORICAL MUSEUM IN RIGA MR SEYER AND KLAUS GOLDMANN HEAD CURATOR OF THE WESTERN BERLIN MUSEUM FOR PRE AND EARLY HISTORY WENT TO SEE FOR THEMSELVES THEY WERE STUNNED THE ITEMS WERE MORE OR LESS UNTOUCHED IN THE ORIGINAL PACKING FROM THE WAR ERA THE CRATES THEMSELVES SHOULD BE EXHIBITED IN A MUSEUM MARVELS MR SEYER THE CRATES AND THEIR CONTENTS LOST IN THE BLOODY SHUFFLE OF HITLER'S WAR MIGHT NEVER HAVE BEEN DUG UP IN THE FIRST PLACE BEGINNING IN 1937 IF IT HADN'T BEEN FOR NAZI GERMANOMANIA IN THE NAZI TIMES NOTES MR GOLDMANN YOU COULD GET MUCH MONEY EXCAVATING ON GERMANIC QUESTIONS DIGS AT GERMANIC SITES WERE SOMETIMES EVEN CARRIED OUT UNDER SS SUPERVISION WITH THE DIG WORKERS IN SS UNIFORMS THE KABLOW EXCAVATION WAS SPONSORED BY THE MARKISCHES MUSEUM BUT HAD SPECIAL IMPORTANCE TO THE NAZIS SAYS MR SEYER BECAUSE OF ITS PROXIMITY TO THE CAPITAL OF THE THIRD REICH IN 1942 THE URGENCIES OF WAR PUT A HALT TO ALL DIGGING AT THE SITE AND THE OBJECTS STILL UNASSESSED BY THE PROJECT'S ARCHAEOLOGISTS WERE PACKED INTO CRATES AND SHIPPED FIRST TO A GERMANHELD CASTLE IN SILESIA NOW PART OF POLAND THEN AS THE RED ARMY ADVANCED ON THE CASTLE IN 1945 THEY WERE WHISKED AWAY TO THE CZECH TOWN OF OPAVA WHERE THE NOTORIOUS NAZI REICHSMINISTER ALFRED ROSENBERG RAN A COLLECTION CENTER FOR CULTURAL TREASURES EVACUATED FROM GERMANY AND PLUNDERED FROM CONQUERED TERRITORIES EVENTUALLY THE RUSSIANS SEIZED OPAVA AND THE ODYSSEY OF THE KABLOW CRATES CONTINUED IN SECRET THE CRATES THAT ENDED UP IN RIGA MAY HAVE BEEN INCLUDED BY INTENTION OR ACCIDENT IN A RETURN SHIPMENT OF THAT CITY'S LOOTED ARTWORKS ANOTHER PART OF THE FIND SURFACED IN WROCLAW THE SILESIAN CITY GERMANS STILL CALL BRESLAU WAS RETURNED BY THE POLES TO THE EAST GERMAN GOVERNMENT IN THE LATE 1960S AND INSTALLED IN THE MARKISCHES MUSEUM THE FINAL BIT CAME TO LIGHT LAST YEAR IN THE UKRAINIAN CAPITAL OF KIEV NO ONE HAS A CLUE HOW IT GOT THERE THE RIGA CRATES ARRIVED BACK IN BERLIN IN JANUARY AND WENT STRAIGHT TO THE RESTORATION WORKSHOP IT WAS NOT EXACTLY HANDED OVER IN IDEAL CONDITION SAYS MR SEYER RUST HAS SEVERELY DAMAGED SEVERAL IMPORTANT PIECES INCLUDING A BELL THAT PROVES THE SETTLEMENT HAD EXTENSIVE TRADE WITH THE ROMANS THE KABLOW CRATES THAT WOUND UP IN KIEV ARE EXPECTED IN BERLIN WITHIN THE NEXT FEW MONTHS THE REUNITED HOARD WILL BE GIVEN A SPECIAL SHOWING AT THE MARKISCHES MUSEUM PERHAPS IN LATE MAY OR JUNE THEN AFTER 51 YEARS THE SHARDS AND METAL FRAGMENTS WILL AT LAST RECEIVE A SCHOLARLY ASSESSMENT IT WILL SIGNAL IN SOME SENSE A REEMERGENCE OF GERMANIC STUDIES IN EASTERN BERLIN THE SUBJECT WAS DISAPPROVED OF BY THE COMMUNIST GOVERNMENT EVEN NOW THERE IS THE POTENTIAL FOR AN IDEOLOGICAL STRUGGLE OVER THE MEANING OF GERMAN ARCHAEOLOGICAL FINDS AS MR SEYER SEES IT THE IDEA OF THE GERMANIC TRIBES AS A DOMINANT PEOPLE WHO DISPLAY SOMETHING BETTER THAN THE RUSSIANS OR SLAVS THAT NATURALLY STILL HAS AN EFFECT TODAY SAYS SEYER ONE MUST BE TERRIBLY CAREFUL WHEN WORKING WITH THESE ISSUES THE PIECES THEMSELVES ARE OFTEN IN THE HANDS OF FORMER VICTIMS NOT EAGER TO RELINQUISH BOOTY THAT MIGHT REDOUND TO THE GREATER GLORY OF THE GERMAN HERITAGE PIECING GERMAN CULTURE BACK TOGETHER CONTINUES TO REQUIRE LONG AND PAINSTAKING NEGOTIATIONS WITH THE GOVERNMENTS OF THE FORMER SOVIET REPUBLICS FOR THE RETURN OF MILLIONS OF BOOKS FROM PRUSSIAN STATE LIBRARIES AND OF COUNTLESS ARTWORKS FROM PRUSSIAN MUSEUMS SO THE LATVIAN REGIME'S RETURN OF ITS PORTION OF THE KABLOW FIND HOWEVER MODEST ITS VALUE MAY TURN OUT TO BE IS BEING TAKEN HERE AS A WELCOME SIGNAL THAT MORE WILL BE FORTHCOMING NOT ALL OF IT HOWEVER WILL BE MOVING FROM EAST TO WEST THE SIGN OF THAT A REMINDER THAT THE SOVIETS WERE NOT THE ONLY CONQUERING ARMY TO CARRY HOME GERMAN SPOILS IS AN EXHIBIT AT BERLIN'S MUSEUM OF APPLIED ART KUNSTGEWERBEMUSEUM UP THROUGH MAY 30 THE QUEDLINBURG TREASURE REUNITED DISPLAYS THE NOW NEARLY REUNIFIED COLLECTION OF RICHES FROM THE 10THCENTURY ST SERVATIUS CHURCH IN THE EASTERN GERMAN STATE OF SAXONYANHALT SHOWN TOGETHER FOR THE FIRST TIME SINCE THE WAR'S START IN 1939 ARE THE PIECES THAT STAYED IN THE CHURCH'S TREASURY AS WELL AS PIECES THAT IN 1945 TRAVELED BY UNMARKED SHIPPING CRATE TO THE TEXAS HOME OF US ARMY SGT JOE TOM MEADOR TWO OF THE LOOTED OBJECTS A ROCKCRYSTAL RELIQUARY AND AN ENAMELED RELIQUARY CROSS ARE STILL MISSING IN THE US HAVING BEEN GIVEN AS GIFTS BY MEADOR TO PERSONS UNKNOWN THE TREASURES A DAZZLING ASSORTMENT OF RITUAL EQUIPMENT NUMBER MORE THAN 50 WITH THE MOST OUTSTANDING BEING THE SAMUHELEVANGELIAR A HOLY BOOK COVERED WITH SILVER FILIGREE ENCRUSTED WITH PRECIOUS STONES COLORED GLASS MOTHEROFPEARL AND PEARLS AND BEARING A SILVER RELIEF OF SAINTS AND THE MADONNA THE GERMANS PAID 3 MILLION FOR IT IN 1989 TO A GERMAN ANTIQUES DEALER SERVING AS A MIDDLEMAN IT WAS THE FIRST LINK IN A CHAIN THAT EVENTUALLY LED TO MEMBERS OF MEADOR'S FAMILY WHO'D BEEN TRYING TO PEDDLE THE REMAINING TREASURES THE ENSUING LEGAL MELEE WAS WIDELY REPORTED AND THOUGH THE BULK OF THE COLLECTION IS NOW BACK ON GERMAN SOIL A SENSE OF AN INJUSTICE DONE LINGERS AMONG MUSEUM PEOPLE HERE CULTURAL GOODS THAT HAVE ENDED UP IN THE US OFTEN MUST BE BOUGHT BACK ON THE OPEN MARKET THEY SAY CRIMINALS WILL GET THE MONEY COMPLAINS MR GOLDMANN OF THE MUSEUM FOR PRE AND EARLY HISTORY AND NOW WE WANT TO HAVE EVERYTHING BACK FROM THE RUSSIANS WITHOUT PAYING ONE MARK WHETHER THEY BUY BACK THEIR RANSOMED CULTURE OR GET IT FOR FREE HIGHERUPS AT THE BERLIN MUSEUMS ARE DETERMINED TO RESTORE THEIR COLLECTIONS TO THEIR PREWAR LUSTER TO PUT BEHIND THEM THE LONG YEARS OF SILENCE AND REPARATION IN KIND FOR THEIR FORMER OPPONENTS' LOSSES THE FOUNDATION FOR PRUSSIAN CULTURAL POSSESSIONS THE UMBRELLA AGENCY FOR THE CITY'S MAJOR MUSEUMS HAS DRAWN UP A SWEEPING CONSOLIDATION PLAN FOR EASTERN AND WESTERN BERLIN COLLECTIONS WITH PROVISIONS MADE FOR WHATEVER ART AND HISTORICAL TREASURES ARE YET TO BE RETRIEVED FROM FAR CORNERS OF THE GLOBE BY 2003 WHEN IT HOPES ITS PLAN WILL BE FULLY REALIZED EVERYONE SHOULD HAVE A CLEARER PICTURE OF THE GERMAN SOUL MS IMMERGUT IS A FREELANCE WRITER IN BERLIN 9303160087 930316 LEISURE & ARTS BUSINESS BOOKSHELF KIDS WITH PORTFOLIOS BY STANLEY W ANGRIST ARE YOU LOOKING FOR A GROUP OF TOUGH HOT MONEY MANAGERS WHO CAN MAKE YOUR SAVINGS GROW SKY HIGH THE WIZARDLY PETER LYNCH WHO GUIDED THE MAGELLAN FUND TO MINDBOGGLING RETURNS OVER 13 YEARS SAYS YOU MAY BE LOOKING IN THE WRONG PLACES HAVE YOU SPOKEN TO YOUR CHILD LATELY IN BEATING THE STREET SIMON & SCHUSTER 318 PAGES 23 WRITTEN WITH JOHN ROTHCHILD MR LYNCH SAYS HE FOUND A TERRIFIC BUNCH OF STOCK PICKERS IN THE SEVENTHGRADE CLASS OF ST AGNES SCHOOL IN ARLINGTON MASS THESE URCHINS WERE DEPLOYED BY TEACHER JOAN MORRISSEY TO TEST HER THEORY THAT YOU DON'T NEED PRICE QUOTATION EQUIPMENT OR A WHARTON MBA OR FOR THAT MATTER EVEN A DRIVER'S LICENSE TO EXCEL IN EQUITIES THE ST AGNES' MODEL PORTFOLIO PRODUCED A 70 GAIN OVER TWO YEARS OUTPERFORMING THE S&P 500 WHICH GAINED 26 IN THE SAME PERIOD BY A WHOPPING MARGIN ST AGNES ALSO OUTPERFORMED 99 OF THE EQUITY MUTUAL FUNDS WHOSE MANAGERS ARE PAID CONSIDERABLE SUMS FOR THEIR EXPERT SELECTIONS WHEREAS THE YOUNGSTERS ARE HAPPY TO SETTLE FOR A FREE BREAKFAST WITH THE TEACHER AND A MOVIE MR LYNCH BECAME AWARE OF ST AGNES WHEN THE KIDS SENT HIM A LARGE SCRAPBOOK THAT LISTED THEIR TOPRATED SELECTIONS WITH PICTURES THIS LEAD THE AUTHOR TO PETER PRINCIPLE 3 OUT OF THE 20 GIVEN IN THE BOOK NEVER INVEST IN ANY IDEA YOU CAN'T ILLUSTRATE WITH A CRAYON THE FIRST THING MS MORRISSEY HAD TAUGHT THE KIDS WHEN PICKING STOCKS IS THAT YOU ONLY BUY WHAT YOU KNOW SO THEY PICKED PENTECH INTERNATIONAL WHICH MAKES THEIR FAVORITE COLORED PENS AND MARKERS NOT LONG AFTER THEY ADDED IT TO THEIR PORTFOLIO IT WENT FROM 5 TO 9 1/2 THE 1990 ST AGNES FUND MANAGERS ALSO SELECTED WALT DISNEY CO TWO SNEAKER MANUFACTURERS NIKE INC AND LA GEAR INC GAP INC AND PEPSICO INC WHICH THEY KNOW FOUR WAYS PEPSICOLA PIZZA HUT KENTUCKY FRIED CHICKEN AND FRITOLAY THEIR ONLY CLUNKER WAS INTERNATIONAL BUSINESS MACHINES CORP WHICH A LOT OF PROFESSIONAL MONEY MANAGERS INCLUDING MR LYNCH ALSO SELECTED TO THEIR REGRET IN ADDITION TO THE ST AGNES MONEY MANAGERS WORTH THE BOOK'S COST MR LYNCH DESCRIBES SOME INVESTMENT TECHNIQUES HE HAS USED OVER THE YEARS FOR EXAMPLE HE CITES HIS DIVIDEND STRATEGY BASED ON MOODY'S HANDBOOK OF DIVIDEND ACHIEVERS WHICH LISTS 134 COMPANIES THAT HAVE AN UNBROKEN 20YEAR RECORD OF INCREASING THEIR DIVIDEND EVERY YEAR AND ANOTHER 362 THAT HAVE A 10YEAR RECORD MR LYNCH SAYS YOU CAN SUCCEED ON WALL STREET BY SIMPLY BUYING THOSE STOCKS AND STICKING WITH THEM AS LONG AS THEY STAY ON THE LIST NOT SURPRISINGLY MR LYNCH IS A BIG BELIEVER IN STOCKS AS LONGTERM INVESTMENTS OVER BONDS HOWEVER THERE IS ONE SITUATION THAT PROMPTS HIM INTO BONDS WHEN YIELDS ON LONGTERM GOVERNMENT BONDS EXCEED THE DIVIDEND YIELD OF THE S&P 500 BY 6 OR MORE CURRENTLY THE DIFFERENCE IS ABOUT 42 MR LYNCH CONCLUDES WITH 20 GOLDEN RULES OF INVESTING THAT SHOULD PROVIDE ENCOURAGEMENT TO PARTTIME INVESTORS EVERYWHERE TWO THAT I FOUND PARTICULARLY RELEVANT ARE YOU HAVE TO KNOW WHAT YOU OWN AND WHY YOU OWN IT THIS BABY IS A CINCH TO GO UP IS NOT GOOD ENOUGH THE SECOND IS IN EVERY INDUSTRY AND REGION OF THE COUNTRY THE OBSERVANT AMATEUR CAN FIND GREAT GROWTH COMPANIES LONG BEFORE THE PROFESSIONALS HAVE DISCOVERED THEM NEW MARKETS GET STARTED IN A VARIETY OF WAYS SOME PEOPLE BELIEVE THAT THE INTERNATIONAL MONETARY MARKET AT THE CHICAGO MERCANTILE EXCHANGE CAME INTO BEING BECAUSE MILTON FRIEDMAN NOW A NOBEL LAUREATE WANTED TO SHORT THE BRITISH POUND IN 1967 AND COULDN'T FIND A BANK IN CHICAGO TO TAKE HIS ORDER BECAUSE HE WASN'T A COMMERCIAL CUSTOMER MR FRIEDMAN WENT ON TO WRITE A PAPER IN 1971 ARGUING THE NEED FOR A PUBLIC FUTURES MARKET IN CURRENCIES IT PROVIDED A THEORETICAL FOUNDATION FOR LEO MELAMED'S EFFORTS TO CREATE SUCH A MARKET AND SLOWLY TURN HIMSELF INTO THE FATHER OF FINANCIAL FUTURES LEO MELAMED ON THE MARKETS WILEY 278 PAGES 2995 IS A COLLECTION OF TALKS AND PAPERS THAT ARE BELIEVE ME NOT DULL READING FOR ANYONE WHO HAS AN INTEREST IN THE HISTORY OF THIS COUNTRY'S DERIVATIVES MARKETS HOW ARCANE ARE THESE ELUSIVE INSTRUMENTS TRADED BY THE THOUSANDS IN CHICAGO WELL IN ONE TALK THE AUTHOR TRIES TO EDUCATE MEMBERS OF CONGRESS AND THEIR STAFFS ON THE TECHNIQUE OF SPREADING FUTURES CONTRACTS USUALLY BUYING ONE CONTRACT MONTH WHILE SIMULTANEOUSLY SELLING ANOTHER BECAUSE SOME OF THEM WERE INTERESTED IN ELIMINATING THE TAX STRADDLE A STRATEGY FREQUENTLY USED BY TRADERS TO DEFER TAXES SEN PATRICK MOYNIHAN COMMENTED THAT UNTIL THE ISSUE HAD ARISEN IN CONGRESS HE HAD THOUGHT THAT A BUTTERFLY STRADDLE MUST REFER TO A HIGHLY PLEASURABLE EROTIC ACTIVITY POPULAR DURING THE MING DYNASTY THOSE WHO DO NOT YET POSSESS THE SKILLS OF THE ST AGNES KIDS AND WHO WOULDN'T KNOW A FUTURES CONTRACT IF ONE SAT DOWN NEXT TO THEM AND PULLED A GUN MIGHT BEGIN THEIR EDUCATION WITH SAFE SEX ON WALL STREET CONTEMPORARY BOOKS 136 PAGES 695 BY VAN WILLIAM KNOX III AND PETER DE ANGELIS THEY COMPARE WHAT TAKES PLACE ON WALL STREET TO VARIOUS ASPECTS OF SEX AS THEY MOVE SLOWLY FROM OGLING BALANCE SHEETS AND INCOME STATEMENTS TO STOPLOSS ORDERS BUYING INDEX PUTS AND CALLS SELLING COVERED CALLS AND NAKED YES PUTS AND SHORT SELLING THEY DON'T NECESSARILY ADVOCATE THESE STRATEGIES BUT THEY FEEL THAT EVEN STUFFED SHIRTS SHOULD KNOW WHAT THEY ARE USED FOR AND THEIR RISKS AND REWARDS 9303160086 930316 MARKETING & MEDIA ABC'S ARLEDGE IS IN TALKS WITH NBC OVER NEWS POST NEW YORK ABC NEWS PRESIDENT ROONE ARLEDGE HAS HELD TALKS WITH EXECUTIVES AT RIVAL NBC ABOUT BECOMING PRESIDENT OF ITS EMBATTLED NEWS DIVISION THE JOB WAS LEFT VACANT WHEN MICHAEL GARTNER RESIGNED MARCH 2 IN THE WAKE OF THE FIASCO OVER THE STAGING OF CARCRASH FOOTAGE ON NBC'S DATELINE NEWSMAGAZINE AMONG THOSE WOOING MR ARLEDGE 61 YEARS OLD IS JOHN F WELCH JR CHAIRMAN OF NBC PARENT GENERAL ELECTRIC CO AND A LONGTIME FRIEND OF MR ARLEDGE ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION IT IS UNCLEAR WHETHER NBC APPROACHED MR ARLEDGE WHO IS IN CONTRACT DISCUSSIONS AT ABC OR VICE VERSA BUT THE TALKS UNDERSCORE NBC'S INTEREST IN FINDING A NEWS PRESIDENT WHO HAS IMPECCABLE JOURNALISTIC CREDENTIALS AS WELL AS A BACKGROUND IN TELEVISION AT CAPITAL CITIES/ABC INC'S NEWS DIVISION MR ARLEDGE HAS BUILT WHAT WAS AN ALSORAN OPERATION INTO A FORMIDABLE FORCE IN HIS 25 YEARS THERE HIS LONG TENURE AND HIS ENORMOUS SUCCESS THERE MAKE IT UNCLEAR WHETHER THE TELEVISION EXECUTIVE WOULD LEAVE ABC NEWS MR ARLEDGE BUILT ABC NEWS BY COMBINING HIS PRODUCING SKILLS WITH AN EYE FOR TALENT LURING A NUMBER OF STAR ANCHORS AND REPORTERS WITH LARGE SALARIES THAT APPROACH SEEMS INCONGRUOUS WITH THE BUDGETCONSCIOUS PHILOSOPHY OF NBC NBC DECLINED TO COMMENT ON ANY POTENTIAL CANDIDATES FOR THE NEWS DIVISION JOB AN ABC NEWS SPOKESWOMAN SAID MR ARLEDGE WASN'T AVAILABLE FOR COMMENT 9303160085 930316 WHO'S NEWS WILLIAMS COS BROADENS RESPONSIBILITIES FOR 2 IN ENERGY REVAMPING TULSA OKLA WILLIAMS COS ANNOUNCED A REORGANIZATION OF ITS ENERGY BUSINESSES AND BROADENED THE RESPONSIBILITIES OF TWO EXECUTIVES MOST OF THE CHANGES WILL TAKE EFFECT APRIL 1 WILLIAMS WILL COMBINE ITS TWO INTERSTATE NATURAL GAS PIPELINE SYSTEMS WILLIAMS NATURAL GAS AND NORTHWEST PIPELINE INTO ONE UNIT FOR PUBLIC REPORTING PURPOSES THE COMPANY'S WILLIAMS FIELD SERVICES UNIT CURRENTLY PART OF WILLIAMS WESTERN GROUP IN SALT LAKE CITY WILL BECOME A SEPARATE UNIT AND RELOCATE TO TULSA LLOYD A HIGHTOWER A 58YEAROLD SENIOR VICE PRESIDENT AND GENERAL MANAGER WILL BE THE UNIT'S PRESIDENT ANOTHER UNIT WILLIAMS ENERGY WILL HAVE MOST OF ITS ACTIVITIES ASSIGNED TO OTHER OPERATING COMPANIES AND CEASE OPERATING IN ITS CURRENT FORM BRIAN E O'NEILL PRESIDENT OF WILLIAMS NATURAL GAS WILL BE RESPONSIBLE FOR THE ENERGY PLANNING ASSIGNED TO WILLIAMS NATURAL GAS AND THE 57YEAROLD EXECUTIVE WILL ALSO HEAD THE COMPANY'S INTERSTATE NATURAL GAS PIPELINES THAT RESPONSIBILITY WAS HELD BY ROBERT W KEENER WHO ANNOUNCED THAT HE WILL RETIRE AT YEAR END 9303160084 930316 INDUSTRY FOCUS CANADA'S TOP BREWERS DRAFT WAYS TO FIGHT NEW RIVALS MOLSON LABATT ADOPT DIFFERENT TACTICS AS TRADE BARRIERS WITH US FALL BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL CANADA'S TWO DOMINANT BREWERS HAVE LONG BATTLED EACH OTHER FOR EVERY DROP OF THE COUNTRY'S SHRINKING BEER MARKET NOW AS FALLING TRADE BARRIERS WITH THE US PROMISE TO BRING EVEN MORE COMPETITION INTO THE MARKET MOLSON BREWERIES AND JOHN LABATT LTD HAVE ADOPTED DARING BUT DIFFERENT STRATEGIES TO KEEP BEER SALES AND PROFITS BUBBLING MARKET LEADER MOLSON A JOINT VENTURE OF MOLSON COS MONTREAL AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA IS COUNTING ON AT LEAST QUADRUPLING ITS SALES IN THE TOUGH US BEER MARKET WITH THE HELP OF A RECENT PARTNERSHIP AGREEMENT WITH MILLER BREWING CO OF MILWAUKEE ON THE OTHER HAND LABATT BASED IN LONDON ONTARIO IS GOING AFTER A LARGER PIECE OF THE PIE AT HOME CANADA'S NO 2 BREWER IS SHEDDING MOST OF ITS NONBEER RELATED BUSINESSES TO CONCENTRATE ON A HEADTOHEAD FIGHT WITH MOLSON FOR THE DWINDLING CANADIAN MARKET UNLIKE IN THE US WHERE BEER SALES HAVE BEEN STEADY FOR A DECADE SALES IN CANADA FELL IN EACH OF THE PAST FIVE YEARS AS CONSUMERS RECOILED FROM THE COUNTRY'S HIGH TAXES ON BEER SALES BY MOLSON AND LABATT WHICH TOGETHER ACCOUNT FOR MORE THAN 90 OF THE MARKET WILL CONTINUE TO DROP SAYS MARSHALL COHEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MOLSON COS AND NONEXECUTIVE CHAIRMAN OF MOLSON BREWERIES AS THE CANADA/US BORDER OPENS UP AND IT'S ONLY A MATTER OF TIME BEFORE IT DOES THERE WILL BE A SURGE OF US IMPORTS INTO CANADA IT'S NOT ONLY A MATTER OF VOLUME LOSS FOR US IT'S A MATTER OF MARGIN LOSS AS WE HAVE TO COMPETE WITH CHEAPER BEERS HE SAYS CANADA'S BEER INDUSTRY IS PROTECTED BY REGULATIONS THAT KEEP RETAIL PRICES AND DOMESTIC BREWERS' PROFITS HIGH AND FOREIGN COMPETITION LOW DISMANTLING SOME OF THESE TRADE BARRIERS IS SCHEDULED TO BEGIN LATER THIS YEAR IT'S A LITTLE EASIER TO IMPORT BEER INTO RUSSIA TODAY EXCEPT THEY HAVEN'T GOT ANY MONEY SAYS RANDY SMITH A VICE PRESIDENT AT G HEILEMAN BREWING CO LA CROSSE WIS RIGHT NOW US IMPORTS REPRESENT ABOUT 3 OF THE 76 BILLION CANADIAN BEER MARKET US BREWING EXECUTIVES FEEL THEY CAN REACH 10 TO 20 OF THE MARKET AS TRADE BARRIERS FALL SEVERAL MAJOR US BEER BRANDS ALREADY ARE SOLD IN CANADA BEING PRODUCED UNDER LICENSE BY EITHER MOLSON OR LABATT FREER TRADE WILL BENEFIT MOSTLY US BEERS THAT AREN'T MANUFACTURED UNDER THESE ARRANGEMENTS AND CURRENTLY ARE IMPORTED BREWERS SUCH AS HEILEMAN AND STROH BREWERY CO OF DETROIT BELIEVE THEY CAN WIN OVER MORE CANADIAN CONSUMERS BY OFFERING LOWER PRICES WITH NEW COMPETITIVE PRESSURES LOOMING MOLSON AND LABATT ARE PURSUING SOME SIMILAR GOALS TO CUT COSTS AND GIVE A QUICK BOOST TO PROFIT MARGINS THE COMPANIES RECENTLY ADOPTED AN INDUSTRY STANDARD FOR THE REFILLABLE BOTTLE CANADA'S FAVORITE BEER CONTAINER WHICH COULD SAVE THE BREWERS TOGETHER 80 MILLION A YEAR AND BOTH HAVE REORGANIZED THEIR OPERATIONS BY CLOSING BREWERIES AND CUTTING STAFF IN THE LONGER TERM HOWEVER MOLSON AND LABATT MUST SELL MORE BEER FOR MOLSON THE PACT WITH MILLER SOLVED THE CANADIAN'S DILEMMA OF HOW TO FINANCE A BIG MARKETING PUSH IN THE US AT AN ESTIMATED COST OF AS MUCH AS 100 MILLION A YEAR MILLER A UNIT OF PHILIP MORRIS COS WAS A LOGICAL PARTNER AS ITS BEERS ALREADY ARE BREWED BY MOLSON FOR SALE IN CANADA AND MILLER NEEDED ANOTHER SUPERPREMIUM BEER LIKE THE FLAGSHIP MOLSON GOLDEN BRAND TO ROUND OUT ITS OWN STABLE OF BRANDS IN THE US WITH ABOUT 22 OF THE US MARKET MILLER IS SECOND TO ANHEUSERBUSCH INC WITH 45 THE PACT WHICH IS SUBJECT TO REGULATORY APPROVAL GIVES MILLER AN EXCLUSIVE LICENSE TO MARKET MOLSON'S BRANDS IN THE US IN EXCHANGE FOR PAYING MOLSON A ROYALTY ON SALES MILLER ALSO PAID 281 MILLION FOR A 20 STAKE IN MOLSON BREWERIES WHICH WILL LEAVE MOLSON COS AND FOSTER'S BREWING EACH HOLDING 40 WE EXPECT MILLER TO TURN MOLSON INTO A MAJOR BRAND IN THE US TOTAL DOMESTIC MARKET SO FAR WE HAVE BEEN SELLING INTO THE IMPORT MARKET THAT'S A SMALL PART OF THE TOTAL US BEER MARKET MR COHEN SAYS WITHIN FIVE YEARS HE EXPECTS MOLSON'S 08 MARKET SHARE WILL SOAR TO BETWEEN 3 AND 5 TO PUT THAT IN PERSPECTIVE REACHING A 5 MARKET SHARE WOULD REQUIRE MOLSON TO DOUBLE ITS CURRENT PRODUCTION CAPACITY THAT'S AN AMBITIOUS UNDERTAKING THEY'RE GOING TO HAVE REALLY TO GET VOLUME FROM OTHER IMPORTS WHICH TOGETHER HAVE ABOUT 4 OF THE MARKET SAYS FRANK WALTERS DIRECTOR OF RESEARCH FOR M SHANKEN COMMUNICATIONS A RESEARCH COMPANY I DON'T THINK ANHEUSERBUSCH WILL SIT BACK AND LET MILLER TAKE MARKET SHARE AWAY MICHAEL BROPHY A MILLER SPOKESMAN SAYS HIS COMPANY PLANS TO CAPITALIZE ON THE MOLSON BRAND NAME WHICH HE SAYS IS WELL KNOWN IN THE US AND ON ITS CANADIAN IMAGE MOLSON WILL CONTINUE TO BE BREWED IN CANADA THERE'S A NICHE FOR THESE SUPERPREMIUM OFFERINGS AS WE'VE SEEN IN THE POPULARITY OF MICROBREWS WE BELIEVE THAT WE CAN CAPITALIZE ON THE GROWTH IN THAT CATEGORY CURRENTLY ABOUT 7 OF THE US BEER MARKET INCLUDING IMPORTS FALLS INTO CATEGORIES THAT ARE PRICED ABOVE THE AVERAGE OR PREMIUM BRANDS WHILE MOLSON IS BROADENING ITS HORIZONS LABATT IS HOMING IN ON ITS MAIN COMPETITOR'S DOMESTIC MARKET LEAD BY FAR AND AWAY THE MORE SIGNIFICANT GROWTH IN VOLUMES FOR THE ORGANIZATION WILL COME FROM IMPROVED SHARE IN CANADA OVER THE NEXT FIVE YEARS SAYS GEORGE TAYLOR LABATT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER LABATT ALSO EXPECTS TO INCREASE SALES IN THE US BRITAIN AND ITALY BREWING IS A BUSINESS OF MOMENTUM AND LABATT'S SALES FORCE ALREADY HAS MADE ADVANCES MR TAYLOR SAYS LABATT'S MARKET SHARE OF 44 IS UP NEARLY TWO PERCENTAGE POINTS FROM A YEAR AGO NOW IT WANTS TO CAPTURE 47 OF CANADIAN BEER SALES WITHIN TWO YEARS BUT ANALYSTS QUESTION HOW LONG LABATT CAN KEEP UP THE PACE BEFORE MOLSON COMES OUT SWINGING TO DEFEND ITS MARKET LEAD FOR ONE THING THEY SAY MUCH OF LABATT'S RECENT GAINS WERE DUE TO THE INTRODUCTION OF LABATT GENUINE DRAFT LAST SPRING MONTHS BEFORE MOLSON COULD SUPPLY THE MARKET WITH A COLDFILTERED PRODUCT OF ITS OWN MOLSON HAS SINCE CORRECTED ITS SUPPLY PROBLEM LABATT'S GOAL TO INCREASE SALES IN CANADA HINGES ON THE MARKET'S MAINTAINING ITS STATUS QUO COMPARED WITH OTHER INDUSTRY OFFICIALS MR TAYLOR SEEMS OPTIMISTIC ABOUT BEER SALES IN CANADA PREDICTING THAT SALES WILL LEVEL OFF AFTER THEIR PAST DECLINES AND DESPITE THE PLANNED LOWERING OF TRADE BARRIERS HE EXPECTS SOME RULES TO REMAIN THAT WILL MINIMIZE COMPETITION FROM LOWERPRICED IMPORTS THE MAINSTREAM POPULAR BRANDS IN CANADA WILL REMAIN THE MAINSTREAM BRANDS AND WILL HAVE THE LION'S SHARE OF THE MARKET HE SAYS 9303160083 930316 TRUMP'S FINANCES CLEARED FOR CASINO LICENSE BID TRENTON NJ NEW JERSEY GAMBLING REGULATORS SAID DONALD TRUMP HAS ENOUGH FINANCIAL STABILITY FOR HIS TAJ MAHAL CASINO IN ATLANTIC CITY TO RECEIVE A NEW TWOYEAR LICENSE STEVEN PERSKIE CHAIRMAN OF THE CASINO CONTROL COMMISSION CREDITED MR TRUMP FOR SIGNIFICANTLY IMPROVING THE PERFORMANCE OF HIS LARGEST CASINO AND FOR MAKING FURTHER PROGRESS IN RESTRUCTURING THE OVERALL DEBT OF THE TRUMP ORGANIZATION IN A 20PAGE REPORT ON MR TRUMP'S FINANCIAL CONDITION THE COMMISSION NOTED THAT MR TRUMP HAD COMPENSATED FOR WEAKER CONDOMINIUM SALES THAN ANTICIPATED AT NEW YORK'S TRUMP TOWER WITH HIGHERTHANEXPECTED INCOME FROM CERTAIN FAMILYOWNED PROPERTIES IN NEW YORK AS WELL AS BY REDUCING COSTS AT THE TRUMP ORGANIZATION THE COMMISSION SAID THAT MR TRUMP WAS UNABLE TO PAY 41 MILLION IN TAXES DUE IN JANUARY AND LAST JUNE ON UNDEVELOPED LAND IN MANHATTAN AND 26 MILLION ON AN ATLANTIC CITY LAND PARCEL MR TRUMP SAID THAT THE ATLANTIC CITY TAX HAD BEEN PAID AND THAT HE HAD WITHHELD PAYMENT ON THE NEW YORK TAX PENDING COMPLETION OF TALKS WITH THE CITY OVER TAX BREAKS FOR CONSTRUCTING AFFORDABLE HOUSING ON THE LAND 9303160082 930316 HEALTH US TESTING OF ABORTION PILL MAY START SOON BY ELYSE TANOUYE AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL THE FRENCH ABORTION PILL IS LIKELY TO BE AVAILABLE TO THOUSANDS OF AMERICAN WOMEN IN SEVERAL MONTHS THE MAKER OF THE CONTROVERSIAL FRENCH DRUG SAID IT PLANS TO SELECT A RESEARCH ORGANIZATION TO CONDUCT CLINICAL TRIALS IN THE US WITHIN THE NEXT TWO MONTHS PAVING THE WAY FOR THE PILL'S EVENTUAL MARKETING HERE IN AN INTERVIEW ROUSSELUCLAF SA'S PRESIDENT EDOUARD SAKIZ SAID THE COMPANY IS CONSIDERING OFFERS TO TEST THE DRUG RU486 FROM TWO OR THREE MEDICAL RESEARCH ORGANIZATIONS IN THE US THE DRUG'S TESTING WILL GO VERY FAST DR SAKIZ SAID BUT HE WOULDN'T PREDICT WHEN THE DRUG MIGHT BE MARKETED IN THE US HE SAID THE COMPANY STILL NEEDS TO FIGURE OUT HOW TO DISTRIBUTE THE DRUG IN THE US HEALTHCARE SYSTEM WHICH IS VERY DIFFERENT FROM THE SYSTEMS IN FRANCE AND BRITAIN WHERE THE DRUG IS RESTRICTED TO SPECIAL CLINICS UNDER US LAW IF THE DRUG IS APPROVED FOR MARKETING PRIVATE PHYSICIANS WILL BE ABLE TO PRESCRIBE AND ADMINISTER IT ANY COMPANY THAT GETS A MARKETING LICENSE FOR RU486 FROM ROUSSELUCLAF WILL NEED TO FIND SPECIFIC WAYS TO TRAIN PHYSICIANS AND ENSURE THAT THE DRUG IS ADMINISTERED SAFELY DR SAKIZ SAID ABOUT 15 SMALL COMPANIES AND VENTURECAPITAL INTERESTS HAVE APPROACHED THE COMPANY TO MARKET THE DRUG HE SAID ROUSSELUCLAF'S MOVE IS A TURNAROUND FROM JUST LAST YEAR WHEN IT REFUSED TO ALLOW THE DRUG INTO THE US CITING THE BUSH ADMINISTRATION'S HOSTILITY TOWARD ABORTION SINCE THE ELECTION OF PRESIDENT CLINTON WHO SUPPORTS ABORTION RIGHTS THE FDA HAS BEEN AGGRESSIVELY SEEKING A MARKETING APPLICATION FOR RU486 A REPORT OF THE COMPANY'S INTENTIONS APPEARS IN THIS WEEK'S US NEWS & WORLD REPORT WHICH PREDICTED THE DRUG IS LIKELY TO REACH AMERICAN WOMEN BY THE SUMMER OF 1994 BUT SKEPTICS SUGGEST THE COMPANY IS MERELY GIVING THE APPEARANCE OF MOVING QUICKLY ON THE CLINICAL TRIALS TO REDUCE POLITICAL PRESSURE FROM WASHINGTON AND ABORTIONRIGHTS GROUPS THEY WORRY THAT ROUSSELUCLAF WILL RAISE OBSTACLES TO SLOW DOWN THE DRUG'S MARKETING LATER HOECHST AG THE PARENT OF ROUSSELUCLAF IS THOUGHT BY MANY TO STILL OPPOSE RELEASING THE PILL IN THE US BUT DR SAKIZ DENIED HOECHST IS STANDING IN THE WAY ALTHOUGH THERE ARE SOME PEOPLE AT HOECHST WHO OPPOSE ABORTION HE SAID THEY AREN'T BLOCKING THE DRUG'S DISTRIBUTION IN THE US ALTHOUGH DR SAKIZ WOULDN'T IDENTIFY THE RESEARCH ORGANIZATIONS UNDER CONSIDERATION THE POPULATION COUNCIL AN INTERNATIONAL NONPROFIT RESEARCH AGENCY BASED IN NEW YORK IS NEGOTIATING WITH ROUSSELUCLAF TO CONTINUE ITS CLINICAL TRIALS WHICH WERE HALTED IN 1990 BY THE COMPANY SAYS FRANCINE COEYTAUX DEVELOPMENT CONSULTANT TO THE COUNCIL ON THE RU486 PROJECT THE COUNCIL HAS COMPLETED PRELIMINARY TESTING OF THE DRUG ON ABOUT 400 PATIENTS AND IS SEEKING TO BEGIN PHASE III TRIALS WHICH TEST THE DRUG'S EFFICACY SHE SAID WHAT TYPE OF TESTING AND HOW QUICKLY IT CAN BE COMPLETED ISN'T CLEAR BECAUSE THE US FOOD AND DRUG ADMINISTRATION HASN'T SAID EXPLICITLY WHAT IT WILL REQUIRE FOR MARKETING APPROVAL MS COEYTAUX SAID IF THE FDA ACCEPTS THE RESULTS OF CLINICAL TESTS CONDUCTED IN EUROPE AS IT HAS INDICATED IT MIGHT DO THEN ALL THAT WOULD BE NEEDED IS TO DEVELOP AND TEST A SYSTEM FOR SAFELY ADMINISTERING THE DRUG IN THE US MS COEYTAUX SAID THERE IS ENOUGH DATA IN THE PUBLISHED LITERATURE TO ALLOW FOR A LARGE TRIAL THAT WOULD ASSESS THE PILL'S SAFETY AND EFFICACY IN A US SETTING AND TRAIN PHYSICIANS WHILE PROVIDING ACCESS TO THE DRUG TO THOUSANDS OF WOMEN WHO NEED IT SAID A SENIOR FDA OFFICIAL THE FDA WOULD WELCOME SUCH A TRIAL THE FDA OFFICIAL SAID THAT DEPENDING ON WHETHER ANY PROBLEMS ARISE THE AGENCY COULD ALLOW THE DRUG TO CONTINUE TO BE AVAILABLE TO WOMEN AFTER THE TRIAL HAD ENDED BUT BEFORE A MARKETING APPLICATION HAD BEEN APPROVED THE FDA HAS SAID IT COULD COMPLETE A REVIEW OF THE PILL IN FOUR TO SIX MONTHS AFTER IT RECEIVES AN APPLICATION CONTAINING CLINICAL DATA SHOWING SAFETY AND EFFICACY FDA REVIEW OF CLINICAL STUDIES OF DRUGS FOR NONLIFETHREATENING CONDITIONS CAN TAKE A YEAR OR MORE A PERSON FAMILIAR WITH THE NEGOTIATIONS BETWEEN THE FDA AND ROUSSELUCLAF SAID THE CLINICAL TRIALS MIGHT INCLUDE 15000 TO 20000 WOMEN PLANNED PARENTHOOD FEDERATION OF AMERICA'S PRESIDENT PAMELA MARALDO SAID HER ORGANIZATION HAS TOLD THE POPULATION COUNCIL THAT ITS 922 CLINICS ACROSS THE COUNTRY STAND READY TO PARTICIPATE IN ANY CLINICAL TRIALS OF THE ABORTION PILL PLANNED PARENTHOOD IS ALSO INTERESTED IN LICENSING THE DRUG FROM ROUSSELUCLAF FOR MARKETING SHE SAID PLANNED PARENTHOOD CONDUCTS 200000 ABORTIONS OUT OF THE TOTAL 14 MILLION PERFORMED IN THE US EACH YEAR 9303160081 930316 TRAVEL AUTO RENTERS HIT THE BRAKES ON UNDER25S BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CARRENTAL COMPANIES SEEKING TO REDUCE HIGHRISK CUSTOMERS ARE CLOSING THE DOOR ON DRIVERS UNDER AGE 25 MOST RENTAL AGENCIES ARE EITHER ELIMINATING THE RENTING OF CARS TO THOSE DRIVERS OR CHARGING THEM HIGHER FEES TO COVER RISING INSURANCE COSTS CRITICS SAY THE NEW RESTRICTIONS ARE TOO SWEEPING AND MAY PENALIZE SOME CUSTOMERS PARTICULARLY WOMEN UNFAIRLY BUDGET RENT A CAR CORP FOR EXAMPLE RECENTLY RAISED ITS MINIMUMAGE REQUIREMENT TO 25 FROM 21 AT MOST LOCATIONS AND ALAMO RENT A CAR FORT LAUDERDALE FLA JUST INCREASED ITS DAILY SURCHARGE TO 15 FROM 10 TO CUSTOMERS IN THE 21TO25 AGE BRACKET MOST CAR AGENCIES HAVE NEVER RENTED CARS TO PEOPLE UNDER 21 ALTHOUGH THESE MOVES AFFECT LESS THAN 7 OF THE INDUSTRY'S POTENTIAL MARKET THEY REFLECT A GROWING TREND AMONG CARRENTAL COMPANIES TO EITHER WEED OUT OR IMPOSE CHARGES ON CUSTOMERS WITH HIGHER ACCIDENT RATES LAST YEAR HERTZ CORP A UNIT OF PARK RIDGE CORP PARK RIDGE NJ BEGAN APPLYING SURCHARGES ON RENTERS IN FOUR NEW YORK BOROUGHS AND SEVERAL COMPANIES BEGAN CHECKING DRIVING RECORDS OF SOME CLIENTS AND REJECTING THOSE DEEMED HIGH RISK EFFORTS TO CUT INSURANCE LIABILITIES WILL CONTINUE TO GROW BECAUSE IT'S THE SINGLE BIGGEST ISSUE WE FACE SAYS JOHN C SALAGAJ VICE PRESIDENT OPERATIONS FOR VALUE RENTACAR INC A UNIT OF MITSUBISHI MOTORS CORP TOKYO THE MOVE TO DENY CARS TO THE UNDER25 POPULATION WILL HURT YOUNG BUSINESS TRAVELERS THE MOST THAT'S BECAUSE MANY AGENCIES INCLUDING HERTZ AVIS INC GARDEN CITY NY AND THE NATIONAL CAR RENTAL SYSTEM INC UNIT OF GENERAL MOTORS CORP ALREADY HAVE A MINIMUMAGE REQUIREMENT OF 25 BUT THE RESTRICTION HAS USUALLY BEEN WAIVED IN CORPORATE CONTRACTS NOW THESE AGENCIES AND OTHERS ARE RENEGOTIATING CONTRACTS AND ELIMINATING THAT EXEMPTION IN MANY ACCOUNTS RAISING THE SPECTER OF YOUTHFUL EMPLOYEES STRANDED AT AN AIRPORT WITHOUT ACCESS TO A RENTAL CAR ANYTHING THAT INTERFERES WITH A COMPANY'S EFFORT TO DO BUSINESS IS A BIG PROBLEM SAYS RUDOLPH MONTELEONE CHAIRMAN OF THE ASSOCIATION OF CORPORATE TRAVEL EXECUTIVES INDUSTRY EXECUTIVES SAY A SNOWBALL EFFECT OCCURS IN DENYING CARS TO A HIGHRISK GROUP AS SOME RENTAL AGENCIES RESTRICT ACCESS TO CUSTOMERS UNDER 25 THOSE DRIVERS FLOCK TO THE REMAINING COMPANIES WHICH SIGNIFICANTLY INCREASES THE NUMBER OF HIGHRISK DRIVERS AT THEIR LOCATIONS THOSE REMAINING AGENCIES IN TURN FEEL THEY MUST IMPOSE SIMILAR AGE RESTRICTIONS LEST THEY SUFFER A HIGHER PERCENTAGE OF COLLISIONS THAN THEIR COMPETITORS THE INDUSTRY DOESN'T APOLOGIZE FOR ITS DECISIONS WE'RE ATTEMPTING TO TAKE THE YOUNG RENTER OUT OF COMMERCIAL CARS SAYS RAY FOSS NATIONAL'S CORPORATE VICE PRESIDENT SALES WE SEE OUR INSURANCELIABILITY COSTS ESCALATING RAPIDLY AND WHEN YOU BREAK DOWN OUR NUMBERS YOU FIND THAT YOUNG RENTERS ACCOUNT FOR SIGNIFICANTLY HIGHER LOSSES ADDS A HERTZ SPOKESWOMAN HERTZ CANNOT AFFORD TO INSURE RENTERS UNDER 25 AND ATTEMPTS TO GET OUTSIDE INSURANCE FOR THEM HAVE NOT WORKED CRITICS FAULT THE RENTAL COMPANIES FOR THE SWEEPING NATURE OF THE RESTRICTION IF YOU'RE EXPERIENCING INCREASED COSTS BECAUSE OF CERTAIN INDIVIDUALS IN THE POPULATION YOU SHOULD RAISE THE RATES FOR THOSE PEOPLE NOT AN ENTIRE CLASS SAYS DAVID PERELMAN PRESIDENT OF DMS TRAVEL INC A NEW YORK TRAVELMANAGEMENT COMPANY CARRENTAL FIRMS ARE ALREADY USING COMPUTER SEARCHES IN SOME STATES TO SCREEN OUT DRIVERS WITH POOR DRIVING RECORDS HE SAYS AND THAT COULD BE EXPANDED INSTEAD OF DENYING ACCESS TO AN ENTIRE BLOC OF DRIVERS CRITICS ALSO POINT OUT THAT RENTAL COMPANIES DON'T DENY CARS TO OLDER DRIVERS EVEN THOUGH INSURANCE STATISTICS INDICATE THAT PEOPLE OVER 74 EXPERIENCE HIGH ACCIDENT RATES NO ONE DISPUTES THE RENTAL COMPANIES' CLAIMS THAT YOUNGER DRIVERS ARE MORE PRONE TO COLLISIONS THE INSURANCE INFORMATION INSTITUTE A TRADE ASSOCIATION BASED IN NEW YORK SAYS MOTORISTS BETWEEN 20 AND 24 REPRESENT 101 OF ALL DRIVERS BUT 155 OF DRIVERS KILLED IN AUTO ACCIDENTS BUT THE COMPANIES' CRACKDOWN ON THAT AGE GROUP UNFAIRLY PENALIZES WOMEN AS MALE DRIVERS ACCOUNT FOR FAR MORE ACCIDENTS THAN FEMALE DRIVERS 50 MORE BY SOME MEASURES FROM A RISK POINT OF VIEW THE YOUNG MALE IS A LOT WORSE THAN THE FEMALE SAYS SEAN MOODY AN ECONOMIST WITH THE INSURANCE ASSOCIATION CARRENTAL EXECUTIVES ACKNOWLEDGE THEY ARE PAINTING WITH A BROAD BRUSH THE OBJECT IS TO ELIMINATE A SMALL PERCENTAGE OF OUR CUSTOMERS WHO ACCOUNT FOR MOST OF OUR INSURANCE LIABILITY COSTS SAYS FRANK BURK VICE PRESIDENT RISK MANAGEMENT FOR BUDGET A UNIT OF BEECH HOLDINGS CORP LISLE ILL TIME MONEY AND IMPROVEMENTS IN TECHNOLOGY WILL SOMEDAY ENABLE BUDGET TO QUICKLY SEARCH INDIVIDUAL DRIVING RECORDS OF CUSTOMERS CONSIDERED HIGHRISK BECAUSE OF AGE MR BURK SAYS UNTIL THEN WE HAVE TO MAKE THE DECISION DO WE TAKE THEM ALL OR DO WE TAKE NONE BUT AT LEAST ONE RENTAL COMPANY DOLLAR RENT A CAR SYSTEMS INC SEES OPPORTUNITIES BY BUCKING THE TREND ITS MINIMUM AGE FOR RENTERS IS 21 ALTHOUGH IT APPLIES A SURCHARGE TO CUSTOMERS UNDER 25 WE WANT TO MAKE IT AS EASY AS POSSIBLE FOR A COMPANY TO RENT FROM US SAYS A SPOKESWOMAN FOR THE CHRYSLER CORP UNIT BESIDES THE AGENCY'S RESEARCH SHOWS THAT MOST OF THE DRIVERS IN THE HIGHRISK CATEGORY ARE CLOSER TO 25 THAN 21 SOMEONE WHO'S ALMOST 25 THE SPOKESWOMAN SAYS IS NOT MUCH RISKIER THAN SOMEONE WHO'S 27 9303160080 930316 REVIEW & OUTLOOK EDITORIAL RIEGLE'S LAST SUPPER IN THIS POLITICALLY CORRECT ERA THERE ARE FEW BETTER POLITICAL TARGETS THAN 12 MIDDLEAGED WHITE MALE BANKERS NO DOUBT THAT'S WHY SENATE BANKING CHAIRMAN DONALD RIEGLE INVITED THE PRESIDENTS OF THE REGIONAL FEDERAL RESERVE BANKS TO CAPITOL HILL LAST WEEK A DOZEN WHITE GUYS HAVEN'T LOOKED SO UNCOMFORTABLE TOGETHER SINCE THE LAST SUPPER WHICH WAS ALMOST CERTAINLY WHAT MR RIEGLE HAD IN MIND THE PRESIDENTS HOLD FIVE OF THE 12 SEATS ON THE FED COMMITTEE THAT SETS US MONETARY POLICY THE SEVEN FED GOVERNORS HOLD THE OTHERS NEVER BEFORE HAS CONGRESS CALLED THEM TO TESTIFY TOGETHER BUT IN THE AGE OF CLINTON EVERYONE WILL APPARENTLY BE INFAMOUS FOR AT LEAST 10 MINUTES ASK THE DRUG COMPANIES I'M VERY MUCH AWARE THAT THE COUNTRY IS ASKING FOR MORE ACCOUNTABILITY CHAIRMAN RIEGLE TOLD THE PRESIDENTS WHO WERE LINED UP SIDEBYSIDE FOR THE SAKE OF TV CAMERAS MR RIEGLE IS OF COURSE AN EXPERT ON PUBLIC ACCOUNTABILITY HAVING SUCCESSFULLY EVADED IT FOR HIS CAREANDPOLITICALFEEDING OF S&L KINGPIN CHARLIE KEATING MR RIEGLE NOW WANTS THE FED PRESIDENTS TO BE MORE ACCOUNTABLE TO HIM BY SUBJECTING THEM TO SENATE CONFIRMATION HAS A WOMAN EVER BEEN A REGIONAL PRESIDENT CHIPPED IN MARYLAND'S PAUL SARBANES HIMSELF A MIDDLEAGED WHITE GUY ONLY ONE HE WAS TOLD HOW ABOUT A MINORITY HE THEN ASKED IN A TONE OF DISAPPROVAL NONE THE PRESIDENTS ARE IN FACT NOMINATED BY REGIONAL BOARDS AND MOST OF THEM HAVE WORKED THEIR WAY UP THE FED LADDER IT'S MOSTLY A MERIT SYSTEM WE'D HAVE THOUGHT THE PUBLIC WANTS THE FED TO BE INTERESTED IN MAINTAINING THE VALUE OF ONLY ONE COLOR GREEN A COLOR DEAR TO ALL AMERICANS IN ANY EVENT THE DEMOCRATIC SENATORS SOON GOT TO THEIR REAL DEMAND EASY MONEY DESPITE THEIR RHETORIC ABOUT STIMULUS THEY KNOW THAT THE CLINTON TAX INCREASE WILL SLOW THE ECONOMY SO THEY WANT THE FED TO COMPENSATE BY GUNNING THE MONEY SUPPLY IF WE'RE GOING TO ADJUST FISCAL POLICY THEN WE HAVE TO TAKE ACCOUNT OF MONETARY POLICY MR RIEGLE SAID I THINK WE NEED SOME TEAMWORK HERE HE SEEMS TO HAVE FORGOTTEN THAT THIS SAME TAXESFORMONEY TRADEOFF WAS TRIED IN THE 1970S WITH INFLATIONARY EFFECT WE'D LIKE TO IGNORE MR RIEGLE EXCEPT THAT HIS INTIMIDATION SEEMS TO FIT THE CLINTON TEAM'S NOWFAMILIAR POLITICAL METHOD OF GOOD COP BAD COP PRESIDENT CLINTON EMBRACES FED CHAIRMAN ALAN GREENSPAN WHO KNOWS HE'S IN NO POSITION TO RESIST MEANWHILE MR CLINTON'S ENFORCERS ON CAPITOL HILL LET THE FED KNOW WHO'LL BE SWIMMING WITH THE FISHES IF ITS MEMBERS DON'T PLAY ALONG MR GREENSPAN'S ABILITY TO CONTROL FED POLICY IS DIMINISHED EVEN AS HE'S PERSONALLY COURTED THIS IS A VASTLY MORE SOPHISTICATED STRATEGY THAN THE TRADITIONAL FEDBASHING TRIED BY THE BUSH ADMINISTRATION AND FOR NOW IT SEEMS TO BE WORKING INVESTORS HAVE UNTIL RECENT DAYS BEEN BIDDING UP BOND PRICES AS IF THEY DON'T FEAR RENEWED INFLATION THOUGH MAYBE THAT'S BECAUSE THEY ALSO ANTICIPATE LESSTHANROBUST ECONOMIC GROWTH THE COMMODITY PRICE INDICATORS THAT WE FOLLOW ARE GIVING MIXED SIGNALS GOLD IS STABLE BUT LUMBER IS SOARING THE PROBLEM WITH GOOD COP BAD COP HOWEVER IS THAT THE TARGET NEVER KNOWS WHICH COP IS THE REAL ONE THE FINANCIAL MARKETS AND THE ECONOMY WILL PERFORM BETTER IF THE CLINTON DEMOCRATS DROP THE RIEGLE ROUTINE AND LET THE FED PERFORM ITS JOB OF KEEPING PRICES STABLE 9303160079 930316 BUSINESS BRIEF RAMSAY HEALTH CARE INC PACT SEEKS RECAPITALIZATION OF THE CHAIRMAN'S INTERESTS RAMSAY HEALTH CARE INC NEW ORLEANS SAID IT ENTERED INTO AN AGREEMENT CALLING FOR THE RECAPITALIZATION OF INTERESTS CONTROLLED BY CHAIRMAN PAUL RAMSAY THE RECAPITALIZATION WOULD REDUCE THE VOTING POWER OF MR RAMSAY'S INTERESTS TO 30 FROM 41 WHILE INCREASING THE EQUITY STAKE TO ABOUT 30 THE ACTION WAS APPROVED BY A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS RAMSAY OPERATES HOSPITALS FOR PSYCHIATRIC CARE CHIEF EXECUTIVE OFFICER GREGORY H BROWNE SAID THE RECAPITALIZATION WOULD IMPROVE THE COMPANY'S BALANCE SHEET WHILE ELIMINATING EXPENSIVE DEBT UNDER THE AGREEMENT RAMSAY WILL ISSUE 142486 SHARES OF A NEW SERIES OF CONVERTIBLE PREFERRED STOCK IN EXCHANGE FOR ALL OF THE CLASS B PREFERRED STOCK A 2 MILLION 161 SUBORDINATED PROMISSORY NOTE AND 500000 CASH MR RAMSAY'S INTERESTS MAY ALSO PURCHASE AS MANY AS AN ADDITIONAL 9835 SHARES OF THE NEW SERIES OF PREFERRED STOCK FOR 5084 A SHARE IN CASH AT THE CLOSING OF RECAPITALIZATION 9303160077 930316 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 FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION ISSUE OF DEBENTURES DUE MARCH 25 2003 WAS PRICED AT PAR TO YIELD 66 THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 51 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC SELLING CONCESSION IS 250 AND REALLOWANCE IS 125 DELIVERY IS SCHEDULED FOR MARCH 25 FLAT FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY FIRST BOSTON THE OFFERING SERIES 199350 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 180 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES MAY 28 FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES GOLD 1502 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 199349 IS BACKED BY FANNIE MAE 20YEAR 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1975 YEARS THE ISSUE SETTLES APRIL 30 FANNIE MAE SAYS THIS IS THE FIRST REMIC SECURITIES DEAL BACKED BY 20YEAR MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199348 IS BACKED BY FANNIE MAE 15YEAR 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 380 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 865 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1375 YEARS THE ISSUE SETTLES APRIL 30 PLATTE RIVER COLORADO POWER AUTHORITY 1496 MILLION REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A SMITH BARNEY HARRIS UPHAM & CO INC GROUP YIELDS RANGE FROM 260 IN 1994 TO 560 IN 2008 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING FITCH INVESTORS SERVICE INC IS EXPECTED TO RATE THE BONDS SINGLEAPLUS ETHAN ALLEN INTERIORS INC INITIAL OFFERING OF 73 MILLION SHARES WAS PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO GROSS SPREAD IS 1125 SELLING CONCESSION IS 69 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR MARCH 23 SHOE CARNIVAL INC INITIAL OFFERING OF 21 MILLION SHARES WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY MCDONALD & CO SECURITIES INC GROSS SPREAD IS 91 CENTS SELLING CONCESSION IS 50 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY PHYSICAL IS SCHEDULED FOR MARCH 23 PACIFIC SUNWEAR OF CALIFORNIA INC INITIAL OFFERING OF 18 MILLION SHARES WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO GROSS SPREAD IS 91 CENTS SELLING CONCESSION IS 52 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR MARCH 22 KINGDOM OF DENMARK SOVEREIGN 700 MILLION MARKS OF 6125 EUROBONDS DUE APRIL 15 1998 AT ISSUE PRICE 101375 VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE REOFFERED AT 99625 TO YIELD 621 ANNUALLY A SPREAD 10 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE BOBL NO 105 FEES 2 DEUTSCHE PFANDBRIEF UND HYPOTHEKEN BANK AG GERMANY 200 MILLION MARKS OF REVERSE FLOATINGRATE NOTES DUE APRIL 15 2003 AT ISSUE PRICE PAR VIA TRINKHAUS & BURKHARDT INTEREST IN FIRST YEAR 95 THEREAFTER AT 1225 MINUS THE SIXMONTH LONDON INTERBANK OFFER RATE FEES 030 HELABA LUXEMBOURG OFFERING 100 MILLION MARKS OF 6 EUROBONDS DUE APRIL 28 1998 AT ISSUE PRICE OF 9980 VIA PARENT LANDESBANK HESSENTHUERINGEN YIELD 605 ANNUALLY A SPREAD 39 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE FEES NOT DISCLOSED FUJI INTERNATIONAL FINANCE NV JAPAN PARENT 35 BILLION YEN OF PERPETUAL SUBORDINATED FLOATING RATE NOTES VIA FUJI INTERNATIONAL FINANCE LTD NOTES PAY INTEREST FLOATING AT 10 BASIS POINTS BELOW THE JAPANESE LONG TERM PRIME RATE FOR THE FIRST FIVE YEARS AT 10 BASIS POINTS ABOVE LTPR FROM MARCH 1998 TO MARCH 2003 AND AT 60 BASIS POINTS ABOVE LTPR THEREAFTER CALLABLE ON ANY INTEREST PAYMENT DATE FROM MARCH 1998 AT PAR FEES 030 FUJI INTERNATIONAL FINANCE NV JAPAN PARENT 15 BILLION YEN OF PERPETUAL VARIABLE RATE NOTES VIA YAMAICHI INTERNATIONAL EUROPE LTD NOTES PAY INTEREST QUARTERLY FIRST COUPON SET AT 75 BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE SUBSEQUENT COUPONS SET EITHER BY NEGOTIATION OR REVERSION TO PENALTY RATES FROM YEARS ONE TO SIX AT 95 BASIS POINTS ABOVE LIBOR FROM YEARS SIX TO 11 AT 125 BASIS POINTS ABOVE LIBOR AND FROM YEAR 11 ONWARD AT 195 BASIS POINTS ABOVE LIBOR PUT OPTION ON EACH INTEREST PAYMENT DATE IF NO NEGOTIATED RATE FIXED CALL OPTION AFTER FIVE YEARS AT PAR ISSUE PRICE PAR FEES 1 PROVINCE OF QUEBEC CANADA 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE APRIL 1 2003 AT ISSUE AND FIXED REOFFER PRICE PAR VIA DEUTSCHE BANK AG LONDON INTEREST FLOATS AT 25 BASIS POINTS BELOW SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 525 MAXIMUM OF 8 FEES 50 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SUPRANATIONAL AGENCY 100 MILLION OF FLOATING RATE EURONOTES DUE APRIL 2000 AT ISSUE AND FIXED REOFFER PRICE 9975 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST PAID ACCORDING TO FOLLOWING FORMULA 10YEAR CONSTANT MATURITY TREASURY A REFERENCE RATE OF THE FEDERAL RESERVE BANK MULTIPLIED BY 05 PLUS 150 BASIS POINTS SUBJECT TO A MINIMUM COUPON OF 5 AND A MAXIMUM OF 28 FEES 045 LKB FINANCE NV GERMANY 200 BILLION ITALIAN LIRE OF 1075 EUROBONDS DUE APRIL 16 2003 AT ISSUE PRICE 10115 VIA BANCA D'AMERICA E D'ITALIA A DEUTSCHE BANK AG SUBSIDIARY GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG YIELD 1089 ANNUALLY AFTER DEDUCTING FEES FEES 1625 CREDIT COMMERCIAL DE FRANCE FRANCE 500 MILLION FRENCH FRANCS OF REVERSECOUPON FLOATING RATE NOTES DUE APRIL 8 1998 AT ISSUE PRICE 101525 VIA CREDIT COMMERCIAL DE FRANCE INTEREST IN FIRST YEAR 875 THEREAFTER AT 14 MINUS THE SIXMONTH PARIS INTERBANK OFFERED RATE REOFFERED AT PAR FEES 1875 9303160076 930316 INTERNATIONAL ITALY'S OLIVETTI PLANS BIG INCREASE IN CAPITAL INDICATES WIDER LOSS COMPUTER MAKER'S PROPOSAL ON SHARES SPURS DOUBTS AMID MARKET WEAKNESS BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALIAN COMPUTER MAKER ING OLIVETTI & C SPA ANNOUNCED PLANS FOR A MASSIVE CAPITAL INCREASE OF 903 BILLION LIRE 5612 MILLION AND REPORTED A PRELIMINARY CONSOLIDATED 1992 NET LOSS OF 650 BILLION LIRE WIDENING FROM A 1991 LOSS OF 460 BILLION LIRE THE COMPANY'S SHARES WERE SUSPENDED FROM TRADING YESTERDAY BUT MARKET WATCHERS SAID THEY EXPECT THE STOCK TO PLUNGE AS MUCH AS 30 OR 40 WHEN TRADING RESUMES PERHAPS TODAY INDUSTRY ANALYSTS SAY THEY DON'T SEE AN EARLY END TO FALLING PRICES IN THE EUROPEAN COMPUTER MARKET AND THEY WONDER WHY INVESTORS SHOULD RISK EVEN MORE MONEY ON OLIVETTI BY SUBSCRIBING TO THE CAPITAL INCREASE OLIVETTI CHAIRMAN CARLO DE BENEDETTI GAVE THREE REASONS FOR THE CAPITAL INCREASE TO ACCELERATE THE DEVELOPMENT OF THE COMPANY TO CONVEY A CLEAR MESSAGE TO OUR LARGE INTERNATIONAL CUSTOMERS THAT OLIVETTI IS HERE TO STAY AND TO SHOW WE HAVE CONFIDENCE IN OUR COUNTRY ITALY HE SAID IS EMERGING FROM A BLOCKED SYSTEM TO A MORE MARKET ECONOMY AND I'M CONFIDENT THE CHANGES ARE POSITIVE MR DE BENEDETTI WHO TOOK OPERATING CONTROL OF OLIVETTI INTO HIS OWN HANDS IN NOVEMBER 1991 AND HAS GUIDED A MAJOR RESTRUCTURING OF THE GROUP SAYS THE WORST IS OVER THE BIGGEST EFFORT WAS MADE IN THE LAST TWO YEARS HE SAID WE'VE REDUCED THE TOTAL WORK FORCE BY 30 CUTTING 18000 JOBS THE BIGGEST RESTRUCTURING COSTS ARE BEHIND US OLIVETTI SAID PRELIMINARY 1992 REVENUE AMOUNTED TO 802 TRILLION LIRE DOWN FROM 86 TRILLION IN 1991 HE SAID THE FALL WAS LARGELY DUE TO PRICE REDUCTIONS AND WAS PARTLY OFFSET BY INCREASED VOLUMES AND MARKET SHARES THE COMPANY REPORTED A PRELIMINARY 1992 OPERATING LOSS OF 230 BILLION LIRE COMPARED WITH A 28 BILLION LIRE LOSS IN 1991 ATTRIBUTING THE LOSS TO THE REDUCTION IN MARGINS THAT HAS AFFECTED THE ENTIRE SECTOR EXTRAORDINARY EXPENSES AND RESTRUCTURING COSTS WERE LIGHTER THAN IN 1991 BUT STILL AMOUNTED TO 260 BILLION LIRE MR DE BENEDETTI EXPECTS OLIVETTI TO BREAK EVEN IN 1993 THERE WILL STILL BE SOME EXTRAORDINARY COSTS HE SAID REFERRING ESPECIALLY TO THE HEAVY COST OF A FURTHER 3500 JOB CUTS ANNOUNCED FOR THIS YEAR WHEN THERE'S A REDUCTION IN PRICES AS WE'RE SEEING NOW YOU HAVE TO REDUCE COSTS OLIVETTI SAID IT WILL OFFER SHAREHOLDERS SIX NEW SHARES AT THE NOMINAL VALUE OF 1000 LIRE EACH FOR EVERY FOUR SHARES IN HAND IN ALL CATEGORIES OF SHARES OLIVETTI SHARES CLOSED FRIDAY AT 2202 LIRE MAKING THE 1000 LIRE ISSUE PRICE LESS THAN HALF THE MARKET PRICE OLIVETTI'S PARENT COMPANY COMPAGNIE INDUSTRIALE RIUNITE SPA AND CIR'S HOLDING COMPANY COFIDE SPA WILL FULLY TAKE UP THEIR NEARLY 40 SHARE OF THE CAPITAL INCREASE THE COMPANY WHICH WANTS TO USE THE CAPITAL INCREASE TO PARE DEBT SAID IT ALSO PLANS TO INCREASE INVESTMENTS IN ITS PRODUCTS DIVISION AND ITS PROFESSIONAL SERVICES DIVISION AS WELL AS SEEK NEW PARTNERSHIPS FOR ITS SYSTEMS DIVISION 9303160075 930316 US APPROVES BRITISH AIR STAKE IN USAIR GROUP PENA LINKS DECISION TO BID BY US CARRIERS TO GAIN BETTER ACCESS TO UK BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION APPROVED BRITISH AIRWAYS' 300 MILLION INVESTMENT IN STRUGGLING USAIR GROUP INC IN A MOVE THAT GIVES THE US LEVERAGE IN ITS BID TO RENEGOTIATE ITS BILATERAL AVIATION AGREEMENT WITH THE UK THE ADMINISTRATION ALSO AUTHORIZED FOR ONE YEAR A COMPUTERRESERVATION CODESHARING AGREEMENT LINKING USAIR'S DOMESTIC MARKETS TO BRITISH AIRWAYS' INTERNATIONAL DESTINATIONS AND A USAIR PLAN TO LEASE AIRCRAFT AND CREWS TO THE BRITISH CARRIER FOR TWO TRANSATLANTIC ROUTES THE BIG THREE US CARRIERS HAVE OPPOSED THE PACT CONTENDING IT WOULD WEAKEN THE US NEGOTIATING POSITION BUT TRANSPORTATION SECRETARY FEDERICO PENA POINTEDLY LINKED APPROVAL OF THE FIRST INSTALLMENT OF BRITISH AIRWAYS' PLANNED 750 MILLION INVESTMENT IN USAIR IN THE NEXT FIVE YEARS TO THE PURSUIT OF A BILATERAL AGREEMENT MORE TO THE LIKING OF THE BIG THREE WHICH HAVE BEEN CLAMORING FOR GREATER ACCESS TO LONDON'S HEATHROW AIRPORT AND OTHER BRITISH MARKETS AT A NEWS CONFERENCE HERE YESTERDAY MR PENA DESCRIBED THE 300 MILLION INVESTMENT AS THE HOOK FOR DRAWING THE BRITISH INTO A SOCALLED OPEN SKIES AGREEMENT THAT WOULD ALLOW US AND BRITISH AIRLINES TO COMPETE ON EQUAL FOOTING ON BOTH SIDES OF THE ATLANTIC FOR NOW 300 MILLION BUYS BRITISH AIRWAYS 246 OF USAIR'S TOTAL EQUITY AND INITIALLY 199 OF ITS VOTING STOCK BUT ONLY A LIMITED VOICE ON THE AIRLINE'S BOARD THE ADMINISTRATION'S STRATEGY IS TO HOLD THAT INVESTMENT HOSTAGE AS ONE OFFICIAL PUT IT WHILE NEGOTIATING WITH THE BRITISH IN A FUNNY WAY MR PENA SAID APPROVAL OF PHASE ONE BINDS THE PARTIES TO WORK TOWARD AN AMICABLE RESOLUTION OF THEIR DIFFERENCES AFTER THE ANNOUNCEMENT YESTERDAY USAIR SHARES ROSE 625 CENTS TO CLOSE AT 17 IN LATE NEW YORK STOCK EXCHANGE TRADING USAIR AND BRITISH AIRWAYS OFFICIALS WERE JUBILANT OVER THE DECISION IT EXTENDS THE BRITISH AIRLINE'S REACH INTO THE US THE LARGEST AVIATION MARKET IN THE WORLD AND GIVES USAIR A STRONG PARTNER IN THE GLOBAL DOGFIGHT FOR MARKET SHARE IN ARLINGTON VA USAIR CHAIRMAN SETH E SCHOFIELD PRAISED SECRETARY PENA FOR RECOGNIZING THAT THE AGREEMENTS MEET EVERY TEST OF THE LAW AND ARE IN COMPLETE ACCORD WITH THE CURRENT AIR TREATY BETWEEN THE US AND THE UK THE CODESHARING PACT HE SAID WILL PROVIDE USAIR CUSTOMERS IN 38 CITIES WITH SEAMLESS SERVICE TO TRANSATLANTIC GATEWAYS SERVED BY BRITISH AIRWAYS THAT WILL ALLOW ONETIME PASSENGER CHECKINS AND THROUGHBAGGAGE CHECKS BETWEEN INTERIOR US CITIES AND THE UK AS WELL AS SIMPLER RESERVATIONS AND FARE QUOTES IN LONDON ROGER MAYNARD DIRECTOR OF CORPORATE STRATEGY FOR BRITISH AIRWAYS CALLED THE DECISION A MOST IMPORTANT BREAKTHROUGH HE WOULDN'T SAY HOW MUCH ADDITIONAL REVENUE BRITISH AIRWAYS HOPES TO GAIN FROM HAVING A FEEDER AND DISTRIBUTOR IN THE LUCRATIVE US MARKET BUT HE DESCRIBED THE USAIR ALLIANCE AS A FUNDAMENTAL PART OF OUR GLOBAL STRATEGY HE SAID IT WILL HELP BRITISH AIRWAYS COMPETE WITH THE US MEGACARRIERS AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIR LINES AND DELTA AIR LINES THE DECISION WAS A MAJOR SETBACK FOR THE BIG THREE AIRLINES WHICH HAD LOBBIED THE ADMINISTRATION TO PUT OFF THE DECISION AT LEAST UNTIL A BLUERIBBON COMMISSION ON AIRLINES HAD A CHANCE TO REVIEW SUCH ISSUES AS FOREIGN OWNERSHIP OF US CARRIERS AND BILATERAL AVIATION TREATIES CONGRESS IS EXPECTED TO CREATE SUCH A COMMISSION WITHIN A WEEK OR SO AMR CHAIRMAN ROBERT CRANDALL UAL CHAIRMAN STEPHEN WOLF AND DELTA CHAIRMAN RONALD ALLEN EXPRESSED DISAPPOINTMENT IN THE CODESHARING DECISION ARGUING IT WILL ALLOW BRITISH AIRWAYS TO CAPTURE US TRAFFIC WITHOUT RECIPROCAL OPPORTUNITIES FOR US CARRIERS IN BRITISH MARKETS MR CRANDALL SAID THE US COULD HAVE OBTAINED GREATER LEVERAGE IN NEGOTIATIONS WITH THE BRITISH BY DECLARING ITS INTENTION TO RENOUNCE THE CURRENT UNBALANCED AGREEMENT ALTOGETHER MR WOLF URGED JOHN MACGREGOR BRITISH SECRETARY OF STATE FOR TRANSPORT TO MOVE QUICKLY TO CREATE AN OPEN SKIES AGREEMENT THAT ALLOWS CARRIERS FROM BOTH COUNTRIES TO COMPETE ON AN EQUAL BASIS A SPOKESMAN FOR THE BRITISH EMBASSY HERE WELCOMED THE ADMINISTRATION'S DECISION THE UK SHARES THE US GOVERNMENT'S DESIRE TO LIBERALIZE OUR BILATERAL AGREEMENT AND HOPES NEGOTIATIONS CAN RESUME BEFORE TOO LONG HE SAID MR PENA SAID HE PLANS TO MEET WITH MR MACGREGOR SOMETIME NEXT MONTH BY GRANTING ONLY ONEYEAR APPROVAL TO THE CODESHARING AND LEASING ARRANGEMENTS THE ADMINISTRATION IS TRYING TO GIVE ITSELF ADDED LEVERAGE IN THE COMING TALKS IN THE MEANTIME MR PENA EMPHASIZED THAT THE US HAS NO CHOICE BUT TO HONOR THE CURRENT USUK AGREEMENT UNSATISFACTORY OR NOT IF IT EXPECTS JAPAN AUSTRALIA AND OTHER NATIONS TO ABIDE BY THEIR BILATERAL AGREEMENTS WITH WASHINGTON CURRENTLY THE U S IS AT LOGGERHEADS WITH THE JAPANESE AND AUSTRALIANS BECAUSE THEY ARE TRYING TO DENY US CARRIERS RIGHTS TO FLY BEYOND JAPAN IN VIOLATION OF BILATERAL PROVISIONS US OFFICIALS CONTEND BRITISH AIRWAYS HAD ORIGINALLY PLANNED TO MAKE A SINGLE 750 MILLION INVESTMENT IN RETURN FOR 21 VOTING CONTROL BELOW THE STATUTORY CAP OF 25 ON FOREIGN OWNERSHIP OF VOTING STOCK BUT ONE PROVISION WOULD HAVE GIVEN BRITISH AIRWAYS VETO POWER OVER CERTAIN KEY DECISIONS BY THE USAIR BOARD IN THE FACE OF BUSH ADMINISTRATION OPPOSITION BRITISH AIRWAYS ABANDONED THE PLAN IN DECEMBER THE DAY AFTER PRESIDENT CLINTON TOOK OFFICE THE BRITISH CARRIER ANNOUNCED ITS THREEPHASE PLAN BEGINNING WITH A 300 MILLION INJECTION INTO USAIR IN RETURN FOR PREFERRED STOCK AND THE RIGHT TO APPOINT THREE OF 16 USAIR DIRECTORS BRITISH AIRWAYS'S VOTING CONTROL IS TO RISE TO 218 FROM 199 IN MAY WHEN USAIR SHAREHOLDERS ARE EXPECTED TO APPROVE THE PLAN AT THE COMPANY'S ANNUAL MEETING UNDER THE PLAN THE PREFERRED STOCK CAN BE CONVERTED TO COMMON STOCK AT 1950 A SHARE AFTER FOUR YEARS THE STOCK MEANWHILE WOULD PAY BRITISH AIRWAYS A 7 ANNUAL DIVIDEND BUT MR PENA EMPHASIZED THE SECOND AND THIRD INVESTMENTS WOULD BE CONTINGENT ON CONGRESSIONAL ACTION RAISING THE 25 CAP ON FOREIGN OWNERSHIP OF VOTING STOCK FOR CONGRESS TO DO SO HE SAID THE US MUST HAVE TREMENDOUS ASSURANCES THAT A LEVEL PLAYING FIELD HAS BEEN ESTABLISHED AND OPEN SKIES HAVE BECOME A REALITY AS A RESULT OF YESTERDAY'S ACTION USAIR WILL BE ABLE TO FURNISH CREWS AND AIRCRAFT FOR BRITISH AIRWAYS FLIGHTS BETWEEN LONDON AND BALTIMORE AND BETWEEN LONDON AND PITTSBURGH THE ADMINISTRATION REJECTED A SIMILAR WETLEASE ARRANGEMENT BETWEEN LONDON AND CHARLOTTE NC BECAUSE BRITISH AIRWAYS DOESN'T HAVE PERMISSION TO SERVE THAT MARKET THE NEW PARTNERS WILL BEGIN CODESHARING MAY 1 THE FIRST FLIGHTS TO BE LISTED ON RESERVATION SYSTEMS AS BOTH BRITISH AIRWAYS AND USAIR FLIGHTS WILL BE FROM CLEVELAND ROCHESTER NY AND SYRACUSE NY THROUGH PHILADELPHIA TO LONDON ACCORDING TO BRITISH AIRWAYS' MR MAYNARD THE TWO AIRLINES ALSO WILL BEGIN EXPLORING WAYS OF JOINTLY CUTTING COSTS BRIAN COLEMAN IN BRUSSELS AND BRIDGET O'BRIAN IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9303160074 930316 BUSINESS BRIEF NATIONAL MEDICAL ENTERPRISES INC REHABILITATION HOSPITAL UNIT CUTS 25 OF ITS WORK FORCE NATIONAL MEDICAL ENTERPRISES INC SANTA MONICA CALIF SAID ITS REHABILITATION HOSPITAL DIVISION CUT 183 JOBS OR 25 OF ITS WORK FORCE MAINLY IN NEW HAMPSHIRE NEW JERSEY AND PENNSYLVANIA THERE AREN'T ANY IMMEDIATE PLANS FOR FURTHER CUTS A SPOKESMAN SAID BUT HE ADDED OUR OVERHEAD AT EVERY LEVEL OF THE COMPANY IS A FLUID ISSUE NOTHING IS ETCHED IN STONE THERE IS A SENSE HERE THAT THE COST OF DOING BUSINESS IS AN ISSUE THAT NEEDS TO BE ADDRESSED TO RESPOND TO RAPID CHANGES IN HEALTHCARE MARKETS THE JOB CUTS EFFECTIVE EARLIER THIS MONTH CAME IN THE WAKE OF AN OPERATIONS REVIEW THAT BEGAN LAST JUNE IN THE REHAB DIVISION NATIONAL MEDICAL IS RESPONDING TO CUSTOMERS' DEMANDS THAT MORE REHAB PATIENTS RECEIVE TREATMENT WITHOUT BEING HOSPITALIZED THE SPOKESMAN SAID IN THE SECOND QUARTER ENDED NOV 30 THE REHAB DIVISION'S OPERATING PROFIT BEFORE INTEREST FELL 44 TO 18 MILLION NET INCOME FOR ALL OF NATIONAL MEDICAL FELL 26 TO 524 MILLION OR 32 CENTS A SHARE NATIONAL MEDICAL WHICH ALSO OPERATES PSYCHIATRIC AND GENERAL HOSPITALS HAS ABOUT 50000 EMPLOYEES 9303160073 930316 BUSINESS BRIEF FRAME TECHNOLOGY CORP SOFTWARE CONCERN EXPECTS TO POST LOSS STOCK PLUNGES FRAME TECHNOLOGY CORP SHARES PLUNGED 36 ON NEWS THAT THE MAKER OF DOCUMENT SOFTWARE EXPECTS TO POST A FIRSTQUARTER LOSS AND THAT REVENUE FOR THE PERIOD WOULD BE 15 TO 20 BELOW MARKET EXPECTATIONS OF 205 MILLION FRAME TECHNOLOGY'S SHARES FELL 4375 TO 7875 IN OVERTHECOUNTER TRADING THE SAN JOSE CALIF CONCERN BLAMED THE DISAPPOINTING RESULTS ON LOWERTHANEXPECTED PRODUCT SELLTHROUGH IN NORTH AMERICA IN RESPONSE FRAME TECHNOLOGY PLANS TO REVAMP ITS DOMESTIC SALES EFFORT FORMING A NEW DIVISION TO PURSUE CORPORATE SALES DIRECTLY IN THE YEARAGO PERIOD THE COMPANY EARNED 770000 OR SEVEN CENTS A SHARE ON REVENUE OF 133 MILLION FRAME TECHNOLOGY WENT PUBLIC ABOUT A YEAR AGO AND ITS STOCK REACHED A HIGH OF 2650 SHORTLY AFTER ITS INITIAL OFFERING SINCE THEN THE COMPANY'S SHARES HAVE TRENDED STEADILY DOWNWARD MAKING FRAME TECHNOLOGY A BIG DISAPPOINTMENT SAID RUSSELL CRABS DIRECTOR OF RESEARCH AT SOUNDVIEW FINANCIAL GROUP 9303160072 930316 BLIZZARD'S COST TO INSURERS PUT AT 800 MILLION EARLY ESTIMATES INDICATE SOUTH WAS HIT HARDEST BY WEEKEND WEATHER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE STORM THAT RAVAGED THE EAST COAST OVER THE WEEKEND KILLING MORE THAN 150 PEOPLE WILL COST INSURERS ABOUT 800 MILLION ACCORDING TO A PRELIMINARY ESTIMATE BY AM BEST CO THE HEAVY LOSSES PUSHED UP PRICES OF SEVERAL PROPERTY AND CASUALTY INSURANCE STOCKS PRESUMABLY ON EXPECTATIONS THAT INSURERS WILL RAISE THEIR RATES AND PROMPTED FEARS THAT INSURERS WILL BECOME EVEN MORE WARY ABOUT INSURING HOMES IN COASTAL AREAS THE STORM THAT STARTED IN THE SOUTH AND SWEPT UP THE COAST LEFT THE NORTHEAST SNOWBOUND FOR TWO DAYS BUT DID ITS GREATEST PROPERTY DAMAGE IN THE SOUTH WHERE HEAVY WINDS AND SUBFREEZING TEMPERATURES BURST PIPES AND TORE OFF ROOFS CAUSING WATER DAMAGE TO WALLS AND FURNITURE STATE FARM MUTUAL AUTOMOBILE INSURANCE CO THE COUNTRY'S BIGGEST PROPERTY INSURER DISPATCHED 265 EXTRA CLAIMS ADJUSTERS 165 TO FLORIDA ALONE TO EVALUATE LOSSES AND WRITE CHECKS TO POLICYHOLDERS LIKE MOST OTHER INSURERS STATE FARM BASED IN BLOOMINGTON ILL SAID IT WAS TOO EARLY TO ESTIMATE ITS LOSSES BUT NATIONWIDE MUTUAL INSURANCE CO COLUMBUS OHIO SAID IT EXPECTS TO PAY 37 MILLION ON 15000 CLAIMS MORE THAN HALF OF WHICH WILL COME FROM FLORIDA BY COMPARISON NATIONWIDE LOST 12 MILLION ON DECEMBER'S NORTHEAST STORM WHICH COST THE INSURANCE INDUSTRY 650 MILLION SNOW FORCED NATIONWIDE TO CLOSE REGIONAL OFFICES IN SYRACUSE NY AND HARRISBURG PA CREATING A LOGJAM FOR ITS BACKUP SYSTEM THAT RECEIVES POLICYHOLDER CLAIMS PRINTERS IN MANY OFFICES WERE GOING WILD SAID KEN ENSCOE THE COMPANY'S DISASTER COORDINATOR USAA GROUP A SAN ANTONIOBASED INSURER SAID IT HAS ALREADY RECEIVED 10000 CLAIMS FROM THE BLIZZARD AND EXPECTS MORE THE COMPANY RECEIVED 23000 CLAIMS WITH HURRICANE ANDREW BUT THE AVERAGE CLAIM WAS FAR COSTLIER THAN IN THE LATEST STORM AETNA LIFE & CASUALTY CORP HAS SO FAR RECEIVED 1500 CLAIMS MOSTLY FROM FLORIDA THE HARTFORD CONN COMPANY RECEIVED 1800 CLAIMS IN DECEMBER'S NORTHEAST STORM RESULTING IN A 27 MILLION LOSS THE LATEST STORM FOLLOWS THREE YEARS OF UNPRECEDENTED LOSSES FOR THE INSURANCE INDUSTRY HURRICANE ANDREW ALONE CAUSED MORE THAN 16 BILLION OF DAMAGE THE INDUSTRY HAS BEEN UNDER SIEGE WITH CATASTROPHES SAID AM BEST SENIOR VICE PRESIDENT JOHN SNYDER SOME ANALYSTS BELIEVE THE HIGH LOSSES WILL PROMPT INSURERS TO CHARGE MORE FOR COVERAGE THUS ENDING THE DOWNWARD CYCLE THAT HAS PULLED DOWN INDUSTRY PROFITS SINCE 1987 THESE LOSSES IN CONJUNCTION WITH OTHERS INCLUDING THE WORLD TRADE CENTER BLAST HAVE MADE INVESTORS BELIEVE THAT A CYCLE TURN IS MORE IMMINENT SAID KIDDER PEABODY & CO ANALYST STEVEN GAVIOS DAMAGE FROM THE BOMB THAT RIPPED THROUGH THE WORLD TRADE CENTER LAST MONTH IS EXPECTED TO COST INSURERS MORE THAN 1 BILLION SINCE HURRICANE ANDREW REINSURANCE PRICES HAVE SOARED AND PROPERTYINSURANCE PRICES HAVE BEEN MIXED CASUALTY INSURANCE PRICES HAVE BEEN FLAT AND IN SOME CASES DECLINED MR GAVIOS BELIEVES INSURERS EVENTUALLY WILL END THEIR STRUGGLE TO MAINTAIN MARKET SHARE AND RAISE PRICES ACROSS ALL LINES TO RECOVER THE 40 BILLION IN CATASTROPHE LOSSES SINCE 1989 ON THE NEW YORK STOCK EXCHANGE AMERICAN INTERNATIONAL GROUP INC CLOSED AT 12375 UP 1125 GENERAL RE CORP CLOSED AT 11950 UP 275 AND MARSH & MCLENNAN COS CLOSED AT 93625 UP 1125 SEAN MOONEY ECONOMIST FOR THE INSURANCE INFORMATION INSTITUTE SAID THE STORM ADDS TO INSURANCEINDUSTRY NERVOUSNESS ABOUT COASTAL COVERAGE THERE ARE GROWING STRAINS HE SAID FOLLOWING HURRICANE ANDREW A NUMBER OF COMPANIES BEGAN TO RESTRICT COVERAGE NOT ONLY IN FLORIDA BUT AS FAR NORTH AS NEW YORK AND CONNECTICUT THEY HAVE PULLED BACK BECAUSE OF A SHORTAGE OF REINSURANCE WHICH IS INSURANCE FOR INSURANCE COMPANIES 9303160071 930316 COMMODITIES HOG AND GRAIN PRICES SURGE AMID US FOOD AID TO RUSSIA TIGHTERTHANEXPECTED MEAT SUPPLIES BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO HOG AND GRAIN PRICES RALLIED ON A COMBINATION OF TIGHTERTHANEXPECTED MEAT SUPPLIES AND US FOOD AID TO RUSSIA HOG FUTURES PRICES HAVE CLIMBED ABOUT 16 SO FAR THIS YEAR ON SIGNALS THAT THE LONG EXPANSION OF THE US HERD IS RUNNING OUT OF STEAM ONE SIGN IS THAT THE SUPPLY OF HOGS READY FOR SLAUGHTER HAS UNEXPECTEDLY FALLEN BELOW YEARAGO LEVELS LAST WEEK US MEATPACKERS KILLED 37 FEWER HOGS THAN THEY DID FOR THE SIMILAR 1992 WEEK IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE YESTERDAY THE HOG CONTRACT FOR APRIL DELIVERY ROSE 117 CENTS A POUND TO SETTLE AT 4907 CENTS A POUND HOG PRICES WERE ALSO LIFTED BY RUMORS THAT THE WHITE HOUSE IS COMING CLOSER TO DONATING US PORK TO RUSSIA SPECULATION INTENSIFIED IN THE WAKE OF THE CLINTON ADMINISTRATION'S ANNOUNCEMENT FRIDAY THAT IT WILL DONATE 520000 METRIC TONS OF WHEAT TO RUSSIA AND 200000 METRIC TONS OF CORN TO BELARUS US GRAIN PRICES HAVE BEEN IN A SLUMP THIS WINTER IN PART BECAUSE RUSSIA HASN'T IMPORTED A SIGNIFICANT AMOUNT OF US CROPS SINCE MOSCOW BEGAN DEFAULTING ON USGUARANTEED GRAIN LOANS MOSCOW HAS MISSED 5164 MILLION IN PAYMENTS ON THE 42 BILLION IN THREEYEAR LOANS THAT IT AND THE FORMER SOVIET UNION ARRANGED UNDER THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM SEVERAL BANKS HAVE FILED CLAIMS AGAINST THE US GOVERNMENT FOR THE SOUR DEBT BECAUSE THE DEPARTMENT PROMISED TO MAKE GOOD ON THE LOANS IF MOSCOW FELL BEHIND THE AGRICULTURE DEPARTMENT SAID DENVERBASED NATIONAL BANK FOR COOPERATIVES FILED CLAIMS TOTALING 1163 MILLION COBANK WAS THE LARGEST US LENDER TO MOSCOW THROUGH THE CREDIT GUARANTEE PROGRAM AND IS PART OF THE FEDERALLY CHARTERED FARMEROWNED FARM CREDIT SYSTEM AMONG OTHER THINGS COBANK ARRANGES FINANCING FOR EXPORTS BY FARMEROWNED COOPERATIVES HOG PRICES MIGHT SWING WIDELY FOR THE NEXT FEW WEEKS AS TRADERS TRY TO FIGURE OUT WHY HOG SUPPLIES ARE TIGHTER THAN EXPECTEDAND HOW LONG THIS MIGHT LAST THE CLEAREST EXPLANATION PROBABLY WON'T COME UNTIL MARCH 26 WHICH IS WHEN THE AGRICULTURE DEPARTMENT IS SLATED TO RELEASE ITS QUARTERLY SURVEY OF THE US HOG AND PIG POPULATION SOME LIVESTOCK ANALYSTS SAID PRELIMINARY INDICATIONS ARE THAT THE GOVERNMENT'S MARCH 1 CENSUS DETECTED A 1 RISE IN THE HOG POPULATION COMPARED WITH MARCH 1 1992 SUCH A REPORT WOULD SIGNAL THE HERD EXPANSION THAT BEGAN IN LATE 1990 MIGHT BE WINDING DOWN STILL A FEW TRADERS ARE WONDERING WHETHER THE OPPOSITE MIGHT BE ABOUT TO HAPPEN HOG FARMERS TEND TO INCREASE THEIR HERDS WHEN GRAIN PRICES ARE CHEAP BECAUSE CORN IS A MAJOR INGREDIENT IN LIVESTOCK RATIONS ACCORDING TO THESE TRADERS THE DROP IN SLAUGHTER MIGHT REFLECT FARMERS RETAINING ANIMALS FOR BREEDING PURPOSES THE UNCERTAINTY IS PROMPTING SOME SMALL SPECULATORS TO MOVE TO THE SIDELINES BEFORE THE RELEASE OF THE GOVERNMENT SURVEY THIS IS A REAL DANGEROUS REPORT AS FAR AS SPECULATORS GO SAID DAN VAUGHT AN ANALYST AT AG EDWARDS & SONS ST LOUIS IN OTHER COMMODITY MARKETS ENERGY PETROLEUM FUTURES PRICES COULDN'T SUSTAIN AN EARLY BLIZZARDRELATED RALLY AND ENDED THE DAY LOWER IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE TRADERS BROKERS AND ANALYSTS SAID THE LETHAL STORM THAT PARALYZED MUCH OF THE EASTERN US OVER THE WEEKEND HAPPENED TOO LATE IN THE WINTER HEATING SEASON TO OFFER ANY SUPPORT AN EARLY RUNUP QUICKLY FADED AND PRICES SLID APRIL CRUDE LOST 13 CENTS A BARREL TO FINISH AT 2016 AND WITH CRUDE HOVERING SO NEAR 20 A BARREL SOME MARKET PLAYERS PREDICT THAT EVEN THE SLIGHTEST BEARISH TINGE TO TODAY'S INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE WILL PUSH PRICES BELOW THAT PSYCHOLOGICALLY IMPORTANT LEVEL HEATING OIL FOR APRIL DELIVERY LOST NEARLY A PENNY 092 CENT TO SETTLE AT 5728 CENTS A GALLON WHILE APRIL GASOLINE FELL 054 CENT TO 58 CENTS A GALLON THE EXCEPTION TO THE RULE IN ENERGY TRADING WAS NATURAL GAS WHICH GAINED FIVE CENTS PER MILLION BRITISH THERMAL UNITS FOR APRIL TO CLOSE AT 1965 A MILLION BTU IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS MARKET WATCHERS SAID THE NATURALGAS CONTRACT BENEFITED FROM WEATHERRELATED BUYING AND FROM WEATHERRELATED PROBLEMS AT A PIPELINE SERVING THE NORTHEASTERN US COPPER FUTURES PRICES FAILED TO EXTEND LAST WEEK'S RALLY THE ACTIVELY TRADED MAY CONTRACT ENDED 195 CENTS LOWER AT 9670 CENTS A POUND COPPER CAN'T STAND PROSPERITY SAID BERNARD SAVAIKO A SENIOR METALS ANALYST WITH PAINEWEBBER I THINK IT'S IRONIC THAT COPPER MOVED LOWER IN THE OPPOSITE DIRECTION OF THE COMMODITY RESEARCH BUREAU INDEX OF 21 FUTURES CONTRACTS HE SD A SHARP RISE IN THE CRB INDEX ACCORDING TO MANY ECONOMISTS IS A HARBINGER OF AN EXPANDING ECONOMY AND COPPER A WIDELY USED INDUSTRIAL METAL TENDS TO BENEFIT FROM STRONG SPURTS OF ECONOMIC GROWTH THE RECENT RISE IN THE CRB INDEX TO 21019 YESTERDAY HAS BEEN SPURRED HOWEVER LARGELY BY STRENGTH IN AGRICULTURAL COMMODITIES INCLUDING LIVESTOCK GRAINS SUGAR AND COCOA MR SAVAIKO PREDICTED THAT UNTIL US INDUSTRIAL DEMAND SHOWS REAL STRENGTH MAY COPPER FUTURES PRICES WILL REMAIN IN A TIGHT RANGE OF 94 TO 98 CENTS OR WELL BELOW THE 1APOUND RESISTANCE LEVEL US ECONOMIC RECOVERY IS BEING OFFSET BY CONTRACTING ECONOMIES IN GERMANY AND JAPAN COPPER WILL HAVE TREMENDOUS DIFFICULTY GETTING UP ABOVE 1 BECAUSE OF THE SLOWDOWN IN EUROPE AND JAPAN MR SAVAIKO SAID 9303160070 930316 LAW SECRET SERVICE HELD GUILTY OF VIOLATING COMPUTER PRIVACY BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL COURT IN AUSTIN TEXAS RULED THAT THE US SECRET SERVICE VIOLATED PRIVACY LAWS IN SEIZING AN ELECTRONIC BULLETIN BOARD ELECTRONIC MAIL AND COMPUTER RECORDS FROM A COMPUTER GAMES MAKER THREE YEARS AGO FEDERAL JUDGE SAM SPARKS ALSO RULED THAT THE SECRET SERVICE CONTRARY TO GOVERNMENT DENIALS HAD READ DISCLOSED AND ERASED MESSAGES ON THE BULLETIN BOARD IT SEIZED IN VIOLATION OF THE ELECTRONIC COMMUNICATIONS PRIVACY ACT THOUGH THE RULING IS NOT AS CLEAR AS WE'D HAVE LIKED IT'S THE FIRST OPINION I KNOW OF THAT HOLDS THAT ELECTRONIC COMMUNICATIONS ON A BULLETIN BOARD ARE PROTECTED BY THE FEDERAL PRIVACY PROTECTION ACT SAID PETER KENNEDY ATTORNEY FOR STEVE JACKSON GAMES OF AUSTIN THE PLAINTIFF IN THE CASE JUSTICE DEPARTMENT ATTORNEYS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT THE CASE WHICH PROVOKED FIERCE DEBATE OVER HOW WIDELY THE GOVERNMENT CAN CAST ITS NET IN COMBATING COMPUTER CRIME LED TO THE FOUNDING OF A COMPUTERUSER'S RIGHTS GROUP THE ELECTRONIC FRONTIER FOUNDATION WHICH SPONSORED THE SUIT AGAINST THE GOVERNMENT YESTERDAY THE FOUNDATION HAILED THE VERDICT THIS CASE SHOULD SEND A MESSAGE TO LAWENFORCEMENT GROUPS EVERYWHERE THAT THEY CAN'T IGNORE THE RIGHTS OF THOSE WHO COMMUNICATE BY COMPUTER SAID MIKE GODWIN THE FOUNDATION'S COUNSEL IN MARCH 1990 THE SECRET SERVICE WAS TRACKING A 911 PROGRAM THAT AGENTS BELIEVED COMPUTER HACKERS HAD STOLEN FROM BELLSOUTH AGENTS SAYING THEY SUSPECTED THAT AN EMPLOYEE OF STEVE JACKSON'S WAS INVOLVED RAIDED THE COMPANY UNDER A WARRANT ISSUED BY THE LOCAL US MAGISTRATE THEY SEIZED COMPUTER EQUIPMENT AN ELECTRONIC BULLETIN BOARD AND FILES THAT CONTAINED A COMPUTER GAME THE COMPANY HAD BEEN ABOUT TO PUBLISH THE SERVICE HELD ONTO THE PROPERTY FOR MONTHS AND DESTROYED SOME OF THE FILES AND ELECTRONIC MESSAGES IN HIS OPINION JUDGE SPARKS SAID THERE WAS NEVER ANY BASIS FOR SUSPICION THAT THE COMPANY OR ITS OWNER STEVE JACKSON HAD BROKEN ANY LAWS AND THAT IF AGENTS HADN'T BEEN SO SLOPPY IN THEIR INVESTIGATION THEY WOULD HAVE REALIZED THAT THE COMPANY WAS A LEGITIMATE PUBLISHER ENTITLED TO THE PROTECTION OF THE PRIVACY PROTECTION ACT THAT ACT SHIELDS FILES AND WORK RECORDS OF NEWSPAPERS BROADCASTERS AND PUBLISHERS FROM GOVERNMENT SEARCH OR SEIZURE JUDGE SPARKS DID SUPPORT THE SECRET SERVICE'S CONTENTION ON A SEPARATE COUNT THAT DESPITE SEIZING AND READING ELECTRONIC MESSAGES ON THE BULLETIN BOARD IT HADN'T INTERCEPTED THEM UNDER THE MEANING OF THE ELECTRONIC COMMUNICATIONS PRIVACY ACT HE AWARDED MR JACKSON HIS COMPANY AND THREE BULLETIN BOARD USERS A TOTAL OF ABOUT 55000 PLUS ATTORNEY'S FEES 9303160069 930316 BUSINESS BRIEF KUHLMAN CORP SALARIED WORK FORCE FACES CUTBACK TOTALING ABOUT 19 KUHLMAN CORP CITING LOWER SALES SAID IT WILL SLASH ITS SALARIED WORK FORCE BY 54 PEOPLE OR ABOUT 19 KUHLMAN WHICH MAKES DISTRIBUTION POWER AND INSTRUMENT TRANSFORMERS AS WELL AS SPRING PRODUCTS SAID IT IS CUTTING SALARIED POSITIONS AS PART OF A BROADER EFFORT TO REDUCE OPERATING COSTS BECAUSE MANY CUSTOMERS ARE FACING DIFFICULT ECONOMIC CONDITIONS ROBERT S JEPSON JR THE COMPANY'S RECENTLY NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT THE CUTS WILL COME FROM EARLY RETIREMENTS TERMINATIONS AND LAYOFFS A SPOKESMAN SAID KUHLMAN WHICH IS BASED IN LEXINGTON KY EMPLOYS A TOTAL OF 858 INCLUDING 291 SALARIED EMPLOYEES WALTER KIRCHBERGER AN ANALYST WITH PAINE WEBBER SAID KUHLMAN HAD A SOMEWHAT SOFT 1992 IN PART BECAUSE OF A SOO ECONOMY IN WHICH THE COMPANY HAD TO CONTEND WITH COMPETITIVE PRICING AND PRESSURE FROM PURCHASING AGENTS IN 1992 KUHLMAN EARNED 62 MILLION