KITTANNING PA AOI COAL CO SAID IT SUSPENDED MINING OPERATIONS BECAUSE OF DECLINING COAL PRICES AND THE RECENT LOSS OF A MAJOR ORDER AS A RESULT THE COMPANY SAID IT WILL REDUCE ITS 120PERSON WORK FORCE BY ABOUT 85 EMPLOYEES INCLUDING BOTH HOURLY AND SALARIED WORKERS PRESIDENT THOMAS P BAUMGARTH SAID HE COULDN'T PREDICT WHEN MINING OPERATIONS WOULD RESUME BUT THAT THE COMPANY WAS WORKING TO OBTAIN NEW ORDERS AOI SAID AN ELECTRIC UTILITY DIDN'T RENEW A CONTRACT IN JANUARY THAT PROVIDED ABOUT A THIRD OF THE COMPANY'S 1992 REVENUE OF 355 MILLION THE BUSINESS HAS GOTTEN AWFULLY CUTTHROAT MR BAUMGARTH SAID 9303110087 930311 WHO'S NEWS GOEDDEL TO LEAVE GENENTECH AUG 1 AND JOIN TULARIK BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO CALIF A MEMBER OF GENENTECH INC'S ORIGINAL BRAIN TRUST PLANS TO LEAVE THE BIOTECHNOLOGY COMPANY AUG 1 TO WORK AT A GENETIC RESEARCH COMPANY HE COFOUNDED DAVID V GOEDDEL DIRECTOR OF MOLECULAR BIOLOGY AT GENENTECH WILL BECOME VICE PRESIDENT FOR RESEARCH AT TULARIK INC A CLOSELY HELD BIOTECH COMPANY ALSO BASED IN SOUTH SAN FRANCISCO THE ONEYEAROLD COMPANY IS TRYING TO FIND THE PROCESSES THAT CONTROL SPECIFIC DISEASE GENES TO DEVELOP SPECIFIC DRUGS FOR THEM FOR THE PAST 15 YEARS AT GENENTECH THE 41YEAROLD DR GOEDDEL HAS BEEN KNOWN AS ITS POWERHOUSE CLONER DOING PIONEERING WORK ON HUMAN GENES THAT HELPED LEAD TO THE CREATION OF MANY OF THE BIOTECHNOLOGY INDUSTRY'S EARLY PRODUCTS THESE INCLUDE RECOMBINANT HUMAN INSULIN FOR DIABETES ALPHA INTERFERON FOR CANCER AND VIRUSES HUMAN GROWTH HORMONE FOR DWARFISM TPA FOR HEART ATTACKS AND GAMMA INTERFERON FOR IMMUNE DYSFUNCTION IN AN INTERVIEW DR GOEDDEL SAID HE WAS DRAWN TO TULARIK BY THE CHALLENGE RATHER THAN DISSATISFACTION WITH GENENTECH WHICH HAS GROWN FROM A SCIENTIFIC BOUTIQUE INTO A MAJOR MANUFACTURER WITH MORE THAN A HALF BILLION DOLLARS IN ANNUAL REVENUE GENENTECH IS 60OWNED BY SWISS DRUG COMPANY ROCHE HOLDING LTD I WAS THE FIRST SCIENTIST WHO CAME TO WORK HERE I'M EXCITED ABOUT WHAT I'M GOING TO BE DOING BUT IT'S TOUGH TO LEAVE HE SAID THERE'S MORE THAN ONE PERSON WHO THINKS I'M CRAZY I'VE BEEN TREATED FANTASTICALLY ARTHUR LEVINSON GENENTECH'S DIRECTOR OF RESEARCH CALLED DR GOEDDEL'S DEPARTURE EMOTIONALLY A SIGNIFICANT EVENT HE'S MY BEST FRIEND HERE THE COMPANY IS EXPECTED TO CONDUCT A WIDE SEARCH FOR HIS SUCCESSOR BUT DR LEVINSON ADDED DR GOEDDEL WILL CONTINUE CONSULTING FOR GENENTECH ONE DAY A WEEK DR GOEDDEL'S DEPARTURE ISN'T EXPECTED TO HURT GENENTECH WHICH NOW HAS ON BOARD A DOZEN SENIOR SCIENTISTS IN THE FIELD OF MOLECULAR BIOLOGY ALSO BIOTECHNOLOGY HAS GROWN MORE SOPHISTICATED AND DIVERSE WITH STRUCTURAL BIOLOGY PLAYING AN INCREASINGLY KEY ROLE DAVE HAD A PROFOUNDLY IMPORTANT ROLE IN THE EARLY STAGES OF THE COMPANY WHEN THERE WERE VERY FEW MOLECULAR BIOLOGISTS NOW THE TECHNOLOGY IS MATURE AND MANY PEOPLE KNOW HOW TO DO IT DR LEVINSON SAID NOW YOU CAN CLONE A GENE USING POLYMERASE CHAIN REACTION TECHNOLOGY IN THREE HOURS WHERE IT ONCE TOOK SIX MONTHS TO TWO YEARS AMONG TULARIK'S FIRST GOALS WILL BE TREATMENTS FOR HERPESSIMPLEX AND EPSTEINBARR VIRUSES DR GOEDDEL DISCLOSED THE COMPANY ALSO PLANS TO TAKE AIM AT A WIDE VARIETY OF INFLAMMATORY DISEASES LIKE ARTHRITIS BY TRYING TO BLOCK PARTICLES CALLED ADHESION MOLECULES THAT ARE INVOLVED IN INFLAMMATORY REACTIONS THE THIRD AND LONGESTRANGE PROJECT ON TULARIK'S AGENDA IS A MORE DIFFICULT PLAN TO ANALYZE AND TREAT HYPERCHOLESTEROLEMIA THROUGH THE GENES FOR THE RECEPTOR FOR LOWDENSITY LIPOPROTEIN THE SOCALLED BAD CHOLESTEROL IMPLICATED IN HEART DISEASE UNDERSTANDING HOW TO DO THIS COULD BE A TOUGH PROJECT HE ADMITTED IT'S ATTRACTIVE BUT IT HAS A LOT OF RISKS 9303110086 930311 INTERNATIONAL ECONOMIC UPHEAVAL RESHAPES ITALY'S IRI STATE CONGLOMERATE TRIES TO SHAKE OFF POLITICIANS' GRIP BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE THE HUGE ITALIAN GOVERNMENT HOLDING COMPANY DID A VERY UNITALIAN THING WHEN THE HEAD OF ITS STEEL UNIT ANNOUNCED IN JANUARY THAT THINGS WEREN'T GOING VERY WELL IT FIRED GIOVANNI GAMBARDELLA MANAGING DIRECTOR AT ILVA SPA AND HIS BOARD AFTER HE TOLD THE PARENT COMPANY THAT RATHER THAN BREAKING EVEN AS EXPECTED ILVA PLUNGED 11 BILLION INTO THE RED IN THE FIRST 11 MONTHS OF THE YEAR THEN IRI DID SOMETHING EVEN MORE UNITALIAN IT BROUGHT IN A SENIOR EXECUTIVE OF NIPPON STEEL CORP HAYAO NAKAMURA TO RETURN ILVA TO PROFITABILITY AND JUST LAST MONTH IRI DISMISSED THE BOARD OF IRITECNA ITS UNPROFITABLE CIVIL ENGINEERING UNIT AND NAMED OUTSIDERS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SO IT GOES AS THE WINDS OF CHANGE RIP THROUGH ITALY THE OUSTER OF MR GAMBARDELLA ISN'T RELATED TO THE WIDENING CORRUPTION SCANDALS THAT ARE REVOLUTIONIZING THE WAY THINGS ARE DONE IN ITALY THOUGH IRI IS GETTING ITS SHARE OF SCRUTINY RATHER IT REFLECTS A PARALLEL REVOLUTION IN THE ITALIAN ECONOMY AS THE GOVERNMENT STRUGGLES TO RIGHT ITS FINANCES AND DISMANTLE A 60YEAROLD STRUCTURE OF STATE OWNERSHIP AND MANAGEMENT OF BUSINESS AND INDUSTRY NOWHERE IS THIS MORE EVIDENT THAN AT IRI THE LUMBERING STATEOWNED HOLDING COMPANY ORIGINALLY SET UP BY MUSSOLINI TO RESCUE THE ITALIAN BANKING INDUSTRY IN SIX DECADES IT HAS EVOLVED INTO A CUSHY HAVEN OF POLITICAL PATRONAGE WHOSE TENTACLES REACH INTO EVERY CONCEIVABLE NICHE OF ITALIAN INDUSTRY WITH 400000 EMPLOYEES IT IS EUROPE'S LARGEST CONGLOMERATE NOW IRI IS SHEDDING NOT ONLY EXECUTIVES BUT ALSO ENTIRE BUSINESSES AND IT IS TIDYING UP ITS SPRAWLING ORGANIZATIONAL CHART IRI HAS BEEN CONVERTED FROM A STATE INSTITUTE INTO A JOINT STOCK COMPANY AND IS STARTING TO BE RUN LIKE ONE IN THE OLD DAYS APPOINTING MR NAKAMURA TO HEAD THE STEEL COMPANY MIGHT HAVE TAKEN SIX MONTHS OF DISCUSSION AND STILL NOT HAPPENED SAYS DUCCIO VALORI IRI'S CHIEF ECONOMIST NOW IT TOOK US TWO WEEKS LIKE OTHER STATEOWNED GROUPS TARGETED FOR PRIVATIZATION IRI IS FINDING THE TRANSITION FROM POLITICIZED STATE MANAGEMENT TO FREEMARKET PRINCIPLES FAR FROM EASY POWER STRUGGLES ARE EMERGING BETWEEN OLD MANAGERS AND NEW SOME SUBSIDIARIES ARE RESISTING CHANGE WORKERS ARE STRIKING WE'RE TRYING TO CHANGE THE WHEELS WHILE THE TRAIN IS STILL RUNNING SAYS ALESSANDRO OVI IRI'S SENIOR VICE PRESIDENT FOR INTERNATIONAL AFFAIRS THE CONGLOMERATE IS ALSO BEING SCRUTINIZED FOR ITS ROLE IN THE COUNTRY'S MASSIVE CORRUPTION SCANDAL TRADITIONALLY A CHRISTIAN DEMOCRATIC FIEFDOM IRI HASN'T BEEN AS HARDHIT IN THE SCANDAL AS SOCIALISTDOMINATED PETROCHEMICAL GIANT ENI BUT SEVERAL OF ITS SUBSIDIARIES AND EXECUTIVES HAVE BEEN TARGETED IN THE KICKBACK PROBE IRI CHAIRMAN FRANCO NOBILI IS UNDER INVESTIGATION FOR EXTRA COSTS HIS FORMER COMPANY COGEFAR CHARGED FOR REVAMPING ROME'S OLYMPIC STADIUM MR NOBILI'S SPOKESMAN SAYS THE EXECUTIVE MAINTAINS THAT THE INCREASES WERE LEGITIMATE AND THAT THE INQUIRY ISN'T RELATED TO THE BRIBERY CHARGES EMANATING FROM MILAN CLEARLY IT'S NO LONGER BUSINESS AS USUAL AT IRI AFTER IT BAILED OUT THE BANKING INDUSTRY IN THE 1930S IRI WENT ON TO SAVE INDUSTRIAL COMPANIES IN THE POSTWAR ERA EXPAND INTERNATIONALLY THEN SERVE AS THE STATE'S PRINCIPAL CREATOR OF JOBS IN ITALY'S DEPRESSED MEZZOGIORNO REGION BUT THE POLITICAL COALITION THAT NOURISHED THE SPRAWLING CONGLOMERATE WITH SUBSIDIES IN RETURN FOR THE RIGHT TO INTERFERE BEGAN TO CRUMBLE WITH THE 1989 FALL OF THE BERLIN WALL WITH VOTERS NO LONGER WILLING TO OVERLOOK CORRUPTION POOR SERVICE AND HIGHER TAXES TO PREVENT ITALY'S COMMUNISTS FROM TAKING POWER THE GOVERNMENT IN 1991 PULLED THE PLUG ON IRI FUNDING THAT HAS FORCED IRI TO SELL OFF COMPANIES BUT IT HAS ALSO MEANT FEWER POLITICAL APPOINTEES ON THE BOARD FOR THE FIRST TIME IN MANY DECADES IRI EXECUTIVES SAY THEY ARE MAKING DECISIONS LIKE MANAGERS INSTEAD OF POLITICIANS SPREADING OUT THE WALLSIZED PLAN WITH 300 BOXES THAT IRI CALLS ITS ORGANIZATION CHART SENIOR VICE PRESIDENT OVI CROSSES SOME OUT AND DRAWS CIRCLES AROUND OTHERS NEXT YEAR YOU'LL SEE LESS THAN HALF THESE BOXES ON THIS PAGE HE SAYS BOARDS THAT HAVE 16 PEOPLE NOW WILL HAVE FIVE HUNDREDS OF BOARD POSITIONS AT IRI UNITS ARE BEING AXED AND WITH THEM HE SAYS POLITICAL INTERFERENCE STILL INVESTORS DOUBT THAT POLITICAL INFLUENCE AT IRI WILL WANE SIGNIFICANTLY ANYTIME SOON WHILE IT'S TRUE THEY ARE ACTING MORE ECONOMICALLY IT'S BECAUSE OF THE SERIOUSNESS OF THE PROBLEMS THEY ARE IN SAYS FRANCESCA LOLLI OF STOCK BROKERAGE FIRM HOARE GOVETT WHO ATTENDED AN IRI PRESENTATION TO LONDON'S INVESTMENT COMMUNITY IN JANUARY IRI'S AND ITALY'S HUGE DEBT HAS FORCED MANAGERS AND POLITICIANS TO ACCEPT PRIVATIZATION SHE SAYS IRI NOW IS IN A TRANSITIONAL PHASE UNDER THE GOVERNMENT PRIVATIZATION PROGRAM AND WON'T FULLY STABILIZE UNTIL THE 1992 ACCOUNTS HAVE BEEN SIGNED PROBABLY BY MAY AFTER IT WAS MADE A JOINT STOCK COMPANY LAST AUGUST ITS BOARD OF 15 FIVE OF WHOM WERE POLITICAL APPOINTEES WAS SHRUNK TO THREE CHAIRMAN NOBILI MICHELE TEDESCHI AND CORRADO FIACCAVENTO OF THE BUDGET MINISTRY IN MAY THE BOARD WILL BE EXPANDED AND POWER REDISTRIBUTED WITH IRI EXECUTIVES BETTING THAT MR TEDESCHI WILL KEEP HIS NO 1 ROLE ITALIAN INDUSTRY SOURCES MAINTAIN THAT IRI ISN'T HAPPY ABOUT THE FORCED PRIVATIZING AND RESTRUCTURING UNDER THE SURFACE SAYS AN OFFICIAL OF A LARGE INDUSTRY ASSOCIATION THERE IS A HUGE POWER FIGHT BETWEEN THE OLD GROUPS AND INCOMING GROUPS WHILE IRI EXECUTIVES WANT TO PRIVATIZE THE SUBSIDIARY COMPANIES ARE RESISTING HE SAYS INDEED SAYS MS LOLLI WORKERS AT THE SME FOOD GROUP IN NAPLES HAVE GONE ON STRIKE AGAINST PRIVATIZATION PLANS BY THE END OF THE YEAR IRI HOPES TO HAVE SOLD THE FOOD GROUP AND ITS 67 STAKE IN CREDITO ITALIANO RAISING AS MUCH AS 66 BILLION THAT WOULD BE USED TO REPAY IRI DEBT WHICH TOTALED 70 TRILLION LIRE 436 BILLION AT THE END OF 1992 IRI EXECUTIVES SAY ALL BUT 10 TRILLION TO 13 TRILLION LIRE OF THIS DEBT CAN BE FINANCED THROUGH CASH FLOW OR DIVIDENDS FROM PROFITABLE SUBSIDIARIES THE BANKS AND THE TELECOMMUNICATIONS UNIT STET IF BANCA COMMERCIALE IS ALSO SOLD THEY SAY THE PROCEEDS WILL MORE THAN COVER IRI'S EXCESS INDEBTEDNESS STET WHICH IS IN THE PROCESS OF MERGING THE STATE'S LONGDISTANCE COMPANY INTO ITS OPERATIONS STILL PLANS TO INVEST 10 TRILLION LIRE A YEAR FOR THE NEXT FOUR YEARS TO IMPROVE SERVICE STET HAS ALWAYS BEEN SELFFINANCING SAYS AN OFFICIAL OF THE 53OWNED UNIT LIKE PHONE COMPANIES ELSEWHERE STET PLANS TO RAISE THE COST OF LOCAL SERVICE AND LOWER LONGDISTANCE PRICES TO COMPETE WITH OTHER CARRIERS SIMILARLY ALITALIA IRI'S AIRLINE SAYS IT PLANS TO GO AHEAD WITH PLANS TO UPGRADE ITS FLEET BY SPENDING 327 TRILLION LIRE OVER THE NEXT FOUR YEARS WITHOUT RUNNING TO IRI TO PICK UP THE TAB AS IN THE PAST IRI ITSELF HAS NO INTENTION OF DISAPPEARING SOON THOUGH SOME OF THE HOLDING COMPANY'S 500 EMPLOYEES COULD BE LET GO ULTIMATELY SAY SOME EXECUTIVES IRI COULD SHRINK ITS STAKES IN ITS VARIED BROOD BECOMING AN INFLUENTIAL MINORITY OWNER OF MANY PROFITABLE COMPANIES AND THEN SAYS ONE EXECUTIVE IT TOO MIGHT GO PRIVATE AND AT THAT TIME THE EXECUTIVE SAYS THE GOVERNMENT WOULD GET SOME MONEY BACK LISA BANNON IN MILAN CONTRIBUTED TO THIS ARTICLE 9303110085 930311 WHO'S NEWS PILGRIM'S PRIDE CORP PILGRIM'S PRIDE CORP PITTSBURG TEXAS LINDY M BUDDY PILGRIM WAS NAMED TO THE NEW POSITION OF PRESIDENT OF US OPERATIONS AND SALES AND MARKETING OF THIS POULTRY PROCESSOR MR PILGRIM 38 YEARS OLD IS THE NEPHEW OF THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LONNIE A BO PILGRIM HE HAS 21 YEARS OF EXPERIENCE IN SALES MARKETING AND OPERATIONS AND WAS MOST RECENTLY PRESIDENT OF A POULTRY INDUSTRY CONSULTING FIRM IN HIS NEW POST HE WILL FOCUS ON SALES AND MARKETING THE COMPANY SAID MONTY HENDERSON REMAINS PRESIDENT AND CHIEF OPERATING OFFICER FOCUSING ON OPERATIONS 9303110084 930311 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IF YOU OWN A PERSONAL COMPUTER AND HAVE A RELATIVELY UNCOMPLICATED TAX SITUATION IT MAKES GREAT SENSE TO PREPARE YOUR INCOME TAXES USING ONE OF THE TWO LEADING TAXPREPARATION SOFTWARE PACKAGES TURBOTAX/MACINTAX BY CHIPSOFT OR TAXCUT BY MECA SOFTWARE BUT IT'S ALSO IMPORTANT TO KEEP IN MIND THE LIMITATIONS OF SUCH PROGRAMS THEY AREN'T A TAXPAYER'S PANACEA THESE TWO PROGRAMS THIS YEAR ARE SO SIMILAR IT'S HARD TO CHOOSE BETWEEN THEM AND NEITHER OFFERS ANY BIG INNOVATIONS BOTH ARE WELLDESIGNED INEXPENSIVE AND COME IN VERSIONS FOR PLAIN IBMCOMPATIBLE COMPUTERS RUNNING DOS SOFTWARE IBMCOMPATIBLES RUNNING MICROSOFT'S WINDOWS SOFTWARE AND APPLE COMPUTER'S MACINTOSH MODELS THEY ARE A TREMENDOUS AID IN NAVIGATING THROUGH THE MAZE OF BEWILDERING FORMS DREAMED UP BY THE INTERNAL REVENUE SERVICE PROMPTING YOU TO FILL OUT THE CORRECT ONES AND DOING ALL THE MATH CALCULATIONS ACCURATELY BUT THAT'S ABOUT ALL THEY DO HERE ARE SOME THINGS THEY DON'T DO FIRST AND FOREMOST TAX SOFTWARE ISN'T A SUBSTITUTE FOR A REAL ACCOUNTANT OR FINANCIAL ADVISER THOUGH THESE PROGRAMS BOAST THAT THEY ARE PACKED WITH EXPLANATIONS OF THE TAX FORMS AND INCLUDE SOME BASIC TAX TIPS THEY AREN'T DESIGNED TO ADVISE TAXPAYERS ON HOW TO INTERPRET THE TAX CODE OR HOW TO TREAT INCOME OR DEDUCTIONS THAT FALL INTO GRAY AREAS BOTH COMPANIES GUARANTEE THE ACCURACY OF THEIR CALCULATIONS AND PROMISE TO PAY ANY IRS PENALTY LEVIED AGAINST USERS BUT ONLY IF THE PENALTY STEMS SOLELY FROM MATH ERRORS THE PROGRAMS MADE INDEED BOTH COMPANIES IN THEIR SOFTWARE MANUALS EXPLICITLY DISCLAIM RESPONSIBILITY FOR HOW USERS OF THE PROGRAMS DO THEIR TAXES MECA'S DISCLAIMER LAMENTS THAT THE TAX LAWS ARE VERY COMPLICATED AND THE DEVELOPERS ARE ONLY HUMAN THERE IS NO GUARANTEE THAT THIS OR ANY OTHER PROGRAM WILL FIND ALL OF THE ITEMS YOU SHOULD INCLUDE ON YOUR TAX RETURN CHIPSOFT PLEADS IN TINY TYPE THAT ERRORS CAN OCCUR AND THAT TAX LAWS AND REGULATIONS CHANGE FREQUENTLY AND THEIR APPLICATION CAN VARY WIDELY THIS MEANS YOU SHOULDN'T THINK OF TAX SOFTWARE AS YOUR ELECTRONIC ACCOUNTANT INSTEAD THESE PROGRAMS ARE MORE LIKE SUBSTITUTES FOR STOREFRONT TAX PREPARERS WHO MAINLY DO THE MECHANICS OF FILLING OUT YOUR FORMS SECOND TAX SOFTWARE WON'T NECESSARILY SAVE YOU MONEY IT WILL PROBABLY SPARE YOU FROM MAKING MATH ERRORS BUT THAT ALSO INCLUDES THOSE ERRORS THAT MAY HAVE RESULTED IN YOUR PAYING LESS IT MAY REMIND YOU OF DEDUCTIONS OR CREDITS YOU MIGHT HAVE OTHERWISE OVERLOOKED BUT IT MAY ALSO REMIND YOU TO DECLARE SOME KINDS OF INCOME YOU MIGHT HAVE OVERLOOKED THIRD DOING YOUR TAXES ON A COMPUTER WON'T LET YOU FILE THEM ELECTRONICALLY TO THE IRS THAT'S BECAUSE 15 YEARS INTO THE PERSONALCOMPUTER ERA THE IRS STILL LACKS THE COMPUTER AND PHONE CAPACITY TO ACCEPT INDIVIDUAL TRANSMISSIONS FROM TAXPAYERS INSTEAD THE GOVERNMENT HAS CREATED A CLASS OF MIDDLEMEN ELECTRONICFILING COMPANIES THAT CHARGE TAXPAYERS TO TRANSMIT THEIR RETURNS ELECTRONICALLY THESE FIRMS SUPPOSEDLY MAKE LIFE EASIER ON THE IRS BY TRANSMITTING RETURNS IN BATCHES USING HIGHSPEED MODEMS MECA CHARGES FILERS 15 FOR THIS SERVICE CHIPSOFT CHARGES 20 MOREOVER EVEN THESE FILINGS AREN'T PAPERLESS IF YOU FILE ELECTRONICALLY THE GOVERNMENT ALSO REQUIRES YOU TO MAIL IN A PAPER FORM BEARING YOUR SIGNATURE ACCOMPANIED BY PAPER COPIES OF W2 FORMS FROM YOUR EMPLOYERS THE GOVERNMENT IS PUBLICIZING A NEW WAY TO FILE CALLED THE 1040PC IT SOUNDS HIGH TECH BUT IT'S JUST A COMPRESSED PAPER FORM GENERATED BY TAX SOFTWARE THAT SQUEEZES MOST OF YOUR TAX DATA ONTO ONE OR TWO PAGES THE IRS SAYS THIS MAKES IT EASIER FOR ITS CLERKS TO COPY THE INFORMATION INTO GOVERNMENT COMPUTERS NO THE IRS DOESN'T USE SCANNERS TO READ IN THE DATA TAXPAYERS USING THE 1040 PC MUST MAIL IT IN SO WHICH OF THE TWO LEADING TAX PACKAGES SHOULD YOU BUY I DON'T HAVE A STRONG PREFERENCE THIS YEAR BECAUSE THE TWO HAVE EVOLVED INTO SIMILAR PRODUCTS YOU WON'T GO WRONG WITH EITHER ONE LAST YEAR TAXCUT WAS ESSENTIALLY JUST A DOS PACKAGE IT HAD ONLY A WEAK WINDOWS VERSION AND NO MACINTOSH VERSION THIS YEAR IT HAS VERY GOOD WINDOWS AND MAC VERSIONS PROVIDING STRONG COMPETITION FOR CHIPSOFT'S FORMIDABLE TURBOTAX FOR WINDOWS AND MACINTAX FOR MACINTOSH SIMILARLY CHIPSOFT HAS MOVED IN ON TAXCUT'S BIGGEST SPECIALTY ITS INTERVIEW FEATURE THIS SPARES THE TAXPAYER FROM FILLING OUT THE FORM DIRECTLY AND INSTEAD PREPARES THE RETURN BY ASKING A SERIES OF SPECIFIC QUESTIONS AND OFFERING TIPS AND EXPLANATIONS TO HELP THE USER ANSWER TURBOTAX AND MACINTAX NOW BOTH HAVE STRONG INTERVIEW FEATURES LIKE TAXCUT ON BALANCE I'D GIVE A SLIGHT EDGE TO TAXCUT FOR A NUMBER OF REASONS FIRST I THINK ITS EXPLANATIONS ARE A BIT RICHER AND BETTER WRITTEN THAN THOSE IN TURBOTAX/MACINTAX SECOND IT INCLUDES THE 1040PC FORM WHICH USERS OF CHIPSOFT'S PROGRAMS MUST ORDER SEPARATELY THIRD IT COSTS LESS 37 TO 40 AT DISCOUNT COMPARED WITH 49 FOR TURBOTAX FINALLY I FOUND IT MUCH EASIER TO GET HELP FROM MECA OVER THE PHONE THAN FROM CHIPSOFT OVER THE COURSE OF ONE DAY EARLIER THIS WEEK I MADE SIX CALLS TO CHIPSOFT AND GOT NOTHING BUT A BUSY SIGNAL I GOT THROUGH TO MECA ON THE THIRD TRY AND EACH OF MY THREE QUESTIONS WAS ANSWERED CORRECTLY AND POLITELY 9303110083 930311 SECOND SUSPECT HELD IN BOMBING AT TRADE CENTER OFFICIALS HINT NIDAL AYYAD A CHEMICAL ENGINEER HELPED TO BUILD DEVICE BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEWARK NJ FEDERAL AGENTS ARRESTED NIDAL A AYYAD A KUWAITIBORN CHEMICAL ENGINEER WHO WORKS AT AN ALLIEDSIGNAL INC LABORATORY IN NEW JERSEY AND CHARGED HIM WITH AIDING THE FEB 26 BOMBING AT THE WORLD TRADE CENTER WHILE FEDERAL AGENTS WOULDN'T SAY SO EXPLICITLY THEY HINTED THAT MR AYYAD HELPED BUILD THE MASSIVE BOMB WHICH KILLED AT LEAST FIVE PEOPLE AND INJURED MORE THAN 1000 MR AYYAD AS A CHEMICAL ENGINEER CERTAINLY HAS SOME EXPERTISE THAT LENDS ITSELF TO BUILDING A BOMB JAMES ESPOSITO CHIEF OF THE FBI OFFICE IN NEWARK SAID MR AYYAD IS THE SECOND PERSON TO BE CHARGED WITH COMPLICITY IN THE BOMBING LAST WEEK THE FBI ARRESTED MOHAMMED SALAMEH A 25YEAROLD JORDANIAN OF PALESTINIAN DESCENT IN JERSEY CITY NJ MR SALAMEH HAD RENTED A FORD VAN FROM A RYDER LEASING OUTLET IN JERSEY CITY AUTHORITIES ALLEGE THAT THE VEHICLE WAS USED TO CARRY THE BOMB INTO THE TRADE CENTER PARKING GARAGE MORE ARRESTS ARE EXPECTED OFFICIALS INDICATED THAT ABOUT HALF A DOZEN PEOPLE HAVE BEEN IMPLICATED IN THE PLOT SO FAR THE ARREST OF A SECOND MAN WITH A MIDDLE EASTERN BACKGROUND RAISES SUSPICIONS AMONG INVESTIGATORS THAT A MUSLIM FUNDAMENTALIST GROUP IS RESPONSIBLE FOR THE BOMBING BUT JAMES FOX HEAD OF THE FBI OFFICE IN NEW YORK DECLINED TO COMMENT ON THAT ISSUE AT A NEWS CONFERENCE HERE MR AYYAD ABOUT 6 FEET 3 INCHES TALL WITH DARK HAIR AND GLASSES WAS PRESENTED BEFORE A FEDERAL MAGISTRATE IN NEWARK YESTERDAY AFTERNOON MR AYYAD SPOKE ONLY ONE WORD DURING THE HEARING ASKED IF HE HAD A LAWYER HE RESPONDED NO HE AGREED TO BE REPRESENTED BY A COURTAPPOINTED ATTORNEY IN THE COMPLAINT FILED IN FEDERAL COURT HERE AND AT A NEWS CONFERENCE AFTERWARD US OFFICIALS OUTLINED MR AYYAD'S BACKGROUND AND HOW HE WAS IMPLICATED IN THE BOMBING BORN IN KUWAIT HE MIGRATED TO THE US IN 1985 GOT A CHEMICAL ENGINEERING DEGREE AT RUTGERS UNIVERSITY AND BECAME A US CITIZEN IN MARCH 1991 THAT SAME YEAR MR AYYAD NOW 25 YEARS OLD BEGAN WORKING AS A PROCESS ENGINEER AT ALLIEDSIGNAL'S DEVELOPMENT LABORATORIES NEAR MORRIS TOWNSHIP NJ THE COMPANY SAID IN A STATEMENT ALLIEDSIGNAL ADDED THAT MR AYYAD HAD A GOOD ACADEMIC RECORD AT RUTGERS AND VERY GOOD REFERENCES FROM BOTH THE UNIVERSITY AND A PREVIOUS EMPLOYER FBI SPECIAL AGENT THOMAS DONLON STATED IN THE COMPLAINT THAT WITNESSES SAW MR SALAMEH COME TO THE RYDER LEASING OFFICE WITH A SECOND MAN IN A RED GENERAL MOTORS SEDAN THAT LOOKED LIKE A RENTAL CAR THE FBI AGENT SAID NATIONAL CAR RENTAL RECORDS SHOW A RED OLDSMOBILE WAS RENTED ABOUT THE TIME OF THE BOMBING BY MR AYYAD WITH AN ADDITIONAL DRIVER LISTED AS SALAMEH THE CAR RENTAL DOCUMENTS ALSO LISTED MR AYYAD'S BUSINESS PHONE NUMBER AT ALLIEDSIGNAL MR SALAMEH LINKED TO THE TRADE CENTER BLAST BECAUSE PART OF THE VEHICLEIDENTIFICATION NUMBER ON A PIECE OF THE RENTED VAN WAS FOUND AMID THE RUBBLE WAS SEEN AT SPACE STATION STORAGE IN JERSEY CITY WHERE THE FBI SAYS BOMB MATERIALS WERE FOUND ACCORDING TO FBI AGENT DONLON A WITNESS SAID MR SALAMEH HAD MADE NUMEROUS PHONE CALLS FROM A PAY PHONE AT THE STORAGE UNIT TELEPHONE COMPANY RECORDS SHOW THAT FOUR PHONE CALLS FROM THE UNIT WERE MADE TO MR AYYAD'S TELEPHONE AT ALLIEDSIGNAL THE FBI COMPLAINT SAID THE COMPLAINT ADDED THAT WHEN FBI AGENTS SEARCHED THE STORAGE UNIT THEY FOUND HUNDREDS OF POUNDS OF UREA NITRIC ACID A CONTAINER LABELED SULFURIC ACID OTHER CHEMICALS A PYROTECHNIC FUSE AND OTHER EQUIPMENT THAT COULD BE USED TO PRODUCE A HIGH EXPLOSIVE THE INVESTIGATION ALSO HAS SHOWN THAT MR SALAMEH AND MR AYYAD HAVE A JOINT BANK ACCOUNT THOUGH OFFICIALS DECLINED TO SAY AT WHICH BANK HOW MUCH MONEY WAS IN IT OR WHERE THE FUNDS CAME FROM MR SALAMEH WHEN ARRESTED ALSO WAS CARRYING MR AYYAD'S ALLIEDSIGNAL BUSINESS CARD THE COMPLAINT SAID WHEN ASKED WHETHER SUCH EVIDENCE LINKING MR AYYAD TO THE BOMBING WAS ONLY TENUOUS OFFICIALS SAID THAT ADDITIONAL EVIDENCE NOT INCLUDED IN THE COMPLAINT HAD BEEN DISCOVERED AND WOULD COME OUT IN PROCEEDINGS THEY DECLINED TO SAY WHETHER MR AYYAD'S FINGERPRINTS HAVE BEEN FOUND ON ANY OF THE BOMBMAKING EQUIPMENT MR ESPOSITO THE FBI CHIEF IN NEWARK SAID SEVERAL OTHERS HAD ACCESS TO THE STORAGE UNIT IN JERSEY CITY THE ADDITIONAL ARRESTS EXPECTED MAY INCLUDE SOME OF THESE INDIVIDUALS A PERSON FAMILIAR WITH THE INVESTIGATION SAID AN FBI SWAT TEAM BROKE INTO MR AYYAD'S MAPLEWOOD NJ RESIDENCE AT 642 AM YESTERDAY FOLLOWED BY BOMBSNIFFING DOGS THE FBI SAID NO BOMBS WERE FOUND IF CONVICTED MR AYYAD FACES A POSSIBLE LIFE SENTENCE AND A 250000 FINE ALLIEDSIGNAL SAID IT IS SUSPENDING MR AYYAD WITHOUT PAY PENDING THE OUTCOME OF THE INVESTIGATION 9303110082 930311 MARRIOTT IN BUDAPEST VENTURE WASHINGTON MARRIOTT CORP PURCHASED THE 349ROOM DUNA INTERCONTINENTAL HOTEL IN BUDAPEST FROM THE HUNGARIAN GOVERNMENT IN A JOINT VENTURE WITH THE GIROCREDIT BANK OF AUSTRIA PRICE WASN'T DISCLOSED MARRIOTT HAS SIGNED A LONGTERM MANAGEMENT CONTRACT WITH THE JOINT VENTURE TO RENOVATE AND OPERATE THE HOTEL THE RENOVATION IS EXPECTED TO LAST ABOUT A YEAR AT WHICH TIME THE HOTEL WILL REOPEN AS THE BUDAPEST MARRIOTT LAST YEAR MARRIOTT'S LODGING PRESENCE OUTSIDE THE US ROSE SHARPLY TO 41 HOTELS 9303110081 930311 LETTERS TO THE EDITOR DON'T TAKE THE WORDS RIGHT OUT OF HIS MOUTH THAT YOUR DISTINGUISHED STAFF SHOULD SUFFER SUCH ANGST OVER THE COMPARATIVE EXCLUSION OF RONALD REAGAN FROM THE UPDATED BARTLETT'S FAMILIAR QUOTATIONS AS TO MAKE THIS GROSS SLIGHT YOUR LEAD EDITORIAL OF FEB 25 BARTLETT'S UNFAMILIAR QUOTATIONS IS AS AMUSING AS IT IS MISGUIDED HOW YOU LAMENT CAN THE GREAT COMMUNICATOR POSSIBLY BE RELEGATED TO HAVING FEWER ENTRIES THAN GEORGE BUSH AND HALF THOSE OF JIMMY CARTER IS NOTHING SACRED ANYONE WHO ARGUES THAT RONALD REAGAN WAS THE GREAT COMMUNICATOR BECAUSE OF HIS WEALTH OF ORIGINAL IDEAS HIS RAPIER INTELLECT AND HIS ABILITY TO COIN A PHRASE HAS PUTTING THINGS CHARITABLY GOT IT WRONG MR REAGAN'S GREAT COMMUNICATIVE SKILL WAS HIS ABILITY TO TAKE SOMEONE ELSE'S WORDS AND THOUGHTS OFF A TELEPROMPTER AND IN THE READING MAKE THEM HIS WITH THE POLISH AND PANACHE OF A SEASONED PERFORMER IN THAT RESPECT HE SURELY WAS THE GREATEST COMMUNICATOR EVER TO BE PRESIDENT IN TERMS OF COMMUNICATING HIS OWN IDEAS AND THOUGHTS MR REAGAN IS ON SHAKIER GROUND AND ISN'T THAT WHAT BARTLETT'S SHOULD BE ABOUT PUBLISHING MEMORABLE PHRASES AND IDEAS BY THOSE WHO ACTUALLY CAME UP WITH THEM I DO AGREE WITH YOU THAT THE WONDERFUL WORDS SPOKEN AT THE BERLIN WALL MERIT A PLACE IN THE VOLUME HOWEVER THOUGH THE GREAT COMMUNICATOR READ AND SPOKE THEM FOR THE ATTRIBUTION TO BE PROPER THE EDITOR OF BARTLETT'S WOULD HAVE TO ASCRIBE THEM TO ANONYMOUS 9303110080 930311 SENATE PANEL APPROVES RENO AS ATTORNEY GENERAL WASHINGTON THE SENATE JUDICIARY COMMITTEE UNANIMOUSLY APPROVED JANET RENO AS ATTORNEY GENERAL AFTER TWO DAYS OF HEARINGS THAT ONE MEMBER CALLED A LOVEFEST THE FULL SENATE IS EXPECTED TO VOTE TODAY TO MAKE THE FORMER DADE COUNTY FLA PROSECUTOR THE FIRST WOMAN TO HOLD THE CABINET POST THE SENATORS QUESTIONED MS RENO LIGHTLY ON A RANGE OF ISSUES INCLUDING THE DEATH PENALTY JUVENILE JUSTICE NATIVE AMERICAN RIGHTS IMMIGRATION DRUG ABUSE AND GUN CONTROL SHE WAS CAREFUL TO STAY CLOSE TO PRESIDENT CLINTON'S POSITIONS AND PROMISED TO WORK WITH SENATORS ON THEIR INDIVIDUAL CONCERNS HER CLOSEST QUESTIONING CAME FROM SEN CHARLES GRASSLEY R IOWA WHO PRESSED HER ABOUT THE ACTING ATTORNEY GENERAL'S DECISION TO SEEK A NEW JURY IN THE CORRUPTION TRIAL OF REP HAROLD FORD D TENN BEFORE YESTERDAY'S VOTE SEN GRASSLEY PRAISED MS RENO AS ONE WHO WOULD STRIVE TO KEEP THE ATTORNEY GENERAL'S OFFICE INDEPENDENT 9303110078 930311 CLINTON SETS CONFERENCE ON CONFLICT OF LOGGING PROTECTION OF FORESTS WASHINGTON PRESIDENT CLINTON FULFILLING A CAMPAIGN PLEDGE SCHEDULED A FOREST CONFERENCE ON THE CONFLICT BETWEEN LOGGING ON FEDERAL LANDS AND THE PROTECTION OF ANCIENT FORESTS ACKNOWLEDGING THE BITTER DIFFERENCES BETWEEN ENVIRONMENTAL GROUPS AND THE TIMBER INDUSTRY CLINTON ADMINISTRATION AND CONGRESSIONAL OFFICIALS PLAYED DOWN THE LIKELIHOOD THAT ANY SOLUTIONS OR CLEAR POLICY PRESCRIPTIONS WOULD EMERGE FROM THE APRIL 2 MEETING IN PORTLAND ORE INSTEAD THEY HOPE TO HEAR FROM ALL SIDES IN THE DISPUTE AND RETURN TO WASHINGTON TO BEGIN CRAFTING A COMPREHENSIVE LONGTERM POLICY DESIGNED TO IMPROVE FOREST MANAGEMENT AND HELP AFFECTED WORKERS AND COMMUNITIES LOGGING ON NATIONAL FORESTS IN THE PACIFIC NORTHWEST HAS PLUMMETED SINCE THE FISH AND WILDLIFE SERVICE DECLARED THE SPOTTED OWL A THREATENED SPECIES IN JUNE 1990 IT IS TIME TO BREAK THE GRIDLOCK THAT HAS BLOCKED ACTION AND BRING ALL SIDES TOGETHER TO CRAFT A BALANCED APPROACH TO THE ECONOMIC AND ENVIRONMENTAL CHALLENGES WE FACE MR CLINTON SAID MR CLINTON WILL ATTEND THE MEETING EN ROUTE TO HIS SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN IN VANCOUVER BRITISH COLUMBIA VICE PRESIDENT ALBERT GORE WILL ATTEND THE FORESTRY MEETING ALONG WITH THE SECRETARIES OF INTERIOR AGRICULTURE AND LABOR AND THE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY 9303110077 930311 BUSINESS BRIEF TWO DRUG COMPANIES ARE SET FOR A MERGER THROUGH STOCK SWAP NEW YORK BIOTECHNOLOGY GENERAL CORP AND GYNEX PHARMACEUTICALS INC TWO DEVELOPMENTSTAGE DRUG COMPANIES FOCUSING ON HORMONEBASED TREATMENTS SAID THEY WILL MERGE IN A STOCK SWAP VALUED AT A MINIMUM OF 48 MILLION UNDER A DEFINITIVE AGREEMENT BIOTECHNOLOGY WILL ACQUIRE GYNEX BY EXCHANGING 061 SHARE FOR EACH GYNEX SHARE OUTSTANDING GYNEX HAS ABOUT 131 MILLION SHARES OUTSTANDING BASED ON THAT BIOTECHNOLOGY WOULD ISSUE EIGHT MILLION NEW SHARES TO GYNEX SHAREHOLDERS AT BIOTECHNOLOGY'S CURRENT TRADING PRICE OF 6 A SHARE THAT VALUES THE MERGER AT ABOUT 48 MILLION BIOTECHNOLOGY HOWEVER SAID IT COULD ISSUE AS MANY AS 12 MILLION SHARES FOR GYNEX GIVING THE TRANSACTION A POTENTIAL HIGH VALUE OF ABOUT 72 MILLION BIOTECHNOLOGY WILL HAVE ABOUT 34 MILLION SHARES OUTSTANDING AFTER THE MERGER UP FROM ABOUT 26 MILLION CURRENTLY BIOTECHNOLOGY WILL OBTAIN ALL OF GYNEX'S PATENTS AND LICENSING RIGHTS AND WILL MARKET GYNEX PARTNERS ALONG WITH ITS LICENSING PARTNERS GYNEX IS BASED IN VERNON HILLS ILL BIOTECHNOLOGY GENERAL HAS HEADQUARTERS OFFICES IN NEW YORK AND ITS RESEARCH AND MANUFACTURING FACILITIES ARE IN REHOVOT ISRAEL THE MERGER IS SUBJECT TO APPROVAL BY BOTH COMPANIES' SHAREHOLDERS AND TO REGULATORY APPROVALS AND OTHER CONDITIONS IT IS EXPECTED TO BE COMPLETED BY EARLY SUMMER THE COMPANIES HOPE TO CAPITALIZE ON EACH OTHER'S STRENGTHS BIOTECHNOLOGY'S IN INJECTABLE HUMAN GROWTH HORMONES AND GYNEX'S IN DEVELOPING ORALLY ADMINISTERED HORMONES 9303110076 930311 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT MICHAEL T SMITH WAS NAMED VICE CHAIRMAN AND CHARLES H NOSKI SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF GM HUGHES ELECTRONICS CORP LOS ANGELES THESE ARE NEW POSTS AT THIS GM UNIT PROVIDING AUTOMOTIVE DEFENSE AND TELECOMMUNICATIONS SYSTEMS ALSO RICHARD D BRANDES ANTHONY J IORILLO W SCOTT WALKER JOHN C WEAVER AND TED G WESTERMAN WERE NAMED SENIOR VICE PRESIDENTS AND W ALLEN REED ARTHUR N CHESTER AND MILTON E RADANT WERE NAMED VICE PRESIDENTS THE EXECUTIVES ALL CURRENTLY HOLD THE SAME TITLES AT HUGHES AIRCRAFT CO A GM HUGHES SUBSIDIARY 9303110075 930311 WEDNESDAY'S MARKETS STOCKS EDGE UP AND BONDS FALL DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES AGAIN EKED OUT SMALL GAINS EXTENDING THE MARKET'S RECORDSETTING WEEK BONDS SAGGED A BIT AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 622 POINTS TO A RECORD 347834 STANDARD & POOR'S 500STOCK INDEX GAINED 193 TO A RECORD 45633 AND THE NASDAQ COMPOSITE INDEX CLIMBED 391 TO 69287 STOCK PRICES WERE DOWN MOST OF THE DAY PRESSURED BY SLUMPING BOND PRICES A LATE SURGE AS BONDS RECOVERED LEFT THE INDEXES HIGHER AT THE CLOSING BELL BANK AND DRUG STOCKS WERE BIG GAINERS ECONOMICALLY SENSITIVE STOCKS WHICH HAVE RISEN RECENTLY ON OPTIMISM ABOUT THE ECONOMY SUSTAINED PROFITTAKING DECLINES YESTERDAY THE DOW JONES TRANSPORTATION AVERAGE MADE UP OF ECONOMICALLY SENSITIVE TRUCKERS AIRLINES AND RAILROADS SLUMPED 987 POINTS TO 156202 BUT IT IS STILL UP 54 SINCE FEB 23 BOND PRICES SANK INITIALLY IN RESPONSE TO COMMENTS BY THE NATION'S 12 FEDERAL RESERVE DISTRICT BANK PRESIDENTS BEFORE THE SENATE BANKING COMMITTEE THEY WERE MOSTLY UPBEAT ABOUT THE ECONOMIC RECOVERY SUGGESTING NO FURTHER LOWERING OF INTEREST RATES IS LIKELY THE THRUST IS THAT THE FED HAS DONE ENOUGH NO MORE EASING IS REQUIRED OR DESIRABLE SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THE EXCITING PART OF THE BOND RALLY IS BEHIND US HE SAID THOUGH THE LONGBOND YIELD MAY GO DOWN TO NEW LOWS HOWEVER HE ADDED IF INVESTORS THINK BONDS HAVE HAD ALL THE SUPPORT THEY'RE GOING TO GET THEN THAT'S GOOD FOR STOCKS IN THE NEAR TERM IF THEY'RE SELLING BONDS THEY'RE PROBABLY GOING TO BUY STOCKS THE LATEST SURVEY OF INVESTMENT ADVISERS BY INVESTORS INTELLIGENCE SERVICE SHOWS GROWING BULLISHNESS ABOUT THE STOCK MARKET SUCH SENTIMENT INDICATORS ARE OFTEN USED AS CONTRARY SIGNALS OF THE MARKET'S DIRECTION THE PERCENTAGE OF BULLISH ADVISERS IN THE SURVEY ROSE TO 47 FROM 429 A WEEK EARLIER THE PERCENTAGE OF BEARS SHRANK TO 30 FROM 33 THE DIRECTION OF THE NUMBERS IS A CONCERN MR CANELO SAID BUT THEY'RE NOT YET AT A LEVEL THAT SIGNALS A MARKET TOPWHICH HE PEGGED AT 55 BULLISH WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 9840 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 255190000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1031 ISSUES ROSE AND 852 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16663 MARKS AND 11805 YEN COMPARED WITH 16670 MARKS AND 11775 YEN TUESDAY 9303110074 930311 LETTERS TO THE EDITOR MEDICARE PATIENTS DENIED A BASIC RIGHT THE MEDICAL SOCIETY OF NEW JERSEY WHICH REPRESENTS 9500 PHYSICIANS APPLAUDS YOUR FEB 19 EDITORIAL THE MEDICARE PLANTATION THE FACT THAT DR LOIS COPELAND A SOCIETY MEMBER DID NOT RECEIVE CLEARCUT ANSWERS FROM MEDICARE REGARDING PRIVATE CONTRACTING UNDERSCORES THE NEED TO ADDRESS A FUNDAMENTAL ISSUE THE PATIENT'S FREEDOM OF CHOICE CURRENTLY INCREASED GOVERNMENT MANDATES ARE RESTRICTING MEDICARE BENEFITS THUS PROMPTING AN INCREASING NUMBER OF PATIENTS TO TRY TO OPT OUT OF MEDICARE AND PAY THE DIFFERENCE OUT OF THEIR OWN POCKETS WHY SHOULDN'T THEY BE ALLOWED AS AN EXAMPLE CURRENT MEDICARE LAW RESTRICTS NURSING HOME VISITS BY PHYSICIANS TO ONE A MONTH IF A MEDICARE RECIPIENT HAS A LEGITIMATE NEED FOR ADDITIONAL VISITS PAID PRIVATELY OUTSIDE OF MEDICARE THIS SHOULD BE THE PATIENT'S PREROGATIVE WHO IS THE GOVERNMENT OR ANYONE FOR THAT MATTER TO DENY AN INDIVIDUAL THE RIGHT TO RECEIVE CARE PAID FOR BY HIS OWN MONEY AS THE US MOVES CLOSER TO AN ERA WHERE HEALTH MAINTENANCE ORGANIZATIONS WILL DOMINATE THE HEALTH CARE DELIVERY SYSTEM WE MUST BE CAREFUL NOT TO TAKE AWAY PEOPLE'S RIGHT TO SPEND THEIR OWN MONEY AND CHOOSE THEIR PHYSICIAN HOSPITAL OR LABORATORY WE RECOMMEND A CONGRESSIONAL AMENDMENT TO THE SOCIETY SECURITY ACT TO ALLOW PATIENTS TO CONTRACT FOR HEALTH CARE OUTSIDE THE MEDICARE SYSTEM 9303110073 930311 TECHNOLOGY & HEALTH AT&T DROPS SCREEN TELEPHONE BANKING VENTURE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO AND HUNTINGTON BANCSHARES INC PULLED THE PLUG ON THEIR PLODDING EFFORT TO SELL A PHONE WITH A SCREEN FOR HOME BANKING THE COMPANIES HAD A TWOYEAR JUMP ON POTENTIAL COMPETITORS WHEN THEY ANNOUNCED THEIR PLANS ABOUT THREE YEARS AGO BUT NEVER BROUGHT A PHONE OR SERVICE TO MARKET THEIR MARKETING EDGE WAS BLUNTED FURTHER AS FORMIDABLE PLAYERS SUCH AS NYNEX CORP AND PHILIPS ELECTRONICS NV EUROPE'S LARGEST ELECTRONICS COMPANY RECENTLY DISCLOSED PLANS TO SELL THEIR OWN SCREEN PHONES AT&T AND HUNTINGTON WHICH EACH SPENT MORE THAN 10 MILLION ON THE PROJECT SAID THEY WERE DROPPING PLANS TO MARKET A PROPRIETARY PHONE THAT WOULD ONLY WORK ON THEIR SYSTEM INSTEAD AT&T NEW YORK AND HUNTINGTON COLUMBUS OHIO SAID THEY WOULD SEPARATELY PURSUE AN OPEN SERVICE IN WHICH ANY SCREEN PHONE CAN BE USED FOR TRANSACTIONS FROM THE HOME OR OFFICE AS PART OF THE PLAN AT&T SAID IT WOULD NOT BUILD ITS SMART PHONE 2100 AND WOULD INSTEAD COME OUT WITH A LINE OF SMART PHONES NEXT YEAR THAT CAN BE USED BY A CALLER TO GAIN ACCESS TO ANY TRANSACTION SERVICE WE'RE GOING TO COMPETE BUT WE'LL ALSO COOPERATE ON FUTURE NETWORKING STANDARDS SAID WILLIAM M RANDLE SENIOR VICE PRESIDENT OF MARKETING AND STRATEGIC PLANNING AT HUNTINGTON NATIONAL BANK ADDED NEIL VASANT GENERAL MANAGER OF AT&T'S SMART PHONE GROUP INTEREST IN THIS TECHNOLOGY IS HEATING UP AND THIS CAUSED US TO LOOK AT THE PROJECT TO ACCELERATE THE MARKET IN LATE JANUARY WHEN NYNEX AND PHILIPS ANNOUNCED THEIR VENTURE MR VASANT SAID THE PROJECT WAS STILL PRETTY MUCH ON TRACK WE'LL COME OUT SWINGING BY THE SECOND HALF BUT ANALYSTS SAID THE FORMER PARTNERS WERE INCREASINGLY SWINGING AT EACH OTHER MR RANDLE ACKNOWLEDGED YESTERDAY THAT WE'RE BOTH DISAPPOINTED THAT THE 2100 DIDN'T COME TO MARKET SOONER HUNTINGTON WHICH HAD BEEN WORKING WITH AT&T TO DEVELOP SOFTWARE AND TRANSMISSION TECHNIQUES FOR DELIVERING THE SERVICE WAS EAGER TO HIT THE MARKET BEFORE OTHER BANKS BUT BECAUSE OF INTERNAL CONFLICTS SMART PHONE WAS PASSED FROM ONE UNIT TO ANOTHER AT&T COULDN'T DELIVER ITS SMART PHONE 2100S AND SERVICE PLAN ON TIME AT&T CONFIRMED THAT THE PHONE'S ORIGINAL DEVELOPER MICHAEL GRISHAM RECENTLY QUIT THE COMPANY MEANWHILE OTHER MANUFACTURERS WERE ANNOUNCING PLANS TO COME OUT WITH LOWPRICED 200 PHONES TO BEAT AT&T'S 600 MODEL NOTED GENE DEROSE AN ANALYST AT JUPITER COMMUNICATIONS A NEW YORK RESEARCH FIRM AT&T WITH ITS HUGE CONSUMER PHONE BUSINESS CAN'T AFFORD TO BE LEFT BEHIND BY RIVALS LIKE PHILIPS 9303110072 930311 LETTERS TO THE EDITOR AMERICAN OATH OF FEALTY FALLS ON DRY PARCHMENT YOUR FEB 12 PAGEONE ARTICLE UNEASY REALM ROYAL SCANDALS SPIN BRITONS INTO GLOOM AND AN IDENTITY CRISIS STATES BRITONS ALSO FEEL DAUNTED BY THE PROSPECT OF CRAFTING A REPUBLICAN STATE THE COUNTRY HAS NEITHER A BILL OF RIGHTS OR A SYSTEM OF CHECKS AND BALANCES IN ADDITION TO THE UNGRAMMATICAL NEITHER OR YOU MIGHT TAKE A LOOK AT ENGLISH HISTORY FROM 1649 TO 1660 ENGLAND FLOURISHED WITHOUT A KING UNDER A SYSTEM OF A PROTECTOR PLUS A HOUSE OF COMMONS THE HOUSE OF LORDS BEING ABOLISHED AS USELESS AND DANGEROUS AND THERE WERE PLENTY OF ENGLISHMEN WILLING TO CRAFT WRITTEN INSTRUMENTS OF GOVERNMENT IN FACT A SYSTEM OF CHECKS AND BALANCES IS NEITHER NEW IT FLOURISHED FOR 500 YEARS IN ANCIENT ROME NOR PARTICULARLY DESIRABLE IF ALL THE CHECKS ARE APPLIED THE SYSTEM COMES TO A STANDSTILL AND IT IS WELL WITHIN THE POWER OF EVEN A LIGHTWEIGHT POLITICIAN TO DEVISE IF THE THRONE VANISHED THE REAL VACANCY WOULD BE THE PSYCHOLOGICAL LOSS OF A PERSONAL FATHER/MOTHER FIGURE COMPARE THE WORDING OF ENGLISH AND AMERICAN STATUTES ENGLISH WHOEVER SHALL COMMIT TREASON AGAINST OUR SOVEREIGN LORD THE KING AMERICAN TREASON AGAINST THE UNITED STATES SHALL CONSIST HOW DULL AND INANIMATE THE LATTER SOUNDS CAN YOU REALLY SWEAR FEALTY TO A HUNK OF PARCHMENT IN THE ARCHIVES 9303110071 930311 INTERNATIONAL RUSSIA AEROSPACE INDUSTRY AEROSPATIALE PLAN ALLIANCE MOSCOW RUSSIA'S AEROSPACE INDUSTRY AND AEROSPATIALE OF FRANCE SIGNED AN AMBITIOUS MEMORANDUM ON COOPERATION IN AIR AND SPACE ENGINEERING THE INTERFAX NEWS AGENCY REPORTED TOGETHER THEY AIM TO DEVELOP NEW CIVILIAN ROCKETS AND AIRCRAFT POSSIBLY INCLUDING A SUPERSONIC JET OFFICIALS SAID COMPANY DIRECTORS ALSO HINTED AT THE POSSIBILITY OF BUILDING A NEW JUMBO JET SIMILAR TO ONE DISCUSSED BY BOEING CO AND THE EUROPEAN CONSORTIUM AIRBUS INDUSTRIE THAT COULD CARRY AS MANY AS 700 PASSENGERS BUT IT'S NOT CLEAR WHERE THE MONEY WOULD COME FROM INTERFAX DIDN'T SAY WHETHER THE PACT CALLED FOR THE STATERUN FRENCH COMPANY TO INVEST IN THE RUSSIAN OPERATIONS WHICH ARE STRUGGLING INDEED THE AEROSPACE INDUSTRY WORLDWIDE IS SUFFERING THROUGH LEAN TIMES THE MEMORANDUM WAS SIGNED WITH RUSSIA'S COMMITTEE FOR DEFENSE INDUSTRIES WHICH OVERSEES MILITARYRUN INDUSTRIES THAT BUILD EVERYTHING FROM HELICOPTERS TO CIVILIAN JETS AND SPACESHIPS ANATOLY BRATUKHIN ONE OF THE RUSSIAN OFFICIALS HIGHLIGHTED PLANS FOR A NEW MEDIUMRANGE PASSENGER PLANE TO REPLACE RUSSIA'S AGING FLEET OF TU134 JETS THE WORKHORSES OF RUSSIA'S CIVILIAN AIRLINE THE MEMORANDUM SAID THE TWO SIDES WILL COOPERATE ON BUILDING A BOOSTER ROCKET FOR THE ARIANE5 ROCKET 9303110070 930311 MARKETING & MEDIA ROLLING STONE'S WENNER TARGETS A NEW GENERATION NEW YORK THE CREATOR OF ROLLING STONE THE MAGAZINE THAT EPITOMIZED DISTRUST OF PEOPLE OVER 30 WILL LAUNCH A MAGAZINE FOR PARENTS WITH YOUNG KIDS JANN S WENNER CHAIRMAN OF STRAIGHT ARROW PUBLISHERS INC SAYS FAMILY LIFE WILL TARGET PARENTS OF KIDS AGES THREE TO 12 KIDS WHO CAN WALK AND TALK ROLLING STONE STARTED IN 1967 AS A SYMPATHETIC OBSERVER FOR A GENERATION GETTING ITS KICKS FROM BURNING THE FLAG SMOKING DOPE AND FREE LOVE MR WENNER HIMSELF BASKED IN THE ETHOS OF THE TIMES BUILDING A REPUTATION AS AN UNREPENTANT CLUB CRAWLER BUT THOSE DAYS ARE GONE AND HE FIGURES THEY MAKE HIM ALL THE MORE QUALIFIED TO INSTRUCT NEW PARENTS ON TEACHING KIDS ABOUT PATRIOTISM DRUG ABUSE AND SAFE SEX HE HAS THREE YOUNG SONS OF HIS OWN MR JENNER HAS TAPPED NANCY EVANS THE FORMER PRESIDENT OF BERTELSMANN AG'S DOUBLEDAY PUBLISHING UNIT WHO CAME TO HIM WITH THE IDEA TO BE AS EDITORINCHIEF SHE LOOKS FOR A NEW AGE BENT THAT WILL TARGET MOM AND DAD WITH FEATURES ON VOLUNTEERING IMPROVING EDUCATION AND THE FINER POINTS OF GOOD MANNERS 9303110069 930311 TECHNOLOGY & HEALTH STUDY DEBUNKS THEORY LINKING DRUG USE AIDS LONDON REUTER A CALIFORNIA RESEARCH GROUP DEBUNKED A THEORY PUT FORWARD BY AN AMERICAN BIOLOGIST THAT AIDS IS CAUSED BY DRUG USE MICHAEL ASCHER OF THE CALIFORNIA DEPARTMENT OF HEALTH AND HUMAN SERVICES IN BERKELEY AND COLLEAGUES BASED THEIR CONCLUSION ON A STUDY OF MORE THAN 1000 MEN TO BE PUBLISHED IN THE BRITISH SCIENTIFIC JOURNAL NATURE THE DEBATE BEGAN IN 1987 WHEN PETER DUESBERG A PROFESSOR OF MOLECULAR BIOLOGY AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAID THAT DRUG USE LAY AT THE ROOT OF THE DISEASE HIS THEORY APPEARING IN ALTERNATIVE PUBLICATIONS CHALLENGED THE ESTABLISHED VIEW THAT THE HUMAN IMMUNODEFICIENCY VIRUS CAUSES AIDS THE NEW RESEARCH CONCLUDES THAT THERE IS NO EVIDENCE OF A DIRECT DRUG EFFECT IN CAUSING AIDS AMONG INTRAVENOUS DRUG USERS THE STUDY LOOKED AT 1034 SINGLE MEN AGED 25 TO 54 AT THE TIME THEY ENTERED A SAN FRANCISCO MEN'S HEALTH STUDY IN 1984 9303110068 930311 PLANS FOR OLYMPIC STADIUM IN ATLANTA ARE APPROVED ATLANTA ORGANIZERS HERE OF THE 1996 SUMMER OLYMPICS WON A MAJOR VICTORY AS GOVERNMENT OFFICIALS APPROVED PLANS FOR THE GAMES' 207 MILLION OLYMPIC STADIUM THE FACILITY HAS BEEN AT THE HEART OF A LENGTHY DEBATE AMONG ELECTED OFFICIALS NEIGHBORHOOD GROUPS OLYMPIC ORGANIZERS AND TURNER BROADCASTING SYSTEM INC OVER THE WISDOM OF BUILDING THE STADIUM NEXT TO THE HOME OF THE ATLANTA BRAVES BASEBALL TEAM WHICH IS OWNED BY TURNER UNDER PLANS FIRST DEVELOPED IN THE LATE 1980S THE BRAVES WOULD MOVE INTO A MODIFIED VERSION OF THE OLYMPIC STADIUM ONCE THE GAMES ARE OVER AND THEIR EXISTING PARK WOULD BE TORN DOWN LAST WEEK HOWEVER WITH SITE PREPARATION FOR THE NEW STADIUM SCHEDULED TO START IN LATE APRIL OR EARLY MAY A GROUP OF COUNTY COMMISSIONERS MOVED TO BLOCK THE PROJECT ARGUING THAT TURNER WASN'T SHOULDERING ENOUGH OF THE FINANCIAL BURDEN TO MAINTAIN THE STADIUM ONCE THE BRAVES TAKE POSSESSION YESTERDAY WITH NEGOTIATIONS CONTINUING TO THE LAST POSSIBLE MOMENT FULTON COUNTY COMMISSIONERS APPROVED THE PLANS IN A 61 VOTE TURNER ACCORDING TO GOVERNMENT AND OLYMPIC OFFICIALS HAD AGREED AMONG OTHER THINGS TO CAP TAXPAYER LIABILITY FOR FUTURE MAINTENANCE OF THE STADIUM AT 50 MILLION EARLIER ESTIMATES HAD PUT THE COST TO ATLANTA RESIDENTS AT MORE THAN 100 MILLION THE BRAVES ALSO AGREED TO LIMIT THE NUMBER OF PARKING SPACES AT THE NEW FACILITY TO 8900 FROM 10000 9303110067 930311 THE UN'S FAILURE IN CAMBODIA BY NAYAN CHANDA PHNOM PENH THE MOST AMBITIOUS UNITED NATIONS UNDERTAKING TO DATE HAS RUN AGROUND IN CAMBODIA THE UN GOALS OF BRINGING AN END TO THE CIVIL WAR AND ESTABLISHING A POPULARLY ELECTED GOVERNMENT LOOK DOOMED TO FAILURE FOR MOST OF THE WORLD THE CAMBODIAN PROBLEM WAS SOLVED ON OCT 23 1991 WHEN THE UN PEACE ACCORDS WERE SIGNED BY CAMBODIA'S FOUR WARRING FACTIONS THE AGREEMENTS PROVIDED FOR THE WITHDRAWAL OF FOREIGN READ VIETNAMESE FORCES FROM THE COUNTRY A CEASEFIRE AND DISARMING OF 70 OF THE FACTIONS' TROOPS REPATRIATION OF REFUGEES AND A NATIONWIDE ELECTION WITH THE EXCEPTION OF REFUGEE REPATRIATION ALL THIS IS NOW UNRAVELING THE KHMER ROUGE HAS REFUSED TO DISARM WHICH IN TURN HAS FORCED THE UN TO STOP DISARMING OTHER FACTIONS THE CEASEFIRE IS VIOLATED BY BOTH SIDES DAILY THE KHMER ROUGE ALSO REFUSES TO PARTICIPATE IN THE POLLS THE UN NEVERTHELESS PLANS TO GO AHEAD WITH THE ELECTION IN MAY ALL CAMBODIAN FACTIONS NOW CONDEMN THE UN FOR FAILING TO MEET ITS OBLIGATIONS NOT ONLY HAS THE UN FAILED TO DISARM THE FACTIONS OR GAIN ACCESS TO THE KHMER ROUGE ZONES IT HAS ALSO FAILED TO TAKE CONTROL OF THE KEY MINISTRIES OF THE PHNOM PENH GOVERNMENT AND ENSURE A PEACEFUL ATMOSPHERE FOR THE ELECTION THE ESTIMATED 300000 THAT UN EMPLOYEES SPEND EACH DAY MEANWHILE HAS FUELED INFLATION ENCOURAGED A MASSIVE INFLUX OF ILLEGAL VIETNAMESE IMMIGRANTS SEEKING EMPLOYMENT AND MADE PROSTITUTION INTO A LARGE NATIONAL INDUSTRY IN SHORT THE 28 BILLION UN OPERATION INVOLVING 22000 CIVILIAN AND MILITARY PERSONNEL APPEARS TO BE A JUGGERNAUT CRUSHING CAMBODIA UNDER ITS WEIGHT RATHER THAN BULLDOZING AWAY OBSTACLES TO PEACE THE FUNDAMENTAL REASON FOR THE UN FAILURE HOWEVER IS NOT ITS INEFFICIENCY BUT ITS FAULTY MANDATE THE UN WAS GIVEN THE IMPOSSIBLE TASK OF BRINGING PEACE TO A COUNTRY WHERE THE CONTESTANTS ARE NOT DESPITE THEIR STATEMENTS TO THE CONTRARY READY FOR PEACE THE FAILURE OF THE PEACE PLAN REFLECTS THE WORLD'S FAILURE TO COMPREHEND CAMBODIA'S RECENT HISTORY THE INTERNATIONAL COMMUNITY IGNORED CAMBODIA WHEN ITS CITIZENS WERE BEING SLAUGHTERED BY THE KHMER ROUGE IN THE MID1970S IT WAS ONLY WHEN VIETNAM INVADED IN 1978 AND TOPPLED POL POT'S REVOLUTIONARIES THAT THE WORLD FINALLY TOOK NOTICE FOR THE WEST AND FOR CHINA THE CAMBODIA CONFLICT WAS CAST IN COLD WAR TERMS A SIMPLE CASE OF AGGRESSION BY AN EXPANSIONIST SOVIET PROXY FOR THE NEXT DECADE AN INTERNATIONAL COALITION LED BY THE US CHINA AND THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS BACKED THE KHMER ROUGE AND ITS NONCOMMUNIST ALLIES AGAINST THE VIETNAMESESUPPORTED GOVERNMENT IN PHNOM PENH THE KHMER ROUGE ATROCITIES WERE LOST AMID SUCH GEOSTRATEGIC CONSIDERATIONS THE RESULTS OF SUCH A POLICY ARE TODAY CLEAR THE PROTRACTED CONFLICT NOT ONLY FAILED TO BRING ABOUT A COLLAPSE OF THE VIETNAMINSTALLED REGIME IT HELPED REVIVE AND STRENGTHEN THE KHMER ROUGE AFTER ITS VIRTUAL DISINTEGRATION IN 1979 THE SAD REALITY OF THE PEACE PLAN IS THAT THE TWO PRINCIPAL SIDES THE KHMER ROUGE AND THE HANOIBACKED GOVERNMENT IN PHNOM PENH VIEW IT AS NOTHING MORE THAN A TRUCE IMPOSED ON THEM BY THE INTERNATIONAL COMMUNITY BOTH HAVE SOUGHT TO SUBVERT OR EXPLOIT THE TRUCE TO ACHIEVE ULTIMATE VICTORY DESPITE ITS TALK OF RECONCILIATION THE PHNOM PENH GOVERNMENT SEES THE EXISTENCE OF THE KHMER ROUGE AS A MORTAL THREAT TO ITS EXISTENCE SINCE SIGNING THE PEACE PLAN IT HAS TRIED TO ISOLATE THE KHMER ROUGE BY FORMING A COALITION WITH PRINCE SIHANOUK BUT COOPTING THE POPULAR PRINCE HAS NOT WORKED OUT AFRAID OF LOSING POWER IN A FREE ELECTION THE PHNOM PENH GOVERNMENT HAS STARTED A CAMPAIGN OF ASSASSINATION AND INTIMIDATION AGAINST ITS POLITICAL OPPONENTS IN SIHANOUK'S PARTY THUS ENSURING THAT EVEN THE PARTIAL ELECTION IF IT OCCURS WON'T BE FREE THE KHMER ROUGE IN TURN SEE IN THE PEACE PLAN AN OPPORTUNITY TO DISMANTLE THE HANOIBACKED REGIME LEGITIMIZE ITS OWN ROLE AND THEN TAKE ADVANTAGE OF THE RESULTING CHAOS TO EXPAND ITS PRESENCE AND ULTIMATELY RECAPTURE POWER KHMER ROUGE DEFECTORS HAVE EXPOSED DOCUMENTS THAT SHOW THAT BARELY THREE MONTHS AFTER SIGNING THE PARIS ACCORDS POL POT ORDERED HIS TROOPS TO INFILTRATE AND BUILD BASES IN AREAS HELD BY PHNOM PENH AS A RESULT OF THE PEACE PLAN THE KHMER ROUGE HAS GAINED POLITICAL LEGITIMACY WITHOUT IN ANY WAY GIVING UP ITS MILITARY POWER EVEN IF THE UN SUCCEEDS IN HOLDING SOME FORM OF ELECTION IN MAY AS PLANNED IT WOULD IN NO WAY SIGNAL THE DAWN OF PEACE OR CONFER LEGITIMACY ON THE NEW GOVERNMENT TODAY NEARLY 18 MONTHS AFTER THE SIGNING OF THE PARIS ACCORDS PEACE IN CAMBODIA SEEMS FARTHER AWAY THAN EVER MR CHANDA DEPUTY EDITOR OF THE FAR EASTERN ECONOMIC REVIEW A DOW JONESOWNED WEEKLY HAS BEEN COVERING CAMBODIA SINCE 1971 9303110066 930311 REVIEW & OUTLOOK EDITORIAL HILLARY'S HEALTH PLANNERS IT'S BEEN A COMPELLING DRAMA HILLARY RODHAM CLINTON AND HER HEALTH TASK FORCE HAVE BARRICADED THEMSELVES IN THE OLD WHITE HOUSE WAR ROOM AND ARE FEVERISHLY DRAWING UP SCHEMES TO REVAMP THE HEALTH INDUSTRY BILL HAS GIVEN HER UNTIL MAY NO TIME FOR STROKING DOCTORS GET LOST THEY WERE TOLD OR CONSULTING WITH THE PUBLIC THIS IS AN EMERGENCY THE CLOCK IS TICKING YESTERDAY A FEDERAL JUDGE BLOCKED HILLARY'S TASK FORCE FROM SOME MEETINGS UNTIL IT COMPLIES WITH THE FEDERAL ADVISORY COMMITTEE ACT JUDGE ROYCE LAMBERTH MAY HAVE DONE THE CLINTONS AND THE REST OF US A LARGE FAVOR PUBLIC ATTITUDES AT THIS POINT ARE STILL CONDITIONED MORE BY HEAT THAN LIGHT AND COOKING UP SOMETHING SO BIG AND IMPORTANT IN THE DARK LIKELY WOULD HAVE LED TO A NASTY SURPRISE AND RECRIMINATIONS MANY AMERICANS SUSPECT VAGUELY THAT GREEDY DOCTORS RUNAWAY TECHNOLOGY AND PRICEGOUGING DRUG MANUFACTURERS ARE RESPONSIBLE FOR HIGH MEDICAL COSTS NOBODY HAS TOLD THEM THAT THEY HAVE BECOME PART OF THE PROBLEM TOO THE ACCOMPANYING CHART SUGGESTS HOW AND WHEN HEALTH SPENDING CAN RUN OFF THE TRACKS THE MORE A PERSON'S HEALTH COSTS ARE SUBSIDIZED INSURED THE MORE LIKELY THEY ARE TO DRIVE HEALTH SPENDING UPWARD WHICH SUGGESTS THAT THE SUBSIDIES PROGRESSIVELY DISMANTLE DISCIPLINE ACROSS THE SYSTEM AMONG PEOPLE WHO ARE INSIDE THE INSURANCE SYSTEM THE LOWEST COSTS ARE FOR THOSE WHO INSURE THEMSELVES AS INDIVIDUALS THESE POLICIES TYPICALLY COME WITH A LARGE DEDUCTIBLE AND DON'T COVER OPTIONAL TREATMENTS THE LIMITATIONS ARE PALATABLE BECAUSE THEY MEAN THE POLICIES HAVE PREMIUMS THAT PEOPLE CAN AFFORD THE HIGHEST COSTS PER PATIENT ARE THE GOVERNMENT'S MEDICARE AND MEDICAID PROGRAMS FOLLOWED BY COMPANYSUPPLIED HEALTH INSURANCE COMPANY INSURANCE GETS A TAX EXEMPTION THAT ENCOURAGES WORKERS TO TAKE ON MORE COVERAGE THAN THEY WOULD IF THEY WERE SPENDING AFTERTAX DOLLARS ALSO LITTLE DISCUSSED IS THE FACT THAT STATE LAWS OFTEN REQUIRE THAT POLICIES OFFER COVERAGE FOR ALL SORTS OF EXTRANEOUS THINGS SUCH AS HAIR TRANSPLANTS AND IN VITRO FERTILIZATION WHILE THESE MIGHT BE IMPORTANT TO SOME PEOPLE THEY'D THINK TWICE IF THEY DIRECTLY INCURRED THE COSTS IT'S WORTH REMEMBERING WHAT THESE PERVERSE INCENTIVES HAVE WROUGHT HEALTH SPENDING IN THIS COUNTRY HAS BEEN RISING SEVERAL TIMES FASTER THAN INFLATION YET THERE HASN'T BEEN A COMMENSURATE IMPROVEMENT IN LIFE EXPECTANCY OR OTHER HEALTH INDICATORS WE'RE SPENDING MORE FOR HEALTH CARE AND NOT GETTING MORE HEALTH WORSE FEAR OF LOSING THEIR INSURANCE LOCKS PEOPLE INTO JOBS THEY MIGHT OTHERWISE LEAVE THAT PORTABILITY PROBLEM NOT SIMPLY THE RISING COST IS WHY THE MIDDLE CLASS IS PANICKED ABOUT HEALTH CARE MAKING THIS SORT OF INFORMATION ABOUT THE SYSTEM CLEAR TO THE AMERICAN PEOPLE WOULD TAKE MORE THAN 100 DAYS WHICH IS WHY WE SUSPECT THAT THE CLINTON TASK FORCE PRETTY MUCH KNEW FROM DAY 1 WHAT IT WANTED TO DO INSTEAD OF TRYING TO FINESSE OR TALK THEIR WAY AROUND JUDGE LAMBERTH'S FACA RULING WHY DON'T THEY JUST PULL THE PLAN OUT OF IRA MAGAZINER'S WHITE HOUSE DESK DRAWER AND RELEASE IT INTO THE LIGHT OF DAY SO WE CAN GET ON WITH THE DEBATE IT'S PRETTY CLEAR THAT THE TASK FORCE PLANNERS ARE GOING TO THROW UP THEIR HANDS IN THE FACE OF THE SYSTEM'S PERVERSE INCENTIVES AND THE NEED TO GET SOME MARKET LOGIC BACK INTO THE SYSTEM INSTEAD THEY'RE LIKELY TO GIVE US FAVORED ADVISER STUART ALTMAN'S PRICECONTROL THEORIES COUPLED WITH A RUBE GOLDBERG PROPOSAL RUNNING UNDER THE THE OXYMORON BANNER OF MANAGED COMPETITION TWO THINGS SEEM CERTAIN TO US THIS ISN'T GOING TO DO MUCH TO RESTRAIN COSTS THOUGH FUTURE HEALTH INFLATION MAY TAKE THE FORM OF WAITING LISTS AND DETERIORATING SERVICE FROM DEMORALIZED DOCTORS THE OTHER IS THAT AMERICANS WON'T MUCH LIKE THE RESULTS 9303110065 930311 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO TO KEEP PROFITS PERKING GOURMET COFFEE RETAILERS BREW UP FANCIER BEANS MARTY'S A DALLAS GOURMET STORE SOON PLANS TO OFFER 30 KINDS UP FROM 20 IT IS ALSO INSTALLING A GRANITETOPPED COFFEE BAR TO BOOST SALES FURTHER FAIRWAY MARKET NEW YORK CARRIES THREE NEW BEANS THIS YEAR INCLUDING AN 1198APOUND PUERTO RICAN COFFEE NOT SEEN IN THE US IN 50 YEARS A PLOY LIKELY TO CATCH ON IS THE MARKETING OF SPECIFIC GROWING AREAS NOT JUST COUNTRY OF ORIGIN STARBUCKS COFFEE CO FOR ONE NOW TOUTS BEANS FROM COLOMBIA'S NARINO REGION WHILE AFICIONADOS ARE GOING FOR THE PRICIER BREWS PRICES OVERALL HAVE BEEN STABLE FOR SEVERAL YEARS THE SPECIALTY COFFEE ASSOCIATION OF AMERICA SAYS IT CITES GREATER SUPPLY AS GROWERS CATER TO THE EXPANDING US DEMAND RETAIL COMPETITION TOO KEEPS A TIGHT LID ON PRICES THE ASSOCIATION PREDICTS THE NUMBER OF GOURMET COFFEE RETAILERS WILL JUMP TO 2500 IN 1999 FROM 1000 IN 1989 PETER LONGO OF PORTO RICO IMPORTING BELITTLES THE TREND OF RAISING COFFEE TO THE LEVEL OF EXOTIC WINES PEOPLE ARE SATISFIED WITH 4APOUND COFFEES HE SAYS CHRISTIE'S CORKS IT CLOSING A US WINEAUCTION BUSINESS IN MAY THE PULLOUT LEAVES ONLY TWO AUCTIONEERS IN THE COUNTRY THAT CAN HANDLE PRIVATE WINE SALES THE AUCTION HOUSE SAYS THE DEPARTURE AGGRAVATES THE DIFFICULTY FACED BY A SMALL BUT GROWING BAND OF US COLLECTORS WHEN THEY WANT TO LIQUIDATE THEIR CACHES OF CLARET MOST STATES BAN WINE SALES BY UNLICENSED PERSONS EXCEPT FOR ESTATE AND BANKRUPTCY SALES COLLECTORS HAVE TO SEND THEIR WINE TO AUCTION HOUSES IN THE RARE STATES THAT DO ALLOW PRIVATE SALES SUCH AS CALIFORNIA AND ILLINOIS CHRISTIE'S BLAMES ITS CLOSURE ON SIGNIFICANT OVERHEAD COSTS FROM HAVING TO BASE ITS BUSINESS IN CHICAGO AND NOT IN NEW YORK HOME OF ITS MAIN US OFFICES NEW YORK STATE DOESN'T ALLOW PRIVATE WINE SALES THE METROPOLITAN PACKAGE STORE ASSOCIATION A NEW YORK TRADE GROUP HAS INTRODUCED A BILL THAT WOULD EXEMPT COLLECTORS FROM THE BAN IT HOPES THE CHRISTIE'S PULLOUT WILL GIVE SOME IMPETUS TO THE BILL PICTURE THIS VIDEO JUNK MAIL GRABS MORE MAILBOX SPACE AS COSTS FALL SOME COMPANIES TAKE TO PLUGGING PRODUCTS VIA UNSOLICITED VIDEO MAILINGS SWAYED BY COSTS THAT AREN'T MUCH MORE THAN THOSE FOR GLOSSY BROCHURES A VIDEO CAN BE COPIED PACKAGED AND MAILED FOR UNDER 2 EACH BECAUSE OF CHEAPER LIGHTERWEIGHT CASES AND BETTER TAPING TECHNOLOGY SAYS CAMBRIDGE ASSOCIATES STAMFORD CONN CHRYSLER CORP SAYS THAT EVEN INCLUDING COSTS FOR ORIGINAL FOOTAGE EXPENSES ARE IN THE SAME BALLPARK AS A GOOD PRINT MAILING CHRYSLER MAILED 500000 TAPES LAST YEAR TO TOUT MINIVANS AND NOW HAS A VIDEO CAMPAIGN FOR ITS MIDSIZE CARS THE EAGLE VISION CONCORDE AND INTREPID IT SAYS VIDEOS CUT THROUGH THE MAILBOX CLUTTER BECAUSE OF THEIR NOVELTY AMERICAN EXPRESS TRAVEL RELATED SERVICES CO CHOSE VIDEO FOR A PROMOTION WITH CONTINENTAL AIRLINES TO BETTER SHOW THE DIFFERENCE IN SEATS AND SPACE UNDER THE CARRIER'S NEW BUSINESS CLASS SERVICE CAMBRIDGE ASSOCIATES SAYS 80 OF US HOMES HAVE AT LEAST ONE VIDEOCASSETTE RECORDER UP FROM 65 IN 1990 LIKE THERE'S NO MANANA SOUTHOFTHEBORDER QUERIES TOP CALLS TO EXPORT HOTLINE A YEAROLD SERVICE THAT PROVIDES FREE FAX REPORTS ON 78 MARKETS INQUIRIES ON MEXICO WERE DOUBLE THE NUMBER FOR EACH OF THE FORMER SOVIET UNION GERMANY JAPAN BRAZIL AND CANADA BIG APPLE CIRCUS RECEIVES A 235000 NATIONAL ENDOWMENT FOR THE ARTS CHALLENGE GRANT A SALUTE TO THE BIG TOP AS A MAJOR ARTS INSTITUTION BIG APPLE IS THE FIRST CIRCUS TO SNAG A CHALLENGE GRANT WHICH MUST BE MATCHED FOURFOLD BY PRIVATE MONEY TO CUT COSTS FIRST SECURITY FINANCIAL SERVICES INC TRIES DOING MORTGAGES EN MASSE WOULDBE BORROWERS WILL GO TO AN APPOINTED NEW YORK HOTEL THIS WEEKEND FOR A PROCESSING BINGE THE NEW YORK MORTGAGE BROKER SAYS ECONOMIES OF SCALE WILL HALVE ITS 1700PERMORTGAGE PROCESSING COST AND GIVE THE CONSUMER AN EIGHTH OF A POINT OFF MARKET RATES MUSIC LICENSERS WORK ON SIMPLIFYING CONTRACTS ON CORPORATE USE THE AMERICAN SOCIETY OF COMPOSERS AUTHORS AND PUBLISHERS CREATES AN UMBRELLA CONTRACT TO REPLACE SEPARATE PACTS FOR EACH CORPORATE USE OF MUSIC SUCH AS SONGS FOR PHONE CALLERS ON HOLD OR AS BACKGROUND FOR A SALES MEETING THE NEW MUSICINBUSINESS LICENSE IS PART OF BEING USERFRIENDLY SAYS BARRY KNITTEL ASCAP LICENSE DIRECTOR BROADCAST MUSIC INC THE OTHER MAJOR LICENSER SURVEYS FIRMS ON THEIR MUSIC USE WITH A SIMILAR STREAMLINING IN MIND BMI RECENTLY REMINDED 7500 FIRMS VIA LETTER THAT COPYRIGHTED MUSIC PLAYED IN PUBLIC REQUIRES A ROYALTY PAID TO WRITERS AND PUBLISHERS RADIO AND TELEVISION ARE THE BIGGEST USERS BUT THE LICENSERS HAVE ALSO TARGETED BARS HEALTH CLUBS AND SUCH BMI SAYS IT WILL FOCUS ON CORPORATE USE IN 1993 THOSE WHO PAY FEES USUALLY DO SO TO BOTH GROUPS COCACOLA SIMPLY PLAYS ITS OWN COPYRIGHTED JINGLES FOR CALLERS ON HOLD OTHERS USE MUZAK WHICH ITSELF PAYS THE FEES A FIRM MIGHT PAY 147 TO 1168 IN ANNUAL FEES FOR ONHOLD MUSIC DEPENDING ON THE NUMBER OF PHONE LINES BMI SAYS BRIEFS A PRESS RELEASE FROM CORNING GLASS CENTER HAD THIS HEADLINE GLASS CENTER DIRECTOR ATTENDS TOURISM CONFERENCE IN WORLD TRADE CENTER DAY BEFORE BOMB EXPLOSION YANKEE GROUP BOSTON DUBS A CONFERENCE SESSION ON WIRELESS COMPUTER NETWORKS NO WIRE TO RUN NO WIRE TO HIDE 9303110064 930311 LEISURE & ARTS ART TALKS A DIFFERENT SORT OF DIPLOMACY BY FREDERICK KEMPE ATHENS ART SOMETIMES IMITATES ARMSCONTROL TALKS FOR EXAMPLE JUST ASK THE GREEK ORGANIZERS HOW THEY PULLED OFF THEIR EXHIBIT FROM EL GRECO TO CEZANNE A COLLECTION OF EUROPEAN MASTERPIECES ON LOAN FROM THE NATIONAL GALLERY OF ART IN WASHINGTON DC AND THE METROPOLITAN MUSEUM IN NEW YORK AND THEY SOUND A LOT LIKE NUCLEARWEAPONS NEGOTIATORS FIRST THEY EXPLAIN THEY DEPLOYED THEIR OWN HEAVY WEAPONRY AS LEVERAGE THE GREEKS HAVE A LOT OF FIFTH CENTURY BC GREEK SCULPTURE SO MUCH INDEED THAT THE US WITH ITS PALTRY ARSENAL OF TWO SUCH OBJECTS CANNOT HOPE EVER TO ACHIEVE PARITY SO THE GREEKS FLAUNTED THEIR MARBLE AND BRONZE THROWWEIGHT ADVANTAGE BY OFFERING SOME OF THEIR MOST AWESOME PIECES TO AMERICA FOR THE GREEK MIRACLE EXHIBIT THAT OPENS TODAY AND RUNS THROUGH MAY 23 AT THE MET AFTER AN INITIAL SHOWING AT THE NATIONAL GALLERY SECOND THE GREEKS HAD THE POLITICAL CLOUT TO OVERCOME DOMESTIC OPPOSITION PRESIDENT CONSTANTINE MITSOTAKIS AND OTHERS REALIZING THAT CULTURAL EXCHANGES CAN BE GOOD POLITICAL PROPAGANDA QUELLED PROTEST FROM THOSE WHO BELIEVED SUCH PRICELESS ITEMS SHOULD NEVER BE MOVED THIRD THE GREEKS HAD THE RIGHT NEGOTIATOR JUST WHEN IT SEEMED THE TALKS WOULD COLLAPSE IN A CULTURE CLASH OVER THE RELATIVE WORTH OF THE TWO SIDES' OFFERINGS GREEK OFFICIALS SAY THE EXCHANGE WAS SAVED BY THE WRITER NICHOLAS GAGE MR GAGE'S BESTSELLING NOVEL ELENI HAS MADE HIM SOMETHING OF AN ICON IN GREEK CIRCLES AND HE'S THE FAVORITE GREEKAMERICAN OF NEW YORK LITERATI WITH A FOOT IN EACH CULTURE HE HEALED WOUNDED EGOS ON BOTH SIDES DESPITE THE IMPROVED POLITICAL CLIMATE THE TALKS PROVED DIFFICULT THERE WAS A LOT OF BRINKSMANSHIP INVOLVED IN THE EARLY TALKS SAYS MR GAGE NOTING THAT THE AMERICANS AT FIRST INSISTED THE GREEKS PROVIDE ONE PRICELESS SCULPTURE FOR EVERY PAINTING THE AMERICANS SLOWLY COMPROMISED UNTIL THE TWO PARTIES SETTLED ON A 72 PAINTING FOR 22 SCULPTURE EXCHANGE THE PROBLEM AS EXPLAINED BY TWO OF THE ORGANIZERS INVOLVED WAS THAT AMERICANS WERE MORE BUSINESSMINDED STARTING WITH THE SMALLEST OFFER POSSIBLE KNOWING THEY'D BE FORCED TO NEGOTIATE UPWARD WHAT THE AMERICANS HADN'T COUNTED ON WAS PHILOTIMO THE GREEK WORD MEANING LOVE OF HONOR OR MORE LOOSELY TRANSLATED SAVING FACE GREEKS ARE WILLING TO ACCEPT A FAR WORSE DEAL IF TREATED RESPECTFULLY SOMETHING THAT DIDN'T ALWAYS FIGURE IN THE AMERICAN CALCULUS ANOTHER US INSIDER ASSERTS THAT WHAT DROVE TALKS AT THE START WAS THE GREEKS' WILLINGNESS TO CONSIDER LENDING LIFESIZE BRONZE PIECES FROM THE FIFTH CENTURY BC ONLY FOUR ARE KNOWN TO EXIST IN THE WORLD TWO IN GREECE AND TWO IN ITALY THESE BRONZES PLAYED THE SAME ROLE FOR THE GREEKS IN THEIR NEGOTIATIONS THAT PRESIDENT REAGAN'S STRATEGIC DEFENSE INITIATIVE HAD PLAYED FOR THE AMERICANS THE SOVIETS NEVER GOT ANY CONCESSION ON SDI AND THE GREEKS NEVER AGREED TO SHIP THEIR UNIMAGINABLY PRECIOUS AND FRAGILE BRONZES BUT THE VERY FACT THAT THE BRONZES WERE ON THE TABLE KEPT THE AMERICANS INTERESTED JUST AS A CHANCE TO CHIVVY THE REAGANITES ABOUT THEIR STAR WARS PLANS APPEALED TO THE SOVIETS THE GREEKS ULTIMATELY WITHDREW THE BRONZES FROM DISCUSSION BECAUSE THE RISK OF SHIPPING THEM WAS GREATER THAN IT IS FOR MARBLE AND PARTLY BECAUSE THEY THOUGHT THE AMERICANS COULDN'T OFFER ENOUGH IN RETURN THE AMERICANS THEN THREATENED A DRASTIC REDUCTION IN THE NUMBER OF PAINTINGS THEY WERE OFFERING AND AGAIN THE TALKS BARELY ESCAPED COLLAPSE BUT THE SHOWS DID GO ON ON BOTH SIDES OF THE ATLANTIC AN OCEAN NAMED AFTER THE GREEK HERO ATLAS DESPITE MUCH CARPING FROM THE US AMONG THE COMPLAINTS WERE THAT THE GREEK MIRACLE WAS BLATANT GREEK POLITICAL PROPAGANDA AND THAT ITS OBJECTS WERE TOO PRECIOUS AND DELICATE TO TRAVEL IN ATHENS THERE HAS BEEN LESS CONTROVERSY MARINA LAMBRAKIPLAKA DIRECTOR OF THE NATIONAL GALLERY OF GREECE AND A PROFESSOR OF ART HISTORY SOMETIMES GETS TEARY WHEN SHE LEADS VISITORS THROUGH THE EXHIBIT HERE THE COLLECTION REMINDS HER OF EVERYTHING GREECE MISSED DURING FOUR CENTURIES OF OTTOMAN RULE THE RENAISSANCE THE BAROQUE IMPRESSIONISM IN A COUNTRY WITHOUT A MAJOR COLLECTION OF EUROPEAN PAINTINGS FROM EL GRECO TO CEZANNE UP THROUGH APRIL 11 HAS HAD THE ARTISTIC REVERBERATIONS OF AN EARTHQUAKE AND ART CLASSES HAVE COME BY THE SCORES TO SEE PAINTINGS BY ARTISTS THEY HAD ONLY SEEN BEFORE IN REPRODUCTION CARAVAGGIO VAN DYCK REMBRANDT VERMEER THE MET EVEN CONSENTED TO LEND GOYA'S PORTRAIT OF A BOY HOLDING A MAGPIE ON A STRING ONE OF ITS MOST POPULAR PAINTINGS THE SHOW BEGINS WITH A LOCAL ANGLE THREE WORKS BY THE CRETANBORN EL GRECO WHOSE NAME IS AFTER ALL A SPANISH NICKNAME MEANING THE GREEK HIS FULL NAME WAS A LOT GREEKER DOMENIKOS THEOTOKOPOULOS MS LAMBRAKIPLAKA TELLS HER STUDENTS THAT EL GRECO HAS A SPECIAL SIGNIFICANCE FOR GREEKS BECAUSE WHILE LIVING IN SPAIN HE REALIZED OUR RENAISSANCE THE ONE THAT WAS THWARTED HERE BY THE TURKISH CONQUEST THIS IS THE DIRECTION IN WHICH BYZANTINE ART WOULD HAVE DEVELOPED HERE SHE ASSERTS IF THE TURKISH OCCUPATION HADN'T HAPPENED A SHOW THAT BEGINS WITH EL GRECO ENDS WITH A HANDFUL OF WORKS BY PAUL CEZANNE A PAINTER EVEN MOST GREEKS WILL CONCEDE WAS ENTIRELY FRENCH THE ART PROFESSOR STILL MANAGES TO SEE HIM AS AN AVATAR OF EL GRECO EVEN THOUGH THEY WERE NEARLY 300 YEARS APART YOU CAN SEE THE SAME RELATIONSHIPS WITH SPACE THE SAME DISTORTIONS THE SAME USE OF LIGHT PICASSO IT TURNS OUT WAS ALSO A GREEK BY INCLINATION MS LAMBRAKIPLAKA QUOTES HIM AS SAYING I HAVE A FATHER AND A MOTHER MY FATHER WAS EL GRECO AND MY MOTHER WAS CEZANNE THE CURATOR SAYS SOME SCHOLARS HAVE SUGGESTED THAT EL GRECO'S THE VISION OF ST JOHN PROVIDED PICASSO WITH INSPIRATION FOR HIS EARLY CUBIST WORKS ESPECIALLY LES DEMOISELLES D'AVIGNON' WHICH MIRRORS THE EXPRESSIONIST ANGULARITY OF EL GRECO'S MASTERPIECE MOST SCHOLARS HAVE POINTED TO PICASSO'S INTEREST IN AFRICAN ART AND TO A RECENT VISIT TO AN AVIGNON BROTHEL BUT IN GREECE THE GREEK ANGLE TENDS TO TAKE PRECEDENCE OVER OTHER THINGS POINTING THIS FOIBLE OUT DOES NOT MAKE GREEKS SHY THE TUT AND SULEYMAN EXHIBITS ALSO WERE PROPAGANDA THEY SAY GLITTERING PR TRIUMPHS THAT DROVE HOME THE WORTH OF EGYPTIAN AND TURKISH CULTURE SOME CRITICS HAVE SAID THE GREEK MIRACLE EXHIBIT IS ANOTHER EXAMPLE OF THE RAW NATIONALISM RISING IN THE BALKANS BUT AS EXPRESSIONS OF NATIONALISM GO IT IS FAR PREFERABLE TO ETHNIC CLEANSING MR KEMPE IS MANAGING EDITOR OF THE WALL STREET JOURNAL EUROPE 9303110063 930311 US JUDGE RULES IN FAVOR OF CLINTON HEALTH GROUP WASHINGTON PRESIDENT CLINTON'S MASSIVE EFFORT TO DEVISE AN OVERHAUL FOR THE NATION'S HEALTHCARE SYSTEM CLEARED A HURDLE IN FEDERAL COURT HERE US DISTRICT JUDGE ROYCE C LAMBERTH RULED THAT THE PRESIDENT'S HEALTHCARE TASK FORCE AND ITS WORKING GROUPS LED BY HILLARY RODHAM CLINTON COULD CONTINUE TO MEET IN SECRECY AS THEY MOVE TOWARD THEIR GOAL OF DRAFTING A HEALTHCARE PROPOSAL BY MAY 1 A SUIT BY THREE HEALTHCARE GROUPS HAD CHALLENGED THE GROUPS' RIGHT TO MEET WITHOUT PUBLIC SCRUTINY THE JUDGE DID AGREE WITH THE DEFENDANTS THAT THE TASK FORCE ITSELF WHICH IS MADE UP OF MRS CLINTON SIX CABINET OFFICERS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AND FOUR OTHER WHITE HOUSE ADVISERS MUST MEET IN PUBLIC IF IT IS GATHERING FACTS OR INFORMATION THE GROUP CAN CONTINUE MEETING IN PRIVATE FOR THE PURPOSE OF FORMULATING ADVICE AND RECOMMENDATIONS TO THE PRESIDENT HOWEVER THE JUDGE SAID THE WHITE HOUSE SAID IT WOULD COMPLY WITH JUDGE LAMBERTH'S ORDER IN GENERAL THE PRESIDENT IS GRATIFIED BY THE DECISION WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID ADDED BOB BOORSTIN A SPOKESMAN FOR THE TASK FORCE WE'RE GOING TO JUST KEEP DOING WHAT WE WERE DOING ALREADY 9303110062 930311 YOUR MONEY MATTERS HOW CLINTON'S TAX PLAN WILL HIT THE ELDERLY BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL THE HIGH COST OF GROWING OLD MAY BE ABOUT TO GET EVEN HIGHER PRESIDENT CLINTON'S PROPOSAL TO INCREASE TAXATION OF SOCIAL SECURITY BENEFITS WOULD COST MANY ELDERLY AMERICANS HUNDREDS OF DOLLARS IN ADDITIONAL TAXES EACH YEAR AND FOR SOME THE BILL WOULD BE MORE THAN 1000 WHILE THAT MAY NOT SEEM LIKE BIG BUCKS TO THOSE WEALTHY INDIVIDUALS WHO FACE INCOME TAX INCREASES IN THE TENS OF THOUSANDS OF DOLLARS THE PROPOSED INCREASE WOULD ADD 10 OR MORE TO MANY SENIOR CITIZENS' FEDERAL TAX BILLS COMBINED WITH THE PROPOSED TAX ON ENERGY CONSUMPTION AND POSSIBLE INCREASES IN MEDICARE PREMIUMS MANY SOCIAL SECURITY RECIPIENTS WOULD BE TAKING A SIGNIFICANT HIT IN AFTERTAX INCOME UNMARRIED RETIREES WITH INCOME AS LOW AS 35000 A YEAR WOULD FEEL SOME IMPACT ACCORDING TO CALCULATIONS DONE BY ACCOUNTANTS PRICE WATERHOUSE & CO FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS THIS IS NOT GOING TO KEEP ANYBODY FROM EATING OR PAYING THE RENT SAYS LARRY DILDINE DIRECTOR OF TAX ECONOMICS FOR PRICE WATERHOUSE IN WASHINGTON BUT IT WILL PUT THE SQUEEZE ON PEOPLE WHO ARE BY NO MEANS IN THE WEALTHY CATEGORY ALTHOUGH THE CLINTON ADMINISTRATION LIKES TO POINT OUT THAT TAXPAYERS WITH INCOME OVER 100000 WOULD BEAR 70 OF THE INCREASED TAX BURDEN OF THE TAX PACKAGE AS A WHOLE MR DILDINE ESTIMATES THAT ABOUT 70 OF THE BURDEN OF INCREASED SOCIAL SECURITY TAXATION WILL FALL ON RETIREES WITH INCOME UNDER 100000 UNDER THE CLINTON TAX PROPOSAL A HYPOTHETICAL RETIREE WHOSE 45000 ANNUAL INCOME INCLUDES 9180 IN SOCIAL SECURITY BENEFITS COULD FACE A FAR BIGGER TAX INCREASE THAN HER YUPPIE DAUGHTER AND SONINLAW WHOSE COMBINED INCOME IS FOUR TIMES THAT AMOUNT THE YOUNG COUPLE'S SUBSTANTIAL ITEMIZED DEDUCTIONS FOR MORTGAGE INTEREST AND STATE AND LOCAL TAXES WOULD PUSH THEIR TAXABLE INCOME BELOW THE THRESHOLD FOR THE HIGHEST FEDERAL TAX RATE THE SOCIAL SECURITY RECIPIENT IS MORE LIKELY TO TAKE THE STANDARD DEDUCTION IF LIKE MANY RETIREES SHE DOESN'T HAVE A BIG MORTGAGE AND LIVES IN A LOWTAX STATE AND SHE WOULD BE TAXED ON MORE OF HER SOCIAL SECURITY BENEFITS IT'S A GLARING DOUBLE STANDARD SAYS JANICE BERNSTEIN A 61YEAROLD RETIREE IN LOS ANGELES WHOSE 69YEAROLD HUSBAND RECEIVES SOCIAL SECURITY BENEFITS MOST SENIORS IN THIS SITUATION WILL NOT BE ABLE TO REENTER THE LABOR FORCE TO MAKE UP FOR THE LOST INCOME ADMINISTRATION OFFICIALS SAY THE PLAN IS FAIR MOST AMERICANS ARE BEING ASKED IN ONE WAY OR ANOTHER TO PLAY A PART IN THIS EFFORT TO REDUCE THE FEDERAL BUDGET DEFICIT SAYS BARRY TOIV A SPOKESMAN FOR THE OFFICE OF MANAGEMENT AND BUDGET ENTITLEMENT PROGRAMS ARE A HUGE PART OF THE BUDGET AND RETIREMENT BENEFITS ARE A HUGE PART OF ENTITLEMENTS MR TOIV SAYS THE ADMINISTRATION REJECTED THE IDEA OF TAMPERING WITH SOCIAL SECURITY'S COSTOFLIVING ADJUSTMENT THE MOST DIRECT WAY TO REDUCE SPENDING BECAUSE THE DIRECT IMPACT WOULD HAVE BEEN NOT ONLY ON THOSE WHO CAN AFFORD IT BUT ALSO ON THOSE WHO CAN'T TAXATION OF SOCIAL SECURITY BENEFITS BEGAN IN 1984 BASED ON 1983 LEGISLATION UNDER THAT LAW INDIVIDUALS WITH INCOME OF MORE THAN 25000 AND COUPLES WITH MORE THAN 32000 INCLUDING 50 OF THEIR SOCIAL SECURITY BENEFITS PAY INCOME TAX ON HALF THEIR BENEFITS THE FORMULA FOR CALCULATING HOW MUCH TAX IS DUE CAN GET COMPLICATED LET'S SAY A COUPLE HAS ANNUAL INCOME OF 50000 INCLUDING 36860 FROM INVESTMENTS A CORPORATE PENSION SOME PARTTIME WORK PLUS 13140 IN COMBINED SOCIAL SECURITY BENEFITS HALF THE SOCIAL SECURITY BENEFITS 6570 WOULD BE ADDED TO THEIR OTHER INCOME FOR A TOTAL OF 43430 TO DETERMINE WHETHER THE BENEFITS WILL BE TAXED UNDER CURRENT LAW 50 OF THE SOCIAL SECURITY BENEFIT OR 50 OF THE EXCESS OVER 32000 IS TAXABLE WHICHEVER IS LESS IN THIS CASE 50 OF THE 11430 EXCESS IS LESS SO 5715 WOULD BE TAXABLE THEIR TOTAL TAX BILL ON ALL THEIR INCOME WOULD BE 4526 THE CLINTON PROPOSAL AS CURRENTLY DESIGNED WOULD CONTINUE TO USE 50 OF SOCIAL SECURITY BENEFITS TO CALCULATE INCOME LEVELS BUT 85 OF THE BENEFIT OR 85 OF THE EXCESS WHICHEVER IS LESS WOULD BE TAXABLE IN THE ABOVE EXAMPLE THE COUPLE WOULD PAY TAX ON 9716 OF THEIR SOCIAL SECURITY INCOME THEIR FEDERAL TAX BILL WOULD BE 5126 OR 600 MORE THAN UNDER CURRENT LAW A 13 INCREASE ALTHOUGH THE CLINTON PROPOSAL WOULDN'T BY ITSELF MAKE ANYONE SUBJECT TO TAXATION FOR THE FIRST TIME INFLATION ADDS MORE PEOPLE TO THE POOL EACH YEAR THE INCOME THRESHOLDS WHICH AREN'T INDEXED FOR INFLATION HAVE BEEN THE SAME SINCE 1984 INITIALLY 10 OF SOCIAL SECURITY RECIPIENTS HAD THEIR BENEFITS TAXED IT'S NOW 22 THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION ESTIMATES THAT THE PERCENTAGE WILL RISE TO 30 BY 1998 AARP ESTIMATES THAT 44 MILLION FAMILIES WOULD PAY MORE TAXES NEXT YEAR IF THE CLINTON SOCIAL SECURITY PLAN IS IMPLEMENTED THERE CURRENTLY ARE ABOUT 41 MILLION SOCIAL SECURITY RECIPIENTS SWITCHING INTO TAXEXEMPT INVESTMENTS MAY LOWER A RETIREE'S TOTAL TAX BILL BUT IT WON'T AFFECT TAXATION OF SOCIAL SECURITY BENEFITS INCOME FROM TAXEXEMPT INVESTMENTS SUCH AS MUNICIPAL BOND INTEREST IS INCLUDED WHEN CALCULATING WHETHER INCOME EXCEEDS THE THRESHOLDS FOR BENEFITS TO BE TAXED I DON'T KNOW THAT THERE'S A LOT THESE PEOPLE CAN DO SAYS MARK SPRINGER A PARTNER WITH ACCOUNTANTS KPMG PEAT MARWICK IN WASHINGTON THEY'RE JUST CAUGHT THE TREASURY DEPARTMENT HAS ESTIMATED THAT INCREASED TAXATION OF SOCIAL SECURITY BENEFITS WOULD PRODUCE 21 BILLION IN ADDITIONAL REVENUE OVER FOUR YEARS THE FEDERAL DEFICIT FOR THE CURRENT FISCAL YEAR ENDING SEPT 30 IS ESTIMATED AT 319 BILLION FOR NOW AARP SAYS IT IS BUSY EDUCATING LAWMAKERS ABOUT THE EFFECTS OF THE CLINTON PROPOSAL ON RETIREES AS A FREESTANDING PROPOSAL AARP WOULD OPPOSE IT SAYS MARTY CORRY THE ASSOCIATION'S DIRECTOR OF FEDERAL AFFAIRS BUT WE'RE STILL EVALUATING THE WHOLE PACKAGE WE OWE IT TO THE PRESIDENT AND TO THE PUBLIC TO SEE HOW THE PACKAGE COMES TOGETHER THE EFFECTS OF PRESIDENT CLINTON'S PROPOSED TAX CHANGES ON A HYPOTHETICAL UNMARRIED RETIREE WHO TAKES THE STANDARD DEDUCTION COMPARED WITH A CHILDLESS TWOCAREER COUPLE WITH SUBSTANTIAL ITEMIZED DEDUCTIONS FOR MORTGAGE INTEREST AND STATE AND LOCAL TAXES 9303110061 930311 HEDGE FUND MANAGER GETS CAUGHT SHORT BY JOHN R DORFMAN AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL THE WORLD IS CRASHING AROUND THE EARS OF ROBERT F DOVIAK II AND THE WEALTHY INVESTORS WHO GAVE HIM THEIR MONEY TO MANAGE FOR THREE YEARS THE 32YEAROLD MR DOVIAK HAS LIVED THE SWASHBUCKLING LIFE OF A HEDGE FUND MANAGER ONE OF THOSE INVESTMENT BUCCANEERS WHO GOES BOTH LONG STOCKS OWNING THEM FOR A POTENTIAL GAIN AND SHORT STOCKS BETTING ON THEM TO DECLINE AND HE HAS ACHIEVED A MEASURE OF FAME WITH APPEARANCES IN SEVERAL INVESTMENT CONTESTS INCLUDING THIS NEWSPAPER'S INVESTMENT DARTBOARD BUT LAST WEEK THE SECURITIES AND EXCHANGE COMMISSION FILED A CIVIL LAWSUIT AGAINST MR DOVIAK CHARGING HIM WITH SECURITIES FRAUD THE COMPLAINT FILED IN FEDERAL COURT IN DALLAS SAYS MR DOVIAK DIVERTED ABOUT 1 MILLION FROM HIS 4 MILLION HEDGE FUND DOVIAK PARTNERS IN PART TO SHORE UP HIS TROUBLED TEXAS BROKERAGE FIRM DOVIAK SECURITIES INC I GOT MYSELF IN TOOBIG SHORT POSITIONS AND GOT SQUOOSHED BY THE MARKET MR DOVIAK SAID YESTERDAY I DO OWE THE PARTNERSHIP MONEY TO THE EXTENT I'VE BORROWED FROM THE FUND I INTEND TO DO MY BEST TO REPAY IT HE SAID HE IS FULLY COOPERATING WITH THE SEC AND IS TRYING TO REACH A RESOLUTION REGARDLESS OF HOW THE SEC LAWSUIT IS RESOLVED THE CASE IS A REMINDER THAT EVEN SOPHISTICATED INVESTORS OUGHT TO BE CAUTIOUS WHEN PICKING PEOPLE TO MANAGE THEIR MONEY MANY INVESTMENT PROFESSIONALS CONTEND THAT SEC REGULATION OF REGISTERED INVESTMENT ADVISERS IS LAX WITH INSPECTIONS ONLY EVERY FEW YEARS BUT HEDGEFUND MANAGERS WHO RUN PRIVATE PARTNERSHIPS WITH AT MOST 100 INVESTORS AREN'T REGISTERED WITH THE SEC AND AREN'T INSPECTED BY IT AT ALL INVESTMENT CONSULTANTS SAY DOVIAK PARTNERS APPEARS TO HAVE DISPLAYED SEVERAL WARNING SIGNS THAT INVESTORS WOULD HAVE DONE WELL TO NOTICE ONE DANGER SIGN WAS THE APPARENT ABSENCE OF A RECENT AUDIT ACCORDING TO PHILIP W OFFILL JR THE SEC ATTORNEY SPEARHEADING THE CASE COOPERS & LYBRAND SIGNED OFF ON A DOVIAK PARTNERS AUDIT FOR THE YEAR 1990 BUT HE SAID THE SEC IS UNAWARE OF ANY AUDITOR'S OPINION ISSUED SUBSEQUENTLY COOPERS YESTERDAY SAID IT WAS ENGAGED TO DO A 1991 AUDIT BUT NEVER COMPLETED ITS REPORT MR DOVIAK DECLINED TO SAY YESTERDAY WHEN THE MOST RECENT AUDIT HAD BEEN CONDUCTED THE PARTNERSHIP AGREEMENT DOES NOT CALL FOR AN AUDIT HE NOTED ANOTHER ISSUE WAS MR DOVIAK'S RECORD AS A SECURITIES BROKER BEFORE HE WENT OUT ON HIS OWN ACCORDING TO PEGGY PETERS DIRECTOR OF THE DEALER REGISTRATION DIVISION OF THE TEXAS SECURITIES BOARD IN AUSTIN TEXAS THERE WERE FIVE INVESTOR COMPLAINTS ON FILE AGAINST MR DOVIAK FROM 1985 THROUGH 1991 THAT RESULTED IN MONETARY SETTLEMENTS THOSE SETTLEMENTS WERE PAID BY PRUDENTIAL SECURITIES THEN PRUDENTIALBACHE AND SOUTHWEST SECURITIES TWO OF MR DOVIAK'S FORMER EMPLOYERS THE TEXAS REGULATORS SAID THE AMOUNTS OF THE SETTLEMENTS RANGED FROM 11375 TO 75000 ANY INVESTOR WHO TELEPHONED THE TEXAS SECURITIES BOARD WOULD HAVE BEEN INFORMED ABOUT THESE COMPLAINTS AND THEIR DISPOSITION A THIRD POSSIBLE DANGER SIGN WAS THE FACT THAT MR DOVIAK WAS RUNNING ANOTHER BUSINESS IN THIS CASE A SMALL BROKERAGE HOUSE WHILE RUNNING HIS HEDGE FUND RELATED BUSINESSES ARE AN ISSUE SAYS PETER DECICCO PRESIDENT OF PORTFOLIO MANAGEMENT RESOURCES AN INVESTMENT CONSULTING FIRM IN FAIRFIELD IOWA IF YOU HAVE A VENTURE THAT'S A CAPITALEATER POTENTIALLY THAT'S A CONCERN APPROXIMATELY 20 WEALTHY INDIVIDUALS HAD INVESTED IN MR DOVIAK'S PARTNERSHIP MR DOVIAK SAID HE MET WITH SOME PARTNERS OVER THE WEEKEND AND AGREED VOLUNTARILY NOT TO MAKE ANY NEW INVESTMENTS UNTIL THE PARTNERS DECIDE WHAT COURSE THEY WANT TO FOLLOW MR OFFILL WHO IS WITH THE SEC'S FORT WORTH OFFICE SAID MR DOVIAK VOLUNTARILY SHUT HIS PARTNERSHIP DOWN ON MONDAY AFTER A TEMPORARY RESTRAINING ORDER WAS ENTERED BY A TEXAS STATE COURT JUDGE BARRING HIM FROM FURTHER TRADING THE SEC CURRENTLY CAN FIND ONLY ABOUT 350000 IN CASH AND SECURITIES IN THE COFFERS OF DOVIAK PARTNERS MR OFFILL SAID AN ADDITIONAL 2 MILLION OR SO IS CARRIED ON THE FUND'S BOOKS AS THE VALUE OF INVESTMENTS IN CLOSELY HELD COMPANIES BY MR OFFILL'S ESTIMATE 60 CENTS ON THE DOLLAR IS PROBABLY THE UPPER BOUND OF WHAT INVESTORS IN THE HEDGE FUND MAY RECOVERASSUMING THE HOLDINGS IN THE CLOSELY HELD FIRMS ARE WORTH THEIR STATED VALUE WHAT ARE THOSE CLOSELY HELD COMPANIES I DON'T WANT TO SAY MR DOVIAK SAID YESTERDAY MR OFFILL SAID HE DOESN'T KNOW BUT ONE INVESTOR PRESENT AT THE WEEKEND MEETING SAYS HE KNOWS AND FEARS THEY ARE WORTH FAR LESS THAN THE STATED VALUE THE INVESTOR SAID AN INVESTMENT IN SIGNATURE HOMECARE GROUP OF IRVING TEXAS IS CARRIED ON THE PARTNERSHIP'S BOOKS AT A VALUE OF 17 MILLION AND AN INVESTMENT IN ALARM SURVEILLANCE INC OF MATTHEWS NC IS CARRIED AT A VALUE OF 500000 THE LATTER COMPANY HAS REVENUE OF ONLY ABOUT 280000 THE INVESTOR SAID AND DOVIAK PARTNERS OWNS ONLY 10 OF IT THE SEC'S LAWSUIT IS A CIVIL ACTION MR OFFILL SAID THERE IS NO CRIMINAL INVESTIGATION UNDER WAY THE SUIT SEEKS DISGORGEMENT OF ANY MONEY WRONGFULLY DIVERTED AND MONEY PENALTIES IN AN UNSPECIFIED AMOUNT THE COMPLAINT SAYS MR DOVIAK DIVERTED APPROXIMATELY 800000 FROM DOVIAK PARTNERS TO HIMSELF IN THE FORM OF UNSECURED LOANS OR ADVANCES THE COMPLAINT SAYS A PORTION OF THAT MONEY APPARENTLY HAS BEEN USED TO FUND THE BROKERAGE FIRM'S OPERATING LOSSES BUT THE BULK OF THE FUNDS ARE UNACCOUNTED FOR IN ADDITION THE HEDGE FUND MADE SOME DIRECT INVESTMENTS IN MR DOVIAK'S STRUGGLING BROKERAGE FIRM THE COMPLAINT SAYS MR DOVIAK'S OUTSPOKEN COMMENTS ON STOCKS HAVE APPEARED IN THIS NEWSPAPER FORBES MAGAZINE AND OTHER PUBLICATIONS IN THIS NEWSPAPER'S INVESTMENT DARTBOARD STOCKPICKING CONTEST HE RECOMMENDED A SHORT SALE OF COLLEGE BOUND THAT PROVED AN EXCELLENT RECOMMENDATION AS THE STOCK EVENTUALLY COLLAPSED BUT NOT IN TIME TO HELP MR DOVIAK IN THE CONTEST HE FINISHED LAST PEOPLE WHO HAVE DEALT WITH HIM WERE SURPRISED BY THE SEC'S ACTION ONE INVESTMENT PROFESSIONAL SAID HE DOESN'T STRIKE ME AS BAD GUY I CAN'T IMAGINE HE WOULD HAVE DONE ANYTHING ILLEGAL AND MALI CIOUS ACQUAINTANCES DESCRIBE MR DOVIAK AS CHARMING AND GOOD AT MARKETING HIMSELF SEVERAL BROKERS AND CONSULTANTS ALSO DESCRIBE HIM AS COCKY ABOUT HIS INVESTMENT OPINIONS PRONE TO SCOFF AT AN OPPOSING VIEW OF A STOCK MICHAEL STOLPER AN INVESTMENT CONSULTANT IN SAN DIEGO SAID HE RARELY RECOMMENDS HEDGE FUNDS TO HIS CLIENTS IT'S CHIC TO INVEST IN A HEDGE FUND HE SAID BUT WHILE A FEW HEDGE FUNDS HAVE SUPERB LONGTERM RECORDS THOSE OPEN TO NEW IN VESTORS OFTEN ARE HIGHLY RISKY YOU'RE GIVING MONEY TO TWO 26YEAROLDS IN SOME DINKY LITTLE OFFICE WITH A QUOTRON AND A SECRETARY HE SAID AND THEY ARE VIRTUALLY UNRESTRICTED IN THEIR INVESTMENT ACTIVITIES 9303110060 930311 CDC'S DIRECTOR PLANS RESIGNATION FOR JUNE ATLANTA THE DIRECTOR OF THE CENTERS FOR DISEASE CONTROL AND PREVENTION DR WILLIAM L ROPER SAID HE PLANS TO RESIGN IN JUNE DR ROPER 44 YEARS OLD WAS APPOINTED TO HEAD THE FEDERAL AGENCY IN 1990 BY PRESIDENT BUSH PREVIOUSLY HE SERVED AS MR BUSH'S SENIOR HEALTH ADVISER IN THE WHITE HOUSE HE ALSO HEADED THE HEALTH CARE FINANCING ADMINISTRATION WHICH OVERSEES MEDICARE AND MEDICAID UNDER PRESIDENT REAGAN HIS DEPARTURE IS PART OF THE EXODUS OF SENIOR HEALTH OFFICIALS UNDER THE NEW DEMOCRATIC ADMINISTRATION THE DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH DR BERNADINE HEALY IS STEPPING DOWN IN JUNE AT THE CDC DR ROPER FOCUSED ON PREVENTIVE SERVICES AS WELL AS HEALTHCARE PROGRAMS FOR CHILDREN AT THE HEALTH CARE FINANCING ADMINISTRATION HE OVERSAW MAJOR CHANGES IN MEDICARE REIMBURSEMENTS TO PHYSICIANS BASING PAYMENTS ON THE TIME THAT DOCTORS SPEND WITH PATIENTS AND THE SKILLS THEY BRING TO BEAR AS OPPOSED TO THE TRADITIONAL SYSTEM OF PAYING DOCTORS' REASONABLE AND CUSTOMARY CHARGES THE CDC DIDN'T DISCUSS DR ROPER'S PLANS A SEARCH COMMITTEE HEADED BY DR WILLIAM FOEGE FORMER HEAD OF THE AGENCY HAS BEEN FORMED TO FIND A SUCCESSOR 9303110059 930311 DIVIDEND NEWS TRILON FINANCIAL CORP TRILON FINANCIAL CORP TORONTO SAID IT CUT ITS COMMONSHARE DIVIDEND TO 75 CANADIAN CENTS SIX US CENTS PER CLASS A AND B SHARE FROM 135 CANADIAN CENTS THE DIVIDEND IS PAYABLE MARCH 31 TO SHARES OF RECORD MARCH 19 THE DIVIDEND CUT IS THE THIRD SINCE LAST JUNE BEFORE THAT TRILON A HOLDING CONCERN IN THE GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN HAD PAID A QUARTERLY DIVIDEND OF 225 CANADIAN CENTS FOR SEVERAL YEARS THE PREVIOUS DIVIDEND CUTS FOLLOWED REDUCTIONS IN COMMON SHARE DIVIDENDS PAID BY ROYAL TRUSTCO LTD A FINANCIAL SERVICES CONCERN 47HELD BY TRILON AS YET ROYAL TRUSTCO HASN'T DECLARED A COMMON SHARE DIVIDEND THIS QUARTER TRILON SAID ITS FINANCIAL RESULTS FOR 1992 WON'T BE COMPLETED UNTIL ROYAL TRUSTCO COMPLETES DISCUSSIONS REGARDING AN INVESTMENT IN ROYAL TRUSTCO BY ROYAL BANK OF CANADA AS REPORTED ROYAL TRUSTCO IS SEEKING A MAJOR EQUITY INVESTMENT FROM ANOTHER FINANCIAL SERVICES CONCERN 9303110058 930311 WHO'S NEWS CLINTON IS NEAR GIVING AMBASSADORSHIPS TO SOME POLITICALLY CONNECTED FIGURES BY MICHAEL K FRISBY AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS ON THE VERGE OF GIVING AMBASSADORIAL POSITIONS TO A HOST OF FAMILIAR DEMOCRATIC FIGURES INCLUDING FUND RAISERS AND OTHERS WITH POLITICAL CONNECTIONS THE BUSH ADMINISTRATION WAS CRITICIZED FOR GIVING POSTS TO CRONIES AND CONTRIBUTORS AND THE CLINTON ADMINISTRATION HAD PROMISED IT WOULDN'T DO THAT SECRETARY OF STATE WARREN CHRISTOPHER HAD VOWED THAT RECOMMENDATIONS FOR AMBASSADORSHIPS WILL BE BASED UPON QUALIFICATIONS THAT EXTEND BEYOND CAMPAIGN PARTICIPATION AND WILL REQUIRE SOME REAL EXPERTISE WITH RESPECT TO THE APPOINTMENT SOME OF THE COMING NOMINATIONS APPEAR SUBJECT TO THE SAME CRITICISM HOWEVER MR CLINTON PLANS TO NOMINATE RICHARD HOLBROOKE WHO WAS ASSISTANT SECRETARY OF STATE FOR ASIA IN THE CARTER ADMINISTRATION TO BE US AMBASSADOR TO JAPAN MR HOLBROOKE WAS AN INFORMAL ADVISER TO MR CLINTON ON ASIAN POLICY DURING THE CAMPAIGN THE SELECTION OF MR HOLBROOKE WHO IS MANAGING DIRECTOR OF LEHMAN BROTHERS HAS BEEN RUMORED FOR MONTHS INDEED LAST DECEMBER WALTER MONDALE PRESIDENT CARTER'S VICE PRESIDENT TOLD A GROUP OF ASIAN JOURNALISTS THAT MR HOLBROOKE WOULD BE PICKED AS AMBASSADOR FOR EITHER JAPAN OR SOUTH KOREA MR HOLBROOKE RAN AFOUL OF MR CHRISTOPHER DURING THE CAMPAIGN BECAUSE OF REPORTS THAT DURING A TRIP TO CHINA HE WAS REPRESENTING HIMSELF AS AN ENVOY OF MR CLINTON THEN THE DEMOCRATIC NOMINEE MR HOLBROOKE WHO HAS NEVER BEEN SHY ABOUT PROMOTING HIMSELF DENIED THE REPORTS PAMELA HARRIMAN A GEORGETOWN SOCIALITE WHO IS ONE OF THE DEMOCRATIC PARTY'S PREMIER FUND RAISERS WILL BE NAMED AMBASSADOR TO FRANCE MS HARRIMAN IS THE WIDOW OF THE MULTIMILLIONAIRE DIPLOMAT AVERELL HARRIMAN SHE HAS NO DIPLOMATIC EXPERIENCE OF HER OWN AND WILL BE GOING TO PARIS AT A TIME OF RISING TRADE TENSIONS BETWEEN THE US AND FRANCE US OFFICIALS ALSO SAY THE WHITE HOUSE INTENDS TO GIVE STUART EIZENSTAT AN AMBASSADORIAL POST SOMEWHERE IN EUROPE MR EIZENSTAT WHO WAS PRESIDENT CARTER'S DOMESTIC POLICY ADVISER WAS CONSIDERED AN EXCELLENT CANDIDATE FOR A JOB IN THE CLINTON ADMINISTRATION AND IT HAS SURPRISED MANY IN POLITICAL CIRCLES THAT THE WHITE HOUSE HASN'T YET FOUND HIM A POST MR EIZENSTAT PLAYED A ROLE BEHIND THE SCENES IN THE CAMPAIGN SERVING AS AN INFORMAL POLICY ADVISER HE ALSO SPOKE ON BEHALF OF MR CLINTON OFTEN TO JEWISH GROUPS BUT HIS BIGGEST IMPACT MAY HAVE BEEN A 30PAGE MEMO HE WROTE IN OCTOBER OUTLINING HOW A WHITE HOUSE SHOULD OPERATE INCLUDING THE ROLES OF THE CHIEF OF STAFF AND OTHER AIDES AND THE NEED FOR THE PRESIDENT TO CONTROL APPOINTMENTS IT WAS LITERALLY USED ABOUT LIKE A BIBLE SAID ONE PERSON WHO READ IT IN ADDITION FORMER NEW YORK CONGRESSMAN STEPHEN SOLARZ IS SAID TO BE A CANDIDATE FOR EITHER INDIA OR ISRAEL MR CLINTON HAS A HIGH REGARD FOR MR SOLARZ AT ONE POINT HE SAID MR SOLARZ WAS ONE OF TWO PEOPLE HE WOULD TURN TO FOR ADVICE ON FOREIGN POLICY THE OTHER WAS STROBE TALBOTT NOW OVERSEEING FINANCIAL AID TO THE FORMER SOVIET UNION IT IS UNDERSTOOD THAT MR CHRISTOPHER IS FAR LESS FOND OF THE FORMER CONGRESSMAN HOWEVER JUST AFTER THE ELECTION MR SOLARZ CAMPAIGNED FOR AN ADMINISTRATION POST HE DINED WITH AL FROM DIRECTOR OF THE DEMOCRATIC LEADERSHIP COUNCIL AND A CLOSE CLINTON ALLY IN THE HOUSE DINING ROOM AND WAS OVERHEARD SAYING HE WANTED TO BE AMBASSADOR TO INDIA ISRAEL OR JAPAN STILL ANY APPOINTMENT FOR MR SOLARZ WILL HAVE TO WAIT UNTIL HE IS CLEARED OF ANY WRONGDOING IN CONNECTION WITH THE 743 CHECKS HE BOUNCED AT THE HOUSE BANK A SPECIAL COUNSEL LOOKING INTO POSSIBLE CRIMINAL VIOLATIONS AT THE HOUSE BANK HAS CLEARED MOST OF THE CONGRESSMEN WHO HAD OVERDRAFTS BUT MR SOLARZ IS AMONG A HANDFUL WHO HAVEN'T BEEN CLEARED AFTER PRESSURE FROM MASSACHUSETTS SEN EDWARD KENNEDY THE PRESIDENT WILL NOMINATE MR KENNEDY'S SISTER JEAN KENNEDY SMITH TO BE AMBASSADOR TO IRELAND SEN KENNEDY IS CHAIRMAN OF THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE WHICH WILL CONSIDER A NUMBER OF THE PRESIDENT'S DOMESTIC PROGRAMS INCLUDING HEALTHCARE REFORM AND HIS NATIONAL SERVICE PLAN MS SMITH HAS BEEN INVOLVED IN CHARITABLE WORK INCLUDING SOME IN IRELAND SHE LIVES IN NEW YORK AND SHE WON THE POST OVER FORMER MASSACHUSETTS CONGRESSMAN BRIAN DONNELLY WHO HAD BEEN SUPPORTED BY HOUSE SPEAKER THOMAS FOLEY HER EXPECTED NOMINATION WAS REPORTED IN YESTERDAY'S BOSTON GLOBE 9303110057 930311 COFFEE EXCHANGE MAKES SURPRISE BID TO TAKE OVER COMMODITY EXCHANGE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE COFFEE SUGAR & COCOA EXCHANGE IN NEW YORK LAUNCHED A SURPRISE COUNTERBID YESTERDAY FOR THE COMMODITY EXCHANGE THE STRUGGLING NEW YORK FUTURES MARKET IN GOLD SILVER AND COPPER THAT IS CURRENTLY NEGOTIATING A DEAL TO BE SUBSUMED BY THE CHICAGO BOARD OF TRADE THE COFFEE EXCHANGE ARGUING THAT AT LEAST 7 MILLION IN ANNUAL SAVINGS WOULD RESULT FROM THE TAKEOVER PRESENTED THE OFFER TO COMEX CHAIRMAN DONNA REDEL MINUTES BEFORE SHE BEGAN A PREVIOUSLY SCHEDULED COMEX BOARD MEETING BECAUSE OF THE MEETING MS REDEL AND OTHER COMEX BOARD MEMBERS COULDN'T BE REACHED FOR COMMENT LATE WEDNESDAY THE OFFER WOULD MAKE COMEX A WHOLLYOWNED SUBSIDIARY OF THE COFFEE EXCHANGE WHICH WOULD TAKE OVER ITS MANAGEMENT AN ATTEMPT TO MERGE THE COFFEE EXCHANGE AND THE COMEX FAILED LAST YEAR AND CURRENT PLANS TO MERGE THEIR CLEARING OPERATIONS AND TO MOVE TO A NEW JOINT FACILITY WERE ALL BUT DERAILED BY THE BID TO ACQUIRE COMEX MADE BY THE CBOT THE WORLD'S LARGEST FUTURES EXCHANGE THAT BID HOWEVER HAS RUN INTO OPPOSITION FROM COMEX FLOOR MEMBERS WHO SEE IT AS GROSSLY ONESIDED THE CBOT IS PUTTING UP NO MONEY FOR CONTROL OF THE COMEX AND IT ISN'T ALLOWING COMEX MEMBERS TO TRADE IN CHICAGO'S INTERESTRATE AND AGRICULTURAL FUTURES HOWEVER THE COFFEE EXCHANGE'S OFFER DOESN'T PROVIDE ANY CASH FOR THE TAKEOVER EITHER NOR DOES IT ALLOW THE TWO EXCHANGES TO TRADE EACH OTHER'S PRODUCTS ONE OF THE WAYS THE COFFEE EXCHANGE'S BID DIFFERS IS IN OFFERING TO BUY BACK AND RETIRE COMEX SEATS CURRENTLY TRADING AT AROUND 46000 AT A MINIMUM OF 40000 PER SEAT WITH 6 MILLION OF EXISTING COMEX FUNDS TO BE DEDICATED TO THAT PURPOSE AMONG OTHERS THE CHICAGO BOARD OF TRADE PROPOSAL WHICH ONE COMEX TRADER DESCRIBED AS MORIBUND ALSO PROVIDES FOR THE CREATION OF A TRUST FUND AT AROUND 10 MILLION TO BE ESTABLISHED WITH COMEX'S ASSETS TO BUY OUT ANY COMEX MEMBERS WHO WANTED TO SELL THEIR SEATS BUT NO GUARANTEED MINIMUM PRICE FOR A SEAT IS OFFERED WE BELIEVE THAT THIS PROPOSAL WOULD MAKE THE CSCE AND COMEX MARKETS MORE EFFICIENT AND COSTEFFECTIVE WITH THE BENEFITS BEING SHARE EQUITABLY WROTE CHARLES H FALK CHAIRMAN OF THE COFFEE EXCHANGE IN A LETTER TO MS REDEL AT THE SAME TIME IT WILL KEEP COMEX MARKETS AND CONTROL OVER THOSE MARKETS FIRMLY WITHIN THE NEW YORK COMMODITY COMMUNITY MR FALK WAS ALLUDING TO CONCERNS OF MANY COMEX MEMBERS THAT THE CBOT DESPITE PROMISES TO KEEP EXISTING CONTRACTS HERE IN NEW YORK WANTS ULTIMATELY TO MOVE TRADING PRODUCTS TO CHICAGO 9303110056 930311 FOREIGN EXCHANGE DOLLAR IS MIXED YEN'S FALL CONTINUES IN MEANDERING MARKET SHORT ON NEWS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STARVED FOR NEWS ON WHICH TO MOVE THE MARKET MEANDERED IN NARROW TRADING RANGES WEDNESDAY THE DOLLAR ENDED MIXED AND THE YEN CONTINUED TO FALL ACROSS THE BOARD AS INVESTORS TOOK PROFITS DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16663 MARKS DOWN FROM 16670 LATE TUESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11805 YEN UP FROM 11775 YEN STERLING WAS TRADING AT 14330 DOWN FROM 14395 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11805 YEN AND AT 16628 MARKS DESPITE ITS GAINS AGAINST THE YEN WEDNESDAY DEALERS SAID THE DOLLAR REMAINS A CAPTIVE IN ITS RECENT TRADING BANDS MARKET'S LETHARGY IS CITED THE MARKET DOESN'T SEEM TOO ENTHUSIASTIC ABOUT TRYING EITHER SIDE OF THE RANGE SAID ERIK LEHTIS A VICE PRESIDENT AT CREDIT AGRICOLE CNCA IN NEW YORK MEANWHILE IN EUROPE THE NETHERLANDS BELGIUM AND DENMARK EACH LOWERED KEY INTEREST RATES IN MOVES SEEN AS INDICATIVE OF THE GERMAN MARK'S WANING STRENGTH BUT THE RATE CUTS FAILED TO EASE MUCH PRESSURE IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM WHERE FRENCH AND SPANISH INTEREST RATES ARE STILL BEING HELD AT PAINFULLY HIGH LEVELS BY THE GERMAN CENTRAL BANK'S RELUCTANCE TO BROADLY EASE MONETARY POLICY BANQUE NATIONALE DE BELGIQUE BELGIUM'S CENTRAL BANK CUT ITS DISCOUNT RATE 025POINT TO 725 NEDERLANDSCHE BANK THE DUTCH CENTRAL BANK ALSO REDUCED ITS THREE OFFICIAL INTEREST RATES 025 POINT WITH THE DISCOUNT RATE CUT TO 725 THE OFFICIAL RATE ON SECURED ADVANCES TO 775 AND THE PROMISSORY NOTE RATE TO 825 DANMARKS NATIONALBANK THE CENTRAL BANK OF DENMARK LOWERED ITS KEY SECURITIES REPURCHASE OR REPO RATE TO 115 FROM 12 THE RATE WAS ALSO CUT LAST WEEK WHEN IT WAS LOWERED TO 12 FROM 125 BOND MARKETS IN BELGIUM THE NETHERLANDS AND DENMARK WERE CHEERED BY THE CUTS WITH PRICES OF MOST LONGDATED GOVERNMENT BONDS GAINING 035 POINT TO 050 POINT BOND PRICES IN GERMANY ALSO FIRMED AROUND 040 POINT SHARE PRICES ON THE BRUSSELS STOCK EXCHANGE FINISHED UP ABOUT 11 WHILE DUTCH EQUITIES FIRMED AROUND 17 THE DOLLAR IS HOLDING ONTO MOST OF THE GAINS IT PICKED UP AFTER AN UNEXPECTEDLY STRONG REPORT ON US EMPLOYMENT LAST FRIDAY DEALERS NOTED BUT PLAYERS HAVEN'T FOUND ANY NEW REASONS TO BUY THIS WEEK PEOPLE ARE STILL MINDFUL OF THE STRONG UNEMPLOYMENT NUMBERS FRIDAY BUT IN THE ABSENCE OF ANY FURTHER STATISTICS TO KEEP THE MOMENTUM GOING THE DOLLAR'S JUST CONSOLIDATING A BIT SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK A TORRENT OF TESTIMONY FROM US FEDERAL RESERVE OFFICIALS ALONG WITH THE FED'S REGULAR BEIGE BOOK REPORT ON ECONOMIC ACTIVITY SHED LITTLE NEW LIGHT ON THE US ECONOMIC RECOVERY DEALERS SAID THE OVERALL PICTURE THERE WAS PRETTY MUCH WHAT WE'VE ASSESSED OVER THE PAST FEW MONTHS MR PETTIT SAID THE FED REPORT SAID ECONOMIC GROWTH CONTINUED IN EARLY 1993 WITH THE PRONOUNCED WEAKNESS IN NEW ENGLAND AND CALIFORNIA FADING SOMEWHAT THE REPORT SAID MR PETTIT CONTAINED NOTHING THAT'S GOING TO MAKE THE FED CHANGE THEIR STANCE FRANK PUSATERI A VICE PRESIDENT AT BANK OF BOSTON SAID MORE AND MORE THE FUNDAMENTAL IMPROVEMENT IN THE ECONOMY GRUDGINGLY SLOW AS IT IS IS STARTING TO HAVE SOME EFFECT SUPPORTING THE DOLLAR BUT DEALERS SAID THE DOLLAR'S SHARPEST MOVE WEDNESDAY A BRIEF SURGE TO THE DAY'S HIGH OF 11853 YEN EARLY IN NORTH AMERICAN TRADING CAME AS THE RESULT OF TECHNICAL FACTORS IN ADDITION DEALERS NOTED THE LATEST REVELATION IN JAPAN'S WIDENING POLITICAL CORRUPTION SCANDAL HAS SHAKEN INVESTOR CONFIDENCE IN JAPAN JAPANESE INVESTIGATORS FOUND STASHES OF CASH GOLD AND SECURITIES VALUED AT BILLIONS OF YEN IN THE HOME AND OFFICES OF SHIN KANEMARU UNTIL LAST YEAR A LEADING FIGURE IN THE RULING LIBERAL DEMOCRATIC PARTY MR KANEMARU WAS ARRESTED SATURDAY ON CHARGES OF TAX EVASION APPARENTLY ON ILLEGAL POLITICAL ACCOUNTS THE YEN'S WEAKNESS ALSO SHOWED UP AGAINST THE MARK WEDNESDAY DEALERS NOTED LATE IN NEW YORK THE MARK WAS QUOTED AT 7084 YEN UP FROM 7066 YEN TUESDAY TECHNICAL RESISTANCE AROUND 7110 YEN STALLED THE MARK'S ADVANCE WEDNESDAY DESPITE THE WIDESPREAD YEN SELLING DEALERS SAID THE MARK WAS MIXED AGAINST OTHER CURRENCIES WEDNESDAY ADDING TO PARTICIPANTS' UNCERTAINTY ABOUT THE MARKET'S DIRECTION 9303110055 930311 DEBT RATINGS RAISED FOR CZECH REPUBLIC NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED ITS DEBT RATING FOR THE CZECH REPUBLIC CITING LESS UNCERTAINTY ABOUT THE REPUBLIC'S CREDITWORTHINESS THE CZECH REPUBLIC'S DEBT WAS UPGRADED TO BAA3 FROM BA1 AND THE 300 MILLION EUROBOND OF THE CZECH NATIONAL BANK DUE 1996 WAS ASSIGNED A BAA3 RATING THE RATINGS AGENCY ALSO SAID IT UPGRADED TO BAA3 THE 200 MILLION EUROBOND ISSUE OF STATNI BANKA CESCHOSLOVENSKA NOW JOINTLY AND SEVERALLY GUARANTEED BY THE CZECH AND SLOVAK REPUBLICS MOODY'S CITED THE SMOOTH SEPARATION OF THE TWO REPUBLICS ON JAN 1 AND THE CZECH REPUBLIC'S PROGRESS IN MOVING TOWARD A MARKET SYSTEM A SMALL BUDGET DEFICIT A RELATIVELY LOW UNEMPLOYMENT RATE AND MODERATE INFLATION ALSO AFFECTED THE RATINGS CHANGES THE CURRENT ACCOUNT WHICH HAD A SURPLUS IN 1991 AND 1992 MAY MOVE INTO A DEFICIT BUT THE COUNTRY IS EXPECTED TO RECEIVE SIGNIFICANT AMOUNTS OF FOREIGN DIRECT INVESTMENT MOODY'S SAID CONSEQUENTLY THE EXTERNAL DEBT BURDEN SHOULD REMAIN COMPARATIVELY LOW THE RATINGS AGENCY ADDED HOWEVER THAT THE REPUBLIC'S TRANSITION TO A MARKET ECONOMY WAS STILL INCOMPLETE AND THE COSTS OF DISMANTLING THE STATE SECTOR COULD PROVE HIGH 9303110054 930311 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA DE CV MEXICAN PHONE FIRM POSTS 12 RISE IN 1992 NET INCOME TELEFONOS DE MEXICO SA DE CV REPORTED THAT CONSOLIDATED PROFIT ROSE 12 IN 1992 NET INCOME TOTALED 77 BILLION PESOS 248 BILLION OR 72640 PESOS A SHARE UP FROM 69 BILLION PESOS OR 65346 PESOS A SHARE IN 1991 THE MEXICAN PHONE COMPANY WHICH HAS BEEN THRIVING WITH MEXICO'S BUSINESS BOOM SAID IT BASED ITS RESULTS ON GENERALLY ACCEPTED US ACCOUNTING PRINCIPLES TELMEX PREVIOUSLY REPORTED THAT CONSOLIDATED REVENUE FOR THE YEAR TOTALED 207 BILLION PESOS THE COMPANY SAID IT HAD 1058 BILLION WEIGHTED AVERAGE COMMON SHARES OUTSTANDING IN 1992 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TELMEX SHARES ROSE 125 CENTS TO 53875 9303110053 930311 ECONOMY DEMOCRATS SEEK TO EXPAND CUTS IN CLINTON PLAN WHITE HOUSE INDICATES IT MIGHT NOT SPEND ALL OF STIMULUS PACKAGE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BRUSHING OFF REPUBLICAN CHARGES OF GIMMICKRY CONGRESSIONAL DEMOCRATS MOVED FORWARD ON BUDGET PROPOSALS REFLECTING PRESIDENT CLINTON'S DESIRE TO INCREASE SPENDING ON FAVORED PROGRAMS WHILE STILL CUTTING THE DEFICIT BY ROUGHLY 500 BILLION OVER FIVE YEARS THE ACTION CAME AS THE WHITE HOUSE SIGNALED ITS WILLINGNESS TO CONSIDER DELAYING THE IMPLEMENTATION OF SOME OF ITS 163 BILLION ECONOMICSTIMULUS PACKAGE NOW PENDING ON CAPITOL HILL MODERATE AND CONSERVATIVE DEMOCRATS HAVE PRESSED FOR SUCH A MOVE MOST RECENTLY AT A WHITE HOUSE MEETING TUESDAY TO DEMONSTRATE CONGRESS'S COMMITMENT TO CURBING THE DEFICIT IT'S SOMETHING WE WANT TO EXPLORE FURTHER SAID WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS EVEN IF SUCH A DELAY OCCURRED IT WOULD BE LARGELY SYMBOLIC MR CLINTON'S BUDGET SHOWS THAT ONLY 8 BILLION OF THE 163 BILLION IN STIMULUS SPENDING WOULD ACTUALLY BE SPENT BEFORE OCT 1 THE HOUSE BUDGET COMMITTEE ON A 2617 PARTYLINE VOTE LAST NIGHT APPROVED A DEMOCRATIC PLAN TO MAKE UP THE SHORTFALL BETWEEN THE PRESIDENT'S STATED DEFICITREDUCTION GOAL AND THE AMOUNT THE CONGRESSIONAL BUDGET OFFICE SAYS HIS PROPOSALS WOULD ACHIEVE THE PLAN PREPARED BY CHAIRMAN MARTIN SABO D MINN CALLS FOR 62 BILLION IN SPENDING CUTS BEYOND THOSE RECOMMENDED BY THE WHITE HOUSE FOR THE NEXT FIVE YEARS INCLUDING 35 BILLION FROM DISCRETIONARY SPENDING AND 2 BILLION FROM MANDATORY PROGRAMS IN THE FISCAL YEAR BEGINNING OCT 1 SENATE BUDGET COMMITTEE DEMOCRATS MEANWHILE UNVEILED THEIR OWN PROPOSAL TO IMPROVE ON MR CLINTON'S DEFICITCUTTING PROPOSALS BY A SIMILAR AMOUNT CHAIRMAN JAMES SASSER'S FIVEYEAR PROPOSAL WOULD CUT SPENDING BY AN ADDITIONAL 41 BILLION WHILE INCREASING TAXES 22 BILLION BY CURBING DEDUCTIONS FOR UPPERINCOME TAXPAYERS THE DEMOCRATIC PLAN ALSO ASSUMES 30 BILLION IN REDUCED FEDERAL BORROWING COSTS IN CLAIMING TOTAL DEFICIT REDUCTION OF 502 BILLION OVER FIVE YEARS BUT DEMOCRATS ON BOTH COMMITTEES WOULDN'T PROVIDE MUCH DETAIL ON WHICH PROGRAMS THEY WOULD CUT THEY ARGUED ACCURATELY THAT BUDGET RESOLUTIONS TRADITIONALLY ARE BLUEPRINTS THAT DON'T LIST SPECIFIC PROGRAM CUTS THE PROBLEM IS THAT PRESIDENT CLINTON LAID OUT A HIGHER STANDARD FOR THIS YEAR'S DEBATE IN CHALLENGING CRITICS TO OFFER SPECIFIC ALTERNATIVES FRUSTRATED REPUBLICANS CRITICIZED DEMOCRATS FOR THEIR VAGUENESS YOU FOLKS FLUNKED THE TEST SAID OHIO REP JOHN KASICH THE HOUSE COMMITTEE'S RANKING REPUBLICAN WHO OFFERED A DETAILED PROGRAMBYPROGRAM PLAN TO CUT 429 BILLION IN SPENDING OVER FIVE YEARS ON THE SENATE PANEL REPUBLICAN PHIL GRAMM OF TEXAS BLASTED DEMOCRATS FOR CLAIMING 44 BILLION IN DEFICIT REDUCTION THAT'S ALREADY REQUIRED UNDER CURRENT LAW CALLING IT THE SAME OLD SMOKEANDMIRRORS PHONY DOCUMENT THAT WE'VE LOOKED AT IN THE PAST YET THE GOP MINORITY LACKED THE VOTES TO CHANGE ANYTHING MR KASICH'S ALTERNATIVE WAS DEFEATED ON A VOTE ALONG PARTY LINES WITH ONE EXCEPTION MODERATE REPUBLICAN RICK LAZIO OF NEW YORK JOINED DEMOCRATS IN OPPOSING IT A SERIES OF INDIVIDUAL GOP AMENDMENTS WERE ALSO DEFEATED BY A SOLID DEMOCRATIC BLOC DEMONSTRATING MR SABO'S SUCCESS IN CRAFTING A PROPOSAL TO HOLD HIS PARTY'S LIBERAL AND CONSERVATIVE FACTIONS TOGETHER IN THE SENATE PANEL WHERE THE DEMOCRATIC MAJORITY IS SHAKIER CHAIRMAN SASSER PROPOSED CUTTING ABOUT 10 BILLION MORE FROM EXISTING PROGRAMS AND DEFERRING ABOUT 31 BILLION OF THE 144 BILLION IN INVESTMENT SPENDING THAT MR CLINTON HAS PROPOSED OVER FIVE YEARS MR SASSER'S TASK WAS COMPLICATED BY FARM STATE DEMOCRATS' COMPLAINTS THAT AGRICULTURAL CUTS ALREADY PROPOSED BY MR CLINTON WENT TOO DEEP FORCING THE CHAIRMAN TO INCREASE FARM SPENDING BY 23 BILLION OVER THE ADMINISTRATION REQUEST SUCH TRADEOFFS FORESHADOW INTENSE POLITICAL FIGHTS TO COME IN THE APPROPRIATIONS PROCESS EVEN THOUGH NEITHER COMMITTEE SPECIFIED CUTS THEY ARE SETTING DISCRETIONARY SPENDING CAPS THAT WOULD ULTIMATELY PIT DEFENSE DOMESTIC PROGRAMS AND MR CLINTON'S INVESTMENTS AGAINST EACH OTHER IN COMPETITION FOR SCARCE DOLLARS THE HOUSE AND SENATE PROPOSALS EACH PRESENT SOME POLITICAL PROBLEMS FOR THE WHITE HOUSE THE HOUSE VERSION WOULD CUT AN ADDITIONAL 870 MILLION FROM DEFENSE IN 1994 AND LIMIT COSTOFLIVING ADJUSTMENTS FOR FEDERAL CIVILIAN AND MILITARY RETIREMENT BENEFITS MR CLINTON HAS SAID HE WON'T ACCEPT DEFENSE CUTS BEYOND THOSE HE HAS ALREADY OUTLINED AND HE AVOIDED TOUCHING RETIREES' COST ADJUSTMENTS IN HIS OWN BUDGET MR SASSER'S PLAN IS ALREADY DRAWING GOP FIRE FOR INCLUDING ANOTHER TAX INCREASE IT WOULD CAP THE VALUE OF TAX DEDUCTIONS AT 31 EVEN FOR HIGHINCOME TAXPAYERS WHOSE MARGINAL RATES WOULD RISE TO 36 OR 396 UNDER MR CLINTON'S PLAN FOR A COUPLE WITH TAXABLE INCOME OF 175000 CLAIMING 35000 IN DEDUCTIONS THE PROPOSAL WOULD INCREASE THEIR TAX BILL 1750 9303110052 930311 BUSINESS BRIEF FUQUA INDUSTRIES INC FITNESS EQUIPMENT MAKER WILL BE ACQUIRED BY FIRM FUQUA INDUSTRIES INC AN ATLANTA HOLDING COMPANY WITH INTERESTS IN SPORTS EQUIPMENT AND PHOTOFINISHING SAID IT SIGNED A LETTER OF INTENT TO BUY DIVERSIFIED PRODUCTS CORP A PRIVATELY HELD MAKER OF FITNESS AND RECREATION EQUIPMENT IN OPELIKA ALA TERMS WEREN'T DISCLOSED FOR THE DEAL WHICH IS EXPECTED TO CLOSE IN MIDAPRIL THE ACQUISITION BRINGS THE COMPANY A STEP CLOSER TO BEING A DOMINANT FORCE IN THE SELLING EQUIPMENT FOR LIFE SPORTS SUCH AS WALKING SWIMMING CYCLING AND TENNIS THE COMPANY ESTIMATES THIS A QUICKLY GROWING 65 BILLION MARKET FUELED BY BABY BOOMERS HITTING MIDDLE AGE FUQUA SAID THE TRANSACTION HAS BEEN APPROVED BY WESTINGHOUSE CREDIT CORP A UNIT OF WESTINGHOUSE ELECTRIC CO WHICH HOLDS THE MAJORITY OF DIVERSIFIED'S DEBT AND MUCH OF THE COMPANY'S PREFERRED STOCK 9303110051 930311 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 310 90 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 316 30 DAYS 317 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 305 ONE MONTH 310 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 308 120 DAYS 311 150 DAYS 313 180 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 722 60 DAYS 734 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 720 60 DAYS 730 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 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 9303110050 930311 LEISURE & ARTS BOOKSHELF THOSE DEADLY BUGS BY MICHAEL WALDHOLZ ANYONE KNOCKED DOWN BY THIS WINTER'S FLU KNOWS WELL THE MIGHT OF A COMMON CONTAGIOUS YET NEARLY INVISIBLE VIRUS THE FEVER CHILLS ACHES AND RESPIRATORY CONGESTION THAT OCCUR AS THE BODY FIGHTS OFF THE VIRAL ATTACK IS ABOUT THE SICKEST MOST HEALTHY PEOPLE EVER GET YET ONLY A DECADE OR SO AGO IT SEEMED THAT HUMAN CONQUEST OF VIRAL MICROBES SUCH AS THOSE UNDERLYING THE FLU AND COMMON COLD WAS JUST AROUND THE NEXT SCIENTIFIC CORNER IT'S TAKEN AIDS TO REMIND US OF THE MURDEROUS POTENTIAL OF A VIRUS AND IN A DANCING MATRIX VOYAGES ALONG THE VIRAL FRONTIER KNOPF 269 PAGES 23 ROBIN MARANTZ HENIG PROVIDES CONVINCING EVIDENCE THAT MORE THAN ANY OTHER THING WITH WHICH WE HUMANS SHARE THE PLANET THE VIRUS DESERVES OUR RESPECT AND UNDERSTANDING MS HENIG A SKILLED MEDICAL AND SCIENCE WRITER ILLUSTRATES THE VIRAL MENACE THROUGH A SERIES OF CHILLING TALES THESE ARE ESPECIALLY COMPELLING WHEN SHE USES THE DETECTIVESTORY TECHNIQUE SO APPLICABLE TO THE SUDDEN APPEARANCE OF A MYSTERIOUS INFECTIOUS DISEASE SUCH AS THE STRANGE OUTBREAK OF A MAD COW ILLNESS IN GREAT BRITAIN IN THE 1980S OR EVEN SCARIER THE RAMPAGING HUMAN DESTRUCTION WROUGHT BY ONE OF THE MANY VIRUSES THAT ARE AWAKENING IN TROPICAL JUNGLES AS IF FROM AN ETERNITY OF SLEEP LOITERING INSIDIOUSLY ABOUT MS HENIG'S INQUIRY IS ALWAYS THE SPECTER OF AIDS A LETHAL BUG THAT UNLIKE ANY SEEN BEFORE CLEVERLY SURVIVES BY ATTACKING THE SHIELD WE HUMANS CARRY AGAINST MOST OTHER VIRUSES OUR IMMUNE SYSTEM THE COMMON DREAD AND CURIOSITY ABOUT AIDS IS SURELY THE REASON THE BOOK WAS COMMISSIONED AND WHY MANY WILL READ IT AIDS FRIGHTENS US SO ONE SCIENTIST TELLS THE AUTHOR BECAUSE IT MAKES US WONDER WHAT OTHER CATASTROPHES ARE WAITING TO POUNCE ON US IN A CHAPTER EARLY ON MS HENIG DISCUSSES THE MANY CONVENTIONAL HYPOTHESES ABOUT HOW THE AIDS VIRUS EMERGED SHE ARGUES PERSUASIVELY THAT THE VIRUS EXISTED FOR AGES IN HARMONY WITH THOSE LIVING IN THE SUBTROPICAL AFRICAN FOREST AND SHE WRITES IT ONLY FLARED UP AS A RESULT OF UNPRECEDENTED CHANGES IN HUMAN BEHAVIOR THESE INCLUDE THE SUDDEN MIGRATION OF PEOPLE FROM THE JUNGLE INTO CITIES PLAGUED BY POVERTY CROWDING POOR HYGIENE AND THE BREAKDOWN OF AGEOLD SEXUAL MORES AS WELL AS THE INADVERTENT PASSING OF TAINTED BLOOD THROUGH THE MULTIPLE USE OF INTRAVENOUS NEEDLES BY MEDICAL PERSONNEL MS HENIG SAYS THE VIRUS'S MAJOR ROUTE OUT OF AFRICA WAS IN THE BLOOD OF HAITIAN PROFESSIONALS WHO WERE INVITED TO ZAIRE TO HELP MODERNIZE THAT COUNTRY IN THE EARLY '70S AND FROM HAITI THE VIRUS JUMPED TO THE US AND EUROPE THROUGH GAY MEN VACATIONING IN THE CARIBBEAN ISLAND BUT IN A DANCING MATRIX THE AIDSVIRUS STORY SERVES MOSTLY AS A PARADIGM FOR A LARGER LESSWELLKNOWN STORY THE RELEASE OF VAST NUMBERS OF PREVIOUSLY HIDDEN VIRUSES FROM THE WORLD'S TROPICAL RAIN FORESTS MS HENIG DESCRIBES RESEARCH SHOWING THAT MANY OF THESE VIRUSES LIKE THE ONE UNDERLYING AIDS HAD LIVED QUIETLY IN BALANCE WITH THEIR ENVIRONMENT FOR EONS BUT THROUGH CHANGES IN HUMAN ACTION SUCH AS THE THINNING OF THE FORESTS VIRAL BUGS HAVE BEEN CARRIED INTO NEW ECOLOGICAL MILIEUS AND HAVE BECOME DANGEROUSLY ACTIVE IN A FRIGHTENING DISCUSSION MS HENIG TELLS THE STORY OF LETHAL ARBORVIRUSES THAT WHEN PASSED FROM ONE PERSON TO ANOTHER MOSTLY THROUGH BODILY FLUIDS UNLEASH AN ALMOST OTHERWORLDLY INFECTION CAUSING RAPID HEMORRHAGING OF BLOOD THE STORY IS TOLD BY FOLLOWING THE PIONEERING INVESTIGATIONS OF A BRILLIANT YOUNG SCIENTIST STEPHEN MORSE WHO HAS HELPED PUBLICIZE THE RECENT APPEARANCE OF THESE DEADLY BUGS BY UNCOVERING SPORADIC BUT TERRIFYING INCIDENTS IN WHICH THESE VIRUSES HAVE SOMEHOW MADE THEIR WAY INTO DEVELOPED COUNTRIES INCLUDING THE US AFFLICTED MONKEYS FROM THAILAND MAY HAVE ACCOUNTED FOR ONE CASE AS IMPORTANTLY MS HENIG EXPLAINS THAT THESE NEWLY IDENTIFIED MICROBES ARE MERELY THE MORE DANGEROUS OF THE MILLIONS OF VIRUSES THAT HAVE LIVED PEACEABLY IN TANDEM WITH THE PLANT AND ANIMAL WORLD INCLUDING HUMANS SINCE THE VERY FIRST DAYS OF PLANETARY LIFE VIRUSES ARE BITS OF PRIMITIVE GENETIC MATERIAL WRAPPED IN PROTEIN ENVELOPES WHOSE SOLE AGENDA IS TO REPRODUCE THEY DO SO BY INSINUATING THEMSELVES INTO TARGET CELLS FORCING THE INVADED CELL TO MAKE NEW COPIES OF THE VIRUS AND THEN REPEATING THE CYCLE OFTEN KILLING THE HOST CELLS AFTER REPRODUCTION IS ACCOMPLISHED MEDICINE MOSTLY FAILS AGAINST VIRUSES ALREADY ENTRENCHED IN THIS CYCLE OFTEN BECAUSE A VIRUS'S GREATEST SURVIVAL SKILL IS ITS ABILITY TO ADAPT BY MUTATING IN THE FACE OF A THREAT SUCH AS A DRUG THE BEST ANTIVIRAL THERAPIES ARE VACCINES THAT PRIME THE BODY'S IMMUNE SYSTEM TO CAST OUT INVADING VIRUSES BEFORE THEY TAKE HOLD WHILE MOST VIRAL ENCOUNTERS ARE BENIGN SOME CAN CREATE GENETIC CHANGES IN THE TARGET HOST ONE OF EVOLUTION'S MOST CRUCIAL TOOLS INDEED THE SURPRISING ROLE OF VIRUSES IN NATURE IS ONE CENTRAL THEME OF THIS BOOK MS HENIG WRITES THAT SOME VIRAL ENCOUNTERS ARE INDEED HAZARDOUS TO HUMANS MS HENIG ARGUES IS OFTEN SIMPLY BECAUSE PEOPLE HAVE PUT THEMSELVES IN SOME DANGEROUS VIRUS'S WAY HER BOOK IS A WONDERFULLY WELLWRITTEN SIMPLY STATED AND OFTEN DRAMATIC EXPLANATION OF THIS SINGLE FACT AND WHAT IT MEANS TO FUTURE PUBLIC HEALTH THE ENVIRONMENT AND THE FUTURE OF THE PLANET MR WALDHOLZ WRITES ABOUT SCIENCE AND HEALTH FOR THE JOURNAL AND IS COAUTHOR OF THE BOOK GENOME 9303110049 930311 POLITICS & POLICY CLINTON SEEKING HELP FOR ECONOMIC PLAN MULLS ENERGYTAX BREAK ON ETHANOL SOME NATURAL GAS BY DAVID ROGERS AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS REFINING HIS ENERGY TAX MORE SPECIFICALLY PLANNING EXCEPTIONS TO IT TO BROADEN THE COALITION BEHIND HIS LARGER ECONOMIC PROGRAM LOOKING FOR VOTES FROM FARM BELT SENATORS THE WHITE HOUSE IS TALKING ABOUT EXEMPTING POLITICALLY POWERFUL ETHANOL INTERESTS FROM THE LEVY SUCH CORPORATIONS AS ATLANTIC RICHFIELD CO WHICH HAS ENDORSED THE TAX WANT ADJUSTMENTS REGARDING THE TREATMENT OF NATURAL GAS CONSUMED IN THE PRODUCTION OF OIL FROM ALASKA'S NORTH SLOPE NEW ENGLAND IS LOOKING FOR CONCESSIONS ON THE RATE CHARGED ON HOME HEATING OIL AND WHEN OHIO DEMOCRATS MET YESTERDAY THE TREASURY DEPARTMENT SENT A REPRESENTATIVE TO HEAR CONCERNS DRIVEN IN PART BY THE STATE'S COAL AND ALUMINUM INDUSTRIES EXPANDING THE TAX PROPOSAL'S SUPPORT AMONG BUSINESSES AND LAWMAKERS IS CRUCIAL GIVEN THE PUBLIC'S OPPOSITION TO IT IN A NEW WALL STREET JOURNAL/NBC NEWS POLL ONLY 35 OF AMERICANS SUPPORT THE ENERGY TAX WHILE 62 OPPOSE IT THE ADMINISTRATION HAS USED ITS POLITICAL MUSCLE TO FACE DOWN SOME VESTED INTERESTS SUCH AS THE AMERICAN PETROLEUM INSTITUTE BUT THE VERY BREADTH OF THE ENERGY TAX OFFERS MR CLINTON AMPLE OPPORTUNITIES TO REACH OUT TO DISPARATE INTERESTS THE WHITE HOUSE'S IMPLICIT MESSAGE IS THAT PROBLEMS CAN BE RESOLVED IN RETURN FOR SUPPORT BUT PROBLEMS WILL LINGER FOR THOSE WHO JUMP OFF IN OPPOSITION THE DEVIL IS IN THE DETAILS SAYS WASHINGTON LOBBYIST JOEL JANKOWSKY A FORMER HOUSE LEADERSHIP AIDE YOU'D BETTER GET YOUR DETAILS STRAIGHT BECAUSE THIS ONE'S GOING THROUGH THE ENERGY TAX WHICH IS BASED ON THE HEAT CONTENT OF FUELS AS MEASURED IN BRITISH THERMAL UNITS BTUS IS DESIGNED TO RAISE 7144 BILLION OVER FIVE YEARS THESE REVENUES ARE CRUCIAL TO THE ADMINISTRATION'S DEFICITREDUCTION PLAN AND THE WHITE HOUSE IS HITTING HARD THE THEME OF SELFSACRIFICE IN TRYING TO SELL IT TO CONGRESS AND THE PUBLIC I'M A TEXAN AND I'M NOT SCARED OF THIS ENERGY TAX BECAUSE IT'S FAIR TREASURY SECRETARY LLOYD BENTSEN TOLD AN AUDIENCE IN HIS HOME STATE THE DAY AFTER PRESIDENT CLINTON UNVEILED HIS ECONOMIC PLAN BUT BY THE SAME TOKEN THE IMMENSE SET OF ISSUES RAISED BY THE PROPOSAL CUT ACROSS PARTY LINES RAISING ECHOES OF LONGAGO DEBATES OVER THE 1970SERA ENERGY PRICE CONTROLS AND WINDFALLPROFITS TAX EXEMPTIONS FOR ONE SECTOR CAN TIP THE BALANCE FOR OTHERS AS WAS EVIDENT IN THE HOUSE WAYS AND MEANS COMMITTEE APPEARING BEFORE THE PANEL SECRETARY BENTSEN ACKNOWLEDGED THAT THE ADMINISTRATION HAD AGREED TO A ONEYEAR DELAY FOR A PORTION OF THE TAX AFFECTING HOME HEATING OIL AN ISSUE OF IMPORTANCE TO SUCH NEW ENGLAND LAWMAKERS AS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE BUT TEXAS DEMOCRATIC REP JJ PICKLE A SENIOR MEMBER OF WAYS AND MEANS WHO HAS BEEN AT ODDS WITH MR MITCHELL IN THE PAST OBSERVED IF WE START MAKING EXCEPTIONS MR SECRETARY WE'RE GOING TO ASK FOR EXCEPTIONS IN OUR PART OF THE COUNTRY TOO AMONG OTHER DANGERS OF COURSE IS THAT EXCEPTIONS REDUCE THE ESTIMATED TAKE OF THE TAX MAKING IT THAT MUCH HARDER TO REACH MR CLINTON'S DEFICITREDUCTION GOALS ONE OF THE MOST SENSITIVE OPTIONS UNDER CONSIDERATION IS THAT AFFECTING ETHANOL THE INDUSTRY IS DOMINATED BY ARCHER DANIELS MIDLAND CO WHICH ACCORDING TO A RECENT COMMON CAUSE SURVEY GAVE THE PRESIDENT'S CAMPAIGN AND THE DEMOCRATIC NATIONAL COMMITTEE 45000 IN SOFT MONEY CONTRIBUTIONS FUNDS NOT RESTRICTED BY FEDERAL CAMPAIGN SPENDING LIMITS ADM'S CHAIRMAN DWAYNE ANDREAS HAS STRONG POLITICAL CONNECTIONS WITH DEMOCRATS AND REPUBLICANS ALIKE WHEN THE TREASURY DEPARTMENT RELEASED ITS SUMMARY EXPLANATION OF THE ENERGY TAX LAST MONTH ETHANOL WAS LISTED AS BEING SUBJECT TO THE LEVY MEANWHILE THOUGH FARMSTATE LAWMAKERS HAVE EXERTED STRONG PRESSURE ON THE ADMINISTRATION OVER THE ENERGY TAX WORRIED ABOUT ITS IMPACT ON FERTILIZER AND TRANSPORTION COSTS SOPHISTICATED LOBBIES SUCH AS THE FERTILIZER INSTITUTE HAVE HAMMERED AT THE TAX PROPOSAL WITH COST FIGURES SHOWING THE LEVY WILL BE AN IMMENSE BURDEN TO GRAIN FARMERS MAKING CONCESSIONS ON ETHANOL AS WELL AS PROPANE FUEL USED FOR RURAL HEATING AND DRYING CROPS WOULD BE A WAY TO SOFTEN THE FARMSTATE BLOW AND HOLD DEMOCRATS IN LINE WE'RE LOOKING FOR SWEETENERS TO HELP THE MEDICINE DOWN SAYS SOUTH DAKOTA REP TIM JOHNSON WHO HAS RAISED THE ISSUE DIRECTLY WITH AGRICULTURE SECRETARY MIKE ESPY MR JOHNSON'S SOUTH DAKOTA COLLEAGUE SEN THOMAS DASCHLE A MEMBER OF THE FINANCE COMMITTEE HAS ALSO MADE HIMSELF HEARD AND THE FARMSTATE DEMOCRATS ARE OPTIMISTIC OF REACHING AN ACCORD WITH THE ADMINISTRATION THE TREASURY DEPARTMENT IS WORKING WITH US SAYS DEMOCRATIC SEN JAMES EXON OF NEBRASKA AN IMPORTANT SWING VOTE ON THE BUDGET COMMITTEE THE ADMINISTRATION'S POLITICAL PROBLEMS IN THE FARM BELT ARE COMPOUNDED BY THE DEFICITCONSCIOUSNESS OF MANY MIDWEST DEMOCRATS THE INCREASED SPENDING IN MR CLINTON'S PROGRAM MAKES IT HARDER TO WIN SUPPORT FOR A NEW TAX LIKE THE ENERGY LEVY WHICH NEVER FIGURED IN HIS CAMPAIGN HE DOES HAVE A POSTELECTION MANDATE FOR SPENDING CUTS AND TAX INCREASES SAYS SEN ROBERT KERREY OF NEBRASKA HE GOT THAT IN A BOLD AND REFRESHING WAY BUT AS TO THE SPECIFIC BTU TAX THERE IS NO MANDATE WE HAVE TO LOOK AT ITS IMPACT THE TREASURY SEES ITSELF AS RESPONDING BOTH TO THESE POLITICAL CALCULATIONS AND TO HEAD OFF LEGITIMATE GRIPES FROM INDUSTRY GROUPS THE BEST WAY TO MAKE SURE YOU DON'T LOSE VOTES ON THIS IS TO MAKE THE TAX BULLETPROOF EXPLAINS ONE OFFICIAL WHILE THE TREASURY AND ENERGY DEPARTMENTS HAVE TAKEN THE LEAD IN REACHING OUT TO INDUSTRY GROUPS WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY HAS EMERGED AS A MAJOR ASSET BECAUSE OF HIS PREVIOUS CAREER AS A NATURALGAS COMPANY EXECUTIVE MACK MCLARTY IS PROBABLY AS SENSITIVE TO THIS AS ANY MAN ALIVE SAYS OKLAHOMA DEMOCRATIC REP MIKE SYNAR ARCO WHOSE CHIEF EXECUTIVE OFFICER LODWRICK COOK WAS A CLOSE ALLY OF FORMER PRESIDENT BUSH IS AN EXAMPLE OF HOW THE ADMINISTRATION HOPES TO REACH OUT TO THE ENERGY INDUSTRY IN TREASURY MEETINGS ARCO HAS NOTED THAT IMPOSING THE TAX AS CRUDE OIL ARRIVES AT THE REFINERY WOULD RAISE A WHOLE SET OF ISSUES ABOUT HOW TO TREAT SUCH ADDITIVES AS METHYL TERTIARY BUTYL ETHER WHICH IS USED TO OXYGENATE FUEL SO IT CAN MEET FEDERAL CLEAN AIR ACT REQUIREMENTS MOREOVER COLLECTING THE TAX AT THAT POINT WOULD MAKE IT IMPOSSIBLE UNDER INTERNATIONAL TRADING RULES FOR THE US TO ASSESS LEVIES AGAINST IMPORTED PETROLEUM PRODUCTS SUCH AS GASOLINE AND HEATING OIL IN TESTIMONY SECRETARY BENTSEN LAID THOSE CONCERNS TO REST STATING FLATLY THAT THE TAX WILL BE LEVIED AS OIL LEAVES THE REFINERY OTHERWISE YOU RUN INTO SOME SERIOUS PROBLEMS ON INTERNATIONAL COMPETITION HE SAID ARCO HAS ANOTHER CONCERN TOO WITH A STAKE IN ALASKA'S GIANT PRUDHOE BAY FIELD IT FEARS IT MAY BE PENALIZED BECAUSE OF LARGE QUANTITIES OF NATURAL GAS THAT COME TO THE SURFACE AS OIL THERE IS RETRIEVED THE GAS ITSELF ISN'T SOLD BUT SOME OF IT IS BURNED TO HELP REINJECT THE REST BACK INTO THE GROUND TAXING FUEL USED IN THE PRODUCTION OF FUEL ASSERTS RICHARD SAWAYA ARCO'S DIRECTOR OF GOVERNMENT AND TAX AFFAIRS WOULD ADD AN EMBEDDED COST THAT OTHER PRODUCTS DON'T CARRY PINNING DOWN THE POINT AT WHICH THE TAX IS COLLECTED IS ALSO AN ISSUE FOR OTHER INDUSTRIES AFTER INITIAL INTERNAL WRANGLING THE