THE NEW LOOK IN MANY APPAREL CATALOGS HAS NOTHING TO DO WITH CLOTHES IT'S THE DIVERSITY OF THE MODELS THERE ON PAGE 46 OF LORD & TAYLOR'S SPRING CATALOG FOR INSTANCE IS A MODEL WEARING A NAVY LINEN SUIT AND A FULL HEAD OF SILVERY GRAY HAIR IN NORDSTROM'S JANUARY CATALOG A SMILING BRUNETTE SHOWS OFF AN OVERSIZED RED SHIRT AND LEGGINGS IN HER WHEELCHAIR AND A BIT LATER IN THE CATALOG AN AUBURNHAIRED WOMAN WITH WALKING BRACES SPORTS A STRIPED COTTON SHIRT SUDDENLY MODELS IN MAINSTREAM CATALOGS ARE REFLECTING MAIN STREET WHILE YOUTHFUL FAIRSKINNED MODELS ARE STILL THE NORM THEY ARE BEING JOINED BY COMPATRIOTS WITH A DIFFERENT LOOK MORE MODELS ARE OLDER MORE ARE BLACK ASIAN AND HISPANIC SOME ARE PHYSICALLY DISABLED THE FRESH DIVERSITY AMONG OTHER THINGS REFLECTS CHANGING DEMOGRAPHICS AGING BABY BOOMERS AND GROWING NUMBERS OF NONCAUCASIAN SHOPPERS OFTEN CAN'T RELATE TO CATALOGS' TRADITIONAL USE OF JUST YOUNG AND COMELY WHITE MODELS ALSO MARKETING EXPERTS SAY TODAY'S CAUTIOUS CONSUMERS ARE WARY OF TOOPERFECT PRESENTATIONS THEY WANT MERCHANTS TO PAINT THEM A MORE REALISTIC PICTURE THE DOMINANT THEME FOR THE '90S IS AUTHENTICITY SAYS LAUREL CUTLER VICE CHAIRMAN OF FCB/LEBER KATZ PARTNERS A NEW YORK ADVERTISTING AGENCY IT'S THE ONLY STRATEGY THAT WORKS WHILE MAGAZINES AND ADVERTISERS BEGAN RECOGNIZING DIVERSITY A DECADE AGO CATALOGS HAVE JUST BEGUN CATCHING ON TO THE IDEA WE'RE NOT ALWAYS THE FASTEST TO CHANGE WE SOMETIMES NEED TO BE HIT OVER THE HEAD OFFERS JOAN BURDEN LITLE PRESIDENT OF CATALOG CONNECTION A NEW YORK CONSULTING FIRM FOR CATALOG RETAILERS THE NEW LOOK REFLECTS THE INTENSE PRESSURE IN THE CROWDED 50 BILLIONAYEAR BUSINESS TO WIN OVER CONSUMERS INDUSTRY SALES ARE EXPECTED TO GROW AT AN AVERAGE ANNUAL RATE OF 66 FOR THE FOUR YEARS ENDING IN 1996 DOWN FROM A 9 HIKE FOR THE PRIOR FOURYEAR PERIOD PROJECTS THE WEFA GROUP A BALA CYNWYD PA FORECASTING FIRM THE 45TO54YEAROLD AGE GROUP OFFERS A PARTICULARLY RIPE TARGET THE US CENSUS BUREAU PROJECTS THAT GROUP WILL GROW 44 IN NUMBER THIS DECADE THE FASTEST RATE AMONG ALL AGE GROUPS PERHAPS THAT EXPLAINS WHY VETERAN MODEL AND ACTRESS LAUREN HUTTON APPEARS IN SEVERAL PAGES OF THE J CREW SPRING CATALOG MODELING THE RETAILER'S LINEN WEAR AND CASUAL SEPARATES APPEARING AFTER PAGES OF YOUNGER MODELS POSING ABOARD SAILBOATS MS HUTTON REPRESENTS THE VOICE OF THE BABY BOOMERS SAYS FAITH KATES PRESIDENT OF NEXT MANAGEMENT A NEW YORK MODELING AGENCY AMONG CATALOG MARKETERS THE TRADITIONAL RULE OF THUMB IS THAT MODELS SHOULD BE ABOUT 10 YEARS YOUNGER THAN THE TARGET AUDIENCE THE GENERAL PERCEPTION IN THE BUSINESS IS THAT OLDER CUSTOMERS SEE THEMSELVES AS SUBSTANTIALLY YOUNGER THAN THEY ARE SAYS ARNOLD FISHMAN PRESIDENT OF MARKETING LOGISTICS INC A LINCOLNSHIRE ILL CONSULTING FIRM HE SAYS THAT WHILE THERE IS STILL THIS TREND OF SELECTING YOUNGER MODELS THE MODEL MIX MAY BE SOMEWHAT OLDER THAN IN THE PAST FOUR YEARS AGO OLDER MODELS WERE HARD TO FIND SAYS NORDSTROM INC'S CHERYL FUJIIZAHNISER CREATIVE ART DIRECTOR THE SEATTLEBASED RETAILER SEEKING TO BETTER REPRESENT ITS AGING CONSUMERS FOUND SUCH MODELS THROUGH RECOMMENDATIONS AND BY APPROACHING PEOPLE ON THE STREET WE'D SAY YOU'RE A HANDSOME PERSON WOULD YOU MIND MODELING FOR US' SHE SAYS IN THE PAST YEAR THOUGH THERE HAS BEEN VERY SOLID GROWTH IN THE MARKET FOR OLDER MODELS SAYS T ZAZZERA DIRECTOR OF SPECIAL MARKETS AT FORD MODELS INC MODELS WHO USED TO RETIRE AT THE RIPE AGE OF 29 NOW HAVE WORK THROUGH THEIR 40S SHE SAYS SOME MAINSTREAM COMPANIES ARE FOLLOWING CATALOG COMPANIES LIKE COMFORTABLY YOURS OF MAYWOOD NJ WHICH FOR 10 YEARS HAS BEEN USING SOME OLDER MODELS TO PROMOTE ITS LINE OF APPAREL THAT APPEALS TO THE ELDERLY JC PENNEY CO ALSO HAS BEEN USING OLDER MODELS TO BROADEN THE APPEAL OF ITS EASY DRESSING CATALOG WHOSE CLOTHING ORIGINALLY WAS AIMED ONLY AT PEOPLE WITH ARTHRITIS PENNEY'S FLAGSHIP CATALOG HAS ALSO ADDED SOME OLDER MODELS CATALOGS HAVE BEEN QUICKER TO USE MORE NONWHITE MODELS AS MINORITY POPULATIONS GROW THEY BECOME INCREASINGLY VALUABLE TARGETS FOR RETAILERS PEGGI MCKINLEY OWNER AND PRESIDENT OF ACT I MODEL & TALENT AGENCY OF MIAMI SAYS ABOUT 30 MORE OF HER CLIENTS THIS SEASON ARE EITHER REQUESTING NONWHITE MODELS FOR THE FIRST TIME OR USING MORE OF THEM IN RETAILER TALBOTS'S SPRING CATALOGS SEVERAL BLACK MODELS ARE FEATURED THAT'S A CHANGE FROM THE 1980S WHEN ALL OF ITS MODELS WERE WHITE SAYS A SPOKESWOMAN FOR TALBOTS WHICH IS A SUBSIDIARY OF JAPAN'S AEON GROUP WE WERE REPRESENTATIVE OF THE COUNTRYCLUB SET AND WHILE THAT'S NOT NECESSARILY A NEGATIVE IT DOESN'T REPRESENT THE BROAD TRENDS OF THE CONSUMER SHE SAYS ANOTHER FAMILIAR CATALOG RETAILER LL BEAN INC HAD A SIMILAR PAST FOR NEARLY 80 YEARS ITS TRADITION WAS TO USE EMPLOYEES AS MODELS NEARLY ALL OF ITS EMPLOYEES ARE WHITE REFLECTING THE POPULATION SURROUNDING ITS FREEPORT MAINE HEADQUARTERS THAT CREATES PROBLEMS WHEN YOU'RE TRYING TO REACH OUT TO DIFFERENT PEOPLE A SPOKESWOMAN SAYS TWO YEARS AGO THE COMPANY HIRED A PROFESSIONAL MODELING AGENCY AND ITS CATALOG NOW FEATURES A DIVERSE GROUP INCLUDING BLACKS SLOWLY MODELS IN WHEELCHAIRS AND ON WALKERS ARE STARTING TO SHOW OFF APPAREL IN MAINSTREAM CATALOGS NORDSTROM BEGAN USING PHYSICALLY DISABLED MODELS IN ITS JULY 1991 CATALOG AND GOT POSITIVE FEEDBACK FROM CUSTOMERS SAYS MS FUJIIZAHNISER CHILDREN'S CATALOGS HAVE FOR SOME TIME FEATURED MODELS WITH VARIOUS DISABILITIES A RECENT FINGERHUT COS CATALOG COVER FEATURES A BOY WITH DOWN SYNDROME MODELING A LEATHER JACKET OTHER DOWN SYNDROME CHILDREN FEEL GOOD WHEN THEY LOOK AT OUR CATALOG AND SEE SOMEONE LIKE THEM SAYS BETTY BOTHEREAU VICE PRESIDENT FOR CONSUMER AFFAIRS AT FINGERHUT KATIE MULDOON OF MULDOON & BAER INC A NEW YORK CATALOG CONSULTING FIRM SAYS THAT WHILE CATALOGS INCREASINGLY PRESENT MORE REALLIFE SCENARIOS THEY HAVE A LONG WAY TO GO INDEED MS ZAZZERA OF FORD MODELS PREDICTS IT WILL TAKE ANOTHER DECADE BEFORE MOST CATALOGS USE OLDER MODELS ON A REGULAR BASIS WE'RE AT THE TIP OF THE ICEBERG SHE SAYS IT'S WHEN THE BOOMERS TURN 50 THAT WE'LL REALLY START TO SEE SOME CROW'SFEET THE OLDEST BOOMERS ARE 47 HOWEVER A TALBOTS SPOKESWOMAN WORRIES THAT DRESSES ON OLDER MODELS COULD ALIENATE THE YOUNGER CONSUMER THEY MIGHT BE CONFUSED AND THINK IS THIS DRESS FOR ME OR FOR MY MOTHER SHE SAYS AND MS MULDOON THE CATALOG CONSULTANT THINKS CATALOG MERCHANTS SHOULDN'T MOVE TOO FAR FROM THEIR TRADITIONAL GLAMOUR FORMATS MANY SHOPPERS SHE SAYS DON'T WANT SLICES OF REAL LIFE BUT REGARD THEIR CATALOGS AS FANTASY VEHICLES 9303030118 930303 INTERNATIONAL PRESSURE INTENSIFIES ON BUNDESBANK FOR FURTHER CUT IN INTEREST RATES DATA FOR ENGINEERING ORDERS REFLECT GERMAN SLUMP MONETARY PANEL TO MEET BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT PRESSURE ON THE GERMAN CENTRAL BANK TO LOWER INTEREST RATES INTENSIFIED AFTER BONN REPORTED THAT ORDERS TO GERMANY'S IMPORTANT ENGINEERING SECTOR COLLAPSED IN JANUARY UNDERSCORING THE DEEPENING RECESSION IN EUROPE'S LARGEST ECONOMY IT WAS JUST MORE EVIDENCE FOR ECONOMISTS THAT THE BUNDESBANK WILL HAVE TO RESPOND BY EASING MONETARY POLICY POSSIBLY AS SOON AS TOMORROW WHEN ITS POLICYSETTING COUNCIL MEETS IT IS CLEAR WE ARE IN A CRISIS SAID GUSTAV HORN AN ECONOMIST WITH THE GERMAN INSTITUTE FOR ECONOMIC RESEARCH OR DIW IN ITS GERMAN INITIALS IN BERLIN ONE OF THE FIVE THINK TANKS THAT ADVISE THE BONN GOVERNMENT THE DIW FORECASTS A 2 SLIDE IN WESTERN GERMANY'S GROSS DOMESTIC PRODUCT IN THE FIRST QUARTER FROM A YEAR EARLIER BODING ILL FOR BONN'S PROJECTION THAT THE ECONOMIC DECLINE COULD BE HELD TO 1 FOR THE YEAR WE'VE BEEN PREDICTING A CRASH LANDING SINCE OCTOBER IF THE BUNDESBANK DIDN'T CHANGE POLICIES SINCE IT DIDN'T THE CRASH LANDING IS HAPPENING AND WE'RE NOT SURPRISED MR HORN SAID YESTERDAY THE GERMAN MACHINERY AND PLANTBUILDING INDUSTRY REPORTED AN INFLATIONADJUSTED 24 DROP IN DOMESTIC ORDERS IN JANUARY FROM A YEAR EARLIER FOREIGN ORDERS FELL 11 MAKING FOR AN 18 DECLINE IN ORDER BOOKINGS OVERALL MEANWHILE THE ECONOMICS MINISTRY SAID WESTERN GERMAN INDUSTRIAL PRODUCTION FELL 68 IN JANUARY FROM A YEAR EARLIER ALTHOUGH IT ROSE 29 FROM DECEMBER THE MINISTRY NOTED HOWEVER THAT MANY COMPANIES HAD USED THE DECEMBER HOLIDAYS TO CURTAIL WORK INDUSTRIAL PRODUCTION IN EASTERN GERMANY MEANWHILE FELL 83 IN DECEMBER FROM NOVEMBER BUT WAS UP 04 FROM DECEMBER 1991 EASTERN GERMAN FIGURES COME A MONTH AFTER WESTERN GERMANY'S THE DIRE NEWS MIRRORED THE RECESSION GRIPPING GERMANY'S MANUFACTURING SECTOR THE AUTOMOTIVE INDUSTRY LAST MONTH REPORTED JANUARY MOTORVEHICLE PRODUCTION PLUNGED 29 FROM A YEAR EARLIER GERMANY'S SPRAWLING CHEMICAL INDUSTRY THE THIRD MAJOR MANUFACTURING SECTOR ALSO REPORTED FALLING PRODUCTION JOB CUTS AND AN AVERAGE 30 DROP IN 1992 PROFITS RUNAWAY UNITY COSTS AND A LACK OF POLITICAL CONSENSUS FOR CHANCELLOR HELMUT KOHL'S FISCAL RESTRUCTURING PLAN LEADING TO FEARS OF NEW TAXES AND CONTINUED HIGH INTEREST RATES HAVE ERODED BUSINESS AND CONSUMER CONFIDENCE EXPORT DEMAND REMAINS SLUGGISH AND DOMESTIC MANUFACTURERS FACE GROWING COMPETITION FROM LOWCOST ASIAN AND EAST EUROPEAN PRODUCERS THE BUNDESBANK HAS TO FEEL THE PRESSURE NOW SAID RICHARD REID A FRANKFURT ECONOMIST WITH UNION BANK OF SWITZERLAND THE PROBLEMS ARE SPREADING FROM MANUFACTURING TO OTHER SECTORS THE CORPORATE NEWS IS GETTING GRIMMER AND GRIMMER THE BUNDESBANK LAST LOWERED ITS DISCOUNT RATE BY A STINGY ONEQUARTER POINT FEB 4 A MOVE SEEN AIMED AT STABILIZING THE EUROPEAN MONETARY SYSTEM EMS CONCERNS STILL PLAY A ROLE AHEAD OF THE MARCH 27 FRENCH ELECTIONS AND A SECOND DANISH REFERENDUM ON EUROPEAN MONETARY UNION BUT ANALYSTS BELIEVE THE BUNDESBANK IS BECOMING EQUALLY CONCERNED ABOUT THE GERMAN ECONOMY BUNDESBANK PRESIDENT HELMUT SCHLESINGER HAS NOTED THAT GERMAN LONGTERM INTEREST RATES AT JUST UNDER 7 HAVE FALLEN TO THEIR LOWEST LEVELS IN YEARS AND IT IS LONGTERM CREDIT RATES HE SAID THAT ARE IMPORTANT FOR INVESTORS BUT ECONOMISTS CONTEND THAT COMPANIES IN TROUBLE NEED SHORTTERM FINANCING WHICH IS GUIDED BY THE BUNDESBANK'S OFFICIAL DISCOUNT AND LOMBARD RATES MOREOVER ANALYSTS SAY BUSINESSES THAT CAN AFFORD TO WAIT WILL DELAY CAPITAL INVESTMENT IN ANTICIPATION OF OFFICIAL RATE REDUCTIONS BRINGING DOWN LONGTERM INTEREST RATES FURTHER STILL THE LONGER THE BUNDESBANK DELAYS THE LONGER INVESTMENT WILL BE DELAYED WARNED THE DIW'S MR HORN 9303030117 930303 INTERNATIONAL THREE JAPANESE FIRMS HAVE PLANS TO REVAMP OR TO CUT PRODUCTION SPECIAL TO THE WALL STREET JOURNAL TOKYO THREE MAJOR JAPANESE COMPANIES ITOCHU CORP MARUBENI CORP AND TOYOBO CO SAID THEY PLAN TO TRIM PRODUCTION OR RESTRUCTURE MANAGEMENT OFFICIALS AT ITOCHU AND MARUBENI TWO MAJOR TRADING HOUSES SAID THEIR COMPANIES PLAN TO RESTRUCTURE MANAGEMENT TO EMPHASIZE SALES ITOCHU WHICH HAS A WORK FORCE OF 7149 WILL MOVE 300 OF ITS 1150 MANAGERIAL PERSONNEL TO SALES JOBS OVER THE NEXT 18 MONTHS TO PRUNE ITS BLOATED MANAGEMENT RANKS MARUBENI WILL MOVE ABOUT 70 EMPLOYEES OR 10 OF ITS MANAGERIAL STAFF TO SALES SECTIONS ON APRIL 1 MEANWHILE FACING SLACK DEMAND BECAUSE OF CHEAPER IMPORTS FROM CHINA AND PAKISTAN TOYOBO ONE OF JAPAN'S TOP TEXTILE MAKERS SAID IT WILL CUT BACK PRODUCTION BY CLOSING 10 OF ITS 12 COTTON YARN PLANTS FROM FOUR TO EIGHT EXTRA DAYS THIS MONTH COMPANY SPOKESMAN MAKOTO OSAWA SAID 3000 WORKERS OR ABOUT 40 OF TOYOBO'S WORK FORCE WOULD BE AFFECTED BY THE DECISION HE SAID THE COMPANY HASN'T DECIDED WHETHER TO CONTINUE THE REDUCTION OF WORKDAYS NEXT MONTH THE COMPANY WILL REIMBURSE THE FURLOUGHED WORKERS FOR MISSED WAGES AND APPLY TO THE LABOR MINISTRY FOR EMPLOYMENT ADJUSTMENT SUBSIDIES HE SAID THE ANNOUNCEMENTS FOLLOW BELTTIGHTENING PLANS BY HUNDREDS OF OTHER JAPANESE COMPANIES BECAUSE OF THE NATION'S RECESSION 9303030116 930303 WHO'S NEWS HUMANA COMPLETES A SPINOFF FORMING TWO PUBLIC COMPANIES LOUISVILLE KY HUMANA INC COMPLETED THE SPINOFF OF ITS HOSPITAL AND HEALTHPLAN BUSINESSES INTO TWO PUBLICLY TRADED COMPANIES THE MOVE WAS EFFECTIVE AT THE CLOSE OF BUSINESS MONDAY THE NEW HOSPITAL COMPANY GALEN HEALTH CARE INC WILL ALSO BE BASED IN LOUISVILLE CARL F POLLARD 54 YEARS OLD PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF HUMANA WILL BE CHAIRMAN AND CHIEF EXECUTIVE OF GALEN JAMES D BOHANON 47 PREVIOUSLY EXECUTIVE VICE PRESIDENT AT HUMANA WILL BE CHIEF OPERATING OFFICER AND PRESIDENT OF GALEN DAVID A JONES 61 WILL REMAIN CHAIRMAN AND CEO OF HUMANA WHICH WILL OPERATE THE HEALTHPLAN BUSINESS WAYNE T SMITH FORMERLY AN EXECUTIVE VICE PRESIDENT AT HUMANA WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER GALEN WILL TRADE UNDER THE SYMBOL GHC ON THE NEW YORK STOCK EXCHANGE STOCK CERTIFICATES WILL BE DISTRIBUTED FRIDAY EACH SHARE OF HUMANA STOCK HELD AS OF MONDAY CAN BE EXCHANGED FOR ONE SHARE OF GALEN STOCK GALEN OWNS AND OPERATES 76 HOSPITALS IN THE US AND EUROPE IN NOVEMBER HUMANA'S STOCK SKIDDED 17 IN ONE DAY AFTER THE COMPANY ANNOUNCED IT WOULD STOP PAYING DIVIDENDS IN ANTICIPATION OF THE SPINOFF THE TWO NEW COMPANIES WON'T PAY DIVIDENDS IN THE NEAR FUTURE A HUMANA SPOKESMAN SAID 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 9303030115 930303 WHO'S NEWS TEXACO SELECTS KROWE TO BE VICE CHAIRMAN WHITE PLAINS NY TEXACO INC NAMED ALLEN J KROWE TO THE NEW POSITION OF VICE CHAIRMAN MR KROWE WHO REMAINS CHIEF FINANCIAL OFFICER WAS ALSO NAMED A MEMBER OF THE COMPANY'S BOARD IN HIS NEW JOB MR KROWE 60 YEARS OLD BECOMES TEXACO'S NO 2 EXECUTIVE A SPOKESMAN SAID HE WILL MANAGE THE OIL COMPANY'S DOMESTIC EXPLORATION AND PRODUCTION OPERATIONS AS WELL AS ITS REFINING AND MARKETING BUSINESSES IN THE US MR KROWE'S ADDITION TO THE BOARD INCREASES THE NUMBER OF DIRECTORS TO 16 THE COMPANY SAID MR KROWE'S NEW JOBS ARE EFFECTIVE APRIL 1 THE DATE THAT CHAIRMAN ALFRED C DECRANE 61 BECOMES CHIEF EXECUTIVE OFFICER SUCCEEDING JAMES KINNEAR 65 WHO WILL RETIRE MR KROWE HAD BEEN CONSIDERED A CONTENDER FOR THE TOP SPOT ACCORDING TO INDUSTRY SOURCES 9303030114 930303 LAW JUSTICES SAY STATES HAVE BROAD LATITUDE TO DESIGN MINORITY VOTING DISTRICTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID STATES HAVE BROAD LATITUDE TO DESIGN MINORITYDOMINATED VOTING DISTRICTS THE UNANIMOUS RULING REITERATED THE JUSTICES' ADMONITION MADE IN ANOTHER VOTINGRIGHTS DECISION LAST WEEK THAT FEDERAL COURTS ORDINARILY SHOULD DEFER TO STATE REDISTRICTING EFFORTS THE VICTORS IN YESTERDAY'S RULING WERE REPUBLICANS FROM OHIO WHO HAD REVISED THE STATE'S ELECTIVE MAP AFTER THE 1990 CENSUS TO CREATE FIVE DISTRICTS DOMINATED BY RACIAL MINORITIES PRIMARILY BLACKS A NUMBER OF STATES HAVE CRAFTED MINORITYDOMINATED DISTRICTS IN THE PAST TWO YEARS RESULTING IN THE ELECTION OF MORE NONWHITE MEMBERS OF CONGRESS AND STATE LEGISLATURES THE DISPUTE IN OHIO WAS UNUSUAL BECAUSE BLACK VOTERS ALONG WITH DEMOCRATIC OFFICIALS CHALLENGED THE CREATION OF MINORITYDOMINATED STATE LEGISLATIVE DISTRICTS THE CHALLENGERS SAID THAT REPUBLICANS HAD PACKED MINORITIES INTO FIVE DISTRICTS TO DIMINISH OVERALL BLACK STRENGTH ADDITIONAL BLACK OFFICIALS WOULD HAVE BEEN ELECTED BY DRAWING THE LINES SO THAT MINORITIES HAD INFLUENCE BUT NOT VOTING MAJORITIES IN A LARGER NUMBER OF DISTRICTS THE CHALLENGERS SAID A SPECIAL FEDERAL TRIAL COURT AGREED WITH THE CHALLENGERS CONCLUDING THAT THE STATE HAD FAILED TO JUSTIFY THE CREATION OF MINORITYDOMINATED DISTRICTS BY SHOWING THAT PREVIOUS ARRANGEMENTS VIOLATED THE FEDERAL VOTING RIGHTS ACT REVERSING THAT RULING THE SUPREME COURT SAID THAT A STATE NEEDN'T CONCEDE IN EFFECT THAT ITS PREVIOUS VOTING LINES WERE ILLEGAL IN ORDER TO CRAFT NEW MINORITYDOMINATED DISTRICTS THE HIGH COURT'S OPINION WRITTEN BY JUSTICE SANDRA DAY O'CONNOR ALSO REJECTED THE LOWER COURT'S FINDING THAT THE OHIO REDISTRICTING WAS UNCONSTITUTIONAL BECAUSE REPUBLICANS HAD INTENTIONALLY DILUTED MINORITY VOTING STRENGTH JUSTICE O'CONNOR STRESSED THAT REPUBLICANS HAD COOPERATED WITH GROUPS INCLUDING THE OHIO BRANCH OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE THAT WOULDN'T HAVE TOLERATED SUCH INTENTIONAL DISCRIMINATION SEPARATELY THE CLINTON ADMINISTRATION URGED THE HIGH COURT TO REVERSE A LOWERCOURT RULING AND UPHOLD THE US POLICY OF FORCIBLY RETURNING HAITIAN REFUGEES INTERCEPTED AT SEA DURING HIS CAMPAIGN MR CLINTON SAID THE POLICY WHICH WAS INITIATED BY FORMER PRESIDENT BUSH IS ILLEGAL AND IMMORAL BUT SINCE HIS ELECTION MR CLINTON HAS REVERSED HIS POSITION ON THE ISSUE CITING FEARS OF A HUGE MIGRATION OF REFUGEES FROM THE POLITICAL AND ECONOMIC STRIFE IN HAITI A JUSTICE DEPARTMENT LAWYER REPRESENTING THE ADMINISTRATION YESTERDAY MADE NO EFFORT TO JUSTIFY THE CLINTON SWITCH AND SHE WASN'T PRESSED TO DO SO BY THE JUSTICES A DECISION IN THE CASE IS EXPECTED BY JUNE 9303030113 930303 NCR COMPUTER ASSOCIATES PACT DAYTON OHIO NCR CORP SAID IT WOULD TEAM UP WITH COMPUTER ASSOCIATES INTERNATIONAL INC TO DEVELOP SOFTWARE FOR NCR COMPUTERS THAT USE UNIX OPERATING SOFTWARE AMERICAN TELEPHONE & TELEGRAPH CO'S NCR UNIT AND COMPUTER ASSOCIATES ISLANDIA NY WILL JOINTLY MARKET THE RESULTING VERSION OF COMPUTER ASSOCIATES' UNICENTER PRODUCT COMPUTER ASSOCIATES ALREADY HAS ANNOUNCED UNICENTER VERSIONS FOR UNIX COMPUTERS MADE BY HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP SUN MICROSYSTEMS INC AND OTHERS 9303030112 930303 CORRECTIONS & AMPLIFICATIONS CHIRON CORP A BIOTECHNOLOGY COMPANY WAS SOLD SHORT IN A BEARISH BET BY HAWKEYE FUND YESTERDAY'S HEARD ON THE STREET COLUMN MISSTATED THE STOCK NAME AS CHYRON CORP AN UNRELATED COMPANY THAT MAKES TELEVISION GRAPHICS SYSTEMS MISSION ENERGY CO A UNIT OF SCECORP SAID IT EXPECTS A MUCH HIGHER RATE OF RETURN ON ITS LOY YANG B ELECTRIC PROJECT IN AUSTRALIA THAN THE 13 TO 14 INCORRECTLY STATED IN YESTERDAY'S INDUSTRY FOCUS ARTICLE PLEXUS RESOURCES CORP REPORTED ITS RESULTS FOR THE YEAR AND FOURTH QUARTER THE TABLE IN YESTERDAY'S DIGEST OF EARNINGS REPORTS INCORRECTLY IDENTIFIED THE COMPANY AS PHOENIX LASER SYSTEMS A CORRECT TABLE APPEARS IN TODAY'S PAPER 9303030111 930303 TECHNOLOGY REICH URGES BASING DECISION ON HDTV ON CREATION OF JOBS WASHINGTON LABOR SECRETARY ROBERT REICH WADED INTO THE BATTLE OVER HIGHDEFINITION TELEVISION CONTENDING THAT THE SELECTION OF A US STANDARD FOR THE TECHNOLOGY SHOULD BE BASED PARTLY ON WHETHER JOBS ARE CREATED IN THE US IN A LETTER LAST WEEK TO FEDERAL COMMUNICATIONS COMMISSION CHAIRMAN JAMES QUELLO MR REICH SAID THAT FINAL SELECTION SHOULD TURN IN PART ON AN ASSESSMENT OF WHICH SYSTEM WOULD MAKE THE GREATEST CONTRIBUTION TO DOMESTIC HIGHWAGE EMPLOYMENT HE ASKED THAT THE FCC ENSURE THAT JOB CREATION IS GIVEN SIGNIFICANT WEIGHT IN THE SELECTION PROCESS THE GOVERNMENT IS TESTING FOUR SYSTEMS THAT HAVE BEEN DEVELOPED BY THREE RIVAL GROUPS IN RECENT WEEKS AT THE URGING OF THE THE FCC ADVISORY COMMITTEE CHARGED WITH SUPERVISING THE PROCESS THE THREE GROUPS HAVE BEEN DISCUSSING AN ALLIANCE TO DEVELOP A SINGLE SYSTEM THE WINNING GROUP WOULD RECEIVE THE HUGE PRIZE OF ROYALTY PAYMENTS FROM OTHER MANUFACTURERS EVERY TIME THEY USED THE USSTANDARD TECHNOLOGY MR REICH'S COMMENTS THREATEN TO SHIFT THE BALANCE IN THE DEBATE OVER HDTV WHICH UNTIL NOW HAS FOCUSED ON TECHNOLOGICAL RATHER THAN POLITICAL CONSIDERATIONS AS ONE OF THE MOST POWERFUL MEMBERS OF PRESIDENT CLINTON'S CABINET MR REICH HAS THE PRESIDENT'S EAR AND COULD BRING PRESSURE ON THE FCC'S DECISION MAKING MR REICH APPEARS TO BE FAVORING AN ENTRANT CONSISTING OF THE DAVID SARNOFF RESEARCH CENTER DUTCHOWNED PHILIPS ELECTRONICS NV THOMSON SA OF FRANCE GENERAL ELECTRIC CO'S NBC SUBSIDIARY AND COMPRESSION LABS INC THAT GROUP IS THE ONLY ONE THAT HAS PROMISED TO MANUFACTURE IN THE US MR REICH APPEARS TO BE SIDING WITH TWO UNIONS THE COMMUNICATIONS WORKERS OF AMERICA AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS WHICH HAVE BEEN LOBBYING ADMINISTRATION OFFICIALS TO KEEP HIGHTECHNOLOGY JOBS IN THE US THE THIRD GROUP COMPETING FOR THE HDTV PRIZE IS GENERAL INSTRUMENT CORP AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9303030110 930303 POLITICS & POLICY REPUBLICAN PARTY FACES GROWING INTERNAL DEBATE OVER HOW TO RECAPTURE TAX ISSUE FROM DEMOCRATS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN CANDIDATE WALTER MONDALE TOLD AMERICANS IN 1984 THAT HE WOULD RAISE THEIR TAXES TO REDUCE THE FEDERAL DEFICIT REPUBLICANS WERE SO DELIGHTED THAT AS THE LATE STRATEGIST LEE ATWATER RECALLED LATER I THOUGHT I WAS HAVING A DREAM NOW PRESIDENT CLINTON HAS UNABASHEDLY PROPOSED HIGHER TAXES BUT IT'S THE DEMOCRATS WHO HAVE THAT DREAMY FEELING THE POLLS WHICH SHOW THAT THE PRESIDENT'S APPROVAL RATING HAS RISEN SINCE HE UNVEILED HIS ECONOMIC PACKAGE SUGGEST THE TAX ISSUE THAT THE GOP DOMINATED THROUGH THREE PRESIDENTIAL ELECTIONS IN THE 1980S MAY HAVE LOST ITS BITE AND OUTFLANKED REPUBLICANS FACE A WRENCHING INTERNAL DEBATE OVER HOW TO GRAB THE ISSUE BACK THE STAKES ARE ENORMOUS CRACKING THE TAX TABOO SAYS HISTORIAN AND ONETIME JFK AIDE ARTHUR SCHLESINGER WILL DETERMINE WHETHER DEMOCRATS CAN RESTORE CONFIDENCE IN GOVERNMENT AS THEY SEEK TO USHER IN A NEW PROGRESSIVE ERA IN A MAGAZINE ARTICLE ABOUT THE TAX ISSUE BEFORE MR CLINTON TOOK OFFICE MR SCHLESINGER WROTE THAT IT WOULD BE A MISTAKE FOR THE NEW PRESIDENT TO OPEN HIS TERM BY PROPOSING HIGHER TAXES NOW HE SAYS HE UNDERESTIMATED AMERICANS' WILLINGNESS TO SWALLOW BITTER MEDICINE IT ISN'T CLEAR THAT THE NEW PRESIDENT CAN CONTINUE TO HOLD THE HIGH GROUND SINCE HE DIDN'T CAMPAIGN ON THE TAX PACKAGE HE HAS PROPOSED CANDIDATE CLINTON PROMISED TO CUT TAXES ON THE MIDDLE CLASS AND LIMITED PROPOSED TAX INCREASES ON INDIVIDUALS TO INCOMES ABOVE 150000 PRESIDENT CLINTON WANTS A NEW ENERGY TAX THAT WOULD HIT VIRTUALLY EVERYONE EXCEPT THE POOR HIGHER TAXES ON AFFLUENT SOCIAL SECURITY RECIPIENTS AND INCOME TAX INCREASES ON INDIVIDUALS WITH TAXABLE INCOMES ABOVE 115000 BUT THERE'S LITTLE DOUBT THE POLITICAL CALCULUS ABOUT TAXES HAS ALREADY BEEN SHAKEN UP IN LARGE PART THAT'S BECAUSE OF A PRESIDENT'S POWER TO SET THE TERMS FOR DEBATE BY CALLING TAX INCREASES CRUCIAL TO SOLVING THE NATION'S LONGFESTERING ECONOMIC PROBLEMS AND ALIGNING REPUBLICAN OPPONENTS WITH A DISCREDITED STATUS QUO MR CLINTON HAS TURNED HIS PARTY'S WEAKNESS INTO A PREREQUISITE FOR ACTION MOREOVER BY TARGETING AFFLUENT AMERICANS IN PARTICULAR HE HAS FOCUSED ATTENTION ON THE MOST POPULAR SORT OF TAX INCREASES FOR THE MOMENT AT LEAST THE GOP HAS UNITED IN OPPOSITION TO A WHITE HOUSE PLAN TILTED SHARPLY TOWARD DEMOCRATIC CONSTITUENCIES IT REMINDS ALL FLAVORS OF WHY THEY'RE REPUBLICANS SAYS NEW GOP CHAIRMAN HALEY BARBOUR WHO'S DELIGHTED TO CHANGE THE SUBJECT FROM THE PARTY'S RECENT INTRAMURAL BICKERING OVER SOCIAL ISSUES BUT IDEOLOGICAL DIVISIONS OVER TAXES BETWEEN GOP MODERATES AND CONSERVATIVE SUPPLYSIDERS WILL BECOME MORE PRONOUNCED AS REPUBLICANS ON CAPITOL HILL TAKE UP THE PRESIDENT'S CHALLENGE TO OFFER SPECIFIC ALTERNATIVES MODERATES ARE WILLING TO ACCEPT SOME TAX INCREASES ON THE WEALTHY JUST NOT AS MUCH AS MR CLINTON HAS PROPOSED THE DEMOCRATS WON THE DEBATE OVER WHETHER THE RICH PAY THEIR FAIR SHARE SAYS REPUBLICAN REP STEVE GUNDERSON OF WISCONSIN THE MOST POWERFUL REPUBLICAN OF ALL SENATE MINORITY LEADER ROBERT DOLE OF KANSAS WON'T RULE OUT NEW TAXES SAYING HE WANTS A BETTER MIX OF SPENDING CUTS AND TAX INCREASES THAT MR CLINTON HAS PROPOSED BUT HOUSE MINORITY WHIP NEWT GINGRICH OF GEORGIA CALLS MR DOLE'S POSITION AN ENORMOUS MISTAKE THAT WILL MUDDY THE WATERS FOR REPUBLICANS SEEKING TO RECLAIM THE TAX ISSUE ONLY BY OPPOSING TAX INCREASES ACROSS THE BOARD HE SAYS CAN THE GOP DRAW CLEAR DIVISIONS WITH DEMOCRATS IN THE FIGHT FOR THE ALLEGIANCE OF MIDDLECLASS VOTERS THE PROBLEM IS THAT THE DEFICITCUTTING ALTERNATIVES ARE SO PAINFUL AND THUS THE BOLD CHALLENGE THE PRESIDENT LAID DOWN IN HIS SPEECH TO CONGRESS ALL THOSE WHO SAY WE SHOULD CUT MORE BE SPECIFIC QUICKLY THREW REPUBLICANS ON THE DEFENSIVE FOR EXAMPLE ANTITAX REPUBLICANS SAY THEY WANT TO CUT THE GOVERNMENT'S FASTGROWING ENTITLEMENT PROGRAMS BUT THE MOST PROMINENT GOP PLAN SO FAR TEXAS SEN PHIL GRAMM'S ALTERNATIVE BUDGET PROPOSAL CALLS ONLY FOR OVERALL CAPS ON SUCH SPENDING THAT DUCK POLITICAL FALLOUT BY NOT SPECIFYING WHO WOULD BE AFFECTED MOREOVER THOUGH MR GRAMM SAYS HE OPPOSES TAX INCREASES HIS PLAN WOULD NEED 55 BILLION IN ADDITIONAL TAXES TO ACHIEVE AS MUCH DEFICIT REDUCTION AS MR CLINTON DOES FOR HIS PART MR GINGRICH SAYS THE PRESIDENT DIDN'T CUT SPENDING ENOUGH BUT HE SAYS SOCIAL SECURITY SHOULD REMAIN SACROSANCT WORRIES THAT MR CLINTON WOULD SLICE TOO DEEPLY INTO DEFENSE AND CRITICIZES PROPOSED AGRICULTURE CUTS AS ANTIFARM OHIO REP JOHN KASICH THE TOP REPUBLICAN ON THE HOUSE BUDGET COMMITTEE RECENTLY CRITICIZED THE WHITE HOUSE FOR BENDING TO WHINING AND SQUEALING FROM TEXAS LAWMAKERS IN SPARING THE EXPENSIVE SPACE STATION AND SUPERCONDUCTING SUPERCOLLIDER PROGRAMS BUT SOME OF MR KASICH'S FELLOW REPUBLICANS AGREE WITH THE ADMINISTRATION COLORADO SEN HANK BROWN WOULDN'T KILL EITHER PROGRAM IN THE PROPOSED CUTS HE HANDED MR CLINTON WHEN THE PRESIDENT VISITED GOP LAWMAKERS ON CAPITOL HILL YESTERDAY OF COURSE THERE'S ANOTHER WAY OUT FOR ANTITAX DIEHARDS ADMIT THEY DON'T THINK DEFICIT REDUCTION IS THAT IMPORTANT BUT SLOUGHING OFF THE DEFICIT ISN'T AS EASY AS IT USED TO BE BEFORE ROSS PEROT CAME ALONG AND IN ANY CASE EVEN REPUBLICAN CONSERVATIVES ACKNOWLEDGE THAT IT WILL TAKE THE PARTY A WHILE TO OVERCOME LINGERING CYNICISM FROM THE BUSH ADMINISTRATION'S BROKEN READ MY LIPS PLEDGE IT'S NOT SO EASY TO RECLAIM YOUR VIRGINITY SAYS WILLIAM KRISTOL WHO WAS CHIEF OF STAFF TO FORMER VICE PRESIDENT DAN QUAYLE ADDS CLINTON POLLSTER STAN GREENBERG THE REPUBLICANS HAVE LOST ANY CREDIBILITY ON TAXES THE TARGET OF BOTH PARTIES' TAX RHETORIC OF COURSE IS THE MIDDLE CLASS THROUGHOUT THE 1980S REPUBLICANS COMBINED THEIR TRADITIONAL APPEAL AMONG THE AFFLUENT WITH ENTREATIES TO MIDDLECLASS TAXPAYERS WHO THOUGHT THE ONLY THING THEY GOT FROM MOST FEDERAL PROGRAMS WAS THE BILL NOW WITH MIDDLECLASS AMERICANS INCREASINGLY INSECURE ABOUT THEIR ECONOMIC PROSPECTS THE EDUCATION SYSTEM AND HEALTH CARE DEMOCRATS HOPE TO LINK THEIR INTERESTS WITH THE PARTY'S LOWERINCOME CONSTITUENCY BY ARGUING THAT PAYING MORE NOW WILL DELIVER BROADLY DISTRIBUTED BENEFITS LATER THE SUCCESS OF CLINTON'S EFFORT DEPENDS ON HIS ABILITY TO CONVINCE VOTERS THAT THERE'S A CONTRACT HERE SAYS DEMOCRATIC POLLSTER GEOFF GARIN THAT EFFORT IS OF MOST IMMEDIATE IMPORTANCE TO THE DEMOCRATIC SENATORS AND HOUSE MEMBERS WHO MUST FACE THE ELECTORATE IN 1994 BEFORE MOST OF THE ADMINISTRATION'S PROGRAM HAS HAD TIME TO WORK THE PRESIDENT IS GAMBLING THAT HIS COMBINATION OF STIMULUS INVESTMENT AND SHARED CONTRIBUTION WON'T COME TO RESEMBLE THE OLDFASHIONED DEMOCRATIC TAXANDSPEND APPROACH AS REPUBLICANS CLAIM PROMINENT DEMOCRATIC CENTRISTS ARGUE IF A BIT TENTATIVELY THAT THE ELEMENTS OF THE WHITE HOUSE PACKAGE PASS THE NEW DEMOCRAT TEST THEY ALL REINFORCE MAINSTREAM VALUES SAYS AL FROM PRESIDENT OF THE DEMOCRATIC LEADERSHIP COUNCIL THE MODERATE PARTY GROUP THAT MR CLINTON ONCE CHAIRED ANOTHER TEST COMES TWO MONTHS FROM NOW WITH THE RELEASE OF THE WHITE HOUSE HEALTHCARE REFORM PLAN WHICH IS EXPECTED TO PROPOSE MORE TAX INCREASES TO HELP FINANCE SOME 30 BILLION TO 90 BILLION IN ADDITIONAL SPENDING ANTITAX REPUBLICANS ARE COUNTING ON THE PUBLIC'S TOLERANCE TO WEAR THIN IN A HURRY GOP POLLSTER FRANK LUNTZ'S FONDEST HOPE IS THAT MR CLINTON WILL RECOMMEND A NATIONAL SALES TAX ON TOP OF HIS ENERGY TAX MR LUNTZ WHO WORKED FOR BOTH PAT BUCHANAN AND MR PEROT LAST YEAR LOOKS FORWARD TO MAKING VOTERS' BLOOD BOIL IN 1994 WITH TV COMMERCIALS BLAMING DEMOCRATS FOR RAISING THE COST OF EVERY TANK OF GAS AND DEPARTMENT STORE PURCHASE WE'LL KILL 'EM HE SAYS BUT CLINTON ADVISER JAMES CARVILLE MR ATWATER'S SUCCESSOR AS THE PREMIER GUTLEVEL STRATEGIST IN AMERICAN POLITICS SAYS IT WON'T WORK BECAUSE PEOPLE UNDERSTAND THAT SOMETHING'S GOT TO BE DONE IN A FIGHT BETWEEN ONE CANDIDATE WHO IS FOR CHANGE AND SOME TAXES AND ANOTHER WHO IS AGAINST CHANGE AND AGAINST TAXES HE SAYS GIVE ME THE FIRST GUY PLEASE TELL ME WHETHER YOU WOULD BE WILLING TO PAY HIGHER TAXES IN ORDER TO 9303030109 930303 DOROTHY HAMILL AGREES TO ACQUIRE ICE CAPADES PALM DESERT CALIF DOROTHY HAMILL HAS COME TO THE RESCUE OF THE ICE CAPADES AGREEING TO BAIL OUT THE ICE SHOW THAT EMPLOYED HER FOR NINE SEASONS AFTER HER OLYMPIC SKATING CAREER IN 1976 MS HAMILL'S COMPANY DOROTHY HAMILL INTERNATIONAL INC AGREED TO ACQUIRE THE ICE CAPADES FROM INTERNATIONAL BROADCASTING CORP WHICH HAS BEEN OPERATING UNDER BANKRUPTCYLAW PROTECTION SINCE 1991 THE AGREEMENT WAS MADE WITH INTERNATIONAL BROADCASTING'S PRIMARY LENDER NATIONAL WESTMINSTER BANK USA TERMS WEREN'T DISCLOSED MONEY FOR THE ACQUISITION WILL LARGELY BE PROVIDED BY MARTECH USA INC AN ENVIRONMENTAL CLEANUP FIRM BASED IN ANCHORAGE ALASKA AN ICE CAPADES SPOKESMAN SAID BEN TISDALE MARTECH'S CHAIRMAN CHIEF EXECUTIVE OFFICER AND MAJORITY SHAREHOLDER WILL SERVE AS CHAIRMAN OF THE NEW VENTURE MS HAMILL WILL BE PRESIDENT AND HER HUSBAND KENNETH FORSYTHE WILL BE CHIEF EXECUTIVE OFFICER THE ACQUISITION IS EXPECTED TO BE COMPLETED IN JUNE WHEN INTERNATIONAL BROADCASTING IS SET TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS MINNEAPOLISBASED INTERNATIONAL BROADCASTING WHICH ALSO OWNS THE HARLEM GLOBETROTTERS HAD 833 MILLION IN TOTAL ASSETS AND 844 MILLION IN LIABILITIES WHEN IT FILED FOR BANKRUPTCYLAW PROTECTION 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 9303030108 930303 PHARMOR EXOFFICIAL ADMITS TO 14 CHARGES CLEVELAND PATRICK B FINN FORMER CHIEF FINANCIAL OFFICER OF PHARMOR INC PLEADED GUILTY IN FEDERAL COURT TO 14 FRAUD MONEY LAUNDERING AND TAXRELATED CHARGES UNDER A PLEA AGREEMENT WITH THE US ATTORNEY'S OFFICE THE 34YEAROLD MR FINN COULD SERVE FROM 33 TO 41 MONTHS IN PRISON MR FINN WILL BE SENTENCED AFTER THE TRIAL OF MICHAEL I MONUS FORMER PHARMOR PRESIDENT AND COFOUNDER MR MONUS WHO WAS INDICTED ON 129 COUNTS BY A FEDERAL GRAND JURY HAS PLEADED INNOCENT PHARMOR A CLOSELY HELD DEEPDISCOUNT DRUGSTORE CHAIN UNDER COURT PROTECTION FROM CREDITORS HAS ALLEGED IT WAS THE VICTIM OF A 499 MILLION FRAUD AND EMBEZZLEMENT BY MESSRS MONUS AND FINN AND ANOTHER FORMER PHARMOR EXECUTIVE JEFFREY WALLEY WHO HAS PLEADED GUILTY TO FOUR FEDERAL COUNTS 9303030107 930303 TECHNOLOGY BRIEF EQUITABLE RESOURCES INC EQUITECH DIVISION INSTALLS RARE COMMERCIAL FUEL CELL EQUITABLE RESOURCES INC PITTSBURGH SAID ITS EQUITECH DIVISION INSTALLED THE FIRST COMMERCIAL FUEL CELL IN PITTSBURGH ONE OF ONLY FOUR IN THE COUNTRY THE FUEL CELL ESSENTIALLY CONVERTS NATURAL GAS DIRECTLY INTO ELECTRICITY AND HEAT WITHOUT COMBUSTION WHICH CUTS DOWN ON EMISSIONS AND NOISE EQUITABLE AN ENERGY COMPANY SAID THE CELLS CONVERT MORE THAN 80 OF THEIR NATURAL GAS INTO USABLE ENERGY MORE THAN DOUBLE THE EFFICIENCY OF A CONVENTIONAL FUEL PLANT EACH FUEL CELL CAN GENERATE 200 KILOWATTS ABOUT THE AMOUNT OF ENERGY NEEDED FOR 200 HOMES FOR A MONTH EQUITABLE WHICH HAS DEVELOPED BUSES THAT RUN ON NATURAL GAS SAYS THE FUEL CELLS COULD BE USED TO POWER CARS TRUCKS AND TRAINS 9303030106 930303 GE CAPITAL CUTS INTEREST RATE STAMFORD CONN GE CAPITAL SAID IT CUT THE CORE ANNUAL INTEREST RATE FOR ITS GE REWARDS MASTERCARD TO 169 FROM 184 TO ATTRACT MORE CARD MEMBERS WITH THE NEW RATE WHICH IS THE RATE GE CAPITAL EXPECTS TO CHARGE MOST CARD MEMBERS THE PROGRAM WILL HAVE THREE RATE TIERS 149 169 AND 184 IN ADDITION GE CAPITAL IS ELIMINATING THE 25 ANNUAL FEE FOR GE REWARDS RETROACTIVE TO LAST SEPTEMBER THE GE REWARDS CARD GIVES CARDHOLDERS DISCOUNT COUPONS AS WELL AS 2 BACK ON EVERY PURCHASE WITH THE REFUND IN THE FORM OF CHECKS THAT CAN BE USED AT A WIDE VARIETY OF STORES GE CAPITAL IS A UNIT OF GENERAL ELECTRIC CO OF FAIRFIELD CONN 9303030105 930303 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9303030104 930303 KMART POSTS JUMP IN ITS 4THPERIOD NET OF 12 ON 1 RISE IN SAMESTORE SALES BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP POSTED A 12 JUMP IN FISCAL FOURTHQUARTER NET INCOME ON A MEAGER 1 RISE IN SAMESTORE SALES REFLECTING ITS STRATEGY TO BOOST PROFIT MARGINS BY NOT RESORTING TO CHRISTMAS HOLIDAY MARKDOWNS IN THE QUARTER ENDED JAN 27 THE TROY MICH DISCOUNT RETAILER REPORTED NET OF 535 MILLION OR 115 A SHARE UP FROM 479 MILLION OR 106 A SHARE A YEAR EARLIER SALES AT NEW STORES AND THOSE OPEN AT LEAST A YEAR ROSE 87 TO 1147 BILLION FROM 1056 BILLION DURING THE QUARTER KMART'S SAMESTORE SALES INCREASE TRAILED COMPETITORS LIKE WALMART STORES INC AND SEARS ROEBUCK & CO SOME OF THE WEAKNESS REFLECTS THE COMPANY'S PRESENCE IN MICHIGAN AND CALIFORNIA WHERE THE ECONOMY HAS BEEN WEAK IN ADDITION THE COMPANY DIDN'T SLASH PRICES TO SPARK SALES AS IT HAS DONE IN PREVIOUS CHRISTMASES THE IMPROVED PROFITS SUGGEST THAT CUSTOMERS ARE MORE WILLING TO BUY KMART PRODUCTS AT FULL PRICE INDEED CHAIRMAN JOSEPH ANTONINI CONTENDED THAT CUSTOMERS ARE REACTING FAVORABLY TO KMART'S EFFORTS TO UPGRADE ITS MERCHANDISE AND RENOVATE ITS DISCOUNT STORES WITH SUCH FEATURES AS WIDER AISLES AND BETTER LIGHTING SO FAR 1300 ABOUT HALF OF ITS US STORES HAVE BEEN RENOVATED AS PART OF KMART'S FIVEYEAR 3 BILLION CAPITAL IMPROVEMENT PROGRAM MOODY'S INVESTORS SERVICE INC AND SOME RETAIL ANALYSTS HAVE EXPRESSED UNEASINESS RECENTLY ABOUT KMART'S TEPID SALES PERFORMANCE IN THE MIDST OF THE MASSIVE RENOVATION PROGRAM SOME ALSO SAID THEY ARE SKEPTICAL OF KMART'S ABILITY TO WOO PROFESSIONAL BUSINESSWOMEN AS CUSTOMERS AND SAID THEY WORRY THAT NO 1 WALMART WOULD CONTINUE TO STEAL CUSTOMERS BUT KMART'S LATEST NUMBERS CHEERED SOME YESTERDAY THE RESULTS INDICATE THAT KMART'S FASHION EMPHASIS IS BEGINNING TO PAY OFF SAID KURT BARNARD PUBLISHER OF NEW YORK'S RETAIL MARKETING REPORT KMART'S PROFITS ALSO REFLECT EFFORTS TO HOLD DOWN EXPENSES A STEP ESSENTIAL IF IT IS TO PRESERVE MARGINS IN AN INCREASINGLY COMPETITIVE INDUSTRY KMART'S SELLING GENERAL AND ADMINISTRATIVE EXPENSES FELL SLIGHTLY LAST YEAR DUE TO THE EFFECTIVENESS OF COST CONTROL PROGRAMS PRIMARILY AT THE KMART STORE DIVISION AND REDUCED ADVERTISING EXPENSE THE COMPANY SAID ADDITIONALLY KMART'S FASTGROWING SPECIALTYSTORES DIVISION WHICH INCLUDES ITS BUILDERS SQUARE AND SPORTS AUTHORITY CHAINS PERFORMED WELL DURING THE QUARTER AND THE COMPANY EXPECTS CONTINUING GAINS THIS YEAR THE PACE MEMBERSHIP WAREHOUSE CHAIN HOWEVER CONTINUED TO LIMP ALONG ITS OPERATING PROFIT PLUNGED 57 IN THE QUARTER THAT DIVISION HAS SUFFERED PARTLY BECAUSE OF A RECENT SOFTNESS IN THE WAREHOUSE INDUSTRY FOR ALL OF FISCAL 1993 KMART'S NET ROSE 95 TO 941 MILLION OR 206 A SHARE INCLUDING A PERSHARE CHARGE OF THREE CENTS RELATING TO THE BANKRUPTCY OF BARGAIN HAROLD'S A CANADIAN UNIT THE COMPANY SOLD IN 1990 IN FISCAL 1992 NET WAS 859 MILLION OR 202 A SHARE PERSHARE AMOUNTS REFLECT A 74 INCREASE IN THE NUMBER OF SHARES OUTSTANDING AS WELL AS A 2FOR1 STOCK SPLIT SAMESTORE SALES FOR THE YEAR ROSE 26 AND TOTAL SALES INCREASED 91 TO 3772 BILLION IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING KMART SHARES WERE QUOTED AT 24375 UP 75 CENTS 9303030103 930303 CANADIAN PROVINCES LIMIT USE OF CFCS AS COOLANT FOR CARS TORONTO SEVERAL CANADIAN PROVINCES ARE TAKING MEASURES TO MAKE AUTOMOBILE AIR CONDITIONERS OZONEFRIENDLY AND THE CONSUMER IS EXPECTED TO HAVE TO FOOT MOST OF THE BILL BRITISH COLUMBIA LAST WEEK PASSED A LAW PROHIBITING THE USE OF OZONEDEPLETING SUBSTANCES WHEN RECHARGING A VEHICLE'S AIR CONDITIONER AFTER 1996 NEW BRUNSWICK LAST FALL PASSED A SIMILAR LAW EFFECTIVE AT THE END OF THIS YEAR THE NEW RULES ARE BELIEVED TO BE THE FIRST IN NORTH AMERICA AIMED AT REDUCING THE WIDESPREAD USE OF CHLOROFLUORCARBONS OTHERWISE KNOWN AS CFCS IN EXISTING AUTOMOBILE AND TRUCK AIR CONDITIONERS MAJOR INDUSTRIAL COUNTRIES HAVE AGREED TO PHASE OUT THE PRODUCTION OF CFCS WHICH DEPLETE THE EARTH'S OZONE LAYER THE US ENVIRONMENTAL PROTECTION AGENCY HAS PROPOSED BANNING NEW PRODUCTION OR IMPORTS OF THE SUBSTANCE AFTER 1995 BUT DOESN'T PLAN TO RESTRICT THE USE OF CFCS AS LONG AS SUPPLIES ARE AVAILABLE AN EPA SPOKESMAN SAID THE CANADIAN LEGISLATION MEANS THAT MANY MOTORISTS IN BRITISH COLUMBIA AND NEW BRUNSWICK WILL HAVE TO PAY BETWEEN 200 AND 1000 EACH TO HAVE THEIR CARS' AIR CONDITIONERS RETROFITTED TO RUN ON REFRIGERANTS THAT DON'T CONTAIN CFCS COOLANTS CONTAINING CFCS HAVE BEEN THE CARINDUSTRY STANDARD ALTHOUGH MOST AUTO MAKERS PLAN TO INSTALL ONLY OZONESAFE AIR CONDITIONERS IN THEIR NEW CARS AND TRUCKS BY THE FALL OF 1994 ROGER THOMAS IN CHARGE OF REGULATORY ISSUES AT GENERAL MOTORS OF CANADA LTD OF OSHAWA ONTARIO SAID HE ISN'T CONCERNED ABOUT THE NEW CANADIAN LAWS FROM A FINANCIAL STANDPOINT BUT HE SAID HE IS WORRIED ABOUT IRATE CUSTOMERS THEY'RE GOING TO COMPLAIN TO US WHEN THEY FORK OUT THE MONEY FOR A RETROFIT HE SAID GM CANADA WHOLLY OWNED BY GENERAL MOTORS CORP WILL PAY THE COST OF RETROFITTING CARS THAT ARE UNDER WARRANTY IN THOSE PROVINCES WHERE IT IS REQUIRED HE SAID OTHER CANADIAN PROVINCES ALSO ARE EXPECTED TO PASS LAWS RELATED TO OZONEDEPLETING SUBSTANCES AND AUTO INDUSTRY OFFICIALS WANT REGULATORS TO STANDARDIZE THESE LAWS MR THOMAS SAID INDUSTRY REPRESENTATIVES WILL MEET TOMORROW WITH ONTARIO REGULATORS TO DISCUSS LEGISLATION THAT IS BEING DRAFTED IN THAT PROVINCE 9303030102 930303 MARKETING & MEDIA ADVERTISING SONY'S AD BOLDLY GOES WHERE NO AD HAS GONE BEFORE BY KEVIN GOLDMAN COLUMBIA PICTURES IS ABOUT TO PUSH ADVERTISING CLUTTER TO A NEW STRATOSPHERE THE SONY CORP UNIT SAID IT WILL BECOME THE FIRST AND ONLY PAID ADVERTISER TO APPEAR ON 515 FEET OF PRIME AD SPACE THE MAIN FUSELAGE AND BOOSTER ROCKET OF AN UNMANNED COMMERCIAL SPACE MISSION SCHEDULED TO BE LAUNCHED DURING THE FIRST TWO WEEKS OF MAY COLUMBIA WILL PLASTER THE ROCKET AND BOOSTER ROCKETS WITH THE LOGO OF ITS BIGBUDGET SUMMER MOVIE RELEASE LAST ACTION HERO STARRING ARNOLD SCHWARZENEGGER THE MUSCLELADEN STAR'S MUG WON'T BE FEATURED ON THE SIDE OF THE CONESTOGA 1620 EXPENDABLE ROCKET POSSIBLY OUT OF FEAR OF FRIGHTENING ANY ALIENS OUT THERE IN SPACE THE MOVIE'S LOGO ALSO WILL BE FEATURED ON THE PAYLOAD WHICH WILL BE ORBITING EARTH FOR MORE THAN TWO YEARS LONG AFTER LAST ACTION HERO HAS APPEARED IN THEATERS AND ON CABLETELEVISION AND HAS BEEN RELEASED ON HOME VIDEOCASSETTES COLUMBIA IS PAYING 500000 A PITTANCE CONSIDERING THE PUBLICITY IT HOPES TO GENERATE AND THE FACT THAT IT COST 850000 FOR A HALFMINUTE ADVERTISEMENT ON THE SUPER BOWL THIS YEAR THE MOVIE MAKER SAYS IT BEAT OUT DOZENS OF OTHER COMPANIES THAT WANTED TO BLAST OFF INTO SPACE AS THE FIRST ADVERTISER BUT DECLINES TO IDENTIFY THEM THE MISSION IS A JOINT VENTURE OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND A PRIVATEINDUSTRY CONSORTIUM BUT HOW MANY VIEWERS WILL SEE THE ROCKETSHIP IT ISN'T CERTAIN THAT THE MAJOR NETWORKS OR EVEN CNN WILL CARRY THE LAUNCH OF AN UNMANNED COMMERCIAL SPACE FLIGHT CNN USUALLY BROADCASTS LIVE SPACE MISSIONS WITH ASTRONAUTS BUT COLUMBIA EXECUTIVES BRAZENLY PREDICT THIS FLIGHT IS AN EXCEPTION SIMPLY BECAUSE IT IS CARRYING THE COLUMBIA AD WHICH WILL FEATURE THE NAME OF THE FILM IN LARGE RED YELLOW AND ORANGE LETTERS AND THEY ARE OBVIOUSLY HOPING FOR SOME PUBLICITY JUST FOR PLACING THE AD ON THE ROCKET IN THE FIRST PLACE LAST ACTION HERO IS ABOUT AN 11YEAROLD WHO SUDDENLY IS BLASTED OUT OF HIS SEAT AND INTO AN ACTION FILM STARRING MR SCHWARZENEGGER COLUMBIA IS ALREADY SPENDING A SMALL FORTUNE TO LAUNCH THE MOVIE INCLUDING MERCHANDISE TIEINS AND VIDEO GAMES PREVIEWS OF THE MOVIE SHOW MR SCHWARZENEGGER SPORTING HIS TRADEMARK MENACING GRIN AND STARING BLANKLY INTO THE AUDIENCE SAYING NOT YET COME BACK THIS SUMMER THE SCHEDULED MAY LAUNCH IS THE FIRST OF THREE PLANNED MISSIONS FROM A NASA PROGRAM TITLED THE COMMERCIAL EXPERIMENT TRANSPORTER OR COMET SOME MAJOR COMPANIES WERE APPROACHED BY SPACE MARKETING INCLUDING PEPSICO BUT DECLINED LONG AGO MICHAEL LAWSON CHIEF EXECUTIVE OFFICER OF SPACE MARKETING SAYS THAT FAST FOOD INSURANCE AND COMPUTER COMPANIES EXPRESSED INTEREST IN SPONSORING BUT ALL LOST OUT TO COLUMBIA GOSH WE EVEN HAD A RECORD COMPANY CALL HE BOASTS DECLINING TO ELABORATE ONE PERSON WITH KNOWLEDGE OF THE PROCESS SAYS THAT EVEREADY BATTERY AND PROCTER & GAMBLE ALSO WERE INTERESTED EVEREADY COULDN'T BE REACHED FOR COMMENT AND A P&G SPOKESWOMAN SAYS IT'S HARD TO IMAGINE HOW THE PROFILE OF THIS ADVERTISING VEHICLE WOULD MATCH THOSE OF OUR BRANDS THE LOGO OF LAST ACTION HERO IS POSITIONED ON THE SPACECRAFT COLUMBIA EMPHASIZES TO BE SHOWN OFF IN ANY TELEVISION CAMERA ANGLE A PHOTOGRAPH OF THE ROCKETSHIP SHOWS AS IN ANY MOVIE MARQUEE MR SCHWARZENEGGER'S NAME IS LARGER THAN THE FILM'S TITLE THERE WAS PLENTY OF ROOM FOR MORE LOGOS FROM OTHER COMPANIES BUT NOT EVEN THE SUDDENLY COMMERCIALSAVVY NASA AND SPACE MARKETING WANTED TO GO OVERBOARD SAYS MR LAWSON WE DIDN'T WANT TO MAKE THE ROCKET LOOK LIKE THE INDIANAPOLIS 500 RACE CAR THE PROMOTION ALSO INCLUDES A 900NUMBER FROM AMERICAN TELEPHONE & TELEGRAPH CO FOR 350 A CALLER CAN LEAVE A MESSAGE THAT WILL BE SENT INTO SPACE ON SOME FORM OF DIGITAL TAPE WHO WILL HEAR THESE MESSAGES IS OPEN TO DEBATE PROCEEDS FROM THE CALLS WILL BE USED TO HELP DEFRAY THE PRIVATE SECTOR'S FUNDING OF SCIENTIFIC RESEARCH COLUMBIA AND NASA SAY THE PLAN WAS PUT TOGETHER BY SPACE MARKETING A ROSWELL GA COMPANY THAT ACTED AS A BROKER TO PUT THE SPACE AGENCY TOGETHER WITH AN ADVERTISER ASKED WHY COLUMBIA WAS CHOSEN OVER OTHER SPONSORS VYING FOR THE RIDE INTO SPACE A SPACE MARKETING SPOKESMAN SAYS THE ACTION FILM WAS A NATURAL FIT PETE RIORDAN VICE PRESIDENT OF OUTOFHOME AND NONTRADITIONAL MEDIA AT OMNICOM GROUP'S BBDO SAYS THIS CERTAINLY IS A MEDIA VEHICLE BUT SERIOUSLY COLUMBIA IS RELYING ON OTHER MEDIA SUCH AS NEWSPAPERS AND TELEVISION TO CARRY PICTURES OF THIS ROCKET AS OPPOSED TO PEOPLE SEEING THIS FIRSTHAND IT'S A GREAT PROMOTIONAL EVENT AND LIKE A ROCKET CAN PROBABLY ONLY BE USED ONCE THE PHYSICIANS COMMITTEE FOR RESPONSIBLE MEDICINE A WASHINGTON ADVOCACY GROUP HAS COMPLAINED TO MCDONALD'S CORP AND THE FEDERAL TRADE COMMISSION ABOUT A MCDONALD'S HAPPY MEAL PROMOTION LINKED TO THE AGRICULTURE DEPARTMENT'S PYRAMIDSHAPED FOOD GUIDE NEAL BARNARD PRESIDENT OF THE COMMITTEE COMPLAINED ABOUT BOOKLETS THAT MCDONALD'S IS DISTRIBUTING THIS MONTH WITH HAPPY MEALS AS PART OF ITS FOOD FUNDAMENTALS CAMPAIGN DR BARNARD SINGLED OUT THE BOOKLET'S CLAIM THAT EATING MEAT CAN MAKE IT EASIER TO DO THINGS LIKE CLIMB HIGHER AND RIDE YOUR BIKE FARTHER THE PHYSICIANS COMMITTEE IS BEST KNOWN FOR OPPOSING THE USE OF ANIMALS IN MEDICAL RESEARCH IT COUNTS 3000 ACTUAL PHYSICANS AMONG ITS 65000 MEMBERS THE COMMITTEE FAVORS A TRAPEZOIDSHAPED NUTRITION GUIDE OMITTING SWEETS AND DAIRY AND MEAT PRODUCTS FROM THE DIET ALTOGETHER IT IS IMPOSSIBLE TO IMAGINE THAT ANY OF YOUR CUSTOMERS CHILDREN OR ADULTS NEED EXTRA ENCOURAGEMENT TO INCLUDE MEAT IN THEIR DIETS DR BARNARD SAID IN A LETTER ADDRESSED TO MCDONALD'S HE SUGGESTED BETTER ADVICE WOULD BE PROMOTING THE CONSUMPTION OF FRUITS AND VEGETABLES ITEMS FOR WHICH YOUR MENU IS DEFICIENT MCDONALD'S SAID IT STANDS BY THE CAMPAIGN NOTING IT WAS APPROVED BY THE AMERICAN DIETETIC ASSOCIATION ACCOUNT TRUE VALUE HARDWARE A UNIT OF COTTER & CO TAPPED CHICAGO SHOP MCCONNAUGHY STEIN SCHMIDT BROWN TO HANDLE ITS 20 MILLION RETAIL ACCOUNT PREVIOUSLY HANDLED INHOUSE THE CHICAGO OFFICE OF SAATCHI & SAATCHI CO'S CME KHBB AND MEYER & WALLIS MILWAUKEE ALSO PARTICIPATED IN THE REVIEW FINALISTS KLM ROYAL DUTCH AIRLINES HAS NARROWED THE REVIEW FOR ITS ESTIMATED 5 MILLION US AD ACCOUNT TO FOUR NEW YORK FINALISTS INDUSTRY EXECUTIVES SAID THEY ARE ROSS ROY GROUP'S CALET HIRSCH & FERRELL KIRSHENBAUM & BOND PARTNERS & SHEVACK AND WEISS WHITTEN CARROLL STAGLIANO THE INCUMBENT IS ANGOTTI THOMAS HEDGE KLM OFFICIALS COULDN'T BE REACHED 9303030101 930303 LETTERS TO THE EDITOR WISDOM FROM BEN IN RESPONSE TO YOUR FEB 3 PAGEONE ARTICLE IT'S OK TO BE SINGLE BUT MARRIAGE STILL IS A TOUTED POSSIBILITY WHICH INCLUDED BEN FRANKLIN'S REASONS WHY A YOUNG MAN SHOULD MARRY AN OLDER WOMAN YOU OMITTED THE TITLE OF HIS WORK ON THE CHOICE OF A MISTRESS 9303030100 930303 HEALTH CURING HEALTH CARE STATES TAKE ON THE JOB OF HOLDING