TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN INCREASED 11 IN FEBRUARY FROM THE YEAREARLIER MONTH THE FIRST RISE IN FIVE MONTHS THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION SAID BEHIND THE UPSWING IS AN INCREASE IN IMPORTS BY SUCH JAPANESE MAKERS AS TOYOTA MOTOR CORP AND HONDA MOTOR CO FROM THEIR US PLANTS AS WELL AS EXPANDED SALES OF ADAM OPEL AG OF GERMANY SINCE JAPAN'S BIGGEST IMPORTEDCAR DEALER YANASE CO BEGAN MARKETING THAT MAKER'S MODELS FROM JANUARY AN ASSOCIATION SPOKESMAN EXPLAINED ROVER GROUP PLC OF BRITAIN ALSO INCREASED SALES FOLLOWING ITS RECENT PRICE CUTS IN THE JAPANESE MARKET AS THE COMPANY DECIDED TO PASS ON RECENT DROPS OF THE POUND AGAINST THE YEN IN FOREIGN EXCHANGE MARKETS HE SAID THESE COMPANYSPECIFIC FACTORS ARE LIKELY TO KEEP LIFTING OVERALL IMPORTEDVEHICLE SALES FROM YEAREARLIER LEVELS IN COMING MONTHS THE SPOKESMAN SAID BUT THE DOWNWARD MOVE OF DEMAND FOR OVERALL IMPORTED CARS HASN'T ENDED YET HE SAID CITING CONTINUED WEAKNESS OF MAJOR GERMANMADE MODELS SALES OF IMPORTED VEHICLES TOTALED 14117 UNITS IN FEBRUARY UP FROM 12720 UNITS IN THE SAME MONTH A YEAR AGO THE GAIN CAME AFTER YEARONYEAR DROPS OF 63 IN JANUARY 37 IN DECEMBER AND 76 IN NOVEMBER REFLECTING JAPAN'S WEAK ECONOMY IMPORTEDVEHICLE SALES HAD BEEN SAGGING IN LINE WITH JAPAN'S OVERALL VEHICLE MARKET JAPAN'S OVERALL VEHICLE SALES IN FEBRUARY MARKED A 79 FALL FROM THE YEAR BEFORE TO 422200 UNITS AS REPORTED EARLIER THIS WEEK 9303050113 930305 BUSINESS BRIEF CIRCUIT CITY STORES INC FIRM SAYS FEBRUARY SALES ROSE 17 TO 2405 MILLION CIRCUIT CITY STORES INC SAID FEBRUARY SALES ROSE 17 TO 2405 MILLION FROM 2052 MILLION COMPARABLE STORE SALES ROSE 4 THE RICHMOND VA CONSUMER ELECTRONICS AND APPLIANCE RETAILER SAID SALES FOR THE FISCAL YEAR ENDED FEB 28 WERE 327 BILLION UP 17 FROM 279 BILLION A YEAR EARLIER WHILE COMPARABLE STORE SALES ROSE 7 FOR THE YEAR AND 9 FOR THE FOURTH QUARTER THE COMPANY NOTED THAT THE LATEST FEBRUARY SALES PERIOD DIDN'T INCLUDE A LEAP YEAR SATURDAY THAT OCCURRED IN 1992 CIRCUIT CITY SAID IT EXPECTS TO OPEN 40 SUPERSTORES IN FISCAL 1994 MAINLY IN BOSTON AND CHICAGO THE COMPANY OPERATES 214 SUPERSTORES SEVEN CIRCUIT CITY STORES AND 39 IMPULSE STORES IN THE EASTERN MIDWESTERN AND WESTERN US 9303050112 930305 LAW MORE ARE NAMED IN PROBE OF MOTEL 6 INSIDER TRADING BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIVE MORE PEOPLE HAVE BEEN NAMED IN CONNECTION WITH AN ALLEGED INSIDER TRADING RING THAT ACCORDING TO PROSECUTORS MADE NEARLY 45 MILLION IN ILLEGAL PROFITS WHEN MOTEL 6 LP WAS ACQUIRED BY FRANCE'S ACCOR SA IN 1990 THE US ATTORNEY'S OFFICE IN MANHATTAN YESTERDAY ANNOUNCED THE INDICTMENT OF TWO MORE PEOPLE IN CONNECTION WITH THE ALLEGED RING BRINGING THE NUMBER OF PEOPLE CRIMINALLY CHARGED TO FOUR IN A RELATED LAWSUIT THE SECURITIES AND EXCHANGE COMMISSION FILED CIVIL SUIT AGAINST FIVE MORE PEOPLE INCLUDING THE TWO NEWLY CHARGED IN THE INDICTMENT TO BRING TO 23 THE NUMBER ALLEGED TO BE INVOLVED THE NEW INDICTMENT AND SEC CHARGES ARE SIGNIFICANT BECAUSE THEY SHOW GOVERNMENT INVESTIGATORS ARE CONTINUING TO PEEL OFF LAYERS OF THE ALLEGED RING THAT THEY SAY INVOLVED INSIDER TRADING BY PEOPLE FOUR OR FIVE STEPS REMOVED FROM THE ORIGINAL SOURCE OF INFORMATION ACCORDING TO PAPERS FILED BY PROSECUTORS AND THE SEC THE RING STARTED WHEN CARL HARRIS WHO HAS SINCE DIED LEARNED ABOUT THE MOTEL 6 TAKEOVER FROM HUGH THRASHER AN EXECUTIVE VICE PRESIDENT OF THE HOTEL CHAIN MR HARRIS ALLEGEDLY SHARED THAT INFORMATION WITH FRIENDS IN RETURN FOR A CUT OF THE PROFITS FROM THEIR INSIDER TRADING MR THRASHER WHO WAS A FRIEND OF MR HARRIS DIDN'T TRADE ON THE INFORMATION HE WAS CHARGED IN THE ORIGINAL SEC LAWSUIT AND HAS DENIED THE ALLEGATIONS NEWLY ACCUSED OF INSIDER TRADING IN THE CRIMINAL INDICTMENT ARE JOHN ANDERSON AND STEPHEN GOODHUE BOTH OF BEVERLY HILLS CALIF THEY ARE CHARGED WITH CONSPIRACY FRAUD AND MONEY LAUNDERING MR ANDERSON IS COOWNER OF A CHAIN OF TANNING SALONS IN THE LOS ANGELES AREA HIS LAWYER RICHARD BEN VENISTE SAID HIS CLIENT INTENDED TO DEFEND THE CHARGES VIGOROUSLY MR GOODHUE WAS MR ANDERSON'S ROOMMATE ACCORDING TO THE INDICTMENT HE COULDN'T BE REACHED FOR COMMENT AND FEDERAL PROSECUTORS SAID HE IS TRAVELING IN AUSTRALIA BESIDES MESSRS ANDERSON AND GOODHUE WHO FEDERAL PROSECUTORS SAID MADE 11 MILLION IN ILLEGAL PROFITS THE SEC COMPLAINT NAMES EZRA CHAMMAH THE PRESIDENT OF ITAFIN INC A REAL ESTATE MANAGEMENT CONCERN IN NEW YORK D SANDY MARSH A FRIEND AND PARTNER OF MR ANDERSON'S WHO LIVES IN SAN FRANCISCO AND JACK P MARSH A RESIDENT OF LOS ANGELES WHO IS THE OWNER OF MAGNA EQUITY CORP AND SANDY MARSH'S FATHER SANDY MARSH DECLINED TO COMMENT ON THE SEC LAWSUIT PHONE CALLS TO THE OTHER TWO MEN SEEKING COMMENT WEREN'T RETURNED ACCORDING TO THE SEC SANDY MARSH MADE 152261 IN ILLEGAL PROFITS JACK MARSH MADE 305879 AND MR CHAMMAH MADE 229720 THE MONEY LAUNDERING CHARGE AGAINST MESSRS ANDERSON AND GOODHUE INVOLVES THE ALLEGATION THAT THE TWO MEN CASHED CHECKS IN SMALL ENOUGH AMOUNTS TO AVOID BANK REPORTING REQUIREMENTS SO THEY COULD PAY MR HARRIS FOR THE INFORMATION WITHOUT BEING DETECTED IF CONVICTED OF MONEY LAUNDERING THE DEFENDANTS FACE THE POSSIBILITY THAT THE GOVERNMENT WILL SEEK THE FORFEITURE OF THEIR ILLEGAL GAINS 9303050111 930305 PICTURE THE GUYS DUNKING COOKIES AND SCREAMING MURDER THE BUM' BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL A NEW CRY HAS JOINED THE HAWKERS' CHORUS AT SPORTS EVENTS MILK AND COOKIES THE PAIR AS CLASSIC AS SUCH MOREESTABLISHED BALLGAME TWOSOMES AS HOT DOGS AND BEER AND PEANUTS AND CRACKERJACKS HAS BEEN AVAILABLE AT NEW JERSEY'S MEADOWLANDS SPORTS COMPLEX SINCE FOOTBALL SEASON AND THE COOKIES ARE GOING LIKE WELL HOT CAKES WILLIAM BORI WHO IS THE MEADOWLANDS LICENSEE OF MRS FIELDS COOKIES INC SAYS THAT DURING FOOTBALL SEASON HE AVERAGED ABOUT 15000 A GAME AT GIANTS STADIUM WHICH HOLDS MORE THAN 75000 FANS AND IS HOME TO BOTH THE GIANTS AND THE JETS HE SAYS SALES HAVEN'T BEEN AS SWEET DURING THE NEW JERSEY NETS' BASKETBALL SEASON AT THE SPORTS COMPLEX BECAUSE THE CROWDS ARE SMALLER LEAVENED BY THE SUCCESS OF THE MEADOWLANDS FRANCHISE THE FIRST MRS FIELDS OPERATION AT A SPORTS ARENA THE NATIONAL COOKIE CHAIN SAYS IT IS LOOKING TO SERVE UP MILK AND COOKIES FOR OTHER HOME TEAMS DEBBI FIELDS PRESIDENT AND FOUNDER OF THE PARENT COMPANY MRS FIELDS INC PARK CITY UTAH SAYS THROUGH A SPOKESMAN THAT HAVING A SPORTS FRANCHISE GENERATES CUSTOMERS WHO DON'T FIT OUR TYPICAL CUSTOMER PROFILE NAMELY MEN MILK AND COOKIES AREN'T THE FIRST ADDITION TO THE CLASSIC BALLGAME MENU NACHOS POTATO KNISHES AND EVEN SUSHI ARE TICKLING THE TONGUES OF SPORTS FANS AROUND THE COUNTRY BUT SERVING MILK AND COOKIES MR BORI SAYS HAS A SPECIAL WHOLESOME IMAGE IT'S ALLAMERICAN MR BORI SAYS THAT WHEN HE CAME UP WITH THE IDEA HE ENVISIONED VENDORS TOSSING BAGS OF COOKIES INTO THE AUDIENCE THE SAME WAY THAT BAGS OF PEANUTS ARE THROWN BUT MILK AND COOKIES ARE A LITTLE TOUGHER TO CARRY AROUND AT A RECENT BASKETBALL GAME A VENDOR WALKED DOWN THE AISLES CAREFULLY BALANCING A LARGE TRAY OF SMALL CARTONS OF MILK AND CHOCOLATECHIP COOKIES THE COOKIES COST 125 EACH MILK COSTS 125 FOR A SMALL CARTON ABOUT THE SIZE GIVEN TO CHILDREN IN SCHOOL CAFETERIAS AND 2 FOR A LARGE THERE'S NO PACKAGE DEAL WE SELL MORE COOKIES THAN MILK MR BORI CONCEDES BUT HE DOESN'T THINK THE IMBALANCE UNDERMINES HIS MENU'S FAMILY IMAGE AND WHEN THE STADIUM FEATURES SHOWS GEARED FOR CHILDREN SUCH AS PROFESSIONAL WRESTLING AND ICESKATING EXTRAVAGANZAS MR BORI SAYS HE SELLS A LOT MORE MILK THAN USUAL 9303050110 930305 INTERNATIONAL PHILIPS REPORTS BIG LOSS FOR '92 PLANS JOB CUTS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL HURT BY A SLUMP IN ITS CONSUMER ELECTRONICS BUSINESS PHILIPS ELECTRONICS NV REPORTED A 900 MILLION GUILDER 4858 MILLION NET LOSS FOR 1992 AND SAID IT PLANS TO CUT MORE JOBS AND COSTS THIS YEAR THE DUTCH ELECTRONICS GIANT'S LOSS INCLUDED 12 BILLION GUILDERS IN EXTRAORDINARY CHARGES FOR MORE JOB CUTS AND PLANT CLOSURES THIS YEAR THE LOSS WHICH COMPARED WITH A PROFIT OF 112 BILLION GUILDERS IN 1991 AND A NET LOSS OF 424 BILLION GUILDERS IN 1990 MATCHED THE MOSTPESSIMISTIC EXPECTATIONS OF FINANCIAL ANALYSTS BUT PHILIPS'S STOCK ROSE ANYWAY YESTERDAY BY 11 GUILDERS A SHARE TO 225 GUILDERS ON THE HOPE THAT THINGS CAN'T GET MUCH WORSE SINCE 1990 THE ONCEMIGHTY ELECTRONICS CONGLOMERATE HAS BEEN STRUGGLING TO REVERSE A DECLINE IN SOME OF ITS KEY DIVISIONS INCLUDING THE UNIT MAKING COMPACT DISK PLAYERS VIDEO RECORDERS AND OTHER CONSUMER ELECTRONICS UNITS TWO YEARS AGO CHIEF EXECUTIVE OFFICER JAN TIMMER ORDERED ONE OF THE MOST PAINFUL REORGANIZATIONS OF THE OLD DUTCH MULTINATIONAL SLASHING JOBS CLOSING FACTORIES AND SELLING BUSINESSES TO LOWER PHILIPS'S HIGH COSTS SINCE THE END OF 1989 THE COMPANY HAS SHED 52600 JOBS OR 17 OF ITS WORK FORCE BUT AT A NEWS CONFERENCE YESTERDAY AT PHILIPS HEADQUARTERS IN EINDHOVEN THE NETHERLANDS MR TIMMER WARNED OF MORE PAIN TO COME BETWEEN 10000 AND 15000 ADDITIONAL JOB CUTS ARE IN STORE FOR THIS YEAR OF WHICH NEARLY 1000 HAVE ALREADY BEEN ANNOUNCED A SPOKESMAN SAID WHAT'S MORE THE SPOKESMAN QUOTED MR TIMMER AS SAYING THAT INVESTMENTS WILL BE CUT BACK DRASTICALLY EXCEPT IN AREAS DEVOTED TO NEW PRODUCTS THE COMPANY IS PINNING ITS LONGTERM HOPES FOR REVIVAL ON SUCH RECENTLY LAUNCHED PRODUCTS AS ITS DIGITAL TAPECASETTE PLAYERS AND ITS INTERACTIVE COMPUTER DISKS FOR EDUCATION AND ENTERTAINIMENT ANALYSTS DON'T EXPECT EITHER PRODUCT LINE TO BECOME A BIG MONEY MAKER FOR AT LEAST A FEW YEARS ON THE BASIS OF PHILIPS'S STATEMENTS FINANCIAL ANALYSTS YESTERDAY WERE PREDICTING THAT THE COMPANY MAY RETURN TO THE BLACK THIS YEAR BARRING ANY UNEXPECTED FURTHER RESTRUCTURING CHARGES MOST OF PHILIPS'S PROBLEMS LAST YEAR STEMMED FROM CONSUMER ELECTRONICS BOTH ITS OWN PHILIPS BRANDS AND THOSE OF ITS 316OWNED GERMAN AFFILIATE GRUNDIG AG GRUNDIG ALONE HAD A LOSS OF 484 MILLION GUILDERS LAST YEAR INCLUDING A 200 MILLION GUILDER CHARGE FOR JOB CUTS AND OTHER RESTRUCTURING EXPENSES GRUNDIG'S PROBLEM A PHILIPS STATEMENT SAID IS PARTLY THAT IT LACKS ECONOMIES OF SCALE TO REMEDY THAT PHILIPS SAID IT PLANS FURTHER STEPS TO INTEGRATE GRUNDIG'S BUSINESS INTO ITS OWN AND TO ASSUME GREATER CONTROL OVER THE AFFILIATE IN LIGHT OF ITS PLANS PHILIPS SAID IT HAS BEGUN CONSOLIDATING A PROPORTION OF GRUNDIG'S FINANCIAL RESULTS INTO ITS OWN STATEMENT MEANING PHILIPS' OWN 1992 RESULTS INCLUDED 193 MILLION GUILDERS IN LOSSES ATTRIBUTED TO GRUNDIG 9303050109 930305 LETTERS TO THE EDITOR BIG BUSINESS HAS ONE IDEOLOGY PAUL A GIGOT'S EXCELLENT FEB 12 POTOMAC WATCH COLUMN CHAMBER MAIDS BIG BUSINESS COURTS CLINTON EDITORIAL PAGE POINTS UP A PECULIAR FACT BIG BUSINESS HAS RARELY BEEN A STRONG DEFENDER OF FREE ENTERPRISE ANY MORE THAN IT HAS BEEN A STRONG DEFENDER OF DEMOCRACY AGAINST TOTALITARIANISM MR GIGOT POINTS OUT THAT THE AFLCIO HAD THE GOOD SENSE TO OPPOSE PRESIDENT NIXON'S WAGE AND PRICE CONTROLS AT ONE TIME IT ALSO OPPOSED MR NIXON'S FOREIGN POLICIES ESPECIALLY THE CHINA CARD NO WONDER WILLIAM BUCKLEY ONCE WROTE THAT THE AFLCIO EXECUTIVE COUNCIL UNDER GEORGE MEANY'S LEADERSHIP CONTINUES TO MAKE MORE SENSE ON INTERNATIONAL PROBLEMS THAN ANY OTHER OF OUR NATIONAL INSTITUTIONS CIVILIAN OR GOVERNMENTAL IT IS EASY TO FORGET THAT DURING THE HEYDAY OF SOVIET TOTALITARIANISM THERE WERE BIG BUSINESS SPOKESMEN WHO TALKED IN THE KINDLIEST FASHION ABOUT THE SOVIET LEADERSHIP HAD A LABOR LEADER LAUDED THE LATE LEONID BREZHNEV AS DID PEPSICO'S DONALD KENDALL HE WOULD HAVE BEEN DENOUNCED BY HIS COLLEAGUES ANOTHER VOICE OF BIG BUSINESS CYRUS VANCE WHEN HE WAS SECRETARY OF STATE ONCE SAID IN THE NAME OF CORPORATE LIBERALISM THAT LEONID BREZHNEV IS A MAN WHO SHARES OUR DREAMS AND ASPIRATIONS I RECALL THE FULLPAGE AD IN YOUR NEWSPAPER SOME YEARS AGO SIGNED BY THE CEOS OF THE US'S LARGEST CORPORATIONS WELCOMING THE ROMANIAN TYRANTS PRESIDENT AND MRS NICOLAE CEAUSESCU ON A VISIT TO THE US HAD THE AFLCIO EXECUTIVE COUNCIL TAKEN OUT SUCH AN AD THE MEDIA WOULD HAVE REPORTED A SOVIET TAKEOVER OF AMERICAN LABOR I RECALL A PAGEONE STORY IN YOUR PAPER THAT AMERICAN BUSINESSMEN WERE WORRYING THAT THE CARTER ADMINISTRATION'S EMPHASIS ON HUMAN RIGHTS WOULD HURT OVERSEAS COMMERCE WHEN GEN WOJCIECH JARUZELSKI DECLARED MARTIAL LAW IN POLAND THOMAS THEOBALD A CITIBANK VICE PRESIDENT SAID WHO KNOWS WHAT POLITICAL SYSTEM WORKS THE ONLY TEST WE CARE ABOUT IS CAN THEY PAY THEIR BILLS MR THEOBALD IS NOW WITH CONTINENTAL ILLINOIS AND HOW ABOUT THOSE AMERICAN CORPORATIONS THAT SUPINELY HAND OUT MILLIONS OF BLACKMAIL DOLLARS THROUGH FOUNDATIONS WHOSE STIPENDIARIES ARE DEDICATED TO THE DESTRUCTION OF THE MARKET SYSTEM BECAUSE IT ENDANGERS OWLS OR WOLVES OR WHATEVER OR THOSE CORPORATIONS THAT UNDERWRITE TV PROGRAMS AND FILMS DERIDING AND MOCKING OUR POLITICAL AND ECONOMIC SYSTEM WHICH TURN CREATURES LIKE ICET INTO ENTERTAINMENT DEMIGODS 9303050108 930305 BUSINESS BRIEF US SHOE CORP FEBRUARY SAMESTORE SALES AND TOTAL SALES DECLINED US SHOE CORP CINCINNATI SAID SALES IN STORES OPEN A YEAR OR MORE FELL 14 IN THE FOUR WEEKS ENDED FEB 27 FROM FEBRUARY 1992 WHILE TOTAL SALES FOR ITS RETAIL OPERATIONS FELL 11 TO 1423 MILLION FROM 1439 MILLION THE COMPANY'S FOOTWEAR RETAILING BUSINESS SAW THE LARGEST DECLINES WITH A DROP OF 9 IN SAMESTORE SALES WHILE ITS TOTAL SALES DROPPED 166 TO 136 MILLION BECAUSE OF STORE CLOSINGS IN THE WOMEN'S APPAREL BUSINESS WHICH INCLUDES CASUAL CORNER STORES SAMESTORE SALES SLIPPED 05 WHILE TOTAL SALES FELL 2 TO 749 MILLION THE LENSCRAFTERS OPTICAL RETAILING GROUP SAW SAMESTORE SALES FALL 07 WHILE TOTAL SALES ROSE 52 TO 538 MILLION 9303050107 930305 INTERNATIONAL BRIEF NEWS CORP UNIT TO RAISE 450 MILLION TO 500 MILLION BY OFFERING NEWS CORP RUPERT MURDOCH'S AUSTRALIABASED INTERNATIONAL MEDIA COMPANY SAID IT EXPECTS ONE OF ITS SUBSIDIARIES TO RAISE BETWEEN 450 MILLION AND 500 MILLION THROUGH A SECURITIES ISSUE PROCEEDS WILL BE USED TO REPAY BANK DEBT THE COMPANY ADDED NEWS CORP SAID THE SUBSIDIARY WHICH IT DIDN'T IDENTIFY IS EXPECTED TO ISSUE LIQUID YIELD OPTION NOTES DUE 2013 THE NOTES WILL BE EXCHANGEABLE FOR COMMON SHARES OF NEWS CORP AT A RATE EXPECTED TO BE ABOUT 20 ABOVE THE MARKET VALUE OF THE COMMON SHARES ON THE DATE OF ISSUANCE MERRILL LYNCH & CO WILL BE PLACEMENT AGENT FOR THE ISSUE WHICH WILL BE MADE THROUGH AN EXEMPT OFFERING AND PRIVATE PLACEMENT 9303050106 930305 THAILAND MOVES TO LIBERALIZE BANK INDUSTRY DEVELOPMENT OF BANGKOK AS A FINANCIAL CENTER FOR INDOCHINA IS A GOAL A WALL STREET JOURNAL NEWS ROUNDUP BY GRANTING A SLEW OF OFFSHORE BANKING LICENSES THAILAND IS LIBERALIZING ITS FINANCIAL SECTOR WITH THE HOPE OF SOMEDAY MAKING BANGKOK A FINANCIAL HUB FOR INDOCHINA AND A COMPETITOR WITH HONG KONG AND SINGAPORE EARLIER THIS WEEK THAILAND NAMED 15 DOMESTIC AND 32 FOREIGN BANKS TO ITS NEW OFFSHORE BANKING FACILITY LOWERING TAXES ON CERTAIN BANKING TRANSACTIONS WE HOPE THAT ALL OF THE BANKS WILL BE A SUCCESS AND THAT THE OFFSHORE BANKING MARKET WILL PROMOTE THAILAND AS A CENTER FOR FINANCE IN INDOCHINA FINANCE MINISTER TARRIN NIMMANAHAEMINDA SAID IN ANNOUNCING THE NEW LICENSES WHICH WILL BE FORMALLY PRESENTED MARCH 16 THE BANGKOK INTERNATIONAL BANKING FACILITY OR BIBF WILL LOWER THE TAX CHARGED ON FOREIGNCURRENCY LOANS MADE IN THAILAND OR THROUGH THAILAND TO THIRD COUNTRIES INITIALLY LARGE DOMESTIC BANKS ARE EXPECTED TO BE THE BIGGEST BENEFICIARIES BECAUSE THEY WILL BE MORE COMPETITIVE WITH THEIR EXPERIENCED FOREIGN COUNTERPARTS THE OTHER BIG WINNERS ARE 20 FOREIGN BANKS COMPRISING MAJOR MONEYCENTER BANKS FROM JAPAN US EUROPE AND REGIONAL ASIAN BANKS WHO UNTIL NOW WERE ONLY ALLOWED REPRESENTATIVE OFFICES IN THAILAND FOREIGN BANKERS SAY THE FACILITY IS ONE OF THE FIRST ASIAN BANKING REFORMS THAT COULD TAKE SOME BUSINESS FROM THE TRADITIONAL FINANCIAL CENTERS IN SINGAPORE AND HONG KONG BANKERS AND ANALYSTS WELCOMED THE MOVE BUT WARNED IT IS ONLY A STEP IN A POTENTIAL 10TO15YEAR EFFORT TO MAKE BANGKOK A REGIONAL HUB THAI AUTHORITIES ARE MOVING SLOWLY TO MAKE SURE LOCAL BANKS ARE READY BEFORE THE DOORS TO UNBRIDLED COMPETITION WITH FOREIGN BANKS ARE OPENED TO PROTECT DOMESTIC BANKS FROM COMPETITION THERE STILL ARE ONLY 14 FOREIGN BANKS WITH FULL BRANCH LICENSES IN THAILAND AND EACH IS ALLOWED ONLY ONE BRANCH IT BIBF WILL BE A SUCCESS BUT IT IS NOT GOING TO BE A BIG CHANGE ALL OF A SUDDEN IT WILL BE A GRADUAL SHIFT SAID CHESADA LOHAUNCHIT MANAGING DIRECTOR OF TARA SIAM BUSINESS INFORMATION LTD AN INDEPENDENT RESEARCH FIRM ALL 15 THAI BANKS WERE GIVEN BIBF APPROVAL ALTHOUGH MR TARRIN WARNED THAT ANY INTERNAL PROBLEMS SHOULD BE RESOLVED BEFORE THE BANKS ENGAGE IN OFFSHORE BUSINESS BANGKOK BANK OF COMMERCE LTD AND UNION BANK OF BANGKOK LTD FOR INSTANCE ARE IN THE MIDST OF SHAREHOLDER DISPUTES WITH MANAGEMENT FOR THAI BANKS THE LICENSE MEANS THEY CAN PERFORM IN BANGKOK SOME TRANSACTIONS THEY PREVIOUSLY HAD TO BOOK IN HONG KONG OR SINGAPORE WHERE THEY FACED BIGGER MORESEASONED FOREIGN RIVALS THE CHANGE WILL BE A BIG BOOST FOR THE LARGER THAI BANKS THAT ALREADY HAVE OVERSEAS CLIENTS INTERESTED IN THE CROSSBORDER TRANSACTIONS CENTRAL TO BIBF INCREASED COMPETITION ALSO WILL AID THAI BORROWERS WHO ARE LIKELY TO SEE LOWER INTEREST RATES AS THE BIBF MARKET BECOMES MORE ACTIVE DR CHESADA SAID OF THE 32 FOREIGN BANKS SELECTED FOR THE FACILITY EIGHT ARE BASED IN THE US OR CANADA 11 IN EUROPE EIGHT IN JAPAN AND FIVE ELSEWHERE IN ASIA FOREIGN BANKERS ARE GENERALLY PLEASED WITH BIBF EVEN IF IT ISN'T ALL THEY HAD HOPED WITH TAX INCENTIVES THAT AREN'T AS ATTRACTIVE AS HONG KONG'S OR SINGAPORE'S MOREOVER THE FINANCIAL MARKET IN BANGKOK REMAINS RELATIVELY UNDERDEVELOPED BASIC LOANS AND DEPOSITS MAKE UP THE BULK OF THAILAND'S BANKING BUSINESS AND ITS BOND MARKET IS IN ITS INFANCY AND ALTHOUGH THAILAND HAS A GEOGRAPHIC ADVANTAGE IN INDOCHINA ITS BUSINESS AND BANKING FORAYS TO DATE THERE HAVE BEEN LIMITED ESPECIALLY IN VIETNAM WHICH OFFERS FAR MORE POTENTIAL THAN NEIGHBORING COUNTRIES BUT BANGKOK DOES HAVE ADVANTAGES SOME TRANSACTIONS WILL BE CHEAPER AND IF THE STAFF PUTTING A DEAL TOGETHER IS IN THAILAND IT MAY BE EASIER TO COMPLETE THE TRANSACTION IN BANGKOK SOME FOREIGN BANKS ALREADY ARE PLANNING TO BOOK OR ARRANGE LOANS IN THAILAND ONE IS SOCIETE GENERALE OF FRANCE WHICH NOW COVERS BANGKOK FROM ITS SINGAPORE BRANCH BERNARD HOUTEKIER THE SINGAPOREBASED GENERAL MANAGER SAYS SOCIETE GENERALE WILL MOVE SOME OF ITS THAIRELATED LOAN PORTFOLIO TO BANGKOK THE BANK HAS ONLY A REPRESENTATIVE OFFICE IN THAILAND BUT WAS GIVEN A BIBF LICENSE TUESDAY WE AREN'T GOING TO SEND ALL OUR PORTFOLIO IN ONE DAY BUT WE'LL DO IT STEP BY STEP MR HOUTEKIER SAYS PROFITABILITY ISN'T THE ONLY ISSUE FOR FOREIGN BANKS IN BRINGING IN NEW BUSINESS TO SUPPORT BANGKOK'S INITIATIVE SOME ALSO ARE HOPING TO GAIN APPROVAL FOR A WIDER RANGE OF BUSINESS THE AUTHORITIES HAVE MADE IT CLEAR THAT A BIBF LICENSE IS A PREREQUISITE TO ANY FURTHER MOVES TO OPEN THE MARKET 9303050105 930305 BUSINESS BRIEF SCI SAYS IT HAS CREDITORS' APPROVAL FOR CHAPTER 11 REORGANIZATION PLAN DENVER SCI TELEVISION INC SAID IT HAS LINED UP ITS CREDITORS' APPROVAL FOR A PREPACKAGED CHAPTER 11 REORGANIZATION THAT WOULD YIELD CONTROL TO INVESTOR RONALD PERELMAN FOR 100 MILLION SCI SAID IT COMPLETED ITS SOLICITATION OF ACCEPTANCES FROM CREDITORS FOR THE PLAN IT SAID THAT LENDERS OF ALL OF ITS 661 MILLION OF BANK DEBT HAVE ACCEPTED THE PLAN AND ABOUT 90 OF ITS SENIOR UNSECURED DEBT HOLDERS WHO VOTED ON THE PLAN GAVE SUPPORT ALL TOLD HOLDERS OF ABOUT 73 OF THE TOTAL 365 MILLION OF SENIOR CLAIMS OUTSTANDING VOTED SUPPORT SCI SAID UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE A COMPANY CONTINUES TO OPERATE BUT HAS COURT PROTECTION AGAINST CREDITORS' LAWSUITS WHILE IT TRIES TO WORK OUT A PLAN FOR PAYING ITS DEBTS A PREPACKAGED PLAN IS WORKED OUT BEFORE THE COURT FILING THE PLAN INCLUDES A 100 MILLION CASH INVESTMENT BY ANDREWS INC A UNIT OF MR PERELMAN'S MACANDREWS & FORBES HOLDINGS INC FOR ABOUT 52 OF THE REORGANIZED COMPANY'S SHARES SENIOR SECURED BANK LENDERS WOULD BE ISSUED NEW SECURED DEBT REPRESENTING ABOUT 825 OF THEIR CLAIMS UNDER CURRENT CREDIT LINES AND WOULD RECEIVE ABOUT 35 OF THE NEW COMPANY'S SHARES SENIOR UNSECURED DEBT HOLDERS WOULD GET STOCK AND WARRANTS THAT TOGETHER WOULD YIELD A 13 FULLY DILUTED STAKE BUT CURRENT SHAREHOLDERS AND HOLDERS OF 259 MILLION OF SUBORDINATED DEBT WOULD GET NOTHING IN THE REORGANIZATION MR PERELMAN MADE THE BID FOR CONTROL OF SCI LAST MONTH SCI WHICH OPERATES TELEVISION STATIONS IN ATLANTA BOSTON CLEVELAND DETROIT MILWAUKEE AND SAN DIEGO ALSO WOULD ACQUIRE A STATION IN TAMPA FLA FOR 165 MILLION FROM GILLETT HOLDINGS GILLETT IS CONTROLLED BY ONE OF SCI'S DEBTHOLDERS LEON BLACK SEPARATELY MR PERELMAN'S MAFCO HOLDINGS INC COMPLETED ITS 180 MILLION PURCHASE OF THE LARGEST US CIGAR COMPANY WHICH IT SOLD ABOUT FOUR YEARS AGO FOR 128 MILLION NEW YORKBASED MAFCO COMPLETED THE PREVIOUSLY ANNOUNCED PURCHASE OF TRIPLE C ACQUISITION CORP THE PARENT OF CONSOLIDATED CIGAR CORP FROM VESTAR CAPITAL PARTNERS A NEW YORK INVESTMENT FIRM THAT HAD A MAJORITY STAKE IN TRIPLE C VESTAR SAID CONSOLIDATED IN FORT LAUDERDALE FLA MARKETS THE DUTCH MASTERS EL PRODUCTO MURIEL AND ANTONIO Y CLEOPATRA BRANDS AMONG OTHERS 9303050104 930305 BUSINESS BRIEF BET HOLDINGS INC FISCAL SECONDQUARTER PROFIT ROSE 14 ON HIGHER SALES CABLETELEVISION PROGRAMMER BET HOLDINGS INC SAID THAT NET INCOME FOR THE FISCAL SECOND QUARTER ROSE 14 BOOSTED BY HIGHER REVENUE FROM ADVERTISING AND CABLE SUBSCRIBERS BET WHICH OWNS BLACK ENTERTAINMENT TELEVISION INC AND OPERATES THE BET CABLE NETWORK SAID NET FOR THE QUARTER ENDED JAN 31 CLIMBED TO 33 MILLION OR 16 CENTS A SHARE FROM 29 MILLION OR 14 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 20 TO 18 MILLION FROM 15 MILLION BOLSTERED BY A 20 GAIN IN ADVERTISING REVENUE AND A 22 RISE IN SUBSCRIBER REVENUE NET FOR THE SIX MONTHS CLIMBED 19 TO 62 MILLION OR 30 CENTS A SHARE FROM 52 MILLION OR 26 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE PERIOD ROSE 26 TO 354 MILLION FROM 282 MILLION AS ADVERTISING REVENUE CLIMBED 24 AND SUBSCRIBER REVENUE ROSE 26 9303050103 930305 MONEYFUND ASSETS FELL BY 853 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS FELL BY 853 BILLION IN THE WEEK ENDED MARCH 3 TO 59381 BILLION FROM 60234 BILLION THE PREVIOUS WEEK THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 623 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 251 BILLION TO 39127 BILLION THE TRADE GROUP SAID ASSETS OF 388 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 136 BILLION TO 30814 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS ROSE BY 115 BILLION TO 8313 BILLION ASSETS OF THE 273 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 1105 BILLION TO 20254 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 222 TAXABLE MONEYMARKET FUNDS FELL BY 1176 BILLION TO 17961 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 7186 MILLION TO 2293 BILLION 9303050102 930305 INTERNATIONAL RUSSIA IS FAILING TO FORTIFY DEMOCRACY AS YELTSIN AND CONGRESS FIGHT AUTHORITARIANS BENEFIT BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW TANYA DIREKTORENKO TEACHES PIANO TO PRODIGIES AT THE PRESTIGIOUS MOSCOW CONSERVATORY IN THE PAST YEAR HER FAITH IN THE GOVERNMENT HAS SHRUNK IN PACE WITH THE SPENDING POWER OF HER SMALL SALARY EVEN HER ENTHUSIASM FOR RUSSIAN PRESIDENT BORIS YELTSIN HAS FADED IN THE FACE OF SOARING INFLATION AND SEEMINGLY ENDLESS POLITICAL WRANGLING I'M PREPARED TO BE PATIENT IF I FELT SOMETHING WERE CHANGING IN THE NECESSARY DIRECTION BUT UNFORTUNATELY I FEEL NO SUCH CHANGE SHE SAYS YELTSIN CAN POUND ON THE TABLE BUT HE CAN'T ACCOMPLISH ANYTHING MR YELTSIN'S PUBLIC STATURE HAS FALLEN STEEPLY FROM THE HEIGHTS IT REACHED ONLY A YEAR AND A HALF AGO WHEN HE STOOD ON TOP OF A TANK AND FACED DOWN A COMMUNISTLED COUP ATTEMPT AGAINST SOVIET LEADER MIKHAIL GORBACHEV NOW EMBROILED IN ENDLESS DISPUTES WITH THE PARLIAMENT THAT HAVE PARALYZED PRODUCTIVE POLITICAL ACTIVITY HE'S LOSING THE POPULAR SUPPORT THAT HAD GIVEN HIM A MANDATE FOR UNPOPULAR ACTIONS ON ONE LEVEL THE DISPUTE IS A BALD FIGHT FOR POWER BETWEEN THE PRESIDENT AND THE CHAIRMAN OF PARLIAMENT RUSLAN KHASBULATOV BUT ON A DEEPER LEVEL THE POLITICAL GRIDLOCK MARKS RUSSIA'S FAILURE TO INSTITUTIONALIZE AND FORTIFY DEMOCRACY FOLLOWING THE COLLAPSE OF THE SOVIET UNION IN DECEMBER 1991 MORE THAN A YEAR LATER RUSSIA STILL LACKS SUCH PILLARS OF DEMOCRACY AS A POSTCOMMUNIST CONSTITUTION A CLEAR DIVISION OF DUTIES WITHIN THE GOVERNMENT A COHERENT LEGAL SYSTEM AND MULTIPARTY POLITICS AS A RESULT THE EXECUTIVE AND THE LEGISLATURE ARE FIGHTING FOR CONTROL OVER POLICY IN THE PROCESS UNDERMINING ECONOMIC REFORMS AND FOREIGN RELATIONS IT'S A MISTAKE TO THINK THAT IT'S A CONFLICT BETWEEN YELTSIN AND KHASBULATOV SAYS ANDREI FYODOROV AN AIDE TO ALEXANDER RUTSKOI THE CONSERVATIVE VICE PRESIDENT IT'S A CONFLICT DEEPER AND MORE SERIOUS ABOUT THE MODEL OF DEVELOPMENT FOR THE COUNTRY WHAT KIND OF SYSTEM WILL EXIST HERE THESE UNANSWERED QUESTIONS SOMETIMES LEAD TO COMICAL CONFUSION WITH CONTRADICTORY DECREES BEING ISSUED BY THE PRESIDENT OR PRIME MINISTER AND THEN REVERSED DAYS LATER BUT THE RESULT IS ANYTHING BUT FUNNY AS THE PEOPLE LOSE FAITH IN THE LEADERSHIP RUSSIA IS BECOMING A LAND OF DISILLUSIONMENT AND THAT MANY RUSSIANS WORRY MAKES THE COUNTRY SUSCEPTIBLE TO AUTHORITARIAN ALTERNATIVES WHICH SEEM TO BE RALLYING MORE SUPPORT EACH DAY I'M MOST AFRAID THAT THE RESULT WILL BE THAT SOME STRONG LEADER WILL COME TO POWER SAYS MS DIREKTORENKO THE PIANO TEACHER A DELICATE 35YEAROLD WHO HAS LARGE EYES AND WHAT DOES A DICTATOR MEAN IN RUSSIA IT MEANS KILLING IT MEANS ANOTHER STALIN NEITHER THE PARLIAMENTARY LEADERSHIP NOR MR YELTSIN WANTS TO SEE THAT SO THEIR IMMEDIATE TASK IS TO AGREE TO A DIVISION OF POWERS AND GET ON WITH REFORMS BUT NO PROGRESS HAS BEEN MADE ON THAT SINCE DECEMBER AT THE LAST MEETING OF THE CONGRESS OF PEOPLE'S DEPUTIES THE NATION'S HIGHEST LEGISLATIVE BODY AT THAT TIME A FRUSTRATED MR YELTSIN UNABLE TO BEND THE CENTRISTS TO HIS WILL IMPETUOUSLY PROPOSED HOLDING A PUBLIC REFERENDUM ON THE QUESTION OF HOW TO DIVIDE POWER BETWEEN THE EXECUTIVE AND LEGISLATURE WHILE THE CONGRESS AGREED TO HOLD THE REFERENDUM IN APRIL IT ALSO SLASHED THE PRESIDENT'S POWERS ALTHOUGH BOTH SIDES AGREED TO THE REFERENDUM NOW NEITHER WANTS TO RISK IT THE VERY WORDING OF THE QUESTIONS COULD AFFECT THE OUTCOME BOTH SIDES ARGUE THE BIGGEST CONCERN IS THAT PUBLIC APATHY WILL MEAN THAT FEWER THAN THE REQUIRED 50 OF VOTERS WILL TURN OUT A FAILURE OF THE REFERENDUM IS MUCH MORE DANGEROUS THAN NOT HOLDING A REFERENDUM AT ALL MR FYODOROV SAYS FOR THAT WOULD AMOUNT TO A DE FACTO VOTE OF NO CONFIDENCE IN ALL OF THE LEADERSHIP BUT NEITHER SIDE WANTS TO BE RESPONSIBLE FOR CALLING IT OFF WITHOUT AN ALTERNATIVE TO OFFER SO THEY ARE SEEKING ANOTHER COMPROMISE SOCALLED CENTRISTS ADVOCATE HOLDING AN EXTRAORDINARY SESSION OF CONGRESS POSSIBLY AS EARLY AS NEXT WEEK ALTHOUGH YESTERDAY LAWMAKERS VOTED AGAINST CALLING ONE THE ISSUE WILL BE TAKEN UP AGAIN TODAY THE CENTRISTS HOPE SUCH A SESSION COULD BE USED TO PUSH THROUGH A COMPROMISE THAT WOULD MAKE THE PRESIDENT A HEAD OF STATE SIMILAR TO ITALY'S OR FINLAND'S WITH THE POWER TO ISSUE DECREES AND SIGN INTERNATIONAL AGREEMENTS MODERATE AIDES TO MR YELTSIN ARE PUSHING TO FREEZE THE BALANCE OF POWER AS IT STANDS TODAY SUCH A DEAL WOULD INCLUDE PLEDGES NOT TO ATTEMPT TO RETURN TO THE STRONGER PRESIDENCY OF A YEAR AGO BUT ALSO WOULD LIMIT ANY FURTHER ENCROACHMENTS ON PRESIDENTIAL POWER BY THE PARLIAMENT THIS GROUP ALSO ADVOCATES AN AGREEMENT GIVING THE GOVERNMENT THE RIGHT TO BLOCK PARLIAMENT FROM TAKING STEPS THAT WOULD INTERFERE WITH THE FIGHT AGAINST INFLATION AND TO CONTROL CONGRESSIONAL SPENDING ABOVE AN AGREED LIMIT IT WON'T CHANGE THE BALANCE OF POWERS BUT THE IDEA IS TO SET RULES FOR THE INTERACTION OF POWERS SAYS SERGEI STANKEVICH COUNSELOR ON POLITICAL AFFAIRS TO MR YELTSIN MAYBE THIS SHIFT OF ATTENTION CAN BRING SUCCESS BUT A COMPROMISE COULD BE EVEN HARDER TO REACH NOW THAN LAST DECEMBER WITH MESSRS YELTSIN AND KHASBULATOV BOTH DISCREDITED WITH THE PUBLIC BY THE PREVAILING CHAOS THE EXTREMIST OPPOSITION HAS STARTED TO PULL TOGETHER MORE STRONGLY TO UNDERCUT THE PRESIDENT'S POWER AND GAIN GREATER LEVERAGE WITHIN THE PARLIAMENT IN DECEMBER BOTH SIDES HAD ROOM TO MANEUVER SAYS AN AIDE TO THE PRESIDENT NOW THEY DON'T HAVE SO MUCH SPACE IF PUSHED TO THE WALL EACH SIDE HAS THE POLITICAL EQUIVALENT OF A NUCLEAR DETERRENT FOR MR YELTSIN IT'S THE CLAIM TO LEGITIMACY AS THE ONLY NATIONALLY ELECTED LEADER WHICH HE COULD USE TO DISBAND THE CONGRESS AND DECLARE PRESIDENTIAL RULE ALTHOUGH THAT'S ILLDEFINED IT'S AN AUTHORITARIAN ALTERNATIVE THAT HE HAS HINTED COULD BE A LAST RESORT FOR THE CONGRESS THE WEAPON OF LAST RESORT COULD BE SIMPLY TO VOTE THE PRESIDENCY OUT OF EXISTENCE EITHER EXTREME HOWEVER IS LIKELY TO LEAD ONLY TO COMPLETE COLLAPSE THAT'S BECAUSE NEITHER PARTY CAN BE SURE OF THE SUPPORT OF THE MILITARY AND THE KGB WHICH WOULD BE ESSENTIAL MR YELTSIN MET BEHIND CLOSED DOORS WEDNESDAY WITH THE GENERAL STAFF PROVOKING AN UNEASY PARLIAMENT TO DEMAND A TRANSCRIPT TO MAKE SURE HE WASN'T SEEKING A PLEDGE OF SUPPORT THUS MR YELTSIN AND THE CONGRESS ARE MORE LIKELY TO AGREE TO CALL EARLY ELECTIONS FOR BOTH THE PRESIDENCY AND THE CONGRESS MUDDLING ALONG UNTIL THEN WITH LITTLE RESOLVED CONGRESSIONAL TERMS ARE UP IN 1995 AND MR YELTSIN'S TERM RUNS UNTIL 1996 BUT CONTINUED MUDDLING IS ONLY LIKELY TO FURTHER ALIENATE VOTERS EVERYTHING WILL GO ON THE SAME WAY FOR SOME MORE MONTHS MR FYODOROV SAYS BUT HERE IS THE RISK THAT PEOPLE WILL TURN TO EXTREME FORCES MANY ANALYSTS DRAW PARALLELS WITH THE WEEKS LEADING UP TO THE AUGUST 1991 COUP ATTEMPT THEY COMPARE MR YELTSIN'S PREDICAMENT NOW TO THAT OF FORMER SOVIET PRESIDENT GORBACHEV AS HE STRUGGLED TO HOLD THE COUNTRY TOGETHER JUST AS IN THOSE DAYS BUT NOW WITHIN RUSSIA THE REGIONS ARE DEMANDING MORE AUTONOMY AND ARE LESS WILLING TO SUPPORT CENTRAL AUTHORITY THE PRESIDENT IS LOSING POWER WITHOUT BEING ABLE TO DO ANYTHING ABOUT IT IN THAT WAY HE'S THE SAME AS GORBACHEV SAYS MIKHAIL KOMISSAR DIRECTOR OF THE INTERFAX NEWS AGENCY BUT YELTSIN IS A VERY DIFFERENT PERSON FROM GORBACHEV PSYCHOLOGICALLY YELTSIN WILL NOT GO CALMLY 9303050101 930305 LETTERS TO THE EDITOR ARGENTINA UPHOLDS FREE MARKET PHILOSOPHY I WAS APPALLED BY CRISTOBAL WILLIAMS'S FEB 19 AMERICAS COLUMN CHEATING THWARTS GROWTH OF CAPITAL MARKETS IN ARGENTINA OPED PAGE IT PRESENTS A HEAVY POLITICAL BIAS AND DOES NOTHING BUT MISINFORM THE READERS I OFFER THE FOLLOWING CLARIFICATIONS ON THE SUBJECT OF CAPITAL MARKETS THE ACHIEVEMENTS OF PRESIDENT CARLOS MENEM'S ADMINISTRATION ARE WELL KNOWN DOMINGO CAVALLO MINISTER OF THE ECONOMY AND MARTIN REDRADO HEAD OF THE SECURITIES AND EXCHANGE COMMISSION HAVE CREATED A NEW REGULATORY FRAMEWORK TO MAKE THE ARGENTINE CAPITAL MARKETS MORE OPEN AND COMPETITIVE AVERAGE DAILY TRADING VOLUME INCREASED FROM 1 MILLION TO 50 MILLION IN THE PAST TWO YEARS A 3 BILLION CORPORATE BOND MARKET EMERGED IN JULY 1991 AFTER THE LAW OF CORPORATE BONDS WAS VOTED BY CONGRESS IN 1992 FOR THE FIRST TIME IN 20 YEARS 35 NEW COMPANIES ISSUED SECURITIES THE COMMENTS ON A GOVERNMENT STOCK PRICE SUPPORT FUND ARE ASTONISHING THE FREE MARKET PHILOSOPHY EMBEDDED IN THE ECONOMIC PROGRAM WOULD MAKE IT IMPOSSIBLE TO BELIEVE THE GOVERNMENT COULD CARRY OUT SUCH A POLICY MR WILLIAMS IGNORES THE ARGENTINE MARKET'S STRIDES TOWARD INCREASED REGULATION IN OCTOBER 1991 THE ARGENTINE SECURITIES AND EXCHANGE COMMISSION RECEIVED FOR THE FIRST TIME AUTHORITY TO RESTRICT TRANSACTIONS BY INSIDERS SOON THEREAFTER NEW GUIDELINES FOR THE PREPARATION OF BALANCE SHEETS BY LISTED COMPANIES WERE IMPOSED NARROWING THE GAP WITH INTERNATIONAL GENERALLY ACCEPTED ACCOUNTING PROCEDURES AND SHORTENING PUBLICATION TIME FOR QUARTERLY REPORTS FROM 70 DAYS TO 35 DAYS AND FOR ANNUAL BALANCE SHEETS FROM 110 DAYS TO 70 DAYS MINIMUM DISCLOSURE REQUIREMENTS HAVE ALSO BEEN EXPANDED IN THE PAST TWO YEARS REGARDING MR WILLIAMS'S CRITICISM OF FINANCIAL STATEMENTS I ONLY WISH TO REMIND HIM THAT ARGENTINA HAS BEEN CHOSEN TO CHAIR THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS DEVELOPMENT COMMITTEE A GROUP THAT INCLUDES WORLDWIDE EMERGING MARKETS AND HAS BEEN ASKED TO DEVELOP A DISCLOSURE FRAMEWORK TO BE ENFORCED BY MEMBER COUNTRIES THERE ARE EVEN ARGENTINE COMPANIES LISTED IN SWITZERLAND AND THE US MR WILLIAMS'S CRITICISM OF THE TAX STRUCTURE SHOWS HIS IGNORANCE ON THIS MATTER DURING THE PAST TWO YEARS THE GOVERNMENT ELIMINATED THE STAMP TAX AND TRANSFER TAX ON SECURITIES AND THE CAPITAL GAINS TAX FOR FOREIGNERS HIS FINAL RECOMMENDATIONS REMAIN AT THE SAME LEVEL AS HIS INITIAL STATEMENTS IE RULES DEMANDING THAT PROFITS BE ENTIRELY PAID OUT AS CASH DIVIDENDS UNLESS THEY EXCEED SOME MINIMUM THE TREND CHOSEN BY ARGENTINA IS THAT OF FREE PRIVATE INITIATIVE YOU CANNOT PUSH COMPANIES TO PAY CASH DIVIDENDS WHEN THEY COULD FOR EXAMPLE REINVEST THEIR PROFITS TO FINANCE PROJECTS THAT WILL BENEFIT SHAREHOLDERS 9303050100 930305 BUSINESS BRIEF COMMUNICATIONS SATELLITE CORP FIRM IS CLEARED BY FCC FOR NEW SHIPBOARD SERVICES COMMUNICATIONS SATELLITE CORP SAID IT RECEIVED FEDERAL COMMUNICATIONS COMMISSION AUTHORIZATION TO PROVIDE NEW SHIPBOARD MOBILE COMMUNICATIONS SERVICES THE PROVIDER OF SATELLITE COMMUNICATIONS SERVICES KNOWN AS COMSAT PLANS TO OFFER VALUEADDED SERVICES INCLUDING NEWS INFORMATION AND ELECTRONIC MAIL SYSTEMS MARITIME TELEPHONE EQUIPMENT AND CELLULAR PHONE SERVICE THE FCC AUTHORIZATION PERMITS COMSAT TO TAP INTO A GROWING MARKET OF USERS OF MARITIME SATELLITEBASED COMMUNICATIONS UNTIL RECENTLY ONLY LARGE SHIPS USED AN INTERNATIONAL SATELLITE COMMUNICATIONS SERVICE INMARSAT COSTS WERE PROHIBITIVE FOR OWNERS OF SMALLER VESSELS WITH THE INTRODUCTION OF THE PORTABLE AND CHEAPER INMARSAT M HARDWARE COMSAT EXPECTS THE MARKET FOR MARITIME SATELLITE COMMUNICATIONS TO GROW FROM ABOUT 25000 USERS TO SEVERAL HUNDRED THOUSAND A COMPANY OFFICIAL SAID 9303050099 930305 LETTERS TO THE EDITOR REAL AMERICANS' KEEP PROFIT MARGINS SLIM WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS IS GENERALLY ACKNOWLEDGED TO BE VERY CAREFUL ABOUT WHAT HE SAYS IN PUBLIC UNDER PROBING BY JUDY WOODWARD ON THE FEB 5 MACNEIL/LEHRER NEWSHOUR HE REPEATEDLY EXPRESSED RELUCTANCE TO REVEAL DETAILS OF PRESIDENT CLINTON'S ECONOMIC PACKAGE IN ADVANCE OF PUBLIC RELEASE BY THE PRESIDENT HOWEVER MR STEPHANOPOULOS CLEARLY OUTLINED THE PLAN FOR A LADDER OF CONTRIBUTION TO DEAL WITH THE BUDGET DEFICIT HE SAID THE GREATEST CONTRIBUTION WAS TO COME BY ELIMINATING GOVERNMENT WASTE AND OVERHAULING GOVERNMENT PROGRAMS AND THAT NEXT ON THE LADDER ARE THE PEOPLE WHO PROFITED OVER THE PAST DECADE SCHEDULED TO CONTRIBUTE LEAST ARE THE REST OF AMERICA THE REAL AMERICANS I WAS ABLE TO TAPE A LATER AIRING OF THE NEWSHOUR FOR PLAYBACK TO CONFIRM WHAT I HEARD FOR THE CURRENT ADMINISTRATION TO DEFINE REAL AMERICANS SO AS TO EXCLUDE PEOPLE WHO PROFITED OVER THE PAST DECADE DESPITE THE YEARS OF HARD WORK AND INVESTMENT AND SACRIFICE THEY MAY HAVE MADE FRIGHTENS AND SADDENS ME A NATIONAL TRAGEDY COULD UNFOLD 9303050098 930305 IBM WILL PAY THE US 148 MILLION TO SETTLE FALSE CLAIMS CHARGE ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP WILL PAY THE US GOVERNMENT 148 MILLION TO SETTLE A POTENTIAL FALSE CLAIMS ACT CIVIL SUIT THE COMPUTER GIANT ADMITTED TO PROVIDING RECONDITIONED OR REMANUFACTURED EQUIPMENT INSTEAD OF NEW GEAR TO THE GOVERNMENT SOME IBM CONTRACTS HAD REQUIRED IT TO SHIP ONLY NEW EQUIPMENT OR TO NOTIFY THE GOVERNMENT IF IT INTENDED TO SHIP ANYTHING ELSE ACCORDING TO THE JUSTICE DEPARTMENT IBM ALSO SETTLED ALLEGATIONS THAT IT VIOLATED THE BUY AMERICA ACT OR THE TRADE AGREEMENTS ACT BY MISIDENTIFYING THE COUNTRY OF ORIGIN OF VARIOUS PRODUCTS SOLD TO THE US ACCORDING TO THE GOVERNMENT IN 1987 IBM ALERTED THE GOVERNMENT THAT IT MIGHT NOT HAVE FULFILLED ITS CONTRACTUAL OBLIGATIONS AND IT COOPERATED IN A SUBSEQUENT THREEYEAR INVESTIGATION THE GOVERNMENT SAID IT DIDN'T UNCOVER ANY EVIDENCE OF A DELIBERATE SCHEME TO SELL INFERIOR GOODS BUT SAID ITS INQUIRY REVEALED INADEQUATE MONITORING SYSTEMS IBM WHICH HAS SINCE REVAMPED ITS PROCEDURES SAID ITS MISTAKES WERE INADVERTENT AND RESULTED FROM ADMINISTRATIVE OVERSIGHT THE COMPANY SAID IT DOESN'T THINK THE GOVERNMENT SUFFERED ANY ACTUAL DAMAGE FROM ITS ACTIONS BUT WILL PAY UP TO AVOID A LENGTHY LAWSUIT AN IBM SPOKESWOMAN SAID THE MISIDENTIFIED SHIPMENTS MADE UP MUCH LESS THAN 5 OF IBM'S SALES TO THE GOVERNMENT UNDER THE RELEVANT CONTRACTS 9303050097 930305 BUSINESS BRIEF NEWMONT MINING CORP SUBSIDIARY'S GOLD RESERVES DECLINED 33 DURING 1992 NEWMONT GOLD CO DENVER SAID ITS PROVEN AND PROBABLE GOLD RESERVES DECLINED 33 TO 195 MILLION OUNCES AT THE END OF 1992 FROM 201 MILLION OUNCES AT THE END OF 1991 NEWMONT GOLD 901OWNED BY NEWMONT MINING CORP SAID IT ADDED TWO MILLION OUNCES OF NEW RESERVES DURING 1992 AND DEPLETED 22 MILLION OUNCES TO PRODUCE THE 16 MILLION OUNCES IT SOLD FROM ITS FIVE MINES THE REMAINING DIFFERENCE RESULTED FROM DECLASSIFYING 600000 OUNCES OF LOWGRADE MATERIAL THAT PREVIOUSLY HAD BEEN CARRIED IN RESERVES AND MODIFYING SOME MODELS AND MINE PLANS NEWMONT GOLD'S 1992 YEAREND RESERVES WERE CALCULATED ON A GOLD PRICE OF 400 AN OUNCE THE COMPANY SAID THAT IF GOLD PRICES WERE TO FALL TO 300 AN OUNCE THE RESERVES WOULD DECLINE BY 22 AS IT BECAME LESS ECONOMICAL TO MINE SOME RESERVES AN INCREASE IN GOLD PRICES TO 500 AN OUNCE CONVERSELY WOULD CAUSE A 16 INCREASE IN RESERVES NEWMONT GOLD SAID 9303050096 930305 BUSINESS BRIEF MEDIMMUNE INC MERCK TO CONTINUE RESEARCH COLLABORATION ON HIV DRUG MEDIMMUNE INC SAID MERCK & CO HAS DECIDED AFTER FURTHER REVIEW TO CONTINUE ITS RESEARCH COLLABORATION WITH MEDIMMUNE ON A POSSIBLE TREATMENT FOR HIV INFECTION BUT THE GAITHERSBURG MD BIOTECHNOLOGY COMPANY SAID IT AGREED TO MODIFY THE TERMS OF ITS NOVEMBER 1991 AGREEMENT WITH THE BIG PHARMACEUTICAL MAKER UNDER THE REVISED AGREEMENT MERCK WILL CONTINUE TO FUND ITS OWN INTERNAL DEVELOPMENT OF THE TREATMENT MEDI 488 BUT WILL DEFER FUNDING FURTHER RESEARCH BY MEDIMMUNE ON NEW ANTIBODIES MERCK MAY RESUME FUNDING MEDIMMUNE RESEARCH IF THE TREATMENT COMPLETES PHASE I CLINICAL TRIALS MEDIMMUNE SAID MEDI 488 IS A HUMAN MONOCLONAL ANTIBODY IN EARLY STAGES OF EVALUATION FOR ITS POTENTIAL TO PREVENT INFECTION BY HIV THE VIRUS THAT CAUSES AIDS AS PREVIOUSLY REPORTED MEDIMMUNE SAID JAN 4 THAT MERCK WAS REVIEWING ITS FURTHER INVOLVEMENT IN THE RESEARCH BECAUSE OF UNEXPECTED RESEARCH RESULTS FROM THE TREATMENT 9303050095 930305 BUSINESS BRIEF BLUE CROSS & BLUE SHIELD NATIONAL GROUP SAYS COURT CLEARS WEST VIRGINIA ACCORD BLUE CROSS & BLUE SHIELD ASSOCIATION IN CHICAGO SAID IT RECEIVED COURT APPROVAL FOR ITS PAYMENT OF 86 MILLION TO SETTLE LAWSUITS RESULTING FROM THE FAILURE OF BLUE CROSS & BLUE SHIELD OF WEST VIRGINIA INC ACCORDING TO COURT DOCUMENTS FILED LAST WEEK THE SETTLEMENT WILL BE RELEASED FROM ESCROW ACCOUNTS FOR DISTRIBUTION TO 13 HOSPITALS THAT SUED THE NATIONAL BLUE CROSS ASSOCIATION IN 1991 AND TO THE ESTATE OF THE FAILED WEST VIRGINIA BLUE CROSS PLAN IN RETURN THE HOSPITALS AND ESTATE WILL DROP ALL CLAIMS AGAINST THE NATIONAL ASSOCIATION THE HOSPITALS ALSO WILL DROP THEIR CLAIMS AGAINST THE WEST VIRGINIA PLAN'S ESTATE BUT THE HOSPITALS SAID THEY'LL CONTINUE TRYING TO COLLECT A SEPARATE 224 MILLION VERDICT AGAINST BLUE CROSS & BLUE SHIELD MUTUAL OF OHIO FOR ITS ACTIONS IN THE WEST VIRGINIA PLAN'S FAILURE 9303050094 930305 HEALTH MANY DRUGGISTS DON'T WELCOME COUNSELING LAW BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MANY PHARMACISTS LONG SOUGHT A FEDERAL LAW GIVING THEM A GREATER ROLE IN PATIENT CARE NOW THEY HAVE IT BUT MANY AREN'T SURE THEY WANT IT THE LAW WHICH WENT INTO EFFECT JAN 1 REQUIRES PHARMACISTS TO TAKE MEDICAL AND DRUG HISTORIES OF CUSTOMERS TO SCREEN THEM FOR PROBLEMS SUCH AS ADVERSE INTERACTIONS WITH OTHER PRESCRIPTION AND OVERTHECOUNTER DRUGS THE PHARMACIST MUST ALSO OFFER TO COUNSEL CUSTOMERS ON HOW TO TAKE THE MEDICATION SIDE EFFECTS AND WHAT TO DO IF A DOSE IS MISSED OR A PROBLEM ARISES THE FEDERAL LAW APPLIES TO MEDICAID RECIPIENTS BUT MOST STATES HAVE EXPANDED THE REQUIREMENT TO INCLUDE ALL PATIENTS THE NEW LAW IS EXPECTED TO IMPROVE HEALTH CARE BECAUSE PATIENTS WILL BETTER UNDERSTAND AND FOLLOW MEDICATION DIRECTIONS AND THROUGH THE INITIAL SCREENING PHARMACISTS CAN PREVENT DRUGINTERACTION PROBLEMS WHICH SOMETIMES LEAD TO HOSPITALIZATIONS AND EVEN DEATH BUT THE LAW DOESN'T SAY PHARMACISTS SHOULD GET PAID FOR THEIR SERVICES AND THAT RANKLES THEM MEDICAID AND MOST INSURANCE COMPANIES THAT COVER DRUG COSTS WON'T PAY PHARMACISTS ANY MORE THAN THEY HAVE BEEN PAYING EVEN THOUGH MANY PHARMACISTS HAVE HAD TO HIRE MORE HELP AND BUY COMPUTER SOFTWARE TO COMPLY WITH THE NEW LAW THOSE ADDITIONAL COSTS MAY BE PASSED ALONG TO CONSUMERS PHARMACISTS ALSO FEAR THE NEW LAW WILL PROMPT LAWSUITS AGAINST THEM ASIDE FROM THAT THE PENALTIES FOR FAILING TO PROPERLY SCREEN AND COUNSEL PATIENTS CAN BE SEVERE A PHARMACY CAN BE BOOTED FROM THE MEDICAID PROGRAM OR CAN LOSE ITS LICENSE THERE'S BEEN A MIXED REACTION TO THE LAW AMONG PHARMACISTS SAYS CARMEN CATIZONE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF BOARDS OF PHARMACY SOME ARE VERY EAGER SOME ARE SCARED TO DEATH SOME THINK IT'S THE BIGGEST MISTAKE THAT COULD HAVE HAPPENED IN PHARMACY PHARMACISTS HAVE LONG ARGUED THAT THEIR EXPERTISE ON DRUGS IS UNDERUTILIZED AND HAVE PUSHED THEIR FELLOW MEDICAL PROFESSIONALS AND POLITICIANS TO INCLUDE THEM IN THE PATIENTCARE PROCESS BUT THEY WERE CAUGHT OFF GUARD BY THE NEW REQUIREMENTS CONTAINED IN THE OMNIBUS BUDGET RECONCILIATION ACT OF 1990 PRESIDENT BUSH'S MORATORIUM ON NEW REGULATIONS PUT INTO QUESTION WHETHER THE COUNSELING PORTION OF THE LAW WOULD BE IMPLEMENTED BUT IN NOVEMBER THE FEDERAL GOVERNMENT ISSUED REGULATIONS REQUIRING THAT PHARMACISTS SCREEN AND COUNSEL PATIENTS AS OF THE BEGINNING OF THE YEAR PHARMACY GROUPS COMPLAIN THAT BESIDES BEING GIVEN SHORT NOTICE THE REGULATIONS REQUIRE FAR MORE THAN THE ORIGINAL LAW INTENDED THE LAW RELIED ON THE PHARMACISTS' JUDGMENT TO DETERMINE WHAT SHOULD BE COVERED IN A COUNSELING SESSION BUT THE RECENTLY ISSUED REGULATIONS SPELL OUT WHAT TOPICS THAT MUST BE RUN THROUGH EACH TIME A CUSTOMER FILLS A PRESCRIPTION SAYS JOHN RECTOR GENERAL COUNSEL OF THE NATIONAL ASSOCIATION OF RETAIL DRUGGISTS WHICH PLANS TO CHALLENGE THE REGULATIONS THE GOVERNMENT ESTIMATED THE COST OF PROVIDING COUNSELING SERVICES AT 1 TO 2 PER PRESCRIPTION A FIGURE THE INDUSTRY SAYS IS TOO LOW THE RETAIL DRUGGISTS' ASSOCIATION FIGURES THE COST OF SCREENING AND COUNSELING IS AT LEAST 250 A PRESCRIPTION AT THAT RATE THE COST OF FULFILLING THE REQUIREMENTS FOR MEDICAID PATIENTS ALONE WOULD COST THE AVERAGE INDEPENDENT PHARMACY ABOUT 8400 A YEAR NEARLY A THIRD OF ITS ANNUAL NET PROFIT BEFORE TAX PHARMACY GROUPS PLAN TO REQUEST THAT THE FEDERAL GOVERNMENT PAY PHARMACISTS FOR THEIR COGNITIVE SERVICES ARGUING THAT SUCH ADVICE PREVENTS UNNECESSARY HEALTHCARE COSTS INCURRED FROM DRUG INTERACTIONS OR MISUSE A GOVERNMENT STUDY WILL EVALUATE THE IMPACT OF COUNSELING ON QUALITY OF CARE AND WHETHER PAYING PHARMACISTS IS JUSTIFIED THE NEW REGULATIONS HAVE ALSO IRKED PHYSICIANS THE AMERICAN MEDICAL ASSOCIATION IS SEEKING TO HAVE DOCTORS CONTROL WHAT TOPICS PHARMACISTS COVER DURING COUNSELING AND IT WANTS PHARMACISTS WHO FIND POSSIBLE DRUG INTERACTION OR OTHER RISKS IN A PRESCRIPTION TO NOTIFY THE PHYSICIAN BEFORE TELLING THE PATIENT ALTHOUGH THERE IS RESISTANCE IN SOME QUARTERS MANY PHARMACISTS VIEW COUNSELING AS A PROFESSIONAL RESPONSIBILITY AND MANY HAVE ALREADY BEEN DOING IT SAYS WILLIAM HERMELIN DIRECTOR OF GOVERNMENT AFFAIRS OF THE AMERICAN PHARMACEUTICAL ASSOCIATION THE PROFESSIONAL GROUP REPRESENTING PHARMACISTS CALVIN KNOWLTON A PHARMACIST IN LUMBERTON NJ AND A PROFESSOR AT THE PHILADELPHIA COLLEGE OF PHARMACY AND SCIENCE SAYS SOME PHARMACY OWNERS MAY BALK AT THE CHANGES BECAUSE OF THE ADDITIONAL COSTS INVOLVED BUT POINTING TO THE POTENTIAL FOR REDUCING ADVERSE DRUG INTERACTIONS AND IMPROVING DRUG USAGE HE SAYS I THINK THERE'S A BIGGER PICTURE HERE IT'S A PUBLIC HEALTH CONCERN AND SOME CHAIN DRUGSTORES HAVE EMBRACED COUNSELING AS A MARKETING STRATEGY TO KEEP CUSTOMERS FROM DEFECTING TO DISCOUNT MAILORDER DRUG COMPANIES AND OTHER COMPETITION AT REVCO DS INC PHARMACISTS ARE TRAINED TO IMPROVE COMMUNICATION SKILLS AND LAST YEAR WHEN THE FOOD AND DRUG ADMINISTRATION WARNED OF PROBLEMS WHEN THE ALLERGY MEDICATION SELDANE IS TAKEN WITH CERTAIN ANTIBIOTICS REVCO PHARMACISTS CALLED 3000 CUSTOMERS WHO HAD BEEN PRESCRIBED THE DRUGS IN QUESTION WITHIN THE PAST SIX MONTHS AND ALERTED THEM TO THE PROBLEM SAYS A REVCO OFFICIAL MELVILLE CORP'S CONSUMER VALUE STORES WHICH OPERATES CVS AND PEOPLES DRUGSTORES BEGAN COUNSELING YEARS AGO AND HAS FOUND THAT THE PHARMACYCUSTOMER RELATIONSHIP IS A STRONG TIE TO THE STORE AND A STRONG BARRIER TO LEAVING SAYS THOMAS RYAN CVS EXECUTIVE VICE PRESIDENT OF OPERATIONS STILL CVS OPPOSED THE FEDERAL LAW REQUIRING COUNSELING THE PAPERWORK INVOLVED WILL REQUIRE HIRING MORE PHARMACY STAFFERS MR RYAN SAYS INDIVIDUAL STATE REQUIREMENTS VARY FURTHER COMPLICATING MATTERS FOR COMPANIES LIKE CVS WHICH OPERATES IN 14 STATES 9303050093 930305 USING TEAM BUILDERS' MAY BECOME COMMON IN CLINTON ADMINISTRATION BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TO EXPRESS THEIR DEEPEST FEELINGS TO SAY THINGS THEY HAVE NEVER BEEN ABLE TO SAY BEFORE MEMBERS OF BILL CLINTON'S CABINET HAVE BEEN EXPOSED TO TEAM BUILDERS CALLED FACILITATORS IT'S A BABYBOOMER THING AND IT MAY BECOME A NORMAL PART OF DOING BUSINESS FOR THIS NEW ADMINISTRATION AT MR CLINTON'S FIRST CABINET MEETING A RETREAT IN THE WOODS AT CAMP DAVID TWO PROFESSIONAL FACILITATORS WERE BROUGHT IN BY PRESIDENTIAL INVITATION TO PUT THE NEW ADMINISTRATION IN TOUCH WITH ITSELF CABINET MEMBERS WERE ASKED TO BRING THEIR RESUMES AND BE PREPARED TO TALK ABOUT THE PASSIONS IN THEIR LIVES AT THE SATURDAYNIGHT SESSION THEY WERE ALSO ASKED BY THE FACILITATORS TO TALK ABOUT SIGNIFICANT PERSONAL EVENTS THEY HADN'T MENTIONED IN THEIR RESUMES MR CLINTON GOT THE BALL ROLLING BY SAYING HE HAD BEEN FAT AS A BOY AND THE OTHER KIDS TEASED HIM KINDERSPIEL SNORTS LEONARD HIRSCH WHO WAS DIRECTOR OF ORGANIZATIONAL DEVELOPMENT IN JIMMY CARTER'S WHITE HOUSE THAT'S CHILD'S PLAY IN GERMAN AND MR HIRSCH AND OTHERS SPECIALIZING IN MANAGEMENT DEVELOPMENT DEPLORE THE TOUCHYFEELY ENCOUNTERS THAT MR CLINTON AND SOME MEMBERS OF HIS ADMINISTRATION SEEM TO FAVOR BUT THIS IS A NEW KIND OF ADMINISTRATION A BABYBOOMER BUNCH WITH A PRESIDENT WHO LIKES TO HUG PEOPLE SOME OF THE CABINET PEOPLE ATTENDING THE SESSION THOUGHT IT WAS FUN IT WAS A GREAT SUCCESS SAYS LENNOX JOSEPH PRESIDENT OF THE NTL INSTITUTE FOR THE APPLIED BEHAVIORAL SCIENCE NTL SUPPLIED THE LEAD FACILITATOR CAROLYN J LUKENSMEYER WHO WORKS FOR THE ALEXANDRIA VA FIRM OUT OF HER HOME IN CLEVELAND MR JOSEPH SAYS HE EXPECTS MR CLINTON AND HIS CABINET WILL HOLD ANOTHER SESSION IN FOUR MONTHS AND MEET REGULARLY EVERY SIX MONTHS AFTER THAT SOME PEOPLE THINK ALL FACILITATORLED SESSIONS PARTICULARLY WHEN THEY INVOLVE EXPERIENCED CABINET OFFICIALS ARE SUSPECT OF ALL THE THINGS I'VE HEARD ABOUT THESE GUYS THIS SCARES ME THE MOST SAYS DEMOCRATIC STRATEGIST GREG SCHNEIDERS BUT EVEN AMONG THE RANKS OF THE FOLKS DOING THE FACILITATING THERE IS A SPLIT OPINION ON WHETHER MR CLINTON IS GOING ABOUT IT THE RIGHT WAY THE RAP IS THAT MR CLINTON IS SHOWING HIS AGE HE'S OUT OF DATE WHAT WE DO NOW IN GROUPTRAINING SESSIONS ISN'T AS PERSONAL AS IT USED TO BE SAYS NANCY BRENNY MARKETING DIRECTOR FOR WILSON LEARNING CORP IN MINNEAPOLIS A LEADING MANAGEMENTTRAINING ORGANIZATION AND ONE OF NTL INSTITUTE'S COMPETITORS WE TRY TO GET PEOPLE TO UNDERSTAND HOW THEY CAN USE THEIR OWN PERSONAL CHARACTERISTICS TO CONTRIBUTE TO THE GROUP IN THE PAST IT WAS MORE ABOUT GETTING TO KNOW YOUSELF MR HIRSCH WHO TRIED TO SOLVE MUNDANE ORGANIZATIONAL PROBLEMS IN THE WHITE HOUSE SAYS THE TREND NOW IS TO SIMPLY ASK 'WHAT'S THE PROBLEM' AND THEN PUT PEOPLE TOGETHER TO TRY TO SOLVE IT THERE MAY BE AN EXPLANATION FOR THE TOUCHYFEELY SESSIONS THE CLINTON PEOPLE SEEM TO BE FAVORING THEY ARE LEADINGEDGE BABY BOOMERS BORN IN THEIR GENERATION'S OPENING YEARS AND SO MANY OF THEM MAY STILL FEEL COMFORTABLE IN THESE OLDFASHIONED CONFESSIONAL SETTINGS MR CLINTON HIMSELF HAS BEEN ATTENDING RENAISSANCE WEEKENDS AT HILTON HEAD SC FOR A DECADE WHERE BABYBOOMER PROFESSIONALS TAKE PART IN DOZENS OF PANEL DISCUSSIONS EACH OF WHICH EVEN THE SCHEDULED JOGGINGS ON THE BEACH IS PROVIDED WITH A FACILITATOR WITH MR CLINTON BREAKING THE GROUND OTHERS IN THE ADMINISTRATION ARE LIKELY TO FOLLOW HENRY CISNEROS FOR EXAMPLE HE'S THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT VOWS HE WILL TAKE HIS SENIOR MANAGERS ON A RETREAT TO EXPLORE THEIR INNER FEELINGS HE CALLS IT REINVENTING HUD THE 47YEAROLD MS LUKENSMEYER THE CAMP DAVID FACILITATOR WHO STARTED IT ALL WOULDN'T RETURN SEVERAL TELEPHONE CALLS IN THE LATE 1980S SHE SERVED AS CHIEF OF STAFF TO OHIO GOV RICHARD CELESTE AND LED SEVERAL RETREATS FOR MR CELESTE'S CABINET WHEN THE CELESTE ADMINISTRATION ENDED IN 1990 MS LUKENSMEYER WROTE A LETTER TO HER FRIENDS EXPRESSING REGRETS AT GIVING UP POWER SHE REGRETTED SHE SAID THAT SOME PEOPLE DIDN'T SHARE WHAT SHE CALLED HER EFFORTS TO ARTICULATE THE VISION OF THE CELESTE ADMINISTRATION PEOPLE WHO WERE NOT ABLE TO WORK ON AN EMPOWERMENT MODEL DRAINED OFF ENERGY FROM THE COLLECTIVE DIRECTION THAT WE STOOD FOR BUT THOSE DISAPPOINTMENTS FADE IN THE FACE OF THE LEGACY THAT REMAINS USING PROFESSIONALS TO MAKE GROUP MEETINGS RUN SMOOTHER ISN'T UNKNOWN IN THE FEDERAL GOVERNMENT BUT THE RECORD MAY NOT BE ENCOURAGING THE LEADERS IN THE FIELD ARE THE INTERNAL REVENUE SERVICE AND THE ARMY 9303050092 930305 DELTA SMELT IS PLACED ON ENDANGERED LIST BY WILDLIFE SERVICE MOVE IS A BLOW TO AGRICULTURE IN THE ARID CALIFORNIA AREA WHICH IS THIS FISH'S HOME BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE TINY DELTA SMELT HAS BEEN DECLARED A THREATENED SPECIES DEALING ANOTHER BLOW TO FARMING'S HISTORIC LOCK ON WATER IN CALIFORNIA THE US FISH & WILDLIFE SERVICE RULED YESTERDAY THAT THE SMELT A THREEINCH BLUEGREEN FISH THAT ONLY LIVES IN ONE ZONE OF THE BRACKISH WATER NEAR WHERE CALIFORNIA'S BIG SACRAMENTO AND SAN JOAQUIN RIVERS JOIN FORCES AND FLOW TO THE SEA IS IN DANGER OF EXTINCTION THE CREATURE HAS BEEN THREATENED BY THE COMBINATION OF HEAVY WATER IRRIGATION BY FARMERS THE RUNOFF OF PESTICIDES AND A PROLONGED DROUGHT THE AGENCY SAID THE SMELT'S POPULATION WHICH ONCE NUMBERED IN THE MANY MILLIONS HAS DROPPED 90 OVER THE PAST 20 YEARS NO APPARENT RECOVERY IS OCCURRING SAID MARVIN PLENERT THE AGENCY'S PACIFIC REGIONAL DIRECTOR UNDER THE ENDANGERED SPECIES ACT DESIGNATION OF A SPECIES AS THREATENED REQUIRES THAT ANY PRACTICES THAT HARM THE SPECIES MUST BE ELIMINATED OR ALTERED SO THAT IT NO LONGER MENACES THE CREATURE'S LONGTERM SURVIVAL IN THE CASE OF THE SMELT PROTECTIONS ARE SURE TO MEAN AGRICULTURE WILL HAVE LESS ACCESS TO DELTA WATER IN THE FUTURE THE ACTION HAS LITTLE IMMEDIATE IMPACT BECAUSE RECENT HEAVY RAINS AND EARLIER AGREEMENTS BY WATER DELIVERERS TO RETAIN SOME WATER FOR SMELT PROTECTION HAVE ALLEVIATED THE THREAT IN THE SHORT TERM STILL IT IS ANOTHER BLOW TO TRADITIONAL WATER PRACTICES IN CALIFORNIA AND BY IMPLICATION THE REST OF THE WEST WHERE FARMERS HAVE LONG GUZZLED A DISPROPORTIONATE AMOUNT OF THE ARID REGION'S WATER DESPITE THEIR DIMINISHING ROLE IN THE REGIONAL ECONOMY BECAUSE OF THE THREAT IT POSED TO CALIFORNIA'S LARGE POLITICALLY POTENT POPULATION OF GROWERS THE EFFORT TO GRANT THE SMELT PROTECTIONS PROVOKED ONE OF THE FIERCEST ATTACKS EVER SEEN ON FEDERAL WILDLIFE REGULATORS' PLAN TO CONSIDER A SPECIES FOR PROTECTION SINCE 1991 WHEN FEDERAL BIOLOGISTS TURNED THEIR ATTENTION TO SMELT FARM INTERESTS HAVE SPENT MILLIONS OF DOLLARS TRYING TO DEBUNK STUDIES INDICATING ITS PROBLEMS AND ON LOBBYING FEDERAL OFFICIALS AND CONGRESS GROWERS ENLISTED FORMER VICE PRESIDENT DAN QUAYLE'S COUNCIL ON COMPETITIVENESS AN INSTRUMENT OF ATTACKS ON GOVERNMENT REGULATION IN THE FIGHT TOO GROWERS MAINTAIN THAT PROTECTING THE SMELT WILL CAUSE HUGE ECONOMIC LOSSES FOR FARMERS A CLAIM DISPUTED BY ENVIRONMENTALISTS AND MANY ECONOMISTS 9303050091 930305 THE AMERICAS GUATEMALAN PRIZE WINNER HAS IGNOBLE PAST BY WILLIAM RATLIFF THE WORLD HAS ALMOST SAINTED RIGOBERTA MENCHU THE GUATEMALAN INDIAN WHO WON THE 1992 NOBEL PEACE PRIZE MEDIA PERSONALITIES HUMANRIGHTS AND PEACE ACTIVISTS ALL SEEM TO AGREE WITH THE NOBEL COMMITTEE CITATION WHICH READS TODAY RIGOBERTA MENCHU STANDS OUT AS A VIVID SYMBOL OF PEACE AND RECONCILIATION ACROSS ETHNIC CULTURAL AND SOCIAL DIVIDING LINES IN HER OWN COUNTRY ON THE AMERICAN CONTINENT AND IN THE WORLD BUT IN CRITICAL WAYS THE BLANKET OF PRAISE AND ADMIRATION IS UNDESERVED HER TRAGICALLY DIFFICULT LIFE HER CURRENT WORK TODAY ON BEHALF OF PEACE IN GUATEMALA EVEN HER PLEA TO FIDEL CASTRO TO RELEASE SOME OF CUBA'S POLITICAL PRISONERS DO NOT ALTER THE FACT THAT SHE DOES NOT HAVE ANYTHING LIKE THE MORAL AUTHORITY HER BACKERS CLAIM FOR HER MS MENCHU'S CONQUEST OF THE NOBEL COMMITTEE AND WORLD OPINION DEMONSTRATES THAT THE INORDINATE INFLUENCE OF MARXIST INTELLECTUALS IS NOT OVER AND THAT THE GULLIBLE WILL ALWAYS BE WITH US OF COURSE TO SAY THIS OPENS ONE TO THE CHARGE OF BEING IN FAVOR OF GUATEMALA'S RIGHTWING GOON SQUADS SO MUCH FOR SUBTLETIES BECAUSE TRUTH OFTEN RUNS AFOUL OF POLITICAL ORTHODOXY MS MENCHU HAS TWO SERIOUS PROBLEMS FIRST SHE DOES NOT SPEAK FOR ALL THE INDIANS OF THE AMERICAN CONTINENT AS THE EDITOR OF HER AUTOBIOGRAPHY WAS FIRST TO CLAIM A DECADE AGO SECOND MANY OF HER PAST ACTIVITIES CONTRADICT THE VALUES FOR WHICH THE AWARD IS GIVEN DURING THE 1980S MS MENCHU SUPPORTED INDIGENOUS RIGHTS SELECTIVELY ON POLITICAL GROUNDS THE MOST BLATANT EXAMPLE OF THIS WAS HER ACTIVE SUPPORT OF SANDINISTA REPRESSION AGAINST NICARAGUA'S ATLANTIC COAST INDIGENOUS PEOPLE IN NOVEMBER IN ONE OF THOSE RARE MEDIA REFERENCES TO THIS MATTER NEWSWEEK MAGAZINE PUT THE RIGHT QUESTION TO MS MENCHU MISKITO INDIANS FROM NICARAGUA'S ATLANTIC COAST SAY YOU SUPPORTED THE SANDINISTAS AGAINST THEM IN THE 1980S IS YOUR SUPPORT FOR INDIGENOUS PEOPLE CONSISTENT MS MENCHU ACKNOWLEDGED THE FACT THAT SHE HAD OPPOSED THE MISKITO CAUSE BUT THEN BLEW A SMOKE SCREEN THAT PRESUMABLY JUSTIFIED HER ACTION AND SATISFIED THE QUESTIONER WHY DO PEOPLE GET SO WORKED UP ABOUT THE MISKITOS SHE ASKED WHEN THERE ARE OTHER INDIANS ON NICARAGUA'S ATLANTIC COAST TO WORRY ABOUT SHE WORKED FOR NATIONAL UNITY NOT ONE GROUP BUT THE SANDINISTAS IMPOSED UNITY IN A WAY THAT REQUIRED THE REPRESSION OF ALL INDIGENOUS GROUPS ON THE ATLANTIC COAST THE MISKITOS SUMOS RAMAS AND THE CREOLES AS MISKITO LEADER ARMSTRONG WIGGENS PUTS IT THE SANDINISTAS LOOKED UPON INDIGENOUS PEOPLE AS INTERFERING WITH THE INTERNATIONALIZATION OF MARXISMLENINISM FOR MS MENCHU WHEN IT CAME TO OVERRIDING POLITICAL CONCERNS INDIGENOUS NICARAGUANS WERE JUST AS EXPENDABLE AS BIG BUSINESSMEN OR ANY OTHER POLITICAL ENEMY IN FACT EVEN MS MENCHU'S SUPPORT FOR GUATEMALA'S MARXIST GUERRILLAS DESCRIBED IN SOME DETAIL IN HER AUTOBIOGRAPHY WAS CONTRARY TO THE WISHES OF MANY OF HER OWN COUNTRY'S INDIANS WHILE A NATIONAL PUBLIC RADIO REPORTER ANNOUNCED IN NOVEMBER THAT HER STORY IS IN MANY WAYS THE STORY OF GUATEMALA'S INDIANS MOST GUATEMALAN INDIAN CHIEFS OPPOSED HER COOPERATION WITH THE GUERRILLAS AND MANY INDIANS WHO OPPOSED THE GUERRILLAS SHE SUPPORTED PAID WITH THEIR LIVES MS MENCHU'S AUTOBIOGRAPHY I RIGOBERTA MENCHU EDITED BY ELIZABETH BURGOSDEBRAY WIFE OF CASTRO/GUEVARA HAGIOGRAPHER REGIS DEBRAY WAS PUBLISHED IN 1983 AND HAS BEEN DISPUTED AS INACCURATE BY GUATEMALAN REVIEWERS HOWEVER EVEN IF WE TAKE HER NARRATION AS COMPLETELY ACCURATE THERE ARE MANY ACTIVITIES IN HER CAREER AS A RESISTANCE FIGHTER THAT SHOULD DISQUALIFY HER AS A HUMANIST AND PEACE ADVOCATE IN ONE SECTION SHE TELLS HOW SHE COLDLY PLOTTED THE DEATH OF A 90YEAROLD WOMAN SHE THOUGHT HAD RATTED TO THE MILITARY IN ANOTHER PASSAGE SHE JUSTIFIES WOMEN ACTIVISTS THROWING LIME INTO THE EYES OF POLICEMEN AND SHE WAS ADAMANT IN HER CALL FOR SUPPORTING MARXIST GUERRILLAS IN ORDER TO OVERTHROW THE GOVERNMENT MS MENCHU COULD RISE ALMOST TO THE LEVEL OF THE IMAGE THAT HAS BEEN BUILT AROUND HER WERE SHE TO ACKNOWLEDGE OPENLY THE ERRORS OF HER PAST AND APOLOGIZE TO THE FELLOW INDIGENOUSRIGHTS ACTIVISTS WHOM SHE HAS BETRAYED IF MS MENCHU HAS REALLY GROWN BEYOND NARROW POLITICAL DEFINITIONS AND ADOPTED A BROADER SENSE OF JUSTICE SHE SHOULD HAVE THE MORAL FORTITUDE TO SAY SOMETHING LIKE I MADE A TRAGIC MISTAKE WHEN I SUPPORTED THE BRUTALITIES AGAINST INDIGENOUS GROUPS IN NICARAGUA DURING THE 1980S I APOLOGIZE FOR THE GRIEF I CAUSED PEOPLE IN NICARAGUA AND IN GUATEMALA AS WELL BY BLINDLY SUPPORTING ACTIONS THAT WERE OFTEN AS BRUTAL AS THOSE OF THE OPPRESSORS THEY VANQUISHED WILL SHE HAVE THE PERSONAL COURAGE TO SAY SOMETHING ALONG THESE LINES WILL ANY OF HER ADMIRERS PRESS HER TO COME CLEAN LET'S HOPE SO FOR NOT ONLY WOULD SUCH AN ADMISSION MAKE HER MORE WORTHY OF THE NOBEL PEACE PRIZE BUT IT WOULD ALSO HELP ENCOURAGE THE PROCESS OF RECONCILIATION NOW TAKING PLACE THROUGHOUT CENTRAL AMERICA MR RATLIFF A SENIOR RESEARCH FELLOW AT THE HOOVER INSTITUTION IS COAUTHOR WITH ROGER MIRANDA OF THE CIVIL WAR IN NICARAGUA TRANSACTION PUBLISHERS 9303050090 930305 BUSINESS BRIEF STURM RUGER & CO NET FOR 4TH QUARTER AND YEAR JUMPED ON DEMAND FOR GUNS STURM RUGER & CO REPORTED EARNINGS INCREASES OF 40 AND 52 RESPECTIVELY FOR THE FOURTH QUARTER AND 1992 THE COMPANY ATTRIBUTED THE RESULTS TO INCREASED DEMAND FOR THE FIREARMS IT MANUFACTURES THE SOUTHPORT CONN COMPANY'S SHARES ROSE 125 YESTERDAY ON THE EARNINGS NEWS CLOSING AT 4225 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NET INCOME FOR THE QUARTER ROSE TO 59 MILLION OR 88 CENTS A SHARE FROM 43 MILLION OR 63 CENTS A SHARE A YEAR EARLIER FOR THE YEAR NET WAS 222 MILLION OR 329 A SHARE UP FROM 146 MILLION OR 217 A SHARE FOR 1991 SALES FOR THE QUARTER AND YEAR ROSE 27 AND 14 RESPECTIVELY TO 409 MILLION AND 1561 MILLION WILLIAM B RUGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID 1993 EARNINGS SHOULD BE GOOD BUT MAY NOT MATCH 1992 RESULTS BECAUSE OF THE COMPETITIVE GUN MARKET HE ALSO SAID HE DIDN'T EXPECT GUNCONTROL BILLS BEFORE CONGRESS TO HAVE ANY MEASURABLE EFFECT ON OUR SALES STURM RUGER & CO'S CHAIRMAN WILLIAM B RUGER EXPECTS THE EARNINGS INCREASE IN 1993 TO BE GOOD BUT IT MAY NOT MATCH THE RATE OF GAIN IN 1992 WHICH INCREASED 52 FROM 1991 IN AN ARTICLE FRIDAY IT WAS INCORRECTLY REPORTED THAT MR RUGER SAID 1993 EARNINGS MAY NOT MATCH 1992 RESULTS 9303050089 930305 AT&T TO MAKE SURE NO MAN IS AN ISLAND EVEN ON TINY NAURU US FIRM TO UPGRADE PHONES WHICH REMAIN A BIT SCARCE IN 8SQUAREMILE NATION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT MAY BE TIME FOR A REACHOUTANDTOUCH NAURU PROGRAM AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WON A 5 MILLION CONTRACT TO UPGRADE THE TELEPHONE NETWORKS OF THE WORLD'S TINIEST COUNTRY THE TELECOMMUNICATIONS GIANT SAID IT WILL PROVIDE THE EIGHTSQUAREMILE ISLAND NATION WITH A DIGITAL COMMUNICATIONS NETWORK SECOND TO NONE IN THE PACIFIC NAURU ABOUT 2500 MILES SOUTHWEST OF HAWAII COULD USE UPGRADED PHONE SERVICES ABOUT 500 OF ITS 9000 RESIDENTS CAN'T GET AN IMMEDIATE PHONE HOOKUP BECAUSE THE OLD SYSTEM IS OUTDATED RESIDENTS MUST NOW MAKE OUTGOING CALLS THROUGH AN OPERATOR OFTEN WITH ANNOYING DELAYS AND POOR CONNECTIONS BUT AT&T SAYS ITS TOPOFTHELINE DIGITAL SYSTEM WILL RECTIFY THESE PROBLEMS THIS IS A TREND WE ARE SEEING AROUND THE WORLD SAYS BOB FULLERTON MANAGING DIRECTOR OF AT&T'S INTERNATIONAL OPERATIONS DIVISION NOTING THAT EVEN SMALL COUNTRIES LIKE NAURU NEED CONNECTIVITY TO FOREIGN BUSINESS INTERESTS IN NAURU'S CASE MAINTAINING LINKS WITH THE REST OF THE WORLD IS PARTICULARLY IMPORTANT THE COUNTRY EXPORTS ABOUT 75 MILLION A YEAR IN PHOSPHATES NAURU'S MAJOR SOURCE OF REVENUE GROSS NATIONAL PRODUCT IN 1990 WAS US188 MILLION AS PART OF ITS CONTRACT AT&T WILL PROVIDE A SWITCHING SYSTEM MICROWAVE TOWERS A CELLULAR COMMUNICATIONS NETWORK AND ONE YEAR OF ONSITE TECHNICAL SUPPORT EXPECTED TO DOUBLE NAURU'S CALLING VOLUME ACCORDING TO AT&T THE DECISION BY NAURU'S GOVERNMENT TO SPEND 5 MILLION NOT A PALTRY SUM BY ITS STANDARDS ON THE ADVANCED PHONE NETWORK IS PART OF THE COUNTRY'S ATTEMPT TO BOLSTER ITS INFRASTRUCTURE AND ASSIST IN DEVELOPING NEW INDUSTRY ALTHOUGH NAURU IMPORTS VIRTUALLY ALL PRODUCTS INCLUDING WATER IT BOASTED A 1990 PERCAPITA INCOME OF 20667 ONE OF THE HIGHEST IN THE WORLD THE ISLAND WAS DISCOVERED IN 1798 BY THE BRITISH AND HAS BEEN UNDER GERMAN AUSTRALIAN AND JAPANESE RULE OR CONTROL AT VARIOUS TIMES IT BECAME INDEPENDENT IN 1968 THE UPGRADED SYSTEMS ARE CLEARLY NEEDED THIS WEEK THE AT&T SPOKESWOMAN WANTED TO CONFIRM SOME INFORMATION WITH NAURU OFFICIALS BUT COULDN'T GET THROUGH ON THE TELEPHONE 9303050087 930305 BUSINESS BRIEF ELJER INDUSTRIES INC FEDERAL COURT REDUCES JUDGMENT AGAINST COMPANY ELJER INDUSTRIES INC DALLAS SAID A FEDERAL COURT IN CHICAGO REDUCED AN ARBITRATOR'S JUDGMENT AGAINST THE COMPANY TO 122 MILLION FROM 17 MILLION ELJER SAID IT STILL COULD FACE A POSSIBLE DEFAULT ON ITS RECENTLY AMENDED CREDIT AGREEMENT THE DISPUTE STEMS FROM ACCUSATIONS OF FRAUD AND MISREPRESENTATION BY KOWIN DEVELOPMENT CORP WHICH WAS A PARTNER WITH HOUSEHOLD MANUFACTURING INC THE PREDECESSOR TO THE COMPANY'S ELJER MANUFACTURING INC UNIT IN A JOINT VENTURE TO MANUFACTURE AND SELL FILES IN CHINA ELJER SAID IT BELIEVES THE COURT ERRED IN NOT VACATING OR REDUCING ALL ELEMENTS OF THE AWARD AND INTENDS TO APPEAL IN A FEDERAL COURT IN ORDER TO FILE AN APPEAL THE PLUMBING PRODUCTS MAKER MUST POST SECURITY TO STAY ENFORCEMENT OF THE JUDGMENT UNDER ITS CREDIT AGREEMENT ELJER'S LENDERS MUST CONSENT TO THE POSTING OF SECURITY OR THE PAYMENT OF THE JUDGMENT IF THEY DON'T ELJER WILL BE IN DEFAULT OF THE AGREEMENT AFTER A 30DAY GRACE PERIOD ELJER SAID IT HAS REQUESTED THE BANKS' CONSENT TO POST THE SECURITY WHICH IT EXPECTS WON'T EXCEED 129 MILLION 9303050086 930305 CHRYSLER TO CURB MINIVAN PRICE RISES IF JAPANESE VEHICLES GET A 25 TARIFF BY NEAL TEMPLIN AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL CHRYSLER CORP IN AN EFFORT TO GAIN PUBLIC AND POLITICAL SUPPORT FOR TRADE SANCTIONS HAS PLEDGED TO RESTRAIN PRICE INCREASES ON ITS OWN MINIVANS IF THE US GOVERNMENT SLAPS A 25 TARIFF ON JAPANESE MINIVANS CHRYSLER YESTERDAY RELEASED A LETTER FROM ITS CHAIRMAN ROBERT J EATON TO TREASURY SECRETARY LLOYD BENTSEN PROMISING THAT THE PRICES ON CHRYSLER'S MINIVANS WOULD RISE NO FASTER THAN THE RATE OF INFLATION THE EATON LETTER IS JUST THE LATEST SALVO IN DETROIT'S STEPPEDUP CAMPAIGN FOR TRADE SANCTIONS FOLLOWING BILL CLINTON'S ELECTION AS PRESIDENT ALTHOUGH DETROIT HAS DECIDED FOR NOW NOT TO PURSUE AN ANTIDUMPING CASE WHICH COULD LEAD TO BROADER TRADE SANCTIONS AGAINST THE JAPANESE CAR MAKERS THE BIG THREE ARE LOBBYING THE CLINTON ADMINISTRATION TO IMPOSE THE SAME 25 TARIFF ON IMPORTED MINIVANS AND FOURDOOR SPORT UTILITY VEHICLES THAT THE GOVERNMENT NOW LEVIES ON IMPORTED TRUCKS THE TARIFF ON MINIVANS AND SUCH UTILITY VEHICLES IS NOW 2 1/2 FORD MOTOR CO'S CHAIRMAN HAROLD A POLING WHO HAS BEEN PARTICULARLY STRIDENT ON TRADE ISSUES ALSO SAID RECENTLY THAT HE WOULDN'T RAISE MINIVAN PRICES AS A RESULT OF AN INCREASED TARIFF ON IMPORTED MINIVANS A FORD SPOKESMAN SAID YESTERDAY THOUGH THAT THE COMPANY MIGHT HAVE TO RAISE PRICES FOR OTHER REASONS SUCH AS REGULATORY REQUIREMENTS GM YESTERDAY DECLINED TO MAKE A SIMILAR PLEDGE WE DON'T COMMENT ON OUR UPCOMING PRICING STRATEGY A GM SPOKESWOMAN SAID CHRYSLER RELEASED MR EATON'S LETTER WHICH WAS WRITTEN A MONTH AGO TO COUNTER THE PUBLICRELATIONS BATTERING THAT DETROIT HAS TAKEN OVER ITS PUSH FOR PROTECTIONISM IN ADDITION THE BIG THREE US COMPANIES FACE A HIGHLY CHARGED LOBBYING FIGHT LAUNCHED BY FOREIGN AUTO MAKERS SOME AMERICAN CAR DEALERS AND BY CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE ADVOCACY GROUP THAT LOBBIES ON FREETRADE ISSUES AMONG THE FOREIGN CAR COMPANIES DETROIT'S PUSH FOR HIGHER MINIVAN TARIFFS IS DRAWING A WIDE ARRAY OF FOREIGN OPPOSITION INCLUDING PERHAPS SURPRISINGLY FROM THE BRITISH AUTO INDUSTRY THE BRITISH AMBASSADOR TO THE US HAS SENT LETTERS TO MR BENTSEN AS WELL AS TO COMMERCE SECRETARY RON BROWN AND US TRADE REPRESENTATIVE MICKEY KANTOR OPPOSING THE TARIFF INCREASE BRITISH EMBASSY OFFICIALS HAVE LOBBIED ADMINISTRATION OFFICIALS AT THE NATIONAL SECURITY COUNCIL AND THE STATE DEPARTMENT BRITAIN'S ROVER GROUP LTD SOLD JUST OVER 4200 RANGE ROVERS A LUXURY SPORTUTILITY VEHICLE IN THE US LAST YEAR BUT ROVER IS PREPARING A NEW LOWERPRICED SPORTUTILITY VEHICLE TO BE CALLED THE DISCOVERY FOR LAUNCH IN THE US ROVER'S SPORTUTILITY VEHICLES WOULD BE AFFECTED BY A 25 MINIVAN TARIFF ROVER IS VERY IMPORTANT TO US A BRITISH GOVERNMENT OFFICIAL SAID IN ADDITION ANDREAS VAN AGT THE EUROPEAN COMMUNITY'S AMBASSADOR TO THE US RECENTLY BROUGHT UP THE CONTROVERSY AT HIS INTRODUCTORY MEETING WITH MR BENTSEN AND JAPANESE GOVERNMENT OFFICIALS ARE PUMPING THE CLINTON ADMINISTRATION WITH THEIR OPPOSITION SIR LEON BRITTAN THE EC COMMISSIONER FOR FOREIGN TRADE RAISED THE ISSUE WITH MR BENTSEN AT THEIR FIRST MEETING GERMAN EMBASSY OFFICIALS TOO HAVE BEEN LOBBYING AGAINST THE TAX ON BEHALF OF VOLKSWAGEN AG DETROIT HAS LONG COMPLAINED THAT IMPORTED MINIVANS ARE CLASSIFIED AS TRUCKS FOR CERTAIN REGULATIONS AND PASSENGER CARS FOR OTHERS WE EXPECT TO BEAT THE COMPETITION IN THE MARKETPLACE BUT WE ALSO EXPECT THE RULES OF COMPETITION NOT TO BE MANIPULATED TO OUR DISADVANTAGE MR EATON SAID IN HIS LETTER A TOYOTA MOTOR CORP SPOKESMAN YESTERDAY EXPRESSED SKEPTICISM THAT CHRYSLER WILL REALLY RESTRAIN PRICES IF IMPORTED VANS ARE HIT WITH THE 25 TARIFF EVEN THOUGH HISTORY IS CLEAR THAT THE BIG THREE TOOK ADVANTAGE OF 10 YEARS OF RESTRAINTS ON PASSENGER CARS TO RAISE PRICES CHRYSLER IS SAYING FORGET THE PAST TRUST US NOW' SAID BOB WADE A TOP TOYOTA PUBLIC AFFAIRS OFFICIAL IN WASHINGTON MY ADVICE TO THE AMERICAN PUBLIC IS HANG ON TO YOUR WALLETS INDEED MR EATON'S PRICING PLEDGE ISN'T QUITE AS RESTRICTIVE AS IT MIGHT SEEM THAT'S BECAUSE CHRYSLER LIKE VIRTUALLY ALL AUTO MAKERS ALWAYS FIGURES PRICE INCREASES ON A COMPARABLY EQUIPPED BASIS THUS IF STANDARD EQUIPMENT IS ADDED FROM ONE YEAR TO ANOTHER ANY PRICE BOOST ASSOCIATED WITH THE EQUIPMENT DOESN'T COUNT IN CHRYSLER'S CALCULATIONS AS A PRICE INCREASE IRONICALLY CHRYSLER SEEKS BROADER TRADE SANCTIONS AT A TIME WHEN THE BIG THREE HAVE BEEN GAINING SHARE IN THE MINIVAN MARKET LARGELY BECAUSE OF STEEP JAPANESE PRICE INCREASES CHRYSLER ITSELF IMPROVED ITS SHARE OF THE US MINIVAN MARKET TO 518 SO FAR THIS YEAR FROM 435 IN 1990 TWO YEARS AGO THE BIG THREE FILED A SUIT ALLEGING THAT THE JAPANESE CAR MAKERS HAD BEEN DUMPING MINIVANS IN THE US MARKET BUT EVEN THOUGH THE COMMERCE DEPARTMENT DECIDED LAST YEAR THAT DUMPING HAD OCCURRED THE INTERNATIONAL TRADE COMMISSION LATER RULED THAT THE BIG THREE HADN'T SUFFERED ANY DAMAGES AND THAT SANCTIONS WEREN'T JUSTIFIED MR KANTOR THE US TRADE REPRESENTATIVE IS SCHEDULED TO MEET TODAY AT FORD'S WORLD HEADQUARTERS IN DEARBORN MICH WITH FORD'S MR POLING CHRYSLER'S MR EATON AND WILLIAM HOGLUND A GM EXECUTIVE VICE PRESIDENT IN A STATEMENT YESTERDAY MR KANTOR SAID THAT DETROIT IS AT THE NERVE CENTER OF AMERICA'S NEW TRADE AND ECONOMIC DIALOGUE 9303050085 930305 US MEAT INSPECTORS TO TOUGHEN STANDARDS ON CONTAMINATION WASHINGTON THE AGRICULTURE DEPARTMENT SAID ITS INSPECTORS WILL REQUIRE CATTLE CARCASSES AND BONELESS BEEF TO BE COMPLETELY FREE OF FECAL CONTAMINATION THE MOVE TOUGHENING MEAT INSPECTION STANDARDS COMES IN RESPONSE TO AN OUTBREAK OF FOOD POISONING FROM BACTERIALLY CONTAMINATED GROUND BEEF IN A MEMO ISSUED THIS WEEK THE FOOD SAFETY AND INSPECTION SERVICE TOLD INSPECTORS AND PLANT OPERATORS THAT MEAT WITH ANY AMOUNT OF CONTAMINATION BY FECES OR UNDIGESTED FOOD SHOULDN'T RECEIVE AGRICULTURE DEPARTMENT APPROVAL IN THE PAST SMALL SPECKS OF CONTAMINATION WERE OVERLOOKED SAID JIM GREENE A SPOKESMAN FOR THE INSPECTION SERVICE THE MEMO ALSO SAID THAT BEFORE WASHING THE CARCASS INSPECTORS AND PLANT OPERATORS MUST CUT FROM THE CARCASS ALL CONTAMINATION FROM FECES MILK OR UNDIGESTED FOOD SUCH CONTAMINATION CAN CARRY THE BACTERIA THAT CAUSED THE RECENT FOODPOISONING OUTBREAK ON THE WEST COAST PREVIOUSLY INSPECTORS WOULD TRY TO HOSE OFF CONTAMINATION CRITICS SAID THAT PRACTICE BACKFIRED AS THE WATER PRESSURE OFTEN EMBEDDED THE CONTAMINATED MATERIAL INTO THE CARCASS TOM DEVINE LEGAL DIRECTOR FOR THE GOVERNMENT ACCOUNTABILITY PROJECT A FREQUENT CRITIC OF GOVERNMENT MEAT INSPECTION STANDARDS CALLED THE MOVES A GENUINE SANITATION BREAKTHROUGH 9303050084 930305 BUSINESS BRIEF H&R BLOCK INC FIRM TO OFFER MASTERCARD LINKED TO CREDITS FOR SERVICE H&R BLOCK INC KANSAS CITY MO DISCLOSED PLANS TO JOIN THE GROWING RANKS OF NONBANK COMPANIES OFFERING CREDIT CARDS THROUGH A MASTERCARD SPECIALLY DESIGNED FOR CUSTOMERS OF THE TAXPREPARATION CONCERN BLOCK SAID IT PLANS TO TEST ITS VALUECARD IN 14 STATES THIS MONTH THE CARD WILL INCLUDE A PROGRAM KNOWN AS BLOCKBUCKS UNDER WHICH CARDHOLDERS WOULD EARN A 5 CREDIT TOWARD TAXPREPARATION SERVICES FOR EVERY 500 THEY CHARGE ON THE CARD DURING THE YEAR A NUMBER OF COMMERCIAL AND RETAIL CONCERNS INCLUDING GENERAL MOTORS CORP AND FORD MOTOR CO HAVE RECENTLY OPTED TO ISSUE CARDS AS A MARKETING TOOL TO BOOST SALES OF THEIR PRODUCTS AND SERVICES BLOCK SAID ITS CARD WILL CARRY A 9 ANNUAL FEE AND CHARGE AN ANNUAL PERCENTAGE RATE 99 OVER THE PRIME RATE CURRENTLY THAT WOULD REPRESENT A RATE OF 159 BLOCK SAID THE BLOCK MASTERCARDS ARE BEING ISSUED BY COLUMBUS BANK & TRUST OF COLUMBUS GA ACCORDING TO A BLOCK OFFICIAL 9303050083 930305 BUSINESS BRIEF BANKAMERICA CORP UNIT LENT 21 BILLION IN '92 TO LOWINCOME CONSUMERS BANK OF AMERICA SAID IT MADE 21 BILLION OF LOANS TO LOWINCOME CONSUMERS AND NEIGHBORHOODS LAST YEAR AND THAT IT PLANS TO INCREASE SUCH COMMUNITY REINVESTMENT ACT LENDING SHARPLY IN 1993 THE MAIN UNIT OF BANKAMERICA CORP MADE 758 MILLION OF CRA LOANS IN 1991 BEFORE ITS MERGER WITH SECURITY PACIFIC BANCORP AND EXCLUDING HOME LOANS TO LOWINCOME INDIVIDUALS LIVING OUTSIDE LOWINCOME NEIGHBORHOODS ITS 1992 TOTAL INCLUDES 946 MILLION OF SUCH HOME LOANS TOTAL CRA HOUSING LOANS AMOUNTED TO 19 BILLION WHILE SMALL BUSINESS AND FARM LOANS TOTALED 2396 MILLION AND CONSUMER LOANS 37 MILLION THE BANK SAID IT IS RAISING ITS GOAL FOR 1993 CRA LENDING BY 21 IN CALIFORNIA TO 106 BILLION FROM A PREVIOUSLY STATED TARGET OF 787 MILLION AND BY 25 IN THE 10 WESTERN STATES IT SERVES TO 15 BILLION FROM 12 BILLION THESE TARGETS EXCLUDE HOME LOANS TO LOWINCOME PERSONS LIVING OUTSIDE LOWINCOME NEIGHBORHOODS 9303050082 930305 BUSINESS BRIEF SHARPER IMAGE CORP RETAILER EXPECTS SMALL PROFIT FOR YEAR ON 52 SALES RISE SHARPER IMAGE CORP SAID IT EXPECTS TO EARN TWO TO FOUR CENTS A SHARE FOR ITS FISCAL YEAR ENDED JAN 31 A TURNAROUND FROM A LOSS OF 34 MILLION OR 41 CENTS A SHARE IN FISCAL 1992 THE SAN FRANCISCO RETAILER SAID SALES FOR THE YEAR ROSE 52 TO 1484 MILLION ALLOWING IT TO MAKE A SMALL PROFIT RICHARD THALHEIMER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE LOOK FORWARD TO CONTINUED IMPROVEMENT IN PROFITS IN THE COMING YEAR ALTHOUGH HE SAID A 97 SALES DECLINE IN FEBRUARY TO 82 MILLION WAS A MILD DISAPPOINTMENT FOR THE FIRST NINE MONTHS SHARPER IMAGE HAD A NET LOSS OF 4 MILLION OR 48 CENTS A SHARE COMPARED WITH A NET LOSS OF 75 MILLION OR 91 CENTS A SHARE A YEAR EARLIER SALES WERE 918 MILLION UP FROM 852 MILLION THE COMPANY'S STOCK WAS UNCHANGED AT 2875 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9303050081 930305 THE SNAKE OF TERROR IN OUR GARDEN BY STEVEN EMERSON THE REPORTS THAT US AGENTS YESTERDAY ARRESTED A MUSLIM FUNDAMENTALIST AS A SUSPECT IN NEW YORK'S WORLD TRADE CENTER BOMBINGS SEEM IN SOME SENSE TO CONFIRM AMERICANS' WORST FEARS MANY CITIZENS HAD HALF HOPED THAT THE MAN WHOSE WORK KILLED FIVE INJURED 1000 AND DID 1 BILLION IN DAMAGE TO NEW YORK'S ECONOMY WAS A MERE DERANGED LOCAL BUT AT PRESSTIME IT APPEARED THAT THE SUSPECT HAD LINKS TO A FUNDAMENTALIST GROUP IN THE MIDDLE EAST IF THESE LINKS ARE CONFIRMED THE MAN'S ARREST REFLECTS A BIGGER PROBLEM THE US HAS BECOME A MAJOR HAVEN FOR RADICAL ISLAMIC MOVEMENTS THESE ARE MOVEMENTS THAT WANT TO KILL WHAT THEY DEEM TO BE ENEMIES OF ISLAM MODERATE ARAB LEADERS JEWS CHRISTIANS AND OTHER NONBELIEVERS SUCH MOVEMENTS PLAGUE THE MODERATE ISLAMIC COUNTRIES THEY ARE RESPONSIBLE FOR THE ASSASSINATION OF AT LEAST TWO HEADS OF STATE BOMBINGS SHOOTINGS AND KILLINGS OF SCORES OF CIVILIANS IN HALF A DOZEN MUSLIM COUNTRIES FROM ALGERIA TO JORDAN IN RESPONSE TO CRACKDOWNS IN MODERATE ARAB COUNTRIES THESE ORGANIZATIONS HAVE SHIFTED TO THE US DEVELOPING EXTENSIVE INFRASTRUCTURES HERE TO COORDINATE TERRORIST ACTIVITIES IN THEIR OWN COUNTRIES ACCORDING TO INTELLIGENCE AND LAW ENFORCEMENT SOURCES IN THE PAST FIVE YEARS THESE NETWORKS HAVE COME TO RECRUIT PROVIDE COMMANDANDCONTROL RAISE FUNDS AND DIRECT TERRORIST ATTACKS IN THEIR OWN COUNTRIES FROM BASES AS SEEMINGLY MUNDANE AS SUPERMARKETS IN CHICAGO OR BAKERIES IN BROOKLYN THE OVERWHELMING MAJORITY OF THE MORE THAN SEVEN MILLION MUSLIMS IN THE US ARE OF COURSE LAWABIDING PEOPLE WHO DO NOT CONDONE TERROR IT IS IMPORTANT TO RECOGNIZE THAT THE FUNDAMENTALIST TERRORISTS ARE A TINY MINORITY OF PERHAPS A FEW HUNDRED BUT AS NEW YORK SAW LAST WEEK ONE SINGLE TERRORIST AND A CAR BOMB CAN DISRUPT TENS OF THOUSANDS OF LIVES AT PRESSTIME IT APPEARED THAT THE MAN ARRESTED YESTERDAY WAS AFFILIATED WITH JIHAD ORGANIZATION AN IDEOLOGICAL OFFSHOOT OF THE MOSLEM BROTHERHOOD A RADICAL FUNDAMENTALIST ISLAMIC ORGANIZATION IN EGYPT JIHAD IS HEADED BY A SHEIK OMAR ABDELRAHMAN WHOM THIS NEWSPAPER PROFILED EARLIER THIS YEAR JIHAD IS THE MOST RADICAL ORGANIZATION IN EGYPT IT IS MOST KNOWN TODAY FOR ITS MURDEROUS ATTACK ON TOURISTS IN EGYPT IN THE PAST YEAR MEMBERS HAVE ALSO KILLED SCORES OF EGYPTIANS TARGETING COPTIC CHRISTIANS JIHAD WAS ALSO RESPONSIBLE IT IS BELIEVED FOR THE MURDER OF THE SPEAKER OF THE EGYPTIAN PARLIAMENT AND PRESIDENT ANWAR SADAT IN THE US LAW ENFORCEMENT OFFICIALS BELIEVE THAT JIHAD WAS INVOLVED IN THE MANHATTAN ASSASSINATION A FEW YEARS AGO OF ISRAEL'S RADICAL RIGHTWING RABBI MEIR KAHANE SHEIK OMAR PREACHES AT TWO NEW YORKAREA MOSQUES ONE NOT FAR FROM CONEY ISLAND IN BROOKLYN AND ONE IN JERSEY CITY NJ THIS GROUP HAS ALSO BEEN ASSOCIATED WITH THE MURDERS OF FUNDAMENTALIST MUSLIMS IN THE US PEOPLE MURDERED IT IS SUPPOSED BECAUSE THEY WERE COMPETING WITH JIHAD FOR FUNDS THE GROUP IS KNOWN TO HAVE SENT MONEY TO SWITZERLAND AND EGYPT AN ARABICLANGUAGE NEWSPAPER SABAH ALKHEIR RECENTLY QUOTED SHEIK OMAR AS DESCRIBING HIS GROUP'S MISSION THIS WAY THE MUSLIMS MUST KILL THE ENEMIES OF ALLAH IN EVERY WAY AND EVERYWHERE IN ORDER TO LIBERATE THEMSELVES FROM THE GRANDCHILDREN OF THE PIGS AND APES WHO ARE EDUCATED AT THE TABLES OF THE ZIONISTS THE COMMUNISTS AND THE IMPERIALISTS IT IS IMPORTANT TO STRESS HERE THAT IF THE WORLD TRADE CENTER BOMBING IS CONCLUSIVELY LINKED TO THOSE WHO PLANNED AND CARRIED OUT THE ASSASSINATION OF MEIR KAHANE THEN IT WILL MEAN THAT JIHAD ALONE HAS BEEN RESPONSIBLE FOR THE TWO MAJOR MIDEAST TERROR ACTS AGAINST NONARABS IN THE US IN THE PAST SEVERAL YEARS ANOTHER GROUP THAT HAS WIDENED ITS INFLUENCE IN THE US IS HAMAS THE PALESTINIAN FUNDAMENTALIST GROUP WHOSE NAME BECAME A HOUSEHOLD WORD WHEN ISRAEL DEPORTED 400 OF ITS MEMBERS FOLLOWING THAT NATION'S OWN BOUT WITH DOMESTIC TERROR LAST FALL IN ISRAEL AND IN THE TERRITORIES HAMAS HAS BECOME KNOWN FOR ITS GRUESOME KILLINGS OF PALESTINIANS AND JEWS DISEMBOWELMENT DISMEMBERMENT AND DECAPITATION ARE ITS TRADEMARKS IN THE US ITS ORGANIZATIONAL CENTERS ARE PRIMARILY IN CHICAGO AND VIRGINIA THE UNITED ASSOCIATION FOR STUDIES AND RESEARCH A SPRINGFIELD VA GROUP IS AFFILIATED WITH HAMAS TWO PALESTINIANAMERICANS WERE RECENTLY ARRESTED IN ISRAEL FOLLOWING THE USTOMIDEAST TRANSFER OF MONEY USED FOR THE PURCHASE OF WEAPONS USED IN THE KILLING OF TWO ISRAELIS THE GROUP'S POLITICAL LEADERS HERE SERVE AS AN INTERNATIONAL SWITCHBOARD FOR OPERATIONS IN THE MIDDLE EAST HAMAS ALSO SENDS INSTRUCTIONS TO ITS MEMBERS IN THE OCCUPIED TERRITORIES THE FBI HAS SOME OF THIS INFORMATION ADDITIONAL IMPORTANT ARAB FUNDAMENTALIST GROUPS THAT ARE GROWING IN THE US INCLUDE HEZBOLLAH THE IRANIANSPONSORED LEBANESE PARTY OF GOD WHICH WAS RESPONSIBLE FOR THE ABDUCTION AND KILLING OF AMERICANS AND THE OTHER INFAMOUS CARBOMB ATTACK THE 1983 BOMBING THAT KILLED MORE THAN 200 US MARINES IN BEIRUT HEZBOLLAH HAS A RELATIVELY NEW BASE IN DEARBORN MICH AND HEZBOLLAHSPONSORED CONFERENCES TAKE PLACE IN THE US ALGERIAN FUNDAMENTALIST GROUPS THE GROUPS THAT HAVE SO LATELY CAUSED SO MUCH BLOOD TO BE SPILLED IN THEIR HOMELAND ARE ALSO KNOWN TO BE USING THE US AS A PITSTOP OR HAVEN WHAT'S IMPORTANT TO REALIZE HERE IS THAT THE US IS TAKING ON A ROLE ONCE HELD SOLELY BY EUROPE A CENTER FOR FUNDAMENTALISTS AND RADICAL INTERNATIONAL MOVEMENTS FRANCE WAS LONG KNOWN AS A HAVEN POL POT THOUGHT OUT THE KHMER ROUGE WHILE IN PARIS AYATOLLAH KHOMEINI BIDED HIS TIME FOR MANY YEARS IN SOUTHERN FRANCE WHERE HE ORGANIZED THE COUP AGAINST THE SHAH BUT EUROPEAN GOVERNMENTS IN RECENT YEARS HAVE BEGUN TO CLAMP DOWN SO THE GROUPS ARE CROSSING THE ATLANTIC FREEDOM OF SPEECH AND RELIGION ARE BASIC TENETS FOR THE US BUT THERE ARE SOME STEPS WE CAN TAKE HERE THE FIRST MANY ARGUE IS TO STRENGTHEN THE FBI'S HAND THE SECOND STEP IS TO GET SERIOUS ABOUT ENFORCING CIVIL LAWS ALLOWING DENIAL OF ENTRY TO THE US OR EXPULSION FOR NONCITIZENS WHO HAVE GIVEN MATERIAL SUPPORT OR FUNDS TO ANY TERRORIST ORGANIZATION TO THE EXTENT THAT WE TOLERATE SUCH GROUPS WE ARE LAYING THE GROUNDWORK FOR LOCAL TRAGEDIES SUCH AS THE WORLD TRADE CENTER BOMBING MR EMERSON WHO WRITES FREQUENTLY ON TERRORISM IS COAUTHOR OF THE FALL OF PAN AM 103 PUTNAM 9303050080 930305 SEC SAYS AT LEAST ONE BROKERAGE FIRM GAVE HELP TO WYMER IN FRAUD SCHEME BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MONEY MANAGER STEVEN WYMER WHO HAS ADMITTED DEFRAUDING SMALL INSTITUTIONAL INVESTORS OF ABOUT 174 MILLION HAD INSIDE HELP FROM AT LEAST ONE BROKERAGE FIRM ACCORDING TO MR WYMER AND SECURITIES AND EXCHANGE COMMISSION OFFICIALS MR WYMER IS TO BE SENTENCED MARCH 31 ON NINE FEDERAL CHARGES INCLUDING RACKETEERING MAIL FRAUD AND SECURITIES VIOLATION HE PLEADED GUILTY TO THE CHARGES LAST SEPTEMBER AND AGREED TO COOPERATE IN FURTHER INVESTIGATIONS OF UNAUTHORIZED TRADING THAT COST THE CITIES PENSION FUNDS AND OTHER INVESTORS HE REPRESENTED IN TESTIMONY BEFORE A CONGRESSIONAL SUBCOMMITTEE MR WYMER SAID EMPLOYEES AT FIVE BROKERAGE FIRMS COLLUDED WITH HIM IN HIDING ACCOUNTS AND MONEYLOSING TRADES FROM THE CLIENTS OF HIS FIRM INSTITUTIONAL TREASURY MANAGEMENT INC IRVINE CALIF MR WYMER WAS THE PRESIDENT AND SOLE SHAREHOLDER OF THE FIRM WHICH WAS PREVIOUSLY KNOWN AS DENMAN & CO SEC ENFORCEMENT OFFICIALS SAID IN INTERVIEWS THAT THEIR INVESTIGATION INTO THE BROKERAGE FIRMS' DEALINGS WITH MR WYMER IS CONTINUING BUT SAID THEY BELIEVE THAT EMPLOYEES AT ONLY ONE OF THE FIRMS WAS KNOWINGLY AIDING MR WYMER IN HIS TRADING AND CONCEALMENT NONE OF THE FIRMS WERE NAMED IN MR WYMER'S TESTIMONY YESTERDAY BEFORE A PANEL OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND SEC OFFICIALS DECLINED TO IDENTIFY THE TARGETS OF THEIR INVESTIGATION MR WYMER SAID HE EMBARKED ON THE UNAUTHORIZED TRADES AT INSTITUTIONAL TREASURY MANAGEMENT TO TRY TO RECOUP LOSSES INCURRED IN HIS CLIENTS' ACCOUNTS AT DENMAN & CO MR WYMER TOLD THE SUBCOMMITTEE THAT HE WAS ABLE TO ACCOMPLISH THE TRADES WITHOUT HIS CLIENTS' KNOWLEDGE BY DEVELOPING A VIRTUAL LIBRARY OF FALSE DOCUMENTS INCLUDING FORGED AUTHORIZATIONS THAT PURPORTED TO GIVE MR WYMER THE RIGHT TO RECEIVE ALL RECORDS OF TRADES FROM THE BROKERAGE FIRMS EXECUTING THEM BY STEERING THE TRADING CONFIRMATIONS TO HIMSELF MR WYMER SAID HE COULD SEND FALSE ACCOUNT STATEMENTS TO HIS CLIENTS LULLING THEM INTO THINKING THEIR INVESTMENTS WERE PERFORMING AS WELL AS HE HAD PROMISED THE SEC ACTING ON A TIP ABOUT QUESTIONABLE FINANCIAL STATEMENTS FOR MR WYMER'S FIRM EXAMINED THE FIRM'S BOOKS IN JULY 1990 BUT FOUND ALL DOCUMENTATION IN PLACE MR WYMER SAID YESTERDAY THAT ALMOST EVERY DOCUMENT WAS FALSIFIED THANKS TO AN EMPLOYEE'S TALENT FOR FORGERY I BELIEVE IT WAS ATTENTION TO DETAIL THAT PREVENTED EARLIER DETECTION MR WYMER SAID HIS FRAUD WAS UNCOVERED IN DECEMBER 1991 AFTER THE SEC RAISED QUESTIONS ABOUT A VAST NUMBER OF TREASURY OPTIONS BEING TRADED IN THE ACCOUNT OF A SMALL IOWA TOWN MR WYMER'S FORMER EMPLOYEE PORTFOLIO MANAGER ANGELA CHILLES SETTLED SEC FRAUD CHARGES IN LOS ANGELES EARLIER THIS WEEK AND AGREED TO PAY A CIVIL PENALTY OF 15000 SHE DIDN'T ADMIT OR DENY WRONGDOING THE SEC IN A STATEMENT SAID MS CHILLES CREATED MORE THAN 1000 FICTITIOUS TRADE CONFIRMATIONS THAT WERE LABELED CT THE SEC IN ITS INITIAL INVESTIGATION WAS TOLD THE INITIALS REPRESENTED CONFIRMED TRADE BUT THE AGENCY LATER LEARNED THEY STOOD FOR CONTRIVED TRADE ACCORDING TO LORI RICHARDS THE SEC'S ENFORCEMENT CHIEF IN LOS ANGELES UNLIKE HER FORMER BOSS MS CHILLES WON'T FACE CRIMINAL CHARGES ACCORDING TO HER LAWYER MS CHILLES COOPERATED FULLY WITH THE GOVERNMENT'S INVESTIGATION AND AS A RESULT OF HER COOPERATION WILL NOT BE PROSECUTED SAID DEFENSE LAWYER JAN LAWRENCE HANDZLIK OF LOS ANGELES MR WYMER AS PART OF HIS PLEA AGREEMENT WITH FEDERAL PROSECUTORS ALSO IS COOPERATING IN THE VARIOUS INVESTIGATIONS INCLUDING THOSE BY THE HOUSE SUBCOMMITTEE THE SUBCOMMITTEE SOUGHT MR WYMER'S TESTIMONY TO BOLSTER ITS PUSH FOR LEGISLATION TO TIGHTEN SEC OVERSIGHT OF FINANCIAL ADVISERS MR WYMER PRAISED THE PROPOSED LEGISLATION ESPECIALLY THE PROVISION THAT WOULD ADD MORE SEC EXAMINERS BUT HE SAID IT WOULD HAVE DONE LITTLE TO DETER HIS ACTIVITIES BECAUSE HE DIDN'T FEAR DETECTION I FELT IT WOULD HAVE TO HAVE BEEN A RANDOM CIRCUMSTANCE FOR ME TO HAVE BEEN APPREHENDED HE SAID I FELT THAT I COULD SUBVERT THE PROCESS 9303050079 930305 ECONOMY PARTS OF CLINTON BUDGET DON'T REFLECT VOW TO ESCHEW SMOKE AND MIRRORS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUDGET DIRECTOR LEON PANETTA PROMISED A SCRUPULOUSLY HONEST BUDGET DEVOID OF THE OBFUSCATION AND ACCOUNTING GIMMICKS THAT HE SAID HAVE UNDERMINED CONFIDENCE IN THE GOVERNMENT WE CAN FIGHT OVER CHOICES HE SAID AT HIS CONFIRMATION HEARING BUT YOU'VE GOT TO SHOOT STRAIGHT ON THE NUMBERS A CLOSE EXAMINATION OF THE CLINTON ADMINISTRATION'S 145PAGE MINIBUDGET SUGGESTS MR PANETTA FELL SHORT I'M NOT SAYING YOU CAN'T UNDERSTAND THE PROPOSAL SAYS NEW MEXICO SEN PETE DOMENICI THE SENIOR REPUBLICAN ON THE BUDGET COMMITTEE BUT IF YOU ARE TALKING ABOUT STRAIGHTFORWARD ABSOLUTELY CONSISTENT APPROACHES TO BUDGETING AND RELIABLE NUMBERS WELL THERE ARE GIMMICKS IN THIS BUDGET PERHAPS IT WAS THE HASTE WITH WHICH THE WHITE HOUSE HAD TO ASSEMBLE ITS BUDGET OUTLINE OR THE IMPERATIVE OF REACHING PRESIDENT CLINTON'S DEFICIT GOAL OR THE PRESSURE TO FIND THINGS THAT COULD BE CALLED SPENDING CUTS BUT WHATEVER THE REASON IT IS GETTING MIXED REVIEWS FROM BUDGET WATCHERS EVEN FROM SOME WHO ADMIRE THE PRESIDENT'S POLITICAL COURAGE IN PROPOSING HIGHER TAXES AND USING THE CONGRESSIONAL BUDGET OFFICE'S RELATIVELY PESSIMISTIC ECONOMIC ASSUMPTIONS IN SOME CASES THE BUDGET IS NOTHING MORE THAN NUMBERS IN SEARCH OF A POLICY IN OTHERS THE CLINTON BUDGET OFFICE ALTERED BUDGET SCOREKEEPING CONVENTIONS AND IN STILL OTHERS IT APPEARS TO HAVE ERRED BECAUSE IT HAD TO MOVE SO QUICKLY AMONG THE SAVINGS LISTED IN THE CLINTON VOLUME IS THE SUPERCONDUCTING SUPER COLLIDER THE TEXAS ATOM SMASHER THE WHITE HOUSE PROPOSES TO DELAY COMPLETION IN ORDER TO ENSURE THAT ALL OF THE COMPONENTS ARE TECHNOLOGICALLY EFFECTIVE ACCORDING TO THE BUDGET OFFICE MR CLINTON DOES PROPOSE TO SPEND ABOUT 900 MILLION LESS OVER THE NEXT FIVE YEARS THAN REQUIRED TO FINISH THE PROJECT ON TIME WHAT THE BUDGET DOESN'T MENTION THOUGH ARE BUDGET OFFICE ESTIMATES THAT THE RESULTING DELAY OF THREE TO FOUR YEARS WOULD ADD 18 BILLION TO THE FINAL PRICE TAXING MORE OF THE SOCIAL SECURITY BENEFITS RECEIVED BY UPPERINCOME ELDERLY PEOPLE IS SAID TO BRING IN 281 BILLION OVER THE NEXT FIVE YEARS IN FACT ESTIMATES FROM THE TREASURY THE OFFICIAL ARBITER OF TAX MATTERS ARE LOWER THAN THAT IN THEIR HASTE WHITE HOUSE BUDGET DRAFTERS USED ESTIMATES FROM A YEAROLD CONGRESSIONAL BUDGET OFFICE VOLUME EVEN THOUGH THEY USED TREASURY ESTIMATES FOR OTHER TAXES ASKED ABOUT THE ESTIMATES PRINTED IN THE BUDGET A TREASURY SPOKESMAN SAID ASK OMB THE OFFICE OF MANAGEMENT AND BUDGET AN OMB SPOKESMAN SAID IT DOESN'T PLAN TO ALTER THE FIGURES IN THE FORMAL BUDGET BOOK DUE EARLY NEXT MONTH UPTODATE CONGRESSIONAL ESTIMATES FOR THE SOCIAL SECURITY PROPOSAL ARE ACTUALLY SLIGHTLY HIGHER THAN THOSE IN THE CLINTON VOLUME FOR SOME OTHER CLINTON TAX INCREASES HOWEVER THEY ARE LOWER THE CHARTS IN THE BUDGET SHOW THAT EVEN IF MR CLINTON'S POLICIES ARE EMBRACED IN THEIR ENTIRETY THE DEFICIT WOULD START CLIMBING AGAIN AFTER 1997 SO THE BUDGET OFFICE ADDED A LINE SHOWING WHAT WOULD HAPPEN IF HEALTHCARE COSTS WERE CONTROLLED LO AND BEHOLD THE DEFICIT SHRINKS HOW DOES MR CLINTON PLAN ON SHAVING 118 BILLION MORE OFF THE FEDERAL HEALTH CARE TAB OVER THE NEXT FOUR YEARS THE BUDGET OFFICE DOESN'T SAY EXPLAINING THAT THE CHART IS ILLUSTRATIVE IN FACT THE LINE REPRESENTS A DEVICE THAT FORMER BUDGET DIRECTOR RICHARD DARMAN USED TO MUCH RIDICULE FROM DEMOCRATS IT SIMPLY ASSUMES THAT THE GOVERNMENT WILL FIND A WAY TO KEEP HEALTH SPENDING FROM GROWING FASTER THAN THE GENERAL INFLATION RATE THE WHITE HOUSE OVERESTIMATED THE SAVINGS FROM ITS MEDICARE PROPOSALS BY ABOUT 45 BILLION OVER FIVE YEARS THE CBO ESTIMATES THE PROBLEM WAS THAT NUMBERCRUNCHERS AT THE HEALTH CARE FINANCING ADMINISTRATION MISTAKENLY USED ECONOMIC ASSUMPTIONS DIFFERENT FROM THOSE USED IN THE REST OF THE BUDGET THE CBO ALSO SAYS THE WHITE HOUSE OVERESTIMATED BY 67 BILLION THE FIVEYEAR SAVINGS FROM LIMITING FEDERAL EMPLOYEE RAISES BECAUSE IT APPARENTLY FORGOT TO ADJUST CERTAIN PENTAGON CONTRIBUTIONS TO RETIREMENT FUNDS PROPOSED SPENDING FOR NEXT YEAR EXCEEDS BY A FEW BILLION DOLLARS CEILINGS WRITTEN INTO LAW IN 1990 MR PANETTA INSISTS THE ADMINISTRATION WILL LIVE WITHIN THE CAPS ONE OPTION HE SAID THIS WEEK IS THE OLD TRICK OF SHIFTING SPENDING FROM ONE YEAR INTO THE NEXT THAT IS TO SPEND A LITTLE LESS NEXT YEAR WITHOUT REDUCING TOTAL SPENDING OVER FOUR YEARS THAT MANEUVER MIGHT NOT WORK THOUGH BECAUSE SO MUCH MONEY IS INVOLVED THE WHITE HOUSE IS LOOKING FOR OTHER SOLUTIONS DEFENSE SPENDING IS PROJECTED TO TAKE A 16 BILLION DROP IN 1997 THE ALLIMPORTANT TARGET YEAR FOR MR CLINTON'S DEFICIT REDUCTION PROMISE THE FOLLOWING YEAR DEFENSE OUTLAYS WOULD INCREASE 4 BILLION THE BUDGET OFFICE SAYS IT SIMPLY BUILT IN AN INCREASE FOR INFLATION IN 1998 PENDING A REVIEW BY THE PENTAGON MR CLINTON SAYS HIS PLAN WOULD REDUCE THE FEDERAL DEFICIT FROM PROJECTED LEVELS BY 39 BILLION NEXT YEAR AND BY 473 BILLION OVER THE NEXT FIVE YEARS THE CBO SAYS THE CLINTON PLAN WOULD REDUCE THE DEFICIT BY 186 BILLION NEXT YEAR AND BY 362 BILLION OVER FIVE YEARS BUT LARGELY BECAUSE THE CBO EXPECTS EXISTING TAXES TO PRODUCE MORE REVENUE THAN THE ADMINISTRATION DOES BOTH IT AND THE WHITE HOUSE COME TO ALMOST IDENTICAL CONCLUSIONS ABOUT WHAT THE DEFICIT WILL BE IN THE LAST YEAR OF MR CLINTON'S TERM THE WHITE HOUSE PROJECTS THE FISCAL 1997 DEFICIT AT 2065 BILLION THE CBO AT 2049 BILLION 9303050078 930305 ITT WILL OMIT MANY BONUSES FOR TOP EXECUTIVES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP SAID IT OMITTED PERFORMANCE BONUSES FOR MANY TOP EXECUTIVES BECAUSE OF THE COMPANY'S 1992 FINANCIAL RESULTS THE COMPANY USUALLY PAYS BONUSES IN MARCH BASED ON PRIOR YEAR RESULTS AND PAID OUT 45 MILLION LAST YEAR UNDER ITS BONUS FORMULA THIS YEAR THE PAYMENTS WILL TOTAL ABOUT 15 MILLION FOR EXECUTIVES WHOSE BUSINESSES MET PERFORMANCE GOALS OR FOR RECENTLY HIRED EXECUTIVES WHOSE CONTRACTS CALLED FOR BONUS PAYMENTS THE GROUP WHICH DIDN'T RECEIVE BONUSES INCLUDED THE 160 EXECUTIVES AT ITT'S HEADQUARTERS AS WELL AS EXECUTIVES OF ITT HARTFORD AND MUCH OF ITT FINANCIAL BOTH OF THOSE UNITS INCURRED HUGE ONETIME CHARGES TO BOLSTER RESERVES FOR POSSIBLE INSURANCE AND CONSUMER LOAN LOSSES ITT CHAIRMAN RAND V ARASKOG WHOSE GENEROUS COMPENSATION AGREEMENTS HAVE STIRRED CONTROVERSY IN RECENT YEARS WAS AMONG EXECUTIVES WHO DIDN'T GET A BONUS LAST YEAR HIS BONUS FOR 1991 WAS 14 MILLION ITT HASN'T REPORTED MR ARASKOG'S COMPENSATION PACKAGE FOR 1992 A SPOKESMAN FOR THE COMPANY NOTED THAT ITT'S BOARD COMPENSATION COMMITTEE HAS SOME LEEWAY IN MAKING RECOMMENDATIONS ABOUT BONUSES AND CAN PEG THEM ABOVE OR BELOW THE FORMULA MR ARASKOG SAID HEADQUARTERS EXECUTIVES DIDN'T RECEIVE BONUSES BECAUSE THE OVERALL PERFORMANCE OF THE COMPANY DIDN'T WARRANT IT IN 1992 ITT HAD A LOSS OF 885 MILLION OR 793 A SHARE ON 217 BILLION IN SALES AND SERVICE REVENUE IN A MEETING WITH ANALYSTS MR ARASKOG WAS UPBEAT ABOUT THE COMPANY'S 1993 PROSPECTS HE SAID NET INCOME WOULD SUBSTANTIALLY OUTPACE THE 1992 LEVEL AT 334 MILLION OR 232 A SHARE WHEN SPECIAL ITEMS ARE EXCLUDED WE ARE COMFORTABLE WITH THE ANALYSTS' PROJECTIONS FOR THE YEAR MR ARASKOG SAID WALL STREET'S CONSENSUS PLACES ITT'S 1993 EARNINGS AT BETWEEN 7313 MILLION AND 7605 MILLION OR 625 TO 650 A SHARE AND FOR 1994 HE SAID THE COMPANY COULD EXCEED PROJECTIONS OF BETWEEN 8483 MILLION AND 936 MILLION OR 725 TO 8 A SHARE IF THE JAPANESE AND EUROPEAN ECONOMIES BEGIN TO IMPROVE WHICH WOULD BOLSTER ITT'S FOREIGN OPERATIONS STILL HE CAUTIONED ANALYSTS ABOUT 1993 FIRSTQUARTER EXPECTATIONS DON'T JUST DIVIDE YOUR YEARLY NUMBER IN QUARTERS HE WARNED OUR FIRST QUARTER TENDS TO BE A LITTLE WEAKER THAN THE OTHER THREE HE SAID ITT WILL CONTINUE TO BUY BACK ITS SHARES THE COMPANY HAS PURCHASED ABOUT 32 MILLION SHARES AT AN AVERAGE PRICE OF JUST OVER 66 A SHARE UNDER A 25 MILLIONSHARE BUYBACK AUTHORIZED IN MID1992 ANALYSTS EXPRESSED CONCERN THAT THE COMPANY MIGHT SPEND TOO MUCH IN ITS PLANNED ENTRY INTO THE US CASINO MARKET ITT'S SHERATON HOTEL HAS GAMING OPERATIONS OVERSEAS AND RECENTLY HIRED GAMING EXECUTIVE JOHN V GIOVENCO FROM HILTON HOTELS CORP WE WANT TO MAKE SURE WE DO WHAT MAKES SENSE FOR US MR ARASKOG SAID AND WHAT WE MAY END UP DOING IS BUILDING A PROJECT OF OUR OWN AND A GOOD HOTEL WOULD COST 100 MILLION MAYBE 200 MILLION ITT CURRENTLY OWNS LAND IN LAS VEGAS AND HAS APPLIED FOR GAMING PERMITS IN BOTH NEW JERSEY AND NEVADA THE COMPANY ALSO PLANS TO ASK SHAREHOLDERS TO APPROVE A CHANGE IN THE COMPANY'S CHARTER THAT WOULD MEET CERTAIN REQUIREMENTS OF NEW JERSEY LAWS COVERING COMPANIES OPERATING CASINOS IN THE STATE 9303050077 930305 WORLD MARKETS STOCK PRICES DRIFT DOWN IN TOKYO FALL IN LONDON FOLLOWING BIG GAINS LOSE GROUND IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DRIFTED LOWER IN QUIET DEALINGS THURSDAY AS THE YEN'S STRENGTH CONTINUED TO PRESSURE EXPORTERS LONDON SHARES FELL FINISHING NEAR THE DAY'S LOWS IN A CONSOLIDATION OF RECENT GAINS EQUITIES ALSO LOST GROUND IN FRANKFURT WHERE THE MARKET CLOSED BEFORE THE GERMAN CENTRAL BANK SAID IT LEFT INTEREST RATES UNCHANGED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 1033 POINTS WEDNESDAY LOST 9431 TO 1675961 ON FRIDAY IN TOKYO THE NIKKEI INDEX ROSE 8668 POINTS TO CLOSE THE MORNING SESSION AT 1684629 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 230 MILLION SHARES DOWN FROM 2514 MILLION SHARES WEDNESDAY LOSERS SWAMPED GAINERS 656311 THE NIKKEI CONTINUED TRADING IN A NARROW RANGE THIS TIME BETWEEN 1672148 AND 1684067 THE YEN'S STRENGTH WHICH CUTS INTO THE VALUE OF EXPORTERS' OVERSEAS EARNINGS WAS THE MAIN FACTOR DEPRESSING SENTIMENT AND WEAKNESS IN THE CONSUMER ELECTRONICS SECTOR HELPED DEEPEN THE MARKET'S PESSIMISTIC OUTLOOK MORE AGGRESSIVE BUYING BY PUBLIC PENSION FUNDS BELOW 16800 ON THE NIKKEI WHERE MANY TRADERS HAD EXPECTED TO FIND FIRM SUPPORT PROMPTED EXPECTATIONS OF CONTINUED ACTIONS TO PROVIDE THAT SAFETY NET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 138 POINTS TO 29048 NEAR THE INTRADAY BOTTOM OF 29025 THE FT 30STOCK INDEX FELL 83 POINTS TO 22563 VOLUME WAS 6601 MILLION SHARES COMPARED WITH 7103 MILLION SHARES A DAY EARLIER AFTER RISING TO ALLTIME HIGHS A DAY EARLIER LONDON PRICES FOUND LITTLE FOLLOWUP BUYING AS INVESTORS PAUSED THIS LEFT A DROP IN THE STOCKINDEX FUTURES MARKET TO PULL STOCK PRICES LOWER IN ITS WAKE A MAJOR BEARISH THEME WAS PROFIT WEAKNESS IN THE BANKING SECTOR DESPITE STOCKS' DECLINES PARTICIPANTS SAID THE MARKET REMAINED UNDERPINNED BY OPTIMISM ABOUT PROSPECTS FOR IMPROVEMENT IN THE BRITISH ECONOMY THE MARKET HAD LITTLE REACTION TO THE ANNOUNCEMENT THAT GERMAN INTEREST RATES WERE LEFT UNCHANGED IN FRANKFURT THE DAX 30STOCK INDEX FELL 633 POINTS TO 168740 TRADING WAS QUIET AS THE MARKET AWAITED A DECISION FROM THE GERMAN BUNDESBANK ON INTEREST RATES BUT THE MARKET CLOSED A FEW MINUTES BEFORE THE CENTRAL BANK SAID IT HADN'T ALTERED POLICY PRICES FELL ON POSITIONSQUARING PARIS STOCKS FELL ON DISAPPOINTMENT THAT THE GERMAN CENTRAL BANK FAILED TO CUT INTEREST RATES MILAN EQUITIES ROSE IN A POSITIVE MOOD ON CORPORATE NEWS SHRUGGING OFF THE GERMAN RATE INACTION SHARES WERE LITTLE CHANGED IN MADRID STOCKHOLM AND ZURICH WHERE WAITS FOR BUNDESBANK NEWS KEPT MARKETS ESSENTIALLY TRENDLESS AMSTERDAM STOCKS THOUGH WERE MOSTLY HIGHER BUOYED BY BETTERTHANEXPECTED CORPORATE EARNINGS REPORTS IN HONG KONG POLITICAL BULLISHNESS AND A GENEROUS BUDGET PROPOSAL FOR THE COLONY COMBINED TO CATAPULT SHARES TO ALLTIME HIGHS DESPITE RESISTANCE AROUND 6500 ON THE HANG SENG INDEX WHICH CLIMBED 3116 POINTS TO 646780 BANKS CONTINUED TO GAIN WHILE PROPERTY COMMERCIAL AND INDUSTRIAL ISSUES FIRMED TAIPEI PRICES SOARED ON STRONG PERFORMANCES BY FINANCE AND MARINE STOCKS AND THOSE LINKED TO CHINA IN MANILA DESPITE A BOMB THREAT STOCKS ROSE IN A BULLISH TREND SEOUL SHARES PLUNGED ON CONTINUED BEARISHNESS AND LARGECAPITALIZATION ISSUES INCLUDING BIG MANUFACTURING BANK AND SECURITIES SHARES TUMBLED FURTHER WELLINGTON STOCKS FELL SHARPLY PARTLY ON CORPORATE CAPITALRAISING PLANS AMONG CORPORATE DEVELOPMENTS IN LONDON LADBROKE GROUP EASED 1 PENCE TO 199 PENCE 289 THE LEISURE CONCERN WHICH OWNS HILTON HOTELS OUTSIDE THE US SAID ITS 1992 PRETAX PROFIT PLUNGED 81 TO 401 MILLION 581 MILLION FROM A YEAR EARLIER BECAUSE OF A 1467 MILLION PROPERTY PROVISION OPERATING PROFIT FELL 6 TO 1868 MILLION IN LINE WITH MARKET EXPECTATIONS LADBROKE MAINTAINED ITS DIVIDEND AT 1115 PENCE A SHARE NOTING THIS REPRESENTED A RISE FROM 1093 PENCE WHEN TAKING INTO ACCOUNT A RECENT SHARE ISSUE BARCLAYS PLUNGED 41 OR 95 TO 392 THE COMMERCIAL BANK POSTED A FAR BIGGERTHANEXPECTED 1992 PRETAX LOSS OF 242 MILLION THE FIRST ANNUAL DEFICIT IN ITS 97YEAR HISTORY COMPARED WITH YEAREARLIER PRETAX PROFIT OF 533 MILLION AS RECESSION SWELLED CHARGES FOR BAD AND DOUBTFUL DEBTS TO 253 BILLION BARCLAYS RESPONDED BY CUTTING THE DIVIDEND 28 TO 1515 PENCE A SHARE IN FRANKFURT BASF FELL 16 MARKS TO 2296 MARKS 13937 THE CHEMICAL COMPANY SAID IT WOULD TIGHTEN ITS ORGANIZATION BY COMBINING SEVERAL OF ITS INDUSTRIAL AND COUNTRY SECTORS AMONG THE MOVES WHICH WON'T INVOLVE LAYOFFS THE FIBERS AND FIBER PREPRODUCTS SECTORS WILL BE COMBINED INTO ONE USBASED FIBER PRODUCTS UNIT ON APRIL 1 THE LATIN AMERICA NORTH UNIT'S ACTIVITIES WILL BE FOLDED INTO THE NORTH AMERICAN CONSUMER PRODUCTS UNIT ON JULY 1 AND MANAGEMENT OF EASTERN EUROPE AND GULF STATES WILL BE COMBINED JAN IN AMSTERDAM PHILIPS ELECTRONICS SOARED 110 GUILDERS OR 51 TO 2250 GUILDERS 1215 DESPITE ITS EARNING REPORT THE CONSUMER ELECTRONICS MAKER POSTED A 1992 NET LOSS OF 900 MILLION GUILDERS 4858 MILLION COMPARED WITH 1991 PROFIT OF 112 BILLION GUILDERS RESTATED FOR ACCOUNTING CHANGES PHILIPS ALSO OMITTED ITS DIVIDEND FOR 1992 BUT PHILIPS ALSO SAID IT WOULD SLASH CAPITAL SPENDING AND CUT AS MANY AS 15000 JOBS WORLDWIDE OVER THE NEXT YEAR TO TRIM COSTS AND RETURN TO PROFITABILITY LAST YEAR 10200 JOBS WERE CUT LEAVING THE TOTAL STAFF AT 252000 DOWN 19 FROM FIVE YEARS EARLIER DSM ROSE 160 OR 22 TO 7320 THE CHEMICAL COMPANY'S 1992 PROFIT DROPPED 57 TO 224 MILLION GUILDERS AS THE DECLINE IN GLOBAL CHEMICAL MARKETS ACCELERATED IN THE SECOND HALF DSM ALSO HALVED ITS DIVIDEND TO 4 GUILDERS AN ORDINARY SHARE THE RESULTS WERE BETTER THAN SOME DOOMSAYERS HAD PREDICTED AND JUST THE MAKING OF A PAYOUT CHEERED SOME INVESTORS HEINEKEN ROSE 120 TO 18750 BUOYED BY A ONETIME GAIN ON THE SALE OF LAND THE BREWER'S 1992 NET INCOME JUMPED 27 TO 546 MILLION GUILDERS EXCLUDING THE 101 MILLIONGUILDER GAIN PROFIT ROSE 13 EXCEEDING THE 10 RISE MANY ANALYSTS HAD EXPECTED STILL HEINEKEN MAINTAINED ITS ANNUAL DIVIDEND AT 350 GUILDERS 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 9303050076 930305 LEISURE & ARTS THE GALLERY A SHOWCASE FOR POLITICAL CORRECTNESS BY DEBORAH SOLOMON NEW YORK THE 1993 WHITNEY BIENNIAL EASILY QUALIFIES AS THE MOST DISTURBING MUSEUM SHOW IN LIVING MEMORY THE BIENNIAL OF COURSE HAS ALWAYS BEEN A PROBLEMATIC AFFAIR AS IF TAKING ITS CUE FROM THE WORLD OF FASHION IT HAS TENDED TO FAVOR THE FRENETIC PURSUIT OF NOVELTY OVER THE SOBER APPROACH YOU MIGHT EXPECT OF A MUSEUM IN THE PAST DECADE THE SHOW HAS BEEN SO MIRED IN THE HYPE AND HOOPLA OF THE CONTEMPORARY SCENE IT SOMETIMES SEEMED AS IF ANY ART OBJECT THAT CAUSED A STIR IN A SOHO GALLERY WAS AUTOMATICALLY TRUCKED UPTOWN TO MADISON AVENUE AND GIVEN AN ANOINTED PLACE ON THE WALLS OF THE WHITNEY MUSEUM OF AMERICAN ART THERE ARE MANY DIFFERENT ROUTES TO MUSEOLOGICAL FAILURE AND THE NEW BIENNIAL WHICH OPENED YESTERDAY AND REMAINS UP THROUGH JUNE 20 FAILS IN AN ALLNEW WAY IN AN ATTEMPT TO ESCAPE ITS TRADITIONAL ARTBYCOMMITTEE APPROACH AND THE UNFOCUSED NATURE OF PAST EXHIBITIONS THE MUSEUM PUT THE SHOW IN THE CUSTODY OF A HEAD CURATOR ELISABETH SUSSMAN AND DECIDED TO GO WITH A SINGLE THEME SOCIAL INEQUITY BIENNIAL REGULARS SUCH AS JASPER JOHNS AND ROY LICHTENSTEIN HAVE BEEN BANISHED IN FAVOR OF A YOUNGER LESSERKNOWN SET WHOSE ART IS DEDICATED TO THE POLITICS OF RACE AND GENDER AND SO THE SHOW THAT WAS CONCEIVED IN 1932 AS A SURVEY OF THE BEST PAINTING AND SCULPTURE IN AMERICA HAS BECOME A SHOWCASE FOR POLITICAL CORRECTNESS IN THIS YEAR'S BIENNIAL PAINTING WHICH MS SUSSMAN LIKES TO DISMISS AS A TOOL OF THE RULING CLASS IS OUT AND INSTALLATIONS CONTRIVED FROM NONTRADITIONAL MEDIA ARE IN OF THE 80PLUS ARTISTS IN THE SHOW ABOUT HALF HAVE CHOSEN FILM AND VIDEOTAPE AS THE PROPER MEDIUM IN WHICH TO RUMINATE ON THEIR VICTIMIZATION BY AMERICA'S MORES AND INSTITUTIONS THERE ARE SO MANY TELEVISION SCREENS CURRENTLY INSTALLED AT THE WHITNEY IT'S LIKE BEING INSIDE A CRAZY EDDIE STORE AND JUST AS NOISY WE'D ALL LIKE TO LIVE IN A MORE EQUITABLE SOCIETY ONE FREE FROM THE INDIGNITIES OF RACISM AND SEXISM YET NOBLE IDEALS DO NOT NECESSARILY MAKE FOR NOBLE ART AND WHAT'S DISAPPOINTING IS THE WHITNEY'S EAGERNESS TO DISPLAY MERE AGITPROP THIS IS A BIENNIAL IN WHICH AESTHETIC INTERESTS PLAY SO NEGLIGIBLE A ROLE YOU DON'T EVEN HAVE TO BE AN ARTIST TO EXHIBIT GEORGE HOLLIDAY IS A 33YEAROLD PLUMBINGPARTS SALESMAN WHO PURCHASED A VIDEO CAMERA LAST YEAR AND HAPPENED TO TURN IT ON WHEN RODNEY KING WAS ARRESTED ACROSS THE STREET FROM HIS HOUSE YOU CAN WATCH ALL 10 MINUTES OF HIS FOOTAGE AT THE WHITNEY AND FIND MR HOLLIDAY IDENTIFIED IN THE CATALOG JUST LIKE THE OTHER ARTISTS BORN IN TORONTO 1959 LIVES IN LOS ANGELES THE BIENNIAL MIGHT BE DESCRIBED AS A THEME PARK OF THE OPPRESSED UPSTAIRS THERE'S A READING ROOM LINED WITH BOOKS ON EXPLOITATION DOWNSTAIRS THERE ARE ACTUAL AMERICAN INDIAN ARTISTS CAVORTING IN CAGES AND WHEN YOU FIRST COME INTO THE LOBBY OF THE MUSEUM YOU'RE HANDED INSTEAD OF A TICKET A METAL BUTTON EMBLAZONED WITH A HOSTILE MESSAGE A WORD OR PHRASE FROM A SENTENCE BY THE LA ARTIST DANIEL MARTINEZ I CAN'T EVER IMAGINE WANTING TO BE WHITE MY BUTTON READ EVER WANTING AN UNWITTINGLY APT APPRAISAL OF THE WORKS TO FOLLOW MOST OF THE POLITICS IN THE '93 BIENNIAL ARE SEXUAL POLITICS EXPLORED WITH ALL THE SUBTLETY OF A SLEDGEHAMMER SOME OF THE WORKS SEEM DESIGNED EXPRESSLY TO DISGUST AND REPULSE CINDY SHERMAN POSES FOR HER PHOTOGRAPHIC SELFPORTRAITS WITH DILDOS AND PROSTHETIC BREASTS YOU THINK THE SHOW CAN'T GET ANY MORE GROTESQUE UNTIL YOU STUMBLE ONTO THE VERY NEXT INSTALLATION THE SWEET AND PUNGENT SMELL OF SUCCESS BY SUE WILLIAMS THE WORK MIGHT BETTER BE CALLED BULIMIA CORNER IT COMES COMPLETE WITH A CARTOONISH MEDITATION ON EATING DISORDERS AS WELL AS A BIG SPLAT OF SIMULATED VOMIT IN THE MIDDLE OF THE FLOOR MATTHEW BARNEY GIVES THE GIRLS A RUN FOR THEIR MONEY IN HIS OWN EXALTATION OF THE PHYSICALLY OBNOXIOUS A VIDEO PROJECT ENTITLED DRAWING RESTRAINT 7 FILLS A GALLERY WITH A SILENT STEADY FLICKER OF BEASTLY IMAGES ON ONE SCREEN A MAN IS CONDEMNED TO CHASE HIS TACKEDON TAIL WE SEE HIM SPINNING HELPLESSLY AGAINST A BLUE VOID ON A SECOND SCREEN TWO MEN COSTUMED AS SATYRS HOP INTO A LIMOUSINE FOR A RIDE THROUGH THE PROVERBIAL FREUDIAN TUNNEL A FANTASY THAT WOULD BE DISTURBING ENOUGH WITHOUT THE ADDED SADOMASOCHISTIC SPECTACLE OF A SATYR FLAYING HIS OWN SKIN I'M ALL FOR SEXUALLY SEARCHING ART SO LONG AS IT'S ARTISTICALLY ENGAGING YET MUCH OF THE WORK IN THE CURRENT BIENNIAL FOLLOWS THE MAPPLETHORPE AESTHETIC PUTTING SENSATIONALISM AHEAD OF EVERYTHING ELSE HAS MS SUSSMAN CHOSEN ANYTHING WORTHWHILE FRED WILSON'S RE CLAIMING EGYPT WITH ITS PSEUDOARCHAEOLOGICAL BUSTS OF QUEEN NEFERTITI AND A DISPLAY CASE FILLED WITH OTHER FAUXEGYPTIAN ARTIFACTS EACH LABELED MINE IS A FUNNY STYLISH COMMENTARY ON THE IMPERIALIST IMPULSES THAT HAVE OFTEN FUELED THE COLLECTING OF ART AND KIKI SMITH'S MOTHER STANDS APART FROM THE FRAY IN ITS QUIET ELOQUENCE MS SMITH HAS AFFIXED TWO GLASS FEET TO A WALL AND SPREAD LARGE GLASS BEADS UNDER THEM TO SUGGEST BOTH TEARS AND BABIES IN MUCH THE SAME WAY THAT A FRAGMENT FROM AN ANCIENT STONE FIGURE CAN EVOKE A LOST CIVILIZATION MS SMITH'S GLASS FEET HAVE A DELICATE GHOSTLY PRESENCE AND HER MOTHER IS A MOURNFUL IMAGE OF MATERNITY TOO BAD THAT SO FEW OTHER WORKS MANAGE TO ENGAGE OR INSPIRE THIS UNHAPPY STATE OF AFFAIRS IS PRESUMABLY WHAT THE WHITNEY TRUSTEES SOUGHT TO AVOID WHEN THEY FIRED TOM ARMSTRONG THEIR LONGTIME DIRECTOR IN 1990 CERTAIN TRUSTEES CLAIMED AT THE TIME THAT THE MUSEUM HAD LOST ALL SEMBLANCE OF SERIOUSNESS UNDER HIS LEADERSHIP AND HAD SUCCUMBED TO THE PRESSURES OF FASHION THEN DAVID ROSS WAS BROUGHT IN FROM THE INSTITUTE OF CONTEMPORARY ART IN BOSTON OSTENSIBLY TO CHART A MORE REASONABLE COURSE FOR THE WHITNEY YET THE '93 BIENNIAL WITH ITS SLOGANEERING AND DESPERATE EAGERNESS TO SHOCK INDICATES THAT UNDER MR ROSS THE MUSEUM HAS MOVED ONLY THAT MUCH FURTHER FROM THE TRUE INTERESTS OF ART AND CONTINUES TO ALIENATE AN EVERGROWING COMMUNITY OF AMERICAN ARTISTS WITH ITS NARROW THINKING WHAT DO THE TRUSTEES REALLY WANT THEY OBVIOUSLY NEED TO DECIDE WHETHER TO SELL OFF THE HOPPERS AND CONTINUE THE INTOXICATING PURSUIT OF THE NEWFANGLED OR GET DOWN TO THE LESS FLASHY BUSINESS OF DOING SUBSTANTIAL SHOWS 9303050075 930305 POTOMAC WATCH WHY AMERICANS DON'T TRUST REPUBLICANS BY PAUL A GIGOT WHEN REPUBLICAN SEN PHIL GRAMM ANNOUNCED HIS BUDGET PLAN LAST WEEK THE OPPOSITION LEAPT INTO ACTION REPUBLICAN LEADER BOB DOLE WAS SOON ON THE SENATE FLOOR ANNOUNCING HIS OWN VAGUE ALTERNATIVE TO THE GRAMM ALTERNATIVE OPPOSITION THE RESPONSE HAD FOLKS CHORTLING IN THE CLINTON WHITE HOUSE INSTEAD OF ATTACKING THE PREMISES OF THE PRESIDENT'S PLAN THE SENATE'S TWO MOST PROMINENT REPUBLICANS WERE IN EFFECT DEBATING EACH OTHER AMONG HIS MANY GOOD FORTUNES SUCH AS INHERITING 48 ECONOMIC GROWTH AND LOW INFLATION PRESIDENT CLINTON HAS SO FAR BEEN ABLE TO COUNT ON A FRACTIOUS CONFUSED GOP SO PERHAPS IT WAS WITH IRONY AFORETHOUGHT THAT ON HIS VISIT TO CAPITOL HILL THIS WEEK MR CLINTON PRESENTED HOUSE GOP LEADER BOB MICHEL WITH A CHICAGO CUBS CAP ONLY THE CUBS HAVE A LONGER RECORD OF FUTILITY THAN HOUSE REPUBLICANS IF THIS SEEMS HARSH KEEP IN MIND THAT WITH DEMOCRATS IN THE WHITE HOUSE REPUBLICANS IN CONGRESS MATTER AGAIN THEIR VERY IRRELEVANCE IN VOTES MAKES THEM RELEVANT REGARDING IDEAS IF WHEN AMERICANS SOUR ON MR CLINTON'S SUBURBAN NEW DEAL THEY ARE GOING TO WANT SOMETHING ELSE UNLIKE TEXAS CULT LEADER DAVID KORESH REPUBLICANS CAN'T AFFORD TO WAIT FOR A SIGN FROM GOD OR EVEN FROM AN ERSATZ DEITY LIKE ROSS PEROT ONE CAUSE OF GOP MALAISE IS A PRESIDENTIAL HANGOVER AFTER 12 YEARS OF CONTROLLING THE WHITE HOUSE REPUBLICANS CAN'T IMAGINE THEMSELVES IN OPPOSITION MR DOLE SAYS HE STILL WANTS TO BE A PLAYER NEW MEXICO'S PETE DOMENICI THE SENATE GOP'S BUDGET EXPERT HAS SOUNDED HURT THAT MR CLINTON HASN'T CONSULTED HIM ONLY SLOWLY HAVE THEY REALIZED THAT THIS PRESIDENT INTENDS TO ROLL OVER NOT WITH THEM REPUBLICANS HAVE FORGOTTEN THE VIRTUES OF LOSING WHEN MISSISSIPPI SEN THAD COCHRAN RECENTLY PROPOSED TO WIPE OUT THE SPECIAL COMMITTEE ON AGING A NEEDLESS PLATFORM FOR GRANDSTANDING HE GOT ONLY 30 VOTES MANY GOP SENATORS WERE GLUM BUT THE VOTE MIGHT HAUNT SOME DEMOCRATIC INCUMBENTS WHO WILL HAVE TO DEFEND A BLOATED CONGRESS IN 1994 THAT'S JUST THE STRATEGY SENATE REPUBLICANS PURSUED TO GREAT EFFECT IN THE JIMMY CARTER YEARS THEY CRAFTED AN AVERAGE OF A DOZEN AMENDMENTS A MONTH TO FORCE POLITICALLY DIFFICULT VOTES THAT HELPED DEFEAT 12 DEMOCRATS IN 1980 A SECOND PROBLEM IS INTERNAL RIVALRY MR DOLE DOESN'T LIKE COMPETING SPOKESMEN ESPECIALLY MR GRAMM WHOM HE RIGHTLY REGARDS AS A RIVAL FOR THE 1996 GOP NOMINATION MR GRAMM NEVER CONSULTED MR DOLE BEFORE HE OFFERED HIS BUDGET PLAN LAST WEEK SO IT SURPRISED NO ONE THAT WHEN MR DOLE CHOREOGRAPHED THE QUESTIONERS FOR PRESIDENT CLINTON'S LUNCH WITH SENATE REPUBLICANS THIS WEEK MR GRAMM WASN'T ONE OF THEM WHEN COLORADO SEN HANK BROWN OFFERED HIS OWN PLAN FOR 679 BILLION IN MOSTLY SENSIBLE SPENDING CUTS THIS WEEK A REPORTER ASKED MR DOLE IF IT WAS THE REPUBLICAN PLAN NO THE GOP LEADER SNAPPED IT'S THE BROWN PLAN SO MUCH FOR COORDINATING A MESSAGE THE BIGGEST GOP WORRY HOWEVER IS A POSTBUSH SPIRITUAL DEPRESSION REPUBLICANS AREN'T SURE WHAT THEY REALLY BELIEVE MR DOLE TELLS AUDIENCES THAT I'M NOT ONE OF THOSE SUPPLYSIDERS WHO THINK WE SHOULD JUST CUT TAXES WE TRIED THAT THIS REPLAY OF OLD DEBATES ONLY HELPS MR CLINTON TRASH THE ENTIRE GOP ERA AND THUS MAKE HIS OWN TAX PLANS MORE CREDIBLE ON HEALTH CARE SENS NANCY KASSEBAUM KANSAS AND JACK DANFORTH MISSOURI ARE FLIRTING WITH PREMIUM CAPS THAT AMOUNT TO PRICE CONTROLS ON INSURANCE HILLARY CLINTON IS COURTING MRS KASSEBAUM BECAUSE SHE KNOWS THIS IDEA IS CLOSE TO THE PRICE CONTROLS AND GOVERNMENT RATIONING THAT HER OWN HEALTH TEAM IS LIKELY TO PROPOSE EVEN ON SPENDING CUTS REPUBLICANS ARE SO FAR NIBBLING ONLY AT THE MARGINS OF MR CLINTON'S GRAND POLITICAL VISION MR CLINTON WANTS TO COAX REPUBLICANS INTO THE MURK OF ACCOUNTING DETAILS HE KNOWS THEY'LL BE PLAYING ON HIS TURF HE'LL THEN HAPPILY CONCEDE MORE TOKEN CUTS EVEN AS HIS MUCH BIGGER PLAN TO RELEGITIMIZE BIG GOVERNMENT ADVANCES TALKING ABOUT THE MIX OF SPENDING AND TAXES WILL FALL ON DEAF EARS SAYS FRANK LUNTZ WHO WAS ROSS PEROT'S CAMPAIGN POLLSTER PEROT VOTERS WANT TO KNOW WHAT IS YOUR VISION ABOUT HOW TO REDUCE THE DEFICIT AND IMPROVE THE ECONOMY SPENDING CUTS ARE FINE EVEN NECESSARY BUT THEY HAVE TO BE TIED TO A BROADER IDEA ABOUT LIMITING A GOVERNMENT THAT