NATURAL GAS INDUSTRY PULLED TOGETHER TO REQUEST THAT THE ADMINISTRATION SHIFT THE TAX FROM THE PIPELINE TO END USERS MEANWHILE JUST YESTERDAY AFTERNOON COAL INTERESTS WEIGHED IN WITH MEETINGS WITH CONGRESSIONAL TAX OFFICIALS AMONG THOSE REPRESENTED WERE ZEIGLER COAL HOLDING CO WHICH RECENTLY ACQUIRED SHELL OIL CO'S MINING SUBSIDIARY PEABODY HOLDING CO THE NATION'S LARGEST COAL PRODUCER AND THE NATIONAL COAL ASSOCIATION THEY ARGUED THAT COLLECTING THE ENERGY TAX AT THE MINE MOUTH WOULD RESULT IN AN UNINTENDED COMPOUNDED PRICE INCREASE FOR COAL BECAUSE THE LEVEL OF ROYALTY PAYMENTS AND SEVERANCE TAXES OWED BY PRODUCERS IS BASED ON THE PRICE OF COAL AT THE MINE MOUTH ADMINISTRATION OFFICIALS AT LEAST SEEM TO BE OPEN TO INDUSTRY COMPLAINTS SAYS WALKER NOLAN EXECUTIVE VICE PRESIDENT AT THE EDISON ELECTRIC INSTITUTE JOHN BUCKLEY OF THE NEW ENGLAND FUEL INSTITUTE ALSO GOT A PROMPT REACTION WHEN HE CALLED FOR A MEETING WITH THE ADMINISTRATION'S ENERGYTAX LIAISON OPERATION THIS WEEK JUST IN CASE THOUGH MR BUCKLEY AND MAINE HEATINGOIL DEALERS ALSO MET LAST FRIDAY IN PORTLAND WITH SEN MITCHELL HE WAS VERY SYMPATHETIC MR BUCKLEY SAYS I DON'T ASK HIM WHO HE TALKS TO BUT HE TALKS TO THE HIGHEST LEVELS THE TREASURY DEPARTMENT PROJECTS THAT BY FISCAL 1996 PRESIDENT CLINTON'S PROPOSED ENERGY TAX WOULD ADD 9303110048 930311 COUNTERPOINT WE NEED TO UNEARTH ENVIRONMENTAL FELONS BY JONATHAN TURLEY ENVIRONMENTAL CRIME IS A SUBJECT THAT SEEMS TO WORK REMARKABLE CHANGES ON CONSERVATIVE POLITICIANS AND COMMENTATORS ALIKE MENTION ENVIRONMENTAL CRIME AND SUDDENLY OUR MOST DETERMINED ANTICRIME WARRIORS BECOME UNABASHED CONSCIENTIOUS OBJECTORS RECENTLY THE EDITORS OF THE WALL STREET JOURNAL QUESTIONED THE VERY CONCEPT OF AN ENVIRONMENTAL CRIME AND WARNED THAT THE NEW ADMINISTRATION SHOULD RESIST THIS MOVEMENT BEFORE EXECUTIVES AND FARMERS ARE CHARGED WITH CRIMINAL ACTS IT SEEMS THAT THERE ARE LIMITS TO THE WAR ON CRIME UNFORTUNATELY THERE ARE NO SUCH LIMITS TO THE VICTIMS OF ENVIRONMENTAL CRIME IN NEW YORK A GROUP OF EIGHTHGRADERS ON A FIELD TRIP CAME ACROSS NUMEROUS BROKEN VIALS OF BLOOD LYING ALONG A PUBLIC BEACH TESTING LATER REVEALED THAT SOME OF THESE VIALS CONTAINED BLOOD INFECTED WITH HEPATITIS B AN INFECTIOUS VIRUS THAT CAN CAUSE SERIOUS ILLNESS AND DEATH THE VIALS WERE LATER TRACED TO GERONIMO VILLEGAS THE COOWNER OF A BLOOD TESTING CENTER PROSECUTED FOR THE CRIME MR VILLEGAS ADMITTED THAT HE REGULARLY CLEARED OUT HIS LABORATORY BY DUMPING HUNDREDS OF SUCH VIALS INTO THE WATERWAY NEXT TO HIS APARTMENT COMPLEX MR VILLEGAS IS AN ENVIRONMENTAL FELON AND THERE ARE THOUSANDS LIKE HIM ACROSS THE COUNTRY MR VILLEGAS IS DIFFERENT HOWEVER IN ONE RESPECT HE WAS CAUGHT THE NUMBER OF ENVIRONMENTAL PROSECUTIONS IN THE PAST FEW YEARS FELL FAR SHORT OF THE BUSH ADMINISTRATION'S PROFESSED GET TOUGH ON CRIME POLICY DESPITE TWO YEARS OF INTENSE CONGRESSIONAL CRITICISM OF ITS FAILURE TO ENFORCE THESE LAWS THE JUSTICE DEPARTMENT HAS KEPT THE NUMBER OF PLEAS AND CONVICTIONS TO ROUGHLY 100 PER YEAR THIS MEANS THAT THE DEPARTMENT IS BARELY SECURING ONE PLEA OR CONVICTION PER US ATTORNEY'S OFFICE IN THIS COUNTRY OBVIOUSLY THERE IS HOPE THAT THIS RECORD WILL CHANGE WITH THE NEW ATTORNEY GENERAL AND HER COMMITMENT TO ENFORCEMENT ANY SHIFT TO ENFORCEMENT WAS MADE EASIER THIS WEEK WITH THE RELEASE FOR PUBLIC COMMENT OF NEW SENTENCING GUIDELINES FOR ENVIRONMENTAL CRIMINALS WHILE THE EDITORS OF THE JOURNAL INSIST THAT THEY WOULD SUPPORT PROSECUTING SIGNIFICANT AND CONSCIOUS ACTS OF ENVIRONMENTAL DEVASTATION THEIR SILENCE ON PAST CORPORATE MALFEASANCE IS DEAFENING CONSIDER THE CASE OF PUREGRO CORP PUREGRO WAS UNDER INDICTMENT FOR THE SPRAYING OF A POPULATED AREA WITH A HAZARDOUS SUBSTANCE JACK DOWNS A LOCAL RESIDENT MAY HAVE DIED FROM THE EXPOSURE AND 23 PEOPLE WERE INJURED FACING MAJOR FELONY CONVICTIONS THE COMPANY CALLED SENIOR OFFICIALS IN THE BUSH ADMINISTRATION WITHOUT INFORMING STATE OFFICIALS AND AGAINST THE ADVICE OF THEIR OWN PROSECUTORS IN THE FIELD TOP JUSTICE OFFICIALS CUT A DEAL WITH PUREGRO ALTHOUGH THE COMPANY HAD REPORTEDLY OFFERED TO PLEAD GUILTY TO A FELONY THE BUSH ADMINISTRATION APPARENTLY FELT THAT THIS WAS UNFAIR AND ACCEPTED A PLEA TO A SMALL MISDEMEANOR AND A 15000 FINE THE PUREGRO CASE IS ONLY ONE OF AS MANY AS 30 CASES IDENTIFIED BY CONGRESS THAT FOLLOW A PATTERN OF RELUCTANT PROSECUTION BY THE JUSTICE DEPARTMENT A RECENT CONGRESSIONAL REPORT CONFIRMED TWO EARLIER INVESTIGATIONS THAT FOUND A CULTURE AMONG HIGHLEVEL JUSTICE OFFICIALS TO TREAT ENVIRONMENTAL CRIMES DIFFERENTLY FROM OTHER TYPES OF CRIMINAL CONDUCT WHILE NEW SENTENCING GUIDELINES ARE LONG OVERDUE INCREASED PENALTIES WILL MEAN LITTLE UNLESS THEY ARE ACTUALLY APPLIED TO CRIMINALS ANY FELON CONSIDERS THE LIKELIHOOD OF CAPTURE AS WELL AS THE POTENTIAL PENALTY FOR A CRIME UNFORTUNATELY MOST ENVIRONMENTAL CRIMINALS TODAY ESCAPE INVESTIGATION LET ALONE PROSECUTION WITH FEWER THAN 100 CONVICTIONS OR PLEA BARGAINS A YEAR ENVIRONMENTAL CRIME NOT ONLY PAYS BUT PAYS WELL FOR MOST FELONS THERE IS AN OBVIOUS SOLUTION INCREASE THE CHANCES OF ARREST ONCE INDICTED 40 OF ENVIRONMENTAL FELONS PLEAD GUILTY AND THE VAST MAJORITY OF THE REMAINING CASES RESULT IN GUILTY VERDICTS INCREASING THE LIKELIHOOD OF ARREST IS SIMPLY A MATTER OF FULLY FUNDING THE ENFORCEMENT PROGRAMS AT THE FEDERAL BUREAU OF INVESTIGATION AND THE ENVIRONMENTAL PROTECTION AGENCY BOTH OF THESE AGENCIES HAVE BEEN REPEATEDLY DENIED RESOURCES TO INVESTIGATE ENVIRONMENTAL CRIME PROSECUTING ENVIRONMENTAL FELONS HAS ACTUALLY PROVED A WINDFALL FOR THE GOVERNMENT CURRENTLY EVERY 1 SPENT FOR PROSECUTION RESULTS IN A 24 RETURN TO THE GOVERNMENT THIS MONEY GOES INTO THE GENERAL GOVERNMENT COFFERS NOT BACK TO THE ENVIRONMENT IRONICALLY THIS LEAVES THE FEDERAL GOVERNMENT AS THE PRIMARY BENEFICIARY OF ENVIRONMENTAL CRIME AFTER THE FELON HIMSELF THE DRUG ENFORCEMENT AGENCY AND OTHER POLICE AGENCIES ARE ALLOWED TO RETAIN A LARGE PART OF THEIR CAPTURED CRIMINAL ASSETS TO FINANCE FURTHER INVESTIGATIONS AND PROSECUTIONS ENVIRONMENTAL CRIME SHOULD RECEIVE NO LOWER PRIORITY BY RETURNING MORE MONEY FOR THE PROTECTION OF THE ENVIRONMENT THE GOVERNMENT COULD ENSURE THAT ENVIRONMENTAL FELONS HELP FUND THE RESTORATION OF THE NATURAL RESOURCES AND COMMUNITIES THEY VICTIMIZE WITHOUT SUCH CHANGES USING NATURE AS A VEHICLE FOR CRIME IS STILL A SOUND BUSINESS DECISION IN MICHIGAN FOR EXAMPLE LAWRENCE WELSH ORDERED HIS EMPLOYEES TO ILLEGALLY DUMP HAZARDOUS WASTES AT A FLEA MARKET AND ALONG ROADSIDE DITCHES TWO VICTIMS WENT TO THE HOSPITAL AND THE FEDERAL GOVERNMENT SPENT TENS OF THOUSANDS OF DOLLARS CLEANING THE VARIOUS HAZARDOUS SITES FOR THESE OFFENSES MR WELSH WAS SENTENCED TO FOUR MONTHS IN PRISON LARGELY SUSPENDED AND A 1000 FINE THIS IS LESS THAN THE AVERAGE SENTENCE FOR CRIMINAL TRAFFIC OFFENSES ENVIRONMENTAL CRIMINAL PENALTIES PUNISH INDIVIDUALS AND CORPORATIONS BY CORRECTLY LABELING THEM AS CRIMINALS SOME CASES CLEARLY DO NOT WARRANT INCARCERATION BUT CRIMINAL PENALTIES ARE THE ONLY DETERRENT FOR SOME ENVIRONMENTAL FELONS MOREOVER EVEN SHORT INCARCERATION CANNOT BE DISMISSED AS A DETERRENT MANY CORPORATE OFFICERS VIEW CIVIL PENALTIES AS SIMPLY THE PRICE OF DOING BUSINESS PERSONAL INCARCERATION IS ANOTHER MATTER ENTIRELY NOTHING SERVES TO CONCENTRATE THE BUSINESS MIND MORE THAN A POTENTIAL PRISON STINT EVEN A BRIEF ONE EXPANDED CRIMINAL PENALTIES WOULD ADD VERY PERSONAL COSTS TO THE DECISION TO USE NATURE AS A VEHICLE FOR CRIME THEY WOULD ALSO BRING A NEEDED BALANCE IN OUR CRIMINAL JUSTICE SYSTEM FEW VIOLENT OFFENDERS COULD DO THE DAMAGE OF AN EXXON VALDEZ YET A PERSON WILL SPEND MORE TIME IN FEDERAL PRISON TODAY FOR WRITING A SINGLE BAD CHECK THAN FOR SEVERELY DAMAGING PRINCE WILLIAM SOUND NEW CRIMINAL PENALTIES WILL NOT END ENVIRONMENTAL CRIME BUT THEY WILL END THE FALSE DISTINCTIONS THAT HELP SUSTAIN IT MR TURLEY IS AN ENVIRONMENTAL LAW PROFESSOR AND DIRECTOR OF THE ENVIRONMENTAL CRIMES PROJECT AT GEORGE WASHINGTON UNIVERSITY 9303110047 930311 BUSINESS BRIEF EFI ELECTRONICS CORP FIRM EXPECTS EARNINGS DROP IN FISCAL FOURTH QUARTER EFI ELECTRONICS CORP SAID IT EXPECTS EARNINGS FOR THE FISCAL FOURTH QUARTER ENDING MARCH 31 TO BE LOWER THAN THE YEARAGO QUARTER'S IN THE FOURTH QUARTER OF FISCAL 1992 THE SALT LAKE CITY MAKER OF ELECTRICAL SURGE PROTECTION EQUIPMENT HAD EARNINGS OF ABOUT 93000 OR TWO CENTS A SHARE ON REVENUE OF ABOUT 3 MILLION THE COMPANY SAID REVENUE FOR THIS FISCAL YEAR'S FOURTH QUARTER WOULD BE FLAT EFI BLAMED A LARGER CYCLICAL DROP IN REVENUE PLUS LOWERTHANEXPECTED ORDERS FROM DISTRIBUTORS FOR THE WEAK FOURTHQUARTER SHOWING FOR ALL OF 1993 EFI SAID IT EXPECTS EARNINGS TO BE UP ABOUT 50 FROM 1992'S EARNINGS OF 397000 OR 14 CENTS A SHARE THE COMPANY SAID IT ALSO EXPECTS REVENUE FOR THE YEAR TO BE 20 HIGHER THAN 1992 REVENUE OF 119 MILLION 9303110046 930311 AT MAVERICKS GAMES SWISH' IS A SOUND OTHER TEAMS MAKE DALLAS BASKETBALL SQUAD COURTS WORSTEVER NBA RECORD EVEN FREE PIZZA CAN'T SCORE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS NOBODY WANTS TO LOSE TO THE DALLAS MAVERICKS WINNERS OF JUST FOUR OF 53 GAMES THE MAVERICKS INSPIRE A PERVERSE RESPECT IN THEIR NATIONAL BASKETBALL ASSOCIATION OPPONENTS RATHER THAN TAKE THE MAVS LIGHTLY TEAMS ARE GETTING UP TO PLAY THEM SAYS BILL CARTRIGHT OF THE CHICAGO BULLS THE REIGNING NBA CHAMPS NO ONE WANTS TO BE ONE OF THEIR VICTIMS THERE IS LITTLE TO FEAR THE MAVERICKS A COLLECTION OF CASTOFFS FROM OTHER TEAMS ARE WEAK ON DEFENSE AND EVEN WEAKER AT SCORING THE TEAM IS PITIED BY SOME OPPOSING STARS I PRAY FOR THEM SAYS CHARLES BARKLEY OF THE PHOENIX SUNS AND DURING A RECENT GAME MICHAEL JORDAN OF THE BULLS TOLD MAVERICKS COACH GAR HEARD TO HANG IN THERE ACTUALLY THE TEAM APPEARS TO BE DANGLING BY A THREAD THEY ARE THREATENING TO COMPILE THE WORST NBA RECORD EVER ECLIPSING THE 1973 PHILADELPHIA 76ERS WHO WON JUST NINE OF 82 GAMES AND THE MAVS AREN'T NEARLY AS GOOD AS WE WERE SAYS FRED CARTER THE TOP SCORER ON THAT PHILADELPHIA TEAM WHO IS NOW HEAD COACH OF THE 76ERS TO SURVIVE ON SUCH A TEAM TAKES A COMBINATION OF HUMILITY PERSEVERANCE AND THE COMFORT THAT COMES FROM NOT KNOWING ANYTHING BETTER SOME DON'T WANT TO STAY THE MAVS BEST PLAYER IS 31YEAROLD DEREK HARPER A 10YEAR VETERAN WHO WANTS TO BE TRADED RICHIE ADUBATO THE COACH FOR THE PAST THREE YEARS SAYS HE WAS RELIEVED WHEN HE WAS FIRED IN JANUARY AND THE TEAM'S TOP DRAFT PICK A COLLEGIATE STAR NAMED JIM JACKSON RELUCTANTLY JOINED THE CLUB LAST WEEK AFTER INSISTING FOR MONTHS THAT HE WOULD NEVER PLAY FOR THEM ONLY A SIXYEAR 19 MILLION CONTRACT CHANGED HIS MIND OWNER DON CARTER MEANWHILE SAYS THAT HIS PLANNED RESTRUCTURING OF THE TEAM IS RIGHT ON SCHEDULE THAT THE SWAPPING OF OLDER ACCOMPLISHED PLAYERS FOR YOUNG UNPROVEN HOOPSTERS IS THE ROAD TO RESPECTABILITY IN DALLAS THIS RISINGFROMTHEASHES SCENARIO STRIKES A CHORD FOUR SEASONS AGO THE COWBOYS WINNERS OF THIS YEAR'S SUPER BOWL NOTCHED ONE WIN MR CARTER TAKES SUCCOR IN THE REVIVAL OF THE NATIONAL FOOTBALL LEAGUE TEAM THERE'S A PRETTY GOOD DOSE OF HOPE IN THAT STORY HE SAYS FEW THINK THE MAVERICKS WILL RECOVER AS STUPENDOUSLY AS THE COWBOYS AS RECENTLY AS FIVE YEARS AGO THE MAVS WERE AMONG THE ELITE NBA TEAMS BUT FANS AND SPORTSWRITERS GENERALLY AGREE THAT YEARS OF BAD DRAFT PICKS THE LOSS OF A SUPERSTAR TO DRUG ABUSE AND SEVERAL MISERABLE TRADES COMBINED TO WEAKEN THE FRANCHISE FRUSTRATED FANS NOW BEG MR CARTER TO SELL THE TEAM ATTENDANCE IS DOWN ABOUT 20 THIS SEASON AND MANY TICKET HOLDERS SKIP GAMES ALTOGETHER THE PROMISE OF A FREE PIZZA HUT PIZZA TO THOSE ATTENDING A MAVERICKS VICTORY IS A HOLLOW ENTICEMENT I CAN'T EVEN GIVE THE MAVERICKS TICKETS AWAY ONE SEASONTICKET HOLDER SAID IN A RECENT LETTER TO THE DALLAS MORNING NEWS MOST PEOPLE LAUGH AT ME WHEN I OFFER THEM TICKETS AFTER A RECENT HUMILIATING 12388 LOSS TO THE BULLS YOU WONDER IF IT'S ALL WORTH IT SAYS MIKE IUZZOLINO WHO IS IN HIS SECOND YEAR WITH THE MAVERICKS PUTTING UP WITH WHAT THE MEDIA'S SAYING ABOUT YOU WHAT OTHER PLAYERS ARE SAYING ABOUT YOU EVEN SOMETIMES WHAT YOUR FRIENDS ARE SAYING ABOUT YOUR TEAM THAT HURTS FRIENDS AND LOVERS ARE YEARNING FOR THE TEAM'S FINAL CONTEST ON APRIL 24 ANGELA JONES FIANCE OF FORWARD TERRY DAVIS DREADS THE REMAINING GAMES BECAUSE I DON'T KNOW HOW BAD IT'S GOING TO GET NEITHER DO THE PLAYERS TO BANISH THE DEMONS THAT ARRIVE WITH EACH FRESH LOSS THEY RELY HEAVILY ON HUMOR SAYS RANDY WHITE A FOURTHYEAR FORWARD SOMETIMES YOU JUST HAVE TO LAUGH TO KEEP FROM CRYING WALTER BOND IS A FIRSTYEAR RESERVE GUARD WHO GIVES HIS TEAMMATES FREE HAIRCUTS LAST SUMMER HE WAS SO UNCERTAIN ABOUT HIS BASKETBALL FUTURE THAT HE TRIED OUT FOR THE MINNESOTA TWINS BASEBALL TEAM MR BOND'S CONFIDENCE SOMETIMES GETS THE BEST OF HIM IN AN EARLYSEASON GAME HE TRIED TO SHOOT THE BALL OVER AN IMPOSING OPPONENT THREE TIMES WITHIN A FEW SECONDS HIS SHOT WAS BLOCKED EACH TIME IT MIGHT'VE BEEN FOOLISH MR BOND ALLOWS BUT I WANTED TO SHOW HIM I'M THE KIND OF GUY WHO KEEPS AT IT DOUG SMITH IS THE TEAM'S SECONDHIGHESTPAID PLAYER A TOP COLLEGE PLAYER IN HIS SECOND SEASON MR SMITH ISN'T DOING SO WELL MR SMITH WHO ADMITTEDLY IS TENSE SEEMS PRONE TO INJURIES A SORE SHOULDER SIDELINES HIM ONE GAME WHICH PROMPTS A TEAMMATE TO TEASE HIM IN A LOUD FAKEANNOUNCER VOICE THE WORLD WANTS TO KNOW IS IT TRUE DOUG SMITH IS SOFT THE 6FOOT10 240POUND MR SMITH JUST SCOWLS THE MAVERICKS HAVE BEEN LARGELY SPARED THE DISSENSION THAT CAN BEDEVIL EVEN WINNING CLUBS MUCH OF THEIR ANGER IS DIRECTED AT REFEREES MR HARPER GOT SO MAD IN THE BULLS GAME THAT HE SCREAMED AT ONE REF YOU WANT TO BE MICHAEL JORDAN STILL SQUABBLES OCCASIONALLY ERUPT DURING ONE PRACTICE MR WHITE REFUSES TO TUCK HIS JERSEY INTO HIS PANTS FLOUTING A TEAM RULE AT ANOTHER MR DAVIS NEEDLES MR BOND ABOUT HOGGING THE BALL THEY BICKER UNTIL THE COACH SHOUTS CLOSE YOUR MOUTH AND PLAY WHEN THE ARGUING CONTINUES HE ORDERS EVERYONE TO RUN A PUNISHING SPRINT MR WHITE REFUSES PROMPTING AN OBSCENITYLACED REBUKE FROM THE COACH THE RIPENING IMAGE AS THE WORST TEAM EVER DOESN'T EXACTLY ATTRACT HANGERSON MR BOND SAYS HE CAN GO ANYWHERE IN DALLAS AND NOT BE RECOGNIZED SEAN ROOKS A ROOKIE CENTER CONSIDERS THE MAVS ALMOST LIKE A STEP DOWN FROM HIS UNIVERSITY OF ARIZONA TEAM WHERE PLAYERS WERE MOBBED EVERYWHERE THEY WENT GROUPIES ARE CONSPICUOUSLY ABSENT LIFE IN THE NBA DOES HAVE ITS REWARDS HOWEVER SINCE JOINING THE MAVS MR BOND HAS BEFRIENDED ANTOINETTE MAYO A GRADUATE OF HOWARD UNIVERSITY WHO WORKS FOR DR PEPPER IN DALLAS HE'S GLAMOROUS TO ME WITHOUT WINNING SHE SAYS THEN THERE IS THE MONEY EVEN THE LEAGUEMINIMUM SALARY OF 140000 A PITTANCE COMPARED WITH THE PAY OF STARS SEEMS LIKE A LOT TO MR BOND AND SEVERAL OTHER MAVS DURING THE SEASON THE CHECKS COME IN TWO MONTHLY INSTALLMENTS SO IT'S LIKE CHRISTMAS TWICE A MONTH HE SAYS MOST IMPORTANT PLAYING ON ANY NBA TEAM NO MATTER HOW BAD IS SOMETHING SPECIAL THERE ARE PROBABLY A MILLION GUYS AROUND THE WORLD PLAYING IN PARKS AND REC CENTERS SAYS MR WHITE WHO WOULD TRADE PLACES WITH US 9303110045 930311 BUSINESS BRIEF UGI CORP TERMS TO BUY PETROLANE GAS REVISED WITH BONDHOLDERS UGI CORP VALLEY FORGE PA SAID IT AGREED WITH BONDHOLDERS OF PETROLANE GAS SERVICE LP TO MODIFY THE TERMS UNDER WHICH UGI WOULD ACQUIRE THE PROPANEGAS MARKETER UNDER THE REVISED AGREEMENT UGI SAID HOLDERS OF PETROLANE'S 13 1/4 SENIOR SUBORDINATED DEBENTURES DUE 2001 WILL OWN 70 OF PETROLANE AFTER COMPLETION OF PETROLANE'S CHAPTER 11 REORGANIZATION PLAN AMERIGAS A UNIT OF UGI THAT IS ACQUIRING PETROLANE WOULD OWN THE REMAINING 30 PREVIOUS TERMS CALLED FOR AMERIGAS AND THE BONDHOLDERS TO HOLD AN EQUAL STAKE IN PETROLANE UGI IS A HOLDING COMPANY FOR AMERIGAS AND UGI UTILITIES INC A NATURAL GAS AND ELECTRIC UTILITY SEPARATELY PETROLANE SAID IT POSTED A FOURTHQUARTER LOSS OF 18 MILLION COMPARED WITH A LOSS OF 2435 MILLION A YEAR EARLIER WHEN IT WROTE DOWN 2138 MILLION IN GOODWILL REVENUE ROSE 5 TO 1983 MILLION FROM 1882 MILLION A YEAR AGO 9303110044 930311 TECHNOLOGY BRIEF HITACHI LTD JAPANESE FIRM MULLS PLAN TO PURCHASE PCS FROM IBM HITACHI LTD SAID IT IS STUDYING PLANS TO PROCURE LOWPRICED DESKTOP PERSONAL COMPUTERS FROM THE JAPANESE UNIT OF INTERNATIONAL BUSINESS MACHINES CORP THE DEVELOPMENT COMES AT A TIME WHEN PRICE COMPETITION ESPECIALLY FROM FOREIGN CONCERNS IS HEATING UP IN THE JAPANESE MARKETPLACE NEC CORP AND TOSHIBA CORP TWO LEADING JAPANESE COMPUTER MAKERS BOTH HAVE RESPONDED WITH NEW CUTRATE PCS IN RECENT MONTHS HITACHI SAID IT IS CONSIDERING BUYING IBM PS/V SERIES COMPUTERS THAT WOULD CARRY THE HITACHI NAMEPLATE THE JAPANESE CONCERN ALREADY HAS SUCH AN ARRANGED FOR IBM NOTEBOOK COMPUTERS A HITACHI SPOKESWOMAN SAID THAT BECAUSE OF THE TIME AND EXPENSE INVOLVED IN DEVELOPING LOWCOST PCS FOR LAUNCH QUICKLY GETTING SUPPLIES FROM IBM IS AN ATTRACTIVE ALTERNATIVE BUT SHE NOTED THAT HITACHI IS MOVING AHEAD WITH ITS OWN DEVELOPMENT OF INEXPENSIVE UNITS 9303110043 930311 APPLE'S CHAIRMAN DROPS OUT OF RACE FOR IBM'S TOP POST OTHERS REMAIN IN RUNNING BUT SHRINKING CANDIDATE POOL SUGGESTS SEARCH NEARS END BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL THE SHORT LIST IS GETTING SHORTER AT INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC'S HIGHPROFILE CHAIRMAN JOHN SCULLEY TOOK HIMSELF OUT OF THE RUNNING TO SUCCEED JOHN AKERS AS IBM'S CHIEF EXECUTIVE ONLY A DAY AFTER ALLIEDSIGNAL INC CHAIRMAN LAWRENCE BOSSIDY DID THE SAME THING BOTH MESSRS SCULLEY AND BOSSIDY HAD BEEN SEEN AS STRONG CANDIDATES FOR THE IBM HOT SEAT AND INSIDERS SAID THE COMPUTER GIANT HAD APPROACHED BOTH TO DETERMINE THEIR INTEREST TAKEN TOGETHER THEIR ACTIONS COULD INDICATE THAT THE SECRETIVE IBM SEARCH IS NEARING A CONCLUSION IBM WOULDN'T COMMENT AN APPLE SPOKESMAN SAID MR SCULLEY DECIDED TO RULE HIMSELF OUT OF THE IBM RACE BECAUSE OF INCREASING PRESS SPECULATION ABOUT HIS INTEREST IN THE JOB BUT IN FACT OTHER NAMES RECENTLY HAVE BECOME MORE PROMINENT IN IBM CHATTER THAN MR SCULLEY'S LOUIS GERSTNER OF RJR NABISCO HOLDINGS CORP GEORGE FISHER OF MOTOROLA INC AND MORTON MEYERSON OF PEROT SYSTEMS CORP MESSRS FISHER AND MEYERSON HAVE REPEATEDLY DECLINED TO COMMENT ON THE IBM SEARCH A REPRESENTATIVE OF MR GERSTNER ALSO DECLINED TO COMMENT APPLE ALWAYS MAINTAINED THAT ITS CHAIRMAN WOULD REMAIN IN CUPERTINO CALIF BUT PEOPLE CLOSE TO MR SCULLEY SAID HE CAREFULLY MULLED OVER THE PROSPECT OF TURNING AROUND APPLE'S TROUBLED RIVAL A TASK THAT WOULD RETURN HIM TO HIS EAST COAST ROOTS FINALLY MR SCULLEY RULED OUT A MOVE TO BIG BLUE BY SAYING IN A STATEMENT I AM NOT AVAILABLE OR INTERESTED IN BEING CEO OF IBM APPLE OFFICIALS POOHPOOHED THE NOTION THAT MR SCULLEY HADN'T MADE THE IBM SEARCH COMMITTEE'S FINAL CUT HE WAS NEVER INTERESTED IN THE JOB THEY ASSERTED INDEED MR SCULLEY HARDLY NEEDS THE GRIEF OF REVERSING IBM'S DISASTROUS RESULTS WHILE REPAIRING OR EVEN DISMANTLING THE COMPANY HE HAS PLENTY ON HIS PLATE RIGHT NOW HOBNOBBING WITH PRESIDENT CLINTON AND LUNCHING WITH HOLLYWOOD BIGWIGS SOME INDUSTRY ANALYSTS SAY HIS AMBITIONS INCLUDE A POLITICAL PLUM SUCH AS A SENATE SEAT OR CABINET APPOINTMENT MR SCULLEY ALSO CONTINUES TO RUN APPLE WHICH HE BELIEVES HE HAS POSITIONED TO CASH IN ON FUTURE TRENDS IN COMPUTING SUCH AS THE PREDICTED RISE OF PORTABLE COMMUNICATING DEVICES I BELIEVE APPLE HAS A TREMENDOUS OPPORTUNITY TO BE EXTREMELY SUCCESSFUL IN THE YEARS AHEAD AND APPLE WILL BE THE MOST IMPORTANT INNOVATOR AND LEADER IN THE INDUSTRY HE SAID IN HIS STATEMENT SEPARATELY HEWLETTPACKARD CO OFFICIALS AND SOURCES CLOSE TO THE IBM SEARCH DISCOURAGED THE IDEA THAT FORMER HP CHAIRMAN JOHN YOUNG IS A CLEAR FRONTRUNNER TO SUCCEED MR AKERS WHILE MR YOUNG COULDN'T BE REACHED FOR COMMENT A HP SPOKESWOMAN SAID HE'S HAPPILY RETIRED RIGHT NOW A REPORT IN USA TODAY TUESDAY QUOTED WALL STREET INSIDERS SAYING THE 60YEAROLD MR YOUNG HAS ALL BUT BEEN OFFERED THE JOB 9303110042 930311 INTERNATIONAL BRIEF SCANDINAVIAN AIRLINES SYSTEM NET LOSS WIDENED IN 1992 ON DROP IN CURRENCY VALUE SCANDINAVIAN AIRLINES SYSTEM REPORTED AN 849 MILLION KRONA 1114 MILLION LOSS FOR 1992 CITING FOREIGNEXCHANGE LOSSES FOLLOWING THE DEPRECIATION OF THE SWEDISH KRONA SAS SAID THE DROP IN THE KRONA'S VALUE TRANSLATED INTO A 115 BILLION KRONA CHARGE AGAINST 1992 EARNINGS IN 1991 SAS HAD A NET LOSS OF 61 MILLION OPERATING PROFIT BEFORE SUCH CHARGES AND BEFORE DEPRECIATION WAS UP 77 TO 293 BILLION KRONOR FROM 272 BILLION KRONOR IN 1991 AIRLINE OPERATING COSTS WERE DOWN 16 LAST YEAR SAS SAID HIGHER GROUP SALES AND IMPROVED RESULTS FROM SEVERAL SUBSIDIARIES ALSO CONTRIBUTED TO THE GROWTH IN OPERATING PROFIT SAS SAID REVENUE WAS UP 65 TO 3439 BILLION KRONOR FOR 1993 THE GROUP FORESEES CONTINUED SLOW MARKET GROWTH WITH MOUNTING PRESSURES FROM INCREASED COMPETITION AND LOWER FARES HOWEVER EFFICIENCY MEASURES WILL FURTHER REDUCE COSTS BY 20 TO 25 OVER THE NEXT TWO TO THREE YEARS AND SAS SAID IT EXPECTS SOME IMPROVEMENT IN 1993 PRETAX EARNINGS 9303110041 930311 BUSINESS BRIEF LA QUINTA MOTOR INNS INC BIL LTD WILL SELL ITS STAKE IN HOTEL RESTAURANT FIRM LA QUINTA MOTOR INNS INC SAID AN AFFILIATE OF BRIERLEY INVESTMENTS LTD AGREED TO SELL ITS APPROXIMATELY 19 STAKE IN LA QUINTA TO A NUMBER OF OTHER MAJOR SHAREHOLDERS IN A NEWS RELEASE THE SAN ANTONIO HOTEL AND RESTAURANT OPERATOR SAID HONG KONGBASED BIL LTD WILL SELL 25 MILLION SHARES TO INVESTORS INCLUDING THE BASS MANAGEMENT TRUST THE AIRLIE GROUP LP AND CLIENTS OF GEOCAPITAL CORP AMONG OTHERS WHO WEREN'T SPECIFIED BASS FAMILY MEMBERS AND GEOCAPITAL ARE ALREADY AMONG THE MAJOR SHAREHOLDERS THE TRANSACTION WAS PRIVATELY NEGOTIATED LA QUINTA'S STOCK CLOSED AT 29625 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9303110040 930311 BUSINESS BRIEFS AMERICAN RECREATION CENTERS INC FORMED A JOINT VENTURE MIDAMERICA ASSOCIATES WITH WILLIAM M KRATZENBERG AN ATLANTA INVESTOR TO ACQUIRE NEW BOWLING CENTERS OUTSIDE THE COMPANY'S CURRENT OPERATIONS AREAS IN CALIFORNIA AND TEXAS AL LABORATORIES INC'S BARRENATIONAL INC SUBSIDIARY ACQUIRED THE BUSINESS AND OPERATING ASSETS OF NASKA PHARMACAL CO FROM RUGBYDARBY GROUP COS TERMS WEREN'T DISCLOSED CALCOL INC SIGNED A 10YEAR AGREEMENT TO SUPPLY DELTA9 TETRAHYDROCANNABINOL A SYNTHETIC VERSION OF ONE OF THE ACTIVE INGREDIENTS IN MARIJUANA TO UNIMED INC TERMS WEREN'T DISCLOSED CALCOL SAID THE PRODUCT WILL BE USED BY UNIMED FOR THE MANUFACTURE OF ITS DRUG MARINOL FIRST SAVINGS BANK OF FOREST CITY ENTERED AN AGREEMENT TO MERGE WITH CENTURA BANKS INC CENTURA WILL ISSUE A YETTOBEDETERMINED NUMBER OF SHARES FOR FIRST SAVINGS GATES/FA DISTRIBUTING INC SIGNED A DISTRIBUTION PACT WITH SUMMIT MEMORY SYSTEMS INC TO SELL SUMMIT'S MINICARTRIDGE TAPE BACKUP SYSTEMS TERMS WEREN'T DISCLOSED KEMPER CORP AWARDED AMERICAN TELEPHONE & TELEGRAPH CO A FIVEYEAR 60 MILLION CONTRACT FOR A CUSTOMDESIGNED INTEGRATED VOICE AND DATA NETWORK LINKING 350 KEMPER OFFICES IN THE US CAMPBELL SOUP CO AGREED TO ACQUIRE FRAY BENTOS A BRAND OF CANNED MEATS IN THE UNITED KINGDOM FROM UNILEVER GROUP'S BROOKE BOND FOODS SUBSIDIARY TERMS WEREN'T DISCLOSED 9303110039 930311 BUSINESS BRIEF NORTHVIEW CORP COMPANY EXPECTS TO END BANKRUPTCY STATUS TODAY NORTHVIEW CORP OPERATOR OF 37 VAGABOND INN HOTELS IN CALIFORNIA AND RENO NEV SAID IT EXPECTS TO EMERGE FROM BANKRUPTCYLAW PROTECTION TODAY THE REORGANIZED COMPANY WILL CONCURRENTLY BE RENAMED VAGABOND INNS INC THE NEW OWNERS ARE THE COMPANY'S FORMER CREDITORS INCLUDING VARIOUS THRIFTS INVESTORS AND THE GOVERNMENT'S RESOLUTION TRUST CORP IT IS NOT A MATTER OF MAKING A COMEBACK BECAUSE WE HAVE NEVER LEFT THE COMMUNITY SAID TOM EVANS PRESIDENT AND CHIEF EXECUTIVE OFFICER IN SAN DIEGO VAGABOND INNS HAS OPERATED CONTINUOUSLY SINCE NORTHVIEW SOUGHT BANKRUPTCYLAW PROTECTION IN MARCH 1990 NORTHVIEW'S PREVIOUS OWNER WAS CALMARK FINANCIAL CORP A CLOSELY HELD REAL ESTATE DEVELOPER IN LOS ANGELES 9303110038 930311 THE LESSONS OF MARRIOTT BY KENNETH LEHN THIS WEEK MARRIOTT CORP'S ANGRY BONDHOLDERS GAVE A MIXED RECEPTION TO THE COMPANY'S ATTEMPT TO PLACATE THEM AND WARD OFF LAWSUITS OVER THE FIRM'S RESTRUCTURING PLANS MARRIOTT HAD ORIGINALLY STIRRED THE BONDHOLDERS' IRE WHEN IT ANNOUNCED A RESTRUCTURING LAST FALL THAT ISOLATED THE WEAKER PART OF THE COMPANY AND THE BONDHOLDERS FROM ITS MORE PROFITABLE MANAGEMENT SERVICE OPERATIONS THE BONDHOLDERS ARE CURRENTLY SEEKING MILLIONS IN DAMAGES AND AN INJUNCTION TO STOP THE RESTRUCTURING IN ITS PROPOSED FORM THE FIGHT HAS KINDLED AN OLD DEBATE ABOUT THE RIGHTS OF STOCKHOLDERS VS OTHER CORPORATE STAKE HOLDERS SUCH AS DEBTHOLDERS OR EMPLOYEES AT ISSUE IS A BASIC POLICY QUESTION WHAT LEGAL OBLIGATIONS DO COMPANIES HAVE BEYOND THEIR EXPLICIT CONTRACTS WHAT DID MARRIOTT DO LAST FALL IT PROPOSED TO DIVIDE ITSELF INTO TWO SEPARATE COMPANIES ONE COMPANY TO BE CALLED MARRIOTT INTERNATIONAL WOULD CONSIST PRIMARILY OF MARRIOTT'S HOTEL AND FOOD MANAGEMENT SERVICE OPERATIONS WHICH ARE HIGHLY PROFITABLE MOST OF THE OTHER COMPANY TO BE CALLED HOST MARRIOTT WOULD CONSIST OF MARRIOTT'S REALESTATE HOLDINGS WHICH HAVE LOST VALUE IN RECENT YEARS BOTH NEW COMPANIES WOULD TRADE ON THE NEW YORK STOCK EXCHANGE AND BOTH WOULD FILE SEPARATE QUARTERLY AND ANNUAL REPORTS MARRIOTT INTERNATIONAL WOULD BE LARGELY DEBTFREE MOST OF MARRIOTT'S 3 BILLION IN DEBT WOULD BECOME THE OBLIGATION OF HOST MARRIOTT THE STOCK MARKET VIEWED THE MARRIOTT PROPOSAL VERY FAVORABLY ON THE DAY THE SPINOFF WAS ANNOUNCED MARRIOTT'S STOCK PRICE INCREASED TO 1925 FROM 17125 THE STANDARD & POOR'S 500 INDEX FELL BY 07 THE SAME DAY THIS 12 ONEDAY RISE AMOUNTED TO AN INCREASE OF MORE THAN 200 MILLION IN THE VALUE OF MARRIOTT'S STOCK MARRIOTT'S STOCK PRICE HAS STAYED AT THIS HIGHER LEVEL CLOSING AT 2075 AT THE END OF 1992 YESTERDAY IT WAS AROUND 26 SHAREHOLDERS HAVE BENEFITED GREATLY BY CONTRAST THE VALUE OF MARRIOTT'S BONDS DECLINED SUBSTANTIALLY PRESS ACCOUNTS REPORT THAT THE VALUE OF TWO ISSUES OF MARRIOTT NOTES WITH A TOTAL FACE VALUE OF 400 MILLION DECLINED BY MORE THAN 30 AROUND THE ANNOUNCEMENT TO 750 FROM ROUGHLY 1100 PER NOTE THE MARKET PERCEIVED THAT THE DEFAULT RISK OF THE MARRIOTT NOTES WOULD INCREASE UNDER THE SPINOFF PROPOSAL DUE TO HOST MARRIOTT'S ENORMOUS DEBT OBLIGATIONS AND IT DEVALUED THESE NOTES ACCORDINGLY HENCE THE LAWSUITS BUT WHAT IN FACT ARE MARRIOTT'S LEGAL OBLIGATIONS TO ITS BONDHOLDERS BEYOND THOSE SPECIFIED IN THE BOND CONTRACT ITSELF WHILE IT IS UNDERSTANDABLE THAT BONDHOLDERS WOULD BE MIFFED OVER MARRIOTT'S ACTIONS THE TRADITION OF US CORPORATE LAW SUGGESTS THAT BONDHOLDERS ARE PROTECTED FROM EVENTS SUCH AS SPINOFFS ONLY IF THEY HAVE CONTRACTED EXPLICITLY FOR SUCH PROTECTION FOR EXAMPLE IN KATZ V OAK INDUSTRIES 1986 THE DELAWARE CHANCERY COURT WROTE THAT THE TERMS OF THE CONTRACTUAL RELATIONSHIP AGREED TO AND NOT BROAD CONCEPTS SUCH AS FAIRNESS DEFINE THE CORPORATION'S DUTY TO BONDHOLDERS IT WOULD BE UNWISE FOR THE COURTS TO DEVIATE FROM THIS TRADITION IN THE MARRIOTT CASE THE MARKET FOR BONDHOLDER PROTECTION WORKS QUITE WELL BONDHOLDERS ARE AWARE OF MYRIAD CORPORATE EVENTS THAT CAN REDUCE THE VALUE OF THEIR SECURITIES THEY CAN CHOOSE TO PROTECT THEMSELVES AGAINST THESE EVENTS BY INCLUDING PROTECTIVE COVENANTS IN THEIR BONDS A LARGE VARIETY OF COVENANTS EXIST IN BOND CONTRACTS INCLUDING PROTECTION AGAINST CHANGES IN CONTROL SOCALLED EVENTRISK COVENANTS SINCE PROTECTIVE COVENANTS RESTRICT THE ACTIONS OF CORPORATIONS BONDHOLDERS ARE CHARGED FOR THEM IN THE FORM OF LOWER INTEREST RATES ON THEIR BONDS ALTERNATIVELY IF INVESTORS CHOOSE TO BUY BONDS WITH FEWER PROTECTIVE COVENANTS THEY ARE COMPENSATED FOR BEARING MORE RISK IN THE FORM OF HIGHER INTEREST RATES THE PROTECTIVE COVENANTS IN THE MARRIOTT BONDS WERE QUITE SKIMPY THE MARRIOTT NOTES ISSUED IN THE SPRING OF 1992 FOR EXAMPLE DID NOT INCLUDE A DIVIDEND RESTRICTION WHICH IS A FAIRLY COMMON BOND COVENANT SUCH A COVENANT COULD HAVE PROTECTED MARRIOTT'S NOTE HOLDERS SINCE THE SPINOFF IS TO BE ACCOMPLISHED THROUGH A SPECIAL DIVIDEND TO STOCKHOLDERS MORE IMPORTANT THE NOTES DID NOT INCLUDE EVENTRISK COVENANTS WHICH MIGHT HAVE ALLOWED MARRIOTT'S NOTE HOLDERS TO REDEEM THEIR BONDS AT FACE VALUE OR A PREMIUM OVER FACE VALUE IN THE EVENT OF A SPINOFF SOME MIGHT ARGUE THAT IT IS UNREASONABLE TO EXPECT BONDHOLDERS TO HAVE ANTICIPATED A SPINOFF WHEN THEY BOUGHT THE BONDS BUT SPINOFFS ARE NOT ACTS OF GOD DOZENS OF SPINOFFS HAVE BEEN ANNOUNCED BY LARGE COMPANIES IN RECENT YEARS BONDHOLDERS WERE MADE AWARE OF EVENTRISK IN THE 1980S WHEN THEY FREQUENTLY SAW SECURITIES DECLINE WITH THE ANNOUNCEMENT OF LEVERAGED BUYOUTS OR RECAPITALIZATIONS MANY OF MARRIOTT'S BONDHOLDERS UNDOUBTEDLY HAVE HELD SIMILAR BONDS OF OTHER COMPANIES THAT HAVE NOT ENGAGED IN SPINOFFS OR OTHER RESTRUCTURINGS IN THESE CASES IS IT UNFAIR FOR THEM TO KEEP THE HIGHER INTEREST PAYMENTS THEY RECEIVED FOR BEARING THE RISK OF A RESTRUCTURING EVEN THOUGH THE DREADED EVENT NEVER OCCURRED IF NOT IS IT UNFAIR FOR MARRIOTT TO ANNOUNCE THE SPINOFF GRANTING EXTRACONTRACTUAL RIGHTS TO BONDHOLDERS WOULD THROW ROADBLOCKS IN THE WAY OF CORPORATE RESTRUCTURINGS THAT PROMOTE ECONOMIC EFFICIENCY SEVERAL STUDIES FIND THAT SPINOFFS HAVE ACTUALLY CREATED VALUE AND DO NOT SIMPLY REDISTRIBUTE WEALTH FROM BONDHOLDERS TO STOCKHOLDERS FIRST OUTSIDE INVESTORS OFTEN FIND IT DIFFICULT TO DISENTANGLE THE PERFORMANCE OF ONE DIVISION OF A COMPANY EG ITS REALESTATE HOLDINGS FROM THAT OF ANOTHER EG ITS HOTEL MANAGEMENT SERVICES BY CREATING PURE PLAYS SPINOFFS CAN IMPROVE THE QUALITY OF INFORMATION ABOUT THE PERFORMANCE OF EACH OF THE PREVIOUSLY MERGED ENTITIES WHICH IN TURN HELPS INVESTORS TO VALUE AND MONITOR THEM RJR NABISCO CITED THE ADVANTAGES OF PURE PLAYS LAST WEEK WHEN IT ANNOUNCED A PROPOSAL TO HAVE TWO SEPARATE CLASSES OF STOCK TRADING AGAINST ITS FOOD AND TOBACCO BUSINESSES SECOND SPINOFFS MAY IMPROVE THE EFFICIENCY WITH WHICH A FIRM'S ASSETS ARE MANAGED BY SPINNING OFF UNRELATED ASSETS MANAGERS OF LARGE DIVERSIFIED COMPANIES CAN CONCENTRATE ON THEIR CORE BUSINESSES IN THIS WAY SPINOFFS MAY ACCOMPLISH IN THE 1990S WHAT LEVERAGED BUYOUTS ACCOMPLISHED IN THE 1980S MORE STREAMLINED FOCUSED COMPANIES SPINOFFS ALSO MAY IMPROVE EFFICIENCY BY STRENGTHENING MANAGERIAL INCENTIVES TO MAXIMIZE VALUE AFTER SPINOFFS COMPENSATION PLANS CAN BE DESIGNED MORE EFFICIENTLY SINCE A MANAGER'S COMPENSATION CAN BE TIED TO CLEANER MEASURES OF COMPANY PERFORMANCE NAMELY STOCK PRICE AND ACCOUNTING EARNINGS BEFORE THE SPINOFF STOCK PRICE AND EARNINGS REFLECTED THE PERFORMANCE OF OTHER DIVISIONS NOT ONLY THE DIVISION IN QUESTION THERE IS ANOTHER REASON NOT TO DEVIATE FROM TRADITIONAL CORPORATE LAW IN THE MARRIOTT CASE PROVIDING BONDHOLDERS WITH PROTECTIONS THAT THEY DID NOT CONTRACT FOR COULD PAVE THE WAY FOR OTHER STAKE HOLDERS TO ASSERT SIMILAR CLAIMS EMPLOYEES FOR EXAMPLE COULD ARGUE THAT A SPINOFF OR SOME OTHER TYPE OF RESTRUCTURING HARMED THEM AND THAT THEY SHOULD BE COMPENSATED FOR THEIR LOSSES EVEN THOUGH THEIR LABOR CONTRACTS DO NOT CALL FOR SUCH COMPENSATION THE EFFICIENCY GAINS FROM CORPORATE RESTRUCTURING WOULD THUS BE DIMINISHED BY LITIGATION COSTS AND WOULD HAVE A CHILLING EFFECT ON MANAGERS IN SHORT MARRIOTT'S RESTRUCTURING SHOULD NOT BE THWARTED BY THE COURTS ON BEHALF OF DISGRUNTLED BONDHOLDERS WHO LOST OUT ON A RISK THEY KNEW THEY WERE TAKING MR LEHN FORMERLY CHIEF ECONOMIST AT THE SEC IS A PROFESSOR OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF PITTSBURGH 9303110037 930311 BUSINESS BRIEF WINGS HOLDINGS INC UNIONS STILL PREPARING REPLY TO NORTHWEST AIR'S PROPOSAL A COALITION OF SIX UNIONS AT NORTHWEST AIRLINES SAYS IT'S STILL WORKING ON A FORMAL RESPONSE TO THE AIRLINE'S OFFER LAST WEEK OF A 20 STAKE FOR EMPLOYEES IN RETURN FOR 883 MILLION IN UNION CONCESSIONS OVER THREE YEARS NORTHWEST THE STRUGGLING UNIT OF PRIVATELY HELD WINGS HOLDINGS INC TOLD THE UNIONS LAST WEEK THAT IT MUST HAVE YOUR AGREEMENT TO THIS OFFER BY YESTERDAY THE UNIONS HOWEVER DIDN'T RECOGNIZE THE COMPANY'S DEADLINE SAYING IN ST PAUL MINN THAT THEY NEEDED MORE TIME TO DEVELOP A COMPREHENSIVE RESPONSE IN THE MEANTIME THEY TOLD JOHN DASBURG NORTHWEST'S CHIEF EXECUTIVE OFFICER THAT THE PROPOSAL WAS WHOLLY UNACCEPTABLE AMONG OTHER THINGS THE UNIONS ARE SEEKING A GREATER EQUITY STAKE A NORTHWEST SPOKESMAN SAID WE'RE CONTINUING OUR COMMUNICATIONS AND MAKING PROGRESS TOWARD RESOLVING THE ISSUES 9303110036 930311 OTC FOCUS NASDAQ INDEX GAINS 057 TO 69287 ON GAINS IN HEALTH CARE BIOTECH ISSUES BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STRENGTH IN SOME HEALTH CARE AND BIOTECHNOLOGY STOCKS HELPED LIFT NASDAQ SHARES TO THEIR FOURTH STRAIGHT GAIN TRADERS CITED DEVELOPMENTS IN THE CLINTON ADMINISTRATION'S EFFORTS TO CRAFT A HEALTH CARE REVISION PLAN MEANWHILE THEY NOTED THAT THE GROUP HAD BEEN THE MOST BATTERED DURING A CORRECTION LAST MONTH AND WERE DUE FOR A CONTINUED RECOVERY THE NASDAQ COMPOSITE INDEX JUMPED 391 OR 057 TO 69287 ADVANCING ISSUES OUTPACED DECLINERS 1499 TO 1193 NASDAQ NATIONAL MARKET VOLUME INCHED UP TO 199750000 SHARES FROM 196210000 TUESDAY PRICES ALSO ADVANCED ON THE BIG BOARD THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 115 OR 046 TO 25136 WHILE THE DOW JONES INDUSTRIAL AVERAGE GAINED 622 OR 018 TO 347834 BOTH ENDING AT RECORDS FOR A THIRD CONSECUTIVE DAY AMONG MEDICALRELATED GAINERS WERE US HEALTHCARE A BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION WHICH ADDED 3 1/8 TO 46 5/8 CHIRON AN EMERYVILLE CALIF BIOTECHNOLOGY COMPANY WHICH JUMPED 3 3/8 TO 52 1/2 AND STRYKER A KALAMAZOO MICH MEDICAL DEVICE MAKER WHICH ADDED 1 3/8 TO 26 5/8 JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO SAID OPTIMISM ABOUT DRUG STOCKS ON THE BIG BOARD SPILLED OVER INTO NASDAQ ISSUES INVESTORS WERE ENCOURAGED BY REPORTS YESTERDAY MORNING THAT DRUG COMPANY EXECUTIVES HAVE VOLUNTEERED TO WORK WITH THE PRESIDENT IN DEVELOPING A WAY TO HOLD DOWN DRUG PRICES MANY HAVE BEEN CONCERNED THAT THE GOVERNMENT ON ITS OWN WOULD IMPOSE COSTCONTAINMENT INITIATIVES THAT WOULD DEPRESS PROFITS IN ADDITION TRADERS SAID INVESTORS WERE PLEASED BY NEWS IN THE AFTERNOON THAT A FEDERAL JUDGE HAD RULED THE ADMINISTRATION TASK FORCE WORKING ON THE HEALTH CARE REVAMP MUST ABIDE BY OPENMEETINGS LAWS MARK DONAHOE MANAGING DIRECTOR OF INSTITUTIONAL TRADING AT PIPER JAFFRAY SAID SOME BELIEVE THE ADDITIONAL PUBLIC SCRUTINY COULD LEAD TO A MORE PALATABLE PROGRAM OUTSIDE OF HEALTH CARE MARKET OBSERVERS SAID THERE WAS LITTLE TO CITE IN EXPLAINING THE CONTINUED BUYING PATRICK DAVIS HEAD OF NASDAQ TRADING AT SALOMON BROTHERS SAID SMALL STOCKS WERE STRONG IN PART BECAUSE THEY WERE PLAYING CATCH UP WITH BIG BOARD SHARES WHILE LARGER STOCKS HAVE PUSHED INTO RECORD TERRITORY THE NASDAQ COMPOSITE IS STILL NEARLY 16 POINTS OR 23 BELOW THE RECORD OF 70885 SET FEB 4 MARY FARRELL MARKET STRATEGIST AT PAINEWEBBER INC SAID SHE EXPECTS MORE ROCKY ACTION IN THE STOCK MARKET AS THE CLINTON INITIATIVES ON HEALTH CARE AND THE ECONOMY EVOLVE IT'S STILL GOING TO BE A ROLLER COASTER MARKET SHE SAID THE RIDE WAS STRAIGHT UP YESTERDAY FOR INVESTORS IN AN INITIAL OFFERING OF UNITS COMPRISED OF ONE COMMON SHARE AND TWO WARRANTS OF OUTTAKES INC A STARTUP PHOTOGRAPHY TECHNOLOGY CONCERN BASED IN SANTA MONICA CALIF THE UNITS PRICED AT 4 EACH LEAPT TO 11 1/4 THE COMMON TRADING SEPARATELY CLOSED AT 7 3/4 ON HEAVY VOLUME OF 43 MILLION SHARES ROBERT SHELTON OUTTAKES' PRESIDENT SAID THE OFFERING WILL GENERATE AT LEAST 59 MILLION IN NET PROCEEDS FOR THE CORPORATION WHICH IS JUST ONE YEAR OLD HAS NEVER GENERATED ANY SALES OR EARNINGS AND HAS YET TO OPEN ITS FIRST RETAIL LOCATION MR SHELTON SAID OUTTAKES HAS DEVELOPED A WAY TO USE DIGITAL TECHNOLOGY TO COMBINE PHOTOGRAPHIC IMAGES WHAT OUTTAKES PLANS TO DO WHEN IT OPENS ITS FIRST STORE THIS SPRING IS SPLICE PORTRAITS OF CUSTOMERS INTO CLASSIC MOVIE AND CARTOON SCENES HE SAID HE SAID THE COMPANY HAS LICENSING AGREEMENTS TO USE IMAGES FROM THE FILM LIBRARIES DEVELOPED BY COMPANIES INCLUDING PARAMOUNT COMMUNICATIONS AND HANNABARBERA MR SHELTON WOULDN'T COMMENT ON THE COMPANY'S EARNINGS EXPECTATIONS OR ITS TIMETABLE FOR OPENING ADDITIONAL RETAIL LOCATIONS HE SAID 22 MILLION OF THE OFFERING PROCEEDS IS EARMARKED FOR OPENING AS MANY AS FIVE SITES IN ADDITION OUTTAKES WILL SEEK OTHER WAYS TO USE ITS TECHNOLOGY SUCH AS IN CREATING ADVERTISING HE SAID THE OUTTAKES OFFERING WAS UNDERWRITTEN BY THE SMALL LAKE SUCCESS NY FIRM STRATTON OAKMONT INC ANOTHER IPO GAINED GROUND SCANDINAVIAN BROADCASTING ADVANCED TO 15 3/8 FROM ITS OFFERING PRICE OF 1350 A SHARE THE LUXEMBOURGBASED TELEVISION COMPANY WAS THE SUBJECT OF A FOUR MILLIONSHARE OFFERING INCLUDING 32 MILLION SOLD IN THE US AND CANADA CYTOGEN FELL 3/4 TO 13 AND BIOSURFACE TECHNOLOGY TUMBLED 2 3/8 TO 6 COWEN & CO LOWERED RATINGS ON BOTH STOCKS TO NEUTRAL FROM BUY CYTOGEN OF PRINCETON NJ AND BIOSURFACE OF CAMBRIDGE MASS ARE MEDICAL TECHNOLOGY CONCERNS JB HUNT LOST 1 1/2 TO 20 1/4 A MOVE THE LOWELL ARIZ TRUCKING COMPANY'S CHIEF FINANCIAL OFFICER JERRY WALTON ATTRIBUTED TO SELLING AMONG SEVERAL LARGE INSTITUTIONS THE SELLERS WEREN'T IDENTIFIED MR WALTON SAID THERE WERE NO FUNDAMENTAL DEVELOPMENTS TO EXPLAIN THE WEAKNESS DIVERSICARE JUMPED 2 TO 10 A MOVE ITS CHIEF FINANCIAL OFFICER MARY MARGARET HAMLETT WAS AT A LOSS TO EXPLAIN THE FRANKLIN TENN HOME HEALTH CARE SERVICE PROVIDER'S SHARES HAD LOST ABOUT 1 1/4 POINTS IN RECENT DAYS DESPITE A SOLID EARNINGS REPORT RELEASED LAST FRIDAY 9303110035 930311 BUSINESS BRIEF GW UTILITIES LTD MINORITY HOLDERS VOTE PLAN FOR O&Y TO BUY THEM OUT GW UTILITIES LTD'S MINORITY SHAREHOLDERS APPROVED A PLAN BY THE TORONTO COMPANY'S MAJORITY SHAREHOLDER OLYMPIA & YORK DEVELOPMENTS LTD TO BUY OUT THE MINORITY POSITION UNDER TERMS OF THE PLAN GW HOLDERS WILL RECEIVE 04112 SHARE OF HOME OIL CO FOR EACH GW SHARE HELD THE TRANSACTION WILL RESULT IN THE TRANSFER OF ABOUT 17 MILLION HOME OIL SHARES AND WILL REDUCE GW'S STAKE IN THE CALGARY ALBERTA OIL AND GAS CONCERN TO 364 FROM 407 THE TRANSACTION HAS AN INDICATED VALUE OF 257 MILLION CANADIAN DOLLARS US206 MILLION GW SAID IT IS CONTINUING TO SEEK A BUYER FOR ITS HOME OIL STAKE WHICH IS GW'S MAIN ASSET THE BUYOUT PLAN REPLACES AN EARLIER ALLCASH OFFER FROM O&Y THAT PLAN WAS ABANDONED AFTER THE TORONTO REAL ESTATE CONCERN BECAME INSOLVENT AN O&Y DEBTRESTRUCTURING PLAN WAS APPROVED BY AN ONTARIO COURT LAST MONTH AND THE COMPANY IS EXPECTED SOON TO EMERGE FROM CANADIAN BANKRUPTCY COURT PROTECTION FROM CREDITORS 9303110034 930311 COMMODITIES PETROLEUM FUTURES RALLY BRIEFLY ON NEWS OF DROP IN INVENTORIES THEN SETTLE LOWER FOR THE DAY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES FELL IN WORLD OIL MARKETS AFTER A BRIEF RALLY LED BY HEATING OIL BEFORE THE RALLY FADED LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY HAD CLIMBED TO 2088 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE BUT IT SETTLED AT 2039 DOWN 29 CENTS FOR THE DAY CRUDE OIL FUTURES ALSO DROPPED IN LONDON AFTER A STRONG START ON THE INTERNATIONAL PETROLEUM EXCHANGE THE APRIL BRENT CONTRACT TRADED AS HIGH AS 1935 A BARREL ON THE IPE BEFORE FALLING BACK TO END THE DAY AT 1888 A BARREL DOWN FROM TUESDAY'S CLOSE OF 1905 YESTERDAY'S RALLY WAS LAUNCHED BY THE LATEST WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE ON US OIL INVENTORIES THE API FIGURES RELEASED LATE TUESDAY AFTER THE CLOSE OF FUTURES TRADING SHOWED A SURPRISINGLY LARGE DROP OF 77 MILLION BARRELS IN INVENTORIES OF DISTILLATES WHICH INCLUDE HEATING OIL IT STARTED WITH THE VERY POSITIVE API REPORT SAID PETER BEUTEL A TRADER AND ENERGY ANALYST AT BRODY WHITE & CO A NEW YORK COMMODITY BROKERAGE FIRM DISTILLATE STOCKS WERE DOWN THE MOST WE'VE SEEN THIS SEASON HE SAID HEATING OIL FUTURES SURGED AS A RESULT OF THE REPORT LENDING STRENGTH TO OTHER FUELS AND TO CRUDE OIL AT ONE POINT HEATING OIL FOR APRIL DELIVERY WAS UP MORE THAN ONE CENT A GALLON FOR TUESDAY'S CLOSE BUT THE RALLY HAD SHAKY UNDERPINNINGS IT'S LATE IN THE SEASON FOR A RUNUP IN HEATING OIL PRICES TRADERS BEGAN TAKING PROFITS AND SOCALLED TECHNICAL SELLING BEGAN BY THE CLOSE OF TRADING APRIL HEATING OIL WAS DOWN FRACTIONALLY FOR THE DAY IN NEW YORK SETTLING AT 5803 CENTS A GALLON NEWS REPORTS FROM KUWAIT ALSO HELPED TO TRIGGER THE REVERSAL IN OIL PRICES DURING YESTERDAY'S TRADING ACCORDING TO THE KUWAIT NEWS AGENCY SOME OFFICIALS WERE QUESTIONING WHETHER THE EMIRATE SHOULD REMAIN A MEMBER OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SUCH QUESTIONING WHICH IS UNDERSTOOD TO BE COMING FROM A KUWAIT PARLIAMENTARY COMMITTEE FOLLOWED COMPLAINTS BY A KUWAITI OFFICIAL THAT THE EMIRATE WOULD LOSE 750 MILLION AS A RESULT OF ITS NEW OPEC QUOTA OF 16 MILLION BARRELS A DAY WHICH IS EFFECTIVE THIS MONTH THAT IS 400000 BARRELS A DAY LESS THAN KUWAIT'S OFFICIAL FIGURE FOR ITS FEBRUARY PRODUCTION IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS SOYBEAN FUTURES PRICES WERE EXPECTED TO RISE SLIGHTLY TODAY AFTER THE US DEPARTMENT OF AGRICULTURE RAISED ITS ESTIMATE OF FOREIGN DEMAND FOR SOYBEANS IN A CROP REPORT RELEASED AFTER TRADING YESTERDAY THE USDA PROJECTED THAT EXPORTS OF SOYBEANS IN THE 199293 MARKETING YEAR WOULD BE 760 MILLION BUSHELS UP FROM 745 MILLION BUSHELS IN THE USDA'S FEB 10 REPORT LARGELY BECAUSE TRADERS WERE EXPECTING SUCH A MOVE THE PRICE OF THE SOYBEAN CONTRACT FOR JULY DELIVERY ROSE 575 CENTS TO SETTLE AT 58825 A BUSHEL ANALYSTS SAID THEY EXPECTED THE PRICE OF THE JULY CONTRACT TO OPEN ONE OR TWO CENTS HIGHER THIS MORNING PRECIOUS METALS GOLD FUTURES EXTENDED THEIR SLIDE DROPPING ANOTHER 30 CENTS TO SETTLE AT 32690 AN OUNCE FOR APRIL DELIVERY ON THE COMMODITY EXCHANGE IN NEW YORK TRADERS SAID ACTIVITY AT THE EXCHANGE WAS TECHNICALLY DRIVEN WITH LITTLE FRESH NEWS AFFECTING THE MARKET SOME ANALYSTS HAD EXPECTED APRIL GOLD WHICH SETTLED JUST ABOVE ITS LIFEOFCONTRACT LOW TO COME UNDER GREATER PRESSURE WE'RE NOT GETTING A LOT OF DOWNSIDE FOLLOWTHROUGH SAID BERNARD SAVAIKO A SENIOR METALS ANALYST WITH PAINEWEBBER BUT THE BEARS ARE STILL IN CONTROL HE PREDICTED THAT IF THE MARCH GOLD PRICE WHICH CLOSED AT 32630 ON THE COMEX DOWN 30 CENTS SHOULD BREACH THE 325 LEVEL IN THE NEXT DAY OR TWO THERE COULD BE HEAVY SELLING OF APRIL GOLD FUTURES A COMBINATION OF FACTORS INCLUDING LOW INFLATION HEAVY SELLING BY GOLD PRODUCERS AND A RUSH OF INVESTMENT FUNDS INTO INTERNATIONAL EQUITY MARKETSCONTINUES TO WEIGH ON GOLD PRICES SILVER FOR MAY DELIVERY FINISHED MARGINALLY HIGHER UP 04 CENT TO 3582 AN OUNCE ON THE COMEX APRIL PLATINUM FUTURES ENDED 50 CENTS HIGHER AT 34560 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE WHILE JUNE PALLADIUM FUTURES FINISHED 15 CENTS HIGHER AT 10270 AN OUNCE COPPER FUTURES PRICES JUMPED MORE THAN A CENT ON MARKET CONCERN ABOUT A POSSIBLE STRIKE LATER THIS WEEK IN PERU THE WORLD'S FOURTH LARGEST PRODUCER COPPER FOR MAY DELIVERY SETTLED 105 CENTS HIGHER AT 9630 CENTS A POUND AS COMMODITY FUNDS BOUGHT CONTRACTS ON THE STRIKE RUMORS ANALYSTS SAID THERE IS LITTLE OTHER FRESH FUNDAMENTAL NEWS INFLUENCING THE MARKET WHICH HAS BEEN TRADING IN A NARROW RANGE TRADERS SAID THAT WITH LITTLE SIGN OF FRESH BUYING FROM CHINA PRICES ARE UNLIKELY TO RETURN SOON TO LEVELS ABOVE 1 A POUND WHICH WERE SEEN EARLIER THIS YEAR 9303110033 930311 BUSINESS BRIEF ALBERTSON'S INC FIRM BUYS 11 MILLION SHARES FROM ESTATE OF ITS FOUNDER ALBERTSON'S INC SAID IT PURCHASED NEARLY 11 MILLION OF ITS SHARES FROM THE ESTATE OF THE COMPANY'S FOUNDER JA ALBERTSON FOR A TOTAL OF 5175 MILLION ALBERTSON'S SAID IT BOUGHT THE SHARES AT 4710 EACH FROM THE ESTATE OF MR ALBERTSON WHO DIED JAN 20 THE PURCHASE PRICE WAS 96 OF THE AVERAGE CLOSING PRICE OF ALBERTSON'S STOCK FOR THE 30DAY PERIOD THAT ENDED FEB 22 THE COMPANY SAID ALBERTSON'S SAID IT WILL RETIRE ABOUT SIX MILLION OF THE PURCHASED SHARES LEAVING IT WITH 1153 MILLION SHARES OUTSTANDING THE BOISE IDAHO SUPERMARKET CHAIN SAID IT PLANS TO FINANCE THE STOCK PURCHASE WITH AN OFFERING OF FIVE MILLION COMMON SHARES AND A SEPARATE OFFERING OF MEDIUMTERM NOTES WITH THREE TO SEVENYEAR MATURITIES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ALBERTSON'S STOCK CLOSED AT 54125 DOWN 875 CENTS ALBERTSON'S INC WILL HAVE ABOUT 121 MILLION COMMON SHARES OUTSTANDING AFTER IT COMPLETES BUYING SHARES FROM THE ESTATE OF ITS FOUNDER JA ALBERTSON THE PURCHASE PRICE FOR THE SHARES WAS BASED ON A 30DAY PERIOD ENDED FEB 21 AN ARTICLE YESTERDAY INCORRECTLY SAID THE COMPANY WOULD HAVE 1153 MILLION SHARES OUTSTANDING AND GAVE AN INCORRECT CONCLUDING DATE FOR SETTING THE SHARE PRICE 9303110032 930311 HEARD ON THE STREET SEGA ENTERPRISES DRAWS FAVORABLE COMMENTS BY TOKYO ANALYSTS AS FIRM SEES JUMP IN PROFIT BY JACOB M SCHLESINGER AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO SEGA ENTERPRISES STOCK HAS BEEN ONE OF THE ONLY WINNING GAMES IN TOWN FOR LOCAL INVESTORS IN RECENT MONTHS NOW ANALYSTS IN TOKYO ARE URGING FOREIGNERS TO JUMP AT THE CHANCE TO BUY STOCK IN THE TOKYOBASED VIDEOGAME COMPANY WHICH BROUGHT THE WORLD SONIC THE HEDGEHOG IN OUR VIEW THE SHARES ARE UNDERVALUED GOLDMAN SACHS JAPAN SAYS IN A RECENT REPORT RECOMMENDING THE STOCK WE EXPECT IT TO SIGNIFICANTLY OUTPERFORM THE MARKET EARNINGS PROSPECTS ARE STRONG SO WAS SEGA'S PERFORMANCE ON ITS FIRST TRADING DAY IN THE US FIVE YEARS AFTER GOING PUBLIC IN JAPAN SEGA HAS JUST STARTED TRADING ABROAD AS AMERICAN DEPOSITARY RECEIPTS IN THE US OVERTHECOUNTER MARKET AND ALSO ON THE PARIS BOURSE TRADERS IN NEW YORK WERE QUOTING THE ADRS AT 21 7/8 LATE YESTERDAY UP FROM 21 1/2 IN THE MORNING FOUR OF THE ADRS EQUAL ONE COMMON SHARE THE STOCK TRADES AT ROUGHLY 29 TIMES SOME EARNINGS ESTIMATES FOR THE FISCAL YEAR ENDING THIS MONTH THAT'S NOT DIRT CHEAP BUT CORPORATE JAPAN AS A WHOLE IS BRACING FOR ITS FOURTH CONSECUTIVE YEAR OF LOWER EARNINGS MEANWHILE SEGA SAYS IT WILL REPORT A 64 JUMP IN PARENTCOMPANY PRETAX PROFIT TO 55 BILLION YEN 4673 MILLION FOR THE FISCAL YEAR ENDING MARCH 31 ANNUAL SALES ARE EXPECTED TO GROW 60 TO 341 BILLION YEN SEGA'S STOCK HAS MANAGED A SLIGHT 12MONTH GAIN IN TOKYO STOCK EXCHANGE TRADING DESPITE A 15 DECLINE IN THE NIKKEI AVERAGE OF 225 STOCKS KINUYO FUKUDA AN ANALYST WITH WI CARR OVERSEAS SAYS SHE THINKS SEGA'S STOCK COULD RISE 30 IN THE NEXT YEAR WHILE THE VIDEOGAME MARKET IS THRIVING MUCH OF THE REST OF HOME ELECTRONICS ISN'T GIANTS SUCH AS NEC SAY THEY'LL FALL INTO THE RED THIS YEAR BUT SEGA'S ARCHRIVAL NINTENDO ALSO EXPECTS TO REPORT BANNER SALES AND PROFIT GOODS SUCH AS TOASTERS AND TELEVISIONS ARE BASICALLY NECESSITIES SO THERE ARE LIMITS TO DEMAND SAYS SEGA MANAGING DIRECTOR SHUNICHI NAKAMURA OUR MARKET ISN'T FOR NECESSITIES PEOPLE BASE THEIR PURCHASE DECISIONS ON WHETHER THEY THINK THE PRODUCT HAS VALUE WHETHER IT'S INTERESTING THE LIKES OF SONY AND MATSUSHITA ELECTRIC INDUSTRIAL MUST SLUG IT OUT WITH EACH OTHER AND WITH CHEAPER ASIAN COMPETITORS TO SELL SIMPLE PRODUCTS SUCH AS RADIOS OR VIDEOCASSETTE RECORDERS BUT SEGA AND NINTENDO ARE LIONS IN THE VIDEOGAME FIELD EACH HAS EXCLUSIVE RIGHTS TO ITS SOFTWARE DESIGNS GIVING THEM A WEAPON AGAINST COMPETITORS AND A PROP FOR PRICES ELECTRONICS MAKERS WITHOUT SOFTWARE MR NAKAMURA SAYS ARE IN A BAD POSITION SEGA HAS BEEN GAINING GROUND AT THE EXPENSE OF KYOTOBASED NINTENDO WHICH GOT A HEAD START IN THE HOME VIDEOGAME MARKET AND IS CURRENTLY ABOUT TWICE SEGA'S SIZE TWO YEARS AGO SEGA HAD ONLY ABOUT 4 TO 5 OF THE MARKET FOR HOMEGAME MACHINES POWERED BY 8BIT MICROPROCESSORS SAYS MS FUKUDA OF WI CARR SHE ESTIMATES SEGA NOW HAS A 30 WORLDWIDE SHARE OF TODAY'S 16BIT GENERATION OF MACHINES SEGA IS MORE AGGRESSIVE THAN NINTENDO IN TERMS OF DEVELOPING AND LAUNCHING HIGHERGRADE NEW PRODUCTS SAYS MS FUKUDA SEGA BEAT NINTENDO TO MARKET WITH CDROM MACHINES WHICH OFFER MORE SOPHISTICATED GRAPHICS SEGA HAS ALSO PUT NEW LIFE INTO ITS TRADITIONAL PROFIT CENTER THE BUSINESS OF MAKING MACHINES FOR AND RUNNING VIDEOGAME ARCADES IN RECENT MONTHS IT HAS OPENED NEW UPSCALE ARCADES IN JAPAN AIMED AT FAMILIES AND DATING COUPLES RATHER THAN JUST KIDS ANALYSTS SAY SEGA ENVISIONS A SIMILAR MAKEOVER ABROAD AND SEGA ISN'T OVERLY DEPENDENT ON ITS WEAK HOME MARKET NEARLY TWOTHIRDS OF ITS REVENUE COMES FROM OUTSIDE JAPANABOUT 25 FROM NORTH AMERICA ABOUT A THIRD FROM EUROPE ANALYSTS DO SEE SOME WARNING SIGNS GROWING PAINS ARE EVIDENT AT A COMPANY WHERE SALES HAVE MORE THAN QUINTUPLED IN FIVE YEARS STEVE MYERS OF JARDINE FLEMING SECURITIES SAYS SEGA HAD NEGATIVE CASH FLOW LAST YEAR MR NAKAMURA 46 YEARS OLD SAYS SEGA LACKS ENOUGH EXPERIENCED MIDDLE MANAGERS EMPLOYEES' AVERAGE AGE IS AROUND 30 LIKE MANY JAPANESE COMPANIES SEGA HAS HEAVY DEBTS CARRYING CONVERTIBLE BONDS EQUAL TO ABOUT 12 OF ITS SHARES OUTSTANDING SAYS GOLDMAN SACHS AND LIKE MANY EXPORTORIENTED JAPANESE COMPANIES SEGA STANDS TO LOSE AS THE YEN STRENGTHENS AGAINST THE DOLLAR SEGA'S PORTABLE GAME GEAR MACHINE FARED POORLY AGAINST NINTENDO'S GAME BOY AND NINTENDO IS STRIKING BACK WITH ITS OWN MORE POWERFUL CDROM MACHINE MEANWHILE COMPETITORS ARE CIRCLING THE VIDEOGAME MARKET NOTABLY 3DO CO A CALIFORNIA VENTURE WITH BACKERS INCLUDING MATSUSHITA SEGA'S MR NAKAMURA ACKNOWLEDGES THAT MATCHING THE 50 ANNUAL GROWTH WE'VE HAD UNTIL NOW WOULD BE DIFFICULT BUT HE INSISTS FUNDAMENTALLY THE TONE OF OUR GROWTH WON'T CHANGE SEGA SHOULD REACH SALES AT THE 400 BILLION YEN LEVEL FOR THE FISCAL YEAR ENDING MARCH 31 1994 AND WILL MEET ITS TARGET OF 600 BILLION YEN TWO YEARS LATER HE SAYS ADDING I AM CONFIDENT THAT NO ONE CAN BEAT US ON TECHNOLOGY 9303110031 930311 THE NEW ATTORNEY GENERAL IN HER OWN WORDS FOLLOWING ARE EXCERPTS FROM JANET RENO'S CONFIRMATION HEARING TUESDAY SEN STROM THURMOND AS YOU KNOW THERE'S A CURRENT PUBLIC CORRUPTION CASE INVOLVING A SITTING MEMBER OF CONGRESS AFTER MEETING WITH OTHER MEMBERS OF CONGRESS INTERESTED IN THE CASE THE ACTING ATTORNEY GENERAL DIRECTED THE US ATTORNEY HANDLING THE CASE TO JOIN IN A MOTION TO DISMISS THE JURY BASED ON RACIAL GROUNDS THE US ATTORNEY RESIGNED IN PROTEST AND THE DISTRICT JUDGE DENIED THE MOTION TO DISMISS THE JURY DO YOU FIND ANYTHING TROUBLING WITH THE MANNER IN WHICH THIS SITUATION WAS HANDLED MS RENO I MET IN THE COURSE OF PREPARING FOR THE CONFIRMATION HEARING AS A COURTESY WITH THE ACTING US ATTORNEY GENERAL STUART GERSON A HIGHLEVEL APPOINTMENT OF THE PRIOR ADMINISTRATION HE GAVE ME THE STATEMENT THAT HE HAD ISSUED WITH RESPECT TO THAT MATTER AND THEN DISCUSSED IT WITH ME BRIEFLY AND SENATOR I WAS SO IMPRESSED WITH HIM AS HE SAID AND HE SAYS IN HIS STATEMENT AND I'M SURE YOU HAVE A COPY OF IT HE DID WHAT HE THOUGHT WAS RIGHT AND HE SAID IT WAS AS HE TOLD ME HE SAID MEETING WITH PEOPLE DIDN'T HAVE ANYTHING TO DO WITH IT I DIDN'T HAVE ANY INFLUENCE FROM THE WHITE HOUSE I THOUGHT ABOUT IT I PREPARED THIS STATEMENT AND I DID WHAT I THOUGHT WAS RIGHT SEN CHARLES GRASSLEY MS RENO CONGRATULATIONS AND MORE IMPORTANTLY THANK YOU FOR STOPPING BY OUR OFFICES TO VISIT WITH US SEPARATELY IT WAS A VERY NICE WAY OF GETTING ACQUAINTED AND WE LOOK FORWARD TO WORKING WITH YOU SO CONGRATULATIONS NOW AS I TOLD YOU IN MY OFFICE I DID WANT TO DISCUSS WITH YOU THE THE CONGRESSMAN FORD INSTANCE AND I KNOW THAT WHILE I WAS OUT SEN THURMOND BROUGHT THIS UP AND SPECIFICALLY THE DEPARTMENT'S HANDLING OF THAT AND I KNOW YOU HAVEN'T BEEN INVOLVED IN THAT YET NOW I THINK YOU INDICATED THAT YOU WERE SATISFIED WITH STUART GERSON'S EXPLANATION I WANT YOU TO KNOW THAT I'M NOT SATISFIED WITH HIS EXPLANATION AND I HOPE THAT YOU WILL TRY TO HELP ME SEE THE WAY THROUGH HERE ISN'T IT TRUE THAT IN THIS INSTANCE MORE THAN TWO DOZEN CONGRESSMEN VISITED THE WHITE HOUSE AND THE ACTING ATTORNEY GENERAL IN AN EFFORT TO INFLUENCE THE DEPARTMENT'S CONDUCT IN THIS CASE MS RENO SENATOR JUST AS YOU ASKED ME WHAT THE DEPARTMENT POLICY WAS GOING TO BE WITH RESPECT TO QUI TAM AND WORKING WITH QUI TAM RELATORS INFORMERS I THINK THERE HAS GOT TO BE ACCESS ON THE PART OF ALL AMERICANS WHETHER THEY BE A US SENATOR OR CONGRESSPERSON OR A MEMBER OF THE PUBLIC TO THE DEPARTMENT OF JUSTICE I USED TO IN THE JOB I NOW HAVE I'VE BEEN ABLE TO BE ACCESSIBLE TO PEOPLE OBVIOUSLY IN A NATION THIS BIG THAT'S NOT POSSIBLE ON A PERSONAL BASIS WHEN PEOPLE COME TO ME TO TALK ABOUT POLICY AS YOU AND I DID I THINK WE CAN TALK ABOUT POLICY BUT FORGIVE THE REPETITION AS I TOLD SEN THURMOND THIS MORNING WHEN SOMEBODY COMES IN AND SAYS IF YOU DON'T DO THIS I'M GOING TO THE MIAMI HERALD AND I'M GOING TO BLOW THE WHISTLE ON YOU I WRITE OUT THE NUMBER FOR THE MIAMI HERALD AND SAY HERE GO TO THE MIAMI HERALD AND WHEN YOU'RE THROUGH FUSSING AND WHEN THEY'RE THROUGH EDITORIALIZING AND YOU WANT TO COME BACK AND TALK ABOUT THE EVIDENCE AND THE LAW I'LL PUT YOU WITH THE PROSECUTOR AND WE'LL DO IT I'VE HAD OTHER GROUPS SAY WE'RE GOING TO VOTE AGAINST YOU AND I SAY I DIDN'T GET INTO THIS BUSINESS FOR VOTES MY OLD LAW FIRM SAID THEY'D TAKE ME BACK ANYTIME THE VOTERS DIDN'T WANT ME I GOT INTO THIS TO DO JUSTICE BASED ON THE EVIDENCE AND THE LAW AND THAT'S WHAT I WANT TO TRY TO DO I WENT UP AND MET MR GERSON I WAS VERY IMPRESSED WITH HIM I WAS VERY IMPRESSED WITH HIS STATEMENT AND THE FACT THAT HE WAS A HIGHLEVEL APPOINTMENT OF THE PRIOR ADMINISTRATION AS A MATTER OF FACT AS WE TALKED HE WAS TELLING ME HE HAD BEEN IN COMMUNICATION WITH PRESIDENT BUSH WHO I UNDERSTAND JUST BOUGHT A CAR AND WAS DRIVING BACK AND FORTH TO WORK AGAIN HE OBVIOUSLY REFLECTS THE VIEWS OF THE PRIOR ADMINISTRATION BUT HE EMPHASIZED TO ME AND WITH EMPHATICS THAT HE'D DONE WHAT HE THOUGHT WAS RIGHT THAT THERE WAS NOT POLITICAL INFLUENCE AND I'M SATISFIED WITH HIS EXPLANATION SEN GRASSLEY WELL I THINK THAT WHAT YOU SAID ABOUT THE DIFFERENCE BETWEEN POLICY AND A SPECIFIC CASE NONE OF US ARE GOING TO DISAGREE WITH THAT BUT IT SEEMS TO ME THAT IF MORE THAN TWO DOZEN CONGRESSMEN VISITED YOU ABOUT A CASE THAT WHAT YOU'RE BASICALLY TELLING ME IN THAT PARTICULAR INSTANCE YOU'D GO TELL THEM TO MIND THEIR OWN BUSINESS IS THAT RIGHT MS RENO IF TWO DOZEN CONGRESSMEN CAME TO ME AND SAID MS RENO I'M CONCERNED ABOUT THE DEPARTMENT OF JUSTICE'S HANDLING OF QUI TAM CASES I DON'T THINK YOU COOPERATE WITH THE RELATORS I JUST THINK YOU FUDGE AT IT AND I WANT YOU TO DO SOMETHING ABOUT IT AND I WANT YOU TO LOOK AT IT CAREFULLY I'D SAY CERTAINLY SENATOR WE WILL ALWAYS REVIEW WHAT WE DO IF YOU HAVE A SPECIFIC CONCERN PLEASE PRESENT IT TO THE LAWYER AGAIN I THINK AS THE NATION'S LAWYER YOU'VE GOT TO BE ACCESSIBLE TO PEOPLE IF THEY TRY TO POLITICALLY INFLUENCE YOU CORRUPTLY INFLUENCE YOU I THINK YOU HAVE TO I DON'T KNOW HOW YOU GRACEFULLY THROW A SENATOR OUT THE DOOR BUT YOU LAUGHTER SEN GRASSLEY WELL LET ME ASK YOU THIS IN REGARD TO THIS SAME CASE HAVE YOU HAD A CHANCE TO DISCUSS WITH ANYBODY ABOUT THE ROLE OF WEBSTER HUBBELL AND WHAT HE PLAYED IN THIS COURSE OF EVENTS ON THE FORD CASE MS RENO I MADE A POINT OF TALKING TO MR GERSON ABOUT IT WHO SPOKE VERY HIGHLY OF MR HUBBELL AND WAS EMPHATIC THAT MR HUBBELL HAD NOT TRIED TO INFLUENCE ANYBODY TO DO ANYTHING POLITICALLY INAPPROPRIATE SEN GRASSLEY I HOPE THAT'S THE CASE OF COURSE I THINK WHAT IT LOOKS TO PEOPLE THAT ARE ON THE OUTSIDE AND BEING SUSPICIOUS OF POLITICS GENERALLY IS IT SUGGESTS INAPPROPRIATENESS OF WHITE HOUSE INFLUENCE AND THE APPEARANCE OF IMPROPRIETY AND I THINK YOU'RE INDICATING TO US THAT YOU'RE GOING TO DO WHAT YOU CAN EVEN TO PROTECT AGAINST THE APPEARANCE OF IMPROPRIETY I GUESS AS A FOLLOWUP THEN OF THIS AND WHAT YOU TOLD ME THAT YOU WOULD DO WHEN YOU WERE IN MY OFFICE THAT YOU WOULD LOOK INTO THE FORD MATTER AND REPORT BACK TO ME AND OTHER PEOPLE THAT ARE INTERESTED IN IT ABOUT THE CIRCUMSTANCES OF THE CASE SPECIFICALLY I THINK IT'S IMPORTANT THAT YOU TELL US WHAT MEETINGS TOOK PLACE BETWEEN ANY WHITE HOUSE OFFICIALS AND THE ACTING ATTORNEY GENERAL GERSON AS WELL AS MEETINGS BETWEEN OTHER OUTSIDE PARTIES INCLUDING MEMBERS OF CONGRESS WITH WHITE HOUSE OFFICIALS OR EVEN DEPARTMENT OF JUSTICE OFFICIALS SEN GRASSLEY THAT YOU KNOW ENOUGH ABOUT IT IS THAT RIGHT MS RENO YES THIS WAS THE CLINTON ADMINISTRATION YOU HAVE A HIGHLEVEL APPOINTEE FROM THE PRIOR ADMINISTRATION WHO I THINK HAS MADE ONE OF THE MOST ELOQUENT STATEMENTS THAT I'VE SEEN IN A LONG TIME I THINK IT SPEAKS FOR ITSELF AND I DON'T SEE ANY FURTHER ACTION TO BE TAKEN ON IT 9303110030 930311 WHAT'S NEWS BUSINESS AND FINANCE BANK REGULATIONS WOULD BE EASED UNDER PLANS ANNOUNCED BY CLINTON THAT AIM AT INCREASING LENDING TO SMALL BUSINESS THE PACKAGE DREW IMMEDIATE SUPPORT FROM BANKS AND SMALL BUSINESSES THOUGH IT WILL BE SEVERAL MONTHS BEFORE REGULATORS WORK OUT THE DETAILS OF THE PROPOSALS DEMOCRATS TOOK UP BUDGET PROPOSALS REFLECTING CLINTON'S DESIRE TO INCREASE SPENDING ON FAVORED PROGRAMS WHILE STILL CUTTING THE DEFICIT BY ROUGHLY 500 BILLION OVER FIVE YEARS THE INVESTMENT TAX CREDIT PROPOSED BY CLINTON AND REDUCTIONS IN BUSINESS TAXES WILL BE OVERWHELMED BY THE EVEN LARGER INCREASES IN OTHER BUSINESS TAXES ACCORDING TO SOME ECONOMISTS AND TRADE GROUPS NEW ENGLAND AND THE FAR WEST TWO OF THE WEAKEST ECONOMIC REGIONS OF THE COUNTRY ARE SHOWING SOME SIGNS OF GROWTH ACCORDING TO A SURVEY OF THE 12 FEDERAL RESERVE DISTRICT BANKS APPLE'S SCULLEY TOOK HIMSELF OUT OF THE RUNNING TO BE IBM'S NEXT CHIEF EXECUTIVE HIS MOVE FOLLOWS THE SAME DECISION BY ALLIEDSIGNAL'S BOSSIDY THEIR ACTIONS COULD INDICATE THAT IBM'S SEARCH IS ENTERING ITS FINAL STAGE STOCKS EDGED HIGHER EXTENDING THE MARKET'S RECORDSETTING WEEK THE DOW JONES INDUSTRIALS CLIMBED 622 TO A RECORD 347834 BONDS EASED WITH THE TREASURY'S LONG BOND FALLING LESS THAN 1/8 POINT THE DOLLAR WAS MIXED GM IS EXPECTED TO GET A 1 BILLION COMMITMENT FROM EACH OF 17 BANKS FOR THE AUTO MAKER'S NEW BANK CREDIT LINES THE PENDING DEALS ARE A SIGN THAT GM IS ON ITS WAY TO RAISING THE LARGEST BANK DEAL EVER ASSEMBLED THE FED IS MAKING A SECOND TRY AT INVESTIGATING WHETHER ROME'S BANCA NAZIONALE DEL LAVORO VIOLATED US BANKING LAWS IN A SERIES OF HIDDEN LOANS BY ITS ATLANTA BRANCH TO IRAQ NEW YORK'S COMMODITY EXCHANGE GOT A SURPRISE COUNTERBID FROM THE COFFEE SUGAR & COCOA EXCHANGE THE COMEX IS NEGOTIATING TO BE SUBSUMED BY THE CHICAGO BOARD OF TRADE ANHEUSERBUSCH SOON WILL DISCLOSE THE ALCOHOL CONTENT OF ITS BIGGESTSELLING BEERS AN IDEA THE WORLD'S LARGEST BREWER HAS LONG OPPOSED OTHER BREWERS ARE EXPECTED TO FOLLOW PARAMOUNT COMMUNICATIONS' NET FELL 95 IN THE FISCAL FIRST PERIOD ON A 14 DROP IN REVENUE THE DECLINES REFLECT WEAKNESS IN FEATURE FILMS AND SEASONAL LOSSES IN PUBLISHING A KEY GENENTECH SCIENTIST PLANS TO LEAVE THE BIOTECHNOLOGY FIRM TO WORK AT TULARIK A PRIVATELY HELD GENETIC RESEARCH COMPANY HE COFOUNDED NOVELL EXPECTS TO BEGIN SHIPPING NETWARE 40 THE NEWEST VERSION OF ITS WIDELY USED COMPUTERNETWORKING SOFTWARE BY THE END OF THIS MONTH GE CHAIRMAN WELCH RECEIVED 35 MILLION IN 1992 SALARY AND BONUS AND 67 MILLION FROM THE EXERCISE OF STOCK RIGHTS THE BOARD HAS ALSO GRANTED HIM TWO LONGTERM INCENTIVE AWARDS FORMER SECRETARY OF STATE JAMES BAKER WILL BECOME A PARTNER IN THE CARLYLE GROUP A MERCHANT BANKING CONCERN WHERE HIS PRESENCE WILL BE USED TO HELP ATTRACT CORPORATE CLIENTS DIRECTV ASSERTED THAT CANADIAN REGULATORS HAVE NO JURISDICTION OVER THE DIRECT SATELLITETOHOME TV SERVICE THAT THE UNIT OF GM'S HUGHES COMMUNICATIONS INTENDS TO LAUNCH NEXT YEAR IN THE US AND CANADA TOKYO STOCKS FINISHED NARROWLY MIXED THE NIKKEI INDEX ROSE 1033 TO 1785863 FOR A GAIN THIS WEEK OF 62 BONDS LEHMAN BROTHERS TREASURY INDEX 506949 OFF 1200 COMMODITIES OIL 2039 A BARREL OFF 29 CENTS DOW JONES FUTURES INDEX 13032 UP 136 SPOT INDEX 12454 UP 062 DOLLAR 11805 YEN UP 030 16663 MARKS OFF 00007 9303110028 930311 WHAT'S NEWS WORLDWIDE THE FBI ARRESTED A SECOND SUSPECT IN THE WORLD TRADE CENTER BOMBING FEDERAL AGENTS ARRESTED A KUWAITIBORN CHEMICAL ENGINEER IN MAPLEWOOD NJ AND CHARGED HIM WITH AIDING IN THE FEB 26 BOMBING IN NEW YORK AUTHORITIES HINTED THAT THE SUSPECT NIDAL A AYYAD HELPED BUILD THE MASSIVE BOMB OFFICIALS INDICATED THAT ABOUT HALF A DOZEN PEOPLE HAVE BEEN IMPLICATED THE FBI SAID AYYAD SHARES A JOINT BANK ACCOUNT WITH MOHAMMED SALAMEH CHARGED LAST WEEK IN THE BOMBING AND THAT THE TWO SUSPECTS HAVE KNOWN EACH OTHER FOR MORE THAN ONE YEAR RODNEY KING TESTIFIED IN FEDERAL COURT THAT HE INITIALLY DENIED LOS ANGELES POLICE USED RACIAL SLURS WHILE BEATING HIM BECAUSE HIS MOTHER TOLD HIM NOT TO MAKE IT A BIGGER ISSUE THAN IT ALREADY IS KING SOUNDED CONFUSED AT TIMES AS HE WAS CROSSEXAMINED AN ABORTION OPPONENT SHOT TO DEATH A DOCTOR DURING A DEMONSTRATION OUTSIDE HIS PENSACOLA FLA ABORTION CLINIC THEN CALMLY SURRENDERED POLICE SAID IT WAS THE FIRST FATALITY EVER REPORTED AT AN ABORTION PROTEST ABORTIONRIGHTS ADVOCATES SAID A FEDERAL JUDGE RULED THAT THE PRESIDENT'S HEALTHCARE TASK FORCE AND ITS WORKING GROUPS LED BY HILLARY RODHAM CLINTON COULD CONTINUE TO MEET IN SECRECY THE JUDGE SAID THAT THE 12MEMBER TASK FORCE MUST MEET IN PUBLIC IF IT IS GATHERING INFORMATION THE GROUP CAN CONTINUE MEETING IN PRIVATE TO FORMULATE RECOMMENDATIONS YELTSIN OPENED A SESSION OF RUSSIA'S CONGRESS SAYING HE THOUGHT A POWERSHARING COMPROMISE COULD BE FOUND BUT THERE WERE NO SIGNS OF ANY ACCORD AND A PRESIDENTIAL AIDE LATER SAID YELTSIN WAS BEING PUSHED TOWARD DEEP AND TRAGIC DELIBERATIONS OVER WHAT DECISION HE MUST TAKE TO SAVE REFORMS AND DEMOCRACY MUSLIMS AND POLICE CLASHED DURING FOUR GOVERNMENT RAIDS IN EGYPT AND AUTHORITIES SAID AT LEAST 20 MILITANTS AND FOUR POLICEMEN WERE KILLED FORTY PEOPLE WERE WOUNDED IN THE RAIDS WHICH BEGAN LATE TUESDAY THE WORST CLASH WAS AT A MOSQUE IN ASWAN OFFICIALS HAVE TAKEN AN INCREASINGLY HARDLINE APPROACH TOWARD FUNDAMENTALISTS NEW STUDIES INDICATED THAT QUICK REOPENING OF BLOCKED CORONARY ARTERIES WITH A TINY BALLOON MAY BE MORE EFFECTIVE IN STOPPING A HEART ATTACK THAN DRUGS THAT DISSOLVE BLOOD CLOTS THE REPORTS INVOLVE EMERGENCYROOM TREATMENT AMERICANS LIKE CLINTON BUT THERE ARE GROWING RESERVATIONS ACCORDING TO A NEW POLL THE WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT 57 OF THE 1503 ADULTS SURVEYED APPROVE OF THE PRESIDENT'S JOB PERFORMANCE THE TOKYO PROSECUTORS OFFICE REFUSED TO CONFIRM DETAILS OF ALLEGATIONS AGAINST JAPAN'S EXPOLITICAL KINGMAKER SHIN KANEMARU ARRESTED SATURDAY HOWEVER THE WIDELY PUBLISHED AMOUNT OF SUSPECT ASSETS LINKED TO KANEMARU TOTALS ALMOST 51 MILLION THE SENATE JUDICIARY COMMITTEE VOTED UNANIMOUSLY TO APPROVE THE NOMINATION OF JANET RENO AS THE NATION'S FIRST FEMALE ATTORNEY GENERAL AFTER TWO DAYS OF CONFIRMATION HEARINGS THE FULL SENATE WAS EXPECTED TO VOTE TODAY ON THE APPOINTMENT SECRETARY OF STATE CHRISTOPHER SAID MIDEAST TALKS WILL BE REOPENED IN WASHINGTON ON APRIL 20 WITH THE US PLAYING A MORE FORCEFUL ROLE IN SEEKING AN ARABISRAELI SETTLEMENT BRUSHING ASIDE A THREATENED PALESTINIAN BOYCOTT HE SAID HE BELIEVED ALL THE PARTIES WILL COME TO THE TALKS THE ITALIAN SENATE VOTED TO SUPPORT THE AMATO GOVERNMENT AMID A RAUCOUS SESSION OF PARLIAMENT THE 14399 VOTE CAME AFTER THE PRIME MINISTER ASKED LAWMAKERS TO GIVE FIRMER SUPPORT TO HIS GOVERNMENT UNTIL VOTING REFORMS CAN BE COMPLETED CLINTON SAID HE WILL TACKLE THE PACIFIC NORTHWEST'S DISPUTE OVER LOGGING AND SPOTTED OWLS WITH A FOREST CONFERENCE IN PORTLAND OREGON ON APRIL 2 THE PRESIDENT VICE PRESIDENT GORE AND SEVERAL CABINET MEMBERS ARE EXPECTED TO PARTICIPATE A UN MEDICAL CONVOY ENCOUNTERED NEW PROBLEMS IN ITS EFFORTS TO EVACUATE 75 SICK AND WOUNDED PEOPLE FROM EASTERN BOSNIA AND SIX OF THE EIGHT TRUCKS HAD TO PULL BACK MEANWHILE BOSNIA'S MUSLIMLED PRESIDENCY RAISED OBJECTIONS TO A PEACE PLAN 9303110027 930311 DIVIDEND NEWS JC PENNEY CO JC PENNEY CO DECLARED A 2FOR1 STOCK SPLIT PAYABLE MAY 1 TO STOCK OF RECORD APRIL 12 THE NEWS WAS WELCOMED BY INVESTORS WHO PUSHED THE REJUVENATED RETAILER'S STOCK UP 2375 TO 86 IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE PLANO TEXAS COMPANY SAID IT DECLARED THE SPLIT TO RECOGNIZE ITS STRONG PERFORMANCE IN 1992 WHICH HAS DRIVEN THE STOCK UP FROM A LOW OF 5075 IN JANUARY 1992 AFTER SEVERAL QUARTERS OF STAGNATION THE COMPANY'S NET INCREASED NEARLY TENFOLD IN 1992 TO 777 MILLION OR 631 A SHARE SALES INCREASED 11 TO 1802 BILLION 9303110026 930311 ECONOMY PROPOSED TAX INCENTIVES FOR BUSINESSES MAY HAVE LITTLE IMPACT ANALYSTS SAY BY AL EHRBAR STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S PROPOSED INVESTMENT TAX CREDIT AND CUTS IN BUSINESS TAXES WILL HAVE LITTLE EFFECT SOME LEADING ECONOMISTS AND TRADE GROUPS SAY BECAUSE THEY WILL BE OVERWHELMED BY THE EVEN LARGER INCREASES IN OTHER BUSINESS TAXES THE ADMINISTRATION MAINTAINS THAT ITS PROPOSED 192 BILLION OF BUSINESS TAX INCENTIVES FOR FISCAL 1993 AND 1994 ALONG WITH 163 BILLION OF NEW SPENDING WILL CREATE MORE THAN 400000 FULLTIME JOBS OVER THE NEXT 18 MONTHS WHILE ALSO SPURRING INCREASED SPENDING ON BUSINESS EQUIPMENT VIRTUALLY ALL ECONOMISTS AGREE THAT THE TEMPORARY TWOYEAR INVESTMENT CREDIT WILL GENERATE MORE SPENDING ON EQUIPMENT THIS YEAR AND NEXT BUT MANY DOUBT THAT THE IMPACT WILL BE AS GREAT AS THE PRESIDENT PROMISES THE TEMPORARY TAX CREDIT PROVIDES SOME SHORTTERM STIMULUS TO INVESTMENT SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS BUT IT WILL NOT BE A BIG BANG FOR THE BUCK AND THE PERMANENT INCREASE IN CORPORATE TAX RATES AND THE NEW ENERGY TAX WILL SWAMP THE INCENTIVE EFFECTS IN LATER YEARS BY THE NAM'S ARITHMETIC THE CLINTON PROPOSALS ADD UP TO 565 BILLION OF BUSINESS TAX CUTS AND 1701 BILLION OF BUSINESS TAX INCREASES BETWEEN NOW AND 1998 THE NET REDUCTION OF MORE THAN 100 BILLION IN CORPORATE CASH FLOWS HAS TO REDUCE INVESTMENT OVER THE FULL SIXYEAR PERIOD SAYS MR JASINOWSKI ECONOMISTS AT THE NAM CALCULATE THAT THE ENTIRE CLINTON PROGRAM INCLUDING INCREASES IN CORPORATE AND INDIVIDUAL INCOME TAXES SPENDING CUTS AND NEW SPENDING PROGRAMS WILL GENERATE AN ADDITIONAL 150000 JOBS BY NEXT YEAR NOT 400000 OVER SIX YEARS THE NAM SAYS THE CLINTON PROGRAM WILL ACTUALLY REDUCE JOB CREATION BY 12 MILLION THAT PROJECTION ASSUMES THAT DEFICIT REDUCTION WILL CAUSE LONGTERM INTEREST RATES TO DROP BY A HALF A PERCENTAGE POINT AND INCLUDES THE EFFECTS OF THE ADDED STIMULUS TO INVESTMENT SOME ECONOMISTS EVEN MAINTAIN THAT THE INVESTMENT TAX CREDIT AND OTHER TAX BREAKS FOR BUSINESS ACTUALLY ARE ANTIGROWTH IN THE SENSE THAT THE GOVERNMENT COULD DO MORE TO PROMOTE INVESTMENT AND JOB CREATION BY SCRAPPING THEM AND SETTLING INSTEAD FOR SMALLER TAX INCREASES ON HIGHINCOME INDIVIDUALS I COME TO THE CONCLUSION THAT THIS PACKAGE IS JUST A MISTAKE SAYS HARVARD ECONOMIST DALE JORGENSON A SPECIALIST ON BUSINESS TAXES MR JORGENSON SAYS THE ECONOMIC DAMAGE FROM AN ADDITIONAL DOLLAR OF TAXES ON HIGHINCOME INDIVIDUALS IS MORE THAN TWICE AS LARGE AS THE ECONOMIC BENEFIT FROM EACH DOLLAR OF INVESTMENT TAX CREDIT AND CREDITS FOR RESEARCH AND DEVELOPMENT THAT IS BECAUSE THE ADDED TAX REVENUES FROM HIGHINCOME INDIVIDUALS ARE LIKELY TO REDUCE THE INDIVIDUALS' SAVINGS ALMOST DOLLARFORDOLLAR WE WENT THROUGH THIS ANALYSIS IN THE 1986 TAX REFORM SAYS MR JORGENSON I THOUGHT EVERYONE UNDERSTOOD THE TRADEOFFS BUT APPARENTLY NOT BY HIS CALCULATIONS THE TRADEOFFS IN THE CLINTON PLAN ADD UP TO A NET EFFICIENCY LOSS MOSTLY IN THE FORM OF LOWER SAVINGS AND INVESTMENT OF ABOUT 55 CENTS FOR EACH DOLLAR OF INVESTMENT TAX CREDIT AND R&D CREDITS THAT IS THE ECONOMY WOULD GAIN ABOUT 55 CENTS ON THE DOLLAR IF PRESIDENT CLINTON SIMPLY REDUCED THE PLANNED INCREASE IN INDIVIDUAL INCOME TAXES BY THE AMOUNTS NOW BUDGETED FOR THE INVESTMENT TAX CREDIT AND R&D CREDITS A TREASURY DEPARTMENT OFFICIAL SPEAKING ON CONDITION OF ANONYMITY SAYS THE ADMINISTRATION DISAGREES WITH MR JORGENSON'S ANALYSIS AND IS CONFIDENT THAT A TEMPORARY INVESTMENT TAX CREDIT WILL YIELD GREATER BENEFITS THAN A LESSER INCREASE IN INDIVIDUAL TAXES CRITICISM OF MR CLINTON'S PLANS FOR BUSINESS TAXES HAS INCREASED AS ECONOMISTS AND TRADE GROUPS HAVE DIGESTED THE PROPOSALS AND ANALYZED THEIR LIKELY IMPACT THE CARROTS IN THE TAX PACKAGE INCLUDE A TWOYEAR 7 INVESTMENT TAX CREDIT ON PURCHASES OF BUSINESS EQUIPMENT ABOVE A BASE LEVEL A PERMANENT 5 INVESTMENT TAX CREDIT BEGINNING IN 1995 THAT WILL APPLY ONLY TO COMPANIES WITH REVENUE BELOW 5 MILLION AND RESTORATION OF THE 20 CREDIT FOR INCREMENTAL SPENDING ON RESEARCH AND DEVELOPMENT THAT EXPIRED IN JUNE LAST YEAR THE STICKS INCLUDE AN INCREASE IN THE TOP CORPORATE TAX RATE FROM 34 TO 36 EFFECTIVE THIS YEAR AND A BROADBASED ENERGY TAX THAT WOULD BE PHASED IN FROM JULY 1994 TO JULY 1996 MICHAEL BOSKIN PRESIDENT BUSH'S CHIEF ECONOMIST SAYS HE BELIEVES THE OVERALL CLINTON PROGRAM WILL REDUCE ECONOMIC GROWTH BY ABOUT 1 A YEAR IN THE NAM'S SIMULATIONS REAL GROWTH IS ABOUT 03 A YEAR LESS THAN IT WOULD BE UNDER THE PRECLINTON POLICY SOME OTHER ECONOMISTS MAKE A MORE FAVORABLE ASSESSMENT OF THE INVESTMENT TAX CREDIT AND OTHER TAX PROPOSALS ALLEN SINAI CHIEF ECONOMIST AT THE BOSTON CO SAYS THE INVESTMENT TAX CREDIT SHOULD BOOST INVESTMENT SPENDING BY ABOUT 25 THIS YEAR AND NEXT FOR A TOTAL INCREASE AFTER ADJUSTING FOR INFLATION OF ABOUT 10 THIS YEAR AND 7 TO 8 IN 1994 HOWEVER ECONOMISTS ALSO ARE CERTAIN THAT SOME OF THE ADDED SPENDING WILL COME FROM COMPANIES SPEEDING UP INVESTMENTS THEY OTHERWISE WOULD MAKE IN 1995 AND LATER YEARS IT'S HARD TO SAY HOW MUCH IS SHIFTING FROM LATER YEARS SAYS MR SINAI BUT THERE WILL BE MORE GROWTH IN THE NEAR YEARS THAN IN LATER YEARS NAM'S MR JASINOWSKI CONTENDS THAT A TEMPORARY CREDIT ALMOST ENTIRELY SHIFTS INVESTMENT FORWARD WITHOUT CREATING MUCH NEW' INVESTMENT SOME ECONOMISTS ARE PARTICULARLY SKEPTICAL ABOUT THE STIMULATIVE IMPACT OF THE PERMANENT 5 INVESTMENT TAX CREDIT FOR SMALL BUSINESS THAT IS BECAUSE THE TAX CREDIT GETS SCALED BACK FOR INVESTMENTS WITH TAX LIVES OF SEVEN YEARS OR LESS UNDER THE 5 CREDIT EQUIPMENT WITH A THREEYEAR TAX LIFE WHICH INCLUDES CARS TRUCKS AND COMPUTERS WOULD GET A CREDIT OF JUST 167 A 167 TAX CREDIT ON COMPUTER PURCHASES IS BARELY NOTICEABLE IN AN ERA WHEN COMPAQ COMPUTER CORP FOR ONE HAS BEEN CUTTING PRICES AT A RATE OF MORE THAN 1 A MONTH VIEWED ANOTHER WAY THE SAVINGS THAT A BUSINESS CAN HOPE FOR UNDER THE PROPOSED INVESTMENT TAX CREDIT ARE SMALLER THAN THE SAVINGS IN FINANCING COSTS FROM THE FALL IN INTEREST RATES SINCE THE ELECTION PROVIDED THAT THEY LAST THE REDUCTIONS IN INTEREST RATES WILL HAVE A MUCH GREATER EFFECT ON INVESTMENT THAN THE INVESTMENT TAX CREDIT SAYS MR SINAI 9303110025 930311 DOWN THE UP ESCALATOR WHY SOME WORKERS ARE FALLING BEHIND HIRED OUT WORKERS ARE FORCED TO TAKE MORE JOBS WITH FEW BENEFITS FIRMS USE CONTRACT LABOR AND TEMPS TO CUT COSTS AND INCREASE FLEXIBILITY CRITICS SAVINGS ARE ILLUSORY BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL LOU CAPOZZOLA WORKED 10 YEARS AT SPORTS ILLUSTRATED JETTING FROM SUPER BOWLS TO THE OLYMPICS AS A LIGHTING SPECIALIST HE WAS ON THE ROAD 180 DAYS A YEAR WORKING 15 TO 20HOUR DAYS IN FEBRUARY 1990 HE WAS CALLED INTO HIS BOSS'S OFFICE AND INFORMED THAT HIS JOB WAS BEING ELIMINATED BUT THAT HE COULD CONTINUE AS AN INDEPENDENT CONTRACTOR HIS BASE PAY WOULD BE ABOUT HALVED TO 20000 HIS OVERTIME PAY WOULD BE CUT BY AS MUCH AS TWOTHIRDS AND HE COULD FORGET ABOUT HIS 20000AYEAR BENEFIT PACKAGE INCLUDING MEDICAL COVERAGE THEN HE WAS ASKED TO LEAVE TOWN ON ASSIGNMENT THEY SAY WE VALUE YOU AND YOUR SKILLS WE'RE JUST GOING TO PULL THE RUG OUT FROM UNDER YOUR FEET BECAUSE WE WANT TO SAVE 20000' HE SAYS IN SPITE OF THE LOW PAY AND BENEFITS HE AGREED TO STAY ON HE WAS THE SOLE SUPPORTER OF A WIFE AND TWO CHILDREN WHAT COULD I DO THEY OFFERED ME SOME FORM OF EMPLOYMENT I HAD TO TAKE IT HE SAYS THIS IS THE 1990S WORKPLACE AFTER SPENDING YEARS AT ONE COMPANY MORE AMERICAN OFFICE AND FACTORY EMPLOYEES ARE GETTING TRANSPLANTED OVERNIGHT TO A TEMPORARY OR SUBCONTRACTING NETHER WORLD THEY DO THE SAME WORK AT THE SAME DESK FOR LESS PAY AND WITH NO HEALTH INSURANCE OR PENSION BENEFITS OTHERS ARE FARMED OUT TO AN EMPLOYMENT AGENCY WHICH PUTS THEM ON ITS PAYROLL TO SAVE THE MOTHER COMPANY PAPERWORK AND COST THEY THE COMPANIES FEEL LET SOME ONE ELSE HAVE THOSE HEADACHES' SAYS ROBERT LEFCORT CHIEF OPERATING OFFICER OF LABOR WORLD IN BOCA RATON FLA A FRANCHISER OF TEMPORARYHELP OFFICES BY USING US THEY DON'T HAVE TO DEAL WITH THE COSTS OF INJURIES DRUG SCREENING WORKERS' COMPENSATION AND UNEMPLOYMENT CLAIMS TEMPORARYHELP EMPLOYMENT GREW 10 TIMES FASTER THAN OVERALL EMPLOYMENT BETWEEN 1982 AND 1990 IN 1992 TEMPORARY JOBS ACCOUNTED FOR ABOUT TWOTHIRDS OF NEW PRIVATESECTOR JOBS AND THE BIG RISE IN NEW JOBS THIS JANUARY CAME ALMOST ENTIRELY FROM TEMPORARY AND PARTTIME JOBS WHEN TAKEN TOGETHER TEMPORARY CONTRACT AND PARTTIME WORKERS NOW MAKE UP ABOUT 25 OF THE WORK FORCE THAT PERCENTAGE COULD GROW WITH THE RECENTLY PASSED FAMILYLEAVE BILL WHICH FORCES FIRMS WITH MORE THAN 50 WORKERS TO PROVIDE EXTRA BENEFITS BY TURNING TO TEMPORARY AGENCIES SMALLER EMPLOYERS MAY FALL BELOW THE MAGIC NUMBER AND BE EXEMPT FROM PROVIDING THOSE BENEFITS AND WHILE MANY PEOPLE ESPECIALLY WOMEN WITH YOUNG CHILDREN PREFER THE FREEDOM OF A TEMPORARY JOB AN INCREASING NUMBER ARE FORCED INTO IT FOR BETTER OR WORSE CONTINGENT WORKERS A TERM ENCOMPASSING TEMPORARY AND PARTTIME HELP CONTRACT LABORERS AND LEASED EMPLOYEES ARE THE MEDIUM FOR A CORPORATE AMERICA PREACHING A MESSAGE OF FLEXIBILITY AND COST CUTTING INCREASED GLOBAL AND DOMESTIC COMPETITION IS PROMPTING COMPANIES TO CULTIVATE A JUSTINTIME BAREBONES AND CHEAPER WORK FORCE CONTINGENT WORKERS COST AN ESTIMATED 20 TO 40 LESS THAN CORE EMPLOYEES COST IS WHY TIME WARNER INC THE PARENT OF SPORTS ILLUSTRATED CHANGED MR CAPOZZOLA'S STATUS IT MADE MORE ECONOMIC SENSE TO HAVE INDEPENDENT CONTRACTORS ON CALL AROUND THE COUNTRY THAN TO HAVE A STAFF EMPLOYEE FLYING ALL OVER AND ACCUMULATING HEAVY OVERTIME PETER COSTIGLIO VICE PRESIDENT FOR COMMUNICATIONS FOR TIME INC SAYS WE LOOKED AT THE JOB AND OUR NEEDS AND FELT WE COULD DO IT MORE COST EFFECTIVELY ON A CONTRACTUAL BASIS AN ARBITRATOR AGREED WITH THE MAGAZINE'S COST ARGUMENT AND DENIED MR CAPOZZOLA'S REINSTATEMENT A COMPANY USING CONTRACT LABOR MAY SAVE MONEY MR CAPOZZOLA SAYS BUT IT'S ALWAYS ON THE LITTLE GUY'S BACK IT MAY END UP ON SOCIETY'S BACK SAYS JOHN WELLS OF THE GRAY INSTITUTE FOLLOWING A DEADLY 1989 EXPLOSION AT A PHILLIPS 66 PLANT IN HOUSTON INVOLVING CONTRACT WORKERS THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION HIRED THE GRAY INSTITUTE TO STUDY CONTRACT LABOR IN THE PETROCHEMICAL INDUSTRY MR WELLS BELIEVES THAT CONTINGENT LABOR MEANS MILLIONS OF PEOPLE WORK VERY HARD FULLTIME YET HAVE NO BENEFITS WHO PAYS THE TAXPAYERS EVERY TIME THEY GET SICK NO ONE DISPUTES THE NEED FOR A MORE FLEXIBLE WORKPLACE AND MANY ARGUE THAT CORPORATE AMERICA'S CAMPAIGN TO CUT LABOR COSTS AND INCREASE PRODUCTIVITY ULTIMATELY WILL STIMULATE THE ECONOMY ACCELERATE JOB GROWTH AND DRIVE UP WAGES MEANWHILE HOWEVER CRITICS OF LOWPAY NOBENEFITS CONTINGENCY SAY IT CAN BE DONE IN A MORE HUMANE FASHION PAUL RUPERT A MANAGER AT THE BOSTON CONSULTING FIRM OF RODGERS & ASSOCIATES SUGGESTS PRORATED BENEFITS JOB SHARING OR PHASEDIN RETIREMENT ALONG WITH RETRAINING OR REDEPLOYING EMPLOYEES DURING DOWNTURNS ALTHOUGH THESE APPROACHES MAY COST MORE INITIALLY HE CONTENDS COMPANIES ULTIMATELY BENEFIT FROM LOWER ABSENTEE RATES REDUCED TURNOVER BETTER MORALE AND GREEATER JOB SATISFACTION AND PRODUCTIVITY ALTHOUGH MORE POPULAR THAN EVER CONTINGENCY LABOR ISN'T NEW AND HISTORY SUGGESTS WORKERS SWEPT INTO IT MAY NEVER ESCAPE ASK JESSIE MAE JOHNSON IN THE 1950S WHEN SHE BEGAN WAITING TABLES AT THE CITADEL THE STATEOWNED MILITARY SCHOOL IN CHARLESTON SC IT PROVIDED REGULAR PAY RAISES RETIREMENT BENEFITS AND HEALTH INSURANCE BUT SHE LOST ALL OF THAT IN THE LATE 1960S WHEN THE STATE TURNED THE CITADEL'S FOOD OPERATION ALONG WITH ITS EMPLOYEES OVER TO A UNIT OF THE PRIVATE PHILADELPHIA FIRM ARA SERVICES INC THIRTYFOUR YEARS LATER MRS JOHNSON EARNS 470 AN HOUR AND HAS NO BENEFITS AN ARA SPOKESMAN SAYS OUR PEOPLE FEEL THEY PAY COMPETITIVE WAGES AND WE'VE NEVER HAD ANY DIFFICULTY RETAINING PEOPLE THE HAZY STATUS OF CONTRACT WORKERS REDUCES THEIR RIGHTS WHEN ARA WORKERS AT THE CITADEL ALL BLACK NEARLY ALL WOMEN AND NEARLY ALL LONGTERM EMPLOYEES EARNING LESS THAN 5 AN HOUR VOTED TO UNIONIZE ARA REFUSED TO BARGAIN IT SAID THE CITADEL STILL CONTROLLED WAGES EVEN THOUGH IT WASN'T THEIR EMPLOYER IN DECEMBER THE NATIONAL LABOR RELATIONS BOARD AGREED WITH ARA THEY'RE IN NO MAN'S LAND SAYS CHARLES TAYLOR OF THE CAROLINA ALLIANCE FOR FAIR EMPLOYMENT THEY'RE NEITHER GOVERNMENT EMPLOYEES WITH BENEFITS AND REGULAR WAGE INCREASES NOR PRIVATE SECTOR WORKERS WITH THE RIGHT TO ORGANIZE LAWS THAT CONGRESS AND MANY STATES PASSED TO PROTECT EMPLOYEES FROM SUCH PROBLEMS AS SEX AND AGE DISCRIMINATION ARE PROTECTING FEWER AND FEWER WORKERS PARTICULARLY INDEPENDENT CONTRACTORS THE AMERICAN MANAGEMENT ASSOCIATION A NONPROFIT GROUP DEDICATED TO IMPROVING BUSINESS MANAGEMENT ELIMINATED ITS SALES PEOPLE AND REHIRED SOME AS INDEPENDENT CONTRACTORS IN 1982 THEN IN THE LATE 1980S IT FIRED SEVERAL INDEPENDENT CONTRACTORS WHO WERE OVER 50 INCLUDING A 31YEAR VETERAN OF THE ASSOCIATION WHO HAD BEEN NAMED ONE OF THE ASSOCIATION'S TOP FIVE SALESPEOPLE IN 1988 AND 1989 WHEN THE FIRED SALESPEOPLE FILED SUIT ALLEGING AGE DISCRIMINATION THE ASSOCIATION ARGUED THAT THE LAW PRECLUDED SUCH A CLAIM BECAUSE THE PLAINTIFFS WEREN'T EMPLOYEES OF THE GROUP NEVER MIND THAT IT HAD TRAINED THEM PROVIDED SECRETARIES STATIONERY AND OFFICE SPACE AND PROHIBITED THEM FROM DOING BUSINESS WITH COMPETITORS EMPLOYEES BECOME QUITE HELPLESS BECAUSE THEY DON'T HAVE ANY LEVERAGE WITH ANYONE CONTENDS DANIEL BOONE THE NEW YORK ATTORNEY WHO REPRESENTED THE PLAINTIFFS THE CASE WAS SETTLED LAST MONTH OUT OF COURT AND THE MANAGEMENT ASSOCIATION DECLINES TO DISCUSS IT TEMPORARY WORK ARRANGEMENTS ARE SEEPING LIKE MIST INTO EVERY CORNER OF AMERICAN LIVELIHOOD FROM DATA PROCESSORS AND BANK TELLERS TO NURSES ENGINEERS AND PUBLIC RELATIONS AND ASSEMBLY WORKERS A FULLTIME JOB IS BECOMING SO COVETED THAT SOME PEOPLE SPEND FIVE YEARS WORKING AT ONE LOCATION AS TEMPORARIES HOPING LIKE HOLLYWOOD FAITHFULS TO BE DISCOVERED WHEN WES PIERCE MOVED TO GREENVILLE SC IN 1990 THE ELECTRICIAN LANDED A JOB THROUGH A TEMPORARY AGENCY TO REBUILD LOCOMOTIVES FOR REPUBLIC LOCOMOTIVE FOR 8 AN HOUR ALTHOUGH HE HAD BEEN MAKING NEARLY DOUBLE THAT IN VIRGINIA HE WANTED TO BE CLOSER TO HIS CHILDREN FROM HIS FIRST MARRIAGE AND WAS CONFIDENT HE WOULD BE MADE PERMANENT HE SAYS HE WAS PROMISED PERMANENT WORK WITHIN THREE MONTHS IF HE DID GOOD WORK BUT NOTHING HAPPENED INSTEAD HE WAS ENCOURAGED TO CONTINUE WORKING HARD WITHOUT BENEFITS INTENT ON PROVING HOW MUCH HE WANTED TO BE A PART OF THE COMPANY MR PIERCE DID MENIAL TASKS LIKE CHANGING LIGHT BULBS PUTTING TAGS ON WIRES AND CARRYING HEAVY EQUIPMENT HE EVEN JOINED THE COMPANY SOFTBALL TEAM DURING ONE PRACTICE HE BROKE HIS LEG IN TWO PLACES AND TORE ALL HIS TENDONS AND LIGAMENTS HE WAS IMMEDIATELY LET GO UNABLE TO WORK AND WITH NO INSURANCE HE HIS WIFE AND TWO STEPCHILDREN WENT THROUGH THE FAMILY'S SAVINGS AND BORROWED MONEY FROM THEIR PARENTS HE COULDN'T AFFORD SURGERY TO PROPERLY FIX THE TENDONS THEY KEPT DANGLING THIS CARROT OF FULLTIME WORK IN FRONT OF ME HE SAYS I JUST WANTED TO KNOW DO I HAVE A JOB A REPUBLIC LOCOMOTIVE SPOKESWOMAN SAYS TO MY KNOWLEDGE NO MEMBER OF THE REPUBLIC MANAGEMENT TEAM EVER MADE A PROMISE OF FULLTIME WORK RESULTING FROM TEMPORARY EMPLOYMENT SHE ADDS THAT THOUGH REPUBLIC EMPLOYED TEMPORARY WORKERS IN 1990 TO HELP FULFILL A MAJOR CONTRACT IT NO LONGER EMPLOYS ANY SOME PEOPLE THRIVE ON TEMPORARY EMPLOYMENT KAREN CERRONE SAYS WORKING FOR PANCOAST TEMPORARY SERVICES IN PITTSBURGH GIVES HER FLEXIBILITY TO TRAVEL TO SUMMER TRAINING AND WORLD SERIES GAMES WITH HER HUSBAND VICE PRESIDENT OF PUBLIC RELATIONS FOR THE PITTSBURGH PIRATES MOREOVER THOSE WORKING FOR LARGE AGENCIES HAVE A ONEINTHREE CHANCE OF LANDING A PERMANENT JOB MANPOWER INC FOR ONE OFFERS SOME TRAINING AND BENEFITS CONTINGENT WORKERS CAN ENABLE COMPANIES TO BOOST PRODUCTION WITHOUT INCREASING THEIR WORK FORCE BUT IF CONTINGENCY SOLVES CERTAIN COST PROBLEMS IT CAN ALSO CREATE UNFORESEEN HEADACHES FOR COMPANIES CONSIDER THE LARGE MANUFACTURER ENGAGED IN UNION NEGOTIATIONS IT HAD COMPILED A STRATEGIC GAME PLAN IN WHICH COLLECTIVE BARGAINING GOALS FALLBACK POSITIONS AND OTHER STRATEGIES WERE SPELLED OUT IN DETAIL THE COMPANY ONE OF 50 CASE STUDIES COMPILED BY RICHARD BELOUS OF THE NATIONAL PLANNING ASSOCIATION HAD CONTINGENT CLERICAL WORKERS WITH ACCESS TO THE INFORMATION THE CONTINGENT WORKERS LEAKED THE ENTIRE GAME PLAN TO UNION OFFICIALS THE FIASCO MADE COMPANY OFFICIALS REALIZE THEY HAD LITTLE POWER OVER A CONTINGENT WORK FORCE THAT IN TURN HAD NO REASON FOR SHOWING LOYALTY I CALL IT A PHANTOM WORK FORCE SAYS ANOTHER EXECUTIVE IN MR BELOUS'S STUDY WE DON'T KNOW HOW TO CONTROL IT OR WHO IN THE COMPANY SHOULD CONTROL IT MORALE AND WORK QUALITY ALSO BECOME AN ISSUE BEVERLY GARNER STARTED WORK IN OCTOBER 1991 AS A TEMPORARY DOING QUALITYCONTROL WORK AT SCHMID LABORATORIES WHICH MAKES CONDOMS IN ANDERSON SC EAGER TO LAND A FULLTIME SLOT SHE CAME IN EARLY AND WORKED THROUGH BREAKS EARNING 5 AN HOUR WHILE FULLTIMERS EARNED 8 WHEN NO FULLTIME JOB MATERIALIZED BY JULY 1992 SHE BECAME FRUSTRATED AND ANGRY AND ON OCCASION SHOWED UP LATE A DAY AFTER SHE TOLD SUPERVISORS ABOUT HAVING ATTENDED A MEETING ON THE RIGHTS OF TEMPORARY EMPLOYEES SHE WAS FIRED FOR COMING INTO WORK A FEW MINUTES LATE ON 11 OCCASIONS AND BEING SICK ON MORE THAN THREE DAYS SHE DOESN'T DENY IT IT GOT TO THE POINT I HATED TO GO TO WORK I HATED WHO I WORKED FOR BECAUSE I WASN'T BEING PAID OR TREATED FAIRLY AND I KNOW I WAS LESS PRODUCTIVE BECAUSE I WAS SO DISHEARTENED SHE SAYS MOREOVER SHE CONTENDS QUALITY SUFFERED FROM CONSTANT INFLUX OF TEMPORARIES EVERY TIME YOU'D GET A BIG BATCH OF NEW PEOPLE YOU'D START FINDING MORE HOLES IN THE CONDOMS SHE SAYS ROY KELLY PERSONNEL MANAGER FOR SCHMID CONCEDES THAT NEW EMPLOYEES MUST GO THROUGH A LEARNING CURVE BUT SAYS STRINGENT QUALITYCONTROL MEASURES ARE IN PLACE TO PREVENT DEFECTIVE CONDOMS FROM REACHING THE CONSUMER HE SAYS TEMPORARIES WHO ACCOUNT FOR 30 OF SCHMID'S WORK FORCE ENABLE IT TO BETTER MANAGE INVENTORY AVOIDING LARGE BUILDUPS WE'VE GROWN TO SORT OF DEPEND ON THEM HE SAYS MR KELLY SAYS HE UNDERSTANDS TEMPORARIES' FRUSTRATIONS ABOUT BEING PAID LESS THAN FULLTIMERS BUT SAYS THE AGENCY NOT THE COMPANY SETS WAGES AND BENEFITS A TEMPORARY AGENCY CHARGES ITS CLIENTS SO MUCH PER WORKER AND THEN PASSES ON TO THE WORKER A CERTAIN PERCENTAGE OF THAT AMOUNT THE WORKER MUST RECEIVE AT LEAST MINIMUM WAGE SOME COMPANIES' ATTEMPTS TO AVOID LIABILITY FOR CONTRACT WORKERS CAN LEAVE BOTH SIDES ALL THE MORE EXPOSED IN AN INTERNAL MEMO DU PONT CO'S CONSOLIDATED COAL UNIT TELLS ITS EMPLOYEES THAT WHEN THEY SEE A CONTRACT EMPLOYEE DOING SOMETHING DANGEROUS OR ILLEGAL THEY SHOULD NOT INTERFERE UNLESS COMPANY PROPERTY OR EMPLOYEES ARE ENDANGERED THE UNIT KNOWN AS CONSOL SAYS THE MEMO DOESN'T ENCOURAGE EMPLOYEES TO LOOK THE OTHER WAY BUT RATHER ESTABLISHES THAT THE CONTRACTOR HAS THE OBLIGATION AND RESPONSIBILITY TO INSURE THE SAFETY OF ITS OWN EMPLOYEES LAST SPRING THREE CONTRACTORS FOR CONSOL AND ONE CONSOL EMPLOYEE WERE KILLED IN A WEST VIRGINIA COAL MINE EXPLOSION THE CONTRACTORS WERE WELDING A PIPE IN AN AREA KNOWN TO BE HEAVY WITH METHANE GAS FEDERAL AND STATE AUTHORITIES CITED CONSOL AND THE CONTRACTOR FOR FAILING TO VENTILATE THE AREA AND TO EXAMINE FOR METHANE GAS CONSOL PLANS TO APPEAL ALL CITATIONS LIABILITY ISSUES ASIDE THERE ARE OCCASIONS WHEN USE OF CONTINGENT WORKERS FAILS TO ACHIEVE EVEN THE PRIMARY OBJECTIVE COST SAVINGS A FORTUNE 500 COMPANY ASKED GEORGETOWN UNIVERSITY'S STANLEY NOLLEN TO SEE IF IT WAS CHEAPER TO USE CONTINGENT WORKERS IN DATA ENTRY OPERATIONS HIS ANSWER NO OUTPUT BY CONTINGENT WORKERS WAS 8 LESS WHILE THEIR COMPENSATION WAS ONLY 6 LESS THAN FULLTIME WORKERS AND THE COMPANY STILL HAD TO PROVIDE CONTINGENT WORKERS 200 HOURS OF TRAINING I DON'T THINK THESE PARTICULAR WORKERS WERE BEING EXPLOITED BUT I DO KNOW THAT THE COMPANY WAS NOT MAKING MONEY HE SAYS 9303110024 930311 BUSINESS BRIEF ACUSON CORP COMPANY FILES TWO CLAIMS AGAINST HEWLETTPACKARD ACUSON CORP SAID IT FILED TWO CLAIMS AGAINST HEWLETTPACKARD CO IN A PATENT INFRINGEMENT DISPUTE IN FEDERAL DISTRICT COURT IN SAN FRANCISCO THE MAKER OF MEDICAL DIAGNOSTIC ULTRASOUND SYSTEMS BASED IN MOUNTAIN VIEW CALIF SAID IT FILED A CLAIM LAST THURSDAY ALLEGING HP INFRINGED ON AN ULTRASOUND PATENT DEVELOPED BY SAMUEL MASLAK ACUSON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IT FILED A SECOND ULTRASOUND PATENT INFRINGEMENT CLAIM MONDAY THE CLAIMS SEEK AN INJUNCTION AND UNSPECIFIED DAMAGES FROM HP HEWLETTPACKARD FILED A PATENT INFRINGEMENT CLAIM MONDAY IN FEDERAL COURT AGAINST ACUSON THE SAN FRANCISCO COMPUTER MAKER IS SEEKING AN INJUNCTION AND UNSPECIFIED DAMAGES FROM ACUSON CHARLES H DEARBORN ACUSON'S GENERAL COUNSEL SAID IN A STATEMENT THAT THE US PATENT OFFICE HAD DETERMINED LAST WEEK THAT THE INITIAL PATENT CLAIM FILED LAST WEEK BELONGED TO ACUSON BOTH COMPANIES DENIED PATENT INFRINGEMENTS 9303110023 930311 MARKETING & MEDIA MARKETSCAN LOTIONLACED TISSUES PROMISE TO SAVE FACE BY KATHLEEN DEVENY CONSIDER THE LOWLY FACIAL TISSUE IT'S A MUNDANE PRODUCT THAT MOST CONSUMERS THINK WORKS PERFECTLY WELL BUT DURING THIS COLD AND FLU SEASON KIMBERLYCLARK CORP IS HOPING IT CAN CONVINCE THE SNIFFLING MASSES THAT IT HAS FINALLY BUILT A BETTER KLEENEX THE DALLASBASED COMPANY RECENTLY COMPLETED THE NATIONAL ROLLOUT OF KLEENEX ULTRA A DISPOSABLE HANKY LACED WITH LOTION TO PAMPER NOSES SORE FROM TOO MUCH BLOWING THE MOVE MARKS KIMBERLYCLARK'S LATEST EFFORT TO BREATHE SOME LIFE INTO THE SLOWGROWING 113 BILLION MARKET FOR FACIAL TISSUE IT ALSO REPRESENTS A DEFENSIVE MANEUVER BY THE TISSUEMARKET LEADER KLEENEX ULTRA IS AIMED SQUARELY AT PUFFS PLUS A LOTIONLACED VERSION MADE BY PROCTER & GAMBLE CO KLEENEX'S CLAIM IT'S OILFREE LOTION DOESN'T LEAVE A RESIDUE ON THE SKIN AS PUFFS DOES SO FAR PROCTER & GAMBLE IS MUM ABOUT ITS RESPONSE TO THE NEW COMPETITION BUT MARKETING EXPERTS PREDICT THE ENTRY OF KLEENEX ULTRA WILL SPARK A FIERCE ROUND OF COUPON AND OTHER PROMOTIONS AS P&G DEFENDS PUFFS' MARKET SHARE PUFFS PLUS ACCOUNTED FOR 115 OF FACIAL TISSUE SALES IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS IN THE 13 WEEKS ENDED DEC 27 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE BUT QUARTERLY SALES OF PUFFS PLUS FELL NEARLY 3 FROM A YEAR EARLIER TO 346 MILLION MEANWHILE SALES OF KLEENEX ULTRA WHICH HAS BEEN IN TEST MARKETS SINCE 1991 JUMPED 388 TO 87 MILLION ANALYSTS CITE KIMBERLYCLARK'S WELLREGARDED SALES FORCE AS AN ADVANTAGE ALSO IN ITS FAVOR THE 69YEAROLD BRAND DOMINATES THE TISSUE MARKET WITH NEARLY A 50 SHARE SO MUCH SO THAT COMPANY ATTORNEYS ARE CONSTANTLY BATTLING TO KEEP THE KLEENEX NAME FROM BECOMING A GENERIC TERM FOR TISSUES STILL LONGTERM SUCCESS FOR KLEENEX ULTRA IS FAR FROM CERTAIN MARKETERS SPIN OUT NEWANDIMPROVED VERSIONS OF PERFECTLY ACCEPTABLE PRODUCTS SO THEY CAN CHARGE CONSUMERS MORE BUT TODAY'S PENNYPINCHING SHOPPERS MAY NOT RESPOND ENTHUSIASTICALLY THE SUGGESTED RETAIL PRICE OF A BOX OF KLEENEX ULTRA IS ABOUT THE SAME AS A BOX OF REGULAR KLEENEX BUT IT CONTAINS ONLY ABOUT 60 AS MANY TISSUES AS THE SAME SIZE BOX OF REGULAR KLEENEX CONSUMERS HAVE TURNED UP THEIR NOSES AT MANY TISSUE INITIATIVES OVER THE PAST DECADE PROCTER & GAMBLE FIRST TESTED A TISSUE WITH LOTION IN 1984 CALLED PUFFS SPECIAL TOUCH THE COMPANY CONTINUED TO TINKER WITH THE SLUGGISH PRODUCT EVENTUALLY CHANGING THE NAME TO PUFFS PLUS IN 1987 P&G'S EFFORTS TO INTEREST CONSUMERS IN A TOILET TISSUE WITH LOTION CALLED CERTAIN FELL FLAT THOUGH IT STILL SELLS CHARMIN PLUS WHICH CONTAINS BABY LOTION KIMBERLYCLARK'S ATTEMPTS TO LAUNCH A HIGHERMARGIN TISSUE HAVE FARED EVEN WORSE IN 1984 THE COMPANY TESTED AVERT A TISSUE TREATED WITH A SUBSTANCE THE COMPANY CLAIMED WOULD KILL COLD VIRUSES PREVENTING THEIR SPREAD TO OTHERS BUT THE PRICEY PRODUCT APPARENTLY PROVED TOO ALTRUISTIC FOR CONSUMERS AND WAS REMOVED FROM THE MARKET IN 1987 SIMILARLY SCOTT PAPER CO THE NO 3 FACIALTISSUE MAKER TESTED KACHOOS MINIATURE TISSUES AIMED AT TOTS BUT HAS SINCE DISCONTINUED THE PRODUCT IT'S FAR TOO SOON TO CALL KLEENEX ULTRA A SUCCESS BUT THE NEW PRODUCT IS OFF TO A STRONG START IT GRABBED 29 OF THE TOTAL TISSUE MARKET IN THE 1992 FOURTH QUARTER CLEARLY THERE IS A SEGMENT OF THE MARKET THAT WANTS THESE PRODUCTS AND IS WILLING TO PAY FOR THEM SAYS BONITA AUSTIN AN ANALYST WITH SHEARSON LEHMAN BROTHERS INC BUT IT REMAINS UNCLEAR WHETHER KLEENEX ULTRA WILL GROW THE MARKET THE TOTAL FACIAL TISSUE MARKET DIDN'T GROW AT ALL IN 1992 AND MARKETING EXPERTS SAY IT'S UNLIKELY KIMBERLYCLARK CAN COAX MORE CONSUMERS TO USE TISSUES WITH LOTION CONSUMERS MAY ALSO HAVE A DIFFICULT TIME DISCERNING THE DIFFERENCE BETWEEN THE TWO TISSUEWITHLOTION PRODUCTS THE QUESTION IS WHETHER THE CONSUMER REALLY WANTS THIS OR WHETHER THIS IS JUST A METOO PRODUCT SAYS ROBERT MCMATH DIRECTOR OF THE NEW PRODUCTS SHOWCASE AND LEARNING CENTER IN ITHACA NY TO ME THIS SEEMS LIKE MUCH ADO ABOUT NOTHING NEW PROCTER & GAMBLE MEANWHILE IS IN THE PROCESS OF ROLLING OUT A POCKETSIZED PRODUCT CALLED PUFFS TO GO WHICH FEATURES FULLSIZED EXTRASTRENGTH TISSUES AND IN THE MIDWEST SCOTT IS TESTING A FACIAL TISSUE MADE FROM RECYCLED FIBER BUT KIMBERLYCLARK IS COUNTING ON THE SILICONEBASED LOTION IT USES TO MAKE KLEENEX ULTRA TO DISTINGUISH IT FROM PUFFS PLUS AND KEEP ITS SALES GROWING THE COMPANY IS PITCHING ITS NEW PRODUCT AS AN ALLPURPOSE TISSUE NOT MERELY ONE MEANT TO SOOTHE CHAPPED NOSES CAUSED BY TOO MUCH BLOWING THE PRODUCTS' PACKAGING INFORMS CONSUMERS THAT UNLIKE LOTION IN OTHER TISSUES THE LOTION IN KLEENEX ULTRA IS OILFREE SO THE TISSUE CAN BE USED FOR ALL PURPOSES EVEN CLEANING YOUR GLASSES NEWPRODUCT EXPERTS HOWEVER CALL THE STRATEGY RISKY CONSUMERS ARE UNLIKELY TO WANT TO USE A LOTIONLACED TISSUE TO CLEAN THEIR GLASSES OR REMOVE COSMETICS ON THE OTHER HAND IF THE KIMBERLYCLARK PRODUCT FEELS TOO MUCH LIKE A REGULAR WIPE IT COULD CONFUSE CONSUMERS AND LEAVE THEM WONDERING WHY THEY SHOULD PAY MORE FOR IT CONSUMERS ARE INTERESTED IN THIS SORT OF THING ONLY IF IT HAS A VERY CLEAR BENEFIT SAYS MR MCMATH BUT HOW MANY PEOPLE REALLY HAVE A SORE NOSE THAT OFTEN KLEENEX ULTRA LACED WITH AN OILFREE LOTION IS CHALLENGING LOTIONLADEN PUFFS PLUS IN MARKETERS' LATEST EFFORT TO BREATHE SOME LIFE INTO THE SLUGGISH 113 BILLION MARKET FOR FACIAL TISSUE 9303110022 930311 MERC BOSS'S BID FOR SECOND TERM BOOSTED BY HIS HANDLING OF TRADE CENTER DISASTER BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOMB BLAST AT THE WORLD TRADE CENTER SEEMS TO HAVE RESURRECTED Z LOU GUTTMAN'S CHANCES OF BEING REELECTED CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE NINE DAYS EARLIER MR GUTTMAN HAD BEEN FORMALLY ACCUSED OF VIOLATING FEDERAL COMMODITYTRADING LAWS THE FIRST TIME FOR A SITTING CHAIRMAN OF A MAJOR US COMMODITY EXCHANGE MR GUTTMAN DENIED WRONGDOING BUT THE FLAMBOYANT MERC CHIEF WAS UNDENIABLY EMBARRASSED AND SET BACK IN HIS REELECTION BID THEN ON FRIDAY FEB 26 THE BLAST SHOOK THE NEXTDOOR TWIN TOWERS AUTHORITIES WERE PREPARED TO SHUT DOWN NEW YORK'S FIVE BIG COMMODITY EXCHANGES WITHIN THE WORLD TRADE CENTER COMPLEX MR GUTTMAN PUT HIS WEIGHT BEHIND AN 11THHOUR EFFORT TO REOPEN FUTURES TRADING ON THE MONDAY FOLLOWING THE BLAST HE GOT RESULTS AND IN THE PROCESS FOUND HIMSELF BACK IN CONTENTION FOR THE 100000AYEAR CHAIRMANSHIP OF THE WORLD'S LARGEST ENERGYFUTURES MARKET IN A CRISIS NOBODY'S BETTER THAN LOU FOR THE EXCHANGE SAYS STEVE KARVELLAS A SENIOR MERC FLOOR TRADER WHO SAYS HE IS A FRIEND OF BOTH MR GUTTMAN AND HIS OPPONENT MERC VICE CHAIRMAN DANIEL RAPPAPORT IF IT WASN'T FOR LOU THE EXCHANGES WOULDN'T HAVE OPENED ON MONDAY AFTER THE BOMBING AND NOW THE ELECTION ON TUESDAY WILL BE A DOG FIGHT MR KARVELLAS PREDICTS MR GUTTMAN A 43YEAROLD FORMER PLATINUM AND HEATINGOIL TRADER WHO CAN BE GRUFF AND CHARMING IN TURNS HAS BEEN THE MERC'S CHAIRMAN AND CHIEF EXECUTIVE SINCE 1988 AND HAS RUN UNOPPOSED IN THE TWO MOST RECENT ELECTIONS MR RAPPAPORT WAS ON VACATION WITH HIS FAMILY IN KEY BISCAYNE FLA AT THE TIME OF THE BLAST AND REMAINED THERE THE FOLLOWING DAY SEVERAL MERC MEMBERS QUESTIONED WHY MR RAPPAPORT DIDN'T RETURN IMMEDIATELY I WAS IN TOUCH OVER THE PHONE WITH MY EXCHANGE'S PRESIDENT AND GENERAL COUNSEL THEY SAID IT WASN'T NECESSARY TO RETURN MR RAPPAPORT SAID IF I WERE CHAIRMAN I WOULD HAVE BEEN THERE HE SAID HE RETURNED TO NEW YORK SUNDAY MORNING AND HUDDLED WITH BOARD MEMBERS COLORFUL COMBATIVE AND CONTROVERSIAL MR GUTTMAN LAST MONDAY CIRCULATED A THREEPAGE CAMPAIGN LETTER IN BOLD TYPE WITH A PHOTO OF HIMSELF AND THE SLOGAN EXPERIENCED DECISIVE MATURE VISION THE LETTER TOUTED IMPORTANT STRIDES HE ASSERTS THE MERC HAS MADE UNDER HIS TENURE AND HIS PROPOSAL TO TURN THE EXCHANGE INTO A FORPROFIT CORPORATION BY CONTRAST THE LOWERPROFILE MR RAPPAPORT 39 YEARS OLD CIRCULATED A ONEPAGE LETTER IN REGULAR TYPE AND WITHOUT A PHOTO IN IT HE EXPRESSED A DESIRE TO CORRECT THE UNINSPIRED OPERATING ENVIRONMENT AT THE EXCHANGE DURING MR GUTTMAN'S TENURE INDEED THE NEW YORK MERC HAS EMERGED AS THE ONLY BOOMING COMMODITY MARKET IN TOWN TRADING VOLUME LAST YEAR JUMPED 16 TO A RECORD 47 MILLION CONTRACTS SINCE 1988 VOLUME HAS SOARED 84 AND SEAT PRICES HAVE JUMPED ALMOST 40 TO AROUND 260000 EVEN SO THE MAIN ISSUE IN TUESDAY'S VOTE MAY BE PROPRIETY RATHER THAN PROSPERITY THE CHAINSMOKING MR GUTTMAN STANDS ACCUSED BY THE COMMODITY FUTURES TRADING COMMISSION NOT OF MAKING ILLEGAL TRADES HIMSELF BUT OF BEING SECONDARILY LIABLE AS A CONTROLLING PERSON OF A JOINT ACCOUNT ALLEGED TO HAVE ENGAGED IN ILLICIT PREARRANGED TRADES ON ANOTHER NEW YORK EXCHANGE IN 1989 THE CASE COULD TAKE YEARS TO ADJUDICATE THE SOFTSPOKEN MR RAPPAPORT THE EXCHANGE NOMINATING COMMITTEE'S CANDIDATE IS A SEVENYEAR VETERAN OF THE MERC BOARD WHO MINGLES EASILY WITH HIS FELLOW FLOOR TRADERS HE HAS A LAW DEGREE AND AN MBA MR RAPPAPORT WHO SERVED AS ACTING CHAIRMAN FOR FIVE MONTHS LAST YEAR WHEN MR GUTTMAN TOOK TIME OFF TO REVIEW HIS LEGAL CASE ACCUSES THE INCUMBENT OF FAILING TO PLAN FOR THE LONGTERM WE HAVE FEWER PRODUCTS IN THE WORKS FOR DEVELOPMENT THAN AT ANY TIME IN RECENT EXCHANGE HISTORY HE ASSERTS A PROPOSED CONTRACT FOR ELECTRICITY FUTURES HAS BEEN LANGUISHING FOR MONTHS WITH STAFF HE SAYS AND THERE NEEDS TO BE MORE CONSIDERATION GIVEN TO POTENTIALLY LUCRATIVE DERIVATIVE PRODUCTS SUCH AS JETFUEL CONTRACTS MOREOVER HE THINKS MR GUTTMAN'S PLAN TO CHANGE THE MERC INTO A FORPROFIT CORPORATION IS ILLCONCEIVED ARGUING THAT EXPANDING THE EXCHANGE'S WAR CHEST FOR ACQUISITIONS NEW PRODUCTS AND FOR FINANCIAL SECURITY IN BAD TIMES MAKES MORE SENSE THAN DISTRIBUTING OPERATING PROFITS TO MEMBERS AT YEAR END MR RAPPAPORT CONCEDES HE WILL GET SOME VOTES BECAUSE OF THE CFTC CHARGES BUT ADDS I HOPE THAT THE ELECTION DOESN'T COME DOWN TO PEOPLE'S JUDGMENT ON THE UNFORTUNATE SITUATION THAT LOU FINDS HIMSELF IN THE MAIN ISSUE IS TRADING OPPORTUNITIES FOR MEMBERS AND OUR CONSTITUENTS MR GUTTMAN UNABASHEDLY TAKES A LOT OF CREDIT FOR THE LAUNCHING OF NATURALGAS FUTURES CONTRACT WHOSE VOLUME QUADRUPLED LAST YEAR PLANS TO MOVE TO A NEW STATEOFTHEART 80 MILLION TRADING FACILITY IN AN EXISTING BUILDING IN NEW YORK BY LATE 1994 AND FOR THE IMPLEMENTATION OF A NEW ELECTRONIC TRADING SYSTEM WHICH IS SLATED TO BECOME OPERATIONAL IN A FEW MONTHS AS FOR HIS FORPROFIT PROPOSAL HE SAYS MY PLAN WOULDN'T TOUCH THE 886 MILLION IN RETAINED EARNINGS BUT WOULD BE GEARED TOWARD FUTURE PROFITS RUNNING ROUGHLY 30 MILLION A YEAR IN A NOTFORPROFIT INSTITUTION THERE'S NO INCENTIVE TO ECONOMIZE ON OPERATING COSTS HE ARGUES WE HAVE TO HAVE A FOCUSED CORPORATE APPROACH WITH IMPROVED ACCOUNTABILITY AS THE EXCHANGE MATURES AND LARGE INSTITUTIONS SUCH AS THE BIG OIL PRODUCERS AND REFINERS EXPAND THEIR USE OF THE MERC'S CRUDEOIL FUTURES CONTRACTS AS PRICEHEDGING MECHANISMS IRONICALLY IN THE MOST RECENT INSTANCE OF A NEW YORK MERC CHAIRMAN BEING ACCUSED OF IMPROPRIETIES THENVICE CHAIRMAN MR GUTTMAN CHAIRED THE BOARD MEETING THAT ULTIMATELY LED TO HIS PREDECESSOR'S RESIGNATION IN LATE 1988 THENCHAIRMAN WILLIAM M BRADT RESIGNED AT THE MERC'S URGING AFTER THE CFTC CRITICIZED HIS BUSINESS DEALINGS ON CONFLICTOFINTEREST GROUNDS MR BRADT DENIED ANY WRONGDOING THIS TIME TOO ONE DAY FOLLOWING THE CFTC'S CHARGES THE MERC BOARD REQUESTED THE CHAIRMAN SUBMIT HIS RESIGNATION BUT LOU GUTTMAN REFUSED CONTENDING THE MEMBERS SHOULD DECIDE 9303110021 930311 TAXABLE MONEY FUNDS RECEIVE LARGE INFLOW DESPITE LOWER YIELDS NEW YORK INSTITUTIONAL INVESTORS POURED BILLIONS OF DOLLARS INTO TAXABLE MONEY MARKET FUNDS IN THE LATEST WEEK ALTHOUGH YIELDS SLIPPED THE AVERAGE SEVENDAY COMPOUND YIELD ON ALL TAXABLE FUNDS EASED TO 271 FROM 274 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 564 TAXABLE FUNDS TRACKED BY THE NEWSLETTER ROSE 973 BILLION TO 48653 BILLION IN THE WEEK ENDED TUESDAY MOST OF THAT INFLOW 925 BILLION WENT INTO THE 144 FUNDS OPEN ONLY TO INSTITUTIONS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MUCH OF THAT CASH PROBABLY CAME OUT OF THE SHORTTERM AND INTERMEDIATETERM BOND MARKETS WHERE THERE WAS PROFITTAKING LAST WEEK MONEY FUNDS ARE A TEMPORARY PARKING PLACE HE SAID AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS FOR THE SIXTH CONSECUTIVE WEEK INDICATING THAT PORTFOLIO MANAGERS DON'T EXPECT YIELDS TO CHANGE MUCH IN COMING WEEKS THE AVERAGE SEVENDAY SIMPLE YIELD SLID TO 267 FROM 271 WHILE THE AVERAGE 30DAY SIMPLE YIELD EASED TO 270 FROM 272 THE AVERAGE 30DAY COMPOUND YIELD DECLINED TO 273 FROM 275 YIELDS ON TAXEXEMPT FUNDS ALSO FELL THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE DROPPED TO 175 FROM 184 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 243 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 254 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 309 TAXFREE FUNDS GREW 151 BILLION TO 10298 BILLION MONEY FUND REPORT SAID AVERAGE MATURITY SHORTENED BY ONE DAY TO 54 DAYS 9303110020 930311 INTERNATIONAL SWISS BANK REPORTS 1992 NET FELL 25 ON BIG LOAN LOSSES BASEL SWITZERLAND HEAVY LOSSES ON BAD LOANS PUSHED SWISS BANK CORP'S NET INCOME DOWN BY 25 IN 1992 BUT A SHIFT IN COMMERCIAL STRATEGY SHOULD HELP AVOID SUCH PROBLEMS IN THE FUTURE ACCORDING TO GEORGES BLUM WHO WILL SOON BECOME CHIEF EXECUTIVE OFFICER WE HAVE FUNDAMENTALLY CHANGED OUR APPROACH TO THE MARKET THE 57YEAROLD EXECUTIVE SAID IN AN INTERVIEW THE LOWMARGIN BULK LENDING THAT GOT SBC INTO SO MUCH TROUBLE OVER THE PAST FEW YEARS IS A THING OF THE PAST IN RECENT YEARS SBC ONCE SEEN AS A STAID INSTITUTION FOUND ITSELF WITH SOUR LOANS TO NUMEROUS HEADLINEGRABBING VENTURES INCLUDING WERNER REY'S OMNI GROUP ROBERT MAXWELL'S MEDIA EMPIRE OLYMPIA & YORK'S REAL ESTATE HOLDINGS AND GPA THE AIRCRAFT LEASING COMPANY IT GOT TO THE POINT WHERE IF A PROBLEM BECAME KNOWN YOU IMMEDIATELY ASKED IS SBC INVOLVED SAYS AN ECONOMIST AT ANOTHER SWISS BANK FIGURES FOR 1992 ANNOUNCED YESTERDAY UNDERLINE THE EXTENT OF THE DAMAGE LAST YEAR SBC SAID WRITEDOWNS FOR BAD AND DOUBTFUL LOANS AND DEPRECIATION OF ASSETS JUMPED BY 322 TO 192 BILLION SWISS FRANCS 125 BILLION FROM 145 BILLION FRANCS THE IMPACT OF THOSE WRITEDOWNS WAS PARTIALLY OFFSET BY EXTRAORDINARY GAINS ON THE SALE OF A HOLDING IN AN ELECTRICITY COMPANY BUT NET INCOME FELL TO 101 BILLION FRANCS FROM 103 BILLION FRANCS PUSHING THE BANK'S AVERAGE RETURN ON EQUITY DOWN TO 794 FROM 843 IN 1991 STILL SBC SAID IT WOULD PAY AN UNCHANGED DIVIDEND OF 14 FRANCS A SHARE 9303110019 930311 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 ARIZONA PUBLIC SERVICE CO 402 MILLION THREEPART ISSUE OF SECURED LEASE OBLIGATION BONDS WAS PRICED THROUGH DEALERS LED BY FIRST BOSTON CORP THE FIRST PART CONSISTING OF 101 MILLION OF BONDS WITH A FINAL MATURITY OF JUNE 30 2001 WAS PRICED AT PAR TO YIELD 649 DUE TO EARLY PRINCIPAL PAYMENTS THE BONDS ARE EXPECTED TO HAVE AN AVERAGE LIFE TO MATURITY OF 53947 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 127 BASIS POINTS ABOVE COMPARABLE TREASURYS THE SECOND PART CONSISTING OF 53 MILLION OF BONDS WITH A FINAL MATURITY OF JUNE 30 2005 WAS PRICED AT PAR TO YIELD 739 DUE TO EARLY PRINCIPAL PAYMENTS THE BONDS ARE EXPECTED TO HAVE AN AVERAGE LIFE TO MATURITY OF 105 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 143 BASIS POINTS ABOVE COMPARABLE TREASURYS THE THIRD PART CONSISTING OF 248 MILLION OF BONDS WITH A FINAL MATURITY OF JUNE 30 2015 WAS PRICED AT PAR TO YIELD 8 DUE TO EARLY PRINCIPAL PAYMENTS THE BONDS ARE EXPECTED TO HAVE AN AVERAGE LIFE TO MATURITY OF 179 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE COMPARABLE TREASURYS ALL THREE PARTS ARE RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP PUBLIC SERVICE ELECTRIC & GAS CO 250 MILLION ISSUE OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY MERRILL LYNCH & CO THE 7 1/2 BONDS WILL BE REOFFERED AT 99 TO YIELD 7585 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P BELL TELEPHONE OF PENNSYLVANIA 150 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2003 WAS WON BY SALOMON BROTHERS INC THE 6 1/8 DEBENTURES WILL BE REOFFERED AT 9890 TO YIELD 6275 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P BELL TELEPHONE OF PENNSYLVANIA IS A UNIT OF BELL ATLANTIC CORP ALABAMA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2000 WAS WON BY JP MORGAN SECURITIES INC THE 6 BONDS WILL BE REOFFERED AT 99736 TO YIELD 6046 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P ALABAMA POWER IS A UNIT OF SOUTHERN CO PUBLIC SERVICE ELECTRIC & GAS 75 MILLION OF CUMULATIVE PREFERRED STOCK WITH A 15YEAR FINAL MATURITY WAS WON BY DEALERS LED BY MERRILL LYNCH & CO THE 750000 SHARES OF 100ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 597 THE SHARES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P PUBLIC SERVICE ELECTRIC & GAS CO IS A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1 612 MILLION SERIES 1993 ELECTRIC REVENUE REFUNDING BONDS FOR CATAWBA NUCLEAR STATION HAVE BEEN REPRICED BY A GOLDMAN SACHS & CO GROUP THE TOTAL AMOUNT OF THE ISSUE WAS RAISED TO APPROXIMATELY 612 MILLION FROM THE INITIAL 6015 MILLION GOLDMAN SACHS SAID PROCEEDS FROM THE BOND SALE WILL BE USED TO ADVANCE REFUND SOME OF THE POWER AGENCY'S SECURITIES OUTSTANDING INCLUDED IN THE OFFERING ARE APPROXIMATELY 488 MILLION FIXEDRATE BONDS 62 MILLION PERIODIC AUCTION RESET SECURITIES PARS AND 62 MILLION INVERSE FLOATING RATE SECURITIES INFLOS THE REPRICING HAD THE BIGGEST IMPACT ON THE FIXEDRATE BONDS YIELDS FOR FIXEDRATE BONDS DUE IN 1996 1997 1999 2001 AND 2003 WERE RAISED 50 BASIS POINTS TO ATTRACT BUYERS ALSO A NEW 2010 MATURITY WAS ADDED THOSE BONDS ARE 550 SECURITIES PRICED TO YIELD 565 TERM BONDS DUE IN 2014 AND 2017 HAVE BEEN ELIMINATED AND REPLACED BY SECURITIES DUE IN 2015 AND 2018 THE 2015 BONDS ARE 5 SECURITIES PRICED TO YIELD 580 THE 2018 BONDS ARE 5 SECURITIES PRICED TO YIELD 568 YIELDS FOR THE FIXED RATE BONDS NOW RANGE FROM 260 IN 1994 TO 580 IN 2015 THE INITIAL YIELD SCALE WAS 260 IN 1994 TO 580 IN 2014 AS FOR THE DERIVATIVES THERE ARE 27 MILLION PARS AND 27 MILLION INFLOS WITH A FINAL MATURITY OF JAN 1 2012 THERE ARE ALSO 35 MILLION PARS AND 35 MILLION INFLOS WITH A FINAL MATURITY OF JAN 1 2020 THE YIELD FOR THE PARS WILL BE RESET AT PERIODIC AUCTIONS AFTER EACH AUCTION THE YIELD FOR THE INFLOS WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE PARS RATE THE 2012 INFLOS HAVE BEEN GIVEN A COUPON OF 550 AND A CURRENT BOND EQUIVALENT YIELD OF 812 THE 2020 INFLOS HAVE A 560 COUPON AND A CURRENT BOND EQUIVALENT YIELD OF 832 PRIOR TO THE REPRICING THE CURRENT BOND EQUIVALENT YIELDS FOR THE INFLOS WERE SLIGHTLY LOWER NEW YORK STATE 2084 MILLION VARIOUS GENERAL OBLIGATION BONDS WERE APPARENTLY WON BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE FROM 240 IN 1994 TO 550 IN 2017 TO 2023 MOODY'S HAS RATED THE BONDS SINGLEA S&P HAS ASSIGNED A SINGLEAMINUS RATING AND FITCH INVESTORS SERVICE INC HAVE ASSIGNED A SINGLEAPLUS RATING WASHINGTON SUBURBAN SANITARY DISTRICT MD 140 MILLION OF VARIOUS 1993 UNLIMITEDTAX REFUNDING BONDS WERE APPARENTLY WON BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 210 IN 1993 TO 538 IN 201113 MOODY'S HAS RATED THE ISSUE DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEA RATING FEDERAL FARM CREDIT BANKS 150 MILLION OF STEPUP MEDIUMTERM NOTES WITH A FINAL MATURITY OF MARCH 24 1998 WAS PRICED AT PAR TO YIELD 425 THE NOTES WERE PRICED AT A SPREAD OF 86 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL THE ISSUE'S COUPON STEPSUP OR INCREASES TO 595 ON MARCH 24 1999 THE NOTES ARE NONCALLABLE FOR ONE YEAR THE ISSUER CAN THEN CALL THE NOTES AFTER GIVING NOTEHOLDERS 30DAYS' NOTICE THE SECURITIES WILL BE SOLD THROUGH MERRILL LYNCH & CO NEW ENGLAND EDUCATION LOAN MARKETING CORP 103 MILLION SERIES 1993A STUDENT LOAN REFUNDING BONDS HAVE BEEN PRICED BY A CHEMICAL SECURITIES INC GROUP THE BONDS WHICH ARE DUE ON JULY 1 2005 ARE PRICED AT PAR TO YIELD 570 AT MATURITY ABBEY NATIONAL TREASURY SERVICES UK PARENT 650 MILLION OF 8 EUROBONDS DUE APRIL 2 2003 AT ISSUE AND REOFFER PRICE 9896 VIA SG WARBURG AND GOLDMAN SACHS BONDS YIELD 815 ANNUALLY A SPREAD OF 50 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT NOTE GUARANTOR ABBEY NATIONAL PLC FEES 035 LKB BADENWUERRTEMBERG FINANCE NV GERMANY 500 MILLION OF 5 3/8 EUROBONDS DUE MARCH 30 1998 AT ISSUE PRICE 101275 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9965 TO YIELD 546 A MARGIN OF 18 BASIS POINTS ABOVE TREASURY'S 5 1/8 BOND DUE FEBRUARY 1998 GUARANTOR LANDESKREDITBANK BADENWUERRTEMBERG ITSELF GUARANTEED BY GERMAN FEDERAL STATE OF BADENWUERRTEMBERG BANCO NACIONAL SA BRAZIL 100 MILLION OF 10 EUROBONDS DUE SEPT 24 1995 AT ISSUE AND REOFFER PRICE 99138 VIA CITICORP INVESTMENT BANK LTD BONDS YIELD 1040 SEMIANNUALLY A MARGIN OF ABOUT 623 BASIS POINTS ABOVE INTERPOLATED TREASURY YIELD CURVE EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 100 MILLION OF 6 3/8 EUROBONDS DUE MARCH 26 2008 AT ISSUE AND REOFFER PRICE 99606 VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS YIELD 643 ANNUALLY A SPREAD OF 40 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE JP MORGAN & CO US 300 MILLION OF COLLARED FLOATING RATE EURONOTES DUE APRIL 15 2005 AT ISSUE PRICE 10015 VIA KIDDER PEABODY INTERNATIONAL LTD NOTES PAY INTEREST AT SIXMONTH US DOLLAR LONDON INTERBANK OFFERED RATE LIBOR MINUS 15 BASIS POINTS SUBJECT TO MINIMUM 5 MAXIMUM 8 ZLAENDERBANK BANK AUSTRIA AG AUSTRIA 150 MILLION OF COLLARED FLOATING RATE EURONOTES DUE APRIL 7 2003 VIA KIDDER PEABODY INTERNATIONAL NOTES PAY INTEREST AT SIXMONTH US DOLLAR LONDON INTERBANK OFFERED RATE LIBOR MINUS 1/8 POINT MINIMUM COUPON 5 MAXIMUM 8 1/4 ISSUE PRICE PAR GUARANTOR CITY OF VIENNA ON SUBORDINATED BASIS CREDITANSTALT BANKVEREIN AUSTRIA 100 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE APRIL 8 2003 VIA CREDITANSTALT BANKVEREIN NOTES PAY INTEREST AT SIXMONTH US DOLLAR LIBOR MINUS 1/8 POINT MINIMUM COUPON 5 MAXIMUM 8 1/4 ISSUE PRICE PAR EAGLE 6 LTD CAYMAN ISLANDS SPECIAL PURPOSE VEHICLE 768 MILLION OF FIVEYEAR FLOATING RATE EURONOTES DUE MARCH 18 1998 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD NOTES PAY A COUPON FLOATING 80 BASIS POINTS ABOVE THE SIXMONTH US DOLLAR LIBOR ISSUE SECURED ON PORTFOLIO OF BONDS ISSUED BY US SEMIGOVERNMENT AGENCIESFEDERAL NATIONAL HOME MORTGAGE ASSOCIATION FANNIE MAE BANK OF TOKYO LTD JAPAN 50 BILLION YEN OF UNDATED EXCHANGEABLE SUBORDINATED BONDS VIA MORGAN STANLEY INTERNATIONAL BONDS ISSUED VIA BOT CAYMAN FINANCE LTD AND PAY A COUPON UNTIL MARCH 24 2003 INDICATED AT BETWEEN 4 1/4 AND 4 3/8 THEREAFTER COUPON PAID AT A RATE FLOATING 18 ABOVE THE SIXMONTH YEN LIBOR ISSUE PRICE PAR CALLABLE AT PAR AFTER FIVEYEARS EXCHANGEABLE FROM APRIL 30 1993 TO MARCH 24 2003 INTO BANK OF TOKYO LTD SHARES AT AN INDICATED PREMIUM OF BETWEEN 11 AND 14 FINAL TERMS SET ON OR BEFORE MARCH 18 1993 GUARANTEED ON SUBORDINATED BASIS BY BANK OF TOKYO LTD FEES NOT DISCLOSED TOYO INK MANUFACTURING CO LTD JAPAN 15 BILLION YEN OF 505 EUROBONDS DUE JUNE 22 2000 AT ISSUE PRICE 101425 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 9985 TO YIELD 507 ANNUALLY BANQUE NATIONAL DE PARIS FRANCE 150 MILLION CANADIAN OF 7 3/4 EUROBONDS DUE APRIL 8 2003 AT ISSUE PRICE 99215 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 9759 TO YIELD 811 ANNUALLY A SPREAD OF 50 BASIS POINTS ABOVE FRENCH GOVERNMENT NOTE DUE 2003 CAISSE CENTRALE DESJARDINS DU QUEBEC CANADA 100 MILLION CANADIAN OF 7 5/8 EUROBONDS DUE OCT 22 1998 AT ISSUE PRICE 10020 VIA HAMBROS BANK LTD REOFFERED AT 98625 TO YIELD 796 ANNUALLY A SPREAD OF 96 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE NACIONAL FINANCIERA SNC MEXICO 10 BILLION PESETAS OF 1360 'MATADOR' BONDS DUE APRIL 2 1998 AT ISSUE PRICE 101225 VIA BANCO HISPANO AMERICANO BONDS YIELD 13715 AFTER DEDUCTING FULL COMMISSIONS A MARGIN OF 225 BASIS POINTS ABOVE SPANISH GOVERNMENT BOND YIELDS GUARANTOR UNITED STATES OF MEXICO 9303110018 930311 MARKETING BRIEF EW SCRIPPS CO DEPARTURE FROM RADIO IS SET WITH PLANNED STATION SALE EW SCRIPPS CO CINCINNATI SAID IT PLANS TO LEAVE THE RADIO BUSINESS PUTTING UP FOR SALE ITS FOUR STATIONS WVRTFM BALTIMORE KUPLAM & FM PORTLAND ORE AND WMCAM AND WMCFM MEMPHIS TENN WHILE THE COMPANY HAS BEEN IN RADIO FOR MORE THAN HALF A CENTURY ITS STATIONS REPRESENT A SMALL SECTOR OF THE PUBLISHING AND TELEVISION COMPANY'S TOTAL BUSINESS THE FOUR STATIONS PRODUCED JUST 125 MILLION OR 1 OF SCRIPP'S TOTAL REVENUES LAST YEAR COMPARED WITH 20 FROM BROADCAST TELEVISION 20 FROM CABLE TELEVISION AND 59 FROM PUBLISHING SCRIPPS SAID THE RADIO GROUP WAS PROFITABLE ALTHOUGH IT DECLINED TO REVEAL ITS EARNINGS DONALDSON LUFKIN & JENRETTE IS HANDLING THE SALE 9303110017 930311 BUSINESS BRIEF GENERAL RE CORP UNIT TO INSURE BANK DEPOSITS EXCEEDING FDIC'S 100000 GENERAL RE CORP'S GENERAL REINSURANCE CORP STAMFORD CONN SAID IT WILL BEGIN OFFERING