DOWN MEDICAL COSTS OF WORKERS' COMPENSATION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE COST OF TREATING INJURED WORKERS IS SOARING BUT STATE GOVERNMENTS AREN'T WAITING FOR WASHINGTON TO REIN IN MEDICAL EXPENSES THEY'RE PUSHING AHEAD WITH THEIR OWN PLANS TO COMBAT HIGH WORKERS' COMPENSATION COSTS CLEARING THE WAY FOR BUSINESSES TO REVIEW XRAY BILLS FOR EXAMPLE OR ADVISE EMPLOYEES WHICH DOCTORS TO USE MANY OF THE STEPS ARE CONTROVERSIAL AND RAISE QUESTIONS ABOUT WHETHER WORKERS ARE BEING SHORTCHANGED SO FAR THE EFFORTS HAVE GONE LARGELY UNNOTICED IN CONGRESS BUT IF THE CURRENT WAVE OF COST CUTTING THREATENS THE QUALITY OF CARE WORKERS' COMPENSATION COULD BECOME A FEDERAL ISSUE ALREADY THERE ARE RUMBLINGS THAT THE CLINTON ADMINISTRATION WILL TAKE IT UP AS PART OF HEALTHCARE REFORM IN ADDITION ORGANIZED LABOR IS CALLING FOR ACTION IT'S TIME THAT CONGRESS LOOKED SERIOUSLY AT THIS SAYS JAMES ELLENBERGER ASSISTANT DIRECTOR OF THE AFLCIO IN WASHINGTON AT THE TURN OF THE CENTURY WORKERS HURT ON THE JOB HAD LITTLE CHANCE OF GETTING THEIR EMPLOYER TO PAY FOR MEDICAL TREATMENT OR LOST WAGES A WORKER WHO FOR INSTANCE LOST A LEG AT THE FACTORY OFTEN ENDED UP DESTITUTE THEN IN 1910 WISCONSIN BECAME THE FIRST STATE TO ADOPT A SYSTEM OF WORKERS' COMPENSATION UNDER THE RULES EMPLOYERS HAD TO COMPENSATE WORKERS HURT ON THE JOB REGARDLESS OF WHO WAS AT FAULT IN RETURN WORKERS GAVE UP THEIR RIGHT TO SUE EMPLOYERS WORKERS' COMPENSATION SYSTEMS VARY WIDELY FROM STATE TO STATE BUT ONE THING THEY SHARE IS THE PROBLEM OF RISING MEDICAL COSTS EMPLOYERS NOW PAY 40 BILLION A YEAR TO COMPENSATE AND CARE FOR INJURED WORKERS WITH 4 IN EVERY 10 GOING TO PAY MEDICAL BILLS WHILE GENERAL HEALTHCARE COSTS INCREASED 8 A YEAR OVER THE LAST DECADE THE MEDICAL PART OF WORKERS' COMPENSATION ROSE EVEN FASTER AT 11 A YEAR ONE REASON FEWER COST CONTROLS ON OCCUPATIONAL MEDICINE RESPONDING TO THE CRISIS BUSINESS LABOR AND OTHERS ARE WORKING ON WAYS TO HOLD DOWN COSTS EVERYBODY CAN AGREE ON SOME SOLUTIONS GREATER ATTENTION TO SAFETY FOR EXAMPLE BOSTONBASED LIBERTY MUTUAL INSURANCE CO AND HARTFORDBASED TRAVELERS CORP HAVE SAVED MONEY FOR BUSINESSES BY DISPATCHING SAFETY AUDITORS TO FACTORIES THE INSPECTORS LOOK FOR HEALTH HAZARDS AND RECOMMEND WAYS TO PREVENT WORKERS FROM HURTING THEMSELVES BUT OTHER METHODS ARE MORE CONTROVERSIAL PENNSYLVANIA OFFICIALS ARE NOW WRESTLING WITH SEVERAL PROPOSALS FOR CHANGE KICKING UP A STORM AMONG INTEREST GROUPS LAST SEPTEMBER BUSES LOADED WITH 1500 BUSINESS EXECUTIVES DESCENDED ON HARRISBURG PA TO LOBBY LAWMAKERS FOR AGGRESSIVE COST CONTROLS LABOR COUNTERED WITH A SERIES OF DEMONSTRATIONS INSIDE THE STATE CAPITAL BUILDING ONE THING PENNSYLVANIA LAWMAKERS SEEM TO HAVE AGREED ON DESPITE PROTESTS FROM DOCTORS IS LIMITS ON HOW MUCH PHYSICIANS AND HOSPITALS CAN CHARGE FOR SPECIFIC SERVICES BUT LAWMAKERS ARE STILL FIGHTING OVER WHETHER TO GIVE EMPLOYERS MORE SAY OVER THE CHOICE OF DOCTORS THEIR WORKERS CAN USE A CHANGE THAT BUSINESS ARGUES IS ESSENTIAL TO CONTAIN COSTS AS IN MOST STATES EMPLOYEES IN PENNSYLVANIA CAN GENERALLY PICK THEIR OWN DOCTOR FOR JOBRELATED INJURIES IN A PANEL DISCUSSION EARLIER THIS MONTH THAT AIRED ON MORE THAN 100 TELEVISION STATIONS INTEREST GROUPS SQUARED OFF OVER THE ISSUE BILL GEORGE HEAD OF THE STATE'S AFLCIO WORRIED ABOUT COMPANY DOCTORS RUSHING PEOPLE BACK TO WORK BEFORE THEY WERE READY CITING HIS OWN EXPERIENCES AS A STEELWORKER IN ALIQUIPPA PA HE SAID DOCTORS CONTROLLED BY EMPLOYERS OR THEIR INSURERS WOULD NOT HAVE WORKERS' BEST INTERESTS IN MIND BUSINESS GROUPS SAID THAT HIS FEARS WERE EXAGGERATED AND THAT THE LEGISLATIVE PROPOSALS IN THE STATE OFFER PROTECTION FOR WORKERS OREGON A STATE REGARDED AS A LEADER IN WORKERS' COMPENSATION REFORM HAS GOTTEN AROUND COMPANY DOCTOR WORRIES BY STRIKING A COMPROMISE BEGINNING IN 1990 WORKERS GENERALLY LOST THE RIGHT TO PICK ANY DOCTOR THEY WANTED BUT THE EMPLOYER DIDN'T GET COMPLETE CONTROL EITHER WORKERS CAN PICK FROM SEVERAL HUNDRED DOCTORS WHO ARE MEMBERS OF STATELICENSED HEALTHCARE NETWORKS THE HEALTHCARE NETWORKS NOT SPECIFIC DOCTORS ARE CHOSEN BY THE EMPLOYER'S INSURANCE COMPANY USING THE SAME PRACTICES THAT HEALTH MAINTENANCE ORGANIZATIONS BROUGHT TO HEALTH INSURANCE THE NETWORKS DEMAND THAT THEIR DOCTORS JUSTIFY THE NEED FOR SURGERY AND RESPOND QUICKLY TO QUESTIONS ABOUT WHETHER AN EMPLOYEE CAN RETURN TO WORK THEY MUST ALSO MONITOR HOW LONG AN INJURED WORKER SPENDS IN THE HOSPITAL AND REVIEW THEIR TREATMENT WITH FELLOW PHYSICIANS THE STATE ACCIDENT INSURANCE FUND A WORKERS' COMPENSATION INSURANCE COMPANY OWNED BY THE STATE OF OREGON COVERS MORE THAN HALF OF OREGON'S BUSINESSES PAMELA CHRITTON A MANAGER FOR THE COMPANY CONCEDES THAT THE PROCEDURES CAN BE CUMBERSOME BUT SHE CONTENDS THEY CAN ALSO MAKE FOR BETTER HEALTH CARE BECAUSE THE DOCTORS ARE EXPERTS IN OCCUPATIONAL MEDICINE SHE CITES THE CASE OF A WORKER WITH AN ARTIFICIAL HIP WHO SUFFERED FROM INTENSE PAIN THE WORKER'S DOCTOR WAS STUMPED SO HE DECIDED TO PUT THE WORKER ON PAIN RELIEVERS BUT A MANDATORY SECOND OPINION DISCOVERED THE WORKER NEEDED A NEW HIP THIS ISN'T JUST CHEAPER CARE MS CHRITTON SAYS MARK DAVISON A RISK MANAGER FOR SAFEWAY INC ONE OF THE STATE'S LARGEST EMPLOYERS SAYS IT'S TOO EARLY TO TELL WHETHER THE CHANGES WILL SAVE HIS COMPANY MONEY BUT HE'S ENCOURAGED BY WHAT HE HAS SEEN SO FAR IF IT WORKS THE WAY IT'S SUPPOSED TO WORK PEOPLE WILL GET BETTER QUICKER AND THAT REDUCES COSTS HE SAYS ORGANIZED LABOR WHICH AGREES THAT COSTS HAVE TO BE CONTAINED HAS SOME RESERVATIONS THERE'S NO QUESTION THE REFORMS WILL SAVE MONEY BUT MOST OF THE SAVINGS IS AT THE EXPENSE OF WORKERS SAYS BRAD WITT OF THE OREGON AFLCIO TRIAL LAWYERS ALSO QUESTION THE BENEFITS SAYING THE WORKER HAS FEWER RIGHTS TO APPEAL A DENIED CLAIM THEY ALSO QUESTION WHETHER THE INSURANCE COMPANIES SOMETIMES MEDDLE WITH INDIVIDUAL CASES THEY BRAG ABOUT SAVINGS BUT I THINK THE SAVINGS COME FROM WORKERS BEING DENIED BENEFITS SAYS LINDA LOVE PRESIDENT OF OREGON WORKERS COMPENSATION ATTORNEYS A TRADE GROUP BECAUSE MEDICAL PAYMENTS UNDER WORKERS' COMPENSATION ACCOUNT FOR ONLY A SMALL PIECE OF THE 900 BILLION A YEAR THAT AMERICANS PAY FOR HEALTH CARE LOBBYISTS SAY IT'S UNLIKELY CONGRESS WILL OVERHAUL WORKERS' COMPENSATION WHEN IT TACKLES HEALTHCARE REFORM LATER THIS YEAR NEVERTHELESS WHAT HAPPENS WITH HEALTHCARE REFORM IS SURE TO AFFECT WORKERS' COMPENSATION PRESIDENT CLINTON'S MANAGED COMPETITION IDEA EMBRACES THE NOTION OF HMOSTYLE METHODS TO HOLD DOWN MEDICAL COSTS IF MANAGED COMPETITION SUCCEEDS IT COULD HELP EASE CONCERNS ABOUT COMPANY DOCTORS AND BRING TO OTHER STATES THE SORTS OF REFORMS BEING TESTED IN OREGON THE BROADER THE HEALTHCARE REFORM THE GREATER THE IMPACT ON WORKERS' COMPENSATION SAYS DAVID NORTH A SENIOR VICE PRESIDENT FOR JOHNSON & HIGGINS AN INSURANCE BROKER CONGRESS LOOKED AT WORKERS' COMPENSATION ONCE BEFORE IN 1972 THE NATIONAL COMMISSION ON WORKMAN'S COMPENSATION RECOMMENDED WAYS TO IMPROVE THE SYSTEM RATHER THAN TRYING TO CONTROL COSTS THOUGH IT SUGGESTED WAYS TO EXPAND BENEFITS AND EASE THE QUALIFICATION REQUIREMENTS FOR COVERAGE SINCE THEN STATES HAVE ADOPTED SOME OF THE RECOMMENDATIONS IN THE LAST CONGRESS THERE WAS TALK ABOUT STUDYING FEDERAL STANDARDS FOR WORKERS' COMPENSATION COVERAGE BUT THE IDEA IS RESISTED BY STATES THAT FEAR NEW STANDARDS WOULD PUT DEBILITATING BURDENS ON BUSINESS PROBLEM MEDICAL COSTS FOR JOBRELATED INJURIES ARE RISING EVEN FASTER THAN HEALTHCARE COSTS IN GENERAL COST INSURERS AND COMPANIES THAT SELFINSURE PAY 20 BILLION A YEAR FOR MEDICAL CARE FOR INJURED WORKERS 9303030099 930303 CALTON INC REORGANIZATION PLAN MANALAPAN NJ CALTON INC SAID IT RECEIVED ENOUGH VOTES FROM DEBTHOLDERS TO SEEK US BANKRUPTCY COURT CONFIRMATION OF A PROPOSED PREPACKAGED REORGANIZATION PLAN THE HOMEBUILDING COMPANY SAID IT EXPECTS TO FILE A PETITION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE NEXT WEEK THE COMPANY IS STILL OPERATING ITS HOUSING BUSINESS AND SAID IT DOESN'T THINK THE REORGANIZATION WILL ADVERSELY AFFECT ITS HOMEBUYERS SUBCONTRACTORS OR SUPPLIERS 9303030098 930303 BOMB EXPERTS HIT SETBACKS IN INVESTIGATION POOR QUALITY MARS TAPES OF TRADE CENTER GARAGE FORENSIC WORK HELD UP BY WILLIAM M CARLEY AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL FEDERAL INVESTIGATORS HAVE ENCOUNTERED A NUMBER OF SETBACKS IN THE WORLD TRADE CENTER BOMBING CASE AND THEY INDICATED THE INVESTIGATION MAY WELL TAKE MONTHS TO COMPLETE THE SETBACKS INCLUDE VIDEOTAPES WHOSE QUALITY IS SO POOR THAT THEY MIGHT NOT SHOW AS HAD BEEN HOPED A SUSPICIOUS VEHICLE ENTERING THE WORLD TRADE CENTER GARAGE IT'S BELIEVED THAT THE BOMB WAS CARRIED INTO THE GARAGE BY AN AUTO OR VAN FEDERAL OFFICIALS ARE ALSO UNABLE TO GET A GOOD LOOK AT THE BOMB SITE DUE TO CONTINUING STRUCTURAL WEAKNESSES HOLDING UP FORENSIC INVESTIGATIONS AND OTHER AVENUES OF INVESTIGATION HAVE THUS FAR PROVED FRUITLESS AS A RESULT JAMES FOX CHIEF OF THE FEDERAL BUREAU OF INVESTIGATION OFFICE IN NEW YORK SAID HE IS STILL UNABLE TO PINPOINT ANY GROUP THAT MIGHT BE RESPONSIBLE FOR ONE OF THE MOST SPECTACULAR BOMBINGS IN RECENT US HISTORY INVESTIGATORS HAD HOPED THAT SURVEILLANCE VIDEOTAPES WOULD SHOW VEHICLES AND THEIR LICENSE PLATES AND POSSIBLY EVEN A HEAVILY LADEN AUTO OR VAN THAT MIGHT HAVE BEEN CARRYING THE BOMB HOWEVER IN AN INTERVIEW MR FOX SAID THE VIDEOTAPES FROM A SURVEILLANCE CAMERA AT THE CENTER'S GARAGE HAVE TURNED OUT TO BE OF VERY POOR QUALITY IT'S POSSIBLE THAT THE TAPES COULD BE ENHANCED ENOUGH TO SHOW CARS ENTERING THE PARKING COMPLEX BUT THAT ISN'T KNOWN YET HE SAID IN ADDITION ONE TAPE FROM THE SURVEILLANCE CAMERA IS MISSING THE TAPES FROM THE CAMERA RUN FROM 8 AM WEDNESDAY TO 8 AM SATURDAY EXCEPT FOR A POSSIBLE CRUCIAL TIME PERIOD FROM 8 AM THURSDAY TO 8 AM FRIDAY THAT TAPE IS MISSING THE BOMB EXPLODED AT 1218 PM FRIDAY MR FOX INDICATED THE TAPE MIGHT HAVE BEEN MISPLACED BY A WORKER AND STILL MIGHT BE FOUND ANOTHER UNCERTAINTY MR FOX ADDED IS WHERE THE SURVEILLANCE CAMERA WAS PLACED IT MIGHT HAVE BEEN PLACED WHERE VEHICLES OF CONTRACT WORKERS ENTER THE GARAGE OR AT ONE OF THE THREE ENTRANCES USED BY THE PUBLIC PLACEMENT OF THE CAMERA IF THE TAPE DOES SHOW A SUSPICIOUS VEHICLE WOULD HELP DIRECT THE FBI TO SEARCH EITHER FOR A DISGRUNTLED CONTRACT WORKER OR A MEMBER OF THE PUBLIC THERE MAY BE STILL OTHER VIDEO CAMERAS WITH TAPES BURIED BENEATH THE RUBBLE IN THE WORLD TRADE CENTER MR FOX ADDED HE SAID SOME WORKERS OF THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OPERATES THE WORLD TRADE CENTER CONTENDED THAT ADDITIONAL VIDEO CAMERAS HAD BEEN INSTALLED BUT HE SAID PORT AUTHORITY MANAGERS WERE SAYING THEY HADN'T YET BEEN INSTALLED WE HAVE A LITTLE CONFUSION HERE THE FBI OFFICIAL SAID ANOTHER PROBLEM HAMPERING INVESTIGATORS IS THEIR INABILITY TO INSPECT THE BOMB SITE FOR FEAR MORE CONCRETE WALLS MIGHT COLLAPSE ON THEM WE ARE ABSOLUTELY AT THE MERCY OF THE ENGINEERS IN GETTING ACCESS TO THE SITE MR FOX SAID THAT'S HOLDING UP FORENSIC WORK AND IS VERY FRUSTRATING MR FOX SAID IF WE COULD GET IN THERE WE COULD COMPLETE THE IMMEDIATE FORENSIC WORK SUCH AS TESTING FOR BOMB CHEMICAL RESIDUES WITHIN 24 TO 48 HOURS THE FBI OFFICIAL SAID BUT THEN HE ADDED THE RUBBLE HAS TO BE REMOVED AND SIFTED BIT BY BIT TO LOOK FOR FRAGMENTS OF DETONATORS TIMERS AND WIRING COMPLETING THAT MR FOX SAID WILL TAKE MONTHS THE FBI ALSO HAS BEEN FRUSTRATED BY THE MORE THAN 50 CALLS CLAIMING CREDIT FOR THE BOMBING NOT ONE OF THE CALLS CONTAIN ANY SPECIFICS ABOUT THE CRIME WHICH WOULD INDICATE THE CALL IS CREDIBLE MR FOX SAID IT'S TYPICAL THAT AUTHORITIES GET CRANK CALLS FOLLOWING A HIGHLY PUBLICIZED BOMBING THE FBI IS ALSO INTERVIEWING OWNERS OF THE MORE THAN 200 CARS PARKED IN THE GARAGE AT THE TIME OF THE BLAST THE OWNERS CAN BE TRACKED DOWN BECAUSE LICENSE PLATE NUMBERS ARE RECORDED IN FULL WHEN A VEHICLE ENTERS THE WORLD TRADE CENTER GARAGE BUT THUS FAR THE INTERVIEWS HAVEN'T TURNED UP ANY LEADS MR FOX SAID MEANTIME THE CITY OF NEW YORK AND THE PORT AUTHORITY ARE MAKING ARRANGEMENTS TO OFFER REWARDS FOR INFORMATION LEADING TO THE CONVICTION OF THE BOMBERS MR FOX DISPUTED NOTIONS THAT THIS INVESTIGATION WOULD TAKE AS LONG AS SOLVING THE PAN AM 103 BOMBING OVER SCOTLAND IN THE PAN AM CASE THE JET'S DEBRIS WAS SPREAD OVER MILES OF SCOTTISH COUNTRYSIDE WHILE IN THE WORLD TRADE CENTER THE DEBRIS IS CONFINED IN ADDITION MR FOX SAID OUR SKILLS IN SOLVING BOMB CASES ARE IMPROVING ALL THE TIME PAN AM 103 WAS BOMBED IN DECEMBER 1988 IT WAS NOT UNTIL NOVEMBER 1991 NEARLY THREE YEARS LATER THAT TWO LIBYAN INTELLIGENCE AGENTS WERE INDICTED IN FEDERAL COURT IN WASHINGTON THE LIBYAN GOVERNMENT HAS REFUSED TO TURN OVER THE AGENTS FOR TRIAL IN WASHINGTON OFFICIALS ALSO WARNED THAT NO ONE SHOULD EXPECT EARLY RESULTS LOOK AT OUR EXPERIENCE WITH PAN AM 103 IT TOOK A WEEK JUST TO ESTABLISH THAT IT WAS A BOMB IT TOOK YEARS TO FIND OUT WHO REALLY DID IT SAYS CLAYTON MCMANAWAY A FORMER TOP TERRORISM EXPERT IN THE REAGAN AND BUSH ADMINISTRATIONS IT CAN BE EVEN MORE DIFFICULT TO NAIL DOWN THE REASONS BEHIND A TERRORIST ATTACK IF IT IS A TERRORIST ORGANIZATION YOU MAY STILL NOT KNOW THEIR MOTIVATION SAYS MR MCMANAWAY A LOT OF THEM HIRE THEMSELVES OUT TO EARN CASH FOR THEIR CAUSE AND THEY COULD BE WORKING FOR SOMEBODY ELSE THE FACT THAT THIS ATTACK TOOK PLACE INSIDE THE US COULD MAKE THE INVESTIGATION SOMEWHAT EASIER SAY OFFICIALS IF A FOREIGN TERRORIST DID SET THE BOMB THEN THE US CUSTOMS SERVICE WILL LIKELY HAVE ENTRY RECORDS FOR THE CULPRIT WHILE THE NATIONAL SECURITY AGENCY MAY HAVE MONITORED OVERSEAS PHONE CALLS PLACED FROM THE US AND THE FACT THAT INVESTIGATORS DO NOT HAVE TO ASSEMBLE TEMPORARY LABS OVERSEAS COULD MAKE THEIR WORK FASTER AND EASIER FOR NOW CRIMINAL AND INTELLIGENCE EXPERTS ACROSS THE GOVERNMENT ARE WORKING OVERTIME TO GATHER AND SORT THROUGH INTELLIGENCE AS FBI AGENTS SIFT THROUGH CONCRETE RUBBLE THE NATIONAL SECURITY AGENCY'S COMPUTERS ARE REVIEWING MONTHS' WORTH OF EAVESDROPPED PHONE CONVERSATIONS SEARCHING FOR KEY WORDS SUCH AS FINANCIAL DISTRICT WALL STREET OR WORLD TRADE CENTER THE CENTRAL INTELLIGENCE AGENCY'S COUNTERTERRORISM CENTER IS ALSO GOING OVER PAST REPORTS AND GATHERING MORE FROM AGENTS AND INFORMANTS AROUND THE WORLD WE'RE LOOKING BACKWARDS AND FORWARDS FOR ANYTHING THAT MIGHT FIT IN SAYS A US OFFICIAL ANY PUZZLE PIECE THAT WE MIGHT HAVE MISSED BEFORE THAT SUDDENLY MAKES SENSE 9303030097 930303 MARKETING & MEDIA TIME WARNER TCI SWAP CABLE SYSTEMS FOR CONSOLIDATIONS NEW YORK TIME WARNER INC AND TELECOMMUNICATIONS INC THE TWO LARGEST CABLE OPERATORS IN THE COUNTRY AGREED TO SWAP CABLE SYSTEMS IN FIVE STATES TO CONSOLIDATE THEIR HOLDINGS SUCH TRADES ARE EXPECTED TO INCREASE AS LARGER CABLE OPERATORS WITH SCATTERED SYSTEMS PURSUE MARKETING AND OPERATING EFFICIENCIES BY CLUSTERING GROUPS OF CABLE SYSTEMS IN CONTIGUOUS MARKETS AFTER THE TIMETCI TRADES WHICH INVOLVE 45000 SUBSCRIBERS ON EACH SIDE EACH COMPANY WILL OWN CABLE SYSTEMS NEAR OR ADJACENT TO THEIR LARGEST SYSTEMS A TIME WARNER CABLE SPOKESMAN SAID THE TRANSACTIONS WERE STRAIGHT SWAPS AND INVOLVED NO CASH FOLLOWING THE TRANSACTIONS TIME WARNER WILL OWN SYSTEMS IN GERMANTOWN TENN NEAR ITS MEMPHIS SYSTEMS AND IN ROUND ROCK TEXAS NEAR AUSTIN TELECOMMUNICATIONS IN RETURN WILL GET SYSTEMS SERVING SEVERAL DENVER SUBURBS AND TIME WARNER'S 50 STAKE IN THE SYSTEM SERVING COUNCIL BLUFFS IOWA TIME WARNER HAS ALSO AGREED TO SWAP ITS SYSTEM SERVING THE DENVER SUBURB OF LITTLETON FOR TELECOMMUNICATIONS' SYSTEM SERVING TITUSVILLE FLA LAST FALL IN A RELATED MOVE TIME WARNER ANNOUNCED THE SALE OF ITS 425 STAKE IN MILE HI CABLEVISION TO A GROUP OF INVESTORS INCLUDING TELECOMMUNICATIONS LED BY BLACK ENTERTAINMENT TELEVISION FOUNDER ROBERT JOHNSON TELECOMMUNICATIONS BASED IN ENGLEWOOD COLO OWNS CABLE SYSTEMS SERVING MORE THAN NINE MILLION SUBSCRIBERS NATIONWIDE WHILE TIME WARNER CABLE BASED IN NEW YORK SERVES 71 MILLION SUBSCRIBERS NATIONWIDE 9303030096 930303 FINANCING BUSINESS INTEL CORP INTEL CORP SANTA CLARA CALIF SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF FIVEYEAR 1998 STEPUP WARRANTS TO PURCHASE 10 MILLION SHARES OF COMMON STOCK FOR THE FIRST YEAR THE WARRANTS WILL BE EXERCISABLE AT A PRICE OF ABOUT 20 ABOVE THE INTEL STOCK PRICE AT THE TIME OF THE OFFERING EACH YEAR AFTER THAT THE EXERCISE PRICE WILL BE INCREASED AT A COMPOUND RATE OF ABOUT 4 A YEAR INTEL SAID IT EXPECTS TO OFFER THE WARRANTS AT A PRICE OF 30 TO 32 EACH INTEL SAID IT FILED A UNIVERSAL SHELF REGISTRATION OF 3 BILLION TO COVER THE SALE OF THE WARRANTS AND THE 10 MILLION SHARES ISSUABLE UPON EXERCISE OF THE WARRANTS AFTER ISSUING THE WARRANTS INTEL SAID ABOUT 11 BILLION OF THE SHELF REGISTRATION IS EXPECTED TO BE AVAILABLE FOR FUTURE SECURITIES OFFERINGS 9303030095 930303 NEW ZEALAND CUTS KIWI PRICE WELLINGTON NEW ZEALAND THE KIWIFRUIT MARKETING BOARD HERE SAID IS CUTTING BY 32 THE AMOUNT IT PAYS GROWERS FOR THEIR FRUIT THE KIWIFRUIT MARKETING BOARD HERE SAID IT WOULD PAY GROWERS 225 NEW ZEALAND DOLLARS US119 A TRAY FOR THEIR PRODUCE THIS YEAR DOWN FROM THE AVERAGE NZ330 A TRAY PAYOUT MADE TO GROWERS LAST YEAR THE BOARD IS THE SOLE EXPORTER OF NEW ZEALAND KIWI TO MARKETS OUTSIDE OF NEW ZEALAND AND AUSTRALIA THE BOARD SAID THE PROPOSALS CAME AMID ITS POOR CURRENT FINANCIAL STATE AND AN ACKNOWLEDGED LACK OF CAPITAL BECAUSE THE FRUIT IS FETCHING LOW PRICES OVERSEAS KIWI IS A SIGNIFICANT EXPORT COMMODITY FOR NEW ZEALAND'S AGRICULTUREBASED ECONOMY WITH OVERSEAS SALES OF THE CROP EARNING THE COUNTRY NZ461 MILLION US2429 MILLION IN 1992 9303030094 930303 NATIONAL SEMICONDUCTOR LAYOFFS SANTA CLARA CALIF NATIONAL SEMICONDUCTOR CORP SAID IT WILL LAY OFF 230 PEOPLE AT ITS FACILITY IN SOUTH PORTLAND MAINE BECAUSE OF EXPECTED CHANGES AND CUTBACKS IN ITS MILITARY BUSINESS THE PLANT CURRENTLY EMPLOYS ABOUT 1300 NATIONAL SEMICONDUCTOR A MAKER OF COMPUTER CHIPS EMPLOYS ABOUT 26000 PEOPLE WORLDWIDE 9303030093 930303 WHO'S NEWS BACHMAN INFORMATION SYSTEMS INC BACHMAN INFORMATION SYSTEMS INC BURLINGTON MASS BOB HUGHES CHIEF OPERATING OFFICER RESIGNED TO JOIN ANOTHER COMPANY MANAGERS WHO HAD REPORTED TO MR HUGHES WILL NOW REPORT TO ARNOLD KRAFT THE SOFTWARE MAKER'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE COMPANY SAID IT DOESN'T PLAN TO HIRE A SUCCESSOR MR HUGHES SAID HE RESIGNED TO PURSUE A UNIQUE PROFESSIONAL OPPORTUNITY BUT COULDN'T BE REACHED TO ELABORATE A SPOKESWOMAN WOULD SAY ONLY THAT IT WAS A NONCOMPETING COMPANY IN THE INFORMATION SYSTEMS BUSINESS 9303030092 930303 PEPPERAND SALT IN GOVERNMENT A HIGHLY PLACED SOURCE IS THE PERSON WHO STARTED THE RUMOR 9303030091 930303 FAA IBM CORP AGREE ON PLAN TO FIX SOFTWARE FOR AIR TRAFFIC SYSTEM WASHINGTON THE FEDERAL AVIATION ADMINISTRATION AND INTERNATIONAL BUSINESS MACHINES CORP HAVE AGREED ON A PLAN TO FIX SOFTWARE PROBLEMS THAT HAVE STYMIED EFFORTS TO MODERNIZE THE NATION'S AIRTRAFFIC CONTROL SYSTEM IN DECEMBER THE FAA THREATENED TO WITHHOLD PAYMENTS OR EVEN CANCEL ITS 4 BILLION CONTRACT WITH IBM UNLESS THE COMPANY CAME UP WITH AN ACCEPTABLE PLAN FOR WRITING SOFTWARE CODES FOR COMPUTER WORKSTATIONS IN THE AGENCY'S ADVANCED AUTOMATION SYSTEM THE SOFTWARE GLITCHES HAVE THROWN THE PROJECT ALMOST THREE YEARS BEHIND SCHEDULE TO TIGHTEN SUPERVISION THE FAA PROJECT MANAGER WILL REPORT DIRECTLY TO ACTING ADMINISTRATOR JOSEPH DEL BALZO IBM BASED IN ARMONK NY HAS DIRECTED GERALD EBKER CHIEF EXECUTIVE OFFICER OF ITS FEDERAL SYSTEMS DIVISION TO WORK FULLTIME ON GETTING THE TROUBLED PROJECT BACK ON TRACK THE ADVANCED AUTOMATION SYSTEM IS PART OF A 16 BILLION FAA MODERNIZATION PROGRAM IT INVOLVES INSTALLING SOPHISTICATED COMPUTER WORKSTATIONS IN 20 AIRROUTE TRAFFICCONTROL CENTERS NATIONWIDE BEGINNING IN SEATTLE IN APRIL 1995 AS WELL AS MODERNIZING 150 AIRPORT TOWERS 9303030090 930303 HOUSE VOTES BILL PROTECTING INVESTORS IN PARTNERSHIPS WASHINGTON THE HOUSE VOTED 4086 FOR A BILL THAT WOULD GIVE INVESTORS MORE PROTECTION IN THE RESTRUCTURING OF LIMITED PARTNERSHIPS THE LEGISLATION WOULD ALLOW INVESTORS IN LIMITED PARTNERSHIPS TO OPT OUT OF RESTRUCTURINGS KNOWN AS ROLLUPS IN WHICH PARTNERSHIPS WITH A FINITE LIFE ARE COMBINED WITH OTHER PARTNERSHIPS INTO INFINITELIFE INVESTMENTS TRADED ON EXCHANGES SUCH ROLLUPS OFTEN GENERATE SUBSTANTIAL FEES FOR GENERAL PARTNERS AND OTHER SPONSORS OF THE RESTRUCTURING WHILE DEVALUING INVESTORS' STAKES A SIMILAR INVESTORPROTECTION MEASURE WAS APPROVED BY THE HOUSE LAST YEAR BUT STALLED IN THE SENATE AT THE BEHEST OF SEN PHIL GRAMM THE TEXAS REPUBLICAN WILL OPPOSE THE REVIVED LEGISLATION WHEN IT IS DEBATED BY THE SENATE A SPOKESMAN SAID 9303030089 930303 INTERNATIONAL BRIEF ABBEY NATIONAL PLC FIRM POSTS DROP IN EARNINGS PUTS CORNERSTONE UP FOR SALE ABBEY NATIONAL PLC A BRITISH FINANCIAL INSTITUTION POSTED A 9 FALL IN PRETAX EARNINGS FOR 1992 AND SAID IT IS PUTTING ITS CORNERSTONE CHAIN OF REAL ESTATE AGENCIES UP FOR SALE AFTER LOSSES OF 250 MILLION 360 MILLION ON THE VENTURE IN THE PAST SIX YEARS THE DECISION AT A MOMENT WHEN BRITAIN'S HOUSING MARKET SEEMS FINALLY ON THE BRINK OF A MODEST RECOVERY RAISED EYEBROWS IN LONDON FINANCIAL CIRCLES IT COINCIDED WITH NEWS OF A LOSS OF 50 MILLION ON THE BANK'S CONTINENTAL EUROPEAN OPERATIONS IN FRANCE SPAIN AND ITALY WIDENED FROM A LOSS OF 1 MILLION IN 1991 THE BANK SAID THE POOR RESULTS REFLECTED PROVISIONS FOR LOSSES ON PROPERTY LENDING IN SPAIN AND FRANCE WHERE DEFAULTS HAVE INCREASED AS A RESULT OF AN ECONOMIC SLOWDOWN ABBEY'S PRETAX EARNINGS OF 564 MILLION DOWN FROM 618 MILLION IN 1991 WERE IN LINE WITH ANALYSTS' EXPECTATIONS 9303030088 930303 TECHNOLOGY & HEALTH FDA CLEARS CHEMTRAK CHOLESTEROL KIT THE FIRST TEST TO BE USED IN THE HOME BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PEOPLE WORRIED ABOUT HEART DISEASE SOON WILL BE ABLE TO TELL IF THEIR CHOLESTEROL LEVELS ARE TOO HIGH WITHOUT LEAVING HOME THE FOOD AND DRUG ADMINISTRATION APPROVED THE FIRST HOMETEST KIT FOR CHOLESTEROL YESTERDAY DESIGNED TO PRODUCE RESULTS IN ABOUT 15 MINUTES THE KIT IS AS ACCURATE AS TESTS USED BY DOCTORS AND MEDICAL LABORATORIES ACCORDING TO THE AGENCY THE KIT IS MADE BY CHEMTRAK INC SUNNYVALE CALIF AND WILL BE MARKETED UNDER THE NAME CHOLESTRAC BY WHITEHALL LABORATORIES THE CONSUMER PRODUCTS DIVISION OF AMERICAN HOME PRODUCTS CORP CHEMTRAK SAID THE HOMETEST KITS THAT IT SELLS OVERSEAS GENERALLY COST BETWEEN 10 AND 20 AMERICAN HOME SAID IT HASN'T YET DECIDED WHAT TO CHARGE FOR THE KITS WHICH IT PLANS TO BEGIN DISTRIBUTING AROUND THE MIDDLE OF THE YEAR AFTER THE ANNOUNCEMENT OF THE APPROVAL YESTERDAY CHEMTRAK'S SHARES SOARED 525 TO CLOSE AT 1225 IN NATIONAL OVERTHECOUNTER TRADING AMERICAN HOME'S SHARES ROSE 625 CENTS TO 61625 IN LATE NEW YORK STOCK EXCHANGE TRADING THIS TEST CAN HELP GIVE CONSUMERS GREATER OPPORTUNITY TO MONITOR THEIR HEALTH AND TAKE STEPS TO PREVENT DISEASE SAID HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA MAKING IT MORE CONVENIENT TO CHECK ON CHOLESTEROL CAN HELP ENSURE THAT PEOPLE ARE AWARE OF THE LEVEL SO THEY CAN SEE A DOCTOR BEFORE SERIOUS PROBLEMS DEVELOP HIGH CHOLESTEROL IS ONE OF A NUMBER OF FACTORS LEADING TO HEART DIEASE OTHERS INCLUDE HIGH BLOOD PRESSURE SMOKING OBESITY AND A FAMILY HISTORY OF THE AILMENT BEFORE AGE 55 ABOUT 176 MILLION AMERICANS HAVE HEART DISEASE WHICH KILLS SOME 734000 PEOPLE A YEAR IN THE US TO PERFORM THE TEST THE USER PRICKS A FINGER SQUEEZES BLOOD INTO A PLASTIC CONTAINER THAT HOLDS A TEST STRIP AND THEN WAITS AS LONG AS 15 MINUTES FOR RESULTS THE STRIP CHANGES COLOR DEPENDING ON HOW MUCH CHOLESTEROL IS PRESENT THE USER COMPARES THE STRIP TO AN ACCOMPANYING CONVERSION CHART TO GET A CHOLESTEROL READING THE TEST DOESN'T DIFFERENTIATE BETWEEN DIFFERENT TYPES OF CHOLESTEROL A READING OF LESS THAN 200 IS DESIRABLE 200 TO 239 IS BORDERLINE HIGH AND 240 AND ABOVE IS HIGH MEANING THE USER MAY BE AT A GREATER RISK FOR HEART DISEASE THE FDA SAID THE AGENCY RECOMMENDS THAT PEOPLE WHO TEST BORDERLINE OR HIGH SEE THEIR DOCTORS THE NATIONAL INSTITUTES OF HEALTH'S NATIONAL CHOLESTEROL EDUCATION PROGRAM RECOMMENDS THAT PEOPLE WITH A DESIRABLE READING CHECK THEIR CHOLESTEROL EVERY FIVE YEARS OTHERS SHOULD BE TESTED MORE FREQUENTLY THEIR DOCTORS ADVISE BECAUSE OF THE POSSIBILITY OF EXCESSIVE BLEEDING THE HOME TEST SHOULDN'T BE USED BY HEMOPHILIACS OR PEOPLE WHO TAKE BLOODTHINNING MEDICINE THE AGENCY SAID SEPARATELY THE FDA APPROVED AN INTRAVENOUS DRUG FOR TREATING HAIRYCELL LEUKEMIA A RARE AND OFTEN FATAL CANCER OF THE BLOOD AND BONE MARROW THE DRUG CLADRIBINE WILL BE MARKETED BY ORTHO BIOTECH INC A UNIT OF JOHNSON & JOHNSON UNDER THE TRADE NAME OF LEUSTATIN IN CLINICAL TRIALS 89 OF THE PEOPLE TREATED ONCE WITH LEUSTATIN EXPERIENCED COMPLETE OR PARTIAL REMISSION FOR EIGHT TO 25 MONTHS PATIENTS GET THE DRUG IN A SINGLE CONTINUOUS TREATMENT OVER SEVEN DAYS RATHER THAN IN SEPARATE TREATMENTS OVER MONTHS AS IS REQUIRED WITH OTHER CANCER DRUGS THE FDA SAID PATIENTS MAY ESCAPE SOME SIDE EFFECTS SUCH AS NAUSEA VOMITING HEADACHES AND RASHES FREQUENTLY ASSOCIATED WITH MULTIPLE TREATMENTS THE MOST SERIOUS SIDE EFFECTS FROM THE DRUG INCLUDE FEVER AND A LOW WHITE BLOODCELL COUNT IN THE FIRST TWO MONTHS AFTER TREATMENT HAIRYCELL LEUKEMIA IS NAMED FOR THE HAIRY APPEARANCE OF THE CANCER CELLS UNDER A MICROSCOPE THE DISEASE CURRENTLY AFFECTS ABOUT 3000 PATIENTS MOSTLY MEN ABOUT 600 NEW CASES OCCUR EACH YEAR 9303030087 930303 LAW CLARK CLIFFORD FOUND TO BE TOO ILL TO STAND TRIAL NOW NEW YORK A JUDGE GRANTED A MOTION TO POSTPONE CRIMINAL PROCEEDINGS AGAINST CLARK CLIFFORD FOR BRIBERY AND FRAUD CHARGES STEMMING FROM HIS WORK FOR BCCI HOLDINGS LUXEMBOURG SA NEW YORK STATE JUDGE JOHN AK BRADLEY RULED THAT THE 86YEAROLD MR CLIFFORD FORMER CHAIRMAN OF BCCICONTROLLED FIRST AMERICAN BANKSHARES INC IS TOO ILL TO STAND TRIAL AT THIS TIME CHARLES A STILLMAN A PARTNER WITH STILLMAN FRIEDMAN & SHAW IN NEW YORK WHICH REPRESENTS MR CLIFFORD SAID HIS CLIENT IS EXPECTED TO UNDERGO OPENHEART SURGERY AND HOPES TO BE HEALTHY ENOUGH TO RETURN TO COURT BY OCT 4 WHEN THE JUDGE AGAIN WILL REVIEW MR CLIFFORD'S FITNESS TO STAND TRIAL THE RULING MEANS THAT MR CLIFFORD'S CODEFENDANT AND PROTEGE ROBERT ALTMAN FORMER PRESIDENT OF FIRST AMERICAN WILL STAND TRIAL IN A SEPARATE PROCEEDING SCHEDULED TO BEGIN MARCH 15 IN NEW YORK GUSTAVE NEWMAN A PARTNER WITH NEWMAN & SCHWARTZ WHICH REPRESENTS MR ALTMAN DECLINED TO COMMENT MR CLIFFORD A FORMER US DEFENSE SECRETARY AND ADVISER TO FIVE PRESIDENTS FACES BOTH STATE AND FEDERAL INDICTMENTS ACCUSING HIM OF HELPING BCCI ILLEGALLY CONTROL FIRST AMERICAN A WASHINGTON BANK WITH OFFICES IN NEW YORK MR CLIFFORD AND MR ALTMAN MAINTAIN THAT THEY DIDN'T KNOW THAT BCCI OR BANK OF CREDIT & COMMERCE INTERNATIONAL CONTROLLED FIRST AMERICAN 9303030086 930303 BUSINESS BRIEF ALLTEL CORP EARLY RETIREMENT OFFERED TO 320 WORKERS IN REVAMP ALLTEL CORP SAID IT IS OFFERING AN EARLY RETIREMENT PLAN TO 320 EMPLOYEES AS PART OF A RESTRUCTURING PROGRAM THE LITTLE ROCK ARK TELECOMMUNICATIONS COMPANY SAID THE OFFER TO WORKERS WITHIN ITS TELEPHONE OPERATIONS IS PART OF A BROAD REVAMPING TIED TO A PREVIOUSLY ANNOUNCED SWAP OF TELEPHONE LINES WITH GTE CORP AS PART OF THAT DEAL ALLTEL SAID IT WILL PULL OUT OF THREE STATES AND CONSOLIDATE TWO REGIONAL OFFICES ALLTEL LAST MONTH ANNOUNCED PLANS TO CLOSE ITS JAMESTOWN NY REGIONAL HEADQUARTERS AND ELIMINATE ABOUT 220 JOBS BUT THE COMPANY SAID THE MOVE WAS UNRELATED TO THE GTE TRANSACTION THE COMPANY SAID CHARGES RELATING TO THE EARLYRETIREMENT PROGRAM WILL BE MORE THAN OFFSET IN 1993 BY A GAIN RELATING TO TELEPHONE PROPERTIES IT IS TRADING WITH GTE AS PART OF THE TWO COMPANIES' AGREEMENT UNDER TERMS OF THE DEAL ALLTEL WILL PAY GTE 440 MILLION AND SWAP 95000 TELEPHONE LINES IN ILLINOIS INDIANA AND MICHIGAN FOR GTE'S GEORGIA TELEPHONE OPERATIONS 9303030085 930303 MARKETING & MEDIA NBC NEWS SEEKS SUCCESSOR TO GARTNER WHO QUIT AS PRESIDENT DUE TO GM FIASCO BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC'S BELEAGUERED NEWS DIVISION BEGAN THE SEARCH FOR A SUCCESSOR TO MICHAEL GARTNER IN THE WAKE OF HIS RESIGNATION AS NEWS PRESIDENT YESTERDAY PUTTING OUT THE WORD THAT IT SEEKS A TELEVISIONSAVVY SENIOR EXECUTIVE WITH A REPUTATION FOR INTEGRITY MR GARTNER WHO IS FORMALLY LEAVING AUG 1 BUT WILL NO LONGER RUN THE DIVISION DAY TO DAY IS A CASUALTY OF WANING INTERNAL SUPPORT FOLLOWING LAST MONTH'S DEBACLE OVER THE STAGED CRASH OF A GENERAL MOTORS CORP PICKUP TRUCK IN NBC'S DATELINE PROGRAM ANNOUNCING HIS RESIGNATION IN A MEMO TO HIS STAFF HE CITED A DESIRE TO HELP MINIMIZE THE ENERGY AND ATTENTION BEING CONSUMED BY THE INCIDENT MR GARTNER HAD BECOME SUCH A LIGHTNING ROD FOR ALL KINDS OF CRITICISMS SAID NBC PRESIDENT ROBERT WRIGHT THAT IT WAS AFFECTING HIS ABILITY TO DO THE JOB MR WRIGHT SAID THAT WHILE MR GARTNER DID NOT WANT TO QUIT AND WOULD NOT HAVE DONE SO HAD THE ATTENTION DIED DOWN HE WAS NOT FIRED AS SOME EXECUTIVES WERE SAYING PRIVATELY YESTERDAY NBC IS A UNIT OF GENERAL ELECTRIC CO MR GARTNER'S EARLY EXIT HAS KINDLED ALL KINDS OF SPECULATION IN THE NEWS DIVISION ABOUT WHO WILL SUCCEED HIM MR WRIGHT SAID IT IS IMPORTANT THAT THE CANDIDATE BE ABLE TO FOCUS ON PROGRAMMING NOW THAT THE BUDGET HAS BEEN BROUGHT UNDER CONTROL INSIDERS MANY CONSIDERED LIKELY CANDIDATES NBC SPORTS PRESIDENT DICK EBERSOL AND NBC WASHINGTON BUREAU CHIEF TIM RUSSERT HAVE ALREADY SAID THEY DON'T WANT THE JOB AND NIGHTLY NEWS ANCHOR TOM BROKAW IS BELIEVED NOT TO WANT THE JOB I ALREADY HAVE THE BEST JOB IN TELEVISION MR RUSSERT SAID HE TOLD MR WRIGHT MR RUSSERT HAS REALIZED NEWFOUND STARDOM AS THE ANCHOR OF THE SUNDAY NEWS SHOW MEET THE PRESS THAT LEAVES TWO OTHER KEY INSIDERS AS POSSIBLE NAMES ON A SHORT LIST MR GARTNER'S NO 2 EXECUTIVE VICE PRESIDENT DON BROWNE WHO WILL IMMEDIATELY ASSUME DAILY OVERSIGHT OF THE NEWS DIVISION AND BOB HORNER PRESIDENT OF THE NBC NEWS CHANNEL A 24HOUR NEWS SERVICE FOR NBC AFFILIATES THAT WAS LAUNCHED DURING MR GARTNER'S TENURE MR BROWNE TOLD STAFFERS YESTERDAY HE'S A CANDIDATE TO SUCCEED MR GARTNER BUT HE MAY BE HINDERED BY THE FACT THAT HE IS CLOSELY ALLIED WITH THE DEPARTING NEWS PRESIDENT THE SEARCH FOR EXTERNAL CANDIDATES IS ONLY BEGINNING TO GEAR UP AND THERE ISN'T A SERIOUS LIST AS YET ONE NEWS EXECUTIVE SAID BUT WHOEVER GETS THE JOB WILL HAVE THE DIFFICULT TASK OF RESTORING MORALE AT THE DIVISION BATTERED BY SEVERAL YEARS OF COSTCUTTING AS WELL AS BY THE RECENT DATELINE SCANDAL ANOTHER CHARACTERISTIC THAT NBC IS LIKELY TO SEEK IN A NEWS PRESIDENT IS THE ABILITY TO GET ALONG WITH NBC'S AFFILIATE STATION MANAGERS WHO HAD A ROCKY RELATIONSHIP WITH MR GARTNER MR GARTNER RETAINS HIS TITLE UNTIL AUGUST HIS FIFTH ANNIVERSARY IN THE POST TO HELP WITH THE TRANSITION AND ALSO TO PROTECT HIS PENSION RIGHTS AT NBC MR GARTNER TOOK THE DIVISION FROM AN ANNUAL LOSS OF 126 MILLION FIVE YEARS AGO TO A FORECAST PROFIT OF ABOUT 20 MILLION IN 1993 WHILE INCREASING THE AMOUNT OF PROGRAMMING FROM 19 HOURS WEEKLY TO 72 INCLUDING 47 HOURS OF OVERNIGHT NEWSCASTS NBC NEWS IS ALSO ABOUT TO LAUNCH A SPANISHLANGUAGE NEWS CHANNEL FOR LATIN AMERICA MR GARTNER 54 YEARS OLD HAD MADE IT KNOWN BEGINNING LAST YEAR THAT HE INTENDED TO LEAVE THE NETWORK SOMETIME AFTER AUG 1 TO RETURN TO HIS HOME STATE OF IOWA WHERE HIS FAMILY HAS REMAINED BUT THE DATELINE INCIDENT BROUGHT PRESSURE ON HIM TO LEAVE WITH A NUMBER OF NATIONAL PUBLICATIONS CALLING FOR HIS OUSTER DESPITE THE FACT THAT HE APPARENTLY HAD NO PRIOR KNOWLEDGE OF THE STAGING SEVERAL EXECUTIVES WHO WOULDN'T SPEAK FOR THE RECORD INSISTED YESTERDAY THAT MR GARTNER WAS FORCED TO RESIGN BUT AN INTERNAL TALKING POINTS DOCUMENT DISTRIBUTED TO NBC EMPLOYEES YESTERDAY FOR THEIR USE IN ANSWERING REPORTERS' QUESTIONS REITERATED THAT MR GARTNER INITIATED THE RESIGNATION ON HIS OWN 9303030084 930303 THEY OBJECT TO HIS INTRODUCING CONSPICUOUS CONSUMPTION THERE BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF YOU KNOW WHAT THEY SAY ONE BRITISH MULTIMILLIONAIRE MOVES IN AND THERE GOES THE NEIGHBORHOOD OF COURSE THERE'S ALSO THE FACT THAT ROBERT MANOUKIAN LONDON BUSINESSMAN AND CONFIDANT OF THE SULTAN OF BRUNEI WANTS TO BRING ALONG HIS EXTENDED FAMILY AND A SIZABLE HOUSEHOLD STAFF SO HE PROPOSED BUILDING A GARGANTUAN 41000SQUAREFOOT HOUSE FOR HIS ENTOURAGE NEIGHBORS IN THE NORTHWEST CORNER OF THIS TOWN WHERE THE MEGAMANSION IS TO BE BUILT ARE IN A TIZZY IN A PLACE WHERE TOO MUCH IS SELDOM ENOUGH THEY SAY THE MANOUKIAN HOUSE EVEN THOUGH PUNY COMPARED WITH THE NEARBY 56000SQUAREFOOT DWELLING OF TELEVISION PRODUCER AARON SPELLING IS JUST TOO BIG MR SPELLING AND ALEXANDER COLER A SOUTHERN CALIFORNIA BUILDER AND DEVELOPER BOTH ALSO DREW PROTESTS WHILE PLANNING AND CONSTRUCTING THEIR HUGE HOMES IN THE AREA SOMEBODY SHOULD NOT BE ABLE TO COME DOWN THE PIKE WITH 12 BROTHERS THE ACTUAL SIZE OF THE FAMILY HASN'T BEEN DISCLOSED AND SAY THEY'VE ALL GOT WIVES AND WE ALL WANT TO LIVE HERE SAYS SID SHEINBERG PRESIDENT OF THE MCA INC UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO MR SHEINBERG ACTOR JACK LEMMON AND LOCAL DEVELOPER STUART KETCHUM HAVE FORMED CITIZENS FOR THE PRESERVATION OF BEVERLY HILLS WITH A SIMPLE GOAL PERSUADING THE BEVERLY HILLS PLANNING COMMISSION TO SCUTTLE THE MANOUKIAN CLAN'S PLANS A VOTE IS SCHEDULED FOR THIS AFTERNOON THE NEIGHBORHOOD GROUP SAYS CONSTRUCTION NOISE AND RELATED TRAFFIC WILL BE DISRUPTIVE AND THAT THE MANSION ISN'T A SINGLEFAMILY HOUSE IT'S A DAMN HOTEL IS WHAT IT IS MR LEMMON FUMES FACED WITH THE PROTEST MR MANOUKIAN DECIDED TO SCALE BACK HIS LAWYER MURRAY FISCHER SAYS HE NOW WANTS A MORE MODEST 27126SQUAREFOOT HOUSE MR FISCHER SMELLS SNOBBERY AND XENOPHOBIA IF IT WERE BARBRA STREISAND OR FRANK SINATRA NONE OF THIS WOULD BE HAPPENING HE ASSERTS MR SHEINBERG DENIES THAT THIS IS NOT AN ANTIFOREIGNER ISSUE HE SAYS I DID ONCE SUGGEST TO THE PLANNING COMMISSION THAT WHAT WAS BEING BUILT WAS AN INSANE ASYLUM BECAUSE ANYBODY WHO'D BUILD A HOUSE LIKE THAT MUST BE CRAZY THE MOVIEINDUSTRY EXECUTIVE SAYS HE NOW REGRETS THAT REMARK THEN AFTER A PAUSE HE ADDS BUT I STILL THINK IT WAS FUNNY 9303030083 930303 BUSINESS BRIEF ENCOR INC BORROWING BASE DEFICIENCY BELIEVED TO BE ELIMINATED ENCOR INC SAID IT BELIEVES IT HAS ELIMINATED ITS BORROWING BASE DEFICIENCY BY SELLING ASSETS THE DEFICIENCY WHICH IS THE DIFFERENCE BETWEEN THE VALUE OF ENCOR'S PROVEN CANADIAN OIL AND GAS RESERVES AND ITS OUTSTANDING PRODUCTION LOANS WAS 99 MILLION CANADIAN DOLLARS US793 MILLION AT SEPT 30 ENCOR CALGARY ALBERTA SAID ITS BANK LENDERS WILL REVIEW THE COMPANY'S DEC 31 REPORT ON ITS RESERVES TO CONFIRM WHETHER THE DEFICIENCY HAS BEEN ELIMINATED IN THE MEANTIME THE BANKS HAVE EXTENDED THE COMPANY'S WAIVER PERIOD FOR CORRECTING THE DEFICIENCY UNTIL APRIL 30 FROM FEB 28 DURING THIS PERIOD ENCOR SAID IT ALSO PLANS TO NEGOTIATE AMENDMENTS TO ITS LOAN AGREEMENT INCLUDING A NET WORTH COVENANT ENCOR SAID IT RAISED C1437 MILLION FROM RECENT ASSET SALES THE COMPANY SAID IT HAD LONGTERM BANK DEBT AT DEC 31 OF C128 MILLION DOWN FROM C375 MILLION AT THE END OF 1991 ENCOR ALSO HAS C169 MILLION IN LONGTERM SUBORDINATED DEBT 9303030082 930303 PENNSYLVANIA FUND TALKS WITH COMPANIES ABOUT PERFORMANCE THE PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM SAID IT IS IN DISCUSSIONS WITH SEVERAL COMPANIES IN WHICH IT HOLDS SHARES IN AN EFFORT TO IMPROVE THEIR FINANCIAL PERFORMANCE THE PUBLIC PENSION FUND WHICH OVERSEES 22 BILLION IN RETIREMENT MONEY OF PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES SAID IT IS IN TALKS WITH EASTMAN KODAK CO AMERICAN EXPRESS CO AND FEDERAL EXPRESS CORP THE PENSION FUND ALSO HAS ASKED TO MEET WITH EXECUTIVES OF CITICORP AND TANDY CORP BUT SAID THOSE COMPANIES HAVEN'T YET AGREED TO MEETINGS A SPOKESMAN FOR THE PENNSYLVANIAN FUND SAID IT ISN'T MAKING SPECIFIC REQUESTS OF THE COMPANIES RATHER HE SAID THE FUND WANTS TO EXPRESS CONCERNS AND TO SEE IF EACH COMPANY CAN GIVE US AN INDICATION OF ITS STRATEGY IN THE FUTURE THIS IS THE FIRST YEAR THE PENSION FUND HAS PUT TOGETHER A LIST OF COMPANIES TO TARGET THE PRACTICE WHICH IS SPREADING AMONG PUBLIC FUNDS WAS PIONEERED BY CALIFORNIA'S 73 BILLION PUBLIC FUND 9303030081 930303 BUSINESS BRIEF BERJAYA GROUP BHD MALAYSIAN COMPANY WINS CONTRACT FOR CHINA LOTTERY BERJAYA GROUP BHD OF MALAYSIA WON EXCLUSIVE RIGHTS TO START UP AND MANAGE A COMPUTERIZED LOTTERY IN CANTON THE CAPITAL OF CHINA'S GUANGDONG PROVINCE THE MALAYSIAN CONGLOMERATE SAID THE MANAGEMENT CONTRACT RUNS FOR AN INITIAL TERM OF EIGHT YEARS BERJAYA RECENTLY INCORPORATED A LOTTERYMANAGEMENT SUBSIDIARY IN HONG KONG IN ANTICIPATION OF OVERSEEING THIS AND OTHER PROJECTS IN RETURN FOR SPENDING 16 MILLION ON COMPUTER LINKUPS AND OTHER SUPPORT FACILITIES BERJAYA'S HONG KONG SUBSIDIARY WILL RECEIVE A MANAGEMENT FEE OF 63 OF THE LOTTERY'S TOTAL ANNUAL SALES BERJAYA EXPECTS AN AVERAGE ANNUAL PRETAX PROFIT OF 38 MILLION MALAYSIAN DOLLARS US144 MILLION BERJAYA MAY HAVE CURRIED ADDITIONAL FAVOR FROM THE CHINESE AUTHORITIES BY PLEDGING TO INVEST US100 MILLION IN AN ASSORTMENT OF PROJECTS BERJAYA SAID IT IS NEGOTIATING SIX JOINT VENTURES IN CHINA RANGING FROM A HOTEL AND DEPARTMENT STORE TO AMUSEMENT PARKS AND OTHER LOTTERY MANAGEMENT CONTRACTS 9303030080 930303 TECHNOLOGY & HEALTH CELLULARPHONE ALLEGATION PROMPTS SHIELD DEVICE DALLAS A SEATTLE ENTREPRENEUR IS SELLING A DEVICE DESIGNED TO SHIELD A CELLULAR TELEPHONE USER AGAINST ALLEGEDLY HARMFUL RADIO EMISSIONS BUT INDUSTRY EXECUTIVES CALLED IT UNNECESSARY THE CELLULAR INDUSTRY HAS BEEN WRESTLING WITH CONCERNS OVER PHONE SAFETY SINCE A FLORIDA MAN CLAIMED IN A LAWSUIT THAT THE CELLULAR PHONE HIS WIFE USED CAUSED OR EXACERBATED HER BRAIN CANCER THE SHIELDING DEVICE CALLED CELLGUARD IS MADE OF PLASTIC LINED WITH A METAL ALLOY IT SLIPS OVER ANY CELLULAR PHONE'S ANTENNA AND EARPIECE AND WILL DIRECT A PHONE'S RADIO FREQUENCY EMISSIONS AWAY FROM THE USER'S HEAD ACCORDING TO GREG GRATIAS OF QUANTUM LABORATORIES A SEATTLE MEDICAL TESTING COMPANY THAT IS SELLING THE DEVICE FOR 4995 THE MAN BELIEVES PT BARNUM WAS RIGHT SAID THOMAS WHEELER PRESIDENT OF THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION WHICH IS HOLDING ITS ANNUAL CONFERENCE HERE HE SAID THAT CELLULAR PHONES ARE DESIGNED TO INCREASE OR DECREASE THEIR POWER OUTPUT ACCORDING TO THEIR PROXIMITY TO A CELLULAR NETWORK TRANSMITTER THIS CELLGUARD GIMMICK THWARTS THAT SYSTEM BY MAKING IT HARDER FOR THE PHONE TO TRANSMIT AND THUS MAKING IT BOOST TO FULL POWER ALL THE TIME MR GRATIAS CONCEDED THE PHONE'S PERFORMANCE IS AFFECTED BUT HE SAID THE COMPANY'S GOAL WAS TO MINIMIZE EXPOSURE FOR USERS 9303030079 930303 BUSINESS BRIEF FMC CORP TENTATIVE PACT SET TO BUY SIEMENS'S KONGSBERG UNIT FMC CORP SAID IT TENTATIVELY AGREED TO ACQUIRE SIEMENS AG'S KONGSBERG OFFSHORE UNIT THE CHICAGO CHEMICALS AND MACHINERY CONCERN DIDN'T DISCLOSE TERMS OF THE LETTER OF INTENT THAT ITS FMC NORWAY UNIT SIGNED WITH THE GERMAN CONCERN KONGSBERG WHICH SIEMENS ACQUIRED IN 1987 MAKES ELECTRONIC CONTROLS AND DOES ENGINEERING AND CONSTRUCTION WORK FOR SUBSURFACE OILEXTRACTION OPERATIONS ITS SALES CENTER ON OIL COMPANIES WORKING THE NORTH SEA FIELDS KONGSBERG IS EXPECTED TO HAVE 1993 SALES OF 100 MILLION FMC SAID BUT THE COMPANY NOTED THAT SALES VARY SUBSTANTIALLY FROM YEAR TO YEAR DEPENDING ON PROJECT CONTRACTS THE TRANSACTION IS SUBJECT TO NORWEGIAN GOVERNMENT APPROVAL AND SIGNING OF A DEFINITIVE PACT COMPLETION IS EXPECTED BY THE END OF THE SECOND QUARTER 9303030078 930303 WHO'S NEWS ITT CORP ITT CORP NEW YORK MICHAEL CRYAN 40 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ITT'S BOSTONBASED LODGING SUBSIDIARY ITT SHERATON CORP MR CRYAN WAS PREVIOUSLY VICE PRESIDENT AND DIRECTOR OF ACQUISITIONS AND OWNER RELATIONS ITT SHERATON ALSO NAMED TWO OTHER EXECUTIVE VICE PRESIDENTS ROBERT F COTTER 41 WHO CONTINUES AS DIRECTOR OF MARKETING AND PRODUCT MANAGEMENT AND JAMES P SMITH 50 WHO REMAINS DIRECTOR OF ADMINISTRATION 9303030077 930303 UMW ENDS STRIKE AGAINST COAL MINES AGREES TO 60DAY EXTENSION OF CONTRACT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED MINE WORKERS UNION ENDED ITS MONTHLONG STRIKE JUST ONE DAY AFTER EXPANDING IT BEYOND PEABODY HOLDING CO TO FIVE MORE BIG COAL PRODUCERS THE UMW AND THE BITUMINOUS COAL OPERATORS ASSOCIATION AGREED TO A 60DAY EXTENSION OF THEIR LABOR AGREEMENT WHICH EXPIRED FEB 1 NEITHER SIDE WOULD COMMENT ON SPECIFICS OF THE EXTENSION AGREEMENT WHICH EXPIRES MAY 3 BUT THE BCOA IS UNDERSTOOD TO HAVE AGREED TO TWO MAJOR UMW DEMANDS IT WILL GIVE THE UMW INFORMATION ON THE OWNERSHIP OF NONUNION MINES THE UMW WANTS THE INFORMATION BECAUSE IT BELIEVES PARENT COMPANIES OF BCOA MEMBERS EFFECTIVELY CIRCUMVENT THE LABOR CONTRACT BY SETTING UP NONUNION SUBSIDIARIES IN ADDITION THE BCOA NOW CAN DISCUSS JOB OPPORTUNITIES FOR UMW MEMBERS AT THOSE NONUNION MINES WHEREAS IN THE PAST ONLY ASSOCIATION MEMBERS COULD ENGAGE IN THOSE DISCUSSIONS THE FEDERAL MEDIATION AND CONCILIATION SERVICE IS SAID TO HAVE PLAYED A MAJOR ROLE IN GETTING THE UMW AND THE BCOA TO AGREE TO AN EXTENSION A SPOKESMAN FOR THE AGENCY WOULDN'T ELABORATE THE UNION WENT ON STRIKE AGAINST TWO UNITS OF ST LOUISBASED PEABODY FEB 2 AFTER THE NATIONAL BITUMINOUS WAGE AGREEMENT EXPIRED ON MONDAY THE UMW EXPANDED THE STRIKE TARGETING SOME OF THE LOWEST COST AND HIGHEST PRODUCTIVITY MINES OWNED BY THE FOLLOWING COMPANIES CONSOL ENERGY INC WHICH IS OWNED BY DU PONT CO AND RHEINBRAUN AG ARCH MINERAL CORP OWNED BY ASHLAND OIL INC AND THE HUNT FAMILY OF TEXAS ROCHESTER & PITTSBURGH COAL CO ZIEGLER COAL HOLDING CO AND FREEMAN ENERGY CORP A UNIT OF GENERAL DYNAMICS CORP THE STRIKE INVOLVED AT LEAST 6700 WORKERS UNDER THE CONTRACT EXTENSION THE MINERS WILL RETURN TO WORK TOMORROW BUT THE NEW AGREEMENT IS A FAR CRY AWAY FROM SAYING THAT WE'RE DONE OR THE WORST IS OVER SAID RAFAEL VILLAGRAN AN ANALYST WITH SHEARSON LEHMAN BROTHERS INDEED THE UMW AND THE BCOA HADN'T EVEN BEGUN NEGOTIATING BEFORE THE NATIONAL BITUMINOUS WAGE AGREEMENT EXPIRED FEB 1 AND NOW FACE TOUGH ISSUES INCLUDING UMW RIGHTS IN NONUNION MINES MR VILLAGRAN SAID THE BCOA MIGHT AGREE TO HIRE UMW MEMBERS IN NONUNION MINES USING A SPECIFIC RATIO BUT OTHER INDUSTRY OBSERVERS SAY BCOA MEMBERS WON'T BUDGE NONUNION MINES PRODUCE COAL FOR 3 A TON LESS THAN UNION MINES ACCORDING TO RESOURCE DATA INTERNATIONAL A DENVER ENERGY CONSULTING FIRM HEALTH CARE ALSO IS LIKELY TO BE A MAJOR ISSUE BCOA COMPANIES ARE SAID TO WANT UMW MEMBERS TO SHARE HEALTHCARE COSTS WHICH THE UNION MAY FIGHT 9303030076 930303 INTERNATIONAL BRIEF FISONS PLC PRETAX PROFIT FELL 24 IN '92 WHILE SALES EDGED UP 36 BRITISH DRUG MAKER FISONS PLC REPORTED A 24 DECLINE IN PRETAX PROFIT FOR 1992 BUT FISONS CITED ENCOURAGING SIGNS OF IMPROVEMENT DURING LAST YEAR'S SECOND HALF AND PREDICTED THAT A BUDDING TURNAROUND WOULD GAIN MOMENTUM ALBEIT SLOWLY THIS YEAR THE COMPANY HAS BEEN UNDERGOING AN 18MONTH OVERHAUL FISON'S DIRECTORS SAID THEY WOULD LEAVE THE ANNUAL DIVIDEND PAYOUT AT 87 PENCE 125 CENTS A SHARE STILL IN HEAVY LONDON TRADING YESTERDAY THE COMPANY'S SHARES FELL SEVEN PENCE CLOSING AT 222 PENCE FISONS SAID PRETAX PROFIT SKIDDED TO 1236 MILLION LAST YEAR FROM 1626 A YEAR EARLIER SALES EDGED UP 36 TO 128 BILLION FROM 124 BILLION OPERATING PROFIT AT THE FLAGSHIP PHARMACEUTICAL DIVISION TUMBLED 38 TO 71 MILLION ON A 4 RISE IN SALES TO 427 MILLION 9303030075 930303 CFTC TO PROPOSE RULES THAT PROHIBIT SOME DUAL TRADING BY SANDRA BLOCK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION VOTED TO PROPOSE RULES THAT WOULD PROHIBIT DUAL TRADING IN MOST LARGE FUTURES CONTRACTS THE DUALTRADING BAN WOULD APPLY TO ALL FUTURES OR OPTIONS WITH DAILY VOLUME OF AT LEAST 8000 CONTRACTS UNLESS THE FUTURES EXCHANGES WHERE THE CONTRACTS ARE LISTED MEET TOUGH NEW STANDARDS FOR MONITORING FUTURES TRADES CONGRESS INCLUDED THE PROHIBITION ON DUAL TRADING WHICH OCCURS WHEN COMMODITIES FLOOR BROKERS TRADE FOR THEIR OWN ACCOUNTS AT THE SAME TIME THEY FILL ORDERS FOR CUSTOMERS IN A FUTURESTRADING BILL THAT WAS SIGNED INTO LAW LAST YEAR