OR 105 A SHARE ON SALES OF 1217 MILLION COMPARED WITH 1991 NET OF 72 MILLION OR 121 A SHARE ON SALES OF 1262 MILLION 9303160068 930316 CORRECTIONS & AMPLIFICATIONS GILEAD SCIENCES INC RESEARCHERS USED THEIR OWN TECHNIQUE TO EVOLVE IN THE TEST TUBE A DNA DRUG TO BLOCK THE FORMATION OF BLOOD CLOTS ACCORDING TO GILEAD PRESIDENT MICHAEL RIORDAN A FEB 25 ARTICLE STATED THAT GILEAD SCIENTISTS HAD USED A MOLECULAR EVOLUTION TECHNIQUE DEVELOPED BY BIOLOGIST LARRY GOLD OF THE UNIVERSITY OF COLORADO IN AN ARTICLE FRIDAY ABOUT CHAMBERS DEVELOPMENT CO THE PREFIX NON WAS INADVERTENTLY LEFT OUT OF A QUOTE ATTRIBUTED TO ANALYST DOUGLAS AUGENTHALER OF OPPENHEIMER & CO MR AUGENTHALER'S QUOTE SHOULD HAVE READ THE BANKS ARE GIVING THEM SUCH A HARD TIME THEY HAVE TO RAISE WHATEVER CASH THEY CAN WITH NONCORE OPERATIONS CHAMBERS HAS DENIED THAT THE BANKS ARE FORCING THE SALE OF ANY OPERATIONS 9303160067 930316 BUSINESS BRIEF UTILICORP UNITED INC UTILITY SEES FIRSTPERIOD NET JUMPING 21 CITES WEATHER UTILICORP UNITED INC SAID ITS FIRSTQUARTER PROFIT IS EXPECTED TO RISE 21 TO 347 MILLION OR 87 CENTS A SHARE FROM 286 MILLION OR 77 CENTS A SHARE A YEAR AGO THE KANSAS CITY MO UTILITY HOLDING COMPANY SAID THE IMPROVEMENT IS PRIMARILY DUE TO THE RETURN OF NORMAL WINTER WEATHER CONDITIONS THROUGHOUT ITS SERVICE TERRITORIES INCOME FROM ITS MOST RECENT GAS UTILITY ACQUISITION AND RATE RELIEF REVENUE FOR THE PERIOD IS EXPECTED TO RISE 31 TO 478 MILLION FROM 366 MILLION 9303160066 930316 BUSINESS BRIEF WESTWOOD GROUP INC HORSE DOG RACING OPERATOR CANNOT MEET INTEREST DUE WESTWOOD GROUP INC SAID IT WOULDN'T BE ABLE TO MAKE AN INTEREST PAYMENT DUE YESTERDAY ON 196 MILLION IN BOND OBLIGATIONS BOSTONBASED WESTWOOD WHICH OPERATES HORSE AND DOG RACING ESTABLISHMENTS IN MASSACHUSETTS OWNS A 40 INTEREST IN BACK BAY RESTAURANT GROUP INC A BOSTONBASED RESTAURANT CHAIN WHOSE STOCK IS PUBLICLY TRADED BACK BAY HAD 1992 NET INCOME OF 26 MILLION OR 80 CENTS A SHARE ON SALES OF 644 MILLION WESTWOOD SAID IT NOTIFIED STATE STREET BANK & TRUST CO TRUSTEE FOR WESTWOOD'S 1425 SUBORDINATED DEBENTURES THAT IT WOULDN'T MAKE THE INTEREST PAYMENT WESTWOOD SAID THAT IT'S DEVELOPING A RESTRUCTURING PLAN FOR THE 196 MILLION OBLIGATION I AM OPTIMISTIC THAT WE WILL WORK OUT A PLAN WHICH WILL BE ACCEPTABLE BY ALL BONDHOLDERS SAID RICHARD DALTON WESTWOOD'S PRESIDENT IN A NEWS RELEASE OFFICIALS AT WESTWOOD AND BACK BAY COULDN'T BE REACHED FOR COMMENT 9303160065 930316 TECHNOLOGY BRIEF US ROBOTICS INC PRICES OF SPORTSTER MODEM FAX TO BE CUT UP TO 52 US ROBOTICS INC SAID IT IS CUTTING PRICES ON ITS SPORTSTER LINE OF FAX AND DATA MODEMS BY AS MUCH AS 52 THE SKOKIE ILL COMPANY SAID THE CUTS FOLLOW A REDESIGN OF THE LINE THAT HAS LOWERED ITS MANUFACTURING COSTS THE COMPANY'S SPORTSTER MODEMS WHICH NOW RANGE IN PRICE FROM 119 TO 329 ARE AIMED AT HOMEOFFICE COMPUTER USERS AND SMALL BUSINESSES THE MODEM PRICE CUTS COME AMID DEEP PRICECUTTING IN THE PERSONAL COMPUTER BUSINESS WHICH US ROBOTICS OFFICIALS SAY HAS FREED UP EXTRA SPENDING FOR PC PERIPHERAL EQUIPMENT SUCH AS MODEMS FAX BOARDS AND COLOR MONITORS THE RECENT ROUND OF PRICE CUTS OFFICIALS SAY IS AIMED AT HELPING US ROBOTICS BOOST ITS SHARE OF THAT EXTRA BUSINESS THE GOAL IS TO EXPAND THE SIZE OF THE MARKET SAID JON ZAKIN THE COMPANY'S EXECUTIVE VICE PRESIDENT 9303160064 930316 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 2 7/8 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP310 30 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 IN MULTIPLES OF 1000 318 30 DAYS 319 60 DAYS 320 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 310 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 304 90 DAYS 308 120 DAYS 311 150 DAYS 312 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 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 753 60 DAYS 763 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 748 60 DAYS 758 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 530 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 9303160063 930316 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND IN RUSSIA'S LARGEST AUCTION YET FOR PRIVATIZATION VOUCHERS HUNDREDS OF INVESTORS SOUGHT TO OWN A PIECE OF ZIL BEST KNOWN AS THE MAKER OF THE LONG BLACK LIMOUSINES THAT WERE A TRADEMARK OF THE SOVIET ELITE ZIL IN AN AUCTION THAT WILL RUN THROUGH APRIL 20 IS OFFERING ONE MILLION SHARES TO THE PUBLIC THE EFFORT IS RUSSIA'S FIRST TRULY NATIONWIDE SALE WITH 100 AUCTION OFFICES OPEN ACROSS THE COUNTRY TO COLLECT BIDS THE PRIVATIZATION VOUCHERS ARE A KEY ELEMENT OF PRESIDENT BORIS YELTSIN'S ATTEMPT TO BUILD A MARKET ECONOMY ZIL WAS FOUNDED IN THE LATE 1920S UNDER STALIN'S INDUSTRIALIZATION PROGRAM THE COMPANY WHOSE PRODUCTS INCLUDE REFRIGERATORS AND TRUCKS EMPLOYS MORE THAN 100000 WORKERS AND CLAIMED 1992 PROFIT OF 11 BILLION RUBLES ABOUT 20 MILLION ACCORDING TO RUSSIAN ACCOUNTING STANDARDS SOME 35 OF THE COMPANY WILL BE DISTRIBUTED TO THE PUBLIC THROUGH THE AUCTIONS EMPLOYEES AND MANAGEMENT HAVE BOUGHT 50 FOR CASH AND A 10 SHARE IS BEING RETAINED FOR FOREIGN BUYERS JAPANESE CORPORATE INSOLVENCIES ROSE 54 IN FEBRUARY FROM A YEAR EARLIER TO 1113 CASES ACCORDING TO TEIKOKU DATA BANK LTD A PRIVATE CREDIT RESEARCH AGENCY IN JANUARY WHEN INSOLVENCIES SLIPPED BELOW 1000 CASES FOR THE FIRST TIME IN 12 MONTHS THE AGENCY HAD SEEN SIGNS BUSINESS FAILURES WERE EASING BUT PESSIMISM RETURNED WITH THE FEBRUARY DATA AS THE AGENCY SAID THE TREND OF LONGTERM INCREASE HAD RESUMED DEBT LEFT BEHIND BY INSOLVENT COMPANIES FELL 29 TO 44366 BILLION YEN 376 BILLION THE SINGAPORE GOVERNMENT IN AN EFFORT TO ENCOURAGE INVESTMENT IN THE STOCK MARKET SAID IT WILL ALLOW CITIZENS TO INVEST MORE OF THEIR MANDATORY RETIREMENT SAVINGS 80 UP FROM 40 CURRENTLY IN STOCKS AND MUTUAL FUNDS THE GOVERNMENT ALSO WILL BROADEN THE LIST OF ELIGIBLE INVESTMENTS TO INCLUDE ALL STOCKS LISTED ON THE LOCAL EXCHANGE SINGAPOREANS HAD 46 BILLION SINGAPORE DOLLARS US28 BILLION STASHED AWAY IN SUCH ACCOUNTS AS OF THE END OF 1991 THE RUSSIANAMERICAN BANKERS FORUM SAID IT IS CREATING AN ACADEMY FOR TOP OFFICIALS OF RUSSIAN COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS THE ACADEMY PART OF AN EFFORT TO COMMERCIALIZE BANKING IN RUSSIA WILL SPONSOR A GROUP OF ABOUT 250 BANK OFFICIALS FOR AN EIGHTWEEK TRAINING PROGRAM IN CONNECTICUT THIS SUMMER THE FORUM WAS CREATED LAST YEAR AT THE REQUEST OF RUSSIAN PRESIDENT BORIS YELTSIN AUSTRALIAN MANUFACTURING INDUSTRIES REPORTED SOME IMPROVEMENT IN BUSINESS CONDITIONS IN THE FIRST QUARTER AND AN INCREASING PROPORTION EXPECT BETTER CONDITIONS IN THE SECOND QUARTER ACCORDING TO A SURVEY AMONG THE RESULTS 26 OF THE INDUSTRIES SAW A RISE IN ORDERS DURING THE CURRENT QUARTER WHILE 25 REPORTED A FALL SOME 47 OF RESPONDENTS EXPECT PROFITS TO RISE IN THE NEXT 12 MONTHS UP FROM 39 IN A PAST SURVEY MANUFACTURERS SAY THE GENERAL BUSINESS OUTLOOK HAS BEEN SLIGHTLY POSITIVE FOR SEVEN STRAIGHT QUARTERS ITALY BANNED LIVESTOCK AUCTIONS AND IMPOSED SEVERE RESTRICTIONS ON THE TRANSPORT OF CATTLE AFTER AN OUTBREAK OF FOOTANDMOUTH DISEASE HEALTH OFFICIALS BELIEVE THE DISEASE CAUSED BY A CONTAGIOUS VIRUS FOUND AMONG ANIMALS WITH HOOVES COULD HAVE BEEN SPREAD BY ANIMALS IMPORTED FROM CROATIA OR TURKEY THE EPIDEMIC SPARKED FEARS THAT THE EUROPEAN COMMUNITY MIGHT BAN THE SALE OF SOME ITALIAN PROCESSED MEATS SOME 4000 HEAD OF INFECTED LIVESTOCK HAVE BEEN DESTROYED SINCE THE DISEASE WAS FIRST REPORTED AT THE END OF LAST MONTH MUCH MORE HAS TO BE DONE IF EUROPEAN COMMUNITY ECONOMIC GROWTH IS TO REBOUND TO THE 3 RANGE IN THE NEXT FEW YEARS SAID HENNING CHRISTOPHERSEN THE EC'S TOP ECONOMICPOLICY OFFICIAL AFTER A MEETING OF EC FINANCE MINISTERS THE COMMISSION FORECASTS THAT THE EC'S GROSS DOMESTIC PRODUCT WILL GROW AN INFLATIONADJUSTED 08 THIS YEAR DOWN FROM ABOUT 11 IN 1992 THAT GROWTH RATE WOULDN'T BE ENOUGH TO PREVENT UNEMPLOYMENT FROM RISING TO ABOUT 11 FROM THE CURRENT 10 RATE THE COMMISSION SAID THE MINISTERS AT THE MEETING DEFERRED ACTION ON THE COMMUNITY'S MODEST ECONOMIC GROWTH INITIATIVE UNDER THE PROGRAM ANNOUNCED IN DECEMBER THE COMMISSION PLANS TO USE LOANS AND GRANTS TO AID SMALL BUSINESSES AND HELP FINANCE PANEUROPEAN TRANSPORT AND TELECOMMUNICATIONS NETWORKS MEANTIME THE FINANCE MINISTERS ENDORSED GREECE'S LONGTERM PLAN TO REDUCE INFLATION AND GOVERNMENT SPENDING THE PLAN CALLS FOR SLOWING INFLATION TO 45 IN 1996 FROM A PROJECTED 13 THIS YEAR THE PUBLIC SECTOR BUDGET DEFICIT WOULD SHRINK TO 16 OF GDP IN 1996 FROM 86 THIS YEAR MOST JAPANESE FAVOR A RESUMPTION OF COMMERCIAL WHALING DESPITE INTERNATIONAL CAMPAIGNS TO PROTECT THE MAMMALS ACCORDING TO A NEWSPAPER POLL THE ASAHI SHIMBUN FOUND 54 OF JAPANESE THINK THE GOVERNMENT SHOULD IGNORE A WORLDWIDE BAN ON WHALING WHILE 35 BACKED COMPLIANCE WITH THE BAN THOUSANDS OF ROMANIANS STORMED THE ARGENTINE EMBASSY SEEKING VISAS ABOUT 17000 ROMANIANS HAVE APPLIED SINCE ARGENTINA ALLOWED ROMANIAN IMMIGRATION THIS MONTH 9303160062 930316 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 3 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9303160061 930316 TECHNOLOGY & SCIENCE ELI LILLY SAYS FIRSTQUARTER EARNINGS WILL FALL FAR SHORT OF EXPECTATIONS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE BARRAGE OF BAD NEWS CONTINUED FOR ELI LILLY & CO AS THE INDIANAPOLIS DRUG MAKER SAID IT EXPECTS THIS QUARTER'S EARNINGS TO FALL AS MUCH AS 32 CENTS BELOW ANALYSTS' EXPECTATIONS LILLY SAID PERSHARE EARNINGS BEFORE ACCOUNTING CHANGES ARE LIKELY TO BE 120 TO 130 IN THE FIRST QUARTER COMPARED WITH 151 A YEAR EARLIER AND ANALYSTS' CONSENSUS ESTIMATES OF 152 THE 1992 FIRSTQUARTER RESULTS INCLUDED A GAIN FROM THE SALE OF THE COMPANY'S CAPSULE BUSINESS THE STATEMENT WAS ISSUED AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE WHERE LILLY FELL 1 TO 5075 SOME FACTORS WEREN'T IN THE COMPANY'S CONTROL SUCH AS THE RELATIVELY LIGHT RESPIRATORYDISEASE AND FLU SEASON WHICH HURT SALES OF THE ANTIBIOTIC CECLOR AND THE NEW ANTIBIOTIC LORABID HOWEVER OTHER FACTORS UNIQUE TO THE COMPANY AND ITS BUSINESSES CONTINUED TO PLAGUE LILLY WHICH HAS HAD DISAPPOINTING RESULTS RECENTLY LILLY HAD ITS FIRST QUARTERLY LOSS EVER IN 1992'S THIRD QUARTER FOR INSTANCE THE PRODUCTION SHUTDOWN AT LILLY'S EMERGENCY HEART DEFIBRILLATOR PLANT IN REDMOND WASH IS STILL LARGELY IN PLACE THE PLANT WHICH ONCE ACCOUNTED FOR 150 MILLION IN ANNUAL SALES WAS EXPECTED TO REOPEN EARLY IN THE 1992 FOURTH QUARTER WHILE THE PLANT IS PRODUCING THE DEVICES FOR OVERSEAS SHIPMENTS THE FOOD AND DRUG ADMINISTRATION HASN'T APPROVED THEM FOR RENEWED US SALES THE FDA ORDERED THE STOPPAGE LAST MAY AFTER FINDING PRODUCTION AND RECORDKEEPING DEFECTS ALSO SALES FROM THE COMPANY'S CALIFORNIABASED HYBRITECH INC UNIT FELL OFF SHARPLY THE COMPANY MAKES BLOODSCREENING EXAMS FOR PROSTATE CANCER AND HAS FACED DAMAGING COMPETITION FROM A NEWER VERSION OF THE TEST MANUFACTURED BY ABBOTT LABORATORIES THERE HAS BEEN RENEWED COMPETITION AS WELL ON THE SALE OF LILLY'S CARDIAC ANGIOPLASTY CATHETERS USED TO UNBLOCK ARTERIES THE COMPETITIVE SITUATION IS EXPECTED TO GET WORSE LILLY UNTIL RECENTLY HAD A MONOPOLY ON SURGICALLY IMPLANTED DEFIBRILLATORS TO REMEDY RAPID HEARTBEATS BUT THAT CHANGED A FEW WEEKS AGO AS MEDTRONIC INC ENTERED THAT US MARKET WITH A MUCH MORE ADVANCED DEVICE THAN LILLY'S VENTRITEX INC TOO IS EXPECTED TO GAIN FDA APPROVAL FOR A SIMILAR ADVANCED MACHINE AND PULL MORE BUSINESS FROM LILLY LILLY'S VERSION OF THE ADVANCED DEVICE IS EXPECTED TO BE ABOUT A YEAR DOWN THE ROAD THE ANTIDEPRESSANT DRUG PROZAC CONTINUED TO PRODUCE HIGHER SALES FIGURES FOR LILLY BUT NOT AT THE SAME SOARING RATES THAT IT ONCE DID THE DRUG NOW FACES US COMPETITION FROM PFIZER INC'S ZOLOFT AND SMITHKLINE BEECHAM PLC SOON WILL BEGIN MARKETING ANOTHER COMPETITOR KNOWN AS PAXIL IN THE US PROZAC SALES WERE UP 18 WORLDWIDE AND 14 IN THE US IN 1992 HOWEVER ANALYSTS SAID THAT SOME OF THIS GAIN WAS FROM PRICE INCREASES AND THAT LILLY'S SHARE OF TOTAL PRESCRIPTIONS WAS SOMEWHAT DISAPPOINTING THIS IS A COMPANY THAT HAS HAD LOTS OF BAD THINGS HAPPENING TO IT IN A SHORT PERIOD OF TIME SAID PAINEWEBBER DRUG ANALYST RONALD NORDMANN MR NORDMANN SAID HIS EARNINGS FORECAST OF 525 A SHARE FOR THE YEAR NOW WILL BE REVISED SHARPLY DOWNWARD JUST HOW SHARPLY WILL DEPEND ON A CONFERENCE CALL LILLY HAS SCHEDULED WITH ANALYSTS FOR THIS MORNING 9303160060 930316 VICTORIA S&L CASE BRINGS INDICTMENT OF 11 INDIVIDUALS BY HAL LANCASTER AND SCOTT MCCARTNEY STAFF REPORTERS OF THE WALL STREET JOURNAL SAN ANTONIO ELEVEN PEOPLE ASSOCIATED WITH THE DEFUNCT VICTORIA SAVINGS ASSOCIATION INCLUDING A CURRENT EMPLOYEE OF THE RESOLUTION TRUST CORP WERE INDICTED BY A FEDERAL GRAND JURY HERE ON CHARGES OF FRAUD RELATED TO LOSSES OF MORE THAN 200 MILLION AT THE THRIFT AMONG THOSE INDICTED AFTER A 15MONTH INVESTIGATION INTO THE COLLAPSE OF THE SAN ANTONIO THRIFT ACCORDING TO A DEPARTMENT OF JUSTICE NEWS RELEASE WERE RUPERT A HAYS 55 YEARS OLD FORMER CHAIRMAN CHIEF EXECUTIVE OFFICER AND LARGEST STOCKHOLDER GLEN S CORSO 41 FORMER PRESIDENT AND CHIEF OPERATING OFFICER AND LAWRENCE R CANEDY 37 FORMER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR HAYS CURRENTLY SENIOR VICE PRESIDENT OF NORTH AMERICAN FINANCIAL CORP IN SAN ANTONIO MR CORSO AN ATTORNEY AND MR CANEDY CURRENTLY EMPLOYED AT BANC PLUS IN SAN ANTONIO COULDN'T BE REACHED FOR COMMENT ALSO INDICTED WAS JACK T KOLZE OF IRVING TEXAS WHO IS CURRENTLY AN ATTORNEY WITH THE RESOLUTION TRUST CORP THE AGENCY CREATED BY CONGRESS TO CLEAN UP THE SAVINGSANDLOAN DEBACLE MR KOLZE COULDN'T BE REACHED FOR COMMENT THE JUSTICE DEPARTMENT NEWS RELEASE STATED THAT THE DEFENDANTS WERE CHARGED WITH CONSPIRACY MISAPPLYING FUNDS AND RECEIVING MONEY UNLAWFULLY MAKING FALSE STATEMENTS AND DEFRAUDING A SAVINGSANDLOAN INSTITUTION FOR SEVERAL YEARS THE INDICTMENT ALLEGES THEY CONSPIRED TO DEFRAUD FEDERAL BANK EXAMINERS BY AMONG OTHER THINGS FRAUDULENTLY STRUCTURING SEVERAL TRANSACTIONS TO EVADE FEDERAL BANKING RULES AND CREATING SHAM LIENS TO HIDE PROFITS DERIVED FROM FRAUDULENT LOANS OTHERS INDICTED WERE CHAD R POWELL 48 FORMER SENIOR VICE PRESIDENT EDWARD C MONACO 35 FORMER VICE PRESIDENT AND COMMERCIAL LENDING OFFICER GEORGE B MONTAGUE 38 OF FORT WORTH AND JAMES J BRADY 55 WILLIAM W SNIDER 46 HAROLD R PETTIGREW 43 AND DAVID C WALKER 32 ALL OF ARLINGTON TEXAS MR MONACO SAID HE KNEW AN INVESTIGATION WAS GOING ON BUT HADN'T HEARD ABOUT THE INDICTMENTS AND WASN'T SURE WHAT THE CHARGES WERE I DON'T BELIEVE I DID ANYTHING WRONG HE SAID MR MONTAGUE REACHED AT HOME WOULDN'T COMMENT MR SNIDER SAID THAT ONCE THE FACTS ARE KNOWN IT WILL BE SHOWN I AM INNOCENT OF ALL WRONGDOING A WOMAN ANSWERING THE PHONE AT MR POWELL'S RESIDENCE SAID HE WOULDN'T COME TO THE PHONE AND THE OTHERS COULDN'T BE REACHED FOR COMMENT 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 9303160059 930316 TECHNOLOGY & SCIENCE IN THE LAB FOODSAFETY STRATEGY PITS GERM VS GERM BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL AS FOOD POISONING REPORTS RISE SCIENTISTS ARE FIGHTING BACK BY PUTTING MICROORGANISMS INTO FOOD ANIMALS AND FARM FIELDS NOT TAKING THEM OUT THOUGH CRITICS ARE QUESTIONING THE SAFETY OF THE STRATEGY IN SOME CASES THE UNCONVENTIONAL METHOD KNOWN AS BIOCOMPETITIVE EXCLUSION IS GAINING SUPPORT AS CHEAP PESTICIDEFREE AND ACCURATE AT THE MOMENT THE US IS LOSING THE FOOD POISONING WAR THE WAY FOOD IS PRODUCED AND EATEN TODAY IS MAKING LIFE A PICNIC FOR MICROORGANISMS THE TREND OF EATING AWAY FROM HOME FOR INSTANCE MEANS THAT A MISHAP IN A RESTAURANT CAN AFFECT HUNDREDS OF PEOPLE LIKE THE RECENT OUTBREAK INVOLVING THE JACK IN THE BOX FASTFOOD CHAIN BUT EATING AT HOME ISN'T NECESSARILY SAFER SOME MICROWAVES HAVE COLD SPOTS THAT INADEQUATELY HEAT FROZEN DINNERS FIXING CHICKEN REQUIRES SKILL BECAUSE MUCH OF IT IS TAINTED WITH SALMONELLA EVEN UNBROKEN EGGS CAN HARBOR THE BACTERIA MEANWHILE SCIENCE ITSELF KEEPS FINDING MICROORGANISMS TO WORRY ABOUT THE FOOD AND DRUG ADMINISTRATION IS STUDYING WHETHER THE FUSARIUM MONILIFORME FUNGUS COMMONLY FOUND IN MIDWEST CORN CROPS NATURALLY MAKES A CARCINOGEN IN THE PAST MOST FOODSAFETY RESEARCH HAS TAKEN A SHOTGUN APPROACH KILL ALL MICROORGANISMS TO DESTROY THE SMALL PERCENTAGE THAT ARE HARMFUL BUT THE PUBLIC NOW FAVORS THE USE OF FEWER CHEMICALS DRUGS AND PRESERVATIVES THAT FIGHT FOOD PESTS BIOCOMPETITIVE EXCLUSION WILL BE AN IMPORTANT PART OF FOOD SAFETY PREDICTS DOUGLAS ARCHER DEPUTY DIRECTOR OF THE FOOD AND DRUG ADMINISTRATION'S FOODSAFETY UNIT THE JACK IN THE BOX INCIDENT OF TAINTED HAMBURGER WHICH HAS SICKENED HUNDREDS OF CHILDREN IN WASHINGTON STATE AND HAS BEEN BLAMED FOR KILLING AT LEAST TWO SINCE EARLY JANUARY WILL ONLY SPUR FDA RESEARCH HE SAYS FOOD MANUFACTURERS ARE UNDER PRESSURE TO FIND NOVEL AND CREATIVE SOLUTIONS SAYS DAVID MACNAIR VICE PRESIDENT OF SCIENCE AND TECHNOLOGY AT CAMPBELL SOUP CO THE COMPANY DESIGNED A BACTERIUM FOR REFRIGERATED FOOD THAT PRODUCES LACTIC ACID WHEN TEMPERATURES RISE THE LACTIC ACID INHIBITS THE BOTULISM PATHOGEN MEANWHILE AGRICULTURE DEPARTMENT SCIENTISTS AT THE FOOD ANIMAL PROTECTION RESEARCH LABORATORY ARE TRYING TO FIGHT SALMONELLA IN CHICKEN BY FEEDING ONEDAYOLD CHICKS CAPSULES CONTAINING A DOZEN OR SO STRAINS OF BACTERIA FOUND IN THE INTESTINES OF HEALTHY HENS THIS WAY NORMAL BACTERIA CAN GET A HEAD START COLONIZING THE BIRDS BEFORE SALMONELLA FINDS A FOOTHOLD IN THREE YEARS OF EXPERIMENTS THE METHOD PROTECTED 70 OF CHICKENS FROM SALMONELLA REPORTS DONALD CORRIER AN AGRICULTURE DEPARTMENT VETERINARY PATHOLOGIST THE TECHNIQUE ALREADY USED IN NORTHERN EUROPE IS SLATED THIS YEAR FOR ITS BIGGEST TRIAL AT A 60000BIRD COMMERCIAL OPERATION IN PUERTO RICO MOST OF THE WORK ON BIOCOMPETITIVE EXCLUSION IS BEING CONDUCTED AT GOVERNMENT AND UNIVERSITY LABORATORIES BECAUSE MANY RESEARCH FIRMS WORRY ABOUT THE LIABILITY OF SELLING SUCH A PRODUCT WHILE THE TECHNIQUE IN THE LABORATORY SEEMS TO REDUCE THE POPULATION OF THE PATHOGEN IT ISN'T ELIMINATED THAT MEANS FOOD POISONING CAN STILL HAPPEN IT IS A VERY INTERESTING CONCEPT THE PROBLEM IS HOW TO MAKE IT SUCCESSFUL 100 OF THE TIME SAYS NANCY TOMES A MICROBIOLOGIST AT PIONEER HIBRED INTERNATIONAL INC A DES MOINES IOWA AGRICULTURAL SEED PROCESSOR IT ONLY TAKES ONE BAD CHICKEN FOR A PROBLEM DR CORRIER SAYS HE'S HOPEFUL THAT THE SAME PRINCIPLE MIGHT WORK ON A RANGE OF LIVESTOCK FOR OTHER PATHOGENS SUCH AS THE E COLI STRAIN THAT CAUSED THE JACK IN THE BOX POISONINGS BUT MANY QUESTIONS REMAIN INCLUDING WHETHER THE DIGESTIVE SYSTEM OF A RUMINANT ANIMAL IS TOO COMPLICATED FOR THIS PROCESS THE MOST CONTROVERSIAL BIOCOMPETITIVE PROJECT IS RUN BY PETER J COTTY A PLANT PATHOLOGIST WHO DECORATES HIS AGRICULTURE DEPARTMENT BUSINESS CARD WITH A FUNGUS CALLED ASPERGILLUS FLAVUS INSIDE DR COTTY'S NEW ORLEANS LABORATORY ROCK MUSIC PLAYS AS A HANDFUL OF YOUNG TECHNICIANS SORT SAMPLES OF TOXIC MOLD COLLECTED OFF EVERYTHING FROM PEANUTS AND CORN TO A BRAZILIAN NUT FROM A GIFT BASKET SENT BY DR COTTY'S BROTHERINLAW DR COTTY PUTS A LOCK OF RAW COTTON FROM AN ARIZONA GIN INTO A BLACK BOX EQUIPPED WITH AN ULTRAVIOLET LIGHT THE LANKY 38YEAROLD SCIENTIST STARES THROUGH A PORTHOLE THE COTTON GLOWS BRIGHT YELLOWGREEN THE SIGNATURE OF A TOXIC MOLD THAT PRODUCES AFLATOXIN A POTENT CARCINOGEN THAT INFESTS DROUGHTSTRICKEN CROPS ACROSS THE GLOBE A SAMPLE WILL JOIN THE THOUSANDS OF PETRI DISHES AND VIALS STACKED ATOP TABLES AND PACKED INTO REFRIGERATORS EACH CONTAINS A FUZZY BLOB OF ASPERGILLUS FLAVUS DR COTTY GOT INTERESTED IN BIOCOMPETITIVE EXCLUSION ABOUT FIVE YEARS AGO WHILE STUDYING WHY DIFFERENT STRAINS OF THE FUNGUS PRODUCE DIFFERENT AMOUNTS OF POISON INDEED ABOUT 1 IN 10 STRAINS DON'T MAKE ANY DETECTABLE AMOUNT THAT SUGGESTS THE FUNGUS CAN THRIVE EVEN WITHOUT MAKING THE TOXIN HE BEGAN SEARCHING FOR A NONTOXIC STRAIN THAT COULD OUTGROW THE POISONOUS COUSINS SO FAR THE LABORATORY HAS FOUND ABOUT 50 NONTOXIC STRAINS THREE HAVE BEEN RELEASED ON SMALL TEST PLOTS OF COTTON AND CORN IN SOME EXPERIMENTS THEY HAVE REDUCED AFLATOXIN LEVELS 90 I WAS STUNNED DR COTTY SAYS AFLATOXIN HAS BEEN THOUGHT TO BE AN INTRACTABLE PROBLEM FOR US AGRICULTURE BY SOME ESTIMATES THE PEANUT INDUSTRY LOSES ROUGHLY 25 MILLION A YEAR ON TAINTED CROPS IT OFTEN INFESTS CORN GROWN IN THE SOUTHERN TIP OF TEXAS WHERE MUCH OF THE CROP IS EATEN BY PEOPLE AND THE SOUTHWEST COTTON CROP MUCH OF WHICH IS FED TO DAIRY CATTLE DR COTTY WANTS TO TRY HIS IDEA ON AN ENTIRE COTTON VALLEY IN ARIZONA BUT FOODSAFETY CONFERENCES HAVE ERUPTED INTO SHOUTING MATCHES OVER HIS BIOCOMPETITIVE WORK AND HE HASN'T YET RECEIVED GOVERNMENT APPROVAL FOR THE COTTONVALLEY EXPERIMENT SOME SCIENTISTS COMPLAIN THAT TOO LITTLE IS KNOWN ABOUT WHETHER A NONPOISONOUS STRAIN IN THE LABORATORY MIGHT SOMEHOW GO TOXIC IN THE WILD CLOSELY RELATED STRAINS ARE ABLE TO EXCHANGE GENETIC MATERIAL THROUGH A TYPE OF FUSION ALTHOUGH DR COTTY SAYS SO FAR HIS NONTOXIC STRAINS HAVEN'T DONE THAT WITH TOXIC STRAINS IN THE LABORATORY I STILL NEED TO BE CONVINCED ABOUT THE ENVIRONMENTAL CONDITIONS THAT TURN OFF AND ON THE ABILITY TO MAKE POISON SAYS LARRY DARRAH AN AGRICULTURE DEPARTMENT CORN BREEDING SCIENTIST WHO SAYS IT'S SAFER TO FOCUS ON DEVELOPING PLANTS THAT RESIST FUNGUS OTHERS ARE WORRIED ABOUT THE SAFETY OF HANDLING ASPERGILLUS FLAVUS TOXIC OR NOT THE SPORES CAN GROW IN THE LUNGS OF PEOPLE WITH WEAKENED IMMUNE SYSTEMS AND SOME SEED COMPANIES ARE AGHAST THAT THE GOVERNMENT WOULD CONSIDER RELEASING A FUNGUS THAT WOULD STILL INFECT PLANTS EVEN IF IT DOESN'T TAINT THE CROP WITH A CARCINOGEN DR COTTY ARGUES THAT HIS TECHNIQUE ISN'T ANY WORSE THAN FARMERS BLINDLY MODIFYING THE MICROORGANISMS IN THEIR FIELDS BY WORKING THE SOIL HE SAYS THE TECHNIQUE DOESN'T CHANGE THE FUNGAL POPULATION IN A FIELD JUST WHETHER IT IS POISONOUS IT IS MUCH MORE CLEVER TO SELECT THE FUNGI THAT WILL GROW IN OUR FIELDS JUST LIKE WE SELECT THE PLANTS HE SAYS 9303160058 930316 BUSINESS BRIEF DATASCOPE CORP OPERATING PROFIT IN HALF TO BE EQUAL TO YEAR AGO DATASCOPE CORP MONTVALE NJ SAID IT EXPECTS SECONDHALF OPERATING EARNINGS TO BE ABOUT EQUAL TO A YEAR AGO AND ADDED THAT SALES OF ITS INTRAAORTIC BALLOON CATHETERS ARE SOFTENING THE MAKER OF HEALTHCARE PRODUCTS SAID HOSPITALS ARE REDUCING PURCHASES OF THE DEVICE TO LOWER INVENTORIES APPARENTLY IN RESPONSE TO UNCERTAINTIES ABOUT GOVERNMENT HEALTHCARE POLICIES AND IT SAID ITS JAPANESE DISTRIBUTOR IS ALSO REDUCING PURCHASES OF INTRAAORTIC BALLOON PUMP PRODUCTS FOR THE BALANCE OF THE FISCAL YEAR TO REDUCE INVENTORIES IN OVERTHECOUNTERTRADING YESTERDAY DATASCOPE FELL 1125 CLOSING AT 14 DATASCOPE SAID SALES OF OTHER PRODUCTS ARE EXPECTED TO STAY STRONG IN THE SECOND HALF IN THE THIRD QUARTER ENDED MARCH 31 DATASCOPE HAD NET INCOME OF 35 MILLION OR 21 CENTS A SHARE ON SALES OF 411 MILLION IN THE FOURTH QUARTER NET INCOME WAS 140000 OR ONE CENT A SHARE AFTER TWO CHARGES TOTALING 41 MILLION 9303160057 930316 BUSINESS BRIEF PS GROUP INC LOSS TOTALING 561 MILLION FOR FOURTH PERIOD IS POSTED PS GROUP INC POSTED A FOURTHQUARTER NET LOSS OF 561 MILLION OR 929 A SHARE A YEAR EARLIER THE SAN DIEGO AIRCRAFT LEASING AND HOLDING COMPANY REPORTED A NET LOSS OF 697000 OR 13 CENTS A SHARE SALES FELL 13 TO 688 MILLION FROM 794 MILLION IN THE LATEST PERIOD PS GROUP TOOK WRITEDOWNS OF 469 MILLION OR 785 A SHARE REFLECTING ITS INVESTMENT IN ITS AILING RECONTEK SUBSIDIARY AND OF 6 MILLION OR 1 A SHARE FOR THE VALUE OF TWO 747 FREIGHTER AIRCRAFT THAT HAD BEEN LEASED BUT ARE NOW UP FOR SALE IT ALSO HAD A NONCASH FOREIGN EXCHANGE LOSS OF 12 MILLION OR 20 CENTS A SHARE FOR DEBT ON AIRCRAFT DENOMINATED IN YEN ON FRIDAY WHEN THE COMPANY REPORTED ITS RESULTS ITS STOCK FELL 13 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE PS GROUP SHARES CLOSED AT 13625 DOWN 2125 A SHARE IN LATE TRADING YESTERDAY THE SHARES WERE QUOTED AT 13625 UNCHANGED FOR THE YEAR PS GROUP HAD A LOSS OF 676 MILLION OR 1133 A SHARE ON SALES OF 263 MILLION COMPARED WITH A 1991 NET LOSS OF 239 MILLION OR 438 A SHARE ON SALES OF 298 MILLION 9303160056 930316 INTERNATIONAL BRIEF SHARP CORP JAPANESE CONCERN TO INCREASE OUTPUT AT TENNESSEE PLANT SHARP CORP SAID IT WILL STEP UP PRODUCTION OF MICROWAVE OVENS AND COLOR TELEVISIONS AT ITS PLANT IN TENNESSEE TO MEET INCREASING DEMAND AND OFFSET CURRENCY PRESSURES A SPOKESWOMAN FOR THE JAPANESE CONSUMER ELECTRONICS MAKER SAID THAT IN THE FISCAL YEAR BEGINNING APRIL 1 THE COMPANY WILL INCREASE PRODUCTION 10 FROM THE CURRENT YEAR AS THE US ECONOMY RECOVERS AND THE YEN HOLDS STRONG VS THE DOLLAR SHARP IS ALSO BUILDING A 22 MILLION PLANT TO MANUFACTURE TONER A PHOTOGRAPHIC INK TO OPEN IN APRIL 1994 THE SPOKESWOMAN SAID THE SPOKESWOMAN SAID THE COMPANY IS AIMING TO PRODUCE 12 MILLION COLOR TELEVISIONS A YEAR AT THE MEMPHIS TENN FACILITY SHE SAID THAT IN THE FALL SHARP WILL ALSO BEGIN TURNING OUT WIDESCREEN TV SETS AT A RATE OF ABOUT 1000 A MONTH SHARP IS LOOKING TO BOOST OUTPUT OF MICROWAVE OVENS TO 155 MILLION UNITS ANNUALLY 9303160055 930316 INTERNATIONAL BRIEF DEVELOPMENT BANK OF SINGAPORE LTD EARNINGS ROSE 41 IN 1992 LESS THAN SOME EXPECTED DEVELOPMENT BANK OF SINGAPORE LTD SURPRISED INVESTORS WITH LOWERTHANEXPECTED RESULTS FOR 1992 HELPING TO SEND THE LOCAL STOCK MARKET DOWN 13 THE BANK SAID NET INCOME ROSE A SLIM 41 FROM 1991 TO 3284 MILLION SINGAPORE DOLLARS US1996 MILLION AS RETURN ON ASSETS FELL SLIGHTLY TO 091 FROM 093 IN 1991 THE DECLINE STEMMED IN PART FROM A SQUEEZE ON INTERESTRATE MARGINS LAST YEAR DBS THE REPUBLIC'S LARGEST BANK SAID PERSHARE EARNINGS ADVANCED TO 63 CENTS FROM 62 CENTS THERE WERE MORE SHARES OUTSTANDING IN THE LATEST PERIOD SEVERAL ANALYSTS SAID THEY EXPECT EARNINGS TO GROW ABOUT 14 AT DBS THIS YEAR 9303160054 930316 HEARD ON THE STREET LEHMAN BROTHERS ISSUES A GLOWING REPORT ON SOME WALTER INDUSTRIES BONDS IT HOLDS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS LAST MONTH SENT CLIENTS A GLOSSYCOVERED 57PAGE REPORT STRONGLY ADVOCATING PURCHASE OF JUNK BONDS ISSUED BY WALTER INDUSTRIES A HOMEBUILDING AND COALMINING COMPANY BUT GUESS WHAT RIGHT THERE IN THE REPORT IT SAYS THAT LEHMAN ITSELF IS A BIG HOLDER OF THE SAME BONDS THE WALTER INDUSTRIES REPORT IS AN EXAMPLE OF WHY CONSUMERS OF WALL STREET RESEARCH SHOULD ALWAYS CHECK WHAT MAY APPEAR TO BE STANDARD BOILERPLATE MATERIAL FOR DISCLOSURES THAT COULD AFFECT THE WRITERS' OBJECTIVITY WALTER WAS THE SUBJECT OF A 24 BILLION 1987 LEVERAGED BUYOUT LED BY KOHLBERG KRAVIS ROBERTS WALTER HAS BEEN IN BANKRUPTCYLAW PROCEEDINGS FOR THREE YEARS OVER ASBESTOSLIABILITY CLAIMS BUT THE LEHMAN REPORT BY ANALYST DAVID GOLDBURG CONCLUDED THAT THE ASBESTOS PLAINTIFFS ARE LIKELY TO LOSE IN COURT AND THAT HOLDERS OF WALTER BONDS COULD REAP HEFTY ANNUAL RETURNS OF 26 TO 117 OVER THE NEXT 15 MONTHS THE LEHMAN REPORT'S CONCLUSIONS MAY OR MAY NOT HAVE BEEN INFLUENCED BY THE FACT THAT LEHMAN IS THE LARGEST HOLDER OF WALTER BONDS ITS JUNKBOND DEPARTMENT LED BY MARIO MONELLO HOLDS ROUGHLY 300 MILLION OF THE JUNK BONDS RECOMMENDED BY THE REPORT THE QUESTION OF WHETHER MR GOLDBURG REACHED HIS CONCLUSION INDEPENDENTLY PROMPTED AN EXTENSIVE REVIEW INVOLVING TWO OUTSIDE LAW FIRMS BY LEHMAN'S THOMAS RUSSO A MANAGING DIRECTOR RESPONSIBLE FOR LEGAL AND COMPLIANCE MATTERS AT MR RUSSO'S INSISTENCE LEHMAN DISCLOSED HOLDING A SIGNIFICANT PERCENTAGE OF WALTER'S 16625 AND 17 NOTES IN THE THIRD PARAGRAPH OF A FULL PAGE OF CAPITALIZED DISCLAIMERS ON THE REPORT'S FIRST PAGE PEOPLE CLOSE TO LEHMAN AN AMERICAN EXPRESS UNIT ACKNOWLEDGE THAT THE REPORT PROBABLY WOULDN'T HAVE BEEN PUBLISHED IF THE ANALYSTS HAD CONCLUDED THAT THE ASBESTOS CLAIMANTS HAD A GOOD CASE AND THE BONDS WERE OVERPRICED ALTHOUGH MR RUSSO CONCLUDED THAT MR GOLDBURG DID REACH HIS CONCLUSIONS INDEPENDENTLY THE ANALYST WAS HIRED ONLY LAST FALL BY LEHMAN'S HIGHYIELD RESEARCH DIRECTOR MARIEL CLEMENSEN WHO IN TURN WORKS FOR MR MONELLO LEHMAN'S WALTER BOND POSITION AMOUNTS TO ROUGHLY 17 OF WALTER'S ENTIRE DEBT OUTSTANDING AND IS BELIEVED TO TOTAL ONETHIRD OF THE 800 MILLION COMBINED FACE VALUE OF THE 16625 AND 17 ISSUES IN WALTER IT PUTS LEHMAN ALONGSIDE SUCH OTHER VULTURE INVESTORS AS LEON BLACK AND FIDELITY INVESTMENTS IT'S A VERY BIG BET THE BIGGEST BET I'M AWARE OF ANY TRADING DESK TAKING ON A DISTRESSED SECURITY SAYS BILL JACOBS WHO SPECIALIZES IN BANKRUPTCIES AND JUNK BONDS AT FIRST BOSTON THE LEHMAN REPORT ON WALTER WHILE WELL DONE IS CLEARLY PARTISAN HE SAYS MR JACOBS PUBLISHED HIS OWN REPORT IN AUGUST CONCLUDING THE ASBESTOS PLAINTIFFS ARE LIKELY TO WIN SUBSTANTIAL DAMAGES MR GOLDBURG LAST WEEK SAID HE COULDN'T DISCUSS THE REPORT THE REASON WAS THAT LEHMAN WAS ABOUT TO ATTEND NEGOTIATIONS AIMED AT SETTLING THE ASBESTOS CASES AND RESOLVING THE BANKRUPTCY PROCEEDINGS LEHMAN IS RESTRICTED MEANING IT CAN'T ENGAGE IN SALES AND TRADING OF THE SECURITIES BECAUSE IT MAY HAVE INFORMATION NOT AVAILABLE TO ALL HOLDERS IN A BRIEF INTERVIEW BEFORE LEHMAN BECAME RESTRICTED MS CLEMENSEN SAID THAT IN PUBLISHING THE REPORT OUR PRIMARY OBJECTIVE IS TO INCREASE BONDHOLDER AWARENESS OTHERS SAY LEHMAN WANTED TO LAY OUT ITS VIEW OF THE CASE BEFORE THE RESTRICTION ON COMMUNICATING ITS VIEWS WENT INTO EFFECT JACK HERSCH A FORMER LEHMAN BANKRUPTCY ANALYST WHO NOW IS DIRECTOR OF RESEARCH AT MJ WHITMAN LP WHICH SPECIALIZES IN DISTRESSED SECURITIES RECALLS THAT LEHMAN BEGAN BUILDING ITS WALTER BOND POSITION IN 1990 AND 1991 ON HIS RECOMMENDATION SINCE THEN HE SAYS ITS MARKET VALUE HAS ROUGHLY DOUBLED THE DECEMBER 1989 START OF CHAPTER 11 BANKRUPTCY PROCEEDINGS KNOCKED DOWN THE PRICE OF THE 16625 AND 17 ISSUES TO BELOW 20 OF THEIR FACE VALUE THOSE BONDS HAVE SINCE REBOUNDED TO AROUND 71 AND 57 OF THE FACE AMOUNT SAYS KEVIN MCCABE DIRECTOR OF RESEARCH AT BDS SECURITIES HE SAYS LEHMAN'S REPORT INITIALLY BOOSTED PRICES OF ALL WALTER BONDS THREE TO FOUR CENTS ON THE DOLLAR BUT THE BONDS HAVE SINCE GIVEN BACK PART OF THOSE GAINS COULD MR GOLDBURG HAVE DEEMED THE BONDS OVERPRICED MR HERSCH RESPONDS WE HAD DEVELOPED A STRONG INTERNAL CONSENSUS THAT THIS WAS THE RIGHT PLAY IT WASN'T PERCEIVED THAT AN ANALYST COULD COME ALONG AND REFUTE THE PRIOR 2 1/2 YEARS' WORK MR HERSCH BELIEVES ONE MAJOR REASON THE LEHMAN REPORT WAS WRITTEN WAS TO RESPOND TO THE FIRST BOSTON REPORT IN DOING RESEARCH MR GOLDBURG A NONLAWYER CONSULTED WITH ROBERT DRAIN A LAWYER AT PAUL WEISS RIFKIND WHARTON & GARRISON WHO REPRESENTS LEHMAN AS A CREDITOR IN THE WALTER BANKRUPTCY CASE I SENT HIM COPIES OF THE CASES AND THE BRIEFS HE NEEDED TO START SOMEWHERE SAID MR DRAIN HE SAYS MR GOLDBURG ALSO ASKED QUESTIONS LIKE AM I READING THIS CASE RIGHT A LEHMAN SPOKESMAN SAYS IT'S PERFECTLY PROPER FOR LEHMAN TO PRODUCE RESEARCH ON COMPANIES IN WHICH IT HAS A FINANCIAL INTEREST SO LONG AS THAT INTEREST IS FULLY AND PROPERLY DISCLOSED MR RUSSO SAYS HE FOCUSED ON THE QUESTION OF MR GOLDBURG'S INDEPENDENCE BECAUSE IT WAS IMPORTANT FROM AN ETHICAL POINT OF VIEW I DON'T WANT US PUTTING OUT SOMETHING THAT IS TALKING OUR OWN BOOK THAT'S AN INTEGRITY ISSUE 9303160053 930316 INTERNATIONAL JACQUES ROGOZINSKI MEXICO'S 22 BILLION MAN SPREADS THE GOSPEL AS AN APOSTLE OF PRIVATIZATION BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY IN THE PANTHEON OF THE CENTURY'S MOST PROLIFIC DEAL MAKERS THERE WILL BE A SPECIAL PLACE FOR JACQUES ROGOZINSKI DR ROGOZINSKI IS THE MEXICAN GOVERNMENT BUREAUCRAT WHO HAS SOLD OFF 22 BILLION OF STATEOWNED COMPANIES IN JUST FIVE YEARS HAVING EARNED TOP DOLLAR FOR THE MEXICAN TREASURY BY UNLOADING STATEOWNED COMPANIES RANGING FROM STEEL MILLS TO SOFTDRINK BOTTLERS DR ROGOZINSKI HAS EMERGED AS THE APOSTLE OF PRIVATIZATION SPREADING THE GOSPEL FROM RUSSIA TO ARGENTINA TO INDIA WHEREVER I'M INVITED TO TALK ABOUT PRIVATIZATION I EMPHASIZE THE FOUR C'S CONSISTENCY AND CONTINUITY TO GIVE CREDIBILITY AND CONFIDENCE SAYS THE VOLUBLE 41YEAROLD IN MEXICO THE LURE OF PRIVATIZATION HAS PERSUADED LOCAL BUSINESSMEN TO REPATRIATE BILLIONS OF DOLLARS THEY SHIPPED ABROAD DURING THE 1980S DEBT CRISIS THE GOVERNMENT USED THESE PRIVATIZATION PROCEEDS TO REDUCE ITS TOWERING INTERNAL DEBT THE INTEREST SAVINGS IN TURN HAVE FUELED RECORD SOCIAL SPENDING THERE ARE CERTAINLY GOOD LESSONS IN MEXICO'S PROGRAM SAYS MIKLOS NEMETH VICE PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHO ATTENDED A RECENT PRIVATIZATION SEMINAR IN MEXICO CITY THESE DAYS DR ROGOZINSKI IS PLOTTING THE PRIVATIZATION OF TWO MEXICAN TELEVISION NETWORKS WHOSE DISARRAY IS TYPICAL OF THE STATE COMPANIES HE WORKS WITH MANAGEMENT HAS BEEN IN UPHEAVAL ONE STATION DIRECTOR RESIGNED AFTER A SINGLE DAY ON THE JOB AND THE NETWORKS ARE WOEFULLY UNDERCAPITALIZED NEW DIGITAL EQUIPMENT WAS TIED UP IN CUSTOMS FOR A YEAR BECAUSE THE NETWORKS COULDN'T AFFORD THE IMPORT DUTIES YET SUCH IS THE CONFIDENCE IN MEXICO'S PRIVATIZATION PROGRAM THAT INVESTOR GROUPS ARE LINED UP TO BID FOR THE NETWORKS DR ROGOZINSKI SAYS HE LEARNED A LOT ABOUT OVERCOMING OBSTACLES DURING HIS YOUTH HIS PARENTS WERE POLISH JEWS WHO SURVIVED NAZI CONCENTRATION CAMPS AND EMIGRATED TO MEXICO IN 1951 MY BACKGROUND SAYS DR ROGOZINSKI WHO WAS 10 MONTHS OLD WHEN HE ARRIVED IN MEXICO MADE ME STUBBORN AFTER COMPLETING UNDERGRADUATE STUDIES IN MEXICO HE OBTAINED A DOCTORATE IN ECONOMICS AT THE UNIVERSITY OF COLORADO DR ROGOZINSKI RETURNED TO MEXICO TO TAKE A GOVERNMENT POST AND MEXICAN CITIZENSHIP IN 1988 HE WAS PLACED IN CHARGE OF MEXICO'S FLEDGLING PRIVATIZATION PROGRAM DURING THE PREVIOUS 15 YEARS THE GOVERNMENT HAD ACCUMULATED HUNDREDS OF COMPANIES FREQUENTLY IN DEFIANCE OF ECONOMIC LOGIC THERE WAS A SUGAR MILL IN OAXACA THAT HAD TO PROCESS 70000 TONS OF CANE TO BREAK EVEN TOO BAD THE REGION GREW ONLY 30000 TONS THERE WAS THE LARGE VEGETABLEOIL MILL A PRODIGIOUS CONSUMER OF ELECTRICITY THAT ROUTINELY CAUSED POWER OUTAGES IN THE TINY VILLAGE WHERE IT WAS LOCATED AND THERE WAS THE ACAPULCO HOTEL WHOSE SWIMMING POOL HAD BEEN DEEDED BY A MANAGER TO HIS LOVER DR ROGOZINSKI'S EFFORTS TO UNLOAD THESE WHITE ELEPHANTS ENCOUNTERED DESPERATE RESISTANCE FROM BUREAUCRATS AND WORKERS BEFORE HE COULD SELL THE COUNTRY'S LARGEST MINE THE ARMY HAD TO BE CALLED IN TO SUBDUE ITS REBELLIOUS UNION DR ROGOZINSKI FIGURED THERE HAD TO BE A BETTER WAY FOR THE REFORMERS TO ASSERT CONTROL IN 1990 HE CREATED THE DISINCORPORATION UNIT A 16MEMBER TEAM THAT SERVES AS A HOLDING COMPANY FOR BUSINESSES TARGETED FOR PRIVATIZATION WITH DR ROGOZINSKI AS CHAIRMAN AND CABINET MEMBERS ON THE BOARD THE REFORMERS FINALLY HAD THE UPPER HAND THE BUREAUCRACY LISTENS TO ME NOW HE SAYS SMILING BECAUSE I'M THE BOSS THE DIVESTMENT PROGRAM PICKED UP STEAM LEADING TO HIS BIGGEST DEAL THE 1991 SALE OF THE STATE TELEPHONE MONOPOLY TELEFONOS DE MEXICO BECAUSE OF POLITICAL CONCERNS ABOUT FOREIGN INFLUENCE ON TELMEX DR ROGOZINSKI HAD TO DESIGN A PUBLIC STOCK OFFERING THAT WOULD GIVE OPERATING CONTROL TO MEXICANS WHILE ATTRACTING CAPITAL THAT ONLY FOREIGNERS HAD HIS SOLUTION WAS TO CREATE NONVOTING SHARES FOR FOREIGNERS THE GOVERNMENT'S WALL STREET ADVISERS SCOFFED AT THE IDEA BUT THE 24 BILLION OFFERING WAS A HIT THAT TRIGGERED A SURGE OF FOREIGN INVESTMENT IN MEXICAN STOCKS DR ROGOZINSKI SAYS HIS DEALS WOULDN'T HAVE BEEN SUCCESSFUL WERE IT NOT FOR MEXICO'S PRUDENT FISCAL AND TRADE POLICIES PRIVATIZATION ALONE IS NO PANACEA SAYS DR ROGOZINSKI WHO THINKS MANY DEVELOPING COUNTRIES MISS THIS POINT FOR THE PRIVATIZED BUSINESSES THOUGH THE REMOVAL OF GOVERNMENT CONTROL CAN MEAN A BRIGHT NEW BEGINNING DR ROGOZINSKI LAST WEEK RECEIVED A VISIT FROM THE ELATED BUYERS OF A LONGTROUBLED GOVERNMENT STEEL MILL WHICH HAS TRIPLED PRODUCTION SINCE THEY BOUGHT IT IT SHOWS WHAT A MORE ENTREPRENEURIAL MENTALITY CAN DO SAYS JOHANNES SITTARD THE MILL'S MANAGING DIRECTOR OF COURSE NOT ALL PRIVATIZATIONS END SO HAPPILY INVESTORS PAID RICH PREMIUMS FOR STATEOWNED COMMERCIAL BANKS ONLY TO SEE NONPERFORMING LOANS SOAR THE AIRLINE CORP MEXICANA DE AVIACION SA BLED RED INK AFTER ITS PRIVATIZATION AND RECENTLY HAD TO BE RESCUED BY MEXICO'S OTHER CARRIER AEROMEXICO A UNIT OF AEROVIAS DE MEXICO SA DR ROGOZINSKI BLAMES THESE PROBLEMS ON THE WEAK WORLD ECONOMY BUT WHAT OF TELMEX WHOSE SERVICE HAS YET TO IMPROVE AS ITS STOCK PRICE HAS DR ROGOZINSKI GRABS FROM A CLOSET AN ARCHAIC LOOKING PILE OF COILS COGS AND WHEELS A CONTRAPTION THAT HAD SWITCHED CALLS IN A TELMEX COMMUNICATIONS CENTER FOR 59 YEARS UNTIL IT WAS RECENTLY REPLACED BY A DIGITAL SYSTEM SELLING THE COMPANY WAS EASY COMPARED TO WHAT MODERNIZING IT WILL BE HE SAYS 9303160052 930316 BUSINESS BRIEF CHASE MANHATTAN CORP COMPANY AGREES TO ACQUIRE PERELMAN'S TROY & NICHOLS CHASE MANHATTAN CORP SAID IT REACHED A TENTATIVE AGREEMENT TO ACQUIRE THE TROY & NICHOLS INC MORTGAGE COMPANY THE LAST REMAINING BUSINESS OF INVESTOR RONALD PERELMAN'S FIRST GIBRALTAR BANK THE SALE OF THE MORTGAGE COMPANY TERMS OF WHICH WEREN'T DISCLOSED CULMINATES THE EFFORTS OF THE NEW YORK FINANCIER TO UNLOAD HIS HOLDINGS OF THE LARGE TEXAS THRIFT WHICH HE PURCHASED IN A CONTROVERSIAL GOVERNMENTASSISTED DEAL IN 1988 LAST YEAR MR PERELMAN SOLD MOST OF THE THRIFT TO BANKAMERICA CORP FOR 110 MILLION AS HE BEGAN THE PIECEMEAL AUCTION OF HIS FIRST GIBRALTAR HOLDINGS FOR CHASE THE ACQUISITION OF TROY & NICHOLS WOULD PROVIDE THE COMPANY WITH RETAIL MARKET ACCESS IN FIVE SOUTHEASTERN STATES AND ADD 10 BILLION IN RESIDENTIAL MORTGAGES TO ITS 35 BILLION MORTGAGE PORTFOLIO TROY & NICHOLS OPERATES 21 OFFICES IN LOUISIANA TEXAS MISSISSIPPI TENNESSEE ALABAMA NEW MEXICO AND FLORIDA CHASE ALREADY HAS OFFICES IN TEXAS AND FLORIDA 9303160051 930316 BUSINESS BRIEF WR GRACE & CO COMPANY IS IN PACTS TO SELL 2 GRACE OFFSHORE DIVISIONS WR GRACE & CO BOCA RATON FLA SAID IT SIGNED DEFINITIVE AGREEMENTS TO SELL TWO DIVISIONS OF ITS GRACE OFFSHORE CO UNIT FOR 57 MILLION IN CASH AND NOTES GRACE A SPECIALTY CHEMICALS CONCERN SAID IT AGREED TO SELL GRACE OFFSHORE'S HUTHNANCE DRILLING DIVISION TO A JOINT VENTURE FORMED BY MIKE MULLEN ENERGY EQUIPMENT RESOURCES INC AND FALCON DRILLING CO A SECOND AGREEMENT CALLS FOR THE SALE OF THE BOOKER WORKOVER DIVISION OF GRACE OFFSHORE TO OFFSHORE RIGS LLC GRACE SAID THE DIVESTITURE IS PART OF ITS PLAN TO SHED NONSTRATEGIC BUSINESSES THE PROCEEDS INITIALLY WILL BE USED TO PAY DEBT AND SUBSEQUENTLY DEPLOYED TO EXPAND GRACE'S CORE SPECIALTY CHEMICALS AND HEALTHCARE BUSINESSES THE HUTHNANCE DIVISION A DRILLING RIG OPERATOR IN THE GULF OF MEXICO HAD 1992 SALES OF 21 MILLION THE BOOKER DIVISION WHICH PROVIDES OFFSHORE WORKOVER AND WELL COMPLETION RIGS HAD 1992 SALES OF MORE THAN 23 MILLION THE TRANSACTIONS WHICH ARE SUBJECT TO VARIOUS CONDITIONS ARE EXPECTED TO CLOSE IN THE SECOND QUARTER 9303160050 930316 TECHNOLOGY BY JOHN R WILKE WITH THE PROLIFERATION OF PERSONAL COMPUTERS CHILDREN SHOULD BE TAUGHT ONLINE ETIQUETTE AT AN EARLY AGE TO DISCOURAGE ILLEGAL HACKING AND THEFT OR MISUSE OF DATA SOME EDUCATORS AND COMPUTER USERS SAY IN ONE OF THE FIRST SUCH PROGRAMS STUDENTS AT A FEW ELEMENTARY SCHOOLS IN THE SAN FRANCISCO BAY AREA ARE LEARNING TO RESPECT THE PRIVACY OF OTHERS' DATA SHUN BOOTLEG PROGRAMS THAT COULD CARRY COMPUTER VIRUSES AND PROTECT THEIR PC PASSWORDS THE PROGRAM USING SONG PUPPETS AND VIDEO WAS CREATED AT LAWRENCE LIVERMORE NATIONAL LABORATORY LIVERMORE CALIF AFTER A PARENT AT A BERKELEY ELEMENTARY SCHOOL EXPRESSED INTEREST LONNIE MOORE LIVERMORE'S COMPUTERSECURITY MANAGER AND GALE WARSHAWSKY THE LAB'S COMPUTEREDUCATION COORDINATOR DEVISED A SESAME STREETLIKE APPROACH SUPPLEMENTED BY FOUR SHORT VIDEOS IN ONE GOOSEBERRY AN IMPROPERLY TRAINED PROGRAMMER LEAVES HER COMPUTER ON AND OFFICE DOOR UNLOCKED WHEN SHE GOES OUT TO LUNCH DIRTY DAN A HACKER WHO BREAKS THE RULES POPS IN READS WHAT IS ON HER SCREEN COPIES SOME DISKS AND ERASES OTHERS THE FIRST TIME MS WARSHAWSKY TAUGHT THE SESSION TO KIDS FROM KINDERGARTEN THROUGH THIRD GRADE EVEN THE YOUNGEST UNDERSTOOD THAT COMPUTER INFORMATION IS SOMETHING THAT NEEDS TO BE PROTECTED AND THAT USING SOMEBODY ELSE'S DATA WITHOUT PERMISSION IS STEALING SHE SAYS AFTER THE PROGRAM RECEIVED LOCAL MEDIA ATTENTION REACTION ON THE WELL A SAN FRANCISCO COMPUTER NETWORK AND GATHERING PLACE FOR ENTHUSIASTS AND A FEW SELFDESCRIBED HACKERS WAS MIXED KIDS NEED TO LEARN ONLINE MANNERS LIKE ANYTHING ELSE WROTE ONE OBSERVER THE MOTHER OF A YOUNG CHILD WHO SAYS SHE SEES RAMPANT PIRACY ON SOME NETWORKS BUT ANOTHER ASKED WHAT HAPPENED THE LAST TIME YOU TOLD A KID NOT TO PLAY WITH MATCHES BOSTON'S FENWAY PARK A BASEBALL SHRINE HASN'T SEEMED QUITE THE SAME SINCE A LUXURY SEATING SECTION WAS ADDED HIGH ABOVE HOME PLATE BEFORE THE 1989 SEASON SAYS AERONAUTICS PROFESSOR PAUL LAGACE OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE MOST NOTICEABLE CHANGE HAS BEEN A DROP IN THE NUMBER OF HOME RUNS WHICH DR LAGACE BLAMES IN PART ON A NEW WIND PATTERN EXPERIMENTING WITH A MODEL OF THE PARK IN A WIND TUNNEL HE SIMULATED A TYPICAL SUMMER NIGHT'S BREEZE BLOWING INTO THE PARK TOWARD LEFTCENTER FIELD HE FOUND THE NEW ROOFLINE CREATED A WIND THAT SWIRLS BACK TOWARD HOME PLATE AT GROUND LEVEL CUTTING ABOUT 10 FEET FROM AN AVERAGE LONG BALL TO CENTER FIELD NOW DR LAGACE THINKS HE MIGHT HAVE A SOLUTION HIS STUDENTS ARE CONDUCTING WINDTUNNEL SIMULATIONS OF A WINGSHAPED AIRFOIL MOUNTED ABOVE THE NEW SEATS RUNNING THE LENGTH OF THE NEW ROOFLINE AND FACING OUT OF THE PARK TO RESTORE THE AIRFLOW TO ITS ORIGINAL PATTERN ANOTHER POSSIBILITY IS TO INSTALL TALL THIN SAILLIKE STRUCTURES ON THE ROOF TO BREAK UP THE GROUNDLEVEL BACK WIND A RED SOX SPOKESMAN DISMISSES DR LAGACE'S FINDINGS MAYBE THERE'S SOME EFFECT IN A WIND TUNNEL WITH SMOKE AND LASERS BUT NOT IN THE REAL WORLD HE NOTES THAT WHILE THE TEAM'S HOMERUN OUTPUT HAS FALLEN SINCE 1989 BOTH AT FENWAY AND ON THE ROAD A GREATER PERCENTAGE OF ITS HOME RUNS HAVE COME AT FENWAY BUT DR LAGACE SAYS THOSE NUMBERS ARE TOO LIMITED TO BE STATISTICALLY SIGNIFICANT AND CAN'T TAKE INTO ACCOUNT OTHER VARIABLES SUCH AS THE QUALITY OF PITCHING COMPUTER CHIPS HAVE FOUND YET ANOTHER JOB CLEANING GASSTATION RESTROOMS SELFCLEANING RESTROOMS ARE BEING INSTALLED IN STATIONS IN CHICAGO AND INDIANAPOLIS BY AMOCO THE FIRST OF 40 EVALUATION UNITS PURCHASED BY THE BIG OIL COMPANY FROM SELFCLEANING ENVIRONMENTS SANTA MONICA CALIF THINK OF IT AS A PROGRAMMABLE ROOMSIZE DISHWASHER SUGGESTS WOODY GARVEY SELFCLEANING'S PRESIDENT THE RESTROOM LOOKS MUCH LIKE ANY OTHER FILLINGSTATION LAVATORY BUT FROM TIME TO TIME DURING THE DAY AN EMPLOYEE UNLATCHES AND SWINGS TOGETHER TWO BIG SECTIONS OF THE WALLS ON WHICH THE PLUMBING FIXTURES ARE MOUNTED WHEN HE HITS A BUTTON SENSORCONTROLLED HIGHPRESSURE NOZZLES SHOWER THE CLOSED ROOM WITH HOT WATER AND DISINFECTANT SOAP FOLLOWED BY A RINSE AND DRY CYCLE THE PROCESS TAKES 22 MINUTES FASTER THAN CLEANING BY EMPLOYEES SAYS JOHN JORDAN MANAGER OF AN AMOCO STATION IN BOLINGBROOK ILL ONE OF THE FIRST TEST SITES ENERGY COSTS RUN AROUND 150 PER USE SELFCLEANING SAYS JUST A FRACTION OF THE COST OF THE LABOR ALONE NEEDED FOR OLDFASHIONED CLEANING THE COMPANY HAS TARGETED OTHER OIL AND FASTFOOD BUSINESSES FOR FUTURE SALES ONE DRAWBACK IS THAT EACH UNIT NOW COSTS 25000 BUT IN VOLUME PRODUCTION THE PRICE SHOULD FALL TO ABOUT 15000 MR GARVEY SAYS MOST CUSTOMERS DON'T NOTICE ANY DIFFERENCE MR JORDAN SAYS BUT THOSE WHO DO WANT TO KNOW IF THEY CAN GET ONE FOR THEIR HOME THE COMMON VIDEOCASSETTE HASN'T CHANGED MUCH IN A DECADE EXCEPT THAT NEARLY ALL MANUFACTURING HAS MOVED OFFSHORE NOW A WESTBROOK MAINE STARTUP SAYS IT HAS A LIGHTWEIGHT DESIGN THAT IS INEXPENSIVE RUGGED RECYCLABLE AND MADE IN THE US THE VIDEOCASSETTE FROM GLOBAL ZERO IS DESIGNED TO BE MADE LARGELY BY ROBOTS IN CONTRAST TO LABORINTENSIVE ASIAN PRODUCERS FROM RECYCLED PLASTIC AND TO BE EASILY RECYCLED ITSELF IT CONSISTS OF FOUR PIECES OF POLYPROPYLENE AND TWO TINY METAL SPRINGS THE STANDARD DESIGN HAS 32 PIECES INCLUDING MIXED PLASTICS THAT ARE HARD TO RECYCLE GLOBAL ZERO HAS BEEN IN PRODUCTION SINCE MIDJANUARY ON ITS FIRST BIG ORDER HENRY BRIEF EXECUTIVE VICE PRESIDENT OF ITA A TAPE AND DISK MANUFACTURERS ASSOCIATION SAYS IT'S TOO EARLY TO TELL WHETHER THE NEW DESIGN WILL SELL STILL HE SAYS IF IT WORKS AS THEY CLAIM IT COULD BE A BIG HIT 9303160049 930316 BUSINESS BRIEF VALUE LINE INC QUARTERLY PROFIT HIT RECORD DESPITE SIZABLE WRITEDOWN VALUE LINE INC SAID IT HAD RECORD FISCAL THIRDQUARTER NET INCOME DESPITE A SIZABLE WRITEDOWN OF ASSETS MAINLY FOR COMPUTER EQUIPMENT THE INVESTMENT PUBLICATION AND INVESTMENT MANAGEMENT CONCERN SAID IN NEW YORK THAT NET INCOME FOR THE JAN 31 QUARTER WAS 107 MILLION OR 108 A SHARE UP FROM YEAREARLIER NET OF 104 MILLION OR 105 A SHARE REVENUE ROSE TO 198 MILLION FROM 193 MILLION THE LATEST QUARTER'S FIGURES INCLUDED A 750000 WRITEDOWN OF ASSETS REFLECTING A PROGRAM TO UPGRADE THE COMPANY'S COMPUTER SYSTEMS THE WRITEDOWN REDUCED NET INCOME BY 436000 OR FOUR CENTS A SHARE THE COMPANY SAID REVENUE FROM ITS VALUE LINE INVESTMENT PUBLICATIONS ROSE TO 14 MILLION IN THE QUARTER FROM 137 MILLION A YEAR EARLIER THE QUARTERLY RESULTS ALSO INCLUDED INVESTMENT INCOME OF ALMOST 10 MILLION UP FROM 91 MILLION 9303160048 930316 INTERNATIONAL BRIEF JOHN FAIRFAX HOLDINGS LTD KERRY PACKER'S TV NETWORK ACQUIRES 5 STAKE IN FIRM AUSTRALIAN BILLIONAIRE KERRY PACKER HAS ACQUIRED INDIRECTLY A 5 STAKE IN JOHN FAIRFAX HOLDINGS LTD A MAJOR AUSTRALIAN NEWSPAPER PUBLISHER FAIRFAX IS CONTROLLED BY CANADIAN PUBLISHER CONRAD BLACK WHOSE DAILY TELEGRAPH PLC UNIT OWNS 15 OF THE AUSTRALIAN COMPANY MR BLACK PREVIOUSLY HAS ASKED THE AUSTRALIAN GOVERNMENT FOR PERMISSION TO RAISE HIS STAKE BUT WAS REFUSED UNDER CANBERRA'S FOREIGNINVESTMENT RULES MR PACKER'S TELEVISION NETWORK NINE NETWORK AUSTRALIA LTD DISCLOSED MONDAY THAT IT HAS BUILT A STAKE OF 33 MILLION SHARES IN FAIRFAX ABOUT 5 OF THE COMPANY THE FAIRFAX SHARES WERE ACQUIRED OVER SEVERAL MONTHS FOR 50 MILLION AUSTRALIAN DOLLARS US356 MILLION OR AN AVERAGE COST OF A151 EACH NINE NETWORK IN WHICH MR PACKER HAS A 42 INTEREST SAID IT HAS NO CURRENT PLANS TO RAISE ITS HOLDING IN FAIRFAX 9303160047 930316 ABREAST OF THE MARKET STOCKS CLIMB IN SLOWEST SESSION OF '93 BOOSTED BY BUY PROGRAMS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A LATE SURGE OF COMPUTERGUIDED BUY PROGRAMS PROPELLED STOCKS MODERATELY HIGHER IN THE SLOWEST TRADING SESSION OF 1993 THE MARKET'S RESILIENCE SURPRISED SOME STOCK ANALYSTS WHO WERE EXPECTING THE RECENT UPTICK IN INTEREST RATES TO WEIGH ON STOCK PRICES THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1459 POINTS TO 344241 STANDARD & POOR'S 500STOCK INDEX GAINED 160 POINTS TO 45143 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 081 TO 24897 THE MARKET SEEMS TO ABSORB EVERY BIT OF BAD NEWS THAT COMES OUT WHETHER IT'S TURMOIL IN RUSSIA OR HIGHER INTEREST RATES SAID TOM GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER ON THE BIG BOARD ADVANCING ISSUES EDGED OUT DECLINERS 1029 TO 842 VOLUME WAS RELATIVELY LIGHT WITH 192690000 SHARES CHANGING HANDS DOWN FROM 244740000 SHARES FRIDAY SOME TRADERS ATTRIBUTED THE DROPOFF IN TRADING TO A DEVASTATING WINTER BLIZZARD THAT SWEPT THROUGH THE NORTHEAST OVER THE WEEKEND AND LEFT MANY PEOPLE HOMEBOUND OTHER TRADERS NOTED THAT A FIRE ON THE 25TH FLOOR OF 85 BROAD ST THE HOME OF GOLDMAN SACHS TEMPORARILY DISRUPTED TRADING AT THE INVESTMENT BANK STOCKS STARTED THE DAY HIGHER AND MANAGED TO HOLD THEIR GAINS EVEN AS BOND PRICES FELL ON SIGNS THAT INFLATION MAY BE ACCELERATING THE MOST COMPELLING EVIDENCE ON THIS FRONT WAS A SURGE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS WHICH RALLIED 240 POINTS YESTERDAY TO 21019 LARGELY ON THE HEELS OF GAINS IN SOME FOODSTUFFS AND LUMBER AMONG THE STOCKS THAT FARED THE BEST YESTERDAY WERE SOCALLED CYCLICAL STOCKS OF COMPANIES WHOSE FORTUNES ARE TIED TO THE ECONOMIC CYCLE ALUMINUM CO OF AMERICA JUMPED 1 1/4 TO 70 3/4 ALLIEDSIGNAL ADDED 3/4 TO 67 5/8 AND INTERNATIONAL PAPER ROSE 1 1/8 TO 65 1/8 THE AGGREGATE GAIN OF ALL THREE ACCOUNTED FOR NEARLY HALF THE OVERALL INCREASE IN THE DOW JONES INDUSTRIALS OIL STOCKS ALSO ROSE HELPED BY THE RECENT FIRMING IN OIL PRICES MOBIL LEAPT 1 1/4 TO 68 1/8 TEXACO EDGED UP 1/2 TO 62 3/8 AND EXXON GAINED 5/8 TO 63 1/4 CASINO STOCKS WERE ALSO STRONG CIRCUS CIRCUS ENTERPRISES RACKED UP 1 TO 50 INTERNATIONAL GAME TECHNOLOGY SOARED 2 TO 61 5/8 AND PROMUS ADDED 5/8 TO 70 MR GALLAGHER OF OPPENHEIMER SAID THE RALLY IN CASINO STOCKS IS ONE SIGN THAT THE RALLY IN STOCKS IS NEARING ITS PEAK IT'S LATE IN THE CYCLE WHEN YOU GET THE CASINOS RALLYING MR GALLAGHER REMARKED HOWEVER HE ADDED THAT INTEREST RATES WOULD HAVE TO RISE SIGNIFICANTLY AND MONEY WOULD HAVE TO STOP FLOODING INTO MUTUAL FUNDS BEFORE STOCK PRICES CORRECT NIKE JUMPED 4 5/8 TO 76 3/8 THE SHOE COMPANY EARNED 116 A SHARE FOR ITS THIRD QUARTER ENDED IN FEBRUARY SLIGHTLY BELOW ANALYSTS' EXPECTATIONS BUT ABOVE NIKE'S FISCAL 1992 THIRDQUARTER EARNINGS OF 108 GENERAL MOTORS FELL FROM ITS PEAK TO END UP 1/2 AT 38 7/8 THE AUTO MAKER SAID ITS PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA RESIGNED FROM THE COMPANY AFTER ALL OTHER AUTO STOCKS ALSO ADVANCED HELPED BY REPORTS THAT CAR SALES REBOUNDED IN EARLY MARCH AFTER SLUMPING IN LATE FEBRUARY CHRYSLER ONE OF THE MOST ACTIVELY TRADED STOCKS ON THE BIG BOARD CHALKED UP 1 1/8 TO 39 1/2 FORD ROSE 5/8 TO 48 7/8 PITTSTON ADVANCED 3/4 TO 16 1/4 THE COMPANY SAID ITS BOARD APPROVED CREATION OF A PLAN TO DIVIDE ITS COMMON STOCK INTO TWO CLASSES TO SEPARATELY TRACK ITS MINERALS AND SERVICE BUSINESSES THE MOVE IS SUBJECT TO SHAREHOLDER APPROVAL RESPONDING IN PART TO THE PITTSTON PLAN MERRILL LYNCH ANALYST DON ROLING RAISED HIS NEARTERM INVESTMENT RATING ON THE COMPANY TO ABOVE AVERAGE FROM NEUTRAL DIGITAL COMMUNICATIONS ASSOCIATES FELL 2 1/8 TO 17 1/8 THE COMPANY SAID LATE FRIDAY IT EXPECTS TO REPORT BREAKEVEN INCOME BEFORE CHARGES FOR ITS THIRD QUARTER ENDING MARCH 31 SUNBEAMOSTER SLIPPED 3/8 TO 16 5/8 A DONALDSON LUFKIN & JENRETTE ANALYST SAID HE CUT HIS RATING ON SUNBEAMOSTER TO MODERATELY ATTRACTIVE FROM VERY ATTRACTIVE BEAR STEARNS WAS ONE OF THE MOST ACTIVE STOCKS ON THE BIG BOARD ENDING UNCHANGED AT 17 1/2 A SPOKESWOMAN FOR THE COMPANY SAID SHE DIDN'T KNOW WHO SOLD A 117 MILLIONSHARE BLOCK OF BEAR STEARNS STOCK EQUIVALENT TO 11 OF ITS COMMON SHARES OUTSTANDING PHILIP MORRIS WAS THE THIRD MOST ACTIVELY TRADED STOCK ON THE BIG BOARD SLIDING 1/2 TO 64 5/8 MARK STROME A HEDGE FUND MANAGER SUGGESTS IN THE CURRENT ISSUE OF BARRON'S THAT INVESTORS SHORT THE STOCK A BET THAT THE PRICE WILL DROP TO SELL SHORT AN INVESTOR SELLS BORROWED SHARES IN THE HOPE OF REPLACING THEM AT A LOWER COST WHEN PRICES FALL RJR NABISCO ANOTHER TOBACCO STOCK MR STROME ADVISED INVESTORS TO SHORT ENDED UNCHANGED AT 8 1/4 ETHAN ALLEN INTERIORS SOLD 73 MILLION COMMON SHARES IN AN INITIAL PUBLIC OFFERING PRICED AT 18 EACH THE FURNITURE MAKER'S STOCK WAS OFFERED TO THE PUBLIC THROUGH UNDERWRITERS LED BY KIDDER PEABODY THE STOCK OFFERING IS CRUCIAL TO ETHAN ALLEN'S RECOVERY FROM ONE OF THE SORRIER 1980S MERGER FIGHTS ON WALL STREET A MANAGEMENTLED GROUP BOUGHT THE COMPANY FOR 388 MILLION FROM THENPARENT INTERCO AS PART OF INTERCO'S ILLFATED 1989 RESTRUCTURING INTERCO TUMBLED INTO BANKRUPTCY ADVISER WASSERSTEIN PERELLA SETTLED AN INTERCO LAWSUIT ACCUSING IT OF NEEDLESSLY DELAYING THE ETHAN ALLEN SALE AND THE FURNITURE CONCERN WAS LEFT WITH A LOT OF DEBT JUST AS THE INDUSTRY WAS STRUGGLING THE 1314 MILLION OFFERING IS PART OF A FINANCIAL OVERHAUL DESIGNED TO ERASE HALF THE COMPANY'S 3184 MILLION OF DEBT 9303160046 930316 INTERNATIONAL BRIEF WESTPAC BANKING CORP AUSTRALIAN FIRM WILL CUT 2000 JOBS SETS REVAMPING WESTPAC BANKING CORP SAID IN SYDNEY AUSTRALIA THAT IT WILL ELIMINATE 2000 JOBS TO CUT OPERATING COSTS IN ITS RETAIL BANK BY 150 MILLION AUSTRALIAN DOLLARS US1067 MILLION A YEAR MOST OF THE JOB CUTS WILL OCCUR IN THE NEXT THREE MONTHS ROBERT JOSS WHO JOINED WESTPAC LAST MONTH AS MANAGING DIRECTOR SAID A RESTRUCTURING OF THE BANK'S RETAIL OPERATIONS WILL SHARPEN ITS FOCUS ON CUSTOMER SERVICE QUALITY AND REDUCE OPERATING COSTS UNDER THE NEW STRUCTURE THERE WILL BE SEPARATE CONSUMER AND COMMERCIAL BUSINESS FUNCTIONS WHICH WILL EACH REPORT TO THE HEAD OFFICE 9303160045 930316 DIVIDEND NEWS DANAHER CORP DANAHER CORP DECLARED AN INITIAL QUARTERLY DIVIDEND OF THREE CENTS A SHARE PAYABLE APRIL 16 TO SHARES OF RECORD MARCH 26 THE TOOL PROCESS CONTROL AND TRANSPORTATION PRODUCTS COMPANY WITH 1992 REVENUE OF 956 MILLION SAID THE DIVIDEND REFLECTS CONSISTENT CASH FLOW AND STRONG CAPITAL STRUCTURE 9303160044 930316 LAW BOSTON UNIVERSITY TARGETED BY STATE FOR ALLEGED ABUSES BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE MASSACHUSETTS ATTORNEY GENERAL SAID HE WILL TAKE ACTION AGAINST ALLEGED ABUSES OF GOVERNANCE AND CONFLICTOFINTEREST POLICIES AT BOSTON UNIVERSITY THAT RESULT IN FINANCIAL GAINS FOR ITS CONTROVERSIAL PRESIDENT JOHN SILBER ATTORNEY GENERAL SCOTT HARSHBARGER SAID AN INVESTIGATION FOUND THAT DR SILBER THE UNSUCCESSFUL DEMOCRATIC CANDIDATE FOR GOVERNOR IN 1990 PROFITED FROM THE UNIVERSITY'S SALE OF ITS STAKE IN A MEDICAL DIAGNOSTICS COMPANY SERADYN INC IN 1989 TO A JAPANESE COMPANY THE PAYMENT ITSELF WASN'T ILLEGAL AND DR SILBER DIDN'T VIOLATE ANY LAWS BUT IT RAISES QUESTIONS ABOUT THE SCHOOL'S POLICIES MR HARSHBARGER SAID DESPITE DR SILBER'S DENIALS MR HARSHBARGER SAID THE UNIVERSITY PRESIDENT RECEIVED 386700 FROM THE SCHOOL IN CONNECTION WITH THE SALE OF THE SERADYN STAKE TO MITSUBISHI KASEI MOREOVER THE ATTORNEY GENERAL ADDED THAT THERE IS CREDIBLE EVIDENCE THAT THE UNIVERSITY WILLFULLY FILED A FALSE REPORT BY NOT DISCLOSING THE PAYMENT TO DR SILBER IN DOCUMENTS THAT THE SCHOOL AS A NONPROFIT ENTITY MUST FILE WITH THE STATE DR SILBER AT A NEWS CONFERENCE SAID HE RETURNED THE MONEY TO THE UNIVERSITY AND THUS WAS CORRECT IN CONTENDING THAT HE NEVER RECEIVED ANY BENEFIT FROM THE SALE OF SERADYN THE PAYMENT MADE TO ME WAS NOT MADE IN THE MANNER AUTHORIZED BY THE UNIVERSITY AND AS SOON AS THIS ERROR WAS CALLED TO MY ATTENTION I RETURNED THE PAYMENT TO THE UNIVERSITY HE SAID BOSTON UNIVERSITY HAD NO COMMENT THE UNIVERSITY HAS ACKNOWLEDGED IN THE PAST THAT ITS TRUSTEES GRANTED DR SILBER STOCK OPTIONS FOR SERADYN STOCK BUT IT HAS SAID THAT HE DIDN'T EXERCISE THE OPTIONS DR SILBER'S SUPPORTERS HAVE SAID THAT HE HAS GREATLY IMPROVED THE EDUCATIONAL STANDARDS AND THE FINANCIAL CONDITION OF BOSTON UNIVERSITY SINCE HE BECAME PRESIDENT IN THE EARLY 1970S AND DESERVES TO BE COMPENSATED HIGHLY FOR HIS PERFORMANCE HOWEVER CRITICS HAVE SAID THAT ANY PAYMENTS DR SILBER AND OTHERS RECEIVED AS A RESULT OF THE UNIVERSITY'S INVESTMENTS WOULD REPRESENT CONFLICTS OF INTEREST THE REPORTED PAYMENTS HAVE PARTICULARLY ANGERED CRITICS OF DR SILBER BECAUSE HE ALREADY IS AMONG THE HIGHEST PAID UNIVERSITY PRESIDENTS IN THE NATION WITH AN ANNUAL SALARY OF 275000 DEFERRED COMPENSATION THAT IS REPORTEDLY 40 OF HIS ANNUAL SALARY AND PAYMENTS REPORTED AT 13 MILLION OVER THE YEARS FOR NOT TAKING LEAVES OF ABSENCE THAT HE WAS ENTITLED TO MR HARSHBARGER SAID TRUSTEES AND OFFICERS AS WELL AS THE PUBLIC MUST KNOW THAT NONPROFIT AND CHARITABLE INSTITUTIONS ARE NOT TO BE INSTRUMENTS FOR PERSONAL GAIN OR SELFINTEREST EVEN IF THE CHARITY PROSPERS HE ALSO CRITICIZED TRUSTEE MONITORING AND OVERSIGHT OF UNIVERSITY MANAGEMENT AND SAID HE WILL TAKE CIVIL ACTION AGAINST THE UNIVERSITY TO ENFORCE THE FIDUCIARY OBLIGATIONS OF TRUSTEES AND SENIOR OFFICERS 9303160043 930316 MONGOLIA'S LAMENT IN THE POSTSOVIET ERA A NATION OF NOMADS WANDERS INTO OBLIVION AFTER 70 YEARS AS A SATELLITE IT BUILDS ALMOST NOTHING AND WINTER IS VERY COLD NEEDED A PRIMER ON BUSINESS BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL ULAN BATOR MONGOLIA AS A SIBERIAN WIND SHAKES ICEENCRUSTED WINDOWS GEYSERS OF STEAM SHRIEK FROM CRACKED PIPES AND A THUNDERING COAL CRUSHER RATTLES APART WHATEVER MACHINERY ISN'T ALREADY BROKEN OYDOVYN DAGVADORJ AND FIVE COWORKERS ROLL DICE IN THE LOCKER ROOM OF POWER PLANT NO 4 TO PASS THE TIME IF THIS 600MEGAWATT RATTLETRAP QUITS RUNNING HALF THE PEOPLE IN THIS CITY OF 550000 FACE FREEZING TO DEATH AND THE ENTIRE COUNTRY'S GASPING ECONOMY COULD FINALLY SUFFOCATE NOW WE'RE TAKING COAL FROM THE RAIL CARS AND PUTTING IT DIRECTLY INTO THE BOILERS SAYS MR DAGVADORJ HIS TEETH AND EYES BEAMING FROM A SOOTCOVERED FACE LIKE THIS POWER PLANT A 1983 GIFT FROM THE SOVIET UNION THAT GENERATES 70 OF THE COUNTRY'S ELECTRICITY MONGOLIA IS OPERATING ON THE EDGE OF DISASTER THREE YEARS AGO THIS LAND OF HERDERS AND NOMADS TRAPPED BETWEEN RUSSIA AND CHINA WAS HAILED AS THE ONE FORMER SOVIET CLIENT POISED FOR A QUICK TURNAROUND INSTEAD MONGOLIA IS BECOMING A BELOWZERO BANGLADESH EACH DAY IS ANOTHER ROLL OF THE DICE AS FOREIGN AID ORIGINALLY INTENDED FOR ECONOMIC DEVELOPMENT IS SHOVELED STRAIGHT INTO EFFORTS TO KEEP ITS PEOPLE FROM STARVING OR FREEZING MEANWHILE MONGOLIA'S SEVENDECADE DEPENDENCE ON THE SOVIET UNION HAS SHIFTED TO THE UNITED NATIONS AND OTHER DONORS AND THOSE WELLINTENTIONED BUREAUCRATS ARE DISPLAYING LITTLE MORE BUSINESS SENSE THAN THE SOVIETS UNFORTUNATELY WE DON'T HAVE A PHILOSOPHY OF DEVELOPMENT WE DON'T HAVE A COMPREHENSIVE PLAN OF DEVELOPMENT AND UNFORTUNATELY WE ARE FACING ECONOMIC COLLAPSE AND CRISIS SAYS A MONGOLIAN FOREIGN MINISTRY SPOKESMAN TS CHIMIDDORG THERE WAS GOOD REASON FOR HOPE WHEN STREET DEMONSTRATIONS IN LATE 1989 FORCED THE GOVERNMENT TO JETTISON COMMUNISM ADOPT DEMOCRACY AND SEND HOME 50000 SOVIET CIVILIANS AND 30000 SOVIET SOLDIERS IN MONGOLIA FOUR TIMES THE SIZE OF CALIFORNIA FARM ANIMALS OUTNUMBER PEOPLE BY A RATIO OF 13 TO 1 THE ABUNDANT NATURAL RESOURCES INCLUDE SOME 80 MINERALS RANGING FROM GOLD TO COPPER TO CRUDE OIL TO COAL MORE THAN 90 OF MONGOLIA'S 22 MILLION PEOPLE ARE LITERATE AND THE COUNTRY HAS THOUSANDS OF EAGER YOUNG PEOPLE EDUCATED IN SOVIETBLOC UNIVERSITIES WHO ARE BRIMMING WITH IDEAS ON HOW TO BUILD A MARKET ECONOMY BUT OLD HABITS DIE HARD MONGOLIANS DISPLAY FEW INSTINCTS FOR DOING BUSINESS OR GOVERNING THEMSELVES WHEN SOVIET OFFICIALS RAN ALMOST EVERY GOVERNMENT AGENCY AND FACTORY MONGOLIAN CADRES WERE ASSIGNED SUCH BUSYWORK AS WRITING DETAILED WEEKLY MONTHLY AND YEARLY PLANS THE MOST STRIKING THING ABOUT MONGOLIAN MINISTRIES TODAY IS THE COMPLETE ABSENCE OF PAPERS ON THE DESKS OF BOTH OFFICIALS AND THEIR SECRETARIES BUREAUCRATS STILL APPEAR TO BE WAITING FOR OTHERS TO TELL THEM WHAT TO DO AND FOREIGNERS HAVE TO BE CAREFUL WITH IDLE COMMENTS WHEN THE BRITISH AMBASSADOR MENTIONED THAT HE HAD A PRIVATE GARDEN THAT PROVIDED GREEN VEGETABLES FOR THE EMBASSY THE RULING PARTY'S SECRETARY GENERAL ORDERED A COMPREHENSIVE GOVERNMENT STUDY OF GARDENING SINCE THE SOVIET WITHDRAWAL INFLATION HAS BEEN RUNNING AT MORE THAN 300 GRAIN PRODUCTION HAS DROPPED BY MORE THAN 40 IN THREE YEARS LAST YEAR ALONE FOOD PRODUCTION PLUNGED 23 AND COAL MINING FELL 23 THE AMERICAN JAPANESE AND SOUTH KOREAN BUSINESSMEN WHO FLOODED TO MONGOLIA IN 1990 WITH DREAMS OF INVESTMENT HAVE ALL GONE HOME IN MANY CASES THE PLANS FELL APART BECAUSE THE MONGOLIANS WERE UNABLE TO INVEST THE MONEY THEY HAD PROMISED DIPLOMATS AND AID OFFICIALS IN ULAN BATOR ARE FULL OF STORIES OF HOW IN THE FINAL STAGES OF CONTRACT NEGOTIATIONS MONGOLIANS WOULD SAY SUCH THINGS AS WE HAVE ONE LAST QUESTION JUST WHAT IS A PROFIT ALL THE FOREIGNERS BASE THEIR VIEWS ON THE FALSE ASSUMPTION THAT MONGOLIANS SHARE THEIR BASIC UNDERSTANDING OF PRIVATE PROPERTY HARD WORK AND COMPETITION SAYS RINCHINNYAMYN AMARJARGAL A 32YEAROLD MOSCOWTRAINED ECONOMIST WHO IS DEAN OF THE NEW ECONOMIC COLLEGE HIS INSTITUTE HAS A FACULTY OF 45 TEACHERS AVERAGE AGE 24 WHO TEACH BUSINESS AND MARKET ECONOMICS TO CHANGE THIS SITUATION WE AT LEAST MUST GO THROUGH ONE MORE GENERATION HE SAYS SOME OF THE YOUNG TURKS ARE DRIVING THE COUNTRY INTO BANKRUPTCY AFTER ATTENDING A HARVARDSPONSORED SEMINAR ON MARKET ECONOMICS A GROUP OF YOUNG CENTRALBANK EMPLOYEES ONE ONLY 19 YEARS OLD LOST THE COUNTRY'S ENTIRE 100 MILLION FOREIGNEXCHANGE RESERVES SPECULATING ON INTERNATIONAL CURRENCY MARKETS THE ONLY SIGN OF PROGRESS IS A STEEL MILL BEING BUILT WITH A 65 MILLION LOAN FROM JAPAN BUT IT HAS ONE SMALL PROBLEM IT WILL CLOSE THE DAY AFTER COMPLETION BECAUSE THE MILL IS DESIGNED TO FEED ON SCRAP METAL AND MONGOLIA HAS ALMOST NONE I THINK MANY PEOPLE IN MONGOLIA DREAM OF THE GOLDEN OLD DAYS AND MAYBE THEY ARE RIGHT TO SOME EXTENT SAYS PRIME MINISTER PUNTSAGIYN JASRAI A ONETIME MEMBER OF MONGOLIA'S COMMUNIST PARTY POLITBURO THE OLD DAYS BEGAN IN 1924 WHEN MONGOLIA DECLARED ITSELF THE WORLD'S SECOND COMMUNIST STATE THEREBY ESCAPING FROM SEVERAL HUNDRED YEARS OF CHINESE DOMINATION AND BECOMING A SOVIET COLONY WITH SPENDING THAT TOTALED SOME 800 MILLION ANNUALLY BY THE 1980S THE SOVIETS GAVE MONGOLIA AN ECONOMY THAT EXPORTED COPPER AND CASHMERE TO AND IMPORTED ALMOST EVERYTHING ELSE FROM THE SOVIET UNION TODAY MONGOLIA CAN'T MAKE A LIGHTBULB ASSEMBLE A BICYCLE MANUFACTURE AN ASPIRIN PRODUCE A DROP OF GASOLINE OR EVEN PRINT ITS OWN CURRENCY AND STAMPS ABOUT HALF THE POPULATION STILL LIVES IN YURTS CIRCULAR TENTS MADE OF FELT AND IF POWER PLANT NO 4 BREAKS DOWN MOST EVERYBODY ELSE WILL BE IN YURTS OR FROZEN TO DEATH ON THE WINTER DAY THAT MR DAGVADORJ AND HIS FRIENDS ROLL DICE TO RELAX STATE RADIO HAS ANNOUNCED THAT THE GOVERNMENT CAN'T GUARANTEE ULAN BATOR'S HEAT SUPPLY WITH NIGHT TEMPERATURES AVERAGING MINUS 40 DEGREES THE US EMBASSY HAS WARNED AMERICAN CITIZENS TO BE READY FOR EVACUATION AT ANY TIME THE PLANT IS A MICROCOSM OF THE COUNTRY'S ECONOMY THE ONLY REASON IT IS STILL WORKING IS THAT JAPAN DONATES SPARE PARTS AND AN EMERGENCY US AIRLIFT IN DECEMBER BROUGHT IN 118 TONS OF EQUIPMENT TO KEEP OPEN THE COAL MINE THAT SUPPLIES IT THANKS TO SOVIET CENTRALIZATION THE PLANT'S BOILERS SUPPLY HOT WATER TO ALL THE RADIATORS IN ULAN BATOR SHOULD THE POWER PLANT STOP THE CITY'S NETWORK OF WATER PIPES WOULD FREEZE SOLID IN 12 HOURS THE COAL MINE WOULD ALSO COME TO A STANDSTILL BECAUSE ITS EXTRACTION EQUIPMENT IS POWERED BY THE PLANT'S ELECTRICITY WE'VE BEEN CLOSE TO CATASTROPHE FOR THE PAST THREE YEARS SAYS DELGERIIN MISHA OF THE MINISTRY OF FUEL AND ENERGY THE LARGEST AND LAST SOVIET GIFT TO MONGOLIA IS THE INDUSTRIAL CITY OF DARKHAN 135 MILES NORTH OF THE CAPITAL ULAN BATOR THE ROAD TO DARKHAN IS ONE OF JUST TWO PAVED RURAL ROADS IN MONGOLIA IN MIDWINTER IT IS AN ICY PATH ACROSS SNOWCOVERED PLATEAUS THERE IS LITTLE TRAFFIC TO DISRUPT THE WOLVES AND HUGE BLACK BIRDS THAT GATHER TO FEED ON THE OCCASIONAL COW OR CAMEL CARCASS LYING FROZEN AT THE ROADSIDE THE HERDERS WHO LIVE IN THE COUNTRYSIDE HAVE SO FAR KEPT MONGOLIA FROM STARVING WITH THE STATE FOOD DISTRIBUTION SYSTEM IN TATTERS AND NO REAL MARKET EMERGING TO REPLACE IT HERDERS NOW GET ONLY ABOUT 2 FOR A SHEEP SO MOST MEAT IS STAYING ON THE HOOF MANY MONGOLIAN CITY DWELLERS SURVIVE BY GETTING BIG HUNKS OF MEAT FROM RELATIVES IN THE COUNTRYSIDE THEY HANG IT OUTSIDE THEIR APARTMENT WINDOWS AND WHITTLE AWAY AT IT ALL WINTER DARKHAN POPULATION 75000 TOOK OFF IN THE LATE 1970S WHEN SOVIET LEADER LEONID BREZHNEV MADE HIS LAST STAB AT PROVING THE SUPERIORITY OF SOCIALISM HE TWISTED ARMS THROUGHOUT EASTERN EUROPE TO BUILD AN INDUSTRIAL CITY FOR MONGOLIA DARKHAN WAS HALFDONE WHEN THE SYSTEM COLLAPSED AMONG DARKHAN'S UNFINISHED TRIBUTES TO COMRADELY KINDNESS ARE A POLISH BRICKWORKS A BULGARIAN TANNERY A RUSSIAN FARMMACHINERY FACTORY AND A HUNGARIAN SLAUGHTERHOUSE THE SOVIETS NEVER GOT AROUND TO BUILDING THE CITY'S CENTERPIECE A STEEL MILL BUT THANKS TO THE UN INDUSTRIAL DEVELOPMENT ORGANIZATION AND JAPAN'S IMPORTEXPORT BANK 700 RUSSIAN WORKERS ARE NOW CONSTRUCTING THE 100000TON MINIMILL MONGOLIAN PLANNERS FIGURED THAT THE COUNTRY SURELY HAD ENOUGH OVERTURNED TRUCKS AND RUSTING MACHINERY SCATTERED ACROSS THE STEPPES TO PROVIDE SUFFICIENT SCRAP METAL TO FEED SUCH A MILL NEITHER THE UN NOR JAPAN QUESTIONED THE CLAIM DURING FEASIBILITY STUDIES SO NOW FOR THE MILL TO OPEN SOME 70 MILLION MORE IS NEEDED TO BUILD A SPONGE IRON PLANT TO FEED IT AS MUCH AS 200 MILLION MORE WILL BE REQUIRED TO DEVELOP IRON MINES TO SUPPLY THAT PLANT SUCH SUMS WON'T BE EASY TO RAISE IN A COUNTRY WHERE THE CENTRAL BANK HAS DEFAULTED ON ITS 5 MILLION BUILDING RENOVATION MONGOLIA HASN'T PAID A SIMILAR SUM IT OWES TO AN AUSTRIAN COMPANY FOR TRANSFORMING A CHILDREN'S MOVIE THEATER INTO THE COUNTRY'S YEAROLD STOCK EXCHANGE ON PAPER MONGOLIA HAS PRIVATIZED STATE ENTERPRISE FASTER THAN ANY OTHER COMMUNIST STATE IN REALITY THE YOUNG TURKS HAVE CREATED WHAT AMOUNTS TO A MINISTRY OF STOCKS IN 1991 A GROUP OF SOVIETTRAINED ECONOMISTS GOT TOGETHER AND ESTIMATED THAT MONGOLIA'S STATE ENTERPRISE ASSETS WERE WORTH 20 BILLION TUGRIKS 133 MILLION AT THE CURRENT OFFICIAL EXCHANGE RATE AND 57 MILLION AT TODAY'S BLACKMARKET RATE DIVIDING THIS BY THE POPULATION GAVE EACH MONGOLIAN A 10000TUGRIK STAKE TWO TYPES OF COUPONS WERE ISSUED EACH CITIZEN WAS GIVEN ONE BLUE COUPON WORTH 7000 TUGRIKS AND THREE PINK COUPONS WORTH 1000 TUGRIKS EACH AUCTIONS ARE HELD AT WHICH PEOPLE CAN TRADE THEIR COUPONS FOR STOCKS IN STATE COMPANIES SO FAR 240 OF THESE COMPANIES HAVE BEEN AUCTIONED AND THEIR SHARES LISTED ON THE EXCHANGE THE MARKET IS NOW OPEN TWICE A WEEK BUT NO MONEY HAS CHANGED HANDS BECAUSE NO SECONDARY TRADING HAS TAKEN PLACE THE EXCHANGE DIRECTORS ALL IN THEIR 20S HOPE THAT SUCH TRADING WILL BEGIN THIS YEAR I THINK DURING THIS INITIAL PERIOD WE ARE NOT CAUSING VERY BIG CHANGES IN HOW COMPANIES ARE MANAGED BUT I THINK WE EVENTUALLY WILL SAYS OCHIRBAL ENKHBAYAR A 29YEAROLD CZECHOSLOVAKTRAINED ECONOMIST WHO SERVES AS THE EXCHANGE VICE CHAIRMAN ON THE STREETS MONGOLIA STILL APPEARS ENTIRELY STATERUN PEOPLE WITH RATION TICKETS LINE UP OUTSIDE FOOD STORES TO PURCHASE WHEN SUCH THINGS ARE AVAILABLE LITTLE BAGS OF RICE AND FLOUR OR THE RARE TIN OF VEGETABLES ONE OF THE FEW SIGNS OF PRIVATE ENTERPRISE IS PEOPLE STANDING ON STREETCORNERS HOLDING PACKS OF CHINESE CIGARETTES AND SELLING THEM ONE CIGARETTE AT A TIME ANOTHER ONE IS B JARGALSAIHAN THE FOUNDER OF THE BOURGEOIS PARTY AND REPUTEDLY THE RICHEST MAN IN MONGOLIA MR JARGALSAIHAN WHO STUDIED MATHEMATICS IN RUSSIA IS A 35YEAROLD 6FOOT3 BEANPOLE OF A MAN WITH A MISSING FRONT TOOTH AND NO PATIENCE FOR QUESTIONS HE DOESN'T LIKE MR JARGALSAIHAN SPENT TWO WEEKS IN JAIL RIGHT BEFORE LAST JUNE'S LEGISLATIVE ELECTIONS IN THOSE ELECTIONS THE FORMER COMMUNIST PARTY THE MONGOLIAN PEOPLE'S REVOLUTIONARY PARTY PROMISED CONTROLLED REFORM AND GARNERED 56 OF THE VOTE AND 71 OF 76 SEATS MR JARGALSAIHAN WAS ACCUSED OF PULLING A PISTOL ON THE MANAGER OF MONGOLIA'S LARGEST STATE CASHMERE EXPORTING COMPANY HE WAS RELEASED WITHOUT CHARGES BUT HIS BOURGEOIS PARTY FAILED TO WIN ANY SEATS DO I LOOK LIKE SOMEBODY WHO WOULD PULL A GUN ON YOU DO I DEMANDS MR JARGALSAIHAN LEANING OVER A DIAGRAM ON HIS DESK DEPICTING HIS LATEST STAGE DESIGN FOR THUNDER AND LIGHTNING A MONGOLIAN HEAVYMETAL ROCK BAND HE SPONSORS LIKE ANYBODY WITH MONEY IN MONGOLIA MR JARGALSAIHAN HAS GOTTEN RICH BY TRADING BETWEEN CHINA AND RUSSIA HE STARTED SELLING TO CHINA SCRAP COPPER THAT THE RUSSIAN