INSURANCE COVERAGE FOR BANK DEPOSITS IN EXCESS OF 100000 WHICH ISN'T COVERED BY THE FEDERAL DEPOSIT INSURANCE CORP THE MOVE MARKS ONE OF THE FIRST BROADBASED MARKETINGS OF A PRIVATE SUPPLEMENTARY BANKDEPOSIT INSURANCE AND WILL BE OFFERED THROUGH GENERAL RE'S GENERAL STAR INDEMNITY CO SUBSIDIARY WHILE FDIC INSURES DEPOSITS UP TO 100000 ANY EXCESS AMOUNT ISN'T INSURED AND IS VULNERABLE TO LOSS IF A BANK FAILS UNDER THE NEW FEDERAL DEPOSIT IMPROVEMENT ACT UNINSURED DEPOSITS CAN BE USED TO COVER THE COST OF BANK FAILURES THE COST OF THE COVERAGE WILL BE 25TO30 CENTS FOR EACH 100 INSURED AND WILL BE OFFERED TO INDIVIDUALS THROUGH LOCAL INSURANCE AGENTS THE SUPPLEMENTARY DEPOSIT INSURANCE WAS DEVELOPED BY VERIBANC INC A WAKEFIELD MASS BANKRESEARCH FIRM AND CENTREX UNDERWRITERS A MEMPHIS TENN INSURANCE AGENCY BECAUSE OF STATE REGULATIONS THE POLICY WON'T BE AVAILABLE IN SEVEN STATES INCLUDING NEW YORK CALIFORNIA AND FLORIDA 9303110016 930311 MARKETING & MEDIA PARAMOUNT COMMUNICATIONS EARNINGS PLUMMETED 95 IN FISCAL 1ST QUARTER BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REFLECTING WEAKNESS IN FEATURE FILMS AND SEASONAL LOSSES IN PUBLISHING PARAMOUNT COMMUNICATIONS INC POSTED A 95 PLUNGE IN EARNINGS FOR ITS FISCAL FIRST QUARTER ON A 14 DROP IN REVENUE PARAMOUNT SAID EARNINGS TOTALED 900000 OR ONE CENT A SHARE DOWN FROM 184 MILLION OR 16 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 9437 MILLION FROM 11 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS PARAMOUNT HAD ALSO INDICATED THAT IT EXPECTED SHARPLY LOWER EARNINGS ANALYSTS SAID YESTERDAY THEY EXPECT RESULTS TO REBOUND IN THIS YEAR'S SECOND HALF BECAUSE OF A STRONGER MOVIE LINEUP AND A SEASONAL UPTURN IN PUBLISHING MEANWHILE CONNECTICUT STATE TREASURER JOSEPH M SUGGS JR VOWED NOT TO SUPPORT REELECTION OF FOUR DIRECTORS WHO COMPRISE PARAMOUNT'S COMPENSATION COMMITTEE AT THE COMPANY'S ANNUAL MEETING TODAY MR SUGGS IS THE SOLE INVESTMENT OFFICER OF CONNECTICUT'S STATE PENSION FUNDS WHICH OWN ABOUT 200000 OF PARAMOUNT'S 118 MILLION SHARES OUTSTANDING HE IS PROTESTING A BIG BONUS PAID LAST YEAR TO PARAMOUNT'S CHAIRMAN AND CHIEF EXECUTIVE MARTIN S DAVIS THE CONNECTICUT ACTION FOLLOWS A SIMILAR PLEDGE LAST WEEK BY WISCONSIN'S PUBLIC PENSION FUNDS CITING PARAMOUNT'S LAGGARD STOCK PERFORMANCE WISCONSIN TRUSTEE OFFICIALS SAID THEY WOULD LEAD AN EFFORT TO UNSEAT THE FOUR MEMBERS OF THE COMPENSATION COMMITTEE BECAUSE THEY AWARDED MR DAVIS A SALARY AND BONUS OF 36 MILLION UP FROM 1991'S 28 MILLION THE WISCONSIN FUNDS OWN ABOUT 100000 SHARES PARAMOUNT SHARES CLOSED AT 5025 YESTERDAY UP 50 CENTS IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S STOCK HAS BEEN CLIMBING IN RECENT WEEKS ON EXPECTATION OF A SECONDHALF REBOUND THE RISE HAS ALSO BEEN FUELED BY SPECULATION THAT PARAMOUNT IS DISCUSSING A MERGER OR AN ACQUISITION OF ANOTHER ENTERTAINMENT COMPANY AMONG COMPANIES PARAMOUNT IS SAID TO HAVE TALKED TO ARE VIACOM INC TURNER BROADCASTING SYSTEM INC AND CAPITAL CITIES/ABC INC PARAMOUNT AND THE OTHER COMPANIES HAVE DECLINED TO COMMENT ON THE REPORTS PARAMOUNT IS ALSO SAID TO BE INTERESTED IN ACQUIRING A RECORD COMPANY COMMENTING ON THE CONNECTICUT TREASURER'S ACTION A PARAMOUNT SPOKESMAN SAID THE COMPENSATION COMMITTEE WITH SUPPORT OF THE BOARD BELIEVES THAT COMPENSATION SHOULD BE BASED ON PAY FOR PERFORMANCE NAMELY GROWTH IN OPERATING INCOME WHICH MORE THAN DOUBLED IN 1992 AND RETURN ON OPERATING ASSETS WHICH WAS ABOUT 16 LAST YEAR HE ADDED THAT PARAMOUNT EXPECTS ITS STOCK PRICE WILL ULTIMATELY REFLECT THAT PERFORMANCE IN THE FIRST QUARTER IN ADDITION TO WEAK FILM RELEASES SUCH AS LEAP OF FAITH ENTERTAINMENT RESULTS REFLECTED LOWER OPERATING PROFIT FROM PARAMOUNT'S TELEVISION STATIONS AND MOVIE THEATERS AND DECLINES AT MADISON SQUARE GARDEN MOREOVER THE REGIONAL THEME PARKS IT ACQUIRED LAST YEAR POSTED A MODEST LOSS PARAMOUNT SAID USA NETWORK A CABLE TELEVISION CHANNEL JOINTLY OWNED WITH MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA CORP POSTED LOWER OPERATING EARNINGS DUE TO STARTUP COSTS RELATED TO THE LAUNCH OF THE SCIFI CHANNEL IN PUBLISHING SEASONAL LOSSES WERE HIGHER THAN A YEAR EARLIER BECAUSE OF GREATER SELLING AND MARKETING COSTS PARAMOUNT SAID PARAMOUNT SAID EARNINGS MOMENTUM WOULD BUILD IN THE SECOND HALF LED BY A SLATE OF FILMS THAT INCLUDES SEQUELS TO THE HITS WAYNE'S WORLD AND THE ADDAMS FAMILY OTHER COMING FILMS INCLUDE THE FIRM STARRING TOM CRUISE AND BASED ON THE BESTSELLER BY JOHN GRISHAM AND SLIVER STARRING SHARON STONE 9303110015 930311 PACIFIC TELESIS GROUP PLANS TO OFFER STOCK IN WIRELESS OPERATIONS SAN FRANCISCO PACIFIC TELESIS GROUP SAID ITS PACTEL CORP UNIT PLANS TO MAKE AN INITIAL PUBLIC OFFERING OF STOCK IN ITS WIRELESS OPERATIONS PACIFIC TELESIS PREVIOUSLY SAID IT INTENDS TO SPIN OFF PACTEL'S WIRELESS OPERATIONS AS A SEPARATE COMPANY BY YEAR'S END THE AMOUNT TO BE RAISED IN THE OFFERING HAS YET TO BE DETERMINED PACIFIC TELESIS HAS SAID IT INTENDED TO INCREASE THE CAPITALIZATION OF PACTEL CORP'S WIRELESS OPERATIONS BY RAISING AT LEAST 750 MILLION THROUGH PUBLIC OR PRIVATE SOURCES OR BOTH THE OFFERING IS SUBJECT TO RECEIPT OF A TAX RULING FROM THE INTERNAL REVENUE SERVICE AND REGULATORY REVIEWS AS WELL AS APPROVAL BY COMPANY DIRECTORS THE REGIONAL BELL COMPANY EXPECTS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING IN THE NEXT SEVERAL MONTHS 9303110014 930311 LAW LEGAL BEAT HIRING OF A SINGLE ETHNIC GROUP ISN'T NECESSARILY BIASED COURT SAYS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYING A WORK FORCE MADE UP OF MEMBERS OF A SINGLE ETHNIC GROUP DOESN'T NECESSARILY VIOLATE EQUALEMPLOYMENT LAWS A FEDERAL APPEALS COURT RULED IN A CASE INVOLVING A KOREANIMMIGRANT BUSINESSMAN THE COURT IN CHICAGO SAID THE IMBALANCE IN HIRING RESULTED FROM THE EMPLOYER'S USE OF THE CHEAPEST MEANS OF RECRUITMENT WORD OF MOUTH AMONG OTHER IMMIGRANTS AND NOT NECESSARILY FROM DISCRIMINATION BUT CIVILRIGHTS ATTORNEYS WARNED THAT THE RULING WILL MAKE IT MORE DIFFICULT TO CHALLENGE OTHER COMPANIES ACCUSED OF DISCRIMINATING AGAINST MINORITIES IF YOU SUBSTITUTE WHITE FOR KOREAN IT LOOKS MORE OBVIOUSLY LIKE A CASE THAT NEEDS TO BE ADDRESSED SAID DONALD R LIVINGSTON GENERAL COUNSEL OF THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION HE SAID A DECISION HASN'T BEEN MADE ON WHETHER TO SEEK A REHEARING OF THE CASE BEFORE THE APPEALS COURT THE CASE WAS BROUGHT BY THE EEOC IN 1985 AGAINST CONSOLIDATED SERVICE SYSTEMS A CHICAGO JANITORIAL COMPANY THE EEOC CITING STATISTICS SHOWING THAT KOREANS MAKE UP LESS THAN 1 OF THE WORK FORCE IN THE CHICAGO AREA ALLEGED THAT THE COMPANY DISCRIMINATED IN FAVOR OF PEOPLE OF KOREAN ORIGIN BUT THE SEVENTH US CIRCUIT COURT OF APPEALS UPHELD A LOWERCOURT DECISION TO DISMISS THE CASE THE DECISION WAS WRITTEN BY APPELLATE JUDGE RICHARD POSNER KNOWN AS A SCHOLAR IN THE FIELD OF APPLYING ECONOMIC THEORY TO LEGAL QUESTIONS JUDGE POSNER WRITING FOR THE THREEJUDGE PANEL THAT DECIDED THE CASE SAID IT IS TO BE EXPECTED THAT A SMALL IMMIGRANTOWNED BUSINESS WILL RELY ON OTHERS FROM THAT IMMIGRANT COMMUNITY FOR ITS WORK FORCE NO INFERENCE OF INTENTIONAL DISCRIMINATION CAN BE DRAWN FROM SUCH HIRING JUDGE POSNER SAID IN HIS DECISION IT IS NOT DISCRIMINATION AND IT IS CERTAINLY NOT ACTIVE DISCRIMINATION FOR AN EMPLOYER TO SIT BACK AND WAIT FOR PEOPLE WILLING TO WORK FOR LOW WAGES TO APPLY TO HIM THE JUDGE WROTE THE FACT THAT THEY ARE ETHNICALLY OR RACIALLY UNIFORM DOES NOT IMPOSE UPON HIM A DUTY TO SPEND MONEY ADVERTISING IN THE HELPWANTED COLUMNS OF THE CHICAGO TRIBUNE TYPICALLY IN JOBDISCRIMINATION CASES A BUSINESS IS REQUIRED TO SHOW THAT IT HAD A LEGITIMATE REASON FOR ANY HIRING PRACTICES OR REQUIREMENTS THAT APPEAR TO HAVE A DISCRIMINATORY EFFECT UNDER THE APPEALS COURT'S RULING THE CONVENIENCE AND EFFICIENCY OF RECRUITING BY WORD OF MOUTH APPARENTLY WOULD PASS THAT TEST THE EEOC SAID AT TRIAL THAT CONSOLIDATED HAD REFUSED TO HIRE 99 PEOPLE BECAUSE THEY WEREN'T KOREAN OF THE 99 FOUR TESTIFIED AT TRIAL THE APPEALS COURT HOWEVER AGREED WITH THE TRIAL JUDGE THAT THE WITNESSES DIDN'T APPEAR TO HAVE BEEN CREDIBLE CALLING THEM A SORRY PARADE OF WITNESSES ROSLYN C LIEB EXECUTIVE DIRECTOR OF THE CHICAGO LAWYERS' COMMITTEE FOR CIVIL RIGHTS SAID SHE IS CONCERNED THAT THE RULING IF IT STANDS WILL SET A DANGEROUS PRECEDENT THAT WILL GIVE EMPLOYERS CARTE BLANCHE TO DISCRIMINATE AS LONG AS THEY COME UP WITH SOME ECONOMIC REASON FOR THE DISCRIMINATION MR LIVINGSTON SAID THE EEOC BELIEVED IT HAD PROVEN ITS CASE WITH THE STATISTICS OF KOREANS IN THE TOTAL WORK FORCE AND WITH THE TESTIMONY OF THE WITNESSES HE SAID THE HIRING ALMOST EXCLUSIVELY OF KOREANS ISN'T LIKELY TO HAPPEN BY CHANCE HE SAID THE REASONING OF THE APPELLATE DECISION MIGHT MAKE IT EASIER FOR A COMPANY WITH AN ALLWHITE WORK FORCE TO DEFEND ITS HIRING EEOC VS CONSOLIDATED SERVICE SYSTEMS SEVENTH US CIRCUIT COURT OF APPEALS 913530 A FORMER PENNSYLVANIA STATE JUDGE WHO HAD BEEN CONVICTED OF CRIMINALLY ABUSING HIS POWER FAILED TO APPEAR AT A COURT HEARING INVOLVING HIS CASE AND WAS DECLARED A FUGITIVE JOSEPH F O'KICKI FORMER PRESIDENT JUDGE OF CAMBRIA COUNTY AND AN EXPERT ON ASBESTOS LITIGATION HAD HIS BAIL REVOKED AND 10000 BOND FORFEITED AFTER MISSING THE HEARING ON MONDAY MR O'KICKI'S ATTORNEY TOLD THE COURT THAT HIS CLIENT WHO HAS A HISTORY OF HEART AILMENTS AND CANCER CALLED TO SAY HE WAS IN A HOSPITAL BUT REFUSED TO SAY WHERE MR O'KICKI'S ATTORNEY JAMES YELOVICH OF SOMERSET PA SAID YESTERDAY THAT HE HAD SPOKEN AGAIN TO HIS CLIENT WHO WAS STILL IN A HOSPITAL AND WHO FELT RESIGNED TO BEING DECLARED A FUGITIVE MR YELOVICH SAID HIS CLIENT IS LIKELY TO APPEAL THE BAIL REVOCATION TO THE STATE SUPREME COURT LAWRENCE N CLAUS CHIEF DEPUTY ATTORNEY GENERAL OF PENNSYLVANIA SAID HIS OFFICE HAS ASKED CITY STATE AND FEDERAL OFFICIALS TO HUNT FOR THE EXJUDGE ONE POSSIBILITY IS THAT MR O'KICKI IS IN SLOVENIA WHERE HIS WIFE AND TWO CHILDREN ARE LIVING MR CLAUS SAID HOWEVER PROSECUTORS SAY THEY HAVE NO PROOF THAT HE IS THERE AND MR YELOVICH SAYS HE DOUBTS IT MR O'KICKI'S WIFE IS STUDYING IN THE FORMER YUGOSLAV REPUBLIC MR O'KICKI THE SUBJECT OF A FRONTPAGE STORY IN THE WALL STREET JOURNAL ON NOV 1 1989 WAS CONVICTED LATER THAT YEAR OF CRIMES RELATING TO MISUSE OF HIS OFFICE A CALIFORNIA JURY AWARDED PUNITIVE DAMAGES OF 5 MILLION AGAINST THE SAN DIEGO LAW FIRM OF SAMUEL E SPITAL THE PUNITIVE DAMAGES WERE IN ADDITION TO 25 MILLION IN COMPENSATORY DAMAGES THAT THE JURY HAD AWARDED EARLIER IN THE MALPRACTICE CASE AGAINST MR SPITAL THE DAMAGES WERE WON BY JERRY MAY AN INJURED CONSTRUCTION WORKER WHO CLAIMED THAT MR SPITAL'S FIRM HAD MISHANDLED HIS INJURY CASE AND HAD ENGAGED IN FRAUD AND FALSE ADVERTISING AT THE HEART OF THE ADVERTISING ARGUMENT WERE CLAIMS THAT MR SPITAL'S ADS MISREPRESENTED HIS TRIAL EXPERIENCE AND HIS AREAS OF EXPERTISE SAID PATRICK FREGA AN ATTORNEY FOR MR MAY AT THE SAN DIEGO FIRM FREGA & TIFFANY MR SPITAL ADVERTISED WIDELY IN CALIFORNIA SPENDING BETWEEN 250000 AND 1 MILLION A YEAR ON TELEVISION AND YELLOW PAGES ADS MR SPITAL'S LAWYER SIDNEY STUTZ OF SAN DIEGO SAID THE PUNITIVEDAMAGE AWARD WAS CLEARLY EXCESSIVE AND THE PREVIOUS 25 MILLION AWARD WAS IMPROPERLY BASED ON GUESSWORK BY THE JURY HE SAID HE PLANS TO ASK THE JUDGE OVERSEEING THE TRIAL TO REJECT THE JURY'S DECISIONS OLD GLORY THE US PATENT AND TRADEMARK OFFICE'S APPEAL BOARD GRANTED OLD GLORY CONDOM CORP TRADEMARK REGISTRATION FOR ITS LOGO WHICH CONSISTS OF A RED WHITE AND BLUE PENNANT COMBINED WITH THE WORDS OLD GLORY IN OVERTURNING A TRADEMARK EXAMINER'S RULING THE APPEAL BOARD SAID THAT SUCH USES OF THE US FLAG HAVE BEEN SUFFICIENTLY COMMON THAT THERE CAN BE NO JUSTIFICATION FOR REFUSING REGISTRATION OF THE LOGO NOTED GIBSON DUNN & CRUTCHER SAID RAYMOND B LUDWISZEWSKI FORMERLY ACTING GENERAL COUNSEL OF THE ENVIRONMENTAL PROTECTION AGENCY WAS NAMED A PARTNER EFFECTIVE APRIL 1 IN THE 700LAWYER FIRM'S WASHINGTON OFFICE JUNDA WOO CONTRIBUTED TO THIS COLUMN 9303110013 930311 MARKETING & MEDIA OUTOFHOME VIEWERS OF TELEVISION ARE PUT AT 28 MILLION WEEKLY NEW YORK MORE THAN 28 MILLION ADULTS IN THE US EACH WEEK WATCH TELEVISION IN OUTOFHOME LOCATIONS THAT AREN'T MEASURED BY AC NIELSEN CO ACCORDING TO A NEW STUDY COMMISSIONED BY THE NETWORK TELEVISION ASSOCIATION A LOBBYING GROUP ABOUT 19 MILLION OF THOSE VIEWERS ARE WATCHING ABC CBS OR NBC THE COMPANIES THAT FUND THE NTA AND ADD AN AVERAGE OF 4 TO THE NETWORKS' AUDIENCE RATINGS AS REPORTED BY NIELSEN THAT IS SLIGHTLY HIGHER THAN PREVIOUS STUDIES HAVE SHOWN BUT THE ADDITIONAL AUDIENCE VARIES WIDELY BY SHOW NBC'S LATE NIGHT WITH DAVID LETTERMAN FOR EXAMPLE GETS 27 MORE WOMEN OF AGE 18 TO 34 THAN NIELSEN RATINGS STATE WHEN OUTOFHOME VIEWING IS COUNTED THE STUDY SAYS THE STUDY SHOWS THAT NEARLY 75 OF THE OUTOFHOME VIEWING TAKES PLACE AT WORK COLLEGES OR IN HOTELS AND MOTELS ONLY 11 TAKES PLACE IN RESTAURANTS AND BARS A LESSDESIRABLE AUDIENCE FOR ADVERTISERS BECAUSE VIEWERS ARE LESS LIKELY TO PAY CLOSE ATTENTION NEARLY 60 OF ALL OUTOFHOME VIEWING OF THE THREE BROADCAST NETWORKS MOREOVER IS DONE BY THE HARDTOREACH 18TO34YEAROLD DEMOGRAPHIC GROUP NETWORK EXECUTIVES SAID YESTERDAY THAT THEY HOPE THE STUDY WILL ADD VALIDITY TO PREVIOUS RESEARCH DOCUMENTING THE SIZE OF THE OUTOFHOME AUDIENCE FOR WHICH THE NETWORKS WANT TO BE ABLE TO CHARGE ADVERTISERS MORE THE NETWORKS HAVE ALSO BEEN LOBBYING FOR NIELSEN A UNIT OF DUN & BRADSTREET CORP TO CONDUCT SUCH OUTOFHOME RESEARCH ON A REGULAR BASIS BUT BETSY FRANK SENIOR VICE PRESIDENT AT ADVERTISING AGENCY SAATCHI & SAATCHI SAID THE VALUE OF THE OUTOFHOME AUDIENCE HAS YET TO BE PROVEN 9303110012 930311 LEISURE & ARTS FILM DEFT DEBUT ABOUT A MEXICAN MUSICIAN BY JULIE SALAMON IT USED TO BE THAT PEOPLE JUST WENT TO THE MOVIES AND ENJOYED THEM OR DIDN'T NOW APPARENTLY WE ARE TO THINK MORE OR LESS OF A PICTURE DEPENDING ON HOW MUCH IT COST TO MAKE OR HOW MUCH IT TOOK IN AT THE BOX OFFICE OVER THE WEEKEND THIS ATTITUDE ONCE CONFINED TO THE TRADE PRESS HAS SPREAD TO THE GENERAL MEDIA SO ROBERT RODRIGUEZ'S FIRST FILM EL MARIACHI IS PROBABLY BEST KNOWN AS THE PICTURE THAT COST 7000 COLUMBIA PICTURES WHICH IS DISTRIBUTING THE FILM IS WIDELY ADVERTISING THIS REMARKABLY LOW FIGURE PERHAPS TO CONVINCE POTENTIAL TICKET BUYERS THAT THIS IS SOMEHOW A BARGAIN THOUGH THEY PAY THE SAME 6 OR 7 NO MATTER HOW MUCH THE FILM COST TO MAKE OR PERHAPS THE IDEA IS TO PROMOTE GOOD WILL TOWARD MR RODRIGUEZ SO AUDIENCES WILL INDULGE HIS PICTURE'S PULPINESS WHILE ENJOYING ITS CHARM THAT'S OK BY ME THE FILMMAKER'S PERSONAL STORY IS AFTER ALL A GOOD ONE THE 24YEAROLD WHO RAISED MONEY BY BEING A RESEARCH SUBJECT AT A HOSPITAL THEN CONVINCED HIS ACTORS TO WORK WITHOUT PAY AND USED MANY OF HIS NINE SIBLINGS AS CREW ON THE OTHER HAND IT ISN'T NECESSARY TO KNOW ANY OF THIS TO APPRECIATE THE TALENT BEHIND EL MARIACHI A SHREWD COMBINATION OF ACTION AND WISTFULLY COMIC ROMANCE MR RODRIGUEZ HAS CLEARLY WATCHED AND ABSORBED THE TECHNIQUE OF MANY MANY ACTION PICTURES JUDGING FROM HIS SHREWDLY MANAGED CHASE SCENES AND SHOOTOUTS BUT HIS WHIMSICAL TOUCH COMES FROM SOMEWHERE ELSE THERE'S A POETIC LIFT TO SOME SCENES THAT GOES BEYOND FILMSCHOOL GLIBNESS EL MARIACHI A SPANISHLANGUAGE PICTURE FILMED IN A MEXICAN BORDER TOWN IS THE STORY OF A MARIACHI A WANDERING MEXICAN MUSICIAN WHO SIMPLY WANTS TO CONTINUE HIS FAMILY TRADITION BUT EVEN IN PLACES THAT STILL MIGHT REQUIRE HIS SERVICES HE FINDS THAT HIS ART FORM HAS BEEN OVERTAKEN BY TECHNOLOGY IN ONE VERY FUNNY SCENE A BAR OWNER REJECTS HIM SAYING THAT HE ALREADY HAS MUSIC A FULL ORCHESTRA THE MARIACHI IS CRUSHED WHEN HE SEES THE COMPETITION AN ELECTRONIC RECORDER THAT SOUNDS LIKE A FULL MARIACHI BAND THE MARIACHI THEN BLUNDERS INTO A BUNCH OF WARRING GANGSTERS ONE OF WHOM IS A HIT MAN WHO CARRIES HIS WEAPONS IN A GUITAR CASE AND SO IS CONFUSED WITH THE MARIACHI MR RODRIGUEZ FILMED THE MOVIE ON THE FLY FEEDING HIS ACTORS THEIR LINES JUST BEFORE HE FILMED THEM BECAUSE THE SCRIPT WAS WELL THOUGHT OUT HOWEVER THE PICTURE DOESN'T SEEM MAKESHIFT BUT REALLY VIBRANT I HOPE EARLY SUCCESS AND HIS MULTIPICTURE DEAL AT COLUMBIA PICTURES WON'T CONSIGN MR RODRIGUEZ TO WHAT HE COULD BECOME A DEFT DIRECTOR OF SCHWARZENEGGER MOVIES HE HAS THE POTENTIAL FOR MUCH MORE THE ACTOR JOHN TURTURRO HAS DEDICATED HIS FIRST FILM A PICTURE ABOUT THE SONS OF AN ITALIAN IMMIGRANT CARPENTER TO HIS LATE FATHER A FIRSTGENERATION ITALIAN IMMIGRANT CARPENTER THE MOVIE MAC HAS MANY OF THE VIRTUES AND FLAWS OF A PERSONAL DEBUT IT HAS THE EMOTIONALITY AND ECCENTRIC DETAIL OF TRUTH BUT ALSO SIGNIFICANT LAPSES IN CHARACTER DEVELOPMENT AND NARRATIVE MR TURTURRO WHO COAUTHORED THE SCREENPLAY WITH BRANDON COLE BEGINS THE STORY OF THE IMMIGRANT'S THREE SONS IN 1954 AT THE FATHER'S FUNERAL EACH SON APPROACHES THE FATHER'S CASKET AND REMEMBERS SOME FORMATIVE EXPERIENCE FROM CHILDHOOD MEANT TO REVEAL THE FATHER'S INFLUENCE ON EACH SON'S CHARACTER IT'S A STRONG SCENE JUXTAPOSING THE SONS' PRIVATE MYTHOLOGY ABOUT THEIR FATHER WITH THE FUNERAL CHATTER IT'S CLEAR THESE YOUNG MEN WILL NOT EASILY ESCAPE THE PATRIARCH THE CONFLICTS AMONG THE BROTHERS ARISE FROM WHAT THEY CHOOSE TO DO WITH THEIR FATHER'S LEGACY MAC MR TURTURRO WANTS TO CARRY ON TO BUILD GOOD BUILDINGS THE WAY HIS FATHER DID HIS BROTHERS ARE LURED BY THE COUNTERCULTURE JUST STARTING TO TAKE ROOT ONE WANTS TO BE AN ARTIST THE OTHER DOESN'T KNOW WHAT HE WANTS TO DO BUT HE DOESN'T WANT TO WORK ALL THAT HARD MR TURTURRO HAS CHOSEN MYTHIC IMAGERY TO TELL HIS STORY AND IT IS VERY SEDUCTIVE AT TIMES HE SUCCEEDS IN MAKING THE BUILDING OF A HOUSE SEEM AS MOMENTOUS AS FIGHTING A WAR AND AS PERILOUS BUT THE RELATIONSHIP BETWEEN THE BROTHERS AND THEIR WORLDLY DESIRES DEVELOPS IN FRAGMENTS THAT ARE SO SEPARATED THE MOVIE STARTS TO FEEL LIKE A PUZZLE THE CHARACTER OF MAC IS ESPECIALLY UNKNOWABLE HE IS PRESENTED AS A MAN WHOSE LIFE IS HIS WORK BUT IT TAKES MORE THAN A BEAUTIFUL IMAGE OF A MAN POUNDING A NAIL IN JUST RIGHT TO UNDERSTAND HOW HE FEELS WHEN HE POUNDS IT THOMAS CARTER A RESPECTED TELEVISION DIRECTOR CHOSE FOR HIS FEATUREFILM DEBUT TO TELL THE STORY OF DISAFFECTED YOUNG PEOPLE IN NAZI GERMANY WHO TAKE COMFORT IN AMERICAN SWING MUSIC SWING KIDS IS MUCH BETTER THAN ONE MIGHT EXPECT FROM A SCRIPT WRITTEN BY JONATHAN MARC FELDMAN THAT HAS ITS CHARACTERS EXPRESS DEFIANCE BY RAISING THEIR ARMS IN A NAZI SALUTE AND SHOUTING SWING HEIL MR CARTER'S INTELLIGENT STRAIGHTFORWARD STYLE AND THE GOOD PERFORMANCES OF THE YOUNG ACTORS PROHIBIT HOOTING AT THE STORY'S COMPLETELY AMERICAN APPROACH TO A GERMAN STORY AS I WATCHED THE MOVIE I KEPT THINKING HOW INTERESTING IT WOULD BE IF I WERE WATCHING GERMAN TEENAGERS WHO PROTECT THEMSELVES FROM THE CHAOS AROUND THEM WITH BENNY GOODMAN AND ARTIE SHAW BUT THE AMERICAN ACTORS PLAYING GERMAN KIDS ARE SO AMERICAN THAT THE FILM OFFERS NO REAL UNDERSTANDING OF THEIR ALIENATION FROM THEIR OWN GERMAN CULTURE SO THE SS MEN COME OFF AS GENERIC BAD GUYS THE HITLER YOUTH HITLER JUGEND ARE CALLED THE HJS WITHOUT INTENDING TO THE FILM TRIVIALIZES BOTH YOUTHFUL REBELLION AND HISTORY VIDEO TIP IT IS ENTIRELY POSSIBLE TO USE MUSIC TO DESCRIBE THE HORRORS OF NAZISM JUST LOOK AT THE 1972 FILM VERSION OF THE MUSICAL DRAMA CABARET NO MATTER HOW MANY TIMES I DO I AM ASTONISHED AT ITS VIRTUOSITY 9303110011 930311 BUSINESS BRIEF TAUBMAN CENTERS INC PARTNERSHIP AGREES TO BUY PRUDENTIAL'S STAKE IN MALL TAUBMAN CENTERS INC A BLOOMFIELD HILLS MICH REAL ESTATE INVESTMENT TRUST SAID TAUBMAN REALTY GROUP LP HAS AGREED TO BUY FOR 140 MILLION THE INTERESTS HELD BY PRUDENTIAL INSURANCE CO OF AMERICA IN THE MALL AT SHORT HILLS IN NEW JERSEY TAUBMAN REALTY GROUP WILL BORROW THE FUNDS FOR THE ACQUISITION TAUBMAN CENTER THE MANAGING GENERAL PARTNER ADDED THE TRANSACTION IS EXPECTED TO INCREASE TAUBMAN REALTY GROUP'S DISTRIBUTABLE CASH FLOW BY BETWEEN 15 AND 2 THE COMPANY SAID CURRENTLY TAUBMAN REALTY GROUP AND PRUDENTIAL INSURANCE EACH HAVE 50 INTEREST IN PRUTAUB ASSOCIATES THE JOINT VENTURE THAT DEVELOPED AND OWNS THE 11 MILLIONSQUAREFOOT SHOPPING CENTER THE AGREEMENT IS SUBJECT TO APPROVAL OF THE PARTNERSHIP COMMITTEE OF TAUBMAN REALTY 9303110010 930311 SALOMON SHARES SOLD BY 2 DIRECTORS OF FIRM NEW YORK TWO SALOMON INC DIRECTORS TAKING ADVANTAGE OF THE RECOVERY IN THE COMPANY'S STOCK PRICE SINCE THE 1991 TREASURYBOND SCANDAL SOLD NEARLY 240000 SHARES LAST MONTH JAMES MASSEY A SENIOR MANAGING DIRECTOR IN CHARGE OF OVERSEEING SOME OF SALOMON'S TROUBLED INVESTMENTS SOLD 213000 SHARES BETWEEN FEB 4 AND FEB 25 AT PRICES RANGING FROM 4025 TO 4075 EACH AT AN AVERAGE PRICE OF 4050 A SHARE THE SALES ARE VALUED AT MORE THAN 86 MILLION MR MASSEY STILL OWNS 164282 SALOMON SHARES THE OTHER SALOMON DIRECTOR FORMER PHIBRO ENERGY INC CHAIRMAN ERNST WEIL SOLD 26875 SHARES FEB 8 FOR 4113 EACH THE VALUE OF MR WEIL'S STOCK SALE IS 11 MILLION MR WEIL WHO RETIRED FROM THE SALOMON UNIT AT THE END OF 1991 LOWERED HIS COMPANY STOCKHOLDINGS TO 50000 SHARES THE SECURITIES FIRM'S STOCK PRICE HAS CLIMBED STEADILY SINCE SINKING AS LOW AS 2075 IN THE AFTERMATH OF THE COMPANY'S INVOLVEMENT IN THE 1991 TREASURYAUCTION SCANDAL THE SHARES CLOSED YESTERDAY AT 4075 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303110009 930311 LAW KING COMPLETES HIS BEATING TESTIMONY BACKS OFF ASSERTION OF RACIST TERM USE BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES RODNEY KING COMPLETING HIS CIVIL RIGHTS TRIAL TESTIMONY BACKED AWAY FROM HIS STATEMENT THAT POLICE OFFICERS DERIDED HIM WITH A RACIAL SLUR UNDER PERSISTENT QUESTIONING BY DEFENSE LAWYERS HE REPEATEDLY SAID HE WASN'T SURE IF HE HAD HEARD THE WORD NIGGER OR KILLER WHEN QUESTIONED BY PROSECUTORS A DAY EARLIER HE SAID HE'D HEARD WE'RE GOING TO KILL YOU NIGGER RUN THE PRIOR STATEMENT APPARENTLY HADN'T BEEN EXPECTED BY EITHER PROSECUTORS OR DEFENSE LAWYERS BECAUSE MR KING HADN'T USED THE RACIST TERM WHEN HE APPEARED BEFORE A FEDERAL GRAND JURY IN JULY IT WAS ALSO THE FIRST TIME THAT THE MAN WHOSE NAME HAS BECOME INDELIBLY ASSOCIATED WITH THE COUNTRY'S RACIAL TROUBLES HAD PUBLICLY DECLARED THAT THE EPITHET WAS USED OFFERING A PARTIAL EXPLANATION FOR THE INCONSISTENCY MR KING TESTIFIED THAT HE TOLD HIS MOTHER VISITING HIM IN THE HOSPITAL AFTER THE BEATING THAT HE'D HEARD THE DEROGATORY WORD SHE TOLD ME THERE WAS NO NEED TO BRING THE RACIAL SITUATION INTO THE MATTER HE SAID I THOUGHT I'D KEEP MY MOUTH HUSHED APART FROM ITS EMOTIONAL RESONANCE THE QUESTION OF WHETHER A RACIST TERM WAS ACTUALLY UTTERED IS OF LEGAL SIGNIFICANCE BECAUSE IT APPLIES TO THE POLICEMEN'S MOTIVE FOR STRIKING THE SUSPECT FOR A CONVICTION OF VIOLATING MR KING'S CIVIL RIGHTS THE GOVERNMENT MUST PROVE BEYOND A REASONABLE DOUBT THAT THE OFFICERS INTENDED TO USE TOO MUCH FORCE IN ARRESTING HIM AN IMPROPER MOTIVE SUCH AS RACISM MIGHT HELP PROSECUTORS DEMONSTRATE WRONGFUL INTENT PROSECUTORS IN THE OFFICERS' STATECOURT TRIAL LAST YEAR WHICH RESULTED IN ACQUITTALS ON MOST CHARGES DIDN'T CALL MR KING AS A WITNESS REPORTEDLY BECAUSE THEY FEARED HE WAS IRASCIBLE AND WOULD BE VULNERABLE TO QUESTIONS ABOUT HIS UNLAWFUL BEHAVIOR IN THE CURRENT TRIAL THOSE CONCERNS HAVEN'T BEEN BORNE OUT PARTLY BECAUSE FEDERAL PROSECUTORS DEFUSED THE BRUNT OF THE ATTACK WHEN MR KING FIRST TOOK THE STAND HE ADMITTED HE HAD BEEN DRINKING AND WAS TRYING TO ELUDE POLICE BECAUSE HE FEARED BEING IMPRISONED FOR A PAROLE VIOLATION DEFENSE LAWYERS WILL USE MR KING'S CONFLICTING ACCOUNTS TO TRY TO IMPEACH MR KING'S CREDIBILITY HE APPEARED TO BE CONFUSED ABOUT SEVERAL DETAILS OF THE NIGHT OF MARCH 3 1991 SUCH AS WHETHER HE FELT A BLOW BEFORE OFFICERS ATTEMPTED TO GRAB HIS ARMS A LOT HAPPENED THAT NIGHT AND SOMETIMES I FORGET THINGS THAT HAPPEN HE SAID UNDER QUESTIONING BY MICHAEL STONE A LAWYER FOR DEFENDANT LAURENCE POWELL MR KING ADMITTED HE LIED WHEN HE TOLD STATE INVESTIGATORS PREPARING THE STATE'S CASE AGAINST THE OFFICERS THAT HE HADN'T BEEN DRIVING DRUNK MR KING LIES WHEN HE HAS A STAKE IN THE OUTCOME EVEN IF IT MEANS OTHER PEOPLE WILL GO TO PRISON MR STONE SAID AT A NEWS CONFERENCE LATER MR STONE SAID THAT MR KING HAD A FINANCIAL MOTIVE TO MAKE HIS TESTIMONY MORE DAMAGING AND TELL FALSEHOODS BECAUSE HE HAS A CIVIL LAWSUIT PENDING AGAINST THE CITY OF LOS ANGELES THAT CASE HAS BEEN POSTPONED UNTIL THE CURRENT TRIAL IS COMPLETED SOME LEGAL EXPERTS SAID MR KING WAS HARMED BY THE INCONSISTENCIES AND UNTRUTHS ELICITED BY DEFENSE LAWYERS OTHERS QUESTIONED THE DEFENSE DECISION TO CONDUCT A NEARLY EIGHTHOUR CROSSEXAMINATION SAYING THE MORE TIME MR KING SPENT BEFORE THE JURY THE WARMER A BOND HE CREATED WITH THEM THERE WERE SOME ALMOST TENDER MOMENTS WHEN HE WAS ASKED TO RECITE ALOUD THE TRANSCRIPT OF A NEWS CONFERENCE MR KING A HIGH SCHOOL DROPOUT QUIETLY SAID I CAN'T READ IT LATER THE UNEMPLOYED CONSTRUCTION WORKER WAS ASKED HOW MUCH HE WOULD CONSIDER A LOT OF MONEY TO WIN IN HIS CIVIL LAWSUIT AGAINST LOS ANGELES MORE THAN WHAT I HAVE NOW SIR HE SAID 9303110008 930311 TRAVEL CODE SHARING LEAVES FLIERS UP IN THE AIR BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AS FAR AS DONNA NAUSSAU IS CONCERNED HER AIRPLANE TICKET LIED THE NEW YORK SALESWOMAN WAS SCHEDULED TO FLY FROM NEWARK NJ TO PITTSBURGH ON WHAT HER TICKET SAID WOULD BE CONTINENTAL AIRLINES BUT AT THE AIRPORT MRS NAUSSAU WAS HAULED ACROSS THE AIRFIELD ON A SHUTTLE BUS TO A SMALL TURBOPROP PLANE OPERATED BY THE COMMUTER CARRIER CONTINENTAL EXPRESS THEY TRIED TO MAKE US GET ON THAT PLANE BUT I REFUSED MRS NAUSSAU SAYS ADDING THAT THE SMALL AIRCRAFT TAKES LONGER AND IS LESS SMOOTH THAN A JET I SAID THIS IS NOT WHAT I PAID FOR AND I WANT MY BAGS OFF THAT PLANE SEVERAL HOURS LATER SHE WAS PUT ON A CONTINENTAL JET FOR PITTSBURGH MRS NAUSSAU'S ANGER UNDERSCORES THE PROBLEM WITH AN INCREASINGLY USED BUT CONTROVERSIAL TACTIC CODE SHARING A UNIQUE CODE REPRESENTS EACH AIRLINE ON PLANE TICKETS AND IN COMPUTERRESERVATION SYSTEMS BUT TWO AIRLINES WILL USE THE SAME CODE IF THEY AGREE TO JOINTLY SERVE A PARTICULAR ROUTE THE PRACTICE IS LEGAL AND HAS BEEN EMPLOYED FOR YEARS BETWEEN MAJOR AIRLINES AND THE COMMUTER CARRIERS THAT FEED THEM PASSENGERS CRITICS HOWEVER SAY THE TACTIC MISLEADS FLIERS ABOUT WHICH AIRLINE THEY ARE TAKING CODE SHARING IS NOW BECOMING A CRITICAL LINK THAT TIES DOMESTIC AIRLINES TO INTERNATIONAL PARTNERS AGREEMENTS HAVE RECENTLY BEEN REACHED BETWEEN AMERICAN AIRLINES AND SOUTH AFRICAN AIRWAYS AS WELL AS NORTHWEST AIRLINES AND KLM BUT THE MOST AMBITIOUS CODESHARING AGREEMENT EVER PROPOSED WOULD JOIN BRITISH AIRWAYS WITH USAIR LINKING USAIR'S DOMESTIC MARKETS WITH DIRECT SERVICE TO THE BRITISH CARRIER'S INTERNATIONAL DESTINATIONS A GOVERNMENT DECISION ON THE PACT COULD COME TODAY OR TOMORROW BRITISH AIR'S PROPOSAL HAS DRAWN FIRE FROM AMR CORP'S AMERICAN UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES ON THE GROUND THAT US CARRIERS LACK EQUAL ACCESS TO BRITISH MARKETS BUT THE BROADER QUESTION IS WHETHER CODE SHARING IN GENERAL PROVIDES SEAMLESS SERVICE AS THE AIRLINES MAINTAIN OR IS JUST PLAIN SEAMY CODE SHARING IS AN INCREMENTAL STEP TOWARD THE LONGTERM GLOBALIZATION OF THE INDUSTRY BUT IT GIVES AIRLINES AN OPPORTUNITY TO PROJECT SOMETHING MORE THAN THEY REALLY ARE SAYS THOMAS R WILKINSON OF CALDWELL ASSOCIATES A WASHINGTON DC TRAVELMANAGEMENT FIRM AIRLINES SAY CODE SHARING BY ALLOWING TWO CARRIERS TO ACT AS ONE SIMPLIFIES BAGGAGE TRANSFERS AND BOARDING PASSES AND COORDINATES CONNECTION TIMES IT CAN ALSO MEAN SERVICE BETWEEN TWO CITIES THAT WOULDN'T OTHERWISE HAPPEN FOR EXAMPLE A PROPOSED CODESHARING AGREEMENT BETWEEN DELTA AND SWISSAIR WOULD GIVE FLIERS IN ATLANTA AND CINCINNATI TWO OF DELTA'S HUBS DIRECT FLIGHTS TO ZURICH BUT TRAVEL AGENTS SAY THE PRACTICE IS AKIN TO BOOKING A ROOM AT A HYATT THEN SHOWING UP AT THE HOTEL AND DISCOVERING A HILTON A TRAVEL AGENT BOOKING A TRIP FROM LOS ANGELES TO AMSTERDAM WILL FIND A FLIGHT SAY ON NORTHWEST WITH AN INTERAIRLINE CONNECTION IN DETROIT WHAT THE COMPUTER DOESN'T IMMEDIATELY SAY AND THE TICKET NEVER SAYS IS THAT PASSENGERS TRANSFER TO A KLM PLANE IN DETROIT THANKS TO THE RECENT CODESHARING AGREEMENT BETWEEN THE DUTCH CARRIER AND THE WINGS HOLDINGS INC UNIT CODE SHARING IS DESIGNED TO DECEIVE THE PUBLIC SAYS THORNTON CLARK SENIOR VICE PRESIDENT AT THOMAS COOK TRAVEL CAMBRIDGE MASS IT SAYS YOU'RE TAKING ONE CARRIER WHEN IN FACT YOU'RE NOT CUSTOMERS COMPLAIN MOST AGENTS SAY WHEN THEY END UP ON A COMMUTER CARRIER INSTEAD OF A JET OR WHEN THEY TRANSFER TO AN UNFAMILIAR FOREIGN CARRIER THERE ARE CERTAIN AIRLINES CLIENTS DON'T WANT TO BE ON BUT MOST CLIENTS WHO TAKE A CODESHARING FLIGHT GO OFF AND DON'T HAVE A CLUE SAYS BETH PAZIENZA PRESIDENT OF UNIGLOBE FULL SERVICE TRAVEL INC WASHINGTON A SPOKESMAN FOR CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC SAYS AN AGENT HAS FOUR DIFFERENT OPPORTUNITIES TO IDENTIFY A CODESHARING FLIGHT IN THE TICKETING PROCESS REGARDING MRS NAUSSAU THE NEW YORK FLIER THE CONTINENTAL SPOKESMAN SAYS EITHER THE AGENT IGNORED THE MULTITUDE OF DELIMITERS PROVIDED IN THE COMPUTERRESERVATION SYSTEM OR FAILED TO CONVEY THEM TO THE CUSTOMER OR THE CUSTOMER IGNORED THEM OR DIDN'T SEE THEM AGENTS SAY THESE DELIMITERS ARE EASY TO MISS AND TRACKING CODESHARING DATA IN THE COMPUTER IS TIMECONSUMING THE DEPARTMENT OF TRANSPORTATION WHICH APPROVES ALL CODESHARING AGREEMENTS SAYS TRAVEL AGENTS AND AIRLINES ARE BOTH REQUIRED BY LAW TO TELL CUSTOMERS WHICH AIRLINE THEY ARE TAKING DESPITE THE ILL WILL GENERATED AMONG AGENTS AND PASSENGERS CODE SHARING IS A POWERFUL TOOL FOR AIRLINES IT ENABLES THEM TO RETAIN PASSENGERS FOR A TRIP THAT REQUIRES AT LEAST ONE CONNECTION MOREOVER THE TACTIC GIVES THE CODESHARING AIRLINES A HUGE MARKETING ADVANTAGE IN THE COMPUTERRESERVATION SYSTEM FOR EACH ROUTE FLIGHTS THAT CONNECT ON THE SAME AIRLINE RECEIVE A HIGHER DISPLAY IN THE COMPUTER THAN OTHER CONNECTIONS AND TRAVEL AGENTS SAY MOST TRIPS ARE BOOKED FROM THE FLIGHTS DISPLAYED ON THE FIRST SCREEN CODE SHARING'S MARKETING CLOUT EXPLAINS WHY AMERICAN UNITED AND DELTA ARE TRYING TO BLOCK BRITISH AIR'S AGREEMENT WITH USAIR GROUP INC'S USAIR WHICH WOULD SIPHON OFF LARGE NUMBERS OF TRANSATLANTIC PASSENGERS FROM THE DOMINANT US CARRIERS NO MATTER HOW SEAMLESS THE AIRLINES SAY CODE SHARING IS TWO AIRLINES ACTING AS ONE CAN EASILY LEAD TO PROBLEMS OVER SUCH THINGS AS FREQUENTFLIER ACCOUNTS AND AIRPORT CLUBS BILLY AND BOBBIE BOWEN WERE SUPPOSED TO FLY FROM SYDNEY AUSTRALIA TO AUCKLAND NEW ZEALAND ON AIR NEW ZEALAND BUT BECAUSE OF A CODESHARING AGREEMENT THE RETIRED COUPLE FROM GULF SHORES ALA ENDED UP FLYING QANTAS AIRWAYS AT THE GATE AREA MR BOWEN WALKED INTO A QANTAS WAITING ROOM FOR A SOFT DRINK BUT A ROOM ATTENDANT SAID REFRESHMENTS WERE JUST FOR QANTAS TICKET HOLDERS WE WERE VERY SURPRISED BECAUSE WE FELT WE WERE ALL FLYING ON THE SAME AIRPLANE MRS BOWEN SAYS MR BOWEN GOT A GLASS OF WATER INSTEAD 9303110007 930311 CHECK EXPRESS SAYS TREASURY DEPARTMENT MAY FINE CONCERN TAMPA FLA CHECK EXPRESS INC WHICH RUNS 57 RETAIL CHECKCASHING STORES SAID THE DEPARTMENT OF TREASURY IS CONSIDERING FINING THE COMPANY FOR VIOLATING LAWS AGAINST MONEY LAUNDERING THE COMPANY SAID IT MAY BE FINED FOR VIOLATING FEDERAL LAWS THAT REQUIRE REPORTING OF ANY CASH TRANSACTION INVOLVING 10000 OR MORE TO THE INTERNAL REVENUE SERVICE WITHIN 15 DAYS OF THE TRANSACTION THE FINES WOULD COVER ABOUT 60 TO 70 TRANSACTIONS AT 15 COMPANYOWNED STORES FROM 1987 UNTIL 1989 SAID LARRY F LANG CHECK EXPRESS CHIEF EXECUTIVE OFFICER PRESIDENT AND CHAIRMAN THE DEPARTMENT OF TREASURY COULD FINE THE COMPANY 25000 TO 100000 PER TRANSACTION A SPOKESMAN SAID MR LANG ASSERTED THAT NONE OF THE DISPUTED TRANSACTIONS EXCEEDED 25000 AND THEREFORE WOULDN'T BE SUBJECT TO A FINE HIGHER THAN THAT AMOUNT THE DEPARTMENT COULD HOWEVER ASSESS ONLY A 500 FINE FOR EACH TRANSACTION IF IT FOUND THE COMPANY TO BE NEGLIGENT THE TREASURY DEPARTMENT SPOKESMAN SAID HE WOULDN'T COMMENT ON THE SPECIFIC CASE MR LANG SAID IT WAS NOT CLEAR TO THE COMPANY WHETHER OR NOT CHECKCASHING FACILITIES WERE REQUIRED TO COMPLY WITH THE RULE UNTIL AN IRS AUDITOR VISITED THE COMPANY'S HEADQUARTERS IN 1989 FROM THEN ON THE COMPANY REPORTED ALL SUCH TRANSACTIONS HE SAID CHECK EXPRESS ALSO RETROACTIVELY REPORTED THE 60 TO 70 TRANSACTIONS IN DISPUTE HE SAID HIGH PENALTIES COULD SUBSTANTIALLY ADVERSELY AFFECT THE COMPANY A CHECK EXPRESS NEWS RELEASE SAID BUT MR LANG SAID DISCUSSIONS WITH THE GOVERNMENT OFFICIALS HAVE INDICATED THAT POTENTIALLY THERE COULD BE NO FINE AND IF THERE IS ONE IT WON'T BE THE MAXIMUM HE EXPECTS THE MATTER TO BE RESOLVED IN 30 DAYS 9303110006 930311 MARKETING & MEDIA TCI LENFEST AGREE TO FORM A COMPANY FOR DEAL IN FRANCE PARIS ELECTRICITE DE FRANCE SIGNED A JOINTVENTURE AGREEMENT WITH CABLE GIANT TELECOMMUNICATIONS INC AND LENFEST COMMUNICATIONS INC ANOTHER US CABLE COMPANY TO DEVELOP AND OPERATE CABLE SYSTEMS THROUGHOUT FRANCE THE US COMPANIES' INVESTMENT IN VIDEOPOLE IS SUBJECT TO APPROVAL OF THE FRENCH TREASURY DEPARTMENT WHICH IS EXPECTED SOON THE COMPANIES SAID IN A JOINT STATEMENT VIDEOPOLE CABLE FRANCHISES COVER MORE THAN 100000 HOMES OR POTENTIAL SUBSCRIBERS AND IT EXPECTS TO HAVE 700000 MORE HOMES UNDER FRANCHISE BY 199697 EDF SAID VIDEOPOLE'S ACTIVATED CABLE SYSTEMS CURRENTLY PASS MORE THAN 50000 HOMES AND HAVE A 30 PENETRATION RATE THAT MEANS ABOUT 15000 SUBSCRIBERS ACCORDING TO MARK D SENA OF COMMUNICATIONS EQUITY ASSOCIATES A TAMPA FLA CABLESYSTEMS BROKER THAT ARRANGED THE TRANSACTION VIDEOPOLE'S MARKET FOCUS IN FRANCE IS SMALL TO MEDIUMSIZE COMMUNITIES WITH POPULATIONS OF 2000 TO 50000 IT IS SEEKING THE FRANCHISE RIGHTS FOR ABOUT ONE THIRD OF THE 23 MILLION HOMES IN THIS MARKET SEGMENT EDF SAID CURRENTLY TELECOMMUNICATIONS IS THE LARGEST CABLE OPERATOR IN THE US AND IN BRITAIN THROUGH ITS JOINT VENTURE WITH U S WEST INC THE FRENCH TRANSACTION IS PART OF A TREND AMONG US CABLE COMPANIES TO LOOK FOR NEW BUSINESS IN EUROPE REGULATORY CONSTRAINTS AND A MATURING INDUSTRY LIMIT THEIR PROFITABILITY AT HOME THEY SAY LENFEST IS 50OWNED BY LIBERTY MEDIA CORP CHEYENNE WYO A SPINOFF OF TELECOMMUNICATIONS INC GERRY LENFEST PRESIDENT OF LENFEST WILL REPRESENT THAT COMPANY AND TCI ON VIDEOPOLE'S BOARD EDF IS ONE OF THE WORLD'S LARGEST ELECTRICITY COMPANIES ITS 1992 REVENUE TOPPED 31 BILLION 9303110005 930311 AIR FORCE AIDE BACKS MCDONNELL'S C17 BUT GAO DISAGREES WASHINGTON THE AIR FORCE'S TOP ACQUISITION OFFICER DEFENDED MCDONNELL DOUGLAS CORP'S C17 MILITARY TRANSPORT JET TELLING A CONGRESSIONAL COMMITTEE THAT THE TROUBLED PROGRAM TO PRODUCE THE AIRCRAFT IS IMPROVING WHILE THE PROGRAM HAS HAD ITS UPS AND DOWNS WE BELIEVE THAT FIXES ARE IN PLACE TO KEEP THE PROGRAM ON TRACK LT GEN JOHN JAQUISH TOLD THE GENERALLY SKEPTICAL MEMBERS OF TWO SUBCOMMITTEES OF THE HOUSE ARMED SERVICES COMMITTEE AN OFFICIAL FROM THE GENERAL ACCOUNTING OFFICE DISPUTED THE AIR FORCE'S ROSY ASSESSMENT AFTER AN INVESTMENT OF 10 YEARS AND 133 BILLION THE GAO'S FRANK CONAHAN TESTIFIED THE C17 IS STILL AN IMMATURE AIRCRAFT COMMITTEE CHAIRMAN RONALD DELLUMS D CALIF SAID ANOTHER HEARING WILL BE HELD TO DISCUSS THE C17'S FUTURE THERE IS GENERAL AGREEMENT IN CONGRESS THAT THE MILITARY NEEDS THE AIRLIFT THE PLANE COULD PROVIDE BUT INCREASING ANGER AT THE WAY THE AIR FORCE AND MCDONNELL DOUGLAS HAVE HANDLED THE PROGRAM MY LEVEL OF COMFORT WITH THE AIR FORCE ISN'T VERY HIGH RIGHT NOW SAID REP NORMAN SISISKY D VA THE ARMED SERVICES INVESTIGATIONS SUBCOMMITTEE CHAIRMAN WHO AT ONE POINT SLAMMED HIS OPEN HAND ON THE TABLE THE HOUSE GOVERNMENT OPERATIONS COMMITTEE WHICH IS TO HOLD ITS OWN HEARINGS ON THE C17 NEXT WEEK MAY SUGGEST THAT CONGRESS CONSIDER HAVING LOCKHEED CORP OR BOEING CO TAKE OVER THE CONTRACT LEASING MCDONNELL DOUGLAS'S FACILITIES AND USING ITS WORKERS TO COMPLETE THE AIRCRAFT UNDER NEW MANAGEMENT 9303110004 930311 BUSINESS BRIEF PHP HEALTHCARE CORP OUTPATIENT SERVICE DEMAND FALLS HURTING FIRM'S RESULTS PHP HEALTHCARE CORP SAID AN 11 DECREASE IN DEMAND FOR OUTPATIENT SERVICES IN ITS PRIMUS/NAVCARE CENTERS RESULTED IN ABOUT A 50 DECREASE IN EARNINGS FOR ITS FISCAL THIRD QUARTER FROM ITS SECOND QUARTER FOR THE SECOND QUARTER ENDED OCT 31 1992 THE ALEXANDRIA VA COMPANY POSTED EARNINGS OF 13 MILLION OR 27 CENTS A SHARE PHP LINKED THE DECLINE IN DEMAND TO THE VARIABILITY OF DISEASE INCIDENCE SUCH AS FLU AND RELATED ILLNESSES IT SAID IT WILL REPORT THIRDQUARTER RESULTS BY MARCH 17 9303110003 930311 CREDIT MARKETS BOND MARKET CONTINUES TO DISPLAY UNCERTAINTY AS LAST WEEK'S JOBS DATA CAST A LONG SHADOW BY THOMAS T VOGEL JR AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AFTER WEEKS OF BOLD PRICE INCREASES THE BOND MARKET HAS RECENTLY DEVELOPED A BAD CASE OF THE JITTERS FOR THE PAST FOUR TRADING SESSIONS THE MARKET HAS TAKEN SOME WILD SWINGS AS INVESTORS TRY TO DETERMINE JUST HOW STRONG THE ECONOMY IS BECAUSE OF UNEXPECTED STRENGTH IN THE FEBRUARY EMPLOYMENT REPORT RELEASED FRIDAY ALL ASSUMPTIONS ABOUT SLOW ECONOMIC GROWTH AND SUBDUED INFLATION HAVE BEEN CALLED INTO QUESTION DESPITE THE NERVOUSNESS AND SEVERAL SESSIONS OF ROLLERCOASTER PRICE ACTIVITY THE TREASURY BOND MARKET HAS SHOWN A REMARKABLE DEGREE OF RESILIENCE THE BENCHMARK 30YEAR TREASURY BOND FOR EXAMPLE WAS YIELDING 674 UNCHANGED FROM TUESDAY AND SLIGHLY HIGHER THAN THE 673 YIELD THE DAY BEFORE THE EMPLOYMENT REPORT WAS RELEASED YESTERDAY ITS PRICE DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TREASURYS WITH SHORTER MATURITIES PARTICULARLY THOSE MATURING IN FIVE TO 10 YEARS HAVE BEEN HIT HARDER OVER THE PERIOD AND YESTERDAY WAS NO EXCEPTION THE 10YEAR NOTE FOR EXAMPLE DROPPED 3/8 POINT TO 102 3/32 WHILE ITS YIELD ROSE TO 596 FROM 591 WERE IT NOT FOR THE SURPRISINGLY STRONG FEBRUARY EMPLOYMENT REPORT THE MARKET MAY VERY WELL HAVE CONTINUED RALLYING THIS WEEK AS YIELDS SET NEW LOWS REPORTS THIS WEEK ABOUT ENTHUSIASM IN CONGRESS FOR MORE FEDERAL GOVERNMENT SPENDING CUTS MIGHT HAVE HAD A GREATER POSITIVE EFFECT IF INVESTORS WEREN'T WORRYING SO MUCH ABOUT THE PERCEIVED THREAT OF INFLATION REDUCED GOVERNMENT SPENDING COULD LEAD TO LESS GOVERNMENT BORROWING AND SMALLER AUCTIONS OF TREASURY NOTES AND BONDS THUS INCREASING THE VALUE OF THOSE TREASURY SECURITIES BONDS ALREADY IN THE MARKET BOND INVESTORS WORRY ABOUT INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE FEBRUARY EMPLOYMENT REPORT IS A CHINK IN THE ARMOR FOR INVESTORS HOPING FOR LOWER YIELDS SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP NOW INVESTORS ARE REACTING TO THE LATEST HEADLINE OR RUMOR OUT OF WASHINGTON HE SAYS AND BEGINNING TO FOCUS ON THE FEBRUARY PRODUCER PRICE INDEX WHICH IS SCHEDULED TO BE RELEASED TOMORROW THE INDEX WHICH IS ONE MEASURE OF INFLATION COULD CAUSE THE MARKET TO COME UNGLUED IF IT IS HIGHER THAN EXPECTED SAID MR COSTAS TO BE SURE MOST ECONOMISTS ARE NOT TOO WORRIED ABOUT INFLATION REARING ITS HEAD AND SAY THAT FRIDAY'S EMPLOYMENT REPORT WAS DECEPTIVELY STRONG MANY OF THEM EXPECT THE 365000 GAIN IN NONFARM PAYROLLS TO BE REVISED TO SHOW A MUCH SMALLER GAIN ECONOMISTS ARE PREDICTING AN INCREASE OF 02 IN THE PRODUCER PRICE INDEX FOR THE MONTH UNCHANGED FROM THE PREVIOUS MONTH IF THE INCREASE IS LARGER THAN THAT THEY SAID THE BOND MARKETS COULD SUFFER THE NERVOUSNESS ABOUT THE LOWEST LONGTERM YIELDS IN MORE THAN 20 YEARS WASHED OVER THE MUNICIPAL MARKET YESTERDAY AS A WAVE OF SELLING PUSHED PRICES OF ACTIVELY TRADED ISSUES AS MUCH AS 1 1/2 POINTS LOWER MONEY MANAGERS SAY THAT THE TAXEXEMPT MARKET MAY HAVE RUN AHEAD OF ITSELF AS INVESTORS LOOKING FOR TAX SHELTERS AHEAD OF PROPOSED INCOMETAX INCREASES FLOODED MUNICIPAL BOND FUNDS WITH CASH WHILE THERE WAS NO ECONOMIC DATA TO CONTEND WITH YESTERDAY BONDMARKET PARTICIPANTS WERE BUFFETED BY NEWS OUT OF WASHINGTON THE MAIN SOURCE OF NEWS WAS A SENATE BANKING COMMITTEE HEARING WHERE ALL 12 OF THE FEDERAL RESERVE DISTRICT PRESIDENTS WERE CALLED TO TESTIFY ON ECONOMIC CONDITIONS IN THEIR REGIONS AT THE SAME TIME TREASURY SECRETARY LLOYD BENTSEN WAS IN FRONT OF A HOUSE COMMITTEE TESTIFYING ON PRESIDENT CLINTON'S ECONOMIC PLAN THE STORIES PROVIDED LITTLE FOR TRADERS TO SINK THEIR TEETH INTO BUT SHOOK THE MARKET UP FOR SHORT STRETCHES THROUGHOUT THE DAY ONE PIECE OF NEWS FROM WASHINGTON DID RESULT IN A BRIEF PERIOD OF WILD SWINGS THE MARKET SURGED IN RESPONSE TO A REPORT THAT SEN JIM SASSER D TENN RECOMMENDED THE DEFICITREDUCTION PLAN INCLUDE CUTTING THE AMOUNT OF LONG BONDS ISSUED IN HALF ELIMINATING THE SEVENYEAR NOTE AND TRIMMING THE AMOUNT OF FIVEYEAR NOTES AS TALK ABOUT THE REPORT SWIRLED TRADERS SCRAMBLED TO BUY BUT PARTICIPANTS QUICKLY BEGAN TO PLAY DOWN THE REPORT AND THE MARKET FELL BACK ESPECIALLY AFTER MR BENTSEN REPEATED HIS ASSERTION THAT NO DRAMATIC CHANGES WERE LIKELY IN THE BORROWING MIX LATER A SPOKESMAN FOR THE SENATE BUDGET COMMITTEE SAID MR SASSER'S REPORTED PLAN WAS ACTUALLY HYPOTHETICAL AND WAS NOT MEANT TO BE A RECOMMENDATION FOR THE TREASURY DEPARTMENT THE BOND MARKET WILL BE WATCHING TODAY'S SCHEDULED RELEASE OF WEEKLY JOBLESS CLAIMS REPORT MORE CLOSELY THAN USUAL SAID ANTHONY CHAN SENIOR ECONOMIST AT BARCLAY'S DE ZOETTE WEDD SECURITIES INC PEOPLE ARE EXPECTING THE FEBRUARY EMPLOYMENT REPORT TO BE REVISED DOWN WHEN THE MARCH EMPLOYMENT REPORT IS RELEASED HE SAID SO FOR THE NEXT COUPLE OF WEEKS THE EMPLOYMENT CLAIMS NUMBER WILL TAKE A SPECIAL PLACE IN THE HEARTS OF ANALYSTS BECAUSE IT WILL PROVIDE A CLUE TO WHERE THE MONTHLY EMPLOYMENT REPORT WILL BE THE COMMERCE DEPARTMENT IS SLATED TO RELEASE ITS REPORT ON FEBRUARY RETAIL SALES TODAY AS WELL THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS CALLS FOR A SLIGHT 01 DECLINE IN SALES A TORRENT OF SELLING HIT MUNICIPAL BONDS KNOCKING DOWN PRICES OF ACTIVELY TRADED ISSUES BY AS MUCH AS 1 1/2 POINTS INSTITUTIONS WERE SAID TO BE AGGRESSIVE SELLERS THE MUNICIPALS MARKET HAD BEEN RISING FOR WEEKS ON EXPECTATIONS THAT THE CLINTON ADMINISTRATION WOULD PROPOSE INCREASES IN FEDERAL TAXES THE BID SIDE IS VERY WEAK DUE TO PROFITTAKING AFTER QUITE A BIT OF RUN UP IN THE LAST FEW WEEKS SAID HANS HANF A TRADER AT PRUDENTIAL SECURITIES INC IT SEEMED THAT EVERY INSTITUTION HAD A LIST OF BONDS FOR SALE HE ADDED DESPITE FALLING PRICES AND RISING YIELDS A NUMBER OF ISSUERS STILL BROUGHT SECURITIES TO THE MARKET NORTH CAROLINA MUNICIPAL POWER AGENCY NO 1'S 612 MILLION SERIES 1993 ELECTRIC REVENUE REFUNDING BONDS FOR CATAWBA NUCLEAR STATION WERE PRICED BY A GOLDMAN SACHS & CO GROUP DUE TO WEAK DEMAND YIELDS FOR SOME BONDS WERE RAISED 005 PERCENTAGE POINT AT A REPRICING INCLUDED IN THE OFFERING ARE ABOUT 488 MILLION OF FIXEDRATE BONDS 62 MILLION OF PERIODIC AUCTION RESET SECURITIES AND 62 MILLION OF INVERSE FLOATING RATE SECURITIES FOLLOWING THE REPRICING YIELDS FOR THE FIXEDRATE BONDS RANGED FROM 260 IN 1994 TO 580 IN 2015 IN COMPETITIVE BIDDING NEW YORK STATE'S 2084 MILLION OF VARIOUS GENERAL OBLIGATION BONDS WERE WON BY A BEAR STEARNS & CO GROUP BEAR STEARNS WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 4838 AND YIELDS WERE SET AT 240 IN 1994 TO 550 IN 201723 MOODY'S INVESTORS SERVICE INC RATED THE BONDS SINGLEA WHILE STANDARD & POOR'S CORP ASSIGNED A SINGLEAMINUS RATING THE PRIMARY MARKET WAS AWASH IN NEW DEBT PAPER FROM UTILITY COMPANIES BUT FEW OF THE COMPETITIVE OFFERINGS FOUND BUYERS UNDERWRITERS AND INVESTORS SAID AMONG THE BROADER SECONDARY MARKET MOST HIGHGRADE BONDS MATURING IN 30 YEARS OR MORE WERE UNCHANGED WHILE SHORTERTERM ISSUES SLIPPED 1/4 POINT MANY JUNK BONDS GAINED 1/8 POINT UTILITY DEBT COMPRISED 126 BILLION OF YESTERDAY'S 2 BILLION OF NEW CORPORATE DEBT OFFERINGS BORROWERS INCLUDED PACIFIC GAS & ELECTRIC CO WHICH SOLD 300 MILLION OF 33YEAR BONDS PUBLIC SERVICE ELECTRIC & GAS CO SOLD 250 MILLION OF 30YEAR BONDS AS WELL AS A 75 MILLION ISSUE OF CUMULATIVE PREFERRED STOCK MEANWHILE ALABAMA POWER CO A SOUTHERN CO UNIT FLOATED 160 MILLION OF FIRST MORTGAGE BONDS IN A TWOPART OFFERING AND ARIZONA PUBLIC SERVICE CO OFFERED 402 MILLION OF SECURED LEASE OBLIGATION BONDS WHILE SOME INVESTORS SAY UTILITY PAPER IS BECOMING MORE ATTRACTIVE RELATIVE TO BONDS OF INDUSTRIAL COMPANIES OTHERS SAY THE SECTOR MUST DROP IN PRICE FURTHER BEFORE THEY'LL BUY UTILITIES HAVE FLOATED 156 BILLION OF NEW BONDS SO FAR THIS YEAR ACCORDING TO SECURITIES DATA CO THAT'S NEARLY 65 MORE THAN DURING THE SAME PERIOD LAST YEAR WHEN UTILITIES PRICED 95 BILLION WHILE MOST OF THE NEW UTILITY BONDS HAVE BEEN TARGETED TO REFINANCE OUTSTANDING HIGHERCOUPON DEBT THE RECENT SURGE IN SUPPLY HAS FORCED TRADERS TO OFFER UTILITY BONDS IN THE SECONDARY MARKET MORE CHEAPLY INVESTORS SAY UTILITY TRADERS SAY THE YIELD GAP BETWEEN YIELDS ON SEASONED UTILITY BONDS AND OUTSTANDING TREASURYS WIDENED 003 TO 004 PERCENTAGE POINT A SIGN OF WEAKENING PRICES RELATIVE TO TREASURYS MEANTIME TRADERS SAY AN ADDITIONAL 500 MILLION TO 15 BILLION OF NEW UTILITY PAPER IS WAITING IN THE WINGS DETROIT EDISON CO HOUSTON LIGHTING & POWER CO AND GEORGIA POWER CO ARE ALL CONSIDERED LIKELY TO ISSUE BONDS SOON MOST MORTGAGE SECURITIES PRICES DETERIORATED ON CUES FROM TREASURYS BUT HIGHERCOUPON ISSUES PERFORMED BETTER THAN LOWERCOUPON ISSUES IN A CORRECTION OF RECENT SHARP LOSSES THE 7 MORTGAGE SECURITIES LOST 10/32 TO 15/32 WHILE 8 ISSUES LOST 3/32 TO 1/4 MEANTIME THE WEEKLY DOW JONES/TELERATE TITLE SEARCH INDEX JUMPED YESTERDAY THE INDICATOR REFLECTS STEPPED UP HOUSING AND REFINANCING BUSINESS INSTIGATED BY THE LOWEST MORTGAGE RATES IN NEARLY TWO DECADES THE TITLESEARCH INDEX JUMPED TO 2554 FOR THE WEEK ENDED MARCH 5 FROM 2215 THE PRIOR WEEK MARKING THE 10TH STRAIGHT WEEKLY GAIN THE INDEX HASN'T BEEN THIS HIGH SINCE IT REACHED 2568 FOR THE WEEK ENDED JAN 31 1992 THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9303110002 930311 WORLD MARKETS TOKYO PRICES FINISH MIXED ON PROFITTAKING STOCKS EDGE UP IN LONDON WEAKEN IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES ENDED NARROWLY MIXED WEDNESDAY AS PROFITTAKING FOLLOWING THE MARKET'S RECENT SURGE MET STRONG BUYING BY ARBITRAGERS AND OTHER INDEX PLAYERS THE BENCHMARK INDEX EKED OUT A GAIN ITS FOURTH IN A ROW FOR THE FIRST TIME SINCE LAST NOVEMBER LONDON STOCKS EDGED HIGHER ON CORPORATIONS' POSTING STRONG EARNINGS AND INVESTORS' STAKING POSITIONS PRIOR TO NEXT WEEK'S GOVERNMENT BUDGET STATEMENT FRANKFURT EQUITIES ENDED WEAKER ON PROFITTAKING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 16183 POINTS TUESDAY EDGED UP 1033 TO 1785863 BRINGING ITS GAINS THIS WEEK TO 104093 POINTS OR 62 SPURRED BY MONDAY'S SURPRISE RALLY ON THURSDAY IN TOKYO THE NIKKEI INDEX ROSE 16083 POINTS TO CLOSE THE MORNING SESSION AT 1801946 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A STRONG 550 MILLION SHARES COMPARED WITH 854 MILLION SHARES A DAY EARLIER LOSERS LED GAINERS 577430 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADVANCED 1887 POINTS TUESDAY ROSE 211 TO 134188 ARBITRAGE AND OTHER INDEXLINKED BUYING IN THE EARLY MORNING PUSHED THE NIKKEI UP THROUGH 18000 BUT STRONG PROFITTAKING DRAGGED IT BACK DOWN WITHIN MINUTES THE INDEX MOVED BETWEEN 1782412 AND 1803672 WITH THE DAY'S LOW AND THE HIGH REACHED DURING MORNING TRADING THE CONSOLIDATION WASN'T UNEXPECTED FOLLOWING STOCKS' BIG JUMPS EARLIER THIS WEEK AND MARKET SENTIMENT WAS GENERALLY UPBEAT ESPECIALLY ABOUT ISSUES THAT COULD BENEFIT FROM JAPANESE GOVERNMENT SPENDING ON INFRASTRUCTURE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 68 POINTS TO 29567 ADVANCING STOCKS NARROWLY OUTPACED DECLINING STOCKS 5343 THE FT 30STOCK INDEX ADDED 55 POINTS TO 22995 VOLUME WAS 6865 MILLION SHARES COMPARED WITH 7831 MILLION SHARES A DAY EARLIER THE MAIN IMPETUS FOR STOCKS CAME FROM THE FUTURES MARKET AND WAS MAGNIFIED BY A GENERAL ABSENCE OF INVESTORS WILLING TO SELL THE RELUCTANCE STEMMED PARTLY FROM THE GOVERNMENT'S BUDGET PRESENTATION SCHEDULED FOR NEXT TUESDAY WHEN SOME INVESTORS HOPE FOR FURTHER BRITISH INTERESTRATE CUTS TOO SOME BULLISHNESS ALSO WAS ATTRIBUTED TO COMFORT ABOUT BRITISH ECONOMIC RECOVERY PROSPECTS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 345 POINTS TO 170968 WITH GAINERS AND LOSERS EVENLY SPLIT AT 15 PRICES OPENED LOWER RECOVERED ON STRENGTH IN THE GERMAN BOND MARKET THEN WERE HIT BY PROFITTAKING THOUGH TRADING WAS RELATIVELY SUBDUED THE MARKET WAS JARRED BY GROWING WORRIES ABOUT A SELLOFF RELATED TO THE POLITICAL SITUATION IN RUSSIA WHERE THE HARDLINE CONGRESS CONVENED A SPECIAL SESSION IN A POWER SHOWDOWN WITH PRESIDENT BORIS YELTSIN IN PARIS A LATE BURST OF FUTURESRELATED SELLING PUSHED DOWN BLUECHIP SHARE PRICES AMSTERDAM STOCKS CLIMBED TO NEW HIGHS ON A BUOYANT DOLLAR LONDON'S GAINS WALL STREET'S BRIGHT OPENING AND DUTCH INTERESTRATE CUTS THE LATTER CONTRIBUTED TO BIG GAINS FOR BANKS AND INSURERS BRUSSELS STOCKS ALSO ROSE SHARPLY AHEAD OF A CUT IN BELGIAN RATES MILAN SHARES RECOVERED HANDILY FROM TUESDAY'S SHARP LOSSES CAUSED BY THE ITALIAN CORRUPTION SCANDAL AS NO NEW POLITICAL SHOCK WAVES EMERGED YESTERDAY STOCKHOLM EQUITIES DECLINED BROADLY AS PROFITTAKING CONTINUED FOLLOWING STOCKS' RUN UP TO HIGHS FOR THE YEAR LAST MONDAY SYDNEY STOCK PRICES CLIMBED TO THEIR HIGHEST LEVELS IN EIGHT MONTHS BUOYED BY WALL STREET'S RECORD HIGHS AND CONFIDENCE THAT THE AUSTRALIAN ECONOMY WILL GET A BOOST AFTER SATURDAY'S NATIONAL ELECTION AMONG CORPORATE DEVELOPMENTS IN TOKYO NKK JUMPED 6 YEN OR 23 TO 271 YEN 230 THE STEELMAKER UNVEILED A THREEYEAR RESTRUCTURING PLAN THAT INCLUDES A CUT OF 3200 OR 15 OF ITS EMPLOYEES TO 19000 THROUGH ATTRITION AND REASSIGNMENTS AND 40 CUT IN CAPITAL SPENDING WHICH TOTALED 440 BILLION YEN 374 BILLION IN THE PRECEDING THREE YEARS IN LONDON BA T INDUSTRIES RALLIED 18 PENCE OR 19 TO 955 PENCE 1374 THE TOBACCO AND FINANCIAL SERVICES CONCERN'S 1992 PRETAX PROFIT INCREASED 68 TO 165 BILLION 237 BILLION FROM A YEAR EARLIER THE RESULTS FAR EXCEEDED ANALYSTS' EXPECTATIONS THE 11 INCREASE IN THE DIVIDEND TO 372 PENCE A SHARE ALSO WAS SLIGHTLY HIGHER THAN THE MARKET HAD ANTICIPATED CADBURY SCHWEPPES ADVANCED 14 OR 28 TO 508 ALSO TOPPING PREVIOUS FORECASTS THE CONFECTIONARY AND BEVERAGE CONCERN'S 1992 PRETAX PROFIT ROSE 57 TO 3327 MILLION CADBURY RAISED ITS DIVIDEND 56 TO 132 PENCE A SHARE MORE THAN EXPECTED WILLIS CORROON GROUP FELL 2 OR 1 TO 190 THE ANGLOAMERICAN INSURANCE BROKER'S 1992 PRETAX PROFIT ROSE 34 TO 425 MILLION COMPARED WITH THE YEAREARLIER 411 MILLION RESTATED FROM 961 MILLION BECAUSE OF NEW BRITISH ACCOUNTING RULES WILLIS CORROON CUT ITS FIRST INTERIM DIVIDEND FOR 1993 TO 165 PENCE A SHARE VICKERS SURGED 6 OR 51 TO 124 ON RELIEF THAT ITS LOSS WASN'T DEEPER THAN PREDICTED THE ENGINEERING AND AEROSPACE CONCERN'S 1992 PRETAX LOSS MORE THAN DOUBLED TO 259 MILLION FROM THE YEAREARLIER DEFICIT OF 124 MILLION VICKERS ALSO SAID IT WAS SEEKING TO RAISE FUNDS THROUGH A 605 MILLION RIGHTS ISSUE OFFERING ONE NEW SHARE FOR EVERY FOUR ORDINARY SHARES HELD AT 95 PENCE EACH IN FRANKFURT DAIMLERBENZ ROSE 1 MARK TO 62650 MARKS 37615 A GERMAN MAGAZINE SAID THE INDUSTRIAL COMPANY'S MERCEDESBENZ AUTO UNIT WOULD HAVE A 1993 OPERATING LOSS OF BETWEEN 2 BILLION AND 3 BILLION MARKS 12 BILLION AND 18 BILLION MERCEDES DECLINED TO COMMENT IN PARIS LAFARGE COPPEE CLIMBED 75 FRENCH FRANCS OR 21 TO 3575 FRANCS 6328 THE CEMENT AND CONSTRUCTION MATERIALS GROUP REPORTED 1992 CONSOLIDATED PROFIT OF 123 BILLION FRANCS 2177 MILLION UNCHANGED FROM A YEAR EARLIER DESPITE A DETERIORATION IN EUROPEAN MARKETS AND IN LINE WITH ANALYSTS' EXPECTATIONS IN AMSTERDAM HUNTER DOUGLAS GAINED 260 GUILDERS OR 65 TO 4250 GUILDERS 2271 AS IT POSTED RESULTS THAT WEREN'T NEARLY AS BAD AS EXPECTED THE WINDOWCOVERING MAKER'S 1992 EARNINGS PLUNGED 53 TO 334 MILLION GUILDERS 178 MILLION INCLUDING A SPECIAL CHARGE OF 13 MILLION GUILDERS HUNTER DOUGLAS DIDN'T HAVE ANY SPECIAL CHARGES IN 1991 IN STOCKHOLM PROCORDIA FELL 3 KRONOR OR 16 TO 190 KRONOR 2493 PULLED DOWN PARTLY BY THE MARKET'S SLIDE THE PHARMACEUTICAL AND FOOD COMPANY REPORTED THAT 1992 PRETAX PROFIT JUMPED 31 TO 487 BILLION KRONOR 6383 MILLION FROM THE YEAREARLIER'S 37 BILLION KRONOR WHICH WAS RESTATED TO ADJUST FOR CHANGES IN ACCOUNTING STANDARDS BUT THE RESULTS WERE AT THE LOW END OF MARKET EXPECTATIONS PROCORDIA ALSO PROPOSED A DIVIDEND INCREASE OF 13 TO 355 KRONOR A SHARE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9303110001 930311 BUSINESS BRIEF BANK OF IRELAND GROUP CONCERN WILL RESTRUCTURE ITS NEW YORK OPERATIONS THE BANK OF IRELAND GROUP SAID IT IS RESTRUCTURING ITS SMALL NEW YORK OPERATIONS TO INCREASE THE OFFICE'S CORPORATE BANKING AND TREASURY ACTIVITIES AND GRADUALLY WITHDRAW FROM RETAIL BANKING THE BANK ALSO SAID IT'S SEEKING A BUYER FOR ITS NEW YORK RETAIL BANKING BUSINESS AND THAT PETER HOOPER PRESIDENT AND GENERAL MANAGER OF THE NEW YORK OFFICE HAS INDICATED HE MAY MOUNT A BID FOR THE RETAIL OPERATIONS MR HOOPER 53 YEARS OLD RESIGNED EFFECTIVE IMMEDIATELY HIS SUCCESSOR HASN'T BEEN NAMED MR HOOPER SAID HE PLANS TO LAUNCH HIS BID WITHIN A FEW WEEKS IF HE CAN ASSEMBLE AN INVESTOR GROUP POSSIBLY FROM THE AREA'S IRISHAMERICAN COMMUNITY THE SINGLE NEW YORK BRANCH CATERS ALMOST EXCLUSIVELY TO THAT COMMUNITY AND IS A TINY PART OF THE DUBLINBASED BANK OF IRELAND WHICH HAD 24 BILLION IN ASSETS IN FISCAL 1992 HE ADDED THE BANK OF IRELAND SAID THAT IN THE MEANTIME THE NEW YORK BRANCH WILL OPERATE AS USUAL AND WILL CONTINUE AS AN FDICINSURED INSTITUTION 9303110172 930222 MODERN WITCH HUNT CHILD ABUSE CHARGES BY RICHARD A GARDNER JANET RENO BILL CLINTON'S NOMINEE FOR ATTORNEY GENERAL HAS MADE HER NAME LARGELY IN CASES INVOLVING THE DEFENSE OF CHILDREN SHE MAY WELL CONTINUE THIS FOCUS IF SHE IS CONFIRMED IN HER NEW JOB FOR ALL THOSE IN THE NEW ADMINISTRATION THOUGH A TASK AWAITS IT IS THE MODIFICATION OF THE CHILD ABUSE PREVENTION AND TREATMENT ACT THE 1974 ACT SOMETIMES KNOWN AS THE MONDALE ACT AFTER ONE OF ITS SPONSORS WAS IMPLEMENTED TO FIGHT A GENUINE PROBLEM UP TO THAT YEAR CHILD ABUSE WAS RARELY REPORTED AND FREQUENTLY COVERED UP IT WAS CONGRESS'S INTENT TO RECTIFY THIS DEPLORABLE SITUATION BY PROVIDING INCENTIVES FOR STATES TO SET UP PROGRAMS FOR CHILD ABUSE RESEARCH IDENTIFICATION PROSECUTION AND TREATMENT FEDERAL FUNDING WAS MADE AVAILABLE TO MATCH STATE SPENDING AND THIS SERVED AS AN INCENTIVE FOR STATES TO CREATE SUCH PROGRAMS THE LAW HOWEVER HAS HAD RESULTS THAT ITS AUTHORS DID NOT INTEND IN AMERICA TODAY CHILD SEXABUSE ACCUSATIONS ARE BURGEONING IN MANY CASES IT IS PROBABLE THAT THE CHARGES ARE VALID BUT WHEN THE CHARGES ARISE FROM VICIOUS CHILD CUSTODY DISPUTES WHERE THE VENGEANCE ELEMENT AND THE OPPORTUNITY FOR EXCLUSION OF A HATED SPOUSE IS OPERATIVE OR IN VENUES SUCH AS DAYCARE CENTERS WHERE THE POTENTIAL PEDOPHILE HAS LITTLE OPPORTUNITY FOR CONTACT WITH THE CHILD ALONE THE PREVALENCE OF CHILD ABUSE IS IN REALITY QUITE LOW NEVERTHELESS THE NUMBER OF CHARGES IN THESE AREAS ESCALATE THE PRIMARY REASON THE MONDALE ACT HAS STRENGTHENED THE CHILD ABUSE ESTABLISHMENT A NETWORK OF SOCIAL WORKERS PSYCHIATRISTS PSYCHOLOGISTS AND LAW ENFORCEMENT OFFICIALS THAT THROUGH ITS VERY EXISTENCE FREQUENTLY VALIDATES AN INDIVIDUAL'S CHARGES IN OTHER WORDS THIS ESTABLISHMENT UNINTENTIONALLY OR INTENTIONALLY ENCOURAGES CHARGES OF CHILD ABUSE WHETHER THEY ARE REASONABLE OR NOT SOME EXAMPLES FROM CASES IN WHICH I HAVE PERSONALLY EVALUATED THE ACCUSED AS WELL AS OTHER PARTIES ON MARCH 5 RAYMOND AND SHIRLEY SOUZA BOTH 61 OF LOWELL MASS WILL BE SENT TO PRISON POSSIBLY FOR THE REST OF THEIR LIVES THEY ARE ACCUSED OF HAVING PERFORMED A SERIES OF PERVERTED SEXUAL ACTS ON THREE OF THEIR GRANDCHILDREN THE ACCUSATIONS BEGAN WHEN ONE OF THE SOUZAS' DAUGHTERS HAD A DREAM IN WHICH SHE ENVISIONED HER PARENTS AND HER BROTHER SEXUALLY ABUSING HER WHEN SHE WAS A CHILD IN THE DREAM HER MOTHER HAD A PENIS SHE CONCLUDED THAT THE DREAM INDICATED THAT SHE HAD ACTUALLY BEEN SEXUALLY ABUSED AS A CHILD BY HER PARENTS AND THAT THE SOUZA GRANDCHILDREN HAD PROBABLY BEEN ABUSED AS WELL SHE SUGGESTED THAT HER SIBLINGS QUESTION THE GRANDCHILDREN THUS BEGAN THE WAVE OF HYSTERIA THAT ULTIMATELY RESULTED IN THE SOUZAS BEING FOUND GUILTY OF THESE ALLEGED CRIMES DOROTHY RABINOWITZ WRITES ABOUT THIS ON THE LEISURE & ARTS PAGE OF THIS PAPER TODAY SEE RELATED ARTICLE LEISURE & ARTS DECEPTION IN THE MOVIES ON THE NEWS WSJ FEB 22 1993 ON THE BASIS OF MY EXAMINATIONS OF THE SOUZAS I WAS CONVINCED THAT THERE WASN'T A SCINTILLA OF EVIDENCE THAT THEY COMMITTED THESE CRIMES OR EVEN EXHIBITED PEDOPHILIC TENDENCIES FURTHERMORE I CAREFULLY REVIEWED MANY OF THE DOCUMENTS IN THIS CASE ESPECIALLY VIDEOTAPES OF THE INTERVIEWS WITH THE GRANDCHILDREN CONDUCTED BY THE PROSECUTOR'S OVERZEALOUS EXAMINERS I FOUND THE INTERVIEWS TO BE COERCIVE WITH THE USE OF MANY LEADING QUESTIONS AND THE SELECTIVE IGNORING OF COMMENTS BY THE CHILDREN THAT WOULD HAVE LED ANY UNBIASED EXAMINER TO QUESTION WHETHER THESE ALLEGATIONS HAD ANY MERIT WHATSOEVER ANOTHER EXAMPLE KELLY MICHAELS A NEW JERSEY NURSERY SCHOOL TEACHER WAS SENTENCED TO 47 YEARS FOR ALLEGEDLY SEXUALLY ABUSING 20 CHILDREN UNDER HER CARE AFTER EXAMINING THE ALLEGED VICTIMS THE ACCUSING PARENTS AND MS MICHAELS I WAS CONVINCED THAT SHE DID NOT ENGAGE IN THE VARIETY OF ABOMINABLE ACTS ATTRIBUTED TO HER YET THE PARENTS' HYSTERIA WAS FUELED BY OVERZEALOUS VALIDATORS AND LAW ENFORCEMENT OFFICIALS LEADING TO MS MICHAELS'S CONVICTION PART OF THE PROBLEM IS THAT SINCE 1974 THE MONDALE ACT HAS BEEN EXPANDED SEVERAL TIMES PROGRESSIVELY INCREASING THE FEDERAL FUNDS ALLOCATED TO THE STATES CERTAIN PROVISIONS OF THE ORIGINAL LAW AND ITS SUCCESSORS WORKED TO ENCOURAGE PEOPLE TO BRING CHILD ABUSE CHARGES THAT WERE FRIVOLOUS AND SOMETIMES MALICIOUS FABRICATIONS TO QUALIFY FOR FEDERAL MONEY STATES HAD TO PASS LEGISLATION THAT PROVIDED IMMUNITY FROM PROSECUTION FOR ALL THOSE REPORTING CHILD ABUSE WITH THE ADVANTAGE OF THE SCREEN OF IMMUNITY MANY PEOPLE IN LEGITIMATE CASES GAINED THE CONFIDENCE TO COME FORWARD HOWEVER THE SAME IMMUNITY PROTECTED PEOPLE MAKING FRIVOLOUS AND EVEN FABRICATED ACCUSATIONS TO GET FEDERAL FUNDS STATES WERE ALSO REQUIRED TO PASS LAWS REQUIRING SPECIFIC PEOPLE SUCH AS HEALTHCARE PROFESSIONALS LAWENFORCEMENT OFFICIALS TEACHERS AND SCHOOL ADMINISTRATORS TO REPORT SUSPECTED CHILD ABUSE TO THE APPROPRIATE CHILD PROTECTION AGENCY SUCH MANDATED REPORTING OF NECESSITY HAD TO BE BACKED UP BY PENALTIES USUALLY FINES AND/OR PRISON SENTENCES FOR FAILURE TO REPORT IN EFFECT THIS PROVISION HAS MADE IT A CRIMINAL OFFENSE FOR SUCH PEOPLE NOT TO REPORT SUSPECTED ABUSE AS A RESULT THESE PROFESSIONALS ARE PUT ON THE DEFENSIVE IF THEY DON'T REPORT THEY MIGHT BE DEEMED CRIMINALS THE RESULT HAS BEEN OVERREPORTING OF EVEN THE MOST ABSURD AND IMPOSSIBLE ACCUSATIONS DURING THE FEW YEARS FOLLOWING THE MONDALE ACT'S PASSAGE ALL 50 STATES AND THE DISTRICT OF COLUMBIA PASSED LEGISLATION PROVIDING FOR THE ESTABLISHMENT AND FUNDING OF THE APPROPRIATE PROGRAMS THE BASIC PROBLEM IS THAT THE SYSTEM IS BIASED STATE AND FEDERAL MONEY IS AVAILABLE FOR THE TREATMENT OF CHILDREN WHO ARE FOUND TO HAVE BEEN ABUSED BUT NO FUNDS HAVE BEEN SPECIFICALLY ALLOCATED FOR THE PROTECTION AND TREATMENT OF THOSE WHO HAVE BEEN FALSELY ACCUSED NOR HAS MONEY BEEN AVAILABLE FOR ANOTHER SPECIAL AND GROWING GROUP CHILDREN WHO HAVE SUFFERED PSYCHIATRIC DISTURBANCES BECAUSE THEY HAVE BEEN USED AS VEHICLES FOR THE PROMULGATION OF A FALSE ACCUSATION EVALUATORS WHO CONCLUDE THERE HAS BEEN ABUSE SET IN MOTION EVENTS THAT BRING THEIR OFFICES BOTH STATE AND FEDERAL FUNDS IF THEY CONCLUDE THERE WAS NO ABUSE THEIR FACILITIES RECEIVE NO FUNDING FOR FURTHER EVALUATION OF TREATMENT THE CHILD ABUSE ESTABLISHMENT ALSO FURTHERS ITSELF MENTAL HEALTH FACILITIES CHILD PROTECTION SERVICES AND INVESTIGATORY AGENCIES INCLUDING POLICE DETECTIVES AND PROSECUTORS ALL DEPEND ON EACH OTHER IT BEHOOVES THEM TO WORK TOGETHER BECAUSE THE GREATER THE NUMBER OF REFERRALS THE GREATER THE JUSTIFICATION FOR THE REQUISITE FUNDING THE CURRENT SYSTEM GENERATES AN ENDLESS STREAM OF REFERRALS FOR INVESTIGATORS AND VALIDATORS ALL THIS PREDICTABLY FUELS SEXABUSE HYSTERIA HYSTERIA IN WHICH AN ACCUSED INDIVIDUAL'S CONSTITUTIONAL DUEPROCESS PROTECTIONS ARE COMMONLY IGNORED HERE ARE SOME CHANGES AT THE FEDERAL LEVEL THAT COULD HELP DROP THE FEDERAL IMMUNITY CLAUSE IMMUNITY FROM PROSECUTION IS GENERALLY AVAILABLE ONLY TO SPECIFIC GROUPS ESSENTIAL TO THE FUNCTIONING OF THE LEGAL SYSTEM EG JUDGES AND PROSECUTORS IT IS INCOMPATIBLE WITH THE BASIC PHILOSOPHY OF OUR LEGAL SYSTEM SUCH IMMUNITY ENCOURAGES FRIVOLOUS AND FABRICATED ACCUSATIONS I WOULD GO FURTHER AND RECOMMEND THAT STATES THAT INCLUDE THE IMMUNITY PROVISION SHOULD NOT BE ENTITLED TO FEDERAL FUNDING DROP THE CLAUSE MANDATING THE REPORTING OF CHILD ABUSE IN PRACTICE IT HAS RESULTED IN THE REPORTING OF THE MOST FRIVOLOUS AND ABSURD ACCUSATIONS BY TWO AND THREEYEAROLDS VENGEFUL FORMER SPOUSES HYSTERICAL MOTHERS OF NURSERY SCHOOL CHILDREN AND SEVERELY DISTURBED WOMEN AGAINST THEIR ELDERLY FATHERS HIGHLY SKILLED EXAMINERS PROFESSIONALS WHO ARE EXTREMELY KNOWLEDGEABLE ABOUT SEX ABUSE EXAMINERS WHO KNOW QUITE WELL THAT THE ACCUSATION IS FALSE ARE REQUIRED BY LAW TO REPORT THE ABUSE TO INDIVIDUALS WHO THEY OFTEN KNOW TO BE OVERZEALOUS INEXPERIENCED AND EVEN INCOMPETENT YET THEY FACE CRIMINAL CHARGES IF THEY DO NOT REPORT THESE ACCUSATIONS END FEDERAL FUNDING TO STATES IN WHICH SUSPECTED INDIVIDUALS ARE DEPRIVED OF DUE PROCESS PROTECTIONS PROSECUTORS TYPICALLY USE THEIR OWN EXPERTS TO EVALUATE THE CHILDREN BUT ARE ALLOWED TO PREVENT DEFENSE EXPERTS FROM EVALUATING THEM THE ACCUSED THEN IS DEPRIVED OF A FAIR TRIAL A RIGHT GUARANTEED TO HIM BY THE US CONSTITUTION PROVIDE FUNDING FOR PROGRAMS TO ASSIST THOSE WHO ARE FALSELY ACCUSED AS WELL AS CHILDREN WHO HAVE BEEN VICTIMIZED BY BEING USED AS VEHICLES FOR A FALSE ACCUSATION SUCH PROGRAMS COULD BE COMBINED WITH EXISTING CHILD ABUSE AND CHILD NEGLECT PROGRAMS REQUIRE INVESTIGATORY AGENCIES AT ALL LEVELS TO ROUTINELY NOTIFY AND INVITE FOR VOLUNTARY INTERVIEWS EVERY INDIVIDUAL ACCUSED OF CHILD ABUSE OR NEGLECT THESE SUSPECTS OF COURSE MUST FIRST BE INFORMED OF THEIR LEGAL RIGHTS THE FAILURE TO ROUTINELY EXTEND SUCH INVITATIONS SHOULD DEPRIVE THE AGENCY OF FUNDING REQUIRE LEGAL REPRESENTATION FOR CHILDREN WHO MAY BE VICTIMS OF EMBROILMENT IN FALSE ACCUSATIONS THESE RECOMMENDATIONS SOUND STRONG BUT FROM MY PERSPECTIVE THE US APPEARS TO BE WITNESSING ITS THIRD GREAT WAVE OF HYSTERIA THE FIRST THE SALEM WITCH TRIALS IN 1692 LASTED ONLY A FEW MONTHS NINETEEN PEOPLE WERE HANGED BEFORE IT BECAME APPARENT THAT THE ACCUSATIONS WERE SUSPECT IN THE 1950S AT THE TIME OF THE MCCARTHY HEARINGS HYSTERIA OVER THE COMMUNIST THREAT RESULTED IN THE DESTRUCTION OF MANY CAREERS OUR CURRENT HYSTERIA WHICH BEGAN IN THE EARLY 1980S IS BY FAR THE WORST WITH REGARD TO THE NUMBER OF LIVES THAT HAVE BEEN DESTROYED AND FAMILIES THAT HAVE DISINTEGRATED THERE IS NO QUESTION THAT MOST EFFORTS AT RECTIFICATION WILL PROVE FUTILE UNLESS THE MONDALE ACT MODIFICATIONS DESCRIBED HERE ARE IMPLEMENTED DR GARDNER A CLINICAL PROFESSOR OF CHILD PSYCHIATRY AT COLUMBIA UNIVERSITY IS AN EXPERT ON THE SEXUAL ABUSE OF CHILDREN SEE RELATED LETTER LETTERS TO THE EDITOR THE FEAR OF FALSE ACCUSATION WSJ MARCH 10 1993 9302220157 9303110168 930222 LEISURE & ARTS TELEVISION DECEPTION IN THE MOVIES ON THE NEWS BY DOROTHY RABINOWITZ NOW THAT WE HAVE ALL SEEN THE LATEST DOCUDRAMA FROM A NETWORK NEWS DIVISION NBC'S STAGED FILM OF A GENERAL MOTORS TRUCK CRASH DECEPTIONS PERPETRATED BY MADEFORTV MOVIES MAY SEEM COMPARATIVELY TRIFLING AND THEY ARE THAT DOESN'T MEAN THEIR EFFORTS TO CAPITALIZE ON THE VERY LATEST TRENDS IN HYSTERIA ARE HARMLESS THAT WHICH IS POUNDED HOME VIA TELEVISION HAS IT HARDLY NEEDS SAYING THE POWER TO SHAPE VIEWS AND FAN FEARS AS SURELY AS THE INCENDIARY DEVICES DATELINE NBC SECRETLY ATTACHED TO THE GM PICKUP COULD MAKE IT BURN WHAT COMES TO MIND SPECIFICALLY IS THE LATEST FEVER STAGE IN THE NATIONAL DELIRIUM OVER CHILD SEX ABUSE THOSE BURIED MEMORIES OF INCEST THAT ADULTS IN THEIR LATE 20S 30S AND 40S ARE ALL NOW BEING TOLD THEY CAN REMEMBER IF ONLY THEY TRY HARD ENOUGH THE QUINTESSENTIAL EXPRESSION OF THIS NEW DELIRIUM AIRS SUNDAY IN NOT IN MY FAMILY 911 PM EST ON ABC THERE ARE TWO HARD AND FAST RULES TO WHICH ALL TV FILMS ABOUT CHILD SEX ABUSE ADHERE THE ACCUSED IS FOR ONE ALWAYS GUILTY AS CHARGED IN THE MINDS OF NETWORK MOVIE MAKERS THERE IS NO SUCH THING AS A FALSE MOLESTATION CHARGE THE SECOND RULE IS THAT THE ABUSER MUST NEVER BE LESS THAN A WELLTODO PILLAR OF THE COMMUNITY IN THE WORLD OF THE TV MOVIE NO ONE FROM THE LOWER RUNGS OF THE SOCIOECONOMIC LADDER EVER RAPES AND SODOMIZES HIS CHILDREN SUNDAY'S MOVIE ADDS A NEW AND FASHIONABLE DIMENSION IE THE REPRESSED INCEST THEME TO VIEW THIS PICTURE INDEED IS TO GET THE COMPLETE GUIDE TO THE INNUMERABLE DIZZYING PREMISES OF THE CURRENT BIBLE FOR NEUROTICS THE COURAGE TO HEAL ITS MAIN PREMISE SEEMS TO BE THAT WE SHOULD LOOK TO EARLY INCESTUOUS ABUSE AS THE REASON FOR THE DIFFICULTIES THAT PSYCHOLOGICALLY TROUBLED PEOPLE HAVE WITH THEIR LIVES THIS THEORY APPARENTLY APPEALS TO A GROWING NUMBER OF PEOPLE LOOKING FOR WAYS TO EXPLAIN LOVELESS LIVES DIVORCES CAREER PROBLEMS BULIMIA WHATNOT THE BEAUTY OF THE REPRESSED INCEST EXPLANATION IS THAT TO ENJOY ITS VICTIM BENEFITS AND THE DISTINCTION OF BEING ASSOCIATED WITH A SURVIVOR GROUP IT ISN'T EVEN NECESSARY TO HAVE ANY RECOLLECTION THAT SUCH ABUSE TOOK PLACE IT IS ONE THING TO SEE THIS CRAZE PLAYED OUT IN A TV MOVIE AND QUITE ANOTHER TO WITNESS ITS EFFECTS ON REAL PEOPLE A LITTLE OVER A WEEK AGO SHIRLEY AND RAYMOND SOUZA A 61YEAROLD COUPLE FROM LOWELL MASS WERE FOUND GUILTY OF MULTIPLE UNPROVEN CHARGES THAT THEY HAD SEXUALLY MOLESTED THEIR SMALL GRANDCHILDREN AS IS USUALLY THE CASE WITH CHILDREN'S ACCUSATIONS EXTRACTED BY EAGER THERAPISTS AND PROSECUTORS THE ALLEGATIONS HAD ALL THE EARMARKS OF THE FANTASTIC ONE SIXYEAROLD GRANDCHILD SAID SHE WAS MOLESTED BY A MACHINE AS BIG AS A ROOM ANOTHER TOLD OF HAVING TO WEAR A GOLD CROWN AND COSTUME ANOTHER SAID SHE WAS PUT IN A GIANT CAGE AND WAS MADE TO DRINK A GREEN POTION NO PHYSICAL EVIDENCE OF SEX ABUSE NO CAGE NO COSTUMES WAS EVER PRODUCED BY WAY OF EVIDENCE HOW HAD ALL THIS COME TO PASS THEN THE SOUZAS PARENTS OF FIVE GROWN CHILDREN HAD A 27YEAROLD DAUGHTER SHIRLEY ANN WHO HAD READ THE COURAGE TO HEAL IN 1990 SHIRLEY ANN COMMENCED TO HAVE A DREAM IN WHICH SHE WAS SEXUALLY ASSAULTED BY HER MOTHER WHO HAD A PENIS BY HER BROTHER WHO PRESUMABLY HAD ONE TOO AND BY HER FATHER WHO RAPED HER WITH A CRUCIFIX ON AWAKENING SHIRLEY ANN RAN TO CALL HER MARRIED SISTERS AND SISTERINLAW TO WARN THEM TO KEEP THEIR CHILDREN AWAY FROM THEIR GRANDPARENTS BY THE TIME THE ADULT SOUZA CHILDREN HAD FINISHED SEEING COUNSELORS AND PASSING THE BOOK AROUND RAY SOUZA A RETIRED TELEPHONE COMPANY SUPERVISOR AND HIS WIFE SHIRLEY A NURSE WERE INDICTED OFFERED A CHANCE TO WALK AWAY IF THEY WOULD PLEAD GUILTY THEY REFUSED WENT TO TRIAL AND WERE CONVICTED AT THEIR SENTENCING ON MARCH 5 THE SOUZAS WHO HAVE NEVER SPENT A DAY APART FROM ONE ANOTHER EACH FACE A POSSIBLE LIFE SENTENCE ABC'S MOVIE FAITHFULLY REFLECTS ALL THOSE THEORIES AND THE MINDSET THAT PERSUADED A JUDGE TO CONVICT THE COUPLE ON THE BASIS OF CHARGES ORIGINATING ENTIRELY IN THEIR TROUBLED DAUGHTER'S DREAM IN THE MOVIE A PREGNANT HAPPILY MARRIED SO SHE THINKS VERONICA JOANNA KERNS BEGINS EATING COMPULSIVELY YES PEOPLE WHO CAN'T STOP GORGING MAY NOW CONSIDER THEMSELVES LIKELY INCEST SURVIVORS VERONICA'S SISTER BECKY HAS TROUBLE WITH RELATIONSHIPS WHEN VERONICA'S BABY IS BORN THE CHILD REFUSES TO NURSE IN DUE TIME VERONICA AND BECKY ARE SUMMONING BURIED MEMORIES OF THEIR MOLESTATION BY THEIR FATHER GEORGE GRIZZARD A BANKER AND PILLAR OF THE COMMUNITY THIS DARK FAMILY SAGA ENDS MOVIE STYLE ON A NOTE OF TRIUMPH WITH THE PILLAR OF THE COMMUNITY DISGRACED THIS COMES ONLY AFTER THE TWO SISTERS HAVE EXCHANGED ENDLESS DATA FROM THEIR RESPECTIVE FLASHBACKS AND TRANCES WE LEAVE THIS HAPPY FAMILY OF YUPPIE SIBLINGS TO GO ON WITH THEIR NEWLY PROMISING LIVES NOW POSSIBLE JUST AS THE BOOK SAYS BECAUSE THEY HAVE UNCOVERED THEIR REPRESSED MEMORIES ALL IS NOW MAGICALLY WELL WITH THE BABY TOO WHO AS WE ARE SHOWN CAN NOW HAPPILY SUCKLE HIS MOTHER'S BREAST IN THE WORLD OF FICTION ALL IS WELL NOT SO IN THE REAL WORLD OF MASSACHUSETTS WHERE THE JUSTICE SYSTEM IS ABOUT TO SEND TWO PEOPLE TO JAIL BECAUSE THEIR DAUGHTER HAD A DREAM SYCOPHANCY UNLIMITED AWARD THIS CITATION IS PRESENTED TO JOURNALISTS WHO HAVE CONTRIBUTED SIGNIFICANTLY TO BROADCAST JOURNALISM'S ALREADY BRIMMING LEVELS OF BOOTLICKING FLATTERY CANT AND BALDERDASH THE DISTINGUISHED WINNER OF OUR AWARD THIS MONTH IS THE WASHINGTON POST'S BOB WOODWARD WHO APPEARED ON NBC'S MEET THE PRESS ON FEB 14 TO DISCUSS INVESTIGATIVE JOURNALISM AND NBC'S RIGGED CRASH SCENE MR WOODWARD LET IT BE KNOWN THAT NBC HAD IN HIS VIEW EMERGED FROM THIS AFFAIR WITH ITS HONOR INTACT AND INDEED WITH A CERTAIN HEROIC STATURE NOT ONLY HAD THIS FIRST DOCUMENTED CASE OF JOURNALISMASARSON PROVIDED AS MR WOODWARD EARNESTLY OPINED A WONDERFUL OPPORTUNITY NBC HE WENT ON TO MARVEL HAD CONFRONTED ITS MISTAKE RATHER THAN COVERING IT UP UNDAUNTED APPARENTLY BY THE FACT THAT NBC NEWS PRESIDENT MICHAEL GARTNER AND A TEAM OF LAWYERS AND ASSORTED FLUNKIES HAD DONE NOTHING BUT COVER UP AND STONEWALL TO THE LAST HOUR TILL THEY WERE CONFRONTED WITH UNANSWERABLE TO SAY NOTHING OF HIGHLY PUBLIC PROOFS OF THEIR DECEPTION MR WOODWARD PRESSED ON WITH HIS TRIBUTE TO THE NETWORK'S PROBITY AND FORTHRIGHTNESS THIS SINGULAR TESTIMONIAL ENDED WITH MR WOODWARD'S RINGING ASSERTION THAT NBC IS TO BE SALUTED AS ARE YOU BOB FOR A PERFORMANCE FUTURE CONTENDERS FOR THIS AWARD WON'T FIND IT EASY TO EQUAL SEE RELATED LETTER LETTERS TO THE EDITOR THE FEAR OF FALSE ACCUSATION WSJ MARCH 10 1993 9302220130 9303100166 930310 WHO'S NEWS PACIFIC BANK PACIFIC BANK SAN FRANCISCO JOHN P HALICKY 43 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BANKING COMPANY MR HALICKY HAD BEEN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HOMESTEAD SAVINGS & LOAN IN MILLBRAE CALIF 9303100165 930310 WHO'S NEWS FIRST OF MICHIGAN CORP FIRST OF MICHIGAN CORP DETROIT IAN BUND 49 YEARS OLD INVESTMENT AND CORPORATE FINANCE ADVISER WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF CORPORATE FINANCE OF THIS INVESTMENT BANKING AND BROKERAGE CONCERN 9303100164 930310 WHO'S NEWS NEIMAN MARCUS GROUP INC NEIMAN MARCUS GROUP INC NEWTON MASS MATINA S HORNER 53 YEARS OLD WAS NAMED TO THE BOARD OF THIS RETAILER EXPANDING IT TO SIX MEMBERS SHE IS AN EXECUTIVE VICE PRESIDENT OF THE TEACHERS INSURANCE AND ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND AND WAS PREVIOUSLY PRESIDENT OF RADCLIFFE COLLEGE 9303100163 930310 WHO'S NEWS BONAL INTERNATIONAL BONAL INTERNATIONAL INC SOUTHFIELD MICH ROBERT O SORNSON RETIRED CHRYSLER CORP ATTORNEY AND RONALD WINGFIELD OLIVERIO FIRST VICE PRESIDENT AND BRANCH MANAGER OF THE SOUTHFIELD BRANCH OF FIRST OF MICHIGAN CORP WERE NAMED DIRECTORS OF THIS PROVIDER OF STRESS RELIEVING EQUIPMENT THE APPOINTMENTS INCREASE THE BOARD SIZE TO SEVEN 9303100162 930310 NORTHROP WILL CUT 2400 JOBS IN 1993 MOSTLY BY LAYOFFS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NORTHROP CORP SAID IT WILL CUT AN ADDITIONAL 2400 JOBS IN 1993 WITH MORE CUTS TO FOLLOW IN 1994 BECAUSE OF SLOWDOWNS IN MILITARY AND COMMERCIAL AIRCRAFT PROGRAMS AND THE NEED TO CUT COSTS THE LATEST CUTBACK WILL BRING YEAREND EMPLOYMENT AT THE AEROSPACE COMPANY TO ABOUT 30600 DOWN 37 FROM A PEAK OF 48200 IN EARLY 1988 ABOUT 1700 OF THIS YEAR'S JOB CUTS WILL COME THROUGH LAYOFFS WITH 700 OTHER POSITIONS CUT THROUGH NORMAL ATTRITION THE COMPANY ALREADY ELIMINATED 600 JOBS IN THE FIRST TWO MONTHS OF THIS YEAR NORTHROP WHICH BUILDS HUGE FUSELAGE SECTIONS FOR BOEING CO'S 747 JUMBO JETLINER AT ITS AIRCRAFT DIVISION SAID 1200 OF THE CUTS ARE DUE TO BOEING'S PLAN TO CUT 747 PRODUCTION BY 40 IN THE NEXT 18 MONTHS THAT PART OF THE OVERALL EMPLOYMENT CUT IS MUCH LARGER THAN THE 200 JOB LOSSES NORTHROP ESTIMATED WHEN BOEING ANNOUNCED ITS PLANS IN JANUARY A NORTHROP SPOKESMAN SAID EARLIER ESTIMATES DID NOT ACCOUNT FOR ALL PARTS OF THE WORK FORCE THAT WOULD BE AFFECTED BY THE SLOWDOWN THE COMPANY SAID THE 10300WORKER AIRCRAFT UNIT BASED IN HAWTHORNE CALIF WOULD HAVE EXPERIENCED MORE SEVERE LAYOFFS IF NOT FOR AN INFUSION OF DEVELOPMENT WORK ON AN ADVANCED VERSION OF THE F/A18 FIGHTER JET NORTHROP BUILDS A SECTION OF THE FIGHTER'S FUSELAGE FOR PRIME CONTRACTOR MCDONNELL DOUGLAS CORP ABOUT 500 OF THIS YEAR'S JOB CUTS ARE DUE TO DECLINING DEVELOPMENT WORK ON THE B2 STEALTH BOMBER THE COMPANY SAID THE B2 DIVISION BASED IN PICO RIVERA AND PALMDALE CALIF EMPLOYS 12300 WORKERS THE NORTHROP SPOKESMAN SAID FURTHER CUTS ARE EXPECTED AT THE B2 DIVISION NEXT YEAR AS SOME PHASES OF WORK ON THE AIRCRAFT BEGIN TO WIND DOWN FINAL DELIVERIES OF THE BOMBER ARE SCHEDULED FOR 1997 AN ADDITIONAL 300 OF THIS YEAR'S JOB CUTS WILL OCCUR AT THE ELECTRONICS UNIT WHICH EMPLOYS 5750 PEOPLE IN CALIFORNIA MASSACHUSETTS AND ILLINOIS THE COMPANY SAID 300 MORE JOBS WILL BE CUT AT ITS INFORMATION SERVICES UNIT WHICH PROVIDES COMPUTER SUPPORT TO VARIOUS SOUTHERN CALIFORNIA OPERATIONS 9303100161 930310 BANKS' EARNINGS INCREASED SHARPLY IN 4TH PERIOD AND YEAR FDIC REPORTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S COMMERCIAL BANKS EARNED 82 BILLION IN THE FOURTH QUARTER AND A RECORD 3225 BILLION IN 1992 ALTHOUGH LENDING DECLINED THE FEDERAL DEPOSIT INSURANCE CORP REPORTED THE AGENCY'S QUARTERLY BANKING PROFILE SHOWS HOW DRAMATICALLY THE INDUSTRY AIDED BY LOW INTEREST RATES HAS RECOVERED FROM THE WORST BANKING CRISIS SINCE THE DEPRESSION TODAY'S INDUSTRY IS WELLCAPITALIZED HOLDS LARGE RESERVES AGAINST TROUBLED LOANS AND IS SHOWING THE HIGHEST RETURNS 096 OF ASSETS LAST YEARSINCE THE FDIC WAS CREATED IN 1934 ALTHOUGH FOURTHQUARTER EARNINGS ROSE SHARPLY FROM 3 BILLION A YEAR EARLIER THEY DECLINED SLIGHTLY FROM 85 BILLION IN THE THIRD QUARTER NET INCOME FOR ALL OF 1992 WAS 79 HIGHER THAN THE 1805 BILLION THE INDUSTRY EARNED IN 1991 AND 30 ABOVE THE PREVIOUS RECORD OF 2481 BILLION IN 1988 YET TOTAL LOANS OUTSTANDING DECLINED TO 2032 TRILLION BY THE END OF THE YEAR A DROP OF 4 BILLION DURING THE QUARTER AND 205 BILLION FROM A YEAR EARLIER AT A TIME WHEN LOAN DEMAND IS LOW MANY BANKS HAVE BEEN BOOSTING THEIR INVESTMENT IN GOVERNMENT SECURITIES IN ORDER TO TAKE ADVANTAGE OF THE WIDE SPREAD BETWEEN THE LOW RATES THEY'RE PAYING ON DEPOSITS AND THE HIGHER RATES THEY EARN ON SECURITIES TODAY PRESIDENT CLINTON PLANS TO ANNOUNCE A PACKAGE OF REGULATORY CHANGES DESIGNED TO ENCOURAGE BANK LENDING PARTICULARLY TO SMALL BUSINESSES YESTERDAY THE TREASURY SOUGHT TO STIFLE BONDMARKET RUMORS THAT THE PLAN WILL INCLUDE MEASURES TO DISCOURAGE BANKS FROM PURCHASING TREASURY SECURITIES THE BASIC MOTIVE OF THE PLAN IS TO REMOVE THE IMPEDIMENTS TO LENDING NOT TO IMPOSE NEW IMPEDIMENTS TO SECURITIES PURCHASES A TREASURY OFFICIAL SAID THE NATION'S 414 SAVINGS BANKS EARNED 385 MILLION IN THE FOURTH QUARTER A TURNAROUND FROM THE 569 MILLION IN LOSSES A YEAR EARLIER FOR THE YEAR AS A WHOLE SAVINGS BANKS EARNED 142 BILLION A REVERSAL FROM LOSSES OF 132 BILLION IN 1991 THE NUMBER OF COMMERCIAL AND SAVINGS BANKS ON THE FDIC'S PROBLEM LIST OF TROUBLED INSTITUTIONS FELL TO 863 AT THE END OF LAST YEAR FROM 1090 AT THE END OF 1991 BUT THIS NUMBER MAY OVERSTATE THE NUMBER OF WEAK BANKS BECAUSE 349 INSTITUTIONS ON THE LIST ARE IN THE FDIC'S HIGHEST CAPITAL CATEGORY THIS MEANS THAT THEY HAVE A LARGE CUSHION AGAINST FAILURE ALTHOUGH THEY MAY SUFFER FROM POOR ASSET QUALITY AND OTHER PROBLEMS THE PROBLEM LIST WAS THE SMALLEST SINCE 1984 THE LAST YEAR IN WHICH FEWER THAN 100 BANKS FAILED A WAVE OF BANK FAILURES THAT STARTED WITH OIL REAL ESTATE AND FARMING PROBLEMS A DECADE AGO DRAINED THE BANK DEPOSITINSURANCE FUND IN RESPONSE CONGRESS GAVE THE FUND A 30 BILLION TREASURY LINE OF CREDIT AND TIGHTENED BANK REGULATION YESTERDAY FDIC CHAIRMAN ANDREW HOVE MADE IT CLEAR THAT THE AGENCY ISN'T LIKELY TO TOUCH THAT LINE OF CREDIT THE BANKING CLEANUP ISN'T TURNING OUT TO BE THE TRAGEDY THAT SOME PEOPLE HAD EXPECTED HE SAID BUT THE FDIC HAS BEEN CAUTIOUS ABOUT DECLARING THE BANKING CRISIS OVER DESPITE THE SHARP IMPROVEMENT IN CONDITIONS THE AGENCY HASN'T OFFICIALLY CHANGED ITS PROJECTION THAT 120 BANKS WITH TOTAL ASSETS OF 76 BILLION WILL FAIL THIS YEAR YESTERDAY MR HOVE ADMITTED THAT THE NUMBER WILL BE MUCH SMALLER PERHAPS BETWEEN 30 AND 60 FAILURES THIS YEAR AND THAT ASSETS OF FAILED BANKS WILL RANGE FROM 25 BILLION TO 40 BILLION AS A RESULT THE TOTAL LOSSES TO THE BANK INSURANCE WILL BE ABOUT HALF THE 10 BILLION PREVIOUSLY ESTIMATED SO FAR THIS YEAR SIX BANKS HAVE FAILED MR HOVE SAID 10 ADDITIONAL BANKS THAT WERE CRITICALLY UNDERCAPITALIZED AT THE END OF 1992 WILL BE CLOSED BY THE END OF APRIL UNLESS THEY'RE PURCHASED OR MERGED BEFORE THEY FAIL THE REPORT NOTED THAT SOME SAVINGS BANKS PARTICULARLY IN NEW ENGLAND CONTINUE TO FACE PROBLEMS FOR COMMERCIAL BANKS THE FDIC REPORT SAID THAT THE TWO MAIN COMPONENTS OF 1992'S RECORD EARNINGS THE REDUCED BURDEN OF TROUBLED ASSETS AND WIDE NET INTEREST MARGINS SHOULD CARRY OVER INTO 1993 9303100160 930310 ONTARIO HYDRO TO CUT SHARPLY SPENDING LEVELS REDUCTION OF 804 BILLION IN 10YEAR CAPITAL PLAN WILL HELP TRIM DEBT BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ONTARIO HYDRO ONE OF NORTH AMERICA'S LARGEST UTILITIES ANNOUNCED PLANS TO SLASH ITS CAPITAL SPENDING LEVELS AND OPERATING BUDGETS AS PART OF AN EFFORT TO RESTORE THE UTILITY TO FINANCIAL HEALTH HYDRO SAYS IT PLANS TO CUT ANOTHER 10 BILLION CANADIAN DOLLARS US804 BILLION FROM ITS C30 BILLION 10YEAR CAPITAL SPENDING PLAN A 16 REDUCTION IN ITS WORK FORCE AND OTHER COSTCUTTING MEASURES WILL TRIM ABOUT C875 MILLION FROM THE STATEOWNED UTILITY'S ANNUAL OPERATING BUDGET IN 1994 SAVINGS WHICH WILL JUMP TO C14 BILLION BY 1996 FOR 1992 ANNUAL COSTS WERE ESTIMATED AT C74 BILLION THESE MEASURES HYDRO SAYS COME AS A RESULT OF A THREEMONTH INTERNAL REVIEW COMMISSIONED BY ITS NEWLY APPOINTED CHAIRMAN MAURICE STRONG MR STRONG WHO HAS FREQUENTLY DESCRIBED HYDRO AS A COMPANY IN CRISIS SAID THESE AND OTHER STEPS WILL ALLOW THE UTILITY TO CUT AT LEAST C13 BILLION FROM ITS DEBT OF C34 BILLION OVER THE NEXT 10 YEARS THE RESTRUCTURING ALSO WILL ALLOW HYDRO TO MOVE QUICKLY TO ADDRESS THE CONCERNS OF COMMERCIAL INDUSTRIAL AND RESIDENTIAL POWER USERS IN THE PROVINCE WHO HAVE SEEN THEIR ELECTRICITY RATES RISE 30 OVER THE PAST THREE YEARS AS A RESULT OF COST OVERRUNS AT VENTURES SUCH AS THE C14 BILLION DARLINGTON NUCLEAR POWER PLANT IN THE 1980S HYDRO CUSTOMERS NOW PAY AMONG THE HIGHEST ELECTRICITY RATES IN NORTH AMERICA HYDRO HAS PROMISED IT WON'T RAISE ELECTRICITY RATES AT ALL NEXT YEAR AND WILL KEEP FUTURE RATE INCREASES WITHIN THE RATE OF INFLATION IN ADDITION HYDRO SAID IT HOPES TO SELL SOME OF ITS 3500 MEGAWATTS OF SURPLUS POWER AT A DISCOUNT TO INDUSTRIAL BUYERS WHO ARE ESTABLISHING NEW FACILITIES IN THE PROVINCE OTHER SIMILAR INCENTIVES ALSO ARE BEING STUDIED THIS IS VERY WELCOME NEWS FOR A LOT OF HYDRO USERS IN THIS PROVINCE SAID THOMAS ADAMS AN ANALYST AT ENERGY PROBE A TORONTO ENVIRONMENTAL LOBBY GROUP IT ADDRESSES A LOT OF THEIR CONCERNS ITEMS IN HYDRO'S SPENDING PLAN WHICH COULD FALL UNDER THE AX IN THE COMING MONTHS INCLUDE THE NIAGARA AND MATTAGAMI HYDROELECTRIC PROJECTS FOR A SAVING OF C28 BILLION AND THE RETUBING OF PART OF THE BRUCE NUCLEAR POWER PLANT A SAVINGS OF AN ADDITIONAL C16 BILLION A DECISION TO DELAY OR CANCEL THE SPENDING ON BRUCE COULD FORCE HYDRO TO MOTHBALL PART OF THE REACTOR WITHIN THE NEXT FEW YEARS ALSO CUT ARE PURCHASES OF PRIVATELY GENERATED POWER THE UTILITY SAID IN VIEW OF THE CURRENT POWER SURPLUS HYDRO WILL SLASH ITS C17 BILLION THREEYEAR BUDGET FOR SUCH PURCHASES BY A FURTHER C450 MILLION THE STAFF REDUCTIONS WHICH HYDRO HOPES TO ACCOMPLISH THROUGH EARLY RETIREMENT PACKAGES AND VOLUNTARY SEVERANCE ARRANGEMENTS WILL COST THE UTILITY ABOUT C500 MILLION HYDRO OFFICIALS ACKNOWLEDGE THEY ALSO WILL SEEK TO REDUCE WAGES AND BENEFITS OF THEIR 23000 REMAINING EMPLOYEES AND WILL PURSUE THIS OBJECTIVE AS NEGOTIATIONS FOR A NEW CONTRACT WITH THE UTILITY'S MAIN UNION THE CANADIAN UNION OF PUBLIC EMPLOYEES GET UNDER WAY LATER THIS YEAR UNION MEMBERS NOW RECEIVE AN AVERAGE OF C60000 ANNUALLY IN SALARIES AND BENEFITS THEY'LL BE LOOKING FOR A NEEDLE IN A HAYSTACK IF THEY'RE LOOKING FOR ROLLBACKS ON TOP OF THIS DOWNSIZING SAID PETER KELLY VICEPRESIDENT OF THE UNION'S LOCAL 1000 WE'D RATHER TO SEE SOME CUTS IN THE HUGE BUREAUCRACY ABOVE US HYDRO ALREADY HAS CUT ABOUT C11 BILLION FROM THE 10YEAR CAPITAL SPENDING PLAN CANCELING A MAJOR POWER PURCHASE CONTRACT FROM ITS MANITOBA COUNTERPART LAST YEAR IT ELIMINATED 1500 JOBS ONTARIO'S PROVINCIAL ENERGY MINISTER BUD WILDMAN HAILS THE NEW RESTRUCTURING PACKAGE AS A SIGNAL THAT HYDRO IS RETURNING TO FINANCIAL HEALTH BUT OTHER ISSUES REMAIN ON THE TABLE FOR THE GOVERNMENT TO HANDLE ONE OF WHICH IS THE POSSIBLE PRIVATIZATION OF THE UTILITY THIS IS ONE OF SEVERAL LONGERTERM OPTIONS BEING STUDIED AND DISCUSSED MR STRONG SAID BUT HE ADDS THAT RESPONSIBILITY FOR INITIATING SUCH A PROPOSAL LIES IN THE HANDS OF THE ONTARIO GOVERNMENT AND NOT WITH HYDRO TO DATE GOVERNMENT OFFICIALS HAVE REJECTED THAT OPTION 9303100159 930310 WHO'S NEWS WORTHINGTON INDUSTRIES INC WORTHINGTON INDUSTRIES INC COLUMBUS OHIO JOHN P MCCONNELL 39 YEARS OLD CURRENTLY VICE CHAIRMAN OF THIS STEEL PROCESSING AND MOLDED PLASTIC PRODUCTS CONCERN WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE EFFECTIVE JUNE 1 HE SUCCEEDS HIS FATHER JOHN H MCCONNELL 69 WHO WILL CONTINUE AS CHAIRMAN WORTHINGTON INDUSTRIES ALSO MAKES LOWPRESSURE CYLINDERS AND STEEL CASTINGS 9303100158 930310 WHO'S NEWS MEN'S WEARHOUSE MEN'S WEARHOUSE FREMONT CALIF DAVID EDWAB CHIEF FINANCIAL OFFICER OF THIS MEN'S CLOTHING RETAILER WAS NAMED TO THE ADDITIONAL NEWLY CREATED POST OF CHIEF OPERATING OFFICER 9303100157 930310 WHO'S NEWS MATERIAL SCIENCES CORP MATERIAL SCIENCES CORP ELK GROVE VILLAGE ILL J FRANK LEACH VICE CHAIRMAN OF CONSOLIDATED FREIGHTWAYS INC WAS NAMED A DIRECTOR OF THIS COATED MATERIALS CONCERN FILLING A VACANCY 9303100156 930310 FINANCING BUSINESS CANADIAN IMPERIAL BANK OF COMMERCE CANADIAN IMPERIAL BANK OF COMMERCE TORONTO SAID IT EXPECTS TO RAISE 4073 MILLION CANADIAN DOLLARS US3273 MILLION FROM THE ISSUANCE OF 15 MILLION COMMON SHARES AT C2715 A SHARE CANADIAN IMPERIAL SAID THE PROCEEDS WILL BE USED TO INCREASE ITS TIER 1 CAPITAL WOOD GUNDY INC TORONTO IS THE LEAD UNDERWRITER OF THE ISSUE CANADIAN IMPERIAL CURRENTLY HAS ABOUT 190 MILLION SHARES OUTSTANDING 9303100155 930310 WHO'S NEWS HARKEN ENERGY CORP HARKEN ENERGY CORP DALLAS HARVEY V RISIEN JR WAS NAMED PRESIDENT OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY AND A MEMBER OF ITS BOARD THE BOARD'S SIZE INCREASES TO SEVEN MR RISIEN 39 YEARS OLD WAS MOST RECENTLY PRESIDENT AND A DIRECTOR OF CHUSKA RESOURCES CORP WHICH WAS ACQUIRED BY HARKEN LAST MONTH MIKEL D FAULKNER WILL NO LONGER BE PRESIDENT OF HARKEN BUT WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9303100154 930310 WHO'S NEWS BIG O TIRES INC BIG O TIRES INC ENGLEWOOD COLO EVERETT H JOHNSTON 54 YEARS OLD WAS NAMED TO FILL A VACANCY ON THE TIRE COMPANY'S BOARD MR JOHNSTON IS A FORMER CHIEF FINANCIAL OFFICER TREASURER AND CONTROLLER OF SIMPSON MANUFACTURING CO WHERE HE STILL SERVES AS A DIRECTOR 9303100153 930310 WHO'S NEWS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO LARRY M JAMES CHIEF OPERATING OFFICER AND A DIRECTOR OF THIS REGIONAL LONGDISTANCE AND OPERATORSERVICES CONCERN WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT MR JAMES 45 YEARS OLD SUCCEEDS PARRIS HOLMES JR 49 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9303100152 930310 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN DWIGHT L ROBERTSON WAS NAMED PRESIDENT OF A NEW SUBSIDIARY TO COORDINATE MANAGED HEALTH CARE PRODUCTS AND SERVICES FOR THIS INSURANCE CONCERN DR ROBERTSON 42 YEARS OLD HEADS THE NEW TRAVELERS HEALTH CO UNIT HE WAS PREVIOUSLY PRESIDENT OF TRAVELERS' CONSERVCO SUBSIDIARY ANOTHER MEDICAL BENEFITS BUSINESS THE NEW UNIT WILL COORDINATE THE BUSINESSES OF CONSERVCO AND SEVERAL OTHER HEALTH CARE INSURANCE UNITS TRAVELERS SAID DR ROBERTSON WILL REPORT TO ELLIOTT F GERSON WHO WAS RECENTLY NAMED PRESIDENT OF TRAVELERS' MANAGEDCARE AND EMPLOYEE BENEFITS INSURANCE OPERATIONS 9303100151 930310 PEPSI DISCLOSES PLANS TO INVEST 115 MILLION IN THE BUDAPEST AREA PURCHASE NY PEPSICO INC ON THE HEELS OF ITS PLAN TO INVEST 750 MILLION IN MEXICO DURING THE NEXT FIVE YEARS SAID IT WILL POUR 115 MILLION INTO THE AREA OF BUDAPEST OVER THE SAME TIME PERIOD SEPARATELY WAYNE CALLOWAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE FOOD AND BEVERAGE COMPANY SAID IN AN INTERVIEW THAT HE EXPECTS PEPSICO'S SALES IN 1993 TO INCREASE BETWEEN 13 AND 15 LAST YEAR SALES ROSE 14 TO 2197 BILLION THE MOVES IN HUNGARY ARE PART OF THE GROWING BATTLE BETWEEN PEPSI AND COCACOLA CO FOR MARKET SHARE IN EASTERN EUROPE PEPSI SAID ITS LATEST INVESTMENT INCLUDES ACQUISITION OF A 79 STAKE IN ONE OF ITS BOTTLING AND DISTRIBUTION OPERATIONS IN BUDAPEST WHICH HAD BEEN OWNED BY THE GOVERNMENT THAT INVESTMENT WILL ALLOW PEPSI TO COMPETE DIRECTLY WITH COKE WHICH HAD GREATER FLEXIBILITY IN MARKETING AND DISTRIBUTION BECAUSE ITS HUNGARIAN BOTTLER WAS PRIVATIZED IN 1992 GOVERNMENT OWNERSHIP OF THE PEPSI BOTTLER HAD LIMITED THE COMPANY TO SELLING JUST TWO COLAS AND 7UP MOSTLY IN ONELITER OR SMALLER BOTTLES COKE MEANWHILE FLOODED THE MARKET WITH NEW DRINKS LIKE FANTA AND SPRITE PRIVATIZATION OF PEPSI'S BOTTLER WILL ALLOW IT TO CONCENTRATE ON SELLING BIGGER BOTTLES AND ADD 11 BRANDS INCLUDING CADBURY SCHWEPPES PLC'S LINE OF GINGER ALE AND TONIC WATER AS WELL AS PEPSI'S MIRANDA ORANGE DRINK THE BOTTLER WILL GRADUALLY PHASE OUT THE LOCAL FLAVORED BRANDS IT HAD BEEN SELLING PEPSI SAYS IT HAD 33 OF THE HUNGARIAN MARKET AT THE END OF 1992 COKE FOR ITS PART CLAIMS ALMOST 37 OF THE MARKET IN AN INTERVIEW MR CALLOWAY WOULDN'T COMMENT SPECIFICALLY ON ANALYSTS' ESTIMATES OF 1993 PERSHARE EARNINGS OF 2 TO 210 HE DID NOTE THOUGH THAT THOSE ESTIMATES APPROXIMATE THE COMPANY'S HISTORICAL ANNUAL GROWTH RATE OF 15 THE BUSINESS FEELS GOOD AND LOOKS GOOD HE SAID WE'RE ON OUR HISTORICAL GROWTH RATES IN THE US SOFTDRINK BUSINESS WHICH GREW ONLY 15 IN 1992 MR CALLOWAY SAID INDUSTRY VOLUME SHOULD GROW 2 OR BETTER IN 1993 AND PEPSICO EXPECTS TO EXCEED THAT IF THE INDUSTRY IS 2 HE SAID WE EXPECT TO DO 4 9303100150 930310 WHO'S NEWS WEST POINTPEPPERELL INC WEST POINTPEPPERELL INC WEST POINT GA JOSEPH L JENNINGS JR PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TEXTILE COMPANY WAS ELECTED A DIRECTOR MR JENNINGS 55 YEARS OLD WAS ALSO NAMED TO THE BOARD OF VALLEY FASHIONS CORP A NEW YORK HOLDING COMPANY THAT OWNS 95 OF WEST POINTPEPPERELL HE FILLS ONE OF THREE SEATS VACATED WHEN CHICAGO INVESTOR WILLIAM FARLEY SEVERED TIES WITH THE COMPANY LAST SEPTEMBER THERE ARE NOW NINE DIRECTORS ON THE BOARD 9303100149 930310 WHO'S NEWS PROCTER & GAMBLE CO PROCTER & GAMBLE CO CINCINNATI JOSEPH T GORMAN CHAIRMAN AND CHIEF EXECUTIVE OF TRW INC HAS BEEN ELECTED TO THE 19MEMBER BOARD OF THIS CONSUMER PRODUCTS MAKER MR GORMAN 55 YEARS OLD WILL SERVE OUT THE REMAINING TERM OF THEODORE F BROPHY A DIRECTOR FOR THE PAST DECADE WHO WILL RETIRE IN MAY AT AGE 70 WALTER F LIGHT WHO IS LISTED AS AGE 69 IN THE OCTOBER 1992 PROXY STATEMENT WILL ALSO BE RETIRING FROM THE BOARD THIS SPRING ACCORDING TO SOMEONE CLOSE TO THE COMPANY MR LIGHT RETIRED CHAIRMAN OF NORTHERN TELECOM HAS BEEN A DIRECTOR SINCE 1980 P&G DECLINED TO CONFIRM MR LIGHT'S DEPARTURE 9303100148 930310 AVERAGE YIELDS ON CDS WERE MIXED IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE COMPANIES WERE MIXED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED DOWN TO 272 FROM 273 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 489 FROM 494 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE COMPANIES ROSE TO 307 FROM 305 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLID TO 478 FROM 483 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 278 FROM 277 ON FIVEYEAR JUMBOS THE AVERAGE REMAINED AT 499 ACCORDING TO BANXQUOTE 9303100146 930310 GERBER PRODUCTS STOCK BUYBACK FREMONT MICH GERBER PRODUCTS CO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF FOUR MILLION COMMON SHARES THE BABYFOOD CONCERN WHICH AT JAN 31 HAD 735 MILLION SHARES OUTSTANDING SAID IT EXPECTS TO EXHAUST AN EXISTING FOUR MILLION SHARE REPURCHASE AUTHORIZATION WITHIN THE NEAR FUTURE THE EXISTING AUTHORIZATION DATES BACK TO MAY 9303100145 930310 SYSCO BUYBACK PROGRAM HOUSTON SYSCO CORP SAID ITS BOARD APPROVED AN INCREASE IN ITS COMMON STOCKREPURCHASE PLAN TO EIGHT MILLION SHARES FROM FIVE MILLION THE FOOD SERVICE DISTRIBUTION COMPANY SAID IT LAUNCHED THE BUYBACK PROGRAM IN MAY 1992 TO OFFSET THE ADDITIONAL SHARES IT ISSUES AS PART OF THE COMPANY'S EMPLOYEE BENEFIT PLAN TO DATE THE COMPANY SAID IT HAS REPURCHASED 47 MILLION SHARES THE COMPANY HAD 1864 MILLION SHARES OUTSTANDING AS OF DEC 26 9303100144 930310 TREASURY PLANS TO SELL 232 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 175 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2338 BILLION THE OFFERING WHICH WILL BE DATED MARCH 18 WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JUNE 17 1993 AND SEPT 16 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794D50 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794F74 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9303100143 930310 LEISURE & ARTS KISS ME CAT BY JUDITH GINGOLD ARMANDO ACOSTA ALSO KNOWN AS JIVANMUKTA SWAMI GANAPATI IS A PERFECTLY REALIZED BEING NEVERTHELESS HE WANTS TO DIRECT HIS FIRST FEATURELENGTH FILM ROMEOJULIET IS A MUSICAL EPIC THAT COMBINES PROKOFIEV'S BALLET SUITE WITH SHAKESPEARE'S VERSE IN A UNIQUE ADAPTATION OF THE LEGENDARY LOVE STORY PERFORMED BY AN INTERNATIONAL CAST OF 150 CATS YES CATS THE SENSUOUS CREATURES WORSHIPPED BY THE ANCIENT EGYPTIANS AND ON PUBLISHERS' ROW BUT BARELY VISIBLE IN OUR CANINECENTRIC CINEMA STIGMATIZED AS FINICKY THEY HAVE BEEN RELEGATED TO WALKON ROLES AS PETS OR VAGRANTS NOW THEIR GRACEFUL MOVEMENTS HAVE BEEN CAPTURED ON VIDEO TRANSFERRED TO FILM AND SYNCHRONIZED TO A SOUNDTRACK THE CATS SEEM TO DANCE TO THE MUSIC MOSTLY IN SLOW MOTION THE LOOK IS AS FUZZY AS THE CATS FELINES PLAY ALL THE MAJOR PARTS INCLUDING THE ROMANTIC LEADS CONVEYING NUGGETS OF SHAKESPEARE'S POETRY CEREBRALLY CAT TO CAT FOR THE BENEFIT OF LESS INTUITIVE SPECIES THE VERSE IS SPOKEN BY AN UNSEEN ENSEMBLE OF ACTORS INCLUDING VANESSA REDGRAVE BEN KINGSLEY AND MAGGIE SMITH THE MAN RESPONSIBLE FOR THIS UNUSUAL ENTERTAINMENT IS A LEONINE 54YEAROLD AMERICAN WHO FIRST ENVISAGED THE PROJECT IN 1964 A FEW YEARS BEFORE DROPPING OUT OF A PROMISING CAREER IN FILMS AND ADVERTISING AFTER A SPIRITUAL QUEST THAT TOOK HIM AROUND THE WORLD HE BECAME AN INITIATE OF PARAMAHANSA MUKTANADA THE CHERUBIC SWAMI OF JOHN DENVER AND JERRY BROWN AND A TEACHER OF MEDITATION NOW MR ACOSTA HAS HUNDREDS MAYBE THOUSANDS OF DISCIPLES OF HIS OWN WITH WHOM HE ENJOYS AN UNDERAMANGOTREE RELATIONSHIP AS A SIDDHA GURU HE BELIEVES HE IS AN ENLIGHTENED BEING WITH THE POWER TO AWAKEN OTHERS HIS STUDENTS CALL HIM BABA HE CALLS THEM HIS BABIES THEY INCLUDE A BELGIAN ASTROLOGER AND AN ENTIRE WESTCHESTER FAMILY A PSYCHOLOGIST HER PSYCHIATRIST HUSBAND AND THEIR TWO COLLEGESTUDENT CHILDREN ROMEO JULIET IS THE CREATION OF BABA AND HIS BABIES THE DISCIPLES' TASKS INCLUDED RECRUITING AND CARING FOR THE CATS WHOSE 24 LITTER PANS WERE CHANGED DAILY AS WELL AS FINDING THEM GOOD HOMES WHEN THE FILMING WAS COMPLETED THE PROJECT TOOK TWO YEARS AND INVOLVED TRAVEL TO LOCATIONS IN ITALY BELGIUM AND NEW YORK BECAUSE THE CATS WERE NEVER FORCED TO PERFORM THE CAMERAS MIGHT ROLL FOR 20 MINUTES WHILE THE CREW AWAITED FELINE INSPIRATION SO 400 HOURS OF VIDEO FOOTAGE WAS SHOT CREATING A MONUMENTAL EDITING TASK THIS LABOR OF LOVE WAS THE WORK OF NOVICES UNDER THE CAREFUL SUPERVISION OF THEIR FILMMAKERGURU ONLY THREE OF THE TECHNICAL PEOPLE HAD ANY FILMMAKING EXPERIENCE WHATEVER NONE OF THE CAMERAMEN HAD EVER HELD CAMERAS BEFORE THE EDITOR WAS A MOONLIGHTING PHYSICIAN THE UNLIKELY RESULT OF THEIR EFFORTS IS A SLICK TWOHOURLONG COMMERCIAL FOR SPIRITUALITY THAT DOES EVERYTHING BUT CURL UP ON YOUR LAP AND PURR DRAMATIC IMAGES ABOUND FIREWORKS FLASH AGAINST THE BROOKLYN BRIDGE GONDOLAS GLIDE ALONG THE MOSSY CANALS OF VENICE A SINGLE BLACK CAT STRIDES ACROSS AN ANCIENT STONE COURTYARD IN VERONA A DEAD PIGEON LIES ON A DISCARDED RAINDRENCHED CIRCUS POSTER THE IDEA IS TO SATISFY THE SENSES IN ORDER TO TRANSCEND THEM TO ENGAGE NOT THE MIND BUT THE SOUL THE FELINES' INHERENT MYSTIQUE AND THEIR DETACHED REGAL SELFHONORING MANNER EVOKE NATURALLY THE PEACE STATE REACHED IN MEDITATION MR ACOSTA EXPLAINS IN THE TRADITION OF THAT EARLIER REWORKING OF SHAKESPEARE'S ROMEO AND JULIET WEST SIDE STORY MR ACOSTA'S SCENARIO TELLS OF THE RIVALRY BETWEEN NATIVE NEW YORKERS AND NEWCOMERS TO THE CITY INSTEAD OF THE SHARKS AND THE JETS HERE THE FEUDING FACTIONS ARE OLD AND NEW WORLD CATS THE FILM OPENS IN VENICE WHERE BRITISH ACTOR JOHN HURT THE ONLY HUMAN IN THE CAST APPEARS AS LA DAME AUX CHATS AN ECCENTRIC BAG LADY WHO LIVES ON A HOUSEBOAT CALLED FELLINI WITH HER PET RAT CHABROL WHEN THE LOCAL CATS ARE THREATENED WITH EXTINCTION LA DAME SAVES JULIET AND HER FAMILY BY HELPING THEM STOW AWAY ON A FREIGHTER BOUND FOR NEW YORK AT THE CONEY ISLAND AMUSEMENT PARK THE IMMIGRANT JULIET A DAZZLING WHITE TURKISH ANGORA MEETS ROMEO A LONGHAIRED GRAY NEW YORK CITY STREET CAT NO WONDER HE FALLS FOR THIS LUSCIOUS CREATURE WHO IS AS VOLUPTUOUS AS MARILYN MONROE IF THIS IS REINCARNATION THE TIMING IS EXCELLENT WITH A CAT IN THE WHITE HOUSE PERHAPS THE COUNTRY IS READY FOR A FELINE LASSIE OR RIN TIN TIN JULIET A STRAY DISCOVERED IN A BRUSSELS POUND MAY WELL HAVE WHAT IT TAKES TO BE THE FIRST STAR OF THE SOCKS CLINTON ERA RUMOR HAS IT SHE SLEPT WITH THE DIRECTOR HER FILM PREMIERED IN BRUSSELS AT THE PALAIS DES BEAUX ARTS LAST SUMMER ACCOMPANIED BY A LIVE SYMPHONY ORCHESTRA SEVERAL SCREENINGS WITH SOUNDTRACK TOOK PLACE RECENTLY IN LOS ANGELES AND AN EXCERPT WAS SHOWN IN NEW YORK AT A BENEFIT AT THE WHITNEY MUSEUM OF AMERICAN ART EARLIER THIS YEAR ROMEO JULIET IS PROBABLY BEST SEEN IN CONCERT MR ACOSTA IS CONTEMPLATING SUCH PERFORMANCES AT LA SCALA THE SYDNEY OPERA HOUSE AND LINCOLN CENTER IF HE CAN FIND THE NECESSARY FINANCING DESPITE THE MUSIC ROMEO JULIET TENDS TO PUT AUDIENCES TO SLEEP THIS DOESN'T BOTHER MR ACOSTA A BIT PEOPLE THINK THEY GET SLEEPY BUT THAT'S NOT IT HE SAYS WHAT IS HAPPENING ACTUALLY IS THAT THE SHAKTI OR DIVINE ENERGY THAT WENT INTO ITS CREATION IS TRANSMITTED THROUGH THE FILM THE SHAKTI IS IMPARTED WHETHER YOU KNOW IT OR NOT SOME PEOPLE ARE REPULSED BY IT THEY RUN OUT OF THE THEATER AND GO INTO WEEPING FITS AND HAVE NO IDEA WHY MR ACOSTA DOESN'T EXPECT HIS FILM TO GROSS MILLIONS BUT HE DOES EXPECT IT TO LAST LONGTERM IS WHAT YOGA IS ALL ABOUT FAME AND SUCCESS ARE NOT INTERESTING TO ME OR TO MY BABIES WE WANT TO SHARE THIS LOVE AND BRING OTHER PEOPLE TO THIS EXPERIENCE MS GINGOLD IS A SHORTHAIRED FREELANCE WRITER IN LOS ANGELES 9303100142 930310 INTERNATIONAL SPAIN'S REPSOL RAISES DIVIDEND MADRID SPANISH OIL COMPANY REPSOL SA SAID IT WILL PAY A TOTAL DIVIDEND OF 104 PESETAS 88 CENTS A SHARE FOR 1992 A 5 INCREASE FROM THE 1991 DIVIDEND REPSOL PAID OUT A 46PESETA INTERIM DIVIDEND IN JANUARY WHICH WAS 45 HIGHER THAN THE 1991 INTERIM DIVIDEND THE COMPANY SAID THE TOTAL DIVIDEND WILL BE PROPOSED BY THE BOARD AT THE GENERAL SHAREHOLDERS MEETING IN JUNE REPSOL'S 1992 CONSOLIDATED PROFIT ROSE 18 TO 7143 BILLION PESETAS 6054 MILLION WHILE CONSOLIDATED CASH FLOW ROSE 12 TO 17196 BILLION PESETAS THE STATECONTROLLED COMPANY DIDN'T PROVIDE 1991 FIGURES 9303100141 930310 SEAGULL ENERGY GAS WELL HOUSTON SEAGULL ENERGY CORP SAID IT DISCOVERED NATURAL GAS OFFSHORE IN THE GULF OF MEXICO THE WELL DRILLED IN BLOCK 255 IN 25 FEET OF WATER TEST FLOWED A COMBINED RATE OF 157 MILLION CUBIC FEET OF GAS FROM TWO PRODUCING ZONES THE TWO ZONES WERE TESTED ON 20/64INCH AND 18/64INCH OPENINGS A SEAGULL UNIT IS THE OPERATOR WITH A 50 WORKING INTEREST IN THE DISCOVERY LOCATED ON SOUTH MARSH ISLAND ABOUT 53 MILES SOUTHWEST OF MORGAN CITY LA OTHER PARTNERS EACH WITH 25 INTEREST ARE UNITS OF ASHLAND OIL INC AND EQUITABLE RESOURCES INC 9303100140 930310 BUSINESS BRIEF HEINZ CUTS EARNINGS ESTIMATE FOR YEAR NET ROSE 41 IN FISCAL THIRD QUARTER PITTSBURGH HJ HEINZ CO TRIMMED ITS OFTENSTATED YEAREND EARNINGS FORECAST OF 260 A SHARE BY 10 CENTS CITING TROUBLESOME FOREIGN CURRENCY FLUCTUATIONS AND WEATHERRELATED ATTENDANCE PROBLEMS AT WEIGHT WATCHERS MEETINGS THE LOWERED FORECAST CAME AS THE COMPANY ANNOUNCED NET INCOME FOR THE FISCAL THIRD QUARTER ENDED JAN 27 OF 1623 MILLION OR 62 CENTS A SHARE ON SALES OF 177 BILLION NET WAS UP 41 FROM LAST YEAR WHEN HEINZ REPORTED THIRDQUARTER PROFIT OF 1153 MILLION OR 43 CENTS A SHARE SALES ROSE 89 FROM 162 BILLION A YEAR EARLIER IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE HEINZ SHARES WERE DOWN 2125 TO 42375 SOME ANALYSTS HAVE BEEN LOWERING THEIR ESTIMATES AND HAD EXPECTED HEINZ TO BACK OFF OF ITS FORECAST EITHER YESTERDAY OR LATER THIS MONTH WHEN THE COMPANY'S OUTSPOKEN CHAIRMAN ANTHONY JF O'REILLY ADDRESSES ANALYSTS THE NEW 250ASHARE FORECAST COMPARES WITH EARNINGS LAST YEAR OF 240 A SHARE BUT SOME ANALYSTS NOTE THAT FIGURE WAS COMPOSED OF 195 A SHARE IN OPERATING EARNINGS AND 45 CENTS A SHARE OF NET EXTRAORDINARY GAINS PERSHARE EARNINGS FOR THE FOURTH QUARTER WHICH ENDS APRIL 30 NOW ARE EXPECTED TO GROW ABOUT 30 WHICH MEANS 73 CENTS A SHARE IN THE YEARAGO FOURTH QUARTER THE COMPANY POSTED NET INCOME OF 1457 MILLION OR 56 CENTS A SHARE HEINZ SAID THE THIRD QUARTER'S INCREASE IN PERSHARE EARNINGS CAME FROM INCREASED SALES THE RECENT ACQUISITION OF NEW ZEALAND'S WATTIE'S LTD BENEFITS FROM LAST YEAR'S RESTRUCTURING COSTS AND A LOWER EFFECTIVE TAX RATE THE COMPANY CITED HIGHER SALES OF BABY FOOD WEIGHT WATCHERS FROZEN FOODS AND PET FOOD AS WELL AS SALES OF OREIDA POTATO PRODUCTS AND KETCHUP FOR FOODSERVICE CUSTOMERS ANALYSTS SAW HEINZ'S REDUCED EARNINGS ESTIMATE AS A SIGN THAT THE PITTSBURGHBASED FOOD COMPANY IS FINALLY COMING TO GRIPS WITH ITS FINANCIAL CONDITION WHICH THEY SAY IS CONSIDERABLY LESS ROBUST THAN IN THE 1980S WHILE HEINZ SAID BAD WEATHER HURT WEIGHT WATCHERS DIET CLASSES SOME ANALYSTS SAY WEIGHT WATCHERS ALSO WAS HURT BY A RECENT PRICE INCREASE POSSIBLY NOT A WISE MOVE IN THE CURRENT COMPETITIVE ENVIRONMENT HEINZ ALSO RAISED BABY FOOD AND SOUP PRICES RECENTLY 9303100139 930310 YOU COULD CALL HIM STARRYEYED BUT HIS SHOWS ARE ALL SPECTACLES BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IT COMES TO CELEBRITY MEMORABILIA AROL AUGSBURGER IS A VISIONARY WELL ACTUALLY HE'S AN OPTOMETRIST BUT IF HISTORY UPHOLDS HIS VISION HE COULD GAIN MORE FAME AS THE GUY WHO SAVED SHARI LEWIS'S GLASSES FOR POSTERITY THE PUPPETEER'S LENSES ARE FAR FROM BEING DR AUGSBURGER'S ONLY TROPHY AMONG THE NOTABLES WHO HAVE DONATED SPARE SPECS TO HIS EYEOPENING CELEBRITY EYEWEAR COLLECTION AT OHIO STATE UNIVERSITY IN COLUMBUS ACTOR ED BEGLEY JR COMEDIAN RED SKELTON AND POPCORN MOGUL ORVILLE REDENBACHER IF THOSE NAMES DON'T RAISE EYEBROWS TRY THESE FOR SIZE NOVELIST STEPHEN KING ACTRESS SOPHIA LOREN GOLFER JACK NICKLAUS AND FORMER PRESIDENT FORD OR HOW ABOUT NOBEL LAUREATE MILTON FRIEDMAN OR THAT LUSCIOUS MUPPET MISS PIGGY DR AUGSBURGER HAS ASSEMBLED SPECTACULAR PROOF OF THE PREVALENCE OF POOR SIGHT AMONG POPCULTURE PERSONALITIES HIS PROFESSED GOAL IN THIS SAVE YOUR VISION WEEK IS TO CALL ATTENTION TO HOW SUCCESSFUL PEOPLE HAVE ACHIEVED SUCCESS THROUGH CLEAR VISION DR AUGSBURGER BECAME CURATOR OF OHIO STATE'S OPTOMETRY MUSEUM IN THE MID1970S WHEN IT WAS HOME TO A WELLREGARDED IF DULL COLLECTION OF OLD OPTICAL INSTRUMENTS BUT IN 1983 HE RAISED THE MUSEUM'S SIGHTS ASKING 100 LUMINARIES TO BEQUEATH THEIR OLD EYEGLASSES SINCE THEN DR AUGSBURGER HAS KEPT HIS EYES PEELED FOR FAMOUS LENS WEARERS CLIPPING MAGAZINE PICTURES AND SCRIBBLING NOTES AS HE WATCHES TELEVISION AMONG HIS MOST FAMOUS FRAMES ARE THOSE OF FORMER PRESIDENT BUSH WARPED FROM BEING WORN IN THE SAUNA AND DEAN MARTIN WITH MANGLED EARPIECES HE USED TO CHEW OR SOMEONE ELSE USED TO CHEW ON THE ENDS EXPLAINS THE OPTOMETRIST AT LEAST THEY LOOK LIKE HUMAN TEETH MARKS RIGHT NOW HE HAS HIS EYES ON PRESIDENT CLINTON'S READING GLASSES ALONG WITH THE SPECTACLES OF TALKSHOW HOST ARSENIO HALL AND TYCOON DONALD TRUMP UNFORTUNATELY HE HASN'T HAD TIME TO WRITE TO THEM MINDFUL OF SECURITY THE CURATOR KEEPS HIS GLASSES BEHIND GLASS BUT HE'S KIND TO THOSE WHO COME TO GOGGLE IF SOMEONE REALLY NEEDS TO TOUCH PAUL ANKA'S GLASSES WE'LL LET THEM DO THAT HE SAYS IN KEEPING WITH MODERN OPTICAL ADVANCES HE HAS ALSO ESTABLISHED A SPECIAL SECTION FOR CELEBRITIES' CONTACT LENSES BUT SOMEHOW HE LAMENTS THEY JUST DON'T DISPLAY AS WELL 9303100138 930310 SMALLSTOCK FUND AT STRONG TO CLOSE DOORS ON NEW CASH BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL ANOTHER HOT SMALLSTOCK MUTUAL FUND IS GOING TO START TURNING AWAY CASH STRONG COMMON STOCK FUND PLANS TO CLOSE ITS DOORS TO NEW INVESTORS AFTER MARCH 19 EXECUTIVES AT STRONG FUNDS SAID MONEY IS POURING INTO THE FUND AT A RATE OF 4 MILLION TO 5 MILLION A DAY CAUSING THE FUND TO MORE THAN DOUBLE IN SIZE TO 390 MILLION FROM 179 MILLION SINCE THE END OF 1992 WE CAN'T FIND ENOUGH STOCKS TO SOAK UP ALL THAT MONEY SAID RICHARD WEISS COMANAGER OF THE FUND SMALL INVESTORS HAVE SHOWN A RAVENOUS APPETITE FOR MUTUAL FUNDS ESPECIALLY THOSE INVESTING IN STOCKS OF SMALL COMPANIES AT LEAST FIVE STOCK FUNDS HAVE ALREADY CLOSED OR ANNOUNCED PLANS TO CLOSE THIS YEAR INCLUDING FIDELITY LOWPRICED STOCK FUND WHICH IN A MATTER OF MONTHS HAD BALLOONED INTO THE LARGEST SMALLSTOCK FUND IN THE COUNTRY OTHER FUND CLOSINGS ARE EXPECTED IN COMING MONTHS BIG INFLOWS OF CASH CAN DISRUPT FUNDS INVESTING IN SMALL COMPANY SHARES BECAUSE ONLY A SMALL AMOUNT OF MONEY CAN BE INVESTED IN ANY PARTICULAR STOCK FUNDS OFTEN AVOID BUYING MORE THAN 10 OF THE STOCK OF ANY PARTICULAR ISSUER BECAUSE IT BECOMES HARD TO SELL THE STOCK WITHOUT PUSHING THE PRICE DOWN HURTING THE FUND'S PERFORMANCE MR WEISS AND COMANAGER CARLENE MURPHY HAVE STEERED STRONG COMMON STOCK FUND TO A MARKETBEATING TOTAL RETURN OF 1023 INCLUDING REINVESTED DIVIDENDS SINCE ITS INCEPTION ON DEC 31 1989 PRIOR TO COMING TO STRONG FUNDS THE TWO MANAGERS RAN STEINROE SPECIAL FUND WHERE THEY HAD A GAIN OF 3376 OVER NINE YEARS COMPARED WITH THE 2031 RETURN ON AVERAGE FOR STOCK FUNDS IN THAT PERIOD THE MANAGERS SAID THAT THEY WEREN'T CLOSING THE FUND OUT OF CONCERN ABOUT THE LEVEL OF THE STOCK MARKET THAT HAS NOTHING TO DO WITH THE DECISION ACCORDING TO MS MURPHY THE TWO MANAGERS ALSO RUN STRONG OPPORTUNITY FUND WHICH INVESTS IN MIDSIZED COMPANIES AND WHICH IS STILL OPEN TO NEW INVESTORS THAT FUND WITH 237 MILLION IN ASSETS HAD A 174 GAIN LAST YEAR LESS THAN THE 208 GAIN OF THE SMALLSTOCK FUND BUT WELL AHEAD OF THE 76 RETURN ON THE STANDARD & POOR'S 500 INDEX WE'RE FINDING A LOT OF GOOD IDEAS FOR THE MIDSIZED STOCK FUND MS MURPHY SAID THE COMPANIES ARE MORE STABLE THE STOCKS ARE MORE LIQUID AND THE GROWTH RATES ARE AS GOOD AS THE COMPANIES IN THE SMALLSTOCK FUND SHE SAID THE MONEY FLOWS INTO THE OPPORTUNITY FUND ARE ACCELERATING SAID RICHARD S STRONG CHAIRMAN OF STRONG FUNDS THAT'LL BE THE NEXT ONE TO CLOSE 9303100136 930310 LAW CLIFFORD AND ALTMAN MAY BE FACING EXPANDED US CHARGES IN BCCI CASE BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT PLANS TO EXPAND ITS INDICTMENT AGAINST WASHINGTON LAWYERS CLARK CLIFFORD AND ROBERT ALTMAN BECAUSE OF EVIDENCE PROVIDED BY AN UNIDENTIFIED WITNESS WHO RECENTLY ARRIVED IN THE US JUDGE JOYCE HENS GREEN APPEARED ANGRY HOWEVER AND SAID SHE WAS INCREDULOUS THAT THE GOVERNMENT PLANNED TO BRING A SUPERSEDING INDICTMENT BY APRIL 15 JUST WEEKS BEFORE THE JUNE 1 STARTING DATE FOR THE FEDERAL TRIAL SHE SAID SHE WILL HOLD A HEARING NEXT WEDNESDAY TO REVIEW THE SITUATION ROBERT BENNETT DEFENSE COUNSEL FOR MESSRS CLIFFORD AND ALTMAN ALSO SAID HE WAS SURPRISED AND ANGERED BY THE JUSTICE DEPARTMENT'S MOVE HE SAID HIS CLIENTS HAD A RIGHT TO KNOW WHAT CHARGES THEY FACED AND HE QUESTIONED WHETHER THERE WOULD BE ENOUGH TIME TO PREPARE A DEFENSE THE MEN HAVE BEEN INDICTED BY FEDERAL AND NEW YORK STATE GRAND JURIES ON CHARGES RELATING TO THEIR WORK FOR BCCI HOLDINGS LUXEMBOURG SA OR BANK OF CREDIT & COMMERCE INTERNATIONAL THE TWO MEN HAVE DENIED ALL CHARGES LAURENCE URGENSON DEPUTY ASSISTANT ATTORNEY GENERAL IN THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION SAID THAT THERE HAD PREVIOUSLY BEEN DEBATE AMONG GOVERNMENT PROSECUTORS ABOUT THE EXTENT OF MR CLIFFORD AND MR ALTMAN'S KNOWLEDGE OF BCCI'S ILLEGAL SCHEMES IN THE US HE INDICATED THAT THE SUPERSEDING INDICTMENT WOULD ALLEGE THAT THE MEN HAD KNOWLEDGE AND INTENT RELATING TO BCCI'S ACTIONS IN THE US SEVERAL YEARS EARLIER THAN THE CURRENT FEDERAL INDICTMENT ALLEGED THE GOVERNMENT DECLINED TO IDENTIFY THE WITNESS MR BENNETT THE DEFENSE COUNSEL HAD REQUESTED YESTERDAY'S HEARING TO PRESS FOR A POSTPONEMENT OF THE FEDERAL CASE TO JAN 1 1994 JUDGE GREEN HOWEVER DENIED THE MOTION MR ALTMAN IS SET TO FACE THE STATE CHARGES ALONE THE TRIAL BEGINS MONDAY AS MR CLIFFORD IS SCHEDULED TO HAVE HEART BYPASS SURGERY MARCH 22 9303100134 930310 WHO'S NEWS GREEN MOUNTAIN POWER CORP GREEN MOUNTAIN POWER CORP SOUTH BURLINGTON VT EUCLID A IRVING A PARTNER IN THE LAW OFFICE OF PAUL HASTINGS JANOFSKY & WALKER WAS NAMED A DIRECTOR OF THIS UTILITY MR IRVING 40 YEARS OLD SUCCEEDS RALPH S STILLMAN WHO DIED LAST MONTH 9303100133 930310 MARKETING & MEDIA DOW JONES NAMES JAMES P MEAGHER EDITOR OF BARRON'S NEW YORK DOW JONES & CO SAID JAMES P MEAGHER MANAGING EDITOR OF BARRON'S HAS BEEN APPOINTED EDITOR OF THE BUSINESS AND FINANCIAL WEEKLY MR MEAGHER SUCCEEDS ALAN ABELSON EDITOR OF BARRON'S SINCE DECEMBER 1981 MR ABELSON WILL CONTINUE TO WRITE HIS WEEKLY COLUMN UP & DOWN WALL STREET EDWIN A FINN JR UNTIL RECENTLY THE EDITOR OF AMERICAN BANKER WILL BECOME MANAGING EDITOR OF BARRON'S BOTH APPOINTMENTS ARE EFFECTIVE MARCH 29 DOW JONES IN LATE DECEMBER ANNOUNCED THAT IT WOULD NAME A NEW EDITOR FOR BARRON'S AS PART OF A PLAN TO REDESIGN THE 71YEAROLD PUBLICATION JIM AND ED WILL MAKE A STRONG MANAGEMENT TEAM FOR BARRON'S IN THE YEARS AHEAD PETER R KANN CHAIRMAN AND CHIEF EXECUTIVE OF DOW JONES AND JAMES H OTTAWAY JR SENIOR VICE PRESIDENT SAID IN A JOINT STATEMENT MR MEAGHER 57 YEARS OLD HAS BEEN MANAGING EDITOR OF BARRON'S SINCE MAY 1992 HE JOINED DOW JONES IN 1961 FROM 1962 TO 1977 HE WAS A WRITER AND EDITOR FOR THE NATIONAL OBSERVER A WEEKLY NEWSPAPER PUBLISHED BY DOW JONES MR MEAGHER WAS ASSISTANT MANAGING EDITOR OF THAT PAPER WHEN IT CEASED PUBLICATION IN 1977 HE THEN JOINED BARRON'S AS A SPECIAL WRITER BECOMING A NEWS EDITOR IN 1979 ASSISTANT MANAGING EDITOR IN 1983 AND DEPUTY EDITOR IN 1986 MR FINN 38 JOINED THE WALL STREET JOURNAL IN 1980 AND WAS AN EDITOR ON THE NEWSPAPER'S FOREIGN DESK UNTIL 1984 WHEN HE BECAME A REPORTER IN THE DALLAS NEWS BUREAU IN 1986 MR FINN JOINED FORBES MAGAZINE AS A SENIOR EDITOR AND BECAME AN ASSISTANT MANAGING EDITOR IN 1989 IN OCTOBER 1990 HE WAS NAMED EDITOR OF AMERICAN BANKER A POST HE HELD UNTIL HE RESIGNED IN DECEMBER 1992 MR FINN RESIGNED OVER PHILOSOPHICAL DIFFERENCES WITH THOMSON FINANCIAL SERVICES INC BOSTON OWNER OF AMERICAN BANKER MR ABELSON WHO IS 67 SAID HE IS DELIGHTED WITH MR MEAGHER'S APPOINTMENT PURE AND SIMPLE THERE ISN'T ANYONE BY TALENT TEMPERAMENT AND EXPERIENCE MORE SUITED TO TAKE OVER THE MAGAZINE AND GUIDE IT THROUGH THE EXCITING AND EXACTING PROCESS OF REDESIGN AND THERE COULDN'T BE A BETTER CHOICE TO ENSURE THAT THE SPECIAL QUALITY AND CHARACTER OF THE PUBLICATION WILL BE MAINTAINED IN ADDITION TO BARRON'S WHICH HAS A CIRCULATION OF 245050 DOW JONES PUBLISHES THE WALL STREET JOURNAL AND OTHER PUBLICATIONS ELECTRONIC BUSINESS INFORMATION SERVICES AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS 9303100132 930310 DOWN THE UP ESCALATOR WHY SOME WORKERS ARE FALLING BEHIND AGE OF ANGST WORKPLACE REVOLUTION BOOSTS PRODUCTIVITY AT COST OF JOB SECURITY GLOBALIZATION AUTOMATION AND SHRINKING INDUSTRIES SPREAD THE FEAR OF FIRING THE FADING ERA OF BIG DADDY BY G PASCAL ZACHARY AND BOB ORTEGA STAFF REPORTERS OF THE WALL STREET JOURNAL THE RECESSION ENDED MORE THAN A YEAR AGO AFTER AN AGONIZINGLY SLOW START AN ECONOMIC EXPANSION NOW SEEMS FIRMLY UNDER WAY AND YET ANGST PERVADES THE AMERICAN WORKPLACE TO SEE WHY CONSIDER THE CASE OF MICHAEL AND RHONDA RAWLINS A YEAR AGO THEY WERE AMONG THE PEOPLE WHOM ROBERT REICH PRESIDENT CLINTON'S LABOR SECRETARY DEPICTED AS WINNERS IN HIS OFTQUOTED VISION OF THE WORKPLACE OF THE FUTURE BETWEEN THEM THEY EARNED 75000 TO 80000 ANNUALLY FROM THEIR HIGHSKILLED JOBS AT AETNA LIFE & CASUALTY CO HE AS A COMPUTERSYSTEM ANALYST AND SHE AS A GRAPHIC DESIGNER BUT LAST YEAR AETNA DECIDED TO REENGINEER BY CUTTING 2600 JOBS INCLUDING THEIRS IN MANY CASES CONTRACTING OUT THE WORK EVER SINCE THE TWO HAVE LED A PRECARIOUS LIFE EARNING A LITTLE MONEY BY DOING CONTRACT WORK WITHOUT BENEFITS FOR AETNA WHILE FRUITLESSLY LOOKING FOR FULLTIME JOBS AS GOOD AS THOSE THEY HAD IT CHANGES YOUR WORLD YOUR SENSE OF SECURITY SAYS MRS RAWLINS WHO JUST PASSED HER FIRST ANNIVERSARY OF UNEMPLOYMENT FOLLOWING 13 YEARS AT THE HARTFORD CONN INSURER PEOPLE USED TO FEEL A LOT OF LOYALTY AND SECURITY THERE IT IS JUST NOT THAT WAY ANYMORE MILLIONS OF AMERICAN WORKERS ARE EMBARKING ON A JOURNEY OF INSECURITY AND PROFESSIONAL AND HIGHLY SKILLED EMPLOYEES ARE NOT EXEMPT ALL ARE AFFECTED BY THE UNPRECEDENTED CONFLUENCE OF FOUR TRENDS GLOBAL COMPETITION IS TRANSFERRING BOTH