THE PRACTICE CAME UNDER FIRE AFTER THE 1989 FEDERAL STING OPERATION OF FRAUD AT THE CHICAGO FUTURES EXCHANGES CFTC OFFICIALS SAID ABOUT 25 CONTRACTS ON FIVE EXCHANGES COULD BE AFFECTED BY THE DUALTRADING BAN THE PROPOSED RULES CONTAIN SEVERAL EXEMPTIONS FROM THE BAN FOR CERTAIN TYPES OF TRANSACTIONS AND LOWVOLUME MONTHS THE PROPOSED RULES WILL BE PUBLISHED FOR A 60DAY COMMENT PERIOD AND IF APPROVED BY THE CFTC TAKE EFFECT IN OCTOBER IN CHICAGO HOME OF THE WORLD'S TWO BIGGEST FUTURES EXCHANGES THE CHICAGO MERCANTILE EXCHANGE VOLUNTARILY RESTRICTS DUAL TRADING WHILE THE CHICAGO BOARD OF TRADE DOESN'T THE MEMBERS OF THE CHICAGO MERCANTILE EXCHANGE VOTED THREE YEARS AGO TO RESTRICT DUAL TRADING AND THE CFTC'S PROPOSED RESTRICTIONS WILL NOT AFFECT THAT DECISION SAID MERC CHAIRMAN JOHN SANDNER A SPOKESMAN FOR THE BOARD OF TRADE SAID THE CFTC'S NEW PROPOSALS FOR DUAL TRADING ARE RIGHT IN LINE WITH THE LEGISLATION AND WE ARE IN AGREEMENT WITH IT THE SPOKESMAN SAID THE CONTINUING DEVELOPMENT OF COMPUTERIZED HANDHELD TRADING TERMINALS AT THE TWO CHICAGO EXCHANGES WILL MORE THAN SATISFY THE REQUIREMENTS FOR ADEQUATE TRADE RECORDING THE EXCHANGES PLAN TO INTRODUCE THE HANDHELD COMPUTERS TO THE TRADING PITS WITHIN A YEAR OR SO SEPARATELY THE CFTC PROPOSED RULES THAT WOULD ESTABLISH NEW STANDARDS FOR MEMBERSHIP ON EXCHANGES' GOVERNING BOARDS THE PROPOSED RULES WHICH ALSO STEM FROM THE FUTURESTRADING BILL WOULD REQUIRE AT LEAST 20 OF THE MEMBERS OF EXCHANGE GOVERNING BOARDS TO CONSIST OF PUBLIC MEMBERS THE RULES ALSO WOULD REQUIRE AN ADDITIONAL 10 OF THE BOARDS TO CONSIST OF PRODUCERS PROCESSORS EXPORTERS AND OTHER COMMERCIAL USERS OF THE FUTURES MARKETS FINALLY THE PROPOSED RULES WOULD REQUIRE EXCHANGES TO DISQUALIFY INDIVIDUALS WITH CERTAIN DISCIPLINARY HISTORIES FROM SERVING ON COMMITTEES THAT OVERSEE THE EXCHANGES JEFFREY TAYLOR IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9303030074 930303 TECHNOLOGY & HEALTH ALLIEDSIGNAL HAS CATALYST USING ONLY PALLADIUM BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ALLIEDSIGNAL INC INTRODUCED A NEW CATALYST SYSTEM THAT IT SAYS WILL HELP VEHICLES MEET CALIFORNIA'S STRINGENT EMISSION STANDARDS ENTERING A MULTIBILLIONDOLLAR MARKET WHERE SEVERAL OTHER TECHNOLOGIES ARE COMPETING THE COMPANY WHICH ACCOUNTS FOR A QUARTER OF THE WORLDWIDE MARKET FOR AUTOMOTIVE CATALYSTS SAID THE NEW SYSTEM USES ONLY PALLADIUM CURRENT CATALYTIC CONVERTERS ALSO USE TWO OTHER PRECIOUS METALS PLATINUM AND RHODIUM WHICH ARE MORE EXPENSIVE AND SCARCE THE ELIMINATION OF PLATINUM AND RHODIUM WILL LOWER THE COST OF THE NEW CATALYST SYSTEM BY 30 TO 50 ALLIEDSIGNAL SAID THE MORRIS TOWNSHIP NJ COMPANY MAKES AUTO AND AEROSPACE PRODUCTS AND ADVANCED MATERIALS THE ALLIEDSIGNAL ANNOUNCEMENT SENT THE PRICE OF PLATINUM FOR APRIL DELIVERY SKIDDING 480 TO 341 AN OUNCE THE PRICE OF PALLADIUM FOR JUNE DELIVERY LEAPED 6 TO 10770 AN OUNCE CURRENT CATALYTIC CONVERTERS USE ALL THREE METALS TO REMOVE CARBON MONOXIDE NITROUS OXIDES AND HYDROCARBONS WHICH RESULT FROM INCOMPLETE COMBUSTION THE MAKERS OF THESE DEVICES HAVE BEEN SEEKING A SYSTEM THAT USES ONLY PALLADIUM THE CHALLENGE HAS BEEN DEVELOPING A PALLADIUMONLY SYSTEM THAT CAN ALSO WITHSTAND HIGH TEMPERATURES FOR 100000 MILES A FEDERAL STANDARD SAID JERRY SUMMERS TECHNICAL DIRECTOR OF ALLIEDSIGNAL'S ENVIRONMENTAL CATALYSTS BUSINESS HE SAID THE NEW CATALYTIC CONVERTER FUNCTIONS IN TEMPERATURES AS HIGH AS 1000 DEGREES CELSIUS SIGNIFICANTLY HIGHER THAN THE 600 TO 800 DEGREES UNDER THE HOOD ALLIEDSIGNAL'S TECHNOLOGY WILL BE COMPETING AGAINST SEVERAL OTHER SYSTEMS BOTH NISSAN MOTOR CO AND FORD MOTOR CO HAVE SAID THEY'RE DEVELOPING CATALYTIC CONVERTERS THAT WOULDN'T USE PLATINUM CORNING INC SAID LAST YEAR THAT IT TOO HAD DEVELOPED A NEW TECHNOLOGY FOR CATALYTIC CONVERTERS THAT ARE EFFICIENT IN MEETING STRINGENT POLLUTION STANDARDS BUT REQUIRE PLATINUM AS ONE OF THE METALS AN AFFILIATE OF WR GRACE & CO IS MARKETING A HEATED CONVERTER THAT USES ELECTRICITY FROM THE CAR BATTERY TO REDUCE EXHAUST POLLUTANTS CATALYTIC CONVERTERS HAVE GAINED CONSIDERABLE ATTENTION RECENTLY BECAUSE THEY CAN HELP ATTAIN THE SAME OBJECTIVES AS ALTERNATIVE FUELS ALLIEDSIGNAL SAID IT HAS SOLD THE CATALYST SYSTEM TO AN AUTO MAKER WHICH IT DECLINED TO NAME AND THAT IT'S TESTING THE DEVICE WITH SEVERAL OTHER CAR MAKERS ALLIEDSIGNAL SHARES WERE TRADING LATE YESTERDAY AT 65625 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303030073 930303 BUSINESS BRIEF CINCINNATI MILACRON INC FIRM SLATES PLANT CLOSINGS AND LAYOFFS AT VALENITE UNIT CINCINNATI MILACRON INC SAID IT WILL CLOSE NINE PLANTS AND CUT 610 EMPLOYEES IN A BID TO BOOST PROFITABILITY AT ITS RECENTLY ACQUIRED VALENITE UNIT THE MOVE WON'T FORCE THE CINCINNATI MACHINE TOOL MAKER TO TAKE A SPECIAL CHARGE BECAUSE IT INCLUDED RESTRUCTURING EXPENSES IN THE 80 MILLION IT PAID FOR VALENITE WHICH MAKES PRECISION ENGINEERED MATERIALS AND PARTS A SPOKESMAN DECLINED TO BREAK OUT THE CHARGE THE 80 MILLION PRICE INCLUDED ASSUMED DEBT CINCINNATI MILACRON WILL CLOSE PLANTS IN KENTUCKY MICHIGAN OHIO AUSTRALIA BRAZIL ITALY MEXICO AND BRITAIN IT ALSO WILL CUT WORKERS AT PLANTS IN MICHIGAN AND CANADA BUT WILL ADD EMPLOYEES AT FACTORIES IN SOUTH CAROLINA TEXAS FRANCE AND GERMANY THE NET RESULT WILL REDUCE VALENITE'S 2700PERSON WORK FORCE BY 480 9303030072 930303 INTERNATIONAL BRIEF SABENA WORLD AIRLINES BELGIAN CARRIER TO REPORT 176000 PROFIT FOR 1992 SABENA WORLD AIRLINES THE BELGIAN CARRIER SAID IT WILL POST A CONSOLIDATED PROFIT OF SIX MILLION BELGIAN FRANCS 176000 FOR 1992 MARKING A SURPRISE TURNAROUND FROM A 1991 LOSS OF 24 BILLION FRANCS ALTHOUGH THE PROFIT WAS MODEST CHAIRMAN PIERRE GODFROID ONLY SIX MONTHS AGO TOLD JOURNALISTS HE EXPECTED THE GROUP TO REPORT A LOSS OF ABOUT ONE BILLION FRANCS FOR 1992 BUT MR GODFROID SAID YESTERDAY THAT STRONGERTHANEXPECTED NOVEMBER AND DECEMBER RESULTS AND HUGE SAVINGS FROM THE AIRLINE'S PARTNERSHIP WITH AIR FRANCE COMBINED TO PRODUCE A SMALL PROFIT COMPLETE FINANCIAL INFORMATION FOR SABENA WILL NOT BE RELEASED UNTIL APRIL BUT MR GODFROID SAID THAT THE AIRLINE ITSELF HAD AN OPERATING PROFIT IN 1992 AND THAT THE GROUP SHOWED A POSITIVE OPERATING CASH FLOW OF 176 BILLION FRANCS MR GODFROID RELEASED THE INFORMATION AT A NEWS CONFERENCE TO ANNOUNCE AN OVERHAUL OF SABENA'S CORPORATE IDENTITY WITH NEW LOGOS AND A NEW COLOR SCHEME FOR THE PLANES 9303030071 930303 MARKETING & MEDIA FCC TAKES NEW LOOK AT TV PROGRAMMING AIMED AT CHILDREN WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION IS TAKING A NEW LOOK AT TELEVISION PROGRAMMING AIMED AT CHILDREN THE AGENCY SAID IT WAS TAKING THE STEP BECAUSE IT FOUND LITTLE CHANGE IN CHILDREN'S PROGRAMMING IN RECENT YEARS DESPITE PASSAGE OF THE CHILDREN'S TELEVISION ACT OF 1990 THE FCC SAID IT COMPARED LISTS OF CHILDREN'S SHOWS CONTAINED IN RECENT APPLICATIONS FOR BROADCAST LICENSE RENEWALS WITH CONGRESSIONAL FINDINGS WHEN LAWMAKERS WERE CONSIDERING THE 1990 LAW BROADCASTERS THE AGENCY CONCLUDED MAY REMAIN UNCERTAIN AS TO THE SCOPE OF THEIR PROGRAMMING OBLIGATIONS AND THIS UNCERTAINTY MAY LARGELY EXPLAIN THE APPARENT LACK OF GROWTH IN CHILDREN'S PROGRAMMING THE AGENCY ASKED FOR PUBLIC COMMENT ON WHETHER IT SHOULD DEFINE MORE PRECISELY THE LEVELS AND TYPES OF PROGRAMMING THAT BROADCASTERS MUST CARRY TO MEET THE INFORMATIONAL NEEDS OF CHILDREN THE COMMISSION SUGGESTED THAT BOTH THE AGENCY AND BROADCASTERS MIGHT BENEFIT FROM CLEAR EXAMPLES AND BETTER DEFINITIONS OF PROGRAMMING REQUIREMENTS THE FCC ALSO TENTATIVELY CONCLUDED IT SHOULD SPECIFY THAT THE PRIMARY OBJECTIVE OF A BROADCASTER'S CORE PROGRAMMING FOR CHILDREN IS EDUCATING OR INFORMING CHILDREN ENTERTAINING THEM SHOULD BE A SECONDARY GOAL 9303030070 930303 BUSINESS BRIEF MEDIA LOGIC INC EARNINGS EXPECTED TO RISE FIRM ENTERS A NEW BUSINESS MEDIA LOGIC INC TOLD A SPECIAL MEETING OF SHAREHOLDERS THAT SALES AND EARNINGS FOR THE FOURTH QUARTER ENDING MARCH 31 WILL BE ABOVE THIRDQUARTER RESULTS AND DISCLOSED PLANS TO ENTER A NEW BUSINESS SELLING ITS OWN BRAND OF 35INCH DATA DISKS HOLDERS ALSO APPROVED AN INCREASE IN AUTHORIZED COMMON SHARES TO 20 MILLION ALLOWING DIRECTORS TO DECLARE A PREVIOUSLY ANNOUNCED 2FOR1 STOCK DIVIDEND THE DIVIDEND IS PAYABLE MARCH 16 TO SHARES OF RECORD MARCH 16 PREVIOUSLY THE PLAINVILLE MASS COMPANY WAS AUTHORIZED TO HAVE THREE MILLION COMMON SHARES AFTER THE STOCK DIVIDEND MEDIA LOGIC WILL HAVE 3821800 SHARES OUTSTANDING THE NEW BUSINESS WILL TARGET LARGE COMPUTER DISK USERS IT WILL FOCUS ON THE PREMIUM END OF THE DISK MARKET AND HAS ALREADY BEGUN SHIPPING THE DISKETTES IN THE THIRD QUARTER THE MAKER OF DISK TEST SYSTEMS HAD NET INCOME OF 12 MILLION OR 58 CENTS A SHARE ON SALES OF 61 MILLION 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 9303030069 930303 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES UNIT TO MAKE AND DISTRIBUTE SOFTWARE FOR OTHER FIRMS INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY SAID IT FORMED A UNIT TO MANUFACTURE AND DISTRIBUTE SOFTWARE FOR OTHER COMPANIES THE MOVE IS THE COMPUTER GIANT'S LATEST ATTEMPT TO SQUEEZE EXTRA REVENUE FROM OPERATIONS THAT PREVIOUSLY HAD SERVED ONLY INTERNAL IBM CUSTOMERS DESPITE 14 BILLION IN REVENUE FROM SUCH NEW SOURCES LAST YEAR IBM'S TOTAL 1992 REVENUE WAS STALLED AT ABOUT 65 BILLION IBM SAID THE BUSINESS IBM SOFTWARE MANUFACTURING CO WILL OFFER SERVICES SUCH AS MASS DUPLICATION OF THE COMPUTER DISKETTES USED TO DISTRIBUTE SOFTWARE PRODUCTION AND PRINTING OF INSTRUCTION MANUALS PACKAGING TECHNICAL SUPPORT AND TELEMARKETING THE COMPANY ALSO WILL CONTINUE TO BE SOLE PROVIDER OF THESE SERVICES TO IBM 9303030068 930303 LETTERS TO THE EDITOR TAKINGS CLAUSE IN YOUR FEB 11 ASIDE OUTDOORSMAN OR OUT OF IT YOU CAST SCORN ON INTERIOR SECRETARY BRUCE BABBITT FOR BEING NOT FAMILIAR WITH THE TAKINGS CLAUSE OF THE 14TH AMENDMENT TO THE CONSTITUTION THE DEARTH OF JUDICIAL ENFORCEMENT OF THE TAKINGS CLAUSE HAS CAUSED MANY OTHERWISE INTELLIGENT AND LEARNED PEOPLE TO FORGET THAT IT EXISTS IN DEFENSE OF SECRETARY BABBITT HOWEVER THE TAKINGS CLAUSE IS USUALLY FOUND IN THE FIFTH AMENDMENT RIGHT AFTER THE CONSTITUTION'S WELLKNOWN PROTECTION AGAINST SELFINCRIMINATION PERHAPS YOUR EDITORIAL BOARD WOULD LIKE TO PLEAD THE FIFTH AMENDMENT ON THIS ONE 9303030067 930303 BUSINESS BRIEF GENZYME CORP HEALTHCARE PRODUCTS FIRM POSTS RISE IN 4THPERIOD NET GENZYME CORP REPORTED FOURTHQUARTER NET INCOME OF 84 MILLION OR 33 CENTS A SHARE AFTER A 18 MILLION ONETIME CHARGE ON A 53 JUMP IN REVENUE TO 601 MILLION IN THE YEARAGO FOURTH QUARTER NET WAS 77 MILLION OR 30 CENTS A SHARE ON REVENUE OF 393 MILLION FOURTHQUARTER OPERATING EARNINGS BEFORE THE CHARGE EQUAL TO SEVEN CENTS A SHARE ROSE 33 THE CHARGE WAS FOR EXPENSES INCURRED IN THE ACQUISITION OF VIVIGEN A SMALL BIOTECHNOLOGY FIRM GENZYME STOCK ROSE IN OVERTHECOUNTER TRADING AFTER THE REPORT CLOSING AT 3350 UP 150 HENRI A TERMEER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CAMBRIDGE MASS HEALTHCARE PRODUCTS CONCERN SAID THAT ALL OF OUR BUSINESS UNITS MADE SIGNIFICANT CONTRIBUTIONS TO OUR BROADBASED REVENUE AND OPERATING PROFITABILITY 9303030066 930303 BUSINESS BRIEF NORTHERN TELECOM LTD TALKS ABOUT JOINT VENTURE OCCUR WITH ROBERT BOSCH NORTHERN TELECOM LTD TORONTO SAID IT IS NEGOTIATING WITH GERMANY'S ROBERT BOSCH GMBH TO FORM A JOINT VENTURE THAT WOULD MAKE AND MARKET HIGHSPEED TELECOMMUNICATIONS EQUIPMENT THE MOVE IS NORTHERN TELECOM'S LATEST PUSH INTO EUROPE TARGETING THE HUGE GERMAN MARKET AFTER ITS PARTNERSHIP WITH FRANCE'S MATRA SA AND ITS ACQUISITION OF BRITAIN'S STC PLC NORTHERN TELECOM SAID ITS GOAL IS EQUAL OWNERSHIP WITH BOSCH OF A VENTURE TO DEVELOP FIBEROPTIC TRANSMISSION SYSTEMS SPECIFIC DETAILS OF THE TIEUP INCLUDING EACH COMPANY'S INVESTMENT ARE BEING WORKED OUT BUT BOTH COMPANIES SAID THEY WOULD DEVOTE SUBSTANTIAL TECHNOLOGY ASSETS AND PERSONNEL TO THE VENTURE BOSCH IS A BIG ENGINEERING AND TECHNOLOGY COMPANY NORTHERN TELECOM IS A MAKER OF TELECOMMUNICATIONS EQUIPMENT 9303030065 930303 BUSINESS BRIEF AMERICAN STORES CO COMPANY POSTS 59 INCREASE IN FISCAL 4THQUARTER PROFIT AMERICAN STORES CO SAID PROFIT ROSE 59 FOR THE FISCAL FOURTH QUARTER ENDED JAN 30 HELPED BY STRONG RESULTS IN THE COMPANY'S DRUG STORE BUSINESS THE SALT LAKE CITY GROCERY AND DRUG STORE CHAIN SAID IT HAD NET INCOME OF 938 MILLION OR 133 A SHARE COMPARED WITH 589 MILLION OR 85 CENTS A SHARE A YEAR EARLIER SALES FELL 7 TO 485 BILLION FROM 522 BILLION FOR THE YEAR NET INCOME ROSE TO 2064 MILLION OR 294 A SHARE FROM 1994 MILLION OR 288 A SHARE A YEAR EARLIER THE RESULTS INCLUDED A ONETIME LOSS OF 20 CENTS A SHARE ON THE SALE OF 74 JEWEL OSCO FOOD AND DRUG STORES THE YEAREARLIER RESULTS INCLUDE SEVERAL NONRECURRING ITEMS INCLUDING NET GAINS ON THE SALE OF ASSETS A CHARGE FOR AN ACCOUNTING CHANGE AND AN ACCRUAL FOR LITIGATION FULLYEAR SALES FELL 85 TO 1905 BILLION FROM 2082 BILLION SEPARATELY THE COMPANY ANNOUNCED A BUYBACK OF AS MANY AS TWO MILLION COMMON SHARES THE PURCHASES WILL BE MADE FROM TIME TO TIME ON THE OPEN MARKET AS OF YEAR END THE COMPANY HAD ABOUT 709 MILLION COMMON SHARES OUTSTANDING 9303030063 930303 BUSINESS BRIEF WAXMAN INDUSTRIES INC COMPANY FILES TO SPIN OFF ITS BARNETT SUPPLIES UNIT WAXMAN INDUSTRIES INC BEDFORD HEIGHTS OHIO FILED A REGISTRATION STATEMENT TO SPIN OFF ITS BARNETT PLUMBING AND ELECTRICAL SUPPLIES UNIT THROUGH A PROPOSED INITIAL PUBLIC OFFERING OF 21 MILLION COMMON SHARES THE ESTIMATED OFFERING PRICE OF THE SHARES IS 9 TO 10 A PIECE AFTER THE PROPOSED SALE WAXMAN WOULD OWN 83 OF BARNETT'S STOCK LADENBURG THALMANN & CO IS THE MANAGING UNDERWRITER OF THE PROPOSED OFFERING BARNETT WOULD USE PROCEEDS TO REPAY ITS DEBT TO WAXMAN WAXMAN WOULD USE THE REPAYMENT TO PAY DOWN ITS OWN DEBT BARNETT BASED IN JACKSONVILLE FLA WILL INCLUDE WAXMAN'S MAIL ORDER AND TELEMARKETING GROUP IT WILL MARKET AND DISTRIBUTE PLUMBING ELECTRICAL AND HARDWARE PRODUCTS TO RETAILERS CONTRACTORS AND OTHERS WAXMAN SUPPLIES HOME REPAIR AND REMODELING MARKETS IN THE US AND CANADA 9303030062 930303 BUSINESS BRIEF SOMATIX THERAPY CORP GENE THERAPY PROTOCOL GETS NIH PANEL'S NOD FOR A CANCER SOMATIX THERAPY CORP ALAMEDA CALIF SAID AN ADVISORY COMMITTEE OF THE NATIONAL INSTITUTES OF HEALTH HAS APPROVED ITS GENE THERAPY PROTOCOL FOR THE TREATMENT OF ADVANCED RENAL CANCER THE THERAPY WAS DEVELOPED IN COLLABORATION WITH THE WHITEHEAD INSTITUTE FOR BIOMEDICAL RESEARCH AND THE JOHNS HOPKINS ONOCOLOGY CENTER SOMATIX SAID IT RECEIVED APPROVAL FROM THE RECOMBINANT ADVISORY COMMITTEE WHICH REVIEWS ALL HUMAN GENE THERAPY PROTOCOLS SUBMITTED BY INSTITUTIONS RECEIVING CERTAIN FEDERAL FUNDS THE COMPANY SAID IT WILL NOW FOCUS ON PREPARING AND FILING AN INVESTIGATIONAL NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION THERE ARE ABOUT 25000 NEW CASES OF RENAL CANCER DIAGNOSED IN THE US EACH YEAR 9303030060 930303 INSIDE TRACK APPLIED BIOSCIENCE INSIDERS NIBBLE AT BATTERED SHARES BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BEATENDOWN SHARES OF APPLIED BIOSCIENCE INTERNATIONAL INC NOW TRADING AT 62 BELOW THEIR 1992 HIGH ARE RECEIVING SOME INTEREST FROM COMPANY INSIDERS FIVE EXECUTIVES AT APPLIED BIOSCIENCE A CLINICAL TESTING TOXICOLOGY AND ENVIRONMENTAL SERVICES COMPANY BASED IN PRINCETON NJ BOUGHT A TOTAL OF 16000 SHARES IN DECEMBER AND JANUARY ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION MOREOVER THEIR MODEST PURCHASES REVERSED AN EARLIER PATTERN OF SELLING AT THE COMPANY THE FILINGS SHOW THE INSIDER NIBBLING COMES AMID THE COMPANY'S ONEMILLIONSHARE STOCK BUYBACK ANNOUNCED JAN 7 CHAIRMAN KENNETH HARPER SAID THE COMPANY HAS COMPLETED THE REPURCHASE OF ABOUT 600000 SHARES AND IS CONSIDERING EXPANDING THE BUYBACK PROGRAM MR HARPER SAID THE STOCK PRICE HAS DECLINED QUITE SIGNIFICANTLY IN THE PAST SIX MONTHS AND WE FEEL NOW THAT IT'S GREATLY UNDERVALUED SO THE OFFICERS OF THE COMPANY BOUGHT SHARES MR HARPER HIMSELF DIDN'T MAKE ANY PURCHASES BUT THE BIGGEST INSIDER BULL WAS THE PRESIDENT GROVER C WRENN HE BOUGHT 10000 SHARES ON DEC 28 FOR 9 A SHARE INCREASING HIS TOTAL COMPANY HOLDING TO 709040 SHARES SEC FILINGS SHOW HE WAS NOT AVAILABLE TO COMMENT APPLIED BIOSCIENCE WAS SOMETHING OF A FAVORITE STOCK ON WALL STREET ABOUT A YEAR AGO ANALYSTS ARGUED THAT DEMOGRAPHICS WERE WORKING IN ITS FAVOR AN AGING POPULATION WAS SEEN BOOSTING ITS PHARMACEUTICAL AND CLINICAL BUSINESS AND THAT THE COMPANY'S RELATIVELY LOW DEBT LOAD AND BROAD INTERNATIONAL BASE WERE ALSO PLUSES BUT THE COMPANY'S SHARE PRICE DROPPED PRECIPITOUSLY FROM ITS 1992 HIGH OF 20125 REACHED LATE LAST MARCH IN OVERTHECOUNTER TRADING APPLIED BIOSCIENCE SHARES WERE TRADING LATE YESTERDAY AT 7625 UNCHANGED ON THE DAY MR HARPER SAID THE STOCK SOLD OFF LAST YEAR IN PART BECAUSE REVENUE FROM JAPAN WAS CUT SHARPLY BY THE ECONOMIC RECESSION THERE ABOUT 30 OF THE REVENUE OF THE APPLIED BIOSCIENCE'S BRITISH OPERATIONS COMES FROM JAPAN HE ADDED APPLIED BIOSCIENCE REPORTED A FOURTHQUARTER LOSS OF FIVE CENTS A SHARE COMPARED WITH 15 CENTS A SHARE A YEAR EARLIER DUE TO CHARGES RELATED TO A CORPORATE RESTRUCTURING THE COMPANY HAS ALSO ANNOUNCED IT WILL LAY OFF 10 OF ITS WORK FORCE IN BRITAIN MR HARPER SAID THIS YEAR WILL BE ANOTHER TOUGH YEAR FOR APPLIED BIOSCIENCE WHICH WENT PUBLIC IN 1987 THE COMPANY WAS EXPECTING THAT THE NEW ADMINISTRATION WOULD PROVIDE AN INCENTIVE TO INCREASE SPENDING IN THE ENVIRONMENTAL FIELD BUT THAT HAS YET TO HAPPEN HE SAID BUT WHILE BUSINESS WILL BE FLAT IN THE UK HE SAID THE PROSPECTS ARE BRIGHTER IN THE US HE SAID THE COMPANY'S US CLINICAL OR LIFE SCIENCES OPERATIONS HAVE HAD NINE SUCCESSIVE QUARTERS OF REVENUE GROWTH OTHER INSIDERS WHO PURCHASED SHARES SOME FOR THE FIRST TIME INCLUDED THE COMPANY'S CHIEF FINANCIAL OFFICER AND THE PRESIDENT OF ITS ENVIRONMENTAL SERVICES COMPANIES ACCORDING TO THE SEC FILINGS 9303030059 930303 BUSINESS BRIEF RAYTHEON CO BADGER UNIT FLUOR DANIEL TO BUILD THAI OIL REFINERY RAYTHEON CO LEXINGTON MASS SAID IT SIGNED A LETTER OF INTENT FOR A JOINT VENTURE BETWEEN ITS BADGER CO UNIT AND FLUOR DANIEL TO BUILD A 22 BILLION OIL REFINERY IN RAYONG PROVINCE THAILAND FOR RAYONG REFINERY CO THE PROJECT IS SCHEDULED FOR COMPLETION IN 1996 WHILE THE VALUE TO FLUOR DANIEL AND BADGER WAS NOT DISCLOSED A RAYTHEON EXECUTIVE VALUED THE PROJECT'S INITIAL PHASE RUNNING THROUGH THE END OF THIS YEAR AT 30 MILLION TO BADGER BADGER AND FLUOR DANIEL A UNIT OF FLUOR CORP WILL PERFORM ENGINEERING DESIGN PROCUREMENT AND CONSTRUCTION ACTIVITIES FOR THE REFINERY AND ASSOCIATED FACILITIES TO BE LOCATED IN THE MAP TA PHUT INDUSTRIAL COMPLEX IN RAYONG PROVINCE SHELL INTERNATIONALE PETROLEUM MAATSCHAPPIJ BV IS THE TECHNICAL ADVISER TO RAYONG REFINERY WHICH IS A JOINT VENTURE BETWEEN THE PETROLEUM AUTHORITY OF THAILAND AND SHELL SHELL IS A UNIT OF ROYAL DUTCH/SHELL GROUP THE NEW REFINERY WILL PROCESS 145000 BARRELS OF CRUDE OIL A DAY WITH A HIGH DEGREE OF UPGRADING CAPACITY 9303030058 930303 MONEY MANAGERS BET ON GERMAN STOCKS SHRUGGING OFF NATION'S DEEPENING WOES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL INTERESTED IN INVESTING IN A COUNTRY WITH A DEEPENING RECESSION BALLOONING BUDGET DEFICIT OVERPAID LABOR FORCE WEAK LEADERSHIP GROWING SOCIAL STRAINS AND A POOR CORPORATE EARNINGS OUTLOOK YOU BET SAY SOME US MONEY MANAGERS WHO TAKING A CONTRARIAN VIEW ARE PUMPING MONEY INTO GERMANY EUROPE'S BIGGEST ECONOMY AND A NATION UNDER EXTREME STRAIN ARGUING THAT DOOMSAYERS INCLUDING THE GERMANS THEMSELVES ARE OVERLY PESSIMISTIC AC MOORE A PORTFOLIO MANAGER AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF BEGAN INCREASING HIS GERMAN STOCK PORTFOLIO LATE LAST YEAR HE ARGUES THAT GERMANS ARE A PEOPLE WHO ARE CONSCIENTIOUS HARDWORKING AND FEARFUL OF NOT CORRECTING THINGS THAT GO WRONG WHAT'S MORE HE ADDS I'M SENSING THAT WE ARE AT A POINT OF MAXIMUM PSYCHOLOGICAL DEPRESSION IN GERMANY THAT'S USUALLY THE CONDITION WHEN MARKETS TEND TO MAKE THEIR LOWS INDEED GERMAN STOCK PRICES MAY HAVE ALREADY BOTTOMED SO FAR THIS YEAR THE GERMAN MARKET AS MEASURED BY THE DAX HAS RISEN 10 AND MR MOORE THINKS GERMAN STOCKS HAVE MUCH FURTHER TO RISE PROPELLED BY FALLING INTEREST RATES AND THE HOARDES OF CASH GERMAN INVESTORS ARE SITTING ON THAT CAN BE READILY INVESTED IN STOCKS WHEN SENTIMENT CHANGES PAUL D EHRLICHMAN A PARTNER AT BRANDYWINE ASSET MANAGEMENT INC IN WILMINGTON DEL AGREES THE BIG REASON WE LIKE THE GERMAN STOCK MARKET IS BECAUSE THE STOCKS ARE SO DAMNED CHEAP AND WE'RE CONTRARIAN HE SAYS THE OVERALL MACROECONOMIC ENVIRONMENT IN GERMANY IS DEPRESSING STOCKS AND THAT'S GOOD BECAUSE WHEN THE ENVIRONMENT CHANGES IT'S LIKE A TIDE THAT RAISES ALL BOATS MANY GERMAN STOCKS HE POINTS OUT ARE TRADING AT 40 TO 55 OFF THEIR ALLTIME HIGHS IN JANUARY BRANDYWINE MOVED INTO THE GERMAN STOCK MARKET IN A BIG WAY IT HAS INVESTED 174 OF ITS NONUS STOCK PORTFOLIO THERE THAT COMPARES WITH ONLY 5 FOR THE AVERAGE US FUND MANAGER ACCORDING TO CONSULTANTS FRANK RUSSELL CO AND THE 68 WEIGHTING THAT GERMANY REPRESENTS IN MORGAN STANLEY CAPITAL INTERNATIONAL'S EUROPE AUSTRALIA FAR EAST INDEX THE GERMAN BULLMARKET CYCLE HAS JUST BEGUN SAYS MR MOORE BY CONTRAST HE CONTENDS THAT AFTER A 29MONTH BULL RUN THE US STOCK MARKET IS ABOUT TO RUN OUT OF STEAM HIS FAVORITE GERMAN PICKS ARE COMMERZBANK AG AND DEUTSCHE BANK AG TWO BANKS WHICH SHOULD BENEFIT FROM LOWER RATES AND ELECTRICAL AND TELECOMMUNICATIONS GIANT SIEMENS AG AN INFRASTRUCTURE PLAY ALREADY THERE ARE SOME PROMISING SIGNS GERMAN INFLATION MAY HAVE PEAKED AND GOVERNMENT WORKERS IN EARLY FEBRUARY ACCEPTED A 3 WAGE INCREASE FOR 1993 CONSIDERABLY BELOW CURRENT INFLATION RATES AND FAR BELOW INITIAL DEMANDS SAYS MARGARET LINDSAY A PORTFOLIO MANAGER AT FIDUCIARY TRUST CO INTERNATIONAL IN NEW YORK IN ADDITION THE GERMAN MONEY SUPPLY ACTUALLY FELL IN JANUARY AND THE BUNDESBANK GERMANY'S CENTRAL BANK HAS LOWERED INTEREST RATES A BIT THE DOWNWARD TREND IN RATES IS DEFINITELY IN PLACE SAYS MS LINDSAY STILL BETTING ON GERMAN STOCKS TAKES GUTS WITH THE BONN GOVERNMENT EXPECTING THE ECONOMY TO SHRINK 05 THIS YEAR AND SOME PRIVATE ANALYSTS PREDICTING A 15 PLUNGE MORGAN STANLEY & CO IS PROJECTING AN 8 TO 10 DECLINE IN GERMAN CORPORATE EARNINGS DESPITE LOWER INTEREST RATES THE BUNDESBANK CONCERNED ABOUT HUGE BUDGET DEFICITS ASSOCIATED WITH THE HIGH COST OF BAILING OUT THE FORMER EAST GERMANY IS STILL NUDGING RATES DOWN ONLY VERY SLOWLY IN ADDITION BUSINESS INVESTMENT IS DEPRESSED ORDERS ARE DOWN AND BUSINESS SENTIMENT SITS AT A POSTWORLD WAR II LOW MORE SERIOUSLY GERMAN INDUSTRY BURDENED WITH THE WORLD'S MOST EXPENSIVE LABOR FORCE SOME OF THE SHORTEST WORK HOURS HIGH TAXES AND A STRONG CURRENCY RELATIVE TO ITS MAJOR TRADING PARTNERS IS BECOMING INCREASINGLY UNCOMPETITIVE GERMAN PRODUCTIVITY HAS BEEN FALLING FASTER THAN THAT OF ITS TRADING PARTNERS FOR QUITE SOME TIME MORGAN STANLEY RECENTLY WROTE ITS CLIENTS AT CURRENT COST LEVELS THERE IS UNLIKELY TO BE AN EXPORTLED RECOVERY FOR GERMANY IT IS SIMPLY TOO UNCOMPETITIVE IN A WORLD OF COMPETITIVE DEVALUATIONS AND EMERGING ECONOMIES BRIMMING WITH CHEAP SKILLED LABOR PRODUCING THE SAME THINGS THUS RICHARD DAVIDSON A EUROPEAN EQUITY STRATEGIST AT MORGAN STANLEY IN LONDON BELIEVES THAT THE POTENTIAL FOR HIGHER GERMAN STOCK PRICES IS LIMITED THE MARKET STILL HAS TO COME TO TERMS WITH SEVERAL YEARS OF STRUCTURAL RECESSION RATHER THAN A CYCLICAL RECESSION MEANING THAT GROWTH IN GERMANY WILL LAG EUROPEAN GROWTH FOR THREE TO FOUR YEARS AT LEAST HE SAYS IF ALL THIS DOESN'T SOUND GLOOMY ENOUGH AMERICAN INVESTORS FACE AN ADDITIONAL HURDLE MANY ECONOMISTS PREDICT THE DOLLAR WILL CONTINUE TO CLIMB AGAINST THE MARK RISING ANOTHER 13 TO 22 THAT WOULD CUT INTO IF NOT ELIMINATE ANY GAIN IN GERMAN STOCKS MR MOORE OF ARGUS IS UNDETERRED LONG TERM HE SEES THE MARK STRENGTHENING ON THE BACK OF THE INFLATIONFIGHTING BUNDESBANK HE ALSO SEES GERMAN COMPANIES' LARGE INVESTMENTS IN THE CZECH REPUBLIC SLOVAKIA HUNGARY AND POLAND PAYING OFF IN IMPROVED COMPETITIVENESS AND A GERMAN BUSINESS CYCLE WITH HIGHER AMPLITUDE AND MORE LONGEVITY BRANDYWINE'S MR EHRLICHMAN FAVORS CHEMICAL COMPANIES BASF AG AND BAYER AG PLUS PAPER MANUFACTURER PWA AG TRANSNATIONAL COMPANIES WITH MANUFACTURING ALL OVER THE WORLD WHOSE PROBLEMS ARE NO DIFFERENT THAN COMPETITORS IN OTHER COUNTRIES AND WHOSE COST STRUCTURES ARE NO DIFFERENT HE ALSO LIKES SEVERAL SMALL COMPANIES SCHMALBACH LUBECA AG A LEADING MAKER OF REUSABLE PACKAGING FORKLIFT MAKER JUNGHEINRICH AG PANTYHOSE MAKER KUNERT AG AND GEA AG A MECHANICAL ENGINEERING COMPANY THAT IS A BIG INFRASTRUCTURE AND ENVIRONMENTAL PLAY ALL FOUR ARE GOOD COMPANIES WHOSE COSTS ARE COMPETITIVE AND PRODUCTS ARE GOOD HE SAYS UNFORTUNATELY THEY HAPPEN TO BE LOCATED IN GERMANY THE PROSPECT OF A STRONGER DOLLAR DOESN'T WORRY MR EHRLICHMAN MANY OF THE COMPANIES IN MY PORTFOLIO ARE LARGE EXPORTERS THAT WOULD BENEFIT FROM A STRONGER DOLLAR SUBSTANTIALLY HE SAYS WE ALSO FEEL THAT EXPECTATION OF A WEAKER MARK IS ALREADY REFLECTED IN THE STOCKS' PRICES EVEN IF THE DOLLAR RISES THESE STOCKS COULD MOVE UP 50 TO 60 JUST TO GET BACK TO A NORMAL VALUATION LEVEL WHILE SHE LIKES GERMANY MS LINDSAY OF FIDUCIARY TRUST ISN'T AS BULLISH FOR ONE SHE THINKS THAT FRENCH SWEDISH AND DUTCH STOCKS OFFER BETTER OPPORTUNITIES THAN GERMAN STOCKS WHAT'S HAPPENING IN GERMANY RIGHT NOW IS MORE POSITIVE FOR THE REST OF EUROPE THAN FOR GERMANY ITSELF SHE SAYS AND IN GERMANY MS LINDSAY IS STICKING MOSTLY TO SUCH BIG STOCKS AS DEUTSCHE BANK SIEMENS AND MANNESMANN AG A BIG ENGINEERING COMPANY WITH AN IMPORTANT CELLULAR PHONE FRANCHISE SHE ALSO OWNS PHILIP HOLZMANN AG A LARGE CONSTRUCTION COMPANY AND VEBA AG A BIG ELECTRICAL UTILITY THAT SHOULD SHORTLY BEGIN TO EXPAND INTO EASTERN GERMANY 9303030057 930303 BUSINESS BRIEF HICKS MUSE & CO ACQUISITION OF DUPONT UNIT FOR 370 MILLION COMPLETED HICKS MUSE & CO SAID IT COMPLETED ITS ACQUISITION OF DU PONT CO'S CONNECTOR SYSTEMS DIVISION FOR 370 MILLION IN CASH AND PREFERRED STOCK THE PRICE WAS REDUCED 30 MILLION BECAUSE OF THE UNIT'S LOWERTHANEXPECTED FOURTHQUARTER EARNINGS HICKS MUSE A CLOSELY HELD LEVERAGED BUYOUT SPECIALIST ANNOUNCED THE DEAL IN NOVEMBER AT 400 MILLION THOMAS O HICKS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE PRICE WAS BASED ON EARNINGS PROJECTIONS THAT TURNED OUT TO BE HIGH HICKS MUSE SAID THE BUSINESS WILL BE KNOWN AS BERG ELECTRONICS INC THE NAME IT OPERATED UNDER BEFORE ITS 1972 ACQUISITION BY DU PONT AND WILL BE RUN BY ITS CURRENT EXECUTIVES AND MANAGEMENT SPECIALISTS FROM MILLS & PARTNERS INC ST LOUIS WHICH IS PARTICIPATING IN THE ACQUISITION BERG ELECTRONICS WITH ANNUAL SALES OF 400 MILLION MAKES PLUGS FOR COMPUTERS TELECOMMUNICATIONS EQUIPMENT AND OTHER USES 9303030056 930303 STRATEGIC SHIFT A SLUMP IN CAR SALES FORCES NISSAN TO START CUTTING SWOLLEN COSTS ITS WILD GROWTH IN VARIATIONS OF MODELS AND DESIGNS IS NOW BEING REVERSED SHOCKS FOR CORPORATE CULTURE BY CLAY CHANDLER AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL ATSUGI JAPAN AT NISSAN MOTOR CO'S RESEARCH AND DEVELOPMENT CENTER SOUTHWEST OF TOKYO TADASHI ARAI A SCREW ENGINEER IS REPUDIATING HIS LIFE'S WORK I USED TO DERIVE HAPPINESS FROM DESIGNING DIFFERENT TYPES OF THINGS SAYS THE 54YEAROLD MR ARAI POINTING TO A PLEXIGLAS BOARD DISPLAYING 100 SCREWS USED IN NISSAN CARS NOW EMBLAZONED OVER THE DISPLAY IS A NEW MESSAGE BEHOLD THIS IS OUR BULKY STATE HIS TEAM'S NEW MISSION TO CUT THE VARIETY OF FASTENERS IN NISSAN VEHICLES SOME 6000 IN ALL BY HALF IF WE USE FEWER DIFFERENT SCREWS PLANT WORKERS CAN SAVE TIME CHANGING THE HEADS ON THEIR POWER TOOLS HE EXPLAINS DRILLING AN IMAGINARY BOLT WITH HIS INDEX FINGER WE CAN SAVE 50 SECONDS PER CAR AND ONE SECOND EQUALS ONE YEN ONE SECOND EQUALS ONE YEN IT MIGHT SEEM AN UNUSUAL SKINFLINT CALCULUS FOR A GIANT JAPANESE AUTO COMPANY BUT IT ISN'T ESPECIALLY THESE DAYS FOR YEARS JAPAN'S AUTO MAKERS HAVE BEEN JUGGERNAUTS FIRST EXPANDING AT HOME THEN BUILDING PLANTS IN EUROPE THE US AND ASIA AND THEN EATING EVERYONE'S LUNCH MENTION NISSAN OR TOYOTA OR HONDA AND MOST AMERICANS THINK OF SUPERLEAN PRODUCTION THE EFFICIENCY OF JAPANESE MANUFACTURING WELL THINK AGAIN THE WORST SLUMP IN CAR SALES IN 20 YEARS HAS SLAMMED JAPAN'S AUTO COMPANIES NISSAN FOR ONE EXPECTS SOON TO REPORT ITS FIRST ANNUAL PRETAX LOSS SINCE IT WENT PUBLIC IN 1951 FOR THE FIRST TIME IN YEARS JAPAN'S AUTO MAKERS ARE SUDDENLY LOOKING NOT OUTWARD BUT INWARD SEARCHING FOR WAYS TO STAY PROFITABLE AND IN SOME CASES TO SURVIVE WHAT THEY ARE FINDING MAY SHOCK THEIR ADMIRERS AND COMPETITORS ALIKE THE VAUNTED SUPERLEANNESS SO LIONIZED IN THE 1980S LONG AGO GAVE WAY TO ENGINEERING HUBRIS AND AN UNTENABLE COST STRUCTURE SO NOW THE JUGGERNAUTS ARE WAGING INTERNAL BATTLES OVER MR ARAI'S SCREWS FOR STARTERS EASY VICTORY IS BY NO MEANS ASSURED A BLOODLESS CHANGE ISN'T GOING TO DO US ANY GOOD DECLARES YOSHIFUMI TSUJI WHO AS NISSAN'S NEW PRESIDENT HOPES TO PURGE THE EXCESSES OF THE PAST REFORM AND PAIN GO TOGETHER AS I LOOK AROUND I HAVE THE FEELING A LOT OF OTHER COMPANIES ARE THINKING IT'S TIME TO START THEIR OWN BLOODY REFORMATIONS DOING THAT AT A HUGE JAPANESE COMPANY IS VERY STICKY MR TSUJI'S BATTLE PLAN TO PUT NISSAN BACK IN THE BLACK INCLUDES ACTIONS SYMBOLIC AND IN JAPAN RADICAL THERE ARE THE TRIVIAL THINGS DESIGNED MOSTLY TO SPREAD THE NEW GOSPEL OF PARSIMONY NISSAN IS TURNING DOWN THE LIGHTS IN COMPANY CAFETERIAS TO SAVE MONEY IT IS HANDING OUT FEWER SOUVENIR KEY RINGS TO CUSTOMERS IT IS PRESSING WORKERS TO SKIMP ON PENS AND PENCILS AND THERE ARE THE BOMBSHELLS THAT ARE RATTLING NISSAN'S WHOLE CORPORATE CULTURE THE COMPANY IS SLASHING OVERTIME A BIG SOURCE OF INCOME FOR ITS WORKERS IT APPEARS TO BE ABANDONING ITS EFFORT TO COMPETE HEADTOHEAD WITH ARCHRIVAL TOYOTA MOTOR CORP IT SAYS IT WILL CUT ITS WORK FORCE OVER THE NEXT THREE YEARS BY 5000 WORKERS TO 48000 THROUGH ATTRITION EASIER SAID THAN DONE IN JAPAN IT IS PRESSURING SUPPLIERS TO LOWER PRICES AND LAST WEEK IT ANNOUNCED IT WILL SHUT ITS ZAMA CAR PLANT OUTSIDE TOKYO THE FIRST MAJOR FACTORY CLOSING IN JAPANESE AUTOINDUSTRY HISTORY THE MOVE WILL SAVE ABOUT 84 MILLION A YEAR IN OPERATING EXPENSE BUT AT A COST I CAN'T SLEEP AT NIGHT SAID A 41YEAROLD PAINTSHOP WORKER AS HE HURRIED HOME THROUGH THE ZAMA FACTORY GATES ON A COLD NIGHT LAST WEEK ONCE I CLOSE MY EYES ALL THESE THOUGHTS START RACING THROUGH MY HEAD GM FORD CHRYSLER THEY'VE HAD PLANT CLOSINGS BUT WE'VE NEVER HAD THIS EXPERIENCE IN JAPAN EVEN MORE PROFOUND IS THE OFFENSIVE BEING WAGED FROM NISSAN'S TECHNICAL CENTER HERE IN ATSUGI THE COMPANY'S TOP DESIGNERS HAVE BEEN ORDERED TO RENOUNCE A NEARLY DECADELONG QUEST TO BUILD CARS IN EVER MORE SIZES COLORS AND FUNCTIONS TO SATISFY THE PRESUMED WHIMS OF THE WORLD'S DRIVERS THAT EFFORT NISSAN NOW REALIZES SPUN OUT OF CONTROL IN THE CURRENT MODEL LINEUP ALONE NISSAN OFFERS 437 DIFFERENT KINDS OF DASHBOARD METERS 110 TYPES OF RADIATORS SOME 1200 TYPES OF FLOOR CARPETS AND MORE THAN 300 VARIETIES OF ASHTRAYS IN THE FAT YEARS NISSAN COULD AFFORD SUCH EXCESS BUT NOW IT CONSIDERS THAT ARRAY OF CHOICES PLUS ALL THOSE DIFFERENT SCREWS TOO EXPENSIVE AND ULTIMATELY FRUITLESS NISSAN HAS ORDERED ITS DESIGNERS TO SLASH THE NUMBER OF UNIQUE PARTS IN ITS VEHICLES BY 40 MODEL VARIATIONS WHICH HAD BALLOONED TO MORE THAN 2200 WILL BE ROLLED BACK 35 CAN YOU REMEMBER THE SHAPE OF THE STEERING WHEEL IN YOUR CAR MR TSUJI ASKS WONDERING WHY NISSAN'S OLD LAUREL MODEL HAD 87 DIFFERENT VARIATIONS I BOUGHT THIS CAR BECAUSE IT HAD THAT STEERING WHEEL' THAT KIND OF CUSTOMER JUST DOESN'T EXIST HE SCOFFS THE GOAL OF NISSAN'S BROAD REFORMATION IS TO CUT ANNUAL PRODUCTION COSTS BY AT LEAST 200 BILLION YEN 168 BILLION WITHIN THREE YEARS WHILE INCREASING PRODUCTIVITY 30 ABOUT 65 OF THE SAVINGS IN PRODUCTION COSTS WILL COME FROM FEWER AND CHEAPER PARTS AND MATERIALS THE COMPANY SHOULD BE IN THE BLACK IN THE FISCAL YEAR ENDING MARCH 31 1995 NISSAN SAYS WHETHER OR NOT NISSAN SUCCEEDS IN ITS BOLD QUEST IT WON'T BE ALONE PROFITS OF VIRTUALLY ALL 11 JAPANESE AUTO MAKERS ARE EXPECTED TO SKID THIS YEAR THREE SMALLER COMPANIES MAY JOIN NISSAN IN REPORTING LOSSES AS A RESULT ALL OF THEM ARE CUTTING COSTS AND PRODUCT VARIATIONS TOYOTA JAPAN'S BIGGEST CAR MAKER HOPES TO SLASH THE NUMBER OF DIFFERENT PARTS IN ITS CARS BY 45 MITSUBISHI MOTORS CORP PLANS TO CUT MODEL VARIATIONS 20 MOREOVER SIMILAR PLANS WILL BE ADOPTED BY MANUFACTURERS THROUGHOUT JAPAN AND THE WORLD IN COMING YEARS ALREADY JAPAN'S BIG ELECTRONICS COMPANIES HAVE BEEN CUTTING BACK HITACHI LTD SAYS IT IS REDUCING BY AS MUCH AS HALF THE NUMBER OF ITS TELEVISION MODELS MATSUSHITA ELECTRIC INDUSTRIAL CO HAS SLASHED ITS OFFERING OF STEREO EQUIPMENT AND PORTABLE TAPE PLAYERS FROM 6000 MODELS A FEW YEARS AGO TO 1000 IT ALSO HAS DUMPED ITS 1990 SLOGAN A NEW TYPE OF THINKING IN FAVOR OF A HUNKEREDDOWN BACK TO BASICS AT NISSAN THE REVERSAL IS ESPECIALLY ABRUPT IN 1985 THE BIGGEST CONCERN OF MR TSUJI'S PREDECESSOR YUTAKA KUME WAS THAT THE COMPANY PRODUCED TOO FEW DISTINCTIVE CARS FEARFUL THAT NISSAN WOULD CONTINUE TO LOSE MARKET SHARE TO TOYOTA MR KUME INTRODUCED A MORE FREESPIRITED CORPORATE CULTURE BY BUILDING COED WORKER DORMITORIES AND ABOLISHING IDENTIFICATION TAGS NOTING SENIORITY AMONG OTHER THINGS HE EVEN INSTRUCTED MANAGERS TO GO TOWN WATCHING IN TOKYO'S TRENDIEST NEIGHBORHOODS IN SEARCH OF IDEAS FOR JAZZIER CARS IN THAT MORE RELAXED ATMOSPHERE NISSAN HATCHED A BROOD OF WINNING VEHICLES INCLUDING THE RAKISH 300ZX SPORTS CAR AND A SUCCESSION OF WHIMSICAL LIMITEDEDITION VEHICLES SUCH AS THE SCARGO A PETITE DELIVERY VAN SHAPED LIKE A SNAIL THE COMPANY ALSO OUTFITTED FACTORIES IN JAPAN EUROPE AND SMYRNA TENN TO PUMP OUT ALL THE SUBTLE VARIATIONS ITS DESIGNERS COULD DREAM UP AND CHALLENGED TOYOTA WHICH ALSO WAS DIVERSIFYING ITS PRODUCT LINE AT A MINDBOGGLING CLIPNEARLY CAR FOR CAR IN THE LATE 1980S SAYS KOJI ENDO AN ANALYST AT SG WARBURG SECURITIES JAPAN INC NISSAN WOULD CRANK OUT A MODEL TYPE IF IT THOUGHT IT COULD INCREASE MARKET SHARE BY EVEN A FEW UNITS NISSAN INVENTED JUSTIFICATIONS FOR THAT EFFORT THAT JAPAN'S DRIVERS WERE UNIQUELY DEMANDING WAS ONE FAVORITE BUT DID LITTLE MARKET TESTING WITH THE DOMESTIC ECONOMY SOARING AND THE COST OF CAPITAL LOW WHY BOTHER UNTIL TWO OR THREE YEARS AGO CONFESSES TEISUKE HORIO A MANAGER AT ATSUGI WE COULD DESIGN WITHOUT CARING ABOUT COSTS NISSAN IS NOW DISCOVERING THAT MR KUME'S REVOLUTION HAD A TROUBLESOME SIDE EFFECT IT DEEPENED AN ALREADYENTRENCHED CULT OF THE ENGINEER FOR YEARS NISSAN HAS DRAWN THE BEST ENGINEERING GRADUATES FROM JAPAN'S UNIVERSITIES BUT UNFORTUNATELY SALES AND MARKETING SKILLS HAVE NEVER MEASURED UP WITNESS THE JAPANESE CUSTOMER'S COLD RESPONSE TO THE LEOPARD J FERIE A DOMESTIC VERSION OF THE INFINITI LUXURY SEDAN THAT WAS UNVEILED LAST JUNE SINCE THEN NISSAN HAS SOLD ONLY 3095 FERIES ABOUT THE NUMBER IT ANTICIPATED IN THE FIRST MONTH ALONE TO HEAD OFF SUCH DISASTERS IN THE FUTURE MR TSUJI IS DISMANTLING MUCH OF THE KUME STRATEGY WITH SURPRISING BOLDNESS HANDPICKED BY MR KUME MR TSUJI SEEMED ALMOST SHY IN HIS FIRST PUBLIC APPEARANCES AFTER BECOMING PRESIDENT IN FACT MR KUME CHIDED HIM AT A NEWS CONFERENCE AFTER MR TSUJI MODESTLY EXPRESSED DOUBT THAT HE WAS FULLY PREPARED FOR HIS NEW RESPONSIBILITIES THE DEFERENCE DIDN'T LAST LONG EVEN THOUGH TSUJI SAID HE'D FOLLOW IN KUME'S FOOTSTEPS MR ENDO SAYS THE REALITY IS HE'S BEEN DENYING EVERYTHING KUME DID KUME TRIED TO MAKE NISSAN ANOTHER TOYOTA TSUJI HAS DROPPED THAT STRATEGY COMPLETELY NISSAN'S WORKERS HAD KNOWN FOR SOME TIME THAT THE DESIGNERS HAD A SCREW LOOSE AT NISSAN'S MURAYAMA PLANT NORTH OF TOKYO STORAGE BINS FOR THE 62 VARIETIES OF ELECTRICAL HARNESSES IN THE 1989 LAUREL MIDSIZE SEDAN CLOGGED THE ASSEMBLYLINE FLOOR THE HARNESSES WHICH LINK UP ELECTRICAL COMPONENTS IN A CAR WERE STACKED UP FROM HERE ALL THE WAY DOWN TO HERE SHOUTS JIRO MORI AN ENGINEER AT MURAYAMA AS HE RUNS THE LENGTH OF THE 17YARD AREA THE BINS REQUIRED FINDING THE RIGHT HARNESS WASTED TIME AND MONEY MUCH OF THIS SCRAMBLING WAS FOR NOTHING NISSAN ENGINEERS RECENTLY DISCOVERED THAT 70 OF THE 87 TYPES OF STEERING WHEELS FOR THE LAUREL ACCOUNTED FOR JUST 5 OF THE TOTAL INSTALLED INDEED 50 OF NISSAN'S MODEL VARIATIONS CONTRIBUTED ONLY ABOUT 5 OF TOTAL SALES WHEN WE LOOKED AT THE ACTUAL SITUATION WE THOUGHT PATHETIC' SAYS MR HORIO THE DESIGN MANAGER SLAPPING HIS FOREHEAD SO NISSAN ENGINEERS LAUNCHED THEIR PARTS PURGE THEY SLASHED THE LAUREL MODEL TYPES TO 10 FROM 23 AND THE VARIATIONS IN FLOOR CARPETS TO TWO FROM SEVEN STEERINGWHEEL TYPES HAVE BEEN HELD TO ONLY 10 THESE DAYS MOST OF THE CLUMSY BINS AT MURAYAMA ARE GONE HOW IS ALL THIS GOING OVER WITH CUSTOMERS AT NISSAN'S SHOWROOM IN TOKYO'S RITZY GINZA DISTRICT A BRIGHT BANNER HANGS FROM THE CEILING HERALDING THE NEW LAUREL INTRODUCED IN JANUARY SUKKIRI GA II IT DECLARES SIMPLE IS GOOD TEIKA HAGIYA A 46YEAROLD RESTAURATEUR LIKES THAT IDEA MULTIPLE VARIATIONS I HATE ALL THAT SORT OF NONSENSE HE SAYS TRYING OUT THE BACK SEAT OF THE LAUREL IN THE SHOWROOM THE DELUXE THE LX THERE ARE SO MANY DIFFERENT MODEL TYPES NOT EVEN THE SALESMEN CAN REMEMBER THEM MR TSUJI'S SENTIMENTS EXACTLY THE 65YEAROLD PRESIDENT HAS SPENT MOST OF HIS CAREER SUPERVISING PRODUCTION ON THE FACTORY FLOOR AND THAT MAY EXPLAIN HIS IMPATIENCE WITH DESIGNERS WE HAD ENGINES THAT WERE 2 LITERS 23 LITERS 24 LITERS 25 LITERS HE SAYS TO PREPARE AND BUILD ALL THOSE DIFFERENT ENGINE TYPES WE WASTED AN ENORMOUS AMOUNT OF MONEY NOW THE COMPANY HAS A TEAM OF 20 SUPERVISORS BORDER GUARDS THEY ARE CALLED TO BLOCK ALL DESIGNS INCONSISTENT WITH THE CONSOLIDATION EFFORT NO ONE IS CHEERING HARDER FOR THE STREAMLINING THAN YUKIO MIYAMORI THE PRESIDENT OF CALSONIC CORP ONE OF NISSAN'S BIGGEST SUPPLIERS MINDLESS VARIATION BY CAR MAKERS HE SAYS FORCES CALSONIC TO MAKE NO LESS THAN 2000 KINDS OF MUFFLERS ALONE THE MAJORITY OF WHICH ARE USED AT A RATE OF ONLY A FEW UNITS A YEAR THINK ABOUT IT MR MIYAMORI SAYS WE HAVE TO MAINTAIN THE PRESSES DIES AND INVENTORY ON ALL THOSE DIFFERENT KINDS OF MUFFLERS FOR THE LIFETIME OF THE CARS THAT'S NINE OR 10 YEARS IT'S TERRIBLE WILL THE SHAKEUP AT NISSAN ACHIEVE MR TSUJI'S GOAL OF PROFITABILITY BY NEXT YEAR INDUSTRY EXPERTS ARE DIVIDED STEVE USHER AN AUTO ANALYST AT KLEINWORT BENSON INTERNATIONAL INC CALCULATES THAT IF JAPAN'S CAR MAKERS CUT PARTS COSTS JUST 3 THEY WOULD TRIPLE INDUSTRY OPERATING PROFITS FROM THE FISCAL 1991 LEVEL BUT SALES ARE THE KEY AND NISSAN AND THE OTHER AUTO MAKERS HAVE BEEN OFF IN THEIR OPTIMISTIC ESTIMATES TO DATE NISSAN PUBLICLY SAYS CAR SALES SHOULD PICK UP BY THE END OF THIS YEAR THOUGH IT SAYS IT AIMS TO RESTORE PROFITS EVEN IF SALES STAY FLAT BUT MR ENDO THE SG WARBURG ANALYST BELIEVES THAT SALES MAY NOT TURN UP UNTIL 1995 AND THAT NISSAN IS HEADED FOR ANOTHER PRETAX LOSS NEXT YEAR AS FOR TMING THE PAYROLL VIRTUALLY ALL MAJOR MANUFACTURERS IN RECESSIONHIT JAPAN ARE BURDENED WITH EXCESS LABOR AND THEIR LIFETIME EMPLOYMENT GUARANTEES MAKE IT EXTREMELY HARD FOR THEM TO CUT BACK NISSAN HOPES TO SHRINK ITS PAYROLL BY CURBING NEW HIRES AND LETTING ATTRITION RUN ITS COURSE BUT THAT PASSIVE APPROACH MAY NOT YIELD THE CUTS THE COMPANY NEEDS WHAT IS MORE EVEN WITHOUT ZAMA NISSAN HAS ENOUGH CAPACITY JUST IN JAPAN TO BUILD 23 MILLION VEHICLES ANNUALLY IN THE CURRENT FISCAL YEAR THE COMPANY EXPECTS TO BUILD TWO MILLION VEHICLES DOMESTICALLY THE OUTLOOK FOR THE NEXT COUPLE OF YEARS SUGGESTS THAT NISSAN'S OVERCAPACITY PROBLEM WON'T EASE QUICKLY THUS IF FIXED COSTS STAY HIGH AND SALES DON'T RECOVER SOON NISSAN COULD BE FORCED TO TRIM NOT ONLY MORE PARTS BUT MORE PRODUCTION AND PEOPLE IF THAT HAPPENS MR TSUJI'S REFORMATION COULD PROVE BLOODY INDEED 9303030055 930303 OTC FOCUS STOCKS STAGE SHARP RALLY LED BY HEALTH BIOTECH AND COMPUTERRELATED SECTORS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEALTHCARE BIOTECHNOLOGY AND COMPUTERTECHNOLOGY ISSUES PACED A SHARP ADVANCE IN OVERTHECOUNTER STOCKS STOCKS IN GROUPS THAT HAD BEEN PUMMELLED UNTIL RECENTLY SPRANG BACK TAKECARE A HEALTH MAINTENANCE ORGANIZATION JUMPED 3 TO 33 3/4 CHIRON A BIOTECH CONCERN ROSE 3 1/4 TO 52 AND MICROSOFT THE SOFTWARE DEVELOPER CLIMBED 3 1/8 TO 84 5/8 I DON'T THINK THIS MARKET COULD BE EXPLAINED BY ANY PIECE OF NEWS I HAVE SEEN SAID CHRIS MCLELLAN PARTNER IN CHARGE OF TRADING AT ROBERTSON STEPHENS & CO THESE GROUPS HE SAID WERE JUST TOTALLY AND COMPLETELY OVERSOLD THE NASDAQ COMPOSITE INDEX WHICH HAD RISEN THREE SESSIONS IN A ROW BEFORE RETREATING SLIGHTLY YESTERDAY SURGED 821 OR 123 TO 67772 BIG BOARD SHARES KEPT PACE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 278 OR 114 AND THE DOW JONES INDUSTRIAL AVERAGE SOARED 4511 OR 134 TO 340053 TRADERS SAID BUYING INTEREST ACCELERATED AS THE DAY PROGRESSED PURCHASES MADE TO CLOSE OUT SHORT SALES BETS THAT PRICES WOULD DECLINE ADDED TO THE STRENGTH BUT WILLIAM SULYA HEAD OF OTC TRADING AT AG EDWARDS & SONS SAID INSTITUTIONS AND INDIVIDUAL INVESTORS WERE ALSO ACTIVE BUYERS ADVANCING NASDAQ ISSUES TOPPED DECLINERS 14771159 NATIONAL MARKET SYSTEM VOLUME ROSE TO 177433900 SHARES FROM 158193800 SHARES ON MONDAY BUT WAS STILL BELOW THE TORRID LEVELS RECORDED LAST MONTH WHEN ACTIVITY FREQUENTLY TOPPED 200 MILLION SHARES DAILY PRICES FELL INTO A SHARP RETREAT IN MIDFEBRUARY AS INVESTORS FRETTED OVER PRESIDENT CLINTON'S PLANS TO REVIVE THE ECONOMY AND REDUCE COSTS IN THE HEALTHCARE INDUSTRY WHILE MOST OF THOSE WORRIES STILL EXIST ROBERTSON STEPHENS' MCLELLAN SAID INVESTORS HAVE GOTTEN USED TO THE CONCERNS DON R HAYS INVESTMENT STRATEGIST AT WHEAT FIRSTBUTCHER & SINGER SAID A STRONGERTHANEXPECTED COMMERCE DEPARTMENT REPORT ON THE ECONOMY MAY HAVE PLAYED A PART IN THE NASDAQ RALLY ITS INDEX OF LEADING INDICATORS ROSE SLIGHTLY IN JANUARY RATHER THAN EASING AS MANY ANALYSTS HAD PREDICTED BUT MR HAYS SAID THE MARKET RALLY PROBABLY WAS MAINLY ATTRIBUTABLE TO THE HIGH LEVELS OF CASH HELD BY MANY MAJOR INVESTORS PEOPLE JUST HAVE MORE MONEY THAN THEY KNOW WHAT TO DO WITH HE SAID NOTING THAT WITH INTEREST RATES AT A LOW A LOT OF THAT CASH IS GOING INTO STOCKS TRADERS SAID THEY EXPECT THE BUYING TO CONTINUE TODAY THEY BELIEVE YESTERDAY'S MOMENTUM WAS TOO STRONG TO COME APART OVERNIGHT THE NASDAQ COMPOSITE INDEX CLOSED JUST OFF ITS INTRADAY HIGH SEVERAL OBSERVERS THOUGH SAID THEY DOUBT THE BUYING WILL CARRY OVERTHECOUNTER STOCKS TO THE RECORD HIGHS SET EARLY LAST MONTH WHEAT FIRST'S MR HAYS SAID THE MEDICAL AND TECHNOLOGYBASED RALLY MAY HAVE BEEN TOO NARROW AND VOLUME MAY HAVE BEEN TOO LIGHT TO SUPPORT A MOVE TO RECORD HEIGHTS NOW REGENERON SURGED 3 TO 15 1/4 AFTER DILLON READ & CO ANALYST LARRY BLOOM REPEATED A BUY RATING ON THE TARRYTOWN NY BIOTECHNOLOGY CONCERN'S SHARES HE SAID HE EXPECTS SYNERGEN'S RECENT STUMBLE IN ITS ATTEMPT TO DEVELOP A TREATMENT FOR THE BLOOD INFECTION SEPSIS WILL AID REGENERON IN ITS RACE AGAINST SYNERGEN TO UNVEIL A DRUG FOR LOU GEHRIG'S DISEASE THE DILLON READ ANALYST SAID SYNERGEN BASED IN BOULDER COLO MAY BE FORCED TO DIVERT MONEY FROM ITS LOU GEHRIG'S DISEASE RESEARCH IN ORDER PURSUE THE SEPSIS DRUG SYNERGEN'S SHARES ENDED UNCHANGED AT 15 1/2 CHEMTRAK ROCKETED 5 1/4 TO 12 1/4 THE FOOD AND DRUG ADMINISTRATION APPROVED THE SUNNYVALE CALIF COMPANY'S ACCUMETER HOME CHOLESTEROL TEST THE DEVICE IS SAID TO BE THE FIRST OF ITS TYPE APPROVED FOR SALE WITHOUT A PRESCRIPTION INACOM FELL 1 3/4 TO 20 AFTER THE COMPANY DISCLOSED PLANS FOR A PUBLIC OFFERING OF 25 MILLION TO THREE MILLION ADDITIONAL SHARES OF ITS COMMON THIS MONTH OR NEXT IN ADDITION THE OMAHA NEB MARKETER OF COMPUTER SYSTEMS SAID VALMONT INDUSTRIES ITS LARGEST HOLDER MAY SELL SOME OR ALL OF ITS INTEREST IN THE COMPANY THROUGH THE OFFERING VALMONT BASED IN VALLEY NEB OWNS ABOUT 31 MILLION OR 37 OF INACOM'S 83 MILLION SHARES OUTSTANDING A SPOKESMAN FOR VALMONT WOULDN'T COMMENT ON THE REASON FOR THE POTENTIAL SALE ITS STOCK WAS UNCHANGED AT 21 1/2 FISERV ADDED 1/2 TO 27 1/4 THE BROOKFIELD WIS CONCERN WHICH PROVIDES DATAPROCESSING SERVICES TO FINANCIALSERVICES COMPANIES AGREED IN PRINCIPLE TO