BURDENS THE MIDDLE CLASS MR CLINTON MR LUNTZ ADDS IS FOLLOWING STRATEGIST JAMES CARVILLE'S ADVICE TO USE PROBUSINESS PROENTREPRENEURSHIP LANGUAGE TO SELL LARGER GOVERNMENT REPUBLICANS HAVE A CHANCE TO EXPOSE THIS AS A FRAUD BUT ONLY IF THEY OFFER A PRINCIPLED VISION REMARKABLY ENOUGH THAT'S MORE OR LESS WHAT REPUBLICANS DID IN THE LATE 1970S A KANSAS SENATOR BY THE NAME OF BOB DOLE FOUGHT TO INDEX INCOME TAXES FOR INFLATION AN IDEA RONALD REAGAN LATER COOPTED A WISCONSIN CONGRESSMAN THE LATE BILL STEIGER CHANGED THE DEBATE OVER ECONOMIC GROWTH BY PROPOSING TO CUT THE CAPITALGAINS TAX THOSE MEMORIES DIM AS THEY ARE MAY EVEN BE RETURNING IN MEETINGS THIS WEEK EVEN MODERATE REPUBLICANS WERE TALKING ABOUT PROPOSING AN ALTERNATIVE BUDGET WITHOUT ANY NEW TAXES THE NEXT STEP IS TO BELIEVE THAT INDEXING CAPITAL GAINS AND OTHER INCENTIVES TO SAVE AND INVEST CAN ALSO FIND A NEW AUDIENCE TODAY THE REAL CURE FOR REPUBLICAN MALAISE IS TO RECLAIM THE SPIRIT OF STEIGER OR EVEN OF THE YOUNGER BOB DOLE 9303050074 930305 BUSINESS BRIEF GOODMAN FIELDER LTD AUSTRALIAN CONCERN'S PROFIT ROSE 71 IN ITS FIRST HALF GOODMAN FIELDER LTD AN AUSTRALIABASED INTERNATIONAL FOOD COMPANY REPORTED THAT ITS PROFIT ROSE 71 TO 1318 MILLION AUSTRALIAN DOLLARS US932 MILLION IN THE FIRST HALF ENDED DEC 31 BUT PART OF THE GAIN CAME FROM THE SALE OF A UNIT PROFIT WAS A77 MILLION IN THE YEARAGO PERIOD GOODMAN'S PROFIT AFTER TAX BUT BEFORE ACCOUNTING FOR SOCALLED ABNORMAL OR UNUSUAL ITEMS ROSE 19 TO A655 MILLION FROM A549 MILLION THE COMPANY BOOKED A A663 MILLION ABNORMAL PROFIT ON THE SALE OF THE NEW ZEALANDBASED WATTIE FOODS BUSINESSES SALES EDGED UP 48 TO A209 BILLION US148 BILLION FROM 199 BILLION THE COMPANY LEFT THE DIVIDEND UNCHANGED AT FIVE AUSTRALIAN CENTS A SHARE MICHAEL NUGENT CHIEF EXECUTIVE OFFICER SAID HE WAS PLEASED TO REPORT THAT OPERATING PROFIT CONTINUED TO GROW DESPITE THE IMPACT OF THE ONGOING RECESSION IN AUSTRALIA AND NEW ZEALAND AND THE SLOWDOWN IN ECONOMIC ACTIVITY IN EUROPE 9303050073 930305 BUSINESS BRIEF CUBIC CORP SALE OF US ELEVATOR UNIT BRINGS 40 MILLION OF CASH CUBIC CORP SAID IT RECEIVED 40 MILLION IN CASH FROM THE FEB 17 SALE OF ITS US ELEVATOR CORP SUBSIDIARY TO THYSSEN HOLDING A UNIT OF THYSSEN AUFZUGE GMBH THE SAN DIEGO COMPANY WHICH DISCLOSED THE TERMS IN A SECURITIES AND EXCHANGE COMMISSION FILING ALSO SAID THAT UNDER TERMS OF THE SALE IT WILL RETAIN 20 MILLION OF 6 CUMULATIVE NONVOTING PREFERRED STOCK OF US ELEVATOR CUBIC SAID ITS NET BOOK VALUE OF ITS INVESTMENT IN US ELEVATOR WAS ABOUT 27 MILLION ON THE DATE OF THE SALE INCLUDING THE PREFERRED STOCK THE SUBSIDIARY ACCOUNTED FOR NEARLY 30 OF CUBIC'S FISCAL 1992 SALES FOR THE YEAR ENDED SEPT 30 1992 US ELEVATOR HAD OPERATING PROFIT OF 42 MILLION ON REVENUE OF 992 MILLION CUBIC SAID IT MAY REQUIRE THYSSEN TO PURCHASE THE PREFERRED STOCK AT ANY TIME OR THYSSEN MAY INITATE PURCHASE OF THE STOCK AFTER OCT 1 1994 THYSSEN IS AN INDUSTRIAL CONCERN WITH ELEVATOR OPERATIONS IN NEUHAUSEN GERMANY 9303050072 930305 FOREIGN EXCHANGE DOLLAR DROPS FURTHER OVER GERMANY'S RATE INTRANSIGENCE WEAK US ECONOMY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DISAPPOINTMENT OVER REPORTS OF STEADY GERMAN INTEREST RATES AND WEAK US ECONOMIC PERFORMANCE PUSHED THE DOLLAR LOWER YESTERDAY BUT PERSISTENT MARKET OPTIMISM ON BOTH FRONTS TRIMMED THE LOSSES DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16385 MARKS DOWN FROM 16460 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11678 YEN UP SLIGHTLY FROM 11665 YEN STERLING WAS TRADING AT 14555 UP FROM 14510 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11650 YEN AND AT 16405 MARKS WITH GERMANY'S ECONOMY REELING IN RECESSION MARKET SPECULATION HAD GROWN THAT YESTERDAY'S MEETING OF THE BUNDESBANK'S CENTRAL BANK COUNCIL WOULD RESULT IN AN EASING OF INTEREST RATES DEALERS SAID AS RUMORS OF A RATE CUT MOUNTED IN ASIAN TRADING THURSDAY INVESTORS BID UP THE DOLLAR AND UNLOADED MARKS BUT THE CENTRAL BANK LEFT ITS OFFICIAL RATES THE DISCOUNT AND LOMBARD UNCHANGED AND DIDN'T GIVE ANY HINT ABOUT WHEN IT MIGHT LOWER MONEY MARKET RATES SO NATURALLY WHEN THE MARKET DIDN'T GET WHAT IT WANTED THE DOLLAR HAD TO PULL BACK SAID THOMAS BENFER SENIOR MARKETING REPRESENTATIVE AT BANK OF MONTREAL IN NEW YORK CURRENTLY SHORTTERM MARKET INTEREST RATES IN GERMANY ARE ALMOST FIVE PERCENTAGE POINTS HIGHER THAN THOSE IN THE US MAKING IT COSTLY TO HOLD DOLLARS RATHER THAN MARKS THE DOLLAR PLUNGED MORE THAN ONE PFENNIG AFTER THE GERMAN CENTRAL BANK'S STATEMENT AS THE MARK GAINED ACROSS THE BOARD LATER UNEXPECTEDLY WEAK US ECONOMIC REPORTS DEEPENED THE DOLLAR'S MALAISE DEALERS SAID FIRSTTIME JOBLESS CLAIMS JUMPED 26000 IN THE WEEK ENDED FEB 20 THE LABOR DEPARTMENT SAID WELL BEYOND ECONOMISTS' EXPECTATIONS OF A 1000CLAIM RISE MEANWHILE THE COMMERCE DEPARTMENT SAID NEW FACTORY ORDERS FELL 13 IN JANUARY THE LARGEST DROP SINCE AUGUST'S 22 DECLINE ECONOMICALLY SPEAKING I DON'T THINK ANY OF THE NUMBERS TODAY WERE GOOD FOR THE DOLLAR SAID MORRIS ARMSTRONG MANAGER OF FOREIGN EXCHANGE AT GIROCREDIT BANK IN NEW YORK BUT HE SAID THAT DESPITE THE DUAL DISAPPOINTMENTS YOU'RE NOT SEEING MUCH OF A FOLLOWTHROUGH ON THE INITIAL BURST OF DOLLAR SELLING THE DOLLAR REBOUNDED SOLIDLY ABOVE 16350 MARKS LATE YESTERDAY HE NOTED PARTICIPANTS SAID BOTH THE BUNDESBANK'S RECALCITRANCE ON RATES AND THE US ECONOMIC NEWS WERE ONLY SHORTTERM SETBACKS FOR THE DOLLAR ALL IN ALL THE DOLLAR IS REALLY HOLDING UP VERY WELL HE SAID ON THE US SIDE SOME EASING OF THE RAPID RATE OF ECONOMIC GROWTH SEEN LATE IN 1992 WAS TO BE EXPECTED SAID GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK THESE ARE BACKANDFORTH NUMBERS HE SAID THE US ECONOMY ISN'T RECEDING INTO RECESSION HE ADDED MOST IMPORTANTLY HE SAID WE'RE DOING BETTER THAN EVERYBODY ELSE AND ROBERT BRUSCA CHIEF ECONOMIST AT NIKKO SECURITIES CO IN NEW YORK CALLED THE LACK OF A CUT IN GERMAN RATES ONLY A MINOR DISAPPOINTMENT THE BUNDESBANK'S GOING TO MOVE RATES FAIRLY SOON HE PREDICTED GERMANY'S DEEPENING ECONOMIC DISTRESS COULD FORCE ITS CENTRAL BANK TO MOVE BEFORE MARCH 30 DEALERS SAID PEOPLE FEEL CONFIDENT GERMAN RATES WILL BE GOING LOWER AT LEAST BY THE 18TH SAID BANK OF MONTREAL'S MR BENFER THE NEXT CENTRAL BANK COUNCIL MEETING IS SLATED FOR MARCH 18 9303050071 930305 REVIEW & OUTLOOK EDITORIAL ASIDES AMA GETS STIFFED WE KNOW THE STATUS QUO MUST CHANGE SAID ANOTHER SUPPLIANT TO THE CLINTON WHITE HOUSE HEALTHREFORM TASK FORCE GET LOST REPLIED THE CLINTONITES PERHAPS GIVING THE AMERICAN MEDICAL ASSOCIATION ABOUT AS MUCH RESPECT AS IT DESERVES FOR ITS GAME PLAN OF STRATEGIC SURRENDER THE WHITE HOUSE'S DEE DEE MYERS SAID LETTING THE AMA PARTICIPATE WOULD BE A CONFLICT OF INTEREST AND HEALTH CZAR HILLARY R CLINTON SPOKE WEDNESDAY OF THE NEED TO BEAT BACK THE POWERFUL LOBBIES AND SPECIAL INTERESTS THAT ARE ALREADY LINING UP TO DEFEAT ANY PLAN WE DEVELOP ON ANOTHER FRONT WE NOTE THAT THE AMERICAN PETROLEUM INSTITUTE IS PROMOTING A VAT TAX AS AN ALTERNATIVE TO A BTU TAX THIS ADMINISTRATION ISN'T TWO MONTHS OLD AND ALREADY SUBSTANTIAL PARTS OF THE COUNTRY ARE AT EACH OTHER'S THROATS IS THIS THE CHANGE 9303050070 930305 GAMAN' ADDS SPICE TO JAPANESE LIFE AND TO ITS TV FARE CULTURE THAT PRIZES ENDURANCE IS REWARDING THE QUALITY WITH CASH AND ATTENTION BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FIVE MEN BELLY UP TO THE COUNTER AT HELL RAMEN HYOTTOKO A RESTAURANT DECORATED WITH IMAGES OF DEVILS AS TV CAMERAS WHIR MORIHIRO YAMASHITA A 28YEAROLD BOXER BEGINS SLURPING A BOWL OF VERY SPICY NOODLES AND SOON HIS FACE IS DRIPPING WITH SWEAT MR YAMASHITA GAGS AS HE BITES INTO A PIECE OF SUSHI THAT HAS BEEN LOADED UP WITH A THICK WAD OF GREEN WASABI HORSERADISH NORMALLY JUST A SMIDGEN OF THAT CAN BRING TEARS TO THE EYES FINALLY HE DIGS INTO CURRIED RICE THAT HAS 120 TIMES THE USUAL SPICE POOR MR YAMASHITA SLAPS HIMSELF ON THE FACE AND TEARS OFF HIS PANTS DON'T TOUCH THAT DIAL YOU'RE WATCHING TV CHAMPION A POPULAR WEEKLY JAPANESE GAME SHOW MR YAMASHITA WAS NEVER A CHAMP IN THE RING BUT IN THIS TEST OF ENDURANCE HE BESTED HIS CLOSEST RIVAL BY THREE SPOONFULS OF CURRY TO BECOME JAPAN'S SUPERSPICINESS KING I FELT FAINT DURING THE SUSHI RECALLS MR YAMASHITA IN THE CURRY ROUND HE BRIEFLY LOST HIS EYESIGHT HALFWAY THROUGH MY TONGUE WENT NUMB MR YAMASHITA SAYS TV CHAMPION IS BUT ONE OF A NUMBER OF JAPANESE SHOWS IN WHICH CONTESTANTS VIE FOR MODEST PRIZES AND NATIONAL ATTENTION BY MAKING HEROIC DISPLAYS OF GAMAN OR ENDURANCE LONG A CHERISHED VIRTUE IN THIS HARDWORKING NATION IN A SOCIETY THAT DEMANDS CONFORMITY THE PROGRAMS ALSO GIVE ORDINARY PEOPLE A CHANCE TO STAND OUT FROM THE CROWD FOR JAPANESE THIS MAY BE THE EASIEST KIND OF TV PROGRAM TO ENJOY SAYS SOCIAL PSYCHOLOGIST HIROYOSHI ISHIKAWA OF SEIJO UNIVERSITY IN TOKYO GAMAN TESTS HAVE BEEN POPULAR SINCE THE 19TH CENTURY HE NOTES WELL BEFORE THE ADVENT OF TELEVISION IN THE SUMMER YOU'D SHUT YOURSELF IN A ROOM WEAR LOTS OF CLOTHES TURN ON SOME HEAT AND SEE HOW LONG YOU COULD STAND IT SAYS PROF ISHIKAWA THE TRADITION CONTINUES IN MODIFIED FORM WITH THE ANNUAL TRANSAMERICA ULTRA QUIZ WHICH HAS BECOME A NATIONAL INSTITUTION SINCE IT WAS FIRST TELEVISED 17 YEARS AGO CONTESTANTS TRAVEL FROM TOKYO TO NEW YORK TAKING TRIVIA TESTS AT ABOUT A DOZEN TOURIST SPOTS ALONG THE WAY ONE MISTAKE TOO MANY AND A PLAYER IS HUSTLED ONTO THE FIRST FLIGHT BACK TO JAPAN THE LATEST INSTALLMENT TAPED OVER A PERIOD OF WEEKS LAST SUMMER BEGAN IN A TOKYO STADIUM WHERE 26121 PLAYERS FIELDED TRUEFALSE QUESTIONS THE GROUP OF 55 WHO SURVIVED THE PRELIMINARIES GOT TO BOARD A PLANE FOR GUAM FURTHER WINNOWING TOOK PLACE IN HAWAII SAN FRANCISCO AND VALLEY FORGE PA BEFORE A FINAL ONEONONE ON A YACHT OFF MANHATTAN IN HAWAII THE PLAYERS WERE ROUSTED OUT OF BED AT 2 AM FOR A POP QUIZ THAT DRAGGED ON ALMOST TILL DAWN I STAYED UP ALL NIGHT THREE TIMES DURING THE 10 DAYS I WAS IN THE CONTEST SAYS HISANORI NOGAMI A 41YEAROLD FINANCIAL ANALYST FOR IBM JAPAN LTD LIKE OTHER LOSERS MR NOGAMI HAD TO PLAY A PUNISHMENT GAME FOR THE TV CAMERAS AFTER HE WAS ELIMINATED HIS HUMILIATION PAINTING A LINE DOWN AN AIRSTRIP NEARLY A MILE LONG ON A SUNNY 102DEGREE AFTERNOON ULTRA QUIZ IS ENTIRELY IN CHARACTER FOR A LAND WHERE EIGHTYEAROLDS CRAM FOR ENTRANCE EXAMS AND WEAR SHORTS TO SCHOOL IN WINTER YOU'VE GOT TO HAVE THE ATTITUDE THAT YOU ABSOLUTELY WON'T LOSE REFLECTS REIGNING 22YEAROLD CHAMP KENICHI TANAKA A JUNIOR AT TOKYO UNIVERSITY NO MATTER WHAT IF YOU DON'T HAVE STRONG WILL YOU CAN'T DO IT THE PLAYERS FIELDED SUCH QUESTIONS AS HOW DO YOU SAY USTR' US TRADE REPRESENTATIVE IN JAPANESE TO PREPARE MR TANAKA SAYS HE SUBSCRIBED TO THREE JAPANESE NEWSPAPERS AND 10 MAGAZINES BECAUSE ULTRA QUIZ' HAS LOTS OF CURRENTAFFAIRS QUESTIONS HE ALSO BELONGS TO HIS COLLEGE'S QUIZ RESEARCH COMMITTEE 70 STUDENTS WHO MEET FOUR HOURS EACH SATURDAY TO DRILL ONE ANOTHER WITH TRIVIA QUESTIONS MASATO IKUI TACKLED A SQUEALING BOAR AND LAY IN BED WITH IT ON A DECEMBER EPISODE OF LIVE LIVE LIVE LIVE DOWNTOWN A DATING SHOW HE WENT ON TO WIN A DATE AND A MILLION YEN 8300 IN PRIZE MONEY BUT MR IKUI SAYS HE WASN'T IN IT FOR THE CASH I LIKE TO EXPRESS MYSELF EXPLAINS THE 42YEAROLD CATERER MOST PEOPLE GO TO WORK GO HOME MAYBE PLAY GOLF I LIKE TO EXPOSE EVERYTHING THAT'S INSIDE ME SOME PARTICIPANTS SEEK EXPOSURE OF A DIFFERENT SORT CONSIDER SHIROI KOIBITO BATTLE ROYAL IN THE SNOW A LATEJANUARY SPECIAL THAT WAS SHOT ON THE FRIGID NORTHERN ISLAND OF HOKKAIDO A SHOW HOSTESS ROLLS A HUGE FOAM BALL DOWN AN INCLINE AT 10 COLLEGE STUDENTS DRESSED AS BOWLING PINS KNOCKING NINE TO THE SNOW SHE FLATTENS THE 10TH FOR THE SPARE GAMAN SPECTACLES OF COURSE AREN'T UNIQUE TO JAPAN AMERICA HAS PROGRESSED FROM GOLDFISHSWALLOWING AND PHONEBOOTHPACKING TO MUDWRESTLING AND THE TV SHOW AMERICAN GLADIATORS REPORTED TO BE A FAVORITE OF PRESIDENT CLINTON ALTHOUGH THE JAPANESE SHOWS MAY OFFER A GLIMPSE INTO THE NATIONAL PSYCHE THEY AREN'T FOR EVERYONE INDEED SOME JAPANESE CONTEND GAMAN IS PASSE ESPECIALLY AMONG THE SPOILED YOUNGER GENERATION BUT TRY TELLING THAT TO NAONORI TSUNODA WHO SUFFERED INTERNAL BLEEDING AFTER PLACING THIRD IN THE SPICYFOOD CONTEST I'M THE KIND OF PERSON WHO LIKES TO CHALLENGE HIMSELF TO THE LIMIT SAYS THE 28YEAROLD RECORDCOMPANY EMPLOYEE IN COLLEGE MR TSUNODA SAYS HE PLACED EIGHTH IN A 30MAN GAMAN MEET IN WHICH HE WAS LASHED TO A WHEEL AND ROLLED THROUGH A POND IT'S A LITTLE SADISTIC ISN'T IT HE SAYS EVEN MACHO MEN HAVE THEIR OFF DAYS IN LAST NIGHT'S TV CHAMPION BROADCAST BOXER MR YAMASHITA LOST THE SUPERSPICINESS KING TITLE IN HIS FIRST DEFENSE I HAD A HANGOVER HE EXPLAINS FURTHERMORE TO CAPTURE THE ESSENCE OF GAMAN PROGRAMS SOMETIMES CHEAT A BIT IN TV CHAMPION'S FOREIGNER JAPANEXPERT CONTEST WHICH RAN LAST SPRING 30YEAROLD PHILIP SILVERSTEIN AND SEVERAL OTHER FOREIGN MEN FIELDED TRIVIA QUESTIONS IN JAPANESE BUT BEFORE RESPONDING EACH HAD TO GOBBLE SUCH JAPANESE DELICACIES AS A BOWL OF LIVE SHIROUO MATCHSTICKSIZED SQUIGGLING FISH MR SILVERSTEIN AND TWO OPPONENTS WERE LATER EXPECTED TO ANSWER THE FINAL ROUND OF QUESTIONS WHILE SITTING IN THE PAINFUL SEIZA MEDITATION POSITION BARE FEET TUCKED UNDER RUMP BACK RAMRODSTRAIGHT ONE OF THE HOSTS HAD THE CAMERA ZOOM IN ON THE FEET LOOK THEY'RE BLUE HE OBSERVED JABBING HIS FINGER INTO THEIR SOLES ANDY SMITH A 24YEAROLD AMERICAN WON THE TITLE AFTER ACING QUESTIONS ABOUT SUMO WRESTLING AND JAPANESE CULTURE TROUBLE IS MUCH OF THE CONTEST WAS FAKED MR SILVERSTEIN SAYS THE CONTESTANTS WERE SUPPLIED BY A TALENT AGENCY AND HE WAS PAID 15000 YEN A DAY FOR FOUR DAYS OF TAPING THE SHOW'S STAFF FED SOME QUESTIONS AND ANSWERS TO PLAYERS IN ADVANCE HE SAYS YOSHIHARU INUKAI THE SHOW'S PRODUCER SAYS TV CHAMPION HAD TO USE AN AGENCY BECAUSE THE EPISODE WAS FILMED BEFORE THE SERIES HAD ITS BROADCAST DEBUT LAST SPRING SO THERE WAS NO WAY TO ENLIST PLAYERS FROM AMONG THE VIEWING AUDIENCE AS THE SHOW STARTED DOING ONCE IT GOT OFF THE GROUND WE INPUT A CERTAIN DEGREE OF JAPANRELATED INFORMATION TO THE FIVE FINALISTS BEFOREHAND HE CONCEDES AND ALSO TOLD THEM SOME OF THE QUIZ ANSWERS STILL THE JAPANEXPERT CONTEST WASN'T TOTALLY RIGGED THOSE WERE REAL BLUE FEET SAYS MR SILVERSTEIN I REMEMBER LIMPING TO THE TRAIN STATION AFTER IT WAS OVER 9303050069 930305 INTERNATIONAL BRIEF BRITISH PETROLEUM CO OIL DISCOVERY IS REPORTED SOUTHWEST OF THE SHETLANDS BRITISH PETROLEUM CO SAID IT DISCOVERED OIL SOUTHWEST OF THE SHETLANDS IN WHAT MAY BE ONE OF THE LARGEST NORTH SEA FINDS SINCE MAGNUS WAS DISCOVERED IN 1974 THE COMPANY'S BP EXPLORATION UNIT SAID INITIAL ESTIMATES OF RECOVERABLE RESERVES RANGED FROM 250 MILLION BARRELS TO 500 MILLION BARRELS OF RELATIVELY HEAVY 25 DEGREES API OIL BP IS USUALLY CAUTIOUS ABOUT ITS ESTIMATES AND THE NORTH SEA FIELDS HAVE ON AVERAGE YIELDED MORE OIL THAN WAS INITIALLY ESTIMATED13 MORE ACCORDING TO NICK CLAYTON AN ANALYST AT SMITH NEW COURT A LONDON STOCKBROKER MAGNUS OIL RESERVES WERE INITIALLY ESTIMATED AT 400 MILLION BARRELS BUT UPWARD REVISIONS PUT THEM AT 560 MILLION BARRELS 10 YEARS LATER THE FIND LATE LAST YEAR WAS IN BLOCK 204/24A 105 MILES SOUTHWEST OF THE SHETLANDS BP OPERATES THE BLOCK WITH AN 80 INTEREST WITH ROYAL DUTCH/SHELL GROUP HOLDING THE REMAINDER 9303050068 930305 YOUR MONEY MATTERS WEEKEND REPORT THE 25 FACTS EVERY FUND INVESTOR SHOULD KNOW BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUNDS ARE MEANT TO PROVIDE A SIMPLE WAY FOR SMALL INVESTORS TO BUY INTO THE STOCK AND BOND MARKETS BUT FUND INVESTING ISN'T ALWAYS THAT SIMPLE HERE ARE 25 FACTS THAT EVERY MUTUAL FUND INVESTOR OUGHT TO KNOW GOOD PAST PERFORMANCE INDICATES THAT A FUND DID SOMETHING GOOD AT SOME TIME AND THAT'S IT SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER HE NOTES THAT A FUND'S BRILLIANT TRACK RECORD MAY HAVE BEEN BUILT BY A FUND MANAGER WHO HAS SINCE QUIT OR MIGHT BE THE RESULT OF ONE OR TWO SPECTACULAR YEARS THAT ARE UNLIKELY TO BE REPEATED ALTERNATIVELY THE FUND MAY HAVE DONE WELL OVER THE PAST THREE OR FIVE YEARS BECAUSE THE FUND'S INVESTMENT STYLE HAS BEEN IN VOGUE AND IS ON THE VERGE OF GOING OUT OF FAVOR ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES INC NAUTILUS FUND WAS THE TOPPERFORMING MUTUAL FUND IN 1980 LEXINGTON STRATEGIC INVESTMENTS CLAIMED THAT HONOR IN 1979 44 WALL STREET FUND IN 1975 AND SHERMAN DEAN FUND IN 1974 ALL FOUR FUNDS RANK AMONG THE NATION'S WORST PERFORMERS OVER THE PAST 10 YEARS LONGTERM LOSERS ARE FREQUENTLY NO 1 PERFORMERS OVER SHORT TIME PERIODS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BY CHOOSING THE PROPER CATEGORY AND THE PROPER TIME PERIOD VIRTUALLY ANY FUND IN EXISTENCE CAN CLAIM TO BE NO 1 MOST STOCK FUNDS PURSUE A SINGLE INVESTMENT STYLE THEY MIGHT FOR INSTANCE FAVOR GROWTH COMPANIES WHICH HAVE RAPIDLY INCREASING PROFITS OR VALUE STOCKS WHICH APPEAR CHEAP BASED ON CORPORATE ASSETS OR CURRENT EARNINGS IF A FUND'S INVESTMENT STYLE IS OUT OF FAVOR IT IS LIKELY TO LAG BEHIND THE MARKET THAT'S WHAT HAPPENED RECENTLY TO THE VALUEORIENTED VANGUARD WINDSOR FUND JOHN NEFF OVER AT WINDSOR FUND HAD A TERRIBLE YEAR IN 1990 NOTES GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER IF YOU HAD SOLD THE FUND YOU WOULD HAVE BEEN SORRY THIS IS A MAN WITH A GREAT TRACK RECORD PASADENA GROWTH FUND AND TWENTIETH CENTURY GIFTRUST INVESTORS GOT POUNDED IN THE 1990 BEAR MARKET BRANDYWINE FUND KAUFMANN FUND AND TWENTIETH CENTURY ULTRA INVESTORS WERE PUMMELED IN THE 1987 STOCK MARKET CRASH IF YOU SKIPPED THESE FUNDS BECAUSE OF THEIR ROTTEN BEAR MARKET PERFORMANCE YOU WOULD HAVE BEEN MAKING A GRAVE MISTAKE ALL OF THESE FUNDS RANK AMONG THE FUND INDUSTRY'S TOP LONGTERM PERFORMERS ACCORDING TO LIPPER ANALYTICAL STOCK FUNDS RETURNED 135 A YEAR OVER THE 10 YEARS THROUGH DECEMBER COMPARED WITH 162 FOR THE STANDARD & POOR'S 500STOCK INDEX FUNDS CHARGE ANNUAL EXPENSES THEY INCUR COSTS WHEN THEY TRADE STOCKS AND THEY GENERALLY KEEP AT LEAST 5 OF ASSETS IN CASH TO MEET REDEMPTIONS WHICH ACTS AS A DRAG ON FUND PERFORMANCE DURING BULL MARKETS ALL THESE THINGS CHIP AWAY AT RETURNS SAYS MR PERRITT MANY INVESTORS HAVE TAKEN TO BUYING INDEX FUNDS WHICH SIMPLY BUY THE STOCKS THAT MAKE UP A PARTICULAR STOCK MARKET INDEX AND THEREBY SEEK TO REPLICATE THE INDEX'S PERFORMANCE BUT VIRTUALLY ALL MONEY INVESTED IN INDEX FUNDS IS IN S&P 500STOCK INDEX FUNDS PEOPLE CONFUSE INDEXING WITH INDEXING THE S&P 500 SAYS MORNINGSTAR'S MR REKENTHALER A LOT OF PEOPLE THINK THE TWO ARE SYNONYMOUS THEY AREN'T THE S&P 500 INCLUDES ONLY US LARGECOMPANY STOCKS THAT MAKE UP ABOUT 70 OF THE DOLLAR VALUE OF THE US STOCK MARKET ANALYSTS SAY INVESTORS SHOULD ALSO CONSIDER INDEXING SMALLCOMPANY STOCKS AND FOREIGN STOCKS MUTUAL FUND COMPANIES CLASSIFY STOCK FUNDS WITH LABELS SUCH AS EQUITYINCOME GROWTH OR GROWTHANDINCOME BUT THESE CLASSIFICATIONS REFLECT A FUND'S INVESTMENT GOALS THEY DON'T TELL YOU WHAT INVESTMENT STYLE IS USED BY A FUND FUNDS CLASSIFIED AS GROWTH FUNDS FOR INSTANCE PAY SCANT ATTENTION TO A STOCK'S DIVIDEND YIELD AND INSTEAD EMPHASIZE POTENTIAL SHAREPRICE APPRECIATION WHEN PICKING STOCKS DESPITE THEIR NAME GROWTH FUNDS DON'T NECESSARILY BUY GROWTH STOCKS WHICH ARE THOSE THAT HAVE RAPIDLY INCREASING EARNINGS CONSIDER A FEW EXAMPLES DEAN WITTER AMERICAN VALUE FUND BUYS GROWTH COMPANIES NOT VALUE STOCKS THE STRONG FUNDS DON'T NECESSARILY HAVE STRONG RESULTS THEY ARE NAMED AFTER FOUNDER DICK STRONG VANGUARD WINDSOR II ISN'T RUN BY JOHN NEFF THE CELEBRATED MANAGER WHO RUNS VANGUARD WINDSOR FUNDS CAN USE GOVERNMENT IN THEIR NAME EVEN IF THEY HAVE 35 OF THEIR ASSETS INVESTED IN SECURITIES OTHER THAN GOVERNMENT BONDS MANY INVESTORS SHOP FOR BOND FUNDS BASED ON YIELD BUT YIELD IS ONLY ONE COMPONENT OF A FUND'S TOTAL RETURN THE OTHER COMPONENT WHAT HAPPENS TO A FUND'S SHARE PRICE CAN BE EVEN MORE IMPORTANT HIGHYIELD JUNK BOND FUNDS STARTED 1990 WITH AVERAGE YIELDS OF 136 BUT BECAUSE OF FALLING FUND SHARE PRICES THE FUNDS LOST 111 OVER THE NEXT 12 MONTHS IF YOU SEE A FUND WITH A GOOD DIVIDEND YIELD YOU SHOULD CHECK TO SEE WHAT THE TOTAL RETURN HAS BEEN SAYS MR REKENTHALER YIELD IS OPEN TO MANIPULATION IN A WAY THAT TOTAL RETURN ISN'T WHEN A CORPORATION CUTS THE DIVIDEND ON ITS STOCK IT'S USUALLY A SIGN OF TROUBLE THAT ISN'T THE CASE WITH BOND FUNDS IN PERIODS OF FALLING INTEREST RATES A PRUDENT FUND MANAGER MAY CHOOSE TO BUY LOWERYIELDING SECURITIES RATHER THAN RISK A LOSS OF CAPITAL IN AN EFFORT TO MAINTAIN THE FUND'S DIVIDEND RATE CONVERSELY SOME POORLY RUN FUNDS TAKE INORDINATE RISKS IN AN EFFORT TO MAINTAIN A PARTICULAR MONTHLY DIVIDEND THAT HIGH DIVIDEND RATE MAY COME AT THE EXPENSE OF A FALLING FUND SHARE PRICE BOND FUNDS WITH LOW ANNUAL EXPENSES ALMOST ALWAYS DO BETTER THAN HIGHEXPENSE FUNDS FOR PROOF CONSIDER SOME FIGURES CALCULATED BY FUND RESEARCHERS CDA/WIESENBERGER THE ROCKVILLE MD FIRM TOOK THE 108 INTERMEDIATE AND LONGTERM GOVERNMENT BOND FUNDS THAT HAVE BEEN AROUND FOR THE PAST FIVE YEARS AND DIVIDED THEM INTO FOUR EQUALSIZE GROUPS DEPENDING ON THEIR AVERAGE ANNUAL EXPENSES OVER THE PAST FIVE YEARS THE 25 OF FUNDS WITH THE LOWEST AVERAGE EXPENSES WERE THE BEST PERFORMERS RETURNING AN AVERAGE 99 A YEAR OVER THE FIVE YEARS ENDED DECEMBER THE 25 WITH THE HIGHEST EXPENSES HAD THE POOREST PERFORMANCE GAINING AN AVERAGE 87 ANNUALLY MONEY FUNDS SEEK TO MAINTAIN A FIXED 1 SHARE PRICE BUT THAT SHARE PRICE ISN'T GUARANTEED IN RECENT YEARS SOME FUND COMPANIES HAVE HAD TO BUY DEFAULTED COMMERCIAL PAPER FROM THEIR MONEY FUNDS TO MAINTAIN THE 1 SHARE PRICE BUT FUND COMPANIES ARE UNDER NO OBLIGATION TO DO THIS ONE DAY A FUND COMPANY MAY DECIDE IT CAN'T AFFORD TO BAIL OUT ITS MONEY FUND IN ADDITION MONEY FUNDS GENERATE ROTTEN LONGRUN RETURNS AND ARE SUSCEPTIBLE TO SHARP DROPS IN THEIR DIVIDEND PAYOUT IN 1992 FOR INSTANCE YIELDS ON TAXABLE MONEY FUNDS DROPPED TO 28 FROM 45 IF YOU GO TO A BROKER FINANCIAL PLANNER INSURANCE AGENT OR A BANK YOU'RE LIKELY TO END UP BUYING LOAD FUNDS WHICH CHARGE SALES COMMISSIONS OF AS MUCH AS 85 YOU CAN AVOID THOSE SALES CHARGES BY INVESTING IN NOLOAD FUNDS WHICH CAN BE BOUGHT DIRECTLY FROM FUND COMPANIES AND DON'T CHARGE A COMMISSION BUT IF YOU BUY NOLOAD FUNDS YOU HAVE TO BE WILLING TO MAKE YOUR OWN INVESTMENT DECISIONS ACCORDING TO CDA/WIESENBERGER NOLOAD STOCK FUNDS RETURNED AN AVERAGE 143 A YEAR OVER THE FIVE YEARS ENDED DECEMBER WHILE LOAD FUNDS GAINED 144 THESE FIGURES WHICH ARE FOR DIVERSIFIED US STOCK FUNDS DON'T REFLECT THE IMPACT OF SALES CHARGES IF YOU FACTOR IN THE SALES COMMISSION AN INVESTOR IS PROBABLY GOING TO BE BETTER OFF IN A NOLOAD FUND SAYS STEPHEN SAVAGE CDA/WIESENBERGER'S MANAGING EDITOR SOME BROKERSOLD FUNDS DON'T CHARGE AN UPFRONT SALES COMMISSION INSTEAD THEY NICK YOU EVERY YEAR WITH A 12B1 MARKETING AND DISTRIBUTION FEE OR THEY HIT YOU WITH A BACKEND SALES COMMISSION WHEN YOU SELL THAT ONE SHOCKS A LOT OF PEOPLE SAYS MORNINGSTAR'S MR REKENTHALER IT'S THE ROACH MOTEL STYLE OF INVESTING ONCE YOU CHECK IN YOU CAN'T CHECK OUTUNLESS YOU PAY 5 FIDELITY INVESTMENTS AND DREYFUS CORP SELL MOST OF THEIR FUNDS DIRECTLY TO THE PUBLIC NONETHELESS SOME OF THEIR STOCK FUNDS CHARGE SALES COMMISSIONS WITH MOST FIDELITY FUNDS YOU CAN GET AROUND THE SALES CHARGE BY BUYING THE FUND THROUGH A RETIREMENT ACCOUNT FUND COMPANIES SUCH AS JANUS GROUP T ROWE PRICE ASSOCIATES AND TWENTIETH CENTURY INVESTORS WILL WAIVE THEIR INVESTMENT MINIMUMS AND LET YOU OPEN AN ACCOUNT WITH NO MONEY DOWN PROVIDING YOU AGREE TO INVEST 25 OR 50 EVERY MONTH THROUGH AN AUTOMATIC INVESTMENT PLAN WITH THESE PLANS MONEY IS MOVED DIRECTLY FROM YOUR PAYCHECK OR BANK ACCOUNT INTO A MUTUAL FUND INVESTORS CAN ALSO GET INTO FUNDS FOR LESS THAN THE USUAL MINIMUM IF THEY OPEN A RETIREMENT ACCOUNT LIKE A KEOGH PLAN OR INDIVIDUAL RETIREMENT ACCOUNT FOR INSTANCE FIDELITY T ROWE PRICE AND VANGUARD GROUP WHICH REGULARLY DEMAND MINIMUMS OF 2500 OR 3000 WILL LET YOU OPEN AN IRA WITH 500 TAX RULES FOR ACCOUNTING FOR MUTUAL FUND CAPITAL GAINS AND LOSSES CAN BE EXTREMELY CONFUSING ESPECIALLY IF YOU SELL ONLY A PORTION OF YOUR FUND HOLDINGS AS A RESULT FUND INVESTORS INTENT ON SELLING SHOULD TRY TO REDEEM THEIR FUND HOLDINGS ALL AT ONE TIME I DON'T THINK THERE'S ANYBODY ALIVE WHO CAN FIGURE OUT WHAT THE COST BASIS IS WHEN YOU SELL A MUTUAL FUND ESPECIALLY IF YOU'VE BOUGHT AND SOLD THE FUND AT VARIOUS TIMES IN THE PAST SAYS MUTUAL FUND LETTER'S MR PERRITT STOCK FUNDS TYPICALLY MAKE A SINGLE CAPITAL GAINS DISTRIBUTION EACH YEAR USUALLY IN LATE DECEMBER IF YOU BUY A FUND JUST BEFORE THE DISTRIBUTION DATE YOU HAVE TO PAY TAXES ON THE DISTRIBUTION EVEN THOUGH YOU HAVE ONLY JUST BOUGHT THE FUND THERE ARE PEOPLE IN MUNI BOND FUNDS WHO DON'T BELONG THERE SAYS LEWIS ALTFEST PRESIDENT OF LJ ALTFEST & CO A NEW YORK INVESTMENT ADVISER IF YOU'RE IN THE 15 TAX BRACKET AND YOUR STATE TAXES AREN'T VERY HIGH THEN YOU SHOULDN'T BE IN A MUNI BOND FUND DESPITE THE SUPERIOR LONGRUN RETURNS GENERATED BY STOCK FUNDS FUND SHAREHOLDERS ARE MOST HEAVILY INVESTED IN BOND AND MONEYMARKET FUNDS AT YEAR END FOR INSTANCE STOCK FUNDS ACCOUNTED FOR 30 OF THE FUND INDUSTRY'S 16 TRILLION IN ASSETS COMPARED WITH 34 FOR MONEYMARKET FUNDS AND 36 FOR BOND FUNDS THAT'S NOT A GOOD LONGERTERM ASSET ALLOCATION SAYS MR ALTFEST MOST PEOPLE SHOULD HAVE 50 OR MORE OF THEIR MONEY IN STOCK FUNDS EVEN IF THEY'RE AT RETIREMENT STOCK FUND INVESTORS KEEP THE BULK OF THEIR MONEY IN FUNDS THAT OWN US LARGECOMPANY STOCKS ACCORDING TO LIPPER ANALYTICAL MUTUAL FUND INVESTORS HAVE 64 OF THEIR STOCK MARKET MONEY IN SMALLCOMPANY STOCK FUNDS 73 IN SECTOR FUNDS AND 91 IN FOREIGNSTOCK FUNDS A WHOPPING 772 IS IN LARGECOMPANY STOCK FUNDS STOCKFUND INVESTORS SHOULD BE BROADENING INTO THE INTERNATIONAL ARENA SAYS MR ALTFEST THEY SHOULD HAVE A STRONGER REPRESENTATION IN THE SMALLCAP AREA AND THEY SHOULD NOT BE IN SECTOR FUNDS EMERGING MARKETS FUNDS FOREIGNSTOCK FUNDS AND SMALLCOMPANY STOCK FUNDS OFFER THE PROSPECT OF HANDSOME GAINS OVER TIME BUT THESE FUNDS ALSO TEND TO BOUNCE AROUND SHARPLY IN SHARE PRICE BY MIXING TOGETHER THESE AND OTHER STOCK FUNDS HOWEVER YOU CAN MAKE THOSE SHARE PRICE GYRATIONS MORE BEARABLE WHILE STILL GETTING THE HANDSOME LONGTERM GAINS BECAUSE OF THIS PHENOMENON IF YOU'RE A CONSERVATIVE INVESTOR YOU DON'T HAVE TO BUY JUST CONSERVATIVE INVESTMENTS SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER MOST INVESTORS BUY FUNDS ON AN AD HOC BASIS SO THAT THEY END UP WITH A HOST OF DIFFERENT FUNDS MANY OF WHICH USE THE SAME INVESTMENT STYLE THE SOLUTION SAY ANALYSTS IS FIRST TO DECIDE THAT YOU WANT TO OWN SAY A GOVERNMENT BOND FUND AN INTERNATIONALSTOCK FUND AND A LARGECOMPANY STOCK FUND ONCE YOU HAVE SETTLED ON A MIX YOU THEN BUY THE BEST POSSIBLE FUNDS TO BUILD YOUR DESIRED PORTFOLIO IF THE STOCK MARKET SUDDENLY GOES INTO A TAILSPIN DON'T RUSH TO SELL YOUR SHARES EVEN IF YOU IMMEDIATELY PUT IN A SELL ORDER YOUR SHARES WON'T BE SOLD UNTIL THE END OF THE DAY AT WHICH POINT THE SHARE PRICE YOU GET WILL REFLECT THAT DAY'S TRADING ACTIVITY THAT LESSON WAS BROUGHT HOME TO A LOT OF PEOPLE ON OCT 19 1987 NOTES SHELDON JACOBS EDITOR OF THE NOLOAD FUND INVESTOR A HASTINGSONHUDSON NY NEWSLETTER PEOPLE WHO SOLD OUT THAT DAY PRETTY MUCH GOT THE ABSOLUTE BOTTOM 9303050067 930305 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC EC EXPECTED TO ORDER FIRM TO PAY INTEREST ON SUBSIDIES THE EUROPEAN COMMUNITY COMMISSION IS EXPECTED NEXT WEEK TO ORDER BRITISH AEROSPACE PLC TO PAY INTEREST ON STATE SUBSIDIES IT RECEIVED WHEN IT ACQUIRED ROVER GROUP PLC IN 1988 PEOPLE CLOSE TO THE COMMISSION SAID THAT KAREL VAN MIERT THE EC'S COMPETITION COMMISSIONER DECIDED THAT BRITISH AEROSPACE SHOULD PAY THE BRITISH GOVERNMENT 2 1/2 YEARS OF INTEREST AND THE 444 MILLION 644 MILLION IN STATE AID THAT THE COMMISSION HAS RULED WAS GRANTED ILLEGALLY TO THE COMPANY MR VAN MIERT'S PLAN WAS ENDORSED BY SENIOR COMMISSION OFFICIALS YESTERDAY AND IS EXPECTED TO BE ADOPTED WITHOUT DISCUSSION BY THE 17MEMBER COMMISSION AT ITS NEXT REGULAR WEEKLY MEETING THE SOURCES SAID 9303050066 930305 LEISURE & ARTS BOOKSHELF IN SEARCH OF T REX AND OTHER GIANT REPTILES BY LEE LESCAZE WHY DO WE AND OUR CHILDREN LOVE DINOSAURS OTHER REPTILES AREN'T WILDLY POPULAR MONKEYS DRAW BIGGER CROWDS AT THE ZOO KIDS ASK FOR CATS DOGS EVEN GERBILS AHEAD OF LIZARDS WHAT'S MORE AREN'T WE AND GIANT LIZARDS NATURAL ENEMIES IF DINOSAURS HADN'T BEEN EXTINCT WHEN MAN CAME ON THE SCENE CHANCES ARE WE WOULD HAVE WIPED THEM OUT AS RAPIDLY AS OUR DEVELOPMENT OF WEAPONRY PERMITTED THAT IS IF THE DINOSAURS HADN'T STRUCK FIRST PUTTING A QUICK END TO DREAMS OF MAMMALIAN WORLD DOMINANCE EARTH ISN'T BIG ENOUGH FOR BOTH OF US THINK WHAT A BAND OF SAUROPODS AMBLING THROUGH A WHEAT FIELD WOULD DO TO THE CROP A BRACHIOSAURUS COULD BLOCK AN INTERSTATE WHETHER OR NOT THERE WERE SWEET DIAMONDSHAPED SIGNS READING DINO CROSSING A TYRANNOSAURUS REX VISITING ANY METROPOLITAN AREA WOULD PUSH CAR JACKINGS EVEN BOMBINGS OFF THE FRONT PAGES PERHAPS WE LOVE THEM BECAUSE THEY ARE BOTH SCARY AND SAFELY DEAD OR IT MAY BE THAT DINOSAURS ARE LOVABLE SIMPLY BECAUSE THEY ARE BIG WE TREASURE BIG THINGS THE EMPIRE STATE BUILDING CHINA SHAQUILLE O'NEAL MY THREEYEAROLD DAUGHTER ADMIRES THE CHARACTER IN FANTASIA WHOM MOST OF US MIGHT SEE AS THE DEVIL SHE CALLS HIM THE BIG GUY WHATEVER THE REASON DINOSAURS ARE EVERYWHERE ON CEREAL BOXES TSHIRTS TV SHOWS AND NIGHTGOWNS IT ALL SEEMS PART OF A HUMAN NEED TO MAKE THE UGLY INTO THE CUDDLY LOUIS L JACOBS LOVES DINOSAURS AND FOSSILS HIS PASSION FOR PALEONTOLOGY SHINES THROUGH HIS QUEST FOR THE AFRICAN DINOSAURS VILLARD BOOKS 314 PAGES 25 BUT THIS IS AN ODD BOOK POSITIONED AWKWARDLY BETWEEN AUDIENCES IT IS PRIMARILY FOR PALEONTOLOGICAL KNOWNOTHINGS YET HERE AND THERE IT BECOMES DENSE WITH FOSSIL TALK NO DOUBT AS A RESULT OF DR JACOBS'S DESIRE TO ATTRACT SERIOUS DINOSAUR PEOPLE'S ATTENTION TO THE LITTLEKNOWN AND LITTLEFUNDED AFRICAN SITES DR JACOBS HAS SPENT EIGHT YEARS PROMOTING FOSSIL DIGS IN MALAWI AND HE HAS THOUGHT OFTEN ABOUT THE OBVIOUS QUESTION DOES IT BENEFIT A TRAGICALLY POOR AFRICAN NATION TO DEVELOP ITS FOSSIL RESOURCES IS IT LUDICROUS HE ASKS FOR DINOSAUR HUNTS TO BE CONDUCTED WHERE PEOPLE ARE STARVING AND HOPELESS IN THE VILLAGES LUCKY ENOUGH TO BE CLOSE TO MALAWI'S DINOSAUR BEDS DR JACOBS IS THE ONLY EMPLOYER FOR 1 A DAY WORKERS CAN TAKE PART IN THE SUMMERSONLY FOSSILDIGGING MISSIONS WHAT'S MORE DR JACOBS ARRANGED FOR ELIZABETH GOMANI TO STUDY IN THE US TO BECOME MALAWI'S FIRST PALEONTOLOGIST THUS PALEONTOLOGY HAS MADE A LITTLE DENT IN MALAWI'S PLIGHT WHILE DR JACOBS AND HIS TEAM HAVE BEEN REWARDED WITH SOME IMPORTANT FINDS THEY HAVE THE FOSSIL OF A UNIQUE SMALL CROCODILE OVER 15 BACKBONED ANIMALS HAVE BEEN FOUND THE DIGS HAVE YIELDED FIVE DINOSAURS INCLUDING AN UNUSUALLY SMALL SAUROPOD A TYPE OF HERBIVOROUS DINOSAUR WHO WAS PROBABLY ONLY 30 FEET LONG AND 12 TONS ALL OF THIS HELPS TIE TOGETHER THE RECORD OF THE AGE OF REPTILES DURING MUCH OF WHICH AFRICA AND SOUTH AMERICA WERE JOINED DR JACOBS WHO TEACHES AT SOUTHERN METHODIST UNIVERSITY IN DALLAS WHERE HE IS ALSO DIRECTOR OF THE SHULER MUSEUM OF PALEONTOLOGY POINTS OUT THAT ALTHOUGH DINOSAURS BECAME EXTINCT THEY HAD A VERY LONG RUN GIANT REPTILES DOMINATED EARTH FOR 154 MILLION YEARS THEN CAME THE GREAT DYING PROBABLY CAUSED BY A LARGE METEOR WHICH ON IMPACT THREW SO MUCH DUST INTO THE ATMOSPHERE THAT IT CHANGED EARTH'S CLIMATE AFTER THE GREAT DYING CAME THE AGE OF MAMMALS WHICH IS ABOUT 66 MILLION YEARS OLD AND COUNTING ONE UNHAPPY ASPECT OF QUEST FOR THE AFRICAN DINOSAURS IS THAT DR JACOBS LIKE SO MANY SCHOLARS IN SO MANY FIELDS HEAPS PRAISE UPON THE TERRIBLE REGIME THAT GOVERNS MALAWI PRESUMABLY TO MAINTAIN HIS ACCESS TO THE FOSSIL SITES HASTINGS K BANDA MALAWI'S TYRANT AND PRESIDENT FOR LIFE IS PORTRAYED WARMLY PERHAPS DR JACOBS IS JUST ACTING BY PROFESSIONAL REFLEX MAKING THE UGLY CUDDLY MORE HAPPILY THE BOOK PROVIDES SEVERAL ODD BUT INTERESTING BITS OF INFORMATION FOR EXAMPLE THERE IS A SIMPLE TASTE TEST FOR ANY BRAVE AND EAGER FOSSIL FINDER A MODERN BONE WON'T STICK TO THE TONGUE A FOSSIL WILL DR JACOBS ALSO WAXES ENTHUSIASTIC ABOUT HIS FIRST SPECIALTY RAT TEETH IT IS HARD NOT TO LIKE A MAN WHO FINDS FOSSIL RAT TEETH VERY VERY INTERESTING OF COURSE RAT TEETH ARE POSITIVELY APPETIZING COMPARED WITH THE HAGFISH OR SLIME HAG THIS JAWLESS CREATURE CAN SECRETE ENOUGH SLIME TO COVER ITSELF AND REPEL A PREDATOR DR JACOBS NOTES THAT MANY OF US MAY BE CARRYING A SLIME HAG IN OUR POCKETS THEIR SKIN IS MADE INTO SOCALLED EELSKIN WALLETS MARY ANN ZAPALAC HAS GREATLY INCREASED THE CHARM OF QUEST FOR THE AFRICAN DINOSAURS WITH HER ILLUSTRATIONS ALTHOUGH SHE IS CREDITED ONLY IN THE SMALLEST TYPE HER COLOR COVER AND HER MANY BLACKANDWHITE ILLUSTRATIONS ARE ONE OF THE BEST REASONS FOR BUYING THE BOOK 9303050065 930305 CORPORATE FOCUS ICI CHANGES TACK AND SPLITS ITSELF INTO TWO BUSINESSES DIVERSIFIED COMPANY HOPES SPINOFF WILL SPEED ITS REACTION TO MARKETPLACE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC HAS FOLLOWED A DIVERSIFIED BUSINESS STRATEGY IN RECENT YEARS SIMILAR TO AMERICAN CHEMICAL GIANTS DU PONT CO DOW CHEMICAL CO AND MONSANTO CO THAT APPROACH ICI NOW CONTENDS WAS A MISTAKE SO TO RIGHT ITS STRATEGIC WRONG ICI IS SPLITTING ITSELF INTO TWO COMPANIES ONE RETAINING THE ICI NAME AND ABOUT 12 BILLION IN ANNUAL SALES IS MADE UP OF INDUSTRIAL CHEMICALS PAINTS AND EXPLOSIVES THE OTHER NAMED ZENECA GROUP PLC HAS SALES OF 6 BILLION FROM DRUGS PESTICIDES SEEDS AND SPECIALTY CHEMICALS THE SPLIT IN WHICH SHAREHOLDERS WILL GET ONE SHARE OF ZENECA FOR EACH ICI SHARE IS EXPECTED TO WIN SHAREHOLDER APPROVAL IN LATE MAY ICI BELIEVES THE TWO COMPANIES WILL THRIVE MORE ON THEIR OWN SLOWER PROJECTED GROWTH RATES IN MOST DEVELOPED COUNTRIES AND MOUNTING COMPETITION PUT A PREMIUM ON A COMPANY'S ABILITY TO REACT QUICKLY TO CHANGING MARKET CONDITIONS ICI SAYS THE ABILITY OF A LARGE DIVERSIFIED CHEMICAL COMPANY TO BE QUICK ON ITS FEET IS MUCH MORE DIFFICULT TODAY THAN IT WAS EVEN 10 YEARS AGO SAYS RONNIE HEMPEL ICI CHIEF EXECUTIVE OFFICER BESIDES THE COMPANY ADDS IT BECAME OBVIOUS IN RECENT YEARS THAT THE TWO BUSINESS GROUPS DIDN'T HAVE MUCH IN COMMON OUR CORPORATE STRUCTURE WAS AN INCREASINGLY THIN BAR CONNECTING TWO DUMBBELLS ADDS DAVID BARNES CHIEF EXECUTIVE OF ZENECA THE TWO COMPANIES WILL HAVE SEPARATE BOARDS BUT SIR DENYS HENDERSON ICI CHAIRMAN WILL ALSO BE CHAIRMAN OF ZENECA IF ICI'S DIVIDEANDCONQUER STRATEGY WORKS US CHEMICAL PRODUCERS ARE LIKELY TO FACE INCREASING PRESSURE TO DIVEST OR AT LEAST RADICALLY RESTRUCTURE MAJOR BUSINESSES MOST HAVE TOLERATED EARNINGS GROWTH RATES THAT HAVEN'T EVEN MET THEIR INTERNAL TARGETS FOR THE PAST SEVERAL YEARS THEY CONTINUE TO EXPECT THAT PROFITS AND OTHER CORPORATE RESULTS WILL BENEFIT FROM THE SYNERGY OF THE DIVERSE OPERATIONS MONSANTO FOR INSTANCE HAS BEEN SAYING SINCE THE MID1980S THAT ITS GOAL IS A 20 ANNUAL RETURN ON EQUITY TROUBLE IS THE DATE BY WHICH THE ST LOUIS COMPANY SAYS IT MAY REACH THAT GOAL KEEPS RECEDING INTO THE INDEFINITE FUTURE LAST YEAR ITS ROE EXCLUDING RESTRUCTURING AND OTHER CHARGES WAS CLOSER TO 10 THE ICI BREAKUP IS THE WAVE OF THE FUTURE FOR THE CHEMICAL INDUSTRY ASSERTS ROBERT REITZES A CHEMICAL INDUSTRY ANALYST WITH CJ LAWRENCE CO IN NEW YORK INVESTORS IN BRITAIN AND THE US WHERE ICI TRADES ON THE NEW YORK STOCK EXCHANGE IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS HAVE SIGNALED THEIR SUPPORT FOR THE BREAKUP ON WEDNESDAY THE DAY AFTER MR HEMPEL AND MR BARNES MET WITH US SECURITIES ANALYSTS IN NEW YORK ICI'S ADRS JUMPED 275 TO 73375 IN ACTIVE TRADING YESTERDAY THE ADRS CLOSED UP 375 CENTS AT 7375 ON THE BIG BOARD THE ADRS EACH OF WHICH EQUALS FOUR ICI SHARES HAVE GAINED ABOUT 12 SO FAR THIS YEAR ICI PLANS A 13 BILLION 186 BILLION RIGHTS OFFERING IN JUNE TO COINCIDE WITH THE BREAKUP THE OFFERING PROCEEDS WILL ALLOW ZENECA TO ERASE MOST OF THE 17 BILLION 245 BILLION DEBT IT WILL INHERIT FROM ICI WHEN IT BECOMES INDEPENDENT ICI SAYS IT HAS BEEN WEIGHING BREAKING UP THE COMPANY WHICH WAS FORMED IN 1926 BY A GROUP OF BRITISH COMPANIES TRYING TO THWART FOREIGN COMPETITION FOR THE PAST FEW YEARS ICI HAS BEEN AS SUCCESSFUL AS ANY OTHER CHEMICAL COMPANY IN BUILDING A DIVERSE PORTFOLIO OF BUSINESSES SINCE WORLD WAR II SAYS MR HEMPEL WHO WAS CHIEF OPERATING OFFICER BEFORE BEING NAMED CEO OF THE POSTSPLIT ICI BUT HE SAYS THAT AS MORE COMPETITORS EMERGED AROUND THE WORLD OVER THE PAST 20 YEARS THERE HAS BEEN A GRADUAL DECLINE IN THE PERFORMANCE OF THE CHEMICAL INDUSTRY IN TERMS OF RETURN ON INVESTMENT ICI DIDN'T HELP ITS FINANCIAL HEALTH WHEN IT WENT ON A GLOBAL EXPANSION BINGE IN THE 1980S ADDING THOUSANDS OF EMPLOYEES IN SALES OFFICES AROUND THE WORLD WE SPREAD OUR JAM A BIT THIN MR HEMPEL CONCEDES AFTER THE 1980S GLOBAL GROWTH SPURT ICI WAS TOO UNWIELDY IN SIZE ADDS MR BARNES THE COMPANY WASN'T ABLE TO GIVE THE AMOUNT OF MANAGEMENT ATTENTION AND RESOURCES NEEDED TO THE COMPANY'S RAPIDLY GROWING BUSINESSES ESPECIALLY PHARMACEUTICALS HE SAYS OUR GOOD BUSINESSES WEREN'T BIG ENOUGH AND THEIR RESULTS WERE ALLOWING US TO HUSBAND UNDERPERFORMING BUSINESSES HE SAYS ICI THEN WENT ON A COSTCUTTING BINGE WHICH GAINED MOMENTUM AS BRITAIN'S RECESSION WORSENED OVER THE PAST TWO YEARS A RESTRUCTURING BEGUN IN LATE 1990 HAS REDUCED ICI'S PAYROLL BY ABOUT 21000 TO ROUGHLY 114000 EMPLOYEES ANOTHER 9000 LAYOFFS 7000 FROM ICI AND 2000 FROM ZENECA WILL OCCUR BY 1995 AN ADDITIONAL 6000 ICI EMPLOYEES WILL GO TO WORK FOR DU PONT LATER THIS YEAR WHEN ICI PENDING FEDERAL TRADE COMMISSION APPROVAL SWAPS ITS NYLON BUSINESS FOR DU PONT'S ACRYLICS BUSINESS ICI WILL PICK UP 400 EMPLOYEES FROM DU PONT SEVERAL US CHEMICAL COMPANIES INCLUDING DU PONT MONSANTO AND DOW ALSO HAVE LAUNCHED SWEEPING COSTCUTTING DRIVES OVER THE PAST TWO YEARS TO COPE WITH SLOWING ECONOMIC GROWTH IN MOST DEVELOPED COUNTRIES AND AN OVERSUPPLY OF MANY COMMODITY CHEMICALS AND PLASTICS BUT ICI CONCLUDED THAT CHOPPING HEADS DIDN'T GET TO THE ROOT OF A DIVERSIFIED CHEMICAL COMPANY'S PROBLEMS THE EXECUTIVES SAY WITH MANAGEMENT STILL JUGGLING SO MANY DIFFERENT BUSINESSES OUR ABILITY TO PREDICT WHERE WE WERE GOING TO BE IN THE MARKETPLACE WAS VERY DIFFICULT AND ICI'S DIVERSIFIED RIVALS WEREN'T DOING ANY BETTER MR HEMPEL SAYS THAT RAISES THE QUESTION IN A MANAGER'S MIND ARE YOU SURE YOU'RE DOING IT RIGHT HE ADDS THE COMPANY CONCLUDED IT WASN'T AND STARTED TO STUDY SPINNING OFF THE ZENECA BUSINESSES WHEN OUT FROM UNDER ICI ZENECA OFFICIALS HOPE THAT INVESTORS WILL RECOGNIZE THE RAPID SALES GROWTHFROM 30 TO 60 A YEAROF A HANDFUL OF RECENTLY LAUNCHED DRUGS THOSES SALES WILL HELP OFFSET THE NEARLY 50 DECLINE IN US SALES OF ITS TENORMIN HEART DRUG LAST YEAR CHIEFLY REFLECTING GENERIC COMPETITION AS THE DRUG LOST PATENT PROTECTION THE STOCK MARKET MR BARNES SAYS ALSO DOESN'T FULLY APPRECIATE THE POTENTIAL OF THE 21 DRUGS IN THE COMPANY'S NEW PRODUCT PIPELINE INCLUDING SIX CANCER TREATMENT DRUGS LIKELY TO REACH THE MARKET BEGINNING IN THE LATE 1990S MR BARNES SAYS HE ALSO DOESN'T BELIEVE THE CLINTON ADMINISTRATION'S CAMPAIGN AGAINST HIGH DRUG COSTS WILL HURT ZENECA'S PROSPECTS ON THE ICI CHEMICAL SIDE THE COMPANY IS STILL TOO BROADLY FOCUSED MR HEMPEL SAYS ICI IS LIKELY TO SWAP OR CREATE A JOINT VENTURE FOR A NUMBER OF ITS 12 MAJOR BUSINESSES IN COMING YEARS WHERE PROFITS ARE SO SLIM THEY DON'T WARRANT FURTHER INVESTMENT AS ICI CHAIRMAN SIR DENYS SAYS THERE IS NO EASY ANSWER FOR THE EUROPEAN CHEMICL INDUSTRY THERE ARE JUST TOO MANY PRODUCERS ICI OF COURSE DIDN'T INVENT CORPORATE SPINOFFS AMONG US CHEMICAL PRODUCERS UNION CARBIDE CORP AND AMERICAN CYANAMID CO HAVE ALREADY SPUN OFF OR ARE IN THE PROCESS OF DIVESTING THEMSELVES OF MAJOR BUSINESSES THESE COMPANIES TEND TO BE VIEWED AS SPECIAL CASES IN THE CHEMICAL INDUSTRY HAVING RATIONALES FOR THEIR SPECIFIC STRATEGIC PLANS THAT DON'T DIRECTLY APPLY TO OTHER DIVERSIFIED CHEMICAL MAKERS ICI WHILE NOT A CARBON COPY OF ITS US RIVALS IS HARDER FOR OTHER DIVERSIFIED US CHEMICAL COMPANIES AND THEIR SHAREHOLDERS TO IGNORE ASKED WHETHER AMERICA'S BIG THREE CHEMICAL COMPANIES DOW DU PONT AND MONSANTO SHOULD STICK WITH THEIR BROAD DIVERSIFICATION PLANS GIVEN THE BLEAK PROSPECTS FOR GLOBAL GROWTH IN THE 1990S MR HEMPEL SMILES BROADLY WHETHER THE OTHERS FOLLOW US IS UP TO THEM HE SAYS 9303050064 930305 INTERNATIONAL BRIEF LADBROKE GROUP PLC PROFIT PLUNGED 81 IN 1992 DUE TO LARGE WRITEDOWN LADBROKE GROUP PLC THE BRITISH LEISURE GROUP THAT OWNS HILTON HOTELS OUTSIDE THE US SAID PRETAX PROFIT PLUNGED 81 IN 1992 TO 401 MILLION 581 MILLION BECAUSE OF A 1467 MILLION WRITEDOWN ON ITS PROPERTY PORTFOLIO LADBROKE HELD ITS DIVIDEND AT 1115 PENCE A SHARE BUT NOTED THAT IT REPRESENTED A SLIGHT RISE WHEN TAKING INTO ACCOUNT A RECENT SHARE ISSUE SALES ROSE 10 TO 417 BILLION CHAIRMAN CYRIL STEIN SAID THAT ALTHOUGH LADBROKE DECIDED TO WRITE DOWN ITS PROPERTY PORTFOLIO THE DIVISION WAS GENERATING CASH FOR THE COMPANY PROFITS FROM HILTON INTERNATIONAL AND FROM LADBROKE'S UK CHAINS OF BETTING PARLORS AND HOMEIMPROVEMENT STORES WERE DOWN EXCLUDING THE IMPACT OF THE PROPERTY PROVISION LADBROKE'S OPERATING PROFITS OF 1868 MILLION WERE DOWN 6 FROM 1991 AND IN LINE WITH MARKET EXPECTATIONS A BREAKDOWN OF THE PROFITS FOR THE COMPANY'S FOUR MAIN OPERATIONS SHOWED DECLINES IN ALL AREAS EXCEPT RACING WHERE A TINY RISE WAS RECORDED 9303050063 930305 DESPITE HEAVY LOSSES AIRLINES RESIST FARE INCREASES AND EXTEND PROMOTIONS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL THE AIRLINE INDUSTRY SEEKING TO REVERSE ITS HUGE LOSSES WOULD LIKE TO RAISE FARES AND CUT BACK EXTENDED SALES BUT IF THIS WEEK IS ANY INDICATION ACCOMPLISHING EITHER WILL BE DIFFICULT YESTERDAY NORTHWEST AIRLINES BACKED DOWN FROM A 5 FARE INCREASE BECAUSE RIVALS DECLINED TO MATCH IT MEANWHILE MOST MAJOR AIRLINES EXTENDED UNTIL MONDAY A FARE SALE THAT CUTS PRICES FOR LEISURE TRAVEL BY AS MUCH AS 40 THE WEEK'S EVENTS ALSO UNDERSCORED A NEW PROBLEM FOR THE AIRLINES MOST CARRIERS ARE ABIDING BY A US JUSTICE DEPARTMENT CONSENT DECREE RELATED TO ALLEGATIONS OF PRICE FIXING ADHERING TO THAT DECREE MAY COMPLICATE THEIR ABILITY TO RAISE FARES PREVIOUSLY AIRLINES COULD ELECTRONICALLY SIGNAL AN IMPENDING FARE INCREASE IN THE COMPUTER RESERVATION SYSTEM AND OTHER CARRIERS COULD SIGNAL BACK WHETHER THEY WOULD MATCH IT THE CONSENT DECREE PROHIBITS THAT TYPE OF ELECTRONIC DIALOGUE SO AIRLINES MAY BE LESS LIKELY TO RAISE FARES UNILATERALLY AND RISK LOSING CUSTOMERS IF RIVALS DON'T MATCH NORTHWEST A UNIT OF WINGS HOLDINGS INC DISCOVERED THAT RISK THIS WEEK IT INTRODUCED ITS 5 FARE INCREASE ON SATURDAY WHEN FEW TRAVELERS BUY TICKETS COMPETITORS DIDN'T FOLLOW BUT THE DAMAGE WAS MINIMIZED BECAUSE NORTHWEST SIMULTANEOUSLY INTRODUCED A FARE CUT FOR LEISURE TRAVELERS IN EFFECT WIPING OUT THE 5 RISE FOR MANY CONSUMERS NORTHWEST WITHDREW THE 5 INCREASE YESTERDAY WHEN RIVALS DIDN'T MATCH IT IT WILL BE VERY DIFFICULT FOR AIRLINES TO RAISE FARES BECAUSE THEY CAN'T BE EXPOSED WITH HIGHER TICKET PRICES SAYS TOM PARSONS EDITOR OF BEST FARES A TEXAS TRADE PUBLICATION TO THE INDUSTRY'S DISMAY NORTHWEST'S INITIATIVE SET OFF A MUCH WIDER FARE WAR THAN THE AIRLINE EXPECTED THE PROMOTIONAL FARE WHICH APPLIES TO TICKETS PURCHASED 14 DAYS IN ADVANCE FOR TRIPS COMPLETED BY JUNE 30 WAS TO EXPIRE ON WEDNESDAY BUT ON TUESDAY USAIR WHICH HAD MATCHED NORTHWEST'S CUT MOVED ITS PURCHASE DEADLINE TO NEXT MONDAY EXTENDING THE SALE BY FIVE DAYS MATCHING USAIR'S EXTENSION YESTERDAY WERE AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES DELTA AIR LINES CONTINENTAL AIRLINES WHICH IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC AND NORTHWEST WHILE SHORT SALES STIMULATE QUICK DEMAND AND BRING IN QUICK CASH LONGER SALES ARE USUALLY LESS PROFITABLE DEMAND FOR CHEAP FARES EVENTUALLY FALLS OFF AND PASSENGERS WHO WOULD HAVE PAID FOR HIGHERPRICED TICKETS FLY ON THE CHEAP BUT COMPETITORS FEARING THE LOSS OF CUSTOMERS INVARIABLY MATCH THE LOWEST FARE IN ADDITION MANY AIRLINES ARE TRYING TO AVOID SALES BECAUSE THEY CONDITION CONSUMERS TO WAIT FOR PROMOTIONS BEFORE BUYING TICKETS BY CONTINUOUSLY EXTENDING SALES DEADLINES YOU CREATE THE IMPRESSION THAT THERE WILL ALWAYS BE A SALE AN AMERICAN AIRLINES SPOKESMAN SAYS WE'VE DISTORTED CUSTOMERS' PERCEPTION OVER WHAT A BASIC EXCURSION FARE REALLY IS USAIR A UNIT OF USAIR GROUP INC BLAMES NORTHWEST FOR THE FARE WAR AND SAYS IT JUST WANTED TO GIVE CUSTOMERS A FEW MORE DAYS TO TAKE ADVANTAGE OF THE PROMOTION 9303050062 930305 MCCAW CELLULAR'S REDEMPTION KIRKLAND WASH MCCAW CELLULAR COMMUNICATIONS INC SAID IT PLANS TO REDEEM ITS 114 MILLION OF 8 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE JUNE 15 2008 AND ITS 285 MILLION OF 115 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE THE SAME DATE THE COMPANY SAID IT WILL REDEEM THE 8 ISSUE AT 1048 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE DEBENTURES' CURRENT CONVERSION PRICE IS 2975 PER SHARE OF COMMON STOCK THE 115 ISSUE WILL BE REDEEMED AT 100 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE DEBENTURES' CURRENT CONVERSION RATE IS 2325 SHARES OF COMMON STOCK PER 1000 PRINCIPAL AMOUNT THE RIGHT OF THE NOTE HOLDERS TO CONVERT ENDS AT THE CLOSE OF BUSINESS MARCH 31 THE CELLULARSERVICE CONCERN SAID MCCAW'S STOCK CLOSED UP 25 CENTS A SHARE AT 3650 A SHARE YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING 9303050061 930305 MARKETING BRIEF NOTED VEGETABLE MELEE THE US CUSTOMS SERVICE IS ASKING GREEN GIANT TO MAKE THE WORDS PRODUCT OF MEXICO MORE CONSPICUOUS ON PACKAGES OF ITS AMERICAN MIXTURES BRAND OF FROZEN VEGETABLES THE REASON GREEN GIANT IS GETTING BUSTED IS THAT GREEN GIANT IS WHISPERING MEXICO' AND SHOUTING AMERICAN' SAID JOE FAHEY PRESIDENT OF TEAMSTERS LOCAL 912 IN WATSONVILLE CALIF WHOSE UNION LOST 382 JOBS IN 1990 WHEN THE GRAND METROPOLITAN PLC UNIT SHIFTED MUCH OF ITS CAULIFLOWER AND BROCCOLI OPERATIONS TO MEXICO GREEN GIANT SPOKESMAN TERRY THOMPSON SAID WE CONTINUE TO BELIEVE WE ARE IN COMPLIANCE WITH ALL FEDERAL REGULATIONS 9303050060 930305 CHIQUITA POSTS 4THPERIOD LOSS MAY SELL UNIT BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI CHIQUITA BRANDS INTERNATIONAL INC CITING HIGHER BANANA COSTS AND PROBLEMS AT ITS MEAT UNIT POSTED A FOURTHQUARTER LOSS OF 1934 MILLION OR 377 A SHARE AFTER A BIG RESTRUCTURING CHARGE THE COMPANY ALSO SAID IT WILL SELL ITS MEAT UNIT WHICH HAS BEEN HURT BY TOUGH COMPETITION AND LOWER MARGINS THE DISCONTINUED MEAT OPERATION POSTED A LOSS OF 41 MILLION OR 80 CENTS A SHARE IN THE FOURTH QUARTER THE UNIT HAS ANNUAL SALES OF ABOUT 2 BILLION THE RESTRUCTURING CHARGE OF 613 MILLION OR 120 A SHARE STEMS FROM COSTCUTTING ACTIONS CHIQUITA TOOK IN THE FOURTH QUARTER INCLUDING CONSOLIDATING OPERATIONS SELLING ASSETS AND CUTTING JOBS THERE HAS BEEN A WORKFORCE REDUCTION BOTH IN PRODUCTION FACILITIES AND SOME OF OUR MARKETS A SPOKESMAN SAID SALES FOR THE QUARTER WERE 621 MILLION IN THE 1991 FOURTH QUARTER CHIQUITA HAD NET INCOME OF 93 MILLION OR 18 CENTS A SHARE ON SALES OF 647 MILLION CHIQUITA MADE THE ANNOUNCEMENT AFTER THE CLOSE OF TRADING IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CHIQUITA FELL 125 CENTS TO 14625 THE COMPANY IS CONTROLLED BY FINANCIER CARL H LINDNER AND HIS FAMILY ITS EQUITY IS 47 OWNED BY AMERICAN FINANCIAL CORP THE LINDNER FAMILY'S CLOSELY HELD HOLDING COMPANY IN CINCINNATI FOR 1992 CHIQUITA POSTED A LOSS OF 284 MILLION OR 548 A SHARE ON SALES OF 272 BILLION THAT COMPARES WITH YEAREARLIER NET OF 1285 MILLION OR 252 A SHARE ON SALES OF 26 BILLION THE LOSS ON THE DISCONTINUED MEAT UNIT WAS 623 MILLION OR 120 A SHARE WHILE THE RESTRUCTURING CHARGE WAS 61 MILLION OR 118 A SHARE FOR THE YEAR CHIQUITA WHICH OWNS JOHN MORRELL PROCESSED MEATS AND FRESH PORK AMONG OTHER BRANDS SAID IT IS PUTTING ITS ENTIRE MEAT BUSINESS UP FOR SALE THE COMPANY EXPECTS TO SELL THE UNIT IN PIECES AND IS CONSIDERING A MANAGEMENT BUYOUT OF ONE SEGMENT SOME FOODINDUSTRY ANALYSTS HAVE LONG SPECULATED THAT CHIQUITA MIGHT SELL SOME OF ITS SPECIALTY MEAT BRANDS BUT DOUBT IT CAN FIND A BUYER FOR ITS TWO FRESH PORK PLANTS CHIQUITA HOWEVER BELIEVES IT WILL ULTIMATELY SELL THE UNIT IN 1992 BANANA PROFIT WAS HURT BY SHARP INCREASES IN EXPENSES AND BAD WEATHER AND DISEASE WHICH HURT PRODUCTIVITY AND CULTIVATION MANY OF THE COSTS WERE UNRECOVERED THE BANANA UNIT'S 1991 SALES WERE 18 BILLION ACCORDING TO ANALYSTS IN THE FOURTH QUARTER CHIQUITA'S LOSS FROM CONTINUING OPERATIONS BEFORE CHARGES WAS 96 MILLION OR 177 A SHARE COMPARED WITH NET OF 85 MILLION OR 11 CENTS A SHARE IN THE YEAREARLIER PERIOD FOR THE YEAR THE LOSS FROM CONTINUING OPERATIONS BEFORE CHARGES WAS 146 MILLION OR 291 A SHARE COMPARED WITH YEARBEFORE NET OF 160 MILLION OR 219 A SHARE CHIQUITA PRESIDENT KEITH E LINDNER A SON OF CHIQUITA CHAIRMAN CARL H LINDNER SAID THE COMPANY WILL CONTINUE TO REDUCE EXPENSES IN 1993 HE ADDED THAT CHIQUITA'S BANANA UNIT HAS EXPERIENCED NORMAL COSTS AND PRICING IN THE FIRST TWO MONTHS OF THE YEAR HE SAID HE IS UNCERTAIN ABOUT THE EFFECT ON CHIQUITA OF POTENTIAL EUROPEAN COMMUNITY LEGISLATION GOVERNING THE BANANA INDUSTRY 9303050059 930305 MARKETING & MEDIA ADVERTISING STEINBRENNER BOWS OUT OF ADS IN FAVOR OF YANKEE SUPERSTARS BY KEVIN GOLDMAN WHEN LANDIS & DYGUS A SMALL ADVERTISING AGENCY IN DEER PARK NY WON THE NEW YORK YANKEES ACCOUNT IT THOUGHT THE CAMPAIGN STRATEGY WAS A NOBRAINER IT WOULD BLITZ NEWSPAPERS BILLBOARDS RADIO AND TELEVISION EVEN BUMPER STICKERS WITH THE MUG FAMILIAR TO NEW YORKERS AND THE NATION ALIKE GEORGE STEINBRENNER THE BOSS OF SUMMER WHO HAS JUST RETRNED TO THE FRONT OFFICE AS THE PRINCIPAL OWNER OF THE NEW YORK YANKEES AFTER A 2 1/2YEAR SUSPENSION FROM BASEBALL SURE ENOUGH MR STEINBRENNER HAS APPEARED IN A NEW ROUND OF PRINT ADS ALONG WITH 11 YANKEE PLAYERS STANDING FRONT AND CENTER IN A ROW ALL BY HIMSELF THE CAPTION IT'S WHERE THE ACTION'S GONNA BE HE IS THE CENTERPIECE OF A RADIO CAMPAIGN FEATURING MANONTHESTREET INTERVIEWS WITH NEW YORKERS WHO GIVE PITHY TAKES ON THE INFAMOUS YANKEE OWNER NO ONE'S PERFECT IT'S BEEN DULLSVILLE AROUND HERE YOU'VE GOTTA BE KIDDING THE TAG LINE IS ONE OF MR STEINBRENNER'S FAVORITES LET'S GET READY TO RUMBLE THE '93 YANKEES AND BOSS STEINBRENNER HOW ELSE LANDIS & DYGUS FIGURES TO BETTER SELL SEATS TO THE HOUSE THAT RUTH BUILT THAN TO PUT MR STEINBRENNER'S FACE ALL OVER GOTHAM OUR RECOMMENDATION IS TO KEEP USING HIM HE IS THE YANKEES SAYS WALLY DYGUS PRESIDENT OF THE SMALL SHOP NEVER MIND THAT MR STEINBRENNER'S LONG SUSPENSION FROM THE SPOTLIGHT STEMMED FROM CHARGES THAT HE MADE SECRET PAYMENTS TO A SELFCONFESSED GAMBLER FOR DAMAGING INFORMATION ON A STAR PLAYER OR THAT THE NEW YORK PRESS OFTEN REVILES HIM AND THAT HE HAS BEEN CRITICIZED FOR FIRING A REVOLVINGDOOR STREAM OF MANAGERS BULLYING MILLIONAIRE SUPERSTARS AND OTHER IMPOLITE DEEDS INDEED WITH SPRING TRAINING AND MR STEINBRENNER'S RETURN BOTH LESS THAN A WEEK OLD THE BOSS MAN HIMSELF IS HAVING DOUBTS ABOUT JUST HOW PROMINENT HIS ROLE SHOULD BE IN YANKEES AD HYPE PERHAPS UNCHARACTERISTICALLY FOR THE LONGTIME MEDIA HOUND HE WANTS TO PLAY IT SAFE AND DUCK OUT OF FUTURE ADVERTISING MUCH TO THE DISAPPOINTMENT OF THE AD EXECUTIVES HE HAS HIRED OTHER ORGANIZATIONS SOMETIMES MUST FIGURE OUT HOW AND WHETHER TO USE THEIR INFAMOUS LEADERS IN ADVERTISING DONALD TRUMP HAS JUST REEMERGED IN TV ADS FOR TRUMP'S CASTLE CASINO RESORT IN ATLANTIC CITY AFTER A LONG ABSENCE FROM THE AIRWAVES AS HE FLIRTED WITH FINANCIAL COLLAPSE ORIGINALLY WE HAD SOME CONCERNS CONCEDES DAVID SUISSA CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR OF SUISSA MILLER ADVERTISING THE SANTA MONICABASED AGENCY THAT HANDLES TRUMP'S CASTLE YOU KNOW DONALD IS A VERY SERIOUS FELLOW BUT SERIOUS ADVERTISING FOR CASINOS IS DEATH SO WE HAD TO LOOSEN HIM UP THE AGENCY HAD LITTLE CHOICE HOWEVER OVER WHETHER TO INCLUDE MR TRUMP HE WANTED TO BE IN THE ADS SAYS MR SUISSA IT'S WORKED OUT MR SUISSA REPORTS HE'S LOOSENED UP STEPHEN A GREYSER PROFESSOR OF CONSUMER MARKETING AT HARVARD BUSINESS SCHOOL SAYS IT DOESN'T MATTER THAT MR TRUMP IS BOTH LIKED AND DISLIKED BY NEW YORKERS WHAT ARE YOUR ALTERNATIVES IF AN AD AGENCY DOESN'T USE THE OWNER AS A SYMBOL FOR THE ORGANIZATION WHAT DOES IT USE THERE IS LITTLE CHOICE BUT IT'S DIFFERENT WHEN IT COMES TO A BASEBALL TEAM SAYS MR GREYSER NO OWNER NOT EVEN MR STEINBRENNER SELLS SEASON TICKETS THE PLAYERS DO OCCASIONALLY THE MANAGER CAN BE THE DRAWING CARD SUCH AS WHEN BILLY MARTIN MANAGED THE OAKLAND ATHLETICS IN THE EARLY 1980S AND THE SPORT PLAYED BY THEM WAS DUBBED BILLY BALL AND WHEN AN OWNER MAKES NEWS IT USUALLY ISN'T WELCOME CINCINNATI REDS OWNER MARGE SCHOTT FOR EXAMPLE WAS RECENTLY SUSPENDED FOR ALLEGEDLY MAKING RACIALLY INSENSITIVE REMARKS MS SCHOTT USED TO APPEAR IN ADS WITH FORMER REDS STAR PETE ROSE ACCORDING TO CHIP BAKER WHO HANDLES MARKETING FOR THE TEAM HE SAYS MS SCHOTT NEVER WARMED UP TO APPEARING IN ADS AFTER MR ROSE'S DEPARTURE SO NOW THAT MR STEINBRENNER HAS ORDERED HIMSELF REMOVED FROM ADS AT LEAST FOR THE TIME BEING WHAT IS THE ALTERNATIVE STRATEGY HIS SPOKESMAN HOWARD RUBENSTEIN SAYS THE ADS WILL CONCENTRATE ON THE PLAYERS SUCH AS OUTFIELDER DANNY TARTABULL FIRST BASEMAN DON MATTINGLY AND THIRD BASEMAN WADE BOGGS THE YANKEE MANAGER BUCK SHOWALTER WILL ALSO APPEAR IN THE CAMPAIGN ACCORDING TO MR RUBENSTEIN THE YANKEE OWNER SAID IT WAS ENOUGH ALREADY YOU HAVE TO SELL THE TEAM IT'S IMPOSSIBLE TO KNOW OF COURSE WHETHER MR STEINBRENNER HAS GROWN HUMBLE DURING HIS 30MONTH SUSPENSION OR WHETHER HE SENSES CRITICISM FROM THE UNFORGIVING NEW YORK MEDIA INCLUDING NEWSPAPER COLUMNISTS THAT HE IS ONCE AGAIN HOGGING THE SPOTLIGHT THE TIME GEORGE STEINBRENNER SHOULD START APPEARING IN ADVERTISEMENTS FOR THE NEW YORK YANKEES SAYS MR GREYSER OF HARVARD IS WHEN HE SUITS UP IN A YANKEES UNIFORM AND TAKES THE FIELD EVERYDAY ORION PICTURES CORP WHICH RECENTLY EMERGED FROM FEDERAL BANKRUPTCYCOURT PROCEEDINGS IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS SELECTED WPP GROUP'S J WALTER THOMPSON FOR ITS ESTIMATED 35 MILLION ACCOUNT INDUSTRY EXECUTIVES SAID THE AGENCY'S LOS ANGELESBASED OFFICE WHICH HAS BEEN SCALED BACK IN RECENT YEARS WILL HANDLE THE ACCOUNT ORION COULDN'T BE REACHED FOR COMMENT AND J WALTER THOMPSON EXECUTIVES DECLINED COMMENT OMNICOM GROUP'S DDB NEEDHAM UNEXPECTEDLY WITHDREW FROM THE REVIEW FOR SEARS ROEBUCK & CO'S APPAREL ACCOUNT CITING A CAREFUL CONSIDERATION OF THE SUBSTANTIAL RESOURCES WHICH WOULD BE REQUIRED TO COMPETE EFFECTIVELY NEEDHAM ALONG WITH THE INCUMBENT AGENCY WPP GROUP'S OGILVY & MATHER WAS CONSIDERED A FRONTRUNNER TO SNARE THE ESTIMATED 20 MILLION BUSINESS NEEDHAM DECLINED TO COMMENT OFFICIALLY BEYOND A STATEMENT FROM KEITH REINHARD THE AGENCY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HOWEVER ACCORDING TO ONE AGENCY INSIDER NEEDHAM MIGHT HAVE REMAINED IN THE REVIEW WHICH IS EXPECTED TO BE COMPLETED IN MAY IF SEARS WAS DOING IT ITSELF BUT SEARS RETAINED CONSULTANTS MORGAN ANDERSON & CO TO CONDUCT THE REVIEW FURTHERMORE A NEEDHAM OFFICIAL SAYS THE AGENCY DOESN'T HAVE THE PEOPLE WE WOULD HAVE TO PUT TOGETHER TWO TEAMS AND WE DON'T HAVE 100 PEOPLE WALKING AROUND THE OFFICIAL SAYS IN A STATEMENT SEARS SAYS IT UNDERSTANDS THE REASONS PROVIDED BY NEEDHAM THIS WILL HAVE NO IMPACT ON THE REVIEW SEARS ALSO DISCOUNTED REPORTS THAT THE COST OF PARTICIPATING IN THE REVIEW WAS A FACTOR SEARS SAYS IT'S COMPENSATING ALL AGENCIES IN THE REVIEW WHICH NOW TOTAL FIVE OGILVY & MATHER SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING WELLS RICH GREENE BDDP YOUNG & RUBICAM AND HAL RINEY & PARTNERS SAN FRANCISCO THE NEW CAMPAIGN IS DUE IN THE FALL TV PETER CHRISANTHOPOULOS PRESIDENT OF THE NETWORK TELEVISION ASSOCIATION A CONSORTIUM FORMED IN 1990 OF THE THREE MAJOR BROADCAST ORGANIZATIONS WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT OF RESEARCH MARKETING AND PROMOTION AT CAPITAL CITIES/ABC TELEVISION NETWORK GROUP HIS SUCCESSOR AT THE NTA HAS YET TO BE DETERMINED 9303050058 930305 SECURITIES FIRMS SPECIALISTS REPORT JUMP IN '92 PROFITS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET'S PROFITS CATAPULTED TO AN ALLTIME HIGH LAST YEAR THANKS TO RECORD VOLUME OF NEW STOCK AND BOND ISSUES AND ROBUST TRADING THE NATION'S SECURITIES FIRMS HAD PRETAX PROFITS OF 618 BILLION IN 1992 UP 48 FROM 59 BILLION IN 1991 ACCORDING TO THE NEW YORK STOCK EXCHANGE WE KNEW 1992 HAD BEEN A STRONG YEAR IN TERMS OF ACTIVITY IN THE UNDERWRITING MARKET AND IN TERMS OF ACTIVITY IN THE SECONDARY MARKET SAID JEFFREY SCHAEFER SENIOR VICE PRESIDENT AT THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP MR SCHAEFER SAID HE EXPECTS THE PROFIT GAINS TO CONTINUE IN THE FIRST QUARTER OF THIS YEAR BUT HE SAID THE TREND FOR THE REST OF THE YEAR WILL DEPEND PARTLY ON INTEREST RATES IF RATES REMAIN LOW MONEY WILL CONTINUE TO FLOW INTO STOCKS AND BONDS HELPING BOOST PROFITS ON WALL STREET BUT IF RATES SHOOT BACK UP THEN SECURITIES PRICES WILL BE DEPRESSED AND MONEY IS LIKELY TO FLOW OUT OF THE STOCK MARKET AFTER TAXES WALL STREET TOOK HOME 408 BILLION LAST YEAR UP 57 FROM 1991 AFTERTAX PROFITS OF 386 BILLION AFTERTAX PROFITS IN THE FOURTH QUARTER DECLINED SLIDING TO 773 MILLION FROM 120 BILLION A YEAR EARLIER THAT'S A 72 RETURN ON AN ANNUAL BASIS ON THE FIRMS' AVERAGE NET WORTH ASSETS MINUS LIABILITIES OF 4270 BILLION THE BIG BOARD SAID BIG BOARD SPECIALIST FIRMS RACKED UP SOLID RETURNS TOO SPECIALISTS THE FLOOR TRADERS IN CHARGE OF TRADING STOCKS ON THE EXCHANGE REPORTED AFTERTAX PROFITS OF 82 MILLION A FOURYEAR HIGH ON REVENUE OF 437 MILLION LAST YEAR IN 1991 SPECIALISTS HAD AFTERTAX PROFITS OF 76 MILLION ON REVENUE OF 415 MILLION AFTER TAXES SPECIALISTS HAD A 113 RETURN ON CAPITAL LAST YEAR UP FROM 101 IN 1991 THE BIG BOARD SAID I THINK SPECIALISTS HAVE BECOME A LOT SMARTER IN THE LAST TWO YEARS IN TERMS OF BEING MORE AGGRESSIVE COMPETITORS AND FIGHTING FOR THE BUSINESS SAID ROBERT FAGENSON VICE PRESIDENT OF THE SPECIALIST ASSOCIATION A TRADE GROUP BUT MR FAGENSON SAID HE DOESN'T EXPECT SPECIALISTS' EARNINGS TO RETURN TO THE LEVELS OF 1987 WHEN BIG BOARD SPECIALISTS EARNED 147 MILLION THAT'S LARGELY BECAUSE LOWER FLOOR COMMISSION RATES HAVE EATEN INTO PROFITS IN THE FOURTH QUARTER SPECIALISTS' AFTERTAX PROFITS SOARED TO 28 MILLION FROM 12 MILLION A YEAR EARLIER MEANWHILE THE SECURITIES INDUSTRY SET SEVERAL OTHER RECORDS FOR THE FOURTH QUARTER AND FULL YEAR REVENUE ROSE 25 TO A RECORD 6283 BILLION FROM THE PREVIOUS HIGH OF 6132 BILLION IN 1991 CAPITAL OWNERSHIP EQUITY AND SUBORDINATED LIABILITIES ROSE 113 TO 4352 BILLION AT THE END OF THE FOURTH QUARTER FROM 3911 BILLION A YEAR EARLIER BUT SECURITIES FIRMS' ASSETS INCLUDING CASH RECEIVABLES SECURITIES AND PROPERTY FELL SHORT OF A RECORD ASSETS JUMPED 234 TO 74496 BILLION AT THE END OF THE FOURTH QUARTER FROM 60354 BILLION A YEAR EARLIER 9303050057 930305 TRAVEL NOW HOTEL CLERKS PROVIDE MORE THAN KEYS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL LEONA HELMSLEY MIGHT DISAPPROVE BUT EMPLOYEE EMPOWERMENT IS COMING AT LAST TO THE FRONT DESKS OF THE NATION'S HOTELS THE AUTHORITARIAN MANAGEMENT STYLE EMBODIED BY MRS HELMSLEY AND PRACTICED FOR DECADES BY HER PEERS IS GIVING WAY TO A MORE DEMOCRATIC ETHIC THAT ENCOURAGES HOTEL EMPLOYEES TO MAKE DECISIONS ON THEIR OWN AND HANDLE DISPUTES BY THEMSELVES THE CHANGE AFFECTS HOUSEKEEPERS BELLHOPS AND OTHER FRONTLINE EMPLOYEES BUT IS A PARTICULAR BLESSING FOR FRONTDESK CLERKS WHO HAVE USUALLY FELT HAMSTRUNG BY RIGID RULES WHILE TRYING TO DEFUSE TENSE CONFRONTATIONS WITH CUSTOMERS CLERKS TYPICALLY HAVE BEEN ALLOWED TO GRANT DISGRUNTLED GUESTS 10 REBATES BUT THAT PUNY LIMIT IS NOW GOING BY THE WAYSIDE AT MANY HOTELS FOR THEIR PART MANY TRAVELERS STILL DON'T KNOW THAT THE PEOPLE WHO HAND OVER THE ROOM KEYS MAY NOW HAVE THEIR FINGERS ON THE PURSE STRINGS AS WELL STARTING LAST YEAR FOR EXAMPLE RITZCARLTON HOTEL CO PERMITTED FRONTDESK CLERKS TO TAKE OFF UP TO 2000 FROM A GUEST'S BILL NO FORMAL RULES HAD EXISTED PREVIOUSLY DELEGATING MORE AUTHORITY TO EMPLOYEES IS HARDLY A RADICAL CONCEPT MANY MANUFACTURING COMPANIES ADOPTED SOME FORM OF EMPLOYEE EMPOWERMENT IN THE 1980S AND SAM WALTON SAID EMPOWERMENT WAS KEY TO THE SUCCESS OF WALMART STORES INC BUT UNTIL RECENTLY THE IDEA WAS CONSIDERED HERESY IN THE HIDEBOUND HOTEL INDUSTRY WHERE INDUSTRY PIONEERS IN PARTICULAR TRIED TO CONTROL EVERY DETAIL THE LATE J WILLARD MARRIOTT FOR EXAMPLE USED TO VISIT HIS HOTELS TO ENSURE THAT THE CORNBREAD COMPLIED WITH THE COMPANY RECIPE MANY GENERAL MANAGERS THOUGHT OF THEMSELVES AS EMPERORS OF THEIR HOTEL ALLSEEING ALLKNOWING RULERS OF THE DOMAIN SAYS TOM PARRINGTON EXECUTIVE VICE PRESIDENT OF FINANCE FOR INTERSTATE HOTELS CORP A HOTELMANAGEMENT COMPANY IN PITTSBURGH BUT IN THE LAST FEW YEARS THE NATION'S LARGEST HOTEL CHAINS INCLUDING MARRIOTT CORP ITT CORP'S SHERATON AND BEST WESTERN INTERNATIONAL INC PLUS MANY HOTELMANAGEMENT COMPANIES HAVE LOOSENED THE REINS ON EMPLOYEES THE INDUSTRY WHICH WAS BADLY OVERBUILT IN THE 1980S HAS HAD 16 BILLION IN LOSSES IN THE PAST THREE YEARS AND DESPERATELY NEEDS TO CUT COSTS WHILE IMPROVING SERVICE ONE ANSWER LAY OFF MANAGERS WHO USED TO SUPERVISE THE FRONTLINE STAFF AND GIVE THOSE EMPLOYEES AUTHORITY TO BETTER SERVE CUSTOMERS LAST YEAR THE HOTEL INDUSTRY HAD 815 EMPLOYEES PER 100 ROOMS COMPARED WITH 875 EMPLOYEES IN 1987 ACCORDING TO BJORN HANSON HEAD OF COOPERS & LYBRAND'S HOSPITALITYINDUSTRY CONSULTING GROUP FORCED TO MAKE DO WITH SMALLER STAFFS HOTEL COMPANIES ARE REALIZING THEY UNDERESTIMATED THEIR FRONTLINE EMPLOYEES EMPOWERMENT IS THE RECOGNITION THAT EMPLOYEES ARE NOT AS DUMB AS EMPLOYERS THOUGHT THEY WERE SAYS DARRYL HARTLEYLEONARD PRESIDENT OF HYATT HOTELS CORP WHOSE HOURLY WORKERS WERE GIVEN MORE RESPONSIBILITIES AFTER 20 OF THE MANAGEMENT STAFF WAS LAID OFF TWO YEARS AGO AT THE FAIRMONT HOTEL IN SAN FRANCISCO WHERE A SWEEPING EMPLOYEE EMPOWERMENT PROGRAM WAS ADOPTED TWO YEARS AGO FRONTDESK CLERKS GIVE AWAY JUST ABOUT ANYTHING TO BUILD UP CUSTOMER LOYALTY WE PRETEND LIKE IT'S OUR HOTEL AND WE CAN TAKE CARE OF PROBLEMS OURSELF SAYS FRONTDESK CLERK RANDY RICE WHO RECENTLY GAVE A FAIRMONT TERRYCLOTH ROBE TO A GUEST WHO COMPLAINED ABOUT EXCESS NOISE NEVER MIND THAT THE 45 GARMENTS ARE HARD TO KEEP IN STOCK THE EMPOWERMENT PROGRAM EVEN EXTENDS TO BELLHOPS AFTER KEITH HANLON HAD HELPED A COUPLE CELEBRATING THEIR 50TH WEDDING ANNIVERSARY TO THEIR ROOM HE SENT UP A BOTTLE OF ICED CHAMPAGNE HIS BUSINESS CARD ON THE SIDE IT SHOWS YOU'RE TAKING A PERSONAL INTEREST HE SAYS CUSTOMERS AT THE FAIRMONT HAVE CLEARLY NOTICED THAT THE FRONT DESK HAS BEEN TURNED INTO A HAVEN OF ACCOMMODATION BEAT POLTERA A SAN JOSE CALIF COMPUTER PROGRAMMER RECENTLY MADE A ROOM RESERVATION FOR A DISCOUNTED PRICE OF 100 WHEN HE ARRIVED HE WAS TOLD ALL ROOMS WERE FILLED THE FRONTDESK CLERK PROMPTLY SENT MR POLTERA TO THE SHERATON PLAZA WHERE THE FAIRMONT PICKED UP THE 250 ROOM BILL THE CLERK ALSO PAID FOR MR POLTERA'S PARKING FEE AT THE FAIRMONT AND TAXI FARE TO THE NEW HOTEL AND THREW IN A FREE MEAL AT THE FAIRMONT'S PLUSH CROWN ROOM AS WELL I WAS IN A STATE OF SHOCK MR POLTERA SAYS IT WASN'T THE MONEY BUT THE FACT THAT THE DECISION WAS MADE ON THE SPOT THE EXECUTIVE HAS STAYED AT THE FAIRMONT SEVERAL TIMES SINCE THE INCIDENT FRONTDESK CLERKS AREN'T THE ONLY ONES GIVING AWAY FREEBIES TONYA GREEN A HOUSE ATTENDANT AT A HAMPTON INN IN GREENSBORO NC SAW A GUEST CHANGE ROOMS TWICE BECAUSE OF A COLD DRAFT SO SHE FELT COMPELLED TO GIVE HIM THE 54ANIGHT ROOM FOR FREE I SAID SIR I WOULDN'T BE SATISFIED IF I HAD TO CHANGE ROOMS TWICE' SAYS MRS GREENE HER INITIATIVE REFLECTS A COMPANYWIDE PROGRAM IN WHICH CUSTOMERS ARE GIVEN A FREE NIGHT'S STAY IF THEY AREN'T COMPLETELY SATISFIED CRITICS SAY EMPLOYEESPONSORED LARGESSE CAN BE VERY COSTLY PARTICULARLY IF WORKERS ARE NOT GIVEN SUFFICIENT TRAINING ON HOW FAR TO GO TO ACCOMMODATE GUESTS WHAT'S MORE THESE CRITICS CONTEND GIVING EMPLOYEES GREATER AUTHORITY TO CORRECT MISTAKES CAN BE USED TO MASK DEEPER PROBLEMS HOTEL COMPANIES ARE USING FRONTLINE EMPLOYEES FOR DAMAGE CONTROL AND CALLING IT EMPOWERMENT SAYS CHEKITAN DEV ASSISTANT PROFESSOR OF HOTEL MARKETING AT CORNELL UNIVERSITY HOTELS INSTEAD SHOULD MAKE SURE THAT THEIR PRODUCT IS IN LINE WITH EXPECTATIONS HOTELIERS WHO HAVE ADOPTED EMPOWERMENT PROGRAMS ARE ALSO FAULTED FOR NOT PAYING THEIR EMPLOYEES HIGHER WAGES TO REFLECT THEIR ADDITIONAL RESPONSIBILITIES AT THE FAIRMONT FOR EXAMPLE A HOUSEKEEPER MAKES 450 A WEEK A FRONTDESK CLERK A FEW DOLLARS MORE JOHN V CERIALE THE HOTEL'S GENERAL MANAGER ARGUES THAT GIVING EMPLOYEES MORE RESPONSIBILITY IS ITS OWN REWARD BECAUSE THEY CAN DO THEIR JOBS MORE EASILY THE EXECUTIVE ALSO CONCEDES THAT SOMETIMES HIS STAFF'S EAGERNESS TO PLEASE IS COSTLY A URUGUAYAN COUPLE RECENTLY CHECKED IN FOR A WEEKLONG STAY ONLY TO HAVE A DOORMAN PUT THEIR LUGGAGE IN SOMEONE ELSE'S RENTAL CAR HEADED FOR OREGON MR CERIALE TOLD HIS STAFF TO BUY THE GUESTS CLOTHES TOILETRIES AND OTHER NECESSITIES THE GUESTS ENDED UP BUYING 3000 WORTH OF NECESSITIES THE SUITCASES WERE EVENTUALLY RETURNED BUT THE MONEY WAS GONE FOREVER WE PROBABLY COULD HAVE DONE IT FOR 1000 MR CERIALE SAYS SOME GUESTS WILL BEAT US BUT I'D RATHER HAVE THAT THAN ONE GUEST LEAVE NOT TAKEN CARE OF 9303050056 930305 TECHNOLOGY & HEALTH GRAND JURY CHARGES SYMANTEC OFFICERS WITH STEALING SECRETS FROM BORLAND BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL A GRAND JURY IN CALIFORNIA HANDED UP INDICTMENTS YESTERDAY AGAINST TWO OFFICERS OF SOFTWARE MAKER SYMANTEC CORP ALLEGING THAT THEY STOLE TRADE SECRETS FROM RIVAL BORLAND INTERNATIONAL INC THE INDICTMENTS COME AFTER A SIXMONTH INVESTIGATION BY THE DISTRICT ATTORNEY'S OFFICE OF SANTA CRUZ COUNTY CALIF INTO ALLEGATIONS THAT A BORLAND OFFICER BROUGHT CONFIDENTIAL COMPANY MATERIAL WITH HIM WHEN HE LEFT BORLAND TO JOIN SYMANTEC BORLAND CHARGED THAT THE OFFICER EUGENE WANG BEFORE HIS DEPARTURE HAD TRANSFERRED COMPANY SECRETS OVER ELECTRONIC MAIL TO GORDON EUBANKS CHIEF EXECUTIVE OFFICER OF SYMANTEC YESTERDAY'S INDICTMENTS ANNOUNCED BY ARTHUR DANNER III SANTA CRUZ DISTRICT ATTORNEY ACCUSE MR EUBANKS OF 11 COUNTS OF RECEIVING STOLEN PROPERTY AND OF CONSPIRING WITH MR WANG TO MISUSE INFORMATION ABOUT NEW PRODUCTS BEING DEVELOPED BY BORLAND THE INDICTMENT AGAINST MR WANG CURRENTLY EXECUTIVE VICE PRESIDENT OF SYMANTEC ACCUSES HIM OF 21 COUNTS OF VIOLATION OF TRADE SECRETS LAWS AND CONSPIRACY MR EUBANKS IN A PHONE INTERVIEW SAID THE INDICTMENTS WERE EXPECTED BORLAND DEFINITELY WANTS TO SEE US GO TO JAIL HE SAID BUT WE'RE INNOCENT WE HAVEN'T VIOLATED ANY LAW I COMMITTED NO CONSPIRACY MR EUBANKS WOULDN'T COMMENT ON THE SPECIFICS OF THE CASE BUT ADDED THAT IT SHOULD HAVE ZERO IMPACT ON THE COMPANY AND ITS OPERATIONS MR WANG ALSO SPEAKING BY PHONE SAID HE WILL BE VINDICATED WHEN THE FACTS COME OUT IN COURT WE HAVE RIGHT ON OUR SIDE AND WE'RE GONG TO PREVAIL HE SAID I'M INNOCENT BORLAND OFFICIALS WOULDN'T COMMENT ON THE INDICTMENT THE CHARGES AROSE IN SEPTEMBER AFTER BORLAND SAID IT DISCOVERED THAT MR WANG WHO HAD BEEN A BORLAND VICE PRESIDENT HAD TRANSMITTED ABOUT A DOZEN COMPUTER MESSAGES INCLUDING SECRET MARKETING PLANS AND CONFIDENTIAL BUSINESS PROPOSALS TO MR EUBANKS OVER PHONE LINES THROUGH ELECTRONIC MAIL FROM BORLAND'S SCOTTS VALLEY CALIF HEADQUARTERS THE LOCAL POLICE AND DISTRICT ATTORNEY INVESTIGATORS HELD SEARCHES OF MESSRS WANG'S AND EUBANKS'S HOMES AND SYMANTEC'S CUPERTINO CALIF OFFICES TO SEEK EVIDENCE BORLAND'S WIDELY REPORTED ACCUSATIONS AGAINST MESSRS EUBANKS AND WANG CAUSED GREAT CONSTERNATION AMONG SOME EXECUTIVES IN SILICON VALLEY AND IN THE SOFTWARE INDUSTRY WHO ACCUSED BORLAND OF TRUMPING UP CHARGES TO UNFAIRLY ATTACK ITS DEPARTING EXECUTIVE EMPLOYEES IN THE COMPUTER INDUSTRY FREQUENTLY CHANGE JOBS AND COMPANIES OFTEN FILE CIVIL LAWSUITS AGAINST DEPARTING EMPLOYEES TO KEEP THEM FROM USING COMPANY SECRETS BUT CRIMINAL CHARGES ARE RARE TOUGH CASE SANTA CRUZ PROSECUTORS MAY HAVE A TOUGH CASE TRADESECRETS LAWYERS SAY THAT UNDER CRIMINAL LAW PROSECUTORS MUST PROVE THAT THE INFORMATION SYMANTEC ALLEGEDLY TOOK FROM BORLAND HAS TECHNICAL OR SCIENTIFIC VALUE THEFT OF COMMERCIAL INFORMATION IS EASIER TO PROSECUTE UNDER CIVIL LAW AND BORLAND FILED CIVIL CHARGES AGAINST MR EUBANKS AND MR WANG IN SEPTEMBER THOSE CHARGES ARE PENDING CARL CARMAN A SYMANTEC'S DIRECTOR SAID THE SOFTWARE COMPANY'S BOARD LAST YEAR HIRED AN INDEPENDENT LAW FIRM TO LOOK INTO THE CHARGES THEY GAVE US THE OPINION THAT THERE WAS NO CRIME COMMITTED AND ALSO HAVE GIVEN US THE OPINION THAT NONE OF THESE ITEMS CONSTITUTE TRADE SECRETS UNDER CALIFORNIA LAW SAID MR CARMAN WHO IS A PARTNER OF MASTERS FUND PARTNERSHIP A BOULDER COLO VENTURE CAPITAL FUND 9303050054 930305 COMMERCIAL REAL ESTATE IS BACK IN STYLE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL LAST YEAR WASHINGTON OFFICE DEVELOPER OLIVER CARR WAS IN A FINANCIAL PINCH HE HAD A SPATE OF MORTGAGES COMING DUE HE LOST HIS STAKE IN ONE NEW OFFICE BUILDING AND HIS LENDERS WERE AFTER ANOTHER YET LAST MONTH MR CARR TOOK HIS COMPANY PUBLIC EASILY RAISING 174 MILLION 20 MILLION MORE THAN THE BEST EXPECTATIONS OF HIS UNDERWRITER MR CARR PAID OFF HIS BIGGEST LENDER EQUITABLE COS WITH CASH AND STOCK AND IS BACK IN THE DEALMAKING BUSINESS WHAT'S GOING ON HERE MANY INVESTORS IT SEEMS ARE CONVINCED THAT THE LONG DIZZYING PLUNGE IN COMMERCIAL REAL ESTATE VALUES IS FINALLY OVER SINCE NOVEMBER COMMERCIAL REAL ESTATE DEVELOPERS HAVE RAISED 929 MILLION IN INITIAL PUBLIC OFFERINGS OF REAL ESTATE INVESTMENT TRUSTS BANKAMERICA CORP AND FIRST CHICAGO CORP RAISED EYEBROWS BY FINDING BUYERS FOR A COMBINED 27 BILLION OF BAD REAL ESTATE LOANS AND PROPERTIES SHARPER COMPETITION HAS DRIVEN UP PRICES AT RESOLUTION TRUST CORP REAL ESTATE SALES AND REPUTEDLY SHREWD INVESTORS LIKE FINANCIER GEORGE SOROS HAVE JUMPED INTO THE MARKET QUITE UNEXPECTEDLY THE INVESTMENT SECTOR THAT DECIMATED THE THRIFT INDUSTRY AND CRIPPLED SCORES OF BANKS AND INSURANCE COMPANIES IS BACK IN FAVOR THE FREEFALL PHASE IS OVER SAYS DAVID SHULMAN HEAD OF EQUITY RESEARCH AT SALOMON BROTHERS INC AND A LONGTIME BEAR ON REAL ESTATE THIS IS THE BEGINNING OF THE BOTTOMING PROCESS BUT IT'S GOING TO BE A LONG ONE STAN ROSS HEAD OF REAL ESTATE WORKOUTS AT ACCOUNTANT KENNETH LEVENTHAL & CO AGREES WE SEEM TO BE AT A CRITICAL JUNCTURE HERE HE SAYS AT THESE PRICES THE MARKET IS SAYING THAT RETURNS ARE ATTRACTIVE AFTER FOUR YEARS OF BLOODLETTING MANY LOANS BACKED BY COMMERCIAL BUILDINGS HAVE TUMBLED IN VALUE TO ABOUT 50 CENTS ON THE DOLLAR STILL WITH A HUGE OVERSUPPLY OF OFFICE BUILDINGS AND OTHER PROPERTIES FEW NEW INVESTORS BELIEVE COMMERCIAL REAL ESTATE PRICES ARE POISED TO REBOUND MOST ARE ENTERING THE MARKET FOR A SINGLE REASON PRICES ARE LOW ENOUGH THAT RENTAL INCOME FROM PROPERTIES CAN PRODUCE ANNUAL RETURNS UPWARD OF 8 THE MORE LONGTERM INTEREST RATES FALL THE MORE ATTRACTIVE THAT LOOKS CAPITALSTARVED REAL ESTATE COMPANIES ARE DESPERATE TO TAP THE MARKET EIGHT WENT PUBLIC LAST YEAR RAISING 9123 MILLION AND ANOTHER 11 BILLION WAS RAISED IN SECONDARY OFFERINGS THE COMPANIES ARE SELLING THEMSELVES AS REAL ESTATE INVESTMENT TRUSTS OR REITS WHICH BY LAW MUST DISTRIBUTE VIRTUALLY ALL THEIR INCOME TO SHAREHOLDERS THE NEW OLIVER CARR REIT FOR EXAMPLE OFFERED ANNUAL CASH DIVIDENDS OF 77 WHEN IT WENT PUBLIC BY COMPARISON YIELDS ON 30YEAR TREASURY BONDS HAVE DIPPED BELOW 7 INVESTORS ARE RUSHING TO TAKE ADVANTAGE FIDELITY REAL ESTATE PORTFOLIO A MUTUAL FUND WITH MOST OF ITS ASSETS IN REITS BALLOONED IN SIZE TO MORE THAN 300 MILLION IN EARLY FEBRUARY FROM 150 MILLION JUST FIVE WEEKS EARLIER AND TRIPLE ITS SIZE OF EARLY OCTOBER WHEN SHARE PRICE APPRECIATION IS COUNTED EQUITY REITS RETURNED 146 LAST YEAR COMPARED WITH 77 FOR THE STANDARD & POOR'S 500STOCK INDEX THE POTENTIAL FOR FAVORABLE RETURNS IS ALSO LURING NEW INVESTORS INTO THE TRICKY HIGHSTAKES BUSINESS OF BUYING SOURED LOANS IN BULK BUYERS CAN THEN EITHER FORECLOSE ON THE UNDERLYING PROPERTIES OR RESTRUCTURE THE LOANS WELLCAPITALIZED PLAYERS PERCEIVE THAT SUCH PORTFOLIOS OF DISTRESSED REAL ESTATE AT THE RIGHT PRICE CAN GENERATE TOTAL RETURNS OF MORE THAN 25 IN THREE TO FOUR YEARS WHEN WE STARTED THIS STUFF WE HAD TO BEAT THE BUSHES FOR BUYERS SAID LAMAR KELLY HEAD OF ASSETS SALES FOR THE RESOLUTION TRUST CORP WHICH HAS SOLD OVER 10 BILLION OF BAD REAL ESTATE ASSETS NOW THERE'S A FEEDING FRENZY FOR THE STUFF REAL ESTATE BOTTOMFISHERS LIKE CHICAGO'S SAM ZELL AND VIRGINIA'S JOSEPH ROBERT JR HAVE BEEN JOINED BY SUCH MAINSTREAM WALL STREET NAMES AS GOLDMAN SACHS & CO MORGAN STANLEY & CO AND MR SOROS THE FINANCIER MR SOROS HAS SET UP A PARTNERSHIP WITH PAUL REICHMANN WHOSE MULTIBILLIONDOLLAR REAL ESTATE EMPIRE IS BEING LIQUIDATED BY LENDERS IT'S EASIER TO SELL NONPERFORMING LOANS THAN PERFORMING LOANS IN TODAY'S MARKET MARVELS CHARLES TOPPINO A PRINCIPAL OF LOS ANGELESBASED SECURED CAPITAL CORP WHICH HAS ADVISED THE RTC ON A NUMBER OF RECENT SALES THE RTC'S FIRST PORTFOLIO SALE TWO YEARS AGO DREW JUST FOUR BIDDERS AND THE PROPERTIES SOLD FOR 70 OF THE AGENCY'S ESTIMATE OF VALUE BASED ON CASH FLOW ACCORDING TO SECURED CAPITAL THE LAST 10 DEALS HOWEVER HAVE ATTRACTED AN AVERAGE OF 22 BIDDERS AND FETCHED MORE THAN 90 OF ESTIMATED VALUE BUT THERE'S STILL PLENTY OF DISTRESSED COMMERCIAL REAL ESTATE LEFT WILLIAM BRUEGGEMAN DIRECTOR OF REAL ESTATE RESEARCH AT GOLDMAN SACHS ESTIMATES THAT ABOUT 100 BILLION IN REAL ESTATE LOANS MUCH OF THEM HELD BY INSURANCE COMPANIES HAVE YET TO BE WRITTEN DOWN FORECLOSED ON OR OTHERWISE REPRICED WHAT ISN'T KNOWN IS HOW MUCH OF THAT TOTAL WILL GO ON THE MARKET THE CURRENT BUYING SPREE SOME BY INVESTORS NEW TO THE REAL ESTATE GAME IS MAKING CERTAIN SEASONED REAL ESTATE BUYERS INCREASINGLY UNEASY A LOT OF PEOPLE WHO HAVE AN INTEREST IN GETTING INTO THIS GAME DON'T HAVE ANY EXPERIENCE IN REAL ESTATE SAYS DANIEL NEIDICH GOLDMAN'S HEAD OF REAL ESTATE INVESTMENT THEY THINK THAT THIS IS JUST LIKE ANY OTHER COMMODITY THAT THE WHOLE MARKET IS GOING TO GO UP SO THEY'LL JUST BET ON THE MARKET THAT'S A DANGEROUS POSITION TO TAKE YOU CAN OVERPAY FOR BAD PROPERTIES EVEN IN THIS MARKET THOMAS ROBINSON A COOPERS & LYBRAND PARTNER WHO HELPED STRUCTURE A NUMBER OF RECENT REIT OFFERINGS WARNS WE'RE VERY CLOSE TO THE MARKET BEING JUST TOO HOT SOME REIT DEALS NOW IN THE WORKS INVOLVE OFFICES IN WEAK REALESTATE MARKETS AND BUILDINGS SCATTERED OVER NUMEROUS CITIES MAKING THE RISKS FAR MORE DIFFICULT TO CALCULATE THERE'S SOMETHING THAT'S UNREAL IN THIS MARKET SAYS BENJAMIN LAMBERT CHAIRMAN OF EASTDIL REALTY INC A NEW YORK REAL ESTATE INVESTMENT BANKING FIRM THESE DEALS ARE GOING TO GET LOOSE AND UNTIDY AND PEOPLE AREN'T GOING TO LOOK AT THEM AS CAREFULLY AS THEY SHOULD WHILE LAST YEAR'S RUNUP IN REIT SHARE PRICES ATTRACTED MORE NEW INVESTORS SOME ANALYSTS THINK IT ALSO MADE INVESTMENT DECISIONS A BIT TRICKIER PROPERTIES ARE NOW SELLING FOR MORE ON WALL STREET THAN THEY ARE ON MAIN STREET SAYS ANALYST JON FOSHEIM WHO COVERS REAL ESTATE SECURITIES FOR GREEN STREET ADVISORS IN NEWPORT BEACH CALIF IT COULD BE THAT MAIN STREET IS WRONG IT COULD BE THAT WALL STREET IS MAKING A PREDICTION THAT REAL ESTATE VALUES ARE GOING TO GO UP THE GROWING NUMBER OF BIDDERS AT BULK SALES OF DISTRESSED LOANS AND PROPERTIES IS ALSO MAKING THOSE INVESTMENTS RISKIER THAN THEY WERE LAST YEAR IT WILL BE SEVERAL YEARS BEFORE IT IS CLEAR WHETHER ANYONE OVERPAID IN THE DOZENS OF BULK SALES ALREADY HELD RICHARD SALZMAN WHO HEADS MERRILL LYNCH & CO'S REAL ESTATE DEPARTMENT SAYS THAT THE PEOPLE WHO GOT IN AT THE EARLY STAGES WHEN IT WAS LESS COMPETITIVE HAVE A SHOT AT MAKING A LOT MORE MONEY THAN THOSE THAT GOT IN LATER 9303050053 930305 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 CIGNA CORP 100 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2023 WAS PRICED AT PAR TO YIELD 765 RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LIMITED INC 250 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2023 WAS PRICED AS 7 1/2 AT 98824 TO YIELD 76 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 86 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC EARLE M JORGENSEN CO 156 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2000 WAS PRICED AS 10 3/4 AT 99392 TO YIELD 10875 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P CARNIVAL CRUISE LINES 200 MILLION ISSUE OF NOTES DUE MARCH 15 1998 WAS PRICED AT PAR TO YIELD 575 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC GANNETT CO 275 MILLION OFFERING OF NOTES DUE MARCH 1 1998 WAS PRICED AS 5 1/4 AT 99682 TO YIELD 5323 A 37 BASIS POINT SPREAD ABOVE THE FIVEYEAR TREASURY RATED AA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANKS 118 MILLION ISSUE OF NOTES DUE MARCH 12 1996 WAS PRICED AT PAR TO YIELD 4265 INITIALLY THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO TIMES MIRROR CO 150 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2013 WAS PRICED AS 7 1/8 AT 9915 TO YIELD 7206 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SOUTHERN CALIFORNIA GAS CO 100 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE MARCH 1 1998 WAS WON IN A COMPETITIVE BID BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE BONDS ARE BEING REOFFERED TO THE PUBLIC AS 5 1/4 AT 9980 TO YIELD 5296 A 40 BASIS POINT SPREAD ABOVE THE FIVEYEAR TREASURY NOTE THE NONCALLABLE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHERN CALIFORNIA GAS IS A UNIT OF PACIFIC ENTERPRISES SOUTHERN CALIFORNIA GAS CO 100 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY DEALERS LED BY FIRST BOSTON CORP THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AS 7 3/8 AT 99684 TO YIELD 7401 FIRST BOSTON'S BID RESULTED IN A 7449 NET INTEREST COST TO THE COMPANY THE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE BONDS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P NORTHERN STATES POWER CO WISCONSIN 110 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE MARCH 1 2023 WAS PRICED AS 7 1/4 AT 98434 TO YIELD 738 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO THE BORROWER IS A UNIT OF NORTHERN STATES POWER CO AMERICAN GENERAL FINANCE CORP 150 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2003 WAS PRICED AT PAR TO YIELD 6375 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 53 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AMERICAN GENERAL FINANCE IS A UNIT OF AMERICAN GENERAL CORP TEXACO INC 200 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2043 WAS PRICED AS 7 1/2 AT 98839 TO YIELD 759 THE ISSUE NONCALLABLE FOR 20 YEARS WAS PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SOCIETY NATIONAL BANK OFFERING OF 100 MILLION OF BANK NOTES DUE MARCH 10 1994 THROUGH MERRILL LYNCH & CO THE NONCALLABLE ISSUE WAS PRICED AT PAR TO YIELD 335 AT A SPREAD OF 15 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P SOCIETY GENERAL BANK IS A UNIT OF SOCIETY CORP ANALOG DEVICES INC 80 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2000 WAS PRICED AS 665 AT 99765 TO YIELD 667 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 130 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MASSACHUSETTS TURNPIKE AUTHORITY 3657 MILLION 1993 SERIES A TURNPIKE REVENUE REFUNDING BONDS HAVE BEEN REPRICED BY A BEAR STEARNS & CO GROUP FOLLOWING THE REPRICING AT WHICH MOST YIELDS WERE LOWERED 50 TO 100 BASIS POINTS DUE TO STRONG DEMAND YIELDS RANGE FROM 400 IN 1998 TO 548 IN 2020 INITIALLY YIELDS RANGED FROM 410 IN 1998 TO 555 IN 2019 THE 2019 TERM BONDS HAVE BEEN ELIMINATED AND REPLACED BY 2020 SECURITIES THE 2019 BONDS WERE 500 PRICED TO YIELD 555 THE 2020 BONDS ARE 500 PRICED TO YIELD 548 MOST OF THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P HOWEVER TERM BONDS DUE IN 2023 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WISCONSIN 138 MILLION SERIES 2 GENERAL OBLIGATION REFUNDING BONDS OF 1993 HAVE BEEN REPRICED BY A MERRILL LYNCH & CO GROUP YIELDS FOR BONDS DUE IN 19992004 WERE LOWERED BY 50 BASIS POINTS DUE TO STRONG DEMAND BUT OVERALL YIELDS STILL RANGE FROM 220 IN 1993 TO 520 IN 200911 DESPITE THE REPRICING MOODY'S AND S&P HAVE RATED THE OFFERING DOUBLEA TRIBOROUGH BRIDGE & TUNNEL AUTHORITY OF NEW YORK CITY 5794 MILLION SERIES 1993A GENERAL PURPOSE REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A DILLON READ & CO GROUP YIELDS RANGE FROM 210 IN 1994 TO 548 IN 2015 MOODY'S HAS RATED THE OFFERING DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1494 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES APRIL 30 CASTLE & COOKE HOMES INC INITIAL OFFERING OF 54 MILLION SHARES WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 14 AND 16 A SHARE THE SIZE OF THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED FIVE MILLION SHARES CALDOR CORP OFFERING OF 1869802 COMMON SHARES WAS PRICED AT 3050 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PART OF A GLOBAL OFFERING OF A TOTAL OF 2329802 SHARES THE COMPANY IS SELLING 15 MILLION OF THE SHARES AND CERTAIN STOCKHOLDERS ARE SELLING THE REST BAYERISCHE HYPOTHEKEN & WECHSEL BANK AG GERMANY 150 MILLION OF 7 EUROBONDS DUE DEC 21 1998 AT ISSUE PRICE OF 100655 VIA DEUTSCHE BANK CAPITAL MARKETS LTD AND SAMUEL MONTAGU & CO LTD REOFFERED AT 9913 TO YIELD 718 A MARGIN OF ABOUT 50 BASIS POINTS ABOVE UK TREASURY'S 7 1/4 GILT DUE MARCH 1998 AT LAUNCH FEES 1 7/8 POINTS RANK ORGANISATION PLC UK 100 MILLION OF 8 3/8 EUROBONDS DUE APRIL 5 2000 AT ISSUE PRICE 10007 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 9857 TO YIELD 8656 A MARGIN OF 140 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT NOTE BONDS CALLABLE AT ANY TIME AT HIGHER OF PAR OR PRICE EQUATING TO PREVAILING YIELD OF REFERENCE GILT FEES 1 7/8 POINTS GREAT BELT AS DANISH AGENCY 35 BILLION YEN OF 4 1/4 EUROBONDS DUE MARCH 23 1998 AT ISSUE AND REOFFER PRICE 10010 VIA DAIWA EUROPE LTD AND NORINCHUKIN INTERNATIONAL LTD YIELD 4227 AT REOFFER MARGIN 60 BASIS POINTS OVER COMPARABLE JAPANESE GOVERNMENT NOTE GUARANTOR KINGDOM OF DENMARK FEES 025 POINT GREAT BELT AS DANISH AGENCY 15 BILLION DANISH KRONER OF ZEROCOUPON EUROBONDS DUE APRIL 2 2003 VIA KIDDER PEABODY INTERNATIONAL LTD REOFFERED TO YIELD EQUIVALENT OF 8141 ANNUALLY A SPREAD OF 20 BASIS POINTS OVER COMPARABLE DANISH GOVERNMENT GUARANTOR KINGDOM OF DENMARK FEES NOT DISCLOSED BIL FINANCE LIECHTENSTEIN PARENT 80 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE APRIL 6 1998 PRICED AT 10100 VIA UNION BANK OF SWITZERLAND FEES 1 5/8 RABOBANK NEDERLAND NV NETHERLANDS 100 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 30 2000 AT AN ISSUE AND REOFFER PRICE OF 9987 VIA LEHMAN BROTHERS INTERNATIONAL LTD BONDS PAY COUPON BASED ON FOLLOWING FORMULA CONSTANT MATURITY TREASURY CMT A REFERENCE RATE CALCULATED BY THE FEDERAL RESERVE BANK MULTIPLIED BY 05 PLUS 145 SUBJECT TO A MINIMUM OF 5 AND A MAXIMUM OF 28 FEES 045 INTEREST PAYABLE SEMIANNUALLY COPENE BRAZIL 50 MILLION OF 105 EUROBONDS DUE MARCH 25 1998 AT AN ISSUE AND REOFFER PRICE OF 97153 VIA CITIBANK NOTES CARRY PUT OPTION WHICH CAN BE EXERCISED ON SEPT 25 AT 9627 YIELD TO PUT 1048 YIELD TO MATURITY 1126 FEES 1 5/8 POINTS 9303050052 930305 FIRMS PLEDGE 100 MILLION TO AID TWO CHICAGO HALLS CHICAGO TWENTYTHREE MAJOR CORPORATIONS AND TWO OF THE CITY'S LARGEST FOUNDATIONS HAVE PLEDGED TO PROVIDE 100 MILLION FOR MAJOR RENOVATION AND EXPANSION OF THE PERFORMING ARTS SPACES OF THE LYRIC OPERA OF CHICAGO AND THE CHICAGO SYMPHONY ORCHESTRA ACCORDING TO OPERA AND ORCHESTRA OFFICIALS MORE THAN 85 MILLION HAS BEEN RAISED TO DATE AND THE FUNDS WILL BE DIVIDED EQUALLY BETWEEN THE TWO ORGANIZATIONS THEY SAY 100 MILLION REPRESENTS ABOUT HALF THE AMOUNT NEEDED TO PROCEED WITH THEIR RESPECTIVE RENOVATION AND EXPANSION PLANS BOTH ORGANIZATIONS WILL RAISE THE BALANCE OF THE REQUIRED FINANCING BOTH THE ORCHESTRA AND THE OPERA ARE CONSTRAINED BY SEVERE TECHNICAL AND SPACE LIMITATIONS IMPOSED BY OUTOFDATE PERFORMANCE HALLS SOME OF THE CORPORATIONS INVOLVED IN THE FUNDRAISING EFFORT ARE FIRST CHICAGO CORP AON CORP AMOCO CORP ABBOTT LABORATORIES UNITED AIRLINES QUAKER OATS CO SARA LEE CORP AND WASTE MANAGEMENT INC 9303050051 930305 ECONOMY MAJOR RETAILERS POST SLIGHT GAIN FOR LAST MONTH WEATHER WARINESS BLAMED FOR MEAGER 1 INCREASE FROM THE YEAR BEFORE BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL A STRING OF STRONG MONTHLY SALES GAINS REGISTERED BY MANY BIG US RETAILERS ENDED IN FEBRUARY AS NASTY WEATHER HURT RECEIPTS SOME ANALYSTS ALSO CITED CONSUMER WARINESS ABOUT PRESIDENT CLINTON'S ECONOMIC PROPOSALS FEBRUARY RETAIL SALES FOR STORES OPEN AT LEAST ONE YEAR ROSE A MEAGER 1 FROM A YEAR EARLIER ACCORDING TO SALOMON BROTHERS' INDEX OF 22 RETAILERS ANALYSTS YESTERDAY GENERALLY AGREED THAT FEBRUARY'S LACKLUSTER RESULTS DON'T NECESSARILY SIGNAL A SLOWDOWN IN RETAIL SPENDING FEBRUARY TYPICALLY IS THE SLOWEST MONTH FOR RETAIL SALES AND THIS YEAR LACKED THE BIG INVENTORYCLEARANCE BARGAINS THAT HAVE ATTRACTED CUSTOMERS IN PREVIOUS YEARS INDEED THE LACK OF HEFTY MARKDOWNS ON GOODS AS WELL AS LEANER INVENTORIES AT MANY STORES ARE LIKELY TO TRANSLATE INTO STRONGER PROFITS FOR RETAILERS ANALYSTS SAID BUT FEBRUARY'S LOWERTHANEXPECTED SALES NOW HAVE GIVEN GREATER SIGNIFICANCE TO RECEIPTS IN COMING MONTHS AMONG THE VARIOUS SEGMENTS IN THE RETAIL ARENA THE SOFTNESS WAS EVENLY DISTRIBUTED FROM UPSCALE DEPARTMENT STORES TO DISCOUNT GENERAL MERCHANDISE OPERATORS THE BIGGEST DISTINCTION APPEARED AMONG STORES IN THE NORTHEAST AND MIDWEST WHERE STORES ALMOST UNIFORMLY PERFORMED BELOW EXPECTATIONS AS THOSE AREAS WERE REPEATEDLY HIT BY COLD SPELLS AND SNOWSTORMS TEMPERATURES IN THOSE TWO REGIONS AVERAGED WELL BELOW THE POINT AT WHICH RETAIL SALES BEGIN TO BE AFFECTED BY WEATHER ACCORDING TO JEFFREY FEINER A SALOMON ANALYST APPAREL SALES TEND TO BE THE MOST AFFECTED BY INCLEMENT WEATHER HE ADDED MODERATEPRICED RETAILER LIMITED INC FOR EXAMPLE POSTED AN OVERALL DECLINE OF 6 IN SAMESTORE SALESVOLUME AT STORES OPEN AT LEAST A YEAR BUT ITS STORES IN THE SOUTH WHERE THE WEATHER WAS MILD ACTUALLY INCREASED IN FEBRUARY ACCORDING TO JEFFREY EDELMAN AN ANALYST WITH CJ LAWRENCE INC MR EDELMAN ESCHEWED THE NOTION THAT PRESIDENT CLINTON'S ECONOMIC PROPOSALS HURT RETAIL SALES LAST MONTH'S RESULTS HE SAID DON'T REFLECT NEGATIVE REACTION TO THE PRESIDENT'S PROPOSALS OTHER ANALYSTS DISAGREED BEFORE PRESIDENT CLINTON'S PROPOSALS THERE WOULD HAVE BEEN MORE UPSIDE POTENTIAL FOR RETAIL SALES SAID THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN CO WHAT WE SAW DURING FEBRUARY WAS UNCERTAINTY AS A RESULT OF THE PRESIDENT SPEAKING ON TELEVISION FOR TWO NIGHTS IN ONE WEEK TO EXPLAIN HIS ECONOMIC PROPOSALS MR TASHJIAN SAID HE EXPECTS RETAIL SALES TO FLUCTUATE OVER THE COMING MONTHS AS PRESIDENT CLINTON'S ECONOMIC PROPOSALS ARE HONED AND MOVE THROUGH CONGRESS IN FEBRUARY WALMART STORES INC AND JC PENNEY CO MANAGED PERHAPS THE BEST PERFORMANCE AMONG THE BIGGEST RETAILERS AS THEY POSTED SAMESTORE GAINS OF 6 AND 47 RESPECTIVELY PENNEY LIKE OTHER RETAILERS SAID ITS SALES TAILED OFF IN THE SECOND HALF OF THE MONTH WHEN THE WEATHER WORSENED KMART CORP REPORTED A 23 SAMESTORE SALES INCREASE IN ITS GENERAL MERCHANDISE STORES THE COMPANY SAID SALES OF CONSUMABLE PRODUCTS AND HOME ELECTRONICS WERE AMONG THE STRONGEST OF ITS MERCHANDISE MIX MEANWHILE SEARS ROEBUCK & CO RECORDED A 22 SALES GAIN THE RESULTS DON'T INCLUDE SALES FROM THE 113 STORES THE COMPANY PLANS TO CLOSE THIS YEAR AS PART OF ITS BROAD RESTRUCTURING SEPARATELY THE BIG RETAILER SAID IT IS CREATING NEW DISPLAY FORMATS FOR SOME SMALL KITCHEN APPLIANCES OFFICE FURNITURE AND LUGGAGE IN 150 OF ITS BIGGEST STORES FEDERATED DEPARTMENT STORES INC WHICH OPERATES ABRAHAM & STRAUS BLOOMINGDALE'S JORDAN MARSH AND SEVERAL OTHER STORE CHAINS REPORTED A SAMESTORE SALES INCREASE OF 14 DAYTON HUDSON CORP SAID ITS SAMESTORE SALES INCREASED 22 IN THE FOURWEEK PERIOD THE COMPANY SAID SALES IN ITS TARGET DISCOUNT CHAIN AND MERVYN'S MODERATEPRICED STORES MET EXPECTATIONS BUT SALES IN ITS DEPARTMENT STORES DROPPED 8 WE DIDN'T HAVE ANY CLEARANCE TO SPEAK OF A SPOKESWOMAN SAID OF THE DEPARTMENTSTORE PERFORMANCE MAY DEPARTMENT STORES THE NATION'S LARGEST DEPARTMENTSTORE OPERATOR REPORTED SAMESTORE SALES INCHED FORWARD 19 LAST MONTH 9303050050 930305 BLUE CROSS OPERATION AMERICAN EXPRESS PLAN TO OFFER BILLING SERVICE NEWARK NJ BLUE CROSS & BLUE SHIELD OF NEW JERSEY INC AND AMERICAN EXPRESS CO SAID THEY AGREED TO DEVELOP A HEALTHCARE PAYMENT SERVICE SIMPLIFYING BILLING AND OUTOFPOCKET PAYMENT FOR INDIVIDUAL SUBSCRIBERS THE NEW SERVICE CALLED QUATTRO WILL BE OFFERED TO SELECTED BLUE CROSS & BLUE SHIELD MEMBERS AND HEALTHCARE PROVIDERS STARTING IN THE FALL EMPLOYEES OF COMPANIES PARTICIPATING IN QUATTRO WILL BE AUTOMATICALLY ENROLLED IN THE PLAN INSTEAD OF PAYING UP FRONT FOR DOCTOR VISITS AND THEN BEING REIMBURSED BY THE INSURER ENROLLED EMPLOYEES WILL GO TO A PHYSICIAN USING QUATTRO WHO THEN BILLS BLUE CROSS & BLUE SHIELD THE INSURER PAYS THE DOCTOR IN FULL BUT ALSO DETERMINES THE CHARGES IT COVERS AND THE PORTION THE EMPLOYEE PAYS THE INSURER SENDS THE PAYMENT INFORMATION TO AMERICAN EXPRESS WHICH PAYS THE EMPLOYEE'S PORTION AMERICAN EXPRESS THEN SENDS A MONTHLY BILL TO THE EMPLOYEE WITH A STATEMENT EXPLAINING THE VARIOUS CHARGES AN AMERICAN EXPRESS SPOKESMAN SAID THE NEW PLAN STREAMLINES BILL PAYMENT FOR EMPLOYEES AND THE STATEMENTS WOULD MAKE THEM BETTER INSURANCE CONSUMERS UNDER QUATTRO EMPLOYEES DON'T HAVE TO WAIT FOR INSURANCE REIMBURSEMENT AND ONLY HAVE TO WRITE ONE CHECK TO COVER A MONTH'S MEDICAL BILLS THE SPOKESMAN SAID AMERICAN EXPRESS IS CURRENTLY DISCUSSING SETTING UP SIMILAR BILLING SYSTEMS WITH SEVERAL OTHER MAJOR HEALTHCARE INSURERS 9303050049 930305 SOCIETY FOR SAVINGS HOLDERS APPROVE SALE TO BANK OF BOSTON HARTFORD CONN SOCIETY FOR SAVINGS BANCORP INC SAID ITS SHAREHOLDERS APPROVED THE SALE OF THE COMPANY TO BANK OF BOSTON CORP BUT A DISSIDENT SHAREHOLDER FILED SUIT TO BLOCK THE ACQUISITION BANK OF BOSTON HAS AGREED TO BUY SOCIETY IN A STOCK SWAP VALUED AT A MAXIMUM OF 20 A SHARE OR ABOUT 240 MILLION BUT DISSIDENTS CLAIM SOCIETY IS WORTH AS MUCH AS 30 A SHARE AND SAID RECENTLY THAT POTENTIAL BUYERS MAY BE WILLING TO TOP BANK OF BOSTON'S BID NONETHELESS SOCIETY FOR SAVINGS SAID SHAREHOLDERS OVERWHELMINGLY APPROVED THE PURCHASE BY BANK OF BOSTON WITH 76 OF THE SHARES CAST VOTING IN FAVOR 21 AGAINST AND 3 ABSTAINING HEINE SECURITIES CORP WHICH HOLDS ABOUT A 6 STAKE IN SOCIETY FOR SAVINGS AND OPPOSES THE BANK OF BOSTON OFFER HASN'T IDENTIFIED OTHER INTERESTED PARTIES AND SOCIETY FOR SAVINGS SAID IT HAS RECEIVED NO EXPRESSIONS OF INTEREST FROM OTHER PARTIES SOCIETY ALSO SAID IT MOST OF ITS DIRECTORS AND BANK OF BOSTON WERE NAMED AS DEFENDANTS IN A SUIT FILED IN DELAWARE CHANCERY COURT BY THE HOLDER OF 500 SHARES OF SOCIETY STOCK THE COMPLAINT FILED AS A CLASS ACTION SUIT ALLEGES DIRECTORS RECKLESSLY BREACHED THEIR FIDUCIARY DUTY IN APPROVING THE MERGER A SOCIETY SPOKESMAN SAID THE SUIT IS WITHOUT MERIT IF CLEARED BY THE COURTS AND APPROVED BY VARIOUS REGULATORY AUTHORITIES THE MERGER IS EXPECTED TO BE COMPLETED IN THE SECOND QUARTER OF 1993 SOCIETY SAID UNDER THE AGREEMENT SOCIETY HOLDERS WOULD RECEIVE A MAXIMUM OF 20 OF BANK OF BOSTON FOR EACH SOCIETY SHARE THERE ARE 1196 MILLION SOCIETY SHARES OUTSTANDING SOCIETY BASED IN HARTFORD CONN HAS 26 BILLION IN ASSETS BANK OF BOSTON WITH ASSETS OF 323 BILLION IS NEW ENGLAND'S SECOND LARGEST BANK HOLDING COMPANY 9303050048 930305 OTC FOCUS HEALTH AND TECHNOLOGY SECTORS PREVENT MARKET CLIMBING THIRD DAY IN A ROW BY MARY ROMANO AND ELVIRA DOMENICONE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FALLING TECHNOLOGY AND HEALTHCARE ISSUES PREVENTED OVERTHECOUNTER STOCKS FROM RISING FURTHER AFTER POSTING GAINS FOR TWO SESSIONS IN A ROW THE WEAKNESS IN NASDAQ ISSUES ALSO WAS MIRRORED IN BIG BOARD ACTION THE DOW JONES INDUSTRIAL AVERAGE LOST 513 POINTS TO 339891 AND THE NEW YORK STOCK EXCHANGE COMPOSITE DROPPED 088 TO 24653 MARKET OBSERVERS SAID THERE WASN'T ANY MAJOR FINANCIAL NEWS TO SWAY THE MARKET EITHER WAY SO THERE WAS SIMPLY PROFITTAKING EVEN AN AFTERNOON ANNOUNCEMENT OF THE ARREST OF A SUSPECT IN CONNECTION WITH THE BOMBING FRIDAY AT THE WORLD TRADE CENTER DIDN'T HAVE AN EFFECT ON TRADING MARKET PLAYERS SAID THE BLAST KILLED FIVE PEOPLE AND INJURED MORE THAN 1000 TECHNOLOGY STOCKS HELPED DRAG DOWN THE MARKET IT'S THE LEADERSHIP WHAT LEADS ON THE UPSIDE ALSO LEADS ON THE DOWNSIDE SAID LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO THESE ISSUES HOWEVER ARE GOOD BETS TO BOUNCE BACK BECAUSE THERE'S A LOT OF CASH ON THE SIDELINES AND IT'S GOING TO COME IN ON WEAKNESS SAID TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY BUT THE MONEY IS GOING WHERE THE MOMENTUM IS AND THERE'S MORE MOMENTUM IN TECHNOLOGY THAN HEALTH CARE INTEL DROPPED 1 1/4 TO 118 5/8 NOVELL DIPPED 7/8 TO 29 1/8 AND MICROSOFT EASED 1 TO 83 3/4 APPLE COMPUTER WAS ONE OF THE FEW IN THE GROUP TO GAIN UP 3/8 TO 55 BMC SOFTWARE GAVE UP 4 1/2 TO 53 TOPPING THE SESSION'S MOSTACTIVE LIST THE SELLOFF FOLLOWED COMMENTS AT A CONFERENCE WEDNESDAY BY MAX WATSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER THAT THE COMPANY'S INTERNATIONAL REVENUE THIS FISCAL YEAR HAS BEEN WEAKER THAN BMC EXPECTED AT THE BEGINNING OF THE YEAR MR WATSON SAID YESTERDAY THAT HIS REMARKS SHOULDN'T HAVE COME AS A SURPRISE BECAUSE HE WAS REPEATING INDUSTRY TRENDS OF THE PAST SEVERAL MONTHS HEALTHCARE STOCKS ALSO HELPED DRAG DOWN THE NASDAQ MARKET AMGEN A BIOTECHNOLOGY COMPANY LOST 1 7/8 TO 34 7/8 SYNERGEN SLUMPED 1/2 TO 15 3/8 IMMUNEX DROPPED 1 1/2 TO 41 REMARKS BY REP PETE STARKD CALIF PUBLISHED IN THE CONGRESSIONAL RECORD CAUSED HEALTH MAINTENANCE ORGANIZATION STOCKS TO FALL FURTHER MR STARK HEAD OF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE SAID SOME HMOS HAVE INFLATED PRICES PAID TOP EXECUTIVES TOO MUCH AND PRACTICED SELECTIVE INSURANCE TO KEEP ADMINISTRATIVE COSTS DOWN US HEALTHCARE EASED 3 1/2 TO 43 OXFORD HEALTH PLANS PLUNGED 3 1/4 TO 36 AFTER TWO DAYS OF GAINS WE'RE JUST TREADING WATER NOW OR DOING SOME PROFITTAKING SAID GEORGE JENNISON COMANAGER OF OTC TRADING AT WHEAT FIRST BUTCHER & SINGER ANOTHER SECTOR BANK STOCKS WAS MIXED STATE STREET BOSTON WAS DOWN 1/8 TO 46 7/8 FIFTH THIRD BANCORP WAS UNCHANGED AT 53 1/4 NORTHERN TRUST GAINED 1/2 TO 48 1/4 CINCINNATI FINANCIAL GAINED 1/8 TO 62 1/4 SOME RETAILERS GAINED AFTER REPORTING POSITIVE SAMESTORE SALES FOR FEBRUARY BED BATH & BEYOND JUMPED 1/4 TO 33 1/2 SAMESTORE SALES WERE UP 59 IN FEBRUARY PERFUMANIA JUMPED 1/2 TO 7 3/4 IT SAID TOTAL SALES INCREASED 55 FOR FEBRUARY BUT SAMESTORE SALES FELL 094 FOR THE MONTH ONE RETAILER ROSS STORES DIDN'T FARE AS WELL THE STOCK CLOSED OFF 1 1/2 TO 19 7/8 AFTER REPORTING THAT FEBRUARY SAMESTORE SALES FELL 1 QUALCOMM INC MOVED HIGHER AGAIN YESTERDAY AFTER WEDNESDAY'S ANNOUNCEMENT THAT BELL ATLANTIC HAS CHOSEN A DIGITAL TECHNOLOGY DEVELOPED BY THE COMPANY TO UPGRADE ITS CELLULARTELEPHONE NETWORK THE COMMUNICATIONS SYSTEM MAKER'S STOCK ADDED 2 TO 37 3/4 ZYGO'S PRICE ROSE ZYGO GAINED 3/4 TO 6 THE DEVELOPER OF ELECTROOPTICAL MEASURING INSTRUMENTS SAID A DISTRICT COURT RULED IN ITS FAVOR IN A PATENT SUIT ZYGO BROUGHT AGAINST WYKO IN 1988 DAMAGES REMAIN TO BE SET ENHANCED IMAGING TECHNOLOGIES RETREATED 3/4 TO 6 3/4 AFTER REPORTING A FOURTHQUARTER LOSS OF 466000 OR SEVEN CENTS A SHARE AFTER A DEBTRESTRUCTURING CHARGE OF 1041000 THE COMPANY WHICH SELLS SPECIALIZED FILMS AND PROVIDES SERVICES TO CARDIAC CATHETERIZATION LABORATORIES POSTED NET INCOME OF 496000 OR NINE CENTS A SHARE A YEAR EARLIER HEARING DEVICE DEVELOPER RESOUND CORP ENDED ITS FIRST DAY OF TRADING AT 10 7/8 UP 2 3/8 FROM ITS INITIAL PUBLIC OFFERING PRICE OF 850 THE REDWOOD CITY CALIF FIRM WENT PUBLIC IN A 25 MILLIONSHARE OFFERING PRICED LATE WEDNESDAY ARKANSAS BEST FELL 5/8 TO 12 7/8 AFTER ALEX BROWN & SONS LOWERED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM STRONG BUY AND REDUCED EARNINGS ESTIMATES FOR 1993 AND 1994 ALEX BROWN ANALYST JOHN LARKIN SAID HE EXPECTS THE STOCK PRICE TO REMAIN IN A HOLDING PATTERN UNTIL MAY OR JUNE WHEN INVESTORS GET A BETTER IDEA OF THE COMPANY'S SECONDQUARTER RESULTS 9303050047 930305 THE STING SHORT TANGLED TRAIL LEADS TO BOMB SUSPECT TIED TO AN ANGRY SHEIK FBI DEVISES A RUSE TO SNARE MUSLIM EXTREMIST IN BLAST AT NEW YORK'S TOWERS KEY A RENTAL TRUCK REFUND A WALL STREET JOURNAL NEWS ROUNDUP NEW YORK THE TRAIL TO THE SUSPECTS IN THE LETHAL BOMBING AT THE WORLD TRADE CENTER WHILE TANGLED HAS TURNED OUT TO BE SURPRISINGLY SHORTLEADING LAWENFORCEMENT OFFICIALS TO A NEW JERSEY NEIGHBORHOOD THAT IS IN VIEW OF THE DAMAGED SKYSCRAPERS INVESTIGATORS SAY THE MAN ARRESTED YESTERDAY IN THE TERRORIST ATTACK MOHAMMED SALAMEH WAS A FUNDAMENTALIST MUSLIM AFFILIATED WITH A MOSQUE JUST THREE TRAIN STOPS AWAY FROM THE SPOT WHERE THE BOMB EXPLODED ACROSS THE HUDSON RIVER IN JERSEY CITY THAT MOSQUE CALLED THE AS SALAM MOSQUE HAS BEEN THE SOMETIME PULPIT OF AN ANGRY BLIND SHEIK WHO HAS BEEN PREACHING HOLY WAR AGAINST THE GREAT SATAN THE US AND WHO HAS BEEN INVESTIGATED BY THE FEDERAL BUREAU OF INVESTIGATION IN CONNECTION WITH THREE KILLINGS FEDERAL AGENTS ARRESTED THE 26YEAROLD MR SALAMEH AS HE SOUGHT A DEPOSIT REFUND FROM A RYDER SYSTEM INC TRUCKRENTAL AGENCY IN JERSEY CITY THE ARREST WAS MADE WHEN HE SOUGHT THE REFUND ON A VAN HE HAD RENTED IN HIS OWN NAME THE RENTAL PAPERS SHOWED TRACES OF NITRATES A CHEMICAL RESIDUE LEFT BY EXPLOSIVES NITRATES ALSO WERE FOUND AT THE BOMB SCENE IN THE PARKING GARAGE BELOW THE 110STORY TWIN TOWERS OF THE TRADE CENTER THE FBI LATE YESTERDAY WAS CONDUCTING A SERIES OF RAIDS LOOKING FOR EVIDENCE AND POSSIBLY ADDITIONAL SUSPECTS IT WAS BELIEVED THAT THE RAIDS WERE BEING CONDUCTED IN JERSEY CITY AND IN BROOKLYN AN FBI OFFICIAL SAYS INVESTIGATORS ARE STILL IN THE DARK AS TO A MOTIVE FOR LAST FRIDAY'S BOMBING THOUGH HE NOTED THAT IT CAME ON THE SECOND ANNIVERSARY OF THE END OF THE PERSIAN GULF WAR THAT MAY HAVE BEEN MORE THAN COINCIDENTAL HE SAYS BUT THE AS SALAM MOSQUE WHERE MR SALAMEH IS SAID TO WORSHIP IS ONE OF SEVERAL VENUES IN THE NEW YORK AREA WHERE MUSLIMS LATELY HAVE GATHERED TO HEAR SHEIK OMAR ABDELRAHMAN PREACH JIHAD OR HOLY WAR SHEIK OMAR THE SUBJECT OF AN ARTICLE ON THIS PAGE TWO MONTHS AGO IS THE MAN WHO ISSUED THE FATWA OR ISLAMIC SANCTION FOR THE ASSASSINATION OF EGYPT'S PRESIDENT ANWAR SADAT WHEN HE ENTERED THIS COUNTRY IN 1990 ON A TOURIST VISA HE WAS ON THE OFFICIAL US TERRORIST LIST MR SALAMEH THE ACCUSED BOMBER WAS ARRAIGNED IN US FEDERAL COURT IN MANHATTAN LAST NIGHT WEARING A GRAY SWEAT SUIT AND WHITE TENNIS SHOES HE WAS ACCOMPANIED BY A COURTAPPOINTED LAWYER ROBERT PRECHT ACCORDING TO THE CHARGES MR SALAMEH UNLAWFULLY WILLFULLY KNOWINGLY AND WITH MALICE DID AID AND ABET THE DAMAGE AND DESTRUCTION OF BY MEANS OF FIRE AND AN EXPLOSIVE A BUILDING USED IN INTERSTATE AND FOREIGN COMMERCE AND DEATH DID RESULT US DISTRICT JUDGE RICHARD OWEN TOLD THE PACKED COURTROOM THAT THE PENALTY FOR THAT STATUTORY CRIME COULD BE DEATH MR SALAMEH PLEADED NOT GUILTY BAIL WASN'T SET AND HE REMAINS IN CUSTODY A HEARING WILL BE HELD MARCH 18 ACCORDING TO AN AFFIDAVIT PREPARED BY THE FBI AUTHORITIES SEARCHED A JERSEY CITY APARTMENT BELONGING TO A JOSIE HADAS WHOSE TELEPHONE NUMBER MR SALAMEH USED IN RENTING THE VAN THE SEARCH TURNED UP A LETTER ADDRESSED TO MR SALAMEH TOOLS AND WIRING EQUIPMENT AND MANUALS ON THE CIRCUITRY OF BOMBS A POLICE EXPERT EXAMINED THAT EVIDENCE AND SAID IT SHOWED A BOMB MAKER LIVED THERE THE FBI ALSO SAID A BOMBSNIFFING DOG HAD BEEN TAKEN TO THE APARTMENT AND RESPONDED POSITIVELY TO A CLOSET SPACE INDICATING THAT EXPLOSIVES PROBABLY HAD BEEN STORED THERE INDIVIDUALS FAMILIAR WITH THE CASE SAY THAT EARLIER IN THE DAY MR SALAMEH'S CLOTHING HAD BEEN TESTED FOR CHEMICALS THAT COULD BE FOUND IN BOMBS THE RESULTS COULDN'T BE LEARNED GILMORE CHILDERS AN ASSISTANT US ATTORNEY WHO IS THE PROSECUTOR IN THE CASE CALLED THE BOMBING THE SINGLE MOST DESTRUCTIVE ACT OF TERRORISM EVER COMMITTED ON AMERICAN SOIL THE BOMBING KILLED FIVE PEOPLE AND INJURED MORE THAN 1000 THE EXPLOSION TORE THROUGH THREE FLOORS OF THE UNDERGROUND GARAGE AND CREATED A HOLE NEARLY 200FEET WIDE FBI OFFICIALS ESTIMATED THE AMOUNT OF EXPLOSIVE MATERIAL NEEDED FOR THE BLAST WAS BETWEEN SEVERAL HUNDRED POUNDS AND 1500 POUNDS EARLY ON INVESTIGATORS DETERMINED THAT THE INSTRUMENT OF TERROR WAS A CAR BOMB PROBABLY MADE OF AMMONIUM NITRATE A CHEMICAL WHICH IS USED IN MOST TYPES OF EXPLOSIVES THEY STARTED LOOKING AT THE POSSIBILITY THAT A VAN OR A COVERED PICKUP TRUCK CARRIED THE EXPLOSIVES BECAUSE THE AMOUNT NEEDED TO CAUSE THE DEGREE OF DAMAGE IN THE TRADE CENTER WAS TOO GREAT TO HAVE BEEN CARRIED IN ONE CAR INVESTIGATORS RETRIEVED ENOUGH BITS OF A VAN FROM THE DEBRIS IN THE WORLD TRADE CENTER TO DISCERN HALF OF ITS VIN OR VEHICLE IDENTIFICATION NUMBER THEY WERE ABLE TO RECONSTRUCT THE ENTIRE NUMBER AND TRACE THE VEHICLE TO AN ALABAMAREGISTERED VEHICLE WHICH TURNED OUT TO BE A RYDER VAN THAT HAD BEEN AT THE JERSEY CITY RENTAL OUTLET IN JERSEY CITY PATRICK GALASSO OWNER OF DIB LEASING WHICH RUNS THE RYDER OUTLET SAYS MR SALAMEH CAME IN WITH ANOTHER MAN THE TUESDAY BEFORE THE BOMBING ASKING TO RENT A VAN IN THE CHEAPEST WAY POSSIBLE HE SAYS BOTH MEN WERE IN THEIR LATE 20S 5FOOT6 OR 5FOOT7 WITH FULL BEARDS DARK SKIN AND DARK HAIR HE SAYS MR SALAMEH SHOWED A NEW YORK DRIVER'S LICENSE AND PUT DOWN 400 CASH TO RENT A FORD ECONOLINE VAN FOR A WEEK THE VAN CAN CARRY 2000 POUNDS MR GALASSO SAYS ADDING HE DIDN'T SAY WHAT IT WAS FOR MR SALAMEH CAME BACK IN FRIDAY AFTERNOON DRIVING A RENTED CHEVROLET CORSICA AND SAID THE VAN HAD BEEN STOLEN WHILE HE WAS SHOPPING AT THE SHOP RITE AT A MALL MR GALASSO SAYS WHEN MR SALAMEH ASKED FOR HIS DEPOSIT BACK MR GALASSO SAID HE TOLD HIM HE NEEDED A POLICE REPORT MR SALAMEH RETURNED MONDAY WANTING TO KNOW IF HE COULD CLOSE THE CONTRACT AND WAS TOLD AGAIN THAT HE NEEDED A POLICE REPORT MR GALASSO SAYS HE SAYS THE FBI GOT IN TOUCH WITH HIM WEDNESDAY AND ASKED HIM WHO HAD RENTED THE TRUCK MR GALASSO SAYS HE LOOKED THE NUMBER UP ON HIS COMPUTER AND TOLD THE FBI ABOUT MR SALAMEH AND THAT MR SALAMEH HAD SAID HE WOULD PROBABLY BE BACK IN THE NEXT DAY TO GET HIS MONEY BACK THE FBI AGENTS CAME INTO THE OFFICE BEFORE 8 AM YESTERDAY MORNING MR GALASSO SAYS MR SALAMEH CALLED AT 9 AM AND SAID HE STILL DIDN'T HAVE THE POLICE REPORT I SAID IT REALLY DOESN'T MATTER WE HAVE THE MONEY COME IN' MR SALAMEH CAME IN 30 MINUTES LATER THIS TIME ON FOOT ONE FBI AGENT POSED AS A RYDER REPRESENTATIVE WHILE ANOTHER WATCHED FROM A NEARBY OFFICE MR GALASSO SAID MR SALAMEH TOLD THE AGENT AT THE DESK THE STORY ABOUT THE VAN BEING STOLEN APPARENTLY HE ACTUALLY HAD FILED A REPORT OF A THEFT WITH THE POLICE FOR WHILE MR SALAMEH SPOKE WITH THE FBI AGENT TWO JERSEY CITY POLICE OFFICERS WALKED UP TO THE OFFICE SEEKING A COPY OF THE RENTAL AGREEMENT TO COMPLETE THE POLICE REPORT MR GALASSO SAYS ADDING THAT HE RUSHED OUTSIDE TO SHOO THEM AWAY MR SALAMEH LEFT BUT WAS ALMOST IMMEDIATELY ARRESTED BY EIGHT TO 10 FBI AGENTS HIDING OUTSIDE MR GALASSO SAYS HE REALLY CAME BACK FOR THE REFUND MR GALASSO SAYS IT MAKES ABSOLUTELY NO SENSE AT A NEWS CONFERENCE IN THE FBI HEADQUARTERS ACTING ATTORNEY GENERAL STUART GERSON SUGGESTED THAT MR SALAMEH WAS NOT ACTING ALONE SAYING WE'RE INTERESTED IN MORE THAN THE SINGLE INDIVIDUAL WHO HAS BEEN APPREHENDED TWO HOURS LATER GOVERNMENT OFFICIALS MADE A SECOND ARREST OF AN UNIDENTIFIED MAN CHARGED WITH INTERFERING WITH LAWENFORCEMENT OFFICERS INVESTIGATING THE CASE HE IS SCHEDULED TO BE ARRAIGNED TODAY ANNOUNCING THE FIRST ARREST FBI DIRECTOR WILLIAM SESSIONS SAID THE INVESTIGATION IS CONTINUING AND WILL CONTINUE FOR MANY MONTHS AHEAD MR SALAMEH WHO WAS BORN IN JORDAN AND HAS LIVED IN THE US FOR FIVE YEARS WAS KNOWN TO FBI COUNTERTERRORISM OFFICIALS BUT FBI OFFICIALS WOULDN'T SAY WHETHER HE HAD ANY OVERSEAS CONTACTS THE ARRESTS SHOOK THE LARGE ISLAMIC COMMUNITIES IN JERSEY CITY AND BROOKLYN WHERE SHEIK OMAR'S FIERY PREACHING HAS CAUSED OPEN RIFTS IN THE PAST TWO YEARS SHEIK OMAR AN EGYPTIAN DID NOT ANSWER HIS PHONE IN JERSEY CITY YESTERDAY AN OFFICIAL WITH THE STATE DEPARTMENT'S ANTITERRORISM DIVISION SAYS THE SHEIK IS STILL IN THE US AND HASN'T BEEN ARRESTED BUT HE WASN'T SURE WHERE HE IS THIS OFFICIAL ALSO SAYS US AND EGYPTIAN INVESTIGATORS ARE EXAMINING A POSSIBLE CONNECTION BETWEEN THE NEW YORK BOMB AND A BOMB IN A CAIRO CAFE ON THE SAME DAY THAT KILLED FOUR PEOPLE THE EGYPTIANS HAVE BEEN ATTACKING TOURIST BUSES BUT THAT WAS THE FIRST BOMBING LIKE THIS SAYS THIS OFFICIAL SHEIK OMAR EARNED CREDENTIALS AS AN IMAM AND ISLAMIC SCHOLAR AT THE PRESTIGIOUS ALAZHAR UNIVERSITY IN CAIRO WHERE HE DEVELOPED A DEVOTED FOLLOWING OF STUDENTS BUT HIS WIDER FAME HAS ARISEN IN EGYPT'S UBIQUITOUS SLUMS WHERE HIS HARSH ANTIWESTERN READING OF SCRIPTURES HAS APPEALED TO THE LEGIONS OF YOUNG AND FRUSTRATED UNEMPLOYED PEOPLE BLINDED SINCE CHILDHOOD BY DIABETES THE 54YEAROLD CLERIC CAME TO THE US IN 1990 EVEN THOUGH HE WAS ON THE TERRORIST LIST THE STATE DEPARTMENT SAYS THE AMERICAN EMBASSY IN KHARTOUM THE CAPITAL OF SUDAN MADE A MISTAKE WHEN IT ISSUED SHEIK OMAR A TOURIST VISA HIS GREEN CARD PERMITTING HIM TO STAY AND WORK AS A PREACHER WAS REVOKED IN MARCH OF LAST YEAR ON JAN 20 THE SHEIK APPEARED AT A FEDERAL HEARING TO REQUEST POLITICAL ASYLUM AND TO ANSWER US CHARGES THAT HE LIED ON HIS VISA APPLICATION THAT HE IS A POLYGAMIST AND THAT HE HAS COMMITTED UNSPECIFIED CRIMES OF MORAL TURPITUDE THE CASE REMAINS PENDING BEFORE THE IMMIGRATION JUDGE IN DECEMBER PEOPLE CLOSE TO THE FBI CONFIRMED THAT SHEIK OMAR HAS BEEN INVESTIGATED IN CONNECTION WITH THREE KILLINGS INCLUDING THE 1990 SLAYING OF THE RADICAL RABBI MEIR KAHANE IN NONE OF THE CASES IS THE SHEIK SUSPECTED OF KILLING ANYONE BUT FBI AGENTS HAVE BEEN LOOKING INTO WHETHER HE GAVE RELIGIOUS APPROVAL FOR THE BLOODSHED AND PROBABLY WILL EXAMINE WHETHER A SIMILAR DECREE WAS MADE BEFORE THE TRADE CENTER BOMBING IN DECEMBER SHEIK OMAR TOLD THE WALL STREET JOURNAL IT IS THE DUTY OF ALL GOOD MUSLIMS TO REBEL AGAINST TYRANTS AND ADDED THAT HE WOULD LIKE TO SHOW ALL AMERICANS THAT THEY'LL NEVER BE HAPPY IF THEY DON'T FOLLOW ISLAM SHEIK OMAR HAS DELIVERED HIS MESSAGE OF HOLY WAR AT SEVERAL MOSQUES IN THE NEW YORK AREA LEADERS OF THE AS SALAM MOSQUE IN JERSEY CITY AND AT THE LARGE FAROUK MOSQUE IN BROOKLYN LAST YEAR TOLD SHEIK OMAR HE WAS NO LONGER WELCOME BECAUSE OF HIS INCENDIARY POLITICS A MAN WHO ANSWERED THE PHONE AT THE AL SALAM MOSQUE YESTERDAY WHO WOULD IDENTIFY HIMSELF ONLY AS HASSAN SAID HE HADN'T SEEN THE SHEIK AT THE MOSQUE FOR SEVERAL MONTHS HE SAID A CROWD WAS GATHERING OUTSIDE THE DOOR I DON'T KNOW IF THEY'RE FBI OUTSIDE OR WHAT BUT PEOPLE ARE TENSE IN HERE HE SAID A MEMBER OF ABU BAKR ANOTHER MOSQUE IN BROOKLYN SAID SHEIK OMAR DIDN'T SHOW UP SUNDAY EVENING FOR HIS REGULAR PRAYER MEETING INSTEAD HE MADE A SURPRISE APPEARANCE THE PREVIOUS THURSDAY NIGHT ANGERING THE MOSQUE'S REGULAR CLERGYMAN WHO WAS SUPPOSED TO GIVE THAT EVENING'S SPECIAL SERMON FOR THE HOLY MONTH OF RAMADAN THIS ABU BAKR MEMBER SAYS HE WAS TOLD BY PEOPLE CLOSE TO SHEIK OMAR THAT THE SHEIK HAD COME ON THURSDAY BECAUSE HE PLANNED TO TRAVEL OVER THE WEEKEND A US COUNTERTERRORISM OFFICIAL SAID SHEIK OMAR HAS BEEN SUCCESSFUL IN RECRUITING AMERICAN FOLLOWERS SINCE COMING TO THE US AT MOSQUES IN NEW YORK AND NEW JERSEY WHERE HE HAS PREACHED HIS MOST DEVOTED SUPPORTERS STILL APPEAR TO BE ARABS HOWEVER AT THE ABU BAKR MOSQUE OLDER MEMBERS HAVE SQUARED OFF AGAINST YOUNGER SUPPORTERS OF THE SHEIK OVER WHETHER THE CONTRACT OF