MILITARY LEFT BEHIND IN MONGOLIA SINCE THEN HE HAS ENGINEERED SUCH DEALS AS SELLING RUSSIAN ANIMAL FODDER TO CHINA IN EXCHANGE FOR SUGAR AND TRADING RUSSIAN TIMBER FOR CHINESE CLOTHING HE IS CURRENTLY SETTING UP A CASHMERESWEATER FACTORY IN ULAN BATOR HE SEES THIS AS A LUCRATIVE BUSINESS BECAUSE UNLIKE WHAT IT DOES WITH ALMOST ALL OTHER COUNTRIES IN ASIA THE US IMPOSES NO QUOTAS ON GARMENTS FROM MONGOLIA WE CAN'T CONTINUE TO SELL OUR RAW MATERIALS FOREVER SAYS MR JARGALSAIHAN WHO SAYS HIS NEXT GOAL IN LIFE IS TO REPLACE HIS YELLOW MERCEDES WITH A LINCOLN MARK III THE CORE OF MONGOLIA'S POSTCOMMUNIST ECONOMY IS THE MONGOLSOVIET JOINT MINING CORP IN ERDENET 265 MILES NORTHWEST OF ULAN BATOR IT WAS BUILT IN 1978 TO SUPPLY COPPER CONCENTRATE TO TWO SOVIET REFINERIES NOW IT SERVES AS MONGOLIA'S CASH REGISTER THE MINE'S WORK FORCE OF 6000 STILL INCLUDES 1200 RUSSIANS IN THE ADMINISTRATIVE OFFICE EVERYBODY FROM THE FLOOR SWEEPERS TO THE TEA LADIES TO THE EXECUTIVES IS A RUSSIAN WHEN A JOURNALIST ARRIVES UNANNOUNCED RUSSIAN MEN IN BUSINESS SUITS SCRAMBLE TO FIND A MONGOLIAN MANAGER TO SERVE AS THE MINE'S SPOKESMAN COPPER PRODUCTION LAST YEAR DROPPED TO 105000 TONS FROM THE USUAL 125000 TONS BECAUSE THE MINE SUFFERED MANY POWER OUTAGES DUE TO BREAKDOWNS AT POWER PLANT NO 4 THIS HAS SERIOUS REPERCUSSIONS BECAUSE JUST AS MONGOLIA IS ALMOST TOTALLY DEPENDENT ON IMPORTS THE COUNTRY IS ALMOST WHOLLY DEPENDENT ON THE COPPER PRODUCED HERE TO PAY FOR THOSE IMPORTS IN THE OLD DAYS ALL THE COPPER WAS SOLD TO THE EASTERN BLOC NOW SINCE THOSE COUNTRIES DON'T HAVE HARD CURRENCY THE COPPER IS BARTERED WITH RUSSIA AND CHINA FOR GASOLINE FOOD AND SPARE PARTS OR IS SOLD FOR HARD CURRENCY THROUGH SWISS BROKERS CURRENTLY ALMOST ALL THE HARD CURRENCY EARNED BY THE MINE IS IMMEDIATELY SPENT BY THE GOVERNMENT TO PAY OFF PASTDUE LOANS LAST YEAR THE COPPER MINE WAS FORCED TO START MAKING PAYMENTS ON THE STEELMILL LOAN TO JAPAN GAADANGUIN SHARHUU COMMERCIAL DIRECTOR OF THE MINE SAYS DEMAND FOR ITS REVENUE IS SO INTENSE THAT THE MINE ISN'T ALLOWED TO RETAIN ENOUGH FOR MAINTENANCE AND UPGRADING HE SAYS THAT OF THE 70000 PARTS AND MATERIALS THE MINE NEEDS TO OPERATE ONLY FIVE ARE AVAILABLE IN MONGOLIA WE OPERATE THE ONLY FACTORY IN MONGOLIA THAT STILL WORKS SO THE MONGOLIAN ECONOMY IS ON OUR SHOULDERS SAYS MR SHARHUU A FRIENDLY MAN IN A PINSTRIPE SUIT AND SILK TIE BUT IF THE GOVERNMENT CONTINUES TO TAKE ALL OUR MONEY THIS FACTORY WILL END UP JUST LIKE THE REST 9303160042 930316 BUSINESS BRIEF EXCEL TECHNOLOGY INC LOSS TO BE POSTED FOR 1992 QUANTRONIX PURCHASE CITED EXCEL TECHNOLOGY INC SAID IT WILL REPORT A SUBSTANTIAL LOSS FOR 1992 PARTLY REFLECTING A CHARGE FOR ITS 15 MILLION ACQUISITION OF A LASER EQUIPMENT COMPANY EXCEL REPORTED A LOSS OF 12 MILLION OR 47 CENTS A SHARE IN 1991 THE COMPANY A HAUPPAUGE NY MAKER OF LASER PRODUCTS SAID IT COMPLETED RESTRUCTURING AND COSTREDUCTION MOVES RELATED TO ITS 1992 ACQUISITION OF QUANTRONIX CORP THOSE MOVES INCLUDED RELOCATING DOWNSIZING REDUCING BANK DEBT AND SHIFTING PRODUCT EMPHASIS QUANTRONIX WAS ACQUIRED IN A SWAP OF STOCK AND WARRANTS EXCEL SAID IT EXPECTS TO EARN A PROFIT IN THE FIRST QUARTER ENDING MARCH 31 WITH REVENUE EXPECTED TO EXCEED 7 MILLION COMPARED WITH 52000 A YEAR EARLIER 9303160041 930316 WHAT'S NEWS BUSINESS AND FINANCE THE WHITE HOUSE IS CONSIDERING REQUESTING BROAD NEW POWER FOR FEDERAL AND STATE GOVERNMENTS TO REGULATE MEDICAL FEES AND HEALTH INSURANCE PREMIUMS SUCH AUTHORITY ONE OF MANY OPTIONS OUTLINED BY AN ADVISORY GROUP WOULD BE USED TO ENFORCE A NATIONAL BUDGET FOR HEALTH SPENDING THAT CLINTON ADVOCATED AS A CANDIDATE GENERAL MOTORS SAID ITS PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA CHANGED HIS MIND ONCE AGAIN AND RESIGNED FOR THE SECOND TIME IN FIVE DAYS BUT IT ISN'T CLEAR IF LOPEZ IS GOING TO VOLKSWAGEN WHICH HAD WOOED HIM HE COULDN'T BE REACHED FOR COMMENT USAIR WON FEDERAL APPROVAL OF THE FIRST PART OF A PLAN FOR BRITISH AIRWAYS TO INVEST 750 MILLION IN THE US CARRIER THE PARTIAL APPROVAL GIVES WASHINGTON LEVERAGE IN ITS BID TO RENEGOTIATE AN AVIATION ACCORD WITH BRITAIN IBM'S SEARCH FOR A NEW CEO WAS SET BACK AS MOTOROLA CHAIRMAN GEORGE FISHER SAID HE WASN'T INTERESTED IN THE JOB AMID SIGNS THAT IBM'S BOARD WAS SERIOUSLY CONSIDERING HIM BOND PRICES SLUMPED FURTHER AMID INFLATION FEARS FED BY SURGING COMMODITY PRICES STOCKS POSTED GAINS THE DOW JONES INDUSTRIALS CLIMBED 1459 POINTS TO 344241 IN LIGHT TRADING BOND PRICES DROPPED MORE THAN 3/8 POINT IPALCO PLANS TO MAKE AN UNSOLICITED BID OF 2650 A SHARE OR 15 BILLION FOR PSI RESOURCES ANOTHER INDIANA UTILITY THREATENING PSI'S PLAN TO COMBINE WITH CINCINNATI GAS & ELECTRIC DU PONT AND BASF CANCELED CONTRACTS UNDER WHICH THEY WOULD HAVE SUPPLIED ABOUT TWOTHIRDS OF THE HAZARDOUS WASTE TO BE SENT TO A CONTROVERSIAL INCINERATOR BEING TESTED IN OHIO SALES OF USBUILT CARS AND LIGHT TRUCKS EDGED UP IN EARLY MARCH FROM THE LEVEL FOR ALL OF FEBRUARY ANALYSTS BLAMED BAD WEATHER IN MUCH OF THE COUNTRY FOR THE LACKLUSTER RESULTS SEARS'S DEBT WAS DOWNGRADED BY S&P WHICH CITED RESERVATIONS ABOUT WHETHER THE RETAILER'S VAST RESTRUCTURING PLAN WILL ULTIMATELY SUCCEED OLIVETTI ANNOUNCED PLANS TO RAISE 5612 MILLION FROM ITS SHAREHOLDERS AND POSTED A WIDENED LOSS FOR 1992 THE ITALIAN COMPUTER MAKER'S STOCK IS EXPECTED TO PLUNGE TODAY ON THE NEWS LILLY EXPECTS ITS FIRSTQUARTER EARNINGS TO BE WELL BELOW PROJECTIONS BY ANALYSTS WHO FOLLOW THE DRUG MAKER DIGITAL EQUIPMENT IS NEGOTIATING AN AGREEMENT TO LICENSE MITSUBISHI ELECTRIC OF JAPAN TO MANUFACTURE DIGITAL'S NEW ALPHA COMPUTER CHIP TOKYO OFFICIALS SAID THEY WANT THE US AND JAPAN TO STOP USING NUMERICAL GOALS FOR FOREIGN COMPANIES' SHARE OF THE JAPANESE MICROCHIP MARKET BRITISH PETROLEUM AGREED TO PRODUCE OIL AT A SITE IN VENEZUELA MAKING BP THE FIRST MAJOR FOREIGN COMPANY TO RETURN TO THE COUNTRY'S OIL INDUSTRY SINCE IT WAS NATIONALIZED IN 1976 TOKYO STOCK PRICES CLIMBED MONDAY FOR A SEVENTH STRAIGHT SESSION THE MARKET'S MOST CONSECUTIVE ADVANCES IN MORE THAN TWO YEARS THE NIKKEI INDEX ROSE 4866 POINTS TO 1808618 GPA GROUP APPEARS LIKELY TO TURN TO NEW INVESTORS TO PUT UP PART OF THE 200 MILLION THE IRISH AIRCRAFT LEASING GIANT NEEDS IN FRESH CAPITAL FINANCIAL WOES MAY PREVENT SOME CURRENT SHAREHOLDERS FROM INVESTING MORE MONEY BONDS LEHMAN BROTHERS TREASURY INDEX 499328 OFF 1425 COMMODITIES OIL 2016 A BARREL OFF 13 CENTS DOW JONES FUTURES INDEX 13251 UP 103 SPOT INDEX 12546 UP 078 DOLLAR 11860 YEN UP 057 16630 MARKS OFF 00020 9303160040 930316 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR LEASE DON'T HIRE LEASING EMPLOYEES BECOMES MORE POPULAR WHEN CERAMIC DEVICES WORKERS ASKED CHAIRMAN WILLIAM PAYNE FOR A 401K SAVINGS PLAN IN 1991 HE FIRED THEM A LEASING GROUP HIRED THE 35PERSON WORK FORCE AND LEASED IT BACK ENABLING CERAMIC DEVICES TO TRIM ITS ACCOUNTING STAFF WHILE WORKERS GOT THEIR 401K ALTEL SOUND SYSTEMS PLEASANTVILLE NY AND DR GEORGE GRUNER A VIRGINIA NEUROSURGEON SAVE HEALTH COSTS BY LEASING EMPLOYEES WHO GET BETTER BENEFITS TEXAS INSTRUMENTS LEASES UP TO 15 OF ITS WORKERS FIRMS MOSTLY SMALL ONES NOW LEASE MORE THAN A MILLION WORKERS UP FROM 850000 IN 1990 SAYS THE NATIONAL STAFF LEASING ASSOCIATION AMERICORP RELOCATION MANAGEMENT DALLAS AND US ROBOTICS A SKOKIE ILL COMPUTER MODEM MAKER SHUN LEASING TO PRESERVE BONDS WITH EMPLOYEES CORPORATE SECURITY RECEIVES RENEWED ATTENTION IN THE WAKE OF THE WORLD TRADE CENTER BOMBING THAT KILLED SIX PERSONS AND INJURED 1000 COMPANIES ARE ENLARGING SECURITY STAFFS AND MAKING A LONGTERM CHANGE TOWARD BETTER CONTROLS SAYS IRA LIPMAN CHAIRMAN OF GUARDSMARK SECURITY MEMPHIS GUARDSMARK HAS LIFTED ITS REVENUE FORECAST FOR ITS FISCAL YEAR ENDING JUNE 30 BY 1 TO 2 PINKERTON SECURITY & INVESTIGATION SERVICES GOT MORE THAN 1000 CUSTOMER CALLS IN THE LAST TWO WEEKS THE BEST TERRORIST DETERRENT AT CORPORATE OFFICES IS A COMBINATION OF SECURITY GUARDS AND DEVICES LIKE CLOSEDCIRCUIT VIDEO AND SENSORBASED ALARMS SAYS PINKERTON'S EUGENE MASTRANGELO BUILDING MANAGERS ARE ALSO REVIEWING EMERGENCY EVACUATION PLANS THIS WEEK A NEW YORKBASED ENTERTAINMENT COMPANY WILL HOLD ITS FIRST FULL TEST OF SPRINKLERS AND EMERGENCY GENERATORS CRASHING THE CEILING FOR WOMEN IT MAY TAKE A LONG TIME THE WOMEN'S RESEARCH AND EDUCATION INSTITUTE SAYS THAT AT THE CURRENT PACE IT WILL TAKE 75 TO 100 YEARS FOR WOMEN TO ACHIEVE EQUITABLE REPRESENTATION AND PAY AT ALL MANAGEMENT LEVELS DOMENIC BOZZOTTO HEAD OF THE HOTEL WORKERS UNION IN BOSTON SAYS IT WON'T HAPPEN IN HIS CHILDREN'S LIFETIME IT WILL BE IN THE 21ST CENTURY AT THE EARLIEST SAYS JOHN HANLEY A LYDALL INC OFFICIAL PHYLLIS SWERSKY WHO HEADS A BOSTON PERSONNEL CONSULTING FIRM SAYS SHRINKING MIDDLE MANAGEMENT RANKS HAS LIMITED WOMEN'S PROGRESS BUT YVONNE GRAY A FIFTH THIRD BANCORP EXECUTIVE IN CINCINNATI AND FREDERICK VAN VEEN A TERADYNE VICE PRESIDENT PREDICT THAT A QUICKENING PACE OF PROGRESS WILL ENABLE WOMEN TO REACH EQUALITY IN MANAGEMENT IN ABOUT 20 YEARS CLINTON'S POLICIES WILL SPEED THE DAY SAY CHARLES ZABRISKIE A BOSTON HEADHUNTER AND KAREN NUSSBAUM HEAD OF 9 TO 5 A WORKING WOMEN'S ADVOCACY GROUP HIRING PLANS EXPAND SOME 32 OF 308 TOP EXECUTIVES SURVEYED BY ERNST & YOUNG EXPECT MORE HIRING THIS YEAR 22 SEE LESS OF 1000 CHIEF FINANCIAL OFFICERS POLLED BY RECRUITING FIRM ROBERT HALF INTERNATIONAL 9 EXPECT SECOND QUARTER INCREASES IN ACCOUNTING AND FINANCIAL PERSONNEL WHILE 5 SEE A DROP HARDWARE TO SOFTWARE THE MASSACHUSETTS COMPUTER SOFTWARE COUNCIL A TRADE GROUP JOINS WITH PRIVATE FIRMS AND STATE TRAINING AGENCIES IN A PROGRAM TO HELP WORKERS IN SHRINKING DEFENSE COMPUTER AND ELECTRONIC HARDWARE INDUSTRIES FIND SOFTWARE JOBS THE STATE'S SOFTWARE COMPANIES SAY THEY WILL NEED 33000 NEW EMPLOYEES BY 1996 SEXUAL HARASSMENT COMPLAINTS LODGED WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION CLIMBED TO 1608 IN THE 1992 FOURTH QUARTER FROM 1244 IN THE FINAL QUARTER OF 1991 AND 728 IN THE LAST THREE MONTHS OF 1990 TOTAL DISCRIMINATION CHARGES UNDER FEDERAL LAW COULD INCREASE BY 30 TO ABOUT 80000 IN THE FISCAL YEAR ENDING SEPT 30 1993 FROM FISCAL 1992 THE EEOC SAYS PASSING THE BUCK EMPLOYERS WORKERS JOIN HEALTHCARE FINGER POINTING FULLY 70 TO 85 OF 368 CORPORATE PERSONNEL OFFICIALS SURVEYED BY CONSULTANT WILLIAM MERCER BLAME DOCTORS FOR RISING HEALTH COSTS OR SAY THEY BENEFIT FROM IT BUT 500 EMPLOYEECONSUMERS SPLIT MOST OF THE BLAME BETWEEN DOCTORS AND INSURERS THE 166 DOCTORS POLLED BLAME CONSUMERS INSURERS AND THE GOVERNMENT 100 INSURERS MAINLY POINT TO DOCTORS ALL HAVE LITTLE UNDERSTANDING OF EACH OTHER'S CONCERNS SAYS MERCER PRINCIPAL WILLIAM ZABIT ABOUT 41 OF EMPLOYERS THINK THE GOVERNMENT IS BEST ABLE TO SOLVE THE HEALTH COST PROBLEM MOST OF THE REST SAY EMPLOYERS AND DOCTORS ARE BEST ABLE BUT 61 OF EMPLOYEECONSUMERS SAY GOVERNMENT CAN BEST CURE THE PROBLEM THE REST SAY CONSUMERS AND INSURERS CAN BETTER DO IT INSURERS LOOK MOSTLY TO THEMSELVES DOCTORS ARE DIVIDED MOST CONSUMERS EMPLOYERS AND DOCTORS AND A PLURALITY OF INSURERS THINK THE GOVERNMENT IS MOST LIKELY TO SOLVE THE PROBLEM THE CHECKOFF ABOUT 36 OF MALE AND 55 OF FEMALE GRADUATING COLLEGE SENIORS DON'T OWN A BUSINESS SUIT A PLAYBOYROPER POLL OF 200 SENIORS SHOWS LABOR SECRETARY ROBERT REICH TELLS EDUCATORS THAT HE IS HAMPERED BY HIS TRAINING AS WE ALL KNOW AN ECONOMIST IS SOMEONE WHO DOESN'T HAVE THE PERSONALITY TO BE AN ACCOUNTANT A SURVEY OF TRUCKSTOP OPERATORS BY THE NATIONAL ASSOCIATION OF TRUCK STOP OPERATORS SHOWS A HUGE PENTUP DEMAND FOR AUTOMATIC TELLER MACHINES 9303160039 930316 BUSINESS BRIEF PANHANDLE EASTERN CORP PIPELINE SUBSIDIARIES REDUCE DELIVERIES DUE TO WEATHER PANHANDLE EASTERN CORP HOUSTON SAID ITS PIPELINE SUBSIDIARIES HAD TO CUT DELIVERIES OF NATURAL GAS TO NORTHEASTERN STATES BECAUSE OF EXTREME WEATHER CONDITIONS TEXAS EASTERN TRANSMISSION CORP SAID WEATHERRELATED OUTAGES OF SEVERAL COMPRESSOR UNITS CAUSED A 15 REDUCTION IN GAS DELIVERIES TO THE NEW ENGLAND MIDATLANTIC AND NEW YORK CITY AREAS THE EQUIPMENT FAILURES OCCURRED IN ALABAMA AND PENNSYLVANIA SERVICE IS EXPECTED TO BE RESTORED WITHIN A DAY OR TWO BUT IF ADVERSE WEATHER CONTINUES THE CURTAILMENT COULD EXTEND INTO THE WEEKEND SAID PANHANDLE ALGONQUIN GAS TRANSMISSION CO ANOTHER PIPELINE PANHANDLE UNIT THAT SERVES NEW ENGLAND WAS ALSO AFFECTED BY TEXAS EASTERN'S CURTAILMENTS AND WILL IN TURN HAVE TO REDUCE ITS NATURALGAS DELIVERIES 25 A PANHANDLE SPOKESMAN SAID THE COMPANY HASN'T ASSESSED THE FINANCIAL IMPACT OF THE WEATHERRELATED CURTAILMENTS AT THIS TIME 9303160038 930316 BUSINESS BRIEF MCORP BONDHOLDERS' PACT ALLOWS REORGANIZATION PLAN FILING MCORP SAID IT REACHED AN AGREEMENT IN PRINCIPAL WITH CERTAIN SENIOR AND JUNIOR BONDHOLDERS THAT WILL ALLOW THE BANKING CONCERN AND TWO UNITS TO FILE A NEW REORGANIZATION PLAN IN A HOUSTON FEDERAL COURT A SPOKESMAN FOR THE BANKING CONCERN AND THE UNITS MCORP FINANCIAL INC AND MCORP MANAGEMENT SAID THAT BASED ON ASSURANCES FROM A COMMITTEE OF FIVE SENIOR BONDHOLDERS THAT THE NEW PLAN WILL WIN THE APPROVAL OF CREDITORS THE COMPANY HOPES TO COMPLETE ITS LIQUIDATION BY JUNE 14 UNDER TERMS OF THE AGREEMENT SENIOR BONDHOLDERS WILL RECEIVE A SUBSTANTIAL INTERIM DISTRIBUTION IN RETURN THEY AGREED TO LIMIT THEIR CLAIMS TO 309 MILLION WHICH MAY BE REDUCED EVEN FURTHER DEPENDING UPON THE TIMING AND AMOUNT OF THE INTERIM DISTRIBUTION THE SPOKESMAN SAID THE MCORP ESTATE INCLUDES 300 MILLION IN CASH AND AN ESTIMATED 100 MILLION IN NONCASH ASSETS SO THE CAP WILL HOPEFULLY ALLOW RECOVERIES BY JUNIOR CREDITORS MCORP COLLAPSED IN 1989 WHEN THE FDIC SEIZED 20 FAILED UNITS WHICH WERE THEN SOLD TO BANC ONE CORP COLUMBUS OHIO 9303160037 930316 WHAT'S NEWS WORLDWIDE RABIN MET WITH CLINTON AND SAID HE WOULD TRADE LAND FOR PEACE WITH SYRIA THE ISRAELI PRIME MINISTER SAID HE WAS PREPARED TO PULL BACK ON THE GOLAN HEIGHTS AS PART OF AN ACCORD WITH DAMASCUS BUT THAT THE DIMENSIONS OF THE WITHDRAWAL WOULD HAVE TO BE WORKED OUT IN TALKS CLINTON FOLLOWING HIS FIRST MEETING WITH THE ISRAELI LEADER SAID THERE WAS A REAL SHOT AT PROGRESS ON MIDEAST TALKS WHICH COULD RESUME NEXT MONTH THE PRESIDENT ALSO PLEDGED THE US WOULD MAINTAIN ISRAEL'S MILITARY EDGE OVER ITS ARAB NEIGHBORS ISRAELIS PROTESTED AFTER A PALESTINIAN MOTORIST STRUCK AND KILLED TWO WEST BANK SETTLERS BUT POLICE WEREN'T SURE WHETHER THE INCIDENT WAS A POLITICAL ATTACK A UN PANEL BLAMED EL SALVADOR'S MILITARY FOR MOST CIVILWAR ATROCITIES THE PANEL ALSO APPORTIONED SOME BLAME TO LEFTIST REBELS FOR ATROCITIES DURING THE 12YEAR WAR IN WHICH 75000 DIED THE PANEL SAID THE LATE ROBERTO D'AUBUISSON FOUNDER OF THE RULING ARENA PARTY ORDERED THE 1980 MURDER OF ARCHBISHOP ROMERO DEFENSE MINISTER PONCE WHO OFFERED TO RESIGN FRIDAY ORDERED THE 1989 MURDERS OF SIX JESUITS AND LEADERS OF THE USTRAINED ATLACATL BATTALION ORDERED IT TO COMMIT THE 1981 EL MOZOTE MASSACRE OF HUNDREDS OF CIVILIANS THE PANEL SAID MILITARY OFFICERS CITED SHOULD BE DISMISSED AND BARRED FROM POLITICS FOR 10 YEARS PRESIDENT CRISTIANI HOWEVER CALLED FOR A GENERAL AMNESTY BOSNIAN MUSLIM REFUGEES STREAMED INTO SREBRENICA AHEAD OF SERB FORCES WHO SEIZED KONJEVIC POLJE ANOTHER MUSLIM ENCLAVE IN EASTERN BOSNIA A UN SPOKESMAN SAID THE SERBS HAVE AGREED TO ALLOW AN AID CONVOY TO ENTER SREBRENICA WHERE UN RELIEF WORKERS SAID 40 PEOPLE A DAY WERE DYING BECAUSE OF A LACK OF ADEQUATE SHELTER FROM THE COLD THE FRENCH ABORTION PILL MAY BE AVAILABLE TO THOUSANDS OF WOMEN IN THE US IN SEVERAL MONTHS ROUSSELUCLAF THE MAKER OF THE DRUG RU486 SAID IT PLANS TO CHOOSE A RESEARCH ORGANIZATION TO CONDUCT CLINICAL TRIALS OF THE PILL WITHIN TWO MONTHS PAVING THE WAY FOR THE EVENTUAL MARKETING OF THE DRUG IN THE US CLINTON URGED NORTH KOREA TO RECONSIDER ITS DECISION TO WITHDRAW FROM AN INTERNATIONAL NUCLEAR CONTROL TREATY A MOVE THAT HAS HEIGHTENED TENSIONS GREATLY ON THE DIVIDED PENINSULA A SOUTH KOREAN NEWSPAPER SAID SEOUL WILL ASK WASHINGTON NOT TO WITHDRAW 19000 TROOPS SENT TO THE COUNTRY TO PARTICIPATE IN WAR GAMES NOW IN PROGRESS WORLD TRADE CENTER WORKERS FOUND THE BODY OF A HOTEL EMPLOYEE WHILE SEARCHING THROUGH RUBBLE LEFT BY THE FEB 26 BOMBING OF THE 110STORY TWIN TOWERS IN NEW YORK THE DISCOVERY OF THE BODY OF WILFREDO MERCADO BRINGS THE DEATH TOLL TO SIX NEW YORK NEWSPAPERS SAID INVESTIGATORS ARE LOOKING FOR THREE MORE SUSPECTS IN THE ATTACK A FREIGHTER SANK OFF NOVA SCOTIA WITH ONE CREW MEMBER KNOWN DEAD AND 32 MISSING AS A WINTER STORM THAT HAD RAVAGED THE EASTERN US RAGED IN CANADA EARLY YESTERDAY THE DEATH TOLL FROM THE STORM ROSE TO MORE THAN 150 A PRELIMINARY ESTIMATE SAID THE STORM WILL COST INSURANCE FIRMS ABOUT 800 MILLION TWO MORE BOMBS WERE DISCOVERED AND DEFUSED IN BOMBAY BUT POLICE WERE UNSURE WHETHER THEY WERE LEFT OVER FROM THE SERIES OF 13 THAT EXPLODED FRIDAY KILLING ABOUT 300 PEOPLE OR WERE NEWLY PLACED A CALLER CLAIMING TO BE A MEMBER OF A SIKH SEPARATIST GROUP TOLD AN INDIAN NEWS AGENCY THE ORGANIZATION WAS RESPONSIBLE FOR THE BOMBINGS A SOMALI MILITIA LEADER TOLD A UNSPONSORED NATIONAL RECONCILIATION CONFERENCE THAT THE USLED INTERVENTION FORCE HAD OVERSTEPPED ITS BOUNDS AND WAS LOSING POPULAR SUPPORT THE MILITIA LEADER AIDEED DELIVERED THE ASSESSMENT ON THE OPENING DAY OF THE CONFERENCE WHICH AIMS TO RESTORE A GOVERNMENT IN THE EAST AFRICAN NATION PREMIER LI PENG TOLD THE OPENING SESSION OF THE NATIONAL PEOPLE'S CONGRESS CHINA'S LEGISLATURE THAT MARKET REFORMS WOULD PROCEED BUT HE MADE CLEAR THE COMMUNIST PARTY HAS NO PLANS TO EASE AUTHORITARIAN RULE LI ALSO DENOUNCED BRITISH ATTEMPTS TO EXPAND DEMOCRACY IN HONG KONG BEFORE IT REVERTS TO CHINESE RULE IN 1997 GERMANY'S KOHL MADE AN IMPASSIONED PLEA FOR WESTERN NATIONS TO SUPPORT RUSSIA'S YELTSIN WHO WAS STRIPPED OF MUCH OF HIS AUTHORITY BY PARLIAMENT LAST WEEK IN MOSCOW A YELTSIN SPOKESMAN ACCUSED PARLIAMENT OF TRYING TO RESTORE COMMUNIST RULE 9303160036 930316 BUSINESS BRIEF TAKECARE INC CALIFORNIA CONCERN TO BUY OWNER OF COLORADO HMO TAKECARE INC A CONCORD CALIF OPERATOR OF HEALTH MAINTENANCE ORGANIZATIONS SAID IT AGREED TO ACQUIRE THE OWNER OF A COLORADO HMO FOR STOCK AND CASH WORTH MORE THAN 100 MILLION IN A SIGN OF THE GROWING CONSOLIDATION IN HEALTH CARE TAKECARE SAID IT WANTS TO BUY COMPRECARE A CLOSELY HELD CONCERN IN AURORA COLO IN ORDER TO EXPAND ITS GEOGRAPHIC REACH AND CUSTOMER BASE CURRENTLY COMPRECARE HAS 178000 HMO MEMBERS IN COLORADO AND TAKECARE HAS A TOTAL OF 136000 CUSTOMERS IN HEALTH ORGANIZATIONS IN CALIFORNIA ILLINOIS AND OHIO UNDER TERMS OF THE AGREEMENT TAKECARE WILL GIVE 18 MILLION SHARES OF NEWLY ISSUED STOCK ALONG WITH 49 MILLION IN CASH TO COMPRECARE TAKECARE'S STOCK ROSE 375 OR 12 TO 3450 IN OVERTHECOUNTER TRADING 9303160035 930316 TECHNOLOGY BRIEF CHIRON CORP PATENT EXPECTED FOR METHODS USED IN VACCINE RESEARCH CHIRON CORP SAID IT EXPECTS TO RECEIVE A PATENT TODAY COVERING METHODS FOR SCREENING BILLIONS OF POTENTIAL NEW DRUG COMPOUNDS THE PATENT COVERS SOCALLED MIMOTOPE TECHNOLOGY WHICH SCREENS PEPTIDES OR PEPTIDELIKE SUBSTANCES PROTEIN FRAGMENTS WHICH ARE COMPOSED OF AMINO ACIDS THE TECHNIQUE PERMITS RESEARCHERS TO SELECT COMPOUNDS THAT HAVE THE ABILITY TO BIND TO SPECIFIC TARGETS IN THE BODY THE EMERYVILLE CALIF BIOTECHNOLOGY COMPANY SAID THE TECHNOLOGY MAY BE USED IN VACCINE RESEARCH AND IMMUNOLOGY AS WELL AS IN STUDIES OF HORMONES AND VARIETIES OF WHITE BLOOD CELLS CALLED TLYMPHOCYTES SEPARATELY CHIRON WILL ASK A PANEL OF THE FOOD AND DRUG ADMINISTRATION ON FRIDAY TO RECOMMEND APPROVAL OF ITS BETA INTERFERON FOR TREATMENT OF MULTIPLE SCLEROSIS A NEURODEGENERATIVE DISEASE COMPANY SHARES ROSE 3875 TO 55375 YESTERDAY IN OVERTHECOUNTER TRADING 9303160034 930316 BUSINESS BRIEF BENSON EYECARE CORP FIRM PLANS TWO ACQUISITIONS TO EXPAND EYECARE BUSINESS BENSON EYECARE CORP SAID IT PLANS TO EXPAND ITS EYECARE BUSINESS BY PURCHASING TWO CLOSELY HELD COMPANIES FOR A TOTAL 265 MILLION IN CASH AND STOCK BENSON BASED IN NEW YORK SAID IT AGREED TO ACQUIRE BONNEAU COS A DALLAS DISTRIBUTOR OF READYTOWEAR READING GLASSES AND NONPRESCRIPTION SUNGLASSES FOR 215 MILION OF WHICH 17 MILLION WILL BE PAYABLE IN CASH 2 MILLION IN REGISTERED SHARES AND UP TO 25 MILLION IN STOCK BASED ON BONNEAU'S PERFORMANCE IN THE NEXT THREE YEARS BONNEAU HAS CURRENT ANNUAL REVENUE OF ABOUT 50 MILLION BENSON ALSO AGREED TO PAY 5 MILLION FOR FRITCH EYE CARE CENTER A CALIFORNIA GROUP OF OPHTHALMOLOGY PRACTICES IN UNREGISTERED COMMON STOCK WITH REGISTRATION RIGHTS ATTACHED AND AGREED TO AN OPTION TO ACQUIRE FRITCH'S BAKERSFIELD CALIF HEADQUARTERS FOR 900000 IN CASH FRITCH HAS ANNUAL REVENUE OF ABOUT 10 MILLION BENSON SAID IT PLANS TO FUND THE ACQUISITION OF BONNEAU PARTLY THROUGH A PUBLIC OFFERING OF COMMON STOCK IN WHICH IT HOPES TO RAISE 25 MILLION TO 30 MILLION 9303160033 930316 MARKETING BRIEF REED ELSEVIER PLC CAHNERS PUBLISHING CO UNIT ANNOUNCES RESTRUCTURING CAHNERS PUBLISHING CO NEWTON MASS A PUBLISHER OF TRADE JOURNALS AND SPECIALTY MAGAZINES ANNOUNCED A CORPORATE RESTRUCTURING IN THE WAKE OF THE RECENT MERGER OF ITS PARENT COMPANY REED INTERNATIONAL PLC AND ELSEVIER NV CAHNERS NOW A UNIT OF REED ELSEVIER PLC LONDON SAID IT WOULD ADD 35 TITLES TO ITS ROSTER OF MORE THAN 100 SPECIALTY MAGAZINES AS PART OF THE RESTRUCTURING IN ADDITION CAHNERS CREATED A NEW CORPORATE MARKETING GROUP THAT WILL BE HEADED BY FRANK SIBLEY EXECUTIVE VICE PRESIDENT THE NEW GROUP WILL SEEK TO EXPAND CAHNERS MARKETING SERVICES IN BUSINESSTOBUSINESS MARKETING CAHNERS ADDED THAT IT WOULD CREATE A NEW OPERATING GROUP FOR WORLDWIDE MEDICAL PUBLISHING UNDER THE DIRECTION OF ROBERT BRAWN WHO HAD HEADED CAHNERS HEALTHCARE TITLES LAST WEEK CAHNERS ANNOUNCED THAT ITS PRESIDENT TERRENCE M MCDERMOTT IS ON AN INDEFINITE LEAVE OF ABSENCE ROBERT L KRAKOFF CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT CAHNERS IS ACTING PRESIDENT 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 9303160032 930316 BUSINESS BRIEF CHEVRON CORP UNIT SAUDI GROUP INTEND TO BUILD A CHEMICAL PLANT CHEVRON CORP'S CHEVRON CHEMICAL CO SAID IT SIGNED A LETTER OF INTENT WITH A CONSORTIUM OF SAUDI INVESTORS TO BUILD A 400 MILLION CHEMICAL PLANT IN JUBAIL SAUDI ARABIA THE AGREEMENT CALLS FOR DESIGN AND FEASIBILITY STUDIES TO BE COMPLETED BY THE END OF THE YEAR ASSUMING APPROVAL BY THE PARTNERS CONSTRUCTION WOULD BEGIN EARLY NEXT YEAR AND OPERATIONS WOULD BEGIN IN MID1996 THE PLANT WOULD PRODUCE 420000 TONS OF BENZENE AND 270000 TONS OF CYCLOHEXANE ANNUALLY BENZENE IS A HYDROCARBON AND CYCLOHEXANE IS A FEEDSTOCK FOR NYLON THE FACILITY WOULD BE OPERATED BY A PROPOSED NEW COMPANY TO BE OWNED ON AN EQUAL BASIS BY CHEVRON AND THE SAUDI GROUP THE COMPANY WOULD MARKET PRODUCTS INSIDE SAUDI ARABIA AND CHEVRON WOULD MARKET THEM ELSEWHERE CHEVRON CHEMICAL SAID IT HAS A 250 MILLION BENZENE PLANT UNDER CONSTRUCTION IN PASCAGOULA MISS THAT USES CHEVRON'S SAME PATENTED TECHNOLOGY THE SAUDI FACILITY WOULD COST MORE BECAUSE OF ITS CYCLOHEXANE PLANT AND THE NEED TO CONSTRUCT LOADING FACILITIES AND OTHER INFRASTUCTURE 9303160031 930316 BUSINESS BRIEF MICROTEST INC LAWSUIT ALLEGES COMPANY VIOLATED SECURITIES LAWS MICROTEST INC SAID A LAWSUIT HAS BEEN FILED AGAINST IT IN CONNECTION WITH A RECENT DROP IN ITS STOCK PRICE THE PHOENIX COMPANY WHICH MAKES PRODUCTS THAT DIAGNOSE COMPUTERCABLE PROBLEMS SAID THE PURPORTED CLASSACTION LAWSUIT ON BEHALF OF SHAREHOLDERS ALLEGES STATE AND FEDERAL VIOLATIONS OF SECURITIES LAWS AND NEGLIGENT MISREPRESENTATION THE ALLEGATIONS RELATE TO DISCLOSURES ABOUT A DIAGNOSTIC PRODUCT CALLED THE MT310 SCANNER EARLIER THIS MONTH MICROTEST DISCLOSED THAT SALES PROBLEMS WITH THE SCANNER WOULD HURT FIRSTQUARTER EARNINGS THE COMPANY'S STOCK THEN FELL 48 TO 750 A SHARE IN A DAY IN OVERTHECOUNTER TRADING YESTERDAY MICROTEST STOCK CLOSED AT 875 A SHARE UP 625 CENTS JON SHOMER MICROTEST'S PRESIDENT SAID MANAGERS ARE DISAPPOINTED WITH THE FILING OF THE LAWSUIT BUT BELIEVE IT IS WITHOUT MERIT HE ALSO SAID THE PROBLEMS RELATING TO THE SCANNING DEVICE HAVE BEEN BLOWN OUT OF PROPORTION 9303160030 930316 NORTHWEST AIRLINES TRAFFIC ROSE MINNEAPOLIS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SAID ITS FEBRUARY TRAFFIC ROSE 22 TO 415 BILLION REVENUE PASSENGER MILES FROM 406 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 624 FROM 592 FOR THE FIRST TWO MONTHS OF 1993 THE AIRLINE SAID IT FLEW 872 BILLION REVENUE PASSENGER MILES UP 47 FROM THE 833 BILLION REVENUE PASSENGER MILES FLOWN A YEAR EARLIER LOAD FACTOR WAS 617 COMPARED WITH 596 9303160029 930316 S&P LOWERS SEARS DEBT RATINGS CITING RESERVATIONS ABOUT RESTRUCTURING PLAN BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP LOWERED ITS RATINGS ON 17 BILLION OF SEARS ROEBUCK & CO LONGTERM DEBT CITING RESERVATIONS ABOUT WHETHER THE RETAILER'S VAST RESTRUCTURING PLAN WILL ULTIMATELY SUCCEED THE RATING AGENCY WHILE APPLAUDING SEARS'S PLANS TO FOCUS ON ITS MERCHANDISING AND INSURANCE OPERATIONS SAID THE COMPANY'S EXPERIENCE WITH OTHER OVERHAULS IN RECENT YEARS MAKES IT SKEPTICAL IN ASSESSING THE CHANCES FOR SUCCESS IN THE CURRENT PLANS WE'VE HAD A LONG HISTORY WITH SEARS SAID GERALD HIRSCHBERG S&P'S DIRECTOR OF CORPORATE FINANCE THEY HAVE TRIED TO MAKE MANY CHANGES IN THE PAST SOME HAVE BEEN SUCCESSFUL AND SOME HAVE NOT HE NOTED THE COMPANY TOOK A 230 MILLION CHARGE IN CONNECTION WITH A 1990 RESTRUCTURING IN SEARS'S CURRENT RESTRUCTURING PROGRAM THE COMPANY PLANS TO CLOSE ITS UNPROFITABLE CATALOG OPERATION AND 113 STORES ELIMINATING 50000 JOBS AND PRODDING 4000 VETERAN EMPLOYEES TO TAKE EARLY RETIREMENT THOSE CHANGES ARE EXPECTED TO HELP SEARS POST STRONGER PROFITS THIS YEAR AND NEXT S&P SAID BUT AFTER THAT THE COMPANY WILL FACE SIGNIFICANT HURDLES TO IMPROVE PERFORMANCE THOSE OBSTACLES INCLUDE TOUGH COMPETITION AND CUSTOMER ACCEPTANCE OF SEARS'S NEW FORMAT IN A STATEMENT A SEARS SPOKESMAN SAID COMPANY OFFICIALS WERE DISAPPOINTED WITH S&P'S ACTION AND REMAIN CONFIDENT THAT THE PLANS WE HAVE OUTLINED WILL MAKE SEARS A MORE SUCCESSFUL COMPETITOR IN THE FUTURE THE DOWNGRADE LOWERS S&P'S RATINGS OF SEARS SENIOR DEBT AND PREFERRED STOCK AND THE SENIOR DEBT OF THE COMPANY'S OVERSEAS FINANCE AND DISCOVER CREDIT CORP UNITS TO TRIPLEBPLUS FROM SINGLEA S&P LEFT UNCHANGED THE COMMERCIAL PAPER DEBT RATINGS OF THE PARENT COMPANY SEARS ACCEPTANCE CORP AND DISCOVER CREDIT THE MOVE COMPLETES A REVIEW OF THE CHICAGOBASED COMPANY'S DEBT INITIATED BY S&P IN RESPONSE TO THE COMPANY'S CONTINUING TROUBLES IN ITS MERCHANDISE OPERATIONS IN DECEMBER S&P DOWNGRADED SEVERAL OF SEARS' SHORT TERM DEBT ISSUANCES S&P ALSO QUESTIONED THE COMPANY'S STRATEGY OF FOCUSING ON APPAREL AND DEEMPHASIZING ITS SOCALLED HARD LINES THE APPLIANCES CONSUMER ELECTRONICS AND LAWN AND GARDEN EQUIPMENT SEARS SELLS SUCH A STRATEGY AIMED AT GARNERING MORE WOMEN CUSTOMERS COULD HURT SEARS BY ALIENATING MALE CUSTOMERS WHO ARE THE PRIMARY PURCHASERS OF SEARS'S HARDLINE PRODUCTS MR HIRSCHBERG SAID S&P ALSO SAID SEARS MAY NOT BE ABLE TO RETIRE AS MUCH DEBT AS IT HAD PLANNED WITH THE PROCEEDS FROM A PUBLIC OFFERING OF ITS DEAN WITTER UNIT AND ITS PLANNED 20 SALE OF ALLSTATE BECAUSE IT MAY USE SOME OF THOSE FUNDS TO SHORE UP ALLSTATE'S BALANCE SHEET THE INSURANCE UNIT WAS HIT WITH BIG LOSSES FROM CLAIMS RELATED TO HURRICANE ANDREW IN THE FALL IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SEARS SHARES FELL 375 CENTS TO 51875 9303160028 930316 REVIEW & OUTLOOK EDITORIAL ASIDES BRITS CATCH THE DRIFT GETTING A FOCUS ON THE ADMINISTRATION'S POLICIES CAN BE TRICKY YESTERDAY WE BEGAN TO DETECT THE SHAPE OF ITS TRADE POLICY AND INDUSTRIAL POLICY AT A TIME WHEN THE MAJOR US AIR CARRIERS ARE WATCHING THEIR BONDS SINK TO JUNK STATUS THE CLINTON ADMINISTRATION WAVED THROUGH BRITISH AIR'S BUYIN OF USAIR THEN WE READ THAT LLOYD BENTSEN WILL PRAISE FRIENDS OF THE CLINTON ENERGY TAX AND RIP ITS OPPONENTS THE FIRST NAME ON THE A LIST BRITISH PETROLEUM WE KNOW THAT RHODES SCHOLARS OFTEN TURN INTO ANGLOPHILES BUT IT WOULDN'T HAVE OCCURRED TO US THAT THE BRITS WOULD BE THE FIRST BENEFICIARIES OF US INDUSTRIAL AND TRADE POLICY MAYBE THEY'RE THE FIRST TO RECOGNIZE THE GENERAL DRIFT OF THE US 9303160027 930316 TECHNOLOGY & SCIENCE MICROSOFT MAKES ADVANCES IN UPDATING KEY SYSTEMS THE SOFTWARE MAKER LAST WEEK COMPLETED ITS FINAL BETA OR TEST VERSION OF NT COPIES OF WHICH WILL BEGIN GOING TO SOFTWARE DEVELOPERS SHORTLY SAID PAUL MARITZ SENIOR VICE PRESIDENT SYSTEMS DIVISION NT IS AN ADVANCED VERSION OF WINDOWS THAT MICROSOFT IS EXPECTED TO RELEASE IN MAY MR MARITZ SAID THE COMPANY WAS PLEASED WITH THE NEW BETA VERSION AND THAT IT IS MEETING EXPECTATIONS FOR THE PRODUCT MR MARITZ SAID REPORTS IN TRADE PUBLICATIONS THAT INDICATED MICROSOFT WAS PULLING BACK ON SOME NT FEATURES IT HAD PROMISED CUSTOMERS WERE NOT TRUE MICROSOFT ALSO HAS FINISHED WORK ON ITS NEXT RELEASE OF MSDOS AND THE CODE IS GOING TO MANUFACTURING IN THE NEXT COUPLE OF DAYS SAID BRAD SILVERBERG VICE PRESIDENT OF MICROSOFT'S PERSONAL SYSTEMS GROUP MSDOS 60 AS THIS VERSION IS DESIGNATED IS EXPECTED TO BE AVAILABLE TO CUSTOMERS BY MARCH 30 MR SILVERBERG DECLINED TO COMMENT ON THE DATE BUT SAID THIS VERSION OF MSDOS INCLUDES FEATURES THAT IMPROVE MEMORY AND POWER MANAGEMENT AS WELL AS EFFECTIVELY EXPAND THE SIZE OF PC STORAGE DISKS THROUGH A COMPRESSION TECHNIQUE 9303160026 930316 LAW LEGAL BEAT GEORGIA HIGH COURT RULING OPENS UNIVERSITY DISCIPLINARY HEARINGS BY JUNDA WOO AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL IN A VICTORY FOR STUDENT GROUPS SEEKING INFORMATION ON HAZINGS AND CAMPUS RAPES THE GEORGIA SUPREME COURT RULED THAT UNIVERSITY DISCIPLINARY HEARINGS MUST BE OPEN TO THE PUBLIC THE RULING CAME IN A CASE BROUGHT AGAINST THE UNIVERSITY OF GEORGIA IN ATHENS BY THE RED & BLACK THE SCHOOL'S STUDENT NEWSPAPER AFTER AN ALLEGED HAZING INCIDENT A UNIVERSITY DISCIPLINARY BOARD DENIED THE NEWSPAPER ACCESS TO HEARINGS AND RECORDS ABOUT THE INCIDENT THE GEORGIA SUPREME COURT REVERSED A LOWER COURT THAT HAD SAID THE DISCIPLINARY BOARD WASN'T A GOVERNING BODY COVERED BY THE STATE'S OPEN MEETINGS ACT BECAUSE THE DISCIPLINARY BOARD ACTS ON BEHALF OF THE STATE BOARD OF REGENTS THE COURT SAID IT IS EQUIVALENT TO A GOVERNING BODY THE SCHOOL ALSO HAD ARGUED THAT IT WAS PROTECTED BY A 1974 FEDERAL LAW CALLED THE BUCKLEY AMENDMENT UNDER THAT LAW FEDERAL FUNDING CAN BE WITHHELD FROM UNIVERSITIES THAT DISCLOSE ANY STUDENT RECORDS BESIDES BASIC DIRECTORY INFORMATION UNIVERSITIES OFTEN CITE THE AMENDMENT IN WITHHOLDING INFORMATION FOUND IN INTERNAL INVESTIGATIONS BUT THE STATE SUPREME COURT SAID THE HAZING DOCUMENTS ARE DISCIPLINARY RECORDS NOT THE EDUCATIONAL DOCUMENTS PROTECTED BY THE AMENDMENT THE STATE HIGH COURT SAID UNIVERSITIES CAN'T LOSE THEIR FUNDING WHEN A COURT FORCES THEM TO OPEN DISCIPLINARY RECORDS THE RULING IS BELIEVED TO BE THE FIRST IN THE NATION TO SAY SUCH DISCIPLINARY HEARINGS MUST BE HELD IN PUBLIC MARK GOODMAN EXECUTIVE DIRECTOR OF THE STUDENT PRESS LAW CENTER IN WASHINGTON DC SAID THE DECISION IF FOLLOWED BY OTHER STATE COURTS COULD HAVE AN IMPACT ON PUBLIC UNIVERSITIES AROUND THE COUNTRY WHICH GENERALLY HOLD ALL JUDICIAL PROCEEDINGS IN PRIVATE IN ALMOST ALL CASES EVEN THE RESULTS OF THE INVESTIGATIONS ARE PRIVATE MR GOODMAN SAID YOU GET ABUSES OF THE SYSTEM AS A RESULT OF THAT FOR INSTANCE MR GOODMAN SAID ASSAULTS OR OTHER CRIMES BY ATHLETES TEND TO BE RUSHED INTO PRIVATE JUDICIAL PROCEEDINGS TO FORESTALL A POLICE REPORT FROM BEING FILED THE RESULT IS MOST TROUBLING NOT WHEN DISCIPLINARY BOARDS ARE ISSUING PUNISHMENT UNFORTUNATELY BUT WHEN THEY'RE REFUSING TO ISSUE PUNISHMENT HE SAID UNIVERSITY REPRESENTATIVES STRESSED THAT THE RULING APPLIES ONLY TO COLLEGES IN GEORGIA AND THAT OTHER STATES' COURTS MIGHT NOT FOLLOW SUIT MELINDA GRIER COCHAIRWOMAN OF THE STUDENT AFFAIRS SECTION OF THE NATIONAL ASSOCIATION OF COLLEGE AND UNIVERSITY ATTORNEYS SAID OPENMEETINGS LAWS VARY FROM STATE TO STATE SOME STATES HAVE PRIVACY LAWS AS WELL WHICH MIGHT ALLOW THE HEARINGS TO BE KEPT CLOSED SHE SAID THE GEORGIA RULING APPLIED TO A DISCIPLINARY BOARD THAT INVESTIGATES ONLY CAMPUS GROUPS SUCH AS FRATERNITIES AND SORORITIES BUT ANTHONY E DIRESTA AN ATLANTA ATTORNEY FOR THE NEWSPAPER SAID THE DECISION SHOULD APPLY EQUALLY TO A SEPARATE BOARD THAT INVESTIGATES INDIVIDUAL STUDENTS ANY STUDENT COURT THAT ADJUDICATES CRIME OR MATTERS OF PUBLIC CONCERN IS AFFECTED BY THIS DECISION HE SAID MIKE MCLEOD EDITORINCHIEF OF THE RED & BLACK SAID THAT COVERING HEARINGS OF INDIVIDUALS WOULD RAISE SOME ETHICAL ISSUES BUT WHY ARE WE GOING TO TREAT COLLEGE STUDENTS WITH SUCH KID GLOVES ONE HAZING INCIDENT HE NOTED INVOLVED AN ALLEGED BATTERY AGAINST A STUDENT THAT WAS INVESTIGATED BY THE LOCAL POLICE I THINK STUDENTS DESERVE TO BE TREATED LIKE REAL ADULTS HE SAID ALFRED L EVANS JR AN ATTORNEY WHO REPRESENTED THE UNIVERSITY SAID HE HADN'T READ THE RULING AND COULDN'T COMMENT AS IF KEENE CORP DIDN'T HAVE ENOUGH TO WORRY ABOUT FROM NEARLY 200000 PERSONALINJURY PLAINTIFFS IT'S NOW UNDER FIRE FROM SHAREHOLDERS AS WELL THE FORMER ASBESTOS MAKER WAS ORDERED BY A FEDERAL JUDGE TO PROVIDE SHAREHOLDERS' LAWYERS WITH INFORMATION ON HOW MUCH THE COMPANY PAID IN THE LATE 1980S TO SETTLE ASBESTOSRELATED LAWSUITS THE SETTLEMENT INFORMATION WHICH KEENE FOUGHT TO KEEP PRIVATE HAS EMERGED AS A KEY ISSUE IN A CLASSACTION LAWSUIT ALLEGING THAT KEENE AND ITS ONETIME PARENT BAIRNCO CORP MISLED SHAREHOLDERS ABOUT THE EXTENT OF THE COMPANY'S POTENTIAL LIABILITY JUDGE WILLIAM CONNER MANHATTAN GAVE KEENE 10 DAYS TO MAKE AVAILABLE LETTERS AND OTHER DOCUMENTS PREPARED BY ITS ATTORNEYS IN ADVISING KEENE ON HOW TO DEAL WITH PERSONALINJURY LAWSUITS STEMMING FROM EXPOSURE TO ASBESTOS STUART RICKERSON KEENE'S GENERAL COUNSEL SAID THE COMPANY WILL SEEK TO CHALLENGE JUDGE CONNER'S DECISION IN THE FEDERAL APPEALS COURT LIABILITY RELATED TO ASBESTOS AN INSULATION MATERIAL THAT'S BEEN LINKED TO CANCER AND LUNG DISEASE HAS PUSHED SEVERAL FORMER MANUFACTURERS MOST NOTABLY THE FORMER JOHNS MANVILLE CORP INTO BANKRUPTCY AND SEVERAL COMPANIES NOT UNDER BANKRUPTCYCOURT PROTECTION HAVE BEEN SUED BY SHAREHOLDERS WHO SAY THEY LOST MONEY BECAUSE THE COMPANIES DIDN'T PROPERLY DISCLOSE POTENTIAL LIABILITY JUDGE CONNER SAID THE LAWYERS' LETTERS MIGHT SHOW WHETHER BAIRNCO AND KEENE KNOWINGLY MISLED INVESTORS WHEN BAIRNCO REPORTED IN REGULATORY FILINGS UNTIL 1990 THAT THE ASBESTOS LAWSUITS WOULD NOT MATERIALLY INFLUENCE THE COMPANY'S FINANCIAL CONDITION IN MARCH 1990 IN THE FEW DAYS AFTER BAIRNCO SAID IT COULD NO LONGER MAKE THAT DETERMINATION THE COMPANY'S STOCK PRICE FELL BY MORE THAN HALF FROM 1365 TO 625 SHARE THE SHAREHOLDERS WHO SUED HAD BOUGHT BAIRNCO STOCK AT A HIGHER PRICE BEFORE THE 1990 ANNOUNCEMENT LATER THAT YEAR KEENE WAS SPUN OFF AS A SEPARATELY TRADED CONCERN FROM NEW YORKBASED BAIRNCO WHICH CONTINUES TO OPERATE AS A MANUFACTURER OF INDUSTRIAL PRODUCTS INFORMATION GIVEN TO KEENE BY ITS COUNSEL CONCERNING KEENE'S ASBESTOS LIABILITY SHOULD BE HIGHLY REVEALING AS TO THE VERACITY AND SUFFICIENCY OF KEENE'S PUBLIC DISCLOSURES AND PERHAPS MORE IMPORTANTLY PARTICULARLY PROBATIVE OF KEENE'S GOOD OR BAD FAITH IN MAKING SUCH DISCLOSURES WROTE JUDGE CONNOR IN RULING THAT THE NORMALLY PRIVATE RELATIONSHIP BETWEEN LAWYER AND CLIENT SHOULD BE BREACHED TO DATE KEENE A NEW YORKBASED MAKER OF COMPOSITE MATERIALS HAS SPENT 430 MILLION ON COSTS AND SETTLEMENTS TO HANDLE 90000 LAWSUITS ACCORDING TO MR RICKERSON IT FACES AT LEAST ANOTHER 96000 SUITS ABOUT 15000 LAWYERS IN ATHENS GREECE RETURNED TO WORK LAST WEEK AFTER A 10MONTH STRIKE AND OFFICIALS SAY IT COULD TAKE THREE YEARS OR MORE TO SORT THROUGH A MONSTROUS BACKLOG OF 400000 CASES THE STRIKE BY THE ATHENS BAR ASSOCIATION WAS AIMED AT NEW LEGISLATION THAT BOOSTS THE LAWYERS' TAXES AND PENSION CONTRIBUTIONS THE LAW WAS SCHEDULED TO GO INTO EFFECT IN THE MIDDLE OF THIS YEAR BUT THE GOVERNMENT AGREED TO DELAY ITS IMPLEMENTATION FOR A YEAR IF THE LAWYERS RETURNED TO WORK LAWYERS COMPLAIN THAT THE INCREASED FEES WOULD FORCE MANY OF THEM OUT OF BUSINESS BUT SOME PEOPLE SAY THIS MAY HAVE BEEN THE GOVERNMENT'S GOAL ALL ALONG WITH A POPULATION OF 10 MILLION GREECE HAS 25000 LAWYERS OR ONE FOR EVERY 400 PEOPLE IN THE REST OF EUROPE THE RATIO IS ABOUT ONE IN 2000 HOWEVER EVEN GREECE LAGS BEHIND THE US WHERE IN THE LAST OFFICIAL COUNT IN 1988 THERE WAS ONE LAWYER FOR EVERY 339 PEOPLE TOP DEFENDER CLAUDE H SMART JR WAS ELECTED PRESIDENT OF THE CHICAGOBASED DEFENSE RESEARCH INSTITUTE A NATIONAL ORGANIZATION OF 18000 LAWYERS WHO DEFEND MOSTLY BUSINESSES AND INSURERS IN CIVIL LITIGATION MR SMART A PARTNER WITH KROLOFF BELCHER SMART PERRY & CHRISTOPHERSON IN STOCKTON CALIF SAID HIS PRIORITIES INCLUDE PUSHING FOR BETTER STAFFING EQUIPMENT AND SECURITY IN THE NATION'S COURTS AND GAINING A WIDER ROLE FOR WOMEN IN THE CORPORATE DEFENSE BAR HE SAID THAT CURRENTLY ABOUT 3000 DRI MEMBERS ARE WOMEN WHO'S NEWS WILLIAM DALEY PRESIDENT OF AMALGAMATED BANK OF CHICAGO WILL REJOIN CHICAGO LAW FIRM MAYER BROWN & PLATT AS A SENIOR PARTNER MAY 1 MR DALEY THE BROTHER OF CHICAGO MAYOR RICHARD DALEY WAS CHAIRMAN OF THE CLINTON CAMPAIGN IN ILLINOIS AT THE LAW FIRM HE WILL FOCUS ON CORPORATE LAW AND GOVERNMENT RELATIONS JOSEPH E RESENDE HAS JOINED CHICAGOBASED RUDNICK & WOLFE AS PARTNER IN CHARGE OF THE LAW FIRM'S WASHINGTON OFFICE MR RESENDE A CORPORATE LAW AND TAX SPECIALIST WAS FORMERLY PARTNER AT THE WASHINGTON FIRM DUNNELLS DUVALL & PORTER 9303160025 930316 INTERNATIONAL FRENCH CONSUMER PRICES PARIS FRANCE'S CONSUMER PRICE INDEX ROSE 04 IN FEBRUARY LEAVING THE YEARONYEAR RATE UNCHANGED FROM JANUARY AT 21 ACCORDING TO PROVISIONAL DATA RELEASED BY THE NATIONAL INSTITUTE OF STATISTICS AND ECONOMIC STUDIES 9303160024 930316 ECONOMY HOME BUILDERS SEEK TO DEVELOP LAND WITH LOANS FROM INSTITUTIONAL INVESTORS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL CREDITSTARVED HOME BUILDERS HAVE BEGUN TURNING TO INSTITUTIONAL INVESTORS TO FINANCE LAND DEVELOPMENT A RISKY REAL ESTATE SECTOR ABANDONED BY BANKS AND THRIFTS TO GET TRACT HOUSING DEVELOPMENTS OFF THE DRAWING BOARDS DEVELOPERS ARE TAPPING LARGE POOLS OF CAPITAL PUT TOGETHER BY PRUDENTIAL INSURANCE CO OF AMERICA HELLER FINANCIAL INC GENERAL ELECTRIC PENSION TRUST A UNIT OF GENERAL ELECTRIC CO AND GOLDMAN SACHS & CO AMONG OTHERS INSTEAD OF PROVIDING LOANS THESE INSTITUTIONS ARE TAKING AN EQUITY STAKE IN PROJECTS OFTEN AS EQUAL PARTNERS WITH THE DEVELOPERS THE INSTITUTIONS PROVIDE THE CAPITAL AND THE DEVELOPERS BUY THE LAND CLEAR IT PUT IN ROADS SEWER AND WATER LINES AND EITHER BUILD HOMES OR SELL THE LOTS TO OTHER BUILDERS WE SAW A YEAR AGO THAT THERE WAS A WINDOW OF OPPORTUNITY BECAUSE BANKS WERE NOT LENDING SAID EUGENE HEIMBERG CHAIRMAN OF THE PRUDENTIAL REALTY GROUP WHICH IS AIMING TO RAISE SEVERAL HUNDRED MILLION DOLLARS FROM PENSION FUNDS TO INVEST IN AFFORDABLE HOUSING DEVELOPMENTS LIKE MANY OTHER INSTITUTIONAL INVESTORS PRUDENTIAL HAD PREVIOUSLY CONFINED ITS REAL ESTATE INVESTMENT TO THE COMMERCIAL SECTOR PRUDENTIAL SAYS IT EXPECTS ANNUAL RETURNS OF 20 TO 30 THE SAME RANGE EXPECTED BY OTHER INVESTORS LAND IS THE HIGHRISK HIGHRETURN PART OF THE BUSINESS SAID DANIEL NEIDICH WHO HEADS REAL ESTATE INVESTMENT AT GOLDMAN SACHS WHICH HAS INVESTED IN LAND DEVELOPMENT THROUGH THE REAL ESTATE FUNDS IT RUNS THE NEW FINANCING COULDN'T HAVE APPEARED AT A BETTER TIME FOR MANY HOME BUILDERS WHO ARE HAVING TROUBLE CAPITALIZING ON THE HOUSING REBOUND BECAUSE OF A CREDIT CRUNCH ALREADY SHORTAGES OF FINISHED LOTS ARE CROPPING UP IN SEVERAL PARTS OF THE COUNTRY ALTHOUGH BUILDERS STILL CAN OBTAIN CONSTRUCTION LOANS TO BUILD PRESOLD HOMES STRICTER BANK AND THRIFT REGULATIONS HAVE CHOKED OFF MONEY FOR LAND DEVELOPMENT BUILDERS ARE ENCOURAGED BY PRESIDENT CLINTON'S RECENT PROPOSALS TO EASE THE CRUNCH BUT FEW EXPECT CREDIT TO LOOSEN FOR MONTHS LAND ACQUISITION AND DEVELOPMENT LOANS ARE CONSIDERED RISKIER THAN CONSTRUCTION LOANS BECAUSE LAND IS HARDER TO SELL THAN FINISHED HOMES IF THE RESIDENTIAL MARKET WERE TO DETERIORATE BEFORE HOMES WERE BUILT THE LOANS COULD QUICKLY SOUR BEFORE THE THRIFT CRISIS SOME BUILDERS WERE ABLE TO GET LOANS FOR 100 OF THE VALUE FOR LAND ACQUISITION AND DEVELOPMENT NEW FEDERAL GUIDELINES RECOMMEND RESTRICTING SUCH LOANS TO 75 OF VALUE AND MANY LENDERS WON'T LEND MORE THAN 50 MOST BUILDERS DON'T HAVE SUFFICIENT CAPITAL AND ARE SEARCHING FOR GAP FINANCING TO COVER THE SHORTFALL THERE ARE VERY FEW DEVELOPERS WHO CAN GET DEBT FINANCING SAID TIMOTHY HOGAN OF COSTA MESA CALIF'S WARMINGTON HOMES THE TRADITIONAL SOURCES OF EQUITY S&LS AND FOREIGN INVESTORS HAVE DRIED UP NOW WE'VE GOT A NEW SUPPLY OF CAPITAL WE NEED THESE PEOPLE HELLER FINANCIAL A CHICAGOBASED FINANCIAL SERVICES COMPANY IS PROVIDING GAP FINANCING FOR THREE WARMINGTON PROJECTS AND THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM CALPERS IS FINANCING THREE OTHERS LAST YEAR PRUDENTIAL INSURANCE FORMED PRUDENTIAL HOME BUILDING INVESTORS AND SET OUT TO RAISE MONEY FROM PENSION FUNDS CALPERS WAS ITS FIRST INVESTOR KICKING IN 75 MILLION AND IN SEPTEMBER HILLWOOD DEVELOPMENT CORP A DALLAS COMPANY HEADED BY ROSS PEROT JR JOINED FORCES WITH THE GENERAL ELECTRIC PENSION TRUST TO FORM EAGLE DEVELOPMENT CO IT RECENTLY COMPLETED ITS FIRST LAND DEVELOPMENT DEAL AND IS WORKING ON OTHER DEALS IN TEXAS ATLANTA AND KANSAS CITY IT'S REALLY JUST A FINANCING PLAY AND THEY INSTITUTIONAL INVESTORS WILL BE MAKING A NICE PROFIT SAID WASHINGTON HOME BUILDER MARTIN ALLOY WHO RECENTLY WAS APPROACHED BY HELLER FINANCIAL I HAVE TO GET OVER THE PSYCHOLOGICAL HUMP OF HAVING TO PAY THE PIPER TO GET THE MONEY 9303160023 930316 BUSINESS BRIEFS F&M NATIONAL CORP PLANS TO ACQUIRE HARVEST BANCORP INC TERMS WEREN'T DISCLOSED SUPERMAC TECHNOLOGY INC FORMED AN ALLIANCE WITH BUG OF JAPAN FOR JOINT DEVELOPMENT OF COMPUTER GRAPHICS PRODUCTS SHELL OIL CO A UNIT OF THE ROYAL/DUTCH SHELL GROUP AGREED TO BUY 26 SERVICE STATIONS FROM A UNIT OF BRITISH PETROLEUM PLC TERMS WEREN'T DISCLOSED CLOROX CO SAID ITS INTERNATIONAL UNIT OPENED A MANUFACTURING PLANT IN ANSAN SOUTH KOREA TO MAKE ITS COMBAT AND MAXFORCE INSECTICIDE PRODUCTS PREFERRED HEALTH CARE LTD SAID A UNIT RECEIVED A THREEYEAR CONTRACT VALUED AT AN ESTIMATED 8 MILLION A YEAR TO ADMINISTER INSURANCE PROGRAMS OFFERED TO AMERICAN EXPRESS CO CARD HOLDERS ALBANY SAVINGS BANK A UNIT OF ALBANK FINANCIAL CORP COMPLETED THE ACQUISITION OF EIGHT BRANCHES OF DIME SAVINGS BANK OF NEW YORK IN THE ALBANY AND UTICA NY AREAS 9303160022 930316 TECHNOLOGY & SCIENCE DIGITAL MITSUBISHI NEGOTIATE ACCORD TO MAKE US COMPANY'S ALPHA CHIP BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL MAYNARD MASS DIGITAL EQUIPMENT CORP SAID IT IS NEGOTIATING AN AGREEMENT WITH MITSUBISHI ELECTRIC CORP UNDER WHICH THE JAPANESE COMPANY WOULD MANUFACTURE DIGITAL'S NEW ALPHA COMPUTER CHIP FOR SALE TO OTHER COMPUTER COMPANIES THE AGREEMENT WOULD BE A BOOST FOR DIGITAL WHICH SAID PREVIOUSLY IT WANTS TO LICENSE OTHERS TO MAKE THE HIGHSPEED ALPHA MICROPROCESSOR IN ORDER TO INCREASE MARKET ACCEPTANCE OF THE NEW CHIP TO THE EXTENT THAT THE CHIP BECOMES AN INDUSTRYWIDE STANDARD SOFTWARE DEVELOPERS WILL WRITE MORE PROGRAMS FOR IT AND DIGITAL WILL BENEFIT THROUGH INCREASED SALES OF ITS OWN COMPUTERS USING ALPHA THE MITSUBISHI AGREEMENT WOULD BE IMPORTANT BECAUSE OTHER COMPUTER MAKERS CONSIDERING BUILDING MACHINES AROUND A NEW CHIP OFTEN WAIT UNTIL THERE IS A SECOND SUPPLIER TO ENSURE AVAILABILITY OF THE CHIP WHEN SUPPLIES GET TIGHT AS WELL BUYERS LIKE TO WAIT FOR A SECOND SOURCE BECAUSE MANUFACTURING COMPETITION TENDS TO BRING DOWN A MICROPROCESSOR'S PRICE UNDER THE AGREEMENT BEING NEGOTIATED MITSUBISHI ALSO WOULD HAVE THE RIGHT TO PRODUCE AND SELL CHIPS THAT ARE VARIATIONS OF DIGITAL'S BASIC ALPHA DESIGN THE NEGOTATIONS COULD BE COMPLETED IN SOMEWHERE BETWEEN A WEEK AND A MONTH SAID A DIGITAL SPOKESMAN ALPHA BASED ON A CHIP TECHNOLOGY CALLED RISC FOR REDUCED INSTRUCTION SET COMPUTING THAT GREATLY INCREASES A COMPUTER'S PROCESSING SPEED IS EXPECTED TO POWER DIGITAL'S COMPUTERS INTO THE NEXT CENTURY THE MAIN ISSUE IS THAT FOR ALPHA TO BE SUCCESSFUL DIGITAL HAD TO CONVINCE THE WORLD THAT THEY WEREN'T THE ONLY ONE PUSHING IT SAYS GEORGE ELLING AN ANALYST WITH MERRILL LYNCH & CO THEY'VE BEEN AGGRESSIVELY LOOKING FOR A PARTNER NOW THEY'VE FOUND ONE DIGITAL BEGAN SELLING WORKSTATIONS BUILT AROUND ALPHA IN NOVEMBER AND THE ALPHA CHIP IS NOW AVAILABLE IN MOST OF DIGITAL'S COMPUTER LINES HOWEVER THOSE MACHINES ARE EXPECTED TO ACCOUNT FOR ONLY ABOUT 10 OF DIGITAL'S 1993 SALES IN FISCAL 1992 DIGITAL HAD 139 BILLION IN SALES WHILE THIS HELPS ALPHA ALONG A BIT THE REAL TEST OF THE CHIP'S CREDIBILITY WILL COME AS DIGITAL KEEPS ROLLING IT OUT IN LARGER AND SMALLER SYSTEMS SO THAT VOLUMES AND USAGE BUILD SAYS LAURA CONIGLIARO AN ANALYST WITH PRUDENTIAL SECURITIES INC BUT OTHER ANALYSTS SEE IT AS AN IMPORTANT VOTE OF CONFIDENCE IN DIGITAL'S ALPHA TECHNOLOGY MITSUBISHI WOULDN'T HAVE STRUCK THIS AGREEMENT IF IT DIDN'T SEE POTENTIAL FOR THE CHIP TO GO FAR BEYOND DIGITAL'S PRODUCT LINES SAID SHAO WANG SMITH BARNEY HARRIS UPHAM & CO CLEARLY MITSUBISHI SEES REAL OPPORTUNITY HERE ALTHOUGH MITSUBISHI WOULD BE THE FIRST COMPANY LICENSED TO MAKE THE ALPHA CHIP TWO COMPANIES CRAY RESEARCH INC AND KUBOTA LTD OF JAPAN HAVE AGREED TO USE THE MICROPROCESSOR IN COMPUTERS THEY MAKE 9303160021 930316 GEORGIAPACIFIC SIGNS LETTER OF INTENT TO SELL BUTLER PAPER TO ALCO STANDARD BY DANIEL PEARL AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL ATLANTA GEORGIAPACIFIC CORP RETREATING FROM THE PAPERDISTRIBUTION BUSINESS SAID IT SIGNED A LETTER OF INTENT TO SELL BUTLER PAPER CO TO ALCO STANDARD CORP THE TWO COMPANIES WOULDN'T DISCLOSE THE PURCHASE PRICE BUT GEORGIAPACIFIC SAID IT EXPECTED CASH PROCEEDS OF 180 MILLION INCLUDING A TAX LOSS FROM SELLING BUTLER AT LESS THAN ITS CARRYING VALUE GEORGIAPACIFIC AN ATLANTABASED FORESTPRODUCTS CONCERN SAID IT EXPECTED TO RECORD A CHARGE OF 50 MILLION OR 58 CENTS A SHARE IN THE FIRST QUARTER FOR THE SALE GEORGIAPACIFIC HAD ACQUIRED BUTLER WHICH HAS 80 LOCATIONS IN THE US AND 1 BILLION IN ANNUAL REVENUE AS PART OF ITS 38 BILLION ACQUISITION OF GREAT NORTHERN NEKOOSA IN 1990 GEORGIAPACIFIC HAD HOPED TO GAIN STRATEGIC ADVANTAGES BY DISTRIBUTING PAPER THROUGH ITS OWN COMPANY BUT BUTLER DIDN'T GIVE GEORGIAPACIFIC THE DOMINANT POSITION IN PAPER DISTRIBUTION THAT IT HAS IN LUMBER DISTRIBUTION GEORGIAPACIFIC SAID IT SOLD ONLY 15 OF ITS PAPER THROUGH BUTLER THE COMPANY SAID YESTERDAY IT DETERMINED IT WOULD HAVE TO DRAMATICALLY GROW THE PAPERDISTRIBUTION BUSINESS IN ORDER TO GET STRATEGIC BENEFITS INSTEAD GEORGIAPACIFIC SAID IT WOULD ENTER A LONGTERM CONTRACT TO SELL PRODUCTS THROUGH BUTLER ANALYSTS SAID THE DECISION TO SELL BUTLER ALSO REFLECTS GEORGIAPACIFIC'S DESIRE TO REDUCE DEBT AND ITS SHIFT TOWARD COMMODITY GRADES OF PAPER LIKE COPYING PAPER WHERE OWNING A DISTRIBUTION SYSTEM IS LESS OF AN ADVANTAGE THAN HAVING LOWCOST MANUFACTURING BY ACQUIRING BUTLER ALCO WOULD EXTEND ITS ALREADY IMPRESSIVE REACH AS THE LARGEST PAPER DISTRIBUTOR IN THE US ALCO BASED IN VALLEY FORGE PA ALSO DISTRIBUTES OFFICE PRODUCTS MY SENSE IS THAT THEY GOT A VERY GOOD DEAL SAID JUDITH SCOTT ANALYST AT ROBERT W BAIRD & CO THIS ACQUISITION WILL TAKE OUT A MAJOR COMPETITOR AS FAR AS ALCO IS CONCERNED ALCO'S REMAINING COMPETITORS IN THE PAPER DISTRIBUTION BUSINESS INCLUDE INTERNATIONAL PAPER CO AND MEAD CORP ALCO SAID IT EXPECTS BUTLER BASED IN ENGLEWOOD COLO TO ADD TO EARNINGS IN ALCO'S CURRENT FISCAL YEAR WHICH ENDS SEPT 30 ALTHOUGH THE ACQUISITION WILL BE FINANCED BY DEBT ALCO WILL STILL BE ABLE TO STAY BELOW A 34 DEBTTOCAPITAL RATIO AND HAVE ROOM FOR MORE ACQUISITIONS THIS FISCAL YEAR A SPOKESWOMAN SAID THE COMPANY SAID IT HAD NO IMMEDIATE PLANS TO INTEGRATE BUTLER WITH ITS 45 BILLION PAPER DISTRIBUTION GROUP PAPER CORP OF AMERICA AND ADDED THAT BUTLER WOULD CONTINUE TO OPERATE WITH ITS EXISTING MANAGEMENT TEAM THE DEAL IS SUBJECT TO APPROVAL BY REGULATORS AND BOTH COMPANIES' BOARDS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY GEORGIAPACIFIC STOCK WAS QUOTED AT 6550 UP 225 WHILE ALCO STOCK WAS AT 42625 UNCHANGED SELLING BUTLER PAPER SHOULD HELP GEORGIAPACIFIC REACH ITS TARGET OF REDUCING DEBT TO A 5 BILLIONTO55 BILLION RANGE FROM THE CURRENT 58 BILLION AT THAT POINT THE COMPANY HAS SAID IT MAY BEGIN BUYING BACK STOCK STILL SOME ANALYSTS BELIEVE ADDITIONAL ASSET SALES MAY BE COMING INCLUDING POSSIBLY THE MAILWELL ENVELOPE BUSINESS WHICH GEORGIAPACIFIC HAD RUN UNDER BUTLER BUT WHICH ISN'T PART OF THE SALE GEORGIAPACIFIC SAID IT HAD NO ANNOUNCEMENT TO MAKE ABOUT MAILWELL BUT ADDED THAT THE COMPANY WAS EXAMINING ASSETS FOR THEIR STRATEGIC FIT 9303160019 930316 ENTERPRISE FOCUS ON FRANCHISING FEDERAL BILL CALLS FOR COMPREHENSIVE DATA ON FRANCHISES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL BILL CALLS FOR BETTER INFORMATION ABOUT FRANCHISES WHEN REP JOHN J LAFALCE D NY LAST WEEK ESSENTIALLY REINTRODUCED TWO TOUGH BILLS TO GOVERN FRANCHISERS HE UNVEILED A THIRD MEASURE AS WELL IT CALLS FOR COMPREHENSIVE AND ACCURATE STATISTICAL INFORMATION ABOUT FRANCHISING INCLUDING ANNUAL FIGURES ON THE FRANCHISER POPULATION TURNOVER IN FRANCHISE OWNERSHIP AND THE RATE OF FRANCHISE FAILURES FRANCHISERS WHICH MUST NOW GIVE DISCLOSURE DOCUMENTS TO FRANCHISE APPLICANTS WOULD HAVE TO GIVE COPIES TO UNCLE SAM TOO USING THAT AND OTHER DATA THE COMMERCE DEPARTMENT THEN WOULD COMPILE ANALYZE AND PUBLISH STATISTICS ON FRANCHISE OWNERSHIP AND PERFORMANCE AND ON NATIONAL FRANCHISING PRACTICES THE CENSUS BUREAU WOULD PITCH IN BY INCLUDING FRANCHISING QUESTIONS IN ITS BUSINESS CENSUS EVERY FIVE YEARS THE BILL AIMS TO FILL A VOID OF RELIABLE STATISTICS ABOUT FRANCHISING REP LAFALCE SAYS COMMERCE DEPARTMENT FRANCHISING FIGURES COMPILED BEFORE 1987 WHEN SUCH STUDIES WERE ENDED FOR BUDGETARY REASONS ARE WIDELY MISREPRESENTED HE MAINTAINS EVEN SYSTEMS WITH HIGH RATES OF FRANCHISE TURNOVER OR FAILURE HAVE BEEN ABLE TO CONCEAL THIS INFORMATION FROM PROSPECTIVE INVESTORS BY USING BROAD UNSUBSTANTIATED DATA SHOWING FRANCHISES GENERALLY TO BE SUCCESSFUL HE SAYS THE OTHER LAFALCE BILLS WHICH WOULD BROADEN FRANCHISERS' REQUIRED DISCLOSURES AND GIVE FRANCHISEES MORE RIGHTS IN THE FRANCHISE RELATIONSHIP ARE LARGELY THE SAME AS LAST YEAR'S VERSIONS IN ONE IMPORTANT CHANGE HOWEVER ONE BILL NOW WOULD BAR FRANCHISERS FROM PUTTING NEW OUTLETS IN UNREASONABLE PROXIMITY TO EXISTING ONES THOUGH FRANCHISERS OPPOSE THE FIRST TWO LAFALCE BILLS THEY ARE LIKELY TO SUPPORT THE NEW DATACOLLECTION BILL SOME FRANCHISERS SAY ACCURATE DATA ON FAILURE RATES FOR INSTANCE WOULD STRENGTHEN THEIR CASE AGAINST THE PROPOSED CURBS ON THEIR PRACTICES THE BEST FRANCHISES A BOOK LISTS 220 BUT OMITS NEGATIVES BERTELSMANN AG'S BANTAM BOOKS UNIT IN NEW YORK IS SELLING AN UPDATED VERSION OF THE 220 BEST FRANCHISES TO BUY WHICH FIRST APPEARED IN 1987 HERE IS EVERYTHING PROSPECTIVE FRANCHISEES NEED TO KNOW TO GET IN ON THE GROUND FLOOR BANTAM'S PROMOTIONAL MATERIAL SAYS THE 1295 PAPERBACK IS CRAMMED WITH FACTS ON FRANCHISES AND ADVICE ON SELECTING ONE BUT THE BOOK ACTUALLY CONTAINS FAR LESS THAN EVERYTHING A FRANCHISEE MIGHT WANT CONSIDER THE FIRST ENTRY IN THE BOOK WHICH IS ARRANGED BY FRANCHISE TYPE CAR CHECKERS OF AMERICA INC THERE IS NO MENTION OF RECENT FEDERAL TRADE COMMISSION CHARGES THE AUTOINSPECTION COMPANY FABRICATED FRANCHISEE SUCCESS STORIES CAR CHECKERS OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE ENTRY FOR SUBWAY SANDWICHES & SALADS FRANCHISED BY DOCTOR'S ASSOCIATES INC NOTES THAT NEW UNITS OPEN AT THE RATE OF ABOUT THREE PER DAY BUT THE BOOK OMITS WIDELY REPORTED FRANCHISEE COMPLAINTS THAT THEIR SUBWAY SHOPS FAILED OR PROVIDED LITTLE INCOME SUBWAY HAS SAID MOST OF ITS FRANCHISEES ARE SATISFIED REBECCA CABAZA A BANTAM EDITOR SAYS THE BOOK'S AUTHORS TRIED TO WEED OUT BAD FRANCHISES PHILIP LIEF WHOSE SOCALLED BOOKPACKAGING COMPANY DEVELOPED THE BOOK SAYS HE DISCOUNTED THE SUBWAY FRANCHISEE FAILURES BECAUSE THE BIG CHAIN ALSO HAS MANY SUCCESSFUL UNITS MR LIEF SAYS HE NOW DEEMS CAR CHECKERS UNFIT FOR INCLUSION BUT THIS DECISION CAME TOO LATE TO CHANGE THE BOOK HE ADDS THE NUTMEG STATE SPICES UP THE DEBATE OVER FRANCHISEE PROTECTION CONNECTICUT BECOMES THE LATEST IN A STRING OF STATES LED BY IOWA LAST YEAR TO WEIGH SWEEPING MEASURES AIMED AT GIVING FRANCHISEES MORE POWER IN THEIR RELATIONSHIP WITH FRANCHISERS THE GENERAL ASSEMBLY'S COMMERCE COMMITTEE PLANS A HEARING THIS AFTERNOON ON A PROPOSED CONNECTICUT FRANCHISE INVESTMENT ACT SAYS SEN JOSEPH CRISCO A WOODBRIDGE DEMOCRAT AND THE COMMITTEE'S COCHAIRMAN THOUGH THE 23MEMBER PANEL COLLECTIVELY PROPOSED THE BILL MR CRISCO SAYS IT'S TOO EARLY TO KNOW IF THE BILL WILL CLEAR THE COMMITTEE THE BILL ADDRESSES A NUMBER OF FRANCHISEE CONCERNS SUCH AS ENCROACHMENTS BY NEW FRANCHISES ON THE TERRITORY OF EXISTING ONES THE BILL WOULD MAKE IT UNLAWFUL FOR A FRANCHISER TO PLACE A NEW FRANCHISED UNIT WITHIN A MILE OF AN OLDER ONE THE MEASURE EVEN WOULD BAR A NEW UNIT FARTHER AWAY IF IT CANNIBALIZED 10 OR MORE OF AN EXISTING UNIT'S ANNUAL SALES THE BILL IS REPUGNANT TO FRANCHISERS SAYS DAVID J KAUFMAN A NEW YORK LAWYER REPRESENTING FRANCHISER PEPSICO INC WHO INTENDS TO OPPOSE THE BILL AT THE HEARING IT GOES FURTHER THAN LAFALCE FURTHER THAN IOWA FURTHER THAN EVERYONE ELSE HE SAYS IMITATION ISN'T FLATTERY IT'S ROBBERY A CHEESESTEAK CHAIN CLAIMS ESCAPE ENTERPRISES INC THE COLUMBUS OHIO FRANCHISER OF THE 90UNIT STEAK ESCAPE TAKEOUT CHAIN ALLEGES THAT A RIVAL IS COPYING ITS STORE AND MENU DESIGN PRODUCT NAMES COOKING PROCESS AND OTHER DETAILS IN TWO LAWSUITS FILED LAST MONTH IN FEDERAL COURT IN CINCINNATI THE COMPANY SEEKS DAMAGES FROM NICAR HOLDING INC OF HAMILTON OHIO AND RELATED PARTIES IN COURT PAPERS ESCAPE ENTERPRISES CHARGES THAT NICAR FOUNDER NICOLA J LANNI SIMPLY COPIED EVERY ASPECT OF THE CHAIN FOR HIS OWN FRANCHISE FORMATS GREAT STEAK & FRY CO AND GREAT STEAK & POTATO CO RATHER THAN BECOME A STEAK ESCAPE FRANCHISEE ONE SUIT SEEKS DAMAGES FROM ABOUT 40 FRANCHISEES OF THOSE FORMATS THE CHARGES ARE BASELESS AND STEM FROM BUSINESS JEALOUSY MR LANNI REPLIES HE SAYS HIS FRANCHISE SYSTEM WITH 110 OUTLETS HAS SURPASSED THE OLDER GREAT ESCAPE CHAIN SO GREAT ESCAPE OFFICIALS NOW ARE TRYING TO TARNISH OUR REPUTATION IN ORDER TO SLOW OUR GROWTH AND GET MORE LOCATIONS THEMSELVES HE SAYS LAST JUNE A US SUPREME COURT DECISION MADE IT EASIER FOR COMPANIES TO PREVENT COMPETITORS FROM IMITATING THE GENERAL APPEARANCE OR IMAGE OF PRODUCTS OR SERVICES BRIEFS IN WATKINS GLEN NY THE FIRST US BURGER KING OUTLET TO OFFER A SPICY BEAN BURGER MADE LARGELY OF KIDNEY BEANS SAYS THE ITEM NOW IS OUTSELLING REGULAR HAMBURGERS THE INTERNATIONAL FRANCHISE EXPO A FRANCHISER TRADE SHOW FORECASTS MORE THAN 450 EXHIBITORS IN WASHINGTON DC NEXT MONTH UP FROM 330 LAST YEAR 9303160018 930316 CARNAUDMETALBOX VIETNAM PACT PARIS CARNAUDMETALBOX SA SAID IT SIGNED AN AGREEMENT WITH THE VIETNAMESE GOVERNMENT UNDER WHICH IT WILL SET UP A BEVERAGE CAN MANUFACTURING FACILITY IN A 70/30 JOINT VENTURE WITH SAIGON BREWERY A VIETNAMESE STATEOWNED COMPANY THE ANGLOFRENCH GROUP SAID THE PROJECT WILL REQUIRE AN INVESTMENT OF 250 MILLION FRANCS 442 MILLION FOR A FIRST PRODUCTION LINE SAIGON BREWERY IS VIETNAM'S BIGGEST BREWER WITH A 40 LOCAL MARKET SHARE THE INVESTMENT IS PART OF A BROADER STRATEGY UNDER WHICH CARNAUDMETALBOX PLANS TO STRENGTHEN ITS PRESENCE IN THE ASIA/PACIFIC REGION THE GROUP RECENTLY ACQUIRED THE LEADING PACKAGING COMPANY IN MALAYSIA 9303160017 930316 BUSINESS BRIEF MAXUM HEALTH CORP LENDERS BAR NEW BORROWING VIA REVOLVING CREDIT LINE FINANCIALLY TROUBLED MAXUM HEALTH CORP SAID ITS LENDERS HAD BARRED IT FROM FURTHER BORROWING UNDER ITS 55 MILLION REVOLVING CREDIT LINE AS A RESULT THE DALLASBASED COMPANY SAID IT MIGHT NOT BE ABLE TO MEET ABOUT 1 MILLION IN MONTHLY PAYMENTS DUE TO ITS MEDICAL EQUIPMENT LESSORS THIS MONTH THE MEDICAL DIAGNOSTIC IMAGING COMPANY SAID IT WAS PROCEEDING WITH NORMAL OPERATIONS BUT WAS ASSESSING ITS OPTIONS AND HAD ENTERED INTO DISCUSSIONS WITH ITS LESSORS NANCY J CORDAY CHIEF OPERATING OFFICER SAID SEEKING BANKRUPTCY COURT PROTECTION WAS A POSSIBILITY BUT ONLY IF EVERYBODY IN AGGREGATE WAS INTRANSIGENT SO FAR PEOPLE HAVE BEEN ABLE TO SIT DOWN WITH US AND I THINK WE HAVE BEEN ABLE TO MAKE GOODFAITH PROGRESS SHE SAID MAXUM'S SHARES WERE UNCHANGED AT 1625 BEFORE TRADING WAS HALTED LATE MONDAY ON THE AMERICAN STOCK EXCHANGE ON MARCH 1 MAXUM STOCK TUMBLED 52 TO 150 AFTER THE COMPANY SAID IT WOULD REPORT A SIGNIFICANT LOSS FOR THE YEAR 9303160016 930316 ECONOMY USMADE CARS LIGHT TRUCKS POST FLAT SALES WEAK PACE IN EARLY MARCH IS LAID TO BAD WEATHER IN MUCH OF THE COUNTRY BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE EARLY MARCH SELLING PACE OF USBUILT CARS AND LIGHT TRUCKS CAME IN ABOUT EVEN WITH THE PREVIOUS 30DAY PERIOD AND INDUSTRY OBSERVERS BLAMED THE LACKLUSTER RESULTS ON HARSH WEATHER CONDITIONS THE COMBINED ANNUALIZED SALES PACE OF US BUILT CARS AND LIGHT TRUCKS ROSE TO 109 MILLION VEHICLES IN THE MARCH 110 PERIOD UP FROM THE 108 MILLION SELLING PACE IN THE PREVIOUS 30DAY PERIOD AND UP CONSIDERABLY FROM THE YEAREARLIER PACE OF 99 MILLION VEHICLES IT'S A NICE BUMP UP FROM THE LATEFEBRUARY NUMBERS BUT AVERAGED OUT THE UPTURN REMAINS MODEST SAID TOM WEBB CHIEF ECONOMIST OF THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION THE SELLING RATE FOR NORTH AMERICANBUILT PASSENGER CARS WAS 65 MILLION UNITS IN EARLY MARCH UP FROM 54 MILLION IN LATE FEBRUARY MEANWHILE SALES OF LIGHT TRUCKS WHICH HAD BEEN STRONG IN PREVIOUS 10DAY PERIODS SLOWED IN MIDMARCH TO A PACE OF 44 MILLION VEHICLES DOWN FROM 47 MILLION VEHICLES IN THE PREVIOUS 30DAY PERIOD THE LATEST RESULTS INDICATE A MEDIOCRE ANNUALIZED SELLING PACE OF 127 MILLION VEHICLES ONCE IMPORT SALES ARE FACTORED IN BUT AUTO ANALYSTS BLAMED THE LACKLUSTER PACE ON SEVERE WEATHER CONDITIONS PUMMELING MUCH OF THE COUNTRY AND SALES AREN'T LIKELY TO HEAT UP UNTIL THE TEMPERATURE WARMS UP IN APRIL OVERALL AMERICANS PURCHASED 304176 CARS AND LIGHT TRUCKS IN EARLY MARCH UP 48 FROM THE 257988 SOLD A YEAR EARLIER THERE WERE NINE SELLING DAYS IN THE PERIOD COMPARED WITH EIGHT A YEAR EARLIER IN THE MARCH 110 PERIOD FORD MOTOR CO'S TOTAL VEHICLE SALES CONTINUED TO OUTPACE THE INDUSTRY RISING 133 FROM A YEAR EARLIER FORD'S LATEST RESULTS WERE HELPED BY STRONG SALES OF SEVERAL MODELS INCLUDING A 124 SURGE IN THUNDERBIRD SALES A 525 SALES JUMP IN PROBE SALES AND A 20 RISE IN SALES OF ITS FSERIES PICKUP TRUCKS THE BESTSELLING VEHICLE IN THE US HOWEVER GENERAL MOTORS CORP'S TOTAL VEHICLE SALES IN EARLY MARCH WERE OFF 05 FROM A YEAR EARLIER LARGELY HURT BY A 332 SLIDE IN CADILLAC'S SALES A 205 DROP IN OLDSMOBILE'S SALES AND A 147 DECLINE IN PONTIAC'S SALES THE SATURN DIVISION WOULDN'T CONFIRM OR DENY REPORTS IN AUTOMOTIVE NEWS AN INDUSTRY PUBLICATION THAT GM'S BESTSELLING DIVISION IS DELAYING FOR ONE YEAR AN EXTERIOR REDESIGN OF ITS VEHICLES BECAUSE OF A LACK OF FUNDS SATURN REPORTED A 573 SURGE IN THE LATEST PERIOD THE DIVISION HAS POSTED STRONG SALES SINCE IT WAS LAUNCHED THREE YEARS AGO BUT HAS YET TO TURN A PROFIT MEANWHILE THE JAPANESE AUTO MAKERS POSTED MIXED RESULTS COMPARED WITH YEAREARLIER RESULTS HONDA MOTOR CO'S TOTAL VEHICLE SALES SKIDDED 267 IN THE LATEST 10DAY PERIOD WHILE TOYOTA MOTOR CORP'S TOTAL VEHICLE SALES DROPPED 197 NISSAN MOTOR CO HOWEVER REPORTED AN 89 JUMP IN ITS MARCH 110 RESULTS AS MAZDA MOTOR CO POSTED A 296 BOOST IN SALES CHRYSLER CORP'S TOTAL VEHICLE SALES CLIMBED 24 IN THE LATEST 10DAY PERIOD ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE PUBLICATION CHRYSLER ITSELF DOESN'T REPORT 10DAY VEHICLE SALES 9303160015 930316 MARKETING & MEDIA COKE NESTLE JOINT VENTURE TAMPA FLA COCACOLA NESTLE REFRESHMENTS CO A JOINT VENTURE BETWEEN COCACOLA CO AND NESTLE SA SAID IT BEGAN SELLING FOUR NEW READYTODRINK NESTEA ICED TEAS THE FLAVORED TEAS RASPBERRY PEACH TROPICAL AND APPLE SPICE WERE LAUNCHED IN MAJOR MARKETS YESTERDAY ACCORDING TO A COMPANY SPOKESWOMAN SHE SAID NATIONAL DISTRIBUTION WILL BEGIN SHORTLY 9303160014 930316 FINANCING BUSINESS WEATHERFORD INTERNATIONAL INC WEATHERFORD INTERNATIONAL INC HOUSTON SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSED OFFERING OF EIGHT MILLION COMMON SHARES PROCEEDS FROM THE OFFERING TO BE MANAGED BY MERRILL LYNCH & CO WILL BE USED TO PAY DEBT ASSOCIATED WITH A PENDING ACQUISITION A WEATHERFORD SPOKESWOMAN SAID THE DIVERSIFIED ENERGY SERVICE COMPANY SAID IT HAD ABOUT 40 MILLION COMMON SHARES OUTSTANDING AS OF FEB 28 9303160013 930316 INTERNATIONAL GPA GROUP READY TO SEEK NEW INVESTORS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL GPA GROUP PLC APPEARS CERTAIN TO TURN TO NEW INVESTORS TO PUT UP PART OF THE 200 MILLION THE AIRCRAFT LEASING GIANT NEEDS IN FRESH CAPITAL ONE PERSON FAMILIAR WITH THE SITUATION SAID THAT FINANCIAL DIFFICULTIES WOULD PREVENT SEVERAL CURRENT SHAREHOLDERS FROM INVESTING FRESH CAPITAL IN GPA WHICH IS BASED IN SHANNON IRELAND THE SHORTFALL COULD BE ABOUT 80 MILLION HE ADDED GPA OFFICIALS DECLINED TO COMMENT BUT ANOTHER OFFICIAL FAMILIAR WITH THE TALKS SAID THAT THE COMPANY AND ITS MERCHANT BANKERS ARE BUSY TALKING TO OUTSIDE INVESTORS THE PERSON SAID THAT SOME OF THOSE POTENTIAL INVESTORS ARE SHOWING A LIVELY INTEREST IN THE COMPANY BETTING THAT THE INDUSTRY WILL SOON RECOVER FROM ITS TROUBLES THERE ARE A LOT OF BOTTOM FISHERS THE OFFICIAL SAID SOME OF THEM ARE GETTING READY TO POUNCE GPA HAS BEEN IN FINANCIAL DIFFICULTIES SINCE JUNE WHEN AN INITIAL PUBLIC OFFERING INTENDED TO RAISE 1 BILLION WAS PULLED FROM THE MARKETS BECAUSE OF A LACK OF INTEREST SOME OF GPA'S SHAREHOLDERS FACED WITH THEIR OWN FINANCIAL PROBLEMS HAVE BEEN EAGER TO SELL THEIR SHARES AND ARE SAID TO BE UNABLE TO MAKE ANY ADDITIONAL COMMITMENTS TO THE LEASING COMPANY FOR EXAMPLE AER LINGUS WHICH HOLDS A STAKE OF ABOUT 8 IN GPA IS HEAVILY INDEBTED AFTER THREE YEARS OF LOSSES TOTALING AN ESTIMATED 120 MILLION IRISH POUNDS OR PUNTS 1752 MILLION OTHER MAJOR SHAREHOLDERS INCLUDE MITSUBISHI TRUST & BANKING CORP AIR CANADA PRUDENTIAL INSURANCE CO OF AMERICA IRISH LIFE ASSURANCE THE INVESTMENT BANK OF IRELAND AND GPA CHAIRMAN TONY RYAN GPA HAS ALREADY FORGED AGREEMENTS WITH AIRCRAFT MAKERS TO CUT BACK ON ORDERS IT HAS PLACED TO UNDER 4 BILLION FROM MORE THAN 10 BILLION DEALS HAVE ALSO BEEN REACHED WITH 80 OF GPA'S LENDERS ON RESTRUCTURING THE COMPANY'S MORE THAN 5 BILLION IN DEBT THE FRESH CAPITAL HOWEVER IS THE THIRD CRUCIAL ELEMENT IN GPA'S RECOVERY PLAN GPA INITIALLY TURNED TO ITS CURRENT OWNERS TO PUT UP THE NEW FUNDS FOR WHICH NEW SHARES WILL BE ISSUED THE NEW SHARES ARE WIDELY SAID TO BE SET AT A PRICE OF 1 EACH BUT PEOPLE FAMILIAR TO THE SITUATION SAID YESTERDAY THAT THE PRICE ISN'T YET AGREED UPON 9303160012 930316 MARKETSCAN KRAFT PUTS THE CHEESE MARKET IN FERMENT BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG CHEESE IS THROWING ITS WEIGHT AROUND AFTER MORE THAN A YEAR OF DECLINING SALES AND MARKET SHARE KRAFT GENERAL FOODS INC IS USING EVERY PLOY AVAILABLE TO HOBBLE THE COMPETITION AND WHEN THE GIANT THAT CONTROLS NEARLY HALF OF THE 515 BILLION CHEESE MARKET BEGINS TO STIR THE TREMORS SHAKE THE ENTIRE CATEGORY FROM AN ACROSSTHEBOARD PRICE CUT TO COUPONS AND TRADE PROMOTIONS THE PHILIP MORRIS COS UNIT HAS PULLED OUT ALL STOPS TO JUMPSTART ITS SLUGGISH BUSINESS KRAFT NEEDS THE VOLUME AND NEEDS IT BADLY SAYS LEE GENTINE PRESIDENT OF RIVAL SARGENTO CHEESE CO WHILE KRAFT'S DOLLAR VOLUME WAS OFF SLIGHTLY IN THE 12 WEEKS ENDED DEC 27 AND MORE FOR THE YEAR ITS VOLUME IN POUNDS ROSE 37 IN THE 12WEEK PERIOD COMPARED WITH A 09 DECLINE FOR THE YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE CATEGORY FOLLOWED A SIMILAR PATTERN CHEESE DOLLAR VOLUME FELL 09 IN THE 12WEEK PERIOD WHILE POUND VOLUME ROSE 11 KRAFT'S DOLLAR MARKET SHARE ALSO GAINED SLIGHTLY IN THE 12WEEK PERIOD UP 02 COMPARED WITH A 16 DROP FOR THE YEAR THERE IS EVIDENCE THAT CHEAPER PRIVATELABEL COMPETITORS KRAFT'S MOST FORMIDABLE RIVALS IN RECENT YEARS MAY BE IN RETREAT DOLLAR SALES OF PRIVATELABEL CHEESE DIPPED 15 IN THE 12WEEK PERIOD COMPARED WITH A 31 INCREASE FOR THE YEAR ALL THIS LEADS SOME TO SUGGEST THAT DECLINES IN KRAFT'S CHEESE BUSINESS MAY FINALLY BE BOTTOMING OUT WE'RE ENCOURAGED BY TRENDS IN THE BUSINESS SAYS ROBERT A ECKERT EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF KRAFT'S RETAIL CHEESE DIVISION CONSUMERS HAVE RESPONDED FAVORABLY TO OUR NEW MARKETING INITIATIVES KRAFT REDUCED PRICES AN AVERAGE OF 8 EARLY LAST YEAR BRINGING ITS RETAIL PRICES BACK IN LINE WITH THOSE OF COMPETITORS KRAFT HAD TAKEN FIVE YEARS' WORTH OF PRICE HIKES IN TWO YEARS SAYS JOHN MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES INC THERE WAS A LOT OF PRICE COMPETITION AND KRAFT DECIDED TO MEET IT HEAD ON BUT WHETHER KRAFT'S GAINS CAN BE SUSTAINED GIVEN THE DOLDRUMS OF THE CHEESE MARKET IS BY NO MEANS CERTAIN LAST YEAR'S FOURTH QUARTER WAS MARKED BY WHAT SOME DESCRIBE AS THE MOST INTENSE PROMOTIONAL ACTIVITY BY CHEESE COMPANIES IN RECENT MEMORY ERODING PROFIT MARGINS IN WHAT WAS ONCE A HIGHMARGIN BUSINESS AND MANY WARN THAT THE APPEARANCE OF A SLEW OF NEW HEALTHY REDUCEDFAT PRODUCTS WILL LEAD TO A COSTLY SHAKEOUT IN THAT SECTOR OF THE CHEESE MARKET AS FOR THE CHEESE CATEGORY AS A WHOLE IT'S NOT A GROWTH MARKET INSISTS PRUDENTIAL'S MR MCMILLIN THERE'S SOME GROWTH IN THE DIET AND PREMIUM ENDS BUT NOT A WHOLE LOT CHEESE USUALLY CONSIDERED A DISCRETIONARY OR EVEN INDULGENCE ITEM HAS STAGNATED IN RECENT YEARS DUE TO THE RECESSION AND GROWING CONSUMER WORRIES ABOUT FAT AND CHOLESTEROL KRAFT'S OFFENSIVE HAS HURT RIVAL BORDEN INC ALTHOUGH BORDEN'S CHEESE SALES BEGAN TO PICK UP IN THE 12 WEEKS ENDED DEC 27 DOLLAR VOLUME FOR CHEESE STILL FELL 35 FOR THE PERIOD AND 97 FOR THE YEAR VOLUME IN POUNDS REFLECTING HEAVY DISCOUNTING GREW 49 IN THE PERIOD COMPARED WITH AN 84 DROP FOR THE YEAR BORDEN'S PROMOTIONAL SPENDING INCREASED 20 TO 30 LAST YEAR ACCORDING TO MITCH WIENICK SENIOR GROUP VICE PRESIDENT FOR DAIRY PRODUCTS WHO CONCEDES PROMOTIONS DON'T BUILD ANY LONGTERM INTEREST IN THE BRAND THE PROMOTIONAL FRAY HAS EVEN DENTED SALES OF SARGENTO WHICH HAD BEEN ENJOYING ANNUAL GROWTH RATES OF 15 AND SURPASSED BORDEN IN DOLLAR SALES DURING THE 12 WEEKS ENDED DEC 27 SARGENTO WHICH MAINLY SELLS PREMIUM SHREDDED CHEESES SAW ITS DOLLAR VOLUME SLIDE 33 IN THE 12WEEK PERIOD COMPARED WITH A 93 GAIN FOR THE YEAR THE LEVEL OF PROMOTIONS BY CHEESE COMPANIES WAS ABSOLUTELY THE HIGHEST WE HAVE EVER SEEN SAYS MR GENTINE WHILE PRIVATELY HELD SARGENTO JUMPED IN WITH SOME PROMOTIONS OF ITS OWN IT DIDN'T HAVE THE BUDGET FOR AN ALLOUT ONSLAUGHT MR GENTINE SAYS WHILE KRAFT CONCEDES THAT STRONG PROMOTIONAL PROGRAMS CONTRIBUTED TO ITS PERFORMANCE IT SAYS IT HAS ALSO BEEN HELPED BY PACKAGING IMPROVEMENTS AND THE INTRODUCTION OF NEW PRODUCTS THAT HELP NOTWITHSTANDING PROFITMARGIN SLIPPAGE IN KRAFT'S CHEESE BUSINESS LAST YEAR WAS IN THE TENS OF MILLIONS ESTIMATES AN INDUSTRY