ACQUIRE DATATRONIX FINANCIAL SERVICES A SAN DIEGO CHECK PROCESSOR FISERV PLANS TO ACQUIRE THE COMPANY THROUGH A SWAP OF STOCK TERMS WILL BE BASED ON DATATRONIX'S FIRSTQUARTER EARNINGS SOMATIX THERAPY JUMPED 1 3/8 TO 7 1/4 A COMMITTEE OF THE NATIONAL INSTITUTES OF HEALTH A UNIT OF THE FEDERAL DEPARTMENT OF HEALTH AND HUMAN SERVICES APPROVED THE ALAMEDA CALIF CONCERN'S METHODOLOGY FOR RESEARCHING A TREATMENT FOR RENAL CANCER THE EFFORT IS AT AN EARLY STAGE SOMATIX HASN'T YET FILED TO BEGIN SEEKING FDA MARKETING APPROVAL PRODUCTION OPERATORS TUMBLED 2 7/8 TO 25 1/2 AFTER THE HOUSTON COMPANY LOST A CONTRACT TO PROVIDE COMPRESSION SERVICES AT A SITE OPERATED BY THE VENEZUELAN NATIONAL OIL COMPANY ALTHOUGH THE COMPANY SAID THE CANCELLATION WON'T AFFECT ITS EARNINGS FOR THE SECOND QUARTER THAT ENDS THIS MONTH HANCOCK INSTITUTIONAL EQUITY SERVICES CUT ITS RATING ON THE STOCK TO HOLD FROM BUY WALBRO ADVANCED 1 3/4 TO 35 KIDDER PEABODY & CO ANALYST MICHAEL WARD INITIATED COVERAGE OF THE STOCK WITH A BUY RATING HE SAID THE CASS CITY MICH FUELSYSTEMS MAKER SHOULD BENEFIT FROM INCREASED SALES TO AUTO MANUFACTURERS DURING THE NEXT THREE TO FIVE YEARS BRITE VOICE ADDED 3/4 TO 4 3/4 THE WICHITA KAN COMPANY SAID THE METROCEL CELLULAR UNIT OF LIN BROADCASTING AGREED TO OFFER TO ITS DALLAS AND FORT WORTH TEXAS AREA CUSTOMERS A VOICEOPERATED CELLULAR TELEPHONE DIALING SERVICE DEVELOPED BY BRITE VOICE THE VALUE OF THE ARRANGEMENT WASN'T DISCLOSED 9303030054 930303 CREDIT RATINGS SUNAMERICA INC LOS ANGELES MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON ABOUT 900 MILLION OF SECURITIES OF THIS FINANCIAL SERVICES CONCERN SUNAMERICA'S SENIOR DEBT WAS UPGRADED TO BAA1 FROM BAA2 AND PREFERRED STOCK TO BAA2 FROM BAA3 MOODY'S ALSO RAISED THE FINANCIAL STRENGTH RATINGS OF ITS PRINCIPAL LIFE INSURANCE SUBSIDIARIESSUN LIFE INSURANCE CO OF AMERICA AND ANCHOR NATIONAL LIFE INSURANCE CO BOTH TO SINGLEA2 FROM SINGLEA3 IN ADDITION MOODY'S ASSIGNED A BAA2 RATING TO THE COMPANY'S NEW ISSUE OF MANDATORY CONVERSION PREMIUM DIVIDEND PREFERRED STOCK AND ASSIGNED A PRIME2 RATING TO ITS COMMERCIAL PAPER SUNAMERICA INC WAS FORMERLY KNOWN AS BROAD INC 9303030053 930303 WHAT'S NEWS BUSINESS AND FINANCE STOCK PRICES SOARED AS INVESTORS IGNORED MIXED ECONOMIC NEWS THE DOW JONES INDUSTRIALS JUMPED 4512 TO 340053 THE S&P 500STOCK INDEX GAINED 589 TO 44790 PLACING IT WITHIN STRIKING DISTANCE OF ITS ALLTIME HIGH OF 44956 OVERTHECOUNTER ISSUES ALSO ROSE STRONGLY BOND PRICES EDGED HIGHER AND THE DOLLAR DECLINED LEADING ECONOMIC INDICATORS ROSE 01 IN JANUARY INDICATING THE RECOVERY WILL CONTINUE TO BE SLOW NEWHOME SALES PLUMMETED 138 IN JANUARY THE BIGGEST DECLINE IN 11 YEARS AN INDUSTRY SPOKESMAN CITED BAD WEATHER AND ABNORMALLY HIGH SALES IN DECEMBER FORD AND GM FACE TOUGHER TIMES IN EUROPE TOTAL INDUSTRY SALES THERE ARE EXPECTED TO FALL BY MORE THAN ONE MILLION VEHICLES OR 8 THIS YEAR PUTTING PRESSURE ON BOTH US AUTO MAKERS KMART'S PROFIT JUMPED 12 IN THE FOURTH QUARTER ON A SLIM 1 RISE IN SAMESTORE SALES REFLECTING A STRATEGY OF BOOSTING MARGINS WITHOUT RESORTING TO CHRISTMAS HOLIDAY MARKDOWNS MORGAN STANLEY GROUP SAID ROBERT F GREENHILL WILL STEP DOWN AS PRESIDENT HE WILL BE SUCCEDED BY JOHN J MACK WHO FOR SIX YEARS HAD RUN THE INVESTMENT BANK'S BOND OPERATIONS CS FIRST BOSTON NAMED ROBERT E DIAMOND JR CHAIRMAN OF ITS PACIFIC DIVISION AS HEAD OF US BOND OPERATIONS HE WILL SUCCEED THOMAS SEXTON WHO RESIGNED FOR PERSONAL REASONS THE MINE WORKERS UNION ENDED A MONTHLONG STRIKE JUST ONE DAY AFTER EXPANDING IT BEYOND PEABODY HOLDING TO FIVE MORE BIG COAL PRODUCERS THREE NORTHWEST AIRLINES UNIONS PLAN TO REJECT A PACKAGE DESIGNED TO HELP SAVE THE TROUBLED CARRIER GERMANY'S CENTRAL BANK CAME UNDER NEW PRESSURE TO LOWER INTEREST RATES AFTER THE NATION'S MACHINERY AND PLANTBUILDING INDUSTRY REPORTED AN 18 ORDER DECLINE DURING JANUARY ALLIEDSIGNAL INTRODUCED A CATALYST SYSTEM IT SAYS WILL HELP VEHICLES MEET CALIFORNIA'S EMISSION STANDARDS GPA GROUP HOPES TO SELL 200 MILLION SHARES OF STOCK AT ABOUT 1 EACH FAR BELOW THE 20ASHARE PRICE THE IRISH AIRCRAFT LEASING FIRM HAD SOUGHT IN AN ABORTED PUBLIC OFFERING IN JUNE DONALD TRUMP WANTS TAX ABATEMENTS AND STATEBACKED FINANCING FOR A LONGDELAYED APARTMENT COMPLEX ON MANHATTAN'S UPPER WEST SIDE THE FDA APPROVED THE FIRST NONPRESCRIPTION HOMETEST KIT FOR CHOLESTEROL THE AGENCY SAID THE KIT MADE BY CHEMTRAK INC IS AS ACCURATE AS TESTS USED BY DOCTORS AND LABORATORIES WHEAT AND LIVESTOCK PRICES LEAPED IN THE WAKE OF REPORTS THAT RUSSIA IS ASKING THE CLINTON ADMINISTRATION FOR A RECORD 1 BILLION FOOD AID PACKAGE VECTURA GROUP FILED A SUIT ALLEGING THAT ITS FORMER PRESIDENT DEFRAUDED THE BARGE FIRM OF AT LEAST 105 MILLION A CITICORP UNIT OWNS 80 OF VECTURA NBC BEGAN A SEARCH TO REPLACE MICHAEL GARTNER AS HEAD OF ITS NEWS DIVISION FOLLOWING HIS RESIGNATION YESTERDAY THE NETWORK LET IT BE KNOWN THAT IT SEEKS A TELEVISIONSAVVY SENIOR EXECUTIVE WITH A REPUTATION FOR INTEGRITY BONDS LEHMAN BROTHERS TREASURY INDEX 503365 UP 597 COMMODITIES OIL 2047 A BARREL OFF 13 CENTS DOW JONES FUTURES INDEX 12520 UP 042 SPOT INDEX 12430 UP 005 DOLLAR 11760 YEN OFF 114 16395 MARKS OFF 00151 9303030052 930303 LEISURE & ARTS GARDENING CASTOFF TURNED CUP OF GOLD BY PATTI HAGAN BROOKLYN NY FIVE YEARS AGO I ADOPTED A PLANT THAT FAILED TO MAKE THE UPSCALE CUT IN A DOWNTOWN MANHATTAN ROOF GARDEN HAD I NOT VOLUNTEERED TO CART THIS LEAFLESS FLOWERLESS SHRUB BY SUBWAY TO BROOKLYN IT WOULD HAVE BEEN PUT OUT ON THE STREET ANOTHER HOMELESS HOUSE PLANT SOLANDRA MAXIMA THE CASTOFF'S GIVEN BINOMIAL TURNED OUT TO BE A THANKLESS ORPHAN IT PASSED THE SUMMER ON THE BACK DECK DOING NOT MUCH OF ANYTHING APPEARING AT WORST LIFELESS AND AT BEST LISTLESS IT FLUSHED SOME WAXY POLISHED DARK GREEN LEAVES IT DROPPED THEM THIS STATE OF DESHABILLE SEEMED THE NORM IN FACT THE SOLANDRA STRUCK ME AS SO NUGATORY A PLANT I VERY NEARLY CONDEMNED IT TO BACKYARD EXILE IN LITTLE SIBERIA THAT WINTER BUT ON THE ANNUAL NIGHT OF HOUSEPLANT TRUTH & TRIAGE THE LATEOCTOBER FIRST FREEZE OF 1987 I RELENTED AS THE MERCURY PLUNGED EVER CLOSER TO ICE I RESCUED THE SOLANDRA AND BROUGHT IT IN HOUSE WITH ALL MY OTHER TROPICALS WHEREUPON ALL THE FALL RECALLS BEGAN A MASS SULKIN THE SOLANDRA SULKED A YEAR BY OCTOBER 1988 FED UP I AGAIN CONSIDERED EXEMPTING THE SOLANDRA FROM THE ANNUAL HOUSEPLANT ROUNDUP OUT BACK THE PLANT WAS A DONOTHING AND DID NOTHING FOR ME ALAS I HAVE NEVER BEEN ABLE TO WILL EVEN THE MOST DISLIKABLE PLANT TO CERTAIN DEATH BY HYPOTHERMIA SO I BROUGHT THE SCRAWNY THING IN A SECOND TIME AND GAVE IT A FRONTPARLOR FRONTWINDOW POSITION A BRILLIANT BROOKLYN SOUTHERN EXPOSURE THEN I FORGOT ABOUT IT A MONTH LATER ON A BLEAK NOVEMBER NIGHT I GOT SAFELY IN THE FRONT DOOR WALKED INTO THE DARK FRONT PARLOR AND GOT MUGGED BY AN OVERPOWERING TROPICAL PERFUME I SWITCHED ON THE NEAREST TORCH LAMP AND CASED THE EXOTIC MINIFOREST CROWDING THE WINDOWS THE GARDENIAS HIBISCUSES PLUMERIAS POINSETTIAS LANTANAS NIGHTBLOOMING CEREUSES THE ARISTOLOCHIA THE BUDDLEIA ASIATICA THE VALENCIA ORANGE THE MADAGASCAR KALANCHOE KNOWN INTERCHANGEABLY AS ELEPHANT EAR AND NAPOLEON'S HAT AN ENORMOUS SOLITARY CREME FRAICHECOLORED GOBLET OF A FLOWER WITH INTERIOR MAROON STRIPES POINTING DOWNTHROAT WAS EFFORTLESSLY PROJECTING THE PERFUME ACROSS THE ROOM JUST AS SUDDENLY I HAD FLORAL DEJA VU A FEW WEEKS EARLIER I HAD BEEN MUGGED BY THE SAME BIG FLOWER IN GUATEMALA THE NIGHTSONLYFRAGRANT BATPOLLINATED CUP OF GOLD AKA GOLDEN CHALICEON THE SHORES OF LAKE ATITLAN EVER SINCE DESPITE MY BATFREE INTERIORS AND HABITUAL NEGLECT THE SOLANDRA HAS PUT OUT DRAMATICALLY FROM NOVEMBER THROUGH FEBRUARY EVERY DAY BY 5 PM NIGHTFALL WHEN ALL THINGS CONSIDERED COMES ON THE RADIO THE SOLANDRA COMES ON FRAGRANT AGAIN BEING A FLORADORA WHO FINDS THE INTENSE ROUNDTHECLOCK EFFUMERY OF PAPERWHITE NARCS SOMETIMES DE TROP I WELCOME A CHIROPTEROPHILOUS PLANT THAT PERFUMES ONLY THE NIGHT AIR AS PUNGENT HOUSEPLANT MAVEN TOVAH MARTIN NOTES OF SOLANDRA MAXIMA IN THE ESSENCE OF PARADISE FRAGRANT PLANTS FOR INDOOR GARDENS LITTLE BROWN THIS MEXICAN NATIVE'S BLARING FIVEINCHWIDE FOOTLONG FLOWERS ARE ALMOST TOO BIG TO BE TRUE THE SPECTACLE OF SEVERAL DOZEN CHALICES IN VARIOUS STAGES OF COMING AND GOING CAN RENDER THE UNINITIATED OBSERVER SPEECHLESS I AM BY NOW WELL INITIATED BUT A SOLANDRA PROPERLY NEGLECTED STILL BLOOMS ME TO SPEECHLESSNESS ESPECIALLY CONSIDERING THAT THESE CURVACEOUS MEGAFLEURS POISONOUS IN LEAF AND FRUIT ARE MEMBERS OF THE POTATOTOMATO FAMILY THE SOLANACEAE MS MARTIN ADDS ABOUT SOLANDRA FORTUNATELY IT DOESN'T HAVE THE APPEARANCE OF A PLANT THAT TEMPTS YOU TO TAKE A BITE PERHAPS NOT A BITE BUT MAYBE A TOKE DJ MABBERLEY ENGLISH TAXONOMIST AND WADHAM COLLEGE OXFORD TUTOR IN PLANT SCIENCES POINTS OUT IN THE PLANTBOOK A PORTABLE DICTIONARY OF THE HIGHER PLANTS CAMBRIDGE UNIVERSITY PRESS THAT THE EIGHT SOLANDRA SPECIES RICH IN ALKALOIDS ARE A SOURCE OF SACRED HALLUCINOGENS IN MEXICO THE NEW ROYAL HORTICULTURAL SOCIETY DICTIONARY OF GARDENING STOCKTON PRESS LEAVES OUT THE HALLUCINOGENS BUT MANAGES TO GIVE THE CHALICE VINE A TECHNICAL AND NATURAL CONTEXT FLOWERS NOCTURNALLY FRAGRANT AXILLARY SOLITARY PERIGYNOUS SHORTSTIPITATE FRUIT A CONIC BERRY PULPY 2CHAMBERED NATURALLY OCCURRING AS SEMIEPIPHYTES OR STOUTSTEMMED LIANAS THE CHALICE VINES OFTEN BLOOM IN THE CROWNS OF LARGE BUTTRESSED TREES BUT THERE ARE OTHER SITUATIONAL POSSIBILITIES AND DENIZENS OF ZONES 9 AND 10 SAY CALIFORNIA CARCULTISTS WHO ALSO GARDEN CAN STRIKE WHOLE NEIGHBORHOODS DUMB BY FOLLOWING THE SUGGESTION OF AUSTRALIAN PLANTSMAN STIRLING MACOBOY IN WHAT FLOWER IS THAT HIS 1969 BOOK HE WRITES THAT A SOLITARY SOLANDRA WELLPLACED AND FERTILIZED CAN EASILY COVER A CARPORT IN A SINGLE YEAR BEFORE GETTING SOME SOLANDRA SMARTS I HAD ASSUMED THE NAME CAME FROM THE SPANISH FOR SUN NO WAY JOSE SOLANDRA IS YET ANOTHER NEW WORLD NATIVE AMERICAN MEXICAN PLANT GENUS BAPTIZED AND SAVED WITH A EUROPEAN'S NAME THAT OF AN FOL FRIEND OF LINNAEUS DANIEL CARLSSON SOLANDER 17331782 A SWEDISH NATURALISTBOTANIST WAS BOTH DISCIPLE AND ASSISTANT TO CAROLUS LINNAEUS INVENTOR OF THE LATIN BINOMIAL SYSTEM OF TAXONOMIC CLASSIFICATION SOLANDER HELPED LINNAEUS SPREAD THE BINOMIAL GOSPEL IN THEIR NATIVE SWEDEN AND THEN ENGLAND IN 1768 SOLANDER ACCOMPANIED SIR JOSEPH BANKS ON A PLANTHUNTING CIRCUMNAVIGATION OF THE GLOBE SOLANDER AN FOB FRIEND OF BANKS WAS HONORED BY SIR JOSEPH WHO WHEN HE CHRISTENED AUSTRALIA'S BOTANY BAY GAVE SOLANDER'S NAME TO THE CAPE ON THE SOUTH SIDE OF IT WHILE IT'S POSSIBLE SOLANDER'S SOLANDRA IS NOT EVERY GARDENER'S CUP OF GOLD IT'S HARD TO RAG ON A PLANT THAT THRIVES ON BENIGN NEGLECT LEAN CUISINE POTBOUND ROOTS AND WATER DEPRIVATION PUTTING FORTH FLOWERS THAT HOLD A WEEK AS THEIR COLOR DEEPENS FROM CREAM THROUGH YELLOW TO AMBEROCHER AND SO EVERY THANKSGIVING I GIVE SMALL THANKS FOR THIS FAILSAFE FRAGRANT FALLFLOWERING PLANT AND COULD WISH ONLY FOR A LITTLE BROOKLYN BROWNSTONE BAT TO HELP MY SOLANDRA PRODUCE A FRUIT OF GOLD TO THIS END IN LINE OF SIGHT OF MY SOLANDRA I HAVE HUNG BATS THE 1993 CALENDAR BY BAT CONSERVATION INTERNATIONAL FOUNDER MERLIN TUTTLE DESPITE A SHORTAGE OF ADOPTABLE SOLANDRAS SOME NURSERIES SELL THEM 350 TO 550 BY MAIL GLASSHOUSE WORKS PO BOX 97 STEWART OHIO 457780097 6146622142 CATALOG 150 LOGEE'S GREENHOUSES 141 NORTH ST DANIELSON CONN 06239 2037748038 CATALOG 3 STALLINGS NURSERY 910 ENCINITAS BLVD ENCINITAS CALIF 92024 6197533079 CATALOG 3 BATS IN THE NATIONAL WILDLIFE FEDERATION'S BACKYARD NATURALIST SERIES IS PUBLISHED BY IMAGE HUNTER CO AND DISTRIBUTED BY FULCRUM/STARWOOD PUBLISHING 18009922908 1095 9303030051 930303 DRUCKER ON MANAGEMENT CHINA'S GROWTH AREA THE SERVICE SECTOR BY PETER F DRUCKER COASTAL CHINA HOME TO 400 MILLION PEOPLE OF MERCANTILE AND URBAN CULTURE HAS BEEN THE WORLD'S FASTEST GROWING ECONOMY OVER THE PAST DECADE BUT NOW IT AND THE REST OF THE COUNTRY FACE FORMIDABLE PROBLEMS TO PREVENT RUNAWAY INFLATION THOUSANDS OF UNPRODUCTIVE AND UNPROFITABLE STATE ENTERPRISES THAT EMPLOY MILLIONS OF WORKERS AND ARE A KEY POWER BASE FOR THE COMMUNIST PARTY MUST BE DISMANTLED SOCIAL TENSIONS ARE MOUNTING AS PEASANTS STREAM INTO OVERCROWDED CITIES WHERE THERE IS NO HOUSING NO HEALTH CARE AND FAR TOO FEW JOBS AND A NATIONWIDE POWER STRUGGLE HAS BEGUN IN ANTICIPATION OF THE OCTOGENARIAN LEADERSHIP'S PASSING THEIR SUCCESSORS MAY NOT BE DEMOCRATS YET WHERE THE INTERNAL EFFECTS OF CHINA'S GROWTH ARE UNSETTLING THE EXTERNAL EFFECTS ARE POTENTIALLY DESTABILIZING IT IS HARDLY A HARBINGER OF PEACE THAT THE CHINESE MILITARY WITH NO FOREIGN ENEMY IN SIGHT EAGERLY SNAPS UP WHATEVER HIGHTECH WEAPONS A CASHHUNGRY RUSSIA OFFERS FOR SALE AND THE WORLD IS CONFOUNDED BY A CHINESE TRADE DRAGON THAT EXPORTS LIKE A CAPITALIST BUT IMPORTS LIKE A COMMUNIST THE WORLD MUST FIND NEW WAYS TO MEET THE CHALLENGE OF THIS EMERGING POWER TRADE IS A GOOD EXAMPLE US TRADE POLICY TOWARD CHINA SHOULD BE BASED ON THE ASSUMPTION THAT BY THE EARLY YEARS OF THE NEXT CENTURY COASTAL CHINA MIGHT BECOME ONE OF THE LARGEST ECONOMIC POWERS IN TERMS OF TOTAL GROSS NATIONAL PRODUCT INDUSTRIAL OUTPUT AND INDUSTRIAL EXPORTS YET A CONVENTIONAL APPROACH TO BILATERAL TRADE PROBLEMS MAY FAIL TO TARGET THE FUNDAMENTALLY DIFFERENT KIND OF COMMERCIAL RELATIONSHIP A MODERN CHINA WILL NEED TO HAVE WITH THE WORLD THIS IS BECAUSE CHINA IS LIKELY TO BE THE FIRST COUNTRY WHERE THE BALANCE OF PAYMENTS RATHER THAN THE BALANCE OF TRADE IS THE KEY TO ECONOMIC RELATIONS INDEED CHINA MAY BE THE FIRST COUNTRY TO BE INTEGRATED INTO THE WORLD ECONOMY THROUGH SERVICES RATHER THAN THROUGH TRADE IN GOODS TO BE SURE THE CHINESE MARKET HAS TO OPEN TO FOREIGN GOODS IN MANY WAYS IT IS FAR MORE TIGHTLY LOCKED THAN JAPAN HAS EVER BEEN BUT EVEN IF CHINA'S DOORS ARE FULLY OPENED IT IS DOUBTFUL WHETHER THE COUNTRY WOULD BECOME A MAJOR MARKET FOR FOREIGNMADE GOODS DESPITE THE ENORMOUSNESS OF ITS MARKETPLACE MORE THAN A BILLION PEOPLE WITH RAPIDLY RISING INCOMES AND AN INSATIABLE APPETITE FOR FOREIGN BRANDS CHINA WILL NOT IMPORT COCACOLA AND LEVIS INSTEAD SUCH PRODUCTS WILL BE MANUFACTURED IN CHINA BY JOINT VENTURES BY FRANCHISES SUCH AS SOFTDRINK BOTTLERS BY LICENSEES AND BY ALLIANCES OF ALL KINDS JUST LAST WEEK COCACOLA SIGNED AN AGREEMENT WITH THE GOVERNMENT IN BEIJING TO INVEST 150 MILLION IN 10 BOTTLING PLANTS IN CHINA OVER THE NEXT FIVE YEARS THE REASON FOR THIS IS COMPELLING SOCIAL NECESSITY MANUFACTURING WILL BE THE PRIMARY VEHICLE TO ACCOMMODATE THE CHINESE PEASANT'S TRANSITION FROM THE FEUDAL COUNTRYSIDE TO THE MODERN ERA WITHIN THE NEXT 10 YEARS AS MUCH AS HALF OF CHINA'S POPULATION MIGHT BE EMPLOYED IN FACTORIES WHATEVER CAN BE MADE IN CHINA WILL BE MADE THERE AND THAT MEANS MOST MANUFACTURED PRODUCTS BRINGING DOWN BARRIERS TO THE IMPORTATION OF GOODS INTO CHINA HAS TO BE WORKED ON AND HARD BUT FAR MORE IMPORTANT IS CREATING A LEGAL AND ADMINISTRATIVE FRAMEWORK TO ENABLE A FOREIGNER TO DO BUSINESS IN CHINA AS A PARTNER LAWS TODAY ARE OFTEN UNENFORCED SOMETIMES EVEN UNPUBLISHED THERE IS NEARLY NO PROTECTION FOR A LICENSOR OR MINORITY PARTNER AND OFTEN LITTLE RESPECT FOR INTELLECTUAL PROPERTY RIGHTS A TRADE POLICY WITH CHINA MUST ESTABLISH AND SAFEGUARD ACCESS TO PARTNERSHIP ALL THAT SAID THE BIGGEST MARKET OPPORTUNITIES FOR FOREIGNERS IN A FASTGROWING CHINA ARE NOT IN MANUFACTURING BUT IN SERVICES CONSIDER FOR INSTANCE EDUCATION DESPITE A LITERACY RATE OF 73 CHINA'S UNIVERSITY SYSTEM IS ONE OF THE WORLD'S MOST BACKWARD AND UNABLE TO SUPPORT SUSTAINED ECONOMIC GROWTH THERE ARE BARELY 15 MILLION COLLEGE STUDENTS IN CHINA A PROPORTION TO POPULATION SMALLER THAN AMERICA'S A HUNDRED YEARS AGO EVEN INDIA WITH A LITERACY RATE ABOUT HALF THAT OF CHINA HAS PROPORTIONATELY NEARLY FOUR TIMES AS MANY UNIVERSITY STUDENTS WORSE STILL MOST CHINESE UNIVERSITY EDUCATIONS PREPARE STUDENTS FOR BUREAUCRATIC CAREERS THAT PROVE MORE USEFUL FOR PREVENTING OTHERS FROM DOING THAN FOR GETTING THINGS DONE UNLESS THIS CHANGES AND CHANGES FAST CHINA'S GROWTH WILL BE ABORTED BY A SHORTAGE OF ENGINEERS AND CHEMISTS STATISTICIANS AND ACCOUNTANTS PHYSICIANS AND NURSES MANAGERS AND TEACHERS IN A SIMILAR FIX 40 YEARS AGO SOUTH KOREA SENT THOUSANDS OF ITS YOUNG PEOPLE TO US COLLEGES FOR TRAINING THEY THEN CREATED THE KOREAN MIRACLE WHICH TRANSFORMED A WARRAVAGED RURAL COUNTRY OF PROFOUND POVERTY INTO ONE OF THE FOUR TIGERS IN LESS THAN 30 YEARS BUT CHINA'S EDUCATION PROBLEM WILL NOT BE ALLEVIATED BY DISPATCHING 40000 STUDENTS ABROAD EVERY YEAR AS IT DOES NOW WHAT IS NEEDED IS A MASSIVE AND IMMEDIATE OVERHAUL OF THE COUNTRY'S EDUCATIONAL SYSTEM A JOB THAT CAN BE DONE ONLY BY LARGESCALE OUTSIDE SERVICE CONTRACTORS WHO DESIGN PLAN AND SET UP THE NEEDED EDUCATIONAL INSTITUTIONS QUALIFIED SUPPLIERS OF SUCH SERVICES DO EXIST THE ENGLISH POLYTECHNICS FOR INSTANCE ARE WELL TRAINED IN SUCH ENDEAVORS AS ARE MANY AMERICAN UNIVERSITIES AND COLLEGES THAT GENERALLY PROVIDE EDUCATIONAL CONTRACT SERVICES AS A CHARITABLE ACTIVITY SUCH GENEROSITY HOWEVER IGNORES A POTENTIAL MARKET IF SUCH VENTURES ARE ORGANIZED AND PROFESSIONALLY RUN THERE IS MONEY TO BE MADE A NUMBER OF AMERICAN COLLEGES ALREADY HAVE BRANCHES IN JAPAN AND IT IS NOT INCONCEIVABLE THAT HIGHER EDUCATION WILL ONE DAY BECOME AMERICA'S BIGGEST EXPORT TO CHINA AND THE SOURCE OF MAJOR EXPORT EARNINGS HEALTH CARE OFFERS SIMILAR OPPORTUNITIES MAO'S FLAWED VISION OF A CHINA CARED FOR BY BAREFOOT DOCTORS IS AS MUCH A TRAVESTY TODAY AS IT WAS 30 YEARS AGO WHAT IS NEEDED ARE EXPERIENCED AND THAT MEANS FOREIGN CONTRACTORS WHO PLAN DESIGN BUILD AND MANAGE HEALTHCARE FACILITIES AND TRAIN MEDICAL STAFF THE NEEDED HOSPITALS COULD BE BUILT QUITE FAST THE AMERICAN MILITARY'S FIELD HOSPITALS DEVELOPED OVER THE PAST 30 YEARS AND TESTED IN THE IRAQ WAR PROVIDE A PROTOTYPE FINANCIAL SERVICES THE CIRCULATORY SYSTEM OF A MODERN SOCIETY PROVIDE YET ANOTHER MAJOR MARKET OPPORTUNITY CHINESE FINANCIAL SERVICES ARE IN WORSE SHAPE THAN EITHER HIGHER EDUCATION OR HEALTH CARE SIMPLY PUT CHINA HAS A VERY HIGH SAVINGS RATE BUT NO WAY TO PUT THE MONEY TO PRODUCTIVE USE IT LACKS THE LEGAL STRUCTURES FOR A FINANCIAL INDUSTRY ITS FINANCIAL INSTITUTIONS ARE PRIMITIVE AND ITS PERSONNEL POORLY TRAINED AN INFUSION OF FOREIGN COMMERCIAL AND INVESTMENT BANKS THRIFTS INSURANCE COMPANIES MUTUAL FUNDS AND THE RELIABLE ECONOMIC AND BUSINESS DATA THEY PROVIDE WOULD HELP DEVELOP A SYSTEM THAT THE CHINESE COULD NOT POSSIBLY DEVELOP BY THEMSELVES AT LEAST NOT TO THE EXTENT THEY NEED TO IN THE TIME THEY HAVE WHAT ELSE DOES CHINA NEED IT NEEDS TELECOMMUNICATIONS AND INFORMATION SERVICES ON A MASSIVE SCALE THE NEED IS SO GREAT AND CHINA IS SO FAR BEHIND THAT IT WILL HAVE TO BYPASS A CENTURY OF WESTERN TECHNOLOGY AND LEAP DIRECTLY INTO THE MORE MODERN WIRELESS FORMS OF TELECOMMUNICATIONS SHORTWAVE TELEPHONE TRANSMISSION BEAMED DIRECTLY INTO URBAN HOMES MICROWAVE AND SATELLITE TRANSMISSION TO SPAN THE ENORMOUS DISTANCES IN THE COUNTRYSIDE THE SAME APPLIES TO CHINA'S LAST MAJOR DEVELOPMENT NEED TRANSPORTATION CHINA IS BLESSED WITH EXCELLENT NATURAL HARBORS BUT FEW ARE WELL ENOUGH DEVELOPED TO HANDLE MUCH TRAFFIC OR CARGO AND THE FEW THAT ARE LACK ROADS AND RAILWAYS TO MOVE GOODS TO THE INTERIOR ALMOST SEVEN DECADES HAVE PASSED SINCE NEW RAILWAY LINES WERE BUILT AND MANY OF THOSE ARE NARROWGAUGE AND SINGLETRACK HAVE OBSOLETE SWITCHING YARDS AND STILL RUN ON STEAM THE MEASURE OF SUCCESS IN TRADE RELATIONS WITH CHINA IS THUS SELLING SERVICES RATHER THAN SELLING GOODS THIS IS SURELY NOT FREE TRADE BUT NO MATTER HOW DESIRABLE IT MIGHT BE FREE TRADE IS NOT A POSSIBLE POLICY FOR CHINA AT LEAST NOT UNTIL THE ENORMOUS SURPLUS POPULATION FROM THE FARMS HAS BEEN ABSORBED INTO URBAN SOCIETY AND URBAN JOBS A SERVICEFOCUSED TRADE POLICY WITH CHINA WILL BE CRITICIZED ESPECIALLY BY TRADE UNIONISTS FOR NOT CREATING JOBS BUT THIS IS YESTERDAY'S ARGUMENT IN ALL DEVELOPED COUNTRIES THE MAJORITY OF JOBS ESPECIALLY OF WELLPAID JOBS ARE PRECISELY IN THOSE INDUSTRIES THAT WOULD BENEFIT THE MOST FROM A SUCCESSFUL SERVICEFOCUSED TRADE POLICY ENGINEERING DESIGN HEALTH CARE EDUCATION MANAGEMENT TRAINING AND SO ON WHAT REALLY MATTERS IS THAT THESE SERVICE AREAS ARE THE ONES WHERE THE EMERGENCE OF CHINA AS A MAJOR ECONOMIC POWER CREATES OPPORTUNITIES THEY ARE WHERE THE MARKETS ARE MR DRUCKER IS A PROFESSOR OF SOCIAL SCIENCES AT THE CLAREMONT GRADUATE SCHOOL IN CALIFORNIA 9303030050 930303 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS BLOCKED UN EVACUATIONS AMID REPORTS OF KILLINGS UN OFFICIALS SAID SERBS MASSACRED CIVILIANS AND PREVENTED THE EVACUATION OF 1500 SICK AND WOUNDED PEOPLE FROM A MUSLIM ENCLAVE IN EASTERN BOSNIA THE SERBS WERE PLUNDERING KILLING AND BURNING A UN SPOKESWOMAN CHARGED ADDING THAT SERB TANKS WERE RUMBLING THROUGH THE RUINS OF VILLAGES WHERE US PLANES DROPPED FOOD THE DAY BEFORE SOME 10000 PEOPLE IN THE VICINITY OF CERSKA AND NEIGHBORING SREBRENICA FLED INTO THE MOUNTAINS ACCORDING TO THE UN OFFICIALS BASING THEIR INFORMATION ON HAM RADIO DISPATCHES BOSNIAN RADIO REPORTED 500 CIVILIANS KILLED AND ABOUT 15 VILLAGES SET ABLAZE SINCE SUNDAY DEFENSE SECRETARY ASPIN SAID THE US MAY TEMPORARILY HALT ITS RELIEF AIRDROPS INTO BOSNIA EARLIER IN THE DAY RUSSIA ANNOUNCED IT WOULD PARTICIPATE IN THE AMERICAN AIRLIFT FEDERAL OFFICIALS ENCOUNTERED PROBLEMS IN THE WORLD TRADE CENTER BOMBING CASE AND THEY INDICATED THE NEW YORK INVESTIGATION MAY TAKE MONTHS TO COMPLETE SETBACKS INCLUDE VIDEOTAPES WHOSE QUALITY IS SO POOR THAT MAY NOT SHOW AS HAD BEEN HOPED A SUSPICIOUS VEHICLE ENTERING AN UNDERGROUND GARAGE THE SUPREME COURT RULED THAT STATES HAVE BROAD LATITUDE TO DESIGN MINORITYDOMINATED VOTING DISTRICTS THE VICTORS IN THE HIGH COURT'S UNANIMOUS RULING WERE REPUBLICANS FROM OHIO WHO HAD REVISED THE STATE'S ELECTIVE MAP AFTER THE 1990 CENSUS TO FORM FIVE DISTRICTS DOMINATED BY MINORITIES PRIMARILY BLACKS AN ARMED RELIGIOUS CULT LEADER SAID HE WOULD SURRENDER TO END A SIEGE AT THE SECT'S COMPOUND IN WACO TEXAS THAT RESULTED IN AT LEAST SIX SHOOTING DEATHS SUNDAY BUT HE FAILED TO COME OUT AND THE STANDOFF WITH FEDERAL AUTHORITIES CONTINUED ONE SOURCE SAID THE DEATH TOLL WAS AT LEAST 14 TEXAS BILLIONAIRE PEROT INJECTED HIMSELF INTO THE DEBATE OVER CLINTON'S ECONOMIC PLAN SAYING NEW PUBLIC SPENDING WILL CREATE ONLY TEMPORARY JOBS AT A TIME WHEN THE NATION IS TRILLIONS OF DOLLARS IN DEBT THE COMMENTS BY PEROT WHO APPEARED BEFORE A HOUSESENATE PANEL REFLECTED A HARDER TONE THAN IN THE PAST ANTIYELTSIN LAWMAKERS PLEDGED A BIG FIGHT AGAINST START II AS HEARINGS BEGAN ON THE USRUSSIAN NUCLEARARMSREDUCTION PACT FOREIGN MINISTER KOZYREV WARNED THAT FAILURE TO RATIFY THE ACCORD WOULD MEAN A RETURN TO A POLICY OF CONFRONTATION WITH THE US AND RUSSIA'S UNILATERAL NUCLEAR SURRENDER PRESIDENT YELTSIN ADDRESSED HIS POLITICAL ALLIES PRIOR TO AN EXPECTED SHOWDOWN WITH HARDLINERS NEXT WEEK SAYING HE WAS WILLING TO TAKE EXTREME STEPS TO SAVE HIS REFORMS YELTSIN URGED THE GATHERING OF REFORMISTS TO FORGE TIES WITH OTHER POLITICAL GROUPS IN ORDER TO KEEP HIS PROGRAMS ALIVE US ENVOYS IN THE MIDEAST MAINTAINED UNTIL RECENTLY A VARIETY OF CONTACTS WITH THE MUSLIM FUNDAMENTALIST GROUP HAMAS WHICH THE STATE DEPARTMENT IS LINKING WITH TERRORISM IN A REPORT TO BE ISSUED NEXT MONTH A DEPARTMENT SPOKESMAN SAID THE US EMBASSY IN JORDAN HAS BEEN INSTRUCTED NOT TO CONTINUE THOSE CONTACTS PRESIDENT CLINTON HAS AGREED TO SET A DEADLINE FOR THE RETURN TO POWER OF OUSTED HAITIAN LEADER ARISTIDE TWO FORMER HAITIAN CABINET MEMBERS SAID BUT A WHITE HOUSE OFFICIAL DENIED ANY SUGGESTION THAT THERE WAS A PLEDGE TO SET A DEADLINE CLINTON IS DUE TO MEET THIS MONTH WITH ARISTIDE WHO WAS OVERTHROWN IN SEPTEMBER 1991 ECONOMIC SANCTIONS WON'T HALT HUMANRIGHTS ABUSES BY CUBA'S COMMUNIST GOVERNMENT A UN REPORT SAID THE AUTHOR OF THE REPORT A SWEDISH DIPLOMAT SAID THE SANCTIONS WILL ONLY PROLONG ABUSES AS HAVANA AUTHORITIES TRY TO SILENCE DISCONTENT AMID WORSENING LIVING CONDITIONS THE REPORT NAMED 51 DISSIDENTS JAILED AS OF JANUARY INDEPENDENT SLOVAKIA SWORE IN ITS FIRST PRESIDENT MICHAL KOVAC WHO PROMISED TO PROTECT THE NEW COUNTRY'S HUNGARIAN MINORITY REFERRING TO A DISPUTE WITH ETHNIC HUNGARIANS OVER LANGUAGE AND CULTURAL RIGHTS THE 62YEAROLD ECONOMIST VOWED TO STRIVE SO THAT OUR POLICY TOWARD NATIONAL MINORITIES MEETS EUROPE'S MOST STRINGENT CRITERIA RIVAL AFGHAN REBEL LEADERS AGREED TO A CEASEFIRE IN KABUL AND SAID THEY WOULD MOVE THEIR ARTILLERY OUT OF RANGE OF AFGHANISTAN'S CAPITAL PAKISTANI OFFICIALS ANNOUNCED AFTER TALKS IN ISLAMABAD 9303030049 930303 REVIEW & OUTLOOK EDITORIAL ASIDES CLINTON'S CAKE BOY THIS IS REALLY UNFAIR BILL CLINTON GOES UP TO CAPITOL HILL FOR A VISIT CHOWS DOWN WITH THE REPUBLICANS AND NOW THEY'RE MAKING A BIG POLITICAL METAPHOR OUT OF IT FIRST HE STOPPED AT THE HOUSE TAKING A BIRTHDAY CAKE FOR GOP LEADER BOB MICHEL OF COURSE THE PRESIDENT HAD A PIECE OF CAKE TOO THEN HE WENT OVER TO SEE THE SENATE REPUBLICANS WHERE THEY ALL LUNCHED ON BIG MACS NEEDLESS TO SAY THE EVERHEARTLESS PRESS IS RESURRECTING THE METAPHOR ABOUT HOW CONGRESS IS PLANNING TO PASS THE EASY CLINTON STIMULUS PACKAGE AHEAD OF THE SPENDING CUTS THOUGH FOR OUR PART THAT LOOKS A LOT LIKE HAVING DESSERT AHEAD OF AN AIRFILLED SOUFFLE STILL SUCH EATING HABITS WE NOTICE THAT IN ANOTHER PART OF TOWN YESTERDAY MR CLINTON'S FDA WAS APPROVING A HOME KIT FOR TESTING YOUR OWN CHOLESTEROL LEVEL WHAT WITH ALL THE CAKE BEING WASHED DOWN BY BIG MACS MAYBE DR KESSLER SHOULD SHIP A CHOLESTEROLMONITORING KIT OVER TO THE WHITE HOUSE 9303030048 930303 COMMODITIES WHEAT LIVESTOCK PRICES JUMP ON NEWS OF RUSSIA LOBBYING US FOR RECORD 1 BILLION IN FOOD AID BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US WHEAT AND LIVESTOCK PRICES JUMPED IN THE WAKE OF REPORTS THAT RUSSIA IS ASKING THE CLINTON ADMINISTRATION FOR A RECORD 1 BILLION FOOD AID PACKAGE US GRAIN INDUSTRY EXECUTIVES AND TRADERS HAVE BEEN SPECULATING FOR SEVERAL DAYS THAT AGRICULTURE SECRETARY MIKE ESPY IS TRYING TO FASHION A HUGE PACKAGE UNDER THE FOOD FOR PROGRESS PROGRAM TO EASE THE CREDIT CRISIS BLOCKING US FARM EXPORTS TO RUSSIA THE AGRICULTURE DEPARTMENT HAS BEEN TIGHTLIPPED ABOUT ITS PLANS BUT SEN BOB DOLE R KAN TOLD REPORTERS YESTERDAY THAT A DELEGATION OF RUSSIAN OFFICIALS STUMPING WASHINGTON FOR AID IS ASKING FOR A 1 BILLION PACKAGE IT IS FAR FROM CERTAIN THE TYPE OR MAGNITUDE OF AID THE WHITE HOUSE MIGHT EVENTUALLY ARRANGE INDEED AN AGRICULTURE DEPARTMENT SPOKESMAN SAID LATE YESTERDAY THAT THE 1 BILLION FIGURE IS PROBABLY OVERSTATING THINGS HOWEVER THE SPOKESMAN WOULDN'T ELABORATE ON THE SIZE OF THE PROGRAM THE ADMINISTRATION IS CONSIDERING NOTHING HAS BEEN DECIDED AT THIS POINT HE SAID US WHEAT PRICES ROSE AFTER SEN DOLE'S COMMENTS ON THE REASONING THAT MOSCOW WOULD QUICKLY USE ANY AID PACKAGE TO IMPORT THAT CROP DANIEL W BASSE DIRECTOR OF MARKET RESEARCH AT CHICAGOBASED AGRESOURCE CO SAID HE CALCULATES THAT 1 BILLION IN AID WOULD ALLOW MOSCOW TO IMPORT ROUGHLY 27 MILLION METRIC TONS OF WHEAT AND 25 MILLION METRIC TONS OF CORN AMONG OTHER FARM COMMODITIES IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MAY DELIVERY ROSE 55 CENTS A BUSHEL TO SETTLE AT 340 RUSSIA IS NORMALLY ONE OF THE BIGGEST IMPORTERS OF US WHEAT BUT SHIPMENTS HAVE EVAPORATED SINCE MOSCOW BEGAN DEFAULTING ON BANK LOANS IT USED TO IMPORT FARM COMMODITIES RUSSIA HAS MISSED 4155 MILLION IN LOAN PAYMENTS SINCE NOVEMBER ACCORDING TO THE AGRICULTURE DEPARTMENT US HOG FUTURES PRICES ROSE ON SPECULATION THAT ANY AID PACKAGE WOULD CLEAR THE WAY FOR A LONGAWAITED SHIPMENT OF US PORK TO THE FORMER SOVIET UNION RUSSIA'S DEBT PROBLEMS HAVE PREVENTED IT FROM TAKING ADVANTAGE OF A US PACKAGE OF CREDIT GUARANTEES AND SUBSIDIES INVOLVING UP TO 45000 METRIC TONS OF PORK IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR JUNE DELIVERY ROSE 08 CENT A POUND TO SETTLE AT A LIFEOFCONTRACT HIGH OF 5135 PRICES OF SEVERAL PORK BELLY FUTURES CONTRACTS ROSE THEIR DAILY PERMISSIBLE LIMIT OF TWO CENTS A POUND MEANWHILE TRADING AT NEW YORK'S COMMODITY FUTURES EXCHANGES SLOWLY CONTINUED RETURNING TO NORMAL IN THE WAKE OF THE EXPLOSION FRIDAY AT THE WORLD TRADE CENTER VOLUME WAS THIN AT FOUR EXCHANGES WHERE TRADERS ARE OPERATING UNDER ABBREVIATED TRADING SESSIONS A FIFTH NEW YORK EXCHANGE THE NEW YORK FUTURES EXCHANGE RETURNED TO ITS REGULAR TRADING SCHEDULE A SPOKESMAN FOR SEN DOLE SAID IT ISN'T CLEAR WHETHER THE DELEGATION INTENDS ANY AID PACKAGE TO BE USED BY JUST RUSSIA OR THE OTHER FORMER SOVIET REPUBLICS AS WELL US GRAIN TRADERS ARE SPECULATING THAT THE CLINTON ADMINISTRATION WOULD PROBABLY OFFER ANY AID TO RUSSIA UNDER THE FOOD FOR PROGRESS PROGRAM WHICH HAS BEEN PRIMARILY AIMED AT SUPPLYING SURPLUS US FARM COMMODITIES TO DEVELOPING COUNTRIES A 1 BILLION FOOD AID PACKAGE WOULD BE THE MOST EXPENSIVE EVER EXTENDED BY THE US GOVERNMENT THE BIGGEST SO FAR WAS A 540 MILLION PACKAGE TO INDIA IN 1966 UNDER THE PUBLIC LAW 480 PROGRAM INDIA RECEIVED MILLIONS OF METRIC TONS OF US WHEAT AN OFFER OF DIRECT FOOD AID TO RUSSIA WOULD BE A BIG SHIFT FOR THE US GOVERNMENT INSTEAD OF DONATING FOOD THE AGRICULTURE DEPARTMENT SINCE DECEMBER 1990 HAS EXTENDED ROUGHLY 5 BILLION IN CREDIT GUARANTEES TO MOSCOW UNDER THIS PROGRAM THE AGRICULTURE DEPARTMENT PROMISES TO MAKE GOOD ON THREEYEAR GRAIN LOANS IF MOSCOW IS UNABLE RUSSIA WAS SUSPENDED FROM THE US CREDIT GUARANTEE PROGRAM WHEN IT BEGAN TO DEFAULT ON LOAN PAYMENTS IN NOVEMBER THE VAST NUMBER OF PAYMENTS THAT RUSSIA HAS MISSED SO FAR INVOLVE THE 375 BILLION IN LOANS GENERATED BY THE FORMER SOVIET UNION US GRAIN TRADERS ARE SPECULATING THAT ANY AID PACKAGE WOULD BE DESIGNED TO KEEP US FARM COMMODITIES FLOWING WHILE MOSCOW ATTEMPTS TO RESTRUCTURE ITS DEBT IT ISN'T CLEAR HOW TIGHT GRAIN SUPPLIES ARE IN RUSSIA ALTHOUGH THE COLLAPSING ECONOMY THERE REPORTEDLY IS MAKING IT DIFFICULT FOR MOSCOW TO ACQUIRE GRAIN FROM RUSSIAN FARMERS AS WELL AS FROM FORMER SOVIET REPUBLICS THAT TRADITIONALLY SUPPLIED IT IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES PRICES FELL DURING YESTERDAY'S THREEHOUR TRADING SESSION ON THE NEW YORK MERCANTILE EXCHANGE THE APRIL CRUDE OIL CONTRACT LOST 13 CENTS A BARREL TO SETTLE AT 2047 GASOLINE FOR APRIL DELIVERY WAS 026 CENT A GALLON LOWER AT 5834 CENTS HEATING OIL AND NATURALGAS FUTURES BOTH SUFFERED BECAUSE OF THE PROMISE OF WARMER WEATHER ACROSS THE US APRIL HEATING OIL LOST 040 CENT A GALLON TO SETTLE AT 5765 CENTS WHILE APRIL NATURALGAS CONTRACTS FELL 29 CENTS TO CLOSE AT 1827 PER MILLION BRITISH THERMAL UNITS A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS TRADING DURING THE ABBREVIATED SESSION REMAINED EXTREMELY LIGHT MANY MARKET PLAYERS HAVE KEPT TO THE SIDELINES SINCE THE EXCHANGE SHORTENED ITS HOURS AFTER LAST FRIDAY'S BOMBING AT THE WORLD TRADE CENTER WHERE THE EXCHANGE IS LOCATED TODAY THE MERC IS EXPECTED TO INCREASE THE TRADING SESSION TO FOUR HOURS MANY PETROLEUM MARKET WATCHERS SAY THE RECENT TIGHT TRADING RANGE WOULD BE HAPPENING EVEN IF TRADING HOURS WERE LONGER THERE HASN'T BEEN ENERGYRELATED DEVELOPMENTS TO MOVE PRICES PRECIOUS METALS GOLD AND SILVER FUTURES PRICES SETTLED HIGHER IN NEW YORK IN ABRIDGED TRADING ON THE COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY CLOSED 120 HIGHER AT 33050 AN OUNCE AMID A WEAKER DOLLAR GOLD AND THE DOLLAR TEND TO MOVE INVERSELY ANALYSTS SAID TECHNICAL FACTORS WERE THE PRIMARY FORCES PUSHING GOLD HIGHER SILVER FOR MAY DELIVERY JUMPED FIVE CENTS TO 3587 AN OUNCE ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE WHICH ALSO KEPT ITS TRADING ABBREVIATED TRADERS SAW A RARE DIVERGENCE IN THE FUTURES PRICES OF PLATINUM AND PALLADIUM TWO PRECIOUS METALS USED EXTENSIVELY IN THE PRODUCTION OF CATALYTIC CONVERTERS PLATINUM FUTURES DROPPED SHARPLY AND PALLADIUM FUTURES ROSE AFTER ALLIEDSIGNAL INC SAID IT HAD DEVELOPED A NEW CATALYTIC CONVERTER USING PALLADIUM ONLY PLATINUM FOR APRIL DELIVERY SKIDDED 480 TO 341 AN OUNCE WHILE PALLADIUM FOR JUNE DELIVERY SHOT UP 6 TO 10770 AN OUNCE SOME ANALYSTS CAUTIONED ABOUT BECOMING OVERLY EXCITED ABOUT A NEW PALLADIUMONLY CATALYTIC DEVICE THE PROSPECT OF A MAJOR SHIFT FROM PLATINUM IS NOT PARTICULARLY STRONG SAID WILLIAM O'NEILL A SENIOR ANALYST WITH MERRILL LYNCH COFFEE COFFEE FUTURES CLIMBED 145 CENTS TO CLOSE AT 6440 CENTS A POUND IN ABBREVIATED TRADING ON THE COFFEE SUGAR & COCOA EXCHANGE IN NEW YORK ANALYSTS SAID TECHNICAL FACTORS HELPED THE ACTIVELY TRADED MAY CONTRACT THEY NOTED HOWEVER THAT COFFEE FUTURES HAVE BEEN WEAK IN RECENT WEEKS AND THAT PRICES MAY RETREAT TO RECENT LOWS OF 59 CENTS A POUND ON THE MAY CONTRACT 9303030047 930303 BUSINESS BRIEF WEAN INC OFFER TO SWAP NOTES FAILS RESTRUCTURING STILL SOUGHT WEAN INC SAID ITS OFFER TO EXCHANGE ITS 55 CONVERTIBLE SUBORDINATED NOTES DUE MONDAY FOR 8 NOTES DUE 2008 EXPIRED THE PITTSBURGH COMPANY HAD HOPED TO RESTRUCTURE ITS DEBT WITH THE NOTE EXCHANGE BUT CANCELED THE OFFER BECAUSE FEWER THAN 90 OF THE HOLDERS TENDERED THEIR NOTES WEAN SAID IT WILL RETURN ALL NOTES THAT HAD BEEN TENDERED ABOUT 12 MILLION PRINCIPAL AMOUNT OF THE 55 NOTES IS OUTSTANDING THE NOTES WERE DUE MONDAY BUT WEAN FAILED TO REDEEM THEM CITING WEAK DEMAND FOR ITS METAL FINISHING AND PROCESSING PRODUCTS WEAN ALSO FAILED TO MAKE ABOUT 331000 IN INTEREST PAYMENTS DUE ON THE 55 NOTES CHAIRMAN RJ WEAN III SAID WE ARE PURSUING AND EVALUATING OTHER ALTERNATIVES FOR RESTRUCTURING OUR DEBT WHEN ASKED ABOUT ASSET SALES MR WEAN DECLINED TO COMMENT 9303030046 930303 FOREIGN EXCHANGE DOLLAR ENDS LOWER ON DOUBTS ON TIMING OF DECLINE IN GERMAN INTEREST RATES BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK DOUBTS ABOUT JUST HOW SOON GERMAN INTEREST RATES WILL FALL CONSPIRED WITH A REBOUND IN THE YEN AND SOME DISAPPOINTING NEWS ON THE US ECONOMY TO SEND THE DOLLAR SKIDDING BUT DEALERS SAID THE DOLLAR FOUND GOOD BUYING AROUND THE DAY'S LOWS INDICATING INVESTORS STILL ARE CONFIDENT THE US CURRENCY EVENTUALLY IS HEADED HIGHER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16395 MARKS DOWN FROM 16546 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11760 YEN OFF FROM 11874 YEN STERLING WAS TRADING AT 14490 UP FROM 14390 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11734 YEN AND AT 16392 MARKS IT LOOKS LIKE JUST A CORRECTION SAID PETER DEMBINSKI A SENIOR TRADER AT BANK JULIUS BAER & CO IN NEW YORK IT DOESN'T LOOK LIKE THE DOLLAR IS GOING TO FALL OUT OF BED HERE BUT DEALERS SAID THE HOPES FOR A CUT IN GERMAN INTEREST RATES FROM TOMORROW'S MEETING OF THE BUNDESBANK'S CENTRAL BANK COUNCIL WHICH HAD CARRIED THE DOLLAR HIGHER MONDAY DISSIPATED YESTERDAY IN ITS REGULAR MONEY MARKET OPERATION THE GERMAN CENTRAL BANK LEFT RATES ESSENTIALLY UNCHANGED THE MARKET INTERPRETED IT AS A SIGN THERE WOULD BE LESS OF A CHANCE OF AN EASE TOMORROW SAID CHARLES SPENCE FOREIGN EXCHANGE MANAGER AT STANDARD CHARTERED BANK OF LOS ANGELES THE BUNDESBANK'S OFFICIAL INTEREST RATES THE DISCOUNT RATE NOW AT 8 AND THE LOMBARD RATE AT 9 BRACKET THE MONEY MARKET RATE AFTER THE BUNDESBANK CUT THE OFFICIAL RATES FEB 4 OBSERVERS EXPECTED A DROP IN THE MONEY MARKET RATE TO PRECEDE THE NEXT CUT YESTERDAY'S OPERATION THUS DIMMED HOPES OF AN EASING DEALERS SAID DENNIS PETTIT FOREIGN EXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK SAID THE DOLLAR ALSO SUFFERED AS WAVES OF TECHNICALLY DRIVEN SELLING PUSHED IT LOWER AGAINST THE YEN THE DOLLAR WAS SOLD OFF VERY HARD HE SAID THERE WAS LITTLE NEWS TO SPUR THE SELLOFF DEALERS SAID BUT DEALERS SAID SPECULATORS APPEARED TO BE UNLOADING DOLLAR HOLDINGS SETTING OFF BROADER SELLING AS THE DOLLAR FELL MR PETTIT SAID NAGGING FEARS OF OFFICIAL ACTION TO BOOST THE YEN AS A WAY TO REDUCE JAPAN'S TRADE SURPLUS LEFT THE DOLLAR VULNERABLE FURTHER DARKENING SENTIMENT TOWARD THE DOLLAR WERE TWO DISCOURAGING US ECONOMIC REPORTS DEALERS SAID THE COMMERCE DEPARTMENT SAID SALES OF NEW SINGLEFAMILY HOUSES SHOWED THE LARGEST DROP IN 11 YEARS FALLING 138 IN JANUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 561000 UNITS ANALYSTS SURVEYED BY APDOW JONES HAD BEEN LOOKING FOR A 18 DECLINE ON AVERAGE MR PETTIT CALLED THE REPORT VERY VERY DISAPPOINTING DEALERS SAID THE NEWS THAT THE INDEX OF LEADING ECONOMIC INDICATORS CLIMBED 01 IN JANUARY WHILE BETTER THAN ANALYSTS' AVERAGE EXPECTATIONS OF A 02 DECLINE DID LITTLE TO LIFT THE GLOOM CAUSED BY THE HOUSING DATA IT REMINDS US OF THE MIXED NATURE OF THE RECOVERY SAID MR PETTIT BUT PLAYERS NOTED THAT THE DOLLAR FOUND GOOD DEMAND AROUND THE DAY'S LOW OF 16355 MARKS FROM INVESTORS STILL CONVINCED THE DOLLAR'S MEDIUMTERM TRAJECTORY WILL BE UPWARD 9303030045 930303 BUSINESS BRIEF SAFEWAY INC GROCERY STORE CHAIN TO CUT 250 ADMINISTRATIVE POSITIONS IN A COSTCUTTING MOVE SAFEWAY INC SAID IT CUT ABOUT 250 OF THE 1100 FULLTIME JOBS IN ITS ADMINISTRATIVE OFFICES THE OAKLAND CALIF GROCERY STORE CHAIN SAID MORE THAN HALF OF THOSE POSITIONS WERE EITHER UNFILLED AS A RESULT OF A HIRING FREEZE INITIATED LAST YEAR OR VACATED BY EMPLOYEES WHO CHOSE SEVERANCE PACKAGES ABOUT 40 OF THE POSITIONS WERE HELD BY OUTSIDE CONTRACTORS SAFEWAY SAID COSTS ASSOCIATED WITH THE LAYOFFS HAVE ALREADY BEEN ACCOUNTED FOR AS PART OF A 138 MILLION RESTRUCTURING CHARGE THE COMPANY TOOK IN ITS FOURTH QUARTER ENDED JAN 2 A SPOKESMAN WOULDN'T SAY HOW MUCH OF THAT CHARGE WAS SPECIFICALLY RELATED TO THESE CUTBACKS HE SAID THE STAFF REDUCTION IS EXPECTED TO SAVE THE COMPANY BETWEEN 15 MILLION AND 20 MILLION A YEAR SAFEWAY EMPLOYS ABOUT 104000 PEOPLE 9303030044 930303 INTERNATIONAL WORLD WIRE BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION STEPPING UP ITS CAMPAIGN AGAINST STEEP US DUTIES ON EUROPEAN STEEL EXPORTS ASKED THE US FOR TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE EC WANTS TO SET OUT ITS OBJECTIONS TO PRELIMINARY DUMPING DUTIES IMPOSED ON SEVEN EC COUNTRIES IN JANUARY THE US IS EXPECTED TO AGREE TO THE REQUEST AS SIMILAR TALKS HAVE BEEN HELD ON COUNTERVAILING DUTIES ON EUROPEAN STEEL EXPORTS THE EC QUESTIONS THE METHODS USED BY THE US IN DECIDING ON BOTH THE DUMPING AND COUNTERVAILING DUTIES WHICH PENALIZE STEEL THAT THE US BELIEVES HAS BEEN SOLD AT UNFAIRLY LOW PRICES OR HAS BEEN SUBSIDIZED IF THE EC ISN'T SATISFIED BY THE US RESPONSES IT CAN ASK GATT TO RULE ON WHETHER THE US VIOLATED THE WORLD TRADE BODY'S SUBSIDY AND ANTIDUMPING CODES THE EC MOVE AIMS TO PRESSURE THE CLINTON ADMINISTRATION FOR WHAT THE EC SEES AS US PROTECTIONISM AND TO DELAY FINAL IMPOSITION OF THE DUTIES IN JUNE A EUROPEAN COMMUNITY BAN ON UNFAIR CLAUSES IN CONTRACTS WAS ADOPTED BY CONSUMER MINISTERS THE MEASURE TO TAKE EFFECT IN 1995 IS AN ATTEMPT TO HAVE SELLERS OF GOODS AND SERVICES TREAT CUSTOMERS FAIRLY IT SETS A STANDARD FOR CONTRACTS FOR GENERAL USE OR THOSE RECOMMENDED BY TRADE GROUPS THE BAN WON'T APPLY TO CONTRACTS BETWEEN INDIVIDUALS OR PREVENT EC STATES FROM SETTING TOUGHER CONSUMERPROTECTION STANDARDS A SWISS ACCOUNTING STANDARDS GROUP RELEASED DISCLOSURE GUIDELINES DESIGNED TO CHANGE COMPANIES' SECRETIVE ACCOUNTING PRACTICES THE GUIDELINES BY THE FOUNDATION FOR ACCOUNTING AND REPORTING RECOMMENDATIONS DISCOURAGE COMPANIES FROM MAKING THEIR FINANCIAL REPORTING DIFFICULT TO DECIPHER A SORE POINT WITH INSTITUTIONAL INVESTORS THE REVISIONS AMONG OTHER THINGS WOULD END PRACTICES OF IMPROVING RESULTS BY DRAWING FROM RESERVES OR LIMITING DIVIDENDS IN GOOD YEARS BY TRANSFERRING SUMS TO RESERVES CHINA AIRLINES' TWO NEW MD11 JETS MADE BY MCDONNELL DOUGLAS CORP ARE BACK IN SERVICE AFTER ENGINE REPAIRS THE TAIWAN CONSUMERS FOUNDATION LAST MONTH PRESSURED THE AIRLINE AND A CONSUMER BOYCOTT WAS ORGANIZED AFTER THE THREEENGINE PLANES EXPERIENCED NINE ENGINE ELECTRICAL AND OTHER PROBLEMS IN THREE MONTHS DISRUPTING FLIGHTS ON THE TAIPEIANCHORAGENEW YORK ROUTE TAIWAN AND US AVIATION AGENCIES APPROVED MODIFICATIONS OF THE ENGINECOMPRESSOR FAN BLADES ALSO PERFORMED FOR AIRLINES FLYING BOEING CO AND AIRBUS INDUSTRIE JETS WIH THE SAME ENGINES MADE BY THE PRATT & WHITNEY UNIT OF UNITED TECHNOLOGIES CORP THAILAND AWARDED OFFSHORE BANKING LICENSES TO 47 DOMESTIC AND FOREIGN COMPANIES FOR OPERATIONS UNDER A NEW SET OF TAX INCENTIVES AIMED AT ATTRACTING MORE FINANCIAL BUSINESS TO COMPETE WITH HONG KONG AND SINGAPORE THE MOVE ALSO WILL INCREASE BANK AND FINANCE COMPANY RIVALRY IN LENDING TO CORPORATIONS WHICH MAY HELP PUSH RATES DOWN OFFSHORE UNITS MAY LEND IN THAILAND AND GLOBALLY AND ENGAGE IN FOREIGNEXCHANGE TRADING JAPAN AND THE EUROPEAN COMMUNITY REACHED CONSENSUS THAT EUROPEAN AUTO DEMAND WILL DROP THIS YEAR BUT THEY FAILED TO AGREE ON JAPANESE EXPORT LIMITS TO THE EC THE TWO SIDES DISAGREED ON HOW MUCH DEMAND WILL SHRINK A KEY FACTOR IN CALCULATING THE JAPANESE SHIPMENTS UNDER A 1991 ACCORD THE EC PREDICTS AUTO SALES THIS YEAR WILL DROP 5 TWICE ITS PREVIOUS ESTIMATE THE ACCORD RENEGOTIATED ANNUALLY CURBS JAPANESE AUTO EXPORTS TO EUROPE UNTIL 1999 ALLOWING PRODUCERS TO PREPARE FOR ADDED COMPETITION JAPAN LAST YEAR HELD 11 OF THE EC AUTO MARKET ITALY'S CABINET APPROVED CREATION OF NONGOVERNMENTAL PENSION FUNDS TO EASE GROWING DEMANDS ON THE STATE'S DEFICITRIDDEN SOCIAL SECURITY SYSTEM UNDER THE DECREE LAW SUBJECT TO PARLIAMENTARY REVIEW FUNDS MAY BE SET UP FOR PRIVATE AND PUBLICSECTOR WORKERS AND SELFEMPLOYED PROFESSIONALS INDIVIDUAL EMPLOYEES MAY DEDUCT FROM THEIR TAXES CONTRIBUTIONS UP TO 25 MILLION LIRE 1590 A YEAR COMPANY OUTLAYS LIMITED TO 10 OF AN INDIVIDUAL'S PAY WILL BE FULLY DEDUCTIBLE THE PRIVATE FUNDS WILL EVENTUALLY REPLACE LUMPSUM RETIREMENT PAYOUTS NOW MADE IN ADDITION TO REGULAR SOCIAL SECURITY PAYMENTS THE PENSION FUNDS ARE EXPECTED TO FUNNEL FRESH CASH INTO MARKETS IN THE LONG TERM THEY MUST BE MANAGED BY INSURERS SECURITIES HOUSES OR REAL ESTATE COMPANIES ALSO BENEFITING THOSE SECTORS RESTRICTIONS ON FUNDS' INVESTMENTS IN STOCKS COULD BE GOOD NEWS FOR GOVERNMENT SECURITIES PUSHING RATES DOWN AND IN TURN HELPING COMPANIES AND THE STOCK MARKETS IN VIETNAM WHERE THE BIGGEST BANKNOTE WAS WORTH JUST LESS THAN A DOLLAR SHOPPERS NO LONGER WILL HAVE TO CARRY BIG WADS OF CASH TWO NEW BILLS WERE ISSUED IN DENOMINATIONS OF 20000 AND 50000 DONG TO SUPPLEMENT NOTES RANGING FROM 100 TO 10000 DONG 1 EQUALS 10510 DONG THE EUROPEAN COMMUNITY MOVED TO HELP FIGHT POLLUTION IN THE BLACK SEA BY EARMARKING 23 MILLION FOR PROJECTS IN BULGARIA GEORGIA ROMANIA RUSSIA AND UKRAINE POLLUTION HAS HURT FISHING STOCKS COASTAL RESORTS AND PUBLIC HEALTH 9303030043 930303 CORPORATE FOCUS COX ENVISIONS GLOBAL PIPELINE FOR TV AND PHONE SIGNALS BRITISH CABLE STAKE IS A STEP PROGRAMMING OPPORTUNITIES ARE NEEDED NEXT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL COX CABLE COMMUNICATIONS WILL GO FAR TO BUILD A GLOBAL PIPELINE FOR TELEVISION AND TELEPHONE SIGNALS JUST YESTERDAY THE COMPANY CONFIRMED THAT IT WILL JOIN SOUTHWESTERN BELL CORP IN DEVELOPING BRITISH CABLE SYSTEMS IN COMING MONTHS COX CABLE'S PARENT COMPANY CLOSELY HELD COX ENTERPRISES INC MAY SHOW HOW FAR IT WILL GO TO ACQUIRE PROGRAMMING TO FILL THAT PIPELINE WE'RE CONCEPTUALLY INTERESTED IN BEING INVOLVED IN MORE PROGRAMMING AND WE'RE ACTIVELY WORKING ON IT SAYS JOHN DILLON THE COMPANY'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE SAID THAT COULD MEAN LAUNCHING NEW CABLE NETWORKS OR BUYING INTO EXISTING ONES COX OFFICIALS SAID THEY ARE LOOKING PARTICULARLY HARD FOR INTERNATIONAL PROGRAMMING OPPORTUNITIES THAT WOULD BE A SHIFT OF SORTS FOR COX WHICH HASN'T SPENT AS MUCH MONEY AS OTHERS IN THE CABLE INDUSTRY ON ACQUIRING PROGRAMMING BUT INSTEAD HAS FOCUSED ON BUILDING SOME OF THE MOST TECHNOLOGICALLY ADVANCED HARDWARE IN THE BUSINESS BY TAKING A 25 STAKE IN SOUTHWESTERN BELL'S UK CABLE SYSTEMS COX WILL BE ABLE TO HELP BUILD A FIBEROPTICS NETWORK EVEN MORE ELABORATE THAN WHAT IT HAS IN THE US STARTED BY FORMER OHIO GOV JAMES COX AS A NEWSPAPER CHAIN THE COMPANY CONTROLLED BY HIS DAUGHTERS ANNE COX CHAMBERS AND BARBARA COX ANTHONY HAS SHOWN A WILLINGNESS TO ACQUIRE BUSINESSES THAT DON'T FIT NARROW DEFINITIONS OF A MEDIA CONCERN IN ADDITION TO NEWSPAPERS