THE MOSQUE'S MOREMODERATE REGULAR IMAM SHOULD BE EXTENDED SOME WHO FAVOR KEEPING THE CLERGYMAN SAY THEY HAVE BEEN THREATENED BY FIREBRANDS WHO SUPPORT SHEIK OMAR AND THEY SAY THEY HAVE COMPLAINED TO THE POLICE AND FBI THE SPEED WITH WHICH A SUSPECT WAS FOUND AND ARRESTED LEFT MANY PEOPLE IMPRESSED NOT LEAST PRESIDENT CLINTON I THINK THAT PEOPLE SHOULD BE VERY REASSURED BY THE INCREDIBLY RAPID WORK DONE BY THE LAWENFORCEMENT OFFICIALS INVOLVED HE SAID IT IS VERY IMPRESSIVE ALL RESOURCES WERE PUT INTO THIS FROM THE MOMENT THE EXPLOSION OCCURRED AND I THINK THEY DID A REMARKABLE JOB 9303050046 930305 KNAPP CHARGED WITH FRAUD AT WESTERN S&L EXECUTIVE RAN A BIG THRIFT SEIZED BY US IN 1984 THEN PLOTTED TAKEOVERS BY STEPHEN J SANSWEET STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CHARLES W KNAPP THE ONCE HIGHFLYING SAVINGS AND LOAN MAVERICK WHO SET THE PATTERN FOR MANY OF THE INDUSTRY'S MOST NOTORIOUS PRACTICES WAS INDICTED YESTERDAY ALONG WITH A FINANCIAL ADVISER AND AN ACCOUNTANT FOR ALLEGEDLY DEFRAUDING AN ARIZONA THRIFT WHEN IT LOANED HIM 15 MILLION MR KNAPP BECAME THE MODEL FOR MANY OF THE GUNSLINGING THRIFT EXECUTIVES OF THE 1980S BEFORE HIS AMERICAN SAVINGS & LOAN ASSOCIATION WAS SEIZED BY THE GOVERNMENT IN 1984 AND LATER NEEDED A 2 BILLION GOVERNMENT BAILOUT HE THEN TURNED TO THE TAKEOVER GAME MR KNAPP CLAIMED THAT HIS CLOSELY HELD TRAFALGAR HOLDINGS LTD AND RELATED COMPANIES REPRESENTED INVESTORS WHO HAD COMMITTED MORE THAN 6 BILLION TO HELP CORPORATE RAIDERS SNATCH THEIR PREY BUT IN A FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL IN 1989 TRAFALGAR WAS DEPICTED AS BEING LARGELY SMOKE AND MIRRORS RAKING IN ADVANCE FEES FOR LOANS THAT MR KNAPP NEVER MADE BECAUSE HE DIDN'T HAVE THE FUNDS DESPERATELY SHORT OF MONEY MR KNAPP USED DUBIOUS ASSETS TO SUPPORT A BALANCE SHEET THAT WON HIM AN UNSECURED 15 MILLION LOAN IN 1988 FROM TROUBLED WESTERN SAVINGS & LOAN ASSOCIATION OF PHOENIX WHICH LATER BECAME INSOLVENT AND WAS TAKEN OVER BY THE GOVERNMENT ACCORDING TO THE ARTICLE IT IS THAT LOAN MADE TO TRAFALGAR CAPITAL CORP THAT IS THE BASIS OF THE INDICTMENT IN FEDERAL COURT HERE MR KNAPP HAS BEEN UNDER INVESTIGATION SINCE EARLY 1990 WHEN HIS HOME AND OFFICE WERE RAIDED AND DOCUMENTS WERE SEIZED BY FEDERAL BUREAU OF INVESTIGATION AGENTS THE INDICTMENT WHICH ALSO NAMES HIS FINANCIAL ADVISER ANTHONY C SARNO AND HIS OUTSIDE ACCOUNTANT JOSEPH V NASH WAS UNSEALED LATE YESTERDAY MICHAEL D NASATIR AN ATTORNEY REPRESENTING MR KNAPP SAID HIS CLIENT INTENDS TO PLEAD NOT GUILTY AND EXPECTS TO BE FULLY VINDICATED AFTER ALL THE EVIDENCE COMES IN MR KNAPP WHO SURRENDERED TO AUTHORITIES WAS RELEASED ON 380000 BAIL ATTORNEYS FOR MR SARNO AND FOR MR NASH WHO IS ALREADY IN CUSTODY IN ANOTHER CASE DIDN'T RETURN CALLS SEEKING COMMENT THE MAIN CHARGES IN THE INDICTMENT INCLUDE CONSPIRACY TO KNOWINGLY MAKE FALSE STATEMENTS AND TO OVERVALUE THE ASSETS OF TRAFALGAR CAPITAL A MORTGAGEBROKERAGE FIRM INTERSTATE TRANSPORTATION OF MONEY TAKEN BY FRAUD AND MONEY LAUNDERING THE EIGHTCOUNT INDICTMENT IS REPLETE WITH ALLEGED EXAMPLES OF PHANTOM FINANCIAL ASSETS CLAIMED BY TRAFALGAR CAPITAL DOCUMENTS THAT WERE BACKDATED OR REVISED NUMEROUS TIMES AND CLAIMS THAT CERTAIN PENDING DEALS HAD BEEN COMPLETED THE LARGEST CLAIMED ASSET AN ALLEGED 71 MILLION INTEREST IN THE CIRCLE C RANCH RESIDENTIAL DEVELOPMENT NEAR AUSTIN TEXAS HAD BEEN PAID FOR WITH A 1 MILLION TRAFALGAR CAPITAL CHECK WRITTEN ON A BANK ACCOUNT THEN CONTAINING ONLY 800 THE INDICTMENT STATES THE INDICTMENT CHARGES THAT MR KNAPP AND MR SARNO WHO IT SAYS WAS GIVEN 250000 OF THE LOAN PROCEEDS KNEW THAT THE FINANCIAL INFORMATION PRESENTED TO WESTERN SAVINGS MATERIALLY MISREPRESENTED THE TRUE CONDITIONS AT TRAFALGAR CAPITAL MR NASH WHO RECEIVED 60000 FOR HIS WORK NEVER PERFORMED ALL OF THE NECESSARY AUDIT WORK YET STILL ISSUED AN AUDITED FINANCIAL STATEMENT THAT HE SAID ACCURATELY REFLECTED TRAFALGAR'S FINANCIAL CONDITION THE GOVERNMENT CHARGES SOME OF TRAFALGAR'S CLAIMED ASSETS WERE ACTUALLY COMPANIES PARTLY OWNED BY MR NASH THE INDICTMENT STATES THE GOVERNMENT GIVES JUST A TANTALIZING HINT OF HOW SOME OF THE 15 MILLION IN LOAN PROCEEDS WERE SPENT IT MENTIONS A 41120 DIAMOND EMERALD AND RUBY RING FROM NEIMAN MARCUS AND A 37000 NATURAL RUSSIAN SABLE COAT MR KNAPP ALSO IS ONE OF A NUMBER OF DEFENDANTS CHARGED WITH RACKETEERING AND FRAUD IN A CIVIL SUIT FILED IN FEDERAL COURT IN PHOENIX LAST JUNE BY THE RESOLUTION TRUST CORP THE FEDERAL AGENCY FORMED TO DISPOSE OF FAILED THRIFTS' ASSETS WESTERN SAVINGS ONCE THE SECONDLARGEST THRIFT IN ARIZONA WAS DECLARED INSOLVENT IN 1989 AND ITS CLEANUP IS EXPECTED TO COST 17 BILLION THE RTC IS SEEKING 197 MILLION FROM MR KNAPP AND MILLIONS MORE FROM THREE MEMBERS OF THE DRIGGS FAMILY WHO CONTROLLED THE STOCK OF THE THRIFT AND HELD TOP EXECUTIVE POSITIONS THE RTC SUIT UNLIKE THE FEDERAL INDICTMENT CHARGED THAT MR KNAPP WAS PART OF A SCHEME BY THOSE WHO CONTROLLED WESTERN SAVINGS TO DEFRAUD THE THRIFT IT ALLEGED THAT PART OF THE LOAN WAS FUNNELLED BACK TO WESTERN TO HELP IT UNLOAD SEVERAL PROPERTIES AND RECORD A FICTIOUS PROFIT SOME OF THE FUNDS ALLEGEDLY WERE TO BE USED BY MR KNAPP TO HELP LAUNCH A HOSTILE TAKEOVER OF SOUTHMARK CORP WHOSE THENDECLINING STOCK AND JUNK BONDS WERE HELD BY THE THRIFT THE RTC CHARGED A YEAR AGO MR NASH WAS FOUND GUILTY ON 15 UNRELATED COUNTS OF MAKING FALSE STATEMENTS AND DEFRAUDING FOUR BANKS OF 900000 HE WAS SENTENCED TO 11 YEARS IN PRISON MR KNAPP WAS NEVER CRIMINALLY CHARGED IN CONNECTION WITH HIS TENURE AT AMERICAN SAVINGS THEN THE COUNTRY'S LARGEST THRIFT AND HE HAS DENIED ANY WRONGDOING BUT THREE YEARS AFTER HE WAS FORCED OUT THE THRIFT'S PARENT COMPANY SETTLED A SECURITIES AND EXCHANGE COMMISSION LAWSUIT CHARGING IT WITH VARIOUS ACCOUNTING AND LENDING ABUSES THAT INFLATED EARNINGS MAINLY IN THE KNAPP ERA MR KNAPP'S INITIAL PLANS FOR TRAFALGAR WERE AMBITIOUS IN ADDITION TO HIS CLAIMED BUT NEVERDEMONSTRATED ABILITY TO FINANCE BILLIONDOLLAR DEALS HE STARTED A SECURITIES FIRM A MORTGAGEBROKERAGE OPERATION AND AN INSURANCE COMPANY ALL OF WHICH FAILED MR KNAPP AND HIS WIFE ACTRESS AND SELFSTYLED CORPORATE RAIDERETTE LOIS HAMILTON FILED FOR PERSONAL BANKRUPTCY PROTECTION LAST SEPTEMBER THE FILING LISTS ASSETS AT 43 MILLION AND DEBTS AT 22 MILLION BUT 25 MILLION OF THE ASSETS CONSIST OF A CLAIM AGAINST OFFICERS AND DIRECTORS OF WESTERN SAVINGS IN ADDITION TO THE RTC CLAIM THE FEDERAL DEPOSIT INSURANCE CORP WON A 736000 JUDGMENT AGAINST MR KNAPP FOR A LOAN MADE TO ONE OF HIS COMPANIES ATLANTIC FUNDING LTD BY FIRST PACIFIC BANK WHICH FAILED IN 1990 IN RECENT YEARS MR KNAPP HAS BEEN INVOLVED IN HELPING SET UP SEVERAL OFFSHORE INSURANCE COMPANIES INCLUDING ONE THAT INSURES BLOOD BANKS INSURANCE REGULATORS SAY HIS MAIN HOLDING COMPANY HAS BEEN ATLANTIC MARITIME GROUP THEY SAY 9303050045 930305 HEARD ON THE STREET SALOMON INC INVESTORS STAND BY THEIR STOCK DESPITE FIRM'S OPERATING LOSS FOR TWO MONTHS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC SEEMS TO HAVE BUILT UP ENOUGH CREDIBILITY WITH INVESTORS THAT THEY DON'T ALL BAIL OUT OF THE STOCK WHEN THE BIG SECURITIES TRADING FIRM STUMBLES YESTERDAY SALOMON STUNNED ANALYSTS BY DISCLOSING THAT IT INCURRED A PRETAX OPERATING LOSS OF ABOUT 250 MILLION FOR JANUARY AND FEBRUARY ALONE MOSTLY FROM TRADING FOR ITS OWN ACCOUNT SALOMON'S SHARES FELL 48 AND NOW TRADE 57 BELOW THEIR 52WEEK HIGH OF 41 7/8 IF THE DISCLOSURE HAD COME ON THE HEELS OF SALOMON'S 1991 TREASURY AUCTION BIDDING SCANDAL THE TRADING LOSS WOULD HAVE SOCKED THE STOCK MUCH HARDER ANALYSTS SAY BUT YESTERDAY SOME BIG INSTITUTIONAL INVESTORS SHRUGGED OFF THE LOSSES THEY SAY SALOMON COULD EASILY REAP TRADING PROFITS JUST AS BIG IN THE NEXT TWO MONTHS MANY BIG FANS OF THE STOCK ARE HOLDING TIGHT FOR NOW THE SHARES ENDED YESTERDAY AT 39 1/2 DOWN 2 BUT UP FROM THE DAY'S LOW OF 38 7/8 THAT'S WHAT YOU'RE SUBJECT TO WHEN YOU OWN A PROPRIETARYTRADING FIRM THEY'RE NOT MAKING WIDGETS SAYS MICHAEL PRICE CHAIRMAN OF THE 5 BILLION MUTUAL SERIES FUND GROUP WHICH OWNS NEARLY THREE MILLION SALOMON SHARES MR PRICE A BIG BUYER OF SALOMON STOCK IN RECENT WEEKS SAYS HE WILL SNAP UP MORE IF THE STOCK DIPS FURTHER BUT HE'S EXPECTING A QUICK BOUNCE BACK SAYS ERROL RUDMAN OF RUDMAN MANAGEMENT CO ANOTHER BIG SALOMON BACKER PEOPLE WHO READ INTO THE TRADING LOSS THAT SALOMON'S PRIMARY EARNINGS TREND IS IMPAIRED IN SOME WAY ARE BEING MISLED STILL THE SHARP LOSS IS A FRESH REMINDER THAT SALOMON'S STOCK IS SUBJECT TO THE WILDEST GYRATIONS AMONG THE BROKERAGE STOCKS INDEED BUYING SALOMON IS LESS A BROKERAGE PLAY THAN A PLAY ON ITS TRADING PROWESS AND THAT WORRIES SOME ANALYSTS THE LOSS SUGGESTS THAT SALOMON MORE THAN EVER IS SWINGING FOR THE FENCES SAYS LAWRENCE ECKENFELDER A PRUDENTIAL SECURITIES ANALYST I DON'T UNDERSTAND HOW PEOPLE ARE IN THERE BUYING IT RIGHT NOW SALOMON TOOK THE HIT PARTLY FROM TRADING SECURITIES BACKED BY HOME MORTGAGES TRADERS SAY SURGING HOMEMORTGAGE REFINANCINGS HAVE WHACKED THE VALUE OF CERTAIN MORTGAGEBACKED SECURITIES TRADERS BELIEVE SALOMON HAD A BIG EXPOSURE TO HYBRID MORTGAGE SECURITIES BACKED BY THE INTEREST PORTION BUT NOT THE PRINCIPAL FROM A POOL OF MORTGAGES AS HOMEOWNERS RUSHED TO REFINANCE AND PREPAY THEIR OLD MORTGAGES WITH LOWERRATE LOANS THE VALUE OF THE STRIPS ERODED BECAUSE THERE IS LESS INTEREST AVAILABLE FOR HOLDERS TRADERS SAY SALOMON ALSO MADE A BIG BET THAT BOND YIELDS WOULD RISE INSTEAD THE 30YEAR TREASURY BOND YIELD HAS PLUNGED TO 673 SALOMON DECLINED TO SPECIFY WHAT LED TO THE TRADING PLUNGE PROPRIETARY TRADING ACTIVITIES CAUSE QUARTERTOQUARTER EARNINGS TO BE HIGHLY VOLATILE THE FIRM SAID IN A BIT OF AN UNDERSTATEMENT PROPRIETARY TRADING USING THE FIRM'S OWN MONEY IS A BIG PROFIT ENGINE AT SALOMON LAST YEAR THE FIRM'S REVENUE FROM SUCH PRINCIPAL TRANSACTIONS WAS NEARLY 25 BILLION HELPING SALOMON TO POST NET INCOME OF 550 MILLION SALOMON'S TRADING LOSSES DON'T INCLUDE AN EXPECTED PRETAX CHARGE OF ABOUT 65 MILLION FOR THE QUARTER FROM AN ACCOUNTING CHANGE FOR POSTRETIREMENT BENEFITS AND SALOMON SAID ITS INVESTMENT IN A RUSSIANAMERICAN OIL PRODUCTION VENTURE WHICH HAS A CARRYING VALUE OF 86 MILLION IS SUBJECT TO GREAT UNCERTAINTY BECAUSE OF THE IMPOSITION OF AND PENALTIES FROM A RUSSIAN OILEXPORT TAX FAILURE TO RESOLVE THESE ISSUES THREATENS THE ECONOMIC VIABILITY OF THE OIL PROJECT SAID DONALD HOWARD SALOMON'S CHIEF FINANCIAL OFFICER NO SWEAT SAYS FRANK CASTLE PORTFOLIO MANAGER FOR FEELEY & WILLCOX A NEW YORK INVESTMENT FIRM MR CASTLE WHO RECENTLY BOUGHT SALOMON SHARES AT 40 SAYS SALOMON'S BOND FRANCHISE REMAINS STRONG EARNINGS ARE GOING TO BE LUMPY HE SAYS BUT THERE AREN'T ENOUGH GOOD INVESTMENTS IN THIS MARKET TO MAKE ME WANT TO SELL SALOMON AT THIS LEVEL GOING GONE T ROWE PRICE ASSOCIATES' SMALLCAP VALUE FUND IS THE LATEST SMALLSTOCK FUND TO BAR THE DOOR STARTING TODAY THE FUND AFTER A TWOYEAR GAIN OF 622 THROUGH DEC 31 WILL CLOSE TO MOST NEW MONEY EXCEPT FROM EXISTING HOLDERS AND EMPLOYERSPONSORED PLANS THE FIRM SAID A TORRENT OF INFLOWS THREATENED TO OVERWHELM FUND MANAGER PRESTON ATHEY THE FUND HOLDS VERY SMALL STOCKS THAT APPEAR CHEAP COMPARED WITH EARNINGS OR ASSETS LAST YEAR IT QUINTUPLED IN SIZE AND IN THE FIRST TWO MONTHS OF 1993 ASSETS GREW 100 MILLION TO 380 MILLION MR ATHEY EMPHASIZED THAT THE CLOSING DOESN'T MEAN HE THINKS SMALL STOCKS ARE OVERPRICED I STILL THINK IT'S A GREAT AREA HE SAID IN MARCH 1972 T ROWE PRICE NEW HORIZONS FUND CLOSED TO INVESTORS BECAUSE ITS MANAGEMENT THOUGHT THAT SMALL STOCKS WERE TOO EXPENSIVE T ROWE PRICE ISN'T CLOSING TWO OTHER SMALLSTOCK FUNDS NEW HORIZONS AND OVERTHECOUNTER SECURITIES WHICH INVEST IN SLIGHTLY LARGER STOCKS WITH RAPID EARNINGS GROWTH 9303050044 930305 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES SURGED AND INTEREST RATES FELL TO RECORD LOWS AS MORE INVESTORS BECAME CONVINCED THAT LOWER INFLATION IS HERE TO STAY THE TREASURY'S BENCHMARK 30YEAR BOND ROSE NEARLY 3/4 POINT OR 750 FOR A BOND WITH 1000 FACE VALUE AS ITS YIELD TUMBLED TO 673 MANY INVESTORS NOW BELIEVE THAT A 65 YIELD ON THE 30YEAR TREASURY BOND IS POSSIBLE STOCK MARKET INDEXES FELL WITH THE DOW JONES INDUSTRIALS SLIPPING 513 POINTS TO 339891 THE DOLLAR EASED AGAINST THE MARK AFTER GERMANY'S CENTRAL BANK FAILED TO CUT RATES DEMOCRATS ARE SEEKING ADDITIONAL SAVINGS OF 40 BILLION TO 50 BILLION OVER THE NEXT FIVE YEARS TO SOFTEN CRITICISM THAT CLINTON'S ECONOMIC PLAN DOESN'T MEET ITS DEFICITREDUCTION TARGETS CHARLES KNAPP WAS INDICTED ALONG WITH A FINANCIAL ADVISER AND AN ACCOUNTANT FOR ALLEGEDLY DEFRAUDING A THRIFT INSTITUTION IN ARIZONA RETAIL SALES ROSE A SLIM 1 IN FEBRUARY AT STORES OPEN AT LEAST ONE YEAR ENDING A STRING OF STRONG GAINS ANALYSTS BLAMED INCLEMENT WEATHER AND WARINESS ABOUT CLINTON'S PROPOSALS CHRYSLER HAS PLEDGED TO RESTRAIN PRICE INCREASES ON ITS MINIVANS IF THE US IMPOSES A 25 TARIFF ON JAPANESE MINIVANS THE OFFER IS THE LATEST SALVO IN DETROIT'S BID FOR TRADE SANCTIONS THE SEC APPEARS TO BE MOVING TOWARD SUING MERRILL LYNCH IN CONNECTION WITH ITS BOND DEALINGS WITH A NOWINSOLVENT FLORIDA INSURANCE COMPANY NEW FACTORY ORDERS SLIPPED 13 IN JANUARY SUGGESTING MORE SUBDUED ECONOMIC GROWTH FIRSTTIME CLAIMS FOR UNEMPLOYMENT BENEFITS CLIMBED 26000 IN THE WEEK ENDED FEB 20 BARCLAYS PLC POSTED A 3509 MILLION PRETAX LOSS FOR 1992 THE FIRST IN THE 97YEAR HISTORY OF THE BRITISH BANK AND SLASHED ITS DIVIDEND BY 28 CS FIRST BOSTON REPLACED THE HEAD OF ITS EUROPEAN OPERATIONS WITH DAVID MULFORD A FORMER TREASURY DEPARTMENT INTERNATIONAL AFFAIRS EXPERT A CALIFORNIA GRAND JURY INDICTED TWO OFFICERS OF SOFTWARE MAKER SYMANTEC ALLEGING THEY STOLE TRADE SECRETS FROM RIVAL BORLAND INTERNATIONAL SALOMON INC SAID IT HAD A PRETAX OPERATING LOSS OF ABOUT 250 MILLION FOR JANUARY AND FEBRUARY MOSTLY DUE TO TRADING FOR ITS OWN ACCOUNT GAP INC'S EARNINGS SKIDDED 22 IN THE FISCAL FOURTH QUARTER FUELING CONCERN THAT GAP'S LAIDBACK PRACTICAL CLOTHING IS LOSING APPEAL AS CONSUMERS LOOK FOR MORE FASHIONABLE APPAREL PHILIPS ELECTRONICS REPORTED A 1992 LOSS OF 4858 MILLION AND SAID IT WILL CUT UP TO 15000 MORE JOBS THIS YEAR THE FIRM ALSO PLANS SPENDING CUTS CIE DES MACHINES BULL SAID THAT ITS LOSS WIDENED 43 LAST YEAR AND THAT FRANCE HAS PUMPED MORE CASH INTO THE COMPUTER MAKER TO HELP SUSTAIN IT BONDS LEHMAN BROTHERS TREASURY INDEX 509733 UP 2979 COMMODITIES OIL 2107 A BARREL UP 59 CENTS DOW JONES FUTURES INDEX 12666 UP 063 SPOT INDEX 12463 UP 008 DOLLAR 11678 YEN UP 013 16385 MARKS OFF 00073 9303050043 930305 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN PRETAX PROFITS OF MAJOR JAPANESE COMPANIES FOR THE YEAR ENDING MARCH 31 WILL TUMBLE HARDER THAN PROJECTED REFLECTING A LINGERING ECONOMIC SLUMP THE DAIWA INSTITUTE OF RESEARCH SAID THE THINK TANK AN AFFILIATE OF DAIWA SECURITIES CO SAID THE TREND WILL CONTINUE IN THE COMING FISCAL YEAR EXTENDING THE DRAG ON JAPANESE CORPORATE EARNINGS TO FOUR YEARS IN A ROW COMBINED PRETAX PROFITS OF 540 COMPANIES IN THE CURRENT FISCAL YEAR WILL SHRINK 283 SAID THE INSTITUTE WHICH LAST DECEMBER PROJECTED A 269 DROP EARNINGS ARE EXPECTED TO PLUMMET 36 FOR MANUFACTURERS AND TO SLIDE 16 FOR OTHER FIRMS SEPARATELY 3477 COMPANIES SURVEYED BY THE INDUSTRIAL BANK OF JAPAN EXPECT TO CUT CAPITAL SPENDING 66 IN THE COMING FISCAL YEAR FOR THE SECOND ANNUAL DECLINE IN A ROW AND THE BIGGEST DROP SINCE THE POLL WAS BEGUN IN 1969 CURRENTYEAR OUTLAYS SHRUNK AN ESTIMATED 43 REFLECTING SOFT DOMESTIC DEMAND AND POOR CORPORATE EARNINGS BRAZIL'S ECONOMIC OUTPUT FELL 1 LAST YEAR DESPITE A 28 SURGE IN THE FOURTH QUARTER THE DECLINE IN GROSS NATIONAL PRODUCT THE TOTAL VALUE OF THE NATION'S OUTPUT OF GOODS AND SERVICES COMPARES WITH MODEST 1 GROWTH IN 1991 THE SLUMP LEFT BRAZIL'S ECONOMY SOUTH AMERICA'S LARGEST AND THE WORLD'S NINTH LARGEST MIRED IN STAGFLATION STAGNANT GROWTH COMBINED WITH INFLATION OF 25 A MONTH INDUSTRY WAS THE BIG LOSER LAST YEAR WITH AN OUTPUT DROP OF 4 COMMERCE WAS OFF 32 AND FINANCIAL INSTITUTIONS FELL 46 WHILE AGRICULTURE ROSE 6 SWISS VOTERS WILL DECIDE SUNDAY WHETHER TO EASE GAMBLING RESTRICTIONS RAISE GASOLINE PRICES AND BAN LAB TESTS ON ANIMALS THE CASINO AND GAS MEASURES WOULD RAISE CASH TO HELP CLOSE THE BUDGET DEFICIT CASINOS WERE OUTLAWED IN 1874 AND SMALLSTAKES GAMBLING WAS ALLOWED IN 1956 REVENUE FROM CASINOS BACKED BY THE TOURISM INDUSTRY WOULD FUND PENSIONS THE GASTAX PROPOSAL WOULD RAISE PRICES NOW 570 A GALLON BY 13 CENTS WITH TOUGH ANIMAL PROTECTION LAWS ALREADY ON THE BOOKS VOTERS ARE EXPECTED TO REJECT THE TESTING MEASURE AS THEY DID IN 1985 AND 1992 REFERENDUMS ON PROPOSED LIMITS ON EXPERIMENTS PASSAGE OF THE BAN COULD FORCE SOME BIOMEDICAL RESEARCH ABROAD THE PHARMACEUTICAL INDUSTRY SAYS INDONESIA HAS ISSUED A PERMIT FOR WHAT WOULD BE ONE OF THE LARGEST FOREIGN INVESTMENTS IN THE COUNTRY A 2 BILLION PRIVATE POWER PLANT BUT ISSUES TO BE RESOLVED BEFORE THE PROJECT MAY PROCEED INCLUDE A PRICING PACT WITH THE STATE UTILITY THE PT PAITON ENERGY CO JOINT VENTURE WOULD BUILD TWO 610MEGAWATT COALPOWERED GENERATORS AT PAITON IN EAST JAVA THE CONSORTIUM CONSISTS OF MISSION ENERGY BV OF THE NETHERLANDS A UNIT OF MISSION ENERGY CO OF THE US WITH A 325 STAKE GENERAL ELECTRIC CO'S GE POWER FUNDING CORP OF THE US 325 MITSUI & CO OF JAPAN 20 AND PT BATU HITAM PERKASA 15 RUSSIA AUTHORIZED THE FIRST NEW NUCLEAR REACTOR AT A POWER PLANT IN THREE YEARS THE UNIT WILL BE THE FOURTH AT THE BALAKOVSKAYA NUCLEAR SITE IN THE SOUTHERN REGION OF SARATOV NEAR THE BORDER WITH KAZAKHSTAN THE COMPLEX USES PRESSURIZEDWATER REACTORS CONSIDERED SAFER THAN THE GRAPHITEMODERATED REACTORS AT THE SOVIETDESIGNED CHERNOBYL PLANT RUSSIA'S NUCLEAR POWER INDUSTRY HAS BEEN IN A LULL SINCE THE CHERNOBYL EXPLOSION IN APRIL 1986 BUT SHORTAGES OF ELECTRICITY HAVE FORCED OFFICIALS TO LOOK TO NUCLEAR POWER FOR THE COUNTRY'S ENERGY NEEDS A GERMAN PARLIAMENTARY FACTION REJECTED AN AGREEMENT BY THE COALITION GOVERNMENT'S LEADERSHIP TO RAISE FUEL TAXES THE STANCE BY THE CHRISTIAN DEMOCRATIC UNION/CHRISTIAN SOCIAL UNION THE SENIOR COALITION PARTNER WAS A SURPRISE FOLLOWING A COMPROMISE WITH THE FREE DEMOCRATIC PARTY THE LEADERSHIP HAD DECIDED TO INCREASE THE TAX ON GASOLINE AND DIESEL FUEL BY 13 PFENNIGS 79 US CENTS A LITER NEXT JAN 1 TAXES ON UNLEADED GAS WOULD RISE TO 95 PFENNIGS A LITER LEADED GAS TO 82 PFENNIGS AND DIESEL FUEL TO 783 PFENNIGS BUT THE LEADERSHIP FAILED TO BACK A PROPOSAL SOUGHT BY THE TRANSPORTATION AGENCY TO INTRODUCE A HIGHWAYUSER FEE OPPOSED BY OTHER EUROPEAN COMMUNITY MEMBERS THAT RELY ON GERMAN HIGHWAYS FOR TRUCK TRANSPORT PARLIAMENT DOESN'T WANT TO IMPOSE A FEE ON CARS ONLY MEANWHILE THE CABINET APPROVED AND SENT TO PARLIAMENT PROPOSALS FOR A SPENDING CONSOLIDATION PLAN AND SUPPLEMENTARY BUDGET FOR THIS YEAR THE INITIATIVES ADDRESS HOW TO PAY HUGE REUNIFICATION COSTS NEW ZEALAND SAID WAGES IN ALL ECONOMIC SECTORS LAST YEAR ROSE AN AVERAGE OF 1 IN A SYMBOLIC COSTCUTTING MOVE PRIOR TO ITS ANTICIPATED ANNOUNCEMENT OF AN ANNUAL LOSS NOMURA SECURITIES CO JAPAN'S BIGGEST SECURITIES FIRM STOPPED PROVIDING CHAUFFEURDRIVEN CARS FOR ALL ITS TOP EXECUTIVES EXCEPT THE CHAIRMAN AND THE PRESIDENT NOW 18 SENIOR OFFICIALS ARE LEARNING HOW TO COMMUTE BY TRAIN 9303050042 930305 BUSINESS BRIEFS KIRBY CORP COMPLETED ITS PURCHASE OF TPT A DIVISION OF ASHLAND OIL INC FOR 244 MILLION QUANEX CORP COMPLETED THE SALE OF ITS VIKING METALLURGICAL CORP SUBSIDIARY TO A UNIT OF JOHNSON & FIRTH BROWN PLC FOR 12 MILLION INVACARE CORP ACQUIRED PRIVATELY HELD TOP END WHEELCHAIR SPORTS INC FOR BETWEEN 5 AND 10 MILLION ALCO STANDARD CORP ACQUIRED REMCO BUSINESS PRODUCTS TERMS WEREN'T DISCLOSED MCI COMMUNICATIONS CORP SIGNED A FIVEYEAR 165 MILLION CONTRACT EXTENDING A PREVIOUS AGREEMENT TO PROVIDE TELECOMMUNICATIONS SERVICES TO INTERREGIONAL FINANCIAL GROUP INC MICHAEL BAKER CORP COMPLETED THE ACQUISITION OF OVERSEAS TECHNICAL SERVICE INTERNATIONAL TERMS WEREN'T DISCLOSED US SHOE CORP'S LENSCRAFTERS INC UNIT SIGNED AN EXCLUSIVE AGREEMENT TO OPEN AN ADDITIONAL 40 TO 60 SIGHT & SAVE OPTICAL DEPARTMENTS IN KMART CORP STORES OVER THE NEXT 12 MONTHS THE COMPANY CURRENTLY LEASES FIVE SUCH DEPARTMENTS IN KMART STORES 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 9303050041 930305 IRELAND CONFIRMS PLAN TO SELL STAKE IN GREENCORE PLC SPECIAL TO THE WALL STREET JOURNAL LONDON THE IRISH GOVERNMENT CONFIRMED THAT IT INTENDS TO SELL ITS 304 STAKE IN IRISH FOOD COMPANY GREENCORE PLC IRISH FINANCE MINISTER BERTIE AHERN SAID THE GOVERNMENT IS SEEKING COMPETITIVE BIDS FOR ITS STAKE WITH A MARCH 24 DEADLINE MR AHERN SAID OFFERS ALREADY HAVE BEEN RECEIVED FROM A NUMBER OF UNIDENTIFIED FOOD COMPANIES THE FINANCE MINISTRY SAID CRITERIA TO WIN THE BID INCLUDE PRICE AND COMPATIBILITY ALONG WITH THE DEVELOPMENT OF GREENCORE AS A MAJOR IRISH FOOD COMPANY THAT WILL CONSOLIDATE AND EXPAND EMPLOYMENT IN IRELAND GREENCORE WAS CONSIDERED THE JEWEL OF COMMERCIAL STATEOWNED COMPANIES WHEN THE GOVERNMENT TOOK 55 OF THE FORMER IRISH SUGAR CO TO MARKET AS GREENCORE PLC IN APRIL 1991 BUT SIX MONTHS LATER REVELATIONS ABOUT TRANSACTIONS CONDUCTED BY SENIOR EXECUTIVES USING OFFSHORE ACCOUNTS WHILE THE COMPANY WAS UNDER GOVERNMENT CONTROL SPARKED AN INVESTIGATION THE INQUIRY FOUND ITS WAY TO THE DIRECTOR OF PUBLIC PROSECUTIONS ALTHOUGH NO COURT CASE HAS BEEN HEARD YET NEW MANAGEMENT WAS PUT IN PLACE IN THE WAKE OF THE SCANDAL ON MONDAY TRADING IN GREENCORE STOCK WAS SUSPENDED FOLLOWING REPORTS THAT THE GOVERNMENT PLANNED TO SELL ITS REMAINING STAKE IN TRADING ON THE DUBLIN STOCK EXCHANGE ON FRIDAY GREENCORE ENDED AT 238 IRISH PENCE 350 A SHARE EIGHT PENCE ABOVE ITS ORIGINAL FLOTATION PRICE LOCAL NEWS REPORTS SAID THAT MANAGEMENT HAD SOUGHT A PARTNER AND FOUND US MULTINATIONAL ARCHERDANIELSMIDLAND CO REPORTEDLY THE CHICAGO AGRICULTURE COMPANY WAS WILLING TO PAY ABOUT 260 IRISH PENCE A SHARE FOR THE GOVERNMENT'S STAKE THE GOVERNMENT WHICH PROMISED IN LAST WEEK'S BUDGET TO RAISE 150 MILLION IRISH POUNDS BY SELLING STATE ASSETS APPARENTLY WAS ENTHUSIASTIC ABOUT A DEAL WITH ADM BUT WHEN REPORTS OF IT REACHED THE NEWS MEDIA THERE WAS CRITICISM THAT THE DEAL WASN'T MADE PUBLIC OBSERVERS ASSUME THAT WITH OPEN BIDDING ADM'S OFFER ISN'T LIKELY TO BE ACCEPTED LAST YEAR THE GOVERNMENT DIRECTLY SOLD 125 MILLION SHARES IN GREENCORE TO A SUBSIDIARY OF THE INVESTMENT BANK OF IRELAND FREEZING OUT OTHER INSTITUTIONAL INVESTORS IT WAS A BREACH OF THE GOVERNMENT'S PLEDGE TO HOLD ITS 45 SHARE FOR TWO YEARS FROM THE DATE OF PRIVATIZATION AND THE MOVE SPARKED DISTRUST BETWEEN THE MARKET AND GOVERNMENT GREENCORE'S MAIN BUSINESSES ARE SUGAR FLOUR ANIMAL FEED AND FERTILIZERS ITS GROWTH STRATEGY IS TO PURSUE FURTHER ACQUISITIONS BUT WITH THE GOVERNMENT AS A NONSUPPORTIVE SHAREHOLDER GREENCORE'S ABILITY TO GROW HAS BEEN CONSTRAINED 9303050040 930305 CREDIT MARKETS BOND RALLY ROLLS ON AS INFLATION FEARS RECEDE YIELD ON 30YEAR TREASURY ISSUE FALLS TO 673 BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE POWERFUL BOND MARKET RALLY ROLLED ON YESTERDAY WITH INTEREST RATES AGAIN HITTING RECORD LOWS AS MORE INVESTORS BECAME CONVINCED THAT LOWER INFLATION IS HERE TO STAY THE CURRENT RALLY WHICH BEGAN IN NOVEMBER AND EXPLODED IN THE DAYS FOLLOWING PRESIDENT CLINTON'S PRESENTATION TO CONGRESS OF HIS ECONOMIC PLAN YESTERDAY PUSHED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND UP NEARLY 3/4 OF A POINT OR NEARLY 750 FOR A BOND WITH A 1000 FACE VALUE ITS YIELD TUMBLED TO 673 HELPED BY NEW REPORTS YESTERDAY THAT SUGGESTED WEAKNESS IN THE ECONOMY SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE 30YEAR BOND IN 1977 THE YIELD HAD NEVER UNTIL RECENTLY DROPPED BELOW 710 YESTERDAY THE YIELD ON 10YEAR TREASURY NOTES FELL TO 583 THE LOWEST LEVEL SINCE 1971 WHILE SOME INVESTORS ARE GETTING NERVOUS ABOUT THE SPEED WITH WHICH RATES HAVE DROPPED AND FEAR A SPIKE UP IN RATES MANY HAVE BEGUN TO BELIEVE THAT A 65 YIELD ON THE 30YEAR TREASURY BOND IS A DISTINCT POSSIBILITY THIS RALLY IS INDUCED BY DROPPING INFLATION EXPECTATIONS SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC THE ECONOMY IS NOT GROWING STRONGLY THE CLINTON ECONOMIC PLAN IS CERTAINLY NOT INFLATIONARY AND THOSE THINGS COMPOUND EACH OTHER HE SAID ADDED MR FINE THE ONLY THINGS THAT ARE GOING TO STOP THIS IS IF MR CLINTON'S ECONOMIC PLAN FALLS APART OR IF INFLATION GROWS OR THE ECONOMY SLUMPS FOR THE MOMENT IT LOOKS TO ME THAT THE BOND IS ON A ONEWAY STREET TO 65 BOND PRICES WERE HELPED YESTERDAY BY TWO GOVERNMENT REPORTS INDICATING ECONOMIC WEAKNESS THE LABOR DEPARTMENT REPORTED THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE 26000 IN THE WEEK ENDED FEB 20 ANALYSTS HAD ANTICIPATED AN INCREASE OF JUST 1000 THE GOVERNMENT ALSO REPORTED THAT FACTORY ORDERS FELL 13 IN JANUARY THE LARGEST DROP IN FOUR MONTHS THE RELENTLESS NATURE OF DEMAND FOR TREASURY NOTES AND BONDS HAS BEEN IMPRESSIVE SAID JOHN COSTAS HEAD OF GOVERNMENT TRADE AT FIRST BOSTON CORP I'M VERY IMPRESSED VERY IMPRESSED MANY INVESTORS BELIEVE THE CLINTON PLAN IS A WINWIN SITUATION FOR THE BOND MARKET THEY BELIEVE THAT THE BIG TAX HIKES PROPOSED BY MR CLINTON COULD SLOW ALREADY SLUGGISH ECONOMIC GROWTH THUS FURTHER REDUCING INFLATIONARY PRESSURES ANY OF THE PRESIDENT'S PROPOSED SPENDING CUTS THAT SURVIVE CONGRESS THE LOGIC GOES WILL HELP REDUCE THE FEDERAL BUDGET DEFICIT WHICH MANY ECONOMISTS SAY HAS KEPT LONGTERM INTEREST RATES HIGHER THAN THEY WOULD OTHERWISE BE THIS BULLISH SCENARIO HAS POWERED A BOND MARKET RALLY OF HISTORIC PROPORTIONS SINCE ELECTION TIME THE YIELD OF THE 30YEAR TREASURY BOND HAS PLUNGED MORE THAN A FULL PERCENTAGE POINT AND ITS PRICE HAS SURGED MORE THAN 115 POINTS OR MORE THAN 11500 FOR A BOND WITH A 1000 FACE VALUE INVESTORS WHO PURCHASED A 30YEAR TREASURY BOND SHORTLY AFTER THE ELECTION IN NOVEMBER FOR EXAMPLE AND SOLD IT YESTERDAY WOULD HAVE REALIZED AN 115 GAIN NOT COUNTING INTEREST PAYMENTS THAT COMPARES WITH AN 85 TOTAL RETURN WITH DIVIDENDS REINVESTED ON THE STANDARD & POOR'S 500STOCK INDEX ACCORDING TO PETER CANELO AN INVESTMENT STRATEGIST AT NATWEST SECURITIES AS INTEREST RATES CONTINUE TO DROP MORE INVESTORS HAVE BECOME CONVINCED THAT NOW IS THE TIME TO MOVE MONEY INTO BOND FUNDS FROM LOWERYIELDING CERTIFICATES OF DEPOSIT AND MONEY MARKET FUNDS ACCORDING TO JEFF KOCH A PORTFOLIO MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT INC IN MILWAUKEE WEEKLY FLOWS OF NEW MONEY INTO THE 108 MILLION STRONG GOVERNMENT SECURITIES FUND HAVE BEEN RUNNING THREE TIMES GREATER THAN AVERAGE FOR MORE THAN A MONTH IT'S BEEN A PRETTY CRAZY COUPLE OF WEEKS HE SAYS AND THIS IS A SMALL FUND THAT WE HAVEN'T ADVERTISED MUCH RECENTLY TEXACO INC WHICH SAVED ABOUT 80 MILLION IN INTEREST COSTS LAST YEAR BY REFINANCING ITS HIGHYIELDING DEBT IS ONE OF A LEGION OF COMPANIES THAT HAS TAKEN ADVANTAGE OF THE DROP IN LONGTERM INTEREST RATES THE COMPANY HAS SOLD FOUR ISSUES OF 40YEAR BONDS IN THE PAST 18 MONTHS AND YESTERDAY IT SOLD 200 MILLION OF 50YEAR BONDS ITS FIRST SUCH ISSUE EVER JOHN HEWITT TEXACO'S SENIOR ASSISTANT TREASURER SAID LONGTERM INTEREST RATES ARE PRETTY ATTRACTIVE RIGHT NOW BUT MAY STILL HAVE SOME ROOM TO DROP WE DON'T MAKE INTEREST RATE PREDICTIONS HE SAID BUT YOU GENERALLY SEE A CONSENSUS FOR A 30YEAR TREASURY BOND YIELDS COMING IN AROUND 650 YESTERDAY CORPORATIONS CITIES AND STATES RUSHED MORE THAN 35 BILLION OF NEW NOTES AND BONDS TO MARKET TO TAKE ADVANTAGE OF THE LOW RATES A NUMBER OF THE NEW ISSUES HAD MATURITIES OF 20 YEARS OR MORE INTEREST RATES HAVE DROPPED SO QUICKLY THAT THIS WEEK THE TENNESSEE VALLEY AUTHORITY ANNOUNCED A TENDER OFFER SO THAT IT CAN REPLACE THREEYEAR NOTES IT ISSUED LESS THAN SEVEN MONTHS AGO WITH NEW ONES ISSUED JUST LAST WEEK BUT MANY WALL STREET FIRMS HAVE MISSED OUT ON THE HUGE PROFITS THEY MIGHT HAVE MADE ON THE RALLY SAY BOND DEALERS SOME LIKE SALOMON BROTHERS INC HAVE RACKED UP SIGNIFICANT LOSSES OVER THE PAST TWO MONTHS BY BETTING THAT PRESIDENT CLINTON'S ECONOMIC PACKAGE WOULD PUSH UP INTEREST RATES YESTERDAY THE COMPANY REPORTED A PRETAX OPERATING LOSS OF 250 MILLION FOR JANUARY AND FEBRUARY MOSTLY FROM TRADING FOR ITS OWN ACCOUNT WALL STREET SINCE THE BEGINNING OF THE YEAR HAS FOUGHT THIS RALLY MENTALLY SAID MEAD L BRIGGS HEAD OF RISK MANAGEMENT AT DEUTSCHE BANK GOVERNMENT SECURITIES INC EVEN THOUGH WE'VE HAD SUCH A DROP IN RATES IT HAS NOT BEEN QUITE THE MARKET THAT WALL STREET HAS CASHED IN ON THEY WERE FIGHTING IT ALL THE WAY THE RESULT OF THE RATE PLUNGE HAS BEEN A VERITABLE FEEDING FRENZY IN THE BOND MARKETS THAT SEEMS TO PICK UP SPEED NOT LOSE IT AS RATES DROP FURTHER THIS HAS HAPPENED FOR A NUMBER OF REASONS SAY ANALYSTS AND BOND DEALERS BECAUSE WALL STREET FIRMS WERE BETTING AGAINST A RALLY THEY DID NOT STOCK UP ON TREASURY NOTES AND BONDS TO FILL CUSTOMER ORDERS AS A RESULT THEY HAVE BEEN FORCED TO FILL THESE ORDERS BY BUYING THE TREASURY SECURITIES ON THE OPEN MARKET WHERE PRICES ARE HIGHER THIS CUTS INTO THEIR PROFITS AND AT THE SAME TIME HELPS FUEL THE RALLY ANOTHER FACTOR POWERING THE BOND RALLY HAS BEEN A WAVE OF BUYING IN THE TREASURY MARKET BY MUNICIPAL TREASURERS WHO WANT TO LOCK IN TODAY'S LOW INTEREST RATES THROUGH SOCALLED DEFEASANCE PROGRAMS IN SUCH A MOVE A STATE OR LOCAL GOVERNMENT ISSUES NEW TAXFREE DEBT AND KEEPS THE PROCEEDS SO IT CAN LATER PAY OFF ITS OUTSTANDING HIGHER INTEREST DEBT THAT IS NOT YET CALLABLE UNTIL THE OLDER SECURITIES ARE CALLED OR REDEEMED THE MONEY RAISED IS INVESTED IN TREASURY SECURITIES THE DROP IN RATES HAS ALSO SPARKED A RUSH OF HOMELOAN REFINANCING ACROSS AMERICA WHICH SHARPLY REDUCES THE VALUE OF MANY MORTGAGEBACKED SECURITIES AS HOMEOWNERS PAY OFF THEIR OLDER LOANS MANY MONEY MANAGERS HOLDING THESE SECURITIES HAVE BEEN FORCED TO DUMP THEM AND REPLACE THEM WITH TREASURY SECURITIES THUS POWERING THE RALLY EVEN MORE ONE POSSIBLE STUMBLING BLOCK TO THE RALLY COULD BE THE FEBRUARY EMPLOYMENT REPORT WHICH IS SCHEDULED TO BE RELEASED TODAY THE WIDELY WATCHED REPORT WILL OFFER THE FIRST OFFICIAL LOOK AT THE ECONOMY IN FEBRUARY AND COULD BE A STAGESETTER FOR THE BOND MARKET'S NEXT MOVE ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT EXPECT A 135000 INCREASE IN FEBRUARY NONFARM PAYROLLS FOLLOWING JANUARY'S 106000 INCREASE AN INCREASE SIGNIFICANTLY LARGER THAN THIS COULD HURT THE BOND MARKETS AND SEND PRICES LOWER BUT AN INCREASE OF 100000 OR LESS SAID ECONOMISTS COULD BE A SIGN OF ECONOMIC WEAKNESS AND HELP BOOST THE BOND MARKETS MEANWHILE YESTERDAY THE TREASURY AUCTIONED 1434 BILLION OF ONEYEAR BILLS AT AN AVERAGE DISCOUNT RATE OF 309 HERE ARE DETAILS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED MARCH 11 AND MATURE MARCH 10 1994 A WIDE ARRAY OF COMPANIES SOLD NEARLY 25 BILLION OF NEW BONDS TO TAKE ADVANTAGE OF LOW INTEREST RATES THE PACE OF BOND PRICINGS WAS FAST AS ALL BUT ONE OF YESTERDAY'S DEALS WERE PRICED BEFORE MIDAFTERNOON WHEN THE TREASURY MARKET BEGAN TO GIVE UP SOME OF ITS GAINS SEASONED ISSUES SOARED WITH TREASURYS MOST HIGHGRADE BONDS GAINED 1/4 POINT TO 5/8 POINT WHILE JUNK BONDS ENDED 1/8 POINT HIGHER BORROWERS FROM NEARLY EVERY ECONOMIC SECTOR TOOK ADVANTAGE OF THE DECLINE IN RATES BORROWERS INCLUDED MEDIA COMPANIES TIMES MIRROR CO AND GANNETT CO INSURER CIGNA CORP CRUISE SHIP OPERATOR CARNIVAL CRUISE LINES INC AND ONE UTILITY SOUTHERN CALIFORNIA GAS CO A UNIT OF PACIFIC ENTERPRISES AMONG THE NOTABLE DEALS WAS A 200 MILLION ISSUE OF TEXACO 50YEAR DEBENTURES PRICED AT 75 TO YIELD 759 OR 089 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE NONCALLABLE FOR 20 YEARS WAS UNDERWRITTEN BY DEALERS LED BY SALOMON BROTHERS INC SYNDICATE OFFICIALS SAID THEY BELIEVED THIS WAS THE FIRST ISSUE EVER OF 50YEAR BONDS BY AN INDUSTRIAL COMPANY IN APRIL 1992 TENNESSEE VALLEY AUTHORITY SOLD A 1 BILLION OFFERING OF 50YEAR POWER BONDS BONDS MATURING IN MORE THAN 30 YEARS ARE RARE ALTHOUGH TEXACO SUCCESSFULLY SOLD SEVERAL 40YEAR ISSUES LAST YEAR MR HEWITT TEXACO'S SENIOR ASSISTANT TREASURER SAID THE COMPANY HAD BEEN LOOKING INTO ISSUING 50YEAR BONDS SINCE THE TIME OF THE TVA DEAL THE DECISION TO PULL THE TRIGGER WAS MADE AFTER SEEING LONGTERM RATES DROP TO RECORD LOWS RECENTLY HE SAID MR HEWITT SAID HE WOULD CONSIDER DOING ANOTHER 50YEAR ISSUE BUT NOT UNTIL HE HAD GAUGED INVESTOR DEMAND TO YESTERDAY'S DEAL BY ALL ACCOUNTS THE DEAL WENT WELL SYNDICATE OFFICIALS SAID THAT THE DEAL WAS SOLD OUT BY LATE IN THE SESSION HELPED BY STRONG DEMAND BY PENSION FUNDS AND THE TREASURY RALLY EARLIER IN THE DAY THE DEAL'S SMALL SIZE ALSO MADE THE OFFERING MORE MANAGEABLE DEALERS SAID PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO 1/2 POINT FIRMER IN PRIMARY MARKET ACTIVITY ANOTHER 1 BILLION OF SECURITIES WAS OFFERED BRINGING THIS WEEK'S TOTAL NEW SUPPLY TO MORE THAN 4 BILLION DUE TO CONTINUED STRONG DEMAND UNDERWRITING GROUPS WERE AGAIN ABLE TO REPRICE THEIR OFFERINGS AND LOWER YIELDS BY 005 PERCENTAGE POINT OR MORE THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY OF NEW YORK CITY'S 5794 MILLION ISSUE OF SERIES 1993A GENERAL PURPOSE REVENUE REFUNDING BONDS WAS BROUGHT TO THE MARKET BY A DILLON READ & CO GROUP FOLLOWING THE REPRICING YESTERDAY AT WHICH THERE WERE YIELD CUTS OF 008 TO 01 PERCENTAGE POINT YIELDS RANGE FROM 200 IN 1994 TO 540 IN 2015 THE INITIAL YIELD SCALE WAS 210 IN 1994 TO 548 IN 2015 MOODY'S INVESTORS SERVICE INC HAS RATED THE OFFERING DOUBLEA AND STANDARD & POOR'S CORP HAS ASSIGNED A SINGLEAPLUS RATING AMONG SECONDARY ISSUES THE NEW JERSEY TURNPIKE AUTHORITY'S 650 SERIES C TURNPIKE REVENUE REFUNDING BONDS OF 2016 FINISHED 1/2 HIGHER AT 112 1/2 TO YIELD 548 INTERESTONLY STRIPPED MORTGAGE SECURITIES CONTINUED THEIR DEEP DETERIORATION AS THE TREASURY BOND YIELD'S UNRELENTING DROP PORTENDS FASTER PREPAYMENTS IOS PARTICULARLY 7 TO 85 ISSUES CRUMBLED BY ROUGHLY TWO POINTS YESTERDAY THERE WAS SPECULATION IN THE MORTGAGE MARKET THAT A SALOMON BROTHERS ESTIMATED PRETAX OPERATING LOSS OF 250 MILLION OVER THE FIRST TWO MONTHS OF 1993 STEMMED FROM LOSSES INCURRED ON IOS A SALOMON SPOKESMAN SAID THAT THE LOSSES RESULTED FROM PROPRIETARY TRADING AND DECLINED TO BE MORE SPECIFIC IN SECONDARY TRADING OF 7 ISSUES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 11/32 HIGHER AT 102 10/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 7/32 FIRMER AT 101 24/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ENDED 7/32 HIGHER AT 101 18/32 IN THE PRIMARY MARKET FREDDIE MAC ANNOUNCED TWO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS AND THE INCREASE OF AN OUSTANDING REMIC FOR A TOTAL OF NEARLY 13 BILLION NEW SECURITIES THE DEALS WERE THE 1 BILLION SERIES GOLD 1494 BACKED BY GOLD 75 ISSUES THE 100 MILLION SERIES GOLD 1495 BACKED BY GOLD 9 ISSUES AND THE INCREASE OF SERIES G007 TO 2458 MILLION FROM 918 MILLION THAT DEAL WAS COLLATERALIZED WITH GINNIE MAE 85 ISSUES TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9303050039 930305 MARKETING & MEDIA PEPSICO TO INVEST ABOUT 750 MILLION IN MEXICAN MARKET BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID IT PLANS TO INVEST 750 MILLION OVER THE NEXT FIVE YEARS IN MEXICO A MOVE THAT SIGNALS THE COUNTRY'S GROWING IMPORTANCE TO THE SOFTDRINK INDUSTRY ALREADY THE WORLD'S SECONDLARGEST SOFTDRINK MARKET MEXICO IS GENERATING INTENSE INTEREST FROM PEPSI AND COCACOLA CO COKE'S MEXICAN BOTTLER FOMENTO ECONOMICO MEXICANO SA RECENTLY SAID IT HELD TALKS TO SELL COKE A LARGE MINORITY STAKE IN FEMSA'S SOFTDRINK DIVISION DESPITE DECADES OF PRESENCE IN MEXICO PEPSI AND MARKET LEADER COKE ARE ANTICIPATING NEW BENEFITS THERE DWINDLING GOVERNMENTAL RESTRICTIONS ON PRICING PACKAGING AND ADVERTISING ARE GIVING THEM MORE FLEXIBILITY TO MARKET THEIR PRODUCTS MEANWHILE PERCAPITA INCOMES ARE RISING AND THERE IS GROWING CONFIDENCE IN THE MEXICAN ECONOMY HINGING ON THE RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE SOFTDRINK INDUSTRY ISN'T LIKELY TO BENEFIT DIRECTLY FROM NAFTA OTHER THAN FROM SOME POSSIBLE TARIFF REDUCTIONS ACCORDING TO CHRISTOPHER A SINCLAIR PRESIDENT OF PEPSICOLA INTERNATIONAL BUT IN TERMS OF ECONOMIC STABILITY IT NAFTA JUST MAKES THIS PLACE LOOK A LOT MORE ATTRACTIVE HE SAID UNDER ITS PLANS PEPSI SAID IT HAS ALREADY SPENT 115 MILLION TO BECOME EQUITY PARTNERS IN NEW BOTTLING JOINT VENTURES IN SEVERAL IMPORTANT MEXICAN MARKETS IN THE GUADALAJARA AREA PEPSI SAID IT ACQUIRED A 29 INTEREST IN ITS BOTTLER IN MONTERREY A COKE STRONGHOLD PEPSI BOUGHT A 49 STAKE IN CERTAIN BOTTLING OPERATIONS AND IN TOLUCA AND TLANEPANTLA WHICH ARE SUBURBS OF THE MAIN BATTLEGROUND MEXICO CITY PEPSI ACQUIRED A 20 STAKE IN ITS LOCAL BOTTLER RAPID EXPANSION OF OUR BUSINESS IN MEXICO IS ONE OF PEPSI'S HIGHEST STRATEGIC PRIORITIES SAID MR SINCLAIR WE'RE VIRTUALLY NOT IN A THIRD OF THE COUNTRY IN MEXICO AS IN A LOT OF OVERSEAS MARKETS COKE AND PEPSI DISAGREE ON MARKETSHARE FIGURES PEPSI CLAIMS A 31 SHARE OF THE MEXICAN COLA MARKET WHILE COKE PUTS ITS OWN SHARE AT 73 PEPSI FORECAST THAT ITS 750 MILLION MEXICAN DRIVE WOULD PUSH ITS COLA MARKET SHARE HIGHER THAN 40 WITHIN FIVE YEARS ANALYSTS EXPECT PEPSI TO EXPAND ITS DISTRIBUTION INTO SOUTHEAST MEXICO WHERE COKE IS PARTICULARLY DOMINANT WITH AN ESTIMATED 73 SHARE OF THE COLA MARKET AND THEY EXPECT COKE TO COUNTER PEPSI'S LATEST MOVES BY BUYING A STAKE IN FEMSA TO INSURE THAT ITS TURF IS WELL DEFENDED IT'S IN THEIR BEST INTEREST TO MEET PEPSI'S CHALLENGE HEAD ON SAID CARLOS LABOY A MEXICAN EQUITIES ANALYST WITH JAMES CAPEL INC COKE WOULDN'T COMMENT COKE AND PEPSI'S NEW INTEREST IN THE BOTTLING BUSINESS STEMS PARTLY FROM THE GOVERNMENT'S LIFTING OF CERTAIN PRICE CONTROLS UNSHACKLED THE SOFTDRINK INDUSTRY HAS INCREASED PRICES IN MEXICO ABOUT 30 IN THE PAST 12 TO 18 MONTHS SAID PEPSI'S MR SINCLAIR FACTORING OUT INFLATION HE SAID BOTTLER PRICES ROSE ABOUT 8 9303050038 930305 BOEING CO CUTS ITS LONGTERM FORECAST ON INDUSTRY DEMAND FOR LARGE JETLINERS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO CUT ITS FORECAST ON LONGRANGE INDUSTRY DEMAND FOR THE BIGGEST AND MOST EXPENSIVE JETLINERS BY 16 AND TRIMMED PROJECTIONS OF DELIVERIES FOR ALL PLANES THROUGH THE YEAR 2010 HOWEVER IN RELEASING THEIR ANNUAL MARKET OUTLOOK FOR THE WORLDWIDE AIRCRAFT INDUSTRY BOEING MANAGERS SAID THEY REMAIN OPTIMISTIC THAT THE MARKET WILL REBOUND FROM ITS CURRENT ILLS TO YIELD A STRONG 815 BILLION IN DELIVERIES DURING THE NEXT 18 YEARS SLACKENED DEMAND FROM AILING AIRLINES PROMPTED THE COMPANY TO SEVERELY CUT PRODUCTION PLANS LAST MONTH AS A RESULT ABOUT 27000 JOBS WILL BE LOST IN THE NEXT 18 MONTHS THE LATEST FORECAST SAYS DEMAND FOR ALL BRANDS OF JETS WITH A CAPACITY GREATER THAN 350 SEATS SUCH AS THE BOEING 747 JUMBO JET IS LIKELY TO REACH 2851 PLANES INSTEAD OF THE 3394 PREDICTED A YEAR EARLIER A DROP OF 543 JETLINERS TYPICALLY THE BOEING 747400 SELLS FOR 140 MILLION TO 160 MILLION EACH IN ITS REPORT THE COMPANY OBSERVES THAT DEMAND FOR THE BIG AIRPLANES IS BEING SUBSTITUTED WITH INCREASING DEMAND FOR MIDSIZE SINGLEAISLE JETS AS AIRLINES PLAN TO BUILD UP CAPACITY ON ROUTES BETWEEN HUB AIRPORTS AND SPOKE CITIES THEY SERVE THE LARGEST JETS ARE USED PRIMARILY ON LONGHAUL INTERNATIONAL ROUTES BOEING ALSO SCALED BACK ITS PROJECTION OF OVERALL DEMAND BY 5 TO REACH THE ESTIMATE OF 815 BILLION IN SALES BY THE YEAR 2010 COMPANY OFFICIALS SAID THEIR REVISION WAS BASED ON INCREASING AIRLINE PRODUCTIVITY SLOWER TRAFFIC GROWTH AND A SLOWING RATE OF REPLACEMENT OF OLDER JETS BY ALL AIRLINES ROBERT L DRYDEN EXECUTIVE VICE PRESIDENT OF THE BOEING COMMERCIAL AIRPLANE GROUP SAID BOEING STILL FORESEES GLOBAL AIRTRAVEL GROWTH AT AN AVERAGE RATE GREATER THAN 5 THE COMPANY ESTIMATES 12000 JETLINERS WILL BE BOUGHT TO ACCOMMODATE GROWTH AND REPLACE NOISY OLDER AIRCRAFT AFTER A LOSS OF TRAFFIC IN 1991 MR DRYDEN SAID AIR TRAVEL IMPROVED DURING 1992 HOWEVER MUCH OF THAT GROWTH WAS THE RESULT OF UNECONOMIC FARE LEVELS THAT PRODUCED CONTINUING LOSSES FOR MANY OF THE AIRLINES HE SAID NUMEROUS AIRLINES ARE NOT JUST HURTING THEY'RE SEVERELY WOUNDED WITH NATIONAL ATTENTION FOCUSED INTENSELY ON AEROSPACE INDUSTRY PROBLEMS BOEING BASED IN SEATTLE SEIZED THE CHANCE TO POINT TO POTENTIAL TRADE HURDLES AND REGULATORY COSTS IT SEES AS BURDENSOME TOP COMPANY MANAGERS HAVE BEEN UPSET BY DEMANDS SUCH AS THOSE MADE BY OFFICIALS IN EVERETT WASH THE COMPANY HAD TO PAY 47 MILLION TO HELP SOLVE CITY TRANSPORTATION PROBLEMS CREATED BY ITS PLANT EXPANSION MR DRYDEN SAID COMMUNITIES NEED TO EXAMINE THE FUNDAMENTAL BUSINESS ENVIRONMENT AND VIEW GROWTH AS A BENEFIT NOT A BURDEN IN A WASHINGTON DC NEWS CONFERENCE RICHARD ALBRECHT BOEING EXECUTIVE VICE PRESIDENT DISCUSSED COMPANY CONCERNS OVER US ACTIONS THAT COULD HOBBLE ITS TRADE IN VITAL MARKETS SUCH AS CHINA AND JAPAN HE ALSO CITED GOVERNMENT OBSTACLES THAT ARE BLOCKING SALES IN PLACES SUCH AS IRAN AND VIETNAM WHILE EUROPEAN RIVAL AIRBUS INDUSTRIE PRESSES AHEAD WITH SALES IN THOSE COUNTRIES 9303050037 930305 WHO'S NEWS CS FIRST BOSTON REPLACES HEAD OF EUROPE UNIT BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CS FIRST BOSTON GROUP INC REPLACED THE HEAD OF ITS EUROPEAN OPERATIONS EUROBOND PIONEER HANSJOERG RUDLOFF WITH NEWLY HIRED DAVID MULFORD THE FORMER US TREASURY DEPARTMENT OFFICIAL SEPARATELY THE INVESTMENT BANK'S US UNIT FIRST BOSTON CORP ALSO SUFFERED A SETBACK WHEN FOUR SENIOR INVESTMENT BANKERS INCLUDING THREE FROM THE HOUSTON OFFICE LEFT TO JOIN MERRILL LYNCH & CO IN THE LATEST SIGN OF UNHAPPINESS OVER PAY AT FIRST BOSTON MR RUDLOFF 52 YEARS OLD MADE HIS REPUTATION BY BUILDING CS FIRST BOSTON'S PRESENCE IN THE EUROBOND MARKET AND HE DOMINATED THE FIRM'S LONDON OFFICE AND EUROPEAN OPERATIONS FOR YEARS BUT HE DIDN'T EXPAND AS SUCCESSFULLY INTO SOME OTHER AREAS AND SOME WALL STREET VETERANS SAID HIS INDEPENDENCE WAS VIEWED AS A HINDRANCE TO SOME OF THE FIRM'S WORLDWIDE EFFORTS HIS REPLACEMENT BY MR MULFORD 55 WAS SEEN AS A GAIN FOR FIRST BOSTON PRESIDENT ARCHIBALD COX WHO HEADS THE FIRM'S US OPERATIONS MR MULFORD JOINED CS FIRST BOSTON IN NOVEMBER AFTER SERVING FOR EIGHT YEARS AS THE TREASURY'S POINT MAN FOR INTERNATIONAL AFFAIRS MR MULFORD WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OF CREDIT SUISSE FIRST BOSTON LTD THE FIRM'S EUROPEAN UNIT HE WILL BE RESPONSIBLE FOR THE GROUP'S ACTIVITIES IN EUROPE THE MIDDLE EAST AND AFRICA WILL KEEP A ROLE IN THE FIRM'S LATIN AMERICAN BUSINESS AND WILL ALSO JOIN THE GROUP EXECUTIVE BOARD OF THE CS FIRST BOSTON GROUP MR RUDLOFF WILL LEAVE CREDIT SUISSE FIRST BOSTON AT THE END OF 1993 AND HAS BEEN NAMED TO THE EXECUTIVE BOARD OF CS HOLDING THE SWISSBASED PARENT OF CS FIRST BOSTON GROUP HOWEVER HIS FUTURE RESPONSIBILITIES WERE DEFINED ONLY AS NEW TASKS IN THE FIELD OF GLOBAL STRATEGIES AND MIDTERM PLANNING THE INVESTMENT BANKERS LEAVING FIRST BOSTON ARE RICHARD GORDON HEAD OF THE HOUSTON OFFICE HOUSTON BANKERS SAM DODSON AND SCHUYLER TILNEY AND NEW YORK BANKER ARTHUR REICHSTETTER MR GORDON AND MR REICHSTETTER WILL BECOME COHEADS OF MERRILL'S ENERGY GROUP AND MR GORDON WILL BE RESPONSIBLE FOR INDUSTRIAL BUSINESS IN THE SOUTHWEST THE DEPARTURE OF THE BANKERS AS A GROUP IN WHAT ONE BANKER AT ANOTHER FIRM CALLED A BLOCK TRADE IS UNUSUAL BECAUSE MOST INVESTMENT BANKERS NEGOTIATE THEIR JOBS AND RESPONSIBILITIES INDIVIDUALLY UNLESS THEY ARE STARTING A NEW FIRM TOGETHER THE BANKERS INVOLVED DEFENDED SEVERAL ENERGY COMPANIES AGAINST HOSTILE TAKEOVER BIDS BY COASTAL CORP HELPED AMERICAN GENERAL CORP REMAIN INDEPENDENT AGAINST A HOSTILE BID AND PROXY FIGHT BY TORCHMARK CORP AND BROUGHT IN NUMEROUS DEBT AND EQUITY ISSUES BY COMPANIES IN THE REGION ALTHOUGH THIS IS THE SEASON FOR WALL STREET PROFESSIONALS TO CHANGE JOBS BECAUSE IT CLOSELY FOLLOWS THE AWARD OF BONUSES FIRST BOSTON HAS SUFFERED A STRING OF DEFECTIONS OVER THE ISSUE OF PAST AND FUTURE PAY SOME FIRST BOSTON BANKERS WERE INCENSED THAT WHEN THE FIRM GAVE THEM PART OF THEIR 1992 BONUSES BEFORE YEAREND TO SAVE THEM TAXES WITH RATES DUE TO RISE IN 1993 THE BANKERS WERE CHARGED INTEREST FOR THE PERIOD BEFORE THE BONUSES WERE NORMALLY PAYABLE BANKERS WERE ALSO NETTLED THAT SOME OF THEIR PAY IS CONTINGENT ON PROCEEDS FROM ASSET SALES TO BE MADE FROM A MERCHANT BANKING FUND 9303050036 930305 PRUDENTIAL UNIT SEEKS TO SETTLE SEC PARTNERSHIPS CASE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS IN THE INITIAL STAGES OF TALKS WITH THE SECURITIES AND EXCHANGE COMMISSION TO SETTLE CHARGES THAT THE BIG BROKERAGE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE 1980S PEOPLE FAMILIAR WITH THE MATTER SAID THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT FACES SCORES OF LAWSUITS AND ARBITRATION CASES THAT ALLEGE AMONG OTHER THINGS THAT THE PARTNERSHIPS WERE SOLD AS RELATIVELY SAFE INVESTMENTS THE VALUE OF MANY OF THE REAL ESTATE ENERGY AND OTHER PARTNERSHIPS SOLD BY PRUDENTIAL INSURANCE AND OTHER WALL STREET FIRMS HAS PLUNGED HURT BY TAX LAW CHANGES AND THE SLUMPING REALESTATE MARKET PRUDENTIAL OFFICIALS ARE EAGER TO PUT THE FIRM'S PARTNERSHIP WOES BEHIND THEM THE SEC DECLINED TO COMMENT AS DID PRUDENTIAL SECURITIES BUT SOME WALL STREET EXECUTIVES BELIEVE PRUDENTIAL COULD END UP PAYING A VERY HEAVY FINE FROM ANY CASE BROUGHT BY THE SEC THE AGENCY'S INVESTIGATION STEMMED FROM COMPLAINTS BY THE BROKERAGE FIRM'S CUSTOMERS PRUDENTIAL SECURITIES ALREADY HAS SET ASIDE ABOUT 400 MILLION IN RESERVES DURING THE PAST THREE YEARS FOR LEGAL COSTS FROM SOURED PARTNERSHIPS THIS YEAR PRUDENTIAL IS EXPECTED TO SET ASIDE ANOTHER 80 MILLION TO 100 MILLION PEOPLE FAMILIAR WITH THE FIRM SAID PART OF THOSE RESERVES ARE EXPECTED TO GO TOWARD PAYING ANY FINE IMPOSED BY THE SEC PRUDENTIAL SOLD ABOUT 6 BILLION OF PARTNERSHIPS DURING THE 1980S LAST MONTH A FEDERAL JUDGE SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF A SETTLEMENT PROPOSAL IN A CLASSACTION SUIT BROUGHT BY MORE THAN 100000 INVESTORS WHO BOUGHT 14 BILLION OF ENERGYPARTNERSHIPS SOLD BY PRUDENTIAL AND SECURITIES REGULATORS IN SEVERAL STATES ARE CONDUCTING SEPARATE INVESTIGATIONS OF THE PARTNERSHIP SALES MADE BY PRUDENTIAL KNOWN IN THE '80S AS PRUDENTIALBACHE SECURITIES INC 9303050035 930305 WHO'S NEWS CHARTER MEDICAL'S BOARD OUSTS FICKLING FIRM'S FOUNDER CHAIRMAN TOP OFFICER BY HELENE COOPER AND GLENN RUFFENACH STAFF REPORTERS OF THE WALL STREET JOURNAL CHARTER MEDICAL CORP SAID ITS DIRECTORS REPLACED THE COMPANY'S 60YEAROLD FOUNDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM A FICKLING JR THE DIRECTORS NAMED E MAC CRAWFORD 44 CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE OF THE HOSPITAL CHAIN MICHAEL D HERNANDEZ 45 A DIRECTOR SINCE 1992 WAS NAMED NONEXECUTIVE CHAIRMAN MR HERNANDEZ IN AN INTERVIEW SAID THE BOARD HAD BEEN REVIEWING THE MACON GA CONCERN'S LONGTERM STRATEGY SINCE SEPTEMBER AND HAD DETERMINED THAT THE COMPANY NEEDED NEW LEADERSHIP MR HERNANDEZ DECLINED TO DISCUSS THE REASONS FOR THE CHANGE OR HOW THE COMPANY'S SEVENMEMBER BOARD VOTED BUT A PERSON CLOSE TO CHARTER SAID THE FOUR INDEPENDENT DIRECTORS INCLUDING MR HERNANDEZ HAD ASKED MR FICKLING TO STEP ASIDE THOSE DIRECTORS WHO ALSO INCLUDE EDWIN M BANKS ANDRE C DIMITRIADIS AND RAYMOND H KIEFER JOINED CHARTER'S BOARD LAST YEAR FOLLOWING A MASSIVE AND LENGTHY FINANCIAL RESTRUCTURING MR FICKLING COULDN'T BE REACHED FOR COMMENT HE REMAINS A DIRECTOR A PERSON CLOSE TO CHARTER SAID MR FICKLING'S SEVERANCE PACKAGE INCLUDES PAYMENT OF HIS SALARY ABOUT 830000 A YEAR THROUGH SEPTEMBER 1995 THE END OF THE COMPANY'S FISCAL YEAR MOREOVER HE WILL RETAIN OPTIONS ON TWO MILLION CHARTER SHARES THE OPTIONS WHICH PREVIOUSLY COULD BE EXERCISED AT PRICES RANGING FROM 4 TO 9 A SHARE CAN NOW BE EXERCISED AT 25 CENTS A SHARE IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE CHARTER WAS AT 1250 A SHARE UNCHANGED MR FICKLING'S DEPARTURE MARKS THE END OF A TUMULTUOUS FIVE YEARS AT CHARTER WHICH CURRENTLY OPERATES 80 PSYCHIATRIC HOSPITALS AND 11 ACUTECARE HOSPITALS TAKEN PRIVATE IN A MANAGEMENTLED BUYOUT IN 1988 THE COMPANY WAS LEFT STRUGGLING WITH 16 BILLION IN DEBT JUST AS INSURERS AND OTHER MEDICAL PAYERS STARTED TO CRACK DOWN ON WHAT THEY CONSIDERED TO BE EXCESSIVE CHARGES FOR PSYCHIATRIC CARE IN 1991 CHARTER BEGAN A FINANCIAL RESTRUCTURING AND EVENTUALLY ENTERED BANKRUPTCY COURT WITH A PREPACKAGED CHAPTER 11 FILING THE COMPANY WENT PUBLIC AGAIN LAST JULY MEANWHILE CHARTER FOUND ITSELF EMBROILED IN A FIGHT WITH STATE REGULATORS IN TEXAS WHO HAD LAUNCHED AN INVESTIGATION INTO ALLEGED ABUSES IN BILLING AND MARKETING PRACTICES IN SEVERAL HOSPITAL CHAINS LAST DECEMBER CHARTER REACHED AN AGREEMENT WITH TEXAS OFFICIALS WHILE ADMITTING NO WRONGDOING THE COMPANY AGREED TO PAY THE STATE 550000 FOR INVESTIGATION COSTS WITHDRAW 11 MILLION OF REIMBURSEMENT CLAIMS AGAINST A STATE VICTIMCOMPENSATION FUND AND PROVIDE 16 MILLION OF FREE MENTALHEALTH CARE TO TEXAS RESIDENTS ANALYSTS SAID THE BOARD'S DECISION WASN'T SURPRISING GIVEN THE COMPANY'S ROCKY COURSE IN RECENT YEARS THEY ADDED THAT M FICKLING HASN'T MOVED QUICKLY ENOUGH TO DEAL WITH THE SOFTNESS IN THE PSYCHIATRIC HOSPITAL MARKET AVERAGE LENGTHS OF STAY IN THE INDUSTRY PLUNGED TO 19 DAYS IN 1991 FROM 26 DAYS IN 1987 ACCORDING TO HCIA A HEALTHCARE CONSULTING CONCERN IN BALTIMORE INDEED MR FICKLING'S DEPARTURE MEANS CHARTER PROBABLY WILL BEGIN TO MOVE QUICKLY TO SELL ITS WEAKER HOSPITALS SAID GEORGE PILLARI PRESIDENT OF HCIA IT'S ALWAYS DIFFICULT TO DIVEST WHEN YOU HAVE A FOUNDER AROUND MR PILLARI SAID FOUNDERS DON'T WANT TO DIVEST WITH HERNANDEZ CHARTER HASN'T BEEN HIS BABY ALL HIS LIFE AS FOR THE DAYTODAY RUNNING OF THE COMPANY ANALYSTS SAID MR CRAWFORD HAS BEEN HANDLING OPERATIONS FOR THE PAST YEAR HE'S THE ONE WHO'S TURNED THE COMPANY AROUND SAID JULIAN C SCHROEDER AT BDS SECURITIES CORP IN NEW YORK HE DID AN EXCELLENT JOB OF GETTING THE COMPANY'S COSTS UNDER CONTROL AND HE'S IMPROVED THE COMPANY'S RELATIONSHIP WITH INSURERS IN RECENT QUARTERS CHARTER HAS REPORTED STEADY IMPROVEMENTS IN ITS CORE OPERATIONS IN ITS FIRST QUARTER ENDED DEC 31 THE COMPANY SAID OPERATING PROFIT ROSE 14 TO 641 MILLION FROM 562 MILLION A YEAR EARLIER 9303050034 930305 BUILDING UP HOUSING SALES BOOM AS MORTGAGE RATES DROP TO 20YEAR LOW DALLAS AND DENVER ARE HOT EVEN CALIFORNIA GAINS AS PRICES START CLIMBING NOW THE PROBLEM IS LUMBER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FIRST TIME IN MANY YEARS MUCH OF THE US IS SEEING AN OLDFASHIONED HOUSING RECOVERY AND SOME OLDFASHIONED SHORTAGES AND HOMEPRICE INFLATION FUELED BY THE FEVERISH BONDMARKET RALLY RESIDENTIAL MORTGAGE RATES HAVE TUMBLED EVERY WEEK SINCE THE FIRST OF THE YEAR AS OF YESTERDAY THE AVERAGE 30YEAR FIXEDRATE MORTGAGE FELL TO A 20YEAR LOW OF 752 COMPARED TO 761 LAST WEEK ACCORDING TO A PRELIMINARY SURVEY BY HSH ASSOCIATES INC A BUTLER NJ RESEARCH FIRM THE SHARP DROP IN BOND YIELDS OVER THE PAST TWO DAYS COULD PUSH THE MORTGAGE RATES AS LOW AS 725 THE RATE PLUNGE MEANS THAT IN MANY PARTS OF THE COUNTRY IT IS CHEAPER TO BUY THAN TO RENT AS A RESULT HOME SALES ARE SURGING NATIONWIDE EXISTINGHOME SALES IN 1993 ARE EXPECTED TO HIT A 14YEAR HIGH AND HOUSING STARTS A SIXYEAR PEAK SALES ARE SO BRISK IN THE MIDSECTION OF THE US THAT THE GROWTH THERE IS CLASSIFIED AS A BOOM WITH SOME LOCALES REPORTING HOME PRICES SURGING 10 TO 25 OVER THE PAST YEAR THE HOUSING MARKET'S STRONG RECOVERY BELIES REPORTS ISSUED IN THE PAST WEEK INDICATING SHARP DROPS IN BOTH EXISTING AND NEWHOME SALES IN JANUARY COMPARED TO DECEMBER BECAUSE EXISTING HOME SALES OFTEN TAKE UP TO TWO MONTHS TO COMPLETE THE JANUARY NUMBERS GENERALLY REFLECT PURCHASE DECISIONS MADE IN NOVEMBER AND DECEMBER A MORE ACCURATE LEADING INDICATOR OF HOME SALES IS THE MORTGAGE BANKERS ASSOCIATION'S INDEX OF APPLICATIONS FOR LOANS TO BUY HOMES THAT INDEX HAS JUMPED 65 SINCE CHRISTMAS WEEK THE PLUMMETING INTEREST RATES ARE ALSO BENEFITING COMMERCIAL REAL ESTATE WHERE VALUES SEEM TO HAVE BOTTOMED OUT AT LONG LAST BUT THE REAL ACTION IN TERMS OF ACTUAL SALES GROWTH IS IN THE RESIDENTIAL AREA WHERE THE LOW RATES HAVE LURED IN HUNDREDS OF THOUSANDS OF FIRSTTIME BUYERS IN THE PAST YEAR THOMAS N THOMPSON A SMALL BUILDER IN OWENSBORO KY SAYS HE HAS SOLD 10 HOMES THIS YEAR COMPARED WITH JUST TWO IN THE LIKE PERIOD LAST YEAR SOME PROSPECTIVE BUYERS RECENTLY BRAVED AN EIGHTINCH SNOWFALL TO SEE HIS MODEL HOMES KEVIN SWEENEY A BOSTONAREA BUILDER HAS SOLD 34 HOMES THIS YEAR FOUR MORE THAN HE SOLD ALL LAST YEAR REALESTATE BROKER JOE DABBS HAS SOLD TWICE AS MANY HOMES IN SUBURBAN CHICAGO LAST MONTH AS IN THE YEARAGO PERIOD IT'S LIKE THE DAM BROKE OPEN MR DABBS SAYS BUT THE UNEXPECTEDLY STRONG RECOVERY IS UNEARTHING POTENTIAL BOTTLENECKS ROGER GATEWOOD A SUBURBAN CHICAGO BUILDER WHOSE SALES HAVE NEARLY DOUBLED SO FAR THIS YEAR SAYS HIGHER LUMBER PRICES ARE ERODING HIS PROFITS HE MAY SOON HAVE TO TACK AS MUCH AS 8000 TO 15000 ONTO PRICES OF HIS NEW HOMES A GROWING SHORTAGE OF BUILDING LOTS COULD ALSO DRIVE UP HOUSING PRICES ANYTHING THAT HINDERS THE HOUSING RECOVERY COULD WEIGH DOWN THE OVERALL ECONOMY BECAUSE HOUSING ACCOUNTS FOR ONEFIFTH OF THE GROWTH IN OUTPUT DURING A TYPICAL RECOVERY THANKS TO THE MULTIPLIER EFFECT IT HAS IN CREATING JOBS I HAVE GREAT OPTIMISM FOR THE SPRING BUYING SEASON SAYS MARIETTA GA BUILDER RAY REDDEN BUT I HAVE GREAT CONCERNS AFTER THAT WHATEVER THE LONGTERM OUTLOOK THE HEREANDNOW LOOKS ROSY FOR MUCH OF THE HOUSING INDUSTRY THE NATIONAL ASSOCIATION OF REALTORS EXPECTS EXISTINGHOME SALES TO HIT 37 MILLION THIS YEAR THE HIGHEST LEVEL SINCE 1979 DESPITE CONTINUED WEAKNESS IN PARTS OF CALIFORNIA AND NEW ENGLAND WHICH ACCOUNT FOR ONEFIFTH OF THE NATION'S HOUSING THE NATIONAL ASSOCIATION OF HOME BUILDERS SAYS SINGLEFAMILY HOME STARTS SHOULD RISE TO 11 MILLION IN 1993 UP ABOUT 30 FROM THE 1991 TROUGH EVERY CONCEIVABLE MEASURE IS IN PLACE FOR A VERY LARGE AMOUNT OF HOME PURCHASES SAYS JAMES A JOHNSON CHIEF EXECUTIVE OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE SIGNALS COULD NOT BE STRONGER MINIBOOMS OF ACTIVITY STRETCH FROM THE GREAT LAKES TO TEXAS AND FROM THE MOUNTAIN STATES THROUGH THE SOUTH CALIFORNIA STILL REELING IN THE SOUTH IS SEEING A MILD PICKUP AND PARTS OF THE NORTHEAST ARE FAIRLY HEALTHY SOME OF THE AREAS HARDEST HIT BY RECESSION IN THE 1980S SUCH AS DALLAS AND DENVER ARE NOW THE HOTTEST MARKETS I HAVE SO MANY PEOPLE TALKING TO ME ABOUT BUYING A HOUSE I DON'T HAVE TIME TO TALK TO THEM SAYS PETER SHADDOCK A BUILDER IN THE SIZZLING DALLAS MARKET IN PEMBROKE PINES FLA A FORT LAUDERDALE SUBURB SILVERLAKES PARTNERSHIP SAYS IT SOLD 90 HOMES IN JANUARY UP 45 FROM A YEAR EARLIER IT'S JUST A STEADY FLOW OF PEOPLE REALIZING INTEREST RATES ARE THE LOWEST THEY WILL BE IN FIVE OR SIX MORE YEARS SAYS DONALD NEUERMAN THE DEVELOPER'S VICE PRESIDENT COUNTRYWIDE CREDIT INDUSTRIES INC THE NATION'S BIGGEST MORTGAGE BANKER SAYS NEARLY 400 CUSTOMERS A DAY ARE CALLING TO LOCK IN MORTGAGE RATES FOR 30 DAYS WHILE THEY SHOP FOR A HOME NEARLY DOUBLING THE DECEMBER PACE THE HOME MARKET IS ALSO BEING HELPED BELATEDLY BY ITS PAST TROUBLES REAL PRICES ADJUSTED FOR INFLATION HAVE DECLINED AS MUCH AS 20 TO 30 SINCE 1985 IN THE HARDESTHIT AREAS OF THE COUNTRY'S MIDSECTION AND JUST AS MUCH ON THE COASTS SINCE 1989 LOWER PRICES AND FALLING RATES HAVE GENERATED THE HIGHEST AFFORDABILITY RATE SINCE 1974 ACCORDING TO A NATIONAL ASSOCIATION OF REALTORS' INDEX AND DESPITE A WEAKENING OF CONSUMER CONFIDENCE IN FEBRUARY IT IS STILL AT A HIGH LEVEL IN LARGE MEASURE BECAUSE OF THE REVITALIZED ECONOMY CONSUMER CONFIDENCE IS CONSIDERED CRUCIAL TO THE HOUSING MARKET BECAUSE PEOPLE WON'T BUY HOMES DESPITE LOW INTEREST RATES IF THEY FEAR FOR THEIR JOBS CENTEX REAL ESTATE CORP A BIG DALLASBASED BUILDER SAYS THAT ITS DALLAS SALES ARE RUNNING 20 AHEAD OF LAST YEAR'S STRONG PACE AND THAT OVERALL SALES IN ITS 20STATE MARKET ARE RUNNING ONLY 5 BEHIND LAST YEAR WHEN THEY WERE DRIVEN BY HUGE MARKETSHARE GAINS THE BUILDER HAD EXPECTED A BIGGER DROP IN SALES THERE WAS A TREMENDOUS AMOUNT OF WAIT AND SEE' AMONG BUYERS SAYS JON FOGG DIRECTOR OF SALES AND MARKETING FOR CENTEX'S ILLINOIS DIVISION NOW PEOPLE ARE STARTING TO REALIZE IT'S OK TO FEEL GOOD JIM AND TERRI SMITH OF ARLINGTON TEXAS FIT THE MOLD THEY HAD SHOPPED FOR THEIR FIRST HOME LAST YEAR BUT BACKED OFF AFTER MR SMITH A PLANT ENGINEER WORRIED THAT RESTRUCTURING BY HIS COMPANY MIGHT LEAVE HIM IN THE STREET HE CONSIDERS HIS JOB SAFE NOW AND THE SMITHS ARE BUYING A THREEBEDROOM HOME FOR UNDER 100000 I'D LIKE TO HAVE SOMETHING OF MY OWN TO RAISE A FAMILY IN SAYS MR SMITH WHOSE 860 MONTHLY MORTGAGE PAYMENT WON'T BE MUCH HIGHER AFTER TAX BENEFITS THAN THE 500AMONTH RENT THE COUPLE HAD PAID ON A ONEBEDROOM APARTMENT DESPITE BULLISH INDICATORS THE MOOD WAS SUBDUED LAST WEEK AT THE BIG ANNUAL HOME BUILDERS' SHOW IN LAS VEGAS THE PARTY POOPER LUMBER PRICES WHICH HAVE SOARED TO 474 PER 1000 BOARDFEET FROM 250 PER 1000 BOARDFEET IN OCTOBER AS MEASURED BY THE RANDOM LENGTHS COMPOSITE AVERAGE IN A SURVEY OF ATTENDEES THE BUILDERS' TRADE GROUP SPONSORING THE SHOW FOUND ALMOST TWOTHIRDS CITING LUMBER PRICES AND AVAILABILITY AS THEIR FOREMOST CONCERNS LUMBER PRICES HAVE SHOT UP BECAUSE OF RISING DEMAND FROM THE HOUSING RECOVERY BECAUSE OF A SHARP DECLINE IN TIMBER SUPPLIES FROM PACIFIC NORTHWEST FORESTS THAT HAVE BEEN RESTRICTED TO PROTECT THE ENDANGERED SPOTTED OWL AND BECAUSE OF SOME PANIC BUYING PRICES ARE RISING SO QUICKLY THAT MANY BUILDERS SAY THEY CAN LOCK IN A PRICE ONLY ONE DAY IN ADVANCE OF AN ORDER COMPARED WITH THE 60DAY QUOTES THEY GOT AS RECENTLY AS LAST FALL J ROGER GLUNT A BUILDER OUTSIDE OF PITTSBURGH AND PRESIDENT OF THE HOME BUILDERS' ASSOCIATION SAYS HE RECENTLY AGREED TO BUILD A HOME FOR 101000 ONLY TO DISCOVER THAT THE LUMBER WOULD COST 1000 MORE THAN HE EXPECTED BUT THE CONTRACT WAS SIGNED AND MR GLUNT SAYS HE MUST ABSORB THE DIFFERENCE SO ARE MOST BUILDERS FOR THE TIME BEING BUT SINCE MANY BUILDERS LIKE MR GLUNT NOW OPERATE ON RAZORTHIN PROFIT MARGINS THEY HAVE NO CHOICE BUT TO BEGIN EVENTUALLY PASSING THE COSTS ON BUILDERS SAY THAT IF THEY WERE TO PASS THROUGH THE HIGHER LUMBER PRICES THE PRICE OF A TYPICAL 120000 HOME WOULD RISE TO 124000 WE'RE IN A BOX A TIGHT BOX SAYS MR GLUNT IRA NORRIS PRESIDENT OF INCO HOMES A BIG BUILDER BASED IN UPLAND CALIF SAYS HIGHER LUMBER PRICES ARE ADDING 2500 TO PRICES OF HIS ENTRYLEVEL HOMES IN THE 60000 RANGE IN SOUTHERN CALIFORNIA THEN THERE IS THE IMPENDING SHORTAGE OF FINISHED LOTS VACANT GRADED PLOTS WITH STREETS AND UTILITIES IN PLACE THE BUILDERS HAVE NOT BEEN STOPPED FROM GETTING LOANS TO BUILD HOUSES BUT UNDER PRESSURE FROM REGULATORS TO REDUCE REALESTATE EXPOSURE BANKS IN THE PAST TWO YEARS HAVE ALL BUT SHUT OFF THE LOAN SPIGOT FOR DEVELOPMENT OF VACANT LOTS WHICH HAVE PROVED TO BE MORE SPECULATIVE INVESTMENTS CONSEQUENTLY SHORTAGES ARE APPEARING IN HOT MARKETS SUCH AS DENVER AND PHOENIX IN A POLL BY THE HOME BUILDERS' ASSOCIATION 34 OF BUILDERS REPORTED LOW INVENTORIES OF VACANT LAND IN THEIR MARKETS IN THE NORTHEAST FOR EXAMPLE TOLL BROTHERS INC A BIG BUILDER BASED IN HUNTINGDON VALLEY PA SAYS IT IS SEEING LOT SHORTAGES IN BOSTON AND THE CONNECTICUT SUBURBS OF NEW YORK CITY AND THAT SHORTAGES ARE IMMINENT WITHIN THE NEXT YEAR IN THE EASTERN SUBURBS OF PHILADELPHIA MARYLAND DELAWARE AND VIRGINIA LARRY KUSH A SMALL BUILDER IN SCOTTSDALE ARIZ SAYS HIS BANKS HAVE TOLD HIM HE CAN'T GET A LOAN TO ACQUIRE AND DEVELOP LAND UNLESS HE MATCHES IT 50 WITH HIS OWN MONEY SO MR KUSH IS HAVING TO TURN TO PRIVATE LAND BANKS IN THE AREA TO BUY LOTS AT PREMIUMS OF 3000 MORE PER LOT THAN IF HE FINANCED THEM IT'S NOT NECESSARILY ALL BAD BECAUSE I DON'T HAVE TO WORRY ABOUT A LOAN EVERY MONTH MR KUSH SAYS BIG PUBLICLY HELD BUILDERS WHO HAVE ACCESS TO CAPITAL TO PREPARE THEIR OWN LOTS COULD GAIN MORE MARKET SHARE BECAUSE OF THE SHORTFALLS BUT SMALLER BUILDERS SAY THAT A DEARTH OF PLOTS COULD FUEL HOMEPRICE INFLATION AND STUNT SALES GROWTH THE LOT SHORTAGE IS NOT A CATASTROPHIC PROBLEM YET BUT IF TRENDS CONTINUE IT COULD BE SAYS KENT W COLTON CHIEF EXECUTIVE OF THE TRADE GROUP AS PRICES OF NEW HOMES CLIMB AND SUPPLY DIMINISHES NEW FUEL WILL BE ADDED TO ALREADYHOT RESALE MARKETS RESURGING DEMAND IS PUSHING PRICES UP SHARPLY IN THE MOST ROBUST PLACES ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS MEDIAN PRICES IN THE RICHLAND WASH AREA SURGED 26 TO 94700 IN THE 1992 FOURTH QUARTER FROM A YEAR EARLIER IN OKLAHOMA CITY PRICES SOARED 183 TO 67200 HOUSTON'S HAVE RISEN 154 TO 81900 BILL SUTHERLAND AN ARLINGTON TEXAS BROKER SAYS SALES OF EXISTING HOMES ARE SO STRONG HIS AGENTS ARE GETTING MULTIPLE OFFERS ON PROPERTIES FOR THE FIRST TIME IN YEARS IN MADISON WIS BROKER BILL KESSLER SAYS THERE IS SUCH A SHORTAGE OF HOMES THAT DESIRABLE LISTINGS OFTEN SELL IN 12 HOURS IT'S VERY MUCH A SELLER'S MARKET HE SAYS WITH MARKET INVENTORY FALLEN TO ABOUT ONETHIRD THE LOCAL DEMAND MADISON'S MEDIAN HOUSING PRICES SOARED 11 LAST YEAR THE CITY'S HIGHEST RATE OF INCREASE IN TWO DECADES AND BROKERS PREDICT THE SAME APPRECIATION THIS YEAR THE AVERAGE SELLING PRICE OF A WELLLOCATED THREEBEDROOM EXECUTIVE HOME HAS RISEN TO 130000 FROM 116000 A YEAR AGO RISING PRICES USUALLY WELCOME IN A FULLFLEDGED BOOM AREN'T AS POPULAR IN A FLEDGLING RECOVERY EVERY TIME PRICES GO UP PARTICULARLY AT THE BOTTOM END IT CAUSES PEOPLE NOT TO QUALIFY SAYS MR GLUNT THE HOME BUILDERS' ASSOCIATION PRESIDENT AND MANY TIMES PEOPLE MOVING TO A SECOND HOME MIGHT OPT TO STAY IN THEIR HOUSE AND JUST REMODEL BUT EVEN IN AN ENVIRONMENT OF RISING PRICES THERE IS STILL HUGE PENTUP DEMAND THAT WOULD CONTINUE TO FUEL THE MARKET ALTHOUGH PERHAPS LESS ROBUSTLY THAN TODAY WITH DEMAND ESTIMATED AT 13 MILLION AND 14 MILLION NEW HOMES EACH YEAR NEW CONSTRUCTION HAS FALLEN BEHIND AND SUPPLY HAS SHRUNK TO ABOUT FIVE MONTHS THE LOWEST SUPPLY SINCE 1983 ACCORDING TO THE BUILDERS' ASSOCIATION WHAT'S MORE MOST ANALYSTS EXPECT MORTGAGE RATES TO STAY LOW WELL INTO NEXT YEAR AND HELP SPUR STEADY IF NOT BOOMING GROWTH THOMAS P MILLS A ST PETERSBURG FLA BROKER SAYS PRICES ROSE 4 LAST YEAR AND HE EXPECTS ANOTHER 4 JUMP THIS YEAR AS DEMAND INTENSIFIES I DON'T KNOW IF IT'S A SELLER'S MARKET YET HE SAYS WHAT WE'RE ENDING UP WITH IS MORE OF A STABLE MARKET AND SOME FUNDAMENTAL SHIFTS MAY INDICATE THAT STABILITY RATHER THAN THE KIND OF SUSTAINED BOOMS SEEN IN THE 1970S AND 1980S ARE IN STORE FOR THE REST OF THE DECADE LELAND C BRENDSEL CHIEF EXECUTIVE OF THE FEDERAL HOME LOAN MORTGAGE CORP NOTES THAT HOUSEHOLD FORMATIONS YOUNG FAMILIES STARTING OUT HAVE SLOWED SUBSTANTIALLY AND THAT THE PRICE DEFLATION OF THE PAST DECADE HAS MADE HOME BUYERS MORE SKEPTICAL ABOUT THE VALUE OF OWNING A HOME AS A FINANCIAL INVESTMENT A SLOWER MARKET MAY BE UNEXCITING HE SAYS BUT IT MAY CHANGE THE BOOM AND BUST CYCLE OF THE HOME BUILDING MARKET 9303050033 930305 INTEL SEES HANDHELD COMPUTERS BASED ON ITS CHIPS BY EARLY 1994 BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP SAID IT EXPECTS EARLY NEXT YEAR TO SEE COMPUTER MAKERS BEGIN SELLING SMALL LIGHTWEIGHT HANDHELD COMPUTERS BASED ON SPECIALLYMADE VERSIONS OF THE CHIPS IT MAKES FOR PERSONAL COMPUTERS INTEL THE DOMINANT SUPPLIER OF MICROPROCESSORS USED AS THE BRAINS IN MOST PERSONAL COMPUTERS HAS BEEN CONSPICUOUSLY QUIET IN THE RACE TO DEVELOP AND MARKET THE NEW CLASS OF LOWPRICED LIGHTWEIGHT PORTABLE COMPUTERS SOMETIMES REFERRED TO AS PERSONAL DIGITAL ASSISTANTS OTHER COMPANIES SUCH AS APPLE COMPUTER INC AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE ALREADY DEMONSTRATED AND IN SOME CASES HAVE BEGUN SELLING IN LIMITED QUANTITIES VERSIONS OF THEIR NEW COMPUTERS INTEL BASED IN SANTA CLARA CALIF IS CURRENTLY READYING FULLY FUNCTIONAL SAMPLES OF THE CHIPS DEVELOPED WITH ANOTHER SEMICONDUCTOR MAKER VLSI TECHNOLOGY INC SAN JOSE CALIF SAID MICHAEL AYMAR VICE PRESIDENT OF INTEL'S MOBILE COMPUTING GROUP THE SAMPLES WILL BE SHIPPED IN THE SECOND HALF OF 1993 TO SEVERAL COMPUTER MANUFACTURERS WHO ARE DEVELOPING COMPUTERS AROUND THE CHIP HE SAID COMPUTER MAKERS TYPICALLY BEGIN SELLING PRODUCTS BASED ON A NEW CHIP TWO TO FOUR MONTHS AFTER RECEIVING CHIP SAMPLES HE SAID THE CHIPS ARE SPECIALLY MADE VERSIONS OF INTEL'S 386 AND 486 MICROPROCESSORS WHICH ARE WIDELY USED IN PERSONAL COMPUTERS MR AYMAR SAID SPECIAL VERSIONS OF THE CHIP THAT USE LESS POWER ARE NEEDED FOR PORTABLE COMPUTERS WHICH DEPEND ON BATTERIES MR AYMAR SAID INTEL HAS CUSTOMERS FOR THE NEW CHIPS LINED UP BOTH IN THE US AND JAPAN HE DECLINED TO NAME THOSE CUSTOMERS THE CHIPS WERE DESIGNED FOR COMPUTERS THAT ARE EXPECTED TO SELL AT PRICES BEGINNING AT 500 HE SAID INTEL IS ALSO WORKING WITH MICROSOFT CORP GO CORP AND OTHER SOFTWARE COMPANIES TO ASSURE THAT THE NEW CHIPS WILL WORK WITH DIFFERENT TYPES OF SOFTWARE MR AYMAR DECLINED TO DISCUSS INTEL'S RELATIONSHIP WITH SPECIFIC SOFTWARE MAKERS BUT SAID THE CHIPS ARE DESIGNED TO WORK WITH SOFTWARE MADE BY VARIOUS COMPANIES EXCEPT APPLE WHICH IS DEVELOPING ITS OWN SOFTWARE FOR A COMPUTER CALLED NEWTON MICROSOFT HAS BEEN WORKING ON SOFTWARE ONE VERSION OF WHICH IS CODENAMED WINPAD FOR HANDHELD DEVICES NATHAN MYHRVOLD WHO HEADS MICROSOFT'S ADVANCED RESEARCH AND DEVELOPMENT GROUP DECLINED TO COMMENT ON SPECIFIC PRODUCTS CURRENTLY UNDER DEVELOPMENT BUT SAID THE COMPANY WAS WORKING ON SEVERAL PROJECTS FOR HANDHELD COMPUTERS WHATEVER SOFTWARE MICROSOFT DEVELOPS FOR THE DEVICES HE SAID IT WILL WORK WITH THE COMPANY'S WINDOWS SOFTWARE WHICH IS WIDELY USED IN DESKTOP COMPUTERS INTEL AND MICROSOFT HAVE EACH EARNED FORTUNES AS THE DOMINANT SUPPLIERS OF KEY TECHNOLOGIES TO PERSONAL COMPUTERS BUT THE TWO COMPANIES HAVE YET TO MAKE WAVES IN WHAT INDUSTRY EXECUTIVES PREDICT WILL BECOME A MASSCONSUMER MARKET OVER THE NEXT SEVERAL YEARS IT LOOKS LIKE THE TRAIN IS LEAVING THE STATION AND THESE GUYS HAVE TO CONVINCE EVERYONE THEY ARE ON BOARD SAID WILLIAM BLUESTEIN AN ANALYST WITH FORRESTER RESEARCH INC A MARKET RESEARCH FIRM ONCE THE TECHNOLOGIES DEVELOPED BY THE TWO COMPANIES ENTER THE MARKET COMPETITION WILL BE WAITING HE SAID OFFICIALS AT BOTH INTEL AND MICROSOFT DISAGREE SAYING THE MARKET FOR THE NEW DEVICES IS STILL UNFORMED I DON'T THINK ANYBODY IS LATE MR AYMAR SAID ADDING IT IS STILL A WIDEOPEN MARKET 9303050032 930305 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON SEEKS PRIVATE FUNDING TO PROMOTE HIS HEALTHCARE PLAN THE ADMINISTRATION TRIES TO DRUM UP BACKING AMONG UNIONS AND BUSINESS TO HELP RAISE MILLIONS OF DOLLARS FOR A GRASSROOTS CAMPAIGN TO SUPPORT HIS COMING REFORM PROPOSAL THE PRESIDENT HIMSELF MAKES A LATENIGHT PHONE CALL TO A UNION LEADER THE WHITE HOUSE'S ROBERT RUBIN IS INVOLVED IN MAPPING DETAILS OF THE FUNDRAISING EFFORT DEMOCRATIC PARTY CHAIRMAN DAVID WILHELM HAS BEEN ASSIGNED TO PUT TOGETHER A PRESIDENTIALSTYLE CAMPAIGN TO COURT PUBLIC APPROVAL FOR THE PLAN TO BUILD UNION SUPPORT THE WHITE HOUSE APPEARS TO BACK AWAY FROM THE IDEA OF TAXING SOME MOREGENEROUS EMPLOYERPROVIDED HEALTH PLANS HILLARY RODHAM CLINTON WOOED LABOR WITH A PRIVATE VISIT TO AFLCIO HEADQUARTERS ON WEDNESDAY CLINTONITES FIGHT A SENATE PUSH TO COMBINE DEFICIT CUTS AND HEALTH REFORM CLINTON ECONOMIC ADVISERS FEAR THAT THE PROPOSAL BY SENATE LEADER MITCHELL MIGHT SINK BOTH EFFORTS I'D LIKE TO LEAVE OUR OPTIONS OPEN TREASURY CHIEF BENTSEN SAYS HOUSE LEADERS ALSO OPPOSE MIXING THE TWO ISSUES IF THE HEALTHCARE PLAN IS POPULAR ENOUGH YOU CAN DRIVE IT THROUGH SEPARATELY SAYS WISCONSIN REP OBEY CLINTON'S FORMAL BUDGET WILL SEEK INCREASED POWERS TO ALLOW HIM TO FORCE CONGRESS TO RECONSIDER SPECIFIC SPENDING ITEMS BUDGET CHIEF PANETTA CALLS ODDS OF APPROVAL VERY GOOD IN THE HOUSE BUT SENATE BACKING MAY DEPEND ON POWERFUL SEN BYRD OF WEST VIRGINIA THOUGH THE DEFICIT PLAN WINS FEW GOP CONVERTS ANY REPUBLICAN THAT UNDERESTIMATES CLINTON IS AT GREAT RISK SAYS ARIZONA SEN MCCAIN FED POLICY WILL STAY ON HOLD DESPITE SIGNS OF FASTER ECONOMIC GROWTH FEDERAL RESERVE OFFICIALS BRUSH OFF RAPID FOURTHQUARTER GROWTH AS UNLIKELY TO BE REPEATED IN THE FIRST QUARTER AND THEY EMPHASIZE SIGNS THAT INFLATION IS ALL BUT NIL OFFICIALS ARE ALSO HESITANT TO MAKE ANY CHANGES IN POLICY UNTIL IT IS CLEAR WHAT IS GOING TO HAPPEN TO CLINTON'S ECONOMIC PLAN SOME FED OFFICIALS COMPLAIN THAT CHAIRMAN GREENSPAN IS PERCEIVED AS SUPPORTING THE CLINTON PROGRAM IF THE ECONOMY TURNS SOUTH THEY FEAR THE FED WILL GET THE BLAME FOR NOT CUTTING INTEREST RATES BUT FOR NOW THEY TAKE COMFORT THAT CONGRESS HAS EASED ITS FED BASHING WITH GREENSPAN GETTING SURPRISINGLY EASY QUESTIONING IN THREE RECENT APPEARANCES BEFORE LAWMAKERS CLINTON WON'T GET HIS FIRST SHOT TO HAVE DIRECT INFLUENCE AT THE FED UNTIL MEMBER WAYNE ANGELL'S TERM ENDS NEXT JANUARY NUNN READIES A SWIPE AT CLINTON'S DEFENSE CUTS AFTER SEVERAL DAYS OF INTENSE TALKS WITH THE WHITE HOUSE THE INFLUENTIAL CHAIRMAN OF THE SENATE ARMED SERVICES COMMITTEE PLANS A SPEECH TODAY QUESTIONING THE PRESIDENT'S PLANS FOR DEFENSE BUDGETS BILLIONS OF DOLLARS BELOW WHAT HE CAMPAIGNED ON THE GEORGIA DEMOCRAT ALSO WILL KNOCK THE SLOW PACE OF PENTAGON APPOINTMENTS GAY GROUPS PLAN A NATIONWIDE DRIVE TO LOBBY CONGRESS IN FAVOR OF HOMOSEXUALS IN THE MILITARY THE CAMPAIGN FOR MILITARY SERVICE MAPS A CAMPAIGN INCLUDING A NATIONAL BUS TOUR OF GAY VETERANS EFFORTS WOULD CULMINATE WITH A GIANT MARCH ON WASHINGTON APRIL 25 SOME ACTIVISTS ARE CONSIDERING A SITIN AT THE PENTAGON THEN UNFRIENDLY SKIES CLINTON OFFICIALS ARE LIKELY TO DECIDE NEXT WEEK ON RETALIATION AGAINST JAPAN'S REJECTION OF NEW UNITED AIR LINES FLIGHTS THERE ONE POSSIBILITY CURTAILING JAPANESE FLIGHTS FROM LOS ANGELES TO BRAZIL WITHOUT SANCTIONS SOME OFFICIALS ARGUE OTHER NATIONS WILL BE EMBOLDENED TO FOLLOW JAPAN'S LEAD SHADES OF SUNUNU CLINTON CONFIDANT SUSAN THOMASES A NEW YORK LAWYER DRAWS FIRE FROM WHITE HOUSE AIDES AND TOP DEMOCRATS FOR A WASHINGTON POST PROFILE IN WHICH SHE SAVAGES FELLOW CAMPAIGN WORKERS AND FORMER BOSS SEN BRADLEY BUT THOMASES DISMISSES SUGGESTIONS THE ARTICLE WILL CURB HER INFLUENCE TELLING FRIENDS THAT SHE AND HILLARY CLINTON LIKED THE PIECE CLINTON HOPES TO USE YELTSIN'S VISIT NEXT MONTH TO BOLSTER HIM BACK HOME US OFFICIALS SAY THEY WILL FOCUS HELP FOR THE BELEAGUERED RUSSIAN LEADER ON POLITICALLY SENSITIVE AREAS SUCH AS THE MILITARY IDEAS INCLUDE A HOUSING PROGRAM TO HELP BRING RUSSIAN TROOPS HOME FROM THE BALTICS AND BELARUS CLINTON MAY SIGNAL A WILLINGNESS TO BUY RUSSIAN SPACE TECHNOLOGY OFFICIALS WANT RUSSIA'S FOREIGN DEBT RESCHEDULED BEFORE THE SUMMIT SO THE US CAN HELP FINANCE MORE GRAIN SALES THE ACTION HAS BEEN FRUSTRATED BY SQUABBLING WITH UKRAINE AND WITH EUROPEAN CREDITORS IF THERE IS ANY CHANCE OF BREAKING THROUGH CLINTON HIMSELF MIGHT LOBBY UKRAINE OR THE EUROPEANS TO CLOSE THE DEAL THE MAIN GOAL A US OFFICIAL SAYS IS SOME PROGRAMS FOR YELTSIN TO TAKE HOME AND PROVE THAT THE AMERICANS HAVE FINALLY GOTTEN THEIR ACT TOGETHER MINOR MEMOS SECRETARY OF STATE CHRISTOPHER'S WIFE MARIE TURNED HEADS AT A GETACQUAINTED LUNCHEON FOR CABINET SPOUSES THIS WEEK WHEN SHE ARRIVED DRIVING A BIG FOREIGNMADE MERCEDES SEDAN THE GOVERNMENT STILL PRINTS DOLLAR BILLS WITH FORMER TREASURY CHIEF BRADY'S SIGNATURE BENTSEN'S CAN'T BE USED UNTIL CLINTON PICKS A NEW TREASURER OF THE US WHO ALSO SIGNS ET TU BOB THE AMERICAN PETROLEUM INSTITUTE CONSIDERS A CAMPAIGN AGAINST CLINTON'S ENERGY TAX LED BY DEMOCRATIC STRATEGIST BOB BECKEL WHO SAYS HE WOULD SIGN ON ONLY IF PERSUADED THAT THE TAX IS REGRESSIVE 9303050031 930305 SEC MAY SUE MERRILL LYNCH OVER BOND DEALS FIRM IS INVITED TO TELL WHY IT SHOULDN'T BE CHARGED WITH VIOLATING RULES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPEARS TO BE MOVING TOWARD SUING MERRILL LYNCH & CO IN CONNECTION WITH THE FIRM'S BOND DEALINGS WITH A NOWINSOLVENT FLORIDA INSURANCE COMPANY MERRILL LYNCH HAS BEEN INVITED BY THE SEC STAFF TO EXPLAIN WHY IT SHOULDN'T BE CHARGED WITH VIOLATING THE SECURITIES LAWS FOR ITS YEAREND TRADES OF JUNK BONDS AND TREASURY BONDS WITH GUARANTEE SECURITY LIFE INSURANCE CO JACKSONVILLE FLA ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER OTHERS INVITED TO MAKE SOCALLED WELLS SUBMISSIONS IN THE CASE INCLUDE RICHARD ALLERTON THE FORMER MERRILL LYNCH BOND SALESMAN WHO HANDLED THE INSURANCE COMPANY ACCOUNT AND DONALD WITHERS THE COOPERS & LYBRAND PARTNER WHO AUDITED THE INSURER'S FINANCIAL STATEMENTS SOURCES SAID THE WELLS SUBMISSION PROCEDURE GIVES POTENTIAL DEFENDANTS A LAST CHANCE TO TRY TO CONVINCE SEC ENFORCEMENT OFFICIALS THAT THEY SHOULDN'T BE CHARGED WITH SECURITIESLAW VIOLATIONS THE SUBMISSIONS ARE DUE LATER THIS MONTH ACCORDING TO ATTORNEYS INVOLVED IN THE MATTER A MERRILL LYNCH SPOKESMAN DECLINED TO SAY WHETHER THE FIRM HAS BEEN INVITED TO MAKE A WELLS SUBMISSION THE FIRM PREVIOUSLY CONFIRMED BEING INVESTIGATED BY THE SEC THE SPOKESMAN SAID THE COMPANY CONTINUES TO PROVIDE INFORMATION TO GOVERNMENT INVESTIGATORS AND INSISTED THAT IT ENGAGED IN NO WRONGDOING WHEN ASKED ABOUT A WELLS SUBMISSION CHARLES STILLMAN AN ATTORNEY FOR MR ALLERTON REPLIED WE'LL BE PRESENTING OUR ARGUMENTS TO THE SEC WILLIAM MCLUCAS THE SEC'S ENFORCEMENT CHIEF DECLINED TO COMMENT THE MIAMI LAW FIRM REPRESENTING MR WITHERS REFERRED QUERIES TO COOPERS & LYBRAND A COOPERS & LYBRAND SPOKESMAN CITED THE FIRM'S POLICY OF NEITHER CONFIRMING NOR DENYING ANY INVESTIGATION AT ISSUE ARE A SERIES OF YEAREND BOND TRADES IN THE MID1980S INVOLVING HUNDREDS OF MILLIONS OF DOLLARS THE TRADES INVOLVED MERRILL LYNCH AND GUARANTEE SECURITY WHICH WAS DECLARED INSOLVENT IN 1991 AND TAKEN OVER BY FLORIDA AUTHORITIES THE INSURER SOLD JUNK BONDS TO MERRILL LYNCH AT YEAR END AND THEN BOUGHT THEM BACK AT THE START OF THE NEXT YEAR MERRILL LYNCH SIMULTANEOUSLY SOLD TREASURY SECURITIES TO THE INSURER AT YEAR END AND REPURCHASED THEM EARLY THE NEXT YEAR FLORIDA REGULATORS HAVE ALLEGED IN A LAWSUIT AGAINST MERRILL LYNCH AND OTHERS THAT THESE WERE PHANTOM TRADES DESIGNED TO HELP THE INSURER HIDE ITS FINANCIAL PROBLEMS FROM POLICYHOLDERS AND REGULATORS A FLORIDA COURT RECENTLY DENIED A MOTION BY MERRILL LYNCH AND MR ALLERTON TO DISMISS THE STATE COMPLAINT COOPERS & LYBRAND'S MR WITHERS FIRST REFUSED TO SIGN OFF ON THE BOND TRADES AS LEGITIMATE BUT EVENTUALLY DID SO AFTER A SHIFT IN ACCOUNTING METHODOLOGY MERRILL LYNCH STEADFASTLY DEFENDS THE BOND TRADES AS LEGITIMATE INSISTING THAT ALL THE TRANSACTIONS WERE DISCLOSED TO REGULATORS SINCE THE INSURER'S ACCOUNTANTS HAD CONCLUDED THE TRADES COULD BE DONE LEGALLY THE FIRM ARGUES THERE WAS NO MOTIVE TO DO SO ILLEGALLY 9303050030 930305 BUSINESS BRIEF SOUTHERN CROSS AIRLINES HOLDINGS LTD RECEIVERMANAGER IS SOUGHT TO RUN COMPASS AIR UNIT COMPASS AIRLINES A SMALL AUSTRALIAN DOMESTIC CARRIER OWNED BY SOUTHERN CROSS AIRLINES HOLDINGS LTD REQUESTED THE APPOINTMENT OF A RECEIVERMANAGER TO RUN THE AIRLINE WHILE IT TRIES TO ARRANGE ADDITIONAL FINANCING SOUTHERN CROSS SAID THE RECEIVER WILL BE INSTRUCTED TO CONTINUE OPERATING THE AIRLINE WHILE NEGOTIATIONS CONTINUE WITH BANKERS COMPASS HAS BEEN UNABLE TO CONCLUDE NEGOTIATIONS OVER A FINANCING PACKAGE OF 92 MILLION AUSTRALIAN DOLLARS US65 MILLION FROM A COMPANY ASSOCIATED WITH DEPUTY CHAIRMAN DOUG REID MR REID HAS TOLD DIRECTORS THAT NEGOTIATIONS WITH HIS FINANCIERS ARE LIKELY TO BE PROTRACTED ALTHOUGH THE FIRST A5 MILLION IS LIKELY TO BE AVAILABLE FROM EARLY NEXT WEEK 9303050029 930305 COMMODITIES OIL CLOSES OVER 21 AS PETROLEUM FUTURES PRICES INCREASE SHARPLY TRADERS CITE TECHNICAL FACTORS BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM FUTURES PRICES ROSE SHARPLY ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY WITH APRIL CRUDE OIL CLOSING ABOVE 21 A BARREL AND MARKET PLAYERS CITING TECHNICAL FACTORS FOR THE JUMP IN ANOTHER ABBREVIATED FOURHOUR TRADING SESSION CRUDE OIL FOR APRIL DELIVERY GAINED 59 CENTS TO FINISH THE DAY AT 2107 THE FIRST TIME SINCE OCTOBER THAT THE NEARMONTH CONTRACT HAS EVEN TRADED ABOVE 21 A BARREL PETROLEUM PRODUCTS PRICES SHOWED SHARP INCREASES AS WELL INDEED SOME MARKET WATCHERS SAID WEATHERRELATED STRENGTH IN HEATING OIL HELPED SPUR THE GAINS ELSEWHERE IN THE PETROLEUM COMPLEX THE EXCHANGE SCALED BACK ITS HOURS FOLLOWING LAST FRIDAY'S BOMBING SO AS NOT TO TAX POWER SUPPLIES AND COMPUTER SYSTEMS YESTERDAY'S TRADING WAS THE MOST ACTIVE THE EXCHANGE HAS SEEN SINCE THE BLAST AND THE DEARTH OF TRADERS ALSO MIGHT HAVE BEEN A FACTOR IN THE SHARP RISE THERE AREN'T AS MANY TRADERS AS THERE NORMALLY ARE SAID DREW DICKSON A PETROLEUM FUTURES TRADER FOR GSC ENERGY IN ATLANTA THAT TENDS TO EXACERBATE THE SITUATION MOST PETROLEUM MARKET ANALYSTS AND TRADERS COULDN'T POINT TO ANY NEWS DEVELOPMENTS TO EXPLAIN THE RUNUP IN PRICES ALTHOUGH THEY CONTINUED TO MAKE NOTE OF A RECENT FLURRY OF SMALLISH REFINERY FIRES AND LONGERTHANEXPECTED SHUTDOWNS FOR MAINTENANCE BUT MOST AGREED THAT ONCE CRUDE PRICES MOVED HIGH ENOUGH ESPECIALLY PAST 2075 WHICH FOR SEVERAL SESSIONS HAD BEEN A RESISTANCE POINT THEY SIMPLY TOOK OFF THE RISE TO THAT CRITICAL POINT WAS AIDED CONSIDERABLY BY THE MUSCLE IN HEATING OIL COLD WEATHER IN NORTHERN EUROPE HAD PUSHED GAS AND OIL PRICES HIGHER ON THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON MR DICKSON SAID AND THAT STRENGTH ROLLED OVER INTO HEATING OIL TRADING IN NEW YORK IN ADDITION REPORTS OF A WINTER STORM APPROACHING THE NORTHEASTERN US COMBINED WITH RECENT INVENTORY STATISTICS FROM THE DEPARTMENT OF ENERGY AND THE AMERICAN PETROLEUM INSTITUTE LIFTED HEATING OIL FOR APRIL DELIVERY TO 5981 CENTS A GALLON AN INCREASE OF 165 CENTS GASOLINE FUTURES WENT ALONG FOR THE RIDE WITH THE APRIL CONTRACT RISING 178 CENTS TO 6077 CENTS SEVERAL MARKET OBSERVERS HAD EXPECTED A LATE SELLOFF BUT THEY DIDN'T GET IT SAID MR DICKSON INSTEAD IT WAS ACTUALLY IN THE LAST HOUR OF TRADING THAT PRICES BROKE THROUGH 21 SUCH STRENGTH LATE IN THE DAY PROMPTED A DEBATE ON WHETHER PRICES WILL CONTINUE HIGHER IN TODAY'S TRADING OR WHETHER PROFITTAKING WILL WHITTLE SOME OF THE GAINS FROM YESTERDAY SHOULD PRICES BEGIN TO SLIDE 2075 IS LIKELY TO BECOME A LEVEL OF SUPPORT SEVERAL MARKET SOURCES SAID ACTING AS A TECHNICAL FLOOR JUST AS IT HAS RECENTLY BEEN SEEN AS A CEILING IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS ROSE AMID CONTINUING SPECULATION ABOUT HOW THE WHITE HOUSE PLANS TO RESOLVE THE RUSSIAN GRAIN CREDIT CRISIS THE WHEAT CONTRACT FOR DELIVERY IN MAY AT THE CHICAGO BOARD OF TRADE SLIPPED 275 CENTS TO 34175 A BUSHEL INDUSTRY SOURCES SAID OFFICIALS OF SEVERAL US GRAIN EXPORTERS ARE SLATED TO MEET WITH AGRICULTURE SECRETARY MIKE ESPY AS EARLY AS TODAY TO DEBATE HOW TO FASHION A FOOD AID PACKAGE FOR RUSSIA AS WELL AS HOW TO RESTRUCTURE RUSSIA'S GRAIN DEBT RUSSIA HAS BEEN SPREADING THE WORD AMONG GRAIN TRADERS THAT IT NEEDS TO REPLENISH ITS DOMESTIC GRAIN SUPPLIES QUICKLY RUSSIAN OFFICIALS REPORTEDLY HAVE TOLD SOME US GRAIN FIRMS THAT MOSCOW WANTS TO RENEGOTIATE THE TERMS OF GRAINBUYING ORDERS THAT WERE BLOCKED BY ITS CREDIT PROBLEMS LAST FALL RUSSIA REPORTEDLY WAS UNABLE TO TAKE DELIVERY OF ORDERS FOR 600000 METRIC TONS OF US WHEAT AND ONE MILLION METRIC TONS OF US CORN PRECIOUS METALS PRECIOUS METALS FUTURES PRICES CLOSED GENERALLY LOWER IN LACKLUSTER MOSTLY TECHNICAL TRADING BROKERS AND ANALYSTS SAID AFTER TWO DAYS OF STRONG VOLATILITY IN THE PLATINUM AND PALLADIUM MARKETS THE TWO WHITE METALS BOTH SHED 10 CENTS AN OUNCE IN THEIR ACTIVELY TRADED FUTURES CONTRACTS ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY CLOSED AT 34140 AN OUNCE AND PALLADIUM FOR JUNE DELIVERY SETTLED AT 10355 AN OUNCE NEWS THAT ALLIEDSIGNAL HAD INTRODUCED A NEW CATALYTIC CONVERTER SYSTEM USING PALLADIUM EXCLUSIVELY NO LONGER SEEMS TO BE AFFECTING PRICES TRADERS SAID IN OTHER PRECIOUS METAL ACTIVITY GOLD FOR APRIL DELIVERY CLOSED AT 32960 AN OUNCE DOWN 10 CENTS ON THE COMMODITY EXCHANGE TRADERS SAID GOLD'S WEAKER TONE IN RECENT DAYS REFLECTS CONCERN ABOUT WEAK ECONOMIC PROSPECTS IN EUROPE AND JAPAN GOLD A CLASSIC HEDGE AGAINST INFLATION TENDS TO STRENGTHEN AMID SIGNS OF ACCELERATING GROWTH WORLDWIDE COFFEE DESPITE RECENT REPORTS OF GROWING CONFIDENCE AMONG PRODUCERS ABOUT PROSPECTS FOR A NEW QUOTA AGREEMENT COFFEE PRICES REMAIN WEAK TRADERS SAY THE MAJOR HURDLE FOR COFFEE FUTURES REMAINS HUGE STOCKPILES STORED IN CERTIFIED US WAREHOUSES THERE ARE A LOT OF MIXED SIGNALS HITTING THE MARKET THAT'S WHY WE'RE SEEING SO MUCH CHOPPY ACTION SAID JUDITH GANES A SENIOR COMMODITY ANALYST WITH MERRILL LYNCH WE SIMPLY HAVEN'T SEEN ENOUGH DRAWDOWN IN STOCKS TO MOVE PRICES UP SHE SAID MS GANES ALSO SAID THERE IS WIDESPREAD SKEPTICISM THAT PRODUCERS WILL REACH A CONSENSUS ON A NEW EXPORT ACCORD THIS YEAR ON THE COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MAY DELIVERY INCHED UP 030 CENT TO SETTLE AT 6555 CENTS A POUND 9303050028 930305 BUSINESS BRIEF COLLINS INDUSTRIES SAYS EXECUTIVE RESIGNS AS PROBE CONTINUES HUTCHINSON KAN COLLINS INDUSTRIES INC SAID ITS CHIEF FINANCIAL OFFICER HAS RESIGNED AND TWO STAFF ACCOUNTANTS HAVE BEEN SUSPENDED AS AN INVESTIGATION INDICATES NET INCOME FOR FISCAL 1992 WAS OVERSTATED BY AN ESTIMATED 72 THE COMPANY SAID THE PROBE BY A COMMITTEE OF OUTSIDE DIRECTORS BEGAN AFTER THE CONTROLLER OF A COLLINS UNIT QUESTIONED ACCOUNTS PAYABLE RECORDS FOLLOWING COLLINS'S ANNUAL MEETING LAST FRIDAY ARTHUR ANDERSEN & CO HAS WITHDRAWN ITS 1992 AUDIT OPINION AND IS ASSISTING IN RESTATING THE FISCAL YEAR RESULTS AND THE COMPANY'S LENDERS HAVE WITHHELD ACTION PENDING FURTHER INVESTIGATION RESULTS THE AMBULANCE MAKER SAID THE INVESTIGATION CONTINUES PRESIDENT DONALD COLLINS SAID JOSEPH S HEBB 44 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER AND TREASURER AND IS ASSISTING THE INVESTIGATION THE COMPANY SAID MR HEBB COULDN'T BE REACHED FOR COMMENT MR COLLINS SAID THE INVESTIGATION TO DATE HAS INDICATED THAT 12 MILLION OF FOURTHQUARTER VENDOR PAYABLES IN THE COMPANY'S WHEELED COACH SUBSIDIARY WEREN'T PROPERLY RECORDED CAUSING AN OVERSTATEMENT OF NET BY ABOUT 762000 COLLINS REPORTED EARNINGS OF NEARLY 11 MILLION OR 20 CENTS A SHARE FOR THE FISCAL YEAR ENDED OCT 31 THE COMPANY SAID IT BELIEVES INVOICES HAVE BEEN PROPERLY RECORDED FOR THE FIRST QUARTER OF FISCAL 1993 MR COLLINS SAID HE WASN'T PART OF THE INVESTIGATION COMMITTEE AND DIDN'T KNOW WHETHER THE OVERSTATED EARNINGS RESULTED FROM NEGLIGENCE OR SOME PURPOSE I'M SURE THAT WILL BE ONE OF THE RESULTS OF THE INVESTIGATION REPORT HE SAID IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COLLINS FELL 25 CENTS TO 375 THE COMPANY'S STOCK CLOSED AT 5 LAST FRIDAY THE LAST TRADING DAY BEFORE THE OVERSTATEMENT ALLEGATION WAS ANNOUNCED MONDAY 9303050027 930305 REVIEW & OUTLOOK EDITORIAL THE PLEASURES OF PENANCE ITALY'S EVERGROWING CORRUPTION SCANDALS HAVE MADE US EAGER FOR THIS SPRING'S MILAN FASHION SHOWS DESIGNER HANDCUFFS SHEER PRISON OVERALLS FOR FORMER CABINET MINISTERS ACCESSORY HALOS SURE TO IMPRESS ANY MAGISTRATE INDEED MILAN'S LEADING DESIGNERS OF READYTOWEAR ARE RESPONDING TO THE DEMANDS OF THEIR CLIENTELE AND PRODUCING LINES OF CLOTHING IN ACCORD WITH THE REGION'S BRIBERY INVESTIGATIONS A REPORT FROM REUTERS INFORMS US THAT THE LATEST FASHIONS DEMONSTRATE A KEEN SENSITIVITY TO ITALY'S MORAL AND ECONOMIC WOES GLOOMY COLORS ARE IN BLACK CAPES OVER WOOLLY LEGGINGS AND LONG KNIT SKIRTS THE BASIC BLACK TURTLENECK IS ONCE AGAIN THE STAPLE MODELS LOOK AS IF THEY ARE WEARING JUDGE'S ROBES WE SUPPOSE THIS IS BETTER THAN LAST YEAR'S CRAZE WHEN ENVIRONMENTALISM WAS LA MODE AND MODELS HAD TO TRAIPSE DOWN THE RUNWAYS WEARING LEAVES AND STICKS AND WE'LL PASS OVER THE POSSIBILITY THAT THE DESIGNERS ARE MERELY TRIVIALIZING AN IMPORTANT ISSUE AFTER THE WAY BENETTON HAS RAISED TRIVIALIZING POLITICS TO AN ART FORM THIS STUFF SOUNDS POSITIVELY INTELLIGENT WE'RE STRUCK INSTEAD BY THE PLEASURES OF PENANCE THE FLASHBULBS ARE GOING OFF AMID A MOOD OF GENERAL ATONEMENT THIS SEASON SIGNALS A RETURN TO FUNDAMENTALS DIOR DESIGNER GIANFRANCO FERRE TOLD REUTERS CLOTHES WILL SIMPLY BE A FORM OF EXPRESSION OF COMMUNICATION THEY ARE NO LONGER EPHEMERAL REMEMBER THAT NEXT YEAR GIANNI VERSACE WAS EVEN MORE EMPHATIC WHAT YEARS OF HYPOCRISY WE ALL SAW IN MILAN ALL THOSE NECKTIES AND FURS I HOPE WE CAN BE MORE RELAXED AND HONEST WITH OURSELVES THE NEED TO LEARN FROM THE VANITIES AND SINS OF THE PAST SEEMS TO BE ELEMENTAL IN HUMAN NATURE AND IT IS NICE TO SEE THE NEED PLAYED OUT IN EVEN THE MOST SECULAR MILIEU WE TAKE THE DESIGNERS AT THEIR WORD WHEN THEY SAY THEY ARE STRIVING TO DISCOVER ETERNAL VERITIES EVEN THOUGH WE ARE NOT SURE THAT SHIFTING FROM BRIGHT COLORS TO DARK FROM SHORT SKIRTS TO LONG QUALIFIES AS MORAL REGENERATION OF THE HIGHEST ORDER WHEN SAVONAROLA CHAMPIONED PENITENCE CENTURIES AGO IN FLORENCE IT WAS CLEAR WHO NEEDED TO FEEL PENITENT THE MISERABLE SINNER THE INDIVIDUAL NOWADAYS GUILT HAS BECOME COLLECTIVIZED MR FERRE WAS AMONG THOSE EMPHASIZING THAT THE FASHION WORLD WAS UNTOUCHED BY POLITICAL CORRUPTION THE FASHION WORLD IS IMMUNE TO THE SCANDAL HE SAID TO WHAT WE HOPE WAS GENERAL SNICKERING THESE DAYS AN ENTIRE CITY OR EVEN A NATION IS SAID TO BE OVERCOME BY SAY GREED OR VICE ONE SEES THE RISE OF THE ACCUSATORY WE WHEN SOMEONE SAYS WE WERE GREEDY OFTEN THEY MEAN YOU WERE GREEDY MEANING THEIR POLITICAL OR CULTURAL OPPONENTS PENANCE IS CERTAINLY A DELICIOUS THING WHEN IT CAN BE WORN IN THE NAME OF SOMEBODY ELSE'S SINS IT'S EVEN BETTER WHEN IT CAN BE DISPLAYED UP ON A RUNWAY RATHER THAN FELT AS SHAME IN SOME PRIVATE ROOM A HARSHER JUDGE THAN US MIGHT SAY THAT TODAY'S MILANESE DESIGNERS ARE AT MOST EXCHANGING PHYSICAL VANITY FOR MORAL VANITY PENANCE AS A FASHION STATEMENT SEEMS TO COME WITH RECESSION THE UNDERLYING ASSUMPTION IS THAT PROSPERITY IS SOMEHOW ILLGOTTEN AND RECESSIONS ARE THE MODERN FORM OF RETRIBUTION NOW THAT THE ALMIGHTY HAS FORSWORN FLOODS THIS BRINGS FORTH INEVITABLE CRIES FOR SACRIFICE ESPECIALLY FROM POLITICAL LEADERS WE'VE ALWAYS BEEN SUSPICIOUS OF ECONOMIC POLICIES THAT ARE JUSTIFIED WITH QUASIRELIGIOUS PHRASING BELIEVING THAT MORAL ACCOUNTS SHOULD BE SETTLED WITH ONE'S CONSCIENCE OR GOD RATHER THAN VIA A FISCAL POLICY WHEN POLITICIANS CALL FOR SACRIFICE IT'S RARELY THE GOVERNMENT THAT ENDS UP DOING THE SACRIFICING SECULAR RELIGIONS TEND TO BE CONVENIENTLY STRIPPED OF RIGOR NONETHELESS THE RELIGIOUS IMPULSE IS FOREVER AND WE LOOK FORWARD TO THE DAY WHEN A FULL LINE OF SACKCLOTH IS FEATURED ON THE COVER OF VOGUE 9303050026 930305 ENTERPRISE FAST TRACK ATMEL HARNESSES CASH SKILL TO BATTLE BIG CHIP MAKERS TINY STARTUP CATERS TO THE PORTABLE MARKET AND AVOIDS RED INK BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IN THE CROWDED SEMICONDUCTOR INDUSTRY MOST LITTLE GUYS CAN'T COMPETE HEADTOHEAD WITH SUCH GIANTS AS INTEL CORP A MAKER OF THE TINY CHIPS THAT GIVE COMPUTERS MEMORY AND PROCESSING CAPABILITIES BUT ATMEL CORP A SMALL CHIP MAKER IN SAN JOSE CALIF STANDS OUT AS AN EXCEPTION IT IS THRIVING BY CONCENTRATING ON A TECHNOLOGY THAT HELPS GIVE ELECTRONIC EQUIPMENT A CHARACTERISTIC THAT IS IN HOT DEMAND PORTABILITY BY DEVELOPING THIS TECHNOLOGY AND FINDING WAYS TO AVOID HEFTY CAPITAL SPENDING AT THE OUTSET THE COMPANY ALSO ACHIEVED AN ALLTOORARE FEAT IT IS ONE OF THE RELATIVELY FEW STARTUPS THAT HAVE NEVER BEEN IN THE RED PROFITABLE SINCE IT BEGAN IN 1985 ATMEL REPORTED 1992 REVENUE OF ABOUT 140 MILLION AN EIGHTFOLD INCREASE FROM THE 17 MILLION FIVE YEARS EARLIER BECAUSE ATMEL'S CHIPS USE LESS BATTERY POWER THAN OTHERS THEY HELP MANUFACTURERS DOWNSIZE PORTABLE GOODIES SUCH AS LAPTOP COMPUTERS AND CELLULAR TELEPHONES WE WANTED TO SERVE THE PORTABLE EQUIPMENT MARKET AND LOW VOLTAGE WAS CENTRAL TO THAT EXPLAINS GEORGE PERLEGOS ATMEL'S FOUNDER AND CHIEF EXECUTIVE OFFICER MR PERLEGOS A 42YEAROLD GREEK IMMIGRANT LEFT A DOCTORAL PROGRAM IN ELECTRICAL ENGINEERING AT STANFORD UNIVERSITY IN 1978 TO JOIN INTEL FASCINATED BY CHIP DESIGNS THAT IMPROVED MEMORY MR PERLEGOS SAYS HE QUIT INTEL IN 1981 WHEN THE COMPANY BEGAN FOCUSING INSTEAD ON PROCESSING TECHNOLOGIES THAT YEAR HE AND SEVERAL OTHER INTEL ENGINEERS STARTED SEEQ TECHNOLOGY INC TO DESIGN AND PRODUCE CHIPS THAT ENHANCED THE MEMORY OF COMPUTERS AND OTHER ELECTRONIC GEAR MR PERLEGOS'S AFFILIATION WITH SEEQ ALSO LASTED THREE YEARS WHEN HE RESIGNED IN 1984 AFTER A SPATE OF MANAGERIAL DISPUTES HE TOOK ALONG A CROP OF THE CONCERN'S BEST ENGINEERS HE SAYS THAT GROUP STARTED ATMEL WITH 30000 SEVERAL THINGS WERE KEY TO ATMEL'S EARLY SUCCESS MR PERLEGOS AND KRIS CHELLAM ITS CHIEF FINANCIAL OFFICER RECALL ATMEL DEFIED THE INDUSTRY'S CONVENTIONAL WISDOM THAT CHIP MAKERS HAD TO OWN THE FOUNDRIES KNOWN AS FABS WHERE CHIPS ARE PRODUCED RATHER THAN SINK MONEY INTO SUCH A PRICEY UNDERTAKING ATMEL LEASED FABS FROM BIGGER COMPANIES SUFFERING FROM EXCESS CAPACITY ATMEL DIDN'T OWN A FAB UNTIL 1989 WHEN IT BOUGHT A PLANT FROM HONEYWELL INC FOR 15 MILLION ATMEL HAS SINCE SPENT 50 MILLION UPDATING THAT FACILITY WHICH OFFICIALS SAY OFFERS ENOUGH CAPACITY FOR THE COMPANY TO ACHIEVE ANNUAL REVENUE OF 300 MILLION AND INSTEAD OF GOING TO BANKS OR VENTURE CAPITALISTS FOR FINANCING ATMEL RAISED CASH BY CUSTOMIZING CHIPS FOR CORPORATE CUSTOMERS THIS ALLOWED ATMEL TO REMAIN LARGELY IN THE HANDS OF ITS EMPLOYEES THEY INITIALLY OWNED 60 OF THE STOCK AND TODAY OWN 40 MR PERLEGOS SAYS THAT EXTENSIVE EMPLOYEE OWNERSHIP HELPED HIM TO ATTRACT TOP TALENT KEEP MORALE HIGH AND MAINTAIN LOW SALARIES UNTIL ATMEL'S SALES IMPROVED BY INITIALLY RECRUITING A CADRE OF HIGHLY SKILLED ENGINEERS MR PERLEGOS SAYS ATMEL ALSO WAS ABLE TO SNARE MILITARY CONTRACTS WHOSE RIGOROUS QUALITY CONTROLS USUALLY PUT THEM OUT OF REACH FOR SMALL COMPANIES ALL OF THIS ENABLED ATMEL TO USE ITS MONEY AND TALENT TO IMPROVE ITS CHIPS IT NOW MAKES THE ONLY THREEVOLT FLASH CHIP ON THE MARKET RIVAL PRODUCTS REQUIRE FIVE TO 12 VOLTS FLASH CHIPS PROCESS INFORMATION RAPIDLY ARE EASILY REPROGRAMMED AND RETAIN DATA EVEN WHEN A COMPUTER LOSES POWER AS A RESULT ATMEL IS GAINING MARKET SHARE IT ACCOUNTS FOR ABOUT 5 OF THE 250 MILLION FLASHCHIP MARKET INTEL HOLDS ABOUT 69 AND ADVANCED MICRO DEVICES INC HAS ABOUT 19 ACCORDING TO DATAQUEST INC A RESEARCH FIRM IN SAN JOSE CALIF BUT INTEL HAS BEEN LOSING MARKET SHARE TO ATMEL AND ADVANCED MICRO IN 1991 INTEL HAD ABOUT 86 OF THE MARKET DATAQUEST SAYS ATMEL'S COMPETITION IS ABOUT TO HEAT UP HOWEVER INTEL IS RUSHING TO EXPAND ITS FLASHCHIP PRODUCTION CAPACITY BY 20 AT ITS ALBUQUERQUE NM FAB WHICH WILL BEGIN MAKING ONLY FLASH CHIPS BY THE END OF 1994 WE SEE IT AS AN IMPORTANT MARKET SAYS INTEL SPOKESMAN HOWARD HIGH WE'RE SCRAMBLING TO TAKE ADVANTAGE OF THE EXTRAORDINARY DEMAND FOR FLASH CHIPS ADAVNCED MICRO SAYS IT PLANS TO OPEN A 750 MILLION FLASH CHIP FAB IN JAPAN IN 1995 CONSULTANTS SAY IT WON'T BE HARD FOR INTEL AND ADVANCED MICRO TO DEVISE THEIR OWN THREEVOLT CHIPS AND THAT THE RIVALS HAVE THE RESOURCES TO VASTLY OUTPRODUCE ATMEL OFFICIALS OF BOTH CONCERNS AGREE FOR ATMEL TO REMAIN COMPETITIVE CONSULTANTS SUGGEST THAT THE COMPANY DO WHAT IT HAS ALWAYS DONE BEST INNOVATE THROUGH A JUDICIOUS COMBINATION OF CASH AND TALENT ATMEL'S STRONG CASH FLOW ENABLED IT TO AVOID THE EQUITY MARKETS UNTIL 1991 WHEN IT OFFERED THE PUBLIC SHARES FOR 13 EACH LATE YESTERDAY THE STOCK WAS QUOTED AT 18125 A SHARE DOWN 125 CENTS IN OVERTHECOUNTER TRADING ATMEL STILL SITS ON A 25 MILLION CASH PILE AND HOLDS 51 MILLION IN LONGTERM MARKETABLE SECURITIES MR CHELLAM SAYS THE COMPANY PLANS TO KEEP SPENDING HEAVILY ON RESEARCH AND DEVELOPMENT POURING AT LEAST 10 OF ITS REVENUE INTO THIS AREA LAST YEAR R&D CONSUMED 18 MILLION ABOUT 13 OF REVENUE IF YOU'RE A NICHE PLAYER PURSUING NEW PRODUCT DEVELOPMENT THAT'S YOUR LIFEBLOOD THE EXECUTIVE ADDS EVENTUALLY ATMEL WILL HAVE TO FIND WAYS TO BOOST ITS PRODUCTION CAPACITY ATMEL NOW RELIES ON TEXAS INSTRUMENTS INC AS A BACKUP SOURCE IN CASE IT CAN'T MEET DEMAND ATMEL MAY NEED TO FIND OTHER MANUFACTURING PARTNERS IF IT GROWS BEYOND 300 MILLION IN SALES THE TECHNOLOGY IS SO ADVANCED THAT THERE IS NO COMPANY THAT CAN AFFORD TO FUND THE COMPLETE INFRASTRUCTURE BY ITSELF AS EVEN IBM HAS LEARNED SAYS WILL STRAUSS A CONSULTANT WITH FORWARD CONCEPTS CO IN TEMPE ARIZ PARTNERSHIPS WILL BE THE KEY TO SUCCESS IN THE '90S 9303050025 930305 LAW LEGAL BEAT SUIT TO DECIDE IF DISABILITIES ACT BARS REFUSAL TO PAY FOR AIDS CARE BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL IN A COURTHOUSE SHOWDOWN THAT COULD ULTIMATELY AFFECT MANY BUSINESSES WITH SELFINSURED MEDICAL PLANS AN EMPLOYEEBENEFIT FUND IS ARGUING THAT IT DIDN'T VIOLATE FEDERAL ANTIDISCRIMINATION LAW WHEN IT REFUSED TO PAY FOR AIDS TREATMENTS THE DISPUTE INVOLVES AN AREA OF LAW LEFT OPEN LAST YEAR BY THE US SUPREME COURT THE HIGH COURT SAID THE FEDERAL BENEFITS LAW ALLOWS SELFINSURED COMPANIES TO YANK THE HEALTH INSURANCE OF EMPLOYEES WITH AIDS BUT THE COURT DIDN'T ADDRESS WHETHER THE AMERICANS WITH DISABILITIES ACT OF 1990 WHICH COVERS AIDS ALLOWS SUCH A MOVE WHAT WE HAVE HERE IS A COLLISION COURSE BETWEEN THE ADA AND HEALTH BENEFITS SAID ROGER M LEVIN A NEW YORK ATTORNEY FOR THE FUND WHICH PROVIDES HEALTH BENEFITS TO SOME NEW YORK CONSTRUCTION AND ASBESTOS WORKERS THE LAWSUIT SEEKS ANSWERS TO IMPORTANT LEGAL QUESTIONS IF THE US SUPREME COURT EVENTUALLY RULES ON THE CASE IT COULD AFFECT ALL SELFINSURED MEDICAL PLANS WHICH IN 1991 WERE USED BY 65 OF US COMPANIES ACCORDING TO A SURVEY OF 2409 EMPLOYERS BY CONSULTING FIRM A FOSTER HIGGINS A NEW YORK SUBSIDIARY OF INSURANCE BROKER JOHNSON & HIGGINS THE SUIT WON'T INVOLVE BUSINESSES THAT BUY PRIVATE INSURANCE THEIR INSURERS ARE COVERED BY STATE REGULATIONS WHICH VARY IN PROHIBITING OR ALLOWING INSURANCE COMPANIES TO CUT OFF COVERAGE FOR AIDS CARE IN THE SUIT FILED THIS WEEK AGAINST TWO FUND BENEFICIARIES WITH AIDSRELATED AILMENTS AS WELL AS THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THE FUND CONTESTS A RULING BY THE FEDERAL ADMINISTRATIVE AGENCY THAT IT IS VIOLATING THE AMERICANS WITH DISABILITIES ACT THE EEOC DECISION IN JANUARY WAS THE FIRST TO FIND THAT THE DISABILITY ACT DOES NOT ALLOW AIDS BENEFITS TO BE WITHDRAWN THE BENEFITS CUTOFF GREW OUT OF ECONOMIC DESPERATION NOT DISCRIMINATION SO IT FELL UNDER AN EXCEPTION TO THE ANTIDISCRIMINATION ACT ARGUES THE FUND THE MASON TENDERS DISTRICT COUNCIL WELFARE FUND THE FUND SAYS IT LOST 197 MILLION IN 1990 BECAUSE OF HUGE HEALTHCARE BILLS AND A DEARTH OF CONSTRUCTION WORK AS A RESULT THE FUND SAYS IT CUT OFF REIMBURSEMENTS NOT ONLY FOR AIDS TREATMENTS BUT ALSO FOR ROUTINE PHYSICALS DENTAL AND EYE CARE AND ORGAN TRANSPLANTS THE FUND ALSO CONTENDS IN THE SUIT FILED IN FEDERAL COURT IN MANHATTAN THAT BENEFIT TRUSTS SUCH AS THE FUND AREN'T EVEN COVERED BY THE ANTIDISCRIMINATION ACT THE EEOC RULING HAD BEEN PRAISED BY ADVOCATES FOR PEOPLE WITH AIDS I DON'T SEE ANY REASON TO SINGLE OUT AIDS SAID THOMAS KENDRICKS A STAFF ATTORNEY AT THE GAY MEN'S HEALTH CRISIS NEW YORK WHO IS REPRESENTING THE TWO WORKERS WHY NOT HEART DISEASE WHY NOT CANCER ARE THEY CHEAPER ILLNESSES TO TREAT THE LANGUAGE OF THE ANTIDISCRIMINATION ACT AND THE FEDERAL BENEFITS LAW THE EMPLOYEE RETIREMENT INCOME SECURITY ACT DOESN'T SHED MUCH LIGHT ON WHAT COURTS SHOULD DO THERE'S CERTAINLY A LOT OF UNCLARITY IN THE STRUCTURE AND THE LEGISLATIVE HISTORY IS ALSO KIND OF MURKY SAID MARK SCHERZER A NEW YORK ATTORNEY WHO SPECIALIZES IN AIDS AND EMPLOYEEBENEFITS ISSUES ALTHOUGH THERE ARE REASONABLE ARGUMENTS UNDER THE ANTIDISCRIMINATION ACT I'M NOT CONFIDENT AT ALL THAT WE'LL SUCCEED ONE POTENTIAL PROBLEM FOR THE WORKERS' ATTORNEYS IS THAT AIDSCARE BENEFITS WERE CUT OFF BEFORE THE DISABILITY ACT BECAME LAW THE ATTORNEYS FOR THE WORKERS ARE ARGUING THAT DISCRIMINATION IS CONTINUING BECAUSE THE WORKERS' BENEFITS ARE STILL BEING DENIED A GROWING NUMBER OF SELFINSURED COMPANIES HAVE CUT OFF BENEFITS FOR AIDS TREATMENTS IN THE PAST FEW MONTHS ACCORDING TO ADVOCATES FOR PEOPLE WITH AIDS NO STATISTICS ARE AVAILABLE HOWEVER TERRENCE P DONAGHEY JR A FORMER ASBESTOS HANDLER WHO IS A PLAINTIFF IN THE SUIT SAID HIS LONGTIME PHYSICIAN HAS REFUSED TO SEE HIM SINCE HE LOST HIS BENEFITS LAST YEAR IT'S BAD ENOUGH THAT I HAVE A TERMINAL DISEASE THAT'S MY FATE BUT TO BE TOLD I CAN'T GET THE MEDICAL CARE THAT I NEED IS HORRIFYING HE SAID I WANT PEOPLE TO KNOW IT'S HARD IT'S VERY HARD AN ATTORNEY DIDN'T VIOLATE ANY LAWS OR ETHICS RULES WHEN HE TOLD A CLIENT WHERE TO BUY EQUIPMENT FOR SECRETLY TAPING CONVERSATIONS A NEW YORK FEDERAL MAGISTRATE JUDGE RULED THE CLIENT TAPED 43 CONVERSATIONS WITH STAFFERS AND TOP EXECUTIVES AT HIS WORKPLACE AC&R ADVERTISING INC A UNIT OF SAATCHI & SAATCHI CO IN 1991 THE MAN A DIRECTOR OF CREATIVE SERVICES AT AC&R FILED AN AGEDISCRIMINATION LAWSUIT AGAINST THE AGENCY IN NEW YORK IT IS LEGAL FOR ONE PERSON TO TAPERECORD ANOTHER SECRETLY THE AD AGENCY HOWEVER ARGUED THAT THE TAPES SHOULDN'T BE ADMITTED INTO EVIDENCE BECAUSE THE LEGAL PROFESSION'S DISCIPLINARY RULES PROHIBIT LAWYERS FROM ENGAGING IN DISHONESTY FRAUD DECEIT OR MISREPRESENTATION THE MAGISTRATE JUDGE RULED HOWEVER THAT ALTHOUGH THE ATTORNEY CAME PERILOUSLY CLOSE TO CROSSING THE LINE OF CIRCUMVENTING THE DISCIPLINARY RULES HE DID NOT ACTUALLY CROSS OVER BECAUSE HE DIDN'T DIRECTLY DISCUSS THE TAPINGS WITH THE CLIENT OR TELL THE CLIENT TO MAKE THE TAPES FEW SECRETTAPING CASES HAVE GONE BEFORE COURTS AND ATTORNEYDISCIPLINE BOARDS BUT USUALLY LAWYER INVOLVEMENT IN SUCH TAPING HAS BEEN DECLARED UNETHICAL SAID MONROE H FREEDMAN AN ETHICS PROFESSOR AT HOFSTRA UNIVERSITY SCHOOL OF LAW HE THINKS THE RULING IMPLIES THAT THE BAR ASSOCIATION DISCIPLINARY OPINIONS ARE WRONG AND THAT'S WHY I APPLAUD IT HE SAID TAPING LEADS TO MORE TRUTH ATTORNEYS INVOLVED IN THE SUIT SAID THE PARTIES HAD SIGNED AN AGREEMENT NOT TO COMMENT PUBLICLY ON THE CASE LA MOVE CYNTHIA M COHEN A LITIGATOR WILL BECOME A PARTNER IN THE LOS ANGELES OFFICE OF MORGAN LEWIS & BOCKIUS A 650LAWYER FIRM MS COHEN WHO HAS A NATIONAL BANKRUPTCY PRACTICE HANDLES COMPLEX COMMERCIAL DISPUTES SHE IS LEAVING THE LOS ANGELES OFFICE OF THE NEW YORK LAW FIRM HUGHES HUBBARD & REED WHERE SHE WAS ALSO A PARTNER 9303050024 930305 INTERNATIONAL WORLD ECONOMY WASHINGTON SHOULDN'T BE QUICK TO COPY FOREIGN BUSINESSINTERVENTION TACTICS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON VICE PRESIDENT ALBERT GORE'S PROSE DOESN'T EXACTLY SING BUT HE MAKES HIS POINT THE JAPANESE AND THE GERMANS ARE NOW OPENLY SAYING THAT THE BIGGEST NEW MARKET IN THE HISTORY OF WORLD BUSINESS IS THE MARKET FOR NEW PRODUCTS TECHNOLOGIES AND PROCESSES THAT FOSTER ECONOMIC PROGRESS WITHOUT ENVIRONMENTAL DESTRUCTION MR GORE TOLD CHEERING HIGHTECH WORKERS IN CALIFORNIA'S SILICON VALLEY LAST WEEK HE AND PRESIDENT CLINTON TOLD THEM THAT US BUSINESSES MUST PLUNGE INTO SUCH NEW GLOBAL MARKETS BEFORE FOREIGN RIVALS LOCK THEM UP BUT BOTH THINK US COMPANIES NEED HELP TO DO THAT SO THEY OUTLINED A 17 BILLION PLAN TO FINANCE RESEARCH AND DEVELOPMENT DESIGNED TO MAKE AMERICAN COMPANIES TOUGHER COMPETITORS WORLDWIDE UNDERLYING WASHINGTON'S PUSH TO HELP NEW INDUSTRIES IS THE ASSUMPTION THAT OTHER GOVERNMENTS DO A GOOD JOB HELPING THEIRS OFTEN CITED ARE JAPAN AND ITS ELITE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SOME CALL MITI THE KIND OF AGENCY THE US SHOULD INVENT FOR ITSELF BUT SKEPTICS SAY OTHERWISE CONTENDING THAT WASHINGTON HASN'T GOT THE SKILL AGILITY OR EXPERIENCE NEEDED TO LEAD INDUSTRY ANYWHERE WORTHWHILE AND THOSE WHO KNOW JAPAN BEST ARE NO MORE ENTHUSIASTIC ABOUT COPYING ITS WAYS THAN THEY ARE FOR EMULATING OTHER INTERVENTIONIST STATES LIKE FRANCE OR GERMANY I'M TERRIFIED AT THE THOUGHT OF OUR BUREAUCRATS TRYING TO MANAGE BUSINESS IN THAT WAY SAYS A CORPORATE ADVISER WITH INTERNATIONAL EXPERIENCE CRITICS CITE TWO BROAD OBJECTIONS FIRST THEY DOUBT IF IT WOULD BE ACCEPTED BY AMERICAN SOCIETY WHICH TRADITIONALLY IS SUSPICIOUS OF GOVERNMENT EXCEPT DURING NATIONAL EMERGENCIES AND THERE ISN'T ONE NOW SECOND THEY SAY THE RECORD OF FOREIGN INTERVENERS ISN'T PARTICULARLY GOOD EVEN MITI'S NET CONTRIBUTION TO JAPAN'S POSTWAR SUCCESS IS A MATTER OF DEBATE THEY NOTE THE US GOVERNMENT UNLIKE THOSE IN MOST INDUSTRIAL STATES HAS A HANDSOFF HERITAGE EXCEPT DURING TIMES OF DEPRESSION OR WAR IT USUALLY DOESN'T BY WORLD STANDARDS MEDDLE DEEPLY INTO CITIZENS' PRIVATE OR BUSINESS AFFAIRS AND MOST PEOPLE SEEM TO LIKE IT THAT WAY NONE MORE SO THAN BUSINESSMEN THEY AREN'T LIKELY TO WELCOME OFFICIAL EFFORTS TO CHOOSE THEIR PRODUCTS EVEN WITH RESEARCH FUNDS ATTACHED I'M AGAINST TRYING TO TRANSPLANT THAT LEVEL OF GOVERNMENT INVOLVEMENT INTO A CULTURE WHICH IS GOING TO BE RESISTANT SAYS JEFFREY E GARTEN OF COLUMBIA UNIVERSITY'S GRADUATE BUSINESS SCHOOL IN ADDITION THERE'S NO GREAT ADMIRATION FOR THE US AGENCIES THAT WOULD GET THE JOB NOTABLY THE DEPARTMENT OF COMMERCE OTHER COUNTRIES' ELITE BUREAUS SUCH AS MITI OR THE FRENCH FINANCE MINISTRY ATTRACT BRIGHT GRADUATES FROM THE BEST SCHOOLS AND GIVE THEM CAREERS WITH GREAT POWER AND PRESTIGE THAT ISN'T THE US TRADITION WHERE BUREAUCRACIES ARE LESS NIMBLE AND SELDOM THE SOURCE OF INNOVATIVE IDEAS ON MANAGING THE ECONOMY IN ANY CASE INTERVENERS ELSEWHERE HAVE A MIXED RECORD MOST EUROPEAN ECONOMIES ARE SADDLED WITH UNPROFITABLE INDUSTRIAL LEGACIES OF OLD STATE POLICIES AND IN JAPAN MITI DID HELP CREATE A SEMICONDUCTOR INDUSTRY BY PROVIDING ENORMOUS AID AND PROTECTION LARGELY AT US EXPENSE BUT IT IS ALSO BACKING WHAT SEEMS TO BE A COSTLY MISTAKE IN THE HIGHDEFINITION TELEVISON FIELD TOKYO SEEMS TO HAVE PICKED WINNERS' AND LOSERS' IN ABOUT EQUAL NUMBERS SAYS A STUDY BY THE JAPAN ECONOMIC INSTITUTE A RESEARCH AGENCY FUNDED BY THE FOREIGN MINISTRY THERE OTHERS ARE LESS KIND YET THERE ARE USEFUL THINGS WASHINGTON COULD DO MANY BUSINESSMEN WOULD WELCOME ALMOST ANYTHING TO IMPROVE EDUCATION AND TRAINING AND JAMES MATEYKA OF BOOZALLEN & HAMILTON CITES A RECENT MITI VENTURE AS ONE WAY GOVERNMENTS CAN BE HELPFUL WHEN THE US WARNED THAT AUTOS SOLD HERE EVENTUALLY MUST MEET STRICTER FUEL EFFICIENCY STANDARDS MITI CONVENED JAPANESE MAKERS TO DISCUSS THE IMPLICATIONS THEY AGREED FUTURE CARS MUST USE MORE LIGHTWEIGHT ALUMINUM BUT THE WEAK JAPANESE ALUMINUM INDUSTRY HAS PROBLEMS WITH FABRICATION SO STEELMAKERS BOUGHT CONTROL AND ARE NOW WORKING ON THE PROBLEM MITI DIDN'T MAKE THIS HAPPEN OR FINANCE IT BUT IT MAY HELP KEEP AUTO MAKERS COMPETITIVE LIKEWISE THERE'S PROBABLY SCOPE FOR MR CLINTON'S PET SMART HIGHWAY SCHEME AS GOVERNMENTS BUILD THE ROADS ANYWAY JAPAN ALREADY HAS AN ELECTRONIC TRAFFIC DATA SYSTEM IN TOKYO AND FOR ITS PART THE EUROPEAN COMMUNITY IS BACKING THE 18COMPANY PROMOTHEUS RESEARCH PROJECT TO COME UP WITH ULTRAMODERN HIGHWAY SYSTEMS WASHINGTON MIGHT FOR EXAMPLE FINANCE LOCAL PILOT PROJECTS TO HELP DECIDE WHICH CONTROL SYSTEMS WORK BEST 9303050023 930305 FINANCING BUSINESS CABLEVISION INDUSTRIES CORP CABLEVISION INDUSTRIES CORP LIBERTY NY SAID IT WILL ISSUE 200 MILLION OF SENIOR DEBENTURES WITH A 925 RATE AND MATURITY IN 2008 THE DEBENTURES ARE NONCALLABLE FOR SEVEN YEARS UNTIL THE DEBENTURES ARE REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THE CABLE TELEVISION COMPANY WILL PAY A HALFPERCENTAGEPOINT PREMIUM ON THE INTEREST RATE MORGAN STANLEY & CO IS SOLE PLACEMENT AGENT FOR THE ISSUE THE COMPANY SAID IT WILL USE MOST OF THE FUNDS TO REDEEM 150 MILLION OF OUTSTANDING 11 1/4 SENIOR SUBORDINATED DEBENTURES DUE 2002 AND THE OTHER FUNDS FOR GENERAL CORPORATE PURPOSES CVI AND ITS AFFILIATES OPERATE CABLE TELEVISION SYSTEMS IN 18 STATES WITH ABOUT 12 MILLION SUBSCRIBERS 9303050022 930305 KMART UNIT COMPLETES PURCHASE TROY MICH KMART CORP'S OFFICEMAX UNIT SAID IT COMPLETED ITS 2638 MILLION PURCHASE OF INTELLIGENT ELECTRONICS INC'S BIZMART CHAIN OF 105 OFFICE PRODUCTS SUPERSTORES WITH THE MOVE THE 93OWNED OFFICEMAX UNIT PASSES STAPLES INC TO BECOME THE NATION'S SECONDLARGEST WAREHOUSESTYLE RETAILER OF OFFICE SUPPLIES WITH 285 OUTLETS IT PLANS TO OPEN 55 MORE OFFICEMAX STORES IN FISCAL 1993 9303050021 930305 ECONOMY LAWMAKERS SEEK AS MUCH AS 50 BILLION MORE IN CUTS THAN THE CLINTON PROPOSAL BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ARE SEEKING ADDITIONAL SAVINGS OF 40 BILLION TO 50 BILLION OVER THE NEXT FIVE YEARS IN ORDER TO BLUNT CRITICISM THAT PRESIDENT CLINTON'S ECONOMIC PLAN FALLS SHORT OF ITS DEFICITREDUCTION TARGETS A PLAN BEFORE THE HOUSE BUDGET COMMITTEE WOULD ADD SPENDING CUTS OF AT LEAST 35 BILLION IN THE FISCAL YEAR BEGINNING OCT 1 AND AS MUCH AS 56 BILLION THROUGH FISCAL 1998 THE SENATE BUDGET COMMITTEE LEADERSHIP IS SOMEWHAT MORE MODEST IN ITS GOALS BUT THERE IS A COMMON DESIRE TO MEET THE INITIAL DEFICITREDUCTION GOALS SET BY THE ADMINISTRATION THE BUDGET RESOLUTION WHICH COMES BEFORE BOTH COMMITTEES NEXT WEEK IS ONLY A BLUEPRINT FOR LATER SPENDING AND TAX LEGISLATION BUT THE DECISIONS NOW WILL AFFECT THE RESOURCES AVAILABLE FOR MANY OF THE PRESIDENT'S DOMESTIC PRIORITIES THE WHITE HOUSE HAS CONSULTED EXTENSIVELY WITH DEMOCRATIC LEADERS AND REMAINS COMFORTABLE WITH STEPS UNDER CONSIDERATION BUT AMONG THE ITEMS BEING DISCUSSED BY LAWMAKERS ARE DELAYING THE ADMINISTRATION'S PLAN TO FULLY FUND THE HEAD START PROGRAM FOR POOR CHILDREN REDUCING SPENDING FOR TWO BIG SCIENCE PROJECTS THE SPACE STATION AND SUPERCONDUCTING SUPERCOLLIDER AND CURTAILING PLANNED INCREASES FOR STUDENT AID FOR HIGHER EDUCATION AND TRANSPORTATION DEMOCRATIC SEN JAMES EXON OF NEBRASKA A SWING VOTE ON THE BUDGET COMMITTEE EVEN SUGGESTS CUTTING OR DELAYING MR CLINTON'S PET PROPOSAL FOR A NATIONAL SERVICE PROGRAM UNDER THAT PROGRAM YOUNG PEOPLE COULD WORK OFF COLLEGE LOANS BY SERVING IN COMMUNITIES AS TEACHERS POLICE OFFICERS OR SOCIAL WORKERS THE PRESIDENT'S INITIATIVES ARE AMONG THE MOST VULNERABLE THINGS OUT THERE RIGHT NOW SAID NEBRASKA REP PETER HOAGLAND A DEMOCRATIC MEMBER OF THE WAYS AND MEANS COMMITTEE HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO ACKNOWLEDGED THAT THERE MAY BE SLIPPAGE IN SOME OF MR CLINTON'S PROPOSALS TO INCREASE WHAT HE CALLS PUBLIC INVESTMENT SPENDING BUT THE MINNESOTA DEMOCRAT CONTENDED THAT MARATHON NEGOTIATIONS WOULD PRODUCE A CONSENSUS DEMOCRATIC APPROACH BY THE TIME THE COMMITTEE IS TO VOTE ON THE ADMINISTRATION'S BUDGET PROPOSAL WEDNESDAY CONSERVATIVE DEMOCRATS ON THE COMMITTEE ARE PRESSING FOR 10 BILLION IN ADDITIONAL CUTS FOR FISCAL 1994 AND 80 BILLION OVER FIVE YEARS THE ADMINISTRATION HAS A NARROWER MARGIN TO WORK WITH ON THE SENATE BUDGET PANEL WHERE DEMOCRATS HOLD A 129 ADVANTAGE MR EXON WHO WANTS MORE SPENDING CUTS BUT COMPLAINS THAT THE ADMINISTRATION'S AGRICULTURE AND DEFENSE CUTS ARE TOO DEEP CAUTIONED THAT HE'S STILL NOT ON BOARD FOR THE COMMITTEE VOTE IN A LARGELY SYMBOLIC MOVE THE BUDGET COMMITTEE LEADERSHIP IS CONSIDERING SCALING BACK ITS ASSUMPTIONS ABOUT REVENUE RAISED FROM THE ADMINISTRATION'S PROPOSED ENERGY TAX IN ORDER TO ACCOMMODATE CONCERNS BY SENS EXON AND SEN KENT CONRAD D ND ABOUT ITS EFFECT ON FARMERS SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN OF GEORGIA MEANWHILE IS EXPECTED TO RAISE CONCERNS ABOUT PROPOSED DEFENSE CUTS IN A SPEECH TODAY MINDFUL OF THIS MR CLINTON HAS COURTED SUPPORT IN THE HOUSE AND LAST WEEK INVITED REP JOHN MURTHA CHAIRMAN OF THE HOUSE APPROPRIATIONS SUBCOMMITTEE ON DEFENSE TO THE WHITE HOUSE TO CONSULT OVER APPLE PIE THE PENNSYLVANIA DEMOCRAT SAID YESTERDAY HE WOULD OPPOSE ANY MORE DEFENSE CUTS THAN THE ADMINISTRATION HAS PROPOSED BUT ACCEPTS THE WHITE HOUSE GOAL FOR THEIR PART REPUBLICANS SOUGHT TO PORTRAY THE ADMINISTRATION PLAN AS IN DISARRAY AMID A CONFLICT BETWEEN MR CLINTON'S BUDGET OFFICE AND THE CONGRESSIONAL BUDGET OFFICE OVER PROJECTED DEFICIT ESTIMATES FIGURES THIS WEEK FROM THE CBO AND THE CONGRESS'S JOINT COMMITTEE ON TAXATION SUGGEST THE PRESIDENT'S PROPOSED SPENDING CUTS AND TAX INCREASES WILL FALL MORE THAN 60 BILLION SHORT OF EXPECTED SAVINGS AND RECEIPTS OVER FIVE YEARS HOUSE GOP BUDGET LEADER JOHN KASICH OF OHIO BLASTED A KEYSTONE KOPS APPROACH TO