SOURCE WHO ADDS THEY'VE BEEN HURT A LOT FROM THIS KRAFT DECLINED TO COMMENT ON THE PROFITABILITY OF ITS CHEESE BUSINESS BORDEN'S MR WIENICK ESTIMATES THAT PRETAX PROFIT MARGINS ON ALL PROCESSED CHEESE WHICH AVERAGED 15 IN THE LATE 1980S HAVE FALLEN TO THE LEVELS OF MOST OTHER GROCERY ITEMS AROUND 9 TO 10 THERE'S BEEN LITTLE OPPORTUNITY TO INCREASE MARGINS HE SAYS ADDING THAT CHEESE PRICES ARE JUST ABOVE PRICESUPPORT LEVELS AND WE DON'T SEE THAT CHANGING IN THE NEAR TERM INDUSTRY WATCHERS ARE ALSO FRETTING ABOUT THE RECENT FLOOD OF REDUCEDFAT CHEESES JAMMING GROCERY SHELVES LAST YEAR KRAFT LAUNCHED ITS HEALTHY FAVORITES LINE OF 25 ITEMS WITH 50 LESS FAT WHILE CONAGRA INC RUSHED OUT ITS NOFAT HEALTHY CHOICE LINE BORDEN IS REFORMULATING ITS 20YEAROLD LITELINE BRAND TO ELIMINATE FAT MR WIENICK PREDICTS LOWFAT CHEESES COULD EVENTUALLY BECOME AS COMMONPLACE AS LOWFAT MILK BUT OTHERS BELIEVE THE INDUSTRY HAS VASTLY OVERESTIMATED THE POTENTIAL OF LOWFAT CHEESES THE CATEGORY STILL SUFFERS FROM THE PERCEPTION OF A HEALTH ISSUE IN THAT MANY HEALTHCONSCIOUS CONSUMERS AVOID ALL CHEESES EVEN THOSE LOW IN FAT SAYS NOMI GHEZ AN ANALYST WITH GOLDMAN SACHS & CO ANOTHER LIMITATION MARKETERS SAY CONSUMERS REGARD LOWFAT CHEESES AS LESS TASTY THAN THE REAL THING THE TECHNOLOGY IS SO ARCHAIC THAT AN ADEQUATE FAT SUBSTITUTE SIMPLY ISN'T THERE SAYS SARGENTO'S MR GENTINE NO MATTER WHAT ANYBODY SAYS WHETHER IT'S OUR BRAND OR KRAFT'S OR ANYONE ELSE'S REDUCEDFAT PRODUCTS ARE ABSOLUTELY INFERIOR TO FULLFAT PRODUCTS MR GENTINE COMPLAINS THAT SARGENTO'S SALES HAVE SLOWED IN PART BECAUSE ITS PRODUCTS ARE BEING CROWDED OFF STORE SHELVES BY THE DOZENS OF NEW HEALTHY ITEMS HE NOTES THAT IN SOME STORES 40 OF THE SPACE ALLOTTED TO HANGING BAGS OF CHEESE IS TAKEN UP BY REDUCEDFAT ITEMS WHICH REPRESENT ONLY 10 TO 12 OF THE MARKET THERE'S A REAL DISCREPANCY BETWEEN THE VOLUME OF LOWFAT PRODUCTS BEING GENERATED AND CONSUMER INTEREST HE SAYS WITH ALL THE HEALTHY PRODUCTS JOSTLING FOR ATTENTION MANY SAY A SHAKEOUT IS INEVITABLE THOUGH CONAGRA'S NOFAT CHEESES ARE SAID BY SOME IN THE INDUSTRY TO BE PERFORMING POORLY CONAGRA INSISTS THAT HEALTHY CHOICE OUTSELLS KRAFT'S HEALTHY FAVORITES BY 50 IN REGIONS WHERE THEY COMPETE THERE'S CATEGORY CLUTTER AND CONSUMER CONFUSION SAYS A SPOKESMAN FOR CONAGRA AND WE BELIEVE THE INDUSTRY WILL CLEANSE ITSELF AND EVENTUALLY ONLY INCLUDE FULLFAT OR FATFREE PRODUCTS IN THEIR BATTLE AGAINST PRIVATELABEL PRODUCTS SUCH CHEESE MAKERS AS KRAFT AND BORDEN HAVE CUT THEIR PRICES CAUSING DOLLAR SALES TO DECLINE EVEN AS UNIT VOLUME INCREASED 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 9303160011 930316 EMERSON RADIO POSTS FOURTHQUARTER NET NARROWER LOSS FOR '92 NORTH BERGEN NJ EMERSON RADIO CORP REPORTED A PROFIT FOR THE FOURTH QUARTER REVERSING A YEAREARLIER NET LOSS AND A NARROWER LOSS FOR 1992 BUT THE MAKER OF RADIOS TELEVISION SETS AND VIDEOCASSETTE RECORDERS SAID THAT IT EXPECTS A SHARP DROP IN REVENUE THIS YEAR RECENT DISCUSSIONS WITH IMPORTANT CUSTOMERS HAVE LED THE COMPANY TO CONCLUDE THAT IT WILL EXPERIENCE A SUBSTANTIAL DECLINE IN REVENUES A SPOKESMAN SAID AS A RESULT HE SAID EMERSON PLANS TO DOWNSIZE ITS OPERATIONS AND REDUCE THE COST STRUCTURE OF ITS CORE BUSINESSES THE ANNOUNCEMENT KNOCKED OFF ABOUT A THIRD OF EMERSON'S SHARE PRICE YESTERDAY THE STOCK CLOSED AT 1125 DOWN 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EMERSON HAS BEEN UNDER NEW MANAGEMENT SINCE LAST SUMMER WHEN A GROUP LED BY FIDENAS INVESTMENT LTD WON A PROXY FIGHT FOR CONTROL OF EMERSON'S BOARD EMERSON'S FOURTHQUARTER NET INCOME WAS 16 MILLION OR FOUR CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 5 MILLION OR 13 CENTS A SHARE REFLECTING RESTRUCTURING AND OTHER TAX CHARGES TOTALING 36 MILLION THE COMPANY ALSO NARROWED ITS FULLYEAR LOSS TO 239 MILLION OR 63 CENTS A SHARE FROM 607 MILLION OR 160 A SHARE IN 1991 THE 1992 LOSS INCLUDES A 222 MILLION PRETAX CHARGE FOR RESTRUCTURING AND OTHER ITEMS THE 1991 RESULT INCLUDED A 37 MILLION CHARGE EMERSON'S FOURTHQUARTER REVENUE FELL 9 TO 197 MILLION FROM 2176 MILLION BUT YEAREND REVENUE GREW TO 3 TO 8153 MILLION FROM 7902 MILLION STILL THE COMPANY EXPECTS LOSSES IN THE FIRST HALF OF 1993 IF NO SIGNIFICANT CHANGES ARE MADE IN ITS BUSINESS BECAUSE OF DECREASED SALES OF CERTAIN MODELS OF TELEVISIONS AND VCRS 9303160010 930316 MUTUAL FUNDS MUNI FUNDS SINK OR SWIM WITH INVERSE FLOATERS' BY THOMAS T VOGEL JR AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A PROFESSIONAL POKER PLAYER HITS A WINNING STREAK HE BETS ALL HIS WINNINGS ON THE NEXT HAND AND THE CROWD GASPS SOMETHING LIKE THIS IS HAPPENING IN THE MUTUALFUND INDUSTRY WHERE HEAVYWEIGHTS SUCH AS DREYFUS CORP AND PUTNAM COS ARE MAKING BIG BETS IN A LITTLEKNOWN CORNER OF THE MUNICIPALBOND MARKET TO SPICE UP RETURNS SOME MUNI FUNDS HAVE PUT 5 TO 15 OF THEIR MONEY INTO INVERSE FLOATERS NEVER HEARD OF THEM YOU HAVE PLENTY OF COMPANY BUT SALES OF MUNICIPAL INVERSE FLOATERS HAVE EXPLODED DURING THE PAST THREE YEARS TO 48 BILLION IN 1992 FROM JUST 100 MILLION IN 1990 SALES THIS YEAR MAY SET ANOTHER RECORD UNDERWRITERS SAY THAT MUNICIPALBOND FUNDS BUY MORE THAN 90 OF ALL INVERSE FLOATERS SO IF YOU OWN A MUNIBOND FUND THERE'S AN INCREASING CHANCE IT IS AT LEAST EXPERIMENTING IN THIS AREA INVERSE FLOATERS OFFER HIGHER YIELDS IN EXCHANGE FOR GREATER RISK PRICE GAINS FOR AN INVERSE FLOATER CAN BE TWICE AS LARGE AS THOSE FOR A STANDARD MUNICIPAL BOND DURING A BULL MARKET BUT IN A BEAR MARKET THE LOSSES CAN ALSO BE TWICE AS LARGE AND IN SOME CASES THERE APPEARS TO BE LITTLE DISCLOSURE TO MUNIBOND FUND INVESTORS ABOUT THE SPECIAL RISKS OF INVERSE FLOATERS MOM AND POP ARE LOOKING AT IT AS A PLAIN VANILLA' BOND FUND BUT THAT'S NOT WHAT THEY'RE GETTING SAYS JOSEPH DEANE MANAGING DIRECTOR OF TAXEXEMPT FIXEDINCOME MANAGEMENT AT SHEARSON LEHMAN ADVISORS SOON TO BECOME PART OF SMITH BARNEY SHEARSON I'M NO GUNSLINGER RETORTS JAMES ERICKSON CHIEF INVESTMENT OFFICER IN THE TAXEXEMPT GROUP AT PUTNAM A BIG OWNER OF INVERSE FLOATERS COMPETITORS ARE SIMPLY ENVIOUS AS HELL AT PUTNAM'S BIG GAINS WITH THESE SECURITIES HE SAYS PUTNAM FUNDS CAPTURED THE THIRD AND SEVENTHBEST RETURNS AMONG 119 GENERAL MUNICIPALBOND FUNDS IN 1992 ACCORDING TO LIPPER ANALYTICAL SERVICES MOREOVER SOME OF THE FORMER CRITICS ARE LOADING UP ON INVERSE FLOATERS THEMSELVES HE SAYS WHILE PUTNAM HAS STOPPED ADDING TO ITS POSITIONS WE THINK PEOPLE BUYING THEM NOW ARE THE LEMMINGS GOING OVER THE CLIFF SAYS MR ERICKSON MUNIFUND MANAGERS ARE SCRAMBLING TO FIND NEW INVESTMENTS FOR ONE THING THEY MUST REPLACE THE OLDER HIGHERYIELDING NOTES AND BONDS CALLED IN BY CITIES AND STATES THAT ARE REFINANCING DEBT AT LOWER RATES AS A RESULT FUND MANAGERS ARE BUYING A GROWING ARRAY OF EXOTIC AND OFTEN RISKIER SECURITIES OFFERING HIGHER YIELDS AND INVERSE FLOATERS ARE AMONG THE MOST POPULAR THESE INSTRUMENTS WHICH GO BY SUCH TRADEMARK NAMES AS RIBS RITES AND INVERSE RATE SECURITIES ARE AKIN TO DERIVATIVE SECURITIES DEVELOPED FOR TAXABLEBOND INVESTORS PRICES OF DERIVATIVE SECURITIES REFLECT PRICE CHANGES IN SOME UNDERLYING SECURITY OR FINANCIAL COMMODITY SUCH AS A STOCK BOND OR INDEX TO MAKE AN INVERSE FLOATER UNDERWRITERS TAKE A REGULAR BOND ISSUE FOR EXAMPLE A 30YEAR BOND WITH A COUPON OF 6 AND SPLIT IT INTO TWO PARTS HALF THE ISSUE PAYS A LOW MONEYMARKET RATE SAY AROUND 2 THAT FLOATS IN LINE WITH OTHER SHORTTERM INTEREST RATES THE OTHER PART THE INVERSE FLOATER GETS ALL THE REST OF THE BOND'S INTEREST PAYMENTS SO WHEN SHORTTERM RATES FALL YIELDS ON GARDENVARIETY FLOATERS FALL RIGHT ALONG WITH THEM BUT YIELDS ON INVERSE FLOATERS RISE BECAUSE THERE IS MORE INTEREST LEFT OVER FOR THEM HOLDERS OF INVERSE FLOATERS IN A BULL MARKET BENEFIT IN TWO WAYS NOT ONLY DO THEY GET HIGHER INTEREST PAYMENTS THEY ALSO SEE THE VALUE OF THEIR SECURITIES RISE ALONG WITH OTHER BONDS IN THE RALLY THE PROBLEM COMES WHEN SHORTTERM INTEREST RATES RISE IN THAT CASE THE REGULAR FLOATERS GET A BIGGER SHARE OF THE AVAILABLE INTEREST PAYMENTS WHICH EATS INTO WHAT'S LEFT OVER FOR INVERSE FLOATERS AS THE INVERSE FLOATERS' INTEREST PAYMENTS GO DOWN THEY BECOME LESS APPEALING AND THEIR PRICES CAN PLUNGE CREATING LOSSES FOR HOLDERS A RISE OF AS LITTLE AS 035 PERCENTAGE POINT IN SHORTTERM INTEREST RATES COULD PROMPT A SELLOFF OF THE INVERSE FLOATERS BEING MARKETED TODAY SOME INVESTORS SAY IF LONGTERM BOND YIELDS RISE THE PRICES OF INVERSE FLOATERS WOULD DROP EVEN MORE SO FAR THERE HASN'T BEEN A SUSTAINED BEAR MARKET IN MUNICIPAL BONDS IN THE THREE YEARS OR SO SINCE INVERSE FLOATERS WERE INTRODUCED BUT IF THEY BEHAVE LIKE SOME DERIVATIVE BONDS IN THE TAXABLEDEBT MARKET THEY MAY BECOME EXTREMELY HARD TO SELL IN A BEAR MARKET IN A DOWN MARKET OUR FEELING IS THAT THERE WILL BE A LIQUIDITY PROBLEM SAYS GREGORY HARRINGTON DIRECTOR OF MUNICIPAL RESEARCH AND TRADING AT FRANKLIN ADVISERS INC SINCE MUTUAL FUNDS ARE JUST ABOUT THE ONLY BUYERS OF INVERSE FLOATERS WHO WILL THEY SELL TO MR HARRINGTON SAYS THAT ALTHOUGH FRANKLIN HAS STUDIED INVERSE FLOATERS IT HASN'T BOUGHT ANY NOR DOES IT NOW PLAN TO BUY ANY MANY FUND MANAGERS WHO DO BUY INVERSE FLOATERS SAY THEY ARE KEEPING THEIR HOLDINGS UNDER 5 OF THE PORTFOLIO I THINK THAT'S A MANAGEABLE EXPOSURE SAYS PETER COFFIN A MUNICIPALBONDFUND MANAGER AT MASSACHUSETTS FINANCIAL SERVICES JEFFREY AUGUSTINE A MUNICIPALFUND MANAGER AT COLONIAL FUNDS SAYS THE HIGHYIELDING INSTRUMENTS HELP OFFSET THE PROBLEM OF REINVESTING COUPONS AND PRINCIPAL IN A LOWERINTERESTRATE ENVIRONMENT DREYFUS HAS BEEN A BIG BUYER OF INVERSE FLOATERS IN RECENT MONTHS AND NOT FOR THE FIRST TIME LAST SUMMER IT SOLD OFF ABOUT 150 MILLION IN INVERSE FLOATERS IN PART BECAUSE BOARD MEMBERS OF ITS FUNDS WORRIED ABOUT THE INSTRUMENTS BUT DURING THE PAST THREE MONTHS OR SO DREYFUS HAS BOUGHT AS MUCH AS 350 MILLION OF INVERSE FLOATERS BOOSTING ITS TOTAL HOLDINGS TO ABOUT 500 MILLION DREYFUS'S OPENEND FUNDS CURRENTLY HAVE 4 TO 5 OF THEIR PORTFOLIOS INVESTED IN INVERSE FLOATERS RICHARD MOYNIHAN PRESIDENT OF MUNICIPAL FUNDS AT DREYFUS SAYS HE HAS CONVINCED BOARD MEMBERS THAT INVERSE FLOATERS ARE STILL A GOOD BET WE HAD BOARD MEMBERS SCRATCHING THEIR HEADS WONDERING WHAT THEY WERE HE SAYS INVERSE FLOATERS WERE THE LAYUP OF ALL TIME WHEN THEY WERE INTRODUCED SAYS PUTNAM'S MR ERICKSON BUT NOW WE'RE TAKING A HOME RUN AND CONVERTING IT INTO DOUBLES AND SINGLES AT A TIME THAT OTHERS ARE TRYING TO HIT HOME RUNS ALTHOUGH PUTNAM HASN'T SOLD ITS INVERSE FLOATERS IT HASN'T BOUGHT ANY SINCE DECEMBER WHEN INVERSE FLOATERS REACHED AS MUCH AS 17 OF CERTAIN PUTNAM PORTFOLIOS MR ERICKSON SAYS NOW WITH MONEY POURING INTO THE FUNDS INVERSE FLOATERS HAVE DROPPED TO ABOUT 10 OF THE PORTFOLIOS HE SAYS AND THE OLDER INVERSE FLOATERS THAT PUTNAM HOLDS MR ERICKSON SAYS ARE LESS LIKELY TO PLUNGE WHEN INTEREST RATES RISE THAN TODAY'S LOWERCOUPON SECURITIES WOODROW CAMPBELL A MUTUALFUND ATTORNEY AND PARTNER AT DEBEVOISE & PLIMPTON SAYS FUNDS GENERALLY NEED TO DISCLOSE INVESTMENTS IN SUCH EXOTIC SECURITIES IF THEY CONSTITUTE 5 OR MORE OF ASSETS AT PUTNAM SOME MUNIFUND PROSPECTUSES DESCRIBE INVERSE FLOATERS IN DETAIL BUT OTHERS DON'T MENTION THESE INSTRUMENTS AND THE UNUSUAL RISKS THEY CARRY PUTNAM SAID DECISIONS ABOUT DISCUSSING INVERSE FLOATERS IN PROSPECTUSES ARE MADE ON A FUNDBYFUND BASIS PUTNAM RODE THE BULL MARKETS ON INVERSE FLOATERS QUITE SKILLFULLY THE 1992 TOTAL RETURN FOR PUTNAM MUNICIPAL INCOME FUND CLASS A SHARES WAS 113 WELL AHEAD OF THE 87 POSTED BY THE AVERAGE GENERAL MUNICIPALBOND FUND TOTAL RETURN IS THE FUND'S SHAREPRICE CHANGE PLUS DIVIDENDS AND MR ERICKSON THINKS HE CAN HANDLE ANY DOWNSIDE THAT MIGHT ARISE OTHERS ARE MORE SKEPTICAL IF YOU CAN PREDICT THE BEHAVIOR OF INVERSE FLOATERS JIBES SHEARSON'S MR DEANE CONGRATULATIONS YOU ARE THE FIRST PERSON ON EARTH TO DO SO 9303160009 930316 WHITE HOUSE LINKS SUMMERJOB PLAN TO MORE SCHOOLING BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED DETAILS OF ITS 2 BILLION SUMMERJOBS PROGRAM LINKING IT FOR THE FIRST TIME WITH TWO WEEKS OF EDUCATION TO REINFORCE WHAT STUDENTS LEARNED IN THE PRIOR SCHOOL YEAR BUT WHILE LABOR SECRETARY ROBERT REICH WANTED TO FOCUS ON THE EDUCATIONAL ASPECT OF THE PROJECT WHICH IS DESIGNED TO CREATE 13 MILLION SUMMER JOBS HE FOUND HIMSELF HAVING TO DEFEND AGAINST CRITICS WHO CONTEND THAT THE PLAN IS EXPENSIVE AND TEACHES TEENAGERS NOTHING ABOUT HOW TO WORK EVERY YEAR AROUND THIS TIME THE EDITORIALPAGE WRITERS COME OUT CITING EXAMPLES FROM THE '60S AND '70S OF THE FAILURES IN THE PROGRAM MR REICH TOLD A CONFERENCE OF EDUCATORS BUT WE NEED TO JUDGE THIS IN TERMS OF WHAT IT'S TRYING TO ACCOMPLISH HE SAID THE PROGRAM SHOULD BE EVALUATED NOT BY WHETHER IT CURES ALL URBAN ILLS BUT RATHER WHETHER IT GETS KIDS IN THE HABIT OF REPORTING FOR WORK BEING ON TIME COLLECTING A PAYCHECK WE NEED TO JUDGE THIS IN TERMS OF WHAT IT'S TRYING TO ACCOMPLISH CRITICS OF THE PROGRAM ARGUE FOR A MORE MARKETORIENTED APPROACH WITH THE GOVERNMENT OFFERING TAX CREDITS TO BUSINESSES TO EMPLOY DISADVANTAGED YOUTH MR REICH COUNTERED THAT THE GOVERNMENT MUST PROVIDE THE FUNDS TO CREATE ENOUGH SUMMER JOBS THE ALTERNATIVE FOR THESE KIDS IS TO BE ON THE STREET CORNER HE SAID THE ADMINISTRATION IS ASKING FOR 1 BILLION AS PART OF ITS ECONOMICSTIMULUS PACKAGE WHICH IT HOPES CONGRESS WILL APPROVE BY APRIL THE MONEY WOULD THEN BE ADDED TO 950 MILLION LEFT OVER FROM LAST YEAR'S PROGRAM WHICH WAS SCALED BACK BECAUSE CONGRESS DIDN'T APPROPRIATE THE MONEY UNTIL JUNE AND MANY CITIES WEREN'T ABLE TO GET PROJECTS RUNNING IN TIME AT THE SAME TIME MR REICH CHALLENGED PRIVATE INDUSTRY TO CREATE AS MANY JOBS AS THE GOVERNMENT IS FUNDING HE SAID HE HOPED TO RUN PUBLICSERVICE ADS WITH BUSINESS LEADERS BACKING THE NEW PROGRAM AND ENCOURAGING THEIR PEERS TO DO THE SAME OF THE NEW FUNDS SOUGHT BY THE ADMINISTRATION 400 MILLION WOULD BE USED TO EXPAND ALL CURRENT SUMMERJOBS PROGRAMS WHICH ARE RUN BY LOCAL GOVERNMENTS THE 100 CITIES WITH THE GREATEST NEEDS WOULD GET AN ADDITIONAL 300 MILLION THE REMAINING 300 MILLION WOULD BE USED FOR THE EDUCATIONAL PORTION OF THE PROGRAM PARTICIPANTS IN THE PROGRAM WOULD GET 1100 TO 1400 FOR EIGHT TO NINE WEEKS OF WORK AS PART OF THE PROGRAM INTENDED TO REACH 14 TO 21YEAROLDS STUDENTS WOULD BE REQUIRED TO TAKE TWO WEEKS OF CLASSES MOST LIKELY AT LOCAL SCHOOLS IN AN ATTEMPT TO HELP THEM RETAIN WHAT THEY LEARNED IN THE PRIOR SCHOOL YEAR STUDENTS WOULD BE ASSESSED BEFORE THEY START WORK AND AFTERWARD TO DETERMINE WHETHER THERE HAS BEEN EDUCATIONAL PROGRESS IN ADDITION THE SUMMERJOBS PROGRAM WILL BE GAUGED BY WHAT KIND OF JOBS HAVE PROVIDED THE MOST DISCIPLINE AND BUILT THE BEST WORK HABITS MR REICH TOLD REPORTERS AFTER THE CONFERENCE 9303160008 930316 SAUDI ARABIA DISCOVERS OIL AND GAS ON RED SEA COAST HOUSTON SAUDI ARABIA ANNOUNCED ITS FIRST OIL AND GAS DISCOVERY ON THE RED SEA COAST IN THE NORTHWESTERN PART OF THE KINGDOM THE NEW FIELD WHICH WAS FOUND BY SAUDI ARABIAN OIL CO OR ARAMCO IS IN THE MEDIAN REGION SOME 350 MILES NORTHWEST OF THE RED SEA INDUSTRIAL CITY OF YANBU ON THE WESTERN SIDE OF THE KINGDOM WITH OUTPUT OF SOME EIGHT MILLION BARRELS A DAY SAUDI ARABIA IS THE WORLD'S LARGEST OIL PRODUCER BUT THE BULK OF PRODUCTION IS IN EASTERN SAUDI ARABIA ON THE PERSIAN GULF SIDE ALTHOUGH SOME FIELDS HAVE RECENTLY BEEN FOUND IN THE CENTRAL PART SOUTH OF RIYADH THE SAUDI ANNOUNCEMENT OF THE RED SEA DISCOVERY PROVIDED FEW DETAILS BUT HISHAM NAZER THE SAUDI OIL MINISTER AND CHAIRMAN OF ARAMCO SAID FURTHER SEISMIC SURVEYS AND DRILLING WILL BE CARRIED OUT TO DETERMINE THE SIZE OF THE FIELD'S RESERVES 9303160007 930316 IBM'S SHORT LIST IN SEARCH FOR A CHIEF DWINDLES ONCE AGAIN MOTOROLA INC'S FISHER CROSSES HIMSELF OUT AS CONTENDER GERSTNER'S NAME STILL FLOATS BY MICHAEL W MILLER AND G CHRISTIAN HILL STAFF REPORTERS OF THE WALL STREET JOURNAL THE HIGHSTAKES HUNT FOR A NEW CHIEF EXECUTIVE TO RESCUE INTERNATIONAL BUSINESS MACHINES CORP LOST ANOTHER STRONG CONTENDER AS MOTOROLA INC CHAIRMAN GEORGE FISHER SAID HE ISN'T INTERESTED IN THE JOB AMID MOUNTING REPORTS THAT IBM DIRECTORS WERE SERIOUSLY CONSIDERING MR FISHER HE DECLARED IN A MESSAGE TO MOTOROLA EMPLOYEES ALTHOUGH IBM IS A FINE COMPANY I'M NOT INTERESTED IN THE POSITION I PLAN TO STAY AT MOTOROLA WHERE MY WORK IS CHALLENGING EXCITING AND REWARDING MR FISHER'S DEMURRAL ON THE HEELS OF SIMILAR NOTME STATEMENTS FROM THREE OTHER HIGHPROFILE EXECUTIVES THROWS THE IBM SEARCH INTO SOME UNCERTAINTY OFFICIALS WORKING ON THE SEARCH SAY IBM DIRECTORS WILL BEGIN PORING OVER NEW NAMES THAT WEREN'T ON THEIR INITIAL LIST THE BALLGAME IS STILL WIDE OPEN SAID ONE OFFICIAL CLOSE TO THE HIGHLY SECRETIVE SEARCH THE LIST CHANGES DAILY TWO CHIEF EXECUTIVES WIDELY CONSIDERED LEADING CONTENDERS STILL HAVEN'T PUBLICLY RULED THEMSELVES OUT LOUIS GERSTNER OF RJR NABISCO HOLDINGS CORP AND MORTON MEYERSON OF PEROT SYSTEMS CORP BOTH DECLINED TO COMMENT YESTERDAY ONE OFFICIAL FAMILIAR WITH THE IBM SEARCH SAID HE BELIEVED THAT AT ONE TIME THE BOARD HAD BEEN LEANING TOWARD THREE FINALISTS MR GERSTNER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY AND ALLIEDSIGNAL CHAIRMAN LAWRENCE BOSSIDY BUT BOTH MR SCULLEY AND MR BOSSIDY ISSUED NEWS RELEASES LAST WEEK DECLARING THAT THEY DIDN'T WANT THE TOP IBM JOB RETIRED HEWLETTPACKARD CHIEF EXECUTIVE JOHN YOUNG CONSIDERED A LESS SERIOUS CONTENDER ALSO PUBLICLY RULED HIMSELF OUT LAST WEEK RJR NABISCO DIRECTORS ARE KNOWN TO BE INCREASINGLY CONCERNED ABOUT IBM'S REPORTED INTEREST IN MR GERSTNER ESPECIALLY AS THE OTHER CONTENDERS FALL OFF THE LIST LIKE SUSPECTS IN AN AGATHA CHRISTIE MYSTERY MR GERSTNER'S PLANS ARE UP IN THE AIR SAID ONE DIRECTOR OF THE CIGARETTE AND FOOD COMPANY THE 50YEAROLD MR GERSTNER WOULD BE A CONTROVERSIAL CHOICE FOR IBM BECAUSE HE COMES FROM OUTSIDE THE COMPUTER INDUSTRY HIS SUPPORTERS ARGUE THAT HE UNDERSTANDS COMPUTERS FROM HIS DAYS AS PRESIDENT OF AMERICAN EXPRESS CO ONE OF THE WORLD'S MOST ADVANCED COMPUTER USERS AS A FORMER MCKINSEY & CO CONSULTANT HE ALSO HAS EXPERIENCE IN PARACHUTING INTO UNFAMILIAR CORPORATE TERRAIN A KEY QUESTION FOR IBM IS WHETHER MR GERSTNER WOULD WALK AWAY FROM A POTENTIAL GOLD MINE IN HIS RJR STOCKHOLDINGS WHEN HE JOINED RJR IN 1989 HE RECEIVED GRANTS AND OPTIONS FOR MORE THAN FIVE MILLION RJR SHARES MOSTLY AT 5 A SHARE INSIDE RJR MANAGERS SPEAK OPTIMISTICALLY OF GETTING THE STOCK UP TO AROUND 20 IN THE NEXT FEW YEARS BUT SO FAR DISCOUNT CIGARETTES AND MOUNTING NATIONWIDE OPPOSITION TO SMOKING HAVE KEPT RJR STOCK WELL BELOW THAT LOFTY LEVEL IT CLOSED FLAT YESTERDAY AT 825 RJR'S CONTROLLING SHAREHOLDER KOHLBERG KRAVIS ROBERTS & CO HAS SAID THAT MORE WORK REMAINS TO BE DONE TO MAKE RJR A BIG FINANCIAL SUCCESS WHILE KKR CAN'T FORCE MR GERSTNER TO STAY IT'S BELIEVED THAT TOP PARTNERS OF THE POWERFUL INVESTMENT FIRM ARE APPEALING TO MR GERSTNER'S SENSE OF OBLIGATION TO LEAVE THE COMPANY IN STRONG SHAPE BEFORE JUMPING TO A NEW JOB FURTHER COMPLICATING THE PICTURE FOR MR GERSTNER IBM IS ALSO BELIEVED TO BE INTERESTED IN RJR'S CHIEF FINANCIAL OFFICER KARL VON DER HEYDEN IBM IS REPORTEDLY SEARCHING FOR A REPLACEMENT FOR FORMER CFO FRANK METZ WHO RESIGNED IN THE SAME JANUARY BLOODLETTING THAT CLAIMED IBM CHIEF EXECUTIVE JOHN AKERS MR VON DER HEYDEN WHO WAS RECENTLY SEEN LUNCHING IN NEW YORK WITH A TOP EXECUTIVE SEARCH CONSULTANT DECLINED TO COMMENT MOTOROLA'S MR FISHER THROUGH A SPOKESMAN WOULDN'T SAY WHETHER HE HAD TALKED TO IBM THOUGH AN OFFICIAL CLOSE TO THE SEARCH SAID HE IS CERTAINLY AN OBVIOUS IDEA THAT CAN'T BE IGNORED THE 52YEAROLD EXECUTIVE HAS MADE MOTOROLA AN ENTREPRENEURIAL HOTBED OF SUCCESSFUL PRODUCTS IN WIRELESS COMMUNICATIONS AND MICROCHIPS IT'S BELIEVED THAT EARLY ON IN THE IBM SEARCH MR FISHER TOLD TOP MOTOROLA OFFICERS HE WASN'T INTERESTED IN THE IBM JOB HE APPARENTLY FELT COMPELLED TO COMMENT PUBLICLY AS RUMORS ABOUT HIM INTENSIFIED ESPECIALLY WITH LAST WEEK'S STATEMENTS FROM MESSRS BOSSIDY SCULLEY AND YOUNG SOME OFFICIALS CLOSE TO THE SEARCH SAY IBM ISN'T DEFINITIVELY RULING OUT THE POSSIBILITY THAT IT MIGHT YET ENTICE MR FISHER OR THE OTHER EXECUTIVES WHO HAVE PUBLICLY COUNTED THEMSELVES OUT IF THEY PUT THEIR MIND TO IT AND CAME TO SOMEBODY WITH A HARD OFFER SOME OF THOSE DENIALS WOULD WILT AWAY SAID ONE OFFICIAL SEPARATELY IBM DISCLOSED IN ITS ANNUAL PROXY STATEMENT THAT OUTGOING CHIEF EXECUTIVE JOHN AKERS SAW HIS 1992 COMPENSATION FALL 37 TO 13 MILLION FROM 208 MILLION IN 1991 BUT IBM GAVE HIM A 375000 BONUS EVEN THOUGH IBM REPORTED THE WORST RESULTS IN ITS HISTORY IN 1992 MR AKERS'S BASE SALARY STAYED FLAT AT 925000 HIS BONUS AMOUNT WAS DOWN FROM 650017 IN 1991 IBM ALSO ELIMINATED A RESTRICTEDSTOCK PROGRAM THAT GAVE MR AKERS AWARDS WORTH AN ADDITIONAL 499994 IN 1991 THE IBM PROXY EXPLAINS THAT MR AKERS'S BONUS IS BASED ON EARNINGSPERSHARE RETURN ON EQUITY AND CASH FLOW IN 1992 IBM POSTED A NET LOSS OF 497 BILLION OR 870 A SHARE GIVING IT A NEGATIVE RETURN ON EQUITY IBM'S STOCK FELL ROUGHLY IN HALF IN 1992 ASKED ABOUT THE BONUS AN IBM SPOKESMAN SAID IT IS BASED ON OPERATING RESULTS NOT NET RESULTS AFTER CHARGES IBM EARNED 240 A SHARE FROM OPERATIONS IN 1992 BEFORE MASSIVE CHARGES FOR CUTBACKS 9303160006 930316 RHONEPOULENC RORER STOCK COLLEGEVILLE PA RHONEPOULENC RORER SAID IT PLANS TO BUY BACK AS MANY AS FIVE MILLION COMMON SHARES IN THE OPEN MARKET FOR VARIOUS EMPLOYEE BENEFIT PLANS THE PHARMACEUTICAL COMPANY HAS ABOUT 1382 MILLION SHARES OUTSTANDING 9303160005 930316 FIRMS AFFECTED BY BLIZZARD ARE GIVEN RELIEF BY IRS WASHINGTON THE INTERNAL REVENUE SERVICE SAID IT WILL GRANT RELIEF TO CORPORATIONS THAT WERE UNABLE TO MEET YESTERDAY'S DEADLINE FOR FILING THEIR INCOME TAX RETURNS BECAUSE OF THE SNOW STORM THAT BLANKETED THE EAST COAST TAXPAYERS WILL HAVE UNTIL MARCH 31 TO FILE AND PAY THE FEDERAL TAX OR TO FILE FOR AN EXTENSION ACCORDING TO THE IRS NORMALLY MARCH 15 IS THE FILING DATE FOR CALENDARYEAR CORPORATE RETURNS THE FILING EXTENSION IS AVAILABLE TO TAXPAYERS DIRECTLY AFFECTED BY THE STORM AS WELL AS TO THOSE WHOSE RETURNS ARE BEING COMPLETED BY PREPARERS AFFECTED BY THE STORM THE IRS SAID TAXPAYERS SHOULD WRITE BLIZZARD ON THEIR RETURNS 9303160004 930316 WHO'S NEWS TOP TREASURY OFFICIAL WILL SERVE AS CHIEF OF RTC TEMPORARILY WASHINGTON PRESIDENT CLINTON CHOSE DEPUTY TREASURY SECRETARY ROGER ALTMAN TO BE TEMPORARY HEAD OF THE RESOLUTION TRUST CORP THE GOVERNMENT'S THRIFTINSTITUTION CLEANUP AGENCY MR ALTMAN TOOK ON THE ADDITIONAL RTC DUTIES FOLLOWING THE DEPARTURE YESTERDAY OF ALBERT CASEY AFTER 1 1/2 YEARS AT THE AGENCY'S HELM MR ALTMAN WILL FILL IN UNTIL A PERMANENT RTC CHIEF EXECUTIVE OFFICER CAN BE FOUND SAID THE TREASURY DEPARTMENT WHICH OVERSEES THE AGENCY MR ALTMAN WON'T HAVE TO RECUSE HIMSELF FROM ANY MAJOR RTC DECISIONS DESPITE SOME PAST DEALINGS BETWEEN THE AGENCY AND THE BLACKSTONE GROUP AN INVESTMENT FIRM WHERE HE WAS VICE CHAIRMAN SAID TREASURY SPOKESWOMAN JOAN LOGUEKINDER SHE SAID MR ALTMAN ISN'T CURRENTLY DOING ANY BUSINESS WITH THE RTC AND ISN'T CONNECTED WITH ANY COMPANY THAT DOES BUSINESS WITH THE AGENCY WHILE THE WHITE HOUSE HAD SAID THAT MR ALTMAN AS A TREASURY OFFICIAL WOULD RECUSE HIMSELF FROM ANY MATTER INVOLVING HIS FORMER FIRM MS LOGUEKINDER SAID THAT BLACKSTONE DOESN'T EXPECT TO HAVE ANY DEALINGS WITH THE RTC SHE SAID MR ALTMAN MIGHT HAVE TO RECUSE HIMSELF FROM CERTAIN MINOR MATTERS THAT COULD INVOLVE THE RTC FOR EXAMPLE HE HAS A CREDIT CARD FROM AMERICAN EXPRESS CENTURION BANK ON SUCH MATTERS TOP RTC STAFF OFFICIALS WOULD HAVE THE AUTHORITY TO MAKE ANY DECISIONS WHICH THEY REGULARLY MAKE IN ANY CASE THE SPOKESWOMAN SAID MR CASEY HAS BEEN UNDER FIRE FOR ALLEGED RTC CONTRACTING IRREGULARITIES AND OTHER PROBLEMS HE HAS SAID HE WAS LEAVING THE AGENCY BECAUSE HE COULDN'T GET ANY RESPONSE FROM THE CLINTON ADMINISTRATION TO HIS SUGGESTIONS FOR AN EARLY WRAPUP OF THE RTC'S TASK OF CLOSING FAILED THRIFTS AND DISPOSING OF THEIR ASSETS 9303160003 930316 POLITICS & POLICY LEVITT LEADING CANDIDATE TO HEAD SEC QUESTIONED ON '86 BUSINESS TRANSACTION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ARTHUR LEVITT JR THE LEADING CANDIDATE FOR CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION WAS ACCUSED BY A RIVAL PUBLISHER OF USING CONFIDENTIAL INFORMATION IN THE PURCHASE OF ROLL CALL HIS CAPITOL HILL NEWSPAPER IN 1986 ACCORDING TO JOHN FOX SULLIVAN PUBLISHER OF THE NATIONAL JOURNAL MAGAZINE MR LEVITT PURSUED AND THEN PURCHASED ROLL CALL ONLY AFTER LEARNING ABOUT ITS AVAILABILITY AND PROFIT POTENTIAL DURING CONFIDENTIAL TALKS ABOUT BUYING THE NATIONAL JOURNAL MR LEVITT DENIES USING ANY CONFIDENTIAL INFORMATION IN HIS BID FOR ROLL CALL AND IN ANY CASE NO SECURITIES LAWS WOULD HAVE BEEN VIOLATED IN THE PURCHASE IT ALSO ISN'T CLEAR WHETHER THE BUSINESS DISPUTE WILL HAVE ANY EFFECT ON THE LIKELIHOOD OF MR LEVITT'S BEING NOMINATED OR CONFIRMED FOR THE SEC POST WHITE HOUSE OFFICIALS SAID THEY HADN'T ANY KNOWLEDGE OF THE ACCUSATION MR LEVITT IN AN INTERVIEW YESTERDAY SAID HE DID NOTHING WRONG IN ACQUIRING ROLL CALL WHICH WAS ONE OF SEVERAL PUBLICATIONS HE WAS CONSIDERING BUYING AT THE TIME THIS IS THE VERY FIRST THAT I'VE HEARD OF THIS FROM ANY REPRESENTATIVE OF THE NATIONAL JOURNAL HE SAID I HAVEN'T RECEIVED ANYTHING IN WRITING IN PERSON OR ON THE PHONE I'M ASTONISHED THEY WOULD TAKE THAT POSITION SO LONG AFTER THE PURCHASE BUT MR SULLIVAN'S ACCOUNT WHICH WAS LARGELY BACKED BY SIDNEY YUDAIN THE MAN FROM WHOM MR LEVITT BOUGHT ROLL CALL MAY RAISE QUESTIONS ABOUT MR LEVITT'S BUSINESS PRACTICES I DON'T THINK IT WAS THE HEIGHT OF ETHICS MR YUDAIN SAID OF MR LEVITT'S ACTIONS MR LEVITT BOUGHT ROLL CALL IN 1986 WHEN HE WAS CHAIRMAN OF THE AMERICAN STOCK EXCHANGE SOON AFTER TALKING TO EXECUTIVES OF THE NATIONAL JOURNAL ABOUT PURCHASING THAT PUBLICATION AT THE TIME THE NATIONAL JOURNAL WAS ACTIVELY PURSUING THE PURCHASE OF ROLL CALL ACCORDING TO A MEMO WRITTEN IN 1986 BY ANTHONY STOUT THEN THE OWNER OF NATIONAL JOURNAL MR STOUT DISCUSSED WITH MR LEVITT HIS NEGOTIATIONS TO ACQUIRE ROLL CALL HIS RATIONALE FOR THE PURCHASE AND THE FACT THAT MR YUDAIN MIGHT BE WILLING TO SELL THE PROPERTY FOR VERY LITTLE IN THE MEMO MR STOUT STATES THAT AT HIS INSISTENCE MR LEVITT AGREED TO ABSOLUTE CONFIDENTIALITY IN THE DISCUSSIONS NOT LONG THEREAFTER MR LEVITT BOUGHT ROLL CALL FOR 500000 HE MR LEVITT LEARNED ABOUT ITS EXISTENCE ITS AVAILABILITY AND WHAT COULD BE DONE WITH IT FROM US AND WE BELIEVED THAT WAS CONFIDENTIAL INFORMATION MR SULLIVAN SAID IN AN INTERVIEW YESTERDAY MR STOUT COULDN'T BE REACHED FOR COMMENT MR YUDAIN SAID HE BELIEVES THAT MR LEVITT GOT THE IDEA FOR BUYING ROLL CALL FROM THE NATIONAL JOURNAL EXECUTIVES SPEAKING OF THE NATIONAL JOURNAL EXECUTIVES MR YUDAIN SAID THEY TOLD LEVITT THAT SOME VERY EXCITING THINGS WERE ON TAP INCLUDING THE PURCHASE OF ROLL CALL PRIOR TO THAT CONVERSATION MR YUDAIN SAID I DON'T THINK IT EVER OCCURRED TO HIM TO BUY IT MR YUDAIN SAID HE RECEIVED A CALL FROM HIS BROTHER ABOUT MR LEVITT'S INTEREST IN FEBRUARY FOLLOWING THE JAN 31 MEETING AT WHICH MR LEVITT AND THE NATIONAL JOURNAL'S MR STOUT DISCUSSED ROLL CALL MR SULLIVAN SAID THAT THE NATIONAL JOURNAL SERIOUSLY CONSIDERED SUING MR LEVITT OVER THE INCIDENT AND GOT A LAWYER'S OPINION ABOUT THE SUIT'S VIABILITY THEY THOUGHT THAT WE HAD A GOOD CASE BUT IT WAS NOT A SLAM DUNK MR SULLIVAN REPORTED IN THE END NO SUIT WAS FILED MR SULLIVAN SAID BECAUSE THE LITIGATION COULD HAVE BEEN LENGTHY AND IN THE MEANTIME THE NATIONAL JOURNAL ITSELF WAS ACQUIRED BY TIMES MIRROR CO CHRISTI HARLAN CONTRIBUTED TO THIS ARTICLE 9303160002 930316 IPALCO UNVEILS PLAN FOR 15 BILLION BID TO BUY PSI VIA A DIRECT OFFER TO HOLDERS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IPALCO ENTERPRISES INC DISCLOSED PLANS TO MAKE AN UNSOLICITED 15 BILLION TENDER OFFER FOR PSI RESOURCES INC IN AN EFFORT TO DERAIL PSI'S EARLIERANNOUNCED PLAN TO MERGE WITH A CINCINNATI UTILITY THE PARENT OF INDIANAPOLIS POWER & LIGHT CO SAID IT WILL OFFER PSI HOLDERS 2650 A SHARE IN STOCK AND CASH THAT MARKS A SOLID PREMIUM TO THE PRICE AT WHICH PSI SHARES HAVE BEEN TRADING SINCE THE INDIANA UTILITY AGREED IN DECEMBER TO COMBINE WITH CINCINNATI GAS & ELECTRIC CO INTO A NEW COMPANY TO BE NAMED CINENERGY CORP WHILE PRAISING THE BENEFITS OFFERED BY AN IPALCO/PSI UNION IPALCO ALSO MOVED TO THROW SAND IN THE GEARS OF PSI'S EFFORT TO LINK UP WITH AN OUTOFSTATE UTILITY JOHN R HODOWAL IPALCO'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE WERE DISAPPOINTED THAT PSI AGREED TO THE CG&E/PSI MERGER WITHOUT GIVING US AN OPPORTUNITY TO SUBMIT A COMPETING OFFER AFTER THE MERGER PACT WAS ANNOUNCED LATE LAST YEAR HE ADDED IPALCO'S BOARD REVIEWED THE PLAN AND DETERMINED THAT IPALCO COULD MAKE AN OFFER THAT WOULD BE MORE BENEFICIAL TO PSI'S SHAREHOLDERS IPALCO'S DIRECTORS CONCLUDED HE SAID THAT UNDER THE CIRCUMSTANCES THE APPROPRIATE COURSE OF ACTION WAS TO MAKE AN OFFER DIRECTLY TO PSI'S SHAREHOLDERS UNDERSCORING THE HOSTILE NATURE OF ITS BUYOUT EFFORT UNUSUAL FOR THE UTILITY INDUSTRY IPALCO DISCLOSED THAT IT YESTERDAY FILED A LAWSUIT THE COMPLAINT ASKS A FEDERAL COURT IN INDIANAPOLIS TO BLOCK THE PROPOSED MERGER WITH THE OHIO UTILITY BECAUSE THE TWO COMPANIES HAVE MADE FALSE AND MISLEADING STATEMENTS ABOUT THE PLAN'S BENEFITS AND BECAUSE THE MERGER ALLEGEDLY VIOLATES INDIANA LAW IPALCO ADDED THAT IT WILL ALSO OPPOSE THE CG&E/PSI MERGER PROPOSAL WHEN IT'S REVIEWED BY INDIANA REGULATORS AND IT SAID IT WILL NOMINATE A SLATE OF FIVE DIRECTORS WHEN PSI HOLDS ITS SHAREHOLDERS' MEETING SOON CG&E AND PSI HAVE TOUTED THEIR PLANNED MERGER AS PROMISING TO TRIM 750 MILLION IN COSTS DURING THE NEXT 10 YEARS THROUGH AVOIDING CONSTRUCTION COSTS AND PRODUCING OPERATING EFFICIENCIES SHAREHOLDERS HAVE YET TO APPROVE THAT PLAN BUT IPALCO SAID YESTERDAY THAT IF IT ACQUIRES PSI IT COULD MORE THAN DOUBLE THOSE PROMISED SAVINGS DURING THE SAME PERIOD AND THAT THE MERGER OF TWO INDIANA UTILITIES COULD BE COMPLETED WITH FEWER REGULATORY COMPLICATIONS AS WITH ANY COMBINATION IN THE HEAVILYREGULATED UTILITY INDUSTRY HOWEVER AN IPALCO/PSI LINK WOULD BE SUBJECT TO NUMEROUS REVIEWS PSI RESOURCES HEADQUARTERED IN THE NEARBY SUBURB OF PLAINFIELD IND IS THE PARENT OF THE FORMER PUBLIC SERVICE INDIANA THE STATE'S BIGGEST ELECTRIC UTILITY AND NOW KNOWN AS PSI ENERGY BOTH PSI AND CG&E SAID THEY WOULDN'T HAVE ANY COMMENT UNTIL IPALCO'S PROPOSAL HAD BEEN REVIEWED OFFER AWAITS CLEARANCE IPALCO SAID IT CAN'T FORMALLY LAUNCH ITS OFFER UNTIL A REGISTRATION STATEMENT IT FILED YESTERDAY WITH THE SECURITIES AND EXCHANGE COMMISSION BECOMES EFFECTIVE THE ACQUISITION WOULD BE SUBJECT TO APPROVAL FROM STATE AND FEDERAL REGULATORS UNDER TERMS OF THE OFFER IPALCO SAID PSI HOLDERS WOULD RECEIVE FOR EACH OF THEIR SHARES 2650 OF IPALCO STOCK SUBJECT TO REVISION IF THE VALUE OF IPALCO SHARES CHANGES SUBSTANTIALLY BEFORE THE DEAL IS COMPLETED IPALCO ADDED THAT IT WILL ALLOW PSI HOLDERS TO ELECT WHETHER TO RECEIVE SHARES OR CASH BUT THAT NO MORE THAN 20 OF THE TOTAL TRANSACTION WOULD BE PAYABLE IN CASH THE DISCLOSURE CAME AFTER YESTERDAY'S MARKET CLOSE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PSI SHARES CLOSED AT 2225 UNCHANGED IPALCO SHARES CLOSED AT 38375 OFF 375 CENTS 9303160001 930316 FOREIGN EXCHANGE KOREAN TENSIONS SPEED UP YEN'S SLIDE DOLLAR ENDS OFF AGAINST EUROPEAN UNITS GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SELLERS SKITTISH OVER INCREASING TENSIONS ON THE KOREAN PENINSULA ACCELERATED THE YEN'S SLIDE MONDAY AGAINST EUROPEAN CURRENCIES MEANWHILE THE DOLLAR ENDED MOSTLY LOWER AFTER SPENDING THE DAY CONFINED TO NARROW TRADING RANGES DEALERS SAID WIDESPREAD MARKET EXPECTATIONS OF A CUT IN GERMAN INTEREST RATES LATER THIS WEEK MUTED REACTION TO NEWS THAT GERMAN OFFICIALS AGREED TO A FISCALCONSOLIDATION PROGRAM OVER THE WEEKEND LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16630 MARKS DOWN FROM 16650 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11860 YEN UP FROM 11803 YEN STERLING WAS TRADING AT 14348 UP A BIT FROM 14340 ABOUT MIDDAY ON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16615 MARKS AND AT 11810 YEN GROWING TENSION BETWEEN NORTH AND SOUTH KOREA HAS MADE INVESTORS NERVOUS DEALERS SAID THOUGH SO FAR THE FACEOFF HASN'T TRIGGERED A FLIGHT FROM THE YEN NORTH KOREA ABRUPTLY WITHDREW FROM THE NUCLEAR NONPROLIFERATION TREATY LAST WEEK DENYING INTERNATIONAL INSPECTORS ACCESS TO SUSPECTED NUCLEARWEAPONS FACILITIES IN GENEVA MONDAY NORTH KOREA'S UNITED NATIONS AMBASSADOR SAID WAR BETWEEN THE US AND NORTH KOREA COULD BREAK OUT AT ANY MOMENT DEALERS SAID REPORTS OF HIS COMMENTS PUSHED THE DOLLAR THROUGH 11850 YEN ITS HIGHEST LEVEL SINCE MARCH 2 WHEN IT TOUCHED 11875 YEN JAPAN'S PROXIMITY MEANS THE YEN IS LIKELY TO SUFFER FROM ANY CONFLICT IN KOREA DEALERS SAID ALSO UNDERMINING THE YEN SAID JOHN LYMAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK IS THE CONTINUING POLITICAL CORRUPTION SCANDAL IN JAPAN 9303160078 930225 BIOTECHNOLOGY NEW WAY TO DEVELOP HIGHTECH DRUGS MONKEYS WITH DARWIN'S FAMED THEORY BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL BIOTECHNOLOGY HAS A NEW BUZZWORD EVOLUTION IN PRINCIPLE IT IS THE SAME PHENOMENON THAT CHARLES DARWIN WROTE ABOUT AFTER HIS VOYAGE ABOARD HMS BEAGLE BUT INSTEAD OF SURVIVAL OF THE FITTEST CREATURES IN A SPECIES THE NEW HUMANDIRECTED EVOLUTION INVOLVES SURVIVAL OF THE FITTEST MOLECULES FOR USE IN HIGHTECH DRUGS TESTTUBE EVOLUTION STARTS WITH A MOLECULE THAT DOES A SOMEWHAT USEFUL JOB BUT DOESN'T DO IT WELL ENOUGH YET FOR MEDICAL OR INDUSTRIAL PURPOSES MILLIONS OF VARIATIONS OF THE MOLECULE ARE CREATED AND SUBJECTED TO A TEST OF SURVIVAL IN THE TEST TUBE THOSE MOLECULES THAT SURVIVE BY DOING THE WANTED TASK A BIT BETTER ARE REPRODUCED BY THE MILLIONS AND AGAIN PUT TO A SURVIVAL TEST THE PROCEDURE IS REPEATED GENERATION AFTER GENERATION WITHIN A MATTER OF WEEKS A FEW MOLECULES EVOLVE THAT CAN CARRY OUT THE DESIRED TASK WITH UNPRECEDENTED EFFICIENCY THESE MOLECULES MIGHT HAVE TAKEN A HUMAN CHEMIST DECADES TO SYNTHESIZE OR NATURE MILLIONS OF YEARS TO EVOLVE IN THE LAST SEVERAL MONTHS A HALF DOZEN NEW BIOTECHNOLOGY COMPANIES HAVE STARTED UP TO EXPLOIT WHAT SOME SCIENTISTS ARE CALLING DIRECTED OR APPLIED MOLECULAR EVOLUTION ONE SEATTLEBASED STARTUP COMPANY IS EVEN CALLING ITSELF DARWIN MOLECULAR TECHNOLOGIES INC BECAUSE WE BELIEVE THAT THE PRINCIPLES OF EVOLUTION AT THE MOLECULAR LEVEL WILL SPEED UP THE DEVELOPMENT OF NEW DRUGS SAYS ITS CHIEF EXECUTIVE OFFICER MARK PEARSON A MOLECULAR BIOLOGIST FORMERLY WITH DU PONT MERCK PHARMACEUTICAL CO IT'S A WHOLE NEW WAY OF DOING CHEMICAL SYNTHESIS GERALD F JOYCE A MOLECULAR BIOLOGIST AT THE SCRIPPS RESEARCH INSTITUTE IN LA JOLLA CALIF TOLD A SEMINAR SPONSORED LAST FALL BY THE COUNCIL FOR THE ADVANCEMENT OF SCIENCE WRITING AND THE UNIVERSITY OF CALIFORNIA SAN DIEGO NEW GENES COULD EVEN BE EVOLVED FOR INSERTION INTO CELLS TO TURN OFF DELETERIOUS GENES OR TURN ON BENEFICIAL GENES SPECULATES ONE SCIENTIST AND RESEARCHERS ADD APPLIED MOLECULAR EVOLUTION COULD LEAD TO POWERFUL NEW ENZYMES AND CATALYSTS FOR INDUSTRIAL PROCESSES MOLECULAR EVOLUTION IS FAR TOO NEW TO HAVE YIELDED ANY SPECTACULAR NEW MEDICINES YET AND THE SMALL COMPANIES PLUNGING INTO MOLECULAR EVOLUTION ARE RELUCTANT TO REVEAL EXACTLY WHAT DRUGS THEY ARE SEEKING BUT A NEW DRUG THAT PREVENTS BLOOD CLOTTING NOW BEING TESTED IN ANIMALS OFFERS AN EXAMPLE OF THE POWER OF THE NEW TECHNIQUE THE ANTICLOTTING DRUG WAS EVOLVED BY GILEAD SCIENCES INC IN FOSTER CITY CALIF AND CONSISTS OF A FRAGMENT OF DNA THE STUFF GENES ARE MADE OF ORDINARILY DNA A KIND OF MOLECULAR NECKLACE OF SMALL BEADS CALLED BASES SERVES ONLY AS A PASSIVE BLUEPRINT TO GUIDE A CELL IN MAKING PROTEINS BUT JOHN J TOOLE AND HIS COLLEAGUES AT GILEAD DECIDED TO MAKE A DNA THAT ACTIVELY SEEKS OUT AND STICKS TO THROMBIN A CHEMICAL IN THE BODY THAT TRIGGERS BLOOD CLOTTING THE GOAL WAS A PIECE OF DNA THAT WOULD NEUTRALIZE THROMBIN AND PREVENT BLOOD CLOTS SOMETHING IMPORTANT IN TREATING HEART DISEASE TO BEGIN THE EXPERIMENT THEY CREATED 10 TRILLION VARIATIONS OF THE DNA ALL WERE TOSSED INTO A TEST TUBE WITH MOLECULES OF THROMBIN A CHEMICAL BATH THEN WASHED AWAY ALL THE DNA FRAGMENTS THAT FAILED TO LATCH ON TO A MOLECULE OF THROMBIN THIS LEFT ABOUT 001 OF THE DNA FRAGMENTS THAT DID STICK TO THROMBIN THESE BOUND FRAGMENTS WERE BIOCHEMICALLY STRIPPED OFF AND COPIED BY THE MILLIONS THE RESEARCHERS TOSSED THE NEW COPIES INTO THE TEST TUBE WITH THROMBIN AND REPEATED THE PROCESS BY THE FIFTH GENERATION 40 OF THE DNA FRAGMENTS WERE BINDING TO THROMBIN MOLECULES MORE IMPORTANTLY WHEN SCIENTISTS ANALYZED THE BOUND DNA FRAGMENTS THEY FOUND ALMOST ALL CONTAINED THE SAME SHORT SEQUENCE OF BASES OR DNA BUILDING BLOCKS THIS SHORT SEQUENCE HAS BECOME THE KEYSTONE OF SOME NEW ANTICLOTTING DRUGS IN PRECLINICAL TESTING IN ANIMALS FOR PREVENTING CLOTS DURING OPENHEART SURGERY AND OTHER USES SAYS GILEAD'S CHIEF EXECUTIVE OFFICER MICHAEL RIORDAN THE FEAT CONTRASTS SHARPLY WITH THE TRADITIONAL APPROACH TO DRUG DISCOVERY DR RIORDAN SAYS TRADITIONALLY DRUGCOMPANY CHEMISTS TEDIOUSLY TEST SUBSTANCES THAT ALREADY EXIST IN NATURE OR ON CHEMICAL LABORATORY SHELVES THE ENTIRE US DRUG INDUSTRY SCREENS ONLY 10000 TO 20000 SUBSTANCES A YEAR HOPING TO FIND A FEW USEFUL DRUGS DR RIORDAN NOTES GILEAD'S SCREENING OF 10 TRILLION DNA MOLECULES TOOK ONLY A MATTER OF WEEKS ONE OF THE FIRST EVOLUTIONBASED COMPANIES TO SPRING UP NEXAGEN INC IN BOULDER COLO HAS RAISED 17 MILLION IN VENTURE CAPITAL SINCE IT WAS FORMED IN MARCH 1991 SAYS ITS PRESIDENT AND CHIEF EXECUTIVE PATRICK J MAHAFFY A FINANCIER WHO CAME TO NEXAGEN FROM WARBURG PINCUS INVESTORS LP THE VENTURE CAPITALISTS WHO SEEDED THE COMPANY NEXAGEN WAS FORMED TO EXPLOIT A TESTTUBE EVOLUTION TECHNIQUE DEVISED BY ITS FOUNDER MOLECULAR BIOLOGIST LARRY GOLD OF THE UNIVERSITY OF COLORADO GILEAD SCIENTISTS USED DR GOLD'S TECHNIQUE TO EVOLVE THEIR ANTICLOTTING DNAS NEXAGEN HOWEVER IS USING IT TO EVOLVE DRUGS FROM A SISTER GENETIC MOLECULE RNA RNA LIKE DNA IS A LONG NECKLACE MADE UP OF FOUR KINDS OF BASES SO THE RNA MOLECULE CAN ALSO BE MUTATED INTO AN ALMOST LIMITLESS NUMBER OF VARIANTS DR GOLD SAYS THIS LETS NEXAGEN RESEARCHERS SEARCH FOR SEVERAL DRUGS SIMULTANEOUSLY YOU CAN TAKE ONE TEST TUBE OF 10 TO THE 18TH FRAGMENTS AND DIVIDE IT INTO 10 TEST TUBES EACH WITH ITS OWN TARGET DR GOLD SAYS THE TARGETS THE NEXAGEN RESEARCHERS ARE USING ARE PROTEINS OF MEDICAL INTEREST THEY ARE LOOKING FOR RNA FRAGMENTS THAT WILL GRAB HOLD AND NEUTRALIZE THESE PROTEINS SO FAR THEY HAVE DISCLOSED THAT THEY HAVE FOUND ONE RNA FRAGMENT THAT IN THE TEST TUBE GLUES ITSELF TO A PROTEIN THAT THE AIDS VIRUS USES TO REPRODUCE ITSELF THUS BLOCKING THE VIRUS'S ABILITY TO PROLIFERATE THE TRICK IS TO FIGURE HOW TO USE THIS RNA FRAGMENT IN AIDS PATIENTS THEY HAVE FOUND RNA VARIANTS THAT GRAB HOLD OF NERVE GROWTH FACTOR A PROTEIN THAT MAY BE INVOLVED IN SOME NERVE DISEASES AND THEY HAVE FOUND AN RNA FRAGMENT THAT BINDS TO THROMBIN THE CLOTTING PROTEIN BUT THE BIGGEST DISCOVERY SAY THE NEXAGEN SCIENTISTS IS THAT VARIATIONS OF RNA CAN BE CREATED THAT CAN BIND TO ALMOST ANY PROTEIN NATURE HAS EVER MADE AND PERHAPS ANY CHEMICAL MOLECULE IN TUCSON ARIZ ANOTHER NEW COMPANY SELECTIDE INC FOUNDED BY A GROUP OF UNIVERSITY OF ARIZONA BIOLOGISTS IS USING TESTTUBE EVOLUTION TO CREATE FRAGMENTS OF PROTEINS CALLED PEPTIDES THAT CONSIST OF ONLY FIVE AMINO ACID BEADS SAYS BRUCE SELIGMANN VICE PRESIDENT OF RESEARCH THE RESEARCHERS CAN SIFT THROUGH A LIBRARY OF 32 MILLION SUCH PEPTIDE FRAGMENTS IN A MATTER OF HOURS OR A FEW DAYS FOR PEPTIDES THAT BIND TO SELECTED TARGETS SUCH AS PROTEINS INVOLVED IN ARTHRITIS THESE FRAGMENTS THEN BECOME THE STARTING POINTS TOWARD EVOLVING NEW PEPTIDES THAT IT'S HOPED WILL WORK EVEN BETTER AGAINST THE TARGET SOME ESTABLISHED BIOTECH COMPANIES ARE ALSO PLUNGING INTO TESTTUBE EVOLUTION ISIS PHARMACEUTICALS INC IN CARLSBAD CALIF HAS LAUNCHED AN EVOLUTIONTYPE PROJECT IT CALLS OSIRIS TO SCREEN MILLIONS OF SYNTHETIC VERSIONS OF RNA AND DNA FOR POTENTIAL DRUGS ONE OF THE MOST AMBITIOUS EFFORTS HOWEVER IS THAT OF DARWIN MOLECULAR TECHNOLOGIES IN SEATTLE DARWIN WANTS TO ANALYZE THE HUGE VOLUME OF DATA ON DNA BASE SEQUENCES THAT IS FLOWING FROM THE HUMAN GENOME PROJECT THE COMPANY WANTS TO BE THE FIRST TO FIND GENES THAT PRODUCE PROTEINS OF MEDICAL IMPORTANCE ONCE A PROTEIN OF MEDICAL IMPORT IS FOUND DARWIN SCIENTISTS HOPE TO USE TESTTUBE EVOLUTION TO EVOLVE NEW DRUGS BUT UNLIKE OTHERS THEY WILL TRY TO EVOLVE SMALL ORGANIC MOLECULES INSTEAD OF COMPLEX MOLECULES LIKE DNA AND RNA TO BLOCK OR ENHANCE THE ACTION OF THESE PROTEINS SAYS DR PEARSON DARWIN'S CHIEF EXECUTIVE TESTTUBE EVOLUTION EXPERIMENTS ULTIMATELY MAY SOLVE ONE OF THE GREAT MYSTERIES THE ORIGIN OF LIFE SUGGESTS DR JOYCE AT THE SCRIPPS INSTITUTE HE AND HIS COLLEAGUES ARE NOW PUTTING RNA THROUGH TESTTUBE EVOLUTION TO SEE IF THEY CAN MOVE BACKWARD IN TIME TO THE ORIGINAL VERSIONS OF RNA THAT FORMED THE FIRST PROTEINS A STEP THAT HAD TO PRECEDE THE FORMATION OF LIVING CELLS GILEAD SCIENCES INC RESEARCHERS USED THEIR OWN TECHNIQUE TO EVOLVE IN THE TEST TUBE A DNA DRUG TO BLOCK THE FORMATION OF BLOOD CLOTS ACCORDING TO GILEAD PRESIDENT MICHAEL RIORDAN A FEB 25 ARTICLE STATED THAT GILEAD SCIENTISTS HAD USED A MOLECULAR EVOLUTION TECHNIQUE DEVELOPED BY BIOLOGIST LARRY GOLD OF THE UNIVERSITY OF COLORADO 9303150179 930315 CRUTCHFIELD WAS PAID 31 MILLION IN 1992 BY FIRST UNION CORP CHARLOTTE NC EDWARD E CRUTCHFIELD JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FIRST UNION CORP WAS PAID 31 MILLION IN ANNUAL AND LONGTERM COMPENSATION FOR 1992 ACCORDING TO THE COMPANY'S PROXY STATEMENT MR CRUTCHFIELD 51 YEARS OLD RECEIVED A BASE SALARY OF 750000 AND A MATCHING 750000 BONUS THE MAXIMUM ALLOWED UNDER COMPANY GUIDELINES BASED ON THE BANK HOLDING COMPANY ACHIEVING ITS PROFITABILITY GOAL FOR 1992 HE ALSO RECEIVED A 1090600 RESTRICTED STOCK AWARD AND REAPED 478466 IN GAINS FROM EXERCISING STOCK OPTIONS THE PROXY STATEMENT SAID THE EXECUTIVE ALSO RECEIVED STOCK OPTIONS VALUED AT 378656 FOR 1992 ACCORDING TO THE FILING 9303150178 930315 CZECH FIRM TAPS HOME MARKET IN BOTTLED WATER HBSW IS LATEST CATERING TO PUBLIC AWARENESS OF POLLUTION HAZARDS BY AMY BARRETT SPECIAL TO THE WALL STREET JOURNAL MISTY GREEN SOUTH BOHEMIA RICH WITH RARE SPECIES OF BIRDS AND PLANTS IS ONE OF FEW BRIGHT SPOTS IN THE BLEAK EAST EUROPEAN LANDSCAPE OF DEVASTATING POLLUTION IT IS ALSO THE SOURCE OF A STUNNINGLY SUCCESSFUL NEW PRODUCT WHOSE POPULARITY LARGELY STEMS FROM THE TERRIBLE STATE OF THE ENVIRONMENT PURE CRYSTALLINE SPRING WATER CZECHS HAVE LONG BEEN AWARE THAT THEIR DRINKING WATER CONTAINS UNACCEPTABLE LEVELS OF DANGEROUS CHEMICALS PARTICULARLY NITRATES AND HEAVY METALS BUT LACKED ALTERNATIVES IMPORTED BOTTLED WATERS BEGAN TO APPEAR ON PRAGUE SHOP SHELVES LAST YEAR BUT AT PRICES FEW COULD AFFORD THEN CAME HBSW'S DOBRA VODA PUMPED UP FROM A VAST UNDERGROUND RESERVOIR FIVE KILOMETERS FROM THE AUSTRIAN BORDER AND PACKAGED ON THE SPOT IN ENVIRONMENTFRIENDLY PET PLASTIC BOTTLES THE WATER IS SHIPPED ALL OVER THE COUNTRY IN JUST SIX MONTHS DOBRA VODA WHOSE NAME MEANS SIMPLY GOOD WATER HAS TAKEN A 70 SHARE OF THE DOMESTIC BOTTLED WATER MARKET IT ISN'T THAT LARGE A QUANTITY AT PRESENT THE MARKET IS CONSUMING ONLY 130 MILLION LITERS A YEAR BUT WE EXPECT IT TO REACH 600 MILLION TO 700 MILLION LITERS WITHIN A COUPLE OF YEARS AND WHEN THE DEMAND GROWS WE'LL BE ABLE TO COVER IT SAYS VACLAV BENEDIKT HBSW'S DIRECTOR HIS COMPANY IS ONE OF A GROWING NUMBER OF CONCERNS CATERING TO NEW PUBLIC AWARENESS OF THE HEALTH HAZARDS OF OFFTHESCALE AIR WATER AND SOIL POLLUTION AND A DIET HEAVY IN FATS AND SALT AIR AND WATER FILTERS CLEAN DETERGENTS AND HEALTH FOODS LIKE MUESLI AND SOYBASED MEAT SUBSTITUTES HAVE ALL APPEARED ON THE MARKET RECENTLY WHILE MOST ARE IMPORTS OR JOINT VENTURES WITH A FOREIGN PARTNER DOBRA VODA'S PRODUCER HBSW IS 100 CZECH THOUGH PARTIALLY FINANCED BY FOREIGN CREDIT ODDLY IT WAS THE FORMER COMMUNIST GOVERNMENT THAT FIRST HATCHED THE IDEA IN 1988 EVERYONE KNEW OUR WATER WAS POLLUTED BUT 10 YEARS AGO IF YOU SAID SO YOU WENT TO PRISON THEN IT GOT SO BAD REQUIRING MORE AND MORE COMPLICATED TREATMENT THAT EVEN THE GOVERNMENT ADMITTED IT WAS NECESSARY TO FIND MORE SOURCES OF DRINKING WATER MR BENEDIKT SAYS THE BEST SOURCE STATE EXPERTS FOUND 260 METERS BELOW SOUTHERN BOHEMIA'S BOGS AND MARSHES IS ONE OF ONLY TWO IN CZECH REPUBLIC THAT FIT THE CRITERIA OF SIZE AND SAFETY FROM ACCIDENTAL POLLUTION AND THAT MEET THE STRICTEST PURITY STANDARDS INCLUDING THOSE OF THE WORLD HEALTH ORGANIZATION AND THE EUROPEAN COMMUNITY BUT AS THE PROJECT WAS BEING DEVELOPED THE COMMUNISTS FELL IN 1990 THE NEW GOVERNMENT SAID THE STATE COULDN'T FINANCE THE PROJECT AND WOULD PRIVATIZE IT THROUGH A TENDER HBSW IS THE FIVEMAN TEAM MR BENEDIKT PUT TOGETHER FOR THE BID INCLUDING AN EXPERT FROM THE STATE WATER AUTHORITY AN ENVIRONMENTAL LAWYER AND A LAND AND NUTRITION SPECIALIST FROM THE STATE FARM IN SOUTHERN BOHEMIA NEAR THE SOURCE HE AND ONE OTHER MAN ARE FROM METROSTAV THE STATE CONSTRUCTION COMPANY THAT BUILT THE PRAGUE SUBWAY MR BENEDIKT SAYS AT FIRST WE WANTED A FOREIGN PARTNER EVERYONE TALKED TO US PEPSI COCACOLA AUSTRIAN AND ITALIAN FIRMS AND ALSO BANKS LIKE CREDIT SUISSE FIRST BOSTON BUT THEIR CONDITIONS WERE ALL THE SAME WE PUT UP THE MONEY YOU PUT UP THE KNOWHOW WE GET 95 YOU GET 5' THEY ALL WANTED TO OWN IT INSTEAD HE AND HIS PARTNERS DECIDED TO FIND CREDIT IT WAS THE EARLY STAGE OF CAPITALISM HERE HE REFLECTS AS IF RECALLING A DISTANT AGE WE WANTED TO DO IT OURSELVES BY NOVEMBER 1991 AFTER TYING UP LEGAL AND FINANCIAL LOOSE ENDS THEY BEGAN BUILDING NINE MONTHS LATER THE PLANT WAS PRODUCING HALF THE TOTAL STARTUP COST OF 15 MILLION WAS PROVIDED BY DOMESTIC BANKS WITH GUARANTEES FROM THE ENVIRONMENT MINISTRY THE REST WAS GRANTED BY THE PROVIDER OF THE PRODUCTION EQUIPMENT BELGIAN COMPANY LEGENDRE WHICH NEGOTIATED A LOAN ON HBSW'S BEHALF FROM BANQUE INDOSUEZ THE FINANCING AND BUILDING WENT SMOOTHLY THE HARD PART WAS SALES SOCIALISM TAUGHT US HOW TO MAKE THINGS BUT NOT HOW TO SELL THEM MR BENEDIKT ADMITS WHOLESALE DISTRIBUTION FOR MORE THAN A LIMITED TERRITORY OR QUANTITY IS STILL A NEW CONCEPT SO THAT A COMPANY WANTING TO REACH ITS CONSUMERS THROUGHOUT THE REPUBLIC HAS TO PATCH TOGETHER ITS OWN NETWORK HBSW FORMED ITS OWN TRANSPORT COMPANY TO DELIVER TO 15 WHOLESALERS WHO THEN SELL TO 300 INTERMEDIATE BUYERS THESE THEN DISTRIBUTE THE WATER TO RETAILERS THE OTHER QUESTION WAS PRICE THE COMPANY WANTED THE WATER TO BE AFFORDABLE TO EVERYONE AS THE PROJECT ORIGINALLY WAS CONCEIVED AS A PUBLIC SERVICE BUT IT WAS NOW A PRIVATE FIRM WITH DEBTS TO PAY THEY SETTLED ON A PRICE THAT WOULD ALLOW THEM TO COVER COSTS AND PAY BACK CREDITS WITHIN FIVE YEARS AROUND 10 CROWNS OR 35 CENTS PER 15LITER BOTTLE THIS IS ABOUT HALF THE PRICE OF IMPORTED BOTTLED WATERS SUCH AS VITTEL OR EVIAN CONSUMERS HAVE BEEN REMARKABLY QUICK TO ACCEPT THE IDEA OF PAYING FOR DRINKING WATER DESPITE THE DIFFICULTY OF MAKING ENDS MEET IN TOUGH NEW ECONOMIC CONDITIONS MANY PARTICULARLY MOTHERS OF SMALL CHILDREN WHOSE HEALTH IS MOST AT RISK FROM THE HIGH NITRATE AND CHEMICAL LEVELS IN MUNICIPAL WATER SUPPLIES ARE GRATEFUL IT'S EXPENSIVE BUT AT LEAST IT'S SOMETHING I CAN DO FOR MY CHILD IF I CAN'T CHANGE THE SMOG OR THE UNHEALTHY FOOD MY SON EATS AT SCHOOL AT LEAST I CAN MAKE SURE HE HAS CLEAN WATER TO DRINK SAYS EMILIE BROZOVA THIS KIND OF THINKING HAS MADE HBSW'S MARKETING EFFORTS EASIER WHILE FRENCH BOTTLEDWATER MAKERS POUR MILLIONS OF FRANCS INTO FLASHY AD CAMPAIGNS TO CREATE A HIP SEXY IMAGE TO DISTINGUISH THEIR WATER FROM DOZENS OF COMPETITORS HBSW STICKS WITH A SIMPLE DIRECT APPEAL GOOD WATER FOR YOUR HEALTHY LIVING MR BENEDIKT SAYS IN THE WEST IMAGE IS MORE IMPORTANT THAN QUALITY CONSUMERS DON'T ALWAYS HAVE THE BEST INFORMATION 9303150177 930315 INTERNATIONAL SPANISH DOMESTIC PRODUCT MADRID SPAIN'S GROSS DOMESTIC PRODUCT OR GDP SHOWED NEGATIVE GROWTH OF 02 IN THE FOURTH QUARTER OF 1992 COMPARED WITH THE FOURTH QUARTER OF 1991 THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE A DEPARTMENT OF THE FINANCE MINISTRY SAID THAT THE AVERAGE GDP GROWTH IN 1992 WAS 1 DOWN FROM 23 IN 1991 9303150176 930315 CANADIAN JOBLESS RATE DROPS OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 108 IN FEBRUARY FROM 11 IN JANUARY REFLECTING THE COUNTRY'S SLOW ECONOMIC RECOVERY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE SEASONALLY ADJUSTED FEBRUARY FIGURE WAS THE LOWEST JOBLESS PERCENTAGE SINCE FEBRUARY 1992 WHEN THE RATE WAS 106 OF THE LABOR FORCE EMPLOYMENT ROSE SLIGHTLY IN FEBRUARY FOR THE SEVENTH CONSECUTIVE MONTH 9303150175 930315 KERR GROUP SETS STOCK BUYBACK LOS ANGELES KERR GROUP INC SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 250000 COMMON SHARES THE MAKER OF PACKAGING AND HOMECANNING PRODUCTS SAID THE STOCK WILL BE PURCHASED THROUGH OPENMARKET TRANSACTIONS MADE FROM TIME TO TIME DEPENDING UPON AMONG OTHER THINGS THE PRICE AND AVAILABILITY OF ITS COMMON STOCK KERR HAS ABOUT 37 MILLION COMMON SHARES OUTSTANDING 9303150174 930315 INTERNATIONAL CZECH JOBLESS RATE FALLS FRANKFURT GERMANY THE UNEMPLOYMENT RATE IN THE CZECH REPUBLIC DROPPED TO 297 OF THE WORK FORCE IN FEBRUARY FROM 301 IN JANUARY THE NEWS AGENCY CTK REPORTED CITING THE CZECH MINISTRY OF LABOR AND SOCIAL AFFAIRS CTK REPORTED THAT THE NUMBER OF JOBLESS REGISTERED IN THE COUNTRY STOOD AT 156176 IN FEBRUARY 9303150173 930315 ITALIAN GOVERNMENT ISSUE TRADES MILAN ITALIAN SECURITIES WATCHDOG AGENCY CONSOB SAID TRADING HOURS FOR GOVERNMENT ISSUES WILL BE EXTENDED BY A HALF HOUR STARTING TODAY CONSOB SAID TRADING WILL START AT 830 AM INSTEAD OF 900 AM A SPOKESMAN AT THE MILAN STOCK EXCHANGE SAID THE OPENING WAS MOVED FORWARD AS A RESULT OF HEAVY VOLUME 9303150172 930315 WHO'S NEWS WELDOTRON CORP WELDOTRON CORP PISCATAWAY NJ THIS MAKER OF PACKAGING MACHINERY SAID DAVID E FRIEDRICH 52 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS GIVEN THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS FOUNDER MARTIN SIEGEL 65 WHO WILL REMAIN CHAIRMAN AND CONTINUE TO SUPPORT MANAGEMENT ON PRODUCT DEVELOPMENT AND LONGTERM PLANNING 9303150171 930315 BC GAS REORGANIZATION VANCOUVER BRITISH COLUMBIA BC GAS INC SAID ITS BOARD APPROVED A PREVIOUSLY REPORTED CORPORATE REORGANIZATION TO SEPARATE THE REGULATED AND NONREGULATED BUSINESS OPERATIONS OF THE COMPANY INTO TWO SEPARATELY MANAGED DIVISIONS THE PROPOSAL STILL REQUIRES CHANGES TO PROVINCIAL LEGISLATION AND COURT REGULATORY AND SHAREHOLDER APPROVALS THE GAS UTILITY SAID THE REORGANIZATION COULD TAKE EFFECT AS EARLY AS JULY 1 9303150170 930315 CORRECTIONS & AMPLIFICATIONS TUESDAY MORNING CORP POSTED NET INCOME OF 82 MILLION OR 89 CENTS A SHARE FOR 1992 COMPARED WITH A RESTATED 52 MILLION OR 70 CENTS A SHARE A YEAR EARLIER THE COMPANY ALSO RECORDED A RESTATED PROFIT OF 57 MILLION OR 74 CENTS A SHARE FOR THE 1991 FOURTH QUARTER THE NUMBERS WERE MISSTATED IN AN ARTICLE WEDNESDAY THE COMPANY ALSO SAID IT PLANS TO ADD 40 NEW STORES IN 1993 EXPANDING THE CHAIN BY ABOUT 25 A COMPANY SPOKESMAN MISSTATED THE EXPANSION PLANS 9303150169 930315 TECHNOLOGY & HEALTH INFORMATION AGE MORE MARKET RESEARCHERS SWEAR BY PCS BY WILLIAM M BULKELEY ON A SCALE OF ZERO TO 10 WITH 10 BEING THE HIGHEST COMPUTERS ARE GETTING EIGHTS OR BETTER FROM MARKET RESEARCHERS WHO USE THEM IN THEIR WORK WE TALK TO 50000 TO 70000 OF OUR CUSTOMERS EVERY YEAR AND SINCE WE GOT COMPUTERS WE SAVE A POT FULL OF MONEY AS WELL AS A FEW FORESTS SAYS STEVEN UNDERWOOD SENIOR RESEARCH ANALYST AT MERVYN'S DEPARTMENT STORES A UNIT OF DAYTON HUDSON CORP INSTEAD OF CLIPBOARDS AND MULTIPART FORMS INTERVIEWERS CARRY PENBASED COMPUTERS ON THEIR ARMS QUERY CUSTOMERS AND CHECK OFF ANSWERS ON THE SCREEN THEN RESEARCHERS CAN TOTE UP THE DATA THE NEXT DAY WHEN SHOPPERS IN SOME TEXAS STORES SAID THEY HAD STARTED LISTENING TO A RADIO STATION THAT HAD RECENTLY SWITCHED TO COUNTRYANDWESTERN MUSIC MERVYN'S WAS ABLE TO BUY CHRISTMAS SEASON AD TIME ON THE STATION IN THE PAST WHEN AN OUTSIDE FIRM TOOK SIX WEEKS TO TABULATE DATA MERVYN'S WOULDN'T HAVE KNOWN ITS CUSTOMERS CHANGED CHANNELS UNTIL AFTER CHRISTMAS PC WORLD MAGAZINE SAN FRANCISCO LEARNS WHAT READERS THINK OF EACH MONTH'S ARTICLES A FEW DAYS AFTER MAILING THE READERS CAN CHECK OFF BOXES ON A SPECIAL FORM IN THE MAGAZINE AND FAX IT TO A COMPUTER THE COMPUTER USES TECHNOLOGY DEVELOPED BY CARDIFF SOFTWARE SOLANA BEACH CALIF TO READ THE FORMS IT THEN PROVIDES SCORES ON WHICH ARTICLES WERE LIKED BEST AND LEAST COMPARED WITH PHONE SURVEYS IT'S A QUICKER CHEAPER WAY TO GET LARGER AMOUNTS OF DATA SAYS THOMAS GEWECKE PC WORLD RESEARCH MANAGER TABULATION COST IS BASICALLY ZERO AS COMPUTERS GET CHEAPER AND MORE UBIQUITOUS THEY ARE CHANGING THE ROLE OF MARKET RESEARCH BECAUSE ANSWERS COME SO MUCH FASTER SOME MARKETERS CHANGE PLANS IN MIDSTREAM KATHLEEN MACDONNELL VICE PRESIDENT PREPARED FOODS FOR CAMPBELL SOUP CO HAS USED COMPUTER ADVICE IN DEVELOPING NEW FLAVORS OF PREGO SPAGHETTI SAUCE AND OTHER PRODUCTS IF YOU GO WITH A CONCEPT AND FIND THE CONSUMER ISN'T RESPONDING WELL YOU HAVE THE ABILITY TO CHANGE THEN AND NOT HAVE TO GO BACK TO THE DRAWING BOARD IT MAKES FOR A MUCH SPEEDIER PROCESS SHE SAYS STILL EVEN ENTHUSIASTS DON'T THROW THEIR FATE ENTIRELY TO ELECTRONICS JAMES ANDRADE A RESEARCHER AND MATHEMATICIAN WITH KRAFTGENERAL FOODS INC A UNIT OF PHILIP MORRIS COS SAYS COMPUTER ANALYSIS OF A SMALL SAMPLE OF TESTERS IS PRETTY PREDICTIVE BUT YOU NEVER WANT TO SKIP GOING TO TEST MARKETS MR GEWECKE OF PC WORLD CONTINUES TO DO TELEPHONE SURVEYS BECAUSE HE ASSUMES THAT PEOPLE WHO FAX BACK RESPONSES AREN'T AS RANDOM AS THE WHOLE PC WORLD AUDIENCE NEVERTHELESS COMPUTER TECHNOLOGY IS LIKELY TO BE APPLIED MORE WIDELY IN MARKET RESEARCH WE WANT TO PUT CONSUMERS INTO THE DESIGN OF PRODUCTS EARLY ON BY PRESENTING WORDS PICTURES AND VIDEOS AND OBTAINING THEIR REACTIONS SAYS HOWARD MOSKOWITZ PRESIDENT OF MOSKOWITZ JACOBS INC A VALHALLA NY MARKETING CONSULTANT MR MOSKOWITZ DEVELOPED A COMPUTER PROGRAM CALLED IDEAMAP THAT HE USES TO HELP AD AGENCIES AND CONSUMER GOODS FIRMS INCLUDING CAMPBELL AND KRAFT IN DESIGNING PRODUCTS COMPLEX STATISTICAL MEASURES ALSO ARE NOW AVAILABLE ON PCS ONE METHOD CONJOINT ANALYSIS ATTEMPTS TO MEASURE CONSUMER TRADEOFFS BETWEEN PRICE AND QUALITY IN CHOOSING A PRODUCT THE IDEAL PRODUCT WOULD BE A FREE MERCEDES SAYS JOSEPH CURRY PRESIDENT OF SAWTOOTH SOFTWARE INC SUN VALLEY IDAHO WHICH MAKES A 3000 CONJOINT PROGRAM CONJOINT LETS YOU SEE WHAT TRADEOFFS PEOPLE WILL MAKE IT USED TO TAKE A TRAINED STATISTICIAN NOW THE COMPUTER IS CALCULATING WHILE IT'S INTERVIEWING SOMEONE DESIGNING EACH SUCCESSIVE QUESTION BASED ON THE PREVIOUS ANSWER SAYS JOHN FIEDLER PRESIDENT OF POPULUS INC A BOISE IDAHO MARKET RESEARCHER WHO USES THE SAWTOOTH PROGRAM IT'S AS CLOSE TO ARTIFICIAL INTELLIGENCE AS ANYTHING IN MARKET RESEARCH IDEAMAP USES STATISTICAL CONCEPTS SUCH AS OPTIMIZATION AND VARIABLEREGRESSION ANALYSIS TO FIND CONSUMERS' HOT BUTTONS ONE ADVANTAGE OF THE TECHNIQUE IS THAT IT WILL REVEAL IF TWO VARIETIES WOULD SELL BETTER THAN A SINGLE PRODUCT THAT AVERAGES THE DIFFERENCES MR MOSKOWITZ SAYS THAT HIS TECHNIQUE HELPED CAMPBELL DEVELOP VLASIC PICKLES' SUCCESSFUL STRATEGY OF FEATURING LINES OF BOTH ZESTY AND REGULAR PICKLES BECAUSE SOME PEOPLE LIKE STRONG FLAVORS AND SOME LIKE WEAK FLAVORS THE TECHNIQUE ALSO CUTS THROUGH THE DIFFERENCE BETWEEN WHAT CUSTOMERS SAY AND WHAT THEY DO MR MOSKOWITZ SAYS THAT EVEN THOUGH THEY SAY THEY LOVE LIGHT' THEIR REACTIONS TO PACKAGES WITH THAT WORD MAY TURN OUT TO BE LESS FAVORABLE MR ANDRADE OF KRAFT SAYS WE LEARNED THAT NOT ALL HEALTH MESSAGES ARE THE SAME AFTER USING IDEAMAP HE DECLINES TO DISCUSS WHAT PRODUCTS WERE EVALUATED OTHER RESEARCHERS SAY THE PC BECOMES MOST VALUABLE WHEN IT SERVES AS THE INTERVIEWER RATHER THAN AN AID TO A HUMAN RESEARCHER WILLIAM MCLAUCHLAN A CINCINNATI MARKET RESEARCHER SAYS THAT IN MALLBASED INTERVIEWING CENTERS THAT USE PCS PEOPLE ARE WILLING TO DIVULGE MORE PRIVATE INFORMATION FACE TO FACE IF YOU ASK THEIR INCOME THEY'LL SAY NONE OF YOUR BUSINESS' ON THE COMPUTER IT'S AN ANONYMOUS TRANSACTION FOR BUSY PEOPLE SUCH AS DESIGN ENGINEERS PURCHASING AGENTS AND DOCTORS MR MCLAUCHLAN SENDS QUESTIONNAIRES ON DISKS DEVELOPED BY SAWTOOTH COOPERATION RATES ARE HIGHER THAN FOR PENCIL AND PAPER HE SAYS DOCTORS WILL ANSWER QUESTIONS ON A DISKETTE IN PART BECAUSE THEY CAN'T TELL HOW LONG THE QUESTIONNAIRE WILL BE AND MANY PEOPLE WHO IGNORE PAPER WILL WILLINGLY USE ELECTRONIC DEVICES WILLIAM HOFFMAN PRESIDENT OF OBJECT WORLD CORP A FRAMINGHAM MASS COMPANY THAT PUTS ON SHOWS FOR COMPUTER PROGRAMMERS SURVEYED ATTENDEES AT A RECENT SHOW IN BOSTON USING FEEDBACK CLIPBOARD A SPECIAL ELECTRONIC BOX WITH A SMALL SCREEN AND 12 BUTTONS BEING DEVELOPED BY FEEDBACK MARKETING SERVICES CORP WELLESLEY MASS IT LOOKS LIKE A PHONE FOR OLD FOLKS WE WERE CONCERNED WHETHER OUR ATTENDEES WOULD FIND IT DEMEANING MR HOFFMAN SAYS BUT WE HAD 423 FOLKS OUT OF 1600 ATTENDEES TAKE THE SURVEY AND I HAD DATA THE NEXT DAY IT WAS JUST PHENOMENAL GETTING THE RESULTS SO FAST HELPED IN PLANNING A JUNE SHOW IN SAN FRANCISCO 9303150168 930315 INTERNATIONAL SPANISH UNEMPLOYMENT RISES MADRID THE NUMBER OF PEOPLE REGISTERED AS UNEMPLOYED WITH SPAIN'S NATIONAL EMPLOYMENT INSTITUTE ROSE TO 163 OF THE WORK FORCE IN FEBRUARY FROM 159 IN JANUARY THE LABOR MINISTRY SAID 9303150167 930315 INTERNATIONAL JAPANESE WHOLESALE PRICES TOKYO JAPAN'S OVERALL WHOLESALE PRICES IN FEBRUARY FELL 04 FROM THE PRECEDING MONTH AND WERE DOWN 15 FROM A YEAR EARLIER THE BANK OF JAPAN SAID THE OVERALL WHOLESALE PRICE INDEX STOOD AT 966 FOR THE INDEX 1990 PRICES ARE AT 100 9303150166 930315 FIDELITY'S PARENT POSTS 21 INCREASE IN ASSETS FOR 1992 BY WILLIAM M BUCKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FMR CORP THE NATION'S BIGGEST MUTUALFUND MANAGER REPORTED THAT ASSETS UNDER MANAGEMENT ROSE 21 LAST YEAR TO 1898 BILLION AND NET INCOME ROSE 40 TO 125 MILLION FROM A LOW BASE CLOSELY HELD FMR PARENT OF THE FIDELITY FUNDS AND DISCOUNT BROKERAGE SERVICE PROBABLY COULD MAKE MORE MONEY BUT AS A PRIVATE COMPANY WITH NO PUBLIC SHAREHOLDERS THEY'RE BUILDING THEIR BUSINESS SAID JAMES HANBURY A FINANCIAL SERVICES ANALYST WITH WERTHEIM SCHRODER & CO EDWARD C JOHNSON III CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FMR SAID IN A LETTER TO EMPLOYEE SHAREHOLDERS THAT 1992 WAS A VERY STRONG YEAR FIDELITY'S INCREASE IN ASSETS MANAGED EXCEEDED THE 188 GROWTH FOR THE INDUSTRY LAST YEAR MR JOHNSON SAID THAT MORE THAN TWOTHIRDS OF THE GROWTH CAME IN STOCK FUNDS WHICH PROVIDED HIGHER INCOME FROM LOADS THAN EXPECTED HE SAID BROKERAGE TRANSACTIONS ALSO ROSE STRONGLY CONTRIBUTING TO A MODEST BUT ENCOURAGING INCREASE IN OPERATING MARGIN FIDELITY'S OPERATING REVENUE ROSE 24 TO 182 BILLION FROM 147 BILLION MR HANBURY OF WERTHEIM SAID THE INDICATED OPERATING PROFIT MARGIN OF 7 IS LOW FOR THE MUTUAL FUND MANAGEMENT INDUSTRY IN WHICH HE SAID AFTERTAX PROFIT MARGINS CAN RANGE FROM 15 TO 30 OF REVENUE HE NOTED THAT PUBLICLY HELD FRANKLIN RESOURCES WHICH HAS ASSETS UNDER MANAGEMENT ABOUT HALF FIDELITY'S REPORTED HIGHER NET INCOME THAN FIDELITY DID FIDELITY ALSO PROVIDED SOME ANALYSIS OF THE OVERALL PERFORMANCE OF ITS FUNDS IT SAID THAT FOR THE THREE YEARS THROUGH 1992 FIDELITY FUNDS OUTPERFORMED 70 OF THEIR PEERS IT SAID ITS STOCK FUNDS OUTPERFORMED 59 OF THEIR PEERS FIXEDINCOME FUNDS OUTPERFORMED 61 OF THEIR PEERS MONEYMARKET FUNDS OUTPERFORMED 82 OF THEIR PEERS AND HIGHINCOME FUNDS OUTPERFORMED 94 OF THEIR PEERS 9303150165 930315 OTC FOCUS TECHNOLOGY ISSUES REIGNITE IPO ARENA BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A COUPLE OF HOT NEW TECHNOLOGY STOCKS ARE REVVING UP THE RECENTLY STALLED MARKET FOR INITIAL PUBLIC OFFERINGS ON FRIDAY SOFTWARE MAKER INTUIT LEAPED 59 AND AVID TECHNOLOGY JUMPED 31 WHEN THEIR SHARES HIT THE MARKET EVEN A NEW BIOTECHNOLOGY STOCK ENERGY BIOSYSTEMS WITH NO EARNINGS MANAGED TO RISE 8 ON ITS DEBUT DESPITE A SLIDE IN THE NASDAQ MARKET WHERE MOST NEW ISSUES TRADE THE NASDAQ COMPOSITE INDEX FELL 150 OR 022 TO 69278 ON FRIDAY THE IPO MARKET IS VERY STRONG SAYS KATHY SMITH OF RENAISSANCE CAPITAL CORP IN GREENWICH CONN THE LULL COMING OUT OF FEBRUARY IS OVER AND THERE IS SUCH A BACKLOG OF DEALS IT IS HARD TO KEEP UP MONEY MANAGERS ARE HOLDING A LOT OF CASH AND LOW INTEREST RATES HAVE REDUCED THE ATTRACTION OF OTHER INVESTMENT OPTIONS BOTH FACTORS ARE BOOSTING NEW STOCKS BUT THE IPO MARKET HASN'T YET REACHED SUCH A FRENZIED PACE THAT EVERY DEAL CAN SHOOT TO THE MOON SAYS KENNETH FITZSIMMONS PARTNER IN CHARGE OF ROBERTSON STEPHENS' NEWISSUE DESK IN SAN FRANCISCO ROBERTSON STEPHENS COMANAGED INTUIT'S AND AVID'S OFFERINGS WITH MORGAN STANLEY AS THE LEAD UNDERWRITER IF THERE IS A COMPANY LIKE INTUIT IN HOT DEMAND THE BUYING WILL BE SOMEWHAT FRENETIC MR FITZSIMMONS SAYS THE BULLS SAY INTUIT A MAKER OF SOFTWARE THAT AUTOMATES FINANCIAL TASKS FOR HOUSEHOLDS AND SMALL BUSINESS HAS SUCCESSFULLY COMPETED AGAINST MICROSOFT INTUIT LEAPED TO 31 3/4 FROM AN OFFERING PRICE OF 20 IT NOW TRADES AT 52 TIMES WALL STREET ESTIMATES OF 61 CENTS A SHARE FOR FISCAL 1993 ENDING IN SEPTEMBER INVESTORS ARE ALSO PAYING A HIGH PRICE FOR AVID TECHNOLOGY A SUPPLIER OF DIGITAL VIDEO AND AUDIO EDITING SYSTEMS THE STOCK JUMPED TO 26 1/4 FROM AN INITIAL 20 AND TRADES AT 49 TIMES ANALYSTS' ESTIMATES OF 54 CENTS FOR THIS YEAR EVEN THOUGH AVID AND INTUIT ARE TRADING AT HANDSOME MULTIPLES THEY ARE STILL BELOW THE HIGHFLYING IPO OF POWERSOFT OFFERED FEB 3 POWERSOFT TRADES ABOUT AT 65 TIMES THIS YEAR'S ESTIMATED EARNINGS SHARES OF THE COMPANY A DEVELOPER OF APPLICATION SOFTWARE FOR THE CLIENT/SERVER MARKET SLID 1 1/4 FRIDAY TO 33 3/4 ONLY THE MOST DESIRABLE TECHNOLOGY DEALS WILL SEE THOSE HIGH TRADING MULTIPLES MR FITZSIMMONS SAYS MANY DEALS SUCH AS THOSE IN THE HEALTH CARE OR BIOTECH AREA WILL HAVE TO BE CUT IN SIZE OR PRICE TO GET DONE HE SAYS MCGAW A PROVIDER OF INTRAVENOUS SOLUTIONS AND RELATED EQUIPMENT TO HOSPITALS AND HEALTH CARE FACILITIES WILL PROBABLY BE CUT IN SIZE AND PRICE FROM ITS ITS ORIGINALLY PLANNED 113 MILLION SHARES AT AN INDICATED RANGE OF 10 1/2 TO 12 1/2 THE PIPELINE IS PACKED WITH NEW OFFERINGS WITH MORE THAN 100 SCHEDULED TO GO PUBLIC THIS MONTH BUT IN THE NEAR TERM MONEY MANAGERS SAY THEY DON'T EXPECT IPO FEVER TO REACH A DANGEROUS PEAK MY RULE OF THUMB IS WHEN THERE IS MORE THAN ONE ROADSHOW LUNCH AN IPO PRESENTATION PER DAY FOR OVER A WEEK IN SAN FRANCISCO THEN THE IPO SYSTEM IS AT CAPACITY AND ALL IPOS WILL TAKE A TUMBLE SAYS ROGER MCNAMEE OF INTEGRAL PARTNERS IN PALO ALTO CALIF RIGHT NOW WE ONLY HAVE ONE ABOUT EVERY ONE OR TWO DAYS APART PEOPLE STILL KNOW WHAT THEY ARE BUYING FOR THE MOST PART ENERGY BIOSYSTEMS IS A PARTICULARLY SPECULATIVE NEW ISSUE ANALYSTS SAY THE NEWLY PUBLIC COMPANY IS DEVELOPING A BIOREFINING TECHNOLOGY THAT USES BACTERIA TO REMOVE SULFUR FROM FOSSIL FUELS BUT THE COMPANY REPORTED A LOSS OF 96 CENTS A SHARE FOR 1992 WHICH WIDENED FROM A LOSS OF 29 CENTS A SHARE A YEAR EARLIER ALEX BROWN WAS THE LEAD MANAGER MOST MEDICALRELATED STOCKS WILL REMAIN OUT OF FAVOR FOR A WHILE SAYS ROBERT NATALE STANDARD & POOR'S NEWISSUES ANALYST HE SAYS RESTAURANTS HAVE ALSO ROTATED OFF THE IPO HOT LIST AND SPECIALTY RETAIL STORES HAVE JOINED TECHNOLOGY STOCKS IN THE SPOTLIGHT IN THE LATEST ROUND OF NEWLY PUBLIC COMPANIES A LARGE ISSUE ON THE NEW YORK STOCK EXCHANGE PAYLESS CASHWAYS SPARKED ENTHUSIASM AMONG INVESTORS SHARES OF THE BUILDINGMATERIALS RETAILER CLOSED FRIDAY AT 14 3/8 A HEALTHY 13 RISE FROM AN INITIAL 12 3/4 IN THE OFFERING LAST MONDAY THROUGH LEAD UNDERWRITER GOLDMAN SACHS LAST SUMMER PAYLESS WAS ONE OF THE CASUALTIES OF A WEAK IPO MARKET AS IT AND SEVERAL OTHER CONCERNS THAT HAD GONE PRIVATE IN THE 1980S LEVERAGEDBUYOUT BINGE WERE FORCED TO RETREAT MR NATALE RECOMMENDS PAYLESS AS A LONGTERM BUY MUCH OF THE COMPANY'S BUSINESS DEPENDS ON HOME REFURBISHMENT AND CONSTRUCTION SO HE SAYS IT SHOULD BENEFIT FROM CURRENT LOW INTEREST RATES AND A GROWING ECONOMY SEVERAL TECHNOLOGY OFFERINGS IN THE NEXT FEW WEEKS PROMISE TO BE POPULAR ANALYSTS SAY WALL DATA A MAKER OF WINDOWSBASED COMPUTER CONNECTIVITY SOFTWARE IS A GOOD STOCK FOR BIG INVESTORS TO BUY AND SELL FOR QUICK PROFITS SAYS S&P'S MR NATALE HE EXPECTS THE REDMOND WASH COMPANY TO EARN 65 CENTS A SHARE THIS YEAR BUT SAYS INCREASED COMPETITION WILL SOON LIMIT PROFIT GROWTH BROCK CONTROL SYSTEMS NOT BE CONFUSED WITH BROCK CANDY WHICH JUMPED TO 15 1/4 FROM 14 FRIDAY IN FIRSTDAY TRADING COULD BE ANOTHER SUCCESSFUL IPO INVESTORS SAY THE ATLANTA SOFTWARE COMPANY HAS DESIGNED PRODUCTS THAT AUTOMATE BUSINESSES' SALESMANAGEMENT FUNCTIONS ON SOCALLED MULTISERVER TECHNOLOGY INCLUDING THE CLIENT/SERVER PLATFORM THE ESTIMATED PRICE RANGE OF 9 TO 11 WOULD GIVE THE IPO A REASONABLE MULTIPLE OF AROUND 18 TIMES THE PROFIT ESTIMATE OF RENAISSANCE'S MS SMITH WHO PROJECTS 56 CENTS A SHARE FOR THIS YEAR BIG GUNS ARE BEING AIMED AT THE SOES BANDITS PROFESSIONAL TRADERS WHO ABUSE THE NASDAQ SMALL ORDER EXECUTION SYSTEM IN A LONGAWAITED MOVE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS' BOARD LAST WEEK VOTED TO CURB THE BANDITS BY TAKING SEVERAL STEPS THAT WOULD MAKE SOES LESS AUTOMATIC THE CHANGES ARE SUBJECT TO APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION SOES WAS ORIGINALLY CREATED AFTER THE OCTOBER 1987 STOCK CRASH AS A MEANS TO ENSURE QUICK AND FAIR ORDER EXECUTIONS FOR SMALL INVESTORS BUT IT HAS BECOME A HEADACHE FOR MARKET MAKERS WHO SAY ORDERS OFTEN ZIP THROUGH THE SYSTEM BEFORE THEY CAN ADJUST THE PRICES AT WHICH THEY ARE WILLING TO TRADE AS A RESULT SAY THE MARKET MAKERS THEY LOSE MONEY ON THE TRADES UNDER THE REVAMPING SOES TRANSACTIONS WOULD ARRIVE AT MARKET MAKERS' DESKS AS ORDERS RATHER THAN BE AUTOMATICALLY EXECUTED AS THEY ARE NOW WITHOUT A DEALER'S INTERVENTION SOES ORDERS WOULD BE AUTOMATICALLY EXECUTED IF A MARKET MAKER DIDN'T REJECT THEM WITHIN 15 SECONDS ORDERS COULD ONLY BE REJECTED IF A DEALER HAD ALREADY TRADED AT HIS OR HER ADVERTISED QUOTES AND HAD INTENDED TO CHANGE THEM AMONG OTHER CHANGES APPROVED BY THE BOARD THE MAXIMUM TRADE SIZE IN SOES WOULD BE CUT TO 500 SHARES FROM 1000 SHARES THE MAXIMUM TOTAL EXPOSURE THAT MARKET MAKERS FACE THROUGH SOES AT A GIVEN POSTED PRICE WOULD BE CUT TO TWO EXECUTIONS FROM FIVE EXECUTIONS AND SHORT SALES WOULD BE PROHIBITED THROUGH SOES SHORT SALES ARE BETS THAT A STOCK PRICE WILL DECLINE LATE BUYING BLUNTED THE SHARP LOSSES THAT OCCURRED EARLIER IN THE DAY ON CONCERNS ABOUT INFLATION AND TURMOIL IN RUSSIA THE NASDAQ COMPOSITE INDEX WHICH PLUNGED MORE THAN SEVEN POINTS IN THE FIRST HOUR OF TRADING FINISHED THE SESSION WITH A SLIM LOSS OF 150 OR 022 AT 69278 DECLINING ISSUES OUTNUMBERED ADVANCERS 1462 TO 1148 ON TOTAL VOLUME OF 228299000 MILLION SHARES DOWN FROM THURSDAY'S 247069000 MILLION BIOMET SLUMPED 1 3/4 TO 11 3/8 AFTER THE MEDICALDEVICE MAKER