SUCH AS THE ATLANTA CONSTITUTION SEVEN TELEVISION STATIONS 14 RADIO STATIONS AND THE FIFTHLARGEST GROUP OF CABLE SYSTEMS IN THE US COX HAS THE COUNTRY'S LARGEST AUTOAUCTION COMPANY THAT BUSINESS HELPED COX WEATHER THE RECENT RECESSION AND COX HAS VIEWED ITS CABLE SYSTEMS AS MORE THAN CONDUITS FOR TELEVISION SIGNALS IN THE EARLY 1980S IT TRIED TO OFFER LOCAL TELEPHONE AND DATA TRANSMISSION SERVICES THROUGH ITS COPPER CABLETELEVISION WIRES IN OMAHA NEB COX EVENTUALLY PULLED THE PLUG ON THAT EFFORT BUT DIDN'T LOSE ITS ENTHUSIASM WHEN IT CAME TIME TO UPGRADE ITS CABLE SYSTEMS COX BOUGHT INTO FIBER OPTICS MORE HEAVILY THAN OTHER CABLE OPERATORS FIGURING FIBER'S RELIABILITY AND CAPACITY WOULD ALLOW COX TO OFFER TELEPHONE SERVICES I DID A PAPER 2 1/2 YEARS AGO THAT LAID OUT ALL THE DIFFERENT OPTIONS AND WHAT THEY WOULD COST AND WE PICKED THE MOST AGGRESSIVE ONE WE COULD RECALLS RICHARD MUELLER VICE PRESIDENT OF OPERATIONS AND ENGINEERING FOR COX CABLE COX BUILDS ITS CABLE SYSTEMS SO THAT SEPARATE FIBEROPTIC LINES REACH CLUSTERS OF 250 HOMES THAT MEANS COX WILL SOON BE IN POSITION TO SEND SPECIALIZED ADVERTISING TO DIFFERENT NEIGHBORHOODS OR EVEN TO TRANSMIT A PROGRAM LIKE A MOVIE ON DEMAND TO A PARTICULAR HOUSE BUT COX ALSO INSTALLED EXTRA FIBER TO SERVE COMPETITORS WHO WISHED TO BYPASS LOCAL TELEPHONE COMPANIES AND LAST YEAR THE COMPANY BOUGHT A MAJORITY STAKE IN TELEPORT COMMUNICATIONS GROUP INC THE NATION'S LARGEST ALTERNATIVEACCESS PROVIDER COX ALSO TOOK THE LEAD AMONG CABLE OPERATORS IN TESTING PERSONAL COMMUNICATIONS SYSTEMS WHICH USE CABLE LINES AND WIRELESS TELEPHONES TO PROCESS TELEPHONE CALLS IN METROPOLITAN AREAS THAT HAS PUT COX IN THE THICK OF BATTLES AGAINST TELEPHONE COMPANIES IN GEORGIA FOR EXAMPLE COX SURPRISED BELLSOUTH CORP EXECUTIVES BY CHALLENGING THE UTILITY'S SCHEDULE FOR REPLACING PHONE LINES IN A 1989 RATE CASE IN TEXAS A COX NEWSPAPER THE AUSTIN AMERICANSTATESMAN IS HELPING LEAD A LOBBYING FIGHT AGAINST AN EFFORT BY SOUTHWESTERN BELL TO FREE ITSELF OF SOME STATE REGULATION TELEPORT NOTES SOUTHWESTERN BELL HAS EMERGED AS ONE OF ITS FIERCEST OPPONENTS STILL THE UK DEAL ILLUSTRATES COX'S ABILITY TO BE BOTH FLEXIBLE AND OPPORTUNISTIC COX AND SOUTHWESTERN BELL SAID THEY WILL ACTUALLY SHARE MANAGEMENT IN THE UK WHERE FREER REGULATIONS ALLOW TELEVISION AND TELEPHONE SERVICES TO BE DELIVERED ON ONE SYSTEM IF IT IT WORKS WE COULD LOOK AT THINGS IN OTHER PARTS OF THE WORLD SAID MICHAEL TURNER PRESIDENT OF SOUTHWESTERN BELL INTERNATIONAL HOLDINGS COX AND SOUTHWESTERN BELL WHICH SAID THEY EXPECT A FINAL DEAL BY NEXT MONTH DIDN'T DISCLOSE FINANCIAL TERMS BUT OFFICIALS OF BOTH COMPANIES CONFIRMED AN EARLIER ESTIMATE THAT COX'S INVESTMENT COULD BE IN THE 300 MILLION RANGE DEPENDING ON WHETHER COX OPTS TO INCREASE ITS STAKE IN THE UK CABLE SYSTEMS BY GAINING ACCESS TO A POTENTIAL 12 MILLION NEW SUBSCRIBERS COX MAY PUT ITSELF IN A BETTER POSITION TO ACQUIRE PROGRAMMING STAKES SOMETHING COX HAS DONE MUCH LESS THAN SOME OTHER BIG CABLE OPERATORS LIKE VIACOM INC AND TELECOMMUNICATIONS INC PROGRAMMING IS BECOMING INCREASINGLY IMPORTANT TO COMPANIES LIKE COX AS THEY FACE COMPETITION FROM TELEPHONE COMPANIES AND OTHERS OVER VIDEO SERVICES COX HAS POSITIONS IN THE DISCOVERY CHANNEL AND THE E ENTERTAINMENT NETWORK BUT LITTLE ELSE ON THE CABLE SIDE IN 1987 COX PASSED UP AN OPPORTUNITY TO BUY INTO TURNER BROADCASTING SYSTEM INC WHICH OWNS CABLE NEWS NETWORK AND THE WTBS SUPERSTATION BECAUSE COX WOULD HAVE HAD TO SELL ITS ATLANTA TELEVISION STATION WSB TO SATISFY CROSSOWNERSHIP RESTRICTIONS COX HAS TRIED TO INCREASE ITS EXPERTISE AS A PROGRAMMER IN RECENT YEARS THE COMPANY WHICH ALREADY PRODUCES SHOWS SUCH AS STAR SEARCH AND LIFESTYLES OF THE RICH AND FAMOUS AGREED EARLIER THIS YEAR TO BUY RYSHER ENTERTAINMENT A LOS ANGELES SYNDICATION COMPANY THAT HAS SEVERAL NEW SERIES IN PRODUCTION LAST YEAR COX ALSO TOOK A 35 STAKE IN UK GOLD A BRITISH TELEVISION NETWORK THAT MINES THE ARCHIVES OF THE BRITISH BROADCASTING CORP AND THAMES TELEVISION ANALYSTS SAY COX HAS THE FINANCIAL RESOURCES TO MAKE ADDITIONAL INVESTMENTS THEY ARE MUCH LESS LEVERAGED THAN OTHER CABLE COMPANIES SAYS BERGE AYVAZIAN A COMMUNICATIONS SPECIALIST WITH THE YANKEE GROUP IN BOSTON COX HAD REVENUE OF 25 BILLION LAST YEAR COX IS ALSO KNOWN FOR BEING CONSERVATIVE THOUGH AJIT M DALVI COX CABLE'S SENIOR VICE PRESIDENT FOR MARKETING AND ENGINEERING SAYS THE COST OF PROGRAMMING HAS TO BE PREDICTABLE MAKING SOMETHING LIKE A SPORTS CHANNEL UNLIKELY AND THE DISTRIBUTION NEEDS TO BE SECURED VERY QUICKLY AND THE NICHE WE'RE ADDRESSING NEEDS TO BE WELLDEFINED OPPORTUNITIES TO BUY INTO ESTABLISHED CABLE NETWORKS ARE SCARCE NOW THOUGH FEDERAL REGULATIONS EXPECTED THIS SPRING MAY FORCE LARGER CABLE OPERATORS TO SHED SOME PROGRAMMING ASSETS OTHERWISE COX COULD START ITS OWN PROGRAMMING SERVICES I WOULD LOVE IT FOR THE CABLE PEOPLE TO COME TO US AND SAY DEVELOP PROGRAMMING FOR US' SAYS NICHOLAS D TRIGONY PRESIDENT OF COX'S BROADCASTING DIVISION HE ADDS WITHIN THE LAST COUPLE YEARS THERE HAS BEEN A GREATER REALIZATION THROUGHOUT THE ENTIRE COMPANY THAT WE WANT TO BE BIGGER IN SOFTWARE 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 9303030042 930303 LEISURE & ARTS BOOKSHELF DOES THE FUTURE LOOK JUST LIKE SWITZERLAND BY MICHAEL LEDEEN IT'S ALWAYS FUN TO READ JOHN LUKACS A LIVELY PRACTITIONER OF THE DOUR SPORT OF DUMPING ON AMERICA FROM THE GIDDY HEIGHTS OF EUROPEAN CULTURE IN THE END OF THE TWENTIETH CENTURY AND THE END OF THE MODERN AGE TICKNOR & FIELDS 291 PAGES 2195 HIS LATEST OUTPOURING EXPOSITION IS INTERLACED WITH GREAT THOUGHTS FROM HIS EARLIER WORKS AND EXCERPTS FROM HIS DIARIES NOW HE'S IN BUDAPEST NOW AT DINNER AT THE WHITE HOUSE NOW IN LITTLE ITALIAN AND GERMAN CEMETERIES ALONG THE WAY HE ANALYZES WHAT HE CALLS THE END OF THE RUSSIAN EMPIRE YES RUSSIAN FOR HIM COMMUNISM WAS JUST A RHETORICAL VENEER ON TOP OF A SOLID FOUNDATION OF RUSSIAN NATIONALISM AND ANNOUNCES THE BEGINNING OF THE END OF THE MODERN AGE THE 20TH CENTURY IS OVER BECAUSE FASCISM AND COMMUNISM HAVE BOTH FALLEN AND THE TRUE DRIVING FORCE OF THE MODERN AGENATIONALISM HAS REASSERTED ITSELF AND ALTHOUGH MR LUKACS IS WORRIED ABOUT WHERE ALL THIS NATIONALISM WILL TAKE US HE EXPECTS IT WILL PROBABLY PETER OUT AND GIVE WAY TO SOMETHING ELSE IN HIS CHEERIER MOMENTS THIS SOMETHING ELSE LOOKS LIKE SWITZERLAND IN HIS GLOOMIER MOODS HE EVOKES ADOLF HITLER'S SUPERNATIONALIST STATE LIKE ALL THOUGHTFUL ADVOCATES OF ARISTOCRACY HE QUITE RIGHTLY BEMOANS THE RISE OF BARBARIANS BOTH FIGURATIVELY VIA THE IMPOSITION OF AIRLINE ENGLISH ON TRADITIONAL LANGUAGES AND LITERALLY MOBS AND HOODLUMS IN THE STREETS THE WORLD OVER THE DIAGNOSIS IS FAMILIAR ALTHOUGH RARELY TOLD WITH MR LUKACS'S ENERGY AND SOME OF IT IS EVEN TRUE THE FALL OF THE SOVIET EMPIRE IS CERTAINLY A MAJOR EVENT ALTHOUGH ITS FULL SIGNIFICANCE REMAINS TO BE SEEN WHAT OFTEN GOES HAYWIRE WITH MR LUKACS IS HIS NOTION OF HOW WE GOT HERE AND WHAT IT MEANS HE'S TERRIBLY ANNOYED WHENEVER SOMEBODY SUGGESTS TO HIM THAT AMERICAN BEHAVIOR WAS DECISIVE IN THE FALL OF THE RUSSIAN EMPIRE AND HE'S PARTICULARLY ENRAGED AT THE VERY THOUGHT THAT RONALD REAGAN'S POLICIES HELPED BRING IT DOWN IN ORDER TO GAINSAY THE EVIDENCE MR LUKACS CONJURES UP A NET DECEPTION BY ARGUING THAT COMMUNISM NEVER REALLY AMOUNTED TO ANYTHING IN THE FIRST PLACE THAT STALIN ONLY CARED ABOUT RUSSIAN NATIONAL OBJECTIVES NOT ABOUT THE ADVANCE OF COMMUNISM ABROAD AND THAT INDEED COMMUNISM WAS SO WEAK THAT IT FINALLY DESTROYED ITS HOME BASE RATHER THAN ITS INTENDED VICTIMS SO HE HAS CASTRO ONLY FIGURING OUT HE WAS A COMMUNIST AFTER HIS SEIZURE OF POWER IN HAVANA THOUGH HE'D ACTUALLY MADE THAT COMMITMENT WELL BEFORE HE HAS THE HUGE ITALIAN COMMUNIST PARTY SHRINKING YEAR AFTER YEAR IN REALITY IT WAS RELENTLESSLY GROWING AND ON THE DOORSTEPS OF POWER UNTIL THE SOVIET COLLAPSE AND HE HAS THE SOVIETS' RETREAT FROM EASTERN EUROPE BEGINNING IN THE LATE 1940S WHEN THEY WERE UNABLE TO BRING TITO UNDER TOTAL CONTROL TRY THAT ONE OUT ON YOUR POLISH FRIENDS IT FOLLOWS FROM ALL THIS THAT WE WERE QUITE SILLY TO WORRY ABOUT THE COMMUNISTS SINCE THEIR MOST STARTLING ACTS OF INTERVENTION WERE MADE BECAUSE OF PURPOSES THAT WERE DEFENSIVE THEIR APPETITE FOR MORE FOREIGN EXPANSION AND CONQUEST WAS NOT INSATIABLE ALL THIS DRIVES MR LUKACS INTO THE CAMP OF THE LEFTWING REVISIONISTS BECAUSE WE DIDN'T UNDERSTAND THAT COMMUNISM WASN'T A THREAT TO US WE BUILT THE MILITARYINDUSTRIALNATIONALSECURITY STATE THAT EISENHOWER WARNED US ABOUT AND THEREBY PROLONGED THE COLD WAR FAR LONGER THAN NECESSARY THUS THE SELFPROCLAIMED MAN OF THE RIGHT MEETS THE OLD COMRADE FROM THE LEFT AT THE BOUNDARIES OF PSEUDOHISTORY AS USUAL IF IT'S BAD NEWS WE'RE PROBABLY RESPONSIBLE IF IT'S GOOD WE COULDN'T POSSIBLY HAVE DONE IT AS MR LUKACS GOES FULL BORE AT THE AMERICAN LOVE OF MONEY TECHNOLOGY AND PROGRESS AND THE POPULAR DEMOCRACY THAT SUPPORTS THESE PASSIONS QUOTING HIS FAVORITE AUTHOR HIMSELF HE INTONES TWO DANGEROUS CIRCUMSTANCES THREATEN THE WORLD ONE IS THE INSTITUTIONALIZED PRESSURE FOR MATERIAL AND ECONOMIC 'GROWTH'CONTRARY TO STABILITY AND THREATENING NATURE ITSELF THE OTHER IS THE POPULIST INCLINATIONS OF NATIONALISM BUT EVEN MORE THAN THE ANNOYING ERRORS OF FACT AND HIS EMBRACE OF A DEMON THEORY OF AMERICAN HISTORY THAT HAS BEEN REJECTED BY THE RUSSIANS THEMSELVES THE SILLIEST THING ABOUT THIS BOOK IS ITS APPROACH TO HISTORY FOR MR LUKACS EVERYTHING THAT HAPPENED WAS PREORDAINED THINGS HAPPENED BECAUSE THEY WERE SUPPOSED TO HAPPEN RATHER THAN BECAUSE LIVING PEOPLE MADE FOOLS OR HEROES OF THEMSELVES THUS HE FINDS IT PROFOUNDLY SIGNIFICANT THAT HITLER COULD ONLY HAVE BEEN DEFEATED BY AN ALLIANCE OF RUSSIA ENGLAND AND AMERICA THEREBY SHOWING HOW POWERFUL HITLER REALLY WAS BUT THIS TELLS US AS MUCH ABOUT THE FOLLY AND COWARDICE OF THE CHAMBERLAINS AND THE ISOLATION OF THE US AS IT DOES ABOUT THE MIGHT OF THE THIRD REICH THERE WAS NO INEVITABILITY ABOUT HITLER'S CONQUEST OF EUROPE HE NEEDED THE APPEASERS ON THE ONE OCCASION THAT SOMEBODY STOOD AGAINST HIM HE PROVED TO BE A TYPICAL BULLY WHEN ITALY IMAGINE CALLED THE FUHRER'S BLUFF IN 1934 HE BACKED DOWN MR LEDEEN IS A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON DC 9303030041 930303 WHICH KILT TO WEAR IS NOW A BITTER ISSUE IN BRITISH REGIMENTS PROUD COLORFUL ARMY UNITS FACE UNGLORIOUS MERGERS AN AFFRONT TO TRADITIONS BY CRAIG FORMAN STAFF REPORTER OF THE WALL STREET JOURNAL EDINBURGH SCOTLAND THE BRITISH MILITARY IS UP IN ARMS OUR REGIMENTAL PRIDE AND HISTORY IS TOO IMPORTANT TO BE DISPOSED OF THIS WAY GRUMBLES LT GEN SIR DAVID YOUNG HIS GLISTENING MEDALS AQUIVER IN A ROOM CROWDED WITH CHOLERIC OFFICERS LT GEN SIR JOHN MACMILLAN PIPES IN YOU AMERICANS HAVE TRIED TO IMPORT THE REGIMENTAL SYSTEM SEVERAL TIMES AND HERE WE ARE THROWING IT AWAY WHAT HAS THE GENERALS SO ANGRY IS THE BRITISH GOVERNMENT'S PLAN TO SLASH THE ARMY BY NEARLY A QUARTER TO ROUGHLY 120000 SOLDIERS BY MERGING OR ELIMINATING A DOZEN HISTORYLADEN REGIMENTS BY THE DECADE'S END WHAT WAS ONCE THE FIERCEST FIGHTING FORCE ON EARTH WILL FIT COMFORTABLY INSIDE A BRITISH SPORTS STADIUM THE PAIN IS RIPPLING THROUGH THE RANKS AS THE SUN SETS ON MANY OF THE ARMY'S MOST COLORFUL REGIMENTS IT IS A SAD END FOR UNITS SUCH AS THE GORDON HIGHLANDERS WHOSE KILTED BAGPIPERS HAVE RALLIED BRITISH FORCES FROM WATERLOO TO KUWAIT THOUGH GORDONS HAVE FOUGHT WITH HONOR FROM LUCKNOW TO YPRES ON THE SANDS OF EL ALAMEIN AND NORMANDY THEIR THIN RED LINE IS PROVING NO MATCH FOR THE PINK SLIP I JOINED THE ARMY TO BE IN THE GORDONS IT WAS SOMETHING TO BE PROUD OF SAYS INFANTRYMAN BILL FORSYTH WHOSE FAMILY LIKE MANY OTHERS HAS SERVED IN THE REGIMENT FOR DECADES ADDS HIS PLATOON LEADER CAPT BOB DEERE AFTER ALL THOSE HISTORIC BATTLES WE'RE DRIFTING INTO AMALGAMATION INSTEAD OF GOING OUT IN A BLAZE OF GLORY THE RETRENCHMENT AFFECTS VIRTUALLY EVERY ASPECT OF THE ARMY EVEN THE ELITE GUARDS REGIMENTS WHICH ESCORT THE QUEEN AT STATE CEREMONIES THE NUMBER OF GUARDSMEN AT THE QUEEN'S BIRTHDAY PARADE WILL BE HALVED THE 40ODD REGIMENTAL BANDS ARE ALSO IN THE BUDGET CUTTERS' SIGHTS FEWER THAN HALF ARE EXPECTED TO SURVIVE THE QUEEN HERSELF COLONELINCHIEF OF SEVERAL REGIMENTS IS TRYING TO LIMIT THE CUTS THROUGH BEHINDTHESCENES LOBBYING PARLIAMENTARY COMMITTEES ARE HOLDING HEARINGS AND SAVE OUR REGIMENTS GROUPS ARE ORGANIZING PETITIONS AND OF COURSE MARCHING AROUND THE COUNTRY BRITISH REGIMENTS STILL ARE MUSTERED FROM PARTICULAR REGIONS AND HAVE STRONG TIES TO THOSE COMMUNITIES THE GORDONS COME FROM ABERDEENSHIRE IN NORTHEASTERN SCOTLAND WHERE IN 1794 THE DUKE OF GORDON'S BEAUTIFUL WIFE IS SAID TO HAVE LURED THE INITIAL RECRUITS WITH A SHILLING THAT THEY TOOK FROM HER LIPS WITH A KISS THE REGIMENTS REMAIN ONE OF THE FEW INSTITUTIONS WHERE BRITONS TRANSCEND THE DIVISIONS OF CLASS AMONG THE GORDONS SOLDIERS RANGE FROM THE WORKINGCLASS OFFSPRING OF ABERDEEN OIL ROUGHNECKS TO THE GENTRY OF THE COUNTRYSIDE MERGING REGIMENTS ENDANGERS BRITAIN'S SOCIAL FABRIC SAYS JOHN KEEGAN THE DAILY TELEGRAPH'S DEFENSE EDITOR LOCAL PATRIOTISMS ARE THE BEDROCK OF OUR NATIONAL ETHOS AND BRIDGE DIFFERENCES OF CLASS PARTY RELIGION AND OCCUPATION MR KEEGAN WROTE RECENTLY WHILE THE ARMY HAS MERGED REGIMENTS BEFORE THE PROCESS IS FRAUGHT WITH EMOTION REGIMENTS HAVE BAGFULS OF MILITARY SOUVENIRS THEY HAVE DIFFERENT UNIFORMS AND TRADITIONS THERE ARE REGIMENTAL MASCOTS GOATS RAMS TURTLES AND JERBOAS BETTER KNOWN AS THE DESERT RAT TO BE SELECTED AND WHAT DO YOU DO WITH THE TONS OF REGIMENTAL SILVER THE GORDONS ARE DOING BATTLE WITH THE QUEEN'S OWN HIGHLANDERS WITH WHOM THEY ARE MERGING NEXT YEAR OVER EVERYTHING FROM THE COLORS OF THEIR KILTS AND THE WORDING OF THE REGIMENTAL TOAST TO WHETHER TO CALL THEIR COMBINED BAND THE DRUMS & PIPES AS THE GORDONS DO OR THE PIPES & DRUMS WHICH IS QUEEN'S OWN STYLE THE GORDONS' OFFICERS' MESS IS FILLED WITH HUNDREDS OF HISTORICAL OBJECTS PAINTINGS SILVER AND FURNITURE COMMEMORATING SERVICE ON THREE CONTINENTS THE CHERISHED ITEMS INCLUDE AN INTRICATELY CARVED WOODEN HIGHBOY COMMISSIONED BY AN OFFICER IN THE AFGHAN WARS A CENTURY AGO WHICH HAS SERVED AS THE OFFICERS' MAILBOX EVER SINCE THAT'S COMING WITH US WHEN WE MERGE THAT'S FOR CERTAIN DECLARES MAJ DAVID BARRON IN THE BASEMENT A LOCKED ROOM IS FILLED WITH SILVERWARE HUNDREDS OF THOUSANDS OF DOLLARS' WORTH OF ALE MUGS SOUP TUREENS PUNCH BOWLS AND PORT TROLLEYS SHAPED LIKE ARTILLERY WAGONS THE PROBLEM IS THE QUEEN'S OWN HAS JUST AS MUCH STUFF IN ITS OFFICERS' MESS THAT IT HOLDS DEAR THERE WON'T BE ENOUGH ROOM FOR EVERYTHING MERGERS GENERATE A LOT OF BITTER FEELING SAYS CAPT DAVID GRANT A LONE QUEEN'S OWN HIGHLANDER ON DUTY WITH THE GORDONS INDEED THOUGH THE CAMERON AND SEAFORTH HIGHLANDERS REGIMENTS AMALGAMATED INTO THE QUEEN'S OWN MORE THAN A GENERATION AGO THEY STILL HAVEN'T BEEN ABLE TO SELECT A SINGLE TARTAN ON ANY GIVEN DAY SOME OFFICERS WEAR THE WHITE AND GREEN MACKENZIE PATTERN WHILE OTHERS ARE DRESSED IN THE RED CAMERON TARTAN WHEN THE QUEEN'S OWN MERGE WITH THE YELLOW GREEN AND BLUEKILTED GORDONS NEXT YEAR THE KALEIDOSCOPE WILL BECOME EVEN MORE COLORFUL BUT THE RULES GOVERNING WHEN EACH TARTAN WILL BE WORN STILL MUST BE DECIDED WE'RE FIGHTING OVER EVERYTHING IT'S HARD TO SEE SOME OF US WORKING TOGETHER SAYS A GORDON OFFICER NAMING AN AMALGAMATED REGIMENT CAN ALSO CAUSE BIG PROBLEMS CONSIDER THE UNION OF THE ONCEDISTINGUISHED WORCESTERSHIRE AND SHERWOOD FORESTERS REGIMENTS TODAY THE MERGED UNIT IS KNOWN AS THE WOOFERS REGIMENTAL VETERANS HATE THEIR NICKNAME THE OLD WOOFERS THE MERGER WAS PAINFUL SAYS COL JOHN LOWLES THE WOOFERS' REGIMENTAL SECRETARY YOU CONSIDER THE REGIMENT YOUR FAMILY AND WHEN A FAMILY COMES TO AN END IT IS SAD MOREOVER THE BEST OF EACH REGIMENT SEEMS TO HAVE VANISHED SAYS BRIAN OWEN TRUSTEE OF THE REGIMENTAL MUSEUM WHEN REGIMENTS AMALGAMATE THEY TEND TO LOSE THEIR IDENTITIES THE LINKS TO THE PAST ARE LOST THE IDEA OF LOSING THEIR IDENTITY APPALLS THE GORDONS WHO SAY THEIR PREDECESSORS DIDN'T DIE IN BATTLE ONLY TO SEE THE REGIMENT ELIMINATED BY NUMBERCRUNCHING BUREAUCRATS THE REGIMENT'S MEMBERS POINT TO THE BATTLE OF WATERLOO WHERE THEIR FORERUNNERS INSPIRED BY THEIR PIPERS' MELODIES CHARGED THROUGH NAPOLEON'S LINES TO HELP WIN THE BATTLE AND IT WAS GORDONS SOLDIERS WHO HELPED PUT DOWN THE SEPOY MUTINY IN INDIA OF COURSE OFFICERS PLEDGE TO DO THEIR BEST DESPITE THE CUTS THERE IS AN UNDERSTANDABLE SADNESS BUT THE INITIAL SHOCK HAS GIVEN WAY TO A PRAGMATIC REALIZATION THAT WE PAY ATTENTION TO OUR LAST ORDER WHICH IS TO GO AHEAD WITH THE MERGER SAYS MAJ DAVID STEWART THE GORDONS' SECONDINCOMMAND BUT IT IS CERTAIN THERE WON'T BE ENOUGH JOBS FOR EVERYONE AND SOME SOLDIERS WILL HAVE TO LOOK FOR OTHER KINDS OF WORK FORMER SOLDIERS ARE DOING WHAT THEY DO BEST MOBILIZING NEARLY 1000 PEOPLE TURNED UP IN EDINBURGH AT A RECENT RAINY DEMONSTRATION AS BAGPIPES PLAYED SCOTLAND THE BRAVE VETERANS FORMED INTO NEAT RANKS WEARING GLENGARRY BONNETS THAT SAW SERVICE IN WORLD WAR II FORMER GORDONS SLOPPED PROUDLY THROUGH PUDDLES THE CUTS ARE DIABOLICAL SAID DAVID WATSON A RETIRED PRIVATE HOWEVER MILITARY SERVICE HAS LONG BEEN A THANKLESS PURSUIT NOTES GEN MACMILLAN KIPLING HAD IT RIGHT A CENTURY AGO HE SAYS AND HE BEGINS TO RECITE FOR IT'S TOMMY THIS AN' TOMMY THAT AN' CHUCK HIM OUT THE BRUTE BUT IT'S SAVIOUR OF 'IS COUNTRY WHEN THE GUNS BEGIN TO SHOOT 9303030039 930303 NORTHWEST AIR'S UNION COALITION TO REJECT OFFER MACHINISTS PILOTS TEAMSTERS ASSERT 20 EQUITY DEAL ISN'T NEARLY SUFFICIENT BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THREE MAJOR UNIONS AT NORTHWEST AIRLINES PLAN TO REJECT THE COMPANY'S BEST OFFER ON A PACKAGE TO HELP SAVE THE TROUBLED AIRLINE AND SAY THEY MIGHT NOT EVEN MEET THE COMPANY'S MARCH 10 DEADLINE FOR A RESPONSE REPRESENTATIVES OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS THE AIR LINE PILOTS ASSOCIATION AND THE TEAMSTERS SAID SEPARATELY THAT THEY SEE THE COMPANY'S OFFER AS AT BEST A LONGDELAYED START TO NEGOTIATIONS THE THREE UNIONS SAID THEY WON'T HAVE A FORMAL STATEMENT UNTIL AFTER THEY MEET IN THE NEXT FEW DAYS WITH THREE SMALLER UNIONS IN THEIR COALITION AND EVEN THEN SOME SUGGESTED THEY DON'T VIEW MARCH 10 AS A DATE BY WHICH THEY MUST MAKE A COUNTEROFFER WE'RE GETTING THE SENSE WE'RE GETTING THE BUM'S RUSH SAID JOSEPH GUERRIERI A WASHINGTON LAWYER WHO IS ADVISING THE MACHINISTS' UNION NORTHWEST A ST PAUL MINN UNIT OF WINGS HOLDINGS INC SAID MONDAY THAT IT WOULD GIVE EMPLOYEES A 20 STAKE IN RETURN FOR 975 MILLION IN CONCESSIONS OVER THREE YEARS UNION EMPLOYEES WHO WOULD MAKE ALL BUT 92 MILLION OF THE CONCESSIONS WOULD GET THREE OF 15 BOARD SEATS WHILE THE OFFER FELL SHORT OF THE UNIONS' DEMANDS THE AIRLINE ALSO SAID THAT IT DIDN'T PLAN TO FURTHER NEGOTIATE MAJOR PORTIONS OF THE OFFER BUT INDIVIDUALS CLOSE TO THE MACHINISTS AND THE PILOTS SAID YESTERDAY THAT THE EQUITY STAKE OFFERED BY THE COMPANY IS FAR TOO LOW CONSIDERING THE SIZE OF THE CONCESSIONS AND THAT THE UNIONS WILL CONTINUE TO INSIST THAT THE AIRLINE'S LENDERS MAKE CONCESSIONS AT THE SAME TIME AS LABOR THE REACTION OF THE PILOTS AND MACHINISTS UNIONS IS CRUCIAL BECAUSE TOGETHER THEIR MEMBERS WOULD BE MAKING 776 MILLION OF THE 883 MILLION IN UNION CONCESSIONS IF NORTHWEST IS ABLE TO SETTLE SEPARATELY WITH ONE OF THOSE UNIONS IT WOULD BE A BLOW TO THE LABOR COALITION'S BARGAINING POWER THE TEAMSTERS UNION WHICH REPRESENTS FLIGHT ATTENDANTS ALSO TURNED THUMBS DOWN NORTHWEST HAS FINALLY GIVEN US A SERIOUS PROPOSAL RON CAREY TEAMSTERS PRESIDENT SAID IN A STATEMENT BUT IT IS SERIOUSLY FLAWED A NORTHWEST SPOKESMAN SAID YESTERDAY THE COMPANY BELIEVES IT HAS MADE A STRONG OFFER WE THINK IT IS AS EQUITABLE AS CAN BE HE ADDED NOTING THAT IT ALSO CONTAINS CONCESSIONS BY MANAGEMENT AND NONCONTRACT EMPLOYEES IT TOUCHES EVERYONE PROPORTIONATELY AND GIVES EVERYONE DIRECT OWNERSHIP IN THIS COMPANY SOME UNION OFFICIALS VIEWED THE NORTHWEST OFFER AS A STEP IN THE RIGHT DIRECTION PARTICULARLY BECAUSE IT CONTAINS WAYS FOR THE AIRLINE'S 40000 UNION EMPLOYEES TO HAVE A SAY IN MANAGING THE AIRLINE IN ADDITION TO THE THREE BOARD SEATS UNIONS WOULD GET A LABOR ADVISORY COMMITTEE THAT WOULD HELP CHOOSE A PRESIDENT AND REVIEW THE AIRLINE'S BUSINESS PLAN NORTHWEST BURDENED BY AN INDUSTRY SLUMP AND ABOUT 4 BILLION IN DEBT LARGELY FROM A 1989 LEVERAGED BUYOUT SAID IT WOULD HAVE TO EVALUATE OUR OPTIONS IF THE UNIONS REFUSE TO ACCEPT THE OFFER BY MARCH 10 BUT IT SAID IT HASN'T ANY PLANS TO FOLLOW OTHER AILING AIRLINES IN FILING FOR PROTECTION FROM CREDITORS UNDER BANKRUPTCY LAWS UNION OFFICIALS AND ADVISERS CONCEDED YESTERDAY THAT SUCH A FILING IS STILL POSSIBLE IF MANAGEMENT AND LABOR CAN'T AGREE BUT THEY INSISTED THAT WON'T RUSH THEM INTO A CONCESSION PACKAGE WITHOUT THE COMPANY'S LENDERS AND EQUITY HOLDERS TAKING PART SIMULTANEOUSLY EMPLOYEES HAVE 900 MILLION WORTH OF LEVERAGE TO GET NORTHWEST'S BALANCE SHEET INTO SOME REASONABLE SHAPE SAID CURT KRUSE A SPOKESMAN FOR THE PILOTS' UNION 9303030038 930303 MARKETING & MEDIA ADVANCE PUBLICATIONS TO BUY KNAPP PRICE SAID TO BE 175 MILLION NEW YORK ADVANCE PUBLICATIONS INC THE PARENT OF CONDE NAST PUBLICATIONS INC SAID IT REACHED AN AGREEMENT TO ACQUIRE KNAPP COMMUNICATIONS CORP THE TWO PRIVATELY HELD COMPANIES DID NOT DISCLOSE THE PURCHASE COST BUT PEOPLE CLOSE TO THE TRANSACTION PEGGED THE PRICE AT ABOUT 175 MILLION CLEON T KNAPP CHAIRMAN OF KNAPP COMMUNICATIONS SAID IN NOVEMBER THAT HE HOPED TO SELL THE COMPANY FOR WELL OVER 100 MILLION MORE RECENTLY INDUSTRY OFFICIALS HAD SPECULATED THAT KNAPP COMMUNICATIONS WHICH HAD 90 MILLION IN REVENUE FOR THE FISCAL YEAR ENDED JAN 31 1992 WOULD BRING 150 MILLION AT BEST LIKE MANY MAGAZINES AIMED AT AFFLUENT READERS KNAPP'S TWO TITLES ARCHITECTURAL DIGEST AND BON APPETIT HAVE SUFFERED IN RECENT YEARS FROM ADVERTISING DECLINES FOR 1992 ARCHITECTURAL DIGEST'S ADVERTISING PAGES DECLINED 10 ALTHOUGH BON APPETIT'S PAGES WHICH ALSO HAD BEEN DECLINING ROSE 6 ACCORDING TO MEDIA INDUSTRY NEWSLETTER ARCHITECTURAL DIGEST HAS REPORTED PAID CIRCULATION OF ABOUT 653000 BON APPETIT HAS POSTED ABOUT 12 MILLION BOTH MAGAZINES PRESENT A GOOD FIT FOR ADVANCE'S STABLE OF HIGHEND TITLES THROUGH CONDE NAST ADVANCE PUBLISHES THE NEW YORKER GQ VOGUE GLAMOUR AND SELF DESPITE A PREVAILING MOOD OF BACKTOBASICS CONDE NAST'S MAGAZINES HAVE DONE WELL WITH ADVERTISERS OF LUXURY CLOTHING AND HOUSEWARES ARCHITECTURAL DIGEST FOUNDED IN 1920 SPECIALIZES IN INTERIOR DESIGN AND ALSO COVERS TRAVEL BON APPETIT IS PRIMARILY A GOURMET FOOD MAGAZINE ADVANCE PUBLICATIONS SAID IT HOPES TO CLOSE THE SALE WITHIN 30 DAYS 9303030037 930303 SCIENCE IN THE LAB VIRTUAL REALITY' ISN'T A FANTASY FOR SURGEONS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL IMAGINE A SURGEON SUPERIMPOSING A 3D IMAGE ON A PATIENT AND THEN OPERATING ON THE IMAGE AND PATIENT AT THE SAME TIME EVEN MORE FUTURISTIC IMAGINE A SURGEON WALKING THROUGH THE INSIDE OF A PATIENT'S BODY THREADING BETWEEN ORGANS WITHOUT DISTURBING THEM AND PERFORMING PRECISION SURGERY WITHOUT DAMAGING SURROUNDING TISSUE THOSE ARE TWO OF THE GOALS OF A GROUP OF SURGEONS FROM BRIGHAM AND WOMEN'S HOSPITAL IN BOSTON WHO ARE WORKING WITH SCIENTISTS AT GENERAL ELECTRIC CO IN A LAB CLUTTERED WITH COMPUTERS CAMERAS VIDEO EQUIPMENT AND OTHER ELECTRONICS AT GE'S R&D CENTER IN SCHENECTADY NY THE RESEARCHERS ARE COMBINING MEDICINE WITH ADVANCED COMPUTER GRAPHICS AND THE SCIENCE OF VIRTUAL REALITY WHICH MAKES VIEWERS FEEL AS IF THEY'RE PART OF WHAT THEY'RE SEEING WITH A VISITOR SEATED BESIDE HIM WILLIAM LORENSEN A GE GRAPHICS ENGINEER MARVELS AT THE 3D IMAGE OF A VOLUNTEER'S BRAIN ON A SCREEN THE PICTURE WAS MADE BY A COMPUTER FROM TWODIMENSIONAL IMAGES OF THE BRAIN THAT WERE TAKEN IN SLICES BY GE'S MAGNETIC RESONANCE IMAGING MACHINE SEEN THROUGH A PAIR OF SPECIAL GOGGLES THAT CONVERT IMAGES INTO A STEREO FORMAT THE ILLUSION OF DEPTH IS SO REAL THAT IT'S TEMPTING TO REACH AND PAT THE FRONTAL LOBE STROKE THE OCCIPITAL LOBE OR RUN A FINGER THROUGH THE FOLDS OF THE CEREBRAL CORTEX WHAT A BEAUTIFUL PICTURE SAYS MR LORENSEN WHO'S SEEING IT FOR THE FIRST TIME AS DR RON KIKINIS A RADIOLOGIST AT BRIGHAM REMINDS A VISITOR EVERY SO OFTEN IT'S THE IMAGE OF THE ACTUAL BRAIN NOT SOME IMAGINARY REPRESENTATION MORE EXCITING THAN THE STARTLING VISUALS IS WHAT THE SCIENTISTS CAN DO WITH THEM WITH KEY STROKES ON A COMPUTER THE BRAIN ROTATES AND PIVOTS ON COMMAND WITH MORE KEY STROKES LAYERS OF THE BRAIN PEEL OFF TO REVEAL THE INSIDE PART BY PART THE CEREBRAL CORTEX THE GRAY MATTER IS STRIPPED OFF TO REVEAL THE WHOLE CAULIFLOWER SURFACE OF THE BRAIN'S WHITE MATTER UNDERNEATH THE CEREBRUM IT SLOWLY PIVOTS ON THE SCREEN NO ONE HAS SEEN THE SURFACE OF THE WHITE MATTER LIKE THIS BEFORE REMARKS DR KIKINIS MARVELING AT THE SPATIAL DETAIL WITH MORE STROKES ON THE COMPUTER KEYBOARD SECTIONS OF THE BRAIN RESPONSIBLE FOR ASSESSING VISION HEARING SPACE SENSES AND MOTION PEEL OFF ONE AT A TIME ALL THE WAY TO THE BASE OF THE BRAIN THE VIEWER HAS THE SENSATION OF TRAVELING THROUGH THE BRAIN EXAMINING EACH PARTITS FRONT BACK AND INSIDE ALONG THE WAY AS A FIRST STEP THE SURGEONS HOPE TO CONSULT SUCH IMAGES ON A SCREEN BESIDE THE OPERATING TABLE USING THEM AS A ROAD MAP TO HELP THEM MANEUVER THEIR INSTRUMENTS TO A SITE HALF THE PROBLEM IN SURGERY IS GETTING TO THE SITE SAYS DAVE ALTOBELLI A BRIGHAM BIOMEDICAL ENGINEER THE RESEARCHERS SAY IT WILL TAKE SEVERAL YEARS TO OVERCOME SOME MAJOR HURDLES BEFORE THEY TRY THE INITIAL TECHNIQUE ON PATIENTS WHILE THEY CAN NEATLY SEGMENT ONE PART OF THE BRAIN FROM ANOTHER ON THE SCREEN THE COMPUTER CAN'T YET MAKE FINE DISTINCTIONS BETWEEN MANY TISSUES OR PICK UP SMALL STRUCTURES SUCH AS NERVE TRUNKS FROM THE DATA COLLECTED BY THE IMAGING MACHINE THE RESEARCHERS ALSO WANT THE COMPUTER TO PRODUCE A SPREAD SHEET WITH SUCH INFORMATION AS SAY THE SIZE AND WEIGHT OF A TUMOR OR THE VOLUME OF THE BRAIN IN ORDER TO EXAMINE BRAIN ATROPHY AN MRI MACHINE OR A COMPUTED TOMOGRAPHY MACHINE CAN ALREADY ACQUIRE ALL THE NECESSARY DATA FROM THE BODY USING EXISTING HARDWARE AND TECHNOLOGY THE PROBLEM IS DEVELOPING THE MATHEMATICAL RECIPES OR IMAGING ALGORITHMS TO CONVERT THE TREMENDOUS AMOUNT OF DATA INTO THE DISTINCT AND COMPLEX GEOMETRIES OF THE INTERNAL ORGANS THE RESEARCHERS DESCRIBE THEIR EFFORTS AT DEVELOPING THESE MATHEMATICAL RECIPES OR CONCEPTS AS CRAFTSMANSHIP ALTHOUGH THEY HAVE DEVELOPED AND PATENTED 20 IMAGING ALGORITHMS MANY MORE WILL BE NEEDED TO REPRESENT ALL TYPES OF TISSUES FLUIDS AND OTHER TINY BODY PARTS ON THE SCREEN MOST OF MY TIME IS SPENT THINKING ABOUT RECIPES SAYS DR KIKINIS TESTING THEIR WORK TO DATE THE RESEARCHERS CHOSE EACH OTHER AS SUBJECTS RECENTLY DR KIKINIS PUT ON A TIGHT PLASTIC CAP THAT COVERED HIS ENTIRE HEAD UPON WHICH THE REST OF THE TEAM OPTICALLY PROJECTED THE IMAGE OF HIS OWN BRAIN THE TEAM THEN SKETCHED OUT ON THE CAP A SURGICAL PATHWAY THROUGH THE BRAIN'S FURROWS STEERING CLEAR OF SUCH VITAL SECTIONS AS THE MOTOR CORTEX AND SENSORY CORTEX DR ALTOBELLI HOLDS UP THE CAP WITH THE MAP FOR SURGERY AND SHOWS ON A SCREEN HOW PARTS OF DR KIKINIS'S BRAIN ARE IN SLIGHTLY DIFFERENT LOCATIONS THAN THE GENERIC PICTURE OF THE BRAIN IN AN ANATOMY BOOK THE TECHNOLOGY ALSO HAS ATTRACTED OTHERS THE GE RESEARCHERS ESTIMATE THAT A DOZEN OTHER COLLABORATIVE GROUPS INVOLVING DIAGNOSTIC EQUIPMENT MAKERS AND UNIVERSITIES ARE DEVELOPING SOFTWARE TO CONVERT MEDICAL DATA INTO 3D IMAGES THE POTENTIAL FOR SURGERY IN A VIRTUAL REALITY ENVIRONMENT ALSO PRODUCED THE INAUGURAL CONGRESS OF THE INTERNATIONAL SOCIETY FOR SIMULATION SURGERY IN TOKYO LAST YEAR THREEDIMENSIONAL IMAGES HAVE BEEN AROUND SINCE THE EARLY 1980S WHAT IS HAPPENING NOW IS THAT WE ARE GOING BEYOND THE PRETTY PICTURES SAYS DR ALTOBELLI THE GE RESEARCHERS SAY THE WORK IN THEIR LAB WILL HELP THE COMPANY INCORPORATE THE TECHNOLOGY INTO GE'S MRI AND CT MACHINES WE DIDN'T APPRECIATE BEFORE THE IMPORTANCE OF BRINGING DIAGNOSTIC INFORMATION RIGHT INTO THE OPERATING ROOM SAYS HARVEY CLINE A GE PHYSICIST AND MEMBER OF THE TEAM SURGERY HASN'T BEEN PART OF THESE MACHINES THIS COULD PROVIDE WHOLE NEW OPPORTUNITIES 9303030036 930303 ABREAST OF THE MARKET INDUSTRIAL AVERAGE TOPS 3400 MARK AS ECONOMIC DATA SPUR LATE RALLY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SOARED AS A LATEAFTERNOON RALLY SENT THE DOW JONES INDUSTRIAL AVERAGE BACK ABOVE THE 3400 MARK THE INDUSTRIALS WHICH HAVE LANGUISHED AFTER SETTING A RECORD OF 344214 ON FEB 5 SHOT UP 4512 POINTS TO 340053 STANDARD & POOR'S 500STOCK INDEX JUMPED 589 TO 44790 COMING WITHIN A FEW POINTS OF ITS ALLTIME HIGH AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 278 TO 24654 ALSO WITHIN RANGE OF ITS RECORD VOLUME ON THE BIG BOARD WAS HEAVY WITH 269640000 SHARES CHANGING HANDS UP FROM 232090000 SHARES MONDAY ADVANCING STOCKS LED DECLINERS 1273656 STOCKS STARTED THE DAY ON A WOBBLY NOTE WITH THE DOW INDUSTRIALS FALLING 10 POINTS AFTER A REPORT THAT NEWHOME SALES PLUNGED 138 IN JANUARY BUT PRICES STABILIZED AFTER ANOTHER GOVERNMENT REPORT SHOWED THAT THE WIDELY WATCHED INDEX OF LEADING ECONOMIC INDICATORS ADVANCED 01 IN JANUARY INSTEAD OF FALLING AS MANY ANALYSTS HAD EXPECTED THE REPORT COMBINED WITH DATA POINTING TO A RISE IN RETAIL SALES LAST MONTH SUGGESTED THAT THE ECONOMIC RECOVERY WAS NOT LOSING STEAM AS MANY HAD FEARED SOME ANALYSTS SUGGESTED THE POSITIVE ECONOMIC NEWS SPURRED SOME BIG INSTITUTIONAL INVESTORS TO SHIFT MORE MONEY INTO STOCKS THE BUYING WHICH STARTED IN THE FUTURES MARKETS SENT BEARISH INVESTORS RUNNING FOR COVER INVESTORS WERE BUYING EVERYTHING SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS MR SHULMAN SAID THAT MANY OF THE ECONOMICALLY SENSITIVE STOCKS PERKED UP AFTER BEING BEATEN DOWN RECENTLY AS FEARS MOUNTED THAT THE ECONOMIC RECOVERY IS SLOWING MINNESOTA MINING & MANUFACTURING JUMPED 1 5/8 TO 105 7/8 ALUMINUM CO OF AMERICA CLIMBED 7/8 TO 70 1/8 GENERAL MOTORS ROSE 7/8 TO 37 7/8 AND FORD MOTOR RACED 1 1/2 POINTS HIGHER TO 47 7/8 TECHNOLOGY STOCKS ALSO REBOUNDED COMPAQ COMPUTER GAINED 1 5/8 TO 43 1/2 AND HEWLETTPACKARD SURGED 2 TO 75 1/4 EVEN TOBACCO STOCKS REGAINED FAVOR PHILIP MORRIS SOARED 2 1/4 TO 67 1/2 AND RJR NABISCO SHARES TOPPED THE MOSTACTIVE LIST CLIMBING 5/8 TO 9 AFTER THE FOOD AND TOBACCO GIANT SAID IT WOULD SEEK SHAREHOLDER APPROVAL OF A PLAN TO CREATE A SEPARATE CLASS OF ITS COMMON STOCK TIED TO THE PERFORMANCE OF ITS WORLDWIDE FOOD BUSINESS RJR NABISCO ALSO PLANS TO PAY A DIVIDEND ON ITS EXISTING CLASS OF COMMON STOCK AND THE NEW STOCK LINKED TO ITS FOOD BUSINESS EVEN THOUGH YESTERDAY'S STOCK MARKET GAINS CAME ON THE BACK OF HEAVY VOLUME WHICH IS USUALLY CONSIDERED A SIGN OF STRENGTH BY TECHNICIANS MANY ANALYSTS WERE CAUTIOUS THE MARKET IS VERY STRETCHED SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER THE ONLY THING THAT IS HOLDING IT UP IS THAT THERE IS A LOT OF CASH AROUND MR GALLAGHER SAID STOCK PRICES HAVE BEEN HELPED BY SIGNS THAT PRESIDENT CLINTON'S ECONOMIC PLAN WILL PASS CONGRESS AND LEAD TO SOME REDUCTION IN THE DEFICIT A LOWER BUDGET DEFICIT COULD TRIGGER FURTHER INTEREST RATE DECLINES WHICH ARE GENERALLY POSITIVE FOR STOCKS BUT MR GALLAGHER SAID THAT IF MR CLINTON'S PLAN UNRAVELS THAT COULD BE THE STOCK MARKET'S UNDOING KMART CLIMBED 3/4 TO 24 3/8 THE RETAILER REPORTED THAT ITS FOURTHQUARTER EARNINGS SWELLED TO 535 MILLION OR 115 A SHARE FROM 479 MILLION OR 106 A SHARE A YEAR EARLIER OTHER RETAIL STOCKS ALSO RALLIED BENEFITING FROM A JOHNSON REDBOOK REPORT SHOWING THAT SALES AT THE NATION'S RETAILERS CLIMBED A SEASONALLY ADJUSTED 24 IN FEBRUARY FROM JANUARY WALMART STORES GAINED 1 TO 34 AND DILLARD DEPARTMENT STORES ROSE 3/4 TO 43 1/2 PALL SLUMPED 1 1/4 TO 17 5/8 THE FILTER COMPANY REPORTED MONDAY THAT NET INCOME FOR THE FISCAL SECOND QUARTER ENDED JAN 30 FELL TO THREE CENTS A SHARE AFTER A CHARGE COMPARED WITH 17 CENTS A YEAR EARLIER INVESTORS FLOCKED TO MANY STOCKS AFTER WALL STREET ANALYSTS GAVE THE COMPANIES THE THUMBSUP MOTOROLA ADDED 1 1/4 TO 58 PAINEWEBBER ANALYST JOHN LAZLO UPGRADED HIS RATING ON THE COMPANY'S STOCK TO ATTRACTIVE FROM NEUTRAL SAYING THAT THE SCARES ABOUT THE CELLULARTELEPHONE INDUSTRY HAVE SUBSIDED WITHOUT DAMAGING INDUSTRY ORDERS MANOR CARE ROSE 1 3/4 TO 22 SALOMON BROTHERS RAISED ITS INVESTMENT RATING TO BUY FROM HOLD BECAUSE OF ITS PRICE MANOR CARE WHICH OPERATES NURSING HOMES HAS BEEN DEPRESSED ON CONCERNS THAT PRESIDENT CLINTON'S HEALTH CARE REFORM PLAN WILL HURT THE COMPANY OTHER STOCKS FELL ON NEGATIVE REVIEWS FROM WALL STREET BANKAMERICA SLID 1 TO 52 1/2 DONALDSON LUFKIN & JENRETTE ANALYST THOMAS BROWN SLASHED EARNINGS ESTIMATES FOR THE WEST COASTBASED BANKING COMPANY CUTTING HIS 1994 PROJECTION TO 650 A SHARE FROM 7 AND HIS 1993 CALL TO 530 A SHARE FROM 560 KNIGHTRIDDER LOST 2 3/8 TO 57 5/8 KIDDER PEABODY DOWNGRADED THE NEWSPAPER COMPANY'S STOCK TO HOLD FROM BUY MEANWHILE DEVON ENERGY EDGED UP 7/8 TO 21 1/8 THE COMPANY'S PROFITS BALLOONED TO 731 MILLION IN THE FOURTH QUARTER FROM 105 MILLION A YEAR EARLIER TOSCO JUMPED 1 1/2 TO 22 5/8 THE COMPANY SAID MONDAY THAT IT PLANS TO SELL ITS FERTILIZER UNIT FOR ABOUT 150 MILLION CML GROUP SOARED 2 1/4 TO 33 THE SPORTSWEAR AND RECREATION PRODUCTS CONCERN SAID ITS FISCAL SECONDQUARTER PROFIT SWELLED TO 325 MILLION OR 94 CENTS A SHARE FROM 188 MILLION OR 55 CENTS A SHARE A YEAR EARLIER THE PREVIOUS YEAR'S RESULTS INCLUDE A LOSS FROM DISCONTINUED OPERATIONS 9303030035 930303 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL DONORS WOULD NEED RECEIPTS TO DEDUCT GIFTS OF 750 UNDER CLINTON'S PLAN THE TREASURY'S SUMMARY OF HIS PROPOSALS SAYS BRIEFLY THAT THEY INCLUDE TWO PROVISIONS ON CHARITABLE GIFTS FROM THE TAX BILL THAT PRESIDENT BUSH VETOED LAST NOVEMBER ONE WOULD DENY DEDUCTION OF A GIFT OF 750 OR MORE UNLESS THE FILER GOT A RECEIPT FROM THE CHARITY THE OTHER WOULD REQUIRE CHARITIES THAT PROVIDE MORE THAN TOKEN GOODS OR SERVICES IN RETURN FOR GIFTS TO TELL DONORS JUST HOW MUCH OF A GIFT IS DEDUCTIBLE MANY CHARITIES DO THESE THINGS NOW FOR DONORS FOR SOME CHARITIES THE MEASURES WOULD ADD PAPERWORK YET BOB SMUCKER OF INDEPENDENT SECTOR SAYS HE DOESN'T EXPECT CHARITIES TO OPPOSE THEM THAT IS BECAUSE THE MEASURES ARE LINKED TO SOMETHING CHARITIES DESIRE REVIVAL OF A PROVISION TO LET DONORS WHO ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX DEDUCT THE FULL MARKET VALUE OF GIFTS OF PROPERTY THAT APPRECIATES SUCH AS ART SMUCKER SAYS CHARITIES ARE VERY EXERCISED AGAINST A PROPOSAL TO MAKE PERMANENT THE LIMIT ON DEDUCTIONS BY HIGHINCOME FILERS THAT EXPIRES AFTER 1995 THE MEDICARE TAX WON'T WAIT FOR MANY EXECUTIVES TO COLLECT DEFERRED PAY CLINTON'S PROPOSAL TO REMOVE THE INCOME CEILING FROM THE MEDICARE TAX HAS SPECIAL MEANING FOR NONQUALIFIED DEFERREDPAY PLANS VOLUNTARY BONUSDEFERRAL AND SUPPLEMENTAL RETIREMENT PLANS THAT DON'T QUALIFY FOR ALL THE TAX BREAKS AVAILABLE TO RANKANDFILE RETIREMENT PLANS IN 1993 EMPLOYEES MUST PAY THE 145 MEDICARE TAX ON WAGES UP TO 135000 EMPLOYERS MATCH THE TAXES BUT THE PROPOSAL WOULD TAX ALL WAGES FOR MEDICARE STARTING NEXT YEAR FURTHERMORE SAYS JAMES CONNORS TAX COUNSEL AT MERRILL LYNCH MEDICARE TAXES ON NONQUALIFIED DEFERRED PAY ARE DUE WHEN IT IS EARNED NOT WHEN IT IS RECEIVED UNLIKE INCOME TAXES SO THE PROPOSAL WOULD MAKE EXECUTIVES PAY SUBSTANTIAL CURRENT MEDICARE TAXES ON INCOME THEY HADN'T SEEN YET AND IF INCOMETAX RATES ARE RAISED CONNORS NOTES THAT WILL MAKE EXECUTIVES WANT TO DEFER MORE INCOME UNTIL A TIME WHEN THEIR EFFECTIVE TAX RATE IS LOWER TRIMMING THE FAT MAY MEAN NO DEDUCTIONS FOR MEALS WHEN MOVING CLINTON WANTS TO CUT THE DEDUCTION FOR BUSINESS MEALS TO 50 OF THE COST FROM THE PRESENT 80 BUT HE WANTS TO ERASE ENTIRELY THE EXISTING DEDUCTION FOR MEALS EATEN WHEN HOUSEHUNTING MOVING OR LODGING TEMPORARILY IN CONNECTION WITH A TRANSFER OR A NEW JOB THE PROPOSAL ALSO WOULD MAKE EMPLOYER REIMBURSEMENTS FOR MEAL EXPENSES TAXABLE MOVING GENERALLY DOESN'T RAISE MEAL COSTS ACCORDING TO THE TREASURY THE PROPOSAL ALSO WOULD BAR DEDUCTIONS AND TAX EMPLOYER REIMBURSEMENTS FOR COSTS OF SELLING AND BUYING HOMES OR BREAKING AND ACQUIRING LEASES SALES AND PURCHASE COSTS SHOULD BE LUMPED WITH SALES AND PURCHASE PRICES THE TREASURY SAYS AND LEASE COSTS ARE PERSONAL AND NONDEDUCTIBLE THE PROPOSALS WOULD RAISE COSTS FOR PEOPLE MOVING ON THEIR OWN SAYS PETER ELINSKY OF KPMG PEAT MARWICK CPAS BUT HE SAYS MANY EMPLOYERS WOULD AUGMENT REIMBURSEMENTS TO THEIR EMPLOYEES TO OFFSET AT LEAST SOME OF THE TAX EFFECTS JOBRELATED TRAVEL LODGING AND SHIPMENTS OF HOUSEHOLD GOODS WOULD REMAIN DEDUCTIBLE UNDER THE PROPOSALS THE JOBS CREDIT FOR HIRING TARGETED POOR AND NEEDY WORKERS WOULD BE REVIVED BY CLINTON PERMANENTLY AND RETROACTIVELY TO LAST JULY 1 A NEW CREDIT OF UP TO 1200 WOULD BE CREATED FOR HIRING A PARTICIPANT IN CERTAIN HIGHSCHOOL APPRENTICESHIP PROGRAMS THAT COMBINE WORK AND STUDY COMPUTER UPDATING AT THE IRS WOULD BE ACCELERATED BY CLINTON'S PROPOSAL TO ADD 148 MILLION TO FISCAL 199394 SPENDING THE IRS WOULD REPLACE OLD MINICOMPUTERS BUY LAPTOP PCS FOR AUDITORS IMPROVE TELECOMMUNICATIONS AND TAKE OTHER STEPS DUES AND DON'TS CLINTON WOULD DENY ANY DEDUCTION AFTER 1993 FOR MEMBERSHIPS IN LUNCHEON SOCIAL GOLF AND OTHER CLUBS WHERE BUSINESS AND PLEASURE MEET BUT BUSINESS EXPENSES THERE SUCH AS MEALS WOULD BE DEDUCTIBLE IF THEY MET BUSINESS TESTS EARNEDINCOME CREDITS WOULD BE SIMPLIFIED AS WELL AS EXPANDED BY CLINTON THESE AIDS TO THE WORKING POOR ARE CRITICIZED FOR NOT APPLYING TO ENOUGH OF THEM AND FOR DAUNTING COMPLEXITY THE PRESIDENT IS EXPECTED TO ATTACK BOTH FAILINGS WHILE THE TREASURY'S SUMMARY SAYS DETAILS AREN'T FINAL EARLIER INDICATIONS WERE THAT THE PROPOSALS WOULD ALLOW CREDITS FOR THE FIRST TIME TO CHILDLESS COUPLES WOULD INCREASE CREDIT RATES AND WOULD RAISE SUBSTANTIALLY THE INCOME CEILING FOR ELIGIBLE FAMILIES THE 1993 INCOME CEILING IS 23050 FURTHER THE ADMINISTRATION IS EXPECTED TO SEEK REPEAL OF THE SUPPLEMENTAL CREDITS FOR A FAMILY WITH A CHILD UNDER AGE ONE AND FOR HEALTHINSURANCE COSTS IT MAKES SENSE TO GET RID OF THESE CREDITS SAYS ISAAC SHAPIRO OF THE CENTER ON BUDGET AND POLICY PRIORITIES THEY ARE TOO SMALL TO ACCOMPLISH THEIR GOALS AND HAVE THE UNFORTUNATE SIDE EFFECT OF COMPLICATING THE OVERALL CREDITS THE CENTER RUNS PROGRAMS TO HELP THE POOR CLAIM THE REFUNDABLE CREDITS TO GET EARNEDINCOME CREDITS EVEN WORKERS WHO DON'T OWE TAX MUST FILE RETURNS AND FILL OUT SCHEDULE EIC BRIEFS SINGER JERRY LEE LEWIS HAS FILED A NOTICE OF APPEAL FROM A BANKRUPTCY COURT'S REFUSAL TO CANCEL HIS TAX DEBTS SAYS HIS MEMPHIS LAWYER CHARLES WALDMAN THE COURT'S RULING WAS REPORTED HERE LAST WEEK HOUSE WAYS AND MEANS MEMBERS PLAN A HEARING TOMORROW ON WAYS TO SIMPLIFY PAYMENTS OF TAXES ON DOMESTIC WORKERS 9303030034 930303 WHO'S NEWS CS FIRST BOSTON REALIGNS KEY AIDES IN BID TO BOOST GLOBAL BOND OPERATIONS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CS FIRST BOSTON GROUP INC ANNOUNCED A HIGHLEVEL REORGANIZATION IN A BID TO BEEF UP ITS GLOBAL BOND BUSINESS THE BIG INVESTMENT BANK SAID THOMAS SEXTON THE HEAD OF ITS US BOND OPERATIONS RESIGNED FOR PERSONAL REASONS IN HIS PLACE CS FIRST BOSTON BROUGHT ROBERT E DIAMOND JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS CS FIRST BOSTON PACIFIC SUBSIDIARY TO RUN ITS 675MEMBER US BOND SALES AND TRADING DIVISION AT THE SAME TIME ROBERT M BAYLIS VICE CHAIRMAN OF CS FIRST BOSTON'S US UNIT WILL MOVE TO HONG KONG TO REPLACE MR DIAMOND AS CHIEF OF CS FIRST BOSTON GROUP'S PACIFIC OPERATING UNIT THE REORGANIZATION CS FIRST BOSTON OFFICIALS SAY WILL HELP COORDINATE ITS GLOBAL BOND OPERATIONS WE WILL HAVE TWO OF OUR MOST SENIOR MANAGERS TYING TOGETHER ALL OF OUR FIXEDINCOME BUSINESS ON A WORLDWIDE BASIS JOHN M HENNESSY CS FIRST BOSTON GROUP CHIEF EXECUTIVE SAID IN A STATEMENT THE CHANGES ARE THE LATEST ATTEMPT BY CS FIRST BOSTON TO FULLY INTEGRATE ITS FARFLUNG SECURITIES OPERATIONS IN 1988 FIRST BOSTON AND ITS EUROPEAN AFFILIATE MERGED TO CREATE NEW YORKBASED CS FIRST BOSTON BILLED AS A CLOSELY HELD TRULY GLOBAL INVESTMENT BANK WITH CLOSELY LINKED UNITS IN NEW YORK LONDON AND TOKYO BUT COORDINATION AMONG THE UNITS HAS NOT ALWAYS BEEN SMOOTH WHAT WE'RE TRYING TO DO IS INTEGRATE OUR FIXEDINCOME GROUPS IN THE US AND JAPAN AND DEVELOP A BROAD PLAN FOR FIXED INCOME TO TAKE ADVANTAGE OF CROSSBORDER DEMAND FROM NONUS BOND ISSUERS SAID A FIRST BOSTON SPOKESWOMAN CS FIRST BOSTON IS A UNIT OF CS HOLDING WHICH ALSO OWNS THE GIANT SWISS BANK CREDIT SUISSE FIRST BOSTON THE BIG US UNIT WAS RANKED NO 4 AMONG US INVESTMENT BANKS IN UNDERWRITING NEW BOND ISSUES IN 1992 WITH A 102 SHARE OF THE MARKET ACCORDING TO SECURITIES DATA CO THAT WAS DOWN FROM A 105 MARKET SHARE IN 1991 SECURITIES DATA SAYS THE REORGANIZATION COMES AMID SOME RECENT DEFECTIONS AT FIRST BOSTON THE FIRM'S BIG US UNIT THE DEPARTURES MANY OF WHICH WERE IN THE BOND GROUP STEMMED PARTLY FROM DISAPPOINTMENT OVER RELATIVELY MEAGER YEAREND BONUSES SOME ANALYSTS SAID FIRST BOSTON DEFENDS ITS PAY PACKAGES AND NOTES THAT DEPARTURES ARE COMMON ON WALL STREET AFTER BONUSES ARE DOLED OUT PEOPLE AT FIRST BOSTON MAY NOT HAVE GOTTEN PAID AS WELL AS SOME OF THEIR COUNTERPARTS ON COMMISSION AT RIVAL WALL STREET FIRMS SAYS ARCHIBALD COX JR FIRST BOSTON'S PRESIDENT AND CHIEF EXECUTIVE ON THE OTHER HAND IN BAD YEARS I THINK OUR GUYS DO BETTER THAN GUYS WITH THOSE KINDS OF DEALS HE ADDS IN THIS ENVIRONMENT YOU GET FIRMS OFFERING AWFULLY GOOD PAY PACKAGES TO PEOPLE MR DIAMOND 41 YEARS OLD WILL CONTINUE TO BE RESPONSIBLE FOR ALL SALES AND TRADING ACTIVITY IN JAPAN AND ELSWHERE IN ASIA HE ALSO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OF CS FIRST BOSTON JAPAN AND BECOME ONE OF THREE VICE CHAIRMEN OF FIRST BOSTON CORP MR BAYLIS 54 NOW WILL JOIN CS FIRST BOSTON GROUP'S EXECUTIVE BOARD WHICH SETS STRATEGY FOR THE GLOBAL INVESTMENT BANK MR BAYLIS ALSO WILL KEEP HIS ROLE AS SENIOR ADVISER TO SEVERAL FINANCIAL INSTITUTIONS WORLDWIDE FIRST BOSTON SAID MR SEXTON 48 IN A STATEMENT SAID I THINK THE TEAM WE HAVE IN PLACE AND OUR ACCOMPLISHMENTS SPEAK FOR THEMSELVES HE WASN'T AVAILABLE TO ELABORATE ON HIS REASONS FOR LEAVING CS FIRST BOSTON GROUP HAD 1992 NET INCOME OF 175 MILLION DOWN 19 FROM THE 215 MILLION IT EARNED IN 1991 THE FIRM ALONG WITH SEVERAL WALL STREET FIRMS SAID ITS BIGGEST CONTRIBUTOR TO 1992 PROFIT WAS BOND SALES AND TRADING 9303030033 930303 AUTOMOBILES BY OSCAR SURIS HOT DEMAND FOR HIGHCOST OPTIONS IS SURPRISING CAR COMPANIES CHRYSLER INITIALLY EXPECTED TO SELL ANTILOCK BRAKES ON HALF OF ITS NEW LH SEDANS THE CHRYSLER CONCORDE EAGLE VISION AND DODGE INTREPID INSTEAD BUYERS ARE ORDERING THE 599 OPTION ON NEARLY 80 OF THE CARS THE UNEXPECTED DEMAND IS PROVIDING A BOOST TO COMPANIES LIKE ITT'S ITT AUTOMOTIVE UNIT WHICH SUPPLIES ANTILOCK BRAKES TO CHRYSLER AND OTHER AUTO MAKERS BUT A CHRYSLER DEALERSHIP IN CHICAGO REPORTS THAT CUSTOMERS MUST WAIT 45 TO 60 DAYS FOR THEIR LH CARS IF THEY ORDER ANTILOCK BRAKES IF THEY'RE WILLING TO DO WITHOUT THEY CAN GET A NEW CAR IN 15 TO 25 DAYS GENERAL MOTORS' CADILLAC DIVISION MEANWHILE UNDERESTIMATED DEMAND FOR ITS 32VALVE 295HORSEPOWER NORTHSTAR ENGINE SINCE CADILLAC PUT THE NORTHSTAR IN ITS SEVILLE STS LAST FALL SALES OF THE MODEL HAVE MORE THAN DOUBLED EVEN THOUGH THE ENGINE PUSHED UP THE CAR'S PRICE BY 5000 TO ABOUT 42000 GM'S CONCLUSION THE YOUNGER CONSUMERS THAT CADILLAC SEEKS DEMAND MORE FROM THE GUTS OF THEIR AUTOMOBILES LIKE CHRYSLER'S CUSTOMERS HOWEVER SOME OF CADILLAC'S NEW FANS HAVE HAD TO WAIT MONTHS FOR THEIR NORTHSTAR ENGINES A GM SPOKESMAN SAYS SMALLER DEALERS HAVE HAD A TOUGHER TIME KEEPING THE SEVILLE STS IN STOCK BECAUSE MOST OF THE COMPANY'S OUTPUT HAS GONE TO HIGHVOLUME DEALERS CONSUMERS UNION A CONSUMERSADVOCACY GROUP WARNS AGAINST BEING OVERCHARGED FOR POPULAR OPTIONS A SPOKESWOMAN FOR THE YONKERS NY ORGANIZATION SAYS HOT OPTIONS CAN OFTEN BE PRICED TO PAD A DEALER'S PROFIT MARGIN YOU CAN INSIST THAT THEY PROVIDE YOU WITH THE DEALER'S COST INVOICE SHE SAYS TO IMPROVE