BUDGETING AND JOINED HIS COUNTERPARTS IN THE SENATE IN AN UNLIKELY BID TO DELAY BUDGET COMMITTEE VOTES HOWEVER REPUBLICANS THEMSELVES ARE DIVIDED ON WHAT APPROACH TO TAKE HOUSE SPEAKER THOMAS FOLEY D WASH SIGNALED HE WILL MAKE IT MORE DIFFICULT FOR THEM BY INSISTING THAT FLOOR DEBATE BE LIMITED TO CHOICES BETWEEN ALTERNATIVE BUDGET PLANS IN THE SENATE WHERE THE POWERS OF THE MAJORITY ARE MORE LIMITED REPUBLICANS WILL HAVE MORE FREEDOM TO OFFER SINGLEISSUE AMENDMENTS THAT MIGHT PICK UP MODERATE AND CONSERVATIVE DEMOCRATIC VOTES WE'RE GOING TO MAKE IT HARD FOR THEM TO STICK WITH CLINTON SAID SEN PHIL GRAMM R TEXAS GREG HITT CONTRIBUTED TO THIS ARTICLE 9303050020 930305 INTERNATIONAL ONO PLANS TO RAISE DIVIDEND TOKYO ONO PHARMACEUTICAL CO A MIDSIZE DRUG MAKER IN JAPAN SAID IT PLANS TO RAISE ANNUAL DIVIDEND PAYMENTS TO 20 YEN 17 CENTS A SHARE FOR THE FISCAL YEAR ENDING MARCH 31 FROM 14 YEN A SHARE THE PREVIOUS YEAR ONO SAID IT WILL PROPOSE THE DIVIDEND INCREASE AT THE SHAREHOLDERS' MEETING SCHEDULED FOR LATE JUNE THE INCREASE IS AIMED TO PASS ON THE COMPANY'S BRISK SALES GROWTH THIS FISCAL YEAR WHICH WAS HELPED BY THE INTRODUCTION OF THE DRUG KINEDAK USED FOR TREATMENT OF DIABETIC COMPLICATIONS AND VEGA USED FOR BRONCHIAL ASTHMA 9303050019 930305 CORRECTIONS & AMPLIFICATIONS BMC SOFTWARE INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MAX WATSON SAID HE WAS UNCOMFORTABLE COMMENTING ON ANALYSTS' FOURTHQUARTER EARNINGS ESTIMATES AT A MEETING EARLIER IN THE WEEK AN ARTICLE YESTERDAY INCORRECTLY STATED HE WAS UNCOMFORTABLE WITH THE ESTIMATES JAMES M BENSON RECENTLY NAMED SENIOR EXECUTIVE VICE PRESIDENT OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF EQUITABLE COS PREVIOUSLY HEADED THE NEW YORK OFFICE OF MANAGEMENT COMPENSATION GROUP A CONSULTING FIRM ON MANAGEMENT COMPENSATION AND OTHER CORPORATE ISSUES THE FIRM WAS INCORRECTLY IDENTIFIED AS MANAGEMENT CONSULTING GROUP IN A WHO'S NEWS ITEM TUESDAY CHEMICAL BANKING CORP'S BOARD RECOMMENDED THAT STAGGERED TERMS FOR DIRECTORS BE ELIMINATED IN FAVOR OF ANNUAL ELECTIONS AS A RESULT SHAREHOLDER ACTIVIST EVELYN Y DAVIS AGREED TO WITHDRAW HER PROPOSAL FOR SUCH A CHANGE AN ARTICLE YESTERDAY OMITTED MS DAVIS'S DECISION COX ENTERPRISES INC OWNS 13 RADIO STATIONS AN INDUSTRY FOCUS ARTICLE WEDNESDAY INCORRECTLY STATED THAT COX OWNS 14 STATIONS ALSO AJIT M DALVI IS SENIOR VICE PRESIDENT MARKETING AND PROGRAMMING AT COX CABLE COMMUNICATIONS THE ARTICLE INCORRECTLY IDENTIFIED HIM AS SENIOR VICE PRESIDENT MARKETING AND ENGINEERING DOROTHY HAMILL INTERNATIONAL INC'S ACQUISITION OF THE ICE CAPADES FROM INTERNATIONAL BROADCASTING CORP WILL BE FUNDED IN PART BY BEN TISDALE CHAIRMAN OF MARTECH USA INC AND NOT BY MARTECH ITSELF IN AN ARTICLE WEDNESDAY IT WAS INCORRECTLY REPORTED THAT MARTECH WOULD PROVIDE FUNDING 9303050018 930305 WHO'S NEWS HARKEN ENERGY CORP HARKEN ENERGY CORP DALLAS DONALD W RAYMOND WAS NAMED TO THE BOARD OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY BRINGING THE BOARD TO SIX MEMBERS MR RAYMOND WAS MOST RECENTLY CHAIRMAN OF CHUSKA RESOURCES CORP ACQUIRED BY HARKEN LAST MONTH 9303050017 930305 WHO'S NEWS CARTER HAWLEY APPOINTS SAM ZELL ITS CHAIRMAN LOS ANGELES CARTER HAWLEY HALE STORES INC NAMED AS CHAIRMAN SAM ZELL WHOSE ZELL/CHILMARK FUND LTD HOLDS A 70 STAKE IN THE RETAILER THE MOVE WAS EXPECTED MR ZELL'S FUND ACQUIRED ITS MAJORITY STAKE IN CARTER HAWLEY AS PART OF A PLAN THAT ALLOWED THE RETAILER TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION IN OCTOBER MR ZELL 51 YEARS OLD SUCCEEDS PHILIP M HAWLEY WHO ANNOUNCED HE WOULD STEP DOWN FROM THE CHAIRMAN AND CHIEF EXECUTIVE POSTS A WEEK AFTER CARTER HAWLEY EMERGED FROM CHAPTER 11 MR HAWLEY 67 HAD STARTED HIS CAREER WITH THE COMPANY IN 1958 HE REMAINS A DIRECTOR LAST MONTH CARTER HAWLEY NAMED DAVID L DWORKIN 49 TO SUCCEED MR HAWLEY AS CHIEF EXECUTIVE EFFECTIVE APRIL 1 THE COMPANY ANNOUNCED THAT MR DWORKIN ALSO NAMED AS PRESIDENT OF CARTER HAWLEY WAS NAMED TO THE BOARD EXPANDING ITS SIZE TO 12 DIRECTORS 9303050016 930305 WHO'S NEWS SEAGRAM CO SEAGRAM CO MONTREAL THIS PRODUCER OF SPIRITS AND OTHER BEVERAGES NAMED ARTHUR SHAPIRO 48 YEARS OLD AS SENIOR VICE PRESIDENT OF MARKETING FOR THE HOUSE OF SEAGRAM THE US DIVISION OF THE COMPANY'S SEAGRAM SPIRITS AND WINE GROUP MR SHAPIRO HAD BEEN SENIOR VICE PRESIDENT OF MARKETING FOR SEAGRAM'S ASIAPACIFIC/GLOBAL DUTY FREE DIVISION 9303050015 930305 WHO'S NEWS BACK BAY RESTAURANT GROUP INC BACK BAY RESTAURANT GROUP INC BOSTON FRANCIS P BISSAILLON WAS NAMED CHIEF FINANCIAL OFFICER OF THIS RESTAURANT CHAIN WHICH IS 40OWNED BY WESTWOOD GROUP INC BOSTON MR BISSAILLON SUCCEEDS NABIL ELHAGE WHO RESIGNED IN OCTOBER MR BISSAILLON WAS PREVIOUSLY CHIEF OPERATING OFFICER OF LA QUINTA MOTOR INNS INC 9303050014 930305 GAP INC PROFIT DECLINED BY 22 IN ITS 4TH PERIOD RIVALS FORCED MARKDOWNS RESULTS FUEL QUESTIONS ABOUT FASHION APPEAL BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL GAP INC WHOSE GROWTH APPEARED UNSTOPPABLE UNTIL RECENTLY SAID FISCAL FOURTHQUARTER EARNINGS TUMBLED 22 AS COMPETITORS FORCED THE RETAILER TO LOWER PRICES IN ADDITION THE SAN FRANCISCO RETAILER'S PROFIT MARGINS SUFFERED FROM THE MARKDOWN OF EXCESS AND POORSELLING MERCHANDISE GAP ALSO BLAMED HIGHER OCCUPANCY COSTS AT SOME STORES FOR PUSHING DOWN ITS VAUNTED PROFIT MARGINS TO 71 AT THE END OF FISCAL 1993 FROM 91 THE PRIOR YEAR THE PROFIT DECLINE FUELED CONCERNS THAT GAP'S LAIDBACK PRACTICAL CLOTHING IS LOSING ITS APPEAL AS CONSUMERS OPT FOR OTHER RETAILERS' MORE FASHIONABLE APPAREL THE FASHION CYCLE IS SHIFTING AWAY FROM BASIC SAID HEIDI R STEINBERG AN ANALYST WITH LEHMAN BROTHERS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GAP SHARES WERE QUOTED AT 32375 DOWN 875 CENTS FOR THE QUARTER ENDED JAN 30 GAP POSTED NET INCOME OF 657 MILLION OR 46 CENTS A SHARE DOWN FROM THE YEAREARLIER 839 MILLION OR 59 CENTS A SHARE SALES AT STORES OPENED AT LEAST A YEAR ROSE 4 AND TOTAL SALES CLIMBED 16 TO 9302 MILLION FROM 8035 MILLION DONALD G FISHER CHAIRMAN AND CHIEF EXECUTIVE OFFICER NOTED THAT DESPITE THE PROFIT DROP THE COMPANY'S SALES AND RETURN ON EQUITY ARE STILL AMONG THE HIGHEST IN THE INDUSTRY GAP'S RETURN ON EQUITY WAS 27 AT YEAR END COMPARED WITH 40 IN FISCAL 1992 MR FISHER ALSO POINTED OUT THAT WHILE THE FLAGSHIP STORES FALTERED THE GAPKIDS BANANA REPUBLIC AND INTERNATIONAL DIVISIONS RECORDED PROFIT GAINS ONLY RECENTLY HAS THE CHAIRMAN BEEN FORCED TO TAKE THE DEFENSIVE WHEN ANNOUNCING GAP EARNINGS IN 1991 GAP STOOD THE RETAIL INDUSTRY ON ITS EAR SAID ROBERT ROTH AN ANALYST WITH MERRILL LYNCH & CO WHILE FRUGAL SHOPPERS SNUBBED THE FASHIONS OFFERED BY DEPARTMENT AND OTHER SPECIALTY STORES THEY FLOCKED TO GAP TO SNAP UP ITS BASIC TSHIRTANDJEANS APPAREL INEVITABLY THOUGH OTHER RETAILERS SOUGHT TO CASH IN ON GAP'S SUCCESS AND BEGAN TO IMITATE THE MERCHANDISE AND UNDERCUT IT IN PRICE DEPARTMENTCHAIN YOUNKERS INC FOR EXAMPLE RECENTLY BRAGGED ABOUT GETTING A LONGSLEEVED BUTTONDOWN SHIRT MADE TO LOOK LIKE A GAP SHIRT AND THEN BEATING GAP'S PRICE BY 8 SUCH MOVES BY COMPETITORS HAVE SENT GAP SCRAMBLING TO KEEP FROM LOSING MARKET SHARE GAP IS SELLING ITS PRODUCTS AT LOWER INITIAL PRICES FOR EXAMPLE IN THE THIRD QUARTER IT DRAMATICALLY LOWERED THE PRICE OF ITS BASIC FIVEPOCKET JEANS TO 28 FROM 38 IT HAS SINCE REGAINED SOME OF THAT LOSS BY LIFTING THE PRICE UP TO 34 MOREOVER GAP'S HOLIDAY APPAREL INCLUDING ESPECIALLY UNPOPULAR WOMEN'S BLAZERS DIDN'T FARE WELL NOR DID ITS TRANSITION LINE WHICH BRIDGES HOLIDAY AND SPRING APPAREL AT THE FIRST OF THE YEAR THE COMPANY WAS FORCED TO MARK DOWN MUCH OF THAT MERCHANDISE WHICH WAS REFLECTED IN ITS ANNOUNCEMENT OF A MEAGER 2 INCREASE IN FEBRUARY SAMESTORE SALES JEFFREY EDELMAN AN ANALYST WITH CJ LAWRENCE NOTED THAT IN 1987 GAP HAD SIMILAR FASHION PROBLEMS BUT THEN REORIENTED ITSELF AND CAME BACK VERY STRONG HE AND OTHER ANALYSTS CONTINUE TO PRAISE THE COMPANY'S MANAGEMENT STRONG LOCATIONS AND LOYAL CUSTOMER BASE STILL ANY REBOUND WILL LIKELY TAKE TIME BECAUSE MANY OF THE COMPANY'S PRODUCTS NEED NINE MONTHS TO A YEAR TO DEVELOP CUSTOMERS WON'T SEE A FRESH CHANGE IN GAP'S CLOTHING UNTIL AT LEAST THE FALL SEASON MR EDELMAN SAID AS IT RAPIDLY EXPANDS ITS STORES THE RETAILER ALSO HAS TO WORRY ABOUT RISING OCCUPANCY COSTS AS SALESPERSQUAREFOOT TAKE A FEW YEARS TO CATCH UP GAP EXPANDED 94 OF ITS 1307 STORES IN 1992 COMPARED WITH 79 IN 1991 ANOTHER 120 ARE PLANNED FOR THIS YEAR FOR FISCAL 1993 NET FELL 83 TO 2107 MILLION OR 147 A SHARE FROM 2299 MILLION OR 162 A SHARE SALES ROSE 18 TO 296 BILLION FROM 252 BILLION 9303050013 930305 ITC RULES IMPORTS HURT US STEEL FIRMS WASHINGTON THE INTERNATIONAL TRADE COMMISSION ISSUED A FINAL RULING THAT THE US STEEL INDUSTRY IS INJURED BY IMPORTS OF CERTAIN HOTROLLED LEAD AND BISMUTH CARBON STEEL PRODUCTS FROM BRAZIL FRANCE GERMAN AND BRITAIN THE COMMISSION A QUASIJUDICIAL BODY THAT RULES ON TRADE CASES SAID THE IMPORTS ARE UNFAIRLY SUBSIDIZED AND DUMPED IN THE US AT LESS THAN FAIR VALUE THE RULING MEANS THAT TARIFFS LEVIED EARLIER BY THE COMMERCE DEPARTMENT WILL TAKE EFFECT ON THOSE IMPORTS THE TARIFFS RANGED AS HIGH AS 14812 IMPORTS OF THE VARIOUS STEEL PRODUCTS TOTALED 908 MILLION IN 1991 A MINUSCULE PART OF THE US STEEL MARKET THE ACTION WAS INITIATED BY A COMPLAINT FILED LAST YEAR BY INLAND STEEL INDUSTRIES INC AND A UNIT OF BETHLEHEM STEEL CORP 9303050012 930305 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FUTURE NOW INC AN OFFERING OF 145 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO AND OHIO CO RECOGNITION EQUIPMENT INC AN OFFERING OF TWO MILLION COMMON SHARES VIA BEAR STEARNS & CO SOFTIMAGE INC AN OFFERING OF 122 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND VOLPE WELTY & CO 9303050011 930305 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED FEB 26 ACCOUNTED FOR 162 OR AN AVERAGE 479 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 48 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 302 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 473 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 403 OF PROGRAM TRADING WAS FOR CUSTOMERS WHILE 397 REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 20 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND DAIWA SECURITIES DID MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY MERRILL LYNCH AND PAINEWEBBER DID MOST OR ALL OF THEIR PROGRAM TRADING FOR CUSTOMERS 9303050010 930305 EXECUTIVES OPPOSE PROPOSAL TO REQUIRE AUDITORS TO EVALUATE CONTROLS ON FRAUD BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHIEF FINANCIAL OFFICERS OF MAJOR CORPORATIONS ARE VOWING TO FIGHT A PROPOSAL THAT WOULD REQUIRE OUTSIDE AUDITORS TO DETERMINE IF COMPANIES' INTERNAL CONTROLS ON FINANCIAL FRAUD ARE EFFECTIVE THE PROPOSAL WHICH IS TO BE PRESENTED TODAY TO THE SECURITIES AND EXCHANGE COMMISSION IS BEING ADVANCED BY AN OVERSIGHT BODY OF THE 300000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL GROUP THE SEC HAS RESERVED COMMENT ON THE PROPOSAL FOR NOW THE RECOMMENDATION IS BACKED BY ACCOUNTING SPECIALISTS WHO MAINTAIN THAT OUTSIDE AUDITORS' ASSESSMENTS OF PUBLIC COMPANIES' ANNUAL FINANCIAL STATEMENTS ARE USELESS WITHOUT AN ACCOMPANYING EVALUATION OF COMPANIES' INTERNAL CONTROLS THEY POINT TO LESLIE FAY COS WHERE AN EXPECTED BIG ANNUAL PROFIT RECENTLY TURNED OUT TO BE A SIZABLE LOSS AFTER THE DRESSMAKER SAID POOR INTERNAL CONTROLS PERMITTED ITS CONTROLLER TO FALSIFY FINANCIAL RESULTS INTERNAL CONTROLS ARE RULES COMPANIES IMPOSE TO MONITOR WHETHER THEIR ASSETS ARE BEING PROTECTED FROM FRAUD THEFT EMPLOYEE MISTAKES AND LOSSES IT'S IMPORTANT THAT THE OUTSIDE AUDITOR SHOULD BE RESPONSIBLE FOR A CLIENT COMPANY'S INTERNAL CONTROLS OTHERWISE ALL THE ASSURANCES IN THE WORLD WON'T HELP PREVENT FINANCIAL FRAUD SAID JOHN C BURTON AN ACCOUNTING PROFESSOR AT COLUMBIA UNIVERSITY AND THE SEC'S CHIEF ACCOUNTANT FROM 1972 UNTIL 1976 BUT NORMAN ROY PRESIDENT OF THE 14000MEMBER FINANCIAL EXECUTIVES INSTITUTE SAID THAT HIS GROUP IS ADAMANTLY OPPOSED TO THE OVERSIGHT GROUP'S PROPOSAL IT COULD BOOST AUDIT FEES FROM 5 TO 20 AND SOME COMPANIES THINK EVEN MORE HE SAID ADDING THAT HIS GROUP IS PREPARING TO MAKE ITS OPINION KNOWN TO LEGISLATORS AND REGULATORS IN WASHINGTON THE PROPOSAL IS PART OF A 100PAGE REPORT BY THE PUBLIC OVERSIGHT BOARD OF THE ACCOUNTING GROUP'S SEC PRACTICE SECTION WHICH PERIODICALLY REVIEWS ACCOUNTING FIRMS' AUDITING PROCEDURES THE BOARD'S CHAIRMAN AA SOMMER JR CONCEDED THAT AUDIT FEE COSTS MIGHT RISE SUBSTANTIALLY IN THE FIRST YEAR THAT OUTSIDE AUDITORS TAKE A HARD LOOK AT A COMPANY'S INTERNAL CONTROLS BUT HE INSISTED THOSE COSTS WILL BE REDUCED SUBSTANTIALLY IN LATER YEARS AS THE AUDITOR BECOMES MORE FAMILIAR WITH THE COMPANY THE RULE CHANGE IS NECESSARY HE ADDED BECAUSE INCREASED AUDITOR SCRUTINY IS AN EFFECTIVE MEANS OF CUTTING DOWN ON MANAGEMENT FRAUD A FORMER SEC COMMISSIONER MR SOMMER SAID THAT THE BOARD WILL MAKE ITS RECOMMENDATIONS TO THE SEC AT ITS PUBLIC HEARING TODAY IN WASHINGTON WE'RE HOPEFUL IT WILL BE WELLRECEIVED HE SAID OTHER BOARD MEMBERS INCLUDE FORMER DEFENSE SECRETARY MELVIN R LAIRD AND PAUL W MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS THE SEC HASN'T INDICATED HOW IT WILL REACT TO THIS PROPOSAL WALTER SCHUETZE THE SEC'S CHIEF ACCOUNTANT SAID HE RESERVES JUDGMENT ON THE QUESTION OF WHETHER OUTSIDE AUDITORS SHOULD EXPRESS AN OPINION ON CORPORATE INTERNAL CONTROLS THE ISSUE IS OBVIOUSLY VERY COMPLEX AND CONTENTIOUS HE ADDED MR SCHUETZE SAID HE SUPPORTS THE PUBLIC OVERSIGHT BOARD'S RECOMMENDATIONS ON PROPORTIONAL LIABILITY FOR ACCOUNTANTS BUT WHATEVER IS DONE TO END ABUSIVE LITIGATION AGAINST ACCOUNTANTS WE CANNOT EXCUSE SUBSTANDARD AUDIT WORK WHENEVER IT IS FOUND HE ADDED THE REPORT ALSO MAKES A WIDE RANGE OF SUGGESTIONS ON HOW ACCOUNTANTS COULD DO A BETTER JOB AUDITING CORPORATE FINANCIAL RESULTS IT SUPPORTS TORT REFORM AND PROPORTIONAL LIABILITY FOR ACCOUNTANTS AND IT SUPPORTS A BILL IN CONGRESS THAT WOULD REQUIRE OUTSIDE AUDITORS TO TELL REGULATORS IF CORPORATE CLIENTS FAIL TO REPORT FINANCIAL FRAUD TO THE PUBLIC BUT ITS RECOMMENDATION ABOUT INTERNAL CONTROLS IS GENERATING THE MOST CONTROVERSY AMONG BUSINESSMEN ACCOUNTANTS LEGISLATORS AND REGULATORS JAMES KAITZ A VICE PRESIDENT OF THE FINANCIAL EXECUTIVES GROUP SAID THAT THE INTERNALCONTROLS PROPOSAL WOULD MOST HURT SMALL BUSINESS WHICH CANNOT AFFORD TO HAVE THEIR AUDIT FEES INCREASED BUT JERRY SULLIVAN THE PUBLIC OVERSIGHT BOARD'S EXECUTIVE DIRECTOR SAID THAT LAX INTERNAL CONTROLS ARE MOST OFTEN FOUND AT SMALL OR MEDIUMSIZE BUSINESSES WHERE AUDITOR SCRUTINY OF SUCH CONTROLS IS MOST NEEDED IN ITS REPORT WHICH TOOK SEVEN MONTHS TO PREPARE THE PUBLIC OVERSIGHT BOARD ALSO RECOMMENDED THAT AUDITS BE STRENGTHENED BY REQUIRING ACCOUNTING FIRMS TO ANALYZE WHY LITIGATION WAS AIMED AT SOME OF THEIR AUDITS AND TO REPORT THE RESULTS AND CORRECTIVE STEPS TAKEN TO THE AMERICAN INSTITUTE OF CPAS' SELFREGULATORY UNIT 9303050009 930305 SUNTRUST BANKS' CHIEF MADE NEARLY 5 MILLION IN 1992 PROXY SAYS ATLANTA SUNTRUST BANKS INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES B WILLIAMS EARNED ALMOST 5 MILLION IN ANNUAL AND LONGTERM COMPENSATION FOR 1992 ACCORDING TO THE COMPANY'S PROXY STATEMENT THE EXECUTIVE COMPENSATION FOR MR WILLIAMS 60 YEARS OLD INCLUDED A 3750000 RESTRICTED STOCK AWARD THAT IS CONTINGENT ON THE COMPANY'S STOCK PRICE APPRECIATING SIGNIFICANTLY AND ON HIS REMAINING AT THE COMPANY UNTIL HE IS 64 UNDER TERMS OF THE 100000 SHARE PLAN SUNTRUST WILL AWARD MR WILLIAMS 20 OF THE STOCK EACH TIME ITS SHARE PRICE RISES BY 20 MR WILLIAMS' COMPENSATION ALSO INCLUDED A RELATIVELY MODEST 500000 BASE SALARY A 175000 BONUS BASED ON WHAT THE COMPANY CALLED ITS EXCELLENT FINANCIAL RESULTS IN 1992 A PERFORMANCE UNIT PLAN AWARD OF 367800 BASED ON THE COMPANY MEETING ITS EARNINGSPERSHARE GROWTH TARGET OVER THREE YEARS AND 204537 HE REALIZED FROM STOCK OPTIONS THE CONSERVATIVE REGIONAL BANK HOLDING COMPANY EXCEEDED BOTH THE S&P 500 AND THE S&P MAJOR REGIONAL BANK COMPOSITE INDEX IN 1992 ACCORDING TO A COMPARISON CHART INCLUDED IN THE PROXY 9303050008 930305 ABREAST OF THE MARKET STOCKS FINISH MIXED AMID JITTERS ABOUT JOBS DATA KEY INDEXES SLIP BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED NARROWLY MIXED WITH MARKET INDEXES SLIPPING ON GROWING ECONOMIC CONCERNS RECENT ECONOMIC DATA HAVE SOFTENED FROM THE STRONG SHOWINGS THAT INVESTORS GREW ACCUSTOMED TO EARLIER IN THE YEAR WHILE ANALYSTS ARE DIVIDED ON THE IMPORTANCE OF THE RECENT WEAKNESS MANY INVESTORS AREN'T TAKING CHANCES TRADERS SAID MUCH OF THE SELLING IN THE STOCK MARKET CAME FROM INVESTORS NERVOUS ABOUT TODAY'S EMPLOYMENT REPORT FOR FEBRUARY THE FIRST CLEAR GLIMPSE OF HOW THE ECONOMY FARED LAST MONTH SOME MARKET WATCHERS SAY A DISAPPOINTING REPORT COULD SEND THE STOCK MARKET SLIDING THE DOW JONES INDUSTRIAL AVERAGE WAFFLED IN A NARROW RANGE ENDING 513 POINTS LOWER AT 339891 STANDARD & POOR'S 500STOCK INDEX FELL 192 TO 44734 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 088 TO 24653 ANALYSTS SAID A CONTINUING RALLY IN THE BOND MARKET HAS HELPED TO SUPPORT THE STOCK MARKET THE MARKET WOULD BE DOWN A LOT MORE IF BONDS WERE FLAT OR DOWN THIS WEEK SAID EDWARD LAUX MANAGING DIRECTOR OF EQUITY TRADING AT KIDDER PEABODY TRADING VOLUME SLOWED ON THE BIG BOARD TO 230780000 SHARES FROM WEDNESDAY'S 272290000 SHARES ADVANCING STOCKS NARROWLY BEAT DECLINING STOCKS 967931 ACCORDING TO A REPORT YESTERDAY INITIAL STATE UNEMPLOYMENT CLAIMS JUMPED BY 26000 IN THE WEEK ENDED FEB 20 FAR MORE THAN THE MODEST 1000CLAIM RISE WIDELY EXPECTED NEW FACTORY ORDERS IN JANUARY FELL 13 THE LARGEST MONTHLY DROP SINCE AUGUST MEANWHILE SALES AT THE COUNTRY'S LARGEST CHAIN STORES REGISTERED ONLY A SLIGHT INCREASE IN FEBRUARY FROM JANUARY SEVERAL RETAILING STOCKS SANK IN RESPONSE TO THE NUMBERS THE MARKET'S FOCUS HAS TURNED TO TODAY'S JOBS REPORT WHICH IS EXPECTED TO SHOW AN INCREASE OF ABOUT 125000 NONFARM JOBS IN FEBRUARY KIDDER'S MR LAUX SAID A MUCH SMALLER INCREASE COULD HURT ECONOMICALLY SENSITIVE SHARES WHICH HAVE BEEN MARKET FAVORITES SO FAR THIS YEAR HOWEVER A WEAK JOBS REPORT COULD EXTEND THE BOND MARKET'S RALLY STEERING INVESTORS TOWARD UTILITY STOCKS HIGHYIELDING OIL STOCKS BANK STOCKS AND OTHER INTERESTRATE SENSITIVE SECTORS MR LAUX SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH DIRECTOR OF RESEARCH SAYS THE APPARENT SLOWDOWN IN THE ECONOMY FROM THE FOURTH QUARTER'S ROBUST GROWTH IS NOTHING TO WORRY ABOUT FOR MR SOLLOWAY THE DROP IN BOND YIELDS OVERRIDES ANY ECONOMIC CONCERNS BESIDES THE ECONOMIC EFFECTS MR SOLLOWAY NOTED THAT THE LOWER RATES RELIEVE PRESSURE ON STOCK VALUATIONS STOCK VALUES ARE A FUNCTION OF INTEREST RATES ACCORDING TO MANY MODELS WALMART STORES TOPPED THE MOSTACTIVE LIST FALLING 7/8 TO 32 7/8 ON VOLUME OF MORE THAN 47 MILLION SHARES SALES AT STORES OPEN AT LEAST A YEAR WERE FLAT IN FEBRUARY COMPARED WITH A YEAR EARLIER TOBACCO STOCKS FELL AGAIN AFTER PRUDENTIAL SECURITIES LOWERED ITS INVESTMENT RATINGS ON PHILIP MORRIS AND RJR NABISCO TO HOLD FROM BUY PHILIP MORRIS DROPPED 1 1/4 TO 65 3/8 AND RJR NABISCO LOST 1/4 TO 8 1/2 DRUG AND HEALTH CARE STOCKS SLUMPED BRISTOLMYERS SQUIBB LOST 1 7/8 TO 56 1/4 MERCK FELL 7/8 TO 37 3/4 AND JOHNSON & JOHNSON SLID 1 1/8 TO 41 3/8 SHARES OF HEALTH MAINTENANCE ORGANIZATIONS WERE HIT PARTICULARLY HARD AFTER REP PETE STARK HEAD OF THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE CRITICIZED THE INDUSTRY REP STARK WAS QUOTED IN THE CONGRESSIONAL RECORD AS SAYING THAT SOME HMOS HAVE BEEN INFLATING PRICES PAYING TOP EXECUTIVES TOO MUCH AND PRACTICING SELECTIVE INSURANCE TO KEEP ADMINISTRATIVE COSTS DOWN AIRLINE STOCKS ROSE MANY OF THE CARRIERS REPORTED STRONG FEBRUARY TRAFFIC UAL PARENT OF UNITED AIRLINES ROSE 1 1/4 TO 116 5/8 AMERICAN AIRLINES PARENT AMR ADDED 1 1/8 TO 59 1/8 AND DELTA AIR LINES GAINED 1 1/8 TO 50 INTERNATIONAL GAME TECHNOLOGY FELL 4 TO 55 MORGAN STANLEY ANALYST KURT FEUERMAN DOWNGRADED THE STOCK TO A HOLD FROM A BUY PARTLY BECAUSE OF ITS PRICE MR FEUERMAN SAID HE IS ALSO CONCERNED THAT THE RECENT LEGISLATIVE TRENDS IN THE WEST COULD CAST A PSYCHOLOGICAL CLOUD OVER GAMING STOCKS ARIZONA LAWMAKERS PASSED A BILL OUTLAWING ALL FORMS OF GAMBLING EXCEPT FOR RACING AND THE STATE LOTTERY GOV FIFE SYMINGTON WHO IS LOCKED IN A BATTLE TO CURTAIL GAMBLING ON NATIVE AMERICAN LANDS IN THE STATE IS EXPECTED TO SIGN THE BILL SOME ANALYSTS SAID THE DEVELOPMENT COULD HURT INTERNATIONAL GAME TECHNOLOGY WHICH THEY SAY WAS POISED TO SUPPLY THE NATIVE AMERICANS WITH SLOT MACHINES BUT JOHN J RUSSELL PRESIDENT OF THE COMPANY SAID IT HAD NO PLANS TO SUPPLY SLOT MACHINES TO THE NATIVE AMERICANS HE CONCEDED HOWEVER THAT IF THE BILL HAD NOT PASSED IT WOULD HAVE MEANT A PLUS FOR US IN TERMS OF BUSINESS REGARDLESS OF THE BILL MR FEUERMAN OF MORGAN STANLEY SAID HE EXPECTS INTERNATIONAL GAME TO EARN 150 A SHARE IN FISCAL 1993 AND 215 A SHARE IN FISCAL 1994 ORBITAL ENGINE'S AMERICAN DEPOSITARY RECEIPTS GAINED 4 1/4 TO 20 7/8 DESPITE ITS REPORT OF A 54 DROP IN FISCAL FIRSTHALF PROFIT THE COMPANY SAID A MAJOR INTERNATIONAL AUTO MAKER HAS AGREED TO BUY ENGINES FROM ORBITAL'S MICHIGAN PLANT AND START HIGHVOLUME PRODUCTION OF ORBITALPOWERED VEHICLES COMPAQ COMPUTER GAINED 2 1/8 TO 45 ON HEAVY VOLUME THE COMPANY IS EXPECTED TO ANNOUNCE NEW NOTEBOOK AND DESKTOP COMPUTERS AS WELL AS A ROUND OF PRICE CUTS UNISYS ALSO ROSE ON HEAVY VOLUME ADDING 3/4 TO 13 1/8 TECHSYM GAINED 1 5/8 TO 15 3/4 KIDDER PEABODY'S CHIEF MARKET STRATEGIST DENNIS JARRETT NAMED THE STOCK ITS TECHNICAL CHART OF THE WEEK SAYING THE STOCK COULD RISE AS HIGH AS 17 IN THE NEAR FUTURE AMERICAN STOCK EXCHANGE VOLUME TOTALED 15055000 SHARES COMPARED WITH 15614000 WEDNESDAY THERE WERE 268 ISSUES ADVANCING 285 DECLINING AND 209 UNCHANGED 9303050007 930305 LETTERS TO THE EDITOR GETTING TO KNOW ALL ABOUT US IN YOUR FEB 22 EDITORIAL ROSIER SCENARIOS YOU NOTED THAT PRESIDENT CLINTON REALLY TAKES A MALLET TO THE STATE JUSTICE INSTITUTE WHATEVER THAT IS WE AT SJI HAVE NOTED WITH GRIM IRONY THAT OUR GREATEST PUBLICITY HAS BEEN ACHIEVED BY THE PRESIDENT'S RECOMMENDATION TO ABOLISH US PRIOR TO THAT SJI'S EXISTENCE WAS KNOWN MOSTLY TO STATE AND FEDERAL COURTS THANKS TO ITS SUPPORT FOR HUNDREDS OF INNOVATIONS TO HELP ADJUDICATE THEIR CASES IN A MORE EFFICIENT AND JUST MANNER THE INSTITUTE WAS CREATED BY FEDERAL LAW IN 1984 TO IMPROVE THE ADMINISTRATION OF JUSTICE IN STATE COURTS AND THE WORKING RELATIONSHIP BETWEEN STATE AND FEDERAL COURTS SINCE IT BECAME OPERATIONAL IN 1987 SJI HAS FUNDED MORE THAN 600 PROJECTS PROVIDING INFORMATION EDUCATION AND TECHNICAL ASSISTANCE TO JUDGES ON SUBJECTS RANGING FROM REDUCING LITIGATION DELAY TO CUTTINGEDGE ISSUES IN BIOTECHNOLOGY IT HAS ALSO SUPPORTED EFFORTS TO FACILITATE DISPOSITION OF THE TENS OF THOUSANDS OF ASBESTOS CASES FLOODING STATE AND FEDERAL COURTS SJI HAS ACCOMPLISHED ITS NATIONAL MISSION WITH ONLY 25 EMPLOYEES AND AN ANNUAL BUDGET THAT HAS NEVER EXCEEDED 136 MILLION BECAUSE THE INSTITUTE IS IN MANY WAYS PRECISELY THE TYPE OF REINVENTED GOVERNMENT ORGANIZATION THE PRESIDENT CAMPAIGNED TO ESTABLISH WE HOPE WE CAN CONVINCE BOTH OMB AND CONGRESS THAT SJI DESERVES CONTINUED SUPPORT NOT EXTINCTION WE ALSO APPRECIATE THE OPPORTUNITY TO FILL THE KNOWLEDGE GAP OF THE WALL STREET JOURNAL WHICH DOES NOT ORDINARILY CRITICIZE EFFECTIVE GOVERNMENT PROGRAMS SIMPLY BECAUSE IT DOES NOT KNOW ABOUT THEM 9303050006 930305 SPAIN'S PRIVATIZATION OF BANKING GROUP ARGENTARIA ADVANCES SPECIAL TO THE WALL STREET JOURNAL MADRID THE DIRECCION GENERAL DEL PATRIMONIO A SPANISH GOVERNMENT AGENCY THAT CONTROLS STATE HOLDINGS GAVE ITS FORMAL APPROVAL FOR THE PRIVATIZATION OF ARGENTARIA CORPORACION BANCARIA DE ESPANA SA ONE OF SPAIN'S BIGGEST BANKING GROUPS THE PATRIMONIO WHICH HOLDS 100 OF ARGENTARIA SAID THE SIZE OF THE OFFER AND ITS BREAKDOWN BY TRANCHE AND TIMETABLE WILL BE COMMUNICATED IN DUE COURSE THE LONGEXPECTED SHARE OFFER WILL BE MADE IN FIVE TRANCHES IN SPAIN THE US THE UK CONTINENTAL EUROPE AND ONE FOR THE REMAINDER OF THE WORLD EACH REGION WILL HAVE A SYNDICATE WITH ONE OR MORE LEAD MANAGERS COMANAGERS AND A NUMBER OF UNDERWRITERS THE PATRIMONIO SAID IN A STATEMENT RELEASED BY ARGENTARIA BOTH RETAIL AND INSTITUTIONAL INVESTORS WILL BE TARGETED BY THE OFFER WITH THE SPANISH TRANCHE BEING PREDOMINANTLY RETAILORIENTED AND INTERNATIONAL TRANCHES MAINLY INSTITUTIONAL THE PATRIMONIO SAID MORGAN STANLEY HAS BEEN APPOINTED GLOBAL COORDINATOR WITH ARGENTARIA ACTING AS COGLOBAL COORDINATOR THE ARGENTARIA OFFER IS EXPECTED TO BE BETWEEN 20 AND 25 OF THE GROUP'S STOCK AND IS SEEN RAISING BETWEEN 100 BILLION PESETAS 8457 MILLION AND 150 BILLION PESETAS FOR THE GOVERNMENT ARGENTARIA WAS FORMED IN 1991 WHEN THE GOVERNMENT POOLED ITS FIVE BANKING INSTITUTIONS INCLUDING THE COMMERCIAL BANK BANCO EXTERIOR WHICH IS ALREADY 30 PRIVATELY HELD THE GROUP ALSO INCLUDES THE STATE SAVINGS BANK CAJA POSTAL THE LENDING INSTITUTION FOR GOVERNMENT BODIES BANCO DE CREDITO LOCAL AND THE FARMFINANCING INSTITUTION BANCO DE CREDITO AGRICOLA ARGENTARIA REPORTED CONSOLIDATED PROFIT ROSE 15 IN 1992 TO 6741 BILLION PESETAS FROM 5877 BILLION PESETAS IN 1991 9303050005 930305 LETTERS TO THE EDITOR OLD TOM KNEW WHAT HE WAS TALKING ABOUT I WAS INTRIGUED TO READ THOMAS JEFFERSON'S CAUTION AGAINST THE DANGERS OF DEBT IN YOUR FEB 17 NOTABLE & QUOTABLE EDITORIAL PAGE AT THE TIME OF HIS DEATH IN 1826 JEFFERSON HAD MORE THAN 100000 IN PERSONAL DEBTS THAT TOOK ALMOST 50 YEARS TO PAY OFF HIS ESTATE MONTICELLO WAS SOLD TO REPAY HIS CREDITORS ONE OF WHOM WAS HIS GRANDSON THE MOST SUBSTANTIAL PORTION OF THIS DEBT WAS A PROMISSORY NOTE HE HAD COSIGNED WITH VIRGINIA REAL ESTATE SPECULATOR WILSON CARY NICHOLAS A FAVOR HE WAS IN NO POSITION TO REFUSE WHEN NICHOLAS WENT BANKRUPT AFTER THE PANIC OF 1819 JEFFERSON WAS LEFT WITH THE BURDEN IN A MOVE THAT WOULD SURELY INSPIRE THE CURRENT HOUSE ETHICS COMMITTEE TO FITS OF MORALIZING JEFFERSON ATTEMPTED TO PERSUADE THE VIRGINIA LEGISLATURE TO HOLD A STATE LOTTERY AT THAT TIME ILLEGAL TO RAISE THE MONEY FOR THE DEBT THE LEGISLATURE REFUSED AND INSTEAD JEFFERSON RECEIVED CONTRIBUTIONS FROM NUMEROUS FRIENDS AND PUBLIC INSTITUTIONS INCLUDING ONE FROM THE STATE OF LOUISIANA LEST YOU THINK HIS PROFLIGACY WAS MERELY IN HIS PERSONAL FINANCES YOU SHOULD CONSIDER THAT HIS ADMINISTRATION BORROWED 15 MILLION FOR THE LARGEST NATIONAL PURCHASE TO DATE THE LOUISIANA TERRITORY AND EVEN WHILE EXHORTING OTHERS TO SAVE EVERY PENNY FOR REPAYMENT OF THE SIZABLE REVOLUTIONARY WAR DEBT JEFFERSON CONSISTENTLY OUTSPENT HIS OFFICIAL WHITE HOUSE ALLOWANCE IF RUNNING UP DEBTS LEAVES US WITH NO SENSIBILITIES BUT FOR SINNING AND SUFFERING AS JEFFERSON WROTE IN HIS 1816 LETTER TO SAMUEL KERCHEVAL ONE CAN ONLY HOPE THAT HIS SINNING WAS DELICIOUSLY WORTH IT 9303050004 930305 US PEANUT SUBSIDIES RAISE CONSUMER COSTS NEW GAO DATA SAY WASHINGTON THE GOVERNMENT'S PEANUTSUBSIDY PROGRAM ADDS 314 MILLION TO 513 MILLION TO CONSUMERS' COSTS EACH YEAR A NEW GENERAL ACCOUNTING OFFICE REPORT HAS FOUND THE REPORT IS THE LATEST CRITICISM OF THE PROGRAM UNDER WHICH THE AGRICULTURE DEPARTMENT CONTROLS THE SUPPLY OF PEANUTS AND GUARANTEES PRODUCERS A MINIMUM PRICE THAT SUBSTANTIALLY EXCEEDS THE WORLD MARKET PRICE WHILE THE PROGRAM ISN'T TARGETED BY PRESIDENT CLINTON'S PROPOSED BUDGET THE GAO REPORT COMES AT A TIME WHEN CONGRESS IS LOOKING FOR ADDITIONAL DEFICITCUTTING MEASURES THE AGRICULTURE DEPARTMENT INCURRED AVERAGE ANNUAL COSTS OF 344 MILLION IN SUPPORTING THE PROGRAM FROM 1986 THROUGH 1990 THE GAO SAID IN THE PAST LAWMAKERS FROM PEANUTGROWING STATES HAVE REPEATEDLY FOUGHT OFF EFFORTS TO SCALE BACK THE PROGRAM THE GAO RECOMMENDS REDUCING THE ANNUAL QUOTA SUPPORT PRICES ALLOWING THE QUOTA PRICE TO RISE AND FALL WITH PRODUCTION COSTS AND PERMITTING GOVERNMENT AGENCIES TO BUY PEANUTS AT THE WORLD MARKET PRICE RATHER THAN AT THE QUOTA SUPPORT PRICE UNDER THE PROGRAM ONLY HOLDERS OF QUOTAS MAY SELL THEIR CROP DOMESTICALLY WHILE PRODUCERS WITHOUT QUOTAS CAN EXPORT THEIR PEANUTS FROM 1982 TO 1989 THE WORLD MARKET PRICE FOR US PEANUTS AVERAGED 494 A TON WHILE THE QUOTA SUPPORT PRICE FOR DOMESTIC PEANUTS AVERAGED 714 A TON THE GAO FOUND MITCH HEAD EXECUTIVE DIRECTOR OF THE PEANUT ADVISORY BOARD SAID THAT SURVEYS BY THE GROWER GROUP SHOW THAT PEOPLE PAY ABOUT THE SAME AMOUNT FOR PEANUT BUTTER IN THE US AS THEY DO IN EUROPE AND CANADA ALSO HE SAID AMERICANS SUPPORT THE PEANUT PROGRAM AS A WAY TO HELP FARMERS AND TO ENSURE THAT QUALITY IS MAINTAINED 9303050003 930305 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE IMMIGRANTS TO THE US GENERALLY HAVE LESS EDUCATION HIGHER UNEMPLOYMENT RATES AND LOWER EARNINGS THAN NATIVEBORN AMERICANS BUT WITHIN MANY ETHNIC GROUPS IMMIGRANTS FARE BETTER IN SOME WAYS THAN NATIVEBORN PEOPLE ONE IN FOUR IMMIGRANTS AGE 25 TO 54 HAS NO HIGHSCHOOL EDUCATION ACCORDING TO A 1989 CENSUS BUREAU SURVEY ANALYZED BY ECONOMIST JOSEPH R MEISENHEIMER II FOR THE BUREAU OF LABOR STATISTICS FEWER THAN 4 OF WORKINGAGE NATIVEBORN AMERICANS HAVE AS LITTLE SCHOOLING BOTH IMMIGRANT AND NATIVEBORN HISPANICS HAVE LESS SCHOOLING THAN AVERAGE HISPANICS ACCOUNT FOR NEARLY HALF OF THE WORKINGAGE IMMIGRANT POPULATION BUT 43 OF HISPANIC IMMIGRANTS HAVE NO HIGHSCHOOL EDUCATION TRIPLE THE PROPORTION OF NATIVEBORN HISPANICS WITHIN OTHER GROUPS HOWEVER IMMIGRANTS HAVE MORE EDUCATION THAN THEIR NATIVEBORN COUNTERPARTS THE DIFFERENCES ARE MORE PRONOUNCED WHEN COMPARING COLLEGE EDUCATION ONETHIRD OF NONHISPANIC WHITE IMMIGRANTS HAVE COMPLETED FOUR OR MORE YEARS OF COLLEGE COMPARED WITH 27 OF NATIVEBORN PEOPLE IN THIS ETHNIC GROUP FORTYSIX PERCENT OF ASIANBORN IMMIGRANTS HAVE FOUR OR MORE YEARS OF COLLEGE COMPARED WITH 34 OF NATIVEBORN ASIANAMERICANS TWENTYTWO PERCENT OF BLACK IMMIGRANTS HAVE FOUR OR MORE YEARS OF COLLEGE COMPARED WITH 13 OF NATIVEBORN BLACKS AMONG BLACK MEN THE GAP RISES TO 30 VS 13 DESPITE THEIR HIGHER EDUCATIONAL ATTAINMENT ASIAN AND NONHISPANIC WHITE IMMIGRANTS HAVE SLIGHTLY HIGHER UNEMPLOYMENT RATES THAN NATIVEBORN WORKERS OF THE SAME ETHNIC GROUPS ON THE OTHER HAND FOREIGNBORN HISPANIC MEN WHO HAVE LESS SCHOOLING THAN THEIR NATIVEBORN COUNTERPARTS ALSO HAVE A LOWER UNEMPLOYMENT RATE 5 VS 7 IMMIGRANTS WHO SPEAK ONLY ENGLISH AT HOME OR SPEAK IT WELL HAVE UNEMPLOYMENT RATES COMPARABLE TO THOSE OF NATIVEBORN AMERICANS FACILITY WITH ENGLISH APPEARS TO BE EVEN MORE IMPORTANT FOR EARNINGS AS A WHOLE IMMIGRANTS 16 OR OLDER WHO WORK FULL TIME EARN LESS THAN NATIVEBORN WORKERS 22 LESS FOR MEN AND 14 LESS FOR WOMEN BUT IMMIGRANT MEN AND WOMEN WHO SPEAK ONLY ENGLISH AT HOME EARN ABOUT 20 MORE THAN NATIVEBORN WORKERS MORE THAN HALF OF WOMEN ARE WIDOWS WHEN THEY DIE WHILE MORE THAN HALF OF WHITE MEN AND NEARLY HALF OF BLACK MEN ARE MARRIED WHEN THEY DIE FIFTYEIGHT PERCENT OF WHITE WOMEN AND 53 OF BLACK WOMEN WHO DIED IN 1990 WERE WIDOWS ACCORDING TO THE NATIONAL CENTER FOR HEALTH STATISTICS THIS IS LARGELY BECAUSE WOMEN TEND TO MARRY OLDER MEN AND LIVE AN AVERAGE OF SEVEN YEARS LONGER THAN MEN AT THE SAME TIME 62 OF WHITE MEN AND 46 OF BLACK MEN WERE MARRIED WHEN THEY DIED WHITE MEN ARE MORE LIKELY THAN BLACK MEN TO BE SURVIVED BY SPOUSES IN PART BECAUSE THEY ARE MORE LIKELY TO HAVE THEM AMONG BLACK MEN 15 AND OLDER IN 1992 45 HAD NEVER BEEN MARRIED COMPARED WITH 28 OF WHITES MOREOVER BLACK MEN HAVE MUCH HIGHER DEATH RATES THAN WHITES AT YOUNGER AGES MEANING MANY HAVE LESS CHANCE TO MARRY AMONG MEN IN THEIR EARLY 20S THE DEATH RATE IS 21 TIMES HIGHER FOR BLACKS THAN WHITES AMONG MEN IN THEIR 30S THE BLACK DEATH RATE IS 26 TIMES HIGHER ONCE BLACKS REACH THEIR EARLY 40S THE GAP BEGINS TO NARROW BUT ONLY IN THE 85ANDOLDER AGE GROUP DOES THE DEATH RATE FOR BLACKS FALL BELOW THAT OF WHITES MOST ELDERLY PEOPLE ARE WOMEN AND BLACK WOMEN ARE ALMOST AS LIKELY AS WHITE WOMEN TO MARRY 87 VS 92 SO THE SHARE OF BLACKS WHO ARE WIDOWED WHEN THEY DIE 33 IS NEARLY AS HIGH AS FOR WHITES 38 AMERICAN MEN AND WOMEN ARE MARRYING LATER THAN PERHAPS AT ANY TIME IN HISTORY BUT ALMOST ALL GET MARRIED BY MIDDLE AGE THE MEDIAN AGE OF FIRST MARRIAGE FOR US MEN ROSE TO 265 YEARS IN 1992 FROM 255 IN 1985 ACCORDING TO A CENSUS BUREAU REPORT ON MARITAL STATUS LAST YEAR'S FIGURE WAS THE HIGHEST EVER IN THE CATEGORY SURPASSING THE MEDIAN OF 261 IN 1890 THE FIRST YEAR THE INFORMATION WAS GATHERED AT THE TURN OF THE 20TH CENTURY HALF OF MEN WERE MARRIED BY THEIR MID20S THE CENSUS BUREAU SAYS THE AVERAGE AGE AT FIRST MARRIAGE FOR MEN FELL TO A LOW OF 226 IN THE MID1950S AND THEN ROSE AGAIN ONE HUNDRED YEARS AGO HALF OF WOMEN WERE MARRIED BY THE AGE OF 22 THAT MEDIAN FELL TO A LOW OF 202 YEARS ALSO IN THE MID1950S AND THEN REBOUNDED BY 1980 IT HAD EQUALED THE 1890 LEVEL AND SOON EXCEEDED IT RISING TO A RECORD 244 YEARS IN 1992 PEOPLE ARE POSTPONING MARRIAGE BUT MOST STILL GET TO THE ALTAR EVENTUALLY BY THEIR EARLY 40S 91 OF MEN AND 92 OF WOMEN HAVE BEEN MARRIED AT LEAST ONCE THOUGH ONLY 78 OF MEN AND 74 OF WOMEN AGE 40 TO 44 ARE CURRENTLY MARRIED THE PROPORTION OF MEN WHO ARE DIVORCED AND HAVEN'T REMARRIED PEAKS AT 12 IN THE 40TO44 AGE GROUP FOR WOMEN THE PEAK IS 16 IN THE 45TO54 RANGE THE SHARE OF THE OLDER POPULATION THAT HAS NEVER MARRIED HAS CHANGED LITTLE THROUGH THE YEARS SAYS THE REPORT'S AUTHOR ARLENE SALUTER AMONG PEOPLE 65 OR OLDER LAST YEAR 5 OF WOMEN AND 4 OF MEN HAVE NEVER MARRIED 9303050002 930305 MDC AGREES TO SETTLE CLAIMS ON DEALINGS WITH A FAILED THRIFT DENVER MDC HOLDINGS INC A DENVER HOMEBUILDER SAID IT HAS AGREED TO SETTLE CLAIMS BY RESOLUTION TRUST CORP RESULTING FROM MDC'S DEALINGS WITH THE FAILED WESTERN SAVINGS & LOAN ASSOCIATION OF PHOENIX SEPARATELY MDC SAID FOURTHQUARTER PROFIT FELL 38 AFTER A ONETIME CHARGE FOR EARLY RETIREMENT OF DEBT MDC WHICH WAS A BORROWER AT WESTERN SAVINGS SAID THE AGREEMENT WAS REACHED BEFORE A LAWSUIT WAS FILED IN COURT TERMS WON'T BE DISCLOSED UNTIL FINANCIAL STATEMENTS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SPOKESMAN SAID IN ITS SEPT 30 QUARTERLY SEC FILING MDC SAID IT FACED POTENTIAL CIVIL CLAIMS FROM THE RTC BECAUSE OF MDC'S WESTERN SAVINGS TRANSACTIONS WHICH WERE CITED IN A SUIT FEDERAL THRIFT REGULATORS OF THE RTC FILED IN PHOENIX AGAINST FORMER DIRECTORS OFFICERS AND ATTORNEYS FOR WESTERN SAVINGS IN DECEMBER MDC SAID IT WOULD PAY 727 MILLION AND OTHER GUARANTEES TO SETTLE CLAIMS WITH THE RTC RELATED TO TWO OTHER BIG FAILED THRIFTS SILVERADO BANKING SAVINGS & LOAN ASSOCIATION OF DENVER AND LINCOLN SAVINGS & LOAN ASSOCIATION OF IRVINE CALIF SEPARATELY THE COMPANY SAID THAT ORDERS FOR NEW HOMES CLOSINGS ON NEW HOMES AND THE BACKLOG OF HOME ORDERS ALL INCREASED IN THE FOURTH QUARTER BUT THOSE GAINS WERE PARTLY OFFSET BY TIGHTER PROFIT MARGINS AND LOWER HOME SELLING PRICES FOR THE THREEMONTH PERIOD MDC HAD EARNINGS OF 365000 OR TWO CENTS PER SHARE A YEAR EARLIER THE COMPANY EARNED 584000 OR THREE CENTS PER SHARE ON A ONETIME GAIN FOR BUYING BACK SENIOR NOTES REVENUE IN THE 1992 QUARTER ROSE 20 TO 1396 MILLION FROM 116 MILLION 9303050001 930305 FBI ORDERS ARRESTS IN ILLEGAL TELEPHONE MARKETING WASHINGTON FEDERAL OFFICIALS ORDERED 240 ARRESTS IN CONNECTION WITH ILLEGAL TELEMARKETING SCAMS IN THE CULMINATION OF A THREEYEAR INVESTIGATION THE FEDERAL BUREAU OF INVESTIGATION SAID ITS OPERATION DISCONNECT WAS THE MOST SIGNIFICANT CRIMINAL TELEMARKETING FRAUD INVESTIGATION IN ITS HISTORY IT COVERED 13 STATES INCLUDING NEW YORK CALIFORNIA AND FLORIDA AND FOUND 123 ILLEGAL TELEMARKETING OPERATIONS LAW ENFORCEMENT OFFICIALS BEGAN ARRESTING THE INDIVIDUALS YESTERDAY AGENTS UNCOVERED SCAMS RANGING FROM BOGUS SALES OF BIGTICKET ITEMS SUCH AS TRAVEL PACKAGES AND BUSINESS LOANS TO TRINKETS SUCH AS BUMPER STICKERS AND CALENDARS INVESTIGATORS FOUND THAT ELDERLY PEOPLE ARE THE FAVORITE TARGET OF ILLEGAL TELEMARKETERS BECAUSE ACCORDING TO A CONVICTED TELEMARKETER THEIR MEMORY IS POOR THEY RARELY MAKE NOTES OF PHONE CONVERSATIONS AND ONLY OCCASIONALLY ASK FOR WRITTEN GUARANTEES SAID FBI DIRECTOR WILLIAM SESSIONS ACCORDING TO THE INDUSTRY TRADE GROUP THE AMERICAN TELEMARKETING ASSOCIATION FLORIDA NEVADA AND SOUTHERN CALIFORNIA ARE CENTERS FOR MARKETING SCAMS PARTLY BECAUSE OF THEIR CONCENTRATED POPULATIONS OF ELDERLY PEOPLE TO GET INITIAL INFORMATION ON THE CON ARTISTS UNDERCOVER AGENTS POSED AS SALES REPRESENTATIVES OF A ONEOFAKIND COMPUTERIZED DIALING SYSTEM WHILE MAKING THE PITCH THEY GATHERED INFORMATION ON THE TELEMARKETERS' MODES OF OPERATIONS WHICH WAS LATER USED IN THE INVESTIGATION THE ASSOCIATION DEFENDS THE ETHICS OF ITS THOUSANDS OF MEMBERS THERE ARE A GREAT MANY PEOPLE THAT USE TELEMARKETING THAT ARE ETHICAL SAID MARGARET LEVERENCE EXECUTIVE DIRECTOR OF THE ORGANIZATION 9303050193 930208 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIAN PRESIDENT BORIS YELTSIN CREATED THE STATE INVESTMENT CORP AND ORDERED THE GOVERNMENT TO PROVIDE AT LEAST 1 BILLION AS INITIAL OPERATING CAPITAL TO STIMULATE FOREIGN AND DOMESTIC INVESTMENT IN THE REPUBLIC'S ECONOMY MR YELTSIN NAMED YURI PETROV HIS FORMER CHIEF OF STAFF TO HEAD THE ORGANIZATION FOR WHICH THE GOVERNMENT ALSO WILL SET ASIDE ABOUT 400 MILLION TO GUARANTEE FOREIGN INVESTMENTS THE INVESTMENT CORPORATION WILL ANALYZE SELECT AND IMPLEMENT PROJECTS BACKED BY THE GOVERNMENT FUNDS CENTRAL BANK CREDITS AND PRIVATE CAPITAL MR YELTSIN'S OFFICE SAID THOUGH IT DIDN'T INDICATE THE KINDS OF PROJECTS IT WANTS REFORM ECONOMISTS HAVE BEEN PUSHING FOR MEASURES TO ENCOURAGE PRIVATE INVESTMENT IN RUSSIA'S POORLY DEVELOPED COMMUNICATIONS TRANSPORTATION AND HOUSING SECTORS MR YELTSIN ALSO ORDERED THE CORPORATION TO BE LICENSED FOR FOREIGN TRADE THE LEGISLATURE WILL BE ASKED TO APPROVE TAX EXEMPTIONS FOR RUSSIAN AND FOREIGN INVESTORS IN THE CORPORATION'S PROJECTS HONG KONG'S POLICYMAKING EXECUTIVE COUNCIL ENDORSED GOV CHRIS PATTEN'S PROPOSALS TO BROADEN DEMOCRACY IN THE BRITISH COLONY BEFORE IT REVERTS TO CHINESE RULE IN 1997 MEANWHILE MR PATTEN 48 YEARS OLD WAS RELEASED FROM A HOSPITAL FOLLOWING SURGERY TO REPAIR CORONARY ARTERIES AND MAY RETURN TO WORK IN ABOUT A WEEK THE COUNCIL'S ENDORSEMENT MAY SHARPEN THE SINOBRITISH FEUD OVER GOVERNANCE OF HONG KONG WHERE THE LEGISLATIVE COUNCIL WILL CONSIDER THE PROPOSALS IN ABOUT TWO WEEKS BEIJING'S OPPOSES THE PROPOSALS SAYING THEY VIOLATE ACCORDS WITH BRITAIN CORPORATE INSOLVENCIES IN ENGLAND AND WALES LAST YEAR ROSE A SEASONALLY ADJUSTED 12 TO 24424 FROM A YEAR EARLIER THE BRITISH CHAMBERS OF COMMERCE SAID FOURTHQUARTER FAILURES INCREASED 7 TO 6028 CASES BUT THAT TOTAL ALSO MARKED A 10 DROP FROM 6699 CASES IN THE THIRD QUARTER FOR THE BIGGEST QUARTERLY DECREASE IN FIVE YEARS THE BUSINESS GROUP HAILED THE SLOWING FAILURE RATE BUT SAID IT DIDN'T SIGNAL AN END TO BRITAIN'S RECESSION NORWAY'S GOVERNMENT PRESENTED TO PARLIAMENT A PLAN TO STIMULATE EMPLOYMENT AND NEW BUSINESS COMBATING JOBLESSNESS IS THE FOCUS OF THE 199497 PROGRAM WHICH AIMS TO STREAMLINE STATE SPENDING AND REDUCE THE DEFICIT TAX AND BUSINESS RULES WOULD BE SIMPLIFIED AND DIRECT SUPPORT TO INDUSTRY BOOSTED NORWAY'S ECONOMY HAS REBOUNDED UNDER A TOUGH AUSTERITY PROGRAM FORCED BY THE COLLAPSE OF OIL PRICES IN 1986 BUT UNEMPLOYMENT LAST MONTH HIT A RECORD 89 CONFIRMING A RAPID WEAKENING OF GERMANY'S ECONOMY UNEMPLOYMENT ROSE SHARPLY LAST MONTH THE JUMP IN THE TRADITIONALLY SLOW WINTER PERIOD WAS MUCH BIGGER THAN EXPECTED ADDING TO PRESSURES FROM HUGE REUNIFICATION COSTS JOBLESSNESS IN WESTERN GERMANY SURGED TO 83 THE HIGHEST SINCE DECEMBER 1988 FROM 74 IN DECEMBER AND IN THE EASTERN REGION GREW TO 151 FROM 135 THE SEASONALLY ADJUSTED RISE OF 68000 UNEMPLOYED IN THE WEST WAS MORE THAN DOUBLE EXPECTATIONS WORKERS ON SHORT SHIFTS JUMPED 31 TO 852214 MEANWHILE A SURVEY OF 100 SENIOR GERMAN EXECUTIVES FOUND THAT 75 DON'T SEE AN ECONOMIC TURNAROUND UNTIL EARLY 1994 AT THE EARLIEST THE OTHER 25 EXPECT A RECOVERY LATE THIS YEAR CITING MODERATE UNION WAGE DEMANDS LOWER INTEREST RATES A STRONGER DOLLAR AND A US ECONOMIC REBOUND CHINA MAY CUT TO 33 FROM 55 THE INCOME TAX RATE FOR STATE ENTERPRISES TO HELP THEM COMPETE BETTER WITH FOREIGNFUNDED COMPANIES AN OUTBREAK OF YELLOW FEVER IN KENYA THE FIRST THERE IN FIVE DECADES HAS LEFT ABOUT 60 PEOPLE DEAD PROMPTING THE WORLD HEALTH ORGANIZATION TO BEGIN MASS IMMUNIZATIONS AGAINST THE MOSQUITOBORNE DISEASE SEE RELATED LETTER LETTERS TO THE EDITOR CORONARY ANGIOPLASTY ISN'T SURGICAL PROCEDURE WSJ MARCH 4 1993 9302080109 9303050142 930201 TECHNOLOGY INFORMATION AGE TRANSLATION SOFTWARE FALLS SHORT OF FLUENCY BY WILLIAM M BULKELEY THE ADVERTISEMENTS ARE ALLURING A COMPLETELY AUTOMATIC DOCUMENT TRANSLATION PROGRAM WITH THIS REVOLUTIONARY SOFTWARE PROGRAM YOU SIMPLY INPUT YOUR ENGLISH TEXT TRANSLATING TEXT IS FAST AND EASY THE REALITY IS THAT PC TRANSLATORS MAY GET THE MESSAGE ACROSS BUT IF WRITERS KNEW HOW BAD THEY SOUNDED THEY MIGHT WANT TO PAY EXTRA FOR HUMAN TRANSLATORS OF COURSE MANY PEOPLE WHO BUY THESE PROGRAMS DON'T KNOW WHETHER THEY'RE GETTING GOOD TRANSLATIONS AFTER ALL WHO BUYS AN ENGLISHFRENCH TRANSLATION PROGRAM IF THEY ALREADY KNOW HOW TO WRITE FRENCH BUT JUDGING BY THE ABILITY OF PROGRAMS TO TRANSLATE OTHER LANGUAGES INTO ENGLISH PC TRANSLATION HAS A LONG WAY TO GO TAKE A WARNING ABOUT HYPOTHERMIA PUT OUT BY THE CITY OF BOSTON TO ELDERLY ENGLISH AND SPANISH RESIDENTS IN ENGLISH THE WARNING READS HYPOTHERMIA MEANS LOW BODY TEMPERATURE IT IS CAUSED BY EXPOSURE TO COLD BUT THE BESTSELLING 100 LANGUAGE ASSISTANT SERIES FROM MICROTAC SOFTWARE INC SAN DIEGO CALIF TRANSLATES THE SPANISH VERSION INTO THIS ENGLISH SENTENCE HYPOTHERMIA MEANS TO SAY TEMPERATURE GETS OFF THE BODY AND IS CAUSED BY THE EXPOSITION TO THE COLD A COMPETITOR 149 FOREIGN CORRESPONDENT FROM TOLTRAN LTD LAKE ZURICH ILL TRANSLATES THE SENTENCE HYPOTHERMIA WANTS TO TELL TEMPERATURE LOWERED OF THE BODY AND IS CAUSED BY THE EXPOSICION TO THE FRY STILL FOLKS WHO NEED TRANSLATIONS FIGURE PCBASED TRANSLATION SOFTWARE IS A BLESSING GIVEN THE ALTERNATIVES WHICH ARE NONE IT HELPS SAYS RICHARD SABIN AN IMPORTER OF REMOTECONTROL HELICOPTERS IN NIAGARA FALLS NY HE USES EZ JAPANESE WRITER A 1200 PROGRAM FROM EJ BILINGUAL INC TORRANCE CALIF TO SEND LETTERS TO JAPANESE SUPPLIERS EVEN THOUGH HE HAS STUDIED ENOUGH TO WRITE SOME JAPANESE WHEN I GOT THE SOFTWARE I WAS A VIRGIN AT JAPANESE THE SOFTWARE HAS HELPED ME I USE IT AS A STARTING POINT JUST A FEW YEARS AGO THAT WOULDN'T HAVE BEEN POSSIBLE ALL LANGUAGE TRANSLATION REQUIRED 10000 SOFTWARE PROGRAMS RUNNING ON MILLIONDOLLAR MAINFRAMES OR POWERFUL MINICOMPUTERS NOT ON PCS NOW USERS HAVE A CHOICE OF SOME DOZEN PCBASED PROGRAMS COSTING FROM 100 TO 2000 THAT COVER LANGUAGES RANGING FROM RUSSIAN TO DANISH JAIME CARBONELL DIRECTOR OF THE CENTER FOR MACHINE TRANSLATION AT CARNEGIEMELLON UNIVERSITY IN PITTSBURGH SAYS RESEARCHERS ARE CURRENTLY CLOSE TO PRODUCING ACCURATE COMPUTER TRANSLATIONS THAT DON'T REQUIRE REWRITING BY HUMANS AT LEAST IN AREAS WHERE THE SUBJECT MATTER IS LIMITED IN THE LARGEST SUCH PROJECT HE SAYS CARNEGIEMELLON RESEARCHERS ARE WORKING WITH CATERPILLAR INC TO TRANSLATE THE THOUSANDS OF PAGES OF INSTRUCTIONAL SAFETY AND MAINTENANCE MANUALS THAT GO WITH EVERY BULLDOZER INTO 11 FOREIGN LANGUAGES HE ADDS FRENCH SHOULD BE OPERATIONAL BY YEAR END BUT FOR BROADER SUBJECT MATTER POLISHING IS MANDATORY MACHINE TRANSLATION IS USEFUL FOR A FIRST DRAFT SAYS GLENN AKERS PRESIDENT OF LANGUAGE ENGINEERING CORP BELMONT MASS WHICH MAKES A 2000 ENGLISHTOJAPANESE TRANSLATOR THAT RUNS ON THE APPLE MACINTOSH COMPUTER IT'S BAD FOR THE INDUSTRY IF PEOPLE ARE ADVERTISING A SYSTEM THAT WILL GIVE YOU AN EXCELLENT TRANSLATION IN ANY SENSE THAT A LAYMAN WOULD UNDERSTAND THAT'S JUST NOT POSSIBLE HE SAYS LANGUAGE IS A DAUNTING TASK FOR COMPUTERS BECAUSE OF ITS AMBIGUITY ONE WORD MAY HAVE SEVERAL DIFFERENT MEANINGS THAT ARE TRANSLATED DIFFERENTLY IN FOREIGN LANGUAGES FOR EXAMPLE TO HELP THE COMPUTERS TRANSLATE CATERPILLAR MANUALS RESEARCHERS HAD TO TEACH THEM HOW TO DIFFERENTIATE GAS AS GASOLINE FROM NATURAL GAS MANY WORDS CAN BE BOTH VERB AND NOUN LIKE NURSE OR TRUCK MAKING IT TOUGH TO EVEN PARSE A SENTENCE IN JAPANESE THERE AREN'T ANY SPACES BETWEEN CHARACTERS MAKING IT HARD FOR THE COMPUTER TO DETERMINE WHERE A WORD ENDS SOME OF THESE DIFFICULTIES HAVE BEEN APPARENT SINCE THE 1950S WHEN TRANSLATION WAS ONE OF THE FIRST TASKS ENVISIONED FOR INFANT COMPUTERS US INTELLIGENCE AGENCIES WANTED TO PUT BIG BILINGUAL DICTIONARIES OF RUSSIAN AND ENGLISH ON COMPUTERS AND HAVE THEM SPIT OUT TRANSLATIONS BUT ACCORDING TO LINGUISTICS LORE IDIOMS LIKE THE SPIRIT IS WILLING BUT THE FLESH IS WEAK CAME OUT AS THE VODKA IS STRONG BUT THE MEAT IS ROTTEN IN 1968 A GOVERNMENTSPONSORED REPORT DECREED COMPUTER TRANSLATION IMPOSSIBLE AND FUNDING DRIED UP NEVERTHELESS A FEW SMALL COMPANIES KEPT WORKING AT THE TASK STEADY ADVANCES AT UNIVERSITIES AND ENTREPRENEURIAL COMPANIES HAVE GOTTEN THE GOVERNMENT INTERESTED AGAIN THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY HAS STARTED FUNDING SOME RESEARCH US MULTINATIONALS AND TRANSLATION BUREAUS ARE USING COMPUTERS TO MAKE A FIRST PASS AT TRANSLATION AND THEN USING HUMAN TRANSLATORS TO CLEAR UP ANY PROBLEMS SYSTRAN TRANSLATION SYSTEMS LTD LA JOLLA CALIF ONE OF THE INDUSTRY PIONEERS WHOSE SOFTWARE STILL RUNS ON MAINFRAME COMPUTERS SAYS THAT A TRANSLATOR CAN POLISH A PAGE OF MACHINETRANSLATED TECHNICAL MATERIAL IN LESS THAN 20 MINUTES COMPARED WITH 45 MINUTES FOR TRANSLATING FROM SCRATCH THE ULTIMATE DREAM FOR RESEARCHERS IS A TRANSLATING TELEPHONE THAT WOULD TURN A CALLER'S WORDS INTO A LISTENER'S LANGUAGE RESEARCHERS AT CARNEGIEMELLON AND JAPANESE AND GERMAN UNIVERSITIES DEMONSTRATED LAST WEEK A SYSTEM CALLED JANUS FOR REGISTERING AT A CONFERENCE A SPEAKER CAN ASK A QUESTION ABOUT THE PROCESS FOR REGISTERING AND THE COMPUTER WILL TRANSLATE IT SO THE CONFERENCE OFFICIAL CAN ANSWER ALEXANDER WAIBEL SENIOR RESEARCH SCIENTIST AT CARNEGIEMELLON SAYS EVEN ROUTINE THINGS ARE VERY DEMANDING BECAUSE PEOPLE HAVE MANY WAYS OF SAYING THE SAME THING HE HOPES TO APPLY THE TECHNIQUE TO OTHER SPECIALIZED AREAS SUCH AS TRAVEL AND SCHEDULING APPOINTMENTS WE CERTAINLY WON'T BE HANDLING INTERNATIONAL PEACE TALKS OR POETRY DISCUSSIONS HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR MACHINE TRANSLATION MARCH 4 1993 9302010175 9303050136 930205 ADVERTISING GM REACHES FOR THE GOLD SANS MCCANN BY KEVIN GOLDMAN GENERAL MOTORS WITH THE HELP OF AD AGENCY MCCANNERICKSON LAST YEAR PULLED OFF THE MOST SUCCESSFUL LAUNCH EVER OF A CREDIT CARD NOW IT PLANS TO LAUNCH A GOLD CARD BY PASSING OVER MCCANN IN FAVOR OF A RIVAL SHOP THE AUTO MAKER SURPRISED MADISON AVENUE BY TAPPING INDEPENDENT AD AGENCY D'ARCY MASIUS BENTON & BOWLES TO HANDLE THE GOLDCARD ACCOUNT INTERPUBLIC GROUP'S MCCANNERICKSON HAS BEEN THE CREATIVE FORCE BEHIND THE GM CARD WHICH MADE ITS DEBUT FIVE MONTHS AGO AND HAS SIGNED UP 45 MILLION HOLDERS THE HALF DOZEN AD AGENCIES THAT WORK FOR VARIOUS GM DIVISIONS CONSTANTLY JOCKEY FOR ADDITIONAL BUSINESS FROM THE BIG CLIENT BUT MCCANN WHICH ALSO HANDLES BUICK AND GMC TRUCKS FAILED TO WIN WHAT SHOULD HAVE BEEN AN OBVIOUS EXPANSION IN BILLINGS FOR THE AGENCY THAT LAUNCHED GM'S CARD BUSINESS GM'S GOLD MASTERCARD ACCOUNT IS LIKELY TO ENTAIL AN ADVERTISING AND PROMOTIONAL EFFORT TOTALING PERHAPS 50 MILLION INCLUDING NETWORK TELEVISION ADVERTISING PUBLIC RELATIONS AND A MASSIVE DIRECTMAIL BLITZ TO ABOUT 25 MILLION PEOPLE THAT STARTED YESTERDAY WHEN GM INTRODUCED ITS STANDARD BLUE MASTERCARD IN SEPTEMBER THE AD BUDGET WAS REPORTED TO BE 60 MILLION WITH AN ADDITIONAL 25 MILLION EARMARKED FOR DIRECT RESPONSE A SPOKESMAN AT MCCANN INSISTED THAT THE AGENCY ISN'T DISAPPOINTED AT GM'S GOLDCARD DECISION AND NOTED THAT AMERICAN EXPRESS AT ONE POINT HAD DIFFERENT AGENCIES FOR GOLDCARD AND GREENCARD ADVERTISING THEN AGAIN ALL AMERICAN EXPRESS CARD ADVERTISING HAS SINCE REVERTED TO THE ORIGINAL AGENCY OF WPP GROUP'S OGILVY & MATHER AND THE COMPANY DISCONTINUED SEPARATE GOLDCARD ADS DESPITE THE SPURNING OF MCCANN PHILIP GUARASCIO GM'S GENERAL MANAGER OF MARKETING AND ADVERTISING FOR NORTH AMERICAN OPERATIONS SAYS MCCANN ISN'T IN ANY DANGER OF LOSING THE STANDARD CARD ACCOUNT DMB&B'S BLOOMFIELD HILLS MICH OFFICE WAS SELECTED HE SAYS BECAUSE OF THE AGENCY'S PROVEN EXPERTISE AND CAPABILITY TO TAP THE LUXURY MARKETPLACE DMB&B'S KNOWLEDGE OF THE SNOOTY SET INCLUDES CREATING ADS SINCE THE 1930S FOR GM'S CADILLAC DIVISION GM'S GOLD MASTERCARD WILL TARGET SOME OF THE SAME UPSCALE CUSTOMERS WHOSE INCOMES EXCEED 70000 THE CREDITCARD BUSINESS HAS GROWN INCREASINGLY CUTTHROAT AS A SLEW OF NONFINANCIAL COMPANIES HAVE INTRODUCED GENERALPURPOSE CARDS IN THE PAST YEAR FORD MOTOR IS EXPECTED TO ANNOUNCE A CREDIT CARD AS EARLY AS NEXT WEEK WITH J WALTER THOMPSON'S CHICAGO OFFICE EXPECTED TO GET THE ACCOUNT THOMPSON IS A UNIT OF WPP GROUP AMERICAN TELEPHONE & TELEGRAPH'S UNIVERSAL CARD WAS THE FIRST OF SUCH CARDS BUT ANALYSTS SAY GM'S CARD SET THE STANDARD IT TOOK 78 DAYS FOR AT&T TO SNARE ITS ONE MILLIONTH CUSTOMER GM DID SO IN LESS THAN A MONTH AND GM IN JUST THREE MONTHS HIT A MILESTONE THAT TOOK AT&T MORE THAN THREE YEARS TO ATTAIN THE AVERAGE OUTSTANDING BALANCE ON THE GM CARD IS AT 600 APPROXIMATELY THE SAME AVERAGE BALANCE THE UNIVERSAL CARD NOW HOLDS SAYS ROBERT MCKINLEY PRESIDENT OF RAM RESEARCH CORP A CREDITCARD RESEARCH CONCERN IN FREDERICK MD THAT RAPID RUNUP IS DUE IN PART TO THE SIZABLE DISCOUNTS ON GM CAR PRICES THAT CARD USERS CAN GET MR MCKINLEY SAYS AN INDIVIDUAL WOULD HAVE TO BE UNDER A ROCK TO AVOID MCCANN'S AD BLITZ FOR THE GM CARD TEASERS FIRST APPEARED ON ABC'S MONDAY NIGHT FOOTBALL AMONG OTHER NETWORK SHOWS ANNOUNCING A MYSTERIOUS NEW PRODUCT SET TO BE INTRODUCED BY GM A SERIES OF SIX SPOTS SOME OF WHICH CONTINUE TO BE TELEVISED BEGAN APPEARING LATE LAST YEAR WITH PANORAMIC VIEWS OF THE US AN ANNOUNCER URGES VIEWERS TO TURN BUYING POWER INTO HORSEPOWER AND PLASTIC INTO STEEL THE TAG LINE INTRODUCING A REVOLUTIONARY NEW VEHICLE THE SLOGAN FOR THE GOLD MASTERCARD BUILDS ON MCCANN'S WORK TODAY'S NEW FINANCIAL VEHICLE IS NOW A LUXURY MODEL GM AND DMB&B EXECUTIVES DECLINED TO OFFER OTHER SPECIFICS ON THE NEW AD CAMPAIGN WHICH IS EXPECTED TO BEGIN IN FOUR WEEKS ALTHOUGH GM NEVER COMMENCED A FORMAL REVIEW TO PICK AN AGENCY FOR ADVERTISING THE NEW CARD IT DISCUSSED STRATEGY OF THE CARD'S INTRODUCTION WITH ITS STABLE OF SHOPS BUT DMB&B HAD THE INSIDE TRACK IN ADDITION TO ITS CADILLAC WORK IT ALSO HANDLED THE PUBLICRELATIONS CAMPAIGN FOR GM'S STANDARD MASTERCARD DMB&B'S TASK IS TO SEARCH OUT THE ELUSIVE UPSCALE AUDIENCE AND OVERWHELM IT WITH THE CARD'S SWEETER FEATURES HOLDERS CAN ACCRUE AS MUCH AS 1000 ANNUALLY IN DISCOUNTS FOR GM CARS FOR A TOTAL OF AS MUCH AS 7000 OFF THE STICKER PRICE AND THAT IS BEYOND ANY DEALER DISCOUNTS OR REBATES AVAILABLE AT THE TIME OF PURCHASE INTEREST RATES CAN BE AS LOW AS 134 DESPITE THE WIN BY DMB&B ITS CHAIRMAN ROY BOYSTOCK SAYS HE ISN'T GUNNING FOR GM'S STANDARD CREDITCARD ACCOUNT I THINK WE'RE THE BEST IN THE BUSINESS HE SAYS AND WE OUGHT TO WIN EVERYTHING BUT HE FIGURES GM PREFERS TO HAVE TWO SEPARATE AGENCIES WITH DEDICATED RESOURCES AND GM'S MR GUARASCIO ADDS MCCANN IS AN EXTREMELY COMPETITIVE ORGANIZATION THEY WILL COME BACK EVEN MORE ENERGIZED THAN THEY WERE BEFORE JOHNSON & JOHNSON'S CONSUMER PRODUCTS GROUP IS PREACHING SAFE SEX IN A NEW PRINT AD CAMPAIGN FOR KY JELLY PERSONAL LUBRICANT THE AD FROM INTERPUBLIC GROUP'S LINTASNEW YORK WARNS THAT OILBASED LUBRICANTS CAN BREAK DOWN LATEX CONDOMS AND CAUSE TINY RIPS THESE TINY HOLES CAN EXPOSE YOU TO THE RISKS OF PREGNANCY AND SEXUALLY TRANSMITTED DISEASES THE AD SAYS YOU MAY NOT BE AS SAFE AS YOU THINK KY IS SAFE TO USE WITH CONDOMS THE AD SAYS BECAUSE IT IS WATER SOLUBLE INCLUDED IS A COUPON FOR A FREE SAMPLE THE AD IS FIRST APPEARING IN PEOPLE MAGAZINE FEB 15 AND LATER IN WOMEN'S HEALTH AND PARENTS' MAGAZINES YET ANOTHER STUDY HAS FOUND THAT CIGARETTE ADVERTISEMENTS WITH CARTOON CHARACTERS ARE HIGHLY EFFECTIVE IN REACHING ADOLESCENTS A STUDY PUBLISHED YESTERDAY IN TOBACCO CONTROL A BRITISH MEDICAL ASSOCIATION QUARTERLY FOUND THAT ADS FEATURING JOE CAMEL RJ REYNOLDS'S STYLISH CARTOON DROMEDARY ARE BY FAR THE MOST POPULAR CIGARETTE ADS WITH SEVENTH AND EIGHTH GRADERS NEARLY THREEQUARTERS OF THE STUDENTS LIKED THE CAMELS ADS WHILE 43 OF THE STUDENTS LIKED ADS WITH HUMAN MODELS THE STUDY OF 243 TEENAGERS IN CHICAGO FOUND THAT STUDENTS WHO LIKED THE ADS SAID THEY WOULD LIKELY BUY CAMELS IF THEY SMOKED THEY SAID JOE CAMEL WAS COOL AND FUN WHILE THE MARLBORO MAN WAS TOUGH AND MACHO EIGHTYFIVE PERCENT OF THE STUDENTS SURVEYED RECALLED SEEING A CIGARETTE AD WITHIN THE PREVIOUS WEEK A SPOKESWOMAN FOR RJ REYNOLDS A UNIT OF RJR NABISCO HOLDINGS CORP SAID THERE WAS NO INDICATION THAT LIKING OR RECOGNIZING AN AD LEADS TO THE USE OF A PRODUCT WHO'S NEWS JEFF ATLAS CHAIRMAN OF ATLAS CITRON HALIGMAN & BEDECARRE IS LEAVING THE SAN FRANCISCO AGENCY THAT WAS FOUNDED THREE YEARS AGO BY MR ATLAS AND THREE OTHER EXECUTIVES FROM HAL RINEY & PARTNERS TOM BEDECARRE GENERAL MANAGER IS ASSUMING THE TITLE OF CHAIRMAN THE AGENCY SAID SEPARATELY THE AGENCY SAID IT WON A NEW ACCOUNT FROM PIERRE FABRE SA FOR PHYSICIANS FORMULA COSMETICS A MASSMARKETED LINE OF HYPOALLERGENIC COSMETICS SEE RELATED LETTER LETTERS TO THE EDITOR GOOD QUESTION WSJ MARCH 4 1993 9302050053 9303050130 930201 KEEP THE MILITARY'S HOMOSEXUAL BAN BY MELISSA WELLSPETRY PRESIDENT CLINTON SEEMS DETERMINED TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY EVEN IF THE RESISTANCE OF CONGRESS HAS FORCED HIM FOR THE MOMENT TO DELAY HIS EXECUTIVE ORDER BY AT LEAST SIX MONTHS THE MEDIA CAMPAIGN IN FAVOR OF LIFTING THE BAN HAS BEEN RELENTLESS OF COURSE LEAVING THE IMPRESSION THAT NO RIGHTTHINKING PERSON WOULD CHALLENGE MR CLINTON'S POSITION YET THERE ARE MANY POINTS IN FAVOR OF THE BAN HERE ARE A FEW OF THEM FIRST HOMOSEXUALS HAVE NOT BEEN SINGLED OUT THE MILITARY EXCLUDES MANY CATEGORIES OF PEOPLE FROM SERVICE SINGLE PARENTS FELONS THE PHYSICALLY HANDICAPPED THE VARIOUS SERVICES ALSO DISCRIMINATE ON THE BASIS OF HEIGHT AND WEIGHT PHYSICAL AND MENTAL ABILITY VISUAL ACUITY LANGUAGE YOUTH AND AGE IMPLICIT IN THESE EXCLUSIONARY POLICIES IS THE WELLRECOGNIZED LEGAL PRINCIPLE THAT NO ONE HAS A RIGHT TO SERVE MILITARY SERVICE AT BEST IS A PRIVILEGE AT WORST A DANGEROUS BURDEN WHEN THE SURVIVAL OF THE NATION ITSELF IS AT STAKE AND WE MUST ALWAYS ASSUME THAT POSSIBILITY THE OVERRIDING CRITERION FOR RECRUITMENT MUST BE FITNESS TO SERVE SECOND DESPITE THE RECENT RULING IN CALIFORNIA THAT CALLED THE BAN UNCONSTITUTIONAL FEDERAL COURTS HAVE GENERALLY RULED THAT IT DOES NOT VIOLATE CIVIL RIGHTS CONTRARY TO THE IMPRESSION CREATED BY RECENT EVENTS LITIGATION OVER THIS POLICY HAS BEEN EXTREMELY RARE WHAT CHALLENGES THERE HAVE BEEN USUALLY ARE BASED ON FAMILIAR THEMES IN CONTEMPORARY CIVILRIGHTS LAW THE RIGHT TO PRIVACY THE RIGHT TO FREE ASSOCIATION THE RIGHT TO FREE SPEECH ANYONE WHO READS THE HISTORY OF THIS LITIGATION CAN ONLY CONCLUDE THAT THE CALIFORNIA RULING WILL BE OVERTURNED AND THAT GAYRIGHTS ACTIVISTS WILL NEVER GAIN ACCESS TO THE MILITARY THROUGH THE FEDERAL COURTS AT LEAST NOT BY USING CLASSICAL CIVILRIGHTS ARGUMENTS THIRD THE BAN IS JUSTIFIED IN PART BY AN ABUNDANCE OF EVIDENCE CONCERNING THE MEDICAL CONSEQUENCES OF HOMOSEXUAL BEHAVIOR A 1990 AMERICAN MEDICAL ASSOCIATION REPORT FOR EXAMPLE CITED A STUDY INDICATING THAT HOMOSEXUAL ADOLESCENTS MANY SERVICE ENLISTEES FALL INTO THIS GROUP WERE 23 TIMES MORE LIKELY TO CONTRACT A SEXUALLY TRANSMITTED DISEASE THAN WERE HETEROSEXUAL ADOLESCENTS A 1986 STUDY PRINTED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION NOTED THAT RESEARCHERS FOUND THAT HEPATITIS B INFECTION OCCURRED AT RATES OF 40 TO 60 AMONG HOMOSEXUAL MEN COMPARED WITH 4 TO 18 AMONG HETEROSEXUAL MEN EVEN IF RECENT CHANGES IN SEXUAL BEHAVIOR HAVE ALTERED THE PRECISE NUMBERS IT REMAINS TRUE THAT THE MILITARY SERVICES ARE NOT EQUIPPED TO DEAL WITH MEDICAL CRISES OF SUCH PROPORTIONS FOR ONE THING THE SERVICES HAVE NEITHER THE FINANCIAL RESOURCES NOR THE PERSONNEL TO DO SO FOR ANOTHER A COMBAT UNIT MUST BE FIT FOR BATTLE AT ALL TIMES IF A SOLDIER IS ON SICK CALL THEN SOMEONE ELSE MUST STAND HIS WATCH FLY HIS AIRCRAFT OR TAKE HIS PLACE IN THE FOXHOLE LIVES ARE INEVITABLY ENDANGERED AS A RESULT TO SAY NOTHING OF THE NATION'S DEFENSES FOURTH MERELY TO FORBID ONDUTY HOMOSEXUAL CONDUCT WILL NOT DETER IT A LARGE BODY OF EVIDENCE INDICATES THAT OVER THE YEARS HOMOSEXUAL SERVICE MEMBERS HAVE CONTINUED TO ENGAGE IN SEXUAL BEHAVIOR EVEN AT THE RISK OF CRIMINAL PROSECUTION THOSE WHO WANT TO MAKE A DISTINCTION BETWEEN ONDUTY BEHAVIOR AND OFFDUTY BEHAVIOR FAIL TO REALIZE THE UNIQUE LEGAL STATUS OF SERVICE MEMBERS WHO ARE IN MANY WAYS ALWAYS ONDUTY FIFTH THE MILITARY MUST MAINTAIN A SENSE OF TRUST AND MUTUAL RELIANCE IN AN ENVIRONMENT THAT IS OFTEN CONFINED AND STRESSFUL SERVICE MEMBERS LIVE TOGETHER SHOWER TOGETHER SLEEP IN CRAMPED QUARTERS TOGETHER AND IN AN EMERGENCY SHARE BLOOD WITH ONE ANOTHER THERE IS NO WAY THAT SUCH ARRANGEMENTS WOULD NOT BE SEVERELY COMPROMISED BY THE PRESENCE OF HOMOSEXUALS THERE IS NO WAY THAT SERVICE MORALE WOULD NOT DETERIORATE AS A RESULT THESE ARE THE HARD FACTS OF MILITARY LIFE THEY CANNOT BE ALTERED BY TRENDY RHETORIC OR GRAND ABSTRACTIONS THEY ARE THE ABSOLUTES UPON WHICH MILITARY POLICY MUST REST WE SHOULD NOT REVERSE A SOUND POLICY BECAUSE WE FAIL TO UNDERSTAND OR FAIL TO REMEMBER THE UNIQUE MISSION OF OUR ARMED FORCES MAJ WELLSPETRY IS THE AUTHOR OF EXCLUSION HOMOSEXUALS AND THE RIGHT TO SERVE REGNERY GATEWAY DUE OUT IN MAY SEE RELATED LETTERS LETTERS TO THE EDITOR GAYS IN MILITARY PROUDLY WE SERVE WSJ MARCH 4 1993 9302010006 9303040166 930304 CANADA AUCTIONS BOND ISSUE THE AVERAGE BID WAS 6237 FOR A PRICE EQUIVALENT OF 101414 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9303040165 930304 MEDICINE CHIRON TO SEEK FDA APPROVAL OF MS DRUG BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL EMERYVILLE CALIF WITH LITTLE FANFARE CHIRON CORP WILL SOON ASK FEDERAL REGULATORS TO APPROVE WHAT COULD BE THE FIRST TREATMENT AIMED AT THE CAUSE OF MULTIPLE SCLEROSIS CHIRON AND ITS PARTNER BERLEX LABORATORIES INC THE RICHMOND CALIF UNIT OF SCHERING AG OF GERMANY HAVEN'T PUBLISHED ANYTHING ABOUT THEIR RESEARCH ON THE DRUG BETASERON BUT WALL STREET ANALYSTS AND UNIVERSITY RESEARCHERS WHO ARE TESTING BETASERON ARE OPTIMISTIC ABOUT THIS SYNTHETIC VERSION OF BETA INTERFERON A PROTEIN THAT FIGHTS INFECTIONS AND REGULATES THE IMMUNE SYSTEM ALL THE SIGNALS ARE THAT TEST RESULTS ARE QUITE GOOD SAYS DAVID STONE AN ANALYST WITH COWAN & CO SO WE'RE EXPECTING THE PRODUCT WILL BE APPROVED QUITE QUICKLY DESPITE THE GENERAL DOWNTURN IN BIOTECH STOCKS CHIRON SHARES HAVE RISEN SHARPLY IN RECENT DAYS AMID THE MARKET'S FAVORABLE SPECULATION ABOUT BETASERON AND CHIRON'S RENEWED FORECAST OF PROFITABILITY THIS YEAR IN OVERTHECOUNTER TRADING YESTERDAY CHIRON SHARES CLOSED UP 1 AT 53 A SHARE ON TUESDAY THE STOCK GAINED 325 CLOSING AT 52 A SHARE THE CHIRON DEVELOPMENT IS ONE OF SEVERAL PROMISING EFFORTS IN THE FIGHT AGAINST MS ANOTHER COMPANY BIOGEN INC OF CAMBRIDGE MASS IS ALSO TESTING BETA INTERFERON STILL OTHERS ARE DEVELOPING AN ARRAY OF NOVEL WEAPONS AGAINST MS WHICH OFTEN CAUSES THE LOSS OF MOTOR FUNCTIONS AND OCCASIONALLY EARLY DEATH THE DEGENERATIVE NERVE DISEASE AFFECTS ABOUT 300000 PEOPLE IN THE US YESTERDAY RESEARCHERS WRITING IN THE BRITISH JOURNAL NATURE IDENTIFIED EXACTLY WHICH CELLS INITIATE THE BODY'S ATTACK ON ITSELF AND PREDICTED THAT THE KNOWLEDGE WILL HELP THEM DEVELOP WAYS TO BLUNT THOSE ATTACKS AND JUST LAST WEEK HARVARD RESEARCHERS INDICATED THAT IN A VERY PRELIMINARY STUDY AN ORAL DRUG MADE OF COW PROTEIN SHOWED SOME PROMISE IN DISARMING ATTACKING CELLS IN CERTAIN PATIENTS WHEN CHIRON AND BERLEX APPEAR BEFORE AN ADVISORY PANEL OF THE FOOD AND DRUG ADMINISTRATION ON MARCH 19 ANALYSTS BELIEVE THEY WILL PRESENT STUDIES SHOWING BETASERON REDUCES THE NUMBER OF TIMES THE DISEASE FLARES UP IN A PATIENT BY ABOUT A THIRD ANALYSTS SAY THAT THE STUDIES WILL ALSO SHOW THAT PATIENTS HAD A DECLINE IN BRAIN LESIONS AS MEASURED BY MAGNETIC RESONANCE IMAGING OF THE BRAIN THE DECLINE IN BRAIN LESIONS MAY MEAN A SLOWING OF THE DISEASE WHICH IN ITS EARLY STAGES IS MARKED BY CYCLES OF REMISSION AND RELAPSE MS IS PROVOKED BY THE DESTRUCTION OF MYELIN A FATTY COATING THAT WRAPS NERVE CELLS IN THE BRAIN AND SPINAL CORD LIKE FRAYED INSULATION AROUND AN ELECTRIC WIRE THIS EROSION DISRUPTS THE TRANSMISSION OF NERVE SIGNALS PATIENTS MAY SUFFER A RANGE OF SYMPTOMS FROM MILDLY SLURRED SPEECH OR BLURRED VISION TO NUMBNESS OR TINGLING AND FINALLY TO MUSCLE SPASM AND PARALYSIS THE DISEASE RUNS IN FAMILIES HITTING WHITES AND FEMALES HARDEST MS HAS BEEN A NOTORIOUSLY DIFFICULT AREA TO WORK IN SAYS HENRY MCFARLAND AN EXPERT AT THE NATIONAL INSTITUTES OF HEALTH ALMOST EVERY DRUG TRIAL TO DATE HAS TO SOME EXTENT FAILED HILLEL PANITCH A BETASERON RESEARCHER AT THE UNIVERSITY OF MARYLAND SAYS IF BETASERON IS APPROVED AS HE HOPES IT WILL BE THE FIRST NEW AND WIDELY ACCEPTED THERAPY FOR MS IN OVER 20 YEARS BUT HE CAUTIONS THAT THE DISEASE IS SO DIFFICULT THAT FDA APPROVAL ISN'T CERTAIN TO DATE DOCTORS HAVE HAD SOME SUCCESS IN MUTING MS SYMPTOMS WITH STEROIDS BUT EFFORTS TO CURE THE ROOT CAUSE OF THE DISEASE WITH STRONGER DRUGS LIKE CYCLOSPORIN USED TO FIGHT TRANSPLANT REJECTION HAVE BEEN HAMPERED BY TOXIC SIDE EFFECTS RECENT RESEARCH HAS BROUGHT INSIGHTS INTO HOW WHITE BLOOD CELLS CALLED TCELLS ATTACK THE MYELIN PROTEIN ONE THEORY SAYS THE ATTACK IS PROVOKED BECAUSE MYELIN RESEMBLES CERTAIN COMMON VIRUSES LIKE MEASLES RESEARCHERS HAVE ALSO FOUND THAT RODENTS WHEN INJECTED WITH MYELIN DEVELOP AN MSLIKE DISEASE IN THE NATURE ARTICLE LAWRENCE STEINMAN OF STANFORD UNIVERSITY IDENTIFIES THE PRECISE SUBGROUP OF HYPERACTIVE TCELLS THAT ATTACK MYELIN THESE TCELLS ISOLATED FROM MS LESIONS MAY INSPIRE AN ARRAY OF NEW THERAPEUTIC STRATEGIES ONE OF THE REASONS WE'RE EXCITED SAYS DR STEINMAN IN AN INTERVIEW IS THAT SURPRISINGLY THE MAIN TCELL GENE EXPRESSED IN THE MS LESION IS IDENTICAL TO WHAT PEOPLE HAVE BEEN STUDYING IN THE ANIMAL MODEL I'M OPTIMISTIC WE CAN IMPLEMENT SOME OF THE THERAPIES IN MAN THAT HAVE WORKED IN THE RODENT DR STEINMAN'S STANFORD TEAM AMONG OTHERS IS DEVELOPING MONOCLONAL ANTIBODIES TO BIND TO TCELLS AND BLUNT THEIR ATTACK HE HAS ALSO LICENSED A DRUG COMPOUND TO CLOSELY HELD NEUROCRINE BIOSCIENCE INC OF SAN DIEGO THE COMPOUND WOULD CROSS THE BLOODBRAIN BARRIER TO ARREST MUTINOUS TCELLS OTHER GROUPS ARE TRYING TO DISARM TCELLS WITH VACCINES USING A SYNTHETIC PEPTIDE FOR ABOUT A DECADE RESEARCHERS HAVE BEEN LOOKING AT HOW THE PROTEIN FAMILY OF INTERFERONS MIGHT HELP REGULATE THE IMMUNE SYSTEMS OF MS PATIENTS GAMMA INTERFERON REVS UP THE IMMUNE SYSTEM AND EXACERBATES MS BUT RESEARCHERS FOUND BETA INTERFERON SEEMS TO CALM THE HYPERACTIVE IMMUNE SYSTEM AND EARLY STUDIES OF THE NATURAL PROTEIN BY LAWRENCE JACOBS A RESEARCHER AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO SHOWED IT LESSENED RELAPSES EXACTLY HOW BETA INTERFERON WORKS IN MS IS STILL SOMETHING OF A MYSTERY BUT SCIENTISTS SPECULATE IT MAY REDUCE TCELL ACTIVITY THAT LEADS TO ATTACKS ON THE MYELIN PROTEIN THEY ALSO THINK IT MAY WORK BY PREVENTING GAMMA INTERFERON FROM TURNING UP THE IMMUNE RESPONSE IN 1990 SCIENTISTS AT TRITON BIOSCIENCES INC A PREDECESSOR OF BERLEX PUBLISHED A BRIEF REPORT IN THE JOURNAL OF INTERFERON RESEARCH CONFIRMING THAT A GENESPLICED VERSION OF BETA INTERFERON ALSO GAVE RELIEF PATIENTS DID DEVELOP ANTIBODIES AGAINST THE DRUG AS WELL AS SORENESS AT THE INJECTION SITE CHIRON AND ITS LICENSEE BERLEX HAVE STUDIED BETASERON IN 372 PATIENTS FOR THREE YEARS BECAUSE ADVANCED MS IS DEEMED LESS TREATABLE VOLUNTEERS HAD THE MODERATE FORM CALLED RELAPSING/REMITTING MS INVOLVING FROM ONE TO FIVE RELAPSES A YEAR THOUGH CHIRON AND BERLEX WON'T DIVULGE RESULTS UNTIL THE FDA MEETING THE FINANCIAL AND SCIENTIFIC COMMUNITIES SAY THE DRUG REDUCED THE RELAPSE RATE 30 TO 40 COMPARED WITH A PLACEBO AND REDUCED THE NUMBER OF BRAIN LESIONS WHICH INDICATE MS ATTACKS WHAT ISN'T CLEAR AND WHAT THE FDA HAS TO DETERMINE IS WHETHER FEWER RELAPSES AND BRAIN LESIONS INDICATE BETASERON CAN SLOW OR HALT THE DISEASE CONVENTIONAL WISDOM HAS HELD THAT REGARDLESS OF RELAPSE RATE MS MOVES AT AN INEXORABLE PACE ULTIMATELY CONFINING PATIENTS TO WHEELCHAIRS AND IN THE WORST CASES TO BEDS BUT NOW SOME ARE BEGINNING TO QUESTION THIS DOGMA I REALLY THINK IF YOU GOT AN AGENT THAT REDUCES RELAPSE RATE YOU'D REDUCE PROGRESSION OVER THE LONG HAUL SAYS DENNIS BOURDETTE OF OREGON HEALTH SCIENCES UNVERSITY WHO IS TESTING BIOGEN INC'S BETA INTERFERON IN PATIENTS 9303040164 930304 CANADA'S PRIME LENDING RATE OTTAWA CANADA'S MAJOR BANKS REDUCED THEIR PRIME LENDING RATE TO 625 FROM 650 EFFECTIVE TODAY THE REDUCTION WAS PROMPTED BY A DECLINE IN RECENT WEEKS IN SHORTTERM INTEREST RATES IN THE CANADIAN MONEY MARKET THE PRIME RATE IS A BENCHMARK FOR VARIOUS BANKLENDING CHARGES THE BANKS ALSO ANNOUNCED REDUCTIONS OF UP TO 07 PERCENTAGE POINT IN THEIR MORTGAGELENDING RATES 9303040163 930304 STRANGE ALLIANCE TWO CONVICTED FELONS HELP MICROSOFT'S GATES HANDLE HIS BILLIONS OLD FRIENDS WHO WENT TO JAIL IN BANK FRAUD NOW HAVE BIG CLOUT ON WALL STREET REMEMBERING THE 3 DINNERS BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP CHAIRMAN WILLIAM HENRY GATES III WITH 68 BILLION OF MICROSOFT STOCK IS ONE OF THE WORLD'S RICHEST MEN HELPING MANAGE HIS FORTUNE ARE A HANDFUL OF PEOPLE BUT NONE QUITE LIKE ANDREW L EVANS AND HIS WIFE MR EVANS AND HIS WIFE ANN LLEWELLYN ARE CONVICTED FELONS WHO HAVE SERVED TIME IN JAIL MR EVANS ALSO HAS A HISTORY OF LEGAL TROUBLES WITH THE SECURITIES AND EXCHANGE COMMISSION YET MR EVANS HAS POWER OF ATTORNEY OVER A GATES PERSONAL PARTNERSHIP WILLIAM H GATES LP WHICH IS A WELLKNOWN TRADING ACCOUNT ON WALL STREET THAT JUST LAST MONTH BOUGHT A 93 STAKE IN LIGAND PHARMACEUTICALS INC MR EVANS ALSO TRADES PART OF THE GATES FORTUNE AND HIS OWN MONEY THROUGH ANOTHER ACCOUNT CALLED DOMINION WHICH IS A BIG BUYER OF HOT STOCK OFFERINGS AND HE MANAGES MR GATES'S QUARTERLY MILLIONSHARE SALES OF MICROSOFT STOCK ALL I DO IS GIVE BILL SOME ADVICE AS A FRIEND MR EVANS SAYS MR GATES 37 AND MR EVANS 41 HAVE BEEN CLOSE FRIENDS SINCE 1978 THEY GOT TO KNOW EACH OTHER IN MICROSOFT'S EARLY DAYS WHEN THEY SHARED TWO PASSIONS FAST CARS AND HOT TECHNOLOGY STOCKS MR GATES IS THE GODFATHER TO ALL THREE OF THE EVANSES' CHILDREN WHO CALL HIM UNCLE BILL MR GATES IS ALSO A FRIEND OF MR EVANS'S 40YEAROLD WIFE WHO WORKS CLOSELY WITH HER HUSBAND BUT DESPITE THE COUPLE'S PAST PROBLEMS BILL GATES WHO AS ONE OF AMERICA'S RICHEST ENTREPRENEURS COULD HAVE HIS PICK OF THE NATION'S BESTKNOWN MONEY MANAGERS HAS CHOSEN HIS TWO OLD FRIENDS TO HELP HANDLE HIS FORTUNE NO ONE HAS SUGGESTED THAT MR EVANS OR HIS WIFE HAVE MISHANDLED THE SOFTWARE TYCOON'S MONEY AND THE EVANSES HAVE BOUNCED BACK FROM THEIR MISADVENTURES THANKS TO HIS MANAGEMENT OF MR GATES'S BIG PERSONAL SALES OF MICROSOFT STOCK MR EVANS HAS ENORMOUS CLOUT ON WALL STREET AND CAN PUSH AROUND THE BIGGEST INVESTMENT BANKS IN RECENT MONTHS FOR EXAMPLE GOLDMAN SACHS & CO MORGAN STANLEY & CO AND ALEX BROWN & SONS HAVE SEPARATELY SHOWERED THE GATES ACCOUNTS WITH THOUSANDS OF SHARES OF REDHOT STOCK OFFERINGS INCLUDING THOSE OF PEOPLESOFT INC AND COMPUWARE CORP THESE ALLOCATIONS OF INITIAL PUBLIC OFFERINGS ENABLED MR GATES AND MR EVANS TO REAP IMMEDIATE SUBSTANTIAL PAPER PROFITS ALSO RECENTLY THE SEC HAS BEGUN QUIETLY GATHERING INFORMATION ABOUT THE DOMINION ACCOUNT FROM THE COMPLIANCE DEPARTMENTS OF SEVERAL WALL STREET SECURITIES FIRMS THE SEC'S DIVISION OF ENFORCEMENT DECLINES TO COMMENT DESPITE REPEATED REQUESTS MR GATES DECLINED TO COMMENT FOR THIS ARTICLE MR EVANS WHO GREW UP IN NORTHERN CALIFORNIA SAYS HE HAS ALWAYS LOVED HOT STOCKS AND FAST CARS AS A BOY HE HABITUALLY READ TWO SECTIONS OF THE NEWSPAPER THE STOCK PAGE AND THE SPORTS PAGE TO FIND STORIES ABOUT AUTO RACING HE MARRIED ANN WHILE BOTH WERE ATTENDING WHITMAN COLLEGE IN WALLA WALLA WASH LATER WORKING AS AN ANALYST AND OVERTHECOUNTER STOCK TRADER HE FIRST MET MR GATES IN MICROSOFT'S EARLY DAYS MR EVANS SAYS HE REPRESENTED A COMPANY THAT SOUGHT TO LICENSE A MICROSOFT COMPUTER LANGUAGE MR EVANS REMINISCES ABOUT THE DAYS WHEN HE AND ANN AND MR GATES HAD MORE FUN AND LESS MONEY THEY ATE 3 DINNERS AT BURGERMASTER WHILE MR GATES TALKED ABOUT TECHNOLOGY MR EVANS WOULD THINK ABOUT STOCKS AND THEY PUT TOGETHER INVESTMENT STRATEGIES THAT WORKED MR EVANS SAYS IT WAS ONE OF THE MOST IMPORTANT FRIENDSHIPS ALL THREE HAD MR EVANS SAYS WHEN THEY WEREN'T TALKING ABOUT TECHNOLOGY STOCKS THEY TALKED ABOUT CARS BILL ALWAYS LIKED FAST CARS MR EVANS SAYS HE HAD AN OLD GREEN PORSCHE 911 HE USED TO TELL ME STORIES ABOUT HIS TRIPS DOWN THE HIGHWAYS OF NEW MEXICO THE SPINNING 360S THAT HE DID THEY WERE THE BEST DAYS OF OUR LIVES IN 1980 MR EVANS AND HIS WIFE STARTED A SEATTLEAREA BROKERAGE FIRM EVANS LLEWELLYN SECURITIES FACING BIG EXPENSES AND STRAPPED FOR CASH MR EVANS SAYS THEY BADLY NEEDED MONEY TO KEEP UP WITH REGULATORY CAPITAL REQUIREMENTS HE SAYS HE TOOK OUT A LARGE BANK LOAN AND SIGNED DOCUMENTS SAYING IT WAS TO BUY REAL ESTATE IN JANUARY 1985 THE SEC SUSPENDED MR EVANS FROM THE SECURITIES BUSINESS FOR 30 DAYS FOR AIDING AND ABETTING A CUSTOMER'S SALE OF RESTRICTED STOCK IN 1981 MR EVANS SETTLED THE SEC ADMINISTRATIVE ACTION BY AGREEING TO THE SUSPENSION WITHOUT ADMITTING OR DENYING WRONGDOING LATER IN 1985 MR EVANS AND HIS WIFE PLEADED GUILTY IN SEATTLE FEDERAL COURT TO CHARGES RELATED TO THE EARLIER BANK LOAN IN THEIR PLEA THEY ADMITTED THAT THEY HELPED A BANK OFFICER FRAUDULENTLY TRANSFER 525000 OUT OF A BARCLAYS BANK PLC BRANCH THEY WERE SENTENCED TO SIXMONTH JAIL TERMS ON CHARGES RELATED TO BANK FRAUD AND AGREED TO PAY RESTITUTION TO BARCLAYS WE KNEW WE WERE BREAKING THE LAW BUT WE THOUGHT WE COULD PAY IT BACK HE SAYS WE WERE 30 YEARS OLD STUPID AND NAIVE WE JUST DIDN'T KNOW HOW TO QUIT WE DIDN'T KNOW HOW TO THROW IN THE TOWEL IN 1986 THE SEC FILED A CIVIL COMPLAINT IN SEATTLE FEDERAL COURT AGAINST MR EVANS ALLEGING INSIDER TRADING MARKET MANIPULATION AND OTHER SECURITIESLAW VIOLATIONS THE COMPLAINT CITED HIS ALLEGED ACTIVITIES AS A CORPORATE BOARD MEMBER AND TRADER IN THE STOCK OF CMC INTERNATIONAL INC THE COMPLAINT ALLEGED THAT MR EVANS LEARNED OF AN IMPENDING LOSS AT THE TECHNOLOGY COMPANY AND DUMPED A LARGE STOCK POSITION PRIOR TO THE PUBLIC ANNOUNCEMENT MR EVANS SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING ANY VIOLATIONS HE CONSENTED TO A PERMANENT INJUNCTION THAT COULD SUBJECT HIM TO CIVIL OR CRIMINAL CHARGES FOR ANY FUTURE SECURITIES VIOLATIONS THE SEC SAYS HE WAS BARRED FROM THE SECURITIES INDUSTRY WITH THE RIGHT TO REAPPLY AFTER SEVERAL YEARS MR GATES WAS IN THE FEDERAL COURTROOM WHEN HIS FRIENDS WERE SENTENCED TO GEIGER FIELD PRISON IN THE BANK SCAM HE CAME TO VISIT US IN JAIL MR EVANS SAYS AT THE TIME OF HIS LEGAL TROUBLES MR EVANS SAYS HE WAS IN SERIOUS FINANCIAL DIFFICULTY TODAY HE IS LIVING THE GOOD LIFE THE RESULT OF LONG HOURS DEVOTED TO TRADING STOCKS SAYS MS LLEWELLYN WHO ADDS NOBODY HAS GIVEN US ANYTHING MR EVANS NOW HAS HIS OWN RACING TEAM SCANDIA MOTOR SPORTS PHOTOS OF MR EVANS AND TWO SCANDIA CARS IN BRILLIANT COLORS WERE FEATURED IN A RECENT RACING YEARBOOK MR EVANS ALSO HELPED DRIVE THE SCANDIA TEAM TO A THIRDPLACE FINISH AT THE MIAMI GRAND PRIX LAST MONTH TO REACH THE TRACKS MR EVANS AND HIS WIFE FLY AROUND THE COUNTRY IN A LEASED PRIVATE PLANE MR EVANS AND HIS WIFE WORK FROM THEIR HOME IN MILL CREEK A SEATTLE SUBURB ABOUT 10 MILES FROM MR GATES'S HOUSE THEY ARE UP AROUND 5 AM DIALING BROKERS AND TRADING STOCKS FOR ACCOUNTS THAT HANDLE THE GATES MONEY AND THEIR OWN MR GATES IS THE SOLE GENERAL AND LIMITED PARTNER IN WILLIAM H GATES LP ACCORDING TO FILINGS WITH WASHINGTON STATE AS FOR DOMINION MR EVANS AND HIS WIFE MAY BE THE ONLY ONES WHO REALLY KNOW WHAT GOES ON DOMINION IS THE VEHICLE BY WHICH ANN AND I INVEST OUR OWN PERSONAL FUNDS HE EXPLAINS IN ONE OF A SERIES OF TELEPHONE INTERVIEWS DOMINION IS ALSO THE NAME THAT IS KNOWN ON THE STREET AS THE ACCOUNT ANN AND I HAVE LIMITED POWER OF ATTORNEY TO BUY AND SELL FOR BILL HE ADDS MR EVANS SAYS TWO FORMER MICROSOFT OFFICIALS WHO ALSO GIVE MR GATES FINANCIAL ADVICE CRAIG WATJEN AND STEVEN W GRAY GET A REPORT MR WATJEN RETIRED AS ASSISTANT TREASURER OF MICROSOFT IN JUNE 1990 AND TODAY HANDLES MUCH OF MR GATES'S BOND INVESTMENTS MR GRAY RETIRED AS MICROSOFT'S COMPTROLLER IN MAY 1991 AND BECAME MR GATES'S PERSONAL ACCOUNTING ASSISTANT ABOUT A YEAR AGO TO HELP THE BILLIONAIRE WATCH HIS MONEY UNTIL A YEAR AGO MR EVANS KEPT THE REVENUE GENERATED FROM MR GATES'S SALES OF MICROSOFT STOCK FOR INVESTMENT PURPOSES TODAY THE PROCEEDS GO TO AN ACCOUNT OVER WHICH MR WATJEN HAS POWER OF ATTORNEY NOW MR WATJEN SAYS ANDY HAS A SET POOL OF CASH TO WHICH I DON'T ADD BOTH MR WATJEN AND MR GRAY SAY THEY REVIEW BUT DON'T AUDIT MR EVANS'S OPERATION THEY SAY THEY KNOW HOW MUCH MR EVANS AND HIS WIFE MANAGE FOR WILLIAM H GATES III LP BUT DECLINE FURTHER COMMENT TO PROTECT MR GATES'S PRIVACY MR GRAY SAYS HE SIMPLY RECEIVES A MONTHLY SUMMARY OF MR EVANS'S TRADING MOST OF IT IN INITIAL PUBLIC STOCK OFFERINGS MR GRAY ADDS I DON'T KNOW DOMINION WHAT IT IS OR WHAT IT'S INTENDED TO BE THE SUMMARIES MAY NOT SPECIFY THE TRADING ACCOUNTS USED MR GRAY SAYS HE HEARD OF DOMINION ONLY ABOUT 10 DAYS AGO MR EVANS AND HIS WIFE MR GRAY EXPLAINS HAVE THE MONEY AND THE INFLUENCE THEY HAVE THE RELATIONSHIPS WITH WALL STREET HE ADDS I THINK THESE PEOPLE THE BROKERS WOULD RATHER NOT DO BUSINESS WITH ANN AND ANDY IF IT WASN'T FOR BILL EACH QUARTER MR GATES NORMALLY SELLS ABOUT A MILLION MICROSOFT SHARES FROM HIS MAMMOTH PERSONAL STAKE OF 81 MILLION SHARES THE SALES CAN ENABLE THE LUCKY WALL STREET FIRMS THAT HANDLE THEM TO MAKE MILLIONS OF DOLLARS IN ADDITION BROKERS WANT THE PRESTIGE OF DEALING WITH MR GATES'S PERSONAL SHARES AND THE MARKETMAKING POWER IN MICROSOFT STOCK MR EVANS'S MANAGEMENT OF THESE SALES A ROLE CONFIRMED BY MESSRS WATJEN AND GRAY GIVES HIM SIGNIFICANT INFLUENCE ON WALL STREET MR EVANS SAYS HE HANDS THESE SHARES OUT TO GOLDMAN SACHS MICROSOFT'S MAIN INVESTMENT BANKER AND TO ALEX BROWN IN BALTIMORE HOW DOES MR EVANS'S INFLUENCE WORK HOT INITIAL PUBLIC OFFERINGS ARE HIGHLY PRIZED ON WALL STREET INDIVIDUAL INVESTORS FREQUENTLY CAN'T BUY THE SHARES AT THE OFFERING OR GET ONLY A HANDFUL ONE OF GOLDMAN'S HOTTEST DEALS LAST YEAR WAS THE NOV 18 INITIAL PUBLIC OFFERING FOR PEOPLESOFT A WALNUT CREEK CALIF SOFTWARE COMPANY AT 17 A SHARE ON THE FIRST DAY OF TRADING THE STOCK SOARED 80 TO 3025 GOLDMAN INITIALLY ALLOCATED THE WILLIAM H GATES LP ACCOUNT A MODEST 5000 SHARES BUT MR EVANS DEMANDED MORE STOCK FORGET THE BILL GATES NAME OR THE MICROSOFT BANKING RELATIONSHIP WITH GOLDMAN HE SAYS THE GATES ACCOUNTS ARE AN IMPORTANT SOURCE OF COMMISSION DOLLARS FOR GOLDMAN HE SAYS SO I DON'T NEED TO USE THE BILL GATES NAME MR EVANS WANTED AT LEAST 10000 MORE PEOPLESOFT SHARES THIS IS WHAT ALLOCATION WE EXPECT GIVEN ALL THE BUSINESS WE WERE DOING MR EVANS SAYS HE ADDS THAT GOLDMAN SACHS DID ALLOCATE ANOTHER 10000 SHARES GOLDMAN DECLINES TO COMMENT ON DEC 8 MR EVANS FLEW TO NEW YORK TO VISIT GOLDMAN'S 85 BROAD ST HEADQUARTERS HE HAD BREAKFAST IN GOLDMAN'S DINING ROOM 7 WITH LAWTON FITT A GOLDMAN INVESTMENT BANKER WHO MR EVANS SAYS IS THE CAPTAIN OF GOLDMAN'S SCIENCE AND TECHNOLOGY STOCK OFFERINGS DONALD OPATRNY JR A GOLDMAN PARTNER JOINED MR EVANS AND MS FITT AT THE BREAKFAST MR EVANS SAYS THEY TALKED ABOUT MICROSOFT STOCK DEALS AND MR EVANS'S INTEREST IN MS FITT'S DEALS SHE WANTED TO FIND OUT HOW WE WORKED AND HOW WE MADE OUR DECISIONS MR EVANS SAYS MR EVANS SAYS HE ALSO MET WITH GOLDMAN MANAGING PARTNER ROY ZUCKERBERG A VERY IMPORTANT MAN MR EVANS CONTINUED TO PUT BIG MONEY INTO GOLDMAN DEALS THAT'S WHAT MR EVANS DID ON FEB 11 WHEN GOLDMAN SOLD 46 MILLION SHARES FOR SEQUENT COMPUTER SYSTEMS OF BEAVERTON ORE AT 21125 EACH A GATES ACCOUNT BOUGHT 150000 SHARES MR EVANS SAYS AND TO HELP GOLDMAN SUPPORT THE STOCK AFTER THE OFFERING HE SAYS HE ORDERED ANOTHER 400000 SHARES IN THE OPEN MARKET BIG AFTERMARKET ORDERS LIKE THAT ARE CRITICAL FOR UNDERWRITERS SUCH AS MS FITT THEY SUPPORT PRICES OF THE NEW STOCK AND CAN HELP MAKE THE DEALS SUCCESSFUL EVEN WITH THE EVANS ORDER SEQUENT SHARES SOON SLUMPED BELOW 20 A SHARE EMBARRASSING GOLDMAN I AM SURE SHE MS FITT IS UNHAPPY ABOUT THAT MR EVANS SAYS WE MADE SOME MONEY IN PEOPLESOFT BUT WE ARE ALSO UNDER WATER IN SEQUENT HE SAYS ON FEB 18 GOLDMAN HANDLED A 500000SHARE SALE OF MR GATES'S MICROSOFT SHARES THE NEXT DAY ALEX BROWN DID A 625000SHARE SALE OF MR GATES'S STOCK WE ROTATE BETWEEN ALEX AND GOLDMAN MR EVANS EXPLAINS MORGAN STANLEY WOULD LIKE THAT BUSINESS LAST DEC 18 ALEX BROWN UNDERWROTE AN INITIAL OFFERING OF 44 MILLION SHARES FOR CAPITOL AMERICAN FINANCIAL CORP A CLEVELANDBASED INSURER AT 24 EACH THE STOCK SOARED 19 ON ITS FIRST DAY OF TRADING THE DOMINION ACCOUNT RECEIVED A 40000SHARE ALLOCATION BUT MR EVANS SAYS HE CAN'T REMEMBER WHETHER HE BOUGHT FOR MR GATES OR FOR HIMSELF AND HIS WIFE SOMETIMES WE PUT IN AND SOMETIMES WE DON'T HE SAYS WE DON'T HAVE THE MONEY BILL HAS AB KRONGARD ALEX BROWN'S CHIEF EXECUTIVE SAYS DOMINION IS AS FAR AS I KNOW A WELLESTABLISHED WELLTHOUGHTOF INSTITUTION THAT TRADES ON THE STREET WHEN PEOPLE THINK OF DOMINION THEY THINK OF BILL GATES ULTIMATELY THAT IS THE MONEY FOR DOMINION MORGAN STANLEY EXECUTIVES HAVE ALSO ACCOMMODATED MR EVANS AND THE GATES MONEY WITH GENEROUS STOCK ALLOCATIONS ON DEC 16 MORGAN STANLEY PRICED AN INITIAL OFFERING OF 82 MILLION SHARES FOR COMPUWARE A FARMINGTON HILLS MICH SOFTWARE COMPANY AT 22 EACH WILLIAM H GATES LP GOT 30000 SHARES THE STOCK SOARED AS MUCH AS 28 ON THE FIRST DAY OF TRADING ON JAN 20 MORGAN STANLEY OFFERED ONE OF THE YEAR'S HOTTEST DEALS THE 44MILLIONSHARE INITIAL OFFERING FOR GENERAL NUTRITION COS A PITTSBURGHBASED NUTRITIONSUPPLEMENT RETAILER MORGAN STANLEY PRICED THE STOCK AT 16 A SHARE AND IT ROSE AS MUCH AS 375 ON THE FIRST DAY AND KEPT RISING IN SUBSEQUENT DAYS THE DOMINION ACCOUNT RECEIVED A 30000SHARE ALLOCATION I AM THE ONE THAT DECIDED TO GO AFTER GENERAL NUTRITION MR EVANS SAYS I AM THE ONE THAT HAS THE DISCRETION HE ADDS I DON'T KNOW IF BILL KNOWS ANYTHING SPECIFICALLY ABOUT GENERAL NUTRITION HE BELIEVES IN DIVERSIFICATION FROM TECHNOLOGY COMPANIES AND HE GIVES ME DISCRETION MORGAN STANLEY RECENTLY TOOK AN IMPORTANT STEP TOWARD GETTING CLOSER TO MR EVANS AND THE GATES FORTUNE MANAGING DIRECTOR JOSEPH P O'CONNOR JR WHO RUNS MORGAN STANLEY'S PRIVATE BANKING UNIT IN SWITZERLAND FLEW TO MILL CREEK AND MADE A PRESENTATION TO MR EVANS MR O'CONNOR HAD ONCE BEEN IN CHARGE OF DEALING WITH WEALTHY PEOPLE SUCH AS MR GATES FROM MORGAN STANLEY'S LOS ANGELES OFFICE MR EVANS SAYS MR O'CONNOR INVITED HIM TO MAKE MR GATES A PARTNER WITH MORGAN STANLEY AND OTHERS IN A PRIVATE INVESTMENT FUND CALLED PRINCES GATE MR EVANS SAYS HE COMMITTED 50 MILLION OF MR GATES'S MONEY TO THE PRIVATE FUND MORGAN STANLEY WON'T COMMENT ABOUT PRINCES GATE OR ITS DEALINGS WITH MR EVANS BUT THE PRIVATE FUND HAS ALREADY BEEN VERY USEFUL TO MORGAN STANLEY AND A CLIENT LAST FALL BARNES & NOBLE THE DEBTHEAVY BOOKSELLER TRIED TO SELL STOCK WITH MORGAN STANLEY'S HELP THE PUBLIC OFFERING WAS SHELVED AND MORGAN STANLEY BOUGHT THE STOCK ITSELF WITH THE PRINCES GATE FUND ABOUT 7 MILLION OF MR GATES'S MONEY IS IN BARNES & NOBLE STOCK MR EVANS SAYS ALL THE MANAGING DIRECTORS REVIEW THE DEALS SAYS MR EVANS EXPRESSING CONFIDENCE IN MORGAN STANLEY THERE'S GOOD DUE DILIGENCE ON EACH DEAL BUT NOT ALL WALL STREET FIRMS DEAL WITH MR GATES'S MONEY ON MR EVANS'S TERMS ALTHOUGH MERRILL LYNCH & CO HAS HAD AN ACCOUNT IN THE NAME OF WILLIAM H GATES LP IN ITS SAN FRANCISCO OFFICE FOR A FEW YEARS MERRILL OFFICIALS ARE APPARENTLY UNWILLING TO SELL IT NEW STOCK OFFERINGS THE OFFICIALS WON'T COMMENT CITING CLIENT CONFIDENTIALITY BUT IT IS KNOWN THAT MERRILL LYNCH HAS NEVER HANDLED SALES OF MR GATES'S PERSONAL STOCK MERRILL RECENTLY REINFORCED ITS STANDOFF WITH MR EVANS ON DEC 18 MERRILL HANDLED A HOT NEW STOCK OFFERING OF 5347500 SHARES FOR MAYBELLINE INC THE MEMPHISBASED COSMETICS COMPANY AT 2350 EACH WHEN MERRILL WAS PUTTING TOGETHER THE ALLOCATION LIST IT RECEIVED AN INQUIRY FROM SMITH BARNEY HARRIS UPHAM & CO FOR STOCK FOR AN ACCOUNT CALLED LINCOLN MANAGEMENT THE NAME SOUNDED A LOT LIKE A GIANT CHICAGO MONEYMANAGEMENT FIRM LINCOLN CAPITAL MANAGEMENT MERRILL OFFICIALS ASKED WHO LINCOLN MANAGEMENT WAS AND WERE TOLD IT WAS MR GATES'S MONEY THEY THEN CALLED CONTACTS AROUND THE COUNTRY TO FIND OUT WHETHER MR GATES OR MR EVANS WAS BEHIND THE LINCOLN NAME MR EVANS SAYS HE SOMETIMES USES THE LINCOLN NAME MERRILL OFFICIALS REFUSED TO SELL ANY MAYBELLINE STOCK TO THE LINCOLN ACCOUNT MAYBELLINE SHARES CLIMBED 165 ON THEIR FIRST DAY OF TRADING MR EVANS SAYS HE GOT MAYBELLINE SHARES ANYWAY THROUGH SMITH BARNEY A SMITH BARNEY SPOKESMAN SAYS THE ASSERTION THAT OUR SYNDICATE DESK WENT TO MERRILL ASKING FOR STOCK FOR THE TRANSACTION IS UNTRUE MR EVANS SAYS HE HAS PUT HIS FRIEND'S MONEY INTO A LOT OF OTHER DEALS ON WALL STREET AND MADE MONEY EVERY YEAR FOR THE ALREADY WEALTHY SOFTWARE KING MR EVANS SAYS IT IS SIMPLE DOMINION TRADES FOR BILL GATES AND ANDY AND ANN MR EVANS SAYS HE SOMETIMES PAYS A LITTLE MORE FOR STOCK BOUGHT FOR HIS PERSONAL ACCOUNT THAN MR GATES DOES SO THERE IS NO CONFLICT HE SAYS OR I WOULD BUY IN THE AFTERMARKET ALL I AM IS BILL'S FRIEND MR EVANS SAYS I HAVE NO OFFICIAL CAPACITY I DON'T GET COMPENSATED FOR THIS AT ALL 9303040162 930304 BOOST CIGARETTE TAX TO 3 CALIFORNIA DOCTORS PROPOSE ANAHEIM CALIF THE CALIFORNIA MEDICAL ASSOCIATION SAID IT WILL SPONSOR LEGISLATION TO BAN SMOKING IN ALL PUBLIC PLACES AND WORKPLACES IN THE STATE AND TO SUPPORT AN INCREASE IN THE STATE CIGARETTE EXCISE TAX TO 3 A PACK FROM 25 CENTS THE CMA WHICH REPRESENTS 38000 PHYSICIANS SAID TOBACCORELATED ILLNESSES ARE THE NO 1 PREVENTABLE CAUSE OF DEATH IN THE US IT BELIEVES SOME SMOKERS WILL BE MOTIVATED TO QUIT SMOKING IF THE PRICE IS RAISED CUTTING SMOKING IS A FEASIBLE WAY TO CUT 15 FROM TOTAL HEALTH CARE EXPENDITURES BY REDUCING THE INCIDENCE OF CANCERS HEART DISEASE AND OTHER ILLNESSES RELATED TO TOBACCO USE THE GROUP SAID CMA WAS INVOLVED IN A 1988 EFFORT THAT LEVIED THE 25 CENT STATE TAX 9303040161 930304 WORLD MARKETS LONDON SHARES RALLY TO A RECORD ON OPTIMISM ABOUT GROWTH FOR BRITAIN TOKYO STOCKS SOFTEN A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARE PRICES RALLIED 13 TO A RECORD YESTERDAY PARTLY ON OPTIMISM ABOUT BRITAIN'S GROWTH PROSPECTS TOKYO EQUITIES SOFTENED AS THE YEN'S STRENGTH DOGGED FRAGILE MARKET SENTIMENT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 363 POINTS TO 29186 SURPASSING THE CLOSING HIGH OF 28826 SET MONDAY THE FT 30STOCK INDEX JUMPED 313 POINTS OR 14 TO 22646 VOLUME WAS 7103 MILLION SHARES UP SHARPLY FROM 5733 MILLION SHARES A DAY EARLIER THE MARKET WAS HELPED BY TUESDAY'S SURGE ON WALL STREET THE OUTLOOK FOR LOWER EUROPEAN INTEREST RATES AND INCREASINGLY UPBEAT EXPECTATIONS FOR BRITAIN'S HOUSING AND RETAIL SECTORS AMID SIGNS OF ECONOMIC RECOVERY AND SHORTCOVERING OF OVERSOLD POSITIONS TAKEN EARLIER IN BETS THAT PRICES WOULD DECLINE THE MARKET ALSO WAS ATTRACTING FUNDS AFTER A SLOWDOWN IN THE PACE OF COMPANIES' STOCKRIGHTS ISSUES WHICH STIFLED THE MARKET LAST MONTH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 1535 POINTS TUESDAY SLIPPED 1033 TO 1685392 ON THURSDAY IN TOKYO THE NIKKEI INDEX FELL 7926 POINTS TO CLOSE THE MORNING SESSION AT 1677466 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES COMPARED WITH 2282 MILLION SHARES ON TUESDAY DECLINERS TOPPED GAINERS 497458 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 043 POINT TUESDAY DECLINED 324 TO 127258 INVESTORS SHRUGGED OFF A RALLY IN THE TELECOMMUNICATIONS AND RELATED SECTORS ON TALK THAT JAPAN'S GOVERNMENT WILL STEP UP ITS INVESTMENT IN THAT ARENA BUT THOSE ROBUST GAINS WERE HIT BY A NEW BOUT OF YEN STRENGTH AGAINST THE DOLLAR WHICH KNOCKED DOWN EXPORTORIENTED BLUE CHIPS PARTICIPANTS ALREADY WERE EDGY WITH WIDESPREAD EXPECTATIONS OF STIFF SELLING PRESSURE AHEAD OF THE SPECIAL QUOTATIONS SETTLEMENT OF QUARTERLY FUTURES AND OPTIONS IN FRANKFURT STOCK PRICES FINISHED SLIGHTLY LOWER AFTER BEING PULLED DOWN FROM THE DAY'S HIGHS BY PROFITTAKING THE DAX 30STOCK INDEX FELL 301 POINTS TO 169373 NEAR THE INTRADAY LOW OF 169263 AFTER TRADING AS HIGH AS 170986 SHORTLY AFTER THE OPENING WHILE HOPES HAD BEEN LOWERED A BIT THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WILL CUT INTEREST RATES IN A MEETING TODAY INVESTORS STILL HADN'T RULED THIS OUT AND DESPITE PREVALENT UNCERTAINTY FINANCIAL SHARES GAINED ON THE HOPES FOR A MONETARY EASING THE GERMAN RATE OUTLOOK ALSO WEIGHED ON STOCKS THROUGHOUT EUROPE IN PARIS PRICES CLOSED MOSTLY LOWER IN MODERATELY ACTIVE TRADING AND DOWN FROM GAINS EARLY IN THE SESSION AS INVESTORS BECAME MORE CIRCUMSPECT ABOUT THE GERMAN RATE OUTLOOK THOUGH THE FRENCH MARKET IS UP 74 THIS YEAR IT WAS VIEWED AS BEING IN SEARCH OF A TRADING LEVEL AFTER RECENT GAINS AMSTERDAM STOCKS POSTED SMART RISES THOUGH SOME SECTORS WEAKENED SUCH AS FINANCIAL STOCKS ON INVESTORS' DOUBTS THAT GERMANY WILL REDUCE LENDING RATES TODAY IN MADRID WHERE HOPES FOR A GERMAN RATE CUT ALSO EBBED STOCKS STILL EDGED HIGHER INDICATING UNDERLYING DEMAND ON EXPECTATIONS OF A DECLINE IN SPANISH RATES OVER THE LONG TERM MILAN STOCKS FINISHED UP FROM LOWS AS A LATE RECOVERY ERASED MOST EARLY LOSSES FROM PROFITTAKING AFTER THE SHARP GAINS OF THE PAST FEW WEEKS STOCKHOLM PRICES ROSE SUPPORTED BY TUESDAY'S GAINS ON WALL STREET AND BY LOWER SWEDISH INTEREST RATES ZURICH SHARES ALSO ENDED WITH GAINS DESPITE SOME LATE PROFITTAKING THAT WAS OVERCOME BY LOWER SWISS MONEY MARKET RATES MANY INVESTORS SWITCHED FROM FINANCIAL ISSUES INTO CHEMICAL AND FOOD SHARES WITH STRONG EARNINGS PROSPECTS HONG KONG SHARES HEADED TOWARD RECORD TERRITORY AS THE BRITISH COLONY'S BUDGET PLANS FOR THE COMING FISCAL YEAR UNVEILED YESTERDAY PROMPTED STRONG WAVES OF BUYING THE HANG SENG INDEX SURGED 9241 POINTS OR 15 TO 643664 NEAR THE RECORD OF 6447 ACHIEVED LAST NOVEMBER SYDNEY'S MARKET FELL FROM ITS HIGHEST LEVELS IN SEVEN MONTHS AS A BOUT OF PROFITTAKING KNOCKED PRICES DOWN IN TAIPEI AFTER A STEEP FALL A DAY EARLIER PRICES REBOUNDED STRONGLY IN EXTREMELY BUSY TRADING MANILA SHARES REBOUNDED REVERSING TWO CONSECUTIVE SESSIONS OF LOSSES AS THE MARKET WAS BUOYED BY REPORTS THE JAPANESE GOVERNMENT WILL PRESENT A 1 BILLION LOAN PACKAGE WHEN PHILIPPINE PRESIDENT FIDEL RAMOS VISITS TOKYO NEXT WEEK SEOUL EQUITIES SOFTENED AS THE MARKET HAS SHOWN LITTLE POSITIVE RESPONSE TO EXPECTED ACTIONS BY THE NEW SOUTH KOREAN GOVERNMENT AIMED AT REVIVING THE ECONOMY AMONG CORPORATE DEVELOPMENTS IN TOKYO KAWASAKI STEEL ROSE 3 YEN OR 11 TO 287 YEN 244 THE STEELMAKER IS CONSIDERING DRAWING RESERVES TO PAY ITS DIVIDEND OF 3 YEN A SHARE FOR THE SECOND HALF OF THE YEAR ENDING MARCH 31 FACING A SEVERE BUSINESS ENVIRONMENT THE COMPANY HAS PREDICTED IT WILL BREAK EVEN ON AN UNCONSOLIDATED BASIS FOR THE FISCAL YEAR AFTER A SECONDHALF LOSS OFFSETTING FIRSTHALF PROFIT OF 372 BILLION YEN 316 MILLION PRETAX PROFIT IS EXPECTED TO DROP 81 TO 8 MILLION YEN IN LONDON HSBC HOLDINGS JUMPED 24 PENCE OR 4 TO 624 PENCE 903 ON NEWS THAT ITS NEWLY ACQUIRED MIDLAND BANK UNIT'S 1992 PRETAX EARNINGS SOARED TO 178 MILLION FROM 36 MILLION IN 1991 INCLUDING A SPECIAL ITEM OF 122 MILLION FOR RESTRUCTURING IN CONNECTION WITH THE JULY ACQUISITION MIDLAND ALSO SAID IT EXPECTS ITS FIRSTDIRECT TELEPHONEBANKING DIVISION TO BE PROFITABLE FOR THE FIRST TIME THIS YEAR IN HONG KONG TRADING HSBC SHARES ROSE 150 HONG KONG DOLLARS TO HK66 US853 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 9303040160 930304 INTELLIGENT ELECTRONICS INC DEBT EXTON PA INTELLIGENT ELECTRONICS INC SAID IT RETIRED ABOUT 30 MILLION IN SUBORDINATED DEBT AND EXPECTS TO RECORD A ONETIME CHARGE OF 33 MILLION OR NINE CENTS A SHARE IN ITS YEAR ENDED JAN 30 THE COMPUTER RESELLER AND RETAILER SAID IT HAS ELIMINATED ESSENTIALLY ALL OF ITS LONGTERM DEBT 9303040159 930304 FINANCING BUSINESS MARK IV INDUSTRIES INC MARK IV INDUSTRIES INC SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AN OFFERING OF 225 MILLION IN SENIOR SUBORDINATED NOTES DUE 2003 BEAR STEARNS & CO UNDERWRITER OF THE OFFERING WILL HAVE A 33 MILLION OVERALLOTMENT OPTION MARK IV SAID PROCEEDS WILL BE USED TO FINANCE A TENDER OFFER TO PURCHASE FOR CASH ANY OR ALL OF THE 1902 MILLION OUTSTANDING OF ITS 13375 SUBORDINATED DEBENTURES DUE 1999 THE TENDER PRICE HASN'T BEEN DETERMINED MARK IV AMHERST NY MAKES EQUIPMENT FOR POWER TRANSFER FLUID HANDLING TRANSIT AND TRAFFIC CONTROL AND PROFESSIONAL AUDIO APPLICATIONS 9303040158 930304 HYCOR BIOMEDICAL PLANT CLOSING GARDEN GROVE CALIF HYCOR BIOMEDICAL INC SAID IT WILL TAKE A ONETIME CHARGE OF ABOUT 800000 OR NINE CENTS A SHARE FOR THE FIRST QUARTER REFLECTING THE CLOSING OF A PLANT IN PORTLAND MAINE IN THE YEAREARLIER QUARTER HYCOR HAD NET INCOME OF 797000 OR NINE CENTS A SHARE ON SALES OF 69 MILLION HYCOR'S VENTREX LINES OF ALLERGY DIAGNOSTIC AND IMMUNODIAGNOSTIC PRODUCTS WERE PRODUCED AT THE 70000SQUAREFOOT PLANT WHICH THE COMPANY PLANS TO CLOSE BY LATE JULY THOSE LINES WILL NOW BE PRODUCED AT HYCOR'S EXISTING FACILITY IN GARDEN GROVE HYCOR SAID ALL OF ITS 75 PORTLAND EMPLOYEES HAVE BEEN OFFERED EMPLOYMENT IN CALIFORNIA AS WELL AS RELOCATION PACKAGES THE MAKER OF MEDICAL DIAGNOSTIC PRODUCTS SAID THE CLOSURE AND RELATED CONSOLIDATION ACTIVITIES ARE ANTICIPATED TO YIELD ANNUAL SAVINGS OF ABOUT 500000 9303040157 930304 MITEL RAISES 361 MILLION KANATA ONTARIO MITEL CORP SAID IT RAISED 45 MILLION CANADIAN DOLLARS US361 MILLION FROM THE SALE OF 21951220 COMMON SHARES AT C205 A SHARE THE TELECOMMUNICATIONS EQUIPMENT MAKER SAID PROCEEDS WILL BE USED TO PAY OFF BANK LOANS AND FOR WORKING CAPITAL UNDERWRITERS FOR THE OFFERING WERE SCOTIA MCLEOD INC MIDLAND WALWYN CAPITAL INC AN WOOD GUNDY INC FOUR FIRMS ADVISED BY SCHRODER VENTURES AN AFFILIATE OF THE BRITISH MERCHANT BANK SCHRODERS PLC AGREED TO BUY 4878049 SHARES FOR C10 MILLION SCHRODER VENTURES' CANADIAN AFFILIATE IS A MAJOR MITEL SHAREHOLDER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY MITEL SHARES WERE QUOTED AT US175 UP 125 US CENTS THE SHARES WEREN'T OFFERED IN THE US 9303040156 930304 CANADIAN FIRMS' OPERATIONS OTTAWA CANADIAN INDUSTRY OPERATED AT 78 OF CAPACITY IN THE 1992 FOURTH QUARTER UP FROM A 774 RATE IN THE PREVIOUS THREE MONTHS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE FOURTHQUARTER INCREASE WAS LED BY PRODUCERS OF PAPER AND ALLIED PRODUCTS WHOSE CAPACITY UTILIZATION RATE ROSE TO 943 FROM 868 IN THE JULYSEPTEMBER PERIOD 9303040155 930304 INTERNATIONAL CIE DE SUEZ'S LOSS FOR '92 WAS WIDER THAN EXPECTED A WALL STREET JOURNAL NEWS ROUNDUP BAD REAL ESTATE LOANS DROVE FRANCE'S CIE DE SUEZ DEEP INTO THE RED LAST YEAR FORCING THE CONGLOMERATE TO ANNOUNCE A MUCH GREATER LOSS FOR 1992 THAN EXPECTED CHAIRMAN GERARD WORMS SAID IN PARIS THAT THE COMPANY SHOWED A LOSS OF BETWEEN 18 BILLION FRANCS 323 MILLION AND 19 BILLION FRANCS 341 MILLION LAST YEAR COMPARED WITH A PROFIT OF 38 BILLION FRANCS IN 1991 PRIOR TO THE ANNOUNCEMENT LATE YESTERDAY MARKET ANALYSTS HAD BEEN EXPECTING A DEFICIT OF 500 MILLION TO ONE BILLION FRANCS ANNOUNCING THE ESTIMATED LOSS AT A NEWS CONFERENCE YESTERDAY EVENING MR WORMS SAID HE WAS CONFIDENT THAT A HEFTY LEVEL OF PROVISIONING WOULD ALLOW THE GROUP TO RETURN TO PROFITABILITY THIS YEAR HE ALSO LAID OUT BROAD PLANS TO REFOCUS THE SPRAWLING COMPANY ON ITS FORMER CORE BUSINESS OF FINANCIAL SERVICES THIS MARKS SOMETHING OF AN ABOUTFACE FOR THE GROUP WHICH ONLY RELATIVELY RECENTLY ACQUIRED EXTENSIVE INTERESTS IN INDUSTRY AND INSURANCE BARELY 2 1/2 YEARS AGO THE COMPANY CHANGED ITS NAME FROM CIE FINANCIERE DE SUEZ TO CIE DE SUEZ SUEZ WILL ANNOUNCE ITS DEFINITIVE 1992 RESULTS IN APRIL MR WORMS SAID THAT DESPITE THE LOSSES THE GROUP INTENDED TO LEAVE ITS DIVIDEND UNCHANGED THE DECISION TO SET ASIDE A HEFTY FFR45 BILLION IN REAL ESTATE PROVISIONS REFLECTS SUEZ MANAGEMENT'S DESIRE TO REASSURE THE MARKET THAT IT HAS SET THE PROPERTY CRISIS BEHIND IT BY PROVIDING AMPLE COVER FOR ITS 324 BILLIONFRANC PROPERTY PORTFOLIO MR WORMS SAID THAT AT THE END OF 1992 HIS GROUP HAD COVERED 19 OF THE GROUP'S EXPOSURE TO REAL ESTATE ACKNOWLEDGING THAT SOME ANALYSTS WOULD EXPECT TO SEE HIGHER PROVISIONS AT ANYTHING UP TO 30 OF THE TOTAL PORTFOLIO MR WORMS ARGUED THAT HE WAS SATISFIED WITH CURRENT LEVELS WE'VE BEEN THROUGH THIS DOSSIER BY DOSSIER AND DONE WHAT WE THINK NEEDED TO BE DONE HE SAID STILL MOODY'S INVESTORS SERVICE INC PLACED SUEZ'S MAIN BANKING ARM BANQUE INDOSUEZ UNDER REVIEW FOR DOWNGRADING THE RATING AGENCY SAID THE REVIEW WILL FOCUS ON THE BANK'S DETERIORATING ASSET QUALITY AND WARNED THAT IT WAS ESPECIALLY WORRIED ABOUT THE BANK'S EXPOSURE TO THE PARIS REAL ESTATE SECTOR WHERE IT SAID MORE ASSET QUALITY PROBLEMS ARE LIKELY TO MATERIALIZE 9303040154 930304 IRS MAKES IT EASIER TO ASK FOR TAX INSTALLMENT PLAN WASHINGTON THE INTERNAL REVENUE SERVICE HAS MADE IT EASIER FOR PEOPLE TO WORK OUT INSTALLMENT PLANS IF THEY OWE MORE IN TAXES THAN THEY CAN AFFORD TO PAY THE IRS SAID PEOPLE IN THIS SITUATION CAN FILL OUT FORM 9465 AN INSTALLMENT AGREEMENT REQUEST AND ATTACH IT TO THE TOP OF THEIR TAX RETURNS THE IRS WILL DECIDE THE ISSUE WITHIN 30 DAYS IN THE PAST TAXPAYERS COULDN'T REQUEST PAYMENT AGREEMENTS UNTIL THEY HAD FILED THEIR RETURNS AND RECEIVED BILLS FROM THE IRS THE IRS CAUTIONED THAT MONTHLY PAYMENT PLANS MAY NOT BE THE BEST CHOICE FOR ALL TAXPAYERS NOTING THAT ALTERNATIVES SUCH AS BANK LOANS COULD BE LESS COSTLY PEOPLE WHO MAKE MONTHLY PAYMENTS TO THE IRS ARE STILL LIABLE FOR INTEREST AND A LATE PAYMENT PENALTY OF 05 A MONTH ON ANY UNPAID AMOUNTS WHEN THIS PENALTY IS ADDED TO THE CURRENT 7 INTEREST RATE TAXPAYERS EFFECTIVELY PAY AN ANNUAL RATE OF 13 ON THEIR UNPAID BALANCES THE IRS ALSO SAID IT WILL NO LONGER REQUIRE TAXPAYERS TO COMPLETE FINANCIAL STATEMENTS IF THEY HAVE UNPAID BALANCES OF LESS THAN 10000 IF THE IRS DOESN'T REQUIRE A FINANCIAL STATEMENT AND THE TAXPAYER ADHERES TO THE PAYMENT SCHEDULE THE IRS WON'T FILE A FEDERAL TAX LIEN MOREOVER ALL OFFICES WITHIN THE IRS NOW CAN APPROVE AGREEMENTS UP TO 10000 PREVIOUSLY ONLY THE COLLECTION DIVISION COULD WORK ON ACCOUNTS OF MORE THAN 5000 9303040153 930304 MRS FIELDS TO BE CLOSELY HELD PARK CITY UTAH MRS FIELDS INC SAID SHAREHOLDERS APPROVED ITS RECAPITALIZATION PLAN ANNOUNCED LAST WEEK AS A RESULT THE COMPANY WILL TAKE ITS SHARES OUT OF TRADING ON THE LONDON STOCK EXCHANGE AND BECOME A CLOSELY HELD FIRM THE PLAN INVOLVES A DEBTEQUITY SWAP IN WHICH FOUR LENDERS WILL RECEIVE A 79 INTEREST IN THE COOKIE COMPANY DEBBI FIELDS WHO FOUNDED THE COMPANY IN 1987 RETAINS OPTIONS TO REGAIN A CONTROLLING INTEREST THE COMPANY AND ITS LICENSEES PLAN TO OPEN 100 STORES DURING THE NEXT 12 MONTHS MRS FIELDS OPERATES 780 STORES OF WHICH 380 ARE FRANCHISED 9303040152 930304 TECHNOLOGY & HEALTH SCIENTISTS PINPOINT GENE THAT CAUSES INHERITED CASES OF LOU GEHRIG'S DISEASE BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON IN A DISCOVERY SUGGESTING THAT EXISTING DRUGS MAY HELP ALLEVIATE LOU GEHRIG'S DISEASE SCIENTISTS HAVE PINPOINTED A FAULTY GENE THAT CAUSES INHERITED CASES OF THE FATAL DISORDER AMYOTROPHIC LATERAL SCLEROSIS IS KNOWN AS THE DISEASE THAT KILLED BASEBALL STAR LOU GEHRIG AND AFFLICTS BRITISH PHYSICIST STEPHEN HAWKING ABOUT 25000 AMERICANS HAVE ALS WHICH USUALLY STRIKES AFTER AGE 40 IT CAUSES DEGENERATION OF NERVES THAT CARRY SIGNALS TO MUSCLES WHICH THEN WASTE AWAY ABOUT 10 OF CASES ARE INHERITED ALS TYPICALLY KILLS WITHIN FIVE YEARS MEDICAL RESEARCHERS ARE ESPECIALLY EXCITED BY THE LATEST FINDING BECAUSE UNLIKE MOST DISCOVERIES OF GENETIC DEFECTS UNDERLYING DISEASES IT POINTS AN ACCUSING FINGER AT A PREVIOUSLY DISCOVERED GENE WHOSE FUNCTIONS ARE WELLKNOWN THE DISCOVERY SUGGESTS THAT THE DISORDER RESULTS FROM MALFUNCTIONING SUPEROXIDE DISMUTASE OR SOD WHICH HELPS PREVENT DAMAGE FROM HARMFUL MOLECULES CALLED OXYGEN FREE RADICALS THAT INDICATES VITAMIN E OR OTHER ANTIOXIDANTS THAT DISARM FREE RADICALS MAY HELP TREAT ALS INCLUDING NONINHERITED CASES BUT WE WOULD LIKE TO CAUTION PEOPLE NOT TO SELFMEDICATE WITH ANTIOXIDANTS BASED ON THE STUDY SAID ROBERT H BROWN A MASSACHUSETTS GENERAL HOSPITAL RESEARCHER AND A MEMBER OF AN INTERNATIONAL TEAM THAT PINPOINTED THE FAULTY GENE ADDED TEEPU SIDDIQUE A NORTHWESTERN UNIVERSITY MEMBER OF THE TEAM I'VE GIVEN ANTIOXIDANTS TO ALS PATIENTS FOR YEARS AND HAVEN'T SEEN THEM DROP THEIR CANES OR GET BETTER STILL THE RESEARCHERS SAID WELLCONTROLLED STUDIES ON ANTIOXIDANTS FOR ALS MAY REVEAL EFFECTIVE WAYS TO USE THEM THAT HAVEN'T BEEN APPARENT WHEN ALS PATIENTS SPORADICALLY TAKE ANTIOXIDANTS FOR LACK OF ANYTHING BETTER THERE'S NO REASON NOT TO IMMEDIATELY TRY SUCH STUDIES SAID DR BROWN THE GENE STUDY REPORTED IN TODAY'S ISSUE OF THE JOURNAL NATURE INDICATES ABOUT HALF OF INHERITED ALS CASES STEM FROM DEFECTS IN ONE OF THREE KNOWN GENES THAT PRODUCE VARIANTS OF SOD THE RESEARCHERS SHOWED THAT VARIOUS MUTATIONS OF THE GENE ARE HIGHLY CORRELATED WITH CASES OF THE DISEASE IN 13 FAMILIES WITH THE INHERITED FORM OF ALS THE MUTATIONS MAY LOWER THE AMOUNT OF SOD IN MOTOR NEURONS EXPOSING THEM TO HARM FROM A KIND OF FREE RADICAL CALLED SUPEROXIDE THE RESEARCHERS SAID SUCH RADICALS ARE FORMED BY NORMAL METABOLIC PROCESSES SOD APPARENTLY WAS EVOLVED TO SWEEP THEM AWAY BEFORE THEY DO DAMAGE AN SOD SHORTAGE MAY CAUSE RADICAL DAMAGE TO SLOWLY ACCUMULATE IN CELLS MOTOR NEURONS MIGHT BE SELECTIVELY KILLED BY SUCH CUMULATIVE DAMAGE BECAUSE UNLIKE MOST CELLS THEY EXIST FOR MANY DECADES THUS INJECTING SOD MAY SLOW OR HALT THE PROGRESSION OF ALS SOD DISCOVERED IN THE 1960S HAS LONG SEEMED A DRUG IN SEARCH OF A DISEASE STUDIES IN THE 1980S FOR EXAMPLE SUGGESTED IT MIGHT PREVENT HEARTATTACK DAMAGE CAUSED BY SUPEROXIDE RADICALS BUT CLINICAL TRIALS OF SOD FOR THAT PURPOSE YIELDED DISAPPOINTING RESULTS AND WERE ABANDONED YESTERDAY A SPOKESMAN FOR BIOTECHNOLOGY GENERAL CORP A NEW YORK COMPANY HOLDING AN SOD PATENT SAID THE COMPANY ALREADY IS CONSIDERING TESTING THE DRUG FOR ALS HOWEVER RESEARCHERS CAUTIONED THAT INJECTING SOD MAY WORSEN ALS THAT IS THE MUTATIONS IN THE SOD GENE MAY INDUCE AN EXCESS RATHER THAN A SHORTAGE OF THE SUBSTANCE AND TOO MUCH SOD COULD HURT CELLS MORE THAN TOO LITTLE OF IT WHEN DESTROYING SUPEROXIDE RADICALS SOD CREATES A CHEMICAL CALLED HYDROGEN PEROXIDE UNDER CERTAIN CONDITIONS SUCH AS WHEN IRON ATOMS ARE PRESENT HYDROGEN PEROXIDE FORMS HIGHLY TOXIC HYDROXYL FREE RADICALS THUS DRUGS BLOCKING SOD'S ACTION MAY BE NECESSARY TO TREAT ALS NORTHWESTERN'S DR SIDDIQUE ADDED THAT LOWERING THE BODY'S IRON LEVELS BY DONATING BLOOD ALSO MIGHT HELP PREVENT DAMAGE FROM EXCESS SOD IN ANY CASE THE GENE FINDING SUGGESTS THAT FREERADICAL DAMAGE IS AT THE HEART OF ALS HENCE SOME SORT OF ANTIOXIDANT THERAPY MAY BE ABLE TO ARREST ITS PROGRESS INDEED RESEARCHERS ALREADY ARE TESTING VITAMIN E AS A THERAPY FOR PARKINSON'S DISEASE ANOTHER NEURODEGENERATIVE DISORDER IN WHICH FREE RADICALS ARE SUSPECTED TO BE MAJOR CULPRITS THE FINDING ALSO RAISES HOPES FOR EARLY DIAGNOSIS AND PREVENTION OF ALS FOR ABNORMALITIES IN THE BODY'S FREERADICAL CHEMISTRY MAY BE DETECTABLE LONG BEFORE SYMPTOMS OF THE DISEASE APPEAR RESEARCHERS SAID 9303040151 930304 JAPAN STEEL EXPORTS IN JANUARY TOKYO JAPAN'S STEEL EXPORTS IN JANUARY ROSE 39 FROM THE SAME MONTH A YEAR EARLIER TO 124 MILLION METRIC TONS THE JAPAN IRON AND STEEL FEDERATION REPORTED STEEL EXPORTS IN THE LATEST REPORTING MONTH FELL 34 FROM THE PREVIOUS MONTH FOLLOWING A SEASONAL PATTERN AS JAPANESE STEEL PLANTS ARE CLOSED IN EARLY JANUARY FOR THE NEW YEAR HOLIDAYS STEEL EXPORTS OFTEN FALL SHARPLY IN JANUARY FROM THE PRECEDING MONTHS JANUARY'S 39 YEARONYEAR RISE MEANWHILE CAME AFTER INCREASES OF 57 IN DECEMBER AND 64 IN NOVEMBER A FEDERATION SPOKESMAN SAID A SHARP INCREASE IN STEEL SHIPMENTS TO CHINA HELPED OFFSET A PLUNGE IN EXPORTS TO THE US IN JANUARY STEEL SHIPMENTS TO THE US PLUMMETED 44 FROM A YEAR EARLIER TO 114000 METRIC TONS HE SAID IN THE WAKE OF THE US COMMERCE DEPARTMENT'S PRELIMINARY RULING IN LATE JANUARY TO IMPOSE ANTIDUMPING DUTIES ON CERTAIN CARBON STEEL IMPORTS FROM 19 NATIONS INCLUDING JAPAN 9303040150 930304 KAWASAKI STEEL DIVIDEND FOR HALF TOKYO KAWASAKI STEEL CORP A MAJOR JAPANESE STEEL MAKER SAID IT IS CONSIDERING DRAWING RESERVES TO PAY ITS DIVIDEND FOR THE SECOND HALF OF THIS FISCAL YEAR WHICH ENDS MARCH 31 WITH DEMAND FOR STEEL SLACKENING THE COMPANY HAS PREDICTED THAT IT WILL JUST BREAK EVEN ON AN UNCONSOLIDATED BASIS FOR THIS FISCAL YEAR FOR THE SECOND HALF THE COMPANY WILL SHOW A LOSS ABOUT OFFSETTING THE NET PROFIT FOR THE FISCAL FIRST HALF OF 372 BILLION YEN 316 MILLION BUT THE COMPANY STILL LOOKS TO MAINTAIN ITS THREEYENASHARE DIVIDEND FOR THE SECOND HALF A COMPANY SPOKESWOMAN SAID LAST FISCAL YEAR THE NET INCOME WAS 2748 BILLION YEN THE NUMBER OF THE COMPANY'S SHARES OUTSTANDING NOW TOTAL ABOUT 325 BILLION SUGGESTING THAT THE DIVIDEND WOULD REQUIRE AT LEAST 975 BILLION YEN OF THE 140 BILLION YEN OF RESERVES THE SPOKESWOMAN SAID 9303040149 930304 WOLOHAN LUMBER FEBRUARY SALES SAGINAW MICH WOLOHAN LUMBER CO SAID SALES FOR ITS STORES OPEN ONE YEAR OR LONGER DROPPED 2 IN FEBRUARY FROM THE YEARAGO PERIOD WOLOHAN SAID SALES FOR ALL ITS STORES SLIPPED 1 IN FEBRUARY TO 192 MILLION FROM 194 MILLION A YEAR EARLIER FOR THE FIRST TWO MONTHS OF THE YEAR WOLOHAN SAID SALES FOR STORES OPEN ONE YEAR OR LONGER ROSE 5 IN THE SAME PERIOD SALES FOR ALL ITS STORES CLIMBED 6 TO 402 MILLION FROM 379 MILLION A YEAR EARLIER 9303040147 930304 PRUDENTIAL SECURITIES IS FINED BY AMEX FOUR ARE DISCIPLINED NEW YORK THE AMERICAN STOCK EXCHANGE FINED PRUDENTIAL SECURITIES INC 200000 AND DISCIPLINED FOUR EMPLOYEES FOR MISHANDLING CUSTOMER ACCOUNTS OR FAILING TO PROPERLY SUPERVISE EMPLOYEES IN THE COMPANY'S SAN DIEGO CALIF AND RICHMOND VA BRANCH OFFICES INDIVIDUALS DISCIPLINED INCLUDED DAVID UTTER SAN DIEGO WHO WAS FINED 20000 AND SUSPENDED ONE YEAR IN ANY SUPERVISORY CAPACITY RICHARD SUGARMAN HARTFORD CONN FINED 25000 AND ROBERT MODIANO OF CHULA VISTA CALIF AND GREGORY RIPPERGER OF ELCAJUN CALIF EACH BARRED 10 YEARS OF WHICH FIVE WERE DEEMED SERVED THE EXCHANGE SAID NEITHER PRUDENTIAL NOR THE INDIVIDUALS ADMITTED OR DENIED THE ALLEGATIONS THE MEN COULDN'T BE REACHED TO COMMENT A PRUDENTIAL SPOKESMAN SAID AT THE TIME WE UNCOVERED THIS ACTIVITY IN THE MID1980S WE WORKED WITH OUR CUSTOMERS TO SETTLE CLAIMS INDEPENDENT OF ANY ACTIONS BY THE AMEX A YEAR AGO AN ARBITRATION PANEL AWARDED ALMOST 2 MILLION TO A RETIRED COUPLE WHOSE ACCOUNT AT PRUDENTIAL WAS EXCESSIVELY TRADED MR UTTER THEN BRANCH MANAGER OF PRUDENTIAL'S SAN DIEGO OFFICE WAS ORDERED TO PAY ALMOST 100000 A SPOKESMAN FOR THE AMEX HOWEVER SAID THE EXCHANGE'S RECENT DISCIPLINARY ACTION AGAINST PRUDENTIAL AND THE FOUR MEN HAD NO CONNECTION WITH THAT CASE PRUDENTIAL SECURITIES IS A SUBSIDIARY OF PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ THE PRUDENTIAL SECURITIES PENALTY IS BELIEVED TO BE THE LARGEST EVER LEVIED BY THE AMEX AGAINST A WALL STREET BROKERAGE FIRM IT'S THE HEAVIEST MONETARY PENALTY WE'VE IMPOSED IN RECENT MEMORY AN AMEX SPOKESMAN SAID THE STIFF FINE SUGGESTS THAT THE AMEX WHICH HAS BEEN CRITICIZED IN THE PAST FOR RELATIVELY WEAK SELFREGULATION OF ITS MEMBERS MAY BE TOUGHENING ITS STANCE SOME ANALYSTS SAID IN A STUDY RELEASED LAST YEAR THE AMERICAN BAR ASSOCIATION SAID THE AMEX WAS THE LEASTACTIVE SELFREGULATORY ORGANIZATION IN 1991 WITH MANY FINES IMPOSED AGAINST MEMBER FIRMS REACHING ONLY ABOUT 5000 THE HIGHEST FINE LEVIED BY THE EXCHANGE IN 1991 WAS JUST 15000 THE STUDY SAID 9303040146 930304 HIGH COURT GIVES ACCOUNTANTS A SHIELD AGAINST CIVIL RACKETEERING LAWSUITS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT GAVE THE EMBATTLED ACCOUNTING PROFESSION A NEW SHIELD AGAINST CIVIL RACKETEERING LAWSUITS ACCOUNTANTS FOR FINANCIAL INSTITUTIONS THAT GO OUT OF BUSINESS HAVE COME UNDER HEAVY LEGAL FIRE FROM INVESTORS SEARCHING FOR VILLAINS WITH MONEY LEFT IN THEIR POCKETS BUT THE HIGH COURT SAID OUTSIDE PROFESSIONALS WHO DON'T HELP RUN CORRUPT BUSINESSES CAN'T BE SUED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT KNOWN AS RICO ACCOUNTANTS WERE RELIEVED IF NOT ECSTATIC THE 72 RULING IS A STEP IN THE RIGHT DIRECTION SAID KATHRYN OBERLY WHO WON THE CASE FOR ACCOUNTING FIRM ERNST & YOUNG BUT SHE ADDED IT DOESN'T MEAN THAT SUITS AGAINST AUDITORS ARE GONE THE DECISION DIDN'T PROVIDE PROTECTION AGAINST SUITS ALLEGING THAT PROFESSIONALS WERE NEGLIGENT NOR DID IT DISALLOW RACKETEERING LAWSUITS ALLEGING THAT PROFESSIONALS WERE DIRECTLY INVOLVED IN FRAUD ALTHOUGH THEY LOST INVESTOR ADVOCATES AND PROPONENTS OF AGGRESSIVE RACKETEERING SUITS SAID THE HIGH COURT'S RULING COULD HAVE BEEN MUCH WORSE THE BIG DANGER EXPLAINED ROBERT BLAKEY A NOTRE DAME LAW SCHOOL PROFESSOR WAS THAT THE JUSTICES WOULD SAY THAT RICO IS A KINGPIN' STATUTE APPLYING TO TOP MANAGEMENT ONLY THEY DIDN'T DO THAT IN FACT JUSTICE HARRY BLACKMUN WHO WROTE THE MAJORITY OPINION WENT OUT OF HIS WAY TO EXPLAIN THAT YESTERDAY'S RULING SHOULDN'T BE READ TOO BROADLY PROF BLAKEY WHO HELPED DRAFT THE FEDERAL ANTIRACKETEERING ACT PREDICTED THAT BECAUSE OF JUSTICE BLACKMUN'S RELIANCE ON COMPLICATED SEMANTIC DISTINCTIONS HIS OPINION WILL NOT SETTLE THINGS BUT REQUIRE MORE LITIGATION TO UNDERSTAND WHAT IT MEANS THE RULING'S MOST IMMEDIATE AND SIGNIFICANT IMPACT PROBABLY WILL COME IN PRETRIAL SETTLEMENT TALKS WHERE MOST CIVIL LITIGATION IS RESOLVED THE THREAT OF RICO CLAIMS HAS PROMPTED SOME WHITECOLLAR DEFENDANTS TO AGREE TO GENEROUS SETTLEMENTS BECAUSE THE LAW ALLOWS PLAINTIFFS TO COLLECT TRIPLE THEIR ACTUAL DAMAGES WITH THAT THREAT REMOVED ACCOUNTANTS LAWYERS AND OTHER PROFESSIONALS WILL GAIN IMPORTANT LEVERAGE OUTSIDE THE COURTROOM RICO HAS BEEN THE FOCUS OF INTENSE ATTACKS FROM BUSINESS INTERESTS THEY CONTEND THAT THE LAW WHICH WAS DESIGNED PRIMARILY TO GO AFTER ORGANIZED CRIME HAS BEEN MISUSED BY PLAINTIFFS' LAWYERS IN CIVIL CASES ON THE OTHER SIDE ADVOCATES FOR INVESTORS BLAME OUTSIDE AUDITORS AND LAWYERS FOR HELPING TURN SAVINGS AND LOAN ASSOCIATIONS AND OTHER FINANCIAL INSTITUTIONS INTO PRECISELY THE TYPE OF CROOKED ENTERPRISES THAT RICO SHOULD PUNISH THE LAW HAS BOTH CRIMINAL AND CIVIL COMPONENTS BUT YESTERDAY'S RULING WON'T AFFECT THE PROSECUTION OF CRIMINAL ACTIVITIES THE PART OF RICO AT ISSUE IN THE ERNST & YOUNG CASE MAKES IT UNLAWFUL FOR ANYONE EMPLOYED BY OR ASSOCIATED WITH AN INTERSTATE BUSINESS TO CONDUCT OR PARTICIPATE DIRECTLY OR INDIRECTLY IN THE CONDUCT OF THE BUSINESS THROUGH A PATTERN OF RACKETEERING ACTIVITY RACKETEERING ACTIVITY IS DEFINED AS COMMISSION OF TWO OR MORE INFRACTIONS SUCH AS SECURITIES AND WIRE FRAUD THE ACCOUNTING FIRM ARTHUR YOUNG & CO WHICH HAS BEEN ABSORBED BY ERNST & YOUNG GOT INTO TROUBLE FOR ITS AUDITING IN THE EARLY 1980S OF A FARMERS' COOPERATIVE IN VAN BUREN ARK BY SELLING UNINSURED NOTES THE COOP HAD EXPANDED FROM A SMALL OPERATION THAT BOUGHT FARMERS' CROPS AND SOLD SUPPLIES INTO A MULTIMILLIONDOLLAR BUSINESS THE COOP'S MANAGER JACK WHITE USED SOME OF THE PROCEEDS FOR HIS PERSONAL BUSINESS VENTURES HE POURED 4 MILLION OF THE COOP'S MONEY INTO A COMPANY THAT MADE GASOHOL A GASOLINEANDALCOHOL FUEL MIXTURE