HIGH AND LOWPAYING JOBS OVERSEAS AUTOMATION WHICH HAS BOOSTED PRODUCTIVITY BUT ERODED THE MANUFACTURING JOB BASE FOR DECADES NOW IS PENETRATING THE SERVICE SECTOR MAJOR INDUSTRIES SUCH AS BANKING CONSTRUCTION AEROSPACE AND DEFENSE ARE SHRINKING PERHAPS PERMANENTLY AND COSTCONSCIOUS COMPANIES ARE TURNING TO A CONTINGENT WORK FORCE PARTTIMERS TEMPORARIES CONTRACT LABOR TO AVOID SOARING FRINGE BENEFITS AND TO INCREASE PROFITS EVERY DAY HEADLINES OFFER NEW EVIDENCE OF THE AGE OF ANGST LAST FRIDAY THE FEBRUARY UNEMPLOYMENT FIGURES WERE RELEASED SHOWING A HUGE GAIN IN NEW JOBS A GAIN OWING ENTIRELY TO PARTTIME OR TEMPORARY POSITIONS GENERALLY PAYING LOW WAGES AND OFFERING FEW OR NO BENEFITS EARLIER THIS WEEK THE PENTAGON INDICATED JUST HOW PAINFUL THE PEACE DIVIDEND IS GOING TO BE ACKNOWLEDGING THAT UP TO 30 MAJOR BASES ARE SLATED FOR CLOSURE POTENTIALLY CREATING UP TO 100000 NEW JOBLESS IN CALIFORNIA ALONE MOREOVER IN RECENT MONTHS GENERAL MOTORS CORP INTERNATIONAL BUSINESS MACHINES CORP BOEING CO AND MANY OTHER COMPANIES HAVE ANNOUNCED BIG LAYOFFS WHILE SURVIVORS OFTEN FACE REDUCED HOURS AND BENEFITS THIS IS WELCOME NEWS IN SOME RESPECTS THE DISCIPLINE OF THE MARKETPLACE IS FORCING US COMPANIES TO WEED OUT EXCESS AND BOOST PRODUCTIVITY TO COMPETE IN A BRUTAL GLOBAL ECONOMY THE PRODUCTIVITY OF AMERICAN ADVANCED TECHNOLOGY AND SERVICE COMPANIES IS SO MUCH GREATER THAN THAT OF FOREIGN RIVALS THE US IS RUNNING CLOSE TO A 100 BILLION ANNUAL TRADE SURPLUS IN THOSE BUSINESS SECTORS THE TRENDS ALSO HAVEN'T STOPPED AND IN SOME WAYS HAVE AIDED A SURGE IN UPWARD MOBILITY AMONG PROFESSIONALS ENTREPRENEURS AND SKILLED TECHNICIANS THE 1980S CREATED SEVEN MILLION NEWLY AFFLUENT HOUSEHOLDS WITH INCOME ABOVE 50000 A YEAR TWICE THE NUMBER OF NEWLY POOR HOUSEHOLDS BELOW 15000 A YEAR ACCORDING TO THE CENSUS BUREAU BUT ECONOMISTS ARE DIVIDED OVER WHETHER THE TRENDS WILL ADD UP TO WIDESPREAD DOWNWARD MOBILITY IN THE FUTURE AFTER ALL WAGE EROSION WAS ALSO A CHARACTERISTIC OF THE 1980S ESPECIALLY AMONG POORER AND LESSEDUCATED WORKERS THEY HAVE HAD TO SCRAMBLE TO REPLACE LOST INCOME BY WORKING AN AVERAGE OF TWO WEEKS LONGER EACH YEAR AND RELYING ON A HUGE INFLUX OF WORKING WIVES WITHOUT THESE FACTORS THE MEDIAN HOUSEHOLD INCOME WOULD HAVE FALLEN SHARPLY WITH THEM IT STILL STAGNATED MANY LABOR SPECIALISTS FEAR THAT THE FOUR HORSEMEN OF THE WORKPLACE GLOBAL COMPETITION TECHNOLOGY DOWNSIZING AND THE GROWTH OF THE CONTINGENT WORK FORCE WILL CAUSE WAGES TO CONTINUE TO FALL CREATING A NATION INCREASINGLY DIVIDED INTO HAVES AND HAVE NOTS OTHERS ARGUE THAT MORE OF THOSE WHO ARE EMPLOYED WILL COMMAND HIGHER WAGES BECAUSE OF HIGHER PRODUCTIVITY JUST YESTERDAY THE LABOR DEPARTMENT REPORTED THAT NONFARM BUSINESS PRODUCTIVITY ROSE A REVISED 28 IN 1992 THE LARGEST INCREASE SINCE A 31 GAIN IN 1972 DURING THE FOURTH QUARTER THE GAIN WAS EVEN HIGHER 48 BUT BOTH CAMPS ACKNOWLEDGE THAT WITH DOWNSIZING AND LAYOFFS CAPABLE OF STRIKING ANY COMPANY WITHOUT WARNING NO JOB IS SAFE AS THE CHAIRMEN OF IBM GM AND WESTINGHOUSE ELECTRIC CORP ALL RECENTLY DISCOVERED AS A RESULT LAST DECADE'S QUEST FOR QUICK KILLINGS HAS BEEN REPLACED BY A FEAR THESE DAYS OF SLIPPING DOWN THE UP ESCALATOR JUST AS THE SEARCH FOR SECURITY WORKED TO FRANKLIN D ROOSEVELT'S ADVANTAGE IN THE 1930S PRESIDENT CLINTON IS PLAYING TO THAT DESIRE WITH HIS CALLS FOR JOB RETRAINING AND A NATIONAL HEALTH POLICY STATISTICS DEPICTING STRESS ABOUND THE NUMBER OF ADULTS LIVING WITH THEIR PARENTS HAS DOUBLED TO 12 OF THE 25TO34 AGE GROUP FROM 6 IN 1960 ONLY 15 OF WORKERS DISPLACED IN THE LAST RECESSION EXPECT TO RETURN TO THEIR FORMER JOBS COMPARED WITH AN AVERAGE OF 44 IN FOUR PREVIOUS RECESSIONS ACCORDING TO AN ANALYSIS OF GOVERNMENT JOB DATA BY HARVARD ECONOMIST JAMES MEDOFF WHO REGARDS THE LOWER EXPECTATIONS AS REALISTIC TODAY PEOPLE WHO LOSE THEIR JOBS ARE HISTORY SAYS MR MEDOFF THE QUALITY OF NEW JOBS IS ERODING TOO IN 1988 ACCORDING TO MR MEDOFF'S ANALYSIS ONLY 38 OF ALL NEW JOBS OFFERED HEALTH BENEFITS COMPARED WITH 43 IN 1979 AND ONLY 15 OFFERED PENSION BENEFITS DOWN FROM 23 NO RELIEF IS IN SIGHT GLOBAL COMPETITION FOR JOBS FOR EXAMPLE WILL BECOME MORE INTENSE BECAUSE OF THE COLD WAR'S END AND CHINA'S MOVE TO A MARKET ECONOMY IT'S NOT WIDELY RECOGNIZED HOW ENORMOUS THIS EFFECT IS SAYS MILTON FRIEDMAN THE NOBEL PRIZEWINNING ECONOMIST YOU'VE GOT A BILLION PEOPLE IN CHINA WHO SUDDENLY ARE AVAILABLE FOR USE WITH CAPITAL YOU HAVE HALF A BILLION BEHIND THE FORMER IRON CURTAIN LATIN AMERICA STILL BECKONS WITH OR WITHOUT A FREETRADE PACT EMPLOYERS OF VEGETABLE PACKERS IN MEXICO FOR INSTANCE PAY WORKERS LESS FOR A DAY THAN THEY PAID US FOR AN HOUR SAYS YOLANDA NAVARRO LAID OFF TWO YEARS AGO AS A PACKER IN WATSONVILLE CALIF MS NAVARRO WHO EARNED 771 AN HOUR LOST HER JOB OF 20 YEARS AFTER HER EMPLOYER GREEN GIANT A UNIT OF PILLSBURY CO ITSELF A UNIT OF LONDONBASED GRAND METROPOLITAN PLC MOVED ITS OPERATIONS TO IRAPUATO MEXICO HER HUSBAND LAURO AND MORE THAN 300 OTHERS ALSO WERE LAID OFF THEY ARE AMONG 4000 PACKING WORKERS IN WATSONVILLE WHO HAVE LOST THEIR JOBS OVER THE PAST DECADE AS AREA PACKERS MOVED OUTSIDE THE COUNTRY ACCORDING TO THE TEAMSTERS LOCAL REPRESENTING THE WORKERS THE NAVARROS HAD BEEN ABLE TO BUY A 50000 HOME AND SUPPORT FIVE CHILDREN SINCE LOSING HER JOB MS NAVARRO HASN'T WORKED AND MR NAVARRO HAS WORKED ONLY SPORADICALLY THEY HAVE HAD TO RENT THEIR OWN HOUSE AND MOVE THEIR FAMILY INTO THE HOME OF MS NAVARRO'S MOTHER GREEN GIANT SAYS ITS MAIN MOTIVATION IN MOVING TO MEXICO WAS TO BE CLOSER TO EAST COAST MARKETS NOT TO SLASH LABOR COSTS WAGE COMPETITION FROM ABROAD DOESN'T HARM JUST BLUECOLLAR WORKERS US PROFESSIONALS ARE STARTING TO SEE JOB OPPORTUNITIES VANISH AS EMPLOYERS LOOK FOR ENGINEERS AND PROGRAMMERS IN IRELAND RUSSIA MALAYSIA INDIA AND SINGAPORE WHERE THERE ARE PLENTIFUL SURPLUSES OF WELLEDUCATED PROFESSIONALS HIGHLY SKILLED AND HIGHLY PAID JOBS ARE ALSO A MAJOR CASUALTY OF THE DOWNSIZING OF AMERICAN INDUSTRIES AND CORPORATIONS THE COUNTRY'S 500 LARGEST MANUFACTURERS HAVE SLASHED NEARLY FOUR MILLION JOBS SINCE 1982 ONE OF THEM PROCTER & GAMBLE CO CLOSED A DALLAS DETERGENT PLANT LAST JUNE PUTTING MARK BALL A 1665ANHOUR ELECTRICAL TECHNICIAN OUT OF WORK AFTER 18 YEARS MONTHS LATER I HAVEN'T FOUND ANYTHING THAT HAD THE BENEFITS AND PAY I WAS GETTING HE SAYS I HAVEN'T FOUND ANYTHING CLOSE THAT IS A COMPLAINT ECHOED BY DEFENSE WORKERS AND MILITARY PERSONNEL WHO STAND TO LOSE TWO MILLION TO 25 MILLION JOBS THIS DECADE PRODUCTION WORKERS IN THE AEROSPACE INDUSTRY ARE AMONG THE HIGHEST PAID BLUECOLLAR WORKERS IN THE US IN CALIFORNIA THEIR WEEKLY WAGES OF 650 TO 690 ARE 50 HIGHER THAN THE MEDIAN WAGE OF THE STATE'S FACTORY EMPLOYEES THANKS TO THE SOCALLED PEACE DIVIDEND ONE THIRD OF THEIR JOBS HAVE ALREADY VANISHED AND HUGE ADDITIONAL CUTS ARE IN THE OFFING ULTIMATELY THE PEACE DIVIDEND COULD HELP PRODUCE NEW NONDEFENSE JOBS BUT THAT OFFERS LITTLE COMFORT TO WAYNE AMACHER A 56YEAROLD WHO EARNED 77000 A YEAR AS AN ENGINEERING MANAGER FOR A SILICON VALLEY UNIT OF LITTON INDUSTRIES INC A BIG DEFENSE CONTRACTOR AFTER A LAYOFF HE LANDED AT A PRIVATE COMPANY ONLY TO GET LAID OFF AGAIN NOW HE EARNS 30 AN HOUR WORKING ON A RENEWABLE 10DAY CONTRACT ASSISTING THE PRESIDENT OF A SMALL ENGINEERING CONCERN I HOPE TO GET ON HERE FULLTIME SOON HE SAYS IF ONLY FOR THE BENEFITS MR AMACHER WHOSE WIFE IS UNEMPLOYED PAYS 577 A MONTH FOR HEALTH INSURANCE FORMER STAFF SGT TIM WINSTEAD A 28YEAROLD WHO WORKED AT MISSILESILO SITES FELT PRESSURED TO RESIGN FROM THE AIR FORCE LAST SEPTEMBER BEFORE FUTURE BUDGET CUTS TRIMMED BOTH HIS JOB AND THE SEVERANCE PAY OFFERED THOSE LEAVING NOW A NINEYEAR VETERAN WHO IS MARRIED WITH TWO CHILDREN HE EARNED 24000 A YEAR WITH ANOTHER 10000 WORTH OF HOUSING HEALTH AND SHOPPING SUBSIDIES YOU DON'T HAVE AN INKLING OF WHAT YOU'RE LOSING UNTIL YOU GET OUT SAYS MR WINSTEAD AS A CONSTRUCTION LABORER IN VANCOUVER WASH HE RECEIVES BARELY HALF OF HIS MILITARY PAY AND BENEFITS AND LIVES IN CONSTANT FEAR OF LAYOFF HE MISSES THE SECURITY OF BIG DADDY AS HE CALLS THE AIR FORCE FOR MOST WORKERS BIG DADDY HAS ALWAYS BEEN THE BIG CORPORATIONS THAT PROVIDED HIGHPAYING JOBS A LAVISH MENU OF BENEFITS AND JOB SECURITY NOW EITHER FROM A HUNGER FOR GREATER PROFITS OR A NEED TO CUT COSTS THOSE SAME CORPORATIONS ARE SEEKING ALTERNATIVES TO A FULLTIME FULLY VESTED WORK FORCE LAST MONTH FOR INSTANCE BANKAMERICA CORP'S 28000 CALIFORNIA BRANCH EMPLOYEES GOT SOME UNSETTLING NEWS A CONFIDENTIAL MEMO LEAKED TO THE LOCAL PRESS REVEALED THAT ALONG WITH CUTTING THOUSANDS OF JOBS THE NATION'S SECONDLARGEST BANK PLANNED TO TURN 1200 MORE INTO PARTTIME POSITIONS TRIMMING HEALTH AND OTHER BENEFITS SOON ONLY 19 OF THE BANK'S EMPLOYEES WILL WORK FULLTIME NEARLY SIX OUT OF 10 WILL WORK FEWER THAN 20 HOURS A WEEK AND RECEIVE NO BENEFITS TEN YEARS AGO THE BANK HAD MOSTLY FULLTIME EMPLOYEES BANKAMERICA REPORTED RECORD PROFITS IN EACH OF THE PAST TWO YEARS IT SAYS IT IS TAKING THESE STEPS TO IMPROVE PROFITS EVEN MORE REDUCE OVERLAP AND INCREASE FLEXIBILITY IN THE WAKE OF A MERGER WITH SECURITY PACIFIC CORP INEVITABLY THOUGH THE MOVES WILL TRANSFORM MIDDLECLASS TELLERS INTO WORKING POOR BY TURNING FULLTIME WORK INTO MARGINAL JOBS THAT BARELY KEEP FAMILIES AFLOAT ASSERTS KAREN NUSSBAUM EXECUTIVE DIRECTOR OF NINE TO FIVE A LABOR ADVOCACY GROUP TECH AETNA'S DECISION TO ELIMINATE 2600 JOBS WAS PART OF A STRATEGY SIMPLY DESIGNED TO REDUCE COSTS AND IMPROVE PROFITABILITY THE INSURER SAYS THE COMPANY DECLINES TO COMMENT ON THE SITUATION OF MICHAEL RAWLINS THE COMPUTERSYSTEMS ANALYST AND HIS WIFE RHONDA THE GRAPHIC DESIGNER BUT MRS RAWLINS SAYS AETNA'S MOTIVES ARE SIMPLE THEY DIDN'T WANT TO PAY OUR PENSION AND BENEFITS DISCOURAGING FOR MANY IS THE REALITY OF JOBS MADE OBSOLETE BY ADVANCING TECHNOLOGY NEW TECHNOLOGY ENABLED US PAPERMAKERS TO INCREASE OUTPUT BY 30 BETWEEN 1980 AND 1990 WHILE REDUCING LABOR ROLLS BY 4 TO 245000 WORKERS NOW THAT TREND IS EXTENDING INTO SERVICE INDUSTRIES AND AFFECTING SKILLED WORKERS SUCH AS COMPUTER DESIGNERS AND PROGRAMMERS CAROLYN KOENIG AN ELECTRICAL ENGINEER IN SILICON VALLEY IS IN DEMAND FOR HER ABILITY TO CONCEIVE MATHEMATICAL FORMULAS ESSENTIAL TO DEVELOPING CERTAIN KINDS OF SOFTWARE BUT SHE SEES THE WRITING ON THE WALL THE NEW GENERATION OF COMPUTERS MAKES IT POSSIBLE FOR HER TO DO IN ONE HOUR WHAT FORMERLY TOOK EIGHT FOR YEARS I THOUGHT AUTOMATION WOULD ONLY AFFECT MANUAL WORK SHE SAYS NOW I SEE IT AFFECTS KNOWLEDGE WORKERS AS WELL MOST AT RISK IN THE SERVICE SECTOR ARE THE 167 MILLION BACKOFFICE EMPLOYEES WHO PROCESS ORDERS AND TRACK INVENTORIES JOBS INCREASINGLY COMPUTERIZED THERE'S A LOT OF CONSOLIDATION GOING ON IN SERVICE INDUSTRIES BANKING AIRLINES RETAIL THAT UP UNTIL NOW HAD NOT BEEN TERRIBLY INTERESTED IN PRODUCTIVITY SAYS STEVEN ROACH SENIOR ECONOMIST AT MORGAN STANLEY GROUP INC THE AUTOMATION OF ROUTINE TASKS THREATENS TO PUSH THE UNEMPLOYMENT RATE TO AS HIGH AS 10 BY THE END OF THE DECADE SAYS A GARY SHILLING AN ECONOMIC CONSULTANT IN SPRINGFIELD NJ HE ADDS THAT THE LOSS OF SERVICE JOBS TO AUTOMATION WILL LARGELY UNDERMINE GAINS FROM A BETTER EDUCATED WORK FORCE YOU'RE GOING TO HAVE A LOT OF COLLEGE GRADUATES TAKING JOBS FOR WHICH THEY ARE OVERQUALIFIED HE SAYS FEW ARE SAYING THE GREAT AMERICAN JOB CREATION MACHINE HAS STALLED FOREVER SERVICE INDUSTRIES SUCH AS SOFTWARE HEALTH CARE LEISURE AND ENTERTAINMENT ARE EXPECTED TO GROW STRONGLY MORE JOBS WILL ALSO BE CREATED BY THE ABILITY OF US COMPANIES SUCH AS TELECOMMUNICATIONS AND RETAIL FIRMS TO EXPORT THEIR SERVICES AT COSTS BELOW FOREIGN COMPETITION BECAUSE OF HOMEGROWN TECHNOLOGY THESE ARE KEY SOURCES OF FUTURE UPWARD MOBILITY BUT EVEN FOR THE UPWARDLY MOBILE LIFE WILL BE MORE PRECARIOUS THAN BEFORE THANKS IN PART TO PEOPLE SUCH AS JOE FILOSETA IN A LONG CAREER OF JUMPING TO BETTER AND BETTER JOBS HE NOW HOLDS HIS BEST EVER EARNING COMFORTABLY IN THE SIX FIGURES AS CHIEF EXECUTIVE OFFICER OF A UNIT OF CYBERTEX CORP DALLAS BUT LIKE SO MANY GOOD JOBS OF THE 1990S HIS IS LINKED TO THE DRIVE TO ELIMINATE OTHER GOOD JOBS HIS FIRM AUTOMATES THE MORTGAGEAPPLICATION PROCESS SO THAT BANKS DON'T NEED TO HIRE ADDITIONAL WORKERS IN THE PAST YEAR HE SAYS ONE MIDWEST BANK CUSTOMER HAS DOUBLED MORTGAGELOAN VOLUME WITHOUT INCREASING ITS STAFF OF 10 UNDERWRITERS 9303100131 930310 ENTERPRISE SMALL SOFTWARE COMPANIES CRACK THE EDUCATIONAL MARKET GAMELIKE LOOK FEEL MAKE LEARNING EASIER FOR KIDS TO SWALLOW BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL SOME ENTERPRISING SOFTWARE COMPANIES ARE SCORING BIG BY MAKING LEARNING ALMOST AS MUCH FUN AS PLAYING NINTENDO WE CAN GET KIDS RUNNING INTO A ROOM WANTING TO DO MATH SAYS JOHN KERNAN CHAIRMAN AND CHIEF EXECUTIVE OF JOSTENS LEARNING A SAN DIEGO UNIT OF JOSTENS INC THAT USES EDUCATIONAL SOFTWARE IN ITS SCHOOLMANAGEMENT SYSTEMS THE DEMAND FOR EDUCATIONAL SOFTWARE IS UP SHARPLY MILLIONS OF CHILDREN NOW HAVE ACCESS TO COMPUTERS AT HOME IN ADDITION THE COST OF POWERFUL PERSONAL COMPUTERS HAS DROPPED AND BABYBOOMER PARENTS ARE FRETTING ABOUT THE QUALITY OF THEIR CHILDREN'S EDUCATION AS A RESULT THE MARKET HAS REALLY CAUGHT FIRE IN THE LAST YEAR SAYS PETER SCISCO EDITOR OF KIDS & COMPUTERS A NEW MAGAZINE THE MAIN FACTOR IN THE GROWTH THOUGH HAS BEEN THE IMPROVED QUALITY OF THE SOFTWARE WHICH STRIVES TO ENTERTAIN AS WELL AS TO TEACH WHEN IT WAS INTRODUCED MORE THAN A DECADE AGO EDUCATIONAL SOFTWARE GENERALLY FEATURED RELATIVELY CRUDE DRAWINGS OF CARTOON CHARACTERS WITH LIMITED MOVEMENT AND LITTLE OR NO SOUND THE BEST OF TODAY'S SOFTWARE COMBINES FULLMOTION ANIMATION AND PHOTOGRAPHQUALITY IMAGES WITH MUSIC AND DIGITIZED SPEECH PAUL STEPHENS A PARTNER OF THE SAN FRANCISCO INVESTMENT BANK ROBERTSON STEPHENS & CO PREDICTS THAT THE GROWTH AREA IN CONSUMER SOFTWARE FOR THE 1990S IS GOING TO BE EDUCATION SALES FOR THE HOME ARE EXPECTED TO GROW TO 438 MILLION IN 1994 FROM 280 MILLION LAST YEAR ACCORDING TO PC RESEARCH A RESTON VA RESEARCH CONCERN OVER THE SAME PERIOD SALES OF SOFTWARE USED IN SCHOOLS ARE PROJECTED TO RISE TO 250 MILLION FROM 200 MILLION SAYS SIMBA INFORMATION INC A RESEARCH CONCERN IN WILTON CONN THE SCHOOL MARKET FOR SOFTWARE HAS LONG BEEN DOMINATED BY SUCH COMPUTER GIANTS AS INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC AND EDUCATION PUBLISHERS SUCH AS SCHOLASTIC CORP THEIR HARDWARE AND BOOKS HAVE PROVIDED A NATURAL INROAD TO THE CLASSROOM BUT WITH THE SURGING INTEREST IN EDUCATIONAL SOFTWARE A FEW SMALL PUBLIC AND PRIVATE COMPANIES ARE ALSO MAKING THEIR MARK SINCE 1989 THE COMBINED SOFTWARE SALES OF THREE FRONTRUNNERS BRODERBUND SOFTWARE INC LEARNING CO AND DAVIDSON & ASSOCIATES INC HAVE MORE THAN DOUBLED TO ROUGHLY 115 MILLION ACCORDING TO COMPANY REPORTS AND ANALYSTS' ESTIMATES SO FAR MOST OF THE GROWTH AMONG THESE CALIFORNIA CONCERNS HAS COME FROM SALES FOR THE HOME MARKET AT LEARNING CO WHERE SALES TO HOMES ACCOUNT FOR ROUGHLY THREEQUARTERS OF SALES THE PRODUCT LINE HAS TRIPLED SINCE 1990 TO 30 PROGRAMS THE FREMONT COMPANY'S SOFTWARE PACKAGES COST FROM 40 TO 90 EACH TARGET FOUR AGE GROUPS RANGING FROM THREE TO 17 YEARS OLD AND TEACH READING WRITING SPELLING PROBLEMSOLVING MATH SCIENCE AND HISTORY ONE PROGRAM OUTNUMBERED INVOLVES FINDING THE MASTER OF MISCHIEF BEFORE HE TAKES OVER THE SHADY GLEN TV STATION AS PLAYERS DODGE AND ZAP THE VILLAIN'S ROBOT ACCOMPLICES THEY ALSO ASSEMBLE CLUES TO THE HIDING PLACE OF THE MASTER OF MISCHIEF ANOTHER PRODUCT TIME RIDERS IN AMERICAN HISTORY CALLS FOR FOILING DR DREAD WHO IS PLOTTING TO TAKE OVER THE WORLD BY BROADCASTING SCRAMBLED VERSIONS OF THE PAST TO UNCOVER THE TRUTH PLAYERS GATHER HISTORICAL FACTS WITH THE HELP OF FIVE HIGHTECH MACHINES AND A CRIMESOLVING TEAM THE TEAM INCLUDES A CAT THAT TRAVELS BACK IN TIME TO INTERVIEW HISTORICAL FIGURES DURING THE TWOYEAR PERIOD ENDED JUNE 30 1992 LEARNING CO'S ANNUAL NET INCOME NEARLY DOUBLED TO 19 MILLION IN THE SIX MONTHS ENDED DEC 31 EARNINGS GREW AN ADDITIONAL 55 BUT LEARNING CO AND THE OTHERS FACE A NUMBER OF CHALLENGES LIKE OTHER YOUNG COMPANIES IN COMPUTERRELATED FIELDS EDUCATIONAL SOFTWARE COMPANIES HAVE TO COPE WITH A PROLIFERATION OF COMPETITORS AND RAPID CHANGES IN TECHNOLOGY MANY OF THEM ALSO HAVE TO LEARN HOW TO SELL TO SCHOOLS CRACKING THE SCHOOL MARKET IS A NIGHTMARE SAYS ANN STEPHENS PRESIDENT OF PC RESEARCH THE SCHOOLS NEVER HAVE ANY MONEY THEY WANT HUGE DISCOUNTS AND EVERY SCHOOL DISTRICT BUYS IN A DIFFERENT WAY YOU HAVE TO JUMP THROUGH A LOT OF HOOPS THE TASK IS ESPECIALLY TRICKY WHEN SKEPTICAL TEACHERS REQUIRE PROOF THAT THE SOFTWARE WORKS A US OFFICE OF TECHNOLOGY ASSESSMENT STUDY FOUND THAT EVEN THOUGH VIRTUALLY EVERY SCHOOL HAS COMPUTERS ONLY HALF OF ALL TEACHERS USE THEM WHEN TECHNOLOGY SUCH AS SOFTWARE IS WELLDESIGNED AND ADULTS KNOW HOW TO INCORPORATE IT INTO THE LEARNING SITUATION IT CAN WORK VERY WELL SAYS JAN HAWKINS DIRECTOR OF THE CENTER FOR TECHNOLOGY IN EDUCATION AT NEW YORK'S BANK STREET COLLEGE OF EDUCATION SHE ADDS HOWEVER THAT EVEN TEACHERS WHO WANT TO USE COMPUTERS IN CLASS CAN TAKE YEARS TO FIGURE OUT EXACTLY HOW TO DO IT MOST OF THEM HAVEN'T GOTTEN THE SUPPORT THEY NEEDED FROM THEIR SCHOOLS SHE SAYS SMALL SOFTWARE DEVELOPERS ARE PROSPERING ANYWAY AS THE POPULARITY OF EDUCATIONAL SOFTWARE GROWS OVER SEVEN YEARS BRODERBUND HAS SOLD EIGHT MILLION COPIES OF ITS BESTKNOWN TITLES THE CARMEN SANDIEGO LINE OF GEOGRAPHY AND HISTORY GAMES AND THE PRINT SHOP A LINE OF PRINTING AND PUBLISHING PROGRAMS BRODERBUND SUCCEEDED IN FINDING PRODUCTS THAT BECAME STAPLES AND IT BUILT THE COMPANY AROUND THEM SAYS NELSON HELLER PUBLISHER OF THE HELLER REPORT A HIGHLAND PARK ILL NEWSLETTER ABOUT EDUCATIONALTECHNOLOGY AND TELECOMMUNICATIONS MARKETS BESIDES SELLING SOFTWARE FOR CONVENTIONAL USES SOME SMALL COMPANIES ARE PUSHING NEW APPLICATIONS FOR THEIR PROGRAMS TOM SNYDER PRODUCTIONS INC A WATERTOWN MASS CONCERN INCORPORATES ITS SOFTWARE INTO A ONECOMPUTER CLASSROOM FORMAT THAT REQUIRES CHILDREN TO INTERACT WITH EACH OTHER AS WELL AS WITH MACHINES ONE PRODUCT REQUIRES STUDENTS TO PLAY THE ROLES OF CITY OFFICIALS IN THE MIDST OF A BUDGET CRISIS WITH THE COMPANY'S SOFTWARE CALCULATING THE IMPLICATIONS OF THEIR DECISIONS THEY MUST FIGURE OUT HOW TO SPEND THE TOWN'S SCARCE FUNDS AND ELECTRONIC ARTS ONE OF THE LEADING MAKERS OF COMPUTER AND VIDEO GAMES PLANS TO LAUNCH A LINE OF WHAT IT CALLS CHILDREN'S EDUTAINMENT SOFTWARE ON APRIL 15 THE COMPANY WILL INTRODUCE FIVE PROGRAMS THIS YEAR AIMED AT CHILDREN AGED THREE TO 14 THE HOME LEARNING MARKET IS HUGE SAYS A SPOKESWOMAN FOR ELECTRONIC ARTS WHICH IS BASED IN SAN MATEO CALIF PARENTS ARE MORE SAVVY ABOUT COMPUTERS TODAY AND MORE CHILDREN ARE FAMILIAR WITH USING THEM FROM SCHOOL IT DOESN'T FEEL LIKE LEARNING ANYMORE SHE ADDS IT'S MORE SUBTLE SEE RELATED ARTICLE CHILDISH PURSUITS PAY AT BRODERBUND HOME OF CARMEN SANDIEGO WSJ MARCH 10 1993 9303100130 930310 INTERNATIONAL AUSTRALIAN RETAIL SALES CANBERRA AUSTRALIA RETAIL SALES IN AUSTRALIA TOTALED A SEASONALLY ADJUSTED 812 BILLION AUSTRALIAN DOLLARS US573 BILLION IN JANUARY UP 42 FROM A780 BILLION IN DECEMBER AND UP 43 FROM A779 BILLION IN JANUARY 1992 THE BUREAU OF STATISTICS SAID 9303100129 930310 FINANCING BUSINESS UNIVERSAL HEALTH REALTY INCOME TRUST UNIVERSAL HEALTH REALTY INCOME TRUST SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 15 MILLION SHARES THE KING OF PRUSSIA PA REAL ESTATE INVESTMENT TRUST SAID NET PROCEEDS FROM THE OFFERING WOULD BE USED TO REPAY INDEBTEDNESS UNDER ITS REVOLVING CREDIT AGREEMENT BASED ON YESTERDAY'S LATE PRICE OF 17125 FOR UNIVERSAL HEALTH SHARES IN NEW YORK STOCK EXCHANGE TRADING THE OFFERING WOULD RAISE ABOUT 257 MILLION SMITH BARNEY HARRIS UPHAM & CO AND KEMPER SECURITIES INC UNDERWRITERS FOR THE PROPOSED OFFERING WOULD RECEIVE A 225000SHARE OVERALLOTMENT OPTION 9303100128 930310 BUSINESS BRIEF RYKOFFSEXTON HAD LOSS OF 225 MILLION IN FISCAL 3RD QUARTER LOS ANGELES RYKOFFSEXTON INC REPORTED A 225 MILLION NET LOSS FOR THE THIRD QUARTER ENDED JAN 30 MOSTLY FROM ONETIME CHARGES SAID QUARTERLY DIVIDENDS HAVE BEEN SUSPENDED AND PROMISED CORPORATE CUTBACKS THE ANNOUNCEMENT SENT THE COMPANY'S STOCK TUMBLING 11 IT WAS QUOTED AT 1450 DOWN 1875 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE LOS ANGELESBASED DISTRIBUTOR AND MANUFACTURER OF INSTITUTIONAL FOODS SAID LOWERTHANEXPECTED SALES THE COST OF CLOSING OPERATIONS AND A SHARPER COMPETITIVE CLIMATE ALL ARE HURTING ITS BUSINESS RYKOFFSEXTON'S LATESTPERIOD LOSS EQUAL TO 193 A SHARE COMPARES WITH YEAREARLIER NET INCOME OF 15 MILLION OR 13 CENTS A SHARE THE LATEST PERIOD INCLUDED CHARGES TOTALING 195 MILLION OR 168 A SHARE FOR VARIOUS COSTSAVING MEASURES ALSO INCLUDED WAS A 14 MILLION ADDITION TO BADDEBT PROVISIONS THE COMPANY SAID SALES FOR THE LATEST QUARTER DECLINED 77 TO 360 MILLION FROM 3899 MILLION RYKOFFSEXTON WHICH HAS PAID A QUARTERLY DIVIDEND FOR MORE THAN TWO DECADES SAID IT HAS INDEFINITELY SUSPENDED ITS QUARTERLY DIVIDEND MARK VAN STEKELENBURG PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WITHOUT ELABORATION THAT THE ELIMINATION REFLECTS RYKOFFSEXTON'S CURRENT FINANCIAL PERFORMANCE MR VAN STEKELENBURG SAID THE COMPANY'S BOARD WILL AT ITS REGULAR MEETINGS CONSIDER REINSTITUTING THE DIVIDEND RYKOFFSEXTON HAS TWICE LOWERED ITS DIVIDEND IN RECENT MONTHS LAST PAYING 75 CENTS A SHARE ON JAN 25 THE COMPANY PAID 10 CENTS A SHARE ON OCT 21 AND BEFORE THAT PAID 15 CENTS A SHARE MR VAN STEKELENBURG SAID THE COMPANY'S ONETIME CHARGES WHICH TOTALED 31 MILLION BEFORE TAXES ARE BEING TAKEN BECAUSE RYKOFFSEXTON IS MAKING FUNDAMENTAL CHANGES IN THE WAY IT DOES BUSINESS THE EXECUTIVE SAID THERE WILL BE WORKFORCE REDUCTIONS PLANT CLOSURES AND RELOCATIONS REARRANGEMENTS BETWEEN THE COMPANY'S TWO OPERATING DIVISIONS AND CHANGES IN WAREHOUSE AND TRANSPORTING HE DIDN'T ELABORATE 9303100127 930310 MARKETING & MEDIA ECONOMIST NEWS MAGAZINE NAMES BILL EMMOTT EDITOR LONDON REUTER THE PUBLISHERS OF THE BRITISH BUSINESS AND NEWS MAGAZINE THE ECONOMIST SAID THEY CHOSE BILL EMMOTT TO SUCCEED RUPERT PENNANTREA AS EDITOR MR EMMOTT 37 YEARS OLD CURRENTLY BUSINESS AFFAIRS EDITOR AT THE ECONOMIST WILL TAKE OVER AT THE END OF MARCH WHEN MR PENNANTREA LEAVES TO BECOME DEPUTY GOVERNOR AT THE BANK OF ENGLAND THE ECONOMIST HAS WORLDWIDE WEEKLY SALES OF 500000 OF WHICH MORE THAN 100000 ARE SOLD IN BRITAIN AND 200000 IN NORTH AMERICA MR EMMOTT WHO SPENT PART OF HIS JOURNALISTIC CAREER IN ASIA HAS WRITTEN BOOKS ON JAPAN'S ECONOMIC POWER AND THE INFLUENCE OF JAPANESE MULTINATIONAL COMPANIES THE ECONOMIST IS PARTLY OWNED BY PEARSON PLC 9303100126 930310 SPRINT ACQUIRES CENTEL IN STOCKSWAP MERGER KANSAS CITY MO SPRINT CORP COMPLETED ITS ACQUISITION OF CENTEL CORP IN A STOCKSWAP MERGER VALUED AT 36 BILLION CENTEL IS A LOCAL TELEPHONE AND CELLULAR COMMUNICATIONS COMPANY IN CHICAGO WITH THE ADDITION OF CENTEL'S OPERATIONS SPRINT NOW PROVIDES LOCAL TELEPHONE SERVICE THROUGH 59 MILLION ACCESS LINES IN 19 STATES AND HAS CELLULAR OPERATIONS AND INVESTMENTS THAT SERVE A TOTAL POPULATION OF 201 MILLION SPRINT WAS PRIMARILY A LONGDISTANCE SERVICE PROVIDER BEFORE THE MERGER UNDER THE TERMS OF THE MERGER WHICH WAS APPROVED BY SHAREHOLDERS OF BOTH COMPANIES IN DECEMBER EACH CENTEL SHARE WILL BE CONVERTED INTO 137 SHARES OF SPRINT CENTEL HAS ABOUT 85 MILLION SHARES OUTSTANDING AT YESTERDAY'S CLOSING PRICE OF 30875 FOR SPRINT'S SHARES THE MERGER IS VALUED AT 36 BILLION INCLUDING ASSUMPTION OF CENTEL DEBT THE TOTAL VALUE OF THE TRANSACTION IS MORE THAN 47 BILLION SPRINT SAID SPRINT'S BOARD INCREASES TO 16 WITH THE MERGER CENTEL DIRECTORS JOINING THE SPRINT BOARD INCLUDE JOHN P FRAZEE JR WHO WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND NOW BECOMES PRESIDENT AND CHIEF OPERATING OFFICER OF SPRINT HE SERVES UNDER WILLIAM T ESREY SPRINT'S CHAIRMAN AND CHIEF EXECUTIVE 9303100125 930310 PEPPERAND SALT CHANGE BACK TO WHAT AMERICA WAS THE RETURN OF THE MINUET IT'S THEIR ESPRIT DE CORE 9303100124 930310 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES PC PRICES ARE CUT FURTHER AS RAGING WAR INTENSIFIES THE RAGING PERSONALCOMPUTER PRICE WAR INTENSIFIED AS INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL SLASH PRICES AS MUCH AS 20 ON SELECTED MODELS THE MOVE BY IBM BASED IN ARMONK NY FOLLOWS A PRICE CUT OF AS MUCH AS 15 ANNOUNCED EARLIER THIS WEEK BY COMPAQ COMPUTER CORP FOR SOME OF ITS DESKTOP MODELS THE SPEED OF IBM'S RESPONSE ALSO CONFIRMS THAT THE BIG COMPUTER MAKER CONTINUES TO DISCARD ITS PREVIOUSLY SLUGGISH PRACTICES IN THE PC MARKET WHERE IT REMAINS THE UNITSHARE LEADER IBM SAID THE PRICE CUTS RANGE UP TO 12 FOR PS/VALUEPOINT WITH THE PS/VALUEPOINT 486DX2 NOW SELLING FOR 2539 THE COMPANY SAID SUGGESTED LIST PRICE CUTS RANGE FROM 10 TO 18 FOR THE PS/2 INCLUDING THE ULTIMEDIA SERIES PRICES ON RELATED MONITORS WERE SLASHED 11 TO 20 THE INDUSTRY'S PRICESLASHING WAR ERUPTED LAST SUMMER WHEN COMPAQ INTRODUCED SOME CHEAP PCS AND IBM'S MOVE YESTERDAY SUGGESTS THE PRICE WAR ISN'T ABOUT TO END 9303100123 930310 TECHNOLOGY HANDHELD COMPUTER FIRM TO SELL STAKE TO OLIVETTI LONDON ITALY'S ING C OLIVETTI & CO BECAME THE FIRST EUROPEAN COMPUTER MAKER TO HOP ABOARD THE GLOBAL INDUSTRY BANDWAGON FOR PERSONAL COMMUNICATORS SMALL HANDHELD DEVICES BILLED AS THE NEXT WAVE IN PORTABLE COMPUTERS AT A NEWS CONFERENCE HERE OLIVETTI OFFICIALS SAID THEY AGREED TO BUY A MINORITY STAKE IN EO INC A CLOSELY HELD MOUNTAIN VIEW CALIF VENTURE THAT'S ONE OF THE EARLY LEADERS IN THE NEW TECHNOLOGY AND WHOSE EXISTING SHAREHOLDERS INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO AND JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CORP IN MAY THE ITALIAN COMPUTER MAKER PLANS TO START MARKETING EO DEVICES IN EUROPE OLIVETTI OFFICIALS PREDICTED THERE MAY BE ABOUT 40 MILLION USERS OF SUCH DEVICES IN EUROPE BY 2000 DATAQUEST INC A MARKET RESEARCH FIRM FORECASTS THERE MAY BE 115 MILLION USERS OF PORTABLE COMPUTERS SMALLER THAN TODAY'S NOTEBOOK MODELS IN EUROPE BY 1997 EO'S DEVICES USED WITH A SPECIAL PEN AND ELECTRONIC NOTEPAD THAT RECOGNIZES HANDWRITING CAN SEND AND RECEIVE FAXES COMPUTER FILES AND ELECTRONIC MAIL BY TELEPHONE OR CELLULAR RADIO 9303100122 930310 LEISURE & ARTS BUSINESS BOOKSHELF MAKING OF A LEANER MEANER WALL STREET BY HOLMAN W JENKINS JR A LOT OF AMERICANS HAVE SUFFERED THROUGH INDUSTRIAL RESTRUCTURING AND MOST OF THEM PROBABLY ASSUMED THAT THE GNOMES OF WALL STREET WERE BEHIND IT ALL WELL THE GNOMES ARE BEING RESTRUCTURED TOO AND LIKE EVERYBODY ELSE THEY'RE BOUNCING BACK MEANER AND MORE COMPETITIVE THE THEME OF ROY C SMITH'S LATEST BOOK IS SPELLED OUT IN THE TITLE COMEBACK THE RESTORATION OF AMERICAN BANKING IN THE NEW WORLD ECONOMY HARVARD BUSINESS SCHOOL PRESS 357 PAGES 2795 MR SMITH A PARTNER AT GOLDMAN SACHS & CO AND A PROFESSOR OF FINANCE AT NEW YORK UNIVERSITY ARGUES THAT OUR GUYS WILL EMERGE ON TOP BECAUSE THEY WENT THROUGH THE WRINGER FIRST THIS IS THE SAME COSMIC WRINGER THAT HAS BEEN SQUEEZING THE STUFFING OUT OF ONE AMERICAN INDUSTRY AFTER ANOTHER IN BUSINESS YOU CAN NO LONGER COUNT ON AN EASY LIFE JUST BECAUSE YOU SURVIVED SCHOOL AND GOT A FOOT THROUGH THE DOOR OF SOME CUSHY CORPORATE BUREAUCRACY MR SMITH'S BANKER FRIENDS ONCE TOOK THE ATTITUDE IF THE CLIENT WANTS YOU HE CAN MAKE AN APPOINTMENT NOT ANYMORE ALL OVER THE WORLD THE CLUBBY UTILITYLIKE FUNCTIONS OF THE CAPITAL MARKETS ARE BEING PRIED OPEN BY TECHNOLOGY AND COMPETITION BIG AND EVEN NOTSOBIG FIRMS NO LONGER GO HAT IN HAND TO BORROW MONEY FROM DEPOSITTAKING COMMERCIAL BANKERS NOW THEY CAN SELL THEIR IOUS DIRECTLY TO AN INVESTING PUBLIC IN SHORT THE FUTURE LIES WITH INVESTMENT BANKING OR WHAT MR SMITH LIKES TO CALL FINANCIAL WHOLESALERS THUS HAPPY DAYS ARE AHEAD FOR SUCH US POWERHOUSES AS GOLDMAN MERRILL LYNCH & CO AND SALOMON INC THEY'VE GOT THE EXPERTISE AND TECHNOLOGY AND THEY'VE HAD A HEAD START ON COMPETING FOR A LIVING SINCE THE NEW YORK STOCK EXCHANGE ABOLISHED FIXED COMMISSIONS 17 YEARS AGO AMONG COMMERCIAL BANKS MORGAN GUARANTY TRUST CO AND BANKERS TRUST CO HAVE WRIGGLED THROUGH WHATEVER HOLES THEY COULD FIND IN THE GLASSSTEAGALL ACT THE DEPRESSIONERA LAW THAT FENCED BANKS OUT OF THE SECURITIES MARKETS BOTH ARE WELL ON THEIR WAY TO BECOMING COMPETITIVE WITH THE INVESTMENT BANKS MR SMITH SEEMS LESS SURE ABOUT THE OTHER BIG NAMES SUCH AS CITIBANK AND CHASE MANHATTAN CORP SOME MAY YET PROSPER BY CATERING TO HOUSEHOLDS AND SMALL BUSINESSES OR BY CARVING OUT SPECIALIZED NICHES BUT A SHAKEOUT IS ON THE HORIZON EVEN WITH THE FAILURES AND MERGERS OF RECENT TIMES WE STILL HAVE AN ABSURD 12000 BANKS IN THIS COUNTRY OTHER COUNTRIES HAVE THEIR OWN PROBLEMS MAKING THEM EVEN LESS PREPARED FOR GLOBAL COMBAT GERMANY'S VAST DEUTSCHE BANK AG HAS HEDGED ITS BETS BY BUYING A LONDON INVESTMENT BANK BUT MOST GERMANS REMAIN WEDDED TO THE PATERNALISTIC HAUSBANK MODEL IN WHICH INDUSTRIAL COMPANIES ARE FROZEN INTO TORPID RELATIONSHIPS WITH A SINGLE LENDER IT CAN'T BE A COINCIDENCE THAT GERMANY IS THE PLANET'S BIGGEST IMPORTER OF FINANCIAL SERVICES IN FRANCE THE SOCIALISTS ARE STILL TRYING TO PERFECT THE OLD CRONY CAPITALISM MR SMITH POINTS UP THE INCESTUOUS POLITICS OF CREDIT LYONNAIS SA WHOSE BOSS JEANYVES HABERER HAS BEEN HAVING A GRAND TIME BUILDING AN EMPIRE WITH PUBLIC MONEY BANQUE PARIBAS ON THE OTHER HAND WAS PRIVATIZED BY THE CHIRAC GOVERNMENT IN 1986 AND HAS SET ABOUT TURNING ITSELF INTO AN INNOVATIVE AGGRESSIVE INVESTMENT HOUSE OF THE TWO MR SMITH REGARDS PARIBAS AS HAVING THE BETTER STRATEGY FOR FRENCH SUCCESS IN THE MODERN WORLD THE BRITISH DEREGULATED WITH A BIG BANG A FEW YEARS AGO THIS SEEMS TO HAVE SECURED LONDON'S STATUS AS A WORLD FINANCIAL CAPITAL EVEN IF MUCH OF ITS BUSINESS NOW BELONGS TO AMERICANS THE BRITISH BANKS WITH THE EXCEPTION OF SG WARBURG GROUP LACERATED THEMSELVES IN THE ENSUING SCRAMBLE AND MAY NEVER FULLY RECOVER WARBURG WISELY GOT ITS ACQUISITIONS OUT OF THE WAY EARLY AND SAT BACK AS OTHERS PANICKED IN THE POSTBANG CONSOLIDATION MR SMITH IS AT HIS BEST RECOUNTING JAPAN'S BRIEF METEORIC CAREER AS A FINANCIAL SUPERPOWER IN THE '80S NAMES LIKE SUMITOMO BANK LTD AND DAIICHI KANGYO BANK LTD APPEARED OVERNIGHT AT THE TOP OF THE WORLD RANKINGS IN ONE YEAR JAPANESE BANKS MADE 40 OF THE COMMERCIAL AND INDUSTRIAL LOANS IN THE US AND THEN POOF THEY WERE GONE SO MUCH FOR THE BABARU KEIZAI OR BUBBLE ECONOMY WHICH LASTED THROUGH MOST OF THE '80S JAPAN'S HEFTY TRADE SURPLUSES EASY MONETARY POLICY AND SAMURAI SAVINGS ETHIC HAD CONSPIRED TO PUT A TON OF MONEY INTO THE HANDS OF JAPANESE INVESTORS THIS CASH GLUT FUELED THE DIZZYING RISE IN THE TOKYO STOCK AND REAL ESTATE MARKETS THE ASSET SPLURGE SOON SPILLED OVERSEAS INSPIRING A LOT OF SILLY BOOKS ABOUT THE JAPANESE THREAT IN TRUTH JAPANESE FOLKS WITH CHECKBOOKS WERE A WELCOME SIGHT TO ANYBODY WHO HAD A RECORD COMPANY OR AN OFFICE BUILDING TO UNLOAD BECAUSE THEY ALWAYS OVERPAID IT WAS THE JAPAN THAT COULDN'T SAY NO NOBODY IS QUITE SURE WHAT EFFECT THE RECENT COLLAPSE IN ASSET VALUES HAS HAD ON JAPAN'S BANKS THE MINISTRY OF FINANCE IS DILIGENTLY CONCEALING THE INFORMATION IN ANY CASE MR SMITH RECKONS THE JAPANESE BANKS WILL BE TOO BUSY LICKING THEIR WOUNDS TO VENTURE INTO THE SUMO RING OF INTERNATIONAL FINANCE FOR A WHILE THE BUBBLE'S IMPLOSION HAS BEEN CHASTENING THE JAPANESE AWAKENED TO FIND THAT THEIR CAPITAL MARKETS HAD BECOME LAUNDROMATS FOR BRIBES FLOWING AMONG POLITICIANS BUSINESSMEN AND YAZUKA GANGSTERS MR SMITH TELLS US ABOUT ONE TOKYO RESTAURANT OWNER KNOWN AS THE BUBBLE LADY WHO MANAGED TO BORROW 25 BILLION FROM JAPAN'S MOST PRESTIGIOUS BANKS ON THE STRENGTH OF SOME BADLY FORGED DOCUMENTS AND HER RUMORED CONNECTION TO UNSPECIFIED BIG SHOTS SHE BLEW THIS WAD IN THE STOCK MARKET AS FOR THE MILLIONS OF JAPANESE WHO LOST THEIR OWN SAVINGS THEY WERE OUTRAGED TO LEARN THAT THE BIG FOUR STOCKBROKERS HAD ROUTINELY AND WITH THE FINANCE MINISTER'S KNOWLEDGE RIGGED TRADES OR PAID KICKBACKS TO CUSHION THE LOSSES OF MORE POWERFUL FOLKS ALL OF THIS HAS BEEN VERY EMBARRASSING TO THE JAPANESE MR SMITH BELIEVES THE UPSHOT WILL BE AN OVERDUE PURGING OF THE THIRD WORLD REMNANTS IN THEIR POLITICAL CULTURE IF HE'S RIGHT THE NEW JAPAN WILL BE MORE INCLINED TO SHOULDER SOME OF THE WORLD'S BURDENS LESS PRONE TO LOOK AT THE INTERNATIONAL TRADING SYSTEM THE WAY A SHARK EYES A WOUNDED ALBACORE MR SMITH WRITES ABOUT THESE MATTERS ENGAGINGLY OCCASIONALLY AS WITH HIS ACCOUNTS OF SALOMON'S TREASURY BOND SHENANIGANS AND RUSSIA'S FALTERING ECONOMIC REFORMS YOU GET THE FEELING HE'S SPLICING TOGETHER NEWS CLIPPINGS WITH NO PARTICULAR END IN MIND BUT WHEN HE STICKS TO HIS THEME HE MAKES HIS CASE WITH VERVE AND CONVICTION MR JENKINS IS A JOURNAL EDITORIAL WRITER 9303100120 930310 MARKETING & MEDIA CCA INDUSTRIES UNVEILS NEW TOOTHPASTE FORMULA EAST RUTHERFORD NJ CCA INDUSTRIES INC SAYS ITS NEW TOOTHPASTE COMBINES BAKING SODA PEROXIDE AND FLUORIDE FOR THE FIRST TIME HOWEVER SOME DENTISTS AREN'T EXCITED ABOUT IT CCA A BEAUTY AND HEALTH AIDS MAKER SAID IT SIGNED AN EXCLUSIVE WORLDWIDE LICENSING PACT WITH NORMAN GORDON A NEW ROCHELLE NY DENTIST WHO DEVELOPED THE TOOTHPASTE THE PASTE WHICH AS YET IS UNNAMED WILL BE THE ONLY PRODUCT ON THE MARKET CCA SAID THAT COMBINES THE THREE INGREDIENTS IN A STABLE PASTE FORM THE COMPANY SAID ONE OTHER PRODUCT USES THE INGREDIENTS BUT NOT IN A TRADITIONAL PASTE NOT EVERYONE IS SOLD ON THE FORMULA THE RESEARCH HAS REALLY NOT INDICATED THAT THIS TYPE OF FORMULATION IS GOING TO PROMOTE OR CHANGE A PATIENT'S ORAL CONDITION AS IT RELATES TO PERIODONTAL THERAPY SAYS WARREN SCHERER ASSOCIATE PROFESSOR AT NEW YORK UNIVERSITY'S COLLEGE OF DENTISTRY AND A SPOKESMAN FOR THE AMERICAN DENTAL ASSOCIATION SAID THE ACTIVE INGREDIENTS ARE NO MORE OR LESS EFFECTIVE THAN REGULAR FLUORIDE TOOTHPASTE AND FLOSSING 9303100119 930310 RENO AIR TRAFFIC RENO NEV RENO AIR SAID IT FLEW 486 MILLION REVENUE PASSENGER MILES IN FEBRUARY AND HAD A LOAD FACTOR OF 759 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER CARRIED ONE MILE LOAD FACTOR REFERS TO THE PERCENTAGE OF SEATS FILLED BOTH FIGURES ARE THE HIGHEST IN RENO AIR'S EIGHTMONTH HISTORY THE AIRLINE SAID 9303100118 930310 IMCERA DISCLOSES PROBLEMS AT UNIT STOCK PLUNGES 14 BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL IMCERA GROUP INC SHARES FELL SHARPLY IN HEAVY TRADING AFTER THE COMPANY DISCLOSED THAT PROBLEMS CONTINUE TO PLAGUE OPERATING RESULTS AT ITS PITMANMOORE ANIMAL HEALTH CARE UNIT AFTER THE NORTHBROOK ILL COMPANY SAID IT WOULD TAKE AN UNSPECIFIED BUT SIGNIFICANT RESTRUCTURING CHARGE IN ITS FOURTH QUARTER ENDING IN JUNE IMCERA SHARES TUMBLED 4375 OR 14 TO 26125 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY VOLUME TOPPED 28 MILLION SHARES WE NOW KNOW THAT RETURNING PITMANMOORE TO AN ACCEPTABLE LEVEL OF PROFITABILITY WILL HAVE A MATERIAL ADVERSE EFFECT IN THIS FISCAL YEAR SAID IMCERA WHICH MAKES CHEMICALS AND ANIMAL AND HUMAN HEALTH PRODUCTS C RAY HOLMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY NOW EXPECTS PERSHARE EARNINGS FOR ITS THIRD QUARTER ENDING MARCH 31 TO BE SEVERAL CENTS BELOW THE 42 CENTS FROM CONTINUING OPERATIONS REPORTED IN THE YEARAGO PERIOD FACTORS CONTRIBUTING TO THE DISAPPOINTING RESULTS SAID MR HOLMAN INCLUDED PITMANMOORE'S CONTINUING POOR OPERATING RESULTS AND THE PLANNED RESTRUCTURING CHARGE FOR THE DIVISION THE COMPANY SAID STEPS IN MIND FOR PITMANMOORE COULD INCLUDE CONSOLIDATING SOME OF ITS OPERATIONS WORLDWIDE AND POSSIBLE LAYOFFS BUT SENIOR EXECUTIVES WEREN'T MORE SPECIFIC ABOUT WHAT FACILITIES COULD BE AFFECTED BY SUCH A MOVE JAMES KEENEY AN ANALYST WITH MABON SECURITIES IN BOSTON REVISED HIS RATING ON THE COMPANY TO HOLD FROM BUY AND SAID THE INVESTMENT COMMUNITY NOW HAS BEEN TWICE BURNED BY IMCERA THIS FISCAL YEAR THE FIRST TIME WAS WHEN MR HOLMAN TOOK OVER FROM M BLAKEMAN INGLE WHO RESIGNED UNDER PRESSURE FROM THE COMPANY'S BOARD IN DECEMBER MR KEENEY THEN SAID HE HAD THOUGHT THE COMPANY WAS IN GOOD SHAPE FOR ATTAINING 20 GROWTH UNDER MR INGLE AT THE TIME THE HEAD OF THE ANIMALHEALTH DIVISION BOYD D WAINSCOTT ALSO RESIGNED UNDER PRESSURE MR KEENEY SAID THE COMPANY ALSO IS GETTING DISAPPOINTING RESULTS IN THE SALE OF BULK AROMATIC FLUORINE A RAW MATERIAL USED IN THE PRODUCTION OF QUINOLONE ANTIBIOTICS TWO OUT OF THREE CYLINDERS NOW ARE MISFIRING HE SAID THE DISEASE OF DISAPPOINTING RESULTS HAS SPREAD FROM PITMANMOORE TO SPECIALTY CHEMICALS PITMANMOORE'S DIFFICULTIES HAVE INCLUDED RECESSIONS IN MANY DEVELOPED COUNTRIES AND EVEN DELAYS IN GETTING PRODUCT APPROVALS FROM THE FEDERAL FOOD AND DRUG ADMINISTRATION 9303100117 930310 INTERNATIONAL WESTPAC TO SELL SOME BUSINESSES SYDNEY AUSTRALIA WESTPAC BANKING CORP SAID IT WILL SELL ITS BRANCH OPERATIONS IN SEOUL SOUTH KOREA AND TAIPEI TAIWAN AND ITS INTEREST IN THE JOINT VENTURE PT WESTPAC PANIN BANK IN JAKARTA INDONESIA THE BANK SAID IT WILL ALSO SELL THE BUSINESSES OF ITS AUSTRALIAN GUARANTEE CORP FINANCE SUBSIDIARY IN INDONESIA TAIWAN HONG KONG AND THAILAND AND SELL ITS INTERESTS IN SINGAPORE AND MALAYSIA THE SALE OF SOME OF WESTPAC'S ASIAN OPERATIONS IS PART OF AN EFFORT TO SHRINK THE BANK'S BUSINESSES WORLDWIDE AND RESTORE PROFITABILITY WESTPAC REPORTED A LOSS OF 156 BILLION AUSTRALIAN DOLLARS US111 BILLION IN ITS FISCAL YEAR ENDED SEPT 30 A SPOKESMAN FOR THE BANK SAID THE OPERATIONS TO BE SOLD REPRESENT ABOUT 3 OF WESTPAC'S TOTAL ASSETS WORLDWIDE 9303100116 930310 SECURITY FIRST SPECIAL CHARGE CLEVELAND SECURITY FIRST CORP SAID IT TOOK A SPECIAL CHARGE IN FEBRUARY OF 19 MILLION OR 110 A SHARE FROM THE EARLY RETIREMENT OF 10 MILLION OF HIGHRATE LONGTERM BORROWINGS FROM THE FEDERAL HOME LOAN BANK THE COMPANY SAID THE MOVE WILL REDUCE ITS ANNUAL INTEREST EXPENSE NEARLY 625000 ON A PRETAX BASIS FOR THE NEXT FOUR YEARS SECURITY FIRST IS THE HOLDING COMPANY FOR SECURITY FEDERAL SAVINGS & LOAN ASSOCIATION OF CLEVELAND 9303100115 930310 ECONOMY UNIT LABOR COSTS FELL AT 04 RATE IN FOURTH QUARTER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNIT LABOR COSTS DECLINED IN THE FOURTH QUARTER FOR THE FIRST TIME IN MORE THAN FOUR YEARS REVISED LABOR DEPARTMENT FIGURES SHOW THE DECLINE AT A 04 ANNUAL RATE SIGNALS THAT INFLATIONARY PRESSURES ARE WELL UNDER CONTROL WHEN LABOR COSTS FALL IT MEANS COMPANIES CAN MAINTAIN THEIR PROFIT MARGINS WITH LITTLE OR NO PRICE INCREASES ON THEIR GOODS AND SERVICES THE LAST TIME UNIT LABOR COSTS FELL WAS IN THE FIRST QUARTER OF 1988 THE LABOR DEPARTMENT ORIGINALLY ESTIMATED THAT LABOR COSTS ROSE AT A 06 PACE IN THE FOURTH QUARTER THE REVISED FIGURES SHOW THAT US BUSINESSES BOOSTED THEIR PRODUCTIVITY 28 LAST YEAR UP FROM THE 27 REPORTED A MONTH AGO IT WAS THE BIGGEST INCREASE IN 20 YEARS AS WAS THE ORIGINAL FIGURE THE ANNUAL INCREASE WAS THE RESULT OF A YEARLONG EFFORT TO GET MORE WORK OUT OF EACH EMPLOYEE FOR EVERY HOUR ON THE JOB BUSINESSES HAVE DONE THAT BY INVESTING HEAVILY IN LABORSAVING CAPITAL EQUIPMENT AND BY TRIMMING PAYROLLS PRODUCTIVITY IN THE NONFARM BUSINESS SECTOR INCREASED ONLY 05 IN 1991 INCREASES IN PRODUCTIVITY ARE GOOD FOR THE LONGRUN HEALTH OF THE ECONOMY THEY IMPROVE COMPETITIVENESS AND BOLSTER THE STANDARD OF LIVING BUT IN THE SHORT RUN THEY MEAN FEWER JOBS ARE BEING CREATED IN THE FOURTH QUARTER PRODUCTIVITY JUMPED AT A REVISED 48 ANNUAL RATE WHICH HELPS EXPLAIN WHY JOB GROWTH WAS SO SLOW DURING THE PERIOD EVEN THOUGH THE ECONOMY PICKED UP MOMENTUM RATHER THAN HIRING NEW PEOPLE TO MEET THE INCREASED DEMAND EMPLOYERS WERE WORKING EXISTING PERSONNEL HARDER FOR THE YEAR DURABLEGOODS MANUFACTURERS INCREASED THEIR PRODUCTIVITY 3 AND NONDURABLE GOODS PRODUCERS INCREASED PRODUCTIVITY 29 UP FROM 15 AND 23 RESPECTIVELY IN 1991 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9303100114 930310 INTERNATIONAL ITALIAN GOVERNMENT IS NEAR COLLAPSE SCANDAL ENGULFS HEAD OF GIANT ENI BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN PRIME MINISTER GIULIANO AMATO NARROWLY AVERTED THE COLLAPSE OF HIS GOVERNMENT AFTER SHELVING A CONTROVERSIAL DECREE TO PARTIALLY DECRIMINALIZE ILLEGAL POLITICAL PARTY FINANCING BUT THE GOVERNMENT'S HOLD ON POWER REMAINS PRECARIOUS AS THE FALLOUT FROM THE COUNTRY'S SNOWBALLING CORRUPTION PROBE CONTINUES TO DISCREDIT THE RULING COALITION POLITICAL COMMENTATORS SAID MR AMATO'S ATTEMPT TO PARTIALLY ABSOLVE THOSE ACCUSED IN THE SCANDAL HAS SEVERELY DAMAGED HIS CREDIBILITY AND YESTERDAY POLICE ARRESTED THE CHAIRMAN OF ITALY'S THIRDLARGEST CONGLOMERATE ENI CHARGING THAT HE AUTHORIZED KICKBACKS TO GOVERNMENT CONTRACTING OFFICIALS THE RETROACTIVE DECREE WOULD HAVE REDUCED VIOLATIONS OF POLITICAL PARTY FINANCING LAWS FROM A CRIMINAL OFFENSE TO AN ADMINISTRATIVE INFRACTION BUT THE GOVERNMENT BACKED DOWN AFTER A WAVE OF PROTEST ERUPTED FROM OPPOSITION LEADERS INVESTIGATING MAGISTRATES AND THE GENERAL PUBLIC AND PRESIDENT OSCAR LUIGI SCALFARO REFUSED TO SIGN THE DECREE FOLLOWING YESTERDAY'S CABINET MEETING MR AMATO SAID HE WOULD TURN THE PARTY FINANCING ISSUE OVER TO PARLIAMENT WHICH ALREADY HAS DRAFTED LEGISLATION ON THE MATTER THE GOVERNMENT RESERVED THE RIGHT TO AMEND THE BILL STILL SPECULATION IS GROWING THAT MR AMATO'S GOVERNMENT WON'T LAST THE WEEK THE PRIME MINISTER WAS SCHEDULED TO ADDRESS THE SENATE THIS MORNING ABOUT THE CORRUPTION ISSUE AND THE PARTY FINANCING BILL AFTER WHICH SOME COALITION PARTNERS ARE SET TO DISCUSS THE GOVERNMENT'S FUTURE THE TENTATIVE RESOLUTION CAME AFTER ANOTHER DAY OF TUMULTUOUS POLITICAL EVENTS EARLY YESTERDAY THE LIRA HIT RECORD LOWS AGAINST THE DOLLAR AFTER NEWS THAT POLICE HAD ARRESTED GABRIELE CAGLIARI CHAIRMAN OF ITALY'S THIRDLARGEST CORPORATION STATECONTROLLED PETROCHEMICAL COMPANY ENTE NAZIONALE IDROCARBURI MR CAGLIARI WHO IS UNDER INVESTIGATION FOR SEVERAL OTHER CHARGES IN ITALY'S ESCALATING CORRUPTION PROBE WAS CHARGED WITH ALLEGEDLY AUTHORIZING THE PAYMENT OF KICKBACKS BY ENICONTROLLED ENGINEERING GROUP NUOVO PIGNONE SPA NUOVO PIGNONE ALLEGEDLY PAID THE BRIBES TO STATE ELECTRICITY AUTHORITY ENEL FOR A CONTRACT TO SUPPLY GAS TURBINES NUOVO PIGNONE'S CHIEF EXECUTIVE WAS ALSO ARRESTED LATER IN THE DAY JUSTICE MINISTER GIOVANNI CONSO DODGED QUESTIONS ABOUT HIS POSSIBLE RESIGNATION MR CONSO WHO DRAFTED THE CONTROVERSIAL POLITICAL SOLUTION PACKAGE OPPOSED MR AMATO'S USE OF A DECREE TO DECRIMINALIZE PARTY FINANCING AND MONDAY IMPLIED HE MIGHT RESIGN OVER THE ISSUE BUT HE SAID HE WOULD POSTPONE ANY DECISION ON HIS RESIGNATION UNTIL NEXT WEEK FOUR OTHER MINISTERS HAVE ALREADY RESIGNED IN CONNECTION WITH THE CORRUPTION SCANDAL ALSO YESTERDAY A PARLIAMENTARY COMMISSION RECOMMENDED LIFTING PARLIAMENTARY IMMUNITY FROM FORMER PRIME MINISTER AND FORMER SOCIALIST PARTY SECRETARY BETTINO CRAXI PARLIAMENT WILL VOTE IN THE NEXT TWO WEEKS WHETHER TO ALLOW PROSECUTORS TO PROCEED WITH INVESTIGATIONS OF MR CRAXI FOR ALLEGED CORRUPTION AND ILLEGAL PARTY FINANCING MEANWHILE OPPOSITION PARTIES CONTINUED TO CALL FOR MR AMATO'S RESIGNATION AND ALTHOUGH LEADERS OF HIS FOURPARTY COALITION REITERATED THEIR SUPPORT FOR THE GOVERNMENT SOME SUCH AS SOCIAL DEMOCRAT LEADER CARLO VIZZINI DIDN'T EXCLUDE THE POSSIBILITY OF WITHDRAWING SUPPORT 9303100113 930310 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK BOB WOMACK 52 YEARS OLD WAS NAMED PRESIDENT OF THE TYSON SEAFOOD GROUP A SEATTLEBASED UNIT OF THIS POULTRY PRODUCER AND MARKETER MR WOMACK FORMERLY SENIOR VICE PRESIDENT FOR SALES AND MARKETING AT TYSON SUCCEEDS RON JENSEN WHO WAS PRESIDENT OF ARCTIC ALASKA FISHERIES CORP WHEN TYSON ACQUIRED THE COMPANY LAST YEAR MR JENSEN 55 WILL REMAIN A TYSON DIRECTOR AND CONTINUE TO WORK WITH THE SEAFOOD GROUP ON GOVERNMENTAL AFFAIRS FISHING AND OTHER MATTERS THE COMPANY SAID 9303100112 930310 MAGAZINE AD REVENUE ROSE 109 AD PAGES 46 DURING FEBRUARY NEW YORK TOTAL MAGAZINE ADVERTISING REVENUE FOR FEBRUARY WAS UP 109 OVER A YEAR AGO WHILE TOTAL AD PAGES INCREASED 46 THE PUBLISHERS INFORMATION BUREAU SAID AD REVENUE WAS 5805 MILLION IN FEBRUARY SAID THE BUREAU WHICH TRACKS THE INDUSTRY FOR THE FIRST TWO MONTHS OF 1993 AD REVENUE WAS UP 11 OVER A YEAR AGO TO 999 MILLION WHILE ADVERTISING PAGES INCREASED 42 JAMES R GUTHRIE EXECUTIVE VICE PRESIDENT FOR MARKETING DEVELOPMENT AT MAGAZINE PUBLISHERS OF AMERICA OF WHICH THE BUREAU IS A SUBSIDIARY SAID THE IMPROVING TREND COULD BE ATTRIBUTED TO A NUMBER OF FACTORS JANUARYFEBRUARY 1993 DATA BENEFIT FROM COMPARISON TO THE PERIOD A YEAR AGO WHEN THE INDUSTRY WAS STILL SHAKING OFF THE RECESSION'S EFFECTS BUT ALSO VERY IMPORTANT HE SAID WAS THAT ADVERTISERS WERE MAKING BETTER USE OF THEIR DATA BASES AND THUS WERE ABLE TO MORE EFFICIENTLY USE MAGAZINES TO TARGET THEIR CUSTOMERS 9303100111 930310 INTERNATIONAL HOECHST AND BASF POST PROFIT DROPS CUT DIVIDENDS SPECIAL TO THE WALL STREET JOURNAL FRANKFURT DRIVING HOME THAT 1992 WAS A TOUGH YEAR TWO BIG GERMAN CHEMICAL COMPANIES CUT THEIR DIVIDENDS SHARPLY AND REPORTED STEEP DROPS IN EARNINGS HOECHST AG CUT ITS DIVIDEND MORE THAN EXPECTED TO NINE MARKS 541 FROM 12 MARKS PAID IN 1991 MARKET WATCHERS HAD EXPECTED HOECHST WOULD PAY A 10MARK DIVIDEND THE PAYOUT REDUCTION AT BASF AG HOWEVER WASN'T AS BIG AS EXPECTED BASF SAID IT WOULD PAY A DIVIDEND OF 10 MARKS DOWN FROM 12 MARKS IN 1991 MANY EUROPEAN ANALYSTS HAD EXPECTED BASF TO SLASH ITS 1992 DIVIDEND TO NINE MARKS A SHARE HOECHST'S ANNOUNCEMENT CAME AFTER THE MARKET CLOSED IN TRADING YESTERDAY HOECHST'S SHARES ROSE 270 MARKS TO FINISH AT 25630 MARKS MOSTLY BECAUSE OF THE BASF PAYOUT NEWS AND A GENERAL RISE IN THE MARKET MANY ANALYSTS SAY HOECHST COULD SEE A SELLOFF TODAY GERMAN CHEMICAL COMPANIES HAVE BEEN STRUGGLING AGAINST A WEAK ECONOMY AND HEAVY PRICE COMPETITION BAYER AG GERMANY'S OTHER BIG CHEMICAL COMPANY IS EXPECTED TO ANNOUNCE A DIVIDEND CUT IN THE NEAR FUTURE YESTERDAY BAYER SHARES GAINED 850 MARKS TO CLOSE AT 28150 MARKS AS INVESTORS CROSSED THEIR FINGERS THAT THE COMPANY MIGHT OFFER BETTERTHANEXPECTED DIVIDEND NEWS AKIN TO BASF'S OVERALL BASF'S EARNINGS REPORT WAS PRETTY GLUM NET INCOME FELL 41 TO 615 MILLION MARKS 3697 MILLION FROM 104 BILLION MARKS THE YEAR BEFORE SALES SLID 45 TO 4452 BILLION MARKS 2676 BILLION FROM 4663 BILLION MARKS THE COMPANY DIDN'T ELABORATE ON ITS RESULTS SAYING THAT MORE DETAILS WOULD BE GIVEN AT ITS ANNUAL NEWS CONFERENCE MARCH 18 HOECHST MEANWHILE SAID NET WAS DOWN 13 TO 118 BILLION MARKS FROM 136 BILLION MARKS AS SALES FELL 28 TO 4587 BILLION MARKS FROM 4719 BILLION MARKS THE ECONOMIC ENVIRONMENT WAS YET WORSE FOR HOECHST IN 1992 THE COMPETITIVE PRESSURE GREW STRONGER IN IMPORTANT INDUSTRY SECTORS THE COMPANY SAID SHARPER COMPETITION AND ECONOMIC WEAKNESS BROUGHT PLASTICS FILMS AND CHEMICALS SECTORS TO A TOTALLY UNSATISFACTORY PRICE LEVEL HOECHST SAID HOWEVER THE PHARMACEUTICALS AND INDUSTRIAL GAS SECTORS WERE ABLE TO MAINTAIN THEMSELVES WELL THE COMPANY SAID HOECHST SAID ITS CAPITAL INVESTMENT IN 1992 ROSE ABOUT 5 TO 378 BILLION MARKS THE COMPANY SAID IT WOULD GIVE A DETAILED PICTURE OF ITS 1992 BUSINESS DEVELOPMENT AT A NEWS CONFERENCE MARCH 23 9303100110 930310 COCACOLA CHIEF SEES ONLY SLIGHT INCREASE IN HIS ANNUAL SALARY GOIZUETA'S 1992 COMPENSATION INCLUDES NO STOCK AFTER PAY IN 1991 RAISED EYEBROWS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL THIS IS THE CALM AFTER THE STORM COCACOLA CO'S CHAIRMAN AND CHIEF EXECUTIVE ROBERTO C GOIZUETA WASN'T AWARDED ANY RESTRICTED STOCK IN 1992 AND RECEIVED ONLY A SLIGHT INCREASE IN SALARY AND COMPENSATION LAST YEAR MR GOIZUETA'S 1991 COMPENSATION CAME UNDER SCRUTINY LAST YEAR AFTER COKE'S PROXY STATEMENT DISCLOSED THAT HE WAS GRANTED ONE MILLION SHARES OF RESTRICTED STOCK THEN VALUED AT ABOUT 81 MILLION THE DISCLOSURE OF WHAT WAS BELIEVED TO BE THE LARGEST SUCH AWARD EVER PROMPTED SO MUCH PRESS ATTENTION THAT MR GOIZUETA TOOK THE UNUSUAL STEP OF DEFENDING THE AWARD AT LAST YEAR'S ANNUAL SHAREHOLDERS MEETING IN ATLANTA WHERE COCACOLA IS BASED MR GOIZUETA WHO MUST REMAIN AT THE COMPANY UNTIL 1996 TO RECEIVE THE STOCK CITED THE COMPANY'S STRONG PERFORMANCE IN HIS MORE THAN 10 YEARS AT THE HELM NO SHAREHOLDERS RAISED ANY QUESTIONS AFTER MR GOIZUETA'S EXPLANATION ACCORDING TO THE 1992 PROXY STATEMENT RELEASED YESTERDAY MR GOIZUETA RECEIVED 14 MILLION IN SALARY AND A 18 MILLION BONUS HE ALSO RECIEVED LONGTERM INCENTIVE PLAN AWARDS VALUED AT 13 MILLION IN 1991 MR GOIZUETA RECEIVED 12 MILLION IN SALARY A 19 MILLION BONUS AND 1 MILLION IN LONGTERM INCENTIVE PLAN PAYOUTS HE ALSO RECEIVED THE ONE MILLION SHARES OF RESTRICTED STOCK THE NEW PROXY SAID THAT MR GOIZUETA RECEIVED NO RESTRICTED STOCK IN 1992 ADDING NO FURTHER AWARDS TO MR GOIZUETA ARE CONTEMPLATED COCACOLA DECLINED TO COMMENT ON MR GOIZUETA'S COMPENSATION THE ONLY COCACOLA EXECUTIVE TO RECEIVE A RESTRICTEDSTOCK AWARD LAST YEAR WAS JOHN HUNTER THE SENIOR VICE PRESIDENT IN CHARGE OF THE COMPANY'S VAST OVERSEAS OPERATIONS MR HUNTER THE PROXY SAID WAS AWARDED STOCK VALUED AT 21 MILLION THE NEW PROXY DISCLOSURE RULES DO GIVE A FEEL FOR HOW MUCH COKE'S TOP OFFICERS HAVE BENEFITED FROM THEIR EFFORTS TO RAISE THE VALUE OF THE COMPANY'S SHARES THE VALUE OF MR GOIZUETA'S TOTAL RESTRICTED STOCK HOLDINGS SOME 56 MILLION SHARES WAS 2352 MILLION AT YEAR END AND THE VALUE OF THE TOTAL RESTRICTED STOCK HOLDINGS OF DONALD R KEOUGH THE COMPANY'S PRESIDENT WHO RETIRES NEXT MONTH WAS 553 MILLION REPRESENTING 13 MILLION SHARES SEPARATELY THE COMPANY'S ANNUAL REPORT SHOWED THAT COCACOLA'S SHARE OF THE INTERNATIONAL SOFT DRINK MARKET ROSE TO 47 LAST YEAR FROM 44 IN 1991 THE COMPANY'S SHARE OF THE US SOFT DRINK MARKET HOWEVER REMAINED FLAT AT 41 9303100109 930310 MARKETING & MEDIA MOVIEMAKING COST RECORD 288 MILLION IN '92 VALENTI TELLS US THEATER OWNERS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS DESPITE HOLLYWOOD'S OFTHEARD CRY FOR LOWER PRODUCTION COSTS THE AVERAGE PRICE OF MAKING A MOVIE REACHED AN ALLTIME HIGH OF 288 MILLION LAST YEAR THAT'S BAD NEWS FOR COSTCONSCIOUS STUDIO CHIEFS WHO WERE CHEERED BY 1991'S DROP IN EXPENSES TO 261 MILLION FROM 268 MILLION IN 1990 THE SECOND DECLINE IN 12 YEARS ADD IN MARKETING ADVERTISING AND PRINT COSTS AND STUDIOS LAST YEAR SHELLED OUT AN AVERAGE OF 40 MILLION FOR EACH FILM COMPARED WITH 381 MILLION IN 1991 ACCORDING TO JACK VALENTI PRESIDENT AND CHIEF EXECUTIVE OF THE MOTION PICTURE ASSOCIATION OF AMERICA MR VALENTI ANNOUNCED THE FIGURES AT THE NATIONAL ASSOCIATION OF THEATER OWNERS ANNUAL CONVENTION HERE HE DIDN'T SAY WHY COSTS HAVE INCREASED SO MUCH THOUGH BIGBUDGET FILMS ARE ALWAYS A CULPRIT AND HOLLYWOOD HAD ITS SHARE LAST YEAR WITH LETHAL WEAPON 3 BATMAN RETURNS AND BRAM STOKER'S DRACULA IT APPEARS 1993 MAY BRING EVEN HIGHER COSTS AS THESE OFFERINGS INVADE THE BOX OFFICE THIS SUMMER THE 60 MILLION DINOSAUR THRILLER JURASSIC PARK FROM MATSUSHITA ELECTRIC INDUSTRIAL CO'S UNIVERSAL PICTURES THE 70 MILLION SYLVESTER STALLONE ACTION FLICK CLIFFHANGER FROM CAROLCO PICTURES INC AND THE EQUALLY PRICEY ARNOLD SCHWARZENEGGER FILM LAST ACTION HERO FROM SONY CORP'S COLUMBIA PICTURES EACH YEAR I UNREEL THIS WRETCHED FINANCIAL ARITHMETIC AND CLANG ALARM BELLS MR VALENTI SAID COSTS THEY'RE LIKE A FUNGUS ON THE FACE OF OUR INDUSTRY ALWAYS ITCHING BUT NEVER REALLY GOING AWAY EACH YEAR WE APPLY SOME NEW OINTMENT AND EACH YEAR THE FUNGUS GROWS IRONICALLY THE BAD NEWS ABOUT COSTS CAME AS COLUMBIA PICTURES CHAIRMAN MARK CANTON BOASTED IN A SPEECH TO THEATER OWNERS MORE OFTEN TODAY WE'RE MAKING FILMS FOR 15 MILLION THAT WOULD HAVE COST 20 MILLION OR 25 MILLION THREE YEARS AGO WE'VE STOPPED OVERPAYING HE ADDED WE WANT IT BUT ONLY IF THE PRICE IS RIGHT OR IF ARNOLD SCHWARZENEGGER IS IN IT MR CANTON WOULDN'T COMMENT ON THE COST OF MR SCHWARZENEGGER'S LAST ACTION HERO WHICH WILL BE DISTRIBUTED BY COLUMBIA HOWEVER HE DID SAY THAT TRADE PUBLICATIONS' ESTIMATES OF THE FILM'S COSTING MORE THAT 80 MILLION ARE WAY HIGH HOLLYWOOD TOOK IN A BIT MORE MONEY AT THE BOX OFFICE IN 1992 487 BILLION COMPARED WITH 48 BILLION IN 1991 THE THIRDHIGHEST THEATER GROSS IN HISTORY BEHIND RECORD YEARS 1989 AND 1990 THE MPAA REPORTED BUT OF THE 431 MOVIES RELEASED LAST YEAR ONLY 36 EARNED 20 MILLION OR MORE IN FILM RENTALS OR REVENUES RETURNED TO DISTRIBUTORS AFTER THE THEATER OWNERS' SHARES PERHAPS MORE PROBLEMATIC FOR THE INDUSTRY IS THE FACT THAT ADMISSIONS CONTINUED THEIR STEADY DECLINE FALLING 18 FROM 1991 TO 9642 MILLION MOREOVER THE AVERAGE NUMBER OF FILMS SEEN BY MOVIEGOERS DROPPED SINCE 1985 TO 57 ANNUALLY FROM 84 MR VALENTI SAID WHAT'S MORE THE INDUSTRY HAS SEEN A 12 DROP IN TICKETS PURCHASED IN THE LAST TWO YEARS AMONG THE CORE MOVIEGOING AUDIENCE YOUNG PEOPLE AGED 12 TO 29 MR CANTON SAID MR VALENTI SPOKE AT LENGTH ABOUT THE IMPACT THAT THE GENERAL AGREEMENT ON TARRIFS AND TRADE WOULD HAVE ON THE MOVIE INDUSTRY NOTING THAT HOLLYWOOD WHICH PRODUCES 80 OR MORE OF MOVIES SHOWN IN MAJOR OVERSEAS MARKETS HAS BECOME THE VILLAIN IN THE EYES OF MANY EUROPEAN NATIONS WARNING OF HARSH TRADE RESTRICTIONS AGAINST THE EXPORT OF AMERICAN FILMED ENTERTAINMENT HE NOTED THAT FRENCH QUOTAS ON USPRODUCED TELEVISION PROGRAMMING ARE ALREADY BEGINNING TO PINCH US THE MPAA'S POSITION HE SAID IS THAT THESE QUOTAS MUST BE PHASED OUT OVER A NUMBER OF YEARS WE'RE NOT TRYING TO BE GREEDY HE SAID ALL WE WANT IS TO BE FAIR 9303100108 930310 FINANCING BUSINESS ORCHARD SUPPLY HARDWARE STORES CORP ORCHARD SUPPLY HARDWARE STORES CORP SAN JOSE CALIF SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 38 MILLION COMMON SHARES THE HARDWARE CHAIN SAID THREE MILLION SHARES WOULD BE OFFERED IN THE US WITH THE REST OFFERED ABROAD THE OFFERING PRICE IS EXPECTED TO BE BETWEEN 14 AND 16 A SHARE THE COMPANY SAID UNDERWRITERS WILL BE MANAGED BY SHEARSON LEHMAN BROTHERS INC AND MONTGOMERY SECURITIES PROCEEDS WILL BE USED TO REDUCE DEBT AND PAY A PORTION OF ACCRUED DIVIDENDS ON PREFERRED STOCK THE COMPANY SAID 9303100107 930310 INTERNATIONAL BRIEF GENERALE BANK PROFIT CLIMBED 12 IN 1992 ON HIGHER LOAN VOLUME BELGIUM'S GENERALE BANK SAID ITS 1992 CONSOLIDATED PROFIT ROSE 12 TO 1073 BILLION BELGIAN FRANCS 3134 MILLION AS HIGHER LOAN VOLUMES OFFSET REDUCED INTEREST RATE MARGINS THE COMMERCIAL BANK RAISED ITS DIVIDEND 67 TO 320 FRANCS FROM 300 FRANCS GENERALE BANK SAID IT HAD CONSOLIDATED IN ITS INCOME STATEMENT FOR THE FIRST TIME BANQUE GENERALE DU LUXEMBOURG THE LUXEMBOURG UNIT IN WHICH IT HAS A 42 STAKE AND BANQUE DIAMANTAIRE ANVERSOISE A SMALL BELGIAN BANK IN WHICH IT HAS A 37 STAKE THE BANK SAID NARROWER INTEREST RATE PROFIT MARGINS IN 1992 WERE COMPENSATED BY INCREASED VOLUME IN BELGIAN FRANCS AND FOREIGN CURRENCIES PROVISIONS FOR BAD LOANS MEANWHILE WERE 166 BILLION FRANCS UP 14 FROM A YEAR EARLIER THE BANK SAID IT TERMED ITS PROVISION MODERATE GIVEN THE ECONOMIC CIRCUMSTANCES IT ALSO SAID IT HELD GROWTH IN OVERHEAD COSTS ACROSS THE GROUP TO 1 BECAUSE OF TIGHT CONTROLS AT THE PARENT COMPANY AND REDUCED EMPLOYMENT EXPENSES 9303100106 930310 US URGES CURBS ON POWER OF PANELS ON NORTH AMERICAN ENVIRONMENT LABOR BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THAT PROPOSED LABOR AND ENVIRONMENTAL COMMISSIONS INVOLVING MEXICO CANADA AND THE US SHOULDN'T BE ABLE TO LEVY FINES OR SANCTIONS AS ENVIRONMENTALISTS AND LABOR GROUPS HAD HOPED NEGOTIATIONS OVER THE COMMISSIONS ARE TO BEGIN NEXT WEDNESDAY AS PART OF SIDE AGREEMENTS TO THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WILL ELIMINATE TARIFFS AMONG THE US CANADA AND MEXICO OVER 15 YEARS PRESIDENT CLINTON HAS SAID THE DEALS ARE NEEDED TO BOLSTER ENVIRONMENTAL AND LABOR SECTIONS OF THE TRADE PACT DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON SAID AN ENVIRONMENTAL PROTECTION COMMISSION SHOULD HAVE THE POWER TO PROVIDE REMEDIES INCLUDING MONEY DAMAGES AND THE LEGAL POWER TO STOP POLLUTION WHILE A LABOR COMMISSION SHOULD HAVE SIMILAR AUTHORITY BUT AT A SENATE FINANCE COMMITTEE HEARING YESTERDAY MR KANTOR SAID THE COMMISSIONS SHOULDN'T HAVE THE POWER TO GO IN AND ENFORCE LAWS IN THE US OR GO IN AND ENFORCE LAWS IN MEXICO US ENVIRONMENTAL GROUPS HAVE PUSHED FOR A TRINATIONAL PANEL THAT COULD ENFORCE ENVIRONMENTAL STANDARDS IN MEXICO BUT MEXICAN GOVERNMENT OFFICIALS HAVE SAID THEY WOULD REFUSE TO SIGN ANY AGREEMENT THAT INFRINGED ON THEIR SOVEREIGNTY SEPARATELY CONGRESSIONAL AIDES SAID THE CLINTON ADMINISTRATION PLANS TO ASK CONGRESS SOON FOR AN APPROXIMATELY 10MONTH EXTENSION IN FASTTRACK AUTHORITY TO NEGOTIATE A WORLD TRADE PACT UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN GENEVA MR KANTOR PLANS TO GO TO EUROPE ON MARCH 27 TO PRESS GATT NEGOTIATIONS UNDER FASTTRACK AUTHORITY WHICH EFFECTIVELY LAPSED MARCH 2 CONGRESS AGREES TO A YESORNO VOTE ON TRADE PACTS BUT NOT TO CHANGE THEM THROUGH AMENDMENTS TRADE TALKS DON'T PROCEED SERIOUSLY WITHOUT THIS AUTHORITY BECAUSE NEGOTIATORS KNOW THAT CONGRESS COULD SIMPLY REWRITE ANY DEAL THAT WAS STRUCK CONCERNING THE NORTH AMERICAN TRADE PACT THE ADMINISTRATION'S STRATEGY IS FIRST OF ALL TO STRENGTHEN THE RIGHTS OF MEXICAN CITIZENS AND ENVIRONMENTAL GROUPS TO SUE IN MEXICAN COURTS OVER ENVIRONMENTAL PROBLEMS MR KANTOR SAID THAT MEXICO HAD ALREADY AGREED UNDER THE ACCORD TO MAKE CHANGES TO ITS JUDICIAL SYSTEM TO PROTECT PATENT RIGHTS AND OTHER INTELLECTUAL PROPERTY AND MIGHT BE PERSUADED TO MAKE SIMILAR CHANGES TO PROTECT THE ENVIRONMENT THE SIERRA CLUB RECENTLY URGED SUCH A NEGOTIATING STRATEGY THE ENVIRONMENTAL COMMISSION MR KANTOR SAID WOULD WORK LARGELY BY MORAL SUASION HIGHLIGHTING ENVIRONMENTAL PROBLEMS IN EACH OF THE COUNTRIES THE MERE FACT OF MAKING PROBLEMS PUBLIC USUALLY PERSUADES THE GOVERNMENT TO REACT PROPERLY HE SAID IN CASE MEXICO OR ANY OTHER PARTY TO THE FREETRADE ACCORD DIDN'T ACT ON REPEATED ENVIRONMENTAL VIOLATIONS MR KANTOR SAID THERE ARE DISCUSSIONS WITHIN THE ADMINISTRATION OF HOW THE THREE GOVERNMENTS NOT THE ENVIRONMENTAL COMMISSION SHOULD RESPOND TRADE OFFICIALS SAID THE ADMINISTRATION IS CONSIDERING A SERIES OF OPTIONS WHICH WOULD BE THE SUBJECT OF NEGOTIATIONS WITH MEXICO AND CANADA THE POSSIBILITIES INCLUDE MILD ACTIONS SUCH AS HAVING THE THREE GOVERNMENTS CONSULT OVER ENVIRONMENTAL INFRACTIONS OR HAVING THE GOVERNMENTS EMPANEL AN ARBITRATION BOARD TO ADJUDICATE THE DISPUTE TOUGHER ACTION COULD INVOLVE UNILATERALLY IMPOSING TARIFFS AS PART OF AN UNFAIR TRADEPRACTICES CASE 9303100104 930310 ECONOMY STIMULUS BILL IS APPROVED BY HOUSE PANEL MEASURE FOR 163 BILLION CLEARS DESPITE GOP'S BID FOR OFFSETTING CUTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROPRIATIONS COMMITTEE APPROVED AN ALMOST 163 BILLION ECONOMICSTIMULUS BILL AFTER BEATING BACK REPUBLICAN ATTEMPTS TO TIGHTEN REPORTING ON THE PROPOSED SPENDING AND FORCE OFFSETTING CUTS FROM GOVERNMENT PROGRAMS DEMOCRATS HOPE TO MOVE THE MEASURE TO THE FLOOR NEXT WEEK IN TANDEM WITH THE CLINTON ADMINISTRATION'S FIVEYEAR DEFICITREDUCTION PLAN BUT AS THE ECONOMY HAS IMPROVED MODERATES AND CONSERVATIVES IN THE PARTY ARE INCREASINGLY WARY OF THE NEW SPENDING AT A TIME WHEN THEY ARE BEING ASKED TO VOTE FOR LARGE TAX INCREASES AT THE MOMENT THE STIMULUS BILL IS STILL INTACT SAID HOUSE SPEAKER THOMAS FOLEY ACKNOWLEDGING DIVISIONS IN HIS PARTY CAUCUS AND WITH THE IMPROVED EMPLOYMENT STATISTICS ANNOUNCED LAST FRIDAY SENATE LIBERALS CONCEDE THAT SUPPORT THERE HAS WEAKENED I THINK IT WAS STRONGER LAST WEEK SAID SENATE LABOR COMMITTEE CHAIRMAN EDWARD KENNEDY D MASS IF YOU LOOK AT THE TOTALITY WE'RE STILL ONLY GETTING A SEVENTH OF THE JOBS WE'VE GOTTEN BACK IN A NORMAL RECOVERY BUT UNTIL PEOPLE LOOK AT THAT THEY HAVE A FALSE SENSE OF SECURITY THAT THINGS ARE BETTER SOUTHERN CONSERVATIVES WHO MET WITH OFFICIALS AT THE WHITE HOUSE LATE YESTERDAY HAVE BEEN MOST OUTSPOKEN IN EXPRESSING THEIR RESERVATIONS BUT THE ADMINISTRATION FACES DIFFICULTIES IN MIDWEST FARM STATES AS WELL WHERE UNEMPLOYMENT IS LESS OF A FACTOR AND THERE IS GRASSROOTS POLITICAL CONCERN ABOUT THE IMPACT OF PROPOSED ENERGY TAXES THE UNHAPPINESS HAS FED A ROUND OF POLITICAL BARGAINING IN WHICH INFLUENTIAL ETHANOL INTERESTS HOPE TO WIN CONCESSIONS FOR THEMSELVES UNDER THE NEW TAX BUT SUCH YOUNG DEMOCRATS AS NEBRASKA SEN ROBERT KERREY WHILE SUPPORTIVE OF THE PRESIDENT EXPRESS SERIOUS MISGIVINGS ABOUT THE STIMULUS BILL GIVEN THE REACTION AMONG VOTERS AT HOME IN ITS DELIBERATIONS YESTERDAY THE APPROPRIATIONS PANEL MADE ONLY MODEST CHANGES TO THE ADMINISTRATION'S INITIAL REQUEST FOR THE HOUSE THE BILL HAS BECOME A TEST OF LOYALTY NOT ONLY TO THE PRESIDENT BUT TO THE COMMITTEE'S NEW CHAIRMAN REP WILLIAM NATCHER THE STRAIGHTLACED KENTUCKIAN BEGAN WITH A LONG RECITATION OF HIS SERVICE UNDER NINE PRESIDENTS ENDING WITH THIS ADMONITION TO THE REPUBLICANS YOUR COUNTRY COMES FIRST AND YOUR PARTY COMES SECOND APART FROM THE MORE THAN 16 BILLION IN NEW APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPT 30 THE MEASURE WOULD RELEASE AN ADDITIONAL 324 BILLION FROM TRUST FUNDS FOR HIGHWAY MASS TRANSIT AND AIRPORT PROJECTS AND PROVIDE MORE THAN 33 BILLION IN NEW CREDIT LARGELY FOR SMALL BUSINESSES THESE SPENDING COMMITMENTS ARE INTENDED TO DOVETAIL WITH TAX BENEFITS INCLUDING A TEMPORARY INVESTMENT TAX CREDIT TO BE ENACTED LATER THIS YEAR IN DOCUMENTS RELEASED YESTERDAY THE WHITE HOUSE SAID THE ENTIRE PROGRAM WILL CREATE THE EQUIVALENT OF 409139 FULLTIME JOBS IN FISCAL 1994 WHICH BEGINS NEXT OCT 1 THOUGH MUCH OF THE SPENDING INCLUDING ALMOST 19 BILLION FOR PELL GRANTS FOR LOWERINCOME COLLEGE STUDENTS FITS MR CLINTON'S LONGERRANGE INVESTMENT STRATEGY THE ADMINISTRATION PUT A PREMIUM ON FAST SPENDING PROJECTS AND ATTACHED USE OR LOSE LANGUAGE THAT WOULD PENALIZE STATES THAT DON'T COMMIT THE FUNDS PROMPTLY THE ISSUE IS MOST PERTINENT IN THE CASE OF PUBLIC WORKS PROJECTS AND UNDER PRESSURE FROM THE HOUSE COMMITTEE THE WHITE HOUSE AGREED TO EXTEND THE PERIOD TO 90 DAYS FROM 60 FOR HIGHWAY AND MASSTRANSIT WORK REPUBLICANS SOUGHT UNSUCCESSFULLY YESTERDAY TO STRIP THE USE OR LOSE LANGUAGE ENTIRELY BUT MOST OF THEIR PROPOSED AMENDMENTS FOCUSED ON INCREASING ACCOUNTABILITY FOR THE LARGER PACKAGE AND BRINGING ATTENTION TO THE FACT THAT THE SPENDING WILL BE DEFICITFINANCED THOUGH THE ADMINISTRATION HAS RESPECTED THE BUDGET CAP FOR TOTAL APPROPRIATIONS IN FISCAL 1993 IT IS USING ITS EMERGENCY POWERS TO CIRCUMVENT RULES REQUIRING THE BILL TO BE COUNTED AGAINST THE SPENDING CEILING FOR FISCAL 1994 AND IN AREAS SUCH AS EDUCATION AND RESEARCH MANY OF THE EXPENDITURES SERVE TO BUILD UP A RESERVOIR OF FUNDS IN ANTICIPATION OF CUTS AHEAD THE EMERGENCY I CAN'T BUY I DON'T THINK ANYONE CAN COMPLAINED INDIANA REP JOHN MYERS A SENIOR REPUBLICAN ON THE PANEL MINDFUL OF THIS CRITICISM DEMOCRATS HAVE BEEN CAREFUL TO INCLUDE THE 4 BILLION NEEDED NEXT MONTH BY THE FEDERAL UNEMPLOYMENT TRUST FUND THAT MONEY IS REQUIRED TO COVER THE COSTS OF EXPANDED JOBLESS BENEFITS APPROVED BY CONGRESS ONLY LAST WEEK BUT RATHER THAN PROVIDE THE MONEY AT THAT TIME THE LEADERSHIP DECIDED TO KEEP THE FUNDS IN THE STIMULUS PACKAGE IN ORDER TO GAIN POLITICAL LEVERAGE NOW WHATEVER THE ECONOMIC ARGUMENTS SURROUNDING THE PACKAGE THE RUSH OF SPENDING CONTRASTS WITH THE TIGHT RESTRICTIONS ANTICIPATED FOR FUTURE YEARS IN THE BUDGET RESOLUTIONS PENDING IN CONGRESS THE HOUSE PLAN TO BE TAKEN UP NEXT WEEK WOULD CUT TOTAL APPROPRIATIONS TO 5007 BILLION IN FISCAL 1994 COMPARED WITH THE CAP OF ABOUT 516 BILLION THIS YEAR ACCORDING TO PRELIMINARY ESTIMATES AND THOUGH APPROPRIATIONS WOULD GROW TO 5088 BILLION IN FISCAL 1995 THAT INCREASE WOULD BE LESS THAN 2 WHILE THE ADMINISTRATION SPEAKS OF ACROSSTHEBOARD CUTS TO PROTECT ITS OWN INITIATIVES THESE CAPS ARE SURE TO SPUR COMPETITION BETWEEN THE PRESIDENT'S AMBITIOUS INVESTMENT PROGRAM AND PENTAGON SPENDING 9303100103 930310 FINANCING BUSINESS GREAT COUNTRY BANK GREAT COUNTRY BANK ANSONIA CONN SAID IT PLANS A RIGHTS OFFERING OF AS MANY AS 22 MILLION SHARES AT 2875 A SHARE IN ORDER TO IMPROVE ITS CAPITAL THE OFFERING WILL BEGIN ON OR ABOUT MARCH 24 AND END 30 DAYS LATER SHAREHOLDERS OF RECORD MARCH 19 WILL BE GIVEN THE FIRST OPPORTUNITY TO BUY SHARES THEY MAY BUY SHARES EQUAL TO THE NUMBER THEY ALREADY OWN SHARES THAT AREN'T PURCHASED BY CURRENT SHAREHOLDERS WILL BE OFFERED TO THE PUBLIC THE BANK SAID IF THE OFFERING IS OVERSUBSCRIBED THE BANK'S BOARD MAY AUTHORIZE SALE OF AN ADDITIONAL 329133 SHARES THE BANK HAS HIRED THE INVESTMENTBANKING FIRM LYONS ZOMBACK & OSTROWSKI INC OF NEW YORK TO ADVISE IT ON THE OFFERING AND ADDED THAT IT ISN'T USING A BROKER OR UNDERWRITER FOR THE OFFERING 9303100102 930310 WESTINGHOUSE DEBT OF 51 BILLION IS DOWNGRADED BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP LOWERED ITS RATING ON 51 BILLION IN DEBT OF WESTINGHOUSE ELECTRIC CORP AND ITS CREDIT UNIT CITING DECLINING EARNINGS IN THE COMPANY'S DEFENSE BUSINESS AND BIG WRITEDOWNS TAKEN LAST FALL BY THE CREDIT UNIT S&P REDUCED ITS RATING ON SUBORDINATED DEBT AND PREFERRED STOCK TO TRIPLEB MINUS THE LOWEST LEVEL AT WHICH DEBT IS CONIDERED INVESTMENT GRADE FROM TRIPLEBPLUS SENIORDEBT RATINGS WERE CUT TO TRIPLEB FROM SINGLEAMINUS AND ON COMMERCIAL PAPER TO SINGLEA3 FROM SINGLEA2 THE RATING AGENCY HAD BEEN PONDERING A DOWNGRADE SINCE NOVEMBER AND A WESTINGHOUSE SPOKESMAN SAID THE ACTION APPARENTLY WASN'T PROMPTED BY ANY IMMEDIATE DEVELOPMENTS THE AGENCY SAID WESTINGHOUSE'S BALANCE SHEET IS STRETCHED BY CASH TRANSFERS TO ITS CREDIT UNIT WESTINGHOUSE CREDIT CORP AFTER A 11 BILLION WRITEDOWN FOR BAD LOANS IN NOVEMBER MOREOVER THE AGENCY SAID FUNDING AND LIQUIDITY IS DEPENDENT UPON THE COMPANY'S ABILITY TO EXECUTE ANTICIPATED ASSET SALES ALTHOUGH IT ADDED THAT PITTSBURGHBASED WESTINGHOUSE HAS ENOUGH CASH SOURCES TO FUND CURRENT NEEDS S&P SAID RATINGS COULD BE RAISED AFTER WESTINGHOUSE AS PLANNED SELLS THE CREDIT UNIT AND SEVERAL OTHER BUSINESSES TO REDUCE MORE THAN 5 BILLION IN BANK DEBT AND IT SAID THE CREDIT UNIT'S ASSETS APPEAR TO BE PROPERLY VALUED AFTER LAST FALL'S WRITEDOWNS SEPARATELY IN A PROXY STATEMENT WESTINGHOUSE DISCLOSED A MULTIMILLIONDOLLAR PAY PACKAGE FOR ROBERT WATSON A GENERAL ELECTRIC CO VETERAN HIRED TO MANAGE THE SALE OF ITS TROUBLED CREDIT UNIT THE PROXY REPORT SAID MR WATSON WHO HAD BEEN RUNNING TRANSAMERICA CORP'S COMMERCIALFINANCE UNIT SINCE 1990 RECEIVED TOTAL COMPENSATION OF 4320000 IN 1992 MR WATSON HIRED IN JUNE RECEIVED 304545 IN SALARY 300000 IN INCENTIVE BONUS AND 400000 AS A SIGNING BONUS HE ALSO RECEIVED OPTIONS VALUED AT 452000 AND RESTRICTED STOCK AWARDS VALUED IN JUNE AT 2860000 IN ADDITION MR WATSON IS ELIGIBLE FOR A 2 MILLION LONGTERM BONUS IN 1994 DEPENDING ON WESTINGHOUSE'S PERFORMANCE AND IF MR WATSON IS DISABLED OR REMOVED FROM HIS JOB HE WOULD RECEIVE THROUGH 1997 HIS SALARY INCLUDING A GUARANTEED 10 ANNUAL PAY INCREASES AND A BONUS OF 300000 PER YEAR HE WOULD ALSO BE ABLE TO KEEP HIS STOCK OPTIONS THE COMPANY SAID THAT THE PAY PACKAGE WAS NECESSARY TO ATTRACT AND MOTIVATE THE CALIBER OF EXECUTIVE TALENT REQUIRED FOR THE JOB AND THAT IT DUPLICATED HIS PREVIOUS PAY WHILE PROVIDING FOR PERFORMANCE AND CAREER RISK ASSOCIATED WITH HIS NEW POSITION 9303100101 930310 ENTERPRISE SMALL SOFTWARE COMPANIES CRACK THE EDUCATIONAL MARKET CHILDISH PURSUITS PAY AT BRODERBUND HOME OF CARMEN SANDIEGO BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL NOVATO CALIF IN ORDER TO ADVANCE THE CAUSE OF EDUCATION AND TECHNOLOGY MARK SCHLICHTING HAS DANCED LIKE A TURTLE A SELFDESCRIBED CARTOON ADDICT MR SCHLICHTING SAYS HE WAS JUST TRYING TO FIGURE OUT WHAT KIND OF A STRIDE THE LEAD CHARACTER SHOULD HAVE IN A NEW COMPUTER VERSION OF THE TORTOISE AND THE HARE AS A DESIGNER AT BRODERBUND SOFTWARE INC HE DIRECTS A STAFF OF FIVE ANIMATORS AND TWO SOUND DESIGNERS WHO CREATE LIVING BOOKS COMPUTER PROGRAMS THAT TELL STORIES TO CHILDREN IN AN OFFICE COVERED WITH PICTURES OF A BONGOPLAYING BEAVER AND OTHER CHARACTERS HIS GROUP BRAINSTORMS FOR IDEAS HE POINTS TO ONE SCENE UNDER DEVELOPMENT WHERE THE HARE ZIPS PAST HOUSES WE MIGHT MAKE THESE WINDOWS SING HE SAYS WHEN A DOG APPROACHES THIS FIRE HYDRANT THE HYDRANT MIGHT JUMP UP AND SQUIRT THE DOG HE SMILES ADDING AND MY PARENTS SAID ALL THAT CARTOON WATCHING WOULDN'T PAY OFF SUCH CHILDISH PURSUITS HAVE PAID OFF HANDSOMELY FOR BRODERBUND WHICH HAS BECOME A BIG PLAYER IN THE SMALL BUT GROWING MARKET FOR CHILDREN'S EDUCATIONAL SOFTWARE THE COMPANY WHICH WENT PUBLIC IN 1991 AT 11 A SHARE NOW TRADES AT 41 A SHARE IN THE OVERTHECOUNTER MARKET THE CORPORATE ATMOSPHERE AT BRODERBUND DOESN'T ENCOURAGE SERIOUSNESS IN ONE DEPARTMENT A BLOWUP SHARK IN A TIE INFLATABLE CRAYONS AND A MOCKUP OF THE STARSHIP ENTERPRISE HANG FROM THE CEILING FOR INSPIRATION THE ANIMATION GROUP GOES ON FIELD TRIPS TO SEE ALADDIN AND THE LITTLE MERMAID THE COMPANY CAFETERIA SERVES SUSHI AND A YOGA CLASS IS OFFERED TWICE A WEEK BRODERBUND'S TWO MOST POPULAR PRODUCT LINES ARE PRINT SHOP WHICH ALLOWS ADULTS AND CHILDREN TO MAKE GREETING CARDS BANNERS AND OTHER ITEMS AND CARMEN SANDIEGO WHICH FEATURES A JEWEL THIEF WHO TRAVELS AROUND THE WORLD AND THROUGH TIME CARMEN PLAYERS GENERALLY AGED 10 TO 14 LEARN ABOUT GEOGRAPHY AND HISTORY AS THEY TRY TO APPREHEND HER SHE IS THE FIRST SOFTWARE CHARACTER TO BECOME SO POPULAR THAT SHE HAS SPAWNED A LINE OF BOOKS AND A SERIES ON PUBLIC BROADCASTING SERVICE STATIONS RECENTLY BRODERBUND HAS TURNED MORE OF ITS ATTENTION TO YOUNGER CONSUMERS ITS EARLY LEARNING PRODUCTS AIMED AT THREE TO 10 YEAR OLDS HAVE BECOME THE COMPANY'S FASTEST GROWING SEGMENT LAST YEAR ACCOUNTING FOR ABOUT 14 OF TOTAL REVENUE IN ADDITION TO POPULAR PROGRAMS LIKE KID PIX THE PLAYROOM AND THE TREEHOUSE BRODERBUND HAS INTRODUCED A LIVING BOOK SERIES THAT ALLOWS CHILDREN TO CHOOSE BETWEEN HAVING A NARRATOR READ A STORY AND ANIMATING ELEMENTS IN THE SCENES ON EACH PAGE IN ARTHUR'S TEACHER TROUBLE BASED ON A BOOK BY MARC BROWN A YOUNG AARDVARK STRUGGLES WITH HIS TOUGH INSTRUCTOR MR RATBURN ON ONE PAGE ARTHUR'S MOTHER SEEKING TO CHEER HIM UP OFFERS FRESHLY BAKED COOKIES IF A CHILD CLICKS ON THE COOKIES THEY GET UP AND SING CLICK ON THE ROLLING PIN AND IT HURLS ITSELF OFF THE TABLE WITH A SCREAM CLICK ON A BAG OF FLOUR AND AN ARROW SHOOTS ACROSS THE ROOM AND HITS THE BAG WHICH BEGINS MOANING AND THEN FALLS OFF THE TABLE IN ADDITION TO SIMPLY TEACHING CHILDREN COMPUTER SKILLS MR SCHLICHTING SAYS THAT LIVING BOOKS MAKE THEM ACTIVE PARTICIPANTS IN A STORY NOT JUST PASSIVE LISTENERS THAT MAKES ALL THE DIFFERENCE HE SAYS KIDS CAN ALSO WORK ON LANGUAGE AND READING SKILLS BY CLICKING ON A WORD OR THE ENTIRE TEXT AND CHOOSE TO HEAR THE STORY READ IN SPANISH THE SERIES IS A GAMBLE TO USE THE PROGRAMS CUSTOMERS MUST HAVE A CDROM PLAYER WHICH COSTS AROUND 400 BUT THE DEVICES ARE INCREASING IN POPULARITY AND BRODERBUND EXPECTS THEIR USE TO RISE SHARPLY WITHIN THE NEXT FIVE YEARS ANOTHER HURDLE WHILE THE SOUND AND ANIMATION QUALITY OF THE COMPUTER BOOKS IS HIGH SO IS THE PRICE BETWEEN 50 AND 60 PETER SCISCO EDITOR OF KIDS & COMPUTERS A NEW MAGAZINE SAYS HIS THREEYEAROLD AND FIVEYEAROLD LOVE THE INTERACTIVITY OF THE COMPUTER STORYBOOK PROGRAMS BUT HE ADDS THEY LIKE SITTING DOWN IN MY LAP READING BOOKS TOO AND A BOOK COSTS 495 THOUGH MANY PRODUCTS ARE DEVELOPED IN HOUSE THE COMPANY ALSO ACTS AS A TALENT SCOUT SEEKING OUT AND REFINING PROGRAMS CREATED BY OTHERS ITS KID PIX PROGRAM WHICH ALLOWS CHILDREN TO PAINT PICTURES ON THE COMPUTER SCREEN AND ERASE THEM BY BLOWING THEM UP WITH A FIRECRACKER WAS DESIGNED BY AN ART PROFESSOR IN OREGON FOR HIS OWN SON AND ORIGINALLY DISTRIBUTED ON THE SHAREWARE NETWORK FOR COMPUTER BUFFS A PROGRAM CALLED THE TREEHOUSE THAT FEATURES POSSUMS WHO TEACH MATH MUSIC AND SCIENCE WAS CREATED BY A PAIR OF EDUCATORS BRODERBUND RELEASED 28 NEW PRODUCTS IN ITS FISCAL YEAR ENDED AUG 31 1992 AND ANOTHER 18 SO FAR IN FISCAL 1993 SOME OF THOSE ARE DISTRIBUTED FOR OTHER SMALL SOFTWARE COMPANIES THROUGH BRODERBUND'S AFFILIATEDLABELS PROGRAM WHICH ACCOUNTS FOR ABOUT A FIFTH OF SALES FOR TESTING BRODERBUND RELIES ON AN INFORMAL NETWORK OF ITS EMPLOYEES' OFFSPRING AND LOCAL SCHOOLCHILDREN KIDS TELL YOU WHEN GAGS AREN'T FUNNY OR THEY WENT ON TOO LONG OR IF THEY WANT MORE ACTION SAYS MR SCHLICHTING DURING A TEST AT ONE PRESCHOOL A FIVEYEAROLD COMPLAINED THERE'S JUST NO CHALLENGE PLAY TESTERS AS THE AD HOC REVIEWERS ARE CALLED ARE MORE LIKELY TO ASK DESIGNERS TO ADD THINGS THAN TO TAKE THINGS OUT ONE PROGRAM FEATURES A DOG ACTING AS A LIFEGUARD WHEN CHILDREN CLICK ON THE DOG HE BLOWS A WHISTLE BUT IN TESTING CHILDREN KEPT CLICKING ON THE LIFEGUARD'S CHAIR TRYING TO GET IT TO DO SOMETHING TOO NOW THE CHAIR KICKS UP ITS LEGS AND WHINNIES LIKE A HORSE WHEN DEMONSTRATING AN ARTS AND CRAFTS PROGRAM CALLED KID CUTS TO FOURTH GRADERS DESIGNERS WERE AFRAID IT WAS TOO GIRLCENTERED BECAUSE ALONG WITH MASKS AND PUZZLES IT FEATURED FIGURES THAT CHILDREN COULD MAKE INTO PAPER DOLLS BOYS WERE UNIMPRESSED BY CUTOUTS OF A TIGER AND A KNIGHT INTENDED TO APPEAL TO THEM BUT EIGHT BOYS RAISED THEIR HANDS WHEN ASKED IF THEY WOULD PLAY WITH ECOBOY AN ENVIRONMENTALLY CONSCIOUS SKATEBOARDER THERE ARE OTHER DIFFERENCES BETWEEN THE SEXES BOYS WANT MORE DIRECTED ACTIVITY WHILE GIRLS ARE MORE INTERESTED IN EXPLORATION SAYS HILARY NATION A PRODUCT MANAGER SPELUNX AND THE CAVES OF MR SEUDO A NONCOMPETITIVE PROGRAM THAT STRESSES EXPLORATION TESTED ESPECIALLY WELL WITH GIRLS IT ALLOWS PLAYERS TO EXPLORE CAVES AND DISCOVER SUCH ACTIVITIES AS FEEDING A LIZARD WRITING ENTRIES IN A DIARY AND PLAYING CATCH THE TOAST WITH A YODELER IN MARKETING TO MOM AND DAD BRODERBUND TOUTS THE CONFIDENCE AND KNOWLEDGE THAT EVEN LITTLE ONES CAN GAIN FROM ITS PROGRAMS STILL SOME PARENTS MAY QUESTION THE EDUCATIONAL VALUE OF A GALLOPING LIFEGUARD STAND WE DESIGN PRODUCTS TO COMPETE WITH LEISURE ACTIVITIES LIKE NINTENDO OR BASEBALL NOT WITH HOMEWORK SAYS BILL MCDONAGH VICE PRESIDENT OF FINANCE WE'RE TRYING TO CAPTURE FREE TIME SO WE HAVE TO STRESS THE ENTERTAINMENT ASPECT PARENTS MIGHT PREFER THAT THEIR KIDS READ A ROBERT LOUIS STEVENSON BOOK BUT IF THE CHOICE IS BETWEEN EDUCATIONAL SOFTWARE AND TV THEY'LL CHOOSE THE COMPUTER SEE RELATED ARTICLE GAMELIKE LOOK FEEL MAKE LEARNING EASIER FOR KIDS TO SWALLOW WSJ MARCH 10 1993 TOPSELLING EDUCATIONAL SOFTWARE RANKED BY SALES FOR CHRISTMAS 1992 UNIT TITLE MANUFACTURER SALES IN THOUSANDS WHERE IN THE WORLD IS CARMEN SANDIEGO BRODERBUND 787 WHERE IN THE USA IS CARMEN SANDIEGO BRODERBUND 597 NEW MATH BLASTER PLUS DAVIDSON 283 OREGON TRAIL MECC 264 KID PIX BRODERBUND 202 WHERE IN TIME IS CARMEN SANDIEGO BRODERBUND 199 MAVIS BEACON SOFTWARE TEACHES TYPING TOOLWORKS 185 READER RABBIT 2 LEARNING CO 184 MARIO TEACHES TYPING INTERPLAY 179 SOURCE PC RESEARCH 9303100100 930310 DE BEERS DIVIDEND IS CUT 29 AS PROFIT FOR 1992 FELL 29 SPECIAL TO THE WALL STREET JOURNAL JOHANNESBURG SOUTH AFRICA DIAMOND COMPANY DE BEERS CONSOLIDATED MINES LTD AND ITS SWISSBASED DE BEERS CENTENARY AG REDUCED THE GROUP'S DIVIDEND FOR THE SECOND TIME IN POSTWAR HISTORY BUT THE CUT WASN'T AS STEEP AS EXPECTED THE GROUP CUT ITS 1992 DIVIDEND 29 TO 791 CENTS A SHARE FROM THE PREVIOUS YEAR'S 1121 CENTS THE GROUP ALSO REPORTED ITS EARNINGS FOR THE YEAR FELL 29 TO 757 MILLION FROM 107 BILLION IN 1991 PERSHARE EARNINGS FELL TO 199 CENTS FROM 281 CENTS A YEAR EARLIER THE DIVIDEND CUT HAD BEEN EXPECTED SINCE AUGUST WHEN IN ANNOUNCING THE GROUP'S INTERIM RESULTS CHAIRMAN JULIAN OGILVIE THOMPSON SAID DEPRESSED WORLD ECONOMIES HAD LED TO AN OVERSUPPLY OF DIAMONDS IN THE MARKET MR OGILVIE THOMPSON MONDAY SAID DE BEERS WOULD CONTINUE TO WORK ITS MINES AT A LOWER CAPACITY THIS YEAR HE ALSO SAID THE GROUP'S 15 INCREASE IN ROUGH DIAMOND PRICES IN FEBRUARY ITS FIRST IN ALMOST THREE YEARS HAD BEEN READILY ABSORBED BY THE MARKET DE BEERS MARKETS ABOUT 80 OF THE WORLD'S DIAMONDS BUT THE BREAKUP OF THE SOVIET UNION AND INCREASED ILLEGAL DIAMOND MINING AND SMUGGLING IN ANGOLA HAVE THREATENED THE GROUP'S ABILITY TO CONTROL SUPPLY AND DEMAND 9303100099 930310 BUSINESS BRIEF PATHE TECHNOLOGIES INC MIDWEST SPRING PURCHASE IN STOCK SWAP IS COMPLETED PATHE TECHNOLOGIES INC IRVINGTON NJ SAID IT COMPLETED ITS ACQUISITION OF MIDWEST SPRING MANUFACTURING CO A PRIVATELY HELD MAKER OF INDUSTRIAL SPRINGS IN A STOCK SWAP PATHE SAID IT ISSUED 72 MILLION RESTRICTED COMMON SHARES INCLUDING 949520 WITHOUT VOTING RIGHTS AND WILL ISSUE ONE PATHE CLASS B WARRANT FOR EACH THREE COMMON SHARES OF PATHE HELD EACH WARRANT ALLOWS THE HOLDER TO BUY ONE COMMON SHARE AT AN EXERCISE PRICE OF 2 ADDITIONAL CLASS C AND D WARRANTS WILL BE ISSUED TO CERTAIN MIDWEST PREFERRED STOCKHOLDERS THE AGREEMENT LEAVES C STEPHEN CLEGG CHIEF EXECUTIVE OF MIDWEST SPRING AND A DIRECTOR AND SHAREHOLDER OF BOTH COMPANIES WITH CONTROL OF 52 OF PATHE'S 96 MILLION COMMON SHARES AND 57 VOTING CONTROL PATHE PRESIDENT RICHARD G REECE SAID MR CLEGG WILL REMAIN CHIEF EXECUTIVE OF MIDWEST SPRING ROMEOVILLE ILL PATHE ALSO BOOSTED THE SIZE OF ITS BOARD TO 10 DIRECTORS FROM SEVEN 9303100098 930310 BUSINESS BRIEF CLEARLY CANADIAN BEVERAGE CORP MARKETING PACT IS REACHED WITH PEPSICO SUBSIDIARY CLEARLY CANADIAN BEVERAGE CORP VANCOUVER BRITISH COLUMBIA SAID PEPSICOLA CANADA LTD AGREED TO MARKET AND DISTRIBUTE CLEARLY CANADIAN'S PRODUCTS IN CANADA CLEARLY CANADIAN SAID PEPSICOLA CANADA A TORONTOBASED SUBSIDIARY OF PEPSICO PURCHASE NY CONTRACTED WITH TWO OF CLEARLY CANADIAN'S EXISTING DISTRIBUTORS TO PURCHASE THE COMPANY'S SOFT DRINK PRODUCTS FOR RESALE PEPSICOLA CANADA BEGAN DISTRIBUTING THE BEVERAGES IN EASTERN CANADA LAST WEEK AND WILL START DISTRIBUTION IN WESTERN CANADA APRIL 1 CLEARLY CANADIAN SAID THE AGREEMENT COULD GENERATE A SUBSTANTIAL INCREASE IN THE COMPANY'S SALES FROM 1992 LEVELS IT SAID 9303100097 930310 WASTE MANAGEMENT SEES FLAT REVENUE FROM RECYCLING BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE MANAGEMENT INC ACKNOWLEDGING ITS POOR PERFORMANCE IN THE RECYCLING BUSINESS CONFIRMED IT IS BIDDING VERY CAUTIOUSLY ON NEW RECYCLING CONTRACTS AND SAID 1993 REVENUE IN THE ONCEBOOMING SEGMENT WOULD AT BEST MATCH LAST YEAR'S LEVEL WHILE RECYCLING ACCOUNTED FOR JUST 250 MILLION OF LAST YEAR'S OVERALL REVENUE OF 866 BILLION AT WASTE MANAGEMENT THE SERVICE IS BY FAR ITS MOST POPULAR AMONG RESIDENTIAL CUSTOMERS WHAT'S MORE THE FORECAST SHOWS HOW DIFFICULT IT IS FOR A TRADITIONAL HAULANDDUMP COMPANY TO ADAPT TO CHANGING CONSUMER PREFERENCES THE NATION'S NO 1 TRASH HAULER INITIALLY ENTHUSIASTIC ABOUT GROWING CONSUMER SUPPORT FOR RECYCLING HAS BECOME INCREASINGLY DISENCHANTED WITH THE BUSINESS AS PRICES FOR RECYCLABLE MATERIALS PLUMMET AND GOODS MADE FROM RECYCLED MATERIALS COME TO MARKET ONLY SLOWLY WE ARE BEING CAUTIOUS SAID A SPOKESMAN FOR WASTE MANAGEMENT BASED IN OAK BROOK ILL WE WANT TO MAKE SURE THE PROGRAMS WE UNDERTAKE HAVE RETURNS ON INVESTMENT WASTE MANAGEMENT HAS SUFFERED LOSSES ON OLDER CONTRACTS WITH MUNICIPALITIES THAT EXPOSED THE HAULER TO THE RISK OF FALLING PRICES FOR NEWSPRINT GLASS ALUMINUM AND PLASTICS AS RECENTLY AS ONE WEEK AGO WASTE MANAGEMENT HAD REFUSED TO DISCLOSE ITS REVENUE FROM RECYCLING BUT MEETING WITH SECURITIES ANALYSTS FRIDAY IN NEW YORK THE COMPANY DISCLOSED THE 250 MILLION FIGURE AS PART OF AN EFFORT TO SHOW HOW SMALL THE TROUBLED BUSINESS IS IN RELATION TO ITS OVERALL GARBAGE BUSINESS WHICH ACCOUNTS FOR ABOUT HALF OF THE COMPANY'S REVENUE WASTE MANAGEMENT SHARES WHICH WERE QUOTED IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 3875 UP 75 CENTS HAVE BEEN DEPRESSED BY LOWERTHANEXPECTED FOURTHQUARTER RESULTS AND THE ABSENCE THUS FAR OF A GENERAL TURNAROUND IN THE ECONOMY THAT WOULD INCREASE HAULING AND DISPOSAL VOLUMES BY THE END OF 1992 WASTE MANAGEMENT SAID ITS RECYCLING BUSINESS WAS DOING SLIGHTLY BETTER THAN BREAKING EVEN AFTER REGULARLY LOSING MONEY SINCE AT LEAST 1989 ABOUT 100 MILLION OF THE RECYCLING REVENUES IS FROM COLLECTION FEES 100 MILLION FROM THE SALE OF MATERIALS COLLECTED AND 50 MILLION FOR SORTING AND PROCESSING DONE AT THE COMPANY'S 125 PLANTS EVEN WITH HIGHER VOLUME GOING THROUGH THOSE PLANTS REVENUE MAY FALL THE SPOKESMAN SAID BECAUSE PRICES FOR THE MATERIALS HAVE FALLEN SO MUCH WASTE MANAGEMENT SAYS A TON OF RECYCLABLE MATERIAL THAT BROUGHT ABOUT 100 IN 1988 NOW SELLS FOR 44 UNLESS MUNICIPAL OFFICIALS AND CONSUMERS ALSO COME TO APPRECIATE THE ECONOMIC PROBLEMS IN RECYCLING WASTE MANAGEMENT'S RETICENCE COULD COST IT SOME HAULING BUSINESS BECAUSE RECYCLING CONTRACTS ARE OFTEN LINKED TO REGULAR TRASH SERVICE THE COMPANY'S SMALLER RIVAL BROWNINGFERRIS INDUSTRIES INC HAS DONE BETTER IN RECYCLING BY PUSHING HIGHER VOLUMES THROUGH ITS SORTING PLANTS AND AGGRESSIVELY MARKETING MATERIALS 9303100096 930310 LAW RODNEY KING TESTIFIES HE WAS TAUNTED BY RACIAL EPITHET DURING HIS BEATING BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES RODNEY KING TESTIFYING IN THE FEDERAL PROSECUTION OF FOUR POLICE OFFICERS ACCUSED OF VIOLATING HIS CIVIL RIGHTS TOLD JURORS HE WAS TAUNTED WITH A RACIAL EPITHET DURING HIS BEATING HIS VOICE RISING FOR A MOMENT ABOVE THE SUBDUED HALTING TONES OF MUCH OF HIS ACCOUNT MR KING SAID HE WAS LYING ON THE GROUND WHEN AT LEAST ONE OF THE OFFICERS SAID OH WE'RE GOING TO KILL YOU NIGGER RUN DURING MR KING'S FIRST MOMENTS ON THE STAND SOME OF THE JURORS CRANED FORWARD TO SEE THE FACE OF A MAN WHO HAS COME ALMOST TO REPRESENT THIS COUNTRY'S TROUBLED RACE RELATIONS JUST OVER TWO YEARS AGO MR KING WHO IS BLACK WAS VIDEOTAPED AS HE WAS ARRESTED AND REPEATEDLY STRUCK AND KICKED BY WHITE POLICEMEN LAST YEAR AS SMOKE CLEARED OVER LOS ANGELES FROM THE RIOTING THAT OCCURRED AFTER THE OFFICERS WERE ACQUITTED OF MOST OF THE CHARGES IN A STATE TRIAL MR KING'S IMPASSIONED PLEA WAS WIDELY BROADCAST CAN WE ALL GET ALONG THE FIRST COURTROOM ACCOUNT OF THE INCIDENT BY THE 27YEAROLD MR KING WHO DIDN'T TESTIFY AT THE STATE TRIAL APPEARED TO LEND CREDENCE TO PROSECUTORS' CLAIMS THAT THE BLOWS HE RECEIVED WERE EXCESSIVE THE GOVERNMENT MUST PROVE THAT THE FOUR OFFICERS ON TRIAL INTENDED TO USE TOO MUCH FORCE WHEN THEY TOOK HIM INTO CUSTODY ANY IMPROPER MOTIVE FOR THEIR BEHAVIOR SUCH AS ANGER OVER THE SUSPECT'S ACTIONS OR RACIAL PREJUDICE WOULD SUPPORT THE NECESSARY FINDING OF INTENT DEFENSE LAWYERS CONTEND THE OFFICERS ACTED REASONABLY BECAUSE THE SUSPECT HAD BEEN ACTING ERRATICALLY AND WAS RESISTING ARREST MR KING TESTIFIED THAT AFTER THE BEATING I FELT IN LOTS OF PAIN AND WAS WONDERING WHAT DID I DO TO DESERVE THAT TYPE OF PAIN' HE SAID HE HAD PERSISTENT NIGHTMARES EVERY NIGHT ABOUT BEING STRUCK WITH A HARD OBJECT BY POLICE I COULDN'T SEEM TO GET AWAY FROM IT IN MY SLEEP HE SAID IN RESPONSE TO QUESTIONING FROM ASSISTANT US ATTORNEY BARRY KOWALSKI MR KING SAID HE DIDN'T PROVOKE THE ATTACK AND THAT AT NO TIME AFTER HE WAS PULLED OVER BY POLICE OFFICERS DID HE STRIKE KICK OR ATTEMPT TO THROW AN OFFICER OFF HIS BACK I WAS JUST TRYING TO STAY ALIVE SIR HE SAID I WAS JUST TRYING TO STAY ALIVE I NEVER HAD A CHANCE TO STAY STILL THE TESTIMONY WAS HARROWING IN ITS DETAIL MR KING TOLD JURORS THAT AN OFFICER BENT HIS HAND BACK LIKE HE WAS TRYING TO SNAP MY WRIST IN HALF AND THAT A TASER DART SHOT FROM AN ELECTRIC STUN GUN FELT LIKE MY BLOOD WAS BOILING INSIDE OF ME IN COURT HE APPEARED COMPOSED WEARING A CHARCOAL SUIT AND PURPLE PATTERNED TIE AND A CLOSELY CROPPED GOATEE HE TOLD JURORS HE HAS SEEN THE FAMOUS VIDEOTAPE OF THE INCIDENT ONLY ABOUT 10 TIMES IT'S SICKENING TO SEE IT HE SAID IT MAKES ME SICK TO MY STOMACH AFTER THE GOVERNMENT'S 50MINUTE EXAMINATION THE FIRST TWO OF THE FOUR DEFENSE LAWYERS ASKED MR KING ABOUT HIS USE OF ALCOHOL ON THE NIGHT OF THE BEATING AND ABOUT FALSE STATEMENTS HE HAS MADE IN THE PAST SUCH AS CLAIMS THAT HE WAS NEITHER DRUNK NOR SPEEDING ON THE NIGHT OF THE INCIDENT I ONLY WANT TO TELL THE TRUTH MR KING SAID DEFENSE CROSSEXAMINATION IS EXPECTED TO CONTINUE TODAY LEGAL EXPERTS GENERALLY SAID THE PROSECUTORS COULDN'T BE HURT BY CALLING MR KING TO THE STAND IN ORDER TO CONVICT THEY NEED TO GET THE JURORS ANGRY THEY CAN ONLY DO THAT IF THE JURY SEES KING AS A FELLOW HUMAN BEING SAID DANIEL CAPLIS A DENVER TRIAL LAWYER WHO IS CLOSELY FOLLOWING THE CASE STATE PROSECUTORS' DECISION NOT TO CALL MR KING AS A WITNESS IN THE EARLIER TRIAL WAS WIDELY QUESTIONED AFTERWARD MR KING'S TESTIMONY FORMED THE EMOTIONAL CORE OF THE CASE SO FAR THE FIRST NINE DAYS OF TRIAL INCLUDED APPEARANCES BY VARIOUS PROSECUTION WITNESSES INCLUDING A POLICE USEOFFORCE EXPERT WHO SAID OFFICERS DISOBEYED POLICE DEPARTMENT POLICY WHEN THEY STRUCK A FALLEN SUSPECT PROSECUTORS APPARENTLY INTEND TO BUILD MUCH OF THEIR CASE ON THE THEORY THAT A VIOLATION OF POLICY IN ITSELF INDICATES AN INTENT TO USE UNLAWFUL FORCE 9303100095 930310 PANEL ADVISES CANADA TO PRIVATIZE CN RAILROAD OTTAWA A CANADIAN GOVERNMENTAPPOINTED PANEL RECOMMENDED PRIVATIZING CANADIAN NATIONAL RAILWAYS THE GOVERNMENTOWNED RAILROAD OPERATES A NATIONWIDE RAIL NETWORK IN CANADA AND IS THE PARENT COMPANY OF THE GRAND TRUNK RAILROAD IN THE US THE PANEL SAID IT WOULD BE DIFFICULT TO FIND A SINGLE BUYER FOR CN BECAUSE OF ITS HEAVY LOSSES IN RECENT YEARS BUT IT SAID VARIOUS OPTIONS WERE POSSIBLE INCLUDING THE SALE OF PARTS OF CN'S SYSTEM CN SAID IT EXPECTS TO REPORT A LOSS OF ONE BILLION CANADIAN DOLLARS US8037 MILLION IN 1992 INCLUDING A C900 MILLION RESTRUCTURING CHARGE BECAUSE OF A CUTBACK OF ITS WORK FORCE BY A THIRD CN CHIEF EXECUTIVE OFFICER PAUL TELLIER SAID THE COMPANY SHOULD BREAK EVEN IN 1994 BUT HE INDICATED THAT CN WON'T BE IN SHAPE TO PRIVATIZE FOR FIVE YEARS THE PANEL ALSO RECOMMENDED ALLOWING FOREIGN INVESTORS TO OWN AS MUCH AS 49 OF CANADIAN AIRLINES THEY ARE CURRENTLY LIMITED TO 25 IN ADDITION THE PANEL PROPOSED ALLOWING FOREIGN CARRIERS BROADER ACCESS TO THE CANADIAN MARKET CANADIAN TRANSPORT MINISTER JEAN CORBEIL SAID THE GOVERNMENT WILL STUDY THE PROPOSALS BUT WON'T MAKE ANY IMMEDIATE DECISIONS ON THEM 9303100093 930310 BUSINESS BRIEF HUMANA INC FIRM EXPECTS EARNINGS GAIN FOR ITS FISCAL SECOND QUARTER HUMANA INC SAID IT EXPECTS TO REPORT EARNINGS OF ABOUT 12 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED FEB 28 COMPARED WITH A PROFORMA FOUR CENTS A SHARE IN THE YEAREARLIER PERIOD ON MARCH 1 HUMANA BASED IN LOUISVILLE KY SEPARATED ITS ACUTECARE HOSPITAL AND MANAGED CARE HEALTH PLAN BUSINESSES INTO TWO UNRELATED PUBLIC COMPANIES HUMANA CONTINUES TO OPERATE THE HEALTH PLAN BUSINESS WHILE THE GALEN HEALTH CARE INC SPINOFF OPERATES THE HOSPITAL BUSINESS IN THE YEAREARLIER QUARTER THE COMBINED HEALTH CARE AND HOSPITAL COMPANY REPORTED EARNINGS OF 54 CENTS A SHARE WITH 50 CENTS COMING FROM THE HOSPITAL BUSINESS NOW KNOWN AS GALEN THE COMPANY ATTRIBUTED THE EARNINGS IMPROVEMENT TO RATE INCREASES OF 12 TO 13 ON ITS MEDICARE HEALTH PLAN PREMIUMS AS WELL AS CONTINUING REDUCTIONS IN ADMINISTRATIVE COSTS THE COMPANY IS DUE TO REPORT EARNINGS MARCH 18 9303100092 930310 WHO'S NEWS BIG BOARD CANDIDATES NOMINATED NEW YORK THE NEW YORK STOCK EXCHANGE NAMED FOUR NEW CANDIDATES FOR ITS BOARD SUBJECT TO A MEMBERSHIP VOTE JUNE 3 PAUL A ALLAIRE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF XEROX CORP AND BERNARD MARCUS CHAIRMAN AND CHIEF EXECUTIVE OF HOME DEPOT INC ARE CANDIDATES FOR PUBLIC REPRESENTATIVES NOMINEES FOR SECURITIES INDUSTRY REPRESENTATIVES ARE ROBERT B FAGENSON PRESIDENT OF FAGENSON & CO AND BENJAMIN H GRISWOLD IV CHAIRMAN OF ALEX BROWN INC ALL FOUR NEW CANDIDATES SUCCEED BOARD MEMBERS THAT HAVE SERVED THREE CONSECUTIVE TERMS ON THE BOARD THE MAXIMUM NUMBER OF CONSECUTIVE TERMS PERMITTED UNDER THE BIG BOARD CONSTITUTION THE EXCHANGE BOARD INCLUDES 12 PUBLIC MEMBERS 12 INDUSTRY MEMBERS AND TWO BIG BOARD OFFICERS 9303100091 930310 LEISURE & ARTS THEATER GEORGE C SCOTT IN A SITCOMSTYLE PLAY BY MELANIE KIRKPATRICK THE GREAT GEORGE C SCOTT ONE OF OUR MOST DISTINGUISHED STAGE AND SCREEN ACTORS THE MAN WHO HAS GIVEN MEMORABLE PERFORMANCES AS GEN PATTON AND WILLIE LOMAN AND DONE JUSTICE TO SHAKESPEARE AND SHAW HAS BEEN REDUCED TO WRONG TURN AT LUNGFISH PROMENADE THEATER WELL ACTORS HAVE TO ACT AND THAT MEANS THEY HAVE TO HAVE SOMETHING TO ACT IN MR SCOTT WHEN PRESENTED WITH THE OPPORTUNITY OF PLAYING A BLIND DYING FRIENDLESS CURMUDGEON PROBABLY TALKED HIMSELF INTO IT ON THE GROUNDS THAT HE HAD NEVER PLAYED A BLIND DYING FRIENDLESS CURMUDGEON BEFORE THAT'S NOT TO SAY HE DOESN'T DO A SPLENDID JOB OF IT FIRE FLASHES FROM HIS SIGHTLESS EYES AND VENOM TRIPS LILTINGLY FROM HIS LIPS BUT IT'S LIKE LISTENING TO ISAAC STERN FIDDLE TURKEY IN THE STRAW OR WATCHING JIM KELLY PLAY DODGEBALL LUNGFISH IS NOT WITHOUT A CERTAIN FACILE CHARM THE PLAYWRIGHTS ARE HOLLYWOOD HOTSHOTS GARRY MARSHALL PRETTY WOMAN AND LOWELL GANZ CITY SLICKERS AND THE SHOW IS FULL OF CLEVER ONELINERS AND ADROIT GAGS IF THE LANGUAGE WERE CLEANED UP LUNGFISH COULD BE THE PILOT FOR A TV SITCOM THE PLOT IS STANDARD PRIMETIME TREACLE A LEARNED BUT LOVELESS PROFESSOR IS BEFRIENDED ON HIS DEATHBED BY A SASSY UNEDUCATED GIRL WHOSE NATURAL WISDOM TURNS OUT TO BE GREATER THAN THAT OF THE POETS THE PROFESSOR LOVES A DYING MAN WE'RE ASKED TO BELIEVE GAINS MORE COMFORT FROM TUNING IN TO A STRANGER'S TROUBLES THAN FROM LISTENING TO THE POETRY OF KEATS AND ELIOT UNSURPRISINGLY THE SUPPORTING CAST IS MADE UP OF TV VETERANS JAMI GERTZ THE GIRL WITH A HEART STARRED IN SIBS AND SQUARE PEGS HER DUMB BEEFY BOYFRIEND IS PLAYED BY TONY DANZA IN HIS NEW YORK STAGE DEBUT AFTER MAKING HIS NAME IN TAXI AND WHO'S THE BOSS KELLI WILLIAMS COMES TO THE ROLE OF A WORLDWEARY STUDENT NURSE AFTER PARTS IN A NUMBER OF TV MOVIES THEY ALL DO A NICE JOB WITH THE MATERIAL AT HAND LUNGFISH IS PLEASANT ENOUGH FARE BUT MY ADVICE IS TO WAIT UNTIL IT SHOWS UP ON PRIME TIME THERE ARE ABOUT 69 OTHER PLAYS TO SEE OFFBROADWAY THIS WEEK A FEW ARE REVIVALS BUT MOST ARE NEW PLAYS THAT WILL SINK WITHOUT A TRACE AND SO IT CAME AS A PARTICULAR PLEASURE TO SEE THREE ONEACT MASTERPIECES BY AN AMERICAN PLAYWRIGHT WHO ISN'T PERFORMED MUCH THESE DAYS THORNTON WILDER HE IS BEST REMEMBERED FOR OUR TOWN 1938 A BITTERSWEET EXPLORATION OF THE VALUE OF LIFE AND THE EFFECTS OF THE DEATHS OF LOVED ONES ON ONE FAMILY IN WILDER WILDER WILDER THE WILLOW CABIN THEATRE COMPANY PERFORMS THREE 1931 PLAYS THAT FORESHADOW OUR TOWN THE LONG CHRISTMAS DINNER IS A QUIET TALE OF 50 YEARS IN THE LIFE OF A MIDWESTERN FAMILY THE HAPPY JOURNEY TO TRENTON AND CAMDEN IS A SWEET COMEDY ABOUT A FRACTIOUS FAMILY ON A CAR TRIP AND PULLMAN CAR HIAWATHA IS AN ELEGIAC LOOK INTO THE MINDS OF PASSENGERS ON A TRAIN HEADING FOR CHICAGO LIKE OUR TOWN ALL ARE ABOUT THE HIDDEN HEROISMS OF LIFE AS ORDINARY FOLKS COPE WITH ORDINARY SITUATIONS THEY ARE BEAUTIFULLY ACTED ON A PLAIN STAGE THAT HIGHLIGHTS THE PLAYS' QUIET PASSIONS NO ONE WHO LISTENED TO RADIO IN THE '70S COULD ESCAPE THE SOUNDS OF POP SONGWRITER CAROLE KING WHOSE 1971 ALBUM TAPESTRY WITH SALES OF 18 MILLION IS STILL THE BESTSELLING FEMALE SOLO RECORD OF ALL TIME AND NOW THERE'S TAPESTRY THE SHOW PRESUMABLY AIMED AT NOSTALGIC BOOMERS WHO WILL WANT TO SING ALONG WITH SMACKWATER JACK YOU'VE GOT A FRIEND YOU MAKE ME FEEL LIKE A NATURAL WOMAN AND I FEEL THE EARTH MOVE UNDER MY FEET UNFORTUNATELY THIS SCHLOCKY SHOW WITH ITS LUSHLY ORCHESTRATED ARRANGEMENTS OF MS KING'S PLAIN DIRECT SONGS IS APT TO REMIND A FORTYSOMETHING AUDIENCE OF A RIDE IN AN ELEVATOR RATHER THAN AN ALLNIGHTER BACK IN COLLEGE DAYS THE EARTH DID NOT MOVE UNDER MY FEET STEVE TESICH LEFT YUGOSLAVIA AS A BOY IN THE '50S AND CAME TO THE US WHERE HE GREW UP TO BE A PLAYWRIGHT SPEED OF DARKNESS AND SCREENWRITER BREAKING AWAY ON THE OPEN ROAD JOSEPH PAPP PUBLIC THEATER IS A RETURN TO HIS THEATRICAL ROOTS SET AT AN UNNAMED TIME IN AN UNNAMED COUNTRY DURING A CIVIL WAR IT'S A DISTURBING PARABLE ABOUT TWO MEN WHO ARE FLEEING THE BRUTAL FIGHTING AL BYRON JENNINGS HAS A CART LADEN WITH BOOTY THAT HE HAS LOOTED FROM ART MUSEUMS AND THAT HE BELIEVES WILL MARK HIM AS AN EXCEPTIONAL MAN WHEN THEY FINALLY REACH A FREE COUNTRY ANGEL ANTHONY LAPAGLIA IS A GENTLE BRUTE WHO HAS LATCHED ONTO AL WHO NEEDS SOMEONE TO PULL HIS CART THEY DISCUSS THE MEANING OF LIFE AND ENCOUNTER JESUS WHO SAYS NOTHING BUT PLAYS THE CELLO PRESUMABLY INSPIRED BY IMAGES OF SARAJEVO AND DUBROVNIK ON THE OPEN ROAD PACKS A CERTAIN RAW EMOTIONAL POWER THIS IS AIDED BY DONALD EASTMAN'S STUNNING SET CONSTRUCTED OF RAMPS AND CHICKEN WIRE AND BY MR LAPAGLIA'S FIERCE PERFORMANCE AS ANGEL BUT WITH HYPERBOLIC LANGUAGE AND HEAVYHANDED CHRISTIAN IMAGERY ON THE OPEN ROAD ENDS UP LOOKING LIKE A WEAK PARODY OF BECKETT 9303100090 930310 BUSINESS BRIEF AB VOLVO US SALES ARM IS RAISING BASE PRICE OF 1993 VEHICLES AB VOLVO CARS OF NORTH AMERICA INC THE US SALES ARM FOR SWEDEN'S AB VOLVO SAID IT IS RAISING THE BASE PRICE OF ITS 1993 VEHICLES AS MUCH AS 4 FROM INTRODUCTORY 1993 PRICES THE RECENT PRICE INCREASE BOOSTS PRICES AS MUCH AS 4 FROM THE 1992 INTRODUCTORY PRICES VOLVO DIDN'T RAISE PRICES IN JANUARY ON MOST OF ITS 1993 MODELS FROM THE 1992 LEVEL VOLVO WHICH HOLDS LESS THAN 1 OF THE US CAR MARKET BLAMED THE RECENT PRICE RISE ON INCREASED COSTS AND CURRENCY SHIFTS EFFECTIVE MARCH 15 THE LEAST EXPENSIVE VOLVO THE 240 SEDAN WITH A MANUAL TRANSMISSION WILL BE PRICED 900 HIGHER AT 22720 UP 4 FROM 21820 THE BASE PRICE OF THE 960 SEDAN WITH AUTOMATIC TRANSMISSION WILL RISE 1400 OR 4 TO 36295 9303100089 930310 FBI OFFICIAL THINKS NEW YORK BOMBING WAS THE WORK OF LARGE TERRORIST GROUP BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A TOP FEDERAL BUREAU OF INVESTIGATION OFFICIAL SAID INVESTIGATORS HAVE A GUT FEELING THAT THE BOMBING OF THE WORLD TRADE CENTER IN NEW YORK WAS ORGANIZED BY A LARGE WELLKNOWN TERRORIST GROUP JAMES FOX THE HIGHESTRANKING FBI OFFICIAL INVOLVED IN THE INVESTIGATION TOLD A HOUSE JUDICIARY SUBCOMMITTEE THAT THE FEB 26 BOMBING BORE THE MARK OF PROFESSIONALS HE DIDN'T NAME A GROUP AFTER HIS REMARKS MR FOX APPEARED TO BE SCOLDED BY HIS BOSS FBI DIRECTOR WILLIAM SESSIONS WHO TOLD THE HOUSE PANEL WE JUST SHOULD NOT SPECULATE ON THE INVESTIGATION OUTSIDE EXPERTS ON TERRORISM WHO ALSO APPEARED BEFORE THE COMMITTEE SAID THAT THE GROUP INVOLVED IN THE BOMBING PROBABLY WAS BASED OUTSIDE THE US MOST LIKELY IN THE MIDDLE EAST WITH THIS BOMBING A TABOO HAS BEEN BROKEN SAID BRIAN M JENKINS SENIOR MANAGING DIRECTOR FOR KROLL ASSOCIATES A LARGE PRIVATE INVESTIGATION FIRM MR JENKINS A FORMER ANALYST ON TERRORIST INCIDENTS FOR THE RAND CORP SAID THAT DURING THE 1980S THERE APPEARED TO BE AN UNWRITTEN LAW AMONG MIDDLE EAST TERRORIST GROUPS NOT TO STAGE INCIDENTS IN THE US THAT REFLECTED PARTLY THE DIFFICULTY AND LONG DISTANCES INVOLVED AND PARTLY THE FACT THAT THERE ARE PLENTY OF US TARGETS IN EUROPE AND THE MIDDLE EAST HE SAID STEPHEN HIGGINS DIRECTOR OF THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS TESTIFIED THAT IT WOULDN'T HAVE BEEN DIFFICULT FOR A TERRORIST GROUP TO BUY EXPLOSIVES IN THE US YOU CAN BUY DYNAMITE IN MANY STATES AS EASILY AS YOU CAN BUY A GUN HE SAID STILL MR SESSIONS SAID THAT THE POSSIBILITY THAT THE BOMBING IS PART OF A NEW WAVE OF TERRORISM IN THE US WAS SPECULATION AT BEST THE CHAIRMAN OF THE PANEL REP CHARLES SCHUMER D NY PROPOSED TIGHTER LAWS GOVERNING THE SALE OF THE EXPLOSIVES AND REQUIRING EXPLOSIVES MANUFACTURERS WHO SELL PRODUCTS IN THE US TO INCLUDE TAGGANTS MICROSCOPIC CHEMICALS THAT CAN BE TRACED QUICKLY AND EASILY TO ITS BATCH AND MANUFACTURER BUT ACCORDING TO ATF STATISTICS CURBING THE CLANDESTINE USE OF EXPLOSIVES WON'T BE EASY BECAUSE THE THEFT OF HIGH EXPLOSIVES FROM MINING AND CONSTRUCTION SITES WHERE MOST OF THEM ARE USED IS COMMON BETWEEN 1987 AND 1991 THERE WERE MORE THAN 90000 REPORTS OF EXPLOSIVES THEFTS THE HOUSE HEARING AND REP SCHUMER'S PROPOSED LEGISLATION ALSO FOCUSED ON WAYS CONGRESS COULD TIGHTEN THE LARGE FLOW OF ILLEGAL IMMIGRANTS TO THE US ONE OF THE SUSPECTS IN THE BOMBING CASE MOHAMMED SALAMEH A 25YEAROLD JORDANIAN USED A TOURIST VISA TO ENTER THE US SIX YEARS AGO AND REMAINED AFTER IT EXPIRED INVESTIGATORS ARE LOOKING AT THE TIES BETWEEN MR SALAMEH ANOTHER SUSPECT AND SHEIK OMAR ABDELRAHMAN A MILITANT MUSLIM FUNDAMENTALIST PREACHER THE SHEIK WAS ON A US TERRORIST LIST WHEN HE WAS GIVEN A TOURIST VISA IN 1990 BY THE US EMBASSY IN KHARTOUM SUDAN MEANWHILE RESTORATION EFFORTS CONTINUED AT THE CENTER WHERE ITS DIRECTOR CHARLES MAIKISH SAID APRIL 1 REMAINED THE LIKELY TARGET MOVEIN DATE THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY OWNER OF THE COMPLEX SAID SMOKE AND FIREDETECTION SYSTEMS HAVE BEEN RETURNED TO WORKING ORDER AND YESTERDAY OFFICIALS SAID THE SYSTEM USED TO COOL THE COMPUTERS FOR THE FIVE EXCHANGE MARKETS IN THE WORLD TRADE CENTER WAS FULLY RESTORED 9303100088 930310 WORKPLACE AS SECRETARIES BUY MORE FOR THEIR FIRMS MARKETERS REGARD THEM WITH REVERENCE BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHE HAS BEEN THERE FOR YEARS TREATED BY TURNS LIKE A DOORMAT A ROADBLOCK A NOBODY SHE IS THE SECRETARY BUT SHE IS BEING TREATED WITH MORE DEFERENCE THESE DAYS AT LONG LAST MARKETERS ARE REALIZING THAT THE PERSON SITTING AT THE DESK OUTSIDE THE BOSS'S OFFICE CAN WIELD A LOT OF CLOUT AS OFFICES TURN AWAY MIDDLE MANAGERS AND TURN ON VOICE MAIL SECRETARIES ARE SHOULDERING MORE RESPONSIBILITY FOR RUNNING THE SHOW THEY ARE ALSO MAKING OR BREAKING BIGTICKET PURCHASES MARKETERS ARE TAKING NOTICE SECRETARIES 99 ARE WOMEN HAVE BECOME THE DARLINGS OF LARGE CORPORATIONS WHICH TARGET THEM WITH ADS FOCUS GROUPS AND INCENTIVE PLANS FEDERAL EXPRESS CORP SENDS OUT 350000 QUARTERLY MAGAZINES FOR SECRETARIES WITH TIPS ON OFFICE ECOLOGY DRESSING FOR WORK COPING WITH TOUGH BOSSES EVEN AN ADVICE COLUMN SECRETARIES GET FREE LEGAL PADS TO INTEREST THEM IN OFFICE DEPOT INC'S 300 STORES THE RITZCARLTON HOTEL CO CURRIES FAVOR BY DELIVERING FRESHLY BAKED COOKIES AND SERVING HIGH TEA IN OFFICE CONFERENCE ROOMS FOR WORKERS WHO HAVE LONG FELT OVERWORKED AND UNDERVALUED A LITTLE RESPECT CAN DO WONDERS WE USED TO DEAL WITH THE BOSSES BUT WE BEGAN TO REALIZE THAT IF WE DIDN'T WORK WITH SECRETARIES WE WOULD LOSE BUSINESS SAYS CARL ANDERSON NATIONAL DIRECTOR OF FOOD SERVICE FOR CANTEEN THE CONTRACTFOOD UNIT OF TW HOLDINGS INC IN SPARTANBURG SC SECRETARIES ARE THE HIDDEN DECISION MAKERS SAYS PETER FREDO VICE PRESIDENT OF ADVERTISING AT UNITED PARCEL SERVICE OF AMERICA INC IN ATLANTA MOST SECRETARIES CONTROL THE SELECTION OF SUPPLIERS FOR DESK PRODUCTS TRAVEL ARRANGEMENTS AND COMPUTER SUPPLIES ACCORDING TO TWO DIFFERENT SURVEYS CONDUCTED IN 1992 BY PROFESSIONAL SECRETARIES INTERNATIONAL A TRADE GROUP IN KANSAS CITY MO AND FEDERAL EXPRESS AS MANY AS TWOTHIRDS OF SECRETARIES ALSO BUY OFFICE FURNITURE COPIERS FAX MACHINES AND COMPUTERS AS WELL AS ARRANGE BUSINESS LUNCHES AND HIRE TEMPORARY HELP AND COURIER SERVICES THE SURVEYS SAY I'VE SEEN SECRETARIES SIGN ORDERS FOR 100000 SAYS JONATHAN BEES A PRODUCT MARKETING MANAGER AT KONICA BUSINESS MACHINES USA INC A UNIT OF KONICA CORP THE ROLE OF SECRETARIES CHANGED IN THE PAST DECADE AS THEY SPENT LESS TIME TAKING SHORTHAND AND MORE TIME TAPPING INTO SPREADSHEETS SECRETARIES WERE SPARED FROM SOME MUNDANE TASKS BY NEW TECHNOLOGY THAT SPEEDED UP TYPING AND ANSWERING PHONES MANY MANAGERS BECAME ADEPT ENOUGH WITH PERSONAL COMPUTERS TO DO SOME OF THEIR OWN TYPING SECRETARIES WERE OFTEN THE FIRST AND BEST TRAINED WORKERS ON OFFICE SOFTWARE ENABLING THEM TO UNDERTAKE GRAPHICS PUBLISHING AND FINANCIAL WORK AND TO TRAIN OTHERS HOW TO USE THE PROGRAMS THEY ALSO TOOK UP THE SLACK AFTER CORPORATIONS CUT BACK MANAGEMENT RENE LENTSCH EXECUTIVE ASSISTANT FOR THE MANAGING PARTNER OF ERNST & YOUNG'S MINNEAPOLIS OFFICE USED TO ARRANGE HER BOSS'S CALENDAR TYPE AND SET UP MEETINGS BUT AFTER A MIDDLE MANAGER LEFT IN NOVEMBER THE COMPANY DECIDED TO ELIMINATE THAT JOB AND GIVE MS LENTSCH RESPONSIBILITY FOR DETERMINING THOUSANDDOLLAR PURCHASES IN FACT WOMEN'S LABOR EXPERTS SEE AN INSIDIOUS SIDE TO THE ADDED RESPONSIBILITIES SECRETARIES GET POWER BECAUSE THEY'RE LESS EXPENSIVE SAYS BARBARA OTTO SPOKESWOMAN FOR THE NATIONAL ASSOCIATION OF WORKING WOMEN KNOWN FAMILIARLY AS 9TO5 THEY'RE FINDING THEIR WORKLOAD TRIPLING SO THEY HAVE MORE TO DO ON LESS TIME EVEN THOUGH THEIR INPUT INCREASES THEIR STATUS HASN'T NONETHELESS MARKETERS ARE CHANGING THEIR STRATEGIES TO RECOGNIZE SECRETARIES ARA/CORY THE OFFICEBEVERAGE UNIT OF ARA SERVICES INC IN PHILADELPHIA USED TO ADDRESS ITS APPEALS WITH DEAR MANAGER WHEN IT WANTED COMPANIES TO BUY ITS COFFEEMAKING SERVICES BUT THIS YEAR ITS 400000 BROCHURES WILL BE ADDRESSED DEAR DECISIONMAKER SO THEY WON'T SLIGHT SECRETARIES SAYS WILLIAM MCCAULEY VICE PRESIDENT SALES/MARKETING THE COMPANY CHANGED ITS TACK AFTER MR MCCAULEY WENT ON A SALES CALL IN BOSTON AND ASKED A SECRETARY IF HE COULD DIRECT HIS PITCH TO HER BOSS SHE LOOKED AT US COLDFACED AND SAID WHAT MAKES YOU THINK I DON'T MAKE THAT DECISION' THAT WOKE ME UP HE SAYS COMPANIES ARE GOING ALL OUT TO GET THEIR SALES PITCH ON SECRETARIES' DESKS FEDERAL EXPRESS'S MAGAZINE WRITTEN BY AN OUTSIDE MARKETING FIRM PUTS SECRETARIES ON THE COVER AND FEATURES INTERVIEWS WITH THE LIKES OF SUSAN RUTTAN WHO PLAYS THE BELEAGUERED SECRETARY ON TELEVISION'S LA LAW OF COURSE FEDERAL EXPRESS SLIPS IN SELFPROMOTIONS FROM HOW TO ORDER OVERNIGHT PASTRY DELIVERIES TO FULLPAGE ADS SHOWING ITS SECRETARIAL CLIENTS THE MAGAZINE HAS BOOSTED USE OF FEDERAL EXPRESS SERVICES AMONG A THIRD OF THE READERS SAYS A SPOKESWOMAN SECRETARIES THINK THEY'VE BEEN LONG DISREGARDED SAYS ROBERT MILLER A FEDERAL EXPRESS MARKETING VICE PRESIDENT THE FEEDBACK WE GET IN TERMS OF PHONE CALLS AND FAXES IS JUST OVERWHELMING THE MARKETING POWER IS CLEAR RIVAL PACKAGE DELIVERERS ARE ALSO GETTING MILEAGE OUT OF SECRETARIES UPS SHOWS SECRETARIES IN A NEW AD WHERE THEY BRAG ABOUT HOW MANY WORDS THEY TYPE A MINUTE HOW THEY PICK A PACKAGEDELIVERY SERVICE AND HOW THEY DON'T GET THEIR BOSS'S COFFEE IN SEPTEMBER THE COMPANY MAILED 55000 OFFERS FOR FREE COMPACT DISKS TO ANY SECRETARIES WHO USED ITS ONCALL SERVICE LAST FALL THE US POSTAL SERVICE COURTED SECRETARIES BY SENDING OUT ABOUT 60000 PADS WITH ITS 1800 NUMBER FOR PACKAGE PICKUP FOOD AND TRAVEL COMPANIES ARE GETTING BUSINESS BY WINING AND DINING SECRETARIES CANTEEN GRILLS SECRETARIES ABOUT NEW MENU ITEMS FOR ITS BUSINESS CATERING SERVICE AT A HUGHES AIRCRAFT CO PLANT IN LOS ANGELES CANTEEN DISHED UP SAMPLES OF CREAM SOUPS AND RED MEAT TO 120 SECRETARIES LAST FALL BUT THEY DEMANDED HEALTHIER FARE AFTER ADDING THE FOODS SECRETARIES SUGGESTED MORE PASTAS LIGHTER SOUPS AND A GRILLED CHICKEN AND AVOCADO SALAD ENTREE CANTEEN SAW A 21 INCREASE IN ORDERS FOR THAT CATERING SERVICE THE RITZCARLTON INCREASES ITS BUSINESS BY TREATING SECRETARIES TO LUNCH AT PICKER INTERNATIONAL A CLEVELAND MEDICALEQUIPMENT MAKER OWNED BY THE GENERAL ELECTRIC CO IN LONDON THE HOTEL'S WAITERS SERVED 18 SECRETARIES TURKEYFILLED CROISSANTS AND MINERAL WATER IN BLUE GLASS GOBLETS LAST SUMMER SINCE THEN THE SECRETARIES MAKE FIVE TIMES AS MANY RESERVATIONS AT THE CHAIN THAN THEY USED TO ABOUT 50 NIGHTS A MONTH SAYS NANCY GENTZ CORPORATE DIRECTOR OF BUSINESS TRAVEL OFFICESUPPLY FIRMS ARE QUICK TO USE MEDIA FAVORED BY SECRETARIES MINNESOTA MINING & MANUFACTURING CO OFFERS FREE SAMPLES OF ITS POSTIT NOTES AND FAX MEMOS IN FULLPAGE ADS THAT RUN IN SUCH PUBLICATIONS AS PEOPLE COSMOPOLITAN AND THE TRADE MAGAZINE THE SECRETARY SAYS KEVIN NEWMAN MARKETING SUPERVISOR FOR 3M'S POSTIT BUSINESS UNIT WE FOUND THEY RESPOND VERY MUCH TO CORPORATE ACKNOWLEDGEMENT SAYS THOMAS MORAN SENIOR MARKETING MANAGER FOR POLAROID CORP'S OFFICEPRODUCTS UNIT WHICH SPENDS NEARLY ONETHIRD OF ITS ADVERTISING BUDGET ON MAGAZINES THAT REACH SECRETARIES OFFICE DEPOT RUNS ITS ADS WITH TESTIMONIALS FROM SECRETARIES ON CABLETV CHANNELS THAT MIGHT APPEAL TO WOMEN INCLUDING THE DISCOVERY CHANNEL ARTS & ENTERTAINMENT LIFETIME AND CABLE NEWS NETWORK HALF OF THE 700 NEW PRODUCTS IT OFFERS EVERY YEAR ARE SUGGESTED BY SECRETARIES SAYS GARY FOSS EXECUTIVE VICE PRESIDENT MARKETING HE ADDS THEY ARE THE BASIS FOR ALMOST ALL OF OUR MARKETING 9303100087 930310 LAW LEGAL BEAT TV COPS MAY RIGHT WRONGS WRONG RIGHTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL TELEVISION SHOWS THAT REENACT CRIMES ARE HELPING ROUND UP FELONS BUT DO THEY TRAMPLE OVER SUSPECTS' RIGHTS SPURRED BY THE SUCCESS OF NATIONAL PROGRAMS SUCH AS FOX TELEVISION'S AMERICA'S MOST WANTED DOZENS OF SYNDICATORS AND LOCAL TELEVISION STATIONS NOW HAVE SHOWS THAT SEEK VIEWERS' HELP IN SOLVING CRIMES TYPICALLY VIEWER WATCH REENACTMENTS AND THEN CALL A HOTLINE WITH TIPS ON A SUSPECT'S WHEREABOUTS BUT AS THE POPULARITY OF THESE PROGRAMS GROWS CIVILLIBERTIES LAWYERS AND MEDIAETHICS EXPERTS HAVE BECOME INCREASINGLY UNEASY THEY ARGUE THAT THE SHOWS PRESENT A ONESIDED VERSION OF HOW A CRIME TOOK PLACE OFTEN PINNING BLAME ON SUSPECTS BEFORE THEY'VE EVEN BEEN INDICTED AND THEY WORRY THAT SUSPECTS WON'T GET A FAIR TRIAL IF POTENTIAL JURORS FORM OPINIONS ON THE BASIS OF THE TELEVISION SHOW EVEN THOUGH JUDGES OFTEN DISQUALIFY JURORS WHO HAVE BEEN EXPOSED TO PRETRIAL PUBLICITY PLAINLY THEY'RE ENACTED IN A TOTALLY BIASED WAY AND PRESENT THE VIEW OF THE POLICE SAYS HARVARD LAW SCHOOL PROFESSOR ALAN DERSHOWITZ OTHER LAWYERS COMPLAIN THAT THE SHOWS FACED WITH PRESSURE FOR HIGH RATINGS TURN PETTY CRIMES INTO MELODRAMA PORTRAYING SECONDARY OFFENDERS AS BIGLEAGUE CRIMINALS HENRY TURKEL A FLORIDA CHEF SUED AMERICA'S MOST WANTED FOR LIBEL AFTER HE WAS PROFILED LAST FALL BY THE SHOW AS THE GOURMET CROOK HIS LAWYER ELAINE MILLER CONTENDS THAT THE SHOW PORTRAYED A WILDLY EXAGGERATED ACCOUNT OF THE CASE AGAINST HER CLIENT WHO IS CHARGED WITH FORGING 5900 IN CHECKS AND STEALING A 600 HANDGUN IF MR TURKEL WHO COOKED AT THE POSH COLONY HOTEL IN PALM BEACH HAD WORKED INSTEAD AT A HOWARD JOHNSON'S HE WOULD NEVER HAVE BEEN ON AMERICA'S MOST WANTED' SAYS MS MILLER IF HE'S AMERICA'S MOST WANTED THEN AMERICA IS VERY SAFE THE PROFILE OPENS WITH SHOTS OF OPULENT PALM BEACH SCENERY AND A LIGHT MUSICAL BACKDROP THAT SOUNDS LIKE A MOVIE THEME SONG AN ACTOR PORTRAYING MR TURKEL SEDUCES A WOMAN AND DUPES HER INTO INVESTING IN A NEW RESTAURANT AFTER THE COUPLE BREAKS UP THE ACTOR LOOTS THE RESTAURANT AND DRIVES AWAY MR TURKEL CONCEDES THAT HIS RELATIONSHIP WITH THE WOMAN FIZZLED BUT HE DENIES HE DECEIVED HER OR TOOK ANYTHING FROM THE RESTAURANT ACCORDING TO MS MILLER WHATEVER THE CRITICISMS OF SHOWS SUCH AS AMERICA'S MOST WANTED THEY BOAST REMARKABLE SUCCESS AT FINDING SUSPECTS ON THE LAM SINCE AMERICA'S MOST WANTED MADE ITS DEBUT FIVE YEARS AGO ITS VIEWERS HAVE LED POLICE TO 243 SUSPECTS ABOUT 43 OF FUGITIVES PROFILED INCLUDING EIGHT PEOPLE ON THE FEDERAL BUREAU OF INVESTIGATION'S MOSTWANTED LIST FANS OF NBC'S UNSOLVED MYSTERIES HAVE HELPED TRACK DOWN 76 FUGITIVES ABOUT 41 OF THOSE PROFILED SINCE THE SHOW BEGAN IN 1987 LAWENFORCEMENT OFFICIALS PRAISE THE PROGRAMS WHICH WITH THEIR MILLIONS OF VIEWERS HAVE EFFECTIVELY MOUNTED THE LARGEST POSSE IN THE HISTORY OF POLICE WORK THE SHOWS SIGNIFICANTLY EXTEND OFFICIALS' ABILITY TO REACH THAT ONE PERSON OUT THERE WHO MAY HAVE KNOWLEDGE OF WHERE THAT FUGITIVE IS SAYS SWANSON CARTER AN FBI PUBLICAFFAIRS OFFICER IT DEFINITELY SAVES A LOT OF LEGWORK ONCE FUGITIVES ARE FOUND HOWEVER DEFENSE LAWYERS SAY THEIR CHANCES OF RECEIVING A FAIR TRIAL MAY BE COMPROMISED IF POTENTIAL JURORS HAVE SEEN A TELEVISED REENACTMENT OF THE CRIME BECAUSE VIDEO REENACTMENTS PURPORT TO SHOW HOW A CRIME TOOK PLACE THEY CREATE A GREATER POTENTIAL FOR TAINTING A JURY THAN OTHER KINDS OF PRETRIAL PUBLICITY SAYS MICHAEL LEVY AN OMAHA NEB CRIMINALDEFENSE LAWYER MR LEVY IS DEFENDING GREGORY WEBB AN ACCUSED MURDERER WHO WAS ARRESTED AFTER BEING FEATURED ON UNSOLVED MYSTERIES LAST MONTH MR WEBB WILL PLEAD NOT GUILTY MR LEVY SAYS MEDIAETHICS SPECIALISTS HAVE OTHER WORRIES THEY CRITICIZE THE SHOWS' INTIMATE RAPPORT WITH LAWENFORCEMENT OFFICIALS WHO OFTEN ASSIST PRODUCERS IN PUTTING PROFILES TOGETHER SOME OFFICIALS EVEN APPEAR ON THE SHOWS ONE OF THE ROLES OF THE MEDIA IS TO BE A WATCHDOG ON LAW ENFORCEMENT SAYS TOM GOLDSTEIN DEAN OF THE JOURNALISM SCHOOL AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WHEN THE TWO BECOME PARTNERS HE SAYS I JUST THINK IT LEADS TO MISCHIEF ROBIN JOHN DELGADO A LOS ANGELES BARTENDER EXPERIENCED SUCH MISCHIEF FIRSTHAND WHEN HE WAS WRONGLY ARRESTED AFTER BEING MISTAKEN FOR A FUGITIVE PROFILED ON AMERICA'S MOST WANTED MR DELGADO HAS SUED THE SHOW THE LOS ANGELES POLICE AND THE FBI THE LAWSUIT ALLEGES THAT HE WAS LIBELED AND FALSELY IMPRISONED BUT THE TELEVISION CRIME SHOWS DON'T PRETEND TO BE LAWENFORCEMENT WATCHDOGS WE'RE ADVOCATING FOR THE VICTIMS OF CRIME SAYS PHILIP LERMAN MANAGING EDITOR OF AMERICA'S MOST WANTED I WOULD BE TERRIFIED IF ALL NEWS PROGRAMS WENT THE WAY WE HAVE MR LERMAN ADDS BUT I ALSO THINK THAT ALL NEWS PROGRAMS COULD LEARN A LITTLE BIT FROM WHAT WE'VE DONE WHICH IS THAT THERE ARE TIMES THAT BREAKING DOWN THAT BARRIER BETWEEN MEDIA AND LAW ENFORCEMENT IS MUCH MORE USEFUL THAN ALWAYS MAINTAINING IT A FEDERAL APPEALS COURT OVERTURNING A LOWERCOURT DECISION RULED THAT LOGOS AND TITLES USED ON NEWSPAPER COLUMNS ARE ENTITLED TO TRADEMARK PROTECTION IN WHAT SOME LAWYERS SAID WAS THE FIRST RULING OF ITS KIND ON THE MATTER THE NINTH CIRCUIT COURT OF APPEALS IN SAN FRANCISCO REJECTED A LOWER COURT JUDGE'S DECISION THAT NEWSPAPERS AND MAGAZINES AREN'T ENTITLED TO TRADEMARK PROTECTION FOR THEIR COLUMN TITLES THE DISPUTE CENTERS OVER A CLAIM BY METRO A SAN JOSE CALIF WEEKLY NEWSPAPER THAT THE SAN JOSE MERCURY NEWS UNFAIRLY APPROPRIATED THE LOGO AND NAME OF THE WEEKLY'S PUBLIC EYE COLUMN THE MERCURY NEWS PUBLISHED BY KNIGHTRIDDER INC PUBLISHES A FRIDAY ENTERTAINMENT TABLOID SECTION CALLED EYE WITH A LOGO RESEMBLING THE WEEKLY'S COLUMN US DISTRICT JUDGE SPENCER WILLIAMS HAD REJECTED THE WEEKLY'S REQUEST FOR AN INJUNCTION TO HALT THE MERCURY NEWS FROM CONTINUING PUBLICATION OF EYE JUDGE WILLIAMS SAID THE NAME OF A NEWSPAPER COLUMN DOES NOT APPEAR TO RISE TO THE LEVEL OF A TRADEMARK BUT THE APPEALS COURT SENT THE INJUNCTION REQUEST BACK TO JUDGE WILLIAMS FOR RECONSIDERATION SAYING READERS' RECOGNITION OF AND LOYALTY TO A PARTICULAR COLUMN ARE THINGS OF VALUE IN THE NEWSPAPER PUBLISHING WORLD THE COURT SAID