YOUR BARGAINING POWER THE FIGHT AGAINST SALVAGE FRAUD IS HEATING UP REP BOB CLEMENT A TENNESSEE DEMOCRAT IS SPONSORING LEGISLATION THAT WOULD REQUIRE ALL STATES TO ACCEPT DAMAGE INFORMATION FROM A USED VEHICLE'S PREVIOUS TITLE CURRENTLY CONSUMERS AND THE AUTO INDUSTRY GET STUNG FOR BILLIONS OF DOLLARS A YEAR WHEN REBUILT WRECKS GET RETITLED IN OTHER STATES SO THEY CAN LATER BE SOLD FOR THOUSANDS ABOVE THEIR ACTUAL VALUE REP CLEMENT'S LEGISLATION ALSO CALLS FOR A NATIONAL STANDARD FOR DEFINING SALVAGE OR JUNK VEHICLES REBUILT WRECKS TYPICALLY GET RETITLED IN STATES THAT HAVE LOOSER DEFINITIONS FOR SALVAGE CURRENTLY SEVEN STATES HAVE NO SALVAGEINFORMATION REQUIREMENT FOR TITLE DOCUMENTS MR CLEMENT'S LEGISLATION WOULD REINFORCE THE 1992 ANTI CAR THEFT ACT WHICH COMMISSIONED A DEPARTMENT OF TRANSPORTATION INVESTIGATION INTO SALVAGE FRAUD LAST YEAR'S ACT ALSO MANDATED THE FORMATION OF A NATIONAL DATABASE BY 1996 THAT WOULD BE SIMILAR TO ONE ALREADY IN USE AT ANGLOAMERICAN AUTO AUCTIONS THE NASHVILLE TENN COMPANY A MAJOR SUPPORTER OF THE 1992 ACT TOOK THE LEAD IN BATTLING SALVAGE FRAUD WHEN IT CREATED A DATABASE THAT CONTAINS INFORMATION ON 37 MILLION VEHICLE TITLES BEFORE IT AUCTIONS A VEHICLE THE COMPANY NOW CHECKS ITS TITLE AGAINST THE DATABASE IF A DAMAGE HISTORY APPEARS THE CAR'S SELLER EITHER DISCLOSES THE DAMAGE HISTORY OR PULLS THE VEHICLE OUT OF THE AUCTION STABLE GASOLINE PRICES HAVE DONE LITTLE FOR THE POPULARITY OF FUELEFFICIENT CARS CITING SALES DATA THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION SAYS PASSENGER CARS WITH FUEL ECONOMIES OF 40 MILES PER GALLON OR MORE ACCOUNT FOR LESS THAN 3 OF THE US CAR MARKET A THIRD OF THE MARKET NOW IS LIGHT TRUCKS AND MINIVANS THEY ARE NOT FUELEFFICIENT VEHICLES SAYS MIKE STANTON AN AAMA DIRECTOR AUTOINDUSTRY ANALYST CHRISTOPHER CEDERGREN SAYS CONSUMERS HAVE REJECTED FUELEFFICIENT CARS THAT LOOK LIKE ECONOBOXES TO INCREASE DEMAND FOR FUELEFFICIENT VEHICLES AUTO MAKERS HAD HOPED PRESIDENT CLINTON'S BUDGET PROPOSAL WOULD INCLUDE A SUBSTANTIAL BOOST IN FEDERAL GASOLINE TAXES BUT THE CLINTON PLAN CALLS FOR ONLY A MODEST TAX INCREASE THAT IS EXPECTED TO HAVE LITTLE IMPACT ON CONSUMER CARBUYING PATTERNS MR CEDERGREN SAYS GASOLINE PRICES WOULD HAVE TO RISE BY 50 TO 70 BEFORE CONSUMERS BEGIN VALUING FUEL ECONOMY OVER STYLING SAFETY OR PRICE ONLY THEN HE SAYS WILL YOU SEE PEOPLE WITH LARGER CARS GO DOWN A CLASS AND BUY A SMALLER CAR AUTO MAKERS AND THEIR SUPPLIERS ARE TESTING WAYS TO ENHANCE DRIVERS' FIELDS OF VISION GM AND FORD MOTOR ARE ADAPTING DEFENSE TECHNOLOGY USED FOR RADAR OR INFRAREDVISION SYSTEMS THAT WARN DRIVERS OF IMPENDING COLLISIONS OR HELP THEM NAVIGATE THROUGH DENSE FOG SPARTON JACKSON MICH HAS AN AIR ACOUSTIC ECHO RANGING SYSTEM THAT TRIGGERS A WARNING WHEN A VEHICLE MOVES INTO A BLIND SPOT BEHIND THE DRIVER BUT THESE SYSTEMS AREN'T QUITE READY FOR THE SHOWROOM YET A FORD SPOKESMAN CITES THE PROBLEM OF GETTING THE RADAR TO DO THIS WITHOUT HAVING TO MOUNT A DISK ON THE CAR'S ROOF THAT WOULD MAKE IT LOOK LIKE SOME KIND OF MOON VEHICLE THE LATEST WRINKLE IN LEASING IS BEING OFFERED BY GM A SMARTLEASE PLUS FOR CUSTOMERS WHO WANT TO MAKE ONE BIG LEASE PAYMENT UP FRONT INSTEAD OF PAYING OVER THREE YEARS THE LESSEE OF A 35523 CADILLAC SEDAN DEVILLE WOULD PAY 19210 AT THE START OF A THREEYEAR LEASE AND MAKE NO FURTHER PAYMENTS GM OF COURSE COULD INVEST THE MONEY IMMEDIATELY ROUGHLY OFFSETTING THE CUSTOMER'S 1390 SAVING COMPARED WITH A NORMAL 36PAYMENT LEASE HOWEVER THE CONSUMER CAN NO LONGER INVEST HIS 19210 SO HIS SAVING WOULD IN EFFECT BE WIPED OUT SIMPLY GM SAYS THE LEASE IS AIMED AT PEOPLE WHO LIKE TO BUY FOR CASH 9303030032 930303 LEISURE & ARTS EUROCODE FOR ITALY'S DRIVERS BY FREDERIKA RANDALL MILAN FOR MANY ITALIANS GETTING USED TO THE NEW TRAFFIC CODE HAS BEEN A LITTLE LIKE MOTORING INTO CANTO 1 OF DANTE'S INFERNO A SICKENING PLUNGE OVER THE GUARDRAIL OF NORMALITY INTO A DARK WOOD WHERE THE STRAIGHT WAY WAS LOST THE NUOVO CODICE DELLA STRADA IN EFFECT SINCE JAN 1 BRINGS A HARSH EUROPEAN DISCIPLINE TO THOSE HIGHSPIRITED LOCAL DRIVERS WHO ARE EXCEEDINGLY QUICK TO LET YOU KNOW THEY HAVE THE FASTEST REFLEXES IN THE WORLD DRIVING IN SINGLE MARKET EUROPE MAKES THEM FEEL FAR FROM HOME SPAESATI THEY WILL TELL YOU WANDERERS IN A HELLISH LANDSCAPE OF SPIRITUAL ANARCHY EXILE AND DESPAIR ANARCHY DESPAIR BUT ISN'T THAT SOMETHING LIKE WHAT PREVAILED BEFORE THE NEW CODE IS THIS NOT THE PLACE WHERETO CHOOSE JUST ONE EXAMPLE 100 CARS AND TRUCKS RACING THROUGH HEAVY FOG PLOWED INTO EACH OTHER IN A MAXIACCIDENT ON THE MAIN NORTHSOUTH AUTOSTRADA DEL SOLE KILLING SEVEN PEOPLE AND INJURING MORE THAN 100 AS 29 VEHICLES BURNED OUT OF CONTROL ISN'T THIS THE SAME BEL PAESE WHERE NEAPOLITAN ENTREPRENEURS MADE A BUNDLE SELLING TSHIRTS ADORNED WITH A REALISTIC PHOTO OF A SEAT BELT FOR DRIVERS WHO FELT THE REAL THING WAS JUST TOO UNDIGNIFIED TO BUCKLE ON THE COUNTRY WHERE 80 OF DRIVERS POLLED BY THE AUTOMOBILE CLUB OF ITALY LAST YEAR HAPPILY ADMITTED THEY DIDN'T WEAR SEAT BELTS 84 SAID THEY IGNORED SPEED LIMITS AND 30 OFTEN RAN RED LIGHTS NOT THAT DRIVERS ARE THE ONLY ONES WHO RUN RIOT THERE ARE ALSO THOSE WHO MAKE THE RULES WHAT ABOUT THE GOOD OLD TWOTIERED SPEED LIMITS WHICH GAVE A LARGELY SYMBOLIC BOOST TO GAS CONSUMPTION AND UPMARKET CARS RULING THAT AUTOS WITH AN ENGINE SIZE OVER 11 LITERS COULD TRAVEL AT 80 MILES PER HOUR ON HIGHWAYS WHILE LESS POWERFUL CARS COULD ONLY GO 68 MPH AND SO ON DOWN IT WENT WITH TWO SETS OF SPEEDS FOR EACH OF FOUR SEPARATE ROAD CATEGORIES VIRTUALLY NO TRAFFIC OFFICERS EVER MATERIALIZED TO ENFORCE THE LOGARITHMIC MYSTERIES AND THAT WAS JUST AS WELL SINCE ON MANY ROADS CREATING TWO SPEED STREAMS DID NOT LEAVE ANY STREAM AT ALL FOR POLICE PATROLS OR OVERTAKING CARS TO TRAVEL IN BUT NOW THE NEW CODE HAS SWEPT THAT ALL AWAY NO MORE STAGGERED SPEEDS BUT FLAT LIMITS OF 80 MPH ON HIGHWAYS 68 MPH ON OTHER MAJOR ROADS BACKED UP BY FINES AS HIGH AS 1300 FOR OFFENDERS GOING MORE THAN 25 MPH ABOVE THE MAXIMUM AND THEY DO GO THAT FAST THE BIG BMWS AND MERCEDES WITH GERMAN AND NORTHERN ITALIAN PLATES AND THE ALFAS AND LANCIAS FERRYING NATIVE POTENTATES IN A HURRY ROUTINELY CRUISE AT SPEEDS OF 100+ MPH THE CODE ALSO PROVIDES PENALTIES UP TO 130 FOR NOT BUCKLING UP AND HAS RADICALLY TOUGHENED THE DRIVERS' EXAM SO THAT 80 OF WOULDBE LICENSE HOLDERS IN SOME TOWNS AND 45 NATIONALLY HAVE FAILED THE NEW WRITTEN TEST IT HAS INSTITUTED MUCH MORE FREQUENT CAR INSPECTIONS AND BARRED NEW LICENSE HOLDERS FROM DRIVING POWERFUL CARS IN A MOVE TO REDUCE THE SOCALLED SATURDAY NIGHT FEVER MASSACRES OF YOUNG PEOPLE HEADING HOME FROM DISCOTHEQUES NEEDLESS TO SAY YOU SIMPLY HAVE TO HAVE BEEN BORN THIS SIDE OF THE ALPS TO APPRECIATE HOW ILLOGICAL INDEED HOW PROFOUNDLY SENSELESS MOST OF THE 240 APPARENTLY WELLINTENTIONED ARTICLES OF THE NEW CODE ARE NOT THE LIFESAVING PROVISIONS OF COURSE BUT WHEN YOU LOOK CLOSELY SAY SKEPTICS YOU WILL FIND THAT THE RULEBOOK IS RIDDLED WITH CONTRADICTIONS RIDICULOUS IN FORM AND IN CONTENT DECREED THE ROME DAILY LA REPUBBLICA PICKING OUT ONE SILLYSOUNDING RULE PROHIBITING SKATES SKATEBOARDS AND OTHER GAIT ACCELERATORS' FROM CIRCULATING ON ROADS AND SIDEWALKS THAT PAPER AND OTHERS ARGUED THAT THE CODE WHICH WASN'T SUBMITTED TO BRUSSELS FOR FINAL REVIEW AS REQUIRED BY EUROPEAN COMMUNITY PROCEDURES IS LEGALLY UNENFORCEABLE AN INFLUENTIAL TRADE MAGAZINE ADVANCED SOME EVEN MORE SERIOUS CRITICISMS OF THE NEW RULES THE FRUIT OF YEARS OF UNDERGROUND DEALINGS BY POWERFUL PRESSURE GROUPS QUATTRORUOTE SAID THAT BENEFIT NOT AUTOMOBILISTS BUT AGENCIES AUTHORITIES MINISTRIES AND INDUSTRIES THAT HAVE ASSURED THEMSELVES CONSPICUOUS ADVANTAGES IN ECONOMIC AND POWER TERMS THAT MAY WELL BE ALTHOUGH THE SAME MAGAZINE TARNISHES ITS FINE IMPARTIALITY SOMEWHAT BY LEAPING TO THE DEFENSE OF VALOROUS NATIONAL DRIVERS WHO WITH CENTURIES OF HISTORY THAT TESTIFY TO OUR INNATE PREDISPOSITION FOR THE ARTS SCIENCES LOVE MAKING HAVE ENDED UP FEELING MORE INTELLIGENT CLEVERER AND BETTER THAN THEIR NEIGHBORS OBVIOUSLY THIS AWARENESS ALSO EXTENDS TO OUR AUTOMOTIVE STYLE WHERE FOR QUICKNESS OF REFLEXES NERVE AND MECHANICAL SENSITIVITY WE PERCEIVE OURSELVES TO BE AT THE TOP OF THE CLASS QUATTRORUOTE WENT ON IN ONE OF THOSE EMBARRASSING GUSHES THAT SEEM TO CONFIRM ALL KNOWN STEREOTYPES ABOUT ITALIAN DRIVERS BEING DRUNK ON FIAT FERRARI AND FORMULA UNO AS WELL AS A BIT TOO MUCH SPUMANTE TO BE FAIR TO DRIVERS SERIOUSLY OVERCROWDED HIGHWAYS AND HEAVY TRUCK TRAFFIC COMPLICATE THE TASK OF IMPROVING ROAD ETIQUETTE SO DO SHEEP WHICH STILL HAVE THE RIGHT OF WAY ON CERTAIN ROADS IN THIS MAGICAL LAND WHERE HIGHTECH AUTOMOTIVE ENGINEERING MEETS THE TRANSHUMANCE THE AGEOLD SEASONAL MIGRATION OF FLOCKS AND SHEPHERDS BETWEEN HIGH AND LOW PASTURES THE NEW CODE ATTEMPTS TO ADDRESS THAT LAST PROBLEM AT LEAST WITH RULES THAT APPLY TO DROVERS AS WELL AS DRIVERS CONDUCTORS OF DRAFT OR SADDLE ANIMALS OR BEASTS OF BURDEN HERDS FLOCKS OR OTHER GROUPS OF ANIMALS THE NEW CODE SAYS MUST BE AT LEAST 14 YEARS OLD AND POSSESS APPROPRIATE PHYSICAL AND PSYCHIC REQUISITES MEANING PRESUMABLY WORLDCLASS REFLEXES NERVE AND MECHANICAL SENSITIVITY MS RANDALL IS A WRITER IN MILAN 9303030031 930303 CITICORP'S VECTURA SUES FORMER CEO ALLEGING FRAUD BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH VECTURA GROUP INC A BARGE COMPANY LARGELY OWNED BY CITICORP FILED A LAWSUIT IN FEDERAL COURT AGAINST ITS FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER ALLEGING HE DEFRAUDED THE COMPANY OF AT LEAST 105 MILLION PITTSBURGHBASED VECTURA WHICH HAD 337 MILLION IN SALES IN 1991 ALLEGES JOSEPH K KAPPEL WHO AGREED TO RESIGN AS PRESIDENT CEO AND DIRECTOR IN DECEMBER DEFRAUDED THE COMPANY FOR HIS PERSONAL AND OUTSIDE BUSINESS INTERESTS CLOSELY HELD VECTURA A HOLDING COMPANY CREATED IN A 1988 MANAGEMENTLED LEVERAGED BUYOUT OF SEVERAL DRAVO CORP BUSINESSES OWNS AND RUNS BARGES AND MANAGES PORTS ON MAJOR AMERICAN WATERWAYS THE 48YEAROLD MR KAPPEL WHO LIVES IN MCKEES ROCKS PA AND HIS ATTORNEY DECLINED TO COMMENT CITICORP VENTURE CAPITAL LTD A CITICORP UNIT WITH AN APPROXIMATELY 80 EQUITY STAKE AND A SEAT ON THE BOARD OF VECTURA ALSO DECLINED TO COMMENT VECTURA'S PERFORMANCE IN RECENT YEARS HAS BEEN ROCKY AND THE COMPANY HAS SAID IT IS CONSIDERING GOING PUBLIC TO RAISE MONEY NET INCOME FOR 1991 WAS 51 MILLION DOWN FROM 61 MILLION THE PREVIOUS YEAR WHILE RETURN ON STOCKHOLDERS' EQUITY DECREASED TO 202 IN 1991 FROM 268 A YEAR EARLIER THE SUIT FILED IN US DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA SAYS MR KAPPEL A FORMER DRAVO EXECUTIVE AND ORIGINAL VECTURA INVESTOR USED VECTURA FUNDS FOR UNAUTHORIZED PERKS FOR EXAMPLE MR KAPPEL IS ACCUSED IN THE SUIT OF USING 28556 OF VECTURA MONEY TO TAKE 13 FRIENDS AND ASSOCIATES ON A WYOMING HUNTING TRIP AND OF SPENDING 53000 IN COMPANY FUNDS ON VINTAGE CORVETTES FOR HIS PERSONAL COLLECTION THE SUIT ALSO SAYS THAT MR KAPPEL HAD CONTROLLING INTERESTS IN SEVERAL COMPANIES WHICH ARE NAMED IN THE SUIT THOSE COMPANIES ALLEGEDLY OVERCHARGED VECTURA FOR SERVICES AND WROTE FALSE INVOICES FOR REPAIRS AND FINANCING NEVER RENDERED ACCORDING TO THE SUIT SPECIFICALLY MR KAPPEL IS ACCUSED OF BILLING A VECTURA UNIT NBL INC WHOSE STOCK HE CONTROLLED THUS NBL BECAME A CONDUIT OR FUNNEL THROUGH WHICH HE AND OTHER DEFENDANTS FRAUDULENTLY SIPHONED OFF FUNDS TO THEIR OWN USE THE SUIT SAYS ALSO NAMED IN THE SUIT IS JOHN P O'TOOLE A VECTURA EMPLOYEE AND MR KAPPEL'S PARTNER IN OUTSIDE BUSINESSES MR O'TOOLE COULDN'T BE REACHED FOR COMMENT IN ADDITION THE SUIT ALLEGES MR KAPPEL CHARGED VECTURA FOR HIGHER LIFE INSURANCE PREMIUMS THAN CALLED FOR IN HIS COMPENSATION AGREEMENT AND USED COMPANY MONEY FOR PERSONAL INVESTMENTS INCLUDING A RIVERFRONT RESTAURANTDISCO COMPLEX IN PITTSBURGH THE SUIT ASKS FOR UNSPECIFIED REIMBURSEMENT AND DAMAGES FROM MR KAPPEL AND OTHERS WHILE THE SUIT LISTS 105 MILLION IN LOSSES VECTURA SAID IT RESERVES THE RIGHT TO TALLY ADDITIONAL LOSSES LATER FOLLOWING A COMPLETE ACCOUNTING 9303030030 930303 INTERNATIONAL US HISPANICS FLEX POLITICAL MUSCLES AS MEXICO LOBBIES FOR NAFTA SUPPORT BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN GOVERNMENT'S COURTSHIP OF MEXICANAMERICANS ON ITS ALLIMPORTANT NORTH AMERICAN FREE TRADE AGREEMENT IS MEETING RESISTANCE DESPITE MILLIONS SPENT BY THE GOVERNMENT LOBBYING MEXICANAMERICANS TO SUPPORT THE AGREEMENT WHICH WOULD LINK THE ECONOMIES OF MEXICO THE US AND CANADA INTO A HUGE TRADE BLOC A COALITION OF US HISPANIC GROUPS HAS SET SOME BIGTICKET TERMS OF ITS OWN IN RETURN FOR ITS SUPPORT THE COALITION WHICH INCLUDES ELEMENTS RANGING FROM CIVILRIGHTS GROUPS TO HISPANIC CHAMBERS OF COMMERCE SAYS THE US AND MEXICO NEED TO COMMIT 103 BILLION OVER THE NEXT DECADE TO BUILD UP ROADS PORTS AND OTHER TRADE INFRASTRUCTURE AND TO PROTECT THE ENVIRONMENT AN ADDITIONAL 6 BILLION SHOULD BE SPENT BY THE US IN JOB TRAINING FOR DISPLACED WORKERS MANY OF WHOM WOULD BE MEXICANAMERICANS THE GROUP SAYS IN A RECENT POSITION PAPER WE KNOW THAT ECONOMIC INTEGRATION IS INEVITABLE SAYS ANTONIO GONZALEZ A PROJECT DIRECTOR WITH THE SOUTHWEST VOTER REGISTRATION AND EDUCATION PROJECT IN LOS ANGELES BUT HE ADDS WE THINK THE CURRENT PACT IS TILTED TOO FAR TOWARD BIG BUSINESS INTERESTS THE MEXICAN GOVERNMENT REACTED SWIFTLY TO THE POSITION PAPER BY THE COALITION WHICH HOLDS A STRATEGY MEETING NEXT WEEK IN WASHINGTON HERMINIO BLANCO MEXICO'S CHIEF NAFTA NEGOTIATOR CALLED ONE HISPANIC LEADER SHORTLY AFTER THE PAPER'S RELEASE LAST MONTH TO EXPRESS CONCERN THAT THE GROUP COULD SINK THE PACT SAYS A MEXICAN SOURCE AS PART OF ITS LOBBYING EFFORT MEXICO'S FREEMARKET REFORMER PRESIDENT CARLOS SALINAS DE GORTARI LAST WEEK GAVE THE COUNTRY'S PRESTIGIOUS AZTEC EAGLE MEDAL TO TWO MEXICANAMERICAN LEADERS THE MEDAL HAS BEEN GIVEN SINCE 1933 TO NONCITIZENS FOR SYMPATHIES SHOWN TOWARD MEXICANS SUCH RECIPIENTS WOULD HAVE BEEN UNTHINKABLE IN PAST YEARS BECAUSE MEXICANS TRADITIONALLY HAVE VIEWED MEXICANAMERICANS AS HAVING FORSAKEN THEIR IMPOVERISHED HOMELAND FOR CAPITALISTIC US COMFORTS BEFORE THE CEREMONY PRESIDENT SALINAS TOOK THE WINNERS ASIDE AND COMPARED NAFTA TO A CHRISTMAS TREE SO LOADED WITH DECORATIONS THAT IT FALLS OVER FROM ITS OWN WEIGHT SAYS RAUL YZAGUIRRE AN HONOREE AND PRESIDENT OF THE NATIONAL COUNCIL OF LA RAZA AN UMBRELLA ORGANIZATION OF HISPANIC SOCIALSERVICE GROUPS MR YZAGUIRRE SAYS HE SUPPORTS NAFTA BUT PRETTY MUCH DOWN THE LINES OF WHAT PRESIDENT CLINTON WANTS WITH PROTECTIONS FOR AMERICAN WORKERS AND ENVIRONMENTAL CONCERNS WHILE MANY MEXICANAMERICANS WORRY ABOUT NAFTARELATED JOB LOSSES AMONG LOWWAGE FACTORY WORKERS THE DEBATE HAS ALSO PROVIDED PLENTY OF POLITICAL OPPORTUNITY US LATINOS ARE DESPERATE FOR A POLITICAL ISSUE THAT GIVES THEM PALANCAS OR LEVERS ON BOTH SIDES OF THE BORDER SAYS ALEX SARAGOZA OF THE UNIVERSITY OF CALIFORNIA MOREOVER SAYS DR SARAGOZA NAFTA FULFILLS A DREAM THEY'VE HAD FOR A LONG TIME TO BE LIKE THE JEWISH LOBBY IN THE US FOR ISRAEL BUT SUCH AN ETHNIC LOBBY MUST DEAL WITH DIVIDED OPINIONS REGARDING CERTAIN MEXICAN ISSUES ANALYSTS NOTE THE POSITION PAPER SIDESTEPS CRITICISMS OF MEXICO'S POLITICAL DEMOCRACY AND ITS HUMANRIGHTS RECORD BUT IT DOES URGE FORMATION OF A TRINATIONAL COMMISSION TO WORK TOWARD LIBERALIZING MIGRATION BETWEEN THE THREE COUNTRIES A STAND THAT IS AT ODDS WITH THE POSITION OF THE MEXICAN GOVERNMENT WHICH HAS AVOIDED THE SENSITIVE ISSUE FOR FEAR OF HURTING NAFTA'S CHANCES OF PASSAGE IN THE US IMMIGRATION IS REALLY THE PARAMOUNT LINKAGE BETWEEN THE UNITED STATES AND MEXICO SAYS MR GONZALEZ MORE SO THAN TRADE AND FOREIGN INVESTMENT FLOWS PRIVATELY THOUGH MEXICAN OFFICIALS SAY FOREIGN INVESTMENT NOT IMMIGRATION IS THE CRUCIAL CONCERN AND THEY ADD IT'S A POINT THAT US HISPANICS OFTEN MISS FOREIGN INVESTMENT DECLINED 16 LAST YEAR FROM A RECORD 1991 LEVEL AND MORE FOREIGN INVESTMENT IS NEEDED TO COVER THE GAPING CURRENTACCOUNT DEFICIT WHICH IS ESTIMATED AT 22 BILLION FOR 1992 9303030028 930303 WHO'S NEWS ATTORNEY AND AIDE OF SIERRA CLUB ARE NAMED TO EPA BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO PEOPLE WHO HAVE OFTEN BEEN ON THE OPPOSITE SIDES OF ENVIRONMENTAL ISSUES WERE NAMED TO TOP POSTS IN THE ENVIRONMENTAL PROTECTION AGENCY FOR DEPUTY ADMINISTRATOR PRESIDENT CLINTON SELECTED ROBERT SUSSMAN A WASHINGTON LAWYER WHO HAS REPRESENTED CHEMICAL COMPANIES FOR ASSISTANT ADMINISTRATOR FOR POLICY PLANNING AND EVALUATION MR CLINTON CHOSE DAVID GARDINER LEGISLATIVE DIRECTOR OF THE SIERRA CLUB THE NOMINEES ARE THE FIRST TO BE NAMED AT THE EPA BELOW ADMINISTRATOR CAROL BROWNER MR SUSSMAN A YALE LAW SCHOOL CLASSMATE OF BILL AND HILLARY CLINTON WAS A STRONG SUPPORTER OF MR CLINTON'S CAMPAIGN EFFORT AND ASSISTED THE CLINTONGORE TRANSITION ON ISSUES RELATED TO THE ENVIRONMENT I'VE ALWAYS HAD A VERY HIGH REGARD FOR THE AGENCY HE SAID YESTERDAY ADDING I STRONGLY SUPPORT THEIR MISSION AND LOOK FORWARD TO THE OPPORTUNITY TO HELP THEM SOME ENVIRONMENTALISTS HAVE PRIVATELY EXPRESSED CONCERN AT MR SUSSMAN'S TIES TO THE CHEMICAL INDUSTRY THE NEW DEPUTY ADMINISTRATOR WHO IS WITH THE LAW FIRM OF LATHAM & WATKINS HAS REPRESENTED THE CHEMICAL MANUFACTURERS ASSOCIATION AS WELL AS VARIOUS INDIVIDUAL CHEMICAL COMPANIES ON A VARIETY OF MATTERS RELATING TO THE TOXIC SUBSTANCES CONTROL ACT THAT HAVE COME BEFORE THE EPA MR GARDINER IN ADDITION TO HIS POST AS LOBBYIST FOR THE SIERRA CLUB IS AN ACTIVE BOARD MEMBER OF THE LEAGUE OF CONSERVATION VOTERS THE WHITE HOUSE ALSO SAID THE PRESIDENT IS NAMING BAILUS WALKER JR DEAN OF THE UNIVERSITY OF OKLAHOMA'S COLLEGE OF PUBLIC HEALTH TO BE ASSISTANT EPA ADMINISTRATOR FOR THE OFFICE OF RESEARCH AND DEVELOPMENT AND STEVE HERMAN A CAREER ATTORNEY WITH THE JUSTICE DEPARTMENT'S ENVIRONMENTAL ARM TO BE ASSISTANT ADMINISTRATOR FOR ENFORCEMENT PRESIDENT CLINTON ALSO NAMED ALEXANDER WATSON ASSISTANT SECRETARY OF STATE FOR INTERAMERICAN AFFAIRS EARLIER THE ADMINISTRATION WAS PLANNING TO NOMINATE MARIO BAEZA A NEW YORK ATTORNEY BUT THAT CHOICE WAS STRONGLY OPPOSED BY CONSERVATIVE CUBANAMERICAN GROUPS WHO ASSERTED THAT MR BAEZA A CUBANAMERICAN WAS SOFT ON COMMUNIST CUBA 9303030027 930303 LETTERS TO THE EDITOR WE ASK YOU WHO'S FUZZIER WE DON'T OBJECT TO DAVID P HAMILTON'S OPINIONS IN HIS FEB 16 LEISURE & ARTS REVIEW OF OUR BOOK FUZZY LOGIC HE HAS A RIGHT TO THEM BUT HIS CARELESSNESS IN DESCRIBING THE WORK DOES A DISSERVICE TO YOUR READERS FOR INSTANCE WE NEVER SAY THAT LOFTI ZADEH INVENTOR OF FUZZY LOGIC IS PART COLUMBUS BUT ALSO PART CORONADO FRANKLIN AND WASHINGTON THAT STATEMENT WOULD BE ABSURD WE SAY HE IS THE COLUMBUS ET AL OF FUZZY LOGIC THE DIFFERENCE IS IMMENSE WE DO QUOTE A MATSUSHITA MANAGER WHO SAYS THE FUZZY RICE COOKER YIELDS RESULTS UNOBTAINABLE ANY OTHER WAY AND A FEW PAGES LATER WE NOTE THAT THIS DEVICE IS NOT ESPECIALLY FUZZY IN THIS REGARD MR HAMILTON STATES EITHER THE AUTHORS DON'T UNDERSTAND THE CONTRADICTION OR THEY DON'T CARE BUT THERE IS NO CONTRADICTION HERE FIRST THE MANAGER'S REMARK IS NOT EVEN OURS BUT HIS OWN SECOND WHETHER THE DEVICE USES PARTIAL OR FULL FUZZY LOGIC THE MANAGER IS SAYING IT REQUIRES FUZZY OUR POINT WHICH WE STATE EXPLICITLY ON PAGE 169 IS THAT EVEN PARTLY FUZZY ITEMS CAN BESTOW SIGNIFICANT BENEFITS MR HAMILTON HAS IGNORED THIS EXPLANATION MOREOVER HE CONTENDS WE BLINDLY ACCEPT THE AUTHORITY OF THE FUZZY SCIENTISTS WE TALKED TO AND CITES FOUR UTTERANCES ALL OF WHICH APPEAR IN QUOTATION MARKS AS MOST READERS KNOW QUOTED COMMENTS SHOW THE OPINION OF THE SPEAKER ONLY MR HAMILTON UNREASONABLY ASSERTS THAT THEY ALSO SHOW OUR ACQUIESCENCE IN THEM FOR INSTANCE WE QUOTE WANG PEIZHUANG AS SAYING THAT CHINA WILL BE THE MOST DEVELOPED COUNTRY IN FUZZY LOGIC WANG PEIZHUANG IS CHINA'S LEADING FUZZY LOGICIAN SO HIS OPINION IS OF VALUE BUT MR HAMILTON CLAIMS THAT BY QUOTING HIM WITHOUT QUESTION WE ARE AGREEING WITH HIM HE FURTHER ACCUSES US OF FAILING TO WEIGH THE CLAIMS OF FUZZY PROPONENTS AND OPPONENTS BUT WE SET FORTH THE OBJECTIONS OF MANY DETRACTORS OF FUZZY LOGIC SUCH AS JUDEA PEARL AND PETER CHEESEMAN MR HAMILTON CLAIMS WE DEMONIZE THESE INDIVIDUALS BUT ON PAGE 181 WE CALL THE FORMER A LIKEABLE MAN AND WE SHOW THE LATTER'S AMIABILITY IN MANY WAYS WE ALSO ANALYZE THESE OBJECTIONS MR HAMILTON MAY NOT LIKE OUR ANALYSES BUT IF SO HE SHOULD POINT OUT ERRORS IN REASONING INSTEAD HE COMPLAINS OF FUZZY THINKING WE DON'T MIND BEING ACCUSED OF FUZZY THINKING IT'S THE STANDARD SLUR FROM OPPONENTS OF THIS FIELD WE JUST REGRET THAT MR HAMILTON WILL MISLEAD YOUR READERS INTO BELIEVING THERE IS STILL SERIOUS DEBATE ON FUZZY LOGIC FOR YEARS NOW IT HAS BEEN ENHANCING CARS CAMCORDERS SUBWAYS ELEVATORS WASHERS AND MANY OTHER PRODUCTS AND BOOSTING JAPANESE PROFITS AS LONG AS WE AMERICANS DEBATE ITS MERITS THEY'LL KEEP EARNING MORE MR HAMILTON CLAIMS I DO NOT HAVE PROOF THAT A FUZZY TARGET TRACKER CAN OUTPERFORM A STANDARD KALMANFILTER TARGET TRACKER WHEN TRACKING AND THUS SHOOTING DOWN A CRUISE OR PATRIOT MISSILE THAT IS FALSE MY GRADUATE STUDENT PETER PACINI AND I TESTED THE FUZZY TRACKER AGAINST THE KALMAN TRACKER FOR THOUSANDS OF CASES THAT INVOLVED DIFFERENT COMBINATIONS OF INPUTS AND NOISE THE FUZZY TRACKER GIVES A SMOOTHER TRACK WITH LESS OVERSHOOT AND UNDERSHOOT WITH LESS OF THE WOBBLE SEEN IN MISSILES LIKE PATRIOTS THAT USE LINEAR KALMAN FILTERS TO GUIDE THEM WE PUBLISHED THE RESULTS IN THE ARTICLE ADAPTIVE FUZZY SYSTEMS FOR TARGET TRACKING IN THE PEERREVIEWED JOURNAL INTELLIGENT SYSTEMS ENGINEERING IN 1992 AUTHORS DANIEL MCNEILL AND PAUL FREIBERGER SAW BOTH THE ARTICLE AND THE SOFTWARE DEMONSTRATIONS MR HAMILTON SUGGESTS MESSRS MCNEILL AND FREIBERGER HAVE DONE FUZZY LOGIC A DISSERVICE NOT SO HIS HIT PIECE OF A REVIEW HAS DONE THE DISSERVICE IF HE CAN ACCUSE THE AUTHORS OF NOT CHECKING THEIR FACTS WHY DIDN'T HE CALL ME TO CHECK HIS 9303030026 930303 LETTERS TO THE EDITOR PRESCHOOLERS HUNGER FOR WORDS REGARDING JOHN HOOD'S FEB 19 EDITORIALPAGE ARTICLE WHAT'S WRONG WITH HEAD START IT IS NO SURPRISE THAT EVIDENCE SHOWS LITTLE LONGTERM BENEFITS FROM HEAD START AND MOST OTHER PRESCHOOL PROGRAMS BUT MR HOOD STOPPED SHORT OF REALLY SAYING WHY HEAD START DOESN'T WORK MOST PRESCHOOL PROGRAMS ARE LITTLE MORE THAN DAY CARE PROGRAMS WITH SOME SMALL TOKEN OF A LEARNING PROGRAM TO JUSTIFY THEIR GLORIFIED NAME OF PRESCHOOL THAT ISN'T ENOUGH PRESCHOOL CHILDREN ARE AT THE UNIQUE AGE WHEN THEY ARE INTENSELY INTERESTED IN VERBAL AND WRITTEN LANGUAGE FEW SCHOOLS TRULY CAPITALIZE ON THIS THE RESULT IS THAT KINDERGARTNERS AND FIRSTGRADERS MUST LEARN THE RUDIMENTS OF LANGUAGE THIS TASK DOES NOT HOLD THE SAME FASCINATION FOR THEM AS IT DOES FOR THREEYEAROLDS ALSO BECAUSE OF THE LATE START IN READING STUDENTS ARE INCAPABLE OF READING ABOUT SUBJECTS ON THEIR INTEREST LEVEL THEREFORE THEY DO NOT STAY EXCITED ABOUT READING AND LEARNING CHILDREN DON'T HAVE TO START READING AT THREE WE COULD START THEM WITH A SEMESTER OF READING READINESS IN KINDERGARTEN THEY WOULD LEARN MOST KIDS DO BY FIRST GRADE THOUGH THE INTENSITY AND EXCITEMENT ABOUT VERBAL AND WRITTEN LANGUAGE ARE GONE FIRSTGRADERS ARE INTRIGUED BY SPACE TRAVEL FANTASY OR DINOSAURS NOT SEE SPOT OR WHAT DOES THE B' SAY OUR THREEYEAROLDS START WITH A FUN BUT RIGOROUS FOUNDATION IN PHONICS THEY DON'T JUST LEARN THE ALPHABET THEY LEARN THE SOUNDS THE LETTERS MAKE THEY LEARN TO HEAR BEGINNING SOUNDS AND LEARN EARLY TO START BLENDING LETTERS INTO SYLLABLES AND SHORT WORDS TEACHING THE LETTERS AND SOUNDS AND BLENDING CONCEPTS TO THREEYEAROLDS REQUIRES BOTH A TECHNICALLY CORRECT CURRICULUM AND METHODS AND TECHNIQUES THAT MAKE THEM APPEALING TO THREEYEAROLDS AND THE LEARNING DOES STICK OUR FOURYEAROLDS CONTINUE WITH ADDITIONAL BLENDING BUT ALSO LEARN THE APPLICATION OF THE ONE AND TWOVOWEL RULES CONSONANT BLENDS DIGRAPHS AND APPROPRIATE SIGHT WORDS KINDERGARTNERS GO ON TO MASTER THE 36 IRREGULAR VOWEL FAMILIES THAT PLACE A TREMENDOUS PORTION OF THE ENGLISH LANGUAGE WITHIN THEIR READING CAPABILITIES THE PREPARATION OUR CHILDREN RECEIVE AT THE PRESCHOOL LEVEL HAS PROVED TO BE AN IMPORTANT FACTOR IN THEIR CONTINUED SUCCESS IN OUR SUBSEQUENT ELEMENTARY PROGRAM BUT PERHAPS EVEN MORE IMPORTANT IS THAT THE PRESCHOOL CURRICULUM DOES NOT UNDERESTIMATE THE MENTAL CAPACITY OF THE CHILDREN THERE IS NO SENSE IN STARTING CHILDREN EARLY ONLY TO UNDERESTIMATE THEIR CAPACITY AND NUMB THEM AS A HEAD START DIRECTOR FOR 26 YEARS I FOUND MR HOOD'S ARTICLE MOST DISTURBING HE CONCEDES THAT PRESCHOOLERS DO PROFIT FROM THEIR HEAD START EXPERIENCE BUT SAYS THESE GAINS ARE LOST AFTER TWO YEARS HE CONCLUDES THAT THE REASON FOR THIS LOSS IS DUE PRIMARILY TO POORLY ORGANIZED SCHOOLS AND FAMILIES WITH MULTITUDES OF PROBLEMS BUT HE FAILED TO MENTION THE PARENT INVOLVEMENT COMPONENT EACH HEAD START HAS STAFF MEMBERS WHO WORK SOLELY WITH PARENTS AND ASSIST THEM IN CONTINUING THEIR EDUCATION REFERRING THEM TO JOB TRAINING AIDING THEM IN ENROLLING IN SUBSTANCEABUSE PROGRAMS PROVIDING PARENTINGSKILLS CLASSES AND SO ON MR HOOD'S SOLUTION IS TO ELIMINATE HEAD START AND USE THE MONEY TO SUPPORT A SCHOOL VOUCHER SYSTEM FOR OLDER CHILDREN INSTEAD WE SHOULD CONTINUE THE SUCCESSES OF HEAD START AND SUSTAIN THOSE GAINS WITH LEARNING THAT IS APPROPRIATE FOR YOUNGER CHILDREN SCHOOLS NEED TO INTRODUCE DEVELOPMENTALLY APPROPRIATE TEACHING PRACTICES AT ALL LEVELS CONSIDER THE NEEDS OF EACH CHILD HAVE SMALLER CLASSES AND MORE STAFF IN EACH ROOM AND ACCEPT AND ACCOMMODATE WORKING MOTHERS HEAD START REALIZES THIS AND THAT IT IS WHY IT IS SO EFFECTIVE DON'T ELIMINATE IT BUILD ON IT IN THE YEARS THAT FOLLOW 9303030025 930303 DISNEY LEASES POND FOR ITS DUCKS NEW YORK OGDEN CORP SAID THAT WALT DISNEY CO SIGNED A 30YEAR LEASE TO USE ANAHEIM ARENA IN ANAHEIM CALIF FOR ITS NEW HOCKEY TEAM THE MIGHTY DUCKS OGDEN WHICH HANDLES LEASING MAINTENANCE AND CONCESSIONS FOR THE ANAHEIM ARENA DECLINED TO DISCLOSE THE TERMS DISNEY WILL BE THE ARENA'S MAJOR TENANT AND THE FACILITY WILL BE RENAMED THE POND DISNEY IS EXPECTED TO HAVE THE DUCKS PLAYING AT THE SITE IN TIME FOR THE NEXT HOCKEY SEASON 9303030024 930303 BUSINESS BRIEF INSTORE ADVERTISING INC GROUP IS OFFERING TO INVEST 14 MILLION FOR 70 STAKE A GROUP LED BY R L RICHARDS & CO AN INVESTMENT BANKING FIRM SAID IT MADE AN OFFER TO INVEST 14 MILLION IN INSTORE ADVERTISING INC IN EXCHANGE FOR A 70 STAKE THE GROUP HAS OFFERED TO PAY 7 MILLION FOR NEW SHARES OF THE GREENWICH CONN COMPANY THAT WOULD TOTAL 70 OF COMMON OUTSTANDING IT ALSO OFFERED TO PURCHASE 7 MILLION IN FACE AMOUNT OF NEW THREEYEAR 12 DEBENTURES AT PAR THE OFFER WILL EXPIRE FRIDAY AT 9 AM RICHARDS SAID THE NEWSHARE ISSUE WOULD TOTAL ABOUT 183 MILLION SHARES AND WOULD BRING TOTAL SHARES OUTSTANDING TO 262 MILLION BASED ON INSTORE'S JANUARY SHARES OUTSTANDING OF NEARLY 79 MILLION JOHN CAPPS CHIEF FINANCIAL OFFICER SAID THE COMPANY IS STUDYING THE OFFER AND PLANS TO RESPOND BY THIS MORNING THE COMPANY WHICH HAS A NETWORK OF COMPUTERCONTROLLED SIGNS FOR SUPERMARKETS UNTIL THIS WEEK WAS BASED IN NEW YORK 9303030023 930303 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 PHILLIPS PETROLEUM CO 100 MILLION ISSUE OF NOTES DUE MARCH 1 2003 WAS PRICED AS 665 AT 99753 TO YIELD 6684 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO BALTIMORE GAS & ELECTRIC CO 125 MILLION ISSUE OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY FIRST BOSTON CORP THE BONDS WILL BE REOFFERED AS 7 1/2 AT 99136 TO YIELD 7573 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P BELL TELEPHONE CO OF PENNSYLVANIA 225 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2033 WAS PRICED AS 7 3/8 AT 99047 TO YIELD 745 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 61 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH FIRST BOSTON CORP BELL TELEPHONE PA IS A UNIT OF BELL ATLANTIC CORP RALLY'S INC 75 MILLION ISSUE OF SENIOR NOTES DUE JUNE 15 2000 WAS PRICED AS 9 7/8 AT 98705 TO YIELD 10125 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED THROUGH PAINEWEBBER INC THE ISSUE IS RATED BA2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE HAS NOT YET BEEN RULED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION PAINEWEBBER SAYS NEW ENGLAND TELEPHONE A 225 MILLION ISSUE OF NOTES DUE MARCH 15 2003 WAS WON BY MORGAN STANLEY & CO THE NOTES WILL BE REOFFERED AS 6 1/4 AT 99399 TO YIELD 6332 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P NEW ENGLAND TELEPHONE IS A UNIT OF NYNEX CORP INTERCITY PRODUCTS CORP 140 MILLION ISSUE OF SENIOR SECURED NOTES DUE MARCH 1 2000 WAS PRICED AT PAR TO YIELD 975 THE SIZE OF THE DEAL WAS INCREASED FROM A PREVIOUSLY PLANNED 125 MILLION THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH CITICORP SECURITIES MARKETS INC THE ISSUE IS RATED BA3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE HAS NOT YET BEEN RULED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION CITICORP SAYS 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 G008 IS BACKED BY 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 850 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS THE ISSUE SETTLES MARCH 30 FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES GOLD 1490 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 710 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS THE ISSUE SETTLES APRIL 30 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES GOLD 1489 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 720 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS THE ISSUE SETTLES APRIL 30 MUNICIPAL ASSISTANCE CORP MAC FOR THE CITY OF NEW YORK 131 MILLION SERIES C REFUNDING BONDS HAVE BEEN REPRICED BY A GOLDMAN SACHS & CO GROUP DUE TO HEAVY DEMAND YIELDS FOR BONDS DUE IN 200108 WERE TRIMMED 50 BASIS POINTS YIELDS NOW RANGE FROM 250 IN 1994 TO 530 IN 2008 THE INITIAL SCALE OF YIELDS WAS 250 IN 1994 TO 535 IN 2008 MAC IS A PUBLIC BENEFIT CORPORATION OF NEW YORK STATE MOODY'S HAS RATED THE ISSUE SINGLEA AND S&P IS EXPECTED TO ASSIGN A SINGLEA RATING A DOUBLEA RATING IS ANTICIPATED FROM FITCH INVESTORS SERVICE INC SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY 1025 MILLION HOMEOWNERSHIP MORTGAGE REVENUE BONDS WERE PRICED BY A BEAR STEARNS & CO INC GROUP INCLUDED IN THE OFFERING ARE 666 MILLION SERIES 1993A BONDS WHICH WERE PRICED TO YIELD FROM 300 IN 1994 TO 600 IN 2021 THERE ARE ALSO 359 MILLION 1991 SERIES D BONDS WHICH ARE BEING REMARKETED THESE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX YIELDS RANGE FROM 320 IN 1994 TO 615 IN 2026 BOTH SERIES OF BONDS ARE EXPECTED TO BE RATED DOUBLEA BY MOODY'S AND S&P METROPOLITAN WASHINGTON DC AIRPORTS AUTHORITY 113 MILLION REVENUE AND REFUNDING BONDS WERE PRICED BY A LEHMAN BROTHERS GROUP INCLUDED IN THE ISSUE ARE 73 MILLION SERIES 1993A BONDS WHICH WERE PRICED TO YIELD FROM 210 IN 1993 TO 555 IN 2022 THERE ARE ALSO 40 MILLION SERIES 1993B BONDS WHICH ARE TAXABLE YIELDS FOR THOSE SECURITIES RANGE FROM 340 IN 1993 TO 775 IN 2022 ALL OF THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ALABAMA PUBLIC SCHOOL & COLLEGE AUTHORITY 254 MILLION SERIES 1993 REFUNDING BONDS HAVE BEEN REPRICED BY A MORGAN STANLEY & CO GROUP YIELDS FOR BONDS DUE IN 1993 1995 AND 1997 WERE LOWERED BY 50 BASIS POINTS DUE TO STRONG DEMAND HOWEVER YIELDS FOR BONDS DUE IN 200105 WERE RAISED 10 TO 20 BASIS POINTS TO ATTRACT BUYERS YIELDS NOW RANGE FROM 210 IN 1993 TO 507 IN 2005 THE INITIAL SCALE OF YIELDS WAS 220 IN 1993 TO 505 IN 2005 MOODY'S HAS RATED THE ISSUE DOUBLEA METROPOLITAN SEATTLE 1364 MILLION SEWER REVENUE REFUNDING BONDS ARE BELIEVED TO HAVE BEEN WON BY CHEMICAL SECURITIES INC YIELDS RANGE FROM 200 IN 1994 TO 560 IN 2015 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P DADE COUNTY FLA HEALTH FACILITIES AUTHORITY 1015 MILLION SERIES 1993A HOSPITAL REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 260 IN 1994 TO 562 IN 2021 THE OFFERING IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P JACKSONVILLE FLA ELECTRIC AUTHORITY 4598 MILLION REFUNDING BONDS FOR THE ST JOHNS RIVER POWER PARK SYSTEM HAVE BEEN PRICED BY A LEHMAN BROTHERS GROUP YIELDS RANGE FROM 215 IN 1993 TO 560 IN 2021 MOODY'S HAS RATED THE ISSUE DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEA RATING PROVINCE OF ONTARIO CANADA 15 BILLION CANADIAN 8 EUROBOND DUE MARCH 11 2003 AT FIXED REOFFER PRICE OF 9845 VIA MERRILL LYNCH NOMURA SCOTIAMCLEOD AND WOOD GUNDY YIELD AT REOFFER 823 SPREAD 933 BASIS POINTS ABOVE GOVERNMENT OF CANADA'S 7 1/4 NOTE DUE 2003 FEES 3/8 KINGDOM OF BELGIUM SOVEREIGN ONE BILLION MARKS OF 6 3/8 EUROBONDS DUE MARCH 30 1998 AT ISSUE PRICE 10170 VIA DEUTSCHE BANK AG REOFFERED AT 9995 TO YIELD 639 SPREAD 15 BASIS POINTS ABOVE COMPARABLE BELGIAN GOVERNMENT NOTE FEES 2 BRITISH GAS PLC UK 400 MILLION OF EUROBONDS IN TWO PARTS VIA CREDIT SUISSE FIRST BOSTON AND GOLDMAN SACHS INTERNATIONAL LTD 200 MILLION OF 7 5/8 BONDS DUE MARCH 31 2000 AT ISSUE PRICE 10155 REOFFERED AT PAR TO YIELD 7625 SPREAD 32 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT NOTE FEES 1 7/8 ALSO 200 MILLION OF 8 1/8 BONDS DUE MARCH 31 2003 AT ISSUE PRICE 10137 REOFFERED AT 9972 TO YIELD 817 SPREAD 32 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT NOTES FEES 2 EUROPEAN INVESTMENT BANK SUPRANATIONAL AGENCY 200 MILLION OF 8 EUROBONDS DUE JUNE 10 2003 VIA SAMUEL MONTAGU & CO LTD REOFFERED INITIALLY AT FIXED PRICE OF 100843 TO YIELD 787 SPREAD FIVE BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT WILL TRADE INTERCHANGEABLY WITH 400 MILLION OF IDENTICAL OUTSTANDING BONDS FEES 0325 ALL NIPPON AIRWAYS JAPAN 30 BILLION YEN VIA AN ISSUE OF 4 1/2 EUROBONDS DUE JUNE 23 1998 AT ISSUE PRICE 10170 VIA NIKKO SECURITIES CO EUROPE LTD REOFFER PRICE 100 1/8 TO YIELD 447 FEES 1 7/8 TODA CORP JAPAN 10 BILLION YEN OF 5 EUROBONDS DUE JUNE 16 2000 AT ISSUE PRICE 101 1/2 VIA NIKKO SECURITIES CO EUROPE LTD REOFFER PRICE 99975 TO YIELD 500 FEES 1 7/8 TOKYO TATEMONO CO LTD JAPAN 10 BILLION YEN OF 5 EUROBONDS DUE JUNE 23 2000 AT ISSUE PRICE 101425 VIA LEAD UNDERWRITER YAMAICHI INTERNATIONAL EUROPE LTD REOFFER PRICE 9990 TO YIELD 501 FEES 1 7/8 TOKYO TATEMONO CO LTD JAPAN 10 BILLION YEN OF 52 EUROBONDS DUE JUNE 23 2003 AT ISSUE PRICE 10130 VIA DAIWA EUROPE LTD REOFFER PRICE 9980 TO YIELD 523 FEES 2 DOWA MINING CO LTD JAPAN 120 MILLION OF 2 EUROBONDS DUE MARCH 25 1997 WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE PAR VIA NIKKO SECURITIES CO EUROPE LTD EACH 10000 BOND HAS TWO WARRANTS ATTACHED EACH EXERCISABLE FROM APRIL 8 1993 TO MARCH 18 1997 TO BUY DOWA SHARES AT AN EXPECTED 2 1/2 PREMIUM ABOVE CLOSING SHARE PRICE WHEN FINAL TERMS SET MARCH 9 GUARANTOR INDUSTRIAL BANK OF JAPAN LTD FEES 2 1/4 EUROFIMA SUPRANATIONAL AGENCY 100 MILLION OF STRUCTURED EUROBONDS DUE MARCH 30 2000 VIA LEHMAN BROTHERS INTERNATIONAL LTD COUPON PAID SEMIANNUALLY ACCORDING TO FOLLOWING FORMULA 10YEAR CONSTANCE MATURITY TREASURY CMT A REFERENCE INTEREST RATE OF THE FEDERAL RESERVE BANK MULTIPLIED BY 05 PLUS 145 BASIS POINTS MINIMUM COUPON 5 MAXIMUM 28 ISSUE PRICE PAR FEES 045 9303030022 930303 COTT CORP TO ISSUE SHARES TORONTO COTT CORP SAID IT EXPECTS TO RAISE US 32175000 FROM A PREVIOUSLY ANNOUNCED ISSUE OF 11 MILLION SHARES AT 2925 EACH THE TORONTO SOFTDRINK CONCERN WHICH CURRENTLY HAS 26 MILLION SHARES OUTSTANDING SAID THE ISSUE WILL BE UNDERWRITTEN BY FIRST MARATHON SECURITIES LTD IN CANADA AND BY OPPENHEIMER & CO IN THE US THE UNDERWRITERS ALSO HAVE AN OPTION TO PURCHASE AN ADDITIONAL 100000 SHARES COTT SAID THE COMPANY SAID PROCEEDS WILL BE USED FOR WORKING CAPITAL AND EXPANSION OF ITS BOTTLING CAPACITY 9303030019 930303 BUSINESS BRIEF INMAC CORP CHARGE CONTRIBUTED TO LOSS FOR FISCAL SECOND QUARTER INMAC CORP SANTA CLARA CALIF SAID A ONETIME CHARGE FOR RESTRUCTURING CONTRIBUTED TO A NET LOSS OF 177 MILLION OR 186 A SHARE IN ITS FISCAL SECOND QUARTER ENDED JAN 23 IN THE YEARAGO PERIOD INMAC POSTED A NET LOSS OF 17 MILLION OR 18 CENTS A SHARE FOR THE QUARTER INMAC'S SALES ROSE 59 TO 828 MILLION FROM YEAREARLIER SALES OF 782 MILLION THE MARKETER OF COMPUTER EQUIPMENT SAID IT POSTED A CHARGE OF 149 MILLION RELATED TO A SHUTDOWN OF UNPROFITABLE OPERATIONS A RESERVE FOR THE WRITEDOWN OF CERTAIN ASSETS AND SERVERANCE CHARGES INCLUDED IN THE CHARGE ARE COSTS ASSOCIATED WITH THE CLOSING OF THE COMPANY'S OPERATIONS IN JAPAN CERTAIN CONSOLIDATIONS IN THE US AND THE LAYOFF OF ABOUT 10 OF ITS WORLDWIDE WORK FORCE INMAC CURRENTLY EMPLOYS ABOUT 1300 STARTUP COSTS FOR CERTAIN STORES IN THE UNITED KINGDOM ALSO HURT RESULTS FOR THE SIX MONTHS INMAC POSTED A NET LOSS OF 174 MILLION OR 184 A SHARE ON SALES OF 1645 MILLION COMPARED WITH A YEAREARLIER NET LOSS OF 16 MILLION OR 17 CENTS A SHARE ON SALES OF 1495 MILLION 9303030018 930303 BUSINESS BRIEFS ABB INC RECEIVED A CONTRACT VALUED AT ABOUT 40 MILLION TO SUPPLY POWER GENERATION COMPONENTS FOR A COGENERATION FACILITY TO BE BUILT IN FREEHOLD NJ THE PLANT WILL SUPPLY PROCESS STEAM TO NESTLE BEVERAGE CO'S FREEZEDRIED COFFEE OPERATION AND ELECTRICITY FOR JERSEY CENTRAL POWER & LIGHT ABB IS A UNIT OF ABB GROUP INTERMETRICS INC WAS AWARDED A FIVEYEAR CONTRACT FROM THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION VALUED AT 194 MILLION TO CONTINUE PERFORMING INDEPENDENT VERIFICATION AND VALIDATION SERVICES RELATED TO SPACE SHUTTLE AVIONICS AND SOFTWARE SUN MICROSYSTEMS INC SAID ITS SUNSOFT INC UNIT WILL ESTABLISH A EUROPEAN SOFTWARE CENTRE IN DUBLIN IRELAND THE NEW CENTER IS SCHEDULED TO OPEN THIS SUMMER BANC ONE CORP SAID REGULATORS APPROVED ITS PREVIOUSLY ANNOUNCED ACQUISITIONS OF VALLEY NATIONAL CORP KEY CENTURION BANCSHARES AND FIRST COMMUNITY BANCORP MEDICIS PHARMACEUTICAL CORP WILL ENTER INTO AN AGREEMENT WITH KIEV UKRAINE AND OTHERS TO SUPPLY ITS PRESCRIPTION AND OVERTHECOUNTER LINE TO A CLINIC IN UKRAINE GENERAL ELECTRIC CO'S POWER GENERATION BUSINESS SAID THE TENNESSEE VALLEY AUTHORITY CHATTANOOGA HAS ALLOCATED 2134 MILLION TO GE FOR POWERRELATED CONTRACTS ALLIED WASTE INDUSTRIES INC AGREED TO ACQUIRE THREE PRIVATELY HELD SOLIDWASTE MANAGEMENT COMPANIES IN THE SOUTHEASTERN US FOR 105 MILLION 9303030017 930303 POLITICS & POLICY PEROT TAKES ISSUE WITH CLINTON'S PLAN AS PANEL SEES REVENUE OFF 25 BILLION BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TEXAS BILLIONAIRE ROSS PEROT CHALLENGED PRESIDENT CLINTON'S ECONOMIC PLAN WHICH FACED NEW QUESTIONS AS WELL FROM TAX ESTIMATES SHOWING A REVENUE SHORTFALL OF MORE THAN 25 BILLION IN THE ADMINISTRATION'S FIVEYEAR BUDGET THE NEW FIGURES COMPILED BY CONGRESS'S JOINT COMMITTEE ON TAXATION STEM FROM OFTEN LONGHELD ESTIMATING DIFFERENCES BETWEEN CONGRESS AND THE TREASURY BUT ARE SURE TO BE SEIZED UPON BY REPUBLICANS AS A SIGN OF WEAKNESS IN THE ADMINISTRATION'S DEFICITREDUCTION PLAN MR PEROT'S COMMENTS REFLECTING A HARDER TONE THAN IN THE PAST TOOK AIM AT THE PRESIDENT'S 16 BILLIONPLUS ECONOMICSTIMULUS BILL WHICH THE TEXAN SAID WOULD CREATE ONLY TEMPORARY BUBBLE JOBS AT A TIME WHEN THE NATION IS TRILLIONS OF DOLLARS IN DEBT THE AVERAGE CITIZEN HAS FIGURED OUT THAT IF FOUR TRILLION DOLLARS DIDN'T JUMPSTART OUR ECONOMY ADDITIONAL FEDERAL EXPENDITURES TO CREATE JOBS WILL NOT BE THE ANSWER THE SELFPROCLAIMED POPULIST TOLD A HOUSESENATE COMMITTEE ON CONGRESSIONAL REFORM IN CAUSTIC ASIDES HE DESCRIBED THE CLINTON WHITE HOUSE AS ON A STEEP LEARNING CURVE AND DOMINATED BY PHDS WHOSE LACK OF PRACTICAL BUSINESS EXPERIENCE THREATENS THE LONGTERM GOALS OF THE CLINTON ECONOMIC PLAN APPEARING BEFORE A HOUSESENATE COMMITTEE ON CONGRESSIONAL REFORM MR PEROT TOLD LAWMAKERS THAT HIS OWN POLITICAL MOVEMENT WOULD LAUNCH A PORK OF THE MONTH FEATURE TO HIGHLIGHT WHAT HE SEES AS WASTEFUL SPENDING THE BILLIONAIRE LACED HIS COMMENTS WITH PRAISE AS WELL FOR THOSE ON THE PANEL BUT HIS PENCHANT FOR ATTACKING MR CLINTON PROVOKED A REBUKE FROM SEN HARRY REID D NEV WHO REMINDED MR PEROT THAT THE PRESIDENT'S CHIEF OF STAFF THOMAS MACK MCLARTY IS A FORMER BUSINESSMAN MAYBE YOU'VE GOTTEN SO ENTHUSED ABOUT APPLAUSE YOU DON'T LISTEN TO THE FACTS SEN REID TOLD THE TEXAN MR CLINTON HIMSELF CAME TO THE CAPITOL YESTERDAY TO MEET WITH HOUSE AND SENATE REPUBLICANS BUT DEMOCRATIC LEADERS SHOW NO SIGNS OF BACKING AWAY FROM PLANS TO PRESS AHEAD WITH THE ADMINISTRATION'S BUDGET THIS MONTH SENATE REPUBLICANS TREATED THE PRESIDENT TO ONE OF HIS BELOVED FASTFOOD HAMBURGERS AND GAVE HIM A 250 CHECK TO HELP BUILD A WHITE HOUSE JOGGING TRACK FOR HIS PART MR CLINTON MARKED HOUSE MINORITY LEADER BOB MICHEL'S 70TH BIRTHDAY WITH A CAKE AND A VINTAGE 1914 CHICAGO CUBS HAT THE AURA OF GOOD FEELING DID LITTLE TO DEFUSE OVERWHELMING GOP OPPOSITION TO THE CLINTON ADMINISTRATION'S PACKAGE HOWEVER AND REPUBLICANS REITERATED THEIR CLAIM THAT IT FAVORS HIGHER TAXES WHILE REMAINING SHORT OF SPENDING CUTS AND SPECIFICS I DON'T THINK HE GAINED ANY GOP VOTES AND I DON'T THINK HE WILL GAIN ANY VOTES UNTIL WE SEE THE SPECIFICS SAID IDAHO SEN LARRY CRAIG WE'RE BEING ASKED TO BUY A PIG IN A POKE SAID OHIO REP JOHN KASICH THE RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE MATCHED AGAINST THIS CRITICISM IS A GROWING CONFIDENCE IN THE DEMOCRATIC LEADERSHIP THAT IT HAS THE SUPPORT AMONG THE PARTY'S RANKANDFILE MEMBERS HOUSE SPEAKER THOMAS FOLEY D WASH DESCRIBED A WHITE HOUSE MEETING YESTERDAY MORNING AS VERY UPBEAT AND SAID THERE IS NOT ONLY STRONG SUPPORT IN CONGRESS BUT VERY STRONG SUPPORT REPORTED BY MEMBERS FROM THEIR CONSTITUENCIES MR FOLEY CHIDED REPUBLICANS FOR COMPLAINING THAT THEY WERE BEING RUSHED TO A VOTE AND REMINDED REPORTERS THAT THE GOP ALSO HAD COMPLAINED WHEN THE DEMOCRATIC LEADERSHIP MADE THE HOUSE VOTE ON FORMER PRESIDENT BUSH'S BUDGET THAT WAS A TERRIBLE PARTISAN THING TO DO THEY SAID SAID THE SPEAKER NOW IT IS GOING TO BE A CRIME FOR DEMOCRATS TO VOTE ON A DEMOCRATIC PRESIDENT'S BUDGET TOGETHER WITH THE ADMINISTRATION HOUSE DEMOCRATS ARE WORKING TO FINETUNE THE PLAN BY SEEKING ANOTHER 3 BILLION IN SPENDING CUTS FOR FISCAL 1994 WHICH BEGINS OCT 1 ADDITIONAL SAVINGS OF THAT MAGNITUDE WOULD BRING THE ADMINISTRATION'S DISCRETIONARY SPENDING FOR DOMESTIC PROGRAMS UNDER THE CAPS SET BY THE 1990 BUDGET DEAL AND WOULD BE A NOD TOWARD MODERATE AND CONSERVATIVE DEMOCRATS CALLING FOR MORE CUTS THE SEARCH FOR MORE CUTS CAME AS CONGRESSIONAL BUDGET OFFICE DIRECTOR ROBERT REISCHAUER CAST DOUBT ON THE CLINTON ADMINISTRATION'S HOPES THAT HEALTHCARE REFORM WOULD PRODUCE SAVINGS OF 200 BILLION OVER 10 YEARS TO SHRINK THE DEFICIT MR REISCHAUER SAID THAT GOAL WOULD BE EXCEEDINGLY DIFFICULT TO REALIZE IF THE ADMINISTRATION PLAN MOVES TO COVER AMERICANS NOW UNINSURED REDUCES HIGH MEDICAL COSTS FOR INSURED AMERICANS AND MAINTAINS ALL OF THE OTHER DESIRABLE ASPECTS OF THE CURRENT SYSTEM THE WHITE HOUSE HASN'T FINISHED ITS HEALTHCARE REFORM PLAN BUT CHARTS IN MR CLINTON'S BAREBONES BUDGET SUGGESTED THAT THE PLAN MIGHT REDUCE GOVERNMENT SPENDING ON HEALTH CARE OVER THE NEXT SEVEN YEARS AS MUCH AS 272 BILLION FROM PROJECTED LEVELS THE PERSON IN CHARGE OF DEVELOPING THE ADMINISTRATION'S HEALTH PROPOSAL HILLARY RODHAM CLINTON WENT TO CAPITOL HILL YESTERDAY TO ASSURE MEMBERS OF THE BLACK AND HISPANIC CONGRESSIONAL CAUCUSES THAT SHE WOULD INCLUDE THEM IN DISCUSSIONS ON OVERHAULING THE NATION'S HEALTHCARE SYSTEM MRS CLINTON MET MORE THAN AN HOUR WITH EACH OF THE GROUPS BUT GAVE FEW HINTS ABOUT THE ADMINISTRATION'S PLANS IN DEALING WITH THE OVERALL BUDGET THE DISCREPANCIES IN REVENUE ESTIMATES SHOWN BY THE JOINT COMMITTEE ON TAXATION APPEAR TO POSE MORE OF A POLITICAL THAN SUBSTANTIVE PROBLEM FOR THE ADMINISTRATION THE LARGEST AREA OF DISPUTE ABOUT 14 BILLION HAS TO DO WITH THE RECEIPTS GENERATED BY HIGHER INCOMETAX RATES ON THE WEALTHY OVER THE YEARS THE CONGRESSIONAL COMMITTEE HAS TRADITIONALLY BEEN MORE CAUTIOUS IN PREDICTING WHAT ADDED MONEY WILL BE COLLECTED SIMILARLY THE ADMINISTRATION TOOK CREDIT FOR AS MUCH AS 8 BILLION IN ADDED REVENUES FROM INITIATIVES TO INCREASE TAXPAYER COMPLIANCE WHILE THE COMMITTEE'S STAFF PUT THE NUMBER AT CLOSER TO 800 MILLION A THIRD AREA OF DISPUTE DEALS WITH THE TREASURY'S TRANSFERPRICING INITIATIVE AFFECTING MULTINATIONAL