BUT WHEN IT STILL LOST MONEY HE TRANSFERRED OWNERSHIP OF THE OPERATION TO THE COOP IN EARLY 1981 MR WHITE WAS CONVICTED OF FEDERAL TAX FRAUD BASED ON ALLEGATIONS OF SELFDEALING UNRELATED TO THE GASOHOL PROJECT BEFORE HE WENT TO PRISON LATER THAT YEAR HE ARRANGED TO HAVE ARTHUR YOUNG HIRED AS THE COOP'S AUDITOR ACCORDING TO THE NOTE HOLDERS ARTHUR YOUNG OVERVALUED THE GASOHOL PROJECT AS PART OF A SCHEME TO PROTECT MR WHITE AND KEEP THE COOP AS A CLIENT ARTHUR YOUNG PREPARED ALLEGEDLY MISLEADING AUDIT REPORTS AND FINANCIAL STATEMENTS REPRESENTATIVES FROM THE FIRM ALSO MADE PRESENTATIONS AT COOP MEETINGS BUT FAILED TO TELL DIRECTORS OR INVESTORS HOW THEY CAME UP WITH THE VALUATION OF THE GASOHOL PLANT AFTER THE COOP FILED FOR BANKRUPTCYLAW PROTECTION IN 1984 FARMERS AND OTHER INVESTORS SUED ARTHUR YOUNG AMONG OTHERS ACCUSING THE ACCOUNTANTS OF HELPING TO CONCEAL THE LOOTING OF THE COOP BY MR WHITE A JURY IN FEDERAL COURT IN FORT SMITH ARK FOUND THAT ARTHUR YOUNG HAD COMMITTED SECURITIES FRAUD BUT THE TRIAL JUDGE EXCLUDED A CLAIM FOR TRIPLE DAMAGES UNDER RICO THE US COURT OF APPEALS FOR THE EIGHTH CIRCUIT IN ST LOUIS AFFIRMED THE VERDICT AND THE RICO EXCLUSION IT IS CLEAR THAT ARTHUR YOUNG COMMITTED A NUMBER OF REPREHENSIBLE ACTS THE APPEALS COURT SAID BUT THE EIGHTH CIRCUIT HAS INTERPRETED RICO TO MEAN THAT OUTSIDE PROFESSIONALS AREN'T COVERED UNLESS THEY PARTICIPATE IN THE MANAGEMENT OR OPERATION OF THE CORRUPT BUSINESS AT ISSUE ERNST & YOUNG'S ACTIVITIES DIDN'T MEET THE TEST THE APPEALS COURT SAID ONE OTHER FEDERAL APPEALS COURT HAS INTERPRETED RICO MORE NARROWLY TO COVER ONLY TOP MANAGEMENT IN SUCH LAWSUITS WHILE OTHER APPEALS COURTS HAVE READ THE LAW MORE BROADLY THAN THE EIGHTH CIRCUIT THE SUPREME COURT SAID THE EIGHTH CIRCUIT'S MIDDLE COURSE WAS THE RIGHT ONE AFTER PICKING APART DICTIONARY DEFINITIONS OF INDIVIDUAL WORDS IN THE DISPUTED PORTION OF RICO JUSTICE BLACKMUN CONCLUDED THAT TO BE LIABLE DEFENDANTS MUST PARTICIPATE IN THE DIRECTION OF THE BUSINESS HE DIDN'T DEFINE DIRECTION BUT SAID THE OPERATION OR MANAGEMENT' TEST EXPRESSES THIS REQUIREMENT IN A FORMULATION THAT IS EASY TO APPLY COMMENTS BY LAWMAKERS DURING DEBATE OVER THE ORIGINAL RICO LEGISLATION SUPPORT THIS NOTION JUSTICE BLACKMUN ADDED THE SUPREME COURT OVER THE PAST DOZEN YEARS HAS REJECTED PREVIOUS EFFORTS TO LIMIT RICO'S REACH TYPICALLY CITING A PROVISION IN THE LAW THAT INSTRUCTS COURTS TO INTERPRET IT LIBERALLY BUT JUSTICE BLACKMUN SAID THAT PROVISION APPLIES ONLY WHEN A PART OF RICO IS AMBIGUOUS WHICH WASN'T THE CASE HERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES JOHN PAUL STEVENS SANDRA DAY O'CONNOR ANTONIN SCALIA ANTHONY KENNEDY AND CLARENCE THOMAS JOINED ALL OR MOST OF THE MAJORITY OPINION IN DISSENT JUSTICE DAVID SOUTER SAID THAT WHAT STRUCK THE MAJORITY AS CLEAR LOOKS AT THE VERY LEAST HAZY TO ME HE ASSERTED THAT THE CONGRESSIONAL ADMONITION TO CONSTRUE RICO LIBERALLY SHOULD HAVE DECIDED THE CASE ALLOWING FOR BROADER LIABILITY FOR OUTSIDE PROFESSIONALS 9303040145 930304 MARKETING & MEDIA ADVERTISING TURNER BAGS CHECKOUT CHANNEL BUT RIVALS REMAIN UNDETERRED BY KEVIN GOLDMAN TURNER BROADCASTING'S DECISION TO CHECK OUT OF THE CHECKOUT CHANNEL ISN'T STOPPING OTHERS INCLUDING NBC FROM EXPERIMENTING WITH NEW PLACEBASED MEDIA VENTURES TURNER LAST MONTH ENDED ITS AGGRESSIVE 13MONTH EXPERIMENT IN DELIVERING ADVERTISERSUPPORTED PROGRAMMING TO SUPERMARKETS VIA SATELLITE BUT NOW ONSITE A COVENTURE BETWEEN GENERAL ELECTRIC'S NBC UNIT AND THE FLEMING COS A GROCERY WHOLESALER IS TREADING THE SAME TERRITORY WHERE TURNER PRIVATE NETWORKS FAILED LAST MONTH AND SUBSEQUENTLY TOOK A 16 MILLION PRETAX CHARGE TURNER JOINED OTHER VENTURES THAT HAVE BITTEN THE DUST SUCH AS HEALTH CLUB TELEVISION AND SALON NETWORK EVEN THE GRANDDADDY OF SUCH PLACEBASED MEDIA WHITTLE COMMUNICATIONS HAS HAD ITS SHARE OF TROUBLES WHITTLE HAS HAD TO SCALE BACK ITS SPECIAL REPORT FOR DOCTORS' OFFICES FROM SIX MAGAZINES TO ONE ITS INSCHOOL TV NEWS VENTURE CHANNEL ONE REMAINS THE SUBJECT OF CONTROVERSY THOUGH THERE ARE LINGERING DOUBTS ABOUT WHETHER WHITTLE AND OTHER PLACEBASED MEDIA PROVIDERS DELIVER THE AUDIENCES THEY PROMISE ADVERTISERS CONTINUE TO SEEK WAYS TO REACH PEOPLE WHO ARE OUT OF THE HOUSE SHOPPING EATING OR VISITING DOCTORS' OFFICES AND UNLIKE HOME TV VIEWERS SOME ADVERTISERS REASON MANY PEOPLE IN SUCH SITUATIONS ESPECIALLY DOCTORS' WAITING ROOMS AND LONG LINES ARE A CAPTIVE AUDIENCE IN ONSITE'S CASE ITS PARTNERS BELIEVE IT HAS A BETTER WAY TO WOO SUPERMARKET SHOPPERS THE CHECKOUT CHANNEL WAS PLACED AT THE CHECKOUT LINE AFTER SHOPPERS HAD SELECTED THEIR PURCHASES AND WERE WAITING TO PAY IT FEATURED PROGRAMMING FROM TURNER BROADCASTING'S CNN HEADLINE NEWS BY CONTRAST ONSITE SCATTERED ABOUT A DOZEN 27INCH COLOR TELEVISION SETS THROUGHOUT EACH OF THE 70 SUPERMARKETS IN ITS EXPERIMENT THUS AVOIDING THE CHECKOUT LINE ITS PROGRAMMING FEATURED SHOPPING TIPS INCLUDING HOW TO PROPERLY SELECT FRESH VEGETABLES UNLIKE THE CHECKOUT CHANNEL SAY ONSITE OFFICIALS THE PROGRAMMING IS VIDEO ONLY SHOPPERS AREN'T BOMBARDED BY AN AUDIO PITCH THE 20MINUTE REEL WHICH IS REPEATED CONTINUOUSLY CONSISTS OF 10 MINUTES OF SILENT COMMERCIALS SOME OF WHICH ARE SPECIALLY PRODUCED FOR ONSITE ADVERTISERS FOR THE ONSITE EXPERIMENT INCLUDE COCACOLA DEL MONTE QUAKER OATS AND NABISCO ONSITE OFFICIALS SAY THEY LEARNED FROM THE CHECKOUT CHANNEL THAT SHOPPERS DON'T WANT INTRUSIVE NOISE SUCH AS THE CHATTER FROM A TELEVISION SET THE STORE DIDN'T WANT THE AUDIO EITHER SAYS TOM ROGERS AN NBC EXECUTIVE VICE PRESIDENT IT WANTS ITS SHOPPERS TO HAVE A CALM EXPERIENCE THE MORE CALM THE LONGER THE CUSTOMER STAYS IN THE STORE AND THAT'S BETTER FOR BUSINESS ONSITE HAS AMBITIOUS PLANS FOR A COMPANY THAT ISN'T YET OUT OF THE STARTING GATE IT HOPES TO PLACE TELEVISION SETS IN FASTFOOD CHAINS DRUG STORES MASS MERCHANDISE CHAINS SUCH AS KMART AND CONVENIENCE STORES SUCH AS 7ELEVEN STORES NOT ALL LOCALES WILL FEATURE SILENT PROGRAMMING WHITTLE MEANWHILE HAS HIGH HOPES FOR ITS SPECIAL REPORT NETWORK A VIDEO PROGRAM DELIVERED TO OVER 32000 PHYSICIAN OFFICES NATIONWIDE THE PROGRAMMING FEATURES A ONEHOUR SHOW WITH JOAN LUNDEN COHOST OF ABC'S GOOD MORNING AMERICA INCLUDED ARE 12 MINUTES OF COMMERCIALS FOR SUCH PRODUCTS AS DIAL SOAP EVEREADY BATTERIES CHRYSLER VEHICLES AND COLGATE TOOTHPASTE THE PROGRAMMING ISN'T SOLD OUT HOWEVER CONCEDES TOM INGRAM CHAIRMAN OF SPECIAL REPORT NETWORK IDEALLY WHITTLE WOULD LIKE 16 MINUTES PER HOUR BUT SUCH CLIENTS AS FASTFOOD CHAINS AND GIANT SOFTDRINK MAKERS HAVE YET TO ADVERTISE WE'VE HAD BUMPS SINCE THE BEGINNING SAYS MR INGRAM BUT HE ADDS THE SALES FORCE HAS RECENTLY EXPANDED TO 12 FROM FOUR AND WHITTLE THINKS A DOCTOR'S OFFICE IS PRECISELY THE PLACE TO REACH BUSY PEOPLE THE COMPANY VISUALIZES ITS AUDIENCE AS MOTHERS WITH LITTLE TIME TO UNWIND THESE WOMEN SPEND AN AVERAGE OF 35 MINUTES IN THE WAITING ROOM OF THEIR PHYSICIANS SAYS MR INGRAM THEY'RE NOT FOCUSING ON ANYTHING AND THEY'RE RECEPTIVE TO THE MESSAGE ON THE SCREEN FURTHERMORE WHITTLE SAYS ITS RESEARCH SHOWS THAT THESE WOMEN GO SHOPPING AFTER THEY LEAVE THE DOCTOR SO THE COMPANY HOPES ANY COMMERCIAL WILL BE FRESH IN THEIR MINDS THE CONCEPT WORKS BECAUSE WHITTLE HAS CREATED A SITUATION WHERE IT IS LOGICAL TO ASSUME THAT PEOPLE WILL BE ATTENTIVE AND THAT A SPECIAL AUDIENCE IS BEING DELIVERED SAYS ERICA GRUEN SENIOR VICE PRESIDENT AND ASSOCIATE MEDIA DIRECTOR AT SAATCHI & SAATCHI BUT THE CONTINUED MAJOR DRAWBACK IN PLACEBASED MEDIA IS THE DIFFICULTY IN MEASURING THE AUDIENCE WHO STOPS AND WATCHES THIS STUFF NO ONE KNOWS SAYS PETE RIORDAN VICE PRESIDENT AND MANAGER OF OUTOFHOME AND NONTRADITIONAL MEDIA AT OMNICOM GROUP'S BBDO THERE IS NO DATA AVAILABLE TO QUANTIFY THE AUDIENCE LEVEL THAT'S ASKING ADVERTISERS TO PUT A LOT OF FAITH IN THIS MEDIUM INDEED ACCORDING TO MR RIORDAN ADVERTISERS TURNED AWAY FROM THE CHECKOUT CHANNEL BECAUSE IT WAS THOUGHT OF AS TOO EXPENSIVE CONSIDERING THEY COULD NEVER VERIFY HOW MANY VIEWERS WERE WATCHING FOR INSTANCE IT COST 260 PER MONTH PER STORE TO ADVERTISE IF THE ULTIMATE GOAL OF 7000 STORES HAD BEEN REACHED IT WOULD COST ADVERTISERS 18 MILLION MONTHLY MS GRUEN AT SAATCHI SAYS SHE EXPECTS TO CONTINUE TO RECEIVE OUTLANDISH PROPOSALS FOR PLACEBASED MEDIA THAT MAY SOUND GOOD IN THEORY BUT WOULD LIKELY FLOP IF EVER EXECUTED FOR EXAMPLE THERE WAS THE TIME WHEN SIX FLAGS THEME PARK IN NEW JERSEY APPROACHED MS GRUEN AND PROPOSED PLACING TELEVISION SETS ON THE LINES OF ITS MOST POPULAR RIDES THAT WOULD BE UNWISE SAYS MR RIORDAN PEOPLE ARE MAD ENOUGH TO MAKE THEM WATCH COMMERCIALS WOULD MAKE MATTERS WORSE 9303040144 930304 MORE WORKERS OPT TO RETIRE WITH GM OFFER FIRM WILL SAVE 1 BILLION A YEAR AS 16500 HOURLY WORKERS ACCEPT PLAN BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT IN A MAJOR BOOST FOR ITS COSTCUTTING DRIVE GENERAL MOTORS CORP SAID 16500 HOURLY WORKERS MORE THAN DOUBLE THE ORIGINAL ESTIMATE TOOK EARLY RETIREMENT IN AN OFFER THAT ENDED MONDAY THE RETIREMENTS WHICH WILL SAVE GM ABOUT 1 BILLION IN ANNUAL EMPLOYMENT COSTS ARE A BIG STEP TOWARD PUTTING THE WORLD'S LARGEST AUTO MAKER IN THE BLACK AGAIN ANALYSTS SAID DAVID HEALY OF SG WARBURG & CO ESTIMATED THAT GM WILL CUT ITS COSTS BY 4 BILLION THIS YEAR FROM 1992 ABOUT HALF OF THE SAVINGS WILL INVOLVE PERSONNEL COSTS MR HEALY SAID INVESTORS RESPONDED POSITIVELY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AFTERNOON GM STOCK WAS QUOTED AT 3850 UP 625 CENTS AT THE END OF 1992 GM HAD 288000 HOURLY WORKERS THE COMPANY HAS PROMISED TO REDUCE THAT NUMBER TO 250000 BY THE MID1990S THE MOST RECENT SPECIAL RETIREMENTS WILL NOW LEAVE GM WITH FEWER THAN 272000 WORKERS THE AGREEMENT IS ONE OF THE FIRST FRUITS OF GM'S CONCERTED EFFORT TO REBUILD ITS TATTERED RELATIONSHIP WITH THE UNITED AUTO WORKERS UNION SINCE JOHN F SMITH JR BECAME GM'S CHIEF EXECUTIVE OFFICER IN NOVEMBER STEPHEN P YOKICH WHO HEADS THE UAW'S GM DEPARTMENT HAS SAID FOR SOME TIME THAT HE WILL WORK WITH THE COMPANY TO REDUCE COSTS AS LONG AS GM RESPECTS ITS CONTRACT WITH THE UNION THIS RETIREMENT PROGRAM WHICH PROTECTS THE INCOME AND HEALTHCARE BENEFITS OF RETIRING UAW MEMBERS IS A GOOD EXAMPLE OF WHAT WE'VE BEEN TALKING ABOUT MR YOKICH SAID IN A STATEMENT GERALD A KNECHTEL GM'S TOP LABOR NEGOTIATOR SAID THE PROGRAM WAS A WIN FOR ALL INVOLVED BECAUSE IT BALANCED THE NEEDS AND INTERESTS OF OUR WORK FORCE WITH GM'S OVERALL GOAL OF LOWERING COST AND IMPROVING PRODUCTIVITY WHEN GM AND THE UAW ANNOUNCED THE RETIREMENT PROGRAM IN DECEMBER THEY SET ASIDE 450 MILLION IN JOINT TRAINING FUNDS TO COVER THE COSTS BECAUSE OF THE NUMBER OF WORKERS WHO OPTED FOR RETIREMENT THE COSTS WILL SLIGHTLY EXCEED THE 450 MILLION HOWEVER GM WON'T TAKE ANY SPECIAL CHARGE A COMPANY SPOKESMAN SAID THE RETIREMENT PROGRAM WAS AIMED AT WORKERS AGED 50 AND OLDER WITH AT LEAST 10 YEARS OF EMPLOYMENT AT GM THOSE WHO ACCEPTED WILL RECEIVE A PENSION AND FULL HEALTHCARE BENEFITS WITHOUT THE USUAL CAP ON OUTSIDE EARNINGS IMPOSED ON EARLY RETIREES FOR EXAMPLE A RETIREE CAN TAKE A JOB WITH ANOTHER COMPANY AND STILL RECEIVE HIS FULL PENSION FROM GM FURTHERMORE GM WILL ASSUME HEALTHCARE COSTS THAT ARE NOT COVERED BY THE RETIREE'S NEW EMPLOYER IN ADDITION TO REGULAR RETIREMENT BENEFITS GM ALSO HAD AN INCENTIVE PROGRAM FOR WORKERS AGED 62 AND OLDER THEY WERE OFFERED A VOUCHER FOR 10000 TOWARD THE PURCHASE OF A NEW GM CAR PLUS 3000 CASH IF THEY CHOOSE TO USE THE VOUCHER AT GM'S ASEMBLY PLANT IN ARLINGTON TEXAS 308 WORKERS OR NEARLY 10 OF THE WORK FORCE TOOK EARLY RETIREMENT THEY LIKED THE HECK OUT OF IT SAID MIKE SEILER SHOP CHAIRMAN FOR THE UAW LOCAL THAT REPRESENTS ARLINGTON ANOTHER 300 WORKERS OPTED FOR RETIREMENT IN GM'S ASSEMBLY PLANT IN LORDSTOWN OHIO THAT WAS ABOUT TWICE THE NUMBER EXPECTED BY LOCAL UNION OFFICIALS LORDSTOWN HAS MORE WORKERS WHO ARE INTERESTED IN RETIRING BUT WHO WON'T REACH THE AGE OF 50 FOR ANOTHER YEAR OR TWO UNION OFFICIALS THERE SAID IF GM DOES OFFER ANOTHER EARLY RETIREMENT PROGRAM IN TWO YEARS ANOTHER 300 WORKERS WILL PROBABLY RETIRE SAID BILL BOWERS PRESIDENT OF THE LORDSTOWN LOCAL GM WILL HAVE TO CONTINUE SHRINKING ITS WORK FORCE IF IT WANTS TO MATCH THE EFFICIENCY OF LEANER COMPETITORS INDUSTRY EXPERTS SAID WHILE THE COMPANY'S PUBLIC TARGET IS AN HOURLY WORK FORCE OF 250000 GM EXECUTIVES CONCEDE PRIVATELY THAT THE ULTIMATE TARGET MAY BE CLOSER TO 200000 THE AUTO MAKER'S COSTCUTTING EFFORTS APPEAR TO BE GAINING CREDIBILITY ON WALL STREET JOHN CASESA OF WERTHEIM SCHRODER & CO WHO PUT GM ON HIS RECOMMENDED LIST IN JANUARY FOR THE FIRST TIME EVER FORECAST THAT THE COMPANY WILL POST OPERATING EARNINGS OF 15 BILLION THIS YEAR A HUGE TURNAROUND FROM ITS 13 BILLION OPERATING LOSS IN 1992 AT SALOMON BROTHERS INC ANALYST JOHN V KIRNAN WHO ALSO HAS A BUY RECOMMENDATION ON GM CITED MANAGEMENT'S AGGRESSIVE RESTRUCTURING INITIATIVES 9303040143 930304 LAW LEGAL BEAT BENEFITS LAW HURTS SOME IT AIMED TO HELP BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL A 1974 LAW DESIGNED TO PROTECT EMPLOYEE BENEFITS HAS ACTUALLY MADE IT TOUGHER AND AT TIMES EVEN IMPOSSIBLE FOR SOME WORKERS TO COLLECT PENSIONS HEALTH INSURANCE AND OTHER BENEFITS COURTS ARE STILL STRUGGLING TO INTERPRET PARTS OF THE FEDERAL PENSIONS AND BENEFITS LAW BUT SOME LAWYERS FOR EMPLOYEES SAY THEIR CLIENTS ARE FALLING INTO LOOPHOLES IN THE LAW THAT RESULT IN THEIR NOT GETTING BENEFITS THEY WERE PROMISED BY THEIR EMPLOYERS WHEN THE LAW WAS ENACTED THE LATE SENATOR JACOB K JAVITS CALLED IT THE GREATEST DEVELOPMENT IN THE LIFE OF THE AMERICAN WORKER SINCE SOCIAL SECURITY THESE DAYS A GROWING NUMBER OF LAWYERS DISAGREE THE BOTTOM LINE IS THAT THE LAW JUST ISN'T EFFECTIVE IN PROTECTING PEOPLE SAYS WILLIAM K CARR AN ATTORNEY WHOSE DENVER FIRM SMITH & CARR REPRESENTS EMPLOYEES CONGRESS COULD NOT HAVE INTENDED THAT WE'D BE IN THE SITUATION WE ARE IN NOW OF COURSE SOME LAWYERS WHO REPRESENT COMPANIES IN DISPUTES OVER BENEFITS DISAGREE THEY ARGUE THAT IF EMPLOYERS WEREN'T PERMITTED UNDER THE LAW TO LIMIT OR REVOKE HEALTH BENEFITS THEY MIGHT NEVER OFFER THOSE BENEFITS IN THE FIRST PLACE AND THESE LAWYERS SAY THE LAW OFFERS WORKERS SOME PROTECTIONS THEY DIDN'T HAVE BEFORE NEVERTHELESS NUMEROUS COURT RULINGS ILLUSTRATE EMPLOYEES' DISAPPOINTMENTS IN THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 KNOWN AS ERISA SINCE ERISA BECAME LAW FOR INSTANCE ORAL PROMISES ABOUT CERTAIN HEALTH CARE BENEFITS DON'T COUNT EVEN IF THEY WERE REPEATEDLY MADE BY COMPANY EXECUTIVES BEFORE ERISA SPOKEN PROMISES COULD BE BINDING CONTRACTS THAT'S ONE REASON THAT A FEDERAL APPEALS COURT IN CINCINNATI DENIED INSURANCE LAST MONTH TO 25 RETIREES AND SPOUSES OF RETIRED WORKERS AT A SCOTT & FETZER CO UNIT THE PLAINTIFFS SAY HIGHRANKING EMPLOYEES OF THE UNIT NOW A PART OF UNIVERSAL COMPONENTS CORP ORLAND IND TOLD THEM THEY'D HAVE HEALTH INSURANCE FOR LIFE OR IN SOME CASES UNTIL THEY REMARRIED A FORMER PRESIDENT OF THE DIVISION EVEN TESTIFIED IN COURT THAT HE HAD MADE SUCH PROMISES WE WOULD HAVE BOUGHT SOME OTHER INSURANCE IF WE'D KNOWN SAID MILDRED WHEELER OF COLDWATER MICH A WIDOW OF A RETIREE MRS WHEELER 74 YEARS OLD SAID SHE AND HER HUSBAND LEONARD WERE TOLD AT LEAST THREE TIMES THAT SHE WOULD BE INSURED IF HE DIED AFTER YOU WORK IN A PLACE THAT AMOUNT OF YEARS AND THE UNDERSTANDING IS THAT YOU ARE TO HAVE A LIFETIME OF HEALTH INSURANCE WHAT ELSE WOULD YOU EXPECT ERISA ALSO OVERRIDES ALL STATE LAWS THAT MIGHT OTHERWISE GIVE EMPLOYEES SIZABLE BENEFITS AND IT EVEN TRUMPS SOME LAWS THAT DON'T RELATE TO BENEFITS AT ALL A FEDERAL APPEALS COURT IN NEW ORLEANS RECENTLY THREW OUT A WRONGFULDEATH CASE THAT WOULD HAVE BEEN PERMITTED UNDER STATE LAW THE CASE WAS THROWN OUT BECAUSE A FETUS DIED DURING A DISPUTE BETWEEN A PREGNANT WOMAN AND HER HEALTHINSURANCE CARRIER THE APPEALS COURT SAID THAT BECAUSE OF THE FIGHT OVER BENEFITS IT HAD TO BE GUIDED BY ERISA WHICH COURTS HAVE NOT INTERPRETED TO ALLOW SUCH WRONGFULDEATH SUITS ERISA ALLOWS EMPLOYERS TO SUDDENLY CUT OFF HEALTH AND INSURANCE BENEFITS THE US SUPREME COURT LAST YEAR DECLINED TO REVIEW A DECISION THAT ALLOWED A HOUSTON RECORD STORE TO DROP COVERAGE FOR AIDSRELATED TREATMENTS AFTER AN EMPLOYEE DEVELOPED AIDS THE STORE WAS SELFINSURED AND SAID IT COULDN'T AFFORD THE TREATMENTS THE EMPLOYEE DIED IN 1991 COURTS ARE ALSO SEVERELY RESTRICTING THE KINDS OF DAMAGES WORKERS CAN COLLECT LAST WEEK FOR INSTANCE THE FEDERAL APPEALS COURT IN CINCINNATI DENIED MONEY DAMAGES TO A WIDOW WHO SAYS SHE AND HER HUSBAND NEVER RECEIVED CRITICAL DOCUMENTS ABOUT HOW HIS PENSION PLAN WORKED THE COURT RULED THAT ERISA HAS NO PROVISION THAT WOULD ALLOW HER TO COLLECT MONEY PLAINTIFF LAWYERS AREN'T THE ONLY ONES COMPLAINING JUDGE H EMORY WIDENER JR OF THE FOURTH US CIRCUIT COURT OF APPEALS POINTED OUT ERISA'S PROBLEMS IN A DECISION LAST MONTH IN THE MAJORITY RULING A THREEJUDGE PANEL OF THE APPEALS COURT BASED IN RICHMOND VA SAID INSURER ERRORS DON'T HAVE TO BE CORRECTED AS LONG AS THE INSURER ACTED REASONABLY BASED ON WHAT IT KNEW THE DECISION ALLOWED ONE WIFE OF A DECEASED BIGAMIST TO KEEP A 3600 INSURANCE PAYMENT EVEN THOUGH ANOTHER WIFE HAD LEGAL CLAIMS TO THE MONEY JUDGE WIDENER WROTE IN A SEPARATE RULING THAT HE FOUND IT QUITE DISTURBING THAT HIS COURT SO FREQUENTLY HEARD CASES IN WHICH WORKERS WERE DENIED HEALTH BENEFITS BECAUSE OF PROVISIONS IN ERISA IN THE BIGAMY CASE JUDGE WIDENER ADDED THE INSURER DODGED LIABILITY THAT IT WOULD HAVE FACED BEFORE ERISA BUT LAWYERS FOR EMPLOYERS SAID THAT ERISA DESPITE SOME FLAWS IS MUCH BETTER THAN HAVING A CRAZY QUILT OF STATE LAWS I THINK IF YOU HAVE 50 STATES WITH DIFFERENT METHODS OF RECOVERY YOU'RE GOING TO BE LOOKING AT COMPLETE AND TOTAL CHAOS SAID STEVEN D BADERIAN AN ERISA SPECIALIST WITH THE NEW YORK LABORLAW FIRM JACKSON LEWIS SCHNITZLER & KRUPMAN MR BADERIAN ADDED THAT WORKERS WHO CAN'T WIN BACK THEIR BENEFITS UNDER ERISA CAN STILL TRY USING OTHER FEDERAL LAWS OTHER LAWYERS ARGUE THAT WORKERS ARE FAR BETTER OFF UNDER ERISA THAN THEY WERE TWO DECADES AGO PREVIOUSLY FOR INSTANCE EMPLOYEES WHO LOST THEIR JOBS FOR ANY REASON BEFORE TURNING 65 COULD LOSE THEIR PENSIONS AND A WORKER WHOSE PENSION FUND RAN OUT OF MONEY WAS OUT OF LUCK ERISA SET UP COVERAGE RULES AND ESTABLISHED NATIONAL PENSION INSURANCE THOSE KINDS OF THINGS DEFINITELY HELPED EMPLOYEES IN THE LONG RUN SAID LESYLLEE WHITE A STAFF ATTORNEY FOR THE PENSION RIGHTS CENTER A WASHINGTON LOBBYING GROUP FOR EMPLOYEES SHE ADDED HOWEVER THAT THE LAW HAS GLARING LOOPHOLES THAT HURT EMPLOYEES WHO WERE MISLED BY EMPLOYERS CHANGES MIGHT BE ON THE HORIZON SOME MEMBERS OF CONGRESS ARE DRAFTING LEGISLATION THAT WOULD ADDRESS THE GRIPES OF EMPLOYEES IN ADDITION COURTS INCLUDING THE FEDERAL APPEALS COURT IN CHICAGO HAVE BEGUN HELPING EMPLOYEES BY APPLYING SOME PRINCIPLES OF CONTRACT LAW TO ERISA CASES ANY SUCH CHANGES HOWEVER WOULD COME TOO LATE FOR MRS WHEELER THE WIDOW IN COLDWATER MICH MY INSURANCE ENDED TODAY SHE SAID MONDAY I DON'T HAVE AS BIG A PROBLEM AS SOME PEOPLE DO MY HEALTH IS PRETTY GOOD BUT YOU NEVER KNOW WHEN SOMETHING IS GOING TO HAPPEN A NEW YORK STATE APPEALS COURT RULED THAT DIRECTORSANDOFFICERS LIABILITY INSURANCE DOESN'T COVER THE COST OF A SETTLEMENT WITH SHAREHOLDERS ALLEGEDLY VICTIMIZED BY A CORPORATE RAIDER'S GREENMAIL TACTICS THE DECISION CAME IN A CASE ARISING FROM THE 1984 RAID BY SAUL STEINBERG AND HIS NEW YORKBASED RELIANCE GROUP HOLDINGS INC ON WALT DISNEY CO RELIANCE WAS SEEKING REIMBURSEMENT BY ITS INSURERS FOR THE 21 MILLION RELIANCE PAID IN 1989 TO SETTLE LAWSUITS FILED BY WALT DISNEY SHAREHOLDERS THE SHAREHOLDERS ALLEGED THAT RELIANCE HAD UNFAIRLY EXTRACTED FROM WALT DISNEY A PREMIUM OF MORE THAN 60 MILLION THE SOCALLED GREENMAIL IN RETURN FOR AGREEING TO GIVE UP A BID TO CONTROL THE ENTERTAINMENT CONCERN IN A UNANIMOUS RULING THE NEW YORK APPEALS COURT SAID THE SETTLEMENT PAYMENT CAN'T BE COVERED BY INSURANCE BECAUSE IT MERELY RETURNS MONEY THAT WAS WRONGFULLY EARNED THROUGH THE GREENMAIL THE COURT ALSO POINTED OUT THAT EVEN WITH THE SETTLEMENT RELIANCE MADE MONEY ON THE DISNEY DEAL AS A RESULT THE COURT SAID THERE WERE NO DAMAGES TO BE COVERED BY INSURANCE ATTORNEYS FOR RELIANCE'S INSURERS SAID THE RULING MARKED THE FIRST TIME THAT AN APPELLATE COURT HAD CONSIDERED THE ISSUE THE DECISION REFLECTS THE JUDICIAL VIEW THAT UNJUSTLY EARNED PROFITS SHOULDN'T BENEFIT FROM INSURANCE COVERAGE SAID KENNETH A SAGAT AN ATTORNEY AT NEW YORK'S D'AMATO & LYNCH WHICH REPRESENTED NATIONAL UNION FIRE INSURANCE CO THE UNIT OF AMERICAN INTERNATIONAL GROUP WAS THE PRIMARY D&O INSURER FOR RELIANCE A SPOKESMAN FOR RELIANCE SAID THE COMPANY OBJECTED TO THE COURT'S FINDING THAT ITS PROFITS IN THE WALT DISNEY DEAL WERE WRONGFULLY ACQUIRED AND PLANNED AN APPEAL WE BELIEVE THAT THE COURT'S SUGGESTION THAT A VOLUNTARY SETTLEMENT IS EQUIVALENT TO A DETERMINATION OF WRONGDOING IS NOT SUPPORTABLE AND WE TRUST THAT THE ISSUE WILL BE RESOLVED BY THE STATE'S HIGHEST COURT THE SPOKESMAN SAID USX CORP SAID IT AGREED TO PAY 23 MILLION TO SETTLE AN 11YEAROLD LAWSUIT OVER ITS 1981 ACQUISITION OF MARATHON OIL CO THE SUIT ALLEGED THAT USX THEN KNOWN AS US STEEL TREATED SOME MARATHON SHAREHOLDERS UNFAIRLY IN ITS TENDER OFFER FOR MARATHON PITTSBURGHBASED US STEEL OFFERED 125 A SHARE FOR THE FIRST 30 MILLION SHARES THAT WERE TENDERED GIVING IT MAJORITY CONTROL OF MARATHON UNDER THE TENDER OFFER THE COMPANY THEN EXCHANGED SECURITIES VALUED AT 75 FOR EACH OF THE REMAINING 28 MILLION MARATHON SHARES BECAUSE MORE THAN 30 MILLION MARATHON SHARES WERE TENDERED UNDER THE FIRST PART OF THE OFFER US STEEL PRORATED THAT PURCHASE PRICE EVENLY AMONG THE 54 MILLION SHARES IT SAID HAD BEEN TENDERED PROPERLY THE LAWSUIT AROSE AFTER SOME FORMER MARATHON HOLDERS ALLEGED THAT THE VALUE OF THEIR STOCK WAS DILUTED BY MORE THAN 200 MILLION BECAUSE USX IMPROPERLY INCLUDED ABOUT EIGHT MILLION SHARES IN THE TOTAL THAT WAS PRORATED THE 6 BILLION TAKEOVER OF MARATHON WAS ONE OF THE LARGEST TAKEOVERS AT THAT TIME THE ISSUES RAISED IN THE LAWSUIT HOWEVER ABOUT THE PROPER WAY FOR SHARES TO BE TENDERED DURING A TAKEOVER HAVE LONG BECOME OUTDATED BECAUSE OF CHANGES IN SECURITIES REGULATIONS THE SETTLEMENT WAS ANNOUNCED THE DAY THE CASE WAS SCHEDULED TO GO TO TRIAL IN FEDERAL COURT IN NEW YORK A US MAGISTRATE JUDGE IN 1991 HAD RECOMMENDED A RULING IN FAVOR OF THE PLAINTIFFS BUT LAST YEAR A US DISTRICT JUDGE DECIDED NOT TO ACCEPT THE MAGISTRATE'S RECOMMENDATION AND ORDERED THE CASE TO GO TO TRIAL USX SAID THE 23 MILLION SETTLEMENT WHICH IS SUBJECT TO COURT APPROVAL ISN'T EXPECTED TO HAVE A SIGNIFICANT IMPACT ON THE FIRSTQUARTER INCOME OF EITHER THE MARATHON GROUP OR USX DALE SCHREIBER AN ATTORNEY FOR THE PLAINTIFFS AT THE LAW FIRM PROSKAUER ROSE GOETZ & MENDELSOHN DECLINED TO COMMENT JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9303040142 930304 WHO'S NEWS HOUGHTON MIFFLIN CO HOUGHTON MIFFLIN CO BOSTON JOHN E TYLER 52 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENTCHIEF TECHNOLOGY OFFICER OF THE PUBLISHING CONCERN MR TYLER HAD BEEN VICE PRESIDENT OF INFORMATION TECHNOLOGY FOR THE SEATTLE TIMES NEWSPAPER 9303040141 930304 INTERNATIONAL MAZDA AND FORD DROP PROPOSAL TO BUILD CARS TOGETHER IN EUROPE BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO MAZDA MOTOR CORP IN ANOTHER CUTBACK OF ITS MAJOR EXPANSION PROGRAM SAID IT AND FORD MOTOR CO SCRAPPED PLANS TO BUILD CARS TOGETHER IN EUROPE FORD HAD SEEMED LUKEWARM TOWARD THE IDEA OF A EUROPEAN JOINT VENTURE WITH MAZDA FOR SOME TIME MAZDA IS 25OWNED BY FORD IN JANUARY FORD OFFICIALS SAID THE TWO COMPANIES WEREN'T NEAR AN AGREEMENT ON EUROPEAN PRODUCTION BY HELPING MAZDA ANALYSTS NOTED FORD RISKED BUILDING CARS THAT WOULD COMPETE WITH ITS OWN MODELS IN THE SLUMPING EUROPEAN COMMUNITY MARKET YESTERDAY A FORD SPOKESWOMAN IN DEARBORN MICH SAID WE WERE STUDYING WHETHER OR NOT THERE WAS A MUTUALLY BENEFICIAL CAR PROJECT FORD OF EUROPE AND MAZDA MIGHT DO IN EUROPE WE DISCONTINUED THE STUDY WE WERE NOT ABLE TO IDENTIFY THE PROJECT AND ELEMENTS THAT WOULD BE MUTUALLY BENEFICIAL THERE WERE SEVERAL THINGS IMPACTING THAT DECISION ONE WAS THE DETERIORATING ECONOMIC CLIMATE IN EUROPE AUTO ANALYSTS SAID THE MOVE WILL HELP MAZDA HOLD DOWN EXPENSES IN THE SHORT TERM BUT IN THE LONG TERM IT COULD LEAVE MAZDA SERIOUSLY WEAKENED IN THE HUGE EUROPEAN AUTO MARKET PRODUCING CARS LOCALLY IS BECOMING CRUCIAL TO THE SUCCESS OF JAPANESE AUTO MAKERS' EUROPEAN OPERATIONS BECAUSE OF TIGHTENING EC RESTRICTIONS ON IMPORTED CARS ONLY A TINY PROPORTION OF THE JAPANESE CARS SOLD IN EUROPE ARE MADE IN EUROPE SAID JONATHAN DOBSON ANALYST AT JARDINE FLEMING SECURITIES LTD AS EC QUOTAS ARE LOWERED THOSE JAPANESE CAR MAKERS WITHOUT LOCAL PRODUCTION WILL BE HURT MAZDA DOESN'T BUILD AUTOS IN EUROPE TOYOTA MOTOR CORP NISSAN MOTOR CO AND HONDA MOTOR CO ALL HAVE PLANTS IN EUROPE JAPAN'S MAJOR CAR MAKERS HAVE BEEN THRASHED BY A TWOYEAR SLUMP IN DOMESTIC SALES NISSAN LAST WEEK SAID IT WOULD HAVE A BIGGER DEFICIT THIS FISCAL YEAR THAN IT HAD PREVIOUSLY EXPECTED NISSAN ALSO ANNOUNCED PLANS TO CLOSE A DOMESTIC ASSEMBLY PLANT THE FIRST MAJOR FACTORY CLOSING EVER BY A JAPANESE CAR MAKER AND YESTERDAY NISSAN SAID IT WOULD STOP HIRING FULLTIME PRODUCTION WORKERS OUTSIDE THE CONVENTIONAL RECRUITING PERIOD FOR THE NEXT TWO YEARS TOYOTA ALREADY HAS SUSPENDED OFFSEASON HIRING MAZDA ALSO HAS TAKEN ITS SHARE OF LUMPS THE COMPANY'S DOMESTIC SALES HAVE BEEN FALLING FASTER THAN MOST OF ITS JAPANESE RIVALS DROPPING 135 IN FEBRUARY COMPARED WITH A DECLINE OF 79 FOR THE JAPANESE CAR MARKET AS A WHOLE THE SALES BLOW COMES AT A BAD TIME FOR MAZDA THE HIROSHIMABASED MANUFACTURER HAS JUST COMPLETED A COSTLY EXPANSION OF ITS CAR LINEUP FACTORY CAPACITY AND SALES NETWORK IN JAPAN IN AN ATTEMPT TO TURN ITSELF INTO A FULLLINE AUTO MAKER AND JOIN THE FRONT RANKS OF WORLD INDUSTRY NOW THE COMPANY IS BEING FORCED TO SLASH SPENDING IN RECENT MONTHS IT ABANDONED A PLAN TO OPEN A LUXURYCAR DIVISION IN THE US AND SOLD TO FORD AN EQUITY STAKE IN A MICHIGAN ASSEMBLY PLANT LIKE OTHER JAPANESE CAR MAKERS MAZDA PLANS TO REDUCE THE NUMBER OF DIFFERENT PARTS IT USES IN ITS CARS IN THE YEAR ENDING MARCH 31 THE COMPANY FORECASTS AN UNCONSOLIDATED PRETAX PROFIT OF SEVEN BILLION YEN 594 MILLION DOWN 64 MAZDA HAS TO FIND SOME OTHER REMEDY THAN CUTTING COSTS SAID MR DOBSON THAT HAS TO BE IN THE WAY THEY SELL CARS AND IN WHAT THEY SELL A MAZDA SPOKESMAN SAID THE COMPANY WILL CONTINUE LOOKING FOR OTHER EUROPEAN PARTNERS BUT ADDED WE AREN'T IN A HURRY JAPANESE MEDIA REPORTS SAID MAZDA AND FORD HAD TALKED ABOUT MAKING MORE THAN 100000 CARS A YEAR 9303040140 930304 SINGAPORE TAPS GOLDMAN TO LEAD GLOBAL OFFERING SINGAPORE GOLDMAN SACHS INTERNATIONAL LTD WON THE RIGHT TO COORDINATE AN INTERNATIONAL OFFERING OF SHARES IN SINGAPORE'S HUGELY PROFITABLE STATEOWNED TELEPHONE MONOPOLY THE SINGAPORE GOVERNMENT SAID IT APPOINTED GOLDMAN SACHS GLOBAL COORDINATOR OF THE INTERNATIONAL PORTION OF SINGAPORE TELECOMMUNICATIONS PTE LTD'S INITIAL PUBLIC OFFERING THE GOVERNMENT NAMED A GROUP OF SIX LOCAL BANKS HEADED BY DEVELOPMENT BANK OF SINGAPORE LTD AS THE LEAD MANAGER OF THE DOMESTIC PORTION OF THE OFFERING GOLDMAN BEAT OUT MORE THAN 20 COMPETITORS TO LAND THE PLUM ASSIGNMENT THE SHARE ISSUE WHICH IS EXPECTED SOMETIME IN SEPTEMBER OR OCTOBER WILL LIKELY MAKE SINGAPORE TELECOM THE LARGEST COMPANY ON THAT COUNTRY'S STOCK EXCHANGE WITH A MARKET CAPITALIZATION OF ABOUT 165 BILLION SINGAPORE DOLLARS US1005 BILLION ABOUT 15 OF THE COMPANY WITH AN ESTIMATED VALUE OF S25 BILLION IS EXPECTED TO BE SOLD BY TENDER TO FOREIGN AND DOMESTIC INVESTORS IN ADDITION TO ABOUT 10 RESERVED FOR SINGAPOREANS IN A FIXEDPRICE DOMESTIC OFFERING THE GOVERNMENT WHICH NOW OWNS THE COMPANY OUTRIGHT WILL KEEP THE REST OF THE SHARES 9303040139 930304 BANK OF NEW YORK EXPANDS LINE OF LOWINTEREST CARDS NEW YORK COMPETITION IN THE CREDIT CARD BUSINESS CONTINUED TO INTENSIFY YESTERDAY AS BANK OF NEW YORK CO ANNOUNCED IT WAS EXPANDING ITS LINE OF LOW INTERESTRATE CREDIT CARDS THE MOVE FOLLOWED TUESDAY'S ANNOUNCEMENT BY GE CAPITAL CORP THAT IT WAS DROPPING THE ANNUAL FEE ON ITS GE REWARDS CREDIT CARDS AND RESTRUCTURING ITS PRICING TO OFFER A LOWER INTEREST RATE OPTION THE FINANCE SUBSIDIARY OF GENERAL ELECTRIC CO ALSO SAID IT WILL BEGIN OFFERING COUPONS WORTH UP TO 1000 OFF ON THE PURCHASE OF A VOLVO AUTOMOBILE THE LATEST LINE OF CREDIT CARDS FOR BANK OF NEW YORK FOLLOWS ITS RECENT SUCCESS IN MARKETING ITS CONSUMERS EDGE CREDIT CARD NATIONALLY THE CARD OFFERS ONE OF THE LOWEST INTEREST RATES OF 119 AND NO ANNUAL FEE THE INDUSTRY AVERAGE IS ABOUT 175 WITH AN ANNUAL FEE OF ABOUT 25 THE NEW LINE OF CARDS INCLUDE CONSUMERS EDGE25 WHICH PROVIDES A GRACE PERIOD UNDER WHICH PURCHASES DON'T INCUR FINANCE CHARGES UNTIL AFTER 25 DAYS AND CONSUMERS EDGE GOLD CARD WHICH OFFERS A HIGHER CREDIT LINE BOTH HAVE HIGHER INTEREST RATES HOWEVER OF 149 AND 129 RESPECTIVELY 9303040138 930304 INTERNATIONAL BRIEF COURTAULDS TEXTILES PLC PRETAX EARNINGS SURGE 89 ON ACCOUNTINGRULE CHANGE COURTAULDS TEXTILES PLC OF BRITAIN ONE OF EUROPE'S LARGEST FABRIC AND CLOTHING MAKERS SAID THAT PRETAX PROFIT JUMPED 89 IN 2 1992 BUT THAT'S BECAUSE 1991 RESULTS WERE RESTATED LOWER IN ACCORDANCE WITH NEW ACCOUNTING RULES ON A COMPARABLE BASIS PROFIT FELL SLIGHTLY PRETAX PROFIT ROSE TO 391 MILLION 566 MILLION FROM 207 MILLION SALES DROPPED 35 TO 8896 MILLION FROM 922 MILLION BUT THE DIVIDEND WAS RAISED 46 TO 136 PENCE 197 CENTS FROM 13 PENCE COURTAULDS SAID PROFIT FROM ITS UK BUSINESS WAS SHARPLY HIGHER BECAUSE OF TOUGH COSTCONTROL MEASURES AND A REALIGNMENT OF CAPACITY THE COMPANY SAID HOWEVER THAT THE GAINS WERE OFFSET BY A SHARP DOWNTURN IN THE US LACE BUSINESS AND WORSENING MARKET CONDITIONS IN FRANCE AND GERMANY STILL MARTIN TAYLOR CHIEF EXECUTIVE OFFICER SAID FUTURE PROSPECTS LOOK BRIGHT 9303040137 930304 TAXABLE MONEYFUND YIELDS ROSE SLIGHTLY IN THE LATEST WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS MOVED UP FRACTIONALLY IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE MONEY FUNDS ROSE TO 274 FROM 273 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS INSTITUTIONAL INVESTORS MEANWHILE WITHDREW BILLIONS OF DOLLARS ASSETS OF ALL TAXABLE FUNDS TRACKED BY THE NEWSLETTER FELL BY 1731 BILLION TO 4768 BILLION INSTITUTIONAL INVESTORS ACCOUNTED FOR 1546 BILLION OF THE LATEST OUTFLOW ACCORDING TO MONEY FUND REPORT WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MOST OF THE CASH PROBABLY WENT INTO THE STOCK MARKET WITH THE REMAINDER GOING INTO BONDS THE WITHDRAWALS FOLLOWED A 1635 BILLION INCREASE IN TAXABLEFUND ASSETS A WEEK EARLIER INCLUDING 919 BILLION THAT WENT INTO FUNDS OPEN ONLY TO INSTITUTIONS THERE ARE NOW 560 TAXABLE FUNDS LISTED IN MONEY FUND REPORT COMPARED WITH 567 A WEEK EARLIER DUE TO FUND MERGERS SOME OF THE 185 BILLION DECLINE IN RETAILFUND ASSETS RESULTED FROM MERGERS WITH FUNDS THAT DON'T REPORT TO THE NEWSLETTER SAID MR FRANK AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS THAT'S FAIRLY LONG BY MONEY FUND STANDARDS AND A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM INTEREST RATES AND THUS FUND YIELDS TO RISE SHARPLY ANY TIME SOON WE'RE AT AN EQUILIBRIUM WITH RANDOM SMALL SHIFTS IN YIELDS FROM WEEK TO WEEK SAID MR FRANK THERE'S ZERO TREND HERE THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EDGED UP TO 271 FROM 269 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 272 AND THE AVERAGE 30DAY COMPOUND YIELD SLIPPED TO 275 FROM 276 DUE TO ROUNDING YIELDS ON TAXFREE MONEY FUNDS SLIPPED MORE MONEY FUND REPORT SAID THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE FELL TO 184 FROM 190 IN THE LATEST WEEK THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 256 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 267 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 307 TAXEXEMPT FUNDS FELL BY 106 BILLION TO 10147 BILLION AVERAGE MATURITY LENGTHENED BY FOUR DAYS TO 55 DAYS 9303040136 930304 WHO'S NEWS UNISYS CORP UNISYS CORP BLUE BELL PA THIS COMPUTER COMPANY NAMED ARTHUR SLOTKIN VICE PRESIDENT WORLDWIDE OUTSOURCING MR SLOTKIN 46 YEARS OLD WILL CONTINUE IN HIS POSITION AS VICE PRESIDENT AND GENERAL MANAGER SYSTEMS SUPPORT OPERATIONS UNISYS GOVERNMENT SYSTEMS INC 9303040134 930304 CORPORATIONS CONTRIBUTE 403 MILLION FOR HOUSING WASHINGTON TWO LEADING COMMUNITYDEVELOPMENT ORGANIZATIONS ANNOUNCED THAT PRIVATE CORPORATIONS LAST YEAR INVESTED 403 MILLION IN THEIR EFFORTS TO PROMOTE AFFORDABLE HOUSING AND COMMUNITYRENEWAL ACROSS THE COUNTRY THE FUNDS WILL BE SPENT WITHIN THE NEXT 18 MONTHS ACCORDING TO THE NEW YORK CITYBASED LOCAL INITIATIVES SUPPORT CORP ONE OF THE NONPROFIT GROUPS INVOLVED THE OTHER IS THE ENTERPRISE FOUNDATION BASED IN COLUMBIA MD A SPOKESWOMAN FOR LISC SAID THE 403 MILLION WILL RESULT IN THE PRODUCTION OF 10000 NEW RENTAL UNITS ACROSS THE COUNTRY THE TWO GROUPS ALSO URGED CONGRESS TO EXTEND PERMANENTLY THE TAX CREDIT FOR LOWINCOME HOUSING THAT EXPIRED LAST JUNE WITHOUT IT THEY SAID THERE WILL BE A DROP IN MONEY AVAILABLE TO INVEST IN AFFORDABLEHOUSING INITIATIVES NEXT YEAR FAILURE TO REINSTATE THE TAX CREDIT SOON COULD LEAD A CRIPPLING BLOW TO THE CORPORATECOMMUNITY PARTNERSHIPS AND THE PROMISE THEY HOLD FOR RENEWING THE CITIES OF AMERICA SAID F BARTON HARVEY COCHAIRMAN OF THE ENTERPRISE FOUNDATION PRESIDENT CLINTON HAS ENDORSED EXTENDING THE CREDIT 9303040133 930304 BUSINESS BRIEF THERMO ELECTRON CORP THERMOTREX UNIT TO SELL STOCK IN SUBSIDIARY TO GROUP THERMOTREX CORP SAN DIEGO SAID IT RECEIVED COMMITMENTS FOR THE SALE OF 19 OF ITS THERMOLASE INC UNIT'S COMMON STOCK OUTSTANDING TO AN INVESTOR GROUP IN A PRIVATE PLACEMENT THE MAKER OF ELECTROOPTIC AND ACOUSTIC SYSTEMS SAID ESTIMATED GROSS PROCEEDS TO THERMOLASE INC FROM THE OFFERING WILL BE 153 MILLION THE COMPANY ALSO SAID INVESTORS IN THE PRIVATE PLACEMENT WILL RECEIVE REDEMPTION RIGHTS ENTITLING THEM TO SELL THEIR SHARES BACK TO THERMOLASE IN DECEMBER 1996 AND 1997 AT THE PRIVATE PLACEMENT PRICE THERMOTREX SAID THERMOLASE'S OBLIGATIONS UNDER THE REDEMPTION RIGHTS WILL BE GUARANTEED BY THERMO ELECTRON CORP THERMOTREX'S PARENT ON A SUBORDINATED BASIS AFTER THE OFFERING THERMOTREX WILL OWN ABOUT 81 OF THERMOLASE'S COMMON STOCK THE COMPANY ADDED THERMO ELECTRON IS BASED IN WALTHAM MASS 9303040132 930304 YOUR MONEY MATTERS INVESTMENT DARTBOARD THE PROS GET TROUNCED IN STOCK CONTEST BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL ALL FOUR PROFESSIONAL INVESTORS STRUCK OUT IN THE LATEST INVESTMENT DARTBOARD STOCKPICKING CONTEST BY ANY MEASURE IT WAS A CRUSHING DEFEAT YET THE DOW JONES INDUSTRIAL AVERAGE ROSE 25 IN THE SAME PERIOD AND A RANDOM DARTBOARD PORTFOLIO CHOSEN BY REPORTERS TOSSING DARTS AT THE STOCK LISTINGS GAINED A FRISKY 156 BUOYED BY A LUCKY DART THAT HIT CASINO OPERATOR SHOWBOAT INC UP 484 ALL IN ALL IT WAS THE WORST SHOWING BY INVESTMENT PROFESSIONALS SINCE THE INVESTMENT DARTBOARD CONTEST BEGAN IN 1988 THE PROS TRAILED THE DARTS BY AN ASTONISHING MARGIN OF 423 PERCENTAGE POINTS THE PROS NOW HOLD A NARROW 1815 LEAD OVER THE DARTS IN A SERIES OF OVERLAPPING SIXMONTH CONTESTS THE AVERAGE PROFESSIONAL SELECTION SINCE MID1990 HAS PRODUCED A SIXMONTH PRICE GAIN OF 83 A PRAISEWORTHY SHOWING THE DARTS' AVERAGE SIXMONTH GAIN WAS 52 AND THE AVERAGE SIXMONTH GAIN FOR THE DOW JONES INDUSTRIAL AVERAGE WAS ONLY 38 IN THE LATEST CONTEST THE BEST SHOWING AMONG THE PROS WAS TURNED IN BY TED PRICE PRESIDENT OF MENTOR GROWTH TRUST IN RICHMOND VA HIS PICK WESTERN PUBLISHING GROUP INC PRODUCER OF GOLDEN BOOKS FELL ONLY 07 THAT PYRRHIC VICTORY ENTITLES MR PRICE TO ANOTHER TRY THIS TIME HE RECOMMENDS CHROMCRAFT REVINGTON INC A DELPHI IND FURNITURE MAKER THAT LATELY HAS BEEN SURPRISING WALL STREET WITH EARNINGS THAT EXCEED PREVAILING EXPECTATIONS MR PRICE THINKS THE COMPANY WILL SHOW CONTINUED IMPROVEMENT IN PROFITS AS THE MANAGEMENT FROM ITS PETERSREVINGTON UNIT SHAPES UP ITS LARGER BUT LESS PROFITABLE CHROMCRAFT UNIT PETERSREVINGTON SPECIALIZES IN ALLWOOD ITEMS SUCH AS BOOKCASES AND CURIO CASES CHROMCRAFT IS BIG IN DININGROOM SETS AND INSTITUTIONAL SEATING SUCH AS THAT FOUND IN AIRLINE TERMINALS THE FURNITURE INDUSTRY HAS BEEN IN A SLUMP FOR HALF A DOZEN YEARS MR PRICE SAYS IT'S OUR HUNCH THAT THE RECOVERY WHICH HAS JUST BEGUN WILL PROBABLY CARRY FOR TWO OR THREE YEARS RUNNERUP IN THE LATEST CONTEST WITH A LOSS OF 139 IN MICRO HEALTHSYSTEMS INC WAS JONATHAN STEINBERG CHIEF EXECUTIVE OFFICER OF FINANCIAL DATA SYSTEMS INC THE PUBLISHER OF INDIVIDUAL INVESTOR MAGAZINE MR STEINBERG'S NEW CHOICE IS ARRESTING IT IS BI INC A LITTLE COMPANY IN BOULDER COLO THAT MAKES ELECTRONIC ANKLE BRACELETS USED TO TRACK PEOPLE WHO ARE UNDER HOUSE ARREST THIS IS PERFECT FOR THE NONVIOLENT CRIMINAL SAYS MR STEINBERG IT COSTS 75000 PER INMATE TO BUILD A PRISON AND 60 A DAY TO HOUSE EACH INMATE MR STEINBERG SAYS WITH ELECTRONIC HOUSE ARREST AN OFFENDER CAN BE DETAINED FOR 5000 PLUS 10 A DAY WHAT'S MORE PRISONS ARE OPERATING AT OVER 100 OF CAPACITY MR STEINBERG ESTIMATES THERE ARE 13 MILLION PEOPLE IN US PRISONS ABOUT ONE IN FOUR OF THEM NONVIOLENT CRIMINALS WHO COULD BE SWITCHED TO ELECTRONICALLY MONITORED HOUSE ARREST YET THE TECHNIQUE SO FAR HAS BEEN USED IN ONLY ABOUT 25000 CASES BI WITH REVENUE OF 13 MILLION IN THE FIRST HALF ENDED DEC 31 IS THE LARGEST MAKER OF ELECTRONIC MONITORING DEVICES FOR CRIMINALS HE SAYS LAST YEAR IT ACQUIRED ITS BIGGEST COMPETITOR A DIVISION OF CINCINNATI MICROWAVE INC SO THERE IS CURRENTLY NO STRONG NO 2 THIS YEAR MR STEINBERG ESTIMATES BI WILL EARN 40 CENTS A SHARE COMPARED WITH ABOUT TWO CENTS A SHARE LAST YEAR I'M ESTIMATING THAT IN SIX MONTHS THIS COULD BE A 14 STOCK HE SAYS THE STOCK CLOSED YESTERDAY AT 825 OFF 25 CENTS ON THE NASDAQ OVERTHECOUNTER MARKET TWO NEW CONTESTANTS WILL JOIN MESSRS PRICE AND STEINBERG IN TRYING TO RESTORE THE PROS' DEFLATED HONOR DAVID ELIAS HEADS ELIAS ASSET MANAGEMENT IN BUFFALO NY DOUGLAS RABORN IS CHAIRMAN OF RABORN & CO IN DELRAY BEACH FLA MR ELIAS IS CASTING HIS LOT WITH PRAXAIR INC A PRODUCER OF INDUSTRIAL GASES SPUN OFF BY UNION CARBIDE CORP LAST YEAR SHARES OF THE DANBURY CONN COMPANY CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 16875 OFF 125 CENTS YESTERDAY MR ELIAS THINKS THEY WILL HIT 22 TO 24 WITHIN 18 MONTHS HE HAS BEEN BUYING THE STOCK AT PRICES UP TO 17 ONE GOOD SIGN HE SAYS IS THAT MANAGEMENT OWNS A LOT OF STOCK AND WILL GET A GREAT DEAL MORE IF THE COMPANY ACHIEVES CUMULATIVE EARNINGS OF 830 MILLION OVER A FIVEYEAR PERIOD HE THINKS PRAXAIR IS IN GOOD NICHES WITH SEVERAL PRODUCTS THAT CAN MAKE INDUSTRIAL PROCESSES RUN CLEANER AND HE THINKS THE STOCK IS CHEAP CONSIDERING HIS ESTIMATE THAT EARNINGS WILL HIT 115 A SHARE THIS YEAR AND 135 IN 1994 MR RABORN LIKES SPRINT CORP THE THIRDLARGEST LONGDISTANCE PHONE COMPANY WITH ABOUT 6 OF THE US LONGDISTANCE MARKET TO AMERICAN TELEPHONE & TELEGRAPH CO'S 60 AND MCI COMMUNICATIONS CORP'S 10 SOME 90 SMALLER CARRIERS SHARE THE REMAINING 24 OF THE MARKET AND IT IS THEIR LUNCH THAT MR RABORN EXPECTS SPRINT AND AT&T AND MCI TO EAT MORE CONSOLIDATION IS COMING HE PREDICTS THROUGH ITS ACQUISITION OF CENTEL SPRINT ALSO IS ACTIVE IN CELLULAR PHONE SERVICE AND LOCAL PHONE SERVICE MAKING IT IN MR RABORN'S VIEW AN UNUSUALLY WELLBALANCED COMMUNICATIONS COMPANY HE THINKS THE PURCHASE PRICE FOR CENTEL WAS A GREAT DEAL FOR SPRINT MERGER EXPENSES WILL HOLD SPRINT'S EARNINGS DOWN TO AT MOST 170 A SHARE THIS YEAR MR RABORN GUESSES BUT NEXT YEAR HE ENVISIONS 250 IF THAT'S TRUE SPRINT STOCK WHICH ROSE 125 CENTS TO 29 YESTERDAY IN BIG BOARD TRADING IS SELLING FOR LESS THAN 12 TIMES NEXT YEAR'S EARNINGS MORE IMPORTANT TO MR RABORN IT'S AT ONLY FOUR TIMES ESTIMATED CASH FLOW FOR THE COMING SIX MONTHS THE PROS' SELECTIONS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF CARLISLE COS ENVIRONMENTAL TECHNOLOGIES CORP PEOPLES BANCORP AND SPROUSE REITZ STORES INC RETURNING CHAMPIONS AREN'T ANY MORE LIKELY TO PICK PROFITABLE STOCKS THAN NEWCOMERS ARE IN THE INVESTMENT DARTBOARD CONTEST THAT'S A FINDING IN A STUDY OF THE CONTEST BY PROFESSOR ALAN ATKINS OF UNIVERSITY OF ARIZONA AND JAMES A SUNDALI THEY FOUND THAT STOCKPICKING SUCCESS WAS ROUGHLY THE SAME FOR THE NEWCOMERS TO THE CONTEST AS IT WAS FOR THE PEOPLE RIDING A HOT STREAK PEOPLE WHO FINISH FIRST OR SECOND ARE INVITED TO REENTER THE CONTEST NEWCOMERS ON AVERAGE ACHIEVED A 36 GAIN RETURNING INVESTMENT PROS GAINED AN AVERAGE 18 ON THEIR SECOND TRY PLAYERS ON AVERAGE GAINED 21 IN THE THIRD ROUND 26 IN THE FOURTH AND 03 IN THE FIFTH CONTESTANTS WHO WERE APPEARING FOR THE SIXTH TIME OR MORE HAD AN AVERAGE GAIN OF 13 MAYBE THE PROS WERE RUNNING OUT OF IDEAS THE RESEARCHERS DIDN'T GET INTO THAT 9303040131 930304 BUSINESS BRIEF UNUM CORP REINSURANCE NEGOTIATIONS WITH EQUITABLE BREAK DOWN UNITS OF UNUM CORP AND OF EQUITABLE COS SAID THEY HAVE ENDED NEGOTIATING AN ARRANGEMENT UNDER WHICH UNUM WOULD HAVE PROVIDED SERVICED AND REINSURED EQUITABLE'S DISABILITY INCOME PRODUCTS UNUM LIFE INSURANCE CO OF AMERICA PORTLAND MAINE AND EQUITABLE LIFE ASSURANCE SOCIETY OF THE US NEW YORK SAID THEY WERE UNABLE TO REACH AN AGREEMENT ON TERMS THE COMPANIES HAD SIGNED A NONBINDING LETTER OF INTENT FOR UNUM TO REINSURE A SUBSTANTIAL PORTION OF THE INSURANCE RISK ON FUTURE SALES OF EQUITABLE'S INDIVIDUAL DISABILITY POLICIES EQUITABLE LIFE SAID IT IS EXPLORING ALTERNATIVES IN THE DISABILITY INCOME PRODUCTS MARKET IT ADDED THAT NEITHER PROVISIONS NOR GUARANTEES OF EXISTING EQUITABLE DISABILITY INCOME POLICIES WILL CHANGE 9303040130 930304 WHO'S NEWS GENRAD INC GENRAD INC CONCORD MASS MICHAEL S SCOTT MORTON 56 YEARS OLD WAS NAMED A DIRECTOR AT THE MAKER OF ELECTRONICTESTING EQUIPMENT FILLING A VACANCY DR MORTON IS JAY W FORRESTER PROFESSOR OF MANAGEMENT AT THE SLOAN SCHOOL OF MANAGEMENT 9303040129 930304 TECHNOLOGY BRIEF GENENTECH INC A COLLABORATION IS PLANNED ON CYSTIC FIBROSIS THERAPY GENENTECH INC SOUTH SAN FRANCISCO SAID IT WILL COLLABORATE WITH GENVAC A PRIVATELY HELD COMPANY TO DEVELOP GENE THERAPY MEDICATIONS FOR CYSTIC FIBROSIS THE AGREEMENT COULD INVOLVE GENENTECH PAYING UP TO 17 MILLION FOR RESEARCH SUPPORT AND OTHER PAYMENTS INCLUDING ONES FOR FUTURE EQUITY RIGHTS GENENTECH SAID GENENTECH A BIOTECHNOLOGY CONCERN WILL RETAIN WORLDWIDE MARKETING RIGHTS TO ANY GENE THERAPY PRODUCT DEVELOPED FOR CYSTIC FIBROSIS CYSTIC FIBROSIS IS THE MOST COMMON FATAL GENETIC DISEASE AMONG CAUCASIANS GENENTECH SAID AFFECTING ABOUT 30000 AMERICANS GENVAC A NEWLY FORMED BIOTECH COMPANY THAT WILL BE BASED IN MONTGOMERY COUNTY MD WAS FOUNDED BY RONALD CRYSTAL FORMER CHIEF OF THE PULMONARY BRANCH OF THE NATIONAL HEART LUNG AND BLOOD INSTITUTE AT THE NATIONAL INSTITUTES OF HEALTH HE IS THE COMPANY'S CHIEF SCIENTIFIC ADVISER 9303040128 930304 LETTERS TO THE EDITOR MACHINE TRANSLATION IT IS DISTURBING TO SEE A TECHNOLOGY ESSAY WITH EGREGRIOUS AND OBVIOUS ERRORS ABOUT MACHINE TRANSLATION FEB 1 THE EXAMPLE USED OMITTED ACCENTED CHARACTERS WHEN ENTERING SPANISH TEXT WHICH IS THE EQUIVALENT OF SPELLING DOG AS CAT THE ADDITION OF THE OFTREPEATED AND GENERIC BAD PRESS ABOUT THE 1950SSTYLE MACHINETRANSLATION FAILURES HAS NO BEARING ON THE STATE OF THE ART IN 1993 9303040127 930304 INTERNATIONAL BRIEF WOODSIDE PETROLEUM LTD AUSTRALIAN FIRM POSTS DEFICIT OF 16 MILLION FOR PAST YEAR WOODSIDE PETROLEUM LTD AN AUSTRALIAN OIL AND GAS COMPANY REPORTED A LOSS OF 226 MILLION AUSTRALIAN DOLLARS US16 MILLION FOR 1992 IN 1991 THE COMPANY HAD A PROFIT OF A1165 MILLION SALES EDGED UP 14 TO A4526 MILLION THE DIVIDEND WAS KEPT UNCHANGED AT EIGHT AUSTRALIAN CENTS A SHARE WOODSIDE SAID HIGHER PRICES FOR LIQUEFIED NATURAL GAS AND LOWER INTEREST RATES AND FUNDING COSTS WERE OFFSET BY LOWER AUSTRALIAN NATURAL GAS SALES VOLUMES STAGNANT WORLD OIL PRICES AND HIGHER OPERATING COSTS PROFIT AFTER TAX BUT BEFORE ABNORMAL ITEMS FELL 30 TO A632 MILLION BECAUSE IN 1991 THE COMPANY PAID NO TAX BUT IN 1992 IT PAID A483 MILLION OF TAX 9303040126 930304 MARKETING & MEDIA CBS WON SWEEPS' IN FEBRUARY FINAL TALLY WILL SHOW BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CBS NETWORK WON THE FEBRUARY SWEEPS RATINGS PERIOD FINAL NUMBERS TO BE ANNOUNCED TODAY WILL SHOW THE CBS INC UNIT WAS HELPED BY THE STRONG PERFORMANCE OF THE MINISERIES QUEEN THE NETWORK ALSO LED ITS COMPETITORS IN THE NUMBERS OF VIEWERS AMONG TWO KEY GROUPS SOUGHT BY ADVERTISERS ADULTS AGED 18 TO 49 AND 25 TO 54 MOREOVER THE NETWORK SEEMS ASSURED OF WINNING THE 199293 TELEVISION SEASON WHEN IT ENDS SEVEN WEEKS FROM NOW EVEN WITHOUT THE STRONG PERFORMANCE OF QUEEN WHICH WAS THE HIGHESTRATED MINISERIES SINCE THE CBS EPIC LONESOME DOVE IN 1989 CBS WAS DOMINANT ABC A UNIT OF CAPITAL CITIES/ABC INC WAS A SOLID SECOND HELPED BY OPRAH WINFREY'S INTERVIEW WITH MICHAEL JACKSON IT ALSO IS THE ONLY NETWORK TO IMPROVE ITS RESULTS FROM A YEAR AGO POSTING A 65 RISE IN HOUSEHOLD RATINGS BUT THE COMPARISON IS SKEWED BECAUSE CBS AIRED THE WINTER OLYMPICS GAMES IN FEBRUARY 1992 DRAWING HIGHERTHANNORMAL NUMBERS GENERAL ELECTRIC CO'S NBC WHICH HAS BEEN STRUGGLING ALL SEASON REMAINS A DISTANT THIRD IN HOUSEHOLD RATINGS AND IS THIRD AMONG KEY AGE GROUPS ALTHOUGH IT IS MORE COMPETITIVE THROUGH TUESDAY CBS CAPTURED ABOUT 152 OF THE 931 MILLION US HOMES WITH TELEVISION SETS ALTHOUGH THAT WAS DOWN 85 BECAUSE OF THE LACK OF OLYMPICS PROGRAMMING IT MARKS A HEALTHY 12 RISE FROM FEBURARY 1991 ABC IS NO 2 WITH 129 AND NBC DREW 115 OF US HOMES DOWN 13 FROM A YEAR AGO NEWS CORP'S FOX NETWORK WHICH PROGRAMS 14 HOURS A WEEK COMPARED WITH THE OTHER NETWORKS' 22 AVERAGED 84 OF THE VIEWERS ABOUT EVEN WITH LAST YEAR WHEN IT HAD TWO FEWER NIGHTS OF SHOWS THE NEXT SWEEPS PERIOD IN MAY IS ALREADY SHAPING UP TO BE A COMPETITIVE MONTH TED HARBERT ABC ENTERTAINMENT PRESIDENT SAID THE NETWORK IS SAVING SOME OF ITS BIGGEST PROGRAMS FOR THE PERIOD AT THE REQUEST OF AFFILIATES NBC ALSO WILL HAVE SEVERAL EVENT NIGHTS INCLUDING THE FINALE OF CHEERS CBS MEANWHILE WILL LAUNCH A HALFDOZEN NEW SERIES IN APRIL WHICH WILL AIR THROUGH MAY THE FEBRUARY SWEEPS ONE OF FOUR MONTHS DESIGNATED ANNUALLY WHEN THE RATINGS ARE USED BY A NETWORK'S LOCAL STATIONS TO SET LOCAL ADVERTISING RATES ENDED LAST NIGHT FINAL RESULTS AS TABULATED BY AC NIELSEN CO ARE TO BE ANNOUNCED TODAY 9303040125 930304 CISCO OPENS TWO FOREIGN UNITS MENLO PARK CALIF CISCO SYSTEMS INC SAID IT OPENED TWO NEW SUBSIDIARIES IN FOREIGN COUNTRIES THE MAKER OF COMPUTER NETWORKING PRODUCTS SAID IT OPENED A HONG KONG UNIT ITS THIRD IN THE ASIAPACIFIC REGION TO SUPPORT SALES EFFORTS OF CISCO'S DISTRIBUTORS AND RESELLERS IN THE AREA CISCO SAID IT ALSO OPENED A UNIT IN MEXICO IN EFFORTS TO EXPAND ITS MARKET IN THAT COUNTRY 9303040124 930304 REPORT DISCUSSES SOFT' CONTRIBUTIONS TO PARTIES IN 1992 BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WHO HAS PLEDGED TO REVAMP THE CAMPAIGNFINANCE SYSTEM HELPED THE DEMOCRATIC PARTY RAISE 201 MILLION IN CONTRIBUTIONS THAT FELL OUTSIDE FEDERAL LIMITS DURING LAST YEAR'S GENERALELECTION SEASON THE FUNDS RAISED BY MR CLINTON AND THE DEMOCRATIC NATIONAL COMMITTEE EASILY EXCEEDED THE 128 MILLION IN SIMILAR CONTRIBUTIONS GATHERED BY PRESIDENT BUSH AND THE REPUBLICAN NATIONAL COMMITTEE DURING THE SAME PERIOD ACCORDING TO A REPORT FROM COMMON CAUSE A NONPARTISAN PUBLICINTEREST GROUP PUSHING FOR CAMPAIGN FINANCE REFORM THE SOCALLED SOFT MONEY CONTRIBUTIONS ARE FUNDS CONTRIBUTED TO A POLITICAL PARTY THAT AREN'T RESTRICTED BY THE LEGAL LIMITS AND PROHIBITIONS ON CONTRIBUTIONS MADE DIRECTLY TO A PRESIDENTIAL CAMPAIGN FEDERAL LAW BANS CORPORATIONS AND LABOR UNIONS FROM MAKING CONTRIBUTIONS TO A FEDERAL ELECTION CAMPAIGN AND IT LIMITS THE AMOUNT THAT INDIVIDUALS AND POLITICAL ACTION COMMITTEES CAN CONTRIBUTE BUT POLITICAL PARTIES STILL ARE FREE TO COLLECT MONEY BEYOND THOSE BOUNDARIES FOR PARTY BUILDING AND OTHER PURPOSES THAT AREN'T DIRECTLY TIED TO A PRESIDENTIAL CAMPAIGN ADVOCATES OF REFORM HAVE LONG CITED THE FLOW OF SUCH UNCONTROLLED CONTRIBUTIONS AS ONE OF THE MAIN FLAWS IN THE CAMPAIGN FINANCE SYSTEM AND MR CLINTON AS A CANDIDATE PLEDGED TO END THE UNLIMITED SOFT MONEY CONTRIBUTIONS THAT ARE FUNNELED THROUGH NATIONAL STATE AND LOCAL PARTIES TO PRESIDENTIAL CANDIDATES THE COMMON CAUSE REPORT COMPILED FROM PARTY REPORTS FILED WITH THE FEDERAL ELECTION COMMISSION SHOWS THAT FOR THE TWOYEAR ELECTION CYCLE SPANNING 1991 AND 1992 MR BUSH AND THE REPUBLICANS COLLECTED SLIGHTLY MORE SOFT MONEY CONTRIBUTIONS THAN DID THE DEMOCRATS FOR THE TWOYEAR PERIOD AS A WHOLE REPUBLICANS COLLECTED 324 MILLION AND DEMOCRATS 299 MILLION BUT FROM JULY 1 1992 ON WHEN THE GENERALELECTION SEASON WAS UNDER WAY AND IT SEEMED INCREASINGLY LIKELY THAT MR CLINTON WOULD WIN SOFT MONEY BEGAN FLOWING MORE HEAVILY TO DEMOCRATS WHO OUTSTRIPPED REPUBLICANS IN THE SECOND HALF OF 1992 MOREOVER THE BULK OF BIG SOFT MONEY DONATIONS TO THE DEMOCRATIC PARTY CAME FROM BUSINESS RATHER THAN LABOR ACCORDING TO THE COMMON CAUSE REPORT IN ANALYZING CONTRIBUTIONS OF 20000 OR MORE THE GROUP FOUND THAT 137 MILLION IN SUCH CONTRIBUTIONS CAME FROM BUSINESS INTERESTS AND 37 MILLION FROM LABOR UNIONS WHEN ALL CONTRIBUTIONS SOFT MONEY AS WELL AS THOSE MADE SUBJECT TO FEDERAL CAMPAIGN LIMITS ARE TABULATED FOR THE ENTIRE TWOYEAR PERIOD THOUGH MR BUSH AND THE REPUBLICANS COLLECTED MORE THAN DID MR CLINTON AND THE DEMOCRATS THE REPUBLICAN SIDE GATHERED A TOTAL OF 1178 MILLION WHILE THE DEMOCRATS GATHERED 957 MILLION IN RESPONSE TO THE COMMON CAUSE REPORT THE DEMOCRATIC PARTY SAID IT REMAINS INTERESTED IN CHANGING THE CURRENT FINANCING SYSTEM DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM IS A BIG SUPPORTER OF POLITICAL REFORM SAID CATHERINE MOORE A SPOKESWOMAN FOR THE DEMOCRATIC NATIONAL COMMITTEE THE TWO GOALS HE WANTS TO WORK TOWARDS ARE LIMITING THE INFLUENCE OF BIG SPECIAL INTEREST MONEY BUT MAINTAINING AND INCREASING CITIZEN PARTICIPATION 9303040123 930304 TECHNOLOGY & HEALTH COMPAQ TO UNVEIL COMPUTERS AND START NEW ROUND OF PRICE CUTS ANALYSTS SAY BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP WILL ANNOUNCE A SLEW OF NEW NOTEBOOK AND DESKTOP COMPUTERS NEXT WEEK AND ITS MOST EXTENSIVE ROUND OF PRICE CUTTING SO FAR THIS YEAR ANALYSTS AND COMPUTER DEALERS BRIEFED ON THE ANNOUNCEMENT SAID THE NEW MACHINES INCLUDE THREE ADDITIONS TO COMPAQ'S CONTURA FAMILY OF NOTEBOOK COMPUTERS AS WELL AS ENHANCEMENTS TO THE COMPANY'S EXISTING DESKPRO AND PROLINEA DESKTOP FAMILIES THE HOUSTONBASED COMPANY ALSO IS EXPECTED TO UNVEIL ITS FIRST LOWPRICED MULTIMEDIA MACHINE WHICH WILL BE CAPABLE OF PLAYING FULLMOTION VIDEO AND STEREOQUALITY SOUND FOR LESS THAN 2000 COMPAQ IS USING THE NEWPRODUCT INTRODUCTIONS AS AN EXCUSE TO WHACK PRICES ON MOST OF THE REST OF ITS COMPUTER LINE ENDING TWO MONTHS OF RELATIVE SILENCE IN AN INDUSTRY PRICE WAR THAT'S RAGED SINCE LAST SUMMER I DON'T SEE AN END TO THIS UNTIL SOME REALLY BIG PLAYERS DECIDE TO PULL UP STAKES AND GET THE HELL OUT OF THE MARKET SAID JOHN A MURPHY A PERSONAL COMPUTER CONSULTANT IN GIBBSBORO NJ AND I DON'T SEE ANY OF THEM DOING THAT ANYTIME SOON ALTHOUGH COMPAQ OFFICIALS DECLINED TO DISCUSS THE NEW PRODUCTS OR THE EXPECTED PRICE CUTS PEOPLE BRIEFED ON THE PLAN SAY THEY EXPECT SHARP CUTS ON OLDER COMPAQ MODELS PARTICULARLY THOSE RUNNING ON INTEL CORP'S 386 MICROPROCESSOR WHICH IS BEING SUPPLANTED THROUGHOUT MOST OF CORPORATE AMERICA BY THE SWIFTER 486 VERSION ANALYSTS SAID THEY EXPECT MOST OF THE COMPAQ CUTS TO RANGE BETWEEN 10 AND 20 INDUSTRYWIDE MR MURPHY SAID HE EXPECTS PC PRICES TO FALL ABOUT 25 THIS YEAR COMPARED WITH ABOUT 35 IN 1992 BECAUSE THE COMPANY WOULDN'T GIVE DETAILS ON THE SCOPE OF THE CUTS ANALYSTS SAID IT'S TOO EARLY TO SAY WHETHER OTHER COMPANIES WILL FOLLOW SUIT THEY NOTED THAT THE INDUSTRY LARGELY IGNORED PRICE CUTS LATE LAST YEAR FROM DELL COMPUTER CORP BUT THEY SAID IF COMPAQ'S NEW PRICE CUTS ARE PARTICULARLY STEEP OTHERS WILL BE FORCED TO REACT I DON'T THINK THERE'S ANY QUESTION THAT THESE PEOPLE ARE BEING AS AGGRESSIVE AS THEY POSSIBLY CAN SAID WILLIAM C CONROY AN ANALYST AT WILLIAMS MACKAY JORDAN & CO IN HOUSTON IN ADDITION TO THE NEW PRODUCTS AND THE PRICE CUTS COMPAQ ALSO WILL ANNOUNCE DETAILS OF ITS FIRST FULLFLEDGED MAILORDER CAMPAIGN NEXT WEEK THE COMPANY IS PREPARING A CATALOGUE THAT WILL OFFER COMPAQ COMPUTERS MONITORS AND PRINTERS AS WELL AS OTHER COMPANIES' SOFTWARE AND PERIPHERAL EQUIPMENT COMPAQ HAS SET UP A TELEPHONE BANK AT ITS HOUSTON CAMPUS TO HANDLE INCOMING CALLS ON A TOLLFREE TELEPHONE NUMBER THE NEW PROGRAM WHICH WILL PLACE COMPAQ IN DIRECT COMPETITION WITH DELL ITS MAILORDER RIVAL REPLACES AN EFFORT ANNOUNCED LAST YEAR BY THE COMPANY TO RESELL ITS MACHINES THROUGH SECONDPARTY MAILORDER VENDORS LIKE DIGITAL EQUIPMENT CORP AND INTERNATIONAL BUSINESS MACHINES CORP WHICH ALSO HAVE RECENTLY MOVED INTO THE MAILORDER BUSINESS COMPAQ IS HOPING TO BROADEN ITS DISTRIBUTION NETWORK AND TAP INTO A CUSTOMER BASE ACCUSTOMED TO BUYING PCS ON THE PHONE BUT COMPAQ'S EXISTING DEALERS MANY OF WHOM ARE STILL ON LONG WAITING LISTS FOR THE COMPANY'S MOST POPULAR MODELS SAID THEY HAVE QUESTIONS ABOUT THE NEW DISTRIBUTION STRATEGY AND ITS EFFECT ON THEIR PC SUPPLY IF THEY FEED THE 1800 NUMBER FIRST AND FEED US WHAT GETS LEFT OVER THAT DOESN'T PLAY WELL SAID JEFF MCKEEVER CHAIRMAN OF MICROAGE INC A TEMPE ARIZ COMPUTER RETAIL CHAIN COMPAQ OFFICIALS DECLINED TO COMMENT ON THE COMPANY'S MAILORDER PLANS 9303040122 930304 INTERNATIONAL BRIEF SUMITOMO HEAVY INDUSTRIES LTD EARNINGS FORECAST LOWERED FOR THE CURRENT FISCAL YEAR SUMITOMO HEAVY INDUSTRIES LTD A MAJOR JAPANESE SHIPBUILDER LOWERED ITS EARNINGS FORECASTS FOR THE YEAR ENDING MARCH 31 AS SLUGGISHNESS IN THE ECONOMY PERSISTS SUMITOMO HEAVY ALSO SAID IT PLANS TO LOWER THE DIVIDEND TO THREE YEN 25 CENTS A SHARE FROM FOUR YEN SUMITOMO HEAVY SAID IT NOW EXPECTS CONSOLIDATED OR GROUP PRETAX PROFIT TO TOTAL 25 BILLION YEN DOWN 49 FROM THE PRIOR YEAR'S 488 BILLION YEN AND OFF 50 FROM AN EARLIER PREDICTION OF FIVE BILLION YEN CONSOLIDATED NET INCOME IS NOW EXPECTED TO TOTAL 15 BILLION YEN 54 BELOW 328 BILLION YEN OF A YEAR EARLIER AND 57 OFF THE PAST ESTIMATE OF 35 BILLION YEN CONSOLIDATED SALES ARE SEEN AT 490 BILLION YEN UP 2 FROM 48028 BILLION YEN THE YEAR PRIOR BUT 2 LOWER THAN THE 500 BILLION YEN THAT HAD BEEN ANTICIPATED 9303040120 930304 BUSINESS BRIEF HYUNDAI GROUP BILLIONAIRE FOUNDER VOWS TO BREAK UP CONGLOMERATE BILLIONAIRE CHUNG JU YUNG WHO QUIT SOUTH KOREAN POLITICS AFTER RUNNING A DISTANT THIRD IN PRESIDENTIAL ELECTION SAID HE STILL PLANS TO CARRY OUT PART OF A CAMPAIGN PLEDGE TO BREAK UP MAJOR CONGLOMERATES BY REORGANIZING THE GIANT HYUNDAI GROUP WHICH HE FOUNDED MR CHUNG 77 YEARS OLD SAID HE NOW WOULD RESUME HIS JOB AS HYUNDAI CHAIRMAN AND REORGANIZE THE CONGLOMERATE INTO DOZENS OF SPECIALIZED INDEPENDENTLY MANAGED COMPANIES HE SAID THE WHOLE PROCESS WOULD TAKE A COUPLE OF MONTHS HE DIDN'T ELABORATE MR CHUNG SAID HE IS OBLIGED TO RESTRUCTURE HYUNDAI IN KEEPING WITH HIS CAMPAIGN SLOGANS EVEN THOUGH HE LOST THE DECEMBER ELECTION HE HAD CALLED FOR DISBANDING LARGE BUSINESS GROUPS TO SEVER THEIR DISHONEST AND CORRUPT TIES TO POLITICIANS HYUNDAI KOREA'S LARGEST CONGLOMERATE WITH 170000 EMPLOYEES HAS NEARLY 50 SUBSIDIARIES IN AUTO MAKING SHIPBUILDING CONSTRUCTION ELECTRONICS AND TRADE 9303040119 930304 REVIEW & OUTLOOK EDITORIAL ASIDES TAX NOSHOW USA TODAY BASKETBALL COLUMNIST PETER VECSEY HAS COME UP WITH THE ULTIMATE TAXSHELTER SCHEME AS DEDUCED FROM FORMER OHIO STATE STAR JIMMY JACKSON'S DECISION TO FORGO INCOME RATHER THAN PLAY FOR THE DALLAS MAVERICKS THINK WHAT YOU LIKE BUT THERE'S NO DENYING JACKSON FIGURED OUT A WAY TO BEAT INTERIM PRESIDENT CLINTON'S TAX PLAN DON'T WORK 9303040118 930304 BUSINESS BRIEF GENERAL CINEMA NET DROPPED SHARPLY IN 1ST PERIOD BECAUSE OF YEARAGO GAIN NEWTON MASS GENERAL CINEMA CORP SAID NET INCOME FELL SHARPLY FOR ITS FIRST QUARTER BECAUSE OF A HUGE ONETIME GAIN IN THE YEARAGO PERIOD BUT IT REPORTED A SURPRISING 18 JUMP IN EARNINGS BEFORE SPECIAL ITEMS AS IT REAPED GAINS FROM ITS ACQUISITION OF HARCOURT BRACE & CO HARCOURT'S INSURANCE BUSINESS BOOSTED RESULTS IN THE QUARTER ENDED JAN 31 OFFSETTING AN EXPECTED LOSS IN PUBLISHING THEATER PROFIT ALSO ROSE SHARPLY AS POPULAR FILMS SUCH AS ALADDIN AND HOME ALONE 2 DREW BIGGER CROWDS INTO GENERAL CINEMA'S THEATERS THE COMPANY'S STOCK GAINED 150 TO CLOSE AT 35625 IN NEW YORK STOCK EXCHANGE TRADING THE CONGLOMERATE WHICH ALSO OWNS 65 OF THE NEIMAN MARCUS GROUP SPECIALTY RETAILER REPORTED NET FOR THE FISCAL FIRST QUARTER OF 318 MILLION OR 40 CENTS A SHARE COMPARED WITH YEARAGO NET OF 4072 MILLION OR 515 A SHARE AFTER A GAIN BEFORE THE EXTRAORDINARY GAIN LAST YEAR WHICH RESULTED FROM THE PURCHASE OF DISCOUNTED HARCOURT DEBT YEARAGO OPERATING PROFIT WAS 269 MILLION OR 34 CENTS A SHARE THE ONETIME GAIN WAS 4196 MILLION PARTLY OFFSET BY A CHARGE OF 392 MILLION TO REFLECT AN ACCOUNTING CHANGE FOR POSTRETIREMENT HEALTH CARE REVENUE INCREASED 67 TO 9422 MILLION FROM 883 MILLION THIS IS THE FIFTH CONSECUTIVE QUARTERLY EARNINGS SURPRISE EACH DRIVEN BY HARCOURT OPERATIONS SAYS KARA CHESEBY AN ANALYST AT LEGG MASON WOOD WALKER IT'S BECOME A WONDERFUL ACQUISITION WHEN IT WAS PURCHASED FOR 13 BILLION IN LATE 1991 THE PUBLISHING AND INSURANCE CONCERN WAS LADEN WITH DEBT AND LOSING MARKET SHARE HARCOURT'S HEALTH LIFE AND ACCIDENT INSURANCE UNIT CONTRIBUTED 175 MILLION TO THE QUARTER UP 75 FROM A YEAR AGO WHILE THOSE GAINS MAY NOT BE SUSTAINABLE THROUGH THE YEAR THE COMPANY FORECAST STRONG OPERATING PROFIT IN THE SECOND HALF FROM HARCOURT'S BIG TEXTBOOK OPERATIONS WHICH ARE SEASONALLY WEAK IN FIRST HALF THE UNIT HAD A LOSS OF 69 MILLION BECAUSE OF STARTUP COSTS ON A NEW TAXTBOOK LINE COMPARED WITH A RESTATED 91 MILLION OPERATING PROFIT IN THE YEARAGO QUARTER OPERATING PROFIT AT GENERAL CINEMA'S THEATERS WAS UP 49 TO 87 MILLION IN THE SPECIALTY RETAIL SEGMENT NEIMAN MARCUS AND BERGDORF GOODMAN STORES' RESULTS WERE STRONG AS EXPECTED CONTRIBUTING 267 MILLION OR 34 CENTS A SHARE TO FIRSTQUARTER EARNINGS COMPARED WITH 75 MILLION OR 10 CENTS A SHARE A YEAR EARLIER 9303040117 930304 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH CO TOLLFREE SERVICE AVAILABLE ON DEMAND TO BE OFFERED AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL OFFER TOLLFREE TELEPHONE SERVICE THAT'S AVAILABLE ON DEMAND AT&T'S NEW SERVICE WOULD ALLOW BUSINESSES TO SWITCH THEIR TOLLFREE PHONE NUMBER OFF WITH 24 HOURS' NOTICE KEEPING THE SAME 800 NUMBER WHEN SERVICE IS RESUMED AT&T BASED IN NEW YORK PLANS TO LEVY A 35 MONTHLY FEEPLUS USAGE CHARGESWHEN THE NUMBER IS ACTIVE BUT ONLY 5 A MONTH WHEN IT'S SWITCHED OFF CUSTOMERS WOULD PAY 5 TO REACTIVATE A NUMBER WHEN A TOLLFREE NUMBER IS INACTIVE CALLERS WOULD HEAR A RECORDED MESSAGE AT&T SAID THE FEATURE SHOULD BE ATTRACTIVE TO BUSINESSES WITH BIG SEASONAL SWINGS IN PHONE TRAFFIC SUCH AS HOLIDAY RESORTS AND CHRISTMAS CATALOG MERCHANTS 9303040116 930304 TECHNOLOGY & HEALTH DOCTOR BILLS VARY GREATLY IN US FOR OLDER PATIENTS BOSTON AP DOCTOR BILLS FOR OLDER PEOPLE VARY SHARPLY ACROSS THE COUNTRY AND ARE TWICE AS HIGH IN SOME PLACES AS IN OTHERS A STUDY SHOWS MIAMI IS THE MOST EXPENSIVE MAJOR AREA IN THE US IN WHICH TO GET SICK THE WINTER MIGRATION OF ELDERLY PEOPLE TO FLORIDA WAS TAKEN INTO ACCOUNT BY COUNTING PATIENTS IN THE STATES WHERE THEY LIVED PERMANENTLY NOT WHERE THEY WERE HOSPITALIZED THE STUDY SUGGESTS TO US THAT THERE ARE DIFFERENCES IN THE COMMUNITY PRACTICE STANDARDS SAID DR MARK E MILLER A HEALTH POLICY RESEARCHER HE AND OTHER RESEARCHERS AT THE URBAN INSTITUTE IN WASHINGTON LOOKED AT THE AVERAGE DOCTOR BILLS FOR ALL MEDICARE PATIENTS IN US METROPOLITAN AREAS IN 1989 AMONG THE FINDINGS PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE IN THE 25 BIGGEST CITIES AVERAGE OVERALL PAYMENTS TO PHYSICIANS PER BENEFICIARY WERE HIGHEST IN MIAMI AT 1874 A YEAR THEY WERE LOWEST IN SAN FRANCISCO AT 872 STATES WITH THE HIGHEST PAYMENTS WERE FLORIDA LOUISIANA AND MICHIGAN THE LOWEST WERE THE CANADIAN BORDER STATES IN THE WEST AND SEVERAL ROCKY MOUNTAIN STATES CHARGES WERE LOWER IN PLACES WITH RELATIVELY MORE FAMILY DOCTORS AND FEWER SPECIALISTS THE RESEARCHERS FOUND NO DIFFERENCE IN PEOPLE'S OVERALL HEALTH 9303040115 930304 WHO'S NEWS DAY RUNNER INC DAY RUNNER INC FULLERTON CALIF JAMES E FREEMAN JR 45 YEARS OLD WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER OF THIS MAKER OF PERSONAL ORGANIZER BOOKS HE PREVIOUSLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF STUART HALL CO 9303040112 930304 BUSINESS BRIEF COMINCO LTD MOST FERTILIZER OPERATIONS ARE GOING TO BE SPLIT OFF COMINCO LTD VANCOUVER BRITISH COLUMBIA SAID IT WILL SPLIT OFF MOST OF ITS FERTILIZER OPERATIONS INTO A NEW COMPANY AND THEN RECAPITALIZE THE BUSINESS THROUGH AN INITIAL PUBLIC OFFERING OF SHARES THAT'S EXPECTED TO RAISE ABOUT 100 MILLION CANADIAN DOLLARS US802 MILLION COMINCO A METALS CONCERN SAID IT EXPECTS TO SELL TO THE PUBLIC BETWEEN 30 AND 40 OF THE EQUITY IN THE NEW COMPANY COMINCO FERTILIZERS LTD COMINCO SAID IT WILL RETAIN BETWEEN 50 AND 60 OF COMINCO FERTILIZERS ANOTHER 10 WILL BE OWNED BY ALBERTA ENERGY CO WHICH HAS INTERESTS IN COMINCO'S NITROGEN BUSINESSES THE TRANSACTION IS EXPECTED TO CLOSE BY THE END OF APRIL LAST YEAR COMINCO'S FERTILIZER OPERATIONS HAD OPERATING PROFIT OF C291 MILLION ON SALES OF C3548 MILLION COMINCO SAID THE PROCEEDS FROM THE SHARE OFFERING WILL BE USED TO REDUCE DEBT OF ABOUT C200 MILLION HELD BY COMINCO FERTILIZERS 9303040111 930304 INTERNATIONAL BRIEF CHARGEURS SA EARNINGS DOUBLED IN 1992 ON ONETIME CAPITAL GAIN FRENCH TEXTILE COMMUNICATIONS AND TRANSPORT GROUP CHARGEURS SA SAID NET INCOME NEARLY DOUBLED IN 1992 FROM THE PREVIOUS YEAR TO 724 MILLION FRANCS 130 MILLION FROM 314 MILLION FRANCS BUT THE RISE LARGELY CAME FROM A ONETIME CAPITAL GAIN THE COMPANY ALSO SAID 1993 WILL BE A VERY DIFFICULT YEAR FOR EUROPE AND CHARGEURS CHARGEURS LEFT ITS DIVIDEND UNCHANGED AT 187 FRANCS CHARGEURS SAID THAT THE FIRST HALF OF 1992 WAS PARTICULARLY SATISFYING BUT THAT BY THE SECOND HALF THE CLIMATE HAD TURNED BAD FOR ALMOST ALL ITS BUSINESSES THE GROUP'S TEXTILE BUSINESS SWUNG TO A 193 MILLIONFRANC PROFIT AFTER A 30 MILLION FRANC LOSS IN THE YEAREARLIER PERIOD BUT OPERATING LOSSES WERE SEEN IN ITS PATHE CINEMA PATHE TELEVISION GUILD AND AVALON DIVISIONS THE COMPANY SAID THE BRIGHT NOTE IS BSKYB THE BRITISH SATELLITE TV GROUP IN WHICH CHARGEURS HOLDS A 159 STAKE SUBSCRIBERS ROSE TO 22 MILLION FROM 800000 DURING THE YEAR 9303040110 930304 WHO'S NEWS PEPSICO INC PEPSICO INC PURCHASE NY LAURENCE M ZWAIN WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OPERATIONS FOR KFC INTERNATIONAL A DIVISION OF THIS FOOD AND BEVERAGE COMPANY MR ZWAIN 40 YEARS OLD WAS FORMERLY VICE PRESIDENT WESTERN DIVISION OF PIZZA HUT ANOTHER PEPSICO UNIT 9303040109 930304 WHO'S NEWS CAMPBELL SOUP CO CAMPBELL SOUP CO CAMDEN NJ CHARLES V MCCARTHY WAS NAMED PRESIDENT OF THIS FOOD CONCERN'S PEPPERIDGE FARM INC BAKERY UNIT MR MCCARTHY 43 YEARS OLD WAS PREVIOUSLY PRESIDENT OF CAMPBELL SOUP'S US SALES FORCE HE SUCCEEDS RICHARD A SHEA WHO WILL REMAIN PRESIDENT OF CAMPBELL SOUP'S BISCUIT AND BAKERY DIVISION 9303040108 930304 MARKETSCAN LIGHT' FOODS ARE HAVING HEAVY GOING BY KATHLEEN DEVENY IMAGINE THIS CREAMY SALAD DRESSING BUTTERY POUND CAKE AND CRISPY BACON STRIPS ALL HEAVY ON FLAVOR AND LIGHT ON FAT AND CALORIES DREAM ON MARKETERS NOW CONCEDE THE QUEST FOR SUCH TASTY LOWFAT LOWCALORIE FOODS HAS PROVED CONSIDERABLY MORE DIFFICULT THAN ANTICIPATED FOOD SHOPPERS MAY SAY THEY WANT TO CONSUME LESS FAT BUT RELATIVELY FEW ACTUALLY DROP LIGHT PRODUCTS INTO THEIR CARTS WHILE THERE HAVE BEEN SOME SUCCESSES SALES OF MANY REDUCED FAT OR HEALTHY PRODUCTS ARE LANGUISHING NOT THAT FOOD PROCESSORS ARE BACKING AWAY FROM A MARKET THEY HAVE SPENT HUNDREDS OF MILLIONS OF DOLLARS TO CREATE WE THINK THIS IS AN IMPORTANT FUNDAMENTAL FOOD TREND SAYS JERRY NOONAN CATEGORY BUSINESS DIRECTOR FOR RJR NABISCO INC'S NABISCO COOKIE BUSINESS LATER THIS MONTH NABISCO PLANS TO CONVERT ALL FRUIT FLAVORS OF ITS NEWTONS COOKIE LINE TO A FATFREE RECIPE A FULLFAT VERSION OF ONLY THE ORIGINAL FIG NEWTON WILL REMAIN ON THE MARKET SAYS MR NOONAN WE BELIEVE THE NEXT GENERATION OF CONSUMERS WILL BE EVEN MORE HEALTHCONSCIOUS MARKETERS ARE SCRAMBLING TO MAKE ADJUSTMENTS COMPANIES LIKE NABISCO AND CPC INTERNATIONAL INC ARE HEADING BACK TO THE TEST KITCHEN IN AN EFFORT TO WHIP UP MORE FLAVORFUL PRODUCTS OR ENTIRELY NEW BRANDS THAT WILL SATISFY BOTH HEALTH AND TASTE DEMANDS OTHERS INCLUDING THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS ARE FIDDLING WITH THEIR PRODUCT PITCHES AND SOME MARKETERS SUCH AS CAMPBELL SOUP CO HAVE TOUTED THE GOODFORYOU INGREDIENTS THEIR PRODUCTS CONTAIN SUCH AS BETA CAROTENE OR CALCIUM RATHER THAN THE ABSENCE OF FAT OR SODIUM SUPERMARKET SALES DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNDERSCORE THE CHALLENGE SALES OF KRAFT FREE SALAD DRESSINGS GREW 9 LAST YEAR COMPARED WITH 1991 BUT SALES OF KRAFT'S MIRACLE WHIP FREE DIPPED 11 IN THE SAME PERIOD WHILE NABISCO CAN'T MEET DEMAND FOR NEW SNACKWELL'S DEVIL'S FOOD COOKIE CAKES SALES OF RALSTON PURINA CO'S HOSTESS LIGHTS SNACK CAKES PLUMMETED 29 AND SINCE ITS APRIL LAUNCH MARS INC'S MILKY WAY II REDUCEDCALORIE CANDY BAR HAS RUNG UP SUPERMARKET SALES OF 11 MILLION WHICH CANDYINDUSTRY EXPERTS CONSIDER A HEALTHY START COMPLICATING MARKETING EFFORTS IS DIFFICULTY IN GETTING THE SKINNY ON WHAT FOOD SHOPPERS REALLY WANT INDEED CONSUMERS' CONCERNS HAVE BEEN A MOVING TARGET OVER THE PAST DECADE PEOPLE WHO MOSTLY COUNTED CALORIES IN THE MID1980S FRETTED MORE ABOUT THEIR CHOLESTEROL LEVELS BY THE END OF THE DECADE NOW FAT HAS BECOME AMERICA'S NO 1 DIETARY SCOURGE A LARGE PERCENTAGE OF PEOPLE SAY THEY ARE CONCERNED ABOUT FAT SAYS LAWRENCE K HATHAWAY PRESIDENT OF CPC INTERNATIONAL'S BEST FOODS GROCERY DIVISION BUT THE PERCENTAGE OF PEOPLE ACTUALLY BUYING FATFREE OR FATREDUCED PRODUCTS IS NOT NEARLY AS GREAT THE BIGGEST OBSTACLE FOR MARKETERS IS THE FACT THAT MANY LIGHT PRODUCTS SIMPLY DON'T TASTE AS GOOD AS THEIR FATLADEN COUSINS AND SKEPTICAL CONSUMERS DON'T THINK THE FLAVOR TRADEOFF JUSTIFIES WHAT IS OFTEN A PALTRY SAVINGS IN FAT OR CALORIES FAKE FATS INCLUDING MONSANTO CO'S SIMPLESSE HAVE MADE A BIG SPLASH IN RECENT YEARS BUT MARKETERS SAY FEW OF THE SUBSTITUTES ADEQUATELY CARRY FLAVOR AND MOISTURE THE WAY REAL FAT DOES CONSEQUENTLY MORE MANUFACTURERS ARE EXPERIMENTING WITH BLENDS OF REAL FATS AND REPLACERS LAST FALL FOR EXAMPLE KRAFT ANNOUNCED A SOURCREAM PRODUCT THAT INCLUDES SIMPLESSE BUT RETAINS SOME BUTTER FAT FOR RICHER FLAVOR THE DEVELOPMENT OF NOFAT FOODS HASN'T BEEN AS DRAMATIC AS EXPECTED SAYS JOHN MCMILLIN A PRUDENTIAL SECURITIES INC ANALYST BUT AS FAR AS THE TECHNOLOGY IS CONCERNED WE'RE ONLY IN THE FIRST OR SECOND INNING OF THE GAME MARKETERS MEANWHILE ARE BUSY TINKERING WITH THEIR RECIPES AFTER UNSUCCESSFULLY ATTEMPTING TO DEVELOP A FATFREE MAYONNAISE THAT TASTES AS GOOD AS THE REAL THING CPC INTERNATIONAL BEGAN SHIPPING THIS MONTH A NEW HELLMANN'S REDUCEDFAT MAYONNAISE THE COMPANY ALREADY HAS A LIGHT VERSION WHICH HAS FEWER CALORIES BUT THE SAME AMOUNT OF FAT AND A REDUCEDCHOLESTEROL MAYO THAT WILL BE PHASED OUT THE COMPANY IS ALSO BETTING ON NEW MAZOLA RIGHT BLEND OIL WHICH COMBINES HEALTHFUL CANOLA OIL WITH TASTIER CORN OIL IN ADDITION TO SPINNING OUT A NEW CRANBERRY FLAVOR OF ITS FATFREE NEWTONS NABISCO IS ALSO COOKING UP ADDITIONS TO ITS SNACKWELL'S LINE OF COOKIES AND CRACKERS INCLUDING A REDUCEDFAT VANILLASANDWICH COOKIE ONE ADVANTAGE OF DEVELOPING AN ENTIRELY NEW BRAND FINICKY CONSUMERS DON'T HAVE A FULLFLAVOR ORIGINAL FOR COMPARISON AND NABISCO IS BEING CAREFUL NOT TO PUSH THE HEALTHFUL ASPECTS OF ITS NEW LINE TOO HARD INSTEAD THE COMPANY POSITIONS ITS SNACKWELL'S CHOCOLATECHIP AND OATMEALRAISIN COOKIES AS INDULGENCES THAT AREN'T QUITE AS BAD FOR YOU AS REGULAR COOKIES THE REDUCED FAT OR HEALTHY MESSAGE IS PRETTY SIMPLE AND CONSUMERS GET IT SAYS NABISCO'S MR NOONAN THE REAL CHALLENGE IS GETTING THEM TO BELIEVE THE PRODUCTS TASTE GOOD SIMILARLY KRAFT GENERAL FOODS FOUND THAT CONSUMERS WHO TRIED ITS KRAFT LIGHT LINE OF SALAD DRESSINGS AND CHEESES APPARENTLY DIDN'T FEEL THE ONETHIRD REDUCTION IN FAT WAS WORTH THE TASTE TRADEOFF THE COMPANY THEN BEGAN TO TOUT THE FLAVOR OF ITS LIGHT PRODUCTS RATHER THAN THEIR LACK OF BADFORYOU INGREDIENTS TOWARD THAT END IT LAST YEAR CHANGED THE NAME OF THE LINE FROM KRAFT LIGHT TO KRAFT DELICIOUSLY LIGHT THE COMPANY RAN ADS LAST FALL THAT FEATURED A FATHER WHO FINDS KRAFT DELICIOUSLY LIGHT SALAD DRESSING SO TASTY THAT HE AGREES TO ALLOW HIS PUCKISH SON TO SHAVE HIS HEAD IF THE PRODUCT ISN'T FULLFAT KRAFT CHOSE MEN FOR THE AD PARTLY BECAUSE THEY ARE PERCEIVED AS LESS WILLING THAN DIETCONSCIOUS WOMEN TO SACRIFICE FLAVOR FOR HEALTHFULNESS ALTHOUGH KRAFT HASN'T REFORMULATED THE REDUCEDFAT AND CALORIE PRODUCTS IN ANY WAY A SPOKESWOMAN FOR THE COMPANY MAINTAINS THE MOVES HAVE SLOWED THE BRAND'S DECLINE BEN & JERRY'S HOMEMADE INC MAY HAVE HIT ON ANOTHER RECIPE FOR SUCCESS DON'T MAKE HEALTHFUL PRODUCTS TOO HEALTHFUL AFTER BEN & JERRY'S LIGHT ICE MILKS GATHERED DUST IN RETAILERS' FREEZER CASES FOR NEARLY A YEAR THE COMPANY BEGAN TESTING A LOWFAT FROZEN YOGURT IN THE FIRST YEAR THAT IT WAS AVAILABLE NATIONALLY THE BRAND HAD SUPERMARKET SALES OF 244 MILLION ACCORDING TO INFORMATION RESOURCES RATHER THAN BEING PERCEIVED BY CONSUMERS AS A WIMPY VERSION OF THE COMPANY'S ULTRARICH ICE CREAMS THE YOGURTS SEEM LIKE AN ENTIRELY NEW PRODUCT AND APPARENTLY DON'T INVITE THE SAME TYPE OF TASTE COMPARISON AS THE ICE MILKS NOT THAT THE NEW PRODUCT IS SPARTAN THE EIGHT FLAVORS THAT COME PACKED IN PINTS INCLUDE COFFEE ALMOND FUDGE AND HEATH BAR CRUNCH AND EVEN THOUGH THE CHOCOLATE FUDGE BROWNIE FLAVOR SAYS LOWFAT YOGURT ON THE CARTON EACH OF THE FOUR SERVINGS IN A PINT CONTAINER HAS 35 GRAMS OF FAT THAT MEANS 30 OF THE 170 CALORIES IN EACH SERVING OR ABOUT 18 COME FROM FAT IT'S STILL LESS THAN ICE CREAM SAYS A SPOKESMAN FOR THE COMPANY THESE AREN'T REALLY HEALTHY PRODUCTS THEY'RE JUST LESS BAD SAYS JUDITH LANGER A CONSUMERBEHAVIOR EXPERT IN NEW YORK THEY HELP PEOPLE RATIONALIZE WHAT THEY EAT 9303040107 930304 BUSINESS BRIEF BAYERISCHE MOTOREN WERKE AG GERMAN CAR MAKER AFFIRMS IT WON'T CUT WORK SHIFTS BAYERISCHE MOTOREN WERKE AG SAID 1992 WAS ANOTHER SUCCESSFUL YEAR AND REPEATED ITS BOAST THAT IT DOESN'T PLAN TO SHORTEN ITS WORK SHIFTS THIS YEAR AS OTHER GERMAN CAR MAKERS HAVE DONE THE LUXURY CAR MAKER HASN'T RELEASED ANY CONCRETE PROFIT FIGURES YET FOR 1992 BUT HAS SAID IT EXPECTS AN UNCHANGED 1992 DIVIDEND OF 1250 MARKS 762 A SHARE SPEAKING AT THE GENEVA AUTO SHOW BMW CHAIRMAN EBERHARD VON KUENHEIM SAID THE COMPANY OFFERED THE RIGHT MODELS AT THE RIGHT TIME EVEN IN NATIONS WITH DIFFICULT ECONOMIES WE MANAGED TO CREATE GOOD FOOTING IN THE PAST YEAR IN 1992 BMW MANAGED TO OUTSELL ITS ARCHRIVAL MERCEDESBENZ AG IN PASSENGER CARS FOR THE FIRST TIME MERCEDES IS A UNIT OF GERMANY'S DAIMLERBENZ AG LAST MONTH BMW REPORTED THAT ITS 1992 GROUP SALES ROSE 47 TO 312 BILLION MARKS FROM 298 BILLION MARKS IN THE PREVIOUS YEAR BUT THE COMPANY SAID IT EXPECTS BUSINESS TO DECLINE THIS YEAR 9303040106 930304 WHO'S NEWS MINE SAFETY APPLIANCES CO MINE SAFETY APPLIANCES CO PITTSBURGH JOSEPH L CALIHAN 55 YEARS OLD MANAGING PARTNER OF BRADFORD CAPITAL PARTNERS A PRIVATE PITTSBURGH INVESTMENT FIRM WAS NAMED A DIRECTOR OF THIS MINING EQUIPMENT MANUFACTURER MR CALIHAN ALSO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BRADFORD CAPITAL CORP A GENERAL PARTNER IN SEVERAL CLOSELY HELD LIMITED PARTNERSHIPS HE FILLS A VACANCY ON THE EIGHTMEMBER BOARD CREATED BY THE JUNE 1992 RETIREMENT OF EUGENE W MERRY 9303040105 930304 WHO'S NEWS JP MORGAN & CO JP MORGAN & CO NEW YORK JOHN F RUFFLE 55 YEARS OLD IS RETIRING AS A VICE CHAIRMAN AND DIRECTOR OF THIS GLOBAL FINANCIAL SERVICES CONCERN AT THE END OF MAY FOR PERSONAL REASONS RODNEY B WAGNER 61 A MANAGING DIRECTOR RESPONSIBLE FOR THE FIRM'S BUSINESS IN EMERGING MARKETS WILL BE PROPOSED TO SUCCEED MR RUFFLE AS A VICE CHAIRMAN AND DIRECTOR AT A BOARD MEETING WEDNESDAY MR WAGNER WHO WILL BECOME A MEMBER OF THE COMPANY'S CORPORATE OFFICE WILL CONTINUE HIS ROLE IN DEVELOPING THE EMERGING MARKETS BUSINESS 9303040104 930304 STALLING OUT AFTER YEARS OF GROWTH IN US CAR MARKET JAPANESE SURGE IS OVER STICKER SHOCK COMPETITION FROM DETROIT TURN TIDE AND INVENTORIES BACK UP DID BIG THREE LEARN LESSONS BY KRYSTAL MILLER AND JACQUELINE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL NORMAL ILL THE JAPANESE SHARE OF THE US AUTO MARKET WHICH FOR MORE THAN A DECADE CLIMBED AGGRESSIVELY TO ALMOST A THIRD OF ALL CARS SOLD IN THIS COUNTRY HAS TOPPED OUT THE YEARS OF JAPAN'S STEADY SEEMINGLY INEVITABLE GAINS AT THE EXPENSE OF DETROIT'S BIG THREE CAR COMPANIES ARE OVER NO ONE IS PREDICTING THE DEMISE OF JAPANESE CARS OR ANYTHING LIKE THAT BUT THE SIGNS OF THE TURNING TIDE ARE WIDESPREAD AND COMPELLING AFTER HITTING 30 IN 1991 AND 1992 THE JAPANESE SHARE OF US CAR SALES PLUNGED TO 27 FOR THE FIRST TWO MONTHS OF 1993 WHILE THE BIG THREE'S MARKET SHARE ROSE THREE PERCENTAGE POINTS TO 68 TWO MONTHS IS A SHORT WHEELBASE AS AUTOMOTIVE ANALYSTS QUIP BUT THEY ALSO BELIEVE IT IS LONG ENOUGH TO CONFIRM SHIFTS IN MARKET TRENDS SCENES FROM THE SEA CHANGE NEXT TO MITSUBISHI MOTORS CORP'S ASSEMBLY PLANT HERE SITS A SPRAWLING PARKING LOT CRAMMED WITH SOMETHING THAT DIDN'T EXIST IN THE US THREE YEARS AGO UNSOLD JAPANESE CARS THE PLANT IS RUNNING AT ONLY HALF SPEED BUT THAT ISN'T ENOUGH TO HOLD DOWN BULGING INVENTORIES THAT STOOD AT A WHOPPING 225DAY SUPPLY OF UNSOLD CARS AT THE END OF JANUARY ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL THAT IS NEARLY FOUR TIMES THE IDEAL AMOUNT FOR THE PAST TWO YEARS EVERY CAR MANUFACTURER HAS SUFFERED FROM REDUCED DEMAND LAMENTS TSUNEO OHINOUYE THE MITSUBISHI MAN WHO RUNS THE FACTORY IN THIS CENTRAL ILLINOIS CITY HONDA MOTOR CO SAID IT HAD A 103DAY SUPPLY OF UNSOLD ACCORDS AT THE END OF FEBRUARY IN SHARP CONTRAST TO THE LATE 1980S WHEN HONDA WAS SELLING ACCORDS AS FAST AS IT COULD BUILD THEM AND RARELY HAD MORE THAN A 30DAY SUPPLY ON HAND AFTER LOSING ITS RANKING AS AMERICA'S TOPSELLING CAR TO FORD MOTOR CO'S TAURUS LAST YEAR THE ACCORD TUMBLED TO THE NO 7 POSITION IN JANUARY WHILE THE TAURUS REMAINED NO 1 FOR THE FIRST TIME IN MORE THAN A DECADE FRANK URSOMARSO'S PONTIAC DEALERSHIP IN WILMINGTON DEL IS DRAWING MORE SHOPPERS THAN HIS HONDA STORE ACROSS THE STREET JUST TWO YEARS AGO SHOPPERS POURED IN TO LOOK AT HONDAS AND LEFT THE PONTIAC STORE LIFELESS MORE PEOPLE ARE CONSIDERING DOMESTIC CARS MR URSOMARSO EXPLAINS EVEN AUTO POWERHOUSE TOYOTA MOTOR CORP CONCEDES THAT THE PERIOD OF JAPAN'S UNRESTRAINED GROWTH IN THE US MARKET HAS ENDED WE WOULD LIKE TO MAINTAIN OUR SHARE OF THE MARKET AT WORST AND MAYBE EVEN GAIN A SMALL SHARE SAYS J DAVIS ILLINGWORTH TOYOTA'S GROUP VICE PRESIDENT OF SALES AND MARKETING IN THE US BUT THE DAYS OF RAPID GROWTH ARE GONE IT'S GOING TO BE MUCH MORE COMPETITIVE OF COURSE IT IS POLITICALLY CORRECT FOR TOYOTA TO SAY THAT IN LIGHT OF THE TRADE TENSIONS BETWEEN WASHINGTON AND TOKYO IN FACT WHEN THE JAPANESE MARKET SHARE STARTED TO SLIDE LAST YEAR MANY DETROIT EXECUTIVES ASSUMED THAT THE JAPANESE WERE DELIBERATELY BACKING OFF A BIT UNTIL TRADE FRICTION SUBSIDED EVEN NOW THE BIG THREE'S RECENT PROTECTIONIST PUSH THREATENS TO TAINT THEIR PROGRESS AS A CHEAP POLITICAL GAIN INSTEAD OF A SOLID VICTORY ON THE BATTLEFIELD OF BUSINESS NONETHELESS THE FUNDAMENTAL SIGNS ARE MOUNTING THAT MR ILLINGWORTH IS RIGHT FOR ONE THING THE JAPANESE DON'T HAVE STRONG PRODUCTS IN AMERICA'S HOTTEST AND FASTEST GROWING AUTOMOTIVE SEGMENT LIGHT TRUCKS WHICH INCLUDES PICKUPS MINIVANS AND SPORTUTILITY VEHICLES HONDA FOR EXAMPLE DOESN'T MAKE TRUCKS AT ALL AND TOYOTA'S FULLSIZE PICKUP THE FIRST JAPANESE VEHICLE IN THIS HIGHLY PROFITABLE MARKET SEGMENT HAS HIT THE MARKET WITH A THUD THE PROBLEM WHILE THE TOYOTA TRUCK IS PRICED ABOUT THE SAME AS THE FORD FSERIES PICKUP AND THE CHEVROLET CK PICKUP THE DETROIT MODELS ARE BIGGER AND SPORT MOREPOWERFUL ENGINES AND THAT POINTS TO A SECOND JAPANESE PROBLEM DETROIT HAS DRAMATICALLY IMPROVED THE QUALITY STYLING AND FEATURES ON ITS PRODUCTS TODAY THE AVERAGE AMERICAN CAR HAS 14 DEFECTS SAYS JD POWER & ASSOCIATES A CALIFORNIA CONSULTING FIRM WHILE THE AVERAGE JAPANESE CAR HAS ONE THAT IS A MEASURABLE GAP BUT IN 1980 AMERICAN CARS HAD SIX MORE DEFECTS THAN JAPANESE CARS AND TODAY'S DETROIT DEFECTS ARE MORE LIKELY TO BE AN ILLFITTING GLOVE BOX THAN MISSING ENGINE BOLTS DETROIT'S IMPROVEMENT IS PUTTING HEAVIER COMPETITIVE PRESSURE ON THE JAPANESE AT A TIME WHEN THEY ARE PREOCCUPIED WITH A PROLONGED SLUMP IN THEIR HOME MARKET THAT HAS PLUNGED NISSAN MOTOR CO INTO THE RED BUT THE BIGGEST PROBLEM FACING THE JAPANESE CAN BE SUMMED UP IN ONE WORD PRICE JAPANESECAR BUYERS ARE ABSOLUTELY STUNNED AT THE PRICE DIFFERENCES SAYS MARYANN N KELLER AUTO ANALYST AT FURMEN SELZ INC WHEN THEY WANT TO MOVE UP TO A NEWER MODEL THEY'RE SHOCKED TO FIND OUT HOW MUCH THE CAR COSTS THE JAPANESE HAVE PRICED AGGRESSIVELY TO MAKE UP FOR THE SOARING VALUE OF THE YEN WHICH DEPRESSES US PROFITS AND FOR THE SHRINKING PROFITS IN THEIR HOME MARKET ANALYSTS SAY JAPANESE CARS TYPICALLY COST AN AVERAGE OF 2300 MORE THAN COMPETING DETROIT MODELS TOYOTA'S MR ILLINGWORTH CONCEDES PRICING IS A PROBLEM THE BIGGEST THING IS THE CONSUMER EMPHASIS ON VALUE FOR THE DOLLAR HE SAYS BUT WITH THE PRESSURES ON PRICING BECAUSE OF THE YEN/DOLLAR IT'S BECOME MORE AND MORE DIFFICULT FOR US TO COMPETE IN THE MARKET SOME MODELBYMODEL COMPARISONS ILLUSTRATE THE POINT TOYOTA TOOK A BIG LEAP UPSCALE IN 1991 WHEN IT MADE ITS BREADANDBUTTER MODEL THE CAMRY LARGER AND MORE LUXURIOUS THE MIDSIZE SEDAN WAS INTRODUCED WITH A BASE STICKER PRICE OF 15168 A HEFTY 2300 OR NEARLY 18 HIGHER THAN THAT OF ITS PREDECESSOR NOWADAYS A WELLEQUIPPED CAMRY COSTS MORE THAN A COMPARABLY OUTFITTED FORD TAURUS OR CHRYSLER CORP'S LH SEDANS THE DODGE INTREPID CHRYSLER CONCORDE AND EAGLE VISION ALL OF WHICH ARE LARGER THAN CAMRY FOR INSTANCE A WELLEQUIPPED CAMRY LE LOADED WITH A POWERFUL V6 ENGINE ANTILOCK BRAKES AUTOMATIC TRANSMISSION AND DRIVERSIDE AIR BAG COSTS 21433 THAT IS MORE THAN 2500 HIGHER THAN A COMPARABLY EQUIPPED DODGE INTREPID AT 18729 OR A TAURUS GL AT 18902 AND UNLIKE THE CAMRY THE TAURUS AND THE INTREPID INCLUDE AN AIR BAG FOR THE FRONTSEAT PASSENGER AS WELL AS FOR THE DRIVER SUCH DISPARITIES ARE STARTING TO WIN BACK CONSUMERS WHO ABANDONED BIG THREE VEHICLES IN THE 1980S DANIEL SCHAPIRA OF BELLAIRE TEXAS VOWED NEVER TO PURCHASE A DOMESTIC CAR AFTER OWNING A 1983 BUICK RIVIERA THAT STOPPED RUNNING AFTER 30000 MILES WHEN THE 47YEAROLD OPHTHALMOLOGIST TRADED IN THE RIVIERA IN 1988 HE LEASED AN ACURA LEGEND BUT RECENTLY AS THE LEASE ON HIS LEGEND WAS ABOUT TO EXPIRE DR SCHAPIRA TEST DROVE A CHRYSLER CONCORDE A TOYOTA CAMRY AND A MAZDA 929 HE DECIDED ON THE CONCORDE IT WAS THE PRICE THAT PERSUADED ME HE SAYS WHAT MY MONEY BOUGHT COMPARED TO THOSE OTHER TWO WAS A LOT MORE SIMILAR EXAMPLES ABOUND THE PRICE OF A TOYOTA COROLLA EQUIPPED WITH AN AIRBAG AND ANTILOCK BRAKES STANDS 1400 ABOVE THAT OF GM'S GEO PRIZM BUT THEY ARE VIRTUALLY THE SAME CAR BOTH BUILT IN A TOYOTA/GM JOINTVENTURE FACTORY IN CALIFORNIA THE DIFFERENCE EXISTS MAINLY BECAUSE TOYOTA WANTS A PREMIUM IMAGE FOR ITS PRODUCTS IN ADDITION THE PRIZM USES AN ANTILOCK BRAKING SYSTEM MADE BY GENERAL MOTORS CORP THAT IS PRICED AT 505 COMPARED WITH 825 FOR THE COROLLA'S ANTILOCK BRAKES IMPORTED FROM JAPAN LIKEWISE TOYOTA CHARGES 860 FOR THE COROLLA'S AIR CONDITIONING COMPARED WITH THE 745 PRICE OF AIR CONDITIONING ON THE PRIZM BECAUSE OF THE YEN'S RISE JAPANESEMADE PARTS OFTEN ARE MORE EXPENSIVE THAN COMPONENTS MADE IN THE US AMID ALL THIS AMERICANS ARE NO LONGER WILLING TO PAY A PREMIUM ON A CAR JUST BECAUSE IT IS JAPANESE THE US CAR MARKET IS CHARACTERIZED BY BUYER ANARCHY SAYS ASHLEY KNAPP HEAD OF A CAR CONSULTING AND BUYING SERVICE BRAND LOYALTY IS LOW AND TRENDS DIFFICULT TO PREDICT BUYERS STILL WANT TO TEST DRIVE THE HONDA ACCORD AND TOYOTA CAMRY HE SAYS BUT THEY ALSO WANT TO TEST THE TAURUS AND SATURN ONE VICTIM OF THIS VOLATILITY IS HONDA'S ACURA DIVISION WHICH GOT A HOT START IN THE MID1980S AS THE FIRST JAPANESE LUXURY BRAND BUT NOW ACURA IS STRUGGLING SO FAR THIS YEAR ITS SALES HAVE FALLEN 224 TO 14775 CARS ANALYSTS SAY THE CARS LACK THE DISTINCTIVE STYLING AND AMENITIES NEEDED TO STAND OUT IN THE CROWDED LUXURY SEGMENT ACURA RISKS BECOMING A SECONDCLASS LUXURY CAR SAYS SUSAN JACOBS AN AUTO ANALYST IN LITTLE FALLS NJ THE BIG THREE HAVE BEEN HUMBLED BY WHAT'S HAPPENED IN THE LAST 15 YEARS SAYS JACK KIRNAN AUTO ANALYST AT SALOMON BROTHERS INC THEY'VE LEARNED THEIR LESSON BUT HAVE THEY RECENTLY AS THE JAPANESE HAVE RAISED PRICES TO COMPENSATE FOR THE YEN'S RISE THE BIG THREE HAVE RAISED THEIR OWN PRICES IN THE MIDDLE OF THEIR MODEL YEAR A FAIRLY UNUSUAL STEP FORD LIFTED PRICES ON CERTAIN 1993 MODELS BY AS MUCH AS 286 ABOVE THE INCREASES OF LAST FALL WHEN THE NEW MODELS WERE INTRODUCED CHRYSLER FOLLOWED WITH A PRICE RISE OF AS MUCH AS 100 ON MANY OF ITS POPULAR MODELS GM MEANWHILE RAISED BASE PRICES BY AS MUCH AS 750 ON ALL SATURN CARS AND ON CERTAIN CADILLAC GEO AND CHEVROLET MODELS DETROIT EXECUTIVES DEFEND THE INCREASES SAYING THAT THEY ARE BOTH MODEST AND NECESSARY GM AND FORD LOST MONEY IN 1992 ON NORTH AMERICAN AUTO OPERATIONS AND CHRYSLER INDICATED IT WILL HAVE DIFFICULTY MAINTAINING PROFITABILITY IN THIS INTENSELY COMPETITIVE MARKET THIS IS THE MOST PRICE COMPETITIVE MARKET IN THE WHOLE WORLD SAYS GM PRESIDENT JOHN F SMITH JR PRICES ARE HIGHER IN EUROPE AND JAPAN I DON'T THINK THIS MARKET IS OVERPRICED NONETHELESS MS KELLER WARNS THAT THE BIG THREE MUST BE CAREFUL OF BECOMING ARROGANT AND COMPLACENT INDEED THE JAPANESE FOR ALL THEIR CURRENT WOES REMAIN FORMIDABLE COMPETITORS ESPECIALLY WHEN THEY KEEP A LID ON PRICES NISSAN'S NEW MIDSIZE SEDAN THE ALTIMA SELLS FOR ABOUT 16000 WITH AIR BAG AUTOMATIC TRANSMISSION AIR CONDITIONING AND POWER DOORS AND WINDOWS IN JANUARY THE COMPANY BOOSTED PRODUCTION OF THE ALTIMA WHICH IS BUILT IN TENNESSEE TO MEET ROBUST DEMAND ANOTHER HIT HONDA'S REDESIGNED CIVIC SALES OF THE COMPACT CAR HAVE CLIMBED 216 SO FAR THIS YEAR HONDA ALSO IS PREPARING TO ENTER THE LIGHT TRUCK MARKET NEXT YEAR WITH A SPORTUTILITY VEHICLE IT WILL BE BUILT FOR HONDA IN ISUZU MOTORS LTD'S ASSEMBLY PLANT IN LAYFAYETTE IND WHICH IS OPERATING FAR BELOW CAPACITY FARMING OUT PRODUCTION OF A VEHICLE IS A RADICAL DEPARTURE FOR HONDA WHICH ONCE PRIDED ITSELF ON SHUNNING ALLIANCES WITH OTHER CAR COMPANIES AND THIS FALL HONDA WILL LAUNCH A REVAMPED ACCORD ITS SUCCESS IS ABSOLUTELY VITAL FOR THE COMPANY IN THE LONG TERM JAPANESE AUTO MAKERS WILL PROBABLY SHIFT MORE PRODUCTION TO THEIR NORTH AMERICAN TRANSPLANT FACILITIES FROM JAPAN THE ULTIMATE GOAL ANALYSTS SAY IS TOTAL INTEGRATION INTO THE US MARKET THE MOVE WOULD SPARE THE AUTO MAKERS FROM CURRENCY FLUCTUATIONS POLITICAL PRESSURE AND COSTLY TARIFFS MEANWHILE JAPANESE AUTO MAKERS MAY SWEETEN DISCOUNTS THIS SPRING TO SOFTEN THEIR PRICE INCREASES OF RECENT MONTHS THE JAPANESE PROBABLY WILL RESORT TO CUTRATE LEASING DEALS AND HEFTY DEALER INCENTIVES TO JUMPSTART SALES SAYS CHRISTOPHER CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP INC IN CALIFORNIA TOYOTA ALREADY OFFERS REBATES OF UP TO 1200 ON CERTAIN MODELS TO DEALERS WHO CAN PASS THE SAVINGS ALONG TO CUSTOMERS AND TOYOTA'S MR ILLINGWORTH SAYS THE COMPANY HAS NO PLANS FOR ANY MORE PRICE INCREASES UNTIL THE NEXT MODEL YEAR DESPITE THE PRESSURES FROM THE STRENGTHENING YEN WHATEVER THE JAPANESE DO TO ADJUST THOUGH IT IS CLEAR THAT THEIR 15YEAR CAKEWALK IN THE US CAR MARKET IS OVER I'M NOT SAYING JAPAN'S DOWN FOR THE COUNT SAYS SALOMON BROTHERS' MR KIRNAN BUT THE NEXT TWO OR THREE YEARS COULD BE THE TOUGHEST TIME IN THEIR HISTORY 9303040103 930304 BUSINESS BRIEFS WR GRACE & CO PLANS TO ACQUIRE RIGGERS MEDIZINTECHNIK GMBH TERMS WEREN'T DISCLOSED AMR INFORMATION SERVICES INC A UNIT OF AMR CORP RECEIVED LONGTERM CONTRACTS WITH 10 AIR CARRIERS TO PROVIDE RESERVATIONSYSTEMS SERVICES STORAGE TECHNOLOGY CORP SIGNED A CONTRACT WITH THE FRENCH GOVERNMENT TO OPEN A DATASTORAGE SYSTEMS MANUFACTURING PLANT IN TOULOUSE FRANCE BY LATE 1994 TERMS WEREN'T DISCLOSED NUTRAMAX PRODUCTS INC PLANS TO ACQUIRE OPTOPICS LABORATORIES CORP WITHIN 90 DAYS TERMS WEREN'T DISCLOSED ROSS STORES INC WILL OPEN 11 NEW STORES IN EXISTING MARKETS BY APRIL AND PLANS TO OPEN AN ADDITIONAL 15 NEW STORES DURING THE REMAINDER OF 1993 AMERICAN WASTE SERVICES INC'S EAST LIVERPOOL LANDFILL INC UNIT ACQUIRED A LANDFILL OWNED BY THE CITY OF EAST LIVERPOOL OHIO FOR 1 MILLION 9303040102 930304 THE ARTIST WOULD HAVE TO AGREE HIS WORK CAN GET PRETTY SOPPY BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR ALL THOSE PEOPLE TIRED OF STARING AT THEIR SCUMMY SHOWER TILES BUT TOO LAZY TO CLEAN THEM PETER TUNNEY HAS THE ANSWER THE ARTISTIC MERCHANT BANKER FOR THE D BLECH & CO BROKERAGE FIRM HOPES TO MAKE BATHING A CULTURAL EXPERIENCE WITH AN EXHIBIT OF HIS WORK ENTITLED SHOWER ART OPENING TODAY AT HIS CAVERNOUS SOHO GALLERY THE TIME IS ALWAYS NOW TO HAVE LIVELY AND FUNNY IMAGES IN YOUR SHOWER IS A BIG ASSET IF YOU ARE ALIVE IN 1993 MR TUNNEY WRITES ON HIS INVITATION WHICH IS ALSO ONE OF HIS WATERPROOF OBJETS D'ART WITH A COMFORTABLE LIVING FROM INVESTMENTS IN BIOTECHNOLOGY COMPANIES MR TUNNEY FOUND HIMSELF A FEW YEARS AGO WITH FREE TIME AND A DULL BATHROOM SO HE MADE COPIES OF AN OLD LIFE MAGAZINE AD FOR COCACOLA DOODLED ON IT LAMINATED IT AND USING VELCRO FASTENED ABOUT 100 COPIES TO HIS SHOWER WALL THAT SOON SPAWNED THE KENNEDY MEMORIAL BATHROOM WITH JACKIE AND JOHN JOHN COVERING THE FLOOR THE HOBBY QUICKLY BECAME AN OBSESSION THE 31YEAROLD MR TUNNEY INVESTED IN PROGRESSIVELY MORE HIGHTECH LAMINATING MACHINES AS WELL AS CRAYONS AND OLD TYPEWRITERS STREAMOFCONSCIOUSNESS CAPTIONS ON EACH ART PANEL RUN FROM THE DEEP I REALIZED IT'S NOT EASY BEING ME TO THE NOTSODEEP SEPIA I CAN HONESTLY SAY I NEVER HEARD OF SEPIA THE EXHIBIT MR TUNNEY'S FIRST SHOWS ROW UPON ROW OF THREE IMAGES HIS BATHROOM'S COKE BOTTLE A LOOK COVER OF FRANK SINATRA WITH THE CAPTION TALENT AND TANTRUMS AND A CHILLING LIFE COVER ABOUT THE RICHARD SPECK NURSINGSTUDENT MURDERS HE'S HOPING TO SELL INDIVIDUAL PANELS FOR 20 TO 100 SOME CRITICS OF HIS WORK WITH ITS EXPANSES OF COLOREDIN POP ICONS CALL HIM AN ANDY WARHOL COPYCAT THE INSPIRATION FOR THE EVENT IS CLEARLY ANDY WARHOL AND HIS BLUDGEONING REPETITION SAYS NEW YORK ART DEALER IVAN KARP WHO WORKED WITH WARHOL BUT ITS AESTHETIC MERIT IS LIMITED DID WARHOL EVER DO FRANK SINATRA OR NURSES MR TUNNEY COUNTERS EVENTUALLY HE WANTS TO COVER THE CITIBANK BUILDING WITH LAMINATED IMAGES OF YELLOW FLYING COWS MR TUNNEY CONTENDS THAT HE COLORS AND LAMINATES MAINLY TO STAY SANE WHILE WORKING IN A HIGHPRESSURE NEW YORK JOB IT'S EITHER THIS OR BECOME A SNIPER HE PROCLAIMS 9303040101 930304 WHO'S NEWS SIFCO INDUSTRIES INC SIFCO INDUSTRIES INC CLEVELAND MARILYN F SCOTT 53 YEARS OLD A DIRECTOR SINCE 1988 RESIGNED CITING FAMILY COMMITMENTS AS A RESULT SIFCO'S BOARD WILL BE REDUCED TO 10 MEMBERS FROM 11 MEMBERS THE COMPANY SAID THAT AT THIS TIME IT DOES NOT PLAN TO FILL THE VACANCY SIFCO IS A GLOBAL MANUFACTURER AND MARKETER OF METALWORKING PRODUCTS FOR THE AEROSPACE INDUSTRY 9303040100 930304 WHO'S NEWS USX CORP USX CORP PITTSBURGH JEANETTE GRASSELLI BROWN 64 YEARS OLD WAS NAMED A DIRECTOR OF THIS STEEL OIL AND GAS CONCERN FILLING A VACANCY DR GRASSELLI BROWN A CHEMIST IS A VISITING PROFESSOR AT OHIO STATE UNIVERSITY AND A FORMER DIRECTOR OF CORPORATE RESEARCH AND ANALYTICAL SCIENCES AT BP AMERICA 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 9303040099 930304 COMMODITIES PALLADIUM SURRENDERS MOST OF TUESDAY'S GAINS AS REALITY REGISTERS ON CATALYTIC CONVERTER NEWS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PALLADIUM FUTURES PRICES RETREATED SHARPLY AS TRADERS REASSESSED NEWS OF A NEW PALLADIUMONLY CATALYTIC CONVERTER ANALYSTS EXPRESSED SKEPTICISM THAT THE PRECIOUSMETAL CONTENTS OF CATALYTIC DEVICES WOULD CHANGE ON A MASS SCALE IN THE NEXT FEW YEARS CURRENT SYSTEMS USE A COMBINATION OF PALLADIUM PLATINUM AND OTHER METALS TO CUT HARMFUL AUTOMOBILE EMISSIONS ON THE NEW YORK MERCANTILE EXCHANGE FUTURES PRICES ON THE ACTIVELY TRADED JUNE PALLADIUM CONTRACT SKIDDED 405 TO 10365 AN OUNCE TUESDAY'S 6 AN OUNCE RALLY THE MAXIMUM DAILY PRICE MOVE FOLLOWED AN ANNOUNCEMENT BY ALLIEDSIGNAL INC THAT IT HAD INTRODUCED A NEW CATALYTIC CONVERTER SYSTEM USING PALLADIUM ONLY PLATINUM FOR APRIL DELIVERY INCHED UP 50 CENTS TO 34150 AN OUNCE FOLLOWING TUESDAY'S 480 FALL ANALYSTS NOTED THAT OTHER TECHNOLOGICAL BREAKTHROUGHS HAVE COME AND GONE WITHOUT MUCH IMPACT ON THE MARKET FOR THE ANTIPOLLUTION DEVICES OR ON THE WORLDWIDE DEMAND FOR PALLADIUM AND PLATINUM BOTH NISSAN MOTOR CO AND FORD MOTOR CO HAVE SAID FOR INSTANCE THAT THEY'RE DEVELOPING CATALYTIC CONVERTERS THAT WOULDN'T USE THE EXTREMELY SCARCE AND MORE EXPENSIVE PLATINUM IT CLEARLY WILL TAKE A LONG TIME A FEW YEARS AT LEAST FOR THIS TECHNOLOGY TO REALLY INFLUENCE MARKETS SAID IAN MACDONALD A VICE PRESIDENT AT CREDIT SUISSE THE NEWS COULD HOWEVER PROVIDE A SOLID BASE FOR PALLADIUM OVER THE LONG RUN THERE COULD BE STRONG BUYING FOR STOCKPILE PURPOSES OTHER ANALYSTS CONCURRED THE CURRENT MIX IN CATALYTIC CONVERTERS PLATINUM RHODIUM AND PALLADIUM IS UNLIKELY TO CHANGE SOON SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH THE MARKET HAS RETURNED TO A MORE REALISTIC VALUATION FOR THE TECHNOLOGICAL POTENTIAL OF THE ALLIEDSIGNAL SYSTEM THE COMPANY WHICH ACCOUNTS FOR A QUARTER OF THE INTERNATIONAL MARKET FOR AUTOMOTIVE CATALYSTS SAID IT HAS SOLD THE NEW SYSTEM TO AN AUTO MAKER BUT IT HAS DECLINED TO NAME THE BUYER CATALYTIC CONVERTERS HELP REMOVE CARBON MONOXIDE NITROUS OXIDES AND HYDROCARBONS WHICH RESULT FROM INCOMPLETE COMBUSTION OVER 30 OF ALL NEWLY MINED PLATINUM IS USED IN CATALYTIC CONVERTERS MAKING PRICES SENSITIVE TO MAJOR NEWS FROM THE INTERNATIONAL AUTOMOTIVE INDUSTRY INDEED RECENT NEWS REPORTS FROM JAPAN SUGGESTING THAT JAPANESE IMPORTS OF PLATINUM AND PALLADIUM WILL BE DOWN THIS YEAR THE RESULT OF CUTBACKS IN AUTO PRODUCTION HAVE PRESSURED THE FUTURES PRICES OF BOTH PLATINUM AND PALLADIUM THIS YEAR MR MACDONALD THE CREDIT SUISSE ANALYST ATTRIBUTED PART OF YESTERDAY'S SHARP DECLINE IN PALLADIUM FUTURES TO PROFITTAKING THE MARKETS ARE STILL REALLY SKITTISH ABOUT ANY SUSTAINED RALLY IN METALS PARTICULARLY AMID THE GROWING RECESSIONARY CLIMATES IN JAPAN AND EUROPE HE SAID TRADING AT MOST OF NEW YORK'S FIVE COMMODITY EXCHANGES REMAINS ABBREVIATED OUT OF CONCERN FOR THE POSSIBLE OVERHEATING OF A MAINFRAME COMPUTER THE COMPLEX'S CENTRAL AIR CONDITIONING SYSTEM WAS KNOCKED OUT FRIDAY BY THE DEVASTATING BOMB BLAST IN A GARAGE BELOW THE NEARBY WORLD TRADE CENTER'S TWIN TOWERS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & LIVESTOCK FUTURES PRICES SETTLED LOWER AS TRADERS WAITED FOR MORE DEVELOPMENTS ON US FOOD AID TO RUSSIA THE WHEAT CONTRACT FOR DELIVERY IN MAY AT THE CHICAGO BOARD OF TRADE SLIPPED ONE CENT TO SETTLE AT 339 A BUSHEL THE HOG CONTRACT FOR APRIL DELIVERY AT THE CHICAGO MERCANTILE EXCHANGE DECLINED 02 CENT TO 4592 CENTS A POUND PRICES RALLIED TUESDAY AMID REPORTS THAT A RUSSIAN DELEGATION IN WASHINGTON WAS SEEKING A 1 BILLION FOOD AID PACKAGE FROM THE CLINTON ADMINISTRATION THE AGRICULTURE DEPARTMENT HASN'T SAID MUCH ABOUT THE AMOUNT OF ANY AID IT MIGHT ARRANGE FOR MOSCOW WHICH HAS BEEN UNABLE TO IMPORT MUCH FOOD FROM THE US SINCE IT BEGAN DEFAULTING ON GRAIN LOANS IN NOVEMBER US GRAIN TRADERS ARE SPECULATING THAT A 1 BILLION FOOD AID PACKAGE WOULD KEEP US FARM COMMODITIES FLOWING TO RUSSIA AT ROUGHLY A NORMAL RATE FOR SEVERAL MONTHS WHICH MIGHT BE LONG ENOUGH TO RESTRUCTURE THE SOUR GRAIN LOANS AGRICULTURE SECRETARY MIKE ESPY SAID YESTERDAY THAT HIS RECENT MEETINGS WITH THE RUSSIAN DELEGATION ABOUT THE CREDIT CRISIS RESULTED IN A GREAT DEAL OF UNDERSTANDING BUT HE WARNED THAT SEVERAL ISSUES HAVE YET TO BE RESOLVED INCLUDING WHETHER THE ADMINISTRATION IS WILLING TO SEPARATE RUSSIA'S GRAIN DEBT FROM THE GRAIN DEBT ACCUMULATED BY THE FORMER SOVIET UNION SUCH A MOVE WOULD QUICKLY GET RUSSIA OUT OF DEFAULT BECAUSE NEARLY ALL OF THE 4232 MILLION OF MISSED PAYMENTS ARE FOR 375 BILLION IN THREEYEAR LOANS GENERATED BY THE FORMER SOVIET GOVERNMENT IT'S NOT CLEAR HOWEVER WHAT WOULD HAPPEN TO THE FORMER SOVIET GRAIN DEBT IF RUSSIA IS FREED FROM THAT RESPONSIBILITY RUSSIA ITSELF HAS BORROWED ROUGHLY 117 BILLION TO IMPORT US FARM COMMODITIES IN ADDITION TO FOOD AID SOME US FARM INDUSTRY OFFICIALS ARE PRESSING THE ADMINISTRATION TO EITHER BUY THE SOUR SOVIET LOANS OR STRETCH OUT THE REPAYMENT PERIOD OF ITS CREDIT GUARANTEES TO SEVEN YEARS FROM THE CURRENT THREEYEAR TERM ENERGY PETROLEUM FUTURES WERE GENERALLY HIGHER ON STRONGER FUEL PRICES BOTH HEATING OIL AND GASOLINE HELPED TO PROP UP THE ENERGY COMPLEX DESPITE THIN TRADING AND SHORTENED HOURS ON THE NEW YORK MERCANTILE EXCHANGE THE APRIL CRUDE CONTRACT WAS UP ONLY ONE CENT A BARREL TO 2048 BUT HEATING OIL FOR APRIL DELIVERY ROSE 051 CENT A GALLON TO SETTLE AT 5816 CENTS AND APRIL GASOLINE GAINED EVEN MORE RISING 065 CENT TO 5899 CENTS A GALLON TRADERS ATTRIBUTED THE RELATIVE STRENGTH OF GASOLINE TO THE LATEST INDUSTRY REPORT ON US FUEL STATISTICS WHICH SHOWED A SURPRISING DECREASE OF 11 MILLION BARRELS IN GASOLINE INVENTORIES LAST WEEK ALSO DISTILLATE INVENTORIES WHICH INCLUDE HEATING OIL WERE DOWN FOUR MILLION BARRELS MORE THAN EXPECTED TRADERS ALSO CITED A BULLISH 25 PERCENTAGE POINT DROP IN US REFINERY OPERATIONS LAST WEEK TO 844 OF CAPACITY 9303040098 930304 WHO'S NEWS BRISTOLMYERS NAMES WEG HEAD OF ITS DRUG GROUP BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO NAMED KENNETH E WEG PRESIDENT OF ITS PHARMACEUTICAL GROUP SUCCEEDING EXECUTIVE VICE PRESIDENT AND BOARD MEMBER WAYNE A DAVIDSON WHO IS RETIRING MR WEG WHO SPENT MOST OF HIS CAREER IN THE INTERNATIONAL SIDE OF THE BRISTOLMYERS AND SQUIBB PHARMACEUTICAL BUSINESSES WAS MOST RECENTLY PRESIDENT OF THE PHARMACEUTICAL DIVISION WHERE HE OVERSAW DAYTODAY OPERATIONS OF THE BUSINESS WITH MR WEG'S APPOINTMENT A LAYER OF MANAGEMENT HAS BEEN ELIMINATED A COMPANY SPOKESMAN SAID IN HIS NEW POSITION MR WEG 54 YEARS OLD WILL REPORT DIRECTLY TO THE PRESIDENT CHARLES A HEIMBOLD JR 59 AND HAVE THE ADDITIONAL RESPONSIBILITIES OF OVERSEEING THE PHARMACEUTICAL RESEARCH OPERATIONS AND DEVELOPING THE DIVISION'S STRATEGIC DIRECTION THE SPOKESMAN SAID MR DAVIDSON'S RETIREMENT WAS EXPECTED PARTICULARLY AFTER MR HEIMBOLD'S APPOINTMENT AS BRISTOLMYERS PRESIDENT LAST OCTOBER MR DAVIDSON 61 HAD ONCE BEEN CONSIDERED THE LEADING CANDIDATE TO TAKE OVER THE COMPANY BUT HE APPARENTLY DIDN'T WANT THE JOB ACCORDING TO ANALYSTS MR WEG'S APPOINTMENT SIGNALS THE COMPANY'S RECOGNITION OF THE NEED FOR GLOBAL STRATEGIC EXPERTISE IN MANAGING THE PHARMACEUTICAL BUSINESS ABOUT HALF OF BRISTOLMYERS' PHARMACEUTICAL BUSINESS IS OVERSEAS WHERE SALES GROWTH HAS BEEN OUTPACING THE DOMESTIC MARKET LAST YEAR INTERNATIONAL PHARMACEUTICAL SALES INCREASED 12 COMPARED WITH DOMESTIC SALES GROWTH OF 2 MR WEG TAKES ON SOME BIG PROBLEMS AS HEAD OF BRISTOLMYERS' PHARMACEUTICAL BUSINESS BRISTOLMYERS LAGGED BEHIND THE REST OF THE INDUSTRY IN PHARMACEUTICAL SALES GROWTH LAST YEAR POSTING A 7 INCREASE WHILE OTHER PHARMACEUTICAL COMPANIES REPORTED DOUBLEDIGIT SALES GAINS ALTHOUGH THE COMPANY HAS INTRODUCED SEVERAL NEW PRODUCTS IN THE PAST TWO YEARS THEIR PERFORMANCE HAS DISAPPOINTED SOME ANALYSTS NEW PRODUCT SALES GROWTH WILL BECOME CRITICAL BY 1995 WHEN THE COMPANY'S LARGEST PRODUCT THE HEART DRUG CAPOTEN LOSES PATENT PROTECTION OUR FOCUS IS GOING TO BE IN GROWING REVENUES AND GAINING MARKET SHARE MR WEG SAID THAT WILL BE ACCOMPLISHED BY INCREASING THE COMPANY'S ATTENTION TO CUSTOMERS PHYSICIANS AND THE EMERGING MANAGED CARE AND GOVERNMENT CUSTOMERS THE CONCENTRATION ON INTERNAL ISSUES I BELIEVE HAS COME TO AN END HE SAID WE'RE NOW FOCUSED OUTWARD FOCUSED ON THE CUSTOMER FOCUSED ON THE MARKETPLACE RUNNING THE INTERNATIONAL PHARMACEUTICAL BUSINESS GAVE HIM EXPERTISE IN DEALING WITH THE EMERGENCE OF MANAGED CARE AND DIFFERENT GOVERNMENT ORGANIZATIONS MR WEG SAID I'VE SEEN HOW WE'VE BEEN ABLE TO RESPOND AND DO WELL UNDER A NUMBER OF HEALTH CARE SYSTEMS AROUND THE WORLD HE SAID WE'VE LEARNED TO DEAL WITH CHANGE THE COMPANY IS ALSO REVIEWING ITS RESEARCH OPERATIONS MR WEG SAID OUR OBJECTIVE IS TO MARKET DRUGS THAT ARE INNOVATIVE AND BRING CHANGES IN THERAPY AND VALUE TO THE HEALTH CARE SYSTEM HE SAID WE'RE VERY CONSCIOUS OF THE FACT THAT TO GET A PROPER RETURN WE HAVE TO HAVE DRUGS THAT MAKE A DIFFERENCE MY OBJECTIVE IS TO OUTPERFORM THE MARKET OVER THE NEXT FIVE YEARS HE SAID 9303040097 930304 POLITICS & POLICY ADMINISTRATION IS REPENTING AT LEISURE SOME BUDGET CUTS COMMITTED IN HASTE DAVID WESSEL AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WANTS TO SCALE BACK THE BUSH ADMINISTRATION INITIATIVE TO FORGIVE US GOVERNMENT LOANS TO CASHSTRAPPED LATIN AMERICAN NATIONS OR DOES IT PRESIDENT CLINTON'S BUDGET DOCUMENT SHOWS SAVINGS OF 278 MILLION OVER FIVE YEARS FROM SLASHING FUNDS FOR ENTERPRISE FOR THE AMERICAS DEBTREDUCTION PROGRAM BUT THE TREASURY ISN'T ACQUIESCING CAUGHT OFF GUARD BY THE PROPOSAL TREASURY OFFICIALS SAY THEY STILL ARE COMMITTED TO PROVIDING DEBT RELIEF OVER THE NEAR TERM AND ARE WORKING ON WAYS TO ACHIEVE THE FULL OBJECTIVES OF THE PROGRAM THE FLAP OVER LATIN AMERICAN DEBT RELIEF REFLECTS THE HASTE WITH WHICH THE WHITE HOUSE ASSEMBLED ITS BUDGET IN THE PAST DEPARTING PRESIDENTS PREPARED A FULL BUDGET GIVING THEIR SUCCESSORS THE LUXURY OF FOCUSING ONLY ON ITEMS THEY WANTED TO CHANGE BUT PRESIDENT BUSH DIDN'T DO SO SO THE CLINTON TEAM ASSEMBLED ITS BUDGET VERY QUICKLY WITHOUT THE USUAL EXCHANGE OF DETAILED DOCUMENTS BETWEEN THE WHITE HOUSE BUDGET OFFICE AND CABINET AGENCIES AS WELL AS THE TRADITIONAL APPEALS PROCESS AS A RESULT SOME DETAILS REMAIN IN FLUX TWO WEEKS AFTER THE PRESIDENT'S PLAN WAS RELEASED AND SOME CABINET SECRETARIES ARE STILL TRYING TO TINKER WITH IT THE DETAILED BUDGET IS EXPECTED APRIL 5 SEVERAL CABINET SECRETARIES TO SAY NOTHING OF THEIR UNDERLINGS WERE SURPRISED BY WHAT SHOWED UP IN THE FINAL DOCUMENT THE DAY IT WAS ISSUED COMMERCE SECRETARY RON BROWN'S SPOKESMAN COULDN'T EXPLAIN DISCREPANCIES BETWEEN THE SECRETARY'S FIGURES AND THOSE IN THE BUDGET THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION STILL HASN'T EXPLAINED PRECISELY WHAT'S HAPPENING TO THE SPACE STATION BUT LIKE THEM OR NOT THE SPENDING CUTS LISTED ARE GOING TO STICK INSISTS WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THE PRESIDENT HIMSELF SIGNED OFF ON EACH ONE LINE ITEMS ARE NOT SUBJECT TO APPEAL MR PANETTA SAID IN AN INTERVIEW SEVERAL CABINET OFFICIALS HAVE ASKED TO BE EXEMPTED FROM CEILINGS ON THE NUMBER OF EMPLOYEES THEY MAY HAVE ON THEIR PAYROLL BUT HE SAID HE HAS TURNED THEM ALL DOWN INTERIOR SECRETARY BRUCE BABBITT SAID HE HAD INTENSE DISCUSSIONS WITH MR PANETTA ABOUT THE BUDGET WHICH CALLS FOR REDUCED SUBSIDIES FOR THOSE WHO CUT DOWN TREES GRAZE CATTLE DRAW WATER OR MINE ON FEDERAL LANDS MR PANETTA LECTURED HIM IN A RATHER STERN MANNER ABOUT THE NEED FOR THE REVENUE MR BABBITT REPORTS I CAN LIVE WITH THE RESULTS HE SAID A LONGTIME ENVIRONMENTALIST WHO IS HARDLY AN ALLY OF THE WESTERN ECONOMIC INTERESTS AFFECTED BY THE PROPOSALS MR BABBITT SAID HE HAD HOPED HIS HONEYMOON WITH THE WEST WOULD LAST A FEW MORE WEEKS BUT HOUSING SECRETARY HENRY CISNEROS IS CLAIMING A MODEST VICTORY THE BUDGET PROPOSES TO CONSOLIDATE SEVERAL FEDERAL HOUSING PROGRAMS INCLUDING NEW PUBLIC HOUSING CONSTRUCTION AND HOUSING AID FOR THE DISABLED AND ELDERLY INTO A LOWINCOME HOUSING PROGRAM CALLED HOME BECAUSE THE HOME PROGRAM REQUIRES STATE AND LOCAL GOVERNMENTS TO PICK UP PART OF THE TAB THE CHANGE WAS TO SAVE WASHINGTON 652 MILLION OVER FIVE YEARS BUT MR CISNEROS SAID HE PROTESTED AND WON WE'VE BEEN ABLE TO SUSTAIN THE INDEPENDENCE OF THE PROGRAMS HE TOLD THE NATIONAL COUNCIL OF STATE HOUSING AGENCIES THIS WEEK WHAT ABOUT THE PROJECTED SAVINGS A SPOKESWOMAN AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROMISED TO CHECK ON THAT BUT DEPARTMENT OFFICIALS DIDN'T CALL BACK WITH THE ANSWER TRANSPORTATION SECRETARY FEDERICO PENA HAS SOMETHING TO CROW ABOUT TOO UNDER A 1990 LAW 25 CENTS OF THE 141CENTAGALLON GASOLINE TAX GOES FOR DEFICIT REDUCTION THE REST GOES INTO THE HIGHWAY TRUST FUND THAT 25CENT LEVY WAS TO EXPIRE SEPT 30 1995 MR CLINTON PROPOSED TO MAKE IT PERMANENT THE DAY THE PLAN WAS UNVEILED THE TREASURY SAID THE PRESIDENT INTENDED TO CONTINUE TO DEVOTE THE MONEY TO DEFICIT REDUCTION BUT MR PENA SAID YESTERDAY THE WHITE HOUSE BUDGET OFFICE HAS AGREED INSTEAD TO ASK CONGRESS TO PUT THE MONEY INTO THE TRUST FUND ASSURING THAT IT HAS ENOUGH MONEY TO COVER ITS COMMITMENTS TO STATES BUT ALL THIS MAY NOT MATTER MUCH IF THE MONEY MAY GO INTO THE TRUST FUND BUT ISN'T SPENT IT STILL REDUCES THE DEFICIT AND THE MOVE DOESN'T ALTER THE AMOUNT MR CLINTON PROPOSES TO SPEND ON HIGHWAYS THE TREASURY'S ENTERPRISE FOR THE AMERICAS INITIATIVE WAS AIMED AT INCREASING TRADE INVESTMENT AND DEVELOPMENT WITHIN THIS HEMISPHERE ONE FACET OF THE PROGRAM WAS TO FORGIVE SOME US GOVERNMENT LOANS TO LATIN AMERICAN GOVERNMENTS AND TO ALLOW INTEREST PAYMENTS ON THE REMAINING LOANS TO GO FOR LOCAL ENVIRONMENTAL PROGRAMS CONGRESS APPROPRIATED 90 MILLION FOR THIS LAST YEAR AND THE TREASURY REDUCED DEBT OWED THE US BY ARGENTINA CHILE COLOMBIA EL SALVADOR JAMAICA AND URUGUAY FUTURE APPROPRIATIONS WERE TO GO REDUCE DEBT OF OTHER COUNTRIES ENTER THE WHITE HOUSE BUDGET OFFICE WE WERE SCRAMBLING FOR SAVINGS ANYWHERE WE COULD LOOK PARTICULARLY IN FOREIGN AID ACCOUNTS MR PANETTA SAID LEAFING THROUGH THE CONGRESSIONAL BUDGET OFFICE'S LIST OF 239 OPTIONS FOR REDUCING THE DEFICIT SOMEONE SPOTTED THE IDEA OF CUTTING BACK ON THE DEBT FORGIVENESS I THINK TREASURY SECRETARY LLOYD BENTSEN RAISED SOME QUESTIONS MR PANETTA SAID BUT IT ENDED UP IN THE FINAL DOCUMENT NONETHELESS NOW THE TREASURY IN THE HOPES OF SALVAGING THE PROGRAM IS TRYING TO ALTER THE WAY THE BUDGET ACCOUNTS FOR DEBT RELIEF WE BELIEVE THAT WITHIN THE REVISED BUDGET ALLOTMENT IT'LL BE POSSIBLE TO CARRY OUT THE FULL OBJECTIVES OF THE PROGRAM DEPENDING ON COMPLICATED ACCOUNTING AND SCORING ISSUES WHICH ARE UNDER DISCUSSION WITH THE OFFICE OF MANAGEMENT AND BUDGET A TREASURY OFFICIAL SAID THIS IS SOMETHING THAT SHOULD BE CONTINUED SAID DAVID MULFORD WHO WAS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS IN THE BUSH ADMINISTRATION THE US HAS BEGUN TO REDUCE THE OFFICIAL DEBT OF LATIN AMERICAN GOVERNMENTS WITH GREAT BENEFIT TO ENVIRONMENTAL PROGRAMS 9303040096 930304 FINANCING BUSINESS DISCOUNT CORP OF NEW YORK DISCOUNT CORP OF NEW YORK A PRIMARY DEALER IN US GOVERNMENT SECURITIES SAID IT DECIDED TO IMMEDIATELY SUSPEND ITS DIVIDEND AS PART OF ITS CASHCONSERVING EFFORTS THE COMPANY WHICH HAS BEEN STRUGGLING TO BECOME PROFITABLE SAID THE DECISION TO ACCELERATE ITS SUSPENSION WAS NECESSARY BECAUSE IT NEEDS TO IMPROVE ITS CAPITAL POSITION PREVIOUSLY THE COMPANY HAD SAID IT INTENDED TO TERMINATE THE DIVIDEND AT YEAR END THE QUARTERLY PAYOUT HAD BEEN 10 CENTS A SHARE AFTER A SUCCESSFUL PERIOD DURING THE EARLY AND MID1980S DISCOUNT REPORTED LOSSES IN 1988 AND 1989 IT WAS PROFITABLE IN 1990 BUT AGAIN TURNED UNPROFITABLE IN THE FIRST SIX MONTHS OF 1991 9303040095 930304 BUSINESS BRIEF EASTEX ENERGY INC FIRM PLANS BIG ACQUISITION SEES POSSIBLE 1STPERIOD LOSS EASTEX ENERGY INC PLANNING TO INCREASE ITS SIZE BY ONETHIRD SAID IT WILL ACQUIRE HEATH PETRA RESOURCES INC IT ADDED THAT IT SEES A LOSS FOR THE FIRST QUARTER OR POSSIBLY BREAKEVEN RESULTS THE HOUSTONBASED NATURALGAS TRADING COMPANY SAID IT AGREED TO BUY HEATH A NORTH CAROLINABASED CLOSELYHELD NATURALGAS MERCHANT COMPANY FOR STOCK AND CASH TERMS WEREN'T DISCLOSED CONCERNING FIRSTQUARTER RESULTS EASTEX EXPLAINED THAT ITS GAS SUPPLIERS CUT OFF GAS SUPPLIES IN FEBRUARY IN A MOVE FOR HIGHER PRICES THE COMPANY RESORTED TO THE NATURALGAS SPOT MARKET BUT AT HIGHER PRICES WE DIDN'T CUT OFF OUR CUSTOMERS BUT WE GOT HURT IN THAT MONTH A SPOKESMAN SAID THE ACQUISITION SUBJECT TO A NUMBER OF CONDITIONS AND APPROVALS IS EXPECTED TO BE COMPLETED BY MARCH 30 EASTEX SAID THE PURCHASE WILL BE PAID TWOTHIRDS CASH AND THE BALANCE IN EASTEX COMMON SHARES THE COMPANY ALREADY HAS A FINANCING COMMITMENT FOR 80 OF THE CASH PORTION IT SAID 9303040094 930304 FOREIGN EXCHANGE GERMAN INTEREST RATE SPECULATION SAPS MARKET OF CONSENSUS DOLLAR ENDS MIXED BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUED TO SPECULATE YESTERDAY ON WHETHER THE GERMAN BUNDESBANK WILL CUT INTEREST RATES AT ITS MEETING TODAY AND DEALERS SAID THE LACK OF MARKET CONSENSUS LEFT THE DOLLAR MIXED THE ONLY CLEAR TREND WAS A BROADBASED RALLY IN THE YEN DEALERS SAID AS PLAYERS INCREASINGLY GIVE UP HOPE FOR A DOLLAR REBOUND AGAINST THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16458 MARKS UP FROM 16395 MARKS LATE TUESDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 11665 YEN DOWN FROM 11760 YEN STERLING WAS TRADING AT 14510 UP FROM 14490 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11675 YEN AND AT 16473 MARKS INVESTORS ARE FOCUSED ON TODAY'S MEETING OF THE BUNDESBANK'S CENTRAL BANK COUNCIL WITH THE GERMAN ECONOMY REELING AS RECESSION TAKES HOLD SOME EXPECT THE CENTRAL BANK TO CUT INTEREST RATES BUT DEALERS SAID THE SIGNALS AHEAD OF THE MEETING HAVE BEEN UNCLEAR YESTERDAY'S BUNDESBANK REPURCHASE OPERATION THROUGH WHICH THE CENTRAL BANK INFLUENCES THE INTEREST RATES BANKS PAY FOR FUNDS LEFT RATES UNCHANGED DISAPPOINTING SOME OBSERVERS WHO HAD BEEN HOPING FOR SIGNS OF EASING BUT OTHER PARTICIPANTS NOTED THE BUNDESBANK TYPICALLY CAMOUFLAGES ITS MOVES WELL AND REFUSED TO RULE OUT A CUT IN OFFICIAL INTEREST RATES AT TODAY'S MEETING ULTIMATELY DEALERS SAID SELLING PRESSURE ON THE MARK FROM CROSS TRADING PUSHED THE MARK LOWER AGAINST THE DOLLAR AS WELL STERLING ALSO EXTENDED ITS RECENT GAINS AGAINST THE MARK AS INVESTORS CONTINUED TO BUY THE POUND TO COVER EARLIER BETS IT WOULD DECLINE THE MARK ALSO SUFFERED AGAINST THE YEN AS TECHNICAL PRESSURES LIFTED THE JAPANESE CURRENCY REIGNITING CONCERNS THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS WILL SEEK A HIGHER YEN TO REDUCE JAPAN'S COLOSSAL TRADE SURPLUS DEALERS SAID THE STRONGER YEN SCENARIO IS COMING BACK TO LIFE AGAIN SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK THE YEN HAD SLIPPED EARLY THIS WEEK AFTER THE G7 MADE NO COMMENT ON THE YEN AT A MEETING OF FINANCE MINISTERS OVER THE WEEKEND BUT SPECULATIVE SELLING IN ASIAN TRADING YESTERDAY DROVE THE DOLLAR AND MARK SHARPLY LOWER DEALERS SAID MR KATO SAID JAPANESE EXPORTERS APPEARED TO GIVE UP HOPE THE DOLLAR WOULD RALLY ABOVE 118 YEN AND DECIDED TO DUMP DOLLARS HOPING TO GET THE MOST YEN THEY COULD LATER RENEWED SELLING OF MARKS FOR YEN ALL BUT ERASED A MODEST DOLLAR REBOUND AGAINST THE JAPANESE CURRENCY MR KATO SAID TECHNICAL PRESSURES PROPELLED THE MARK LOWER AFTER IT FELL BELOW 7100 YEN LATE YESTERDAY IN NEW YORK THE MARK WAS QUOTED AT 7087 YEN DOWN FROM 7179 YEN TUESDAY THE MARKET ALSO IS RELUCTANT TO PUSH THE DOLLAR SHARPLY HIGHER BEFORE TOMORROW'S REPORT ON US EMPLOYMENT IN FEBRUARY DEALERS SAID WHILE THE DOLLAR'S UPSIDE SEEMS LIMITED DEALERS SAID IT ISN'T LIKELY TO BREAK SHARPLY LOWER EITHER 9303040093 930304 IBM ENLISTS