THE US PATENT AND TRADEMARK OFFICE ALLOWS PUBLICATIONS TO REGISTER COLUMNS CITING THE NEW YORKER MAGAZINE'S TALK OF THE TOWN AS AN EXAMPLE JOHN ALIOTO METRO'S ATTORNEY CALLED THE APPEALS COURT RULING A MAJOR VICTORY FOR THE LITTLE GUY WHOSE INNOVATION WAS RIPPED OFF BY THE MERCURY NEWS METRO DIDN'T REGISTER ITS NAME AS A TRADEMARK BEFORE THE MERCURY NEWS SECTION APPEARED HE SAID MERCURY NEWS EXECUTIVE EDITOR ROBERT INGLE SAID THAT THE COURT RULING ON THE INJUNCTION COVERED ONLY A NARROW POINT OF LAW AND THAT THE DAILY PAPER HADN'T COPIED THE WEEKLY'S COLUMN A COLUMN CAN BE A TRADEMARK BUT ONLY THE EXACT NAME MR INGLE SAID HE SAID 167 PUBLICATIONS IN THE US INCLUDE THE WORD EYE IN THEIR NAME PROSECUTORS MAY BLOCK YOUNG ADULTS FROM SERVING AS JURORS SIMPLY BECAUSE OF THEIR AGE A FEDERAL APPEALS COURT RULED A THREEJUDGE PANEL FOR THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN FRANCISCO RULED THAT A PROSECUTOR MAY EXCLUDE YOUNG ADULTS FROM SERVING AS JURORS WITHOUT VIOLATING THEIR RIGHTS OR THE RIGHTS OF YOUNG CRIMINAL DEFENDANTS THE ISSUE OF WHETHER SUCH EXCLUSIONS VIOLATE THE CONSTITUTION HAS BEEN RAISED INCREASINGLY BY DEFENSE ATTORNEYS SINCE THE US SUPREME COURT RULED IN 1986 THAT A PROSECUTOR IMPROPERLY REJECTED JURORS IN ORDER TO SYSTEMATICALLY EXCLUDE BLACKS FROM THE TRIAL OF A BLACK DEFENDANT SINCE THEN DEFENSE ATTORNEYS HAVE ARGUED THAT THE SOCALLED BATSON DECISION SHOULD BE EXTENDED TO DENY PROSECUTORS THE RIGHT TO BAR YOUNG JURORS FROM SERVING ON THE TRIALS OF YOUNG DEFENDANTS DEFENSE ATTORNEYS CONTEND THAT SUCH EXCLUSIONS VIOLATE THE RIGHTS OF YOUNG PEOPLE TO BE TREATED LIKE EVERYONE ELSE AND THE RIGHTS OF YOUNG DEFENDANTS TO A FAIR TRIAL FEDERAL APPEALS COURTS IN BOSTON AND CHICAGO HAVE REJECTED SUCH ARGUMENTS THE NINTH CIRCUIT CITED THOSE FEDERAL APPEALSCOURT DECISIONS IN ITS RULING UPHOLDING THE MURDER CONVICTION OF WENDELL PICHAY OF HONOLULU SAYING YOUNG ADULTS DO NOT CONSTITUTE A COGNIZABLE GROUP FOR PURPOSES OF AN EQUAL PROTECTION CHALLENGE TO THE COMPOSITION OF A JURY THOMAS MUEHLECK ASSISTANT US ATTORNEY IN HONOLULU SAID YOUTH ALONG WITH POOR EDUCATION UNEMPLOYMENT AND LACK OF WORLD EXPERIENCE WERE THE REASONS HE REJECTED TWO JURORS UNDER THE AGE OF 23 IN THE TRIAL OF MR PICHAY WHO WAS THEN 21 YEARS OLD RUSTAM A BARBEE AN ASSISTANT FEDERAL PUBLIC DEFENDER IN HONOLULU SAID YOUNG PEOPLE DESERVED TO BE PROTECTED FROM SYSTEMATIC EXCLUSION FROM JURIES BECAUSE THEY ARE FULLFLEDGED CITIZENS WHO VOTE PAY TAXES AND SERVE IN THE ARMED FORCES MR BARBEE SAID HIS OFFICE HAS NOT DECIDED WHETHER TO APPEAL THE RULING NEW ENGLAND MERGER HARTFORD CONN LAW FIRM ROBINSON & COLE WILL MERGE NEXT MONTH WITH HARRISON & MAGUIRE A 25LAWYER BOSTON FIRM ROBINSON & COLE WITH 134 ATTORNEYS ALREADY HAS OFFICES IN CONNECTICUT AND NEW HAMPSHIRE BILL RICHARDS CONTRIBUTED TO THIS ARTICLE 9303100086 930310 RULE OF LAW ATTORNEY GENERAL AND SOCIAL WORKER BY TERRY EASTLAND IN JANET RENO WHOSE CONFIRMATION HEARING CONTINUES TODAY PRESIDENT CLINTON HAS SELECTED UNLIKE HIS FIRST TWO CHOICES AN EXPERIENCED PROSECUTOR OF PLAINLY LIBERAL VIEWS AS STATE ATTORNEY FOR DADE COUNTY FLA SINCE 1978 MS RENO HAS GAINED A REPUTATION AS AN EFFECTIVE LAW ENFORCEMENT OFFICER WINNING BIPARTISAN PRAISE FOR HER WORK AS WELL AS HUGE ELECTORAL MAJORITIES SHE HAS VOICED SUPPORT FOR MORE SPENDING ON CRIMINAL JUSTICE FOR PRISONS POLICE AND JUDGES AND SHE SAYS THAT CAREER CRIMINALS WHO COMMIT A DISPROPORTIONATE AMOUNT OF CRIME SHOULD BE LOCKED AWAY FOR LONG PERIODS AND SHE HAS SOUGHT THE DEATH PENALTY ON NUMEROUS OCCASIONS ALTHOUGH SHE DOES NOT BELIEVE IN IT THERE ARE FEW AMERICANS WHO WOULD NOT AGREE WITH MS RENO WHEN SHE SAYS THAT THE CRIMINAL JUSTICE SYSTEM ISN'T WORKING ALONG WITH THIS TOUGH TALK HOWEVER IS HER STATEMENT THAT HER HIGHEST PRIORITY IS TO PROTECT THE RIGHTS OF THE ACCUSED NOT TO CONVICT THE GUILTY SHE SAYS THE PUBLIC HAS RESPONDED HYSTERICALLY TO DRUGS AND DRUGCAUSED CRIME MOST LIKELY SHE WOULD EMPHASIZE DRUG TREATMENT AND REHABILITATION MUCH MORE THAN RECENT ATTORNEYS GENERAL HAVE FOR MS RENO THE PROBLEM OF CRIME INVOLVES MUCH ELSE JANET IS PART SOCIAL WORKER PART CRIME FIGHTER SAID SEN BOB GRAHAM AT HER HEARING YESTERDAY AS WAS FASHIONABLE IN THE 1960S SHE FOCUSES ON THE ROOT CAUSES OF CRIME WE WILL NOT SOLVE CRIME UNTIL WE ADDRESS THE PROBLEM OF DROPOUTS DRUGS TEEN PREGNANCY WELFARE DEPENDENCY SUBSTANDARD HOUSING AND THE PROLIFERATION OF SUCH PROBLEMS THAT WE HAVE SEEN IN THE INNER CITIES THIS ATTITUDE IS REFLECTED IN HER UNUSUAL USE OF GRAND JURIES WHICH IN FLORIDA ARE PERMITTED TO INVESTIGATE NOT ONLY CRIME BUT ALSO GOVERNMENT INSTITUTIONS AND SOCIAL CONDITIONS UNDER MS RENO'S DIRECTION DADE COUNTY GRAND JURIES HAVE INVESTIGATED NUMEROUS ISSUES HOMELESSNESS CHILD WELFARE PUBLIC HOUSING SCHOOL DROPOUTS AND THE DEVELOPMENT OF MINORITY ENTERPRISES OTHER SUBJECTS HAVE INCLUDED HURRICANE PREPARATION THE CONDITION OF THE MIAMI RIVER FIREARMS REGULATION AIDS HAZARDOUS WASTE AND THE COUNTRY'S HOUSING AUTHORITIES AND MASS TRANSIT SYSTEMS A RENO SPOKESMAN TOLD LEGAL TIMES WHICH FIRST REPORTED HER UNUSUAL USE OF GRAND JURIES THAT WHEN A GOVERNMENT AGENCY IS DYSFUNCTIONAL OR AN INDUSTRY IS ACTING IRRESPONSIBLY OR ANY FUNCTION OF OUR COMMUNITY IS AT RISK THE GRAND JURY LOOKS INTO IT THE IDEA IS TO RIGHT WRONGS IN THE COMMUNITY AS ONE GRAND JURY PUT IT WE ACT AS THE CONSCIENCE OF THIS COMMUNITY AS ATTORNEY GENERAL MS RENO WOULD NOT BE ABLE TO USE FEDERAL GRAND JURIES WHICH ARE RESTRICTED TO INVESTIGATING STATUTORILY DEFINED CRIMES IN THIS WAY BUT SHE WOULD NOT LACK FOR VENUES TO PURSUE HER SOCIALWELFARE INTERESTS ATTRONEYS GENERAL HAVE USED TASK FORCES AND COMMISSIONS TO STUDY A WIDE RANGE OF ISSUES SUCH AS PORNOGRAPHY AND ORGANIZED CRIME ATTORNEYS GENERAL ALSO HAVE SERVED ON CABINETLEVEL WORKING GROUPS AND IT'S LIKELY THAT MS RENO WHO SPEAKS ELOQUENTLY ABOUT THE PLIGHT OF CRACK BABIES WOULD BE NAMED TO PANELS FOCUSING ON CHILDREN OR THE FAMILY HER INTERESTS CLEARLY MATCH THOSE OF BILL CLINTON AND ESPECIALLY HILLARY RODHAM CLINTON AND HER CIRCLE INCLUDING DONNA SHALALA HEALTH AND HUMAN SERVICES SECRETARY MS RENO CAME TO MR CLINTON'S NOTICE THROUGH MRS CLINTON'S BROTHER A PUBLIC DEFENDER IN MIAMI MARIAN WRIGHT EDELMAN OF THE CHILDREN'S DEFENSE FUND PUSHED HER CANDIDACY SOON AFTER THE ELECTION MS RENO EMPHASIZES THE IMPORTANCE OF THE FAMILY EVEN AS SHE CALLS FOR MORE GOVERNMENT SHE HAS ENDORSED A NEW STRUCTURE OR FRAMEWORK WITHIN THE GOVERNMENT PERHAPS INCORPORATING THE PUBLIC SCHOOLS AND SOCIAL SERVICE AGENCIES TO INSURE TO CHILDREN VERY SMALL CHILDREN AN ENVIRONMENT IN WHICH THEY CAN THRIVE AND GROW AS STRONG AND CONSTRUCTIVE HUMAN BEINGS APPARENTLY IMBUED WITH THE SAME SPIRIT THAT LED MR CLINTON TO NAME LAWYERS TO 13 OF 18 CABINET POSTS MS RENO ALSO BELIEVES THAT ATTORNEYS ARE KEY TO CREATING THIS NEEDED APPARATUS AND INDEED TO SOLVING MANY SOCIAL ILLS LAWYERS SHE SAID IN 1987 ARE WHAT MAKE PEOPLE FREE IF ONE OF THE EMERGING SIGNS OF A NEW DEMOCRAT IS TO EMBRACE CONTRADICTION MS RENO QUALIFIES AS STATE ATTORNEY SHE SAYS SHE FOLLOWED A RIGOROUS HIRING PROCEDURE BASED SOLELY ON MERIT BUT ONE OF HER GRAND JURIES ENDORSED RACECONSCIOUS SETASIDE PROGRAMS LIKE DADE COUNTY'S WHICH ARE PROBABLY UNCONSTITUTIONAL UNDER RICHMOND V CROSON THE 1989 CASE VOIDING A LOCAL SETASIDE WOULD ATTORNEY GENERAL RENO SQUARE THIS CIRCLE BY SAYING RACE IS MERITORIOUS AND SHE WAS ON A 1992 AMERICAN BAR ASSOCIATION TASK FORCE THAT DEFINED BIAS AS STATUTES RULES POLICIES PROCEDURES PRACTICES EVENTS CONDUCT AND OTHER FACTORS OPERATING ALONE OR TOGETHER THAT HAVE A DISPROPORTIONATE IMPACT UPON ONE OR MORE MINORITIES DISPARATE IMPACT THEORY IS THE WELLTRAVELED ROAD TO QUOTAS WHICH OF COURSE ALL GOOD NEW DEMOCRATS SAY THEY OPPOSE STRENGTHS MS RENO WOULD BRING TO HER NEW JOB INCLUDE HER KNOWLEDGE OF VIOLENT DRUGRELATED CRIME AND ALSO A WILLINGNESS TO EXPERIMENT IN 1989 SHE STARTED THE DADE COUNTY DRUG COURT IN WHICH FIRSTTIME NONVIOLENT DRUG OFFENDERS MAY OPT FOR A DRUG REHABILITATION PROGRAM WHICH THEY MUST COMPLETE SUCCESSFULLY TO AVOID JAIL ONE FORM OR ANOTHER OF THIS EXPERIMENT A RELIEF FOR OVERCROWDED PRISONS HAS BEEN ADOPTED BY 25 OTHER JURISDICTIONS UNFORTUNATELY THE INNOVATIVE DADE COUNTY PROGRAM HAS EXPANDED BEYOND ITS ORIGINAL MANDATE LETTING IN OFFENDERS WITH MULTIPLE DRUG POSSESSION ARRESTS AND DEFENDANTS CHARGED WITH OTHER NONVIOLENT FELONIES SUCH AS BURGLARY THE NUMBER OF ARRESTFREE GRADUATES OF THE PROGRAM HAS DECLINED FROM MORE THAN 90 TO 60 A WEAKNESS OF MS RENO'S NOMINATION IS HER EVIDENT LACK OF FAMILIARITY WITH FEDERAL LAW OTHER THAN SOME CRIMINAL LAW SHE WOULD HAVE TO BE A QUICK STUDY IN A LOT OF LAW IN ORDER TO AVOID BEING DEPENDENT ON STILLTOBENOMINATED SUBORDINATES THE FEW REFERENCES TO THE CONSTITUTION SHE HAS MADE IN WRITINGS AND SPEECHES CONCERN CHIEFLY ITS APPARENTLY UNLITIGATABLE PREAMBLE THE PROVISIONS IN THE BILL OF RIGHTS PROTECTING THE RIGHTS OF THE ACCUSED AND ALSO JUDICIAL ADDITIONS LIKE THE ENUMERATED RIGHT OF PRIVACY WHICH SHE ENDORSES IN LINE TO BE THE PRESIDENT'S CHIEF LEGAL ADVISER AND PRINCIPAL LITIGATOR SHE SPEAKS INCOHERENTLY OF MAKING THE CONSTITUTION A LIVING DOCUMENT THAT MEANS WHAT IT SAYS AS ATTORNEY GENERAL SHE WOULD BE UNLIKELY TO CONTRIBUTE TO THE DEVELOPMENT OF OR DEBATE OVER MODERN CONSTITUTIONAL LAW BUT ALL THINGS CONSIDERED MR CLINTON LIKELY DID NOT PICK HER WITH THAT IN MIND MR EASTLAND IS A RESIDENT FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON 9303100085 930310 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL SET ASIDE HUNDREDS OF MILLIONS OF DOLLARS FOR TRAVEL AND TOURISM PROJECTS IN EASTERN AND CENTRAL EUROPE THOUGH THE LONDONBASED EBRD HAS INVESTED 50 MILLION IN THE REGION'S TRAVEL AND TOURISM SECTOR THIS WOULD BE THE FIRST COORDINATED EFFORT TO CHANNEL FUNDING THERE THE WORLD TRAVEL AND TOURISM COUNCIL AN ASSOCIATION OF INDUSTRY OFFICIALS THAT HELPED DEVELOP THE PLAN AND THE EBRD ARE EXPECTED TO COOPERATE ON APPLICATIONS FOR THE FUNDS MOST OF THE MONEY WOULD BE SET ASIDE FOR LOANS TO GOVERNMENTS FOR INFRASTRUCTURE PROJECTS RELATED TO TRAVEL AND TOURISM SUCH AS ROADS AND AIRPORTS OTHER CASH WOULD BE EARMARKED FOR FEASIBILITY STUDIES AND PRIVATESECTOR PROJECTS SUCH AS HOTELS THE EBRD AND THE COUNCIL SAID TOURISM CAN BOOST JOBS AND FOREIGN EXCHANGE REVENUES WITHOUT LARGESCALE INVESTMENT THOUGH WESTERN GERMANY'S ECONOMY CONTRACTED LESS THAN EXPECTED IN THE 1992 FOURTH QUARTER IT MARKED THE THIRD QUARTERLY SHRINKAGE IN A ROW GROSS DOMESTIC PRODUCT FELL A SEASONALLY ADJUSTED 1 FROM THE THIRD QUARTER BUT ROSE AN INFLATIONADJUSTED 1 FROM A YEAR EARLIER CAPITAL SPENDING DROPPED 46 THE DEEPEST YEARTOYEAR FALL SINCE THE 1984 SECOND QUARTER BUT EASTERN GERMANY'S ECONOMY IN 1992 ROSE A PRICEADJUSTED 68 REVISED FROM A PROVISIONAL 61 THE OVERALL GERMAN ECONOMY EXPANDED JUST 2 LAST YEAR SOUTH AFRICA'S FINANCE DEPARTMENT UNVEILED AN ECONOMIC RESTRUCTURING PROGRAM THAT AIMS TO STRIP AWAY PROTECTIONISM TO MAKE INDUSTRIES GLOBALLY COMPETITIVE THE PLAN WHICH GOES TO PARLIAMENT WOULD REMOVE IMPORT SURCHARGES AND WAGE RESTRAINTS IT TARGETS GROWTH IN INFLATIONADJUSTED GROSS DOMESTIC PRODUCT AT 45 BY 1997 LAST YEAR GDP DECLINED 2 IT WOULD CUT INFLATION TO 5 FROM LAST YEAR'S 14 RATE THE PROGRAM INVOLVES MORE SPENDING DISCIPLINE AND A SMALLER SCOPE FOR GOVERNMENT TAX RELIEF INDUSTRIAL REFORM CHANGES IN SOCIAL AND ECONOMIC PROGRAMS AND URBAN RECONSTRUCTION THE RUSSIAN DEFENSE INDUSTRY IS STEPPING UP INTERNATIONAL MARKETING EFFORTS TO SELL A SATELLITELOFTING SERVICE USING ITS LONGRANGE BOMBERS THE INTERFAX NEWS AGENCY SAID FROM REMODELED TUPOLEV TU160 BLACKJACK BOMBERS IN FLIGHT THE BURLAK COMPLEX CO SERVICE CAN LAUNCH A ROCKET CARRYING ONETON TELECOMMUNICATIONS OR RECONNAISSANCE SATELLITES AND SEND THEM INTO ORBIT FEES RANGE FROM 6000 TO 8000 A KILOGRAM 22 POUNDS THE NEW SOUTH KOREAN PRESIDENT KIM YOUNG SAM ORDERED HIS CABINET TO REMOVE OR RELAX REGULATIONS ON BUSINESS ACTIVITIES IN A BID TO REVITALIZE THE SLOWING ECONOMY ECONOMIC DEREGULATION IS A LONGTERM REMEDY MR KIM PROMISED DURING HIS CAMPAIGN HEAVY GOVERNMENT CONTROLS THROUGH CENTRAL PLANNING HAVE TRANSFORMED SOUTH KOREA'S FARM ECONOMY INTO AN INDUSTRIAL POWERHOUSE IN A FEW DECADES BUT THE CONTROLS ARE VIEWED AS UNDERMINING PRIVATESECTOR EFFICIENCY SWITZERLAND'S PARLIAMENT AUTHORIZED THE GOVERNMENT TO PROPOSE GUNCONTROL LAWS WHICH WOULD FACE STRONG OPPOSITION IN A COUNTRY WITH A TRADITION OF BEARING ARMS PRO TELL THE BIG GUN LOBBY NAMED AFTER THE MYTHICAL CROSSBOWBEARING SWISS INDEPENDENCE HERO WILLIAM TELL VOWED TO FIGHT ANY PROPOSALS SAYING WEAPONS LAWS DON'T CURB CRIME SWISS VOTERS WILL HAVE THE FINAL SAY ON THE QUESTION IN A REFERENDUM THIS YEAR DESPITE A BAN ON ILLEGAL ARMS EXPORTS SUBMACHINE GUNS MAY BE BOUGHT WITHOUT A PERMIT AND SWITZERLAND HAS BECOME A WEAPONS SUPERMARKET A SWEDISH GOVERNMENT COMMISSION URGED SHRINKING THE GENEROUS WELFARE STATE BY ADOPTING SWEEPING POLITICAL AND ECONOMIC REMEDIES TO CONTROL THE SOARING BUDGET DEFICIT AND RESTORE THE COUNTRY TO ECONOMIC HEALTH THE PANEL'S 113 PROPOSALS RANGE FROM TAXPOLICY CHANGES TO SCHOOL IMPROVEMENTS THEY INCLUDE REFERENDUMS ON TAX INCREASES CUTS IN GOVERNMENT EMPLOYMENT AND SPENDING AND TRANSFERS OF PARTS OF THE SOCIAL SECURITY SYSTEM TO THE PRIVATE SECTOR THE COMMISSION SAID ITS IDEAS COULD SAVE 133 BILLION OVER FIVE YEARS COMPARED WITH 4 BILLION UNDER A PLAN BY THE CONSERVATIVELED GOVERNMENT SINCE THE 1970S SWEDEN'S PUBLIC SECTOR HAS HANDLED ALL HEALTH CARE AND HAS EXPANDED INTO AREAS SUCH AS ADMINISTERING SICK LEAVE AND SUBSIDIZING HOUSING BUT THE GOVERNMENT CAN NO LONGER MEET BASIC OBLIGATIONS THE COST OF WHICH IMPEDES ECONOMIC GROWTH SWEDEN'S BUDGET DEFICIT HAS SWOLLEN TO 200 BILLION KRONOR 2624 BILLION OR 12 OF GROSS DOMESTIC PRODUCT INDUSTRIAL PRODUCTION HAS SLUMPED AND UNEMPLOYMENT HIT 12 LAST YEAR THE HIGHEST LEVEL SINCE THE 1930S FINANCIAL MARKETS ARE IN DISARRAY WITH BANKS HURT BY HUGE LOAN LOSSES LAWYERS IN ATHENS GREECE RETURNED TO COURT AFTER A SIXMONTH STRIKE THAT CAUSED 525000 CASES TO BE POSTPONED COSTING THE STATE TENS OF MILLIONS OF DOLLARS IN FEES AND FINES THE 14700MEMBER ATHENS BAR ASSOCIATION WAS PROTESTING LEGISLATION THAT WOULD INCREASE LAWYERS' PENSION CONTRIBUTIONS THE UKRAINIAN CITY OF CHERNOVTSY HIRED KARATE PRACTITIONERS TO HELP COLLECT BUS FARES AFTER REPEATED ATTACKS ON TRANSIT WORKERS INCLUDING MANY WOMEN 9303100084 930310 TUESDAY'S MARKETS DOW INCHES UP TO A RECORD BOND PRICES FALL BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE INCHED HIGHER TO ITS SECOND STRAIGHT RECORD BOND PRICES FELL AND THE DOLLAR ROSE THE DOW JONES INDUSTRIALS GAINED 270 POINTS TO A RECORD 347212 STANDARD & POOR'S 500STOCK INDEX SHED 031 TO 45440 AND THE NASDAQ COMPOSITE INDEX ROSE 173 TO 68896 ANALYSTS SAID INVESTORS WERE ENCOURAGED STOCK PRICES DIDN'T SUFFER A HEAVY BOUT OF PROFITTAKING AFTER THE DOW JONES INDUSTRIALS SURGED NEARLY 65 POINTS TO A RECORD ON MONDAY THERE ARE STILL PLENTY OF BUYERS IN THE WINGS LOOKING FOR ANY WEAKNESS AS AN ENTRY POINT SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER INVESTORS ARE FURTHER HEARTENED BY SIGNS THAT CONGRESS IS JUMPING ON THE DEFICITREDUCTION BANDWAGON CONGRESS IS APPARENTLY TRYING TO OUTDO THE PRESIDENT IN TERMS OF SPENDING CUTS SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS I AM DUMBFOUNDED THIS IS NOT BUSINESS AS USUAL BUT MR SOHN WARNED INVESTORS AGAINST BECOMING TOO OPTIMISTIC HE POINTED OUT THAT CONGRESS HAS STUMBLED IN THE PAST AFTER MAKING BIG PROMISES AND A FAILURE THIS TIME COULD HAVE SEVERE RAMIFICATIONS WE'RE BUILDING UP A LOT OF HOPE MR SOHN SAID IF THERE'S A BIG DISAPPOINTMENT THE REACTION COULD BE WORSE THAN ANYONE EXPECTS WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 013 TO 9819 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2901 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1130 ISSUES ROSE AND 825 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT THE YIELD ROSE TO 674 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16670 MARKS AND 11775 YEN COMPARED WITH 16635 MARKS AND 11675 YEN MONDAY 9303100083 930310 INTERNATIONAL BRIEF FRIED KRUPP AG STEELWORKS TO BE SHUTTERED IN RHEINHAUSEN GERMANY GERMAN STEEL AND ENGINEERING GROUP FRIED KRUPP AG HERALDING A ROUND OF MAJOR STEEL PLANT CLOSURES THROUGHOUT THE EUROPEAN COMMUNITY SAID IT WOULD SHUT ITS STEELWORKS AT RHEINHAUSEN IN GERMANY'S RUHR VALLEY IN ADDITION TO ELIMINATING 2100 JOBS AT RHEINHAUSEN RESTRUCTURING EFFORTS WILL REMOVE 2400 MORE JOBS BY MID1994 FROM THE DORTMUND GERMANY STEELWORKS OF HOESCH STAHL A STEEL COMPANY IN THE PROCESS OF BEING MERGED INTO KRUPP KRUPP STAHL CHAIRMAN JUERGEN HARNISCH SAID CLOSING THE RHEINHAUSEN WORKS WILL IMPROVE ANNUAL EARNINGS BY 240 MILLION MARKS 1443 MILLION KRUPP'S AND HOESCH'S JOINT CAPACITY WILL DECREASE TO ABOUT 65 MILLION TONS A YEAR FROM AROUND 87 MILLION TONS UNDERSCORING THE WEAKNESS IN THE STEEL INDUSTRY THE GERMAN STEEL FEDERATION ANNOUNCED A CONTINUED DROP IN ORDERS FOR GERMAN STEEL FROM GERMANY AND EC PARTNERS IN THE LAST QUARTER OF 1992 STEEL ORDERS IN THE FOURTH QUARTER FELL 18 TO 773 MILLION TONS FROM THE THIRD QUARTER AND SLID 79 FROM A YEAR EARLIER 9303100082 930310 MARKETING & MEDIA SAKS FIFTH AVENUE WILL PEDDLE WARES ON QVC NETWORK ACCORD COULD SPAWN OTHERS AND BE MEDIUM'S DIAMOND INSTEAD OF CUBIC ZIRCONIUM BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SAKS FIFTH AVENUE A NEW YORK RETAILING CHAIN AGREED TO BECOME THE FIRST MAJOR SPECIALTY STORE TO SELL ITS MERCHANDISE THROUGH QVC THE TELEVISION SHOPPING NETWORK THE AGREEMENT IS LIKELY TO SPAWN SIMILAR DEALS WITH OTHER SPECIALTY RETAILERS AND FASHION DESIGNERS ALREADY QVC HAS HAD TALKS WITH CALVIN KLEIN BLOOMINGDALES REVLON AND A HOST OF OTHERS ABOUT SELLING THEIR WARES ON TV THREE MONTHS AGO THIS HOME SHOPPING WAS A JOKE SAYS PETER SIRIS A RETAIL ANALYST WITH UBS SECURITIES NOW YOU WILL SEE A CASCADE OF BIG NAMES AND DESIGNERS COMING ON BOARD SUCH NEWCOMERS WOULD BRING UPSCALE CACHE TO A MEDIUM MORE WIDELY KNOWN FOR SELLING CUBIC ZIRCONIUM IN RECENT MONTHS NEW DEVELOPMENTS HAVE SWAYED SKEPTICS ENTERTAINMENT MOGUL BARRY DILLER STEPPED IN AS CHAIRMAN IN DECEMBER INVESTING 25 MILLION FOR A STAKE IN QVC MR DILLER WAS INITIALLY INSPIRED BY THE HOME SHOPPING MEDIUM WHEN HE SAW DESIGNER DIANE VON FURSTENBERG SELL SOME 2 MILLION OF HER LINE OF SILK BLOUSES IN A MATTER OF HOURS AND LAST MONTH THE JUSTICE DEPARTMENT APPROVED THE PURCHASE OF HOME SHOPPING NETWORK BY ONE OF QVC'S BIGGEST OWNERS LIBERTY MEDIA CORP INDUSTRY ANALYSTS PREDICT LIBERTY WILL MERGE THE TWO SHOPPING NETWORKS INTO A 2 BILLION A YEAR ENTITY THOUGH THE COMPANY HAS REPEATEDLY DENIED ANY SUCH PLANS ANALYSTS PREDICT THAT TV SHOPPING WILL BECOME LIKE CATALOG SHOPPING WHERE PRODUCTS AND CLOTHES ARE SEGMENTED BY LIFESTYLE AND DEMOGRAPHICS VIEWERS COULD GO FROM THE TOOL CHANNEL TO A WOMEN'S CLOTHING CHANNEL WITH THE FLICK OF A REMOTE CONTROL DEVICE SAKS' FIRST HOURLONG PROGRAM WITH QVC WILL AIR IN MAY FEATURING THE STORE'S EXCLUSIVE BRAND OF WOMEN'S SPORTSWEAR REAL CLOTHES OTHER PROGRAMS ARE BEING PLANNED FOR SPRING FALL AND THE HOLIDAY SEASON ON QVC WHICH REACHES 44 MILLION CABLE HOMES TERMS OF THE SAKS DEAL WITH QVC WEREN'T DISCLOSED ASIDE FROM SALES QVC ALSO OFFERS A POWERFUL ADVERTISING VEHICLE SAKS AND OTHER RETAILERS WILL BENEFIT HUGELY FROM MODELS SAUNTERING DOWN RUNWAYS AS HOSTS TALK ABOUT THE CLOTHES A SAKS EXECUTIVE WILL JOIN THE REGULAR ONAIR QVC HOST AND FASHION MODELS DURING EACH PROGRAM BUT THE NETWORK MUST BE CAREFUL NOT TO GO OVERBOARD WITH DESIGNER LABELS AT LEAST FOR NOW FOR FEAR OF ALIENATING THEIR CURRENT CROP OF LOYAL VIEWERS AND BUYERS THEY CAN'T AFFORD TO GO UPSCALE TOO MUCH TOO QUICKLY SAYS MR SIRIS THEY MUST SEGMENT THE MARKET SAKS FIFTH AVENUE IS OWNED BY AN INVESTMENT GROUP ASSEMBLED BY INVESTCORP BANK EC BASED IN BAHRAIN 9303100081 930310 GTE'S PHONE UNIT SEEKS FURTHER CUTS IN US WORK FORCE STAMFORD CONN GTE CORP SAID ITS MAIN TELEPHONE SUBSIDIARY PLANS TO FURTHER REDUCE ITS US WORK FORCE IN A CONTINUING EFFORT TO STAY COMPETITIVE WITH OTHER TELECOMMUNICATIONS COMPANIES THE REDUCTIONS WILL BE SOUGHT THROUGH A COMBINATION OF SEPARATION AND EARLY RETIREMENT INCENTIVES THE UNIT GTE TELEPHONE OPERATIONS WHICH IS BASED IN IRVING TEXAS SAID IT HAS NO SPECIFIC JOB REDUCTION TARGETS ABOUT 26000 SALARIED WORKERS OR NEARLY ALL DOMESTIC MANAGEMENT EMPLOYEES WOULD BE ELIGIBLE UNDER THE PLAN IT SAID THE COMPANY ALSO SAID IT IS NEGOTIATING WITH ITS UNION A SIMILAR PLAN OFFERING EARLY RETIREMENT FOR HOURLY EMPLOYEES AT CERTAIN LOCATIONS GTE TELEPHONE HAS ABOUT 81000 DOMESTIC SALARIED AND HOURLY EMPLOYEES GTE TELEPHONE'S CALIFORNIA OPERATIONS SAID MORE THAN 5300 OF THE STATE'S 22000 MANAGEMENT AND HOURLY EMPLOYEES WILL BE ELIGIBLE FOR THE PROGRAM ONLY MANAGEMENT EMPLOYEES ARE ALSO ELIGIBLE FOR THE VOLUNTARY SEPARATION PROGRAM GTE TELEPHONE HAS CUT MORE THAN 19000 POSITIONS NATIONWIDE SINCE IMPLEMENTING A RETRENCHMENT PROGRAM IN 1988 THE COMPANY NOW SEEKS TO MAKE FURTHER REDUCTIONS TO STAY COMPETITIVE A SPOKESMAN SAID EMPLOYEES CHOOSING TO RETIRE OR LEAVE HAVE UNTIL MAY 5 TO DECIDE AND THEN MAY WORK THROUGH MAY 21 WITH BENEFITS SCHEDULED TO BEGIN JULY 1 GTE SAID GTE TELEPHONE HAD 159 BILLION IN REVENUE IN 1992 AND HAS ABOUT 121000 EMPLOYEES WORLDWIDE IT COMPRISES ABOUT 85 OF GTE CORP A TELECOMMUNICATIONS EQUIPMENT AND SERVICE COMPANY 9303100080 930310 OFFICIALS FIND 85 MILLION IN DEPOSED LEADER'S OFFICE TOKYO PROSECUTORS REPORTEDLY SEIZED GOLD BARS AND CASH WEIGHING SEVERAL HUNDRED POUNDS AND VALUED AT 1 BILLION YEN 85 MILLION FROM THE OFFICES OF A DISGRACED POLITICAL LEADER A SHOCKING HOARD EVEN BY THE STANDARDS OF JAPAN'S NOTORIOUSLY MONEYSTAINED POLITICS THE RAID WAS THE LATEST TWIST IN THE SAGA OF SHIN KANEMARU UNTIL LAST YEAR THE PARAMOUNT BEHINDTHESCENES LEADER OF THE RULING LIBERAL DEMOCRATIC PARTY MR KANEMARU 78 AND AN AIDE WERE ARRESTED SATURDAY ON SUSPICION OF TAX EVASION MR KANEMARU IS EXPECTED TO BE INDICTED AT LEAST FOR SOME CHARGES BEFORE THE STATUTE OF LIMITATIONS RUNS OUT FOR ANY CRIMES COMMITTED IN 1987 EVERY DAY SINCE HIS ARREST THE REPORTED SCALE OF MR KANEMARU'S WRONGDOINGS HAS GROWN THE KYODO WIRE SERVICE REPORTED THAT PROSECUTORS NOW SUSPECT MR KANEMARU AND HIS FORMER SECRETARY MASAHISA HAIBARA OF BUYING 5 BILLION YEN WORTH OF SPECIAL DISCOUNTED BONDS THE BONDS ARE COMMONLY USED IN JAPAN FOR MONEYLAUNDERING AND TAX EVASION BECAUSE THEY DON'T HAVE TO BE REGISTERED MR KANEMARU WAS FORCED TO RESIGN FROM PARLIAMENT LAST YEAR AFTER ADMITTING TAKING ILLEGAL CAMPAIGN CONTRIBUTIONS 9303100079 930310 MCDONNELL GETS A BAD REVIEW ON C17 WORK BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MCDONNELL DOUGLAS CORP MANAGEMENT RECEIVED A SCATHING REVIEW FROM THE MAN WHO REPRESENTED THE AIR FORCE AT THE PLANT PRODUCING THE MULTIBILLIONDOLLAR C17 MILITARY TRANSPORT JET KENNETH TOLLEFSON A RETIRED COLONEL WHO WAS COMMANDER OF THE AIR FORCE'S CONTRACT MANAGEMENT OFFICE AT THE LONG BEACH CALIF FACILITY FOR FIVE YEARS UNTIL LAST JUNE DESCRIBED A LACK OF LEADERSHIP AND CHAOS ON THE FACTORY FLOOR AT MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR THE SIMPLE REALITY IS THAT THE PROGRAM IS BEHIND SCHEDULE AND OVER BUDGET BECAUSE OF DOUGLAS'S INABILITY TO EXECUTE HE TOLD A JOINT HEARING OF TWO HOUSE ARMED SERVICES SUBCOMMITTEES DESCRIBING HIMSELF AS A C17 ADVOCATE WHO BELIEVES THE NATION NEEDS BOTH THE AIRCRAFT AND MCDONNELL DOUGLAS COL TOLLEFSON RAISED THE STAKES FOR THE C17 BY ESSENTIALLY ARGUING THAT WHAT THE COMPANY NEEDS IS MORE MONEY FROM THE PENTAGON WHILE THAT ARGUMENT COULD RESULT IN MCDONNELL DOUGLAS RECEIVING UNUSUAL FINANCIAL ASSISTANCE IT ALSO IS LIKELY TO INCREASE CONGRESSIONAL SENTIMENT IN FAVOR OF CANCELING THE TROUBLED PROGRAM ALTOGETHER COL TOLLEFSON'S CHARGES ARE SIMILAR TO EARLIER CRITICISMS OF THE COMPANY BUT THEY WERE MADE AT A CRITICAL PLACE AND TIME WHEN CONGRESS IS SEARCHING FOR BILLIONS IN NEW BUDGET CUTS AFTER THE HEARING THE NEW CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITTEE RON DELLUMS D CALIF INDICATED THAT HE CONSIDERS CANCELLATION OF THE PROGRAM ONE OF SEVERAL OPTIONS THAT WILL BE CONSIDERED IN THE MANY HEARINGS ON THE C17 TO BE HELD IN COMING WEEKS AT YESTERDAY'S HEARING COL TOLLEFSON TESTIFIED THAT A COMPANY EXECUTIVE ONCE DISMISSED 66 SPECIFIC AIR FORCE COMPLAINTS ABOUT THE COMPANY'S CONTRACT FAILURES BY SAYING THAT MCDONNELL DOUGLAS'S WASHINGTON LOBBYIST PROBABLY DIDN'T BELONG TO THE RIGHT COUNTRY CLUBS THE COLONEL ALSO SAID HIS BOSSES IN THE AIR FORCE SUPPRESSED ADVERSE INFORMATION ABOUT THE C17 OUT OF FEAR THAT IF THE BAD NEWS GOT OUT THE PROGRAM WOULD BE CANCELED HE SAID THE COMPANY SHOULD BE REQUIRED TO SUBMIT A REVISED PRODUCTION SCHEDULE AND SUPPORT IT WITH A BELIEVABLE BUDGET BUT SEVERAL MEMBERS OF THE ARMED SERVICES PANEL ESPECIALLY NEWER ONES WHO HADN'T PREVIOUSLY BEEN EXPOSED TO THE C17'S PROBLEMS BALKED AT THE THOUGHT OF SHOVELING BILLIONS MORE INTO THE PROGRAM AFTER THE HEARING REP DELLUMS COMMENTED THAT'S GOING TO BE A DIFFICULT OPTION AT A BREAKFAST WITH REPORTERS MONDAY DAVID SWAIN THE MCDONNELL DOUGLAS OFFICIAL OVERSEEING THE C17 SAID SOME OF OUR PEOPLE WEREN'T AS SENSITIVE TO GOVERNMENT REGULATIONS AND PROCEDURES AS THEY SHOULD HAVE BEEN HE ALSO ARGUED THAT THE C17 IS A GENERALLY GOOD AIRCRAFT THAT HAS BEEN TROUBLED BY A FLAWED ACQUISITION PROCESS RESPONDING TO A QUESTION ABOUT THE POSSIBLE FINANCIAL IMPACT ON THE COMPANY IF THE C17 IS TERMINATED MR SWAIN SAID GENERALLY IT WOULDN'T BE NEGATIVE THIS YEAR BUT IN THE LONG RUN IT WOULD HAVE A NEGATIVE EFFECT ON THE COMPANY'S REVENUE AND PROFIT AND RESULT IN THE LOSS OF MORE THAN 30000 JOBS NATIONWIDE INCLUDING 20000 OUTSIDE MCDONNELL DOUGLAS HE SAID 9303100078 930310 BUSINESS BRIEF GENERAL MOTORS CORP CANADIAN UNIT WILL OFFER VISA CREDIT CARD PROGRAM GENERAL MOTORS CORP'S CANADIAN SUBSIDIARY UNVEILED A VISA CREDIT CARD FOR THE CANADIAN MARKET FOLLOWING IN THE FOOTSTEPS OF ITS PARENT'S HIGHLY SUCCESSFUL US CREDIT CARD PROGRAM GM CANADA IN TORONTO HOPES THAT THE NEW CARD WHICH IS BEING OFFERED THROUGH TORONTODOMINION BANK WILL BOOST SALES OF GM CARS IN CANADA BUT THE NEW CARD ALSO MIGHT HAVE DONE ALL CANADIAN CONSUMERS A FAVOR BECAUSE IT DOESN'T CARRY AN ANNUAL FEE UNLIKE IN THE US WHERE NOFEE CREDIT CARDS HAVE BECOME FAIRLY COMMON CANADIANS PAY ABOUT 12 CANADIAN DOLLARS US965 A YEAR FOR A BASIC VISA CARD MASTERCARD CREDIT CARDS ARE AVAILABLE IN CANADA WITHOUT AN ANNUAL FEE BY USING THE NEW GM CANADA CARD CONSUMERS BUILD UP A SOCALLED REBATE ACCOUNT THAT CAN BE CREDITED TOWARD THE PURCHASE OR LEASE OF A GM CAR CONTRIBUTIONS TO THE ACCOUNT CONSIST OF 5 OF THE AMOUNT PURCHASED WITH THE CARD THESE CAN ACCRUE UP TO C500 A YEAR OR A MAXIMUM OF C3500 OVER SEVEN YEARS THE FIRST CARDS WILL BE ISSUED IN JUNE 9303100077 930310 BUSINESS BRIEF INLAND STEEL CORP FIRM TO PAY 545 MILLION TO SETTLE POLLUTION LAWSUIT INLAND STEEL CORP AGREED TO PAY 545 MILLION IN CIVIL PENALTIES AND CLEANUP COSTS TO SETTLE A 1990 POLLUTION LAWSUIT FILED BY THE US ENVIRONMENTAL PROTECTION AGENCY THE SUIT STEMMED FROM POLLUTION AT THE COMPANY'S EAST CHICAGO IND STEEL MILL UNDER THE CONSENT DECREE FILED IN FEDERAL COURT FOR THE NORTHERN DISTRICT OF INDIANA THE COMPANY WILL PAY A 295 MILLION CIVIL PENALTY IN ADDITION TO AGREEING TO SPEND ABOUT 25 MILLION ON A COMPREHENSIVE CLEANUP PROGRAM THE CIVIL PENALTY COMPRISES A 35 MILLION CASH FINE AND 26 MILLION TO BE SPENT ON SUPPLEMENTAL PROJECTS OVER THE NEXT DECADE THAT WILL IMPROVE THE ENVIRONMENT AROUND THE PLANT INLAND WILL SPEND 19 MILLION TO CLEAN UP CONTAMINATED SEDIMENTS IN THE INDIANA HARBOR AND SHIP CANAL NEXT TO ITS PROPERTY AND STUDY AND SAMPLE SEDIMENTS ANOTHER 7 MILLION WILL BE SPENT ON PROJECTS AT THE MILL TO PREVENT OR REDUCE POLLUTION IN EPA SUIT CHARGED THE COMPANY WITH VIOLATIONS THAT INCLUDED EXCEEDING LIMITS OF ITS WASTEWATER DISCHARGE PERMIT FOR NUMEROUS POLLUTANTS DURING THE PERIOD THAT THE COMPLAINT REFERRED TO SEVERAL PROBLEMS HIT US ALL AT ONCE ALTHOUGH MOST OF THEM HAD BEEN CORRECTED BY THE TIME THE COMPLAINT ACTUALLY WAS FILED SAID MS SANDY NELSON JR INLAND'S PRESIDENT 9303100076 930310 TECHNOLOGY WANG LABORATORIES INC SOFTWARE TO BE DEVELOPED FOR HEWLETTPACKARD CO WANG LABORATORIES INC LOWELL MASS SAID IT WILL DEVELOP ITS INTEGRATED IMAGING AND OFFICE SOFTWARE PRODUCTS TO RUN ON HEWLETTPACKARD CO'S UNIXBASED SERIES OF MIDRANGE COMPUTERS AND SERVERS THE AGREEMENT ALSO CALLS FOR WANG TO MARKET AND RESELL THE HP 9000 SERIES 800 BUSINESS SERVERS WORLDWIDE IN ADDITION TO THE MARKETING EFFORTS BY BOTH COMPANIES' THIRDPARTY INDEPENDENT DISTRIBUTORS THE ARRANGEMENT IS EXPECTED TO BRING IN ABOUT 100 MILLION IN ADDITIONAL BUSINESS OVER THE NEXT THREE YEARS FOR HEWLETTPACKARD SAID BERNARD GUIDON WORLDWIDE MANAGER OF HEWLETTPACKARD'S 9000 SERIES A WANG SPOKESMAN DECLINED TO SPECIFY THE VOLUME OF NEW BUSINESS THE AGREEMENT IS EXPECTED TO GENERATE FOR WANG WANG CURRENTLY DEVELOPS A SIMILAR IMAGING AND OFFICE AUTOMATION SOFTWARE LINE FOR INTERNATIONAL BUSINESS MACHINES CORP'S MIDRANGE COMPUTERS WHICH IS RESOLD UNDER THE WANG NAME THE HP 9000 SERIES HOWEVER WILL CARRY THE HEWLETTPACKARD LABEL 9303100074 930310 FORM + FUNCTION BY JOHN PIERSON IF THUMBS DOWN IS BAD FOR GLADIATORS CONSIDER THE DOWNHILL SKIER A SKIER WHO FALLS HAS A GOOD CHANCE OF BANGING HIS THUMB ON THE GROUND BENDING IT SHARPLY BACKWARD AND TEARING THE TENDON THAT ALLOWS PEOPLE TO OPEN CAR DOORS SHIFT GEARS ON A MOUNTAIN BIKE OR HOLD A WINE GLASS SKIER'S THUMB RANKS SECOND IN THE SPORT'S PERILS ONLY TO KNEE INJURIES WITH A CONVENTIONAL POLE THE THUMB IS LEFT HANGING OUT IN THE BREEZE WITH A TENDENCY TO SNAG IN THE SNOW SAYS ANDREW BASOS AN ORTHOPEDIC SURGEON IN NEW YORK DR BASOS AND ANOTHER SURGEON CHRISTOPHER PROCTOR STARTED WORKING ON THE PROBLEM AFTER THEY BOTH INJURED THEIR THUMBS SKIING THEIR THUMBSPARING SKI POLE GRIP DESIGNED BY STUDIO VIRTUAL COLD SPRING NY LOOKS LIKE AN AFRICAN SCULPTURE BUT THEY SAY SHIELDS THE THUMB UNDER A CURLING WAVE OF PLASTIC AND RUBBER IT ALSO IS DESIGNED TO LET SKIERS RELEASE THE POLE WITHOUT PULLING THE THUMB AWAY FROM ITS PROTECTED POSITION NEXT TO THE HAND TWO SKIERS BOTH FORMER THUMB SUFFERERS LIKE THE GRIP ALBERT TERVALON A GENERAL MANAGER WITH FURNITURE MAKER HERMAN MILLER INC IN ZEELAND MICH SAYS NO MATTER HOW YOU FALL WITH THIS GRIP YOU CAN'T JAM YOUR THUMB AND KEVIN CASSIDY A SENIOR VICE PRESIDENT AT HNWH RADIO SALES A DALLAS COMPANY THAT SELLS AD TIME ON RADIO STATIONS SAYS THAT INSTEAD OF WRAPPING YOUR HAND AROUND THE POLE WHERE IT'S VULNERABLE THE POLE WRAPS AROUND YOUR HAND OTHER SOLUTIONS TO SKIER'S THUMB ARE ALREADY ON THE MARKET KOMBI NAUGATUCK CONN SELLS A GLOVE WITH A STEEL SPLINT INSIDE THAT KEEPS THE THUMB FROM BENDING BACK ITS INVENTOR JOEL EISENBERG A BRIDGEPORT CONN ORTHOPEDIST SAYS THE GLOVE REDUCES THE RATE OF THUMB INJURIES TO ONE EVERY 170000 HOURS OF SKIING FROM ONE EVERY 8000 HOURS THOMAS LAJOS A HEART SURGEON IN GETZVILLE NY HAS DESIGNED A GRIP THAT'S LIKE A SABER HANDLE WITH A SEPARATE THUMB CHANNEL THE LAJOS SKI GRIP IS TIGHT ENOUGH TO PROTECT THE THUMB BUT LOOSE ENOUGH TO ALLOW A QUICK RELEASE SAYS DR LAJOS ENGINEERS ARE TRYING TO FIGURE OUT HOW TO MAKE THE GOLDEN GATE BRIDGE BETTER ABLE TO WITHSTAND EARTHQUAKES WITHOUT SPOILING ITS LOOKS COMPUTER STUDIES SHOW THAT IN A BIG QUAKE LIKE THE ONE THAT DEVASTATED SAN FRANCISCO IN 1906 THE WORLD'S MOST FAMOUS SUSPENSION BRIDGE MIGHT FALL DOWN TO KEEP THE GOLDEN GATE BRIDGE STANDING ENGINEERS ARE PLANNING 132 MILLION OF STRUCTURAL IMPROVEMENTS MOST OF THE CHANGES WILL BE INVISIBLE TO THE UNPRACTICED EYE THEY SAY YOU WON'T BE ABLE TO TELL THE DIFFERENCE SAYS DONALD MACDONALD AN ARCHITECT WHO HAS HELPED SET DESIGN CRITERIA FOR THE JOB RIVETS CAN BE SEAMLESSLY REPLACED WITH HIGHSTRENGTH BOLTS DAMPING MATERIAL CAN BE SLIPPED BETWEEN THE TOWERS AND THE ENDS OF THE TRUSSES THIN STEEL PLATES CAN BE BOLTED TO THE TOWER BASES ORNAMENTAL ART DECO PYLONS MARKING THE ENTRANCES TO THE BRIDGE CAN BE BRACED INSIDE THE MAIN AESTHETIC CHALLENGE IS THE THOUSANDS OF LACELIKE COLUMNS GIRDERS BEAMS AND OTHER MEMBERS OF WHICH 10 WILL HAVE TO BE REPLACED WITH SOLID STEEL BUT NONE OF THESE REPLACEMENTS WILL BE ON THE MOST VISIBLE CENTRAL SUSPENSION BRIDGE MR MACDONALD SAYS IT'S A BEAUTIFUL MONUMENT SAYS CHUCK SEIM PROJECT ENGINEER FOR TY LIN INTERNATIONAL A SAN FRANCISCO ENGINEERING FIRM THAT WILL DO PART OF THE WORK BUT WE'VE GOT TO KEEP IT FROM FALLING DOWN IN AN EARTHQUAKE AT LEAST ONE WATCHDOG GROUP SEEMS SATISFIED MARK RYSER EXECUTIVE DIRECTOR OF THE FOUNDATION FOR SAN FRANCISCO'S ARCHITECTURAL HISTORY SAYS HE'S CONFIDENT THE ENGINEERS WILL BE SENSITIVE TO THE BRIDGE'S LOOKS AN AMERICAN ICON IS IN DANGER OF BEING BROKEN BY AMERICAN OBSESSIONS WITH NOVELTY PROFITS AND SQUEAKY CLEANLINESS THE CONTINENTAL SUGAR POURER WITH THE FAMILIAR SLOPED TOP CAME TO MARKET IN 1956 AND HAS BEEN A FIXTURE EVER SINCE IN DINERS AND COFFEE SHOPS THE ORIGINAL DESIGN BY KECKCRAIG A SOUTH PASADENA CALIF DESIGN FIRM HASN'T CHANGED THROUGH THE YEARS EXCEPT FOR AN INVISIBLE MODIFICATION IN THE HINGE ON THE SPOUT FLAP COPYCATS HAVE FAILED TO PRODUCE A COMPETITIVE PRODUCT THE CONTINENTAL POURERS ARE SO POPULAR THAT MANY ARE STOLEN FROM RESTAURANTS BUT WHAT THIEVES CAN'T DO SINGLEHANDEDLY OTHER FORCES MAY ONE DAY ACCOMPLISH TOM LINDRUP A PRODUCT MANAGER WITH GORDON FOOD SERVICE GRAND RAPIDS MICH WHICH DISTRIBUTES RESTAURANT WARES SAYS CONTINENTAL'S POPULARITY IS PROBABLY BEGINNING TO WANE TO CONTROL COSTS MANY RESTAURANTS HAVE BEGUN REPLACING THEIR BULK POURERS WITH INDIVIDUAL PORTIONS OF SUGAR WRAPPED IN PAPER NEW SANITARY LAWS OFTEN REQUIRE BULK POURERS TO BE WASHED OUT EVERY WEEK OR SO AND THOUGH THE OWNER OF A FAMILY DINER INSISTS ON A CONTINENTAL POURER MR LINDRUP CONCLUDES THE CONTINENTAL DOESN'T FIT THE FANCY PRESENTATIONS THE CURRENT MAKER OF THE CONTINENTAL TRAEX IN DANE WIS FIGURES IT WILL BE COVERED IN ANY EVENT THE COMPANY MAKES SEVEN OTHER SUGAR POURERS PLUS HOLDERS FOR SINGLE PACKETS STILL SAYS TRAEX GENERAL MANAGER LEE LUFT THE CONTINENTAL IS SPECIAL THE TOP IS MADE OF VERY HEAVY ZINC HE SAYS IF YOU DROP IT ON THE FLOOR THE GLASS BREAKS NOT THE TOP 9303100073 930310 WHO'S NEWS BOEING TO TRIM BOARD TO 12 FROM 14 GIVES CHAIRMAN 15 RAISE A WALL STREET JOURNAL NEWS ROUNDUP BOEING CO WHICH HAS BEEN CUTTING BOTH PRODUCTION AND PERSONNEL DISCLOSED IN PRELIMINARY PROXY MATERIAL PLANS TO SHRINK ITS BOARD IT ALSO SHOWED A 15 INCREASE IN ITS CHAIRMAN'S SALARY AND BONUS LAST YEAR IN A FILING YESTERDAY WITH THE SECURITIES AND EXCHANGE COMMISSION THE SEATTLEBASED AIRCRAFT MAKER SAID IT WILL REDUCE ITS BOARD TO 12 FROM 14 WITH COMPULSORY RETIREMENTS AT AGE 72 OF GEORGE P SCHULTZ FORMER US DEFENSE SECRETARY AND TA WILSON FORMER BOEING CHAIRMAN BOEING DISCLOSED THAT FRANK SHRONTZ THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS PAID MORE THAN 13 MILLION IN SALARY AND BONUSES LAST YEAR UP 15 FROM THE PRIOR YEAR MR SHRONTZ ALSO REALIZED A FURTHER 249000 FROM THE EXERCISE OF OPTIONS LAST YEAR BRINGING HIS TOTAL CASH COMPENSATION TO ABOUT 16 MILLION MOREOVER MR SHRONTZ'S BONUS PORTION WHICH IS PAID IN THE YEAR FOLLOWING FOR PERFORMANCE IN THE PRIOR YEAR WAS BOOSTED TO 67 WITH A PAYMENT OF 554000 THIS YEAR FOR 1992 PERFORMANCE THE BONUS PAID MR SHRONTZ LAST YEAR FOR HIS 1991 PERFORMANCE WAS 519000 AND WAS PART OF THE 13 MILLION PAID IN 1992 IN ADDITION MR SHRONTZ WAS GRANTED STOCKAPPRECIATION RIGHTS LAST YEAR TO 31875 BOEING SHARES A TOTAL UNCHANGED FROM 1991 BOEING SAID THOSE SHARES WHICH ARE EXERCISABLE IN PORTIONS AT VARIOUS TIMES DURING THE NEXT 10 YEARS AT A PRICE OF 46 A SHARE HAVE A CURRENT VALUE OF ABOUT 626000 UNDER A SPECIFIC OPTIONPRICING MODEL BOEING HAS SAID IT PLANS TO SLASH ITS PAYROLL BY 28000 JOBS BY 1994 AS CIVILIAN AIRCRAFT ORDERS HAVE BEEN DELAYED AND MILITARY ORDERS SLIMMED A 20 CUT ANNOUNCED LAST MONTH THAT EXCEEDED EARLIER ESTIMATES 9303100072 930310 MARKETING & MEDIA SAABSCANIA AB FIRM'S US SALES ARM BANK TO JOINTLY OFFER CREDIT CARD SAAB CARS USA INC UNVEILED A GOLD VISA CREDIT CARD THAT WILL BE OFFERED JOINTLY WITH MBNA AMERICA BANK OF NEWARK DEL SAAB SAID IT ENTERED THE CROWDED CREDITCARD FIELD BECAUSE INITIAL TEST MARKETING OF THE VISA WAS POSITIVE THE AUTO MAKER SAID ONEFIFTH OF ALL SAAB OWNERS SENT AN APPLICATION APPLIED FOR THE CARD UNLIKE CREDIT CARDS ISSUED BY GENERAL MOTORS CORP AND FORD MOTOR CO SAAB'S VISA CARD WON'T OFFER A REBATE ON THE PURCHASE OR LEASE OF A SAAB VEHICLE THE AUTO MAKER'S CREDIT CARD CARRIES A 159 VARIABLE INTEREST RATE THE FIRST YEAR'S ANNUAL FEE IS WAIVED FUTURE ANNUAL FEES WHICH HAVEN'T YET BEEN DETERMINED MAY BE SUSPENDED DEPENDING ON THE CARD HOLDER'S CREDIT RATING SAAB SAID IT PLANS NO SPECIAL ADVERTISING TO LAUNCH THE CARD SAAB CARS USA IS THE US SALES ARM OF SAABSCANIA AB 9303100071 930310 GOODYEAR CHAIRMAN'S PAY WAS 182 MILLION IN '92 AKRON OHIO STANLEY C GAULT GOODYEAR TIRE & RUBBER CO'S CHAIRMAN WAS PAID 182 MILLION IN SALARY AND BONUS LAST YEAR ACCORDING TO THE COMPANY'S PROXY STATEMENT BUT WHILE MR GAULT'S COMPENSATION MORE THAN DOUBLED HIS 1991 COMPENSATION THE STOCK PORTION OF HIS PAY PACKAGE SHRANK HE RECEIVED OPTIONS AND STOCK APPRECIATION RIGHTS OF 75000 SHARES DOWN FROM 426000 SHARES IN 1991 THE SHARES GRANTED FOR 1992 ARE FULLY EXERCISABLE JAN 7 1994 AT 5375 A SHARE ACCORDING TO THE TIRE MAKER'S PROXY GOODYEAR'S COMMON STOCK CLOSED AT 74625 UP 375 CENTS YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GOODYEAR WOULD ONLY SAY THE SHIFT TO CASH WAS PARTLY BECAUSE MR GAULT WAS EMPLOYED FOR A FULL YEAR IN 1992 WHILE HE WORKED ONLY PART OF 1991 WHEN HE JOINED THE COMPANY THE TIRE MAKER WOULDN'T ELABORATE FURTHER ON THE CHANGE WHICH WASN'T TYPICAL FOR MOST CEOS LAST YEAR MR GAULT ALSO DIDN'T GET A RESTRICTED STOCK AWARD LAST YEAR IN 1991 HIS RESTRICTED STOCK AWARD WAS VALUED AT 19 MILLION THE BOARD'S COMPENSATION COMMITTEE BOOSTED MR GAULT'S SALARY EFFECTIVE JUNE 1 1992 TO AN ANNUAL RATE OF 900000 FROM 840000 IN RECOGNITION OF HIS OUTSTANDING PERFORMANCE IN LEADING THE COMPANY'S TURNAROUND THE PROXY SAID HIS BONUS JUMPED TO 945000 FROM 245000 9303100070 930310 EPA SEEKS 353000 IN PENALITIES FROM GE FOR ALLEGED VIOLATIONS SAN FRANCISCO THE ENVIRONMENTAL PROTECTION AGENCY'S REGIONAL OFFICE SAID IT IS SEEKING 353000 IN PENALTIES FROM GENERAL ELECTRIC CO FOR ALLEGED STORAGE AND DISPOSAL VIOLATIONS INVOLVING TOXIC POLYCHLORINATED BIPHENYLS OR PCBS THE EPA COMPLAINT ALLEGES THAT GE'S FACILITY IN ANAHEIM CALIF STORED PCB WASTE OUTSIDE ITS PERMANENT STORAGE AREAS FOR AT LEAST 49 DAYS BEYOND A 30DAY FEDERAL LIMIT IT ALSO ALLEGES THAT EPA INSPECTORS FOUND WORK AREAS AND SOIL CONTAMINATED BY THE TOXIC SUBSTANCE THE FACILITY IS A SERVICE SHOP FOR ELECTRICAL EQUIPMENT SUCH AS TRANSFORMERS WHICH CONTAIN PCBS THE PROPOSED PENALTIES COME A YEAR AFTER THE EPA TEMPORARILY PROHIBITED THE FACILITY FROM ACCEPTING PCB WASTE UNTIL IT CORRECTED VIOLATIONS IN ITS STORAGE PERMIT A SPOKESMAN FOR GE IN FAIRFIELD CONN SAID WE HAVE A STORY TO TELL AND WILL CONTEST THE PENALTY HE DECLINED TO ELABORATE BUT ADDED THAT GE MET WITH THE AGENCY A YEAR AGO WHEN THE PROBLEM FIRST AROSE AND WE HAVE FIXED ALL THE PROBLEMS AND THE SHOP IS IN GOOD SHAPE 9303100069 930310 REVIEW & OUTLOOK EDITORIAL MOSCOW SPRING IS RUSSIA TOTTERING INTERESTED PARTIES AS DIVERSE AS BILL CLINTON AND RICHARD NIXON THINK IT MAY BE AND THE AIR IS FULL OF TALK ABOUT FUNNELING MONEY IN BORIS YELTSIN'S DIRECTION WITHOUT WORRYING MUCH ABOUT WHAT HAPPENS TO IT WE DON'T DENY THAT THE STREAM OF REPORTS ABOUT MR YELTSIN'S BATTLES WITH HIS OPPONENTS WOULD DRIVE A REASONABLE PERSON INTO DESPONDENCY OVER RUSSIA'S PROSPECTS BUT A USEFUL RULE OF THUMB IN RUSSIAN AFFAIRS NOW IS DON'T ASSUME THAT THERE IS ANY DIRECT LINK BETWEEN THE COUNTRY'S POLITICAL TURMOIL AND THE PACE OF ECONOMIC REFORM BORIS YELTSIN AND THE RUSSIAN PARLIAMENT ARE BATTLING FOR POWER UNDER RULES SET OUT IN A BREZHNEVERA CONSTITUTION AND SO THE POLITICIANS SQUABBLE RUSSIA'S BURGEONING PRIVATE SECTOR HOWEVER HAS TO GET ON WITH BUSINESS WHICH IT IS DOING LEAVING GOVERNMENT WAY BEHIND SMALL SHOPS HAVE SPRUNG UP IN PRODIGIOUS NUMBERS WITH ROUGHLY A THIRD OF THE NATION NOW LIVING OFF SOME PRIVATE INCOME A LOT OF THE NEW RUSSIANS DRIVING BMWS ARE REAL BUSINESSMEN RATHER THAN MERELY MAFIOSO ENTREPRENEURS HAVE EVEN MANAGED TO EVADE THE CURRENCY AND OTHER CONTROLS THAT HAVE DECIMATED INTERREPUBLIC TRADE THE JOURNAL'S ELISABETH RUBINFEIN REPORTS FROM SIBERIA THAT ECONOMIC TRADE IS PICKING UP SMARTLY THERE 2790 MILES AWAY FROM MOSCOW THE POLITICAL TURMOIL THUS FAR HAS HAD RELATIVELY LITTLE EFFECT ON THE PRIVATIZATION AGENCIES ABOUT 45000 SMALL ENTERPRISES HAVE BEEN PRIVATIZED UNDER THE LEADERSHIP OF ANATOLY CHUBAIS THE FEDERAL GOVERNMENT NOW AIMS TO PRIVATIZE 500 LARGE COMPANIES A MONTH THIS IS AN AMBITIOUS GOAL IN OUR CONVERSATIONS WITH OFFICIALS FROM THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHICH IS DOING SOME GOOD WORK IN THE CIS WE ARE STRUCK BY WHAT A DOGGED PROCESS PRIVATIZATION IS ENTERPRISES OFTEN DON'T KNOW WHAT THEY OWN THE IMPETUS BEHIND MUCH OF THIS PRIVATIZATION IS NOT ONLY ECONOMIC BUT POLITICAL MR CHUBAIS AND SOME OF THE ENERGETIC LOCAL PROPERTY COMMITTEES WANT TO CREATE A CONSTITUENCY WITH A VESTED INTEREST IN CONTINUED REFORM THE SOPHISTICATED INDUSTRIAL LEADERS ARE LEARNING THE PLEASURES OF SELLING THINGS FOR HARD CURRENCY EBRD OFFICIALS REPORT THAT FORWARDLOOKING PLANT MANAGERS ARE THE LEADING LOBBYISTS FOR PRIVATIZATION OF THEIR CONCERNS THE FIRING OF FORMER PRIME MINISTER YEGOR GAIDAR RAISED SOME FEARS THAT THE ENTIRE REFORM PROCESS WOULD HALT IT HASN'T MR GAIDAR'S REPLACEMENT VIKTOR CHERNOMYRDIN AFTER PROMISING TO REIMPOSE PRICE CONTROLS AND OTHERWISE SLOW REFORM SOON REALIZED THAT ATTEMPTS TO SQUASH PRICES WOULD MERELY SHIFT THE EFFECTS OF INFLATION THE CENTRAL BANK AND OTHER PARLIAMENTARY POWER CENTERS CAN INSIST ON CONTINUING TERRIBLE POLICIES BUT GOING BACKWARD IS NOT AN OPTION THE RUSSIAN POLITICIANS AND PEOPLE IN THE US WHO SEEM CLOSE TO PANICKING OVER RUSSIA'S FUTURE HAVE SOMETHING IN COMMON THEY SPEAK AS IF THE ECONOMIC TRANSITION IS SOMEHOW LED FROM ABOVE IT IS COMMONLY SAID FOR EXAMPLE THAT RUSSIA IS UNDERGOING SHOCK THERAPY IF SO IT IS SHOCK THERAPY WITHOUT THE THERAPIST AS ANDERS ASLUND POINTED OUT RECENTLY THE NATION HAD ONE MONTH OF FAST REFORM JANUARY 1992 THE REST OF THE CHANGE HAS BEEN LARGELY UNSUPERVISED THE DRAWBACKS OF THIS SEMIANARCHY ARE FAMILIAR NO ENFORCEABLE CONTRACTS AMBIGUOUS PROPERTY RIGHTS GENERAL CHAOS ALONGSIDE THIS THE RUSSIAN PARLIAMENTARY DISPUTES RESEMBLE THE IRRELEVANT FIGHTING OF SOVIET PARLIAMENTARIANS DURING THE GORBACHEV ERA WHEN THESE DEPUTIES WERE AFTER ALL ELECTED HYSTERICAL CRIES RING THROUGH THE AIR CLIQUES AND ALLIANCES SHIFT WITH POINTLESS FEROCITY MR YELTSIN CAME TO POWER TO CHANGE THE RULES OF RUSSIAN POLITICS HE HAS BEEN WEAKENED BECAUSE RECENTLY HE HAS BEEN PLAYING WITHIN THE OLD RULES RESEMBLING A GORBACHEVIAN COMMUNIST WHO CONSTANTLY CEDES GROUND IN A SERIES OF OVERLY SUBTLE POLITICAL MANEUVERS HIS RECENT THREAT TO CALL A REFERENDUM SEEMED TO SIGNAL A RETURN TO THE GOOD OLD YELTSIN WHO CHALLENGED STRUCTURES NOT JUST HIS ENEMIES NOW HE SEEMS TO BE BACKING AWAY AFTER SEVERAL REGIONS THREATENED TO BOYCOTT THE AFFAIR BUT THE CURRENT BREZHNEVITE CONSTITUTION COMBINED WITH GORBACHEVERA PARLIAMENTARIANS PREVENT EFFECTIVE POLITICAL LEADERSHIP MR YELTSIN'S TASK IS TO CHANGE THE STRUCTURE WITHOUT BEING AUTOCRATIC REFERENDUMS SEEM LIKE THE ONLY SHORTTERM METHOD THE WEST'S IMFBASED AID PROGRAM IS NOW WIDELY REGARDED AS A FAILURE IN FACT AID THAT ARRIVES IN THE MORNING IS OFTEN EMBEZZLED OUT AS CAPITAL IN THE AFTERNOON THOSE MARSHALL PLAN DREAMS WERE NEVER REALISTIC MR CLINTON NONETHELESS PROMISES BOLD NEW APPROACHES RATHER THAN GRANDIOSE GOVERNMENTTOGOVERNMENT SCHEMES IT WOULD MAKE MORE SENSE TO HELP MR YELTSIN'S REFORMERS DRAW GREATER NUMBERS OF RUSSIANS INTO THE DOLLAR ECONOMY AND THE OTHER GROWING SECTORS OF ECONOMIC ACTIVITY THEY WILL BECOME NOT ONLY CONSTITUENTS FOR MR YELTSIN BUT CONSTITUENTS FOR THE LONGTERM IDEA OF BUILDING AND MAINTAINING A CIVIL SOCIETY IN RUSSIA 9303100068 930310 SENATE PANEL MAY MOVE TO SPEED UP RENO CONFIRMATION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE JUDICIARY COMMITTEE'S BIPARTISAN LEADERSHIP IS CONSIDERING WAIVING THE PANEL'S RULES TO SPEED UP THE CONFIRMATION OF ATTORNEY GENERALDESIGNATE JANET RENO DURING A BREAK IN THE FIRST DAY OF MS RENO'S CONFIRMATION HEARING COMMITTEE CHAIRMAN JOSEPH BIDEN SAID A VOTE COULD COME AS EARLY AS TOMORROW IF THE RULE REQUIRING A SEVENDAY WAIT AFTER THE COMPLETION OF A HEARING IS SUSPENDED THE RANKING REPUBLICAN ORRIN HATCH OF UTAH AGREED IT'S TIME TO GET AN ATTORNEY GENERAL HE SAID THE EFFORT TO SUSPEND THE WAITING PERIOD REFLECTS THE LACK OF CONTROVERSY IN THE PANEL'S QUESTIONING OF MS RENO CURRENTLY THE PROSECUTOR FOR DADE COUNTY FLA WHICH INCLUDES MIAMI WHAT YOU'RE HEARING IS A COLLECTIVE SIGH OF RELIEF MR BIDEN A DELAWARE DEMOCRAT TOLD REPORTERS WHILE THE OTHER DEPARTMENT SECRETARIES WERE EASILY CONFIRMED WHEN THE CLINTON ADMINISTRATION TOOK OFFICE SEVEN WEEKS AGO CONTROVERSIES SURROUNDING THE ATTORNEY GENERAL CANDIDATES HAVE LEFT THE JUSTICE DEPARTMENT IN THE HANDS OF A BUSH ADMINISTRATION HOLDOVER PRESIDENT CLINTON'S FIRST ATTORNEY GENERAL NOMINEE ZOE BAIRD AND ANOTHER LIKELY NOMINEE KIMBA WOOD WERE DROPPED FOR REASONS RELATED TO THE HIRING OF ILLEGAL IMMIGRANTS 9303100066 930310 TECHNOLOGY RIVALS ACCUSE AT&T OF USING BULLYING TACTICS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO'S BIGGEST LONGDISTANCE PHONE RIVALS ACCUSED AT&T OF BULLYING BUSINESS CUSTOMERS INTO STICKING WITH ITS SERVICES INCLUDING TOLLFREE 800 LINES AT&T RECENTLY FILED SUIT COMPLAINING THAT ITS RIVALS MCI COMMUNICATIONS CORP SPRINT CORP AND WILTEL INC WEREN'T PUBLICLY DISCLOSING THEIR PRICING INFORMATION IN FILINGS WITH THE FEDERAL COMMUNICATIONS COMMISSION AS REQUIRED BY FEDERAL LAW WILTEL TULSA OKLA THE NATION'S FIFTH LARGEST CARRIER RESPONDED WITH A LAWSUIT FRIDAY IN US DISTRICT COURT IN TULSA IT CHARGED AT&T WITH RUNNING A MARKETING CAMPAIGN DESIGNED TO DISRUPT WILTEL'S CONTRACTUAL RELATIONSHIPS WITH ITS CUSTOMERS YESTERDAY WILTEL SAID AT&T WAS SEEKING TO DRIVE CUSTOMERS AWAY WITH FALSE AND MALICIOUS STATEMENTS CONCERNING THE LEGALITY OF THEIR CONTRACTS FOR BUSINESS SERVICES SUPPLIED BY WILTEL IN A COMPLAINT WITH THE FCC MCI THE SECONDLARGEST CARRIER COMPLAINED THAT AT&T IS ENGAGING IN UNLAWFUL MARKETPLACE PRACTICES INCLUDING A LETTERWRITING CAMPAIGN BY AT&T OFFICERS TO DISPARAGE THEIR COMPETITORS AND INTIMIDATE CUSTOMERS IF WILTEL WAS PUBLICLY FILING THEIR RATES THEN I DON'T KNOW WHAT THEY ARE SO UPSET ABOUT SAID JOSEPH P NACCHIO AT&T BUSINESS SERVICES PRESIDENT OF MCI'S COMPLAINT AN AT&T SPOKESMAN SAID MCI IS CONTINUING TO MANIPULATE THE MARKETPLACE THEY SEEM TO WANT TO KEEP US FROM COMPETING FOR OUR OWN CUSTOMERS THE BACKDROP FOR THIS FIGHT IS AT&T'S ATTEMPTS TO HOLD MARKET SHARE IN THE CORPORATE MARKET PARTICULARLY FOR TOLLFREE 800 LINES USED BY BUSINESSES THE FCC HAS SOUGHT TO IMPROVE COMPETITION IN THE TOLLFREE 800 MARKET BY RULING THAT BUSINESS CUSTOMERS CAN KEEP THEIR EXISTING TOLLFREE NUMBERS EVEN IF THEY SWITCH CARRIERS AN EFFORT THE INDUSTRY HAS DUBBED 800 PORTABILITY THAT RULING TAKES EFFECT ON MAY 1 THE TOLLFREE MARKET ACCOUNTS FOR ALMOST 7 BILLION OF THE US LONGDISTANCE INDUSTRY'S NEARLY 60 BILLION IN ANNUAL REVENUES WHILE RIVALS HAVE WHITTLED AT&T'S SHARE OF THE OVERALL MARKET DOWN TO ABOUT 65 AT&T HAS BEEN ABLE TO HOLD ON TO MORE THAN 90 OF THE 800 MARKET BY KEEPING ITS CUSTOMERS FROM MOVING TO RIVAL CARRIERS WITH THEIR TOLLFREE NUMBERS MANY CUSTOMERS THAT SPEND A LOT OF MONEY ADVERTISING VANITY NUMBERS SUCH AS 1800THECARD SHIED AWAY FROM THE ADDITIONAL EXPENSE OF PROMOTING A NEW NUMBER FROM ANOTHER CARRIER YESTERDAY MCI SPRINT AND WILTEL SAID AT&T IS AUGMENTING ITS AGGRESSIVE AD CAMPAIGN WITH A MASSIVE DIRECT MAIL EFFORT TO ITS BUSINESS CUSTOMERS THESE ACTIONS REVEAL THE DARK SIDE' OF AT&T'S POWER IN THE MARKETPLACE SAID JIM LEWIS MCI'S VICE PRESIDENT OF REGULATORY AFFAIRS THE VARIOUS THREATS INCLUDING ESCALATED FEES CUSTOMER PENALTIES AND INTIMIDATION ARE CLEARLY CONTRARY TO THE FCC RULES DESIGNED TO ALLOW CUSTOMERS FREEDOM TO MOVE THEIR SERVICES WITHOUT ECONOMIC PENALTY AND REPRISALS IT WAS OUTRAGEOUS CONDUCT FOR AT&T TO SEND THOSE LETTERS WE AGREE WITH MCI SAID A SPRINT SPOKESMAN ADDED ROY WILKENS WILTEL'S PRESIDENT AT&T IS USING ITS GIGANTIC SIZE IN AN ATTEMPT TO ELIMINATE AGILE COMPETITORS IN ONE LETTER SENT TO BUSINESS CUSTOMERS LAST MONTH AT&T'S MR NACCHIO CAUTIONED SECRET DEALS DENY CUSTOMERS THE ADVANTAGES OF COMPETITION ILLEGAL ACTIVITIES DAMAGE THE ENTIRE COMMUNICATIONS INDUSTRY WE WANT CUSTOMERS TO MAKE SURE THEIR SERVICE ARRANGEMENTS ARE LEGAL SAID AT&T'S SPOKESMAN 9303100065 930310 CREDIT RATINGS ELECTROLUX AB STOCKHOLM MOODY'S INVESTORS SERVICE INC PLACED THE LONGTERM DEBT RATING OF SWEDEN'S ELECTROLUX UNDER REVIEW FOR A POSSIBLE DOWNGRADE CITING WEAKERTHANEXPECTED EARNINGS AND THIN DEBT COVERAGE ABOUT 13 BILLION IN DEBT IS AFFECTED BY THE REVIEW THE RATING AGENCY SAID ELECTROLUX WHICH CURRENTLY HAS A SINGLEA3 SENIOR DEBT RATING IS BEING FURTHER SQUEEZED BY A WEAK EUROPEAN MARKET FOR SOME OF ITS KEY PRODUCTS ESPECIALLY LARGE HOUSEHOLD APPLIANCES ELECTROLUX ALSO MAKES FLOOR CARE PRODUCTS FOOD SERVICE EQUIPMENT INDUSTRIAL LAUNDRY EQUIPMENT AND FORESTRY AND GARDEN EQUIPMENT WINGS HOLDINGS INC ST PAUL MINN STANDARD & POOR'S CORP LOWERED ITS RATING ON NWA INC'S 200 MILLION OF SENIOR UNSECURED NOTES TO TRIPLEC FROM TRIPLECPLUS THE RATING CONCERN CITED THE ADVERSE INDUSTRY ENVIRONMENT FACING THE CLOSELY HELD PARENT OF NORTHWEST AIRLINES IT ALSO POINTED OUT THAT THE AIRLINE HOLDING COMPANY A UNIT OF WINGS HOLDINGS INC FACES RISKS ASSOCIATED WITH ONGOING LABOR NEGOTIATIONS IF THE COMPANY CAN'T REACH TERMS WITH ITS UNIONS OVER A PLAN TO SWAP EQUITY FOR CONCESSIONS S&P SAID NWA WOULD FIND IT DIFFICULT TO PROCEED WITH BADLY NEEDED RECAPITALIZATION EVEN IF THE CONTINUING TALKS WITH THE LABOR COALITION PRODUCE AN AGREEMENT S&P SAID EFFORTS TO ATTRACT NEW OUTSIDE EQUITY COULD BE COMPLICATED IF THE UNIONS GET THE MAJORITY OWNERSHIP STAKE THEY'RE SEEKING THE DEBT REMAINS ON S&P'S CREDITWATCH WITH NEGATIVE IMPLICATIONS WHERE IT WAS PLACED IN NOVEMBER COMPANY OFFICIALS COULD NOT BE REACHED FOR COMMENT 9303100064 930310 REVIEW & OUTLOOK EDITORIAL HENRY AND PHIL FOREVER THIS IS A STORY ABOUT HENRY HIS TRUSTY SIDEKICK PHIL AND WHY AMERICANS HATE CONGRESS THE NAMES HAVE NOT BEEN CHANGED TO PROTECT THE TAXPAYER THE HENRY IS WAXMAN THE CONGRESSMAN FROM HOLLYWOOD AND CONSUMMATE CAREER POLITICIAN FOR SIX YEARS HE PRACTICED IN THE CALIFORNIA LEGISLATURE AND SINCE 1974 THE WATERGATE CLASS HE'S CAMPED IN WASHINGTON HE MAY NEVER LEAVE HIS DISTRICT IS SAFELY LIBERAL AND FROM HIS PERCH ON THE ENERGY AND COMMERCE COMMITTEE HE RAISES HUGE SUMS OF PAC MONEY FROM FRIGHTENED BUSINESSES MR WAXMAN'S TONTO IS 36YEAROLD PHIL SCHILIRO A CONGRESSIONAL STAFFER SINCE GRADUATING FROM LAW SCHOOL MR SCHILIRO WANTS TO JOIN HIS BOSS IN THE BIG TIME HE RAN AND BARELY LOST A RACE FOR CONGRESS LAST YEAR ON HIS NATIVE LONG ISLAND DESPITE SPENDING SOME 500000 MUCH OF IT RAISED FROM BUSINESSES THAT KNOW HIM FROM MR WAXMAN'S STAFF ONE OF MR SCHILIRO'S MAIN CAMPAIGN THEMES WAS BREAST CANCER WHICH HAS A RELATIVELY HIGH INCIDENCE ON LONG ISLAND THE WORD IS HE PLANS TO RUN AGAIN FOR CONGRESS OR FOR SOME LOCAL NEW YORK OFFICE IN 1994 SO PERHAPS IT WAS INEVITABLE THAT MR WAXMAN WOULD TURN UP LAST WEEK WITH AN AMENDMENT TO THE NATIONAL INSTITUTES OF HEALTH BILL HE PROPOSES THAT THE NATIONAL CANCER INSTITUTE STUDY THE INCIDENCE OF BREAST AND PROSTATE CANCER ON LONG ISLAND NO DOLLAR AMOUNT IS SPECIFIED WE'RE OFTEN CRITICAL OF CONGRESS BUT IT SEEMS EVEN WE UNDERESTIMATE THE CAREERISM OF A HENRY WAXMAN WITH HIS OWN SEAT SAFE FROM COMPETITION MR WAXMAN NOW BIDS TO USE HIS SPENDING POWER TO PROMOTE THE CAREERISM EVEN OF HIS STAFF IN A DISTRICT 3000 MILES FROM HIS OWN THIS BRINGS THE CONCEPT OF PORK BARREL TO A WHOLE NEW LEVEL EVEN LOSING CANDIDATES CAN USE CONGRESS TO SPEND ON FAVORS THEY CAN TAKE CREDIT FOR MR SCHILIRO INSISTS THAT POLITICS HAS NOTHING AT ALL TO DO WITH THIS THAT HE REALLY CARES ABOUT BREAST CANCER BUT DOES ANYONE BELIEVE THAT THIS CANCER STUDY WOULD TAKE PLACE ON LONG ISLAND FOR ANY OTHER REASON THAN THAT MR SCHILIRO HAPPENS TO WORK FOR THE POWERFUL HENRY WAXMAN CONGRESSMAN TOM BLILEY R VA MORE OR LESS ASKED THAT SAME QUESTION AT A MARKUP ON THE WAXMAN AMENDMENT HE POINTED OUT THAT THE TWO LONG ISLAND COUNTIES NASSAU AND SUFFOLK RANKED 178TH AND 234TH RESPECTIVELY IN BREAST CANCER INCIDENCE AMONG ALL COUNTIES OVER A FIVEYEAR PERIOD ACCORDING TO HIS DATA FROM THE NATIONAL CANCER INSTITUTE THE RANKINGS FOR PROSTATE CANCER ARE 1248 NASSAU AND 843 SUFFOLK MR SCHILIRO SAYS HIS FIGURES ARE WORSE BUT IN ANY EVENT WHY LONG ISLAND FIRST WHY NOT EVERY COUNTY IN THE US FOR EVERY KIND OF CANCER MOREOVER THE CANCER INSTITUTE IS ALREADY DOING A STUDY OF MOST OF THE EASTERN US FOR BREAST CANCER AND EVEN MR SCHILIRO ADMITS THAT NEW YORK STATE HAS ALREADY DONE TWO STUDIES OF BREAST CANCER ON LONG ISLAND CONCLUDING THAT DRINKING WATER WASN'T A CAUSE OF THIS CANCER YET THE WAXMAN AMENDMENT SPECIFICALLY ASKS THE NATIONAL CANCER INSTITUTE TO INVESTIGATE DRINKING WATER AS A POSSIBLE ENVIRONMENTAL CAUSE THE POINT HERE IS THAT EVEN NOBLESOUNDING CAUSES WILL BE TRANSMUTED BY CAREERISM IN THE MODERN CONGRESS IF WE HAD ANY DOUBTS THEY VANISHED WHEN AFTER LEARNING WE WERE ONTO THE STORY MR SCHILIRO SENT US A LETTER FROM SEVERAL OTHER NEW YORK POLITICIANS SUPPORTING THE WAXMANSCHILIRO AMENDMENT THEY INCLUDED HIS REPUBLICAN OPPONENT CONGRESSMAN DAVID LEVY WHO NO DOUBT HAS HIS OWN CAREER IN MIND ON THE MATTER OF TERM LIMITS WE REST OUR CASE 9303100063 930310 BUSINESS BRIEF THERMO ELECTRON CORP FIRM'S 4THQUARTER RESULTS ARE BETTER THAN EXPECTED THERMO ELECTRON CORP CITING THE DEVELOPMENT OF NEW PRODUCTS AND IMPROVED PROFIT AT MANY OF ITS UNITS AND RECENT ACQUISITIONS REPORTED BETTER THAN EXPECTED FOURTHQUARTER RESULTS THE WALTHAM MASS COMPANY SAID NET INCOME FOR THE QUARTER ENDED JAN 2 INCREASED 30 TO 185 MILLION OR 69 CENTS A SHARE FROM 142 MILLION OR 55 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 32 TO 2916 MILLION FROM 2202 MILLION IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THERMO ELECTRON SHARES WERE CLOSED AT 57 A SHARE UP 3 THERMO ELECTRON AND ITS SUBSIDIARIES MAKE INSTRUMENTS FURNACES COGENERATION SYSTEMS AND BIOMEDICAL PRODUCTS AND PROVIDE TECHNICAL ASSISTANCE AMONG OTHER THINGS THE COMPANY CREDITED IMPROVEMENTS IN OPERATIONS OF ITS EIGHT PUBLICLY HELD SUBSIDIARIES INCLUDING THERMEDICS INC A MAKER OF BOMB AND DRUG DETECTION SYSTEMS FOR ITS REVENUE AND EARNINGS GAINS 9303100062 930310 WORLD MARKETS PROFITTAKING ERODES TOKYO GAINS FROM HIGHS YANKS LONDON PRICES DOWN FRANKFURT RALLIES A WALL STREET JOURNAL NEWS ROUNDUP IN THE HEAVIEST TRADING IN 18 MONTHS TOKYO STOCKS TUESDAY CLIMBED AGAIN BUT PROFITTAKING TOWARD THE CLOSE KNOCKED THE BENCHMARK NIKKEI INDEX SHARPLY FROM ITS INTRADAY HIGH LONDON SHARES SLIPPED AS INVESTORS PAUSED FOLLOWING RECENT SHARP GAINS TO CAPTURE PROFITS FRANKFURT EQUITIES RALLIED TO A 1993 HIGH IN TOKYO THE NIKKEI 225STOCK AVERAGE WHICH JUMPED 86877 POINTS OR 52 ON MONDAY GAINED 16183 TO 1784830 ON WEDNESDAY THE NIKKEI ROSE 1665 POINTS TO CLOSE THE MORNING SESSION AT 1786495 TUESDAY'S FIRSTSECTION VOLUME SWELLED TO AN ESTIMATED 850 MILLION SHARES THE MOST SINCE SEPT 13 1991 FROM A STRONG 5603 MILLION SHARES ON MONDAY GAINERS TROUNCED LOSERS 761291 THE NIKKEI ROSE SHARPLY FROM THE INTRADAY LOW OF 1772489 AT THE OPENING TO TOP 18000 IN THE FIRST HALFHOUR OF ACTIVITY THE INDEX SPENT MOST OF THE DAY BOBBING AROUND 18000 A CLOSING LEVEL IT HASN'T MANAGED SINCE SEPT 25 AND WAS UP AS MUCH AS 2 AT 1804716 DURING THE DAY SENTIMENT WAS BRIGHT AS STOCKS' BIG BOUNCE UP THE PREVIOUS DAY WAS MATCHED BY STRONG PERFORMANCES IN NEW YORK AND LONDON FOREIGN INVESTORS SPRANG FROM THE TOKYO SIDELINES TO JOIN THE BUYING FRENZY WHICH STILL WASN'T SUPPORTED BY ANY ECONOMIC FUNDAMENTALS AS JAPANESE DATA CONTINUED TO SHOW FURTHER WEAKENING IN THE ECONOMY SELLING CAME THROUGHOUT THE DAY AS THE NIKKEI HOVERED AROUND 18000 TOKKIN SPECIFIED MONEY TRUSTS AND INVESTORS WHO HAD BOUGHT SECURITIES ON MARGIN OR CREDIT LED THE SELLING NONETHELESS MONDAY'S RALLY AND TUESDAY'S GAINS EMBOLDENED INVESTORS WHO ARE BETTING THE MARKET WILL CONTINUE TO RECOVER IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX WHICH CLIMBED TO A RECORD THE PREVIOUS DAY FELL 74 POINTS TO 29499 THE FT 30STOCK INDEX EDGED UP 06 POINT TO 22940 VOLUME ROSE TO 7737 MILLION SHARES FROM 6527 MILLION SHARES A DAY EARLIER INVESTORS SOLD ISSUES THAT HAD PERFORMED WELL IN LONDON'S RECENT RUNUPS IN RECORD TERRITORY PRICES ROSE IN THE MORNING IN REACTION TO WALL STREET'S MONDAY RALLY TO A NEW HIGH BUT WITHOUT FOLLOWTHROUGH BUYING SOME PROFITTAKING SET IN BRITISH PRODUCERPRICE INFLATION DATA RELEASED DURING THE SESSION WAS MUCH AS EXPECTED AND DIDN'T AFFECT STOCK DEALINGS IN AFTERNOON TRADING A RETREAT IN THE STOCKINDEX FUTURES MARKET AND A CAUTIOUS FIRST FEW HOURS ON WALL STREET KEPT LONDON PRICES DEPRESSED STILL PARTICIPANTS REMAINED OPTIMISTIC ABOUT BRITAIN'S ECONOMIC RECOVERY AND EXPECTATIONS OF LOWER EUROPEAN INTEREST RATES IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 1831 POINTS OR 11 TO 171313 NEAR THE INTRADAY PEAK OF 171524 SHARES OPENED SHARPLY HIGHER AND EXTENDED THEIR GAINS THROUGHOUT THE SESSION IN ACTIVE TRADING PROPELLED BY WALL STREET'S MONDAY RALLY HOPES FOR A FURTHER EASING IN GERMAN MONETARY POLICY STRONGERTHANEXPECTED GERMAN ECONOMIC DATA AND CORPORATE NEWS THAT WAS BETTER THAN ANTICIPATED ELSEWHERE IN EUROPE PARIS STOCK PRICES ROSE FOR THE THIRD SESSION IN A ROW BOOSTED BY PERSISTENT HOPES FOR A FRENCH INTERESTRATE CUT AND BY TECHNICAL BUYING AMSTERDAM SHARES FIRMED ACROSS THE BOARD BUOYED BY THE DOLLAR'S STRENGTH WALL STREET'S DAYEARLIER CLIMB AND EXPECTATIONS OF LOWER INTEREST RATES IN GERMANY AND THE NETHERLANDS THOUGH PRICES FINISHED DOWN FROM INTRADAY HIGHS ZURICH SHARES CLIMBED BROADLY SUPPORTED BY THE STRONG PERFORMANCES IN NEW YORK AND FRANKFURT AND STEADY SWISS MONEYMARKET RATES BRUSSELS SHARES LOGGED THEIR THIRD CONSECUTIVE RISE BOLSTERED BY THE NEW YORK AND TOKYO EXCHANGES AND THE STRONGER DOLLAR BUT MADRID'S TWODAY RALLY PETERED OUT AND EQUITIES ENDED MIXED AFTER PROFITTAKING THOUGH SENTIMENT REMAINED BULLISH BECAUSE OF RENEWED STABILITY ON FOREIGN EXCHANGE MARKETS AND OPTIMISM THAT GERMANY WILL CUT INTEREST RATES NEXT WEEK AND STOCKHOLM PRICES RETREATED FROM MONDAY'S 1993 HIGHS AS PROFITTAKERS MOVED IN AND SOME SWEDISH INTEREST RATES ROSE MILAN STOCKS PLUNGED AS POLITICAL TENSIONS INCREASED NERVOUS SELLING ACCELERATED AMID A DISPUTE ABOUT A GOVERNMENT DECREE LATER SHELVED THAT WOULD HAVE DECRIMINALIZED ILLEGAL FUNDING OF POLITICAL PARTIES IN CONNECTION WITH A WIDE KICKBACK SCANDAL STOCKS' SLIDE TRIGGERED LATE LAST WEEK BY COMING TECHNICAL DEADLINES DEEPENED AS PLAYERS WHO WERE ATTEMPTING TO SQUARE LONG POSITIONS FOUND FEW BUYERS THE HEAVIEST CASUALTIES WERE AMONG BLUE CHIPS AND SMALLER BANKS AND INSURANCE STOCKS WHICH HAD POSTED THE STRONGEST GAINS IN RECENT RALLIES STOCKS WERE UNDERMINED FURTHER BY NEWS OF THE ARRESTS OF GABRIELE CAGLIARI THE SOCIALIST CHAIRMAN OF ITALIAN STATE ENERGY HOLDING ENI AND FRANCO CIATTI MANAGING DIRECTOR OF ENI'S ENGINEERING SUBSIDIARY NUOVO PIGNONE AMONG ASIAN AND PACIFIC BOURSES SYDNEY STOCKS SURGED WITH SENTIMENT BUOYED BY BULLISH OVERSEAS EXCHANGES A JUMP IN AUSTRALIAN JOB ADVERTISMENTS IN FEBRUARY AND STRONGER JANUARY RETAIL SALES THOUGH JITTERS AHEAD OF SATURDAY'S NATIONAL ELECTION KEPT A LID ON THE GAINS IN HONG KONG EXPECTATIONS OF A STRONG EARNINGS SEASON FUELED A RALLY PUSHING THE MAIN INDEX UP TO A RECORD FINISH BUT TAIPEI SHARES PLUNGED AS PROFITTAKING CONTINUED IN FINANCE ISSUES A SECTOR THAT PLUMMETED 58 BUT EVEN AFTER RECENT DRUBBINGS STOCKS WERE STILL UP A THIRD SINCE THE BEGINNING OF THIS YEAR SEOUL PRICES EDGED UP NEWS REPORTS THAT THE SOUTH KOREAN GOVERNMENT WAS DRAWING UP MARKETBOOSTING MEASURES HELPED PULL NERVOUS SMALL INVESTORS OFF THE SIDELINES AND LIFTED STOCKS SMARTLY BUT THE SURGE RAN OUT OF STEAM BECAUSE OF LINGERING CONCERN ABOUT THE NEW GOVERNMENT'S REFORM PLANS AMONG CORPORATE DEVELOPMENTS IN TOKYO KOMATSU JUMPED 17 YEN OR 26 TO 677 YEN 579 THE CONSTRUCTION MACHINERY MAKER EXPECTS UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR STARTING APRIL 1 TO RISE 46 TO 23 BILLION YEN 1968 MILLION FROM THE ESTIMATED 22 BILLION YEN FOR THE CURRENT FISCAL YEAR THAT WOULD MARK KOMATSU'S FIRST INCREASE IN PRETAX PROFIT IN THREE YEARS BUT THE COMPANY SAID A STRONG YEN COULD UPSET THE FORECAST IN FRANKFURT'S CHEMICAL SECTOR BASF RALLIED 12 MARKS OR 53 TO 24050 MARKS 14466 AND HOECHST GAINED 27 OR 11 TO 25630 BASF CUT ITS 1992 DIVIDEND 17 TO 10 MARKS A SHARE THE TWOMARK REDUCTION WASN'T AS DEEP AS SOME ANALYSTS HAD EXPECTED HOECHST'S 25 REDUCTION IN ITS PAYOUT TO 9 MARKS A SHARE WAS LARGER THAN EXPECTED BUT THE ANNOUNCEMENT CAME AFTER THE MARKET CLOSED 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 9303100061 930310 INTERNATIONAL BRIEF SOUTHERN CROSS AIRLINES HOLDINGS DEPUTY CHAIRMAN CHARGED WITH CORPORATE LAW BREACH THE DEPUTY CHAIRMAN OF SOUTHERN CROSS AIRLINES HOLDINGS LTD OF MELBOURNE AUSTRALIA WAS ARRESTED AND CHARGED WITH BREACHES OF A SECTION OF THE NATION'S CORPORATIONS LAW THE OFFICIAL DOUGLAS REID WAS RELEASED ON BAIL THE ARREST FOLLOWED A JOINT OPERATION INVOLVING THE AUSTRALIAN SECURITIES COMMISSION AND THE FEDERAL POLICE IN A STATEMENT THE COMMISSION ALLEGED THAT MR REID KNOWINGLY MADE AVAILABLE FALSE INFORMATION TO THE DIRECTORS OF SOUTHERN CROSS AIRLINES ON OR ABOUT MARCH 2 SOUTHERN CROSS AIRLINES OPERATES THE SMALL DOMESTIC CARRIER COMPASS AIRLINES THE SUPREME COURT OF QUEENSLAND STATE APPOINTED A RECEIVER AND MANAGER TO THE COMPANY MARCH 4 AFTER COMPASS REPORTED A BIGGERTHANEXPECTED FISCAL FIRSTHALF LOSS OF 11 MILLION AUSTRALIAN DOLLARS US78 MILLION THE AIRLINE WHICH IS IN DANGER OF COLLAPSING HAS SO FAR BEEN ABLE TO ARRANGE A MUCHNEEDED FINANCING PACKAGE MR REID COULDN'T BE REACHED FOR COMMENT 9303100060 930310 MARKETING BRIEF SOUTHAM INC PACIFIC PRESS NEWSPAPER UNIT IS PLANNING TO CUT 112 JOBS SOUTHAM INC SAID ITS PACIFIC PRESS NEWSPAPER PUBLISHING UNIT PLANS TO CUT 112 JOBS AT THE TWO VANCOUVER BRITISH COLUMBIA NEWSPAPERS IT PUBLISHES ABOUT 80 EMPLOYEES IN THE CIRCULATION DEPARTMENT OF THE TORONTO PRINTING AND PUBLISHING CONCERN WILL LOSE THEIR JOBS WITH THE REMAINING CUTS COMING IN THE EDITORIAL DEPARTMENT AND FROM AMONG THE UNIT'S MANAGERS AN EARLIER VOLUNTARY STAFF REDUCTION PROGRAM DID NOT ACHIEVE THE SAVINGS WE NEEDED THE COMPANY SAID FOLLOWING THE CUTS PACIFIC PRESS WHICH PUBLISHES THE VANCOUVER SUN AND THE VANCOUVER PROVINCE WILL HAVE ABOUT 1480 EMPLOYEES IT SAID IT EXPECTS TO SAVE ABOUT 6 MILLION CANADIAN DOLLARS US48 MILLION ANNUALLY AS A RESULT OF THE STAFF CUTS THE NEWSPAPER HAD A LOSS OF ABOUT C4 MILLION IN 1992 COSTS OF THE SEVERANCE PACKAGES WILL BE COVERED AS PART OF THE C129 MILLION RESTRUCTURING PROVISION CHARGED BY SOUTHAM AGAINST ITS 1992 RESULTS 9303100059 930310 FOREIGN EXCHANGE DOLLAR ADVANCES BUT REMAINS CONFINED AS THE YEN SLIDES ON SPECULATIVE SELLING BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE YEN SLID TUESDAY AS SPECULATIVE SELLING TRIGGERED A WAVE OF PROFITTAKING DEALERS SAID HELPED BY THE YEN'S WEAKNESS THE DOLLAR GAINED BUT WITHOUT CLEAR SIGNS OF DIRECTION DEALERS SAID THE DOLLAR REMAINS CONFINED IN ITS RECENT TRADING RANGES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16670 MARKS UP FROM 16635 MARKS LATE MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11775 YEN UP FROM 11675 YEN STERLING WAS TRADING AT 14395 DOWN FROM 14425 EARLY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11773 YEN AND AT 16652 MARKS IT'S JUST PROFIT TAKING SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK OF THE YEN'S SLIDE THERE'S CERTAINLY NO SHIFT IN THE FUNDAMENTALS THE YEN HAD GAINED SHARPLY ACROSS THE BOARD IN RECENT WEEKS EXPECTATIONS OF OFFICIAL ACTION TO STRENGTHEN THE YEN AS A MEANS OF REDUCING JAPAN'S TRADE SURPLUS ACCELERATED THE YEN'S USUAL UPTREND FROM JAPANESE COMPANIES CONVERTING ASSETS BACK INTO YEN AHEAD OF THE MARCH 31 YEAR END DEALERS SAID INVESTORS HAVE SOUGHT TO CAPITALIZE ON THE YEN'S STRENGTH BY SELLING THE DOLLAR AND MARK AGAINST THE JAPANESE CURRENCY HOPING TO BUY THEM BACK AT LOWER LEVELS TUESDAY THE YEN SLID FAR ENOUGH TO PROMPT MANY OF THOSE INVESTORS TO COVER THEIR POSITIONS BY BUYING DOLLARS AND MARKS PUSHING THE YEN YET LOWER DEALERS SAID THIS WAS ALWAYS THREATENING TO HAPPEN SAID KEITH CHEVERALLS SENIOR MANAGER IN FOREIGN EXCHANGE AT NIPPON CREDIT BANK IN NEW YORK WE'VE BEEN LOOKING FOR A SIGNIFICANT CORRECTION THE YEN ALSO SLUMPED AGAINST THE MARK TUESDAY DEALERS SAID AS INVESTORS COVERED BETS THE MARK WOULD FALL AGAINST ITS JAPANESE COUNTERPART TECHNICAL INDICATORS POINTED TO A REBOUND FOR THE MARK TUESDAY AFTER SELLERS FAILED TO PUSH THE GERMAN CURRENCY BELOW 70 YEN DEALERS SAID THAT LEVEL SAID CHEMICAL BANK'S MR ARNOLD HAS PROVEN TO BE AN IMPORTANT PSYCHOLOGICAL LEVEL AS THE MARK ADVANCED TUESDAY DEALERS SAID BUYING SPIRALED AS SUCCESSIVE TECHNICAL RESISTANCE LEVELS GAVE WAY BUT BUYERS' ENTHUSIASM APPEARED TO FLAG AS THE MARK HEADED TOWARD 7080 YEN DEALERS SAID AND THE CURRENCY CLOSED OFF ITS HIGHS LATE TUESDAY IN NEW YORK THE MARK WAS QUOTED AT 7066 YEN UP FROM 7023 YEN LATE MONDAY THIS IS JUST ANOTHER IN A SERIES OF SQUEEZES SAID ALFONSO ALEJO A VICE PRESIDENT AT SAKURA BANK LTD IN NEW YORK WE'RE ESSENTIALLY STILL RANGE BOUND HE ADDED THE DEMAND FOR MARKS AGAINST YEN TUESDAY HELPED KEEP THE DOLLAR IN A NARROW RANGE AGAINST THE MARK AS WELL DEALERS SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON SAID THE DOLLAR'S RESILIENCE AFTER FRIDAY'S THREEPFENNIG RALLY STILL ENCOURAGES PLAYERS TO HOLD THE US CURRENCY BUT HASN'T SPAWNED MUCH NEW BUYING THERE'S NOTHING NEW TO SUPPORT THE DOLLAR BUT TECHNICALLY IT'S NOT TESTING THE DOWNSIDE SHE SAID THE MARKET SEEMS TO LIKE BEING LONG DOLLARS A DISAPPOINTING REPORT ON THE US ECONOMY LATE TUESDAY DID LITTLE TO DENT THE DOLLAR'S STRENGTH DEALERS SAID 9303100058 930310 BUSINESS BRIEFS TEXAS INSTRUMENTS INC SAID ITS DEFENSE GROUP RECEIVED A 70 MILLION CONTRACT TO PRODUCE SURVEILLANCE RADAR FOR A NEW FAMILY OF CANADIAN NAVY HELICOPTERS STERLING BANCORP AGREED IN PRINCIPLE TO ACQUIRE CONTINENTAL BANK OF GARDEN CITY NY IN A STOCK SWAP VALUED AT 8 MILLION TO 9 MILLION SWIFT ENERGY CO AGREED TO PURCHASE PRODUCING OIL AND GAS PROPERTIES FOR 29 MILLION FROM A UNIT OF ELECTRA FINA SPA OF BRUSSELS MOHAWK INDUSTRIES INC A CARPET MAKER SIGNED A PACT TO BUY AMERICAN RUG CRAFTSMEN INC AND A COMPANY IT OWNS BURTON CARPET & RUG INC FOR 20 MILLION GENERAL ELECTRIC CO'S AIRCRAFT ENGINE UNIT SAID CHINA SOUTHERN AIRLINES ORDERED GE90 ENGINES VALUED AT 200 MILLION TO POWER SIX BOEING 777 AIRCRAFT CONVEX COMPUTER CORP SAID MEXICO'S STATE OIL COMPANY HAS ORDERED THREE OF THE COMPANY'S C3 SERIES SUPERCOMPUTERS TERMS WEREN'T DISCLOSED 9303100057 930310 BUSINESS BRIEF PAINEWEBBER GROUP INC FIVE MILLION PREFERRED SHARES WILL BE REDEEMED BY FIRM PAINEWEBBER GROUP INC SAID IT WILL REDEEM FIVE MILLION PREFERRED SHARES HELD BY JAPAN'S YASUDA MUTUAL LIFE INSURANCE CO BUT YASUDA HAS THE OPTION OF CONVERTING THE PREFERRED TO COMMON STOCK THE REDEMPTION OF THE CUMULATIVE PARTICIPATING CONVERTIBLE VOTING PREFERRED SHARES SERIES A IS IN ACCORDANCE WITH AN AGREEMENT THE TWO COMPANIES REACHED IN NOVEMBER FOR YASUDA'S INVESTMENT PAINEWEBBER A SECURITIES BROKERAGE COMPANY SAID IT WOULD REDEEM THE SHARES FOR A TOTAL OF 968 MILLION WITH A REDEMPTION DATE OF APRIL 1 YASUDA MAY HAVE AN INCENTIVE TO CONVERT TO COMMON STOCK RATHER THAN REDEEM BASED ON PAINEWEBBER'S CLOSING PRICE YESTERDAY OF 2625 YASUDA'S PREFERRED SHARES IF CONVERTED WOULD BE VALUED AT 1313 MILLION PAINEWEBBER SAID OTHER CONVERSIONS OF PREFERRED STOCK TO COMMON IN THE PAST YEAR HAVE LOWERED ITS ANNUAL PREFERRED DIVIDEND OBLIGATIONS BY 173 MILLION PAINEWEBBER OFFICIALS COULDN'T BE REACHED TO ELABORATE THE COMPANY HAS ABOUT 43 MILLION COMMON SHARES OUTSTANDING 9303100056 930310 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL ESTATES AND TRUSTS FACE HORRENDOUS INCOMETAX INCREASES A CPA SAYS THIS INCOME ALREADY IS TAXED FAR MORE HEAVILY THAN THAT OF INDIVIDUALS PRESIDENT CLINTON WOULD EXPAND THE DIFFERENTIAL THE 31 TOP RATE APPLIES NOW TO TAXABLE INCOME OVER 53500 FOR SINGLE TAXPAYERS AND OVER 11250 FOR ESTATES AND TRUSTS THE PROPOSALS WOULD ADD RATES OF 36 FOR SINGLES WITH INCOME OVER 115000 AND 396 FOR INCOME OVER 250000 BUT ESTATE AND TRUST INCOME WOULD BE TAXED AT 31 OVER 3500 36 OVER 5500 AND 396 OVER 7500 THE TAX ON 15000 OF ESTATE OR TRUST INCOME WOULD JUMP 37 TO 5095 FROM 3712 NOW NOTES BERNARD BARNETT OF BDO SEIDMAN CPAS IF THE INCREASE IS ENACTED HE WARNS EXECUTORS AND TRUSTEES MUST BE READY TO PAY OUT INCOME TO BENEFICIARIES WHO MIGHT BE TAXED LESS ON IT CONGRESS RAISED INCOME TAXES ON TRUSTS AND ESTATES IN 1990 SAYING THAT WOULD DETER THE USE OF MULTIPLE LOWTAX TRUSTS FOR ONE BENEFICIARY BUT CONGRESS HAS SUPPLIED OTHER WEAPONS AGAINST TRUST ABUSES WHICH DON'T INVOLVE ESTATES BARNETT SAYS WHY SHOULD ESTATES BE STIGMATIZED BY A TRUST PROBLEM BARNETT ASKS KEOGHPLAN DEDUCTIONS FOR THE SELFEMPLOYED REQUIRE TRICKY CALCULATIONS THE ABSOLUTE MAXIMUM DEDUCTIBLE CONTRIBUTION TO A KEOGH RETIREMENT PLAN IS 30000 BUT FIGURING WHETHER YOU ARE ENTITLED TO THE MAXIMUM OR JUST WHAT LOWER LIMIT HAS BECOME MORE COMPLICATED SINCE 1990 RULES NEW THAT YEAR PRESCRIBE ADJUSTMENTS FOR SOCIAL SECURITY TAX PAYMENTS AND NOW THE SELFEMPLOYED MUST ALLOW FOR DIFFERING WAGE BASES FOR THE SOCIAL SECURITY AND MEDICARE TAXES ETHAN KRA OF CONSULTANTS WILLIAM M MERCER INC OFFERS THIS GUIDANCE FOR PROFITSHARING KEOGHS TO FIND THE MAXIMUM CONTRIBUTION FOR 1992 FROM NET SELFEMPLOYMENT INCOME UP TO 60097 MULTIPLY INCOME BY 12121 IF INCOME RANGES TO 140985 MULTIPLY BY 12868 AND SUBTRACT 44882 FOR HIGHER INCOME MULTIPLY BY 13043 AND SUBTRACT 69506 THE INCOME NUMBERS REFLECT ANNUAL ADJUSTMENTS FOR INFLATION RESEARCH CREDITS FOR SMALL BUSINESSES MAY BE COMPLICATED OR SIMPLIFIED COMPANIES HAIL CLINTON'S PLAN TO REVIVE THE EXPIRED RESEARCH CREDIT PERMANENTLY AND RETROACTIVELY TO JULY 1 HE ALSO PROPOSES NEW RULES FOR NEW COMPANIES THE RULES WOULD ERASE A DISINCENTIVE FOR RESEARCH BY STARTUP COMPANIES BUT WOULD FURTHER COMPLICATE A COMPANY'S CALCULATIONS DURING ITS FIRST 10 YEARS THE CREDIT BASED ON ANNUAL GROWTH IN RESEARCH SPENDING IS SO COMPLEX ALREADY THAT MANY SMALL COMPANIES LOSE OUT NOW A BIPARTISAN GROUP PLANS A BILL TO REVISE THE CREDIT AND SIMPLIFY IT FOR SMALL BUSINESS THE SPONSORS SENS BAUCUS D MONT AND DANFORTH R MO AND REPS PICKLE D TEXAS AND ARCHER R TEXAS ONE EXPECTED PROPOSAL WOULD RELIEVE COMPANIES WITH UP TO 100 MILLION IN SALES FROM FIGURING CREDITS ON THE BASIS OF GROWTH IN SPENDING INSTEAD THE CREDIT WOULD BE SIMPLY A FLAT 10 OF ACTUAL RESEARCH SPENDING THIS IS THE RIGHT DIRECTION SAYS ED HATCHER OF THE AMERICAN ELECTRONICS ASSOCIATION WE HOPE THE ADMINISTRATION EMBRACES THIS APPROACH US COMPANIES THAT LEND DOLLARS TO BRITISH UNITS SHOULD PLAN NOW FOR A PROPOSED CHANGE IN UK TREATMENT OF FOREIGNEXCHANGE GAINS AND LOSSES SAYS COOPERS & LYBRAND CPAS BRITAIN IS EXPECTED IN 1994 TO START RECOGNIZING ACCRUED EXCHANGE GAINS AND LOSSES ON CERTAIN FOREIGNCURRENCY ASSETS AND LIABILITIES AT YEAR END WHETHER OR NOT TRANSACTIONS OCCUR COMPANIES COULD HEDGE AGAINST THIS TAX EXPOSURE OR LEND POUNDS INSTEAD OF DOLLARS THE FIRM SAYS PENALTIES FOR NEGLIGENCE OR SUBSTANTIAL UNDERSTATEMENTS OF TAX WOULD BE HARDER TO AVOID UNDER CLINTON'S PLAN EVEN FOR DOUBTFUL ITEMS DISCLOSED ON A RETURN THE ITEMS WOULD NEED TO BE REASONABLE BEING NOT FRIVOLOUS NO LONGER WOULD SUFFICE SPOUSES AND OTHERS ACCOMPANYING SOMEONE ON A BUSINESS TRIP COULD DEDUCT EXPENSES ONLY IF THEY WERE ACTUAL EMPLOYEES TRAVELING ON BUSINESS UNDER CLINTON'S PLAN NOW NONEMPLOYEE SPOUSES MAY DEDUCT EXPENSES IF THEY SHOW A BUSINESS PURPOSE MONTANA PUNISHED CONVICTED DEALERS UNCONSTITUTIONALLY WITH ITS DRUG TAX RICHARD M KURTH AND OTHERS OF HIS FAMILY WERE CAUGHT WITH 1811 OUNCES OF MARIJUANA AND 2155 PLANTS AND PLEADED GUILTY TO ILLEGALDRUG CHARGES THEY ALSO FILED FOR BANKRUPTCY AFTER MONTANA BILLED THEM FOR 865000 UNDER ITS 100ANOUNCE ILLEGALDRUG TAX A BANKRUPTCY JUDGE REDUCED THE AMOUNT TO 208105 BUT HELD THAT EVEN THAT VIOLATED THE KURTHS' RIGHT TO PROTECTION FROM DOUBLE JEOPARDY WHEN A FEDERAL DISTRICT JUDGE AGREED THE STATE TURNED TO THE NINTHCIRCUIT APPEALS COURT NOW THAT COURT SAYS THE TAX WAS APPLIED UNCONSTITUTIONALLY TO THE KURTHS ALTHOUGH WITHOUT SAYING THE TAX ITSELF IS UNCONSTITUTIONAL THE ISSUE JUDGE BEEZER WRITES IS WHETHER THE STATE TAXED THE KURTHS AS A SECOND CRIMINAL PUNISHMENT FOR AN OFFENSE FOR WHICH THEY ALREADY HAD BEEN PUNISHED IN THE CRIMINAL CASE A HEAVY CIVIL PENALTY ON TOP OF A SEPARATE CRIMINAL PENALTY MAY BE DOUBLE JEOPARDY MONTANA REFUSED TO OFFER EVIDENCE RELATING THE TAX TO THE STATE'S COSTS AND DAMAGES FROM THE KURTHS' ACTIVITY WITHOUT SUCH JUSTIFICATION THE TAX BECAME DOUBLE JEOPARDY THE JUDGE SAYS BRIEFS SEN PRYOR D ARK PLANS TO REINTRODUCE TODAY THE TAXPAYERRIGHTS MEASURES THAT WERE IN THE TAX BILL VETOED LAST FALL BY PRESIDENT BUSH CLINTON PROPOSES TO RAISE THE WITHHOLDINGTAX RATE ON BONUSES TO 28 FROM 20 9303100055 930310 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 310 90 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 317 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 315 30 DAYS 316 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 267 TWO MONTHS 268 THREE MONTHS 283 SIX MONTHS 301 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 312 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 304 90 DAYS 307 120 DAYS 310 150 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 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 712 60 DAYS 722 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 718 60 DAYS 728 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 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 9303100054 930310 INTERNATIONAL FOUR BIG ARGENTINE FIRMS STAKE FUTURE ON ROLE IN NATION'S PRIVATIZATION PUSH BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUENOS AIRES ARGENTINA IS UNDER NEW OWNERSHIP BILLIONS OF DOLLARS OF STATE ASSETS HAVE GONE TO PRIVATE HANDS IN THE PAST THREE YEARS EVERYTHING FROM THE FLAGCARRYING AIRLINE TO A ZOO GAS AND WATER UTILITIES TWO TELEPHONE COMPANIES OIL FIELDS A HUGE STEELMAKER RAIL AND SUBWAY LINES TV STATIONS A HOTEL A RACECOURSE AND THE NATIONAL MINT ARE ON THE BLOCK THE SALES HAVE RAISED 53 BILLION IN CASH AND CUT ARGENTINA'S DEBTS BY 67 BILLION THEY'VE ALSO BROUGHT IN MAJOR FOREIGN INVESTMENT BUT WHILE FOREIGN GROUPS ARE MANAGING MANY OF THE PRIVATIZED COMPANIES FOUR ARGENTINE GROUPS LITTLE KNOWN ABROAD ARE ALSO BIG PLAYERS ACTING USUALLY AS MINORITY PARTNERS PEREZ COMPANC ORGANIZACION TECHINT SOCIEDAD COMERCIAL DEL PLATA AND ASTRA CIE ARGENTINA DE PETROLEO SA HAVE SNAPPED UP SO MUCH THEY ARE BEING CALLED ARGENTINA'S NEW OWNERS TO SOME THEIR VORACIOUS APPETITE IS A WORRYING SIGN OF A CONCENTRATION OF CAPITAL HAVING GROWN OFF STATE CONTRACTS OR CONCESSIONS THAT ALLOWED THEM TO SURVIVE THEY ARE CAPITALIZING ON THE STATE'S RETREAT TO CONSOLIDATE THEIR POWER CRITICS SAY BUT TO OTHERS THESE GROUPS ARE LEADING AN ENTREPRENEURIAL REVOLUTION THAT COULD CREATE GLOBALSIZED ARGENTINE COMPANIES THE FAMILYCONTROLLED GROUPS ARE BETTING A FORTUNE ON ARGENTINA'S FUTURE IF THEY FAIL THEY COULD BE STUCK WITH CRIPPLING DEBT BUT IF THEY SUCCEED THEY COULD BE THE DYNASTIES OF 2010 SAYS A BANKER HERE'S A LOOK AT THEM PEREZ COMPANC IS A CONGLOMERATE ACTIVE IN OIL AND NATURAL GAS CONSTRUCTION PETROCHEMICALS COMMUNICATIONS SUPERMARKETS AND OTHER BUSINESSES CIA NAVIERA PEREZ COMPANC THE MAIN HOLDING COMPANY HAD SALES OF 915 MILLION AND NET PROFIT OF 104 MILLION FOR THE YEAR ENDED AUGUST 1992 CHAIRMAN JORGE GREGORIO PEREZ COMPANC ALSO OWNS 30 OF BANCO RIO DE LA PLATA SA ARGENTINA'S BIGGEST BANK THE PEREZ COMPANC GROUP WAS THE BIGGEST LOCAL PLAYER IN PRIVATIZATIONS SPENDING 980 MILLION FOR STAKES IN TWO TELEPHONE COMPANIES TWO ELECTRIC UTILITIES A GASDISTRIBUTION COMPANY OIL FIELDS AND REFINERIES A PIPELINE AND ROAD AND TRAIN CONCESSIONS THE STRATEGY SEEMS TO BE GRAB AS MUCH AS YOU CAN AND WE'LL SORT IT OUT LATER SAYS STOCKBROKER CHRISTOPHER ECCLESTONE BUT OSCAR VICENTE VICE PRESIDENT OF THE GROUP SAYS WE'RE IN A LOT OF TENDER OFFERS BUT WE FOLLOW A LINE WE DIDN'T BID FOR WATERWORKS THE AIRLINE OR TV STATIONS WE'RE IN 15 COMPANIES BUT MAINLY IN THREE AREAS OIL AND GAS TELECOMMUNICATIONS AND THE GENERATION AND DISTRIBUTION OF GAS AND ELECTRICITY INSTEAD OF BEING SUBCONTRACTORS OF THE STATE WE WANTED TO TAKE RISKS ANALYSTS SAY PEREZ COMPANC HAS DISPERSED ITS HOLDINGS IN TOO MANY COMPANIES THAT ITS DEBTS OF AT LEAST 350 MILLION ARE TOO BIG AND THAT IT OVERPAID FOR SOME ASSETS BUT MR VICENTE SAYS THE GROUP CAN RAISE CASH BY SELLING PERIPHERAL ASSETS CAN TAP THE MARKETS FOR MORE FUNDS AND CAN CHANNEL CONSTRUCTION WORK TO ITS UNIT THOUGH ITS PRIVATIZATION INVESTMENTS TOTALED ONLY 2418 MILLION COMERCIAL DEL PLATA HAS CHANGED DRAMATICALLY THROUGH ITS ACQUISITIONS SAYS CHAIRMAN SANTIAGO SOLDATI WHOSE FAMILY CONTROLS 54 OF THE GROUP BY BUYING STAKES IN A BIG WATER UTILITY GAS TRANSPORTATION AND DISTRIBUTION OIL AND GAS FIELDS OIL REFINERIES A PHONE COMPANY TV AND RADIO STATIONS AND TRAIN LINES COMERCIAL DEL PLATA HAS REINFORCED ITS CORE ENERGY AND CONSTRUCTION BUSINESSES WHILE DIVERSIFYING ONE PROMINENT BUSINESSMAN SAYS COMERCIAL DEL PLATA BOUGHT WITHOUT A STRATEGY AND LOOKS LIKE A MUTUAL FUND WITH ITS HAND IN EVERY PIE BUT ANALYST CHRIS TUCKER OF INVESTCAPITAL SA SAYS THEY HAD THE BEST STRATEGY THEY GREW THEIR OIL BUSINESS AND PROVIDE WORK FOR THEIR CONSTRUCTION BUSINESS WHICH WILL HAVE THE INSIDE TRACK ON CONTRACTS MR SOLDATI SAYS IT'S NOT LIKE WE SUDDENLY SAW PRIVATIZATIONS AND SAID LET'S GET INTO THE GAME AND PLAY THE ROULETTE AND SEE WHAT WE GET' WE HAD AN IDEA OF WHAT WE WANTED TO DO WE TRIED TO INVEST IN GOOD AREAS GOOD COMPANIES AND WITH GOOD PARTNERS IF THEY'RE MANAGED CORRECTLY THEY'LL BE VERY PROFITABLE BUT ANALYSTS SAY THE GROUP'S PROFIT OF ABOUT 28 MILLION IN 1992 WILL CONTINUE TO BE WEIGHED DOWN BY DEBT WHICH HAS SOARED TO ABOUT 270 MILLION FROM 150 MILLION FIVE MONTHS AGO IN 1945 STEEL EXECUTIVE AGOSTINO ROCCA'S TIES TO BENITO MUSSOLINI'S FASCIST REGIME FORCED HIM TO LEAVE ITALY HE MOVED TO ARGENTINA AND FOUNDED TECHINT NOW THE COUNTRY'S LARGEST INDUSTRIAL CONGLOMERATE WITH INTERESTS IN STEEL CONSTRUCTION OIL AND ENGINEERING SO COMPLEX IS THE GROUP THAT ITS CURRENT CHAIRMAN ROBERTO ROCCA AGOSTINO'S SON ONCE DESCRIBED IT AS ANARCHIC ITS SHAREHOLDING STRUCTURE AND CONSOLIDATED ACCOUNTS ARE SKETCHY ALTHOUGH IT IS ESTIMATED TO HAVE ANNUAL SALES OF ABOUT 2 BILLION PROFIT OF 100 MILLION AND DEBTS OF 450 MILLION TECHINT SPENT ABOUT 533 MILLION FOR STAKES IN STEELMAKER SOMISA A PHONE COMPANY OIL FIELDS GAS AND ELECTRICAL DISTRIBUTION AND ROAD AND RAIL CONCESSIONS SOME REPRESENT DIVERSIFICATION BUT TECHINT SAYS THE LOGIC IS TO FUNNEL BUSINESS TO ITS CONSTRUCTION OR ENGINEERING ARMS WE PARTICIPATED IN THINGS IN WHICH WE ALREADY PARTICIPATED AS BUILDERS SAYS COMPANY SPOKESMAN ALBERTO IBANEZ WE'RE DOING WHAT WE KNOW AND WHAT OUR FINANCES ALLOWED US TO DO STILL ANALYSTS CRITICIZE TECHINT FOR OVERPAYING FOR SOME ASSETS AND ARE SKEPTICAL ABOUT ITS INVESTMENT IN SOMISA WITH ITS OUTDATED TECHNOLOGY BUT TECHINT IS CONFIDENT ITS INVESTMENTS WILL BE PROFITABLE THERE ISN'T MUCH MORE FOR US TO BUY SAYS MR IBANEZ NOW WHAT WE HAVE TO DO IS MAKE ALL THIS WORK UNLIKE THE OTHER BIG PLAYERS ASTRA EXPANDED WHILE STICKING TO ITS CORE ENERGY BUSINESS THE COMPANY HAS SHELLED OUT 348 MILLION TO BUY OIL FIELDS AND STAKES IN A PIPELINE A REFINERY THE METROGAS GAS DISTRIBUTION COMPANY AND THE EDENOR ELECTRIC UTILITY WE DON'T WANT TO INVEST IN A CHOCOLATE COMPANY TODAY AND OIL TOMORROW SAYS ASTRA PRESIDENT RICARDO GRUNEISEN WHOSE FAMILY IS A BIG SHAREHOLDER IN THE GROUP WE DECIDED TO GROW IN OIL AND GAS AT THE SAME TIME WE'RE TRYING TO COMPENSATE FOR THE VOLATILITY OF OIL PRICES ON OUR REVENUE WITH FIXED REVENUE IN SERVICES WITH THE NEW ACQUISITIONS ASTRA'S 1993 SALES ARE EXPECTED TO RISE NEARLY 50 TO 640 MILLION PROFIT ESTIMATED AT 43 MILLION FOR 1992 WILL RISE TO ABOUT 55 MILLION HELD BACK BY HIGH COSTS AT EDENOR AND NEW DEBTS OF 150 MILLION ANALYSTS SAY BUT MR GRUNEISEN SAYS THE GROUP HAS STARTED RESTRUCTURING SELLING ITS STAKE IN A CELLULAR PHONE COMPANY AND RATIONALIZING ITS ENGINEERING AND DRILLING EQUIPMENT INTERESTS ASTRA ISSUED A 100 MILLION EUROBOND LAST YEAR AND AT SOME POINT WE'LL GO TO THE STOCK MARKET HE SAYS 9303100053 930310 BUSINESS BRIEF GEORGIAPACIFIC CORP ENVIRONMENTAL CLEANUP COST COULD EXCEED THE RESERVES GEORGIAPACIFIC CORP ATLANTA SAID ITS COSTS FOR CLEANING UP ENVIRONMENTAL CONTAMINATION AT VARIOUS SITES COULD EXCEED THE COMPANY'S CURRENT RESERVES BY AS MUCH AS 100 MILLION BUT COMPANY OFFICIALS WOULDN'T SAY HOW MUCH IT HAS RESERVED FOR SUPERFUND AND SIMILAR CLEANUPS IN ITS JUSTRELEASED ANNUAL REPORT THE FOREST PRODUCTS CONCERN SAID THE UNCOVERED LIABILITIES MIGHT BE INSIGNIFICANT THE COMPANY SAID IT BASED THE 100 MILLION FIGURE ON THE WORST REASONABLY POSSIBLE OUTCOMES ASSUMING THAT OTHERS WOULD SHARE THE EVENTUAL CLEANUP COSTS BUT THAT INSURANCE COMPANIES WOULDN'T COVER ANY OF GEORGIAPACIFIC'S COSTS INSURERS HAVE BEEN ARGUING THAT THEIR LIABILITY POLICIES SHOULDN'T COVER SUCH CLEANUP COSTS BECAUSE THE 1980 SUPERFUND LAW IMPOSED RESPONSIBILITIES THAT WEREN'T FORESEEN WHEN THE POLICIES WERE WRITTEN GEORGIAPACIFIC DISCLOSED THAT IT FILED A SUIT IN WASHINGTON STATE IN LATE 1992 AGAINST NUMEROUS INSURANCE CARRIERS SEEKING A DECLARATORY JUDGMENT THAT ENVIRONMENTAL REMEDIATION AND RELATED COSTS ARE COVERED BY THE CARRIERS' GENERAL LIABILITY INSURANCE POLICIES THE LAWSUIT FILED IN SUPERIOR COURT OF KING COUNTY WASH LISTS 39 SITES INCLUDING LANDFILLS RIVERS AND FACTORIES IN WASHINGTON MICHIGAN AND OTHER STATES THE FIRM WOULDN'T ELABORATE 9303100052 930310 BUSINESS BRIEF TUESDAY MORNING CORP CATALOG UNIT TO BE CLOSED RETAILER TO FOCUS ON SHOPS TUESDAY MORNING CORP SAID IT WILL CLOSE ITS UNPROFITABLE CATALOG DIVISION AND CONCENTRATE ON ITS CORE RETAILING BUSINESS THE SPECIALTY RETAILER BASED IN DALLAS SAID THE CATALOG BUSINESS CONTRIBUTED TO MEDIOCRE RESULTS IN THE FOURTH QUARTER THE COMPANY POSTED NET INCOME FOR THE PERIOD ENDED DEC 31 OF 65 MILLION OR 71 CENTS A SHARE COMPARED WITH 64 MILLION OR 82 CENTS A SHARE A YEAR EARLIER ON FEWER SHARES OUTSTANDING PERSHARE AMOUNTS WERE ALSO ADJUSTED FOR A 2FOR1 STOCK SPLIT IN THE YEARAGO QUARTER SALES CLIMBED 32 TO 71 MILLION FOR THE YEAR TUESDAY MORNING REPORTED THAT NET ROSE 64 TO 82 MILLION OR 72 CENTS A SHARE FROM 5 MILLION OR 67 CENTS A SHARE IN 1991 SALES GREW 30 TO 1601 MILLION IN 1992 THE COMPANY SAID THE CATALOG DIVISION HAD A LOSS OF 11 MILLION ON ABOUT 75 MILLION IN SALES IN 1992 THE DIVISION LAUNCHED IN LATE 1991 WAS BECOMING A DISTRACTION A COMPANY SPOKESMAN SAID INSTEAD THE COMPANY WILL FOCUS ON CONTINUING TO ADD ABOUT 40 MORE STORES TO ITS PROFITABLE RETAIL CHAIN EACH YEAR 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 9303100051 930310 BUSINESS BRIEF ELJER INDUSTRIES INC POSTING OF BOND IS APPROVED ALLOWING APPEAL TO PROCEED ELJER INDUSTRIES INC SAID IT APPEALED A RECENT 122 MILLION ARBITRATION AWARD AGAINST IT IN A FEDERAL APPEALS COURT IN CHICAGO AFTER LENDERS AGREED TO LET IT POST A REQUIRED 126 MILLION BOND UNDER TERMS OF ITS RECENTLY AMENDED CREDIT AGREEMENT THE DALLAS PLUMBING PRODUCTS MAKER NEEDED APPROVAL OF LENDERS TO EITHER POST THE BOND OR TO PAY THE JUDGMENT THE COMPANY SAID IT GENERATED THE FUNDS INTERNALLY IF THE LENDERS HADN'T ALLOWED ELJER TO POST THE BOND THE COMPANY WOULD HAVE BEEN IN DEFAULT OF THE CREDIT AGREEMENT ALTHOUGH A FEDERAL COURT IN CHICAGO REDUCED THE ARBITRATION AWARD FROM 17 MILLION LAST WEEK ELJER SAID IT BELIEVED THE COURT ERRED IN NOT REDUCING OR VACATING ALL ELEMENTS OF THE AWARD THE DISPUTE STEMS FROM ACCUSATIONS OF FRAUD AND MISREPRESENTATION MADE BY KOWIN DEVELOPMENT CORP A CALIFORNIA COMPANY THAT WAS A PARTNER IN A JOINT VENTURE WITH HOUSEHOLD MANUFACTURING INC THE PREDECESSOR TO ELJER'S ELJER MANUFACTURING INC UNIT TO MAKE AND SELL METAL FILES IN CHINA 9303100050 930310 WHAT'S NEWS WORLDWIDE RODNEY KING TESTIFIED FOR THE FIRST TIME SINCE HIS 1991 BEATING BY POLICE KING TOOK THE WITNESS STAND IN LOS ANGELES TO TESTIFY AGAINST FOUR WHITE OFFICERS ACCUSED OF FEDERAL CIVIL RIGHTS VIOLATIONS HE SAID ONE OFFICER USED A RACIAL EPITHET DURING THE BEATING AS HE TOLD KING OH WE'RE GOING TO KILL YOU KING TESTIFIED THAT I WAS TRYING TO STAY ALIVE AND SAID HE DIDN'T PROVOKE THE ATTACK AFTER THE VIDEOTAPED BEATING WHICH FOLLOWED A HIGHWAY CHASE THE BLACK MOTORIST SAID HE WONDERED WHAT DID I DO TO DESERVE THAT TYPE OF PAIN KING 27 DIDN'T TESTIFY IN THE OFFICERS' EARLIER TRIAL ON STATE CHARGES THE DEFENDANTS WERE ACQUITTED ON ALL BUT ONE LESSER CHARGE LAST APRIL SPARKING THREE DAYS OF RIOTS IN LOS ANGELES CLINTON SAID HE WOULD TRY TO MOBILIZE SWIFT WESTERN HELP FOR RUSSIA IN AN EFFORT TO KEEP POLITICAL AND ECONOMIC REFORMS ON TRACK THERE ADDING THAT THE CRISIS CAN'T WAIT UNTIL A SEVENNATION SUMMIT IN JULY HE SAID THE RUSSIAN SITUATION WAS A MAJOR TOPIC AT AN OVAL OFFICE MEETING BETWEEN HIM AND FRENCH PRESIDENT MITTERRAND PRESIDENT YELTSIN INFORMED HIS OPPONENTS THAT HE WOULD BE READY TO DISCUSS A POWERSHARING COMPROMISE AT THE EMERGENCY SESSION OF RUSSIA'S PARLIAMENT THAT STARTS TODAY BUT HIS CHIEF RIVAL PARLIAMENTARY SPEAKER KHASBULATOV WARNED THAT LEGISLATORS MIGHT TRY TO IMPEACH YELTSIN AN FBI OFFICIAL TOLD CONGRESS THAT A WELLKNOWN TERRORIST GROUP PROBABLY IS RESPONSIBLE FOR THE BOMBING AT NEW YORK'S WORLD TRADE CENTER BUT LAW ENFORCEMENT EXPERTS SAID THERE WASN'T ANY REASON TO FEAR A WAVE OF SUCH INCIDENTS THE COMMENTS CAME DURING A CONGRESSIONAL HEARING INTO THE FEB 26 BOMBING JANET RENO PLEDGED TO BLEND TOUGH LAW ENFORCEMENT WITH RESPECT FOR PEOPLE'S RIGHTS AT A SMOOTH CONFIRMATION HEARING THAT BOTH DEMOCRATS AND REPUBLICANS PREDICTED WOULD LEAD TO HER APPROVAL AS THE NATION'S FIRST FEMALE ATTORNEY GENERAL RENO HAS BEEN MIAMI'S CHIEF LOCAL PROSECUTOR FOR 15 YEARS SERB FORCES ADVANCED ON THE MUSLIM ENCLAVE OF SREBRENICA IN EASTERN BOSNIA AND A CONVOY CARRYING BEDDING AND MEDICINE FOR WAR VICTIMS WAS HALTED BEFORE IT EVEN LEFT SERBIA MEANWHILE THE BOSNIAN SERB AIR FORCE SUGGESTED US PLANES MIGHT BE DROPPING GUNS NOT FOOD TO MUSLIMS AND WERE SPYING ON SERB GROUND FORCES PROSECUTORS IN JAPAN REPORTEDLY SEIZED GOLD BARS AND CASH WEIGHING SEVERAL HUNDRED POUNDS AND VALUED AT 85 MILLION FROM THE OFFICES OF SHIN KANEMARU WHO WAS A KEY FIGURE IN THE RULING PARTY UNTIL LAST YEAR KANEMARU AND AN AIDE WERE ARRESTED SATURDAY ON SUSPICION OF TAX EVASION ARAB STATES AND ISRAEL WILL BE INVITED TO RESUME THEIR PEACE TALKS IN WASHINGTON ON APRIL 20 CLINTON ADMINISTRATION OFFICIALS SAID THE OFFICIALS SAID THE US AND RUSSIA WHICH ARE COSPONSORING THE TALKS WOULD ISSUE THE INVITATIONS WITHIN A FEW DAYS TO ISRAEL SYRIA LEBANON JORDAN AND A PALESTINIAN DELEGATION PRIME MINISTER AMATO AVERTED THE COLLAPSE OF ITALY'S GOVERNMENT BY SHELVING A DECREE TO PARTIALLY DECRIMINALIZE ILLEGAL POLITICAL FINANCING BUT HIS GOVERNMENT REMAINED PRECARIOUS AMID FALLOUT FROM A CORRUPTION PROBE POLICE ARRESTED THE CHAIRMAN OF A CONGLOMERATE CHARGING THAT HE AUTHORIZED KICKBACKS THE SENATE ENDED A REPUBLICAN FILIBUSTER AGAINST LEGISLATION ALLOWING CITIZENS TO REGISTER TO VOTE WHEN THEY APPLY FOR A DRIVER'S LICENSE OR VARIOUS STATE AND LOCAL SERVICES FIVE GOP MEMBERS BROKE RANKS AND JOINED ALL 57 DEMOCRATS IN THE VOTE TO STEM DEBATE A FINAL VOTE HASN'T BEEN SCHEDULED THE HOUSE PASSED A SIMILAR BILL LAST MONTH ANGOLA'S UNITA REBELS THREATENED TO ATTACK US AND OTHER FOREIGN OIL COMPANIES IF GOVERNMENT FORCES TRY TO TAKE BACK GUERRILLACONTROLLED AREAS IN NORTHERN ANGOLA REBEL LEADER SAVIMBI ALSO URGED HIS FOLLOWERS TO TAKE UP ARMS AGAIN IN THE RENEWED CIVIL WAR AND DEMANDED THE REMOVAL OF A UN MEDIATOR IN ANGOLA AFGHAN GOVERNMENT FORCES CLASHED WITH IRANIANBACKED INSURGENTS IGNORING A TENUOUS TRUCE REACHED BY THEIR LEADERS WITNESSES IN KABUL SAID AS MANY AS 100 PEOPLE MAY HAVE BEEN KILLED OR WOUNDED RIVAL FACTIONS HAD AGREED TO THE CEASEFIRE DURING TALKS LAST WEEKEND 9303100049 930310 BUSINESS BRIEF LESLIE FAY COS CONCERN REACHES AGREEMENT WITH CREDITORS ON FINANCING LESLIE FAY COS SAID IT REACHED A NEW AGREEMENT WITH ITS BANKS AND ITS INSURANCE COMPANY LENDERS FOR A 120DAY REVOLVING CREDIT FACILITY LESLIE FAY WOULDN'T DISCLOSE THE AMOUNT OF THE INTERIM FINANCING BUT A COMPANY SPOKESWOMAN SAID THE FUNDING IS MORE THAN ADEQUATE TO MEET THE COMPANY'S PROJECTED CASH FLOW NEEDS THE WOMEN'S APPAREL MAKER HAS BEEN IN DISCUSSIONS WITH ITS CREDITORS LED BY CHEMICAL BANK AFTER THE COMPANY ANNOUNCED ON FEB 1 THAT ITS CONTROLLER ADMITTED TO HAVING MADE FALSE ENTRIES ON THE COMPANY'S FINANCIAL RECORDS AS A RESULT THE COMPANY RESTATED ITS EARNINGS FOR 1991 AND 1992 BEFORE THE ACCOUNTING SCANDAL LESLIE FAY SAID IT HAD AGREEMENTS WITH ITS LENDERS FOR 350 MILLION IN CREDIT FACILITIES LESLIE FAY HAS A TOTAL OF 250 MILLION IN LONGTERM AND SHORTTERM DEBT ANALYSTS VIEWED THE INTERIM FINANCING AS A POSITIVE STEP FOR THE COMPANY THIS GIVES THEM SOME LEEWAY AND SHOWS THAT ON A TEMPORARY BASIS THE BANKS ARE BACKING THE COMPANY SAID DEBORAH BRONSTON AN ANALYST AT PRUDENTIAL SECURITIES 9303100048 930310 CREDIT MARKETS BOND PRICES FALL AS MARKET IGNORES POSITIVE NEWS SHORTERTERM SECURITIES SHOW SHARPEST DECLINES BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS TUMBLED WITH SEVENYEAR AND 10YEAR NOTES ENDING WITH THE BIGGEST LOSSES THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT TO 104 27/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 674 FROM 672 MONDAY SHORT AND INTERMEDIATETERM SECURITIES FELL EVEN FURTHER THE 10YEAR NOTE FOR INSTANCE DROPPED 1/2 POINT TO 102 15/32 FOR A YIELD OF 591 UP FROM 584 THE DECLINES WERE NOTABLE BECAUSE THEY CAME DURING A DAY OF GENERALLY POSITIVE NEWS FOR THE BOND MARKETS THIS PROMPTED SOME PARTICIPANTS TO SAY CAUTIOUSLY THAT THE LATEST RALLY MAY FINALLY HAVE PETERED OUT THIS KIND OF NEWS TEN DAYS AGO OR EVEN EARLY LAST WEEK WOULD HAVE GIVEN YOU AN INCREASE IN PRICES AND INSTEAD YOU GOT AN INCREASE IN YIELDS SAID ALAN LEVENSON MONEY MARKET ECONOMIST AT UBS SECURITIES INC YOU GET THE IMPRESSION THAT ALL THE GOOD NEWS IS PRICED IN YESTERDAY'S NEWS CENTERED ON EFFORTS IN WASHINGTON TO CUT GOVERNMENT SPENDING AMONG THE REPORTS THAT MIGHT HAVE BOOSTED BOND PRICES A FEW DAYS AGO THERE WAS WORD THAT PRESIDENT CLINTON HAD APPROVED SENATE ATTEMPTS TO CUT AS MUCH AS 90 BILLION IN GOVERNMENT SPENDING EFFORTS TO CUT GOVERNMENT SPENDING AND THUS NARROW THE FEDERAL BUDGET DEFICIT ARE OFTEN GREETED ENTHUSIASTICALLY IN THE BOND MARKETS BECAUSE MANY INVESTORS BELIEVE A SHRINKING DEFICIT COULD BRING ABOUT EVEN LOWER INTEREST RATES ALSO THE TREASURY DEPARTMENT DENIED THAT PROPOSALS TO EASE THE CREDIT CRUNCH WOULD INCLUDE MEASURES MAKING IT LESS ATTRACTIVE FOR BANKS TO HOLD TREASURY SECURITIES BANKS HAVE BEEN BIG BUYERS OF SHORTTERM TREASURYS SOME CRITICS HAVE SAID THOSE FUNDS INSTEAD SHOULD HAVE BEEN USED FOR LENDING THE ABSENCE OF BANKS FROM THE TREASURY MARKET COULD MEAN LESS DEMAND AND LOWER PRICES FOR TREASURY SECURITIES THE UNINSPIRED MARKET EVEN FAILED TO COME TO LIFE ON NEWS OF WEAK SALES AT RETAILING CONCERNS THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC SAID CHAIN AND DEPARTMENT STORE SALES FELL 16 DURING THE FIRST WEEK OF MARCH FROM FEBRUARY EVEN AS INTEREST RATES ROSE YESTERDAY THEY REMAINED ATTRACTIVE FOR A WIDE VARIETY OF CORPORATIONS AND MUNICIPALITIES WHICH SOLD MORE THAN 34 BILLION OF NEW NOTES AND BONDS AMONG YESTERDAY'S NOTABLE DEALS WAS A 400 MILLION OFFERING OF SEVENYEAR NOTES BY DEAN WITTER DISCOVER CO A UNIT OF SEARS ROEBUCK & CO BUT THE MOOD IN THE TREASURY MARKET WAS MORE PESSIMISTIC THAN IN PAST WEEKS WHEN YIELDS FOR LONGTERM SECURITIES SUCH AS THE 10YEAR NOTE DROPPED TO THEIR LOWEST LEVELS IN MORE THAN TWO DECADES THERE'S JUST BEEN A SOURING OF SENTIMENT SAID MR LEVENSON OF UBS SECURITIES MUCH OF THE BLAME FOR THE MARKET'S INABILITY TO CONTINUE ITS HISTORIC RALLY WAS PINNED ON THE FEBRUARY EMPLOYMENT REPORT RELEASED FRIDAY WALL STREET WAS SURPRISED BY THE STRENGTH OF THE REPORT WHICH INCLUDED A SURGE OF 365000 IN NONFARM PAYROLLS THE RESILIENCE SHOWN BY THE TREASURY MARKET IN RESPONSE TO THE REPORT WAS CALLED INTO QUESTION YESTERDAY ON FRIDAY THE BENCHMARK 30YEAR TREASURY BOND RECOVERED FROM VERY STEEP EARLY LOSSES TO END WITH A LOSS OF LESS THAN 1/8 POINT MANY INVESTORS HAD BEEN CONVINCED THAT ALTHOUGH THE ECONOMY WAS CLEARLY IMPROVING A SLUGGISH JOB MARKET WOULD KEEP A LID ON THE PACE OF GROWTH AND ON INFLATION BUT THE STRONG JOBS REPORT ALTERED THAT PERCEPTION THE EMPLOYMENT REPORT PUT FEAR INTO ENOUGH PEOPLE THAT NOW YOU'RE GOING TO NEED SIGNS THE EMPLOYMENT REPORT WAS AN ANOMALY BEFORE THE RALLY CAN RESUME SAID MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP AS A RESULT THE NEARTERM TREND TOWARD LOWER YIELDS HAS DEFINITELY BEEN DISCONTINUED SAID MR ALEXY WE'RE JUST GOING TO TRADE IN RANGES FOR A COUPLE OF DAYS THE SENSE THE MARKET MAY HAVE GONE AS FAR AS IT'S GOING TO GO FOR THE TIME BEING HAS ENCOURAGED SOME INVESTORS TO CASH IN SOME OF THEIR CHIPS WE'VE SEEN FOREIGN SELLING HEDGE FUND SELLING AND WE'VE SEEN REAL CUSTOMER SELLINGPEOPLE THAT HAD GOOD PROFITS IN THEIR TRADES SAID BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES INC MUCH OF THE SELLING WAS CONCENTRATED IN SHORTTERM AND INTERMEDIATE SECURITIES WITH HOPES FOR DEFICIT REDUCTION CUSHIONING THE BLOW FOR THE LONG BOND WITH YIELDS FALLING FASTER FOR SHORTERTERM SECURITIES THAN FOR THE LONGTERM BOND THE RESULT HAS BEEN A FLATTER YIELD CURVEA NARROWING OF THE GAP IN YIELDS BETWEEN THE TWO ENDS OF THE CURVE AT THE CLOSE OF TRADING YESTERDAY THE SPREAD BETWEEN THE TWOYEAR NOTE AND 30YEAR BOND STOOD AT 274 PERCENTAGE POINTS DOWN FROM 277 PERCENTAGE POINT LATE MONDAY AS INTEREST RATES BACKED UP SLIGHTLY A WIDE RANGE OF COMPANIES SOLD 24 BILLION OF NEW BONDS SEVERAL OF YESTERDAY'S BORROWERS MADE TRIPS TO THE MARKET ONLY A FEW WEEKS AGO SUGGESTING THAT SOME CORPORATE TREASURERS MAY NOT BELIEVE THAT INTEREST RATES WILL MOVE SUBSTANTIALLY LOWER SOON SEASONED BONDS DROPPED 1/8 POINT TO 3/8 POINT IN MODERATE TRADING IN LINE WITH TREASURYS JUNK BONDS ENDED 1/8 POINT HIGHER BUT TRADING WAS THIN AS INVESTORS FOCUSED ON NEW DEALS BONDS OF WESTINGHOUSE ELECTRIC CORP WERE LITTLE CHANGED DESPITE A MOVE BY STANDARD & POOR'S CORP TO DOWNGRADE THE COMPANY'S SENIOR DEBT TO TRIPLEB FROM SINGLEAMINUS AND SUBORDINATED DEBT AND PREFERRED STOCK TO TRIPLEBMINUS FROM TRIPLEBPLUS AMONG THE MORE INTERESTING DEALS WAS A 400 MILLION OFFERING BY DEAN WITTER DISCOVER CO THE OFFERING WAS THE SEARS ROEBUCK UNIT'S SECOND DEBT OFFERING IN AS MANY WEEKS THE COMPANY ALSO RAISED 755 MILLION IN AN INITIAL PUBLIC OFFERING OF STOCK FEB 22 DEAN WITTER DISCOVER'S OFFERING OF SEVENYEAR NOTES WAS PRICED TO YIELD 639 A 082 PERCENTAGE POINT SPREAD ABOVE THE TREASURY SEVENYEAR NOTE ON FEB 25 THE COMPANY OFFERED 750 MILLION IN FIVEYEAR NOTES YIELDING 607 AND 750 MILLION IN 10YEAR NOTES YIELDING 694 INVESTOR DEMAND FOR THE LATEST DEAL WAS STRONG BANKERS SAID BY LATE IN THE SESSION THE DEAL WAS SAID TO BE SOLD OUT OTHER BORROWERS YESTERDAY INCLUDED TEXAS UTILITIES CO WHICH RAISED 500 MILLION IN A TWOPART ISSUE OF FIRST MORTGAGE BONDS AND PACIFIC BELL WHICH SOLD 625 MILLION OF 33YEAR DEBENTURES THE SAN FRANCISCO TELEPHONE COMPANY LAST TAPPED THE DEBT MARKET FEB 25 RAISING 325 MILLION THROUGH THE SALE OF NEW 12YEAR NOTES MEANTIME A NUMBER OF THE NEW JUNK BOND DEALS PRICED MONDAY WERE ALREADY TRADING AT A PREMIUM YESTERDAY TRADERS SAID REFLECTING INVESTORS' THIRST FOR HIGHYIELD PAPER GENEVA STEEL 11125 SENIOR NOTES MATURING IN 2001 WERE TRADING AT 102 1/2 WHILE MAYFAIR SUPER MARKETS INC 1175 SENIOR SUBORDINATED NOTES MATURING IN 2003 TRADED AT 101 1/4 BOTH ISSUES WERE PRICED MONDAY AT PAR OR 100 MUNICIPAL BONDS FAILED TO REBOUND AFTER AN EARLY RETREAT AND FINISHED 1/8 TO 3/4 POINT WEAKER ALTHOUGH THE GENERAL MOOD ABOUT TAXEXEMPT BONDS IS STILL POSITIVE DUE TO THE HIGHER FEDERAL INCOME TAXES PROPOSED BY THE CLINTON ADMINISTRATION THE MARKET HAS BEEN A LITTLE SHAKY SINCE FRIDAY'S SLIDE ON THE UNEXPECTEDLY STRONG FEBRUARY EMPLOYMENT DATA WHILE YIELDS ROSE YESTERDAY AS PRICES DECLINED ISSUERS STILL INTRODUCED MORE THAN 1 BILLION OF SECURITIES OKLAHOMA'S 250 MILLION 1992 SERIES A GENERAL OBLIGATION BONDS RECEIVED ATTENTION BECAUSE THEY'RE THE FIRST GOS SOLD FOR THE STATE'S OWN CAPITAL PROGRAM SINCE 1974 AUTHORIZATION TO SELL 350 MILLION OF GENERAL OBLIGATION BONDS WAS APPROVED BY VOTERS IN NOVEMBER THE BULK OF THE PROCEEDS FROM THE BOND SALE ARE EXPECTED TO BE USED FOR HIGHER EDUCATION PROJECTS SAID JAMES JOSEPH STATE BOND ADVISER FOR OKLAHOMA THE REMAINING 100 MILLION OF SECURITIES HE ADDED MAY BE SOLD IN THE MONTHS AHEAD AS COLLEGE SAVERS ZEROCOUPON BONDS A LEHMAN BROTHERS GROUP WON BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 5122 YIELDS WERE SET AT 220 IN 1994 TO 530 IN 2018 BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE RATED THE BONDS DOUBLEA LOWER PRICES BROUGHT BUYERS BACK TO MORTGAGEBACKED SECURITIES HELPING THEM PERFORM BETTER THAN TREASURYS AT LEAST TEMPORARILY BOTH MARKETS ENDED WITH LOSSES BUT THE DECLINES OF LESS THAN 1/8 POINT ON 7 MORTGAGE SECURITIES WERE LESS PRONOUNCED THAN THE LOSSES OF ABOUT 3/8 POINT ON 10YEAR TREASURY NOTES THERE WASN'T OVERWHELMING BUYING BUT STRONG BUYING IN THE MORTGAGE MARKET SAID DON SEGALAS HEAD OF THE MORTGAGE TRADING DESK AT TUCKER ANTHONY INC DESPITE THE MORTGAGE MARKET'S STRENGTH RELATIVE TO TREASURYS YESTERDAY THE RECENT TREND TOWARD GREATER WEAKNESS MAY SOON RESUME PREPAYMENTS ARE STILL A CHIEF CONCERN OF MORTGAGE SECURITIES INVESTORS TRADERS AND ANALYSTS MAINTAIN IN YESTERDAY'S PRIMARY MARKET TWO FANNIE MAE REMICS TOTALING 800 MILLION WERE ANNOUNCED AS WELL AS THE DOUBLING OF A FREDDIE MAC REMIC TO 600 MILLION FROM 300 MILLION 9303100047 930310 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 PACIFIC BELL 625 MILLION ISSUE OF 725 DEBENTURES DUE MARCH 15 2026 WAS PRICED AT 98106 TO YIELD 7277 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS GROSS SPREAD IS 875 SELLING CONCESSION IS 500 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 23 WITH INTEREST ACCRUING MARCH 15 PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP TEXAS UTILITIES CO 500 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS WAS PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO THE FIRST PART CONSISTING OF 200 MILLION OF 675 FIRST MORTGAGE BONDS DUE MARCH 1 2003 WAS PRICED AT 99246 TO YIELD 6855 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 300 MILLION OF 7875 FIRST MORTGAGE BONDS DUE MARCH 1 2023 WAS PRICED AT 9981 TO YIELD 7891 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND BOTH PARTS ARE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P UNDERWRITING FEES FOR THE FIRST PART ARE AS FOLLOWS GROSS SPREAD IS 675 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 UNDERWRITING FEES FOR THE SECOND PART ARE AS FOLLOWS GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 18 WITH INTEREST ACCRUING MARCH 1 DEAN WITTER DISCOVER & CO400 MILLION ISSUE OF 625 NOTES DUE MARCH 15 2000 WAS PRICED AT 99219 TO YIELD 639 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS & CO GROSS SPREAD IS 550 SELLING CONCESSION IS 325 AND REALLOWANCE IS 125 DELIVERY IS SCHEDULED FOR MARCH 16 WITH INTEREST ACCRUING MARCH 15 DEAN WITTER DISCOVER IS A UNIT OF SEARS ROEBUCK COMMONWEALTH EDISON CO 130 MILLION ISSUE OF 6 FIRST MORTGAGE BONDS DUE MARCH 15 1998 WAS PRICED AT 99498 TO YIELD 6118 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 90 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC GROSS SPREAD IS 6 SELLING CONCESSION IS 350 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 16 WITH INTEREST ACCRUING MARCH 15 PROVIDENT BANK 75 MILLION ISSUE OF 7125 SUBORDINATED BANK NOTES DUE MARCH 15 2003 PRICED AT 99851 TO YIELD 7146 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 128 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS GROSS SPREAD IS 675 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 16 FLAT PROVIDENT BANK IS A UNIT OF PROVIDENT BANCORP WYMANGORDON CO 90 MILLION ISSUE OF SENIOR NOTES DUE MARCH 15 2003 WAS PRICED AT PAR TO YIELD 1075 THE SIZE OF THE ISSUE WAS RAISED FROM 80 MILLION THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP DELIVERY IS SCHEDULED FOR MARCH 16 FLAT MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO 4468 MILLION 1993 SERIES A AND B POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS WERE PRICED BY GOLDMAN SACHS & CO SERIES A INCLUDES 3387 MILLION FIXEDRATE BONDS 53 MILLION PERIODIC AUCTION RESET SECURITIES PARS AND 53 MILLION INVERSE FLOATING RATE SECURITIES INFLOS THE FIXEDRATE BONDS HAVE BEEN GIVEN YIELDS THAT RANGE FROM 320 IN 1994 TO 550 IN 2012 FIXEDRATE BONDS DUE IN 1993 AREN'T FORMALLY REOFFERED THE YIELD FOR THE PARS WILL BE RESET AT AUCTIONS HELD EVERY SIX MONTHS AFTER EACH AUCTION THE YIELD FOR THE INFLOS WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE PARS RATE JULY 1 2018 IS THE FINAL MATURITY FOR BOTH THE PARS AND INFLOS THE INFLOS WHICH HAVE BEEN GIVEN AN INITIAL COUPON OF 545 HAVE A CURRENT BOND EQUIVALENT YIELD OF 802 SERIES B COMPRISES 215 MILLION FEDERALLY TAXABLE BONDS WHICH ARE DUE 1997 THEY AREN'T FORMALLY REOFFERED AMBAC INDEMNITY CORP HAS INSURED THE ENTIRE OFFERING AND THE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S S&P AND FITCH INVESTORS SERVICE INC ILLINOIS STATE TOLL HIGHWAY AUTHORITY 3865 MILLION 1993 SERIES A AND B REFUNDING REVENUE BONDS HAVE BEEN PRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP INCLUDED IN THE OFFERING ARE 2014 MILLION 1993 SERIES A TOLL HIGHWAY REFUNDING REVENUE BONDS WHICH HAVE BEEN PRICED TO YIELD FROM 240 IN 1994 TO 515 IN 2005 THERE ARE ALSO 1779 MILLION 1993 SERIES B TOLL HIGHWAY REFUNDING REVENUE BONDS WHICH AREN'T FORMALLY REOFFERED TO INVESTORS THEY ARE DUE IN 2010 THE SERIES A BONDS HAVE BEEN RATED DOUBLEAMINUS BY FITCH INVESTORS SERVICE INC MOODY'S IS EXPECTED TO ASSIGN A SINGLEA1 RATING AND S&P IS EXPECTED TO ASSIGN A SINGLEA RATING SERIES B BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P OKLAHOMA 250 MILLION 1992 SERIES A GENERAL OBLIGATION BONDS WERE APPARENTLY WON BY A LEHMAN BROTHERS GROUP IN COMPETITIVE BIDDING THIS ISSUE IS THE STATE'S FIRST GENERAL OBLIGATION BOND SALE FOR ITS OWN CAPITAL PROGRAM SINCE 1974 AUTHORIZATION TO SELL 350 MILLION IN GENERAL OBLIGATION BONDS WAS APPROVED BY VOTERS IN NOVEMBER 1992 LEHMAN BROTHERS IS BELIEVED TO HAVE WON THE OKLAHOMA BUILDING BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 5122 YIELDS WERE SET AT 220 IN 1994 TO 530 IN 2018 BOTH MOODY'S AND S&P HAVE RATED OKLAHOMA'S GENERAL OBLIGATION BONDS DOUBLEA RIVERSIDE CALIF 118 MILLION ELECTRIC REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A SMITH BARNEY HARRIS UPHAM & CO INC GROUP YIELDS FOR THE ISSUE 1993 OFFERING RANGE FROM 210 IN 1993 TO 539 IN 2013 S&P HAS RATED THE BONDS DOUBLEAMINUS MOODY'S IS EXPECTED TO ASSIGN A DOUBLEA RATING FEDERAL HOME LOAN MORTGAGE CORP THE SERIES GOLD 1489 REMIC SECURITIES DEAL HAS BEEN DOUBLED IN SIZE TO 600 MILLION BY FIRST BOSTON CORP THE OFFERING IS BACKED BY FREDDIE MAC GOLD 15YEAR 650 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 720 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REMIC SECURITIES IS BE FEDERAL HOME LOAN MORTGAGEING OFFERED BY SALOMON BROTHERS THE OFFERING SERIES 199346 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY UBS SECURITIES THE OFFERING SERIES 199347 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 180 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS THE ISSUE SETTLES APRIL 30 FLORIDA POWER & LIGHT CO 75 MILLION ISSUE CUMULATIVE PREFERRED STOCK WAS PRICED THROUGH GOLDMAN SACHS & CO THE 750000 SHARES OF 100ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 698 THE SHARES NONCALLABLE FOR 10 YEARS ARE RATED DOUBLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 16 FLAT FLORIDA POWER & LIGHT IS A UNIT OF FPL GROUP INC EASTERN AMERICAN ENERGY TRUST AN INITIAL OFFERING OF 54 MILLION DEPOSITARY UNITS WAS PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE UNITS CONSIST OF INTERESTS IN THE EASTERN AMERICAN ENERGY TRUST AND INTERESTS IN US TREASURY FLORIDA POWER & LIGHT BONDS GROSS SPREAD IS 110 SELLING CONCESSION IS 65 CENTS AND REALLOWANCE IS 25 CENTS DELIVERY PHYSICAL IS SCHEDULED FOR MARCH 15 TENCOR INSTRUMENTS AN INITIAL OFFERING OF 2225000 SHARES WAS PRICED AT 750 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 8 AND 10 A SHARE TENCOR INSTRUMENTS WILL OFFER 1475000 OF THE SHARES WHILE SELLING SHAREHOLDERS WILL OFFER THE REMAINING 750000 SHARES GROSS SPREAD IS 525 CENTS SELLING CONCESSION IS 28 CENTS AND REALLOWANCE IS 5 CENTS DELIVERY PHYSICAL WITH PENALTY IS SCHEDULED FOR MARCH 15 KOPIN CORP OFFERING OF 1400000 COMMON SHARES AT 1775 A SHARE A KOPIN SPOKESWOMAN SAID THE COMPANY FILED TO OFFER 12 MILLION COMMON SHARES PLUS 200000 SHARES TO COVER OVERALLOTMENTS IN A PRESS RELEASE THE COMPANY SAID IT WILL RECEIVE ALL OF THE PROCEEDS OF THE OFFERING TUCKER ANTHONY INC AND NEEDHAM & CO WERE THE UNDERWRITERS FOR THIS OFFERING MARCUS CORP AN OFFERING OF 17 MILLION COMMON SHARES WAS PRICED AT 21 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE COMPANY WILL OFFER 15 MILLION OF THE COMMON SHARES AND SELLING SHAREHOLDERS WILL OFFER THE REMAINING 200000 COMMON SHARES GROSS SPREAD IS 115 SELLING CONCESSION IS 70 CENTS AND REALLOWANCE IS 10 CENTS DAIWA SECURITIES AMERICA INC 203 MILLION OFFERING OF SECURITIES BACKED BY A POOL OF ADJUSTABLERATE FIRST MORTGAGES ON NURSING HOMES AND CONGREGATE CARE HOMES FOR THE ELDERLY THE OFFERING WHICH DAIWA SAYS IS THE FIRST BACKED BY COMMERCIAL LOANS ON ELDERLY CARE FACILITIES AND THE FIRST TO USE A COMMERCIAL MORTGAGE SHELF REGISTRATION WAS PRICED IN FIVE PARTS AS A SENIOR/SUBORDINATE REMIC TWO SUBORDINATE CLASSES WERE PLACED PRIVATELY THE OFFERING WAS TAKEN DOWN FROM DAIWA MORTGAGE ACCEPTANCE CORP A SHELF REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THE DEAL CALLED COMMERCIAL MORTGAGE PASS THROUGH CERTIFICATE SERIES 19931 IS BACKED BY MORTGAGES BOUGHT BY THE RESOLUTION TRUST CORP IN A COMPETITIVE BID LAST SUMMER AND ARE PRIMARILY 11TH DISTRICT COST OF FUNDS ADJUSTABLERATE MORTGAGES FINAL MATURITIES ON THE LOANS RANGE UP TO 2004 THE 146 MILLION IN CLASS A CERTIFICATES WERE PRICED WITH A COUPON OF THE ONEMONTH LIBOR PLUS 175 BASIS POINTS AT ABOUT 1015 TO YIELD AN EFFECTIVE MARGIN OVER LIBOR OF 125 BASIS POINTS THE CERTIFICATES WITH AN AVERAGE LIFE OF 35 YEARS WERE RATED DOUBLEA BY FITCH INVESTORS SERVICE INC AND S&P THE 102 MILLION IN CLASS B CERTIFICATES WERE PRICED WITH AN INITIAL COUPON OF 881 AT A SLIGHT PREMIUM TO PAR TO YIELD ABOUT 300 BASIS POINTS ABOVE TREASURYS THE CERTIFICATES WITH AN AVERAGE LIFE OF 52 YEARS WERE RATED SINGLEA BY FITCH AND S&P THE 102 MILLION IN CLASS C CERTIFICATES WERE PRICED WITH AN INITIAL COUPON OF 881 AND ARE BEING OFFERED AT PAR THE CERTIFICATES WITH AN AVERAGE LIFE OF 53 YEARS WERE RATED TRIPLEB BY FITCH AND S&P THE PRIVATE CLASS D MEZZANINE CERTIFICATES WERE RATED SINGLEB BY BOTH AGENCIES THE CLASS E CERTIFICATES REPRESENT A FIRST LOSS TRANCHE MEANING ANY LOSSES SUFFERED BY THE LOANS IN THE POOL WILL BE BORNE BY INVESTORS IN THESE CERTIFICATES PRICING INFORMATION ON THE PRIVATE CLASSES WAS NOT DISCLOSED DAIWA SECURITIES IS A UNIT OF DAIWA AMERICA CORP DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT ONE BILLION MARKS OF 625 EUROBONDS DUE APRIL 8 1997 AT ISSUE PRICE 10160 VIA DEUTSCHE BANK AG YIELD 629 AFTER DEDUCTING FULL COMMISSIONS A MARGIN OF ABOUT 13 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT ISSUE GUARANTOR DEUTSCHE BANK AG FEES 175 POINTS EUROPEAN INVESTMENT BANK SUPRANATIONAL AGENCY 500 MILLION MARKS OF 625 EROBONDS DUE APRIL 7 2000 AT ISSUE PRICE 10175 VIA WESTDEUTSCHE LANDESBANK GIROZENTRALE YIELD 625 AFTER DEDUCTING FULL FEES MARGIN EIGHT BASIS POINTS ABOVE GERMAN GOVERNMENT'S 775 BONDS DUE FEBRUARY 2000 FEES 175 POINTS REPUBLIC OF AUSTRIA SOVEREIGN 400 MILLION MARKS OF REVERSE COUPON FLOATINGRATE EURONOTES AT AN ISSUE PRICE OF PAR VIA TRINKAUS & BURKHARDT KGAA INTEREST PAID AT 925 IN FIRST YEAR THEREAFTER INTEREST FLOATS AT 12125 MINUS THE SIXMONTH LIBOR FOR MARKS FEES 030 POINT DRESDNER BANK AG GERMAN 300 MILLION DUTCH GUILDERS OF 675 SUBORDINATED EUROBONDS DUE APRIL 1 2003 AT ISSUE PRICE 10105 VIA RABOBANK NV REOFFERED AT 10035 TO YIELD 670 ANNUALLY SPREAD 22 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT KNP BT ANTILLIANA NV NETHERLANDS PARENT 300 MILLION DUTCH GUILDERS OF 7 EUROBONDS DUE APRIL 15 2000 AT ISSUE PRICE OF 10070 VIA ABN AMRO BANK NV REOFFERED AT PAR TO YIELD 7 ANNUALLY SPREAD 55 BASIS POINTS ABOVE COMPARABLE DUTCH GOVERNMENT NOTE GUARANTOR NV KONINKLIKKE KNP BT FEES ONE POINT WORLD BANK