COMPANIES AND HERE THE CONGRESSIONAL COMMITTEE IS ABOUT 3 BILLION LESS THAN THE ADMINISTRATION'S ESTIMATE LAURIE MCGINLEY CONTRIBUTED TO THIS ARTICLE 9303030016 930303 INTERNATIONAL RUSSIAN LAWMAKERS OPPOSED TO START II PLEDGE FIGHT AS HEARINGS ON PACT BEGIN BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN LAWMAKERS OPPOSED TO START II PROMISED A BIG FIGHT AS PARLIAMENTARY HEARINGS ON THE USRUSSIAN NUCLEARARMSREDUCTION TREATY GOT UNDER WAY IN THE PRESENT CONDITION I DON'T THINK START II WILL PASS SAID IONA ANDRONOV DEPUTY CHAIRMAN OF PARLIAMENT'S FOREIGN AFFAIRS COMMITTEE AND AN OUTSPOKEN GOVERNMENT CRITIC THE START II TREATY SIGNED JAN 3 BY RUSSIAN PRESIDENT BORIS YELTSIN AND PRESIDENT BUSH WOULD REDUCE BOTH COUNTRIES' STOCKPILES OF LONGRANGE NUCLEAR WARHEADS TO ABOUT ONETHIRD OF CURRENT LEVELS THE TREATY REQUIRES THE APPROVAL OF LAWMAKERS IN THE US AND RUSSIA AS WELL AS IN THE FORMER SOVIET REPUBLICS OF BELARUS UKRAINE AND KAZAKHSTAN WHICH HAVE AGREED TO TURN OVER THEIR NUCLEAR WEAPONS TO RUSSIA RUSSIAN FOREIGN MINISTER ANDREI KOZYREV A TARGET OF CRITICISM FOR ALLEGEDLY PROUS LEANINGS MADE THE GOVERNMENT'S CASE YESTERDAY ON BEHALF OF THE TREATY HE WARNED PARLIAMENT THAT FAILURE TO RATIFY THE PACT WOULD MEAN A RETURN TO A POLICY OF CONFRONTATION WITH THE US THE ONLY ALTERNATIVE FOR RUSSIA HE SAID WOULD BE UNILATERAL NUCLEAR SURRENDER MR KOZYREV ALSO EXPRESSED CONCERNS ABOUT UKRAINE WHOSE LEGISLATORS STILL HAVE YET TO RATIFY START I AN EARLIER STRATEGICARMSREDUCTION TREATY UKRAINE HAS OFTEN STATED ITS INTENTION TO GIVE UP THE SOVIET NUCLEAR WEAPONS STILL ON ITS SOIL BUT IT HAS TAKEN FEW CONCRETE STEPS TO FOLLOW THROUGH ON THAT PLEDGE UKRAINE'S STANCE ON START I AND NUCLEAR NONPROLIFERATION REMAINS DUBIOUS MR KOZYREV SAID AND CAUSES GROWING ALARM IN RUSSIA AND ABROAD SUCH CONCERN WAS SECONDED BY RUSSIAN DEFENSE MINISTER PAVEL GRACHEV WHO TRIED TO THREATEN UKRAINE INTO YIELDING TO MOSCOW ON THE QUESTION OF CONTROL OVER STRATEGIC WEAPONS ON UKRAINIAN SOIL IF THE CURRENT TALKS BETWEEN RUSSIA AND UKRAINE ON THOSE WEAPONS FAIL TO PRODUCE AN AGREEMENT MR GRACHEV SAID HE WILL RELEASE A STATEMENT AIMED AT EMBARRASSING KIEV THE THREAT ESCALATES THE DISPUTE OVER WHETHER UKRAINE IS COMMITTED TO BECOMING NUCLEARFREE RUSSIAN MILITARY OFFICIALS RECENTLY LEAKED TO A MOSCOW JOURNALIST A TELEGRAM THAT INDICATES UKRAINE HAS SET UP AN ADMINISTRATIVE CONTROL CENTER FOR NUCLEAR FORCES IN ITS DEFENSE MINISTRY TO THE RUSSIANS CREATION OF THIS BODY AMOUNTS TO A UNILATERAL DECLARATION OF UKRAINE'S NUCLEAR STATUS BUT UKRAINIAN OFFICIALS CONTEND IT IS SIMPLY A TEMPORARY BODY TO ENSURE THAT THE WEAPONS ARE MAINTAINED SAFELY AS THAT DISPUTE DRAGS ON RUSSIA IS LIKELY TO FACE AN EQUALLY BITTER STRUGGLE WITHIN ITS OWN BORDERS AS IT TRIES TO PERSUADE ITS RECALCITRANT PARLIAMENT THE SUPREME SOVIET TO RATIFY START II MR ANDRONOV THE MAN WHO PROMISES A BIG FIGHT IN THE RUSSIAN LEGISLATURE SAID IN AN INTERVIEW AFTER YESTERDAY'S SESSION THAT MANY OF HIS COLLEAGUES BELIEVE THE TREATY IS UNFAVORABLE TO RUSSIA AND THAT MOSCOW GAVE UP TOO MUCH THEY COMPLAIN IN PARTICULAR THAT WHILE SART II ELIMINATES LONGRANGE LANDBASED MISSILES WITH MULTIPLE NUCLEAR WARHEADS THE BULWARK OF RUSSIA'S NUCLEAR ARSENAL IT DOESN'T COVER SEABASED MISSILES THEREBY PRESERVING THE AMERICANS' DEADLY SUBMARINEBASED NUCLEAR ARSENAL WE'RE LOSING ALMOST EVERYTHING WHILE THE US DOES QUITE NICELY SAID MR ANDRONOV OTHER MEMBERS OF PARLIAMENT FEAR THAT THE COSTS OF THE TREATY ARE PROHIBITIVE BY ONE ESTIMATE THE TWIN PROCESS OF DISARMING PROSCRIBED WEAPONS AND THEN RESTRUCTURING RUSSIA'S STRATEGIC FORCES COULD COST AS MUCH AS 5 BILLION MUCH OF THAT WOULD GO TOWARD BEEFING UP NAVAL AND AIR SEGMENTS OF RUSSIA'S STRATEGIC FORCES OR PRODUCING NEW INTERCONTINENTAL BALLISTIC MISSILES NOT COVERED BY THE TREATY BUT THE GOVERNMENT BELIEVES START II WILL SAVE RUSSIA BILLIONS OF DOLLARS OVER THE LONG TERM WHILE IT MAY BE FASHIONABLE IN THE US TO SAY THAT THE COLD WAR IS OVER MR ANDRONOV NOTES THAT EVEN PRESIDENT CLINTON'S SECRETARY OF STATE WARREN CHRISTOPHER HAS SAID THAT THE USE OF FORCE REMAINS A PART OF US FOREIGN POLICY I'M NOT SAYING THE US WILL BEGIN A NUCLEAR WAR AGAINST RUSSIA HE SAID IF WE DISARM ALMOST COMPLETELY IT WON'T BE NECESSARY WE'LL BE ABSOLUTELY HELPLESS PRESIDENT CLINTON IS EXPECTED TO PRESS THE RUSSIAN LEADER TO MOVE QUICKLY TOWARD RATIFICATION OF THE TREATY DURING THEIR APRIL 4 SUMMIT MEETING ANY DIFFICULTIES WITH THE TREATY COULD MAKE IT HARDER FOR MR CLINTON TO RALLY PUBLIC AND CONGRESSIONAL SUPPORT FOR NEW AID TO RUSSIA 9303030015 930303 BUSINESS BRIEF COVENANT MUTUAL INSURANCE CO CONNECTICUT SEIZES COMPANY WITH BIG HURRICANE LOSSES CONNECTICUT REGULATORS SEIZED A SMALL INSURANCE COMPANY THREATENED WITH INSOLVENCY FROM HURRICANE ANDREW LOSSES THE COMPANY COVENANT MUTUAL INSURANCE CO IS THE 10TH INSURER TO FAIL BECAUSE OF ANDREW THE COMPANY WHICH HAD 40 MILLION IN ASSETS A YEAR AGO WROTE MOST OF ITS BUSINESS IN FLORIDA LOSSES FROM THE STORM ERODED ITS SURPLUS FROM 272 MILLION IN JUNE TO ONLY 22 MILLION AT YEAR END CONNECTICUT OFFICIALS HOPE TO FIND A WAY TO SAVE THE COMPANY FROM LIQUIDATION THE COMPANY HAS SUSPENDED CLAIMS PAYMENTS WHILE OFFICIALS EVALUATE ITS CONDITION REGULATORS SAID THE COMPANY HAD 2600 PERSONAL INSURANCE POLICIES AND 750 COMMERCIAL POLICIES IN FLORIDA AND ONLY A HANDFUL OF POLICIES IN ITS HOME STATE 9303030014 930303 WHO'S NEWS SONY CORP SONY CORP TOKYO WILLIAM SUMNER WAS NAMED SENIOR VICE PRESIDENT INFORMATION SYSTEMS OF THE SONY PICTURES ENTERTAINMENT SUBSIDIARY BASED IN CULVER CITY CALIF MR SUMNER 50 YEARS OLD SUCCEEDS PETER SCHEMENTE WHO RESIGNED 9303030013 930303 MARKETING BRIEF NOTED TV CAPITAL CITIES/ABC INC SAID RUSSIAN STATE RADIO & TELEVISION HAS BEEN LICENSED TO BROADCAST VARIOUS ABC PROGRAMS TERMS WEREN'T DISCLOSED PROGRAMMING WILL BE ADVERTISER SUPPORTED AND AIR TIME WILL BE AVAILABLE TO FOREIGN AND RUSSIAN ADVERTISERS RUSSIAN TELEVISION IS AVAILABLE IN 79 OF THE COMMONWEALTH OF INDEPENDENT STATES WHICH HAS A POTENTIAL AUDIENCE OF 227 MILLION 9303030012 930303 REVIEW & OUTLOOK EDITORIAL EASY ALAN WE KEEP READING THAT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS SOMEHOW ENDORSED CLINTONOMICS AND THAT HE'S EVEN PROMISED TO COUNTER ANY RESULTING SLOWDOWN WITH EASY MONEY IF ANYONE IN THE WHITE HOUSE REALLY BELIEVES THIS HE OR SHE IS IN FOR A SHOCK WE SAY THIS HAVING WATCHED AND LARGELY ADMIRED MR GREENSPAN'S ECONOMIC VIEWS FOR MORE THAN 20 YEARS AT THE FED MR GREENSPAN HAS STEERED AROUND SUCH DANGEROUS SHOALS AS THE STOCK MARKET CRASH OF 1987 AND A BUSH ADMINISTRATION THAT BADGERED HIM TO GUN THE MONEY SUPPLY SO THAT IT COULD WIN REELECTION THE FED'S STEADY NONINFLATIONARY MONETARY POLICY IS IN OUR VIEW ONE OF THE GREAT UNDERLYING STRENGTHS OF THE ECONOMY NOW MR GREENSPAN ISN'T ABOUT TO SACRIFICE SUCH HARDEARNED GAINS BY RETURNING TO THE EASYMONEY POLICIES OF THE 1970S THIS VIEW OF COURSE RUNS COUNTER TO THE CONVENTIONS OF THE DAY MOST REPORTERS HAVE BEEN WRITING ABOUT JUST SUCH A HIGHERTAXESFOREASYMONEY DEAL THEY CITE MR GREENSPAN'S RECENT TESTIMONY TO CONGRESS IN WHICH HE CALLED THE CLINTON PLAN CREDIBLE IN REDUCING THE DEFICIT BECAUSE IT IS VERY SPECIFIC THE WHITE HOUSE CROWED IT ALSO MANAGED THE POLITICALLY SYMBOLIC FEAT OF HAVING HILLARY CLINTON INVITE THE CHAIRMAN TO SIT NEXT TO HER FOR ALL THE WORLD TO SEE DURING THE STATE OF THE UNION ADDRESS PRESUMABLY ALL THIS WAS SUPPOSED TO BE REASSURING SENATE FINANCE CHAIRMAN PAT MOYNIHAN TOLD CNN'S EVANS AND NOVAK THAT IT COULDN'T HAVE BEEN MORE CLEAR FROM CHAIRMAN GREENSPAN'S TESTIMONY THAT HE SEES EASING MONEY AS PART OF THE BARGAIN IT'D BE HIS END OF THE BARGAIN IT'S DANGEROUS TO SAY A CENTRAL BANKER COULDN'T HAVE BEEN MORE CLEAR FOR EXAMPLE THE MOMENT AFTER HE USED THE WORD CREDIBLE MR GREENSPAN STRESSED IN HIS TESTIMONY THAT HE FAVORS SPENDING CUTS OVER TAXES TO REDUCE THE DEFICIT THERE APPEARS TO BE A GREATER TENDENCY OF DEFICIT REDUCTION TO STICK FROM THE EXPENDITURE SIDE THAN FROM THE TAX SIDE HE SUGGESTED HE ALSO DESCRIBED THE CLINTON PLAN AS CONTRACTIONARY MORE SIGNIFICANT MR GREENSPAN OPENED HIS TESTIMONY WITH A LONG EXPLANATION ABOUT WHY EASY MONEY IS NO SUBSTITUTE FOR SOUND FISCAL POLICY IN THE LOWINFLATION ERA OF THE 1950S AND 1960S A MONETARY BOOST TO GROWTH MIGHT HAVE BEEN POSSIBLE HE SAID BUT IN THE 1970S THE DAM EVENTUALLY BURST WATCHING THEIR BOND VALUES FALL MR GREENSPAN SAID SENSITIZED INVESTORS AND FINANCIAL MARKETS TO THE SLIGHTEST SIGN REAL OR IMAGINED OF RISING INFLATION AT THE FIRST SIGN NOW THAT THE FED WAS RETURNING TO EASY MONEY RATHER THAN KEEPING THE PRICE LEVEL STABLE THE BOND MARKETS WOULD SEND LONGTERM RATES SOARING UNDERMINING THE EXPANSION THAT EASIER MONEY IS SUPPOSED TO FOSTER IN PLAINER ENGLISH MR GREENSPAN WAS INFORMING CONGRESS AND THE WHITE HOUSE THAT HE AND THE MARKETS WERE AWAKE DURING THE 1970S THE PHILLIPS CURVE TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT DOESN'T WORK THE FED CAN'T ACCOMMODATE CARTERNOMICS II EVEN IF IT WANTED TO WE THINK THIS HELPS TO EXPLAIN WHY MR GREENSPAN HAS BEEN PLAYING SO COY WITH MR CLINTON'S ECONOMIC PLANS HE KNOWS THAT SOONER OR LATER THIS WHITE HOUSE WILL PROD HIM AWAY FROM STANDING SENTINEL OVER THE PRICE LEVEL AND TOWARD HELPING THE ECONOMY BY NOT CLASHING WITH A NEW PRESIDENT NOW MR GREENSPAN WINS SOME RUNNING ROOM TO SHOW HIS INDEPENDENCE LATER WHEN THE PRESSURE ARRIVES IN ANY EVENT FED CHAIRMEN DON'T USUALLY WIN BATTLES WITH PRESIDENTS OR CONGRESS SUCH DEMOCRATIC LIBERALS AS DAVID OBEY AND DON RIEGLE HAVE BEEN COMBINING THEIR OWN PLEAS FOR EASY MONEY WITH HINTS THAT THE FED COULD UNDERGO THIS OR THAT REFORM IF IT DOESN'T PLAY BALL WITH CLINTONOMICS THE WHITE HOUSE HASN'T JOINED SUCH THREATS BUT HASN'T RENOUNCED THEM EITHER MR GREENSPAN WILL NOT WANT TO GO DOWN IN HISTORY AS THE CHAIRMAN WHO LOST THE FED'S INDEPENDENCE THE MAIN POINT HERE IS THAT A FISCAL POLICY THAT PUNISHES SAVING AND INVESTMENT WILL HAVE ONLY ITSELF TO BLAME FOR THE CONSEQUENCES THE CLINTON ECONOMIC POLICY IS GOING TO HAVE TO SINK OR SWIM WITHOUT THE FED'S HELP 9303030011 930303 WHO'S NEWS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY JANE MELVILLE 48 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENT OF THE STERLING WINTHROP DRUG UNIT SHE RETAINS HER TITLES AS VICE PRESIDENT OF MANUFACTURING SERVICES AND PRESIDENT OF STERLING ORGANICS THE UNIT'S BULK CHEMICALS MANUFACTURING BUSINESS 9303030010 930303 CLINTON TO APPOINT GORE TO STREAMLINE FEDERAL BUREAUCRACY WASHINGTON PRESIDENT CLINTON PLANS TO APPOINT VICE PRESIDENT ALBERT GORE TO LEAD AN EFFORT TO STREAMLINE THE FEDERAL BUREAUCRACY THE NEW INITIATIVE WHICH MR CLINTON IS SCHEDULED TO ANNOUNCE TODAY WILL INCLUDE CONDUCTING NATIONAL PERFORMANCE REVIEWS OF GOVERNMENT AGENCIES AND DEPARTMENTS DEE DEE MYERS THE WHITE HOUSE SPOKESWOMAN SAID MR CLINTON WILL BE JOINED FOR THE ANNOUNCEMENT BY DAVID OSBORNE WHO ADVOCATES APPLYING BUSINESS METHODS TO GOVERNMENT IN HIS BOOK REINVENTING GOVERNMENT THE VICE PRESIDENT WILL PLAY A LEADERSHIP ROLE IN REINVENTING GOVERNMENT OR MAKING GOVERNMENT PERFORM BETTER A SENIOR WHITE HOUSE OFFICIAL SAID THE PRESIDENT HOPES THE EFFORT BESIDES IMPROVING HOW GOVERNMENT WORKS WILL BUTTRESS HIS IMAGE AS A NEW KIND OF DEMOCRAT OPPOSED TO THE OLDSTYLE BIG GOVERNMENT APPROACH TRADITIONALLY FAVORED BY HIS PARTY ALTHOUGH MANY ATTEMPTS TO REORGANIZE THE GOVERNMENT HAVE FAILED CLINTON AIDES INSIST THIS WILL BE A SERIOUS EFFORT THEY SAID THEY VIEW IT AS AN IMPORTANT JOB FOR THE VICE PRESIDENT NOT A CEREMONIAL TASK PART OF THE PROJECT WILL BE TO FIND WASTE AND FRAUD AS WELL AS MAKE THE GOVERNMENT RUN MORE EFFICIENTLY FOR INSTANCE ONE WHITE HOUSE AIDE SAID ONE GOAL MIGHT BE TO REDUCE THE TIME IT TAKES TO PROVIDE COMMUNITY AND ECONOMIC DEVELOPMENT GRANTS TO DISTRESSED AREA THE OFFICIAL SAID THAT WHILE BUSINESS HAS ADOPTED SLIMMER MANAGEMENT STRUCTURES AND NEW TECHNOLOGY THE GOVERNMENT JUST PLODS ALONG WASTING MONEY THE IDEA OF PERFORMANCE REVIEWS OF FEDERAL AGENCIES IS BORROWED FROM TEXAS WHERE THE STATE COMPTROLLER OUTLINED MORE THAN 4 BILLION IN POTENTIAL SAVINGS FROM THE STATE BUDGET FOLLOWING AN AUDIT OF THE GOVERNMENT TWO YEARS AGO 9303030009 930303 ECONOMY KEY INDICATOR OF THE ECONOMY INCHES UP 01 SMALL INCREASE IN JANUARY AUGURS SLOW RECOVERY NEWHOME SALES DROP BY LUCINDA HARPER AND ALBERT R KARR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A KEY GOVERNMENT INDICATOR OF THE FUTURE HEALTH OF THE ECONOMY ROSE 01 IN JANUARY A SIGN THAT THE RECOVERY WILL CONTINUE TO BE SLOW THE SMALL CLIMB IN THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS FOLLOWS REVISED INCREASES OF 17 IN DECEMBER AND 07 IN NOVEMBER THE COMMERCE DEPARTMENT ALSO REPORTED THAT NEWHOME SALES PLUMMETED 138 IN JANUARY ERASING ALL THE INCREASE IN SALES THAT HAS OCCURRED SINCE MAY OF LAST YEAR THE DROP WHICH WAS THE BIGGEST IN 11 YEARS FOLLOWED A REVISED 47 RISE IN DECEMBER FIVE OF THE COMMERCE DEPARTMENT'S 11 LEADING INDICATORS CONTRIBUTED TO THE RISE IN THE INDEX THEY WERE THE CHANGE IN MANUFACTURERS' UNFILLED ORDERS THE CHANGE IN SENSITIVE MATERIALS PRICES THE AVERAGE WORKWEEK THE PACE OF DELIVERIES AND MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AND MATERIALS THE INDICATORS THAT HURT THE INDEX WERE THE MONEY SUPPLY INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE CONSUMER EXPECTATIONS BUILDING PERMITS CONTRACTS AND ORDERS FOR PLANT AND EQUIPMENT AND STOCK PRICES ROGER GLUNT PRESIDENT OF THE NATIONAL ASSOCIATION OF HOME BUILDERS CALLED THE SALES PLUNGE A TEMPORARY SETBACK IT WAS PARTLY WEATHERRELATED HE SAID BLAMING HEAVY RAINS IN THE WEST AND COLD SNOWY WEATHER IN THE NORTHEAST WHERE HOME SALES FELL 28 AND 39 RESPECTIVELY ALSO THE DECEMBER LEVEL WAS ABNORMALLY HIGH SAID MR GLUNT WHO IS PRESIDENT OF GLUNT BUILDING CO A TURTLE CREEK PA BUILDER DECEMBER SALES WERE BOLSTERED BY CONSUMERS' POSTELECTION EUPHORIA HE ASSERTED THE JANUARY DECREASE IN HOME SALES TO AN ANNUAL RATE OF 561000 WAS THE LARGEST SINCE A 195 DECLINE IN JANUARY 1982 A COMMERCE DEPARTMENT SPOKESMAN SAID THE LEVEL OF SALES WAS THE LOWEST SINCE THE 552000 IN MAY 1992 IN DECEMBER THE COMMERCE DEPARTMENT BEGAN CALCULATING NEWHOME SALES TO BETTER REFLECT HOUSES SOLD BEFORE A PERMIT IS ISSUED THE NEW METHOD SHOULD REDUCE MUCH BUT NOT ALL OF THE NEED TO MAKE REVISIONS TO PRELIMINARY ESTIMATES WHICH HAD LATELY BEEN CONSISTENTLY UPWARD THE DEPARTMENT SAID THE SUPPLY OF NEW HOMES FOR SALE ROSE 105 TO AN AVERAGE 57 MONTHS AT THE END OF JANUARY THE MEDIAN PRICE OF NEW HOUSES SOLD IN JANUARY FELL TO 117000 FROM 125000 IN DECEMBER ALL THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 01 INCREASE IN THE INDEX FOR JANUARY AND A 17 INCREASE FOR DECEMBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR JANUARY AND THE CHANGE FROM DECEMBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 120 UP FROM 119 IN THE PREVIOUS MONTH 9303030008 930303 BUSINESS BRIEF NORTHWEST AIR RAISES SOME FARES 5 OFFERS SHORTTERM DISCOUNT ST PAUL MINN NORTHWEST AIRLINES TRYING TO RAISE CASH AND RAISE AIR FARES INCREASED ITS LEISURE FARES BY 5 THEN OFFERED SHORTTERM DISCOUNTS OF AS MUCH AS 40 OFF THOSE FARES MOST OTHER MAJOR AIRLINES MATCHED THE FARE SALEIN MARKETS WHERE THEY COMPETE WITH NORTHWESTAND USAIR EXTENDED THE SALE UNTIL MONDAY NORTHWEST'S SALE WAS SCHEDULED TO EXPIRE TODAY THE DISCOUNT FARES REQUIRE A 14DAY ADVANCE PURCHASE SATURDAY NIGHT STAY AND ARE FOR TRAVEL THROUGH JUNE 30 BUT NORTHWEST A UNIT OF WINGS HOLDINGS INC IS ALONE SO FAR IN ITS ATTEMPT TO PERMANENTLY RAISE LEISURE FARES BY 5 THE ST PAUL MINN CARRIER IMPLEMENTED THE INCREASE AT THE SAME TIME THAT IT INTRODUCED THE FARE SALE BUT ONCE THE SALE ENDS IF OTHER AIRLINES FAIL TO MATCH THE INCREASE NORTHWEST WILL BE FORCED TO RETREAT TO PREVIOUS LEVELS OR FACE THE CONSEQUENCES OF HAVING FARES SLIGHTLY HIGHER THAN THE COMPETITION BY SETTING FARES IN SUCH A MANNER NORTHWEST APPEARS TO HAVE FOUND A WAY AROUND RECENTLY IMPOSED DEPARTMENT OF JUSTICE RULES WHICH PROHIBIT AIRLINES FROM SIGNALING THEIR COMPETITORS OF PLANNED FARE INCREASES IN ADVANCE THE GOVERNMENT NOW REQUIRES THAT FARE INCREASES TAKE EFFECT AS SOON AS THEY ARE LOADED INTO COMPUTER RESERVATION SYSTEMSWHERE OTHER AIRLINES IMMEDIATELY SEE THEM WE HAVE TAKEN NO ACTION ON THIS 5 INCREASE SAID THE SPOKESWOMAN FOR USAIR A UNIT OF USAIR GROUP INC WE CANNOT DISCUSS OR SPECULATE ABOUT FUTURE PRICING 9303030007 930303 BUSINESS BRIEF LILLY INDUSTRIES INC FIRM WILL BUY SOME LINES OF IMPERIAL CHEMICAL UNIT LILLY INDUSTRIES INC SAID IT AGREED TO PURCHASE CERTAIN OF ICI PAINTS' USBASED LIQUID INDUSTRIAL COATINGS BUSINESSES IN EXCHANGE FOR CASH AND LILLY'S PACKAGING COATINGS BUSINESS THE AMOUNT OF CASH WASN'T DISCLOSED THE INDIANAPOLIS MAKER OF INDUSTRIAL COATINGS SAID IT WILL ACQUIRE ICI PAINTS' COIL WOOD AND GENERAL INDUSTRIAL COATINGS BUSINESSES THE COMPANY SAID THE BUSINESSES ARE COMPLEMENTARY TO LILLY'S ESTABLISHED INDUSTRIAL COATINGS BUSINESSES WHEREAS THE PACKAGING BUSINESS IS CONSIDERED NONCORE ICI PAINTS A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC SAID THE PACKAGING COATINGS BUSINESS WILL BROADEN ITS EXISTING POSITION IN THE NORTH AMERICAN CAN COATING SECTOR 9303030006 930303 GM FORD COMING OUT OF US SLUMP FACE PRESSURE FROM EUROPEAN RECESSION BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA JUST WHEN GENERAL MOTORS CORP AND FORD MOTOR CO SEEM TO BE OUTRUNNING A RECESSION IN THE US ANOTHER ONE HITTING EUROPE WILL PUT PRESSURE ON BOTH AUTO CONCERNS LADIES AND GENTLEMEN THE BOOM YEARS ARE OVER LOUIS R HUGHES GM'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS DECLARED AT THE OUTSET OF AN AUTO SHOW HERE YESTERDAY AND WITH THE END OF THE BOOM HE SAID WILL COME A DECLINE IN THE ROBUST GM EUROPE PROFITS THAT HAVE HELPED SUSTAIN THE NO 1 AUTO MAKER WHILE ITS NORTH AMERICAN OPERATIONS WALLOWED IN RED INK AT FORD OF EUROPE MEANWHILE EXECUTIVES SAY THE SLUMP TURNS UP THE PRESSURE TO PUT THEIR STUMBLING OPERATIONS BACK IN THE BLACK FORD YESTERDAY LAUNCHED A NEW MODEL IN EUROPE THE MONDEO THE FIRST PRODUCT OF A WORLD CAR PROGRAM THAT COST THE COMPANY AN ESTIMATED 6 BILLION EARLY NEXT YEAR FORD WILL LAUNCH A VERSION OF THE CAR IN THE US TO REPLACE ITS AGING FORD TEMPO AND MERCURY TOPAZ COMPACTS FORD OFFICIALS SAY THE HUGE INVESTMENT IN THE MONDEO WILL YIELD BENEFITS FOR YEARS TO COME IN THE FORM OF NEW ENGINES AND A PRODUCT THAT CAN BE SOLD WORLDWIDE WITH ONLY MINOR MODIFICATIONS BUT IN THE SHORT RUN THE MONDEO'S COST IS A HEFTY BURDEN WITH THE LEVEL OF INVESTMENT WE ARE MAKING WE NEED TO HAVE A PROFITABLE OPERATION SAID JACQUES NASSER FORD OF EUROPE'S CHAIRMAN MR NASSER'S GOAL WILL BE DIFFICULT TO ACHIEVE THIS YEAR IF INDUSTRY FORECASTS FOR EUROPEAN SALES PROVE TO BE CORRECT INDUSTRY EXECUTIVES EXPECT WESTERN EUROPEAN VEHICLE SALES TO FALL BY MORE THAN ONE MILLION VEHICLES OR 8 FROM 134 MILLION CARS AND TRUCKS LAST YEAR WITH THAT DECLINE MR HUGHES SAID THERE'S NO QUESTION THAT GM EUROPE'S PROFITS WILL SLIDE FROM LAST YEAR'S 12 BILLION MR HUGHES WAS QUICK TO ADD HOWEVER THAT HE EXPECTS GM EUROPE WILL BE REASONABLY PROFITABLE AND WILL GAIN MARKET SHARE BUT PROFIT MARGINS CAN EVAPORATE QUICKLY WHEN A SOFT MARKET FORCES MANUFACTURERS TO CUT PRODUCTION AND STEP UP DISCOUNTS AS GM AND FORD EXECUTIVES KNOW FROM THEIR RECENT EXPERIENCE IN THE US EUROPEAN GOVERNMENTS ARE PUTTING PRESSURE ON JAPANESE AUTO MAKERS TO CUT SHIPMENTS TO EUROPE BUT WITH JAPANESE PLANTS IN BRITAIN GEARING UP TO PRODUCE MORE THAN 500000 VEHICLES ANNUALLY EUROPEAN MANUFACTURERS SEE LITTLE CHOICE BUT TO SCRAMBLE TO CUT COSTS BEFORE THEY'RE HIT BY THE FULL BRUNT OF THE RECESSION AND THE JAPANESE ASSAULT EVERYBODY IS TAKING STEPS TO CUT COSTS DRAMATICALLY SAID MR HUGHES THE NO 1 EUROPEAN AUTO MAKER VOLKSWAGEN AG IS EXPECTED TO UNVEIL A BROAD COSTCUTTING EFFORT LATER THIS MONTH ONE SIGNAL OF THE DIRECTION VW MAY TAKE IS AN EFFORT TO WOO FROM GM ITS CHIEF COSTCUTTER J IGNACIO LOPEZ DE ARRIORTUA GROUP VICE PRESIDENT FOR WORLDWIDE PURCHASING MR LOPEZ HAS SAID HE'S STAYING AT GM AND GM PRESIDENT JOHN F SMITH JR SAID HERE YESTERDAY HE IS PRETTY COMFORTABLE THAT HIS LONGTIME AIDE WILL REMAIN WITH HIM IN THE COSTCUTTING RACE WITH VW AND OTHER EUROPEAN AUTO MAKERS GM AND FORD OFFICIALS CLEARLY HOPE THEIR COMPANIES' EXPERIENCE WITH JAPANESE MANUFACTURERS IN THE US AND ELSEWHERE WILL GIVE THEM AN EDGE AT GM EUROPE MR HUGHES HAS INSTALLED A TEAM OF GM MANAGERS WHO HAD WORKED AT JOINT VENTURES WITH TOYOTA MOTOR CORP AND SUZUKI MOTOR CORP AT A NEW FACTORY IN EISENACH IN THE FORMER EAST GERMANY MR HUGHES SAID EISENACH WILL BECOME AN EXAMPLE OF HIGH EFFICIENCY FOR OUR OTHER PLANTS FORD MEANWHILE SEES THE MONDEO AS A FIRST STEP TOWARD EMULATING THE JAPANESESTYLE PRODUCT DEVELOPMENT SYSTEMS THAT ALLOW A SINGLE TEAM OF ENGINEERS TO DESIGN A CAR THAT CAN BE SOLD WORLDWIDE THUS SPREADING COSTS OUT OVER A LARGER VOLUME THE VERSION OF THE MONDEO SOLD IN THE US WILL HAVE 80 TO 90 COMMON PARTS WITH ITS EUROPEAN SISTER CAR FORD ENGINEERS SAY THERE'S NO DOUBT WE HAVE TO SUBSTANTIALLY LOWER COSTS IN EUROPE SAID RICHARD PARRYJONES CHIEF ENGINEER FOR THE MONDEO PROJECT WE CAN'T AFFORD TO CHEAT THE CUSTOMER IN THE ATTEMPT SO IT HAS GOT TO COME OUT OF OVERHEAD 9303030005 930303 WHO'S NEWS NICHOLS INSTITUTE'S CHAIRMAN REPLACES THREE OF ITS DIRECTORS SAN JUAN CAPISTRANO CALIF ALBERT L NICHOLS CHAIRMAN OF NICHOLS INSTITUTE SAID HE REPLACED THREE OF THE COMPANY'S SEVEN DIRECTORS AND SEEKS THE REPLACEMENT OF TWO MORE THE MOVES WHICH DR NICHOLS SAID HE HAS PROMPTED THROUGH EXERCISE OF HIS 86 VOTING CONTROL IN THE DIAGNOSTICS TESTING CONCERN'S SERIES B COMMON STOCK WILL LEAVE ONLY DR NICHOLS AND PAUL BELLAMY THE COMPANY'S ACTING PRESIDENT AND CHIEF EXECUTIVE OFFICER AS LONGTIME INCUMBENTS DR NICHOLS THE COMPANY'S FOUNDER AND CONTROLLING SHAREHOLDER SAID IN AN INTERVIEW THAT HE IS MAKING THE REPLACEMENTS IN ORDER TO BRING TO THE BOARD PEOPLE EXPERIENCED IN RAPID CORPORATE CHANGES HE CITED EMERGING CLINTON ADMINISTRATION POLICIES ON HEALTH CARE NEWLY NAMED TO THE BOARD WERE ROCK N HANKIN PRINCIPAL OF THE MANAGEMENT CONSULTING FIRM BEARING HIS NAME GEORGE L BRAGG FORMER VICE CHAIRMAN OF WESTERN DIGITAL CORP AND FREDRIC M ROBERTS PRESIDENT OF AN INVESTMENT BANKING COMPANY BEARING HIS NAME THE DIRECTORS DISMISSED WERE ROSABETH M KANTER PROFESSOR OF BUSINESS ADMINISTRATION AT HARVARD UNIVERSITY JOHN T POTTS JR PROFESSOR OF CLINICAL MEDICINE AT HARVARD UNIVERSITY MEDICAL SCHOOL AND JAMES A RIDDELL PROFESSOR OF ENGLISH AT CALIFORNIA STATE UNIVERSITY DOMINGUEZ HILLS DR NICHOLS SAID HE WILL RECOMMEND THAT THE RECONSTITUTED BOARD NOT RENOMINATE TWO OTHER DIRECTORS NORMAN W ACHEN A LAWYER AND FORMER COMPANY OFFICER AND EARL L WRIGHT AN INVESTMENT ADVISER FOR ELECTION AT THE COMPANY'S ANNUAL MEETING THE BOARD SLOTS HELD BY MESSRS ACHEN AND WRIGHT ARE ELECTED BY HOLDERS OF NICHOLS INSTITUTE CLASS A SHARES WHICH AREN'T CONTROLLED BY DR NICHOLS 9303030004 930303 HEARD ON THE STREET PRUDENTIAL'S GAFFE IN PICKING CENTOCOR FOR BUY IS CASE OF NOW YOU SEE IT NOW YOU DON'T BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET IS GOOD AT GLOSSING OVER ITS MISTAKES BUT PRUDENTIAL SECURITIES IS SHOWING HOW TO MAKE THEM DISAPPEAR ALTOGETHER EARLY LAST YEAR THE BIG BROKERAGE FIRM TRIPPED UP BY REITERATING A STRONG BUY RECOMMENDATION ON CENTOCOR JUST AS THE BIOTECHNOLOGY STOCK WAS ABOUT TO SWOON THE STOCK PROMPTLY SLUMPED 48 BEFORE PRUDENTIAL GOT AROUND TO YANKING IT OFF THE RECOMMENDED LIST BUT YOU WOULDN'T KNOW ANY OF THIS BY READING PRUDENTIAL'S LATEST INVESTOR NEWSLETTER COVERING THE SINGLE BEST IDEAS FROM ITS FARFLUNG GROUP OF STOCK ANALYSTS CENTOCOR AND INDEED ANY OTHER PRUDENTIALRECOMMENDED BEST IDEA THAT HAPPENED TO DECLINE IN 1992 HAS BEEN CONVENIENTLY PURGED FROM A FRONTPAGE PERFORMANCE TABLE IN THE NEWSLETTER THE PURGED 31STOCK LIST SHOWS WHY IT PAYS INVESTORS TO BE WARY OF THE NEWS IN SOME FINANCIAL FIRMS' NEWSLETTERS AS OFTEN AS NOT IT'S REALLY MARKETING MATERIAL IN PRUDENTIAL'S CASE THE MULTISTOCK TABLE APPEARS RIGHT UNDER A BAR CHART SHOWING THE AVERAGE GAIN OVERALL FOR PRUDENTIAL'S 1992 BESTIDEAS PICKS THE TABLE THUS MAKES IT LOOK AS IF ALL OF PRUDENTIAL'S PICKS MIRACULOUSLY ROSE OBVIOUSLY THEY DIDN'T ACCORDING TO ZACKS INVESTMENT RESEARCH WHICH TRACKS SUCH THINGS CENTOCOR WAS THE BIGGEST CLUNKER BUT THERE ALSO WERE OTHER LOSERS ON PRUDENTIAL'S BESTIDEAS LIST LAST YEAR HANNAFORD BROTHERS FELL 22 AND WHEELABRATOR TECHNOLOGIES BOEING AND STRATUS COMPUTER FELL AT LEAST 20 EACH BUT NONE APPEAR IN THE PRUDENTIAL NEWSLETTER THE NEWSLETTER APPARENTLY RUBBED SALT IN THE WOUNDS OF SOME PRUDENTIAL CLIENTS WHO BOUGHT CENTOCOR ONE WROTE TO THE WALL STREET JOURNAL SAYING HE WAS VERY CONCERNED THAT A STOCK PRUDENTIAL HAD IDENTIFIED AS AN SBI WASN'T INCLUDED IN THE 1992 SINGLE BEST IDEAS SUMMARY THE FINE PRINT IN ANOTHER PRUDENTIAL INVESTORS' NEWSLETTER SAYS THAT A COMPLETE RECORD OF SINGLE BEST IDEA RECOMMENDATIONS AND PERFORMANCES IS AVAILABLE UPON REQUEST THIS NEWSPAPER DID REQUEST SUCH A LIST MONDAY BUT IT FAILED TO ARRIVE HOWEVER IT TURNS OUT THAT THE BIG DECLINERS ACTUALLY AREN'T ON THE COMPLETE RECORD PRUDENTIAL'S APPROACH IN THE NEWSLETTER IS UNFORTUNATE SINCE ITS RESEARCH DEPARTMENT GETS HIGH MARKS FROM MANY INVESTORS AND ITS STOCK PICKS STAND UP WELL WITHOUT HAVING TO BE EMBELLISHED ACCORDING TO ZACKS PRUDENTIAL'S BEST IDEAS WINNERS AND LOSERS COMBINED PRODUCED A 239 RISE LAST YEAR MAKING PRUDENTIAL THE THIRDBEST RESEARCH HOUSE IN A REGULAR STUDY OF WALL STREET STOCKPICKING CONDUCTED BY THE WALL STREET JOURNAL AND ZACKS PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA HANDILY BEAT THE 45 RISE IN STANDARD & POOR'S 500STOCK INDEX WHAT DOES PRUDENTIAL SAY A SPOKESMAN SAYS THERE IS NO INTENTION WHATSOEVER TO HIDE THINGS THAT DIDN'T WORK OUT HE SAYS THE IMPORTANT THING IS THAT THE CENTOCOR DECLINE AND OTHER STOCK DECLINES IS CORRECTLY FACTORED INTO THE OVERALL PERCENTAGE GAIN IN THE NEWSLETTER THERE IS NO REASON TO ACTUALLY LIST THESE DECLINING STOCKS HE SAYS IN FACT IT WOULD BE ALMOST MISLEADING TO INCLUDE STOCKS THAT AREN'T SBIS BECAUSE IT MIGHT IMPLY PRUDENTIAL WAS STILL RECOMMENDING THEM THE PRUDENTIAL ANALYST WHO MADE THE CENTOCOR CALL JOSEPH EDELMAN IS CAUGHT IN THE MIDDLE PICKING A SINGLE BEST IDEA IN HIS BIOTECHNOLOGY GROUP IS A REAL HEADACHE FOR ME BECAUSE IT'S A VERY VOLATILE DIFFICULT GROUP HE SAYS THOUGH IT'S NOT HIS RESPONSIBILITY MR EDELMAN ALSO DEFENDS HIS FIRM'S NEWSLETTER SAYING THAT AS LONG AS THEY'RE CALCULATING IT IN THE OVERALL PERFORMANCE NUMBER THEY'RE FULFILLING THEIR RESPONSIBILITY MR EDELMAN WASN'T TOTALLY WRONG ON CENTOCOR JUST SLOW ON PULLING HIS BUY RECOMMENDATION HE MADE THE STOCK HIS SBI PICK IN NOVEMBER 1990 AND IT NEARLY TRIPLED BY JANUARY 1992 HE REITERATED THE BESTIDEA STATUS IN A JAN 14 1992 REPORT THEN PROBLEMS STARTED AS CENTOCOR'S STOCK SAGGED AMID DOUBTS ABOUT FEDERAL APPROVAL FOR ITS FLAGSHIP SEPTICSHOCK DRUG CENTOXIN MR EDELMAN PULLED IT OFF THE BESTIDEA LIST BUT MAINTAINED A BUY RECOMMENDATION ON APRIL 15 CENTOCOR PLUNGED 41 IN A DAY ON NEWS THAT THE FOOD AND DRUG ADMINISTRATION SAID IT LACKED SUFFICIENT DATA TO APPROVE CENTOXIN AT THAT POINT MR EDELMAN FINALLY MOVED THE STOCK TO A HOLD WHERE IT REMAINS ALONG WITH MOST OTHER BIOTECH STOCKS HE FOLLOWS HIS CURRENT BEST IDEA IS GENENTECH WHICH WAS AT 33 3/8 UP 1 1/8 YESTERDAY MR EDELMAN SAYS HE KNOWS MANY INVESTORS ARE MAD AT HIM FOR WHAT THEY VIEW AS FOOTDRAGGING IN DOWNGRADING THE STOCK BUT HE SAYS THE KIND OF PANICDRIVEN SELLING THAT HURT CENTOCOR IS IMPOSSIBLE FOR ANALYSTS TO FORECAST IF YOU DO A SELL' AS YOUR SINGLE BEST IDEA YOU CAN FORGET ABOUT EVER TALKING TO THE COMPANY AGAIN THE ANALYST SAYS AND IF YOU'RE WRONG YOU CAN KISS YOUR JOB GOODBYE 9303030003 930303 LAW LEGAL BEAT STATES CLAIM SHARE OF AWARDS IN LIABILITY SUITS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL THE STATE OF GEORGIA WOULD BE THE BIGGEST WINNER IF THE RECENT 105 MILLION JURY VERDICT AGAINST GENERAL MOTORS CORP IS UPHELD THAT'S BECAUSE A GEORGIA LAW COMMANDEERS 75 OF ALL PUNITIVEDAMAGE AWARDS FROM PRODUCTLIABILITY SUITS AND STEERS IT INTO THE STATE TREASURY FACING BUDGET SQUEEZES SIX OTHER STATES HAVE PASSED SIMILAR LAWS AND SEVERAL MORE ARE CONSIDERING SUCH MEASURES THE IDEA SOUNDS GREAT AS A POTENTIAL REVENUE BOOSTER BUT IT ALSO RAISES A SIGNIFICANT CONSTITUTIONAL QUESTION WHETHER SUCH LAWS ALLOW THE GOVERNMENT TO CONVERT PRIVATE PROPERTY TO PUBLIC USE WITHOUT PAYING FOR IT IN VIOLATION OF THE TAKINGS CLAUSE OF THE FIFTH AMENDMENT OF THE US CONSTITUTION A FLORIDA PLAINTIFFS' LAWYER IS ASKING THE US SUPREME COURT TO CONSIDER THE ISSUE THE COURT HASN'T YET TAKEN UP THE REQUEST PUNITIVE DAMAGES ARE INTENDED TO PUNISH WRONGDOERS AND DETER FUTURE MISDEEDS THEY ARE ASSESSED IN ADDITION TO COMPENSATORY DAMAGES DESIGNED TO REIMBURSE THE PLAINTIFF FOR ANY HARM DONE IN THE GM CASE 101 MILLION OF THE TOTAL AWARD WAS PUNITIVE BASED ON THE JURY'S APPARENT BELIEF THAT THE COMPANY IGNORED INTERNAL TESTS INDICATING GAS TANKS ON CERTAIN PICKUPS WERE VULNERABLE TO PUNCTURING AND EXPLOSION ALL THE STATE LAWS IN GEORGIA FLORIDA ILLINOIS IOWA MISSOURI OREGON AND UTAH WERE PASSED AS PART OF NATIONWIDE EFFORTS TO RESTRAIN LIABILITY SUITS STATE LAWMAKERS REASONED THAT IN ADDITION TO RAISING REVENUE THE LAWS WOULD REDUCE BOTH LAWYERS' AND CLIENTS' FINANCIAL INCENTIVES TO FILE LAWSUITS AND THUS WOULD DISCOURAGE SPECIOUS OR EXCESSIVE CLAIMS TYPICALLY PLAINTIFFS' LAWYERS IN SUCH SUITS WORK ON A CONTINGENTFEE BASIS THEY PAY THE UPFRONT COST OF TAKING SUCH CLAIMS TO COURT IN HOPES OF COLLECTING A PERCENTAGE OF COMPENSATORY AND PUNITIVE DAMAGES IF THEY WIN YOU'RE SIGNIFICANTLY REDUCING THE LIKELIHOOD THAT THESE CLAIMS WILL BE PURSUED IF YOU REDUCE THE LEGAL FEES SAYS MARTIN CONNOR PRESIDENT OF THE AMERICAN TORT REFORM ASSOCIATION A NATIONAL GROUP THAT HELPS ORGANIZE STATE EFFORTS TO CURB JURY AWARDS BUT EVEN THOSE SYMPATHETIC TO DEFENDANTS IN PRODUCTLIABILITY CASES AREN'T SURE THEY LIKE THE IDEA OF STATES' FEASTING OFF BIG DAMAGE AWARDS AND THUS PRESUMABLY ULTIMATELY COMING TO PREFER THAT SUCH AWARDS OCCUR OUR MEMBERS ARE STRONGLY DIVIDED ON THIS SAYS MR CONNOR WE DON'T SUPPORT OR ENDORSE MONEY GOING TO THE STATE IT CREATES PERVERSE INCENTIVES NONE OF THE STATES' LAWS SEEK A SHARE OF COMPENSATORY DAMAGES WHICH THE PLAINTIFF IS UNDERSTOOD TO HAVE A CLEAR RIGHT TO RECEIVE BUT THE PUNITIVE PORTION IS ANOTHER MATTER BECAUSE IT ARGUABLY PROVIDES THE PLAINTIFF A WINDFALL ABOVE WHAT'S NEEDED TO COMPENSATE HIM OR HER FOR ANY HARM MOREOVER PUNITIVE DAMAGES RESEMBLE CRIMINAL FINES WHICH GENERALLY PASS TO THE GOVERNMENT RATHER THAN TO THE CRIME VICTIM THUS THE STATES SAY THESE DAMAGES ARE FAIR GAME PLAINTIFFS' LAWYERS CONTEND THOUGH THAT ONCE A JURY HAS RETURNED A FAVORABLE VERDICT PLAINTIFFS DO HAVE A PROPERTY INTEREST IN THE DAMAGES AWARDED THE GOVERNMENT IS PRECLUDED FROM TAKING ANY PART OF SUCH AWARDS THESE LAWYERS SAY WITHOUT PROVIDING COMPENSATION UNLESS IT CAN SHOW A RATIONAL RELATIONSHIP TO A LEGITIMATE GOVERNMENT INTEREST FLORIDA'S STATUTE IS PARTICULARLY TOUGH ON PLAINTIFFS' LAWYERS BECAUSE IT ALLOWS THE STATE TO CLAIM ITS PORTION BEFORE LAWYERS CAN RECOVER THEIR FEES AND COSTS LEAVING THEM TO TAKE THEIR SHARE FROM WHAT REMAINS GEORGIA'S LAW IS LESS EXPLICIT BUT APPEARS TO GIVE SOME DISCRETION TO THE JUDGE TO DECIDE WHAT LEGAL FEES ARE REASONABLE THE FLORIDA SUPREME COURT UPHELD THE PROVISION LAST YEAR REASONING THAT IT SERVED TWO LEGITIMATE OBJECTIVES ALLOTTING A PORTION OF DAMAGES MEANT TO SERVE THE PUBLIC DIRECTLY TO THE PUBLIC AND DISCOURAGING EXCESSIVE PUNITIVE DAMAGE CLAIMS BY MAKING THEM LESS REMUNERATIVE NOT SURPRISINGLY FLORIDA PLAINTIFFS' LAWYERS AREN'T HAPPY IN 1989 CORAL GABLES ATTORNEY BERNARD B WEKSLER WON 72500 IN COMPENSATORY DAMAGES AND 512000 IN PUNITIVE DAMAGES AGAINST KMART CORP ON BEHALF OF A CLIENT AT THE TIME THE STATE'S LAW GAVE THE STATE 60 OF PUNITIVE DAMAGES AWARDED IN ALL PERSONALINJURY AND WRONGFULDEATH SUITS AN AMENDMENT LAST YEAR REDUCED THE STATE'S TAKE TO 35 UNDER THE LAW FLORIDA IS ENTITLED TO 307200 OF THE TOTAL AWARD CUTTING BY MORE THAN HALF NOT JUST THE PLAINTIFF'S DAMAGE AWARD BUT ALSO MR WEKSLER'S CONTINGENCY FEE THE STATE IS NOT DOING ANYTHING BUT GRABBING THE MONEY SAYS MR WEKSLER WHO IS ASKING THE US SUPREME COURT TO HEAR HIS APPEAL IN SOME OTHER STATES COURTS HAVE RULED FOR THE PLAINTIFFS COLORADO'S HIGH COURT IN 1991 THREW OUT A LAW STEERING 30 OF ALL PUNITIVE DAMAGE AWARDS TO THE STATE FINDING IT AN UNCONSTITUTIONAL TAKING OF PRIVATE PROPERTY THE PRACTICAL EFFECT OF THE LAW REASONED THE COURT IMPOSED NOT ON THE WRONGDOER WHO CAUSED THE INJURIES BUT ON THE PLAINTIFF WHO SUFFERED THE HARM A COURT IN GEORGIA USED OTHER REASONING TO DECLARE THAT STATE'S LAW UNCONSTITUTIONAL US DISTRICT JUDGE J ROBERT ELLIOTT IN COLUMBUS GA FOUND IN 1990 THAT THE LAW VIOLATED EQUALPROTECTION PROVISIONS BECAUSE IT APPLIES ONLY TO PLAINTIFFS IN PRODUCTLIABILITY CASES THUS DISCRIMINATING AGAINST THEM CALLING THE LAW AN UNREASONABLE AND ARBITRARY PROVISION JUDGE ELLIOT SPECIFICALLY REJECTED ARGUMENTS THAT THE LAW SERVED A VALID STATE PURPOSE BY DETERRING PUNITIVEDAMAGE CLAIMS AGAINST BUSINESSES BUT THE CASE WAS SETTLED OUT OF COURT BEFORE IT COULD BE APPEALED THOUGH JUDGE ELLIOTT'S DECISION CAN BE CITED BY OTHER JUDGES IT ISN'T BINDING OUTSIDE HIS OWN JURISDICTION SO ABSENT A DECISION FROM THE US SUPREME COURT ON MR WEKSLER'S BID TO OVERTURN FLORIDA'S LAW THE FINAL WORD ON WHETHER GEORGIA IS ENTITLED TO PUNITIVE DAMAGES FROM GM NOW RESTS WITH THAT STATE'S HIGH COURT IN A SEPARATE APPEAL A DECISION THERE ISN'T EXPECTED BEFORE THIS SUMMER A NATIONAL FRANCHISER CAN BE HELD LIABLE FOR RACIAL DISCRIMINATION BY ITS FRANCHISEE A PENNSYLVANIA STATE JUDGE HAS RULED JUDGE NELSON A DIAZ AFFIRMED A JURY'S FINDING THAT A PHILADELPHIA FRANCHISEE WAS UNDER CENTURY 21 REAL ESTATE CORP'S CONTROL WHEN IT DISCRIMINATED AGAINST A PROSPECTIVE PROPERTY BUYER HE UPHELD THE JURY'S AWARD OF 40000 IN PUNITIVE DAMAGES AGAINST CENTURY 21 AN IRVINE CALIF UNIT OF METROPOLITAN LIFE INSURANCE CO THE JURY ALSO RULED THAT THE FRANCHISEE AND SOME OF ITS REALESTATE AGENTS MUST PAY THE PLAINTIFF A TOTAL OF 160000 IN COMPENSATORY AND PUNITIVE DAMAGES THE DECISION IS AMONG THE FIRST TO HOLD A REALESTATE FRANCHISER LIABLE FOR THE BUSINESS PRACTICES OF ITS FRANCHISEE ACCORDING TO DAVID KAUFMANN A NEW YORK FRANCHISING LAWYER WHO WASN'T INVOLVED IN THE CASE THE PLAINTIFF IN THE CASE CALVIN PAYNE ALLEGED THAT WEBER REALTY INC THE FRANCHISEE REFUSED TO SHOW HIM SOME PROPERTY BECAUSE HE IS BLACK THOUGH THE LANGUAGE OF CENTURY 21'S FRANCHISE AGREEMENT WITH WEBER APPEARED TO PROTECT IT FROM LIABILITY FOR WEBER'S ACTS JUDGE DIAZ SAID THE JURY WAS ENTITLED TO DISREGARD THE AGREEMENT IF CENTURY 21 EXERCISED ENOUGH CONTROL OVER WEBER TO NEGATE THE CLEAR INTENT OF THE PARTIES EXPRESSED IN THEIR FRANCHISE AGREEMENT LAWYERS FOR CENTURY 21 AND WEBER DIDN'T RETURN PHONE CALLS SEEKING COMMENT NOTED CHARLES Y LACKEY FORMERLY CHIEF COUNSEL OF THE PERSONAL PRODUCTS GROUP OF SARA LEE CORP JOINED THE WINSTONSALEM NC LAW FIRM PETREE STOCKTON ON AN OF COUNSEL BASIS MR LACKEY WILL SPECIALIZE IN PATENT TRADEMARK AND ANTITRUST LAW PETREE STOCKTON ALSO ANNOUNCED THAT ELIZABETH GARLAND WREN FORMERLY OF A GASTONIA NC LAW FIRM JOINED THE 103ATTORNEY FIRM'S CHARLOTTE OFFICE AS A PARTNER EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9303030002 930303 TRUMP IS SEEKING CONCESSIONS TO BUILD LONGDELAYED PROJECT IN MANHATTAN BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DONALD TRUMP IS SEEKING TAX ABATEMENTS AND STATEBACKED FINANCING TO BUILD HIS LONGPROPOSED APARTMENT COMPLEX ON 75 ACRES OF MANHATTAN'S UPPER WEST SIDE POSSIBLY HIS ONLY CHANCE FOR DEVELOPING THE SITE IN THE NEAR FUTURE IN NEGOTIATIONS WITH PUBLIC OFFICIALS MR TRUMP AND HIS ADVISERS HAVE ARGUED THAT CONCESSIONS FOR RIVERSIDE SOUTH AS THE PROJECT FOR 5700 APARTMENT UNITS IS CALLED WOULD HELP CREATE TENS OF THOUSANDS OF NEW CONSTRUCTION JOBS AND SUBSTANTIALLY BOOST THE CITY'S ECONOMY STATE OFFICIALS SAY THEY ALSO ARE INTERESTED IN THE PROPOSAL BECAUSE IT HAS THE POTENTIAL TO CREATE MORE MODERATELY PRICED RENTAL UNITS WHICH ARE IN SHORT SUPPLY IN MANHATTAN WHILE MR TRUMP WOULD BE FREE TO PRICE MOST OF THE UNITS TO WHAT THE MARKET WILL BEAR HE EXPECTS THAT FOR THE FORSEEABLE FUTURE THIS MEANS APPEALING TO MODERATEINCOME RENTERS THE BIGGEST PROBLEM WITH THIS PROJECT WAS ITS SIZE SAID MR TRUMP NOW BY PITCHING ITS SIZE AS AN OPPORTUNITY TO ADD CONSTRUCTION JOBS AND MORE MODERATEINCOME HOUSING HE SAYS IT'S AN ASSET WITHOUT CITY AND STATE SUPPORT THE PROJECT WOULD BE MORE COSTLY TO BUILD AND RUN AND WOULD NEED TO BE GEARED TOWARD THE LUXURY END OF THE MARKET THAT SECTOR HOWEVER IS TOO WEAK TO CREATE ENOUGH DEMAND TO OCCUPY SUCH A LARGE PROJECT WHICH WOULD CAUSE LENDERS TO STAY AWAY MR TRUMP'S CURRENT DEBT ON THE LAND ITSELF IS PUTTING PRESSURE ON HIM TO GET THE PROJECT MOVING A MORTGAGE OF MORE THAN 210 MILLION ON THE LAND FROM A LENDING SYNDICATE LED BY CHASE MANHATTAN CORP WILL COME DUE ON JUNE 30 ONE MEMBER OF THE LENDING GROUP SAID THAT CITY AND STATE HELP ON THE PROJECT WOULD PROVIDE ADDED INCENTIVE FOR LENDERS TO EXTEND THE LOAN EVERYONE IS LOOKING AT EACH OTHER AND SAYING YES WE THINK THIS MAKES SENSE' SAID THE LENDER WHAT WE NEED IS SOMETHING PUT DOWN IN WRITING MR TRUMP IS SEEKING ABATEMENTS ON CITY PROPERTY TAXES AND STATE SALES TAX ON BUILDING MATERIALS ACCORDING TO VINCENT TESE HEAD OF THE URBAN DEVELOPMENT CORP THE STATE'S ECONOMIC DEVELOPMENT ARM IN ADDITION MR TRUMP IS ASKING FOR STATE ASSISTANCE TO FLOAT TAXEXEMPT STATEGUARANTEED BONDS TO FINANCE THE PROJECT OUR MAIN INTEREST IS THE CONSTRUCTION JOBS AND THE AFFORDABLE HOUSING THAT WOULD BE CREATED SAID MR TESE CITY OFFICIALS DECLINED COMMENT ON THE PROPOSAL BUT ACCORDING TO ONE PERSON FAMILIAR WITH THE TALKS THE CITY IS LIKELY TO PUSH FOR A GUARANTEE THAT THE PROJECT'S 16 BUILDINGS BE BUILT QUICKLY THAT THE UNIONS ALSO MAKE CONCESSIONS AND THAT FINANCING BE ARRANGED FIRST WHAT THIS GAME IS ALL ABOUT IS WHAT YOU HAVE TO DO TO GET THE LENDERS TO COME IN SAID NEW YORK LAWYER MICHAEL BAILKIN WHO IS REPRESENTING MR TRUMP IN THE NEGOTIATIONS WE WANT TO PUSH THE BREAKEVEN RENTAL COST DOWN ENOUGH THAT LENDERS WILL COME IN BECAUSE THE RENTAL MARKET IS DEEP ENOUGH MR TRUMP HAS SECURED TAX ABATEMENTS IN THE PAST TO GET DIFFICULT PROJECTS OFF THE GROUND IN THE MID1970S HE BARGAINED FOR A 40YEAR PROPERTY TAX ABATEMENT TO CONVERT AN AGING MIDTOWN HOTEL INTO THE GRAND HYATT NEW YORK IN EXCHANGE THE CITY IS RECEIVING A SHARE OF PROFITS MR TRUMP'S ADVISERS CONTEND THAT RIVERSIDE SOUTH'S CONSTRUCTION WOULD PUMP 12 BILLION INTO THE CITY'S ECONOMY THROUGH WAGES AND BUILDING MATERIAL PURCHASES AND COULD CREATE 20000 TO 30000 CONSTRUCTIONRELATED JOBS AFTER BUYING THE LAND IN 1985 MR TRUMP PROPOSED TRUMP CITY A 145 MILLIONSQUAREFOOT DEVELOPMENT OF APARTMENTS STORES TELEVISION STUDIOS AND OFFICE BUILDINGS INCLUDING THE WORLD'S TALLEST THAT PLAN WHICH WOULD HAVE OVERWHELMED THE NEIGHBORHOOD PROVOKED A STORM OF PUBLIC OPPOSITION IN 1991 HE WITHDREW THE PLAN AND DESIGNED A SCALEDDOWN VERSION WHICH INCLUDES A 22ACRE PUBLIC WATERFRONT PARK HE AGREED TO FUND SUBWAY AND STREET IMPROVEMENTS AND SET ASIDE 12 OF THE APARTMENTS FOR RENTAL TO LOW AND MIDDLEINCOME TENANTS THAT PROPOSAL WAS ENDORSED BY MANY OF THE PROJECTS OPPONENTS INCLUDING MANHATTAN BOROUGH PRESIDENT RUTH MESSINGER AND RECENTLY RECEIVED ZONING APPROVAL 9303030001 930303 CREDIT MARKETS LOW LEVEL OF LONGTERM RATES CREATES QUEUE OF CORPORATE MUNICIPAL ISSUERS EAGER TO SELL BY THOMAS T VOGEL JR AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH LONGTERM INTEREST RATES AT THEIR LOWEST LEVELS IN OVER TWO DECADES MANY TREASURERS FROM CORPORATIONS CITIES AND STATES ARE LINING UP TO REFINANCE THEIR DEBT AT LOWER RATES ONE OF THE MOST AGGRESSIVE OF THIS GROUP HAS BEEN TENNESSEE VALLEY AUTHORITY A UTILITY BASED IN KNOXVILLE TENN LONGTERM RATES HAVE DROPPED SO FAR THAT THIS WEEK TVA DECIDED TO ANNOUNCE A TENDER OFFER FOR 1 BILLION OF THREEYEAR NOTES ISSUED LESS THAN SEVEN MONTHS AGO YESTERDAY THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND DROPPED SLIGHTLY YESTERDAY TO 683 FROM 684 ON MONDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE 2/32 TO 103 18/32 THE YIELD OF THE 10YEAR NOTE ALSO DROPPED SLIGHTLY TO END THE DAY AT 593 COMPARED WITH 594 ON MONDAY ITS PRICE ROSE 3/32 TO 102 8/32 BEFORE LAST MONTH THE YIELD ON THE 10YEAR NOTE HAD NOT DROPPED BELOW 590 IN OVER TWO DECADES TVA HAS MOVED RAPIDLY TO TAKE ADVANTAGE OF THE LOWER RATES THE TENDER OFFER MADE BY THE COMPANY EARLIER THIS WEEK COMES ABOUT FIVE MONTHS AHEAD OF THE FIRST CALL DATE ON THE 475 COUPON THREEYEAR NOTES ISSUED LAST AUGUST THIS MEANS THAT THE COMPANY CANNOT FORCE INVESTORS TO GIVE UP THEIR BONDS AS IT COULD AFTER THE CALL DATE SO THE COMPANY HAS OFFERED TO PAY A BIT MORE FOR THE NOTES THAN INVESTORS WOULD HAVE RECEIVED IF THEY HAD WAITED UNTIL THE FIRST CALL DATE IN AN UNUSUAL OFFER THE COMPANY HAS PEGGED THE TENDER PRICE TO THE YIELD OF A TREASURY BILL MATURING THIS AUGUST 26 UNTIL NEXT TUESDAY INVESTORS WHO CHOOSE TO SELL THEIR NOTES WILL RECEIVE A PRICE CORRESPONDING TO A BONDEQUIVALENT YIELD 030 PERCENTAGE POINT ABOVE THE TREASURY BILL YIELD THIS MEANS THAT IF AN INVESTOR HAD DECIDED TO SELL HIS NOTES BACK TO TVA ON MONDAY WHEN THE BILL HAD A BONDEQUIVALENT YIELD OF 314 THAT INVESTOR WOULD RECEIVE A PRICE CORRESPONDING TO A BONDEQUIVALENT YIELD OF 344 THAT MEANS THAT FOR EACH 1000 FACE VALUE OF NOTES AN INVESTOR WOULD RECEIVE 100640 OR 640 MORE THAN HE WOULD HAVE RECEIVED HAD HE WAITED UNTIL THE FIRST CALL DATE IN SEPTEMBER ACCORDING TO WILLIAM MALEC TVA'S CHIEF FINANCIAL OFFICER THE UTILITY COULD SAVE ABOUT 500000 IN INTEREST PAYMENTS IF HALF OF THE NOTES ARE TENDERED BY INVESTORS PROCEEDS FROM LAST WEEK'S 1 BILLION OFFERING OF THREEYEAR AND FIVEYEAR NOTES BY TVA WILL BE USED TO FINANCE THE TENDER OFFER WHICH IS BEING MANAGED THROUGH LEHMAN BROTHERS A DIVISION OF SHEARSON LEHMAN BROTHERS INC USING SIMILARLY AGGRESSIVE REFINANCING TACTICS TVA SAVED ABOUT 30 MILLION IN 1992 ALONE SAID MR MALEC AS OF THE END OF LAST YEAR THE COMPANY HAD REDUCED THE AVERAGE YIELDS ON ITS LONGTERM DEBT TO 79 FROM 101 IN 1989 ACCORDING TO MR MALEC TVA WILL NOT LOSE MONEY IF SHORTTERM INTEREST RATES PLUNGE BEFORE THE TENDER OFFER EXPIRES THUS BOOSTING THE COST OF THE NOTES THEY HAVE AGREED TO BUY BACK HE SAID THAT THE COMPANY HAS ALREADY INVESTED THE PROCEEDS OF LAST WEEK'S 1 BILLION OFFERING IN THE SAME TREASURY BILL TO WHICH THE TENDER OFFER HAS BEEN PEGGED AS INVESTORS SELL THEIR NOTES THE UTILITY WILL REMOVE AN EQUAL AMOUNT OF THESE TREASURY BILLS FROM THEIR HOLDINGS THUS PROVIDING A HEDGE AGAINST ANY PRICE CHANGES MEANWHILE IN THE BROADER CORPORATE BOND MARKET INVESTORS SNAPPED UP A TRIO OF NEW JUNK BOND OFFERINGS YESTERDAY REFLECTING A CONTINUED DEMAND FOR HIGHERCOUPON DEBT AND A FLOOD OF NEW MONEY INTO HIGHYIELD FUNDS IN SECONDARY TRADING MOST HIGHGRADE ISSUES ENDED LITTLE CHANGED TO UP 1/8 POINT IN MODERATE TRADING TRADERS SAID THAT THE GAP BETWEEN CORPORATE BOND YIELDS AND TREASURYS WITH COMPARABLE MATURITIES HAS BEGUN TO NARROW AGAIN AFTER WIDENING A LITTLE LAST WEEK INVESTORS PARTICULARLY IN THE RETAIL END ARE DOING A LITTLE BARGAIN HUNTING NOW AFTER LAST WEEK'S HUGE SUPPLY FORCED SPREADS TO WIDEN SAID A TRADER OF INTERMEDIATE BANK PAPER BANKAMERICA CORP SUBORDINATED NOTES DUE 2003 TRADED UNCHANGED FROM MONDAY AT 99 7/8 TO YIELD 687 OR 094 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WAS PRICED LAST WEEK AS 99855 SECURITIES TO YIELD 687 OR 084 POINT ABOVE THE TREASURY 10YEAR NOTE OFFERING NEW JUNK BONDS YESTERDAY WERE RALLY'S INC A LOUISVILLE KY FAST FOOD CHAIN AND INTERCITY PRODUCTS CORP OF DETROIT A LEADING SUPPLIER OF AIR CONDITIONING AND HEATING PRODUCTS FOR