FIRMS TO HELP DISTRIBUTE ITS CHIPS MORE WIDELY ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP ACCELERATED ITS ATTEMPT TO BECOME A MAJOR SELLER OF SEMICONDUCTORS TO OTHER COMPANIES SIGNING SEVERAL INDEPENDENT DISTRIBUTORS THAT WILL PUSH ITS WARES IBM IS ONE OF THE BIGGEST SEMICONDUCTOR MAKERS IN THE WORLD BUT UNTIL RECENTLY IT USED ITS ENTIRE OUTPUT ONLY IN IBM PRODUCTS AS THE COMPUTER GIANT'S HARDWARE SALES HAVE STALLED HOWEVER IT HAS BEEN FORCED TO SEEK NEW SOURCES OF REVENUE AND WAYS TO SOAK UP EXCESS CHIPMAKING CAPACITY IBM SAID ITS SALES EFFORTS WOULD FOCUS ON VALUEADDED PRODUCTS MEANING THAT IT WILL LIKELY SHY AWAY FROM COMPETING AGAINST JAPAN'S ELECTRONICS GIANTS IN COMMODITYLIKE PRODUCTS SUCH AS DYNAMIC RANDOM ACCESS MEMORY CHIPS IBM'S NEW NATIONAL DISTRIBUTORS ARE BELL INDUSTRIES INC OF LOS ANGELES BELL MICROPRODUCTS INC OF SAN JOSE CALIF AND MARSHALL INDUSTRIES OF EL MONTE CALIF BELL INDUSTRIES AND BELL MICROPRODUCTS AREN'T RELATED IBM ALSO CHOSE SEVERAL REGIONAL MANUFACTURERS' REPRESENTATIVES FOR ITS PRODUCTS BONSERPHILHOWER SALES OF RICHARDSON TEXAS SJ ASSOCIATES OF ROCKVILLE CENTER NY NEXUS OF MOUNTAIN VIEW CALIF CENTAUR CORP OF IRVINE CALIF AND MILLBERN ASSOCIATES OF WOBURN MASS SEPARATELY IBM SAID IT WILL LICENSE TO LEYBOLD AG A CUTTINGEDGE TECHNIQUE FOR MAKING SUPERFAST SEMICONDUCTOR CIRCUITS TERMS WEREN'T DISCLOSED LEYBOLD A UNIT OF GERMANY'S DEGUSSA AG WILL USE THE LICENSE TO MAKE COMMERCIAL VERSIONS OF CHIPMAKING EQUIPMENT IT ORIGINALLY DEVELOPED FOR USE BY IBM THE TECHNOLOGY ULTRA HIGHVACUUM CHEMICAL VAPOR DEPOSITION OR UHV/CVD ALLOWS THE PRODUCTION OF CIRCUITS MADE OF VERY THIN LAYERS OF SILICON OR A SILICONGERMANIUM MIX PRODUCING SPEED NORMALLY SEEN ONLY WITH RARER MATERIALS SUCH AS GALLIUM ARSENIDE CIRCUITS MADE WITH UHV/CVD COULD BE USED IN HIGHSPEED COMMUNICATIONS EQUIPMENT AMONG OTHER APPLICATIONS AN IBM SPOKESMAN SAID LEYBOLD'S NEW EQUIPMENT LIKELY WILL COST SIGNIFICANTLY LESS THAN 1 MILLION FOR A SOPHISTICATED SETUP FAR LESS THAN RECENT ESTIMATES IN INDUSTRY JOURNALS HE SAID 9303040092 930304 INVESTORS SUE SEC OVER BAN IN PROXIES OF EMPLOYEE ISSUES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN ESCALATION OF SHAREHOLDER ACTIVISM THREE BIG STOCKHOLDERS SUED THE SECURITIES AND EXCHANGE COMMISSION CHALLENGING THE AGENCY'S DECISION TO BAR ALL EMPLOYMENTRELATED ISSUES FROM PROXY VOTES THE GROUPS THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM THE WOMEN'S DIVISION OF THE BOARD OF GLOBAL MINISTRIES OF THE UNITED METHODIST CHURCH AND BOSTONBASED UNITED STATES TRUST CO ALLEGED IN FEDERAL COURT HERE THAT THE SEC ILLEGALLY CHANGED ITS POSITION ON WHETHER TO ALLOW EMPLOYMENTRELATED PROXY STATEMENTS BY NOT GIVING THE PUBLIC A CHANCE TO COMMENT ON THE POLICY SHIFT THE SUIT STEMS FROM THE SEC'S DECISION IN JANUARY TO EXCLUDE FROM THE PROXY STATEMENT OF CRACKER BARREL OLD COUNTRY STORE INC A PROPOSAL SPONSORED BY THE NEW YORK PENSION FUND BANNING EMPLOYMENT DISCRIMINATION BASED ON SEXUAL ORIENTATION CRACKER BARREL A RESTAURANT COMPANY BASED IN LEBANON TENN BECAME EMBROILED IN CONTROVERSY IN 1991 AFTER IT FIRED ABOUT A DOZEN EMPLOYEES APPARENTLY FOR BEING HOMOSEXUAL THE NEW YORK PENSION FUND WHICH OWNS NEARLY 122000 SHARES OF THE COMPANY SOUGHT TO HAVE CRACKER BARREL DECLARE THAT IT WOULDN'T DISCRIMINATE AGAINST HOMOSEXUALS IN THE PAST EMPLOYMENTRELATED PROXY STATEMENTS HAD BEEN PUT TO A SHAREHOLDER VOTE IF BROAD SOCIAL POLICY ISSUES WERE INVOLVED BUT THE SEC INFORMED THE NEW YORK PENSION FUND THAT THE POLICY WOULD NO LONGER BE FOLLOWED AND THAT ALL EMPLOYMENTRELATED PROXY PROPOSALS WOULD BE BARRED BECAUSE THEY INVOLVE ORDINARY BUSINESS MATTERS ACCORDING TO THE LAWSUIT OTHER PROXY STATEMENTS SPONSORED BY SHAREHOLDERS BUT SHOT DOWN BY THE NEW SEC POLICY INCLUDE PROPOSALS THAT UNISYS INC AND UNITED TECHNOLOGIES CORP FOLLOW THE MACBRIDE PRINCIPLES BANNING EMPLOYMENT DISCRIMINATION IN FACTORIES IN NORTHERN IRELAND PEOPLE WHO ARE INTERESTED IN SOCIAL RESPONSIBILITY IN INVESTMENT HAVE TO CHALLENGE THIS SAID UNIVERSITY OF IOWA LAW PROFESSOR PAUL NEUHAUSER WHO IS REPRESENTING THE METHODIST CHURCH GROUP AND UNITED STATES TRUST IN THE SUIT MR NEUHAUSER PREDICTED THE SUIT HAS A 100 CHANCE OF SUCCESS IN FORCING THE SEC TO CHANGE ITS POSITION THOUGH HE SAID SUCH REVERSALS HAVE RESULTED FROM LAWSUITS ONLY THREE OR FOUR TIMES AN SEC SPOKESMAN SAID THE AGENCY WOULDN'T COMMENT ON THE LATEST SUIT 9303040091 930304 MISSOURI MAN INDICTED IN EXTORTION THREATS AGAINST PEPSICO INC NEW YORK AP A MISSOURI MAN WHO TRIED TO EXTORT 450000 FROM PEPSICO INC BY THREATENING TO TAMPER WITH GROCERY PRODUCTS AND THEN PUBLICIZING THE TAMPERING HAS BEEN INDICTED THE US ATTORNEY'S OFFICE HERE SAID DOUGLAS JOHN KNIGHT 27 OF KANSAS CITY WAS CHARGED WITH ATTEMPTED CRIMINAL EXTORTION THREATS TO TAMPER WITH CONSUMER PRODUCTS SENDING THREATS THROUGH INTERSTATE COMMERCE AND MONEY LAUNDERING SAID US ATTORNEY ROGER HAYES THERE WAS NO EVIDENCE THAT ANY TAMPERING OCCURRED KNIGHT WAS ARRESTED ON FEB 24 IN KANSAS CITY SHORTLY AFTER RECEIVING THE MONEY HE IS BEING HELD WITHOUT BAIL PENDING TRANSFER TO NEW YORK IF CONVICTED OF THE TOP COUNT OF COMMERCIAL EXTORTION KNIGHT FACES A MAXIMUM OF 250000 IN FINES AND 20 YEARS IN PRISON 9303040090 930304 CREDIT RATINGS TWO JAPANESE BANKS' DEBT RATINGS ARE CUT BY STANDARD & POOR'S SPECIAL TO THE WALL STREET JOURNAL LONDON STANDARD & POOR'S CORP DOWNGRADED DEBT RATINGS OF TWO JAPANESE BANKS AND PLACED A THIRD'S RATINGS ON CREDITWATCH CITING DETERIORATION OF ASSET QUALITY IN THE SLUGGISH ECONOMY S&P LOWERED TOKAI BANK'S LONGTERM DEBT RATING TO SINGLEAMINUS FROM SINGLEA AND ITS SHORTTERM DEBT TO A2 FROM A1 THE DOWNGRADE AFFECTS ABOUT 17 BILLION IN LONGTERM DEBT S&P DOWNGRADED THE SHORTTERM DEBT RATING OF HOKKAIDO TAKUSHOKU BANK LTD TAKUGIN TO A3 FROM A2 AND PLACED DAIWA BANK LTD'S LONGTERM SINGLEAPLUS RATINGS AND A1 SHORTTERM RATINGS ON CREDITWATCH WITH NEGATIVE IMPLICATIONS IN EACH CASE S&P SAID THE BANKS' ASSET QUALITY IS DETERIORATING DUE IN PART TO BALLOONING PROBLEM LOANS LINKED TO JAPAN'S STAGNANT REAL ESTATE MARKET AND WIDESPREAD ECONOMIC SLOWDOWN S&P SAID THE BANKS HAVE GREATER EXPOSURE THAN THEIR PEERS WHICH COULD HAVE A PROFOUND EFFECT ON THEIR FUTURE EARNINGS AND CAPITALIZATION 9303040089 930304 LETTERS TO THE EDITOR CORONARY ANGIOPLASTY ISN'T SURGICAL PROCEDURE YOUR FEB 8 WORLD WIRE ITEM HONG KONG REFORMS ENDORSED REPORTED THAT HONG KONG'S GOV CHRIS PATTEN WAS RELEASED FROM A HOSPITAL FOLLOWING SURGERY TO REPAIR CORONARY ARTERIES AND MAY RETURN TO WORK IN ABOUT A WEEK I BELIEVE GOV PATTEN'S THERAPEUTIC PROCEDURE FOR HIS CORONARY ARTERY DISEASE WAS PERCUTANEOUS TRANSLUMINAL CORONARY ANGIOPLASTY A NONSURGICAL PROCEDURE TO DILATE NARROWED CORONARY ARTERIES BY A BALLOON CATHETER THE PRECEDING DAY WE HAVE NOT YET REACHED THE STAGE IN MEDICAL TECHNOLOGY THAT WOULD PERMIT A PATIENT WHO HAS HAD A CORONARY ARTERY BYPASS OPERATION TO RETURN TO WORK A WEEK AFTER HOSPITAL DISCHARGE PATIENTS WHO HAVE HAD BALLOON ANGIOPLASTY ON THE OTHER HAND MAY CERTAINLY RETURN TO WORK THE FOLLOWING DAY 9303040088 930304 BUSINESS BRIEF NATIONSBANK SMALL BUSINESSES TO RECEIVE LOANS FROM NEW SUBSIDIARY NATIONSBANK SAID IT FORMED A NEW LENDING SUBSIDIARY BUSINESS BANKING THAT IT EXPECTS WILL LOAN MORE THAN 1 BILLION TO SMALL BUSINESSES THROUGH 1996 BUSINESS BANKING WILL MAKE LOANS OF AS MUCH AS 500000 TO SMALL BUSINESSES WITH ANNUAL REVENUE OF 4 MILLION OR LESS THE COMPANY SAID NATIONSBANK BASED IN CHARLOTTE NC ESTIMATED THAT 12 MILLION BUSINESSES WILL BE ELIGIBLE FOR THE LOANS IN INITIAL TARGET MARKETS IN ABOUT 30 CITIES IN THE SOUTHEAST AND IN TEXAS THE BANK HOLDING COMPANY SAID THE BUSINESS BANKING PROGRAM FOLLOWS A PILOT PROJECT IN TEXAS LAST YEAR IN 1992 NATIONSBANK SAID IT LOANED 577 MILLION TO SMALL BUSINESSES IN SEVERAL TEXAS CITIES THE AVERAGE LOAN WAS ABOUT 53500 9303040087 930304 USE OF ELECTRONIC DEVICES BY FLIERS MAY FACE BAN MONTREAL REUTER AN INTERNATIONAL AGENCY IS CONSIDERING A PARTIAL BAN ON USING COMPUTER GAMES LIKE NINTENDO AND WALKMAN STEREOS ABOARD AIRCRAFT SAYING COMPUTER GAMES MAY INTERFERE WITH RADIO TRAFFIC AND STEREOS MAY DISTRACT PASSENGERS THE SAFETY ADVISORY COMMITTEE OF THE INTERNATIONAL AIR TRANSPORT AGENCY WROTE A CONFIDENTIAL LETTER IN FEBRUARY TO ITS MEMBERS RECOMMENDING A BAN ON ELECTRONIC DEVICES AT CERTAIN TIMES PART OF THE BAN WOULD INCLUDE LIMITING USE OF WALKMANTYPE STEREOS BECAUSE IT MIGHT PREVENT PASSENGERS FROM HEARING SAFETY ADVISORIES ACCORDING TO THE LETTER THE COMMITTEE CALLS FOR A BAN ON THE USE OF ALL PASSENGERCARRIED ELECTRONIC DEVICES DURING TAXI TAKEOFF INITIAL CLIMB APPROACH AND LANDING MCDONNELL DOUGLAS AIRCRAFT DIVISION PUT OUT AN ALERT AT THE END OF LAST YEAR WARNING ITS CUSTOMERS THAT SOME DEVICES SUCH AS COMPUTER GAMES LAPTOP COMPUTERS OR PORTABLE COMPACT DISC PLAYERS COULD CONFLICT WITH RADIO TRANMISSIONS IN THE AIRCRAFT AND SHOULD NOT BE ALLOWED DURING TAKEOFF AND LANDING AN IATA SPOKESMAN SAID THE LETTER WAS SENT TO MEMBERS AND STILL AWAITS DISCUSSION BY IATA'S TECHNICAL COMMITTEE WHICH IS DUE TO MEET IN APRIL 9303040086 930304 BUSINESS BRIEF U S WEST INC COMPANY POLICE TO OFFER AN ANTICRIME FAX SERVICE U S WEST INC AND DENVER AREA POLICE AGENCIES HAVE TEAMED UP TO OFFER BUSINESS CUSTOMERS A FACSIMILE SERVICE DESIGNED TO FOIL CRIMINALS BUSINESSES THAT SUBSCRIBE TO THE SERVICE CALLED ROCKY MOUNTAIN BUSINESS WATCH RECEIVE CRIMEALERT BULLETINS AND COMPOSITE PICTURES OF SUSPECTS FAXED BY LAW ENFORCEMENT AGENCIES FOR AN ANNUAL FEE OF 100 STORE OWNERS AND OTHER BUSINESSES CAN BE NOTIFIED ABOUT PEOPLE SUSPECTED OF PASSING BAD CHECKS SHOPLIFTING OR ENGAGED IN CREDITCARD FRAUD OR OTHER CRIMES DURING A RECENT 90DAY TEST OF THE SERVICE MORE THAN 3000 CRIMEALERT BULLETINS WERE DISTRIBUTED TO 13 POLICE AGENCIES AND MORE THAN 250 RETAILERS U S WEST SAID IF THE SERVICE PROVES POPULAR IN DENVER U S WEST AN ENGLEWOOD COLO TELECOMMUNICATIONS COMPANY PLANS TO ROLL IT OUT IN OTHER CITIES IN ITS 14STATE TERRITORY LATER THIS YEAR 9303040085 930304 INTERNATIONAL SWISS PARLIAMENT REJECTS FEMALE COUNCIL CANDIDATE BERN SWITZERLAND THE SWISS PARLIAMENT FAILED TO ELECT A WOMAN TO THE ALLMALE FEDERAL COUNCIL THAT GOVERNS SWITZERLAND SPARKING ANGER FROM FEMINISTS AND CREATING A SMALL CRISIS IN THE REPUBLIC MEMBERS OF PARLIAMENT REJECTED TRADE UNION LEADER CHRISTIANE BRUNNER 46 YEARS OLD THE SOCIAL DEMOCRATIC PARTY'S OFFICIAL CANDIDATE FOR ITS SEAT ON THE COUNCIL MS BRUNNER IS AN OUTSPOKEN FEMINIST AN ABORTION RIGHTS ADVOCATE AND A CRITIC OF THE SWISS ARMY THIS IS A MAJOR DEFEAT FOR WOMEN EXCLAIMED CHRISTIAN DEMOCRAT JUDITH STAMM WHEN WE TRY TO ELECT A WOMAN THE EXCUSE IS YES' TO A WOMAN BUT NOT THIS WOMAN MS BRUNNER DIDN'T FIT THE PATRIARCHAL IMAGE OF THE IDEAL WOMAN ADDED SOCIAL DEMOCRAT BARBARA HAERINGBINDER INSTEAD OF MS BRUNNER MEMBERS OF PARLIAMENT VOTED FOR THE UNDECLARED SOCIAL DEMOCRAT FRANCIS MATTHEY THE CANTONAL GOVERNMENT FINANCE MINISTER BUT IN A SURPRISE MOVE MR MATTHEY REFUSED TO ACCEPT THE NOMINATION WITHOUT HIS PARTY'S APPROVAL AND THE SOCIAL DEMOCRATS ANGERED THAT THEIR CHOSEN CANDIDATE WAS REJECTED REQUESTED TIME TO RETHINK THEIR POSITION IN THE COALITION GOVERNMENT PARLIAMENT AGREED TO GIVE MR MATTHEY UNTIL MARCH 10 TO REPLY 9303040084 930304 BALTIMORE BANCORP'S HALE OWES 18 MILLION TO US IRS ALLEGES BALTIMORE THE INTERNAL REVENUE SERVICE IS SEEKING NEARLY 18 MILLION IN BACK TAXES INTEREST AND PENALTIES FROM BALTIMORE BANCORP CHAIRMAN EDWIN F HALE SR FOR TAXES RELATED TO HIS SHIPPING AND TRUCKING INTERESTS THE DISPUTE DOESN'T INVOLVE MR HALE'S POSITION AT THE BANK HOLDING COMPANY WHERE HE BECAME CHAIRMAN LAST YEAR AFTER LEADING A SUCCESSFUL FIGHT BY DISSIDENTS TO TAKE CONTROL OF THE AILING COMPANY NEITHER MR HALE NOR HIS ATTORNEY RETURNED TELEPHONE CALLS SEEKING COMMENT AN IRS SPOKESMAN CONFIRMED THAT FOR THE THREE YEARS ENDED IN 1990 THE IRS CLAIMS MR HALE OWED NEARLY 12 MILLION IN TAXES ON UNDERSTATED INCOME RELATED TO HIS TRUCKING AND SHIPPING COMPANIES INCLUDING PORT EAST TRANSFER INC ATLANTIC NORTH STAR INC AND THE BALTIMORE PORT TRUCK PLAZA PENALTIES AND INTEREST ADD ANOTHER 633800 TO THE BILL CLAIMED BY THE IRS SEPARATELY CHARLES H WHITTUM JR WHO EMERGED FROM RETIREMENT TO HELP MR HALE IN HIS FIGHT SAID LAST WEEK HE WILL RESIGN AS A DIRECTOR AHEAD OF THE SCHEDULED MAY 1994 EXPIRATION OF HIS BOARD TERM MR WHITTUM SAID IN AN INTERVIEW THAT HE KNOWS NOTHING OF MR HALE'S TAX DISPUTE AND HIS DECISION WAS UNRELATED TO THE IRS ALLEGATIONS WHICH SURFACED LAST WEEK IN THE BALTIMORE BUSINESS JOURNAL MR WHITTUM WHO HAD RESIGNED AS SCHEDULED IN SEPTEMBER AS CHIEF EXECUTIVE OF THE BANK SAID HIS RESIGNATION FOLLOWED A DISAGREEMENT WITH ONE OF THE BOARD'S COMMITTEES BUT DECLINED TO ELABORATE I REALLY FELT I HAD CONTRIBUTED AS MUCH AS I WAS GOING TO HE SAID NOTING THAT THE BANK HAD REORGANIZED AND BECOME PROFITABLE SINCE THE DISSIDENT GROUP WON CONTROL BUT THEY STILL HAVE A LONG WAY TO GO HE SAID NOTING THAT THE BANK IS STILL SADDLED WITH NONPERFORMING COMMERCIAL REALESTATE LOANS 9303040083 930304 BUSINESS BRIEF CAMBRIDGE BIOTECH CORP FIRM TO POST QUARTERLY LOSS CITES DELAYS IN AGREEMENTS CAMBRIDGE BIOTECH CORP CITING DELAYS IN COMPLETING AGREEMENTS WITH CLIENTS THAT CAUSED A DELAY IN REVENUE SAID IT WILL REPORT A SUBSTANTIAL LOSS FOR THE FOURTH QUARTER FOR THE QUARTER ENDED DEC 31 1991 THE VACCINE CONCERN HAD NET INCOME OF 19 MILLION OR NINE CENTS A SHARE ON REVENUE OF 88 MILLION INCLUDED IN NET INCOME WAS A 14 MILLION GAIN FROM SALE OF ASSETS THE WORCESTER MASS COMPANY NOTED THAT WITH A RESTRUCTURING CHARGE TAKEN IN THE LATEST THIRD QUARTER AS WELL AS THE ANTICIPATED LOSS FOR THE FOURTH QUARTER IT WILL HAVE A LOSS FOR THE YEAR A SPOKESMAN DECLINED TO QUANTIFY THE LOSSES FOR THE QUARTER OR YEAR A YEAR EARLIER THE COMPANY EARNED 348000 OR TWO CENTS A SHARE ON SALES OF 29 MILLION RESULTS INCLUDED THE GAIN FROM THE SALE OF ASSETS TAKEN IN THE FOURTH QUARTER 9303040082 930304 EXTRAORDINARY ITEMS LIFTED WABAN'S PROFIT IN FISCAL 4TH PERIOD NATICK MASS WABAN INC POSTED A 33 INCREASE IN NET INCOME FOR THE FOURTH QUARTER ENDED JAN 31 BUT EARNINGS WOULD HAVE DECLINED WITHOUT EXTRAORDINARY ITEMS THE RETAILER REPORTED AN UNEXPECTED 63 DECLINE IN SAMESTORE FEBRUARY SALES NET WAS 141 MILLION OR 42 CENTS A SHARE AFTER A ONETIME GAIN OF 23 MILLION COMPARED WITH 106 MILLION OR 33 CENTS A SHARE AFTER A ONETIME CHARGE OF 21 MILLION IN THE YEAREARLIER PERIOD SALES ROSE 27 TO 9376 MILLION FROM 7365 MILLION BUT SAMESTORE SALES SALES OF STORES OPEN MORE THAN A YEAR INCREASED ONLY SLIGHTLY WABAN ATTRIBUTED THE DECLINE IN EARNINGS TO LOWER OPERATING PROFIT AT ITS HOMEBASE STORES PARTLY BECAUSE OF HIGHER PREOPENING EXPENSES AT SOME STORES AND THREE WEEKS OF SEVERE JANUARY WEATHER IN WEST COAST MARKETS AS WELL AS HIGHER CORPORATE INTEREST EXPENSE AFTER FALLING SHARPLY EARLY YESTERDAY WABAN'S SHARES WERE QUOTED AT 1325 A SHARE DOWN 375 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING WABAN WHICH ALSO OPERATES BJ'S WHOLESALE CLUB STORES SAID FEBRUARY SALES WERE ALSO HURT BY CONTINUING SEVERE WEATHER ON THE WEST COAST AND IN THE NORTHEAST AND A WEAK CALIFORNIA ECONOMY 9303040081 930304 BUSINESS BRIEF WOOLWORTH REPORTS 165 MILLION PROFIT FOR FISCAL 4TH QUARTER NEW YORK WOOLWORTH CORP SAID IT SWUNG TO A FISCAL FOURTHQUARTER PROFIT FROM A LOSS IN THE YEAREARLIER QUARTER THAT WAS LARGELY DUE TO A RESTRUCTURING CHARGE RESULTS WERE IN LINE WITH ANALYSTS' ESTIMATES THE RETAILER POSTED NET INCOME OF 165 MILLION OR 126 A SHARE FOR THE 14WEEK PERIOD ENDED JAN 30 COMPARED WITH A YEARAGO NET LOSS OF 128 MILLION OR 98 CENTS A SHARE THE YEARAGO LOSS REFLECTED AN AFTERTAX RESTRUCTURING CHARGE OF 250 MILLION OR 192 A SHARE A RESULT OF AN ACCELERATED STORE REDEPLOYMENT PROGRAM IN JANUARY 1992 WOOLWORTH SAID IT WOULD CLOSE SELL OR CONVERT ABOUT 900 OF ITS 5200 US SPECIALTY STORES REVENUE WAS FLAT AT 314 BILLION THE COMPANY SAID THAT WHILE REVENUE FOR THE LATEST YEAR WAS NEGATIVELY AFFECTED BY CLOSING CERTAIN STORES OPERATING PROFIT IMPROVED SPECIALTY STORE REVENUE IN THE QUARTER INCREASED 15 WHILE GENERAL MERCHANDISE REVENUE DECREASED 13 FOR THE 53WEEK FISCAL YEAR WOOLWORTH POSTED NET OF 280 MILLION OR 214 A SHARE COMPARED WITH A YEARAGO LOSS OF 166 MILLION OR 128 A SHARE IN ADDITION TO THE RESTRUCTURING CHARGE YEARAGO RESULTS INCLUDED AN AFTER TAX CHARGE OF 113 MILLION OR 87 CENTS A SHARE REFLECTING AN ACCOUNTING CHANGE FOR RETIREE BENEFITS REVENUE ROSE SLIGHTLY TO 996 BILLION 9303040079 930304 PROVISION ON PENALTIES IN ENVIRONMENT CASES IS REVERSED IN TEXAS AUSTIN TEXAS THE TEXAS SUPREME COURT STRUCK DOWN AS UNCONSTITUTIONAL A PROVISION IN THE STATE'S ENVIRONMENTAL REGULATIONS THAT REQUIRES VIOLATORS TO PREPAY PENALTIES IN ORDER TO HAVE THEIR CASES REVIEWED IN COURT IN A 53 DECISION THAT REVERSED A TRIAL COURT RULING THE STATE'S HIGHEST COURT RULED THAT THE PROVISION IS AN UNREASONABLE RESTRICTION ON ACCESS TO THE COURTS IN A 51PAGE DISSENTING OPINION HOWEVER JUSTICE LLOYD DOGGETT ARGUED THAT THE RULING IS A SETBACK FOR ENVIRONMENTAL PROTECTION CALLING IT A STANDING INVITATION TO THOSE WHO WOULD HARM OUR ENVIRONMENT TO ACT WITHOUT FEAR OF CITIZEN CHALLENGE BUT THE TEXAS AIR CONTROL BOARD AND THE TEXAS WATER COMMISSION THE STATE'S ENVIRONMENTAL WATCHDOGS SAID THAT PREPAYMENT OF PENALTIES IS RARELY AN ISSUE BECAUSE NEARLY ALL OF THEIR ENFORCEMENT ACTIONS TAKE PLACE UNDER AGREED ORDERS THAT VIOLATORS DON'T APPEAL 9303040078 930304 INTERNATIONAL BRIEF INVESTOR AB PRETAX PROFIT DECLINED 32 IN 1992 PRELIMINARY RESULTS INVESTOR AB THE KEY SWEDISH HOLDING COMPANY IN THE WALLENBERG FAMILY'S FINANCIAL EMPIRE POSTED LOWER PRETAX PROFIT IN ITS 1992 PRELIMINARY EARNINGS REPORT INVESTOR'S PRETAX PROFIT AFTER FINANCIAL ITEMS FELL 32 TO 148 BILLION KRONOR 1917 MILLION IN 1992 FROM 217 BILLION KRONOR IN 1991 YEAREARLIER FIGURES ARE PRO FORMA DUE TO INVESTOR'S MERGER WITH SISTER COMPANY FOERVALTNINGS AB PROVIDENTIA IN JANUARY 1991 AT THE CLOSE OF TRADING YESTERDAY INVESTOR B SHARES WERE DOWN 1 KRONOR TO 137 KRONOR THE EARNINGS REPORT HAD LARGELY BEEN IN LINE WITH EXPECTATIONS SAID DEALERS INVESTOR KEPT ITS DIVIDEND UNCHANGED FROM A YEAR EARLIER AT 525 KRONOR THE GROUP IS DIVIDED INTO TWO AREAS INDUSTRIAL HOLDINGS WHICH COMPRISE ITS PORTFOLIO OF STRATEGIC AND OTHER HOLDINGS AND THE OPERATIONS OF ITS WHOLLY OWNED SUBSIDIARY AUTOMOTIVE AND AEROSPACE GROUP SAABSCANIA AB SAAB AUTOMOBILE AB IS JOINTLY OWNED BY SAABSCANIA AND GENERAL MOTORS CORP OF THE US 9303040077 930304 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/4 HIGH 3 1/8 LOW 3 1/2 NEAR CLOSING BID 3 5/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 308 60 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 315 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 267 THREE MONTHS 279 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 310 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 302 90 DAYS 304 120 DAYS 306 150 DAYS 307 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 650 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 709 60 DAYS 720 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 713 60 DAYS 723 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303040076 930304 BUSINESS BRIEF TJX COS FOURTHPERIOD PROFIT POSTED AFTER '91 LOSS SALES JUMP TJX COS POWERED BY A 25 JUMP IN SALES POSTED NET INCOME IN ITS FOURTH QUARTER ENDED JAN 30 COMPARED WITH A YEAREARLIER LOSS PROFIT WAS 294 MILLION OR 38 CENTS A SHARE THE YEAREARLIER LOSS OF 36 MILLION OR 51 CENTS A SHARE WAS CAUSED BY A 50 MILLION CHARGE FOR DISCONTINUED OPERATIONS EVEN WITHOUT THE CHARGE PROFIT IN THE LATEST QUARTER WAS MORE THAN DOUBLE THE YEAREARLIER LEVEL SALES ROSE TO 9976 MILLION FROM 7997 MILLION THE MOST RECENT QUARTER INCLUDED 14 WEEKS ONE MORE THAN INCLUDED IN THE PRIOR YEAR'S RESULTS THE FRAMINGHAM MASS OFFPRICE CLOTHING RETAILER SAID THAT AT ITS TJ MAXX UNIT SALES ROSE 16 IN THE FISCAL YEAR WITH COMPARABLESTORE SALES GROWTH IN ALL NATIONAL REGIONS IT SAID ITS HIT OR MISS UNIT'S OPERATING LOSS SHRANK CONSIDERABLY FROM THE PRIOR YEAR AND THE UNIT WAS PROFITABLE IN THE SECOND HALF FOR THE YEAR SALES AT THE CHADWICK'S UNIT ROSE 68 9303040075 930304 COUNTERPOINT FOREIGN STEELMAKERS TWIST THE MARKET BY THOMAS J USHER FOR YEARS THIS NEWSPAPER'S EDITORIAL WRITERS AND OTHER CRITICS OF AMERICA'S STEEL INDUSTRY HAVE LAMBASTED THE NOTION THAT OUR GOVERNMENT SHOULD ENFORCE EXISTING TRADE LAWS AGAINST FOREIGN SUBSIDY AND DUMPING ABUSES CRITICS CALL THIS PROTECTIONISM AND SAY SUCH MEASURES WILL NOT SAVE STEELMAKERS FROM THEIR OWN POOR PERFORMANCE THIS CRITICISM IS INACCURATE ON TWO COUNTS FIRST AMERICA'S COUNTERVAILING DUTY AND ANTIDUMPING LAWS ARE NOT INHERENTLY PROTECTIONIST THE GENERAL AGREEMENT ON TARIFFS AND TRADE HAS RECOGNIZED OUR LAWS FOR HALF A CENTURY AS APPROPRIATE REMEDIES FOR MARKET DISTORTIONS CREATED BY FOREIGN SUBSIDIES AND DUMPING SECOND WHILE COMPLAINTS ABOUT THE STEEL INDUSTRY'S COMPETITIVE PERFORMANCE MAY HAVE BEEN VALID A DECADE AGO THE STORY TODAY IS VASTLY DIFFERENT SINCE 1980 DOMESTIC STEELMAKERS HAVE INVESTED 30 BILLION IN MODERN TECHNOLOGY AND EQUIPMENT WE HAVE REDUCED EXCESS CAPACITY AND DOUBLED PRODUCTIVITY BY CLOSING MORE THAN 450 FACILITIES NATIONWIDE THE QUALITY OF OUR PRODUCTS HAS IMPROVED DRAMATICALLY AS DOMESTIC REJECT RATES AT AUTO STAMPING PLANTS HAVE FALLEN FROM 8 IN 1980 TO LESS THAN 1 IN 1991 AMERICA'S STEELMAKERS ARE NOW THE LOWCOST PRODUCERS FOR THE US MARKET AND OUR NATION IS ACTUALLY A MORE EFFICIENT STEEL PRODUCER THAN GERMANY AND JAPAN DESPITE THIS SUCCESS ONE KEY FACTOR HAS NOT CHANGED FOREIGN PRODUCERS ARE STILL MASSIVELY DISTORTING THE DOMESTIC MARKET AND GOOD STEEL JOBS IN PITTSBURGH GARY AND OTHER AREAS OF THE US ARE BEING SACRIFICED FOR JOBS OVERSEAS RECENT RULINGS BY THE COMMERCE DEPARTMENT DOCUMENT HOW MANY NATIONS HAVE CONTINUED TO SHIP SUBSIDIZED AND/OR DUMPED STEEL TO THE US AT UNFAIR PRICES AS DEFINED BY GATT RULES AND US LAW PRELIMINARY OFFSETTING DUTIES DESIGNED TO RESTORE MARKETBASED COMPETITION WERE IMPOSED AS A RESULT TODAY THE US INTERNATIONAL TRADE COMMISSION WILL DECIDE WHETHER SUCH DUTIES AGAINST BAR STEEL IMPORTS SHOULD REMAIN IN EFFECT DUE TO INJURY SUFFERED BY US PRODUCERS A FINAL INJURY RULING ON THE EXTENSIVE FLATROLLED CASES IS SET FOR EARLY SUMMER THE STEEL CASES HAVE PROMPTED CRIES OF US PROTECTIONISM FROM FOREIGN GOVERNMENTS SEEKING TO PRESSURE PRESIDENT CLINTON BUT THE STEPS BEING TAKEN ARE ACTUALLY THE US RESPONSE TO YEARS OF DISRUPTIVE FOREIGN TRADE POLICIES INITIATED LAST YEAR THE CASES GREW OUT OF THE BUSH ADMINISTRATION'S DECISION NOT TO RENEW VOLUNTARY RESTRAINT AGREEMENTS THAT HAD GOVERNED US STEEL POLICY SINCE 1984 INSTEAD OF VRA QUOTAS PRESIDENT BUSH SAID THE US WOULD RESUME FULL ENFORCEMENT OF THE REGULAR TRADE LAWS AGAINST STEEL SUBSIDIES AND DUMPING US PRODUCERS SUPPORTED THIS POLICY SHIFT BECAUSE THE EVIDENCE CLEARLY SHOWS THAT SPECIAL STEEL ARRANGEMENTS IN PLACE SINCE THE 1970S VRAS TRIGGERPRICE MECHANISMS HAVE FAILED TO ADDRESS THE UNDERLYING CAUSES OF TRADE DISTORTION WHILE THE TOTAL VOLUME OF FOREIGN STEEL SUBSIDIES WILL PROBABLY NEVER BE KNOWN IT HAS EASILY EXCEEDED 100 BILLION SINCE 1980 EVEN THOUGH WORLD DEMAND FOR STEEL HAS STEADILY DECLINED FOR EXAMPLE THE TWO STATEOWNED STEEL FIRMS IN FRANCE USINOR AND SACILOR SUFFERED AN UNBROKEN SUCCESSION OF LOSSES FOR 12 CONSECUTIVE YEARS ENDING IN 1987 DESPITE THIS DISASTROUS RECORD THE FIRMS HAVE GONE ON A BUYING SPREE AROUND THE WORLD ALL THANKS TO SUBSIDIES ESTIMATED AT 16 BILLION SINCE THE MID1970S IN ITALY THE STATE STEEL SECTOR LOST MORE MONEY THAN IT WAS WORTH ON AVERAGE EVERY 18 MONTHS FOR 15 STRAIGHT YEARS BETWEEN 1975 AND 1991 IT HAS RECEIVED ABOUT 20 BILLION IN SUBSIDIES SINCE 1980 BRITISH STEEL THE LARGEST LOSSMAKING COMPANY IN THE HISTORY OF THE UNITED KINGDOM RECEIVED SUBSIDIES ESTIMATED AT 15 BILLION BETWEEN 1976 AND 1988 SIMILAR SCENARIOS HAVE PLAYED OUT IN MANY OTHER COUNTRIES AS COLLAPSING FIRMS WERE BAILED OUT WITH BILLIONS IN SURVIVAL SUBSIDIES NO RESPONSIBLE LENDER OR PRIVATE INVESTOR WOULD EVER COMMIT ANY FUNDS ON ANY TERMS TO MOST OF THESE ENTERPRISES MANY FOREIGN STEELMAKERS WHO MAY NOT RECEIVE SUBSIDIES NONETHELESS BENEFIT FROM CARTEL ARRANGEMENTS THAT GIVE RISE TO DUMPING SELLING STEEL ABROAD FOR LESS THAN IT COSTS AT HOME OR FOR LESS THAN IT COSTS TO MAKE BY SELLING HIGHPRICED STEEL IN PROTECTED HOME MARKETS AND AT LOWER PRICES OVERSEAS FOREIGN PRODUCERS CAN LOWER THEIR OVERALL FIXED COSTS AND KEEP THEIR MILLS RUNNING AT FULL CAPACITY THE CUMULATIVE EFFECT OF THESE PRACTICES HAS BEEN TO SHIFT THE BURDEN OF ADJUSTING TO WORLD OVERCAPACITY FROM SUBSIDIZED AND CARTELIZED FOREIGN INDUSTRIES ONTO THE US INDUSTRY WHERE PRODUCTION AND INVESTMENT ARE DETERMINED SOLELY BY THE MARKET AND WHERE CARTELS ARE ILLEGAL INDEED FOREIGN STEELMAKERS KNOW THAT THE BEST PLACE TO DEPOSIT THEIR EXCESS PRODUCTION IS THE US THE LARGEST OPEN STEEL MARKET IN THE WORLD SIGNIFICANT IMPORT PENETRATION PERSISTS DESPITE THE WEAKER DOLLAR AND RELATIVELY LOW DOMESTIC STEEL PRICES THE BOTTOM LINE IS THAT ECONOMIC LOGIC AND THE FREE MARKET HAVE NOT PREVAILED IN THE TRADE OF STEEL AND US PRODUCERS ARE LOSING SUBSTANTIAL REVENUE TO IMPORTS THAT COULD NOT COMPETE HERE ON THE SAME TERMS ON WHICH OUR OWN MILLS MUST COMPETE RATHER THAN ACKNOWLEDGE THESE FACTS CRITICS SAY CONSUMERS BENEFIT FROM BUYING DUMPED GOODS PRESUMABLY CONSUMERS WOULD ALSO BENEFIT FROM PURCHASING SMUGGLED OR STOLEN GOODS BUT SUCH PRACTICES LIKE DUMPING VIOLATE THE RULES OF FAIR TRADE AND LEAD INEXORABLY TO THE DESTRUCTION OF OUR NATION'S MANUFACTURING BASE MOREOVER CONSUMERS ULTIMATELY RECEIVE THE GREATEST BENEFIT FROM A FREE AND FAIR MARKET THAT REWARDS THE MOST EFFICIENT COMPETITOR IN THIS CASE THE US STEEL INDUSTRY IN THE US MARKET CRITICS ALSO CHARGE THAT THE US TRADE LAWS ARE STACKED AGAINST FOREIGN PRODUCERS EVEN THOUGH THE STEEL CASES ARE BEING ADMINISTERED ACCORDING TO INTERNATIONAL GUIDELINES IF AS THE EUROPEANS CONTEND OUR ANTIDUMPING LAW IS SO UNFAIR WHY IS THE EC NOW INVOKING ITS OWN STATUTE AGAINST EAST EUROPEAN STEELMAKERS FINALLY SINCE THE COMMERCE DECISIONS WERE ANNOUNCED FOREIGN STEEL EXECUTIVES HAVE PUBLICLY DISCUSSED THE NEED TO CONFRONT STRUCTURAL OVERCAPACITY SOME EVEN ADMIT PRIVATELY THAT STEEL SUBSIDIES MUST END THE DIFFICULTY THEY SAY LIES IN MUSTERING THE POLITICAL WILL TO DO IT THE US RESPONSE TO THAT ONE IS EASY THE ONLY ACCEPTABLE BASIS FOR THE FREE EXCHANGE OF GOODS ACROSS BORDERS IS THAT NATIONS DO NOT EXPORT THEIR UNEMPLOYMENT NOW THAT AMERICAN PRODUCERS AND AMERICAN WORKERS HAVE ABSORBED THE PAINFUL REALITIES OF THE FREE MARKET IT'S TIME FOR OTHER STEEL INDUSTRIES TO DO THE SAME IT'S TIME FOR THE US TO INSIST THAT COST QUALITY AND OTHER COMPETITIVE FACTORS DETERMINE THE MARKET FOR STEEL NOT THE INJURIOUS TRADE PRACTICES OF FOREIGN PRODUCERS MR USHER IS PRESIDENT OF US STEEL GROUP A UNIT OF USX CORP 9303040074 930304 LETTERS TO THE EDITOR GOOD QUESTION I HOPE NONE OF THE STOCKHOLDERS OF RJ REYNOLDS OR RJR NABISCO HOLDINGS MISSED THE COMPANY SPOKESWOMAN'S STATEMENT THAT THERE WAS NO INDICATION THAT LIKING AN AD LEADS TO THE USE OF A PRODUCT NEWS ARTICLE FEB 5 HOW DOES THE COMPANY JUSTIFY ITS ADVERTISING BUDGET 9303040073 930304 TECHNOLOGY & HEALTH BELL ATLANTIC PICKS NEWER TECHNOLOGY IN CELLULAR RIVALRY BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL BELL ATLANTIC CORP'S CELLULAR TELEPHONE UNIT PICKED SIDES IN THE CELLULAR INDUSTRY'S DEBATE ON WHICH DIGITAL TECHNOLOGY TO USE AGREEING TO BUY EQUIPMENT THAT USES THE CODE DIVISION MULTIPLE ACCESS TECHNOLOGY BELL ATLANTIC BECOMES THE THIRD OF THE SEVEN REGIONAL BELL PHONE COMPANIES TO CHOOSE CDMA THE NEWER RIVAL TO TIME DIVISION MULTIPLE ACCESS TECHNOLOGY ONLY ONE REGIONAL BELL COMPANY SOUTHWESTERN BELL CORP HAS CHOSEN TDMA AN EARLIER TECHNOLOGY FOR WHICH EQUIPMENT IS CURRENTLY AVAILABLE THE TECHNOLOGIES DIGITIALLY ENCODE TRANSMISSION SIGNALS IN DIFFERENT WAYS FOR ITS FIRST INSTALLATION OF THE DIGITAL TECHNOLOGY BELL ATLANTIC MOBILE SYSTEMS PLANS TO BUY EQUIPMENT AND SOFTWARE FROM MOTOROLA NORTEL COMMUNICATIONS CO A JOINT VENTURE OF MOTOROLA INC AND NORTHERN TELECOM LTD THE COMPANY SAID THAT A NEW DIGITAL CELLULAR SWITCH AND ABOUT FIVE CELL SITES WILL BE INSTALLED EARLY NEXT YEAR IN BELL ATLANTIC MOBILE'S NORTHEAST MARKET COVERING CONNECTICUT RHODE ISLAND AND MASSACHUSETTS THE EXACT LOCATION HAS YET TO BE SELECTED THE COMPANY SAID A BELL ATLANTIC SPOKESMAN SAID THAT THE COMPANY EXPECTS TO BEGIN DEPLOYING CDMA TECHNOLOGY IN ITS MIDATLANTIC MARKET DURING THE FIRST PART OF 1995 BUT THAT MAY DEPEND ON WHETHER AMERICAN TELEPHONE & TELEGRAPH CO COMES UP WITH EQUIPMENT THAT USES THE CDMA TECHNOLOGY BELL ATLANTIC'S CELLULAR MARKETS IN THE MIDATLANTIC CURRENTLY USE AT&T EQUIPMENT UNLIKE ITS NORTHEAST NETWORK AND OTHER CELLULAR PROPERTIES IT ACQUIRED LAST YEAR WHICH USE MOTOROLA EQUIPMENT AS CELLULAR COMPANIES FACE CAPACITY PROBLEMS AND DEMANDS FOR NEW WIRELESS SERVICES THEY WILL BE SPENDING BILLIONS OF DOLLARS OVER THE NEXT SEVERAL YEARS TO UPDATE THEIR NETWORKS TO TRANSMIT SIGNALS DIGITALLY RATHER THAN WITH THE CURRENT ANALOG SIGNAL TECHNOLOGY SOME CARRIERS LED BY MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL ALREADY HAVE EMBRACED TDMA BUT THE ROLLOUT FOR TDMA HAS BEEN SLOW MCCAW RECENTLY ANNOUNCED IT HAS BEGUN OFFERING DIGITAL SERVICE COMMERCIALLY IN SOUTH FLORIDA SEVERAL MONTHS LATER THAN INDUSTRY ANALYSTS EXPECTED BELL ATLANTIC JOINS U S WEST INC AND PACIFIC TELESIS GROUP'S PACTEL CELLULAR UNIT WHICH EMBRACED THE CDMA TECHNOLOGY LAST YEAR CDMA EQUIPMENT HOWEVER ISN'T AVAILABLE YET BECAUSE STANDARDS ARE STILL BEING DEVELOPED A PROCESS THAT IS EXPECTED TO TAKE SEVERAL MONTHS DIGITAL TRANSMISSION IS EXPECTED TO IMPROVE CELLULAR SERVICE BY PROVIDING CLEARER SOUND AND GREATER PRIVACY BUT CELLULAR CARRIERS WORRY THAT TWO RIVAL TECHNOLOGIES WILL CONFUSE AND ANNOY CUSTOMERS WHO MAY BE FORCED TO USE ANALOG TRANSMISSION WHEN THEY TRAVEL 9303040072 930304 WHO'S NEWS ROUSE NAMES DEERING PRESIDENT COLUMBIA MD ROUSE CO SAID ANTHONY W DEERING WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE REAL ESTATE DEVELOPMENT CONCERN MR DEERING 48 YEARS OLD HAS BEEN WITH ROUSE SINCE 1972 MOST RECENTLY AS CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION MR DEERING WILL REPORT TO MATHIAS J DEVITO 62 THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY'S CHIEF OPERATING OFFICER POSITION IS NEW THE OFFICE OF PRESIDENT HAS BEEN VACANT SINCE MICHAEL SPEAR DIED IN A PLANE CRASH IN AUGUST 1990 ROUSE'S ASSETS INCLUDE MORE THAN 200 OPERATING PROPERTIES IN 26 STATES THE DISTRICT OF COLUMBIA AND CANADA ROUSE ALSO DEVELOPED COLUMBIA MD A PLANNED COMMUNITY MIDWAY BETWEEN WASHINGTON AND BALTIMORE 9303040071 930304 NOTABLE & QUOTABLE FROM THE FEB 28 ISSUE OF HORACE BUSBY'S BUSBY PAPERS A WASHINGTON NEWSLETTER ON CAPITOL HILL AT ONE OF THE MANY WATERING HOLES OLD TIMERS WERE TRYING RECENTLY TO RECOLLECT WHO AMONG DEMOCRATS PAST THE NEW PRESIDENT MOST RESEMBLED THE CONSENSUS WAS A SURPRISE HE IS UNLIKE THE THREE PRESIDENTS FROM THE SENATE MR TRUMAN MR KENNEDY AND MR JOHNSON ALL OF WHOM KNEW THE LEVERS ON CAPITOL HILL BILL CLINTON IT WAS AGREED IS CONDUCTING HIS OFFICE MORE LIKE A HUBERT H HUMPHREY CLONE THE FORMER MINNESOTA SENATOR AND VICEPRESIDENT HAD AN IDEA A MINUTE WHICH HE EXPLAINED AT LENGTH HE DID SO IN EBULLIENT MANNER DUBBING HIMSELF AS THE HAPPY WARRIOR PURSUING WHAT HE CALLED THE POLITICS OF JOY TROUBLE WAS HHH NEVER GOT ANY OF HIS PROPOSALS PASSED HE WAS TOO FULL OF HIMSELF TO CARE ABOUT NICETIES MR CLINTON AS A FORMER GOVERNOR HHH WAS A FORMER MAYOR HAD TO GET THINGS DONE IN HIS NEARONEPARTY STATE BUT HE FACED FAR LESS FORMIDABLE OPPOSITION THAN HE DOES NOW 9303040070 930304 COURT ALLOWS CREDITORS OF M HOLDINGS TO JOIN A SUIT AGAINST RIDDELL NEWARK NJ A FEDERAL BANKRUPTCY COURT HERE HAS ALLOWED SOME OF THE CREDITORS OF THE FORMER MACGREGOR SPORTING GOODS INC TO JOIN MACGREGOR'S SUCCESSOR IN A POSSIBLE SUIT AGAINST RIDDELL SPORTS INC M HOLDINGS INC FORMERLY MACGREGOR HAS BEEN UNDER CHAPTER 11 PROTECTION FROM CREDITORS SINCE MARCH 1989 THE SUIT WHICH WOULD BE FILED WITHIN THE NEXT SIX WEEKS CLAIMS SALES OF CERTAIN M HOLDINGS ASSETS TO RIDDELL WERE FRAUDULENT CONVEYANCES AS PROVIDED IN THE US BANKRUPTCY CODE AND APPLICABLE STATE LAW THE COURT SAID THAT IF M HOLDINGS SUED ITS UNSECURED CREDITORS' COMMITTEE COULD JOIN THE SUIT RIDDELL SPORTS SAID THE SUIT HAS NO MERIT AND WILL CONTEST IT VIGOROUSLY IF IT IS FILED THE CONTESTED TRANSACTION INCLUDED AN APRIL 1989 SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF TWO M HOLDINGS SUBSIDIARIES TO RIDDELL ONE SUBSIDIARY OWNED THE RIGHT TO USE THE MACGREGOR TRADEMARK WITH RESPECT TO CERTAIN PRODUCTS FREE OF ROYALTIES THE OTHER MANUFACTURED AND MARKETED FOOTBALL HELMETS AND SHOULDER PADS UNDER THE RIDDELL TRADEMARK A FEBRUARY 1989 SALE INCLUDED THE RIGHTS TO THE RIDDELL TRADEMARKS ON PRODUCTS OTHER THAN FOOTBALL PROTECTIVE GEAR M HOLDINGS SAID 9303040068 930304 ECONOMY US CAR SALES SLOWED IN LATE FEBRUARY DEALERS CITE DOUBTS ABOUT CLINTON PLAN BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CAR SALES HIT THE SKIDS IN LATE FEBRUARY AND MANY DEALERS AROUND THE COUNTRY ARE BLAMING THE UNCERTAINTY SURROUNDING PRESIDENT CLINTON'S ECONOMIC PLAN MEANWHILE FORD MOTOR CO AND CHRYSLER CORP CONTINUED TO PICK UP MARKET SHARE IN FEBRUARY FROM JAPANESE MANUFACTURERS BUT GENERAL MOTORS CORP HAD A SLIDE IN SHARE THE JAPANESE SHARE WHICH HAD PLUNGED IN JANUARY DROPPED AGAIN LAST MONTH TO 28 FROM 29 A YEAR EARLIER OVERALL DEALERS SAY SHOWROOM TRAFFIC HAS PLUNGED SINCE FEB 17 WHEN THE PRESIDENT UNVEILED A SWEEPING DEFICITREDUCTION PACKAGE OF TAX BOOSTS AND SPENDING CUTS CUSTOMERS ARE STANDING AROUND WITH THEIR HANDS IN THEIR POCKETS COMPLAINED WALLACE LOWENFIELD WHO OWNS FORD NISSAN AND SATURN DEALERSHIPS IN EL PASO TEXAS AUTOMOBILES AS BIGTICKET ITEMS THAT CONSUMERS GENERALLY BUY ON CREDIT ARE ESPECIALLY SENSITIVE TO ECONOMIC UNCERTAINTY IT'S POSSIBLE THEN THAT MANY BUYERS WILL SIT ON THE SIDELINES UNTIL THE ECONOMIC PLAN EMERGES IN ITS FINAL FORM FROM CONGRESS PREDICTED BOB TASCA A LINCOLNMERCURY DEALER IN SEEKONK MASS THERE'S A BUNCH OF CONFUSION IN THE MARKET PLACE RIGHT NOW ON WHAT'S GOING TO HAPPEN HE SAID SALES OF DOMESTICALLY PRODUCED CARS AND TRUCKS IN LATE FEBRUARY HIT A DISMAL SEASONALLY ADJUSTED ANNUAL SELLING PACE OF 93 MILLION VEHICLES DOWN FROM A 118 MILLIONVEHICLE RATE IN THE PREVIOUS 30 DAYS AND A 98MILLION RATE IN THE YEARAGO PERIOD THE RECOVERY WHICH WAS ONLY JOGGING AHEAD IS ALREADY TAKING A BREATHER SAID TOM WEBB CHIEF ECONOMIST FOR THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION OVERALL THE INDUSTRY SOLD 263431 VEHICLES IN LATE FEBRUARY COMPARED WITH 326236 CARS AND TRUCKS A YEAR AGO THE DAILY SELLING RATE OF VEHICLES ACTUALLY ROSE 77 IN THE LATEST PERIOD BECAUSE THERE WERE JUST SIX SELLING DAYS IN THE PERIOD COMPARED WITH EIGHT A YEAR EARLIER BUT DESPITE THAT STATISTICAL ANOMALY THE LATEST RESULTS WERE A BIG DISAPPOINTMENT TO AUTO MAKERS AND DEALERS HOWEVER CAR DEALERS ARE HOPEFUL THAT SALES WILL PICK UP ONCE CONGRESS AND THE NEW ADMINISTRATION HAMMER OUT A NEW ECONOMIC PLAN GM ENDED FEBRUARY WITH A 329 SHARE OF THE CAR AND TRUCK MARKET DOWN FROM A 352 SHARE A YEAR AGO GM'S OVERALL VEHICLE SALES FELL 47 DURING THE MONTH FROM A YEAR AGO ITS CAR SALES TUMBLED 142 WHILE ITS TRUCK SALES CLIMBED 165 EVERY GM CAR DIVISION BESIDES SATURN REPORTED LOWER SALES IN FEBRUARY SATURN'S SALES ROSE 376 FROM A YEAR AGO ON THE TRUCK SIDE THE PICTURE WAS FAR BRIGHTER FOR GM SALES OF ITS MIDSIZE CHEVROLET CK PICKUP TRUCK ROSE 153 DEALERS SAID THAT THE CONTROVERSY OVER THE SIDESADDLE FUEL TANKS ON THE CK'S PREDECESSOR HAS HAD NO EFFECT ON SALES OF THE CURRENT MODEL FORD MEANWHILE SAW ITS SHARE OF THE US CAR AND TRUCK MARKET IN FEBRUARY CLIMB TO 269 FROM 245 A YEAR AGO FORD REPORTED A 12 JUMP IN VEHICLE SALES IN FEBRUARY LARGELY HELPED BY A 197 RISE IN TRUCK SALES FORD ALSO BENEFITED FROM BIG SALES GAINS FROM ITS NEWER VEHICLES SALES OF THE LINCOLN MARK VIII MORE THAN TRIPLED FROM A YEAR AGO AND SALES OF THE REDESIGNED FORD PROBE SURGED 831 CHRYSLER CAPTURED A 151 SHARE OF THE VEHICLE MARKET DURING THE MONTH UP FROM A 127 SHARE A YEAR AGO CHRYSLER'S VEHICLE SALES SHOT UP 207 LAST MONTH ITS CAR SALES ROSE 224 AND TRUCK SALES IMPROVED 195 CHRYSLER IS ALSO BENEFITING FROM SOME HOT NEW PRODUCTS INCLUDING ITS JEEP GRAND CHEROKEE AND ITS NEW LINE OF MIDSIZE CARS THE JAPANESE AUTO MAKERS HOWEVER SAW THEIR SHARE OF THE US MARKET SHRINK TOYOTA MOTOR CORP GARNERED AN 8 SHARE OF THE TOTAL VEHICLE MARKET IN FEBRUARY DOWN FROM AN 85 SHARE A YEAR AGO BUT THE PICTURE WAS EVEN MORE BLEAK AT HONDA MOTOR CO ITS SHARE OF THE US VEHICLE MARKET TUMBLED TO 48 FROM 59 NISSAN MOTOR CO WHICH IS ENJOYING STRONG DEMAND FOR ITS NEW ALTIMA MIDSIZE SEDAN SAW ITS SHARE RISE SLIGHTLY TO 44 FROM 42 NOTE THERE WERE 24 SELLING DAYS IN THE MOST RECENT MONTH AND 25 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9303040067 930304 BUSINESS BRIEF REVCO DS INC COMPANY AGREES TO PURCHASE 21 DRUGSTORES FILES OF NINE REVCO DS INC SAID IT AGREED TO BUY 21 DRUGSTORES IN TWO SEPARATE TRANSACTIONS ALONG WITH THE PHARMACY FILES OF NINE OTHER STORES TERMS WEREN'T DISCLOSED THE TWINSBURG OHIO DRUGSTORE RETAILER SAID IT AGREED TO BUY 12 STORES IN EASTERN TENNESSEE AND WESTERN VIRGINIA FROM BEGLEY DRUG INC OF KNOXVILLE TENN TOGETHER WITH THE PHARMACY FILES OF NINE OTHER STORES WHICH WILL BE CLOSED IN A SEPARATE TRANSACTION REVCO AGREED TO BUY NINE NORTH CAROLINA STORES FROM CORNWELL DRUG STORES INC BASED IN MORGANTON NC BOTH CHAINS ARE CLOSELY HELD AFTER THE CLOSING OF THE TRANSACTIONS EXPECTED EARLY NEXT WEEK REVCO WILL HAVE 1181 STORES IN NINE EASTERN STATES 9303040066 930304 BUSINESS BRIEF BMC SOFTWARE INC STOCK FALLS 13 AS CHAIRMAN ADDRESSES ANALYST FORECASTS BMC SOFTWARE INC CHAIRMAN AND CHIEF EXECUTIVE MAX WATSON SAID WEAKNESS IN INTERNATIONAL SALES AND DELAYS IN CLOSING ORDERS LEFT HIM UNCOMFORTABLE WITH ANALYSTS' FOURTHQUARTER EARNINGS ESTIMATES MR WATSON'S COMMENTS WERE MADE AT A SAN FRANCISCO CONFERENCE YESTERDAY AND CONFIRMED BY A COMPANY SPOKESWOMAN THE MARKET RESPONDED SWIFTLY IN NATIONAL OVERTHECOUNTER TRADING BMC FELL 13 OR 875 TO 5750 ON VOLUME OF 28 MILLION SHARES FIVE TIMES THE DAILY AVERAGE FOR THE FOURTH QUARTER ENDING THIS MONTH ZACKS INVESTMENT RESEARCH INC SHOWED A MEAN ANALYSTS' EARNINGS ESTIMATE OF 73 CENTS FOR THE SUGAR LAND TEXAS DEVELOPER OF IBM COMPATIBLE SOFTWARE BMC SOFTWARE INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MAX WATSON SAID HE WAS UNCOMFORTABLE COMMENTING ON ANALYSTS' FOURTHQUARTER EARNINGS ESTIMATES AT A MEETING EARLIER IN THE WEEK AN ARTICLE YESTERDAY INCORRECTLY STATED HE WAS UNCOMFORTABLE WITH THE ESTIMATES 9303040063 930304 BUSINESS BRIEF BRIERLEY INVESTMENTS LTD NEW ZEALAND FIRM'S PROFIT ROSE 25 FOR FISCAL 1ST HALF BRIERLEY INVESTMENTS LTD SAID PROFIT ROSE 25 IN THE FIRST HALF ENDED DEC 31 BUT THE IMPROVEMENT WAS MAINLY BECAUSE OF A STEEP DROP IN TAXES THE NEW ZEALAND HOLDING COMPANY POSTED NET INCOME OF 1127 MILLION NEW ZEALAND DOLLARS US596 MILLION COMPARE WITH NZ905 MILLION A YEAR EARLIER SALES FELL 60 TO NZ125 BILLION FROM NZ315 BILLION PAUL COLLINS CHIEF EXECUTIVE OFFICER SAID THE IMPROVEMENT IN PROFIT PARTLY REFLECTED A GOOD PERFORMANCE FROM ITS NEW ZEALAND OPERATIONS A RETURN TO PROFITABILITY OF ITS AUSTRALIAN OPERATIONS AND A SIGNIFICANT DROP IN FUNDING COSTS AND OVERHEAD BRIERLEY ALSO SAID IT PLANS TO RAISE NZ270 MILLION THROUGH AN ISSUE OF CONVERTIBLE NOTES THE NOTES WILL BE OFFERED TO EXISTING SHAREHOLDERS ON THE BASIS OF ONE NOTE FOR EVERY EIGHT BRIERLEY SHARES HELD BRIERLEY SAID PROCEEDS FROM THE ISSUE WILL BE USED TO FUND NEW ACQUISITIONS THE COMPANY DIDN'T SPECIFY ANY PARTICULAR ACQUISITIONS IT'S LOOKING AT 9303040062 930304 BUSINESS BRIEF SOLECTRON CORP COMPANY EXPECTS TO POST HIGHER SALES NET FOR QUARTER SOLECTRON CORP SAID IT EXPECTS TO REPORT HIGHER SALES AND NET INCOME FOR ITS SECOND QUARTER ENDED FEB 26 THE MILPITAS CALIF MAKER OF MANUFACTURING SYSTEMS SAID IT EXPECTS TO REPORT NET INCOME FOR THE QUARTER OF 66 MILLION OR 38 CENTS A SHARE ON SALES OF 1874 MILLION IN THE YEAREARLIER PERIOD THE COMPANY POSTED NET OF 34 MILLION OR 20 CENTS A SHARE ON SALES OF 94 MILLION FOR THE SIX MONTHS THE COMPANY EXPECTS TO REPORT NET OF 107 MILLION OR 62 CENTS A SHARE COMPARED WITH 72 MILLION OR 45 CENTS A SHARE A YEAR AGO THE COMPANY EXPECTS TO REPORT SALES IN THE FIRST HALF WERE 3239 MILLION COMPARED WITH 1995 MILLION IN THE YEARAGO PERIOD 9303040061 930304 PHILIP MORRIS TO BUY UNITED BISCUITS UNIT IN 3188 MILLION PACT NEW YORK PHILIP MORRIS COS INDULGING ITS GROWING APPETITE FOR EUROPEAN CANDY COMPANIES AGREED TO ACQUIRE CHOCOLATE MAKER TERRY'S GROUP FROM UNITED BISCUITS HOLDINGS PLC FOR 220 MILLION 3188 MILLION THE ACQUISITION WILL BE ADDED TO THE EXPANDING SELECTION OF SWEETS UNDER PHILIP MORRIS'S KRAFT GENERAL FOODS INTERNATIONAL SINCE 1990 PHILIP MORRIS HAS SPENT A COMBINED 53 BILLION ACQUIRING JACOBS SUCHARD AG A SWISS CHOCOLATE AND COFFEE CONCERN AND FREIA MARABOU AS THE SCANDINAVIAN CHOCOLATE AND SNACK MAKER ALTHOUGH THE SUCHARD UNIT IS ONE OF EUROPE'S LARGEST CHOCOLATE MAKERS IT HAS ONLY 1 OF THE 6 BILLION UK CHOCOLATE MARKET THE ADDITION OF TERRY'S PROMISES TO PUSH PHILIP MORRIS'S SHARE OF THE BRITISH MARKET TO ABOUT 6 TERRY'S MAIN BUSINESS IS BOXED CHOCOLATE AND IT SELLS CALLARD & BOWSER TOFFEES IN THE US ANALYSTS EXPECT PHILIP MORRIS TO CONTINUE TO FOCUS ON SMALL ACQUISITIONS IN AN ATTEMPT TO BUILD A GLOBAL FOOD BUSINESS ON THE SCALE OF NESTLE SA THEY CAN GO OUT AND DO A LOT OF THESE TYPES OF ACQUISITIONS AND NOT FEEL A MAJOR DENT SAYS RONALD MORROW AN ANALYST WITH SMITH BARNEY HARRIS & UPHAM CO THEY HAVE A TON OF EXCESS CASH FLOW UNITED BISCUITS PLANS TO USE THE PROCEEDS TO REDUCE DEBT THE SALE WILL RESULT IN A ONETIME GAIN OF 75 MILLION THIS YEAR THE COMPANY SAID 9303040060 930304 BUSINESS BRIEF TIFFANY & CO EARNINGS FOR FOURTH QUARTER YEAR FELL ON JAPANESE SALES TIFFANY & CO REPORTED EARNINGS DECLINES OF 28 AND 38 RESPECTIVELY FOR THE FISCAL FOURTH QUARTER AND YEAR CITING SLACKENED DEMAND FOR ITS LUXURY GOODS IN JAPAN AND EXPANSIONRELATED COSTS THE NEW YORK COMPANY'S SHARES NEVERTHELESS ROSE 1 YESTERDAY CLOSING AT 2825 IN NEW YORK STOCK EXCHANGE TRADING NET INCOME FOR THE QUARTER ENDED JAN 31 DROPPED TO 87 MILLION OR 55 CENTS A SHARE FROM 121 MILLION OR 75 CENTS A SHARE A YEAR EARLIER FOR THE YEAR NET WAS 157 MILLION OR 1 A SHARE DOWN FROM 255 MILLION OR 161 A SHARE FOR FISCAL 1992 WHICH INCLUDED A 63 MILLION CHARGE FOR A RETIREEBENEFITS ACCOUNTING CHANGE SALES FOR THE QUARTER ROSE 2 TO 1524 MILLION BUT FOR THE YEAR WERE DOWN 1 TO 4864 MILLION TIFFANY WHICH SELLS JEWELRY AND LUXURY GOODS SAID IT PLANS TO OPEN NEW STORES IN FLORIDA AND SINGAPORE AND TWO NEW BOUTIQUES IN JAPAN THIS YEAR IT ALSO PLANS TO BEEF UP ITS CATALOG AND TRADE BUSINESSES TIFFANY NOTED THAT RETAIL SALES IN THE US WERE UP 7 FROM A YEAR EARLIER 9303040059 930304 BUSINESS BRIEF STANLEY WORKS TOOL MAKER TO RECORD GAIN FROM SALE OF ITS MAX STOCK STANLEY WORKS SAID IT WILL RECORD A GAIN FROM AN ASSET SALE AND WILL BUY BACK A MILLION SHARES TO SETTLE A SHAREHOLDER SUIT THE NEW BRITAIN CONN COMPANY ALSO SAID IT EXPECTS TO REPORT A STRONG INCREASE IN FIRSTQUARTER OPERATING PROFIT AS ORDER RATES CONTINUE TO IMPROVE THE PRODUCER AND MARKETER OF TOOLS AND HOUSEHOLD PRODUCTS SAID IT REALIZED A GAIN OF 33 CENTS A SHARE IN FEBRUARY FROM THE SALE OF ITS STOCK IN MAX CO IN LAST YEAR'S FIRST QUARTER STANLEY HAD NET INCOME OF 175 MILLION OR 38 CENTS A SHARE ON REVENUE OF 5021 MILLION THE GAIN MAY BE TEMPERED BY RESTRUCTURING CHARGES AND THE INCREASE OF RESERVES REQUIRED FOR PRODUCT LIABILITY COSTS STANLEY ALSO REPORTED A SETTLEMENT PENDING COURT APPROVAL OF A SHAREHOLDER SUIT THAT CLAIMED THE COMPANY HAD INSTITUTED AN EMPLOYEE STOCK OWNERSHIP PLAN AND A COMPANY STOCK OPTION PLAN WITHOUT GIVING SHAREHOLDERS TIMELY INFORMATION UNDER TERMS OF THE SETTLEMENT STANLEY AGREED TO PURCHASE ONE MILLION SHARES OF ITS STOCK BETWEEN JAN 22 AND OCT 31 9303040058 930304 BOEING FEARS TRADE ACTIONS MAY HURT SALES CLINTON'S STANCE ON MIDEAST ASIA STIRS MORE CONCERN THAN AIRBUS SUBSIDIES BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO IS WORRYING ALOUD ABOUT POSSIBLE CLINTON ADMINISTRATION TRADE ACTIONS TOWARD ASIA AND THE MIDDLE EAST THAT COULD CRIPPLE THE COMPANY'S JETLINER BUSINESS FOR WEEKS PRESIDENT CLINTON HAS BEEN RAILING ABOUT EUROPEAN SUBISIDIES THAT HELP THE AIRBUS INDUSTRIE AIRCRAFT CONSORTIUM BUT BOEING HAS SERVED UP ONLY CAUTIOUS ENDORSEMENTS OF ACTION AGAINST ARCHRIVAL AIRBUS AND NOW THE COMPANY IS POINTING TO OTHER TRADE MATTERS AS THE MOST PRESSING OF GREATEST CONCERN COMPANY EXECUTIVES SAY IS THE THREAT POSED BY ANY US FAILURE TO RENEW MOST FAVORED NATION TRADE STATUS FOR CHINA ONE OF THE WORLD'S FEW HOT GROWTH MARKETS AND A MARKET WHERE BOEING HAS 46 BILLION IN JET ORDERS AND PURCHASE OPTIONS PRESIDENT CLINTON INDICATED DURING THE CAMPAIGN LAST YEAR THAT HE MIGHT FAVOR WITHHOLDING THE MOSTFAVORED STATUS FROM CHINA UNLESS THAT COUNTRY MAKES CONCESSIONS IN THE HUMANRIGHTS AREA THE MOSTFAVORED DESIGNATION CAN REDUCE TARIFFS ON CHINESE EXPORTS FROM MORE THAN 40 OF THE VALUE OF THE GOODS TO AS LITTLE AS 4 BOEING OFFICIALS SAY ANY SUCH THREAT TO CHINESE EXPORTS WOULD LIKELY BRING ON WIDESPREAD CANCELLATIONS OF JET ORDERS IN RETALIATION THE UNUSUAL MOVE BY BOEING A COMPANY THAT RARELY TAKES THE INITIATIVE IN PUBLICLY POINTING UP ITS TRADE PROBLEMS IS TIMED TO SEIZE ON SUDDENLY RENEWED US GOVERNMENT INTEREST IN PRESERVING THE NATION'S AEROSPACE INDUSTRY BOEING MANAGERS ACKNOWLEDGE THE SURGE OF INTEREST HAS BEEN FUELED BY THE PRESIDENT'S CRITICISM IN RECENT WEEKS OF EUROPEAN GOVERNMENT SUBSIDIES FOR AIRBUS AND BY BOEING'S RECENT ANNOUNCEMENT OF 27000 JOB CUTS AMID PLANS FOR SHARPLY CURTAILED PRODUCTION RICHARD ALBRECHT EXECUTIVE VICE PRESIDENT FOR THE JETLINER UNIT OF SEATTLEBASED BOEING SAID IN AN INTERVIEW THAT BOEING SUPPORTS A NEW GOVERNMENT EFFORT TO ENSURE THAT AIRBUS LIVES UP TO SUBSIDY LIMITS AGREED ON LAST YEAR AND BOEING STILL WANTS TO PUSH FOR LONGTERM GAINS ON THE ISSUE BUT MR ALBRECHT SAID THAT HE PLANS TO CALL ATTENTION INSTEAD TO POTENTIAL PROBLEMS WITH PLANNED SALES TO CHINA IRAN AND VIETNAM WHEN HE REVIEWS THE COMPANY'S ANNUAL LONGTERM MARKET OUTLOOK AT A NEWS CONFERENCE IN WASHINGTON DC TODAY WE ALREADY ARE HAVING TO LAY OFF A SIGNIFICANT NUMBER OF PEOPLE BECAUSE OUR BUSINESS BASE IS ERODED MR ALBRECHT SAID WE DON'T WANT TO HAVE MORE ADDED JO MASTERSON DIRECTOR OF GOVERNMENT AND INTERNATIONAL AFFAIRS FOR BOEING'S COMMERCIALAIRPLANE UNIT IT'S CRITICAL TO US THAT WE HAVE UNIMPEDED ACCESS TO ALL THE MARKETS IN THE WORLD IN IRAN A US BAN ON SALES RELATING TO THAT NATION'S SUPPORT FOR TERRORIST ACTIONS HAS KEPT BOEING FROM SELLING IRAN AIR AS MANY AS 20 OF BOEING'S 737 MODEL AIRLINERS WITH A TOTAL VALUE OF 1 BILLION EVEN THOUGH THE US PERMITS AIRBUS JETS WITH SUBSTANTIAL US CONTENT TO BE SOLD THERE AIRBUS HAS DELIVERED SIX LARGER JETS TO IRAN AND PLANS DELIVERIES OF TWO MORE IN VIETNAM ANOTHER ASIAN MARKET WHERE DEMAND IS SOARING BOEING ALSO IS EAGER TO SEE US SANCTIONS ON SALES LIFTED SO IT CAN PROCEED WITH A MAJOR SALE OF ITS MODEL 737 AND 767 AIRLINERS THE POSITIONS TO BE TAKEN BY THE NEW ADMINISTRATION ON THE SALES TO IRAN AND VIETNAM ARE YET TO BE CLEARLY DEFINED ALTHOUGH BOEING MANAGERS ARE HOPING FOR ACTIONS FAVORABLE TO THE COMPANY BOEING OFFICIALS SAY THEY HAVEN'T YET GOTTEN A CLEAR INDICATION FROM THE NEW ADMINISTRATION ON ITS VIEW ON THE TRADE STATUS OF CHINA AND THERE THE STAKES ARE FAR GREATER BOEING'S MANAGERS CONTEND THAT A FAILURE TO RENEW MOSTFAVORED STATUS FOR CHINA WOULD GIVE AIRBUS AN EDGE ON 41 BILLION IN DELIVERIES THAT BOEING PREDICTS WILL OCCUR THERE BY THE YEAR 2010 IRONICALLY IT IS PRESIDENT CLINTON WHO HAS PROPOSED FURTHER RESTRAINING AIRBUS SUPPORT AND SUBSIDIES AS A MEANS OF PROTECTING BOEING FROM FURTHER JOB CUTS DUE TO LOSS OF MARKET SHARE ALSO DURING HIS CAMPAIGN LAST YEAR THE PRESIDENT SUGGESTED THAT HE WAS GOING TO USE MOSTFAVORED NATION AS A WEAPON OR TOOL IN WINNING HUMANRIGHTS AGREEMENTS FROM CHINA MR MASTERSON OF BOEING SAID AT THIS POINT HE SAID WE AREN'T CERTAIN WHAT THE PRESIDENT WILL DO AND WE AREN'T SURE WHAT CONGRESS WILL DO CURRENTLY THE GOVERNMENT MUST ACT TO RENEW CHINA'S MOSTFAVORED NATION STATUS EVERY JUNE IN PAST YEARS FORMER PRESIDENT BUSH HAD BEEN ABLE TO PRESERVE THE DESIGNATION BY VETOING CONGRESSIONAL ACTIONS MUCH OF BOEING'S CONCERN SAID MR ALBRECHT IS THAT THE DEMOCRATS ARE IN POWER NOW AND CLEARLY THERE HAVE BEEN SOME DEMOCRATS WHO HAVE BEEN LEADERS IN THE EFFORT TO DENY THE DESIGNATION 9303040057 930304 OTC FOCUS STOCKS CONTINUE THEIR CLIMB BOOSTED TO SOME EXTENT BY BOND MARKET RALLY BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS SHOT HIGHER FOR A SECOND DAY IN A ROW YESTERDAY BOOSTED BY TECHNICAL FACTORS AND A RALLYING BOND MARKET AS ON TUESDAY TRADERS SAID THERE WERE FEW NEWS DEVELOPMENTS TO ACCOUNT FOR THE BUYING INSTEAD THEY TIED THE GAINS TO A REBOUND FROM A SHARP SELLING SPREE LAST MONTH MEANWHILE OBSERVERS SAID A 3/4POINT JUMP IN LONGTERM BOND PRICES WHICH PUSHED DOWN THE YIELD ON THE 30YEAR TREASURY BOND TO 678 STOKED THE RENEWED ENTHUSIASM THE NASDAQ COMPOSITE INDEX ADVANCED 620 OR 091 TO 68392 FOLLOWING A GAIN OF MORE THAN EIGHT POINTS OR 12 ON TUESDAY GAINERS EASILY TOPPED LOSERS 1511TO1133 NASDAQ'S NATIONAL MARKET SYSTEM VOLUME JUMPED TO 202956700 SHARES FROM 177901900 SHARES TUESDAY VOLUME HASN'T TOPPED THE 200MILLION MARK SINCE LAST THURSDAY WHEN 2285 MILLION SHARES CHANGED HANDS THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 087 OR 035 TO 24741 AND THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 351 OR 010 TO 340404 WHILE PRESIDENT CLINTON'S PLANS TO REVIVE THE ECONOMY AND REFORM THE HEALTHCARE INDUSTRY TORPEDOED THE MARKET LATE LAST MONTH OBSERVERS SAID INVESTORS ARE BECOMING MORE COMFORTABLE ABOUT HIS PROPOSALS WE'VE HAD A PERIOD OF DIGESTION AND EVALUATION SAID PATRICK RYAN PRESIDENT OF RYAN HARTLEY & LEE AND INVESTORS HAVE COME TO REALIZE THAT THE PRESIDENT'S INITIATIVES ARE STILL SUBJECT TO COMPROMISE IN CONGRESS NOTHING IS EVER AS EXTREME AS IT FIRST APPEARS HE ADDED HUGH JOHNSON MARKET STRATEGIST AT FIRST ALBANY SAID HE EXPECTS SMOOTH SAILING FOR PARTS OF THE CLINTON PLAN THAT WILL BENEFIT SMALL COMPANIES AND THE NASDAQ STOCK MARKET AMONG THEM ARE A RESEARCHANDDEVELOPMENT TAX CREDIT AND A TAX BENEFIT FOR INVESTING IN SMALL COMPANIES FINALLY THE RALLY IN BONDS AND RESULTING DECLINE IN LONGTERM INTEREST RATES CAN BE TRACED TO WHEN CLINTON FIRST OUTLINED HIS ECONOMIC PACKAGE IN THE MIDDLE OF LAST MONTH SWITCHING INTO STOCKS AS BOND MARKET YIELDS SLIDE INTERESTBEARING INVESTMENTS HAVE BECOME LESS ATTRACTIVE AND MORE INVESTORS ARE WILLING TO GAMBLE FOR HIGHER RETURNS IN OVERTHECOUNTER STOCKS WHERE ARE YOU GOING TO PUT YOUR MONEY YOU CAN'T MAKE ANYTHING ON THE YIELD SIDE SAID RYAN OF RYAN HARTLEY WHETHER IT'S GOING INTO MUTUAL FUNDS OR INDIVIDUAL STOCKS IT'S DRIVING THE MARKET HE SAID CHIRON JUMPED 1 TO 53 THE STOCK HAS RISEN ALMOST 9 DURING THE PAST TWO TRADING DAYS INVESTORS ARE GRABBING THE STOCK IN ANTICIPATION OF POSITIVE DATA ON ITS BETASERON DRUG FOR TREATING MULTIPLE SCLEROSIS TRADERS SAID ON MARCH 19 THE EMERYVILLE CALIF COMPANY WILL PRESENT TEST RESULTS TO A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE WHILE THE MARKET OVERALL WAS PROPELLED HIGHER SHARES OF BMC SOFTWARE WENT INTO A TAILSPIN AFTER MAX WATSON ITS CHAIRMAN COMMENTED ABOUT THE TEXASBASED COMPANY'S SALES THE STOCK TUMBLED 8 3/4 TO 57 1/2 MR WATSON SAID AT AN INVESTMENT CONFERENCE THAT INTERNATIONAL SALES REMAIN WEAK HE ADDED THAT AN INDUSTRY TREND AWAY FROM MAINFRAME COMPUTERS MIGHT AFFECT THE PACE AT WHICH BMC'S CUSTOMERS MAKE PURCHASES CHEMTRAK CONTINUED TO GAIN FOLLOWING NEWS TUESDAY THAT IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET A NONPRESCRIPTION ATHOME CHOLESTEROL TEST THE PRODUCT IS SAID TO BE THE FIRST OF ITS KIND SHARES OF THE SUNNYVALE CALIF COMPANY JUMPED 2 3/4 TO 15 ON HEAVY VOLUME OF 22 MILLION SHARES ON TUESDAY THEY SURGED 5 1/4 AST RESEARCH SLID 1 7/8 TO 15 1/8 THE IRVINE CALIF PERSONALCOMPUTER MAKER PREDICTED THAT ITS NEARTERM EARNINGS WILL BE DEPRESSED BY RECENT PRICE CUTS THE COMPANY PREDICTED PROFIT MARGINS WILL CONTRACT 3 TO 4 IN THE THIRD QUARTER THAT ENDS THIS MONTH FOLLOWING THE DISCLOSURE ANALYSTS AT ALEX BROWN & SONS AND BEAR STEARNS DOWNGRADED RATINGS ON THE STOCK CHARMING SHOPPES ADDED 3/4 TO 15 3/4 ON HEAVY VOLUME OF 28 MILLION SHARES THE STOCK TOPPED THE MOSTACTIVE LIST TUESDAY WHEN IT GAINED 3/8 BERNARD BRODSKY TREASURER OF THE BENSALEM PA APPAREL RETAILER SAID HE WASN'T AWARE OF ANY REASON FOR THE HEAVY TRADING TYPICALLY ONLY ABOUT 664000 SHARES OF THE STOCK TRADE DAILY BORLAND INTERNATIONAL ADDED 5/8 TO 22 1/8 ITS CHIEF FINANCIAL OFFICER ALAN HENRICKS SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT PUT THE SCOTTS VALLEY CALIF SOFTWARE DEVELOPER'S FOURTHQUARTER EARNINGS AT 10 CENTS A SHARE THAT IS AT THE HIGH END OF FORECASTS GATHERED BY ZACKS INVESTMENT RESEARCH INC IN THE YEARAGO PERIOD BORLAND HAD A LOSS OF 105 A SHARE AFTER AN ACQUISITIONRELATED CHARGE ORTHOFIX INTERNATIONAL JUMPED 1 1/2 TO 10 1/4 AFTER OPPENHEIMER & CO ADDED THE STOCK TO A RECOMMENDED LIST ANALYST GLENN REICIN CITED THE DUTCH MEDICALDEVICE COMPANY'S RECORD FOR PREDICTABLE GROWTH AND STOCK PRICE WHICH HE SAID IS ATTRACTIVE RELATIVE TO ITS PEERS CIRCUIT SYSTEMS GAVE UP 1 TO CLOSE AT 7 3/4 ITS NET INCOME EASED TO 11 CENTS A SHARE IN THE THIRD QUARTER ENDED JAN 31 DOWN FROM 12 CENTS A SHARE A YEARAGO SALES AT THE OAK GROVE VILLAGE ILL CIRCUITBOARD MAKER FELL TO 118 MILLION FROM 135 MILLION A YEAREARLIER CURATIVE TECHNOLOGIES ADDED 1 1/8 TO 6 1/2 DAK SECURITIES ANALYST DOUG KASS SAID THE EAST SETAUKET NY COMPANY IS CONSIDERING A SPINOFF THAT WOULD DIVIDE THE CORPORATION INTO TWO PARTS A DRUG DEVELOPER AND A WOUNDTREATMENTCENTER OPERATOR COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT 9303040056 930304 BUSINESS BRIEF ENZO BIOCHEM INC COMPANY FILES SUIT SEEKING INJUNCTION AGAINST CALGENE ENZO BIOCHEM INC SAID IT FILED A LAWSUIT SEEKING A PERMANENT INJUNCTION AND DAMAGES AGAINST CALGENE INC CHARGING PATENT INFRINGEMENT IN GENEBASED DRUG DEVELOPMENT THE SUIT FILED IN A FEDERAL COURT IN DELAWARE ALLEGES THAT CALGENE MISLED THE PATENT AND TRADEMARK OFFICE AND SEEKS A RULING THAT CALGENE'S GENETIC ANTISENSE PATENT IS INVALID ANTISENSE IS A METHOD FOR DEVELOPING DRUGS THAT BLOCK THE ACTION OF CERTAIN GENES ENZO FARMINGDALE NY HAD SAID EARLIER THAT THE PATENT OFFICE ISSUED A PIONEER PATENT TO WHICH ENZO HAS FULL AND EXCLUSIVE RIGHTS COVERING GENETIC ANTISENSE TECHNOLOGY AND ITS APPLICATION IN BOTH PROKARYOTES SIMPLE CELLS SUCH AS BACTERIA LACKING A TRUE NUCLEUS AND EUKARYOTES PLANT AND ANIMAL CELLS THAT DO HAVE A NEUCLUS LAST MONTH CALGENE DAVIS CALIF FILED SUIT IN A FEDERAL COURT IN CALIFORNIA AGAINST ENZO IN ITS SUIT CALGENE SOUGHT AN INVALID RULING ON AN ENZO PATENT AND DAMAGES REGARDING THE BREADTH OF ENZO'S PATENT AND THE REVENUES THAT IT WOULD REALIZE FROM CALGENE AS A LICENSEE UNDER THE PATENT CALGENE OFFICIALS DECLINED TO COMMENT ON THE ENZO SUIT 9303040054 930304 TECHNOLOGY BRIEF SEPRACOR INC PATENT IS WON ON FORMULAS FOR PERIODONTAL TREATMENT SEPRACOR INC MARLBOROUGH MASS SAID IT WON A US PATENT FOR ITS TOOTHPASTE AND MOUTHWASH FORMULAS OF SINGLEISOMER NONSTEROIDAL ANTIINFLAMMATORY SKETOPROFEN AND SFLURBIPROFEN FOR THE TREATMENT OF PERIODONTAL DISEASE THE COMPANY SAID PRECLINICAL STUDIES SHOWED THAT SKETOPROFEN AND SFLURBIPROFEN REDUCED INFLAMMATION AND BONE LOSS THE COMPANY SAID IT EXPECTS TO START EARLY HUMAN CLINICAL TRIALS WITH A TOOTHPASTE FORMULATION OF SKETOPROFEN THIS YEAR SEPRACOR SAID IT IS NOW EVALUATING IN PRECLINICAL AND CLINICAL TRIALS SINGLEISOMER FORMS OF OTHER LEADING PRESCRIPTION DRUGS RESEARCH WHICH COULD LEAD TO THE DEVELOPMENT OF MORE PRECISELY TARGETED DRUGS OR DRUGS WITH FEWER SIDE EFFECTS IT IS CONDUCTING HUMAN CLINICAL TRIALS ON A SINGLEISOMER FORM OF THE ANTIDEPRESSANT DRUG FLUOXETINE WHICH IS NOW BEING MARKETED AS PROZAC 9303040053 930304 BUSINESS BRIEF ROCKWELL INTERNATIONAL CORP ACQUISITION OF SWISS CONCERN IS SET TERMS UNDISCLOSED ROCKWELL INTERNATIONAL CORP SAID IT AGREED TO ACQUIRE SPRECHER & SCHUH AG A MAKER OF LOWVOLTAGE ELECTRONICCONTROL DEVICES BASED IN AARAU SWITZERLAND TERMS WEREN'T DISCLOSED THE SWISS CONCERN WHICH HAS ABOUT 1650 EMPLOYEES AND ANNUAL SALES OF ABOUT 200 MILLION WILL CONTINUE UNDER CURRENT MANAGEMENT WITH ITS OWN NAME ROCKWELL SAID THE NEWLY ACQUIRED COMPANY HAS BECOME PART OF ROCKWELL'S ALLENBRADLEY CO UNIT A MAKER OF INDUSTRIAL COMPUTERIZED CONTROL EQUIPMENT WITH ANNUAL SALES OF ABOUT 15 BILLION ROCKWELL INTERNATIONAL BASED IN SEAL BEACH CALIF HAS WIDELY DIVERSIFIED AEROSPACE AUTOMATIVE ELECTRONICS AND PRINTING INTERESTS THE COMPANY SAID IT EXPECTS TO COMPLETE THE PURCHASE IN ABOUT A MONTH THE TRANSACTION WILL BE FOR CASH ROCKWELL'S SPOKESMAN SAID LAST YEAR ALLENBRADLEY HAD EUROPEAN SALES TOTALING 197 MILLION UNTIL ITS ACQUISITION THE SWISS CONCERN WAS THE PRINCIPAL OPERATING UNIT OF A CLOSELY HELD PARENT COMPANY IT HAS ABOUT 1650 EMPLOYEES 9303040052 930304 INTERNATIONAL QUEBEC SEPARATISTS GET THEIR BIG BREAK WITH MULRONEY'S DEPARTURE AS PREMIER BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL MANY CANADIANS WERE GLAD TO SEE PRIME MINISTER BRIAN MULRONEY ANNOUNCE HIS RESIGNATION LAST WEEK FEW WERE MORE GRATIFIED THAN QUEBEC'S SEPARATISTS MR MULRONEY A BILINGUAL QUEBEC NATIVE MOUNTED TWO ALLOUT EFFORTS TO RESOLVE THE FRENCHSPEAKING PROVINCE'S LONGRUNNING CONSTITUTIONAL FEUD WITH THE REST OF CANADA HE FAILED DESPITE A CLOSE WORKING RELATIONSHIP WITH QUEBEC'S PREMIER ROBERT BOURASSA NOW MR MULRONEY IS LEAVING AND MR BOURASSA BATTLING CANCER MAY HAVE TO STEP ASIDE THE END OF THE PARTNERSHIP BETWEEN THE CONSERVATIVE PRIME MINISTER AND QUEBEC'S LIBERAL PREMIER WOULD SIGNAL THAT THE BEST POSSIBLE TEAM FOR HEALING CANADA'S WOUNDS COULDN'T CUT IT SAYS QUEBEC POLITICAL JOURNALIST JEANFRANCOIS LISEE THAT DOESN'T MEAN THE SEPARATISTS WILL WIN BUT IT MEANS THEY NEVER HAD IT SO GOOD AMONG THOSE RIDING HIGH IS LUCIEN BOUCHARD AN OLD UNIVERSITY CHUM AND ONETIME CLOSE ALLY OF MR MULRONEY'S AFTER HELPING SHAPE MR MULRONEY'S CONCILIATORY APPROACH TO QUEBEC MR BOUCHARD STUNNED OTTAWA BY QUITTING HIS CABINET POST AND THE CONSERVATIVE PARTY DURING MR MULRONEY'S 1990 DRIVE TO WIN RATIFICATION OF THE MEECH LAKE CONSTITUTIONAL ACCORD DESIGNED TO KEEP CANADA INTACT MR BOUCHARD BY HIS OWN ACCOUNT FELT THE GOVERNMENT WAS COMPROMISING QUEBEC'S INTERESTS TO APPEASE CRITICS OF THE PACT TO OTHERS IT SEEMED MR BOUCHARD HAD BETRAYED HIS FRIEND AND POLITICAL PATRON THE MEECH LAKE ACCORD DIED SOON AFTERWARD MR BOUCHARD AND A HALFDOZEN OTHER DISAFFECTED PARLIAMENT MEMBERS FORMED THE BLOC QUEBECOIS DEDICATED TO PROMOTING QUEBEC'S INDEPENDENCE TO THE BLOC AND TO MANY OTHER QUEBECERS MEECH LAKE'S FAILURE SYMBOLIZED ENGLISH CANADA'S REJECTION OF QUEBEC'S MINIMAL DEMANDS FOR SELFRULE WITHIN ITS DISTINCT SOCIETY TODAY THE 54YEAROLD MR BOUCHARD IS QUEBEC'S MOST CHARISMATIC POLITICIAN AND HE MAY SOON LEAD A MUCH BIGGER VANGUARD IN THE CANADIAN CAPITAL A FEDERAL ELECTION MUST BE HELD BY NOVEMBER QUEBEC POLLSTERS SAY THE BLOC QUEBECOIS IS POSITIONED TO WIN 40 OR MORE OF THE PROVINCE'S 75 SEATS IN THE HOUSE OF COMMONS THAT SUPPORT COULD SLIP DEPENDING PARTLY ON WHO SUCCEEDS MR MULRONEY AS CONSERVATIVE LEADER STEPHANE DION A UNIVERSITY OF MONTREAL POLITICAL SCIENCE PROFESSOR SAYS QUEBECERS WILL HAVE A STRONG INCENTIVE TO FOLLOW PAST PRACTICE AND THROW THEIR SUPPORT BEHIND THE PARTY LIKELY TO FORM THE NEXT GOVERNMENT BUT THAT REQUIRES A CLEAR ACCEPTABLE FRONTRUNNER MR DION SAYS AND JEAN CHRETIEN WHOSE FEDERAL LIBERAL PARTY NOW LEADS NATIONAL POLLS IS WIDELY DISLIKED IN HIS NATIVE QUEBEC WHAT'S MORE THE BLOC HAS LED IN QUEBEC SINCE 1990 ACCORDING TO CENTRE DE RECHERCHE SUR L'OPINION PUBLIQUE A QUEBEC POLLING AGENCY IT'S NOT JUST A PASSING TREND SAYS CLAUDE GAUTHIER THE CENTER'S RESEARCH DIRECTOR MANY ANALYSTS BELIEVE THE BLOC IS LIKELY TO ACCOUNT FOR A BIG CHUNK OF QUEBEC'S DELEGATION TO THE NEXT PARLIAMENT AND COULD WIELD IMPORTANT SWING VOTES IF NO PARTY WINS A MAJORITY FOR THE FIRST TIME IN HISTORY A SIGNIFICANT PORTION OF QUEBEC MPS WILL BE SEPARATIST SAYS MR LISEE THERE WILL BE NO WAY AROUND THAT EXACTLY WHAT SEPARATION MEANS IS YET TO BE DETERMINED LAST OCTOBER MR BOUCHARD SAID HE'D ACCEPT A DEAL ALONG THE LINES OF EUROPE'S MAASTRICHT ACCORD GIVING QUEBEC POLITICAL SOVEREIGNTY WITHIN A CANADIAN ECONOMIC SPHERE MEANWHILE SAYS GILLES DUCEPPE ANOTHER OF THE BLOC'S EIGHT CURRENT PARLIAMENT MEMBERS THE PARTY HAS THREE MAIN GOALS TO DEFEND QUEBEC'S INTERESTS IN OTTAWA A ROLE HE LIKENS TO THE AMERICAN CALL FOR NO TAXATION WITHOUT REPRESENTATION TO EXPLAIN TO OTHER CANADIANS WHAT'S GOING ON IN QUEBEC AND TO BREAK WITH THE PAST PATTERN OF HAVING POLITICIANS IN QUEBEC CITY AT ODDS WITH QUEBEC'S REPRESENTATIVES IN OTTAWA FOR MUCH OF THE LATE 1970S AND EARLY 1980S QUEBEC'S PREMIER WAS RENE LEVESQUE OF THE SEPARATIST PARTI QUEBECOIS WHILE THE PROVINCE'S FAVORITE SON IN OTTAWA WAS PRIME MINISTER PIERRE ELLIOTT TRUDEAU CHAMPION OF A STRONG FEDERAL GOVERNMENT THE PARTI QUEBECOIS WHICH HASN'T FIELDED NATIONAL CANDIDATES WILL THROW ITS ORGANIZATIONAL MUSCLE BEHIND THE BLOC QUEBECOIS IN THE COMING FEDERAL ELECTION PARTI QUEBECOIS LEADER JACQUES PARIZEAU RECENTLY CHORTLED THAT THE BLOC CONTINGENT COULD RENDER OTTAWA AS UNGOVERNABLE AS ITALY MAKING QUEBECERS ALL THE MORE LIKELY TO GIVE UP ON THE FEDERAL SYSTEM QUEBEC MUST HOLD A PROVINCIAL ELECTION BY THE FALL OF 1994 MR PARIZEAU HAS PROMISED TO HOLD A SOVEREIGNTY REFERENDUM WITHIN THE FOLLOWING YEAR IF HIS PARTY WINS MR BOUCHARD SAYS HE DOESN'T WANT TO SOW CHAOS BUT CRITICS OF THE BLOC SAY IT HAS FEW CONSTRUCTIVE PROPOSALS SOME PREDICT ITS POPULARITY BUILT ON MR BOUCHARD'S PERSONAL APPEAL WILL FADE WHEN THE PARTY FIELDS A FULL SLATE OF LESSER CANDIDATES LEAVING IT WITH LITTLE SUPPORT BEYOND THE THIRD OR SO OF QUEBECERS WHO ARE COMMITTED SEPARATISTS FOR HIS PART MR BOUCHARD ARGUES THAT THE FAILED CONSTITUTIONAL INITIATIVES OF RECENT YEARS SHOW THAT SEPARATION IS THE ONLY WAY TO RECONCILE ENGLISH CANADA'S DESIRE FOR A STRONG CENTRAL GOVERNMENT WITH QUEBEC'S QUEST FOR GREATER CONTROL OVER ITS OWN SOCIETY THERE WAS NOBILITY HE WROTE IN HIS 1992 AUTOBIOGRAPHY IN THE 19TH CENTURY CANADIAN VISION OF TWO NATIONS FLOURISHING ON THE SAME TERRITORY IN EQUALITY AND MUTUAL RESPECT THE DREAM WAS TOO BEAUTIFUL TO BE TRUE 9303040051 930304 TOWERS FINANCIAL FACES EXPANDED SEC FRAUD SUIT BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION DOUBLED THE AMOUNT OF SECURITIES IT ALLEGES WERE FRAUDULENTLY SOLD BY TOWERS FINANCIAL CORP AND ITS CHAIRMAN STEVEN HOFFENBERG IN AN EXPANDED LAWSUIT FILED YESTERDAY THE SEC SAYS THE BILL COLLECTION CONCERN FRAUDULENTLY SOLD MORE THAN 400 MILLION IN SECURITIES TWICE THE AMOUNT ALLEGED IN ITS ORIGINAL SUIT IN ITS AMENDED LAWSUIT THE SEC ALLEGES THAT TOWERS COMMITTED FRAUD BY SELLING 200 MILLION IN BONDS BACKED BY HEALTHCARE RECEIVABLES IN ITS ORIGINAL LAWSUIT FILED LAST MONTH THE SEC RAISED QUESTIONS ABOUT THE USE OF THE BOND MONEY BY TOWERS BUT ONLY ALLEGED FRAUD IN THE SALE OF 215 MILLION IN UNREGISTERED NOTES THE SEC SAYS IN THE NEW LAWSUIT THAT 49 MILLION OF THE BOND MONEY IS UNACCOUNTED FOR THE BONDS AND THE TOWERS SUBSIDIARY THAT ISSUED THEM TOWERS HEALTHCARE RECEIVABLES FUNDING CORP HAVE LONG BEEN CONSIDERED THE JEWELS OF MR HOFFENBERG'S EMPIRE QUESTIONS ABOUT THE WAY TOWERS OPERATED THE HEALTHCARE SUBSIDIARIES PROBABLY WILL MAKE IT MORE DIFFICULT FOR MR HOFFENBERG TO SELL HIS COMPANY AS HE HAS SAID HE WANTS TO DO THE TRUSTEE FOR THE BONDS SHAWMUT BANK CONNECTICUT A UNIT OF SHAWMUT NATIONAL CORP HAS ALREADY SUED TOWERS ALLEGING THAT IT VIOLATED THE TERMS OF THE BONDS ACCORDING TO INFORMATION DEVELOPED BY ERNST & YOUNG THE ACCOUNTING FIRM WORKING FOR THE TRUSTEE TOWERS HAS ONLY PURCHASED 246 MILLION IN HEALTHCARE RECEIVABLES WHILE THE 200 MILLION IN BOND MONEY SHOULD HAVE BEEN USED TO PURCHASE 327 MILLION IN RECEIVABLES ASIDE FROM NAMING TOWERS'S HEALTHCARE UNIT AS DEFENDANTS IN THE EXPANDED LAWSUIT THE SEC ALSO NAMES THE NEW YORK POST PUBLISHING INC NEW YORK POST REALTY INC AND NEW YORK POST CO AS RELIEF DEFENDANTS SUCH A MOVE WILL ALLOW THE SEC TO GO AFTER MONEY THAT MR HOFFENBERG OR TOWERS HAS SPENT IN PURCHASING AND RUNNING THE NEW YORK POST A TABLOID NEWSPAPER ACCORDING TO THE COMPLAINT TOWERS AND MR HOFFENBERG HAVE SPENT 8 MILLION DIRECTLY OR INDIRECTLY ON THE POST UNDER AN AGREEMENT REACHED LAST MONTH MR HOFFENBERG AND TOWERS HAVE TO GET THE COURT'S PERMISSION BEFORE SPENDING ANY MORE MONEY ON THE POST OF THE MONEY SPENT SO FAR 6 MILLION WAS USED TO BUY OUT A LINE OF CREDIT ISSUED TO THE POST BY BANKERS TRUST NEW YORK CO THE SEC HAS ALSO PUT BANKERS TRUST ON NOTICE THAT IT MAY HAVE TO RETURN THE TOWERS MONEY TO INVESTORS BANKERS TRUST WAS NOT NAMED AS A RELIEF DEFENDANT IN THE NEW SUIT MEANWHILE LAWYERS FOR THE POST AND MR HOFFENBERG ARE STILL WORKING OUT DETAILS THAT WILL ALLOW THE TOWERS CHIEF AND HIS PARTNER ABRAHAM HIRSCHFELD A REAL ESTATE DEVELOPER TO COMPLETE THEIR PURCHASE OF THE PAPER MR HOFFENBERG'S LAWYER IRA LEE SORKIN SAID HE HADN'T SEEN THE NEW SEC SUIT AND COULDN'T COMMENT ON IT 9303040050 930304 NO BIG MYSTERY ON ALTERNATIVE TO CLINTON PLAN BY ROBERT L BARTLEY HAVING WON THE WHITE HOUSE THE CONGRESS THE TREASURY THE OMB AND THE CBO BILL CLINTON CHALLENGES HIS CRITICS TO PUT FORTH THEIR OWN PROGRAM THE OBVIOUS REJOINDER IS THAT THE DEMOCRATS HAVE WON AND SHOULD GET ON WITH FORMING A GOVERNMENT WITH A DEFENSE SECRETARY RECENTLY HOSPITALIZED WITHOUT A SECONDINCOMMAND A FORMER LITTLE ROCK MAYOR RUNNING JUSTICE BEHIND THE SCENES AND AN UNELECTED FIRST LADY COOKING UP A HEALTH PLAN WITH A COVEN OF UNAPPOINTED ADVISERS WHO IS THERE TO TALK TO ABOUT ALTERNATIVES BUT ON WHETHER MR CLINTON AND THE DEMOCRATS HAVE THE CAPACITY TO GOVERN SUSPEND DISBELIEF THE PRESIDENTINNAME HAS ALLEGED A PLAN FOR THE ECONOMY HE WANTS TO RAISE EVERY TAX IN SIGHT AND THE REST OF THEM LATER THIS WILL PRODUCE MORE JOBS AND ECONOMIC GROWTH HE PROMISES AND REDUCE THE DEFICIT ALSO HE PROPOSES A BUNCH OF PORK BARREL PROGRAMS AS A STIMULUS WHAT COULD BE THE ALTERNATIVE CONCEIVABLY WELL INDEED THE PROGRAM WOULD SEARCH THE TAX CODE FOR MARGINAL RATES THAT CAN BE REDUCED TO IMPROVE INCENTIVES WITHOUT HARMING GOVERNMENT REVENUES THE OBVIOUS EXAMPLE IS THE CAPITAL GAINS TAX HISTORICALLY SUPERSENSITIVE TO TAX RATES AND HISTORICALLY THE BIG REWARD FOR ENTREPRENEURIAL CREATIVITY GIVEN WIDE AGREEMENT ON THE NEED FOR INCREASED SAVINGS AND INVESTMENT THE PROGRAM WOULD PROPOSE A SUPERIRA ALLOWING TAX EXCLUSION FOR ANY SAVINGS BUT ENSURING FAIRNESS BY TAXING WITHDRAWALS FROM SAVINGS AT THE USUAL PROGRESSIVE RATES IN IMPLEMENTING OBJECTIVE TWO THE FIRSTLINE MECHANISM WOULD NOT BE A LIST OF SPENDING CUTS FOR A ONETIME HAGGLE BUT REVERSING THE PROCEDURAL CHANGES IN THE 1974 ACT TO LEVEL THE SCALES ON HAGGLING THROUGHOUT THE NORMAL BUDGET CYCLE THE ALTERNATIVE PROGRAM WOULD OUTLAW ANY OFFICIAL CALCULATION OF A CURRENT SERVICES BUDGET WHICH SOMETIMES COUNTS MORE SPENDING THAN LAST YEAR AS A CUT THE STARTING POINT FOR VOTES ON THIS YEAR'S GOVERNMENT BUDGET WOULD BE LAST YEAR'S BUDGET AS IT IS IN THE NATION'S BUSINESSES AND HOUSEHOLDS TO CLARIFY RESPONSIBILITY AND END GRIDLOCK THE EXECUTIVE BRANCH WOULD BE GRANTED EXPANDED RESCISSION OR ITEMVETO POWERS THE PRESIDENT COULD REDUCE SPECIFIC APPROPRIATIONS AS HE DEEMED FIT AND CONGRESS WOULD HAVE TO TAKE A SEPARATE VOTE ON RAISING THESE AMOUNTS A TWOTHIRDS MAJORITY COULD BE REQUIRED AS NECESSARY AS IT WOULD BE UNDER A BALANCEDBUDGET REQUIREMENT FOR A TOTAL SPENDING INCREASE EXCEEDING GDP GROWTH REMEMBER IN MOST OF THE WORLD'S DEMOCRACIES GOVERNMENTS FALL IF THE LEGISLATURE REJECTS THE EXECUTIVE BUDGET THE SPECIAL PROBLEM OF GOVERNMENT SPENDING ON MEDICAL CARE WOULD BE CONTAINED BY HAVING RECIPIENTS PAY A GREATER PART OF THE BILL INTRODUCING AN ELEMENT OF SELFRATIONING THROUGH PRICES THIS NEED NOT EXCLUDE SPECIAL MEASURES FOR THE CARE OF INDIGENTS THOUGH THE MENTALLY ILL DRUG ABUSERS AND CLINICAL ALCOHOLICS WOULD BE SUBJECT TO INVOLUNTARY COMMITMENT WHEN NECESSARY AND COSTEFFECTIVE SOCIAL SECURITY PAYMENTS TO CURRENT RECIPIENTS WOULD BE CONTINUED AT CURRENT LEVELS THOUGH AS IT ONCE DID CONGRESS WOULD HAVE TO VOTE ON YEARLY COSTOFLIVING INCREASES IF NEEDED TO PRESERVE THE ACTUARIAL BALANCE OF THE SOCIAL SECURITY SYSTEM THE ALTERNATIVE PROGRAM WOULD CONTEMPLATE SOME REDUCTION IN THE PROGRAMMED RATE OF GROWTH FOR INITIAL BENEFITS OF FUTURE RETIREES FREEZING THE BENEFITS THE PRESENT GENERATION WILL CLAIM TO WHAT CURRENT RETIREES GET ADJUSTED FOR INFLATION WOULD SAVE TONS OF MONEY FOR OUR CHILDREN AND GRANDCHILDREN UNDER THE ALTERNATIVE PLAN THE FEDERAL RESERVE WOULD BE REQUIRED BY STATUTE TO DIRECT MONETARY POLICY AT PRICE STABILITY THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD BE PROMPTLY RATIFIED AND THE URUGUAY ROUND PRESSED THE EFFICIENCY OF THE AMERICAN ECONOMY WOULD BE IMPROVED BY INSTITUTING THE WORLDSTANDARD RULE THAT IN LITIGATION THE LOSER PAYS COURT COSTS OF BOTH PARTIES THE EDUCATIONAL PERFORMANCE ESSENTIAL TO FUTURE ECONOMIC PROGRESS WOULD BE IMPROVED BY DEREGULATING EDUCATION THROUGH CHOICE PROGRAMS INCLUDING PRIVATE SCHOOLS THE ENVIRONMENT SAFETY AND SPECIES SURVIVAL WOULD CONTINUE TO BE PROTECTED BY FEDERAL RULEMAKING SUBJECT OF COURSE TO PREPARATION OF AN ECONOMIC IMPACT STATEMENT THE ALTERNATIVE PROGRAM IN SHORT IS ANYTHING BUT A MYSTERY ITS PRINCIPLES WERE WELL ENOUGH UNDERSTOOD BY THE NEW DEMOCRATS MR CLINTON PROFESSED TO CHAMPION DURING HIS CAMPAIGN ON THE BASIS OF HIS 43 MANDATE HE NOW PROPOSES TO LEAD THE NATION IN WILDLY DIFFERENT DIRECTIONS BUT IF HIGHER TAXES DON'T HELP THE ECONOMY OR CURB THE DEFICIT THE ALTERNATIVE PROGRAM WILL STILL BE THERE IT WOULD BE HEALTHIER FOR THE REPUBLIC AND IN THE LONG RUN FOR MR CLINTON TO START DISCUSSING IT SERIOUSLY NOW PROVIDED TO RETURN TO IMMEDIATE REALITY WE EVENTUALLY GET A CREDIBLE GOVERNMENT TO TALK WITH PERHAPS EVEN ONE CAPABLE OF STARTING TO LEARN BEFORE RUNNING OVER A CLIFF MR BARTLEY IS EDITOR OF THE JOURNAL 9303040049 930304 ADVERTISING FOR JOBS SLIPPED IN JANUARY CONFERENCE BOARD SAYS NEW YORK HELPWANTED ADVERTISING FELL SLIGHTLY IN JANUARY DESPITE SOME SIGNS OF AN ECONOMIC RECOVERY THE CONFERENCE BOARD REPORTED THE FIGURES ARE BASED ON A SURVEY OF HELPWANTED ADVERTISING IN 51 MAJOR US NEWSPAPERS HELPWANTED AD VOLUME HAS PROVEN TO BE SENSITIVE TO LABOR MARKET CONDITIONS THE ECONOMIC RECOVERY IS NOT TRIGGERING A JOBS RECOVERY LIKE PATTERNS SEEN IN THE PAST SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN THIS SUGGESTS THAT ONCE GENUINE LABOR MARKET RECOVERY DOES DEVELOP WHICH MAY TAKE UNTIL THIS SUMMER NEW JOB OPENINGS WILL NOT BE AS STRONG IN THIS EXPANSION AS IN THE PAST HE ADDED THAT NO MORE THAN MODEST JOB GROWTH COULD BE EXPECTED FOR THE REST OF 1993 1994 AND PERHAPS MUCH OF 1995 ADVERTISING ROSE IN FOUR REGIONS AND FELL IN FIVE THE INDEX FOR NEW ENGLAND ROSE SUBSTANTIALLY TO 69 FROM 63 EAST NORTH CENTRAL ROSE TO 66 FROM 61 WEST NORTH CENTRAL CLIMBED TO 79 FROM 74 AND WEST SOUTH CENTRAL WAS UP TO 166 FROM 162 STEEPEST DECLINES WERE REGISTERED IN THE INDEXES FOR THE MIDDLE ATLANTIC REGION WHICH FELL TO 41 FROM 46 AND THE PACIFIC REGION WHICH FELL TO 125 FROM 137 THE CONFERENCE BOARD IS A NONPROFIT BUSINESSSUPPORTED RESEARCH ORGANIZATION 9303040048 930304 KUWAIT'S OIL PRODUCTION RISES RAPIDLY EMIRATE TO ASK HIGHER QUOTA IN SUMMER BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL KUWAIT'S OFFICIAL OILPRODUCTION FIGURES FOR THE PAST 14 MONTHS SUPPORT ITS RECENT CLAIMS THAT ITS OUTPUT WAS RISING MUCH FASTER THAN GENERALLY ESTIMATED ACCORDING TO DETAILED STATISTICS FOR EACH MONTH DATING BACK TO JANUARY 1992 RELEASED YESTERDAY BY KUWAIT PETROLEUM CORP THE STATEOWNED OIL COMPANY THE PERSIAN GULF EMIRATE PRODUCED SLIGHTLY MORE THAN TWO MILLION BARRELS A DAY IN FEBRUARY THAT WAS UP FROM 18 MILLION BARRELS A DAY IN JANUARY AND MORE THAN TRIPLE THE 584000 BARRELS A DAY KUWAIT WAS PRODUCING A YEAR EARLIER BUT KUWAIT'S OIL OUTPUT HAS BEEN RISING RAPIDLY MONTHBYMONTH AND AS A RESULT THE EMIRATE RECENTLY HAS EMERGED AS A SIGNIFICANT FACTOR IN THE WORLD OIL INDUSTRY BECAUSE ITS OWN OIL INDUSTRY WAS RECOVERING FROM THE DAMAGES OF THE PERSIAN GULF WAR KUWAIT HAD BEEN FREE UNTIL RECENTLY FROM ANY PRODUCTION RESTRAINTS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BUT KUWAITI OIL OFFICIALS RELUCTANTLY AGREED LAST MONTH TO ACCEPT A NEW OPEC QUOTA OF 16 MILLION BARRELS A DAY EVEN THOUGH THEY ARGUED THAT MEANT THE EMIRATE WOULD HAVE TO CUT ITS OUTPUT BY SOME 400000 BARRELS A DAY ALTHOUGH OTHERS IN OPEC EXPRESSED DOUBT KUWAIT WAS PRODUCING AS MUCH AS IT CLAIMED THE EMIRATE'S ACCEPTANCE OF A QUOTA HELPED THE OIL MINISTERS TO COMPLETE A PRODUCTION ACCORD INTENDED TO REDUCE TOTAL OUTPUT BY SOME 14 MILLION BARRELS A DAY WHETHER OPEC WILL REACH THAT GOAL REMAINS TO BE SEEN ALTHOUGH OIL PRICES HAVE FIRMED IN RECENT DAYS ON THE ANTICIPATION OF SUCH CUTS THE NEW FOURMONTH OPEC PRODUCTION CEILING OF 236 MILLION BARRELS A DAY BECAME EFFECTIVE MONDAY AND SEVERAL OF THE LEADING EXPORTERS INCLUDING SAUDI ARABIA AND IRAN HAVE ADVISED CUSTOMERS THAT MARCH VOLUMES WERE BEING REDUCED AND A FEW DAYS AGO ALI AHMAD ALBAGHLI THE KUWAITI OIL MINISTER CONFIRMED KUWAIT WAS REDUCING ITS PRODUCTION THIS MONTH IN LINE WITH ITS NEW QUOTA YESTERDAY IN CARACAS VENEZUELA KUWAIT'S INFORMATION MINISTER SAOUD NASSER ALSABAH ALSO SAID KUWAIT WOULD ABIDE BY ITS NEW OPEC QUOTA BUT WOULD PUSH FOR A HIGHER PRODUCTION ALLOTMENT IN THE SUMMER ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT MR ALSABAH ON A THREEDAY VISIT TO VENEZUELA SAID THIS EVENTUAL HIGHER QUOTA IS STILL TO BE DISCUSSED IN THE FUTURE STILL WITHIN OPEC AND THE OIL INDUSTRY ESTIMATES OF KUWAIT'S PRODUCTION CONTINUE TO LAG BEHIND THOSE CLAIMED BY MR ALBAGHLI FOR FEBRUARY MOST OUTSIDE ESTIMATES PLACE KUWAIT'S OUTPUT AT BETWEEN 15 MILLION AND 17 MILLION BARRELS A DAY A SIMILAR ESTIMATE IS EXPECTED FROM THE INTERNATIONAL ENERGY AGENCY WHEN IT RELEASES ITS MONTHLY OIL MARKET REPORT WHICH IS DUE OUT SHORTLY THE UNCHARACTERISTIC RELEASE YESTERDAY OF THE EMIRATE'S OFFICIAL PRODUCTION FIGURES MAY HAVE BEEN INTENDED TO COUNTER SUCH ESTIMATES WITHIN KUWAIT'S BORDERS ACCORDING TO THE REPORT BY KUWAIT PETROLEUM CORP FEBRUARY PRODUCTION AVERAGED SLIGHTLY MORE THAN 18 MILLION BARRELS A DAY ADDITIONALLY IN THE SOCALLED NEUTRAL ZONE SHARED WITH SAUDI ARABIA KUWAIT'S SHARE OF OUTPUT IN FEBRUARY WAS REPORTED AT 191000 BARRELS A DAY THE COMBINED FIGURES GAVE KUWAIT TOTAL PRODUCTION OF JUST OVER TWO MILLION BARRELS A DAY FOR FEBRUARY FOR THE FIRST TWO MONTHS OF THE YEAR ACCORDING TO KUWAIT PETROLEUM PRODUCTION AVERAGED 19 MILLION BARRELS A DAY UP FROM SLIGHTLY LESS THAN 15 MILLION A DAY IN THE 1992 FOURTH QUARTER 9303040047 930304 INTERNATIONAL WORLD WIRE BY RICHARD L HOLMAN HONG KONG PRESENTED A BUDGET PACKED WITH ROSY FORECASTS GENEROUS TAX BREAKS AND GOODWILL GESTURES TOWARD CHINA WITH WHICH ECONOMIC LINKS ARE MUSHROOMING THE BUDGET FOR THE YEAR STARTING APRIL 1 OFFERS BREAKS FOR 90 OF HONG KONG'S 16 MILLION SALARIED WORKERS BY RAISING THE TAX THRESHOLD IT REDUCES THE STAMP DUTY ON STOCK TRADING AND ELIMINATES THE 30 COSMETICS IMPORT DUTY AND A RACETRACK ENTRANCE LEVY ALONG WITH MORE FUNDING FOR TRADE AND TOURISM DEVELOPMENT AND INCREASES IN AID TO THE NEEDY THE MEASURES ADD UP TO THE FIRST DEFICIT SINCE FISCAL 1986 USING THE CASH HOARD IT BUILT UP OVER THE PAST DECADE HONG KONG CAN EASILY AFFORD THE PROJECTED DEFICIT OF 336 BILLION HONG KONG DOLLARS US4345 MILLION BASED ON SPENDING OF HK15339 BILLION UP 33 FROM THIS YEAR'S ESTIMATE AND REVENUES OF HK15003 BILLION UP 6 IT ANTICIPATES A BIG FISCAL 1993 SURPLUS WILL SWELL ACCUMULATED RESERVES TO HK1196 BILLION A ROBUST ECONOMY HELPS TOO GROSS DOMESTIC PRODUCT WHICH EXPANDED AN INFLATIONADJUSTED 5 LAST YEAR IS PROJECTED TO ACCELERATE 55 THIS YEAR VOWING TO CLEAR UP UNCERTAINTY CAUSED BY A SINOBRITISH DISPUTE ABOUT DEMOCRACY IN HONG KONG GOV CHRIS PATTEN SAID HE MAY ADDRESS A SPECIAL SESSION OF THE BRITISH COLONY'S LEGISLATURE TOMORROW SUSPENSE HAS BEEN MOUNTING SINCE MIDFEBRUARY WHEN BRITAIN AND CHINA INDICATED THEY WANTED TO NEGOTIATE AN END TO THE FIVEMONTH DISPUTE OVER ELECTORAL CHANGES THAT CHINA OPPOSES AND THAT HAS SHAKEN CONFIDENCE IN HONG KONG'S 1997 TRANSITION TO CHINESE RULE MR PATTEN POSTPONED A TRIP TO JAPAN TO DEAL WITH THE ISSUE RUSSIA PLANS TO PRIVATIZE THE ZIL FACTORY WHICH MAKES THE ARMORED LIMOUSINES THAT WERE A PERQUISITE FOR THE FORMER SOVIET UNION'S COMMUNIST ELITE THREE MILLION ZIL SHARES WILL BE SOLD FOR 1000 RUBLES 154 EACH THE STATE WILL ACCEPT PRIVATIZATION VOUCHERS THAT THE GOVERNMENT GAVE RUSSIANS IN ITS PURSUIT OF A MARKET ECONOMY ZIL FOUNDED IN THE LATE 1920S WHEN THE DICTATOR JOSEF STALIN INITIATED AN INDUSTRIALIZATION PROGRAM ALSO PRODUCES LONGDISTANCE TRUCKS AND HOUSEHOLD APPLIANCES DESPITE PERU'S FREEMARKET REFORMS US BUSINESSES ARE WARY OF INVESTING IN THE COUNTRY THE US COMMERCIAL ATTACHE IN LIMA SAID MANY POTENTIAL INVESTORS ARE PUT OFF BY THE COST OF SECURITY AGAINST ATTACKS BY SHINING PATH REBELS CHARLES BRAYSHAW TOLD THE FINANCIAL DAILY GESTION BUT HE NOTED PHYSICAL RISKS TO INVESTMENTS IN SECTORS SUCH AS OIL EXPLORATION ARE RELATIVELY SMALL PRESIDENT ALBERTO FUJIMORI HAS ALLOWED FOREIGN FIRMS TO REPATRIATE PROFITS MADE GUARANTEES AGAINST EXPROPRIATION AND BEGUN A PRIVATIZATION PROGRAM DRIVERS OF LONDON'S 16500 BLACK TAXIS FACE AN ASSAULT ON THEIR LIVELIHOOD BY UNLICENSED AND UNINSURED CABS WITH 1 IN 10 BRITONS JOBLESS HUNDREDS OF PEOPLE ARE OFFERING RIDES IN THEIR OWN CARS SOME THROUGH MINICAB FLEETS WITH FARES HALF TO TWOTHIRDS THOSE OF BLACK TAXIS ILLEGAL CABS HAVE CUT BY AS MUCH AS A THIRD THE EARNINGS OF THE 22000 LICENSED CABBIES WHO MUST PASS CHARACTER AND CRIMINAL CHECKS AND TRAIN FOR TWO TO THREE YEARS TO ACQUIRE AN EXACTING KNOWLEDGE OF LONDON FUEL SHORTAGES AT THREE OF CUBA'S POWER STATIONS CAUSED A SHARP EXPANSION OF ELECTRICITY CUTS ACROSS THE COUNTRY THIS WEEK IN HAVANA POWER OUTAGES MONDAY AND TUESDAY LASTED MORE THAN SIX HOURS TWICE AS LONG AS USUAL THE COLLAPSE OF COMMUNISTRULED CUBA'S TRADE AND AID TIES WITH THE FORMER SOVIET UNION HAS MORE THAN HALVED THE ISLAND'S OIL IMPORTS SINCE 1989 BECAUSE OF THE OIL SHORTAGE CUBA HAS STOPPED DISTRIBUTING GASOLINE RATIONS TO MOTORISTS AND IS GIVING ENERGY PRIORITY TO THE SUGAR HARVEST TO BE OFFERED IN DEALS FOR OIL HOME PRICES IN BRITAIN LAST MONTH FELL 14 FROM JANUARY AND 64 FROM A YEAR EARLIER FOLLOWING JANUARY'S 12 MONTHTOMONTH RISE THE DATA SIGNALED STABILITY MAY BE RETURNING TO THE SECTOR PRICES AVERAGED 51785 74933 IN FEBRUARY DOWN FROM 52507 IN JANUARY AND FROM 55308 IN FEBRUARY 1992 THE NATIONWIDE MORTGAGE LENDER SAID THE BUILDING SOCIETY'S SURVEY CITED CAUTIOUS OPTIMISM ABOUT THE BATTERED HOUSING SECTOR NOTING INCREASES IN POTENTIAL BUYERS AND IN PURCHASES THE FINDINGS ECHO THOSE OF THE HALIFAX BUILDING SOCIETY BRITAIN'S LARGEST MORTGAGE LENDER WHICH SAID FEBRUARY HOME PRICES FELL A SEASONALLY ADJUSTED 03 FROM JANUARY AND DROPPED 72 FROM A YEAR EARLIER HALIFAX TOO SAW SIGNS OF STABILITY RESURFACING BRITISH HOME PRICES HAVE BECOME A MORE SIGNIFICANT ECONOMIC MEASURE SINCE THE GOVERNMENT SAID LAST FALL IT WOULD FACTOR THEM INTO DECISIONS ON CREDIT POLICY AS IT WRESTLED WITH RECESSION SOUTH KOREA'S STATERUN EXPORTIMPORT BANK IN ITS FIRST ECONOMIC COOPERATION LOAN IN EAST EUROPE WILL EXTEND 50 MILLION TO POLAND FOR TELECOMMUNICATIONS MODERNIZATION THE 20YEAR LOAN AT 42 INTEREST WILL BE USED TO BUY DIGITAL ELECTRONIC SWITCHBOARDS FROM KOREAN COMPANIES FOREIGNERS TREATED IN IRAQI HOSPITALS MUST PAY THEIR BILLS IN HARD CURRENCY ALREADY REQUIRED BY HOTELS AFTER 2 1/2 YEARS OF UNITED NATIONS SANCTIONS IRAQ'S HEALTHCARE SYSTEM IS IN DISARRAY AND AN OFFICIAL HAS SAID 90 OF HOSPITAL EQUIPMENT ISN'T OPERATING BECAUSE OF LACK OF SPARE PARTS 9303040046 930304 WHO'S NEWS EMULEX CORP EMULEX CORP COSTA MESA CALIF GARY E LIEBL A PRIVATE INVESTOR WAS ELECTED A DIRECTOR OF THIS MAKER OF COMPUTER STORAGE AND NETWORKING PRODUCTS THE APPOINTMENT OF MR LIEBL 50 YEARS OLD INCREASES THE BOARD TO SIX 9303040045 930304 MARKETING BRIEF NOTED WHO'S NEWS WALT DISNEY CO NAMED 32YEAROLD MICHAEL WIDMAN TO THE NEWLY CREATED POST OF VICE PRESIDENT CORPORATE ALLIANCES HE WAS SENIOR COUNSEL 9303040044 930304 BUSINESS BRIEF DSC COMMUNICATIONS CORP COMPANY SAYS NYNEX SIGNS CONTRACT FOR EQUIPMENT DSC COMMUNICATIONS CORP PLANO TEXAS SAID NYNEX CORP SIGNED A TWOYEAR CONTRACT FOR TELECOMMUNICATIONS EQUIPMENT TERMS WEREN'T DISCLOSED BUT AN ANALYST ESTIMATED THE DEAL COULD HAVE A VALUE OF CLOSE TO 100 MILLION DSC SAID THE CONTRACT WAS THE SECOND MAJOR COMMITMENT BY A REGIONAL TELEPHONE COMPANY FOR ITS LITESPAN2000 WHICH IS FIBERBASED OPTICAL DIGITAL LOOP CARRIER EQUIPMENTELECTRONICS INSTALLED BETWEEN A PHONE COMPANY'S CENTRAL OFFICE AND THE BUSINESS OR HOME PHONE LAST YEAR AMERITECH CORP SIGNED A THREEYEAR DEAL FOR LITESPAN2000 DSC SEEMS TO BE IN THE LEAD FOR NEXTGENERATION DIGITAL LOOP CARRIER SYSTEMS SAID MICHAEL BALHOFF AN ANALYST AT LEGG MASON WOOD WALKER INC DSC A MAKER OF DIGITAL TELECOMMUNICATIONS SWITCHING AND TRANSMISSION PRODUCTS WITH 1992 REVENUE OF 5363 MILLION SAID NYNEX PLANS TO SERVE AS MANY AS 500000 TELEPHONE LINES BY 1995 WITH THE NEW SYSTEM MR BALHOFF ESTIMATED THAT EACH LINE WOULD HAVE A VALUE OF CLOSE TO 200 TO DSC OR A TOTAL OF 100 MILLION IN NATIONAL OVERTHECOUNTER TRADING DSC CLOSED AT 26125 UP 50 CENTS MR BALHOFF SAID THE NYNEX CONTRACT WAS ANTICIPATED BY WALL STREET AND HE WASN'T REVISING HIS ESTIMATED 1993 EARNINGS OF 110 A SHARE FOR THE COMPANY 9303040043 930304 BUSINESS BRIEF MCDONNELL DOUGLAS CORP COMPANY TO PAY 21 MILLION TO SETTLE FEDERAL CHARGES MCDONNELL DOUGLAS CORP AGREED TO PAY THE FEDERAL GOVERNMENT 21 MILLION TO SETTLE CHARGES OF IMPROPER CONDUCT ARISING FROM THE SALE OF ASSAULT WEAPONS TO THE ARMY THE JUSTICE DEPARTMENT SAID THE DEPARTMENT SAID THE ST LOUISBASED COMPANY VIOLATED THE FALSE CLAIMS ACT BY NOT DISCLOSING REQUIRED COST OR PRICING INFORMATION ON THE SHOULDERLAUNCHED MULTIPURPOSE ASSAULT WEAPON A MCDONNELL DOUGLAS SPOKESWOMAN SAID THE COMPANY DENIED ANY WRONGDOING AND THAT IT SOUGHT THE SETTLEMENT AS THE BEST WAY TO RESOLVE THE ISSUES THE GOVERNMENT ASSERTED THAT THE COMPANY FAILED TO INFORM THE ARMY THAT IT WOULD RECEIVE CERTAIN REIMBURSEMENT FROM ONE OF ITS VENDORS IN DEVELOPING THE WEAPON IN ADDITION IT SAID MCDONNELL DOUGLAS FAILED TO INFORM THE GOVERNMENT THAT IT HAD CHANGED THE PROVISIONS OF A SUBCONTRACT WITH ITS MAIN SUPPLIER RESULTING IN HUNDREDS OF THOUSANDS OF DOLLARS IN SAVINGS IN TRANSPORTATION COSTS A MCDONNELL DOUGLAS SPOKESWOMAN SAID THE COMPANY DENIED ANY WRONGDOING SHE SAID THE COMPANY SOUGHT THE SETTLEMENT AS THE BEST WAY TO RESOLVE THE ISSUES 9303040042 930304 ABREAST OF THE MARKET DROP IN LONGTERM YIELDS BOOSTS STOCKS LIFTING INDUSTRIALS BY 351 BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FALLING LONGTERM INTEREST RATES GAVE SHARE PRICES A MODEST BOOST THE DOW JONES INDUSTRIAL AVERAGE ROSE A MERE 351 POINTS TO 340404 IN HEAVY TRADING REFLECTING LOSSES IN SOME OIL ISSUES STANDARD & POOR'S 500STOCK INDEX GAINED 136 TO 44926 JUST SHY OF ITS RECORD OF 44956 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 087 TO 24741 ALSO A FRACTION AWAY FROM ITS ALLTIME HIGH VOLUME ON THE BIG BOARD WAS ROBUST WITH 272290000 SHARES CHANGING HANDS UP FROM 269640000 SHARES TUESDAY AND 1296 ISSUES ADVANCED ON THE BIG BOARD COMPARED WITH ONLY 632 DECLINERS LON GORMAN COHEAD OF EQUITY TRADING AT FIRST BOSTON NOTED THAT STOCK PRICES HAVE BEEN INCHING HIGHER EVEN THOUGH MANY ON WALL STREET ARE SKITTISH ABOUT THE MARKET BUT HE POINTED OUT THAT WITH INTEREST RATES SO LOW STOCKS LOOK PARTICULARLY ENTICING YESTERDAY AS THE YIELD ON THE TREASURY'S 30YEAR BOND TUMBLED TO 678 FROM 683 THE RETURN ON STOCKS APPEARED EVEN MORE APPEALING WHILE THERE IS A WALL OF WORRY WE MANAGE TO KEEP CLIMBING THAT WALL EVERY DAY AND EVERY WEEK HE SAID OTHER ANALYSTS SAID ONE OF THE REASONS STOCKS HAVE BEEN CLIMBING RECENTLY IS THAT EVEN BEARISH MONEY MANAGERS ARE RELUCTANT TO LET CASH PILE UP WITH THE END OF THE FIRST QUARTER APPROACHING AND STOCK PRICES NEAR THEIR ALLTIME HIGHS MONEY MANAGERS WANT TO BE AS FULLY INVESTED AS POSSIBLE MR GORMAN SAID THAT ALTHOUGH THE MARKET AS A WHOLE HASN'T SUFFERED FROM A MAJOR CORRECTION THERE ARE INDIVIDUAL CORRECTIONS OCCURRING EACH DAY IN CERTAIN STOCKS AND INDUSTRY GROUPS AND THAT TREND MR GORMAN SAID IS HEALTHY FOR STOCKS AMONG THE GROUPS THAT WERE UNDER SIEGE BY INVESTORS YESTERDAY WERE OIL STOCKS TEXACO SLUMPED 2 TO 62 1/4 EXXON SLIPPED 1/2 TO 64 AND CHEVRON SLID 1 3/4 TO 78 THE STOCKS HAD POSTED STRONG GAINS RECENTLY ALTHOUGH THE DOW JONES TRANSPORTATION AVERAGE RALLIED 1451 POINTS TO 151367 AIRLINE STOCKS WERE BATTERED BY SELLING UAL THE PARENT OF UNITED AIRLINES SANK 7/8 TO 115 3/8 AMR PARENT OF AMERICAN AIRLINES DROPPED 1 3/8 TO 58 AND DELTA AIR LINES SLID 1/4 TO 48 7/8 BUT OTHER CYCLICAL STOCKS FARED WELL A MORGAN STANLEY INDEX OF CYCLICAL ISSUES ROSE 270 TO 25923 SIGNIFICANTLY OUTPERFORMING THE FIRM'S INDEX OF CONSUMER STOCKS ALLIEDSIGNAL JUMPED 2 1/8 TO 67 3/4 GOODYEAR TIRE & RUBBER SURGED 1 1/2 TO 71 1/8 EATON SOARED 1 7/8 TO 81 3/4 AND KIMBERLYCLARK ROSE 1 TO 56 TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST A SUBSIDIARY OF HONGKONG & SHANGHAI BANK SAID THE MARKET IS AT A CROSSROADS RIGHT NOW INVESTORS HAVE BEEN ASSESSING STOCK PRICES BASED ON 1980S VALUATION LEVELS WHEN INFLATION WAS SIGNIFICANTLY STRONGER AND INTEREST RATES WERE MUCH HIGHER BUT MR LOVE SAID INVESTORS NEED TO CONSIDER THE BENEFITS OF LOWER INTEREST RATES AND SUBDUED INFLATION ONCE THEY DO HE SAID THEY WILL REALIZE THAT STOCKS WHILE SUSCEPTIBLE TO A NEARTERM CORRECTION ARE POISED TO MOVE HIGHER IN THE LONG TERM A DROP IN INTEREST RATES HELPED STOCKS OF MORTGAGE COMPANIES FEDERAL NATIONAL MORTGAGE ASSOCIATION GAINED 1 TO 82 FEDERAL FEDERAL HOME LOAN MORTGAGE INCHED UP 1/4 TO 48 1/4 AND COUNTRYWIDE CREDIT INDUSTRIES ROSE 1 1/8 TO 34 7/8 STOCKS OF SOME TECHNOLOGY COMPANIES ALSO CAME TO LIFE INTERNATIONAL BUSINESS MACHINES ADDED 1 TO 55 1/4 DIGITAL EQUIPMENT WAS UP 3/4 TO 46 7/8 HEWLETTPACKARD BOUNCED UP 3/4 TO 76 AND MOTOROLA SAILED 2 POINTS HIGHER TO 60 READER'S DIGEST CLASS A SHARES SLUMPED 2 3/4 TO 49 1/8 THE STOCK CAME UNDER SELLING PRESSURE AFTER A JOSEPHTHAL LYON & ROSS ANALYST SAID THAT THE PUBLISHER'S EARNINGS FOR THE FISCAL THIRD QUARTER ENDING THIS MONTH MIGHT BE FLAT A YEAR EARLIER THE COMPANY EARNED 906 MILLION OR 75 CENTS A SHARE ENGELHARD LOST 2 3/8 TO 41 MERRILL DOWNGRADED THE STOCK TO SHORTTERM NEUTRAL FROM ABOVE AVERAGE RAYONIER TIMBERLANDS CLASS A TUMBLED 5 5/8 TO 34 1/8 THE UNITS FELL AFTER A NEW YORK TIMES COLUMN POINTED OUT THAT UNIT HOLDERS' PERCENTAGE SHARE OF CASH FLOW WILL FALL TO 4 BY THE YEAR 2000 AT THAT TIME THE PRICE OF THE UNITS IS EXPECTED TO FALL PRECIPITOUSLY IN VALUE TO REFLECT THAT CHANGE TYCO TOYS CLIMBED 5/8 TO 13 1/4 TRADERS AND A SALOMON BROTHERS ANALYST CITED TAKEOVER RUMORS APPARENTLY FOCUSING ON A MERGER WITH MATTEL INC NEITHER COMPANY WOULD COMMENT BUT TWO ANALYSTS LAST NIGHT DISMISSED THE RUMORS AS UNFOUNDED GENERAL CINEMA ADVANCED 1 1/2 TO 35 5/8 THE COMPANY HAD FISCAL FIRSTQUARTER OPERATING PROFIT OF 40 CENTS A SHARE COMPARED WITH 34 CENTS A YEAR EARLIER QUANEX ADDED 1 TO 16 7/8 MERRILL RAISED ITS SHORTTERM RATING ON THE STOCK TO ABOVE AVERAGE FROM NEUTRAL SENSORMATIC ELECTRONICS LEAPED 1 5/8 TO 36 3/4 SOME ANALYSTS SAID INVESTORS WERE BIDDING UP THE SHARES IN ANTICIPATION OF A POSSIBLE ENDORSEMENT OF THE COMPANY'S ANTITHEFT TECHNOLOGY BY A NATIONAL RETAILING GROUP 9303040041 930304 LETTERS TO THE EDITOR GAYS IN MILITARY PROUDLY WE SERVE IN KEEP THE MILITARY'S HOMOSEXUAL BAN EDITORIAL PAGE FEB 1 MAJ MELISSA WELLSPETRY SUBMITS FIVE REASONS FOR FAVORING THE BAN AS A 1985 US NAVAL ACADEMY GRADUATE LIEUTENANT IN THE ACTIVE NAVAL RESERVES AND A LESBIAN I FIND HER ARGUMENTS UNFOUNDED AND ALARMIST HER FIRST ASSERTION THAT HOMOSEXUALS HAVE NO MORE RIGHT TO SERVE THAN THOSE OF OTHER EXCLUDED CATEGORIES SUCH AS OVERWEIGHT OR PHYSICALLY HANDICAPPED IGNORES THE FACT THAT THESE LIMITATIONS MAKE ONE INCAPABLE OF PERFORMING MILITARY DUTIES ONE'S SEXUAL ORIENTATION HAS NO IMPACT ON JOB PERFORMANCE IN FACT VICE ADM JOSEPH DONNELL COMMANDER OF THE US ATLANTIC FLEET ACKNOWLEDGED IN A 1990 MEMO TO HIS SHIPS' COMMANDING OFFICERS THAT FEMALE HOMOSEXUALS ARE HARDWORKING CAREERORIENTED WILLING TO PUT IN LONG HOURS ON THE JOB AND AMONG THE COMMAND'S TOP PROFESSIONALS LET'S SEPARATE PURE DISCRIMINATION FROM WHAT IS LEGITIMATE DISQUALIFICATION THE AUTHOR NEXT SUBMITS THAT THE COURTS GENERALLY HAVE NOT RECOGNIZED SEXUAL ORIENTATION IN TERMS OF CIVIL RIGHTS MOSTLY THIS IS BECAUSE MORE THAN 70 OF FEDERAL COURT JUDGES WERE SELECTED BY THE REAGAN/BUSH ADMINISTRATIONS THE TIDE IS CHANGING HOWEVER WITH THE RECENT MEINHOLD AND PRUITT DECISIONS COURTS ARE FORCING THE DEFENSE DEPARTMENT TO PROVIDE RATIONAL BASIS FOR THEIR DISCRIMINATION AND NOT JUST SUPPOSITION HER THIRD ARGUMENT CITING THE MEDICAL CONSEQUENCES OF HOMOSEXUAL BEHAVIOR FAILS TO ACKNOWLEDGE THAT TENS OF THOUSANDS OF GAY MEN AND LESBIANS SERVE TODAY AND THE MILITARY IS NOT FACING THE MEDICAL CRISES OF SEXUALLY TRANSMITTED DISEASES STDS THAT SHE HAS PREDICTED HER EVIDENCE IS DATED SEVEN YEARS OLD AND SKEWED IRONICALLY CURRENT MEDICAL EVIDENCE SHOWS FEMALE HOMOSEXUALS HAVE BY FAR THE LEAST INCIDENCE OF STDS SEVERAL MAGNITUDES OF ORDER LESS THAN THEIR MALE HETEROSEXUAL COUNTERPARTS SHOULD WE BAN ALL STRAIGHT MEN AND KEEP THE LESBIANS MAJ WELLSPETRY'S FOURTH POINT ASSERTS THAT IT IS FRUITLESS TO FORBID ONDUTY HOMOSEXUAL CONDUCT SINCE GAY SERVICE MEMBERS CAN'T SEEM TO CONTROL THEMSELVES EVEN AT THE RISK OF CRIMINAL PROSECUTION I FIND HER STEREOTYPE OF GAY PROMISCUITY SENSATIONALIST AND INSULTING WHAT IS FRUITLESS IS THE UNIFORM CODE OF MILITARY JUSTICE'S BAN ON SODOMY SINCE HUNDREDS OF THOUSANDS OF HETEROSEXUAL SERVICE MEMBERS CONTINUE TO ENGAGE IN ORAL AND/OR ANAL SEX AT THE RISK OF CRIMINAL PROSECUTION WHAT CONSENTING ADULTS DO IN THE PRIVACY OF THEIR OWN HOME OFFBASE HAS NO BEARING ON THEIR FITNESS FOR SERVICE WHETHER HETEROSEXUAL OR HOMOSEXUAL HER FINAL ARGUMENT CITES DETERIORATION OF TRUST AND MORALE THESE ARE THE SAME ARGUMENTS USED AGAINST THE INTEGRATION OF BLACKS IN THE MILITARY IN 1948 MORALE IS THE RESPONSIBILITY OF EACH INDIVIDUAL IN THE UNIT IT IS NOT HOMOSEXUALS WHO WOULD HARM MORALE IT IS THE HETEROSEXUAL MEMBERS' REACTION TO THEIR PRESENCE SURVEYS SHOW THAT THOSE MOST DISTRUSTFUL OF HOMOSEXUALS ARE THOSE WHO ADMIT TO HAVING NEVER KNOWN SOMEONE GAY OR LESBIAN ATTITUDES WILL NOT BE CHANGED OVERNIGHT BUT EDUCATION AND STRONG LEADERSHIP WILL GO A LONG WAY TOWARD SUCCESSFULLY ELIMINATING PREJUDICE AND FEAR I HAVE SERVED THIS COUNTRY PROUDLY FOR MORE THAN 11 YEARS AND HOPE TO CONTINUE MY NAVAL CAREER FOR ANOTHER 20 I HAVE COME OUT BECAUSE I AM TIRED OF FEARFUL HETEROSEXUALS SUCH AS MAJ WELLSPETRY PAINTING AN HYSTERICAL AND INACCURATE PICTURE OF WHO I AM I FULLY SUPPORT OUR COMMANDER IN CHIEF PRESIDENT CLINTON AND HOPE HE IS SUCCESSFUL AT PUTTING AN END TO THIS DISCRIMINATORY AND UNJUST POLICY MAJ WELLSPETRY ASSERTS THAT SINGLE PARENTS ARE EXCLUDED FROM MILITARY SERVICE BALDERDASH KNOWN SINGLE PARENTS ARE TYPICALLY COACHED BY RECRUITERS ANXIOUS TO MAKE QUOTA TO CONCEAL THEIR STATUS AS A RESULT MANY THOUSANDS OF SUCH PEOPLE ARE TO BE FOUND IN EACH OF THE SERVICES THE QUESTION OF CARE FOR THEIR CHILDREN IN CASE OF UNIT DEPLOYMENT IS A COMMON WORRY FOR COMMANDERS AS FOR THE EFFECT OF HOMOSEXUAL COMRADES ON UNIT COHESION MAJ WELLSPETRY MAKES AN ERROR COMMON TO MILITARY OFFICERS OF HER GENERATION SHE DOES NOT REALIZE THAT YOUNG TROOPS DESPITE THE FORMALISTIC PROTESTATIONS OF A FEW TAKE AN ADULT VIEW OF WHAT REALLY COUNTS IN COMBAT I MYSELF AM EVEN OLDER THAN THE MAJOR AND I USED TO BE BOTHERED SLIGHTLY BY SHARING A GROUP SHOWER AT THE Y WITH OVERT GAYS BUT THEN I GREW UP BRAVO TO MAJ WELLSPETRY SHE ANALYZES AND OUTLINES THE MAJOR COGENT REASONS FOR MAINTAINING THE BAN IN A MOST LOGICAL AND WELLPRESENTED MANNER THERE IS ONLY ONE OVERSIGHT PROBABLY DUE TO HER CODE OF MOST PROPER GENTLEWOMANLY AND COURTEOUS OFFICER CONDUCT IT IS QUITE EVIDENT THAT THE PRESIDENT IS ATTEMPTING TO FORCE THE ISSUE FOR POLITICAL REASONS UPON AN ORGANIZATION WITH WHICH IN THE PAST HE DID NOT HAVE THE INTESTINAL FORTITUDE TO CAST HIS LOT A FACT THAT BY SUCH CURRENT INSISTENCE ON LIFTING THE BAN ACTUALLY MAKES HIM MINIMUS IN THE EYES OF ALL THINKING CITIZENS AND ESPECIALLY AMONG THOSE WHO HAVE OR MIGHT AT SOME FUTURE TIME SERVE IN THEIR NATION'S ARMED FORCES IN THE EYES OF THE WORLD AT LEAST AMONG THINKING PEOPLE WHO WOULD ANALYZE THE PROPOSAL AS DOES MAJ WELLSPETRY HE TARNISHES WHATEVER IMAGE HE MIGHT TRY TO ENGENDER MAJ WELLSPETRY CORRECTLY STATES THAT THE OVERRIDING CRITERION FOR RECRUITMENT MUST BE FITNESS TO SERVE UNFORTUNATELY SHE OFFERS NO EVIDENCE THAT HOMOSEXUALS HAVE PROVED TO BE UNFIT TO SERVE THIS IS INDEED STRANGE SINCE IF TRUE THIS EVIDENCE IS READILY OBTAINABLE THE MILITARY HAS HONORABLY DISCHARGED THOUSANDS OF HOMOSEXUALS IN THE PAST 10 YEARS IT WOULD BE VERY SIMPLE TO REVIEW THEIR SERVICE RECORDS AND DETERMINE THE QUALITY OF THEIR SERVICE THE FEW CASES THAT HAVE BEEN MADE PUBLIC OF HOMOSEXUAL DISCHARGE HAVE INVOLVED INDIVIDUALS WHOSE SERVICE HAS BEEN OUTSTANDING IN FACT IN THE RECENT CASE IN FEDERAL COURT IN CALIFORNIA INVOLVING A NAVY ENLISTED MAN THE PENTAGON ADMITTED IT HAD NO EVIDENCE OF UNFITNESS ON THE PART OF HOMOSEXUALS AS A GROUP MAJ WELLSPETRY ALSO CITES EVIDENCE OF INCREASED INCIDENTS AMONG CIVILIAN HOMOSEXUALS OF SEXUALLY TRANSMITTED DISEASES AND HEPATITIS B AS COMPARED WITH HETEROSEXUAL MEN SHE THEN IMPLIES THAT THESE STATISTICS WOULD BE TRUE AMONG HOMOSEXUALS IN THE MILITARY AND POINTS OUT THAT THE MILITARY DOES NOT HAVE THE MONEY TO FIGHT THESE MEDICAL PROBLEMS AGAIN IF THIS WERE TRUE AMONG THE THOUSANDS OF HOMOSEXUALS ALREADY IDENTIFIED BY THE MILITARY IT WOULD BE EASY TO DETERMINE THIS FROM AN EXAMINATION OF THEIR MEDICAL RECORDS HER SILENCE IN THIS REGARD IS DEAFENING SHE ALSO ARGUES THAT MERELY TO FORBID ONDUTY HOMOSEXUAL CONDUCT WILL NOT DETER IT THIS OF COURSE IS TRUE BUT THIS HAS ALWAYS BEEN TRUE FOR THE PAST 200 YEARS THIS HAS BEEN A PROHIBITED CONDUCT UNDER THE UNIFORM CODE OF MILITARY JUSTICE AND THE MILITARY HAS DEALT WITH IT EITHER BY CRIMINAL PROSECUTION OR DISCHARGE THERE IS NO REASON TO BELIEVE THAT IT CANNOT CONTINUE TO DO SO IN THE FUTURE 9303040040 930304 SENATE VOTES TO EXTEND AID TO UNEMPLOYED BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE SET ASIDE TWO DAYS OF WRANGLING OVER THE CLINTON BUDGET PLAN AND VOTED TO EXTEND FEDERAL UNEMPLOYMENT BENEFITS THROUGH MIDJANUARY THE 58 BILLION IN BENEFITS ABOUT THREEFIFTHS OF WHICH WILL BE DOLED OUT AS PART OF PRESIDENT CLINTON'S ECONOMIC STIMULUS IS THE FIRST SIGNIFICANT LEGISLATIVE TEST OF THE WHITE HOUSE'S BUDGET PACKAGE WHILE THE BILL PASSED BY A 6633 VOTE A BETTER INDICATION OF HOW MR CLINTON'S PACKAGE WILL PLAY IN THE SENATE OCCURRED EARLIER IN THE DAY WHEN DEMOCRATS STUCK TOGETHER TO DEFEAT 5743 AN AMENDMENT THAT WOULD HAVE FORCED A PAYMENT PLAN FOR THE BENEFITS REPUBLICANS ARGUED THAT THE PROGRAM WOULD IRRESPONSIBLY ADD TO THE FEDERAL BUDGET DEFICIT BUT DEMOCRATS COUNTERED THAT FEDERAL UNEMPLOYMENT BENEFITS WILL EXPIRE SATURDAY AND THAT THE JOBLESS NEED FEDERAL ASSISTANCE UNDER THE PROGRAM UNEMPLOYED WORKERS WHO HAVE EXHAUSTED STATE BENEFITS CAN RECEIVE UP TO 26 WEEKS OF FEDERAL PAYMENTS NO ONE CAN APPLY AFTER OCT 2 UNLESS THE BENEFITS ARE EXTENDED AS THEY HAVE BEEN THREE TIMES BEFORE IN ADDITION THE EXTENDED BENEFITS ARE AVAILABLE ONLY TO THOSE WHO HAVEN'T ALREADY RECEIVED THE FULL ALLOTMENT OF FEDERAL BENEFITS THE SENATE APPROVED BY VOICE VOTE AN AMENDMENT TO FREEZE THE SALARIES OF ALL MEMBERS OF CONGRESS THE AMENDMENT FORCES THE HOUSE WHICH PASSED THE UNEMPLOYMENT BILL LAST MONTH TO TAKE UP THE LEGISLATION AGAIN SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY PREDICTED HOWEVER THAT THE AMENDMENT WILL BE INSTANTLY ACCEPTED BY THE HOUSE THE PRESIDENT IS EXPECTED TO SIGN THE BILL BEFORE THE WEEKEND THE SENATE ALSO REJECTED A STRING OF AMENDMENTS PUT FORWARD BY REPUBLICANS TO PLACE FISCAL CONTROLS ON THE PLAN AN AMENDMENT BY SEN HANK BROWN R COLO WOULD HAVE FROZEN ALL FEDERAL SALARIES A PROPOSAL ALREADY BEING ADVANCED BY MR CLINTON AS PART OF HIS PACKAGE BUT IT WAS DEFEATED AFTER MAJORITY LEADER GEORGE MITCHELL D MAINE ARGUED THAT IT WOULD SIMPLY ALLOW REPUBLICANS TO CHERRYPICK THE PARTS OF THE WHITE HOUSE PLAN THAT THEY LIKED BEFORE THE VOTE ON THE OVERALL PACKAGE IN THE SPRING UNDER THE BENEFITS PLAN WORKERS WHO HAVE EXHAUSTED THEIR STATE BENEFITS COULD RECEIVE AN ADDITIONAL 26 WEEKS OF FEDERAL PAYMENTS IF THEY LIVE IN ONE OF SIX STATES OR PUERTO RICO WHICH HAVE UNEMPLOYMENT RATES OF 9 OR HIGHER WORKERS COULD RECEIVE 20 WEEKS OF FEDERAL BENEFITS IN OTHER STATES THE LEVELS OF BENEFITS WOULD BE CUT IF THE NATIONAL UNEMPLOYMENT RATE FALLS BELOW 7 THE BENEFITS PROGRAM WOULD FOR THE FIRST TIME BE LINKED TO A PROFILING PLAN THAT WOULD SEPARATE TEMPORARILY LAID OFF WORKERS FROM THOSE WHO HAVE PERMANENTLY LOST THEIR JOBS UNDER A LABOR DEPARTMENT PLAN THE LATTER GROUP WOULD BE OFFERED COUNSELING AND JOB TRAINING WHICH HAS BEEN SHOWN IN STATE TESTS TO CUT THE NUMBER OF WEEKS THAT THE JOBLESS NEED BENEFITS 9303040039 930304 THE MAKING AND REMAKING OF A LIGHT' POTATO CHIP BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL LESS WAS SUPPOSED TO BE MORE IT WASN'T FRITOLAY INC FOUND THAT OUT WHEN IT INTRODUCED ITS RUFFLES LIGHT LOWFAT POTATO CHIP THINKING IT HAD A BLOCKBUSTER IN THE MAKING AFTER ALL THE PEPSICO INC UNIT'S MARKETRESEARCH INDICATED CONSUMERS DESPERATELY WANTED A HEALTHIER ALTERNATIVE TO REGULAR CHIPS AND THAT SEEMED TO BE CONFIRMED WHEN FRITOLAY BEGAN TEST MARKETING THE LOWFAT CHIP ALONG WITH LOWFAT DORITOS AND CHEETOS ALMOST FIVE YEARS AGO SALES WERE STRONG ENOUGH THAT WITHIN 18 MONTHS THE COMPANY ROLLED THE PRODUCTS OUT NATIONALLY AND SPENT 13 MILLION IN 1990 PROMOTING THEM BUT ABOUT A YEAR LATER THE LOWFAT DORITOS AND CHEETOS WERE SCALED BACK TO THE WEST COAST MARKET AND TODAY ARE SOLD MOSTLY IN CALIFORNIA AND RUFFLES LIGHT ALTHOUGH REMAINING IN NATIONAL DISTRIBUTION SOMEWHAT CHANGED WASN'T THE SUCCESS ITS CREATORS HAD ANTICIPATED I HAD HOPED IT WOULD BE AN IMMEDIATE GIGANTIC BIT OF OUR BUSINESS BUT IT'S TAKEN US LONGER SAYS DWIGHT RISKEY FRITOLAY'S VICE PRESIDENT OF NEW PRODUCTS WHAT WENT WRONG CONSUMERS MAY HAVE BEEN ASKED TO SACRIFICE TOO MUCH IN TASTE TO SAVE TOO FEW CALORIES AN OUNCE OF RUFFLES LIGHT CHIPS CONTAINS 130 CALORIES AND SIX GRAMS OF FAT COMPARED WITH 150 CALORIES AND 10 GRAMS OF FAT FOR REGULAR RUFFLES FOR MARGARET PATTERSON OF CHICAGO THAT JUST WASN'T GOOD ENOUGH SHE THOUGHT THE NEW CHIPS LACKED PUNCH SHE HAS SINCE SWITCHED TO PRETZELS THAT HAVE LESS FAT AND CALORIES THAN THE RUFFLES LIGHT CHIPS LARRY ALLEN A 22YEAROLD BODYBUILDER FROM YPSILANTI MICH SAYS HE LIKED THE LOWFAT CHIPS BETTER THAN REGULAR RUFFLES THE LIGHT VERSION HE SAYS DIDN'T TASTE QUITE AS POLLUTED AS THE REGULAR RUFFLES WITH ALL THAT GREASINESS BUT MR ALLEN EXPRESSES DOUBTS ABOUT THE PRODUCT SOMETIMES WHEN THEY SAY LIGHT' IT'S NOT AS LIGHT AS THEY ADVERTISE IT TO BE WHEN THE PRODUCT FAILED TO TAKE OFF FRITOLAY CONDUCTED FOLLOWUP TASTE TESTS THE COMPANY DECIDED NOT TO TAMPER WITH RUFFLE LIGHT'S CALORIE AND FAT CONTENT BUT TO TRY TO IMPROVE THE TASTE INSTEAD IT BECAME MORE SELECTIVE IN THE POTATOES IT USED IT LINED THE PACKAGES WITH FOIL TO KEEP THEM FRESHER AND CRISPIER AND RENAMED THE PRODUCT RUFFLES LIGHT CHOICE THE CHANGES HELPED FRITOLAY SAYS SALES OF RUFFLES LIGHT CHOICE TOTALED 454 MILLION IN 1992 COMPARED WITH 303 MILLION THE YEAR BEFORE BUT THE PRODUCT IS STILL FAR BEHIND SUNCHIPS A NEWER FRITOLAY MULTIGRAIN PRODUCT THAT HAS 150 CALORIES AND EIGHT GRAMS OF FAT PER OUNCE SUNCHIPS HAD SALES OF 100 MILLION IN 1991 ITS FIRST YEAR ON THE MARKET AND 192 MILLION LAST YEAR STILL MR RISKEY REMAINS CONFIDENT ABOUT RUFFLES LIGHT CHOICE REFERRING TO LOWFAT SALTY SNACKS SUCH AS POTATO CHIPS HE SAYS IT'S A HUGE OPPORTUNITY I DON'T THINK IT'S BEEN TOTALLY CAPTURED YET BUT PROGRESS HAS BEEN MADE AND WE'RE AT THE FOREFRONT OF THAT PROGRESS 9303040038 930304 PARAMOUNT IS TARGETED BY PENSION FUND DUE TO WEAK STOCK PRICE EXECUTIVE PAY BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL WISCONSIN'S PUBLIC PENSION FUND IS LEADING AN EFFORT TO UNSEAT FOUR DIRECTORS AT PARAMOUNT COMMUNICATIONS INC BECAUSE OF THE COMPANY'S LAGGING STOCK PERFORMANCE AND HIGH EXECUTIVE COMPENSATION OFFICIALS OF THE PENSION FUND SAID THE MOVE IS ONE OF THE FIRST EXAMPLES OF HOW SOME ACTIVIST SHAREHOLDERS MAY REACT TO INFORMATION INCLUDED FOR THE FIRST TIME BY COMPANIES IN THEIR PROXY STATEMENTS TRUSTEES OF THE 30 BILLION WISCONSIN PENSION FUND APPROVED A PLAN YESTERDAY TO CONTACT 160 OF PARAMOUNT'S LARGEST SHAREHOLDERS AND URGE THEM TO VOTE AGAINST THE FOUR INDEPENDENT DIRECTORS WHO SET COMPENSATION POLICY AT THE COMPANY THE EFFORT BY THE PENSION FUND WHICH OWNS 100000 SHARES OF PARAMOUNT'S 118 MILLION SHARES OUTSTANDING IS MAINLY DESIGNED TO SEND A MESSAGE TO THE MOVIE AND PUBLISHING COMPANY'S MANAGEMENT THAT IT IS UNHAPPY WITH THE COMPANY'S STOCK PERFORMANCE RATHER THAN TO REMOVE THE FOUR DIRECTORS SINCE THERE ARE NO ALTERNATE CANDIDATES FOR THE BOARD AND THE FUND ISN'T PUTTING UP ITS OWN SLATE OF DIRECTORS A PARAMOUNT SPOKESMAN SAID THE COMPANY HAD NO KNOWLEDGE OF THE SHAREHOLDER PLAN THE COUNCIL OF INSTITUTIONAL INVESTORS SAID IT WILL JOIN THE WISCONSIN PENSION FUND'S EFFORT BY INFORMING ITS PUBLIC PENSION FUND MEMBERS WHICH OVERSEE THE RETIREMENT MONEY OF FEDERAL STATE AND CITY EMPLOYEES ABOUT WISCONSIN'S PROXY CONTEST THE WISCONSIN PENSION FUND IS SEEKING THE REMOVAL OF SAMUEL J SILBERMAN RETIRED CHAIRMAN OF CONSOLIDATED CIGAR CORP GRACE FIPPINGER FORMER VICE PRESIDENT SECRETARY AND TREASURER OF NYNEX CORP LAWRENCE SMALL PRESIDENT AND CHIEF OPERATING OFFICER OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND GEORGE WEISSMAN RETIRED CHAIRMAN AND CONSULTANT TO PHILIP MORRIS COS THE FOUR DIRECTORS SERVE ON PARAMOUNT'S COMPENSATION COMMITTEE THE PENION FUND STATE OF WISCONSIN INVESTMENT BOARD SAID IN A LETTER MAILED LAST NIGHT TO PARAMOUNT SHAREHOLDERS THAT IT IS TARGETING PARAMOUNT BECAUSE ITS EXECUTIVE COMPENSATION IS NOT ADEQUATELY TIED TO ITS STOCK PERFORMANCE LAST YEAR MARTIN DAVIS THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD A SALARY AND BONUS TOTALING 36 MILLION UP FROM ABOUT 28 MILLION A YEAR EARLIER IN ADDITION FIVE EXECUTIVES INCLUDING MR DAVIS WERE AWARDED BONUSES TOTALING 8 MILLION IN A REPORT FROM THE COMPENSATION COMMITTEE INCLUDED IN THE COMPANY'S PROXY STATEMENT PARAMOUNT JUSTIFIED MR DAVIS'S COMPENSATION SAYING HIS SALARY DID NOT INCREASE MR DAVIS'S BONUS INCREASED BECAUSE OF SIGNIFICANT INITIATIVES INSTITUTED BY HIM WHICH MOVED PARAMOUNT AHEAD BOTH ON A SHORT AND LONGTERM BASIS IT SAID COMPENSATION CONSULTANTS SAY PARAMOUNT'S EXECUTIVE COMPENSATION IS NOT PARTICULARLY HIGH COMPARED WITH OTHER ENTERTAINMENT COMPANIES SOME OF ITS RIVALS NOTABLY TIME WARNER INC HAVE AWARDED FAR RICHER COMPENSATION PACKAGES WHAT SHAREHOLDERS ARE NOTICING IS THAT MR DAVIS GETS HIS BONUSES NO MATTER HOW THE COMPANY'S SHARE PRICE DOES SAID GRAEF CRYSTAL A COMPENSATION CONSULTANT PARAMOUNT'S STOCK UNDERPERFORMED STANDARD & POOR'S 500STOCK INDEX LAST YEAR BY ABOUT 40 ACCORDING TO KURT SCHACT GENERAL COUNSEL OF THE WISCONSIN PENSION FUND IT ALSO UNDERPERFORMED A SELFSELECTED GROUP OF PEER GROUP STOCKS BY ABOUT 30 OVER THE PAST FIVE YEARS ACCORDING TO A CHART INCLUDED IN THE COMPANY'S PROXY MATERIALS MAILED TO SHAREHOLDERS IN PREPARATION FOR PARAMOUNT'S ANNUAL MEETING NEXT THURSDAY THE STOCK HAS BEEN LANGUISHING FOR SEVERAL YEARS IT CLOSED UNCHANGED YESTERDAY AT 48 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DESPITE THE JUMP IN EARNINGS LAST YEAR THE FIRST HALF OF THIS YEAR IS EXPECTED TO BE FLAT AT BEST BUT THE COMPANY HAS PREDICTED THAT ITS MOVIE OPERATIONS WILL REBOUND IN THE SECOND HALF FUELING AN OVERALL EARNINGS REBOUND AND DESPITE ITS LANGUISHING STOCK PRICE ANALYSTS CITING PARAMOUNT'S STRONG ENTERTAINMENT AND PUBLISHING ASSETS SAY IT IS A BARGAIN FOR INVESTORS IN A RECENT REPORT UBS SECURITIES ANALYST EDWARD T HATCH SAYS THE STOCK'S LOW RELATIVE VALUE REFLECTS THE STUDIO'S PAST WEAK PERFORMANCE AND ANEMIC NEARTERM OUTLOOK AT PRUDENTIAL SECURITIES SHARON WILLIAMS SAYS PARAMOUNT IS THE COMPANY BESTPOISED TO TAKE ADVANTAGE OF THE SURGING DEMAND FOR PROGRAMMING TO MEET EXPANDING CAPACITY FOR CABLETV CHANNELS AS A RESULT OF CHANGES MANDATED BY THE SECURITIES AND EXCHANGE COMMISSION COMPANIES ARE REQUIRED THIS YEAR TO INCLUDE A PERFORMANCE CHART IN THE BACK OF THE PROXY COMPARING THE COMPANY'S STOCK PRICE WITH A RELEVANT BENCHMARK INDEX SUCH AS THE S&P 500 AND TO A GROUP OF PEER STOCKS SELECTED BY THE COMPANY COMPANIES ARE ALSO REQUIRED TO INCLUDE A CHART THAT MAKES IT EASIER FOR SHAREHOLDERS TO DECIPHER TOP EXECUTIVES' TOTAL COMPENSATION PACKAGES BOTH CHANGES WILL MAKE COMPANIES WITH POOR STOCK PERFORMANCE AND HIGHLY PAID EXECUTIVES VULNERABLE TO PRESSURE FROM ACTIVIST SHAREHOLDERS IN RECENT MONTHS SHAREHOLDER ACTIVISTS INCLUDING CALIFORNIA'S PENSION FUND THE NATION'S LARGEST PUBLIC PENSION FUND HAVE BEEN CAJOLING SOME COMPANIES IN WHICH THEY HAVE INVESTMENTS FOR BETTER FINANCIAL PERFORMANCE 9303040037 930304 POLITICS & POLICY GORE ADDING EFFICIENCY STUDY TO HIS PORTFOLIO HAS CARVED OUT A SIGNIFICANT ROLE FOR HIMSELF BY MICHAEL K FRISBY AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AS VICE PRESIDENTS GO ALBERT GORE HAS HIMSELF A NICE CHUNK OF TURF THE VICE PRESIDENT'S SPHERE EXPANDED YESTERDAY WITH THE ANNOUNCEMENT THAT HE WILL LEAD THE LATEST WHITE HOUSE EFFORT TO ANSWER THE CALL FOR CHANGE IN WASHINGTON A TASK FORCE THAT WILL SUPPOSEDLY EXAMINE EACH FEDERAL AGENCY FOR WAYS TO CUT SPENDING AND IMPROVE SERVICES THE TOTAL QUALITY MANAGEMENT EFFORT IS AN IDEA BORROWED FROM INDUSTRY AND ALREADY TRIED SUCCESSFULLY IN STATES SUCH AS TEXAS THE ASSIGNMENT COMES ATOP HIS ROLE IN CLINTON ADMINISTRATION POLICIES ON THE ENVIRONMENT AND TECHNOLOGY AREAS THAT HE DOMINATES AND THAT ARE LARGELY STAFFED BY PEOPLE HE RECOMMENDED HE ALSO PLAYS A SUBSTANTIAL ROLE IN FOREIGN AFFAIRS ONE OF HIS AIDES FOR EXAMPLE IS A KEY WHITE HOUSE POINT MAN ON THE BOSNIA CRISIS THE VICE PRESIDENT'S HIGHVISIBILITY ROLE IS NO ACCIDENT BUT RATHER PART OF A CALCULATED WHITE HOUSE EFFORT EVERY VICE PRESIDENT HAS HAD TO GRAPPLE WITH THE FRUSTRATIONS OF BEING SECOND BANANA TO THE PRESIDENT MR GORE HAS THE ADDED CHALLENGE OF OPERATING IN THE SHADOW OF HILLARY RODHAM CLINTON AS WELL BUT AFTER PRESS STORIES DEPICTED MR GORE AS HAVING LITTLE INFLUENCE AND BEING DISTRAUGHT OVER HIS REDUCED ROLE THE WHITE HOUSE HAS LAUNCHED A CONCERTED EFFORT TO CONVINCE EVERYONE