SUPRANATIONAL AGENCY 250 MILLION CANADIAN DOLLARS OF 675 EUROBONDS DUE APRIL 16 1998 AT ISSUE PRICE 100025 VIA WOOD GUNDY INC AND MORGAN STANLEY INTERNATIONAL REOFFERED AT 9840 TO YIELD 714 ANNUALLY SPREAD 30 BASIS POINTS ABOVE 6 1/4 CANADIAN GOVERNMENT BOND DUE 1998 FEES 1875 POINTS CREDIT LOCAL DE FRANCE FRANCE 15 BILLION FRENCH FRANCS ZEROCOUPON EUROBONDS DUE APRIL 1 2003 VIA BANQUE NATIONALE DE PARIS REOFFERED AT A 4895 TO YIELD 741 MARGIN 19 BASIS POINTS ABOVE MIDPRICE YIELD ON FRENCH TREASURY'S STRIP DUE 2003 FEES 025 POINT ASAHI CHEMICAL INDUSTRY CO JAPAN 20 BILLION YEN OF 475 EUROBONDS DUE JULY 6 2000 AT ISSUE PRICE 10155 NOMURA INTERNATIONAL PLC REOFFERED AT 99975 TO YIELD 475 FEES 1875 CIBA GEIGY CORP SWITZERLAND PARENT 100 MILLION OF 7625 EURONOTES DUE MARCH 27 2000 AT ISSUE PRICE 101385 VIA UBS PHILLIPS & DREW REOFFERED AT 9986 TO YIELD 590 ANNUALLY SPREAD 30 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE GUARANTOR CIBA GEIGY LTD FEES 1875 BAYERISCHE VEREINSBANK AG GERMANY 100 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 7 2000 VIA MERRILL LYNCH INTERNATIONAL INTEREST PAID SEMIANNUALLY CALCULATED BY FOLLOWING FORMULA 10 YEAR CONSTANT MATURITY TREASURY CMT A FEDERAL RESERVE BANK REFERENCE RATE MULTIPLIED BY 50 PLUS 145 BASIS POINTS MINIMUM COUPON 5 MAXIMUM 28 ISSUE PRICE 99875 FEES 045 POINT BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 50 MILLION OF 850 EUROBONDS DUE FEB 26 2003 AT ISSUE PRICE 10505 VIA SG WARBURG SECURITIES LTD REOFFERED AT 10340 TO YIELD 798 MARGIN 29 BASIS POINTS ABOVE UK GOVERNMENT'S 8 BONDS DUE 2003 AT LAUNCH NOTES WILL TRADE INTERCHANGEABLY WITH 100 MILLION POUNDS OF IDENTICAL OUTSTANDING BONDS LAUNCHED IN LATE JANUARY AT ISSUE PRICE 10071 FEES 035 TOYO ENGINEERING CORP JAPAN 200 MILLION OF 1875 EUROBONDS DUE MARCH 25 1997 WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM APRIL 8 1993 TO MARCH 18 1997 TO BUY COMPANY SHARES AT EXPECTED PREMIUM OF 250 ABOVE CLOSING SHARE PRICE ON MARCH 16 WHEN FINAL TERMS FIXED GUARANTOR SAKURA BANK LTD FEES 225 POINTS NIHON KODEN CORP JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED 1 NOTES DUE MAR 25 1997 WITH EQUITYPURCHASE WARRANTS AT ISSUE PRICE PAR VIA YAMAICHI BANK SWITZERLAND EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISEABLE FROM APRIL 8 1993 TO MARCH 18 1997 TO BUY COMPANY SHARES AT A 250 PREMIUM ABOVE CLOSING SHARE PRICE ON MARCH 15 WHEN FINAL TERMS FIXED FEES 1625 SEIKITOKYU KOGYO CO LTD JAPAN 110 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MARCH 25 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1 COUPON AT PAR VIA SWISS VOLKSBANK EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISEABLE FROM APRIL 8 1993 TO MARCH 18 1997 TO BUY COMPANY SHARES FINAL TERMS ARE SET MARCH 11 FEES TOTAL 1625 POINTS 9303100046 930310 THE PEZ FANCY IS HARD TO EXPLAIN LET ALONE JUSTIFY DISPENSING WITH ALL FANFARE CANDY COMPANY PEZIDENT IS SHY ABOUT HIS PRODUCT BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL WHAT IS IT WITH PEZ IT IS JUST A CHEAP PLASTIC GIZMO THAT EJECTS CANDY BRICKS FROM THE HEADS OF GOOFY MISS PIGGY AND DUMBO AMONG OTHERS PEZ HASN'T BEEN ADVERTISED IN MORE THAN A DECADE A LOT OF PEOPLE SEEM TO THINK IT LONG AGO WENT THE WAY OF THE EDSEL ITS 1950S CONTEMPORARY BUT PEZ ISN'T JUST A NOSTALGIA THING LATELY IN FACT PEZ IS SIZZLING TWO YEARS AGO PEZ CANDY INC HAD TO DOUBLE THE SIZE OF ITS CONNECTICUT FACTORY NOW TWO FOOTBALLFIELDS BIG WITH 120 PEOPLE WORKING INSIDE SALES ARE SO STRONG THE COMPANY RECENTLY PUSHED ITS DISPENSER PRICE BEYOND THE BUCKBARRIER TO 129 IT SELLS 10PACK CANDY REFILLS FOR 139 COME SUMMER THERE WILL BE TWO NATIONAL CONFERENCES FOR PEZ COLLECTORS AND IN JUNE AUCTIONEERS AT CHRISTIE'S WILL HOLD A PEZCOLLECTION SALE INEXPLICABLY THE 41YEAROLD CONTRAPTION LOADED WITH STACKED CHALKY ARTIFICIALLY FLAVORED CANDY HAS BECOME A CULTURAL ICON IT'S A CANDY ADULTS LIKE TO INTRODUCE THEIR KIDS TO LIKE TEACHING THEM HOW TO EAT AN OREO SAYS PAT BARNES OWNER OF GOODIE GUMDROPS A CANDY STORE NEAR CLEVELAND THAT'S PART OF THE APPEAL ODDER STILL PEZ CANDY HAS DONE NOTHING TO WHIP UP SENTIMENTAL FERVOR PEZ'S 40TH ANNIVERSARY CAME AND WENT LAST YEAR UNOBSERVED OTHER COMPANIES GLADLY PAY FOR PRODUCT PLACEMENT IN MOVIES BUT PEZ WON'T YET PEZ OFTEN POPS UP SPONTANEOUSLY AS IT WERE IN MOVIES AND TV SHOWS FROM MURPHY BROWN TO JAY LENO'S TONIGHT SHOW AND SEINFELD WHICH GAVE A CAMEO TO A TWEETY BIRD PEZ BASED IN ORANGE CONN NEAR NEW HAVEN PEZ CANDY PURPOSELY AVOIDS ITS PAST THE VERY PRIVATELY HELD COMPANY IT WON'T SAY WHO ITS OWNERS ARE HAS NO ARCHIVIST TO ANSWER INQUIRIES FROM PEOPLE SEARCHING FOR PEZ DISPENSERS OF THEIR REVERIES THE LETTERS ARE OFTEN FORWARDED TO PEZ COLLECTORS DESPITE REQUESTS THERE ARE NO FACTORY TOURS FOR THE PUBLIC PEZ EXECUTIVES WON'T ATTEND PEZ FESTS COLLECTORS FEEL SNUBBED WITH SO TIGHTLIPPED A COMPANY THEY ARE HAUNTED BY PEZ MYSTERIES WHY FOR EXAMPLE DID CHERRY PEZ DISAPPEAR WHY DID THE MARY POPPINS PEZ BOMB ASKS COLLECTOR RICHARD GEARY A 36YEAROLD DISK JOCKEY IN OHIO WHY DID THEY MAKE A BULLWINKLE BUT NOT A ROCKY WHO MAKES THOSE DECISIONS THAT WOULD BE THE HEAD OF IT ALL SCOTT MCWHINNIE A 53YEAROLD HARVARDTRAINED MBA KNOWN FOR THE PAST DECADE AS THE PEZIDENT A SECRETIVE CEO WHO WEARS PINSTRIPED SUITS AND DRIVES A BLUE CADILLAC HE WON'T DWELL ON HISTORY WON'T DISCUSS THE COMPANY'S OWNERSHIP OR FINANCIAL DETAILS AND TRIES TO KEEP WORKSINPROGRESS CLOSE TO THE VEST SPEAKING OF WHICH HE WEARS A DIGNIFIED NAVY BLUE PEZTABLET TIE MR MCWHINNIE A FORMER KIDDIECEREAL PRODUCT MANAGER AT GENERAL MILLS INC AND A HARLEQUIN BOOKS MARKETING VICE PRESIDENT WILL SAY THIS OUR JOB IS TO CREATE THE COLLECTIBLES OF THE FUTURE THAT LEAVES PEZ HISTORY TO PEOPLE LIKE MARYANN KENNEDY A 60YEAROLD NURSE AND GRANDMOTHER IN MINNESOTA WITH FOUR FILE DRAWERS OF OLD PEZ ADS AND SALES LISTS SHE MAY BE THE PREEMINENT PEZ HISTORIAN AND SHE IS PEEVED AT PEZ IT'S VERY AGGRAVATING THAT THEY DON'T SHARE INFORMATION SHE SAYS IT SEEMS KIND OF SELFISH PEZ'S DEFINING MOMENTS IT SEEMS WERE FLUKES THE CANDY WAS INVENTED IN 1927 BY AUSTRIAN FOODCOMPANY MOGUL EDUARD HAAS TINKERING WITH PEPPERMINT OIL IN VIENNA ONE DAY MR HAAS ACCIDENTALLY CONCOCTED HIS RECIPE HE THEN CRAFTED TEENY BRICKS AND NAMED THEM PEZ ABBREVIATING THE GERMAN WORD FOR PEPPERMINT PFEFFERMINZ HE PUT PEZ IN RECTANGULAR DISPENSERS THE FIRST OF WHICH HAD NO FIGUREHEADS AN AVID ANTISMOKER MR HAAS SOLD PEZ IN EUROPE AS AN ADULT MINT A CIGARETTE SUBSTITUTE HE BROUGHT PEZ TO AMERICA IN 1952 WINNING US PATENT NO 2620061 WHICH TERMED HIS TREASURE A TABLET DISPENSING RECEPTACLE IN NO TIME FLAT PEZ FIZZLED SO HE RECAST THE DISPENSER AS A CHILDREN'S TOY WITH THE HEAD OF A CARTOON FIGURE ON TOP WHAT WAS THE VERY FIRST HEAD THERE HAS BEEN CONTROVERSY ABOUT THAT SAYS MRS KENNEDY THE PEZ WHIZ WHO THINKS BUT DOESN'T KNOW THAT IT WAS MICKEY MOUSE SOME SAY POPEYE THE CAST OF MORE THAN 200 COMINGANDGOING PEZ CHARACTERS IS A GALLERY OF AMERICAN POP CULTURE BATMAN SNOW WHITE THE CREATURE FROM THE BLACK LAGOON CHARLIE BROWN UNCLE SAM BUGS BUNNY YOU NAME IT LAST YEAR ABOUT 40 DIFFERENT DISPENSERS AND CANDY REFILLS AMOUNTED TO 18 MILLION IN RETAIL SALES ACCORDING TO INFORMATION RESOURCES INC A RESEARCH COMPANY TO KEEP TRACK OF ALL THE MODELS THE PLASTIC CANDY DISPENSER NEWSLETTER BEGAN PUBLICATION LAST YEAR AFTER THREE ISSUES THE 18AYEAR BIMONTHLY HAS 233 SUBSCRIBERS PRINTS CORRESPONDENCE BETWEEN PEZ PALS AND REPORTS THE GOING RATES FOR RARE PEZ A GREENHAIRED WONDER WOMAN RECENTLY FETCHED 242 IT IS HARD TO FIGURE PEZ'S LASTING APPEAL PRESSED ONE SOCIAL SCIENTIST SPECULATES THAT PEZ IS ONE OF THE FEW THINGS IN LIFE THAT MELD TWIN DELIGHTS OF CHILDHOOD TOYS AND CANDY IT'S A WAY TO KEEP IN TOUCH WITH YOUTH OFFERS ALEX MCINTOSH A TEXAS A&M UNIVERSITY SOCIOLOGIST FROM THE OUTSIDE PEZ CANDY LOOKS LIKE ANY OTHER COMPANY EXCEPT FOR THE BUSHES OUT FRONT PRUNED INTO A P AN E AND A Z INSIDE PEZ PRODUCTION STARTS WITH TWO GIGANTIC YELLOW SILOS EACH HOLDING 30000 POUNDS OF SUGAR IN LARGE TUBES THE SUGAR IS BLENDED WITH PALM OILS AND ARTIFICIAL FLAVORS EXCEPT FOR ORANGE WHICH IS NATURAL AND COLORS LIKE YELLOW 6 AS GRINDING MACHINERY THUNDERS THE REFINED POWDER IS RAPIDLY PUNCHED INTO PEZ BRICKS AND PACKAGED VISITORS ARE RARE ALTHOUGH TWO RABBIS WERE RECENTLY IN THE PLANT MONITORING PRODUCTION OF THE FIRST KOSHER PEZ THE DISPENSERS ARE MADE OVERSEAS WHICH CUTS COSTS BUT ADDS QUALITYCONTROL PROBLEMS COMPLEXION PROBLEMS IN THE CASE OF FLINTSTONES CHARACTERS FRED PEBBLES AND BARNEY RUBBLE MADE VARIOUSLY IN CHINA HUNGARY AND SLOVENIA THE REAL STRESS INVOLVES PEZ HEADHUNTING PEZ CANDY GETS HUNDREDS OF REQUESTS THERE WAS A GROUNDSWELL OF DEMAND SOME YEARS BACK FOR AN EVEL KNIEVEL PEZ CURRENT LOBBYING IS FOR ELVIS PRESLEY AND MICHAEL JACKSON I HAD ALL KINDS OF PRESSURE TO DO ALF SAYS MR MCWHINNIE BUT WITH A COSTLY DESIGN PROCESS THAT TAKES A FULL YEAR AND WITH LICENSING AGREEMENTS AND PERMISSIONS TO BE HAMMERED OUT HE WAITS TO BE SURE A CARTOON CHARACTER ISN'T JUST A PASSING FAD AND HE SHUNS DEPICTIONS OF REAL PEOPLE MOST ESPECIALLY LIVING ONES THEY DON'T HAVE INTERESTING HEADS MR MCWHINNIE SAYS AND THEY CAN GET INTO MESSY SCANDALS UNBECOMING TO A CHILD'S TOY HE ALSO TRIES TO AVOID PEZ BLOOPERS THE ANNIE PEZ RUSHED OUT AS A TIEIN FLOPPED RIGHT ALONG WITH THE MOVIE THEN THERE WAS THE CHERRY PEZ PROBLEM IN THE EARLY '80S PEZ DROPPED CHERRY IN FAVOR OF GRAPE THEN CAME STAND BY ME A NOSTALGIC MOVIE IN WHICH A YOUNGSTER SAYS IF I COULD HAVE ONLY ONE FOOD TO EAT FOR THE REST OF MY LIFE THAT'S EASY PEZ CHERRY FLAVOR PEZ PEZ CANDY WAS THEN BESET WITH DEMAND IT CHOSE NOT TO MEET DON'T ASK WHY SOME PEOPLE WILL DO JUST ABOUT ANYTHING TO GET THEIR PAWS ON PEZ TWO YEARS AGO SOMEBODY RAN AN AD IN THE NEW HAVEN REGISTER PROMISING TO PAY BIG MONEY FOR OLD PEZ OVERNIGHT DOZENS OF RARE MODELS VANISHED FROM PEZ CANDY HEADQUARTERS ON ANOTHER OCCASION PEZIDENT MCWHINNIE DASHED OFF A CEASE AND DESIST LETTER AFTER SPOTTING DISPLAYSTANDS FOR PEZ COLLECTIONS THAT USED THE PEZ NAME WITHOUT PERMISSION THE RECIPIENT SOLD THE LETTER AS A PEZ COLLECTOR'S ITEM 9303100045 930310 MARKETING & MEDIA ADVERTISING SAATCHI ATONES FOR BUYING BINGE WITH WRITEOFFS AND HUGE LOSS BY KEVIN GOLDMAN SAATCHI & SAATCHI POSTED A PRETAX LOSS OF A DAUNTING 5951 MILLION 8584 MILLION FOR 1992 RACKING UP WHAT IS BELIEVED TO BE THE LARGEST LOSS EVER RECORDED FOR AN ADAGENCY COMPANY THE LOSS WAS CAUSED BY MASSIVE WRITEOFFS FOR OVERPAYING WHILE ON AN AGENCY ACQUISITION BINGE IN THE LATTER HALF OF THE 1980S THE WORLD'S SECONDLARGEST AGENCY GROUP TOOK A WRITEOFF OF 600 MILLION MOST OF WHICH ACCOUNTS FOR THE TOORICH PRICE OF ABOUT 350 MILLION THAT IT PAID FOR TED BATES WORLDWIDE IN 1986 MAURICE SAATCHI THE COMPANY'S CHAIRMAN SAID IN A STATEMENT THAT SAATCHI'S 1992 PERFORMANCE EXCLUDING THE CHARGE REFLECTED A MORE STABLE ADVERTISING MARKET BUT HE SAID THE COMPANY ISN'T FORECASTING ANY REVENUE GROWTH THIS YEAR SAATCHI'S EFFORTS HE SAID WILL CONTINUE TO FOCUS ON IMPROVING OPERATING MARGINS AND PROFITABILITY THAT IS A PESSIMISTIC OUTLOOK CONSIDERING OTHERS ALONG MADISON AVENUE HAVE ROSY FORECASTS FOR THE ADVERTISING BUSINESS STILL SAATCHI IS CONFIDENT THAT THE SIZE OF THE 1992 FINANCIAL BLOW WON'T UNNERVE SOME CLIENTS THE HUGE WRITEDOWN REQUIRED BY A CHANGE IN BRITISH ACCOUNTING RULES AMOUNTS TO AN ONPAPER ADJUSTMENT THAT DOESN'T HURT SAATCHI'S REAL CASH POSITION BUT IT DOES AMOUNT TO AN UNPLEASANT REPUDIATION OF SORTS FOR THE EXPANSION AND DIVERSIFICATION STRATEGY THAT GATHERED UP AD SHOPS CONSULTING FIRMS AND OTHER OPERATIONS IN THE ACQUISITIVE '80S THROUGHOUT THE LAST DECADE THE COMPANY FOUNDED IN 1970 IN A SEEDY AREA IN CENTRAL LONDON BY TWO BROTHERS IN THEIR TWENTIES SPENT OVER 1 BILLION AMONG ITS PURCHASES WERE TED BATES WORLDWIDE MCCAFFREY & MCCALL WHICH BOUGHT ITSELF BACK IN 1990 FOR LESS THAN SAATCHI HAD PAID FOR IT AND TWO AGENCIES COMPTON AND DANCER FITZGERALD SAMPLE WHICH WERE MERGED INTO SAATCHI & SAATCHI ADVERTISING SAATCHI DIDN'T STOP AT AD AGENCIES IN ITS QUEST TO BE THE BIGGEST WORLDWIDE AD COMPANY A SAATCHI DIRECTOR SAID IN 1986 BULK IS IMPORTANT THE COMPANY ACQUIRED A MARKET RESEARCH FIRM YANKELOVICH SKELLY & WHITE IN 1984 SAATCHI SEEMED TO BE IN A BREATHLESS RACE WITH RIVAL WPP GROUP SPENDING AND GRABBING ACQUISITIONS IN ORDER TO BE THE LARGEST AD GROUP SAATCHI'S CHARGE YESTERDAY REPRESENTED WRITEDOWNS OF GOODWILL THE AMOUNT BY WHICH SAATCHI'S PURCHASE PRICES EXCEEDED THE ONTHEBOOKS VALUE OF THE VARIOUS COMPANIES IT ACQUIRED SAATCHI HAD PREVIOUSLY SET ASIDE A TOTAL ALLOTMENT OF SOME 8365 MILLION REPRESENTING GOODWILL AND NOW HAS SUMMARILY SWALLOWED OVER 70 OF THAT AMOUNT AS A DECLARED CHARGE AGAINST EARNINGS SAATCHI EXECUTIVES HOWEVER EMPHASIZE THAT THE MOVE WON'T HAVE AN IMPACT ON THE COMPANY'S ACTUAL CASH FLOW IN FACT ROBERT LOUISDREYFUS SAATCHI'S CHIEF EXECUTIVE WHO IS SCHEDULED TO RETIRE AT THE END OF THE MONTH HAD URGED THE COMPANY TO WRITE DOWN THE FULL 8365 MILLION THAT WAY HE SAID IN AN INTERVIEW YESTERDAY MY SUCCESSOR CHARLES SCOTT COULD START WITH A CLEAN SLATE BUT FOR REASONS HE WOULDN'T SPECIFY SAATCHI DIRECTORS DECLINED IN SOMEWHAT OF AN UNDERSTATEMENT AND A FITTING EPITAPH TO THE FREEWHEELING 1980S MR LOUISDREYFUS ADDED IT'S QUITE CLEAR SAATCHI PAID TOO MUCH FOR TED BATES BUT EVERYTHING IS CLEARER IN HINDSIGHT AD AGENCIES REVENUES WERE GROWING THEN BY 10 HE SAID MR LOUISDREYFUS JOINED SAATCHI AFTER THE ACQUISITION BINGE HAD LARGELY ENDED IN 1990 TO RESCUE IT FROM AN INCREASING DEBT BURDEN MOST OF THE PURCHASES WERE OVERSEEN BY MAURICE SAATCHI THE COMPANY'S CHAIRMAN AND HIS BROTHER CHARLES THE COMPANY'S DIRECTOR IN THE PAST AN ACQUIRING COMPANY IN BRITAIN ACCOUNTED FOR THE DIFFERENCE BETWEEN THE PRICE IT PAID AND THE ACQUIRED COMPANY'S ASSET VALUE AS STATED ON THE BOOKS BY ESTABLISHING A GOODWILL RESERVE UNDER THE NEW ACCOUNTING RULES HOWEVER COMPANIES NOW MUST WRITE OFF SOME PORTION OF THE GOODWILL AGAINST THEIR PROFIT AND LOSS STATEMENTS AFTER THE CHARGE AND OTHER ADJUSTMENTS SAATCHI & SAATCHI POSTED A NET LOSS OF 6137 MILLION FOR 1992 COMPARED WITH A RESTATED LOSS OF 67 MILLION A YEAR EARLIER ANALYSTS HAD FORECAST A PRETAX PROFIT EXCLUDING THE CHARGE AND OTHER ADJUSTMENTS OF ABOUT 16 MILLION AND THE COMPANY ENDED UP REPORTING A SIGNIFICANTLY BETTER 348 MILLION UP FROM 205 MILLION THE YEAR BEFORE REVENUE OF 7399 MILLION WAS VIRTUALLY FLAT WITH 1991'S 7398 MILLION WALL STREET WASN'T DISPLEASED THE NOISE YOU JUST HEARD IS THE SCRAPING OF THE BOTTOM OF THE BARREL SAYS ALAN GOTTESMAN AN ANALYST WITH PAINEWEBBER THINGS AREN'T GOING TO SUDDENLY GET WORSE FOR THEM AGAIN THE AD BUSINESS IS PICKING UP EVEN AS WE SPEAK ALISON FOLINO AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO SAYS SHE IS ENCOURAGED BY THE MODEST GROWTH THE COMPANY SHOWED IN NEW YORK STOCK EXCHANGE TRADING SAATCHI'S AMERICAN DEPOSITARY RECEIPTS WERE UNCHANGED AT 8125 THE RESULTS DIDN'T SEEM TO UNNERVE TOYOTA A BIG SAATCHI CLIENT A SPOKESWOMAN DECLINED TO COMMENT SPECIFICALLY ON SAATCHI'S RESULTS SAYING WE HAVE A FINE RELATIONSHIP WITH SAATCHI THEY'VE BEEN OUR AGENCY FOR A LONG TIME SHE ADDED WE DON'T FORESEE A CHANGE WITH SAATCHI WHILE SAATCHI'S THREE US AD AGENCIES HAVE STABILIZED THEY HAVEN'T SNARED MAJOR NEW BUSINESS RECENTLY ONLY BACKER SPIELVOGEL BATES THE PRODUCT OF THE 1987 MERGER BETWEEN BACKER & SPIELVOGEL AND TED BATES WORDWIDE CAN BOAST OF A MAJOR NEW ACCOUNT TRANS WORLD AIRLINES MR LOUISDREYFUS WHO WILL NOW TRY TO TURN AROUND THE FORTUNES OF ADIDAS AG SAYS HE IS PRETTY COMFORTABLE WITH THE WAY HE IS LEAVING SAATCHI FOR HIS SUCCESSOR MR SCOTT I DIDN'T ACHIEVE EVERYTHING I SET OUT TO DO HE SAYS HE IS EXITING HE SAYS BEFORE THE UPTURN IN ADVERTISING I SEE A PICKUP IN THE BUSINESS SAYS MR LOUISDREYFUS UNFORTUNATELY IT WON'T COME UNTIL THE SECOND HALF OF THE YEAR AFTER I'M GONE IBM PENNANT SYSTEMS NORWALK CONN A UNIT OF INTERNATIONAL BUSINESS MACHINES HIRED NEW YORK AGENCY KOREY KAY & PARTNERS FOR A NEW ESTIMATED 5 MILLION ACCOUNT PENNANT WHICH MAKES COMPUTER PRINTERS AND SOFTWARE IS AMONG THE FIRST OF IBM'S SOCALLED BABY BLUE OPERATING UNITS TO HIRE AN AD AGENCY SEPARATE FROM IBM'S ROSTER OF WELLS RICH GREENE BDDP AND INTERPUBLIC GROUP'S LINTAS COMPUTER ACCOUNT COMPUTER CITY BASED IN FORT WORTH TEXAS TAPPED THE RICHARDS GROUP DALLAS FOR AN ESTIMATED 10 MILLION IN BROADCAST MEDIA BUYING THE RETAIL CHAIN CONTINUES TO HANDLE THE CREATIVE PORTION IN HOUSE COMPUTER CITY IS A UNIT OF TANDY CORP ACCOUNT OVERSEAS THE NEW ZEALAND OPERATIONS OF D'ARCY MASIUS BENTON & BOWLES WON CLEAR COMMUNICATIONS LTD'S AD ACCOUNT ESTIMATED AT 25 MILLION INTERPUBLIC GROUP'S MCCANNERICKSON PREVIOUSLY HANDLED THE AUCKLAND TELEPHONESERVICE COMPANY A JOINT VENTURE OF BCE INC'S BELL CANADA MCI COMMUNICATIONS AND SEVERAL NEW ZEALAND INTERESTS WHO'S NEWS JOHN BLAUNER EXECUTIVE CREATIVE DIRECTOR AND SENIOR VICE PRESIDENT AT FCB DIRECT NEW YORK WAS ELECTED AN EXECUTIVE VICE PRESIDENT FCB DIRECT WHOSE CLIENTS INCLUDE RJ REYNOLDS AT&T AND CITICORP'S CITIBANK IS A UNIT OF FOOTE CONE & BELDING COMMUNICATIONS CHICAGO 9303100044 930310 WHAT'S NEWS BUSINESS AND FINANCE DRUG INDUSTRY OFFICIALS SAID THEY MADE SEVERAL CONCESSIONS IN AN UNPUBLICIZED MEETING WITH TOP WHITE HOUSE STAFFERS MONDAY THE DRUG EXECUTIVES AGREED FOR THE FIRST TIME TO GO ALONG WITH NEW LAWS THAT WOULD MONITOR AND ENFORCE VOLUNTARY CONTROLS ON PRESCRIPTION DRUG PRICES AN ECONOMICSTIMULUS BILL OF NEARLY 163 BILLION CLEARED THE HOUSE APPROPRIATIONS PANEL BUT THE IMPROVING ECONOMY HAS MADE SOME DEMOCRATS WARY OF THE NEW SPENDING IN THE FACE OF DEMANDS FOR TAX INCREASES HOUSE AND SENATE DEMOCRATS ARE DRAWING UP PLANS FOR SPENDING CUTS BUT THEY MAY YET STUMBLE OVER CLINTON'S CHALLENGE THAT CRITICS OF HIS ECONOMIC PLAN SHOULD BE SPECIFIC PRIMERICA SHARES SURGED 12 IN REACTION TO ITS BID TO BUY THE BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS FROM AMERICAN EXPRESS INSIDERS BELIEVE THE LEHMAN BROTHERS SUBSIDIARY WILL EVENTUALLY BREAK AWAY FROM PARENT AMERICAN EXPRESS STOCKS ENDED MIXED BUT THE DOW JONES INDUSTRIALS EDGED UP TO ITS SECOND CONSECUTIVE RECORD WITH A GAIN OF 270 TO 347212 BOND PRICES FELL AND THE DOLLAR ROSE GOLD FUTURES CONTINUED SKIDDING TOWARD SEVENYEAR LOWS US COMMERCIAL BANKS EARNED 82 BILLION IN THE FOURTH QUARTER AND A RECORD 3225 BILLION IN 1992 ALTHOUGH LENDING DECLINED THE FDIC REPORTED SHONEY'S SIGNED A LETTER OF INTENT TO BUY BACK ALL THE HOLDINGS OF ITS LARGEST SINGLE SHAREHOLDER COMPANY FOUNDER RAYMOND L DANNER IN A TRANSACTION VALUED AT MORE THAN 107 MILLION NORTHROP PLANS TO CUT AN ADDITIONAL 2400 JOBS IN 1993 WITH MORE CUTS TO FOLLOW IN 1994 BECAUSE OF SLOWDOWNS IN MILITARY AND COMMERCIAL AIRCRAFT PROGRAMS AND THE NEED TO CUT COSTS US UNIT LABOR COSTS FELL IN THE FOURTH QUARTER FOR THE FIRST TIME IN MORE THAN FOUR YEARS THE DROP AT A 04 ANNUAL RATE SIGNALS INFLATIONARY PRESSURES ARE WELL UNDER CONTROL HJ HEINZ BACKED OFF ITS PREVIOUS YEAREND FORECAST OF 260 A SHARE CITING ADVERSE FOREIGN CURRENCY CHANGES AND WEATHERRELATED ATTENDANCE PROBLEMS AT WEIGHT WATCHERS MEETINGS WARNERLAMBERT IS LAUNCHING ITS THIRD ATTEMPT IN TWO YEARS TO RECEIVE APPROVAL FROM THE FDA FOR ITS ALZHEIMER'S DISEASE DRUG COGNEX GERMAN CHEMICAL CONCERNS BASF AND HOECHST PARED THEIR DIVIDENDS AND POSTED STEEP EARNINGS DECLINES THE COMPANIES HAVE FACED A WEAK ECONOMY AND HEAVY PRICE COMPETITION SAATCHI & SAATCHI POSTED A PRETAX LOSS OF 8584 MILLION FOR 1992 WHICH IS BELIEVED TO BE THE LARGEST LOSS EVER RECORDED FOR AN ADAGENCY COMPANY TOKYO STOCKS ADDED TO MONDAY'S 52 GAIN WITH THE NIKKEI CLIMBING ANOTHER 16183 POINTS TO 1784830 VOLUME WAS THE HEAVIEST IN 18 MONTHS CLARK CLIFFORD AND ROBERT ALTMAN MAY FACE AN EXPANDED FEDERAL INDICTMENT IN THE BCCI CASE BECAUSE OF NEW EVIDENCE FROM AN UNIDENTIFIED WITNESS WHO RECENTLY ARRIVED IN THE USSPS BONDS LEHMAN BROTHERS TREASURY INDEX 508149 OFF 1839 COMMODITIES OIL 2068 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12896 UP 081 SPOT INDEX 12392 UP 038 DOLLAR 11775 YEN UP 100 16670 MARKS UP 00035 9303100043 930310 CORPORATE FOCUS RTZ'S KENNECOTT BALANCES ITS MINING ACT WITH COAL ACQUISITIONS OFFSET RELIANCE ON COPPER AFTER SUCCESSFUL RISE IN PRODUCTIVITY BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL SALT LAKE CITY KENNECOTT CORP'S 64YEAROLD PRESIDENT G FRANK JOKLIK RECENTLY INAUGURATED THIS TOWN'S NEW 18METER SKI JUMP RACING DOWN THE RAMP SAILING INTO THE AIR AND NAILING A FLAWLESS LANDING THE SECRET TO HIS SUCCESSFUL FIRSTEVER JUMP KEEP YOUR HEAD UP AND KEEP YOUR BALANCE WHEN YOU LAND HE SAYS IF THERE WERE A PERFECT PLACE TO LEARN THOSE SKILLS IT WOULD HAVE TO BE KENNECOTT SINCE MR JOKLIK TOOK OVER MANAGEMENT OF THE COMPANY IN 1980 THE COMPANY HAS STRUGGLED TO KEEP ITS HEAD ABOVE WATER AND KEEP ITS BALANCE WHEN IT FELL AS WITH HIS OLYMPICSTYLE SKI JUMP MR JOKLIK LANDED ON HIS FEET AT KENNECOTT TURNING ONE OF THE NATION'S MOST TROUBLED MINING COMPANIES INTO A PROFITABLE AND GROWING ONE NOW AS MR JOKLIK PREPARES TO RETIRE IN MAY HE'S HANDING OVER TO HIS SUCCESSOR WHO STILL HASN'T BEEN NAMED A WHOLE NEW SET OF CHALLENGES IN RECENT WEEKS KENNECOTT AND ITS PARENT RTZ CORP OF LONDON HAVE AGREED TO BUY TWO COAL COMPANIES WHICH COMBINED WILL BE THE NATION'S FIFTH LARGEST COAL PRODUCER AND KENNECOTT RECENTLY STARTED CONSTRUCTION OF A 880 MILLION COPPER SMELTER RTZ AND KENNECOTT BEGAN CONSIDERING A COAL PURCHASE ABOUT THREE YEARS AGO WE WERE EXTREMELY AWARE THAT WE WERE BECOMING AN AIRPLANE WITH ONE WING SAYS MR JOKLIK REFERRING TO THE COMPANY'S DEPENDENCE ON COPPER WE WANTED ANOTHER MAJOR COMMODITY WHAT TRANSPIRED WAS A DEAL TO BUY NERCO INC AND CORDERO MINING CO TWO LOWCOST POWDER RIVER BASIN WYOMING COAL PRODUCERS FOR ABOUT 590 MILLION PLUS THE ASSUMPTION OF NEARLY 700 MILLION IN DEBT ABOUT 225 MILLION WILL BE FINANCED THROUGH A PRODUCTION CONTRACT WITH PACIFICORP HOLDINGS INC WHICH HELD 82 OF NERCO SOME MONEY WILL BE RAISED BY THE SALE OF NERCO'S OIL AND GAS OPERATIONS AND OTHER MINERAL PROPERTIES BUT DELVING INTO THE COAL BUSINESS HARKENS BACK TO KENNECOTT'S DIFFICULT PAST IN 1968 THE COMPANY BOUGHT PEABODY COAL THE LARGEST COAL PRODUCER IN THE US KENNECOTT DIDN'T REALIZE AT THE TIME PEABODY WAS PURCHASED THAT THE COMPANY HAD NO LONGTERM COAL CONTRACTS TO SPEAK OF EVEN THOUGH LONGTERM CONTRACTS ARE ESSENTIAL TO MAINTAINING PROFITS WHEN SPOT PRICES DIP FURTHER KENNECOTT TOOK A HANDSOFF APPROACH TO MANAGING THE COMPANY EVEN THOUGH PEABODY MANAGEMENT WAS WEAK FINALLY AFTER A NINEYEAR BATTLE WITH THE FEDERAL TRADE COMMISSION OVER ANTITRUST QUESTIONS IT WAS A CASE OF THE NATION'S LARGEST COPPER COMPANY BUYING THE LARGEST COAL COMPANY THE DISASTROUS OWNERSHIP CAME TO AN END PEABODY WAS SOLD FOR LESS THAN KENNECOTT HAD PAID FOR IT THIS TIME KENNECOTT IS NOT MAKING THE SAME MISTAKES IN ITS COAL ACQUISITION MR JOKLIK SAYS KENNECOTT WILL NOT ACCEPT NERCO AND CORDERO MANAGEMENT WITHOUT SCRUTINY HE SAYS AND UNLIKE CARBORUNDUM'S COMPLEX BUSINESSES THE POWDER RIVER COAL BUSINESS IS FAIRLY SIMPLE HE SAYS FURTHER THE COMPANIES HAVE GOOD LONGTERM CONTRACTS AND LOW COSTS ANALYSTS WHO FOLLOW RTZ ARE LARGELY OPTIMISTIC ABOUT THE ACQUISITIONS RTZ HAS AN EXCELLENT RECORD OF ACQUISITIONS EVEN IF KENNECOTT DOESN'T SAYS ROB DAVIES ANALYST FOR SHEARSON LEHMAN BROS INC IN LONDON HE ALSO BELIEVES RTZ WILL BENEFIT FROM THE CASH FLOW GENERATED BY COAL WHICH THE COMPANY CAN MINE FOR 4 TO 5 A TON AND SELL FOR 12 A TON HE SAYS ALTHOUGH THE ULTIMATE OWNERSHIP OF THE NERCO AND CORDERO RESERVES WILL BE IN BRITISH HANDS DECISIONS ON OPERATIONS AND MARKETS WILL STILL BE MADE IN THE US SAYS ROBERT WILSON RTZ'S CHIEF EXECUTIVE THE OPERATING MANAGEMENT IS VERY MUCH KENNECOTT'S RESPONSIBILITY HE SAYS WE DON'T CALL THE SHOTS FROM HERE MR JOKLIK AGREES OVER THE LAST 13 YEARS THERE HASN'T BEEN A SINGLE DECISION INITIATED BY OUR OWNERS HE SAYS WE PADDLE OUR OWN CANOE HERE THIRTEEN YEARS AGO MR JOKLIK'S CANOE WASN'T MUCH FUN TO PADDLE WEIGHTED DOWN AS IT WAS WITH A DEMORALIZED AND UNPRODUCTIVE LABOR FORCE AND ANTIQUATED AND INEFFICIENT FACILITIES ITS FINANCIAL RESOURCES WERE DEPLETED BY DISASTROUS ACQUISITIONS ITS MINERS HAMPERED BY MALAISE AND INTRICATE WORK RULES WERE WORKING ONLY A FEW MINUTES OUT OF AN HOUR ORE WAS STILL BEING HAULED OUT OF THE MINE BY RAIL A CLUMSY PROCESS ABANDONED BY OTHER MINES SOME OF THE MINE'S EQUIPMENT HAD BEEN USED IN BUILDING THE PANAMA CANAL IN 1904 MANAGEMENT WAS SO LAYERED THAT WHEN MR JOKLIK ASKED A QUESTION ABOUT AN OPERATION IT WOULD BE ANSWERED WITH SEVEN COVER MEMOS FROM SUCCESSIVE MANAGERS I FELT LIKE I'D BEEN APPOINTED THE CAPTAIN OF THE TITANIC MR JOKLIK SAYS BUT I KNEW WHAT I WAS UP AGAINST HE LAID OUT A THREEPRONG PLAN CUT COSTS IN LABOR MANAGEMENT AND MATERIALS UPGRADE FACILITIES AND DIVERSIFY INTO OTHER MINING VENTURES THAT WOULD REDUCE THE COMPANY'S DEPENDENCE ON COPPER AT THAT TIME IT TOOK 7000 WORKERS AT THE COMPANY'S BINGHAM CANYON MINE IN UTAH TO PRODUCE 200000 TONS OF COPPER ORE A YEAR OVER THE NEXT FOUR YEARS THE LABOR FORCE WAS CUT TO 4300 THE RAILS IN THE PIT WERE PULLED AND TRUCKS BEGAN HAULING ORE MANAGERS LEFT IN DROVES UNABLE TO ACCEPT THE NEW ETHIC THE ONES WHO REMAINED UNDERSTOOD WHAT WAS REQUIRED HE SAYS BUT ALL THAT HAD BEEN WRENCHED FROM LABOR REDUCTIONS AND CAPITAL INVESTMENTS WAS QUICKLY WASHED OUT BY SLIDING COPPER PRICES WHICH FELL FROM 1 A POUND TO 60 CENTS A POUND OVER THE SAME FOUR YEARS AND STANDARD OIL CO OF OHIO WHICH BOUGHT KENNECOTT IN 1981 REFUSED TO SPEND THE MONEY MR JOKLIK WANTED TO UPGRADE ITS MILLS FINALLY IN 1985 THE COMPANY CLOSED THE MINE IN 1986 THE COMPANY AND ITS DOZEN UNIONS CAME TO A NEW AGREEMENT THAT CUT LABOR COSTS 35 AND THE MINE REOPENED IN RETURN BRITISH PETROLEUM WHICH HAD BOUGHT STANDARD OIL OF OHIO BY THEN AGREED TO GIVE KENNECOTT MANAGERS THE 400 MILLION THEY WANTED FOR NEW MILLS AND CONCENTRATORS TODAY AFTER 650 MILLION IN CAPITAL IMPROVEMENTS BINGHAM CANYON IS THE LOWESTCOST COPPER MINE IN NORTH AMERICA AND ONE OF THE LOWESTCOST MINES IN THE WORLD NOW ONLY 2400 WORKERS PULL 310000 TONS OF ORE FROM THE HALFMINE DEEP HOLE NEAR SALT LAKE CITY EACH YEAR A NEARLY FIVEFOLD INCREASE IN PRODUCTIVITY FROM 1980 THE NEW SMELTER WILL FURTHER BOOST PRODUCTIVITY LOWER COSTS AND REDUCE POLLUTION WHEN IT IS COMPLETED NEXT YEAR THE COMPANY PROMISES WHEN WE CAME IN IN 1989 THE HARDEST PART OF THE JOB HAD BEEN DONE SAYS MR WILSON OF RTZ BUT ONCE WE'VE FINISHED THIS PROGRAM WITH THE SMELTER THEN I THINK WE'RE GOING TO HAVE FACILITIES NEXT TO NONE 9303100042 930310 BUSINESS BRIEF SHELL CANADA LTD PROCESSING OF NATURAL GAS FROM CAROLINE FIELD BEGINS SHELL CANADA LTD SAID IT STARTED PROCESSING NATURAL GAS FROM ITS 72OWNED CAROLINE FIELD IN ALBERTA THE FIELD HAS BEEN UNDER DEVELOPMENT SINCE OCTOBER 1990 AT A COST OF ONE BILLION CANADIAN DOLLARS US8045 MILLION SHELL CANADA CALGARY ALBERTA SAID THE PLANT WILL PROCESS 300 MILLION CUBIC FEET OF RAW NATURAL GAS A DAY FROM THIS IT WILL PRODUCE DAILY 18000 BARRELS OF CONDENSATE 26400 BARRELS OF NATURAL GAS LIQUIDS 4400 TONS OF SULPHUR AND 100 MILLION CUBIC FEET OF PROCESSED NATURAL GAS SHELL CANADA SAID THE PLANT WILL BEGIN OPERATING AT FULL CAPACITY LATER THIS SPRING SHELL CANADA IS AN OIL AND GAS PRODUCER THAT IS 78 OWNED BY ROYAL DUTCH/SHELL GROUP 9303100041 930310 WHO'S NEWS REED ELSEVIER PLC REED ELSEVIER PLC LONDON THIS PUBLISHING COMPANY SAID THE PRESIDENT OF CAHNERS PUBLISHING CO TERRENCE M MCDERMOTT 50 YEARS OLD IS ON A LEAVE OF ABSENCE WHILE HE CONSIDERS HIS FUTURE PLANS CAHNERS IS A DIVISION OF REED PUBLISHING USA INC ITSELF A UNIT OF REED ELSEVIER ROBERT L KRAKOFF 57 WAS NAMED ACTING PRESIDENT OF CAHNERS NEWTON MASS MR KRAKOFF IS CHAIRMAN AND CHIEF EXECUTIVE OF REED PUBLISHING USA INC 9303100040 930310 COLUMBIA GAS SEEKS EXTENSION WILMINGTON DEL COLUMBIA GAS SYSTEM INC AND ITS MAIN SUBSIDIARY SAID THEY ASKED A BANKRUPTCY COURT TO EXTEND TO JULY 23 THE PERIOD DURING WHICH THEY CAN EXCLUSIVELY FILE CHAPTER 11 PLANS OF REORGANIZATION COLUMBIA GAS SYSTEM AND ITS COLUMBIA GAS TRANSMISSION CORP SUBSIDIARY SAID THEY ALSO REQUESTED THE US BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE FOR AN INTERIM EXTENSION FROM MARCH 25 THE DATE THE CURRENT EXCLUSIVITY PERIOD WILL EXPIRE UNTIL APRIL 2 THE DATE OF THE COURT'S NEXT SCHEDULED HEARING ON COLUMBIA THE TWO COMPANIES HAVE BEEN UNDER CHAPTER 11 BANKRUPTCYCOURT PROTECTION SINCE JULY 31 1991 THE BANKRUPTCY COURT HAS GRANTED FOUR PREVIOUS REQUESTS BY THE COMPANIES TO EXTEND EXCLUSIVITY 9303100039 930310 GREYHOUND'S TRAFFIC DROPS 69 DALLAS GREYHOUND LINES INC SAID ITS PASSENGER TRAFFIC FELL 69 IN JANUARY TO 4456 MILLION REVENUE PASSENGER MILES FROM 4786 MILLION IN JANUARY 1992 A REVENUE PASSENGER MILE IS ONE PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO REPORTED THAT IT FILLED 515 OF ITS AVAILABLE SEATS DOWN ABOUT 24 FROM THE 528 LOAD FACTOR REPORTED A YEAR EARLIER 9303100038 930310 SEC ALLEGES SOUTHWEST INTERNATIONAL 2 PEOPLE DEFRAUDED INVESTORS LOS ANGELES THE SECURITIES AND EXCHANGE COMMISSION CHARGED SOUTHWEST INTERNATIONAL EXCHANGE AND TWO INDIVIDUALS WITH DEFRAUDING HUNDREDS OF INVESTORS OUT OF AN ESTIMATED 78 MILLION IN AN ALLEGED FOREIGN CURRENCY TRADING SCHEME WILLIAM L TELANDER OF YOUNTVILLE CALIF AND ROGER C BRIGGS OF HUNTINGTON BEACH CALIF WERE CHARGED WITH VARIOUS VIOLATIONS OF FEDERAL SECURITIES LAWS IN A COMPLAINT FILED FRIDAY IN FEDERAL COURT HERE MR BRIGGS 57 YEARS OLD AGREED TO SETTLE THE CHARGES BY CONSENTING TO A JUDGMENT PERMANENTLY ENJOINING HIM FROM VIOLATING CERTAIN SECURITIES LAWS THE SEC SAID HE ALSO AGREED TO RETURN INVESTORS' FUNDS AND TO PAY CIVIL PENALTIES IN AMOUNTS TO BE DETERMINED HIS ATTORNEY CONFIRMED MR TELANDER 43 COULDN'T BE REACHED THE DEFENDANTS ENGAGED IN THE FRAUDULENT OFFER AND SALE OF UNREGISTERED SECURITIES PURPORTING TO BE LIMITED PARTNERSHIP INTERESTS IN A FOREIGN CURRENCY EXCHANGE PROGRAM THE SEC CHARGED SIE WHICH OPERATED FOR ABOUT TWO YEARS UNTIL SOMETIME LAST YEAR HAD OFFICES IN SAN DIEGO AND HUNTINGTON BEACH CALIF THE DEFENDANTS ALLEGEDLY PROMISED INVESTORS ANNUAL RETURNS OF BETWEEN 25 AND 416 FROM HEFTY COMMISSIONS ON FOREIGN CURRENCY TRANSACTIONS INVESTORS' FUNDS WERE SUPPOSED TO BE HELD TOTALLY WITHOUT RISK IN A SWISS BANK BUT INVESTORS HAVEN'T BEEN ABLE TO GET THEIR MONEY BACK THE SEC SAID THE SEC BELIEVES MR TELANDER HAS CONTROL OVER THE INVESTORS' FUNDS AN AGENCY SPOKESWOMAN SAID HE WAS SERVED WITH THE AGENCY'S COMPLAINT MONDAY IN YOUNTVILLE SHE SAID THE COURT ISSUED A TEMPORARY RESTRAINING ORDER AGAINST MR TELANDER AND SIE TO FREEZE ITS ASSETS AMONG OTHER THINGS 9303100036 930310 BUSINESS BRIEF SOUTHERN NATIONAL CORP BANKING COMPANY AGREES TO BUY EAST COAST SAVINGS SOUTHERN NATIONAL CORP SAID IT AGREED TO ACQUIRE EAST COAST SAVINGS BANK A GOLDSBORO NC MUTUAL THRIFT TERMS WEREN'T DISCLOSED THE TRANSACTION WHICH WOULD MAKE SOUTHERN NATIONAL BASED IN LUMBERTON NC A MARKET LEADER IN EASTERN PARTS OF THE STATE REQUIRES A DECISION BY EAST COAST DEPOSITORS TO CONVERT THE BANK TO A CAPITAL STOCK SAVINGS BANK SOUTHERN NATIONAL SAID IT WOULD ACQUIRE THE THRIFT BY SELLING STOCK TO THE EAST COAST DEPOSITORS AT A YETTOBE DETERMINED DISCOUNT SOUTHERN NATIONAL A BANK HOLDING COMPANY SAID IT WOULD HAVE ASSETS OF 53 BILLION AFTER ACQUIRING EAST COAST WHICH HAS ASSETS OF 256 MILLION 9303100035 930310 OTC FOCUS NASDAQ COMPOSITE RISES 025 AS DEBUT OF ISSUES BRINGS HOPE TO IPO MARKET BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEWISSUES MARKET IS TAKING ADVANTAGE OF THE UPSWING IN OVERTHECOUNTER STOCKS THE NASDAQ MARKET WHERE MOST INITIAL PUBLIC OFFERINGS TRADE IS COMING BACK FROM ITS RETREAT SIGNALING THAT IT'S SAFE TO GO BACK INTO THE WATER SAID RICHARD SMITH HEAD OF UNDERWRITING AT MONTGOMERY SECURITIES IN SAN FRANCISCO IT'S NOT GOING TO BE LIKE THE VERY BEGINNING OF THIS YEAR WHEN THE IPO MARKET WAS FRENZIED BUT A LOT OF DEALS ARE GOING TO GET DONE THE NASDAQ COMPOSITE INDEX YESTERDAY CLIMBED 173 OR 025 TO 68896 ONLY 29 AWAY FROM ITS RECORD OF 70885 REACHED IN FEBRUARY ADVANCING ISSUES OUTNUMBERED DECLINERS 1400 TO 1297 ON TOTAL VOLUME OF 2323 MILLION SHARES UP FROM MONDAY'S 2199 MILLION YESTERDAY'S TRADING DEBUT OF A HALF DOZEN NEW ISSUES BROUGHT HOPE TO THE IPO MARKET WHICH SLUMPED AFTER LAST MONTH'S SLEW OF POSTPONEMENTS AND CANCELLATIONS UNDERWRITERS ARE ENCOURAGED BY THE SUCCESSFUL FIRSTDAY TRADING OF PAYLESS CASHWAYS INC A NEW YORK STOCK EXCHANGE ISSUE THAT JUMPED TO 14 1/2 FROM ITS 12 3/4 OFFERING PRICE LAST SUMMER PAYLESS WAS ONE OF THE CASUALTIES OF A WEAK IPO MARKET WHEN IT AND SEVERAL OTHER CONCERNS THAT HAD GONE PRIVATE IN THE LEVERAGED BUYOUT BINGE OF THE 1980S WERE FORCED TO RETREAT AFTER MONDAY'S CLOSE THE BUILDING MATERIALS RETAILER PRICED 28 MILLION SHARES OR 375 MILLION THROUGH LEAD UNDERWRITER GOLDMAN SACHS & CO AT THE MIDDLE OF ITS EXPECTED RANGE OF 11 TO 13 A SHARE PAYLESS IS A VERY LARGE OFFERING THAT GOT DONE VERY WELL AND EVERYONE IS GOING TO LOOK TO SEE WHAT ELSE IS IN THEIR BAG SUCH AS OTHER REVERSE LBOS THAT MIGHT MAKE IT IN THE MARKET MR SMITH SAID TENCOR INSTRUMENTS ROSE 1/4 TO 7 3/4 FROM ITS INITIAL OFFERING PRICE OF 7 1/2 YESTERDAY MORNING THE COMPANY OFFERED 22 MILLION SHARES THROUGH UNDERWRITERS LED BY SHEARSON LEHMAN BROTHERS TENCOR INSTRUMENTS OFFERED ABOUT 15 MILLION SHARES AND SELLING SHAREHOLDERS SOLD THE REMAINING SHARES THE COMPANY'S WAFER DEFECT INSPECTION SYSTEMS ARE USED PRIMARILY IN THE MANUFACTURE OF INTEGRATED CIRCUITS BY THE SEMICONDUCTOR INDUSTRY COMMUNITY HEALTH COMPUTING CORP AT 10 FINISHED UNCHANGED FROM ITS MONDAY OFFERING PRICE COMMUNITY HEALTH COMPUTING DEVELOPS INFORMATION SYSTEMS FOR HOSPITALS AND OTHER HEALTH CARE FACILITIES THE OFFERING WAS AT THE LOW END OF THE COMPANY'S EXPECTATIONS OF 10 TO 12 THE LEAD UNDERWRITER WAS MONTGOMERY SECURITIES ALTHOUGH THE COMMUNITY HEALTH COMPUTING OFFERING WAS SUCCESSFUL MONTGOMERY'S MR SMITH SAID MOST MEDICALRELATED COMPANIES THAT WANT TO GO PUBLIC WILL HAVE TO WAIT A LONG TIME UNTIL THE MARKET WILL ACCEPT THEM HYPERMEDIA COMMUNICATIONS FINISHED UNCHANGED AT 5 FROM ITS OFFERING PRICE THE COMPANY SOLD 14 MILLION SHARES INCREASED FROM 12 MILLION THROUGH ITS SOLE UNDERWRITER BARINGTON CAPITAL GROUP LP HYPERMEDIA SAID IT WILL USE THE PROCEEDS TO INCREASE THE CIRCULATION BASE OF ITS NEWMEDIA MAGAZINE DEVELOP NEW PRODUCTS AND REPAY DEBT US CAN CORP SLIPPED 1/2 TO 11 1/2 FROM ITS OFFERING PRICE OF 12 ON ITS FIRST TRADING DAY ON MONDAY THE OAK BROOK ILL MANUFACTURER OF STEEL CONTAINERS PRICED 5550000 SHARES THROUGH UNDERWRITERS LED BY SALOMON BROTHERS SUPERCONDUCTOR TECHNOLOGIES ROSE 1/2 TO 10 1/2 FROM ITS INITIAL OFFERING PRICE OF 10 YESTERDAY THE COMPANY SAID ITS LEAD UNDERWRITER HJ MEYERS & CO HAD BEEN GRANTED A 45DAY OPTION TO PURCHASE AS MANY AS 225000 ADDITIONAL SHARES ABOVE THE OFFERING OF 15 MILLION TO COVER OVERALLOTMENTS SUPERCONDUCTOR TECHNOLOGIES DEVELOPS ADVANCED ELECTRONICS PRODUCTS INCORPORATING HIGH TEMPERATURE SUPERCONDUCTOR MATERIALS MOST SECTORS IN THE MARKET EXCEPT FOR BIOTECHNOLOGY STOCKS POSTED MODEST GAINS SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS BIOTECHNOLOGY BELLWETHERS SLID CHIRON DROPPED 1 3/4 TO 49 1/4 SYNERGEN FELL 1 1/8 TO 13 1/2 BIOGEN EASED 1/4 TO 30 3/4 AND GENZYME SLIPPED 3/4 TO 31 TECHNOLOGY STOCKS WERE MIXED MICROSOFT ROSE 5/8 TO 84 1/4 ADOBE SYSTEMS TUMBLED 1 1/8 TO 45 1/4 AND SUN MICROSYSTEMS JUMPED 1 1/8 TO 35 5/8 THE BIG SEMICONDUCTOR COMPANY INTEL DROPPED 1 TO 118 YESTERDAY INTEL PRICED FIVEYEAR 1998 STEPUP WARRANTS TO PURCHASE 10 MILLION COMMON SHARES AT 30 FOR THE FIRST YEAR THE STEPUP WARRANTS WILL BE EXERCISABLE AT A PRICE ABOUT 20 ABOVE THE INTEL STOCK PRICE AT THE TIME OF THE OFFERING DELL COMPUTER JUMPED 1 3/8 TO 35 AFTER THE AUSTIN TEXAS PERSONAL COMPUTER MAKER POSTED ONTARGET FOURTHQUARTER EARNINGS OF 77 CENTS A SHARE UP FROM 41 CENTS A SHARE A YEAR EARLIER DELL WAS SECOND ON THE NASDAQ MOST ACTIVE LIST WITH VOLUME OF 38 MILLION SHARES CHARMING SHOPPES FELL 7/8 TO 15 1/4 ON HEAVY TRADING OF 28 MILLION SHARES NEARLY FOUR TIMES ITS AVERAGE DAILY VOLUME THE BENSALEM PA APPAREL RETAILER POSTED EARNINGS FOR ITS FOURTH QUARTER ENDED JAN 30 OF 24 CENTS A SHARE UP FROM 18 CENTS A SHARE A YEAR EARLIER BUT THE COMPANY JUST MISSED THE 25 CENTS MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM BEN & JERRY'S HOMEMADE INCREASED 3/4 TO 27 3/4 THE WATERBURY VT ICE CREAM MAKER REPORTED FOURTHQUARTER EARNINGS OF 14 CENTS A SHARE UP FROM 11 CENTS A SHARE POSTED A YEAR EARLIER 9303100034 930310 HEARD ON THE STREET MARKET HAILS PRIMERICA'S SHEARSON BID BY WALL STREET JOURNAL REPORTERS RANDALL SMITH STEVEN LIPIN AND GREG STEINMETZ NEW YORK THANKS A BILLION INVESTORS SAID YESTERDAY AS THEY APPLAUDED PRIMERICA'S BID TO BUY THE BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS FROM AMERICAN EXPRESS PRIMERICA'S STOCK LEAPED 4 3/4 TO 44 3/4 OR 12 ON FIVETIMESNORMAL VOLUME OF TWO MILLION SHARES AMERICAN EXPRESS ROSE A TAMER 1 1/4 TO 28 BUT IT HAS THREE TIMES AS MANY SHARES OUTSTANDING SO THE TWO STOCKS COMBINED ADDED 13 BILLION IN MARKET VALUE ANALYSTS GUSHED OVER WHAT THEY SAY IS PRIMERICA CHAIRMAN SANFORD WEILL'S ABILITY TO SQUEEZE COSTS OUT OF SHEARSON WHERE AMERICAN EXPRESS CAN'T ANALYST FRANK SUOZZO OF SG WARBURG SECURITIES PREDICTED PRIMERICA STOCK COULD HIT 60 WITHIN A YEAR IF THE DEAL GOES THROUGH WITH A BROKERAGE THERE ARE ECONOMIES OF SCALE SANDY'S GOOD AT COBBLING TOGETHER THESE THINGS WRINGING OUT INEFFICIENCIES AND SAVING MONEY SAID CHARLES RONSON AN ANALYST AT BALESTRA CAPITAL A NEW YORK MONEY MANAGER THESE ARE THINGS AMEX IS NOTABLY BAD ON THE MARKET ALSO CHEERED AMERICAN EXPRESS FOR THROWING IN THE TOWEL ON AT LEAST PART OF ITS MONEYLOSING SECURITIES SUBSIDIARY SENDING AMERICAN EXPRESS STOCK HIGHER ON VOLUME OF 52 MILLION SHARES SOME 2 1/2 TIMES NORMAL ANALYSTS SAID AMERICAN EXPRESS CHIEF EXECUTIVE HARVEY GOLUB STILL NEEDS TO DISCARD A FEW MORE VESTIGES OF THE UNSUCCESSFUL FINANCIAL SUPERMARKET ASSEMBLED BY HIS PREDECESSOR JAMES ROBINSON III BEFORE HE CAN CONCENTRATE ON SHORING UP THE COMPANY'S CORE CHARGECARD BUSINESS IT WAS PROBABLY NO COINCIDENCE THAT AMERICAN EXPRESS'S TALKS WITH MR WEILL GOT SERIOUS LESS THAN A MONTH AFTER MR ROBINSON HIS ONETIME BOSS LEFT THE COMPANY'S HELM THE TWO MEN ONCE VIED FOR INFLUENCE AT AMERICAN EXPRESS AND SOME INVESTORS BELIEVE MR ROBINSON WOULD HAVE DISLIKED THE APPEARANCE THAT MR WEILL WAS NEEDED TO RESCUE SHEARSON MR ROBINSON COULDN'T BE REACHED FOR COMMENT MARIO GABELLI WHOSE MONEY MANAGEMENT FIRM OWNS 58 MILLION SHARES SAYS AMERICAN EXPRESS MAY HAVE TO TAKE A FURTHER WRITEDOWN FOR ITS BALCOR REAL ESTATE SUBSIDIARY FOR EXAMPLE BUT ONCE MR GOLUB CAN SELL OR SPIN OFF THE REST OF SHEARSON LEHMAN HE SAYS WHAT YOU HAVE IS A COMPANY THAT'S BACK TO BASICS ACCORDING TO NED DAVIS OF GERARD KLAUER MATTISON AMERICAN EXPRESS HAS CURRENT ANNUAL EARNINGS POTENTIAL OF 220 A SHARE FROM ITS CHARGECARD AND IDS MUTUAL FUND BUSINESSES ALONE INVESTORS CAN BUY THOSE EARNINGS FOR LESS THAN 20 A SHARE MR DAVIS CONTENDS AFTER SUBTRACTING THE VALUE OF OTHER ASSETS THAT ARE BEING SOLD OR COULD BE SOLD THAT'S A MULTIPLE OF LESS THAN 10 TIMES THOSE EARNINGSWHICH HE BELIEVES SHOULD RATE A 15 MULTIPLE ONLY A SLIGHT DISCOUNT TO THE MARKET THAT WOULD IMPLY THE STOCK IS WORTH NEARLY 40 SOME INVESTORS WONDER IF AMERICAN EXPRESS WILL GET GROUND INTO THE CARDBUSINESS DUST BY THE LIKES OF AMERICAN TELEPHONE & TELEGRAPH AND GENERAL ELECTRIC BUT THE BULLISH MR DAVIS BELIEVES THAT THE COMPANY CAN HOLD ITS MARKET SHARE GROWING 9 TO 11 WITH THE REST OF THE INDUSTRY IN THE MEANTIME OF COURSE AMERICAN EXPRESS MUST NAVIGATE THROUGH A CLOUD OF UNCERTAINTY INVOLVING SHEARSONRELATED LIABILITIES WRITEDOWNS AND ASSET SALES THAT MAY OR MAY NOT GO SMOOTHLY WHAT COULD GO WRONG WITH PRIMERICA WHOSE STOCK HAS NOW SURGED A SIZZLING 88 SINCE LAST JUNE MR RONSON OF BALESTRA CAPITAL BELIEVES THE BIGGEST RISK IN THE SHEARSON DEAL IS THAT OF A DOWNTURN IN THE SOARING STOCK AND BOND MARKETS WITHIN THE NEXT NINE MONTHS BEFORE MR WEILL HAS A CHANCE TO MAKE HIS CUTBACKS THE REAL RISK IS THAT THE MARKET CRASHES BEFORE THE SAVINGS TAKE PLACE HE SAYS HE COULD GET STUCK WITH TOO MANY FIXED EXPENSES BEFORE HE LOWERED THEM IF THE MARKET IS GOOD YOU'LL HAVE LESS RESISTANCE FROM RETAIL BROKERS WHEN YOU FIRE THEM IF THE MARKET TANKS ALL THESE EXPENSES WILL HIT HIM BEFORE THE SAVINGS TAKE EFFECT MR WEILL WINS NEARUNANIMOUS PRAISE FROM SHAREHOLDERS FOR HIS ABILITY TO MANAGE SUCH ACQUISITIONS INVESTORS ARE IN LOVE WITH HIM THERE IS NOBODY BETTER AT MANAGING BROKERAGE FIRMS SAYS SCOTT OFFEN A MONEY MANAGER AT FIDELITY INVESTMENTS ONE OF PRIMERICA'S LARGEST SHAREHOLDERS WITH 129 MILLION SHARES YOU HAVE TO ASSUME IF THEY BUY THEY'VE GOT THE PRICING RIGHT MR SUOZZO OF SG WARBURG SAYS THAT SHEARSON'S SMALLINVESTOR BROKERAGE AND ASSETMANAGEMENT OPERATIONS GENERATED 29 BILLION IN 1992 REVENUE DOUBLE THE 145 BILLION OF PRIMERICA'S EXISTING BROKERAGE UNIT SMITH BARNEY HARRIS UPHAM HE IS ALREADY ESTIMATING THAT PRIMERICA CAN EARN 4 A SHARE THIS YEAR AND 450 IN 1994 NOTING THAT THE SHEARSON ACQUISITION COULD ADD MORE THAN 1 A SHARE TO THAT WITHIN TWO TO THREE YEARS MR WEILL RECENTLY SHOWED EXCELLENT TIMING IN ACQUIRING A 27 STAKE IN TRAVELERS CORP AN INSURANCE COMPANY JUST BEFORE INSURANCE STOCKS RALLIED ON EXPECTATIONS OF A PICKUP IN PROPERTYCASUALTY RATES BUT THE PRIMERICA CHAIRMAN DOESN'T ALWAYS WALK ON WATER THE AL WILLIAMS TERMLIFE SUBSIDIARY HE ACQUIRED AS PART OF PRIMERICA SUSTAINED A STEEP DECLINE IN NEW LIFEPOLICY SALES AFTER THE DEPARTURE OF ITS FOUNDER ONLY RECENTLY HAS THAT SITUATION STABILIZED MR OFFEN CAUTIONS ANY REASONABLE INVESTOR HAS TO BE AWARE THEY PRIMERICA HAVE A LOT OF WORK CUT OUT FOR THEM THERE IS A LOT OF WORK AT TRAVELERS WILLIAMS HASN'T TURNED AROUND YET THIS WILL BE THE THIRD MAJOR TURNAROUND THEY'RE DOING AT THE SAME TIME 9303100033 930310 BUSINESS BRIEF NATIONAL GYPSUM CO BANKRUPTCY COURT JUDGE CONFIRMS REORGANIZATION NATIONAL GYPSUM CO DALLAS SAID ITS REORGANIZATION PLAN WAS CONFIRMED BY A BANKRUPTCY COURT JUDGE SETTING THE STAGE FOR THE COMPANY'S EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS PETER BROWNING CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE EXPECTS THE REORGANIZATION PLAN TO BECOME EFFECTIVE BY THE END OF JUNE ENDING THE WALLBOARD MAKER'S BANKRUPTCYCOURT PROCEEDINGS WHICH BEGAN IN OCTOBER 1990 UNDER TERMS THE REORGANIZED COMPANY WILL HAVE A CAPITAL STRUCTURE OF 350 MILLION WHICH INCLUDES 100 MILLION PRINCIPAL AMOUNT OF 10YEAR 10 SENIOR NOTES AND 20 MILLION COMMON SHARES VALUED AT 1250 EACH HOLDERS OF THE COMPANY'S 4824 MILLION OF SENIOR DEBT WILL RECEIVE 85 OF THE NOTES AND 876 OF THE STOCK SENIOR TRADE CREDITORS WILL RECEIVE 127 OF THE SENIOR NOTES AND 101 OF THE COMMON STOCK THE COMPANY ALSO WILL ISSUE WARRANTS FOR 23 MILLION MORE COMMON SHARES WITH AN EXERCISE PRICE OF 1450 A SHARE OF WHICH 977 WILL BE ISSUED TO HOLDERS OF 5376 MILLION OF SUBORDINATED DEBT OTHER CREDITORS GROUPS WITH SMALLER CLAIMS WILL RECEIVE THE REMAINING NOTES WARRANTS AND STOCK THE PLAN ESTABLISHES A TRUST FOR THE SETTLEMENT OF ASBESTOS CLAIMS THE TRUST WILL RETAIN STOCK IN AUSTIN CO AN OPERATING UNIT OF NATIONAL GYPSUM ALONG WITH CASH AND HISTORICAL INSURANCE POLICIES FOR THE BENEFIT OF CLAIMANTS 9303100032 930310 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 9303100031 930310 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB BILL CLINTON IS ADDRESSING THE DEFICIT CRISIS THE HEALTHCARE CRISIS AND THE BOSNIA CRISIS BUT THERE'S ANOTHER CRISIS HE HAS YET TO ADDRESS THE POLITICAL SLEAZE CRISIS CANDIDATE CLINTON PROMISED TO CUT THE ROT OUT OF THE SYSTEM BY WHICH POLITICIANS PAY FOR CAMPAIGNS BUT THERE'S NO BIG WHITE HOUSE PUSH FOR CHANGE YET AND THOUGH ROSS PEROT IS LOOKING ON LIKE SOME AVENGING ANGEL THERE ARE SIGNS THAT MR CLINTON'S DEMOCRATS ARE BEGINNING TO HESITATE AT CHANGING THE SYSTEM THAT PUT THEM IN WASHINGTON IN THE FIRST PLACE CONSIDER THE SCENE WHEN MR CLINTON CALLED CONGRESSIONAL LEADERS TO THE WHITE HOUSE RECENTLY TO TALK ABOUT CAMPAIGN FINANCE CHANGES THE PRESIDENT BARELY FINISHED HIS OPENING SPIEL BEFORE HOUSE SPEAKER THOMAS FOLEY SPOKE UP DON'T GIVE CONGRESSIONAL DEMOCRATS UNREASONABLE DEADLINES FOR CAMPAIGN FINANCE REFORM THE SPEAKER IMPLORED FOR THEIR PLATE ALREADY IS FULL EVEN SOME WHO ARE IN POLITICS TO SHAKE UP THE SYSTEM ARE RESISTING CHANGE EMILY'S LIST AN ORGANIZATION FORMED TO RECRUIT MORE WOMEN DEMOCRATIC CANDIDATES DOESN'T WANT TO END THE PRACTICE OF BUNDLING TOGETHER SMALL CAMPAIGN DONATIONS FOR A SINGLE CANDIDATE SO TO FIGHT THAT CHANGE IT HAS HIRED THE LAW FIRM OF TOMMY BOGGS THE KING OF BIGMONEY DEMOCRATIC SPECIALINTEREST LOBBYISTS YET MR CLINTON AND THE DEMOCRATS RUN GREAT RISKS IF THEY DODGE THE CLEANUP TASK THE 1992 ELECTION WAS AS MUCH ABOUT CHANGING THE POLITICAL SYSTEM AS ABOUT BUDGET DEFICITS IF WASHINGTON FAILS TO ACT NOW WARNS OKLAHOMA DEMOCRATIC REP MIKE SYNAR CYNICAL VOTERS ARE SIMPLY GOING TO PRESS AHEAD WITH A MORE RADICAL REFORM OF THEIR OWN TERM LIMITS ARE ALIVE AND KICKING MR CLINTON HAS ASSIGNED THE CAMPAIGNFINANCE PROBLEM TO A YOUNG NADERITE AIDE MICHAEL WALDMAN ADVISERS INSIST A HIGHPRIORITY PUSH FOR REFORM IS COMING SOON AND HOUSE DEMOCRATS WHO ARE THE MOST LEERY OF CHANGE MET YESTERDAY TO PONDER CALLING FOR MORE PUBLIC FINANCING OF CAMPAIGNS BUT THE MOMENT FOR SERIOUS ACTION IS NOW BEFORE MEMORIES OF 1992 VOTER DISENCHANTMENT FADE AND THE BUSINESS OF RAISING YET MORE MONEY FOR 1994 TAKES OVER THE PROBLEMS WITH THE CURRENT SYSTEM ARE OBVIOUS IT GIVES HUGE ADVANTAGES TO INCUMBENTS WHO CAN EASILY RAISE MONEY FROM WASHINGTON'S SPECIAL INTERESTS AND IN TURN GIVES THOSE SPECIAL INTERESTS LEVERAGE OVER THE POLITICIANS THEY FINANCE THE OUTLINES OF A SOLUTION ARE EQUALLY CLEAR HOLD DOWN THE COST OF CAMPAIGNS BY GIVING CANDIDATES FREE TELEVISION TIME AND CHEAPER POSTAL RATES IF THEY ACCEPT VOLUNTARY SPENDING LIMITS CUT DOWN ON CONTRIBUTIONS BY POLITICALLY POWERFUL POLITICAL ACTION COMMITTEES OR PACS END THE FLOW OF UNRESTRICTED SOFTMONEY DONATIONS WHICH PARTIES COLLECT FROM BUSINESSES AND LABOR UNIONS TO INDIRECTLY AID THEIR PRESIDENTIAL CANDIDATES AND TO PAY FOR SOME PUBLIC FINANCING OF CAMPAIGNS USE A NEW POT OF MONEY MADE AVAILABLE BY MR CLINTON'S PLAN TO END THE TAX DEDUCTION FOR LOBBYING LAWMAKERS PASSED A BILL CONTAINING MOST OF THESE REFORMS LAST YEAR BUT THEY KNEW THEN THAT PRESIDENT BUSH WOULD VETO IT NOW THE DEBATE ACTUALLY MEANS SOMETHING THIS YEAR WE'RE SHOOTING WITH REAL BULLETS REP SYNAR SAYS AND VOTERS ARE GETTING FRESH REMINDERS ABOUT THE ODOR OF MONEY THAT HANGS OVER POLITICS THE FEDERAL ELECTION COMMISSION HAS JUST REPORTED THAT HOUSE AND SENATE CANDIDATES SPENT A RECORD 678 MILLION IN LAST YEAR'S ELECTION CYCLE 52 MORE THAN IN 1990 AND COMMON CAUSE A NONPARTISAN PUBLIC POLICY ORGANIZATION HAS JUST REPORTED THAT MR CLINTON AND THE DEMOCRATIC PARTY PULLED IN 201 MILLION IN UNCONTROLLED SOFTMONEY DONATIONS DURING LAST YEAR'S ELECTION SEASON THAT INEVITABLY RAISES TROUBLING QUESTIONS THE COLLECTION OF SOFT MONEY MUCH OF WHICH CAME FROM BUSINESS INTERESTS WAS OVERSEEN BY DEMOCRATIC CHAIRMAN RON BROWN WHO NOW IS COMMERCE SECRETARY DO THE MANY HIGHTECHNOLOGY COMPANIES THAT CONTRIBUTED EXPECT TO BENEFIT FROM AN INDUSTRIAL POLICY COMPOSED BY THE CLINTON COMMERCE DEPARTMENT MEANWHILE THE IRREPRESSIBLE MR PEROT IS PREPARING A PRIMETIME TELEVISION SPECIAL FOR LATER THIS MONTH PUSHING GOVERNMENT REFORM MR PEROT CAN HARDLY CLAIM TO BE PURGING MONEY FROM POLITICS HE'S FORMIDABLE PRECISELY BECAUSE HE HAS AN ESTIMATED 22 BILLION FORTUNE WHICH HE'S NOW SUPPLEMENTING BY TAKING 15 DONATIONS FROM AVERAGE AMERICANS HOW MANY OF THOSE DONATIONS HE WON'T SAY AND NOBODY CAN MAKE HIM STILL MR PEROT HAS CONVINCED VOTERS THAT THE CURRENT SITUATION IS CORRUPT AND IT FALLS TO MR CLINTON TO CHANGE IT OKLAHOMA SEN DAVID BOREN A REFORM CHAMPION PUT IT BEST DURING THE DEMOCRATS' WHITE HOUSE MEETING IT'S UP TO YOU THE SENATOR TOLD THE PRESIDENT TO HOLD OUR FEET TO THE FIRE UNTIL WE CHANGE THE SYSTEM 9303100030 930310 INTERNATIONAL JAPAN ECONOMY APPEARS TO DRIFT INTO RECESSION MANY ANALYSTS FEAR SCANDAL WILL DISTRACT POLITICIANS FROM NECESSARY REFORM BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS GOVERNMENT LEADERS FUSS OVER THE LATEST TWIST IN A LONGRUNNING POLITICAL CORRUPTION SCANDAL JAPAN'S ECONOMY CONTINUES TO DRIFT ANALYSTS EXPECT STILL MORE BAD NEWS ABOUT JAPAN'S BELEAGUERED ECONOMY IN THE NEXT WEEK OR SO WHEN THE GOVERNMENT RELEASES GROSS NATIONAL PRODUCT NUMBERS FOR THE QUARTER ENDED DEC 31 MANY ECONOMISTS ESTIMATE THAT GNP THE TOTAL OUTPUT OF THE NATION'S GOODS AND SERVICES CONTRACTED IN THE PERIOD PERHAPS BY AS MUCH AS 1 ON AN ANNUAL BASIS THAT WOULD MARK THE SECOND CONSECUTIVE QUARTERLY DECLINE IN GNP AND TILT JAPAN INTO RECESSION EVEN BY US STANDARDS IT IS ALSO LIKELY TO DRAG THE NATION'S GROWTH RATE FOR ALL OF CALENDAR 1992 BELOW 2 A RESPECTABLE SHOWING BY WESTERN STANDARDS BUT A DISMAL ONE FOR JAPAN BUT MORE WORRISOME ECONOMISTS SAY IS THAT A GENUINE RECOVERY SEEMS A LONG WAY OFF WHILE A FEW OPTIMISTS THINK JAPAN WILL BOUNCE BACK WITHIN SEVERAL MONTHS THE PREVAILING VIEW IS THAT THE ECONOMY IS HURTLING FROM BAD TO WORSE MANY ECONOMISTS SAY RECOVERY WON'T BEGIN UNTIL AT LEAST SEPTEMBER AND EVEN THEN IS LIKELY TO BE BARELY NOTICEABLE JUST YESTERDAY THE ECONOMIC PLANNING AGENCY REPORTED THAT MACHINERY ORDERS TO JAPANESE MANUFACTURERS FELL 11 IN JANUARY FROM A YEAR EARLIER THE 10TH STRAIGHT MONTH OF YEARONYEAR DECLINES IT'S GOING TO BE A VERY GRADUAL RETURN SAYS CHIHARU SHIMA AN ECONOMIST AT UBS PHILLIPS & DREW INTERNATIONAL LTD WHO THINKS JAPAN'S GROWTH RATE WILL REMAIN BELOW 3 THROUGH THE END OF 1994 MANY FEAR THE ARREST SATURDAY OF SHIN KANEMARU A FORMER OFFICIAL IN THE RULING LIBERAL DEMOCRATIC PARTY AND A MAN ONCE REGARDED AS JAPAN'S MOST POWERFUL POLITICIAN HAS AGAIN DISTRACTED POLITICAL LEADERS FROM TENDING TO THE NATION'S BUSINESS MR KANEMARU SPARKED CONTROVERSY LAST YEAR WHEN HE ADMITTED TO VIOLATING CAMPAIGNFINANCE LAWS PROMPTING A FIGHT BETWEEN THE LDP AND OPPOSITION PARTIES OVER HOW THOROUGHLY TO INVESTIGATE THE MATTER THE FLAP DELAYED A PACKAGE OF STIMULATIVE FISCAL MEASURES FOR WEEKS PROSECUTORS RETURNED MR KANEMARU TO THE LIMELIGHT OVER THE WEEKEND BY ABRUPTLY ARRESTING HIM ON UNRELATED CHARGES OF TAX EVASION HOURS AFTER THE LOWER HOUSE OF THE JAPANESE PARLIAMENT APPROVED A BUDGET FOR THE FISCAL YEAR BEGINNING APRIL 1 THAT LEGISLATION HAD SAILED THROUGH AHEAD OF SCHEDULE BUT ANALYSTS NOW WORRY THAT THE LATEST REPORTS OF WRONGDOING BY MR KANEMARU WILL DERAIL CONSIDERATION OF ADDITIONAL POLICY MOVES THAT ARE NEEDED ECONOMISTS ARE COUNTING ON THE GOVERNMENT TO STIMULATE THE ECONOMY BECAUSE BOTH PRIVATE CONSUMPTION AND BUSINESS INVESTMENT ARE IN A FUNK CONSUMERS ARE ANXIOUS BECAUSE LAND AND STOCK PRICES HAVE PLUMMETED WHILE OVERTIME PAY AND YEAREND BONUSES ARE FALLING FAST FOR MANY HOUSEHOLDS THE PROSPECT OF ONCEUNTHINKABLE LAYOFFS HAS BECOME A CONCERN WITH CONSUMERS KEEPING A TIGHT GRIP ON THEIR POCKETBOOKS JAPAN'S BUSINESSES AREN'T EAGER TO RESUME SPENDING ON NEW PLANTS OR EQUIPMENT JAPAN'S LARGE COMPANIES ARE LIKELY TO POST THEIR THIRD STRAIGHT YEAR OF PRETAX PROFIT DECLINES IN THE CURRENT FISCAL YEAR WHICH ENDS MARCH 31 AND MANY ANALYSTS WARN PROFITS WILL TUMBLE NEXT YEAR TOO BUSINESS INVESTMENT WHICH ACCOUNTS FOR NEARLY A FIFTH OF JAPAN'S GNP COULD SLIP AS MUCH AS 10 IN 1993 AND FALL AGAIN IN 1994 SOME ECONOMISTS SAY LDP LEADERS HAVE HINTED THAT THEY'RE STUDYING PROPOSALS FOR CUTTING INCOME TAX THIS YEAR AS A MEANS OF SPURRING CONSUMER SPENDING AND REVERSING THE ECONOMY'S DOWNWARD SPIRAL BUT THE IDEA DREW CRITICISM FROM ANALYSTS IN THE PAST JAPANESE HOUSEHOLDS HAVE RESPONDED TO TAX CUTS IN PERIODS OF UNCERTAINTY BY RUSHING THE EXTRA MONEY TO THE BANK THE SAVINGS RATE HAS BEEN INCHING UPWARD MANY BUSINESS LEADERS FAVOR STIMULATIVE MOVES THAT WILL WORK THEIR WAY THROUGH THE ECONOMY MORE QUICKLY SUCH AS TAX BREAKS FOR HOUSING AND INCREASED PUBLIC WORKS SPENDING ECONOMISTS SAY THE GOVERNMENT MUST APPROVE A PACKAGE OF ADDITIONAL FISCAL MEASURES WORTH AT LEAST EIGHT TRILLION YEN 6846 BILLION TO KEEP THE ECONOMY FROM STUMBLING FURTHER 9303100029 930310 INTERNATIONAL PHILIPPINE AIR HOPES TO REVIVE BOND OFFER PAY DEPOSIT TO BOEING MANILA NOW THAT THE DUST IS SETTLING AFTER A BITTER OWNERSHIP BATTLE FOR PHILIPPINE AIRLINES THE COMPANY HOPES TO PROCEED WITH A PLANNED EUROBOND OFFERING AND WITH DEPOSIT PAYMENTS OWED TO BOEING CO FOR JETS ALREADY ORDERED PAL'S CHIEF FINANCIAL OFFICER EDGARDO DEL FONSO SAID PLANS FOR THE 60 MILLION TO 100 MILLION EUROBOND OFFERING PAL'S FIRST WERE PUT ON HOLD IN JANUARY AFTER AN OWNERSHIP TUG OF WAR DEVELOPED BETWEEN LUCIO TAN A MAJOR AIRLINE INVESTOR AND ANTONIO COJUANGCO JR THEN PAL'S CHAIRMAN MR TAN A BEER AND TOBACCO MOGUL WON THE BATTLE FOR CONTROL THIS MONTH AND APPOINTED A PAL BOARD MEMBER TO SUCCEED MR COJUANGCO IN THE AIRLINE'S TOP JOB THE OWNERSHIP DISPUTE ALSO DERAILED THE SECOND AND FINAL PAYOUT FROM A PREVIOUSLY NEGOTIATED 122 MILLION SYNDICATED LOAN EIGHTEEN PHILIPPINE BANKS HAD FORKED OVER 75 MILLION WHICH THE AIRLINE USED FOR DOWNPAYMENTS ON SIX AIRBUS INDUSTRIE JETS ORDERED LAST YEAR BUT MEMBERS OF THE LENDING SYNDICATE IN JANUARY DECLINED TO RELEASE THE REMAINING FUNDS WHICH WERE TO GO TO BOEING FOR DEPOSITS ON FOUR 747 JUMBO JETS MR DEL FONSO SAID PAL HAS CANCELED MOST OF THE SECOND TRANCHE OF THAT LOAN AND FOUND NEW LENDERS WILLING TO PROVIDE THE 42 MILLION PAL OWES BOEING MR TAN WHO IS EXPECTED TO RUN THE AIRLINE FROM BEHIND THE SCENES HAD INDICATED THROUGHOUT THE DISPUTE THAT HE DIDN'T AGREE WITH THE AIRCRAFT ORDERS WHICH WERE PLACED BY MR COJUANGCO BUT PAL HASN'T CANCELED ANY ORDERS TO DATE AND INDEED IS PROCEEDING WITH FINANCING PLANS FOR THE FIRST TWO 747S TO BE DELIVERED OFFICIALS NOW HINT THAT THE FLEET PLAN WON'T BE SCUTTLED BUT MAY BE MODIFIED 9303100028 930310 SEXUAL POLITICS MOSTLY MALE CONGRESS IS STILL A TOUGH SELL IN HARASSMENT CASES BUREAUCRACY POWERFUL ALLIES CAN SOMETIMES SHIELD MISBEHAVING LAWMAKERS NEXT UP THE PACKWOOD CASE BY CATHY TROST AND PAULETTE THOMAS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN THE US SENATE'S ETHICS COMMITTEE WENT LOOKING FOR NEW MEMBERS IN JANUARY IT HAD AN UNUSUALLY HARD TIME FINDING SENATORS WILLING TO SIT ON THE PANEL THAT PASSES JUDGMENT ON THEIR PEERS ONE BIG REASON FOR THE RELUCTANCE IS THE COMMITTEE'S FIRST TASK GUARANTEED TO BE CONTROVERSIAL AND UNPLEASANT INVESTIGATING ACCUSATIONS OF SEXUAL HARASSMENT AGAINST VETERAN REPUBLICAN SEN BOB PACKWOOD OF OREGON SINCE THE ANITA HILLCLARENCE THOMAS HEARINGS IN 1991 CONGRESS LIKE MUCH OF AMERICA HAS BECOME MORE AWARE OF SEXUAL HARASSMENT AS THE PANEL NOW MOVES AHEAD ON THE PACKWOOD INQUIRY THE CASE IS FOCUSING ATTENTION ON ONE QUESTION HAS THAT AWARENESS CHANGED THE WAY CONGRESS DEALS WITH EMPLOYEES WHO ACCUSE THEIR BOSSES OF SEXUAL MISCONDUCT IT IS DAUNTING FOR ANYONE TO PURSUE CLAIMS OF SEXUAL HARASSMENT AGAINST AN EMPLOYER BUT WHEN THE EMPLOYER IS A MEMBER OF CONGRESS THE EXERCISE CAN BRING EXTRAORDINARY EXPOSURE PAIN AND FRUSTRATION CONGRESS NOT ONLY IS DOMINATED BY MEN BUT BY THE POWERFUL MEN WHO MAKE THE NATION'S LAWS AND WHO HAVE EXEMPTED THEIR INSTITUTION FROM MANY STATUTES REGARDING FAIR EMPLOYMENT IF SOMEONE WORKS FOR A PRIVATE EMPLOYER SHE HAS FAR GREATER PROTECTION AVAILABLE FAR MORE CHEAPLY AND FAR MORE QUICKLY THAN SOMEONE WHO WORKS FOR THE US CONGRESS SAYS RICHARD SEYMOUR HEAD OF THE EMPLOYMENT DISCRIMINATION PROJECT OF THE LAWYERS COMMITTEE FOR CIVIL RIGHTS UNDER THE LAW SEXUALHARASSMENT CHARGES ARE OFTEN HER WORD AGAINST HIS BUT UNLIKE MOST PRIVATE INDIVIDUALS A CONGRESSMAN HAS POWERFUL ALLIES TO CALL ON AND WITH THE RIGHT VOTING RECORD HE MAY EVEN BE ABLE TO RALLY WOMEN'S GROUPS TO HIS AID FORMER US REP JIM BATES A CALIFORNIA DEMOCRAT IS THE ONLY CONGRESSMAN EVER DISCIPLINED BY A CONGRESSIONAL ETHICS COMMITTEE FOR SEXUAL HARASSMENT HIS ACCUSER DORENA BERTUSSI WHO HAD BEEN ONE OF HIS LEGISLATIVE ASSISTANTS DISCOVERED THE HURDLES FACED BY CONGRESSIONAL EMPLOYEES WHO LEVEL SUCH CHARGES WHEN SHE WENT TO THE HOUSE ETHICS COMMITTEE OFFICE IN 1988 TO LEARN HOW TO FILE A COMPLAINT A RECEPTIONIST HANDED HER A BOOKLET WRITTEN IN LEGALESE ON RULES AND PROCEDURES BUT WITH NO INFORMATION ON HOW TO FILE A COMPLAINT SO I WINGED IT SHE SAYS AND SHE WROTE A LETTER TO THE COMMITTEE DETAILING HER CHARGES THAT WAS JUST THE BEGINNING UNDER THE ARCANE RULES OF THE HOUSE MS BERTUSSI THEN 36 YEARS OLD HAD TO PERSUADE A MEMBER OF CONGRESS TO SUBMIT HER COMPLAINT TO THE COMMITTEE IF THREE MEMBERS DECLINED SHE COULD DELIVER IT HERSELF AFTER ONE MEMBER INITIALLY AGREED TO ACT AS GOBETWEEN AND LATER DECLINED MS BERTUSSI PERSUADED ANOTHER ONE TO SUBMIT THE COMPLAINT IT TOOK A YEAR FOR THE PANEL TO INVESTIGATE AND MAKE A DECISION SINCE THEN SOME CHANGES HAVE BEEN MADE INCLUDING ESTABLISHMENT OF OFFICES OF FAIR EMPLOYMENT PRACTICES IN THE HOUSE AND SENATE TO AMONG OTHER THINGS MEDIATE HARASSMENT COMPLAINTS CARL MOORE DEPUTY DIRECTOR OF THE SENATE OFFICE OF FAIR EMPLOYMENT PRACTICES BELIEVES THAT THE PROCESS HAS BEEN AS EFFECTIVE IN INSURING AN EMPLOYEE'S RIGHTS AS PRIVATESECTOR MODELS CASES CAN BE RESOLVED MUCH MORE QUICKLY UNDER THE SENATE'S REMEDIAL PROCESS THAN IN COURTS AND FAIREMPLOYMENT AGENCIES HE SAYS AND MEDIATION IS A VALUABLE TOOL IN REACHING SETTLEMENTS THIS PROCESS HAS THE POTENTIAL FOR REAL ADVANTAGES HE SAYS FROM THE TIME YOU FILE A FORMAL COMPLAINT IN LESS THAN A YEAR YOU COULD BE AT THE COURT OF APPEALS BUT THESE FAIREMPLOYMENT OFFICES CREATED BY THE HOUSE IN 1988 AND BY THE SENATE IN 1991 DON'T OFFER THE SAME PROTECTIONS AVAILABLE TO AN EMPLOYEE AT A TYPICAL LARGE AMERICAN COMPANY AND THEY CAN'T DISCIPLINE MEMBERS THAT IS LEFT TO THE FULL HOUSE OR SENATE FOLLOWING RECOMMENDATIONS BY THEIR ETHICS COMMITTEES THE FAIREMPLOYMENT OFFICES WORK IN SECRET THE HOUSE OFFICE SELECTS MEMBERS OF CONGRESS AND STAFFERS TO REVIEW CASES SENATE CASES ARE HEARD BY OUTSIDE ARBITRATORS WHO CAN AWARD COMPENSATORY DAMAGES AND RECOMMEND REVIEW BY THE ETHICS COMMITTEE THE ARBITRATORS' DECISIONS CAN BE APPEALED IN FEDERAL COURT HOUSE EMPLOYEES CAN'T FILE CIVIL SUITS UNDER THE THEORY THAT ANY COURT ORDER AGAINST A CONGRESSMAN WOULD VIOLATE THE SEPARATIONOFPOWERS DOCTRINE THE SENATE'S NEW RULES ALLOW CIVIL SUITS BUT EXPERTS QUESTION THEIR LEGALITY UNDER THE SAME REASONING IN ANY CASE CONGRESSIONAL EMPLOYEES CAN'T SEEK PUNITIVE DAMAGES FROM CONGRESSMEN IN CONTRAST PRIVATESECTOR EMPLOYEES CAN TAKE COMPLAINTS TO MANAGEMENT STATE OR FEDERAL COURTS OR FAIREMPLOYMENT AGENCIES AND SEEK COMPENSATORY AND PUNITIVE DAMAGES AND UNLIKE CONGRESS WHICH HAS HISTORICALLY BEEN SLOW TO INITIATE ACTION IN HARASSMENT CASES COMPANIES HAVE A HUGE INCENTIVE TO RESPOND QUICKLY MOST CORPORATIONS HAVE LEARNED THAT PROMPT INVESTIGATION IS A WAY NOT ONLY OF EFFICIENTLY DEALING WITH THE PROBLEM BUT ALSO OF DEFENDING THEMSELVES AGAINST CHARGES SAYS JUDITH VLADEK A PLAINTIFF'S LAWYER DELAY IN TAKING ACTION OFTEN SPURS COURTS TO PILE ON PUNITIVE DAMAGES SHE ADDS THE CAPITOL WORKPLACE IS GOVERNED BY A MISHMASH OF RULES EACH SENATE AND HOUSE OFFICE IS A FIEF UNTO ITSELF WITH ITS OWN EMPLOYMENT POLICIES THE SENATE ALONE HAS MORE THAN 150 SEPARATE PERSONNEL SYSTEMS IN SOME RESPECTS IT ISN'T SURPRISING THAT SEXUAL HARASSMENT WOULD BE A PROBLEM ON THE HILL THE CAPITOL IS OVERWHELMINGLY STAFFED BY YOUNG WOMEN IN LOWPAYING JOBS WHOSE LOYALTY TO THE BOSS SOMETIMES MAKES THEM VULNERABLE TO EXPLOITATION IN SEN PACKWOOD'S CASE THAT LOYALTY WAS BASED IN PART ON HIS STAFFERS' FERVENT BELIEF IN HIS PROWOMEN POLITICS ALL YOUR ENERGY AND ALL YOUR LONG HOURS REVOLVED AROUND HOW TO MAKE THIS MAN LOOK BETTER SAYS ONE FEMALE FORMER STAFFER DID YOU THEN UNDO THAT BUT WITH THE HEIGHTENED CONCERN ABOUT HARASSMENT HERE WOMEN STARTED COMING FORWARD WITH ACCUSATIONS AGAINST THE SENATOR LAST NOVEMBER THE WASHINGTON POST PUBLISHED DETAILED ALLEGATIONS BY SEVERAL WOMEN WHO ONCE WORKED FOR AND WITH THE SENATOR SEN PACKWOOD'S INITIAL RESPONSE WAS TO ATTACK THE WOMEN'S CREDIBILITY BUT HE LATER APOLOGIZED FOR HIS ACTIONS THE ETHICS COMMITTEE HAS BROADENED THE SCOPE OF ITS INQUIRY TO INCLUDE NOT ONLY ALLEGATIONS OF SEXUAL MISCONDUCT AGAINST THE SENATOR BUT ALSO OF ALLEGED ATTEMPTS BY HIM AND HIS OFFICIAL STAFF TO INTIMIDATE AND DISCREDIT ACCUSERS THE OBSTACLES FACED BY WOMEN IN THESE ACCUSERS' POSITION ARE ILLUSTRATED BY THE STORIES OF MS BERTUSSI THE ONETIME AIDE TO FORMER REP BATES AND OF KARI TUPPER WHO HAS ACCUSED BROCK ADAMS THE FORMER DEMOCRATIC SENATOR FROM WASHINGTON STATE OF SEXUALLY MOLESTING HER WHILE HE WAS IN OFFICE MS BERTUSSI ALLEGED IN 1988 THAT REP BATES HAD AMONG OTHER THINGS STRADDLED HER LEG BETWEEN HIS LEGS IN FRONT OF OTHER STAFFERS AND COMMENTED ABOUT HER BREASTS TO A CONSTITUENT IN FRONT OF HER SHE MADE HER COMPLAINT TO THE HOUSE ETHICS COMMITTEE BECAUSE ITS OFFICE OF FAIR EMPLOYMENT PRACTICES HADN'T OPENED YET AROUND THE SAME TIME THREE OTHER WOMEN TOLD COMMITTEE STAFFERS THAT REP BATES HAD HARASSED THEM KAREN DRYDEN A FORMER LEGISLATIVE ASSISTANT TO REP BATES TOLD THE COMMITTEE THAT HE OFTEN WOULD TOUCH HER INAPPROPRIATELY ONE TIME IN HIS CAR HE PUT HIS HAND ON HER KNEE SHE SAID ANOTHER TIME IN THE OFFICE SHE SAID HE GRABBED HER BUTTOCKS SHE BELIEVED SHE WAS FIRED PARTLY BECAUSE SHE REFUSED HIS ADVANCES MR BATES SAYS SHE LEFT BECAUSE OF A SALARY DISPUTE A COMMITTEE REPORT SAID TWO OTHER FORMER WOMEN STAFFERS INTERVIEWED WHOSE NAMES WERE NOT RELEASED MADE SIMILAR ACCUSATIONS AGAINST THE CONGRESSMAN ALTHOUGH THEY DID NOT FILE COMPLAINTS REP BATES TOLD THE ETHICS COMMITTEE THAT EVEN THE MOST WILD ACCUSATIONS ARE GENERALLY FOUNDED ON A GRAIN OF TRUTH AND APOLOGIZED FOR ANY KIDDING AND FLIRTING' WHICH MAY HAVE BEEN MISCONSTRUED IN 1989 A YEAR AFTER THE INITIAL COMPLAINT HE RECEIVED THE LIGHTEST POSSIBLE SANCTION A LETTER OF REPROVAL AND AN ORDER TO APOLOGIZE TO MS DRYDEN AND MS BERTUSSI HE LOST A REELECTION BID IN 1990 IN AN INTERVIEW MR BATES SAYS HE NEVER MADE SEXUAL ADVANCES TOWARD ANY OF THE WOMEN HE SAYS HE HAD PROBABLY BEEN TOO FRIENDLY IN HIS COMMENTS TO ONE OF THE UNIDENTIFIED STAFFERS BUT DID NOT SEXUALLY HARASS HER THOSE FOUR GIRLS WERE BITTER AND DIDN'T LIKE ME HE SAYS AND MAYBE EVEN FELT THERE WERE SOME KINDS OF ADVANCES BUT THERE WEREN'T MR BATES SAYS THE ETHICS COMMITTEE'S INVESTIGATORY PROCESS WAS UNFAIR ADDING THERE WAS NEVER A HEARING OR A CHANCE TO FACE MY ACCUSERS IN THE CASE OF MS TUPPER AND SEN ADAMS SHE SAYS SHE HAD REBUFFED SEVERAL UNWANTED ADVANCES FROM THE SENATOR WHO WAS A LONGTIME FAMILY FRIEND BUT NOT SOMEONE FOR WHOM SHE WORKED WHEN HE INVITED HER TO DINNER IN MARCH 1987 SHE SAYS SHE DECIDED TO GO TO WARN HIM TO STOP MAKING ADVANCES OR SHE WOULD TELL HER PARENTS WHEN HE DIDN'T SHOW UP AT THE RESTAURANT SHE SAYS SHE ANGRILY DROVE TO HIS HOME TO TELL HIM MY PIECE SHE SAYS HE GAVE HER WHAT SHE LATER BELIEVED TO BE A DRUGLACED DRINK WHICH MADE HER GROGGY SHE SAYS SHE PASSED OUT AND AWOKE IN THE SENATOR'S BED AS HE FONDLED HER THOUGH SHE IMMEDIATELY WENT TO A HOSPITAL FOR TESTS AND MADE A POLICE REPORT SHE DIDN'T NAME THE SENATOR FEARING THE EFFECT OF PUBLICITY ON HERSELF AND HER SEATTLE FAMILY TWO MONTHS LATER HOWEVER SHE SOUGHT CRIMINAL CHARGES AGAINST MR ADAMS IT WAS HER WORD AGAINST HIS TESTS AT TWO HOSPITALS SHOWED NO EVIDENCE SHE HAD BEEN DRUGGED OR RAPED THOUGH IT WAS UNCLEAR WHETHER THE TESTS SCREENED FOR ALL DRUGS THAT COULD HAVE CAUSED HER TO PASS OUT MR ADAMS DENIED HER CHARGES SAYING THAT SHE WAS A FAMILY FRIEND WHO SPENT THE NIGHT AS A GUEST IN HIS HOME BECAUSE SHE FELT ILL THOUGH A DISTRICT OF COLUMBIA POLICE DETECTIVE RECOMMENDED THAT HE BE CHARGED WITH ASSAULT THE US ATTORNEY'S OFFICE FOR THE DISTRICT DECLINED TO PROSECUTE THERE WAS NO EVIDENCE OF A CRIME SAYS JOSEPH DIGENOVA THEN THE US ATTORNEY MS TUPPER AT THE TIME A LEGISLATIVE ASSISTANT FOR THE HOUSE SELECT COMMITTEE ON AGING DIDN'T TAKE HER COMPLAINT ABOUT THE SENATOR TO THE SENATE ETHICS COMMITTEE SHE DIDN'T THINK IT WOULD PRODUCE A SATISFACTORY RESULT SHE SAYS PARTLY BECAUSE SHE WASN'T HIS EMPLOYEE IN 1988 AS WASHINGTONIAN MAGAZINE PREPARED AN ARTICLE ON THE CASE SEN ADAMS CALLED A NEWS CONFERENCE TO DEFEND HIMSELF BUT IN THE MONTHS AFTER HER STORY WAS MADE PUBLIC IN 1988 MS TUPPER GOT CALLS FROM WOMEN WHO SAID THEY TOO HAD BEEN HARASSED BY SEN ADAMS SEN ADAMS FOUND AN UNLIKELY ALLY AT A 1989 ABORTIONRIGHTS RALLY IN SEATTLE A STATE NATIONAL ABORTION RIGHTS ACTION LEAGUE OFFICIAL PRAISED HIS COMMITMENT TO WOMEN'S RIGHTS ANGERED MS TUPPER WROTE TO THE GROUP SAYING THE SENATOR'S ACTIONS ARE IN TOTAL OPPOSITION TO EVERYTHING WOMEN'S RIGHTS' STANDS FOR BOARD PRESIDENT MARCY BLOOM WROTE BACK WITH SURPRISING CANDOR WE RECOGNIZE AND RESPECT YOUR FEELING OF ANGER AT BEING PERSONALLY SACRIFICED FOR THE PROCHOICE CAUSE LATER THE SEATTLE TIMES QUOTED MOLLY YARD THEN PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN AS SAYING MR ADAMS STOOD VERY TALL IN THE SENATE FOR THREE YEARS THE SEATTLE TIMES PURSUED THE STORIES OF OTHER WOMEN WHO INDEPENDENTLY ALLEGED SIMILAR TREATMENT BY SEN ADAMS SEVERAL BELIEVED THEY HAD BEEN DRUGGED ON MARCH 1 1992 THE NEWSPAPER DESCRIBED ALLEGATIONS OF EIGHT UNNAMED WOMEN WHO SIGNED STATEMENTS SWEARING TO THEIR STORIES AND AGREEING TO TESTIFY IN COURT SHOULD MR ADAMS SUE SHORTLY AFTER THAT THE SEATTLE POSTINTELLIGENCER REPORTED THAT ADVISERS TO SEN ADAMS HAD TRIED TO DISCREDIT MS TUPPER WITH UNFOUNDED ASSERTIONS THAT SHE WAS MENTALLY ILL THAT HER STORY WAS A REPUBLICAN PLOT AND THAT SHE HAD MADE SIMILAR CHARGES BEFORE MANY ATTEMPTS TO REACH MR ADAMS FOR THIS ARTICLE WERE UNSUCCESSFUL ELLEN GLOBOKAR HIS FORMER ADMINISTRATIVE ASSISTANT DECLINED TO CONTACT HIM SAYING I DON'T THINK HE'D HAVE ANY INTEREST IN RESPONDING THERE HASN'T BEEN A REPORTER IN FOUR YEARS WHO'S WRITTEN A FAIR STORY BEFORE HIS TERM EXPIRED SEN ADAMS WAS COMING UNDER PRESSURE TO RESIGN BUT WOMEN'S GROUPS WERE DEAFENINGLY SILENT MS TUPPER WROTE TO NOW PRESIDENT PATRICIA IRELAND NOW HADN'T ENDORSED MR ADAMS BUT WAS OTHERWISE MUTE ON THE CHARGES AGAINST HIM MS TUPPER'S LETTER WENT UNANSWERED MS IRELAND WHO SAYS SHE DOESN'T RECALL RECEIVING THE LETTER SAYS THAT THERE IS NO EXEMPTION FROM THE SEXUALHARASSMENT PROHIBITION FOR MEMBERS OF CONGRESS WHO VOTE RIGHT ON WOMEN'S ISSUES NOTING THAT NOW HAS CALLED ON SEN PACKWOOD TO RESIGN HOWEVER SHE SAYS NOW'S ROLE IS NOT TO TAKE INDIVIDUAL CASES AND PROVIDE SERVICE TO INDIVIDUAL WOMEN BUT TO CHANGE THE NATURE OF SOCIETY AND STRUCTURES THAT PRODUCE THOSE PROBLEMS STATE AND SEATTLE NOW GROUPS DID RALLY TO MS TUPPER'S SIDE THEY ASKED THE ETHICS COMMITTEE TO INVESTIGATE MR ADAMS LAST APRIL AND SAID MS TUPPER WOULD TESTIFY THE PANEL DECLINED TO INVESTIGATE SAYING THE COMMITTEE HAS NEVER RECEIVED FROM THE ALLEGED VICTIM ANY INDICATION OF A DESIRE TO INITIATE PROCEEDINGS IN THE CASE OF SEN PACKWOOD THOUGH THE ETHICS COMMITTEE LAUNCHED ITS INQUIRY AT THE REQUEST OF OREGON WOMEN'S GROUPS THAT GIVES MS TUPPER HOPE THAT SOME PROGRESS HAS BEEN MADE BUT SHE STILL BELIEVES THAT THE BALANCE OF POWER FAVORS THE CONGRESSMAN THERE ARE SUCH BUILTIN INEQUITIES WHY WOULD SOMEONE BOTHER SHE SAYS THAT WAS MY BOTTOM LINE AFTER THEY REFUSED TO INVESTIGATE MY CASE 9303100027 930310 WHO'S NEWS TELEDYNE NAMES EXAIR FORCE CHIEF AS ITS PRESIDENT BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES DONALD B RICE WHO WAS UNTIL RECENTLY THE SECRETARY OF THE AIR FORCE WILL JOIN AVIATION AND INDUSTRIAL PRODUCTS CONGLOMERATE TELEDYNE INC AS PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY ANNOUNCED THE MOVE IS PART OF A SERIES OF MAJOR SHIFTS AT TELEDYNE WHICH ANNOUNCED THAT CHAIRMAN GEORGE ROBERTS WILL RETIRE TO BE SUCCEEDED IN THAT JOB BY WILLIAM RUTLEDGE THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DR RICE 53 YEARS OLD ARRIVES AT TELEDYNE JUST AS THE COMPANY HAS BEEN DEALT SERIOUS BLOWS TO ITS CREDIBILITY THE COMPANY LATE LAST YEAR PLEADED GUILTY AND PAID A 175 MILLION FINE TO SETTLE CHARGES THAT IT DECEIVED THE GOVERNMENT ABOUT TESTING OF ELECTRONIC RELAYS LAST MONTH IT AGREED TO PAY 215 MILLION WITHOUT ADMITTING ANY WRONGDOING TO SETTLE ALLEGATIONS THAT IT FAILED TO PROPERLY TEST PARTS USED IN JET FIGHTERS AND OTHER EQUIPMENT IN A STATEMENT MR RUTLEDGE SAID DR RICE WILL OVERSEE ALL OPERATIONS AND WILL SUSTAIN OUR TRADITION OF ETHICAL BEHAVIOR A TELEDYNE SPOKESMAN SAID THE HIRING OF DR RICE WASN'T A BID TO CORRECT ANY PUBLIC IMPRESSIONS ABOUT THE COMPANY'S ETHICAL STANDARDS DR ROBERTS 74 HAS WORKED FOR TELEDYNE FOR 52 YEARS AND HAS SERVED AS CHAIRMAN SINCE 1991 WHEN HE TOOK OVER THE POST FROM HENRY SINGLETON MR RUTLEDGE 51 HAS ADVANCED STEADILY THROUGH THE UPPER RANKS OF THE COMPANY WHICH HE JOINED IN 1986 AFTER A LONG CAREER WITH CHICAGOBASED FMC CORP DR RICE SERVED AS AIR FORCE SECRETARY IN THE BUSH ADMINISTRATION FROM 1989 UNTIL EARLY THIS YEAR BEFORE THAT HE WAS PRESIDENT AND CHIEF EXECUTIVE OF RAND CORP FOR 17 YEARS IN NAMING DR RICE TO THE JOB MR RUTLEDGE CITED THE FORMER SECRETARY'S EXPERIENCE RUNNING LARGE TECHNOLOGYBASED ORGANIZATIONS SOME OBSERVERS SAW THE APPOINTMENT AS TIMELY FOR THE COMPANY AND ITS NEW PRESIDENT HE HAS A TRACK RECORD AT RAND OF ENTERING A COMPANY'S LIFE AT A TROUBLED MOMENT AND REBUILDING IT INTO THE BEST OF ITS KIND SAID MICHAEL D RICH RAND'S SENIOR VICE PRESIDENT RAND CREDITS DR RICE WITH HELPING THE SANTA MONICA CALIF RESEARCH ORGANIZATION RECOVER FROM THE DAMAGE DONE TO ITS CREDIBILITY BY RAND RESEARCHER DANIEL ELLSBERG'S UNAUTHORIZED RELEASE OF THE PENTAGON PAPERS A CLASSIFIED HISTORY OF THE VIETNAM WAR THE AFFAIR WAS THE DARKEST DAY AT RAND SAID MR RICH BECAUSE THE RELATIONSHIP WITH OUR PREEMINENT SPONSOR THE AIR FORCE WAS AT AN ALLTIME LOW TELEDYNE WHICH HAD SALES LAST YEAR OF 289 BILLION AFTER A FOURYEAR SLIDE FROM A PEAK OF 353 BILLION MAKES A RANGE OF AVIATION PRODUCTS FROM ELECTRONIC SYSTEMS TO REMOTELY PILOTED AIRCRAFT IT ALSO PRODUCES SPECIALTY METALS AND VARIOUS TYPES OF ENGINES AMONG OTHER INDUSTRIAL ITEMS AND MAKES SEVERAL CONSUMERPRODUCT LINES UNDER THE TELEDYNE WATER PIK AND OTHER BRAND NAMES 9303100026 930310 REVIEW & OUTLOOK EDITORIAL ASIDES SOAKING AD INFINITUM THE CENTER FOR THE CALIFORNIA TAXPAYER WASN'T IMPRESSED WHEN GOVERNOR PETE WILSON DECLARED AN END TO THE STATE'S DROUGHT THE CENTER'S WEEKLY REPORT NOTED INSTEAD OF DISBANDING THE SUPERFLUOUS DROUGHT INFORMATION CENTER' THE BUREAUCRACY WILL BE RENAMED THE WATER CONSERVATION CENTER' AND PRESUMABLY CONTINUE ON THROUGH THE NEXT BIBLICAL FLOOD 9303100025 930310 PLANNED SHEARSON DEAL COULD BE ONE OF WEILL'S BEST BY WALL STREET JOURNAL REPORTERS MICHAEL SICONOLFI LAURIE P COHEN AND WILLIAM POWER NEW YORK BUYING SHEARSON LEHMAN BROTHERS INC'S HUGE BROKERAGE OPERATION COULD TURN OUT TO BE ONE OF SANFORD WEILL'S BEST DEALS EVER MR WEILL CHAIRMAN OF PRIMERICA CORP REMAINED IN DISCUSSIONS YESTERDAY TO BUY SHEARSON'S BROKERAGE OPERATIONS THE NATION'S SECOND BIGGEST FOR ABOUT 1 BILLION FROM AMERICAN EXPRESS CO SHEARSON'S PARENT THE TRANSACTION WHICH WOULD INVOLVE A PAYMENT OF CASH AND SECURITIES IS EXPECTED TO BE ANNOUNCED WITHIN DAYS AFTER WHICH MR WEILL WILL START DISMISSING HUNDREDS OF EMPLOYEES AT SHEARSON PEOPLE FAMILIAR WITH THE DEAL SAID THE TRANSACTION WOULD BE AMONG THE BIGGEST BROKERAGEFIRM MERGERS EVER AND THE INDUSTRY'S FIRST BIG TAKEOVER OF THE 1990S THE PROPOSED DEAL WOULD MARK A MAJOR RETREAT FROM THE BROKERAGE BUSINESS BY AMERICAN EXPRESS WHICH ONCE SOUGHT TO BE A COMPREHENSIVE FINANCIALSERVICES SUPERMARKET AND WOULD DRASTICALLY BOOST PRIMERICA'S POWER ON WALL STREET INVESTORS CHEERED MR WEILL'S BID IN LATE NEW YORK STOCK EXCHANGE TRADING PRIMERICA STOCK HAD SURGED 475 OR 12 TO A RECORD 4475 A SHARE ON UNUSUALLY HEAVY VOLUME AMERICAN EXPRESS'S SHARES WERE QUOTED UP A LESS ROBUST 125 OR 42 TO 28 ON THE BIG BOARD IT WAS THE SECOND MOST ACTIVE STOCK ON ANY EXCHANGE YESTERDAY WITH VOLUME OF 52 MILLION SHARES WHY THE EUPHORIA FOR PRIMERICA IT'S A GREAT DEAL FOR PRIMERICA SAYS NED DAVIS AN ANALYST AT GERARD KLAUER MATTISON & CO HERE'S WHAT MR WEILL WOULD GET UNDER THE PROPOSED TERMS NEARLY 8500 SHEARSON BROKERS AN ASSETMANAGEMENT COMPANY THAT INVESTS 52 BILLION FOR CLIENTS AND AN AGREEMENT BY AMERICAN EXPRESS TO ASSUME VIRTUALLY ALL THE LEGAL LIABILITIES FROM PAST SHEARSON PROBLEMS THE COMBINED BROKERAGE HOUSE PRIMERICA ALREADY OWNS SMITH BARNEY HARRIS UPHAM & CO WOULD BE A JUGGERNAUT CHALLENGING MERRILL LYNCH & CO AS THE NATION'S BIGGEST BROKERAGE FIRM THE FIRM LIKELY TO BE CALLED SMITH BARNEYSHEARSON IS EXPECTED TO BE HEADED BY FRANK ZARB CURRENT SMITH BARNEY CHAIRMAN WITH 105 BILLION IN ASSETS MANAGED SMITH BARNEYSHEARSON ALSO WOULD BE THE NATION'S FOURTHLARGEST MUTUALFUND COMPANY BEHIND FIDELITY INVESTMENTS MERRILL AND VANGUARD GROUP THAT WOULD PROVIDE A STEADY STREAM OF REVENUE EVEN IF THE STOCK MARKETS SLIPPED THE SALE WOULDN'T INCLUDE SHEARSON'S LEHMAN BROTHERS INVESTMENTBANKING AND TRADING DIVISION OR RESEARCH STAFF OR THE 750 LEHMAN BROKERS CATERING TO WEALTHY INDIVIDUALS BUT DESPITE ITS SIZE SMITH BARNEYSHEARSON WOULD BE FAR DIFFERENT AND HAVE LESS CLOUT ON WALL STREET THAN RIVAL MERRILL THAT'S BECAUSE SMITH BARNEYSHEARSON WOULD HAVE A RELATIVELY MINOR PRESENCE IN INVESTMENT BANKING AN AREA THAT HAS PROVIDED HUGE PROFITS FOR BROKERAGE FIRMS IN RECENT YEARS MR WEILL'S BIG BET ON THE BROKERAGE BUSINESS IS IN SOME WAYS A THROWBACK TO THE 1970S WHEN WALL STREET FIRMS EITHER WERE INVESTMENTBANKING FIRMS OR BROKERAGE POWERHOUSES BRAINS OR BRAWN NOT BOTH SMITH BARNEY WAS RANKED A LOWLY 15TH ON WALL STREET IN ITS TOTAL STOCK AND BOND UNDERWRITINGS LAST YEAR WITH A 1 MARKET SHARE ACCORDING TO SECURITIES DATA CO BY CONTRAST MERRILL WITH BOTH POWERFUL BROKERAGE AND INVESTMENTBANKING DIVISIONS WAS RANKED NO 1 IN UNDERWRITING FOR THE FIFTH CONSECUTIVE YEAR WITH A 164 MARKET SHARE WHAT SMITH BARNEY'S INVESTMENT BANKING OPERATION DOES HAVE GOING FOR IT HOWEVER IS THE LEADERSHIP OF LEGENDARY TRADER LEWIS GLUCKSMAN A SMITH BARNEY VICE CHAIRMAN AND FORMER LEHMAN CHAIRMAN THERE REMAINS A SLIM CHANCE THAT THE DEAL COULD FALL APART AT THE LAST MINUTE THE PRICE TAG EXPECTED TO BE A BIT MORE THAN 1 BILLION WOULD BE PREDOMINANTLY CASH WITH THE REST IN SECURITIES MOST LIKELY SECURITIES CONVERTIBLE INTO SHARES OF PRIMERICA PEOPLE FAMILIAR WITH THE MATTER SAID INCLUDED IN THE PROPOSED DEAL IS THE ACQUISITION OF TWO OF SHEARSON'S BUILDINGS IN DOWNTOWN NEW YORK CITY SHEARSON LEHMAN BROTHERS PLAZA AN OFFICE TOWER THAT HOUSES ADMINISTRATIVE STAFF AND THE ADJACENT FAULKNER DATA CENTER BACKOFFICE OPERATIONS THE COMPANY IS ALSO BELIEVED TO BE PLANNING TO SELL THE SHEARSON NAME TO PRIMERICA THE PROPOSED AGREEMENT THAT HAS BEEN HAMMERED OUT BY LAWYERS FOR SHEARSON AND PRIMERICA CALLS FOR PRIMERICA TO PURCHASE THE ASSETS OF SHEARSON FOR 1 BILLION PLUS CHANGE AN ADVISER SAYS THE CHANGE WOULD RESULT FROM AN EARNOUT PROVISION BEING GRANTED TO AMERICAN EXPRESS THAT WOULD ENTITLE IT TO A PERCENTAGE OF SHEARSON'S FUTURE INCOME AND FROM SECURITIES THAT PRIMERICA WILL GIVE AMERICAN EXPRESS AS PART OF THE DEAL ACCORDING TO LAWYERS INVOLVED IN THE PROPOSED TRANSACTION MEANWHILE PRIMERICA IS TAKING STEPS TO AVOID THE PROBLEMS THAT RESULTED FROM SHEARSON'S ILLFATED 1988 PURCHASE OF EF HUTTON & CO WHERE SHEARSON ACCEPTED THE DEFUNCT FIRM'S LIABILITIES THE LEGAL PROBLEMS STEMMING FROM THE HUTTON DEAL CONTRIBUTED TO A FINANCIAL CRUNCH THAT NEARLY CRIPPLED SHEARSON UNDER THE PROPOSAL PRIMERICA WILL BUY SHEARSON'S ASSETS WHILE ACCEPTING FEW OF ITS LIABILITIES AMERICAN EXPRESS'S UNWILLINGNESS TO ABSORB SHEARSON'S LEGAL LIABILITIES WAS A MAJOR CAUSE OF THE COLLAPSE OF TALKS BETWEEN AMERICAN EXPRESS AND PRIMERICA IN 1990 WHEN ANOTHER PROPOSED DEAL FOR SHEARSON FELL THROUGH AT THE ELEVENTH HOUR MR WEILL IS EXPECTED TO QUICKLY DISMISS HUNDREDS AND PERHAPS MORE OF SHEARSON'S CORPORATE STAFF PRIMARILY IN THE BACK OFFICE THAT PROCESSES SECURITIES TRADES AS WELL AS IN THE LEGAL COMPLIANCE AND ADMINISTRATION AREAS LAWYERS SAY THE MOST PROFITABLE ASSET PRIMERICA WOULD GET IS SHEARSON'S MONEYMANAGEMENT UNIT SOME ANALYSTS ESTIMATE THAT THE ASSETMANAGEMENT UNIT MADE ABOUT 50 MILLION LAST YEAR THE 1 BILLION PRICE TAG IS NOT MUCH MORE THAN THE ROUGH EQUIVALENT OF THE EARNINGS MULTIPLE THE STOCK MARKET CURRENTLY ASSIGNS TO OTHER ASSETMANAGEMENT FIRMS ANALYSTS SAY THIS MEANS THAT MR WEILL WOULD GET SHEARSON'S FORCE OF NEARLY 9000 BROKERS RELATIVELY CHEAPLY THEY SAY BOTH PRIMERICA AND AMERICAN EXPRESS'S BOARDS ARE EXPECTED TO APPROVE THE SHEARSON DEAL AMONG THE MATTERS PENDING IS THE APPROVAL BY CREDITRATING CONCERNS LAWYERS SAY THIS COULD HAPPEN TOMORROW THEY SAY THE DEAL IS UNLIKELY TO ENCOUNTER SUBSTANTIAL PROBLEMS WITH RATING CONCERNS BECAUSE THE STOCK MARKET HAS REGISTERED ITS APPROVAL OF A SALE BY BIDDING UP SHARE PRICES YESTERDAY OF BOTH AMERICAN EXPRESS AND PRIMERICA TECHNICAL DETAILS INVOLVING THE SEPARATION OF SHEARSON FROM LEHMAN ARE ALSO STILL BEING WORKED OUT LEHMAN AND SHEARSON SHARE A SINGLE ORDER DESK AND PROCESSING DEPARTMENT LAWYERS SAY THEY EXPECT AN AGREEMENT TO BE APPROVED AND SIGNED BY LATE TODAY OR EARLY TOMORROW THEY SAY AMERICAN EXPRESS PLANS TO SPEND THE REST OF THIS YEAR SHORING UP LEHMAN'S BALANCE SHEET WITH ADDITIONAL CAPITAL AND THEN WILL BE LIKELY TO UNDERTAKE PLANS TO SPIN LEHMAN OFF OR SELL STOCK IN IT TO THE PUBLIC THE AGREEMENT IS LIKELY TO INCLUDE A PROVISION TYING SMITH BARNEYSHEARSON AND LEHMAN TOGETHER FOR THE NEXT TWO YEARS AS LEHMAN MAKES THE TRANSITION INTO AN INVESTMENT BANK CATERING TO INSTITUTIONS AND SMITH BARNEY BEEFS UP ITS SALES FORCE AS PART OF THE PROPOSED PROVISION SMITH BARNEY HAS SECURED A TWOYEAR DISTRIBUTION AGREEMENT WITH AMERICAN EXPRESS PEOPLE FAMILIAR WITH THE MATTER SAY THAT WOULD ALLOW THE FORMER SHEARSON BROKERS TEMPORARILY TO SELL STOCKS AND BONDS UNDERWRITTEN BY LEHMAN BROTHERS THIS IS TO ACCOMMODATE SHEARSON'S 8991 BROKERS WHO RELY ON COMMISSIONS FROM SELLING THE INITIAL PUBLIC OFFERINGS AND OTHER STOCK UNDERWRITINGS THAT UNTIL NOW HAVE BEEN GENERATED BY THE LEHMAN BROTHERS DIVISION LEHMAN WILL TREAT SMITH BARNEY AND SHEARSON VERY WELL PREDICTED ONE TRADER CLOSE TO THE SITUATION WITHOUT SUCH AN AGREEMENT SHEARSON BROKERS MAY HAVE REBELLED AT SUDDENLY BEING CUT OFF FROM THE PIPELINE OF STOCK UNDERWRITINGS GENERATED BY LEHMAN TRADERS SAID WITHIN TWO YEARS THE THINKING GOES SMITH BARNEYSHEARSON WILL HAVE GEARED UP ITSELF ENOUGH TO PROVIDE MORE STOCK UNDERWRITINGS WHAT LED TO THE PRIMERICASHEARSON DISCUSSIONS WAS MR WEILL'S CLOSE RELATIONSHIP WITH HARVEY GOLUB THE NEWLY APPOINTED CHAIRMAN OF AMERICAN EXPRESS MESSRS WEILL AND GOLUB HAVE HAD INFORMAL DISCUSSIONS AMONG THEMSELVES ABOUT A POSSIBLE ACQUISITION BY PRIMERICA OF SHEARSON'S BROKERAGE OPERATIONS FOR WEEKS BUT FORMAL TALKS BEGAN FEB 27 BY LATE THAT AFTERNOON MR WEILL PHONED HIS ATTORNEY AND CLOSEST ADVISER KENNETH BIALKIN A LAW PARTNER AT SKADDEN ARPS SLATE MEAGHER & FLOM AND SUMMONED HIM TO RETURN FROM ISRAEL IMMEDIATELY GREG STEINMETZ AND STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE 9303100024 930310 ABREAST OF THE MARKET STOCKS FINISH MIXED AS INDUSTRIALS EDGE UP 270 POINTS TO A RECORD BY ANITA RAGHAVAN AND CRAIG S SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED WITH THE DOW JONES INDUSTRIAL AVERAGE STUMBLING TO ANOTHER RECORD HIGH EVEN AS INTEREST RATES CLIMBED ANALYSTS SAID THEY WERE IMPRESSED BY THE MARKET'S ABILITY TO SHRUG OFF HIGHER INTEREST RATES AND DIGEST THE BURST OF PROFITTAKING THAT FOLLOWED MONDAY'S BIG GAINS THE DOW JONES INDUSTRIALS EDGED UP 270 POINTS TO 347212 IN HEAVY TRADING AFTER SURGING 6484 POINTS TO A RECORD ON MONDAY STANDARD & POOR'S 500STOCK INDEX SLIPPED 031 POINT TO 45440 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 006 TO A RECORD 25021 BOTH OF THESE INDEXES ROSE TO RECORDS MONDAY VOLUME ON THE BIG BOARD WAS EXTREMELY ROBUST WITH 290120000 CHANGING HANDS UP FROM MONDAY'S 274560000 SHARES ANALYSTS SAID THE BREADTH OF THE MARKET WAS ENCOURAGING WITH 1130 ISSUES ADVANCING AND 825 DECLINING WITH THE BOND MARKET CONSOLIDATING THE STOCK MARKET IS PUTTING IN A CREDIBLE SHOWING SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ BUT MR MCALINDEN SAID HE WORRIES THAT STOCKS COULD BE VULNERABLE TO A CORRECTION IN THE NEXT FEW WEEKS ESPECIALLY IF INTEREST RATES MOVE HIGHER ONE CATALYST FOR AN UPTICK IN RATES COULD BE THIS WEEK'S REPORT ON PRODUCER PRICES MR MCALINDEN SAID IF THE REPORT SUGGESTS THAT INFLATIONARY PRESSURES ARE HEATING UP THEN BOND PRICES COULD DROP JUST AS THEY DID FRIDAY MORNING WHEN THE EMPLOYMENT REPORT SHOWED SURPRISING STRENGTH BUT PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID THAT TALK OF ADDITIONAL SPENDING CUTS AS PART OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN IS BUOYING STOCKS NOW THE STOCK MARKET IS QUITE HAPPY THAT THE CLINTON ADMINISTRATION IS GOING BACK TO SPENDING CUTS TO REDUCE THE DEFICIT MR CANELO SAID MR CANELO SAID YESTERDAY'S DROP IN BOND PRICES WHILE STOCKS WERE MIXED SUGGESTS THERE ARE A NUMBER OF BIG MONEY MANAGERS WHO ARE CONTINUING TO PULL MONEY OUT OF BONDS AND POUR IT INTO STOCKS THOUGH MR CANELO SAID IT MAY BE A LITTLE LATE FOR INVESTORS TO BE JUMPING INTO STOCKS HE SUGGESTS THAT THOSE THAT DO LOOK PARTICULARLY AT THE DOW JONESTYPE OF STOCK MEANING BIG CAPITAL GOODS AND ENERGY STOCKS WHICH HAVE GENERALLY LAGGED BEHIND THE BROADER MARKET AMERICAN EXPRESS ADVANCED 1 1/4 TO 28 MAKING IT THE SECOND MOST ACTIVELY TRADED STOCK ON THE BIG BOARD THE FINANCIAL CONGLOMERATE CONFIRMED AS REPORTED YESTERDAY BY THE WALL STREET JOURNAL THAT IT IS ENGAGED IN DISCUSSIONS WITH PRIMERICA CONCERNING THE POSSIBLE SALE OF THE DOMESTIC BROKERAGE AND RELATED ASSET MANAGEMENT BUSINESS OF ITS SHEARSON LEHMAN BROTHERS UNIT THOUGH NO DEFINITIVE AGREEMENT HAS BEEN REACHED AMERICAN EXPRESS SAID PRIMERICA IS INTERESTED IN THE POSSIBILITY OF COMBINING THE RETAIL BROKERAGE BUSINESS OF ITS SMITH BARNEY HARRIS UPHAM UNIT WITH THAT OF SHEARSON PRIMERICA MEANWHILE JUMPED 4 3/4 TO 44 3/4 PAYLESS CASHWAYS CLIMBED 1 3/4 TO 14 1/2 THE SPECIALTY RETAILER SOLD 28 MILLION SHARES AT 1275 APIECE MONDAY THROUGH UNDERWRITERS LED BY GOLDMAN SACHS FISHERPRICE TUMBLED 3 TO 23 3/4 IN HEAVY TRADING AFTER AN ANALYST SCALED BACK FIRSTQUARTER EARNINGS AND REVENUE ESTIMATES FOR THE PRESCHOOL TOY MAKER NOT ONLY FISHER PRICE BUT TOY MAKERS IN GENERAL ARE IN FOR A TOUGH FIRST QUARTER NOTES SEAN MCGOWAN A GERARD KLAUER MATTISON ANALYST HE CUT HIS EARNINGS ESTIMATES BY NINE CENTS TO 14 CENTS A SHARE AND REVENUE PROJECTIONS BY 7 MILLION TO 140 MILLION ALZA GAINED 3 1/8 TO 33 5/8 IN HEAVY TRADING THE DRUG COMPANY RAISED EYEBROWS BY SCHEDULING A MEETING WITH ANALYSTS TOMORROW GIVING LESS THAN CUSTOMARY NOTICE THE COMPANY WOULDN'T SAY WHAT IT WANTED TO DISCUSS BUT SAID THE MEETING WOULDN'T BE NEGATIVE MARTIN GERSTEL ALZA COCHAIRMAN AND CHIEF EXECUTIVE WILL PRESIDE SAFEWAY SURGED 1 3/8 TO 14 AFTER ITS CHAIRMAN PETER MAGOWAN RELINQUISHED HIS POST AS CHIEF EXECUTIVE SAFEWAY'S BOARD ELECTED THE COMPANY'S PRESIDENT STEVE BURD TO ASSUME THE POST MR MAGOWAN WILL CONTINUE AS CHAIRMAN PARK ELECTROCHEMICAL JUMPED 2 TO 16 1/2 AFTER THE COMPANY BOUGHT BACK 558800 COMMON SHARES IN A PRIVATELY NEGOTIATED TRANSACTION IMCERA GROUP SLID 4 3/8 TO 26 1/8 THE COMPANY SAID IT EXPECTS FISCAL THIRDQUARTER PERSHARE EARNINGS TO BE SEVERAL CENTS BELOW THE 42 CENTS A SHARE IT EARNED ON CONTINUING OPERATIONS IN THE YEARAGO PERIOD THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX BEAT ITS OLD RECORD SET IN FEBRUARY 1992 THE INDEX ROSE 229 TO 41902 YESTERDAY SURPASSING ITS PREVIOUS RECORD OF 41899 AMEX VOLUME TOTALED 14991000 SHARES COMPARED WITH 14564000 YESTERDAY THERE WERE 318 ADVANCERS AND 287 DECLINERS 9303100023 930310 INTERNATIONAL GOVERNING PARTY IN MEXICO LIMITS ITS FUNDRAISING BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FACED WITH A WAVE OF CRITICISM OVER ITS PLAN TO RAISE MILLIONS OF DOLLARS FROM INDUSTRIALISTS MEXICO'S RULING PARTY SAID IT WOULD SET LIMITS ON THE SIZE OF POLITICAL CONTRIBUTIONS AND EXCLUDE CORPORATIONS FROM FUTURE FUNDRAISING EFFORTS GENARO BORREGO PRESIDENT OF THE INSTITUTIONAL REVOLUTIONARY PARTY OR PRI SAID THE PARTY WILL FROM NOW ON LIMIT CONTRIBUTIONS TO A MAXIMUM OF ONE MILLION NEW PESOS 323000 ONLY CONTRIBUTIONS FROM INDIVIDUALS AND SOCIAL ORGANIZATIONS WILL BE ACCEPTED AND THOSE DONATIONS WON'T BE TAXDEDUCTIBLE CORPORATIONS RELIGIOUS ASSOCIATIONS AND FOREIGN ENTITIES WILL BE PROHIBITED FROM MAKING CONTRIBUTIONS MR BORREGO SAID YESTERDAY'S MOVES WERE PART OF AN EFFORT TO CALM THE UPROAR PROVOKED BY THE PRI'S RECENTLY DISCLOSED PLAN TO RAISE 25 MILLION EACH FROM SUPPORT BLOCS COMPOSED OF VARIOUS BUSINESS LEADERS THE PLAN HAD AN AIRING AT A MILLIONAIRE'S BANQUET IN WHICH 30 TOP MEXICAN INDUSTRIALISTS DINED AT THE HOUSE OF FORMER FINANCE MINISTER ANTONIO ORTIZ MENA AS A PRI OFFICIAL SOLICITED CONTRIBUTIONS THE PUSH TO TAP BIG BUSINESS FOR PARTY FUNDS CAME AS PART OF AN EFFORT BY THE PRI'S YOUTHFUL NEW LEADERSHIP TO END THE TRADITIONAL PRACTICE OF USING PUBLIC MONEY TO PAY FOR CAMPAIGNS BUT THE NEW PLAN CAUSED AN EVEN BIGGER PROTEST FROM OPPOSITION PARTIES AND SOME PRI POLITICIANS WHO SAID THAT THE MAMMOTH CONTRIBUTIONS WOULD MAKE THE PARTY BEHOLDEN TO BIG BUSINESS AMONG PARTY MEMBERS AND PUBLIC OPINION WORRIES HAVE WITH REASON BEEN EXPRESSED IN THE SENSE THAT EXCESSIVE AND CONCENTRATED DONATIONS WOULD REPRESENT AN UNFAVORABLE INFLUENCE PRESIDENT CARLOS SALINAS DE GORTARI SAID IN A STATEMENT FOR THAT REASON IT IS NECESSARY THAT THERE ARE LIMITS TO THE CONTRIBUTIONS FROM INDIVIDUALS OR GROUPS TO THE FINANCING OF THE PARTIES IN YESTERDAY'S REMARKS MR BORREGO SAID THAT THE BUSINESSMEN'S DINNER WAS PART OF A LARGER EFFORT TO BROADEN THE PARTY'S FUNDING BASE AN EFFORT THAT INCLUDED RAFFLES AND CONTESTS HE EMPHASIZED THAT THE PARTY HAD ORIGINALLY SOUGHT THE 25 MILLION FROM GROUPS OF BUSINESSMEN RATHER THAN INDIVIDUAL INDUSTRIALISTS SOME INDIVIDUALS HOWEVER HAD REPORTEDLY OFFERED TO MAKE CONTRIBUTIONS OF SUCH MAGNITUDE ON THEIR OWN MR BORREGO SAID THAT IN THE FUTURE CONTRIBUTIONS WOULD BE DEPOSITED INTO A GENERAL PARTY TRUST FUND RATHER THAN DIRECTED TOWARD SPECIFIC CAMPAIGNS IN ORDER TO LIMIT THE INFLUENCE CONTRIBUTORS COULD HAVE OVER INDIVIDUAL POLITICIANS 9303100022 930310 BUSINESS BRIEF LITTON INDUSTRIES INC RAYTHEON MICROWAVE LINE BOUGHT FOR UNDISCLOSED SUM LITTON INDUSTRIES INC SAID IT ACQUIRED RAYTHEON CO'S MICROWAVE POWERTUBE BUSINESS IN WALTHAM MASS TERMS WEREN'T DISCLOSED THE ACQUISITION WHICH INCLUDES A PRODUCT LINE AND EQUIPMENT IS EXPECTED TO INCREASE CURRENT SALES OF MICROWAVE TUBES BY ABOUT 30 MILLION LITTON SAID THE COMPANY BASED IN BEVERLY HILLS CALIF HAD TOTAL SALES OF 569 BILLION IN THE YEAR ENDED JULY 31 A SPOKESMAN FOR RAYTHEON BASED IN LEXINGTON MASS SAID THE BUSINESS HAS ABOUT 300 EMPLOYEES THEIR POSITIONS ARE EXPECTED TO BE PHASED OUT BY THE END OF JUNE THE SPOKESMAN SAID RAYTHEON WILL TRY TO FIND OTHER POSITIONS IN THE COMPANY FOR SOME EMPLOYEES AND A FEW MAY BE OFFERED JOBS BY LITTON LITTON SAID IT PLANS TO INTEGRATE THE RAYTHEON OPERATIONS INTO TWO OTHER PLANTS IN SAN CARLOS CALIF AND WILLIAMSPORT PA ABOUT 170 EMPLOYEES WILL BE ADDED AT THE TWO LOCATIONS A SPOKESMAN SAID THE TUBES ARE USED IN AIRCRAFT MISSILE AND SHIPBOARD SYSTEMS AS WELL AS IN AIRTRAFFICCONTROL RADAR 9303100021 930310 INSIDE TRACK IS WALL STREET ON EDGE CHECK INSIDERS' STOCK SALES BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME OF THE PEOPLE WHO KNOW THE STOCK MARKET BEST HAVE BEEN GETTING OUT OF IT OR AT LEAST GETTING OUT OF SHARES OF THEIR OWN COMPANIES BROKERAGEINDUSTRY EXECUTIVES DIRECTORS AND OTHER MAJOR SHAREHOLDERS HELD 32 MILLION FEWER SHARES OF THEIR OWN COMPANIES' STOCK AT THE END OF FEBRUARY THAN THEY HAD THREE MONTHS EARLIER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW LATE LAST YEAR AND EARLY THIS YEAR INDUSTRY EXECUTIVES AND OTHER INSIDERS AT AG EDWARDS INC RAYMOND JAMES FINANCIAL BEAR STEARNS COS PAINEWEBBER GROUP AND CHARLES SCHWAB CORP TRIMMED THEIR HOLDINGS THE FILINGS SHOW INVESTORS MAY WONDER WHETHER PAYING ATTENTION TO STOCKMARKET TRADING BY INSIDERS CAN REALLY GIVE THEM A CLUE ABOUT THE OUTLOOK FOR A COMPANY OR AN INDUSTRY GROUP AN ANALYSIS OF SEC FILINGS ON INSIDER ACTIVITY IN 71 INDUSTRIES IN THE 12 MONTHS ENDED FEB 28 INDICATES THAT THE ANSWER MAY BE YES EXECUTIVES WORKING IN SOME OF 1992'S WORSTPERFORMING INDUSTRIES APPAREL RETAILING TRUCKING COMPUTERS GOT OUT IN DROVES BEFORE THE GOING GOT ROUGH THE SEC FILINGS SHOW CONVERSELY INSIDERS AT SEMICONDUCTOR COMPANIES WERE BUYING SHARES BEFORE THAT SECTOR'S RECENT RALLY WHAT HAVE INSIDERS BEEN DOING LATELY RECENTLY THE PACE OF INSIDER SELLING HAS BEEN ACCELERATING IN THE BIOTECHNOLOGY SECTOR ACCORDING TO SEC FILINGS WITH INSIDERS AT SUCH FIRMS AS MYCOGEN CORP AND CYTOGEN CORP TRIMMING THEIR HOLDINGS FOR THE THREE MONTHS ENDED IN FEBRUARY INSIDERS AT BIOTECHNOLOGY COMPANIES SOLD 75653 MORE SHARES THAN THEY BOUGHT THE INDUSTRY'S QUARTERLY AVERAGE NET SALES IN THE PREVIOUS NINE MONTHS WERE 15601 SHARES IN THE PAST THREE MONTHS APPARELINDUSTRY INSIDERS HAVE PICKED UP THE PACE OF THEIR SELLING ABOVE 1992 LEVELS EXECUTIVES AT DRESS BARN INC AND STRAWBRIDGE & CLOTHIER AMONG OTHERS SOLD SHARES IN RECENT WEEKS FILINGS SHOW SIMILARLY INSIDERS IN THE ELECTRICALUTILITY INDUSTRY SOLD 176174 MORE SHARES THAN THEY BOUGHT IN THE THREE MONTHS ENDED IN FEBRUARY ACCORDING TO SEC FILINGS UP 10 FROM THE QUARTERLY AVERAGE IN THE PREVIOUS NINE MONTHS AS FOR THE SALES BY THE WALL STREET INSIDERS THEY WERE PARTICULARLY STRIKING BECAUSE THEY SHOW AN APPARENT CHANGE IN SENTIMENT FOR THE PREVIOUS NINE MONTHS SECURITIESINDUSTRY INSIDERS WERE NET ACCUMULATORS OF THEIR COMPANIES' SHARES THEY'RE NOT THE ONLY EXECUTIVES WHO HAVE SWITCHED CAMPS INSIDERS IN THE RECREATIONALVEHICLE AND OFFICEEQUIPMENT INDUSTRIES HAVE ALSO GONE FROM BEING NET BUYERS OF THEIR COMPANIES' SHARES TO BEING NET SELLERS IN THE PAST THREE MONTHS SEC FILINGS SHOW BUT THERE ARE ALSO BULLS OUT THERE IN THE LATEST THREE MONTHS NEWSPAPERINDUSTRY INSIDERS AT ABOUT A DOZEN PUBLISHING COMPANIES INCLUDING GANNETT CO TRIBUNE CO AND DOW JONES & CO PUBLISHER OF THIS NEWSPAPER SNAPPED UP A NET 32 MILLION SHARES OF THEIR COMPANIES' STOCK NET PURCHASES BY TOBACCOINDUSTRY EXECUTIVES TOTALED 16 MILLION SHARES WHILE OIL DRILLERS MADE NET PURCHASES OF 18 MILLION SHARES FOR MOST OF LAST YEAR ACCORDING TO SEC FILINGS INSIDERS IN ALL THREE INDUSTRIES HAD BEEN SELLING NOT BUYING NET PURCHASES AND SALES OF THEIR COMPANIES' STOCKS BY EXECUTIVES DIRECTORS AND OTHER INSIDERS IN THE THREE MONTHS THROUGH FEBRUARY IN THOUSANDS OF SHARES NOTE NET BUYING IS THE NUMBER OF SHARES INSIDERS BOUGHT IN THE PERIOD AFTER SALES WERE SUBTRACTED NET SELLING IS THE NUMBER OF SHARES SOLD AFTER PURCHASES AND OPTIONS EXERCISES ARE SUBTRACTED OPTIONS EXERCISES ARE COUNTED AS BUYING ONEHALF A SHARE 9303100020 930310 LETTERS TO THE EDITOR THE FEAR OF FALSE ACCUSATION DR RICHARD A GARDNER'S PLEA FOR PEOPLE FALSELY ACCUSED OF SEXUALLY ABUSING CHILDREN MERITS HEED MODERN WITCH HUNT CHILD ABUSE CHARGES EDITORIAL PAGE FEB 22 AS A CHILD PSYCHIATRIST WITH EXPERIENCE IN FORENSIC MATTERS I HAVE HAD THE OPPORTUNITY OF WORKING AS A COURTAPPOINTED EXPERT AS WELL AS A PRIVATELY RETAINED EXPERT IN MANY DISPUTED CUSTODY BATTLES I TOO HAVE WITNESSED THE EXPLOSIVE INCREASE IN ALLEGATIONS OF SEXUAL ABUSE IN THE PAST DECADE MANY OF THE ALLEGATIONS BY VICTIMS ARE DIFFICULT TO VALIDATE BUT BECAUSE OF SOCIETY'S SENSITIVITY TO AND REVULSION OF PEDOPHILIA RESPONSE TO THE ALLEGED PERPETRATOR IS OFTEN PUNITIVE AND VINDICTIVE EVEN IN THOSE CASES WHERE FABRICATION DISTORTION AND MALICE ARE DEMONSTRABLE AND THE ALLEGATIONS WITHDRAWN OR PROVED TO BE FALSE THE ALLEGED ABUSER'S LIFE IS CHANGED IRREVOCABLY THE STIGMA OF BEING ACCUSED AND HAVING TO ENDURE THE PROCESS OF DEFENDING ONESELF AGAINST RECRIMINATION HAS A NEGATIVE IMPACT IN ALL AREAS OF THAT PERSON'S LIFE HOME WORK AND SOCIALLY MANY OF THE CASES WITH WHICH I HAVE HAD CONTACT CENTER AROUND DISSATISFACTION OVER MONETARY ISSUES OR PROPERTY SETTLEMENTS THE UNHAPPY SPOUSE USUALLY THE MOTHER USES ALLEGATIONS OF SEXUAL ABUSE AS RETRIBUTION FOR HAVING BEEN SLIGHTED MONETARILY CONSEQUENTLY IN ADDITION TO THE SUGGESTIONS DR GARDNER OFFERS CONCERNING THE MONDALE ACT I WOULD PROPOSE THAT INDIVIDUALS WHO FALSELY ACCUSE OTHERS WITH SEXUAL ABUSE SHOULD BE SUBJECT TO PUNITIVE AND REHABILITATIVE MONETARY JUDGMENTS DR GARDNER PROPOSES MODIFICATION OF THE CHILD ABUSE PREVENTION AND TREATMENT ACT IN LARGE PART BECAUSE HE STATES THAT CHILD SEXUAL ABUSE ACCUSATIONS ARE BURGEONING AND INFERS THAT THE NUMBER OF CHILD SEXUAL ABUSE ALLEGATIONS IN THE CONTEXT OF CUSTODY DISPUTES ARE ESCALATING IN FACT A RECENT STUDY SUGGESTS THE ACTUAL INCIDENCE OF SEXUAL ABUSE ALLEGATIONS IN FAMILIES WITH CUSTODY AND VISITATION DISPUTES IS LESS THAN 2 MUCH LESS THAN MEDIA ACCOUNTS HAVE SUGGESTED THIS STUDY NOTES THAT 50 OF THE ALLEGATIONS THAT AROSE WITHIN THE CONTEXT OF CUSTODY DISPUTES WERE BELIEVED TO BE GENUINE ANOTHER RECENT REPORT REVEALS THAT AFTER APPLICATION OF A SYSTEMATIC PROCESS OF VALIDATION 444 OF CHILD SEXUAL ABUSE ALLEGATIONS WITHIN THE CONTEXT OF A CUSTODY EVALUATION WERE FOUNDED IN THIS CLINICAL STUDY 165 OF THE CASES WERE CATEGORIZED AS FICTITIOUS 11 OF THE CASES LACKED SUFFICIENT INFORMATION TO MAKE A DETERMINATION AND 28 WERE CATEGORIZED AS UNSUBSTANTIATED SUSPICIONS IN PRESENTING HIS OWN CASE REPORTS WITH NO REFERENCE TO AVAILABLE RESEARCH IN CHILD SEXUAL ABUSE ALLEGATIONS DR GARDNER MAY BE CONTRIBUTING TO THE HYSTERIA ABOUT WHICH HE WRITES DR GARDNER IS ON TARGET DESPAIRING OF FEDERAL LAW CHANGES FAMILIES FOR FREEDOM WAS FORMED BY TWO FAMILIES IN CHESTER COUNTY PA AND EXPANDED TO MORE THAN 40 FAMILIES IN JUST FIVE MONTHS IT IS DESIGNED TO COMBAT THE EVILS DR GARDNER SO ELOQUENTLY DESCRIBES FALSE ALLEGATIONS OF CHILD ABUSE THAT HAVE LEAD TO PHYSICAL EMOTIONAL AND FINANCIAL DEVASTATION OF FAMILIES FAMILIES FOR FREEDOM DISCOVERED THAT THE MANDATED LAWS ARE IMPLEMENTED IN MANY WAYS IN CHESTER COUNTY THE EVILS ARE UNBELIEVABLE DIAMETRICALLY OPPOSED TO THE WELLMEANING INTENTIONS OF THE LEGISLATORS HERE A POWERFUL CENTRAL CHILDREN/YOUTH SERVICE CYS HAS ENGULFED A LEGION OF INNOCENT CITIZENS WITH EACH ALLEGATION OF ABUSE RESULTING IN INCREASED FEDERAL AND COMMONWEALTH FUNDS TO PERPETUATE A GROWING MONOLITHIC POWER BEYOND THE REACH OF THE VOTING TAXPAYERS IMPLEMENTATION OF THE FEDERAL LAWS VARIES FROM COUNTY TO COUNTY IN THIS STATE THEREFORE WE ARE WORKING AT THE COUNTY LEVEL TO REMOVE THE LEADERSHIP OF THE AGENCY THE POORLY TRAINED CASEWORKERS TAINTED CYSEMPLOYED PSYCHOLOGISTS AND LAWYERS BIASED MASTERS AND RUBBERSTAMPING JUDGES CYS OF CHESTER COUNTY UNJUSTLY HAS INCARCERATED INNOCENT CHILDREN IN FOSTER CARE INSTITUTIONS THE ONLY ORPHANAGES IN THE WORLD FOR CHILDREN WITH PARENTS RECOURSE FOR OUR GROUP IS CURRENTLY IN FEDERAL COURTS TWO SUITS ARE BEING HEARD NOW OTHERS ARE TO FOLLOW TO TRY TO HALT THE ABRIDGMENT OF OUR CONSTITUTIONAL RIGHTS EVERY CITIZEN IN THIS COUNTRY SHOULD BE HELD ACCOUNTABLE FOR HIS ACTIONS INEPT CASEWORKERS LAWYERS PSYCHOLOGISTS AND JUDGES SHOULD NOT BE ALLOWED TO HIDE BEHIND THE MASK OF IMMUNITY IT IS TIME THE LEGISLATORS ARE TAKEN TO TASK TO CHANGE THE MONDALE ACT I AM DEEPLY TROUBLED BY THE MESSAGE IN MODERN WITCH HUNT AND DECEPTION IN THE MOVIES ON THE NEWS BY DOROTHY RABINOWITZ LEISURE & ARTS FEB 22 I AM A 35YEAROLD WOMAN THE MAN WHO RAPED AND SODOMIZED SIX OF MY FEMALE RELATIVES JUST BEGAN A THREEYEAR PRISON SENTENCE AS HIS NIECE I WAS ONE OF HIS EARLY VICTIMS I VAGUELY RECALLED MY ABUSE DURING MY TEENAGE YEARS AND QUIZZED MY SISTER AT THE TIME SHE RECALLED NOTHING I REMAINED SILENT BUT ALWAYS KEPT MY DISTANCE FROM THIS UNCLE SIXTEEN YEARS LATER MY SISTER REVEALED THE NERVOUS BREAKDOWN SHE'D JUST RECOVERED FROM AS A RESULT OF RETRIEVAL OF MEMORIES INVOLVING THIS MAN SHE DID NOT TRY TO REMEMBER SHE HAD NO CLUE OTHER THAN THE PROFOUND DREAD THAT HAUNTED HER THE REPRESSED MEMORIES INDUCED A TRAUMA THAT SHE WOULD HAVE GLADLY TRADED FOR A DIFFERENT DIAGNOSIS SHE WAS A SUCCESSFUL ATTORNEY AND HAPPILY MARRIED UNTIL THIS DERAILED HER LIFE WE SOOTHED EACH OTHER'S WOUNDS AND DECIDED NOT TO TAKE LEGAL ACTION INCREASED AWARENESS IS A WONDERFUL THING HOWEVER ONE OF OUR UNCLE'S MORE RECENT VICTIMS WAS A NINEYEAROLD GRANDDAUGHTER SHE'D BENEFITED FROM SOCIETY'S AWAKENING ON THIS PREVIOUSLY UNSPOKEN TABOO WHEN SHE CONFRONTED HER PARENTS SHE PUT IN MOTION EVENTS THAT LED TO HIS PLEADING GUILTY TO SIX FELONIES ONE FOR EVERY VICTIM DATING FROM THE EARLY '60S TO THE EARLY '90S THANK GOD THE PENDULUM HAS SWUNG TOWARD CHILDREN AND AWARENESS HOW MANY ERRONEOUS CHARGES ARE FILED UNDOUBTEDLY A FEW BUT FROM THE MOMENT THE OTHER VICTIMS STEPPED FORWARD IN OUR CASE THERE WAS A THREAD THAT LINKED EACH ONE OF US WE NEVER QUESTIONED EACH OTHER'S CREDIBILITY WE ALL KNEW THE SAD AWFUL TRUTH DR GARDNER STATES THAT CURRENT MISALLEGATIONS OF CHILD ABUSE CONSTITUTE A THIRD GREAT WAVE OF HYSTERIA FOLLOWING THE SALEM WITCH TRIALS AND THE MCCARTHY HEARINGS DR GARDNER PROVIDES EMPIRICAL JUSTIFICATION FOR HIS CLAIM IN THE FORM OF TWO ANECDOTES FROM HIS OWN PRACTICE WHILE EMOTIONALLY COMPELLING SUCH EXAMPLES ARE HARDLY REPRESENTATIVE OF TYPICAL OUTCOMES IN CHILD WELFARE THERE ARE APPROXIMATELY TWO MILLION REPORTS OF CHILD ABUSE OR NEGLECT MADE EACH YEAR IN THE US IF THE LEVEL OF HYSTERIA POSTULATED BY DR GARDNER DID INDEED EXIST OUR COURTS WOULD BE DELUGED BY A FLOOD OF CHARGES THAT WOULD MAKE CURRENT JUDICIAL CASELOADS LOOK MEAGER BY COMPARISON THE SIMPLE TRUTH OF COURSE IS THAT WHEN MILLIONS OF REPORTS ARE PROCESSED EACH YEAR SOME EGREGIOUS MISTAKES WILL OCCUR SUCH ERRORS ARE BOTH TRAGIC AND EXCEEDINGLY DIFFICULT TO AVOID FOCUSING ON THE RELATIVELY FEW CASES OF IRRESPONSIBLE OR OVERZEALOUS ACTION MAY BE AN EFFECTIVE ATTENTIONGETTING DEVICE THE MEDIA DO THIS OFTEN ENOUGH BUT IT DOES NOT CONSTITUTE PROOF OF A PROBLEM OF EPIDEMIC PROPORTIONS CHILD WELFARE AGENCIES ARE DESPERATELY UNDERFUNDED AND OVERWORKED THE IDEA THAT SUCH AGENCIES HAVE THE TIME OR INCLINATION TO PURSUE BOTH ROUTINELY AND EXUBERANTLY THE MOST FRIVOLOUS AND ABSURD ACCUSATIONS SIMPLY DOES NOT MESH WITH REALITY DR GARDNER'S TERM CHILD ABUSE ESTABLISHMENT IS MERE INFLAMMATORY JARGON IN MANY AREAS RELATIONSHIPS AMONG SOCIAL WORKERS THE COURTS AND POLICE ARE BARELY CIVIL HIS VIEW OF A WIDESPREAD CONSPIRATORIAL BOND AMONG SUCH AGENCIES IS HARD TO CREDIT DR GARDNER MAKES NUMEROUS ERRONEOUS STATEMENTS REGARDING THE CHILD ABUSE PREVENTION AND TREATMENT ACT CAPTA FEDERAL FUNDING UNDER CAPTA IS NOT MADE AVAILABLE TO MATCH STATE FUNDING CAPTA FUNDING TO A STATE IS ALLOCATED BY A FORMULA THAT INCLUDES THE STATE'S POPULATION OF CHILDREN BUT NOT THE NUMBER OF ITS CHILD ABUSE CASES OR THE AMOUNT IT SPENDS ON THESE CASES MOREOVER CAPTA FUNDS CURRENTLY AVAILABLE FOR THE TWO RELEVANT STATE GRANT PROGRAMS TOTAL LESS THAN 30 MILLION IN 1992 33 STATES AND INSULAR AREAS RECEIVED LESS THAN 500000 AND THE LARGEST AWARD WAS LESS THAN 23 MILLION DR GARDNER ALSO ERRED IN CLAIMING THAT EVALUATORS WHO CONCLUDE THAT ABUSE HAS OCCURRED SET IN MOTION EVENTS THAT BRING THEIR OFFICES FEDERAL FUNDS FEDERAL FUNDS UNDER CAPTA ARE CAPPED REGARDLESS OF THE NUMBER OF SUSPECTED CHILD ABUSE CASES GRANTS ARE AWARDED TO AGENCIES NOT TO SPECIFIC EVALUATORS SOLELY FOR PURPOSES OF CONDUCTING RESEARCH DEMONSTRATION PROJECTS TRAINING OR TECHNICAL ASSISTANCE CAPTA FUNDING IS UNRELATED TO EVALUATORS OR THEIR CONCLUSIONS ABOUT CASES HIS CLAIMS THAT STATE LAWS THAT PROVIDE IMMUNITY FOR THOSE REPORTING SUSPECTED CHILD ABUSE AND NEGLECT AND THE CHILD PROTECTION PROFESSIONALS WHO INVESTIGATE SUCH REPORTS HAVE WORKED TO ENCOURAGE PEOPLE TO BRING FRIVOLOUS AND MALICIOUS CHARGES ARE LIKEWISE ERRONEOUS IMMUNITY IS EXTENDED ONLY TO THOSE WHO REPORT THEIR SUSPICIONS IN GOOD FAITH PROFESSIONALS ARE REQUIRED TO REPORT CASES THAT THEY SUSPECT NOT THOSE THEY KNOW TO BE FALSE 9303100019 930310 ECONOMY DEMOCRATS PUSH MORE SPENDING CUTS BUT SO FAR FAIL TO GET DOWN TO SPECIFICS BY JOHN HARWOOD AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ON CAPITOL HILL HAVE RESPONDED TO PRESSURE FOR MORE SPENDING CUTS BUT THEY MAY YET STUMBLE OVER PRESIDENT CLINTON'S CHALLENGE THAT CRITICS OF HIS PLAN SHOULD BE SPECIFIC SENATE BUDGET COMMITTEE DEMOCRATS ARE SCHEDULED TODAY TO BEGIN MARKING UP A BUDGET RESOLUTION THAT WOULD CUT THE DEFICIT SOME 90 BILLION MORE OVER FIVE YEARS THAN MR CLINTON HAS PROPOSED ABOUT HALF OF THE ADDITIONAL SAVINGS WOULD COME FROM DEEPER SPENDING CUTS AND THE REST FROM TAX INCREASES AND OTHER SOURCES HOUSE BUDGET COMMITTEE DEMOCRATS MEANWHILE SAY THEIR BUDGET PLAN WOULD REDUCE THE DEFICIT 63 BILLION MORE THAN THE WHITE HOUSE PLAN ALL THROUGH ADDITIONAL SPENDING CUTS BUT BOTH PANELS SAY THEY MOSTLY WOULD PROTECT THE PRESIDENT'S AMBITIOUS NEW SPENDING PROPOSALS ADMINISTRATION OFFICIALS AND LAWMAKERS IN BOTH PARTIES ACKNOWLEDGED HOWEVER THAT THE BUDGET RESOLUTIONS WOULD ONLY ESTABLISH THE OUTLINES OF THE GOVERNMENT'S SPENDING PRIORITIES ACTUAL CUTS IN PROGRAMS STILL WOULD HAVE TO BE WORKED OUT IT SOUNDS GOOD IN THE HEADLINES SENATE BUDGET COMMITTEE MEMBER ERNEST HOLLINGS A SOUTH CAROLINA DEMOCRAT SAID OF THE NEW DEFICITREDUCTION GOALS LET'S SEE HOW REAL THAT IS SEN PETE DOMENICI OF NEW MEXICO RANKING REPUBLICAN ON THE SENATE BUDGET PANEL TOLD COMMITTEE DEMOCRATS THAT WE WILL ASK YOU FOR SPECIFICS ABOUT ADDITIONAL CUTS BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN IS SET TO UNVEIL THE BUDGET RESOLUTION HAMMERED OUT BY PANEL DEMOCRATS TODAY FOR THEIR PART REPUBLICANS ON THE HOUSE BUDGET COMMITTEE LAST NIGHT PRODUCED FAR MORE SPECIFIC PROPOSALS THAN ANYTHING THE DEMOCRATS HAVE MADE PUBLIC A DETAILED SET OF SPENDING CUTS THEY SAY WOULD SHRINK THE DEFICIT BY 429 BILLION OVER FIVE YEARS WITHOUT TAX INCREASES WE HAVE MET THE CHALLENGE THE PRESIDENT LAID OUT SAID OHIO REP JOHN KASICH THE COMMITTEE'S RANKING REPUBLICAN AMONG OTHER THINGS THE GOP LAWMAKERS WOULD RAISE MEDICARE PREMIUMS AND DEDUCTIBLES FOR SENIOR CITIZENS WITH INCOMES OVER 100000 FORCE MEDICAID RECIPIENTS INTO SOCALLED MANAGEDCARE HEALTH PROGRAMS SLASH 162000 FEDERAL JOBS AND RAISE THE FEDERAL RETIREMENT AGE TO 62 FROM 55 HOUSE DEMOCRATS HAVEN'T BEEN VERY SPECIFIC SO FAR LEAVING SOME CUTS COMPLETELY UNSPECIFIED AND MERELY IMPLYING OTHERS IN REDUCED ALLOCATIONS FOR BROAD CATEGORIES THE BUDGET RESOLUTION BEFORE THE HOUSE PANEL FOR EXAMPLE WOULD REDUCE 1994 SPENDING BY 500 MILLION FOR SPACE AND SCIENCE AND 300 MILLION FOR TRANSPORTATION BUT IT DOESN'T SAY WHICH PROGRAMS WOULD BE HIT TO ACHIEVE THE SAVINGS THOUGH THE WHITE HOUSE HAS EXPRESSED SUPPORT FOR THE LAWMAKERS' EFFORTS TO FIND FURTHER DEFICITREDUCTION MEASURES BUDGET DIRECTOR LEON PANETTA EXPRESSED SKEPTICISM THAT DEEPER CUTS WOULD BE SO EASY TO IDENTIFY IF DISCRETIONARY SPENDING IS PARED TOO MUCH YOU BEGIN TO IMPACT ON EDUCATION ON TRANSPORTATION ON THE KINDS OF PRIORITIES THAT I THINK ALL OF US ARE CONCERNED ABOUT HE TOLD THE HOUSE WAYS AND MEANS COMMITTEE SO I'M NOT SURE THERE'S A LOT MORE ROOM THERE ONE OBVIOUS CASUALTY AS MR PANETTA ACKNOWLEDGED MAY BE TIMELY IMPLEMENTATION OF MR CLINTON'S INVESTMENT SPENDING PACKAGE OF 144 BILLION OVER FIVE YEARS THOUGH HOUSE BUDGET CHAIRMAN MARTIN SABO D MINN SAID HE'D KEEP THE INVESTMENT PACKAGE LARGELY INTACT MR SASSER'S PLAN IS EXPECTED TO PROPOSE DEFERRING AS MUCH AS 40 BILLION OF THE TOTAL THE CHAIRMAN'S PROPOSAL ALSO WOULD RAISE ADDITIONAL REVENUE BY IMPOSING USER FEES AND CLOSING SOME TAX LOOPHOLES AMONG OTHER THINGS MR SASSER SAYS HE WANTS TO LIMIT DEDUCTIONS TAKEN BY UPPERINCOME TAXPAYERS SEPARATELY MR PANETTA SAID THE WHITE HOUSE FIGURES IT WILL TAKE ANOTHER 34 BILLION THROUGH 1998 FOR THE RESOLUTION TRUST CORP TO CLEAN UP THE SAVINGS AND LOAN MESS THE ADMINISTRATION HE EXPLAINED HAS ALREADY BUILT THAT AMOUNT INTO ITS DEFICIT PROJECTIONS MR PANETTA ADDED THAT THE 34 BILLION MAY TURN OUT TO BE MORE THAN ADEQUATE BECAUSE IT LOOKS LIKE WE'VE TURNED THE CORNER ON THE S&L CLEANUP LATER WHILE SPEAKING WITH REPORTERS MR PANETTA SAID HE EXPECTED THE TREASURY TO MAKE AN OFFICIAL RTC BUDGET REQUEST SOON THAT IS IN THAT BALLPARK OF 34 BILLION A TREASURY SPOKESMAN SAID HOWEVER THAT NO DECISIONS HAVE BEEN MADE YET AS TO TIMING OR SPENDING LEVELS MR PANETTA ALSO SAID HE HAS ASKED LABOR SECRETARY ROBERT REICH TO PUT TOGETHER A TASK FORCE TO MAKE RECOMMENDATIONS WITHIN 60 TO 90 DAYS ON STRENGTHENING THE PENSION BENEFIT GUARANTY CORP THE FEDERAL AGENCY THAT BACKSTOPS THE PENSIONS OF 41 MILLION AMERICANS A LABOR DEPARTMENT SPOKESWOMAN SAID THE DEPARTMENT HASN'T YET RECEIVED THE REQUEST 9303100018 930310 SHONEY'S TO BUY ALL THE HOLDINGS OF ITS FOUNDER KEY FIGURE IN RACE BIAS SUIT TO SELL STAKE AND LEAVE BOARD AT END OF TERM BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHONEY'S INC SAID IT PLANS TO BUY BACK ALL THE HOLDINGS OF ITS FOUNDER RAYMOND L DANNER A CENTRAL FIGURE IN A LENGTHY DISPUTE OVER RACIAL DISCRIMINATION AT THE COMPANY IN A TRANSACTION VALUED AT MORE THAN 107 MILLION MR DANNER 68 YEARS OLD ALSO WON'T STAND FOR REELECTION TO THE BOARD AT THE ANNUAL MEETING WHICH IS EXPECTED TO BE HELD JUNE 30 HIS 12 STAKE IN THE CHAIN OF MORE THAN 1800 RESTAURANTS CONSISTS OF 37 MILLION SHARES HE OWNS DIRECTLY AND ONE MILLION SHARES HELD IN TRUST FOR HIS FAMILY MEMBERS AND FOUNDATIONS SHONEY'S SHARE PRICE JUMPED ON THE NEWS CLOSING AT 24375 UP 150 IN TRADING ON THE NEW YORK STOCK EXCHANGE THE MOVE BY MR DANNER FOLLOWS SEVERAL TUMULTUOUS MONTHS FOR SHONEY'S BASED IN NASHVILLE TENN LAST NOVEMBER THE COMPANY SETTLED A LAWSUIT BY MAKING 105 MILLION AVAILABLE FOR EMPLOYEES WHO HAD ALLEGED RACIAL DISCRIMINATION THE SUIT ORIGINALLY FILED IN 1989 TOOK AIM AT MR DANNER SHONEY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER FROM 1976 UNTIL 1989 CHARGING THAT HE HAD FOSTERED A CLIMATE OF BIAS AGAINST BLACKS AT THE COMPANY IN DECEMBER LEONARD H ROBERTS MR DANNER'S SUCCESSOR AS CHAIRMAN AND CHIEF EXECUTIVE ABRUPTLY RESIGNED AT THE TIME MR ROBERTS SAID HE HAD DECIDED TO LEAVE BECAUSE CERTAIN MEMBERS OF SHONEY'S BOARD HAD RESISTED CHANGE BUT SEVERAL COMPANY OFFICIALS SAID HE WAS FORCED OUT BECAUSE OF HIS ZEAL FOR AFFIRMATIVE ACTION LATE LAST MONTH MR DANNER WHO HAD HELD A 165 STAKE IN THE COMPANY GAVE SHONEY'S 27 MILLION OF HIS SHARES TO FUND MUCH OF THE SETTLEMENT SAID TAYLOR H HENRY JR THE COMPANY'S NEW CHAIRMAN AND CHIEF EXECUTIVE IN AN INTERVIEW THAT SETTLEMENT AFTER TAXES AND INSURANCE COST SHONEY'S 772 MILLION MR HENRY SAID MR DANNER'S CONTRIBUTION ACCOUNTED FOR 83 OF THAT FIGURE HE ADDED PEOPLE CLOSE TO THE COMPANY SAID MR DANNER DECIDED TO DISTANCE HIMSELF FROM SHONEY'S TO REMOVE HIMSELF FROM THE SPOTLIGHT AND TO ALLAY CONCERNS AMONG SOME INVESTORS THAT HE MIGHT BE INVOLVED WITH MANAGEMENT THE BOARD DIDN'T PUT PRESSURE ON HIM SAID ALEX SCHOENBAUM A CURRENT BOARD MEMBER WHO WORKED WITH MR DANNER MORE THAN 30 YEARS AGO IN FOUNDING THE RESTAURANT CHAIN EXTERNALLY PEOPLE OUT THERE HAD HARD FEELINGS ABOUT HIS DOINGS FOR THE WELFARE OF THE COMPANY HE THOUGHT IT WOULD BE BEST TO STEP ASIDE ANALYSTS SAID MR DANNER'S MOVE SHOULD CALM INVESTOR CONCERNS THAT HE STILL HAD A HAND IN RUNNING THE COMPANY THERE WAS A REMAINING QUESTION IS TAYLOR HENRY REALLY IN CHARGE OR IS THE BOARD STILL CONTROLLED BY THE SILENT HAND OF RAY DANNER' SAID CRAIG WEICHMANN AT MORGAN KEEGAN INC BEING A GOOD BUSINESSMAN THE LAST THING HE'D DO IS HAMPER THE PROGRESS OF SHONEY'S MR DANNER WHO COULDN'T BE REACHED FOR COMMENT SAID IN A PREPARED STATEMENT THAT HE WAS SELLING HIS STAKE TO CONCENTRATE ON MY OTHER BUSINESS INTERESTS AND EXPAND MY OWN COMPANIES HE CURRENTLY RUNS AN INVESTMENT FIRM IN NASHVILLE THE DANNER CO WHICH HAS INVESTMENTS IN AUTO DEALERSHIPS A SEAFOOD IMPORTING BUSINESS GOLF COURSES AND PLANTS THAT MANUFACTURE INDUSTRIAL TAPE AND WOODEN PALATES HE WANTED TO REFOCUS ON HIS SECOND CAREER SAID GARY NEILL CHIEF OPERATING OFFICER FOR DANNER CO THE STOCK SALE AND DECISION TO STEP DOWN FROM THE BOARD HAD ABSOLUTELY NOTHING TO DO WITH THE LEGAL SETTLEMENT MR NEILL SAID THE STOCK BUYBACK WHICH IS COSTING THE COMPANY 22875 FOR EACH OF MR DANNER'S SHARES WILL BOOST PERSHARE EARNINGS MR HENRY SAID BUT HE WOULDN'T SPECIFY BY HOW MUCH THE COMPANY'S FIRSTQUARTER SALES WHICH WILL BE RELEASED NEXT WEEK HAVEN'T BEEN HURT BY THE NOVEMBER ANNOUNCEMENT OF THE LEGAL SETTLEMENT HE SAID SAMESTORE SALES HAD BEEN DECLINING SLIGHTLY IN THE MONTHS BEFORE THE SETTLEMENT AND HAVE BEEN INCREASING SINCE THEN HE SAID 9303100017 930310 BUSINESS BRIEF PRECISION AEROTECH INC FIRM SAYS LOSS WIDENED IN FISCAL SECOND QUARTER PRECISION AEROTECH INC SAID ITS NET LOSS FOR THE OCT 31 FISCAL SECOND QUARTER WIDENED TO 514000 FROM A NET LOSS OF 370000 A YEAR EARLIER THE LA JOLLA CALIF MAKER OF MECHANICAL AND ELECTRONIC PARTS FOR THE AEROSPACE INDUSTRY SAID IT REMAINS IN DEFAULT ON ITS SENIOR DEBT AND THAT IT CONTINUES NEGOTIATIONS AIMED AT WAIVERS ON THE DEFAULT AND RESTRUCTURING OF THE DEBT WHICH IT SAID WILL PROBABLY ENTAIL SIGNIFICANT DILUTION OF THE CURRENT COMMON EQUITY THE COMPANY SAID ITS LOSS IN THE LATEST QUARTER WAS EQUAL TO 17 CENTS A SHARE COMPARED WITH A LOSS OF 12 CENTS A YEAR EARLIER SALES SLID 12 TO 114 MILLION FROM 13 MILLION 9303100016 930310 TECHNOLOGY MOTOROLA SCHLUMBERGER VENTURE SCHAUMBURG ILL MOTOROLA INC AND SCHLUMBERGER LTD SAID THEY FORMED A JOINT VENTURE TO DEVELOP WIRELESS TECHNOLOGY FOR REMOTE MONITORING OF UTILITY METERS MOTOROLA BASED HERE AND SCHLUMBERGER NEW YORK SAID THE PROJECT WILL BE CALLED ADVANCED METER READING TECHNOLOGIES AND WILL OPERATE FROM AN ATLANTA DESIGN CENTER THE CENTER WILL OPEN DURING THE