POSTED SLIGHTLY LOWER THAN EXPECTED EARNINGS FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 THE COMPANY EARNED 14 CENTS A SHARE JUST BELOW THE 15CENT AVERAGE ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM A YEAR EARLIER THE COMPANY HAD EARNINGS OF 12 CENTS A SHARE FOR THE SAME PERIOD ARTISOFT LOST 1 1/8 TO 8 THE COMPANY SAID ON THURSDAY THAT IT WILL POST LOWERTHANEXPECTED EARNINGS FOR ITS FISCAL THIRD QUARTER WHICH ENDS THIS MONTH THE TUCSON ARIZ SOFTWARE DEVELOPER SAID THIRDQUARTER REVENUE MAY BE AT OR SLIGHTLY BELOW LAST YEAR'S LEVEL OF 21 CENTS A SHARE 9303150164 930315 LORAL TO REDEEM DEBENTURES NEW YORK LORAL CORP SAID IT WILL REDEEM THE REMAINING 35 MILLION OF ITS 10 1/2 DEBENTURES APRIL 12 BRINGING TO ABOUT 300 MILLION THE DEBT THAT WILL HAVE BEEN REDEEMED BY THE AEROSPACE CONCERN THIS YEAR THE DEBENTURES WHICH WERE TO MATURE JUNE 1 2017 WILL BE REDEEMED FOR 107875 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IN JANUARY LORAL REDEEMED 160 MILLION AND REPURCHASED ON THE OPEN MARKET AN ADDITIONAL 5 MILLION OF THE 200 MILLION ISSUE THE DEFENSE CONTRACTOR SAID EARLIER THIS MONTH THAT IT PLANNED TO REDEEM THE REMAINING 35 MILLION BUT HADN'T SET A DATE THE COMPANY ALSO REDEEMED ON JAN 4 CONVERTIBLE DEBENTURES WITH A FACE VALUE OF 100 MILLION 9303150163 930315 RJR NABISCO TO REDEEM DEBT NEW YORK RJR NABISCO HOLDINGS CORP SAID IT PLANS TO REDEEM ITS 17375 SENIOR CONVERTING DEBENTURES DUE 2009 AS PART OF A CONTINUING REDEMPTION OF DEBT ISSUED IN THE 1989 MERGER OF RJ REYNOLDS TOBACCO CO AND NABISCO FOODS GROUP THE COMPANY SAID HOLDERS OF THE PAYINKIND DEBT WILL GET A CASH PAYMENT OF 93754 WHICH COVERS THE ACCRUED BUT UNPAID INTEREST FROM FEB 9 1989 THROUGH APRIL 30 FOR EACH 1000 OF PRINCIPAL PLUS THE PRINCIPAL THE REDEMPTION WILL BE PAID MAY 1 WITH A RECORD DATE OF APRIL 12 RJR NABISCO SAID THE REDEMPTION COVERS ABOUT 225 MILLION PRINICIPAL OUTSTANDING OF SENIOR CONVERTING DEBENTURES 9303150162 930315 ITALIAN EMPLOYMENT MILAN ITALIAN EMPLOYMENT IN MAJOR INDUSTRIAL COMPANIES WITH MORE THAN 500 WORKERS FELL 14 IN DECEMBER FROM NOVEMBER AND WAS DOWN 71 FROM A YEAR EARLIER STATE STATISTICAL INSTITUTE ISTAT SAID ISTAT SAID THE FIGURE CONFIRMED THE DOWNWARD TREND IN EMPLOYMENT LEVELS THAT HAD CHARACTERIZED 1992 FOR THE YEAR AS A WHOLE EMPLOYMENT IN MAJOR INDUSTRIAL COMPANIES FELL AN AVERAGE 55 FROM 1991 ISTAT SAID THE DECLINE WAS EVIDENT IN ALL SECTORS RANGING FROM A 2 FALL IN THE ENERGY INDUSTRY TO 65 IN THE STEEL INDUSTRY 9303150161 930315 NOMURA STARTS ASIAN INDEX NEW YORK NOMURA SECURITIES INTERNATIONAL INC SAID ITS RESEARCH INSTITUTE IS LAUNCHING THE NRIASIAN/PACIFIC 200 TO ESTABLISH A TRADING BENCHMARK FOR TRANSACTIONS IN ASIAN AND PACIFIC RIM COUNTRIES THE INDEX CONSISTS OF 200 BLUECHIP EQUITIES OF COMPANIES FROM AUSTRALIA HONG KONG INDONESIA SOUTH KOREA MALAYSIA THE PHILIPPINES NEW ZEALAND SINGAPORE THAILAND AND TAIWAN ONLY THAT PART OF THE MARKET OR THOSE COMPANIES AVAILABLE TO INTERNATIONAL INVESTORS WAS CONSIDERED FOR PARTICIPATION IN THE INDEX NOMURA SAID VARIOUS INDEXES WILL BE CALCULATED DAILY BASED ON MARKET CAPITALIZATION AND WILL BE PEGGED TO A BENCHMARK OF 100 AS OF THE END OF DECEMBER 1989 9303150160 930315 FINANCING BUSINESS MAXXAM INC MAXXAM INC HOUSTON TWO UNITS OF MAXXAM RAISED MORE THAN 600 MILLION FROM THE SALE OF NOTES PACIFIC LUMBER CO SAID ITS OFFERING OF 235 MILLION OF 105 SENIOR NOTES DUE 2003 WAS PRICED AT 100 OF THEIR 1000 FACE VALUE THE PREVIOUSLY ANNOUNCED OFFERING WAS INCREASED FROM AN ORIGINAL 215 MILLION THE LUMBER COMPANY'S SCOTIA PACIFIC HOLDING CO UNIT SAID ITS SALE OF 385 MILLION OF 795 NOTES BACKED BY PRIME CALIFORNIA TIMBER WAS ALSO PRICED AT 100 OF THE 1000 FACE VALUE PROCEEDS WILL BE USED TO REFINANCE PACIFIC LUMBER'S HEAVY DEBT LOAD PACIFIC LUMBER WAS ACQUIRED IN 1986 BY TEXAS FINANCIER CHARLES HURWITZ CHAIRMAN OF MAXXAM IN AN 800 MILLION HOSTILE TAKEOVER FINANCED LARGELY BY JUNK BONDS SALOMON BROTHERS INC AND DONALDSON LUFKIN & JENRETTE CORP UNDERWROTE THE TWO OFFERINGS 9303150159 930315 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK THIS PROPERTY/CASUALTY INSURANCE COMPANY SAID WILLIAM W WARD 63 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS CONTINENTAL CANADA SUBSIDIARY WILL RETIRE APRIL 1 AND BECOME CHAIRMAN EMERITUS BYRON MESSIER 43 CONTINENTAL CANADA'S PRESIDENT AND CHIEF OPERATING OFFICER WILL ADD THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9303150158 930315 BUSINESS BRIEF ABN AMRO HOLDING NV BANK'S '92 PROFIT ROSE 96 BUT DIVIDEND IS UNCHANGED THE NETHERLANDS' LARGEST BANKING GROUP ABN AMRO HOLDING NV SAID ITS NET PROFIT ROSE 96 IN 1992 TO 168 BILLION GUILDERS 900 MILLION THE COMPANY ALSO SAID IT HELD ITS ANNUAL DIVIDEND FOR 1992 UNCHANGED FROM A YEAR EARLIER AT 290 GUILDERS THERE WAS A CLEAR IMPROVEMENT IN ABN AMRO'S RESULT IN 1992 COMPARED WITH THE 1991 FIGURES DESPITE THE WORSENING ECONOMIC CLIMATE IN A NUMBER OF COUNTRIES WHERE THE BANK OPERATES THE COMPANY SAID ANALYSTS COMMENTED THAT THE BANK'S EARNINGS GROWTH WAS WITHIN THE RANGE OF EXPECTATIONS BUT THE DECISION NOT TO BOOST ITS ANNUAL DIVIDEND FOR LAST YEAR TO THE 3310 GUILDERS EXPECTED BY MANY LEFT INVESTORS DISAPPOINTED 9303150157 930315 WHO'S NEWS MEDICAL CARE AMERICA INC MEDICAL CARE AMERICA INC DALLAS LARRY M MULLEN 50 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF ALTERNATIVE HEALTH CARE SERVICES MR MULLEN WAS PREVIOUSLY A PARTNER IN THE DALLAS OFFICE OF KPMG PEAT MARWICK AND WAS WITH THE ACCOUNTING FIRM FOR 29 YEARS HE SUCCEEDS RICHARD TURNER 44 WHO RESIGNED LAST MONTH BECAUSE HE SAID AT THE TIME THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS PERFORMING MANY OF HIS DUTIES 9303150156 930315 BUSINESS BRIEF SONY CORP FRENCH UNIT BUYS 15 STAKE IN TREMA MUSIC CONCERN SONYMUSIC FRANCE A UNIT OF JAPAN'S SONY CORP HAS TAKEN A 15 INTEREST IN TREMA SA A FRENCH MUSIC LABEL SONY ANNOUNCED SONYMUSIC FRANCE BOASTS ANNUAL TURNOVER OF 14 BILLION FRANCS 248 MILLION COMPARED WITH 1726 MILLION FRANCS FOR TREMA WHICH SPECIALIZES IN FRENCH RECORDING ARTISTS AS PART OF THE INVESTMENT SONY WILL GAIN A SEAT ON TREMA'S EXECUTIVE BOARD HOWEVER MANAGEMENT WILL REMAIN IN THE HANDS OF THOSE CURRENTLY IN OFFICE SONY SAID TREMA PRESIDENT JACQUES REVAUX AND REGIS TALAR VICE PRESIDENT WILL THUS RETAIN COMPLETE AUTONOMY OF DECISIONMAKING SONY DIDN'T REVEAL THE COST OF THE INVESTMENT 9303150155 930315 WHO'S NEWS ROGERS CANTEL MOBILE COMMUNICATIONS INC ROGERS CANTEL MOBILE COMMUNICATIONS INC TORONTO JAMES F SWARD 47 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CELLULARTELEPHONE CONCERN GEORGE A FIERHELLER 59 CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE WILL ACT AS INTERIM PRESIDENT AND CHIEF OPERATING OFFICER WHILE THE COMPANY SEEKS A SUCCESSOR FOR MR SWARD MR FIERHELLER SAID MR SWARD RESIGNED TO PURSUE OTHER INTERESTS MR SWARD WASN'T AVAILABLE FOR COMMENT 9303150154 930315 COMTECH WILL REPORT 40 RISE IN SHARE NET FOR FISCAL 2ND PERIOD MELVILLE NY COMTECH TELECOMMUNICATIONS CORP EXPECTS TO POST ABOUT A 40 INCREASE IN PERSHARE EARNINGS FOR ITS SECOND QUARTER ON A NEARLY 50 RISE IN SALES SAID FRED KORNBERG CHAIRMAN AND CHIEF EXECUTIVE OFFICER THAT WOULD PUT NET INCOME FOR THE QUARTER ENDED JAN 31 AT ABOUT 377000 OR 29 CENTS A SHARE ON ABOUT 100000 MORE SHARES OUTSTANDING OR A TOTAL OF 13 MILLION SHARES A YEAR EARLIER COMTECH HAD NET OF 249000 OR 21 CENTS A SHARE ON SALES OF 43 MILLION FOR THE FIRST HALF MR KORNBERG WHO IS ALSO PRESIDENT EXPECTS TO REPORT A MORE THAN 40 INCREASE IN SALES FROM THE YEAREARLIER 79 MILLION AND ABOUT A 50 INCREASE IN PERSHARE NET THAT WOULD PUT PROFIT AT ABOUT 624000 OR 48 CENTS A SHARE UP FROM YEAREARLIER NET OF 387000 OR 32 CENTS A SHARE THE COMPANY EXPECTS TO POST RESULTS THIS WEEK MR KORNBERG CREDITED GENERALLY IMPROVED PERFORMANCE ACROSS THE BOARD AT THE COMPANY WHICH DESIGNS AND DEVELOPS HIGHTECHNOLOGY COMMUNICATIONS AND RADIOFREQUENCY AND MICROWAVE PRODUCTS FOR USE IN MILITARY AND COMMERCIAL COMMUNICATIONS APPLICATIONS TWO UNITS COMTECH MICROWAVE AND COMTECH SYSTEMS HAD ESPECIALLY STRONG PERFORMANCES THE MICROWAVE UNIT WHICH SUPPLIES SATELLITE COMMUNICATIONS EQUIPMENT MOSTLY TO THE GOVERNMENT HAD A PROJECT FOR THE NATIONAL OCEANOGRAPHIC AND ATMOSPHERIC ADMINISTRATION TO PROVIDE EQUIPMENT FOR TWO SATELLITE EARTH STATIONS FOR WEATHER INFORMATION TRACKING THE SYSTEMS UNIT WHICH COMBINES PRODUCTS FROM VARIOUS UNITS AND PUTS THEM TOGETHER INTO COMMUNICATIONS SYSTEMS FOR SATELLITE OR TROPOSCATTER USES HAS PROJECTS IN BRAZIL AND CHINA TROPOSCATTER SYSTEMS USE THE TROPOSPHERE THE THICKEST LAYER OF THE ATMOSPHERE TO TRANSMIT SIGNALS ALTHOUGH BACKLOG FELL TO 114 MILLION FROM 187 MILLION A YEAR EARLIER MR KORNBERG SAID IT DOESN'T REFLECT A LOSS OF BUSINESS BUT RATHER THE TIMING OF CONTRACTS SEVERAL CONTRACTS COMTECH EXPECTED TO RECEIVE IN THE SECOND QUARTER WERE RECEIVED IN THE THIRD HE SAID 9303150153 930315 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO JOHN H COSTELLO 45 YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THE MARKETING DIVISION FOR THE SEARS MERCHANDISE GROUP THE RETAILER SAID THAT MR COSTELLO WHO HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MARKETING RESEARCH USA SINCE 1988 SUCCEEDS MATTHEW A HOWARD 52 WHO ACCEPTED AN EARLY RETIREMENT INCENTIVE PROGRAM MR COSTELLO WILL BE RESPONSIBLE FOR ALL OF SEARS MARKETING AND BUYING SERVICES INCLUDING ADVERTISING EFFECTIVE APRIL 1 SEARS SAID HIS DIVERSE BACKGROUND IN ADVERTISING MARKETING INFORMATION RESEARCH AND CONSUMER PRODUCTS WILL BE ESSENTIAL AS WE SHAPE OUR NEW STRATEGIES AND MARKETING MESSAGES FOR THE MERCHANDISE GROUP 9303150152 930315 WHO'S NEWS CHYRON CORP CHYRON CORP MELVILLE NY ALFRED OP LEUBERT 70 YEARS OLD PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR RESIGNED EFFECTIVE LAST FRIDAY NO SUCCESSOR HAS YET BEEN NAMED CHYRON A MAKER OF DIGITAL ELECTRONIC GRAPHICS EQUIPMENT AND SYSTEMS EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION 15 MONTHS AGO MR LEUBERT SAID THE COMPANY IS IN STABLE CONDITION AND IT'S TIME TO PASS THE TORCH ON HE SAID HE HAD OTHER BUSINESS PLANS BUT WOULDN'T DISCLOSE THEM YET CHYRON IS 82OWNED BY PESA INC A SUBSIDIARY OF MADRIDBASED PESA ELECTRONICA SA 9303150151 930315 BUSINESS BRIEF BOWATER PLC EXISTING HOLDERS BUY 928 OF RIGHTS ON STOCK OFFERING BRITISH INDUSTRIAL CONGLOMERATE BOWATER PLC SAID 928 OF THE RIGHTS TO ITS 295 MILLION 423 MILLION ISSUE OF NEW CONVERTIBLE STOCK WAS BOUGHT BY EXISTING SHAREHOLDERS THE ISSUE PROCEEDS WILL BE USED TO BUY SPECIALTY COATINGS INTERNATIONAL INC BASED IN THE US FOR 434 MILLION THE REMAINING STOCK WAS SOLD TO INVESTORS AT A PREMIUM TO THE ISSUE'S FIRSTINSTALLMENT PRICE OF 132 PENCE A SHARE BOWATER SAID THE SECOND INSTALLMENT PRICE WILL BE 268 PENCE FOR A TOTAL RIGHTS PRICE OF 400 PENCE 9303150150 930315 IMPORTER OF SEAFOOD CONVICTED IN FDA CASE NEWARK NJ A SEAFOOD IMPORTER WAS CONVICTED ON 138 COUNTS OF SUBMITTING FALSE INFORMATION TO THE FOOD AND DRUG ADMINISTRATION THEKKEDAJH PEETHAMB MENON 47 YEARS OLD FACES A THEORETICAL MAXIMUM OF MORE THAN 700 YEARS IN FEDERAL PRISON AND 355 MILLION IN FINES ACCORDING TO THE US ATTORNEY'S OFFICE SENTENCING IS SET FOR MAY 21 UNTIL THEN MR MENON REMAINS FREE ON A 400000 BOND MR MENON PRESIDENT OF FLAG IMPORTS INC SEACAUCUS NJ USED FALSE INVOICES AND OTHER DOCUMENTS TO REIMPORT CONTAMINATED SEAFOOD THAT HAD ALREADY BEEN REJECTED MR MENON SHORT HILLS NJ ILLEGALLY IMPORTED MORE THAN 900000 POUNDS OF SHRIMP AND LOBSTER THE GOVERNMENT SAID NINE PEOPLE HAVE PLEADED GUILTY TO CHARGES AS A RESULT OF A CONTINUING INVESTIGATION OF FDA FOOD INSPECTION AT PORT NEWARK INCLUDING THREE FORMER FDA SAFETY INSPECTORS FOUR FOOD IMPORTERS AND TWO CUSTOMS BROKERS 9303150149 930315 BUSINESS BRIEF AB LM ERICSSON PRETAX EARNINGS FOR YEAR FELL 18 FINAL DATA SHOW SWEDISH TELECOMMUNICATIONS GROUP AB LM ERICSSON'S FINAL ACCOUNTS FOR 1992 PUBLISHED FRIDAY CONTAINED NO SIGNIFICANT DEVIATIONS FROM PRELIMINARY FIGURES REPORTED FEB9 THE FINAL ACCOUNTS PUT ERCISSON'S PRETAX PROFIT AT 131 BILLION KRONOR 1687 MILLION FOR 1992 DOWN 18 FROM 160 BILLION KRONOR IN 1991 ORDER BOOKINGS ROSE 19 IN THE YEAR TO 5343 BILLION KRONOR FROM 4476 BILLION WHILE CONSOLIDATED NET SALES WERE UP TO 4702 BILLION KRONOR FROM 4579 BILLION A YEAR EARLIER THE MARKED INCREASE IN ORDER BOOKINGS NOTED DURING THE PAST YEAR HAS CONTINUED DURING THE FIRST MONTHS OF THE CURRENT YEAR SAID LARS RAMQVIST CHIEF EXECUTIVE OFFICER NATURALLY THIS IS EXCEPTIONALLY GRATIFYING MR RAMQVIST OTHERWISE REPEATED STATEMENTS MADE FEB9 IN WHICH HE CREDITED ERICSSON'S UNDIMINISHED INVESTMENTS IN TECHNOLOGY FOR THE RISE IN ORDER BOOKINGS 9303150148 930315 SUMITOMO LIGHT METAL EXPECTS FULLYEAR LOSS TO TOTAL 17 MILLION SPECIAL TO THE WALL STREET JOURNAL TOKYO SUMITOMO LIGHT METAL INDUSTRIES LTD A BIG JAPANESE ALUMINUM MAKER SAID IT EXPECTS TO POST A NET LOSS FOR THE YEAR ENDING MARCH 31 IN A SHARP DOWNWARD REVISION OF ITS SALES AND EARNINGS FORECASTS SUMITOMO ALSO ANNOUNCED PLANS TO CUT ITS DIVIDEND FOR THE YEAR BY 30 TO 35 YEN 3 CENTS A SHARE FROM 5 YEN A YEAR EARLIER SUMITOMO SAID RESULTS WOULD BE IN THE RED DESPITE PLANS TO POST A ONETIME GAIN FROM SELLING SHARES OF A UNIT THE COMPANY CITED THE ECONOMY'S WEAKNESS IN THE SECOND HALF WHICH LED TO A BIG DROP IN DEMAND FOR ITS PRODUCTS THE ALUMINUM INDUSTRY HAS SUFFERED AMID WEAK DEMAND FROM DOMESTIC INDUSTRIES AND THE HOUSING SECTOR FOR THE YEAR SUMITOMO NOW EXPECTS CONSOLIDATED PRETAX LOSSES OF 2 BILLION YEN 17 MILLION DOWN SHARPLY FROM PROFIT OF 402 BILLION YEN A YEAR EARLIER AND DOWN FROM AN OCTOBER FORECAST OF 15 BILLION YEN IN PROFIT GROUP NET LOSSES ALSO ARE SEEN AT 2 BILLION YEN DOWN FROM PROFIT OF 184 BILLION YEN A YEAR EARLIER AND DOWN FROM THE PRIOR PROFIT FORECAST OF 500 MILLION YEN CONSOLIDATED SALES ARE PEGGED TO FALL 55 TO 230 BILLION YEN FROM 24344 BILLION YEN A YEAR EARLIER THE SALES FORECAST IS DOWN 61 FROM THE EARLY PREDICTION OF 245 BILLION YEN 9303150147 930315 BUSINESS BRIEF KANEBO LTD COMPANY LOWERS PREDICTIONS FOR CURRENT YEAR'S RESULTS KANEBO LTD A MAJOR JAPANESE TEXTILE COMPANY ALSO ACTIVE IN COSMETICS ISSUED DOWNWARD REVISIONS FOR BOTH CONSOLIDATED AND UNCONSOLIDATED EARNINGS PREDICTIONS FOR THE YEAR ENDING MARCH 31 ON A CONSOLIDATED BASIS REPRESENTING RESULTS FOR THE PARENT COMPANY AND ITS SUBSIDIARIES KANEBO NOW EXPECTS A PRETAX LOSS OF THREE BILLION YEN 255 MILLION THAT WOULD REPRESENT A SWING INTO THE RED FROM THE THREEBILLION YEN PROFIT IT FORECAST LAST JUNE AND FROM THE 127 BILLIONYEN PROFIT IT REPORTED FOR THE PRECEDING YEAR KANEBO ALSO SAID IT NOW EXPECTS 1050 BILLION YEN IN GROUP NET LOSS WIDER THAN THE THREE BILLION YEN LOSS IT PREDICTED EARLIER AND WIDER THAN THE 606 BILLIONYEN LOSS REALIZED A YEAR EARLIER CONSOLIDATED SALES ARE NOW SEEN AT 650 BILLION YEN 44 BELOW THE PRIOR FORECAST OF 680 BILLION YEN AND 46 BELOW THE 68135 BILLION LAST YEAR 9303150146 930315 INTERNATIONAL WASHINGTON INSIGHT US BID TO AID YELTSIN IS COMPLICATED BY RUSSIA'S SQUABBLING WITH UKRAINE BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UKRAINE'S LEADER LEONID KRAVCHUK WON'T BE AT NEXT MONTH'S SUMMIT MEETING BETWEEN PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN BUT HE WON'T BE FAR FROM ANYONE'S THOUGHTS THAT'S BECAUSE THE CEASELESS SQUABBLING BETWEEN RUSSIA AND UKRAINE HAS BECOME AN OBSTACLE TO US EFFORTS TO BAIL OUT MR YELTSIN OF THE TWO FORMER SOVIET REPUBLICS RUSSIA IS CLEARLY THE CLINTON ADMINISTRATION'S FIRST PRIORITY AND CONCERN ESPECIALLY NOW AS MR YELTSIN STRUGGLES TO KEEP CONTROL OF HIS OWN GOVERNMENT STILL THE WHITE HOUSE HAS BEGUN QUIETLY TO COURT MR KRAVCHUK IN PART TO HELP DEFUSE THE LONGTIME RUSSIANUKRAINIAN RIVALRY BUT STRIKING THE RIGHT BALANCE WON'T BE EASY THE DEEPER THE US REACHES INTO ITS POCKETS FOR RUSSIA THE MORE UKRAINE WILL TRY TO EXPLOIT ITS OWN LEVERAGE PREDICTS STEPHEN SESTANOVICH OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES A WASHINGTON THINK TANK AS IN ANY MESSY DIVORCE THE LIST OF TROUBLES SLIGHTS AND DEMANDS DIVIDING RUSSIA AND UKRAINE APPEARS ENDLESS BUT TWO ISSUES IN PARTICULAR DEBT AND NUCLEAR ARMS COULD SLOW PROGRESS AT THE SUMMIT SCHEDULED FOR APRIL 34 IN VANCOUVER BRITISH COLUMBIA THE US WOULD LIKE TO ARRANGE A GENEROUS RESCHEDULING OF RUSSIA'S 80 BILLION FOREIGN DEBT A KEY ELEMENT OF ANY ECONOMIC SUPPORT PACKAGE BUT FIRST MOSCOW AND KIEV MUST DECIDE WHICH COUNTRY IS RESPONSIBLE FOR PAYING OFF THE OLD SOVIET DEBT RUSSIA IS WILLING TO ASSUME THE OBLIGATION BUT ONLY IF UKRAINE CEDES ALL CLAIMS TO SOVIET ASSETS INCLUDING GOLD AND DIAMOND RESERVES AND FOREIGN EMBASSIES AND ALL THEIR CONTENTS UNTIL THE DEBT PROBLEM IS SETTLED MR CLINTON BY LAW CAN'T EVEN OFFER RUSSIA NEW US AGRICULTURAL CREDITS AS MOSCOW IS 400 MILLION BEHIND IN PAYMENTS ON EARLIER US CREDITS THE PRESIDENT ALSO WILL PRESS THE RUSSIAN LEADER TO MOVE QUICKLY ON PROMISED NUCLEARARMS CUTS BUT RUSSIA'S CONSERVATIVEDOMINATED LEGISLATURE HAS SAID THAT IT WON'T RATIFY THE NEW START II TREATY OR BEGIN IMPLEMENTING THE EARLIER START I AGREEMENT UNTIL KIEV GIVES UP ALL CLAIMS TO SOVIET MISSILES BASED ON UKRAINIAN SOIL UKRAINE SIGNED THE START I TREATY IN MAY AND AGREED TO BECOME A NONNUCLEAR STATE BUT UKRAINIAN LEGISLATORS HAVE DRAGGED THEIR FEET ON RATIFICATION WARNING THAT THE AGREEMENTS COULD MAKE THEIR COUNTRY EVEN MORE VULNERABLE TO RUSSIAN MILITARY ATTACK OR NUCLEAR BLACKMAIL NO AMOUNT OF US STROKING WILL PERSUADE THE TWO RIVALS TO SET ASIDE CENTURIESOLD RESENTMENTS AND FEARS COMPLETELY BUT UKRAINIAN OFFICIALS AND US EXPERTS SAY WASHINGTON CAN HELP DURING HIS PRESIDENTIAL CAMPAIGN MR CLINTON CRITICIZED PRESIDENT BUSH HARSHLY FOR OPPOSING UKRAINIAN INDEPENDENCE AND FOR NEGLECTING DEMOCRATIC MOVEMENTS OUTSIDE OF RUSSIA AND UKRAINIANS HAVE HIGH HOPES THAT THE NEW ADMINISTRATION WILL BE MORE SENSITIVE TO THEIR CONCERNS WHAT KIEV IS MOST LOOKING FOR IS BALANCE SOME REASSURANCE THAT ITS INTERESTS AND ITS SECURITY WILL ALSO BE TAKEN INTO ACCOUNT SAYS ADRIAN KARATNYCKY A FOREIGN AFFAIRS ANALYST AT THE AFLCIO IN FACT UKRAINE IS LOOKING FOR A WHOLE LOT MORE A MASSIVE ECONOMIC BAILOUT FROM THE WEST SECURITY GUARANTEES AND MEMBERSHIP IN THE NORTH ATLANTIC TREATY ORGANIZATION TOP ITS WISH LIST IT ISN'T LIKELY TO GET ANY OF THOSE SOON HOWEVER WHAT UKRAINE WILL GET SAY US OFFICIALS IS MORE CONSISTENT DIPLOMATIC ATTENTION FROM THE CLINTON ADMINISTRATION AND PUBLIC RECOGNITION THAT IT IS NOT JUST AN ADJUNCT OF RUSSIA KIEV ALSO WILL GET SLIGHTLY MORE ECONOMIC AID PROPORTIONATE TO ANY INCREASE IN RUSSIAN AID PRESIDENT KRAVCHUK MIGHT BE IN FOR SOME HIGHLEVEL ARM TWISTING AS WELL SAY US OFFICIALS PRESIDENT CLINTON ALREADY HAS SPOKEN WITH THE UKRAINIAN LEADER ONCE BY PHONE AND OFFICIALS SAY HE MAY CALL AGAIN SOON IF THERE IS ANY CHANCE OF BREAKING THE STALEMATE OVER DEBT AND ARMS CONTROL BEFORE NEXT MONTH'S SUMMIT UKRAINIAN FOREIGN MINISTER ANATOLY ZLENKO IS EXPECTED TO VISIT WASHINGTON LATER THIS MONTH FOR HIS FIRST MEETING WITH SECRETARY OF STATE WARREN CHRISTOPHER THE TIMING OF THAT VISIT BEFORE THE CLINTONYELTSIN SUMMIT ISN'T INTENTIONAL ACCORDING TO US OFFICIALS BUT IF IT PLEASES THE UKRAINIANS THEY SAY ALL THE BETTER 9303150145 930315 BUSINESS BRIEF SAPPORO BREWERIES LTD FIRM'S 1992 PRETAX PROFIT ROSE 49 ON 37 SALES GAIN JAPAN'S SAPPORO BREWERIES LTD A LEADING BEER MAKER REPORTED THAT GROUP PRETAX PROFIT ROSE 49 IN 1992 THE RESULTS REFLECT HEALTHY SALES DESPITE TOUGH BUSINESS CONDITIONS AND ARE IN LINE WITH PARENT COMPANY EARNINGS POSTED LAST MONTH PRETAX PROFIT WAS 987 BILLION YEN 839 MILLION UP FROM 941 BILLION YEN SALES GAINED 37 TO 57713 BILLION YEN SAPPORO PROJECTED STEADY IMPROVEMENT IN CONSOLIDATED EARNINGS THIS YEAR DESPITE ITS EXPECTATIONS THAT THE ECONOMY WOULD REMAIN IN A SEVERE CONDITION GROUP PRETAX PROFIT IN THE YEAR ENDING DEC 31 IS SEEN AT 10 BILLION YEN UP 13 FROM 1992 AND NET PROFIT IS PROJECTED TO RISE 98 TO 350 BILLION YEN SALES ARE SEEN RISING 5 TO 606 BILLION YEN 9303150144 930315 TECOGEN'S NAME CHANGE BACKED WALTHAM MASS SHAREHOLDERS OF TECOGEN INC APPROVED A CHANGE IN THE NAME OF THE COMPANY TO THERMO POWER CORP AND IN ITS STOCK SYMBOL TO THP THERMO POWER MAKES NATURALGAS ENGINES FOR VEHICLES AND INDUSTRIAL USES IT IS MAJORITY OWNED BY THERMO ELECTRON CORP 9303150143 930315 BUSINESS BRIEF LEGG MASON INC FIRM TO BUY FAIRFIELD GROUP FINANCIAL SERVICES CONCERN LEGG MASON INC SAID IN BALTIMORE THAT IT AGREED TO ACQUIRE FAIRFIELD GROUP INC A HORSHAM PA FINANCIAL SERVICES COMPANY IN A STOCK TRANSACTION TERMS WEREN'T DISCLOSED CLOSELY HELD FAIRFIELD PROVIDES MUTUALFUND ADVISORY ADMINISTRATIVE AND DISTRIBUTION SERVICES TO BANKS AND BANK TRUST DEPARTMENTS THE GROUP ADVISES TWO MONEYMARKET MUTUAL FUNDS WITH COMBINED ASSETS OF 600 MILLION AND INVESTS 13 BILLION IN SHORTTERM MONEY MARKET INSTRUMENTS FAIRFIELD WILL RETAIN ITS HEADQUARTERS AND FRANCIS J BRUZDA AND RICHARD B SEIDEL WILL CONTINUE AS ITS PRINCIPAL EXECUTIVE OFFICERS LEGG MASON IS A REGIONAL SECURITIES AND FINANCIAL SERVICES CONCERN 9303150142 930315 ENTERPRISE STATE AND LOCAL SPOTLIGHT SMALL FIRMS LOOK TO STATES FOR NEW APPROACHES TO ISSUES GROUPS TACKLE FAMILY LEAVE INSURANCE LABOR LAW AND MINORITY CONTRACTS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL AS THE CLINTON ADMINISTRATION PRESSES AHEAD WITH AN ACTIVIST AGENDA THE FEDERAL GOVERNMENT HAS GRABBED THE HEADLINES ON LEGISLATIVE ISSUES CRITICAL TO SMALL BUSINESS BUT SMALLBUSINESS GROUPS AREN'T LOOKING ONLY TO WASHINGTON THEY ALSO ARE PRESSING STATE LEGISLATURES TO TAKE FRESH APPROACHES ON CRUCIAL ISSUES INSURANCE COSTS MANDATED BENEFITS REGULATION LABOR AND HELP FOR MINORITY FIRMS STATE LAWMAKERS MEANWHILE ARE PUSHING AHEAD WITH THEIR OWN AGENDAS MOVING TO COPY INITIATIVES THAT HAVE WORKED IN OTHER STATES AND PUTTING THEIR OWN SPIN ON ISSUES THAT PREOCCUPY THE FEDERAL GOVERNMENT HERE IS A SUMMARY OF THEIR EFFORTS FAMILY LEAVE STATES WON'T LET THE FEDERAL GOVERNMENT HAVE THE LAST WORD ON THIS MANDATED BENEFIT CAUSING SMALL BUSINESSES TO WORRY ABOUT STATE EFFORTS TO EXTEND BENEFITS BEYOND THOSE STIPULATED IN THE RECENT FEDERAL LAW THAT LAW GIVES EMPLOYEES OF MOST FIRMS AS MUCH AS 12 WEEKS OF UNPAID LEAVE TO CARE FOR A CHILD SPOUSE OR PARENT NOW WE HAVE A FEDERAL LAW IT'S ENERGIZED THE ISSUE ESPECIALLY IN STATES WITH EXISTING LAWS SAYS BILL SMITH STATE DIRECTOR OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IN WISCONSIN SMALL BUSINESSES HOPE TO BLOCK A WISCONSIN MEASURE ALLOWING PARENTS TO MISS FOUR HOURS OF WORK A YEAR TO ATTEND SCHOOL EVENTS SUCH AS A TEACHER CONFERENCE OR A SPORTS EVENT MEANWHILE SMALL BUSINESSES IN MASSACHUSETTS AIM TO STOP A BILL PUSHED BY DEMOCRATIC STATE SEN LOIS PINES CHAIRMAN OF THE COMMERCE AND LABOR COMMITTEE TO EXPAND MANDATED LEAVE TO COMPANIES NOT COVERED BY FEDERAL LAW THE FEDERAL LAW COVERS COMPANIES WITH AT LEAST 50 EMPLOYEES THE MASSACHUSETTS MEASURE WOULD INCLUDE THOSE WITH AT LEAST 15 ELSEWHERE SMALL BUSINESSES ARE PRESSING TO LIMIT BENEFITS AS STATES SORT OUT CONFLICTS BETWEEN FEDERAL AND STATE LAWS FOR INSTANCE THE FEDERAL LAW GIVES WORKERS 12 WEEKS OFF A YEAR TO CARE FOR A CHILD SPOUSE OR PARENT BUT CALIFORNIA LAW ALLOWS 16 WEEKS OFF EVERY TWO YEARS WORKERS COMPENSATION SMALL BUSINESSES ARE LOOKING FOR NEW WAYS TO REIN IN SOARING COSTS OF INSURANCE FOR WORKERS INJURED ON THE JOB SUCH COVERAGE INCLUDES MEDICAL CARE SICK PAY AND LEGAL EXPENSES FOR VICTIMS IN FLORIDA FOR INSTANCE WHERE PREMIUMS HAVE JUMPED 72 IN FIVE YEARS SMALL BUSINESSES ARE BACKING A BILL THAT WOULD PROVIDE GOVERNMENT LAWYERS TO REPRESENT INJURED VICTIMS PROPONENTS SAY THE PROGRAM WOULD ELIMINATE THE HIGH FEES BUSINESSES PAY TO PRIVATE PERSONALINJURY LAWYERS ESTIMATED AT 120 MILLION STATEWIDE LAST YEAR IT WOULD ONLY COST 8 MILLION ANNUALLY THEY SAY IF PASSED WE WON'T HAVE ATTORNEYS TAKING QUESTIONABLE CASES TO COURT SAYS WILLIAM HERRLE NFIB STATE DIRECTOR THE PROPOSAL OPPOSED BY TRIAL LAWYERS RECENTLY FAILED TO MAKE IT OUT OF COMMITTEE AS A BILL AMENDMENT WAYNE HOGAN PRESIDENT OF THE ACADEMY OF FLORIDA TRIAL LAWYERS SAYS THE PROPOSAL WOULD REDUCE WORKERS' ABILITY TO CLAIM THEIR RIGHTFUL BENEFITS BY HAVING INEXPERIENCED ROOKIE GOVERNMENT LAWYERS DEFEND THEM PROPOSAL ADVOCATES EXPECT TO INTRODUCE THE MEASURE IN THE SENATE THIS YEAR HEALTH INSURANCE DESPITE THE CLINTON ADMINISTRATION'S PLEDGE TO RESOLVE THE NATION'S HEALTHCARE CRISIS STATES ARE GOING AHEAD WITH THEIR OWN PROPOSED SOLUTIONS SMALL BUSINESSES IN GEORGIA BACK A STATE PROPOSAL THERE THAT WOULD MAKE COVERAGE AVAILABLE TO EVERYONE ABLE TO BUY IT PROPONENTS SAY THE PLAN WOULD GUARANTEE THAT COVERAGE BE RENEWABLE PORTABLE FOR WORKERS SWITCHING EMPLOYERS AND PRICED THE SAME FOR EVERYBODY IN A LOCALE REGARDLESS OF SEX AGE AND HEALTH STATUS HOWEVER SMALL BUSINESSES DO HAVE CONCERNS FOR INSTANCE THOSE WITH EXISTING POLICIES QUESTION WHETHER THE PROGRAM WILL CAUSE COSTS TO RISE TOO RAPIDLY CHILD LABOR SMALL BUSINESSES ARE TRYING TO REDUCE THE HASSLES INVOLVED IN HIRING TEENAGERS IN WASHINGTON STATE WHICH CUT THE ALLOWABLE WORKWEEK FOR 16YEAROLDS AND 17YEAROLDS DURING THE SCHOOL YEAR TO 20 HOURS FROM 40 HOURS EFFECTIVE JULY 1 SMALL BUSINESSES BACK LEGISLATION TO REDUCE PAPERWORK INVOLVING PARENT AND SCHOOL APPROVALS FOR HIRING TEENS MINORITY CONTRACTORS MORE STATES ARE WEIGHING PROGRAMS TO HELP MINORITYOWNED AND WOMENOWNED CONTRACTORS OBTAIN SURETY BONDS A REQUIREMENT OF GENERAL CONTRACTORS ON PUBLIC CONSTRUCTION WORK SURETY BONDS TYPICALLY ISSUED BY INSURANCE FIRMS GUARANTEE THAT A CONTRACTOR WILL COMPLETE A PROJECT ON TIME AND PAY SUBCONTRACTORS MINORITYOWNED AND WOMENOWNED FIRMS HAVE HAD DIFFICULTY IN PERSUADING INSURANCE FIRMS TO ISSUE THEM BONDS SAY MINORITYBUSINESS ADVOCATES MARYLAND FOLLOWING OHIO'S LEAD 11 YEARS AGO PASSED A LAW LAST YEAR THAT LETS THE STATE ISSUE ITS OWN SURETY BONDS TO HELP SUCH FIRMS COMPETE THE STATE ISSUES A BOND IF A CONTRACTOR CAN'T MEET CREDIT CRITERIA TO GET A BOND PRIVATELY THE BONDS CAN GIVE A SMALL STRUGGLING MINORITY CONTRACTOR THE CHANCE TO GROW BY ENABLING THE FIRM TO BUILD UP ITS BALANCE SHEET AND OBTAIN CREDIT SAYS STANLEY TUCKER EXECUTIVE DIRECTOR OF THE MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING AUTHORITY OTHER STATES HAVE CONTACTED MARYLAND TO LEARN HOW TO DEVELOP THEIR OWN LEGISLATIVE PROPOSALS FOR SUCH A PROGRAM WOMENOWNED BUSINESSES THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS IS PUSHING STATES TO DUPLICATE PROGRAMS EITHER LEGISLATIVELY OR ADMINISTRATIVELY THAT IT BELIEVES HAVE WORKED ELSEWHERE ONE SUCH PROGRAM PASSED IN CALIFORNIA LAST YEAR SET UP A SPECIAL STATE COUNCIL TO PROMOTE BUSINESS OWNERSHIP BY WOMEN THE COUNCIL AIMS TO GATHER STATISTICS HOLD HEARINGS AND ISSUE AN ANNUAL REPORT ON WOMENOWNED BUSINESSES IN THE STATE IT'S ALSO SUPPOSED TO RECOMMEND PRIVATESECTOR PROGRAMS TO HELP SUCH BUSINESSES AND SET TIMETABLES FOR OVERCOMING DISCRIMINATORY BARRIERS CALIFORNIA BUSINESSWOMEN FACE ANOTHER PROJECT STARTED IN ILLINOIS LAST YEAR CALLS FOR STATE MONIES TO BE DEPOSITED IN BANKS THAT OFFER LOWINTEREST LOANS TO EMERGING BUSINESSES AND STARTUPS REGULATIONS THE SMALLBUSINESS BATTLE AGAINST RED TAPE IS HEATING UP IN CALIFORNIA SMALL BUSINESSES ARE PUSHING A PLAN TO CREATE A ONESTOP STATE SOURCE FOR ALL BUSINESS PERMITS REQUIRED BY STATE AND LOCAL AGENCIES MARTYN HOPPER THE NFIB'S STATE DIRECTOR SAYS SUCH AN OFFICE ALSO MIGHT HELP CONTAIN LOCAL LICENSING FEES IN WISCONSIN TOO WHERE MAJOR ENVIRONMENTAL LEGISLATION PASSED LAST YEAR AND MORE IS PENDING THIS YEAR SMALL BUSINESSES SUPPORT A BILL TO ESTABLISH A FUND TO PROVIDE LOWRATE LOANS TO HELP THEM COVER ENVIRONMENTAL CLEANUP OR PROTECTION COSTS THE STATE WOULD SET ASIDE 1 MILLION FOR LOANS TO COMPANIES WITH AS MUCH AS 50 EMPLOYEES OWNERS OR BUYERS OF PROPERTIES WITH LEAKING UNDERGROUND STORAGE TANKS WOULD BENEFIT 9303150141 930315 BUSINESS BRIEF FIYTA GROUP HOLDINGS CO WATCHMAKER TO OFFER SHARES ON SHENZHEN CHINA BOURSE WATCHMAKER FIYTA GROUP HOLDINGS CO SHENZHEN CHINA WILL OFFER SHARES TO FOREIGNERS IN THE FOURTH PUBLIC STOCK SALE TO OVERSEAS PLAYERS SO FAR THIS YEAR ON THE SHENZHEN BOURSE THE UNIT OF THE CIVIL AVIATION ADMINISTRATION OF CHINA SHENZHEN OFFICE WILL SELL 15 MILLION CLASS B SHARES TO FOREIGNERS AT 372 YUAN APIECE 637 CENTS OR ABOUT 128 TIMES 1993 PROSPECTIVE EARNINGS OF 16 MILLION YUAN 27 MILLION FIYTA IS EXPECTED TO REPORT NET INCOME OF 9 MILLION YUAN FOR 1992 FIYTA ALSO WILL ISSUE 125 MILLION CLASS A SHARES AT 36 YUAN APIECE FOR DOMESTIC CHINESE INVESTORS THE FLOTATION ON THE SHENZHEN STOCK EXCHANGE WILL RAISE THE COMPANY 1008 MILLION YUAN STANDARD CHARTERED ASIA LTD IS THE INTERNATIONAL UNDERWRITER WHILE SHENZHEN SPECIAL ECONOMIC ZONE SECURITIES CO IS THE DOMESTIC UNDERWRITER COMING ON THE HEELS OF THE FIYTA OFFER ON THE SHENZHEN BOURSE WILL BE AN OFFER BY SHENZHEN YILI MINERAL WATER CO WHICH IS ADVISED BY HG ASIA LTD 9303150140 930315 BUSINESS BRIEF EL PASO REFINERY LP CREDITORS SEEK TO FORECLOSE ON FIRM'S REFINERY ASSETS EL PASO REFINERY LP EL PASO TEXAS SAID CERTAIN CREDITORS ARE SEEKING BANKRUPTCYCOURT APPROVAL TO FORECLOSE ON THE PARTNERSHIP'S REFINERY ASSETS MAY 4 OR SOON AFTER THE COMPANY SAID IN A NEWS RELEASE THAT IT IS EVALUATING THE PROPOSAL BUT ISN'T A PARTY TO IT THE MOTION WAS MADE BY EL PASO'S TERM LENDERS THE COMPANY DIDN'T RETURN CALLS FOR COMMENT UNDER THE PROPOSAL CERTAIN CREDITORS WOULD ACQUIRE THE REFINERY ASSETS AND ASSUME RESPONSIBILITY FOR ALL ENVIRONMENTAL RISKS AFTER FORECLOSURE ALSO THE TERM LENDERS WOULD BUY ALL EXISTING INVENTORY AS WELL AS PAY CERTAIN CLAIMS AND LIENS ON THE REFINERY ASSETS IN ADDITION THEY WOULD WAIVE ALL OTHER CLAIMS THEY HAVE AGAINST THE PARTNERSHIP AND ITS UNITS THE COMPANY FILED FOR REORGANIZATION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN OCTOBER 1992 9303150139 930315 INTERNATIONAL BRIEF MICHELIN FRENCH TIRE FIRM TO CLOSE SOME PLANTS TEMPORARILY FRANCE'S MICHELIN TIRE GROUP TOLD EMPLOYEE REPRESENTATIVES FRIDAY THAT IT PLANS TO SHUT DOWN OPERATIONS AT ITS PLANTS AT CLERMONTFERRAND IN CENTRAL FRANCE FOR EIGHT DAYS BETWEEN NOW AND THE END OF APRIL THE MOVE DESIGNED TO ADAPT PRODUCTION TO DECLINING DEMAND WILL AFFECT SOME 5000 EMPLOYEES INCLUDING MANAGERS BLUECOLLAR WORKERS AND TECHNICAL STAFF THE CLOSURES WILL BE SPREAD OVER THE PERIOD MARCH 19 TO APRIL 27 MICHELIN INDICATED THAT AN ADDITIONAL CLOSURE OF TWO DAYS MAY BE DECIDED ON IF WARRANTED BY A FURTHER DETERIORATION IN THE MARKET FRENCH CAR SALES SLUMPED BY ALMOST 30 IN FEBRUARY AND EUROPEAN AUTOMOBILE INDUSTRY EXPERTS ESTIMATE THAT CAR SALES IN EUROPE MAY DECLINE BY AS MUCH AS 10 IN 1993 FROM A YEAR EARLIER 9303150138 930315 TECHNOLOGY & HEALTH DELL HIRES AIDE WHO LED APPLE'S POWERBOOK GROUP BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP SAID IT HAS HIRED THE LEADER OF THE TEAM BEHIND THE POPULAR MACINTOSH POWERBOOK TO HEAD UP ITS OWN STRUGGLING NOTEBOOKCOMPUTER BUSINESS DELL SAID JOHN K MEDICA 34 YEARS OLD WILL OVERSEE THE DESIGN AND DEVELOPMENT OF ALL OF THE COMPANY'S PORTABLE PRODUCTS MR MEDICA AN ELECTRICAL ENGINEER MOST RECENTLY WAS A SENIOR PRODUCT DIRECTOR AT APPLE COMPUTER INC WHERE HE LED THE POWERBOOK DESIGN GROUP THE NOTEBOOK MACHINE HAS BEEN A ZOOMING SUCCESS FOR APPLE GENERATING MORE THAN 1 BILLION IN SALES SINCE IT WAS INTRODUCED IN OCTOBER 1991 DELL'S NOTEBOOK BUSINESS BY CONTRAST HAS BEEN A SORE SPOT THE AUSTIN TEXAS MAILORDER MARKETER LAST YEAR SUSTAINED DELAYS ON SOME OF ITS NEW MODELS AND HAS SINCE BEEN DOGGED BY QUESTIONS ABOUT THE QUALITY OF THE SCREENS AND OTHER PARTS IN SOME OF ITS ASIANMADE MACHINES MORE IMPORTANTLY ANALYSTS SAY NOTEBOOK SALES LAST YEAR ACCOUNTED FOR ABOUT 11 OF DELL'S FISCAL 1993 SALES COMPARED WITH MORE THAN 25 AT DELL COMPETITOR COMPAQ COMPUTER CORP OF HOUSTON IT'S GETTING A LITTLE ON THE EMBARRASSING SIDE SAID JAMES D POYNER JR A PERSONAL COMPUTER ANALYST AT RAUSCHER PIERCE REFSNES INC IN DALLAS THIS IS A SERIOUS MATTER FROM A STRATEGIC STANDPOINT DEAN KLINE A DELL SPOKESMAN ACKNOWLEDGED THAT THE COMPANY HAS HAD ISOLATED PROBLEMS WITH SOME OF ITS NOTEBOOKS BUT HE SAID THOSE HAVE SINCE BEEN FIXED ISOLATED PROBLEMS HAVE BEEN THERE OVER TIME BUT I DON'T THINK THAT'S ANYTHING OUT OF THE ORDINARY HE SAID THOUGH MR MEDICA COULDN'T BE REACHED AND MR KLINE DECLINED TO DISCUSS DELL'S PRODUCT PLANS THE COMPANY TODAY IS EXPECTED TO CALM SOME OF ITS NOTEBOOK CRITICS WITH A NEW COLOR DIMENSION NOTEBOOK PRICED UNDER 2000 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY DELL'S STOCK ROSE 150 TO CLOSE AT 37375 9303150137 930315 DRUG FIRMS PROPOSE VOLUNTARY PROGRAM LIMITING PRICE RISES TO INFLATION RATE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THE PHARMACEUTICAL INDUSTRY IN AN EFFORT TO FEND OFF MANDATORY PRICE CONTROLS PROPOSED TO THE GOVERNMENT A VOLUNTARY PROGRAM UNDER WHICH EACH COMPANY'S ANNUAL AVERAGE PRICE INCREASE FOR MEDICINES WOULD BE LIMITED TO THE INFLATION RATE IN A LETTER DELIVERED TO THE JUSTICE DEPARTMENT ON FRIDAY THE INDUSTRY'S WASHINGTONBASED TRADE GROUP SAID ITS 100 MEMBERS ACTING INDIVIDUALLY WOULD COMMIT TO HOLDING ANNUAL AGGREGATE PRICE INCREASES TO A LEVEL NOT GREATER THAN THE GENERAL RATE OF INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX AS PART OF ITS PROPOSAL THE INDUSTRY SAID IT WANTS THE COMPANIES TO POLICE THEIR OWN PRICING PLEDGES BUT PEOPLE FAMILIAR WITH DISCUSSIONS BETWEEN THE DRUG MAKERS AND THE CLINTON ADMINISTRATION SAID SUCH A SELFENFORCEMENT PROGRAM MIGHT BE DIFFICULT TO ACCEPT THEY SAID THE GOVERNMENT MAY STILL ASK THE COMPANIES TO GO ALONG WITH SOME WAY OF MONITORING AND ENFORCING OF THE ANNUAL PRICE CONTROLS PERHAPS INVOLVING THE PASSAGE OF FEDERAL LAW MOREOVER CRITICS OF THE PROPOSAL SAID IT WASN'T ACCEPTABLE BECAUSE IT WOULD STILL ALLOW DRUG MAKERS TO RAISE PRICES OF INDIVIDUAL DRUGS BY AMOUNTS THAT COULD SIGNIFICANTLY EXCEED THE RATE OF INFLATION AS WELL AS ALLOWING DRUG MAKERS TO CHARGE HIGH PRICES FOR NEWLY RELEASED DRUGS STILL THE LETTER CONTAINED THE MOST DETAILED DESCRIPTION YET OF THE DRUG INDUSTRY'S OFFER TO HOLD DOWN PRICE INCREASES VOLUNTARILY IN AN EFFORT TO FEND OFF FEDERALLY MANDATED PRICE CONSTRAINTS THE CLINTON ADMINISTRATION AND SOME IN CONGRESS HAVE SHARPLY CRITICIZED THE PHARMACEUTICAL INDUSTRY OF LATE FOR THE COST OF PRESCRIPTION MEDICINES WHICH ON AVERAGE ROSE TWO TO THREE TIMES THE RATE OF INFLATION DURING THE 1980S SMARTING FROM THE ATTACKS DRUG MAKERS HAVE MOVED QUICKLY TO OFFER A SOLUTION THAT AVOIDS REGULATION EARLY LAST WEEK REPRESENTATIVES OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION INCLUDING TOP EXECUTIVES OF SIX DRUG COMPANIES MET WITH THE WHITE HOUSE'S TOP HEALTH CARE ADVISER IRA MAGAZINER THE INDUSTRY OFFICIALS OFFERED TO RESTRAIN PRICES VOLUNTARILY IF THE INDUSTRY COULD GET CLEARANCE FROM THE JUSTICE DEPARTMENT DRUG COMPANY EXECUTIVES HAVE COMPLAINED THAT THEY HAVE BEEN UNABLE TO HASH OUT PRICECONTROL IDEAS FOR FEAR OF VIOLATING FEDERAL PRICEFIXING LAWS THE PMA SAID FRIDAY THAT IF GIVEN THE ANTITRUSTLAW WAIVER THE COMPANIES WOULD IMPLEMENT A FOURSTEP PLAN IN WHICH AVERAGE DRUG PRICES WOULD BE HELD TO THE RATE OF INFLATION UNTIL NEW HEALTH CARE REFORM PROGRAMS ARE ENACTED THE PROPOSAL SAID THE COMPANIES EACH WOULD HAVE AN ACCOUNTING FIRM CERTIFY ANNUAL PRICE RISES THE INDUSTRY PROPOSED THAT ANY COMPANY WHOSE AGGREGATE AVERAGE PRICES ROSE FASTER THAN INFLATION IN A GIVEN YEAR WOULD AGREE TO REDUCE PRICES IN THE SUBSEQUENT YEAR SO AS TO ACHIEVE A ROLLINGPRICE AVERAGE THE INDUSTRY SAID THE COMPANIES WOULD ADHERE TO THE VOLUNTARY PLEDGE UNTIL A MANAGEDCOMPETITION HEALTH CARE REFORM LAW IS ENACTED UNDER SUCH A PLAN THE COMPANIES EXPECT DRUG PRICES TO BE CONSTRAINED BY MANAGEDCARE HEALTH PLANS THAT USE LARGE BUYING VOLUME TO DEMAND PRICE DISCOUNTS GERALD MOSSINGHOFF PRESIDENT OF THE PMA SAID HE BELIEVED SELFPOLICING WOULD WORK BECAUSE 10 COMPANIES REPRESENTING 40 OF THE US DRUG MARKET ALREADY HAVE BEEN ADHERING TO VOLUNTARY PRICE CONTROLS FOR SEVERAL YEARS WE DON'T THINK A GOVERNMENTIMPOSED SYSTEM IS NECESSARY IF WE CAN PROVE OUR GOOD FAITH TO CARRY OUT A VOLUNTARY SYSTEM HE SAID BUT PEOPLE FAMILIAR WITH TALKS BETWEEN THE INDUSTRY AND THE CLINTON ADMINISTRATION SAID THE WHITE HOUSE MIGHT ASK INDIVIDUAL COMPANIES TO SIGN SOME KIND OF LEGAL CONTRACT SETTING OUT DETAILS OF THE PLEDGES AND ENFORCEMENT MECHANISMS THE WHITE HOUSE ALSO MAY SEEK LAWS THAT WOULD REGULATE DRUG MAKERS THAT REFUSE TO GO ALONG WITH THE VOLUNTARY PROGRAM THE WHITE HOUSE ALSO IS CONCERNED THAT DRUG COMPANIES CAN STILL CONCENTRATE PRICE INCREASES ON WIDELY USED DRUGS A PROBLEM FOR PEOPLE WHO BUY THEIR DRUGS AT PHARMACIES AND DON'T HAVE DRUG INSURANCE FOR INSTANCE ALTHOUGH MERCK & CO SAID ITS AGGREGATE DRUG PRICES CLIMBED ONLY 31 IN 1992 MARKET INFORMATION SHOWS THAT THE COMPANY RAISED THE LIST PRICE BY 63 FOR A 5 MILLIGRAM DAILY DOSE OF ITS HUGESELLING HEART MEDICINE VASOTEC THE LIST PRICE OF MERCK'S PRILOSEC ULCER MEDICINE ROSE 72 IN 1992 ACCORDING TO A REPORT BY SHEARSON LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO THE DRUG INDUSTRY OFFICIALS SAID THEY HOPED THE JUSTICE DEPARTMENT AND THE WHITE HOUSE WOULD RESPOND QUICKLY TO THE WAIVER REQUEST AND VOLUNTARY PLEDGE PROPOSAL UNCERTAINTY OVER DRUG PRICE CONTROLS HAS PUSHED DOWN THE PRICE OF DRUG COMPANY STOCKS IN RECENT WEEKS BUT THE WHITE HOUSE MAY HOLD OFF ANY AGREEMENT UNTIL A FULL HEALTH CARE REFORM PACKAGE IS PRESENTED LATER THIS YEAR PEOPLE FAMILIAR WITH THE TALKS SAID 9303150136 930315 BUSINESS BRIEF OSMONICS INC FIRM LOWERS PRICE TO BE PAID FOR AUTOTROL CRIME CITED OSMONICS INC MINNETONKA MINN LOWERED THE PRICE IT WILL PAY TO ACQUIRE AUTOTROL CORP BECAUSE OF A 3 MILLION EMBEZZLEMENT DISCOVERED AT AN AUTOTROL DIVISION IN FRANCE IN FEBRUARY AUTOTROL A MILWAUKEEBASED MAKER OF WATERTREATMENT EQUIPMENT DISCOVERED THE EMBEZZLEMENT ALLEGEDLY BY THE FORMER CONTROLLER OF ITS FRENCH UNIT AUTOTROL SA THE DISCOVERY RESULTED FROM THE DUEDILIGENCE REVIEW FOR THE ACQUISITION OSMONICS SAID THE CONTROLLER NOW IS BEING SOUGHT BY INTERPOL AFTER A WARRANT WAS ISSUED FOR HIS ARREST OSMONICS AGREED IN DECEMBER TO ACQUIRE AUTOTROL THROUGH A STOCK TRANSACTION IN WHICH AUTOTROL HOLDERS WERE TO EXCHANGE THEIR SHARES FOR OSMONICS STOCK ON A ONEFORONE BASIS THAT DEAL CAPPED THE VALUE OF THE STOCK AUTOTROL HOLDERS WOULD RECEIVE AT 1775 UNDER THE REVISED PACT AUTOTROL HOLDERS NOW ARE TO SWAP EACH OF THEIR SHARES FOR 079 OSMONICS SHARE 9303150135 930315 KC AEROSPACE PLEADS GUILTY TO MAIL FRAUD LINKED TO PARTS SALES KANSAS CITY MO KC AEROSPACE INC PLEADED GUILTY IN FEDERAL COURT TO MAIL FRAUD LINKED TO ITS SALE OF AIRCRAFT EQUIPMENT BEARING PHONY SAFETYINSPECTION CERTIFICATIONS THE AIRCRAFTPARTS CONCERN IS IN BANKRUPTCY COURT PROCEEDINGS BUT THE US ATTORNEY'S OFFICE HERE SAID KC AEROSPACE'S GUILTY PLEA COULD EVENTUALLY ALLOW THE GOVERNMENT TO SECURE A CLAIM AGAINST THE COMPANY'S REMAINING ASSETS OR THE ASSETS OF THREE FORMER OFFICIALS WHO WERE ALSO NAMED IN THE GRAND JURY INDICTMENT LAST JUNE KC AEROSPACE WAS IN THE BUSINESS OF SUPPLYING RECONDITIONED REBUILT AND NEW PARTS TO A NUMBER OF MAJOR AIRLINES IT WAS INDICTED AFTER FEDERAL BUREAU OF INVESTIGATION AGENTS ACTING ON AN ANONYMOUS TIP RAIDED THE COMPANY OFFICES AND SEIZED ITS RECORDS FEDERAL AVIATION ADMINISTRATION RULES REQUIRE CERTAIN TYPES OF AIRCRAFT PARTS TO CARRY A CERTIFICATION TAG THAT VERIFIES AN FAACERTIFIED MECHANIC HAS INSPECTED THE PARTS FOR AIRWORTHINESS KC AEROSPACE AND THE FORMER OFFICERS WERE CHARGED WITH SUPPLYING NORTHWEST AIRLINES WITH AIRCRAFT PARTS IN WHICH THE REQUIRED CERTIFICATES CARRIED FORGED SIGNATURE OF SUCH A MECHANIC FEDERAL INVESTIGATORS SUSPECTED BUT COULDN'T CONCLUSIVELY PROVE THAT USED PARTS WERE SOLD AS NEW AND OTHERS WERE SOLD AS RECONDITIONED OR REPAIRED WHEN THEY HADN'T BEEN BECAUSE THE PAYMENT CHECKS FOR THE PARTS WENT THROUGH THE MAIL THE COMPANY WAS CHARGED WITH MAIL FRAUD THE INDICTMENT WAS RESTRICTED TO KC AEROSPACE'S DEALINGS WITH NORTHWEST ALTHOUGH THE COMPANY SOLD PARTS TO MANY CARRIERS NORTHWEST A UNIT OF WINGS HOLDINGS INC ACTIVELY HELPED FEDERAL INVESTIGATORS AND FEDERAL PROSECUTORS NOTED THE AIRLINE TOOK IMMEDIATE ACTION TO ENSURE ITS AIRCRAFT WERE FREE OF ANY POTENTIALLY UNSAFE PARTS THE AIRLINE'S OWN FAACERTIFIED MECHANICS INSPECT EVERY PART UPON RECEIPT 9303150134 930315 BUSINESS BRIEF ARTISOFT INC QUARTER'S PROFIT SEEN SHORT OF ANALYSTS' EXPECTATIONS ARTISOFT INC TUCSON ARIZ SAID EARNINGS IN THE THIRD QUARTER ENDING MARCH 31 WILL FALL SHORT OF ANALYSTS' EXPECTATIONS THE COMPUTERPRODUCTS MAKER SAID IT BELIEVES NET INCOME WILL BE AT OR SLIGHTLY BELOW BREAKEVEN COMPARED WITH 36 MILLION OR 21 CENTS A SHARE A YEAR AGO REVENUE IN THE CURRENT PERIOD MAY BE BELOW THE YEAREARLIER 203 MILLION ARTISOFT SAID THE COMPANY SAID A REVENUE DECLINE WOULD PRIMARILY BE CAUSED BY A SHIFT IN ITS SALES MIX TOWARD SOFTWAREONLY VERSIONS OF ITS NETWORK OPERATING SYSTEM AND AWAY FROM HARDWARE ADAPTERDEPENDENT VERSIONS OF THE SYSTEM THE ANTICIPATED DECLINE IN EARNINGS WOULD RESULT FROM THE REVENUE SHORTFALL COUPLED WITH INCREASED RESERVES FOR INVENTORY AND ACCOUNTS RECEIVABLE AND CERTAIN ONETIME CHARGES AND ADJUSTMENTS TO ACCRUALS A SPOKESMAN DECLINED TO ELABORATE 9303150133 930315 WHO'S NEWS ON THE BORDER CAFES NAMES FENSTERMACHER TO SUCCEED FIORI DALLAS ON THE BORDER CAFES INC YESTERDAY NAMED A NEW CHIEF EXECUTIVE OFFICER AND PRESIDENT TO SUCCEED MICHAEL FIORI WHO DIED SATURDAY IN A PLANE CRASH OUTSIDE OF DENVER THAT ALSO KILLED HIS SON STEPHEN F FENSTERMACHER 40 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER MR FENSTERMACHER PREVIOUSLY THE COMPANY'S CHIEF FINANCIAL OFFICER WAS ONE OF THREE OTHER PASSENGERS INJURED IN THE PLANE CRASH ALL REMAINED HOSPITALIZED SUNDAY IN SERIOUS CONDITION NED R LIDVALL 39 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR LIDVALL PREVIOUSLY SERVED AS VICE PRESIDENT OF OPERATIONS RAYMOND E YOAKUM 46 WAS NAMED CHIEF FINANCIAL OFFICER HE HAD BEEN VICE PRESIDENT OF FINANCE MESSRS FIORI FENSTERMACHER AND THREE OTHERS HAD BEEN FLYING IN FROM DALLAS FOR THE OPENING OF A COMPANYOWNED RESTAURANT IN DENVER AS THEIR SINGLEENGINED BEECHCRAFT BONANZA APPROACHED CENTENNIAL AIRPORT NEAR DENVER THE PILOT REPORTED THAT THE ENGINE WAS RUNNING ROUGHLY ACCORDING TO A FEDERAL AVIATION ADMINISTRATION SPOKESMAN THE PLANE THEN CRASHED INTO A POND AT AN OFFICE PARK SHORT OF THE RUNWAY THE BODIES OF MR FIORI 49 AND HIS SON WILLIAM WERE FOUND INSIDE THE PLANE ALTHOUGH THE EXTENT OF MR FENSTERMACHER'S INJURIES WERE NOT REVEALED BY THE COMPANY OR BY SWEDISH HOSPITAL IN ENGLEWOOD COLO WHERE HE IS BEING TREATED THE COMPANY SAID HE'S EXPECTED BACK AT WORK BY THE END OF THE MONTH NATIONAL TRANSPORTATION SAFETY BOARD INVESTIGATORS COULD NOT BE REACHED FOR COMMENT MR FIORI WHO JOINED ON THE BORDER CAFES AS PRESIDENT AND CHIEF OPERATING OFFICER IN JULY 1991 WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AT CHICHI'S INC ON THE BORDER CAFES OPERATES 14 RESTAURANTS IN TEXAS TENNESSEE AND COLORADO 9303150132 930315 REVISED RULES OF THE CORPORATE GAME PATH TO TOP JOB NOW TWISTS AND TURNS BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL THE FAST TRACK TO THE EXECUTIVE SUITE IS NOW FASTER NOT TO MENTION MORE UNPREDICTABLE AND A LOT RISKIER AT COMPANY AFTER COMPANY AS OLDSTYLE CHIEFS ARE TOSSED OUT AND REPLACED BY SURPRISE SUCCESSORS MIDDLE MANAGERS ARE FINDING THAT MANY OF THE OLD TRUISMS ABOUT CLIMBING THE LADDER TO THE TOP ARE NO LONGER TRUE KNOWING YOUR OWN JOB ISN'T ENOUGH YOU NEED BROAD EXPERIENCE ONE HIGHPLACED MENTOR WON'T HELP MUCH A FAST MOVER WILL NEED SEVERAL STICKING AROUND HEADQUARTERS TO BE SEEN DOESN'T CUT IT ANY MORE EITHER FOREIGN EXPERIENCE ALTHOUGH STILL FREQUENTLY SEEN BY UPANDCOMING EMPLOYEES AS A CAREER KISS OF DEATH IS RAPIDLY BECOMING ESSENTIAL AND FORGET ABOUT THE STRAIGHT CLIMB TO THE TOP OF THE COMPANY YOU STARTED WITH INCREASINGLY THE FAST TRACK UP WILL BE A ZIGZAG THROUGH DIFFERENT COMPANIES WHOEVER WANTS TO RUN GENERAL MOTORS IN THE FUTURE SHOULD LEAVE IT NOW SAYS ROGER KENNEY A HEADHUNTER THE CHANGES APPEAR AT ONE COMPANY AFTER ANOTHER AT AMERICAN TELEPHONE & TELEGRAPH CO CHIEF EXECUTIVES ONCE MOVED UP THROUGH THE TELEPHONE OPERATING COMPANIES WITH A REGULATED MONOPOLY CONTINUITY WAS ALMOST A VIRUS IN OUR BLOOD SAYS AT&T SPOKESMAN BURKE STINSON OUR SUCCESSION WAS NOTABLE FOR ITS LACK OF SURPRISES BUT TAKE A LOOK AT THE CAREER OF JERRE STEAD PRESIDENT OF AT&T'S GLOBAL BUSINESS COMMUNICATIONS SYSTEMS DURING A 21YEAR CAREER HE WAS RAPIDLY ROCKETING TO THE TOP BUT NOT OF AT&T HE WAS A RISING STAR AT HONEYWELL INC IN 1986 WHEN HE JUMPED SHIP TO JOIN SQUARE D CO THEN A 17 BILLION ELECTRONICSPRODUCTS MAKER IN 1989 HE WAS NAMED SQUARE D'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN 1991 AFTER SQUARE D WAS ACQUIRED BY ANOTHER CONCERN AT&T SNAPPED UP MR STEAD THAT KIND OF CAREER MOVEMENT WILL INCREASINGLY SEEM VALUABLE TO COMPANIES THAT NEED A CONTINUOUS FLOW OF FOLKS WITH DIFFERENT VIEWS AND DIFFERENT EXPERIENCES MR STEAD PREDICTS THINGS CHANGE SO QUICKLY THAT IF WE GET CAUGHT UP CARRYING BAGGAGE FROM THE PAST WE WON'T RESPOND TO THE EXPECTATIONS OF THE CUSTOMERS AS QUICKLY AS POSSIBLE WHAT'S MORE MR STEAD'S BACKGROUND WASN'T JUST IN ONE DISCIPLINE BUT INCLUDED STINTS IN DOMESTIC AND INTERNATIONAL MANAGEMENT JOBS IN MARKETING PRODUCTION AND FINANCE THE EXECUTIVE COUNSELS HIS OWN SON NOW A 30YEAROLD VICE PRESIDENT OF MARKETING AT A BIG TECHNOLOGY COMPANY AT THIS AGE IT'S IMPORTANT THAT HE GET EXPERIENCE IN OPERATIONS AND NOT JUST SALES AND MARKETING HAROLD W BURLINGAME SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT AT&T ADDS AT AT&T IN THE PAST WE HAD PEOPLE WHO WERE VIEWED AGAINST A STATIC SET OF ASSUMPTIONS GOOD LEADERSHIP GOOD PEOPLE SKILLS GOOD UNDERSTANDING OF FINANCIALS BUT TODAY THE EXECUTIVE SAYS THE LIST WILL SAY THE CAPACITY TO BUILD JOINT VENTURES OFFSHORE TO TAKE NEW AND STRUGGLING BUSINESSES AND MAKE THEM SUCCESSFUL TO TAKE A WORK GROUP AND TOTALLY REDEFINE THE MISSION TO HANDLE A STRATEGIC ATTACK FROM A COMPETITOR AND COME UP WITH ALTERNATIVES MANY APPLAUD THE DEVELOPMENT AS A REALISTIC ADJUSTMENT TO GLOBAL COMPETITION STILL FORGING A NEW FAST TRACK ALSO CREATES PERILS EXPERIENCE VALUED TODAY MAY BE IRRELEVANT TOMORROW IN THE PAST YOU KNEW WHERE YOU HAD TO PUNCH YOUR TICKET NOW YOU DON'T KNOW WHERE YOU HAVE TO PUNCH YOUR TICKET YOU HAVE TO BE SMARTER SAYS NOEL TICHY A PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT UNIVERSITY OF MICHIGAN'S BUSINESS SCHOOL WHAT'S MORE HE ADDS THE MESSAGE OF CHANGE HASN'T ALWAYS FILTERED DOWN TO MIDDLE MANAGERS YOU COULD BE CRUISING ALONG THINKING YOU'RE HIGH POTENTIAL BUT IN REALITY BE NOT VERY EMPLOYABLE THESE MANAGERS ARE COUNTING ON AN OLD FAST TRACK BORN OF SIMPLER ECONOMIC TIMES AND BASED ON A PREDICTABLE RISE THROUGH A SINGLE DISCIPLINE LIKE FINANCE OR MARKETING CHIEF EXECUTIVES OFTEN RESEMBLED THEIR PREDECESSORS UNTIL RECENTLY AT GENERAL MOTORS CORP FOR INSTANCE THE CHAIRMAN TRADITIONALLY HAD A FINANCE BACKGROUND WHILE THE PRESIDENT WAS AN ENGINEER IN CONTRAST THE NEW FAST TRACK OFTEN FAVORS NOT ONLY A DIFFERENT PATTERN OF EXPERIENCE BUT A DIFFERENT MANAGEMENT STYLE IN THE PAST KNOWING AND NOT CLASHING WITH THE CORPORATE CULTURE WAS KEY BUT IN AN ERA OF CHANGE THE MAVERICKS OFTEN STAND A BETTER CHANCE OF SUCCESS SAYS THOMAS GILMORE VICE PRESIDENT OF THE CENTER FOR APPLIED RESEARCH IN PHILADELPHIA AT FORD MOTOR CO FOR INSTANCE MAVERICK ALEXANDER TROTMAN RECENTLY DISPLACED HIS MORE CONVENTIONAL ONETIME BOSS AS NEXT IN LINE TO SUCCEED CHAIRMAN HAROLD POLING SEVERAL YEARS AGO MR TROTMAN WASN'T EVEN IN THE RUNNING SAYS WASHINGTONBASED CONSULTANT MICHAEL MACCOBY WHO CONSULTED WITH FORD ON ITS SUCCESSION PLANS PEOPLE THOUGHT HE WAS TOO OUTSPOKEN AND TOUGH TO GET THE TOP JOB THE CONSULTANT ADDS BUT RECENTLY THE DEEP RECESSION AND TOUGHER MARKETS ABROAD HAVE MADE FORD VALUE THOSE VERY CHARACTERISTICS AS WELL AS MR TROTMAN'S WIDE OPERATING EXPERIENCE HIS STRONG PERFORMANCE IN BAD TIMES AND HIS INTERNATIONAL BACKGROUND RECOGNIZING A NEED FOR CHANGE MANY COMPANIES ARE FOCUSING ON DIFFERENT SKILLS IN THEIR TRAINING AS PART OF ITS MANAGEMENTDEVELOPMENT PROCESS DOW CHEMICAL CO THREE YEARS AGO ASKED 300 SENIOR MANAGERS WHAT SKILLS THEIR SUCCESSORS SHOULD HAVE AMONG THE MOST COMMON ANSWERS AN ABILITY TO LEAD EFFECTIVELY IN AMBIGUOUS COMPLICATED AND DYNAMIC SITUATIONS THE KEY WORD THERE IS AMBIGUOUS SAYS LARRY WARD MANAGER OF EXECUTIVE DEVELOPMENT AT DOW CHEMICAL WE ARE LOOKING AT CONSTANT CHANGE AND THE ONLY CONSTANT IS CHANGE AS FOR INTERNATIONAL EXPERIENCE IN THE 1970S IN ORDER TO MOVE INTO AN OFFICER POSITION THEY NEVER SAID YOU HAD TO MAKE SURE YOU MANAGED OUTSIDE THE COUNTRY SAYS BETSY BERNARD A 37YEAROLD AT&T SALES VICE PRESIDENT TODAY THAT IS COMING MORE AND MORE ON THE RADAR SCREEN ADDS THE EXECUTIVE WHO IS CONSIDERING AN INTERNATIONAL ASSIGNMENT FOR HER NEXT MOVE AT FMC CORP HUMANRESOURCES VICE PRESIDENT LARRY HOLLERAN SAYS HIS COMPANY BELIEVES THAT NO ONE WILL BE IN A GENERAL MANAGEMENT JOB BY THE END OF THE DECADE WHO DIDN'T HAVE INTERNATIONAL EXPOSURE AND EXPERIENCE WHIRLPOOL INC ALSO VALUES FOREIGN EXPERIENCE OF THE EIGHT MEMBERS OF OUR EXECUTIVE COMMITTEE FIVE HAVE HAD INTERNATIONAL EXPERIENCE AND FOUR OF THOSE FIVE HAVE HAD INTERNATIONAL POSTINGS WITHIN THE LAST THREE YEARS SAYS ED DUNN CORPORATE VICE PRESIDENT HUMAN RESOURCES IN EACH CASE IT WAS A PLANNED MOVE THAT HAD EVERYTHING TO DO WITH THEIR EXECUTIVE DEVELOPMENT MANY WOULDBE TOP EXECUTIVES ARE CATCHING ON TO CHANGES IN THE CAREER LADDER CYNTHIA TRAGGE WHO IS IN THE SECOND YEAR OF THE MBA PROGRAM AT THE UNIVERSITY OF MICHIGAN AND WHO ASPIRES TO HEAD A LARGE REGIONAL OPERATION FOR A COMPANY SAYS I SEE MYSELF BECOMING AN ALLAROUND PLAYER AS SHE INTERVIEWS FOR JOBS SHE SAYS I AM LOOKING FOR A POSITION THAT WILL LET ME GET CROSSFUNCTIONAL TRAINING GET DOWN ON THE FLOOR WITH THE MANUFACTURING PEOPLE BUT NUMEROUS EXPERIENCED EXECUTIVES CLEARLY HAVEN'T GOTTEN THE MESSAGE ALBERT HIDALGO ANOTHER SECONDYEAR MICHIGAN STUDENT SAYS HE LEFT HIS PREVIOUS EMPLOYER BECAUSE THE COMPANY'S TRACKING SYSTEM WAS TOO NARROW IF YOU WERE ON THE PRODUCTION TRACK YOU WERE SUPPOSED TO STAY IN PRODUCTION HE SAYS HE ADDS THAT MOST EXECUTIVES WHO HAVE INTERVIEWED HIM FOR JOBS ALSO STILL FOCUS ON NARROW ONEDIMENSIONAL SPECIALTIES THUS MANY EXPERTS ADVISE YOUNG MANAGERS TO WATCH EVENTS AT THE TOP RATHER THAN DEPENDING ON THEIR OWN COMPANY'S CAREERPLANNING MECHANISMS IT MAY BE YEARS THEY SAY BEFORE THE ORGANIZATION CATCHES UP WITH REALITY JACQUES P ANDRE A SENIOR VICE PRESIDENT AT RECRUITERS PAUL R RAY & CO IN FORT WORTH TEXAS PUTS IT THIS WAY IT TAKES A LONG TIME TO TURN THE BATTLESHIP AROUND 9303150131 930315 LENGTHY SEC APPEALS STALL DISCIPLINARY ACTIONS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DISCIPLINARY ACTIONS AGAINST BROKERS AND SECURITIES FIRMS ARE LANGUISHING AT THE SECURITIES AND EXCHANGE COMMISSION EFFECTIVELY GIVING WRONGDOERS MORE THAN TWO YEARS OF FREEDOM FROM SANCTIONS THAT CONCLUSION COMES FROM THE SEC ITSELF AND IS EXPECTED TO BE PART OF A PACKAGE OF FINDINGS AND RECOMMENDATIONS SCHEDULED FOR RELEASE TODAY THE REPORT REFLECTS 2 1/2 YEARS OF STUDY BY THE SEC'S TASK FORCE ON ADMINISTRATIVE PROCEEDINGS HEADED BY SEC COMMISSIONER MARY SCHAPIRO THE REPORT IS EXPECTED TO SAY THAT THE SEC LET AN AVERAGE OF 226 YEARS LAPSE BEFORE ISSUING A FINAL DECISION ON AN APPEAL OF A DISCIPLINARY ORDER FROM THE NATIONAL ASSOCIATION OF SECURITIES DEALERS OR OTHER SELFREGULATING BODIES DISCIPLINARY ACTIONS TAKEN BY THE SELFREGULATING ORGANIZATIONS CAN BE APPEALED TO THE SEC CASES INITIATED INTERNALLY BY THE SEC SPENT EVEN LONGER OR 268 YEARS IN THE APPEAL PROCESS ACCORDING TO THE TASK FORCE'S EXAMINATION OF SEC OPINIONS ISSUED LAST YEAR IT HAS REALLY PAID FOR PEOPLE TO APPEAL MS SCHAPIRO SAID THE TASK FORCE FOCUSED MUCH OF ITS ATTENTION ON THE APPEAL PROCESS BECAUSE ALMOST ALL SANCTIONS INCLUDING SUSPENSIONS AND FINES ARE PUT ON HOLD WHILE A CASE IS ON APPEAL THE DELAYS DON'T AFFECT THE OUTCOME OF THE DISCIPLINARY ACTIONS AND MOST APPEALS CONCLUDE WITH THE SEC UPHOLDING THE RECOMMENDED SANCTION BUT MS SCHAPIRO SAID SHE IS CONCERNED THAT INVESTORS REMAIN AT RISK FROM UNSCRUPULOUS BROKERS AND FIRMS DURING THE TIME THAT IT TAKES TO FINISH THE APPEAL PROCESS THE TASK FORCE EXAMINED THE SEC'S REVIEW OF DISCIPLINARY ACTIONS ORIGINATED BY BOTH ITS OWN STAFF AND BY SELFREGULATING BODIES INCLUDING THE NASD AND THE NEW YORK STOCK EXCHANGE THE REPORT IS EXPECTED TO LAY SOME OF THE BLAME WITH THE SEC COMMISSIONERS AND CHAIRMAN ALTHOUGH THEIR REVIEW OF APPEALS HAS SPED UP DURING THE COURSE OF THE TASK FORCE'S STUDY STILL MS SCHAPIRO SAID THE COMMISSION CAN MOVE FASTER THE COMMISSION LET ITSELF GET REALLY REMOVED FROM THIS APPEALS PROCESS SHE SAID WE HAVE REALLY TAKEN MUCH TOO LONG TO COMPLETE REVIEWS TO CALL OURSELVES EFFICIENT THE COMMISSION CURRENTLY DOESN'T HAVE A SYSTEM FOR TRACKING CASES THAT WOULD SHOW HOW LONG THEY HAVE BEEN PENDING SOME OF THE APPEALS RESOLVED LAST YEAR FOR INSTANCE HAD BEEN PENDING FOR MORE THAN FIVE YEARS SAID TASK FORCE COUNSEL DANIEL O HIRSCH AMONG OTHER THINGS THE REPORT IS EXPECTED TO RECOMMEND THAT SEC STAFF MEMBERS INSTITUTE A CASETRACKING SYSTEM AND BE REQUIRED TO NOTIFY THE COMMISSIONERS WHEN CASES FALL BEHIND A PRESCRIBED TIMETABLE MOST APPEALS SHOULD BE RESOLVED WITHIN NINE MONTHS MS SCHAPIRO SUGGESTED THIS IS OUR OWN FORM OF LITIGATION REFORM SHE SAID THE TASK FORCE ALSO IS EXPECTED TO URGE THAT THE SEC CONVENE A MEETING WITH THE SELFDISCIPLINING AGENCIES TO MAKE SURE THAT THE DISCIPLINARY PROCESSES DON'T CONTRIBUTE TO THE DELAYS IN SEC REVIEW 9303150130 930315 ECONOMY US TRADE REPRESENTATIVE THREATENS MOVE AGAINST EC ON BUYEUROPE STANCE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US ALMOST CERTAINLY WILL BLOCK EUROPEAN COMPANIES FROM WINNING CERTAIN FEDERAL CONTRACTS BEGINNING MARCH 22 BECAUSE THE EUROPEAN COMMUNITY HASN'T AGREED TO DROP BUYEUROPE PROVISIONS IF MR KANTOR MAKES GOOD ON THE THREAT IT WOULD BE THE FIRST SIGNIFICANT TRADE ACTION TAKEN BY THE CLINTON ADMINISTRATION WHICH HAS ADOPTED A TOUGH RHETORICAL STAND ON THE ISSUE THE DISPUTE ALSO WOULD ESCALATE TRADE TENSIONS WITH THE EC WHICH ALREADY ARE HIGH BECAUSE OF A DISAGREEMENT CONCERNING EUROPEAN COMMERCIALAIRCRAFT SUBSIDIES AND STALLED WORLD TRADE TALKS THE EC COULD RETALIATE AGAINST US PRODUCTS DEEPENING THE PROBLEM ALTHOUGH MR KANTOR SAID HE DOUBTED THAT WOULD HAPPEN THE US HAS BEEN PRESSING THE EC TO DROP A POLICY OF GIVING EUROPEAN COMPANIES A PREFERENCE IN BIDDING ON TELECOMMUNICATIONS AND POWERGENERATION CONTRACTS BY DISCOUNTING THEIR BIDS 3 THE POLICY ADOPTED JAN 1 ALSO ALLOWS EC UTILITIES TO REJECT NONEUROPEAN BIDS THE EC HAS HELD FIRM TO ITS VIEW THAT THE DIRECTIVE GENERALLY LIBERALIZES THE TELECOMMUNICATIONS BUSINESS IN EUROPE AND SO SHOULD BE RETAINED MR KANTOR SAID HE CANCELED A MEETING WITH EUROPEAN NEGOTIATORS SCHEDULED FOR TODAY AND TOMORROW BECAUSE THE EC WASN'T READY TO WITHDRAW THE PROVISION HOLDING A MEETING FOR THE SAKE OF MEETING ISN'T PRODUCTIVE HE SAID THE US FIRST THREATENED ACTION FEB 1 THE MOVE WOULD BLOCK EUROPEAN COMPANIES FROM OBTAINING CONTRACTS FROM THE US GOVERNMENT FOR TELECOMMUNICATIONS POWERGENERATION EQUIPMENT AND A WIDE VARIETY OF SERVICES AN EC SPOKESWOMAN CALLED THE MEETING CANCELLATION AN UNNECESSARILY AGGRESSIVE MOVE SHE ADDED HOW CAN WE MAKE PROGRESS IF WE CAN'T NEGOTIATE EUROPE ALSO COMPLAINS ABOUT A VARIETY OF BUYAMERICA PROVISIONS ESPECIALLY FOR PENTAGON AND STATEGOVERNMENT PURCHASES US NEGOTIATORS HAVE SAID THEY WOULD BE WILLING TO TRY TO ENCOURAGE STATES TO LIBERALIZE RULES AS PART OF A SETTLEMENT THEY HAVEN'T ADDRESSED THE PENTAGON PURCHASES THE DOLLAR AMOUNTS INVOLVED IN THE DISPUTE AREN'T LARGE BY WORLD TRADE STANDARDS THE US CONTENDS THAT SALES BY ITS TELECOMMUNICATIONS AND GENERATOREQUIPMENT COMPANIES ARE MINISCULE AND THAT THE COMPANIES LOSE HUNDREDS OF MILLIONS OF DOLLARS IN GOVERNMENT SALES BECAUSE OF THE EC'S DISCRIMINATORY PRACTICES THE EC SELLS ABOUT 45 MILLION A YEAR IN TELECOMMUNICATIONS AND POWERGENERATION EQUIPMENT TO THE FEDERAL GOVERNMENT ACCORDING TO THE US GIVEN THAT DISPARITY THE US ALSO IS LOOKING AT PLACING PUNITIVE TARIFFS ON OTHER EUROPEAN IMPORTS TO DISCOURAGE PURCHASES BY PRIVATE COMPANIES BUT THE GOVERNMENT HAS BEEN CAREFUL TO EXEMPT DEFENSE DEPARTMENT PURCHASES FROM ANY SANCTIONS LARGELY OUT OF FEAR THE EC WOULD RETALIATE IN THAT AREA THE US RUNS A BIG TRADE SURPLUS IN THE WEAPONS TRADE WITH THE EC IN ANOTHER AREA MR KANTOR SAID HE EXPECTED FIGURES TO BE ANNOUNCED AT THE END OF THE WEEK WOULD SHOW THAT THE FOREIGN SHARE OF THE JAPANESE SEMICONDUCTOR MARKET ROSE TO BETWEEN 17 AND 18 IN THE FOURTH QUARTER THAT WOULD BE A SUBSTANTIAL INCREASE FROM THE THIRD QUARTER'S 159 BUT STILL WELL BELOW THE 20 LEVEL CALLED FOR IN THE USJAPAN SEMICONDUCTOR AGREEMENT THE VAST MAJORITY OF JAPANESE IMPORTS ARE FROM THE US US INDUSTRY SPOKESMEN HAVE SAID THAT IF JAPAN REACHES THE 17 LEVEL THEY WOULDN'T CALL FOR IMMEDIATE RETALIATION BUT WOULD TRY TO NEGOTIATE CONTINUED IMPROVEMENT DURING AN INDUSTRY MEETING IN TOKYO IN JUNE MR KANTOR SAID HE WOULD CONSIDER ANYTHING LESS THAN 20 TO BE A COMMITMENT NOT KEPT BY THE JAPANESE AND INDICATED HE WOULD PRESS FOR A NEW HIGHER IMPORT TARGET WE'LL TRY TO MOVE FORWARD FROM 20 AS A FLOOR HE SAID JAPANESE OFFICIALS HAVE SAID THEY WOULD STRENUOUSLY RESIST SUCH EFFORTS 9303150129 930315 DIVIDEND NEWS AIRLEASE LTD AIRLEASE LTD SAN FRANCISCO SAID ITS BOARD APPROVED A CASH DISTRIBUTION TO THE LIMITED PARTNERSHIP OF 40 CENTS A UNIT FOR THE FIRST QUARTER OF 1993 THE DIVIDEND WILL BE PAID MAY 14 TO UNITHOLDERS OF RECORD MARCH 31 9303150127 930315 LETTERS TO THE EDITOR NAFTA MEXICO AND HUMAN RIGHTS I AM COMPELLED TO RESPOND TO YOUR MARCH 4 EDITORIAL NAFTA IN THE BALANCE IN ORDER TO SET THE RECORD STRAIGHT ABOUT THE SMALL BUSINESS COMMITTEE'S FEB 25 HEARING ON THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH EXAMINED CONDITIONS OF THE BUSINESS CLIMATE IN MEXICO OUR COMMITTEE HAS SOUGHT TO STUDY LEGITIMATE POINTS OF VIEW ABOUT NAFTA AND ITS RAMIFICATIONS FOR THE US IN FIVE HEARINGS ON NAFTA WE HAVE INCLUDED SUCH PROPONENTS OF NAFTA AS PROF JOHN BAILEY WHOM YOU QUOTED WILLARD WORKMAN VICE PRESIDENT OF THE US CHAMBER OF COMMERCE AND JEFFREY SCHOTT OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS WHOSE RECENT BOOK SUPPORTS THE AGREEMENT BUT FAILS TO INCLUDE THE INSTITUTE'S LONGTERM PROJECTION THAT NAFTA WOULD NOT BENEFIT US EMPLOYMENT AFTER 10 YEARS NO OTHER COMMITTEE TO MY KNOWLEDGE HAS BROACHED THE SUBJECT OF DEMOCRACY AND HUMAN RIGHTS IN MEXICO AND WHAT THE IMPLICATIONS MIGHT BE FOR THE US THE WITNESSES BOTH AMERICAN AND MEXICAN PRESENTED RIVETING ACCOUNTS OF AUTHORITARIAN AND HUMAN RIGHTS ABUSES IN MEXICO THAT ARE NOT COMPATIBLE WITH CONDITIONS OF A TRULY FREE AND DEMOCRATIC SOCIETY YOU CHARACTERIZED MOST OF THE WITNESSES AS WELLKNOWN BASHERS OF NAFTA OR PRESIDENT SALINAS IN FACT THEY ARE WELLKNOWN DEFENDERS OF HUMAN RIGHTS AND ADVOCATES OF A TRULY DEMOCRATIC POLITICAL PROCESS NONE ADVOCATED DROPPING THE NAFTA CONCEPT RATHER THEY SUGGESTED THE PRUDENCE OF TAKING TIME TO ENSURE A GOOD AGREEMENT IMPLEMENTED IN AN ENVIRONMENT IN WHICH THE DEMOCRATIC PROCESS AND RESPECT FOR HUMAN RIGHTS ARE ALLOWED TO FLOURISH YOUR ALLEGATION THAT NAFTA'S FATE IS THREATENED BY THE CAPRICIOUSNESS OF A FEW SPECIAL INTEREST GROUPS OVERLOOKS THE CONSIDERABLE CLOUT OF SPECIAL INTEREST GROUPS THAT ARE PROPONENTS OF NAFTA BUSINESSES IN THE FORTUNE 500 AND THE POLITICALLY POWERFUL WHO STAND TO GAIN FINANCIALLY IN THIS INSTANCE WE HAVE A RESPONSIBILITY TO THE AMERICAN SMALLBUSINESS COMMUNITY WHICH MIGHT BE AT A PARTICULAR DISADVANTAGE OPERATING IN THE MEXICAN ENVIRONMENT UNDER CURRENT CIRCUMSTANCES WE MUST NOT BE SWAYED BY CRIES THAT THE FAILURE OF NAFTA COULD CAUSE AN IRREVOCABLE RIFT IN RELATIONS WITH AN IMPORTANT NEIGHBOR OR WOULD DEMORALIZE LATIN AMERICA WE MUST NOT BASE OUR ANALYSIS AND DECISIONS ON THE POLITICAL OUTLOOK OF ANOTHER COUNTRY'S LEADERSHIP FIRST WE MUST REPRESENT THE BEST INTERESTS OF OUR CITIZENS AND THE LONGTERM ECONOMIC SECURITY OF THE US 9303150126 930315 WORLD MARKETS INVESTORS BECOME OPTIMISTIC ON LONDON STOCKS AS ECONOMY FIRMS BEGIN TO REGAIN THEIR HEALTH BY SHOBA PURUSHOTHAMAN SPECIAL TO THE WALL STREET JOURNAL LONDON AFTER BATTLING THE MOST WOUNDING RECESSION SINCE WORLD WAR II THE LONDON STOCK MARKET IS SMELLING VICTORY THE BRITISH ECONOMY HAS BEEN SHRINKING FOR THE PAST 10 QUARTERS FALLING 05 IN 1992 AFTER A 1 DROP IN 1991 NOW CONSUMER DEMAND AND BOARDROOM CONFIDENCE IS UP BALANCE SHEETS TRIMMED OF BAD DEBTS ARE LOOKING HEALTHIER OPERATING PROFITS ARE UP AND COSTS ARE DOWN INTEREST RATES ARE AT A 16YEAR LOW AND EXPECTED TO DROP FURTHER WHILE INFLATION REMAINS COMFORTABLY AT A RATE LAST SEEN SEVEN YEARS AGO AS LOWER INTEREST PAYMENTS COSTCUTTING AND THE BENEFITS OF STERLING'S DEVALUATION ARE FACTORED IN EARNINGS FOR 1993 AND 1994 ARE EXPECTED TO SOAR INVESTORS SALIVATING AT THE POSSIBILITIES ARE PLOWING MONEY INTO STOCKS A GALLUP SURVEY OF BRITISH FUND MANAGERS IN EARLY MARCH SHOWED TWOTHIRDS ARE BULLISH ON UK EQUITIES FINALLY ALL THE FACTORS ARE NUDGING IN THE RIGHT DIRECTION SAYS MARK TINKER ANALYST AT KLEINWORT BENSON SECURITIES IN LONDON THIS MARKET IS BANG ON COURSE FOR A RALLY ALREADY UK STOCKS HAVE SOARED THIS MONTH SO FAR THIS YEAR THE BENCHMARK FINANCIAL TIMESSTOCK EXCHANGE 100 SHARE INDEX IS UP 24 AT 291590 ALTHOUGH THE INDEX FELL 375 POINTS FRIDAY AS TRADERS UNWOUND POSITIONS ON THE LAST DAY OF THE TWOWEEK TRADING ACCOUNT ANALYSTS PREDICT IT WILL ADD AN ADDITIONAL 150 TO 250 POINTS SUSHIL WADHWANI STRATEGIST AT GOLDMAN SACHS INTERNATIONAL BELIEVES THAT ALTHOUGH THE MARKET MAY BE VULNERABLE TO SOME SHORTTERM RETRACEMENT THE KEY INDEX WILL HIT A HIGH OF AT LEAST 3100 WE'RE OBVIOUSLY FAST APPROACHING THAT AND THE BULK OF THE GAINS WILL BE IN THE FIRST HALF HE SAYS THIS OPTIMISM COMES DESPITE THE FACT THAT THE AVERAGE COMPANY SHARE PRICE NOW SELLS AT ABOUT 18 TIMES MOST RECENT EARNINGS A LEVEL THAT WOULD ORDINARILY BE CONSIDERED ON THE HIGH SIDE BUT WITH INFLATION EXPECTED TO REMAIN LOW FOR THE REMAINDER OF 1993 PROFITS FROM THE ECONOMIC RECOVERY AREN'T EXPECTED TO BE SWALLOWED BY HIGHER WAGES ANALYSTS SAY THERE'S PLENTY YET TO PICK FROM THE BEST BUYS ARE AMONG THE MEDIUMSIZE COMPANIES THAT MAKE UP THE FTSE 250 INDEX FOR THE PAST FIVE MONTHS THESE STOCKS HAVE OUTPERFORMED THE TOP 100 COMPANIES BY ABOUT 25 BUT BECAUSE THEY'VE BEEN SO RAVAGED DURING THE RECESSION THEY'RE STILL AT LEAST 30 AWAY FROM THEIR PREVIOUS PEAK THE FTSE 250 INDEX MEASURES THE 250 COMPANIES THAT COME AFTER THE 100 LARGEST BRITISH CORPORATIONS WHILE THE TOP 100 COMPANIES ARE CAPITALIZED AT MORE THAN 1 BILLION 143 BILLION THE 250 INDEX COMPRISES THOSE WITH CAPITALIZATIONS BETWEEN 150 MILLION AND 1 BILLION RICK HOLBROOK DIRECTOR OF GLOBAL EQUITIES AT MONEY MANAGERS BAILARD BIEHL & KAISER IN SAN MATEO CALIF SAYS HE'S PUTTING MONEY INTO STOCKS SUCH AS T COWIE PLC A MOTOR INDUSTRY AND FINANCIAL SERVICES CONCERN AND FR GROUP PLC AN AEROSPACE COMPANY SMALLER STOCKS HAVE MAINLY BEEN BOOSTED BY THE BELIEF THAT WITH STERLING OUT OF THE EUROPEAN EXCHANGE RATE MECHANISM INTERESTRATE CUTS WOULDN'T BE CONSTRAINED AND THE ECONOMY WOULD BE ON TRACK FOR A QUICK RECOVERY BRITAIN HAD BEEN KEEPING RATES HIGH IN ORDER TO KEEP THE POUND WITHIN ITS ERMDESIGNATED TRADING RANGE FOR THOSE WARY OF STRAYING FROM THE TOP 100 ANALYSTS SAY THE PROSPECT OF A STRONGER DOLLAR AND THE EXPOSURE MANY OF THESE COMPANIES HAVE TO THE US MARKET ARE HOT SELLING POINTS NOW UK COMPANIES BENEFIT FROM A HIGHER DOLLAR IN TWO WAYS IT INFLATES THEIR US INCOME WHEN CONVERTED BACK INTO POUNDS AND IT MAKES BRITISHMANUFACTURED PRODUCTS CHEAPER TO BUY FOR US CONSUMERS COMPANIES SUCH AS CONSUMER GOODS AND INSURANCE GROUP BA T INDUSTRIES PLC ENGINEERING GROUP BTR PLC AND PHARMACEUTICAL COMPANY SMITHKLINE BEECHAM PLC ARE ALL EXPECTED TO RISE SMARTLY IN THE MONTHS TO COME THESE STOCKS HAVE BEEN UNDERPERFORMING THE MARKET FOR SOME WEEKS NOW AND ARE CONSIDERED CHEAP BAT FOR INSTANCE IS TRAILING ABOUT 13 BELOW THE MARKET DEALERS SAY FINANCIAL STOCKS ARE ALSO EXPECTED TO STAR IN THE NEXT 18 MONTHS AFTER TWO YEARS OF WRITING OFF HEFTY BAD PROPERTY AND BUSINESS LOANS THE SECTOR IS EXPECTED TO DOUBLE EARNINGS IN THE 199394 FISCAL YEAR INCREASED LENDING MARGINS SINCE MID1992 ARE EXPECTED TO SHOW UP IN THE BOTTOM LINE THIS YEAR A LASTMINUTE SPURT OF ARBITRAGE BUYING FRIDAY SENT THE NIKKEI INDEX ABOVE 18000 POINTS FOR THE FIRST TIME IN NEARLY HALF A YEAR SHARE PRICES ADVANCED FOR A SIXTH CONSECUTIVE SESSION IN EXTREMELY ACTIVE DEALINGS POLITICAL INSTABILITY IN RUSSIA AND AN EARLY DROP IN PRICES ON WALL STREET CREATED NERVOUSNESS IN MANY EUROPEAN MARKETS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 4616 POINTS THURSDAY ADDED 13273 TO 1803752 AT MIDDAY MONDAY THE NIKKEI WAS UP 1315 TO 1805067 FRIDAY'S FIRST SECTION VOLUME SOARED TO AN ESTIMATED 800 MILLION SHARES FROM 4448 MILLION SHARES IN THE PREVIOUS SESSION GAINING ISSUES OUTNUMBERED RETREATING ISSUES 695 TO 316 THE TOKYO STOCK PRICE INDEX OR TOPIX COMPOSED OF ALL FIRST SECTION ISSUES WHICH ROSE 246 POINTS THURSDAY PICKED UP 660 POINTS TO 135094 POSITIONING TIED TO THE SETTLEMENT OF QUARTERLY INDEX FUTURES AND OPTIONS IN THE MORNING ACCOUNTED FOR AS MUCH AS HALF OF FRIDAY'S TURNOVER PRICES WERE BOLSTERED BY A FRONTPAGE ARTICLE IN THE NIHON KEIZAI SHIMBUN THE COUNTRY'S LEADING FINANCIAL NEWSPAPER SAYING THAT LARGE CORPORATIONS SHOULD REPORT THEIR FIRST RISE IN UNCONSOLIDATED PRETAX PROFIT IN FOUR YEARS DURING THE FISCAL YEAR BEGINNING APRIL 1 IN FRANKFURT THE DAX STOCK INDEX SLUMPED 1026 POINTS TO 170714 POINTS INVESTORS WERE NERVOUS AS INSTABILITY IN RUSSIA MOUNTED AND TALKS BETWEEN GERMAN FEDERAL AND STATE GOVERNMENTS ON SHARING THE COST OF REBUILDING EASTERN GERMANY CONTINUED INTO THE WEEKEND PARIS SHARE PRICES FELL 12 PRESSURED BY A WEAKENING FRANC AND A POOR OPENING IN NEW YORK MADRID SHARES FELL 13 ON PANIC SELLING SPARKED BY RUMORS CONCERNING THE SITUATION IN RUSSIA WHILE SWISS STOCKS TUMBLED 17 AND AMSTERDAM SHARES DROPPED 13 IN HONG KONG NEWS THAT BRITAIN AND CHINA STILL HADN'T AGREED ON A SCHEDULE FOR TALKS ON THE FUTURE OF THE COLONY SENT SHARES TUMBLING 3 TO THEIR LOWEST LEVEL IN TWO WEEKS IN SEOUL STOCK PRICES WERE SHARPLY HIGHER AIDED BY RUMORS THAT THE GOVERNMENT WILL INCLUDE ECONOMYBOOSTING MEASURES IN ITS MARCH 20 ECONOMIC PACKAGE AND WILL ALLOW EXPANDED INVESTMENT BY FOREIGN INVESTORS SHARE PRICES IN SINGAPORE AND TAIWAN ENDED SHARPLY LOWER ON PROFITTAKING BANGKOK SHARE PRICES SHOT UP 21 ON STRONG VOLUME FOLLOWING A REPORT IN THE THAI PRESS THAT SUGGESTED STOCK MANIPULATORS WILL ONLY PAY FINES IF CONVICTED 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 9303150125 930315 BUSINESS BRIEF PILKINGTON PLC FIRM WILL BUY GLASS LINES FROM HEYWOOD WILLIAMS