THAT YES AL GORE IS AN IMPORTANT PLAYER IN THIS ADMINISTRATION PUBLIC RELATIONS EFFORTS ASIDE THE EVIDENCE SUGGESTS THAT MR GORE HAS INDEED MANAGED TO CARVE OUT A SIGNIFICANT CHUNK OF TURF FOR HIMSELF IN THE AREAS OF ENVIRONMENT AND TECHNOLOGY THE VICE PRESIDENT HAS BEEN SPECIFICALLY CHARGED WITH THOSE RESPONSIBILITIES SAYS THOMAS MACK MCLARTY THE WHITE HOUSE CHIEF OF STAFF IN ADDITION HE SAYS MR GORE IS JUST AN EXCELLENT SOURCE OF COUNSEL IN SEVERAL DIFFERENT WAYS AND AREAS THOSE AREAS AREN'T THE ONES THAT ARE EMERGING AS THE DEFINING ISSUES OF THE CLINTON PRESIDENCY TAXES DEFICIT REDUCTION HEALTH CARE WHICH REMAIN THE DOMAIN OF MR CLINTON HIMSELF AND IN THE CASE OF HEALTH CARE OF MRS CLINTON INSTEAD THEY ARE SECONDTIER ISSUES BUT ONES OVER WHICH MR GORE HAS BEEN GIVEN AN UNUSUAL DEGREE OF CONTROL FOR A VICE PRESIDENT FOR EXAMPLE WHITE HOUSE OFFICIALS SAY THE VICE PRESIDENT WAS PERSONALLY RESPONSIBLE FOR THE APPROXIMATELY 1 BILLION IN NEWTECHNOLOGY INITIATIVES INCLUDED IN PRESIDENT CLINTON'S ECONOMICSTIMULUS PLAN THE FIRST DRAFT OF THE STIMULUS PACKAGE DIDN'T CONTAIN ANY NEW INVESTMENT IN TECHNOLOGY BUT MR GORE PREVAILED OVER DEFICIT HAWKS SUCH AS LEON PANETTA BUDGET DIRECTOR AND HIS DEPUTY ALICE RIVLIN GOING THROUGH BUDGET ACCOUNTS LINEBYLINE THE VICE PRESIDENT ARGUED THAT THE MONEY WHICH INCLUDES MORE RESEARCH GRANTS FOR UNIVERSITY SCIENTISTS AND US BUSINESSES AND FUNDS FOR ENERGYEFFICIENCY PROGRAMS WOULD PAY LONGTERM DIVIDENDS WHILE GIVING MR CLINTON'S PLAN A FUTURISTIC SPIN AT THE SAME TIME MR GORE ARGUED TO MAKE SURE HIS PET PROJECTS WERE FUNDED HE ADDED AN EXTRA 111 MILLION FOR DEVELOPING A SUPERFAST COMPUTER NETWORK A PROJECT HE PROMOTED FOR YEARS IN THE SENATE AND HE INSISTED THAT THE PRESIDENT'S NATIONAL SERVICE PROPOSAL WHICH WOULD ALLOW YOUTHS TO WORK OFF COLLEGE LOANS INCLUDE AN ENVIRONMENTAL CORPS TO PERFORM SUCH TASKS AS CLEANING RIVER BANKS FIXING URBAN PARKS AND BUILDING NATURE TRAILS MR GORE LED THE WAY IN PRESSING FOR AN ENERGY TAX TO TAKE THE FORM OF A LEVY ON THE HEATCONTENT OF DIFFERENT FORMS OF ENERGY HE PUSHED FOR SUCH OTHER PROPOSALS AS RAISING GRAZING FEES AND PHASING OUT LOWCOST SALES OF TIMBER FROM FEDERAL LANDS AS WELL AS FOR SOME SMALLER ENVIRONMENTRELATED PROPOSALS IN FOREIGN POLICY THE MOST STRIKING INDICATOR OF MR GORE'S IMPORTANCE IS THE ROLE PLAYED BY HIS TOP FOREIGNPOLICY ADVISER LEON FUERTH MR FUERTH IS A FULL MEMBER OF THE SOCALLED DEPUTIES COMMITTEE THE INTERAGENCY GROUP THAT MANAGES MAJOR FOREIGNPOLICY ISSUES AND CRISES AND HE HEADS AN INTERAGENCY TASK FORCE ON SANCTIONS ON SERBIA A KEY ELEMENT OF THE CLINTON STRATEGY FOR SETTLING THE BLOODY WAR IN THE FORMER YUGOSLAVIA BY CONTRAST FORMER VICE PRESIDENT DAN QUAYLE HAD A SEPARATE NATIONALSECURITY STAFF THAT WAS LARGELY SHUT OUT OF BUSH ADMINISTRATION DECISIONMAKING MR GORE HIMSELF MR MCLARTY SAYS WAS A POTENT VOICE LOBBYING FOR THE AIRLIFT TO BOSNIA HE FELT THAT IT WAS THE RIGHT APPROACH THAT IT WOULD HELP DELOGJAM SOME OF THE BLOCKADES ON THE GROUND THE CHIEF OF STAFF SAYS THE VICE PRESIDENT WAS ALSO CHOSEN TO MEET LAST WEEKEND WITH BOSNIAN PRESIDENT ALIJA IZETBEGOVIC HIS TASK WAS A SENSITIVE ONE TO TELL THE MUSLIM LEADER THAT DESPITE MR CLINTON'S TOUGH CAMPAIGN TALK THE US WOULD NOT INTERVENE MILITARILY TO RESCUE THE BOSNIANS THE OFFICIAL EXPLANATION FOR THE MEETING WAS THAT MR GORE HAD A PREEXISTING RELATIONSHIP WITH THE BOSNIAN LEADER PRIVATELY OFFICIALS SAY THEY WANTED THE MEETING TO RECEIVE LESS PUBLICITY THAN IF MR IZETBEGOVIC HAD MET WITH MR CLINTON IN ORDER TO SHIELD THE PRESIDENT FROM ANY POSSIBLE RECRIMINATIONS AT THE SAME TIME WITH MR GORE DELIVERING THE MESSAGE THERE WAS NO QUESTION OF ITS AUTHORITY MR GORE ATTENDS THE PRESIDENT'S MORNING INTELLIGENCE BRIEFING AS WELL AS MR CLINTON'S MEETINGS WITH FOREIGN LEADERS AND HE HAS MADE HIS OWN FOREIGNAFFAIRS PRIORITIES CLEAR TO THE STAFF TECHNOLOGY THE ENVIRONMENT AND NONPROLIFERATION SEVERAL FACTORS HAVE HELPED MR GORE CARVE OUT HIS NICHE IN THE ADMINISTRATION ONE IS THAT HE HAS THE WASHINGTONINSIDER PERSPECTIVE THAT MR CLINTON HIMSELF AND SEVERAL MEMBERS OF HIS TEAM LACK IN ADDITION THE PRESIDENT HAS LITTLE INTEREST IN THE DETAILS OF ENVIRONMENTAL AND TECHNOLOGY POLICY MAKING IT EASY FOR HIM TO CEDE THOSE AREAS TO MR GORE THE VICE PRESIDENT ALSO HAS MADE AN IMPORTANT ALLY IN MR MCLARTY GOING OUT OF HIS WAY TO HELP THE FORMER ARKANSAS BUSINESS EXECUTIVE AND HIS WIFE ADJUST TO THEIR MOVE HERE OF COURSE THERE'S ALSO THE HIGHLY VISIBLE SOCIAL TIME SPENT WITH THE CLINTONS THEMSELVES THE FIRST COUPLE DINED AT THE GORES' ARLINGTON VA HOME WITH PRINCE CHARLES LAST MONTH JUST LAST WEEK THE CLINTONS AND GORES TOOK IN THE SHOW AT THE BIRCHMERE A POPULAR LOCAL FOLKBLUEGRASS CLUB IN WHITE HOUSE MEETINGS MR GORE IS FORCEFUL IN HIS ARGUMENTS ON HIS ISSUES BUT OFTEN WILL REMAIN QUIET DURING MORE GENERAL POLICY DEBATES AND WHILE HIS AIDES ARE PLEASED AT WHITE HOUSE EFFORTS TO PORTRAY HIM AS AN IMPORTANT FORCE IN ADMINISTRATION COUNCILS THEY DON'T WANT TO BE SEEN AS TOO OBVIOUSLY TOUTING HIS ROLE THEY AND MR GORE HIMSELF ARE KEENLY AWARE THAT HIS STATUS COULD SWIFTLY PLUMMET IF MR CLINTON VIEWS HIM AS COMPETING FOR ATTENTION SELFDEPRECATION MAY BE THE BEST DEFENSE TUESDAY NIGHT IN A PHONE CONVERSATION BROADCAST ON NBCTV'S LATE NIGHT WITH DAVID LETTERMAN THE HOST ASKED MR GORE HOW HE SHOULD BE ADDRESSED SAID THE VICE PRESIDENT YOUR ADEQUACY' IS OK CARLA ANNE ROBBINS CONTRIBUTED TO THIS ARTICLE 9303040036 930304 MARKETING & MEDIA US SATELLITE SIGNS UP CABLE NETWORKS CLEARING HURDLE BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL A FLEDGLING DIRECT BROADCAST SATELLITE SERVICE THAT VOWS TO CHALLENGE THE CABLE INDUSTRY HAS CLEARED A MAJOR HURDLE SIGNING UP A SLEW OF CABLE NETWORKS US SATELLITE BROADCASTING INC WHICH PLANS TO DELIVER PROGRAMMING TO PIZZAPANSIZED SATELLITE DISHES STARTING EARLY NEXT YEAR SIGNED DISTRIBUTION AGREEMENTS WITH VIACOM INC CHANNELS NICKELODEON MTV AND VH1 THE ST PAUL MINN COMPANY ALSO SIGNED DEALS WITH VIACOM PAY CHANNELS SHOWTIME MOVIE CHANNEL AND FLIX AS WELL AS TIME WARNER INC'S HOME BOX OFFICE AND CINEMAX WE'VE NOW GOT THE TWO BIGGEST NAMES IN NATIONAL PROGRAMMING TIME WARNER AND VIACOM SAID US SATELLITE'S CHAIRMAN AND CHIEF EXECUTIVE STANLEY S HUBBARD AND THEY ARE SAYING DBS IS FOR REAL AND IT'S HERE TO STAY DIRECT BROADCAST SATELLITE TECHNOLOGY SCORNED BY CABLE OPERATORS STARTED OUT DELIVERING PROGRAMMING TO LARGE OUTDOOR SATELLITE DISHES AT RURAL HOMES THAT COULDN'T GET CABLE SERVICE BUT A NEW GENERATION OF DISHES ARE SMALLER AND CHEAPER AND SOME ANALYSTS BELIEVE US SATELLITE AND ITS PARTNER GENERAL MOTORS CORP SUBSIDIARY HUGHES COMMUNICATIONS INC COULD POSE THE FIRST REAL SATELLITE THREAT TO CABLE IN DECEMBER OF THIS YEAR US SATELLITE AND HUGHES WILL LAUNCH THE FIRST OF TWO HIGHPOWERED SATELLITES CAPABLE OF DELIVERING MORE THAN 60 CHANNELS BY EARLY 1994 THE SECOND SATELLITE WITH THE SAME CAPACITY IS SLATED FOR LAUNCH IN LATE 1994 THOUGH US SATELLITE IS A PARTNER WITH HUGHES THE TWO COMPANIES WILL BUY AND DISTRIBUTE PROGRAMMING SEPARATELY HUGHES WHICH HAS 600 MILLION INVESTED IN THE NEW SERVICE COMPARED WITH US SATELLITE'S 100 MILLIONPLUS ALREADY HAS SIGNED DISTRIBUTION AGREEMENTS WITH PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PICTURES CORP AND WALT DISNEY CO'S DISNEY CHANNEL MR HUBBARD TOUTS AGGRESSIVE GOALS FOR THE NEW SERVICE VOWING TO SIGN UP TWO MILLION HOMES BY THE END OF ITS FIRST YEAR AND TO GROW TO 20 MILLION IN FIVE YEARS BUT THOSE MAY BE AMBITIOUS FIGURES SINCE THE NEW SERVICE WILL HAVE TO PERSUADE VIEWERS TO SHELL OUT ABOUT 700 FOR A DISH PLUS MONTHLY CHARGES MR HUBBARD SAYS THE PRICE WILL DROP TO ABOUT 300 WITHIN TWO YEARS CABLE CHANNELS HOWEVER MAY SUPPORT THE DBS VENTURE BECAUSE IT OFFERS THEM A NEW REVENUE STREAM WE BELIEVE THIS GIVES US AN OPPORTUNITY TO BE AVAILABLE IN ANY HOME THAT WANTS OUR SERVICE NOW SAYS MCADORY LIPSCOMB JR A SENIOR VICE PRESIDENT AT SHOWTIME NETWORKS INC MORE PROGRAMMERS ARE EXPECTED TO SIGN UP SOON UNDER A PROVISION OF THE RECENTLY PASSED CABLE ACT CABLE OPERATORS THAT OWN PROGRAMMING SERVICES ARE REQUIRED TO SELL THE FARE TO SUCH RIVALS AS DBS VENTURES AND ARE PROHIBITED FROM JACKING UP THE PRICES THEY CHARGE THE RULE IS SET TO BE IMPLEMENTED IN APRIL 9303040035 930304 LEISURE & ARTS BOOKSHELF THE SHEIK'S SICK HEART BY MANUELA HOELTERHOFF SOMEWHERE IN SAN FRANCISCO A SMALL DINNER PARTY IS IN PROGRESS THE PHONE RINGS AND THE HOST A DOCTOR LEAVES THE ROOM TO PICK IT UP TALKS AWHILE AND RETURNS WITH AN AMUSED EXPRESSION ON HIS FACE HE HAS BEEN ASKED TO FLY THE NEXT DAY TO LONDON TO EXAMINE A VERY SICK PERSON WHOSE NAME THE CALLER WOULD NOT REVEAL THE SITUATION IS URGENT THE PATIENT IS DYING NAME YOUR FEE THE CALLER SAID TAKE THE CONCORDE THE DOCTOR DISMISSES THE CALL HE'S BUSY BUT HIS GUESTS AND WIFE ARE ENTHRALLED WHO COULD IT BE WHO COULD BE SO RICH SO IMPORTANT PRINCESS MARGARET ISN'T HE CURIOUS WHY TURN DOWN A WEEKEND IN LONDON YOU COULD TAKE YOUR WIFE SAYS ONE GUEST THE WIFE PERKS UP SOMEWHAT RELUCTANTLY THE DOCTOR AGREES TO JOIN THE INTERNATIONAL TEAM OF EXPERTS ASSEMBLING IN LONDON THE GUESSING GAME CONTINUES ALL THE WAY TO THE HOTEL WHERE THE ABSENCE OF CHAMPAGNE IN THE LAVISH SUITE MAKES THE WIFE THINK THE MYSTERY PATIENT MUST BE AN ARAB SINCE THE WIFE IS THE NOVELIST DIANE JOHNSON WHAT FOLLOWS IS A LIMPIDLY COMPLEX STORY THAT TOUCHES BRIEFLY ON HEART TRANSPLANTS BANKING DRUGS AND THE DRAWBACKS OF BEING A WIDOW IN PAKISTAN MOST OF THE STORIES IN NATURAL OPIUM KNOPF 234 PAGES 21 DESCRIBE MS JOHNSON'S TRAVELS WITH J HER DOCTOR HUSBAND WHOSE KNOWLEDGE OF INFECTIOUS DISEASES MAKES HIM A POPULAR GUEST AT MEDICAL CONFERENCES AROUND THE WORLD HE LECTURES ON SICK LUNGS AND THINKS TRAVEL IS A HIGH HENCE THE TITLE SHE HAS PLENTY OF TIME TO PONDER ANOTHER AFFLICTION MOST TRAVELERS WILL KNOW IT WELL THAT QUEASY FEELING WHEN YOU FIND YOURSELF IN THE MIDDLE OF A DESERT OR AN ENDLESS DINNER THINKING WHAT AM I DOING HERE I HAVE TRIED TO ACCOUNT FOR THOSE MOMENTS OF TRAVEL ENNUI OR TRAVELER'S PANIC WE ALL HAVE FELT THE SHEER INABILITY TO EAT ANOTHER WONTON THE DESPERATE WISH TO BE TRANSPORTED BY INSTANTANEOUS SPACE/TIME TRAVEL INTO ONE'S OWN BED SHE WRITES IN THE PREFACE TO THESE VIVIDLY RENDERED OFTEN ODDLY HUMOROUS WANDERINGS IN PLACES AS VARIED AS THE GREAT BARRIER REEF SINGAPORE ST PETERSBURG UTAH AFRICA BUT AS OFTEN HER THOUGHTS ARE SHARPENED BY STRANGE ENCOUNTERS THAT REQUIRE ANSWERS AND EXPLANATIONS DID SHE NEED TO BE SO CRUEL TO THE CHINESE DOCTOR AN ADMITTEDLY ODIOUS CHAP WHO FOLLOWED HER AROUND BEIJING DESPERATELY EAGER TO WORK IN THE US WHAT REALLY HAPPENED AT THE HOMESTEAD OF REBA HETTER A TOOTHLESS MORMON FANATIC WHOSE SHOOTOUT WITH LOCAL POLICE MS JOHNSON WATCHES IN THE COMPANY OF SEVERAL FOREIGN DOCTORS WHO FIND THE SCENE COMPLETELY ENCHANTING AN UNEXPECTED OFFER OR A THOUGHTLESS REQUEST INVARIABLY BROUGHT ON BY CULTURAL MISUNDERSTANDINGS USUALLY LIES AT THE CENTER OF THESE 10 STORIES IN WINE MS JOHNSON'S WARM FEELINGS TOWARD THE WIFE OF THE VICE PRESIDENT OF A THAI PHARMACEUTICAL COMPANY HAVE ALREADY SUFFERED A SLIGHT CHILL SHE HAS BEEN ASKED TO MODEL A NEW RING TO SEE HOW IT WOULD LOOK ON AN OLDER HAND WHEN THE DINNER THEY ARE ATTENDING IS FURTHER DISRUPTED BY A CANADIAN DOCTOR EAGER TO WASH DOWN FISH BALLS AND LEMON GRASS WITH SOMETHING FAMILIAR WINE IS NOT MUCH DRUNK IN THAILAND SOMEONE WHISPERS BUT A BOTTLE IS FINALLY PRODUCED MS JOHNSON SMILES GENTLY TO HERSELF GLAD SHE HASN'T CAUSED THE PROBLEM GLAD AS WELL TO HAVE A LITTLE WINE IT MAKES HER RECALL OTHER DARK MOMENTS IN HER LIFE WHEN WINE WAS INAPPROPRIATELY ORDERED IN INDIA AND GUATEMALA AND THESE MEMORIES ARE NEATLY FOLDED INTO DESCRIPTIONS OF THE SLOWLY DISINTEGRATING DINNER PARTY WHICH DESCENDS INTO CHAOS WHEN THE EAGERTOPLEASE HOST OFFERS HIS ALARMED GUESTS AN AFTERDINNER MASSAGE BAFFLED POOR DR PRANGITHORNBUPU OBSERVES THE HYSTERICAL DEFECTION OF HIS WESTERN GUESTS ANOTHER GHASTLY DINNER THIS ONE HIGH UP ON A SNOWY SWISS MOUNTAIN ENDS IN EVEN GREATER DISARRAY AS THE JOVIALLY LUNATIC HOST SUGGESTS THE DOCTORS SLED DOWN TO THE HOTEL MANY MILES BELOW SEVERAL ARE DRUNK EVERYONE IS IN PARTY CLOTHES THE COURSE IS ICY MOST HAVE NOT STEERED A SLED IN DECADES I COULD HARDLY BELIEVE THAT THE ORGANIZERS INTENDED THAT THIS GROUP OF DOCTORS MANY STOUT AND ELDERLY OR DELICATE ISLAND PEOPLE SHOULD GO OUTSIDE AND HURTLE INTO THE NIGHT ON THESE DANGEROUS CONTRAPTIONS BUT IN THE EVENT SHE SURVIVES HER OWN CRASHING DESCENT TO RECORD HOW THE HYSTERICAL GROUP SLOWLY DIVIDED ALONG GENDER AND CULTURAL LINES INTO PRUDENT COWARDS SLITHERING ANGRILY TO THE BUS AND COMPETITIVE FOOLS REACHING SILENTLY FOR THEIR LITTLE SLEDS THESE STORIES ARE MARVELOUS FILLED WITH TWISTS AND TURNS AND NEW EXPERIENCES THAT SHIMMER THROUGH LAYERS OF MEMORY TO YIELD SURPRISING ENDINGS THAT'S PARTICULARLY TRUE OF THE HEART OF PAKISTAN THE FLABBY RECIPIENT OF WHICH IS SOON DESCRIBED TO J AS THE LENDING PILLAR OF THE MIDDLE EAST WITH A DEPLORABLE HABIT OF STORING IN HIS HEAD IMPORTANT DETAILS OF HIS INTERNATIONAL DOINGS TO SAVE THE BRAIN SURGEONS STITCH HIM UP WITH A NEW HEART IN SUCH RECORD TIME MS JOHNSON AND J ARE LEFT WONDERING JUST HOW IT WAS PROCURED HE HAD VISIONS OF ARMED MEN IN DARK ALLEYS WAYLAYING LATENIGHT REVELERS A MONTH LATER MS JOHNSON IS BACK HOME READING THE PAPERS WHEN HER ATTENTION IS CAUGHT BY AN ARTICLE ABOUT A GIANT MONEYLAUNDERING SCHEME INVOLVING THE BANK OF CREDIT AND COMMERCE SHE CAN'T BELIEVE IT SHEIK ABEDI AND THE STRICKEN BANKER ARE ONE AND THE SAME HE HAD NEITHER RECOVERED NOR DIED AND HE STILL HASN'T FOUR YEARS LATER HE SITS SLUMPED IN A WHEELCHAIR GUARDING HIS SHABBY SECRETS WITH HIS NEW HEART 9303040034 930304 IN MEXICO CITY ONE RARELY SEES ANYTHING AS LOVELY AS A TREE BESET BY OZONE AND POACHERS CAPITAL'S FORESTS DWINDLE CAUSING AN ENVY OF GREEN BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY HERE IN THE WORLD'S MOST POPULOUS AND POLLUTED CITY A TREE IS SUCH A SCARCE RESOURCE THAT IT IS A CRIMINAL OFFENSE TO CHOP ONE DOWN EVEN IN YOUR OWN BACKYARD YOU NEED A SPECIAL PERMIT TO TOPPLE A TREE OR SAW OFF A LIMB OR HARVEST MISTLETOE EVEN MOSS WHICH HELPS PREVENT TREE LOSS FROM EROSION IS PROTECTED BY THE LAW IN DECEMBER AUTHORITIES BROKE UP A GANG MOVING SEVERAL TRUCKLOADS OF CONTRABAND MOSS THAT IT HAD PLANNED TO SELL AS HOLIDAY DECORATIONS IT WAS A CYNICAL ATTEMPT SAYS INVESTIGATOR ANTONIO GOMEZ PELEGRIN TO EXPLOIT THE FACT THAT PEOPLE IN MEXICO CITY ARE DESPERATE FOR ANYTHING GREEN HOW DESPERATE LANDSCAPER JUAN SILES DOES A THRIVING TRADE AS A SORT OF TREE BROKER HE IS CURRENTLY TRYING TO PERSUADE A WOMAN TO LET HIM TRANSPLANT A LARGE OAK FROM HER PROPERTY TO THE YARD OF A WEALTHY BUT GREENSTARVED CLIENT AN EIGHTTON CRANE WOULD CARRY THE TREE WITH ITS ROOTS WRAPPED IN A PLASTER AND CONCRETE CAST TO ITS SECOND HOME I TELL YOU HONESTLY SAYS MR SILES WHO STANDS TO EARN A HEALTHY COMMISSION ON THIS TRANSACTION HER PARLOR WOULD LOOK MUCH BETTER WITH MORE SUNLIGHT THAT IS LIFE IN THE BIG CITY TREES NOW COVER ONLY 2 OF THE AREA OF LA CAPITAL COMPARED WITH 21 IN THE 1950S SAYS CONSUELO BONFIL A BIOLOGIST AT THE NATIONAL UNIVERSITY THE SAD FATE OF THIS METROPOLIS'S TREES CAN BE SEEN ON THE SOUTHWEST EDGE OF TOWN IN AN AREA KNOWN AS EL CEMENTERIO OR THE CEMETERY THERE ARE NO TOMBSTONES ONLY TREE STUMPS EMISSIONS FROM MEXICO CITY'S THREE MILLION AUTOMOBILES AND 30000 FACTORIES HAVE KILLED A THIRD OF THE SACRED FIRS IN THIS ONCETHRIVING FOREST SAYS PLANT PATHOLOGIST MARIA DE LOURDES DE BAUER THE WOODLAND'S DEMISE DATES BACK TO THE 1960S WHEN THE FIRS' GROWTH RINGS ABRUPTLY NARROWED POSTMORTEMS SHOW THE LEAVES OF DECIDUOUS TREES IN SURROUNDING GROVES ALSO BEGAN CHANGING COLOR EARLIER THAN BEFORE NOW THEY BEGIN FALLING IN AUGUST INSTEAD OF OCTOBER EXPERTS SAY THE LEADING TREE KILLER IS OZONE WHICH EXCEEDED LEVELS CONSIDERED SAFE FOR HUMANS 341 DAYS LAST YEAR TREES WEAKENED BY OZONE BECOME VULNERABLE TO ALL MATTER OF INFIRMITIES FROM FUNGI TO BARKSTRIPPING WORMS TO TRY TO WARD OFF THESE PLAGUES PEOPLE OFTEN WHITEWASH TREE TRUNKS WITH LIME SCIENTISTS DEBATE THE EFFICACY OF THIS TECHNIQUE BUT FROM AN AESTHETIC STANDPOINT PEOPLE TEND TO AGREE THAT WHITEWASHED TREES HAVE ALL THE CHARM OF UTILITY POLES DIRT THIEVES TREES ARE ALSO IMPERILED BY THE THOUSANDS OF MIGRANTS WHO COME TO THE CAPITAL TO BUILD A NEW LIFE WITH WHATEVER CONSTRUCTION MATERIALS HAPPEN TO BE HANDY JOSE ARIAS A RECENTLY RETIRED ENVIRONMENTAL OFFICER HAS SEEN HUMANS DO BRUTAL THINGS TO TREES THERE WERE FOR INSTANCE THE SQUATTERS WHO IN ONE DAY REDUCED A STAND OF AGED CYPRESS TREES TO SO MUCH MULCH THEN THERE WERE THE MIGRANTS WHO UPROOTED THE SEEDLINGS ON A NEWLY REFORESTED ACRE LEAVING BEHIND AN ACRE OF HOLES THERE IS ONLY ONE THING THAT MAKES MR ARIAS MADDER THAN TREE THIEVES IT'S EVEN MORE UPSETTING WHEN THEY STEAL DIRT HE SAYS STEAL DIRT THERE'S NOT ENOUGH YOU KNOW INDEED IF LIFE WEREN'T TOUGH ENOUGH FOR TREES HERE FOR A NUMBER OF REASONS THE CITY IS SLOWLY SINKING 30 FEET IN SOME PLACES NO ONE IS IMMUNE FROM THE DEARTH OF TREES MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI RECENTLY HIRED MR SILES TO TRUCK IN 120 FULLGROWN PINE TREES FROM THE LANDSCAPER'S PROVINCIAL NURSERIES AND PLANT THEM AROUND THE PRESIDENTIAL RESIDENCE LOS PINOS OR THE PINES IT SEEMS THAT PINES HAVEN'T BEEN THRIVING ON THE GROUNDS OF THE PINES SOME OF MR SILES'S TREEMOVING REQUESTS ARE MORE PECULIAR THERE WAS THE MAN WHO WAS TRYING TO DECORATE HIS 10THFLOOR OFFICE IN THE UPSCALE POLANCO DISTRICT A MURAL WOULD HAVE BEEN THE OBVIOUS CHOICE BUT THERE ARE PLENTY OF MURALS IN MEXICO CITY HE DECIDED THAT FEW THINGS ARE AS RARE IN MEXICO CITY AS A TREE MR SILES SAYS PLANTING THE TREE INSIDE THE BUILDING HAD THE ADDED MERIT OF MAKING IT HARDER FOR ANYONE TO TAKE AN AX TO IT THE WOODPECKER SOLUTION THERE WERE HOWEVER CERTAIN LOGISTICAL OBSTACLES THE TREETOP WAS TO STICK OUT THE WINDOW REQUIRING THE TRUNK TO BE COCKED AT APPROXIMATELY A 25DEGREE ANGLE MR SILES CHECKED HIS NURSERIES AND FOUND AN OAK THAT HAD BEEN BENT BY A BOLT OF LIGHTNING IT WAS AS THOUGH THAT TREE WAS ALWAYS MEANT TO GO IN THAT BUILDING HE SAYS THIS MAY SOUND LIKE A LOT OF EFFORT FOR A LITTLE GREEN BUT IT IS SIMPLICITY ITSELF COMPARED WITH SOME TREESAVING SCHEMES THE MEXICAN ECOLOGICAL MOVEMENT PROPOSES CREATING A HORSERIDING TREE PATROL THAT WOULD BE A CROSS BETWEEN THE MOUNTIES AND THE FEDERALES OTHER VISIONARIES SUGGEST WOODPECKER AVIARIES WOODPECKERS SERVE THE SALUTARY PURPOSE OF PREYING ON PESTS THAT KILL OZONEWEAKENED TREES BUT NOW MANY OF THE BIRDS THEMSELVES HAVE SUCCUMBED TO THE CAPITAL'S BAD AIR AND EXPERTS FOUND THE PROPOSED WOODPECKER NURSERIES TO BE IMPRACTICAL FOR MANY REASONS BESIDES THE OBVIOUS CONTRIBUTION THEY WOULD MAKE TO NOISE POLLUTION THE CITY GOVERNMENT'S SOLUTION IS MORE DIRECT PLANT MORE TREES IN WHAT IS BILLED AS THE WORLD'S LARGEST URBAN REFORESTATION PROGRAM THE WAY OFFICIALS SEE IT PLANTING A THICKET OF 175 MILLION TREES AROUND THE CITY'S PERIMETER WILL NOT ONLY MAKE THE CAPITAL GREENER BUT ALSO CREATE A NATURAL BARRIER TO FURTHER URBAN EXPANSION IT IS EARLY BUT THE EMERGING TREE LINE SEEMS FAR LESS IMPREGNABLE THAN ITS GRANDIOSE NICKNAME LA CORTINA VERDE OR THE GREEN CURTAIN WOULD SUGGEST THE MORTALITY RATE OF THE NEWLY PLANTED SAPLINGS HAS BEEN 40 ABOUT TWICE THE AVERAGE OF INTERNATIONAL REFORESTATION PROGRAMS SAYS MANUEL FUENTES BOVE ONE OF THE PROGRAM'S DIRECTORS RETURN OF THE EAGLES ONE SUCCESS STORY HAS BEEN THE REHABILITATION OF XOCHIMILCO A ONCE VERDANT ZONE OF CANALS THAT HAD LATELY DEGENERATED INTO A TREELESS SUMP ON A RECENT DAY SEBASTIAN FLORES A LOCAL OFFICIAL STEERED A MOTORBOAT THROUGH A CLEANEDUP CHANNEL FLANKED BY THOUSANDS OF JUSTPLANTED SEEDLINGS THE AREA STILL BARELY RESEMBLES WHAT THE 45YEAROLD MR FLORES REMEMBERS FROM HIS BOYHOOD WHEN THE VEGETATION SURROUNDING THE CANAL WAS SO DENSE AND THE ANIMAL LIFE SO RICH THAT HE WAS AFRAID TO VISIT IT ALONE BUT SLOWLY THE SITE IS COMING BACK TO LIFE MR FLORES SPIES TWO EAGLES NESTING IN ONE OF THE SURVIVING OLDER TREES THE FIRST EAGLES HE HAS SEEN THERE IN 25 YEARS BUT REFORESTATION FACES ANY NUMBER OF BARRIERS TO TAKING ROOT ON THE MORE HEAVILY WOODED SOUTHWEST PERIMETER FIREFIGHTER JAVIER BOLANOS ASSEMBLES HIS CREW ONE CRISP CLEAR DAWN AS THEIR TRUCK PASSES THE NEW SAPLINGS PUSHING FOR ROOM ALONGSIDE TALL PINE STANDS THE FIREMEN ENCOUNTER A ROGUES' GALLERY OF TREE KILLERS SHEPHERDS SEEKING TO EXPAND PASTURES RELIGIOUS PILGRIMS CARELESS ABOUT DOUSING CAMPFIRES AND A SETTLER LEADING A BURRO WITH A CHAIN SAW STRAPPED ON ITS BACK BY MIDMORNING AS THE CITY BEYOND THE TREE LINE COMES TO LIFE THE FIREFIGHTERS CONFRONT A NEW OBSTACLE THICK GRAY SMOG IT COVERS THE TREETOPS SAYS MR BOLANOS SO YOU CAN'T SEE THE SMOKE FROM THE FOREST FIRES 9303040033 930304 WHO'S NEWS TRAVELERS MAKES APPOINTMENTS HARTFORD CONN TRAVELERS CORP NAMED ELLIOT F GERSON PRESIDENT OF ITS MANAGED HEALTHCARE AND EMPLOYEEBENEFITS BUSINESS SUCCEEDING JOSEPH T BROPHY WHO WILL RETIRE MARCH 31 MR GERSON 40 YEARS OLD WAS SENIOR VICE PRESIDENT OF TRAVELERS' FINANCIAL SERVICES DEPARTMENT HE WILL BE SUCCEEDED IN THAT POSITION BY ROBERT E EVANS 38 PREVIOUSLY VICE PRESIDENT FOR PRODUCT MANAGEMENT IN FINANCIAL SERVICES MAJOR INSURERS HAVE BEEN EXPANDING THEIR MANAGEDCARE BUSINESS AS CORPORATIONS PRESS TO CONTAIN EMPLOYEE HEALTHCARE COSTS AND WASHINGTON MOVES TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM LAST YEAR ABOUT 36 BILLION OR 37 OF TRAVELERS' TOTAL REVENUE OF 97 BILLION WAS DERIVED FROM MANAGED HEALTH CARE AND EMPLOYEE BENEFITS A SPOKESMAN CALLED MANAGED CARE THE COMPANY'S FASTESTGROWING SECTOR 9303040032 930304 PRUDENTIAL SECURITIES' RESERVES FOR SUITS OVER PARTNERSHIPS NEAR 500 MILLION BY MICHAEL SICONOLFI AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE LEGAL TAB FOR PRUDENTIAL SECURITIES INC'S SOURED LIMITEDPARTNERSHIP BUSINESS A HANGOVER FROM THE ROARING 1980S IS FAST APPROACHING 500 MILLION THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SAID IT SET ASIDE 125 MILLION IN RESERVES LAST YEAR FOR LEGAL COSTS FROM LAWSUITS INVOLVING REAL ESTATE ENERGY AND OTHER LIMITED PARTNERSHIPS ITS BROKERS SOLD IN THE 1980S THAT BRINGS TO NEARLY 400 MILLION THE RESERVES THAT PRUDENTIAL SECURITIES HAS SET ASIDE IN THE PAST THREE YEARS TO DEAL WITH LAWSUITS BY DISGRUNTLED LIMITEDPARTNERSHIP INVESTORS AMONG OTHER THINGS AND THIS YEAR PRUDENTIAL PLANS TO SET ASIDE ANOTHER 80 MILLION TO 100 MILLION IN RESERVES PEOPLE FAMILIAR WITH THE FIRM SAID WE'RE TRYING TO STAY AHEAD OF THE GAME HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW YESTERDAY THOUGH HE WOULDN'T SPECIFY THE EXACT AMOUNT THE DISCLOSURE CAME AS PRUDENTIAL INSURANCE THE NATION'S LARGEST INSURANCE COMPANY REPORTED A 61 DROP IN NET INCOME FOR 1992 LARGELY BECAUSE OF A HUGE 900 MILLION LOSS AS A RESULT OF HURRICANE ANDREW PRUDENTIAL WHICH IS OWNED BY POLICYHOLDERS INSTEAD OF STOCKHOLDERS EARNED 500 MILLION FOR THE YEAR DOWN FROM 13 BILLION IN 1991 THE PROFIT AFTER ACCOUNTING ADJUSTMENTS CONTRIBUTED TO A 100 MILLION INCREASE IN PRUDENTIAL'S SURPLUS OR NET WORTH RAISING IT TO 98 BILLION AT YEAR END SURPLUS INCREASED BY 17 BILLION IN 1991 WE HAD 364 GOOD DAYS IN 1992 SAID PRUDENTIAL INSURANCE CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT WINTERS REFERRING TO THE DAY IN AUGUST WHEN HURRICANE ANDREW HIT SOUTH FLORIDA DESPITE THE 125 MILLION RESERVE PRUDENTIAL SECURITIES STILL POSTED SOLID 1992 PROFIT THE BIG BROKERAGE FIRM HAD NET INCOME OF 150 MILLION IN 1992 A 25 DROP FROM A RECORD 201 MILLION IN 1991 THE MAIN REASON FOR THE DROP A TAX BITE OF 71 MILLION LAST YEAR COMPARED WITH 45 MILLION IN 1991 THE TAX BENEFIT IN 1991 STEMMED FROM TAXLOSS CARRYFORWARDS FROM BIG LOSSES IN PREVIOUS YEARS THE CONTINUED ADDITIONS TO PRUDENTIAL SECURITIES' RESERVES SIGNAL THAT THE NATION'S FOURTHLARGEST BROKERAGE FIRM HASN'T BEEN ABLE TO SHAKE OFF THE PARTNERSHIP DEBACLE PRUDENTIAL WAS ONE OF WALL STREET'S BIGGEST SELLERS OF LIMITEDPARTNERSHIP INVESTMENTS MANY OF WHICH HAVE SOURED AND TRIGGERED INVESTOR LAWSUITS MANY OF THE PARTNERSHIP INVESTMENTS WERE HURT BY TAXLAW CHANGES AND THE REALESTATE MARKET'S WOES IN SOME CASES THESE SALES WERE MADE IMPROPERLY MR SIMMONS SAID BUT THE GREAT GREAT MAJORITY OF THEM WERE DONE ON AN UPANDUP BASIS THE DISCLOSURE ABOUT PRUDENTIAL'S RESERVES COMES AMID CONTROVERSY OVER THE BROKERAGE FIRM'S PROPOSAL TO SETTLE CLASSACTION LITIGATION WITH INVESTORS WHO SPENT MORE THAN 14 BILLION FOR ENERGYPARTNERSHIP INTERESTS LATE LAST MONTH A FEDERAL JUDGE IN NEW ORLEANS SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF THE SETTLEMENT PROPOSAL WHICH WOULD GIVE THE INVESTORS A SMALL FRACTION OF THEIR ORIGINAL INVESTMENTS THE JUDGE SAID MORE INFORMATION WAS NECESSARY BEFORE HE COULD RULE ON THE PROPOSED SETTLEMENT MEANWHILE SECURITIES REGULATORS IN SEVERAL STATES ARE CONDUCTING INVESTIGATIONS OF THE PARTNERSHIP SALES BY PRUDENTIAL THEN KNOWN AS PRUDENTIALBACHE SECURITIES INC THE JUDGE IN NEW ORLEANS ACKNOWLEDGED THOSE INVESTIGATIONS WHEN HE DECIDED TO PUT OFF ANY RULING ON THE SETTLEMENT FOR ITS PART PRUDENTIAL SECURITIES SAYS INVESTORS IN THE ENERGYPARTNERSHIP CASE ALREADY HAVE RECEIVED DISTRIBUTIONS OF ABOUT 616 MILLION OR 43 OF THEIR ORIGINAL INVESTMENT SAID A PRUDENTIAL SPOKESMAN WE CONTINUE TO FEEL IT'S A FAIR SETTLEMENT INVESTORS HAVEN'T BEEN THE ONLY UNHAPPY ONES SOME PRUDENTIAL BROKERS SAY THEY HAVE LOST CUSTOMERS BECAUSE OF THE LIMITED PARTNERSHIP WOES INDEED PRUDENTIAL SECURITIES SCUTTLED LAST YEAR'S PLANS TO SELL ITS CUSTOMERS NEW LIMITED PARTNERSHIPS WITH DIFFERENT STRUCTURES THAN THE 1980S VERSIONS WE SIMPLY COULDN'T SELL THEM MR SIMMONS SAYS THERE WAS SUCH A RESIDUE OF FEAR ESPECIALLY AMONG OUR OWN PEOPLE AT PARENT PRUDENTIAL INSURANCE TOTAL REVENUE WAS FLAT AT 45 BILLION ASSETS ROSE TO 200 BILLION FROM 189 BILLION THE FACT THAT THEY WERE ABLE TO MAINTAIN THEIR CAPITAL BASE DESPITE HURRICANE ANDREW IS A CREDIT TO PRUDENTIAL'S OVERALL EARNINGS CAPACITY SAID LARRY MAYEWSKI A VICE PRESIDENT AT AM BEST CO PRUDENTIAL NOW RANKS AS THE NATION'S SECOND BIGGEST ORIGINATOR OF HOME MORTGAGE LOANS LAST YEAR RISING FROM THE NO 7 SPOT MR WINTERS SAID BUOYED BY THE REFINANCING BOOM PRUDENTIAL HOME MORTGAGE ORIGINATED MORE THAN 285 BILLION IN NEW MORTGAGES LAST YEAR THE BIGGEST PASADENA CALIFBASED COUNTRYWIDE CREDIT INDUSTRIES INC ORIGINATED 305 BILLION PRUDENTIAL AND COUNTRYWIDE HAVE BEEN MORE AGGRESSIVE ABOUT GETTING BUSINESS SAID DAVID HOCHSTIM AN ANALYST AT BEAR STEARNS & CO ROBERT J BRENNAN CONTRIBUTED TO THIS ARTICLE 9303040031 930304 WHO'S NEWS NATIONAL GAS & OIL CO NATIONAL GAS & OIL CO NEWARK OHIO PATRICK J MCGONAGLE 38 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS HOLDING COMPANY AND EACH OF ITS UNITS THE APPOINTMENT WAS EFFECTIVE FEB 25 MR MCGONAGLE HAD MOST RECENTLY SERVED AS VICE PRESIDENT AND GENERAL COUNSEL OF THE HOLDING COMPANY WHICH HAS UNITS ENGAGED IN THE PURCHASE DISTRIBUTION AND MARKETING OF NATURAL GAS AND IN THE DEVELOPMENT OF OIL AND GAS PRODUCTION HE SUCCEEDS JW STRAKER WHO WILL REMAIN CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE EXECUTIVE COMMITTEE MR STRAKER HAD BEEN SERVING AS INTERIM PRESIDENT AND CHIEF EXECUTIVE SINCE THE NOV 19 RESIGNATION OF RICHARD A JACOBS WHO LEFT NATIONAL GAS TO PURSUE OTHER INTERESTS AFTER A DISAGREEMENT WITH THE BOARD REGARDING CORPORATE OBJECTIVES THE COMPANY ALSO PROMOTED LAWRENCE P HAREN 38 TO THE POST OF EXECUTIVE VICE PRESIDENT ALSO EFFECTIVE FEB 25 HE HAD BEEN A VICE PRESIDENT HE REMAINS TREASURER AND CHIEF FINANCIAL OFFICER OF THE COMPANY AND ITS UNITS 9303040030 930304 INTERNATIONAL MICROSOFT TARGETS SOFTWARE PIRACY BY JAPAN PC USERS BY DAVID P HAMILTON AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO MICROSOFT CORP IS TAKING ITS AGGRESSIVE ANTIPIRACY CAMPAIGN TO JAPAN ASSERTING THAT RAMPANT ILLEGAL SOFTWARE COPYING IS SEVERELY DAMAGING ITS BUSINESS IN THE LARGEST PERSONAL COMPUTER MARKET OUTSIDE THE US MICROSOFT WILL SEND LETTERS MONDAY TO 450 COMPUTER COMPANIES AND SOFTWARE DEVELOPERS IN JAPAN INCLUDING THE LOCAL SUBSIDIARIES OF US AND EUROPEAN FIRMS ASKING THEM TO CLEAN UP THE SITUATION MAKOTO NARUKE PRESIDENT OF THE SOFTWARE GIANT'S TOKYO UNIT SAID IN AN INTERVIEW THE ILLEGAL COPYING RATE IN JAPAN IS FOUR TIMES WORSE THAN IN THE US MR NARUKE SAID HE NOTED THAT THE JAPANESE PERSONALCOMPUTER MARKET ACCOUNTS FOR 18 OF ALL WORLDWIDE INDUSTRY SALES BUT THE JAPANESE SOFTWARE MARKET ACCOUNTS FOR ONLY 5 OF GLOBAL VOLUME MR NARUKE PLAYED DOWN ANY NOTION THAT MICROSOFT WAS CONFRONTING JAPANESE USERS AT THIS POINT THE WORLD'S NO 1 SOFTWARE COMPANY ISN'T PLANNING TO FILE ANY LAWSUITS A MOVE THAT WOULD BE CONSIDERED CRUDE IN JAPAN THOUGH THE LETTER SAYS MICROSOFT WOULD FILE SUITS IN EXTREME CASES THIS COUNTRY THIS CULTURE IT DOESN'T WANT CIVIL LAWSUITS MR NARUKE SAID BUT MICROSOFT IS CLEARLY PLAYING HARDBALL JAPANSTYLE BETTING THAT THE PUBLICITY WILL SHAME OFFICIALS HERE INTO GREATER ADHERENCE TO SOFTWARE PROTECTION LAWS HALF OF PC USERS AREN'T AWARE THEY'RE DOING A BAD THING BY COPYING HE SAID MICROSOFT'S ACTIONS WILL LIKELY TOUCH A VERY RAW NERVE WHILE SOFTWARE PIRACY IS CONSIDERED RAMPANT THROUGHOUT ASIA JAPANESE OFFICIALS IN RECENT YEARS HAVE PRIDED THEMSELVES ON DEVELOPING STRICT COPYRIGHT PROTECTIONS JAPANESE COMPANIES HAVE BECOME INCREASINGLY AGGRESSIVE IN DEFENDING THEMSELVES AGAINST US INTELLECTUAL PROPERTY LAWSUITS IN RECENT YEARS INSISTING THAT THEIR OLD REPUTATION FOR ILLEGAL COPYING IS NO LONGER DESERVED STILL AS MICROSOFT'S CLAIMS ILLUSTRATE SOFTWARE IS LARGELY CONSIDERED AN ADJUNCT TO HARDWARE IN JAPAN'S MANUFACTURINGORIENTED CULTURE NOT A PRODUCT WORTHY OF PAYING FOR ON ITS OWN THAT'S ONE REASON WHY JAPAN HAS MANY COMPETITIVE COMPUTER MAKERS BUT NO WORLDWIDE COMPETITIVE SOFTWARE COMPANIES AND WHY JAPAN'S OWN SOFTWARE MARKET IS DOMINATED BY MICROSOFT AND OTHER US FIRMS PEOPLE IN JAPAN JUST DON'T UNDERSTAND WHAT SOFTWARE IS SAID DAVID POLLACK AN OFFICIAL AT THE AMERICAN ELECTRONICS ASSOCIATION'S JAPAN OFFICE WHO HAS ACTIVELY PROMOTED US SOFTWARE SALES IN JAPAN THERE'S A LACK OF SEPARATION IN THEIR MINDS BETWEEN SOFTWARE AND HARDWARE IF THAT PERCEPTION IS CHANGED IT WON'T JUST REDUCE ILLEGAL COPYING BUT WILL ALSO ENHANCE APPLICATION SALES A YEAR AGO MICROSOFT CLAIMED TO HAVE BROKEN UP A SOFTWARE COUNTERFEIT RING OPERATING IN TAIWAN HONG KONG AND CHINA MICROSOFT SAID THE RING WAS SELLING 75000 COPIES OF ILLEGAL MICROSOFT SOFTWARE WORLDWIDE EACH MONTH 9303040029 930304 HEARD ON THE STREET DEAL OF THE CENTURY' NOT FOR RJR INVESTORS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL THE BIGGEST TAKEOVER IN US HISTORY THE 25 BILLION BUYOUT OF RJR NABISCO HOLDINGS HASN'T TURNED OUT SO STUPENDOUSLY YET FOR THE INVESTORS WHO HELPED KOHLBERG KRAVIS ROBERTS FINANCE THE DEAL DESPITE THE HOOPLA SURROUNDING THE DEAL OF THE CENTURY IN FEBRUARY 1989 KKR'S INSTITUTIONAL INVESTORS WOULD HAVE DONE AS WELL OR EVEN BETTER BY SIMPLY PUTTING THEIR BILLIONS INTO A STOCKMARKET INDEX FUND AS THEY HAVE BY LETTING KKR FUNNEL MUCH OF THEIR MONEY INTO THE TOBACCO AND FOOD GIANT THIS WEEK'S DECISION BY RJR TO ISSUE SPECIAL STOCK TIED TO ITS FOOD BUSINESS HIGHLIGHTS THE NEED FOR RJR TO BOOST ITS STOCKMARKET PERFORMANCE INVESTORS IN KKR'S CELEBRATED BUYOUT FUND COULD HAVE DONE EVEN BETTER JUST BY BUYING STOCK IN ANOTHER COMPANY THAT'S IN TWO OF THE SAME BUSINESSES AS RJR NABISCO NAMELY PHILIP MORRIS SINCE FEBRUARY 1989 THE PRICE OF A SHARE OF THAT TOBACCO BEER AND FOOD COMPANY HAS MULTIPLIED BY 25 TIMES ROY BURRY WHO FOLLOWS TOBACCO AND BEVERAGE STOCKS FOR KIDDER PEABODY SAYS ONE BIG REASON FOR THE DIFFERENCE IN INVESTMENT RETURNS BETWEEN PHILIP MORRIS AND RJR IS THAT KKR PAID AN ENORMOUS PREMIUM OVER THE STOCK PRICE WHEN THEY BOUGHT RJR AND TOOK IT PRIVATE MR BURRY SAYS RJR HAS BEEN HELD BACK BECAUSE IT HAS A SMALLER PRESENCE THAN PHILIP MORRIS IN THE FASTGROWING OVERSEAS TOBACCO BUSINESS ALSO HE SAYS RJR HAD TO SPEND BIG ON MARKETING TO ARREST ITS DECLINING DOMESTIC CIGARETTE MARKET SHARE AND HAD TO SPEND HEAVILY TO UPDATE ITS FOOD OFFERINGS THE INVESTORS' RETURNS ON THE RJR STAKE WHICH AMOUNT TO 11 TO 12 ANNUALLY THREATEN TO DRAG DOWN KKR'S OVERALL INVESTMENT TRACK RECORD WHICH IN THE 1980S EXCEEDED 30 A YEAR THE RJR RETURNS ARE ALL THE MORE IMPORTANT FOR THE KKR BUYOUT POOL BECAUSE THE 32 BILLION IT INVESTED IN RJR REPRESENTS MORE THAN HALF OF THE GIANT 56 BILLION BUYOUT FUND KKR RAISED IN 1987 KKR LATER RAISED AN ADDITIONAL 18 BILLION TO SUPPLEMENT THAT FUND KKR'S GOAL ON NEW INVESTMENTS IS A RETURN OF 20 TO 30 ANNUALLY EXECUTIVES OF KKR AND RJR DECLINED TO COMMENT CITING LEGAL RESTRICTIONS ON PUBLIC STATEMENTS WHILE THE NEW FOODSTOCK OFFERING IS PENDING HOWEVER JAY FUEL A SENIOR EQUITIES INVESTMENT OFFICER AT THE OREGON PUBLIC EMPLOYEES RETIREMENT FUND ONE OF KKR'S LARGEST INVESTORS SAYS IT'S PREMATURE TO ADDRESS THE QUESTION OF RETURNS ON THE RJR BUYOUT TIME WILL TELL THE ULTIMATE SUCCESS HE SAYS ADDING THAT HE IS HAPPY ABOUT THE PLAN TO ISSUE THE NEW STOCK IT'S A LONGERTERM INVESTMENT AND THEY SHOULD BE GRADED OVER THE LONG TERM SAYS DAVID O'DONOVAN A PENSIONFUND CONSULTANT AT SEI CORP IN WAYNE PA INDEED OTHERS SAY RJR'S STOCK PRICE IS AT A LOW EBB FOR MANY REASONS AND COULD ALWAYS REBOUND STRONGLY BUT THE LONGER THE KKR BUYOUT FUND HOLDS ITS 504 STAKE IN THE COMPANY THE SMALLER THE IMPACT ANY GIVEN MARKET GAIN WILL HAVE ON THE ANNUAL RETURN THE ULTIMATE MEASUREMENT OF ANY MONEY MANAGER'S TRACK RECORD HERE'S HOW THE MATH WORKS SO FAR KKR'S BUYOUTFUND INVESTORS PUT 15 BILLION IN EQUITY INTO RJR ON FEB 8 1989 WHEN THE BUYOUT CLOSED AT A PRICE OF 5 A SHARE THE SAME FUND KICKED IN AN ADDITIONAL 17 BILLION IN ADDITIONAL EQUITY AT 625 A SHARE ON JULY 16 1990 AS PART OF A REFINANCING TO RETIRE SOME TROUBLESOME JUNK BONDS RJR'S STOCK PRICE PEAKED AT 13 A SHARE SHORTLY AFTER RJR RETURNED TO PUBLIC OWNERSHIP IN APRIL 1991 AT AN OFFERING PRICE OF 11 1/4 THE SHARES HAVE DRIFTED DOWNWARD EVER SINCE THE REASONS RANGE FROM PRICE COMPETITION FROM GENERIC CIGARETTES AND HOUSEBRAND COOKIES TO MOST RECENTLY FEARS ABOUT NEW TAXES ON TOBACCO TO FINANCE THE CLINTON HEALTHCARE PLAN ON TUESDAY WHEN RJR ANNOUNCED THE PLAN TO CREATE A NEW CLASS OF DIVIDENDPAYING STOCK PEGGED TO ITS FOOD BUSINESS RJR STOCK SURGED 5/8 OR 75 TO 9 ON VOLUME OF 13 MILLION SHARES AT THAT PRICE THE INVESTORS HAD EARNED GROSS RETURNS OF 80 IN 408 YEARS ON THEIR FIRST EQUITY STAKE AND 44 AFTER 267 YEARS ON THE SECOND EQUITY STAKE YESTERDAY RJR STOCK SLIPPED 1/4 TO 8 3/4 BUT TO FIGURE OUT HOW THE BIG INVESTORS ARE REALLY DOING YOU THEN HAVE TO SUBTRACT THE MANAGEMENT FEES KKR CHARGES FIRST KKR GETS 15 ANNUALLY ON ALL MONEY COMMITTED TO ITS BUYOUT FUNDS BY INVESTORS THEN KKR ALSO GETS 20 OF THE EVENTUAL PROFITS ON EACH DEAL AS OF TUESDAY APPLYING THOSE TWO FACTORS REDUCES THE GROSS RETURNS TO 591 ON THE FIRST EQUITY STAKE AND 32 ON THE SECOND IN EACH CASE THOSE RETURNS LAG BEHIND THE TOTAL RETURN FOR THE STANDARD & POOR'S 500STOCK INDEX TOTAL RETURN INCLUDES DIVIDENDS RJR COMMON HOWEVER DOESN'T PAY A DIVIDEND ON AN ANNUAL BASIS THE FIRST EQUITY STAKE HAS GENERATED A RETURN OF 12 COMPARED WITH 139 FOR THE S&P THE SECOND EQUITY STAKE HAS RETURNED 11 COMPARED WITH 112 FOR THE S&P ACCORDING TO MORNINGSTAR INC IN CHICAGO WHICH SUPPLIED THE S&P DATA IN SOME WAYS THE RJR RETURNS MAY TYPIFY A PATTERN AMONG MONEY MANAGERS KNOWN AS REVERSION TO THE MEAN HOT MONEY MANAGERS WHO RACK UP SIZZLING RETURNS WITH A FEW HUNDRED MILLION DOLLARS ARE OFTEN DELUGED WITH BILLIONS BY SCORES OF INVESTORS SALIVATING FOR THE SAME RESULTS BUT THE MONEY MANAGERS' PERFORMANCE WITH THE GARGANTUAN SUMS OFTEN REVERTS TO THE MARKET AVERAGES OR WORSE PARTLY BECAUSE OF THE DIFFICULTY OF REPEATING THEIR SUCCESS ON A LARGER SCALE MARKET CONDITIONS MAY CHANGE OR TECHNIQUES THAT WORKED IN ONE PERIOD MAY NOT BE AS EFFECTIVE IN ANOTHER IN ORDER TO CONTINUE RAISING MONEY AND JUSTIFY THE BIG FEES MANAGERS OF LEVERAGEDBUYOUT FUNDS AND OTHER ALTERNATIVE INVESTMENTS GENERALLY TRY TO SHOW THAT THEY CAN BEAT RETURNS AVAILABLE TO INVESTORS IN THE STOCK MARKET AS A WHOLE THE STOCK MARKET'S LONGTERM RETURNS HAVE AVERAGED 104 IN THE 1980S STOCKS RETURNED 175 ANNUALLY KKR CERTAINLY HASN'T LOST ITS INVESTING TOUCH LAST YEAR IT INVESTED A 300 MILLION EQUITY STAKE IN A 14 BILLION BUYOUT OF AMERICAN RE A REINSURANCE UNIT SOLD BY AETNA LIFE & CASUALTY KKR QUICKLY TOOK THE COMPANY PUBLIC AFTER REINSURANCE RATES SOARED AND THE CURRENT STOCK PRICE VALUES KKR INVESTORS' EQUITY STAKE AT NEARLY FOUR TIMES WHAT KKR PAID BUT AT THIS POINT A RETURN LIKE THAT ON THE MUCH LARGER RJR INVESTMENT SEEMS LIKE A LONG SHOT 9303040028 930304 CORRECTIONS & AMPLIFICATIONS INTEGRATED RESOURCES INC'S PROPOSED PLAN OF CHAPTER 11 REORGANIZATION INCLUDES AN OFFER TO PAY GENERAL UNSECURED CREDITORS 38 CENTS FOR EACH DOLLAR OF CLAIMS IN A COMBINATION OF CASH DEBT AND STOCK JUNIOR CREDITORS MAINLY SUBORDINATED DEBTHOLDERS WOULD GET NOTHING UNDER THE COMPANY'S PLAN AN ARTICLE YESTERDAY INCORRECTLY SAID THE GENERAL UNSECURED CREDITORS WHOE MAINLY TRADE CREDITORS WOULD GET NOTHING UNDER THE COMPANY'S PLAN HUMANA INC SHAREHOLDERS WILL RECEIVE ONE SHARE OF GALEN HEALTH CARE INC STOCK FOR EVERY HUMANA SHARE THEY OWN WITHOUT HAVING TO EXCHANGE THE HUMANA SHARES AN ARTICLE IN YESTERDAY'S WHO'S NEWS COLUMN INCORRECTLY SAID THAT HUMANA SHARES CAN BE EXCHANGED FOR GALEN SHARES MEDIA LOGIC INC WILL PAY ITS 2FOR1 STOCK SPLIT MARCH 23 TO STOCK OF RECORD MARCH 16 IN AN ARTICLE YESTERDAY THE PAY DATE WAS MISSTATED BY THE COMPANY AS MARCH 16 9303040027 930304 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG MANAGING HOUSEHOLD HEALTHCARE COSTS HAS GROWN INCREASINGLY COSTLY AND COMPLICATED IN RECENT YEARS EVEN FOR FAMILIES LUCKY ENOUGH TO HAVE INSURANCE AS MEDICAL FEES HAVE SOARED MANY INSURANCE PLANS HAVE RAISED DEDUCTIBLES AND INTRODUCED COMPLICATED LIMITS AND FORMULAS GOVERNING WHAT THEY WILL PAY FOR THINGS ARE EVEN MORE COMPLEX IN HOUSEHOLDS WHERE BOTH SPOUSES WORK AND EACH HAS A DIFFERENT INSURER THAT PREFERS THE OTHER PICK UP MOST OF THE TAB THE RESULT IS THAT DEALING WITH MEDICAL CLAIMS NOW THREATENS TO RIVAL INCOMETAX PREPARATION AS A FAMILY'S MOST COMPLICATED TIMECONSUMING AND FINANCIALLY CRITICAL CHORE IT'S WORSE OF COURSE TO BE AMONG THE MILLIONS WITH NO INSURANCE AT ALL BUT THE SYSTEM'S COMPLEXITY IS ONE REASON HEALTHCARE REFORM IS SUCH A TOP PRIORITY FOR PRESIDENT CLINTON THAT HE PUT HIS WIFE HILLARY IN CHARGE OF THE PROJECT YOU CAN HOWEVER GET SOME RELIEF WITHOUT WAITING FOR THE GOVERNMENT TO FIX THE SYSTEM IF YOU USE A PERSONAL COMPUTER JUST AS TAX SOFTWARE HAS MADE 1040S AND THEIR ILK EASIER FOR COMPUTER OWNERS TO DEAL WITH A NEW CATEGORY OF SOFTWARE IS EMERGING TO PUT COMPUTERS TO WORK ORGANIZING AND SPEEDING THE PROCESS OF FILING MEDICALINSURANCE CLAIMS TWO SMALL NEW ENGLAND COMPANIES HAVE BEGUN SELLING SUCH HEALTHINSURANCE PROGRAMS ONE COMPANY TIME SOLUTIONS OF EASTON CONN SELLS A 70 PROGRAM CALLED MEDSURE WHICH RUNS ON EVEN LOWPOWERED IBMCOMPATIBLE PCS IT IS A TEXTSTYLE DOS PROGRAM MEANING IT DOESN'T REQUIRE MICROSOFT'S WINDOWS SOFTWARE SYSTEM TO WORK THE SECOND COMPANY TE CORP OF CAMPTON NH OFFERS MACCLAIMCHEK AND CLAIMCHEK FOR WINDOWS A 45 GRAPHICALSTYLE PACKAGE ISSUED IN TWIN VERSIONS THAT RUN ON APPLE COMPUTER'S MACINTOSH MACHINES AND IBMCOMPATIBLES USING WINDOWS BOTH PACKAGES MAINLY SOLD DIRECTLY BY THEIR PUBLISHERS KEEP DETAILED RECORDS OF EVERY DOCTOR AND HOSPITAL VISIT AND THE CLAIMS BASED ON THEM BOTH MAINTAIN PROFILES OF EVERY HEALTH POLICY YOU USE OF EVERY FAMILY MEMBER COVERED AND OF EVERY DOCTOR OR OTHER HEALTHCARE PROVIDER YOUR FAMILY USES THESE PROFILES ARE THEN COMBINED TO CREATE AN ENTRY FOR EACH CLAIM FOR INSTANCE IF YOUR DAUGHTER SUSIE VISITS DR SMITH FOR TREATMENT OF A SPRAINED ANKLE AND YOU FILE THE CLAIM WITH BLUE CROSS BOTH PROGRAMS CONSTRUCT A DETAILED RECORD OF THE CLAIM BY COMBINING DATA YOU'VE ENTERED PREVIOUSLY DESCRIBING SUSIE DR SMITH AND YOUR BLUE CROSS POLICY BUT THERE THE SIMILARITIES END OF THE TWO PRODUCTS I FOUND MEDSURE TO BE MUCH BETTER DESIGNED AND MORE POWERFUL IT IS LOADED WITH BACKGROUND MATERIAL ON HEALTH INSURANCE PERMITS DETAILED ANALYSIS AND COMPARISONS OF YOUR HEALTHINSURANCE POLICIES TRACKS AND TOTALS YOUR DEDUCTIBLES AND COINSURANCE PAYMENTS MADE BY A SECOND POLICY HANDLES MEDICARE CLAIMS AND MORE MEDSURE RECORDS SPECIFIC INFORMATION ON YOUR POLICY'S PROVISIONS FOR COVERING VARIOUS CONDITIONS AND TREATMENTS AND THEN USES THAT DATA IN ITS ANALYSES MEDSURE WILL EVEN AUTOMATICALLY PRINT OUT A BEAUTIFULLY PREPARED CLAIM FORM YOU CAN MAIL TO THE INSURER USING A REPLICA OF A STANDARD GOVERNMENT FORM THE HCFA1500 TO YOU INSURANCE AFICIONADOS THAT THE PUBLISHER SAYS MOST HEALTH INSURERS WILL ACCEPT IN LIEU OF THEIR PROPRIETARY FORMS WHEN ATTACHED TO A DETAILED DOCTOR'S BILL MY CARRIER SAID IT WOULD TAKE THE FORM BUT OTHERS MAY NOT THESE COMPUTERPRINTED CLAIM FORMS SAVE YOU THE TEDIUM OF FILLING OUT SUCH STANDARD INFORMATION AS NAME ADDRESS AND BIRTH DATE ON A LASER PRINTER MEDSURE CREATES THE FORM ON PLAIN PAPER WITH DOTMATRIX PRINTERS YOU MUST USE PREPRINTED FORMS THE PUBLISHER SELLS THE CLAIMCHEK PROGRAM REQUIRES A 30 ADDON MODULE TO PRINT CLAIM FORMS AND YOU MUST FIRST SEND IN YOUR PARTICULAR CARRIER'S FORM SO THE COMPANY CAN REPRODUCE IT NEITHER PROGRAM IS A BREEZE TO OPERATE THE FIRST TIME OUT THOUGH BOTH CAN BE LEARNED RELATIVELY QUICKLY MEDSURE IS ORGANIZED LIKE A BOOK WITH CHAPTERS AND PAGE NUMBERS A FORMAT THAT IN MY VIEW CAN BE DISORIENTING ADDING TO THE NEW USER'S CONFUSION IS THE FACT THAT MANY OF MEDSURE'S PAGES OR SCREENS MERELY CONTAIN BACKGROUND MATERIAL EXPLANATIONS AND DEFINITIONS ABOUT HEALTH INSURANCE RATHER THAN PLACES FOR ENTERING INFORMATION WHEN USER INPUT WAS CALLED FOR IT WASN'T ALWAYS CLEAR TO ME AT FIRST HOW TO START ENTERING DATA BUT THE MANUAL IS WELL WRITTEN THERE'S A TUTORIAL AND THE CONFUSION CLEARS UP QUICKLY THOUGH GRAPHICAL MACINTOSH AND WINDOWS PROGRAMS ARE USUALLY SIMPLER TO MASTER THAN DOS PACKAGES I FOUND CLAIMCHEK HARDER TO GET THE HANG OF THAN MEDSURE CLAIMCHEK'S SCREENS SEEMED CLUTTERED AND CONFUSING NAVIGATION WASN'T ALWAYS OBVIOUS AND SOME MENUS AND WINDOWS BEHAVED DIFFERENTLY THAN ON STANDARD GRAPHICAL PROGRAMS DISAPPEARING WHEN I MOVED THE MOUSE FOR INSTANCE AND CLAIMCHEK IS QUITE SLOW THOUGH THE PUBLISHER PLANS TO REWRITE IT THIS YEAR TO MAKE IT FASTER BUT THE MAIN DIFFERENCE BETWEEN THE TWO PACKAGES IS ONE OF SCOPE CLAIMCHEK IS ADEQUATE BUT IT'S JUST A DATABASE FOR TRACKING CLAIMS NOTHING MORE MEDSURE INCLUDES THAT FEATURE BUT HAS A MUCH MORE AMBITIOUS GOAL ENABLING USERS TO MANAGE THEIR HEALTH INSURANCE IN EVERY RESPECT FROM FILING CLAIMS TO UNDERSTANDING TECHNICAL TERMS EVALUATING AND COORDINATING POLICIES TRACKING OUTOFPOCKET MEDICAL EXPENSES EVEN KEEPING A FAMILY MEDICAL HISTORY I WONDER IF HILLARY CLINTON KNOWS ABOUT THIS 9303040026 930304 LEISURE & ARTS FILM A COP A GANGSTER AND A GIRL BY JULIE SALAMON THE TV MOVIE OF THE WEEK HAS GREATLY DIMINISHED OUR EXPECTATIONS FOR THE DRAMA THAT CAN BE WRUNG FROM REAL LIFE HOWEVER THE POLISH DIRECTOR AGNIESZKA HOLLAND HAS MANAGED TO MAKE THE PHRASE BASED ON ACTUAL EVENTS SEEM LIKE A BLESSING NOT A CURSE WITH EUROPA EUROPA SHE TOOK AN IMPROBABLE HOLOCAUST STORY ABOUT A JEWISH BOY WHO SURVIVED BY PRETENDING HE WAS ARYAN AND JOINING THE HITLER YOUTH AND MADE IT FEEL AS ETERNALLY TRUE AS THE BEST FICTION SHE'S DONE IT AGAIN WITH HER MOST RECENT FILM A PSYCHOLOGICAL SUSPENSE PICTURE CALLED OLIVIER OLIVIER THE BASIC FACTS CAME FROM THE NEWSPAPERS THE YOUNGER CHILD OF A FRENCH FAMILY DISAPPEARED ONE DAY THEN RETURNED A FEW YEARS LATER IN MS HOLLAND'S VERSION OF THE STORY THE FAMILY IS WILLING TO OVERLOOK THE QUESTIONS RAISED ABOUT THE AUTHENTICITY OF THEIR PRODIGAL SON BECAUSE HIS RETURN HAS MADE THEM SO HAPPY THE FILM'S SUSPENSE COMES FROM ITS MOST OBVIOUS QUESTION IS OLIVIER REALLY OLIVIER CLEARLY MS HOLLAND IS FASCINATED WITH THE IDEA OF DOUBLE LIVES AND THE WAY PEOPLE REINVENT THEMSELVES BUT THE MOVIE'S REAL POWER HAS LITTLE TO DO WITH THE ANSWERING OF RIDDLES THOUGH OF COURSE THE MYSTERY OF OLIVIER'S IDENTITY GIVES THE PICTURE ITS FORWARD PUSH WHAT GIVES THE PICTURE ITS RESONANCE HOWEVER ARE MS HOLLAND'S SHREWD INSIGHTS INTO THE WAY A FAMILY'S ALLIANCES AND PASSIONS SHIFT OFTEN FROM MOMENT TO MOMENT MS HOLLAND HAS SET HER STORY IN FRANCE WHERE SHE WAS LIVING WHEN SHE READ ABOUT THE CHILD THAT HAD DISAPPEARED THE DUVALS AS SHE CALLS HER FAMILY LIVE ON A LOVELY FARM ON THE SURFACE THEIR LIFE SEEMS BUCOLIC THE CHILDREN A GIRL AND A BOY NADINE AND OLIVIER SPEND SUMMER DAYS ROAMING WHEAT FIELDS CREATING A FANTASY WORLD FILLED WITH SPACE INVADERS AND OTHER MYSTERIOUS CREATURES THE FATHER IS A COUNTRY VETERINARIAN THE MOTHER IS BEAUTIFUL AND ADORES HER CHILDREN ESPECIALLY OLIVIER NOT FAR BENEATH THE SURFACE HOWEVER THE DUVALS ARE A MESS THE FATHER THINKS HE IS A FAILURE HIS BORED WIFE AGREES WITH HIM THE CHILDREN GENERALLY ESCAPE THEIR PARENTS' ANXIETIES WHEN THEY ARE TOGETHER BUT THEIR CLOSENESS IS PERSISTENTLY THREATENED BY THE MOTHER'S CLEAR PREFERENCE FOR OLIVIER SO EVEN THOUGH THE MOVIE IS ABOUT PARADISE LOST AND PARADISE REGAINED THE FAMILY REALLY ONLY BECOMES HAPPY AFTER OLIVIER DISAPPEARS AND THEN RETURNS IT TAKES THE TRAGEDY AND ITS RESOLUTION TO KNIT THEM ALL TOGETHER MS HOLLAND IS A GIFTED STORYTELLER BOTH AS A WRITER AND A DIRECTOR THOUGH HER PERCEPTIONS ARE VERY ADULT SHE HAS A CHILD'S ABILITY TO MIX FANTASY AND FACT PATHOS AND WIT SHE OPENLY INVOKES FAIRY TALES LIKE LITTLE RED RIDING HOOD OLIVIER IS DISPATCHED TO HIS GRANDMOTHER'S HOUSE WITH A BASKET OF GOODIES BUT HE NEVER ARRIVES NADINE ENCHANTS HER LITTLE BROTHER WITH SUPERNATURAL TRICKS AND THEY AREN'T FAKE THE MOVIE'S EMOTIONAL TURNS ARE ENHANCED BY ZBIGNIEW PREISNER'S MUSIC AND BERNARD ZITZERMANN'S WARMLY LIT PHOTOGRAPHY PERHAPS APPROPRIATELY OLIVIER OLIVIER IS LIKE WATCHING TWO MOVIES AT ONCE A CRAFTY SUSPENSE PICTURE AND AN EMOTIONAL FAMILY DRAMA ON BOTH SCREENS OLIVIER OLIVIER REVEALS AN EXQUISITE UNDERSTANDING OF THE MYTHS AND DREAMS THAT CAN HOLD FAMILIES TOGETHER OR PULL THEM APART MAD DOG AND GLORY ALSO SEEMS LIKE TWO MOVIES AT ONCE ONLY IN THIS CASE THE SPLIT COMES OFF LIKE A CASE OF SIAMESE TWINS ACTUALLY IT'S GIRLS ON ONE SIDE AND BOYS ON THE OTHER AND THE BOYS GET ALL THE BREAKS THE PICTURE IS ABOUT A MILD COP NAMED WAYNE IRONICALLY CALLED MAD DOG WHO BY CHANCE SAVES THE LIFE OF A GANGSTER NAMED FRANK TO THANK WAYNE FRANK SENDS HIM A GIRL CALLED GLORY A GIFT FOR A WEEK HER DUTIES ARE UNSPECIFIED BUT THEY DON'T HAVE TO BE JOHN MCNAUGHTON'S THOUGHTFUL DIRECTION AND RICHARD PRICE'S SCREENPLAY HAVE DONE WELL BY WAYNE AND FRANK AND SO HAVE ROBERT DE NIRO AND BILL MURRAY WHO PLAY THEM FRANK IS A WHIMSICAL GANGSTER A THUG WHO TALKS RESPECTFULLY ABOUT HIS THERAPIST AND WHO DOES STANDUP COMEDY WITH LOUSY GANGSTER JOKES AT A CLUB HE OWNS WAYNE IS A HOMICIDE COP WHO'D RATHER BE A PHOTOGRAPHER BUT OPENLY ADMITS I'M A REAL CIVIL SERVANT MR MURRAY'S WICKED GLINT MAKES PERFECT SENSE WHEN HE'S PLAYING A BAD GUY AND IT'S FUN TO WATCH MR DE NIRO PLAY A CALM PERSON WHO ONLY EXPLODES OCCASIONALLY THEY'VE BEEN GIVEN AMUSING SIDEKICKS AS WELL A BEEFY BODYGUARD MIKE STARR AND REDHEADED PARTNER DAVID CARUSO BUT THE POOR WOMEN UMA THURMAN LOOKS MISERABLE PLAYING GLORY THAT MAY BE PARTLY BECAUSE SHE SEEMS QUITE MISCAST TOO YOUNG TOO FRAGILE AS THE STREETWISE BARTENDER WHO RUNS ERRANDS FOR A GANGSTER OR SHE MAY SIMPLY RECOGNIZE WHAT AWFUL LINES SHE'S BEEN GIVEN TO SAY JUST FILLER REALLY UNTIL THE BIG MOMENT WHEN SHE TAKES HER CLOTHES OFF MAYBE IT'S SUPPOSED TO BE IRONIC WHEN SHE SAYS LIFE IS WHAT HAPPENS TO YOU WHILE YOU'RE WAITING FOR YOUR SHIP TO COME IN BUT I DON'T THINK SO ON THE OTHER HAND SHE FARES BETTER THAN KATHY BAKER WHO GETS HIT IN THE EYE BY ONE MAN AND LENDS MONEY TO ANOTHER SO HE CAN SPEND IT ON THE GIRL HE REALLY LOVES VIDEO TIP LOOKING AT MS BAKER'S BLACK EYE REMINDED ME OF STREET SMART ANOTHER MOVIE IN WHICH SHE GETS SMACKED ONSCREEN THE PICTURE DOESN'T LIVE UP TO ITS INTERESTING PREMISE A MAGAZINE WRITER MAKES UP A STORY ABOUT A PIMP AND DOES SUCH A GOOD JOB HE FINDS HIMSELF ENMESHED IN A REAL INVESTIGATION OF A REAL PIMP BUT THE MOVIE IS WORTH SEEING FOR MORGAN FREEMAN IN HIS FIRST TRULY BIG MOVIE ROLE PLAYING THE PIMP 9303040025 930304 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN UTILITIES EXPECT TO PASS ANY ENERGY TAX ON TO CONSUMERS BUT SOME SEE PROBLEMS ELECTRIC UTILITIES GRUMBLE THE PROPOSED TAX IS REGRESSIVE WON'T SPUR CONSERVATION AND ADDS TO THEIR BURDEN AS TAX COLLECTORS COMPANIES SUCH AS COMMONWEALTH EDISON IN CHICAGO POTOMAC ELECTRIC POWER IN DC DETROIT EDISON AND BOSTON EDISON FIGURE PROFITS WON'T BE HURT SINCE COSTS WILL BE TRUNDLED ON TO CONSUMERS BUT A SPOKESMAN FOR NEW JERSEY'S GENERAL PUBLIC UTILITIES WARNS I LEARNED A LONG TIME AGO NOT TO COUNT ON ANYTHING GOLDMAN SACHS ANALYST ERNEST LIU ADDS A PASSTHROUGH COULD CAUSE CASHFLOW QUIRKS THE TAX MAY BE ADDED TO BILLS VIA A MONTHLY FUELADJUSTMENT RIDER OR IT MAY BE INCLUDED IN PERIODIC BASERATE RISES EITHER WAY SOMETHING CAN GO WRONG SAYS MR LIU FOR INSTANCE A UTILITY PAYING HIGHER NATURALGAS PRICES MONTHLY MAY HAVE TO WAIT AWHILE TO RECOUP OR TRY TO DEFER THE COSTS ON THE BALANCE SHEET UNTIL THE BASERATE RISES TAXES OFTEN RANK AS THE THIRD BIGGEST ITEM ON CONSUMERS' BILLS BUT PEOPLE SELDOM NOTICE SAYS POTOMAC IN DC THE ART OF DEALING IS PRACTICED ON ART DEALERS THIS SEASON ATTENDANCE AT NEW YORK'S ART SHOW JUMPS BUT SO DOES BARGAINING BY COLLECTORS THE ANNUAL EXHIBIT DREW 13456 PEOPLE UP 23 FROM LAST YEAR BUT WELL BELOW THE 1980S PEAK SALES IMPROVED TOO BUT DEALERS SAY COLLECTORS ARE TAKING LONGER THAN USUAL TO PAY ASKING FAVORS SUCH AS A CHANCE TO TEST DRIVE ART AT HOME AND SOMETIMES BACKING OUT OF DEALS ALTOGETHER DEALER DAVID TUNICK SAYS A BUYER ASKED TO TRY OUT A 300000 MATISSE IN A CHILD'S NURSERY STILL ART DEALERS ARE ENCOURAGED RICHARD GRAY OF CHICAGO CREDITS PENTUP DEMAND AMONG BUYERS WHO BELIEVE PRICES WON'T FALL ANY MORE HE MADE SEVEN SIXFIGURE SALES OF WORKS BY KIEFER KLEE AND OTHERS TWO GIACOMETTIS FETCHED MORE THAN 800000 HURRYUP GARDENS GROW IN POPULARITY AMONG TIMEPRESSED TILLERS W ATLEE BURPEE & CO BRANCHES OUT INTO BEDDING PLANTS SKIP THE SEEDS MAILED TO YOUR DOOR THE ALSO VENERABLE GEORGE W PARK SEED CO STARTS A NEW UNIT PARK PLANTS INC TO MARKET SEEDLINGS THROUGH BIG OUTLETS LIKE HOME DEPOT AND SUNSET PUBLISHING THIS SPRING TESTS SUNSET GARDEN GUIDE A NEW MAGAZINE EMPHASIZING ONEDAY WONDER PROJECTS GARDENING IS NOW STRONG AMONG YOUNGER PEOPLE IN THEIR 30S AND 40S WHO LIKE THINGS QUICK AND EASY SAYS WILLIAM MARKEN SUNSET EDITOR BEDDING PLANTS SOLD AT LOCAL NURSERIES HAVE BEEN POPULAR FOR YEARS ONLY ABOUT 4 OF GARDENERS ARE DEDICATED TO GROWING FROM SEED SAYS GEORGE BALL JR BURPEE PRESIDENT PARK SEED SAYS ITS VENTURE BENEFITS FROM NEW TECHNOLOGY THAT CUTS COSTLY HANDLING TIME BURPEE AVOIDS FROSTS BY KEYING DELIVERY TO ZIP CODES THE FIRMS DIFFER ON MARKETING BUT BOTH STRESS STRONG ROOTS NOT BLOOMS AS VITAL FOR SEEDLINGS BURPEE FIGURES THE RETURN ON VEGETABLES IS ABOUT 700 10 WORTH OF SEED AND SUPPLIES YIELDS 75 TO 80 IN VEGETABLES THIS UNEASY LEGALESE WAS SPOTTED IN AMERICAN EXPRESS'S PRELIMINARY PROXY PASSAGE ON ITS LONGTERM INCENTIVE PLAN THE MASCULINE PRONOUN INCLUDES THE FEMININE AND THE SINGULAR INCLUDES THE PLURAL WHEREVER APPROPRIATE ROUGH TRANSLATION WE HAVE WOMEN EXECUTIVES AND MORE THAN ONE PERSON IS COVERED BY THIS PROGRAM KRAMER SAYS HI OR HAPPY BIRTHDAY OR GET WELL IN A NEW SERIES OF GREETING CARDS FEATURING CAST MEMBERS AND BITS OF DIALOGUE FROM THE NBC SERIES SEINFELD CASTLE ROCK ENTERTAINMENT HAS LICENSED ANDREWS & MCMEEL KANSAS CITY MO TO PRODUCE AND DISTRIBUTE THE CARDS COMPUTER CLOCK WATCHERS ANXIOUSLY AWAIT THE MILLENNIUM PESSIMISTS WARN THAT ON JAN 1 2000 THOUSANDS OF COMPUTERS MAY GRIND TO A HALT WHY TO SAVE SPACE WHEN RECORDING DATES MANY COMPUTER PROGRAMS ALLOW ONLY TWO DIGITS FOR YEARS AS IN 93 FOR 1993 COMPUTERS USING SUCH DATES TO DETERMINE A PERSON'S AGE OR A PASTDUE BILL FOR INSTANCE MAY BE STYMIED BY THE 00 IN 2000 MAINFRAMES WITH OLD RIGID PROGRAMS ARE MOST SUSCEPTIBLE WARNS THE RECENT BOOK ACCIDENTAL EMPIRES OTHERS SAY MAINFRAMES AREN'T ALONE IN THEIR VULNERABILITY LARRY BACON WHO OVERSEES COMPUTERS FOR TRAVELERS INSURANCE SAYS 2000 MAY MARK TROUBLE FOR MANY FIRMS WITH VAST RECORDS BASED ON THE TWODIGIT SYSTEM IF YOU JUST IGNORE IT AND GO HOME ON DEC 31 1999 YOU COULD WAKE UP WITH SOME REAL PROBLEMS SAYS MR BACON BELLSOUTH CORP'S LM BERRY & CO UNIT EXPECTS MUCH ADVANCE BUSY WORK BUT NO DISASTER AND AT A BRIEFING THIS WEEK IN SAN FRANCISCO INTERNATIONAL BUSINESS MACHINES CORP SAYS IT HAS SOLUTIONS BILL GOODWIN NEW YORK LAUNCHES A NEWSLETTER FOR TECHNICIANS TACKLING THE TASK ITS TITLE TICK TICK TICK BRIEFS THE DORAL ARROWWOOD IN RYE BROOK NY OFFERS A 25 ZERO CALORIE LUNCH A WORKOUT IN THE RESORT'S GYM EARNS A VOUCHER FOR A LUNCH THAT EQUALS THE NUMBER OF CALORIES BURNED THE TUBE COUNCIL OF NORTH AMERICA AWARDED THE 1992 METAL TUBE OF THE YEAR PRIZE TO BEARD BUSTER BARBASOL BRUSHLESS SHAVE CREAM 9303040024 930304 INTERNATIONAL AIRBUS SUBSIDIES ARE INVISIBLE TO RADAR CONSORTIUM BUILT TO DEFLECT CRITICISM LIKE CLINTON'S BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL OBERPFAFFENHOFEN GERMANY WHAT A TANGLED WEB AIRBUS INDUSTRIE WEAVES IN A SMALL FACTORY IN THIS VILLAGE 19 MILES FROM MUNICH DORNIER GMBH A UNIT OF AIRBUS PARTNER DEUTSCHE AEROSPACE AG MAKES PRESSURE BULKHEADS FOR THE WIDEBODY AIRBUS JETLINERS IT ALSO MAKES WING FLAPS THE REAR FUSELAGE AND A SMALL SECTION OF THE FLOOR STRUCTURE FOR ONE OF THE EUROPEAN AIRCRAFT CONSORTIUM'S PLANES AT THE SAME SITE DORNIER IS ALSO COMPLETING TESTS ON A NEW TURBOPROP PLANE FOR ITSELF AND IS WINDING DOWN ASSEMBLY OF ANOTHER OLDER TURBOPROP PIECEMEAL CONSTRUCTION OF AIRBUS PLANES LIKE THE NEW A321 ROLLED OUT YESTERDAY IN HAMBURG GOES ON AT SITES THROUGHOUT EUROPE FREIGHT DOORS IN DONAUWOERTH GERMANY TAIL PARTS IN SEVILLE SPAIN FORWARD FUSELAGE PARTS IN ST MAZAIRE FRANCE AND NAPLES ITALY AND WING ASSEMBLY IN CHESTER ENGLAND TO NAME ONLY A FEW IN MANY CASES WORKERS DIVIDE THEIR TIME BETWEEN AIRBUS JOBS AND TASKS FOR THE COMPANY THAT EMPLOYS THEM AIRBUS IS AN INTERNATIONAL ALLIANCE THAT OFTEN FINDS ITSELF AT ODDS WITH ITS GLOBAL COMPETITORS BUT BECAUSE OF THE TOULOUSEBASED CONSORTIUM'S SPECIAL STATUS UNDER FRENCH LAW ITS CRYPTIC STRUCTURE ALSO ALLOWS THE FOUR PARTNERS TO BOOST THEIR REVENUES AND EMPLOYMENT LEVELS WHILE CONCEALING THE EXTENT TO WHICH THEY BENEFIT FROM STATE SUBSIDIES FOR AIRBUS WORK WHICH THEY HIDE BY NOT LISTING AIRBUS OPERATIONS SEPARATELY IN THEIR PROFIT AND LOSS STATEMENTS AS A RESULT WHILE THE PARTNERS MAY BE UNDER PRESSURE FROM COMPETITORS AND FOREIGN GOVERNMENTS TO PHYSICALLY AND LEGALLY SEPARATE THEIR AIRBUS ACTIVITIES FROM THEIR OTHER WORK THE WORLD'S NO 2 AIRCRAFT MAKER IS LIKELY TO JEALOUSLY GUARD ITS SPLINTERED SHROUDED STRUCTURE BUT WITH GLOBAL AVIATION IN ITS DEEPEST DOWNTURN SINCE WORLD WAR II ATTACKS ON AIRBUS'S PATCHWORK LEGAL FINANCIAL AND MANAGEMENT STRUCTURE ARE LIKELY TO INCREASE PRESIDENT CLINTON HAS TURNED UP THE HEAT SINCE HIS ELECTION VOWING TO SEEK TOUGH NEW DISCIPLINE AGAINST AIRBUS AND TO CHANGE THE RULES OF THE GAME A SENIOR EUROPEAN COMMUNITY TRADE OFFICIAL SAYS THE US HAS ASSURED HIM THAT SUCH STATEMENTS SIGNAL NOTHING MORE THAN A DETERMINATION TO ENFORCE A USEC AGREEMENT SIGNED IN JULY ON AIRCRAFT SUBSIDIES LAST WEEK A PAIR OF US SENATORS PROMINENT ON TRADE ISSUES CALLED FOR A FORMAL INVESTIGATION INTO GOVERNMENT AID TO AIRBUS ARCHRIVAL BOEING CO OF SEATTLE THE NO 1 WORLD AIRCRAFT MAKER ALSO IS PUSHING WASHINGTON TO LOOK INTO THE ISSUE MEANWHILE A US TRADE COMMISSION OFFICIAL HAS SPENT THE PAST WEEK TALKING TO COMPANY AND GOVERNMENT OFFICIALS IN BRITAIN GERMANY FRANCE AND BELGIUM ABOUT AIRBUS SUBSIDIES FACED WITH THESE CHALLENGES THE EUROPEANS ARE DIGGING IN AIRBUS OFFICIALS REFUSED TO BE INTERVIEWED FOR THIS ARTICLE BUT TALKS WITH LEADING OFFICIALS AT AIRBUS'S TWO MAJOR PARTNERS REVEAL A STEELY RESOLVE SEVERAL YEARS AGO AIRBUS OFFICIALS TALKED ABOUT TRANSFORMING THE CONSORTIUM INTO A PRIVATE COMPANY AND SAID THE MATTER WAS UNDER STUDY SUCH A MOVE WOULD GO A LONG WAY TOWARD ENDING THE ARGUMENTS OVER SUBSIDIES BY BRINGING AIRBUS'S FINANCES INTO THE OPEN BUT THE PARTNERS NOW DISMISS THE IDEA TO CHANGE THE LEGAL STATUS OF AIRBUS WOULD BE A HUGE PROBLEM SAYS AEROSPATIALE CHAIRMAN LOUIS GALLOIS WHAT TYPE OF COMPANY A FRENCH COMPANY A GERMAN COMPANY A BRITISH COMPANY WE HAVE NO EUROPEAN COMPANY AEROSPATIALE OF FRANCE OWNS 379 OF AIRBUS DEUTSCHE AEROSPACE AG A UNIT OF DAIMLERBENZ AG ALSO OWNS 379 BRITISH AEROSPACE PLC OWNS 20 AND CONSTRUCCIONES AERONAUTICAS SA HOLDS 42 OFFICIALS OF THE MEMBER COMPANIES TICK OFF OTHER REASONS TO POSTPONE TAKING THE CONSORTIUM OUT FROM UNDER GOVERNMENT'S WING BUT THE MOST IMPORTANT REASON FOR STICKING WITH THE STATUS QUO MAY BE THAT THE AIRBUS STRUCTURE SUITS ITS MEMBERS LONG TERM PRIVATIZING IS SURELY THE RIGHT THING SAYS JUERGEN SCHREMPP CHAIRMAN OF DEUTSCHE AEROSPACE BUT AT THE MOMENT WE SHOULD LET THE SYSTEM RUN BECAUSE IT WORKS VERY WELL AIRBUS IS SET UP AS ONE OF FRANCE'S GROUPEMENTS D'INTERET ECONOMIQUE ORIGINALLY USED BY WINE GROWERS THIS STRUCTURE HAS BECOME A POPULAR WAY FOR FRENCH COMPANIES TO WORK TOGETHER WITHOUT POOLING ASSETS OR DISCLOSING FINANCIAL SECRETS WHEN AIRBUS WAS LAUNCHED IN 1970 SKEPTICS SAID THE IDEA OF PATCHING TOGETHER PLANES IN A HAPHAZARD FASHION AND WITH A LEGAL STRUCTURE TESTED BY VINEYARDS WOULDN'T WORK BUT THE CONSORTIUM IS NOW FIRMLY ESTABLISHED WHILE LONGTIME BUILDERS SUCH AS MCDONNELL DOUGLAS CORP STRUGGLE TO STAY IN THE BUSINESS THE ARRANGEMENT GIVES ITS MEMBER COMPANIES A STREAM OF INCOME ADDS TO THEIR EMPLOYMENT AND BOOSTS THEIR PROFILES AT HOME MEANWHILE AIRBUS INDUSTRIE RATHER THAN THE INDIVIDUAL PARTNERS GETS ALL THE UNFAVORABLE ATTENTION CONCERNING THE GOVERNMENT SUBSIDIES PEOPLE DON'T UNDERSTAND THIS SOMETIMES BUT AIRBUS INDUSTRIE IS A MARKETING ORGANIZATION SAYS PETE DEIGHTON AEROSPACE ANALYST FOR SMITH NEW COURT SECURITIES LTD IN LONDON AIRBUS SIMPLY SELLS THE PLANES AND HANDS THE MONEY OVER TO THE PARTNERS INDEED THERE ARE NO AIRBUS ANNUAL REPORTS OR MIDYEAR ACCOUNTS THE CONSORTIUM DOESN'T EVEN REVEAL ITS ANNUAL PROFIT OR LOSS THOUGH IT SAYS IT TURNED A PROFIT IN 1992 INDUSTRY ANALYSTS ESTIMATE AIRBUS'S OPERATING PROFIT LAST YEAR AT ABOUT 275 MILLION THAT WORKS OUT TO BE ABOUT HALF OF BOEING'S PROFIT MARGIN WITH SUCH A THIN PROFIT MARGIN COMPETITORS ASK HOW AIRBUS CAN OFFER CUSHY FINANCIAL INCENTIVES TO AIRCRAFT BUYERS SUCH AS THE RIGHT TO RETURN A PLANE WITHOUT GOVERNMENT SUPPORT ALL THIS LEAVES INTERESTED OBSERVERS SIFTING FOR INSIGHTS IN THE CONSOLIDATED INFORMATION OF THE PARTNER COMPANIES BUT TO DATE NONE OF THE PARTNERS SEPARATE AIRBUSRELATED FINANCIAL INFORMATION FROM THE REST OF THEIR ACTIVITIES ADD THE FACT THAT TWO OF THE PARTNERS AEROSPATIALE AND CONSTRUCCIONES AERONAUTICAS ARE STATEOWNED AND THE RESULT IS STRONG SUSPICION ABOUT SUBSIDIES OR SOFT GOVERNMENT LOANS MR CLINTON LIKE MANY OTHERS CITES A 1990 STUDY COMMISSIONED BY THE US DEPARTMENT OF COMMERCE THAT SAYS THE CONSORTIUM'S PARTNERS HAVE RECEIVED ABOUT 26 BILLION IN GOVERNMENT AID EUROPEANS RESPOND BY CITING A SURVEY CONDUCTED IN 1991 BY US LAW FIRM ARNOLD & PORTER SHOWING THAT US AIRCRAFT MAKERS RECEIVED AS MUCH AS 41 BILLION IN SOCALLED INDIRECT SUBSIDIES THAT REFERS TO BENEFITS GAINED FROM MILITARY AND SPACE CONTRACTS THE ISSUE WAS APPARENTLY RESOLVED IN JULY WHEN THE US AND THE EC SIGNED AN AGREEMENT LIMITING FUTURE DEVELOPMENT SUBSIDIES DIRECT AND INDIRECT BUT SINCE THEN A NEW ADMINISTRATION HAS COME TO WASHINGTON AND THE AIRCRAFT INDUSTRY HAS HIT HARD TIMES THE AIRBUS PARTNERS FREELY CONCEDE THEY HAVE RECEIVED GOVERNMENT AID IN DEVELOPING PLANES IN THE PAST BUT THEY SAY THEY ARE PAYING IT BACK ALBEIT AT A PACE DICTATED BY SALES RATHER THAN A SCHEDULE CURRENT PLANES THEY SAY SUCH AS THE A321 ARE BEING DEVELOPED WITHOUT GOVERNMENT HELP FOR THAT AIRCRAFT AIRBUS TAPPED THE BOND MARKETS WITH A 150 BILLION LIRE 958 MILLION ISSUE IN 1991 IT WOULD DO SOMETHING SIMILAR IF IT LAUNCHES A 124SEAT A319 MODEL AIRBUS OFFICIALS SAY WE ARE IN FULL AGREEMENT WITH THE JULY AGREEMENT MR GALLOIS SAYS WE ARE REIMBURSING THE FRENCH GOVERNMENT FAR MORE THAN WE RECEIVE 9303040023 930304 WHAT'S NEWS BUSINESS AND FINANCE REVISED ESTIMATES OF CLINTON'S DEFICITREDUCTION PLAN ARE DRIVING DEMOCRATS TO FIND MORE SPENDING CUTS AND COULD THREATEN SUPPORT FOR THE ADMINISTRATION'S PUBLIC INVESTMENT INTIATIVES THE NEW FIGURES SUGGEST PROPOSED SPENDING CUTS AND HIGHER TAXES IN THE PLAN WILL FALL MORE THAN 60 BILLION SHORT OF EXPECTED SAVINGS AND RECEIPTS OVER THE NEXT FIVE YEARS CAR AND TRUCK SALES SLUMPED IN LATE FEBRUARY APPARENTLY REFLECTING UNCERTAINTY OVER CLINTON'S ECONOMIC PLAN BUT FORD AND CHRYSLER CONTINUED TO PICK UP MARKET SHARE IN FEBRUARY FROM JAPANESE AUTO MAKERS WHOSE SEEMINGLY INEVITABLE GAINS AT THE EXPENSE OF US INDUSTRY MAY BE OVER MAZDA AND FORD DECIDED AGAINST BUILDING CARS TOGETHER IN EUROPE ANOTHER SETBACK TO MAZDA'S EXPANSION PLANS MAZDA IS 25 OWNED BY FORD GM SAID 16500 HOURLY WORKERS MORE THAN DOUBLE THE ORIGINAL ESTIMATE TOOK EARLY RETIREMENT THE MOVE WILL SAVE THE AUTO MAKER ABOUT 1 BILLION IN ANNUAL EMPLOYMENT COSTS BOND PRICES SURGED WITH THE TREASURY'S 30YEAR ISSUE RISING 3/4 POINT TO YIELD 678 STOCKS POSTED MODERATE GAINS THE DOW JONES INDUSTRIALS ROSE 351 TO 340404 NASDAQ ISSUES CLIMBED SHARPLY THE DOLLAR WAS MIXED THE SUPREME COURT RULED THAT ACCOUNTANTS AND OTHER OUTSIDE PROFESSIONALS WHO DON'T HELP RUN FAILED BUSINESSES CAN'T BE NAMED IN CIVIL RACKETEERING SUITS UNDER THE RICO STATUTE BOEING IS WORRIED THAT US TRADE MOVES COULD CRIPPLE THE FIRM'S JETLINER BUSINESS COMPANY EXECUTIVES ESPECIALLY CITE THE THREAT POSED BY ANY US FAILURE TO RENEW MOST FAVORED NATION TRADING STATUS FOR CHINA ONE OF THE FEW HOT GROWTH MARKETS LEFT WISCONSIN'S PUBLIC PENSION FUND IS LEADING A MOVE TO UNSEAT FOUR PARAMOUNT COMMUNICATIONS DIRECTORS DUE TO THE COMPANY'S LAGGING STOCK PRICE AND HIGH EXECUTIVE COMPENSATION CHIRON WILL SOON ASK FEDERAL REGULATORS TO APPROVE WHAT COULD BE THE FIRST TREATMENT AIMED AT THE CAUSE OF MULTIPLE SCLEROSIS CHIRON SHARES HAVE RISEN SHARPLY IN RECENT DAYS LATE PAYMENTS ON HOME MORTGAGES FELL IN THE FOURTH QUARTER TO THEIR LOWEST LEVEL IN 18 YEARS REFLECTING A STRONGER HOUSING MARKET AND A BIG RISE IN MORTGAGE REFINANCING OVER THE PAST YEAR GENERAL CINEMA'S NET INCOME TUMBLED IN ITS FIRST QUARTER DUE TO A HUGE ONETIME GAIN A YEAR EARLIER BUT THE COMPANY POSTED A SURPRISING 18 JUMP IN EARNINGS BEFORE SPECIAL ITEMS PRUDENTIAL SECURITIES PLANS TO SET ASIDE AS MUCH AS 100 MILLION MORE IN RESERVES THIS YEAR FOR ITS LIMITEDPARTNERSHIP BUSINESS PEOPLE FAMILIAR WITH THE FIRM SAID THAT WOULD BRING TOTAL RESERVES TO NEARLY 500 MILLION COMPAQ COMPUTER PLANS TO ANNOUNCE NEXT WEEK A NUMBER OF NEW NOTEBOOK AND DESKTOP COMPUTERS AS WELL AS ITS MOST EXTENSIVE ROUND OF PRICE CUTTING SO FAR THIS YEAR KUWAITI OILPRODUCTION FIGURES SUPPORT ITS RECENT CLAIMS THAT ITS OUTPUT WAS RISING MUCH FASTER THAN GENERALLY ESTIMATED NEW STATISTICS SHOW THAT THE EMIRATE PRODUCED JUST OVER TWO MILLION BARRELS A DAY IN FEBRUARY FRANCE'S CIE DE SUEZ HAD A 1992 LOSS OF AS MUCH AS 341 MILLION MUCH LARGER THAN ANALYSTS HAD EXPECTED BONDS LEHMAN BROTHERS TREASURY INDEX 506754 UP 3389 COMMODITIES OIL 2048 A BARREL UP ONE CENT DOW JONES FUTURES INDEX 12603 UP 083 SPOT INDEX 12555 UP 025 DOLLAR 11665 OFF 095 16458 UP 00063 9303040022 930304 BUSINESS BRIEF RELIANCE ELECTRIC CO FIRM SAYS IT MAY BE HARD TO MEET '93 PROFIT ESTIMATE RELIANCE ELECTRIC CO EXPECTS HIGHER EARNINGS IN 1993 BUT A SLOWERTHANEXPECTED FIRST QUARTER MAY MAKE IT DIFFICULT TO EQUAL ANALYST ESTIMATES OF 140 A SHARE COMPANY OFFICIALS SAID RELIANCE HASN'T EXPERIENCED THE ACCELERATION IN ORDERS EXPECTED ONLY A FEW MONTHS AGO PARTICULARLY FOR ENGINEERED PRODUCTS USED IN SOPHISTICATED INDUSTRIAL SYSTEMS SAID JOHN C MORLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MORLEY SAID UNCERTAINTY ABOUT THE TAX INCREASES PROPOSED BY THE CLINTON ADMINISTRATION APPEAR TO BE SLOWING THE ECONOMY IN THE FIRST QUARTER ALSO PRICING IS VERY COMPETITIVE ON MOTORS AND OTHER OFFTHESHELF INDUSTRIAL PRODUCTS MR MORLEY SAID AND PROFIT MARGINS ON SOME OF THE MORE SPECIALIZED PRODUCTS SHIPPED IN THE CURRENT QUARTER WILL BE SLIM BECAUSE OF INTENSE PRICE COMPETITION WHEN THE ORDERS WERE RECEIVED LAST YEAR AS A RESULT HE SAID FIRSTQUARTER PROFIT MAY NOT EQUAL THE 25 CENTS TO 30 CENTS A SHARE ANALYSTS HAVE BEEN PROJECTING MR MORLEY DECLINED TO MAKE A PROFIT FORECAST FOR 1993 RELIANCE EARNED THREE CENTS A SHARE IN THE 1992 FIRST QUARTER 9303040021 930304 MARKETING & MEDIA CABLETV CONSORTIUM SIGNS AGREEMENTS TO BUY NINE SYSTEMS DENVER A CONSORTIUM OF CABLE COMPANIES SIGNED AGREEMENTS TO ACQUIRE NINE CABLE SYSTEMS IN SEVERAL STATES FOR MORE THAN 300 MILLION THE VENTURE INVOLVING TELECOMMUNICATIONS INC JONES INTERCABLE INC CENTURY COMMUNICATIONS CORP CITIZENS UTILITIES CO BRESNAN COMMUNICATIONS AND AN AFFILIATE OF INTERMEDIA PARTNERS WILL PURCHASE THE SYSTEMS WHICH SERVE ABOUT 175000 CUSTOMERS TERMS WEREN'T DISCLOSED BUT THE TRANSACTION IS BELIEVED TO BE VALUED AT MORE THAN 300 MILLION MANY OF THE SYSTEMS WILL NEED TO BE UPGRADED TO INCREASE AVAILABLE CHANNELS FROM 36 TO 54 OR MORE AND SOME WILL NEED NEW CABLE EITHER COAXIAL OR FIBER OPTIC ACCORDING TO A PERSON FAMILIAR WITH THE TRANSACTION IN A STATEMENT DANIELS & ASSOCIATES THE BROKER FOR THE TRANSACTION SAID SEVEN OF THE SYSTEMS WERE OWNED BY THREE AMERICAN CABLE TELEVISION PUBLIC LIMITED PARTNERSHIPS KNOWN AS ACT 2 ACT 3 AND ACT 4 TWO OTHERS WERE HELD IN A PRIVATE LIMITED PARTNERSHIP FOOTHILLS CABLEVISION LTD THE SYSTEMS BEING SOLD BY ACT 2 ACT 3 AND FOOTHILLS REPRESENT THE LIQUIDATION OF THOSE PARTNERSHIPS ALL THE PARTNERSHIPS WERE FORMED IN THE 1980S BY INTEGRATED RESOURCES INC A REAL ESTATE MANAGER AS INVESTMENTS FOR INDIVIDUALS AND QUALIFIED PLANS ACCORDING TO DANIELS & ASSOCIATES INTEGRATED RESOURCES IS CURRENTLY SEEKING A CHAPTER 11 REORGANIZATION IN US BANKRUPTCY COURT IN NEW YORK 9303040020 930304 WHO'S NEWS HYPERION CAPITAL MANAGEMENT INC HYPERION CAPITAL MANAGEMENT INC NEW YORK CLIFFORD E LAI 39 YEARS OLD JOINED THIS FIXEDINCOME MONEY MANAGEMENT FIRM AS ITS SENIOR INVESTMENT STRATEGIST AND SECOND MANAGING DIRECTOR MR LAI WHO WAS MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER AT FIRST BOSTON ASSET MANAGEMENT WILL REPORT TO KENNETH C WEISS HYPERION'S PRESIDENT AND CHIEF INVESTMENT OFFICER HYPERION FOUNDED BY FORMER SALOMON BROTHERS INC VICE CHAIRMAN LEWIS RANIERI MANAGES 33 BILLION IN INVESTMENTS MOSTLY IN MORTGAGEBACKED SECURITIES 9303040019 930304 CREDIT MARKETS BOND RALLY PICKS UP STEAM AGAIN SPURRING ABOUT 2 BILLION OF ISSUANCE BY CITIES STATES BY THOMAS D LAURICELLA AND CANDACE CUMBERBATCH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AFTER TAKING A BREATHER TUESDAY THE BOND MARKET RESUMED ITS MARCH HIGHER YESTERDAY AS PRICES OF LONGTERM SECURITIES SOARED THE MARKET IS ON A MAGIC CARPET RIDE AND IT JUST DOESN'T SEEM TO WANT TO LAND A SENIOR BOND SALESMAN SAID YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 104 10/32 AS ITS YIELD DROPPED TO 678 FROM 683 ON TUESDAY UNTIL RECENTLY THE YIELD OF THE 30YEAR BOND HAD NEVER DROPPED BELOW 710 SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 THE 10YEAR NOTE ROSE MORE THAN 3/8 POINT TO 102 22/32 AS ITS YIELD DROPPED TO 587 THE LOWEST SINCE LATE 1971 AND DOWN FROM 593 ON TUESDAY AS RATES DROPPED CITIES AND STATES ACROSS AMERICA RUSHED TO ISSUE ABOUT 2 BILLION IN NEW MUNICIPAL BONDS INCLUDING A SINGLE OFFERING OF 11 BILLION BY THE SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY OF ORANGE COUNTY CALIF THE RALLY BEGAN IN OVERSEAS TRADING AND THE BUYING PERSISTED THROUGHOUT MOST OF US TRADING THE MARKET TRADED FIRM OVERNIGHT OPENED FIRM AND THEN CONTINUED TO RALLY SAID LAWRENCE LEUZZI A MANAGING DIRECTOR AT S G WARBURG & CO HELPING THE MARKET ALONG WAS CONTINUED BUYING OF SHORT AND INTERMEDIATE TREASURYS RELATED TO MUNICIPAL DEFEASANCE PROGRAMS AS PART OF A DEFEASANCE PROGRAM A STATE OR LOCAL GOVERNMENT ISSUES NEW DEBT AND USES THE PROCEEDS TO PAY OFF OUTSTANDING HIGHER INTEREST DEBT UNTIL THE OLDER SECURITIES ARE READY TO BE CALLED THE FUNDS FROM THE NEW ISSUANCE ARE INVESTED IN TREASURYS TRADERS TALKED OF OVER 2 BILLION IN NEW FUNDS BEING MOVED INTO TREASURYS FROM DEFEASANCE DEALS THAT GOT US GOING RIGHT OFF THE BAT SAID BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES INC AS BUYERS EMERGED YESTERDAY DEALERS FOUND THEMSELVES HAVING TO CLOSE OUT SHORTS POSITIONS WHERE THEY HAD SOLD SECURITIES IN ANTICIPATION OF BUYING THEM BACKLATER AT LOWER LEVELS AND POCKETING THE DIFFERENCE THE CURRENT ROUND OF DEFEASANCE BUYING IS ONLY ONE OF THE EVENTS THAT HAVE DRIVEN THE BOND MARKET HIGHER AND HIGHER THE MARKET IS BENEFITING FROM PEOPLE THAT HAVE TO INVEST MONEY SAID MR LEUZZI OF WARBURG THAT INCLUDES INVESTORS WHO HAVE HAD THEIR MORTGAGEBACKED SECURITIES CALLED AWAY FROM THEM AS HOMEOWNERS REFINANCE THEIR MORTGAGES HE SAID THAT THE DEFEASANCE OF MUNICIPAL DEBT AND THE HUGE FLOWS OF CASH INTO MUTUAL FUNDS HAVE ALSO CONTRIBUTED TO THE RECENT STRENGTH OF DEMAND FOR TREASURY SECURITIES IN ADDITION TREASURYS ARE STILL GETTING SUPPORT FROM THE VIEW THAT PRESIDENT CLINTON'S DEFICIT REDUCTION PLAN PRESENTS A WINWIN SITUATION FOR THE MARKET SAID MR LEUZZI IF THE PLAN WORKS IT WILL LOWER THE BUDGET DEFICIT AND REDUCE THE AMOUNT OF DEBT THE GOVERNMENT ISSUES BUT EVEN IF IT FAILS TO ATTAIN THAT GOAL ITS RELIANCE ON TAXES COULD THROW A WET BLANKET ON THE ECONOMIC RECOVERY HE SAID THERE'S SOMETHING FOR EVERYONE MR LEUZZI SAID INVESTORS OFTEN FEAR RAPID ECONOMIC GROWTH BECAUSE THEY BELIEVE IT MEANS INCREASED INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH FIXED RATES OF RETURNS LIKE BONDS WHILE SHORT AND INTERMEDIATE SECURITIES WERE LIFTED BY DEFEASANCERELATED BUYING THE BOND FOUND AN ALLY IN FEDERAL RESERVE GOVERNOR SUSAN PHILLIPS IN COMMENTS TO THE PRESS YESTERDAY MS PHILLIPS SAID THERE IS ROOM FOR LONGTERM INTEREST RATES TO FALL FURTHER SHE ADDED THAT FROM A HISTORICAL PERSPECTIVE GIVEN THE LOW INFLATION ENVIRONMENT IT IS POSSIBLE THE YIELD ON THE BOND COULD DROP ANOTHER 150 PERCENTAGE POINTS THAT CERTAINLY HELPED PUSH THE LONG END UP SAID STEPHEN MAHER AN EXECUTIVE VICE PRESIDENT AT NIKKO SECURITIES CO INTERNATIONAL INC THE SOLID DEMAND FOR TREASURYS WAS EVEN EVIDENT IN THE BILL SECTOR WHERE RATES FELL 002 TO 004 PERCENTAGE POINT SAID MR MAHER THERE'S A LOT OF MONEY IN THE SYSTEM AND IT HAS TO FIND A HOME SAID MR MAHER AND IT'S CHASING A FINITE SUPPLY THE ONLY ECONOMIC NEWS FOR THE MARKET YESTERDAY PROVED TO BE POSITIVE WITH LATEFEBRUARY CAR SALES POSTING A WEAKERTHANEXPECTED 54 MILLION UNIT ANNUAL RATE HOWEVER THERE WAS A CAUTIONARY FLAG RAISED BY SOME DEALERS FOR TREASURYS THROUGHOUT THE RALLY DEALERS WERE SAID TO BE FIGHTING THE MARKET EVERY INCH OF THE WAY REFUSING TO BELIEVE THAT PRICES SHOULD BE AS HIGH AS THEY ARE ACTING ON THAT BELIEF THEY SET SHORT POSITIONS EXPECTING THE MARKET TO BEGIN MOVING LOWER BUT EACH TIME TREASURYS LOOKED TO BE FALLING BACK NEW BUYERS HAVE EMERGED AT THE LOWER LEVELS FORCING DEALERS TO BUY SECURITIES AS THEY CLOSED OUT THEIR SHORTS THE NEXT MAJOR EVENT FOR THE MARKET REMAINS TOMORROW'S FEBRUARY EMPLOYMENT REPORT THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT CALLS FOR A MODERATE INCREASE IN NONFARM PAYROLLS OF 135000 IN JANUARY PAYROLLS GAINED 106000 HOPES FOR A REPORT SHOWING CONTINUING SLUGGISH CONDITIONS IN THE LABOR MARKET ARE BOLSTERING SENTIMENT SAID MR LEUZZI OF WARBURG THAT HE NOTED IS A SWITCH FROM RECENT MONTHS WHERE WEAK DATA WAS VIEWED AS POSSIBLY PROMPTING A LARGER STIMULUS PLAN FROM THE CLINTON ADMINISTRATION PREVIOUSLY WHEN WE GOT WEAK ECONOMIC DATA THE MARKET REACTED SOMEWHAT NEGATIVELY SAID MR LEUZZI BUT NOW EVERYONE HAS SEEN THE PLAN AND IS NOT FEARFUL THAT WEAK DATA MEAN A BIGGER STIMULUS PACKAGE THE LARGEST INTERDEALER BOND BROKER CANTOR FITZGERALD SECURITIES CORP YESTERDAY SAID IT HAD BEGUN CONDUCTING TESTS OF ITS US GOVERNMENT SECURITIES BROKERAGE SYSTEM BUT DECLINED TO SPECIFY WHEN IT WOULD RESUME REGULAR OPERATIONS CANTOR WHICH PROVIDES WIDELY WATCHED PRICING INFORMATION ON THE TREASURY MARKET SUSPENDED ITS SERVICE AFTER FRIDAY'S BOMB BLAST AT THE WORLD TRADE CENTER FORCED THE COMPANY TO EVACUATE ITS OFFICES MEANWHILE YESTERDAY THE TREASURY SOLD 1109 BILLION OF 48DAY CASH MANAGEMENT BILLS AT AN AVERAGE DISCOUNT RATE OF 297 HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED MARCH 5 AND MATURE APRIL 22 1993 MUNICIPAL BOND INVESTORS SNAPPED UP 2 BILLION OF FRESH SUPPLY YESTERDAY EVEN THOUGH SOME OFFERINGS WERE CLOUDED BY UNCERTAINTIES ACTIVELY TRADED TAXEXEMPT ISSUES GAINED AS MUCH AS 5/8 POINT CONTINUING TO RISE AMID FEARS ABOUT THE CLINTON ADMINISTRATION'S PROPOSAL TO RAISE PERSONAL INCOME TAXES THE UTAH INTERMOUNTAIN POWER AGENCY'S 550 SERIES A POWER SUPPLY REVENUE REFUNDING BONDS OF 2020 FINISHED 1/2 POINT HIGHER AT 97 1/4 TO YIELD 569 IN PRIMARY DEALINGS THE SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY OF ORANGE COUNTY CALIF SOLD 11 BILLION OF SENIORLIEN AND 106 MILLION OF JUNIORLIEN TOLL ROAD REVENUE BONDS THROUGH AN UNDERWRITING GROUP LED BY FIRST BOSTON CORP THE ISSUE IS THE SECONDLARGEST SO FAR THIS YEAR PROCEEDS WILL BE USED FOR THE PURCHASE OF PROPERTY DESIGN AND CONSTRUCTION OF 145 MILES OF LIMITEDACCESS TOLL ROADTHE FIRST PUBLIC TOLL ROAD BUILT IN CALIFORNIA CONSTRUCTION IS SCHEDULED TO BE COMPLETED BY MARCH 1997 INVESTORS APPARENTLY WEREN'T PUT OFF BY A WARNING ON THE OFFICIAL STATEMENT SAYING OWNERSHIP OF THE SENIORLIEN BONDS IS SUBJECT TO RISK POTENTIAL INVESTORS ARE ADVISED TO CAREFULLY READ 'RISK FACTORS' HEREIN RISKS INCLUDE THE CHANCE OF DELAYS IN ROAD CONSTRUCTION BECAUSE OF EXISTING AND POTENTIAL LITIGATION AND THE POSSIBILITY OF INCREASED CONSTRUCTION COSTS FITCH INVESTORS SERVICE INC HAS RATED THE SENIORLIEN BONDS TRIPLEB ITS LOWEST INVESTMENTGRADE RATING ULTIMATELY THE STORY WAS TOLD WELL ENOUGH TO REASSURE BUYERS THAT THE PROJECT IS FEASIBLE AND DOABLE SAID A SPOKESMAN FOR FIRST BOSTON THERE WAS PRIMARILY INSTITUTIONAL DEMAND FROM MARKET PARTICIPANTS INCLUDING BOND FUNDS AND INSURANCE COMPANIES HE SAID YESTERDAY AFTERNOON THE FIRST BOSTON GROUP LOWERED THE YIELD ON ONE PORTION OF THE SAN JOAQUIN OFFERING A SIGN OF STRONG DEMAND YIELDS ON 7657 MILLION OF THE SENIORLIEN CURRENTINTEREST BONDS WERE CUT BY 003 TO 007 PERCENTAGE POINT AMONG OTHER SENIORLIEN BONDS SOLD 1524 MILLION OF ZEROCOUPON BONDS WERE PRICED TO YIELD 680 BY 2000 TO 775 BY 2029 ZERO COUPON BONDS ARE SOLD AT A DEEP DISCOUNT FROM THEIR FACE VALUE AND PAY NO INTEREST BUT CAN BE REDEEMED AT FACE VALUE WHEN THEY REACH MATURITY INCLUDED IN THE DEAL WERE 150 MILLION OF CONVERTIBLE ZEROCOUPON BONDS WHICH HAVE A CONVERSION DATE OF JAN 1 2002 THOSE SECURITIES WERE PRICED TO YIELD 730 BY 2004 AND 770 BY 2015 THEY WILL BE ZEROCOUPON SECURITIES UNTIL THE CONVERSION DATE AND THEN THEY WILL BECOME FIXEDRATE BONDS THE NATION'S ELECTRIC UTILITIES CONTINUED THEIR CAMPAIGN TO TAKE ADVANTAGE OF HISTORICALLY LOW INTEREST RATES BY REFINANCING THEIR OUTSTANDING DEBT UTILITIES INCLUDING WISCONSIN ELECTRIC POWER CO A UNIT OF WISCONSIN ENERGY CORP AND FLORIDA POWER CORP WERE AMONG THE SESSION'S BORROWERS AND UNDERWRITERS SAY THERE IS AT LEAST 15 BILLION MORE UTILITY PAPER ON ITS WAY SOON INCLUDING BOSTON EDISON CO'S 650 MILLION FIVEPART OFFERING OF FIRST MORTGAGE BONDS FRIDAY FURTHER TRADERS SAID INVESTOR DEMAND FOR UTILITY PAPER IS ON THE RISE BECAUSE UTILITY BONDS HAVE BECOME CHEAPER WHILE INDUSTRIAL ISSUES TRADE AT EVERSTEEPER PREMIUMS IN SECONDARY ACTION CORPORATES CONTINUED TO TRACK HIGHER WITH TREASURYS FINISHING WITH GAINS RANGING FROM 1/8 TO 1/2 POINT JUNK BONDS ENDED 1/8 TO 1/2 POINT HIGHER IN MODERATE ACTIVITY UTILITY TREASURERS SAY TODAY'S LOWRATE ENVIRONMENT OFFERS ENERGY PRODUCERS AN UNBEATABLE CHANCE TO CUT BORROWING COSTS WHICH THEY SAY IS CRUCIAL TO SURVIVAL IN A MORECOMPETITIVE OPERATING ENVIRONMENT UTILITIES HAVE ISSUED 103 BILLION OF NEW DEBT FROM THE BEGINNING OF THE YEAR THROUGH LAST WEEK ACCORDING TO THOMSON FINANCIAL NETWORKS' CORPORATE BOND SERVICE THE TREASURY MARKET RALLY AND STRONG BIDDING FOR REAL ESTATE MORTGAGE INVESTMENT CONDUIT COLLATERAL LIFTED MORTGAGE SECURITIES PRICES BY AS MUCH AS 18/32 BUT WHILE MOST ISSUES FINISHED AROUND THE DAY'S PEAK PRICES TRADERS SAID THE PERSISTENT BOND YIELD DROP IS KEEPING PREPAYMENT FEARS ALIVE AND FOSTERING MORE SWITCHING OUT OF SOME MORTGAGE SECURITIES INTO TREASURYS IN SECONDARY TRADING OF 7 ISSUES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 18/32 HIGHER AT 102 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 17/32 HIGHER AT 101 17/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 17/32 HIGHER AT 101 11/32 ONE CATALYST FOR THE MORTGAGE MARKET'S RISE WAS A FLOOD OF NEW REMICS FIVE NEW DEALS AND THREE INCREASES TO OUTSTANDING DEALS WERE ANNOUNCED TOTALING 27 BILLION UNDERWRITERS HAVE BEEN PURCHASING 8 GINNIE MAES 75 AND 8 FREDDIE MAC GOLD SECURITIES 7 FANNIE MAES AND 15YEAR 7 FANNIE MAES AS COLLATERAL UNDERPINNING THE PRICES OF THOSE SECURITIES 9303040018 930304 FINANCING BUSINESS ADELPHIA COMMUNICATIONS CORP ADELPHIA COMMUNICATIONS CORP COUDERSPORT PA SAID IT EXPECTS TO FILE A REGISTRATION STATEMENT THIS MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF ABOUT 85 MILLION CLASS A COMMON SHARES AT A PRICE OF ABOUT 18 A SHARE PROCEEDS OF THE OFFERING ARE TO BE USED TO REDEEM THE COMPANY'S 13 SENIOR SUBORDINATED NOTES DUE 1996 AND FOR GENERAL CORPORATE PURPOSES THE CABLETELEVISION OPERATOR SAID IT EXPECTS FAMILY MEMBERS OF JOHN J RIGAS THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL ENTER INTO AN AGREEMENT TO BUY PART OF THE SHARES OFFERED 9303040016 930304 JACOBS ENGINEERING CONTRACT PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT WAS AWARDED A CONTRACT FROM SYNTEX PHARMACEUTICALS INTERNATIONAL LTD TO EXPAND A FACILITY IN FREEPORT BAHAMAS AMONG OTHER THINGS TERMS WEREN'T DISCLOSED SYNTEX PHARMACEUTICALS IS A UNIT OF SYNTEX CORP SEPARATELY JACOBS SAID ITS ROBERT E MCKEE INC CONSTRUCTION SUBSIDIARY WAS SELECTED AS A WESTERN REGION ONCALL CONTRACTOR TO PROVIDE CONSTRUCTION SERVICES FOR INTERNATIONAL BUSINESS MACHINES CORP IN CALIFORNIA AND ADJOINING STATES 9303040015 930304 US HOME FILES PLAN OF REORGANIZATION POSTS 4THPERIOD LOSS NEW YORK US HOME CORP FILED A REORGANIZATION PLAN IN FEDERAL BANKRUPTCY COURT HERE OFFERING TO ISSUE 165 MILLION IN NEW DEBT PLUS NEW COMMON AND PREFERRED STOCK TO SETTLE 297 MILLION IN UNSECURED CLAIMS US HOME A HOME BUILDER BASED IN HOUSTON SAID A COURTAPPOINTED COMMITTEE OF UNSECURED CREDITORS HASN'T AGREED ON ALL ISSUES BUT THE COMPANY BELIEVES NEGOTIATIONS HAVE ADVANCED FAR ENOUGH THAT A CONSENSUAL PLAN WILL BE ACHIEVED ADDITIONALLY THE HOME BUILDER REPORTED A FOURTHQUARTER LOSS OF 364 MILLION OR 80 CENTS A SHARE AFTER A REORGANIZATION CHARGE OF 449 MILLION THAT COMPARED WITH YEAREARLIER NET INCOME OF 85000 OR NEGLIGIBLE PERSHARE PROFIT AFTER A REORGANIZATION CHARGE OF 16 MILLION REVENUE FOR THE PERIOD ROSE 42 TO 1857 MILLION FROM 131 MILLION A YEAR EARLIER THE REORGANIZATION PLAN CALLS FOR UNSECURED CREDITORS TO RECEIVE ABOUT FIVE MILLION NEW COMMON SHARES AND 29 MILLION SHARES OF NEW CONVERTIBLE PREFERRED STOCK UNSECURED LENDERS ARE DOMINATED BY MEMBERS OF A BANK GROUP INCLUDING UNITS OF CITICORP AND CHEMICAL BANKING CORP HOLDERS OF EXISTING COMMON STOCK WILL RECEIVE 21 MILLION SHARES OF NEW COMMON FOR THEIR 453 MILLION SHARES OUTSTANDING THEY WILL RECEIVE ANOTHER 1430000 SHARES OF NEW COMMON IF THE COMPANY SUCCESSFULLY COMPLETES A PLANNED PUBLIC OFFERING TO REPAY 100 MILLION OF THE NEW DEBT IF THE PUBLIC OFFERING ISN'T COMPLETED BY THE TIME THE COMPANY EMERGES FROM BANKRUPTCYLAW PROCEEDINGS EXPECTED SOMETIME IN THE SECOND QUARTER THE SHAREHOLDERS WILL RECEIVE WARRANTS FOR THE 1430000 SHARES INSTEAD IN ADDITION THE HOLDERS OF OLD COMMON STOCK WILL RECEIVE WARRANTS TO PURCHASE A FURTHER 19 MILLION NEW COMMON SHARES EXERCISABLE FOR UP TO FIVE YEARS AT A PRICE OF 20 A SHARE US HOME WHICH PEAKED IN THE TEXAS OIL BOOM OF THE EARLY 1980S HAS BEEN OPERATING UNDER CHAPTER 11 PROTECTION SINCE APRIL 1991 IN 1992 US HOME HAD LOSSES OF 214 MILLION OR 47 CENTS PER SHARE AFTER REORGANIZATION CHARGES OF 507 MILLION IN 1991 US HOME REPORTED LOSSES OF 88 MILLION OR 20 CENTS A SHARE INCLUDING A CHARGE OF ALMOST 4 MILLION REVENUE TOTALED 6792 MILLION COMPARED WITH 4853 MILLION FOR 1991 9303040014 930304 ENTERPRISE ALLENEDMONDS SHOE TRIES JUSTINTIME' PRODUCTION BUT COMPANY PAINFULLY FINDS APPROACH ISN'T PERFECT FIT FOR SMALL CONCERNS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL JUSTINTIME PRODUCTION PRACTICES CAN WORK WONDERS FOR BIG COMPANIES BY IMPROVING EFFICIENCY BUT MANY SMALL FIRMS ARE STILL STRUGGLING TO REAP THE BENEFITS CONSIDER ALLENEDMONDS SHOE CORP A 71YEAROLD MAKER OF PRICEY SHOES THREE YEARS AGO THE PORT WASHINGTON WIS COMPANY TRIED JUSTINTIME METHODS TO SPEED PRODUCTION BOOST CUSTOMER SATISFACTION AND SAVE MONEY THE RESULT IT REALLY FLOPPED MISERABLY SAYS JOHN STOLLENWERK THE COMPANY'S PRESIDENT AND BIGGEST SHAREHOLDER THE MANUFACTURER LOST 1 MILLION ON THE PROJECT AND IN 1991 RESUMED DOING SOME THINGS THE OLD WAY JUSTINTIME PRACTICES WIDESPREAD IN JAPAN AND INCREASINGLY POPULAR IN THE US PROMISE TO REDUCE A COMPANY'S INVENTORY INVESTMENT AND SLASH PRODUCTION TIME AMONG OTHER THINGS THE JUSTINTIME APPROACH CALLS FOR SUPPLYING WORK STATIONS WITH THE PRECISE AMOUNT OF MATERIAL NEEDED AT THE EXACT TIME REQUIRED THEREBY ELIMINATING A MANUFACTURER'S WAREHOUSING OF RAW MATERIALS LARGE COMPANIES THAT DEDICATE WORKERS AND MACHINES TO PRODUCING ITEMS IN HUGE VOLUMES GENERALLY DERIVE THE GREATEST EFFICIENCIES FROM JUSTINTIME METHODS TECHNOLOGY EXPERTS SAY BUT SMALL COMPANIES WITH SHORT RUNS OF A VARIETY OF PRODUCTS OFTEN FAIL TO MAKE SUCH GAINS ALLENEDMONDS FOR INSTANCE MAKES 41000 VARIATIONS OF MEN'S AND WOMEN'S SHOES IN MANY STYLES COLORS AND SIZES AND MOSTLY IN LIMITED RUNS SO THE COMPANY MUST KEEP SWITCHING PRODUCT LINES THEREBY REDUCING EFFICIENCY IT'S SOMEWHAT DIFFICULT FOR A SMALL COMPANY TO ACHIEVE SOME OF THE JUSTINTIME GAINS OF LARGE COMPANIES SAYS THOMAS W BRUETT A PARTNER AT ERNST & YOUNG WHO ADVISED ALLENEDMONDS ON PRODUCTION TECHNIQUES LIKE OWNERS OF OTHER SMALL OLDLINE MANUFACTURING FIRMS MR STOLLENWERK ALSO HAD DIFFICULTY PERSUADING SOME OF HIS 325 PRODUCTION WORKERS TO ACCEPT CHANGE AT THE OUTSET MR STOLLENWERK THOUGHT JUSTINTIME CONCEPTS COULD STEM HIS FIRM'S LOSS OF BUSINESS FROM RETAILERS UNWILLING TO WAIT AS MANY AS EIGHT WEEKS FOR THEIR SHOE ORDERS HE SOUGHT TO SLICE OVERALL PRODUCTION TIME BY AS MUCH AS 87 TO FIVE DAYS HIS MANAGERS GREW CONFIDENT AFTER THEIR INITIAL SUCCESS WITH AUTOMATING THE COMPANY'S MAIN PLANT IN PORT WASHINGTON THAT FACTORY'S FLOOR WHERE SHOE SOLES AND UPPERS ARE STITCHED TOGETHER AND FINISHED PAIRS BOXED FOR SHIPPING USED TO BE CRAMMED WITH CARTS WORKERS PUSHED THE CARTS STOCKED WITH UNFINISHED SHOES BETWEEN WORK STATIONS IN 1988 THE COMPANY VIRTUALLY ELIMINATED THE CARTS BY INVESTING 180000 IN A CONVEYER THAT TRANSFERS WORK AUTOMATICALLY BETWEEN STATIONS THE MOVE CUT THE FACILITY'S PRODUCTION INVENTORY OF UNFINISHED SHOES TO 1200 PAIRS FROM 5000 FREEING UP NEARLY 400000 IN CAPITAL COMPANY OFFICIALS SAY AND PRODUCTION TIME FOR A PAIR OF SHOES DROPPED TO EIGHT HOURS FROM 3 1/2 DAYS PEOPLE AT THE PLANT WERE THRILLED THE MORALE WAS PRETTY HIGH SAYS JOHN GANTNER THE COMPANY'S OPERATIONS MANAGER BUT IT WASN'T SO EASY TO GET SUPPLIERS TO GO ALONG WITH JUSTINTIME STRATEGY OF MATCHING DELIVERY TO NEED SUPPLIERS OF LEATHER SOLES DID AGREE TO MAKE DELIVERIES WEEKLY RATHER THAN MONTHLY TO ALLENEDMONDS BUT EUROPEAN TANNERIES SUPPLYING CALFSKIN HIDES REFUSED TO COOPERATE THEY STUCK WITH THEIR PRACTICE OF PROCESSING HUGE QUANTITIES OF HIDES AT ONCE AND WOULDN'T HANDLE SMALL BATCHES TO MEET THE WEEKLY NEEDS OF A SMALL CUSTOMER MR STOLLENWERK SAYS A BIGGER CUSTOMER WOULD HAVE WIELDED MUCH MORE POWER OF COURSE AS A RESULT ALLENEDMONDS STILL HAS MORE THAN 1 MILLION TIED UP IN MONTHLY INVENTORIES OF HIDES THE JUSTINTIME CAMPAIGN SUSTAINED ITS WORST DEFEAT HOWEVER AT THE COMPANY'S LAKE CHURCH PLANT SIX MILES FROM THE MAIN FACTORY IN A 32000SQUAREFOOT BUILDING SMELLING OF HIDES AND LEATHER FINISHERS WORKERS CUT PIECES FROM HIDES THEN SEWED THEM TOGETHER TO MAKE UPPERS SEAMSTRESSES PAID BY PIECEWORK LABOR INTENSELY TO KEEP UP HER PACE ONE HALFSEATED WOMAN EVEN HURLS HER BODY BACK AND FORTH BETWEEN HER WORK PILE AND HER MACHINE IN 1990 MANAGERS REARRANGED THIS FACTORY'S FLOOR IN HOPES OF REDUCING THE NUMBER OF UNFINISHED SHOES FIGURING THAT SUCH ITEMS SPENT TOO MUCH TIME ON THE TWO CONVEYERS THE OFFICIALS REMOVED ONE CONVEYER THE PRODUCTION INVENTORY OF UNCOMPLETED SHOES FELL DRAMATICALLY BUT EFFICIENCY DROPPED MR STOLLENWERK PUTS MUCH OF THE BLAME ON HIS DECISION TO SUBSTITUTE HOURLY WAGES FOR THE COMPANY'S PIECEWORK PAY SYSTEM A CHANGE HE CONSIDERED INTEGRAL TO HIS JUSTINTIME STRATEGY WE WANTED TO SEE IF WE COULD CREATE A NEW CULTURE HE EXPLAINS JUSTINTIME THEORY ENCOURAGES PRODUCTION WORKERS TO FOCUS ON QUALITY AND TEAMWORK EXPERTS SAY PIECEWORK ON THE OTHER HAND CENTERS WORKERS' ATTENTION ON HANDLING INDIVIDUAL JOBS AS FAST AS POSSIBLE GOING OFF PIECEWORK MIGHT WORK GREAT IN JAPAN AND SOUTHERN ILLINOIS BUT IT DIDN'T WORK GREAT HERE OUR PEOPLE NEEDED THE DISCIPLINE THAT THE PIECEWORK SYSTEM GIVES TO THEM MR STOLLENWERK EXPLAINS AS PRODUCTIVITY PLUMMETED ALLENEDMONDS WORKERS COMPLAINED ABOUT COWORKERS SLACKING OFF JACQUELINE SUMMERS WHO MAKES 9 TO 10 AN HOUR STITCHING WINGTIPS AND OTHER PIECES SAYS SHE OBSERVED MORE BREAKS MORE LAUGHING MORE GIGGLING A STITCHER MUST PAY ATTENTION SHE INSISTS BECAUSE YOU SEE THE SAME SHOE ALL DAY LONG IN A NINEHOUR DAY AND YOUR EYES CAN EVENTUALLY CROSS FINALLY AFTER THE COMPANY LOST 1 MILLION IN 1990 IT REINSTATED PIECEWORK AT LAKE CHURCH MR STOLLENWERK'S MANAGERS PUT MORE UNFINISHED ITEMS BACK ON THE FACTORY FLOOR SO WORKERS WOULD HAVE MORE TO DO AND THE EXECUTIVE COMPROMISED ON HIS ORIGINAL GOAL OF CUTTING THE COMPANY'S TOTAL PRODUCTION TIME TO FIVE DAYS SETTLING FOR TWO TO THREE WEEKS INSTEAD MR STOLLENWERK SAYS PRODUCTIVITY SHOT BACK UP AND IN 1991 THE COMPANY BECAME PROFITABLE AGAIN THE JUSTINTIME PROGRAM DID SAVE ALLENEDMONDS 35 MILLION IN INVENTORY OVERHEAD THE MODEST IMPROVEMENT IN HIS PRODUCTION TIME ALSO HAS HELPED TO RETAIN RETAILING CUSTOMERS HE ADDS BUT HE GRUMBLES THAT EFFICIENCY EXPERTS HAVE YET TO COME UP WITH A JUSTINTIME SOLUTION FOR SMALL MANUFACTURERS WHICH OFTEN REQUIRE MORE LIMITED PRODUCTION RUNS THAN THEIR BIGGER RIVALS SOME ALLENEDMONDS WORKERS LONG FOR SUCH A SOLUTION TOO BECAUSE THEY LIKED THE HOURLY WAGE SYSTEM LUELLA ANSAY A 55YEAROLD STITCHER SAYS THAT A NINEHOUR SHIFT OF PIECEWORK IS HARD FIVE YEARS AGO I COULD PUSH IT OUT LIKE YOU WOULDN'T BELIEVE BUT THE YEARS GO ON AND YOU JUST CAN'T 9303040013 930304 BUSINESS BRIEF MONEY STORE INC FOURTHPERIOD YEAR NET GREW ON LOAN DEMAND RISE MONEY STORE INC UNION NJ REPORTED A 45 INCREASE IN FOURTHQUARTER EARNINGS AND A 34 INCREASE FOR THE FULL YEAR WHICH IT ATTRIBUTED TO INCREASED LOAN DEMAND THE CONSUMER FINANCE COMPANY SAID NET INCOME FOR THE QUARTER ROSE TO 44 MILLION OR 55 CENTS A SHARE FROM 3 MILLION OR 38 CENTS A SHARE IN THE 1991 QUARTER FOR THE YEAR EARNINGS ROSE TO 152 MILLION OR 190 A SHARE FROM 114 MILLION OR 184 A SHARE IN 1991 PERSHARE RESULTS REFLECT A 30 INCREASE IN SHARES OUTSTANDING AFTER AN INITIAL PUBLIC OFFERING OF 25 MILLION SHARES IN THE 1991 THIRD QUARTER REVENUE FOR THE QUARTER ROSE 24 TO 47 MILLION FROM 38 MILLION YEARLY REVENUE GREW 12 TO 1573 MILLION FROM 1403 MILLION MARC TURTLETAUB CHIEF EXECUTIVE SAID THE COMPANY REACHED RECORD LEVELS OF LOAN ORIGINATIONS AND LOANS OUTSTANDING IN 1992 ITS LOAN SERVICING PORTFOLIO ROSE 10 IN THE YEAR TO ABOUT 3 BILLION MONEY STORE SPECIALIZES IN HOME EQUITY LOANS AND SMALL BUSINESS LOANS 9303040012 930304 WHAT'S NEWS WORLDWIDE THE SECURITY COUNCIL URGED STEPS TO HALT A SERB OFFENSIVE IN BOSNIA THE 15MEMBER COUNCIL ASKED THE UN SECRETARYGENERAL TO SEND TROOPS OR OBSERVERS INTO EASTERN BOSNIA AND ISSUED A CONDEMNATION OF CIVILIAN KILLINGS BY SERB FORCES BUT THE UN COUNCIL MEETING AT THE REQUEST OF THE US DIDN'T SPECIFY WHAT THE TROOPS WERE TO DO PRESIDENT CLINTON MEANWHILE SAID RELIEF AIRDROPS WOULD CONTINUE BOSNIAN MUSLIMS TREKKED THROUGH SNOW TO COLLECT THE US AID BUNDLES BUT THEY REPORTEDLY CAME UNDER HEAVY SERB ATTACK BOSNIA'S MUSLIMLED GOVERNMENT JOINED SERBS AND CROATS IN ACCEPTING A FUTURE CEASEFIRE TAKING A KEY STEP TOWARD PEACE UN DIPLOMATS SAID A CULT LEADER IN WACO TEXAS SAID GOD TOLD HIM TO WAIT FOR INSTRUCTIONS BEFORE HE TAKES STEPS TO END A FOURDAYOLD SIEGE AND FEDERAL AGENTS SAID OVER 100 FOLLOWERS MAY BE IN HIS COMPOUND TWO WOMEN WHO HAVE LEFT THE COMPOUND FIRED WEAPONS DURING A RAID SUNDAY OFFICIALS SAID NEW YORK INVESTIGATORS LOCATED WHAT THEY SAID WAS THE EXACT SITE OF THE BOMB THAT RIPPED THROUGH THE WORLD TRADE CENTER ON FRIDAY POLICE SAID THE BLAST APPARENTLY TOOK PLACE ON A PARKING RAMP IN THE COMPLEX'S UNDERGROUND GARAGE MEANWHILE AUTHORITIES ANNOUNCED THAT THE TWIN TOWERS COMPLEX WOULDN'T REOPEN UNTIL APRIL RUSSIA'S TOP ARMY COMMANDERS TOLD PRESIDENT YELTSIN HE SHOULD TAKE RESOLUTE ACTION TO RESOLVE HIS POWER STRUGGLE WITH THE COUNTRY'S CONSERVATIVE PARLIAMENT THE NEWSPAPER IZVESTIA REPORTED DEFENSE MINISTER GRACHEV SUMMONED JOURNALISTS AFTER THE MEETING TO DISMISS ANY SUGGESTION THE GENERALS WERE PREPARING A COUP SOME EXSOVIET REPUBLICS ARE SETTING UP THEIR OWN DEFENSE INDUSTRIES BY USING FORMER SOVIET FACILITIES THAT ARE ON THEIR TERRITORY ACCORDING TO A CIA STUDY RUSSIA UKRAINE GEORGIA UZBEKISTAN AND KAZAKHSTAN ARE PRODUCING MAJOR WEAPONS SYSTEMS AND MILITARY EQUIPMENT THE STUDY SAID SCIENTISTS HAVE PINPOINTED A FAULTY GENE THAT CAUSES INHERITED CASES OF LOU GEHRIG'S DISEASE A DEGENERATIVE NERVE DISORDER THE DISCOVERY SUGGESTS THAT EXISTING DRUGS MAY HELP ALLEVIATE THE FATAL DISEASE THAT AFFLICTS ABOUT 25000 AMERICANS A REPORT ON THE STUDY APPEARS IN TODAY'S ISSUE OF THE JOURNAL NATURE DOCTOR BILLS FOR OLDER PEOPLE VARY ACROSS THE US AND ARE TWICE AS HIGH IN SOME PLACES AS IN OTHERS A STUDY FOUND MIAMI IS THE MOST EXPENSIVE CITY IN WHICH TO GET SICK AT LEAST IN TERMS OF PHYSICIAN CHARGES SAN FRANCISCO IS THE LEAST EXPENSIVE ACCORDING TO THE STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE GERMAN POLICE SEIZED WEAPONS AMMUNITION NAZI SYMBOLS AND A BUST OF HITLER IN RAIDS ON 60 APARTMENTS BELONGING TO SUSPECTED RIGHTWING EXTREMISTS FIFTY MEN WERE DETAINED IN THE THREESTATE SWEEP WHICH ALSO UNCOVERED A TERRORIST ORGANIZATION IN ITS INFANCY A LOWER SAXONY STATE PROSECUTOR ANNOUNCED SWISS LAWMAKERS REJECTED A FEMINIST CANDIDATE FOR THE ALLMALE CABINET CREATING A DEADLOCK THAT SENT HER PARTY IN SEARCH OF OTHER FEMALE CONTENDERS CHRISTIANE BRUNNER A LAWYER WHO HEADS A LABOR UNION WOULD HAVE BEEN THE SECOND WOMAN MINISTER IN SWISS HISTORY HUNDREDS OF WOMEN PROTESTED OUTSIDE THE PARLIAMENT BUILDING TWO RIVAL AFGHAN LEADERS AGREED TO SHARE POWER FOR 18 MONTHS AND THEN HOLD ELECTIONS PAKISTANI OFFICIALS SAID THE ACCORD REPORTEDLY CALLS FOR AFGHAN PRESIDENT RABBANI TO REMAIN IN HIS POST AND FOR RIVAL LEADER HEKMATYAR TO BECOME PRIME MINISTER THE BREAKTHROUGH CAME DURING A MEETING IN ISLAMABAD BETWEEN THE TWO MEN A US SOLDIER WAS KILLED BY A LAND MINE IN NORTHERN SOMALIA THE SECOND AMERICAN DEATH THERE IN AS MANY DAYS A US MILITARY SPOKESMAN IN MOGADISHU ALSO ANNOUNCED THAT TWO MARINES FACED HEARINGS ON WHETHER THEY USED EXCESSIVE FORCE IN SHOOTINGS THAT KILLED ONE SOMALI AND WOUNDED ANOTHER DIED ALBERT SABIN 86 DEVELOPER OF THE ORAL POLIO VACCINE IN WASHINGTON OF CONGESTIVE HEART FAILURE 9303040011 930304 INDUSTRY FOCUS TWO MAJOR GARBAGE RIVALS FIND THEIR PROFITS TRASHED BOTH MAKE MILLIONS HAULING THE STUFF BUT LOSE BIG BUCKS RECYCLING IT BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL BIG GARBAGE HAULERS MAKING LOTS OF MONEY IN WHAT HAS BEEN AN UNPOPULAR BUSINESS TRADITIONALLY FIND THEMSELVES TRAPPED IN A VERY POPULAR BUSINESS THAT MOSTLY LOSES MONEY RECYCLING IT'S THE ONE THING WE DO THAT EVERYBODY LIKES WILLIAM D RUCKELSHAUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BROWNINGFERRIS INDUSTRIES INC SAYS WEARILY WE'LL HAVE TO MAKE THE BEST OF IT NO 2 HAULER BROWNINGFERRIS AND ITS LARGER RIVAL WASTE MANAGEMENT INC EACH HAVING INVESTED HUNDREDS OF MILLIONS OF DOLLARS IN RECYCLING ARE JUST BEGINNING TO EKE OUT SMALL PROFITS FROM THE PROCESS HOWEVER LOSSES COULD RESUME AS RISING VOLUMES OF NEWSPRINT GLASS AND OTHER RECYCLABLE COMMODITIES DEPRESS PRICES AND AS MARKETS FOR RECYCLED GOODS DEVELOP ONLY SLOWLY HOW THESE GARBAGE GIANTS CAME TO BE TRAPPED IN THIS BUSINESS IS A TALE OF TWO WIDELY BELIEVED NOTIONS RUN AMOK IN ALL WASTE MANAGEMENT SAYS IT COSTS ABOUT 175 TO COLLECT AND SORT AN AVERAGE TON OF RECYCLABLES WHICH ARE THEN WORTH ABOUT 44 THE DIFFERENCE IS MOSTLY MADE UP BY FEES MUNICIPALITIES AND OTHER CUSTOMERS PAY FOR THE RECYCLING SERVICE ON SOME EARLY CONTRACTS THOUGH HAULERS THEMSELVES ASSUMED MUCH OF THE RISK THAT PRICES FOR RECYCLABLES WOULD FALL AND THAT HAS BEEN COSTLY DESPITE SOME FLAWED REASONING BEHIND IT THE URGE TO RECYCLE RESULTED IN LAWS IN MORE THAN 40 STATES REQUIRING THAT 10 TO 50 OR MORE OF TRASH BE DIVERTED FROM TRADITIONAL DISPOSAL TO SOME REUSE BY THE YEAR 2000 HAULERS WITH BIG FLEETS OF TRUCKS WERE A NATURAL TO COLLECT THE STUFF AND THEY HAD LITTLE CHOICE IN MANY CITIES GARBAGE COLLECTION AND RECYCLING ARE PARTS OF THE SAME CONTRACT EVEN AS RECYCLING'S POOR PROFIT PROSPECTS BECAME APPARENT THE HAULERS WERE SURPRISED AT HOW CONSUMERS ESPECIALLY CHILDREN EMBRACED THE SERVICE PARENTS AND SCHOOLS ALIKE HAVE USED RECYCLING AS A HANDSON WAY TO TEACH YOUNGSTERS ABOUT THE ENVIRONMENT AND NEITHER WASTE MANAGEMENT NOR BROWNINGFERRIS OFTEN VILIFIED FOR ENVIRONMENTAL MISDEEDS REAL AND IMAGINED AT THEIR FACILITIES IS ANXIOUS TO RAIN ON THE RECYCLING PARADE WE'RE IN A NORETURN POSITION SAYS BRUCE E RANCK PRESIDENT AND CHIEF OPERATING OFFICER OF BROWNING FERRIS WERE IT NOT FOR THE WAY WE DEAL WITH OUR CHILDREN GOOD ARGUMENTS COULD BE MADE THAT WOULD ULTIMATELY PREVAIL WITH ADULTS THAT WE'VE GONE TOO FAR TOO FAST BOTH COMPANIES WITH THEIR HUGE NETWORKS OF SORTING PLANTS AND TRUCKS ARE TRYING TO INCREASE THE VOLUMES THEY HANDLE TO BOOST INVESTMENT RETURN WASTE MANAGEMENT LAGS WITH LESS THAN 50 CAPACITY BEING USED AT ITS 125 SORTING PLANTS BROWNINGFERRIS SAYS ITS 70 SORTING PLANTS OPERATE AT MORE THAN 70 OF CAPACITY THAT ACCOUNTS FOR THE NO 2 HAULER'S BETTER RESULTS ITS OPERATING PROFIT MARGIN IN RECYCLING ROSE INTO THE MIDTOHIGH SINGLE DIGITS DURING THE QUARTER ENDED SEPT 30 UP FROM SLIGHTLY BETTER THAN BREAKEVEN FOR FISCAL 1992 ENDED SEPT 30 WASTE MANAGEMENT SAYS ITS RECYCLING BUSINESS HAS IMPROVED TO SLIGHTLY BETTER THAN BREAKEVEN NEITHER COMPANY WILL DISCLOSE ACTUAL REVENUE OR PROFIT FOR NOW BROWNINGFERRIS'S APPROACH TO RECYCLING HAS WORKED BETTER MR RUCKELSHAUS A FORMER ENVIRONMENTAL PROTECTION AGENCY CHIEF WHO JOINED AS CHAIRMAN IN 1988 WAS ENTHUSIASTIC ABOUT THE GROWING PUBLIC INTEREST IN RECYCLING ALTHOUGH THE COMPANY WASN'T INITIALLY THE HOUSTONBASED COMPANY HAD BOUGHT AND THEN SOLD AT A LOSS A WASTEPAPER RECYCLER IN THE MID1970S BURNED ONCE THEY WERE SUSPICIOUS MR RUCKELSHAUS SAYS THE COMPANY MOVED CAUTIOUSLY IN BUILDING THE BUSINESS TO RUN RECYCLING MR RUCKELSHAUS OPTED FOR A VETERAN WASTEPAPER BROKER AND BUYER ROBERT H DAVIS RATHER THAN A HAULING EXECUTIVE AND WHEN THE COMPANY'S VOLUME BECAME SUFFICIENTLY BIG MR DAVIS IN TURN HIRED SIX MORE EXPERIENCED BROKERS TWO OF THEM GRANDSONS OF RAG MERCHANTS TO MARKET THE RECYCLABLES BROWNINGFERRIS COLLECTS AROUND THE NATION THE COMPANY ESTIMATES THE BROKER GROUP LAST YEAR ADDED ABOUT 350 A TON TO THE PRICE IT RECEIVED FOR MATERIALS IN WHAT COULD BE CONSIDERED AN INVESTORS ROUNDTABLE FOR TRASH THE BROKERS MEET IN HOUSTON FOR A WEEK EVERY OTHER MONTH TO COMPARE NOTES ON PRICE TRENDS AND BUYERS IN A CONFERENCE CALL THEY THEN PASS THEIR VIEWS ON TO THE COMPANY'S RECYCLING MANAGERS FOR ITS PART WASTE MANAGEMENT MOVED INTO RECYCLING MORE AGGRESSIVELY SETTING UP BIG JOINT VENTURES WITH PAPER CAN AND PLASTICS MANUFACTURERS AT ITS OAK BROOK ILL HEADQUARTERS RECYCLED PRODUCTS BECAME THE ORDER OF THE DAY RIGHT DOWN TO THE TOILET PAPER RECYCLING CHIEF JANE G WITHERIDGE THEN A STAR OF THE CORPORATE ADVERTISING CAMPAIGN HAD TO REASSURE ONE EMPLOYEE THAT RECYCLED TOILET PAPER ISN'T MADE FROM USED TOILET PAPER BUT LOSING MONEY WAS A STRAIN THE PLASTICS JOINT VENTURE WITH WASTE MANAGEMENT'S BIGGEST OVERALL CUSTOMER DU PONT CO COLLAPSED THAT MADE DEAN L BUNTROCK WASTE MANAGEMENT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MOST UNHAPPY AND ABOUT A YEAR AGO HE BEGAN TO TALK LESS ABOUT RECYCLING'S PROMISE AND MORE ABOUT ITS PROBLEMS MS WITHERIDGE ISN'T IN THE NEW CORPORATE AD CAMPAIGN WHICH BEGINS IN MAY SHE'S BUSY MEETING CUSTOMERS AND PUBLIC OFFICIALS TO SPREAD THE NEW RECYCLING THEME A SHARED RESPONSIBILITY WHICH IMPLIES WASTE MANAGEMENT BELIEVES IT HAS BORNE MORE THAN ITS SHARE 9303040010 930304 WHO'S NEWS PREMARK INTERNATIONAL INC PREMARK INTERNATIONAL INC DEERFIELD ILL MICHAEL HAGERTY VICE PRESIDENT OF US MARKET DEVELOPMENT AT AVON PRODUCTS INC WAS NAMED PRESIDENT OF TUPPERWARE NORTH AMERICA A UNIT OF THE CONSUMER AND RESTAURANT PRODUCTS CONCERN EFFECTIVE MARCH 15 MR HAGERTY 44 YEARS OLD SUCCEEDS AJ ENGLISH WHO IS RETIRING 9303040009 930304 REVIEW & OUTLOOK EDITORIAL ST PATRICK'S PARADE LOST AMID THE GRIM RUBBLE OF LAST FRIDAY'S BOMB BLAST AT THE WORLD TRADE CENTER WAS THE MOMENTOUS DECISION IN NEW YORK'S FEDERAL DISTRICT COURT TO PERMIT THE ST PATRICK'S DAY PARADE UNDER THE AUSPICES OF THE NEW YORK COUNTY BOARD OF THE ANCIENT ORDER OF HIBERNIANS THUS 1993 WILL NOT BE THE FIRST YEAR SINCE 1762 THAT THE FABLED PARADE HASN'T APPEARED NOW WE DON'T KNOW WHETHER THIS TRULY MEANS THAT ST PATRICK HIMSELF CAN STOP TURNING IN HIS GRAVE OVER THE REMARKABLE DEBATES LATELY SWIRLING AROUND HIS GOOD NAME THE HEART OF THE MATTER WAS THAT THE HIBERNIANS THOUGHT IT DISCONSONANT WITH THE PARADE'S GUIDING VALUES AND SPIRIT TO HAVE A GROUP MARCHING UNDER THE PROCLAIMING BANNER OF IRISH GAYS AND LESBIANS AGAINST THIS THE IRISH GAYS AND LESBIANS BELIEVED THAT BANNING THEM FROM THE PARADE CONSTITUTED A HUMANRIGHTS VIOLATION EARLY REACTION TO THE DECISION ON BEHALF OF THE HIBERNIANS SUGGESTS THAT THE IRISH LESBIAN AND GAY ORGANIZATION AND THEIR MULTIPLE NONIRISH FRIENDS PLAN TO DEMONSTRATE LOUDLY ALONG FIFTH AVENUE ON MARCH 17 INDEED NO COMMANDMENT IS MORE SACRED IN THE MODERN LIFE OF NEW YORK CITY THAN THAT ONE SHOULD ALWAYS RAIN DOWN VITUPERATION UPON ONE'S ENEMIES INDEED BOTH THE FREEDOM TO ASSOCIATE AND TO VITUPERATE LIE AT THE CENTER OF THE DECISION BY JUDGE KEVIN THOMAS DUFFY NOW LET IT IMMEDIATELY BE NOTED THAT JUDGE KEVIN THOMAS DUFFY TOOK GREAT PAINS TO POINT OUT THAT THIS COURT HOLDS NO BRIEF FOR EITHER SIDE IN THIS CONTROVERSY INDEED JUDGE DUFFY FELT CONSTRAINED TO INSTRUCT HIS AUDIENCE I CANNOT ENVISION A PARADE PUT ON BY ANY ORGANIZATION THAT WOULD RESTRICT ITS PARTICIPANTS SOLELY TO THOSE INDIVIDUALS WHO HAVE NEVER SINNED SUCH A GATHERING SURELY WOULD BE QUITE SMALL IN NUMBER AND THOSE WHO WOULD HOLD THEMSELVES OUT AS ENTITLED MOST LIKELY WOULD BE HYPOCRITES FROM THIS WISDOM JUDGE DUFFY PROCEEDED TO ELUCIDATE TRUTHS THAT SHOULD HAVE BEEN SELFEVIDENT BUT THIS BEING AMERICA NO TRUTH IS SO OBVIOUS THAT IT CANNOT BE LITIGATED THESE ARE JUDGE DUFFY'S WORDS THIS COURT HOLDS THAT THE RULING OF THE CITY'S HUMAN RIGHTS COMMISSION IS VIOLATIVE OF THE FIRST AMENDMENT IN TWO ASPECTS THIS COURT DOES NOT MEAN TO SUGGEST THAT THE MEMBERS OF THE CITY HUMAN RIGHTS COMMISSION INTENTIONALLY SET OUT TO VIOLATE THE FIRST AMENDMENT TO THE CONSTITUTION SURELY THEY ARE GOOD PERSONS MOTIVATED BY GOOD INTENTIONS BUT IT IS THE AMERICAN WAY FOR POLITICAL LEADERS TO SEEK TO CONVINCE CITIZENS OF THE CORRECTNESS OF SOME VIEW BY PERSUASION AND NOT BY FIAT NOT MUCH MORE NEED BE SAID OTHER THAN TO POINT OUT THAT WHEN YOUNG ST PATRICK ARRIVED IN IRELAND IN THE FIFTH CENTURY HE WAS IN CONSTANT DANGER OF BEING SLAUGHTERED BY THE HEATHEN IRISH HE SURVIVED AND SUCCEEDED BECAUSE TO AGAIN CITE THE WISE WORDS OF JUDGE KEVIN THOMAS DUFFY HE CONVINCED A HOSTILE PEOPLE OF THE CORRECTNESS OF SOME VIEW BY PERSUASION AND NOT BY FIAT WOULD THAT THIS COUNTRY'S MULTITUDES OF POLITICAL ENEMIES TRY TO DO THE SAME 9303040008 930304 ECONOMY REVISED FIGURES ON DEFICIT SPUR SEARCH FOR CUTS PROJECTED SAVINGS SHORTFALL COULD THREATEN SUPPORT FOR SPENDING INITIATIVES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REVISED ESTIMATES OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN ARE DRIVING DEMOCRATS TO FIND MORE SPENDING CUTS AND COULD THREATEN SUPPORT FOR THE ADMINISTRATION'S AMBITIOUS PUBLIC INVESTMENT INITIATIVES THE NEW FIGURES COMPILED BY THE CONGRESSIONAL BUDGET OFFICE AND JOINT COMMITTEE ON TAXATION SUGGEST THAT PROPOSED SPENDING CUTS AND HIGHER TAXES IN THE PRESIDENT'S PLAN WILL FALL MORE THAN 60 BILLION SHORT OF EXPECTED SAVINGS AND RECEIPTS OVER THE NEXT FIVE YEARS THE RESULT IS TO LESSEN THE IMPACT OF THE ADMINISTRATION'S PROGRAM EVEN THOUGH THE UNDERLYING PROJECTIONS SHOW THE DEFICIT SHRINKING IN FISCAL 1997 AND 1998 FOR EXAMPLE THE WHITE HOUSE WOULD MEET OR SURPASS ITS DEFICIT GOALS ACCORDING TO THE CBO OWING PARTLY TO HIGHER REVENUES FROM THE EXISITING TAX BASE DISCREPANCIES OVER TAX AND SPENDING PROJECTIONS ACCOUNT FOR ALMOST EQUAL SHARES OF THE SHORTFALL BUT THE ISSUE OF SPENDING CUTS IS FAR MORE SENSITIVE FOR DEMOCRATS AT A TIME WHEN THEY MUST ASK VOTERS TO ACCEPT LARGE TAX INCREASES WHITE HOUSE CHIEF OF STAFF THOMAS MACK MCLARTY MET YESTERDAY WITH DEMOCRATIC MODERATES IN THE HOUSE AND THERE IS GROWING PRESSURE THAT THE OVERALL LEVEL OF SPENDING CUTS PROMISED BY THE PRESIDENT MUST BE MET THUS ANY SHORTFALL CITED BY THE CBO WOULD HAVE TO BE MATCHED BY NEW SAVINGS WHICH COULD PUSH THE DEFICIT TARGET FOR 1997 BELOW 200 BILLION THOSE NUMBERS ARE OUT THERE WE ARE NOT GOING AROUND THEM SAID REP GEORGE MILLER D CALIF THERE IS AN AMAZING UNFILTERED DIALOGUE GOING ON BETWEEN MEMBERS AND VOTERS AT HOME PEOPLE SAY THEY WILL LIVE WITH NEW TAXES BUT THIS DEFICIT REDUCTION DAMN WELL BETTER BE REAL MR MCLARTY A FORMER BUSINESS EXECUTIVE AND A FRIEND OF THE PRESIDENT HAS EMERGED AS AN EFFECTIVE INTERMEDIARY WITH MODERATES ON ECONOMIC ISSUES AND IS EXPECTED TO MEET WITH SOUTHERN CONSERVATIVES TODAY AT THE SAME TIME THERE IS AN UNDERLYING CONCERN IN THE ADMINISTRATION THAT THE POLITICAL PRESSURE TO REDUCE THE DEFICIT COULD ULTIMATELY JEOPARDIZE MR CLINTON'S PUBLICINVESTMENT INITIATIVES WHICH HE SEES AS IMPORTANT TO THE NATION'S LONGTERM ECONOMIC RECOVERY THAT IS A CONCERN SAID WHITE HOUSE BUDGET DIRECTOR LEON PANETTA WHO MET LAST NIGHT WITH MODERATE HOUSE REPUBLICANS BEFORE JOINING HIS FORMER DEMOCRATIC COLLEAGUES ON THE HOUSE BUDGET COMMITTEE THE PANEL IS TO TAKE UP THE BUDGET RESOLUTION NEXT WEEK THE PRESIDENT FEELS VERY STRONGLY ABOUT THE INVESTMENT PROPOSALS MR PANETTA SAID WE THINK OUR NUMBERS ARE SOLID BUT IF THE FEELING IS THAT THE HOUSE HAS TO HAVE THE BLESSING OF CBO WE'LL WORK WITH THEM REPUBLICANS HAVE FOCUSED THEIR ATTACKS ON MR CLINTON'S SPENDING PROPOSALS WHICH TOTAL AT LEAST 144 BILLION OVER FIVE YEARS AND CONCENTRATE ON IMPROVED EDUCATION AND HEALTH PROGRAMS FOR POOR CHILDREN AS WELL AS MORE TRADITIONAL INVESTMENTS IN HIGHTECHNOLOGY AND INFRASTRUCTURE IN PRIVATE CONVERSATIONS WITH PANEL MEMBERS HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO HAS SPOKEN OF A TENSION BETWEEN THE PRESIDENT'S INITIATIVES AND THE PRESSURE FOR CUTS AND AS A MEMBER OF THE HOUSE APPROPRIATIONS COMMITTEE THE MINNESOTA DEMOCRAT IS EXPECTED TO TRY TO PROTECT THE DISCRETION TRADITIONALLY LEFT TO THAT PANEL THE NEW CBO AND JOINT TAXATION COMMITTEE NUMBERS ILLUSTRATE THE DILEMMA FOR THE WHITE HOUSE THE DISCREPANCY OVER SAVINGS STEMS LARGELY FROM DIFFERENCES OVER ACCOUNTING FOR THE ADMINISTRATION'S MEDICARE PROPOSALS AS WELL AS A STILLUNDEFINED TREASURY PROPOSAL TO BETTER MANAGE THE NATION'S DEBT BY SHIFTING TO SHORTERTERM GOVERNMENT SECURITIES IN THE CASE OF REVENUES THE JOINT COMMITTEE FOUND A SHORTFALL IN THE PROMISED RECEIPTS FROM NEW TAXES SUCH AS HIGHER INCOME TAXES ON THE WEALTHY AND SUGGESTS THAT SOME OF THE TAX CUTS PROMISED BY THE ADMINISTRATION SUCH AS EASING THE CORPORATE MINIMUM TAX BY CHANGING DEPRECIATION RULES WILL LOSE MORE REVENUE THAN PREDICTED BY THE TREASURY AS ESTIMATED BY THE CBO THE ADMINISTRATION'S BUDGET WILL STEADILY WORK TO REDUCE THE DEFICIT THOUGH THE PACE IS SLOWER THAN FIRST PREDICTED BY THE PRESIDENT FOR THE FISCAL YEAR BEGINNING OCT 1 THE CBO PUTS THE DEFICIT AT 2611 BILLION OR ABOUT 6 BILLION MORE THAN THE WHITE HOUSE PROJECTED AND IN FISCAL 1995 THE DEFICIT WOULD FALL ONLY MARGINALLY TO 257 BILLION COMPARED WITH THE ADMINISTRATION'S PREDICTION OF 242 BILLION FOR FISCAL 1997 HOWEVER THE CBO AGREES WITH THE WHITE HOUSE ON A DEFICIT OF ABOUT 205 BILLION BUT WHILE THE ADMINISTRATION CLAIMS THAT ITS PLAN WILL PRODUCE 140 BILLION IN DEFICIT REDUCTION THAT YEAR THE CBO CREDITS THE WHITE HOUSE PLAN WITH 1167 BILLION THE PRESSURE FROM DEMOCRATS FOR MORE SAVINGS COMES AS REPUBLICAN CONSERVATIVES ARE PROPOSING FAR DEEPER REDUCTIONS AS A COUNTER TO THE TAX INCREASES SOUGHT BY THE PRESIDENT THE LATEST ENTRY CAME YESTERDAY FROM COLORADO SEN HANK BROWN WHO OUTLINED A FIVEYEAR PLAN THAT INCLUDES NONE OF THE TAX INCREASES OR CUTS PROPOSED BY THE PRESIDENT BUT WOULD ACHIEVE SMALLER DEFICITS BY TRYING TO SLOW THE GROWTH OF BENEFIT PROGRAMS LIKE MEDICARE MR BROWN'S NO TAX PLAN APPEALS TO CONSERVATIVES BUT HIS SAVINGS ON ENTITLEMENT PROGRAMS ARE OFTEN UNSPECIFIED AND MAY DEMAND DEEPER CUTS THAN HE HAS ACKNOWLEDGED MOREMODERATE REPUBLICANS ARE WILLING TO CONSIDER SOME TAX INCREASES BUT WOULD ALSO CUT MORE FROM MR CLINTON'S SPENDING PROPOSALS IN ORDER TO DO AWAY WITH THE PROPOSED ENERGY TAX WHICH FALLS ON MIDDLEINCOME HOUSEHOLDS I'M TIRED OF DEFENDING MILLIONAIRES SAID REP STEVE GUNDERSON R WIS GREG HITT CONTRIBUTED TO THIS ARTICLE 9303040007 930304 BUSINESS BRIEF BALDWIN PIANO & ORGAN CO AGREEMENT TO BE ACQUIRED IS EXTENDED FOR SECOND TIME BALDWIN PIANO & ORGAN CO CINCINNATI SAID IT EXTENDED FOR A SECOND TIME AN AGREEMENT IN PRINCIPLE TO BE ACQUIRED AMID SIGNS THAT ITS PROSPECTIVE BUYER PERIDOT ASSOCIATES INC WAS HAVING TROUBLE ARRANGING FINANCING FOR THE DEAL BALDWIN SAID THAT IN ADDITION TO EXTENDING THE AGREEMENT UNTIL MAY 16 THE TWO COMPANIES AMENDED IT TO ALLOW BALDWIN TO TALK TO OTHER POTENTIAL MERGER PARTNERS AND TO REMOVE ANY CONTINGENCY RELATING TO PERIDOT'S ABILITY TO OBTAIN FINANCING HARRY FORBES BALDWIN'S VICE PRESIDENT AND TREASURER DISCOUNTED SUGGESTIONS THE DEAL MIGHT BE IN DANGER SAYING I DON'T HAVE ANY REASON TO BELIEVE IT WON'T GO THROUGH THE PACT HAD BEEN SET TO EXPIRE TUESDAY IN THE ABSENCE OF A DEFINITIVE AGREEMENT IT CALLS FOR PERIDOT TO BUY THE KEYBOARD INSTRUMENTS MAKER FOR 62 MILLION OR 1825 A SHARE PERIDOT IS