SECOND QUARTER OF THIS YEAR THE COMPANIES SAID MOTOROLA WILL MANUFACTURE ANY METERREADING PRODUCTS DEVELOPED BY THE VENTURE AND SCHLUMBERGER WILL PROVIDE METERING PRODUCTS SALES AND SERVICE THE COMPANIES WILL HAVE EQUAL OWNERSHIP AND REPRESENTATION ON THE VENTURE'S BOARD 9303100015 930310 CORRECTIONS & AMPLIFICATIONS PNC BANK PITTSBURGH IS A UNIT OF PNC BANK CORP IN MONDAY'S ENTERPRISE COLUMN THE BANK WAS IDENTIFIED AS A UNIT OF PNC FINANCIAL CORP PNC BANK CORP'S PREVIOUS NAME INVACARE CORP ACQUIRED CLOSELY HELD TOP END WHEELCHAIR SPORTS INC FOR LESS THAN 5 MILLION IN FRIDAY'S BUSINESS BRIEFS SECTION IT WAS INCORRECTLY REPORTED THAT THE PRICE WAS BETWEEN 5 MILLION AND 10 MILLION 9303100014 930310 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BARNETT BANKS INC AN OFFERING OF 500 MILLION IN DEBT SECURITIES AND PREFERRED STOCK COASTAL CORP AN OFFERING OF 200 MILLION OF CUMULATIVE PREFERRED STOCK MCI COMMUNICATIONS CORP AN OFFERING OF 1 BILLION OF SENIOR SUBORDINATED MEDIUMTERM NOTES VIA MERRILL LYNCH & CO GOLDMAN SACHS & CO LEHMAN BROTHERS AND SALOMON INC MASCO INDUSTRIES INC AN OFFERING OF 600 MILLION OF DEBT SECURITIES PREFERRED STOCK AND COMMON SHARES UNIVERSAL HEALTH REALTY INCOME TRUST AN OFFERING OF 15 MILLION SHARES VIA SMITH BARNEY HARRIS UPHAM & CO AND KEMPER SECURITIES INC WACHOVIA CORP A SHELF OFFERING OF 500 MILLION OF SUBORDINATED DEBT SECURITIES 9303100013 930310 CLINTON TO UNVEIL PROGRAM TO ASSIST DEFENSE CONCERNS WASHINGTON THE WHITE HOUSE PLANS TO UNVEIL LATER THIS WEEK A MULTIBILLION DOLLAR MULTIYEAR PROGRAM TO HELP DEFENSE COMPANIES AND WORKERS ADJUST TO THE POSTCOLD WAR WORLD ADMINISTRATION OFFICIALS SAID THE PACKAGE IS EXPECTED TO FALL FAR SHORT OF PRESIDENT CLINTON'S CAMPAIGN PROMISE TO TAKE EVERY DOLLAR HE CUTS FROM THE DEFENSE BUDGET MORE THAN 60 BILLION AND SPEND IT ON DEFENSE CONVERSION MOST OF THE PROGRAM BEING PREPARED WILL CONSIST OF 176 BILLION APPROPRIATED BY CONGRESS LAST YEAR IT ALSO WILL INCLUDE A SMALL AMOUNT OF ADDITIONAL FUNDS FOR SOME DUALUSE TECHNOLOGY PROGRAMS ALSO PRESIDENT CLINTON IS EXPECTED TO PROPOSE SPENDING ROUGHLY 2 BILLION ON DEFENSE CONVERSION IN THE FISCAL 1994 DEFENSE BUDGET NOW BEING PREPARED THE ANNOUNCEMENT WILL BE MADE SOON IN PART TO SOFTEN THE BLOW OF THE SUGGESTED LIST OF BASE CLOSINGS THAT DEFENSE SECRETARY LES ASPIN PLANS TO RELEASE FRIDAY THAT LIST IS EXPECTED TO INCLUDE A SEVERAL NAVY SHIPYARDS AND DEPOTS WHICH GENERALLY EMPLOY LARGER NUMBERS OF CIVILIANS THAN DO MILITARY BASES MR ASPIN MET WITH SEVERAL MEMBERS OF CONGRESS YESTERDAY TO HEAR THEIR COMPLAINTS ABOUT CLOSINGS BUT HE ISN'T EXPECTED TO MAKE MANY CHANGES IN THE LISTS OF SUGGESTIONS RECENTLY SUBMITTED BY THE ARMED SERVICES 9303100012 930310 MARKETING & MEDIA LORAL CORP SEEKS PARTNER FOR MOVE INTO SATELLITE TV BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LORAL CORP CHAIRMAN BERNARD L SCHWARTZ SAID HIS COMPANY IS LOOKING FOR A PARTNER WITH WHICH TO ENTER THE DIRECT SATELLITETOHOME TELEVISION MARKET THE EXECUTIVE SAID IN AN INTERVIEW THAT HE HAS SPOKEN WITH MOST OF THE SIGNIFICANT SERVICE PROVIDERS INCLUDING CABLE OPERATORS AND ENTERTAINMENT COMPANIES ABOUT THE FEASIBILITY OF PROVIDING DIRECT PROGRAMMING BY SATELLITE HE WOULDN'T IDENTIFY POTENTIAL PARTNERS BUT SAID HE ENVISIONS A PROJECT THAT WOULD LAUNCH ONE OR TWO SATELLITES AT A COST OF 100 MILLION TO 150 MILLION EACH SATELLITE COULD HAVE AS MANY AS 24 CHANNELS WITH 10 TRANSPONDERS OR SIGNAL TRANSMITTERS FOR A TOTAL OF 480 CHANNELS AT ANY ONE TIME LORAL A DEFENSEELECTRONICS COMPANY THAT IS ALSO ONE OF THE WORLD'S LARGEST COMMERCIALSATELLITE PRODUCERS HOPES TO MAKE A DECISION ABOUT DIRECTSATELLITE BROADCASTING WITHIN THE YEAR MR SCHWARTZ SAID THE MOVE WOULD PUT LORAL IN DIRECT COMPETITION WITH HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP AMONG OTHERS HUGHES'S DIRECTV UNIT THIS YEAR SIGNED DEALS WITH THE DISNEY CHANNEL AND PARAMOUNT PICTURES' VIDEO DIVISION AS PART OF ITS 500 MILLION SATELLITETOHOME TV VENTURE WE BELIEVE THE MARKET IS MORE THAN BIG ENOUGH TO ACCOMMODATE MORE THAN TWO DIRECT BROADCASTERS MR SCHWARTZ SAID THE TECHNOLOGY WILL CREATE THE DEMAND HIS PROPOSED ENTRY INTO THE DIRECTBROADCASTING MARKET DIFFERS FROM HUGHES'S APPROACH IN THAT LORAL WANTS A PARTNER TO TAKE PART IN THE ACTUAL PROGRAMMING LORAL EVENTUALLY HOPES TO ARRANGE NOT ONLY ENTERTAINMENT PROGRAMMING BUT SPECIALINTEREST PROGRAMMING RANGING FROM FINANCIAL AND EDUCATIONAL DATABANKS TO INTERACTIVE GAMES MR SCHWARTZ SAID HE SEES LORAL'S INTEREST IN DIRECTBROADCASTING AS INTERRELATED WITH GLOBALSTAR THE COMPANY'S TELEPHONESATELLITE VENTURE THAT PROJECT WHICH FACES TOUGH RIVALRY FROM COMPANIES SUCH AS MOTOROLA INC AND TRW INC PROPOSES USING 48 LOWEARTHORBITING SATELLITES TO BEAM SIGNALS AROUND THE GLOBE TO PEOPLE CARRYING PORTABLE PHONES LORAL IS KNOWN PRIMARILY FOR ITS ELECTRONICWARFARE PRODUCTS WHICH INCLUDE RADARJAMMERS AND WARNERS MILITARY SIMULATORS AND TRAINING SYSTEMS AND COMMAND CONTROL AND COMMUNICATIONS SYSTEMS A MOVE INTO DIRECT BROADCASTING WOULD BE CONSISTENT WITH THE COMPANY'S INTEREST IN NEW TECHNOLOGY MR SCHWARTZ SAID LORAL IS AN EXPERT IN MILITARY APPLICATION WE'D BRING THAT TECHNOLOGY TO ENTERTAINMENT PROVIDERS HE SAID ADDING THAT LORAL HAS THE FINANCIAL WHEREWITHAL AND IS WILLING TO INVEST LORAL BUILDS SATELLITES THROUGH ITS UNCONSOLIDATED SUBSIDIARY SPACE SYSTEMS/LORAL WHICH IS PARTLY OWNED BY FOUR EUROPEAN PARTNERS 9303100011 930310 TECHNOLOGY WARNERLAMBERT TAKES THIRD SWING AT FDA APPROVAL FOR ALZHEIMER'S DRUG BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL WARNERLAMBERT CO IS KNOCKING ON THE FOOD AND DRUG ADMINISTRATION'S DOOR FOR THE THIRD TIME IN TWO YEARS SEEKING APPROVAL FOR ITS ALZHEIMER'S DISEASE DRUG COGNEX THE COMPANY WILL PRESENT THE RESULTS OF A NEW STUDY OF THE DRUG TO AN ADVISORY PANEL OF EXPERTS AT A MEETING AT THE FDA'S HEADQUARTERS IN ROCKVILLE MD MARCH 18 WHILE FDA OFFICIALS SAY THEY CAN'T PREDICT THE OUTCOME OF THE MEETING SEVERAL SOURCES AT THE AGENCY AND AMONG ALHEIZMER'S DISEASE SPECIALISTS BELIEVE THE PANEL MAY FINALLY RECOMMEND THAT THE FDA ALLOW WARNERLAMBERT TO MARKET THE DRUG IF THAT OCCURS COGNEX WILL BECOME THE FIRST DRUG SANCTIONED BY THE GOVERNMENT FOR USE AGAINST THE MINDROBBING DISEASE THAT AFFECTS ABOUT FOUR MILLION AMERICANS I THINK WARNERLAMBERT HAS A SUBSTANTIALLY BETTER CHANCE OF GETTING A POSITIVE RECOMMENDATION FROM THE ADVISORY COMMITTEE THIS TIME SAID RONALD NORDMANN A DRUG INDUSTRY ANALYST AT PAINEWEBBER INC NEW YORK I'VE BEEN TOLD RESULTS OF THE NEW STUDY ARE ENCOURAGING IN 1991 THE SAME PANEL TWICE TURNED DOWN WARNERLAMBERT'S REQUEST TO MARKET COGNEX IN LENGTHY HEARINGS IN MARCH AND IN JUNE THE ADVISORY PANEL SAID THAT WARNERLAMBERT'S CLINICAL STUDIES OF THE DRUG FAILED TO SHOW THAT THE DRUG PROVIDED A BENEFIT THAT OUTWEIGHED POSSIBLE HEALTH RISKS BUT IN AN UNUSUALLY PERSISTENT AND AGGRESSIVE EFFORT TO GET THE DRUG PAST THE FDA'S REVIEWERS WARNERLAMBERT FOLLOWED THE ADVISORY PANEL'S SUGGESTION IN 1991 TO UNDERTAKE A NEW STUDY OF COGNEX USING HIGHER DOSES OF THE DRUG OVER A LONGER PERIOD OF TIME WARNERLAMBERT A PHARMACEUTICAL AND CONSUMER HEALTH PRODUCTS MAKER BASED IN MORRIS PLAINS NJ COMPLETED A STUDY OF 500 PATIENTS JUST THIS PAST JANUARY AND ACCORDING TO FDA SOURCES THE AGENCY'S STAFF MOVED SWIFTLY UNDER ORDERS FROM TOP FDA OFFICIALS TO ORGANIZE A NEW REVIEW OF THE DRUG THE SPEED WITH WHICH THE FDA STAFF HAS SET UP A REVIEW OF THE DRUG HAS TO BE SEEN A POSITIVE DEVELOPMENT MR NORDMANN SAID AT THE TWO PREVIOUS ADVISORY PANEL MEETINGS A GROUP OF DOCTORS AND STATISTICIANS RULED THAT A MAJOR STUDY OF COGNEX AS WELL AS SEVERAL OTHER SMALLER STUDIES SHOWED THAT THE DRUG BENEFITED ONLY A SMALL PERCENTAGE OF PATIENTS WHILE A FEW PATIENTS TESTED DID EXPERIENCE A SIGNIFICANT ARREST IN MENTAL DECLINE THE PANEL EXPERTS WERE UNCERTAIN HOW MUCH OF THAT BENEFIT WAS DUE TO THE DRUG MOREOVER COGNEX USE CAUSED AN INCREASE IN LIVER ENZYMES IN SOME PATIENTS AN INDICATION OF POTENTIAL LIVER DAMAGE A WARNERLAMBERT SPOKESMAN DECLINED TO COMMENT ON THE JUST COMPLETED TEST OTHER THAN TO SAY THE COMPANY BELIEVES THE RESULTS ARE ENCOURAGING BUT SOURCES AT THE FDA INDICATED THAT THE NEW STUDY SUPPORTED EARLIER CLAIMS THAT THE DRUG CAN PROVIDE A LIMITED AND SHORTTERM BENEFIT THE NEW TEST MAY ALSO SHOW THAT THE LIVER ENZYME PROBLEM REVERSES WHEN THE DRUG IS DISCONTINUED BUT THE ADVISORY PANEL THAT WILL REVIEW THE DRUG STUDIES IS MADE UP OF SEVERAL NEW MEMBERS ALSO THE FDA STAFF IS EXPECTED TO HELP THE COMPANY ARGUE FOR APPROVAL BECAUSE THE DRUG'S SIDE EFFECT PROBLEM ISN'T SEVERE AND BECAUSE NO OTHER DRUG FOR THE DISEASE IS AVAILABLE ON A WIDESPREAD BASIS THE FDA ITSELF IS TRYING TO RESPOND TO A GROWING CALL BY PATIENTS TO APPROVE DRUGS FOR CERTAIN DISEASES EVEN THOUGH THE DRUG'S EFFECTIVENESS IS QUESTIONABLE EVEN IF THE DRUG IS APPROVED MANY ALZHEIMER'S DISEASE DOCTORS SAY THEY WILL USE THE DRUG ONLY IF PRESSED BY FAMILIES OF THOSE WITH THE ILLNESS ALTHOUGH I'M NOT PRIVY TO THE NEW STUDY I DON'T THINK COGNEX OR DRUGS THAT ACT LIKE IT PROVIDE A WORTHWHILE BENEFIT TO PATIENTS SAID STEPHEN FERRIS AN ALZHEIMER'S DISEASE SPECIALIST AT NEW YORK UNIVERSITY MEDICAL CENTER DR FERRIS SERVED ON THE PREVIOUS ADVISORY PANEL BUT ISN'T ON THE NEW ONE THE FDA IS ALLOWING WARNERLAMBERT TO PROVIDE COGNEX TO ABOUT 6000 PATIENTS UNDER A SPECIAL CLOSELY MONITORED PROGRAM IN EFFECT SINCE LATE 1991 THE COMPANY IS CHARGING PATIENTS 3 FOR A DAY'S DOSE OF THE DRUG BUT DECLINED TO SAY HOW MUCH IT MIGHT CHARGE IF THE DRUG GETS FDA APPROVAL SEVERAL INDUSTRY OFFICIALS SAID THAT IF THE FDA DOES APPROVE COGNEX IT MAY SET THE STANDARD FOR APPROVAL OF ABOUT A HALF DOZEN OTHER EXPERIMENTAL ALZHEIMER'S DISEASE DRUGS IN ADVANCED STAGES OF TESTING EVEN THOUGH NONE OF THOSE DRUGS APPEARS TO BE SIGNIFICANTLY MORE USEFUL THAN COGNEX 9303100010 930310 PRICING HEALTH CARE MY PROSTATE MY CHOICE BY RICHARD N CARTER WHEN TIME WARNER'S STEVE ROSS DIED IN DECEMBER OF PROSTATE CANCER AMERICANS WERE REMINDED THAT AFTER LUNG CANCER THIS IS THE SECOND MOST DEADLY CANCER FOR AMERICAN MEN YET THE VALUE OF PROSTATESPECIFIC ANTIGEN OR PSA A CANCER BLOOD TEST HAS BEEN DEBATED SINCE IT FIRST WAS REPORTED IN THE NEW ENGLAND JOURNAL OF MEDICINE OVER A YEAR AGO PROPONENTS OF MANAGED CARE JUDGE THE 30 TO 70 A TEST COSTS OF WIDESPREAD PSA SCREENING UNNECESSARY ARGUING THAT THE PRESENCE OF SMALL TUMORS ISN'T ALWAYS LIFETHREATENING THEY ALSO ARGUE REASONABLY ENOUGH THAT GIVING THE PATIENT A TEST WITH A HIGH RATE OF POSITIVE RESULTS PROVOKES NEEDLESS WORRY FOR THE PATIENT WHY PAY FOR TESTS THAT THEN LEAD TO SURGERY TO REMOVE THE CANCER WHEN OTHER DISEASES MOVING MORE RAPIDLY MAY BECOME THE PRIMARY CAUSE OF DEATH OTHER LONGTIME PRACTITIONERS CITE THE EFFICACY OF DIGITAL RECTAL EXAMS IN FINDING SIGNIFICANT CANCERS ONCE A TUMOR IS LARGE ENOUGH TO BE FELT HOWEVER IT MAY HAVE METASTASIZED TO OTHER ORGANS A PROGRESSION THAT LAST YEAR CLAIMED THE LIVES OF SOME 35000 US MALES SEN BOB DOLE WHO SAYS A ROUTINE PSA TEST BIOPSY AND SURGERY IN 1991 SAVED HIS LIFE HAS FACED CRITICISM IN THE PRESS BECAUSE HE ADVOCATES A TEST THAT MANY THINK WILL RAISE THE NATIONAL HEALTH BILL WITHOUT OFFERING PROVEN BENEFITS TO EVERYONE ARGUMENTS OVER PSA SCREENING GO TO THE HEART OF THE CURRENT HEALTHCARE DEBATE TO CUT COSTS CERTAIN PROCEDURES MAY SOON BE DEEMED UNNECESSARY OR TOO EXPENSIVE OR BOTH BY HMOS INSURANCE COMPANIES AND GOVERNMENT OFFICIALS AT THE EXPENSE OF THE PATIENT'S HEALTH AND FREEDOM OF CHOICE DRACONIAN JUDGMENTS ABOUT THE ACCEPTABILITY OF MEDICAL TREATMENT JUDGMENTS THAT AFFECT REIMBURSEMENT AND ACCESS TO CARE ESPECIALLY FOR THE ELDERLY TOO OFTEN OMIT THE MOST IMPORTANT FACTOR IN THE HEALTHCARE DEBATE THE PATIENT HIMSELF WHATEVER HAPPENED TO THE LEGAL DOCTRINE OF INFORMED CONSENT THAT DOCTORS ARE SUPPOSED TO BE PRACTICING EVEN IF THE TRIAL LAWYERS HAVE TEMPORARILY MISSED THIS ONE IT MAKES PERFECT MORAL LEGAL AND MEDICAL SENSE TO REGARD NEW HIGHTECHNOLOGY TESTS AND TREATMENT REGIMENS EVEN THOSE WHOSE EFFECTIVENESS IS STILL A MATTER OF DISPUTE AS OPTIONS FOR THE PATIENT TO CHOOSE FREELY THIS IS PARTICULARLY SO IF THE PATIENT IS WILLING TO PAY FOR A GIVEN TEST OR PROCEDURE OUT OF HIS OWN POCKET A POSSIBILITY THAT MEDICARE THE FEDERAL INSURANCE PROGRAM FOR SENIOR CITIZENS OFTEN KNOCKS OUT ALL SEGMENTS OF SOCIETY FROM THE MILITARY TO THE CONGRESS HAVE DISCOVERED THEY NO LONGER CONTROL PRIVILEGED INFORMATION FOR A DOCTOR TO OMIT A TEST BECAUSE ITS COMPLETE EFFICACY IS UNPROVED OR BECAUSE IT MAKES POOR FISCAL SENSE TO SOMEONE OTHER THAN THE PATIENT IS TO PRACTICE MEDICAL HUBRIS I WILL DECIDE ABOUT MY OWN BODY AFTER THE DOCTOR INFORMS ME OF A TEST THAT MAY REVEAL CANCER TELLS ME WHAT IT IS WHY I MAY BENEFIT WHAT ADVERSE EFFECT MAY OCCUR WITH OR WITHOUT THE TEST HOW MUCH IT COSTS AND WHETHER MY INSURANCE COVERS THE TEST LET ME DECIDE IF I WANT IT LAST MAY AFTER READING ABOUT THE PSA TEST IN THIS NEWSPAPER I ASKED MY INTERNIST TO INCLUDE IT IN MY ANNUAL PHYSICAL SYMPTOMFREE AT AGE 51 I WAS SHOCKED TO LEARN I HAD AN ELEVATED PSA LEVEL THAT A BIOPSY PROVED WAS A LARGE PROSTATIC CANCER IN AUGUST MY PROSTATE WAS REMOVED BEFORE THE CANCER HAD SPREAD TO ANY OTHER ORGAN LIKE SEN DOLE I AM THANKFUL FOR THE PSA TEST MY SURGEON AND MEDICAL TEAM THE TECHNOLOGY WORKS WHEN DID YOU LAST HEAR THE OLD TERM EXPLORATORY SURGERY SAFER CHEAPER SCANNERS HAVE MADE THAT PROCEDURE LARGELY OBSOLETE THE RIGHT TO TESTING THE RIGHT TO CHOOSE SURGERY OR THERAPY IS FUNDAMENTAL IT BELONGS TO THE PATIENT WITH GUIDANCE FROM THE DOCTOR IT IS NOT JUST AN ECONOMIC DECISION THE DOCTOR OF COURSE MAY ADVOCATE ONE PROCEDURE OR ANOTHER BUT HE SHOULD NOT PLAY ANY ADDITIONAL ROLE WITHOUT INFORMED PATIENT CONSENT THE VERY TERM GATEKEEPER A ROLE THAT DOCTORS IN HMOS ARE NOW BEING ASKED TO FILL AND THAT ALL DOCTORS MAY BE FORCED TO PLAY UNDER A CLINTON HEALTH PLAN IS A MANAGEDCARE EUPHEMISM FOR TREASURER IT AFFRONTS FREEDOM OF CHOICE AND PRESUMES THAT FINANCIAL DECISIONS ARE AS IMPORTANT AS MEDICAL DECISIONS WITHOUT ALLOWING FOR PATIENT INPUT A BETTER STRUCTURE WOULD EMPLOY A FREEMARKET FACILITATOR TO EXPLAIN THE OPTIONS RESOURCES AND COSTS TO HELP THE PATIENT DECIDE INCREASINGLY WE SHOULD SEE MORE EMPHASIS ON QUALITY OF LIFE AND PREVENTIVECARE ADVOCACY AS EARLY TESTS FOR CANCER AND GENETIC SCREENINGS BECOME WIDELY AVAILABLE FOR THOSE DISEASES THAT OTHERWISE MIGHT NOT MANIFEST THEMSELVES FOR DECADES I BELIEVE OUR US HEALTHCARE SYSTEM STILL PROVIDES THE FINEST CARE BUT AT THE SAME TIME CLIENTS MUST BE FREE TO MAKE DECISIONS FOR THEMSELVES AND TO TAKE THEIR BUSINESS WHEREVER THEY PERCEIVE BETTER SERVICE OR VALUE EXISTS IN THE WORLD AND THERE SHOULD BE NO ARGUING THAT INFORMED MEN NOT BE ABLE TO SEEK AS PART OF A ROUTINE PHYSICAL A SIMPLE PSA BLOOD TEST ONE THEY LIKELY WOULD BE PERSONALLY HAPPY TO PAY FOR A PSA TEST WON'T HURT YOU AND IT MAY PROLONG YOUR LIFE I MISS MY PROSTATE BUT FOR NO AMOUNT OF MONEY WOULD I TAKE IT AND MY CANCER BACK DR CARTER IS AN ORTHODONTIST IN PORTLAND ORE 9303100009 930310 INTERNATIONAL SEMICONDUCTOR ORDERS HIT 207 BILLION IN FEBRUARY SAN JOSE CALIF CONTINUING STRONG DEMAND FOR PERSONAL COMPUTER PRODUCTS PUSHED NEW ORDERS FOR SEMICONDUCTORS IN THE US UP TO 207 BILLION IN FEBRUARY ACCORDING TO FIGURES RELEASED BY THE SEMICONDUCTOR INDUSTRY ASSOCIATION FEBRUARY ORDERS OR BOOKINGS BASED ON A THREEMONTH ROLLING AVERAGE ROSE SLIGHTLY FROM JANUARY'S 205 BILLION AND WERE 399 AHEAD OF YEARAGO TOTALS THE INDUSTRY GROUP SAID SEMICONDUCTOR BILLINGS OR SHIPMENTS BASED ON A THREEMONTH AVERAGE WERE 174 BILLION 22 AHEAD OF JANUARY AND 314 OVER THE YEARAGO BILLING THE INDUSTRY'S BOOKTOBILL RATIO FOR FEBRUARY REMAINED STRONG AT 118 DOWN SLIGHTLY FROM JANUARY'S 120 RATIO THE RATIOS MEAN THAT FOR EACH 100 IN CHIPS SHIPPED THE INDUSTRY RECEIVED 118 IN ORDERS DURING FEBRUARY ACTUAL SINGLEMONTH US CHIP SHIPMENTS FOR FEBRUARY WERE 177 BILLION UP 123 FROM LAST MONTH AND UP 357 FROM A YEAR AGO 9303100008 930310 AILEEN'S FEBRUARY SALES FELL 11 NEW YORK AILEEN INC A MANUFACTURER AND RETAILER OF WOMEN'S APPAREL SAID SALES AT ITS STORES OPEN FOR MORE THAN ONE YEAR FELL ALMOST 11 IN FEBRUARY COMPARED WITH ONE YEAR AGO THE COMPANY IN NEW YORK WHICH MADE THE ANNOUNCEMENT AFTER THE STOCK MARKET CLOSED ATTRIBUTED THE POOR COMPARABLE SALES FIGURES TO ROUGH WEATHER IN FEBRUARY WHICH MAY HAVE DETERRED SHOPPERS FROM VENTURING OUT TO STORES IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AILEEN SHARES FINISHED UNCHANGED AT 650 OF THE COMPANY'S 139 STORES 116 HAVE BEEN OPEN FOR ONE YEAR OR MORE 9303100007 930310 ATTENTION MEDICAL MERGER TALKS CARROLLTON TEXAS ATTENTION MEDICAL CO A MEDICAL SUPPLY COMPANY SAID IT IS IN MERGER TALKS WITH PRIVATELY HELD TAYLOR MEDICAL INC ATTENTION SAID TERMS OF A DEAL AREN'T YET WORKED OUT AND IT WOULDN'T SAY WHEN AN AGREEMENT MIGHT BE REACHED TAYLOR IS A BEAUMONT TEXAS MEDICAL SUPPLIER 9303100006 930310 TECHNOLOGY ALLIEDSIGNAL'S BOSSIDY SAYS HE HAS NO PLANS TO LEAVE AS CHAIRMAN MORRISTOWN NJ TRYING TO QUELL PERSISTENT RUMORS LAWRENCE A BOSSIDY CHAIRMAN OF ALLIEDSIGNAL INC SAID IN A STATEMENT THAT HE HAS NO INTENTION OF LEAVING THE COMPANY THE FORMER VICE CHAIRMAN OF GENERAL ELECTRIC CO WHO IS CREDITED WITH TURNING ALLIEDSIGNAL AROUND HAS BEEN FREQUENTLY MENTIONED AS A TOP CONTENDER TO HEAD INTERNATIONAL BUSINESS MACHINES CORP ALTHOUGH I AM FLATTERED HE SAID I INTEND TO REMAIN AT ALLIEDSIGNAL TO COMPLETE THE JOB I CAME HERE TO DO MR BOSSIDY HAS OTHER REASONS TO STAY IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY DISCLOSED THAT MR BOSSIDY LAST YEAR RECEIVED A COMPENSATION PACKAGE VALUED AT MORE THAN 52 MILLION MR BOSSIDY WAS PAID 1016667 IN SALARY LAST YEAR AND 1250000 IN BONUS IN ADDITION HE RECEIVED STOCK OPTIONS VALUED AT 2085000 AND RESTRICTED STOCK UNITS VALUED AT 459900 IN THE PROXY STATEMENTS THE COMPANY SAID THAT IN REVIEWING MR BOSSIDY'S PERFORMANCE IT FOCUSED ON THE FACT THAT ALLIEDSIGNAL'S 1992 PERFORMANCE EXCEEDED GOALS WITH VERY SUBSTANTIAL IMPROVEMENT IN OPERATING EARNINGS PER SHARE AND CASH FLOW 9303100005 930310 POLITICS & POLICY RULES TO REGULATE 900' PHONE SERVICE PROPOSED BY FTC BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL TRADE COMMISSION PROPOSED RULES TO REGULATE THE ADVERTISING AND OPERATION OF PAYPERCALL SERVICES UNDER THE PROPOSED RULES COMPANIES PROVIDING SOCALLED 900 TELEPHONE NUMBER SERVICES MUST DISCLOSE THE COSTS OF THE CALLS CLEARLY AND CONSPICUOUSLY PRINT RADIO OR TELEVISION ADVERTISEMENTS MUST DISCLOSE EITHER THE TOTAL COST OF THE CALLS OR THE COSTPERMINUTE OF THE SERVICE IN TELEVISION COMMERCIALS THE COST MUST APPEAR ON THE SCREEN IN THE SAME SIZE TYPE AND FOR THE SAME AMOUNT OF TIME AS THE 900 TELEPHONE NUMBER IN ADDITION THE RULES WOULD REQUIRE CALLS THAT COST MORE THAN 2 TO BEGIN WITH A MESSAGE DISCLOSING THE COST AND THE NAME OF THE COMPANY OFFERING THE SERVICE CONSUMERS HANGING UP WITHIN FIVE SECONDS AFTER THE PREAMBLE MESSAGE ENDS WOULDN'T BE BILLED THE FEDERAL COMMUNICATIONS COMMISSION ALREADY HAS ADOPTED A SIMILAR RULE REQUIRING A PREAMBLE MESSAGE AND IS NOW REVISING ITS REGULATIONS ON 900 NUMBERS TO MEET THE REQUIREMENTS OF A LAW PASSED BY CONGRESS LAST OCTOBER UNDER THE LAW BOTH THE FTC AND THE FCC MUST ISSUE RULES REGULATING THE PAYPERCALL INDUSTRY YESTERDAY THE FTC PROPOSED RULES TO IMPLEMENT THE LAW INCLUDING A BAN ON 900NUMBER SERVICES AIMED AT CHILDREN UNDER 12 YEARS OF AGE UNLESS THEY ARE EDUCATIONAL FCC OFFICIALS SAID THAT AGENCY'S REVISED RULES WILL BE RELEASED LATER THIS WEEK TRADE GROUPS PROVIDED THE FTC COMMISSION WITH BACKGROUND INFORMATION ON THE INDUSTRY WHILE THE RULES WERE BEING DRAFTED BUT THE TRADE GROUP REPRESENTATIVES SAID IT IS TOO EARLY TO PREDICT WHAT EFFECT THE NEW REGULATIONS WILL HAVE PAYPERCALL SERVICES THAT OFFER RECORDINGS OF JOKES AND HOROSCOPES AND SOME THAT OFFER SEXUALLY EXPLICIT CONVERSATIONS ARE MOST COMMONLY KNOWN BUT TRADE GROUPS STRESS THAT THE GROWING INDUSTRY INCLUDES MORE SOPHISTICATED SERVICES OUR MAIN CONCERN IS THAT THE FTC END UP WITH FINAL RULES THAT ARE FLEXIBLE ENOUGH AND BROAD ENOUGH TO TAKE INTO ACCOUNT THIS EVEREVOLVING INDUSTRY SAID WILLIAM BURRINGTON EXECUTIVE DIRECTOR AND GENERAL COUNSEL OF THE NATIONAL ASSOCIATION OF INFORMATION SERVICES NAIS HAS 200 MEMBER COMPANIES INCLUDING THE MAJOR TELEPHONE CONCERNS AND PUBLISHING COMPANIES ALONG WITH OTHER 900NUMBER SERVICE PROVIDERS THE FTC IS SEEKING PUBLIC COMMENT ON THE RULES UNTIL APRIL 9 THE COMMISSION PLANS TO HOLD A TWODAY PUBLIC WORKSHOP APRIL 22 AND 23 TO DISCUSS THE ISSUES RAISED DURING THE COMMENT PERIOD UNDER THE LAW THE AGENCY MUST FINALIZE ITS RULES BY JULY 26 9303100004 930310 STOKELY USA DROPS IDEA OF PLACING FIRM UP FOR SALE BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL OCONOMOWOC WIS STOKELY USA INC WHOSE CANNED VEGETABLE BRAND IS THE THIRD LARGESTSELLING IN THE US SAID IT IS NO LONGER INTERESTED IN PUTTING ITSELF ON THE BLOCK BUT SOME WALL STREET ANALYSTS SAID THE AILING VEGETABLE PROCESSOR MIGHT HAVE A TOUGHER TIME WARDING OFF ANY UNWANTED SUITOR IN THE WAKE OF A PROJECTED LOSS FOR THE FOURTH QUARTER ENDING MARCH 31 THE PRICE OF STOKELY COMMON STOCK HAS DROPPED 26 TO 8375 A SHARE FROM 11375 IN NATIONAL OVERTHECOUNTER TRADING SINCE EARLY FEBRUARY WHEN THE COMPANY WAS ANTICIPATING A TURNAROUND QUARTER AFTER TWO YEARS OF LOSSES TAKEOVER SPECULATION ALSO RAN HIGH THEN BECAUSE STOKELY HAD HIRED MORGAN STANLEY & CO TO EXPLORE WHETHER TO SELL PART OR ALL OF THE COMPANY STOKELY MANAGEMENT HAS CONSIDERABLY LESS CONTROL OF ITS DESTINY WITH THE STOCK'S TRADING UNDER 9 A SHARE SAID KEVIN SKISLOCK AN ANALYST AT DAIN BOSWORTH INC IN MINNEAPOLIS IT ISN'T CLEAR HOWEVER WHETHER THERE ARE ANY STRONG SUITORS FOR STOKELY THE COMPETITION'S HANDS ARE FULL BECAUSE THE VEGETABLEPROCESSING INDUSTRY IS IN A CYCLICAL SLUMP AGGRAVATED BY A PRICE WAR AT THE WHOLESALE LEVEL WALL STREET ANALYSTS HAVE SPECULATED THAT STOKELY WHICH PROCESSES SWEET CORN BEANS AND PEAS MIGHT MAKE A CAPTIVE SUPPLIER FOR A PRODUCER OF FROZEN DINNERS BUT STOKELY'S DEPRESSED STOCK PRICE HAS APPARENTLY KILLED MANAGEMENT'S EARLIER APPETITE FOR A TAKEOVER CLEARLY WE HAVEN'T HAD ANY SERIOUS INQUIRIES THAT WE FELT WORTHY OF FURTHER INVESTIGATION SAID STEPHEN W THEOBALD STOKELY VICE CHAIRMAN HE SAID THE COMPANY IS HOLDING DISCUSSIONS WITH A VERY LIMITED NUMBER OF PARTIES ON POTENTIAL TRANSACTIONS RANGING FROM MARKETING ALIGNMENTS AND JOINT VENTURES TO THE SALE OF A MINORITY INTEREST IN STOKELY STOKELY'S PROFITABILITY HAS WITHERED SINCE EARNINGS PEAKED AT 164 MILLION OR 199 A SHARE ON SALES OF 272 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 1990 AN EXPANSION PROGRAM INCREASED CORPORATE DEBT AT A TIME WHEN HEALTHCONSCIOUS CONSUMERS WERE SHIFTING AWAY FROM CANNED VEGETABLES TO FROZEN AND FRESH MR THEOBALD SAID THE FOURTHQUARTER LOSS THE COMPANY EXPECTS TO REPORT WILL BE NARROWER THAN ITS LOSS OF 89 MILLION OR 108 A SHARE FOR THE SIMILAR 1992 QUARTER HE WOULDN'T ELABORATE FOR THE FIRST NINE MONTHS OF FISCAL 1993 THE COMPANY REPORTED A LOSS OF 53 MILLION OR 64 CENTS A SHARE SOME INDUSTRY ANALYSTS SAID THEY EXPECT STOKELY TO REPORT A PROFIT IN FISCAL 1994 IN PART BECAUSE THEY EXPECT THE PRICE IT PAYS APPROXIMATELY 1000 FARMERS FOR THEIR CROPS TO DROP THIS YEAR THE OFFICIAL OF A TRADE GROUP REPRESENTING WISCONSIN VEGETABLE GROWERS SAID STOKELY IS OFFERING CONTRACTS TO FARMERS THAT WILL PAY ABOUT 10 LESS THAN LAST YEAR 9303100003 930310 COMMODITIES HEAVY SALES BY PRODUCERS AND COMMODITY FUNDS CONTINUE TO PUT PRESSURE ON GOLD FUTURES PRICES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES CONTINUED SKIDDING TOWARD SEVENYEAR LOWS AMID PERSISTENT HEAVY SALES BY PRODUCERS THERE'S BEEN BASICALLY NO RESPITE FROM PRODUCER SELLING IN THE MARKET SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH THAT'S WHY RECENT RALLIES HAVE FAILED TO HOLD TRADERS ALSO SAID LARGE COMMODITY FUNDS WHICH INVEST POOLED MONEY IN FUTURES MARKETS WERE ALSO HEAVY SELLERS IN EARLY TRADING IN NEW YORK ON THE COMMODITY EXCHANGE IN NEW YORK GOLD FOR APRIL DELIVERY GAVE UP 50 CENTS TO SETTLE AT 32720 AN OUNCE FOLLOWING MONDAY'S 270 DROP THE APRIL CONTRACT HAD TRADED AS LOW AS 32660 BEFORE THE COMEX CLOSE AND IN THE LONDON SPOT MARKET GOLD SETTLED AT 32695 A SEVENYEAR LOW FUTURES TRADERS SAID THE BIGGEST SELLERS HAVE BEEN AUSTRALIAN PRODUCERS THE PERSISTENTLY WEAK AUSTRALIAN DOLLAR IS STIMULATING SALES OF GOLD WHICH IS DENOMINATED IN US DOLLARS THEY SAID ANOTHER MAJOR PRODUCER SOUTH AFRICA HAS A WEAK CURRENCY WHICH IS ALSO STIMULATING SALES BY SOUTH AFRICAN GOLDMINING COMPANIES WHILE INDUSTRIAL DEMAND FROM JEWELERS IN CHINA INDIA AND THE MIDDLE EAST IS PROVIDING SOME SUPPORT FOR GOLD THERE'S BEEN INSUFFICIENT INVESTOR OR SPECULATIVE DEMAND TO PREVENT REPEATED RETREATS IN FUTURES PRICES TO LEVELS WELL BELOW THE PSYCHOLOGICALLY IMPORTANT 330 AN OUNCE TRADERS SAY MANY TRADERS AND ANALYSTS NOW BELIEVE THE PATTERN OF FAILED GOLD RALLIES WILL PERSIST AND THAT NEW LOWS PERHAPS 320 TO 325 AN OUNCE WILL BE TESTED IN THE NEAR TERM THINGS ARE PRETTY BEARISH WE SEE FUNDAMENTALLY GOLD PRESSURED TO AROUND 320 WITH GOOD SUPPORT AROUND THERE SAID PETER RADTKE SENIOR ANALYST WITH ROBERT FINK CO IN NEW YORK THE RENEWED BEARISH SENTIMENT FOR GOLD STILL CONSIDERED A CLASSIC HEDGE AGAINST INFLATION STEMS LARGELY FROM DIMMING ECONOMIC GROWTH PROSPECTS IN EUROPE AND JAPAN WHAT'S MORE THE DEFICITTRIMMING BUDGET PROPOSALS OF THE CLINTON ADMINISTRATION ARE BEING VIEWED AS POTENTIALLY RECESSIONARY FOR NOW CONCERNS ABOUT CENTRAL BANK SALES OF GOLD INVENTORIES APPEAR TO HAVE FADED TRADERS SAY EARLIER THIS YEAR MARKETS CAME UNDER PRESSURE WHEN THE DUTCH CENTRAL BANK CONFIRMED REPORTS THAT IT SOLD 400 METRIC TONS OF ITS BULLION STOCK IN 1992 THAT CONFIRMATION RAISED FEARS THAT OTHER CENTRAL BANKS WOULD SOON FOLLOW SUIT BUT SO FAR NONE HAVE SILVER FOR MAY DELIVERY SETTLED TWO CENTS HIGHER AT 3578 AN OUNCE ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY FINISHED 290 HIGHER AT 34510 AN OUNCE WHILE PALLADIUM FOR JUNE DELIVERY SETTLED AT 10255 DOWN FIVE CENTS IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK & MEATS PORKBELLY FUTURES PRICES CONTINUED TO SOAR ON LOWERTHANEXPECTED PORK PRODUCTION AND STRONG DEMAND FOR BACON WHICH IS MADE FROM PORK BELLIES THE PRICE OF THE PORKBELLY CONTRACT FOR MAY DELIVERY ROSE THE DAILY LIMIT OF TWO CENTS TO SETTLE AT 5022 CENTS A POUND IN JANUARY AND FEBRUARY FAR MORE FROZEN PORK BELLIES THAN EXPECTED WERE MOVED OUT OF COLD STORAGE AN INDICATION OF BIG DEMAND FOR BACON THIS COUPLED WITH HOG SLAUGHTER THAT HAS BEEN RUNNING ABOUT 4 LESS THAN LAST YEAR HAS PRODUCED A SUSTAINED BULL MARKET IN THE CHICAGO MERCANTILE EXCHANGE'S PORKBELLY PIT THE STRENGTH IN HOG FUTURES PRICES MEANWHILE TAPERED OFF YESTERDAY HOGS FOR APRIL DELIVERY FELL 037 CENT TO 4837 CENTS A POUND ENERGY PETROLEUM FUTURES TRADING WAS LACKLUSTER ON THE NEW YORK MERCANTILE EXCHANGE WITH NO MAJOR NEWS TO PUSH PRICES IN EITHER DIRECTION THE RESULT WAS A DECREASE OF THREE CENTS A BARREL IN THE PRICE OF APRIL CRUDE WHICH SETTLED AT 2068 FUTURES PRICES OF CRUDE PRODUCTS SHOWED EQUALLY SLUGGISH MOVEMENT ALTHOUGH SOME TECHNICAL FACTORS INFLUENCED PRODUCTS TRADING APRIL HEATING OIL GAINED 016 CENT TO FINISH AT 5825 CENTS A GALLON WHILE APRIL GASOLINE CLOSED AT 5936 CENTS A GALLON DOWN 014 CENT SOME TRADERS SAID THEY EXPECTED THE WEEKLY REPORT ON US INVENTORIES FROM THE AMERICAN PETROLEUM INSTITUTE TO LEND DIRECTION TO TODAY'S TRADING SESSION ORANGE JUICE FUTURES PRICES PLUNGED IN VOLATILE TRADING CUTTING SHORT A RECENT RALLY IN A STILLSATURATED MARKET ON THE NEW YORK COTTON EXCHANGE ORANGE JUICE FOR MAY DELIVERY SETTLED 445 CENTS LOWER AT 7720 CENTS A POUND ON MONDAY THE ACTIVELY TRADED MAY CONTRACT HAD SURGED 380 CENTS A POUND ORANGE JUICE PROCESSORS CONTINUE TO SELL BECAUSE FRUIT PRICES REMAIN SOFT WITH LITTLE HOPE FOR SIGNIFICANT IMPROVEMENT DUE TO LARGE SURPLUSES IN THE MARKET THE TRADE IS STILL LARGELY NEGATIVE ON THE MARKET SAID JUDITH GANES MERRILL LYNCH ANALYST STEPHEN PLATT A SENIOR ANALYST WITH DEAN WITTER IN CHICAGO NOTED THAT THE MARKET STARTED ON A FIRMER NOTE BUT COULDN'T SUSTAIN ITSELF MR PLATT AND OTHER ANALYSTS SAID THE MARKET HAD BEEN OVERBOUGHT ON TECHNICAL CONSIDERATIONS AND WAS DUE FOR A CORRECTION THEY SAID MUCH OF THE SELLING CENTERED ON NERVOUSNESS ABOUT A US DEPARTMENT OF AGRICULTURE MONTHLY CROP REPORT DUE OUT TODAY THE REPORT IS EXPECTED TO SHOW A MODEST INCREASE IN THE NUMBER OF ORANGES PRODUCED IN FLORIDA AND IN THE JUICE YIELD ANALYSTS SAID 9303100002 930310 TECHNOLOGY DELL COMPUTER'S PROFIT SALES DOUBLED IN FISCAL 4TH PERIOD CONTINUING SURGE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP CONTINUING ITS ZOOMING SALES AND EARNINGS GROWTH REPORTED A DOUBLING IN FISCAL FOURTHQUARTER EARNINGS AND A 117 INCREASE IN SALES THE AUSTIN TEXAS MAILORDER COMPUTER COMPANY SAID IT EARNED 313 MILLION OR 77 CENTS A SHARE DURING THE QUARTER ENDED JAN 31 COMPARED WITH 154 MILLION OR 41 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES CLIMBED TO 6203 MILLION FROM 2857 MILLION ANALYSTS SAID THE RESULTS WHICH HAD BEEN FORECAST BY THE COMPANY WEEKS AGO REFLECT AN INCREASINGLY BALKANIZED PERSONAL COMPUTER BUSINESS WITH A HANDFUL OF MAJOR PLAYERS CONTINUING TO STEAL BUSINESS FROM THEIR SMALLER COUNTERPARTS WHILE MOST ANALYSTS COUNT DELL AMONG THE EARLY WINNERS IN THE INDUSTRY BATTLE FOR MARKET SHARE RESPONSE FROM INVESTORS YESTERDAY WAS MILD DELL'S STOCK WAS UP 1375 TO 35 IN LATE NATIONAL OVERTHECOUNTER TRADING THE MARKET GAIN COMES DESPITE INCREASING CONCERN ON WALL STREET THAT DELL MIGHT HAVE A TOUGH TIME REPEATING THIS YEAR'S RECORD PERFORMANCE THE COMPANY FOR EXAMPLE ALREADY HAS WARNED THAT IT WON'T HIT ITS TRADITIONAL 5 PROFIT MARGIN IN THE CURRENT FISCAL YEAR AND SOME ANALYSTS ALREADY HAVE BEGUN TO QUESTION DELL'S PROJECTION THAT IT WILL EARN BETWEEN 330 AND 375 A SHARE DURING THE YEAR MICHAEL K KWATINETZ A PERSONALCOMPUTER ANALYST AT SANFORD C BERNSTEIN IN NEW YORK PREVIOUSLY THOUGHT DELL'S EARNINGS ESTIMATE WOULD BE EASY TO ACHIEVE NOW I JUST BELIEVE IT'S REALISTIC HE SAID MICHAEL S DELL THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WALL STREET'S LACK OF ENTHUSIASM OVERLOOKS AMONG OTHER THINGS THE FACT THAT THE LATEST NUMBERS REFLECT THE FOURTH STRAIGHT YEAR IN WHICH DELL'S SALES HAVE GROWN BY MORE THAN 100 THAT'S GOT TO BE WORTH SOMETHING MR DELL SAID COME ON FOR ITS 1993 FISCAL YEAR THE COMPANY REPORTED NET INCOME OF 1016 MILLION OR 259 A SHARE COMPARED WITH 509 MILLION OR 140 A SHARE DURING THE PRIOR YEAR SALES WERE 201 BILLION COMPARED WITH 8899 MILLION MR DELL SAID HE EXPECTS REVENUE TO GROW BY ABOUT 70 THIS YEAR FUELED BY INCREASED SMALLBUSINESS AND CONSUMER DEMAND AND CONTINUED STRENGTH AMONG MAJOR CORPORATE AND EDUCATIONAL ACCOUNTS THE COMPANY WHICH EARLIER THIS YEAR SCRAPPED A PLANNED FOUR MILLIONSHARE PUBLIC OFFERING SAID IT IS CONTINUING TO LOOK FOR NEW SOURCES OF FINANCING BUT RULED OUT AN EQUITY OFFERING ANY TIME SOON TO ENSURE AN IMMEDIATE SOURCE OF MONEY MR DELL SAID THE COMPANY HAS RENEGOTIATED AN EXISTING 200 MILLION LINE OF CREDIT FROM A GROUP OF NINE BANKS LED BY BARCLAYS PLC IN ADDITION TO SECURING FINANCING THOUGH ANALYSTS SAY DELL THIS YEAR ALSO WILL HAVE TO GRAPPLE WITH A FOURPERCENTAGEPOINT INCREASE IN ITS TAX RATE A STEADY INCREASE IN THE COST OF ITS INVENTORY AND ALREADY TRIMMED OPERATING COSTS THAT WILL BE HARD TO CUT FURTHER IF PRICES CONTINUE DROPPING 9303100001 930310 USX CORP'S MARATHON GROUP HOUSTON USX CORP'S MARATHON GROUP SAID IT ACQUIRED 25 OF COLONIAL PIPELINE'S COMMON STOCK FROM BP OIL CO TERMS WERE NOT DISCLOSED THE PIPELINE OWNED BY SEVERAL COMPANIES THAT USE IT IS THE HIGHEST VOLUME PETROLEUM PRODUCTS PIPELINE IN THE US TRANSPORTING OVER 17 MILLION BARRELS A DAY FROM THE GULF COAST TO THE EAST COAST AND SOUTHEAST 9303100147 930202 BLOCKING BIAS VIA PROXY BY JOHN C COFFEE JR PRESIDENT CLINTON WILL SOON APPOINT A NEW CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION AMONG THE ISSUES THE NEW CHAIRMAN MUST FACE IS AN SEC STAFF POLICY ANNOUNCED QUIETLY IN MIDOCTOBER THAT EFFECTIVELY DENIES SHAREHOLDERS THE RIGHT TO USE THEIR CORPORATION'S PROXY STATEMENT TO CHALLENGE ALLEGEDLY DISCRIMINATORY CORPORATE EMPLOYMENT PRACTICES MUNDANE AS THIS LATEST SHIFT IN AN OFTENCHANGED SEC POLICY MAY SEEM IT ULTIMATELY INVOLVES A BROADER ISSUE THE RIGHT OF SHAREHOLDERS AS OWNERS TO IMPOSE NORMATIVE CONSTRAINTS ON THEIR COMPANY'S BEHAVIOR IN PRACTICE THEY MAY RARELY WISH TO DO SO BUT IT IS PUZZLING TO HAVE A GOVERNMENT AGENCY TELLING THEM THAT THEY MAY NOT DO SO THE ADVERSARIES IN THIS LATEST BATTLE OVER SHAREHOLDER POWER WERE CRACKER BARREL OLD COUNTRY STORE INC A TENNESSEEBASED RESTAURANT CHAIN WITH MORE THAN 14000 EMPLOYEES AND THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM NYCERS IN JANUARY 1991 CRACKER BARREL ISSUED A NEWS RELEASE IN WHICH IT SAID THAT IT WOULD NOT CONTINUE TO EMPLOY INDIVIDUALS WHOSE SEXUAL PREFERENCES FAIL TO DEMONSTRATE NORMAL HETEROSEXUAL VALUES BASED ON THIS POLICY CRACKER BARREL TERMINATED SEVERAL GAY EMPLOYEES AN UPROAR ENSUED AND CRACKER BARREL BACKED OFF FROM ITS FORMAL POLICY BUT NOT BEFORE GAY ACTIVISTS INITIATED A NATIONWIDE BOYCOTT OF THE COMPANY THEN IN JUNE 1992 NYCERS SUBMITTED A SHAREHOLDER PROPOSAL ASKING CRACKER BARREL'S BOARD TO IMPLEMENT NONDISCRIMINATORY POLICIES RELATING TO SEXUAL ORIENTATION NORMALLY SEC RULE 14A8 REQUIRES A CORPORATION TO INCLUDE SUCH A PROPOSAL IN ITS PROXY STATEMENT AND TO SCHEDULE A VOTE ON THE MATTER AT ITS ANNUAL MEETING OF SHAREHOLDERS UNLESS CERTAIN EXCEPTIONS APPLY AS A RESULT OF THIS PROCEDURE SHAREHOLDERS ARE SPARED THE COST OF PREPARING THEIR OWN PROXY STATEMENT AND CAN INSTRUCT THE CORPORATION'S MANAGEMENT TO VOTE THE SHAREHOLDERS' PROXIES IN FAVOR OF THE PROPOSAL THE MAJOR EXCEPTION TO THIS SECCREATED SHAREHOLDER RIGHT IS AN EXCLUSION FOR SHAREHOLDER PROPOSALS RELATING TO THE CONDUCT OF ORDINARY BUSINESS OPERATIONS OVER THE YEARS THE SCOPE OF THIS EXCLUSION HAS EXPANDED AND CONTRACTED LIKE AN ACCORDION AS SEC POLICY TOWARD SHAREHOLDER PROPOSALS HAS SHIFTED WITH THE ARRIVAL OF EACH NEW ADMINISTRATION PREDICTABLY CRACKER BARREL REQUESTED PERMISSION FROM THE SEC STAFF TO EXCLUDE THE NYCERS PROPOSAL AND ARGUED THAT THIS ORDINARY BUSINESS EXCLUSION APPLIED TO ITS EMPLOYMENT POLICIES AT LEAST WHERE NO FEDERAL OR STATE ANTIDISCRIMINATION LAW HAD BEEN VIOLATED EQUALLY PREDICTABLY NYCERS RESPONDED THAT DISCRIMINATION COULD NOT BE A MATTER OF ORDINARY BUSINESS AND THAT THE EXCLUSION EXISTED ONLY TO SPARE THE CORPORATION POINTLESS DEBATE OVER NONCONTROVERSIAL PEDESTRIAN ISSUES IN ADDITION NYCERS NOTED THAT CRACKER BARREL'S POLICY HAD GENERATED SUFFICIENT CONTROVERSY AND ADVERSE PUBLICITY TO BE OF CONCERN EVEN TO THOSE SHAREHOLDERS INTERESTED ONLY IN PROFIT MAXIMIZATION LESS PREDICTABLE WAS THE SEC STAFF'S DECISION IN OCTOBER THE STAFF ISSUED A NO ACTION LETTER TO CRACKER BARREL PERMITTING IT TO EXCLUDE THE NYCERS PROPOSAL RATHER THAN NARROWLY DISTINGUISH THIS PARTICULAR CASE THE STAFF ANNOUNCED A CHANGE IN POLICY IN THE FUTURE IT SAID THE FACT THAT A SHAREHOLDER PROPOSAL CONCERNING A COMPANY'S EMPLOYMENT POLICIES AND PRACTICES FOR THE GENERAL WORK FORCE IS TIED TO A SOCIAL ISSUE WILL NO LONGER BE VIEWED AS REMOVING THE PROPOSAL FROM THE REALM OF ORDINARY BUSINESS OPERATIONS OF THE REGISTRANT IN SHORT NO MATTER WHAT THE FORM OF DISCRIMINATION AGAINST GAYS WOMEN RACIAL MINORITIES OR RELIGIOUS GROUPS THE SUBJECT OF EMPLOYMENT POLICIES IS NOW SEEMINGLY OFFLIMITS FOR SHAREHOLDERS SEEKING TO USE RULE 14A8 WHAT LED THE SEC'S STAFF TO THIS POSITION IN PART IT HAD FOUND IT INCREASINGLY DIFFICULT TO DRAW ANY INTELLECTUALLY VALID LINE BETWEEN THOSE EMPLOYMENT PRACTICES THAT WERE LEGITIMATELY TIED TO AN IMPORTANT SOCIAL POLICY WHICH SHAREHOLDERS OUGHT TO BE ABLE TO RESOLVE AND THOSE THAT WERE NOT IN PART IT FEARED THAT IDEOLOGICALLY MOTIVATED SHAREHOLDERS OWNING ONLY A TRIVIAL NUMBER OF SHARES COULD OVERLOAD THE CORPORATION'S PROXY STATEMENT WITH IDIOSYNCRATIC PROPOSALS DISTRACTING SHAREHOLDERS FROM THE COMPANY'S OWN DISCLOSURES FINALLY THE SEC HAD JUST WON AN IMPORTANT JUDICIAL VICTORY IN WHICH THE DC CIRCUIT COURT OF APPEALS HAD INDICATED THAT IT WOULD DEFER TO THE SEC'S DEFINITION OF THE BOUNDARIES OF ORDINARY BUSINESS OPERATIONS IN SHORT THE SEC FELT CONFIDENT ALTHOUGH A BROAD EXCLUSION MAKES LIFE EASIER FOR THE SEC IT NEVER ANSWERS THE BASIC QUESTION OF WHY SHAREHOLDERS AS THE OWNERS OF THE COMPANY SHOULD NOT BE ABLE TO IMPOSE NORMATIVE RESTRICTIONS ON THEIR CORPORATION'S BEHAVIOR THE ONLY COHERENT OBJECTION TO A BROAD READING OF RULE 14A8'S GRANT OF AUTHORITY TO SHAREHOLDERS IS THE DANGER OF THE RULE'S MISUSE BY ZEALOT SHAREHOLDERS WITH NO REAL ECONOMIC STAKE IN THE CORPORATION ADMITTEDLY UNLESS THE RULE IS SOMEHOW LIMITED CORPORATION PROXY STATEMENTS COULD COME TO RESEMBLE THE CLUTTERED BULLETIN BOARDS ONE SEES IN ACADEMIA SO OVERLOADED WITH PLACARDS AND NOTICES THAT ESSENTIAL INFORMATION IS OBSCURED BUT IF THIS IS THE PROBLEM LESS DRASTIC MEANS ARE AVAILABLE TO DEAL WITH IT FOR EXAMPLE THE SEC COULD RAISE THE LEVEL OF SHARE OWNERSHIP NECESSARY TO SUBMIT A SHAREHOLDER PROPOSAL WHICH IS TODAY A MERE 1000 SO THAT ONLY PROPOSALS THAT ATTRACTED SOME MINIMAL LEVEL OF SUPPORT AMONG THE SHAREHOLDERS COULD BE INCLUDED A 1 OWNERSHIP SHARE OR 100000 HURDLE WOULD DISQUALIFY MOST STUDENT ACTIVISTS SUCH A TEST WOULD HARDLY CHILL PUBLIC PENSION FUNDS WHICH ARE SHORT OF NEITHER MORALS NOR MONEY NYCERS FOR EXAMPLE HELD NEARLY 45 MILLION IN CRACKER BARREL STOCK ULTIMATELY THE SEC'S STAFF IS BOTH RIGHT AND WRONG IT IS RIGHT THAT A GOVERNMENT AGENCY CANNOT AND SHOULD NOT ATTEMPT TO DRAW A LINE BETWEEN MORAL SOCIAL AND POLITICAL CONTROVERSIES OF GREATER AND LESSER IMPORTANCE BUT IT IS WRONG NOT TO RECOGNIZE THAT SHAREHOLDERS CAN AND SHOULD DO THIS RULING AN ENTIRE AREA OF CORPORATE ACTIVITY HERE EMPLOYEE RELATIONS OFFLIMITS TO MORAL DEBATE EFFECTIVELY DISENFRANCHISES SHAREHOLDERS IF PRESIDENT CLINTON IS TO BE FAITHFUL TO HIS CAMPAIGN PROMISES TO GAYS WOMEN AND MINORITIES HE AND HIS STAFF SHOULD LOOK FOR AN SEC CHAIRMAN MORE TOLERANT OF SHAREHOLDER ATTEMPTS TO INFLUENCE THEIR OWN CORPORATION THIS IS AN AREA WHERE A SINGLE STROKE OF A PEN OR MORE ACCURATELY A SINGLE PHONE CALL TO THE STAFF CAN TRULY CHANGE THE LAW BY ALLOWING SHAREHOLDERS TO OPPOSE BIAS AND DISCRIMINATION MR COFFEE IS A PROFESSOR OF LAW AT COLUMBIA UNIVERSITY LAW SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR SHAREHOLDERS SHOULD HAVE A SOAPBOX WSJ MARCH 9 1993 9302020086 9303100135 930210 REVIEW & OUTLOOK EDITORIAL KESSLER'S DEVICES THE WORD AROUND WASHINGTON IS THAT BILL CLINTON PLANS TO REAPPOINT DAVID KESSLER AS COMMISSIONER OF THE FOOD AND DRUG ADMINISTRATION MAYBE SOMEONE SHOULD TELL THE PRESIDENT ABOUT THE HAVOC THAT THE KESSLER FDA HAS CAUSED IN THE US MEDICAL DEVICES INDUSTRY DR KESSLER IS THE MAN WHO CLAIMED TO BE HELPING WOMEN BY SIDING WITH THE PLAINTIFF'S BAR AND BANNING MOST SILICONE BREAST IMPLANTS MANY WOMEN ESPECIALLY CANCER PATIENTS DIDN'T FEEL THE SAME WAY BUT THE AFTERSHOCKS FROM THAT MEDIADRENCHED POLITICAL EXERCISE HAVE SINCE ROLLED OVER ALL MEDICAL DEVICES STALLING INNOVATION SENDING US COMPANIES OVERSEAS AND DENYING IMPROVEMENTS TO DOCTORS AND THEIR PATIENTS THE CHART BELOW IS BASED ON THE FDA'S OWN CONFIDENTIAL RECORDS OF ITS BACKLOG FOR APPROVING SOCALLED 510KS WHICH ARE THE INDUSTRY APPLICATIONS FOR MOST MEDICAL DEVICES SEE ACCOMPANYING ILLUSTRATION WSJ FEB 10 1993 THE RECORDS WERE MADE AVAILABLE TO US BY A SOURCE APPALLED AT THE FDA'S PERFORMANCE UNDER FEDERAL LAW 510KS ARE SUPPOSED TO BE APPROVED IN 90 DAYS MANY 510KS AREN'T FOR NEW DEVICES AT ALL BUT ARE FILED FOR NEW USES OF AN OLD DEVICE OR FOR AN IMPROVEMENT IN MATERIALS OR DESIGN IN THE YEAR FROM NOVEMBER 1991 TO LAST NOVEMBER THE NUMBER OF 510K APPLICATIONS PENDING FOR MORE THAN 90 DAYS JUMPED TO 713 FROM TWO OVER THE SAME PERIOD THE AVERAGE NUMBER OF FDA REVIEW DAYS PER 510K JUMPED TO 141 FROM 88 THROW IN THE DAYS A COMPANY SPENDS ANSWERING THE FDA'S QUESTIONS AND THE AVERAGE NUMBER OF DAYS JUMPED TO 175 BY LAST NOVEMBER AND ACCORDING TO ONE SOURCE IS NOW CLOSE TO 200 THE ONSET OF THESE DELAYS IS NO ACCIDENT THEY COINCIDE WITH THE AFTERMATH OF THE KESSLERCONGRESS HAD AGAINST BREAST IMPLANTS WITH THAT SEARING EVENT WORD WENT OUT TO FDA REVIEWERS THAT ALL DEVICES WERE TO GET NEW SCRUTINY JOHN DINGELL ADDED TO THE FEAR BY INVITING SOME AGENCY BUREAUCRATS TO VISIT HIS REEDUCATION CAMP ON CAPITOL HILL REVIEWERS NATURALLY BEGAN TO ASK MORE QUESTIONS DEMAND MORE DATA AND STONEWALL APPLICATIONS THE RESULTING GRIDLOCK HAS BEEN INDUSTRYWIDE AFFECTING EVERYTHING FROM CATHETERS TO IMAGING PRODUCTS FOR ADVANCED SURGERY TISSUE FORCEPS SURGICAL STAPLERS LASERS AND SO ON FEW OF THESE INNOVATIONS ARE LIFESAVING BY THEMSELVES BUT OVER TIME THEY IMPROVE THE QUALITY SAFETY AND COST OF MEDICAL CARE THE MESS IS CONSIDERED A SCANDAL WITHIN THE INDUSTRY AND AMONG DOCTORS BUT IT'S A SIGN OF THE FDA'S REPUTATION FOR VINDICTIVENESS THAT NOT ONE INDUSTRY PERSON WE TALKED TO WOULD GO ON THE RECORD MEANWHILE MR KESSLER'S FRIENDS IN THE PLAINTIFF'S BAR HAVE CAUSED AT LEAST TWO BIG COMPANIES TO STOP SUPPLYING THE BASIC MATERIALS FOR MEDICAL DEVICES DOW CORNING CORP WHICH MADE THE LIQUID SILICONE FOR IMPLANTS NOW PLANS TO STOP SELLING SOLID SILICONE FOR INTERNALBODY USE AS OF MARCH 31 CAROL GENTRY OF THE ST PETERSBURG FLA TIMES HAS BEEN ONE OF THE FEW REPORTERS TO DESCRIBE WHAT THIS MEANS THIS ACTION JEOPARDIZES THE SUPPLY OF SHUNTS USED TO PREVENT BRAIN DAMAGE AND DEATH IN CHILDREN BORN WITH HYDROCEPHALUS OR WATER ON THE BRAIN' OTHER ENDANGERED PRODUCTS INCLUDE ARTIFICIAL FINGER JOINTS AND TENDONS TRACHEOSTOMY TUBES KIDNEY DIALYSIS DEVICES CHESTWOUND DRAINS CERTAIN PACEMAKER LEADS AND SOME CONTACT LENSES DOW SAYS THE SOLID SILICONES ARE SAFE BUT THAT IT HAS TO DO WHAT WE CAN TO LIMIT OUR LIABILITY FROM THE TAINT THE TORT BAR HAS IMPOSED ON ALL SILICONE THE CURRENT ISSUE OF NATIONAL LAW JOURNAL REPORTS THAT THE TRIAL LAWYERS ARE NOW FILING CLASS ACTION SUITS ALLEGING THAT CHILDREN OF MOTHERS WITH IMPLANTS HAVE BEEN HURT BY BREAST MILK MEANWHILE DU PONT HAS JUST SENT A LETTER TO ITS CUSTOMERS ANNOUNCING THAT IT HAS BEGUN TO PHASE OUT THE SALE OF CERTAIN POLYMERS FOR ALL PERMANENT IMPLANTS EG ARTIFICIAL VEINS THE LETTER BLAMES THE UNPREDICTABLE AND EXCESSIVE COSTS OF DOING BUSINESS AND ADVISES THAT IT WANTS TO REDUCE ITS BUSINESS RISKS IN THE HEALTH CARE FIELD TO AN ACCEPTABLE LEVEL THE LETTER ALSO SAYS IT WANTS TO MAINTAIN A POSITIVE RELATIONSHIP WITH THE FDA AND ANY OTHER REGULATORY AGENCIES SO TO KEEP PEACE WITH DAVID KESSLER AND CALL OFF THE TRIAL LAWYERS THE ONLY AMERICAN MAKER OF THESE RAW MATERIALS PREFERS TO DROP THE BUSINESS THE POINT HERE IS ABOUT MORE THAN THE DAMAGE DR KESSLER IS DOING TO A US DEVICES INDUSTRY THAT ACCOUNTS FOR 50 OF THE WORLD MARKET IT'S ABOUT THE RISK THAT REGULATION POSES TO THE NATION'S PUBLIC HEALTH DR KESSLER AND HIS GODFATHERS ON CAPITOL HILL POSE THE ISSUE AS ONE BETWEEN VIRTUE THEIRS AND GREED EVERYONE ELSE'S BUT THE ISSUE REALLY IS ABOUT BALANCING RISK THERE WILL ALWAYS BE SOME RISK WHEN BUSINESSES INTRODUCE NEW DEVICES BECAUSE TECHNOLOGIES SOMETIMES FAIL BUT THERE IS JUST AS MUCH RISK FROM REGULATION THAT DENIES NEW TECHNOLOGIES TO PATIENTS IN NEED IN ITS ZEALOTRY TO MAKE MEDICAL DEVICES RISKFREE THE KESSLER FDA HAS MADE EVERYDAY MEDICINE MUCH RISKIER DAVID KESSLER HAS LOBBIED HARD TO BE REAPPOINTED BY BILL CLINTON AND WE HEAR HE CHARMED HHS SECRETARY DONNA SHALALA IN THEIR FIRST MEETING IF HE IS REAPPOINTED WE'LL KNOW THAT THE REAL CLINTON HEALTH POLICY IS PUTTING LAWYERS FIRST SEE RELATED LETTER LETTERS TO THE EDITOR LIFESAVING DEVICES LANGUISH AT THE FDA WSJ MARCH 9 1993 9302100097 9303100121 930204 REVIEW & OUTLOOK EDITORIAL SOCIAL DUMPING' IN THE OBSCURE GLOSSARY OF EUROSPEAK ONE MAY FIND THE CURIOUS PHRASE SOCIAL DUMPING ONE MAY GUESS AT ITS MEANING BUT IN FACT IT IS A PEJORATIVE TERM APPLIED WHEN LOCAL AND NATIONAL AUTHORITIES FORGET THEIR PLACE AT THE TABLE AND ASSERT A COMPARATIVE ADVANTAGE IN LABOR MARKETS APPARENTLY BRITAIN HAS COMMITTED THE VERY GRIEVOUS SIN OF SOCIAL DUMPING IT HAS CAUSED A TUMULT AFTER THE AMERICAN VACUUM CLEANER MAKER HOOVER ANNOUNCED LAST WEEK THAT IT WOULD CLOSE ITS OPERATIONS IN DIJON FRANCE IN FAVOR OF ITS FACTORY IN CAMBUSLANG SCOTLAND BRITAIN WAS BRANDED YUK A SOCIAL DUMPER BOTH THE EUROPEAN COMMUNITY CHIEF JACQUES DELORS AND THE FRENCH GOVERNMENT ATTACKED BRITAIN FOR ROBBING DIJON OF 600 JOBS EUROPE CANNOT BE CREATED BY UNFAIR AID AND PEOPLE OUTBIDDING EACH OTHER HARRUMPHED THE FRENCH FOREIGN MINISTER ROLAND DUMAS HE THEN DENOUNCED FOREIGN INVESTORS FOR TRYING TO PLAY MEMBER STATES AGAINST EACH OTHER AFTER ACCUSING BRITAIN OF USURPING DIJON'S VACUUM CLEANER JOBS MR DUMAS DEMANDED A REDOUBLED EFFORT TO STRENGTHEN THE EC'S SOCIAL DIMENSION ELISABETH GIGOU FRANCE'S EUROPEAN AFFAIRS MINISTER CALLED FOR A MAXIMUM 48HOUR WORKWEEK THROUGHOUT THE COMMUNITY AND A DIRECTIVE PROVIDING FOR GREATER CONSULTATION BETWEEN MANAGEMENT AND LABOR THE MORE TACTFUL MR DELORS LIMITED HIS SOCIAL POLICY RAIN DANCE TO A CALL TO SAFEGUARD THE COMPETITION POLICY HOOVER'S MOVE WAS ENTIRELY LOGICAL THE DIJON PLANT NEARLY 30 YEARS IN OPERATION WAS ONE OF THREE FACTORIES MAKING VARIOUS VACUUM CLEANERS FOR EUROPE'S MARKETS IN SCOTLAND HOOVER WILL UNIFY ITS MODELS INTO A VACUUM CLEANER TO SERVE ALL OF EUROPE'S MARKETS CAMBUSLANG NEAR GLASGOW HAS AN ALMOST 20 UNEMPLOYMENT RATE WORKERS THERE MAY DEMAND LOWER WAGES THAN WORKERS IN DIJON AND MAY BE LESS PRONE TO STRIKE THAN FRENCH WORKERS HOOVER IS SIMPLY ESTABLISHING ECONOMIES OF SCALE AND TAKING ADVANTAGE OF SCOTLAND'S COMPARATIVE ADVANTAGE IN LABOR MARKETS CONSUMERS WILL HAVE CHEAPER VACUUM CLEANERS AND ONE OF THE COMMUNITY'S MOST DEPRESSED AREAS WILL BENEFIT FROM NEW JOBS OF COURSE FROM FRANCE IT'S HARD TO SEE IT THAT WAY THE HOOVER MOVE COMES ON THE HEELS OF NEWS THAT THE GERMAN TELEVISION MAKER GRUNDIG MAY SWITCH 918 JOBS FROM LORRAINE TO AUSTRIA AND ROCKWELL GRAPHICS SYSTEMS ANNOUNCED RECENTLY THAT IT WILL SWITCH SOME 110 JOBS FROM FRANCE TO BRITAIN SOME BLAME FRANCE'S DEFENSE OF THE FRANC BUT FEW COMPANIES BASE STRATEGIC MOVES WITH EVERY EXCHANGE RATE SHIFT THE EC'S SOCIAL POLICY AIMS TO DEFINE WORKERS' BASIC RIGHTS ENSHRINE WORKER PARTICIPATION IN MANAGEMENT DECISION MAKING SET MINIMUM WAGE GUARANTEES AND MAXIMUM WORKING HOURS THE SOCIAL CHARTER IS EFFECTIVELY PROTECTIONISM MASQUERADING AS A CONCERN FOR EQUAL RIGHTS FOR WORKERS BUT IN FACT IT WOULD REDUCE THE TENDENCY OF NATIONS TO COMPETE WITH EACH OTHER ON THE BASIS OF WHAT THEY CAN OFFER INVESTORS AS THEY SHOULD IN ANY MARKET FEDERATION IN THE US STATES COMPETE FOR INDUSTRY CONSTANTLY TWENTYFIVE YEARS BACK 156 OF AMERICA'S FORTUNE 500 COMPANIES WERE HEADQUARTERED IN NEW YORK NOW 56 ARE TEXAS WHICH WAS ONCE HOME TO SEVEN OF THE 500 NOW HOUSES 39 VARIATIONS IN LABOR COSTS THE COST OF LIVING TAXES INFRASTRUCTURE AND OTHER FACTORS COUNT IN COMPETITIVE BIDDING FOR INDUSTRY WHEN COMPETITION IS TAKEN OUT OF THE EQUATION THE EC BECOMES AN INSTITUTION WHOSE PRIMARY FUNCTION IS REGULATORY IN THIS CASE THE ECONOMIC PLAYING FIELD IS NOT LEVELED TO THE LOWEST COMMON DENOMINATOR THE LEAST AMOUNT OF PROTECTION BUT LEVELED UP SO THAT ALL EC COUNTRIES HAVE TO MEET THE STRINGENT LABOR AND SOCIAL LAWS OF THE TOP THEY SHOULD CALL THAT COMPETITIONDUMPING SEE RELATED LETTER LETTERS TO THE EDITORS LOUSY CONDITIONS BETTER PROFITS WSJ MARCH 9 1993 9302040006 9303100037 930210 INEQUALITY AND ITS CHARMS BY ROBERT J BARRO DURING THE PRESIDENTIAL CAMPAIGN A NUMBER OF WRITERS ARGUED THAT THE SHARE OF THE RICH IN TOTAL INCOME HAD GROWN RAPIDLY WHILE THAT OF THE POOR HAD DECLINED THESE OUTCOMES WERE ASSUMED TO BE BAD AND WERE USUALLY BLAMED AT LEAST IMPLICITLY ON THE POLICIES OF THE REAGAN AND BUSH ADMINISTRATIONS RECENT RESEARCH HAS BROUGHT OUT TWO IMPORTANT DEVELOPMENTS THAT UNDERLIE THE CHANGES IN INCOME DISTRIBUTION THE FIRST WHICH BEGAN WELL BEFORE A REAGAN ADMINISTRATION EVEN LOOKED PROBABLE IN THE EARLY 1970S IS AN INCREASE IN THE SPREAD BETWEEN THE WAGES OF SKILLED AND UNSKILLED WORKERS IN THE 1980S FOR EXAMPLE THE WAGES OF HIGHLY EDUCATED WORKERS ROSE SHARPLY RELATIVE TO THOSE OF LESS EDUCATED WORKERS THIS CHANGING WAGE PATTERN REFLECTS TECHNOLOGICAL ADVANCES INCLUDING THE PROLIFERATION OF COMPUTERS THAT MAKE WORKER SKILL MORE IMPORTANT IN THE PRODUCTION PROCESS IN OTHER WORDS ECONOMIC FORCES ARE AT WORK THAT GOVERNMENTS CANNOT AND SHOULD NOT SEEK TO CONTROL A USEFUL GOVERNMENTAL ROLE IN THIS AREA MIGHT INVOLVE IMPROVED ACCESS TO EDUCATION AND TRAINING NOT EFFORTS TO REDISTRIBUTE INCOME OR POLICIES LIKE TRADE PROTECTION THAT WOULD RETARD THE SPREAD OF NEW TECHNOLOGIES THE SECOND DEVELOPMENT IS A SHARP INCREASE IN THE SHARE OF INCOME RECEIVED BY THE RICHEST INDIVIDUALS RECENT RESEARCH INDICATES THAT CHANGES AT THE TOP OF THE INCOME DISTRIBUTION ARE JUSTIFIABLY TIED TO THE REAGAN PERIOD SPECIFICALLY TO THE TAX REFORMS OF 1981 AND 1986 BUT THAT THE OUTCOMES SHOULD BE VIEWED AS DESIRABLE FOR THE RICHEST TAXPAYERS WHAT MATTERS IS THE MARGINAL TAX RATE AT THE TOP THIS RATE WAS LOWERED ON UNEARNED INCOME BY THE 1981 LAW AND ON EARNED AND UNEARNED INCOME OTHER THAN CAPITAL GAINS BY THE 1986 LAW THE RESPONSE WAS A DRAMATIC INCREASE IN NONWAGE INCOME REPORTED BY THE RICH AFTER THE 1981 LAW AND IN WAGE AND NONWAGE INCOME REPORTED BY THEM AFTER THE 1986 LAW THESE REACTIONS WHICH HAVE BEEN STRONG ENOUGH TO RAISE THE NUMBER OF TAX DOLLARS PAID BY THE VERY RICH ARE THE STUFF OF SUPPLYSIDER DREAMS BUT THE RESULTS HAVE SOMEHOW BEEN TWISTED INTO THE VIEW THAT SUPPLYSIDE ECONOMICS DID NOT WORK BECAUSE AS A MATTER OF ARITHMETIC THE DRAMATIC RISE IN THE INCOME REPORTED BY THE RICH HAD TO SHOW UP AS AN INCREASE IN THE SHARE OF INCOME RECEIVED BY THE RICH MOST RESEARCHERS HAVE RELIED ON INFORMATION ABOUT INCOME DISTRIBUTION FROM THE CONGRESSIONAL BUDGET OFFICE CBO BUT SOME SHORTCOMINGS IN THEIR PROCEDURES HAVE CONFUSED MATTERS THE CBO ADJUSTS THE UNDERLYING INCOME DATA IN WAYS THAT REMAIN MYSTERIOUS TO OUTSIDE OBSERVERS AND THEIR CORRECTIONS FOR CHANGES IN FAMILYSIZE COMPOSITION ARE INDEFENSIBLE THE CALCULATIONS IMPLY THAT A FAMILY WITH A GIVEN TOTAL INCOME IS WORSE OFF IF IT CHOOSES TO HAVE ANOTHER CHILD THIS IS LIKE SAYING THAT A FAMILY IS WORSE OFF IF IT BUYS A TV SET BECAUSE FAMILY INCOME NET OF EXPENDITURES ON TV SETS IS THEREBY REDUCED SIMILARLY THE COMPUTATIONS ASSUME THAT TWO SINGLE ADULTS WHO HAVE CHOSEN TO LIVE SEPARATELY WOULD BE BETTER OFF IF THE GOVERNMENT FORCED THEM TO COHABITATE WE CAN ALSO LEARN MORE ABOUT CHANGES IN LIVING STANDARDS FROM THE DISTRIBUTION OF CONSUMER EXPENDITURE WHICH REFLECTS LONGRUN LEVELS OF INCOME THAN FROM THE DISTRIBUTION OF INCOME IN A SINGLE YEAR DAVID CUTLER AND LAWRENCE KATZ TWO HARVARD ECONOMISTS WHO HAVE UNFORTUNATELY ACCEPTED GOVERNMENT EMPLOYMENT HAVE CALCULATED THE CHANGING DISTRIBUTION OF CONSUMER SPENDING FOR SIX FAMILY TYPES ONE OR TWO ADULTS AND ZERO ONE OR TWO CHILDREN THEY COMPUTE FOR EACH TYPE HOW MUCH OF THE TOTAL PIE OF SPENDING IS ACCOUNTED FOR BY THE 20 WITH THE LEAST SPENDING THE NEXT 20 AND SO ON FOR AVERAGES OVER THE FAMILY TYPES THE SHARE OF THE LOWEST 20 IN TOTAL SPENDING FELL FROM 83 IN 197273 TO 79 IN 1980 AND 70 IN 1988 WHILE THAT OF THE HIGHEST 20 ROSE FROM 369 TO 392 AND 411 THUS IN THE 1980S THE SHARE OF THE RICHEST ONEFIFTH GREW BY ABOUT TWO PERCENTAGE POINTS BY CONTRAST IF ONE LOOKS AT INCOME THEN THE POOREST ONEFIFTH APPEARS MUCH WORSE OFF WITH ONLY 46 OF TOTAL INCOME IN 1989 IN ADDITION THE INCREASE IN THE SHARE OF THE HIGHEST QUINTILE IN THE 1980S BECOMES GREATER ABOUT THREE PERCENTAGE POINTS COMPARED WITH THE EVEN LARGER VALUE OF 4 1/2 PERCENTAGE POINTS REPORTED BY THE CBO THUS IN RELATION TO THE MORE REASONABLE VALUES COMPUTED BY MESSRS CUTLER AND KATZ THE CBO PROCEDURE MORE THAN DOUBLED THE ESTIMATE OF THE GAIN BY THE TOP QUINTILE IN THE 1980S MOREOVER ALL THE ESTIMATES AGREE THAT AT THE BROAD LEVEL OF QUINTILES THE MOVEMENT TOWARD A LESS EQUAL DISTRIBUTION BEGAN IN THE EARLY 1970S MUCH OF THE MEDIA EXCITEMENT HAS CENTERED ON THE NOTION THAT MORE AND MORE OF THE INCOME PIE IS BEING CORNERED BY THE VERY RICH THE FACTS HAVE BEEN CLARIFIED BY DANIEL FEENBERG AND JAMES POTERBA INCOME INEQUALITY AND THE INCOMES OF VERY HIGH INCOME TAXPAYERS EVIDENCE FROM TAX RETURNS NATIONAL BUREAU OF ECONOMIC RESEARCH WORKING PAPER NO 4229 DECEMBER 1992 WHO STUDIED THE BEHAVIOR OF THE 05 OF TAXPAYERS WITH THE HIGHEST ADJUSTED GROSS INCOMES IN 1990 THIS GROUP CONSISTED OF THE 564000 TAX RETURNS WITH INCOMES IN EXCESS OF 258000 THE CHART SHOWS THE SHARE OF THIS RICH GROUP FROM 1951 TO 1990 IN THE NATION'S TOTALS OF WAGE INCOME AND OF A BROADER INCOME MEASURE THE AGGREGATE OF ADJUSTED GROSS INCOMES FROM THE TAX RETURNS FOR WAGES THE SHARE ROSE FROM ITS LOW POINT OF 25 IN 1970 TO 43 IN 1986 JUMPED TO 62 IN 1988 AND THEN CHANGED LITTLE THROUGH 1990 FOR GROSS INCOME THE SHARE GREW FROM A TROUGH OF 53 IN 1973 TO 60 IN 1981 78 IN 1985 92 IN 1986 AND 120 IN 1988 BEFORE FALLING TO 109 IN 1990 ONE CONCLUSION IS THAT THE RECENT INCREASE IN THE SHARE OF THE VERY RICH SHOWS UP IN WAGE INCOME AS WELL AS IN OTHER FORMS OF INCOME SUCH AS INTEREST DIVIDENDS AND CAPITAL GAINS THE KEY FINDING HOWEVER IS THE RESPONSE TO CHANGES IN TAX POLICY THE DRAMATIC INCREASE IN THE RICH GROUP'S SHARE OF WAGES FROM 1986 TO 1988 APPEARS TO BE A RESPONSE TO THE 1986 TAX LAW WHICH SHARPLY LOWERED THE TOP MARGINAL TAX RATE ON EARNED INCOME THE RICH REPORTED A LOT MORE INCOME IN THE FORM OF TAXABLE WAGES ALTHOUGH IT IS NOT YET CLEAR HOW THE EXTRA AMOUNT DIVIDED UP BETWEEN REDUCED TAX AVOIDANCE AND MORE WORK EITHER WAY THE RESPONSE HAS TO BE VIEWED AS DESIRABLE THE SHARE OF THE RICH IN OTHER FORMS OF TAXABLE INCOME ALSO GREW FROM 1985 TO 1988 THE TIMING IS COMPLICATED BY THE SHIFTS OF CAPITALGAIN REALIZATIONS FROM 1986 TO 1985 DUE TO THE RISE IN THE CAPITALGAINS TAX RATE IN 1986 SIMILARLY THE INCREASE IN THE SHARE OF GROSS INCOME FROM 1981 TO 1985 REFLECTS THE CUT IN THE TOP TAX RATE ON UNEARNED INCOME IN THE 1981 LAW THE STRONG RESPONSES OF INCOMES REPORTED BY THE RICH TO TAXRATE CHANGES ACCORD WITH SUPPLYSIDE PREDICTIONS AND INDICATE THAT THE CUTS IN THE TOP MARGINAL TAX RATES WERE A SUCCESS THE EVIDENCE ALSO IMPLIES THAT THE RESTORATION OF HIGHER TAX RATES AT THE TOP AS URGED BY PRESIDENT CLINTON WOULD BE A MISTAKE THE HIGHER TAX RATES WOULD INDUCE THE RICH TO REPORT ENOUGH LESS INCOME SO THAT THE TAXES PAID BY THIS GROUP WOULD FALL ALTHOUGH MEASURED INEQUALITY WOULD DECLINE THIS SOAKING OF THE RICH WOULD NOT BENEFIT THE POOR UNLESS THE POOR WOULD FEEL BETTER SIMPLY BECAUSE THE RICH WERE WORSE OFF I PRESUME HOWEVER THAT ONE GROUP'S ENJOYMENT OF ANOTHER GROUP'S MISERY IS NOT WHAT UNDERLIES MR CLINTON'S VISION OF SHARED SACRIFICES MR BARRO A WALL STREET JOURNAL CONTRIBUTING EDITOR IS AN ECONOMICS PROFESSOR AT HARVARD SEE RELATED LETTER LETTERS TO THE EDITORS EQUAL MISERY THE MAKES MISERABLE MERRIER WSJ MARCH 9 1993 9302100069 9303090194 930309 MARKETSCAN PRIVATELABEL ITEMS BUFFET BRAND LOYALTY BY KATHLEEN DEVENY DURING EVERY ECONOMIC DOWNTURN GROCERY SHOPPERS ABANDON THEIR FAVORITE BRANDS FOR PRODUCTS THEY BELIEVE REPRESENT A BETTER VALUE COME THE UPTURN AND THEY RENEW OLD BRAND LOYALTIES THAT'S THE WAY IT USED TO BE THIS TIME AROUND HOWEVER ECONOMIC IMPROVEMENT IS PROVIDING A NEW PAINFUL REALIZATION FOR MARKETERS DESPITE THE NASCENT RECOVERY GROCERY SHOPPERS ARE STILL LOADING THEIR CARTS WITH SUCH PRIVATELABEL PRODUCTS AS PRESIDENT'S CHOICE BOTTLED WATER D'AGOSTINO GRAPEFRUIT JUICE AND MASTER CHOICE STRAWBERRY PRESERVES AND IN ADDITION TO KNOCKING OFF MAJORBRAND PRODUCTS RETAILERS ARE INCREASINGLY MIMICKING THE MARKETING TACTICS OF THEIR NATIONAL RIVALS HAWKING THEIR OWN STORE BRANDS WITH SOPHISTICATED TELEVISION COMMERCIALS CATCHY RADIO ADS AND GLOSSY MAGAZINES DEVOTED TO EXTOLLING A STORE BRAND INDEED INFORMATION RESOURCES INC'S INFOSCAN SERVICE REPORTS THAT PRIVATELABEL GOODS ACCOUNTED FOR 184 OF ALL UNITS SOLD IN GROCERY STORES AND 145 OF TOTAL SUPERMARKET DOLLAR VOLUME DURING THE 13 WEEKS ENDED DEC 27 DOLLAR SALES OF PRIVATELABEL GOODS GREW 32 COMPARED WITH THE YEAREARLIER PERIOD TWICE THE GROWTH RATE OF NATIONALBRAND RIVALS WHAT'S MORE SALES OF PRIVATELABEL PRODUCTS CONTINUE TO RISE IN CATEGORIES THAT WERE ONCE CONSIDERED BASTIONS OF BRAND LOYALTY PRIVATELABEL CIGARETTES FOR EXAMPLE TOPPED INFORMATION RESOURCES' LIST OF FASTESTGROWING PRIVATELABEL PRODUCTS FOR THE SECOND CONSECUTIVE QUARTER QUARTERLY SUPERMARKET SALES OF THE STOREBRAND CIGARETTES NEARLY TRIPLED TO 549 MILLION MEANWHILE SHIPMENTS OF PHILIP MORRIS CO'S NO 1 MARLBORO BRAND FELL 56 LAST YEAR ITS STEEPEST DROP EVER PHILIP MORRIS EXECUTIVES ADMITTED THEY UNDERESTIMATED CONSUMERS' WILLINGNESS TO SWITCH TO BARGAIN SMOKES SIMILARLY SALES OF PRIVATELABEL COLD ALLERGY AND SINUS REMEDIES SHOT UP 248 TO 282 MILLION DURING THE QUARTER AND SALES OF PRIVATELABEL BOTTLED WATER A PRODUCT DIFFERENTIATED ALMOST EXCLUSIVELY BY ITS BRAND NAME ALSO INCREASED SHARPLY UP 216 TO 49 MILLION A SPOKESWOMAN FOR PERRIER GROUP OF AMERICA WHICH MARKETS THE PERRIER AND POLAND SPRING BRANDS BLAMES THE WEAK ECONOMY AS THE RECOVERY PROGRESSES SHE MAINTAINS SALES OF PRIVATELABEL PRODUCTS WILL SLOW SOME MARKETING GURUS AREN'T SO SURE BECAUSE BOTTLED WATER IS AN ITEM SHOPPERS COULD EASILY SCRATCH FROM THEIR LISTS CONSUMERS' GROWING TASTE FOR STOREBRAND WATER MAY BE A SIGNAL THAT THE MYSTIQUE OF THE NATIONAL BRANDS HAS FADED WHILE SALES OF NOFRILLS PRIVATELABEL PRODUCTS MAY HAVE PEAKED SALES OF PRODUCTS PERCEIVED AS GOOD QUALITY AT A REASONABLE PRICE ARE LIKELY TO CONTINUE TO PROSPER MANY STORE OPERATORS IN RECENT YEARS HAVE UPGRADED THEIR OWN WARES GIVING SHOPPERS A GROWING ARRAY OF TONY PRIVATELABEL PRODUCTS THE LEADER OF THE RUSH INTO UPSCALE PRIVATE LABEL THE PRESIDENT'S CHOICE LINE MARKETED BY CANADIANBASED LOBLAW COS EXPECTS ITS US SALES TO DOUBLE THIS YEAR TO ABOUT 130 MILLION LOBLAW WHICH MARKETS PRESIDENT'S CHOICE PRODUCTS THROUGH ITS OWN STORES IN CANADA AND THROUGH A SINGLE SUPERMARKET CHAIN IN SELECTED US CITIES IS COUNTING ON DEVELOPING TRENDY NEW ITEMS TO STEAL EVEN MORE CUSTOMERS FROM NATIONAL BRANDS COMING TO THE US SOON PASTA SAUCE WITH 25 GROUND SIRLOIN KEY LIME PIE AND EVEN A GARLICFLAVORED DOG BISCUIT MEANT TO REPEL FLEAS THE PRIVATELABEL PRODUCTS THAT HAVE CAUSED THE BIGGEST STIR ARE THE VALUEADDED PRODUCTS CHOCOLATECHIP COOKIES WITH 29 MORE CHOCOLATE CHIPS SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION AND NOWADAYS RETAILERS ARE ALSO MORE AGGRESSIVELY COURTING CONSUMERS THAN EVER BEFORE GREAT ATLANTIC & PACIFIC TEA CO WHOSE HOUSE BRANDS NOW ACCOUNT FOR MORE THAN 20 OF SALES RECENTLY STUFFED THE SECOND EDITION OF A MASTER CHOICE MAGAZINE INSIDE COPIES OF THE SUNDAY NEW YORK TIMES THE GLOSSY MAGAZINE WHICH FEATURES A PROFILE OF THE FOUNDER OF HALLMARK CARDS AND AN ARTICLE ABOUT A WINERY IN NORTHERN CALIFORNIA IS MEANT TO REINFORCE THE UPSCALE IMAGE OF THE CHAIN'S MASTER CHOICE BRAND D'AGOSTINO SUPERMARKETS INC OFTEN FEATURES ITS HOUSE BRANDS IN NEWSPAPER ADS AND HAS ALSO RUN CATCHY RADIO SPOTS THAT TOUT ITS OWN PRODUCTS THE NEW YORKBASED CHAIN OF 25 STORES BEGAN SELLING PRESIDENT'S CHOICE PRODUCTS IN 1988 AND ADDED THE D'AGOSTINO BRAND A YEAR LATER ITS OWN PRODUCTS INCLUDE FRESH PASTAS AND SAUCES AND AN UNPASTEURIZED BEER MEANT TO TASTE LIKE A DRAFT BREW TO SURVIVE RETAILERS HAVE TO HAVE A PRIVATE LABEL BUT TO PROSPER THEY HAVE TO HAVE PREMIUM PRIVATELABEL PRODUCTS SAYS GARY STIBEL A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN WHY BUILD PREMIUM QUALITY INTO A PRODUCT IF YOU'RE NOT GOING TO TELL PEOPLE ABOUT IT 9303090193 930309 MR COFFEE INC TO REDEEM NOTES CLEVELAND MR COFFEE INC SAID IT WILL REDEEM THE 13 MILLION PRINCIPAL AMOUNT OF ITS 165 SENIOR SUBORDINATED EXTENDIBLE RESET NOTES OUTSTANDING THE REDEMPTION DATE IS MARCH 31 THE COMPANY SAID THE NOTES WILL BE REDEEMED AT A PRICE OF 1061875 PLUS ACCRUED AND UNPAID INTEREST MR COFFEE MAKES AUTOMATIC DRIP COFFEE MAKERS COFFEE FILTERS AND OTHER COUNTERTOP KITCHEN APPLIANCES 9303090192 930309 THRIFTS' PUSH INTO INTERSTATE OPERATIONS MAY PROMPT REVIEW OF POLICY FOR BANKS BY FOWLER W MARTIN AND GREG HITT SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A PUSH TOWARD INTERSTATE BRANCH OPERATIONS BY THRIFT INSTITUTIONS COULD PROMPT CONGRESS INTO RECONSIDERING WHETHER TO PERMIT BANKS TO EXTEND THEIR SERVICES BEYOND HOMESTATE BORDERS BANKAMERICA CORP'S THRIFT UNIT ASKED THE FEDERAL OFFICE OF THRIFT SUPERVISION TO LET THE UNIT BRANCH INTO 12 STATES FROM ITS CURRENT BASE IN OREGON THIS MOVE BY THE BIG SAN FRANCISCOBASED BANK COULD SPUR OTHER SAVINGS AND LOAN INSTITUTIONS WHETHER OWNED BY BANKS OR OPERATING INDEPENDENTLY TO FILE SIMILAR APPLICATIONS SINCE LAST MAY WHEN THE OTS REWROTE REGULATIONS THAT EASED THE RESTRICTIONS FOR INTERSTATE BRANCHING OFFICIALS HAVE PREDICTED THAT LARGE BANKS WITH THRIFT UNITS WOULD SEEK TO CREATE THRIFT BRANCHES IN OTHER STATES COMMERCIAL BANKS HAVE LONG BEEN PROHIBITED FROM EXTENDING BRANCH BANK OPERATIONS ACROSS STATE LINES THEY CAN OPERATE IN MORE THAN ONE STATE ONLY BY SETTING UP SEPARATE SUBSIDIARIES WHICH BANKS CONTEND IS COSTLY AND INEFFICIENT THE APPLICATION BY THE BANK OF AMERICA FEDERAL SAVINGS BANK DEMONSTRATES THE POTENTIAL IMPORTANCE OF INTERSTATE BANKING TO THE S&L INDUSTRY SAID HARRIS WEINSTEIN FORMER OTS CHIEF COUNSEL ELLEN LAMB A SPOKESWOMAN FOR THE CONFERENCE OF STATE BANK SUPERVISORS WHICH OPPOSES THE OTS PREEMPTION OF STATE CONTROLS OVER FINANCIAL INSTITUTIONS' ENTRY INTO NEW STATES CALLED THE BANK OF AMERICA MOVE THE CAMEL'S NOSE UNDER THE TENT THE OTS HAS APPROVED 10 INTERSTATE BRANCHING APPLICATIONS SINCE LAST MAY BUT THEY WERE SMALLER IN SCOPE GENERALLY INVOLVING A NONBANKOWNED S&L CREATING BRANCHES IN ONE NEW STATE THE REGULATORY AGENCY HAS OTHER APPLICATIONS PENDING BUT NOT MANY FROM BANKOWNED THRIFTS THERE ARE FEW LARGE BANKS WITH SUCH UNITS A SPOKESWOMAN SAID THE ASSOCIATION OF FINANCIAL SERVICES HOLDING COMPANIES A TRADE GROUP WITH BANK AND THRIFT HOLDING COMPANY MEMBERS SAID THAT 71 BANKS MOSTLY SMALL INSTITUTIONS HAD THRIFT UNITS AS OF LAST SEPTEMBER THE MOVE TOWARD INTERSTATE BRANCHING BY THRIFTS ESPECIALLY THE BANK OF AMERICA UNIT IS LIKELY TO SPARK BANKS TO REVIVE ARGUMENTS THAT THEY SHOULD BE ABLE TO EXPAND COMMERCIAL BANKING TO OTHER STATES AND CONGRESS WHERE THERE HAS BEEN CONSIDERABLE PAST SUPPORT COULD TAKE UP THE ISSUE AGAIN THE BUSH ADMINISTRATION FAVORED INTERSTATE BRANCH BANKING BUT CLINTONADMINISTRATION OFFICIALS HAVE SAID THEY DON'T WANT TO TACKLE SUCH FINANCIALINSTITUTION MATTERS THIS YEAR THOSE OPPOSED TO INTERSTATE BRANCH BANKING SAY THAT IT WOULD ENTAIL THE EXPANSION OF SERVICES OTHER THAN THE HOUSING AND CONSUMER LOANS TO WHICH THRIFTS ARE MOSTLY LIMITED IN ADDITION SMALL COMMUNITY BANKS FEAR THAT LARGE BANKS MAY USE THE THRIFTEXPANSION METHOD TO SIPHON DEPOSITS IN NEW TERRITORIES OTS FOR ITS PART HAS FAVORED INTERSTATE BRANCHING FOR THRIFTS TO DIVERSIFY S&L RISK AND TO REDUCE THE RISK TO THE TAXPAYER THE OFFICE CONTENDS RISKS WOULD BE REDUCED WHEN BANKS OR WELLFUNDED THRIFTS TAKE OVER WEAK S&LS IN OTHER STATES AS WELL AS CREATING THEIR OWN NEW BRANCHES LAST SUMMER THE SENATE PASSED A BILL THAT WOULD HAVE PLACED A TEMPORARY MORATORIUM ON OTS PROCESSING OF APPLICATIONS FOR THRIFT BRANCHES IN NEW STATES THE BILL DIED WHEN THE HOUSE FAILED TO TAKE UP THE MEASURE NOW SEN WENDELL FORD D KY WHO LED LAST YEAR'S FIGHT FOR THE BRANCHING MORATORIUM AND SEN CHRISTOPHER DODD D CONN PLAN TO PUSH LEGISLATION THAT WOULD ALLOW INTERSTATE BANK BRANCHING BUT THOSE MEASURES WOULD GIVE INDIVIDUAL STATES AN OPPORTUNITY TO BLOCK BRANCHING IN THEIR OWN JURISDICTIONS IF THEY CHOOSE ALBERT R KARR CONTRIBUTED TO THIS ARTICLE 9303090189 930309 NIAGARA MOHAWK ASKS FOR MORE FLEXIBILITY TO SET BUSINESS RATES SYRACUSE NY NIAGARA MOHAWK POWER CORP ASKED STATE REGULATORS FOR MORE FLEXIBILITY IN SETTING RATES FOR BUSINESSES REFLECTING GROWING COMPETITION THROUGHOUT THE ELECTRICAL UTILITY INDUSTRY THE INVESTOROWNED UTILITY EXPRESSED CONCERN THAT AN INCREASING NUMBER OF BUSINESSES MAY BE TEMPTED TO GENERATE THEIR OWN POWER USING COGENERATION TECHNOLOGY WHICH CAPTURES HEAT OR STEAM GENERATED BY THE PLANT'S NATURAL OPERATIONS OR SIMPLY PURCHASING THEIR OWN GENERATORS FOR POWER PRODUCTION IT'S AN INDUSTRYWIDE PHENOMENON THE UTILITIES ARE TRYING TO FIND WAYS TO COMPETE WITH GROWING DEREGULATION AND GROWING COMPETITION SAID DAN SCOTTO A UTILITIES ANALYST AT DONALDSON LUFKIN & JENRETTE INC AND NATIVE UTILITIES ARE CUTTING PRICES IN ORDER TO RETAIN LOAD BUT NIAGARA MOHAWK'S REGULATORY ENVIRONMENT DOESN'T ALLOW IT MUCH FLEXIBILITY ON PRICING SINCE PRICES FOR INDUSTRIAL USERS HAVE JUMPED TO ABOUT EIGHT CENTS A KILOWATT HOUR FROM ABOUT SIX CENTS A KILOWATT HOUR IN 1991 MANY COMPANIES ARE LOOKING FOR WAYS TO CUT ENERGY COSTS INCLUDING GENERATING THEIR OWN POWER ACCORDING TO NIAGARA MOHAWK ABOUT 50 OF 235 HEAVY INDUSTRIAL USERS HAVE APPROACHED THE COMPANY TO EXPRESS INTEREST IN PRODUCING THEIR OWN POWER NIAGARA MOHAWK SAID IT WANTS APPROVAL FROM REGULATORS TO MATCH INDEPENDENT COGENERATION RATES THEREBY PROVING ITS CHANCES OF KEEPING LARGE LOAD CUSTOMERS IN ITS SYSTEM IF IT FAILS TO DO SO THE COMPANY SAID OTHER CUSTOMERS MAY HAVE TO BEAR AN INCREASED BURDEN OF THE UTILITY'S FIXED COSTS IT'S NOT WORKED OUT EXACTLY HOW WE WOULD HANDLE THE LOSS OF CUSTOMERS SAID CARL PIETRYKOWSKI PROJECT MANAGER FOR CONSUMER SERVICES RIGHT NOW IT WOULD BE SHARED AMONG CLASSES BUT THERE IS SOME FEAR THAT SHAREHOLDERS MAY BE ASKED TO CARRY SOME OF THE BURDEN THE STATE'S PUBLIC SERVICE COMMISSION WILL REVIEW THE REQUEST WITHIN 75 DAYS 9303090188 930309 SOUTHWEST AIRLINES TRAFFIC DALLAS SOUTHWEST AIRLINES REPORTED FEBRUARY TRAFFIC ROSE 15 FROM LAST YEAR THE NOFRILLS AIRLINE FLEW 114 BILLION REVENUE PASSENGER MILES UP FROM THE PRIOR FEBRUARY'S 9875 MILLION A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED INCREASED TO 648 FROM 633 FOR THE FIRST TWO MONTHS OF THE YEAR TRAFFIC GREW 18 TO 229 BILLION REVENUE PASSENGER MILES FROM 194 BILLION THE YEAR BEFORE LOAD FACTOR INCREASED TO 629 FROM 602 9303090187 930309 COMAIR AIR TRAFFIC CLIMBS 17 CINCINNATI COMAIR HOLDINGS INC SAID 181196 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN FEBRUARY UP 17 FROM 155267 PASSENGERS A YEAR EARLIER FOR THE MONTH REVENUE PASSENGER MILES INCREASED 23 TO 42005000 FROM 34186000 IN FEBRUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE 9303090186 930309 INTERNATIONAL OUTPUT IN GERMAN STATE FALLS DUESSELDORF GERMANY INDUSTRIAL PRODUCTION IN THE GERMAN STATE OF NORTH RHINEWESTPHALIA FELL 6 IN JANUARY FROM THE YEAREARLIER LEVEL ACCORDING TO THE STATE'S STATISTICS OFFICE NORTH RHINEWESTPHALIA INCLUDES THE RHUR VALLEY WHERE MUCH OF GERMANY'S INDUSTRY IS CONCENTRATED THE DECLINE IN INDUSTRIAL OUTPUT WAS SPEARHEADED BY A DROP IN THE PRODUCTION OF CAPITAL GOODS MACHINERY WHICH FELL BY 7 FROM A YEAR EARLIER PRODUCTION OF CONSUMER GOODS FELL BY 4 WHILE FOOD AND SEMILUXURY GOODS OUTPUT WAS OFF 1 OUTPUT BY THE REGION'S MINES PLUNGED BY 9 9303090184 930309 INTERNATIONAL KAUFHOF SAYS EARNINGS ARE UP COLOGNE GERMANY KAUFHOF HOLDING AG A LEADING GERMAN RETAILER SAID 1992 GROUP PROFIT WAS HIGHER THAN THE PREVIOUS YEAR'S LEVEL OF 1663 MILLION MARKS 997 MILLION THE GROUP DIDN'T GIVE AN EXACT PROFIT FIGURE THE PROFIT GROWTH WAS SLIGHTLY LOWER THAN THE GROUP'S 1992 SALES GROWTH OF 15 TO 2044 BILLION MARKS FROM THE PREVIOUS YEAR'S 1785 BILLION KAUFHOF SAID 9303090183 930309 WHO'S NEWS METCOIL SYSTEMS CORP METCOIL SYSTEMS CORP CEDAR RAPIDS IOWA GARY M NEAL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WATLOW ELECTRIC MANUFACTURING CO WAS NAMED A DIRECTOR OF THIS SUPPLIER OF SHEET METAL PROCESSING EQUIPMENT SUCCEEDING EMIL J KOE WHO DIED 9303090182 930309 INTERNATIONAL AIRBUS GETS CONTRACT PARIS AIRBUS INDUSTRIE SAID IT RECEIVED AN ORDER FROM AIR MAURITIUS FOR THREE OF ITS A340300 LONGRANGE COMMERCIAL JETS THE AIRLINE HAS ALSO DECIDED TO TAKE OUT A SHORTTERM LEASE WITH INTERNATIONAL LEASE FINANCE CORP FOR TWO AIRCRAFT OF THE SAME TYPE AIRBUS SAID THE EUROPEAN CONSORTIUM DIDN'T GIVE A VALUE FOR THE ORDER BUT INDUSTRY SOURCES ESTIMATED THAT THE PRICE OF AN A340300 IS CURRENTLY 105 MILLION THE FOURENGINED A340 IS AIRBUS'S NEWEST AIRCRAFT 9303090180 930309 WHO'S NEWS THOR INDUSTRIES THOR INDUSTRIES INC JACKSON CENTER OHIO C DAVID HOEFER 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF RECREATIONAL VEHICLES AND SMALL AND MIDSIZE BUSES INCREASING THE SIZE OF THE BOARD TO FIVE MR HOEFER IS GROUP PRESIDENT OF THE COMPANY'S DUTCHMEN MANUFACTURINGFOUR WINDS INTERNATIONAL DIVISION 9303090178 930309 LEISURE & ARTS THEATER VINTAGE NEIL SIMON UPDATED FOR THE '90S BY EDWIN WILSON NEW YORK THE MUSICAL OKLAHOMA OPENED 50 YEARS AGO THIS MONTH BEGINNING WITH THAT FIRST COLLABORATION IN 1943 RODGERS AND HAMMERSTEIN DOMINATED THE AMERICAN MUSICAL UNTIL WELL BEYOND OSCAR HAMMERSTEIN'S DEATH IN 1960 AFTER THAT THINGS CHANGED IN AMERICAN THEATER THE 1970S WERE THE DECADE OF THE CONCEPT MUSICAL IN WHICH THEME TRIUMPHED OVER STORY AND THE '80S WERE THE ERA OF THE BRITISH BLOCKBUSTER BUT NOW WE ARE IN THE '90S AND WHERE DO WE GO FROM HERE NO ONE KNOWS WHICH IS WHY THOSE RESPONSIBLE FOR THE GOODBYE GIRL THE NEW MUSICAL AT THE MARQUIS THEATRE HAVE LOOKED TO THE PAST TO TRY TO REGAIN THEIR FOOTING THE BOOK BY NEIL SIMON IS BASED ON HIS 1977 MOVIE OF THE SAME NAME STARRING RICHARD DREYFUSS AND MARSHA MASON THE MUSIC IS BY MARVIN HAMLISCH WHO NOT ONLY WROTE THE SCORE FOR A CHORUS LINE BUT COLLABORATED WITH MR SIMON ON ANOTHER BROADWAY MUSICAL THEY'RE PLAYING OUR SONG THE LYRICS ARE BY A COMPARATIVE NEWCOMER DAVID ZIPPEL AND THE MUSICAL DIRECTION IS BY GRACIELA DANIELE BUT THE OLDEST OF THE OLD HANDS IS THE DIRECTOR 73YEAROLD MICHAEL KIDD WHO CHOREOGRAPHED AND DIRECTED A NUMBER OF OUTSTANDING PRODUCTIONS FROM THE '40S '50S AND '60S BUT HAS NOT DIRECTED ON BROADWAY IN MORE THAN A DECADE THE STORY IS ESSENTIALLY THE SAME AS IN THE FILM PAULA BERNADETTE PETERS HAS JUST BEEN DESERTED BY THE LATEST IN A STRING OF BOYFRIENDS IN THIS CASE AN ACTOR WHO HAS SUDDENLY LEFT FOR SPAIN BEFORE LEAVING THOUGH THE EXBOYFRIEND SUBLETS HIS NEW YORK APARTMENT TO A CHICAGO ACTOR ELLIOT MARTIN SHORT PAULA WHO IS OUT OF WORK AND HAS A 12YEAROLD DAUGHTER LUCY TAMMY MINOFF ON HER HANDS REFUSES TO LEAVE THE APARTMENT THE COMPROMISE IS THAT PAULA AND ELLIOT WILL SHARE THE APARTMENT RELUCTANTLY TO ACCOMMODATE '90S SENSIBILITIES MR SIMON HAS MADE A FEW CHANGES IN THE SCRIPT IN THE ORIGINAL PAULA DID NOT HAVE AN ACTIVE CAREER BUT HERE SHE IS A DANCER AND WOULDBE CHOREOGRAPHER EVEN MORE NOTABLE IS THE SWITCH IN AN OFFBROADWAY PRODUCTION OF RICHARD III THE PLAY ELLIOT HAS COME TO NEW YORK TO PERFORM IN WHEN HE BEGINS REHEARSALS HE DISCOVERS THAT THE INSANE HUNGARIAN DIRECTOR MARK CHRISTOPHER JONES WANTS HIM TO PLAY RICHARD AS IF HE WERE A WOMAN A MAN PLAYING A WOMAN PLAYING A MAN THE DIRECTOR TELLS HIM IN THE FILM ELLIOT WAS TO PLAY RICHARD AS A HOMOSEXUAL BUT THIS TIME AROUND MR SIMON DID NOT WANT TO OFFEND THE GAY COMMUNITY AND SO HE CHANGED TO THE MANWOMANMAN IDEA IF A FEW IDEAS IN THE GOODBYE GIRL HAVE BEEN UPDATED ITS STYLISTIC APPROACH HAS NOT IN TERMS OF SCENERY SONGS AND DANCES IT'S THE SAME KIND OF THING WE SAW ON BROADWAY 25 YEARS AGO BECAUSE IT HAS BEEN MOUNTED BY PROFESSIONALS IT OFFERS A GOOD DEAL OF SOLID IF PREDICTABLE ENTERTAINMENT WHAT GIVES THE SHOW ITS GREATEST LIFT THOUGH IS NOT ITS MATERIAL BUT ITS STARS MS PETERS AND MR SHORT IN ONE RESPECT THEIR APPEAL WORKS AGAINST THE PREMISE OF THE PLAY THESE TWO ARE SUPPOSED TO DISLIKE EACH OTHER INTENSELY BUT THEY ARE SO ENGAGING AND ENDEARING THAT WE KNOW THEY CANNOT STAY APART FOR LONG BECAUSE BOTH PAULA AND ELLIOT ARE IN SHOW BUSINESS THERE ARE NUMEROUS OPPORTUNITIES FOR THEM TO TAKE PART IN SPECIAL NUMBERS NOT ONLY ELLIOT'S ILLFATED RICHARD III BUT DANCE ROUTINES FOR PAULA AND MR SHORT AND MS PETERS MAKE THE MOST OF SUCH MOMENTS MS PETERS HAS LONG SINCE ESTABLISHED HER CREDENTIALS AS A MUSICALTHEATER TALENT BUT MR SHORT IS MAKING HIS BROADWAY DEBUT AND HE IS A JOYOUS DISCOVERY A SINGER AND A GENUINE COMIC TALENT HE IS ALSO A CONVINCING ACTOR THE HIGHLIGHT OF THE EVENING IS A ROOFTOP COURTSHIP SCENE BETWEEN THESE TWO IN WHICH MR SHORT IMPERSONATES NOT ONLY HUMPHREY BOGART AND CARY GRANT BUT IMITATES FRED ASTAIRE DANCING WITH AN INSOUCIANCE AND SELFDEPRECATING CHARM THAT ARE HARD TO RESIST IF MUSICAL THEATER HAS UNDERGONE A NUMBER OF TRANSITIONS THROUGH THE YEARS ANOTHER ART FORM HAS NOT CLOWNING HAS REMAINED RELATIVELY THE SAME FOR AT LEAST 2000 YEARS AND MAYBE LONGER FROM ROMAN MIMES TO MEDIEVAL JUGGLERS TO MODERNDAY CIRCUS CLOWNS TWO INSPIRED INHERITORS OF THIS TRADITION ARE BILL IRWIN AND DAVID SHINER WHO HAVE JUST OPENED IN A TWOMAN SHOW CALLED FOOL MOON AT THE RICHARD RODGERS THEATRE BOTH MR IRWIN AND MR SHINER HAVE BEEN SEEN IN NEW YORK BEFORE BUT NEVER TOGETHER MR IRWIN HAS PREVIOUSLY DEMONSTRATED AN UNCANNY ABILITY TO COMBINE INNOCENCE AND SHREWD INTELLIGENCE A CAREFREE SPIRIT WITH AN INCREDIBLE PHYSICAL AGILITY MR SHINER AN AMERICAN WHO COMES TO THE STAGE BY WAY OF EUROPEAN CIRCUSES HAS BEEN SEEN ACROSS THE COUNTRY PERFORMING WITH THE CANADIAN GROUP CIRQUE DU SOLEIL THE TWO MEN GOT TOGETHER LAST SUMMER AT A LINCOLN CENTER FESTIVAL CALLED SERIOUS FUN IT IS A MATCH MADE IN CLOWN HEAVEN MR IRWIN'S GUILELESS SENSE OF WONDER IS A PERFECT FOIL FOR MR SHINER'S ACERBIC AGGRESSIVE DROLLERY WEARING VARIATIONS ON THE TRADITIONAL BAGGY PANTS AND CUTAWAY COATS OF CLOWNS AND A WIDE RANGE OF HATS THE TWO MEN PERFORM ENTIRELY IN PANTOMIME THEY CAN SHRINK OR EXPAND BEFORE YOUR EYES THEY CAN FALL OUT OF BALCONIES OR BE PULLED ACROSS THE STAGE AS IF THEY WERE HORIZONTAL BUNGEE JUMPERS AND THEY CAN DO A SOFT SHOE WITH THE BEST DANCERS ON BROADWAY THEIR COMIC TIMING IS IMPECCABLE MR SHINER OPENS THE EVENING CLIMBING OVER A ROW OF SEATS OSTENSIBLY LOOKING FOR HIS OWN SEAT ALONG THE WAY HE THROWS HIS LEG OVER THE HEADS AND SHOULDERS OF EVERYONE IN SIGHT GETS INTO HITTING MATCHES WITH HIS HAT AND GENERALLY CAUSES HILARIOUS HAVOC AT OTHER POINTS AUDIENCE MEMBERS ARE BROUGHT ONSTAGE TO BECOME PART OF A SILENTMOVIE ROUTINE AND A COURTSHIP IN A RESTAURANT ACCOMPANYING THE TWO MEN IN THEIR ANTICS IS A COUNTRYMUSIC GROUP CALLED THE RED CLAY RAMBLERS FOOL MOON IS A CANDIDATE FOR THE FUNNIEST EVENING ON BROADWAY AND ONE THAT ALL GENERATIONS FROM THE YOUNGEST TO THE OLDEST WILL FIND EXHILARATING 9303090177 930309 IBERIA BEGINS BONUS PROGRAM NEW YORK IBERIA AIR LINES OF SPAIN ANNOUNCED ITS FIRST FREQUENTFLIER PROGRAM FOR THE US OFFERING TRAVELERS PREMIUMS SUCH AS ELECTRONICS PRODUCTS FOR FULLFARE TRAVEL TO EUROPE AND CENTRAL AMERICA IN A FOURMONTH EXPERIMENT NICHOLAS SLOVAK IBERIA'S VICE PRESIDENT FOR SALES IN THE US AND CANADA SAID THE AIRLINE SEEKS TO INCREASE RIDERSHIP FROM THE US BY 40 IBERIA CURRENTLY PARTICIPATES IN OTHER CARRIERS' FREQUENTFLIER PROGRAMS IN THE US 9303090176 930309 HEES POSTS 80 DROP IN EARNINGS FOR 1992 AFTER MAJOR CHARGE TORONTO HEES INTERNATIONAL BANCORP POSTED AN 80 DECLINE IN PROFIT FOR 1992 AFTER A 914 MILLION CANADIAN DOLLAR US733 MILLION CHARGE FOR RESTRUCTURINGS AT ITS AFFILIATES AND POTENTIAL PROBLEMS IN ITS OWN LOAN PORTFOLIO HEES THE KEY HOLDING COMPANY IN THE CORPORATE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN REPORTED NET INCOME OF C363 MILLION OR 10 CANADIAN CENTS A SHARE ITS POOREST FINANCIAL PERFORMANCE IN ABOUT A DECADE IN 1991 THE COMPANY EARNED C1784 MILLION OR C173 A SHARE WHICH INCLUDED C456 MILLION IN GAINS FROM INVESTMENTS HEES SAID THE CHARGES INCLUDED C514 MILLION FOR LOSSES AT ITS BRASCAN LTD AND CARENA DEVELOPMENTS LTD AFFILIATES AS WELL AS A C40 MILLION PROVISION AGAINST POSSIBLE PROBLEMS IN HEES'S MERCHANTBANKING LOAN PORTFOLIO THE LOAN PROVISION REPRESENTS ABOUT 3 OF THE PORTFOLIO THE COMPANY SAID INVESTORS AND ANALYSTS REPEATEDLY HAVE VOICED CONCERNS ABOUT THE RISKINESS OF LOANS EXTENDED BY HEES AS MERCHANT BANK ROBERT HARDING HEES'S CHIEF OPERATING OFFICER SAID HE IS QUITE COMFORTABLE WITH THE PROVISION EVEN THOUGH ONE OF THE BRONFMAN GROUP'S MOST TROUBLED COMPANIES ROYAL TRUSTCO LTD HAS YET TO REPORT RESULTS FOR THE YEAR MR HARDING SAID THAT ROYAL TRUSTCO ALTHOUGH CONTROLLED INDIRECTLY BY HEES ACCOUNTS FOR ONLY A SMALL PORTION OF HEES'S EARNINGS HEES SAID IT EXPECTS ITS RESULTS TO RECOVER IN 1993 AS FAVORABLE EXCHANGE RATES AND ECONOMIC RECOVERY HELP PERFORMANCE AT MANY OF ITS REMAINING OPERATING COMPANIES SUCH AS RESOURCES GIANT NORANDA INC PETER AND EDWARD BRONFMAN ARE COUSINS OF MONTREAL'S BRONFMAN DISTILLING DYNASTY BUT THE TWO FAMILIES HAVE NO BUSINESS INTERESTS IN COMMON 9303090175 930309 WHO'S NEWS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON JOHN W ELIAS FORMERLY A GROUP VICE PRESIDENT FOR AMOCO CORP WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR ELIAS 52 YEARS OLD WILL JOIN SEAGULL APRIL 1 AND WILL BE A NOMINEE FOR A POSITION ON THE BOARD AT THE COMPANY'S ANNUAL MEETING MAY 11 MR ELIAS WOULD INCREASE THE BOARD TO 12 MEMBERS 9303090173 930309 INTERNATIONAL GERMAN TRADE SURPLUS GROWS WIESBADEN GERMANY THE MERCHANDISE TRADE SURPLUS IN GERMANY WIDENED IN 1992 BUT REMAINED WEAK COMPARED WITH TRADE SURPLUSES BEFORE UNIFICATION THE FEDERAL STATISTICS OFFICE REPORTED THAT THE PANGERMAN TRADE SURPLUS GREW BY 109 BILLION MARKS IN 1992 TO 328 BILLION MARKS 197 MILLION FROM 219 BILLION MARKS IN 1991 THAT IS WELL BELOW THE RECORD 1989 TRADE SURPLUS OF 1345 BILLION MARKS ACCORDING TO NUMBERS FROM WHAT WAS THEN EAST AND WEST GERMANY GERMANY'S CURRENTACCOUNT DEFICIT WIDENED BY 63 BILLION MARKS IN 1992 TO 392 BILLION MARKS FROM 329 BILLION MARKS EXPORTS ROSE 48 BILLION MARKS OR 07 IN 1992 TO 6706 BILLION MARKS AFTER FALLING 22 IN 1991 THE STATISTICS AGENCY SAID 9303090172 930309 INTERNATIONAL SPAIN'S CAR SALES FELL IN FEBRUARY MADRID SPANISH NEW CAR SALES TUMBLED 33 IN FEBRUARY FROM A YEAR EARLIER AND DROPPED 43 DURING THE FIRST TWO MONTHS OF THE YEAR SAID ANFAC THE SPANISH ASSOCIATION OF CAR MAKERS ANFAC SAID THE NUMBER OF VEHICLES SOLD DROPPED TO 58448 IN FEBRUARY FROM 87042 IN THE SAME MONTH A YEAR EARLIER WHILE THE NUMBER OF CARS SOLD IN THE FIRST TWO MONTHS OF THIS YEAR FELL TO 98808 FROM 172490 IN THE SAME PERIOD A YEAR EARLIER ANFAC SAID IMPORTS ACCOUNTED FOR 30725 OF THE CARS SOLD IN FEBRUARY WHILE IMPORTS IN THE FIRST TWO MONTHS ACCOUNTED FOR 51336 OF THE CARS SOLD OF THE FEBRUARY IMPORTS 2615 WERE JAPANESEMADE AND DURING THE FIRST TWO MONTHS OF THE YEAR 4363 OF THE IMPORTS WERE JAPANESEMADE 9303090171 930309 WHO'S NEWS SAFETYKLEEN CORP SAFETYKLEEN CORP ELGIN ILL JOHN G JOHNSON 52 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF ARCO CHEMICAL CO AND PRESIDENT OF ITS ARCO CHEMICAL AMERICAS CO UNIT WAS NAMED ASSISTANT TO DONALD W BRINCKMAN THE CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT ALSO F HENRY HABICHT II 39 FORMERLY DEPUTY ADMINISTRATOR US ENVIRONMENTAL PROTECTION AGENCY WAS NAMED SENIOR VICE PRESIDENT OF THIS RECYCLER OF AUTOMOTIVE AND INDUSTRIAL HAZARDOUS AND NONHAZARDOUS WASTE FLUIDS 9303090169 930309 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 ASSOCIATES CORP OF NORTH AMERICA 300 MILLION ISSUE OF NOTES DUE MARCH 15 2000 WAS PRICED AT PAR TO YIELD 6 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 54 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SELLING CONCESSION IS 275 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 15 FLAT ASSOCIATES CORP IS A UNIT OF FORD MOTOR CO GENEVA STEEL 135 MILLION ISSUE OF SENIOR NOTES DUE MARCH 15 2001 WAS PRICED AT PAR TO YIELD 11125 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC GROSS SPREAD IS 30 AND SELLING CONCESSION IS 18 DELIVERY IS SCHEDULED FOR MARCH 16 FLAT PANHANDLE EASTERN PIPE LINE CO 100 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2023 WAS PRICED AT PAR TO YIELD 795 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 125 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR MARCH 15 FLAT PANHANDLE EASTERN PIPE LINE IS A UNIT OF PANHANDLE EASTERN CORP FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2003 WAS PRICED AT PAR TO YIELD 63 THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS SELLING CONCESSION IS 250 AND REALLOWANCE IS 2 DELIVERY IS SCHEDULED FOR MARCH 15 FLAT MAYFAIR SUPER MARKETS INC 75 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE MARCH 30 2003 WAS PRICED AT PAR TO YIELD 1175 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH BEAR STEARNS & CO GROSS SPREAD IS 2750 DELIVERY IS SCHEDULED FOR MARCH 15 FLAT FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1497 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 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES APRIL 30 SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY 2897 MILLION SERIES 1993A POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS HAVE BEEN REPRICED BY A MORGAN STANLEY & CO INC GROUP YIELDS FOR BONDS DUE IN 199498 200609 2012 AND 2016 WERE LOWERED BY 3 TO 10 BASIS POINTS DUE TO STRONG DEMAND YIELDS NOW RANGE FROM 230 IN 1994 TO 552 IN 2016 MOODY'S RATED THE OFFERING SINGLEA1 S&P HAS ASSIGNED A SINGLEAPLUS RATING AND DUFF & PHELPS HAS ASSIGNED A SINGLEAPLUS RATING BOSTON MASS WATER & SEWER COMMISSION 1993 SERIES A GENERAL REVENUE BOND ISSUE HAS BEEN RESTRUCTURED BY A MERRILL LYNCH & CO GROUP THE TOTAL AMOUNT OF THE OFFERING WAS RAISED TO 1018 MILLION FROM 1011 MILLION A NEW 2009 SERIAL BOND MATURITY HAS BEEN ADDED THOSE 540 BONDS ARE PRICED TO YIELD 545 ALSO THE 2013 TERM BONDS HAVE BEEN REPLACED BY 2011 BONDS THE 525 SECURITIES ARE STILL PRICED TO YIELD 550 OVERALL YIELDS NOW RANGE FROM 220 IN 1993 TO 550 IN 2011 AND 2019 MOODY'S HAS RATED THE ISSUE SINGLEA AND S&P HAS ASSIGNED A SINGLEAMINUS RATING BONDS DUE IN 2019 ARE NONCALLABLE ALL OTHER BONDS ARE CALLABLE AT 102 ON NOV 1 2003 AND WILL DECLINE TO PAR IN 2005 MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY 736 MILLION SERIES 1993 REVENUE BONDS WERE REPRICED BY A FIRST CHICAGO CAPITAL MARKETS INC GROUP YIELDS FOR BONDS DUE IN 2008 2013 AND 2023 WERE LOWERED 2 TO 5 BASIS POINTS DUE TO STRONG DEMAND OVERALL YIELDS NOW RANGE FROM 3 IN 1995 TO 548 IN 2023 THE INITIAL SCALE OF YIELDS WAS 300 IN 1995 TO 550 IN 2023 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY A TRIPLEA RATING FROM BOTH MOODY'S AND S&P THIS OFFERING IS FOR THE ANNE ARUNDEL MEDICAL CENTER PAYLESS CASHWAYS INC AN INITIAL OFFERING OF 28 MILLION SHARES WAS PRICED AT 1275 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GROSS SPREAD IS 72 CENTS SELLING CONCESSION IS 43 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR MARCH 15 US CAN CORP AN INITIAL OFFERING OF 555 MILLION SHARES WAS PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC US CAN WILL OFFER 4450725 OF THE SHARES GROSS SPREAD IS 84 CENTS SELLING CONCESSION IS 50 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY PHYSICAL WITH PENALTY IS SCHEDULED FOR MARCH 15 EMC CORP AN OFFERING OF 45 MILLION COMMON SHARES WAS PRICED AT 24 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO GROSS SPREAD IS 90 CENTS SELLING CONCESSION IS 54 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR MARCH 15 KINGDOM OF SWEDEN SOVEREIGN FOUR BILLION FRENCH FRANCS OF ZEROCOUPON EUROBONDS DUE APRIL 1 2003 AT ISSUE PRICE 4965 VIA PARIBAS LTD REOFFERED AT 4865 TO YIELD 747 A MARGIN OF 24 BASIS POINTS ABOVE COMPARABLE FRENCH GOVERNMENT BOND FEES 125 POINTS CREDIT LOCAL DE FRANCE FRENCH AGENCY ONE BILLION FRENCH FRANCS OF 4 EUROBONDS DUE APRIL 14 2003 WITH PURCHASE WARRANTS ON FRENCH GOVERNMENT BOND ATTACHED VIA SOCIETE DE BANQUE SUISSE SA SWISS BANK CORP FRANCE EACH 10000 FRANC BOND COMES WITH 60 WARRANTS ATTACHED TWO WARRANTS EXERCISABLE TO BUY ONE 2000 FRANC 850 FRENCH GOVERNMENT BOND DUE APRIL 2003 AT STRIKE PRICE OF 10880 WARRANTS EUROPEAN STYLE AND EXERCISABLE ON APRIL 13 1995 ONLY FEES 050 POINT CZECH NATIONAL BANK CZECHOSLOVAKIA 300 MILLION OF 7 EUROBONDS DUE APRIL 6 1996 AT ISSUE AND REOFFER PRICE OF 9983 VIA NOMURA INTERNATIONAL PLC BONDS YIELD 7065 AT REOFFER A SPREAD OF 272 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1125 VEBA INTERNATIONAL FINANCE NV GERMAN PARENT 300 MILLION OF 6 EUROBONDS DUE APRIL 6 2000 WITH EQUITYPURCHASE WARRANTS ATTACHED VIA DEUTSCHE BANK CAPITAL MARKETS LTD EACH 5000 BOND CARRIES 28 WARRANTS SPLIT INTO PACKETS OF ONE SEVEN AND 20 CERTIFICATES EACH WARRANT EXERCISABLE TO BUY ONE VEBA AG SHARE AT EXERCISE PRICE OF 379 MARKS PER SHARE FOREIGN EXCHANGE RATE FIXED AT 16634 MARKS TO THE DOLLAR ISSUE PRICE 11650 GIVING EXERCISE PREMIUM FOR WARRANTS OF 133 GUARANTOR VEBA AG FEES 225 POINTS REPUBLIC OF VENEZUELA VENEZUELA 130 MILLION OF 9125 EUROBONDS DUE MARCH 11 1996 AT ISSUE PRICE PAR A MARGIN OF 482 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE VIA SANTANDER INVESTMENT BANK AND CORPORACION FINANCIERA DEL VALLE FEES ONE POINT INTEREST PAYABLE SEMIANNUALLY LANDESKREDITBANK BADENWUERRTEMBERG GERMAN AGENCY 100 MILLION OF STRUCTURED BONDS DUE APRIL 5 2000 AT REOFFER PRICE OF 99875 VIA LEHMAN BROTHERS INTERNATIONAL LTD COUPON PAYABLE SEMIANNUALLY UNDER FORMULA 10YEAR CONSTANT MATURITY TREASURY MULTIPLIED BY 50 PLUS 145 BASIS POINTS WITH MINIMUM OF 5 AND MAXIMUM OF 28 FEES 045 POINT BANK NEDERLANDSE GEMEENTEN DUTCH AGENCY 500 MILLION DUTCH GUILDERS OF 6625 EUROBONDS DUE APRIL 5 2001 AT ISSUE PRICE 10072 VIA RABOBANK NEDERLAND NV REOFFERED AT 9997 TO YIELD 663 A MARGIN OF 13 BASIS POINTS ABOVE COMPARABLE DUTCH GOVERNMENT NOTE FEES ONE POINT HALIFAX BUILDING SOCIETY UK 150 MILLION OF 7875 PARTLY PAID EUROBONDS DUE APRIL 14 2000 VIA CREDIT SUISSE FIRST BOSTON LTD ISSUE PRICE OF 2168 OF PAR REOFFERED AT 2013 A MARGIN OF 70 BASIS POINTS ABOVE COMPARABLE UK GILT FEES 1875 CARLSBERG FINANS AS DANISH PARENT 100 MILLION OF 725 EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE OF 10125 VIA JP MORGAN SECURITIES REOFFERED AT 9975 TO YIELD 731 A MARGIN OF 68 BASIS POINTS ABOVE COMPARABLE UK GILT GUARANTOR CARLSBERG AS FEES 1875 POINTS DRESDNER INTERNATIONAL FINANCE PLC DUBLIN GERMAN PARENT 150 MILLION MARKS OF FLOATINGRATE EURONOTES DUE MARCH 25 2003 AT ISSUE PRICE 102175 VIA DRESDNER BANK AG REOFFERED AT PAR COUPON PAYABLE AT 950 AFTER FIRST YEAR AND THEN SEMIANNUALLY AT 12 MINUS PREVAILING SIXMONTH LIBOR FOR MARKS GUARANTOR DRESDNER BANK AG FEES 250 NORDIC INVESTMENT BANK 100 MILLION MARKS OF FLOATINGRATE EURONOTES DUE APRIL 7 2003 AT ISSUE PRICE 10115 VIA IBJ DEUTSCHELAND GMBH REOFFERED AT PAR COUPON PAYABLE AT 10 FOR FIRST YEAR AND THEN SEMIANNUALLY AT 12 MINUS PREVAILING SIXMONTH LIBOR FOR MARKS FEES 150 THE BANK OF ENGLAND UK TAP OFFERINGS ON ALREADYOUTSTANDING GILT ISSUES AMOUNTING TO A TOTAL OF 700 MILLION SALES OF THE ADDITIONAL GILTS WILL BEGIN TUESDAY THE TAPS BEING OFFERED ARE 100 MILLION OF 675 TREASURY LOAN DUE 199598 AT 100 26/32 300 MILLION OF 9 CONVERSION GILTS DUE 2000 AT 110 27/32 300 MILLION OF 95 CONVERSION GILTS DUE 2004 AT 112 8/32 IN ADDITION 100 MILLION OF THE 9 OF 2000 AND 100 MILLION POUNDS OF THE 950 OF 2004 WILL BE RESERVED FOR THE NATIONAL DEBT COMMISSIONERS WHICH IS THE BANK OF ENGLAND'S DEBT MANAGEMENT SECTION MAYFAIR SUPER MARKETS INC WAS GIVEN AN INITIAL RATING OF SINGLEB3 BY MOODY'S INVESTORS SERVICE INC FOR A 75 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE 2003 IN TUESDAY'S NEW SECURITIES ISSUES COLUMN THE RATING WAS INCORRECTLY STATED AS SINGLEB2 9303090168 930309 COSMETIC CENTER FEBRUARY SALES SAVAGE MD COSMETIC CENTER INC SAID FEBRUARY RETAIL SALES OF COSMETIC PRODUCTS INCREASED 72 TO 89 MILLION WHILE COMPARABLESTORE SALES DECLINED 38 TO 75 MILLION 9303090166 930309 ENTERPRISE BY EUGENE CARLSON SMALL COMPANIES IN AUSTIN TEXAS GET TOPTOBOTTOM CRITIQUES ON QUALITY MANAGEMENT WHEN THEY ENTER THE CITY'S MINIBALDRIGE COMPETITION IT'S SIMILAR TO THE RIGOROUS EXAMINATION COMPANIES UNDERGO DURING JUDGING FOR THE MALCOLM BALDRIGE AWARDS THE COMMERCE DEPARTMENT'S ANNUAL QUALITYIMPROVEMENT HONOR FOR US COMPANIES AUSTIN LIKE SOME OTHER CITIES AND STATES IS PROMOTING ITS OWN CONTEST AS AN ECONOMICDEVELOPMENT TOOL MOST COMPETITORS ARE SMALL BUSINESSES BUT LARGE COMPANIES AND OTHER ORGANIZATIONS ARE ALSO WELCOME LAST YEAR'S WINNER WAS THE AUSTIN FIRE DEPARTMENT COMPANIES AND ORGANIZATIONS ARE GEARING UP TO ENTER THIS YEAR'S CONTEST WHOSE WINNER WILL BE ANNOUNCED IN OCTOBER LIKE THE NATIONAL CONTEST THE AUSTIN QUALITY AWARD COMPETITION IS TIMECONSUMING THE APPLICATION IS A MONSTER THING IT SCARED THE HECK OUT OF US SAYS JUAN PORTILLO PRESIDENT OF TRAMEX TRAVEL A TRAVEL AGENCY AT ACS COMMUNICATIONS A COMPUTERCABLE INSTALLATION FIRM FOUR PEOPLE SPENT A QUARTER OF THEIR TIME OVER A MONTH FILLING OUT THE 20PAGE APPLICATION ACS WON HONORABLE MENTION LAST YEAR MEASURING QUALITY CAN BE DIFFICULT FOR A SMALL SERVICE BUSINESS THAT DOESN'T MANUFACTURE SOMETHING TANGIBLE BEFORE TRAMEX TRAVEL ENTERED THE CONTEST IT SPENT A YEAR DEVELOPING INTERNAL LOGS TO SHOW PROGRESS IN SUCH ROUTINE TASKS AS SPEEDILY DELIVERING AIRLINE TICKETS TO CLIENTS IT TRACKED HOW OFTEN INCOMING TELEPHONE CALLS WERE ANSWERED WITHIN THREE RINGS IT ALSO STARTED QUALITY CIRCLES TO GIVE ITS 45 WORKERS OPPORTUNITIES TO SUGGEST IMPROVEMENTS A PANEL OF LOCAL CORPORATE EXECUTIVES REVIEW APPLICATIONS FINALISTS GET ONSITE INSPECTIONS BY THE JUDGES TRAMEX TRAVEL DIDN'T GET A SITE VISIT IN LAST YEAR'S CONTEST BUT MR PORTILLO SAYS THE BUSINESS GOT A LIST OF RECOMMENDATIONS AND A NICE PLAQUE MR PORTILLO SAYS TRAMEX ALSO GAINED COMPETITIVE LEVERAGE BY TAKING PART CUSTOMERS WANT TO DEAL WITH VENDORS THAT HAVE TQM TOTAL QUALITY MANAGEMENT PROGRAMS IN PLACE YOU CAN MARKET THIS ONE TINY COMPANY TALKS GIANT NORDSTROM INTO GIVING IT PRIME SELLING SPACE TO HAWK ITS MADETOORDER COFFEE MUGS DURING THE WEEK BEFORE VALENTINE'S DAY MUGS ON MUGS INC OF ALEXANDRIA VA SOLD ITS CUSTOMDESIGNED COFFEE MUGS ON THE MAIN FLOOR OF TWO NORDSTROM DEPARTMENT STORES IN THE WASHINGTON AREA DURING THE CHRISTMAS SEASON THE COMPANY WAS IN 11 NORDSTROM STORES AROUND THE US AND THIS PAST WEEKEND IT WAS IN NORDSTROM'S TYSONS CORNER VA STORE TO CELEBRATE THE CHAIN'S FIFTH ANNIVERSARY IN THE WASHINGTON AREA WE DON'T LET OUTSIDERS USE WHAT WE CALL OUR HARD AISLES' HIGHTRAFFIC SPACE VERY OFTEN SAYS NORDSTROM BUYER SHEREE ALLEN IT'S KIND OF A BIG DEAL SHE SIGNED UP MUGS ON MUGS AFTER ITS WARES PROVED TO BE A HIT AS AN IMPULSE GIFT ITEM IN A WASHINGTONAREA TRIAL RUN BEFORE FATHER'S DAY LAST JUNE THE COMPANY TAKES A PHOTO SUPPLIED BY A CUSTOMER OR ONE TAKEN ON THE SPOT WITH A VIDEO CAMERA AND BAKES IT PERMANENTLY ONTO A WHITE CERAMIC MUG WHILE THE CUSTOMER WAITS TODD WHITTHORNE WHO FOUNDED MUGS ON MUGS WITH PARTNER RICK MAYO A YEAR AGO SAYS WE KNEW WE HAD A PRODUCT THAT MADE SENSE IT CHARGES 13 A MUG UNDER THE ARRANGEMENT WITH NORDSTROM THE RETAILER POCKETS AN UNDISCLOSED SHARE OF SALES NORDSTROM ORIGINALLY THOUGHT THE PARTNERS WOULD BE LUCKY TO SELL 100 MUGS A DAY BUT MR MAYO SAYS SHOPPERS BOUGHT 5250 MUGS IN THE CHRISTMAS SEASON JUST AT THE TYSONS CORNER STORE HE SAYS MUGS ON MUGS' SALES EXCEEDED 500000 IN THE COMPANY'S FIRST EIGHT MONTHS AS DEFENSE CUTBACKS TAKE HOLD THE PENTAGON OPENS ITS WALLET TO KEEP A HANDFUL OF SMALL COMPANIES READY FOR WAR SURVIVAL TECHNOLOGY ROCKVILLE MD IS THE ONLY US MANUFACTURER OF NERVEGAS ANTIDOTE INJECTION KITS IN A CRASH PROGRAM THE COMPANY PRODUCED MORE THAN TWO MILLION UNITS FOR MILITARY PERSONNEL IN THE GULF WAR AMID WORRY THAT IRAQ WOULD USE CHEMICAL WEAPONS FEARING THE COMPANY MIGHT STOP MAKING THE ANTIDOTES IN PEACETIME THE DEFENSE DEPARTMENT IS PAYING SURVIVAL TECHNOLOGY 16 MILLION OVER THREE YEARS TO KEEP ITS ST LOUIS CHEMICALWARFARE ANTIDOTE PRODUCTION LINE RUNNING AT A REDUCED LEVEL THE COMPANY WILL ALSO STORE AND TRACK INVENTORY FOR THE PENTAGON IT IS THE FIRST OF SEVERAL INDUSTRIALBASE MAINTENANCE CONTRACTS TO BE AWARDED BY THE DEFENSE PERSONNEL SUPPORT CENTER AN ARM OF THE PENTAGON TO COMPANIES THAT ARE THE SOLE SUPPLIERS OF ITEMS THAT MAY BE CRUCIAL IN WARTIME SURVIVAL TECHNOLOGY HAS BEEN TRYING TO DEEMPHASIZE DEFENSE CONTRACTS CONCENTRATING ITS MANUFACTURING AND SALES ON MEDICAL PRODUCTS WITH A WIDER USE SUCH AS INJECTABLE ANTIDOTES FOR BEE STINGS AND SEVERE ALLERGY ATTACKS THE COMPANY EXPECTS DEFENSE ORDERS TO MAKE UP ABOUT 20 OF ITS SALES IN THE YEAR ENDING JULY 31 DOWN FROM 70 IN FISCAL 1987 ITS FISCAL 1992 REVENUE TOTALED 409 MILLION JAMES MILLER SURVIVAL TECHNOLOGY'S PRESIDENT SAYS THE PENTAGON CONTRACT PROVIDES STABILITY NOW THE COMPANY CAN GEAR UP TO A WARTIME PRODUCTION FOOTING IN A MATTER OF DAYS HE SAYS IF WE WERE STARTING FROM A COLD BASE IT WOULD TAKE US MONTHS DO YOUR WORKERS NEED HEPATITIS SHOTS THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ISSUES AN UPDATED SMALLBUSINESS HANDBOOK THAT INCLUDES OSHA'S NEW RULES ON PROTECTION AGAINST BLOODBORNE DISEASES SUCH AS AIDS AND HEPATITIS B ONLY 9 OF 600 SMALL RETAILERS QUERIED BY THE NATIONAL RETAIL FEDERATION IN WASHINGTON SAID THEY WOULD USE ANY SAVING FROM TAXLAW CHANGES TO HIRE NEW WORKERS MOST RESPONDENTS SAID THEY WOULD BUY NEW EQUIPMENT OR EXPAND THEIR BUSINESSES' SIZE 9303090165 930309 ENTERPRISE TALKING STRATEGY S CORPORATIONS PONDER STATUS AND CLINTON TAX PROPOSALS AS DEADLINE TO SWITCH NEARS MANY SAY BENEFITS STILL OUTWEIGH HIGHER RATES BY SCOTT R SCHMEDEL STAFF REPORTER OF THE WALL STREET JOURNAL OWNERS OF SUBCHAPTER S CORPORATIONS HAVE ONLY A FEW MORE DAYS TO THINK ABOUT SWITCHING TO REGULAR CORPORATE STATUS TO BEAT HIGHER TAXES PROPOSED BY PRESIDENT CLINTON THE VAST MAJORITY OF THE NATION'S ESTIMATED 18 MILLION S CORPORATIONS WILL OPT TO STAY PUT TAX ADVISERS EMPHASIZE BUT THE STAKES ARE BIG ENOUGH THAT MANY WILL WANT TO REVIEW THEIR OPTIONS OWNERS OF COMPANIES THAT ELECT TO USE SUBCHAPTER S OF THE TAX CODE ARE TAXED MUCH LIKE PARTNERS THEY REPORT CORPORATE PROFITS OR LOSSES ON THEIR PERSONAL TAX RETURNS AND THUS AVOID THE DOUBLE TAXATION OF CORPORATE EARNINGS AND DIVIDENDS FOR THIS ADVANTAGE THEY ACCEPT CERTAIN RESTRICTIONS INCLUDING A LIMIT OF 35 IN THE NUMBER OF STOCKHOLDERS IF PRESIDENT CLINTON HAS HIS WAY SCORPORATION OWNERS STAND TO LOSE AN ADVANTAGE THAT THEY HAVE ENJOYED SINCE THE 1986 TAX OVERHAUL TRIGGERED AN EXODUS FROM REGULAR CORPORATE STATUS A LOWER TOP PERSONAL RATE MR CLINTON WANTS TO RAISE THE TOP PERSONAL RATE TO 396 FROM 31 THE NEW RATE WOULD BE 56 PERCENTAGE POINTS ABOVE THE CURRENT CORPORATE RATE OF 34 INSTEAD OF THREE POINTS BELOW IT MONDAY IS THE DEADLINE FOR CALENDARYEAR COMPANIES TO REVOKE THEIR S STATUS RETROACTIVELY TO JAN 1 LATER REVOCATIONS WOULD TAKE EFFECT ON OR AFTER THE DATE THEY WERE MADE LIMITING ANY RESULTING BENEFIT IN 1993 ONE ENTREPRENEUR WHO HAS DECIDED TO BEAT THE MARCH 15 DEADLINE IS BOB MCMAHON CHAIRMAN AND COOWNER OF CITY MEAT & PROVISIONS CO TUCSON ARIZ THE SUPPLIER OF MEATS AND SEAFOOD TO RESTAURANTS AND HOTELS ELECTED S STATUS ABOUT FIVE YEARS AGO MR MCMAHON'S DECISION TO REVERSE COURSE IS DRIVEN BY A CONCERN THAT THE CLINTON PROPOSAL WOULD EXTRACT MORE OF THE COMPANY INCOME THAT HE IS PLOWING BACK INTO HIS FASTGROWING BUSINESS WE DID 70 MILLION IN SALES IN 1992 AFTER 56 MILLION IN 1991 AND WE'LL DO ABOUT 80 MILLION IN 1993 MR MCMAHON SAYS WE NEED ALL THE CAPITAL WE CAN EARN TO FINANCE THAT GROWTH BUT HE PROBABLY IS AMONG THE MINORITY TAX ADVISERS SAY THAT MOST SCORPORATION OWNERS SHOULD RETAIN S STATUS FOR MANY LONGTERM REASONS THAT OUTWEIGH THE IMMEDIATE EFFECTS OF TAXRATE CHANGES I THINK IT WILL BE A VERY RARE BIRD THAT FINDS IT BENEFICIAL TO REVOKE AN S ELECTION SAYS MATTHEW C KESSLER A TAX PARTNER IN CHICAGO WITH THE ACCOUNTING FIRM GRANT THORNTON THOMAS OCHSENSCHLAGER A GRANT THORNTON PARTNER IN WASHINGTON SAYS AN S CORPORATION SHOULD FULFILL AT LEAST THREE CONDITIONS BEFORE CONSIDERING A CHANGE ITS SHAREHOLDERS WOULD END UP PAYING THE 396 PERSONAL TAX RATE ON SCORPORATION INCOME IT PLANS TO REINVEST MOST OF ITS EARNINGS IN GROWTH AND IT LACKS APPRECIATED ASSETS INCLUDING THE SOCALLED GOODWILL VALUE OF THE BUSINESS THAT ARE SUBJECT TO DOUBLE TAXATION WHEN REGULAR CORPORATIONS ARE SOLD THESE FACTORS ALONG WITH THE OWNER'S DETERMINATION NOT TO SELL THE BUSINESS OR TRANSFER ITS STOCK TO HEIRS WHILE STILL ALIVE MAY WARRANT REVOCATION BY BUSINESSES IN NEED OF SAVING CASH SAYS SAMUEL STARR A PARTNER IN THE WASHINGTON OFFICE OF THE ACCOUNTING FIRM COOPERS & LYBRAND MY CONCERN HE ADDS IS THAT YOU NEVER KNOW WHEN YOU WILL GET AN OFFER FOR THE BUSINESS THAT IS TOO GOOD TO REFUSE MR MCMAHON OF CITY MEAT A COOPERS & LYBRAND CLIENT HAS CHECKED THE LIST AND MADE HIS DECISION THE COMPANY NEEDS THE CAPITAL HE ISN'T WORRIED THAT THE INTERNAL REVENUE SERVICE WILL CHALLENGE THE COMPANY FOR EXCESSIVE ACCUMULATION OF EARNINGS OR FOR PAYING UNREASONABLE COMPENSATION TO OWNERS POSSIBLE PITFALLS FOR REGULAR CORPORATIONS AND AS FOR THE UNLIKELY CHANCES OF SELLING THE COMPANY HE SAYS I'M 45 IT'S MY HOBBY OTHER S CORPORATIONS ARE MORE CAUTIOUS LESLIE MINKUS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NEWLY WEDS FOODS A CHICAGO MAKER OF FOOD BATTERS AND COATINGS SAYS IT WILL WAIT TO SEE WHAT HAPPENS IF THERE IS A SUBSTANTIAL RATE CHANGE AND WE SEE THAT IT WOULD HAVE A STRONG UNFAVORABLE EFFECT ON THE TAXRELATED REASONS WHY WE ELECTED S STATUS THEN A CHANGE TO REGULAR STATUS WOULD BE CONSIDERED MR MINKUS SAYS THE ADMINISTRATION PROPOSES TO ADD FOR 1993 A PERSONAL BRACKET TAXED AT 36 PLUS A 10 SURCHARGE FOR A TOTAL OF 396 ON TAXABLE INCOME EXCEEDING 250000 EXCLUDING CAPITAL GAINS FOR TAXABLE CORPORATE INCOME ABOVE 10 MILLION IT WANTS TO ADD A 36 RATE RETAINING THE 34 RATE ON LOWER INCOME AS MR MCMAHON POINTS OUT HE WOULDN'T BE A 396 TAXPAYER BASED ON SALARY ALONE BUT HE WOULD BE IF HE ADDED HIS SHARE OF SCORPORATION EARNINGS THAT WERE REINVESTED IN THE BUSINESS YET TAX EXPERTS SAY THERE ARE COMPELLING REASONS FOR MOST TO RETAIN S STATUS DESPITE THE POTENTIAL INCOMETAX BITE THE MAIN ONE IS THAT AN OWNER'S COST BASIS IN SCOMPANY STOCK THE DOLLAR VALUE OF WHAT HAS BEEN INVESTED RISES AS THE OWNER PAYS PERSONAL TAXES ON THE COMPANY'S UNDISTRIBUTED INCOME THAT MEANS THE TAXABLE GAIN ON A SALE OF STOCK IS FAR LESS THAN IT WOULD BE IF THE OWNER SOLD REGULARCORPORATION STOCK FOR THE SAME PRICE THERE ARE SEVERAL MORE ADVANTAGES IN RETAINING S STATUS SAYS SHELDON M BONOVITZ A PARTNER IN THE PHILADELPHIA LAW FIRM DUANE MORRIS & HECKSCHER AN S CORPORATION CAN SELL ASSETS WITHOUT PAYING DOUBLE TAXES ON THE GAIN IT MAY GET SAVINGS ON STATE AS WELL AS FEDERAL INCOME TAXES IT ISN'T SUBJECT TO THE TAX ON UNREASONABLY HIGH ACCUMULATIONS OF EARNINGS IT ISN'T LIKELY TO BE CHALLENGED BY THE IRS FOR PAYING AND DEDUCTING UNREASONABLY HIGH SALARIES TO OWNERS WHICH SHOULD BE TREATED AS NONDEDUCTIBLE DIVIDENDS AND ONCE IT REVOKES ITS S ELECTION IT MUST WAIT AT LEAST FIVE YEARS TO READOPT THAT STATUS 9303090164 930309 MONDAY'S MARKETS SLIDING RATES LIFT STOCKS TO A RECORD INDUSTRIALS SOAR 6484 AMID GROWING SIGNS OF STRONG RECOVERY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL DECLINING INTEREST RATES AND IMPROVING ECONOMIC PROSPECTS IGNITED A ROBUST STOCK MARKET RALLY THAT CARRIED THE MAJOR INDEXES UP 2 TO RECORD LEVELS BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SOARED 6484 POINTS TO A RECORD 346942 STANDARD & POOR'S 500STOCK INDEX SURGED 860 TO A RECORD 45471 THE NASDAQ COMPOSITE INDEX GAINED 586 TO 68723 STOCK MARKET INVESTORS ARE GAINING CONFIDENCE ABOUT ECONOMIC GROWTH AND FATTER CORPORATE PROFITS A STRONG JOBS REPORT ON FRIDAY SUGGESTED THE ECONOMIC RECOVERY MAY BE MORE VIGOROUS THAN EXPECTED ALSO ON FRIDAY THE GERMAN CENTRAL BANK UNEXPECTEDLY CUT THE INTEREST RATE ON A KEY OPENMARKET FINANCING INSTRUMENT RAISING HOPES FOR FURTHER GERMAN RATE CUTS THE US RALLY FOLLOWED A 5 SURGE IN JAPAN'S STOCK MARKET A HALFDAY EARLIER INVESTORS THERE ANTICIPATED FURTHER STRONG SUPPORT OF THE MARKET BY GOVERNMENTCONTROLLED INSTITUTIONS THE DOW JONES WORLD STOCK INDEX GAINED 1 TO 9683 STRENGTH IN THE US STOCK MARKET IS UNDERPINNED BY THE CONTINUING US BOND MARKET RALLY ANALYSTS POINT OUT YIELDS ON THE TREASURY'S BENCHMARK 30YEAR BOND ARE SINKING TO EVERLOWER RECORDS YESTERDAY THE YIELD ON THE 30YEAR TREASURY BOND FELL TO 672 FROM 674 FRIDAY RICHARD HOFFMAN CHIEF INVESTMENT STRATEGIST AT COWEN & CO SAID DECLINING BOND YIELDS ADD TO OPTIMISM ABOUT THE STRENGTH OF THE ECONOMY LOWER RATES REDUCE BORROWING COSTS FOR BUSINESSES AND INDIVIDUALS BOOSTING CORPORATE EXPANSION AND CONSUMER DEMAND MR HOFFMAN ESTIMATES THAT THE SLIDE IN RATES TRANSLATES INTO AN ECONOMIC STIMULUS OF 100 BILLION THAT'S GOOD FOR PROFITS IN THE SHORT RUN MR HOFFMAN SAID THE STOCK MARKET IS REFLECTING THAT WAYNE NORDBERG A PARTNER AT LORD ABBETT A MUTUAL FUND COMPANY WITH 15 BILLION IN ASSETS SAID HE EXPECTS LONGTERM BOND YIELDS TO FALL EVEN FURTHER HE NOW FORESEES YIELDS OF 625 TO 725 DOWN FROM THE RANGE OF 7 TO 8 HIS FIRM FORECAST FIVE MONTHS AGO HE NOTES THAT INVESTORS CONTINUE TO MOVE OUT OF LOWYIELDING CASH INSTRUMENTS AND INTO STOCKS AND BONDS IT HAS TAKEN A WHILE FOR THE PUBLIC TO MAKE UP ITS MIND THAT HIGH CD YIELDS AREN'T COMING BACK MR NORDBERG SAID AND IT'S FORCING MOUNTAINS OF MONEY INTO OTHER AREAS OF INVESTMENT UNTIL ALL THE MONEY IS REINVESTED IT'S HARD TO TELL HOW FAR THIS MANIA WILL GO MR NORDBERG SAID HE SEES NO WARNING SIGNALS OF RISING INFLATION THAT MIGHT COOL THE STOCK AND BOND MARKET RALLIES HE SAID HE EXPECTS US BORROWING TO REMAIN SUBDUED AND GLOBAL ECONOMIC GROWTH TO BE WEAK HE FORECASTS THE S&P 500 WILL CLIMB TO 520 DURING THE NEXT 12 MONTHS WHICH WOULD BE UP MORE THAN 14 FROM YESTERDAY'S RECORD ROBERT ROBBINS MARKET STRATEGIST AT ROBINSONHUMPHREY CO IN ATLANTA ALSO THINKS THE MAJOR INDEXES WILL CONTINUE PUSHING HIGHER BUT HE IS GRADUALLY RAISING CASH WITH EACH ADVANCE HE SAID THAT FOR EVERY 25POINT GAIN IN THE DOW JONES INDUSTRIALS HE IS PUTTING ANOTHER 1 OF HIS PORTFOLIO IN CASH HE HAS HIS AGGRESSIVE ACCOUNTS AT 27 CASH NOW HE SAYS THNGS ARE LOOKING SO GOOD THAT TO ME IT'S UNSUSTAINABLY GOOD MR ROBBINS SAID I WANT TO BE MORE AND MORE DEFENSIVE AS WE GO UP IN MAJOR MARKET ACTION STOCK PRICES JUMPED VOLUME TOTALED 274560000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1497 ISSUES ROSE AND 506 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE ABOUT 1/4 POINT OR 250 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16635 MARKS AND 11675 YEN COMPARED WITH 16684 MARKS AND 11763 YEN FRIDAY 9303090163 930309 WHO'S NEWS HEXCEL CORP HEXCEL CORP PLEASANTON CALIF DONALD J O'MARA WAS NAMED PRESIDENT OF THIS MAKER OF AEROSPACE MATERIALS SUCCEEDING ROBERT L WITT WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR O'MARA WHO WAS VICE PRESIDENT AND GENERAL MANAGER OF HEXCEL'S HONEYCOMB UNIT WAS ALSO NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER NO REPLACEMENT HAS BEEN NAMED FOR MR O'MARA HEXCEL SAID 9303090162 930309 MARKETING & MEDIA HOPING TO CLEAN UP P&G UNVEILS A SOAP TO BRIGHTEN COTTONS ENZYME ELIMINATES FUZZINESS WAR AGAINST DINGY SOCKS WINS SUPPORT OF INDUSTRY BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO WILL INTRODUCE TODAY A NEW ENZYME TECHNOLOGY IT CLAIMS ELIMINATES THE FUZZINESS THAT APPEARS ON COTTON FABRICS AFTER WASHING THE CINCINNATI SOAP MAKER HAS ADDED THE ENZYME TO ITS CHEER BRAND DETERGENT WHICH WILL BE KNOWN AS NEW CHEER WITH ADVANCED COLOR GUARD THE PRODUCT WHICH P&G IS NOW SHIPPING WILL BE AVAILABLE NATIONWIDE BY LATE SPRING THE COMPANY HAS TEAMED WITH COTTON INC THE RESEARCH AND MARKETING ARM OF THE AMERICAN COTTON GROWERS OF AMERICA TO HELP MARKET THE NEW DETERGENT P&G HAS LICENSED THE COTTONLABEL TRADEMARK FROM COTTON INC FOR FREE AND WILL DISPLAY THE GROUP'S COTTONPLANT LOGO ON ITS DETERGENT BOX P&G SAID CHEER'S ADVANCED VERSION WITH THE ENZYME NAMED CAREZYME REPLACES CHEER WITH COLOR GUARD THE SOAP COMPANY RECENTLY TESTMARKETED THE NEW DETERGENT IN SAN ANTONIO AND HAS ALREADY ROLLED IT OUT IN EUROPE AND JAPAN IN ITS ARIEL COLOR AND SUPER CHEER RESPECTIVELY WHEN COTTON IS WASHED AND TUMBLEDRIED THE SURFACE ABRADES CAUSING A FUZZINESS THAT MAKES THE FABRIC LOOK FADED AND DINGY P&G'S ENZYME ELIMINATES THE GRAYISH FUZZ HELPING THE COTTON MATERIAL LOOK MORE VIBRANT AFTER WASHING SAID J NICHOLAS HAHN COTTON INC'S PRESIDENT THE RESULTS ARE PRETTY DRAMATIC HE SAID THE COMPANY WILL DEMONSTRATE THE RESULTS AT A MANHATTAN NEWS CONFERENCE THIS MORNING P&G AND THE COTTON INDUSTRY HAVE BEEN DISCUSSING A VENTURE SINCE EARLY LAST YEAR THIS MARKS THE FIRST TIME COTTON INC HAS LICENSED THE USE OF ITS TRADEMARK ON A NONTEXTILE PRODUCT THE COTTON INDUSTRY STANDS TO BENEFIT FROM THE MASSIVE EXPOSURE OF THE CAMPAIGN SAID MR HAHN IT ADDS A LOT OF VALUE FOR COLOR COTTON TEXTILE FABRICS HE SAID COTTON IS USED IN 56 OF APPAREL AND HOME FURNISHINGS FABRICS P&G DECLINED TO SAY WHETHER IT WILL ADD THE ENZYME TO ITS OTHER DETERGENTS INCLUDING ITS BESTSELLING DETERGENT TIDE AS WELL AS BOLD DASH DREFT ERA GAIN AND OXYDOL WITH THE PRODUCT INTRODUCTION P&G HAS MOVED ITS CHEER DETERGENT TO ITS EVERYDAY LOW PRICING WHICH GIVES CONSUMERS MORE CONSISTENT PRICES ON P&G PRODUCTS WHILE ELIMINATING STEEP DISCOUNTS P&G SAID CHEER'S LIST PRICE WILL BE REDUCED ABOUT 9 9303090161 930309 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES JAMES F GUTHRIE WAS ELECTED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND EFREM ZIMBALIST III WAS ELECTED VICE PRESIDENT STRATEGIC DEVELOPMENT MR GUTHRIE 48 YEARS OLD PREVIOUSLY WAS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE TIMES MIRROR CABLE TELEVISION OPERATING UNIT MR ZIMBALIST 45 WAS ASSISTANT TO THE GROUP VICE PRESIDENT NEWSPAPERS TIMES MIRROR IS ENGAGED IN NEWSPAPER PUBLISHING BROADCAST AND CABLE TELEVISION AND BOOK MAGAZINE AND OTHER PUBLISHING 9303090159 930309 INTERNATIONAL GREECE'S PRIME MINISTER DEFENDS STAND ON ISSUES DISMISSES BROAD CRITICISM BY FREDERICK KEMPE STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS GREECE AT THE AGE OF 74 GREEK PRIME MINISTER CONSTANTINE MITSOTAKIS CONSIDERS HIMSELF OLD ENOUGH TO STOP WORRYING ABOUT HIS CRITICS SO AS DOMESTIC AND FOREIGN ADVERSARIES CIRCLE HIM LIKE VULTURES HE IS PUSHING AHEAD WITH HIS CONTROVERSIAL POLICIES ABROAD OTHER EUROPEAN COMMUNITY STATESMEN ACCUSE HIM OF SYMPATHIZING WITH SLOBODAN MILOSEVIC THE SERBIAN LEADER WHOSE FORCES ARE BRUTALIZING THE MUSLIMS OF THE FORMER YUGOSLAV REPUBLIC OF BOSNIAHERZEGOVINA AT HOME HARDLINERS IN HIS OWN NEW DEMOCRACY PARTY THREATEN TO UNSEAT HIM FOR BEING TOO SOFT ON THE MACEDONIA QUESTION THEY ARE OUTRAGED AT HIS ACCEPTANCE OF INTERNATIONAL ARBITRATION ON THE FORMER YUGOSLAV REPUBLIC'S USE OF A NAME THAT GREEKS FEAR COULD TURN INTO A CLAIM ON THEIR TERRITORY MR MITSOTAKIS HAS ONLY A ONEVOTE MAJORITY IN PARLIAMENT MAKING A NOCONFIDENCE VOTE A CONSTANT THREAT THOUGH HIS TIGHTMONEY POLICIES HAVE WON HIM RESPECT IN EC CIRCLES THEY HAVE SLOWED THE GREEK ECONOMY ANGERED HARDPRESSED CONSUMERS AND HEIGHTENED UNION OPPOSITION UNLESS THE ECONOMY IMPROVES THIS YEAR AS HE PROMISES SOCIALISTS MAY REGAIN POWER IN 1994 ELECTIONS HIS ECONOMIC POLICIES HE SAYS HAVE BEEN NECESSARY AND EFFECTIVE AND HAVE REGAIN STANDING FOR GREECE WITHIN THE EC AS FOR THE MACEDONIA QUESTION MR MITSOTAKIS HASN'T CHANGED HIS MIND THAT THE NAME IS A NATIONAL DANGER YET HE KNEW THE WORLD COMMUNITY NEEDED TO BE SHOWN THAT IT WAS THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA WHOSE LEADER HAS REJECTED INTERNATIONAL ARBITRATION AND NOT ATHENS THAT WAS INTRANSIGENT THAT THESE STANDS HAVEN'T MADE HIM POPULAR DOESN'T SEEM TO MATTER THE ENERGETIC ALERT SEPTUAGENARIAN DECLARES THAT HE HAS GROWN TOO OLD TO COMPROMISE HE BELIEVES THAT HIS ECONOMIC POLICIES MAY HELP TO RESCUE EC UNITY AND THAT HIS CAPABILITY TO TALK WITH MR MILOSEVIC MAY HELP TO BRING PEACE TO THE REGION INDEED WHATEVER ONE MAY THINK OF THE GREEK LEADER HE HAS CLEARLY MADE HIS COUNTRY A FACTOR IN THE BALKAN POLITICAL EQUATION AND HAS RESTORED A MEASURE OF GREEK ECONOMIC CREDIBILITY LOST DURING EIGHT YEARS OF SOCIALIST RULE ASKED HOW HE CAN PROCEED WITH SUCH CONFIDENCE EVEN THOUGH HE COULD BE UNSEATED ANY DAY HE ONLY LAUGHS MANY ENEMIES IN MY OWN PARTY WOULD LIKE TO BRING ME DOWN BUT DESPITE THAT I RULE AS IF I WERE ALLPOWERFUL HE SAYS AND I'M REALLY HAVING FUN I TELL THOSE WHO WANT TO OVERTHROW THE GOVERNMENT TO GO AHEAD AND DO IT NO ONE WILL TOPPLE ME BECAUSE NO ONE DARES AND WHEN I BELIEVE I AM IN THE RIGHT I DON'T EVER RETREAT THAT EXPLAINS HIS EMPHATIC DISSENT AGAINST INTERNATIONAL MOVES TO ISOLATE MR MILOSEVIC MR MITSOTAKIS SHRUGS OFF CHARGES THAT THE PEACE PLAN PUT FORTH BY MR VANCE AND LORD OWEN WOULD ONLY CONFIRM SERBIAN GAINS AND HE ARGUES THAT THE CLINTON ADMINISTRATION'S DELAYS IN BACKING THE PLAN ONLY HEIGHTEN THE VIOLENCE BY GIVING BOSNIAN MUSLIMS THE FALSE HOPE OF A WESTERN MILITARY RESCUE AND HE WARNS THAT THE WORLD IS ONLY INCREASING THE SUFFERING BY AIMING ITS WRATH AT SERBIA I HAVE ACCEPTED STRONGLY WORDED EC COMMUNIQUES AGAINST SERBIA OUT OF LOYALTY TO THE EUROPEAN COMMUNITY EVEN THOUGH I DIDN'T AGREE WITH THEM MR MITSOTAKIS SAYS I TOLD MY COLLEAGUES THAT WHAT WE WERE DOING WAS NONSENSE MAKING POLICIES TOTALLY AGAINST SERBIA HAS ONLY STRENGTHENED AND REINFORCED MILOSEVIC BECAUSE NOW HE IS A NATIONAL HERO WHAT IRKS EC COLLEAGUES MOST IS HIS CONTINUED SYMPATHY FOR THE SERBS WE ARE TRADITIONAL FRIENDS MR MITSOTAKIS EXPLAINS WE FOUGHT TWO WORLD WARS ALONG WITH THEM WE ARE BOTH ORTHODOX CHRISTIANS I DON'T SAY THAT THE SERBS DIDN'T DO TERRIBLE THINGS THEY DID BUT THEY AREN'T THE ONLY ONES STILL MR MITSOTAKIS'S ROOM FOR MANEUVERING AT HOME IS LIMITED BY