PILKINGTON PLC SAID FRIDAY IT PLANS TO ACQUIRE THE GLASS PROCESSING AND MERCHANTING BUSINESSES OF HEYWOOD WILLIAMS GROUP PLC A UK BUILDING MATERIALS CONCERN FOR 95 MILLION 1361 MILLION THE BRITISH GLASS MAKER SAID IT EXPECTS THE BUSINESSES TO ENHANCE EARNINGS IN ITS FIRST YEAR OF CONSOLIDATION PILKINGTON ADDED THAT IT HOPES THE ACQUISITION WILL ACHIEVE VERTICAL INTEGRATION SIMILAR TO THAT IN ITS CONTINENTAL EUROPEAN BUSINESSES PROVIDE A MORE DIRECT AND EFFECTIVE WAY TO MARKET ITS PRODUCTS HELP GENERATE MORE UK PROFIT AND REDUCE ITS UK TAX BURDEN WE ARE DELIGHTED TO HAVE THIS UNIQUE OPPORTUNITY TO MATCH OUR SUCCESSFUL DOWNSTREAM BUSINESSES ELSEWHERE IN EUROPE WITH A FIRSTCLASS UK NETWORK THROUGH A SINGLE TRANSACTION SAID PILKINGTON'S CHIEF EXECUTIVE OFFICER ROGER LEVERTON 9303150124 930315 ZURICH INSURANCE CENTRE REINSURANCE SET PUBLIC OFFERING IN BROKER REINSURER BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TWO IMPORTANT PLAYERS IN THE INSURANCE INDUSTRY ZURICH INSURANCE CO OF SWITZERLAND AND ITS BERMUDA AFFILIATE CENTRE REINSURANCE HOLDINGS LTD ARE GEARING UP TO CREATE A POWERFUL FORCE IN THE BROKEREDMARKET REINSURANCE BUSINESS THE TWO COMPANIES LAST WEEK FILED FOR A PROPOSED INITIAL PUBLIC OFFERING OF STOCK IN ZURICH REINSURANCE CENTRE HOLDINGS INC WITH MORE THAN 550 MILLION IN CAPITAL THE NEW YORKBASED COMPANY SAID IT WILL BE THE LARGEST BROKER REINSURER AND AMONG THE LARGEST REINSURERS IN THE US THE COMPANIES ASSERT THAT NOW IS A GOOD TIME TO GET INTO THE REINSURANCE BUSINESS THE US REINSURANCE INDUSTRY IS CONSOLIDATING AND THE LARGEST REINSURERS ARE WRITING A LARGER PROPORTION OF TOTAL REINSURANCE PREMIUMS THE FILING DECLARED SINCE THE LATE 1980S A FLURRY OF CATASTROPHES FROM HURRICANES TO EARTHQUAKES AND RIOTS HAS STRAINED ALL BUT THE BESTCAPITALIZED COMPANIES AND FORCED THE INDUSTRY TO CONSOLIDATE ON THE OTHER HAND THE LARGER COMPANIES HAVE BEEN ABLE TO RAISE RATES RECENTLY MAKING THE BUSINESS MORE PROFITABLE ACCORDING TO THE REINSURANCE ASSOCIATION OF AMERICA IN 1991 THE 10 LARGEST REINSURERS WROTE ABOUT 65 OF NET PREMIUMS COMPARED WITH 50 IN 1981 AT THE SAME TIME THE NUMBER OF REINSURERS REPORTING TO THE TRADE GROUP FELL FROM 129 IN 1982 TO 60 IN 1991 AND 54 IN 1992 AND ZURICH REINSURANCE NOTED SEVERAL REINSURERS ARE CEASING OPERATIONS AND OTHERS ARE DOWNSIZING AND REDUCING THEIR PREMIUM WRITINGS JOHN SYNDER AN ANALYST WITH AM BEST CO SAID THE NEW COMPANY WILL PROBABLY DOMINATE THE MARKET FOR BROKERED REINSURANCE MEANING REINSURANCE THAT IS SOLD THROUGH BROKERS INSTEAD OF DIRECTLY TO COMPANIES HE EXPECTS A SHAKEOUT IN THE REINSURANCE INDUSTRY AS COMPANIES WITH LESS THAN 100 MILLION IN CAPITAL STRUGGLE TO COMPETE ABOUT HALF OF ALL REINSURANCE IS ARRANGED THROUGH BROKERS THE INITIAL PUBLIC OFFERING FILING BY ZURICH REINSURANCE CENTRE HOLDINGS COVERS THE SALE OF UP TO 9450000 SHARES AT AN ESTIMATED MAXIMUM PRICE OF 28 A SHARE WHICH WOULD RAISE ABOUT 265 MILLION AFTER THE OFFERING CENTER RE'S STAKE IN ZURICH REINSURANCE WILL DECLINE TO ABOUT 55 FROM 88 CENTER RE IS 74OWNED BY ZURICH INSURANCE CO ANOTHER MAJOR INVESTOR IN ZURICH REINSURANCE IS FUND AMERICAN ENTERPRISES HOLDINGS INC NORWICH VT THE FORMER OWNER OF FIREMAN'S FUND INSURANCE CO WHICH IT SOLD IN JANUARY 1991 FUND AMERICAN HAS AGREED TO BUY TWO MILLION ZURICH REINSURANCE COMMON SHARES FOR 40 MILLION GIVING IT AN 118 INTEREST PRIOR TO THE PUBLIC OFFERING FIRST BOSTON CORP IS LEAD UNDERWRITER FOR THE OFFERING WHILE ZURICH REINSURANCE WILL USE MOST OF THE PROCEEDS TO BOLSTER CAPITAL ZURICH INSURANCE WILL REALIZE SOME PROCEEDS VIA A 70 MILLION PAYMENT FROM THE NEW COMPANY ZURICH REINSURANCE AT YEAR END HAD INVESTMENTS TOTALING 169 MILLION THE FILING SAID THE NEW COMPANY IS A KEY STRATEGIC MOVE BY ZURICH INSURANCE CO WHICH AT THE END OF 1991 HAD 49 BILLION IN ASSETS AND 49 BILLION IN CAPITAL AND SURPLUS CENTRE RE IT SAID IS THE LARGEST EXCLUSIVE WRITER OF FINITE RISK REINSURANCE WHILE ZURICH REINSURANCE WILL WRITE TRADITIONAL REINSURANCE PRODUCTS AS PART OF ITS NEW STRATEGY ZURICH REINSURANCE SAID IT INTENDS TO HANDLE 50 OR MORE OF THE REINSURANCE PROGRAMS IT UNDERWRITES A STRATEGY THAT WILL LOWER COSTS AND GIVE IT CLOSER RELATIONSHIPS WITH CLIENTS THE NEW COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL BE STEVEN M GLUCKSTERN 41 YEARS OLD WHO WILL BE PAID 750000 A YEAR HE WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CENTRE REINSURANCE HOLDINGS BUT WILL GIVING UP RESPONSIBILITIES CONNECTED WITH CENTRE RE'S REINSURANCE SUBSIDIARIES ALTHOUGH ZURICH REINSURANCE IS TECHNICALLY A SUCCESSOR TO A PREVIOUS COMPANY THE SWISS PARENT HAS ARRANGED TO ASSUME CERTAIN LIABILITIES AND RISKS FROM ITS PREVIOUS OPERATIONS 9303150123 930315 CORRECTION ALFREDO CESAR WAS PRESIDENT OF THE NICARAGUAN LEGISLATURE IN 1991 AND 1992 THIS INFORMATION WAS MISSTATED IN FRIDAY'S AMERICAS COLUMN NICARAGUAN POLS PLAY OUT I CLAUDIUS' AS THE PEOPLE SUFFER SEE RELATED ARTICLE THE AMERICAS NICARAGUAN POLS PLAY OUT I CLADIUS' AS THE PEOPLE SUFFER WSJ MARCH 12 1993 9303150122 930315 REVISED RULES OF THE CORPORATE GAME CHIEF EXECUTIVES SEE THEIR POWER SHRINK BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL HERE COMES THE NEW CEO AS THE CAREER LADDER CHANGES SO DOES ITS HIGHEST RUNG THE ONCE SEEMINGLY ABSOLUTE POWER OF THE TOP BANANA IS PEELING AWAY IN THE PROCESS A NEW CONCEPT IS EMERGING THE CHIEF EXECUTIVE OFFICER AS KEY EMPLOYEE RATHER THAN ULTIMATE BOSS AT BIG COMPANIES NATIONWIDE MORE CEOS ARE SHARING POWER WITH LOWERLEVEL EXECUTIVES AND WITH INCREASINGLY ASSERTIVE DIRECTORS AND SHAREHOLDERS THEY ARE ALSO GETTING PUSHED OUT FASTER WHEN THINGS GO WRONG AS HAPPENED RECENTLY AT AMERICAN EXPRESS CO INTERNATIONAL BUSINESS MACHINES CORP AND WESTINGHOUSE ELECTRIC CORP SOME OF THE NEW LEADERSHIP IDEAS SPLITTING THE JOBS OF CHAIRMAN AND CEO FOR INSTANCE ALREADY ARE BEING USED IN EFFORTS TO FIX SUCH TROUBLED CONCERNS AS AMERICAN EXPRESS AND GENERAL MOTORS CORP BUT CHANGES ALSO ARE TAKING HOLD IN HEALTHY COMPANIES THROUGHOUT THE US BECAUSE GROWING SHAREHOLDER AND COMPETITIVE PRESSURES MAKE SUCCESSFUL LEADERSHIP TOUGHER THAN IT HAS BEEN IN DECADES THE JOB OF CEO IS BECOMING BIGGER THAN ONE PERSON SAYS EDWARD LAWLER DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S CENTER FOR EFFECTIVE ORGANIZATIONS ADDS JAY A CONGER A LEADERSHIP EXPERT AT HARVARD BUSINESS SCHOOL THE JOB HAS NEVER BEEN MORE DEMANDING AND UNDER GREATER SCRUTINY THAN IT IS TODAY THE POWER SHIFT IN THE EXECUTIVE SUITE ALSO REFLECTS A BROADER CORPORATE MOVEMENT TO SPREAD DECISIONMAKING AUTHORITY MORE WIDELY IN SLASHING THEIR MANAGEMENT RANKS TOP OFFICIALS HAVE HAD TO GRANT GREATER RESPONSIBILITY AND AUTONOMY TO SUBORDINATES AND EGALITARIAN WORKER TEAMS ARE ON THE RISE CEOS ARE PUSHING TEAMWORK DOWNWARD AND ARE GETTING PUSHED BACK WITH QUESTIONS ABOUT WHAT THEY'RE DOING TO PRACTICE WHAT THEY PREACH MR LAWLER SAYS FOLLOWING ARE SOME OF THE WAYS COMPANIES' UPPER LEVELS ARE CHANGING OFFICE OF THE CEO AMONG THE MAJOR COMPANIES THAT HAVE ADOPTED THIS MANAGEMENT STRUCTURE ARE AMERICAN TELEPHONE & TELEGRAPH CO CORNING INC AND MOTOROLA INC A CHIEF EXECUTIVE TYPICALLY CREATES SUCH AN OFFICE BY TAPPING SEVERAL KEY DEPUTIES WHO ARE RESPONSIBLE FOR CRITICAL OPERATIONS MORE IMPORTANTLY EXPERTS SAY AN OFFICE OF THE CEO SENDS A MESSAGE TO EMPLOYEES AND OUTSIDERS ALIKE THIS CEO IS A TEAM PLAYER IN A TIME OF RAPID TRANSFORMATION YOU HAVE TO PAY A LOT OF ATTENTION TO FACETOFACE DECISION MAKING WHICH AN OFFICE OF THE CEO FOSTERS ESPECIALLY WELL SAYS NOEL TICHY A UNIVERSITY OF MICHIGAN BUSINESS PROFESSOR AND COAUTHOR OF A NEW BOOK ON JOHN F WELCH JR CHAIRMAN AND CHIEF EXECUTIVE OF GENERAL ELECTRIC CO AT GE THE TWO EXECUTIVES WHO MAKE UP THE OFFICE WITH MR WELCH DON'T FUNCTION LIKE DEPUTIES OF THE CEO SAYS MR TICHY THERE'S NO DEFERENCE TO WELCH HE DOESN'T SIT THERE SAYING WHAT SHOULD I DO' IT'S 'WHAT SHOULD WE DO' IT'S THREE GUYS SITTING AROUND AND WORKING OUT A DECISION OUTSIDE CHAIRMAN SPLITTING THE JOBS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER LATELY HAS BECOME AN IMPORTANT WAY FOR COMPANIES TO MANAGE A MAJOR LEADERSHIP CHANGE AND MAINTAIN INVESTOR CONFIDENCE BOTH AMERICAN EXPRESS AND GENERAL MOTORS TAPPED EXPERIENCED OUTSIDE DIRECTORS AS CHAIRMEN AFTER FILLING THEIR CEO SLOTS WITH INSIDERS THE MOVES CALMED WALL STREET FEARS THAT WITH AN INSIDER HOLDING BOTH POSTS NEITHER COMPANY WAS LIKELY TO MAKE CRUCIAL CHANGES HOW DO YOU GUARANTEE ACCOUNTABILITY AND CHANGE IF YOU DON'T HAVE SOMEONE FROM OUTSIDE KEEPING WATCH ON THINGS ASKS MR LAWLER JOHN NASH PRESIDENT OF THE NATIONAL ASSOCIATION OF CORPORATE DIRECTORS HAS PREDICTED THAT BY 1997 40 TO 50 OF BIG COMPANIES WILL NAME AN OUTSIDE DIRECTOR AS CHAIRMAN MORE ACTIVE BOARDS BOARDS OF DIRECTORS INCREASINGLY DOMINATED BY OUTSIDERS ARE TAKING A MORE ACTIVE ROLE IN MANAGING COMPANIES TYPICALLY AT THE CEO'S EXPENSE OUTSIDE DIRECTORS ENGINEERED THE RECENT DEPARTURE OF THE TOP BOSSES AT GM IBM AND WESTINGHOUSE LESS VISIBLY OUTSIDE DIRECTORS ARE ASSUMING MORE POWER BY REMOVING THE CEO FROM CRITICAL BOARD COMMITTEES IN THE FUTURE BOARDS ALSO MAY FORMALLY ASSESS A CEO'S PERFORMANCE AS A FEW ALREADY DO AT DAYTON HUDSON CORP FOR INSTANCE DIRECTORS ANNUALLY COMPILE WRITTEN PERFORMANCE REVIEWS OF KENNETH MACKE CHAIRMAN ALL CEOS SHOULD HAVE WRITTEN PERFORMANCE OBJECTIVES SET OUT AND DISCLOSED TO SHAREHOLDERS AND ANNUALLY MEASURED AS OBJECTIVELY AS POSSIBLE ARGUES KAYLA GILLAN ASSISTANT GENERAL COUNSEL FOR THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S BIGGEST PUBLIC PENSION FUND MANAGEMENT SPECIALISTS ALSO EXPECT BOARDS TO MEET MORE OFTEN WITHOUT THEIR CEO ESPECIALLY IF DIRECTORS ARE CONCERNED ABOUT MANAGEMENT'S ACTIONS OR INACTIONS AT AMERICAN EXPRESS FOR INSTANCE OUTSIDE DIRECTORS HELD SEVERAL EXTRAORDINARY MEETINGS ON THEIR OWN SHORTLY BEFORE THE RECENT DEPARTURE OF CHAIRMAN JAMES ROBINSON HISTORICALLY BOARD MEMBERS WOULD JUST SHOW UP AND TAKE ALL THEIR CUES FROM MANAGEMENT OR A FEW OPINION MAKERS ON THE BOARD SAYS MR TICHY NOW ANY BOARD THAT TAKES THAT ROUTE IS HEADING TO BE ANOTHER GM OR IBM MORE ACTIVE SHAREHOLDERS CEOS KNOW THEY NO LONGER CAN IGNORE INSTITUTIONAL INVESTORS AND OTHER SHAREHOLDER GROUPS WHICH NOW WIELD ENORMOUS INFLUENCE IN PRESSING FOR REFORMS AT A HOST OF COMPANIES BUT HOW BEST TO ACCOMMODATE THEM THESE GROUPS GENERALLY VOICE THEIR VIEWS THROUGH HIGHPRESSURE PROXY FIGHTS NEWS RELEASES AND PERSONAL CONFRONTATIONS WITH EXECUTIVES AND BOARDS BUT SOME LONG FOR A MORE SYSTEMATIC APPROACH ONE THAT MAY FORCE CHIEF EXECUTIVES TO PAY CLOSER HEED TO INVESTORS' VIEWS CEOS AND COMPANIES MUST SIMPLY BECOME BETTER ATTUNED TO FEEDBACK FROM LARGE SHAREHOLDERS SAYS JOHN POUND A CORPORATE GOVERNANCE EXPERT AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT MR POUND CITES THE EXAMPLE OF LAWRENCE PERLMAN CHIEF EXECUTIVE OFFICER OF CERIDIAN CORP CREATED LAST YEAR FROM THE FORMER CONTROL DATA CORP AFTER ANNOUNCING THE RESTRUCTURING THAT SPUN OFF SEVERAL ENTITIES AND CREATED CERIDIAN MR PERLMAN INVITED EIGHT OF THE NEW COMPANY'S LARGEST INSTITUTIONAL INVESTORS TO MEET WITH CERIDIAN'S BOARD AND HEAR MEMBERS' EXPLANATION OF THE MOVES THE SESSION REPRESENTED A SHIFT TOWARD MORE OPEN COMMUNICATION BETWEEN MR PERLMAN DIRECTORS AND MAJOR SHAREHOLDERS A CERIDIAN SPOKESWOMAN SAYS THE CEO PLANS MORE SUCH MEETINGS SHE ADDS SHORTER TENURE A CEO'S TENURE IS GROWING SHORTER THAN EVER SUBJECT TO ABRUPT CANCELLATION WHEN THINGS GO WRONG PARTICULARLY AT COMPANIES IN CRISIS NEW CEOS HAVE A LIMITED TIME TO PROVE THEMSELVES AT OTHER COMPANIES SIMPLY SUSTAINING GOOD PERFORMANCE WILL BECOME EVEN HARDER HARVARD BUSINESS SCHOOL'S MR CONGER COMPARES THE TASK OF THE NEW CEO TO THAT OF POLITICIANS CEOS ARE GOING TO HAVE TO SEE THEMSELVES AS CANDIDATES RUNNING FOR OFFICE WITH A NEVERENDING SERIES OF ELECTIONS HE SAYS THEY'LL NEED TO GARNER CONSTITUENT SUPPORT FROM CUSTOMERS EMPLOYEES DIRECTORS SHAREHOLDERS AND THE MEDIA 9303150121 930315 REVIEW & OUTLOOK EDITORIAL A PARDON FOR WALSH SEEMS LIKE ONLY YESTERDAY THAT JUDGE LAWRENCE WALSH WAS ALL OVER THE NETWORKS DENOUNCING GEORGE BUSH'S OUTRAGEOUS PARDON OF CASPAR WEINBERGER WELL IT NOW TURNS OUT THAT THE GOVERNMENT ACCOUNTING OFFICE ALSO AN ARM OF CONGRESS HAS JUST GIVEN JUDGE WALSH A PARDON OF HIS OWN FOR EXTENSIVE VIOLATIONS OF FEDERAL PAY AND PROCUREMENT RULES BY HIS OFFICE BETTER YET THE GOVERNMENT WILL LOOK THE OTHER WAY IF SOME OF THE VIOLATIONS CONTINUE LAST YEAR IT WAS DISCOVERED THAT BECAUSE OF AN OVERSIGHT AT THE GAO POPULARLY KNOWN AS CONGRESS'S WATCHDOG AGENCY THERE HADN'T BEEN AN AUDIT OF MR WALSH'S OFFICE AS THE LAW REQUIRED SINCE HIS PROBE BEGAN IN 1987 SO THEY SCOURED ALL THE INDEPENDENT COUNSEL AND DISCOVERED THAT MR WALSH'S PROBLEMS WERE THE MOST SEVERE NO WONDER HIS EMPIRE ACCOUNTS FOR AN ASTOUNDING 90 OF THE 43 MILLION DIRECTLY SPENT BY ALL INDEPENDENT COUNSEL SINCE 1978 AMONG OTHER THINGS THE GAO AUDIT FOUND THAT MR WALSH AND HIS TOP DEPUTY CRAIG GILLEN HAD BEEN REIMBURSED IMPROPERLY BY TAXPAYERS FOR AS MUCH AS 78000 IN FOOD AND LODGING OTHER VIOLATIONS OF GOVERNMENT RULES INCLUDED USING A GOVERNMENTLEASED VEHICLE AND FLYING FIRST CLASS AND MESSRS WALSH AND GILLEN FAILED TO PAY REQUIRED WASHINGTON DC INCOME TAXES DESPITE LIVING IN THE CITY DURING MOST OF THIS PERIOD THEY'VE SINCE PAID THE TAXES AND A PENALTY MR WALSH BITTERLY DISPUTED THE GAO'S FINDINGS THEN IN AN OCTOBER 5 1992 LETTER TO THE COMPTROLLER GENERAL HE ASKED FOR A WAIVER OF ALL OVERPAYMENTS AND IRREGULARITIES MADE IN THE PAST AND SIMILAR FUTURE DISBURSEMENTS FOR THE LIMITED PERIOD PRIOR TO THE COMPLETION OF OUR REMAINING ACTIVITIES IN SHORT JUDGE WALSH WANTED A PARDON BOTH PAST AND FUTURE HE GOT IT LAST MONTH DEPUTY COMPTROLLER GENERAL MILTON SOCOLAR SENT LETTERS TO JUDGE WALSH AND TO THE OTHER INDEPENDENT COUNSEL WAIVING THE GOVERNMENT'S RIGHT TO COLLECT MONEY FOR ANY VIOLATIONS MR SOCOLAR TOLD US THAT THE WAIVER AMOUNTS TO A FORGIVENESS OF LEGAL OBLIGATIONS BECAUSE THERE WAS NO EVIDENCE OF FRAUD OR MISREPRESENTATION HE ASKED FOR AN END TO ALL UNAUTHORIZED PAYMENTS BUT GRANTED A WAIVER IN THE CASE OF JUDGE WALSH'S TRAVEL AND LODGING EXPENSES AND FOR FUTURE VIOLATIONS THE JUSTIFICATION FOR THIS EXTRAORDINARY DISPENSATION IS THAT SINCE CONGRESS HAD NOT PROVIDED FOR THE REIMBURSEMENT OF EXPENSES FOR AN INDEPENDENT COUNSEL WHO WORKED AWAY FROM HOME THE GOVERNMENT SHOULD PAY FOR THEM ANYWAY NOW WHEN A CITIZENS GROUP CALLED AMERICANS FOR A BALANCED BUDGET FILED A FREEDOM OF INFORMATION ACT REQUEST FOR THE FINANCIAL RECORDS OF MR WALSH'S OFFICE THEY WERE TURNED DOWN A JANUARY 21 LETTER SAID THIS WOULD BE AN UNWARRANTED ADMINISTRATIVE BURDEN BUT THAT REASON ISN'T ONE OF THE EXEMPTIONS ALLOWED UNDER FOIA AND IS LUDICROUS GIVEN THAT THE FINANCIAL RECORDS WERE RECENTLY HANDED OVER TO GAO AUDITORS JUDGE WALSH WAS INFORMED THAT HE WAS CLEARLY VIOLATING FOIA RULES AND LAST WEEK HIS LAWYERS AGREED TO SURRENDER THE DOCUMENTS HAVING FOUGHT FOR AND WON HIS PARDON JUDGE WALSH COULD STILL RUN AFOUL OF OTHER ETHICS LAWS THERE ARE QUESTIONS ABOUT HIS HIRING OF A FIRM TO STAGE A MOCK TRIAL BEFORE 36 WASHINGTON DC RESIDENTS TO TEST HIS PROSECUTORIAL CASE AGAINST MR WEINBERGER SUCH A TRIAL COULD HAVE COST AS MUCH AS 50000 AND THERE ARE REPORTS THE CONTRACT WAS GIVEN TO A SAN FRANCISCO FIRM WITHOUT TAKING ANY OTHER BIDS IF SO THAT WOULD BE A CLEAR VIOLATION OF FEDERAL CONTRACT LAW THE PROSECUTOR'S OFFICE SAYS IT BELIEVES IT HAS COMPLIED WITH FEDERAL REGULATIONS THE BIANNUAL GAO AUDIT OF MR WALSH'S OFFICE IS DUE OUT SHORTLY SO JUDGE WALSH'S LEGION OF CRUSADING ATTORNEYS KEEPS TICKING RUNNING THE TAXPAYERS' METER WHILE IT PREPARES ITS FINAL PROMISE REPORT ON THE IRANCONTRA AFFAIR THE LAW THAT AUTHORIZES INDEPENDENT COUNSEL EXPIRED LAST DECEMBER 15 AND IT HAS YET TO BE RENEWED JUSTICE DEPARTMENT OFFICIALS SAY THEY HAVE NO JURISDICTION OVER JUDGE WALSH CONGRESS'S WATCHDOGS HAVE JUST GIVEN HIS OPERATION A BLANKET PARDON FOR NONCOMPLIANCE WITH GOVERNMENT RULES GOSH ISN'T THERE ANYONE OUT THERE OTHER THAN US INTERESTED IN GETTING SOME ACCOUNTABILITY INTO THIS UNSUPERVISED UNCONTROLLED CREATURE OF THE '80S HOW ABOUT THE RENO JUSTICE DEPARTMENT HOW ABOUT THE WHITE HOUSE'S ETHICISTS 9303150120 930315 TECHNOLOGY SMITHKLINE IS SET BACK ON TWO DRUG PRODUCTS LONDON BRITISH DRUG MAKER SMITHKLINE BEECHAM PLC SUFFERED BLOWS AGAINST TWO OF ITS PRODUCTS AN ADVISORY COMMITTEE TO THE US FOOD AND DRUG ADMINISTRATION DECLINED TO RECOMMEND APPROVAL OF KYTRIL AN ANTINAUSEA DRUG FOR CANCER CHEMOTHERAPY PATIENTS ALSO THE BRITISH MEDICAL JOURNAL PUBLISHED A STUDY QUESTIONING CERTAIN ADVANTAGES PREVIOUSLY CLAIMED BY MANUFACTURERS FOR A CLASS OF ANTIDEPRESSANT DRUGS KNOWN AS SELECTIVE SEROTONIN REUPTAKE INHIBITORS OR SSRIS THE STUDY SAID THAT THE HIGHER PRICE OF SSRIS DIDN'T APPEAR JUSTIFIED THAT FINDING COULD TARNISH THE IMMINENT US ROLLOUT OF PAXIL SMITHKLINE'S SSRI DRUG MANY ANALYSTS HAVE CITED THE ANTIDEPRESSANT MEDICINE ALREADY AVAILABLE IN MANY EUROPEAN MARKETS UNDER THE BRAND NAME SEROXATAS THE LIKELIEST BILLIONDOLLAR BLOCKBUSTER IN SMITHKLINE'S NEWDRUG PORTFOLIO THE FDA PANEL UNANIMOUSLY VOTED THAT KYTRIL WAS AN EFFECTIVE DRUG BUT SAID IT HAD TWO SPECIFIC CONCERNS THAT FELL OUTSIDE OF THEIR AREA OF EXPERTISE SMITHKLINE SAID A MAJORITY OF THE COMMITTEE AGREED KYTRIL SHOULD BE APPROVABLE WHEN THESE ISSUES CAN BE RESOLVED BETWEEN THE FDA AND THE COMPANY 9303150119 930315 DADE COUNTY IS ACCUSED OF VIOLATING VOTER RIGHTS WASHINGTON THE DAY JANET RENO RESIGNED AS THE DADE COUNTY FLA PROSECUTOR TO TAKE OVER THE US DEPARTMENT OF JUSTICE THE DEPARTMENT CHARGED THE COUNTY GOVERNMENT WITH VIOLATING VOTING RIGHTS IN A SUIT FILED IN FEDERAL DISTRICT COURT IN MIAMI THE DEPARTMENT SAID THE COUNTY WHICH HAS A HIGH PERCENTAGE OF SPANISHSPEAKING RESIDENTS FAILED TO DISTRIBUTE VOTER INFORMATION IN SPANISH AS WELL AS ENGLISH FOR TOMORROW'S SPECIAL ELECTION FOR COUNTY COMMISSIONERS OFFICIALS SAID THE VOTING RIGHTS ACT REQUIRED THE COUNTY TO DISTRIBUTE THE INFORMATION IN SPANISH AND SUPERSEDED A LOCAL ENGLISHONLY LAW THAT A COUNTY SPOKESWOMAN SAID PROHIBITED THE SPANISH PRINTING A FEDERAL DISTRICT COURT IN MIAMI RULED IN FAVOR OF THE JUSTICE DEPARTMENT ON SATURDAY THE VOTING INFORMATION IS BEING PRINTED IN SPANISHLANGUAGE NEWSPAPERS AND EITHER POSTERS OR BROCHURES IN SPANISH WILL BE AVAILABLE AT THE POLLING PLACES ACCORDING TO A JUSTICE DEPARTMENT SPOKESMAN THE NEW ATTORNEY GENERAL HAD NO COMMENT SAYING SHE DOESN'T PARTICIPATE IN DEPARTMENTAL MATTERS INVOLVING DADE COUNTY 9303150118 930315 REVISED RULES OF THE CORPORATE GAME FIRMS RESTRICT CEOS IN PICKING BOARD MEMBERS BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE CHIEF EXECUTIVES ARE INCREASINGLY LOSING CONTROL OVER WHO SITS ON THEIR COMPANIES' BOARDS UNDER PRESSURE FROM SHAREHOLDERS WHO SAY DIRECTORS CAN'T BE OBJECTIVE ABOUT A CEO WHO HIRED THEM BOARDS HAVE BEEN LIMITING INSIDERS' PARTICIPATION IN CHOOSING NEW DIRECTORS LAST YEAR A STUDY OF 809 BIG COMPANIES BY DIRECTORSHIP MAGAZINE SHOWED THAT 30 OF THEM BARRED INSIDERS FROM SITTING ON THE COMMITTEE THAT NOMINATES CANDIDATES FOR DIRECTORS' SLOTS IN A SIMILAR SURVEY UNDERTAKEN TWO YEARS EARLIER BY THE INVESTOR RESPONSIBILITY RESEARCH CENTER IN WASHINGTON DC THE FIGURE WAS ONLY 16 TOO OFTEN IN THE PAST THE DIRECTORS PERCEIVED THAT THEY WERE CANDIDATES OF THE CEO SAYS JAY LORSCH A PROFESSOR AT HARVARD BUSINESS SCHOOL WHO STUDIES CORPORATEGOVERNANCE ISSUES SHAREHOLDERS HAVE THEIR SAY WHEN DIRECTORS ARE ELECTED AT ANNUAL MEETINGS BUT SINCE CANDIDATES ARE ALMOST NEVER TURNED DOWN THE NOMINATION PROCESS IS CRITICAL SO THESE PROCESSES HAVE BEEN A LIGHTNING ROD FOR ACTIVIST SHAREHOLDERS WHO HAVE GROWN FRUSTRATED AS BOARDS FAILED TO PROD UNDERPERFORMING MANAGERS BOWING TO SUCH SENTIMENTS SEARS ROEBUCK & CO DIRECTORS TOOK CHAIRMAN EDWARD BRENNAN OFF THE NOMINATING COMMITTEE LAST JULY IN DECEMBER WESTINGHOUSE ELECTRIC CORP FACED WITH A POTENTIAL PROXY FIGHT FORMED A NOMINATING COMMITTEE OF OUTSIDE DIRECTORS IN JANUARY INTERNATIONAL BUSINESS MACHINES CORP TOOK THE NOMINATING POWER AWAY FROM ITS INSIDERHEAVY EXECUTIVE COMMITTEE ACTIVIST SHAREHOLDERS PARTICULARLY SOME OF THE LARGE PUBLIC PENSION FUNDS HAVE TRIED TO SPREAD THE GOSPEL AMONG LOWERPROFILE COMPANIES TOO AN EFFORT BY CONNECTICUT PUBLIC PENSION FUNDS IN 1991 EXACTED PROMISES FROM 38 COMPANIES TO TAKE INSIDERS OFF THEIR NOMINATING COMMITTEES AMONG THE COMPANIES THAT HAVE ACTED ARE HALLIBURTON CO INTEL CORP LIZ CLAIBORNE INC MARRIOTT CORP AND MATTEL INC COMPANIES FIND SUCH A MOVE RELATIVELY PAINLESS WHEN THE HUGE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM REQUESTED A MENU OF CHANGES AT ADVANCED MICRO DEVICES INC THE CALIFORNIA SEMICONDUCTOR MAKER BALKED AT SOME BUT GAVE IN QUICKLY TO A REQUEST THAT ITS CEO LEAVE THE NOMINATING COMMITTEE OUR FEELING WAS IF THAT WILL SOLVE A PROBLEM IT'S AN EASY THING TO DO A SPOKESMAN SAYS BUT THOUGH EASY TO EFFECT THE CHANGE MAY ALSO HAVE LIMITED IMPACT ON COMPANIES' PERFORMANCE AT LEAST IN THE SHORT RUN FOR ONE THING THE OUTSIDE DIRECTORS STAFFING THE NEW NOMINATING COMMITTEES WERE CHOSEN UNDER THE OLD REGIME WHICH OFTEN WAS DOMINATED BY THE CEO WE KNOW WE'RE NOT GOING TO GET COMPLETELY INDEPENDENT DIRECTORS OVERNIGHT SAYS MARYELLEN ANDERSEN AN OFFICIAL OF THE CONNECTICUT STATE TREASURER'S OFFICE WHO HAS PUSHED COMPANIES ON THE ISSUE OTHERS FRET THAT WITHOUT FORMAL PROCESSES TO EVALUATE DIRECTORS AND WEED OUT UNDERPERFORMERS BOARDS WILL REVERT TO THEIR OLD CLUBBY WAYS MANY COMPANIES INCLUDING MINNEAPOLIS'S DAYTON HUDSON CORP HAVE FORMAL PROCEDURES FOR EVALUATING THE CEO BUT FEW EVALUATE DIRECTORS DAYTON HUDSON HAS MOVED IN THAT DIRECTION BY REQUIRING THAT DIRECTORS LEAVE AT AGE 65 OR AFTER 15 YEARS WHICHEVER COMES FIRST IT ALSO REQUIRES THAT DIRECTORS RESIGN IF THEY CHANGE TO A NEW JOB THAT MAKES THEIR PERSPECTIVE LESS VALUABLE MOREOVER SOME EXPERTS AND COMPANIES ARGUE THAT THERE IS GOOD REASON TO INVOLVE THE CEO IN THE NOMINATION PROCESS SINCE THE CEO AND THE NEW DIRECTOR WILL HAVE TO RUB ELBOWS FOR YEARS NO WISE PERSON WOULD WANT TO INFLICT A NEW BOARD MEMBER ON AN UNWILLING CEO SAYS ROGER KENNY A PARTNER AT KENNY KINDLER HUNT & HOWE AN EXECUTIVERECRUITING FIRM SOME COMPANIES BRING IN THE CHIEF EXECUTIVE INFORMALLY OTHERS KEEP THE CEO ON THE NOMINATING COMMITTEE BUT NOT AS CHAIRMAN ONE OF THE LATTER IS FIBREBOARD CORP A CONCORD CALIF MAKER OF PAPER PRODUCTS YOU NEED THE CEO INVOLVED TO TEST COMPATIBILITY SAYS CEO JOHN D ROACH BUT HE SHOULDN'T BE IN A POSITION TO DICTATE THE ARRANGEMENT WORKS AT FIBREBOARD BUT THEN AGAIN THE INDEPENDENCE OF THE COMPANY'S DIRECTORS ISN'T AT ISSUE MR ROACH CAME TO THE JOB TWO YEARS AGO AFTER THE BOARD FORCED OUT HIS PREDECESSOR 9303150117 930315 BUSINESS BRIEF KATY INDUSTRIES INC FIRM GETS NEW CARROLL OFFER FOR BALANCE OF ITS SHARES KATY INDUSTRIES INC ELGIN ILL SAID ITS BOARD RECEIVED A NEW PROPOSAL FROM THE CARROLL FAMILY TO ACQUIRE ALL OF KATY'S COMMON SHARES THAT IT DOESN'T ALREADY OWN FOR 2575 EACH OR 1099 MILLION KATY WHICH HAS INTERESTS IN INDUSTRIAL MACHINERY COMPONENTS AND CONSUMER PRODUCTS SAID MEMBERS OF THE CARROLL FAMILY HOLD MORE THAN 52 OF ITS NINE MILLION COMMON SHARES OUTSTANDING AND THAT ALL MEMBERS OF THE FAMILY SUPPORT THE PROPOSAL KATY SAID THE FAMILY AND RELATED ENTITIES OWN 4748427 KATY SHARES 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 AND WASN'T RECOMMENDED BY A SPECIAL COMMITTEE OF KATY'S BOARD APPOINTED TO CONSIDER SUCH PROPOSAL THIS MONTH THE SPECIAL COMMITTEE WAS REINSTATED TO REVIEW ANY NEW PROPOSALS THAT MIGHT BE MADE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE KATY SHARES ROSE 175 TO 25 9303150116 930315 WILKES UNIVERSITY GETS GIFT TO ESTABLISH CENTER FROM ALLAN P KIRBY JR WILKESBARRE PA WILKES UNIVERSITY RECEIVED A GIFT FROM ALLAN P KIRBY JR A DIRECTOR AND MAJOR SHAREHOLDER OF ALLEGHANY CORP TO ESTABLISH A CENTER FOR THE STUDY OF ENTREPRENEURSHIP IN HIS FATHER'S NAME THE UNIVERSITY DIDN'T SPECIFY THE AMOUNT OF THE GIFT ALTHOUGH A SPOKESMAN SAID IT WAS IN THE MILLIONS MR KIRBY MADE THE DONATION FOR THE ALLAN P KIRBY CENTER FOR FREE ENTERPRISE AND ENTREPRENEURSHIP MR KIRBY'S FATHER WHO DIED IN 1973 WAS OF THE FAMILY THAT HAS CONTROLLED ALLEGHANY FOR DECADES FM KIRBY IS CHAIRMAN AND CHIEF EXECUTIVE ALLAN P KIRBY JR IS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE THE CENTER WILL BE AN ADJUNCT TO THE UNIVERSITY'S BUSINESS SCHOOL WHICH AWARDS UNDERGRADUATE AND MASTER'S DEGREES ALLEGHANY BASED IN NEW YORK OWNS A TITLE INSURANCE COMPANY A THRIFT INSTITUTION AND TWO INDUSTRIAL COMPANIES 9303150115 930315 MARKETING & MEDIA QUAKER OATS CO RECALLS 1600 GRANOLA BAR CASES CHICAGO AP QUAKER OATS CO ISSUED A RECALL OF 1600 CASES OF GRANOLA BARS THAT MAY CONTAIN SMALL PARTICLES OF METAL THE RECALL AFFECTS CERTAIN SHIPMENTS OF THE CHOCOLATECHIP FLAVORED QUAKER CHEWY GRANOLA BARS TO CALIFORNIA CONNECTICUT MASSACHUSETTS NEW YORK NEW JERSEY AND RHODE ISLAND CONSUMERS WHO HAVE PURCHASED GRANOLA BARS FROM THESE SHIPMENTS MAY RETURN THEM TO THE STORE FOR A FULL REFUND THE COMPANY SAID FRIDAY NO CUSTOMERS HAVE CALLED WITH COMPLAINTS ABOUT THE GRANOLA BARS QUAKER SPOKESMAN RON BOTTRELL SAID SATURDAY THE AFFECTED SHIPMENTS AREN'T LIKELY TO HAVE MADE IT TO STORE SHELVES YET HE SAID THIS IS SOMETHING THAT OUR OWN QUALITYCONTROL PEOPLE CAUGHT MR BOTTRELL SAID THE PROBLEM APPARENTLY OCCURRED DURING MANUFACTURING AND WAS NOT CAUSED BY TAMPERING HE SAID THE AFFECTED GRANOLA BARS BEAR THE CODE NUMBERS 3H22B 3H23B OR 3H24B CUSTOMERS SEEKING MORE INFORMATION ON THE RECALL MAY CALL QUAKER TOLLFREE AT 18002317000 9303150114 930315 MARKETING & MEDIA CALIFORNIA NEWSPAPER IS CLOSED BY TRIBUNE AFTER BIDDER BACKS OUT PALO ALTO CALIF THE PENINSULA TIMES TRIBUNE PUBLISHED ITS FINAL EDITION FRIDAY AFTER THE LAST BIDDER FOR THE DAILY WITHDREW FROM NEGOTIATIONS WITH ITS OWNER TRIBUNE CO OF CHICAGO THE 40000CIRCULATION AFTERNOON NEWSPAPER HAD PUBLISHED SEVEN DAYS A WEEK ON THE CALIFORNIA PENINSULA SOUTH OF SAN FRANCISCO AND SERVED READERS IN 10 COMMUNITIES TRIBUNE CO ALSO CLOSED PENINSULA COMMUNITY NEWSPAPERS A GROUP OF NINE WEEKLY NEWSPAPERS THAT COVERED THE REGION AND REACHED ABOUT 200000 HOUSEHOLDS TRIBUNE CO WHICH PUBLISHES THE CHICAGO TRIBUNE AND FIVE OTHER DAILY NEWSPAPERS AND OWNS THE CHICAGO CUBS BASEBALL TEAM HAD OFFERED THE CALIFORNIA NEWSPAPERS FOR SALE IN NOVEMBER THE COMPANY SAID IT HAD WORKED WITH BROKERS TO FIND A QUALIFIED BUYER BUT THAT ONLY TWO PARTIES EMERGED AS POSSIBILITIES THE LAST BIDDER WITHDREW LAST WEEK AFTER DISCUSSIONS WITH THE TIMES TRIBUNE UNIONS TRIBUNE CO SAID THE CHICAGO COMPANY HAD BOUGHT WHAT WERE THEN THE REDWOOD CITY TRIBUNE AND THE PALO ALTO TIMES IN 1978 AND COMBINED THEM AS THE PENINSULA TIMES TRIBUNE AT THE TIME IT CLOSED THE NEWSPAPER HAD 280 EMPLOYEES STAFFERS ARE TO BE PAID THROUGH APRIL 13 AND RECEIVE SEVERANCE PAYMENTS OF AS MUCH AS EIGHT WEEKS' PAY DEPENDING ON LENGTH OF SERVICE 9303150113 930315 INTERNATIONAL JAPAN'S GNP ROSE AT PACE OF 05 IN LATEST QUARTER BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S GROSS NATIONAL PRODUCT GREW AT AN INFLATIONADJUSTED ANNUALIZED RATE OF 05 IN THE THREE MONTHS TO DEC 31 SURPRISING MANY ECONOMISTS WHO HAD EXPECTED A SLIGHT DECLINE BUT GOVERNMENT ECONOMISTS CAUTIONED FRIDAY THAT JAPAN'S ECONOMY HAS YET TO HIT BOTTOM AND PRIVATE ANALYSTS STOOD BY THEIR BEARISH FORECASTS THE INCREASE ENABLED THE JAPANESE ECONOMY TO DODGE A SYMBOLIC BULLET JAPAN'S GNP THE MEASURE OF THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES CONTRACTED IN THE QUARTER TO SEPT 30 BUT BECAUSE GNP DIDN'T SHRINK AGAIN A SECOND QUARTER THE NATION ESCAPED RECESSION AS DEFINED BY A COMMON US STANDARD NOTABLY THOUGH JAPAN'S GROSS DOMESTIC PRODUCT SHRANK AT A REAL ANNUALIZED RATE OF 03 DURING THE THREE MONTHS TO DECEMBER FOR THE THIRD CONSECUTIVE QUARTERLY CONTRACTION MANY ECONOMISTS BELIEVE GDP WHICH EXCLUDES OFTEN VOLATILE NET INFLOWS OF INCOME FROM OVERSEAS IS A TRUER MEASURE OF THE ECONOMY'S HEALTH FOR THE 1992 CALENDAR YEAR THE GOVERNMENT SAID JAPAN'S INFLATIONADJUSTED GNP GREW A SCANT 15 FROM THE PREVIOUS YEAR THE LOWEST YEARLY RATE SINCE 1972 SHUNJI FUKINBARA A VICE MINISTER AT THE ECONOMIC PLANNING AGENCY SAID THE MODEST GROWTH FOR THE OCTOBERTODECEMBER PERIOD INDICATES THAT JAPAN'S ECONOMY REMAINS IN VERY SEVERE CONDITION AND ACKNOWLEDGED THAT JAPAN WILL BE HARDPRESSED TO MEET THE AGENCY'S OFFICIAL GROWTH TARGET OF 16 FOR THE FISCAL YEAR ENDING MARCH 31 BY THE AGENCY'S OWN CALCULATIONS THE ECONOMY WOULD HAVE TO RACE AHEAD AT A BREATHTAKING ANNUALIZED RATE OF MORE THAN 12 DURING THE CURRENT QUARTER TO MEET THE FULLYEAR TARGET SOME ECONOMISTS SAID GNP GROWTH WAS UNEXPECTEDLY STRONG IN THE OCTOBERTODECEMBER PERIOD BECAUSE THE GOVERNMENT REVISED DOWN ITS NUMBERS FOR THE PREVIOUS QUARTER ON FRIDAY THE ECONOMIC PLANNING AGENCY SAID GNP SHRANK AT A REAL ANNUAL RATE OF 24 BETWEEN JULY AND OCTOBER RATHER THAN BY 16 AS IT HAD REPORTED EARLIER DOMESTIC DEMAND SHRANK AT A REAL ANNUAL RATE OF 20 DURING THE OCTOBER TO DECEMBER PERIOD AS PERSONAL CONSUMPTION AND INVESTMENT BY PRIVATE BUSINESSES REMAINED WEAK DEMAND FOR JAPANESE GOODS FROM ABROAD HOWEVER CONTRIBUTED AN ANNUALIZED 25 TO GROWTH LEADING SOME ECONOMISTS TO ASSERT THAT JAPAN IS TRYING TO PUMP UP ITS EXPORT MACHINE THE STRATEGY IT HAS USED TO ESCAPE RECESSIONS IN THE PAST BUT MANY OTHER ECONOMISTS DISPUTED THAT NOTION AND SAID THE COUNTRY'S GROWING TRADE SURPLUS IS DUE MAINLY TO JAPAN'S WEAKENED APPETITE FOR IMPORTS THERE ARE NO ENGINES OF DOMESTIC GROWTH IN THIS ECONOMY SAID GEOFFREY BARKER AN ECONOMIST AT BARING SECURITIES JAPAN LTD THEY'VE ALL STALLED OUT 9303150112 930315 DIEBOLD EXPECTS TO HIT FIRSTQUARTER FORECASTS OF 40 CENTS A SHARE CANTON OHIO DIEBOLD INC IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL EARN 40 TO 45 CENTS A SHARE IN THE FIRST QUARTER OF 1993 AND 220 TO 230 A SHARE FOR THE FULL YEAR SAID THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT W MAHONEY FOR LAST YEAR'S FIRST QUARTER THE COMPANY HAD A LOSS OF 105 MILLION INCLUDING A 168 MILLION ACCOUNTING CHARGE OR A LOSS OF 52 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT ON REVENUE OF 122 MILLION FOR THE FULL YEAR THE MAKER OF AUTOMATED TELLER MACHINES AND PHYSICAL AND ELECTRONIC SECURITY SYSTEMS EARNED 233 MILLION INCLUDING A 179 MILLION ACCOUNTING CHARGE OR 115 A POSTSPLIT SHARE ON REVENUE OF 544 MILLION MR MAHONEY SAID IMPROVED FIRSTQUARTER EARNINGS REFLECT IN PART THE COMPANY'S EFFORTS TO REDUCE ITS SEASONALITY BY SHIFTING PRODUCTION FROM THE STRONG FOURTH QUARTER TO THE SEASONALLY WEAK FIRST QUARTER BUT HE ADDED THAT UNDERLYING REVENUE GROWTH OF 7 DURING 1992 IS LIKELY TO CONTINUE AT THE SAME PACE DURING 1993 HE ALSO SAID ORDER GROWTH AMONG THE COMPANY'S BUSINESSES IS LIKELY TO REMAIN AT 1992 LEVELS LAST YEAR THE COMPANY'S AUTOMATED TELLER MACHINE BUSINESS INCLUDING ITS NEW ISERIES MACHINE GREW 15 WORLDWIDE ELECTRONIC SECURITY EQUIPMENT ORDERS GREW 24 AND PHYSICAL SECURITY EQUIPMENT SUCH AS BANK VAULTS GREW 10 OVERALL ORDERS FOR PRODUCTS WHICH MADE UP 57 OF THE COMPANY'S 1992 SALES GREW AT AN AVERAGE 11 RATE WHILE SERVICE ORDERS WHICH MAKE UP THE REMAINING 43 OF SALES GREW AT 4 DURING 1992 9303150111 930315 TECHNOLOGY & HEALTH SOUTHERN CALIFORNIA EDISON STUDY FINDS NO WORKPLACE TIE BETWEEN CANCER EMF BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL IN A STUDY WITH BROAD IMPLICATIONS FOR THE ELECTRIC UTILITY INDUSTRY RESEARCHERS SAY THEY FOUND NO UNUSUAL CANCER LEVELS AMONG NEARLY 12000 SOUTHERN CALIFORNIA UTILITY WORKERS EXPOSED TO HIGH LEVELS OF ELECTROMAGNETISM FUNDED BY SOUTHERN CALIFORNIA EDISON CO THE STUDY PUBLISHED TODAY IN THE JOURNAL EPIDEMIOLOGY UNDERCUTS EARLIER REPORTS LINKING LEUKEMIA AND OTHER CANCERS TO WORKPLACE EXPOSURE TO ELECTROMAGNETIC FIELDS OR EMF EMF IS PRODUCED WHEN ELECTRIC CURRENT PASSES THROUGH A WIRE EARLIER STUDIES REPORTED ELEVATED CANCER LEVELS IN WORKERS AS DIVERSE AS MOTION PICTURE PROJECTOR OPERATORS ALUMINUM SMELTER WORKERS AND TELEPHONE LINEMEN TRIGGERING HEALTH CONCERNS AND LAWSUITS EXPERTS SAID THE LATEST STUDY DOES NOT RELATE TO OTHER WIDELY PUBLICIZED REPORTS LINKING EMF EXPOSURE TO ELEVATED LEVELS OF LEUKEMIA IN CHILDREN ONE SUCH STUDY DONE BY SWEDISH RESEARCHERS LAST YEAR FOUND THAT CHILDREN LIVING NEAR POWER LINES WERE UP TO FOUR TIMES MORE LIKELY TO DEVELOP LEUKEMIA THAN THOSE LIVING FARTHER AWAY FROM EMF SOURCES IT IS UNLIKELY OUR STUDY WILL SPEAK TO THE QUESTION OF CHILDREN'S LEUKEMIA AND EMF SAID JACK SAHL THE STUDY'S LEAD AUTHOR MR SAHL A SENIOR RESEARCH SCIENTIST AT SOUTHERN CALIFORNIA EDISON CO SAID THAT AMONG OTHER DIFFERENCES LEUKEMIA SEEMS TO DEVELOP FAR MORE RAPIDLY IN YOUNG CHILDREN THAN IN ADULTS IN THE LATEST STUDY RESEARCHERS SAID THEY EVALUATED HEALTH DATA FROM 36221 WORKERS WHO WERE EMPLOYED BY SOUTHERN CALIFORNIA FOR AT LEAST A YEAR BETWEEN 1960 AND 1988 THEY SAID THEY FOUND NO EVIDENCE OF UNUSUAL LEVELS OF LEUKEMIA BRAIN CANCER OR LYMPHOMA IN THE GROUP THE STUDY ALSO FAILED TO FIND ELEVATED CANCER LEVELS IN NEARLY 12000 EMPLOYEES CLASSIFIED AS HAVING ESPECIALLY HIGH OCCUPATIONAL EXPOSURE TO EMF SOUTHERN CALIFORNIA EDISON CALLED THE REPORT THE MOST COMPREHENSIVE AND BESTDESIGNED STUDY DONE TO DATE ON THIS TOPIC THE UTILITY SAID THE RESEARCH TEAM USED MORE SOPHISTICATED METHODS THAN PREVIOUS RESEARCHERS INCLUDING STUDYING WORKERS' FULL JOB HISTORIES AND TAKING ONSIGHT EMF MEASUREMENTS IT SAID THE STUDY'S WEAKNESSES INCLUDED THE STATISTICALLY SMALL NUMBER OF CANCERS IN THE SAMPLE AND THE FACT THAT OTHER EMFRELATED POSSIBILITIES SUCH AS BIRTH DEFECTS WEREN'T INCLUDED ALTHOUGH THE UTILITY SAID THE APPLICATION OF THE STUDY TO NONEDISON WORKERS IS UNCERTAIN MR SAHL SAID THIS WEAKENS THE ARGUMENT THAT THERE IS A CONNECTION BETWEEN EMF AND CANCER IN THE WORK ENVIRONMENT MR SAHL SAID THE RESEARCHERS WERE SURPRISED BY THE FINDINGS WE WERE SURPRISED THAT AFTER IMPROVING ON THE METHODOLOGY OF THE EARLIER STUDIES WE DIDN'T FIND A STRONGER RELATIONSHIP TO LEUKEMIA AND OTHER CANCERS OTHER RESEARCHERS SAID THEY TOO WERE SURPRISED THERE'S NO OBVIOUS EXPLANATION SAID DAVID SAVITZ AN EPIDEMIOLOGIST AT THE UNIVERSITY OF NORTH CAROLINA THREE YEARS AGO DR SAVITZ HEADED A RESEARCH TEAM THAT REPORTED FINDING ELEVATED LEVELS OF BRAIN CANCER IN ELECTRICAL WORKERS EXPOSED TO EMF DR SAVITZ SAID MR SAHL'S TEAM DID A WELLDESIGNED STUDY THAT WAS MORE COMPLETE THAN HIS RESEARCH WHICH RELIED ONLY ON INFORMATION FROM WORKERS' DEATH CERTIFICATES THIS MOVES MY THINKING A LITTLE BIT IN THE NEGATIVE DIRECTION HE SAID UTILITIES HAVE GENERALLY MAINTAINED NO CONCLUSIVE EVIDENCE EXISTS TO LINK EMF AND CANCER NONETHELESS FEARFUL OF THE POSSIBLE MEDICAL AND LEGAL FALLOUT FROM THE CONTROVERSY THE INDUSTRY NOW SPENDS OVER 1 BILLION ANNUALLY TO CUT EMF EXPOSURE 9303150110 930315 US SEEKS GERMAN LINK TO TRADE CENTER BOMBING SPECIAL TO THE WALL STREET JOURNAL BERLIN US AUTHORITIES HAVE ASKED THE BONN GOVERNMENT FOR HELP IN TRACING A POSSIBLE GERMAN CONNECTION TO THE WORLD TRADE CENTER BOMBING A SPOKESMAN FOR THE FEDERAL POLICE SAID FRIDAY US AUTHORITIES SAY MONEY FOR THE ATTACK WAS TRANSFERRED FROM EUROPE POSSIBLY GERMANY TO A NEW JERSEY JOINT BANK ACCOUNT HELD BY TWO ARRESTED SUSPECTS THE RECORD NEWSPAPER OF HACKENSACK NJ SAID THAT ON FEB 17 THE CHECKING ACCOUNT OF SUSPECT MOHAMMED SALAMEH AT NATIONAL WESTMINSTER BANK NJ POSTED A WIRE TRANSFER FOR 242087 FROM AN ACCOUNT AT WESTDEUTSCHE GENOSSENSCHAFTS ZENTRALBANK IN DUESSELDORF GERMANY THOMAS RINDSFUESSER A SPOKESMAN FOR THE GERMAN FEDERAL CRIMINAL POLICE IN WIESBADEN SAID US AUTHORITIES HAD SENT A REQUEST FOR ASSISTANCE TO THE JUSTICE MINISTRY IN BONN THAT WILL BE PASSED ON FURTHER TO THE APPROPRIATE JUSTICE AUTHORITIES IN DUESSELDORF MR RINDSFUESSER SAID HE SAID INVESTIGATORS THEN WOULD CONTACT THE BANK 9303150109 930315 ONTARIO TO BUILD A CASINO JUST ACROSS FROM DETROIT JUST ACROSS THE RIVER FROM DOWNTOWN DETROIT ONTARIO PROVINCE SAID IT PLANS TO BUILD A GAMBLING CASINO IN WINDSOR ONTARIO IN WHAT MAY BE THE FIRST OF A NUMBER OF GAMING HALLS ALONG THE US BORDER THE PROVINCIAL GOVERNMENT'S ANNOUNCEMENT FRIDAY ELICITED AN IMMEDIATE BIDDER TO RUN THE FACILITY DION ENTERTAINMENT A TORONTOBASED OPERATOR OF BINGO HALLS SAID IT HAD FORMED A STRATEGIC ALLIANCE WITH LAS VEGASBASED SHOWBOAT INC TO OPERATE THE CASINO A SPOKESMAN FOR SHOWBOAT HOWEVER DECLINED TO CONFIRM OR DENY AN ALLIANCE ONTARIO OFFICIALS SAID THEY EXPECT UP TO 140 MILLION CANADIAN DOLLARS US1124 MILLION TO ROLL INTO THE HARDPRESSED PROVINCIAL TREASURY AS A RESULT OF CASINORELATED BUSINESS AND THEY MADE NO SECRET OF THE EXPECTED SOURCE OF THOSE FUNDS LET THERE BE NO MISTAKE WINDSOR LIKE SO MANY OTHER ONTARIO BORDER COMMUNITIES HAS BEEN HARD HIT BY CROSS BORDER SHOPPING AND FREE TRADE SAID ONTARIO MINISTER OF CONSUMER AND COMMERCIAL RELATIONS MARILYN CHURLEY WE WANT SOME OF THOSE DOLLARS TO RETURN TO ONTARIO THE PLANNED 75000SQUAREFOOT CASINO WILL BE GOVERNMENTOWNED AND LOCATED AT THE RIVER'S EDGE IN WINDSOR WHERE MS CHURLEY PROMISED A MAGNIFICENT VIEW OF THE DETROIT SKYLINE FOR THE AS MANY AS 12000 GAMBLERS EXPECTED DAILY 9303150108 930315 INTERNATIONAL USRUSSIAN STUDY OF ANTHRAX OUTBREAK FINDS PROOF OF A COVERUP BY SOVIETS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL A STUDY BY RUSSIAN AND US PATHOLOGISTS PROVIDES THE FIRST CONCLUSIVE SCIENTIFIC PROOF THAT SOVIET AUTHORITIES REPEATEDLY LIED FOR YEARS ABOUT THE CAUSE OF A DEADLY OUTBREAK OF ANTHRAX AMONG HUMANS IN THE RUSSIAN CITY OF SVERDLOVSK IN 1979 AN ANALYSIS OF ORGANS AND TISSUE SAMPLES FROM 42 OF THE VICTIMS PUBLISHED TODAY IN PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES SHOWS THAT THEY DIED FROM INHALING AND NOT INGESTING THE BACTERIA IT IS A CRUCIAL DISTINCTION THAT GOES SOME WAY TOWARD SOLVING AN INCIDENT THAT BECAME ONE OF THE BIGGEST MYSTERIES OF THE COLD WAR AND A MAJOR POINT OF FRICTION BETWEEN WASHINGTON AND MOSCOW EVEN TODAY MONTHS AFTER THE COLLAPSE OF THE USSR AUTHORITIES IN DEMOCRATIC RUSSIA STILL HAVEN'T EXPLAINED EXACTLY WHAT HAPPENED ANTHRAX IS AN ANIMAL DISEASE THAT RARELY AFFLICTS HUMANS BUT SOME NATIONS HAVE EXPERIMENTED WITH IT AS A POSSIBLE BIOLOGICAL WARFARE AGENT FOLLOWING REPORTS OF THE 1979 OUTBREAK IN WHICH AT LEAST 64 PEOPLE WERE KILLED THE US MAINTAINED IT WAS CAUSED BY AN AIRBORNE LEAK OF ANTHRAX SPORES FROM A MILITARY LABORATORY IN SVERDLOVSK WASHINGTON ALLEGED THAT A LAB INSIDE THE CITY'S HEAVILY GUARDED MILITARY COMPOUND 19 WAS CONDUCTING GERMWARFARE EXPERIMENTS IN VIOLATION OF A 1972 CONVENTION ON BIOLOGICAL WEAPONS THE SOVIETS RIDICULED THE US ALLEGATIONS AND CLAIMED THAT THE VICTIMS HAD DIED AFTER EATING ANTHRAXTAINTED MEAT BOUGHT ON THE BLACK MARKET IN 1988 IN AN APPARENT SHOW OF THE OPENNESS BEING PROPOUNDED BY THENPRESIDENT MIKHAIL GORBACHEV THREE SENIOR SOVIET OFFICIALS EVEN TRAVELED TO THE US PROVIDING MANY DETAILS AIMED AT BOLSTERING THE OFFICIAL SOVIET VERSION SOME MEMBERS OF THE US ACADEMIC ESTABLISHMENT FOUND THE PRESENTATIONS PLAUSIBLE IN FACT AS RUSSIAN PRESS REPORTS AND A 1991 INVESTIGATION BY THE WALL STREET JOURNAL HAVE SHOWN THE SOVIET VERSION HAD MANY HOLES IN IT ONE OF THE BIGGEST WAS THE MEDICAL EVIDENCE THE KGB REMOVED AUTOPSY REPORTS AND MOST OF THE OTHER DOCUMENTARY EVIDENCE ABOUT THE OUTBREAK IT COULD FIND INCLUDING MEDICAL AND VETERINARY RECORDS BUT TWO PATHOLOGISTS WHO CONDUCTED POSTMORTEM EXAMINATIONS OF MANY OF THE VICTIMS IN A SVERDLOVSK HOSPITAL FAINA A ABRAMOVA AND LEV M GRINBERG SECRETLY KEPT SOME ORGANS AND MICROSCOPIC SLIDES WHICH PROVIDE THE MATERIAL FOR THE PUBLISHED PAPER THE TWO PATHOLOGISTS ARE THE KEY AUTHORS OF THE PAPER MRS ABRAMOVA AND MR GRINBERG MET LAST YEAR WITH SEVERAL US SCIENTISTS WHO WERE ALLOWED TO VISIT SVERDLOVSK NOW CALLED EKATERINBURG AND SHARED THEIR HIDDEN EVIDENCE IN A TELEPHONE INTERVIEW DAVID H WALKER PROFESSOR OF PATHOLOGY AT THE UNIVERSITY OF TEXAS AT GALVESTON AND A COAUTHOR THE STUDY PAID TRIBUTE TO THEIR COURAGE IT'S AMAZING THERE ARE THESE PEOPLE WITH SUCH HIGH INTEGRITY WHO SAT THERE HOLDING ON TO THE TRUTH THROUGH ALL THESE YEARS HE SAID THE PUBLISHED PAPER ESSENTIALLY SETS OUT THE ORIGINAL FINDINGS OF THE TWO RUSSIANS IN US ACADEMIC FORM MOST IMPORTANT IS THE FINDING THAT THE LYMPH NODES OF THE MEDIASTINUM BETWEEN THE LUNGS WERE INFECTED IN ALL 42 CASES AS WOULD BE EXPECTED IF THE ANTHRAX INFECTION ENTERED THROUGH THE RESPIRATORY TRACT THE FINDINGS ARE ALSO DUE TO BE PUBLISHED IN RUSSIA A TESTIMONY TO THE CHANGES THERE SINCE THE COLLAPSE OF THE AUTHORITARIAN SOVIET SYSTEM RUSSIAN PRESIDENT BORIS YELTSIN HAS PREVIOUSLY SAID THAT THE ANTHRAX OUTBREAK WAS CAUSED BY A LEAK FROM THE MILITARY COMPOUND BUT MANY SIGNIFICANT DETAILS ABOUT THE INCIDENT REMAIN UNKNOWN BOTH THE SOVIET ARMY WHICH RAN THE COMPOUND AND THE KGB HAVE SO FAR REFUSED TO GIVE ANY INFORMATION AND THE US DELEGATION WHILE ABLE TO TAKE SOIL SAMPLES AND MEET WITH SOME OF THE PEOPLE INVOLVED RAN INTO OBSTACLES MATTHEW S MESELSON A BIOCHEMISTRY PROFESSOR AT HARVARD UNIVERSITY WHO LED THE DELEGATION SAID SOME RUSSIAN OFFICIALS IN EKATERINBURG THE AMERICANS WANTED TO SEE WERE EITHER UNAVAILABLE OR UNWILLING TO TALK MEMBERS OF THE DELEGATION WERE ALSO UNABLE TO VISIT ONE KEY DISTRICT TO THE SOUTH OF THE CITY AMONG THE QUESTIONS THAT MUST STILL BE RESOLVED ARE WHAT THE MILITARY LABORATORY THAT IS PRESUMED TO BE THE SOURCE OF THE OUTBREAK WAS ACTUALLY DOING AT THE TIME AND WHETHER ITS ACTIVITY BREACHED THE BIOLOGICALWEAPONS CONVENTION IT'S REALLY IMPORTANT FOR THE RUSSIANS THEMSELVES TO TELL PROF MESELSON SAID 9303150107 930315 SOUTH KOREA'S BIG HANDS' FACE SCRUTINY AGAIN PRESIDENT MAY IMPLEMENT STRICTER DISCLOSURE RULES FOR HIDDEN INVESTORS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA FOR THE THIRD TIME IN LITTLE MORE THAN A DECADE A KOREAN PRESIDENT IS TRYING TO EXPOSE THE BIG HANDS THAT HEAVILY INFLUENCE THE NATION'S FINANCIAL MARKETS THE SOCALLED BIG HANDS WEALTHY INDIVIDUALS WHO INVEST IN KOREA'S STOCK PROPERTY AND MONEY MARKETS UNDER ASSUMED NAMES COST THE NATION MUCH IN TERMS OF LOST TAX REVENUE THOUGH ANALYSTS SAY PRECISE FIGURES AREN'T AVAILABLE THEY GENERALLY AGREE THAT THESE INVESTORS ACCOUNT FOR 5 TO 10 OF INVESTMENT IN THE LOCAL STOCK MARKET AND ABOUT 5 OF BANKS' CUSTOMER DEPOSITS BUT RECENT INDICATIONS FROM THE ADMINISTRATION OF PRESIDENT KIM YOUNG SAM THAT HE WANTS TO IMPOSE MORESTRINGENT DISCLOSURE REQUIREMENTS TO MAKE SUCH INVESTMENTS HARDER TO HIDE HAS SENT SHARE PRICES TUMBLING AND SOME BUSINESS GROUPS ARE NERVOUSLY COUNSELING RESTRAINT THIS WILL BE A GOOD THING IN THE LONG TERM BUT IN THE SHORT TERM IT'S GOING TO BE VERY TROUBLESOME SAYS LEE HAN KOO HEAD OF THE DAEWOO RESEARCH INSTITUTE MY WORRY IS THAT THERE WILL BE A CAPITAL OUTFLOW TO FOREIGN COUNTRIES AND A BIG SHIFT FROM DEPOSITS TO CASH THAT WILL BE DIFFICULT TO TRACE MR KIM'S PREDECESSOR ROH TAE WOO AND BEFORE HIM CHUN DOO HWAN VOWED TO TIGHTEN DISCLOSURE LAWS BUT BACKED OFF WHEN MARKETS REACTED NEGATIVELY BUT MR KIM WHO MADE ONLY VAGUE COMMITMENTS TO ECONOMIC LIBERALIZATION IN HIS CAMPAIGN IS EMERGING AS A DISCIPLE OF REFORM HE AND HIS ADVISERS HAVE MADE THE IMPLEMENTATION OF REALNAMES ACCOUNTING LAWS THE CORNERSTONE OF A PROGRAM TO OVERHAUL KOREA'S OPAQUE AND CENTRALIZED FINANCIAL SYSTEM AND WEED OUT CORRUPTION BRED BY UNDISCLOSED ACCOUNTS HIS EARLY SHOT AT INTRODUCING MORE FORTHRIGHT ACCOUNTING HAS FUELED HOPE AMONG REFORMERS THAT HE WILL ALSO ACCELERATE A PLAN BEGUN IN THE ROH ADMINISTRATION TO DEREGULATE KOREA'S CORE FINANCIAL SYSTEM I WOULDN'T HAVE ANTICIPATED A SIGNIFICANT INCREASE IN THE PACE OF REFORM SAYS PAUL MUTHER GENERAL MANAGER OF FIRST NATIONAL BANK OF CHICAGO IN SEOUL BUT EVENTS AND MEETINGS IN WHICH I'VE PARTICIPATED RECENTLY HAVE SUGGESTED WE MIGHT SEE A DRAMATIC ACCELERATION LEGISLATION EMPOWERING THE PRESIDENT TO DRAFT AND IMPLEMENT A REALNAMES ACCOUNTING SYSTEM HAS BEEN IN PLACE SINCE THE EARLY 1980S BUT VESTED INTERESTS HAVE STIFLED THE MATTER ACCOUNTS HELD UNDER PSEUDONYMS ARE POPULAR VEHICLES FOR POOLING POLITICALCAMPAIGN CONTRIBUTIONS FULL DISCLOSURE ALSO COULD REVEAL SOME CONSPICUOUS WEALTH AMONG KOREA'S LEADING CIVIL SERVANTS AND MANY COMPANY OFFICIALS USE SUCH ACCOUNTS TO EXTEND THEIR EQUITY STAKES IN LISTED COMPANIES BEYOND THE 35 LIMIT ALLOWED TO A SINGLE INVESTOR ACCORDING TO MR LEE BANK ACCOUNTS REGISTERED UNDER ASSUMED NAMES OR NOMINEES IN 1991 AMOUNTED TO SEVEN TRILLION TO 12 TRILLION WON 88 BILLION TO 151 BILLION OR 25 TO 44 OF KOREA'S TOTAL DEPOSIT BASE OF 270 TRILLION WON MR LEE ESTIMATES THAT MANDATORY REALNAME ACCOUNTING COULD TRIGGER A FLIGHT OF 25 TO 4 OF THE NATION'S MONEY SUPPLY TO OFFSHORE ACCOUNTS AND PURCHASES OF ART AND ANTIQUES THAT WOULD COME AT A PARTICULARLY BAD TIME FOR THE KOREAN ECONOMY WHICH IS TAKING A BREATHER FROM ITS ROBUST GROWTH RATES OF THE 1970S AND 1980S GROSS NATIONAL PRODUCT OR TOTAL OUTPUT OF GOODS AND SERVICES IS EXPECTED TO GROW 5 THIS YEAR DOWN FROM A NEARLY DOUBLEDIGIT ANNUAL AVERAGE FOR THE PAST DECADE MEANWHILE THE KOREA STOCK EXCHANGE COMPOSITE INDEX HAS SHED NEARLY 7 SINCE MR KIM TRUMPETED HIS INTENTION TO REFORM KOREA'S FINANCIAL SYSTEM IN HIS INAUGURAL ADDRESS LATE LAST MONTH STOCKBROKERS SAY THAT TWO TRILLION TO EIGHT TRILLION WON OF THE STOCK MARKET'S 80TRILLIONWON CAPITALIZATION IS HELD BY INVESTORS USING NOMINEES OR FALSE NAMES 9303150106 930315 PACIFIC ENTERPRISES UNIT EXPANDS ISSUE FILING DEBT REDEMPTION SET LOS ANGELES SOUTHERN CALIFORNIA GAS CO THE MAIN OPERATING UNIT OF PACIFIC ENTERPRISES BOOSTED BY 500 MILLION THE TOTAL OF FIRST MORTGAGE BONDS COVERED BY A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION AND SAID IT WILL REDEEM 100 MILLION OF EXISTING DEBT SEPARATELY MOODY'S INVESTORS SERVICES INC IS REVIEWING ITS BA3 RATING ON PACIFIC ENTERPRISES' PREFERRED STOCK FOR POSSIBLE UPGRADE THE RATING FIRM SAID ITS REVIEW IS PROMPTED BY PACIFIC ENTERPRISES' SALE OF ITS DIVERSIFIED ACTIVITIES AS WELL AS PROSPECTS FOR IMPROVEMENT IN ITS FINANCIAL POSITION THE RATINGS OF SOUTHERN CALIFORNIA GAS AREN'T CURRENTLY UNDER REVIEW MOODY'S SAID SOUTHERN CALIFORNIA GAS SAID PROCEEDS OF BONDS ISSUED UNDER THE NEWLY EXPANDED SHELF REGISTRATION WILL BE USED TO REFUND EXISTING DEBT EXPAND PLANT AND FACILITIES AND FOR GENERAL CORPORATE PURPOSES THE 500 MILLION ADDITION MADE IN AN SEC FILING BRINGS THE TOTAL COVERED BY THE SHELF REGISTRATION TO 575 MILLION SOUTHERN CALIFORNIA GAS SAID SEPARATELY THAT IT WILL REDEEM ALL 100 MILLION PRINCIPAL AMOUNT OF 9 FIRST MORTGAGE BONDS SERIES T DUE 2016 THE COMPANY SAID THE REDEMPTION WILL BE EFFECTIVE APRIL 15 AT 10613 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9303150104 930315 SPEAR UNIT FACES A PROCEEDING SAN DIEGO SPEAR FINANCIAL SERVICES INC SAID ITS JAMES MITCHELL & CO INSURANCE AND MUTUALFUNDS SALES UNIT WAS NOTIFIED OF AN ADMINISTRATIVE PROCEEDING BY THE FLORIDA DEPARTMENT OF INSURANCE SPEAR FINANCIAL SAID THE REGULATORY AGENCY ALLEGES THAT SOME OF THE UNIT'S ACTIVITIES VIOLATE FLORIDA LAW INCLUDING THOSE DEALING WITH A FINANCIAL INSTITUTION'S ASSOCIATION WITH INSURANCE AGENTS SPEAR FINANCIAL SAID IT BELIEVES THE FLORIDA AGENCY'S ALLEGATIONS ARE WITHOUT MERIT 9303150103 930304 REVIEW & OUTLOOK EDITORIAL NAFTA IN THE BALANCE ASK ANYONE IN THE ADMINISTRATION THE PRESIDENT MICKEY KANTOR RON BROWN LLOYD BENTSEN WHETHER THEY SUPPORT THE NORTH AMERICAN FREE TRADE AGREEMENT WITH MEXICO AND THE ANSWER QUICKLY COMES BACK YES YOU BET ABSOLUTELY THEN ASK ANYONE WHO HAS HEARD THESE ASSERTIONS SAY TRADEORIENTED AMERICAN BUSINESS TYPES OR THE MEXICANS WHETHER THEY BELIEVE ANY OF IT AND THE ANSWER THAT CRAWLS OUT OF THEM IS WELLLL UH GOSH WE'D LIKE TO BELIEVE IT THIS IS WHAT IS KNOWN IN POLITICS AS A CREDIBILITY PROBLEM IT'S THE RESULT OF THE CRAZY QUILT OF CONSTITUENCIES THAT THIS ADMINISTRATION FEELS COMPELLED TO SERVICE BUT LETTING NAFTA FLOAT ONTO THE ADMINISTRATION'S LENGTHENING LIST OF UNDECIDEDS CARRIES LARGE RISKS IF NAFTA FALTERS OR EVEN FAILS IT COULD CAUSE AN IRREVOCABLE RIFT IN RELATIONS WITH AN IMPORTANT NEIGHBOR WHOSE FUTURE IS GOING TO BE EITHER VERY DYNAMIC OR VERY VOLATILE IT COULD ALSO UNDERMINE OR DERAIL SOME OF THE DRAMATIC ECONOMIC SOCIAL AND POLITICAL PROGRESS MADE BY MEXICO UNDER PRESIDENT CARLOS SALINAS'S LEADERSHIP AND BEYOND MEXICO IT WOULD DEMORALIZE LATIN AMERICA GENERALLY WHERE DEMOCRACY'S RECENT SUCCESSES DEPEND ON DELIVERING ECONOMIC BENEFITS DESPITE THE CLINTON ADMINISTRATION'S PUBLIC ASSURANCES WE'RE TROUBLED BY WHAT THE DEMOCRATS ARE ACTUALLY DOING WHEN GIVEN THE OPPORTUNITY TO SHAPE POLICY AROUND THE TRADE AGREEMENT LAST THURSDAY CONGRESSMAN JOHN LAFALCE OF NEW YORK CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE HELD A HEARING TENDENTIOUSLY TITLED MEXICO'S POLITICAL AND LEGAL ENVIRONMENT FOR DOING BUSINESS ONLY ONE OF THE SIX WITNESSES GEORGETOWN UNIVERSITY PROFESSOR JOHN BAILEY SUPPORTED NAFTA IN A CREDIBLE WAY THE OTHER WITNESSES FROM MEXICO AND THE US WERE WELLKNOWN BASHERS OF NAFTA OR PRESIDENT SALINAS CALL ME NAIVE PROFESSOR BAILEY TOLD US LATER BUT I THOUGHT THERE WOULD BE MORE OF AN EXCHANGE OR SOME KIND OF BALANCE AS IT TURNED OUT MINE WAS THE LONE VOICE OF DISSENT IN WHAT TURNED OUT TO BE A NAFTA LYNCH COMMITTEE THE DEMOCRATIC LYNCH MOB COULD GET BIGGER ON MARCH 11 THE WAYS AND MEANS TRADE SUBCOMMITTEE WILL HOLD ITS OWN HEARING ON NAFTA THE HEARING'S PURPOSE THE PANEL ANNOUNCED IS TO RECEIVE TESTIMONY ON THE THREE SUPPLEMENTAL AGREEMENTS TO DEAL WITH ENVIRONMENTAL AND LABOR CONCERNS AND POSSIBLE IMPORT SURGES THAT PRESIDENT CLINTON HAS STATED ARE NECESSARY BEFORE PROCEEDING WITH THE NAFTA IMPLEMENTING LEGISLATION NO DOUBT THE VIEWS OF THE SIERRA CLUB AND AFLCIO HAVE NOT BEEN ADEQUATELY EXPLORED THIS IS WHY PEOPLE ARE WORRIED WHY AT THIS JUNCTURE MICKEY KANTOR'S ASSURANCES DON'T CARRY MUCH WEIGHT THE SUPPLEMENTAL AGREEMENTS EFFORT SUGGESTS IMPLICITLY BUT STRONGLY THAT THE MEXICAN GOVERNMENT CAN'T BE TRUSTED TO DELIVER PROGRESS ON ITS OWN INITIATIVE AT THIS LATE STAGE THIS IS PRETTY INSULTING MOST SERIOUS ANALYSTS OF MEXICO AGREE THAT PRESIDENT SALINAS HAS GONE FURTHER IN MODERNIZING MEXICO'S SOCIAL AND ECONOMIC STRUCTURE THAN ANY PRESIDENT IN THIS CENTURY THE TRANSFORMATION IS STILL UNDER WAY BUT EVEN A PARTIAL LIST OF WHAT HAS BEEN DONE IS IMPRESSIVE ENOUGH OPENING THE ECONOMY TO WORLD COMPETITION PRIVATIZING STATE BANKS AND OTHER GOVERNMENT HOLDINGS BREAKING THE OIL UNIONS' STRANGLEHOLD ON THE ENERGY SECTOR DEREGULATING CAPITAL MARKETS MODERNIZING THE COUNTRY'S INFRASTRUCTURE BALANCING THE GOVERNMENT'S FISCAL ACCOUNTS ACCEPTING ELECTORAL DEFEATS IN GUBERNATORIAL ELECTIONS AND RESPONDING ALBEIT TOO SELECTIVELY TO GRASSROOTS POLITICAL COMPLAINTS THE MOMENTOUS DECISION TO REPLACE THE EJIDO SYSTEM OF STATE COMMUNAL FARMS WITH PRIVATE OWNERSHIP WAS THE EQUIVALENT IN POLITICAL COURAGE OF A US PRESIDENT PRIVATIZING THE POSTAL SERVICE MEXICO'S OPEN MARKET POLICIES HAVE RESULTED IN A 58 INCREASE IN GDP PER CAPITA SINCE 1988 THIS SIZABLE INCREASE IN MEXICANS' DISPOSABLE INCOME HAS MADE THEM BIGGER CONSUMERS OF US GOODS GROWING TO 406 BILLION IN 1992 FROM 206 BILLION IN 1988 AND BIGGER SPENDERS ON ENVIRONMENTAL CONCERNS 18 BILLION FOR 1991 AN 18FOLD INCREASE OVER 1988 IN OTHER WORDS MEXICO HAS SHOWN PROGRESS IN PRECISELY THE TWO BASIC AREAS OF COMPLAINT MADE BY ANTINAFTA LOBBYISTS AND OF COURSE THE AGREEMENT ITSELF WOULD CONTINUE THIS TREND ULTIMATELY NAFTA'S FATE IS A MATTER OF LEADERSHIP AND VISION THE FREE TRADE AGREEMENT MADE IT THIS FAR BECAUSE OF SEVERAL YEARS OF UNPRECEDENTED COOPERATION BETWEEN THE NEGOTIATING PARTNERS CENTURIES OF DISTRUST AND ANTAGONISM BETWEEN MEXICO AND THE US WERE BEING WIPED AWAY BY THE DEVELOPMENT OF SERIOUS BUSINESS AND GOVERNMENTAL PARTNERSHIPS NOW THAT VISION IS THREATENED BY THE CAPRICIOUSNESS OF A FEW SPECIAL INTEREST GROUPS THE IMMEDIATE QUESTION IS WHETHER BILL CLINTON FOR ONCE CAN EXTRACT HIMSELF FROM THESE CONSTITUENCIES AND PURSUE THE LARGER NATIONAL INTEREST SEE RELATED LETTER LETTERS TO THE EDITOR NAFTA MEXICO AND HUMAN RIGHTS WSJ MARCH 15 1993 9303040065 9303150102 930315 GERMAN STATES SEEK TOUGHER GUIDELINES FOR CHEMICAL INDUSTRY WIESBADEN GERMANY AMID A SERIES OF ACCIDENTS AT HOECHST AG GERMAN AUTHORITIES ARE MOVING TO PLACE TIGHTER CONTROLS AND GUIDELINES ON THE NATION'S CHEMICAL INDUSTRY EVEN AS AN EQUIPMENT FAILURE AT HOECHST'S WIESBADEN UNIT ON FRIDAY SPILLED 100 LITERS OR 26 GALLONS OF A POISONOUS XYLOLESCOPAL SOLUTION INTO THE RHINE RIVER HESSE'S ENVIRONMENT MINISTRY SET IN MOTION A PROGRAM TO EXAMINE SOME 100 CHEMICAL SITES THROUGHOUT THAT STATE TO IDENTIFY ANY SAFETY DEFICIENCIES BY THE END OF MAY IN TANDEM THE NEIGHBORING STATE OF LOWER SAXONY ANNOUNCED FRIDAY THAT IT WILL CONDUCT A SIMILAR STUDY OF CHEMICAL FACILITIES IN ITS TERRITORY HESSE ENVIRONMENT MINISTER JOSCHKA FISCHER LAST WEEK PROPOSED A 10POINT PROGRAM OUTLINING THOROUGH EXAMINATIONS SECURITY STANDARDS EMERGENCYACTION PLANS AND PUBLICINFORMATION POLICIES THE STATE CHEMICAL INDUSTRY FEDERATION HAS SAID IT WILL COOPERATE WITH THIS PROGRAM AND MAKE WHATEVER SECURITY IMPROVEMENTS DEEMED NECESSARY WITHOUT REGARD FOR THE COST THESE STEPS MARK THE WIDENING CONCERN OVER SAFETY IN THE CHEMICAL INDUSTRY SINCE A MAJOR ACCIDENT AT HOECHST THREE WEEKS AGO WHERE SOME 10 TONS OF CHEMICALS INCLUDING CARCINOGENIC SUBSTANCES SPEWED INTO THE AIR OVER A FRANKFURT SUBURB REQUIRING AN EXTENSIVE CLEANUP ACTION SINCE THAT ACCIDENT HOECHST FACILITIES HAVE EXPERIENCED AT LEAST FOUR MORE INCIDENTS CAUSING VARYING DEGREES OF ENVIRONMENTAL DAMAGE ASKED FOR AN EXPLANATION OF THE DISTURBING FREQUENCY OF RECENT ACCIDENTS A HOECHST SPOKESMAN ASCRIBED IT TO UNFORTUNATE COINCIDENCE OFFICIALS AT THE GERMAN CHEMICAL FEDERATION MEANWHILE BRISTLED AT THE SUGGESTION THAT THE PROBLEMS AT HOECHST REFLECT AN INDUSTRYWIDE PROBLEM THEY INSIST THAT IT WAS STRICTLY A HOECHST AFFAIR LAST WEEK HOECHST ANNOUNCED THAT IT WILL CLOSE FOUR OF ITS CHEMICAL FACTORIES IN THE FRANKFURT AREA BECAUSE OF COST INCREASES STEMMING PRIMARILY FROM ENVIRONMENTAL AND PERSONNEL MATTERS MEANWHILE OFFICIALS AT GERMAN COMPETITORS BASF AG AND BAYER AG SAID THEY VIEWED THE HOECHST ACCIDENTS AS AN INDUSTRYWIDE PROBLEM THAT WILL BRING THEM UNDER TOUGHER SCRUTINY 9303150101 930315 LETTERS TO THE EDITOR WATCH OUT BIG GUYS SOMEONE'S ON YOUR TAIL IN REGARD TO TIM W FERGUSON'S MARCH 9 BUSINESS WORLD COLUMN AIRLINE ASKS GOVERNMENT FOR ROOM TO KEEP RISING OPED PAGE ON FEB 1 MY WIFE AND I HAD TO FLY TO OHIO FROM SAN ANTONIO I CALLED AMERICAN AIRLINES WHICH QUOTED ME A PRICE OF 3000 ANOTHER MAJOR AIR CARRIER QUOTED A PRICE OF 1120 SOUTHWEST AIRLINES' PRICE 450 ALL THESE PRICES WERE FOR A ROUND TRIP FOR TWO WE CHOSE SOUTHWEST SOUTHWEST WAS IDENTIFIED AS ONE OF THE NATION'S TOP 10 EMPLOYERS IN THE BOOK THE 100 BEST COMPANIES TO WORK FOR IN AMERICA PUBLISHED JAN 22 IT PLACED NO 1 ON THE DEPARTMENT OF TRANSPORTATION'S RATINGS OF CUSTOMER SERVICE FEWEST COMPLAINTS ONTIME PERFORMANCE AND BAGGAGE HANDLING A DOZEN YEARS AGO I WAS DEPLANING FROM A SOUTHWEST FLIGHT IN SAN ANTONIO IT WAS LATE IN THE EVENING STANDING AGAINST THE WALL IN THE JETWAY WAS THE AIRLINES' CEO HERB KELLEHER ARMS FOLDED OBSERVING HOW MANY OTHER AIRLINE CEOS DO THAT ONE MAJOR AIRLINE REP STATED WE DON'T CONSIDER SOUTHWEST AIRLINES A COMPETITOR WITH THE MAJORS' MY THOUGHT IS SEARS DIDN'T THINK SAM WALTON WAS A THREAT 9303150100 930315 CHINA DRAFTING LAW TO COVER SECURITIES FIELD INDUSTRY EXECUTIVES PRAISE LATEST VERSION BUT SAY IT HAS SOME PROBLEMS BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG NOW IN THE FINAL DRAFTING STAGES CHINA'S PROPOSED SECURITIES LAW WOULD BRING THE COUNTRY'S EXCHANGES UNDER A COMPREHENSIVE REGULATORY FRAMEWORK COVERING ISSUES FROM INVESTMENT FUNDS TO INSIDER DEALING TO OVERTHECOUNTER TRADING A SPECIAL SECURITIESLAW DRAFTING COMMITTEE SET UP UNDER THE AUSPICES OF CHINA'S NATIONAL PEOPLE'S CONGRESS PRESENTED THE FOURTH AND MOST RECENT DRAFT DURING A WEEKEND CONFERENCE IN HONG KONG ALTHOUGH SECURITIES INDUSTRY EXECUTIVES HERE PRAISED IT AS A FINE EARLY ATTEMPT MANY EXPRESSED CONCERN THAT IT IS TOO GENERAL IN CERTAIN AREAS ANOTHER DOUBT SHARED BY SOME DRAFTERS FOCUSED ON WHETHER ITS PROVISIONS COULD BE EFFECTIVELY ENFORCED LI YINING THE COMMITTEE'S CHAIRMAN SAID AT THE CONFERENCE ON SATURDAY THAT THE DRAFT LAW AIMS TO BE SPECIFIC WHERE WE COULD AND BROAD WHERE NECESSARY THE 131ARTICLE DRAFT WHICH IS EXPECTED TO GO TO THE NATIONAL PEOPLE'S CONGRESS AT THE END OF THE MONTH AFTER DRAFTERS INCORPORATE SUGGESTIONS GARNERED IN HONG KONG BORROWS FROM SECURITIES LAWS IN THE US JAPAN KOREA SINGAPORE TAIWAN AND HONG KONG BUT WE ALSO HAD TO CONSIDER THE PRACTICAL SITUATION IN CHINA AND ITS SPECIAL CHARACTERISTICS HE ADDED TRUE TO ITS GOAL OF PRESERVING OPENNESS FAIRNESS EFFICIENCY AND UNITY IN THE MARKET AND PROTECTING THE LEGAL RIGHTS OF INVESTORS THE DRAFT WHICH THE CONGRESS PROBABLY WON'T CONSIDER UNTIL AUGUST AFTER SEVERAL MORE REVISIONS DEVOTES MUCH EFFORT TO PROTECTING THE INTERESTS OF MINORITY SHAREHOLDERS ONE ARTICLE FOR EXAMPLE REQUIRES THAT A PARTY BUYING 30 OR MORE OF A LISTED COMPANY'S SHARES MAKE AN OFFER FOR THE REMAINING SHARES ON THE MARKET SIMILARLY SHAREHOLDERS WHO HOLD 5 OR MORE OF A COMPANY MUST INFORM STOCKMARKET OFFICIALS IF THEY PLAN TO SELL 2 OR MORE WITHIN 20 TRADING DAYS THIS IS A PROVISION WITH CHINESE CHARACTERISTICS BECAUSE THE STATE OWNS 50 TO 70 OF SHARES IN MOST LISTED COMPANIES MANY LOCAL INVESTORS FEAR THAT IF THE STATE DUMPS THEM SHARE PRICES WILL PLUNGE SAYS ONE COMMITTEE MEMBER WHO ASKED NOT TO BE IDENTIFIED THE DRAFT LAW ALSO CONTAINS DETAILED DEFINITIONS OF WHAT CONSTITUTES INSIDER TRADING SUCH AS DEALING ON UNDISCLOSED NEWS ABOUT IMPORTANT CONTRACTS THE DRAFT MENTIONS QUITE A LOT ON INSIDER TRADING I THINK IT'S MORE SPECIFIC THAN HONG KONG'S SAYS EDWARD CHAN MANAGING DIRECTOR AT ORIENTAL PATRON MANAGEMENT LTD THE MERCHANT BANKING ARM OF KWOK HING SECURITIES CO THE PROPOSED LAW HOWEVER WOULDN'T PROHIBIT GOVERNMENT AND COMMUNIST PARTY CADRES FROM TRADING IN SHARES WHILE MR LI WHO ALSO TEACHES ECONOMICS AT BEIJING UNIVERSITY SAYS THAT THIS IS A VALID CONCERN WE SUGGEST IT SHOULD BE REGULATED IN THE LAW FOR CIVIL SERVANTS BUT EVEN WHILE THE DRAFT LAW INCLUDES SOME PENALTIES AGAINST INSIDER DEALING AND ILLEGAL TRADING BY SECURITIES COMPANIES FOR EXAMPLE A BROKERAGE FIRM FOUND TO ENGAGE IN SUCH PRACTICE COULD BE FINED FIVE TIMES ITS ILLEGAL EARNINGS DRAFTERS CONCEDE THAT RELEVANT CRIMINAL LAWS AREN'T TOUGH ENOUGH THOSE LAWS WOULD BE AMENDED ONCE THE SECURITIES LAW IS APPROVED BUT WHILE SOME DRAFTERS HOPE FOR A MAXIMUM SEVENYEAR JAIL SENTENCE AND FINES OF UP TO SEVERAL MILLION YUAN IT'S NOT VERY LIKELY CONCEDES A COMMITTEE MEMBER CURRENTLY MAXIMUM FINES RUN AT 20000 YUAN TO 30000 YUAN 3420 TO 5140 TO SOME EXTENT THE EFFECTIVENESS OF ENFORCEMENT WILL DEPEND ON THE ABILITY OF THE CHINA SECURITIES REGULATORY COMMISSION TO CONSOLIDATE ITS POWER SINCE IT WAS SET UP LAST OCTOBER AS PART OF A NATIONAL TWOTIER REGULATORY BODY ITS AUTHORITY HAS BEEN CHALLENGED BY LOCAL SECURITIES OFFICIALS AND CENTRAL BANK OFFICIALS WHO HAD BEEN RESPONSIBLE FOR OVERSEEING CHINA'S SHENZHEN AND SHANGHAI STOCK EXCHANGES THE PROPOSED LAW WOULD STATE CLEARLY THAT THE COMMISSION IS IN CHARGE REFLECTING THE COMMITTEE'S BELIEF THAT THERE SHOULD BE ONE COMMISSION ONLY INSTEAD OF THE CURRENT TWOTIER SYSTEM WHERE THE COMMISSION MUST ANSWER TO A POLICYMAKING BODY SAYS MR LI THE LAW WOULD ALSO ALLOW THE BEIJINGBASED COMMISSION TO SET UP REGIONAL REGULATORY OFFICES WHILE BANNING LOCAL GOVERNMENTS FROM DOING SO IT WOULD REQUIRE BROKERAGE FIRMS TO BE SEPARATE LEGAL ENTITIES EFFECTIVELY BANNING BANKS AND OTHER GOVERNMENT BODIES THAT HAVE SECURITIES DEPARTMENTS FROM ENGAGING IN TRADING WHILE THIS RULE IS AIMED PRIMARILY AT ELIMINATING UNFAIR COMPETITION IT WOULD ALSO REDUCE THE VESTED INTERESTS OF THESE BODIES DESPITE THESE MEASURES SOME DRAFTERS AREN'T SATISFIED GAO XIQING A COMMISSION OFFICIAL WHO HELPED WITH THE DRAFT COMPLAINS THAT EVEN BEFORE THE NEWLY ESTABLISHED WATCHDOG WAS BORN MANY OF ITS TEETH WERE TAKEN OUT WE HAVE FULL POWER OVER LISTED COMPANIES BUT WE DON'T HAVE A WHOLE LOT OF POWER TO DISCIPLINE SECURITIES FIRMS FOR EXAMPLE THE COMMISSION WON'T BE ABLE TO LICENSE FIRMS OR REMOVE LICENSES AFTER THE SECURITIES LAW IS PASSED EXISTING BROKERAGE FIRMS WILL HAVE TO REAPPLY FOR LICENSES WITH THE SHENZHEN AND SHANGHAI STOCK EXCHANGES POWER TO REMOVE LICENSES WOULD ULTIMATELY LIE WITH THE PEOPLE'S BANK OF CHINA CHINA'S CENTRAL BANK 9303150099 930315 INTERNATIONAL BRIEF CREDIT LYONNAIS LENDER PREDICTS '92 RESULTS MAY BE WORST IN 20 YEARS THE 1992 RESULTS OF FRENCH LENDER CREDIT LYONNAIS WILL PROBABLY BE THE WORST IN 20 YEARS CREDIT LYONNAIS CHAIRMAN JEANYVES HABERER SAID IN A FRENCH DAILY MR HABERER QUOTED IN LE FIGARO NOTED THAT THE BANK WILL TACK ON MORE PROVISIONS IN THE SECOND HALF THAN WE DID IN THE FIRST HALF IN FIRSTHALF 1992 CREDIT LYONNAIS PILED ON 625 BILLION FRANCS 111 BILLION OF PROVISIONS FOR RISKY LOANS WHILE NET GROUP PROFIT PLUNGED 92 TO 119 MILLION FRANCS IN 1991 CREDIT LYONNAIS POSTED PROFIT OF 316 BILLION FRANCS 9303150098 930315 NOTABLE & QUOTABLE FROM AN INTERVIEW WITH DR RONALD DAVID A LECTURER AT THE KENNEDY SCHOOL ON THE CONNECTION BETWEEN HEALTH CARE AND HEALTH IN THE MARCHAPRIL ISSUE OF HARVARD MAGAZINE ORIGINALLY INFANT MORTALITY STATISTICS WERE INTENDED TO GIVE AN INDEX OF THE HEALTH OF THE COMMUNITY AND THE HEALTH OF CHILDBEARING WOMEN BUT WE WRONGLY REINTERPRETED THAT DATA IN THE LIGHT OF THE CURRENT MEDICAL PARADIGM WHICH REGARDS PREGNANCY AS A PATHOLOGICAL CONDITION REQUIRING MEDICAL INTERVENTION THUS INFANT MORTALITY RATES CAME TO BE AN INDEX OF DEVIANT MATERNAL BEHAVIOR SUCH AS TEENAGE PREGANCIES OR LACK OF ACCESS TO MEDICAL PRENATAL CARE THE ENTIRE FOCUS SHIFTED AWAY FROM THE COMMUNITY AND ONTO THE INDIVIDUAL THE PROBLEM NOW HAS BEEN REDEFINED AS ONE OF PROVIDING MORE MEDICAL CARE AND OF MAKING WOMEN RESPONSIBLE FOR PREGNANCY OUTCOMES MATERNAL AND CHILD HEALTH POLICY IS TYPICALLY CONCERNED WITH THE HEALTH OF WOMEN ONLY FOR THE TIME THAT THEY ARE POTENTIAL FETAL VESSELS LOOK AT MEXICANAMERICAN WOMEN THEY ARE THE FASTESTGROWING MINORITY POPULATION IN THE UNITED STATES ECONOMICALLY THEY ARE MORE IMPOVERISHED THAN AFRICANAMERICAN WOMEN AND THEY HAVE EVEN LESS ACCESS TO MEDICAL CARE THAN THEIR AFRICANAMERICAN COUNTERPARTS BUT THEIR INFANT MORTALITY IS EQUAL TO OR LOWER THAN THE RATES FOR PRIVILEGED EUROPEANAMERICAN WOMEN HOW DO YOU EXPLAIN THIS IN TERMS OF THE CURRENT PARADIGM YOU MUST LOOK AT THE DIFFERENT WAYS IN WHICH THE COMMUNITY MOBILIZES AROUND THE PREGNANT WOMAN IN MEXICANAMERICAN CULTURE AS OPPOSED TO AFRICANAMERICAN CULTURE TYPICALLY OTHER MEXICANAMERICAN WOMEN WHO HAVE HAD CHILDBEARING EXPERIENCE GATHER ROUND EMBRACE AND SUPPORT THE PREGNANT FEMALE THE AFRICANAMERICAN MOTHERTOBE IN CONTRAST IS OFTEN ISOLATED FROM NOURISHING SOCIAL RELATIONSHIPS NOWADAYS WE ALLOW SUPPORTIVE PEOPLE TO JOIN THE MOTHER IN THE DELIVERY ROOM AT THE TIME OF DELIVERY IT HAS BEEN DOCUMENTED THAT WHEN SUCH SUPPORTIVE COMPANIONS ATTEND THE DELIVERY MOTHERS HAVE FEWER CAESAREAN SECTIONS NEED LESS ANESTHESIA AND REQUIRE SHORTER HOSPITAL STAYS FURTHERMORE THEIR BONDING WITH THEIR NEWBORNS AND THEIR SUCCESS AT BREAST FEEDING ALSO IMPROVE WHAT MUST SUCH SUPPORTIVE RELATIONSHIPS MEAN WHEN YOU CONSIDER THEM NOT JUST AT THE TIME OF BIRTH BUT ACROSS THE HISTORY OF THE PREGNANCY 9303150097 930315 CREDIT RATINGS ROYAL TRUSTCO DEBT IS DOWNGRADED BY S&P LEFT UNDER REVIEW NEW YORK STANDARD & POOR'S CORP SAID IT CUT ITS RATING ON ROYAL TRUSTCO LTD SENIOR DEBT TO SINGLEB FROM SINGLEAMINUS AND LEFT THE RATING ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE DOWNGRADE WHICH AFFECTS ABOUT 591 MILLION OF SENIOR DEBT REFLECTS CONCERNS ABOUT ROYAL TRUSTCO'S SEARCH FOR AN INVESTOR TO INJECT NEW CAPITAL INTO ITS OPERATIONS THE RATING AGENCY SAID S&P SAID IT BELIEVES IT'S INCREASINGLY LIKELY THAT ROYAL TRUSTCO'S CANADIAN FINANCIAL SERVICES AND TRUST OPERATIONS WILL BE SOLD LEAVING STOCKHOLDERS WITH SHARES OF THE HOLDING COMPANY ANALYSTS HAVE NOTED THAT THE BULK OF THE FINANCIAL SERVICES CONCERN'S PROBLEM LOANS ARE AT THE HOLDINGCOMPANY LEVEL S&P SAID THAT IF THE TRUST COMPANY AND THE HOLDING COMPANY AREN'T SOLD AS ONE THAT COULD TRIGGER ACCELERATION CLAUSES CONTAINED IN SOME OF ROYAL TRUSTCO'S LENDING AGREEMENTS THE RATING AGENCY SAID ROYAL TRUSTCO'S ABILITY TO REPAY ALL ACCELERATED DEBT IMMEDIATELY IN SUCH A CASE IS DOUBTFUL AND IT REMAINS UNCLEAR WHETHER ITS 47 OWNER TRILON FINANCIAL CORP WOULD BE IN A POSITION TO PROVIDE ASSISTANCE THE RATING AGENCY LEFT UNCHANGED ITS RATINGS ON THE DEBT ISSUED BY ROYAL TRUSTCO'S TWO CANADIAN OPERATION SUBSIDIARIES ALTHOUGH THIS DEBT WAS LEFT ON CREDITWATCH S&P CHANGED THE IMPLICATIONS TO DEVELOPING FROM NEGATIVE REFLECTING THE POSSIBILITY THAT THEY MAY BE ACQUIRED BY A STRONGER FINANCIAL SERVICES CONCERN IT SAID THAT DEPENDING ON THE STRUCTURE OF SUCH A PURCHASE THOSE RATINGS COULD BE RAISED ROYAL TRUSTCO A TORONTO FINANCIAL CONCERN INDIRECTLY CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ANNOUNCED IN JANUARY IT WOULD SEEK A NEW PARTNER TO INJECT SEVERAL HUNDRED MILLION DOLLARS OF NEW EQUITY IT IS NOW IN EXCLUSIVE NEGOTIATIONS WITH MONTREALBASED ROYAL BANK OF CANADA TRILON IS A HOLDING COMPANY WHICH ALSO FORMS PART OF THE TORONTO BRONFMAN FAMILY'S CORPORATE EMPIRE ROYAL TRUSTCO OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE DOWNGRADE 9303150096 930315 INTERNATIONAL GROUP OF SEVEN' NATIONS VOICE SUPPORT FOR YELTSIN HONG KONG RUSSIA'S BELEAGUERED PRESIDENT BORIS YELTSIN RECEIVED A VOTE OF CONFIDENCE AND LITTLE ELSE FROM REPRESENTATIVES OF THE WORLD'S SEVEN WEALTHIEST DEMOCRACIES AT A WEEKEND MEETING HERE BUT PARTICIPANTS SAID MORE HELP MAY BE ON THE WAY AT THE URGING OF PRESIDENT CLINTON THE PREVIOUSLY PLANNED MEETING OF FINANCE AND FOREIGN MINISTRY OFFICIALS FROM THE GROUP OF SEVEN NATIONS INVITED RUSSIAN DEPUTY PRIME MINISTER BORIS FYODOROV TO HONG KONG TO REPORT ON RUSSIA'S REFORM EFFORTS AND DISCUSS NEW WAYS THE WEST MIGHT HELP WE DO HOPE PRESIDENT YELTSIN AND HIS GOVERNMENT WILL SUCCEED AND IN ORDER TO HELP THEM IN THEIR REFORM EFFORTS WE WILL CONTINUE TO EXTEND HELP KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER TOLD REPORTERS AT A JOINT APPEARANCE WITH MR FYODOROV NO NEW CONCRETE AID PROPOSALS WERE ACTUALLY ANNOUNCED NEVERTHELESS OFFICIALS SAID THEY WERE IMPRESSED BY MR FYODOROV'S PRESENTATION IN HIS PRESENTATION MR FYODOROV STRESSED THE DETERMINATION OF MR YELTSIN AND HIS GOVERNMENT TO PRESS ON WITH THEIR MARKET REFORMS AND HE EMPHASIZED THAT ANY AID PROGRAMS MUST BE TARGETED IN A WAY TO GET THE MAXIMUM POLITICAL BENEFIT FOR MR YELTSIN AND THE REFORM PROGRAM WHAT IS IMPORTANT IS THAT NATIONAL FINANCIAL ASSISTANCE IS WELLTARGETED WELLTIMED THAT IT'S VISIBLE THAT PEOPLE FEEL THAT THIS CONTRIBUTION REALLY