AN INVESTMENT GROUP BASED IN WEST PALM BEACH FLA 9303040006 930304 CREDIT RATINGS TIMES MIRROR CO LOS ANGELES STANDARD & POOR'S CORP SAID IT REDUCED BY ONE NOTCH ITS RATING ON TIMES MIRROR'S 900 MILLION OF SENIOR DEBT TO SINGLEAPLUS FROM DOUBLEAMINUS REFLECTING CONTINUED WEAK ECONOMIC CONDITIONS IN SOME OF THE COMPANY'S KEY MEDIA MARKETS STANDARD & POOR'S SAID THAT DESPITE CURRENT WEAK CONDITIONS TIMES MIRROR'S MAJOR NEWSPAPER PROPERTIES REMAIN WELL POSITIONED THE RATING CONCERN SAID CAPITAL SPENDING AND OTHER CASH USES HAVE BEEN BROUGHT IN LINE WITH LOWER CASH FLOW AND THAT TIMES MIRROR'S FINANCIAL CONDITION ISN'T EXPECTED TO WORSEN 9303040005 930304 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 WISCONSIN ELECTRIC POWER CO 130 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS WAS PRICED THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO THE FIRST PART CONSISTING OF 30 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 15 1996 WAS PRICED AT PAR TO YIELD 45 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 28 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 15 2016 WAS PRICED AS 7 1/8 AT 98402 TO YIELD 7269 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 485 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP WISCONSIN ELECTRIC POWER IS A UNIT OF WISCONSIN ENERGY CORP KANSAS CITY SOUTHERN INDUSTRIES INC 100 MILLION ISSUE OF NOTES DUE MARCH 1 2005 WAS PRICED AS 6 5/8 AT 99175 TO YIELD 6726 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP CHEMICAL BANKING CORP 100 MILLION ISSUE OF NOTES DUE MARCH 11 1996 WAS PRICED TO FLOAT QUARTERLY AT A SPREAD OF 050 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE TO A 7 CAP THE ISSUE WHICH PAYS INTEREST QUARTERLY IS NONCALLABLE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH KIDDER PEABODY & CO CHESAPEAKE CORP 85 MILLION ISSUE OF NOTES DUE MARCH 15 2005 WAS PRICED AS 720 AT 99681 TO YIELD 724 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 135 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 SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP A 125 MILLION ISSUE OF DEBENTURES DUE MARCH 11 1996 WAS PRICED AT PAR TO YIELD 44 THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 185 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH PRUDENTIAL SECURITIES INC FLORIDA DEPARTMENT OF MANAGEMENT SERVICES DIVISON OF FACILITIES MANAGEMENT A JP MORGAN SECURITIES INC GROUP IS BELIEVED TO HAVE WON THE 167110000 OF BONDS JP MORGAN APPARENTLY WON THE SERIES 1992 FACILITIES POOL REVENUE REFUNDING BONDS YIELDS WERE SET AT 210 IN 1993 TO 547 IN 2014 THE ISSUE IS INSURED BY AMBAC INDEMNITY CORP AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P DALLAS 429 MILLION SERIES 1993 WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS HAVE BEEN REPRICED BY A SMITH BARNEY HARRIS UPHAM & CO INC GROUP DUE TO STRONG DEMAND YIELDS FOR A NUMBER OF SECURITIES WERE LOWERED BY 50 TO 100 BASIS POINTS AT THE REPRICING YIELDS NOW RANGE FROM 240 IN 1994 TO 550 IN 2010 AND 2011 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA SUFFOLK COUNTY NY 190 MILLION 1993 SERIES D E F AND G PUBLIC IMPROVEMENT REFUNDING BONDS HAVE BEEN PRICED BY A DILLON READ & CO GROUP THE 137 MILLION SERIES D BONDS WERE PRICED TO YIELD FROM 250 IN 1994 TO 510 IN 2006 THE 46 MILLION SERIES E BONDS YIELD FROM 250 IN 1994 TO 490 IN 2004 YIELDS FOR THE 918 MILLION SERIES F BONDS RANGE FROM 250 IN 1994 TO 550 IN 2013 AND 2014 YIELDS FOR THE 798 MILLION SERIES G BONDS RANGE FROM 225 IN 1994 TO 550 IN 201320 ALL OF THE BONDS ARE GENERAL OBLIGATIONS OF SUFFOLK COUNTY THE FINANCIAL GUARANTY INSURANCE CO HAS INSURED THE SERIES D E AND F BONDS AND THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE SERIES G BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND ALSO CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY ORANGE COUNTY CALIF 11 BILLION SENIORLIEN TOLL ROAD REVENUE BONDS HAVE BEEN REPRICED BY A FIRST BOSTON CORP GROUP AT THE REPRICING YIELDS FOR THE 7657 MILLION CURRENTINTEREST BONDS WERE LOWERED THREE TO SEVEN BASIS POINTS DUE TO STRONG DEMAND THOSE BONDS ARE NOW PRICED TO YIELD 712 IN 2030 697 IN 2032 AND 688 IN 2033 THE OFFERING ALSO INCLUDES 1524 MILLION ZEROCOUPON BONDS WHICH WERE PRICED TO YIELD TO MATURITY FROM 680 IN 2000 TO 775 IN 201629 THE BALANCE OF THE ISSUE COMPRISES 150 MILLION CONVERTIBLE ZEROCOUPON BONDS WHICH HAVE A CONVERSION DATE OF JAN 1 2002 THOSE SECURITIES HAVE BEEN PRICED TO YIELD TO MATURITY FROM 730 IN 2004 TO 770 IN 2014 AND 2015 THE CONVERTIBLE BONDS WILL BE ZEROCOUPON SECURITIES UNTIL THEIR CONVERSION DATE AND THEN THEY WILL BECOME FIXEDRATE BONDS FITCH INVESTORS SERVICE INC HAS RATED THE SENIORLIEN BONDS TRIPLEB SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY CALIF 106 MILLION JUNIORLIEN TOLL ROAD REVENUE BONDS HAVE BEEN PRICED BY A FIRST BOSTON CORP GROUP THE SECURITIES ARE PART OF THE AGENCY'S 12 BILLION OFFERING WHICH IS THE SECONDLARGEST ISSUE PRICED THIS YEAR IN THE MUNICIPAL BOND MARKET THE JUNIORLIEN BONDS ARE ZEROCOUPON SECURITIES THAT ARE NONCALLABLE THEY HAVE BEEN PRICED TO YIELD TO MATURITY FROM 800 IN 2001 TO 900 IN 202629 NONE OF THE MAJOR RATING AGENCIES HAS RATED THE JUNIORLIEN BONDS PORT AUTHORITY OF NEW YORK AND NEW JERSEY 100 MILLION REVENUE BONDS WERE APPARENTLY WON BY A MERRILL LYNCH CAPITAL MARKETS GROUP YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 515 IN 2008 TO 538 IN 2028 THIS ISSUE WAS RATED DOUBLEAMINUS BY S&P AND FITCH INVESTOR SERVICE INC AND SINGLEA1 BY MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES GOLD 1492 IS BACKED BY FREDDIE MAC GOLD 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 863 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES MARCH 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 199344 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 350 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199343 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES 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 FEDERAL HOME LOAN MORTGAGE CORP 310 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1491 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1493 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL HOME LOAN MORTGAGE CORP 750 MILLION ISSUE OF GOLD MACS MODIFIABLE AND COMBINABLE SECURITIES HAS BEEN PRICED BY SEVEN UNDERWRITERS THE OFFERING GOLD MACS 148 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE ISSUE SETTLES APRIL 30 THE UNDERWRITERS ARE BEAR STEARNS & CO GOLDMAN SACHS & CO LEHMAN BROTHERS MERRILL LYNCH & CO MORGAN STANLEY & CO PRUDENTIAL SECURITIES AND SALOMON BROTHERS DELMARVA POWER & LIGHT CO AN OFFERING OF 29 MILLION COMMON SHARES WAS PRICED AT 23875 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TIDE WEST OIL CO OFFERING OF THREE MILLION COMMON SHARES WAS PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC BANK OF GREECE SOVEREIGN ONE BILLION MARKS OF 7 3/4 EUROBONDS AT ISSUE PRICE 10160 DUE APRIL 15 1998 VIA COMMERZBANK AG RECOMMENDED REOFFER PRICE 9985 TO YIELD 7787 ANNUALLY SPREAD 156 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE FEES 2 CAISSE FRANCAISE DE DEVELOPPEMENT FRANCE AGENCY 330 MILLION OF 6 1/4 EUROBONDS DUE APRIL 1 2005 AT REOFFER PRICE 9977 VIA UBS PHILLIPS AND DREW SECURITIES LTD AND CREDIT LYONNAIS EUROSECURITIES LTD YIELD AT REOFFER PRICE 626 MARGIN 30 BASIS POINTS OVER THE 10YEAR US TREASURY NOTE GUARANTOR REPUBLIC OF FRANCE FEES 035 EUROPEAN INVESTMENT BANK SUPRANATIONAL 200 MILLION CANADIAN OF 7 1/4 EUROBONDS AT ISSUE PRICE 102405 VIA JP MORGAN SECURITIES LTD REOFFERED TO INVESTORS AT 10078 TO YIELD 705 MARGIN 30 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE NOTES WILL TRADE INTERCHANGEABLY WITH C200 MILLION IDENTICAL OUTSTANDING BONDS FEES 1 7/8 FINANCE FOR DANISH INDUSTRY AS DENMARK AGENCY 300 MILLION DANISH KRONA OF 9 3/8 EUROBONDS DUE APRIL 7 1997 AT ISSUE PRICE 10170 VIA DEN DANSKE BANK OF 1871 AS YIELD AFTER DEDUCTING FEES 938 FEES 1 5/8 EUROPEAN INVESTMENT BANK EIB SUPRANATIONAL 300 MILLION SWISS FRANCS OF 4 1/2 PUBLIC BONDS DUE APR 6 1999 PRICED AT 102 1/8 VIA CREDIT SUISSE FEES TOTAL 1 3/4 POINTS AN OFFERING OF 29 MILLION COMMON SHARES OF DELMARVA POWER & LIGHT CO WAS PRICED AT 23375 A SHARE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO IN THURSDAY'S NEW SECURITIES ISSUES COLUMN IT WAS INCORRECTLY STATED THAT THE SHARES WERE PRICED AT 23875 EACH 9303040004 930304 ECONOMY LATE PAYMENTS ON HOME MORTGAGES TUMBLED DURING THE FOURTH QUARTER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LATE PAYMENTS ON RESIDENTIAL MORTGAGES DROPPED SHARPLY IN THE FOURTH QUARTER TO THEIR LOWEST LEVEL IN 18 YEARS REFLECTING A STRONGER HOUSING MARKET AND A SURGE IN MORTGAGE REFINANCING OVER THE PAST YEAR INSTALLMENTS PAST DUE 30 DAYS OR MORE ON ONETOFOURUNIT RESIDENTIAL MORTGAGES FELL TO 424 OF ALL SUCH LOANS FROM 460 IN THE THIRD QUARTER THE LOWEST LEVEL SINCE THE FOURTH QUARTER OF 1974 AND THE STEEPEST DROP IN MORE THAN A YEAR ACCORDING TO A REGULAR QUARTERLY SURVEY BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA THE DELINQUENCIES HAVE BEEN FALLING NATIONWIDE SINCE THE SECOND QUARTER OF LAST YEAR AND WERE DOWN MORE THAN A PERCENTAGE POINT FROM THE RECESSIONARY PEAK OF 526 IN THE SECOND QUARTER OF 1991 OFFICIALS OF THE MORTGAGE BANKERS' TRADE GROUP SAID DELINQUENCIES SHOULD STAY LOW AND PERHAPS DECLINE SOMEWHAT MORE THIS YEAR IT'S A GOOD SIGN FOR THE ECONOMY SAID MARK M ZANDI CHIEF ECONOMIST AT REGIONAL FINANCIAL ASSOCIATES INC A WEST CHESTER PABASED CONSULTING FIRM IT INDICATES THAT THE HOUSEHOLD SECTOR HAS PUT ITS BALANCE SHEET IN ORDER AND WE ARE SOON GOING TO SEE THE BENEFITS OF THAT IN THE FORM OF HIGHER CONSUMER SPENDING THE FOURTHQUARTER DELINQUENCIES FELL IN EVERY REGION OF THE COUNTRY EXCEPT THE NORTHEAST WHERE THEY ROSE ONEFIFTH OF A PERCENTAGE POINT AMID CONTINUED ECONOMIC SLUGGISHNESS ALTHOUGH DELINQUENCIES IN THE WEST ALSO DECLINED RECESSIONSTRICKEN CALIFORNIA REMAINS SO WEAK THAT LOANS IN FORECLOSURE JUMPED 63 FROM THE PREVIOUS YEAR REFLECTIVE OF PROBLEMS ON THE TWO COASTS THE PERCENTAGE OF NEW FORECLOSURES DURING THE QUARTER ROSE TO 034 OF ALL LOANS FROM 033 IN THE THIRD QUARTER WHILE OVERALL LOANS IN FORECLOSURE DROPPED SLIGHTLY TO 102 FROM 104 ANALYSTS ATTRIBUTED MUCH OF THE DECREASE IN LATE PAYMENTS TO HOMEOWNERS' ABILITY TO REFINANCE TO A MORE AFFORDABLE MORTGAGE PEOPLE'S PAYMENTS HAVE DROPPED AND THEY ARE MORE ABLE TO MAKE THEIR PAYMENTS SAID HERBERT B TASKER PRESIDENT OF THE WASHINGTONBASED TRADE GROUP AND CHAIRMAN OF ALL PACIFIC MORTGAGE CO IN CONCORD CALIF ABOUT A TRILLION DOLLARS IN MORTGAGES HAVE BEEN REFINANCED OVER THE PAST TWO YEARS OFFICIALS AT THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE BIG BUYER OF MORTGAGES KNOWN AS FANNIE MAE SAID 27 OF THEIR PORTFOLIO OF 129 BILLION IN RESIDENTIAL MORTGAGES WAS REFINANCED OR PREPAID LAST YEAR WHEN THEY REFINANCED LOANS COME BACK ON THE BOOKS THEY ARE COMING BACK CURRENT SAID PAUL PAQUIN A FANNIE MAE SENIOR VICE PRESIDENT THE HIGH REFINANCING VOLUME HAS CONTINUED INTO THIS YEAR AS 30YEAR FIXEDRATE MORTGAGES HAVE FALLEN TO A 20YEAR LOW OF BELOW 8 COUNTRYWIDE CREDIT INDUSTRIES INC THE BIG MORTGAGE BANKER BASED IN PASADENA CALIF FOR INSTANCE SAID ITS PIPELINE OF LOANSINPROCESS TOTALED 59 BILLION AT THE END OF FEBRUARY UP FROM 44 BILLION AT THE SAME TIME LAST YEAR COUNTRYWIDE SAID REFINANCINGS REPRESENT 71 OF TOTAL FUNDINGS ANOTHER REASON DELINQUENCIES HAVE BEEN SUBSIDING IS THAT A FLOOD OF FIRSTTIME BUYERS ENTERING THE MARKET LAST YEAR ENABLED PINCHED HOMEOWNERS TO SELL AND GET OUT FROM UNDER BURDENSOME PAYMENTS MAYBE THIS REFLECTS NOT ONLY A BETTER ECONOMY OVERALL BUT THAT THERE ARE MORE PEOPLE ABLE TO COME INTO THE HOUSING MARKET THAN BEFORE AND GENERATE SOME FORCE SAID BRIAN BRAGG EDITOR OF US HOUSING MARKETS AN INDUSTRY PUBLICATION OF LIVONIA MICHBASED LOMAS MORTGAGE USA FINALLY ANALYSTS SAID RISING HOME PRICES IN MOST AREAS OF THE COUNTRY EXCEPT CALIFORNIA AND THE NORTHEAST HAVE INCREASED HOMEOWNERS' EQUITY REDUCING THE PROPENSITY FOR LATE PAYMENTS HOMEOWNERS ARE FAR MORE LIKELY TO STOP MAKING PAYMENTS IF THEIR EQUITY HAS BEEN WIPED OUT BY FALLING VALUES 9303040003 930304 WEDNESDAY'S MARKETS BONDS SURGE IN OPTIMISM OVER DEFICIT STOCKS GAIN SLIGHTLY IN VOLATILE TRADING DOLLAR CLOSES MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SURGED STILL HIGHER AS INVESTORS CONTINUED TO BET ON REDUCTIONS IN THE FEDERAL BUDGET DEFICIT THE STOCK MARKET WAS BUOYED BY THE BOND RALLY BUT TRADING WAS VOLATILE AND PRICES POSTED ONLY MODEST GAINS THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 351 POINTS TO 340404 STANDARD & POOR'S 500STOCK INDEX ROSE 136 TO 44926 JUST SHY OF ITS ALLTIME HIGH OF 44956 THE NASDAQ COMPOSITE INDEX CLIMBED 620 TO 68392 RISING BOND PRICES PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE TO 678 THE LOWEST LEVEL SINCE THE GOVERNMENT STARTED REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 GAIL DUDACK MARKET STRATEGIST AT SG WARBURG SAID THE BOND MARKET HAS OVERCOME A SERIES OF POSSIBLE PITFALLS THAT HAD THREATENED TO DRIVE INTEREST RATES HIGHER SHE SAID INVESTORS HAD LONG FEARED A RESURGENCE OF INFLATION AS WELL AS THE EFFECTS OF STRONG DEMANDS FOR CAPITAL AROUND THE GLOBE BUT THOSE FEARS ARE FADING NOW AS THE GLOBAL ECONOMY REMAINS WEAK AND INFLATION SUBDUED EVEN LINGERING CONCERNS THAT THE FEDERAL BUDGET DEFICIT WOULD CONTINUE TO BALLOON ARE BEGINNING TO EASE SHE SAID WE'RE SEEING MORE FAITH THAT THE DEFICIT PROBLEM WILL BE DEALT WITH MS DUDACK SAID PEOPLE ARE BEGINNING TO BELIEVE THE UPWARD TREND IN THE DEFICIT HAS PEAKED THE DECLINE IN INTEREST RATES CONTINUES TO BUILD A GOOD ENVIRONMENT FOR STOCKS MS DUDACK SAID SHE PREDICTS THE S&P 500 WILL CLIMB TO 485 AND THE DOW INDUSTRIALS TO 3750 WITHIN THE NEXT THREE MONTHS BUT WILLIAM C MATTISON JR PRESIDENT OF GERARD KLAUER MATTISON SAID STOCK MARKET TRADING IS BECOMING INCREASINGLY NERVOUS HE NOTED THAT LOW RATES AND RECORD LEVELS OF MONEY POURING INTO STOCKS CONTINUE TO SUPPORT PRICES BUT HE SAID TRADERS ARE GETTING EDGY WAITING FOR FIRSTQUARTER EARNINGS TO JUSTIFY THE HIGH LEVEL OF STOCK PRICES MOST PROFIT REPORTS WON'T BE RELEASED FOR AT LEAST ANOTHER MONTH AND MR MATTISON EXPECTS TRADING TO BE VOLATILE UNTIL THEN THE MARKET TRADES ON TWO THINGS INTEREST RATES AND EARNINGS HE SAID RIGHT NOW THE MISSING INGREDIENT IS EARNINGS MR MATTISON EXPECTS THOSE PROFIT FIGURES TO DETERMINE THE MARKET'S NEXT PHASE IF THE EARNINGS NUMBERS LOOK GOOD THEN YOU'LL HAVE PEOPLE SAYING THE DOW INDUSTRIALS ARE GOING TO 4000 AND IT'LL BE A CREDITABLE CASE MR MATTISON SAID BUT IF WE GET A SERIES OF EARNINGS ANNOUNCEMENTS THAT ARE JUST OK OR WORSE PEOPLE WILL WANT TO LIGHTEN UP ON STOCKS AND YOU'LL GET A SITUATION WHERE 50 GUYS ARE TRYING TO RUSH THROUGH A REVOLVING DOOR WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 039 TO 9644 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2723 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1296 ISSUES ROSE AND 632 FELL BOND PRICES SURGED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE THREEQUARTERS OF A POINT OR 750 FOR EACH 1000 FACE AMOUNT TO YIELD 678 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16458 MARKS AND 11665 YEN COMPARED WITH 16395 MARKS AND 11760 YEN TUESDAY 9303040002 930304 BUSINESS BRIEF CHEMICAL BANKING CORP BANK DIRECTORS RECOMMEND ELIMINATING STAGGERED TERMS DIRECTORS OF CHEMICAL BANKING CORP RECOMMENDED ELIMINATING THEIR STAGGERED TERMS IN FAVOR OF ANNUAL ELECTIONS THE PROPOSAL UNDER CONSIDERATION BY MANAGEMENT SINCE LAST YEAR WILL BE SUBMITTED FOR SHAREHOLDER APPROVAL AT THE NEW YORK BANK'S MAY 18 ANNUAL MEETING A CHEMICAL SPOKESMAN SAID THAT THE BANK NO LONGER SAW A NEED FOR STAGGERED TERMS NOW THAT IT HAS BEEN STRENGTHENED BY THE 1991 MERGER OF CHEMICAL AND MANUFACTURERS HANOVER CORP STAGGERED TERMS FREQUENTLY HAVE BEEN ADOPTED AS A TAKEOVER DEFENSE IF APPROVED THE NEW SYSTEM WILL BECOME EFFECTIVE AT THE 1994 ANNUAL MEETING THE PLAN FOLLOWS THE PRACTICE OF MANUFACTURERS HANOVER WHICH ANNUALLY ELECTED DIRECTORS BEFORE IT MERGED WITH CHEMICAL AND SWITCHED TO THE CHEMICAL PRACTICE OF ELECTING THREE CLASSES OF DIRECTORS FOR STAGGERED TERMS CHEMICAL BANKING CORP'S BOARD RECOMMENDED THAT STAGGERED TERMS FOR DIRECTORS BE ELIMINATED IN FAVOR OF ANNUAL ELECTIONS AS A RESULT SHAREHOLDER ACTIVIST EVELYN Y DAVIS AGREED TO WITHDRAW HER PROPOSAL FOR SUCH A CHANGE AN ARTICLE YESTERDAY OMITTED MS DAVIS'S DECISION 9303040148 930219 WHAT'S WRONG WITH HEAD START BY JOHN HOOD HEAD START CREATED DURING THE 1960S' WAR ON POVERTY IS PROBABLY THE MOST POPULAR SOCIAL PROGRAM OF THE PAST QUARTERCENTURY EVERYONE HAS SUNG ITS PRAISES LIBERAL DEMOCRATS CONSERVATIVE REPUBLICANS GOVERNORS DOGOODERS BUSINESS EXECUTIVES EDUCATORS AND NOW PRESIDENT CLINTON LEADS THE CHOIR WE ALL KNOW THAT HEAD START IS A SUCCESS STORY HE SAID IN HIS ADDRESS TO CONGRESS WEDNESDAY LIKE MR CLINTON EVERY OTHER PRESIDENT SINCE LBJ HAS SOUGHT MORE MONEY FOR HEAD START REPUBLICANS REAGAN AND BUSH WERE NO EXCEPTION FROM 1981 TO 1992 HEAD START SPENDING ROSE BY ABOUT 70 IN REAL DOLLARS TO MORE THAN 2 BILLION LAST YEAR THE LOGIC BEHIND HEAD START IS SIMPLE PRESCHOOL CHILDREN WHO ARE AT RISK LIVING IN POOR TROUBLED FAMILIES NEED SPECIAL ATTENTION TO HELP THEM SUCCEED LATER IN SCHOOL AND LIFE BY INVESTING SOME MONEY NOW THE ARGUMENT GOES GOVERNMENT WILL SAVE MONEY IN THE LONG RUN BY HEADING OFF SOCIAL PROBLEMS SCHOOL FAILURE DELINQUENCY TEEN PREGNANCY WELFARE DEPENDENCY THAT CONSUME A GREAT DEAL OF PUBLIC ATTENTION AND RESOURCES THE ACTUAL RATIOS CLAIMED BY HEAD START BOOSTERS VARY FROM 3 TO 6 SAVED FOR EVERY 1 INVESTED IN THE PROGRAM BY ANY INVESTOR'S STANDARDS THAT'S AN ENORMOUS RATE OF RETURN UNFORTUNATELY THE SIMPLE LOGIC BEHIND HEAD START IS ALSO SIMPLISTIC THE RESEARCH BASIS DOESN'T EXIST TO SUPPORT CLAIMS OF LONGTERM BENEFITS FROM HEAD START OR IN FACT FROM MOST OTHER PRESCHOOL PROGRAMS THERE IS SOME EVIDENCE THAT A FEW EXTRAORDINARY PRESCHOOL PROGRAMS SUCH AS THE FAMOUS PERRY PRESCHOOL IN YPSILANTI MICH DO HAVE SOME LONGTERM BENEFITS ALBEIT FEWER THAN GRANDIOSE PUBLIC INVESTMENT CLAIMS WOULD SUGGEST BUT IT IS WRONG TO ASSUME THAT THE BENEFITS ARE AUTOMATIC A 1985 ANALYSIS BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOUND THAT AMBITIOUS CLAIMS FOR HEAD START'S LONGTERM EFFECTS WERE EXAGGERATED CHILDREN ENROLLED IN HEAD START ENJOY SIGNIFICANT IMMEDIATE GAINS IN COGNITIVE TEST SCORES SOCIOEMOTIONAL TEST SCORES AND HEALTH STATUS THE HHS REPORT NOTED BUT IN THE LONG RUN COGNITIVE AND SOCIOEMOTIONAL TEST SCORES OF FORMER HEAD START STUDENTS DO NOT REMAIN SUPERIOR TO THOSE OF DISADVANTAGED CHILDREN WHO DID NOT ATTEND HEAD START MORE RECENT RESEARCH CONFIRMS THAT CONCLUSION SHORTTERM GAINS IN INTELLIGENCE SCORES AND LEARNING SKILLS DISAPPEAR FOR MOST HEAD START STUDENTS AFTER TWO YEARS AT SCHOOL EQUALLY IMPORTANT IT'S IMPOSSIBLE TO JUDGE THE MOST CRUCIAL FACTOR IN THE SUCCESS OR FAILURE OF A PRESCHOOL THE RELATIONSHIP BETWEEN CARE PROVIDER AND CHILD JEROME KAGAN A HARVARD DEVELOPMENTAL PSYCHOLOGIST SAYS THAT EARLYCHILDHOOD PROGRAMS HAVE TRADITIONALLY BEEN SPELLED OUT LIKE RECIPES ADMINISTER THE TREATMENT MEASURE THE OUTCOME BUT THE PROVIDERCHILD RELATIONSHIP IS MORE IMPORTANT AND WE RESEARCHERS DON'T KNOW HOW TO MEASURE RELATIONSHIPS TO TRANSLATE THESE FINDINGS INTO COMMONSENSE LANGUAGE IF A KID ATTENDS BAD SCHOOLS LIVES IN POVERTY AND HAS LITTLE OR NO FAMILY SUPPORT FOR 18 YEARS A COUPLE OF YEARS OF PRESCHOOL AREN'T GOING TO MAKE A LOT OF DIFFERENCE SCHOOLS FAIL BECAUSE THEY ARE POORLY ORGANIZED NOT BECAUSE THEIR PUPILS DID NOT ATTEND PRESCHOOL FAMILIES FAIL BECAUSE OF A MULTITUDE OF PROBLEMS OFTEN CREATED BY POOR CHOICES OR IMMORALITY NO MATTER HOW MUCH WE MAY WANT TO FIND A QUICK FIX THERE IS NO SUBSTITUTE FOR FIXING SCHOOLS AND REBUILDING FAMILIES NO SUPPLEMENTAL PROGRAM CAN TAKE THE PLACE OF THOSE TWO ALLIMPORTANT INSTITUTIONS MANY HEAD START BOOSTERS UNDERSTAND THE PROGRAM'S LIMITATIONS AND EVEN THOSE RESEARCHERS WHO FIND HEAD START LACKING GENERALLY REMAIN COMMITTED TO THE PROGRAM THEY JUST CALL FOR MORE FUNDING AND FOR HEAD STARTLIKE PROGRAMS TO BE CARRIED ON THROUGHOUT THE ELEMENTARY AND JUNIORHIGH YEARS OF COURSE THIS LINE OF ARGUMENT IMPLICITLY GRANTS THAT GETTING CHILDREN READY TO LEARN ISN'T ENOUGH AND THAT HEAD START'S COMPARATIVELY SMALL BUDGET IS INSUFFICIENT TO PRODUCE THE PROMISED SOCIAL BENEFITS SUPPORT FOR HEAD START VERY QUICKLY COLLAPSES INTO A GENERAL CALL FOR A LARGER MORE COSTLY THERAPEUTIC STATE THE CHILDREN'S DEFENSE FUND FOR EXAMPLE WHOSE BOARD BOTH HILLARY CLINTON AND HHS SECRETARY DONNA SHALALA USED TO HEAD ADVOCATES FEDERAL SPENDING ON HEAD START AND OTHER PRESCHOOL AND DAYCARE OPTIONS ONLY AS PART OF A BROADER AGENDA INCLUDING HEFTY INCREASES IN FEDERAL SPENDING IN VIRTUALLY EVERY CATEGORY MORE REGULATIONS NATIONAL HEALTH INSURANCE ETC TO DISPROVE THE WIDER CLAIMS ABOUT THE HEAD START SILVER BULLET IS NOT OF COURSE TO QUESTION THE IMMEDIATE GAINS CHILDREN MAKE WHEN THEY ARE CARED FOR STIMULATED AND WELLFED INDEED THE RELEVANT RESEARCH SHOWS THAT IT'S THE HEALTH AND NUTRITIONAL COMPONENTS OF HEAD START THAT PROVIDE THE GREATEST BENEFITS BUT SURELY THOSE CRUCIAL NEEDS CAN BE MET IN A LESS COSTLY WAY IF WE'RE ALL GOING TO BE GOOD PUBLIC INVESTORS WE HAVE TO EXAMINE THE RATE OF RETURN OF VARIOUS OPTIONS HEAD START VS SCHOOL VOUCHERS FOR EXAMPLE AND SET PRIORITIES THE FEDERAL HEAD START BUDGET FOR 1992 COULD HAVE FUNDED 2000 VOUCHERS FOR MORE THAN A MILLION SCHOOLCHILDREN FOR INSTANCE THAT MIGHT WELL BE A MORE PRODUCTIVE USE OF FEDERAL MONEY WELFARE REFORM MIGHT BE ANOTHER WISCONSIN'S LEARNFARE PROGRAM WHICH PUTS PRESSURE ON WELFARE MOTHERS TO KEEP THEIR KIDS IN SCHOOL HAS SIGNIFICANTLY IMPROVED ATTENDANCE FOR A THIRD OF THE CHILDREN IN THE PROGRAM THAT'S AN EXCEPTIONALLY GOOD SUCCESS RATE MR CLINTON WAS AN EARLY AND EMOTIONAL CONVERT TO THE HEAD START CAUSE IN A 1988 SPEECH HE PROCLAIMED THAT THE MOST IMPORTANT ECONOMIC ISSUE FACING THIS COUNTRY IN THE FUTURE IS WHAT WILL HAPPEN TO ALL THESE POOR KIDS BY THE TIME THEY ARE FIVE YEARS OLD SO MANY OF THEM ARE SHOWING UP IN KINDERGARTEN AND THE BALLGAME'S ALREADY OVER DON'T YOU BELIEVE IT MR PRESIDENT A COMBINATION OF RADICAL SCHOOL REFORM WELFARE REFORM TOUGH LAW ENFORCEMENT AND CONSCIENTIOUS EFFORTS BY PARENTS TEACHERS CHURCHES AND COMMUNITIES CAN MAKE A DIFFERENCE IN THE LIVES OF THOSE CHILDREN IMPLEMENTING REAL CHANGE RATHER THAN EMULATING HIS PREDECESSORS IS THE ONLY WAY PRESIDENT CLINTON CAN MAKE A DIFFERENCE MR HOOD IS RESEARCH DIRECTOR OF THE JOHN LOCKE FOUNDATION IN RALEIGH NC AND AUTHOR OF A RECENT CATO INSTITUTE STUDY ON HEAD START SEE RELATED LETTERS LETTERS TO THE EDITOR PRESCHOOLERS HUNGER FOR WORDS WSJ MARCH 3 1993 9302190152 9303040135 930211 REVIEW & OUTLOOK EDITORIAL ASIDES OUTDOORSMAN OR OUT OF IT BRUCE BABBITT STRUCK SOME PEOPLE DURING THE 1988 CAMPAIGN AS A STANDUP GUY EITHER HE'S LEARNED HOW TO DUCK OR HE HASN'T BEEN DOING MUCH READING SINCE HE LEFT PUBLIC OFFICE SIX YEARS AGO DURING HIS CONFIRMATION HEARING TO BE INTERIOR SECRETARY HE WAS ASKED BY SENATOR MALCOLM WALLOP WHAT HE THOUGHT ABOUT THE TAKINGS CLAUSE OF THE 14TH AMENDMENT NOW FREQUENTLY CITED IN LANDUSE CASES MR BABBITT REPLIED HE WAS NOT FAMILIAR WITH IT WE TRUST THIS AVOWED ENVIRONMENTALIST WILL BE INTRODUCED TO THE CONSTITUTIONAL PROTECTION IN SHORT ORDER SEE RELATED LETTER LETTERS TO THE EDITOR TAKINGS CLAUSE WSJ MARCH 3 1993 9302110012 9303040080 930201 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303040069 930216 LEISURE & ARTS BOOKSHELF BREAKTHROUGH OR BUNK BY DAVID P HAMILTON FUZZY LOGIC MAY NOT ALWAYS BE THE SAME THING AS FUZZY THINKING BUT ATTEMPTS TO DESCRIBE IT USUALLY ARE THAT'S A PROBLEM NOT JUST FOR FUZZY'S BACKERS WHO CLAIM THAT THEIR THEORY IS THE KEY TO THE NEXT GENERATION OF ADVANCED COMPUTERS AND OTHER ELECTRONIC DEVICES BUT ALSO FOR ANYONE WHO WANTS TO TRY TO UNDERSTAND WHAT THEY'RE TALKING ABOUT THE EFFORT IS CLEARLY WORTH MAKING SINCE IF FUZZY LOGIC A SYSTEM OF REASONING THAT ALLEGEDLY LETS COMPUTERS ACT ON VAGUE AND INCOMPLETE INFORMATION AS PEOPLE DO IS REALLY THE BREAKTHROUGH ITS ADVOCATES CLAIM IT COULD MAKE POSSIBLE SMARTER HOUSEHOLD APPLIANCES ADVANCED INDUSTRIAL CONTROL SYSTEMS AND EVEN NEW FORMS OF ARTIFICIAL INTELLIGENCE JUST TO CRANK UP AMERICANS' ANXIETY LEVEL A BIT FUZZY'S PROPONENTS ALSO USUALLY LIKE TO POINT OUT THAT FUZZY LOGIC IS DOMINATED BY JAPANESE INDUSTRY WHICH IS BUSY INCORPORATING IT INTO THE WASHING MACHINES RICE COOKERS VACUUM CLEANERS AND TELEVISION SETS OF THE FUTURE MAINSTREAM US SCIENTISTS HOWEVER HAVE GENERALLY TREATED THE CLAIMS OF FUZZY ADVOCATES WITH THE DISDAIN THEY USUALLY RESERVE FOR CREATIONISTS PSYCHICS AND INVENTORS OF PERPETUALMOTION MACHINES THEY'VE TENDED TO DERIDE FUZZY LOGIC EITHER AS A SNAZZY LABEL FOR CONVENTIONAL COMPUTING AND CONTROL METHODS OR AS A COLLECTION OF HAZY NOTIONS THAT LACK A FIRM MATHEMATICAL FOUNDATION A BOOK THAT SORTS THROUGH THE COMPETING FUZZY CLAIMS WOULD BE A BIG HELP UNFORTUNATELY FUZZY THINKING ABOUT FUZZY LOGIC IS ABOUT ALL THAT DANIEL MCNEILL AND PAUL FREIBERGER HAVE MANAGED TO CONTRIBUTE TO THE SUBJECT WITH FUZZY LOGIC SIMON & SCHUSTER 319 PAGES 22 INSTEAD OF WEIGHING THE COMPETING CLAIMS OF FUZZY'S ADVOCATES AND ITS ENEMIES IN ORDER TO EXPLAIN JUST WHAT FUZZY LOGIC CAN AND CAN'T DO THE AUTHORS HAVE WRITTEN A CHEERLEADING MANUAL FOR THE FUZZY LOGIC BOOSTER CLUB AND A PECULIARLY UNCONVINCING ONE AT THAT IN FACT THE SLOPPINESS WITH WHICH MESSRS MCNEILL AND FREIBERGER WHO HAVE BOTH WRITTEN EXTENSIVELY ABOUT HIGH TECHNOLOGY MAKE THEIR CASE IS STRIKING ON PAGE AFTER PAGE THE AUTHORS SQUANDER THEIR CREDIBILITY BY MAKING THEIR FUZZYLOGIC HEROES LARGER THAN LIFE DEMONIZING THE THEORY'S OPPONENTS AND ACCEPTING UNSUPPORTED ASSERTIONS BY FUZZYLOGIC SUPPORTERS AS FACT MUCH OF FUZZY LOGIC READS LIKE A CASE STUDY IN HOW NOT TO RELY ON AUTHORITY START WITH THE WAY THE AUTHORS LIONIZE LOTFI ZADEH THE PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WHO LAID MUCH OF FUZZY LOGIC'S INTELLECTUAL FOUNDATION HERALDED BY THE AUTHORS AS PART COLUMBUS BUT ALSO PART CORONADO FRANKLIN AND WASHINGTON FOR HIS CONTRIBUTIONS TO FUZZY THEORY DR ZADEH CONTINUES TO POP UP THROUGHOUT THE TEXT WITH UNQUESTIONED AND UNVERIFIED AND IN MANY CASES UNVERIFIABLE OBSERVATIONS ABOUT FUZZY LOGIC'S PLACE IN THE WORLD HOW FAR AHEAD IS JAPAN IN FUZZY LOGIC ABOUT FIVE TO SIX YEARS DR ZADEH ESTIMATES AND THE DISTANCE IS GROWING EVERY DAY IS THE SUBWAY IN THE JAPANESE CITY OF SENDAI WHICH USES A CONTROLLER BASED ON FUZZY LOGIC SAFE THEY'VE NEVER HAD A MISHAP DR ZADEH ASSURES US IT SEEMS ANYONE WHO IS SYMPATHETIC TO FUZZY HAS THE AUTHORS' EARS THUS WE ALSO HEAR FROM UNIVERSITY OF SOUTHERN CALIFORNIA PROF BART KOSKO WHO CLAIMS AGAIN WITH NO PROOF THAT A FUZZYLOGIC ALGORITHM HE'S DEVELOPED COULD HAVE GUIDED PATRIOT MISSILES WITH GREATER ACCURACY AND THEREFORE SAVED LIVES DURING THE GULF WAR THE AUTHORS ACCEPT AT FACE VALUE THE PRONOUNCEMENTS OF WANG PEIZHUANG A CHINESE FUZZY SCIENTIST WHO DESCRIBES CHINA'S FUZZY WEATHERPREDICTION SYSTEMS AS HIGHLY ACCURATE AND SAYS THAT ONE DAY CHINA WILL BE THE MOST DEVELOPED NATION IN FUZZY LOGIC MESSRS MCNEILL AND FREIBERGER ALSO DEVELOP SELECTIVE AMNESIA WHEN IT HELPS THEM ADVANCE THEIR CASE IN THE MOST GLARING EXAMPLE THE AUTHORS CATALOG THE AVALANCHE OF JAPANESE PRODUCTS BEARING THE FUZZYLOGIC LABEL INCLUDING A RICE COOKER PRODUCED BY MATSUSHITA ELECTRIC INDUSTRIAL CO THAT CAN COOK RICE TO ANY OF FOUR LEVELS OF TENDERNESS WITH THE SAME AMOUNT OF WATER THEY EVEN QUOTE MATSUSHITA'S GENERAL MANAGER OF RESEARCH PLANNING SAYING SUCH A RICE COOKER IS NOT POSSIBLE WITHOUT FUZZY LOGIC A MERE SIX PAGES LATER THE AUTHORS SUDDENLY ANNOUNCE THAT PUFFERY HAS AFFLICTED THE FIELD OF FUZZYLOGIC APPLIANCES AND DECLARE THAT MATSUSHITA'S RICE COOKER IS USEFUL BUT NOT ESPECIALLY FUZZY EITHER THE AUTHORS DON'T UNDERSTAND THE CONTRADICTION OR THEY DON'T CARE IN FACT THEIR BREATHLESS ACCOUNT OF FUZZY CONSUMER PRODUCTS INVITES THE SUSPICION THAT THEY'RE LESS INTERESTED IN FUZZY LOGIC THAN IN HYPING THE JAPANESE MENACE TO A PRESUMABLY RECEPTIVE AMERICAN AUDIENCE THAT'S A SHAME BECAUSE THERE'S A LOT ABOUT FUZZY LOGIC THAT'S INTRIGUING AND FUZZY LOGIC MANAGES TO OBSCURE MOST OF IT IT CERTAINLY SEEMS NATURAL TO SUGGEST THAT DATA BASES HANDWRITING AND VOICERECOGNITION SYSTEMS AND OTHER COMPUTERS THAT WILL INTERACT WITH HUMAN PERCEPTIONS OF THE REAL WORLD SHOULD BE ABLE TO DEAL WITH THE SAME IMPRECISE CONCEPTS THAT WE DO LIKEWISE CONTROL ENGINEERS WHO CLAIM TO HAVE PUT FUZZY LOGIC TO WORK RUNNING CEMENT KILNS AND WATERPURIFICATION PLANTS ALSO PROBABLY DESERVE A BETTER HEARING THAN THEY'VE RECEIVED SO FAR UNFORTUNATELY THE BOOK THAT PUTS SUCH POTENTIAL CONTRIBUTIONS INTO PERSPECTIVE FOR A LAY AUDIENCE REMAINS TO BE WRITTEN MR HAMILTON COVERS TECHNOLOGY IN THE JOURNAL'S TOKYO BUREAU SEE RELATED LETTERS LETTERS TO THE EDITOR WE ASK YOU WHO'S FUZZIER WSJ MARCH 3 1993 9302160108 9303040017 930203 IT'S OK TO BE SINGLE BUT MARRIAGE STILL IS A TOUTED POSSIBILITY MANY OUTFITS ARE ON THE PROWL FOR WAYS TO SERVE MARKET WHETHER IT'S HAPPY OR NOT BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF IT'S FRIDAY NIGHT AND 500 PEOPLE HAVE PAID 10 EACH TO HEAR A MAN IN A MAROON SPORT COAT LECTURE THEM ON HOW TO TELL WHETHER THEY ARE BIMBOS OR JERKS A JERK HE SAYS RIDICULES SAD MOVIES HE LIKES TO KILL THINGS A BIMBO ON THE OTHER HAND IS IMPRESSED BY THE THICKNESS OF A MAN'S WALLET THERE'S NOTHING MORE PATHETIC THAN A 50YEAROLD BIMBO THESE HELPFUL INSIGHTS ARE IN THE KEYNOTE ADDRESS FOR A SINGLES EXPO ONE OF SEVERAL SUCH FAIRS FOR THE UNATTACHED PLANNED THIS YEAR BY AMERICAN SINGLES A NONPROFIT GROUP BASED IN SAN RAFAEL CALIF THE GROUP IS PROMOTING 1993 AS THE YEAR OF THE SINGLE AND IS KICKING OFF ITS YEARLONG CELEBRATION OF SPOUSELESSNESS HERE AT THE HYATT HOTEL THE BALLROOM IS FULL OF COMPANIES ON THE PROWL FOR SINGLE CONSUMERS SELLING GOODS AND SERVICES FROM TANS TO LIMOUSINE RIDES AND FITNESS CRUISES THERE ARE SINGLES GROUPS FOR EVERY NICHE VEGGIEMATES FOR HERBIVORES STARGAZERS FOR ASTROLOGY BUFFS AND UNATTACHED SMOKERS OF AMERICA FOR LONELY NICOTINE FREAKS RICHARD GOSSE THE NEVERMARRIED CHAIRMAN OF AMERICAN SINGLES TEACHES CLASSES ON HOW TO BE HAPPILY SINGLE ODDLY HIS PERSPECTIVE IS A RARITY HERE THE GREAT PARADOX OF THE SINGLES MOVEMENT IS THAT WHILE PEOPLE IN THE BUSINESS TOUT THE JOYS OF BEING SINGLE THEIR SELLING POINT OFTEN IS THAT THEY CAN HELP YOU FIND WEDDED BLISS GREAT EXPECTATIONS A VIDEODATING SERVICE COSPONSORING THE EXPO BOASTS THAT THREE MARRIAGES A DAY ARE CONSUMMATED THROUGH OUR PROGRAM AS JOYCE SATRAN AN ATTENDEE FROM CAMPBELL CALIF PUTS IT WE'RE ALL HERE BECAUSE WE DON'T WANT TO BE SINGLE BUT AMERICAN SINGLES STEADFASTLY ARGUES THAT NOW IS THE BEST TIME IN AMERICAN HISTORY TO BE UNATTACHED A BIGGER PART OF THE ADULT POPULATION 40 IS SINGLE THAN AT ANY TIME IN NEARLY A CENTURY AND AMERICAN SINGLES WANTS TO COMBAT IMPRESSIONS THAT THE SINGLE LIFESTYLE IS CONTRARY TO FAMILY VALUES THAT IF YOU'RE SINGLE SOMETHING'S WRONG WITH YOU SAYS MR GOSSE MOST MARRIAGES ARE LOUSY HE SAYS MARRIED PEOPLE TEND TO BE COUCH POTATOES COOPED UP WITH A SPOUSE WHO DOESN'T KNOW HOW TO COMMUNICATE HE SAYS HE SAYS STUDIES HAVE SHOWN UNMARRIED WOMEN LIVE LONGER HEALTHIER LIVES THAN DO MARRIED WOMEN WHILE THE REVERSE IS TRUE FOR MEN A SPOKESWOMAN AT THE NATIONAL CENTER FOR HEALTH STATISTICS SAYS IN GENERAL MEN SEEM TO REAP MORE BENEFITS FROM MARRIAGE THAN WOMEN DO MR GOSSE SAYS HE TELLS WOMEN HOW LUCKY THEY ARE NOT TO HAVE A MAN STILL MOST EVERYONE HERE IS IN THE RELUCTANTSINGLES CAMP SOMETIMES IT'S GOOD TO BE SINGLE I PROMOTE IT SAYS LILO SELVEN A HYPNOTHERAPIST AND IMAGE CONSULTANT FROM SWITZERLAND WHO OFFERS COURSES THAT HELP BALANCE INNER AND OUTER BEAUTY MS SELVEN HERSELF HAS BEEN CONSCIOUSLY SINGLE FOR TWO YEARS SINCE THE END OF A SECOND MARRIAGE BUT SHE HAS NO INTENTION TO REMAIN THAT WAY I KNOW THERE'S A SOUL MATE FOR ME OTHER WISER IF NOT SADDER ENTREPRENEURIAL WOMEN ARE ALSO HERE PEDDLING SINGLENESSENDING SERVICES JILL SCOTT WITH HER MRS AMERICA BANNER DRAPED OVER HER CHEST DEMONSTRATES ONLINE INTRODUCTIONS A DATING SERVICE THAT HAS CLIENTS SWAP PHOTOS WITH PROSPECTIVE MATES VIA PERSONAL COMPUTER SHORTLY AFTER BECOMING MRS AMERICA OF 1991 SHE EXPLAINS SHE AND HER HUSBAND OF 12 YEARS SPLIT TO KEEP HER CROWN HOWEVER SHE DIDN'T GET A DIVORCE UNTIL HER REIGN WAS AT AN END FINDING IT HARD TO GET BACK INTO THE DATING SCENE SHE JOINED THE COMPUTER SERVICE AND NOW RECOMMENDS IT TO OTHER FORMER MRS AMERICA CONTESTANTS WHO BECAME SINGLE AGAIN AFTER WINNING STATE PAGEANTS AFTER ALL SHE EXPLAINS I DON'T WANT SOMEONE WHO'S ONLY INTERESTED IN ME FOR SUPERFICIAL REASONS LIKE MY TITLE MATCHING SINGLES ISN'T EASY THESE DAYS BECAUSE PEOPLE ARE GETTING INCREASINGLY PICKY GENE SADOFF A FORMER MARKETING MAN FOR HEWLETTPACKARD CO AND TANDEM COMPUTERS DECIDED TO START HIS OWN MATCHMAKING BUSINESS AFTER THE SERVICES HE TRIED KEPT FIXING HIM UP WITH WOMEN TOO OLD OR TOO FAT MR SADOFF WHO CHARGES 49 FOR SIX MONTHS OF MATCHMAKING IS AVAILABLE UNTIL 2 AM FOR AFTERDATE CONSULTATIONS AND COMPLAINTS THE COMPLAINTS HE MOST OFTEN HEARS THE WOMEN ARE TOO FAT AND THE MEN ARE TOO OLD OLDER MEN HAVE PULLED THE SHADE DOWN AND ARE JUST GOING THROUGH THE MOTIONS OF LIFE SAYS SANDY REISHUS 49 HER COMPANY YOUNGER MEN OLDER WOMEN NOW CLAIMS 700 CLIENTS MOST OF THEM MALE MINIMUM AGE FOR MEN 21 FOR WOMEN 35 THE COMPANY'S BROCHURE QUOTES SOME OF BEN FRANKLIN'S REASONS WHY A YOUNG MAN SHOULD MARRY AN OLDER WOMAN BECAUSE THEY HAVE MORE KNOWLEDGE OF THE WORLD AND THEIR MINDS ARE BETTER STORED WITH OBSERVATIONS THEIR CONVERSATION IS MORE IMPROVING AND MORE LASTINGLY AGREEABLE THE BROCHURE OMITS MR FRANKLIN'S FINAL REASON EIGHTH AND LASTLY THEY ARE SO GRATEFUL SOME MATCHMAKERS SAY THAT IT IS TOUGHER FOR SINGLE MEN TODAY BECAUSE WOMEN HAVE RAISED THEIR STANDARDS AND ARE NO LONGER WILLING TO SETTLE FOR A SIMPLE PROVIDER WHICH IS WHERE PACIFIC ROMANCE INC COMES IN IT SELLS A 3995 BOOK FULL OF PICTURES AND ADDRESSES OF WOMEN IN THE PHILIPPINES DON O'BRIEN MANNING THE COMPANY'S BOOTH SMILES AFFECTIONATELY AT HIS FILIPINA WIFE RODILLA THE CULTURE AND TRADITION IN THE PHILIPPINES HE SAYS IS TO PUT THE HUSBAND AND THE FAMILY FIRST AMERICAN MEN FIND THAT ATTRACTIVE LIKE OTHERS IN THE MATING GAME GEORGINA ONG HAS PROFITED PERSONALLY FROM HER BUSINESS HER OUTFIT POSITIVE CONNECTIONS IS A MATCHMAKING SUPPER CLUB THAT CHARGES 1000 FOR A THREEMONTH MEMBERSHIP PLUS UP TO 60 PER DINNER SHE MET HER CURRENT COHABITOR AT ONE OF HER MATCHMAKING DINNERS AND THEN SET UP THE BOYFRIEND SHE THEN DUMPED WITH ANOTHER WOMAN SAYS MS ONG GENEROUSLY I'VE SET UP TWO EXBOYFRIENDS AND MY EXHUSBAND ALL FOR FREE SEE RELATED LETTER LETTERS TO THE EDITOR WISDOM FROM BEN WSJ MARCH 3 1993 9302030203 9303030172 930303 MORGAN STANLEY'S GREENHILL TO STEP DOWN AND MACK WILL SUCCEED HIM AS PRESIDENT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE THAT SURPRISED WALL STREET ROBERT F GREENHILL SAID HE WILL STEP DOWN AS MORGAN STANLEY GROUP INC'S PRESIDENT AND BE SUCCEEDED BY JOHN J MACK SIGNALING THE GROWING POWER OF BOND SALESMEN AND TRADERS AT THE BIG INVESTMENT BANK THE 48YEAROLD MR MACK WHO FOR SIX YEARS HAD RUN MORGAN STANLEY'S BOND OPERATIONS NOW IS FIRMLY IN LINE TO EVENTUALLY HEAD UP THE ENTIRE FIRM FOR THE PAST YEAR MR MACK HAS BEEN MORGAN'S CHIEF OPERATING OFFICER MR GREENHILL 56 WILL BECOME SENIOR ADVISER TO THE FIRM ON INVESTMENTBANKING MATTERS THE NEW ROLES TAKE EFFECT JUNE 10 THE SUDDEN DETHRONING OF MR GREENHILL A VETERAN INVESTMENT BANKER WHO FOUNDED MORGAN STANLEY'S MERGERS DEPARTMENT AND THE QUICK RISE OF MR MACK UNDERSCORE THE POWER SHIFT WITHIN MORGAN A 1980S MERGERS POWERHOUSE WITH THE DECLINE OF CORPORATE TAKEOVERS IN THE PAST THREE YEARS TRADING REVENUE AT MORGAN HAS SURPASSED THAT FROM INVESTMENT BANKING BOND SALES AND TRADING HAVE PLAYED A BIG ROLE IN THE SHIFT AND HELPED LEAD TO MORGAN'S RECORD FISCAL 1992 PROFIT OF 5105 MILLION POWER IS WHERE THE MONEY IS ON WALL STREET SAID SAMUEL HAYES PROFESSOR OF INVESTMENT BANKING AT HARVARD BUSINESS SCHOOL THE APPOINTMENT OF MR MACK SUGGESTS THAT MORGAN STANLEY IS MAKING A LONGERTERM BET ON THE TRADING MARKETS HE SAID MORGAN STANLEY OFFICIALS DENIED THAT THERE HAS BEEN ANY POWER SHIFT THE COMMON ASSUMPTION IS THAT MERGERSANDACQUISITIONS ACTIVITY IS IN PERMANENT DECLINE SAID RICHARD B FISHER MORGAN'S CHAIRMAN WE DON'T BELIEVE THAT SAID MR GREENHILL EVEN IF THE BOND BUSINESS WAS DOWN JOHN WOULD STILL BE IN LINE TO ASSUME THE PRESIDENT'S ROLE HOWEVER IN AN INTERVIEW A YEAR AGO MR GREENHILL WHO WAS NAMED MORGAN'S PRESIDENT IN 1991 SAID HE HAD NO PLANS TO STEP ASIDE SOON INDEED PEOPLE FAMILIAR WITH MORGAN STANLEY SAY MR GREENHILL WAS PRESSURED TO STEP ASIDE BY EXECUTIVES WITHIN THE FIRM WHO COMPLAINED THAT AMONG OTHER THINGS HE SPENT TOO LITTLE TIME IN HIS DUTIES AS PRESIDENT MR MACK WAS AMONG THOSE WHO FAVORED MR GREENHILL'S SHIFT THESE PEOPLE SAID SAID A MORGAN STANLEY SPOKESWOMAN THE DECISION TO FOCUS PURELY ON CLIENT ISSUES WAS BOB'S SHE DECLINED TO COMMENT FURTHER MR MACK WHO WILL RETAIN HIS POST AS CHIEF OPERATING OFFICER IS WIDELY CREDITED ON WALL STREET WITH BUILDING MORGAN'S BOND GROUP INTO A POWERFUL FORCE IN THE SECURITIES BUSINESS I DON'T SEE MY JOB CHANGING A GREAT DEAL MR MACK SAID ISSUES FROM BUDGET TO PERSONNEL TO PLANNING ARE THINGS I REALLY ENJOY DOING MR MACK A LOWKEY NORTH CAROLINIAN BRISTLES AT BEING REFERRED TO AS MACK THE KNIFE BY SOME MORGAN EMPLOYEES A NICKNAME THAT STEMMED FROM PAST COSTCUTTING DRIVES MR MACK POINTS TO HIS RECENT EFFORTS AT BUILDING UP MORGAN'S STAFF NOTING THAT THE FIRM HAS ADDED ABOUT 400 EMPLOYEES WORLDWIDE TO NEARLY 7500 SINCE HE TOOK OVER AS CHIEF OPERATING OFFICER A YEAR AGO UNDER MR MACK'S HELM AS WORLDWIDE HEAD OF MORGAN'S TAXABLE FIXEDINCOME OPERATIONS FROM 1985 TO EARLY 1992 THE FIRM'S BOND REVENUE CLIMBED FIVEFOLD AND ITS BONDGROUP HEAD COUNT JUMPED 75 HE JOINED MORGAN IN 1972 AND WAS NAMED VICE PRESIDENT IN 1976 PRINCIPAL IN 1977 AND MANAGING DIRECTOR IN 1979 MR GREENHILL HAS FREQUENTLY RUFFLED FEATHERS AMONG COLLEAGUES AND OTHERS FOR HIS SOMETIMES ABRASIVE MANNER BUT MR GREENHILL WITH HIS SIGNATURE SUSPENDERS ALSO HAS BEEN A HIGHLY PRODUCTIVE INVESTMENT BANKER HE NOW WILL SPEND MOST OF HIS TIME WORKING WITH KEY CLIENTS AMONG OTHER THINGS MR GREENHILL IS MORGAN'S LEAD BANKER FOR THE ISSUANCE OF RJR NABISCO HOLDINGS INC'S NEWLY CREATED CLASS OF SEPARATE STOCK AND FOR INTERNATIONAL BUSINESS MACHINES CORP'S RESTRUCTURING EFFORTS FOR HIS PART MR GREENHILL SHRUGGED OFF THE CHANGE NOTING THAT HE WILL REMAIN ON MORGAN'S BOARD HE SAYS HE HAD LITTLE TIME FOR CLIENTS WHILE TENDING TO THE ADMINISTRATIVE DUTIES AS THE FIRM'S PRESIDENT IT'S A QUESTION OF WHAT YOU WANT TO DO IN LIFE AND I HAPPEN TO ENJOY INVESTMENT BANKING HE SAID AMONG THE DUTIES HE WON'T MISS IN HIS NEW ROLE HE ADDED IS THAT SO AND SO IS UNHAPPY WITH THEIR COMPENSATION MR GREENHILL JOINED MORGAN IN 1962 AND BECAME A PARTNER IN 1970 IN 1972 HE BECAME THE FIRST CHIEF OF MORGAN'S MERGERS DEPARTMENT AND BECAME HEAD OF INVESTMENT BANKING IN 1980 NAMED VICE CHAIRMAN IN 1989 HE BECAME PRESIDENT TWO YEARS LATER BECAUSE OF THE FIRM'S RECENT HEFTY PROFIT MORGAN'S SENIOR EXECUTIVES HAVE BEEN AMONG THE HIGHEST PAID ON WALL STREET MESSRS FISHER GREENHILL AND MACK EACH RECEIVED 1991 PAY PACKAGES VALUED AT NEARLY 8 MILLION IN 1992 THE THREE EXECUTIVES EACH EARNED CASH AND RESTRICTED MORGAN STANLEY STOCK WITH A CURRENT INDICATED VALUE OF NEARLY 6 MILLION ANALYSTS SAY MORGAN DECLINES TO COMMENT ON COMPENSATION THE PAY OF ITS SENIOR MANAGEMENT WILL BE DISCLOSED IN A PROXY STATEMENT NEXT MONTH 9303030171 930303 FORMER OFFICERS STAFF OF OXFORD CAPITAL FACE CHARGES IN FRAUD CASE NEW YORK LOCAL PROSECUTORS CHARGED 13 FORMER OFFICERS AND EMPLOYEES OF THE DEFUNCT OXFORD CAPITAL SECURITIES INC WITH BILKING INVESTORS OF MORE THAN 10 MILLION AND USING MUCH OF THE MONEY FOR THEIR PERSONAL USE ROBERT M MORGENTHAU THE DISTRICT ATTORNEY FOR MANHATTAN SAID 12 PEOPLE HAD BEEN ARRESTED AND ONE OTHER WAS SOUGHT BUT BELIEVED TO BE IN CHINA THE 13 WERE CHARGED WITH A SCHEME IN WHICH THEY INDUCED CUSTOMERS TO WHOM THEY HAD SOLD INSURANCE ANNUITY CONTRACTS AND MUTUAL FUNDS TO INVEST IN A SECURITY OFFERED EXCLUSIVELY BY OXFORD ACCORDING TO MR MORGENTHAU OXFORD EXECUTIVES AND EMPLOYEES USED THEIR CLIENTS' MONEY TO BUY AND LEASE HOMES AND CARS FOR THEMSELVES AND PAY FOR A LAVISH WEDDING HELD AT THE PLAZA HOTEL AMONG OTHER THINGS UNDER THE INDICTMENT HANDED UP YESTERDAY EIGHT PEOPLE SAMUEL FORSON YVONNE THOMAS JAMES SEHN HEYWARD MITCHELL GRANTLEY HUNTE DAVID GREENE GARTH ROBINSON AND SHERYL DOWLING ARE CHARGED WITH ENTERPRISE CORRUPTION UNDER A NEW YORK STATE ANTIRACKETEERING STATUTE THAT CHARGE CARRIES A MANDATORY SENTENCE OF AS MUCH AS 25 YEARS IN PRISON ON CONVICTION FOUR OTHERS WERE ARRESTED ON LESSER CHARGES OF SECURITIES FRAUD AND GRAND LARCENY THE 13TH DEFENDANT INDONGESIT UDOH IS BELIEVED TO BE IN CHINA PROSECUTORS SAID ATTORNEYS FOR THE DEFENDANTS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT OXFORD CAPITAL ALSO KNOWN AS THE OXFORD GROUP WAS A NEW YORK BROKERDEALER WITH APPROXIMATELY 50 REGISTERED BROKERS IN 1991 IT WAS SUSPENDED FROM MEMBERSHIP IN THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE OVERTHECOUNTER MARKET'S SELFREGULATORY BODY AFTER THE NASD FOUND IT HAD KEPT POOR RECORDS LAST YEAR A FEDERAL JUDGE IN NEW YORK FROZE THE COMPANY'S ASSETS AND ORDERED OFFICIALS TO PRODUCE FINANCIAL RECORDS ACCORDING TO A WRITTEN RELEASE FROM MR MORGENTHAU'S OFFICE OXFORD CAPITAL DELIBERATELY LIED TO THE SEC AND NASD ABOUT ITS ACTIVITIES AND FINANCIAL CONDITION IN FILINGS WITH THOSE AUTHORITIES AN SEC SPOKESMAN DECLINED TO COMMENT ON WHETHER THE AGENCY IS INVESTIGATING OXFORD CAPITAL 9303030170 930303 UNOCAL ANADARKO GAS WELL TEST LOS ANGELES UNOCAL CORP SAID AN EXPLORATORY WELL IT OPERATES IN LIBERTY COUNTY TEXAS FLOWED 53 MILLION CUBIC FEET OF NATURAL GAS A DAY IN A TEST OF THE YEGUA GEOLOGICAL FORMATION THE TEST AT THE UNOCAL NO 1 ARCO FEE WILDCAT WELL WAS MADE THROUGH A 10/64INCH CHOKE WITH TUBING PRESSURE OF 4755 POUNDS PER SQUARE INCH THE TEST ALSO PRODUCED 103 BARRELS OF NATURAL GAS CONDENSATE THE COMPANY SAID UNOCAL WHICH IS THE OPERATOR SAID IT HOLDS A 50 STAKE IN THE 2400 ACRES SURROUNDING THE WELL ANADARKO PETROLEUM CORP HOLDS THE OTHER 50 INTEREST THE WELL WAS DRILLED TO A DEPTH OF 13008 FEET TEST RESULTS WERE OBTAINED FROM A 109FOOT INTERVAL BETWEEN 11812 FEET AND 11921 FEET 9303030169 930303 SPECTRUM RESTRUCTURES DEBT ERIE PA SPECTRUM CONTROL INC SAID IT RESTRUCTURED DEBT BY PAYING 32 MILLION TO REDEEM BONDS WITH AN AGGREGATE FACE VALUE OF 77 MILLION AS A RESULT THE MAKER OF ELECTROMAGNETIC PRODUCTS EXPECTS AN EXTRAORDINARY GAIN OF 45 MILLION FOR ITS SECOND QUARTER ENDED MAY 31 IN THE YEARAGO SECOND QUARTER SPECTRUM EARNED 321000 OR TWO CENTS A SHARE ON SALES OF 8 MILLION THE BONDS REPRESENTED THE OUTSTANDING PORTION OF 78 MILLION BOND ISSUE THAT THE COMPANY USED TO BUY LAND A BUILDING AND EQUIPMENT IN 1986 9303030168 930303 WHIRLPOOL IS CALLING BACK 336 LAIDOFF EMPLOYEES BENTON HARBOR MICH WHIRLPOOL CORP SAID IT IS CALLING BACK 366 LAIDOFF EMPLOYEES AND HIRING 420 NEW WORKERS TO BUILD REFRIGERATORS AT ITS EVANSVILLE IND FACTORY WHIRLPOOL SAID IT DECIDED TO ADD A THIRD SHIFT AT THE FACTORY TO MEET INCREASED DEMAND FOR ITS REFRIGERATORS WHIRLPOOL SAID IT BEGAN EXPERIENCING INCREASED REFRIGERATOR DEMAND IN LAST YEAR'S FOURTH QUARTER AS CONSUMER CONFIDENCE LURCHED FORWARD RELEASING SOME PENTUP DEMAND THE DEMAND INCREASE CONTINUED INTO THIS YEAR WHIRLPOOL FIGURES POWERED BY THE APPEAL OF NEW MODELS IT BEGAN SELLING IN JANUARY THAT MUST MEET TOUGHER GOVERNMENT STANDARDS FOR ENERGY EFFICIENCY ADDING ANOTHER PRODUCTION SHIFT ALSO RESTORES SOME OF THE CAPACITY FOR BUILDING REFRIGERATORS THAT WHIRLPOOL ELIMINATED IN 1991 WHEN IT CLOSED ITS PORT CREDIT ONTARIO REFRIGERATOR FACTORY ELIMINATING 350 JOBS DURING THAT RESTRUCTURING WHIRLPOOL DECIDED IT WOULD BUILD ALL OF ITS TOP AND BOTTOMFREEZER REFRIGERATORS FOR THE US AND CANADIAN MARKETS AT ITS EVANSVILLE FACTORY STARTING A THIRD SHIFT MARKS THE FIRST TIME IN WHIRLPOOL'S HISTORY THAT ONE OF ITS FACTORIES WILL OPERATE A THIRD PRODUCTION SHIFT TWOSHIFT MANUFACTURING OPERATIONS WERE RARE AT WHIRLPOOL BEFORE 1988 THE APPLIANCE MAKER SAID 9303030167 930303 ENTERPRISE SELLING ITEMS TO DEAL WITH DISASTER JUMPS TO FEVER PITCH FIRMS SEE OPPORTUNITY FOR CERTAIN PRODUCTS SERVICES FOLLOWING BOMBING BY MICHAEL SELZ AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE WAKE OF THE WORLD TRADE CENTER BOMB EXPLOSION LAST FRIDAY SMALL COMPANIES AROUND THE COUNTRY ARE RUSHING TO PITCH PRODUCTS AND SERVICES DESIGNED TO HELP PEOPLE AVOID DISASTER OR COPE WITH IT THESE FIRMS ARE RUNNING RADIO AND NEWSPAPER ADVERTISEMENTS SETTING UP TOLLFREE HOT LINES CALLING ON HIGHRISE BUILDING TENANTS AND SEEKING MEDIA INTERVIEWS THEY SEE AN OPPORTUNITY TO SELL EVERYTHING FROM GLOWINTHEDARK EXIT SIGNS TO STRESS COUNSELING AS THE COMPANIES TEND TO BE SPECIALIZED MANY ARE SMALL AT THE SITE OF THE NEW YORK DISASTER SMARTSOFT SYSTEMS INC WAS DISTRIBUTING PAMPHLETS TO PASSERSBY YESTERDAY IN FRONT OF THE WORLD TRADE CENTER TOWERS ITS FLYER READ GOT A SICK PC COMPUTER DOCTORS ARE READY TO HELP YOU SAYS YIGAL MELAMUD PRESIDENT A LOT OF COMPANIES ARE MOVING AROUND RIGHT NOW AND NEED HELP WITH THEIR COMPUTERS AND WE'RE IN A POSITION TO LEND A HAND BUT COMPANIES FAR REMOVED FROM THE BLAST ALSO HAD IDEAS ESSEX PB&R CORP AN ELKTON MD PROVIDER OF EMERGENCY LIFESUPPORT SYSTEMS SAYS IT PROBABLY WILL ALTER ITS PROMOTION OF A NEW PORTABLE SAFETY HOOD COINCIDENTALLY INTRODUCED LAST WEEK THE HOOD PROTECTS USERS FROM SMOKE AND TOXIC FUMES INCLUDING POISONOUS CARBON MONOXIDE THE INITIAL AD CAMPAIGN TARGETED BUSINESS TRAVELERS WHO COULD BE TRAPPED IN BURNING JETS OR HOTELS NOW THE FIRM SAYS IT PROBABLY WILL FOCUS ITS ADS ON TENANTS IN HIGHRISE OFFICE BUILDINGS THERE IS A STRONG POSSIBILITY THAT SOME PLANNED PRINT ADS IN TIME NEWSWEEK US NEWS & WORLD REPORT AND SPORTS ILLUSTRATED WILL REFER TO LAST FRIDAY'S DOWNTOWN MANHATTAN DISASTER SAYS LISA BARROS ESSEX PB&R MARKETING MANAGER THE CONCERN HAD REVENUE OF 3 MILLION LAST YEAR OFFICIALS SAY PEOPLE SITTING AT THEIR DESKS NOW REALIZE THEY'RE AT RISK FROM POISONOUS SMOKE AS WELL MS BARROS ADDS WE WANT TO LET CONSUMERS KNOW THAT THIS KIND OF SAFETY DEVICE IS NOW AVAILABLE ADVANCED SAFETY SYSTEMS INC A MIAMI CONCERN THAT PROJECTS REVENUE OF 37 MILLION THIS YEAR ALSO PLANS TO TAILOR ITS NEWPRODUCT ADVERTISING TO THE BLAST THE CONCERN HAS DEVELOPED A NONSKID GLOWINTHEDARK COATING FOR FLOORS AND STEPS THAT SERVES AS A GUIDE TO STAIRS AND EXITS NOW THE COMPANY SAYS IT PLANS TO PITCH SAFE STEP IN TRADE JOURNALS AS AN IDEAL AID DURING EMERGENCY EVACUATIONS LIKE THE WORLD TRADE CENTER'S WHERE POWER OUTAGES FORCED THOUSANDS TO GROPE DOWN SMOKY DARK STAIRWELLS TO ESCAPE WE'RE GOING TO USE THAT AS AN EXAMPLE OF THE KIND OF SITUATION THAT COULD PREVAIL AND HOW WITH SAFE STEP IT COULD BE AVOIDED SAYS GARY HUNT ADVANCED'S FOUNDER AND PRESIDENT IN THE FACE OF TRAGEDY MARKETING EFFORTS SHOULD BE TASTEFUL BUT A DISASTER STILL PRESENTS A LEGITIMATE OPPORTUNITY SAYS BORIS KRANTZ A WARREN NJ MARKETING AND COMMUNICATIONS CONSULTANT IF I WERE SELLING SECURITY SERVICES OR DEVICES I'D BE MARKETING LIKE CRAZY RIGHT NOW HE SAYS THERE'S A WINDOW OF OPPORTUNITY WHILE PEOPLE CONTINUE TO REACT EMOTIONALLY TO THE SITUATION EVEN SIX MONTHS FROM NOW I THINK A PROPER MARKETING COMMUNICATIONS EFFORT CAN REAWAKEN THAT SENSITIVITY COMDISCO DISASTER RECOVERY SERVICES A UNIT OF COMDISCO INC WITH 200 MILLION IN ANNUAL REVENUE SAYS IT IS HOPING TO ATTRACT MORE BUSINESS WITH A NEW TOLLFREE HOT LINE THE ROSEMONT ILL COMPANY PROVIDES BACKUP FACILITIES FOR TEMPORARILY DISPLACED BUSINESSES IT PROVIDES OFFICE SPACE FULLY EQUIPPED WITH COMPUTERS DATAPROCESSING GEAR AND PHONE LINES THE COMDISCO UNIT INSTALLED THE HOT LINE LAST SUNDAY BECAUSE WE WANT TO GET THE WORD OUT THAT THERE'S HELP OUT THERE FOR DISPLACED WORLD TRADE CENTER TENANTS OR FOR ANY FIRM THAT MAY ONE DAY FIND THEMSELVES IN SIMILAR STRAITS SAYS DOUG COGSWELL A COMDISCO EXECUTIVE VICE PRESIDENT MR COGSWELL SAYS THE TOLLFREE NUMBER WHICH THE COMPANY BEGAN ADVERTISING YESTERDAY ON NEW YORK AREA RADIO STATIONS HAS RECEIVED 100 CALLS KENNETH BAECHEL PRESIDENT OF AUTOMATED COMMUNICATIONS INC IN SCHENECTADY NY SAYS HE TRIED TO DRUM UP BUSINESS SINCE THE EXPLOSION BY SENDING FAXES ABOUT HIS FIRM TO NEW YORK CITY MAYOR DAVID DINKINS AND NEW YORK GOV MARIO CUOMO AUTOMATED OPERATES A SERVICE THAT USES SPECIAL CELLULAR PHONES TO RELAY INSTRUCTIONS TO A CLIENT'S EMPLOYEES AFTER AN EMERGENCY IT ALSO WILL CONTACT CUSTOMERS AND SUPPLIERS THE FIRM SOLICITED THE MAYOR AND GOVERNOR BECAUSE WE JUST WANTED TO GET THE NEWS OUT TO PEOPLE WHO WOULD FIND THE SERVICE VALUABLE IN A FUTURE EMERGENCY SAYS MR BAECHEL SOME SMALL CONCERNS ARE SKITTISH ABOUT CAPITALIZING ON THE WORLD TRADE CENTER DISASTER WE DON'T WANT TO APPEAR LIKE AMBULANCE CHASERS SAYS BRUCE BLYTHE PRESIDENT AND OWNER OF CRISIS MANAGEMENT INTERNATIONAL INC THE SMALL ATLANTA CONCERN PROVIDES COUNSELING AND OTHER SERVICES TO HELP COMPANIES AND THEIR EMPLOYEES COPE WITH THE STRESS OF DISASTERS NONETHELESS MR BLYTHE SAYS THE EXPLOSION WILL DEFINITELY BE A BUSINESS OPPORTUNITY FOR THE FIRM WE DEAL WITH EXPLOSIONS AIR CRASHES WORKPLACE MURDER INDUSTRIAL ACCIDENTS EARTHQUAKES HURRICANES ANYTHING THAT CAUSES A TRAUMATIC STRESS REACTION TWO MAJOR FIRMS WITH OFFICES IN THE WORLD TRADE CENTER ARE CONSIDERING HIRING CRISIS MANAGEMENT HE SAYS ADDING WE ALREADY HAVE PEOPLE READY TO GO SOME ENTREPRENEURS ARE BETTING THAT CONCERNS ARISING OUT OF THE BOMBING WON'T FADE SOON PATTI FITZGERALD MANAGING EDITOR OF DISASTER RECOVERY JOURNAL IN ST LOUIS IS EXPECTING ATTENDANCE AT HER ANNUAL DISASTERPLANNING CONFERENCE NEXT FALL WILL DOUBLE TO 1000 THIS YEAR THE WORLD TRADE CENTER BOMBING WILL BE A KEY TOPIC AT THE CONFERENCE IN ATLANTA SHE ADDS THOUGH DISASTER PLANNING HAS INCREASED AMONG BIG COMPANIES THERE IS STILL LOTS OF ROOM FOR IMPROVEMENT MS FITZGERALD NOTES A SURVEY OF 148 MAJOR COMPANIES BY HER MAGAZINE FUND 35 HAVE BACKUP PLANS FOR THEIR COMPUTER CENTERS BUT LACK SUCH PLANS FOR ANY OTHER FACILITIES 9303030166 930303 LAW CANADA'S SUPREME COURT ALLOWS LIVE TV COVERAGE OTTAWA CANADA'S SUPREME COURT ALLOWED FOR THE FIRST TIME YESTERDAY LIVE TELEVISION COVERAGE OF ITS PROCEEDINGS THE EXPERIMENTAL BROADCAST INVOLVED UNMANNED COURT CAMERAS THAT WERE ACTIVATED BY SOUND SWITCHING FROM SPEAKER TO SPEAKER IN RESPONSE TO THEIR VOICES NO OTHER CANADIAN COURT PERMITS RADIO OR TELEVISION COVERAGE OF ITS HEARINGS THE US SUPREME COURT DOESN'T ALLOW ITS PROCEEDINGS TO BE TELEVISED BUT COURTS IN MANY STATES DO CANADIAN CHIEF JUSTICE ANTONIO LAMER SAID THE COURT WILL REVIEW THE TEST AND DECIDE WHETHER TO ALLOW REGULAR TELEVISION COVERAGE OF ITS PROCEEDINGS THE CASE HEARD YESTERDAY INVOLVED A SELFEMPLOYED TORONTO LAWYER ELIZABETH SYMES WHO WAS DENIED A CLAIM TO DEDUCT THE FULL SALARY OF HER NANNY AS A BUSINESS EXPENSE CANADA'S INCOME TAX ACT ALLOWS SELFEMPLOYED PARENTS TO DEDUCT ONLY AS MUCH AS 4000 CANADIAN DOLLARS US3204 A YEAR FOR CHILDCARE EXPENSES A LOWER COURT RULED THAT CHILDCARE COSTS AREN'T A BUSINESS EXPENSE THE SUPREME COURT'S RULING ISN'T EXPECTED FOR SEVERAL MONTHS THE CASE HAS RECEIVED CONSIDERABLE ATTENTION THE CANADIAN BAR ASSOCIATION TESTIFIED IN FAVOR OF MS SYMES BECAUSE IT SAID THE CASE INVOLVED THE EQUALITY RIGHTS OF WOMEN IT WAS THE FIRST TIME IN THE BAR ASSOCIATION'S 72YEAR HISTORY THAT IT HAS TESTIFIED IN A SUPREME COURT CASE 9303030165 930303 REVIEW & OUTLOOK EDITORIAL WINNING BANKERS' TRUST BILL CLINTON'S LASER BEAM WILL REPORTEDLY FOCUS NEXT ON BANKING HE SHOULD ZERO IN ON THE NEED TO RESTORE WASHINGTON'S REPUTATION FOR DEALING FAIRLY WITH AN INDUSTRY IT REGULATES IF HE CAN EVER ASSEMBLE A QUORUM AT JUSTICE A PLACE TO START MIGHT BE THE GOVERNMENT'S LAWSUIT WITH CALIFORNIA'S GLENDALE FEDERAL SAVINGS BANK IN THE EARLY 1980S REGULATORS WERE TRYING TO KEEP THE THRIFT INDUSTRY AFLOAT BY ENCOURAGING HEALTHY S&LS TO BUY UP SICK ONES GLENDALE OBLIGED BY ACQUIRING FLORIDA'S FIRST FEDERAL OF BROWARD COUNTY AS PART OF THE DEAL THE PURCHASE PRICE WAS TO BE TREATED AS CAPITAL AND WRITTEN OFF OVER 40 YEARS THEN CONGRESS YANKED AWAY THIS SUPERVISORY GOODWILL IN THE 1991 THRIFT FLAGELLATION LAW AND GLENDALE WAS SUDDENLY FACED WITH A 734 MILLION CAPITAL HOLE ON JUNE 30 FEDERAL ENFORCERS PLAN TO SHUT IT DOWN AT A COST OF 3 BILLION OR MORE LAST SUMMER CHIEF JUDGE LOREN SMITH OF THE US COURT OF CLAIMS RULED THAT GLENDALE HAD IN EFFECT BEEN ROOKED BY THE FEDERAL GOVERNMENT THE CASE IS NOW ON APPEAL BUT A DECISION PROBABLY WON'T COME UNTIL AFTER THE SUN SETS ON GLENDALE JUDGE SMITH THINKS THAT WOULD BE AN HISTORIC IRONY OF UNPARALLELED WASTE AND COST THOUGH HE CAN'T COMPEL ANYBODY TO DO ANYTHING IN AN ORDER LAST MONTH HE STRONGLY URGED REGULATORS TO REACH A VOLUNTARY AGREEMENT THAT WOULD KEEP GLENDALE OPEN UNTIL THE APPEALS RUN THEIR COURSE GLENDALE'S LAWYERS YESTERDAY MAILED OUT A PLAN BY WHICH THE GOVERNMENT WOULD RECAPITALIZE THE BANK WITH 700 MILLION IN PREFERRED STOCK IF GLENDALE CONTINUES TO TURN AROUND THE FINAL COST TO TAXPAYERS COULD BE ZERO ACCORDING TO ATTORNEY JOE HOLLINGSWORTH IS ANYBODY LISTENING IN THE NEW ADMINISTRATION WEBSTER HUBBELL THE FORMER LITTLE ROCK LAWYER AND NOW WHITE HOUSE LIAISON TO THE JUSTICE DEPARTMENT SEEMS TO BE A CANDO SORT OF GUY PATRICIA LEITNER OF THE JUSTICE DEPARTMENT MET WITH JUDGE SMITH AND GLENDALE'S LAWYERS TWO WEEKS AGO SHE ACKNOWLEDGED THAT SHUTTING GLENDALE DOWN MIGHT BE EXPENSIVE BUT THE COMPLEXITY OF THE ANALYSIS WAS SUCH THAT EVEN WITH AN ARMY OF BANK EXAMINERS ON THE PAYROLL THE GOVERNMENT COULDN'T COME UP WITH A PROPOSAL FOR FOUR TO SIX MONTHS AND ANYWAY THE GOVERNMENT WOULD NEVER MAKE A DEAL BECAUSE THAT WOULD UNDERMINE REGULATORY FLEXIBILITY CYNICS OF LONG REGULATORY EXPERIENCE WOULD TRANSLATE THAT LAST PHRASE TO MEAN THE GOVERNMENT GETS TO MAKE UP THE RULES AS IT GOES ALONG NO DOUBT THE REGULATORS ALSO WORRY ABOUT HOW AN ARRANGEMENT WITH GLENDALE WOULD PLAY ON CAPITOL HILL SENATE BANKING CHAIRMAN DON RIEGLE IS ALWAYS READY TO WAGE A JIHAD AGAINST UPPITY BANKERS IN THE HOPES THAT VOTERS NEXT YEAR WILL OVERLOOK HIS OWN FROLICS WITH CHARLIE KEATING ONE OF THE S&L INDUSTRY'S GENUINE MOUNTEBANKS FROM WHERE WE SIT THE PUBLIC INTEREST LONG AGO GOT SHOVED ASIDE IN THE UNENDING HUNT FOR S&L SCAPEGOATS THE FDIC EARLIER THIS YEAR EXTRACTED 23 MILLION IN SETTLEMENT FROM THE EXHAUSTED FORMER DIRECTORS OF DALLAS'S FIRST REPUBLIC THERE WERE 66 OF THEM INCLUDING JERRY JUNKINS CHIEF EXECUTIVE OF TEXAS INSTRUMENTS DOES ANYBODY REALLY BELIEVE THESE PEOPLE ARE CRIMINALS RTC CHIEF ALBERT CASEY TESTIFIED IN COURT THAT BLAME FOR FIRST REPUBLIC'S COLLAPSE BELONGS ULTIMATELY NOT WITH THE DIRECTORS BUT SHOULD BE THROWN AT CONGRESS THE CLINTONITES AND FED CHAIRMAN GREENSPAN ARE TEAMING UP TO ENCOURAGE BANKS AGAIN TO MAKE CHARACTER LOANS TO PROMISING ENTREPRENEURS WHO MAY NOT BE SWIMMING IN COLLATERAL BUT ACCORDING TO REPORTS THE ADMINISTRATION HAS GIVEN UP ANY HOPE OF HELP FROM CONGRESS WHICH APPARENTLY FEELS THAT IF IT CAN STRING UP ENOUGH PRIVATE CITIZENS A SATED ELECTORATE WILL FORGET CONGRESS'S OWN CULPABILITY BUT IF BANKERS ARE TO LEND AGAIN IF THEY ARE TO ENGAGE IN AN ACTIVITY THAT COULD INDEED CREATE REAL JOBS THEY NEED SOME ASSURANCE THAT THEY WON'T BECOME PUNCHING BAGS FOR CAPITOL SOLONS EMBARRASSED ABOUT THEIR OWN S&L HISTORY GETTING THE GLENFED CASE BEHIND IT WOULD BE AN IMPORTANT SIGNAL THAT THE GOVERNMENT INTENDS TO REESTABLISH THAT ASSURANCE 9303030164 930303 INTERNATIONAL RUSSIA IS WILLING TO ACCEPT MALAYSIAN ITEMS FOR MIGS KUALA LUMPUR MALAYSIA AP RUSSIA COMPETING WITH THE US TO SELL JET FIGHTERS TO MALAYSIA AGREED TO ACCEPT PART OF THE PAYMENT FOR MIGS IN PALM OIL FABRICS AND OTHER GOODS OFFICIALS SAID WE STAND READY TO RECEIVE SOME PAYMENT IN A COUNTER TRADE ARRANGEMENT ALEXANDER RUTSKOI RUSSIA'S VICE PRESIDENT SAID AT A NEWS CONFERENCE MALAYSIAN DEFENSE OFFICIALS EMPHASIZED THAT NO AGREEMENT HAD BEEN REACHED TO BUY THE MIGS AND THAT US FIGHTER PLANES ALSO WERE BEING CONSIDERED MALAYSIA PLANS TO PURCHASE 20 OR 30 PLANES MCDONNELL DOUGLAS CORP AND GENERAL DYNAMICS CORP RECENTLY APPROACHED MALAYSIA TO SELL THEIR F/A18D AND F16 FIGHTER PLANES 9303030163 930303 FINANCING BUSINESS PUGET SOUND POWER & LIGHT CO PUGET SOUND POWER & LIGHT CO SAID IT WILL REDEEM THE COMPANY'S 20 MILLION OF 6625 FIRST MORTGAGE BONDS ON APRIL 2 THE BONDS WHICH WERE TO MATURE JUNE 1 1997 WILL BE REDEEMED AT 10057 OF PAR PLUS ACCRUED INTEREST PUGET SOUND POWER LAST WEEK MARKETED 15 MILLION OF THREEYEAR NOTES AND 5 MILLION OF FIVEYEAR NOTES AT A COMBINED AVERAGE COUPON RATE OF 506 PROCEEDS FROM THOSE ISSUES WILL BE USED TO FINANCE THE MORTGAGE BOND REDEMPTION A COMPANY OFFICIAL SAID IN BELLEVUE WASH 9303030162 930303 FINANCING BUSINESS SERVICE CORP INTERNATIONAL SERVICE CORP INTERNATIONAL HOUSTON COMPLETED REDEMPTION OF A 100 MILLION ISSUE OF 65 CONVERTIBLE SUBORDINATED DEBENTURES DUE APRIL 15 2011 HOLDERS OF 972 MILLION OF THE DEBENTURES CONVERTED THEM TO COMMON STOCK RESULTING IN THE ISSUE OF 56 MILLION SHARES THE REMAINDER WAS REDEEMED FOR CASH THE FUNERAL SERVICE CONCERN SAID 9303030161 930303 AMERICAN GREETINGS BUYS STAKE CLEVELAND AMERICAN GREETINGS CORP AGREED TO BUY A 499 STAKE IN JOHN SANDS GROUP A CLOSELY HELD GREETINGCARD MAKER BASED IN MELBOURNE AUSTRALIA TERMS OF THE PROPOSED PURCHASE HAVEN'T BEEN NEGOTIATED BUT THE FINAL PRICE OF THE STAKE IS EXPECTED TO BE MORE THAN 30 MILLION AN AMERICAN GREETINGS SPOKESMAN SAID THE TRANSACTION IS SUBJECT TO APPROVAL BY THE AUSTRALIAN FOREIGN INVESTMENT REVIEW BOARD AUSTRALIA AND NEW ZEALAND MAKE UP THE FOURTH LARGEST GREETINGCARD MARKET IN THE WORLD BEHIND THE US CANADA AND ENGLAND AMERICAN GREETINGS SAID JOHN SANDS HAS ABOUT 800 WORKERS INCLUDING 600 IN MELBOURNE AND 200 IN AUCKLAND NEW ZEALAND AMERICAN GREETINGS THE NATION'S NO 2 GREETINGCARD MAKER BEHIND HALLMARK CARDS INC HAS 21400 WORKERS 9303030160 930303 INACOM PLANS OFFERING OMAHA NEB INACOM CORP SAID IT ANTICIPATES MAKING A PUBLIC OFFERING OF 25 MILLION TO THREE MILLION NEWLY ISSUED COMMON SHARES AND THAT ITS LARGEST SHAREHOLDER IS CONSIDERING A SALE OF SOME OR ALL OF ITS 37 STAKE AS PART OF THE OFFERING THE COMPUTER SYSTEMS AND SERVICES MARKETER ALSO SAID IT WILL HOLD A SPECIAL SHAREHOLDERS MEETING MARCH 30 TO TRIPLE INACOM'S AUTHORIZED COMMON STOCK TO 30 MILLION SHARES INACOM ONCE A WHOLLY OWNED SUBSIDIARY OF VALMONT INDUSTRIES INC OF VALLEY NEB SAID ITS FORMER PARENT WAS CONSIDERING THE SALE OF SOME OR ALL OF ITS 31 MILLION INACOM SHARES 9303030159 930303 FINANCING BUSINESS HALLWOOD GROUP HALLWOOD GROUP SAID IN DALLAS IT ESTIMATES THAT 27471000 OR 60 OF THE PRINCIPAL AMOUNT OF ITS ORIGINAL SERIES 135 SUBORDINATED DEBENTURES DUE JULY 31 2009 HAVE BEEN TENDERED FOR EXCHANGE OR PURCHASE AND NOT WITHDRAWN IN ADDITION IT SAID ABOUT 3640000 OR 61 OF THE PRINCIPAL OF ITS 1991 SERIES DEBENTURES AND ABOUT 4374000 OR 64 OF PRINCIPAL AMOUT OF THE 1992 SERIES DEBENTURES ALSO HAVE BEEN TENDERED THE COMPANY SAID ITS EXCHANGE OFFER EXPIRED MONDAY 9303030158 930303 FINANCING BUSINESS BANK OF NOVA SCOTIA BANK OF NOVA SCOTIA SAID IN TORONTO THAT IT PLANS TO ISSUE 300 MILLION CANADIAN DOLLARS US2403 MILLION OF 810 DEBENTURES TO MATURE MARCH 24 2003 IT SAID THE PROCEEDS WILL BE ADDED TO THE BANK'S TIER 2 CAPITAL BASE THE BANK SAID THE DEBENTURES AREN'T REDEEMABLE PRIOR TO MATURITY HOWEVER ON ANY INTEREST PAYMENT DATE AFTER THE FIFTH ANNIVERSARY OF THE ISSUE DATE THE BANK SAID IT MAY OFFER THE HOLDER THE OPPORTUNITY TO EXCHANGE THE DEBENTURES FOR AN EQUAL AMOUNT OF DEPOSIT NOTES BEARING THE SAME ATTRIBUTES OR TO CONVERT TO A NEW ISSUE OF DEBENTURES SCOTIAMCLEOD INC TORONTO IS THE LEAD UNDERWRITER OF THE ISSUE 9303030157 930303 INTERNATIONAL SOUTH KOREAN TRADE DEFICIT SEOUL SOUTH KOREA SOUTH KOREA'S TRADE DEFICIT IN FEBRUARY NARROWED TO 525 MILLION FROM 122 BILLION AS EXPORTS ROSE 16 TO 597 BILLION AGAINST A RISE OF 2 IN IMPORTS TOTALING 649 BILLION THE EXPORT GAIN OF 16 IN FEBRUARY IS THE FIRST DOUBLEDIGIT GROWTH SINCE SEPTEMBER 9303030156 930303 FINANCING BUSINESS FIRST WESTERN CORP FIRST WESTERN CORP SCOTTSDALE ARIZ FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 175 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND RAUSCHER PIERCE REFSNES INC FIRST WESTERN IS A MORTGAGE BANKING COMPANY 9303030155 930303 EATON CORP VORAD VENTURE CLEVELAND EATON CORP SAID IT FORMED A 5050 JOINT VENTURE WITH VORAD SAFETY SYSTEMS INC TO DEVELOP AND SELL RADAR COLLISIONWARNING SYSTEMS FOR CARS AND TRUCKS THE VENTURE WILL BE BASED IN SAN DIEGO VORAD OF SAN DIEGO MAKES COLLISIONWARNING RADAR SYSTEMS IT'S THE MANUFACTURING UNIT OF IVHS TECHNOLOGIES INC ALSO BASED IN SAN DIEGO EATON MAKES ENGINEERED PRODUCTS FOR THE AUTO INDUSTRIAL COMMERCIAL AND MILITARY MARKETS 9303030154 930303 ALASKA AIR UNITS REPORT TRAFFIC SEATTLE ALASKA AIR GROUP INC SAID FEBRUARY TRAFFIC AT ITS ALASKA AIRLINES UNIT FELL 25 TO 290 MILLION REVENUE PASSENGER MILES FROM 386 MILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE PASSENGER LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED BY PAYING PASSENGERS WAS 495 COMPARED WITH 52 IN THE YEAREARLIER PERIOD HORIZON AIR ALSO A UNIT OF ALASKA AIR GROUP SAID ITS FEBRUARY TRAFFIC INCREASED 14 TO 357 MILLION REVENUE PASSENGER MILES COMPARED WITH 312 MILLION MILES FLOWN A YEAR EARLIER LOAD FACTOR WAS 519 COMPARED WITH 478 A YEAR AGO 9303030153 930303 YOUR MONEY MATTERS DIVIDEND REINVESTMENT PLANS TAKE ON NEW LOOK BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL LOOK SHARP WALL STREET TAKE NOTE MUTUAL FUNDS THE STODGY OLD DIVIDEND REINVESTMENT PLAN IS STARTING TO TAKE ON A NEW LOOK FOR YEARS SOME COMPANIES HAVE LET STOCKHOLDERS BUY ADDITIONAL SHARES WITHOUT GOING THROUGH A BROKER BY REINVESTING DIVIDENDS OR SIMPLY WRITING OUT A CHECK FOR THE EXTRA STOCK A HANDFUL OF COMPANIES EVEN HAVE ALLOWED INVESTORS TO BYPASS BROKERS RIGHT FROM THE START AND MAKE THEIR INITIAL INVESTMENTS DIRECTLY NOW THESE PLANS KNOWN AS DRIPS ARE GENERATING A LOT OF INVESTOR INTEREST PROMPTING A GROWING NUMBER OF GUIDES AND NEWSLETTERS AND SOME COMPANIES' PLANS ARE BEING REVAMPED OFFERING SHAREHOLDER SERVICES THAT ARE SIMILAR TO THOSE PROVIDED BY MUTUAL FUNDS EXXON CORP IS ONE COMPANY THAT OFFERS THESE EXPANDED INVESTMENT SERVICES ALLOWING PEOPLE TO BUY STOCK DIRECTLY OPEN INDIVIDUAL RETIREMENT ACCOUNTS AND EVEN SET UP AUTOMATIC TRANSFERS FROM THEIR BANK ACCOUNTS TO BUY EXXON STOCK THE RESPONSE HAS BEEN TREMENDOUS WITH AN ESTIMATED ONE MILLION STOCKHOLDERS INCLUDING THOSE WHO KEEP THEIR SHARES IN STREET NAME AT BROKERAGE FIRMS EXXON HAS SIGNED UP SOME 187000 DIRECT INVESTMENT ACCOUNTS SINCE IT STARTED THE PROGRAM A YEAR AGO BUT THE NUMBER OF COMPANIES OFFERING THESE SERVICES COULD GROW RAPIDLY IF STOCKTRANSFER AGENTS HAVE THEIR WAY STOCKTRANSFER AGENTS THE COMPANIES THAT SHUFFLE THE STOCK CERTIFICATES WHEN AN INVESTOR BUYS OR SELLS SHARES AND THAT SEND OUT THE CHECKS WHEN A CORPORATION PAYS A DIVIDEND ARE PROPOSING WHAT THEY CALL THE INVESTOR REGISTRATION OPTION AT ITS HEART THIS IS A BOOKKEEPING SYSTEM THAT WOULD ELIMINATE STOCK CERTIFICATES UNLESS SPECIFICALLY REQUESTED BY AN INVESTOR BUT THE SYSTEM WOULD ALSO MAKE IT EASY FOR THE ISSUER TO OFFER A WHOLE HOST OF SERVICES DIRECTLY TO INDIVIDUAL INVESTORS EACH COMPANY WOULD COME UP WITH ITS OWN PACKAGE BUT ONE CRITICAL INGREDIENT IS LIKELY TO BE THE ABILITY TO BUY AND SELL STOCK DIRECTLY FROM A COMPANY WITHOUT A BROKER ALL OF US ON THE TECHNICAL SIDE KNOW AT SOME DATE PAPER CERTIFICATES ARE GOING TO GO OUT THE WINDOW SAYS THOMAS BYRNE INVESTORREGISTRATIONOPTION ADVISER TO THE CORPORATE TRANSFER AGENTS ASSOCIATION THESE NEW SERVICES WOULD BE USED AS AN ENTICEMENT TO MOVE US ALONG THE PROCESS THE BROKERAGE COMMUNITY ISN'T SOLD ON THE CONCEPT WHICH IT SAYS DEPRIVES SHAREHOLDERS OF BASIC RIGHTS THESE INCLUDE THE RIGHT TO A STOCK CERTIFICATE WITHOUT ADDITIONAL PAPERWORK AND THE RIGHT TO THE BEST MARKET PRICE SAYS MICHAEL T REDDY A CONSULTANT TO THE SECURITIES INDUSTRY ASSOCIATION WE THINK IT REMAINS TO BE SEEN WHETHER INVESTORS WOULD BE INTERESTED IN PARTICIPATING IN SUCH PLANS MR REDDY SAYS CORPORATIONS THAT ISSUE STOCK WILL ALSO HAVE TO BE PERSUADED EVEN IF PROVIDED TO ONLY A LIMITED POPULATION EMPLOYEES FOR EXAMPLE THE INVESTOR REGISTRATION OPTION MAY REQUIRE A COMPANY TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION TO CHANGE THE WAY IT HANDLES STOCK AND NOT ALL COMPANIES ARE COMMITTED TO THE KIND OF ADDITIONAL SERVICES THAT MIGHT BE OFFERED ONCE THE PROGRAM IS IN PLACE ABOUT 900 COMPANIES OFFER TODAY'S MORE LIMITED DIVIDEND REINVESTMENT PROGRAMS SAYS CHARLES CARLSON PUBLISHER OF DRIP INVESTOR NEWSLETTER IN HAMMOND IND ONLY A HANDFUL ALLOW INVESTORS TO MAKE THEIR INITIAL PURCHASES WITHOUT GOING THROUGH A BROKER INDEED PROCTER & GAMBLE CO RECENTLY TERMINATED ITS DIRECT PURCHASE PROGRAM SAYING THAT HUGE INVESTOR DEMAND DROVE UP ITS COSTS AND MADE THE PROGRAM TOO EXPENSIVE BEGINNING THIS SUMMER THE ONLY DIRECT PURCHASE WILL BE THROUGH DIVIDEND REINVESTMENT STILL PROPONENTS OF THE INVESTOR REGISTRATION OPTION ARE OPTIMISTIC JAMES VOLPE A VICE PRESIDENT AT FIRST CHICAGO TRUST IN NEW YORK AND A DEVELOPER OF THE CONCEPT SAYS THAT A HANDFUL OF SUCH PROGRAMS WILL BE IN PLACE BY YEAR END I SEE 80 OF ISSUERS OFFERING A VERSION OF THIS PLAN IN THE NEXT FOUR YEARS HE SAYS AND MANY CORPORATIONS ARE CLEARLY INTERESTED WE DON'T HAVE ONE YET BUT WE ARE INVESTIGATING IT FOR THE SAME REASONS THAT EVERYONE FROM IBM ON DOWN IS INVESTIGATING IT SAYS DAN BULLA DIRECTOR OF FINANCIAL RELATIONS AT HOUSTON INDUSTRIES INC IT MAY OFFER SOME ATTRACTIVE BENEFITS FOR THE INVESTOR HERE'S HOW IT MIGHT WORK A PERSON WANTING TO BUY STOCK IN A COMPANY WOULD CALL FOR AN APPLICATION WITH A NEW ACCOUNT MINIMUM OF MAYBE 250 THE INVESTOR WOULD SIMPLY WRITE A CHECK FOR THAT AMOUNT OR MORE AND SEND IT TO THE COMPANY WITHIN FIVE BUSINESS DAYS THE COMPANY WOULD THEN EITHER BUY THE STOCK ON THE OPEN MARKET OR ISSUE THOSE SHARES TO THE INVESTOR AT OPENMARKET PRICES CHARGING AT MOST A NOMINAL FEE TO COVER COSTS RATHER THAN GETTING A CERTIFICATE HOWEVER THE SHAREHOLDER WOULD GET A CONFIRMATION STATEMENT ALTHOUGH A CERTIFICATE COULD BE REQUESTED AND SENT WITHIN 48 HOURS IF THE INVESTOR WANTED SINCE SUCH DIRECT INVESTMENTS WOULDN'T BE AS FAST AS BUYING THE STOCK THROUGH A BROKER THEY WOULDN'T WORK FOR PEOPLE WHO WANTED TO TRADE AT A SPECIFIC PRICE YOU ARE REALLY TALKING ABOUT A MARKET NICHE SAYS HOUSTON INDUSTRIES' MR BULLA THE ACTIVE TRADERS WHO WANT TO BUY AND SELL QUICKLY AREN'T GOING TO USE A PROGRAM LIKE THIS THEY ARE GOING TO USE BROKERS BUT FOR THE SMALL INVESTOR WHO HAS ONLY A LIMITED AMOUNT TO INVEST THIS SYSTEM COULD SOLVE A LOT OF PROBLEMS PARTIAL SHARES NO PROBLEM SINCE THE TRANSACTION IS ELECTRONIC AND CAN KEEP TRACK OF FRACTIONAL SHARES THAT MEANS PEOPLE COULD INVEST SMALL AMOUNTS 50 A MONTH FOR EXAMPLE WITHOUT SEEING COMMISSIONS EAT UP THEIR INVESTMENTS ADD TO THAT AUTOMATIC INVESTMENT AND IRA MANAGEMENT AND THE PACKAGE BECOMES EVEN MORE ATTRACTIVE NONE OF THESE PIECES ARE REALLY ALL THAT NEW SAYS CECELIA WIDUP PRESIDENT OF THE CORPORATE TRANSFER AGENTS ASSOCIATION NOTING THAT COMPANIES HAVE BEEN OFFERING BITS AND PIECES OF THESE SERVICES THROUGH DIVIDEND REINVESTMENT PLANS FOR SOME TIME BUT PUTTING THEM TOGETHER IN A PACKAGE COULD BE QUITE REVOLUTIONARY 9303030152 930303 EQUITY OIL AUTHORIZES BUYBACK SALT LAKE CITY EQUITY OIL CO SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AS MANY AS 500000 SHARES OF ITS COMMON STOCK THE PURCHASES ARE TO BE MADE FROM TIME TO TIME ON THE OPEN MARKET EQUITY AN OIL AND GAS EXPLORATION AND DEVELOPMENT CONCERN SAID ITS CURRENT STOCK PRICE DOESN'T REFLECT THE COMPANY'S INHERENT VALUE EQUITY WAS QUOTED LATE YESTERDAY AT 3625 UP 625 CENTS IN OVERTHECOUNTER TRADING THE COMPANY CURRENTLY HAS ABOUT 122 MILLION SHARES OUTSTANDING 9303030151 930303 CARDINAL FINANCIAL HOLDERS VOTE OWENSBORO KY CARDINAL FINANCIAL GROUP SHAREHOLDERS APPROVED THE SALE OF THE COMPANY'S SOLE UNIT CARDINAL FEDERAL SAVINGS BANK TO GREAT FINANCIAL FEDERAL FOR 211 MILLION AT DEC 31 CARDINAL HAD ASSETS OF 254 MILLION AND GREAT FINANCIAL A CLOSELY HELD MUTUAL SAVINGS AND LOAN ASSOCIATION BASED IN LOUISVILLE KY HAD ASSETS OF 14 BILLION 9303030150 930303 TECHNOLOGY DIGITAL SHOWS NEW COMPUTERS MAYNARD MASS DIGITAL EQUIPMENT CORP UNVEILED NEW MICROTOWER PERSONAL COMPUTERS EXTENDING THE COMPANY'S EXISTING LINE OF PRODUCTS BASED ON INTEL CORP'S TOPOFTHELINE 486 COMPUTER CHIP THE NEW MACHINES WHICH RANGE IN PRICE FROM 2349 TO 2799 OFFER FEATURES SUCH AS QUIET OPERATION MULTIPLE EXPANSION SLOTS AND LOWRADIATION MONITORS AND ARE AVAILABLE IMMEDIATELY DIGITAL SAID 9303030149 930303 DSC WINS AMERITECH CONTRACT DALLAS DSC COMMUNICATIONS CORP SAID IT RECEIVED A THREEYEAR CONTRACT FROM AMERITECH CORP FOR DIGITAL LOOP CARRIER EQUIPMENT TO ENHANCE THE CAPABILITIES OF COPPER TELEPHONE LINES THE TELECOMMUNICATIONS EQUIPMENT MAKER DID NOT DISCLOSE TERMS 9303030148 930303 WHO'S NEWS TOYS R US INC TOYS R US INC PARAMUS NJ RICHARD MARKEE 39 YEARS OLD PREVIOUSLY VICE PRESIDENTGENERAL MERCHANDISE MANAGER OF THE TOY RETAILER'S KIDS R US APPAREL UNIT WAS NAMED PRESIDENT OF THE UNIT HE SUCCEEDS MICHAEL SEARLES 43 WHO HAD ACCEPTED AN EXECUTIVE POSITION WITH US SHOE CORP 9303030147 930303 WHO'S NEWS GREATER NEW YORK SAVINGS BANK GREATER NEW YORK SAVINGS BANK NEW YORK THEODORE A ZAREMBO 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT/CHIEF APPRAISER IN THIS BANK'S APPRAISAL DEPARTMENT A NEW POSITION 9303030146 930303 WHO'S NEWS GILLETTE CO GILLETTE CO BOSTON MICHAEL B GIFFORD MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER OF RANK ORGANISATION PLC WAS NOMINATED FOR ELECTION TO THE COMPANY'S BOARD THE PERSONALCAREPRODUCTS MAKER SAID MR GIFFORD 57 YEARS OLD WILL JOIN THREE INCUMBENT DIRECTORS WHO WILL BE VOTED UPON BY STOCKHOLDERS APRIL 15 THE ELECTION OF THE NOMINEES WOULD BOOST THE SIZE OF GILLETTE'S BOARD TO 12 FROM 11 9303030145 930303 HUNTWAY EXPECTS TO POST A 1992 LOSS OF UP TO 145 MILLION VALENCIA CALIF HUNTWAY PARTNERS LP WHICH HAS BLAMED ITS FORMER CHIEF FINANCIAL OFFICER FOR IRREGULARITIES IN ITS BOOKS SAID IT EXPECTS TO REPORT THAT IT HAD A NET LOSS LAST YEAR OF BETWEEN 125 MILLION AND 145 MILLION A YEAR EARLIER HUNTWAY HAD NET INCOME OF 3 MILLION OR 26 CENTS A SHARE ON REVENUE OF 1158 MILLION THE COMPANY HAD PREVIOUSLY REPORTED A NET LOSS FOR THE FIRST NINE MONTHS OF 1992 OF 19 MILLION OR 17 CENTS A SHARE ON REVENUE OF 80 MILLION BUT IN DECEMBER HUNTWAY SAID THAT IT HAD LAUNCHED AN INVESTIGATION BECAUSE OF APPARENT IRREGULARITIES AND THAT ITS LIQUIDITY POSITION MIGHT BE MISREPRESENTED BECAUSE OF AN OVERSTATEMENT OF ITS CASH AND TRADE PAYABLE ACCOUNTS HUNTWAY WHICH PRODUCES LIQUID ASPHALT FOR ROAD CONSTRUCTION SAID IT EXPECTS TO RELEASE FINAL AUDITED FINANCIAL RESULTS FOR 1992 AS WELL AS RESTATED UNAUDITED QUARTERLY RESULTS LATER THIS MONTH JUAN FORSTER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID FALSE AND INACCURATE INFORMATION APPEARS TO HAVE BEEN PROVIDED BY THE CHIEF FINANCIAL OFFICER DOUGLAS C HANSEN TO SENIOR MANAGEMENT THAT DENIED OFFICERS THE DATA NECESSARY TO REACT TO PROBLEM AREAS ON A TIMELY BASIS HUNTWAY SAID QUARTERLY FINANCIAL STATEMENTS AND RELATED MANAGEMENT ANALYSIS INCLUDED IN 10Q REPORTS PREPARED BY MR HANSEN AND FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CONTAIN MISTATEMENTS AND A NUMBER OF IRREGULARITIES MR HANSEN WHO WAS FIRED LATE LAST YEAR DIDN'T RETURN A MESSAGE SEEKING COMMENT THAT WAS LEFT ON HIS HOME ANSWERING MACHINE HUNTWAY HAS SAID THAT IT BELIEVES MR HANSEN MAY HAVE WRITTEN CHECKS ON COMPANY ACCOUNTS FOR WHICH THERE WERE INSUFFICIENT FUNDS THERE IS NO CURRENT EVIDENCE HOWEVER THAT ANY FUNDS WERE IMPROPERLY DIVERTED FROM HUNTWAY FOR THE PERSONAL BENEFIT OF ANY OFFICERS OR EMPLOYEES THE COMPANY HAS SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HUNTWAY UNITS WERE QUOTED AT 150 DOWN 25 CENTS 9303030144 930303 INTERNATIONAL BANESTO NET CONSOLIDATED PROFIT MADRID SPAIN'S BANCO ESPANOL DE CREDITO KNOWN AS BANESTO SAID NET CONSOLIDATED PROFIT INCLUDING RESULTS FROM ITS INDUSTRIAL HOLDING GROUP CORPBANESTO PLUNGED 62 IN 1992 TO 1836 BILLION PESETAS 1547 MILLION FROM 4852 BILLION PESETAS IN 1991 BANESTO ATTRIBUTED THE DECLINE MOSTLY TO ONETIME LOSSES IT ALSO SAID PROVISIONS FOR BAD AND DOUBTFUL LOANS JUMPED 20 TO 9756 BILLION PESETAS IN 1992 FROM 8155 BILLION PESETAS A YEAR EARLIER 9303030143 930303 FINANCING BUSINESS INTERCITY PRODUCTS CORP INTERCITY PRODUCTS CORP TORONTO SAID ITS US SUBSIDIARY INCREASED THE SIZE OF A PREVIOUSLY ANNOUNCED ISSUE OF SENIOR SECURED 975 NOTES TO US140 MILLION FROM 125 MILLION THE NOTES WHICH BECOME DUE ON MARCH 1 2000 WERE PRICED AT PAR THE NOTES ARE NONCALLABLE FOR FIVE YEARS THEY WERE PRICED THROUGH CITICORP SECURITIES MARKETS INC INTERCITY PRODUCTS MAKES AIR CONDITIONERS AND FURNACES THE PROCEEDS OF THE ISSUE WILL BE USED TO REPAY EXISTING DEBT IT SAID 9303030142 930303 WORLD MARKETS STOCKS IN TOKYO SLIP IN THIN TRADING FINISH MIXED TO LOWER IN LONDON EASE IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO SLIPPED TUESDAY IN THIN DIRECTIONLESS TRADING LONDON SHARES FINISHED MIXED TO LOWER FRANKFURT EQUITIES EASED IN A CONSOLIDATION IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 7375 POINTS MONDAY SOFTENED 1535 TO 1686425 ON WEDNESDAY IN TOKYO THE NIKKEI INDEX ROSE 7094 POINTS TO CLOSE THE MORNING SESSION AT 1693519 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES UP FROM 1942 MILLION SHARES ON MONDAY LOSERS TROUNCED GAINERS 584377 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 796 POINTS MONDAY ADDED 043 TO 127582 TELECOMMUNICATIONS AND RELATED SHARES CONTINUED TO BUCK THE MARKET TREND ON SPECULATION THAT THE SECTOR WILL BENEFIT FROM STEPPEDUP JAPANESE GOVERNMENT INVESTMENT IN THE TELECOMMUNICATIONS INFRASTRUCTURE THE NIKKEI INDEX SLID AT THE OPENING ON SELLING BY ARBITRAGERS AND INVESTMENT TRUSTS BUT BOUNCED BACK AFTER FALLING BELOW A PERCEIVED TECHNICAL SUPPORT LEVEL OF 16800 DURING THE FIRST HALFHOUR OF TRADING THEN SPENT THE REST OF THE SESSION GROPING FOR DIRECTION PUBLIC PENSION FUNDS WERE QUIET THE NIKKEI SEEMED TEMPORARILY TRAPPED BETWEEN 16800 AND 17000 AT LEAST UNTIL LATE THIS WEEK WHEN THE DIET OR PARLIAMENT IS EXPECTED TO PASS THE BUDGET FOR THE FISCAL YEAR STARTING APRIL 1 AND INVESTORS WERE HOPING FOR A STIMULATIVE SUPPLEMENTARY BUDGET PACKAGE MOREOVER TECHNICAL PRESSURES LOOM SUCH AS SPECIAL QUOTATIONS OF QUARTERLY FUTURES AND OPTIONS WHICH COULD RESULT IN HEAVY SELLING PRESSURE ON STOCKS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 03 POINT TO 28823 WITH ADVANCING ISSUES NARROWLY OUTNUMBERING DECLINING ISSUES 4844 THE FT 30STOCK INDEX ROSE 78 POINTS TO 22333 VOLUME WAS 573 MILLION SHARES COMPARED WITH 5352 MILLION SHARES A DAY EARLIER LONDON STOCKS WERE WEAK THROUGHOUT THE SESSION BUT DID MANAGE TO CLIMB FROM LOWS LATE IN THE DAY WITHOUT ANY BUYING IMPETUS THE MARKET WAS PRESSURED BY TECHNICAL RESISTANCE AT CERTAIN INDEX LEVELS AND BY WEAK EARNINGS RESULTS AMONG BANKS INSURANCE AND DRUG COMPANIES IN FRANKFURT THE DAX 30STOCK INDEX FELL 421 POINTS TO 169674 IN THE TECHNICAL PULLBACK THOUGH EQUITIES CONTINUED TO HAVE SUPPORT FROM HOPES FOR A CUT IN GERMAN INTEREST RATES THIS WEEK WHICH WAS AN UNDERLYING CURRENT IN SOME OTHER EUROPEAN BOURSES IN PARIS EARLY LOSSES WERE ERASED ON WALL STREET'S FIRMER OPENING TREND AND SHARES ENDED SLIGHTLY HIGHER AMSTERDAM PRICES WEAKENED PULLED DOWN BY SOME GLOOMY US ECONOMIC INDICATORS AND A DECLINING DOLLAR MILAN STOCKS ROSE ACROSS THE BOARD IN ACTIVE TRADING AS INVESTORS WARMLY WELCOMED THE ITALIAN GOVERNMENT'S DECISION TO ALLOW CREATION OF PRIVATE PENSION FUNDS WHICH IN TURN MEANS INSTITUTIONAL INVESTORS WITH BENEFITS PARTICULARLY TO INSURERS THE ITALIAN MOVE IS AIMED AT TAKING PRESSURE OFF THE DEFICITRIDDEN STATE PENSION SYSTEM AND BOOSTING THE COUNTRY'S FINANCIAL MARKETS IN PREPARATION FOR THE GOVERNMENT'S BIG PRIVATIZATION PROGRAM MADRID STOCKS FELL ON PROFITTAKING STOCKHOLM EQUITIES RETREATED LARGELY BECAUSE OF PROFITTAKING FOLLOWING THREE CONSECUTIVE ADVANCES AND A STRONG PERFORMANCE MOST OF LAST WEEK ZURICH PRICES ROSE ON STRENGTH AMONG INTERESTSENSITIVE ISSUES BANKING AND INSURANCE STOCKS GAINED AS INVESTORS MOVED OUT OF THE RECENTLY STRONG AND NOW STABLE BOND MARKETS INTO THE STOCK MARKET SYDNEY SHARES ADDED TO SHARP DAYEARLIER GAINS WHEN A NARROWERTHANEXPECTED AUSTRALIAN CURRENTACCOUNT DEFICIT AND EXPECTATIONS OF LOWER INTEREST RATES SENT PRICES SOARING INVESTORS SOUGHT HIGHYIELDING STOCKS TO COUNTER DECLINING YIELDS ON BONDS AND BANKING SHARES CONTINUED TO RALLY IN SINGAPORE SHARES FELL BROADLY AS PROFITTAKING STRETCHED INTO A FOURTH CONSECUTIVE SESSION BLUE CHIPS WERE MOSTLY SOLD OFF AS INVESTORS TRIMMED THEIR SINGAPORE HOLDINGS AHEAD OF CORPORATE EARNINGS REPORTS HONG KONG STOCKS FELL AS EUPHORIA ABOUT MORE SINOBRITISH TALKS SUBSIDED ON SUGGESTIONS THAT DEEP DIVISIONS REMAIN ON THE COLONY'S FUTURE INCLUDING DEMOCRATIC REFORM PROPOSALS THE TERRITORY'S BUDGET STATEMENT SCHEDULED FOR TODAY WASN'T EXPECTED TO HOLD ANY SURPRISES FOR THE MARKET IN TAIPEI AFTER A FOURSESSION RALLY PRICES DROPPED SHARPLY ON HEAVY PROFITTAKING MANILA SHARES RETREATED AS PROFITTAKING CONTINUED FOR A SECOND SESSION FOLLOWING TWO WEEKS OF GAINS SEOUL STOCKS FELL FOR THE FIFTH SESSION IN A ROW AS INVESTORS WERE UNNERVED ON THE SIDELINES BY THE SPREAD OF REFORM ENTHUSIASM STEMMING FROM THE NEW SOUTH KOREAN GOVERNMENT'S GOALS AND CASH WAS DRAINING QUICKLY OUT OF THE MARKET AMONG CORPORATE DEVELOPMENTS IN LONDON GENERAL ACCIDENT FELL 10 PENCE OR 17 TO 585 PENCE 841 THE SCOTTISH INSURER'S 1992 PRETAX LOSS NARROWED TO 293 MILLION 421 MILLION FROM THE YEAREARLIER DEFICIT OF 1716 MILLION AS BRITISH UNDERWRITING LOSSES WERE HALVED AND INVESTMENT INCOME PICKED UP GENERAL ACCIDENT MAINTAINED ITS DIVIDEND AT 2675 PENCE A SHARE AND ANNOUNCED A SECOND PREFERENCESHARE ISSUE VALUED AT 110 MILLION FISONS LOST 7 OR 3 TO 222 PRETAX PROFIT FOR 1992 FELL 24 TO 1236 MILLION FROM THE YEAREARLIER 1626 MILLION RESTATED FROM 1905 MILLION FOR AN ACCOUNTING CHANGEBECAUSE OF DETERIORATION OF PROFIT MARGINS IN PHARMACEUTICALS AND SCIENTIFIC EQUIPMENT THOUGH THE RESULTS DID EXCEED EXPECTATIONS ALSO THE RISE IN THE DOLLAR'S VALUE INCREASED THE STERLING VALUE OF THE COMPANY'S HEAVY DEBT YET FISONS SAID IT SAW SOME SIGNS OF RECOVERY IN THE SECOND HALF ALLIED IRISH BANKS CLIMBED 9 OR 44 TO 215 THE BANK IRELAND'S LARGEST SAID PRETAX PROFIT FOR THE NINE MONTHS ENDED DEC 31 TOTALED 1716 MILLION IRISH POUNDS OR PUNTS 252 MILLION FAR HIGHER THAN ANALYSTS HAD EXPECTED IT POSTED NINEMONTH EARNINGS IN CHANGING ITS FISCAL YEAR TO A CALENDARYEAR BASIS THUS DIRECT YEAREARLIER COMPARISONS WEREN'T AVAILABLE IN PARIS CIE DE SUEZ FELL 24 FRENCH FRANCS TO 3005 FRANCS 5352 AHEAD OF A PROVISIONAL EARNINGS REPORT THE BIG FINANCIAL CONCERN TODAY IS EXPECTED TO ANNOUNCE A HEFTY NET LOSS FOR 1992 REFLECTING LARGE PROVISIONS ANTICIPATED AGAINST SUEZ'S BATTERED REAL ESTATE PORTFOLIO BUT ANALYSTS SAID SUCH A WRITEOFF WOULD BE WELCOMED AS A SERIOUS EFFORT BY SUEZ'S MANAGERS TO SET THEIR HOUSE IN ORDER 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 9303030141 930303 CREDIT RATINGS ITALY'S FOREIGN DEBT GETS LOWER RATING BY STANDARD & POOR'S LONDON STANDARD & POOR'S CORP LOWERED ITS IMPLIED RATING ON ITALY'S LONGTERM SENIOR FOREIGN CURRENCY DEBT TO DOUBLEA FROM DOUBLEAPLUS AND REVISED ITS OUTLOOK TO STABLE FROM NEGATIVE THE IMPLIED SINGLEA1PLUS RATING ON ITALY'S SHORTTERM DEBT IS AFFIRMED S&P SAID THE DOWNGRADING REFLECTS EROSION OF CONFIDENCE IN THE GOVERNMENT'S ABILITY TO MEET ITS BUDGET REFORM TIMETABLE AND PRIVATIZATION OBJECTIVES IT SAID THE WIDESPREAD CORRUPTION INVESTIGATIONS TAKING PLACE HAVE SERIOUSLY UNDERMINED CONFIDENCE IN THE GOVERNING COALITION INTENSIFYING PRESSURE TO REFORM THE COUNTRY'S ELECTORAL SYSTEM RAPID AND SUSTAINED FISCAL ADJUSTMENT WILL BE DIFFICULT TO ACHIEVE DUE TO THE ECONOMIC SLOWDOWN BUT IS NECESSARY IN ORDER TO ARREST THE TREND OF DETERIORATION IN ITALY'S EXTERNAL FINANCES S&P SAID IT ADDED THAT ITALY'S VERY STRONG RATINGS AND STABLE OUTLOOK REFLECT THE NATIONAL ECONOMY'S WEALTH AND DIVERSITY ITS MANAGEABLE BURDEN OF FOREIGN DEBT AND ADEQUATE EXTERNAL PAYMENTS POSITION 9303030140 930303 WHO'S NEWS PENN TRAFFIC CO PENN TRAFFIC CO JOHNSTOWN PA MARTIN A FOX 39 YEARS OLD WAS NAMED VICE CHAIRMAN AND A DIRECTOR OF THIS FOOD RETAILER INCREASING THE BOARD TO EIGHT MEMBERS THE VICE CHAIRMAN POST IS NEW MR FOX REMAINS IN HIS POSTS AS VICE PRESIDENT OF PENN TRAFFIC AND VICE PRESIDENT AND A DIRECTOR OF GRAND HOLDINGS CORP THE PARENT COMPANY OF GRAND UNION CO GRAND UNION IS A CLOSELY HELD 300STORE SUPERMARKET CHAIN BASED IN WAYNE NJ PENN TRAFFIC OWNS ABOUT A 20 STAKE IN GRAND HOLDINGS 9303030139 930303 WHO'S NEWS USG CORP USG CORP CHICAGO EUGENE B CONNOLLY 60YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THIS MAKER OF BUILDING PRODUCTS EFFECTIVE APRIL 1 HE SUCCEEDS ANTHONY J FALVO 62 WHO WILL ASSUME THE POST OF VICE CHAIRMAN AND HAS INDICATED A DESIRE TO RETIRE IN EARLY 1994 9303030138 930303 WHO'S NEWS CONTINENTAL CORP CONTINENTAL CORP NEW YORK JIM MACDONALD 43 YEARS OLD JOINED THIS PROPERTY/CASUALTY INSURER AS SENIOR VICE PRESIDENT IN THE SPECIAL OPERATIONS GROUP A NEW POSITION MR MACDONALD WAS PRESIDENT OF THE GENERAL CASUALTY GROUP OF AMERICAN INTERNATIONAL GROUP INC'S AMERICAN HOME UNIT MR MACDONALD WILL OVERSEE MARKETING AND BUSINESS DEVELOPMENT FOR THE SPECIAL OPERATIONS GROUP'S SEVEN BUSINESS UNITS WENDY BAKER 39 WAS NAMED SENIOR VICE PRESIDENT MARKETING AND BUSINESS DEVELOPMENT SPECIAL OPERATIONS SUCCEEDING JOE HAMILTON WHO WAS TRANSFERRED TO THE CASUALTY INSURANCE UNIT IN CHICAGO MS BAKER WAS PRESIDENT OF CONTINENTAL RE NEW YORK THE COMPANY'S REINSURANCE UNIT ALAN PRITZ 38 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF UNDERWRITING OFFICER FOR SPECIAL OPERATIONS SUCCEEDING TIMOTHY MITCHELL WHO WAS ASSIGNED TO THE RISK MANAGEMENT SERVICES UNIT MR PRITZ WAS EXECUTIVE VICE PRESIDENT DEPARTMENTAL PRODUCTS AND UNDERWRITING FOR CONTINENTAL EXCESS & SELECT MR HAMILTON AND MR MITCHELL ARE EXECUTIVE VICE PRESIDENTS 9303030137 930303 MARKETING & MEDIA HOUSE APPROVES MEASURE ON RADIO SPECTRUM SHIFT WASHINGTON THE HOUSE VOTED 4105 TO APPROVE A BILL TO TRANSFER TO THE PRIVATE SECTOR A SIZABLE PORTION OF THE RADIO SPECTRUM CURRENTLY ASSIGNED TO GOVERNMENT AGENCIES THE LEGISLATION SPONSORED BY ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL D MICH AND CHAIRMAN EDWARD MARKEY D MASS OF THE TELECOMMUNICATIONS PANEL WOULD REQUIRE THE COMMERCE DEPARTMENT TO IDENTIFY 200 MEGAHERTZ OF THE GOVERNMENT SPECTRUM THAT COULD BE TRANSFERRED TO COMMERCIAL USE THE BILL WHICH IS SIMILAR TO MEASURES THE HOUSE APPROVED IN THE TWO PREVIOUS SESSIONS OF CONGRESS WOULD REQUIRE THE DEPARTMENT TO IDENTIFY 30 MEGAHERTZ THAT COULD BE TRANSFERRED RELATIVELY QUICKLY THE CLINTON ADMINISTRATION HAS RAISED CONCERNS ABOUT THE BILL MAINLY BECAUSE IT WOULDN'T GIVE THE FEDERAL COMMUNICATIONS COMMISSION AUTHORITY TO USE COMPETITIVE BIDDING TO ASSIGN THE SPECTRUM THE ADMINISTRATION IS COUNTING ON SPECTRUM AUCTIONS TO RAISE ABOUT 44 BILLION FROM FISCAL 1995 THROUGH 1998 REPS DINGELL AND MARKEY HAVE PROMISED THAT AUCTION AUTHORITY WILL BE ADDRESSED IN A SEPARATE BILL THE SENATE IS EXPECTED TO CONSIDER A SIMILAR MEASURE LATER THIS MONTH THE SENATE BILL CONTAINS A PROVISION FOR AN EXPERIMENTAL AUCTION OF 30 MEGAHERTZ OF SPECTRUM 9303030136 930303 INTERNATIONAL CHINA'S ENTRY INTO GATT IS STALLED BY THORNY SOCIALIST MARKET ECONOMY' BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING US OFFICIALS SAID TALKS AIMED AT BRINGING CHINA INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE ARE STALLED BECAUSE BEIJING REFUSES TO ADDRESS A BASIC QUESTION JUST WHAT IS A SOCIALIST MARKET ECONOMY CHIEF US NEGOTIATOR W DOUGLAS NEWKIRK SAID THAT FOR THIS REASON HIS TWO DAYS OF TALKS WITH CHINESE OFFICIALS WENT SO BADLY THAT THE PROCESS COULD TAKE YEARS DESPITE CHINA'S PRONOUNCEMENTS ABOUT JOINING GATT WITHIN MONTHS I AM GOING TO BE RETIRED IN SEVEN YEARS AND I AM NOT SURE I AM GOING TO BE ABLE TO WRAP IT UP AT THE CURRENT PACE SAID MR NEWKIRK AN ASSISTANT US TRADE REPRESENTATIVE THE TALKS WERE THE FIRST FORMAL DISCUSSIONS ABOUT CHINA'S GATT BID SINCE NEGOTIATORS LEFT THAT COUNTRY IN JUNE 1989 TWO DAYS BEFORE SOLDIERS SLAUGHTERED DEMONSTRATORS IN BEIJING THE PROCESS WAS SIDELINED UNTIL FEBRUARY 1992 WHEN CHINESE OFFICIALS AND A WORKING GROUP IN GENEVA EXCHANGED WRITTEN QUESTIONS AND ANSWERS THIS WORKING GROUP LED BY THE US IS ASSIGNED TO HELP CHINA DRAFT A PROTOCOL OF ACCESSION THAT WOULD ALLOW IT TO BECOME A GATT SIGNATORY THE GATT AGREEMENTS SIGNED BY 105 COUNTRIES AND TERRITORIES PROMOTE FREE TRADE BY REDUCING TARIFFS AND ENDING NONTARIFF BARRIERS MR NEWKIRK SAID THAT DURING THE BEIJING NEGOTIATIONS WHICH ENDED YESTERDAY CHINA ACTUALLY RETREATED FROM PLEDGES IT MADE IN 1989 HE SAID THE FRAMEWORK FOR CHINA'S PROTOCOL INCLUDED FIVE MAIN POINTS A UNIFIED NATIONAL TRADE POLICY TRANSPARENT TRADING RULES ELIMINATION OF NONTARIFF BARRIERS COMMITMENT TO A MARKET ECONOMY AND A SYSTEM TO SAFEGUARD GATT SIGNATORIES FROM A SURGE OF CHINESE EXPORTS TO THEIR COUNTRIES MR NEWKIRK SAID CHIEF CHINESE NEGOTIATOR TONG ZHIGUANG A VICE MINISTER OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE NOW REFUSES TO ACCEPT THE LAST TWO CATEGORIES HE SAID CHINA INSISTS THAT BECAUSE IT HAS REDUCED TARIFFS REFORMED MANY STATESET PRICES AND EXPANDED ITS PRIVATE SECTOR SINCE 1989 ITS ECONOMY IS ALREADY CLOSE ENOUGH TO GATT STANDARDS TO DO WITHOUT SUCH CLAUSES BEFORE THE TALKS BEGAN MR TONG WAS QUOTED IN OFFICIAL NEWSPAPERS AS SAYING CHINA IS CAPABLE OF SHOULDERING THE OBLIGATIONS SET BY GATT AS CHINA HAS MOVED SIGNIFICANTLY TO EMBRACE A MARKETORIENTED ECONOMY IN THE PAST YEARS LAST YEAR CHINA CHANGED THE LABEL IT APPLIES TO ITS HYBRID ECONOMIC SYSTEM TO A SOCIALIST MARKET ECONOMY FROM A SOCIALIST COMMODITY ECONOMY BUT ITS COMMUNIST LEADERS HAVE YET TO DEFINE WHAT THAT MEANS PROBABLY BECAUSE IT RAISES IDEOLOGICAL QUESTIONS ABOUT WHETHER CHINA'S ORIENTATION WILL BE CAPITALIST OR SOCIALIST THE GATT PROTOCOL WOULD FORCE BEIJING TO PROMISE SPECIFIC ACTIONS AIMED AT MAKING ITSELF A MARKET ECONOMY WE ARE TRYING TO WRITE A PROTOCOL THAT WORKS AROUND THE PROBLEM OF NOT HAVING A MARKET PRICE SYSTEM SAID MR NEWKIRK THAT IS FUNDAMENTALLY THE PROBLEM UNDER A MARKET PRICE SYSTEM THE OPEN MARKET SETS PRICES NOT THE STATE IT ISN'T CLEAR IF CHINA'S STANCE REFLECTS A CHANGE OF POLICY A NEGOTIATING PLOY OR POLITICAL INDECISION SINCE SIGNING A WIDERANGING TRADE AGREEMENT WITH THE US IN OCTOBER THE COUNTRY HAS MADE IMPASSIONED ARGUMENTS ABOUT WHY IT IS IMPORTANT TO QUICKLY JOIN GATT IN TWO WEEKS CHINA'S RUBBERSTAMP NATIONAL PEOPLE'S CONGRESS BEGINS A TWOWEEK SESSION AT WHICH SOCIALIST MARKET ECONOMY IS SUPPOSED TO BE WRITTEN INTO THE CONSTITUTION ANALYSTS SAY CHINA'S GATT NEGOTIATORS MAY NOT HAVE THE POLITICAL BACKING FOR ANY MAJOR COMMITMENTS UNTIL THAT SESSION ENDS THE PROSPECT OF JOINING GATT IS ALREADY DISRUPTING CHINA'S ECONOMY GOVERNMENT FOREIGNEXCHANGE MARKETS NOW OFFER AT LEAST A 50 PREMIUM ON EXCHANGES OF US CURRENCY OVER THE OFFICIAL RATE OF 58 YUAN TO THE DOLLAR ALTHOUGH CHINA DENIES THEM RUMORS ABOUND THAT A DEVALUATION IS IMMINENT ALLEGEDLY BECAUSE GATT WILL FORCE CHINA TO MAKE THE YUAN CONVERTIBLE AS A RESULT FOREIGN BUSINESSES WHO ARE OWED DOLLARS BY CHINESE COMPANIES ARE COMING UP EMPTYHANDED EVERYBODY WANTS TO HOLD ONTO DOLLARS AND MANY CUSTOMERS ARE REFUSING TO PAY US UNLESS WE WILL ACCEPT RENMINBI SAYS THE MANAGER OF A FOREIGN EQUIPMENTLEASING COMPANY AT THE SAME TIME SOME CHINESE COMPANIES AND CONSUMERS ARE PUTTING OFF BIG PURCHASES IN THE HOPE THAT GATT WILL REDUCE IMPORT TARIFFS AND QUICKLY SLASH PRICES FOR BOTH LOCAL AND IMPORTED GOODS BEIJING JEEP CO A CHRYSLER CORP JOINT VENTURE HAS ALWAYS HAD A WAITING LIST FOR THE CHEROKEE VEHICLES IT ASSEMBLES IN CHINA FROM IMPORTED AND LOCAL PARTS UNTIL NOW LAST MONTH WE SOLD LESS THAN FIVE DAYS OF OUR FACTORY'S OUTPUT A COMPANY OFFICIAL SAID GATT SIGNATORIES WANT CHINA TO AGREE TO A SAFEGUARD SYSTEM THAT WILL ALLOW THEM TO ENACT EMERGENCY QUOTAS AND TARIFFS SHOULD THEY FACE A SUDDEN ONSLAUGHT OF CHINESE GOODS THEY WANT THIS PROVISION WHICH WOULD BE UNIQUE IN GATT BECAUSE THEY FEAR THAT CHINA'S LINGERING SOCIALISM AND ECONOMIC CLOUT WILL COMBINE TO SUBSIDIZE EXPORTS UNFAIRLY THE GATT WASN'T WRITTEN WITH A SOCIALIST MARKET ECONOMY IN MIND SAID MR NEWKIRK SO WE NEED A VERY DETAILED VERY COMPLEX PROTOCOL TO BRING THE TWO EXTREMES OF A SOCIALIST MARKET ECONOMY AND A CAPITALIST ECONOMY TO A POINT WHERE THERE IS AT LEAST A COMPARABLE LEVEL OF OBLIGATIONS TALKS ARE SCHEDULED TO CONTINUE IN GENEVA AT MIDMONTH 9303030135 930303 TREASURY DISAVOWS ADS TOUTING TAXFREE BONDS WASHINGTON THE TREASURY DEPARTMENT IS DISAVOWING RECENT ADVERTISEMENTS TOUTING SERIES EE US SAVINGS BONDS AS TAX FREE FOR COLLEGE THE TREASURY WITHDREW ITS TAX FREE FOR COLLEGE ADS IN LATE 1991 IN RESPONSE TO COMPLAINTS THAT THEY WERE MISLEADING SERIES EE SAVINGS BONDS ARE TAXEXEMPT FOR COLLEGE ONLY IF THE PROCEEDS ARE USED FOR QUALIFIED EDUCATIONAL EXPENSES AND THE HOLDER'S FAMILY INCOME IS WITHIN SPECIFIED LIMITS THE RECENT REAPPEARANCE OF THESE ADS IN VARIOUS PUBLICATIONS DOESN'T SIGNIFY A CHANGE IN POLICY BUT REFLECTS THE FACT THAT SUCH FREE PUBLICSERVICE ADS ARE HARD TO KILL ONCE THEY'VE BEEN RELEASED SAID DAVID STARCK ADVERTISING MANAGER FOR THE TREASURY'S SAVINGS BOND DIVISION MR STARCK STRESSED THAT THE TREASURY STANDS BY THE POLICY ARTICULATED IN LATE 1991 THAT IT HAD CEASED PUBLISHING SMALL SPACE PRINT ADVERTISEMENTS CONTAINING UNQUALIFIED STATEMENTS THAT THE BONDS ARE TAX FREE FOR EDUCATION AND HAD ASKED PUBLICSERVICE DIRECTORS OF BROADCAST STATIONS TO STOP AIRING ADS NOT CLEARLY STATING THAT LIMITATIONS APPLY OUR MESSAGE NOW IS THERE ARE RESTRICTIONS AND OUR NEW ADS POINT THAT OUT SAID MR STARCK HE SAID PUBLICATIONS THAT MISTAKENLY RAN THE OLD ADS ARE REMINDED THAT THOSE ADS WERE WITHDRAWN 9303030134 930303 WHO'S NEWS TALIGENT INC TALIGENT INC CUPERTINO CALIF JACK KUEHLER 60 YEARS OLD A DIRECTOR AND VICE CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP WAS NAMED TO THE BOARD OF THIS SOFTWARE COMPANY JOINTLY OWNED BY IBM AND APPLE COMPUTER INC HE SUCCEEDS IBM SENIOR VICE PRESIDENT M BERNARD PUCKETT MR KUEHLER WAS ONE OF THE MAIN ARCHITECTS OF THE ALLIANCE BETWEEN IBM AND APPLE A MAKER OF PERSONAL COMPUTERS ALSO BASED IN CUPERTINO CALIF 9303030133 930303 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND ANTHONY N MCEWEN 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT RESPONSIBLE FOR THIS FINANCIAL SERVICE COMPANY'S RETAIL PRODUCT MANAGEMENT NEWPRODUCT DEVELOPMENT AND PRODUCT RESEARCH MR MCEWEN WAS PREVIOUSLY VICE PRESIDENT FOR RETAIL PRODUCT DEVELOPMENT HE RETAINS HIS TITLE AS PRESIDENT OF NATIONAL CITY'S NATIONAL CITY LIFE INSURANCE UNIT 9303030132 930303 WHO'S NEWS EASTERN ENTERPRISES EASTERN ENTERPRISES WESTON MASS RICHARD R CLAYTON 54 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS NATURAL GAS AND INLAND MARINE TRANSPORTATION CONCERN WAS NAMED A TRUSTEE EXPANDING THE BOARD TO 13 MEMBERS 9303030131 930303 RUSSIA TO JOIN US EFFORT TO DROP AID INTO BOSNIA WASHINGTON RUSSIA HAS DECIDED TO JOIN THE US IN AIRDROPPING RELIEF SHIPMENTS TO BOSNIA AND IS HOPING TO USE NORTH ATLANTIC TREATY ORGANIZATION AIR BASES FOR THE MISSION SPEAKING IN MOSCOW YESTERDAY FOREIGN MINISTER ANDREI KOZYREV SAID THE JOINT USRUSSIAN RELIEF EFFORT WOULD SIGNIFY SUCCESSFUL INTERNATIONAL COOPERATION UNDER THE AEGIS OF THE UNITED NATIONS IN SETTLING THE YUGOSLAV CONFLICT RUSSIAN PARTICIPATION FIRST IN DIPLOMATIC NEGOTIATIONS AND NOW IN THE RELIEF EFFORT HAS BEEN A KEY ELEMENT OF THE CLINTON ADMINISTRATION'S STRATEGY TO SETTLE THE BLOODY CONFLICT IN THE FORMER YUGOSLAVIA THE US IS HOPING THAT MOSCOW WILL PERSUADE ITS LONGTIME ALLY SERBIA TO CURB ITS TERRITORIAL AMBITIONS AND SEEK AN ACCEPTABLE AND MILITARILY ENFORCEABLE PEACE AGREEMENT WITH RUSSIAN PLANES FLYING RELIEF MISSIONS OVER BOSNIA THE US ALSO HOPES TO LESSEN THE CHANCES OF SERBIAN MILITARY RETALIATION TO DEMONSTRATE THEIR EVENHANDEDNESS AND THE NONMILITARY NATURE OF THE MISSION THE US IS AIRDROPPING RELIEF TO ALL THREE ETHNIC FACTIONS IN BOSNIA EARLY REPORTS SUGGEST THAT THE INITIAL AIRDROPS HAVE HAD ONLY LIMITED SUCCESS IN REACHING THEIR TARGETS 9303030130 930303 WHO'S NEWS PUGET SOUND POWER & LIGHT CO PUGET SOUND POWER & LIGHT CO BELLEVUE WASH PHYLLIS J CAMPBELL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF US BANK OF WASHINGTON WAS ELECTED A DIRECTOR OF THIS UTILITY THE ELECTION OF MS CAMPBELL 41 YEARS OLD INCREASES THE BOARD TO 11 9303030129 930303 WHO'S NEWS PIEDMONT NATURAL GAS CO PIEDMONT NATURAL GAS CO CHARLOTTE NC MURIEL W HELMS PRESIDENT OF THE CHARLOTTE AREA OF PRUDENTIAL CAROLINAS REALTY WAS ELECTED A DIRECTOR OF THIS GAS COMPANY AT THE SAME TIME TWO DIRECTORS RETIRED ELISABETH G HAIR AND ROGER W SOLES AS A RESULT THE BOARD HAS BEEN REDUCED TO 10 MEMBERS FROM 11 9303030128 930303 WHO'S NEWS PENNZOIL CO PENNZOIL CO HOUSTON BRENT SCOWCROFT WAS NAMED TO THE BOARD OF THIS OIL COMPANY MR SCOWCROFT 67 YEARS OLD WAS FORMERLY ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS HIS APPOINTMENT BRINGS THE BOARD SIZE TO 15 MEMBERS 9303030127 930303 TUESDAY'S MARKETS STOCKS SOAR DESPITE DATA ON HOUSING BUYING SPREE FOLLOWS RETAIL SALES REPORT BONDS EDGE HIGHER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK MARKET INVESTORS IGNORED SOME MIXED ECONOMIC NEWS AND DROVE PRICES SHARPLY HIGHER AND NEAR ALLTIME HIGHS FOR SOME INDEXES BOND PRICES EDGED HIGHER AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SOARED 4512 TO 340053 STANDARD & POOR'S 500STOCK INDEX GAINED 589 TO 44790 PLACING IT WITHIN STRIKING DISTANCE OF ITS ALLTIME HIGH OF 44956 THE NASDAQ COMPOSITE INDEX JUMPED 821 TO 67772 TRADING BEGAN ON A WEAK NOTE WITH THE DOW JONES INDUSTRIALS SLIDING 10 POINTS AFTER THE COMMERCE DEPARTMENT REPORTED A 138 DROP IN NEWHOME SALES IN JANUARY THE LARGEST MONTHLY DECLINE IN 11 YEARS BUT BUYERS SOON RETURNED AND GAVE A POWERFUL BOOST TO THE INDUSTRIAL AVERAGE FOLLOWING A REPORT BY THE JOHNSON REDBOOK SERVICE A PRIVATE SURVEY THAT RETAIL SALES GREW 24 IN FEBRUARY FROM JANUARY JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO SAID THE STOCK MARKET IS RALLYING IN A DELAYED REACTION TO THE RECENT STRONG GAINS IN THE BOND MARKET HE ADDED THAT STOCKS ARE BOUND TO BENEFIT FROM INVESTORS LOOKING FOR HIGHER YIELDS AFTER THE GOVERNMENT OVER THE WEEKEND LOWERED THE GUARANTEED MINIMUM INTEREST RATES ON US SAVINGS BONDS TO 4 FROM 6 MR MCALINDEN EXPECTS STOCK PRICES TO CLIMB OVER THE NEXT SIX TO EIGHT WEEKS SETTING THE STAGE FOR A MAJOR CORRECTION RIGHT NOW WE THINK IT'S A TREMENDOUS OPPORTUNITY FOR THOSE WITH A SHORTTERM PERSPECTIVE TO PARTICIPATE IN SOME UPSIDE HE SAID BUT JUSTIN MAMIS MARKET TECHNICIAN AT HANCOCK INSTITUTIONAL EQUITY SERVICES ISN'T ENCOURAGED BY YESTERDAY'S REBOUND HE ARGUES THE STOCK MARKET ALREADY HAS ENTERED THE EARLY STAGES OF A BEAR MARKET THOUGH THE MAJOR INDEXES MAY BE MASKING THE DOWNTURN HE POINTS TO THE RECENT BATTERING OF SOME STOCK GROUPS SUCH AS DRUGS AS A SIGN THAT A BEAR PHASE IS UNDER WAY HE SUGGESTS THE BEAR MARKET WILL BECOME INCREASINGLY EVIDENT IN A STEPBYSTEP DEMOLITION OF STOCK SECTORS RATHER THAN IN HUGE TUMBLES IN THE MAJOR INDEXES THE AVERAGES DON'T HAVE TO COME DOWN VERY FAR TO ACCOMPLISH A BEAR MARKET THROUGH GROUP ROTATION MR MAMIS SAID IT'S DIFFERENT THIS TIME IT'S A MUCH LONGER MUCH SLOWER MUCH LESS MONOLITHIC EXPERIENCE THAN WE'VE HAD BEFORE WITH STOCK PRICES RELATIVELY HIGH AND STOCK MARKET RISK RISING MR MAMIS SAID THE MEAGER 3 RETURNS ON CASH ARE BEGINNING TO LOOK ATTRACTIVE WHAT'S SO TERRIBLE ABOUT MAKING 3 ON YOUR MONEY ESPECIALLY SINCE YOU COULD LOSE QUITE A BIT IN THIS MARKET HE SAID I'M WILLING TO PARK SOME MONEY AT 3 UNTIL STOCKS COME DOWN TO PRICES I'M WILLING TO BUY THEM AT ARTHUR A MICHELETTI CHIEF ECONOMIST AND INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF PREDICTED THE S&P 500 COULD TUMBLE 7 TO 10 STARTING IN COMING MONTHS IF INTEREST RATES AND INFLATION BEGIN TO PICK UP AS HE EXPECTS AS A RESULT HE SAID HE REDUCED HIS HOLDINGS OF US STOCKS AND ADDED TO HIS STOCK INVESTMENTS OVERSEAS PARTICULARLY IN EUROPE AND SOUTHEAST ASIA EVEN IF INTEREST RATES DRIFT LOWER IN THE US THE BEST OPPORTUNITIES ARE STILL OVERSEAS MR MICHELETTI SAID WE HAVE FURTHER TO GO IN RATE CUTS OVERSEAS AND WE'RE MOVING INTO A GLOBAL ECONOMIC RECOVERY PHASE WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX CLIMBED 103 TO 9606 IN MAJOR MARKET ACTION STOCK PRICES SOARED VOLUME TOTALED 269640000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1273 ISSUES ROSE AND 656 FELL BOND PRICES INCHED HIGHER THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 683 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16395 MARKS AND 11760 YEN COMPARED WITH 16546 MARKS AND 11874 YEN MONDAY 9303030126 930303 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/8 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 3 30 TO 34 DAYS 310 35 TO 59 DAYS 308 60 TO 119 DAYS 310 120 TO 149 DAYS 313 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 315 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 267 THREE MONTHS 278 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 310 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 302 90 DAYS 304 120 DAYS 306 150 DAYS 307 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 650 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 305 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 722 60 DAYS 732 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 721 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303030125 930303 CANADIAN PULP OUTPUT HELD STEADY IN JANUARY MONTREAL CANADIAN PRODUCTION OF MARKET PULP WAS UNCHANGED IN JANUARY FROM A YEAR EARLIER WHILE SHIPMENTS FELL 67 THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 624000 METRIC TONS OF MARKET PULP IN JANUARY A METRIC TON IS 22046 POUNDS THE JANUARY 90 OPERATING RATE WAS UP FROM 88 IN DECEMBER BUT DOWN FROM 92 A YEAR EARLIER TOTAL MARKET SHIPMENTS IN JANUARY FELL TO 511000 METRIC TONS FROM 548000 METRIC TONS A YEAR EARLIER SHIPMENTS TO THE US ROSE 17 TO 201000 METRIC TONS FROM 172000 A YEAR EARLIER WHILE SHIPMENTS TO WESTERN EUROPE FELL 12 TO 143000 METRIC TONS FROM 163000 SHIPMENTS TO JAPAN FELL 24 TO 60000 METRIC TONS FROM 79000 A YEAR EARLIER WITHIN CANADA SHIPMENTS ROSE 8 TO 55000 METRIC TONS FROM 51000 CANADIAN PRODUCER INVENTORIES AT THE END OF JANUARY WERE 750000 METRIC TONS A 42DAY SUPPLY COMPARED WITH 657000 METRIC TONS A 38DAY SUPPLY A YEAR EARLIER MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL 9303030124 930303 YIELDS ON MOST CDS EASED IN LATEST WEEK NEW YORK YIELDS ON MOST CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS EASED IN THE WEEK ENDED YESTERDAY MOST LONGTERM CDS ARE NOW BELOW 5 THE LOWEST SINCE RATES PAID TO DEPOSITORS WERE DEREGULATED IN OCTOBER 1983 THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 273 FROM 276 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EDGED DOWN TO 495 FROM 498 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED DOWNWARD TO 305 FROM 308 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 483 FROM 493 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD FOR A SIXMONTH CERTIFICATE CREPT DOWN TO 277 FROM 278 ON FIVEYEAR JUMBOS THE AVERAGE EASED TO AN EVEN 5 FROM 503 ACCORDING TO BANXQUOTE 9303030123 930303 TREASURY TO PAY DOWN 450 MILLION OF DEBT WITH OFFERING OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 450 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2364 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JUNE 10 1993 AND SEPT 9 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794D43 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794F66 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9303030122 930303 INTERNATIONAL GPA'S OFFER OF 1 SHARES REFLECTS ITS FALL BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL GPA GROUP PLC HAS BEGUN THE NEXT STAGE OF ITS RECOVERY PLAN BY ASKING STOCKHOLDERS TO BUY 200 MILLION NEW SHARES AT ABOUT 1 EACH THE 1 SHARE PRICE CONFIRMED BY PEOPLE CLOSE TO THE SHANNON IRELANDBASED COMPANY COMPARES WITH THE 20 PRICE SET ON GPA SHARES FOR AN ABORTED INITIAL PUBLIC OFFERING LAST JUNE AND SHOWS HOW FAR THE AIRCRAFT LEASING COMPANY HAS FALLEN INDEED ONLY ONE YEAR AGO THE COMPANY'S SHARES WERE WIDELY VALUED AT 30 MEANWHILE A PERSON FAMILIAR WITH TALKS BETWEEN GPA AND ITS BANKERS SAID YESTERDAY THAT TWO OF THE COMPANY'S FOUR BANK GROUPS HAVE AGREED TO RESTRUCTURE THEIR LOAN AGREEMENTS THE PERSON WOULDN'T DISCLOSE HOW MUCH OF GPA'S TOTAL CREDIT LINES OF 27 BILLION IS REPRESENTED BY THE TWO BANKING GROUPS SIGNING OFF ON THE RESTRUCTURING PACT LONDON ANALYSTS REMAIN WARY OF GPA'S ABILITY TO WIN OVER THE SHAREHOLDERS WITH THE NEW ISSUE EVEN 1 A SHARE MAY SEEM COSTLY TO SOME STOCKHOLDERS SINCE THE BANK OF IRELAND SAID IN A RECENT COURT CASE THAT GPA SHARES USED AS COLLATERAL BY ONE OF THE COMPANY'S BOARD MEMBERS WERE UNSALEABLE I'LL BELIEVE THE SALE WHEN I SEE IT ONE INDUSTRY ANALYST SAID STILL THE FUNDRAISING EFFORT PRESENTS THE CRUCIAL LAST STEP IN GPA'S RESTRUCTURING EFFORT FOLLOWING THE FAILED INITIAL OFFERING AT THE TIME THE WORLD'S NO 1 AIRCRAFT LEASING COMPANY HOPED TO USE THE 1 BILLION FROM GOING PUBLIC TO STRENGTHEN ITS BALANCE SHEET AND HELP PAY FOR 12 BILLION IN AIRCRAFT ORDERS WHEN MARKETS IN NEW YORK LONDON AND TOKYO FAILED TO BUY UP THE SHARES GPA WAS LEFT WITH A MASSIVE LIQUIDITY PROBLEM THAT HAS PLAGUED THE GLOBAL AEROSPACE INDUSTRY EVER SINCE BUT DESPITE PREDICTIONS OF ITS COLLAPSE GPA SLOWLY HAS MOVED CLOSER TO SHORING UP ITS FINANCES GPA REPEATEDLY HAS VOWED TO RESOLVE ITS PROBLEMS BY THE END OF THIS MONTH THE COMPANY CHARTED A RESTRUCTURING COURSE THAT FIRST TOOK IT INTO TALKS WITH ITS AIRCRAFT SUPPLIERS AMONG THEM BOEING CO AIRBUS INDUSTRIE AND FOKKER NV HAVE AGREED TO SLASH GPA'S ORDERS OUTSTANDING TO LESS THAN 4 BILLION MCDONNELL DOUGLAS CORP HOWEVER CONTINUES TO RESIST GPA'S DESIRE TO DEFER ORDERS FOR 15 MD11 WIDE BODY JETS VALUED AT 15 BILLION THE SECOND STEP WAS THE BANKS GPA HAS ASKED A TOTAL OF 130 BANKS TO DEFER ABOUT 1 BILLION IN PRINCIPAL PAYMENTS ON LOANS UNTIL LATE 1996 AND TO RELAX FINANCIAL TERMS WHILE DEALS WITH ALL THE BANKS AREN'T COMPLETE THE FACT THAT TWO OF THE FOUR BANKING GROUPS HAVE SIGNED ON MAY INDICATE THE TALKS ARE GOING IN GPA'S FAVOR INDEED A GPA SPOKESMAN WAS UPBEAT YESTERDAY ABOUT THE BANK TALKS WE ARE QUITE ENCOURAGED BY THE POSITIVE RESPONSES SO FAR BY OUR LENDERS THE SPOKESMAN SAID BUT THE BANKING AGREEMENT HINGES ON THE COMPANY'S ABILITY TO RAISE THE 200 MILLION IN NEW EQUITY FROM SHAREHOLDERS PLANS TO RAISE MONEY BY ISSUING BONDS BACKED BY LARGE NUMBERS OF AIRCRAFT HAVE BEEN POSTPONED BECAUSE OF NEGATIVE MARKET SENTIMENT THE 1 PRICE FOR NEW GPA SHARES SURPRISED FEW INDUSTRY ANALYSTS FOR SEVERAL MONTHS GPA SHARES HAVE BROUGHT OFFERS OF BETWEEN 1 AND 4 ON THE DUBLIN GRAY MARKET AND ONE LONDON ANALYST SAID HE RECENTLY CONDUCTED A STUDY FOR A CLIENT THAT CONCLUDED THE SHARES COULD BE VALUED AT ANYWHERE BETWEEN 50 CENTS AND 4 THE FUNDRAISING EFFORT IS BEING COORDINATED BY NOMURA INTERNATIONAL PLC WHICH DECLINED TO COMMENT 9303030121 930303 ROYAL OAK MINES' WARRANTS VANCOUVER BRITISH COLUMBIA ROYAL OAK MINES INC SAID IT EXPECTS TO RAISE 252 MILLION CANADIAN DOLLARS US202 MILLION FROM THE SALE OF NINE MILLION SPECIAL WARRANTS AT C280 EACH A ROYAL OAK SPOKESMAN SAID THE COMPANY PLANS TO USE ABOUT C15 MILLION OF THE PROCEEDS TO REOPEN THE COLOMAC GOLD MINE IN THE NORTHWEST TERRITORIES ROYAL OAK EXPECTS TO COMPLETE THE ACQUISITION OF THE SHUTTERED MINE LATER THIS MONTH FROM A SUBSIDIARY OF NORTHGATE EXPLORATION LTD TORONTO FOR C10 MILLION IN NEW ROYAL OAK SHARES THE REST OF THE PROCEEDS FROM THE WARRANTS WILL BE USED FOR WORKING CAPITAL AND FUTURE ACQUISITIONS THE SPOKESMAN SAID 9303030120 930303 BUSINESS BRIEF PRITZKER UNIT PROPOSES REORGANIZATION TO CREDITORS OF INTEGRATED RESOURCES NEW YORK A REAL ESTATE COMPANY CONTROLLED BY THE PRITZKER FAMILY SAID IT CAN OFFER BETTER TERMS THAN THOSE ALREADY PROPOSED TO CREDITORS OF INTEGRATED RESOURCES INC TO GET INTEGRATED OUT OF BANKRUPTCYLAW PROCEEDINGS PENGUIN REALTY ASSOCIATES LP SAID THAT UNDER ITS PROPOSAL INTEGRATED'S SENIOR UNSECURED CREDITORS WOULD RECEIVE 51 CENTS ON THE DOLLAR FOR ALLOWED CLAIMS GENERAL UNSECURED CREDITORS WOULD BE OFFERED 30 CENTS ON THE DOLLAR FOR THEIR ALLOWED CLAIMS CHICAGOBASED PENGUIN'S PROPOSAL PROVIDES FOR IT TO ACQUIRE A MINIMUM 35 IN INTEGRATED'S REMAINING ASSETS INTEGRATED A REAL ESTATE MANAGEMENT CONCERN HAS LEASES WITH CORPORATE TENANTS AT VARIOUS BUILDINGS AS ITS MOST VALUABLE ASSETS AS PREVIOUSLY REPORTED INTEGRATED IS PROPOSING TO OFFER 59 CENTS ON THE DOLLAR TO SENIOR CREDITORS BUT NOTHING TO GENERAL CREDITORS ANOTHER PLAN BY NEW YORK MONEY MANAGERS STEINHARDT MANAGEMENT CO IS OFFERING SENIOR DEBTHOLDERS 49 CENTS ON THE DOLLAR AND SUBORDINATED DEBTHOLDERS THREE CENTS ON THE DOLLAR PENGUIN'S PLAN HOWEVER WILL HAVE TO WAIT IN LINE WITH THE STEINHARDT PLAN US BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR SAID LAST WEEK THAT THE REORGANIZATION PLAN PROPOSED BY INTEGRATED'S MANAGEMENT SHOULD BE CONSIDERED BEFORE ANY OTHER PLANS ARE PUT FORWARD A SPOKESMAN FOR INTEGRATED NOTED THAT THE PENGUIN PLAN ALREADY WAS FILED WITH THE COURT LAST WEEK ALONG WITH THE STEINHARDT PLAN AND THAT THE JUDGE WAS AWARE OF BOTH OF THE COMPETING PLANS IN SETTING A HEARING FOR NEXT MONDAY TO CONSIDER APPROVAL OF THE MANAGEMENT PLAN ONLY IF THAT PLAN IS APPROVED IT WOULD GO TO CREDITORS FOR A VOTE THE SPOKESMAN ALSO SAID THE PENGUIN PLAN WAS HIGHLY CONDITIONAL AND ALLOWED PENGUIN TO BOW OUT EASILY IF CIRCUMSTANCES CHANGED IF THEIR OFFER BECOMES FIRM THEN WE'D LOOK AT IT THE SPOKESMAN SAID A PENGUIN SPOKESWOMAN SAID ITS OFFER WOULD PROVIDE THE 51 CENTS TO SENIOR CREDITORS IN CASH AND UP FRONT SHE SAID INTEGRATED'S PLAN PROVIDES FOR ONLY 39 CENTS CASH UP FRONT AND THE REMAINING 20 CENTS OVER TIME SHE NOTED THAT THE OFFER OF 30 CENTS ON THE DOLLAR COVERS GENERAL UNSECURED CREDITORS WHILE THE STEINHARDT OFFER OF THREE CENTS ONLY PERTAINS TO CLAIMS OF SUBORDINATED DEBTHOLDERS INTEGRATED HAS INDICATED TOTAL CLAIMS OF ABOUT 11 BILLION BY SENIOR UNSECURED CREDITORS AND 140 MILLION BY GENERAL UNSECURED CREDITORS INTEGRATED RESOURCES INC'S PROPOSED PLAN OF CHAPTER 11 REORGANIZATION INCLUDES AN OFFER TO PAY GENERAL UNSECURED CREDITORS 38 CENTS FOR EACH DOLLAR OF CLAIMS IN A COMBINATION OF CASH DEBT AND STOCK JUNIOR CREDITORS MAINLY SUBORDINATED DEBTHOLDERS WOULD GET NOTHING UNDER THE COMPANY'S PLAN AN ARTICLE YESTERDAY INCORRECTLY SAID THE GENERAL UNSECURED CREDITORS WHOE MAINLY TRADE CREDITORS WOULD GET NOTHING UNDER THE COMPANY'S PLAN