HIS LACK OF CHARISMA AND BY HIS UNPOPULARITY HE MADE EVEN MORE ENEMIES BY FORCING THROUGH HIS TOUGH ECONOMIC PROGRAM IN THE FACE OF HEATED OPPOSITION LAST SUMMER THE MEASURES INCLUDED HIGHER TAXES ON ENERGY AND BANK INTEREST REDUCED PENSION BENEFITS AND PRIVATIZATION OF PUBLIC TRANSPORT MR MITSOTAKIS SAYS HIS STRATEGY WAS TO TIME THE CHANGES FOR THE SUMMER MONTHS WHEN MANY GREEKS ARE AWAY AND PARLIAMENT IS CLOSED AND TO FORCE ALL THE MOST DIFFICULT POLICIES THROUGH AT ONE TIME EVERYONE IN MY PARTY HAD FEAR AND NO ONE DARED DO IT HE RECALLS THEY SAID TO ME YOU CAN'T DO EVERYTHING AT THE SAME TIME I SAID JUST THE OPPOSITE I'M GOING TO DO EVERYTHING AT ONCE AND I DID TO BE SURE MR MITSOTAKIS HAD LITTLE CHOICE BUT TO MAKE THE ATTEMPT WITHOUT IMPROVING GREECE'S STOCK WITH THE REST OF THE EC GREEK OBJECTIONS TO RECOGNITION OF MACEDONIA WOULD HAVE BEEN DISREGARDED HIS ADMINISTRATION REDUCED INFLATION TO 14 FROM 24 BY THE END OF 1992 AND IT HAS PROMISED TO BRING THE RATE BELOW 10 BY THE END OF 1993 GROWTH IN UNIT LABOR COSTS HAS BEEN HALVED TO AROUND 10 AND GOVERNMENT DEBT AS A SHARE OF NATIONAL ECONOMIC OUTPUT IS SHRINKING AND THE DEFICIT IS CONTRACTING JENNY PARIS CONTRIBUTED TO THIS ARTICLE 9303090158 930309 CORRECTIONS & AMPLIFICATIONS JEANETTE GRASSELLI BROWN WHO WAS RECENTLY NAMED A DIRECTOR OF USX CORP IS A VISITING PROFESSOR AT OHIO UNIVERSITY IN THURSDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT DR BROWN IS A VISITING PROFESSOR AT OHIO STATE UNIVERSITY 9303090156 930309 TECHNOLOGY & HEALTH IN THE LAB IN SEARCH OF PAPER THAT SPIES CAN'T COPY BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS OHIO DAVE ROBBINS AND BOB SCHWERZEL ARE TRYING TO FIGURE A WAY TO OUTSMART SPIES THEIR WEAPON A SEEMINGLY INNOCUOUS PIECE OF GRAY PAPER WITH A SHINY COATING TYPED WITH BLACK BLUE AND RED LETTERS TRY TO PHOTOCOPY IT AND THE PAPER ALMOST ALWAYS COMES OUT BLACK THE INVENTORS HOPE TO FIX IT SO THIS WILL HAPPEN ALL THE TIME THAT WAY THE COPYPROOF PAPER COULD PROTECT PRECIOUS INDUSTRIAL SECRETS FROM CORPORATE SPIES ALAS THE ULTIMATE TEST IS DOWN THE HALL AND UNDER A PINK BOX OF FACIAL TISSUE A DESKTOP COMPUTER HOOKED UP TO A SCANNER MR ROBBINS DEFIES THE MAN AT THE KEYBOARD RYAN C RICE TO SCAN THE PAPER AND REPRODUCE IT ON HIS SCREEN AT FIRST MR RICE CAN ONLY SUMMON A BLACK BLOB HE PECKS AT THE BRIGHTNESS CONTROLS AND SUDDENLY HE CAN SEE THE OUTLINE OF LETTERS HE TAUNTS THE INVENTORS NOW WHAT DID YOU SAY I CAN'T DO HE CHANGES THE CONTRAST AND ENLARGES A SECTION HE CAN CLEARLY READ THE WORDS FOILED AGAIN EVERY TIME MESSRS ROBBINS AND SCHWERZEL SCIENTISTS AT THE NONPROFIT RESEARCH FIRM BATTELLE IMPROVE THEIR COPYPROOF PAPER A NEW COPIER FAX OR SCANNER HITS THE MARKET REPRODUCING FROM EVEN THE MOST ADVANCED COPIES WE'RE AIMING AT A MOVING TARGET MR SCHWERZEL SAYS EVEN IF THEY THWART MR RICE'S SCANNER THERE'S MORE WORK TO DO MR RICE'S SCANNER IS ESSENTIALLY LOWTECHREADING ONLY 300 DOTS PER INCH OF LINE COMPARED TO SCANNERS NOW COMMONLY AVAILABLE THAT ARE FOUR TIMES AS POWERFUL EVEN MORE POWERFUL SCANNERS ARE ON THE WAY OF COURSE NO TECHNOLOGY CAN PREVENT SOMEONE FROM SIMPLY STEALING A DOCUMENT BUT AT LEAST THEN THE OWNER WILL KNOW IT'S BEEN TAKEN MESSRS ROBBINS AND SCHWERZEL HOPE COPYPROOF PAPER WILL DETER CORPORATE SPIES FROM STEALING INFORMATION COPYING IT OR FAXING IT ACROSS THE WORLD IN MINUTES AND THEN RETURNING THE ORIGINAL TO THE UNSUSPECTING OWNER TOY COMPANIES FOR INSTANCE HAVE COMPLAINED TO BATTELLE THAT SHORTLY AFTER THEY SHOPPED IDEAS FOR NEW PRODUCTS AROUND TO POTENTIAL CLIENTS KNOCKOFF VERSIONS POPPED UP IN THE FAR EAST BEATING THE ORIGINALS TO MARKET THEY FIGURED SOMEONE WAS SNEAKING OUT OF PRESENTATION MEETINGS TO COPY DOCUMENTS THAT WEREN'T SUPPOSED TO LEAVE THE ROOM COPYPROOF PAPER COULD ALSO FORCE THOUSANDS OF PEOPLE TO PAY ROYALTIES FOR INFORMATION THAT'S NOW ESSENTIALLY FREE FOR INSTANCE A BOOK PRINTED ON IT COULDN'T BE REPRODUCED FOR COLLEGE READERS AND SHEET MUSIC COULDN'T BE COPIED FOR THE CHURCH CHOIR OR THE TECHNOLOGY COULD BE USED TO DETER COUNTERFEITERS LIKE A WATERMARK A SYMBOL PRINTED ON COPYPROOF PAPER WOULD BE CLEAR ON ORIGINALS BUT WOULD DISAPPEAR OR BLUR IN COPIES COPIERS WORK BY FLASHING LIGHT AT THE ORIGINAL AND WAITING FOR IT TO BOUNCE BACK TO THE PHOTORECEPTOR WHICH BECOMES ELECTRICALLY CHARGED IN THE PATTERN OF THE IMAGE THE PHOTORECEPTOR SHAPED LIKE A DRUM ROTATES PAST A ROLLER CARRYING TONER PARTICLES THE TONER STICKS TO THE CHARGED PARTS OF THE DRUM WHICH THEN TRANSMITS THE TONER TO A BLANK PIECE OF PAPER IF THE LIGHT DOESN'T BOUNCE BACK TO THE PHOTORECEPTOR THE COPIER CAN'T COPY THE ORIGINAL REALIZING THIS SOME COMPANIES HAVE DEVELOPED VERSIONS OF COPYPROOF PAPER THAT ABSORB LIGHT OR BOUNCES IT BACK AT ODD ANGLES BUT MR ROBBINS SAYS THEY DON'T WORK WELL HE PICKS UP A BURGUNDYBROWN PAPER DESIGNED TO ABSORB LIGHT IDEALLY THE IMAGE SHOULD COME OUT BLACK BUT MR ROBBINS FIDDLES WITH THE CONTRAST CONTROLS AND PRODUCES A PERFECTLY LEGIBLE COPY HE HAS A DIFFERENT STRATEGY FOR ANOTHER COPYPROOF VERSION A SHINY GOLD PAPER WHICH IS DESIGNED TO SCATTER LIGHT THE PAPER SEEMS TO WORK WELL BECAUSE IT PRODUCES ONLY BLACK COPIES BUT THEN MR ROBBINS WHIPS OUT A SHEET OF FACIAL TISSUE STRETCHES IT OVER THE FRONT OF THE DOCUMENT AND THEN PUSHES THE PRINT BUTTON ZAP THE LIGHT STRIKES BUT INSTEAD OF SCATTERING INTO AN UNREADABLE IMAGE IT'S DIFFUSED BY THE TISSUE THE COPY IS GRAINY BUT MOSTLY READABLE THIS ISN'T HIGH TECHNOLOGY HERE MR ROBBINS SAYS TOSSING THE TISSUE INTO A WASTE BASKET TO PROVE HOW MUCH BETTER HIS OWN COPYPROOF PAPER IS HE TRIES THE SAME EXPERIMENT ON HIS OWN PAPER ALL THE COPIER SEES IS TISSUE A BUNCH OF GRAINS THAT LOOK LIKE AN AERIAL SHOT OF THE SAHARA THE SCIENCE OF PHOTOCHEMISTRY IS WHERE MESSRS ROBBINS AND SCHWERZEL FIRST CONCENTRATED THEIR EFFORTS WHEN THEY BEGAN THIS ANTIESPIONAGE PROJECT IN 1991 THEY WANTED TO DEVELOP INK THAT DISAPPEARED A LA JAMES BOND WHEN EXPOSED TO LIGHT IN THEORY THE INK AND VALUABLE CORPORATE SECRETS WOULD VANISH WHEN HIT BY THE LIGHT OF A COPY OR FAX MACHINE MR SCHWERZEL A PHOTOCHEMIST CONCENTRATED ON INK THAT REACTS TO LIGHT HUMANS CAN'T SEE SUCH AS ULTRAVIOLET RAYS HOWEVER COPIERS DON'T USE MUCH ULTRAVIOLET LIGHT AND EVEN THIS GETS FILTERED BY THE GLASS PLATE THAT HOLDS THE DOCUMENT COPIERS USE LIGHT OF OTHER WAVELENGTHS SUCH AS YELLOWS GREENS AND REDS THE PROBLEM IS THAT FLUORESCENT LAMPS LIGHT BULBS AND SUNLIGHT ALSO EMIT THOSE COLORS AS A RESULT CREATING AN INK THAT WOULD DISAPPEAR UNDER COPIER LIGHT WOULD ALSO BLEACH ON A BOARDROOM TABLE THE TEAM'S LATEST CONCOCTION THE CHARCOAL GRAY PAPER WITH A SHINY SURFACE SEEMS TO WORK FAIRLY WELL ON COPIERS SEVERAL BRANDS OF COPIERS IN DIFFERENT OFFICES AT BATTELLE COULDN'T REPRODUCE THE DOCUMENT AT ALL NO MATTER WHAT THE CONTRAST SETTINGS A COLOR COPIER MADE BY CANON USA MANAGED TO LEGIBLY REPRODUCE BLACK AND RED WORDS ON THE DOCUMENT THE BLUE WORDS WERE BARELY READABLE AGAINST THE DARK BACKGROUND THE BIGGEST DISAPPOINTMENT WAS WITH A FAX MACHINE WHEN MR ROBBINS FED THE COPYPROOF PAPER INTO ONE THE FIRST COPY CAME OUT BLACK BUT WHEN HE TURNED THE PAPER SIDEWAYS AND FED IT THROUGH AGAIN THE ENTIRE TEXT WAS LEGIBLE IF A BIT SPLOTCHY WHY HE'D HAVE TO EXAMINE THE INNARDS OF THE FAX MACHINE TO FIND OUT 9303090154 930309 CAROLINA POWER & LIGHT BONDS RALEIGH NC CAROLINA POWER & LIGHT CO SAID IT PLANS TO REDEEM IN FULL 100 MILLION IN FIRST MORTGAGE BONDS 8875 SERIES DUE MARCH 1 2016 THE COMPANY SAID IT WILL PAY HOLDERS 10577 OF PRINCIPAL AMOUNT OF THE BONDS PLUS ACCRUED AND UNPAID INTEREST TO APRIL 16 THE REDEMPTION DATE 9303090153 930309 GUY F ATKINSON CONSTRUCTION SOUTH SAN FRANCISCO CALIF GUY F ATKINSON CO SAID IT WAS CHOSEN TO LEAD A CONSTRUCTION TEAM BUILDING A 18 BILLION PUMPED STORAGE HYDROELECTRIC GENERATING PROJECT IN NEW JERSEY ATKINSON SAID THE MOUNT HOPE WATERPOWER PROJECT IN ROCKAWAY NJ INCLUDES AN UPPER RESERVOIR A 2800FOOT VERTICAL INTAKE SHAFT A POWERHOUSE AND A SECOND UNDERGROUND RESERVOIR CONSTRUCTION COULD BEGIN IN 1995 THE COMPANY SAID ATKINSON WILL BE THE PROJECT'S LEAD CONTRACTOR AND WILL FORM A JOINT TEAM OF US CONSTRUCTION COMPANIES THAT WILL BUILD THE PROJECT 9303090152 930309 IF THE PLAINTIFF SHOULD TRIUMPH REVENGE WOULD BE SWEET INDEED BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN THE BRILLIANT MINDS WORKING ON THE BABY RUTH CANDYBAR ACCOUNT READ THAT PRESIDENT CLINTON CONFESSED TO A WEAKNESS FOR THEIR BRAND THEY SAW AN OPPORTUNITY TOO RICH TO RESIST BUT THEY MAY HAVE BITTEN OFF MORE THAN THEY CAN CHEW WHEN THEY TRUMPETED THE NEWS OF MR CLINTON'S CONFECTIONARY INCLINATIONS IN AN AD IN PEOPLE MAGAZINE THE AD SHOWED THE BAR AND NOTED WHEN THE NEW PRESIDENT SAID HIS FAVORITE CANDY BAR IS BABY RUTH NOBODY SNICKERED GET IT THAT NOBODY SNICKERED TURNED OUT TO BE ALL TOO TRUE AT MARS INC THE MCLEAN VA COMPANY THAT MAKES SNICKERS CANDY BARS FOLKS THERE DIDN'T SEE THE HUMOR IN THE WORDPLAY AND IN A CASE OF LEGAL SOUR GRAPES MARS HAS FILED A LAWSUIT IN FEDERAL COURT IN MANHATTAN IT LODGES RATHER UNFUNNY CHARGES OF FALSE ADVERTISING AND TRADEMARK INFRINGEMENT AGAINST BABY RUTH MAKER NESTLE FOODS CO A UNIT OF NESTLE SA AND AD AGENCY JORDAN MCGRATH CASE & TAYLOR NEW YORK NESTLE AND MARS DECLINED TO COMMENT ON THE SUIT WHICH ALLEGES THAT NESTLE UNFAIRLY BENEFITED FROM ASSOCIATING ITS BABY RUTH WITH SNICKERS SALES OF SNICKERS EXCEED 400 MILLION AND ITS AD BUDGET IS MORE THAN 40 MILLION MARS REVEALS IN ITS SUIT WHILE BABY RUTH'S SALES ARE LESS THAN 100 MILLION MARS IS SEEKING AN INJUNCTION TO KEEP NESTLE FROM RUNNING THE AD AGAIN AND IS ALSO ASKING FOR UNSPECIFIED DAMAGES MARS ALSO TAKES UMBRAGE AT THE IMPLIED PRESIDENTIAL SLIGHT IN THE AD WHICH MARS SAYS COMMUNICATES TO THE CONSUMER THAT PRESIDENT CLINTON SELECTED AND CONSUMES BABY RUTH OVER SNICKERS WHEN IN FACT THERE IS NO EVIDENCE THAT THIS IS THE CASE THE EVIDENCE NEWSWEEK MAGAZINE SAID SO IN AN ISSUE DATED JAN 25 WHITE HOUSE OFFICIALS ASKED TO CONFIRM THE NESTLE BOAST WERE STILL TRYING TO TRACK DOWN THE BABY RUTH TRUTH BABY RUTH IS AN OLD HAND AT PRESIDENTIAL PUBLICITY ALTHOUGH MANY BELIEVE THE PRODUCT WAS NAMED FOR THE HOMERUN KING WHICH WOULD HAVE COST THE COMPANY A KING'S RANSOM IN ENDORSEMENT FEES NESTLE HAS LONG MAINTAINED THAT THE SWEET WAS NAMED FOR THE DAUGHTER OF PRESIDENT GROVER CLEVELAND NO MATTER THAT BABY RUTH THE CANDY BAR WAS INTRODUCED IN 1921 AND BABY RUTH THE PRESIDENTIAL DAUGHTER HAD DIED SOME YEARS BEFORE 9303090151 930309 CANADIAN HOUSING STARTS OTTAWA CANADIAN HOUSING STARTS ROSE 58 IN FEBRUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 150800 FROM A JANUARY RATE OF 142600 CANADA MORTGAGE AND HOUSING CORPORATION A GOVERNMENT AGENCY SAID RITA DANIEL A SENIOR ANALYST AT THE AGENCY SAID THAT WHILE THE OVERALL LEVEL OF STARTS IS STILL RELATIVELY WEAK IT IS CONSISTENT WITH OUR FORECAST OF 177000 UNITS FOR 1993 IN 1992 HOUSING STARTS TOTALED 168271 9303090150 930309 WHO'S NEWS ELECTROCOM AUTOMATION INC ELECTROCOM AUTOMATION INC DALLAS GD THOMPSON WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE MAKER OF HIGHSPEED DOCUMENT PROCESSING SYSTEMS MR THOMPSON 55 YEARS OLD ALSO WAS APPOINTED TO THE COMPANY'S BOARD INCREASING ITS SIZE TO SEVEN MEMBERS AND TO THE BOARD OF MANAGEMENT OF ELECTROCOM AUTOMATION LP THE OPERATING PARTNERSHIP HE WAS PREVIOUSLY SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER 9303090149 930309 MCI INTRODUCES NEW SERVICE WASHINGTON MCI COMMUNICATIONS CORP SAID IT WILL BEGIN A SERVICE DESIGNED TO LOWER EXPENSES FOR RESIDENTIAL US CUSTOMERS WHO FREQUENTLY RECEIVE COLLECT CALLS FROM MEXICO THE SERVICE CALLED SERVICIO LLAMAME DE MCI PROVIDES MCI'S US CUSTOMERS WITH THEIR OWN TOLLFREE NUMBER AND A FOURDIGIT SECRET CODE FOR THEM TO GIVE CALLERS IN MEXICO CALLS FROM MEXICO ARE BILLED TO THE MCI CUSTOMERS IN THE US AT A PERMINUTE RATE FOR EACH OF TWO SERVICE AREAS IN MEXICO PLUS A MONTHLY SUBSCRIPTION FEE OF 5 THE LONGDISTANCE CARRIER ESTIMATED THAT US CUSTOMERS COULD SAVE AS MUCH AS 18 COMPARED WITH THE AVERAGE COST OF A COLLECT CALL 9303090148 930309 ADVERTISING PIZZA ADS WITH DASH OF HUMOR TOP POPS BY KEVIN GOLDMAN THE DURACELL BATTERY HAS FINALLY DIED COCACOLA HAS GONE A LITTLE FLAT AND THE CALIFORNIA RAISINS HAVE DRIED UP THESE WELLKNOWN PRODUCTS HAD BECOME PERENNIALS ON A CLOSELY WATCHED ANNUAL LIST OF THE MOST POPULAR TELEVISION COMMERCIALS NOW FOR THE FIRST TIME IN YEARS ADS FOR DURACELL AND CALIFORNIA RAISINS HAVE DISAPPEARED FROM THE TOP 25 ENTRIES ON THE LIST AND COKE HAS DROPPED TO ITS LOWEST POSITION SINCE THE RANKING STARTED 15 YEARS AGO VIDEO STORYBOARD TESTS INC'S ANNUAL SURVEY OF 22000 VIEWERS WHO WERE ASKED TO NAME OUTSTANDING ADVERTISING ALSO SHOWS THEY DIDN'T LOVE WHAT TOYOTA DID FOR THEM SINCE THEY PUT THE BRAKES ON THE AUTO MANUFACTURER AND BUMPED IT OUT OF THE TOP 25 FOR 1992 THE YEAR BEFORE TOYOTA HAD RANKED NO 14 AND MILLER LITE CONTINUED ITS FREE FALL DIPPING TO 17TH FROM 13TH IN 1991 EVEN THOUGH ITS MUCHDERIDED SLOGAN IT'S IT AND THAT'S THAT WAS SHELVED IN FAVOR OF THE EQUALLY LUKEWARM C'MON LET ME SHOW YOU WHERE IT'S AT TAKING THEIR PLACE ARE WELLEXECUTED CAMPAIGNS WITH DECIDEDLY HUMOROUS TONES AS WELL AS HEARTTUGGING SPOTS FEATURING FAMILY VALUES AND CUTIEPIE TYKES HUMOR IN ADVERTISING STILL SELLS WELL AFTER ALL THESE YEARS SAYS DAVID VADEHRA VIDEO STORYBOARD'S PRESIDENT AND WHAT IS DIFFERENT THIS TIME AROUND IS THAT THE HUMOR ADS ARE BEING EXECUTED WITHOUT CELEBRITIES THE ADS ARE JUST FUNNY FOR EXAMPLE THE NO 1 SPOT IN THIS YEAR'S SURVEY UNSEATING PEPSI AND DIET PEPSI IS LITTLE CAESARS PIZZA IT VAULTED INTO THE TOP SPOT FROM LAST YEAR'S NO 7 POSITION WITH THREE HUMOROUS SPOTS TWO DOGS VISITING A SHRINK AN ELDERLY MAN WHO SWIPES A SLICE OF PIZZA AS HE'S ABOUT TO BE WHEELED INTO SURGERY AND A PRECOCIOUS BOY WHO WEARS GLASSES THAT ENABLE HIM TO SEE THROUGH CLOTHING THE DETROITBASED FASTFOOD CHAIN WAS ABLE TO TOPPLE THE GIANT SOFTDRINK MAKER DESPITE SPENDING CONSIDERABLY LESS LITTLE CAESARS SPENT 564 MILLION ON ADVERTISING IN THE FIRST NINE MONTHS LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS PEPSI AND DIET PEPSI COMBINED SPENT 1018 MILLION IN THE SAME PERIOD FULLYEAR FIGURES WON'T BE AVAILABLE UNTIL THE END OF MARCH WE'VE BEEN ABLE TO MAKE AN EMOTIONAL CONNECTION WITH THE PUBLIC BRAGS RICHARD W OLSEN EXECUTIVE VICE PRESIDENT AND MANAGEMENT DIRECTOR AT CLIFF FREEMAN & PARTNERS THE AD AGENCY FOR LITTLE CAESARS SINCE LATE 1987 HIS SHOP CAME UP WITH THE MYSTIFYINGLY CATCHY SLOGAN PIZZA PIZZA SPOKEN BY A BALDHEADED CARTOON GNOME IN A TOGA SPORTING A SPEAR WITH TWO PIZZAS IT IS MR FREEMAN HIMSELF WHO UTTERS THE REDUNDANT TRADEMARK WE TEND TO GO MR OLSEN CONTINUES WITH SITUATIONS PEOPLE CAN RELATE TO MR OLSEN COULDN'T SAY EXACTLY HOW THE AVERAGE VIEWER WOULD RELATE TO PSYCHIATRISTS FOR PETS OR AN OLD MAN RACING THROUGH HOSPITAL HALLS ON A GURNEY WHATEVER IT APPARENTLY WORKS HUMOR ALSO ACCELERATED CHRYSLER'S JEEP ADVERTISING TO NO 18 LAST YEAR THE AUTO MAKER DIDN'T EVEN CRACK THE TOP 25 EVEN THOUGH JEEP HAD 17 DIFFERENT EXECUTIONS LAST YEAR THE ONLY FAVORABLE RESPONSE WAS FOR AN AMUSING AD TITLED THE DIRECTOR IN WHICH A FILM CREW FOR A RIVAL MAKER REALIZED IT NEEDED A JEEP AND NOT THE VEHICLE IT WAS ADVERTISING TO REACH A TRICKY LOCALE HUMOR AND A CONTINUING STORY LINE CATAPULTED REEBOK INTERNATIONAL'S CAMPAIGN FEATURING US OLYMPICS HOPEFULS DAN O'BRIEN AND DAVE JOHNSON IT STARTED OUT RISKY BY FOCUSING ON THE TWO LONG BEFORE THE OLYMPICS STARTED THEN SEEMED DOOMED WHEN MR O'BRIEN PERFORMED A COLOSSAL FLOP AND FAILED EVEN TO MAKE THE US TEAM AND FINISHED A SUCCESS BY MAKING FUN OF THE DEBACLE MR JOHNSON ULTIMATELY FINISHED WITH A BRONZE MEDAL THE CAMPAIGN FROM CHIAT/DAY GOODNATUREDLY PITTING THE TWO ATHLETES AGAINST EACH OTHER FINISHED NO 8 LAST YEAR REEBOK FINISHED OUT OF THE MONEY ITS LAST APPEARANCE WAS IN 1990 WHEN IT FILMED A SPOT SHOWING A BUNGEE JUMPER USING THE ATHLETIC SHOE REEBOK'S RIVAL NIKE CREPT UP TO NO 3 FROM NO 4 LAST YEAR WITH THE HELP OF BUGS BUNNY AND MICHAEL JORDAN AND AD AGENCY WIEDEN & KENNEDY CURIOUSLY BEER BRANDS WHICH USED TO BE HEADS AND SHOULDERS ABOVE OTHER CATEGORIES ON VIDEO STORYBOARD'S ANNUAL LIST HAVE FALLEN TO THE BOTTOM FOUR OF THE BOTTOM NINE COMMERCIALS THIS YEAR ARE BEERS MILLER LITE BUD LIGHT NO 20 UP FROM NO 21 COORS LIGHT NO 22 PLUNGING FROM 11TH AND MILLER GENUINE DRAFT NO 24 ITS FIRST APPEARANCE ON THE SURVEY THE EXCEPTION WAS BUDWEISER WHICH EDGED UP TO NO 7 FROM NO 8 ONE THEORY BANDIED ABOUT ON MADISON AVENUE IS THAT BEER SPOTS ARE LOOKING TOO SIMILAR TO ONE ANOTHER MOST FEATURE GOOD TIME CHARLIES AND CHARLOTTES CAVORTING ON BEACHES OR HANGING OUT IN BARS THE BEERS SAYS MR VADEHRA ARE IN DANGER OF LOSING THEIR IDENTITIES UNTIL RECENTLY COCACOLA WAS ALSO IN DANGER OF LOSING ITS IDENTITY THE POPULAR SOFT DRINK WAS RINGING UP NO SALE IN THE MEMORY OF TV VIEWERS THE FACT THAT COKE MADE THE LIST AT ALL IS A TAD MISLEADING BECAUSE MANY OF THOSE RESPONDING CREDITED A COMMERCIAL FOR DIET COKE THE ONE WITH PAULA ABDUL HIGH KICKING WITH GENE KELLY AMONG OTHERS AS ONE FOR THE SUGARLADEN BEVERAGE SAYS MR VADEHRA IN THE GOOD NEWS/BAD NEWS CATEGORY THE WILL THEY OR WON'T THEY OR HAVE THEY ALREADY SPOTS FROM TASTER'S CHOICE CONTINUE TO CLIMB IT CRACKED THE TOP 10 THIS YEAR MOVING UP SIX NOTCHES FROM NO 16 LAST YEAR THAT'S GOOD NEWS FOR MCCANNERICKSON THE AD AGENCY BEHIND THE CAMPAIGN THE BAD NEWS THE AGENCY WILL NOW BE FURTHER INSPIRED TO CREATE MORE CHAPTERS IN THE NEVERENDING COFFEE TEASE EVERYONE TRIES TO DO A SERIAL COMMERCIAL AND FEW SUCCEED SAYS MR VADEHRA WITH TASTER'S CHOICE HE SAYS VIEWERS TRY TO FIGURE OUT WHAT WILL HAPPEN NOR SHOULD ANYONE UNDERESTIMATE THE DURABILITY OF A CAMPAIGN THAT WITH ANY JUSTICE SHOULD HAVE RUN OUT OF STEAM A LONG TIME AGO DURACELL'S ARCHRIVAL IN BATTERY COMPETITION EVEREADY ENERGIZER AND THE PINK DRUMPOUNDING BUNNY THAT HAS BEEN THE SUBJECT OF SCORN AND EVEN VIOLENCE DAVID LETTERMAN ONCE KNOCKED OFF ITS HEAD USING A BASEBALL BAT IS HANGING TOUGH IT DROPPED TO NO 6 FROM SECOND PLACE LAST YEAR PEOPLE SAYS MR VADEHRA ARE GETTING TIRED OF THIS ONE UNUSUALLY TWO BROADCAST NETWORKS CBS AND GENERAL ELECTRIC'S NBC LANDED ON THE LIST WITH SPOTS PROMOTING THEIR COVERAGE OF THE WINTER AND SUMMER OLYMPICS RESPECTIVELY BOTH WERE SENTIMENTAL SPOTS NBC TRUMPETING THE US BASKETBALL DREAM TEAM AND CBS SHOWING THE DEDICATION OF PARENTS TO THEIR CHILDREN WHO WANT TO BE OLYMPIC CONTENDERS SAYS MR VADEHRA NEVER UNDERESTIMATE PATRIOTISM MASTERCARD INTERNATIONAL INC IS ACCUSING AMERICAN EXPRESS CO OF USING FALSE AND MISLEADING ADS TO TOUT ITS CORPORATE CREDIT CARD THE SUIT FILED IN FEDERAL COURT IN MANHATTAN SEEKS TO BLOCK THREE PRINT ADS FROM RUNNING MONEY DAMAGES EQUAL TO AT LEAST THE VALUE OF THE AD CAMPAIGN AND PUNITIVE DAMAGES IN ONE AD KNOWN AS NO HIDDEN AGENDAS AMERICAN EXPRESS SAYS ITS CORPORATE CARD IS SUPERIOR TO OTHERS BECAUSE THERE ARE NO LATE FEES OR OTHER CHARGES NOT TRUE SAYS MASTERCARD AMERICAN EXPRESS DOES ASSESS PENALITIES IF PAYMENTS ARE DELINQUENT WE DON'T BELIEVE THERE'S ANY MERIT TO THE SUIT AT ALL SAID CHRISTINE LEVITE DIRECTOR OF PUBLIC AFFAIRS FOR AMERICAN EXPRESS TRAVEL RELATED SERVICES WE ARE VERY CONFIDENT THAT ANYTHING SAID IN THE ADS CAN BE WELL DOCUMENTED PARKER BAGLEY AN ATTORNEY FOR MASTERCARD SAID THE SUIT WAS FILED AFTER AMERICAN EXPRESS DECLINED A REQUEST TO WITHDRAW THE ADS FRANK PERDUE BECAME A HOUSEHOLD FACE BY APPEARING IN CHICKEN ADS WITH THE SLOGAN IT TAKES A TOUGH MAN TO MAKE A TENDER CHICKEN NOW HIS COMPANY PERDUE FARMS INC HAS FILED A TRADEMARKINFRINGEMENT SUIT IN NEW YORK STATE SUPREME COURT AGAINST EMPIRE KOSHER POULTRY INC BECAUSE EMPIRE HAS RUN ADS IN NEW YORK CITY SUBWAYS AND NEWSPAPERS PICTURING MOSES AND THE HEADLINE IT TAKES AN EVEN TOUGHER MAN TO MAKE A KOSHER CHICKEN PERDUE SALISBURY MD TRIED UNSUCCESSFULLY FRIDAY TO WIN A TEMPORARY RESTRAINING ORDER AGAINST THE EMPIRE AD A PERDUE SPOKESMAN SAID THE DECISION WAS MOOT BECAUSE EMPIRE HAD ALREADY AGREED TO STOP RUNNING THOSE ADS EMPIRE INTENDS TO DEFEND ITSELF AGAINST THE SUIT ACCORDING TO A COMPANY STATEMENT WHICH ADDS THAT ITS NEXT EFFORT MAY DEPICT DAVID AND GOLIATH A PERDUE SPOKESMAN IS UNIMPRESSED PERDUE WAS A SMALL COMPANY ONCE HE SNIFFS AND THEY DIDN'T INFRINGE ON TRADEMARKS TO GET BIG 9303090147 930309 PUBLICKER TO SELL SOME ASSETS OLD GREENWICH CONN PUBLICKER INDUSTRIES INC SAID IT AGREED TO SELL MOST OF THE ASSETS OF ITS AMERICAN CRYOGAS INDUSTRIES INC SUBSIDIARY FOR 14 MILLION THE ASSETS ARE BEING ACQUIRED BY MESSER GRIESHEIM INDUSTRIES INC A SUBSIDIARY OF MESSER GRIESHEIM GMBH WHICH IS PART OF THE HOECHST FAMILY OF COMPANIES AMERICAN CRYOGAS PRODUCES LIQUID AND SOLID CARBON DIOXIDE AND RELATED PRODUCTS WITH 1992 SALES OF ABOUT 14 MILLION PUBLICKER OPERATES 10 COMPANIES IN MANUFACTURING DISTRIBUTION AND SERVICES 9303090146 930309 FINANCING BUSINESS CENTURY COMMUNICATIONS CORP CENTURY COMMUNICATIONS CORP NEW CANAAN CONN SAID IT WITHDREW ITS SHELF REGISTRATIONS OF 10 MILLION CLASS A COMMON SHARES AND 150 MILLION OF PREFERRED STOCK THE SHELF REGISTRATIONS WERE FILED TWO YEARS AGO THE COMPANY SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION COMPANY OFFICIALS COULDN'T BE REACHED TO SAY WHY THE SHELF REGISTRATIONS WERE WITHDRAWN 9303090145 930309 WHO'S NEWS ALDUS CORP ALDUS CORP SEATTLE DANA GOSNEY WAS NAMED VICE PRESIDENT OF OPERATIONS FOR THIS COMPUTER SOFTWARE COMPANY MR GOSNEY 45 YEARS OLD WAS VICE PRESIDENT HUMAN RESOURCES AT FRAME TECHNOLOGY CORP AT ALDUS HE FILLS A POSITION LEFT VACANT WHEN SANDY SMITH WAS PROMOTED LAST YEAR TO CHIEF OPERATING OFFICER 9303090144 930309 WHO'S NEWS EXABYTE CORP EXABYTE CORP BOULDER COLO RALPH Z SORENSON 59YEAROLD DEAN OF THE COLLEGE OF BUSINESS AND ADMINISTRATION AT THE UNIVERSITY OF COLORADO AT BOULDER WAS NAMED TO THE BOARD OF THIS MAKER OF DATASTORAGE DEVICES INCREASING MEMBERSHIP TO SEVEN 9303090143 930309 AMOCO CORP DEBT REDEMPTION CHICAGO AMOCO CORP SAID IT WILL FULLY REDEEM ON APRIL 9 322897000 OF THE PRINCIPAL AMOUNT OF ITS 7 7/8 DEBENTURES DUE AUG 1 2007 THE REDEMPTION PRICE WILL BE 103 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF REDEMPTION 9303090142 930309 WORDSTAR'S PROGRAM PURCHASE NOVATO CALIF WORDSTAR INTERNATIONAL INC SAID IT PURCHASED A WORDPROCESSING PROGRAM FOR MACINTOSH COMPUTERS FROM T/MAKER CO A CLOSELY HELD CONCERN IN MOUNTAIN VIEW CALIF THE PURCHASE FOR AN UNDISCLOSED AMOUNT OF CASH AND ROYALTY PAYMENTS GIVES WORDSTAR WHICH SELLS WORD PROCESSORS FOR PERSONAL COMPUTERS MADE BY INTERNATIONAL BUSINESS MACHINES CO AN ENTRY INTO THE MARKET FOR SOFTWARE USED WITH APPLE COMPUTER INC'S MACINTOSH SEPARATELY WORDSTAR SAID IT RAISED 45 MILLION IN CAPITAL FROM A GROUP OF INVESTORS LED BY APPLEWOOD ASSOCIATES AN INVESTMENT FIRM IN ROSLYN NY 9303090141 930309 MARKETING & MEDIA TURNER PLANS NETWORK IN EUROPE EXPANSION OF CARTOON CHANNEL ATLANTA TURNER BROADCASTING SYSTEM INC SAID IT WILL LAUNCH A 24HOUR ENTERTAINMENT NETWORK IN EUROPE AND WILL EXPORT ITS CARTOON NETWORK TO LATIN AMERICA THE FIVEMONTHOLD CARTOON NETWORK WILL GO INTERNATIONAL IN APRIL TURNER SAID WITH THREE AUDIO FEEDS ONE IN ENGLISH ONE WITH MOST CARTOONS IN SPANISH AND A THIRD WITH SELECTED CARTOONS DUBBED IN PORTUGUESE THAT FORMAT IS SIMILAR TO THE ONE USED BY TNT LATIN AMERICA A TWOYEAROLD TURNER SERVICE THAT HAS AN ESTIMATED ONE MILLION VIEWERS TURNER SAID THE EUROPEAN NETWORK TO BE CALLED TURNER NETWORK TELEVISION EUROPE WILL MAKE ITS DEBUT IN SEPTEMBER AS A HYBRID WITH THE CARTOON NETWORK DURING THE DAY AND TNT FILMS FROM 8 PM TO 6 AM WILLIAM H GRUMBLES TURNER'S VICE PRESIDENT OF WORLDWIDE DISTRIBUTION SAID THE COMPANY MAY EVENTUALLY OFFER THE TWO NETWORKS SEPARATELY IN EUROPE HE SAID THAT TURNER AT PRESENT WOULD HAVE TROUBLE FILLING 24 HOURS OF TNT PARTLY BECAUSE EUROPEAN RIGHTS TO MANY OF ITS FILMS ARE HELD BY OTHERS BUT MR GRUMBLES SAID THE COMPANY WANTED TO ACT NOW BECAUSE A TRANSPONDER ON THE NEW ASTRA 1C SATELLITE WAS BECOMING AVAILABLE AND BECAUSE AN EXPLOSION OF RIVAL IDEAS FOR NEW ENTERTAINMENT NETWORKS WAS THREATENING TO FILL UP CHANNEL CAPACITY IN SOME COUNTRIES MR GRUMBLES SAID TURNER IN RECENT YEARS HAS MANAGED ITS SALE OF FILM RIGHTS TO OVERSEAS BROADCASTERS IN A WAY THAT WILL LEAVE AVAILABLE TO TNT EUROPE AT ANY GIVEN TIME MOST OF THE 2500 FILMS TURNER CAN DISTRIBUTE OVERSEAS AND THE COMPANY SAID IT PLANS TO ACQUIRE OUTSIDE PROGRAMMING FOR THE SERVICE STILL MR GRUMBLES SAID AN AGREEMENT INHERITED IN THE 1986 PURCHASE OF THE MGM FILM LIBRARY PREVENTS TURNER FROM OFFERING THOSE FILMS IN GERMAN FOR THE NEXT FEW YEARS THAT WILL KEEP TURNER FROM TARGETING EUROPE'S LARGEST CABLE MARKET INSTEAD TURNER SAID IT WILL BEGIN SUBTITLING AND DUBBING SOME FILMS IN FRENCH SWEDISH AND NORWEGIAN AND WILL ADD OTHER LANGUAGES LATER 9303090139 930309 END POLAND'S WORLDCLASS CREDIT CRUNCH BY THERESE RAPHAEL WARSAW POLAND HAS TURNED A CORNER TODAY OVER HALF THE WORK FORCE IS IN THE PRIVATE SECTOR SEVENTYFIVE PERCENT OF CONSTRUCTION IS PRIVATE AS IS 80 OF RETAILING 60 OF ROAD TRANSPORT AND EVEN 27 OF INDUSTRIAL SALES ACCORDING TO THE POLISHAMERICAN ENTERPRISE FUND POLAND'S MANY SMALL COMPANIES NOW MUST SOMEHOW GROW INTO MIDSIZE COMPANIES THAT TAKES CAPITAL AND POLAND IS STILL FAR FROM HAVING A WELLDEVELOPED VENTURE CAPITAL MARKET ROUGHLY 85 OF PRIVATESECTOR CAPITAL COMES FROM FAMILY OR FRIENDS THOSE WITHOUT WELLHEELED CONNECTIONS MIGHT TRY TO GET A BANK LOAN BUT ODDS ARE THAT THE BANKS WON'T HELP THEIR BOOKS ARE OVERLOADED WITH BAD LOANS ONE OF THE BIGGEST PROBLEMS FACING THE ECONOMY THE KEY BARRIER TO A FULLFLEDGED MARKET IN POLAND AND CENTRAL EUROPE IN GENERAL IS THE LACK OF A BANKING AND FINANCIAL SYSTEM ABLE TO SERVICE INVESTMENTHUNGRY BUSINESS WITH THE MACROECONOMY MORE OR LESS IN ORDER POLAND NOW NEEDS BANK RESTRUCTURING AND ENTERPRISE PRIVATIZATION TO PUMP UP ANEMIC EQUITY MARKETS AND IT NEEDS DEFICIT REDUCTION AND A RESOLUTION OF POLAND'S FOREIGN DEBT PROBLEM TO ATTRACT WESTERN CAPITAL POLAND'S NINE STATE COMMERCIAL BANKS WERE SPUN OFF FROM THE NATIONAL BANK OF POLAND IN 1988 AND SET UP AS JOINT STOCK COMPANIES BUT POLAND FOUND THAT MERELY CHANGING THE NAMES DIDN'T MAKE THEM INTO WESTERNSTYLE BANKS THOUGH THE BANKS ARE NOW RELATIVELY INSULATED FROM POLITICAL MEDDLING YEARS OF PROFLIGATE LENDING TO STATE ENTERPRISES HAVE WREAKED HAVOC ON THEIR BALANCE SHEETS THE BAD DEBT RATIO FOR STATE BANKS IS ABOUT 25 TO 35 OF THEIR LOAN PORTFOLIOS MOREOVER THE COMBINATION OF BAD LOANS AND RECESSION HAVE SENT BANKS' CAPITALTOASSETS RATIOS INTO A TAILSPIN BAD LOANS ARE THE TAPEWORM OF THE BANKING INDUSTRY EATING UP CAPITAL AND GROWING FATTER ON CAPITALIZED INTEREST THAT THE BANKS NEVER SEE POLAND'S CENTRAL BANK REQUIRES BANKS TO KEEP PROVISIONS OF UP TO 20 OF THE VALUE OF LOANS NOT BEING SERVICED COLLATERAL WHERE IT EXISTS CAN'T BE DEDUCTED FROM THESE PROVISIONS PROVISIONS IN MOST CASES ARE TAXED WHICH CUTS INTO NET PROFITS ALL THIS IS ESPECIALLY TOUGH ON BUSINESSES SEEKING A LOAN CEZARY STYPULKOWSKI PRESIDENT OF BANK HANDLOWY WHICH HANDLES 75 OF POLAND'S FOREIGN TRADE FINANCING SAYS MOST BANKS ARE NOT PREPARED TO DEAL WITH PRIVATE CUSTOMERS SINCE THEY'VE BEEN DEALING ONLY WITH STATE ENTERPRISES ALL THIS TIME THE PRIVATE BUSINESSES HAVE NO TRACK RECORD OR EXPERIENCE AND THE PRESENTATION OF THEIR PRODUCT IS USUALLY PRIMITIVE THOUGH A NETWORK OF ABOUT 100 PRIVATE BANKS HAS SPRUNG UP MOST OF THESE OPERATE WITH SMALL CAPITAL BASES AND HAVE NO EXPERIENCE IN ASSESSING LOAN APPLICATIONS OR NEGOTIATING TERMS OF CREDIT THEY LENT FREELY IN 1989 AND 1990 AND THEN LOST BIG WHEN POLAND OPENED TO IMPORTS CUT BACK SUBSIDIES AND SAW THE ECONOMY PLUNGE MOREOVER EVEN WHERE CREDIT IS AVAILABLE COLLATERAL USUALLY ISN'T HOMES CAN BE PRIVATELY OWNED BUT THEY CAN'T BE USED AS COLLATERAL THE REAL ESTATE MARKET IS UNDERDEVELOPED AND DIFFICULT TO PRICE ONCE COLLATERAL IS SETTLED ON CLAIMING IT IF THE LOAN GOES BAD IS A LONG HAUL THROUGH BUREAUCRATIC SLUDGE SLOW COURTS AND OPAQUE LEGAL GUIDELINES OF COURSE WITH INTEREST RATES RUNNING FROM 38 TO 60 MOST PRIVATE BUSINESSES DON'T EVEN BOTHER DISCUSSING THINGS LIKE COLLATERAL CAUTIOUS BY NATURE BANKS ARE FINDING GOVERNMENT PAPER THE SAFEST BET FROM LESS THAN 3 OF BANK ASSETS IN 1991 GOVERNMENT SECURITIES GREW TO 66 IN 1992 AND AS MUCH AS 27 IN SOME BANKS AS DAUNTING AS THESE PROBLEMS ARE THE MINISTRY OF FINANCE HAS PROPOSED A WAY OUT THE STATE WOULD USE THE 1 BILLION INTERNATIONAL MONETARY FUND STABILIZATION FUND STILL UNTOUCHED AND 300 MILLION FROM THE WORLD BANK TO RECAPITALIZE THE BANKS 20 OF THE VALUE OF LOANS WITH A DECENT CHANCE OF BEING REPAID WOULD BE COVERED 50 OF THOSE CATEGORIZED AS DOUBTFUL AND NEARLY THE WHOLE VALUE OF LOANS CONSIDERED A TOTAL LOSS THIS WOULD GIVE BANKS AN INCENTIVE TO BE AGGRESSIVE IN COLLECTING LOANS WITH POTENTIAL WHILE FREEING THEM FROM CHRONICALLY BAD DEBTORS INVESTORS WOULD ALSO BE ABLE TO PURCHASE ENTERPRISE DEBT ON THE SECONDARY MARKETS AND SWAP IT FOR EQUITY IF INVESTORS BUY THE DEBT THE ENTERPRISES GAIN A BETTER DEBTTOEQUITY RATIO PLUS NEW MANAGEMENT AND TECHNOLOGY THEN YOU START TO SEE A WAY OUT SAYS SLAWOMIR SIKORA DIRECTOR OF THE DEPARTMENT FOR BANKING AND FINANCIAL INSTITUTIONS IN THE MINISTRY OF FINANCE ENTERPRISES AND BANKS CAN THEN BE PRIVATIZED HE SAYS THOUGH THIS WON'T HAPPEN OVERNIGHT BUT IF FOREIGN CAPITAL IS TO PLAY A ROLE IN THIS PROCESS AS THE GOVERNMENT WOULD LIKE POLAND MUST GET ITS BUDGET DEFICIT UNDER CONTROL AND REACH A SETTLEMENT OVER ITS FOREIGN DEBT THE BUDGET APPROVED LAST MONTH SHOULD BRING THE DEFICIT DOWN TO THE 5 OF GROSS DOMESTIC PRODUCT REQUIRED BY THE IMF THIS OPENS THE WAY FOR IMF CREDITS AND FOR FORGIVENESS OF SOME OF THE 12 BILLION THAT POLAND OWES THE LONDON CLUB OF COMMERCIAL CREDITORS POLAND'S DEFAULT ON ITS SOVEREIGN DEBT PAYMENTS HAS KEPT WESTERN BANKERS WARY OF INVESTING IN THE COUNTRY AND PREVENTED POLISH BANKERS FROM GAINING ACCESS TO WESTERN CAPITAL MARKETS IN A RECENT INTERVIEW PRIME MINISTER HANNA SUCHOCKA SAYS THE WHOLE BANKING SYSTEM AND ESPECIALLY CREDITS GIVEN TO INVESTORS ARE STRICTLY LINKED TO BUDGETARY DISCIPLINE ONLY THIS DEFICIT LEVEL WILL MAKE IT POSSIBLE TO REDUCE INFLATION AND ONLY CONTROLLED INFLATION WILL ALLOW FOR CHEAP CREDIT TO ATTRACT THE INVESTMENTS WE NEED UNDERLYING ALL THE TURMOIL IS THE MESSAGE THAT SHOCK THERAPY WORKED PRIVATE ENTERPRISE IS UP AND WALKING IF IT IS GOING TO RUN THOUGH POLAND WILL HAVE TO DEVELOP A FINANCIAL SECTOR ABLE TO SUPPORT THE GROWTH OF BUSINESS MISS RAPHAEL IS DEPUTY FEATURES EDITOR OF THE WALL STREET JOURNAL EUROPE 9303090138 930309 TRANSCANADA PIPELINES ACCORD CALGARY ALBERTA TRANSCANADA PIPELINES LTD AND TUSCARORA GAS TRANSMISSION CO A UNIT OF SIERRA PACIFIC RESOURCES CO SAID THEY AGREED TO BUILD A NATURAL GAS PIPELINE TO SERVE MARKETS IN RENO NEV NORTHERN NEVADA AND NORTHEASTERN CALIFORNIA THE COMPANIES SAID THE PROPOSED 200MILE PIPELINE WOULD COST ABOUT 130 MILLION AND WOULD HAVE AN INITIAL CAPACITY OF AS MUCH AS 120 MILLION CUBIC FEET OF GAS DAILY TRANSCANADA PIPELINES BASED IN CALGARY SAID IT'S TOO EARLY TO SAY WHAT PORTION OF THE PIPELINE'S COST IT WOULD FINANCE OR HOW MUCH OF THE JOINT VENTURE IT WOULD OWN SIERRA PACIFIC RESOURCES AN ENERGY CONCERN IS BASED IN RENO 9303090137 930309 WHO'S NEWS BEI ELECTRONICS INC BEI ELECTRONICS INC SAN FRANCISCO FORMER ARMY SECRETARY MICHAEL PW STONE 67 YEARS OLD WAS NAMED TO THE BOARD OF THIS DEFENSE SYSTEMS COMPANY INCREASING THE BOARD TO NINE MEMBERS 9303090136 930309 TEJAS GAS SETS STOCK SPLIT HOUSTON TEJAS GAS CORP SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT PAYABLE MARCH 22 TO STOCK OF RECORD MARCH 15 THE NATURAL GAS GATHERING TRANSPORTATION AND MARKETING COMPANY SAID IT HAD 6850000 SHARES OUTSTANDING BEFORE THE SPLIT 9303090135 930309 WHO'S NEWS CARLYLE'S INTERNATIONAL AFFILIATE WASHINGTON CARLYLE GROUP A MERCHANT BANKING AND INVESTMENT COMPANY SAID IT ESTABLISHED AN INTERNATIONAL MERCHANT BANKING AFFILIATE CARLYLE'S CHAIRMAN FRANK CARLUCCI WILL ALSO SERVE AS CHAIRMAN OF CARLYLE INTERNATIONAL THE NEW COMPANY CARLYLE INTERNATIONAL WILL PRINCIPALLY FOCUS ITS EFFORTS ON SEEKING STRATEGIC PARTNERS AND CAPITAL FOR INVESTMENTS IN THE US AND ON SEEKING ATTRACTIVE OVERSEAS INVESTMENTS FOR CARLYLE AND ITS STRATEGIC PARTNERS THE COMPANY SAID CARLYLE GROUP HOLDS INTERESTS IN SEVERAL LARGE COMPANIES INCLUDING GENERAL DYNAMICS CORP AND THE DEFENSEORIENTED CONSULTING FIRM BDM INTERNATIONAL INC IT RECENTLY ACQUIRED LTV CORP'S AIRCRAFT DIVISION 9303090134 930309 ORION CAPITAL TO REDEEM STOCK NEW YORK ORION CAPITAL CORP SAID IT WILL REDEEM ALL ITS ADJUSTABLERATE PREFERRED STOCK ON APRIL 7 FOR 50 A SHARE PLUS ACCRUED DIVIDENDS FROM APRIL 1 THE LAST DIVIDEND PAYMENT DATE THE PROPERTY/CASUALTY INSURANCE HOLDING COMPANY HAS 370400 PREFERRED SHARES OUTSTANDING GIVING THE REDEMPTION A VALUE OF ABOUT 185 MILLION 9303090133 930309 UNIVERSAL SEISMIC STOCK OFFER SUGAR LAND TEXAS UNIVERSAL SEISMIC ASSOCIATES INC SAID ITS PUBLIC OFFERING OF 16 MILLION COMMON SHARES WAS PRICED AT 425 A SHARE PROCEEDS OF THE OFFERING MANAGED BY SOUTHCOAST CAPITAL CORP WILL BE USED TO PURCHASE 3D SEISMIC EQUIPMENT FINANCE A PREVIOUSLY ANNOUNCED JOINT VENTURE WITH SEITEL INC AND PROVIDE WORKING CAPITAL THE SEISMIC SERVICES COMPANY SAID IT HAD 21 MILLION SHARES OUTSTANDING BEFORE THE COMMENCEMENT OF THIS OFFERING 9303090132 930309 LETTERS TO THE EDITOR SHAREHOLDERS SHOULD HAVE A SOAPBOX I WRITE AS THE SOLE DISSENTING MEMBER OF THE SECURITIES AND EXCHANGE COMMISSION SEC FROM THE DECISION TO PERMIT CRACKER BARREL OLD COUNTRY STORE INC TO EXCLUDE A SHAREHOLDER PROPOSAL TO IMPLEMENT NONDISCRIMINATORY EMPLOYMENT POLICIES RELATING TO SEXUAL ORIENTATION BLOCKING BIAS VIA PROXY BY JOHN C COFFEE JR EDITORIAL PAGE FEB 2 PROF COFFEE CORRECTLY IDENTIFIES THE DIFFICULTY IN DEVISING STANDARDS FOR THE INCLUSION OF SHAREHOLDER PROPOSALS THESE STANDARDS SHOULD GIVE CERTAINTY TO ISSUERS AND SHAREHOLDERS ALIKE AND ALSO BALANCE SHAREHOLDERS' RIGHTS TO PARTICIPATE IN IMPORTANT CORPORATE DECISIONS WITH THE NEED FOR CORPORATIONS TO RUN REASONABLY UNFETTERED THE DIFFICULTY IN CREATING STANDARDS HAS LED TO CASEBYCASE DECISION MAKING THAT SHIFTS WITH THE POLITICAL AND CORPORATE GOVERNANCE VIEWS OF THE STAFF AND INDIVIDUAL COMMISSIONERS SINCE DISSENTING FROM THE SEC DECISION IN 1991 TO PERMIT CAPITAL CITIES/ABC TO EXCLUDE A PROPOSAL CONCERNING AFFIRMATIVE ACTION I HAVE URGED ADOPTION OF A BROADER INTERPRETATION OF RULE 14A8 GENERALLY PERMITTING MOST SHAREHOLDER PROPOSALS TO BE INCLUDED UNLESS MISLEADING DUPLICATIVE OR TRIVIAL I DO NOT BELIEVE THAT ALL SOCIAL POLICY ISSUES SHOULD BE AUTOMATICALLY INCLUDED AS WAS SEC PRACTICE IN THE 1970S AND 1980S NOR DO I BELIEVE THAT THE CURRENT APPROACH WHICH HAS TENDED TOWARD EXCLUSION OF ALL SOCIAL ISSUES IS APPROPRIATE BUT WHERE SOCIAL ISSUES ARE DIRECTLY TIED TO THE BUSINESS OPERATIONS OF THE ISSUER AS IN CRACKER BARREL INCLUSION IS APPROPRIATE TO PROCLAIM THAT THE SHAREHOLDERS AS OWNERS OF THE CORPORATION DO NOT HAVE A LEGITIMATE INTEREST IN MANAGEMENTSANCTIONED DISCRIMINATION AGAINST EMPLOYEES DEFIES LOGIC RECOUPLING SOCIAL ISSUES WITH AN ECONOMIC OR BUSINESS NEXUS TO THE CORPORATION APPROPRIATELY LIMITS THE USE OF THE PROXY AS A SOAPBOX FOR SOCIAL AGENDAS BUT MAINTAINS THE SHAREHOLDERS' FRANCHISE IN A MEANINGFUL WAY WHILE COGNIZANT OF THE EFFECT THAT OPENING THE FLOODGATES MIGHT HAVE I BELIEVE THERE ARE MORE RATIONAL WAYS TO PLACE LIMITATIONS ON THE USE OF THE PROXY WE COULD REQUIRE THE ECONOMIC NEXUS FOR SOCIAL POLICY QUESTIONS TO BE A REAL AND SUBSTANTIAL ONE WE COULD INCREASE THE FAVORABLE VOTE REQUIREMENT OR AS PROF COFFEE SUGGESTS RAISE THE LEVEL OF SHARE OWNERSHIP NECESSARY TO SUBMIT A SHAREHOLDER PROPOSAL THE GOAL OF SIMPLIFYING THE PROXY PROCESS MUST NOT COME AT THE EXPENSE OF LEGITIMATE EXERCISE OF THE SHAREHOLDER FRANCHISE 9303090131 930309 ECONOMY CLINTON PACKAGE TO EASE CREDIT CRUNCH INCLUDES PLAN TO SPUR REAL ESTATE MARKET BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PROGRAM TO EASE THE CREDIT CRUNCH WHICH WILL BE UNVEILED TOMORROW CONTAINS A PACKAGE OF MEASURES DESIGNED TO BRING NEW LIFE TO DEPRESSED REAL ESTATE MARKETS THE PRIMARY GOAL OF THE FIVEPART PROGRAM IS TO MAKE IT EASIER FOR BANKS TO LEND TO SMALL BUSINESSES BUT AS ADMINISTRATION OFFICIALS AND BANK REGULATORS STUDIED SMALL BUSINESS LENDING CONDITIONS THEY REALIZED THAT BANKS WILL BE RELUCTANT TO LEND MORE UNTIL REAL ESTATE MARKETS ARE MORE LIQUID AND BANKERS ARE MORE CONFIDENT ABOUT THE VALUE OF REAL ESTATE REAL ESTATE IS OFTEN USED AS COLLATERAL FOR SMALL BUSINESS LOANS OTHER MAJOR SMALL BUSINESS PORTIONS OF THE PROGRAM HAVE BEEN DISCLOSED BEFORE BUT NOT THOSE INVOLVING REAL ESTATE ONE KEY PROVISION OF THE CLINTON PLAN WOULD MAKE IT EASIER FOR BANKS TO SELL REAL ESTATE THEY HAVE OBTAINED AFTER FORECLOSING ON LOANS A NEW REGULATION WILL ALLOW BANKS TO LEND MONEY TO SOMEONE WHO BUYS FORECLOSED PROPERTY FROM THE BANK AND TO TREAT THE LOAN AS A NORMAL PERFORMING CREDIT CURRENT REGULATIONS MAKE SUCH FINANCING DIFFICULT BY RESTRICTING HOW IT IS CARRIED ON THE BANK'S BOOKS THE CHANGE SHOULD SPEED THE SALE OF THE 28 BILLION IN FORECLOSED PROPERTY THAT BANKS CARRIED ON THEIR BOOKS AT THE END OF THE THIRD QUARTER IN PARTICULAR THE CHANGE SHOULD CLEAR THE WAY FOR SOME BANKS TO SELL OFF FORECLOSED PROPERTIES IN PACKAGES RATHER THAN ONE BY ONE THIS IS A CHEAPER MORE EFFICIENT WAY TO SHED UNWANTED ASSETS THE ADMINISTRATION'S PACKAGE WILL MODERNIZE A SERIES OF OUTDATED REGULATIONS AND EXAMINER ATTITUDES AND MAKE IT EASIER FOR LENDERS TO LEND DEPUTY TREASURY SECRETARY ROGER ALTMAN TOLD A MEETING OF THE INSTITUTE FOR INTERNATIONAL BANKERS THE MEASURES WILL DELIVER ON MR CLINTON'S PROMISES TO TRY TO SPUR LENDING TO SMALL BUSINESS ALTHOUGH MANY OF THE CHANGES ARE TECHNICAL MR CLINTON RECENTLY SPENT ABOUT AN HOUR REVIEWING DETAILS OF THE PROGRAM ALL FOUR BANKREGULATORY AGENCIES THE COMPTROLLER OF THE CURRENCY THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION HAVE AGREED TO THE CHANGES IN PRINCIPLE STILL IT WILL TAKE THE AGENCIES ABOUT THREE MONTHS TO COMPLETE THE ADMINISTRATIVE STEPS REQUIRED TO PROMULGATE THE CHANGES DETAILS OF THE PROGRAM REMAIN SUBJECT TO CHANGE BUT PEOPLE FAMILIAR WITH THE ADMINISTRATION'S INITIATIVE SAY IT COVERS THESE FIVE AREAS LOANS TO SMALL AND MEDIUMSIZE BUSINESSES AS REPORTED THE PROGRAM WILL FREE TOPRATED BANKS THOSE IN THE TOP TWO OF THE FIVE SUPERVISORY RANKINGS FROM CURRENT RULES THAT REQUIRE THEM TO APPLY A LONG LIST OF LENDING CRITERIA AND DOCUMENTATION REQUIREMENTS TO EVERY SMALLBUSINESS LOAN THIS WILL ALLOW THEM TO MAKE LOANS OF AS MUCH AS A CERTAIN SIZE PROBABLY 250000 BASED ON THE BORROWER'S CHARACTER AND REPUTATION AS LONG AS THE LOANS FALL WITHIN CERTAIN BROAD LENDING STANDARDS REAL ESTATE ASIDE FROM MAKING IT EASIER FOR BANKS TO SELL FORECLOSED PROPERTY AGENCIES WILL RELAX APPRAISAL REQUIREMENTS FOR REAL ESTATE APPRAISAL REQUIREMENTS WILL BE EASED OR ELIMINATED FOR REAL ESTATE SECURING SMALLBUSINESS LOANS IN ADDITION APPRAISAL THRESHOLDS WILL BE RAISED FOR OTHER REAL ESTATE LOANS THIS WILL REDUCE THE COST TIME AND PAPERWORK OF OBTAINING LOANS THE AGENCIES ALSO WILL INSTRUCT EXAMINERS TO AVOID FORCING BANKS TO WRITE DOWN TROUBLED LOANS TO THE LIQUIDATION OR FIRESALE VALUE OF UNDERLYING REAL ESTATE IN CASES WHERE IT MAKES MORE SENSE TO ASSUME THAT PROPERTY WILL BE SOLD AT HIGHER VALUE APPEALS AND COMPLAINTS PROCESS AGENCIES WILL ESTABLISH OMBUDSMEN TO DEAL WITH COMPLAINTS FROM BANKS AS WELL AS REJECTED BORROWERS WHO BELIEVE THEY WERE DISCRIMINATED AGAINST EXAMINATIONS AGENCIES WILL WORK TOGETHER TO ELIMINATE DUPLICATION OVERLAP AND CONFLICTING GUIDANCE TO BANKS EXAMINERS ALSO WILL RECEIVE NEW INSTRUCTIONS ON HOW TO DEAL WITH OTHER ASSETS ESPECIALLY MENTIONED SOME EXAMINERS HAVE IMPROPERLY LUMPED SUCH LOANS WHICH HAVE RAISED CONCERNS BUT AREN'T YET CLASSIFIED AS TROUBLED WITH LOANS THAT BANKS MUST HOLD RESERVES AGAINST FUTURE MEASURES THE REGULATORS PLAN TO LOOK AT ACCOUNTING CHANGES THAT WOULD MAKE IT EASIER FOR BANKS TO RESTORE TROUBLED LOANS TO HEALTHY INCOMEEARNING STATUS MR ALTMAN SAID THE ADMINISTRATION MAY ALSO PROPOSE A PACKAGE OF LEGISLATIVE PROPOSALS LATER BUT GAVE NO DETAILS MR CLINTON DOES PLAN TO PROPOSE A PROGRAM TO ENCOURAGE THE ESTABLISHMENT OF COMMUNITY DEVELOPMENT BANKS TO BOOST LENDING IN THE INNER CITIES HE ALSO HAS MENTIONED THE POSSIBILITY OF ESTABLISHING A SECONDARY MARKET FOR SMALLBUSINESS LOANS WHICH WOULD ALLOW BANKS TO SELL SUCH LOANS JUST AS THEY SELL MORTGAGES AND CREDITCARD RECEIVABLES THE BANKING INDUSTRY WHILE PLEASED BY THE ADMINISTRATION'S PROGRAM WANTS MORE BANKERS ARE URGING CONGRESS TO REPEAL PARTS OF A 1991 BANKING LAW THAT TIGHTENED BANK REGULATION HOWEVER THE ADMINISTRATION DOESN'T WANT A LEGISLATIVE FIGHT ON BANKING LAWS NOW AND ISN'T LIKELY TO SUPPORT THE INDUSTRY'S EFFORTS IT COULD BE POLITICALLY COUNTERPRODUCTIVE FOR BANKING INTERESTS TO BE PERCEIVED AS DISMISSIVE OF THE RATHER SUBSTANTIAL CHANGES THAT THE ADMINISTRATION IS OFFERING SAID ORIN KRAMER A NEW JERSEY INVESTMENT ADVISER AND BANKING CONSULTANT TO THE CLINTON ADMINISTRATION THESE MEASURES SHOULD HAVE A STIMULATIVE EFFECT FOR BOTH BANKS AND BORROWERS 9303090130 930309 BUSINESS BRIEF BETZ LABORATORIES INC CONCERN EXPECTS ITS SALES FOR FIRST QUARTER TO DECLINE BETZ LABORATORIES INC SAID ITS FIRSTQUARTER SALES WILL BE SLIGHTLY LOWER THAN THE YEAREARLIER QUARTER REFLECTING CONTINUED SLUGGISHNESS IN HEAVY INDUSTRY BETZ BASED IN TREVOSE PA PRODUCES WATER TREATMENT CHEMICALS FOR VARIOUS INDUSTRIES BETZ SHARES FELL 225 OR 4 TO 57375 ON THE NEW YORK STOCK EXCHANGE BETZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN F MCCAUGHAN SAID JANUARY AND FEBRUARY SALES TO THE HYDROCARBON PROCESSING AND PAPER INDUSTRIES KEY CUSTOMER BASES FOR BETZ WERE WEAKER THAN EXPECTED MR MCCAUGHAN DECLINED TO ESTIMATE FIRSTQUARTER EARNINGS MR MCCAUGHAN ATTRIBUTED THE DIP IN SALES TO THE FACT THAT MANY INDUSTRIAL CUSTOMERS ARE STILL OPERATING BELOW CAPACITY AND ARE BUYING LESS EQUIPMENT HE SAID HE WAS CONFIDENT THAT DEMAND FOR BETZ'S PRODUCTS WOULD INCREASE AS THE ECONOMIC RECOVERY GAINED MOMENTUM 9303090129 930309 WHAT'S NEWS WORLDWIDE A SERB COMMANDER SAID HIS TROOPS WOULD ALLOW A PARTIAL EVACUATION IN BOSNIA THE BOSNIAN SERB MILITARY CHIEF AGREED TO ALLOW WOMEN CHILDREN AND THE ELDERLY TO FLEE TWO EASTERN ENCLAVES THAT HIS FORCES HAVE SEALED OFF FROM INTERNATIONAL AID BUT AS RELIEF OFFICIALS ANNOUNCED EVACUATION PLANS THE HEAD OF MUSLIMLED GOVERNMENT TROOPS IN BOSNIA ORDERED A COUNTERATTACK AGAINST SERBS TO FREE TRAPPED CIVILIANS THE ATTACK ENDED A UNILATERAL CEASEFIRE DECLARED WEEKS AGO BY THE GOVERNMENT FORCES IN BELGIUM THE EUROPEAN COMMUNITY GAVE SERBS TWO WEEKS TO SIGN A UN ACCORD PARTITIONING BOSNIA INTO 10 PROVINCES OR FACE TOUGHER SANCTIONS THE FBI SAID MORE SEARCH WARRANTS AND POSSIBLY MORE ARREST WARRANTS COULD BE ISSUED THIS WEEK IN THE WORLD TRADE CENTER BOMBING INVESTIGATION WORKERS BENEATH THE NEW YORK TWIN TOWERS COMPLEX CONTINUED TO INCH SLOWLY DOWN INTO THE BLAST CRATER WHICH IS EXPECTED TO HOLD IMPORTANT INFORMATION THE SUPREME COURT LET STAND A LOWER COURT DECISION THAT INVALIDATED A CRIMINAL BAN ON ABORTION IN LOUISIANA THE REFUSAL TO HEAR THE STATE'S APPEAL WAS EXPECTED IN LIGHT OF THE JUSTICES' RULING LAST YEAR THAT SUCH ACROSSTHEBOARD BANS ARE UNCONSTITUTIONAL THE LAW WAS ENACTED BY LOUISIANA LAWMAKERS IN 1991 BUT NEVER PUT INTO EFFECT THE JUSTICES THREW OUT A RULING THAT SAID A CONVICTED DEFENDANT AUTOMATICALLY FORFEITS THE RIGHT TO APPEAL IF HE ESCAPES BUT IS RECAPTURED BEFORE SENTENCING THE COURT REPEATED HOWEVER THAT THERE MIGHT BE CIRCUMSTANCES UNDER WHICH A DEFENDANT WHO TRIES TO FLEE WOULD LOSE THE RIGHT TO APPEAL WOMEN FACE A HIGHER RISK THAN MEN OF DYING IMMEDIATELY AFTER UNDERGOING A COMMON PROCEDURE TO CLEAR CLOGGED ARTERIES RESEARCHERS SAY THE STUDY IN THIS MONTH'S ISSUE OF THE JOURNAL CIRCULATION FOLLOWS AN EARLIER STUDY THAT ALSO FOUND A HIGHER RATE OF COMPLICATIONS AND DEATH AMONG WOMEN AFTER THE PROCEDURE A US JUDGE SAID CONGRESSIONAL DELEGATES FROM TERRITORIES AND THE NATION'S CAPITAL MAY VOTE ON THE HOUSE FLOOR IF THE VOTES DON'T TIP A LEGISLATIVE BALANCE BECAUSE ANY ROLL CALL IN WHICH THE DELEGATES' VOTES ARE DECISIVE WILL BE RETAKEN WITHOUT THEM THE FIVE CAN'T AFFECT THE RESULT THE JUDGE SAID THE SECURITY COUNCIL FORMALLY ENDORSED MAY ELECTIONS IN CAMBODIA WITHOUT PARTICIPATION OF THE KHMER ROUGE WHICH HAS VIOLATED A PEACE ACCORD THE UN COUNCIL'S UNANIMOUS RESOLUTION INCLUDED THE SUPPORT OF CHINA AN ALLY OF THE KHMER ROUGE EXCLUSION FROM THE VOTE WOULD BAR THE KHMER ROUGE FROM A GOVERNING ROLE SOUTH KOREA'S NEW PRESIDENT FIRED TWO KEY GENERALS LOYAL TO PAST MILITARYDOMINATED REGIMES IN A SURPRISE MOVE TO EXERT CIVILIAN CONTROL OVER THE ARMY AND OPEN A PATH TO POLITICAL AND ECONOMIC REFORM TWELVE DAYS INTO HIS TERM KIM YOUNG SAM ALSO FIRED THREE CABINET MINISTERS TAINTED BY CHARGES OF ETHICAL MISCONDUCT BRITAIN WILL RESUME TOPLEVEL CONTACTS WITH THE PALESTINE LIBERATION ORGANIZATION TODAY AN OFFICIAL SAID HE ADDED THAT FOREIGN OFFICE CHIEF HOGG WOULD MEET IN LONDON WITH A PALESTINIAN NEGOTIATOR AND TWO PLO REPRESENTATIVES BRITAIN BROKE OFF CONTACTS WITH THE PLO IN 1991 OVER LEADER ARAFAT'S SUPPORT FOR IRAQ'S SADDAM HUSSEIN SOUTH AFRICAN GUNMEN KILLED FOUR PEOPLE AND WOUNDED EIGHT IN THE THIRD ROAD AMBUSH IN A WEEK IN NATAL PROVINCE POLICE SAID THE ATTACKERS FIRED AT A BUS CARRYING 80 PEOPLE THE AFRICAN NATIONAL CONGRESS SAID THE BUS WAS CARRYING SUPPORTERS TO A COURT HEARING WHERE THREE ANC MEMBERS APPEARED IN CONNECTION WITH A MASSACRE LAST WEEK THE US INTENDS TO RELEASE 50 MILLION IN SECURITY AID FOR JORDAN HELD UP LAST YEAR BECAUSE OF THAT COUNTRY'S POOR PERFORMANCE IN UPHOLDING TRADE SANCTIONS AGAINST IRAQ ASSISTANT SECRETARY OF STATE DKEREJIAN SAID HE SAID THE DECISION HAD BEEN MADE PARTLY TO SUPPORT JORDAN'S ROLE IN MIDEAST TALKS KUWAIT WELCOMED A SENIOR IRAQI KURDISH LEADER JALAL TALABANI FOR TALKS ON HOW THEY CAN COOPERATE TO OVERTHROW IRAQ'S SADDAM HUSSEIN IT IS UNCLEAR HOW MUCH ASSISTANCE KUWAIT WOULD BE ABLE TO OFFER THE IRAQI OPPOSITION THE KUWAITIS HAD DISTANCED THEMSELVES FROM ALL IRAQIS AFTER THE GULF WAR ENDED IN EARLY 1991 DIED BILLY ECKSTINE 78 JAZZ SINGERBANDLEADER WHO HAD A STRING OF HIT RECORDS IN THE 1940S AND 1950S IN PITTSBURGH 9303090128 930309 INTERNATIONAL MARC RICH CEDES MAJORITY STAKE IN COMMODITIES FIRM HE FOUNDED BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MARC RICH THE MULTIMILLIONAIRE FUGITIVE WHO FLED THE GRASP OF US TAX AUTHORITIES A DECADE AGO RELINQUISHED HIS MAJORITY STAKE IN THE SWISS COMMODITIESTRADING COMPANY THAT BEARS HIS NAME MR RICH ALSO GAVE UP HIS POSITION AS CHIEF EXECUTIVE OFFICER IN THE FIRM MARC RICH & CO BASED IN ZUG SWITZERLAND TAKING OVER THE REINS IS WILLY STROTHOTTE A BRASH 48YEAROLD METALS AND ORES EXPERT MR STROTHOTTE WORKED AT MARC RICH FOR MORE THAN A DECADE BEFORE QUITTING LAST YEAR FOLLOWING DISAGREEMENTS WITH MR RICH THAT THE SWISS NEWS MEDIA CHARACTERIZED AS A POWER STRUGGLE IN A STATEMENT THE COMPANY SAID MR RICH WAS VERY PLEASED TO HAVE MR STROTHOTTE RETURN MARC RICH & CO WAS FORMED IN 1974 AFTER MR RICH AND FIVE COLLEAGUES QUIT PHILIPP BROTHERS TODAY THE TROUBLED PHIBRO ENERGY INC UNIT OF SALOMON INC TO SET UP A RIVAL TRADING COMPANY IT QUICKLY BECAME A MAJOR COMMODITIES TRADER WITH LARGE GLOBAL POSITIONS IN OIL METALS AND AGRICULTURAL PRODUCTS MARC RICH CLAIMS ANNUAL TURNOVER OF 30 BILLION AND MAINTAINS MORE THAN 1300 EMPLOYEES IN 50 BRANCHES WORLDWIDE IN 1983 MR RICH RAN AFOUL OF US LAW HE AND HIS BUSINESS PARTNER PINCUS GREEN FLED TO SWITZERLAND SHORTLY BEFORE THEY WERE INDICTED ON TAX EVASION RACKETEERING AND OTHER CHARGES STEMMING FROM AN ALLEGED INTERNATIONAL OILTRADING SCHEME MR RICH HUNKERED DOWN IN ZUG WHERE SWISS OFFICIALS REFUSED US REQUESTS FOR HIS EXTRADITION HE HAS ATTEMPTED WITHOUT SUCCESS TO REACH A SETTLEMENT WITH THE US THAT WOULD ALLOW HIM TO RETURN WITHOUT HAVING TO SPEND TIME IN JAIL MR RICH'S DECISION TO GIVE UP OWNERSHIP AND MANAGEMENT CONTROL OVER THE COMPANY HE HELPED FOUND REPRESENTS A CONCESSION TO THE YOUNGER GENERATION OF TRADERS THAT NOW ACCOUNTS FOR MOST OF THE COMPANY'S PROFITS THE 58YEAROLD MR RICH COMPANY SOURCES SAID STEPPED ASIDE NOW RATHER THAN RISK A REVOLT LIKE THE EXODUS HE HELPED ORCHESTRATE AT PHILIPP BROTHERS TWO DECADES AGO TO SOME EXTENT COMPANY OFFICIALS ALSO HOPE THAT AS MR RICH PULLS BACK FROM DAYTODAY CONTROL THE TRADING CONCERN WILL OVERCOME THE UNSAVORY REPUTATION IT HAS IN THE US AND ELSEWHERE BECAUSE OF MR RICH'S LEGAL PROBLEMS COMPANY OFFICIALS TRIED TO DAMP SPECULATION THAT MR RICH WHO OFTEN APPEARS ON LISTS OF THE WORLD'S WEALTHIEST PEOPLE IS SELLING HIS STAKE BECAUSE HE IS DESPERATE FOR CASH THERE HAS BEEN A LONGTERM PLAN TO PASS CONTROL OF THE COMPANY TO MINORITY SHAREHOLDERS MR STROTHOTTE WHO IS FAR MORE OUTSPOKEN THAN HIS SECRETIVE PREDECESSOR SAID IN A TELEPHONE INTERVIEW FROM ZUG THERE IS NOTHING EXCEPTIONAL IN THE TIMING OF THE MOVES PRIOR TO THE SHIFTS MR RICH HELD 51 OF MARC RICH & CO HOLDING AG THE HOLDING COMPANY THAT OWNS MARC RICH & CO OVER A PERIOD OF FIVE YEARS MR RICH PLANS TO REDUCE HIS STAKE TO 15 BY SELLING SHARES TO THE COMPANY'S 150 MINORITY SHAREHOLDERS MR RICH ALREADY HAS REDUCED HIS STAKE TO 40 ONE OFFICIAL ESTIMATED THE TOTAL VALUE OF THE COMPANY'S STOCK AT NEARLY 1 BILLION WHICH WOULD MEAN MR RICH STANDS TO GROSS ALMOST 360 MILLION FROM THE STOCK HE INTENDS TO SELL COMPANY OFFICIALS SAID MR RICH WILL REMAIN ACTIVE IN THE FIRM ALTHOUGH IT ISN'T CLEAR IN WHAT CAPACITY HE IS EXPECTED TO CONTINUE TO DRUM UP BUSINESS BY HOBNOBBING WITH GOVERNMENT OFFICIALS AND BUSINESS EXECUTIVES LEAVING MR STROTHOTTE TO CONTROL DAYTODAY MANAGEMENT ONE MARC RICH MANAGER SAID MR RICH MAY BECOME DE FACTO CHAIRMAN IN A COMPANY THAT LARGELY FORGOES TITLES 9303090127 930309 WHO'S NEWS BWIP HOLDING SAYS THREE DIRECTORS QUIT FIVE NAMED TO BOARD LONG BEACH CALIF BWIP HOLDING INC SAID THREE DIRECTORS ASSOCIATED WITH THE INVESTMENT BANKING CONCERN THAT LED A 1987 PURCHASE OF THE COMPANY RESIGNED AND THAT FIVE NEW DIRECTORS WERE NAMED TO AN EXPANDED BOARD THE MAKER OF INDUSTRIAL PUMPS AND FLUID CONTROL SYSTEMS SAID B CHARLES AMES PETER F DOLLE AND JOSEPH L RICE III PRINCIPALS IN THE INVESTMENT FIRM OF CLAYTON DUBILIER & RICE INC RESIGNED FROM THE BOARD BWIP HOLDING SAID THE NEW DIRECTORS INCLUDE GEORGE D LEAL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF DAMES & MOORE AN INTERNATIONAL ENGINEERING DESIGN AND CONSULTING FIRM JAMES S PIGNATELLI PRESIDENT AND CHIEF EXECUTIVE OF MISSION ENERGY CO A UNIT OF SCECORP AND WILLIAM C RUSNACK PRESIDENT OF ARCO TRANSPORTATION CO A UNIT OF ATLANTIC RICHFIELD CO THE COMPANY SAID TWO CURRENT BWIP HOLDING OFFICERS ALSO WERE ELECTED TO THE BOARD AL DUBROW PRESIDENT AND CHIEF OPERATING OFFICER AND EUGENE P CROSS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE COMPANY SAID MR CROSS WHO WAS PREVIOUSLY VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER HAD BEEN GIVEN THE NEW TITLE WITH THE CHANGES BWIP'S BOARD INCREASES TO EIGHT DIRECTORS FROM SIX PREVIOUSLY CLAYTON DUBILIER & RICE HAD OWNED 68 OF BWIP HOLDING'S COMMON STOCK WHEN BWIP HOLDING WAS FORMED IN 1987 TO ACQUIRE BUSINESSES FORMERLY OPERATED BY BORGWARNER CORP THE INVESTMENT BANKING CONCERN SOLD ITS BWIP HOLDING STOCK IN TWO SECONDARY STOCK OFFERINGS DURING 1992 9303090126 930309 TECHNOLOGY TEXAS INSTRUMENTS INC SETTLES PATENT DISPUTES WITH DELL AND DAEWOO DALLAS TEXAS INSTRUMENTS INC AND DELL COMPUTER CORP ENDED AN ACRIMONIOUS PATENT DISPUTE BY SIGNING CROSSLICENSING AGREEMENTS THAT CALL FOR DELL TO PAY TI ROYALTIES SEPARATELY TEXAS INSTRUMENTS SAID IT SETTLED SIMILAR PATENT LITIGATION WITH DAEWOO CORP SUBSIDIARIES DAEWOO ELECTRONICS CO AND DAEWOO TELECOM CO THE TERMS OF THE AGREEMENTS WEREN'T DISCLOSED BUT DELL OF AUSTIN TEXAS SAID THE ROYALTY PAYMENTS WHICH EXTEND THROUGH 1997 AREN'T MATERIAL TO ITS FINANCIAL RESULTS IN ITS NEWS RELEASE TEXAS INSTRUMENTS SAID IT RECEIVED FAIR VALUE FOR ITS TECHNOLOGY SPOKESMEN FOR DAEWOO BASED IN SOUTH KOREA COULDN'T BE REACHED FOR COMMENT TEXAS INSTRUMENTS WHICH HAS AGGRESSIVELY PURSUED ROYALTY INCOME FROM ITS PATENT PORTFOLIO FILED SUIT AGAINST DELL AND SEVERAL OTHER PC MAKERS ALLEGING THAT THEY HAD INFRINGED ON ITS PATENT COVERING THE WAY PERSONAL COMPUTER PROCESSING SYSTEMS INTERACT WITH INPUT/OUTPUT DEVICES SUCH AS PRINTERS DISPLAYS AND KEYBOARDS DELL COUNTERSUED ALLEGING THAT TI HAD VIOLATED FEDERAL ANTITRUST STATUTES AND ACCUSING THE BIG ELECTRONICS COMPANY OF FRAUD AND UNFAIR COMPETITION AS PART OF THE SETTLEMENT ALL LITIGATION BETWEEN THE DELL AND TI COMPANIES HAS BEEN DISMISSED TI NOTED THAT IT HAS PREVIOUSLY REACHED ROYALTY AGREEMENTS ON ITS PC SYSTEM PATENTS WITH SAMSUNG ELECTRONICS CO TANDY CORP WANG LABORATORIES INC AND ZENITH DATA SYSTEMS CORP A UNIT OF FRANCE'S GROUPE BULL 9303090125 930309 OTC FOCUS NASDAQ COMPOSITE RISES ON HIGHER BONDS AND A REBOUND IN TECHNOLOGY ISSUES BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHARPLY HIGHER BONDS TEAMED WITH REBOUNDING TECHNOLOGY ISSUES TO PUSH OVERTHECOUNTER STOCKS HIGHER THE BENCHMARK NASDAQ COMPOSITE INDEX ROSE 586 POINTS OR 086 TO 68723 WHILE THE NASDAQ 100 A REGISTER OF THE LARGEST NONFINANCIAL ISSUES SOARED 775 POINTS OR 1 TO 71888 THIS LOOKS LIKE A BLOWOFF TO ME SAID LESLIE SEFF HEAD OF NASDAQ TRADING AT WAGNER STOTT & CO IT COULD LEAD TO SOME PROFITTAKING DURING THE NEXT FEW SESSIONS A RALLYING BOND MARKET GAVE NASDAQ STOCKS AN INITIAL LIFT THE TREASURY'S LONG BOND WHICH FINISHED THE SESSION UP ABOUT 1/4 POINT OR 250 FOR A BOND WITH A 1000 FACE AMOUNT TO YIELD 672 HAD RISEN ALMOST ONE POINT DURING THE DAY BONDS WERE WEAKER ON FRIDAY IN THE WAKE OF A BETTERTHANEXPECTED UNEMPLOYMENT REPORT THE POWERFUL DEBT MARKET WAS ENOUGH TO TRIGGER A HEALTHY FLOW OF BUY ORDERS PARTICULARLY FOR TECHNOLOGY STOCKS THE MARKET'S USUAL LEADERS WHICH WERE BESIEGED BY SELLING PRESSURE IN PAST SESSIONS HELPED PUSH THE WIDER INDEXES DEEP INTO POSITIVE TERRITORY ADVANCING ISSUES OUTPACED DECLINERS 1507 TO 1143 THEIR GAINS WERE ECLIPSED HOWEVER BY ACTION ON THE NEW YORK STOCK EXCHANGE THERE EQUITIES ALSO TOOK THEIR INSPIRATION FROM BONDS WITH THE DOW JONES INDUSTRIAL AVERAGE SURGING 6484 POINTS OR 190 TO 346942 AND THE STANDARD & POOR'S 500 STOCK INDEX SURGED 860 POINTS OR 193 TO 45471 THE NASDAQ INDEXES KEYED OFF THE LISTED MARKET SAID JAIME DAVILA A SENIOR TRADER AT MABON SECURITIES CORP BUT OVERALL IT WAS A QUIET DAY HERE AMONG SHARES LISTED ON THE NATIONAL MARKET SYSTEM A MODEST 190 MILLION CHANGED HANDS ON FRIDAY 183 MILLION SHARES WERE TRADED THE OVERTHECOUNTER MARKET ISN'T EXPECTED TO FARE AS WELL LATER THIS WEEK TRADERS PREDICT THE BUY ORDERS WILL SUBSIDE AS PROFITTAKERS STEP IN WE MAY BE LOOKING AT A SLIGHT CORRECTION SAID THE MABON TRADER MCAFEE ASSOCIATES TUMBLED 1 3/8 TO 7 AFTER TWO OF THE SOFTWARE DEVELOPER'S UNDERWRITERS CUT THEIR 1993 EARNINGS FORECASTS ALEX BROWN PARED ITS EARNINGS OUTLOOK BY FIVE CENTS TO 68 CENTS A SHARE ROBERTSON STEPHENS & CO ALSO LOWERED ITS VIEW BY FIVE CENTS TO 70 CENTS A SHARE THE ANALYSTS SAID LICENSING REVENUE COULD FALL IN THE WAKE OF LIGHT PRODUCT DEMAND MCAFEE WHICH WENT PUBLIC LATE LAST YEAR SELLS ANTIVIRAL SOFTWARE BROOKTROUT TECHNOLOGY SLIPPED 3 1/4 TO 14 AFTER THE NEEDHAM MASS OFFICE PRODUCTS SUPPLIER SAID IT EXPERIENCED SLOWERTHANEXPECTED GROWTH IN PRODUCT SHIPMENTS IN ITS CUSTOMER PREMISES EQUIPMENT MARKET SEGMENT BROOKTROUT SAID IT EXPECTS REVENUE FOR THE FIRST QUARTER TO INCREASE ABOUT 40 FROM A YEAR EARLIER ALTHOUGH THE COMPANY ANTICIPATES EARNINGS TO BE IN LINE WITH CURRENT EXPECTATIONS HANCOCK INSTITUTIONAL EQUITY SERVICES SLASHED ITS INVESTMENT RATING TO HOLD FROM BUY YESTERDAY CITING A SLOWERTHANANTICIPATED START IN THE FIRST QUARTER TNT FREIGHTWAYS ROSE 3 3/4 TO 23 1/2 AFTER THE ROSEMONT ILL TRUCKER SAID IT AGREED TO BUY 36 MILLION OF ITS COMMON SHARES HELD BY TNT LTD OF AUSTRALIA FOR 19 A SHARE THE 70 MILLION STOCK PURCHASE REPRESENTS ABOUT 20 OF TNT FREIGHTWAYS' 144 MILLION SHARES OUTSTANDING NATIONAL WESTERN LIFE INSURANCE SHOT UP 4 1/2 TO 56 1/2 THE AUSTIN TEXAS INSURER REPORTED FOURTHQUARTER EARNINGS OF 202 MILLION OR 582 A SHARE COMPARED WITH YEAREARLIER PROFIT OF 112 MILLION OR 324 A SHARE QVC NETWORK SURGED 5 TO 55 3/4 THE HOME SHOPPING SATELLITE NETWORK RECORDED FOURTHQUARTER EARNINGS OF 42 CENTS A SHARE OR 188 MILLION COMPARED WITH YEAREARLIER PROFIT OF 25 CENTS A SHARE OR 9 MILLION YOUNKERS ADDED 1/2 TO 34 3/4 AFTER THE DEPARTMENT STORE CHAIN POSTED FOURTHQUARTER NET INCOME OF 222 A SHARE OR 151 MILLION LAST YEAR IT HAD EARNINGS OF 114 A SHARE OR 57 MILLION DURIRON SKIDDED 1 TO 23 1/4 THE DAYTON OHIO PUMP MANUFACTURER SAID FRIDAY THAT IT EXPECTS FIRSTQUARTER EARNINGS TO FALL BELOW FINANCIAL ANALYSTS' PROJECTIONS OF 34 CENTS TO 40 CENTS A SHARE THE COMPANY SAID FIRSTQUARTER NET INCOME SHOULD BE MARGINALLY LOWER THAN LAST YEAR'S THIRD QUARTER WHEN SALES OF 739 MILLION YIELDED EARNINGS OF 29 CENTS A SHARE US CAN CORP A NEW ISSUE CLOSED AT 12 THE OAK BROOK ILL STEEL CONTAINER MANUFACTURER'S 5550000 SHARES WERE PRICED AT 12 EACH OR AT THE LOW END OF THEIR EXPECTED PRICE RANGE SALOMON BROTHERS LED THE ISSUE'S UNDERWRITING TEAM 9303090124 930309 BARR LABORATORIES AND ICI SETTLE SUIT OVER PATENT FOR BREASTCANCER DRUG A WALL STREET JOURNAL NEWS ROUNDUP IMPERIAL CHEMICAL INDUSTRIES PLC AND BARR LABORATORIES INC HAVE REACHED AN OUTOFCOURT SETTLEMENT OF ICI'S PATENTINFRINGEMENT LAWSUIT OVER THE BREASTCANCER DRUG TAMOXIFEN CITRATE ICI A BRITISH CONCERN WHOSE US PHARMACEUTICAL BUSINESS IS IN WILMINGTON DEL SUED BARR PAMONA NY IN 1987 TO RETAIN PATENT RIGHTS OVER THE DRUG WHICH HAS UPWARD OF 250 MILLION IN ANNUAL SALES TO RESOLVE THE DISPUTE THE PARTIES HAVE AGREED TO DISMISS ALL CLAIMS RAISED IN THE ACTION AND HAVE ASKED THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT TO VACATE THE JUDGMENT OF THE US DISTRICT COURT IN MANHATTAN WHICH HAD FOUND THE PATENT UNENFORCEABLE ICI WAS IN THE PROCESS OF APPEALING THE DISTRICT COURT DECISION WHEN THE SETTLEMENT WAS REACHED IN AGREEING TO THE SETTLEMENT BARR HAS ACKNOWLEDGED THAT THERE WERE GENUINE ISSUES PRESENTED ON APPEAL AND RISKS OF LITIGATION BARR AND ICI ALSO AGREED THAT THERE WAS A SUBSTANTIAL POSSIBILITY THAT ICI'S US PATENT ON TAMOXIFEN CITRATE WOULD HAVE BEEN HELD VALID AND ENFORCEABLE UNDER TERMS OF THE SETTLEMENT A TOTAL CASH PAYMENT OF 21 MILLION WILL BE MADE TO BARR BARR WILL ENTER INTO A NONEXCLUSIVE DISTRIBUTORSHIP AGREEMENT WITH ZENECA INC THE US PHARMACEUTICAL AFFILIATE OF ICI AND BARR WILL BEGIN SELLING GENERIC TAMOXIFEN CITRATE AS OF NOV 1 THE TERMS ARE CONTINGENT ON THE VACATING OF THE JUDGMENT AND THE DISMISSAL OF THE CASE THE BARR TAMOXIFEN CITRATE PRODUCT WILL BE MANUFACTURED AT THE SAME FACILITY AS THE INNOVATOR'S PRODUCT 9303090123 930309 TECHNOLOGY & HEALTH GLAXO'S STOCK SKIDS IN LONDON IN WAKE OF ROW WITH FDA BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL GLAXO HOLDINGS PLC STOCK SKIDDED IN LONDON FOLLOWING A REPORT OF ITS ONGOING DISPUTE WITH THE FOOD AND DRUG ADMINISTRATION OVER ADVERTISING FOR ITS FLAGSHIP ULCER DRUG ZANTAC THE DISPUTE STEMS FROM A MIDJANUARY WARNING LETTER FROM THE FDA ALLEGING THE BRITISH COMPANY REPEATEDLY MADE FALSE AND MISLEADING STATEMENTS ABOUT ZANTAC AND PROMOTED CERTAIN UNAPPROVED USES FOR THE DRUG IN ADVERTISING AND PROMOTIONAL MATERIALS GLAXO INITIALLY DISPUTED THE ALLEGATIONS BUT SUBSEQUENTLY HAS BEEN COOPERATING WITH FDA OFFICIALS TO RESOLVE THE MATTER THE CASE WAS REPORTED IN INDUSTRY PUBLICATIONS LAST MONTH AN ARTICLE IN LONDON'S SUNDAY TIMES NEWSPAPER SPOOKED INVESTORS WHEN IT REPORTED THAT THE FDA THREATENED LEGAL ACTION THAT COULD LEAD TO PULLING ZANTAC OFF THE US MARKET THE SHARE PRICE OF GLAXO WHICH GETS 45 OF ITS REVENUE FROM ZANTAC PLUNGED 32 PENCE OR NEARLY 5 IN HECTIC LONDON TRADING YESTERDAY MORNING BEFORE CLOSING AT 652 PENCE 945 OFF EIGHT PENCE FOR THE DAY ABOUT 25 OF GLAXO SHARES ARE HELD BY US INVESTORS PETER LAING A LONDONBASED DRUG ANALYST FOR SOCIETE GENERALE STRAUSS TURNBULL SECURITIES CALLED THE FLAP OLD AND NOT VERY SIGNIFICANT NEWS AND MR LAING SCOFFED AT THE SUGGESTION THAT THE DISPUTE MIGHT CULMINATE IN ZANTAC BEING TAKEN OFF THE US MARKET THE FDA'S WARNING LETTER WAS SENT TO GLAXO JAN 13 IT CRITICIZED THE COMPANY'S ADVERTISING AND PROMOTION OF ZANTAC AS CONTAINING STATEMENTS SUGGESTIONS OR IMPLICATIONS THAT ARE FALSE AND/OR MISLEADING AND THAT PROMOTE UNAPPROVED USES OF ZANTAC FOR EXAMPLE THE AGENCY SAID THAT GLAXO HAD CLAIMED THAT ZANTAC IS EQUALLY EFFECTIVE IN SMOKERS AND NONSMOKERS EVEN THOUGH IT HASN'T PRESENTED DATA THAT SUPPORT THE CLAIM THE AGENCY ORDERED THE COMPANY TO CEASE IMMEDIATELY MAKING UNPROVED CLAIMS FOR THE DRUG AND TO PREPARE A DEAR DOCTOR LETTER TO BE PUBLISHED AS AN ADVERTISEMENT IN 12 MEDICAL JOURNALS CORRECTING ANY FALSE STATEMENTS ABOUT ZANTAC THAT GLAXO HAS MADE IN THE PAST 9303090122 930309 TECHNOLOGY & HEALTH HP GETS ITS FOOT IN BOEING'S DOOR WITH 2YEAR PACT BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE BOEING CO SAID IT CHOSE HEWLETTPACKARD CO TO SUPPLY THE INITIAL COMPUTER HARDWARE AND OPERATING SYSTEMS SOFTWARE TO BE USED TO MANUFACTURE BOEING'S FUTURE COMMERCIAL AIRPLANE LINES BOTH HP AND BOEING DECLINED TO SAY HOW MUCH THE TWOYEAR CONTRACT IS WORTH BUT OFFICIALS AT BOTH COMPANIES SAID THE CONTRACT WHICH INCLUDES AN OPTIONAL THIRD YEAR COULD GIVE HP A LEG UP AS A SUPPLIER TO WHAT WILL EVENTUALLY BECOME ONE OF THE LARGEST COMMERCIAL COMPUTER NETWORKS IN THE NATION UNTIL LAST YEAR BOEING RELIED ON LARGE MAINFRAME COMPUTERS WITH CUSTOMIZED SOFTWARE TO DESIGN AND BUILD ITS PLANES BUT BOEING IN A COSTCUTTING MOVE ELECTED TO FOLLOW MUCH OF THE REST OF US BUSINESS COMMUNITY TOWARD NETWORKS OF SMALLER MACHINES IN CONFIGURATIONS OFTEN KNOWN AS CLIENT SERVER SYSTEMS THE SYSTEM WILL USE HP'S VERSION OF THE UNIX OPERATING SOFTWARE AND WILL HELP TIE BOEING'S MAINFRAMES TO TENS OF THOUSANDS OF DESKTOP WORK STATIONS BOEING OFFICIALS SAID THAT ONCE THE SYSTEM IS FULLY OPERATIONAL IT IS EXPECTED TO SAVE SIGNIFICANT AMOUNTS OF CASH BOEING IS ALREADY A HUGE COMPUTER USER AND HP STANDS TO REAP SUBSTANTIAL BUSINESS FROM ITS CONTRACT IF IT REMAINS BOEING'S PRIMARY HARDWARE AND OPERATIONS SOFTWARE SUPPLIER HP OF PALO ALTO CALIF BEAT OUT TWO OTHER BOEING COMPUTER SUPPLIERS INTERNATIONAL BUSINESS MACHINES CORP AND SUN MICROSYSTEMS INC TO WIN THE INITIAL CONTRACT BOEING OFFICIALS WHO TOOK A YEAR TO PICK THE WINNER STRESSED THAT WHILE THE CONTRACT GIVES HP A HEAD START ON THE CURRENT HANDFUL OF MAKERS OF CLIENT SERVER SYSTEMS BY THE TIME BOEING'S SYSTEM IS IN PLACE THE FIELD SHOULD BE MORE CROWDED AND COMPETITION WILL BE MORE FIERCE OBVIOUSLY IF THEY DO A GOOD JOB AND THEY'RE IN THERE WORKING WITH US IT WON'T HURT THEM SAID A BOEING OFFICIAL WHO ASKED NOT TO BE IDENTIFIED AN HP OFFICIAL WHO ALSO ASKED NOT TO BE NAMED EXPRESSED SIMILAR OPTIMISM ONCE A COMPANY LIKE BOEING HAS MADE THAT KIND OF COMMITMENT THEY MOST LIKELY WOULD CONTINUE WITH THAT VENDOR HE SAID WHILE THE FINAL DIMENSIONS OF THE CONTRACT WITH HP ARE STILL BEING DISCUSSED BOEING ISN'T LIKELY TO EXTEND THE COMPUTER CHANGEOVER INTO ITS DESIGN OPERATIONS THE COMPANY HAS INVESTED HEAVILY FOR EXAMPLE IN A HUGE IBM MAINFRAME SYSTEM FOR ITS NEW 777 JETLINER OFFICIALS SAID THERE ARE NO PLANS TO DUMP THAT SYSTEM 9303090121 930309 RENO WILL FACE QUESTIONS FROM SENATE ABOUT ROLE OF CLINTON LIAISON HUBBELL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS CONFIRMATION HEARINGS FOR JANET RENO PRESIDENT CLINTON'S NOMINEE FOR ATTORNEY GENERAL BEGIN TODAY SOME OF THE ATTENTION WILL FALL ON A MAN WITH NO OFFICIAL POSITION AND AN UNCERTAIN AMOUNT OF POWER WEBSTER HUBBELL A FORMER MAYOR OF LITTLE ROCK ARK AND A FORMER LAW PARTNER OF HILLARY RODHAM CLINTON IS THE PRESIDENT'S LIAISON WITH THE JUSTICE DEPARTMENT WHICH IS BEING RUN BY STUART GERSON A BUSH ADMINISTRATION HOLDOVER DEPARTMENT OFFICIALS EXPECT MR HUBBELL TO REMAIN IN A TOP POSITION IN THE AGENCY AFTER A NEW ATTORNEY GENERAL TAKES OFFICE THE RECENT ACTIONS OF MR HUBBELL AND MR GERSON REGARDING THE TRIAL OF A DEMOCRATIC CONGRESSMAN HAS STIRRED INTEREST IN MR HUBBELL'S BEHINDTHESCENES ROLE AT THE AGENCY ALTHOUGH THE ISSUE ISN'T LIKELY TO CREATE ANY SERIOUS OBSTACLES TO MS RENO'S CONFIRMATION REPUBLICANS WILL TRY TO GET SOME POLITICAL MILEAGE OUT OF THE CONTROVERSY SEN CHARLES GRASSLEY R IOWA HAS PROMISED TO QUESTION MS RENO ON THE PART MR HUBBELL PLAYS IN SHAPING JUSTICE DEPARTMENT POLICY MESSRS HUBBELL AND GERSON MET WITH THE CONGRESSIONAL BLACK CAUCUS BEFORE MR GERSON DECIDED LAST MONTH TO SEEK A NEW JURY IN THE CORRUPTION TRAIL OF TENNESSEE REP HAROLD FORD THE JUDGE IN THE CASE DENIED THE REQUEST AND STRONGLY CRITICIZED MR GERSON'S ACTIONS AND SEN GRASSLEY SAID IN A STATEMENT THAT THE ACTIONS OF MESSRS GERSON AND HUBBELL CONSTITUTE POLITICAL CONDUCT OF THE JUSTICE DEPARTMENT MS RENO WILL TELL THE SENATOR THAT SHE HAS NO DIRECT KNOWLEDGE OF THE FORD AFFAIR BECAUSE SHE WASN'T IN THE DEPARTMENT AT THE TIME ACCORDING TO A LAWYER WHO HELPED HER PREPARE FOR THE JUDICIARY COMMITTEE HEARINGS SHE MET MR HUBBELL WHOM THENGOV CLINTON APPOINTED CHIEF JUSTICE OF THE ARKANSAS SUPREME COURT IN 1984 FOR THE FIRST TIME WHEN SHE CAME TO WASHINGTON FOR MR CLINTON'S ANNOUNCEMENT OF HER NOMINATION SAID ANOTHER ASSOCIATE SHE WAS VERY IMPRESSED WITH HUBBELL HE ADDED SEPARATELY DREW DAYS AN ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS DURING THE CARTER ADMINISTRATION HAS EMERGED AS THE LEADING CANDIDATE FOR SOLICITOR GENERAL WHILE HIS NOMINATION ISN'T CERTAIN THE APPOINTMENT OF THE YALE LAW SCHOOL PROFESSOR WOULD HELP THE PRESIDENT HONOR HIS DIVERSITY PLEDGE BY PLACING A BLACK PERSON IN A TOP DEPARTMENT POSITION THE SOLICITOR GENERAL IS THE GOVERNMENT'S MAIN LAWYER BEFORE THE SUPREME COURT AND HELPS SHAPE ADMINISTRATION POLICIES ON A VARIETY OF LEGAL ISSUES MR DAYS HAS SERVED IN THE PEACE CORPS AS A VOLUNTEER LAWYER FOR THE AMERICAN CIVIL LIBERTIES UNION AND ON INTERNATIONAL HUMAN RIGHTS FACTFINDING MISSIONS IN LOOKING AHEAD TO MS RENO'S CONFIRMATION HEARINGS SUPPORTERS OF THE MIAMI PROSECUTOR AND JUDICIARY COMMITTEE STAFFERS EXPECT HER TO HAVE LITTLE TROUBLE NEGOTIATING THE CONFIRMATION PROCESS CLINTON ADMINISTRATION AND CONGRESSIONAL OFFICIALS SAID A FEDERAL BUREAU OF INVESTIGATION BACKGROUND CHECK OF MS RENO TURNED UP NO INFORMATION THAT IS LIKELY TO TORPEDO HER NOMINATION SEVERAL PEOPLE REQUESTED PERMISSION TO TESTIFY AGAINST HER NOMINATION BUT NO REQUEST WAS GRANTED BY THE COMMITTEE THEY WILL BE ALLOWED TO SUBMIT THEIR COMMENTS IN WRITING THE CONSERVATIVE FREE CONGRESS FOUNDATION ISSUED A 12PAGE REPORT YESTERDAY SHARPLY CRITICAL OF MS RENO IT CITED HER LACK OF FEDERAL EXPERIENCE CRITICIZED HER PROSECUTION RECORD AND SAID SHE ABUSED THE GRAND JURY PROCESS TO FURTHER HER SOCIAL ACTIVISM ONE POLICY AREA THAT SENATORS PROBABLY WILL ASK ABOUT IS MS RENO'S POSITION ON THE DEATH PENALTY WHEN HER NOMINATION WAS ANNOUNCED SHE SAID I'M PERSONALLY OPPOSED TO THE DEATH PENALTY THEN SHE ADDED THAT WHEN THE EVIDENCE AND THE LAW JUSTIFY THE DEATH PENALTY I WILL ASK FOR IT AS I HAVE CONSISTENTLY AND I WILL ADVOCATE FOR IT AS THE LAW OF THE LAND IN PARTICULAR SITUATIONS IF WE CAN SECURE SUCH PENALTIES PRESIDENT CLINTON AND COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL SUPPORT PASSAGE OF A BROAD CRIME BILL THAT WOULD CREATE 53 NEW FEDERAL CAPITAL CRIMES IN PREPARING FOR HER HEARINGS MS RENO HAS MET WITH A VARIETY OF GROUPS CONCERNED WITH JUSTICE DEPARTMENT PROGRAMS INCLUDING THOSE REPRESENTING LAWENFORCEMENT OFFICIALS VICTIMS WOMEN AND AFRICANAMERICANS IN ORDER TO GET A SENSE OF THE QUESTIONS INDIVIDUAL SENATORS MIGHT ASK PEOPLE HELPING HER WITH THE CONFIRMATION PROCESS HAVE READ THE TRANSCRIPTS OF PREVIOUS CONFIRMATION HEARINGS FOR ATTORNEY GENERAL THE INTEREST OF SENATORS SEEM TO BE PRETTY CONSISTENT FROM YEAR TO YEAR SAID ONE LAWYER WHO READ THE TRANSCRIPT FOR THE WILLIAM BARR HEARING EVERYBODY HAS THEIR HOBBYHORSE THAT'S IN THE NATURE OF THE LEGISLATIVE CREATURE 9303090120 930309 INTERNATIONAL MEXICO'S RULING PRI FAMED FOR DIPS INTO STATE TILL SEEKS BUSINESS HANDOUTS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S NEWEST CANDIDATE FOR PRIVATIZATION APPEARS TO BE NONE OTHER THAN THE POLITICAL PARTY THAT HAS RULED MEXICO FOR MOST OF THIS CENTURY SINCE ITS FOUNDING SEVEN DECADES AGO THE INSTITUTIONAL REVOLUTIONARY PARTY OR PRI IN ITS SPANISH INITIALS HAS MAINTAINED ITS POWER CHOKEHOLD BY COOPTING DISSIDENTS BY OFTENCORRUPT ELECTIONS AND BY A STEADY ALBEIT SECRETIVE SOURCE OF STEADY FINANCING GOVERNMENT FUNDS EXACTLY HOW THE PRI HAS DRAWN ON GOVERNMENT RESOURCES OVER THE YEARS HAS ALWAYS BEEN A WELLGUARDED MYSTERY THAT A PARTY OFFICIAL LIKENS TO THE WAY THE SOVIET COMMUNIST PARTY DREW ON KREMLIN FUNDS NOW THE PRI SAYS IT MUST MODERNIZE ITS POLITICAL MACHINE WITH PRIVATE CAPITAL LED BY ANTONIO ORTIZ MENA A RETIRED BANKER AND CLOSE FRIEND OF PRESIDENT CARLOS SALINAS DE GORTARI THE PRI WANTS TO FORM SUPPORT BLOCS MADE UP OF THE COUNTRY'S BUSINESS EXECUTIVES WITH EACH BLOC EXPECTED TO COME UP WITH 25 MILLION OR MORE FROM THE PRIVATE SECTOR FOR THE PARTY'S COFFERS OR MORE OR LESS SAYS MR ORTIZ MENA FORMERLY A FINANCE MINISTER HERE A PARTY THAT MAINTAINS ITS FINANCES APART FROM THE GOVERNMENT WILL BE MORE INDEPENDENT AND HAVE MORE POPULAR SUPPORT TO MAKE THE POINT MR ORTIZ MENA HOSTED A DINNER LATE LAST MONTH AT HIS ARTABUNDANT HOME OVERLOOKING CHAPULTEPEC PARK THE MEXICAN CAPITAL'S VERSION OF OF NEW YORK CITY'S CENTRAL PARK IN WHAT IS NOW CALLED THE MILLIONAIRE'S BANQUET CHIEF EXECUTIVE OFFICERS FROM MANY OF MEXICO'S PUBLICLY TRADED COMPANIES DINED WHILE A PRI LEADER PITCHED FOR CONTRIBUTIONS AMONG THE 30 EXECUTIVES MEXICAN NEWSPAPERS REPORTED WERE HEADS OF SUCH COMPANIES AS GRUPO TELEVISA SA THE MEDIA MONOPOLY TELEFONOS DE MEXICO SA THE TELEPHONE MONOPOLY AND CEMENTOS DE MEXICO SA WHICH CALLS ITSELF THE WORLD'S FOURTHLARGEST CEMENT COMPANY THEIR ONLY GAIN IS THE SECURITY OF THEIR INVESTMENTS SAYS MR ORTIZ MENA IN A FRANK INTERVIEW IN WHICH HE ACKNOWLEDGED THE UMBILICAL CORD BETWEEN THE PRI AND THE GOVERNMENT BUT SUCH ROBUST FUND RAISING GIVES MANY PAUSE IN THIS DEVELOPING NATION OF POLARIZING POVERTY AND OPULENCE WE'RE IN SHOCK SAYS RAUL BRETON A SPOKESMAN FOR THE LEFTLEANING DEMOCRATIC REVOLUTION PARTY WHICH IS STILL STINGING FROM THE FRAUDMARRED 1988 PRESIDENTIAL ELECTION THAT IT CONTENDS IT WON EVERYONE HAS THE RIGHT TO FUND THEIR CAMPAIGNS THEIR PARTIES BUT WE ARE NEVER GOING TO GET 25 MILLION DONATIONS IN CIUDAD JUAREZ A GRITTY BORDER CITY IN A STATE GOVERNED BY THE CONSERVATIVE NATIONAL ACTION PARTY OR PAN ATTORNEY CARLOS ANGULO SAYS THE FUNDRAISING EFFORT BY THE RULING PARTY SHOWS THE CONCENTRATION OF WEALTH IN MEXICO THE PAN LAWYER ADDS LET'S HOPE THE GOVERNING PARTY DOESN'T WANT TO DOUBLEDIP AND CONTINUE TO PUT ITS HANDS IN THE STATE TREASURY LAST WEEK RILED PAN LEADERS WALKED OUT OF POLITICAL REFORM TALKS IN THE FEDERAL LEGISLATURE CALLING THEM A SHAM AFTER A MEXICO CITY FINANCIAL NEWSPAPER DISCLOSED DETAILS OF THE MILLIONAIRE'S BANQUET SAYS ALBERTO LOYOLA A PAN SPOKESMAN THEY ACCUSE US OF BEING CAPITALISTS IF OUR RICHEST PARTY MEMBER WERE ASKED FOR 25 MILLION HE'D GO BANKRUPT CAMPAIGN REFORM IS A PARTICULARLY PRICKLY ISSUE FOR THE PRI THE LONGESTREIGNING POLITICAL PARTY IN THE NONCOMMUNIST WORLD AND ELECTORAL SCRUTINY IS HIGH AS MEXICO SEEKS TO SOLIDIFY ITS ECONOMIC REFORMS WITH PASSAGE OF THE STILLUNRATIFIED NORTH AMERICAN FREE TRADE AGREEMENT PRI LEADERS SAY THEY DON'T WANT TO GO THE WAY OF THE SOVIET UNION WHERE POLITICAL REFORMS TOOK LIGHTNINGQUICK PRECEDENCE OVER ECONOMIC REFORMS AND THE UNION SHATTERED BUT PAT CHOATE A WASHINGTONBASED AUTHOR OF A BOOK ON JAPANESE TRADE POLITICS SAYS MEXICO SEEMS TO BE FOLLOWING THE MONEYDRIVEN POLITICAL PATH OF JAPAN WHOSE RULING PARTY HAS HELD POWER FOR NEARLY 40 YEARS WHAT THEY ARE SEEKING IS THE ILLUSION OF DEMOCRACY WITHOUT THE RISK OF DEMOCRACY SAYS MR CHOATE YOU'LL END UP WITH THE CARTELIZATION OF BUSINESS POWER THE PRI'S NEW FINANCING SCHEME ALSO HAS SOME RESONANCE WITH THE US WHILE INDIVIDUAL CONTRIBUTIONS TO FEDERAL CANDIDATES ARE LIMITED TO 1000 PER ELECTION SOFT MONEY CONTRIBUTIONS TO STATE PARTY ORGANIZATIONS ARE UNLIMITED AND US CORPORATIONS ARE ABUNDANT GIVERS NO US CORPORATION OR INDUSTRY CLUSTER THOUGH HAS MADE AS HEFTY A CONTRIBUTION AS THOSE SUGGESTED IN MEXICO MOREOVER PRESIDENT CLINTON IS PROPOSING THAT THE SOFT MONEY LOOPHOLE BE CLOSED TO REDUCE SPECIALINTEREST INFLUENCE IN LAST YEAR'S PRESIDENTIAL ELECTIONS THE REPUBLICAN NATIONAL COMMITTEE AND THE DEMOCRATIC NATIONAL COMMITTEE EACH RAISED ABOUT 30 MILLION IN SOFT MONEY ACCORDING TO COMMON CAUSE A PUBLICINTEREST GROUP THAT STUDIED FEDERAL ELECTION COMMISSION FILINGS 9303090119 930309 BUSINESS BRIEF COMPTRONIX SETTLES SHAREHOLDER CLAIMS REACHES RESTRUCTURING PACT WITH BANKS COMPTRONIX CORP SAID IT HAS SETTLED SHAREHOLDER LITIGATION AND REACHED A RESTRUCTURING ACCORD WITH ITS LENDERS TWO STEPS THAT WILL PUT THE SCANDALRIDDEN CONCERN ON FIRMER FOOTING GOING FORWARD THE COMPANY A CONTRACT MANUFACTURER OF ELECTRONICS PARTS BASED IN GUNTERSVILLE ALA SAID IT AGREED TO PAY SHAREHOLDERS 105 MILLION OF CONVERTIBLE PREFERRED STOCK AND 2 MILLION IN CASH TO RESOLVE CLAIMS THAT THE COMPANY OVERSTATED PROFIT FROM 1989 UNTIL LAST FALL WHEN THE SCHEME SURFACED THE NEW CONVERTIBLE SHARES WILL HAVE A DIVIDEND OF 6 AND BE CONVERTIBLE INTO COMMON AT 8 A SHARE ALSO AS PART OF THE SETTLEMENT THE COMPANY AGREED TO REDUCE THE CONVERSION PRICE ON ITS 675 CONVERTIBLE SUBORDINATED DEBT OUTSTANDING DUE 2002 TO 11625 A SHARE FROM 1775 A SHARE AND EXTENDED THE CALLPROTECTION PERIOD ON THE DEBT THREE YEARS TO APRIL 1 1998 THE SETTLEMENT IS SUBJECT TO APPROVAL BY A FEDERAL JUDGE IN ALABAMA YESTERDAY COMPTRONIX WAS QUOTED AT 350 DOWN 3125 CENTS IN HEAVY TRADING ON THE NATIONAL OVERTHECOUNTER MARKET AT THE SAME TIME COMPTRONIX SAID IT REACHED AN ACCORD WITH ITS BANKS THAT PROVIDES FOR A SLIGHT INCREASE IN ITS REVOLVING CREDIT FACILITY TO 2214 MILLION FROM 207 MILLION AS WELL AS A PACT WITH ITS TERM LENDERS TO CONTINUE THAT DEBT'S MATURITY IN 1998 WE'VE CLEARED AWAY SOME VERY SIGNIFICANT UNCERTAINTIES AND GOTTEN THE BREATHING ROOM AND SUPPORT FROM THE BANKS WE THINK WE NEED SAID E TOWNES DUNCAN COMPTRONIX'S INTERIM CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE'VE NOW GOT TO RUN THE BUSINESS MR DUNCAN SAID THE COMPANY'S BACKLOG REMAINS STABLE AT MORE THAN 100 MILLION HE REITERATED THAT THE COMPANY HAS BEEN ABLE TO PRESERVE GOOD RELATIONSHIPS WITH ITS CUSTOMERS AND ITS SUPPLIERS THROUGHOUT THE CRISIS THAT EMERGED LAST NOVEMBER WHEN ITS THENCHIEF EXECUTIVE OFFICER WILLIAM J HEBDING INFORMED THE BOARD THAT HE AND TWO OTHER TOP EXECUTIVES HAD SCHEMED TO INFLATE PROFITS FOR YEARS IN ADDITION HE SAID THE COMPANY HAS BEEN WORKING TO REDUCE ITS COSTS IMPROVE ITS USE OF ASSETS AND SHORE UP ITS BALANCE SHEET THE COMPANY WHICH EXPECTS TO REPORT ITS 1992 RESULTS BY THE END OF MARCH SAID THE LITIGATION SETTLEMENT AND INVESTIGATION COSTS WOULD WIDEN ITS PRETAX LOSS FOR 1992 PREVIOUSLY ESTIMATED AT 15 MILLION BUT DECLINED TO BE MORE SPECIFIC DANIEL BERGER AN ATTORNEY FOR SHAREHOLDERS SAID THE SHAREHOLDERS' SUIT WILL CONTINUE TO BE PRESSED AGAINST KPMG PEAT MARWICK THE FORMER AUDITOR FOR COMPTRONIX ITS UNDERWRITERS AND TWO TOP FORMER OFFICERS WHO ALLEGEDLY PERPETRATED THE FRAUD MR HEBDING AND ALLEN SHIFFLETT ITS FIRED PRESIDENT HE SAID THE SHAREHOLDERS SEPARATELY SETTLED RECENTLY WITH THE COMPANY'S FORMER TREASURERCONTROLLER PAUL MEDLIN FOR 100000 MR HEBDING'S ATTORNEY DECLINED TO COMMENT MR SHIFFLETT'S LAWYER COULDN'T BE REACHED PEAT MARWICK AND THE UNDERWRITERS HAVE PREVIOUSLY SAID THEY ARE INNOCENT PARTIES WHO WERE DUPED BY THE ELABORATE SCHEME 9303090118 930309 EPA PROPOSES A RULE TO AID STATE EFFORTS TO CURB AIR POLLUTION WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED A RULE DESIGNED TO BLOCK FEDERAL ACTIONS THAT WOULD UNDERMINE STATE EFFORTS TO REDUCE AIR POLLUTION THE SOCALLED CONFORMITY RULE ISSUED UNDER THE 1990 CLEAN AIR ACT COULD AFFECT AIRPORT CONSTRUCTION THE LEASING OF FEDERAL LAND AND FOREST AND FIELDBURNING BY FEDERAL LAND MANAGERS IT WOULDN'T AFFECT FEDERAL HIGHWAY AND TRANSIT ACTIVITIES WHICH WERE ADDRESSED IN AN EARLIER EPA PROPOSAL UNDER THE PROPOSED RULE EACH FEDERAL AGENCY WOULD BE RESPONSIBLE FOR MAKING SURE THAT ITS ACTIONS CONFORM WITH PLANS ADOPTED BY STATES TO MEET FEDERAL AIR QUALITY STANDARDS PREVIOUSLY FEDERAL LAW DIDN'T REQUIRE THE FEDERAL GOVERNMENT TO TAKE STATE ANTIPOLLUTION EFFORTS INTO ACCOUNT THE AGENCY DIDN'T SPELL OUT PRECISELY HOW THE FEDERAL GOVERNMENT WOULD ENFORCE THE NEW RULE INSTEAD IT SOLICITED PUBLIC COMMENT ON VARIOUS OPTIONS ACCORDING TO THE EPA THE PROPOSED RULE WOULD SUBJECT ABOUT 100 CURRENT FEDERAL ACTIONS TO AIRQUALITY ANALYSES 9303090117 930309 STEEL FIRMS PLAN NEW PRICE BOOST FOR 3RD QUARTER INCREASE WOULD AVERAGE 5 MIRROR OTHER INDUSTRIES' EFFORTS TO RAISE QUOTES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL DOMESTIC STEELMAKERS ARE PLANNING THEIR THIRD PRICE INCREASE IN AS MANY QUARTERS MIRRORING EFFORTS IN OTHER INDUSTRIES TO RAISE PRICES AS DEMAND FIRMS PITTSBURGHBASED USX CORP'S US STEEL AND CLEVELAND'S LTV CORP THE NATION'S LARGEST AND THIRDLARGEST PRODUCERS SAID THEY WOULD RAISE PRICES 20 A TON ON SHIPMENTS BEGINNING JULY 4 THE GIANTS WERE REACTING TO A SIMILAR INCREASE BY INLAND STEEL INDUSTRIES INC A SMALLER PRODUCER THE INCREASES ARE FOR HOTROLLED COLDROLLED AND COATEDSTEEL SHEET COLLECTIVELY THE INDUSTRY'S LARGEST PRODUCT USED IN CONSTRUCTION AND TO MAKE AUTOS AND APPLIANCES THE PLANNED STEEL PRICE INCREASE AVERAGING 5 FOLLOWS SUCCESSFUL EFFORTS FOR THE FIRST AND SECOND QUARTERS OF THIS YEAR IT'S THE LATEST EFFORT BY COMPANIES IN A VARIETY OF INDUSTRIES LUMBER PAPER LEATHER TOBACCO OIL AUTOS AND AIRLINES TO FIRM PRICES BECAUSE OF HIGHER DEMAND OR LOWER SUPPLY THE PRODUCERPRICE INDEX FOR CRUDE GOODS JUMPED 07 IN JANUARY WHILE THE INDEX CLIMBED 03 FOR SEMIFINISHED GOODS AND 02 FOR FINISHED GOODS STUART HOFFMAN CHIEF ECONOMIST FOR PNC BANK CORP SAID HE EXPECTS A BIG JUMP IN CRUDEGOODS PRICES FOR FEBRUARY WHICH WILL BE REPORTED FRIDAY YOU'RE GOING TO SEE A RISE IN THE PRICE OF INDUSTRIAL GOODS SAYS BERNARD LASHINKSY A CHICAGO ECONOMIST AFFILIATED WITH AUS CONSULTANTS HOWEVER HE SAID THE INCREASES ARE MERELY A RECOVERY OF PRICE CUTS IN 1991 AND 1992 MR LASHINKSY EXPECTS REAL INDUSTRIAL PRICES TO REMAIN BELOW 1989'S LEVELS THE PLANNED STEEL PRICE INCREASES TAKE ADVANTAGE OF PRELIMINARY VICTORIES IN TRADE CASES AGAINST FOREIGN PRODUCERS THE GOVERNMENT'S FINAL DECISION ON THE CASES WHICH HAVE KEPT MUCH IMPORTED STEEL FROM THE US MARKET IS DUE IN JUNE THE BIG STEELMAKERS ALSO HAVEN'T BEEN UNDERCUT BY MINIMILLS LATELY NUCOR CORP THE LARGEST MINIMILL HAS RAISED PRICES 40 A TON OR 15 SINCE THE BEGINNING OF DECEMBER BECAUSE OF RISING MATERIAL COSTS THE PRODUCERS ARE IN A GOOD POSITION TO ENFORCE THE INCREASE FOR THE THIRD QUARTER FOR WHICH THEY ARE ALREADY BOOKING ORDERS ORDERS HAVE SOARED TO AN IMPRESSIVE RATE OF 110 MILLION TONS ANNUALLY IN RECENT MONTHS UP FROM THE 82 MILLION TONS SHIPPED LAST YEAR WE'RE IN THE MIDST OF A VERY SHARP INCREASE IN PRICES SAYS PETER MARCUS AN ANALYST WITH PAINEWEBBER HE BELIEVES THAT EVEN WITHOUT THE THIRDQUARTER INCREASE SPOT PRICES FOR STEEL ARE SUFFICIENTLY HIGH TO MAKE PRODUCERS PROFITABLE THOUGH MOST WILL REMAIN IN THE RED FOR THE SECOND QUARTER IF THE NEW INCREASE HOLDS AVERAGE SPOT PRICES FOR STEEL WILL HAVE INCREASED 15 FROM JAN 1 HOWEVER THE LATEST PRICE INCREASE HAS RISKS US STEEL PRICES ARE NOW ABOVE PRICES IN GERMANY FOR THE FIRST TIME IN YEARS A DEVELOPMENT THAT COULD RAISE DEMAND FOR IMPORTS AND ATTRACT MORE COMPETN FROM DOMESTIC MINIMILLS WHILE ALLOWING BIG US PRODUCERS TO LOSE THEIR ZEAL FOR COST CUTTING STEELMAKERS ALSO COULD FIND THEIR PLANS UNRAVEL QUICKLY IF THEY CAN'T PERSUADE GENERAL MOTORS CORP AND FORD MOTOR CO TO ACCEPT HIGHER PRICES IN A NEW CONTRACT THAT SHOULD BE REACHED THIS SPRING 9303090116 930309 MEXICAN FIRM PLANS OFFERING MEXICO CITY CONSORCIO G GRUPO DINA SA MEXICO'S LARGEST MAKER OF TRUCKS AND BUSES PLANS A 175 MILLION GLOBAL INITIAL PUBLIC OFFERING AT THE END OF THIS MONTH AND WILL LIST ITS SHARES ON THE NEW YORK STOCK EXCHANGE ACCORDING TO US AND MEXICAN INVESTMENT BANKING SOURCES THE LISTING WOULD MAKE DINA THE FIFTH MEXICAN COMPANY TO BE LISTED ON THE BIG BOARD THE STOCK OFFERING WILL BE FOR ROUGHLY 20 OF THE COMPANY ONETHIRD OF THE PROCEEDS WILL GO TOWARD EXPANDING DINA'S BUS LINE WHILE ANOTHER THIRD WILL BE EARMARKED FOR CONSTRUCTION OF A TRUCKBODY SHOP OTHER PROCEEDS WILL HELP DEFRAY THE COSTS OF THE RECENT ACQUISITION OF AN ABANDONED RENAULT FACILITY ADJACENT TO THE COMPANY'S EXISTING PLANT NORTH OF MEXICO CITY BEAR STEARNS COS WILL LEADMANAGE THE ISSUE WITH SALOMON INC AND JP MORGAN PARTICIPATING THE ISSUE WILL BE DIVIDED IN EQUAL PARTS AMONG US EUROPEAN AND MEXICAN INVESTORS THE SOURCES SAID PROBURSA SA WILL LEAD THE MEXICAN PART OF THE ISSUE 9303090115 930309 RESTRICTED VOTING BY HOUSE DELEGATES IS BACKED BY COURT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE UPHELD A DEMOCRATICBACKED RULES CHANGE GIVING DELEGATES TO CONGRESS LIMITED VOTING PRIVILEGES ON THE HOUSE FLOOR THE HOUSE MAY ACT UNILATERALLY TO FIX THE ROLE DELEGATES PLAY IN THE OPERATION OF THIS CHAMBER SAID JUDGE HAROLD GREENE IN REJECTING THE SUIT BROUGHT BY REPUBLICANS HE SAID THAT THE HOUSE LEADERSHIP WOULD HAVE VIOLATED THE CONSTITUTION IF IT HAD GIVEN THE DELEGATES AN UNFETTERED VOTE ON LEGISLATION BUT THAT THE COMPROMISE ADOPTED WAS SUFFICIENTLY RESTRICTED TO AVERT THE PROBLEM REPUBLICAN LEADER ROBERT MICHEL CLAIMED AT LEAST A LIMITED VICTORY NOTING JUDGE GREENE'S CAUTION THAT A FULL VOTE WOULD BE UNCONSTITUTIONAL BUT THE RULING NONETHELESS PRESERVES A CHANGE THAT THE MINORITY HAD BITTERLY PROTESTED AS A POWER GRAB BY DEMOCRATS AFTER NOVEMBER'S ELECTION DELEGATES FROM THE DISTRICT OF COLUMBIA GUAM VIRGIN ISLANDS AND AMERICAN SAMOA AND THE RESIDENT COMMISSIONER FROM PUERTO RICO HAVE LONG HAD THE POWER TO VOTE WITHIN HOUSE COMMITTEES FLOOR PRIVILEGES ARE MORE CLOSELY GUARDED HOWEVER BECAUSE THEY REPRESENT THE FINAL WORD ON LEGISLATION IN ONE SENSE THE COMPROMISE ENGINEERED BY DEMOCRATS STILL PRESERVES THIS DISTINCTION BECAUSE IT GIVES THE FIVE REPRESENTATIVES A VOTE ONLY IN THE SOCALLED COMMITTEE OF THE WHOLE OR THE PERIOD OF FLOOR DEBATE BEFORE A BILL IS REPORTED BACK TO THE FULL CHAMBER FOR FINAL ACTION AND IN ANY ROLL CALL WHEN THE FIVE DELEGATES ALL DEMOCRATS IN THIS CONGRESS PROVE DECISIVE THE RULE ENSURES AN IMMEDIATE SECOND VOTE IN WHICH THEY MAY NOT PARTICIPATE THIS LAST PROVISION DUBBED THE SAVINGS CLAUSE APPEARS TO HAVE BEEN JUST THAT FOR JUDGE GREENE WHO CONCLUDED THAT THE HOUSE TOOK AWAY WHAT HAD BEEN GIVEN IN THE INITIAL EXPANSION OF THE DELEGATES' VOTING PRIVILEGES WHILE THE ACTION OF THE HOUSE UNDOUBTEDLY GAVE THE DELEGATES GREATER STATURE IN CONGRESS AND IN THEIR HOME STATES THE JUDGE SAID IT DID NOT ENHANCE THEIR RIGHT TO VOTE ON LEGISLATION IN A DEMOCRATIC SYSTEM THE RIGHT TO VOTE IS GENUINE AND EFFECTIVE ONLY WHEN UNDER THE GOVERNING RULES THERE IS A CHANCE LARGE OR SMALL THAT SOONER OR LATER THE VOTE WILL AFFECT THE ULTIMATE RESULT THE VOTES OF THE DELEGATES IN THE COMMITTEE OF THE WHOLE CANNOT ACHIEVE THAT THE JUDGE SAID ELEANOR HOLMES NORTON THE DISTRICT OF COLUMBIA'S DELEGATE HAILED THE RULING AS A QUANTUM LEAP FORWARD BUT THE DECISION COMING FROM A JUDGE APPOINTED IN THE DEMOCRATIC YEARS OF THE CARTER ADMINISTRATION RAISES MAJOR LEGAL IMPEDIMENTS TO THOSE WHO HAD WANTED TO GO MUCH FURTHER IF THE ONLY ACTION OF THE HOUSE HAD BEEN TO GIVE THE DELEGATES AUTHORITY TO VOTE IN THE COMMITTEE OF THE WHOLE JUDGE GREENE SAID THAT THE ACTION WOULD HAVE BEEN PLAINLY UNCONSTITUTIONAL WHATEVER THE PARLIAMENATRY FINE POINTS SURROUNDING THAT PART OF FLOOR DEBATE IN VIEW OF THE CENTRAL PLACE OCCUPIED BY THE COMMITTEE OF THE WHOLE IN THE LEGISLATIVE PROCESS HE SAID SUCH A GRANT OF AUTHORITY WOULD HAVE IMPROPERLY GIVEN TO THOSE TERRITORIAL OFFICIALS LEGISLATIVE POWER A POWER WHICH UNDER ARTICLE I OF THE CONSTITUTION IS RESERVED TO MEMBERS OF CONGRESS ELECT BY THE PEOPLE OF THE SEVERAL STATES 9303090114 930309 LAW LEGAL BEAT TRUSTEES MAY BE LIABLE FOR COSTS OF POLLUTION CLEANUP JUDGE SAYS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL LENDERS ARE BREATHING EASIER ABOUT ENVIRONMENTAL CLEANUP COSTS BUT NOW TRUSTEES HAVE CAUSE TO BE WORRIED A RECENT ENVIRONMENTAL PROTECTION AGENCY RULE DESIGNED TO SHIELD BANKS FROM LIABILITY FOR ENVIRONMENTAL CLEANUPS HAS RESULTED IN THREE DECISIONS THIS YEAR THAT GIVE COMFORT TO LENDERS BUT IN A CLOSELY WATCHED CASE IN PHOENIX A FEDERAL COURT THREW COLD WATER ON THE BANKING COMMUNITY'S CELEBRATION BY RAISING THE POSSIBILITY THAT TRUSTEES A ROLE IN WHICH BANKS OFTEN FIND THEMSELVES MAY BE LIABLE FOR POLLUTION CLEANUP COSTS TRUSTEES EITHER INDIVIDUALS OR INSTITUTIONS ARE GIVEN THE POWER TO HOLD PROPERTY FOR THE BENEFIT OF SOMEONE ELSE SUCH AS THE BENEFICIARY OF A WILL THE EPA RULE WHICH BECAME EFFECTIVE IN APRIL SAYS BANKS AND OTHER LENDERS AREN'T LIABLE FOR CLEANUP COSTS OF PROPERTY ON WHICH THEY HAVE A SECURED INTEREST UNLESS THEY EXERCISED A GREAT DEAL OF CONTROL OVER HOW THAT PROPERTY WAS OPERATED BANKS HAD LOBBIED HARD FOR THE EPA RULE BECAUSE THEY FEARED THEY WOULD BE FORCED TO PAY TO CLEAN UP PROPERTY POLLUTED BY BORROWERS UNDER THE FEDERAL SUPERFUND LAW ANYONE LINKED TO A POLLUTION SITE CAN BE HELD LIABLE FOR THE ENTIRE CLEANUP TAB THE BANKS' LOBBYING EFFORTS INTENSIFIED AFTER AN APPEALS COURT RULED IN 1990 THAT FLEET FACTORS INC A UNIT OF FLEET FINANCIAL GROUP INC PROVIDENCE RI WAS LIABLE FOR CLEANUP COSTS OF PROPERTY OWNED BY A BORROWER BUT COURT DECISIONS HANDED DOWN SINCE JANUARY HAVE DONE MUCH TO LESSEN THE BANKS' ANXIETY IN ONE RECENT MICHIGAN CASE A FEDERAL JUDGE RULED THAT A BANK WHICH APPOINTED TWO MEMBERS TO A BORROWER'S BOARD DIDN'T HAVE THE CONTROL NECESSARY UNDER THE EPA RULE TO MAKE IT LIABLE FOR CLEANUP COSTS A JUDGE IN MINNESOTA RULED THAT A LENDER THAT HELPED SELL A POLLUTED SITE ON WHICH IT HAD FORECLOSED WASN'T LIABLE AND A FEDERAL APPEALS COURT IN BOSTON RULED THAT A LENDER THAT WAITED ALMOST ONE YEAR BEFORE SELLING A SITE ON WHICH IT FORECLOSED WAS CLEARED OF ANY POLLUTION LIABILITY NEVERTHELESS THE FLEET FACTORS CASE IS STILL MAKING THE LAW UNCERTAIN SAYS STANLEY M SPRACKER A LAWYER AT WEIL GOTSHAL & MANGES AFTER A NEW TRIAL IN THE CASE HELD IN LIGHT OF THE EPA POLICY FEDERAL JUDGE DUDLEY H BOWEN JR RULED LAST MONTH THAT FLEET WAS STILL LIABLE FOR 1 MILLION IN CLEANUP COSTS JUDGE BOWEN OF ATLANTA HAS NOT YET ISSUED A WRITTEN OPINION EXPLAINING THE RULING SO IT'S TOO EARLY TO TELL IF HIS DECISION WILL UNDERMINE THE NEW EPA RULE SAID WILLIAM BROWNER SENIOR COUNSEL FOR FLEET FINANCIAL HE SAID FLEET HASN'T DECIDED WHETHER TO APPEAL WHILE BANKS APPEAR TO BE GETTING THEIR WAY IN MOST CASES TRUSTEES NOW HAVE REASON TO WORRY ENVIRONMENTAL LAWYERS SAY THE GREATEST CONFUSION NOW IS NOT FOR THE LENDERS BUT FOR THE TRUST DEPARTMENTS SAYS RONALD WEAVER AN ENVIRONMENTAL LAWYER AT STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERSON IN TAMPA FLA IN A DECISION THAT'S BEING CLOSELY READ JUDGE SAMUEL CONTI OF PHOENIX RULED THAT VALLEY NATIONAL BANK OF ARIZONA COULD BE HELD LIABLE FOR THE COST OF CLEANING UP A LANDFILL THAT IS PART OF AN ESTATE FOR WHICH THE BANK WAS THE TRUSTEE JUDGE CONTI REFUSED TO APPLY THE NEW EPA RULE TO VALLEY NATIONAL BANK BECAUSE IT WAS A TRUSTEE AND NOT A LENDER IT MAY SEEM UNJUST TO SUBJECT TRUSTEES THAT ARE NOT INVOLVED IN THE CONTAMINATION OF THE PROPERTY TO LIABILITY FOR CLEANUP THAT MAY FAR EXCEED THE TRUST'S ASSETS JUDGE CONTI WROTE BUT HE ADDED THAT IF CONGRESS WANTED TRUSTEES EXEMPTED FROM THE SUPERFUND LAW LEGISLATORS WOULD HAVE MADE THAT CLEAR STEVE ROMAN SENIOR VICE PRESIDENT FOR VALLEY NATIONAL BANK A UNIT OF PHOENIXBASED VALLEY NATIONAL CORP SAID HE COULDN'T COMMENT ON THE RULING BECAUSE THE MATTER IS STILL IN LITIGATION TRUSTEES MAY HAVE TO START CHANGING THE WAY THEY DO BUSINESS AS A RESULT OF THE RULING HOWARD B EPSTEIN AN ATTORNEY AT LORD DAY & LORD BARRETT SMITH SAID THAT TRUSTEES SHOULD START ASKING QUESTIONS ABOUT POTENTIAL ENVIRONMENTAL PROBLEMS OF PROPERTY OVER WHICH THEY ARE GIVEN CONTROL IN SEPARATE LEGAL ACTIONS AGAINST HIS FORMER MANAGER AND HIS FORMER ATTORNEYS SINGER BILLY JOEL CLAIMED ONE RECENT VICTORY IN COURT AND ONE LOSS ON FEB 25 ACTING JUSTICE EDWARD H LEHNER OF NEW YORK SUPREME COURT AWARDED MR JOEL 67567068 PLUS INTEREST IN DAMAGES FROM HIS FORMER MANAGER FRANCIS X WEBER MR JOEL SUED MR WEBER IN 1989 FOR FRAUD AND BREACH OF FIDUCIARY DUTY AND WON A JUDGMENT OF 2 MILLION AFTER THE SINGER COLLECTED ABOUT HALF OF THAT MONEY MR WEBER DECLARED BANKRUPTCY SAID LEONARD MARKS AN ATTORNEY FOR MR JOEL SUBSEQUENTLY MR WEBER RECEIVED MONEY BACK FROM SEVERAL REALESTATE INVESTMENTS IN WHICH HE HAD INVESTED MR JOEL'S MONEY AND MR JOEL'S LAWYERS AMENDED THEIR COMPLAINT TO INCLUDE FRAUD OVER THE WITHHOLDING OF THAT MONEY IN HIS RULING JUDGE LEHNER SAID THE COURT CONCLUDES THAT DEFENDANTS INTENDED TO INTERFERE AND DID IN FACT INTERFERE WITH JOEL'S LEGAL RIGHT TO HIS SHARE OF THE PARTNERSHIP DISTRIBUTIONS THE JUDGE RULED THAT THE CASE MUST CONTINUE ON MR JOEL'S OTHER EARLIER CLAIMS OF FRAUD AND BREACH OF FIDUCIARY DUTY STATING THAT THERE ARE STILL QUESTIONS OF FACT TO BE DECIDED MR WEBER'S ATTORNEY ANTHONY CONFORTI SAID OF THE DECISION WE BELIEVE THE JUDGE IGNORED AN AGREEMENT WE FILED THAT SHOWED THE TENOR OF THE RELATION BETWEEN MESSRS WEBER AND JOEL AND WE PLAN TO APPEAL IN A SEPARATE DECISION BY JUDGE LEHNER LAST FRIDAY MR JOEL LOST HIS BID TO COMBINE THE CASE AGAINST MR WEBER WITH ONE FILED THIS PAST SEPTEMBER AGAINST MR JOEL'S FORMER LAWYERS ALLEN GRUBMAN AND ARTHUR INDURSKY MR JOEL ARGUED THE TWO CASES SHOULD BE COMBINED BECAUSE THEY ALLEGE MESSRS GRUBMAN AND INDURSKY KNEW THAT MR WEBER WAS CHEATING MR JOEL BUT DIDN'T INFORM THEIR CLIENT BERTRAM FIELDS A LAWYER FOR MESSRS GRUBMAN AND INDURSKY SAID WE'RE DELIGHTED THE MOTION TO COMBINE THE CASES WAS DENIED PHILADELPHIA MOVE WILLIAM L LEONARD FORMER VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL OF BELL ATLANTIC CORP HAS BECOME MANAGING PARTNER OF SCHNADER HARRISON SEGAL & LEWIS IN PHILADELPHIA PRIOR TO HIS RECENT RETIREMENT FROM BELL ATLANTIC MR LEONARD HAD WORKED PARTTIME AT THE COMPANY AND SCHNADER HARRISON AS MANAGING PARTNER MR LEONARD IS EXPECTED TO ASSUME RESPONSIBILITY FOR CLIENT DEVELOPMENT HIRING TRAINING AND RECRUITING MEG COX CONTRIBUTED TO THIS COLUMN 9303090113 930309 PEPPERAND SALT WHEN THESE PEOPLE CAME BUT FORCING HIM OFF THE PREMISES 9303090112 930309 LETTERS TO THE EDITOR EQUAL MISERY MAKES THE MISERABLE MERRIER REGARDING ROBERT J BARRO'S INEQUALITY AND ITS CHARMS EDITORIAL PAGE FEB 10 MR BARRO IS AN ECONOMIST A STUDENT OF THE MATERIAL MEANS OF SATISFYING HUMAN WANTS SOME PEOPLE THINK THAT ECONOMICS IS A STUDY OF HOW HUMANS ACT IN CONDITIONS OF SCARCITY BUT THERE ARE MORE THINGS IN HEAVEN AND EARTH THAN ARE FOUND IN HIS PHILOSOPHY HE STATES THIS SOAKING OF THE RICH WOULD NOT BENEFIT THE POOR UNLESS THE POOR WOULD FEEL BETTER SIMPLY BECAUSE THE RICH WERE WORSE OFF I PRESUME HOWEVER THAT ONE GROUP'S ENJOYMENT OF ANOTHER GROUP'S MISERY IS NOT WHAT UNDERLIES MR CLINTON'S VISION OF SHARED SACRIFICES HE PRESUMES TOO MUCH DOES HE KNOW THAT THERE ARE MULTITUDES WHO PREFER THE EQUALITY OF MISERY TO THE INEQUALITY OF ABUNDANCE THAT MISERY LOVES COMPANY IN THE US TODAY THE SOLE MEASURE OF WEALTH IS RELATIVE I AM WEALTHY IF I HAVE MORE THAN YOU YOU ARE IN POVERTY IF YOU HAVE LESS THAN I THE PEOPLE CRY FOR EQUALITY FAIRNESS SHARING OF WHATEVER THERE IS MISERY OR PLENTY THEY DO NOT CRY FOR MORE THEY ARE SATED ALREADY 9303090111 930309 WHO'S NEWS SIMON & SCHUSTER'S MCKEOWN IS HIRED FOR HARPERCOLLINS POST NEW YORK JACK MCKEOWN A SENIOR EXECUTIVE AT SIMON & SCHUSTER HAS BEEN HIRED FOR A TOP MARKETING POST AT RIVAL HARPERCOLLINS PUBLISHERS MR MCKEOWN 40 YEARS OLD CURRENTLY IS SENIOR VICE PRESIDENT AND DIRECTOR OF PUBLISHING OPERATIONS FOR ADULT CONSUMER BOOKS AT SIMON & SCHUSTER A DIVISION OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PUBLISHING AS OF MARCH 29 MR MCKEOWN WILL BECOME VICE PRESIDENT AND DEPUTY PUBLISHER OF ADULT CONSUMER BOOKS AT HARPERCOLLINS A NEW POST AT HARPERCOLLINS MR MCKEOWN WILL BE RESPONSIBLE FOR CONSIDERABLY MORE BOOK TITLES AND STAFF THAN AT SIMON & SCHUSTER AND HIS MANDATE WILL INCLUDE THE MARKETING OF HIGHQUALITY PAPERBACK BOOKS AND REFERENCE BOOKS HARPERCOLLINS IS A UNIT OF NEWS CORP DURING HIS TENURE AT SIMON & SCHUSTER MR MCKEOWN WAS KNOWN FOR AGGRESSIVE AND INNOVATIVE MARKETING PLANS USING TACTICS SUCH AS INFOMERCIALS THAT HAVEN'T TRADITIONALLY BEEN USED BY PUBLISHERS THROUGH INFORMERCIALS AND SPECIAL SEMINARS FOR EXAMPLE MR MCKEOWN MADE HOWTO BOOKS BY AUTHORS STEVEN COVEY THE SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE AND ANTHONY ROBINS AWAKEN THE GIANT WITHIN INTO MAJOR BESTSELLERS 9303090110 930309 HEARD ON THE STREET BIOTECH GROUP MAY BE APPEALING BUT INVESTORS SHOULD USE CAUTION SOME MARKET PROS WARN BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL SAY BARGAIN HUNTERS ARE YOU TEMPTED BY THIS YEAR'S 38 PLUNGE IN THE BIOTECHNOLOGY STOCK GROUP OF THE DOW JONES EQUITY MARKET INDEX RELAX YOU'VE GOT AMPLE TIME TO PICK THROUGH THE BIOTECH DEBRIS MARKET VETERANS SAY THIS GROUP ISN'T GOING TO THE MOON ANY TIME SOON THREE STOCKS IN THE GROUP HAVE SURFACED FROM THE WRECKAGE AND HAVE WON SOME KIND WORDS FROM ANALYSTS CHIRON GENZYME AND BIOGEN BUT DON'T TELL YOUR MOM TO JUMP IN THERE ARE SEVERAL REASONS TO BE WARY ONE IS THE BIOTECHDUMPING BEHAVIOR OF MANY MUTUAL FUNDS IN THE WAKE OF RECENT DISAPPOINTING NEWS FROM INDUSTRY LEADERS SYNERGEN AND AMGEN AND BIOTECHONLY MUTUAL FUNDS ARE SHRINKING REDUCING THEIR BUYING POWER AT FIDELITY'S SELECT BIOTECH FUND ASSETS HAVE SLUMPED 34 SINCE THE END OF THE YEAR TO AROUND 526 MILLION A GUY CALLED ME AND SAID HE HAD TO SELL HIS HOUSE BECAUSE HE LOST SO MUCH MONEY ON SYNERGEN SAYS EVAN STURZA PRESIDENT OF STURZA'S MEDICAL INVESTMENT LETTER ON FEB 22 SYNERGEN LOST 710 MILLION IN MARKET VALUE AFTER ANNOUNCING WEAKERTHANEXPECTED RESULTS OF ITS MAIN DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION THE STOCK NOW AT 14 5/8 HAS EDGED UP FROM A 52WEEK LOW OF 12 3/4 THERE IS REALLY NO NEW MONEY GOING IN TO THE BIOTECH GROUP SAYS ANNE ANDERSON PRESIDENT OF ATLANTIS INVESTMENT A GROWTHSTOCK RESEARCH CONCERN MONEY MANAGERS ARE JUST SWAPPING STOCKS WHAT YOU'RE SEEING IS BIOTECH INVESTORS WHO HAVE TO BUY SOMETHING AND BIOTECH ANALYSTS WHO HAVE TO RATE SOME STOCKS A BUY ANALYSTS ARE PRAISING NASDAQTRADED CHIRON GENZYME AND BIOGEN BECAUSE THEY SAY ALL THREE HAVE SOLID NEARTERM EARNINGS POTENTIAL MORE THAN ONE REVENUEPRODUCING DRUG AND PROMISING NEWPRODUCT PIPELINES KING FOR A DAY IS CHIRON OF EMERYVILLE CALIF NOW AT THE TOP OF SEVERAL ANALYSTS' RECOMMENDED LISTS WHILE MANY OTHER BIOTECH STOCKS LANGUISH CHIRON IS AT 51 VS A 52WEEK LOW OF 34 3/4 AND A HIGH OF 63 A LOT OF INVESTORS BURNT BY SINGLECONCEPT' STOCKS ARE POURING MONEY INTO CHIRON SAYS SARAH GORDON WILD OF AMERINDO INVESTMENT ADVISORS WHO RECENTLY BOUGHT SHARES IN THE 40S YET SHE SAYS NO ONE BIG PIECE OF NEWS GOOD OR BAD WILL MAKE OR BREAK THE STOCK INVESTORS ARE KEENLY AWAITING THE COMPANY'S MARCH 19 PRESENTATION TO A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL OF DATA ON BETASERON FOR MULTIPLE SCLEROSIS IF ALL GOES WELL ANALYSTS SAY BETASERON COULD BE LAUNCHED IN THE SECOND HALF BUT ALTHOUGH MERRILL LYNCH ANALYST STUART WEISBROD HAS A LONGTERM BUY ON CHIRON HE CALLS IT FULLY VALUED IN THE SHORT TERM THE STOCK TRADES AT 57 TIMES HIS 1993 EARNINGS ESTIMATE OF 90 CENTS A SHARE CYNICS SAY IT'S BETTER TO HAVE MISSED LAST WEEK'S 46 GAIN IN THE STOCK THAN TO RISK A 20 THRASHING IF THE DRUG IS DISAPPOINTING MR WEISBROD PICKS GENZYME AS HIS NO 1 BIOTECH RECOMMENDATION THE STOCK AT 31 3/4 TRADES AT ONLY 16 TIMES HIS 1993 PROFIT ESTIMATE OF 195 A SHARE GENZYME'S CURRENT REVENUE GROWTH COMES LARGELY FROM CEREDASE A TREATMENT FOR GAUCHER'S DISEASE A POTENTIALLY FATAL ENZYME DISORDER THE COMPANY ALSO MARKETS DIAGNOSTIC SERVICES AND HAS SEVERAL PRODUCTS IN LATE STAGES OF DEVELOPMENT AS FOR BIOGEN ANALYSTS SAY THE COMPANY HAS A SOLID ROYALTY REVENUE BASE FROM SALES OF ITS ALPHA INTERFERON INTRON A LICENSED TO SCHERINGPLOUGH AND YAMANOUCHI AND FROM SALES OF ITS HEPATITIS B VACCINES BY SMITHKLINE BEECHAM MERCK AND OTHERS BUT ANALYSTS' CURRENTYEAR ESTIMATES RANGE FROM 87 CENTS A SHARE TO 115 A WIDE GAP BECAUSE THEY ARE UNCERTAIN ABOUT 1993'S PERFORMANCE AS THESE PRODUCTS COME UNDER INCREASING COMPETITIVE PRESSURE IN 1992 THE CAMBRIDGE MASS COMPANY EARNED 112 A SHARE THE STOCK YESTERDAY EASED 1/4 TO 31 DON'T GET LURED INTO DAYTODAY TRADING OF BIOTECH STOCKS WHICH GET PUSHED AROUND BY BIG INVESTORS THE PROS WARN LAST WEEK THE SAME INSTITUTIONAL CLIENT BOUGHT AND SOLD AMGEN FOUR TIMES IN FOUR DAYS SAYS GREG RILEY A SENIOR OVERTHECOUNTER STOCK TRADER AT FIRST BOSTON HE ADDS INVESTORS ARE VERY CONFUSED AND THERE ISN'T MUCH THEY CAN DO BECAUSE BIOTECH IS GOING TO BE DEAD FOR A WHILE IF YOU'RE LOOKING AT BIOTECH YOU HAVE TO STOMACH THE FACT THAT THERE IS A LOT OF CHANGE TAKING PLACE IN THE OVERALL INDUSTRY SAYS AMERINDO'S MS GORDON WILD IF YOU INSIST ON BUYING BIOTECH STOCKS YOU NEED A LEADER TYPE OF COMPANY SUCH AS CHIRON GENZYME BIOGEN AND MAYBE EVEN AMGEN NOW AT 33 AND THEN SOME SMALLER COMPANIES IF THE GROUP MANAGES TO GET OUT OF THE SICKBED SHE SAYS TWO OR THREE OF YOUR STOCKS WILL BE A GOOD INVESTMENT 9303090109 930309 LETTERS TO THE EDITOR LOUSY CONDITIONS BETTER PROFITS WE ARE INDEBTED TO YOUR FEB 4 EDITORIAL FOR PUTTING THE ISSUE OF SOCIAL DUMPING STRAIGHT UP WITHOUT ANY SUGAR COATING ACCORDING TO YOU THE SOCIAL CHARTER IS EFFECTIVELY PROTECTIONISM BECAUSE IT SEEKS TO ENSHRINE COMMON MINIMUM WORKER RIGHTS THROUGHOUT THE EUROPEAN COMMUNITY MINIMUM WAGES AND MAXIMUM WORKING HOURS WORKER PARTICIPATION IN MANAGEMENT ON THE GERMAN MODEL ON SUCH BASIC DECISIONS AS PLANT CLOSINGS SUCH MINIMUM STANDARDS ARE WRONG YOU SAY BECAUSE THEY REDUCE THE TENDENCY OF NATIONS TO COMPETE WITH EACH OTHER ON THE BASIS OF WHAT THEY CAN OFFER INVESTORS AS THEY SHOULD IN ANY MARKET FEDERATION ACCORDING TO THIS LOGIC NATIONS SHOULD COMPETE ON THE BASIS OF WHO CAN OFFER THE MOST RETROGRADE SOCIAL CONDITIONS THAT MAXIMIZE PROFITS FOR THE INVESTOR THE STATE WITHOUT MINIMUM WAGE AND MAXIMUM HOURS LIMITS WITH NO CHILD LABOR STANDARDS WHICH CONSTRAINS THE ORGANIZATION OF INDEPENDENT TRADE UNIONS AND INTIMIDATES TOUGH UNION NEGOTIATORS THAT STATE PRESUMABLY HAS A NATURAL COMPETITIVE ADVANTAGE THERE IS HOWEVER A DIFFERENCE BETWEEN A DEEPWATER HARBOR THAT ENDOWS A COUNTRY OR REGION WITH A NATURAL ADVANTAGE AS TO WHERE TO LOCATE A PORT OR A SAUDI ARABIA THAT TRIES TO BECOME A WHEAT PRODUCER DEPLETING ITS GROUNDWATER RESOURCES AGAINST ALL LOGIC OF NATURAL ADVANTAGE AND THE DELIBERATE MAINTENANCE OF SOCIALLY REGRESSIVE POLICIES FOR THE PURPOSE OF GAINING COMPETITIVE ADVANTAGE THAT ADVANTAGE IS WHAT 11 OF THE 12 MEMBER STATES OF THE EUROPEAN COMMUNITY REJECTED WHEN THEY NEGOTIATED A SOCIAL CHARTER THAT CODIFIES MINIMUM STANDARDS OF WORKER RIGHTS THE 11 ARE ONLY NOW REALIZING THAT IN ALLOWING THE UK TO OPT OUT OF THE SOCIAL CHARTER THEY CREATED A LOOPHOLE THAT PERMITS THE UK TO RATCHET DOWN WORKER RIGHTS THROUGHOUT THE EC IT IS WHAT IS FUNDAMENTALLY GOING TO BE AT ISSUE IN THE NEGOTIATION OF THE SUPPLEMENTAL AGREEMENTS DEMANDED BY PRESIDENT CLINTON ON WORKER RIGHTS AND THE ENVIRONMENT IN THE NORTH AMERICAN FREE TRADE AGREEMENT 9303090108 930309 LETTERS TO THE EDITORS CHEER FOR DRUG FIRMS AGING BABY BOOMERS IT SEEMS THAT EVERY RECENT ARTICLE RELATED TO DRUG COMPANY STOCKS GIVES THE IMPRESSION THAT THE CLINTON ADMINISTRATION IS DEAD SET ON CRIPPLING THESE COMPANIES WITH THE INTENT OF REIGNING IN HEALTH CARE COSTS THERE MAY INDEED BE SOME PAINFUL DAYS AHEAD FOR THESE WALL STREET STALWARTS BUT PRESIDENT CLINTON WOULD BE FOOLISH TO HAMSTRING THE INDUSTRY THAT HAS BROUGHT A BETTER QUALITY AND QUANTITY OF LIFE TO MILLIONS OF AMERICANS IMAGINE AN ATTEMPT TO MEASURE THE NUMBER OF MANHOURS OF PRODUCTIVITY SAVED BY QUICK AND EFFECTIVE PHARMACOLOGICAL TREATMENTS THE NUMBERS WOULD BE ASTRONOMICAL AND THE IMPACT ON OUR ECONOMY UNDENIABLE PRESIDENT CLINTON AND HIS ADVISERS SURELY REALIZE THESE COMPANIES MUST CONTINUE TO BE ABLE TO DEVELOP THESE MIRACLES OF MODERN MEDICINE THROUGH RESEARCH FUNDED BY PROFITS I DO THINK WE CAN EXPECT PROFIT PER PILL TO DECREASE SOMEWHAT UNDER A CLINTON HEALTH PLAN HOWEVER INVESTORS SHOULD REMEMBER THAT BOOMERS ARE FAST APPROACHING THE AGE OF MORE FREQUENT ACHES AND PAINS HYPERTENSION DIABETES ULCERS ETC AND MANY SUCH ILLNESSES REQUIRE CHRONIC THERAPY THESE PEOPLE ARE INFORMED CONSUMERS AND I WOULD EXPECT THEM TO TAKE ADVANTAGE OF PHARMACOLOGICAL ADVANCES TO EASE THEIR TRANSITION INTO SENIOR CITIZENSHIP ALL THIS SHOULD TRANSLATE INTO HEALTHY BOTTOM LINES FROM INCREASED VOLUMES MY PREDICTION IS THAT SOME OF THE BEST YEARS FOR THE DRUG STOCKS ARE YET TO BE 9303090106 930309 PAPER INDUSTRY GROUP SAYS RECYCLING PLANS TO EXCEED 1995 GOAL THE AMERICAN FOREST AND PAPER ASSOCIATION SAID ITS PAPER RECYCLING EFFORTS ARE AHEAD OF SCHEDULE WITH THE 40 GOAL REACHABLE WITHIN A YEAR AND A 42 RECOVERY RATE POSSIBLE BY 1995 THE TRADE GROUP GAVE ITS PROGRESS REPORT ON RECYCLING AS THE PAPER INDUSTRY HOLDS ITS ANNUAL CONFERENCE THIS WEEK HERE FOR 1993 THE TRADE ORGANIZATION SAID IT EXPECTED 367 MILLION TONS OF PAPER WILL BE RECOVERED COMPARED WITH AN ESTIMATED 331 MILLION TONS OF PAPER HEADED FOR LANDFILLS ACCORDING TO THE FOREST AND PAPER GROUP ONE OF TWO NEWSPAPERS AND BETTER THAN HALF THE CORRUGATED BOXES MADE WERE RECOVERED BUT CONSERVATREE PAPER CO AN ENVIRONMENTAL GROUP PUSHING FOR INCREASED PAPER RECYCLING SAID THE INDUSTRY CONTINUES TO MOVE SLOWLY ON PAPER RECYCLING CONSERVATREE ATTEMPTING TO GAIN SUPPORT FOR ITS POSITION HAS ESTABLISHED A SET OF PRINCIPLES FOR BUYING PRODUCTS WITH RECYCLED CONTENT THE PRINCIPLES CALL ON ADHERENTS TO USE 75 RECYCLED PAPER PRODUCT BY 1995 INCLUDING 25 OF GRADE A RECYCLED PAPER WHICH WOULD INCLUDE 30 POSTCONSUMER RECYCLED PRODUCT THE ENVIRONMENTAL GROUP IS ALSO CALLING ON PAPER PRODUCERS TO USE A RATING SYSTEM TO INFORM CONSUMERS BETTER ON HOW MUCH POSTCONSUMER PRODUCT IS IN RECYCLED PAPERS BESIDES GRADE A GRADE B WOULD HAVE 20 POSTCONSUMER PRODUCT AND GRADE C 10 POSTCONSUMER PRODUCT THUS FAR CONSERVATREE REPORTS A HANDFUL OF BUSINESSES HAVE SIGNED ON TO ITS PRINCIPLES 9303090105 930309 LEISURE & ARTS PHOTOGRAPHER TO THE STARS OF OPERA AND CONCERT STAGE BY JOANNE KAUFMAN PLEASE LEAN FORWARD SAYS THE PHOTOGRAPHER CHRISTIAN STEINER TO THE PIANIST RUTH LAREDO NICE GOOD ENTHUSES MR STEINER TURN YOUR FACE NOT QUITE AS MUCH NOW TELL ME WHERE DID YOU PLAY THE BRAHMS AND HOW IS THE HONOLULU SYMPHONY SHAKE YOUR HEAD CHIN UP HIGHER YES GOOD AND IS THE BRAHMS A PIECE YOU'VE PLAYED OFTEN MR STEINER FIRES OFF A VOLLEY OF FLASHES AND RETURNS TO A DISCUSSION OF THE D MINOR CONCERTO WHAT DO YOU DO WITH THOSE TRILLS HE ASKS MS LAREDO OBLIGINGLY DEMONSTRATES ON THE BECHSTEIN IN A CORNER OF THE 55YEAROLD PHOTOGRAPHER'S CENTRAL PARK WEST LIVING ROOM HMM SAYS MR STEINER AS HE CAREFULLY OBSERVES THE BRISK FINGER WORK THAT'S NOT HOW I WAS TAUGHT MR STEINER IS NOT KIDDING HE WAS TAUGHT ABOUT CLASSICAL MUSIC THAT'S HIS REAL TRAINING AND HE ALMOST TURNED PRO BUT THEN HE STUMBLED INTO A CAREER AS A PHOTOGRAPHER NOW HE USES ALL OF HIS SKILLS PHOTOGRAPHING MUSICIANS BECAUSE HE UNDERSTANDS WHAT THEY DO AND THE PRESSURES THEY FACE THE GREAT NAMES OF OPERA AND THE CONCERT STAGE FLOCK TO HIS STUDIO FOR PUBLICITY SHOTS AND ALBUM COVERS ALICIA DE LARROCHA HERBERT VON KARAJAN LEONARD BERNSTEIN VLADIMIR HOROWITZ ITZHAK PERLMAN ANDRE WATTS JESSYE NORMAN MIDORI YOYO MA MISCHA DICHTER LUCIANO PAVAROTTI MARIA CALLAS AND DOZENS OF OTHER STAR PERFORMERS HAVE POSED FOR HIM THEY TALK ABOUT HIS INCREDIBLE EYE AND HIS IMPECCABLE TASTE HIS UNCANNY ABILITY TO MAKE THE MOST UNPREPOSSESSING MUSICIANS LOOK MOVIESTAR GLAMOROUS TO MAKE THE FORBIDDING LOOK FRIENDLY THE SERIOUS PLAYFUL THE RIGID RELAXED A LOT OF OPERA SINGERS AND CLASSICAL MUSICIANS SEE THEMSELVES AS GRAND AND AUSTERE AND LARGER THAN LIFE SAYS OPERA SINGER JOANNA SIMON IN HIS PHOTOGRAPHS CHRISTIAN IS ABLE TO REACH THE HUMAN BEING BEHIND THE FACADE A LOT OF THE PHOTOS I'VE HAD TAKEN I'VE LOOKED TERRIBLY BROODING AND LOOK LIKE I HAVE A BAD DISPOSITION SAYS MR WATTS THE PIANIST CHRISTIAN MADE ME LOOK RATHER ENGAGING AND APPROACHABLE NOT FOR MR STEINER THE CLICHED IMAGE OF A VIOLINIST WITH INSTRUMENT TUCKED UNDER THE CHIN A PIANIST WITH ELBOW PROPPED ON THE STEINWAY HE PERSUADED CALLAS THE GREAT OPERA SINGER AND THE FLUTIST EUGENIA ZUKERMAN TO POSE ON A BEANBAG CHAIR HE CLICKED HER FORMER HUSBAND PINCHAS ZUKERMAN HOLDING A VIOLIN IN FRONT OF HIS FACE LIKE A VEIL MUCH OF MR STEINER'S SUCCESS CAN BE CREDITED TO HIS EASY DEMEANOR AND HIS SKILL WITH A HASSELBLAD AND A CANON RT BUT EQUALLY CRITICAL IS HIS OWN MUSICAL BACKGROUND INDEED IF NOT FOR AN UNFORTUNATE EXPERIENCE EARLY IN HIS CAREER MR STEINER WOULD SURELY BE IN FRONT OF THE CAMERA NOT BEHIND IT THE BERLINBORN PHOTOGRAPHER COMES FROM A LONG STRING OF MUSICIANS MY FATHER WAS ONE OF 12 AND ALL WERE BROUGHT UP TO PLAY AN INSTRUMENT HE SAYS IT WAS KIND OF MEDIEVAL MR STEINER'S IMMEDIATE FOREBEARS MOVED FROM CITY TO GERMAN CITY PLAYING CONCERTS IN RAILROAD STATIONS WHILE THE YOUNGEST PASSED THE CUP HIS FATHER A FORMER FIRST VIOLIST AT THE DEUTSCHE OPER WAS BORN IN A CHURCH TOWER WHERE THE FAMILY LIVED RENTFREE IN EXCHANGE FOR RINGING THE BELLS THE MUSICAL TRADITION CONTINUED INTO THE NEXT GENERATION I STARTED WHEN I WAS FOUR ON THE CELLO AT 4 1/2 ON THE VIOLIN AND I DIDN'T LIKE THAT SAYS MR STEINER WHOSE TWO ELDER BROTHERS A CELLIST AND A VIOLIST ARE MEMBERS OF THE BERLIN PHILHARMONIC SO AT THE RIPE OLD AGE OF FIVE I WAS TAKEN TO THE PIANO AND THAT STUCK AFTER SEVERAL YEARS OF CONSERVATORY TRAINING MR STEINER PICKED OFF MOST OF THE GERMAN COMPETITIONS INCLUDING ONE OFFERING A SCHOLARSHIP FOR STUDY IN A FOREIGN COUNTRY THE CELEBRATED CHILEAN PIANIST CLAUDIO ARRAU HEARD MR STEINER PLAY AND URGED HIM TO COME TO NEW YORK IT WAS DURING STUDY THERE WITH THE RENOWNED MASTER TEACHER NADIA REISENBERG THAT MR STEINER HAD THE WIND TAKEN OUT OF MY SAILS HE SAYS SHE WAS WRONG FOR ME BUT I WAS STUBBORN AND THOUGHT I COULD PROVE MYSELF EVEN WITH HER NEGATIVISM AND I BECAME ALMOST PARALYZED SHE WOULD SAY THINGS LIKE YOU'RE REALLY NOT AS GIFTED AS YOU THINK YOU ARE' I LOST MY CONFIDENCE AND THE DESIRE TO PLAY RETURNING BRIEFLY TO GERMANY MR STEINER CONSIDERED ENGINEERING AND INTERIOR DESIGN THEN A FRIEND SUGGESTED PHOTOGRAPHY AT FIRST HE DID FASHION SPREADS BUT WHEN HE BEGAN PHOTOGRAPHING MUSICAL ARTISTS AN EARLY SUBJECT WAS CALLAS WHO THROUGH MR STEINER'S LENS SHED THE DIVA MASK AND BECAME A VULNERABLE FLIRTATIOUS MISCHIEVOUS GIRL I REALIZED THAT WAS A LANGUAGE I COULD SPEAK HE SAYS THAT WAS WHERE I HAD RAPPORT AND THEREFORE WAS GETTING RESULTS I UNDERSTOOD WHAT WERE THE DIFFICULTIES OF A SINGER I UNDERSTOOD ABOUT PRACTICING AND WHAT GOES INTO IT FOR AN INSTRUMENTALIST I COULD TALK ABOUT PERFORMANCES I'D HEARD THEM IN AND IT GOT THEM TO FORGET THEIR FACES CHRISTIAN DOESN'T MAKE YOU FEEL LIKE YOU'RE POSING SAYS MS LAREDO HE HAS A CONVERSATION WITH YOU ABOUT MUSIC AND PUTS YOU AT EASE THE CAMERA JUST SORT OF EAVESDROPS A LOT OF MUSICIANS THINK IT'S A TOTAL NUISANCE TO BE PHOTOGRAPHED ACKNOWLEDGES MR STEINER WHO CHARGES 800 PER SESSION THEY THINK IT'S DEMEANING THEY WOULD RATHER COMMUNICATE THROUGH THEIR MUSIC BUT IN TODAY'S MARKET THE IMAGE IS IMPORTANT AFTER HIS CRISIS OF CONFIDENCE IT WAS SEVERAL YEARS BEFORE MR STEINER HIMSELF ONCE AGAIN COMMUNICATED THROUGH MUSIC BUT IN 1969 AND IN 1970 THROUGH THE OFFICES OF THE PIANIST EARL WILD HE MADE PIANO RECORDINGS FOR RCAREADER'S DIGEST THEN STOPPED AGAIN FOR EIGHT YEARS HE WAS LURED BACK TO PUBLIC PERFORMANCE BY MS SIMON WHO PERSUADED MR STEINER TO BE HER ACCOMPANIST FOR A MARATHON CONCERT AT MANHATTAN'S SYMPHONY SPACE SHE SAID IT WOULD BE TOTALLY NO PRESSURE NO CRITICS RECALLS MR STEINER THE DAY ARRIVED HE WALKED IN AND SAW EVERY PIANIST IN THE WORLD GARY GRAFFMAN JOSEPH KALICHSTEIN STEPHANIE BROWN ALL OF WHOM HAD VOLUNTEERED THEIR SERVICES FOR THE EVENT ALL OF WHOM WERE MR STEINER'S CLIENTS ASSUMING HE WAS THERE TO TAKE PICTURES THEY WERE MORE THAN A BIT SURPRISED WHEN HE SAT DOWN AT THE PIANO ALL OF A SUDDEN IT WAS LIKE CARNEGIE HALL MR STEINER RUEFULLY RECALLS BUT THE CONCERT WAS A GREAT SUCCESS SO WERE SUBSEQUENT PERFORMANCES WITH THE NATIONAL SYMPHONY OF MEXICO WITH HIS CELLIST BROTHER PETER AT THE BERLIN PHILHARMONIC AND WITH MS NORMAN AT THE TANNERY POND CONCERTS A CHAMBERMUSIC FESTIVAL IN THE BERKSHIRES THAT MR STEINER HAS HEADED FOR THE PAST FIVE YEARS IN MAY HE WILL ACCOMPANY SOPRANO CAROL VANESS AT THE OPENING CONCERT OF THE TANNERY SEASON AN AMALGAM OF MOZART CHAUSSON AND POULENC HIS CLIENTS TEND TO BE AMAZED BY HIS KEYBOARD ACTIVITIES MR STEINER RECALLS THAT AFTER HEARING HIM PLAY PIANO FOR THE FIRST TIME MR WATTS SAID YOU'RE THIS KIND OF PIANIST AND YOU TAKE PHOTOGRAPHS MR STEINER TOOK NO OFFENSE HE'S STILL TAKING PICTURES AND OCCASIONALLY TAKING BOWS I'M VERY HAPPY WITH THE WAY THINGS TURNED OUT HE EXPLAINS I'M HAPPY I WAS ABLE TO COMBINE THE TWO I REALLY BELIEVE ONE FEEDS THE OTHER MS KAUFMAN IS A FREELANCE WRITER IN NEW YORK