HELPED MR FYODOROV SAID 9303150095 930315 BUSINESS BRIEF OLYMPIA & YORK LTD EMERGES FROM COURT PROTECTION IN CANADA TORONTO OLYMPIA & YORK DEVELOPMENTS LTD SAID IT EMERGED FROM CANADIAN BANKRUPTCY COURT PROTECTION ON FRIDAY FOLLOWING THE EARLIER APPROVAL BY CREDITORS AND AN ONTARIO COURT OF THE COMPANY'S DEBT RESTRUCTURING PLAN O&Y SAID THAT WITH ITS RESTRUCTURING PLAN NOW TECHNICALLY COMPLETED A COURTAPPOINTED ADMINISTRATOR HAS ASSUMED HIS DUTIES AT THE HEAD OF THE REAL ESTATE CONCERN THE ADMINISTRATOR IS ROBERT E LOWE DEPUTY CHAIRMAN OF ACCOUNTING FIRM COOPERS & LYBRAND IN TORONTO HE WILL WORK CLOSELY IN RUNNING THE COMPANY WITH A COMMITTEE OF O&Y'S MAJOR BANKERS O&Y ALSO SAID THAT A US COURT HAS DISMISSED THE COMPANY'S CASE UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE FOUR O&Y SUBSIDIARIES THAT HOLD THE COMPANY'S US PROPERTY OPERATIONS REMAIN UNDER PROTECTION OF THE US BANKRUPTCY COURT OF THE SOUTHERN DISTRICT OF NEW YORK ALTHOUGH O&Y'S OPERATING UNITS IN THE US HAVEN'T FILED FOR CHAPTER 11 THE COMPANY'S US MANAGEMENT IS NEGOTIATING WITH CREDITORS TO RESTRUCTURE THE US53 BILLION IN DEBT RELATED TO THE US OPERATIONS O&Y WITH DEBT IN CANADA OF ABOUT US75 BILLION FILED FOR COURT PROTECTION LAST MAY ITS CANADIAN RESTRUCTURING PLAN ALLOWS SECURED CREDITORS TO SEIZE AT ANYTIME THE COLLATERAL SECURING THEIR DEBT MAINLY PREMIUM OFFICE TOWERS IN CANADA THE COMPANY'S CURRENT OWNERS TORONTO'S REICHMANN FAMILY HAVE CEDED EXECUTIVE CONTROL TO THE ADMINISTRATOR 9303150094 930315 TECHNOLOGY & HEALTH UPJOHN IS FAVORED BY JURY IN CASE INVOLVING HALCION BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL A DISTRICT COURT JURY DECIDED AGAINST A TEXAS MAN WHO CLAIMED THAT UPJOHN'S HALCION SLEEPING PILL CAUSED HIS ASSAILANT TO STAB HIM BECAUSE HE COULDN'T PROVE THAT THE MAN ACTUALLY USED THE DRUG THIS IS THE FIRST TIME A JURY HAS DECIDED IN FAVOR OF UPJOHN A KALAMAZOO MICH PHARMACEUTICAL COMPANY BUT IT'S ONLY THE SECOND TIME HALCION HAS COME TO A JURY VERDICT THIS CASE IS ONE AMONG MANY ACROSS THE US IN WHICH PLAINTIFFS ARE ATTEMPTING TO LINK VIOLENT BEHAVIOR TO THE USE OF A PRESCRIBED DRUG UPJOHN'S HALCION AND ELI LILLY & CO'S ANTIDEPRESSANT PROZAC ARE AT ISSUE IN SEVERAL CIVIL AND CRIMINAL CASES BUT THE SAN ANTONIO TEXAS VERDICT FAVORING UPJOHN PROBABLY WILL DO LITTLE TO REVERSE HALCION'S SALES SLIDE RESULTING FROM THE CONTROVERSY HALCION'S WORLDWIDE SALES PLUMMETED 45 TO 131 MILLION IN 1992 FROM A YEAR EARLIER IN THE SAN ANTONIO CASE WILLIAM HARLEY 43 YEARS OLD CLAIMED THAT HALCION IN 1987 CAUSED HIS ATTACKER JOE CASTLEMAN TO STAB HIM IN THE THROAT WHILE HE WAS SITTING IN AN EMERGENCY CLINIC HE WAS SEEKING AN UNDETERMINED AMOUNT OF ACTUAL AND PUNITIVE DAMAGES FROM UPJOHN BUT ATTORNEYS REPRESENTING BOTH SIDES SAID THERE WERE KEY DIFFERENCES IN THE SAN ANTONIO CASE FROM A DALLAS VERDICT DECIDED AGAINST UPJOHN LAST WINTER IN NOVEMBER A DALLAS JURY DECIDED THAT UPJOHN'S NEGLIGENCE IN ITS MARKETING OF HALCION CONTRIBUTED TO WILLIAM R FREEMAN'S VIOLENT REACTION TO THE DRUG AND THE ENSUING MURDER OF HIS BEST FRIEND MR FREEMAN IS SERVING A PRISON SENTENCE FOR THE 1987 KILLING THE JURY AWARDED 1050000 TO MR FREEMAN'S FAMILY UPJOHN IS APPEALING THE VERDICT IN THE MOST RECENT CASE THE PLAINTIFF COULDN'T PROVE CONCLUSIVELY THAT MR CASTLEMAN ACTUALLY USED HALCION SLEEPING PILLS AND IF HE DID FOR HOW LONG MR CASTLEMAN DIED OF DIABETESRELATED PROBLEMS IN 1989 AND PRIOR TO HIS DEATH THE ISSUE WAS NEVER RAISED ANOTHER PROBLEM MR CASTLEMAN HAD A LONG HISTORY OF PSYCHOLOGICAL PROBLEMS AND WAS FREQUENTLY INCARCERATED IN STATE MENTAL INSTITUTIONS IN FACT A JURY FOUND MR CASTLEMAN INSANE FOR STABBING MR HARLEY AND AS A RESULT SENTENCED HIM TO A STATE INSTITUTION ATTORNEYS REPRESENTING BOTH PARTIES SAID UPJOHN IS CLAIMING THE LATEST VERDICT AS A VICTORY WE CONGRATULATE THE JURY FOR LOOKING AT THE FACTS OF THE CASE RATHER THAN AWARDING A VERDICT BASED ON SYMPATHY SAID THEODORE COOPER UPJOHN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HALCION HAS BECOME AN EASY TARGET FOR PEOPLE WHO WANT TO FIND A BLAME FOR THEIR OWN ACTIONS OR IN THIS CASE FOR SOMEONE ELSE'S ACTIONS THIS VERDICT VINDICATES OUR COMPANY AND OUR PRODUCT BUT THAD HARKINS ATTORNEY REPRESENTING MR HARLEY SAID THIS VERDICT IS NO VINDICATION ON THE PRODUCT MR HARKINS SAID THE JURY DIDN'T ADDRESS THE ISSUE OF HALCION'S SAFETY BECAUSE THERE WASN'T CONCLUSIVE PROOF THAT HE INGESTED THE DRUG FOR A LONG PERIOD OF TIME IF AT ALL MR HARKINS SAID IT'S UNCERTAIN IF MR HARLEY WILL FILE AN APPEAL 9303150093 930315 POLITICS & POLICY PENA ORDERS AIDES TO EXPEDITE INQUIRY ON POSSIBLE RECALL OF '73'87 GM TRUCKS BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TRANSPORTATION SECRETARY FEDERICO PENA ORDERED TRAFFICSAFETY OFFICIALS TO EXPEDITE THEIR INVESTIGATION INTO WHETHER 47 MILLION 197387 MODEL GENERAL MOTORS CORP PICKUP TRUCKS SHOULD BE RECALLED AS UNSAFE MR PENA ISSUED HIS MARCHING ORDERS AMID NEW ALLEGATIONS AGAINST THE AUTO MAKER BY THE CENTER FOR AUTO SAFETY IN A LETTER TO THE TRANSPORTATION SECRETARY THE CONSUMER GROUP SAID CORPORATE DOCUMENTS SHOW THAT GM 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 FOR NOW GM DECLINED TO RESPOND TO THE CENTER UNTIL WE COMMUNICATE WITH THE OFFICE OF SECRETARY PENA IT WOULD BE INAPPROPRIATE FOR US TO MAKE ANY PUBLIC COMMENTS ON THESE CHARGES THE COMPANY SAID IN A STATEMENT MR PENA IS MAKING TRANSPORTATION SAFETY HIS TOP PRIORITY WHILE HE'S PAYING SPECIAL ATTENTION TO THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION THE NEW EMPHASIS ALSO APPLIES TO OFFICIALS RESPONSIBLE FOR AVIATION TRUCK AND RAIL SAFETY I'VE ASKED ALL TRANSPORTATION DEPARTMENT AGENCIES TO ENSURE THAT SAFETY REGULATIONS ARE FULLY ENFORCED AND SAFETY PROBLEMS ARE VIGOROUSLY PURSUED THE FORMER MAYOR OF DENVER SAID IN A STATEMENT THE CENTER FOR AUTO SAFETY WHICH SOUGHT A RECALL IN AUGUST CONTENDS THE GAS TANKS ON THE 47 MILLION GM AND CHEVROLET FULLSIZE PICKUPS ARE PRONE TO BURSTING INTO FLAMES ON IMPACT LAST MONTH AN ATLANTA JURY AWARDED 1052 MILLION TO THE FAMILY OF A YOUNG MAN WHO DIED IN A FIERY GM PICKUP CRASH GM MEANWHILE SAYS IT EXPECTS THE TRAFFIC SAFETY AGENCY'S INVESTIGATION TO BEAR OUT ITS CONTENTION THAT THE TRUCKS ARE SAFE IN THE LETTER TO SECRETARY PENA CLARENCE DITLOW THE CENTER'S EXECUTIVE DIRECTOR SAID GM DOCUMENTS SHOW THAT COMPANY ENGINEERS IN THE EARLY 1970S FAVORED A PERFORMANCE STANDARD THAT WOULD HAVE ELIMINATED 75 OF ALL VEHICLE FIRES AND PREVENTED ALL FIRES IN SURVIVABLE CRASHES IN PARTICULAR HE CITED A WRITTEN PRESENTATION BY THREE ENGINEERS WHO RECOMMENDED DESIGNING THE FUEL TANK SYSTEM SO THAT IT WOULDN'T LEAK IN NONFATAL COLLISIONS IE IF YOU SURVIVE THE CRASH FORCES YOU SHOULD NOT BE BURNED BY FIRES FROM FUEL LEAKS FOR REAREND COLLISIONS FOR EXAMPLE THEY RECOMMENDED DESIGNING THE FUEL SYSTEMS TO WITHSTAND THE IMPACT OF A VEHICLE TRAVELING AT 45 MILES PER HOUR MR DITLOW SAID BUT INSTEAD HE SAID GM DECIDED ON A DESIGN OBJECTIVE OF 30 MPH MEANWHILE THE COMPANY LOBBIED THE GOVERNMENT FOR A LOWER STANDARD AS A RESULT MR DITLOW SAID GM CAN ARGUE IN PRODUCTLIABILITY CASES THAT ITS TRUCKS MEET THE GOVERNMENT'S REAREND STANDARD OF 20 MPH AND SHOULDN'T BE RECALLED MR PENA HASN'T YET SEEN MR DITLOW'S LETTER ACCORDING TO A TRANSPORTATION DEPARTMENT SPOKESMAN THE SECRETARY IS SCHEDULED TO APPEAR TOMORROW AT A CONFERENCE ON HIGHWAY SAFETY IN CHICAGO AND LAY OUT A COMPREHENSIVE PLAN FOR PROTECTING THE TRAVELING PUBLIC THE SPOKESMAN SAID IT INCLUDES ADDITIONAL FUNDS TO IMPROVE THE USE OF SAFETY BELTS AND MOTORCYCLE HELMETS AND TO REDUCE THE NUMBER OF ALCOHOLRELATED TRAFFIC FATALITIES AS WELL AS A MORE RESOLUTE APPROACH TO REGULATION THE REGULATORY PROCESS WON'T BE IN FITS AND STARTS ANYMORE THE DEPARTMENT SPOKESMAN SAID 9303150092 930309 BUSINESS WORLD AIRLINE ASKS GOVERNMENT FOR ROOM TO KEEP RISING BY TIM W FERGUSON NEARLY EVERYBODY'S ON BOARD BILL CLINTON'S COMMISSION TO PUT THE AIRLINE INDUSTRY TOGETHER AGAIN BUT POLITICIANS AREN'T GOING TO LIKE HEARING ABOUT A BIG PART OF WHAT AILS THE BUSINESS IF YOU ASK HERB KELLEHER THE CHAIRMAN AND CEO OF SOUTHWEST AIRLINES THE LOWFARE SHORTHAUL OPERATOR THAT IS THE ONLY PROFITABLE US CARRIER OF SIZE HE COMPLAINS ABOUT TAXES AND REGULATION SPECIFICALLY MR KELLEHER CITES THE 25 INCREASE IN THE TICKET TAX THAT IS FATTENING THE FEDERAL TREASURY IN THE 1990S THERE'S NO MORE LOGIC IN CHOOSING AIRLINE PASSENGERS THAN THERE IS IN CHOOSING PODIATRISTS OR HARDWARESTORE OWNERS OR BARBERS HE SAYS THE MONEY IS SUPPOSED TO GO TOWARD AIRPORTS BUT DOESN'T TAX HIKES ON PASSENGERS AND FREIGHT ACCOUNTED FOR HALF THE LOSS OF THE AIRLINE INDUSTRY LAST YEAR EXCLUDING ACCOUNTING CHANGES FOR RETIREE MEDICAL CARE REQUIREMENTS FOR MASS RANDOM DRUG TESTING COST SOUTHWEST ABOUT 120000 A YEAR FOR SCANT SAFETY GAIN MR KELLEHER MAINTAINS THAT'S ONE OF A DOZEN NEW OR PROPOSED REGULATIONS THE INDUSTRY HAS BEEN FIGHTING IN THIS TRYING TIME INDEED ALTHOUGH HE RELISHES HIS ROLE AS A MAVERICK THE SOUTHWEST CHIEF COULD AS WELL BE REPRESENTING THE AIR TRANSPORT ASSOCIATION ON THIS SOAPBOX BUT IT'S NOT THE KIND OF INDUSTRY UNITY WASHINGTON WANTS MR KELLEHER TALKS THE CAPITAL'S LANGUAGE WHEN HE ADVOCATES AN INVESTMENT TAX CREDIT TO CUSHION THE SHIFT TO QUIETER AIRCRAFT TO MEET NEW FEDERAL NOISE STANDARDS BUT HE WOULD MAKE THE CREDIT RETROACTIVE TO PAST PURCHASES A REBATE TO THE INDUSTRY THAT'S OF HELP TO NO ONE ELSE DIRECTLY SOUTHWEST'S LOUD JETS ARE RELATIVELY NEW AND WILL STILL BE ON ITS BOOKS WHEN THEY MUST BE GROUNDED IN SEVEN YEARS HENCE THE BOSS'S CONCERN THE CUNNING OF THIS TEXAS TRANSPLANT WHO MADE LAW REVIEW AT NYU IS EVIDENT ON ANOTHER ISSUE AS HE BREAKS RANKS WITH THE INDUSTRY'S BIG THREE AMERICAN UNITED AND DELTA WE IN NO WAY ARE TRYING TO KILL OUR WOUNDED THE BANKRUPT CARRIERS SAYS MR KELLEHER A TIGHTER TIME LIMIT ON REORGANIZATIONS WOULD BE FINE HE ADDS BUT IMPOSING ONE AFTER THE FACT WOULD BE UNFAIR TO TWA CONTINENTAL AND COMPANY AS THOMAS LONGMAN AIRLINE ANALYST FOR BEAR STEARNS POINTS OUT SELFINTEREST IS AT WORK HERE IN ADDITION TO ANY SENSE OF JUSTICE THE ZOMBIE LINES ARE MOSTLY LONGHAUL OPERATORS THAT UNDERCUT THE PRICE POINTS OF THE BIG THREE ACROSS THE COUNTRY AND BEYOND THEREBY LIMITING THAT TRIO'S FINANCIAL ABILITY TO CONTEST SOUTHWEST'S FARES ON ITS SELECTIVE ROUTES IN 25 YEARS SOUTHWEST HAS FLOWN FAR FROM ITS COZY NEST AT DALLAS'S LOVE FIELD BUT STILL PICKS AND CHOOSES ITS 34 CITIES ALONG AN ARC FROM CALIFORNIA TO CLEVELAND ITS INFORMAL AND ACCOMMODATING BUT EFFICIENT STYLE HAS MADE IT A FLIER FAVORITE SUCCESS HAS DEPENDED ON DOUBLING OR TRIPLING PAIRCITY TRAFFIC THROUGH LOW PRICES A STRATEGY AT LEAST AS OLD AS HENRY FORD THAT'S WHERE MR KELLEHER REALLY COLLIDES WITH HIS BIGGER HUBBASED RIVALS WHICH COMPLAIN THERE'S TOO MUCH CAPACITY IN THE AIR HE SAYS INSTEAD THAT COSTS ARE TOO HIGH TO PERMIT PRICING THAT WOULD STIMULATE ENOUGH SEAT SALES WHILE ADMITTING THAT SPECIALIZING IN PASSENGERS MAKING DAY TRIPS SPARES SOUTHWEST SOME OF THE MAJORS' HASSLES MR KELLEHER DISPUTES THE IDEA HIS CARRIER BANKS ON LOWER PAY WE'RE THE MOST HEAVILY UNIONIZED AIRLINE IN AMERICA HE SAYS WITH 84 OF THE EMPLOYEES ORGANIZED HALF OF THOSE HE ESTIMATES ARE IN UNAFFILIATED UNIONS SOUTHWEST SAVES THROUGH HIGH PRODUCTIVITY HE EXPLAINS PILOTS ARE IN THE AIR MORE AND EVERYBODY ASSISTS IN TURNING PLANES FAST AT THE GATES VIRTUALLY BORN INTO DEREGULATION THE COMPANY HAS A SURVIVAL CULTURE SO WE'VE NEVER HAD ANY WORK RULES THAT PREVENTED ANYBODY FROM HELPING SOMEBODY ELSE WITH THEIR JOB INCLUDING LOADING BAGS WHEN DELAYS THREATEN OUR PEOPLE ARE SO RESULTSORIENTED HE CROWS WHEREAS OTHER CARRIERS HAD A HERITAGE OF 40 YEARS OF BEING PROTECTED AGAINST COMPETITION THAT'S PROBABLY PART OF IT ALTHOUGH SOME FOREIGN CARRIERS PARTICULARLY IN ASIA HAVE ATTAINED HIGH STANDARDS WHILE BEING SHIELDED AND A HUNGRY NEWCOMER THAT DOESN'T OR CAN'T TAKE CARE OF ITS PEOPLE SUCH AS REGIONAL RIVAL AMERICA WEST LOSES ESPRIT DE CORPS WHATEVER THE SECRET SOUTHWEST CLEARLY KNOWS IT ON A RECENT FLIGHT OUT OF PHOENIX AN ATTENDANT WAS TELLING A CURIOUS PASSENGER A ROW AHEAD OF ME WHAT A WONDERFUL JOB HE COULD SEEK WITH THE COMPANY TODAY YOU'RE LUCKY TO GET A SMILE FROM MOST CABIN CREWS DOES OPERATING AWAY FROM THE EAST COAST ENHANCE THE QUALITY OF SERVICE THAT'S AN INTERESTING QUESTION MR KELLEHER RESPONDS BEFORE REMEMBERING THAT YOU FIND PEOPLE WITH GREAT ATTITUDES TEAM PLAYERS WHEREVER YOU GO HE SAYS SOUTHWEST IS METICULOUS IN ITS HIRING AND OFFERS THIS STORY THE PEOPLE DEPARTMENT CAME TO ME ONE DAY AND SAID WE'VE INTERVIEWED 34 PEOPLE FOR THIS RAMP AGENT'S POSITION AND WE'RE GETTING A LITTLE WORRIED ABOUT THE TIME AND EFFORT AND COST THAT'S GOING INTO IT' AND I SAID IF YOU HAVE TO INTERVIEW 154 PEOPLE TO GET THE RIGHT PERSON DO IT SOUTHWEST CHOOSES DESTINATIONS GREATLY ON AIRPORT CONDITIONS HE SAYS MANY EASTERN US FACILITIES ARE SO CONGESTED AND THEIR SLOTS SO CONTROLLED THAT IT WOULD BE POINTLESS TO TRY TO BOOST PASSENGER LOADS ALWAYS MR KELLEHER'S AIM BECAUSE THERE'D BE NO WAY TO ACCOMMODATE A RISE MOREOVER SOUTHWEST PROFITS FROM KEEPING PLANES IN THE AIR WE TURN THEM AT THE JETWAY IN 15 MINUTES ON AVERAGE WELL IT DOESN'T MAKE ANY DIFFERENCE IF YOU LEAVE THE JETWAY IN 15 MINUTES AND HAVE TO SIT ON THE TAXIWAY FOR 45 MINUTES DURING WINTER MONTHS DELAY ALSO HAS BEEN A CURSE OF DENVER'S STAPLETON AIRPORT IT'S WHY SOUTHWEST PULLED OUT OF THERE EIGHT FLIGHTS WERE CAUSING 50 OF ITS SYSTEMWIDE SNAGS NOW WITH THAT CITY'S INTERCONTINENTAL FACILITY ABOUT TO OPEN A NEW PROBLEM ARISES THE PLACE IS SO BESET BY OVERRUNS AND FRILLS IT'S COSTING 14 MILLION PER GATE THAT SOUTHWEST IS FIGURING 20 PER PASSENGER TO USE IT VS A 3 AVERAGE FOR THE CARRIER IN 1991 SOUTHWEST'S MEAN FARE WAS 56 ADD 20 TO THAT AND IT'S HARD TO ATTRACT THE MARGINAL FLIER KNOWING ITS MARKET IS ALSO THE REASON SOUTHWEST FLOUTS THE INDUSTRY STANDARD OF CONNECTING WITH OTHER AIRLINES THEN YOU HAVE YOUR TICKET COUNTERS AND RESERVATION CENTERS CLOGGED WITH PEOPLE MAKING COMPLICATED ITINERARIES AND TRYING TO GET THE LOWEST FARE ON THREE DIFFERENT CARRIERS MR KELLEHER SAYS OUR PASSENGERS ARE FLYING FOR 50 MINUTES WE DON'T THINK THEY SHOULD STAND IN LINE FOR 20 MINUTES TO GET THEIR TICKETS NOT ALL WOULD CHOOSE TO FOLLOW SOUTHWEST'S LEAD BUT ITS GAINS IN A DIFFICULT PERIOD TESTIFY TO THE CREATIVITY BORN OF STRESS POLICY MAKERS WHO WANT TO RESCUE THE AIRLINE INDUSTRY SHOULD LEAVE THE FREEDOM TO INNOVATE THAT DEREGULATION BROUGHT WHILE ADDRESSING BURDENS THAT AFFLICT ALL CARRIERS INDEED ALL ENTERPRISES SEE RELATED LETTER LETTERS TO THE EDITOR WATCH OUT BIG GUYS SOMEONE'S ON YOUR TAIL WSJ MARCH 15 1993 9303090049 9303150091 930315 ALLEGHENY LUDLUM TO BUY ATHLONE IN A STOCK SWAP BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH STAINLESSSTEEL PRODUCER ALLEGHENY LUDLUM CORP AGREED TO BUY ATHLONE INDUSTRIES INC IN A STOCK SWAP VALUED AT ABOUT 107 MILLION OR 1750 FOR EACH ATHLONE SHARE THE ACQUISITION WILL SOLIDIFY ALLEGHENY LUDLUM'S LEAD AS THE LARGEST SPECIALTY STEEL PRODUCER SUPPLEMENTING ITS STEELPLATEMAKING CAPABILITY WITH THE STEELROLLING OPERATIONS OF ATHLONE'S LARGEST SUBSIDIARY JESSOP STEEL OF WASHINGTON PA ATHLONE HAD NET INCOME LAST YEAR OF 57 MILLION OR 95 CENTS A SHARE ON SALES OF 207 MILLION THE OFFER PRICE REPRESENTS A 325 PREMIUM OVER ATHLONE'S SHARE PRICE OF 1425 BEFORE THE PROPOSED DEAL WAS ANNOUNCED FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY ATHLONE SHARES SOARED 2375 TO 16625 ALLEGHENY LUDLUM SHARES FELL 125 CENTS TO 37875 IN BIG BOARD TRADING ALLEGHENY LUDLUM EXPECTS TO ISSUE ABOUT 85 MORE SHARES TO FUND THE PURCHASE BASED ON ITS TRADING PRICE OF 38 PRIOR TO ANNOUNCEMENT THE TRANSACTION IS EXPECTED TO BE NONDILUTIVE AND KEMPER SECURITIES GROUP ESTIMATES IT WILL ADD ABOUT FIVE CENTS TO 10 CENTS TO ALLEGHENY LUDLUM'S PERSHARE EARNINGS IN THE FIRST YEAR THE COMPANY WITH 1992 SALES OF 104 BILLION REPORTED 1992 PROFIT OF 469 MILLION OR 142 A SHARE EXCLUDING A 1252 MILLION ACCOUNTING CHARGE ALLEGHENY LUDLUM'S CHIEF EXECUTIVE OFFICER ROBERT P BOZZONE SAID THE ACQUISITION WILL INCREASE ITS PROFITABILITY IN STAINLESS STEEL PLATE AND PROVIDE OPERATING AND OTHER SYNERGIES THE PROPOSED TRANSACTION WILL TRANSFORM ALLEGHENY LUDLUM FROM A MARKETER TO A COSTCOMPETITIVE PRODUCER OF STAINLESS STEEL PLATE WITH A STRONGER FOCUS ON SPECIALIZED APPLICATIONS HE SAID IN ADDITION HE NOTED IT WILL BE POSITIONED TO SERVE MORE SPECIALTY STEEL MARKET NICHES FOR TOOL STEELS HEATRESISTANT NICKEL ALLOYS AND OTHER HIGHTECHNOLOGY MATERIALS EXECUTIVES WERE NOT AVAILABLE FOR COMMENT HAROLD J MILLER ATHLONE'S CHAIRMAN SAID THE DEAL WOULD ALLOW THE ATHLONE SHAREHOLDERS TO PARTICIPATE IN THE NEARTERM AND LONGTERM FAVORABLE PROSPECTS OF THE MERGED COMPANY IN ADDITION TO JESSOP ATHLONE OWNS GREEN RIVER STEEL CORP OWENSBORO KY A MAKER OF SPECIALTY SEMIFINISHED ALLOY AND CARBON STEEL AND REYNOLDS FASTENERS INC AN INDUSTRIALFASTENER MANUFACTURER IN EDISON NJ THE DEAL EXPECTED TO BE TAXFREE FOR ATHLONE SHAREHOLDERS IS SUBJECT TO CONDITIONS INCLUDING EXECUTION OF A DEFINITIVE PACT AND APPROVAL BY BOTH COMPANIES' BOARDS ATHLONE HOLDERS AND REGULATORS ALLEGHENY LUDLUM ALSO ANNOUNCED PLANS TO INVEST 56 MILLION IN THE NEXT TWO YEARS AS PART OF ITS EFFORT TO IMPROVE ITS VANDERGRIFT PA STAINLESSSTEEL FINISHING PLANT THE INVESTMENT INCLUDES A NEW ANNEAL AND PICKLE LINE A TEMPER COLD ROLLING MILL AND OTHER AUXILIARY EQUIPMENT DESIGNED TO PRODUCE HIGH QUALITY STAINLESS STEEL SHEET AND STRIP PRODUCTS 9303150090 930315 GLOBAL VIEW ALL IS BUSTLE ON CHINA'S CAPITALIST ROAD BY GEORGE MELLOAN SHENZHEN CHINA AS A CROWDED TRAIN RUMBLES THROUGH THE NIGHT FROM THIS CITY TOWARD CANTON GUANGZHOU A LIGHTED SIGN IN SOME LITTLE RAILROAD TOWN CATCHES THE EYE THE BILLIONAIRES HOTEL IT SAYS WELL WHY NOT AT THE RATE SHENZHEN AND OTHER SPECIAL ECONOMIC ZONES ON CHINA'S COAST ARE BURGEONING HOMEGROWN BILLIONAIRES MAY ALREADY EXIST SOME MAY EVEN HAVE MADE FORTUNES HONESTLY AND NOT THROUGH THE GRAFT THAT ACCOMPANIES CHINA'S BOOM IN SHENZHEN A NEW CHINA OF SKYSCRAPERS LUXURY HOTELS AND MODERN FACTORIES IS RISING EVEN AS THE OLD CHINA OF MUDHOLED ROADS SHANTIES OPEN SEWERS POLLUTED WATER AND SURGING MASSES OF PEOPLE REMAINS VERY MUCH IN EVIDENCE SHENZHEN AND CANTON ARE IN GUANGDONG PROVINCE WHICH HAS A POPULATION OF 60 MILLION AND HAS MAINTAINED REAL ECONOMIC GROWTH OF 12 ANNUALLY FOR A DECADE CONSTRUCTION SITES WITH THEIR BULLDOZERGASHED RED CLAY LANDSCAPES AND BAMBOO SCAFFOLDING ARE EVERYWHERE TRUCKS LOADED WITH BUILDING MATERIALS CROWD RUTTED OVERWORKED ROADS GUANGDONG NOW CLOSELY INTERLINKED ECONOMICALLY WITH ITS CAPITALIST NEIGHBOR HONG KONG IS CHINA'S CAPITALIST FRONTIER A VISIT TO CHINA BICYCLES CO CBC OFFERS A CLOSEUP GLIMPSE FOUNDER JEROME SZE A HONG KONG BUSINESSMAN WAS ONE OF THE EARLY FOREIGN ENTRANTS WHEN THE SPECIAL ZONES WERE CREATED OUT OF DENG XIAOPING'S ECONOMIC REFORMS OF THE LATE 1970S IN HIS ORIGINAL JOINT VENTURE IN CHINA MR SZE BEGAN BUILDING BICYCLES FOR WESTERN FIRMS INCLUDING SCHWINN OF CHICAGO BUT NOW FURTHER ECONOMIC LIBERALIZATION IS ALLOWING CBC ACCESS TO THE VAST CHINA MARKET ITSELF WHERE IT WILL COMPETE WITH STATEOWNED BICYCLE COMPANIES A HUGE NEW FACTORY IN AN INDUSTRIAL PARK OUTSIDE SHENZHEN WILL EVENTUALLY PRODUCE 25 MILLION BICYCLES A YEAR JOHN W BARKER A FORMER SCHWINN EXECUTIVE WHO NOW WORKS FOR MR SZE PROUDLY CONDUCTS A TOUR OF THIS SHOWPLACE AND ITS APARTMENT COMPLEX FOR EMPLOYEES WHICH INCLUDES A SWIMMING POOL THE PLANT HAS ADVANCED EQUIPMENT BUT ROWS OF WORKERS INSTALL WHEEL SPOKES BY HAND BECAUSE GETTING THE RIGHT TENSION IS BEST DONE BY FEEL SUBASSEMBLIES SUCH AS DERAILLEURS AND SPROCKETS ARE IMPORTED FROM JAPAN AND TAIWAN AS MR BARKER PUTS IT TO SOMEONE IN THE BICYCLE BUSINESS THE CHINA MARKET IS NIRVANA CBC IS SETTING UP DIRECT OUTLETS FOR SALES AND SERVICE IN SOME SELLING AS MANY BIKES IN A WEEK AS A US RETAILER WOULD BE PLEASED TO MARKET IN A YEAR CBC'S BIKES ARE MORE EXPENSIVE THAN STATE BIKES RETAILING FOR 1000 YUAN 172 OR ABOUT TWO MONTHS' WAGES FOR A GUANGDONG FACTORY WORKER MR SZE DOESN'T SEE THAT AS A PROBLEM WHILE CHINA LACKS MANY AMENITIES ITS PEOPLE BY AND LARGE HAVE SAVINGS INDEED DRAWING SAVINGS OUT OF MATTRESSES AND CONVERTING THEM INTO IMPROVED LIVING STANDARDS WAS ONE URGENT TASK OF THE ECONOMIC REFORM A TASK THAT THE SOVIET COMMUNIST PARTY NEGLECTED TO ITS REGRET CBC ALREADY IS LAYING PLANS TO GO FURTHER UPMARKET INTO MOPEDS AND MAYBE MOTORCYCLES TO TAKE ADVANTAGE OF RISING AFFLUENCE MOREOVER AS MR SZE PUTS IT THE CHINESE PEOPLE LIKE THE STYLE OF OUR BICYCLES WITH THE BRIGHT DESIGNER COLORS AND VARIED MODELS FOUND IN WESTERN BIKE SHOPS THEY STAND OUT AMONG THE STAID BLACK BIKES THAT MOST CHINESE RIDE THE CHINESE THIRST FOR STYLE AND BEAUTY IS UNDERSTANDABLE AFTER DECADES OF HARDSHIP AND REGIMENTATION THEY SUFFERED THE JAPANESE OCCUPATION CIVIL WAR A MAOINDUCED FAMINE AND THE INCREDIBLE CRUELTIES OF MAO'S CULTURAL REVOLUTION THE QUEST FOR STYLE MANIFESTS ITSELF IN CANTON WHERE YOUNG MEN AND WOMEN WEAVE THEIR BICYCLES THROUGH THE DUST AND FUMES CREATED BY BUSES TRUCKS AND TAXIS BUT SOMEHOW CONTRIVE TO LOOK NEAT AND FASHIONABLE IN THEIR OFFICE SUITS AND DRESSES THIS IS ALL THE MORE REMARKABLE IN LIGHT OF THE SUBSTANDARD LIVING CONDITIONS IN EVEN THE ADVANCING PARTS OF CHINA THE COUNTRY'S LONG STRING OF REVERSES HAS LEFT IT A SHATTERED THIRD WORLD GOLIATH THE NEW SKYSCRAPERS RISING IN SUCH PLACES AS SHENZHEN AND THE FACTORIES SPROUTING IN THE SPECIAL ECONOMIC ZONES WILL NOT TRANSFORM THE LIVING CONDITIONS OF NEARLY 12 BILLION PEOPLE OVERNIGHT BUT SOME PEOPLE NOW HAVE A CHANCE AT A BETTER LIFE ONE OF THE MOST REMARKABLE SIGHTS IN CANTON CONFRONTS A TRAVELER EMERGING FROM THE CENTRAL TRAIN STATION ONTO A LARGE FORECOURT OR PLAZA THERE ARE THOUSANDS OF PEOPLE CAMPED ON THE CONCRETE AND THE DIN OF THEIR CHATTER FILLS THE AIR THEY ARE THE NEW ARRIVALS LURED HERE FROM INLAND PROVINCES SUCH AS SICHUAN AND HUNAN BY THE PROMISE OF JOBS IN GUANGDONG PROVINCE MANY OF THEM HOLD SIGNS ADVERTISING THEIR SKILLS BY ONE ESTIMATE MORE THAN A MILLION HAVE PASSED THROUGH THIS STATION SINCE THE BEGINNING OF THE YEAR THEY REPRESENT A NEW LABOR MOBILITY CHINESE NO LONGER NEED PERMITS TO TRAVEL INSIDE CHINA SO THEY GO WHERE THEY THINK THEY CAN BETTER THEIR LIVES YOUTHFULNESS IS EVIDENT EVERYWHERE INCLUDING AT YET ANOTHER CAPITALIST ENTERPRISE CANTON'S WHITE HORSE ADVERTISING AGENCY IT WAS PUT TOGETHER BY A GROUP OF FORMER UNIVERSITY STUDENTS THE AVERAGE AGE OF THE STAFF IS 27 IN A CONFERENCE ROOM THAT FALLS ONLY SLIGHTLY SHORT OF MADISON AVENUE SHOWINESS CREATIVE DIRECTOR WU XIAO BO AND MARKET RESEARCHER ANNIE ZHENG DISPLAY TV COMMERCIALS ONE CLIENT IS A STATE COMPANY CALLED GUANGZHOU OIL AND FAT CHEMICAL INDUSTRIAL CORP WHICH PRODUCES SOME 100 DIFFERENT HOUSEHOLD PRODUCTS DEEMING THE CLIENT'S CORPORATE NAME TOO LONG AND DULL THE WHITE HORSE YOUTHS PRODUCED A NEW LOGO LONKEY COMMERCIALS ADVERTISING DETERGENTS LOTIONS AND THE LIKE PICTURE WELLDRESSED YOUNG PEOPLE LIVING IN MODERN HOUSING SAYING AND DOING MUCH THE SAME KIND OF THINGS PEOPLE SAY AND DO IN WESTERN COMMERCIALS THE ARTISTICALLY FILMED SCENES OF COURSE DO NOT REFLECT REALITIES BUT AD MEN AND WOMEN IN CHINA AS ELSEWHERE DEAL IN DREAMS WHITE HORSE USED CAPITAL IT HAD EARNED IN ADVERTISING PRODUCTION TO MOVE UP TO AGENCY STATUS LAST YEAR SETTING UP A HONG KONG COMPANY TO GO INTO A JOINT VENTURE WITH THE GUANGDONG GOVERNMENT CBC IS IN PARTNERSHIP WITH A SHENZHEN MUNICIPAL AUTHORITY WHICH OWNS JUST OVER 23 OF ITS STOCK PRESUMABLY THE CITY USES SOME OF ITS DIVIDENDS AS SEED MONEY FOR OTHER JOINT VENTURES ASKED IF SOME OF THE PROFITS MUST GO TO BEIJING MR SZE SAYS WITH A SMILE NOBODY SENDS MUCH MONEY TO BEIJING DOES THIS SUGGEST THAT THE NEW CAPITALISM IS INCREASINGLY DETACHING THE COASTAL PROVINCES FROM BEIJING'S CONTROL IN SOME SENSE YES BUT POLITICAL POWER STILL RESTS WITH THE COMMUNIST PARTY AND THE RULING ELITES STILL MANAGE TO SKIM OFF THEIR SHARE OF THE CREAM IF BOOM DOESN'T TURN TO BUST POLITICS AND COMMERCE MAY CONTINUE TO COEXIST NICELY BUT MODERN CHINESE HISTORY TEACHES THAT OPTIMISM SHOULD BE TEMPERED WITH CAUTION 9303150089 930315 RELIABILITY POSTS LOSS FOR FOURTH QUARTER ANNOUNCES CUTBACKS HOUSTON RELIABILITY INC WHICH RECENTLY HAD POSTED TWO STRAIGHT PROFITABLE QUARTERS AFTER A NEARLY THREEYEAR STRING OF LOSSES SAID IT CUT BACK ITS OPERATIONS AFTER SLIPPING BACK INTO THE RED IN THE FOURTH QUARTER THE ELECTRONICS MAKER SAID IT POSTED A LOSS OF 27 MILLION OR 63 CENTS A SHARE FOR THE QUARTER INCLUDING A 1 MILLION PROVISION TO COVER A SUBSTANTIAL CURTAILMENT OF ITS OPERATIONS IN JAPAN THE COMPANY SAID IT ALSO ESTABLISHED A RESERVE OF 325000 IN THE FOURTH QUARTER TO COVER A REDUCTION IN THE SIZE OF ITS POWER PRODUCTS MANUFACTURING OPERATIONS IN SINGAPORE SOME OF THOSE OPERATIONS WERE TRANSFERRED TO ITS COSTA RICA FACILITY FOR THE YEAREARLIER QUARTER THE COMPANY RECORDED A LOSS OF 13 MILLION OR 31 CENTS A SHARE FOURTHQUARTER REVENUE FELL 5 TO 61 MILLION FROM 64 MILLION A YEAR AGO THE COMPANY ATTRIBUTED THE DECLINE TO REDUCED DEMAND FOR ITS CONDITIONING PRODUCTS FOR INTEGRATED CIRCUITS THE COMPANY ALSO SAID IT WILL TAKE A 300000 PROVISION IN THE 1993 FIRST QUARTER TO COVER A 10 PERSONNEL REDUCTION AT ITS HEADQUARTERS THE HOUSTON WORK FORCE WILL BE REDUCED TO 180 EMPLOYEES FROM 200 EFFECTIVE THIS WEEK DESPITE THE FOURTHQUARTER SETBACK RELIABILITY REPORTED THAT ITS LOSS FOR THE YEAR NARROWED TO 26 MILLION OR 62 CENTS A SHARE AFTER AN EXTRAORDINARY GAIN OF EIGHT CENTS A SHARE FROM 42 MILLION OR 99 CENTS A SHARE IN 1991 REVENUE GREW 6 TO 314 MILLION FROM 296 MILLION IN 1991 9303150088 930315 FUJITSU EXPECTS TO POST A LOSS IN CURRENT YEAR ELECTRONICS FIRM REVERSES PRIOR FORECAST OF PROFIT CITES WEAK SALES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FUJITSU LTD ONCE THOUGHT TO POSE THE GREATEST THREAT TO INTERNATIONAL BUSINESS MACHINES CORP'S DOMINATION OF THE GLOBAL COMPUTER INDUSTRY GAVE THE FIRST HINT IT IS SUFFERING FROM IBMSTYLE PROBLEMS WHEN IT PROJECTED A CONSOLIDATED PRETAX LOSS OF 20 BILLION YEN 1697 MILLION FOR THE YEAR ENDING MARCH 31 A COMPANY SPOKESWOMAN BLAMED THE LOSS WHICH WOULD BE FUJITSU'S FIRST FULLYEAR DEFICIT SINCE IT WAS LISTED IN 1949 ON JAPAN'S SLUMPING ECONOMY AND POOR SALES OF COMPUTERS PARTICULARLY MAINFRAMES AND OFFICE COMPUTERS FUJITSU HAD PREVIOUSLY FORECAST A 30 BILLIONYEN CONSOLIDATED PROFIT FOR THE YEAR IT NOW BECOMES THE SECOND MAJOR JAPANESE ELECTRONICS COMPANY TO FORECAST A LOSS FOR THE CURRENT YEAR EARLIER THIS MONTH NEC CORP PROJECTED A FULLYEAR GROUP PRETAX LOSS OF 43 BILLION YEN FUJITSU THE WORLD'S SECONDLARGEST COMPUTER COMPANY BEHIND IBM ALSO LOWERED ITS GROUP SALES FORECAST TO 345 TRILLION YEN FROM 36 TRILLION YEN ON A PARENT BASIS THE COMPANY NOW PROJECTS A 15 BILLIONYEN PRETAX LOSS A REVERSAL OF ITS EARLIER PROJECTION OF A 20 BILLIONYEN PRETAX PROFIT AND PARENT SALES OF 238 TRILLION YEN DOWN FROM AN EARLIER FORECAST OF 247 TRILLION YEN IN THE YEAR ENDED MARCH 31FUJITSU POSTED GROUP SALES OF 3441 TRILLION YEN AND A GROUP PRETAX PROFIT OF 515 BILLION YEN THE NEW FORECAST IS A HUMBLING ADMISSION FOR PROUD FUJITSU WHICH BLAZED A TRAIL AS JAPAN'S HOMEGROWN ANSWER TO THE GLOBESPANNING IBM BACK IN THE 1960S BIG BLUE HELD 70 OF THE WORLD COMPUTER MARKET AND FUJITSU WAS LITTLE MORE THAN A TINY MAKER OF TELECOMMUNICATIONS EQUIPMENT BY 1980 HOWEVER FUJITSU HAD WRESTED THE LEAD POSITION IN THE JAPANESE COMPUTER MARKET FROM IBM THE TWO COMPANIES CLASHED FOR MUCH OF THE NEXT DECADE MOST NOTABLY WHEN IBM TOOK FUJITSU TO ARBITRATION OVER ALLEGATIONS THAT FUJITSU HAD ILLEGALLY COPIED MANY OF IBM'S BASIC PROGRAMS THESE DAYS HOWEVER IBM IS REPORTING RECORD LOSSES AND TRYING TO SHED NEARLY 26000 WORKERS WORLDWIDE ANALYSTS SAY THE SAME FORCES THAT HAVE HUMBLED IBM MAINLY A DOWNSIZING TREND IN WHICH CHEAP POWERFUL PERSONAL COMPUTERS HAVE ERODED THE MARKET FOR HUGE LUCRATIVE MAINFRAMES ARE BEARING DOWN ON FUJITSU TOO THEY ARE ESSENTIALLY A MAINFRAME MAKER IN A DOWNSIZING WORLD SAID STEVEN MYERS AN ANALYST WITH JARDINE FLEMING SECURITIES LTD FUJITSU OFFICIALS DISPUTE THE IBM ANALOGY ARGUING THAT THEIR COMPANY IS MOVING AGGRESSIVELY INTO NEW FIELDS SUCH AS OPEN SYSTEMS THOSE IN WHICH CUSTOMERS CAN BUY EQUIPMENT FROM A VARIETY OF VENDORS INSTEAD OF PLEDGING ALLEGIANCE TO A PARTICULAR MANUFACTURER STILL LIKE MANY JAPANESE MANUFACTURERS FUJITSU TRIES TO FILL ALMOST EVERY AVAILABLE PRODUCT NICHE A COSTLY STRATEGY THAT KILLS EARNINGS AGGRAVATING THE PROBLEM SAY ANALYSTS IS FUJITSU'S MANAGEMENT WHICH HASN'T TAKEN MANY TOUGH MEASURES TO TURN AROUND THE COMPANY'S FORTUNES FUJITSU'S MAIN COSTCUTTING MEASURES TO DATE ARE A PLAN TO CUT BACK HIRES OF UNIVERSITY GRADUATES TO 300 FROM MORE THAN 1000 AND TO TRIM 500 ADMINISTRATIVE POSITIONS BY ATTRITION AND SHIFTING REDUNDANT PERSONNEL TO THE SALES FORCE IT ALSO PLANS TO CUT ITS DIVIDEND FOR THIS YEAR TO THREE YEN A SHARE FROM THE FIVE YEN PROJECTED EARLIER ANALYSTS AREN'T IMPRESSED WITHOUT A DRASTIC SLASHING OF ITS PRODUCT LINES AND ITS PAYROLL SAID MR MYERS FUJITSU'S LOSSES WILL DEEPEN 9303150087 930315 LEISURE & ARTS BOOKSHELF THE SENATOR WHO KEEPS GOING AND GOING BY JOHN H FUND I FIRST MET STROM THURMOND 10 YEARS AGO AT A WASHINGTON RECEPTION I WAS FASCINATED BY HIS RECOLLECTIONS OF PRESIDENTS HE HAD KNOWN AND IMPRESSED WITH HIS CANNY POLITICAL INSTINCTS THEN WE JOINED A BUFFET LINE AND I NOTICED THE SENATOR STUFFING SOME WHOLEGRAIN ROLLS INTO HIS BAGGIELINED JACKET POCKETS BEING YOUNG I COULDN'T HELP ASKING HIM WHAT HE WAS UP TO YOU NEVER KNOW WHEN YOU'RE GOING TO GET YOUR NEXT MEAL HE INFORMED ME LACONICALLY RIGHT THEN I KNEW I WAS IN THE PRESENCE OF ONE OF THE GREAT CHARACTERS OF AMERICAN POLITICS EVERY OTHER MAJOR POLITICAL FIGURE OF THE 1940S IS LONG GONE BUT AT THE AGE OF 90 MR THURMOND IS STILL ACTIVE AND VIGOROUS LAST WEEK THE REPUBLICAN SENATOR FROM SOUTH CAROLINA HELPED CONDUCT JANET RENO'S CONFIRMATION HEARINGS AS RANKING MEMBER OF THE JUDICIARY COMMITTEE THEN HE WENT OFF TO BE HONORED AT A DINNER FOR 1000 GUESTS INCLUDING PRESIDENTS CLINTON AND NIXON AND GEN COLIN POWELL MR THURMOND HAS CLEARLY TRANSCENDED HIS POLITICAL PAST AS A LEADING PROPONENT OF SEGREGATION AND AS THE MAN WHO CARRIED FOUR SOUTHERN STATES AS THE 1948 PRESIDENTIAL CANDIDATE OF THE STATES RIGHTS PARTY THE STORY OF MR THURMOND'S REMARKABLE ABILITY TO CHANGE WITH THE TIMES FORMS THE HEART OF JOURNALIST NADINE COHODAS'S EXHAUSTIVELY RESEARCHED BIOGRAPHY STROM THURMOND & THE POLITICS OF SOUTHERN CHANGE SIMON & SCHUSTER 574 PAGES 2750 SHE HAS AVOIDED THE TEMPTATION TO PAINT MR THURMOND SOLELY AS A PRIMITIVE RACEBAITER WHO TURNED PRAGMATIC AFTER THE 1965 VOTING RIGHTS ACT ENFRANCHISED BLACK VOTERS IN SOUTH CAROLINA THE AUTHOR HERSELF A SOUTH CAROLINA NATIVE INSTEAD HELPS ILLUMINATE THE MINDSET OF THE JIM CROW SOUTH WITHOUT JUSTIFYING IT MR THURMOND'S POLITICAL CAREER SERVES AS THE ENTRY POINT FOR A FASCINATING IF OVERLONG EXPLORATION OF HOW THE SOUTH HAS TRANSFORMED ITSELF FROM A CULTURAL AND ECONOMIC BACKWATER TO A THRIVING REGION WHERE RACE RELATIONS ARE OFTEN BETTER THAN IN OTHER PARTS OF THE COUNTRY SEN THURMOND IS CONSIDERED A STAUNCH CONSERVATIVE BUT HIS POLITICAL INSTINCTS HAVE ALWAYS BEEN ROOTED IN POPULISM NOT LAISSEZFAIRE HIS BOYHOOD HERO WAS BEN PITCHFORK TILLMAN WHO CHAMPIONED THE CAUSE OF POOR WHITE FARMERS AGAINST MERCHANTS AND YANKEE BUSINESSMEN HE LEFT THE DEMOCRATIC PARTY IN 1964 NOT BECAUSE BARRY GOLDWATER SUPPORTED FREE MARKETS BUT BECAUSE HE BACKED STATES' RIGHTS HE CHOSE NOT TO SUPPORT RONALD REAGAN AT THE 1968 GOP CONVENTION INSTEAD HE PROVIDED THE CRUCIAL DELEGATES THAT ALLOWED RICHARD NIXON TO WIN NARROWLY ON THE FIRST BALLOT IN 1980 WHEN MR REAGAN RAN AGAIN MR THURMOND PREFERRED ECONOMIC NATIONALIST JOHN CONNALLY AND SUFFERED ONE OF HIS FEW DEFEATS WHEN SOUTH CAROLINA REPUBLICANS GAVE MR REAGAN A LANDSLIDE VICTORY HIS PROTEGE THE LATE LEE ATWATER USED TO SAY THAT WHILE BOTH MESSRS REAGAN AND THURMOND LIKED TO KICK BIG GOVERNMENT AROUND MR THURMOND WANTED TO KISS IT FIRST MR THURMOND IS A GIFTED POLITICIAN POSSESSED OF A PHENOMENAL ABILITY TO REMEMBER NAMES AND A BURNING DESIRE TO INGRATIATE HIMSELF WITH ALL OF HIS CONSTITUENTS ALWAYS A PORK BARRELER HE NOW BENEFITS BLACK VOTERS WITH HIS FORAGING EXPEDITIONS FOR FEDERAL FUNDS YOUR BLACK FRIENDS WILL BE WITH YOU IF YOU BE SURE TO HELP THEM WITH THEIR PROJECTS SEN THURMOND ONCE TOLD A GOP COLLEAGUE FROM MISSISSIPPI HE ALSO UNDERSTOOD THE VALUE OF SYMBOLISM IN 1983 HE BACKED THE MARTIN LUTHER KING JR HOLIDAY THAT YEAR A BLACK COLLEGE AWARDED HIM AN HONORARY DEGREE AND HIS STATE'S BLACK MAYORS NAMED HIM LEGISLATOR OF THE YEAR HIS ABILITY TO PLACATE HIS ENEMIES AND REWARD HIS FRIENDS HAS LET HIM PULL OFF ONE HOUDINILIKE POLITICAL ESCAPE AFTER ANOTHER IN 1950 HE BECAME THE FIRST AND ONLY SENATOR EVER ELECTED AS A WRITEIN HE WAS ONE OF THE FEW SOUTHERN POLITICIANS TO SWITCH PARTIES SUCCESSFULLY LATER HE SENSED THE GROWING POWER OF BLACK VOTERS AND SKILLFULLY ADJUSTED HIS POLITICAL IMAGE ALTHOUGH MS COHODAS EFFECTIVELY DESCRIBES MR THURMOND'S AWESOME POLITICAL SKILLS SHE FAILS TO GO MUCH BENEATH THE PUBLIC PERSONA AND DESCRIBE THE MAN HIMSELF THERE IS A POTENTIAL GOLD MINE OF MATERIAL AT THE AGE OF 45 MR THURMOND MARRIED A MISS SOUTH CAROLINA WHO WAS HALF HIS AGE THEN WHEN HE WAS 66 HE MARRIED ANOTHER MISS SOUTH CAROLINA THIS ONE A THIRD OF HIS AGE AND PROCEEDED TO FATHER FOUR CHILDREN WHILE CAMPAIGNING HE HAS BEEN PHOTOGRAPHED STANDING ON HIS HEAD AND SLIDING DOWN A FIRE POLE AT AGE 76 ONE OF THE FEW POLITICAL RISKS HE HAS TAKEN IS TO WARN OF THE DANGERS OF SMOKING EVEN THOUGH TOBACCO IS HIS STATE'S TOP CASH CROP I WISH THEY COULD JUST SEND ALL THE TOBACCO OVERSEAS AND HELP THE TRADE DEFICIT HE SAYS SADLY HE APPARENTLY VOLUNTEERED LITTLE PERSONAL INFORMATION IN HIS INTERVIEWS WITH MS COHODAS AS A RESULT HE COMES ACROSS MERELY AS A NONINTROSPECTIVE CAREER POLITICIAN WHO IS POSSESSED OF PHENOMENAL DOGGEDNESS AND DRIVE MR THURMOND'S STAMINA IS SUCH THAT HE EXPECTS TO RUN FOR A SEVENTH TERM IN 1996 WHEN HE WILL BE PUSHING 100 HE IS THE ENERGIZER BUNNY OF AMERICAN POLITICS MR FUND IS A JOURNAL EDITORIAL WRITER 9303150086 930315 BLIZZARD LEAVES HUNDREDS OF MILLIONS OF DOLLARS IN DAMAGE HALTS AIR TRAVEL A WALL STREET JOURNAL NEWS ROUNDUP THE BLIZZARD THAT LASHED THE EAST COAST OVER THE WEEKEND CRATERING ROOFS AND BURYING CARS FROM GEORGIA TO MAINE IS EXPECTED TO COST INSURANCE COMPANIES HUNDREDS OF MILLIONS OF DOLLARS THE STORM HALTED ALMOST ALL AIRLINE TRAVEL ON THE EAST COAST OVER THE WEEKEND AND IT COULD TAKE SEVERAL DAYS FOR STRANDED PASSENGERS TO GET TO THEIR DESTINATIONS MOST AIRLINES HOWEVER WON'T INCUR FINANCIAL LOSSES ROADS AND RAIL LINES WERE CLOSED FURTHER DISRUPTING TRAVEL SEVERAL MILLION PEOPLE WERE LEFT WITHOUT ELECTRICITY AT ONE POINT THE BLIZZARD WHICH CLAIMED AT LEAST 105 LIVES SPAWNED 50 TORNADOES IN FLORIDA WIND GUSTS REACHED HURRICANE FORCE NEAR NEW YORK CITY EVEN AS THE SNOWFALL ENDED THE NATIONAL WEATHER SERVICE WAS WARNING THAT A HARD FREEZE COULD HIT THE DEEP SOUTH BY THIS MORNING THREATENING CROPS THE STORM WAS ONLY THE LATEST DISASTER FOR THE INSURANCE INDUSTRY TO DEAL WITH IT CAME JUST TWO WEEKS AFTER A BOMB BLAST RIPPED THROUGH NEW YORK'S WORLD TRADE CENTER CAUSING WHAT IS ESTIMATED AS MORE THAN 1 BILLION IN INSURED DAMAGES AND LAST DECEMBER'S NORTHEAST STORM WHICH APPEARED TO HAVE CAUSED MORE FLOOD DAMAGE THAN THIS WEEKEND'S BLIZZARD WILL COST INSURERS AN ESTIMATED 650 MILLION I THINK THE NOR'EASTER WAS MORE DAMAGING THAN THE LATEST STORM SAID AM BEST CO SENIOR VICE PRESIDENT JOHN SNYDER THIS PROBABLY CAUSED A COUPLE HUNDRED MILLION DOLLARS IN DAMAGE MOSTLY IN THE SOUTHEAST INSURANCE INDUSTRY LOSSES DON'T INCLUDE THE COST OF FLOOD DAMAGE WHICH IS EITHER UNINSURED OR COVERED BY THE NATIONAL FLOOD INSURANCE PROGRAM A FEDERAL FUND THAT INSURES COASTAL AREAS FOLLOWING LAST AUGUST'S HURRICANE ANDREW INSURERS PAID MORE THAN 16 BILLION IN CLAIMS MAKING IT THE COSTLIEST STORM IN US HISTORY FOR THOUSANDS OF STRANDED AIRLINE PASSENGERS THE WEEKEND'S STORM CAUSED PLENTY OF HEADACHES AT ONE POINT ALL MAJOR AIRPORTS NORTH OF CHARLOTTE NC WERE CLOSED ABOUT 1000 DELTA AIR LINES FLIGHTS OR NEARLY ONETHIRD OF THE CARRIER'S SYSTEM WERE CANCELED AS THE STORM CUT A SWATH OF DAMAGE FROM FLORIDA TO MAINE WINDS KEPT FLIGHTS GROUNDED AT DELTA'S ORLANDO FLA MINIHUB AS DID SNOW AT DELTA'S LARGEST HUB ATLANTA SNOW IN THE NEW YORK AREA GROUNDED DELTA'S EAST COAST SHUTTLE AS WELL AS SCORES OF INTERNATIONAL FLIGHTS SCHEDULED TO LEAVE FROM JOHN F KENNEDY AIRPORT A DELTA SPOKESMAN SAID ITS RESERVATION LINES WERE JAMMED BY PEOPLE TRYING TO RESCHEDULE FLIGHTS AND HE ADDED THAT IT COULD TAKE A DAY OR TWO BEFORE EVERYTHING IS BACK TO NORMAL AT ONE POINT SATURDAY 25 AIRPORTS SERVED BY AMR CORP'S AMERICAN AIRLINES WERE CLOSED AND THE CARRIER CANCELED 610 FLIGHTS OR ABOUT A QUARTER OF ITS SYSTEM THINGS WERE LITTLE BETTER YESTERDAY WHEN AMERICAN WAS FORCED TO CANCEL 530 FLIGHTS AS AIRPORTS REOPENED LATE YESTERDAY AN AMERICAN SPOKESWOMAN SAID THE AIRLINE PLANNED TO SHIFT TO LARGER PLANES AT ITS CHICAGO DALLAS/FORT WORTH AND MIAMI HUBS IN ORDER TO MOVE PASSENGERS WHO MAY HAVE BEEN STRANDED OR DELAYED BUT SHE ADDED IT COULD TAKE UNTIL TOMORROW OR WEDNESDAY UNTIL THE SYSTEM GETS BACK TO NORMAL AND PASSENGERS GET TO WHERE THEY WERE HEADED A CONTINENTAL AIRLINES SPOKESMAN SAID CLOSURE OF THE CARRIER'S NEWARK NJ HUB KEPT AT LEAST 300 FLIGHTS GROUNDED SATURDAY AND NEARLY THAT MANY YESTERDAY ALTHOUGH SOME INCOMING INTERNATIONAL FLIGHTS WERE ALLOWED TO LAND LATE YESTERDAY AT NEWARK THE AIRLINE A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC DIDN'T PLAN TO BEGIN REGULARLY SCHEDULED DOMESTIC SERVICE UNTIL TODAY USAIR SAID IT WOULD WAIT UNTIL TODAY BEFORE TRYING TO RESUME FLIGHTS OUT OF NEW YORK CITY EASTERN NEW YORK STATE AND EASTERN PENNSYLVANIA INCLUDING THE CARRIER'S PHILADELPHIA HUB OPERATIONS GOT UNDER WAY AGAIN LATE YESTERDAY AFTERNOON AT WASHINGTONAREA AIRFIELDS AND WERE EXPECTED TO RESUME LAST NIGHT AT PITTSBURGH AND CHARLOTTE NC THE AIRLINE A UNIT OF USAIR GROUP INC SAID THAT IT COULDN'T PROVIDE A FIGURE FOR THE OVERALL NUMBER OF CANCELED FLIGHTS BUT THAT THEY NUMBER IN THE HUNDREDS WITH THOUSANDS OF PEOPLE STRANDED AROUND THE COUNTRY THE STORM'S DISRUPTION WAS THE MOST EXTENSIVE IN RECENT MEMORY AND I WOULD INCLUDE HURRICANES HUGO AND ANDREW AND HUGO CAUSED US A LOT OF GRIEF A SPOKESMAN SAID IN ST PAUL MINN A NORTHWEST AIRLINES SPOKESMAN SAID ABOUT 320 FLIGHTS WERE CANCELED ON SATURDAY AND ANOTHER 215 ON SUNDAY OUR TRANSATLANTIC HUB IS IN BOSTON HE NOTED WE WERE ABLE TO DIVERT ALL OF THE WESTBOUND TRANSATLANTIC FLIGHTS TO MINNEAPOLIS AND DETROIT WHERE THE STORM WASN'T A MAJOR FACTOR PASSENGERS FROM THOSE FLIGHTS WERE EITHER SENT ON OR PUT UP IF THEY WERE HEADED TO SHUTDOWN EAST COAST DESTINATIONS IN TERMS OF THE NUMBER OF CITIES AFFECTED THE WEEKEND STORM WAS THE MOST DISRUPTIVE EVER FOR THE WINGS HOLDINGS INC UNIT THE SPOKESMAN SAID BUT HE NOTED THAT A 27INCH SNOWFALL THAT HIT THE COMPANY'S HUB AT MINNEAPOLIS LAST YEAR MAY HAVE CREATED MORE PROBLEMS WE WERE ABLE TO WEATHER THIS STORM A LOT BETTER BECAUSE OUR MAJOR HUBS ARE IN MINNEAPOLIS MEMPHIS AND DETROIT HE SAID 9303150085 930315 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 3/4 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 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 IN MULTIPLES OF 1000 317 30 DAYS 318 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 267 TWO MONTHS 268 THREE MONTHS 283 SIX MONTHS 300 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 305 30 DAYS 305 60 DAYS 305 90 DAYS 310 120 DAYS 313 150 DAYS 315 180 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 1/4 3 1/8 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 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 741 60 DAYS 749 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLE RATE 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 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLE RATE 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 9303150084 930315 REVIEW & OUTLOOK EDITORIAL ASIDES YEAR OF SOME WOMEN FEMINIST GROUPS CHAMPION HAVING MORE WOMEN IN POLITICS BUT IN FACT THEY'RE INTERESTED ONLY IN PROMOTING THEIR LEFTLEANING AGENDA THERE'S THE FAMOUS EXAMPLE OF HOW THEY OPPOSED OR IGNORED THE FOUR MODERATE REPUBLICANS WHO RAN FOR THE US SENATE IN 1990 BUT CONSIDER THE BIAS IN CANADA WHERE DEFENSE MINISTER KIM CAMPBELL IS AMONG THE FAVORITES TO SUCCEED BRIAN MULRONEY AS PRIME MINISTER MS CAMPBELL IS PROCHOICE ON ABORTION AND FAVORS GUN CONTROL AND GAY RIGHTS BUT SHE'S STILL BEYOND THE PALE TO FEMINISTS BECAUSE SHE REMAINS GASP A CONSERVATIVE A COALITION OF 550 FEMINIST GROUPS IS OPPOSING HER BECAUSE SHE BACKED PARTY POSITIONS IN FAVOR OF BUDGET CUTS AND A FREE TRADE TREATY WITH THE US WHICH THEY CLAIM WILL COST WOMEN JOBS SHE CALLS HERSELF A CONSERVATIVE FEMINIST BUT I UNDERSTAND THOSE TERMS TO BE COMPLETELY CONTRADICTORY SAYS THINKER MARGARET LITTLE OF SIMON FRASER UNIVERSITY SO MUCH FOR THE FUTURE OF AN INCLUSIVE SOCIETY 9303150083 930315 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9303150082 930315 ECONOMY PRODUCER PRICES CLIMBED 04 FOR FEBRUARY FLAREUP WAS THE BIGGEST SINCE '90 BUT INFLATION JUMP ISN'T SEEN LIKELY BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRICES AT THE WHOLESALE LEVEL IN FEBRUARY FLARED UPWARD 04 FROM JANUARY THE LARGEST INCREASE SINCE 1990 ACCORDING TO THE LABOR DEPARTMENT THE PRODUCER PRICE INDEX RECORDED CONSIDERABLE JUMPS LAST MONTH IN THE COST OF ENERGY NEW CARS AND TOBACCO TRIGGERING CONCERN ABOUT THE FLEDGLING ECONOMIC RECOVERY BUT ECONOMISTS CAUTIONED THAT THE INCREASE FOLLOWING A SEASONALLY ADJUSTED 02 RISE IN JANUARY ISN'T ENOUGH TO WARRANT PANIC THIS ISN'T A SCREAMING ACCELERATION OF INFLATION IT'S AN UPWARD DRIFT SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY HOME HEATING OIL PRICES SOARED 185 LEADING TO AN INCREASE OF 17 IN OVERALL ENERGY PRICES ECONOMISTS DISCOUNTED THE LONGTERM SIGNIFICANCE OF THE JUMP NOTING THAT FEBRUARY WAS COLDER THAN EXPECTED AND THAT ENERGY PRICES TRADITIONALLY ARE UNSTABLE A MORE IMPORTANT INDICATOR ACCORDING TO ECONOMISTS IS THE 03 RISE IN THE SOCALLED CORE RATE OF INFLATION WHICH LEAVES OUT FOOD AND ENERGY FIGURES BECAUSE THEY VARY SO MUCH FROM MONTH TO MONTH FOOD PRICES INCHED DOWN 01 IN FEBRUARY ECONOMISTS ATTRIBUTED MUCH OF THE CORE INCREASE TO A 06 RISE IN NEWCAR PRICES AND A 1 JUMP IN TOBACCO PRICES DESPITE FEBRUARY'S CLIMB AND A 04 CORERATE INCREASE IN JANUARY SAMUEL KAHAN CHIEF ECONOMIST FOR FUJI GOVERNMENT SECURITIES INC SAID HE DOESN'T SEE CONDITIONS THAT WOULD LEAD TO A SUSTAINED RESURGENCE OF INFLATION MR KAHAN CITED THREE INFLATIONARY FACTORS THAT CURRENTLY AREN'T EVIDENT A MANUFACTURING SECTOR OPERATING AT FULL CAPACITY A POLICY OF AGGRESSIVE MONETARY AND FISCAL STIMULUS AND PERHAPS MOST IMPORTANTLY A LONGTERM PERSISTENCE OF PRICE INCREASES FOR THE TIME BEING IT LOOKS LIKE THE CONDITIONS FOR RUNUP INFLATION ARE NOT IN PLACE SAID MR KAHAN HE SAID PRESIDENT CLINTON'S PROPOSED ECONOMICSTIMULUS PACKAGE IS TOO SMALL TO POSE AN INFLATIONARY THREAT BUT HE WARNED THAT A STRONGER GOVERNMENTSTIMULUS PACKAGE COUPLED WITH A RECOVERING ECONOMY COULD SPARK INFLATION SEPARATELY THE DEPARTMENT OF COMMERCE ANNOUNCED THAT BUSINESS INVENTORIES REMAINED FLAT IN JANUARY FOLLOWING SEASONALLY ADJUSTED INCREASES OF 02 IN NOVEMBER AND 03 IN DECEMBER HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR FEBRUARY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM FEBRUARY 1992 HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN JANUARY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9303150081 930315 INTERNATIONAL WORLD WIRE COMPILED BY JEFF SUTHERLAND THE US AND TAIWAN FAILED TO BRIDGE THEIR DIFFERENCES AFTER FIVE DAYS OF TALKS ON THE PROTECTION OF INTELLECTUALPROPERTY RIGHTS RAISING THE POSSIBILITY OF SANCTIONS AGAINST TAIWAN NEXT MONTH THE US HAS SINGLED OUT TAIWAN FOR ACTION BECAUSE OF TAIWAN'S APPARENT FAILURE TO PROTECT COPYRIGHTS PATENTS AND TRADEMARKS AN ALLIANCE THAT INCLUDES MAJOR US SOFTWARE FIRMS ESTIMATES THAT PIRACY OF MOVIES RECORDED MUSIC SOFTWARE AND BOOKS BY TAIWANESE MANUFACTURERS BROUGHT LOSSES OF 669 MILLION LAST YEAR TAIWANESE OFFICIALS SAID THE US HAS DEMANDED THAT TAIWAN SIGN A 1989 BILATERAL COPYRIGHT AGREEMENT BY APRIL 15 WITHOUT CHANGES OR FACE POSSIBLE RETALIATION TAIWAN'S LEGISLATURE APPROVED THE AGREEMENT IN JANUARY BUT LEGISLATORS STRUCK EIGHT PROVISIONS FROM IT MAINTAINING THEY SUBJECT TAIWAN TO STANDARDS FAR MORE RIGOROUS THAN INTERNATIONAL NORMS THE US ALSO IS DEMANDING THAT THE LEGISLATURE ENACT A PENDING BILL THAT WOULD PAVE THE WAY FOR LEGALIZATION OF TAIWAN'S CABLETV INDUSTRY THE US SAYS MANY OF TAIWAN'S ILLEGAL CABLETV OPERATORS SHOW MOVIES IN VIOLATION OF COPYRIGHTS DENMARK'S UNEMPLOYMENT RATE IN JANUARY HIT 12 THE HIGHEST LEVEL SINCE THE 1930S AND UP FROM 117 IN DECEMBER THE GOVERNMENT SEIZED ON THE DATA FOR ITS CAMPAIGN TO SECURE A YES VOTE MAY 18 ON THE EUROPEAN COMMUNITY UNITY TREATY REFERENDUM SAYING APPROVAL IS VITAL IF UNEMPLOYMENT IS TO BE CUT DANISH VOTERS REJECTED THE TREATY LAST JUNE BUT THE EC GRANTED THE COUNTRY EXEMPTIONS ON A COMMON CURRENCY DEFENSE AND OTHER ISSUES IN HOPES OF SECURING APPROVAL THE LATEST POLL INDICATED THAT 61 OF DANES FAVOR THE TREATY WHILE 28 OPPOSE IT CHINA ANNOUNCED STRICTER RULES FOR NEW AIRLINES IN AN EFFORT TO SLOW THE PROLIFERATION OF TINY ILLEQUIPPED OPERATIONS MORE THAN 20 SMALL AIRLINES WERE ESTABLISHED LAST YEAR AS THE NUMBER OF AIR TRAVELERS SURGED 30 AVIATION OFFICIALS HAVE SAID THE SHARP GROWTH OVERTAXED PILOTS GROUND CREWS AND SAFETY INSPECTORS AND WAS A FACTOR IN SEVERAL FATAL AIR CRASHES THE REGULATIONS REQUIRE NEW AIRLINES TO HAVE AT LEAST THREE PLANES AND 80 MILLION YUAN 137 MILLION IN CAPITAL AND TO EMPLOY SPECIFIED NUMBERS OF AIRCRAFT MAINTENANCE WORKERS AND GROUND CREWS MOLDOVA'S PARLIAMENT PASSED A PRIVATIZATION BILL THAT WOULD PUT 30 OF THE FORMER SOVIET REPUBLIC'S MORIBUND INDUSTRY INTO PRIVATE HANDS OVER THE NEXT TWO YEARS PRIVATIZATION OF MORE THAN 1600 ENTERPRISES WOULD TAKE PLACE WITH THE DISTRIBUTION OF VOUCHERS GOOD FOR SHARES WHILE A SMALL NUMBER OF COMPANIES WOULD BE SOLD FOR FOREIGN CURRENCY THE LAW PERMITS FOREIGN OWNERSHIP OF SMALL AND MEDIUMSIZE ENTERPRISES OVERSEAS COMPANIES HAD 1345 OPERATIONS IN HONG KONG AS OF JUNE LAST YEAR A 53 JUMP FROM THE PREVIOUS YEAR ACCORDING TO A SURVEY BY THE HONG KONG GOVERNMENT IT SAID THEY WERE ATTRACTED BY THE COLONY'S BANKING AND FINANCIAL FACILITIES INFRASTRUCTURE ECONOMIC POLICY AND REGIONAL LOCATION THE SURVEY SAID 588 OF THE OPERATIONS WERE REGIONAL HEADQUARTERS AND 757 REGIONAL OFFICES US COMPANIES CLAIMED THE LARGEST NUMBER OF REGIONAL HEADQUARTERS WITH 206 FOLLOWED BY JAPAN WITH 74 AND BRITAIN WITH 73 SOUTH KOREA SEEKING TO FOSTER ITS NASCENT AIRCRAFT INDUSTRY WILL INVEST 33 TRILLION WON 417 BILLION IN THE SECTOR BY 2002 PROJECTED INVESTMENT WILL INCLUDE 19 TRILLION WON FOR RESEARCH AND DEVELOPMENT WORKS AND 14 TRILLION WON FOR FACILITY EXPANSION THE GOVERNMENT PLANS TO SPEND 250 BILLION WON TO DEVELOP A MIDSIZE 50PASSENGER AIRPLANE BY 1998 AND PARTICIPATE IN AN INTERNATIONAL CONSORTIUM TO BUILD A LARGE PLANE BY 2000 THE EUROPEAN COMMUNITY COMMISSION EXTENDED FOR TWO MONTHS PROVISIONAL ANTIDUMPING DUTIES ON IMPORTS OF SEAMLESS IRON AND NONALLOY STEEL PIPES FROM HUNGARY POLAND CROATIA AND THE FORMER CZECHOSLOVAKIA THE MOVE GIVES THE COMMISSION TIME TO CONCLUDE ITS INVESTIGATION INTO WHETHER SUCH IMPORTS HAVE BEEN DUMPED ON THE EC MARKET PROVISIONAL DUTIES WERE IMPOSED BECAUSE AN INITIAL INVESTIGATION INDICATED EUROPEAN INDUSTRIES COULD BE HURT BY SALES OF LOWPRICED EASTERN EUROPEAN STEEL ON THE EC MARKET AT THE SAME TIME SIR LEON BRITTAN EC FOREIGN TRADE CHIEF SAID THE PANEL WOULD RESIST PROTECTIONIST CALLS FOR STEPPEDUP BARRIERS TO EAST EUROPEAN IMPORTS HE SAID PROTECTIVE CLAUSES IN TRADEOPENING AGREEMENTS WITH THE EASTERN EUROPEAN COUNTRIES SHOULD BE USED AS A WEAPON OF LAST RESORT BY THE EC UNDER EC AND EASTERN EUROPE AGREEMENTS THE 12NATION BLOC CAN INVOKE SUCH CLAUSES TO PROTECT ITS PRODUCERS IF IMPORTS CAUSE SERIOUS DISTURBANCE CHINA HAS MADE PROGRESS IN ITS BATTLE TO SLOW THE GROWTH OF ITS POPULATION OF 11 BILLION THE PEOPLE'S DAILY NEWSPAPER SAID 21 MILLION BABIES WERE BORN IN 1992 ALMOST 15 MILLION FEWER THAN IN 1991 THE NET POPULATION GROWTH WAS 1348 MILLION 142 MILLION LESS THAN IN 1991 THE AUSTRALIAN ARMY WILL TEST THE FEET OF 5000 SOLDIERS WITH LASERS IN A SEARCH FOR A BETTER BOOT EXISTING BOOTS WERE DESIGNED IN 1962 9303150080 930315 FEDERAL EXPRESS POSTS 3RDPERIOD PROFIT AS ITS OVERSEAS PERFORMANCE IMPROVES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP SWUNG TO A PROFIT FOR ITS FISCAL THIRD QUARTER FROM A YEAREARLIER LOSS AS ITS PERFORMANCE OVERSEAS CONTINUED TO IMPROVE THE PACKAGEDELIVERY CONCERN BASED IN MEMPHIS TENN REPORTED EARNINGS FOR THE QUARTER ENDED FEB 28 OF 105 MILLION OR 19 CENTS A SHARE A YEAR EARLIER FEDERAL EXPRESS HAD A NET LOSS OF 1934 MILLION OR 358 A SHARE REFLECTING A 254 MILLION CHARGE FOR A RESTRUCTURING IN EUROPE OPERATING PROFIT TOTALED 621 MILLION COMPARED WITH A LOSS OF 18 MILLION EXCLUDING THE RESTRUCTURING CHARGE REVENUE ROSE 27 TO 194 BILLION FROM 189 BILLION THE RESULTS RELEASED AFTER THE MARKETS CLOSED FRIDAY WERE IN LINE WITH ANALYSTS' EXPECTATIONS OBSERVERS NOTED THAT FEDERAL EXPRESS DID BETTER THAN EXPECTED IN ITS INTERNATIONAL OPERATIONS BUT SHOWED DISAPPOINTING RESULTS IN ITS PROFITABLE DOMESTIC BUSINESS OVERSEAS FEDERAL SHAVED ITS LOSS TO 609 MILLION FROM 138 MILLION A YEAR EARLIER THE YEAREARLIER FIGURE IS ADJUSTED FOR AN ACCOUNTING CHANGE AND EXCLUDES THE RESTRUCTURING CHARGE THE COMPANY IS STILL REAPING THE BENEFITS OF THAT RESTRUCTURING IN WHICH IT SCALED BACK ITS EUROPEAN OPERATIONS AND ARRANGED FOR LOCAL FIRMS TO HANDLE MUCH OF ITS PACKAGE DELIVERY IN EUROPE IN THE MOST RECENT QUARTER FEDERAL ALSO BENEFITED FROM LOWER FUEL COSTS A RESCHEDULING OF INTERNATIONAL FLIGHTS AND THE USE OF NEWER EASIERTOMAINTAIN AIRCRAFT ON THOSE ROUTES THE INTERNATIONAL FREIGHT BUSINESS FEDERAL INHERITED WHEN IT BOUGHT FLYING TIGER IN 1989 REMAINED WEAK REVENUE AND PROFITABILITY CONTINUED TO DROP BUT INTERNATIONAL AIRFREIGHT VOLUMES FELL JUST 35 IN THE QUARTER AN IMPROVEMENT FROM THE SECOND QUARTER WHEN VOLUMES FELL FOUR TIMES AS FAST FEDERAL EXPRESS SAID ITS DOMESTIC PROFIT MARGIN DROPPED TO 86 IN THE QUARTER FROM 105 DOMESTIC COSTCUTTING MEASURES FAILED TO CLOSE THE GAP CAUSED BY PAST PRICE CUTS PACKAGE COSTS FELL 4 BUT PACKAGE REVENUE DECLINED 6 IN THE QUARTER A SEASONALLY SLOW PERIOD THE COMPANY EXPERIENCED A TOUGHERTHANUSUAL BUSINESS CLIMATE AND SUFFERED FROM ROUGH WINTER WEATHER SAID PAUL SCHLESINGER AT DONALDSON LUFKIN & JENRETTE FEDERAL EXPRESS PLANS TO FOCUS ON KEEPING STAFFING COSTS DOWN AND KEEPING OVERALL EXPENSES FLAT SAID ALAN GRAF CHIEF FINANCIAL OFFICER HE SAID PROFITABILITY CONTINUED TO SUFFER FROM THE SHIFT IN THE COMPANY'S PACKAGE MIX AWAY FROM NEXTMORNING DELIVERIES TOWARD LOWERMARGIN AFTERNOON OR TWODAY DELIVERIES AND COMPETITIVE PRICING IN THE INDUSTRY ANALYSTS EXPECT BIG IMPROVEMENTS FOR THE CURRENT QUARTER WHICH IS SEASONALLY STRONGER THAN THE FEBRUARY PERIOD ANALYSTS SAID THE COMPANY EXPECTS TO POST EARNINGS OF ABOUT 1 A SHARE FOR THE QUARTER COMPARED WITH 66 CENTS A SHARE FOR THE YEAREARLIER PERIOD IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY FEDERAL EXPRESS SHARES FELL 125 TO 55875 9303150079 930315 LEISURE & ARTS TELEVISION JOANNE WOODWARD AS A PROFESSOR IN LOVE BY ROBERT GOLDBERG TELEVISION IS A FOREIGN COUNTRY THEY DO THINGS DIFFERENTLY THERE THAT'S WHY FOR CERTAIN BOOKS CERTAIN CONCEPTS CERTAIN ACTORS THE JOURNEY TO THE SMALL SCREEN CAN BE HAZARDOUS AND FILLED WITH CULTURE SHOCK THIS WEEK TWO NOTABLE ACTRESSES WHO RARELY WORK IN TELEVISION JOANNE WOODWARD AND ANJELICA HUSTON COME TO TV IN ADAPTATIONS OF TWO BESTSELLING NOVELS MATURE TOPICS MATURE ACTING WITH SUCH DISTINGUISHED ELEMENTS IN PLACE WE CAN ONLY HOLD OUR BREATH AND HOPE FOR THE BEST MS WOODWARD ARRIVES WITH THE TV VERSION OF ALISON LURIE'S PULITZER PRIZEWINNING NOVEL FOREIGN AFFAIRS TNT WEDNESDAY 810 PM EST IT'S THE STORY OF A MIDDLEAGED LOVE AFFAIR QUITE AN EXOTIC CONCEPT FOR PRIMETIME TELEVISION VINNIE MINER MS WOODWARD IS AN ENGLISH PROFESSOR WITH A BUTTONED SWEATER SENSIBLE SHOES AND A SHARP TONGUE CHUCK MUMPSON BRIAN DENNEHY IS A HANDSOME NEANDERTHAL IN A COWBOY HAT WHO'S MADE HIS MONEY IN THE SEWAGE BUSINESSEVERYTHING FROM THE BOTTOM ON DOWN THEY DON'T APPEAR TO HAVE MUCH IN COMMON LITTLE LORD FAUNTLEROY' CHUCK EXCLAIMS I WATCHED THIS ON TV I DIDN'T KNOW THE BOOK HAD COME OUT CHUCK AND VINNIE ARE SEATED NEXT TO EACH OTHER ON A PLANE BOUND FOR LONDON AND AFTER THAT CHUCK WILL SIMPLY NOT LEAVE HER ALONE HE PURSUES VINNIE ACROSS GREAT BRITAIN WITH A SINGLEMINDED ARDOR FROM A LIBRARY IN OXFORD TO A FANCYFOOD SHOP IN LONDON TO A CLASSIC ENGLISH COUNTRY HOUSE AND WHILE VINNIE INITIALLY SEES HIM AS SOMETHING OUT OF THE CHORUS LINE OF OKLAHOMA' SHE EVENTUALLY MUST ADMIT HE HAS A CERTAIN AWFUL FASCINATION MR DENNEHY AND MS WOODWARD ARE WELLMATCHED IN THIS INEVITABLE ATTRACTION OF OPPOSITES MR DENNEHY'S CHUCK IS CRUDE BOISTEROUS AND GOODHEARTED A HULKING NAIF ABROAD MS WOODWARD'S VINNIE IS RESERVED ACERBIC AMAZED TO FIND HERSELF IN THE MIDDLE OF A ROMANCE AT HER AGE WITH SUCH AN UNLIKELY PARTNER IT'S A TREAT TO SEE A MATURE RELATIONSHIP PORTRAYED BY ACTORS THIS SKILLED BUT AS SWEET AND DIVERTING AS FOREIGN AFFAIRS MAY BE THIS MADEFORCABLE MOVIE IS REALLY QUITE INSUBSTANTIAL NOT MUCH MORE THAN A LITTLE PIECE OF SPUN SUGAR MAYBE THE NOVEL HAD MORE MEAT TO IT BUT IN THIS ADAPTATION WRITTEN BY CHRIS BRYANT AND PRODUCED BY PATRICIA CLIFFORD THE STORY LINE IS POSITIVELY NEGLIGIBLE OTHER LOVE AFFAIRS OTHER CHARACTERS FLIT ACROSS THE SCREEN FOR REASONS THAT ARE HARD TO FATHOM DELICATE AND GENTLE THIS IS A BRIEF ROMANCE THAT FLARES UP THEN FADES AWAY MS HUSTON BRINGS US A ROMANCE THAT'S MORE DURABLE THE ABIDING TORMENTED LOVE OF A FAMILY OVER THE DECADES IN A TWOPART RENDITION OF SUE MILLER'S BESTSELLING NOVEL FAMILY PICTURES ABC MARCH 21 AND 22 911 PM EST TRACKING THE SAGA OF THE EBERLIN CLAN FROM 1950S SEATTLE TO '70S GREENWICH VILLAGE AND BACK AGAIN FAMILY PICTURES CENTERS ON WHAT HAPPENS TO A PERFECT FAMILY WHEN AN AUTISTIC CHILD IS BORN INTO ITS MIDST NOW THIS IS A PREMISE THAT MIGHT SEEM DESTINED TO YIELD ONE OF TV'S TYPICAL DISEASE OF THE WEEK EXERCISES BUT FAMILY PICTURES MANAGES TO AVOID THAT TRAP BY FOCUSING NOT SO MUCH ON THE TROUBLED CHILD AS THE REST OF THE FAMILY THE WAY THEY COPE WITH THEIR EMOTIONAL BURDENS AND UPHEAVALS THE MOVIE CHARTS AN INTRICATE CYCLE OF BLAME AND AFFECTION THE INTERACTION BETWEEN LAINEY MS HUSTON AND HER HUSBAND DAVID SAM NEILL LAINEY IS VOLATILE A VOLCANO OF EMOTION AND GUILT DAVID IS A PSYCHIATRIST COOL AND ANALYTICAL BOTH ARE TORN OVER THEIR AUTISTIC CHILD RANDALL BUT THEIR SOLUTIONS ARE DIFFERENT DAVID BELIEVES RANDALL WOULD FARE BETTER IN AN INSTITUTION LAINEY REFUSES TO SEND HER CHILD AWAY DESPITE THE WAY HE DISRUPTS THE HOUSEHOLD SHE SEES DAVID'S PLAN AS COLDHEARTED INDIFFERENT BUT TO DAVID LAINEY'S DEVOTION TO RANDALL IS OBSESSIVE IT'S HARMING THE FAMILY AND SHORTCHANGING THE OTHER CHILDREN THIS EMOTIONAL TUG OF WAR LEADS TO A SERIES OF SEPARATIONS AND RECONCILIATIONS AND A TURBULENT COMING OF AGE FOR NINA KYRA SEDGWICK MACK DERMOT MULRONEY AND THE THREE OTHER KIDS JENNIFER MILLER'S SCRIPT CREATES A FINELYSHADED PORTRAIT OF FAMILY DYNAMICS CASTING A KEEN EYE ON THE JEALOUSIES THAT PULL A FAMILY TOGETHER AND RIP IT APART LAINEY IS AN ESPECIALLY INTRICATE CHARACTER MY MOTHER WAS SCARY WHEN WE WERE YOUNG SHE HAD THIS INTENSE QUALITY IF SHE WAS ANGRY SHE WAS REALLY ANGRY OR SHE'D SWOOP DOWN AND HUG US INCREDIBLY HARD WE NEVER REALLY KNEW WHICH WAY SHE WAS GOING TO GO IT'S A PRIZE ROLE FOR MS HUSTON A CIGARETTE DANGLING FROM HER FINGERS HER EYES SENDING OUT SPARKS SHE GIVES A WONDERFUL PORTRAYAL OF A SUBURBAN HOUSEWIFE BOTH MATERNAL AND SLIGHTLY MAD AND HER LAINEY IS BALANCED BY THE SUBTLE AND LOWKEY PERFORMANCE OF MR NEILL AS DAVID BUT AS A STORY FAMILY PICTURES HAS PROBLEMS OVER TWO NIGHTS AND FOUR HOURS THIS MOVIE VEERS BACK AND FORTH BETWEEN DRAMA AND SOAP OPERA THE CHARACTERS ARE WELLDRAWN THE INTERPERSONAL RELATIONSHIPS HAVE A CERTAIN DEPTH AND YET IT COMES OFF AS LITTLE MORE THAN A TEARJERKER THERE'S A FINE LINE HERE BETWEEN MEANINGFUL AND MUSH AS YOU CAN SEE IN NINA'S SUMMATION AT THE END OF THE FOUR HOURS EVERY CHILD THAT'S BORN REPRESENTS SUCH RISKTAKING ON THE PART OF THE PARENTS THERE'S SO MUCH POTENTIAL FOR PAIN THAT ANY CHILD'S EXISTENCE IS A MIRACLE AND THAT IS THE STRANGEST MOST WONDERFUL THING OF ALL SO THIS WEEK WITH FAMILY PICTURES AND FOREIGN AFFAIRS WE'RE LEFT WITH MATERIAL THAT'S MORE INSIGHTFUL THAN SOME BUT NOT HALF AS GOOD AS IT SHOULD HAVE BEEN STILL GIVEN THE FINE PERFORMANCES OF MS WOODWARD MR DENNEHY MS HUSTON AND MR NEILL LET'S JUST CALL THIS WEEK AN ACTORS' SHOWCASE 9303150077 930315 MINE CONCERN'S SHARES FALL ON COMPLAINTS BY BABBITT ABOUT LAW NEW YORK INVESTORS DROVE DOWN AMERICAN BARRICK RESOURCES CORP'S STOCK 6 AFTER SECRETARY OF THE INTERIOR BRUCE BABBITT SINGLED THE COMPANY OUT AS AN EXAMPLE OF WHAT'S WRONG WITH THE EXISTING US MINING LAW MR BABBITT CALLED LUDICROUS A LAW DATING BACK TO 1872 THAT GIVES COMPANIES LIKE AMERICAN BARRICK THE RIGHT TO ACQUIRE MINING LAND CHEAPLY FROM THE FEDERAL GOVERNMENT HE MADE IT CLEAR THAT HIS CRITICISM WASN'T DIRECTED AT TORONTOBASED AMERICAN BARRICK WHICH HAS EXTENSIVE US INTERESTS BUT AT THE MINING LAW RIGHT NOW AMERICAN BARRICK IS POISED TO BUY THE SITE OF ITS BIG GOLDSTRIKE MINE IN NEVADA FOR ABOUT 10000 MR BABBITT TESTIFYING AT A HOUSE OF REPRESENTATIVES SUBCOMMITTEE HEARING ESTIMATED THE MINE CONTAINS ABOUT 10 BILLION IN GOLD UNDER PROPOSED REFORMS TO THE MINING LAW AMERICAN BARRICK COULD END UP PAYING A PERCENTAGE OF ITS REVENUE AS ROYALTIES TO THE US GOVERNMENT BASED ON CURRENT MARKET PRICES THIS COULD AMOUNT TO 800 MILLION TO 125 BILLION OVER THE LIFE OF THE MINE MR BABBITT SAID AS NEWS OF THE TESTIMONY SWIRLED THROUGH THE MARKET EARLY FRIDAY INVESTORS DROVE AMERICAN BARRICK'S STOCK DOWN ON THE NEW YORK STOCK EXCHANGE AS MUCH AS 225 A SHARE TO 1475 THE STOCK LATER RECOVERED TO CLOSE AT 16 DOWN 1 AS THE COMPANY'S POSITION ON THE ISSUE SPREAD MINING LAW REFORM ISN'T A NEW IDEA CONGRESS HAS BEEN TALKING ABOUT THE SUBJECT FOR SEVERAL YEARS BUT WITH A NEW ADMINISTRATION IN PLACE ANALYSTS AND MINING EXECUTIVES NOW SAY WASHINGTON FINALLY SEEMS WILLING TO PASS A BILL THAT WILL LEVY NEW CHARGES ON COMPANIES' MINING ON FEDERAL LAND HOWEVER ANALYSTS COULDN'T AGREE ON WHAT THIS WOULD MEAN FOR AMERICAN BARRICK CURRENTLY THE COMPANY OWNS THE MINERAL CLAIMS AT THE GOLDSTRIKE MINE BUT NOT THE LAND ITSELF 9303150076 930315 NEW YORK SUES EPA CHALLENGING RULES ON ACIDRAIN CONTROL ALBANY NY NEW YORK STATE OFFICIALS FILED A LAWSUIT AGAINST THE US ENVIRONMENTAL PROTECTION AGENCY CHALLENGING ACIDRAIN REGULATIONS ADOPTED BY THE BUSH ADMINISTRATION THE REGULATIONS WHICH TOOK EFFECT FEB 10 ALLOW BUSINESSES TO BUY AND SELL RIGHTS TO EMIT ACIDRAINCAUSING POLLUTANTS IN EXCESS OF LIMITS MANDATED BY CONGRESS ADVOCATES OF THE POLLUTIONRIGHTS PROGRAM BELIEVE THE MARKETBASED REGULATIONS WILL SPUR COMPANIES TO COMPLY WITH CLEAN AIR LAWS MORE EFFICIENTLY CRITICS COUNTER THAT SPECIFIC MANDATES WOULD BE MORE EFFECTIVE IN LIMITING POLLUTION THE POLLUTIONRIGHTS PLAN SEEKS TO CUT NATIONWIDE ACIDRAIN EMISSIONS IN HALF BY THE YEAR 2000 BUT NEW YORK ATTORNEY GENERAL ROBERT ABRAMS AND STATE ENVIRONMENTAL CONSERVATION COMMISSIONER THOMAS C JORLING SAID THAT THE REGULATIONS FAIL TO PROVIDE ANY OVERSIGHT MECHANISM TO ENSURE THAT ALL REGIONS OF THE COUNTRY DECREASE EMISSIONS PROPORTIONALLY INSTEAD THEY CHARGED REGULATIONS COULD ALLOW HEAVY POLLUTERS IN THE MIDWEST TO BUY CREDITS FROM EMISSION SOURCES IN THE EAST WHICH THEY SAID WOULD DELAY EMISSION CONTROLS THAT WOULD REDUCE ACID RAIN IN SENSITIVE AREAS SUCH AS THE ADIRONDACK MOUNTAIN REGION OF UPSTATE NEW YORK THE ADIRONDACK COUNCIL A NEW YORK ENVIRONMENTAL GROUP THAT JOINED IN THE LAWSUIT SAID IT HOPES TO NEGOTIATE BETTER REGULATIONS WITH NEW EPA OFFICIALS APPOINTED BY THE CLINTON ADMINISTRATION BUT AN EPA OFFICIAL SAID WE THINK THE FEARS ARE GROUNDLESS ADDING WE DON'T THINK THAT THE ALLOWANCE PROGRAM WILL HAVE ANY ADVERSE EFFECT WHATSOEVER AS FAR AS OBTAINING THE GOAL OF THE ACIDRAIN PROGRAM 9303150075 930315 THE OUTLOOK WHITE HOUSE WALKS THE NAFTA TIGHTROPE BY BOB DAVIS WASHINGTON DESPITE PRESIDENT CLINTON'S TOUGH TALK ON TRADE THE US IS READY TO MAKE BIG CONCESSIONS TO CANADA AND MEXICO IN NEGOTIATIONS STARTING WEDNESDAY ON ENVIRONMENTAL AND LABOR ISSUES BUT IF THE ADMINISTRATION CEDES TOO MUCH THE NORTH AMERICAN FREE TRADE AGREEMENT COULD GO DOWN TO DEFEAT IN CONGRESS NAFTA FACES A TUG OF WAR THAT COULD TEAR IT APART TO THE DETRIMENT OF TRADE AND PROSPERITY IN NORTH AMERICA YANKING ON ONE SIDE MEXICO AND TO SOME DEGREE CANADA SAY THEY REFUSE TO YIELD SOVEREIGNTY TO ANY TRINATIONAL BOARDS NEGOTIATED TO POLICE NAFTA TUGGING ON THE OTHER SIDE US LABOR UNIONS ENVIRONMENTALISTS AND MANY LAWMAKERS DEMAND THAT THESE BOARDS HAVE TOUGH ENFORCEMENT POWERS OTHERWISE THEY FEAR NAFTA WILL UNDERMINE WAGES AND DEGRADE THE CONTINENT'S ENVIRONMENT PRESIDENT CLINTON JOINED THE FIGHT DURING THE PRESIDENTIAL CAMPAIGN WHEN HE ENDORSED NAFTA BUT ONLY ON THE CONDITION THAT THE US NEGOTIATE NORTH AMERICAN LABOR AND ENVIRONMENTAL COMMISSIONS WITH THE POWER TO LEVY FINES AND SANCTIONS IF WE DON'T HAVE THE POWER TO ENFORCE THE LAWS ON THE BOOKS WHAT GOOD IS THE AGREEMENT MR CLINTON ASKED IN OCTOBER BUT AFTER FIELDING COMPLAINTS FROM MEXICO AND CANADA AND FROM SUPPORTERS OF NAFTA WHO FEAR THE BOARDS WOULD PUSH DRACONIAN SOLUTIONS MR CLINTON'S NEGOTIATORS HAVE RELENTED LAST WEEK US TRADE REPRESENTATIVE MICKEY KANTOR TOLD A SENATE PANEL THAT THE COMMISSIONS SHOULDN'T HAVE ANY ENFORCEMENT POWERS AND ONLY LIMITED INVESTIGATIVE AUTHORITY I THINK INVESTIGATE' IS THE WRONG WORD HE SAID INSTEAD A COMMISSION COULD REVIEW CERTAIN POLICIES HELPFUL IN THE ENVIRONMENTAL AREA THE TRADE AGREEMENT WHICH WOULD LIBERALIZE TRADE BETWEEN THE US AND MEXICO OVER 15 YEARS HAS ALWAYS OPERATED MORE ON A SYMBOLIC THAN AN ECONOMIC PLANE IF NAFTA WORKS OUT ECONOMICALLY US TRADE WITH MEXICO ALREADY EXPANDING SHOULD INCREASE STEADILY BUT THE NUMBERS AREN'T HUGE NAFTA SCHOLAR GARY HUFBAUER FIGURES THE US TRADE SURPLUS WITH MEXICO WOULD INCREASE IN 1995 TO BETWEEN 7 BILLION AND 9 BILLION FROM THE CURRENT 54 BILLION NAFTA BRINGS OUT THE FEAR IN MANY AMERICANS THAT THE US IS LOSING CONTROL OVER ITS ECONOMIC DESTINY NAFTA WOULD HITCH A BIG THIRD WORLD COUNTRY TO THE US AT A TIME WHEN MANY AMERICANS ARE AFRAID OF LOSING THEIR JOBS AND SEE FACTORIES HEADING SOUTH OF THE BORDER ALREADY AT THE SAME TIME COMPANIES THAT HAVE BEEN FORCED BY US ENVIRONMENTAL RULES TO SPEND MILLIONS ON CLEANUP WORRY ABOUT COMPETING WITH MEXICO WITH ITS HIT OR MISS ENVIRONMENTAL REGULATION MR KANTOR THREW A BONE TO NAFTA CRITICS BY SAYING THE US WOULD TRY TO PERSUADE MEXICO TO EXTEND LEGAL RIGHTS TO ITS CITIZENS TO SUE OVER ENVIRONMENTAL AND LABOR INFRACTIONS IN EFFECT THAT WOULD CREATE A USSTYLE TORT SYSTEM IN MEXICO BUT THAT NATION IS IN ESSENCE A ONEPARTY STATE WITHOUT AN INDEPENDENT JUDICIARY CORRUPTION AND SELECTIVE ENFORCEMENT OF PROPERTY RIGHTS AND CONTRACTS IN MEXICO MANDATED BRIBES FOR BUREAUCRATS AND JUDGES SETTLING CIVIL DISPUTES WRITES PETER MORICI A UNIVERSITY OF MAINE TRADE ECONOMIST INDEPENDENT ENVIRONMENTAL AND LABOR BOARDS COULD GO A LONG WAY TOWARD CALMING SOME NAFTA CRITICS IF THE BOARDS HAD REAL AUTHORITY SEN MAX BAUCUS D MONT PROPOSES AN ENVIRONMENTAL COMMISSION WITH A FULL RANGE OF SUBPOENA POWERS IT COULD INVESTIGATE CHARGES THAT SAY A MEXICAN ALUMINUM COMPANY EXPORTING TO THE US IS ABLE TO UNDERSELL US COMPETITORS BY DISREGARDING MEXICAN CLEANAIR STANDARDS IF MEXICO IGNORED THE COMMISSION'S FINDINGS ACCORDING TO THE BAUCUS PLAN THE US GOVERNMENT COULD IMPOSE PUNITIVE TARIFFS ON THE SMELTER'S EXPORTS TO THIS COUNTRY A NAFTA DISPUTERESOLUTION PANEL COULD LATER ASSESS WHETHER THE US PENALTY IS FAIR THE BAUCUS PLAN WOULDN'T SATISFY ALL NAFTA CRITICS BUT IT COULD PROMPT THE SIERRA CLUB AND OTHER ENVIRONMENTAL GROUPS TO DROP THEIR OPPOSITION AND ENCOURAGE RELUCTANT LAWMAKERS TO SUPPORT THE PACT HOUSE MAJORITY LEADER RICHARD GEPHARDT THE MOST INFLUENTIAL HOUSE MEMBER ON TRADE ISSUES CALLS MR BAUCUS'S APPROACH PROMISING HE ADDS THAT WE HAVE TO FIND A WAY TO SEE THAT THE LAWS CAN BE CREDIBLY ENFORCED ON THE BORDER OR THE VOTES WON'T BE THERE A NAFTA FAILURE IN CONGRESS WOULD CALL INTO QUESTION THE US ABILITY TO DELIVER ON CONTROVERSIAL TRADE AGREEMENTS AND UNDERMINE US EFFORTS TO SPUR ECONOMIC GROWTH THROUGH A NEW WORLDTRADE PACT IT WOULD CAUSE COUNTRIES THROUGHOUT LATIN AMERICA AND THE FORMER SOVIET BLOC TO REASSESS THE VALUE OF SWALLOWING BITTER ECONOMIC REFORMS AS MEXICO HAS IN THE HOPE OF GAINING GREATER ACCESS TO RICH MARKETS BUT UNLESS THE CLINTON ADMINISTRATION CAN CALM CRITICS ON CAPITOL HILL THAT MAY WELL BE THE RESULT 9303150074 930315 EGYPT STRUGGLES TO REASSURE TOURISTS TARGETS IN A WAVE OF TERRORIST ACTIVITY BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL CAIRO OUTSIDE FOUAD SULTAN'S OFFICE IN A GLEAMING NEW CONFERENCE CENTER HERE A WELCOME SIGN DECLARES EGYPT LOVES YOU MR SULTAN THE COUNTRY'S TOURISM MINISTER TRIES TO BE EQUALLY REASSURING EGYPT IS A VERY SAFE DESTINATION HE SAYS IN AN INTERVIEW A FEW DAYS AFTER A BOMB KILLED TWO TOURISTS IN A CAFE HERE THE BOMBING BROUGHT THE TERRORISTRELATED TOLL AMONG FOREIGN TOURISTS OVER THE PAST FIVE MONTHS TO THREE DEAD AND ABOUT A DOZEN WOUNDED IT WAS ANOTHER BLOW TO THE COUNTRY'S TOURISM INDUSTRY ALREADY SUFFERING FROM CANCELLATIONS BY THOUSANDS OF FRIGHTENED TRAVELERS BUT MR SULTAN URGES FOREIGNERS TO EXAMINE THE ODDS HE SAYS MORE THAN THREE MILLION TOURISTS VISITED EGYPT LAST YEAR ONLY A FEW RAN INTO TROUBLE IN ANY CASE MR SULTAN SAYS TERRORISM IS NOW BECOMING A COMMON FEATURE OF LIFE EVERYWHERE ON FEB 26 THE SAME DAY THAT AN EXPLOSION TORE UP THE WADI ELNIL CAFE IN CAIRO A FAR MORE DEVASTATING BLAST KILLED FIVE PEOPLE AT NEW YORK'S WORLD TRADE CENTER PRELIMINARY INVESTIGATIONS INDICATE THAT THE NEW YORK BOMBING MAY HAVE BEEN CARRIED OUT BY PEOPLE LINKED WITH THE ISLAMIC EXTREMISTS WHO CLAIM RESPONSIBILITY FOR THE RECENT ATTACKS ON TOURISTS IN EGYPT DO YOU FEEL LESS SAFE AND SECURE HERE THAN YOU DO IN LONDON OR PARIS MR SULTAN ASKS I PERSONALLY DO NOT MANY FOREIGNERS HERE AGREE CITING A LOW CRIME RATE AND THE EGYPTIAN GOVERNMENT'S BRUTAL CRACKDOWN ON ISLAMIC EXTREMISTS OVER THE PAST YEAR I THOUGHT THIS WOULD BE THE IDEAL TIME TO COME BEAMS GERARD PARIS A RETIRED BRITISH ACCOUNTANT THE DIMINUTIVE MR PARIS WHOSE SPINDLY WHITE LEGS GLEAM UNDER VERY SHORT BLUE SHORTS FIGURES THAT NOW IS THE TIME TO AVOID SWEATY MOBS OF TOURISTS HE ALSO DEEMS EGYPT MUCH SAFER THAN A SHOPPING TRIP TO HARRODS THAT'S JUST WHAT MR SULTAN WANTS TO HEAR THOSE WHO KNOW EGYPT VERY WELL THE MINISTER SAYS THEY LAUGH ABOUT THIS SITUATION AMONG THOSE NOT LAUGHING ARE PEOPLE WHOSE LIVELIHOOD DEPENDS ON TOURISM AMERICANS DON'T COME GRUMBLES A GUIDE AT A CAIRO MUSEUM SHAKING HIS GRIZZLED HEAD THEY ARE AFRAID THE GUIDE REPORTS THAT HIS BUSINESS IS DOWN 50 AND THAT HE MUST SOMEHOW FEED HIS THREE DAUGHTERS THEN HE RESUMES HIS DEMANDS FOR A BIGGER TIP FROM HIS AMERICAN CUSTOMER A DOZEN ATTACKS IN RECENT MONTHS MOSTLY INVOLVING SHOTS FIRED AT TOURIST BUSES HAVE UNNERVED MANY POTENTIAL CUSTOMERS MR SULTAN ESTIMATES THAT REVENUE FROM TOURISM IN RECENT MONTHS HAS BEEN DOWN ABOUT 20 FROM A YEAR EARLIER HE CALCULATES THAT SUCH A DECLINE WOULD COST EGYPT SOME 700 MILLION IF IT PERSISTED FOR A YEAR A WESTERN ECONOMIST BASED HERE BELIEVES THE DAMAGE IS WORSE HE ESTIMATES THAT TOURISM REVENUE IS RUNNING AT AN ANNUAL RATE OF 2 BILLION THAT WOULD BE DOWN FROM ABOUT 3 BILLION IN 1992 AND ONLY HALF THE EGYPTIAN GOVERNMENT'S AMBITIOUS GOAL FOR THE CURRENT YEAR SUCH LOSSES ARE GRIM NEWS FOR A POOR COUNTRY THAT FEEDS AND CLOTHES ITSELF LARGELY BY HERDING TOURISTS PAST THE GLORIES OF ITS DISTANT PAST EGYPTIAN OFFICIALS SAY TOURISM ACCOUNTS FOR ABOUT 10 OF THE COUNTRY'S TOTAL ANNUAL OUTPUT OF GOODS AND SERVICES AND ONETHIRD OF FOREIGNEXCHANGE RECEIPTS IT ALSO IS ONE OF THE BIGGEST EMPLOYERS IN A COUNTRY SUFFERING FROM UNEMPLOYMENT ESTIMATED AT 20 FEAR OF FEEDING ISLAMIC FERVOR THE DANGER SOME DIPLOMATS HERE WARN IS THAT A LOSS OF TOURISM JOBS WILL AGGRAVATE PUBLIC DISCONTENT WITH EGYPT'S AUSTERE ECONOMIC POLICY THAT IN TURN COULD CREATE MORE SYMPATHY FOR THE TINY GROUPS OF MUSLIM MILITANTS TRYING TO OVERTHROW PRESIDENT HOSNI MUBARAK BY ATTACKING TOURISTS THESE EXTREMISTS HAVE HIT ON A HIGHLY EFFECTIVE WAY TO HARASS MR MUBARAK WHO HAS RULED STERNLY SINCE HIS PREDECESSOR ANWAR SADAT WAS ASSASSINATED BY ISLAMIC RADICALS IN 1981 MR MUBARAK'S SECURITY SERVICES HAVE RESPONDED TO THE LATEST WAVE OF TERROR BY LOCKING UP MORE THAN 1700 PEOPLE SUSPECTED OF INVOLVEMENT WITH ISLAMIC EXTREMISM ACCORDING TO A RECENT US STATE DEPARTMENT REPORT THAT REPORT CRITICIZED THE EGYPTIAN GOVERNMENT FOR FAILING TO PREVENT THE TORTURE OF MANY PRISONERS AND FOR DETAINING PEOPLE WITHOUT FORMAL CHARGES SOLDIERS' BAYONETS GLINT IN THE SUN AT JUST ABOUT EVERY CORNER IN TOURIST AREAS OF CAIRO HELICOPTERS AND ARMORED VEHICLES PATROL SUGARCANE FIELDS NEAR KING TUTANKHAMEN'S TOMB AND OTHER POPULAR SITES IN SOUTHERN EGYPT AND LUXURY HOTELS ARE KEEPING A CLOSER WATCH ON THEIR DOORS AND LOBBIES YASSER MAHFOUZ A MANAGER AT A CLUB MED PERCHED ON AN ISLET IN THE NILE NEAR ASWAN HOPES THE WORST IS OVER AFTER A TERRIBLE LOSS OF BUSINESS AT HIS HOTEL LATE LAST YEAR WE CAN'T SAY THAT IT'S COMPLETELY OVER BECAUSE THERE ARE STILL PROBLEMS SAYS MR MAHFOUZ BUT THE GOVERNMENT IS HE SEARCHES FOR THE RIGHT WORD THEN SETTLES FOR MAKING A FIST AMONG ORDINARY EGYPTIANS SUPPORT SEEMS STRONG FOR TOUGH TACTICS AGAINST ISLAMIC TERROR AT THE SAME TIME HOWEVER EGYPTIAN MUSLIMS IN RECENT YEARS HAVE GROWN MUCH STRICTER IN RELIGIOUS OBSERVANCES AT LEAST OUTWARDLY MORE AND MORE WOMEN WEAR THE VEIL MANY MEN BEAR BRUISES ON THEIR FOREHEADS A SIGN OF PIETY CAUSED BY KNOCKING THE HEAD FERVENTLY AGAINST THE CARPET DURING PRAYERS PEOPLE ARE FED UP WITH THE MEAGER RESULTS OF PAST CAUSES SOCIALISM PANARAB FRATERNITY AND THE STRUGGLE AGAINST ISRAEL AND DISCOURAGED BY THE FAILURE OF MR MUBARAK'S FREEMARKET POLICIES TO CREATE MORE JOBS SO MANY OF THEM TURN TO ISLAM FOR THEIR ANSWERS THESE PEOPLE TEND TO FROWN ON SKIMPILY DRESSED ALCOHOLGUZZLING TOURISTS AS WOULD BE EXPECTED MR SULTAN AND OTHER MEMBERS OF THE MUBARAK TEAM SCOFF AT SUGGESTIONS THAT FIERY ISLAMIC CLERICS SUCH AS SHEIK OMAR ABDELRAHMAN AN EGYPTIAN WHO PREACHES HOLY WAR FROM HIS CURRENT BASE IN THE US COULD ONE DAY LEAD AN IRANSTYLE REVOLUTION HERE MR SULTAN WHO DISMISSES ONE RADICAL PREACHER AS THE DRUM PLAYER OF A BELLY DANCER NOTES THAT EGYPT'S MUSLIMS MOSTLY ADHERING TO THE SUNNI AND SUFI BRANCHES OF THE FAITH ARE LESS RADICAL THAN THE SHIITE MUSLIMS WHO PREDOMINATE IN IRAN EGYPTIANS ARE WELLKNOWN TO BE THE MOST MODERATE AND MILD MUSLIMS HE SAYS IN CASE PEOPLE IN THE WEST AREN'T GETTING THAT MESSAGE MR SULTAN INTENDS TO HIRE PUBLICRELATIONS FIRMS TO TRY TO PERSUADE AMERICANS AND EUROPEANS THAT EGYPT IS A SAFE FRIENDLY PLACE AMONG THE CONVERTED IS MARILYN PELHAM A RETIRED SCHOOL TEACHER FROM BALTIMORE WHO IS HERE FOR A NILE CRUISE WITH HER HUSBAND BILL A FORMER PHYSICS PROFESSOR AS THE BOAT GLIDES PAST PALM TREES AND SAND DUNES MRS PELHAM ADMITS THAT SIX YEARS AGO SHE CHICKENED OUT AND CANCELED A TRIP TO GREECE BECAUSE OF A TERRORISM SCARE THIS TIME HOWEVER THE PELHAMS CONCLUDED THAT THE RISK WAS WORTH TAKING EVEN THOUGH THEIR FAMILY WAS NERVOUS ABOUT THE IDEA WE'D BE MORE LIKELY TO BE CARJACKED IN BALTIMORE THAN TO BE BLOWN UP HERE MRS PELHAM SAYS CHEERILY NOW THAT THEY HAVE ARRIVED IN EGYPT THE PELHAMS ARE MUCH MORE WORRIED ABOUT AVOIDING STOMACH UPSETS THAN DODGING BULLETS THEY TAKE COMFORT FROM THE BOAT OPERATOR'S PLEDGE THAT ALL VEGETABLES AND EVEN THE DISHES ARE WASHED WITH BOTTLED WATER JUST TO BE EXTRA SAFE HOWEVER MRS PELHAM SAYS SHE AND HER HUSBAND ARE KEEPING THEIR MOUTHS TIGHTLY SHUT WHEN THEY TAKE SHOWERS 9303150073 930315 MARKETING & MEDIA NEW YORK POST SALE TO HIRSCHFELD WINS APPROVAL IN COURT BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL BANKRUPTCY JUDGE APPROVED A TRANSACTION THAT WOULD MAKE ABRAHAM J HIRSCHFELD A REAL ESTATE DEVELOPER ACTIVE IN POLITICS THE SOLE OWNER OF THE NEW YORK POST THE FRIDAY RULING GAVE MR HIRSCHFELD IMMEDIATE CONTROL OF THE TABLOID NEWSPAPER ONE OF THE COUNTRY'S OLDEST DAILY PUBLICATIONS WHOSE OWNERSHIP HAS BEEN UP IN THE AIR FOR MORE THAN TWO MONTHS AS MR HIRSCHFELD TOOK CONTROL FRIDAY THE PAPER'S TOP EDITOR PETE HAMILL WAS DISMISSED HIS SUCCESSOR GERARD BRAY RESIGNED YESTERDAY AMID AN UPROAR OVER REPORTS OF LAYOFFS THAT COULD THREATEN PUBLICATION ACCORDING TO THE ASSOCIATED PRESS MR HIRSCHFELD WHO HAD ANNOUNCED A NEWS CONFERENCE FOR YESTERDAY AFTERNOON TO DISCUSS A PARTNERSHIP WITH WILBERT TATUM PUBLISHER OF NEW YORK'S AMSTERDAM NEWS SAID THERE WOULD BE SOME TEMPORARY LAYOFFS THE AP REPORTED IN AN INTERVIEW WITH THE AP POST MANAGING EDITOR MARC KALECH SAID MR BRAY HAD TOLD HIM HE WOULD RATHER QUIT THAN CARRY OUT ORDERS TO DRAW UP A LIST OF EMPLOYEES TO BE FIRED MR KALECH SAID HE WASN'T INCLINED TO PUBLISH A MONDAY NEWSPAPER AMID THE TURMOIL IF THEY WANT TO CLOSE IT IT'S THEIR BUSINESS MR HIRSCHFELD TOLD THE AP MR HIRSCHFELD INITIALLY BECAME INVOLVED IN THE TRAVAILS OF THE TABLOID TO AID STEVEN HOFFENBERG WHO HAD AN AGREEMENT TO BUY THE POST BUT DIDN'T HAVE THE FUNDS TO KEEP THE MONEYLOSING PAPER OPERATING BUT MR HOFFENBERG CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TOWERS FINANCIAL CORP HAD TROUBLE CLOSING ON HIS DEAL TO BUY THE POST BECAUSE OF A COURT ORDER THAT GIVES THE SECURITIES AND EXCHANGE COMMISSION SUBSTANTIAL CONTROL OVER HOW HE SPENDS HIS OWN ASSETS AND THOSE OF TOWERS THE SEC HAS CHARGED TOWERS A DEBTCOLLECTION CONCERN AND MR HOFFENBERG WITH FRAUDULENTLY SELLING 400 MILLION IN SECURITIES TO INVESTORS WHEN MR HOFFENBERG MADE MR HIRSCHFELD HIS PARTNER HE DESCRIBED HIM AS BEING LIKE A FATHER AT A LATER COURT HEARING WHEN MR HOFFENBERG REALIZED THAT MR HIRSCHFELD WAS EYEING THE PAPER FOR HIS OWN THE TOWERS CHIEF COMPARED HIS PARTNER TO HITLER AND NOW MORE LIKE A GREEK SOLDIER EMERGING FROM A TROJAN HORSE MR HIRSCHFELD HAS MADE A DEAL THAT GIVES HIM SOLE CONTROL OF THE PAPER UNDER THE AGREEMENT APPROVED BY CREDITORS OF PETER KALIKOW THE CURRENT OWNER OF THE POST AND BY US BANKRUPTCY JUDGE FRANCIS CONRAD MR HIRSCHFELD WILL PERSONALLY GUARANTEE A 15 MILLION MORTGAGE ON THE PAPER'S BUILDING AND 41 MILLION IN POTENTIAL TAX LIABILITIES HE ALSO WILL INJECT MORE THAN 2 MILLION IN THE OPERATIONS OF THE PAPER DESPITE THE NEW OWNERSHIP THE POST'S FUTURE IS FAR FROM SECURE MANY OF ITS TOP WRITERS AND EDITORS HAVE BEEN HIRED AWAY BY THE NEW YORK DAILY NEWS AND ITS NEW OWNER MORTIMER ZUCKERMAN ALSO THE NEWSPAPER CONTINUES TO LOSE CIRCULATION IN THE LAST AUDITED PERIOD WEEKDAY CIRCULATION DROPPED 11 TO 437918 THAT DURING A YEAR FILLED WITH SCANDAL TAILOR MADE FOR THE POST'S RACY HEADLINES SUCH AS CHEATING BRITISH ROYALS AND THE GUNTOTING AMY FISHER STORY IN THE SAME PERIOD THE SIX MONTHS ENDED SEPT 30 1992 THE DAILY NEWS BURDENED BY BANKRUPTCYLAW PROCEEDINGS AND NO SIGNIFICANT EDITORIAL IMPROVEMENTS ACTUALLY INCREASED ITS CIRCULATION 23 ACCORDING TO THE AUDIT BUREAU OF CIRCULATIONS 9303150072 930315 REVISED RULES OF THE CORPORATE GAME GE REDESIGNS RUNGS OF CAREER LADDER BY AMANDA BENNETT MANY COMPANIES ARE REBUILDING THEIR CORPORATE LADDERS BUT FEW SO FAR HAVE CARRIED THE PROCESS AS FAR AS GENERAL ELECTRIC CO TO GET BETTERROUNDED LEADERS THE COMPANY IS ENCOURAGING FASTTRACK MANAGERS TO GET MORE VARIED JOB EXPERIENCE TO PROMOTE GLOBALIZATION IT IS MAKING FOREIGN SERVICE MORE APPEALING THE COMPANY ALSO IS PROMOTING SKILLS SUCH AS TEAM BUILDING AND EXPERIENCE WITH ISSUES LIKE THE ENVIRONMENT THAT WERE ONCE PERIPHERAL TO MAKE A THOROUGH CHANGE IN APPROACH GE HAS REDESIGNED NOT JUST ITS MANAGEMENTTRAINING SYSTEM BUT ALSO ITS WAY OF RANKING PROMOTING AND EVEN PAYING PEOPLE THE COMPANY IS ALSO SEEKING ADVICE FROM MORE MANAGERS ABOUT ITS FUTURE EXECUTIVE NEEDS CAREER PLANNING IS A MARKEDLY DIFFERENT DISCUSSION TODAY THAN IT HAS BEEN AND IN TWO YEARS WE WILL HAVE A DIFFERENT DISCUSSION AS WELL SAYS DENNIS DONOVAN VICE PRESIDENT OF HUMAN RESOURCES FOR GE'S INDUSTRIAL AND POWER SYSTEMS BUSINESS MANY COMPANIES LIKE GE ARE FINDING THAT CHANGES IN THEIR MARKETS AND THE GROWING IMPORTANCE OF INTERNATIONAL BUSINESS ARE MAKING THEIR TRADITIONAL MANAGEMENT TRAINING OBSOLETE A LOOK AT HOW ONE GE DIVISION IS ALTERING ITS MANAGEMENTDEVELOPMENT PROGRAMS GIVES A TASTE OF WHAT MAY LIE AHEAD AT OTHER COMPANIES THE POWER SYSTEMS BUSINESS OF GE SCHENECTADY NY WASN'T PREVIOUSLY KNOWN AS A MANAGEMENTDEVELOPMENT PACESETTER WHILE OTHER GE UNITS WERE MORE INNOVATIVE IN THE AREA OF CAREER DEVELOPMENT THE POWER SYSTEMS BUSINESS HAD A REPUTATION FOR BEING STODGY AND BUREAUCRATIC SAYS MARK LITTLE A PRODUCT GENERAL MANAGER BUT NOW CAREER DEVELOPMENT IN THE UNIT IS MATCHED EXACTLY TO THE REALITIES OF THE WORLD HE SAYS ONE EXAMPLE IS HIS OWN CAREER MR LITTLE A MECHANICAL ENGINEER SPENT HIS EARLY YEARS IN THE UNIT PURELY IN TECHNICAL WORK BUT THREE YEARS AGO HE WAS SENT TO MANAGE A PART OF THE POWER SYSTEMS BUSINESS I WENT FROM A GUY FOCUSED ON THE NITS AND NATS OF TECHNOLOGY TO A GUY FOCUSED ON THE BOTTOM LINE OVERNIGHT HE SAYS IT WAS A HUGE STEP FOR ME THEN CAME AN EQUALLY BIG SHIFT INTO DEVELOPING BUSINESS INTERNATIONALLY SUDDENLY HE WAS TRAVELING TO ASIA LATIN AMERICA AND EASTERN EUROPE BEFORE THAT HE SAYS I HADN'T EVEN BEEN TO EUROPE IN THE PAST HE SAYS YOU DIDN'T SEE THIS KIND OF RAPID MOVE ON A CRAZY ZIGZAG CAREER PATH INDEED IN THE PAST A STINT WITH GE'S CORPORATE AUDIT STAFF WAS ARRANGED FOR PEOPLE WITH FINANCE BACKGROUNDS WHO WERE GOING TO BECOME FINANCE MANAGERS SAYS THE UNIT'S MR DONOVAN BUT ABOUT THREE YEARS AGO THE BUSINESS BEGAN PLACING HIGHPOTENTIAL PEOPLE FROM ALL BACKGROUNDS ON THE AUDIT STAFF AFTER A RIGOROUS COURSE IN AUDITING PRACTICES THE OFFICIAL ADDS THEN THESE RISING STARS GO ON TO WORK ON INTERNAL CONSULTING PROJECTS THE GOAL IS TO CREATE A WELLROUNDED BUSINESS LEADER HE SAYS TO ACCOMPLISH THAT GOAL HAS MEANT REDRAWING GE'S INTERNAL MANAGEMENT CAREER MAP WHICH FOR YEARS HAS INCLUDED 28 NUMBERED STEPS FROM ENTRYLEVEL MANAGEMENT UP TO THE CHAIRMAN'S JOB TYPICALLY PEOPLE EXPECTED EACH NEW JOB TO MOVE THEM A STEP UP THAT LADDER SAYS ANNE N ABAYA MANAGER OF PROFESSIONAL HUMAN RESOURCES AT THE POWER SYSTEMS UNIT BECAUSE OF THOSE EXPECTATIONS SHE SAYS THE COMPANY FOUND PEOPLE RESISTING ITS EFFORTS TO BROADEN THEIR BACKGROUNDS BY MOVING THEM TO NEW BUT NOT NECESSARILY HIGHERRANKED JOBS CONSEQUENTLY THE GE UNIT TWO YEARS AGO ABOLISHED THE 28 STEPS IT REPLACED THEM WITH SIX BROAD BANDS TO REDUCE EXPECTATIONS THAT EACH CAREER MOVE WOULD INVOLVE A STEP UP AT THE SAME TIME THE POWER SYSTEMS BUSINESS REALIZED IT NEEDED TO GIVE POTENTIAL LEADERS MORE INTERNATIONAL EXPERIENCE ESPECIALLY SINCE A RECENT EXPLOSION IN ITS FOREIGN SALES NOW MEANS THAT NEARLY TWOTHIRDS OF ITS BUSINESS NOW COMES FROM ABROAD A COMPANY SURVEY REVEALED THAT A FOREIGN STINT WAS STILL REGARDED AS A ROADBLOCK TO THE TOP SO THE COMPANY IN THE PAST YEAR BEGAN SENDING ITS BRIGHTEST STARS ABROAD RATHER THAN THE RUNOFTHEMILL MANAGERS IT ONCE PICKED FOR FOREIGN POSTS MS ABAYA SAYS THIS WILL REASSURE THOSE WHO FEAR INTERNATIONAL ASSIGNMENTS THE MANAGERS SELECTED SAY THE MOVE HELPS THEM TOO IT'S ALMOST IMPOSSIBLE TO QUANTIFY WHAT I HAVE LEARNED SAYS 36YEAROLD JAMES SUCIU NOW ON A ONEYEAR STINT AS MANAGER OF BUSINESSPLAN DEVELOPMENT IN SINGAPORE THERE ARE A LOT OF DIFFERENCES BETWEEN A MARKET WITH EXPLODING GROWTH AND A MATURE MARKET WITH KNOWLEDGEABLE PEOPLE HE ADDS GE IS ALSO TRYING TO ENSURE THAT ITS MANAGERS HAVE EXPERIENCE IN THE LEADING ISSUES OF THE DAY THUS RICHARD LUBERT A 34YEAROLD MANAGER CONSIDERED A FASTTRACK CANDIDATE WAS LAST YEAR NAMED AN ENVIRONMENTAL HEALTH AND SAFETY MANAGER WITH RESPONSIBILITIES FOR MONITORING POLLUTION PREVENTION AMONG OTHER THINGS EVEN AS RECENTLY AS A FEW YEARS BACK THAT AREA WAS NO PLACE FOR A STAR IT WASN'T GLAMOROUS HE SAYS BUT HE ADDS WE'RE TAKING A VERY SERIOUS VIEW OF THE ENVIRONMENT AND MAKING IT AN IMPORTANT PART OF MANAGERS' CAREER DEVELOPMENT 9303150071 930315 POLITICS & POLICY ASPIN'S DRIVE TO CLOSE MILITARY FACILITIES OF ALL SIZES STIRS A FUROR IN CONGRESS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEFENSE SECRETARY LES ASPIN'S RECOMMENDATION THAT 31 MAJOR MILITARY BASES AND SCORES OF SMALLER FACILITIES BE CLOSED WILL HIT HARDEST IN SOUTH CAROLINA PENNSYLVANIA CALIFORNIA AND VIRGINIA MR ASPIN'S LIST WAS SENT FRIDAY TO THE INDEPENDENT BASE CLOSURE AND REALIGNMENT COMMISSION WHICH WILL PUT TOGETHER A FINAL SET OF RECOMMENDATIONS BY LAW CONGRESS MUST VOTE THIS SUMMER ON THE LIST AS A BLOC IN 1991 THE PREVIOUS ROUND OF BASE CLOSINGS THE COMMISSION MADE SEVERAL SMALL CHANGES TO THENDEFENSE SECRETARY DICK CHENEY'S LIST THIS YEAR THE COMMISSION IS EXPECTED TO REMOVE FROM THE LIST FORT MCCLELLAN ALA WHERE THE ARMY CONDUCTS TRAINING TO DEAL WITH CHEMICAL WARFARE IT MAY ADD TO THE LIST MCCLELLAN AIR FORCE BASE LOCATED NEAR SACRAMENTO CALIF IN A KIND OF POLITICAL FAN DANCE WITH THE CALIFORNIA CONGRESSIONAL DELEGATION MR ASPIN REMOVED THAT BASE FROM THE LIST AT THE LAST MOMENT KNOWING THAT THE AIR FORCE WILL TELL THE COMMISSION THE BASE SHOULD BE CLOSED THE NAVY REVERSING ITS 1980S STRATEGY OF CULTIVATING POLITICAL SUPPORT BY DISPERSING ITS FACILITIES ACCOUNTED FOR THE BULK OF THIS YEAR'S SUGGESTED CLOSINGS AMONG ITS 23 PROPOSED CLOSURES ARE ITS AVIATION DEPOT IN PENSACOLA FLA ITS TRAINING CENTERS IN ORLANDO FLA AND SAN DIEGO CALIF AND GROUPS OF FACILITIES IN THE OAKLAND CALIF AND CHARLESTON SC AREAS IT IS A DISASTER AN ECONOMIC DISASTER SAID SEN ERNEST HOLLINGS A SOUTH CAROLINA DEMOCRAT SOUTH CAROLINA IS GOING TO BE HURTING VERY BADLY SAID KEITH CUNNINGHAM AN ANALYST AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY AN INDEPENDENT RESEARCH GROUP MR CUNNINGHAM WHO HAS STUDIED THE EMPLOYMENT IMPACT OF PAST BASE CLOSINGS NOTED THAT THE DEFENSE DEPARTMENT'S OWN FIGURES STATE THAT THE CHARLESTON AREA COULD LOSE 9287 CIVILIAN JOBS HE SAID HIS RESEARCH INDICATES THAT SIGNIFICANTLY UNDERSTATES THE POTENTIAL JOB LOSS ACCORDING TO THE PENTAGON CALIFORNIA COULD LOSE 15187 CIVILIAN JOBS VIRGINIA COULD LOSE 14787 AND PENNSYLVANIA 4894 IN ADDITION SOUTHEASTERN CONNECTICUT ALREADY ECONOMICALLY DEPRESSED BY DEFENSE CUTBACKS COULD SUFFER ANOTHER HIT FROM THE NAVY'S RECOMMENDATION THAT THE NAVAL SUBMARINE BASE IN NEW LONDON BE KEPT OPEN BUT THAT SUBMARINES NO LONGER BE BERTHED THERE THAT WOULD RESULT IN THE LOSS OF 1114 CIVILIAN JOBS OR ABOUT 7 OF THE AREA'S JOB BASE THE PENTAGON SAID NOTING OTHER RECENT NAVY CUTBACKS IN THE NEW LONDON AREA ONE DEFENSE INDUSTRY ANALYST SUGGESTED THAT THE NAVY IS INCREMENTALLY UNDERCUTTING ELECTRIC BOAT THE GENERAL DYNAMICS CORP UNIT THAT BUILDS SUBMARINES THERE A GENERAL DYNAMICS SPOKESMAN DISPUTED THAT VIEW SAYING THAT NAVY OFFICIALS HAVE MADE IT QUITE CLEAR THAT THE CONSIDER ELECTRIC BOAT THE FOREMOST SUBMARINE PRODUCER AFTER THE INITIAL COSTS OF CLOSING ARE ABSORBED THE 1993 ROUND OF BASE CLOSURES WILL SAVE ABOUT 31 BILLION A YEAR STARTING IN THE YEAR 2000 THE PENTAGON SAID IN ADDITION TO THE DOMESTIC CLOSING SUGGESTIONS THE PENTAGON RELEASED A LIST OF CLOSINGS OR REDUCTIONS AT 29 SMALL OVERSEAS INSTALLATIONS SUCH AS AN AMMUNITION DEPOT IN GERMANY AND A RADIO RELAY STATION IN THE NETHERLANDS UNLIKE DOMESTIC CLOSINGS FOREIGN TERMINATIONS AREN'T SUBJECT TO REVIEW BY THE BASE CLOSING COMMISSION MR ASPIN'S RECOMMENDATIONS STIRRED AN UPROAR ON CAPITOL HILL FRIDAY WITH FAXES FLYING FROM DOZENS OF MEMBERS OF CONGRESS BUT ONE STATEMENT STOOD OUT THE GOVERNOR OF GUAM JOSEPH ADA SAID HE WAS SHOCKED AND DISAPPOINTED THAT THE NAVAL AIR STATION ON GUAM WASN'T SCHEDULED FOR CLOSURE FOR YEARS WE'VE BEEN ASKING FOR THIS BASE TO BE CLOSED GOV ADA SAID FOR US THE OCCUPATION OF SO MUCH OF OUR REAL ESTATE BY THE MILITARY HAS BEEN MORE OF AN ECONOMIC HINDERANCE THAN AN ECONOMIC BOOST HERE IS THE LIST OF THE PENTAGON'S SUGGESTED MAJOR CLOSURES 9303150070 930315 BUSINESS BRIEF SANSUI ELECTRIC CO JAPANESE FIRM'S PRETAX LOSS SHRANK TO 42 MILLION IN '92 SANSUI ELECTRIC CO A SPECIALIZED AUDIO CONCERN SAID THAT IT HAD A CONSOLIDATED OR GROUP PRETAX LOSS OF 494 BILLION YEN 42 MILLION IN 1992 BUT THE LOSS NARROWED FROM THE 1770BILLIONYEN PRETAX LOSS IN THE PREVIOUS YEAR FOR THE CURRENT ACCOUNTING YEAR ENDING DEC 31 SANSUI FORECASTS ITS CONSOLIDATED PRETAX LOSS WILL NARROW TO 110 BILLION YEN THE COMPANY SEES GROUP SALES RISING 15 TO 18 BILLION YEN DURING THE LATEST REPORTING PERIOD THE COMPANY REDUCED UNPROFITABLE BUSINESS SECTORS AND PRODUCTS AND PUT A FOCUS ON EXPANDING MARKET SHARE FOR HIGHPRICED PRODUCTS IN THE DOMESTIC MARKET THE COMPANY ALSO PUT AN EMPHASIS ON SALES ACTIVITIES IN ASIAN NATIONS BUT GROUP SALES WERE REDUCED AS A RESULT OF SHEDDING CAPETRONIC GROUP SANSUI SAID 9303150069 930315 FOREIGN EXCHANGE CURRENCY TRAPS IN EMERGING MARKETS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTEREST IN STOCK AND BOND MARKETS IN EMERGING COUNTRIES IS BOOMING BUT FOREIGN INVESTORS EAGER TO CASH IN ON THE TANTALIZING GAINS FACE A BIG PROBLEM THE CURRENCIES IN MANY OF THESE EMERGING MARKETS GIVE NEW MEANING TO THE WORD VOLATILE THE CURRENCY FACTOR CAN BE MASSIVELY IMPORTANT WHEN INVESTING IN DEVELOPING COUNTRIES SAYS MICHAEL BALFOUR AN OVERSEAS INVESTMENT DIRECTOR AT EDINBURGH FUND MANAGERS PLC IN SCOTLAND IN A PLACE LIKE BRAZIL WHERE THE CURRENCY IS DEPRECIATING BY 1 A DAY AGAINST THE US DOLLAR YOU HAVE TO BE SURE THE UNDERLYING ASSET GOES UP BY AT LEAST THAT AMOUNT JUST TO STAY AHEAD OF THE GAME LAST YEAR EMERGING MARKETS ACCOUNTED FOR 13 OF THE WORLD'S 15 BEST PERFORMING STOCK MARKETS MEASURED IN DOLLARS INCLUDING THE TOP SIX ACCORDING TO THE INTERNATIONAL FINANCE CORP A UNIT OF THE WORLD BANK ON THE FIXEDINCOME SIDE MONEY MANAGERS IN THE US AND EUROPE ARE BEING DRAWN TO HIGH INTEREST RATES SAYS JOHN PURCELL DIRECTOR OF EMERGING MARKETS RESEARCH AT SALOMON BROTHERS INC THESE INCLUDE THE 1738 ANNUAL YIELD AVAILABLE ON 28DAY MEXICAN CETES THE 2370 RATE ON SOME ARGENTINE SECURITIES 1575 ANNUAL YIELD ON THREEMONTH INDONESIAN CERTIFICATES OF DEPOSIT AND 1240 ANNUAL RATE THAT THREEMONTH PHILIPPINE TREASURY BILLS FETCH BUT FOR FOREIGN INVESTORS UNEXPECTED CURRENCY SWINGS CAN TORPEDO THE VALUE OF EVEN THE MOST BRILLIANT EMERGINGMARKET INVESTMENT LAST YEAR FOR INSTANCE BRAZIL'S STOCK MARKET WAS THE WORLD'S BEST PERFORMER SOARING 1117 ACCORDING TO MORGAN STANLEY CAPITAL INTERNATIONAL BUT THAT WAS WORTH ONLY A 5 RISE IN DOLLARS AND YEN 12 IN MARKS AND 29 IN BRITISH POUNDS HEDGING AGAINST SUCH VOLATILITY CAN BE VIRTUALLY IMPOSSIBLE OR AT LEAST PROHIBITIVELY EXPENSIVE BECAUSE THERE IS ONLY LIMITED FOREIGN EXCHANGE MARKET ACTIVITY IN THE CURRENCIES OF THE COUNTRIES INVOLVED THERE'S NOT VERY MUCH GOING ON IN EASTERN EUROPE BECAUSE OF THE ECONOMIC AND POLITICAL SITUATION SAYS TIMOTHY TEO MANAGING DIRECTOR IN CHARGE OF NORTH AMERICAN FOREIGN EXCHANGE TRADING FOR JP MORGAN & CO AND IN LATIN AMERICA AND SOUTHEAST ASIA CURRENCY TRADING IS MOSTLY TIED TO EQUITY AND BOND INVESTMENT AND TRADE IT'S NOT LIKE THE DOLLARMARK OR DOLLARYEN WHERE YOU HAVE MANY PROFESSIONAL TRADERS DOING EVERYTHING BECAUSE MARKETS IN SUCH EXOTICA AS THE THAI BAHT MALAYSIAN RINGGIT AND INDONESIAN RUPIAH ARE LITTLE KNOWN UNDERRESEARCHED AND LARGELY ILLIQUID THEY AREN'T REGARDED AS AN ASSET CLASS IF YOU ARE AN INSTITUTIONAL INVESTOR YOU WANT TO BE ABLE TO GO IN AND BUY IN SIZE AND NOT MOVE THE MARKET SAYS MR PURCELL HE ADDS THAT EMERGINGMARKET CURRENCIES HAVE BEEN A RISK FACTOR THAT INVESTORS HAVE BEEN FORCED TO BEAR SEEN MORE AS A DANGER THAN AN OPPORTUNITY FOR US INVESTORS THERE IS SOME COMFORT IN THE FACT THAT THE CURRENCIES OF CERTAIN EMERGING COUNTRIES ARE AT LEAST LOOSELY TIED TO THE US DOLLAR BECAUSE THE US IS OFTEN THEIR LARGEST TRADING PARTNER AND BECAUSE MANY OF THEIR IMPORTS AND EXPORTS ARE DOLLARDENOMINATED MALAYSIA INDONESIA THAILAND AND OTHER ASIAN COUNTRIES DIRECTLY OR INDIRECTLY LINK THEIR CURRENCIES TO THE DOLLAR SAYS MR BALFOUR OF EDINBURGH FUND MANAGERS SEVERAL LATIN COUNTRIES SUCH AS MEXICO CHILE AND ARGENTINA HAVE ALSO EFFECTIVELY PEGGED TO THE DOLLAR TO HELP LOWER LOCAL INFLATION AND ATTRACT FOREIGN CAPITAL BUT SUCH TIES DO LITTLE FOR EUROPEAN AND JAPANESE INVESTORS WHO MUST STILL CONTEND WITH FLUCTUATIONS OF THEIR OWN CURRENCIES AGAINST THE DOLLAR AND EVEN WITH THE DOLLAR PEGS AMERICANS AREN'T IMMUNE FROM THE SOMETIMES DEVASTATING EFFECTS OF SUDDEN MAXIDEVALUATIONS MR BALFOUR POINTS OUT THAT AMONG OTHERS INDONESIA DEVALUED ITS CURRENCY BY 28 AGAINST THE DOLLAR IN 1983 AND BY ANOTHER 45 IN 1986 AND MEXICO DEVALUED BY 65 IN 1982 AND ANOTHER 22 IN 1990 ONE OF THE MOST IMPORTANT THINGS ABOUT INVESTING IN EMERGING MARKETS ESPECIALLY LATIN AMERICA IS THAT THERE BE A STATED CLEAR FOREIGN EXCHANGE POLICY THAT THE GOVERNMENT IS FOLLOWING SAYS PATTI A SATTERTHWAITE A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON FOR INSTANCE BECAUSE BRAZIL ANNOUNCED ITS INTENT TO DEVALUE ITS CRUZEIRO BY 11 A DAY SHE SAYS I DON'T HAVE TO SERIOUSLY WORRY ABOUT A MAXIDEVALUATION SIMILARLY SHE FEELS COMFORTABLE WITH MEXICO AND ARGENTINA BOTH OF WHICH HAVE POLICIES LINKING THEIR CURRENCIES TO THE DOLLAR BY CONTRAST SHE STEERED CLEAR OF VENEZUELAN STOCKS LAST YEAR BECAUSE THE COUNTRY CLEARLY HAD AN OVERVALUED CURRENCY AND NO CLEAR POLICY TO TAKE CARE OF IT STILL MS SATTERTHWAITE STRESSES THAT AN INVESTOR MUST CONSTANTLY MONITOR A COUNTRY'S FOREIGN CURRENCY RESERVES ITS CURRENTACCOUNT BALANCE SENTIMENT REGARDING WHETHER THE CURRENCY IS OVERVALUED OR UNDERVALUED AND FLIGHT CAPITAL BASICALLY THE FLOW OF MONEY FOLLOWING THE TURMOIL THAT HIT EUROPE'S SEMIFIXED EXCHANGE RATE SYSTEM LAST FALL INVESTORS ARE BECOMING MORE CONCERNED ABOUT THE RISKS ASSOCIATED WITH RIGID CURRENCY POLICIES SAYS FRANCOIS GOUR A MONEY MANAGER AT FIDUCIARY TRUST CO INTERNATIONAL THESE THINGS CAN COLLAPSE WITH ENOUGH PRESSURE FROM SPECULATORS BECAUSE MEXICAN INFLATION IS GROWING FASTER THAN US INFLATION SOME ANALYSTS BELIEVE MEXICO WILL BE FORCED TO DEVALUE THE PESO MORE THAN THE 465 MAXIMUM ALLOWED UNDER CURRENT GOVERNMENT POLICY AND BY SOME MEASURES THE ARGENTINE PESO IS 520 OVERVALUED CONCEDING THAT HEDGING AGAINST A DEVALUATION IN EMERGING MARKETS IS EITHER IMPOSSIBLE OR TOO COSTLY MS SATTERTHWAITE WHO THINKS ARGENTINA CAN HOLD OUT FOR AT LEAST SIX MONTHS SAYS AN INVESTOR CAN GAIN SOME PROTECTION BY BUYING STOCKS THAT WOULD BENEFIT FROM A DEVALUATION THREE ARGENTINE EXAMPLES SHE SAYS ARE INDUSTRIA ARGENTINA DE ACEROS SA AND SIDERCA SOCIEDAD ANOMINA INDUSTRIAL Y COMERCIAL TWO STEEL PRODUCERS AND ALPARGATAS SAIC A SHOE EXPORTER NOTING THAT MANY AMERICANS ARE INVESTING IN HONG KONG COMPANIES THAT HAVE ASSETS IN CHINA JOHN HICKLING ANOTHER FIDELITY PORTFOLIO MANAGER WORRIES ABOUT THE WEAKNESS OF CHINA'S CURRENCY IF THE RENMINBI DEVALUES SIGNIFICANTLY AGAINST THE HONG KONG DOLLAR WHICH IS TIED TO THE US DOLLAR THERE GOES YOUR NET ASSET VALUE HE WARNS AS INFLATION COMES UNDER CONTROL IT IS CONCEIVABLE THAT MEXICO WILL BE ABLE TO OFFER PESODENOMINATED DEBT IN TWO TO 10 YEAR MATURITIES SAYS STEPHEN DIZARD MANAGING DIRECTOR IN CHARGE OF EMERGINGMARKET FIXED INCOME TRADING AT SALOMON BROTHERS ALSO YOU MIGHT SEE THE DEVELOPMENT OF A EUROPESO MARKET CURRENTLY MOST LOCALCURRENCY DEBT SOLD INTERNATIONALLY MATURES IN A YEAR OR LESS BUT DESPITE THE GROWING APPEAL OF EMERGING STOCK AND BOND MARKETS MANY MONEY MANAGERS AND ANALYSTS SAY IT COULD BE DECADES BEFORE ANY OF THE EMERGINGMARKET CURRENCIES ACHIEVE THE STATURE OF MAJOR WORLD CURRENCIES IN 20 YEARS TIME IT'S CONCEIVABLE THAT THE CURRENCIES OF BRAZIL CHINA AND INDIA THE THREE BIGGEST EMERGING ECONOMIES COULD REACH THE STATUS OF SOME OF THE LESSER TRADED MAJOR CURRENCIES SUCH AS THE FRENCH FRANC CANADIAN DOLLAR AUSTRALIAN DOLLAR AND ITALIAN LIRA SAYS PAUL BURIK DIRECTOR OF RESEARCH AT ENNIS KNUPP & ASSOCIATES AN INVESTMENT CONSULTING FIRM IN CHICAGO BUT A LOT WOULD HAVE TO HAPPEN FOR THAT TO TAKE PLACE EACH COUNTRY HE SAYS WOULD HAVE TO MAINTAIN STEADY PERCAPITA ECONOMIC GROWTH AN OPEN ECONOMY AND A RESPONSIBLE MONETARY POLICY THAT'S A TALL ORDER FOR MANY DEVELOPING COUNTRIES NOTED FOR THEIR BURGEONING POPULATIONS HISTORIC TENDENCIES TO PROTECT DOMESTIC INDUSTRIES FROM FOREIGN COMPETITORS AND RUNAWAY INFLATION NOTING THAT SOME COUNTRIES DON'T WANT THEIR CURRENCIES INTERNATIONALIZED MR TEO OF JP MORGAN SAYS YOU NEED AN ECONOMY THAT'S BIG YOU NEED STABLE GROWTH RATES AND YOU NEED MORE OF AN INTERNATIONAL FOCUS NOT JUST AN ECONOMY THAT IS REGIONAL TO ATTRACT TRANSACTIONS POINTING TO THE SIGNIFICANT IMPROVEMENT IN SOME LATIN AMERICAN ECONOMIES THEIR CLOSE TIES TO THE US AND THEIR LARGE CAPITAL NEEDS HE FEELS SOME LATIN COUNTRIES WILL LEAD THE WAY VERY SKEPTICAL MR BALFOUR OF EDINBURGH FUND MANAGERS SAYS THERE'S NO EMERGINGMARKET COUNTRY THAT HAS A SIGNIFICANT PROPORTION OF WORLD TRADE OR A POWERFUL AND CREDIBLE CENTRAL BANK WHERE THE CURRENCY IS LIKELY TO BE TREATED AS A RESERVE CURRENCY HIS MOST LIKELY CANDIDATE IS CHINA WHICH HE PREDICTS IN 10 YEARS WILL HAVE A BIGGER ECONOMY THAN JAPAN AND A LARGER SHARE OF WORLD TRADE IN FOREIGN EXCHANGE MARKET TRADING FRIDAY THE DOLLAR CHANGED HANDS IN NEW YORK AT 16650 MARKS AND 11803 YEN COMPARED WITH 16615 MARKS AND 11761 YEN THURSDAY AT MIDDAY MONDAY IN TOKYO THE DOLLAR TRADED AT 16695 MARKS AND 11844 YEN 9303150068 930315 BUSINESS BRIEF ZALE CORP JUNIOR BONDHOLDERS AGREE TO BACK CHAPTER 11 PLAN ZALE CORP DALLAS SAID JUNIOR BONDHOLDERS REPRESENTED BY BARRE & CO A DALLAS SECURITIES FIRM HAVE AGREED TO SUPPORT THE JEWELRY RETAILER'S PLAN OF REORGANIZATION FILED LAST MONTH IN RETURN ZALE AMENDED THE PLAN TO PROVIDE TO THE JUNIOR BONDHOLDERS 917526 MORE WARRANTS TO PURCHASE ZALE COMMON STOCK FOR A TOTAL OF TWO MILLION FIVEYEAR WARRANTS THE EXERCISE PRICE OF THE WARRANTS WILL BE 120 OF THE EQUITY VALUE A SHARE BASED ON A VALUATION BY BEAR STEARNS & CO OF THE REORGANIZED ZALE ON THE CONFIRMATION DATE UP TO A PRICE OF 10625 A SHARE ANDREAS LUDWIG ZALE'S CHIEF FINANCIAL OFFICER SAID THE AGREEMENT SHOULD NOT MATERIALLY AFFECT THE OVERALL RECOVERY OF OTHER CREDITOR GROUPS ALL OF WHICH ALREADY HAVE AGREED TO THE REORGANIZATION PLAN ZALE OWNED BY PEOPLES JEWELLERS LTD TORONTO AND SWAROVSKI INTERNATIONAL HOLDING AG SWITZERLAND HAS OPERATED UNDER CHAPTER 11 BANKRUPCTYCOURT PROTECTION FROM CREDITORS SINCE JANUARY 1992 9303150067 930315 AUSTRALIA'S LABOR WINS REELECTION DEFYING POLLSTERS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIAN PRIME MINISTER PAUL KEATING CONFOUNDED POLITICAL PUNDITS AND POLLSTERS BY GETTING HIS LABOR PARTY GOVERNMENT REELECTED TO A THREEYEAR TERM OVER WHAT HAD APPEARED TO BE A RELATIVELY POPULAR CONSERVATIVE ALTERNATIVE THE RESULT LABOR'S FIFTH CONSECUTIVE ELECTORAL VICTORY WAS ALL THE MORE SURPRISING COMING AGAINST A BACKDROP OF HIGH UNEMPLOYMENT A WEAK ECONOMY AND AN IMAGE THAT AFTER A DECADE IN OFFICE THE PARTY IS TIRED LED BY JOHN HEWSON A FORMER ECONOMICS PROFESSOR THE CONSERVATIVE OPPONENTS RAN ON A TICKET THAT PROMISED TO OVERHAUL THE TAX SYSTEM BY REPLACING A RAFT OF BUSINESS LEVIES WITH A 15 TAX ON GOODS AND SERVICES IT WAS MR HEWSON'S PROPOSED GOODSANDSERVICES TAX THAT DID IN THE CONSERVATIVE COALITION SAID RICHARD FARMER A FORMER LABOR STATEGIST TURNED POLITICAL COMMENTATOR WHO SAID HE IS STUNNED THAT LABOR WON AUSTRALIA'S GOVERNMENT IS DETERMINED BY WHICH POLITICAL PARTY HOLDS SWAY OVER MORE THAN HALF OF THE 147 SEATS IN THE HOUSE OF REPRESENTATIVES BALLOTS STILL ARE BEING COUNTED UNDER THE COUNTRY'S COMPLICATED PREFERENTIAL VOTING SYSTEM BUT LABOR PARTY STATEGISTS BELIEVE THAT LABOR PROBABLY HAS WON ENOUGH TO GIVE IT AT LEAST NINE SEATS MORE THAN THE MAIN OPPOSITION CONSERVATIVES A COALITION OF THE LIBERAL AND NATIONAL PARTIES AND COULD WIN AS MUCH AS A 15SEAT MARGIN BEFORE SATURDAY'S ELECTION LABOR HELD AN EIGHTSEAT MARGIN OVER THE COALITION THE 49YEAROLD MR KEATING WHO SERVED AS THE NATION'S TREASURER FOR MOST OF THE PAST DECADE CALLED IT THE SWEETEST VICTORY OF ALL IN A POSTELECTION TV INTERVIEW ANDREW ROBB THE LIBERAL PARTY'S CAMPAIGN DIRECTOR LAID THE BLAME ON AN ELECTORATE TRAUMATIZED OVER THE LAST FEW YEARS BY THE RECESSION BOTH FROM A FINANCIAL AND A PERSONAL POINT OF VIEW AGAINST THAT BACKGROUND MR ROBB SAID PEOPLE WERE FRIGHTENED INTO STICKING WITH THE DEVIL THEY KNEW RATHER THAN THE DEVIL THEY DIDN'T INDEED ONE POLITICAL OBSERVER MAINTAINED THAT AUSTRALIANS SIMPLY LOST THEIR NERVE ONCE THEY REACHED THE POLLING BOOTH WHICH COULD HELP EXPLAIN WHY LABOR WON DEPITE SEVERAL PREELECTION OPINION POLLS POINTING TO A CONSERVATIVE VICTORY BOB HOGG ONE OF LABOR'S MAIN STRATEGISTS ATTRIBUTED THE GOVERNMENT'S VICTORY TO AUSTRALIANS' WORRIES THAT THE REVERED NATIONAL HEALTH CARE PROGRAM THE COUNTRY'S SOCIAL SECURITY SAFETY NETS ITS EDUCATION SYSTEM AND HARDWON WORKPLACE BENEFITS WOULD BE ALTERED UNDER A COALITION ADMINISTRATION 9303150066 930315 BUSINESS BRIEF CARDINAL DISTRIBUTION INC ACCORD IS SET TO PURCHASE GEORGIA DRUG DISTRIBUTOR CARDINAL DISTRIBUTION INC IN A MOVE THAT WILL BOOST ITS DRUGDISTRIBUTION CAPABILITIES IN THE SOUTHEAST AGREED TO BUY A SAVANNAH GA WHOLESALE DRUG DISTRIBUTOR SOLOMONS CO FOR ABOUT 235 MILLION PLUS THE ASSUMPTION OF ABOUT 75 MILLION OF DEBT THE ACQUISITION WILL GIVE CARDINAL A DUBLIN OHIO WHOLESALE DRUG DISTRIBUTOR A PRESENCE IN GEORGIA THE CAROLINAS AND NORTHERN FLORIDA CLOSELY HELD SOLOMONS HAS UNDISCLOSED EARNINGS ON ANNUAL REVENUE OF ABOUT 180 MILLION CARDINAL REPORTED NET INCOME OF 23 MILLION OR 122 PER SHARE ON SALES OF 15 BILLION FOR THE NINE MONTHS ENDED DEC 31 SOLOMON'S MANAGEMENT WILL CONTINUE TO OPERATE THE 150EMPLOYEE COMPANY AS AN INDEPENDENT UNIT OF CARDINAL 9303150065 930315 BUSINESS BRIEF WORLDCORP AIRCRAFT LEASING COMPANY GETS FIRST OF FOUR MD11S WORLDCORP AN AIRCRAFT LEASING COMPANY BASED IN HERNDON VA SAID ITS WORLD AIRWAYS UNIT TOOK DELIVERY OF THE FIRST OF A FLEET OF MD11 WIDEBODY AIRCRAFT WORLD AIRWAYS SAID IT EXPECTS TO RECEIVE FOUR PASSENGER MD11S BY THE END OF MAY THE AIRCRAFT WILL INITIALLY BE EQUIPPED WITH 409 COACH SEATS BUT CAN ACCOMMODATE TWO AND THREECLASS SECTIONS THE FIRST THREE MD11S WILL BE LEASED IN APRIL TO GARUDA INDONESIA AND WILL BE PART OF A FIVEAIRCRAFT PROGRAM WITH GARUDA FOR THIS YEAR'S HADJ PILGRIMAGE TO MECCA THE COMPANY SAID IN THE SECOND QUARTER A YEAR EARLIER WORLD AIRWAYS SAID IT LEASED TWO AIRCRAFT TO GARUDA FOR THE PILGRIMAGE 9303150064 930315 LAW LEGAL BEAT MANY WOMEN TRIAL ATTORNEYS CLAIM DISCRIMINATION BY CLIENTS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL NEARLY 90 OF WOMEN TRIAL ATTORNEYS SAY CLIENTS DISCRIMINATE AGAINST THEM ON THE BASIS OF THEIR SEX ACCORDING TO A NATIONAL SURVEY THE DISCRIMINATION THE WOMEN CITED RANGED FROM SEXUAL HARASSMENT TO A CLIENT'S REFUSAL TO BE REPRESENTED IN COURT BY A WOMAN ACCORDING TO THE SURVEY BY PRENTICE HALL LAW & BUSINESS A LEGALPUBLISHING UNIT OF PARAMOUNT COMMUNICATIONS INC THE SURVEY FOUND THAT 45 OF WOMEN TRIAL ATTORNEYS HAVE BEEN SEXUALLY HARASSED BY A CLIENT IN THE PAST FIVE YEARS HARASSMENT AS DESCRIBED BY THE WOMEN RANGED FROM BEING CALLED SWEETIE TO BEING GROPED SEXUALLY AT FIRMS OF 50 OR MORE ATTORNEYS 62 REPORTED SEXUAL HARASSMENT BY CLIENTS WHILE DIFFICULTIES FOR WOMEN IN THE MALEDOMINATED LEGAL PROFESSION ARE HARDLY NEW THE SURVEY'S FOCUS ON CLIENTS' ATTITUDES ILLUSTRATES A PROBLEM THAT WOMEN SAY IS ESPECIALLY TROUBLESOME LAW FIRMS MAY EMBRACE POLICIES AGAINST DISCRIMINATION AND HARASSMENT WITHIN THE FIRM YET RESIST TRYING TO CONTROL THE BEHAVIOR OF CLIENTS WHO PAY THE BILLS MANY WOMEN ATTORNEYS SAY THEY ARE LIKELY TO LET A SEXIST REMARK OR EVEN BLATANT HARASSMENT GO UNREPORTED RATHER THAN RISK ALIENATING A CLIENT IT IS TRICKY TO DEAL WITH SAID COLLEEN MCMAHON A PARTNER AT NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON THERE IS A FEAR OF COMPROMISING THE BUSINESS RELATIONSHIP THERE IS ALSO THE FEAR THAT THE FIRM WILL CHOOSE THE CLIENT'S SIDE OVER THE ATTORNEY'S OF THE WOMEN SURVEYED ONLY 11 SAID THAT SEXUAL DISCRIMINATION FROM CLIENTS ISN'T A PROBLEM FOR WOMEN TRIAL LAWYERS AND 89 SAID THAT THE LACK OF WOMEN IN INFLUENTIAL POSITIONS AT CLIENT COMPANIES HAS HURT WOMEN ATTORNEYS' BUSINESS OPPORTUNITIES THAT COMPARES WITH 50 WHO SAID THEIR BUSINESS OPPORTUNITIES HAD BEEN HARMED BY THE UNWILLINGNESS OF MALE LAW FIRM PARTNERS TO ACT AS MENTORS CLIENTS' ATTITUDES TOWARD WOMEN HAVE IMPROVED OVER THE YEARS SAID ROXANNE BARTON CONLIN THE FIRST FEMALE PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA BUT THE DES MOINES IOWA ATTORNEY ADDED WOMEN IN THE LARGER LAW FIRMS ESPECIALLY WITH CORPORATE CLIENTS ARE HAVING TROUBLE STILL THERE IS THIS ATTITUDE THAT IF YOU WANT SOMEONE TOUGH AND STRONG TO REPRESENT YOU IN COURT YOU CAN'T RELY ON A WOMAN IT'S PLAINLY RIDICULOUS IN THE SURVEY WOMEN LITIGATORS SAID THAT OLDER WHITE MEN WERE THE CLIENTS MOST LIKELY TO BE UNCOMFORTABLE DEALING WITH WOMEN AND WOMEN WHO WERE SURVEYED SAID CLIENTS' BIASES CAN INFLUENCE THE DECISIONS OF SENIOR MALE PARTNERS RESULTING IN WOMEN BEING KEPT OFF CERTAIN CASES FOR INSTANCE THE SURVEY ALSO FOUND THAT 75 OF WOMEN LITIGATORS BELIEVE THEY ARE HELD TO A HIGHER STANDARD OF PERFORMANCE THAN THEIR MALE COUNTERPARTS WOMEN HAVE TO WORK HARDER IN OVERCOMING THE NATURAL UNCERTAINTY THAT CLIENTS HAVE IN DEALING WITH ANY ATTORNEY FOR THE FIRST TIME SAID ELLEN R NADLER A PARTNER AT NEW YORK LAW FIRM KRAMER LEVIN NAFTALIS NESSEN KAMIN & FRANKEL EXAMINING THEIR OWN BUSINESS PROSPECTS 35 OF THE WOMEN TRIAL LAWYERS IN THE SURVEY SAID THEIR OPPORTUNITIES FOR BUSINESS DEVELOPMENT WERE SEVERELY LIMITED COMPARED WITH THOSE OF THEIR MALE COUNTERPARTS 55 SAID THEIR OPPORTUNITIES WERE SOMEWHAT LIMITED THE SURVEY ALSO FOUND THAT 55 OF THE WOMEN LITIGATORS REPORTED INSTANCES OF SEXUAL HARASSMENT IN THEIR WORK IN THE PAST FIVE YEARS SIMILAR TO FINDINGS IN OTHER RECENT STUDIES IN ADDITION TO HARASSMENT BY CLIENTS 56 SAID THEY HAD BEEN HARASSED BY LAW FIRM COLLEAGUES 56 BY OPPOSING COUNSEL 31 BY JUDGES AND 10 BY COURTHOUSE PERSONNEL WHEN PEOPLE USE SELFSTORAGE LOCKERS FOR ILLEGAL PURPOSES DOES THE STORAGE COMPANY FACE POTENTIAL LIABILITY TWO SEPARATE RECENT USES OF SUCH LOCKERS TO IMPRISON EXXON CORP EXECUTIVE SIDNEY J RESO IN A KIDNAPPINGDEATH AND TO STORE MATERIALS ALLEGEDLY CONNECTED TO THE WORLD TRADE CENTER BOMBING BRING THE ISSUE TO MIND BUT LAWYERS SAY THE SELFSTORAGE COMPANIES GENERALLY STRUCTURE THEIR CONTRACTS WITH USERS IN SUCH A WAY AS TO AVOID LEGAL PROBLEMS STORAGE FACILITIES HAVE MUCH THE SAME KIND OF LEGAL RELATIONSHIP WITH RENTERS THAT LANDLORDS HAVE WITH TENANTS THE LAWYERS SAY RENTERS PROVIDE THEIR OWN LOCKS AND THE FACILITY ISN'T LEGALLY OBLIGATED TO CLOSELY MONITOR WHAT GOES IN AND OUT IN ADDITION SELFSTORAGE LEASES TYPICALLY PROHIBIT ILLEGAL ACTIVITIES AT A STORAGE SITE SAID ROBERT L BROWN EXECUTIVE DIRECTOR OF THE SELF STORAGE ASSOCIATION A TRADE GROUP BASED IN CINCINNATI MORE SPECIFICALLY THE LEASES USUALLY INCLUDE AN AGREEMENT NOT TO STOW AWAY EXPLOSIVES AND FLAMMABLE MATERIALS SUCH STIPULATIONS MAKE IT UNLIKELY THAT ANYONE WOULD WIN A LAWSUIT OVER AN ILLEGAL USE LAWYERS SAID TO SUCCESSFULLY SUE A STORAGELOCKER OWNER A PLAINTIFF WOULD HAVE TO SHOW THAT THE FACILITY HAD KNOWLEDGE OF WHAT WAS HAPPENING AND THAT'S NOT VERY LIKELY SAID KENNETH M PIKEN AN ATTORNEY IN LAKE SUCCESS NY AND GENERAL COUNSEL OF THE NEW YORK STATE SELFSTORAGE ASSOCIATION BOMBING SUSPECT MOHAMMED SALAMEH IN ADDITION TO USING A STORAGE LOCKER ALSO RENTED A VAN IN NEW JERSEY ALLEGEDLY TO CARRY EXPLOSIVES TO THE TRADE CENTER FROM RYDER SYSTEM INC JAMES M HERRON RYDER'S SENIOR EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL SAID THE COMPANY'S LEASES PROHIBIT HAULING EXPLOSIVES SOME STATES THOUGH NOT NEW JERSEY HAVE VICARIOUS LIABILITY LAWS THAT MAKE CARRENTAL COMPANIES LIABLE FOR DRIVER NEGLIGENCE BUT TRYING TO BLOW UP THE WORLD TRADE CENTER IS NOT NEGLIGENCE MR HERRON SAID WHO'S NEWS ELISE D SMITH FORMERLY DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES JOINED WASHINGTON LAW FIRM ARENT FOX SHE WILL CONCENTRATE ON ISSUES RELATED TO HEALTHCARE REFORM AND MEDICARE REIMBURSEMENT PAUL JACKSON JACK RICE FORMERLY CHIEF COUNSEL FOR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION JOINED THE LAW FIRM AS OF COUNSEL A NONPARTNER POSITION HEARTVALVE CASE PFIZER INC WON A ROUND IN ITS CONTINUING LITIGATION WITH RECIPIENTS OF ITS ALLEGEDLY DEFECTIVE HEART VALVES THE CALIFORNIA SUPREME COURT ORDERED A REVIEW OF A TRIAL JUDGE'S DECISION IN NOVEMBER ALLOWING HEARTVALVE RECIPIENTS FROM OTHER STATES TO SUE PFIZER IN CALIFORNIA AS A RESULT AN APPEALS COURT THAT HAD UPHELD THE TRIAL JUDGE IN A TWOLINE RULING WILL HAVE TO LOOK AT THE MATTER AGAIN CALIFORNIA IS A FAVORABLE VENUE FOR THE HEARTVALVE CLAIMS BECAUSE THE STATE IS ONE OF ONLY A HANDFUL THAT ALLOWS PLAINTIFFS TO CLAIM COMPENSATION FOR ANXIETY AND STRESS FROM FEAR THAT THEIR VALVES MIGHT FRACTURE JUNDA WOO CONTRIBUTED TO THIS COLUMN 9303150063 930315 BUSINESS BRIEF INDEPENDENT BANCSHARES INC COMPANY RECEIVES RELEASE FROM REGULATORY OVERSIGHT INDEPENDENT BANCSHARES INC SAID IT HAS BEEN RELEASED FROM THE REGULATORY SUPERVISION IT HAS OPERATED UNDER SINCE 1986 THE ABILENE TEXAS BANKING COMPANY HAD BEEN PLACED UNDER REGULATORY SUPERVISION BY THE FEDERAL RESERVE BANK OF DALLAS AFTER IT REPORTED A NEGATIVE NET WORTH UNDER THE SUPERVISORY AGREEMENT THE COMPANY HAD TO OBTAIN THE REGULATORY AGENCY'S APPROVAL FOR PAYMENT OF CASH DIVIDENDS AND FOR OTHER OPERATIONAL REQUIREMENTS A COMPANY SPOKESMAN SAID THE RELEASE WAS OBTAINED AFTER AN EXAMINATION BY THE FEDERAL RESERVE LAST YEAR REVEALED THAT THE COMPANY WAS IN COMPLIANCE WITH ALL BUT ONE ASPECT OF THE AGREEMENT THAT REQUIREMENT THE PAYMENT OF TAXES OWED TO ITS UNITS UNDER A TAXSHARING AGREEMENT HAS SINCE BEEN MET THE SPOKESMAN ALSO SAID THE COMPANY IS CONSIDERING PAYING A DIVIDEND INDEPENDENT BANCSHARES ALSO SAID ITS FIRST NATIONAL BANK IN STAMFORD UNIT RECEIVED APPROVAL FROM THE OFFICE OF THE COMPTROLLER OF THE CURRENCY TO MAKE A 15 MILLION CAPITAL DISTRIBUTION TO THE PARENT COMPANY 9303150062 930315 TIME WARNER U S WEST SAID TO BE IN TALKS PHONE COMPANY IS POSSIBLE INVESTOR IN CABLE TV BUT RESTRICTIONS EXIST BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC CONTINUING ITS SEARCH FOR ANOTHER STRATEGIC INVESTOR IS IN TALKS WITH A NUMBER OF TELEPHONE COMPANIES INCLUDING U S WEST INC ACCORDING TO PEOPLE FAMILIAR WITH THE DISCUSSIONS TIME WARNER WHICH HAS INTERESTS IN CABLE TELEVISION ENTERTAINMENT AND PUBLISHING HAS ALSO HAD DISCUSSIONS WITH OTHER TECHNOLOGY COMPANIES INCLUDING LONG DISTANCE PROVIDER AMERICAN TELEPHONE & TELEGRAPH CO THOSE PEOPLE SAID TIME WARNER DECLINED TO COMMENT ALTHOUGH TOP OFFICIALS ACKNOWLEDGE THE COMPANY HAS HAD WIDERANGING TALKS ON A NUMBER OF POTENTIAL BUSINESS TRANSACTIONS WITH AN ARRAY OF TECHNOLOGY COMPANIES U S WEST AND AT&T COULDN'T BE REACHED FOR COMMENT THE TELEPHONE COMPANIES HAVE BEEN SEEKING INVESTMENTS IN CABLE TV IN RECENT MONTHS IN FEBRUARY SOUTHWESTERN BELL CORP AGREED TO PAY 650 MILLION TO ACQUIRE TWO CABLE SYSTEMS FROM PRIVATELY OWNED HAUSER COMMUNICATIONS INC THOUGH PHONE COMPANIES ARE BARRED FROM OWNING INFORMATION SERVICES AND CABLE TV SYSTEMS IN THEIR OWN SERVICE AREAS THE PHONE COMPANIES CAN OWN INTERESTS IN SUCH SERVICES AND OPERATE SYSTEMS OUTSIDE THEIR SERVICE AREAS TIME WARNER HAS TALKED TO AT LEAST THREE TELEPHONE COMPANIES ABOUT A POTENTIAL INVESTMENT AND ITS TALKS WITH U S WEST HAVE BEEN GOING ON SPORADICALLY FOR CLOSE TO A YEAR ACCORDING TO THE PEOPLE FAMILIAR WITH THE TALKS U S WEST ALREADY IS WORKING WITH TIME WARNER AND TELECOMMUNICATIONS INC IN HUNGARY OPERATING CABLE SYSTEMS AND HOME BOX OFFICE U S WEST WHICH ALSO HAS INTERESTS IN A UK CABLE SYSTEM HAS BEEN AMONG THE MORE AGGRESSIVE TELEPHONE COMPANIES IN SEEKING TO ENTER VIDEO SERVICES IN THE US TIME WARNER HAS BEEN SEEKING STRATEGIC PARTNERS TO HELP IT PAY DOWN DEBT AND EXPAND ITS OPERATIONS LAST YEAR JAPAN'S TOSHIBA CORP AND ITOCHU CORP INVESTED 1 BILLION FOR A 125 STAKE IN TIME WARNER ENTERTAINMENT LP WHICH INCLUDES THE CABLE TV OPERATIONS THE WARNER BROS MOVIE STUDIO AND HOME BOX OFFICE INC EFFORTS BY TIME WARNER TO FIND ANOTHER INVESTOR IN EUROPE HAVE FAILED SO FAR AND THE COMPANY HAS TURNED ITS ATTENTION TO FINDING A STRATEGIC INVESTOR IN THE US COMPANY INSIDERS SAY IT ISN'T CLEAR WHETHER AN INVESTMENT BY U S WEST OR ANOTHER TELEPHONE COMPANY WOULD ALSO BE MADE IN THE TIME WARNER ENTERTAINMENT UNIT OR IN THE PARENT COMPANY AND ANY TELEPHONE COMPANY INVESTMENT IN TIME WARNER IS CERTAIN TO BE PROBLEMATIC FOR EXAMPLE THE HBO UNIT AS A PROGRAMMING SERVICE FOR CABLE SYSTEMS MIGHT BE CONSIDERED AN INFORMATION SERVICE PHONE COMPANIES ARE PROHIBITED FROM OWNING MORE THAN 5 OF A COMPANY WHICH CONTROLS THE CONTENT OF AN INFORMATION SERVICE IN THEIR OWN TERRITORIES MOREOVER A PHONE COMPANY ALSO WOULD BE RESTRICTED FROM ANY OWNERSHIP OF TIME WARNER CABLE SYSTEMS IN ITS OWN TELEPHONE SERVICE TERRITORY IT ISN'T CLEAR HOW MANY OF TIME WARNER'S CABLE SYSTEMS ARE IN U S WEST OPERATING AREAS IN THE SOUTHWESTERN PURCHASE THE HAUSER SYSTEMS ARE NOT IN THE TELEPHONE COMPANY'S SERVICE AREA BUT THAT TRANSACTION STILL REQUIRES APPROVAL FROM THE FEDERAL JUDGE WHO OVERSEES THE CONSENT DECREE THAT BROKE UP THE BELL TELEPHONE SYSTEM MONOPOLY IN 1984 ACCORDING TO THE PEOPLE FAMILIAR WITH THE TIME WARNER TALKS THE COMPANY ALREADY HAS BEEN EXPLORING LEGAL SOLUTIONS TO POSSIBLE INVESTMENTS BY A TELEPHONE COMPANY DENNIS PATRICK THE FORMER FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN WHO IS NOW CHAIRMAN OF THE NEWLY FORMED TIME WARNER TELECOMMUNICATIONS IS SAID TO BE LEADING THAT EFFORT IN WASHINGTON IN ADDITION AS CABLE AND TELEPHONE COMPANIES SEEK TO ENTER EACH OTHER'S MARKETS MANY OF THE RULES THAT NOW RESTRICT BOTH SIDES ARE EXPECTED TO BE REVIEWED BY THE FCC CONGRESS AND THE FEDERAL COURTS MARK ROBICHAUX CONTRIBUTED TO THIS ARTICLE 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 9303150061 930315 BUSINESS BRIEF PHARMACEUTICAL MARKETING SERVICES FIRM'S CONTROLLING HOLDER TO DISTRIBUTE PART OF STAKE PHARMACEUTICAL MARKETING SERVICES INC SAID WALSH INTERNATIONAL INC IN LONDON THE HOLDER OF MORE THAN 47 OF ITS STOCK VOTED TO DISTRIBUTE PART OF THAT STAKE TO WALSH SHAREHOLDERS AS A RESULT SAID PHARMACEUTICAL MARKETING IN PHOENIX ARIZ 34 MILLION OR ABOUT 26 OF THE 131 MILLION PHARMACEUTICAL MARKETING SHARES OUTSTANDING WILL BE DISTRIBUTED TO HOLDERS OF CLOSELY HELD WALSH WHICH WILL RETAIN A 21 DIRECT STAKE IN PHARMACEUTICAL MARKETING ALL SHARES CURRENTLY HELD BY WALSH ARE UNREGISTERED FOR TRADING AND SUBJECT TO A LOCKUP PROVISION THAT PREVENTS THEIR SALE FOR A CERTAIN PERIOD PHARMACEUTICAL MARKETING IS A PROVIDER OF INFORMATION ON THE PRESCRIPTION HABITS OF THOUSANDS OF DOCTORS THROUGH A LONGTERM LICENSING AGREEMENT PHARMACEUTICAL MARKETING HAS RIGHTS TO A DATABASE OWNED BY WALSH ITS PARENT COMPANY UNTIL A 1991 INITIAL PUBLIC OFFERING 9303150060 930315 BUSINESS BRIEF SCHERINGPLOUGH CORP FIRSTQUARTER CHARGE IS SET STOCK REPURCHASE CONTINUES SCHERINGPLOUGH CORP SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF 94 MILLION AFTER ADOPTING AN ACCOUNTING CHANGE FOR POSTRETIREMENT HEALTH BENEFITS THE MADISON NJ PHARMACEUTICAL COMPANY ALSO SAID IT COMPLETED A 1 BILLION STOCK BUYBACK PROGRAM PURCHASING 202 MILLION SHARES SINCE THE PROGRAM BEGAN IN SEPTEMBER 1990 THE COMPANY SAID IT'S CONTINUING AN ADDITIONAL 500 MILLION REPURCHASE PLAN AUTHORIZED LAST MONTH SCHERINGPLOUGH SAID IT ADOPTED THE RETIREE BENEFIT ACCOUNTING STANDARD EFFECTIVE JAN 1 IN ADOPTING THE STANDARD THE COMPANY SAID IT FULLY FUNDED ITS ACCUMULATED PRETAX OBLIGATION BY CONTRIBUTING 146 MILLION TO TWO IRREVOCABLE TRUSTS UNDER THE NEW RULE ANNUAL EXPENSE FOR ITS RETIREES' HEALTH BENEFITS IS EXPECTED TO BE LESS THAN 10 MILLION WHICH THE COMPANY SAID WOULD BE COMPARABLE TO PRIOR YEARS 9303150059 930315 BUSINESS BRIEF WESTMORELAND COAL CO FOURTHQUARTER YEAR LOSSES WIDEN AFTER SPECIAL CHARGES WESTMORELAND COAL CO PHILADELPHIA REPORTED WIDER FOURTHQUARTER AND YEAREND LOSSES FROM ONETIME SPECIAL CHARGES AND SAID IT WILL TAKE A CHARGE THIS YEAR FOR ADOPTING AN ACCOUNTING RULE ON POSTRETIREMENT MEDICAL BENEFITS THE COMPANY POSTED A FOURTHQUARTER LOSS OF 365 MILLION OR 543 A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 74 MILLION OR 89 CENTS A SHARE WESTMORELAND SHOWED A FULLYEAR LOSS OF 41 MILLION OR 568 A SHARE COMPARED WITH A LOSS OF 134 MILLION OR 162 A SHARE A YEAR EARLIER FOURTHQUARTER REVENUE DECREASED 7 TO 1309 MILLION FROM 141 MILLION WHILE FULLYEAR REVENUE FELL 47 TO 541 MILLION FROM 5684 MILLION THE COMPANY ATTRIBUTED THE LOSSES TO A SERIES OF SPECIAL CHARGES TOTALING 361 MILLION INCLUDING A RESERVE OF 282 MILLION FOR POTENTIALLY UNCOLLECTIBLE RECEIVABLES AND NOTES WESTMORELAND SAID IT WOULD TAKE A CHARGE OF ABOUT 10 MILLION TO 11 MILLION THIS YEAR BECAUSE OF THE NEW ACCOUNTING STANDARD WHICH REQUIRES COMPANIES TO FULLY ACCRUE FOR THE PROJECTED COST OF MEDICAL LIABILITIES FOR ITS RETIREES 9303150058 930315 TECHNOLOGY & HEALTH NUTEK USA TO SELL DESKTOP COMPUTERS THAT IT SAYS MIMIC APPLE'S MACINTOSH BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL NUTEK USA CORP SAID IT WILL BEGIN SELLING THIS MONTH THE FIRST COMMERCIALLY AVAILABLE DESKTOP COMPUTERS THAT MIMIC APPLE COMPUTER INC'S MACINTOSH SYSTEMS UNTIL NOW APPLE HASN'T HAD TO COMPETE WITH CLONES OF ITS DESKTOP COMPUTERS UNLIKE THE MARKET FOR MACHINES MADE BY INTERNATIONAL BUSINESS MACHINES CORP AND MOST OTHER PERSONAL COMPUTER MANUFACTURERS NUTEK WHICH IS BASED NEAR APPLE'S HEADQUARTERS IN CUPERTINO CALIF TOUTS ITS NEW MACHINES AS FUNCTIONALLY COMPATIBLE WITH MACINTOSH SYSTEMS BUT PRICED HUNDREDS OF DOLLARS BELOW COMPARABLE APPLE MODELS STILL INDUSTRY ANALYSTS AND NUTEK OFFICIALS DON'T EXPECT SALES OF THE MACINTOSH IMITATOR TO CUT DEEPLY INTO APPLE'S REVENUE THE NUTEK COMPUTERS WILL RUN MANY BUT NOT ALL MACINTOSH SOFTWARE THE COMPANY CONCEDES MAKING THE MACHINES LESS THAN COMPLETE REPLACEMENTS FOR APPLE MACHINES NUTEK'S COMPUTERS ARE MARVELS OF ENGINEERING SAID ANDY SEYBOLD AN INDUSTRY ANALYST WHO WAS BRIEFED BY NUTEK BUT IT'S GOING TO BE A REAL HARD SELL AN APPLE SPOKESMAN DECLINED TO COMMENT SPECIFICALLY ON NUTEK BUT OFFERED A GENERAL STATEMENT WE DON'T BELIEVE IT IS POSSIBLE TO CREATE A CLONE OF A MACINTOSH WITHOUT VIOLATING APPLE'S INTELLECTUAL PROPERTY RIGHTS WE HAVE AGGRESSIVELY DEFENDED THOSE RIGHTS IN THE PAST AND WILL CONTINUE TO DO SO IN THE FUTURE APPLE'S APPEAL RELIES ON ITS PRODUCTS' UNIQUE LOOK AND FEEL CONSEQUENTLY APPLE HAS VIGOROUSLY WAGED LEGAL BATTLES AGAINST FIRMS IT SEES AS INFRINGING ON ITS TECHNOLOGY THE APPLE SPOKESMAN SAID THERE HAVE BEEN NO LEGALLY AVAILABLE CLONES OF THE COMPANY'S DESKTOP MACINTOSH COMPUTERS HOWEVER THERE ARE SOME LAPTOP VERSIONS BEING PRODUCED UNDER AN APPLE LICENSE NUTEK IS TRYING TO CASH IN ON A MARKET FOR MACINTOSH SYSTEMS THAT IT SAYS ACCOUNTS FOR SALES OF 55 BILLION A YEAR NUTEK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER BENJAMIN CHOU SAID HE AND A TEAM OF 15 ENGINEERS CREATED THE COMPANY'S NEW COMPUTER FROM SCRATCH METICULOUSLY RECORDING ON COMPUTER STORAGE TAPE EACH STAGE OF DEVELOPMENT THEN LOCKING THE TAPE IN A VAULT THE SYSTEM SIMILAR TO APPLE'S SYSTEM USES A MOTOROLA INC 68030 MICROPROCESSOR AS ITS BRAIN THE COMPANY WAS STARTED WITH 10 MILLION FOUR YEARS AGO BY MR CHOU WHO HAS WORKED AS AN ENGINEER AT WYSE TECHNOLOGY SAN JOSE CALIF AND HEWLETTPACKARD CO PALO ALTO CALIF THE COMPANY'S INVESTORS INCLUDE THOMAS YUEN A FOUNDER OF AST RESEARCH INC IRVINE CALIF NUTEK IS TARGETING AS CUSTOMERS THOSE COMPANIES THAT RUN CERTAIN MACINTOSH APPLICATIONS OR USE MACINTOSH MACHINES ALONGSIDE IBMCOMPATIBLE MACHINES OUR STRATEGY IS NOT TO CRASH THE APPLE MARKET MR CHOU SAID OUR STRATEGY IS TO OFFER AN ALTERNATIVE IN SOME MARKETS MR CHOU SAID NUTEK HAS LINED UP ABOUT 60 DISTRIBUTORS AND COMPUTER MANUFACTURERS WORLDWIDE HE SAID HE EXPECTS THE MACINTOSH WORKALIKE MACHINES WILL BE PRICED AS LOW AS ABOUT 1650 EACH THE COMPANY ALSO HAS DEVELOPED A MODEL CALLED THE DUET WHICH CONTAINS BOTH A MOTOROLA MICROPROCESSOR AND AN INTEL CORP 486CHIP ALLOWING IT TO FUNCTION AS A MACINTOSHCOMPATIBLE AND AN IBMCOMPATIBLE MACHINE THE DUET IS EXPECTED TO SELL FOR ABOUT 3000 EACH HE SAID NUTEK ALSO WILL SELL CIRCUIT BOARDS AND SOFTWARE THAT COMPUTER MAKERS CAN INSTALL IN IBMCOMPATIBLE MACHINES ALLOWING THEM TO RUN MACINTOSH SOFTWARE MR CHOU SAID 9303150057 930315 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAVALIER HOMES INC AN OFFERING OF 11 MILLION SHARES OF COMMON STOCK VIA THE PRINCIPAL/EPPLER GUERIN & TURNER INC FEDERAL REALTY INVESTMENT TRUST AN OFFERING OF 25 MILLION SHARES FOSSIL INC COMMISSION FOR AN INITIAL OFFERING OF 24 MILLION SHARES OF COMMON STOCK VIA MONTGOMERY SECURITIES AND JC BRADFORD & CO HAVERTY FURNITURE COMPANIES INC AN OFFERING OF 1250000 COMMON SHARES SANFILIPPO & SON INC AN OFFERING OF 24 MILLION COMMON SHARES PLUS AN OVERALLOTMENT OPTION OF 360000 SHARES SNYDER OIL CORP AN OFFERING OF 75 MILLION OF CONVERTIBLE EXCHANGEABLE PREFERRED STOCK 9303150056 930315 MARKETING & MEDIA ADVERTISING OMNICOM GROUP TO BUY TBWA CREATING TRIO OF GLOBAL AGENCIES BY KEVIN GOLDMAN OMNICOM GROUP SAID IT IS ACQUIRING TBWA ADVERTISING THE MIDSIZE NEW YORK AGENCY THAT IS BEST KNOWN FOR ITS OMNIPRESENT ABSOLUT VODKA CAMPAIGN THE LONGRUMORED ACQUISITION FINALLY ATTAINS OMNICOM'S ELUSIVE GOAL OF ESTABLISHING A THREEAGENCY WORLDWIDE NETWORK THE TBWA DEAL A STOCK SWAP VALUED AT 50 MILLION TO 100 MILLION BY INDUSTRY EXECUTIVES GIVES OMNICOM A THIRD LEG THAT IS CONSIDERED ESSENTIAL BECAUSE IT ALLOWS YOU TO SERVE ONE MORE MAJOR AUTOMOTIVE ACCOUNT OR ONE MORE MAJOR ADVERTISER IN ANOTHER CATEGORY SAYS ROBERT HUNTINGTON MANAGING DIRECTOR AT ADMEDIA CORPORATE ADVISERS THIS IS A WAY TO ACHIEVE GROWTH OMNICOM'S CHIEF RIVAL INTERPUBLIC GROUP ALREADY HAS A WELLESTABLISHED THREEAGENCY WORLDWIDE NETWORK COMPOSED OF MCCANNERICKSON LINTAS WORLDWIDE AND THE LOWE GROUP TBWA WILL BE ADDED TO OMNICOM'S TWO MAJOR INTERNATIONAL AGENCIES BBDO AND DDB NEEDHAM AS WELL AS SEVERAL SMALLER SHOPS INCLUDING GOODBY BERLIN & SILVERSTEIN AND ALTSCHILLERREITZFELD OMNICOM HAD TRIED TO ESTABLISH A THIRD WORLDWIDE AGENCY BY COMBINING TRACYLOCKE BASED IN DALLAS AND ALTSCHILLER BUT THOSE PLANS NEVER CAME TO FRUITION LAST YEAR OMNICOM FOLDED TRACYLOCKE INTO DDB MAKING IT THE LARGER AGENCY'S DALLAS OFFICE DESPITE THE ACQUISITION FRENZY THAT ENGULFED MADISON AVENUE IN THE 1980S TBWA REMAINED INDEPENDENT FOR YEARS COFOUNDER AND CHIEF EXECUTIVE OFFICER WILLIAM TRAGOS STAUNCHLY INSISTED HE WOULDN'T SELL TBWA TO ANYONE IN DECEMBER WHEN THE WALL STREET JOURNAL REPORTED THAT TBWA WAS IN TALKS WITH OMNICOM HE DIMISSED IT AS A RUMOR IN AN INTERVIEW ON FRIDAY MR TRAGOS SAID IN DECEMBER IT WAS A RUMOR I COULDN'T SAY ANYTHING MORE BUT THE 57YEAROLD EXECUTIVE DECIDED THAT TBWA WHICH HE FOUNDED IN 1977 WITH PARISBASED PARTNERS ULI WIESENDANGER CLAUDE BONNANGE AND PAOLO AJOLDI HAD FINALLY REACHED A CROSSROADS IT COULDN'T FUND ANY FURTHER THE GROWTH THE AGENCY NEEDED WE WERE FACING A DILEMMA MR TRAGOS SAYS WE HAVE CLIENTS WHO WANT TO EXPAND OVERSEAS AND THAT MEANS INCREASED ADVERTISING WE HAVE TO INVEST IN THOSE LOCATIONS AS WELL AS INVEST IN KEEPING OUR BEST PEOPLE WE COULDN'T DO IT ALONE TBWA HAS ABOUT 1000 EMPLOYEES WORLDWIDE WHO WORK IN 14 OFFICES IN NINE COUNTRIES BUT WE WANT TO BE A TRULY GLOBAL AGENCY OMNICOM TAKES US TO THE NEXT STEP HE ADDS ABOUT 50 EMPLOYEES OWN TBWA SHARES AND WILL RECEIVE OMNICOM STOCK IN THE DEAL MR TRAGOS SAYS THE THREE REMAINING PRINCIPALS MR AJOLDI THE FOURTH DIED IN 1990 DON'T OWN A MAJORITY OF SHARES BUT DECLINED TO BE SPECIFIC OMNICOM FIRST APPROACHED TBWA A YEAR AGO RECALLS MR TRAGOS BUT THE DEAL WASN'T COMPLETED UNTIL FRIDAY MORNING IN OMNICOM'S NEW YORK OFFICES EXECUTIVES ON BOTH SIDES OF THE TABLE INSIST THE DEAL WON'T RESULT IN ANY CONFLICT AMONG EXISTING ACCOUNTS ALTHOUGH TBWA HAS SOME CLIENTS WHO COMPETE WITH CURRENT BBDO AND DDB NEEDHAM CLIENTS FOR EXAMPLE NEEDHAM HAS THE PRINCESS HOTELS ACCOUNT WHILE TBWA IS THE AGENCY FOR CLUB MED NEEDHAM HAS MICHELIN TIRES AND TBWA HANDLES BRIDGESTONE/FIRESTONE OMNICOM HAD WORLDWIDE BILLINGS OF 104 BILLION IN 1991 ACCORDING TO ADVERTISING AGE RANKING IT FOURTHLARGEST IN THE WORLD THAT INCLUDED BBDO BILLINGS OF 468 BILLION AND DDB NEEDHAM BILLINGS OF 409 BILLION TBWA WITH ANNUAL BILLINGS OF 1 BILLION INCLUDING 300 MILLION DOMESTICALLY WILL BE A FAR SMALLER SIBLING OMNICOM WAS FORMED AS A HOLDING COMPANY IN APRIL 1986 WITH THE MERGER OF THREE MADISON AVENUE GIANTS BBDO INTERNATIONAL THE DOYLE DANE BERNBACH GROUP AND NEEDHAM HARPER WORLDWIDE THE AGENCIES REMAIN INDEPENDENT AND THAT MR TRAGOS SAID IS OMNICOM'S MOST ATTRACTIVE ALLURE WE WILL RUN TBWA TOTALLY SEPARATE FROM BBDO AND DDB NEEDHAM SAID BRUCE CRAWFORD OMNICOM'S CHAIRMAN AND CHIEF EXECUTIVE WHO HAS KNOWN MR TRAGOS FOR A QUARTERCENTURY AND APPROACHED HIM ON NUMEROUS OCCASIONS ABOUT AN ACQUISITION ONLY TO BE REBUFFED MR CRAWFORD SAID OMNICOM WAS INTERESTED IN ACQUIRING AN AGENCY WITH PROMISE A MAJORITY OF US ADVERTISING AGENCY REVENUES HE CONTINUED WOULD COME FROM OVERSEAS BUSINESS TBWA HAS A STRONG EUROPEAN PRESENCE SAID MR CRAWFORD FOR HIS PART MR TRAGOS HAS NO INTENTION TO BE THE YOUNG WEAK SIBLING IN THE OMNICOM FAMILY SOUNDING LIKE AN UPSTART YOUNGSTER THE AD EXECUTIVE SAID YES I'M EXCITED OMNICOM THOUGHT ENOUGH OF US TO PUT OUR NAME ALONG THAT OF THE GIANTS BBDO AND DDB NEEDHAM BUT I'M LOOKING FORWARD TO COMPETING AGGRESSIVELY WITH THEM FOR NEW BUSINESS WE'RE NOW ON A LARGER STAGE TBWA HAS BEEN KNOWN PRINCIPALLY AS A PRINT AGENCY LARGELY BECAUSE OF A NEVERENDING SERIES OF MAGAZINE ADS FOR ABSOLUT VODKA FEATURING AN ABSOLUT BOTTLE IN THE SHAPE OF EVERYTHING FROM A BASKETBALL COURT ABSOLUT BOSTON TO A SWIMMING POOL ABSOLUT LA TO A BOTTLE UNDERWATER ABSOLUT TREASURE IT HAS DONE TV CAMPAIGNS FOR EAGLE SNACKS AND EVIAN WATER AND IT ALSO HAS A NEW LINE OF COMMERCIALS FOR CLUB MED WHICH IS PARTIALLY OWNED BY THE FRENCH TOURISM GROUP CLUB MEDITERRANEE SA THAT ENTICES INDIVIDUALS TO TAKE HOME A CLUB MED VACATION PERHAPS WITH OMNICOM'S BACKING TBWA CAN FINALLY LAND AN AUTOMOBILE ACCOUNT SOMETHING IT HASN'T BEEN ABLE TO DO DESPITE CONTINUOUSLY BEING INVOLVED IN MAJOR REVIEWS INCLUDING BMW OF NORTH AMERICA WHERE IT WAS A FINALIST OVERSEAS TBWA HANDLES THE NISSAN MOTOR ACCOUNT BUT IN THE US WE'VE ALWAYS BEEN A BRIDESMAID SAYS MR TRAGOS UNABLE TO EXPLAIN THE LOCKOUT THE ACQUISITION ISN'T LIKELY TO SPARK ANOTHER BUYING BINGE ALONG MADISON AVENUE IN FACT MR CRAWFORD SAID OMNICOM WAS FINISHED FOR THE FORESEEABLE FUTURE NO WE WON'T LOOK FOR A FOURTH AGENCY HE SAID WE AREN'T IN THE BUSINESS OF ADDING NETWORKS WE WON'T BE LOOKING AROUND THE BUREAU OF ALCOHOL TOBACCO & FIREARMS IS EXPECTED TO RELEASE THIS WEEK THE RULES THAT BREWERS SHOULD FOLLOW IF THEY WANT TO PUT THE ALCOHOL CONTENT OF BEER AND MALT LIQUOR ON THEIR LABELS LAST FALL A FEDERAL JUDGE STRUCK DOWN THE LAW THAT HAD KEPT ALCOHOLCONTENT INFORMATION OFF BEER LABELS SINCE THE 1930S ALTHOUGH THE US GOVERNMENT IS APPEALING THE RULINGS BREWERS NOW HAVE THE OPTION OF NOTING THE POTENCY OF THEIR BREWS ON CANS AND BOTTLES UNDER THE INTERIM REGULATIONS A DRAFT OF WHICH WAS PUBLISHED IN FOOD & DRINK DAILY ALCOHOL CONTENT MAY BE EXPRESSED ONLY AS A PERCENTAGE OF TOTAL VOLUME NOT OF WEIGHT IN ADDITION ALCOHOL CONTENT IS STILL PROHIBITED FROM ADS FOR BEER AND MALT LIQUOR AN ATF SPOKESMAN SAID THE BUREAU ISN'T NECESSARILY OPPOSED TO REVISITING WHETHER ALCOHOL CONTENT SHOULD BE ON LABELS BUT DECLINED TO COMMENT ON WHEN INTERIM REGULATIONS WOULD BE OFFICIALLY RELEASED THE REGULATIONS WILL GO INTO EFFECT WHEN THE BUREAU RELEASES THEM ALTHOUGH PUBLIC COMMENT ALSO WILL BE HEARD RAMADA SPEAKS FACING A TRADEMARK INFRINGEMENT SUIT FROM THREE COMPETITORS RAMADA INTERNATIONAL HOTELS & RESORTS DEFENDED ADS FOR ITS RENAISSANCE CHAIN WHICH FEATURE ENDORSEMENTS FROM CUSTOMERS NAMED HYATT HILTON AND MARRIOTT RAMADA INTERNATIONAL A UNIT OF NEW WORLD HOTEL HOLDINGS LTD OF HONG KONG SAID THAT WHILE THE SURNAMES ARE REGISTERED TRADEMARKS EACH ONE ALSO IS A SURNAME SHARED BY MANY PEOPLE ALL OF WHOM HAVE RIGHTS TO USE THEIR OWN NAME 9303150055 930315 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR A RECENT BOOST IN INFLATION IS TEMPORARY AND SHOULDN'T CAUSE ALARM ACCORDING TO THE FEDERAL RESERVE BOARD AND MANY PRIVATE ECONOMISTS THEY PREDICT PRICES WILL REMAIN RELATIVELY STABLE THROUGHOUT THE YEAR PRODUCER PRICES CLIMBED 04 IN FEBRUARY AND CONSUMER PRICES ROSE 05 IN JANUARY THE LARGEST INCREASE IN TWO YEARS THE INCREASE CAUSED CONCERN IN SOME QUARTERS ABOUT RENEWED INFLATION GOVERNMENT DATA DUE OUT THIS WEEK WILL SHOW THAT THE CONSUMER PRICE INDEX PROBABLY ADVANCED ANOTHER 04 IN FEBRUARY BUT THE INDEX SHOULD RISE MORE SLOWLY FOR THE REST OF THE YEAR SAID BILL WOOD SENIOR ECONOMIST AT CAHNERS ECONOMICS MR WOOD IS PREDICTING A 35 RISE IN THE CONSUMER PRICE INDEX FOR ALL OF 1993 SLIGHTLY HIGHER THAN THE 29 RATE LAST YEAR BUT A FAR CRY FROM THE DOUBLEDIGIT RATES OF THE 1970'S THE FED IS EVEN MORE OPTIMISTIC FORECASTING A 25TO275 RISE IN CONSUMER PRICES FOR 1993 FEBRUARY CONSUMER PRICES COULD RECEIVE SOME UPWARD PRESSURE FROM HIGHER PRODUCE COSTS AS A RESULT OF HEAVY RAIN IN CALIFORNIA MR WOOD SAID BUT CONTINUED LOW LABOR COSTS SHOULD BE A MODERATING FACTOR HE ADDED MR WOOD SAID HE SUPPORTS FED INFLATION HAWKS WHO HAVE MADE PRICE STABILITY A TOP PRIORITY I HOPE THEY KEEP INFLATION LOW HE SAID A NICE STABLE LOW INFLATION RATE IS A KEY COMPONENT OF LONGTERM ECONOMIC STABILITY THOSE WHO PROTEST THAT THE LOW INFLATION RATE IS STIFLING THE ECONOMIC RECOVERY ARE GUILTY OF POLITICAL MANEUVERING AT ITS WORST MR WOOD SAID 9303150054 930315 STOCK AND BOND RALLIES MAY KEEP ON ROLLING CREDIT MARKETS MANY FORECAST 30YEAR YIELD FALLING TO 65 BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE AN INFLATION SCARE ON FRIDAY THE BOND MARKET RALLY STILL HAS SOME STEAM LEFT MANY ECONOMISTS SAY FEW ECONOMISTS PREDICT THAT INTEREST RATES WILL JUMP SHARPLY MANY STILL HOLD HOPES THAT THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND WILL SLIDE AS LOW AS 65 OVER THE NEXT FEW MONTHS THOUGH THE ROUTE DOWN WILL NOT BE NEARLY AS STRAIGHT AS OVER THE PAST FEW MONTHS ON FRIDAY INVESTORS WERE SPOOKED BY A LARGERTHANEXPECTED JUMP IN THE PRODUCER PRICE INDEX FOR FEBRUARY A KEY MEASURE OF INFLATION THE INDEX ROSE 04 COMPARED WITH THE 03 INCREASE ANTICIPATED BY MANY ECONOMISTS BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THEY SENT THE PRICE OF THE 30YEAR BOND PLUNGING MORE THAN 1 1/4 POINTS FRIDAY OR MORE THAN 1250 FOR A BOND WITH A 1000 FACE VALUE TO 103 10/32 THE YIELD JUMPED TO 686 FROM 676 THE DAY BEFORE BUT FRIDAY'S JUMP IN YIELDS WAS A BIT OF AN OVERREACTION SAYS KEVIN FLANAGAN MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC ONCE THIS BLOODLETTING IS OVER AND SOME OF THE WEAKER HANDS ARE OUT OF THE MARKET WE'RE SETTING OURSELVES UP FOR SOME IMPROVEMENT HE SAYS BUT HE WARNS THAT IT MAY NOT HAPPEN RIGHT AWAY LAST WEEK TWO PROMINENT BONDMARKET ANALYSTS TURNED MORE BULLISH EDWARD HYMAN AND NANCY LAZAR ECONOMISTS AT ISI GROUP INC A NEW YORK INVESTMENT CONSULTING CONCERN SENT A FACSIMILE TO CLIENTS TITLED CONFESSIONS OF A PESSIMIST IN THE FAX THE TWO SAY THAT WHILE THEY HAVE BEEN BULLISH ON BONDS AND STOCKS FOR THAT MATTER DOWN DEEP WE HAVE WORRIED ABOUT THE RISK OF A GLOBAL DEPRESSION AND AS GOOD CONSERVATIVES WORRIED ABOUT CLINTON'S POLICIES BUT LAST WEEK THE NOTE RELATED WE GOT THE FEELING THAT MAYBE EVERYTHING WILL GO RIGHT THERE ARE A LOT OF LITTLE POSITIVES FOR THE BOND MARKET RIGHT NOW MS LAZAR SAYS THE BOND MARKET RALLY HAS BEEN A SHARED EXPERIENCE SHE SAYS A GLOBAL BOND MARKET RALLY WHERE INFLATIONARY PRESSURES WORLDWIDE ARE UNLIKELY TO BUILD UP SHE CITES LOW GOLD PRICES SLOW WAGE GROWTH IN THE US DECLINING BANK LENDING AND TALK OF CUTTING THE FEDERAL BUDGET DEFICIT AS FACTORS FAVORING SUBDUED INFLATION AND LOWER INTEREST RATES LIKE MANY OTHER MONEY MANAGERS AND ECONOMISTS MS LAZAR CONSIDERED THE FRIDAY CORRECTION NOTHING TO WORRY ABOUT INTEREST RATES HAD PLUNGED A BIT TOO FAST AND THE MARKET WAS DUE FOR A SHORTTERM SHAKEOUT SHE SAYS THE INFLATION SCARE IS BEING OVERDONE SAYS DONALD STRASZHEIM CHIEF ECONOMIST AT MERRILL LYNCH & CO WE REMAIN POSITIVE ON THE BOND MARKET HE SAYS HE SAYS THAT INTEREST RATES WILL REMAIN IN A RANGE OF 65 TO 7 OVER THE NEXT YEAR THE ECONOMIC PACKAGE PROPOSED BY PRESIDENT CLINTON HAS GOT TO BE ONE THAT PEOPLE ARE REASONABLY HAPPY WITH THE PRESIDENT IS GOING TO GET MOST OF WHAT HE WANTS HE ADDS MARK GRANT DIRECTOR OF CAPITAL MARKETS AT RODMAN & RENSHAW OF CHICAGO CALLS FRIDAY'S INTERESTRATE JUMP A VERY HEALTHY NORMAL MARKET CORRECTION BUT I HONESTLY FEEL WE'RE STILL IN A LOWER INTEREST RATE ENVIRONMENT HE SAYS AFTER FRIDAY'S JUMP IN RATES THE ENVIRONMENT HASN'T CHANGED ONE IOTA HE SAYS LIKE MS LAZAR HE POINTS TO LOWER INTEREST RATES ABROAD ESPECIALLY IN EUROPE AS A SIGN THAT THE US BOND MARKET RALLY HAS FURTHER TO GO SOME ECONOMISTS HAVE WORRIED THAT THE RECENT RISE IN COMMODITIES PRICES AS MEASURED BY THE COMMODITIES RESEARCH BOARD'S INDEX IS ANOTHER SIGN OF HIGHER INFLATION DOWN THE LINE A MAJOR RALLY IN LUMBER A KEY COMPONENT FOR HOUSE BUILDING HAS BEEN OF PARTICULAR CONCERN BUT THIS IS VERY SECONDARY TO CLINTON'S PROPOSALS AND TO LOWER INTEREST RATES ALL OVER THE WORLD SAYS MR GRANT MONEY THAT IS COMING BACK INTO THE BOND MARKET AS BONDS ARE CALLED OR REDEEMED EARLY IN THE MUNICIPAL MORTGAGEBACKED AND CORPORATE BOND MARKETS WILL KEEP RATES LOWER HE SAYS BECAUSE THERE IS STILL A TREMENDOUS AMOUNT OF INSTITUTIONAL MONEY THAT HAS TO BE PUT TO WORK MR GRANT DOES ADD THAT IT'S GOING TO BE VOLATILE AND CHOPPY OVER THE NEXT FOUR MONTHS BUT LONGTERM BOND YIELDS ARE UNLIKELY TO RISE OVER 7 HE SAYS THE BACKUP ON FRIDAY WAS ORDERLY WHICH IS WHY I FEEL EVEN MORE OPTIMISTIC NOW MR GRANT PREDICTS THAT 30YEAR TREASURY BOND YIELDS COULD DROP AS LOW AS 625 OVER THE NEXT FEW MONTHS MARY ROONEY AN ECONOMIST WITH SG WARBURG & CO SAYS THAT INVESTORS MAY HAVE BECOME TOO OPTIMISTIC ABOUT INFLATION DROPPING EVEN LOWER AND REACTED NEGATIVELY WHEN THE PRODUCER PRICE INDEX SHOWED THAT IT HAD NOT BUT THAT DOESN'T MEAN INFLATION IS ABOUT TO MARCH SHARPLY HIGHER THE INFLATION DATA ARE NOT AS BAD AS THEY SEEM SHE SAYS AND THE UNDERLYING TRENDS STILL POINT TO LOW INFLATION FRIDAY'S JUMP WAS A BLIP' WE'RE STILL GOING TO HAVE LOW INFLATION SHE SAYS EVEN THOUGH IT'S NOT TRENDING LOWER NOW INFLATION IS NOT GOING TO JUMP DRAMATICALLY EITHER ACCORDING TO MS ROONEY THE REAL LITMUS TEST FOR THE NEARTERM WILL BE THE CONSUMER PRICE INDEX TO BE RELEASED THIS WEDNESDAY A LARGE GAIN IN THIS INFLATION MEASURE COULD MAKE PEOPLE VERY NERVOUS BUT THE LONGTERM BEST CASE SCENARIO IS STILL TO MOVE TO THAT 65 TARGET FOR THE 30YEAR BOND YIELD SIMILARLY RON REUSS CHIEF ECONOMIST AT PIPER CAPITAL MANAGEMENT IN MINNEAPOLIS SAYS WE'RE STILL IN A LONGTERM RATE DESCENT HE SAYS THE LONG TERM OUTLOOK FOR INFLATION IS STILL FAVORABLE BUT THAT THE BOND MARKETS ARE GOING TO HAVE A BIT OF AN INFLATION SCARE OVER THE NEXT FEW WEEKS LONGTERM INTEREST RATES COULD BACK UP AS HIGH AS 710 DURING THAT PERIOD BUT WILL END UP AS LOW AS 6 BY YEAR'S END HE SAYS WHILE SOME BUSINESSES HAVE TAKEN ADVANTAGE OF THE SLOWLY GROWING ECONOMY BY RAISING THEIR PRICES A BIT THUS STOKING INFLATIONARY PRESSURES LONGTERM INFLATION SHOULD BE IN THE 2 TO 3 RANGE HE SAYS BUT MR REUSS HAS ONE CAVEAT THE FORMER SOVIET UNION HE SAYS THAT ECONOMIC PROBLEMS THERE COULD HAVE A MAJOR IMPACT ON OIL PRICES AND POSSIBLY BOOST INFLATION WORLDWIDE PRICES OF ALL TREASURY SECURITIES PLUNGED FRIDAY IN REACTION TO HIGHERTHANANTICIPATED INFLATION FIGURES FOR FEBRUARY THE 10YEAR NOTE FOR EXAMPLE DROPPED 7/8 POINT TO 101 TO YIELD 611 UP FROM 599 ON THURSDAY PRICES OF MANY MUNICIPAL MORTGAGEBACKED AND CORPORATE SECURITIES TUMBLED AS WELL ADDING TO THE PRESSURE ON THE LONG END FRIDAY WAS HEDGING OF CORPORATE DEBT DEALERS SAID SOME ESTIMATED THAT ABOUT 3 BILLION TO 5 BILLION IN CORPORATE DEBT ISSUED LAST WEEK WAS LEFT UNSOLD ON DEALER SHELVES DEALERS WITH SHELVES FULL OF UNSOLD CORPORATE NOTES AND BONDS OFTEN SELL BORROWED TREASURY SECURITIES IN THE HOPE OF BUYING THEM BACK AT LOWER PRICES AND POCKETING THE DIFFERENCE THIS WAY THEY CAN HEDGE THEMSELVES AGAINST ANY LOSSES IN VALUE OF THE CORPORATE SECURITIES THEY HAVE YET TO SELL IF INTEREST RATES RISE IN ADDITION THERE WAS WIDESPREAD SELLING OF SEVENYEAR AND 10YEAR NOTES BY INVESTORS WHO BOUGHT THOSE ISSUES AS A HEDGE AGAINST RISING PREPAYMENT RISK IN MORTGAGEBACKED SECURITIES WITH THE DECLINE IN LONGTERM INTEREST RATES STALLED PREPAYMENT RISK HAS LESSENED AND THOSE HOLDINGS OF TREASURYS ARE BEING TRIMMED TRADERS ADD THAT ANOTHER ELEMENT OF SUPPORT FOR THE MARKET HAS BEEN REMOVED AS YIELDS HAVE MOVED HIGHER MUNICIPAL DEFEASANCE PROGRAMS WHICH HAD PROVIDED CONTINUED BIDDING INTEREST FOR INTERMEDIATES HAVE BEEN PUT ON HOLD SEE RELATED ARTICLE ABREAST OF THE MARKET SMALL INVESTORS' FLOOD OF CASH BOLSTERS PRICES WSJ MARCH 15 1993