RESIDENTIAL AND LIGHT COMMERCIAL MARKETS LATER IN THE SESSION AMERICOLD CORP A LEADING SUPPLIER OF REFRIGERATED WAREHOUSE SPACE TAPPED THE MARKET AS WELL RALLY'S FLOATED A 75 MILLION ISSUE OF SEVENYEAR SENIOR NOTES PRICED AS 9 7/8 ISSUES AT 98705 TO YIELD 10125 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED THROUGH PAINEWEBBER INC THE ISSUE IS RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE PACE OF HIGHYIELD BOND SALES TYPICALLY LAGS INVESTMENTGRADE ISSUANCE BECAUSE NEW JUNK BOND DEALS GENERALLY REQUIRE DEALERS TO CONDUCT TIMECONSUMING PRESENTATIONS CALLED ROADSHOWS ACROSS THE COUNTRY TO DRUM UP INVESTOR INTEREST AN IMPORTANT FACTOR DRIVING JUNK BOND BUYING RECENTLY HAS BEEN THE HUGE INFLOW OF CASH INTO JUNK BOND FUNDS INVESTORS HAVE POURED AS MUCH AS 500 MILLION OF NEW MONEY EACH WEEK INTO THESE FUNDS AS THEY SEEK GREATER RETURNS IN A PERIOD OF RAPIDLY DECLINING INTEREST RATES THERE'S AN INCREDIBLE AMOUNT OF MONEY FLOWING INTO JUNK FUNDS ESPECIALLY THE NOLOAD FUNDS SAID DANIEL SMITH A COMANAGER OF VAN KAMPEN MERRITT'S HIGHYIELD FUND PRICES OF US TREASURY NOTES AND BONDS SEESAWED IN NARROW RANGES YESTERDAY TO END SLIGHTLY HIGHER IN UNEVENTFUL TRADING AS PLAYERS BEGAN TO LOOK AHEAD TO FRIDAY'S EMPLOYMENT REPORT THE REPORT WILL OFFER INVESTORS THE FIRST OFFICIAL LOOK AT THE STATE OF THE ECONOMY IN FEBRUARY THERE CONTINUED TO BE SOME RESIDUAL IMPACT ON TRADING FROM FRIDAY'S WORLD TRADE CENTER BOMB BLAST AS CANTOR FITZGERALD SECURITIES CORP WAS STILL UNABLE TO GET ITS PRICE SCREENS UP AND RUNNING AS THE SCHEDULED RELEASE OF THE FEBRUARY EMPLOYEMENT REPORT NEARS HOWEVER THE IMPACT OF CANTOR'S ABSENCE COULD GROW ALTHOUGH MAJOR TRADING FIRMS HAVE ACCESS TO OTHER BOND BROKERS SMALLER OPERATIONS AND INSTITUTIONAL INVESTORS TEND TO DEPEND MORE HEAVILY ON CANTOR'S BROKER SCREENS FOR LIVE PRICING INFORMATION IF THESE INVESTORS BECOME NERVOUS ABOUT LARGE SHIFTS IN TREASURY PRICES IN REACTION TO THE EMPLOYMENT REPORT THEY MAY MOVE MORE QUICKLY TO SELL THEIR HOLDINGS THAN THEY WOULD IF CANTOR'S PRICING SERVICE WERE BACK ON LINE ROBERT M MERCORELLA A MANAGING DIRECTOR AT THE BIG INTERDEALER BROKER SAID YESTERDAY THAT HE WAS HOPEFUL THAT WE'LL HAVE ALL TREASURY OPERATIONS UP BY SOMETIME TODAY WITH BROKER AND PRICING ACTIVITY FOR CORPORATE MUNICIPAL AND MORTGAGEBACKED SECURITIES RESUMING WITHIN THE NEXT 48 HOURS CANTOR HAS RELOCATED MUCH OF ITS OPERATIONS TO SPACE PROVIDED BY SALOMON BROTHERS INC IN A SECTOR OF THE WORLD TRADE CENTER COMPLEX UNDAMAGED BY THE BLAST AND DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL THE CANTOR PRICING SERVICE IS PROVIDED TO SUBSCRIBERS THROUGH THE ELECTRONIC FINANCIAL INFORMATION SERVICE RUN BY TELERATE A UNIT OF DOW JONES FRIDAY'S FIGURES ON THE LABOR MARKET SITUATION ARE SEEN AS CRITICAL FOR THE MARKET POSSIBLY DETERMINING IF IT IS GOING TO BE ABLE TO CONTINUE ITS RALLY OR IF PRICES WILL BE HEADED FOR A FALL FRIDAY'S NUMBERS ARE GOING TO CALL THE NEXT DIRECTION FOR THE MARKET SAID JOEL KAZIS A MANAGING DIRECTOR AT AT UBS SECURITIES INC EXPECTATIONS FOR THE FEBRUARY REPORT CENTER ON NONFARM PAYROLL EMPLOYMENT SHOWING A MODERATE INCREASE OF ABOUT 125000 WHICH WOULD FOLLOW AN INCREASE OF 106000 IN JANUARY MUCH OF YESTERDAY'S MUNICIPAL BOND MARKET ACTION TOOK PLACE IN THE PRIMARY SECTOR WHERE MORE THAN 1 BILLION OF ISSUES WERE PRICED BUT THE DAY'S AMPLE SUPPLY DIDN'T INCLUDE AN EXPECTED 11 BILLION ISSUE BY THE SAN JOAQUIN HILLS CALIF TRANSPORTATION CORRIDOR AGENCY THE OFFERING FOR WHICH FIRST BOSTON CORP IS MANAGING UNDERWRITER WAS PUT OFF UNTIL TODAY WE FELT THAT ALL POTENTIAL BUYERS DID NOT HAVE A CHANCE TO GET THROUGH THE DOCUMENTATION OFFICIAL STATEMENTS DID NOT HIT THE EAST COAST UNTIL TUESDAY AND WEDNESDAY OF LAST WEEK SAID WALTER KREUTZEN EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION FOR THE AGENCY PROCEEDS FROM THE BOND SALE WILL BE USED TO PURCHASE PROPERTY AND FOR DESIGN AND CONSTRUCTION OF 145 MILES OF LIMITEDACCESS TOLL ROAD THE FIRST PUBLIC TOLL ROAD BUILT IN CALIFORNIA FITCH INVESTORS SERVICE INC HAS RATED PART OF THE OFFERING TRIPLEB ITS LOWEST INVESTMENTGRADE RATING MEANWHILE MUNICIPAL BOND PRICES WERE NARROWLY MIXED AT THE CLOSE AMONG ACTIVELY TRADED ISSUES THE UTAH INTERMOUNTAIN POWER AGENCY'S 5 SERIES A POWER SUPPLY REVENUE REFUNDING BONDS OF 2023 FINISHED 1/8 POINT LOWER AT 90 7/8 TO YIELD 561 THERE WAS LITTLE TRADING IN SECONDARY MORTGAGE SECURITIES AS THE MARKET AWAITED THE RESUMPTION OF ACTIVITY BY BOND BROKER CANTOR FITZGERALD SECURITIES MEANWHILE 16 BILLION IN FEDERAL HOME LOAN MORTGAGE CORP REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE ANNOUNCED 12 BILLION FROM THREE NEW DEALS AND 400 MILLION FROM INCREASES TO TWO OUTSTANDING OFFERINGS IN THE DAY'S SCANT TRADING PRICES OF 7 SECURITIES FOR MARCH DELIVERY ROSE MARGINALLY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES WERE 3/32 FIRMER AT 101 15/32 FREDDIE MAC GOLD ISSUES GAINED 1/32 TO 100 31/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ADVANCED 1/32 TO 100 24/32 THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9303030064 930125 BUY THOSE ZIPPOS CATCH SOME WAVES VISIT A WAR MUSEUM VIETNAM LOOKING FOR DOLLARS TAKES ON AN UNUSUAL ROLE AN AMERICAN TOURIST TRAP BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL HO CHI MINH CITY VIETNAM DAN THOMAS A GRITTY EXMARINE STANDS IN THE OLD AMERICAN EMBASSY COMPOUND IN FULL COMBAT GEAR EYEING A CROWD OF COWERING VIETNAMESE OUTSIDE THE IRON GATE ACROSS THE STREET BLACK SMOKE RISES FROM BURNING TIRES AS VIET CONG TROOPS DRAW NEARER TANKS FLYING THE YELLOW REDSTRIPED FLAG OF SOUTH VIETNAM RACE BY THE 44YEAROLD MR THOMAS WHO ONCE FOUGHT HERE IS BACK ON VACATION AND LIVING A FANTASY MIDHOLIDAY HE WAS ASKED TO BE AN EXTRA IN EFFECT PLAYING HIMSELF IN A MOVIE ABOUT THE VIETNAM WAR MAGICALLY THE YEARS MELT AWAY A LEMONYELLOW 1967 MUSTANG CONVERTIBLE WITH A PLAYBOY RABBIT VIP STICKER ON ITS REAR BUMPER SITS IN THE EMBASSY PARKING LOT AS MR THOMAS STUFFS A PACK OF MARLBOROS IN HIS HELMET BAND HE MUTTERS USED TO PUT AN ACE OF SPADES IN HERE THE VC ALWAYS THOUGHT IT WAS BAD LUCK FOR THEM IT WASN'T HARD FOR THE SOUTH KOREAN FILM COMPANY MAKING THIS MOVIE TO FIND EXTRAS THEY JUST PASSED THE WORD AT KIM'S CAFE WHERE THE AMERICANS HANG OUT INCLUDING SOME WHO FOUGHT HERE TWO DECADES EARLIER THEY OFFERED 30 A DAY PLUS A 5 BONUS TO ANYONE WHO WOULD SUBMIT TO A MILITARY CREW CUT THAT'S A LOT OF MONEY IN A NEIGHBORHOOD WHERE HOTEL ROOMS GO FOR 3 A NIGHT AND KIM'S CHARGES A DOLLAR FOR A STEAK FRIES AND A FRUIT SHAKE TRAN KIM LOAN SAYS THE AMERICANS STARTED SHOWING UP AT HER CAFE ABOUT A YEAR AGO SOME ARE VETERANS LIKE MR THOMAS OTHERS LEARNED ABOUT THE WAR IN A SCHOOLBOOK FOR BOTH KINDS OF VISITORS VIETNAM IS SULTRY GRACEFUL AND CHEAP CARRYING LITTLE OF THE NIGHTMARE IMAGERY LONG ASSOCIATED WITH IT VIETNAM IS AWESOME EXCLAIMS JOHN DANA A 27YEAROLD AMERICAN WHO HAS COME HERE FROM NEPAL WITH HIS NORWEGIAN GIRLFRIEND INGRID IT'S THE ULTIMATE VACATION WHEN YOU GET TIRED OF THE BEACHES THERE ARE PLACES LIKE MUSEUMS AND THEATERS TO SEE THIS PAST CHRISTMAS YOUNG CALIFORNIANS LOADED THEIR SURFBOARDS ON THE AIRPLANE TO DA NANG WHERE THE SURF WAS UP AT CHINA BEACH WITH AN AMERICAN TRADE EMBARGO IN PLACE VIETNAM WARMLY WELCOMES THE AMERICANS AND THE DOLLARS THEY BRING TOURISM ALSO INTRODUCES HUNDREDS OF POTENTIAL US INVESTORS TO A COUNTRY THAT HAS BEEN RELATIVELY ISOLATED FOR NEARLY 20 YEARS SOUVENIR SHOPS HAWK TSHIRTS THAT SAY GOOD MORNING VIETNAM OR DISPLAY PICTURES OF HO CHI MINH THERE ALSO IS A BOOMING BUSINESS IN PERIOD ZIPPO LIGHTERS NO ONE KNOWS FOR SURE WHETHER THEY WERE MANUFACTURED LAST WEEK OR LEFT BEHIND BY THE US SOLDIERS DECADES AGO BUT THEY ARE TARNISHED AND SCRATCHED AND BEAR SUCH INSCRIPTIONS AS AIRBORNE AND 1ST CAV DIV THEY SELL FOR 6 UP FROM 3 A YEAR AGO STREET DEALERS SAY DONALD DONZE 46 WHO WAS A US AIR FORCE CREW CHIEF ON C130 CARGO PLANES HERE IN 1966 SAYS HE CAME BACK TO TAKE A LOOK AND FALL IN LOVE WITH SAIGON AGAIN BUT HE HAS ALSO GATHERED INFORMATION FROM THE ZIPPO COMPANY TO VERIFY THE LIGHTERS' AUTHENTICITY BY CHECKING THE SERIAL NUMBERS STAMPED ON THE BOTTOM HE HAS JUST BOUGHT 250 WARERA ZIPPOS WHICH HE SAYS WILL FETCH 50 EACH IN EUROPE OR THE US NO ONE IS HAPPIER TO SEE THE VISITING AMERICANS THAN PHAM MINH HOANG DURING THE WAR HE WAS AN INTERPRETER FOR THE US ARMY WHEN SAIGON FELL HE WAS SHIPPED OFF TO A REEDUCATION CAMP FOR SEVERAL MONTHS LIKE THOUSANDS OF OTHER VIETNAMESE TAINTED BY ASSOCIATION WITH AMERICANS THE ONLY WORK HE COULD FIND WHEN HE RETURNED WAS DRIVING A CYCLO A BICYCLE WITH A PASSENGER SEAT IN FRONT HE BARELY SCRATCHED OUT A DOLLAR A DAY TRANSPORTING RUSSIANS AROUND TOWN NOW MR PHAM HAS WORKED UP A REGULAR COOK'S TOUR OF OLD SAIGON FOR RETURNING US SOLDIERS AS HE PEDALS DOWN BUSTLING HAM NGHI STREET HE POINTS OUT THE ORIGINAL AMERICAN EMBASSY HERE EXPLAINING THAT IT WAS MOVED FOR SECURITY REASONS AFTER A VIET CONG BOMB WAS PLANTED THERE DURING A VISIT BY DEFENSE SECRETARY ROBERT MCNAMARA FURTHER ALONG IS THE OPULENT REUNIFICATION PALACE ONCE THE RESIDENCE OF THE USBACKED PRESIDENTS OF SOUTH VIETNAM A US HELICOPTER STILL SITS ON THE ROOF BUT THE DE RIGUEUR STOP FOR AMERICANS EXPLAINS MR PHAM IS THE WARCRIMES MUSEUM EVANS WARD 25 WHO WEARS A CHICAGO BULLS TSHIRT IS HERE WITH HIS YOUNGER BROTHER SCOTT THEIR FATHER WAS A MARINE WHO FINISHED HIS TOUR OF DUTY ONLY MONTHS BEFORE HIS UNIT SHIPPED OUT TO VIETNAM BUT THEIR FATHER'S FRIENDS HAVE TOLD THEM TALES OF VIETNAM NOW HE SAYS WE'RE SEEING THE WAR ENTIRELY FROM THE OTHER POINT OF VIEW THE MUSEUM'S WALLS ARE LINED WITH GRAINY BLACK AND WHITE PHOTOGRAPHS OF VIETNAMESE CIVILIANS DISFIGURED BY PHOSPHORUS BOMBS AND OF US SOLDIERS TORTURING BEHEADING OR OTHERWISE MUTILATING VIETNAMESE A GLASS FRAME DISPLAYS SIX US BATTLE RIBBONS AWARDED ACCORDING TO THE CAPTION TO SGT WILLIAM BROWN OF THE 503RD INFANTRY THE CAPTION SAYS THE FORMER SOLDIER DONATED THEM TO THE PEOPLE OF A UNITED VIETNAM AND QUOTES HIM SAYING I WAS WRONG I AM SORRY OUTSIDE THERE IS A SMALL ARSENAL OF ABANDONED US EQUIPMENT INCLUDING AN M41 TANK AN A37B BOMBER AND A 40TON BULLDOZER A SIGN SAYS THE BULLDOZER WAS USED FOR LEVELING HABITATION GARDENS RICE FIELDS WOODS CEMETERIES ETC BUT IN THE NEW COMMERCIAL SPIRIT OF HO CHI MINH CITY THERE ALSO IS THE WARTIME SOUVENIR SHOP WHICH SELLS BOOTLEGGED KODAK FILM THERE IS PLENTY OF NIGHT LIFE TO HELP VISITING AMERICANS WASH AWAY LINGERING GUILT OR REMINISCE AT A BAR CALLED APOCALYPSE NOW THE WALLS ARE BLACK AND THE OVERHEAD FAN FORMS THE BLADES OF THE HELICOPTER PAINTED ON THE CEILING EARSPLITTING MUSIC BY THE DOORS MIXES WITH THE PUNGENT AROMA OF MARIJUANA THERE IS A BAR TWO DOORS DOWN CALLED B475 AS IN BEFORE 1975 THE YEAR THE AMERICANS LIMPED OUT OF SAIGON MEANWHILE BACK AT THE AMERICAN EMBASSY MR THOMAS AND THE TROOPS ARE TAKING A BREAK MR THOMAS IS MESMERIZING A GROUP OF YOUTHFUL AMERICANS AND EUROPEANS WITH HIS OWN WAR STORIES THEY GAPE AS HE SHOWS THEM THE DEEP SCAR ON THE TOP OF HIS LEFT FOREARM AND THE BULGE UNDERNEATH IT WHERE A BULLET IS STILL LODGED I ALWAYS WANTED TO COME BACK HERE SAYS MR THOMAS WHO SERVED 20 YEARS IN THE MARINES AND NOW LIVES IN RIVERSIDE CALIF I'VE NEVER FELT BITTER IF ANYONE HAS A RIGHT TO BE MAD IT'S THE SOUTH VIETNAMESE BUT IT TURNS OUT OTHER DREAMS ARE DRAWING MR THOMAS BACK TO VIETNAM TWENTYFIVE YEARS AGO HIS SQUAD CHASED SOME VIET CONG GUERRILLAS INTO A CAVE IN THE CENTRAL COASTAL REGION THEY NEVER FOUND THE VC WHO PROBABLY ESCAPED THROUGH A SECRET EXIT BUT THEY DID FIND A CACHE OF ABOUT 200 JEWELED JAPANESE SAMURAI SWORDS AN OFFICER ORDERED THEM TO LEAVE THE BOOTY AND SEAL THE CAVE SHUT WITH DYNAMITE A FEW YEARS AGO MR THOMAS SAW A TELEVISION PROGRAM ABOUT SUCH SWORDS AND LEARNED THAT THEY MAY BE WORTH THOUSANDS OF DOLLARS EACH NOW HE THINKS HE MIGHT JUST REMEMBER WHERE THE CAVE IS AND SAYS WITH A SMILE I FIGURED THAT AS LONG AS I WAS COMING HERE I MIGHT JUST MOSEY UP AROUND THERE SEE RELATED LETTER LETTERS TO THE EDITOR WARCRIMES MUSEUM JUST PROLONGS HATRED WSJ MARCH 2 1993 9301250043 9303020186 930302 BANISTER UNIT RECEIVES CONTRACT TORONTO BANISTER INC SAID ITS CIVIL CONSTRUCTION UNIT RECEIVED A CONTRACT VALUED AT 147 MILLION CANADIAN DOLLARS US118 MILLION TO BUILD THE ROSEAU DAM IN ST LUCIA BANISTER A CONSTRUCTION COMPANY SAID THE DAM IS SCHEDULED FOR COMPLETION BY THE SPRING OF 1995 9303020185 930302 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY HIGHER ON SIGNS GERMAN RATES ARE HEADED LOWER SOON BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY HIGHER AS THE MARKET FOCUSED ON THE LIKELIHOOD OF LOWER GERMAN INTEREST RATES AFTER THE WEEKEND MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS YIELDED LITTLE GUIDANCE ON EXCHANGE RATES STERLING WAS THE MAJOR EXCEPTION TO THE DOLLAR'S CLIMB BUT DEALERS SAID THE POUND'S RISE REFLECTED THE WEAKNESS OF THE MARK MORE THAN ANY NEWFOUND ATTRACTION TO STERLING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16546 MARKS UP FROM 16455 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11874 YEN UP FROM 11825 YEN STERLING WAS TRADING AT 14390 UP FROM 14240 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11857 YEN AND AT 16552 MARKS THERE ARE PEOPLE INTERESTED IN BUYING THE DOLLAR BECAUSE OF THE REALITY OF CONTINUING LOWER GERMAN INTEREST RATES SAID MICHAEL SCHAEFER FOREIGN EXCHANGE MANAGER AT NORWEST BANK CORP IN MINNEAPOLIS EXPECTATIONS THAT SATURDAY'S G7 MEETING MIGHT RESULT IN A CALL FOR A STRONGER YEN AS A MEANS TO REDUCE JAPAN'S TRADE SURPLUS HAD PRESSURED THE DOLLAR LOWER ACROSS THE BOARD IN RECENT WEEKS AS INVESTORS ANTICIPATED THE YEN'S GAINS BUT G7 FINANCE MINISTERS STUDIOUSLY AVOIDED COMMENTING ON EXCHANGE RATES AFTER THEIR MEETING AS A RESULT DEALERS SAID THE MARKET TURNED BACK TO ECONOMIC FUNDAMENTALS YESTERDAY AND THOSE FAVORED THE DOLLAR MOST IMPORTANT DEALERS SAID WERE THE LATEST SIGNS THAT GERMAN INTEREST RATES ARE HEADED LOWER SOON SATURDAY BUNDESBANK PRESIDENT HELMUT SCHLESINGER TOLD REPORTERS GERMAN MONEY MARKET RATES CURRENTLY AT 85 ARE LIKELY TO FALL IN THE COMING WEEKS HE NOTED THAT THE BUNDESBANK'S DECISION LAST MONTH TO REDUCE BANK RESERVE REQUIREMENTS WOULD ADD LIQUIDITY TO THE MARKET ALLOWING RATES TO SLIP MR SCHLESINGER'S COMMENTS ADDED TO SPECULATION THE BUNDESBANK COULD CUT ITS OFFICIAL INTEREST RATES AT THURSDAY'S MEETING OF THE CENTRAL BANK COUNCIL DEALERS SAID ALTHOUGH SOME PLAYERS NOTED THAT MR SCHLESINGER SEEMED NOT TO BE SIGNALING A CHANGE IN POLICY DEALERS SAID WIDESPREAD EXPECTATIONS OF A RATE CUT APPEARED TO OVERSHADOW ANY SKEPTICISM YESTERDAY IT'S SO LONG ANTICIPATED AND AWAITED THIS GERMAN EASING THAT I THINK PEOPLE ARE DISREGARDING BAD NEWS SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP THIS SENTIMENT ALSO DWARFED ANY CONCERN A REPORT OF HIGHERTHANEXPECTED GERMAN INFLATION MIGHT HAVE CAUSED DEALERS SAID CONSUMER PRICES IN WESTERN GERMANY ROSE 04 IN THE MONTH TO MIDFEBRUARY GAINING 42 FROM A YEAR EARLIER PRELIMINARY FIGURES SHOWED ECONOMISTS HAD BEEN EXPECTING A MONTHLY INCREASE OF 03 AND AN INCREASE OF 41 FROM A YEAR EARLIER THE BUNDESBANK HAS LONG CITED INFLATIONARY PRESSURES AS A MAJOR IMPEDIMENT TO LOWERING INTEREST RATES THE DOLLAR ALSO ROSE AGAINST THE YEN YESTERDAY BUT MR TUCKER SAID THE YEN'S OUT OF FOCUS NOW THAT THE G7 MADE NO OFFICIAL STATEMENT ON IT BUT DEALERS SAID THE US CURRENCY ISN'T LIKELY TO MAKE UP ALL THE GROUND IT LOST TO THE YEN AHEAD OF THE G7 MEETING EVERYBODY'S BEEN EXPECTING THIS MASSIVE CORRECTION AND I DON'T THINK IT WILL OCCUR SAID ALBERT SORIA FOREIGN EXCHANGE MANAGER AT KANSALLIS OSAKE PANKKI IN NEW YORK HE SAID CONTINUING REPATRIATION OF FOREIGN ASSETS BY JAPANESE COMPANIES AHEAD OF THE END OF THE FISCAL YEAR MARCH 31 WILL KEEP THE DOLLAR FROM CLIMBING BACK TOWARD 125 YEN WHERE IT STOOD BEFORE G7 SPECULATION TOOK HOLD STERLING MEANWHILE REBOUNDED YESTERDAY AS INVESTORS BOUGHT POUNDS TO COVER BETS THAT THE CURRENCY WOULD FALL AFTER A SELLOFF LAST WEEK DEALERS SAID THE GAINS WERE MOST NOTICEABLE AGAINST THE MARK WITH THE POUND QUOTED AT 23800 MARKS YESTERDAY UP FROM 23432 MARKS FRIDAY 9303020184 930302 COLUMBIA GAS UNIT PROPOSES REACTIVATION OF MARYLAND FACILITY WILMINGTON DEL COLUMBIA GAS SYSTEM INC'S LIQUEFIED NATURAL GAS UNIT PROPOSED THE REACTIVATION OF ITS CHESAPEAKE BAY TERMINAL RESPONDING TO CHANGES IN THE GAS INDUSTRY COLUMBIA LNG CORP SAID IT FILED AN APPLICATION WITH THE FEDERAL ENERGY REGULATORY COMMISSION SEEKING AUTHORITY TO REOPEN ITS LIQUEFIED NATURAL GAS TERMINAL NEAR COVE POINT MD A NEW LIQUEFACTION FACILITY WOULD BE BUILT AS PART OF THE TERMINAL'S REACTIVATION SERVICES WOULD BEGIN IN FALL 1994 MANY GAS INDUSTRY OFFICIALS SAY IMPORTING LIQUEFIED NATURAL GAS IS WRONGHEADED BECAUSE OF THE CONVERSION EXPENSE ABOUT 50 CENTS PER THOUSAND CUBIC FEET SUCH CONVERSION COSTS SEEMED PROHIBITIVE JUST A YEAR AGO WHEN US GAS PRICES FELL BELOW 1 PER THOUSAND CUBIC FEET BUT NOW WITH DOMESTIC GAS PRICES NUDGING 170 CHEAPER FOREIGN FUEL IS IN DEMAND EVEN AFTER ADDING ON THE CONVERSION COSTS A SPOKESMAN FOR THE COMPANY SAID COLUMBIA DOESN'T INTEND TO IMPORT ANY LIQUEFIED NATURAL GAS ON ITS OWN BEHALF MERELY TO ACT AS A STORAGE FACILITY FOR ITS CUSTOMERS MOSTLY GAS DISTRIBUTORS THOSE DISTRIBUTORS COULD IMPORT LNG TO THE TERMINAL OR SEND THEIR OWN GAS TO THE TERMINAL FOR STORAGE VIA PIPELINE THE DISTRIBUTORS THEN WOULD DRAW GAS FROM COLUMBIA'S FACILITY DURING PEAKDEMAND PERIODS UNDER NEW FEDERAL REGULATIONS DUE TO TAKE EFFECT LATER THIS YEAR DISTRIBUTORS MUST TAKE MORE RESPONSIBILITY FOR ENSURING THEIR GAS SUPPLIES COLUMBIA ESTIMATED THE COST OF REACTIVATING THE TERMINAL AT 55 MILLION INCLUDING CONSTRUCTION OF THE NEW LIQUEFACTION FACILITY LIQUEFIED NATURAL GAS ACCOUNTS FOR LESS THAN 1 OF THE OVERALL US NATURAL GAS MARKET ACCORDING TO THE AMERICAN PETROLEUM INSTITUTE AN INDUSTRY RESEARCH GROUP THERE ARE CURRENTLY ONLY FOUR LIQUEFIED GAS STORGAGE AND CONVERSION TERMINALS IN THE US 9303020183 930302 COMMODITIES COMMODITY EXCHANGES OPEN FOR TRADING WORRIES OVER COMPUTER CURTAIL SESSIONS BY WARREN GETLER AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NEW YORK'S FIVE BIG COMMODITY EXCHANGES MANAGED TO OPEN FOR TRADING AT THEIR WORLD TRADE CENTER HEADQUARTERS BUT ONLY WITH SHARPLY CURTAILED SESSIONS EXCHANGE OFFICIALS SAID THEY CUT SHORT TRADING SESSIONS IN OIL GOLD COFFEE AND COTTON AMONG OTHER COMMODITIES BECAUSE OF CONCERNS ABOUT THE POTENTIAL OVERHEATING OF THE BIG COMPUTER USED BY ALL FIVE EXCHANGES THE COMPUTER IS HOUSED ON THE NINTH FLOOR OF FOUR WORLD TRADE CENTER WHICH WAS WITHOUT AIR CONDITIONING FOLLOWING THE BOMB EXPLOSION FRIDAY THAT SHUT DOWN THE CENTER'S TWO MAIN TOWERS UNTIL THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY RESTORES AIR CONDITIONING TO THE BUILDING TRADING HOURS ARE LIKELY TO REMAIN ABRIDGED SAID Z LOU GUTTMAN CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE THE MERC THE WORLD'S LARGEST ENERGY MARKET CUT ITS NORMAL CRUDEOIL FUTURES TRADING HOURS BY MORE THAN HALF AND PLANS TO OPERATE ON THE SAME SCHEDULE TODAY BETWEEN 1030 AM AND 130 PM NORMAL TRADING HOURS ARE FROM 945 AM TO 310 PM JOSEPH J O'NEILL PRESIDENT OF THE COTTON EXCHANGE SAID DAILY TRADING VOLUME ON THAT EXCHANGE WAS OFF ABOUT 40 BECAUSE OF THE SHORTENED TRADING HOURS THE COFFEE SUGAR & COCOA EXCHANGE GOT A LATE START ON TRADING BECAUSE OF BACKLOGS IN CLEARING OPERATIONS THAT RESULTED FROM THE SUDDEN SHUTDOWN OF BUSINESS FRIDAY DESPITE THE SHORTENED SESSIONS COMPANIES THAT USE THE NEW YORK FUTURES MARKETS TO HEDGE AGAINST PRICE FLUCTUATIONS IN COMMODITIES SAID THEY HAD EXPERIENCED LITTLE DIFFICULTY IN OBTAINING ACCURATE PRICE INFORMATION BUT SOME MAJOR USERS SAID THEY WEREN'T HAPPY WITH THE REDUCED TRADING HOURS WE'RE NORMALLY USED TO THE MARKET BEING OPEN BETWEEN 915 AM AND 2 PM SAID JOHN BUNKER VICE PRESIDENT OF CARGILL COFFEE ONE OF THE COUNTRY'S LARGEST GREENCOFFEE TRADING COMPANIES IN GENERAL ANY MARKET THAT IS CLOSED FOR OVER HALF OF ITS TRADING HOURS CAN BE AN INCONVENIENCE BUT HE ADDED THAT TAKING BUSINESS ELSEWHERE HAD ITS PROBLEMS TOO WHILE LONDON HAS A COFFEE FUTURES MARKET OF ITS OWN KNOWN AS THE FOX IT TRADES ONLY IN ROBUSTA A BLEND OF COFFEE THAT IS NOT POPULAR IN THE US MR BUNKER SAID DREW DICKSON A CRUDEOIL TRADER WITH GSC ENERGY OF ATLANTA SAID HE WAS COPING WITH THE SHORTENED TRADING HOURS BY CRAMMING THE TRANSACTIONS INTO THE THREE HOURS OF TRADING AND THEN MAKING ANY ADDITIONAL TRADES THROUGH THE COMPANY'S LONDON DESK ON FRIDAY SOME CLIENTS NEEDED TO SELL SOME CRUDE SO WE SOLD IT IN LONDON HE SAID HE NOTED THAT THE PRICE SPREAD IS NOT THAT GREAT BETWEEN THE NORTH SEA BRENT BLEND OF CRUDE TRADED IN LONDON AND THE WEST TEXAS INTERMEDIATE BLEND TRADED ON THE NEW YORK MERC NEW YORKBASED FUTURES TRADERS AND BROKERS WHO APPEARED TO HAVE RETURNED IN FULL FORCE IN THE WAKE OF FRIDAY'S DEVASTATING BLAST SAID THERE WAS MUCH CONFUSION ABOUT PROCESSING FRIDAY'S UNFINISHED BUSINESS COMPOUNDED BY A FEW COMPUTER GLITCHES TRADING HAD BEEN CUT SHORT FRIDAY AFTER ELECTRICITY TO THE WORLD TRADE CENTER COMPLEX WAS CUT TO ALLOW FIREFIGHTERS TO BATTLE BLAZES CAUSED BY THE EXPLOSION THERE WERE SOME MINOR EARLY DIFFICULTIES WITH PRICING BUT THEY DIDN'T IMPEDE TRADING SAID GARY LAPAYOVER AN OIL TRADER AND CHAIRMAN OF THE NEW YORK MERC'S FLOOR COMMITTEE A DEAN WITTER EXECUTIVE SAID THAT HIS FIRM HAD TO SPEND OVER 2500 TO LIQUIDATE TEN HEATING OIL FUTURES CONTRACTS THAT HAD BEEN ORDERED BY AN UNIDENTIFIED CUSTOMER THE FIRM WAS UNABLE TO IDENTIFY THE CLIENT BECAUSE THE ORDER HAD BEEN PLACED DIRECTLY TO DEAN WITTER'S FLOOR BROKERS MINUTES BEFORE THE SUDDEN CLOSE OF BUSINESS FRIDAY RATHER THAN TAKE DELIVERY OF THE MARCH HEATING OIL CONTRACTS WHICH WERE DUE TO EXPIRE MONDAY DEAN WITTER DECIDED TO TAKE THE LOSS IT CERTAINLY COULD HAVE BEEN MUCH WORSE TODAY ON THE TRADING FLOOR SAID EDWARD KASSAKIAN SENIOR VICE PRESIDENT AT DEAN WITTER THE TRADING DISCREPANCIES WERE NOT NEARLY AS GREAT AS WE ANTICIPATED MR GUTTMAN THE NEW YORK MERC CHAIRMAN SAID THAT A FULL DAY'S CLOSURE OF THE EXCHANGE WOULD HAVE COST THE OIL TRADING COMMUNITY 25 MILLION AND AN EXTENDED SHUTDOWN WOULD HAVE BEEN DEVASTATING IT WOULD HAVE CAUSED A MAJOR DISLOCATION OF BUSINESS HE SAID WITH THE BENEFICIARY BEING THE INTERNATIONAL PETROLEUM EXCHANGE IN LONDON THE MERC CHAIRMAN CONCEDED THAT SOME BUSINESS EARLY MONDAY WAS PROBABLY CEDED TO THE IPE BECAUSE OF THE DELAY IN THE RESUMPTION OF TRADING WHILE THE COMMODITY EXCHANGES WERE ABLE TO REOPEN BROKERAGE FIRMS HOUSED IN THE SHUTTERED TWIN TOWERS HAD TO SCRAMBLE OVER THE WEEKEND TO MAKE OTHER ARRANGEMENTS FOR DOING BUSINESS CANTOR FITZGERALD FOR INSTANCE FLEW FIVE OF ITS OVERTHECOUNTER STOCK TRADERS TO ITS LOS ANGELES OFFICE AND SET UP BOND TRADERS IN TEMPORARY QUARTERS MADE AVAILABLE IN NEW YORK AND NEW JERSEY BY OTHER FIRMS INCLUDING DOW JONES PUBLISHER OF THE WALL STREET JOURNAL AND SALOMON BROTHERS SALOMON MADE SPACE ON ITS OWN MASSIVE BOND TRADING FLOOR FOR MORE THAN 60 EMPLOYEES OF TWO COMPETITORS YESTERDAY DEAN WITTER REYNOLDS INC AND EURO BROKERS INC AND AGREED TO CONSTRUCT A SPECIAL TRADING AREA ON ANOTHER FLOOR FOR 200 CANTOR BOND BROKERS DONALD RA MARSHALL PRESIDENT OF EURO BROKERS INC SAID THAT 55 OF HIS EMPLOYEES BEGAN TRADING NOTES AND BONDS INCLUDING SOME EXOTIC TAXABLE DERIVATIVE SECURITIES AT 7 AM YESTERDAY AT SALOMON ON FRIDAY MR MARSHALL AND 200 OF HIS EMPLOYEES TREKKED DOWN MORE THAN 30 SMOKEFILLED FLOORS MINUTES AFTER THE BLAST KNOCKED OUT ALL POWER TO TWO WORLD TRADE CENTER EARLY SUNDAY AFTERNOON WHEN IT WAS CLEAR THAT THE TOWERS WOULD NOT BE REOPENING FOR BUSINESS THIS WEEK MR MARSHALL CALLED SALOMON TO SEE IF THEY HAD SOME SPACE TO SPARE BY 6 AM YESTERDAY SALOMON HAD SET UP 40 TRADING TURRETS WITH MARKET PRICING SERVICES AND 32 PHONE LINES WITH MULTIPLE EXTENSIONS ON THE EDGE OF ITS MASSIVE TRADING FLOOR IT'S NOW EURO BROKERS/SALOMON JOKED MR MARSHALL AS HE HANDED OUT HIS BUSINESS CARDS SMUDGED WITH SOOT FROM THE BLAST MR MARSHALL SAID THAT HE AND SALOMON HAVE YET TO SETTLE ON A PRICE FOR THE EMERGENCY SERVICES TED ZELLER HEAD OF THE CORPORATE BOND SYNDICATE AT DEAN WITTER FELT A BIT OUT OF PLACE HE AND ABOUT A HALF DOZEN OTHER MEMBERS OF THE COMPANY'S SYNDICATE GROUP WERE SITTING JUST A FEW FEET AWAY FROM A PHONE MARKED FOR THE USE ONLY OF SALOMON CHAIRMAN AND CHIEF EXECUTIVE OFFICER DERYCK MAUGHAM MEANWHILE CANTOR'S COMPETITION IN THE BUSINESS OF PROVIDING LIVE BOND PRICES DIDN'T WASTE ANY TIME CAPITALIZING ON CANTOR'S MISFORTUNE TO GAIN EXPOSURE LAURENCE JONES PRESIDENT OF GOVPX OWNED BY A GROUP OF BOND BROKERS SAID THAT FOR THIS WEEK ONLY SUBSCRIBERS TO CERTAIN ELECTRONIC NEWS SERVICES WOULD RECEIVE GOVPX'S PRICING SERVICE FREE OF CHARGE WE WILL BEGIN CHARGING FOR THE SERVICE MONDAY HE ADDED PRECIOUS METALS IN ABBREVIATED TRADING MONDAY PRECIOUS METALS FUTURES PRICES ENDED NARROWLY MIXED ON THE COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE 20 CENTS TO 32930 AN OUNCE SILVER FOR MARCH DELIVERY FELL 13 CENTS TO 3558 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE THE ACTIVELY TRADED APRIL PLATINUM CONTRACT FELL 70 CENTS TO 34580 AN OUNCE ENERGY LIGHT SWEET CRUDE FOR APRIL DELIVERY FELL ONE CENT TO 2060 A BARREL MONDAY IN ABRIDGED TRADING ON THE NEW YORK MERCANTILE EXCHANGE THE ACTIVELY TRADED APRIL CONTRACT HAD BEEN QUOTED AT 2055 A BARREL AROUND MIDDAY FRIDAY SHORTLY BEFORE TRADING WAS HALTED NEW YORK MERC CRUDE FOR APRIL DELIVERY HAS RECENTLY TRADED AS MUCH AS 170 ABOVE BRENT CRUDE ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE APRIL NORTH SEA BRENT FUTURES TRADED ABOVE 19 IN MIDDAY ACTION IN LONDON MONDAY 9303020182 930302 HYUNDAI RAISES '93 MODEL PRICES FOUNTAIN VALLEYCALIF HYUNDAI MOTOR CO ANNOUNCED MIDYEAR PRICE INCREASES OF 11 TO 17 ON MOST OF ITS 1993 MODELS THE SOUTH KOREAN AUTO MAKER SAID THE PRICE INCREASES STEMMED FROM THE STRENGTH OF THE WON AGAINST THE DOLLAR THE EXCEL MODEL WILL START AT 6899 AN INCREASE OF 100 OR 15 THE SCOUPE WILL HAVE A BASE PRICE OF 9169 AN INCREASE OF 100 OR 11 THE ELANTRA WILL HAVE A BASE PRICE OF 9149 AN INCREASE OF 150 OR 17 THE PRICE OF HYUNDAI'S TOPOFTHELINE SONATA SEDAN WILL STAY AT 12399 9303020181 930302 INTERNATIONAL BRAZIL'S FRANCO NAMES HIS THIRD FINANCE MINISTER RESENDE SUCCEEDS HADDAD WITH PRESIDENT PUSHING FOR NEW INFLATION FIGHT BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO PAULO HADDAD RESIGNED AS BRAZIL'S FINANCE MINISTER AND WAS SUCCEEDED BY ELISEU RESENDE PROMPTING SPECULATION THERE WILL BE NEW MEASURES TO CURB RUNAWAY INFLATION IN THE THIRD WORLD'S MOST INDEBTED NATION MR RESENDE A 64YEAROLD ENGINEER AND FORMER TRANSPORT MINISTER BECOMES PRESIDENT ITAMAR FRANCO'S THIRD FINANCE MINISTER IN HIS FIVE MONTHS IN OFFICE UNDERSCORING THE INSTABILITY OF BRAZIL'S ECONOMY AND THE PRICKLINESS OF MR FRANCO WHOSE PUBLIC CLASHES WITH MR HADDAD AND HIS PREDECESSOR GUSTAVO KRAUSE LED THEM TO RESIGN MR HADDAD'S RESIGNATION COMES AT A PARTICULARLY SENSITIVE TIME COINCIDING WITH THE ARRIVAL IN BRAZIL OF AN INTERNATIONAL MONETARY FUND TEAM TO REVIEW BRAZIL'S ACCOUNTS MR RESENDE'S NOMINATION TO ADMINISTER LATIN AMERICA'S LARGEST ECONOMY IS WIDELY VIEWED AS A SIGN THAT MR FRANCO HAS TIRED OF A GRADUAL APPROACH TO ATTACKING INFLATION CURRENTLY AT 28 A MONTH AND WANTS TO SEE STRONGER MEASURES NOTHING WAS HAPPENING ON INFLATION SAYS ED GAMES LEAD PORTFOLIO MANAGER OF THE BRAZIL FUND IT'S CRYSTAL CLEAR HE'S REACHED THE END OF HIS PATIENCE AND WANTS THE PROBLEM TO BE LICKED BUT WHILE SOME LIKE MR GAMES HOPE BRAZIL WILL FIGHT INFLATION WITH TOUGH MEASURES SUCH AS ATTACKING WIDESPREAD TAX EVASION AND THE GOVERNMENT'S UNRESTRAINED MONEY PRINTING MANY FEAR THE NEW MINISTER WILL BE TEMPTED TO SEEK A QUICK FIX WHILE MR RESENDE RULED OUT SHOCK MEASURES TO CUT INFLATION AND PROMISED CONTINUITY IN POLICIES BRAZIL'S BUSINESS COMMUNITY EXPECTS HIM TO BE LESS ORTHODOX THAN MR HADDAD REFLECTING MR FRANCO'S CLEAR HASTE TO SHOW RESULTS THIS CHANGE SUGGESTS THE POPULIST TENDENCY OF ITAMAR'S GOVERNMENT WILL BE ACCENTUATED SAYS CARLOS LANGONI A CONSULTANT AND FORMER CENTRAL BANK PRESIDENT THOUGH I DON'T THINK RESENDE WILL TRY MAGIC SOLUTIONS THERE COULD BE AN INCREASE IN THE UNORTHODOX FLAVOR OF ECONOMIC POLICY THROUGH MEASURES LIKE PRICE CONTROLS FIXING THE EXCHANGE RATE OR ADOPTING A DISCOURSE GEARED MORE TOWARD ECONOMIC GROWTH THAN STABILIZATION FINANCIAL MARKETS YESTERDAY REFLECTED THE UNCERTAINTY OVER THE COURSE OF THE BRAZILIAN ECONOMY THE SAO PAULO STOCK MARKET FELL BY 55 WHILE RIO DE JANEIRO'S DROPPED 41 THE DOLLAR AND GOLD ROSE MR HADDAD WHOSE INSISTENCE ON AVOIDING SHOCK MEASURES TO BRING DOWN INFLATION HAD EARNED HIM THE RESPECT OF THE FINANCIAL COMMUNITY RESIGNED LATE SUNDAY ALSO RESIGNING IS CENTRAL BANK PRESIDENT GUSTAVO LOYOLA BOTH MEN SAID THEY QUIT AFTER CLASHING WITH MR FRANCO OVER THE PRESIDENT'S APPOINTEES TO TOP POSTS AT THE CENTRAL BANK AND STATEOWNED BANCO DO BRASIL MR HADDAD SAID THE APPOINTMENTS WHICH ARE LIKELY TO BE MADE PUBLIC THIS WEEK WERE POLITICAL THE CLASH WAS JUST THE LATEST SQUABBLE BETWEEN THE TWO MEN ON SATURDAY MR FRANCO HAD PUBLICLY SERVED NOTICE TO MR HADDAD THAT HE HAD THREE MONTHS TO BRING INFLATION DOWN MR HADDAD HAD BEEN WORKING ON AN ECONOMIC PLAN THAT HE INTENDED TO UNVEIL LATER THIS MONTH BUT SAID IT WOULD CONTAIN NO ANTIMARKET MEASURES AND DEPENDED ON CONGRESSIONAL APPROVAL OF A SERIES OF STEPS INCLUDING TAX REFORM IT'S UNCLEAR WHAT WILL HAPPEN TO THE PACKAGE OF TAXRELATED MEASURES ALREADY BEING CONSIDERED BY CONGRESS NOW THAT ITS AUTHOR HAS RESIGNED A FRIEND OF MR FRANCO AND AN EXPERIENCED POLITICAN AND PUBLIC SERVANT MR RESENDE WHO WAS MOST RECENTLY CHAIRMAN OF THE STATEOWNED ELECTRIC UTILITY ELECTROBRAS IS VIEWED IN THE BUSINESS COMMUNITY AS A COMPETENT ADMINISTRATOR BUT MANY DOUBT HIS CREDENTIALS QUALIFY HIM TO HANDLE BRAZIL'S COMPLEX ECONOMY MOREOVER MANY SAY MR FRANCO'S OWN SHORT FUSE AND UNPREDICTABILITY HAVE BOOSTED INFLATION BY GENERATING FEARS IN THE BUSINESS COMMUNITY THAT LEAD TO PRICE RISES THE PROBLEM ISN'T THE MINISTER IT'S THE PRESIDENT SAYS IGOR CORNELSEN DIRECTOR OF CHARTERED WEST LB BANK IN SAO PAULO AND THAT WILL CONTINUE FOR THE NEXT 22 MONTHS UNTIL MR FRANCO'S TERM ENDS 9303020180 930302 LEISURE & ARTS ELVIS IS A NOSHOW BUT BEN FRANKLIN'S IN THE AIR BY ALECIA SWASY CINCINNATI A CRACKED CERAMIC BUST OF ELVIS SITS ON THE HEARTH AND A BEACH TOWEL ADORNED WITH THE KING'S FACE HANGS DOWN FROM THE MANTEL HOUND DOG AND JAILHOUSE ROCK BLARE FROM THE STEREO SIMMERING IN THE KITCHEN IS A SOUTHERN MEAL OF PORK CHOPS SMOKY MOUNTAIN GRAVY AND APPLE PIE SOME OF THE SINGER'S FAVORITES FROM THE GREASYSPOON COOKBOOK ARE YOU HUNGRY TONIGHT ABOUT 40 GUESTS MINGLE OVER CHARDONNAY AND COCKTAILS WAITING FOR THE GUEST OF HONOR TO APPEAR NEVER MIND THAT HE'S DEAD A PSYCHIC IS ON HAND TO SUMMON HIM FOR THE EVENING SOME HERE FIGURE THE KING OF ROCK AND ROLL IS HAUNTING THIS 153YEAROLD MANSION HOME TO RICHARD SAUNDERS INTERNATIONAL A MARKETING AND INVENTION FIRM IF SHE CAN'T CONNECT WITH HIM SAYS COMPANY FOUNDER DOUG HALL IT'S PROOF THAT HE'S STILL ALIVE THIS PSYCHIC SATURDAY NIGHT IS THE MONTHLY MEETING OF THE CINCINNATI CHAPTER OF THE JUNTO SOCIETY THAT GROUP FOUNDED 265 YEARS AGO BY BENJAMIN FRANKLIN HAS BEEN REVIVED HERE BY MR HALL AND TRACY DUCKWORTH A FOOD CONSULTANT WHILE FRANKLIN TACKLED ISSUES LIKE STARTING A FIRE BRIGADE OR A GARBAGECOLLECTION SERVICE THESE FOLKS SEE A MORE PRESSING NEED FINDING ELVIS MR HALL HAS ALSO ASKED THE PSYCHIC TO LOOK FOR FRANKLIN HIS HERO MR HALL FIGURES HE'S GOT SOME TIES TO THE INVENTOR THE TWO SHARE THE SAME BIRTHDAY JUST 253 YEARS APART HE BORROWED FRANKLIN'S PEN NAME FOR HIS BUSINESS AND SPENDS A SMALL FORTUNE TRYING TO PROVE THE HALLS AND FRANKLINS ARE RELATED THEY SORT OF LOOK ALIKE ESPECIALLY WHEN THE BALDING AND BESPECTACLED MR HALL WEARS COLONIALSTYLE SHIRTS WITH PUFFY SLEEVES MEANWHILE DAVID HOWE A COOWNER OF A SISTER COMPANY RICHARD SAUNDERS TECHNOLOGIES ADDS SOME AUTHENTICITY ON THE ELVIS FRONT MR HOWE WAS A SOUND ENGINEER ON ELVIS'S LAST TOUR TO HELP CONTACT THE KING HE WEARS A RED SATIN JACKET EMBLAZONED WITH THE ELVIS ENTOURAGE'S TCB AND LIGHTNINGBOLT LOGO SYMBOLIZING TAKING CARE OF BUSINESS IN A FLASH THE FEAST OF GREASE HE NOTES SHOULD HELP ENTICE ELVIS HE ALWAYS HAD A PLATTER OF FRIED PEANUTBUTTERANDBANANA SANDWICHES BACKSTAGE HE SAYS IF THE DRUGS DIDN'T KILL HIM HIS DIET WOULD HAVE MR HOWE OBVIOUSLY DID CONNECT WITH THE PELVIS IN LIFE BUT MR HALL FIGURES IT MAY TAKE SOME EXPERTS ON TALKING TO THE DEAD TO CATCH UP WITH THE SINGER IN DEATH ENTER CHAR A SUBURBAN DETROIT SUBSTITUTE TEACHER TURNED PSYCHIC WHO NOW EARNS 300 PER READING RATHER THAN 23 PER SCHOOL DAY THIS EVENING FETCHES 1500 A MODEST SUM CONSIDERING HER EXTRAORDINARY ASSIGNMENT NOT TO MENTION AN UNEXPECTED EXORCISM BUT MORE ON THAT LATER THIS ALL SOUNDS HOKEY ADMITS CHAR WHO LIKE CHER AND MADONNA HAS DROPPED HER LAST NAME BUT IT'S POSSIBLE THEY'RE AROUND SHE CLAIMS THAT HER KNOWLEDGE COMES FROM HER SPIRITUAL GUIDE WHITE FEATHER HER PSYCHIC SKILLS HELP HER NAME DECEASED RELATIVES WHO HOVER ABOUT THE LIVING AND SERVE AS SPIRITUAL GUARDIANS SOMETIMES SHE HELPS POLICE DEPARTMENTS LOCATE MISSING PERSONS MOST DAYS SHE ADVISES CLIENTS INCLUDING HOLLYWOOD STARS AND US SENATORS SHE WON'T OFFER NAMES I'D LOVE TO READ FOR BILL AND HILLARY WRITE THAT DOWN SHE SAYS TONIGHT SHE WARMS UP WITH A FEW QUICK READINGS AS GUESTS SLURP DOWN BLUE HAWAIIANS A COCKTAIL NAMED AFTER ELVIS'S GREATEST FILM BLUE HAWAII AND MADE WITH BLUEBERRY JELLO LACED WITH VODKA AND MUNCH ON PEANUTBUTTERANDBANANA SANDWICHES SHE OPENS WITH A PRAYER TO KEEP OUT THE NASTY SPIRITS THEN VOLUNTEERS STEP FORWARD FOR READINGS DEWEY HAWTHORNE IS EAGER AS SHE BEGINS A SORT OF PSYCHIC WHEEL OF FORTUNE TO NAME HIS SPIRITS IS THERE A J HOW ABOUT A D SHE ASKS SHE DESCRIBES JULIE WHO HAS DIED AND JOINED MR HAWTHORNE'S FATHER WHO WAS ALSO NAMED DEWEY AFTERWARD MR HAWTHORNE CONFIRMS THAT JULIE WAS HIS NIECE WHO DIED A MONTH AGO HER ASHES WERE BURIED ALONGSIDE HIS FATHER'S TOMBSTONE THE GROUP GROWS RESTLESS FOR ELVIS MORE FOOD SHOULD HELP BRING HIM OUT OF HIDING SO THEY DIG INTO THE SMASHEDPOTATO PIE AND WHITE GRAVY WHICH RESEMBLES A FRESH POT OF PAPIERMACHE IT CAME RIGHT OUT OF THE ELVIS COOKBOOK MEMBERS OF THE JUNTO SOCIETY WERE ASSIGNED RECIPES FROM THAT CULINARY BIBLE BUT NO ONE TACKLED THE ROYAL WEDDING CAKE WHICH ALLOWS FAITHFUL FOLLOWERS TO RECREATE THE SIXTIERED CAKE THAT ELVIS AND PRISCILLA ATE AFTER THEIR 1967 LAS VEGAS WEDDING THE MIX REQUIRES 20 POUNDS OF CRISCO 28 POUNDS OF SUGAR AND THREE DAYS OF WORK YIELD 500 SERVINGS AFTER THE MEAL MR HALL PRESSES FOR DETAILS ON FRANKLIN HOW DOES BEN LOOK THESE DAYS THAT'S UNCLEAR BECAUSE SPIRITS CAN COME BACK AT ANY AGE AND WITH ANY APPEARANCE THEY CHOOSE SO WOULD ELVIS CHOOSE TO REAPPEAR IN PERSON OR SAY ON A STAMP AS HIS YOUNGER THINNER SELF DEFINITELY CHAR SAYS OCCUPATIONS AMONG THE DEAD CAN ALSO VARY THERE'S A SPIRITED DEBATE ABOUT WHAT ELVIS IS DOING RANGING FROM EATING JELLY DOUGHNUTS IN KALAMAZOO TO HANGING OUT AT GRACELAND HE MAY BE DOING WORK IN THE SPIRIT WORLD HELPING LITTLE MUSICIANS CHAR SAYS BUT THE ENQUIRING MINDS IN CINCINNATI WANT PROOF FORMER ELVIS HAND MR HOWE STEPS FORWARD TO HELP CHAR FIND THE KING WAS THERE A BOB OR A ROBERT AROUND HIM SHE ASKS NOT THAT I KNEW OF HE REPLIES SHE CLENCHES HER HAND INTO A FIST FRUSTRATED BY THE LACK OF CONTACT THE GROUP WILL BE LONESOME TONIGHT FRANKLIN I'M FEELING SHE SAYS MAYBE MORE PEOPLE ARE CALLING ELVIS TO THEIR HOMES CHAR ASSURES THE COOKS THAT REGARDLESS OF HIS LOCATION THE MEAL WASN'T A WASTE SPIRITS CAN EAT VICARIOUSLY THROUGH OTHERS THE FRANKLIN VIBES ARE STRONG SHE TRIES AGAIN TO CONTACT THE INVENTOR THIS TIME CHAR DECIDES IT'S BEST TO TURN OFF THE LIGHTS OK BEN FRANKLIN GIVE SOMEBODY A MESSAGE TO LET US KNOW YOU'RE AROUND CHAR ASKS MR HALL HAS A SHOCKING FEELING IN HIS LEGS COULD BE TOO MANY BLUE HAWAIIANS BUT HE IS UNDAUNTED PEOPLE NEED TO FREE THEMSELVES HE SAYS OTHERS FIGURE THE MESSAGE IS FROM THE THIRD FLOOR THE SUSPECTED HOME OF SOME RESTLESS SPIRITS THEY NEED TO GO SAYS MS DUCKWORTH CHAR DECIDES SHE WILL TRY TO EXORCISE THE HOUSE WHICH WAS BUILT IN 1840 BY A HOG MERCHANT NAMED WILLIAM EDWARDS IS IT ELVIS UPSTAIRS ASKS ONE OPTIMISTIC FAN CHAR IS DOUBTFUL ABOUT TWO DOZEN PEOPLE CROWD INTO A TINY OFFICE ON THE TOP FLOOR CHAR ASKS WHITE FEATHER TO TAKE THE SPIRITS TO THE WHITE LIGHT TO THE AFTERLIFE ONE WOMAN IN THE GROUP IS ALL SHOOK UP SHE CRIES ABOUT THE SPIRIT A YOUNG GIRL WHO DOESN'T WANT TO LEAVE THE PSYCHIC'S VOICE DEEPENS TO A BARITONE THE VOICE OF WHITE FEATHER TO OFFER A BRIEF MESSAGE ABOUT SPIRITS LEAVING WHITE CLOUD WAS HERE GUSHES ONE ENTHUSIASTIC WOMAN CONFUSING A BRAND OF BATHROOM TISSUE WITH THE SPIRITUAL GUIDE CHAR SEEMS SURPRISED THAT WHITE FEATHER HAS OFFERED A COMMENT ESPECIALLY IN FRONT OF THE WALL STREET JOURNAL THE GROUP MOVES TO THE SECOND FLOOR WHERE CHAR MEETS SOME BAD SPIRITS WHO NAGGED PREVIOUS TENANTS SHE CORRECTLY IDENTIFIES THE FORMER RESIDENTS AND THEIR PROBLEMS I DIDN'T BELIEVE THE OTHER STUFF SAYS DOUG EVANS WHO OWNS A NEIGHBORING LANDSCAPING BUSINESS BUT THAT'S FREAKY THE GROUP WALKS DOWN THE PINE STAIRCASE AROUND MIDNIGHT MAKING PLANS TO GATHER AGAIN FOR NEXT MONTH'S MEETING MR HALL REASSURES SUSPICIOUS MINDS THAT THIS WON'T BE A REGULAR EVENT NEXT TIME WE'RE SQUARE DANCING MS SWASY IS A JOURNAL REPORTER ON LEAVE TO WRITE A BOOK ABOUT PROCTER & GAMBLE CO 9303020178 930302 INTERNATIONAL WORLD WIRE BY RICHARD L HOLMAN COMPANIES THAT BOUGHT EASTERN GERMAN STATEOWNED ENTERPRISES ARE INCREASINGLY REEVALUATING THEIR AGREEMENTS AS THE GERMAN ECONOMY DETERIORATES THE TREUHANDANSTALT WHICH IS PRIVATIZING AND RESTRUCTURING EASTERN FIRMS SAID AS MANY AS 10 OF BUYERS ARE TRYING TO RENEGOTIATE THEIR CONTRACTS THE AGENCY SET UP IN 1990 SOLD OFF 11043 FIRMS MOSTLY TO WESTERN GERMANS BY THE END OF LAST YEAR WHEN IT STILL HELD 2575 COMPANIES THE BUYERS PROMISED TO INVEST 1695 BILLION MARKS 1036 BILLION AND GUARANTEED 14 MILLION JOBS BUT MANY OF THOSE INVESTMENTS ARE TAKING LONGER TO COMPLETE THAN EXPECTED BECAUSE OF ADMINISTRATIVE AND PROPERTY PROBLEMS WHILE SHRINKING MARKETS SLASHED THE REGION'S INDUSTRIAL OUTPUT TO 20 OF THE 1990 LEVEL AND THE SOUR OUTLOOK IS PROMPTING SOME BUYERS TO TRY TO RENEGE ON THEIR PROMISES TO THE TREUHAND THOUGH IT IS WILLING TO MAKE ADJUSTMENTS THE IFO EONOMIC RESEARCH INSTITUTE EXPECTS FIRMS IN WESTERN GERMANY IN LINE WITH THAT REGION'S DOWNTURN WILL REDUCE THE 175 BILLION MARKS THEY EARMARKED FOR EASTERN ENTERPRISES THIS YEAR OUTLAYS LAST YEAR WERE 60 OF THE PLANNED TOTAL THE EUROPEAN COMMUNITY COMMISSION IS INVESTIGATING WHETHER TO EXEMPT AGREEMENTS ON ENGLISH CHANNEL TUNNEL FREIGHT SERVICES FROM EC COMPETITION RULES THE ACCORDS WHICH INVOLVE CREATION OF ALLIED CONTINENTAL INTERMODAL SERVICES LTD BY BRITISH RAILWAYS SOCIETE NATIONALE DE CHEMINS DE FER FRANCAIS AND INTERCONTAINER A 24COMPANY FREIGHT CONSORTIUM MAY BREACH THE EC BAN ON ANTICOMPETITIVE AGREEMENTS BETWEEN COMPANIES THE EC COULD GRANT AN EXEMPTION IF THE ACCORDS WOULD LEAD TO MORE EFFICIENT TRANSPORTATION SERVICES ALLIED CONTINENTAL WOULD SELL FREIGHT SERVICES TO FIRMS USING THE TUNNEL WHICH IS UNDER CONSTRUCTION JAPANESE WORKERS' OVERTIME DECREASED IN JANUARY THE 14TH CONSECUTIVE MONTH OF DECLINES FROM YEAREARLIER LEVELS AMID THE COUNTRY'S ECONOMIC SLUMP AT COMPANIES WITH MORE THAN 30 EMPLOYEES OVERTIME FELL 15 TO AN AVERAGE OF 108 HOURS FROM JANUARY 1992 THE SHARPEST DROPS WERE IN MANUFACTURING 22 REAL ESTATE 19 WHOLESALE AND RETAIL STORES 16 AND SERVICE BUSINESSES 11 INDIA'S NEWLY FREED RUPEE MAY DEFY EXPECTATIONS AND BECOME STRONGER AGAINST OTHER CURRENCIES FINANCE MINISTER MANMOHAN SINGH SAID NOTING THIS AND OTHER BUDGET MOVES COULD WOO MORE INVESTORS BOOST EXPORTS AND CUT DOMESTIC PRICES INDIA ABANDONED A TWOTIERED EXCHANGERATE POLICY FOR A SINGLE RATE FIXED BY THE MARKET BUDGET MEASURES WOULD END THE GOVERNMENT MONOPOLY ON CURRENCY TRADING SLASH CUSTOMS DUTIES AND ALLOW BANKS TO SELL STOCK TO THE PUBLIC INDONESIA INTRODUCED A CURRENCY NOTE OF 50000 RUPIAHS 2430 THE LARGEST DENOMINATION ON BILLS FOR THE PAST YEAR HAD BEEN 20000 RUPIAHS PREVIOUSLY IT WAS 10000 RUPIAHS CONSUMER GROUPS SAID THE NEW NOTE COULD FUEL INFLATION THE NOTE WHICH BEARS PRESIDENT SUHARTO'S LIKENESS WITH THE TITLE FATHER OF DEVELOPMENT WAS ISSUED IN CONJUNCTION WITH THE OPENING OF THE PEOPLE'S CONSULTATIVE ASSEMBLY WHERE MR SUHARTO WILL BE ELECTED FOR A SIXTH FIVEYEAR TERM AFTER TWO LEAN YEARS BRITAIN EXPECTS A TOURISM RECOVERY THIS YEAR BECAUSE THE POUND HAS PLUNGED AS MUCH AS 20 AGAINST OTHER MAJOR CURRENCIES SINCE SEPTEMBER GIVING VISITORS MORE BUYING POWER THE SECTOR WHICH PUMPS 36 BILLION A YEAR INTO BRITAIN'S ECONOMY STAGGERED FROM A 7 DROP IN VISITORS TO 167 MILLION IN 1991 FROM A YEAR EARLIER 1992 DATA AREN'T AVAILABLE LAST YEAR HOTEL ROOM RATES WERE FROZEN AT HEAVILY DISCOUNTED 1991 LEVELS NOW A BIGGER BARGAIN BECAUSE OF THE CURRENCY EFFECT WHICH IS LEADING THE LEISURE SECTOR FROM HOTELS AND RESTAURANTS TO MAJOR TOURIST ATTRACTIONS TO GEAR UP FOR A VISITOR SURGE A SECOND DANISH REJECTION OF THE EUROPEAN COMMUNITY INTEGRATION TREATY COULD RESULT IN AN ADDITIONAL 150000 PEOPLE UNEMPLOYED AND FORCE DENMARK OUT OF THE EC ACCORDING TO A GOVERNMENT REPORT CITED IN A NEWSPAPER THE SOCIAL DEMOCRATICLED COALITION WHICH TOOK OFFICE IN JANUARY HAD BEEN MULLING POSSIBLE CHANGES IN THE REPORT DRAWN UP BY THE PREVIOUS CONSERVATIVE GOVERNMENT DANES REJECTED THE EC TREATY ON POLITICAL MONETARY AND ECONOMIC UNION IN A JUNE REFERENDUM BUT IN DECEMBER EC LEADERS GRANTED DENMARK EXEMPTIONS IN HOPES OF WINNING APPROVAL IN A SECOND REFERENDUM NOW SCHEDULED FOR MAY 18 SOME OFFICIALS FEARED THE REPORT WOULD PROMPT ACCUSATIONS OF SCAREMONGERING AND A BACKLASH AT THE POLLS WHILE OTHERS FAVORED DESCRIBING POSSIBLE CONSEQUENCES FOR EXAMPLE THE ESTIMATE OF INCREASED JOBLESSNESS MAY TOUCH A NERVE AS UNEMPLOYMENT TOTALS 325600 OR 117 ECONOMIC CONSEQUENCES OF A NO VOTE COULD BE EXTENSIVE THE FINANCE MINISTRY SAID CITING AGREEMENTS ON AGRICULTURE AND FISHERIES THAT MAY BE IMPERILED RUSSIAN COAL MINERS STAGED A ONEDAY WARNING STRIKE AT MORE THAN FOUR DOZEN MINES IN SIBERIA'S KUZNETSK REGION AND THE FAR NORTH DEMANDING BACK PAY AND WAGES TIED TO INFLATION WHICH IS THREATENING TO SPIN OUT OF CONTROL FRENCH BUSINESS FAILURES LAST YEAR ROSE 91 TO A SEASONALLY ADJUSTED 57796 FROM A YEAR EARLIER 9303020177 930302 BOMB EXPERTS IN NEW YORK HAVE VIDEOTAPE TRADE CENTER INVESTIGATORS SEEK TO IDENTIFY CARS IN UNDERGROUND GARAGE BY WILLIAM M CARLEY AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL FEDERAL AND NEW YORK CITY OFFICIALS INVESTIGATING THE WORLD TRADE CENTER BOMBING DISCLOSED THAT THEY HAVE A VIDEOTAPE OF SOME CARS ENTERING AND LEAVING THE CENTER THE BOMB WHICH EXPLODED IN A PARKING GARAGE UNDER THE TRADE CENTER LAST FRIDAY IS BELIEVED TO HAVE BEEN BROUGHT INTO THE CENTER IN A CAR OR VAN INVESTIGATORS ARE NOW SCANNING THE VIDEOTAPE LOOKING FOR SUSPICIOUS VEHICLES MEANWHILE FEDERAL AGENTS SAID THEY BELIEVE THE BOMB LIKELY WAS MADE OF AMMONIUM NITRATE A FERTILIZER THAT'S ALSO USED AS A COMMERCIAL EXPLOSIVE JAMES FOX HEAD OF THE FBI'S NEW YORK OFFICE SAID THE EXPLOSIVE DEVICE WAS A LARGE HEAVY BOMB POSSIBLY ONE THAT WOULD TEST THE SPRINGS OF ANY CAR OR VAN MR FOX SPEAKING AT A NEWS BRIEFING AT NEW YORK CITY POLICE HEADQUARTERS INDICATED INVESTIGATORS ARE EXAMINING THE VIDEO FOR ANY VEHICLES WEIGHED DOWN BY A HEAVY LOAD CARS ENTERING THE PUBLIC PARKING GARAGE AT THE WORLD TRADE CENTER ARE ALSO RECORDED BY LICENSE PLATE NUMBER INVESTIGATORS ARE NOW TRACKING DOWN AUTOS THAT ENTERED THE GARAGE PRIOR TO THE BOMBING WHETHER THE VIDEO MIGHT CONTAIN PICTURES OF A BOMBCARRYING VEHICLE ISN'T CERTAIN THE TIMESPAN COVERED BY THE VIDEO ISN'T KNOWN PUBLICLY ALSO THERE ARE THREE PUBLIC ENTRANCES TO THE GARAGE WHILE THE VIDEO APPARENTLY COVERS ONLY ONE ENTRANCE MR FOX ALSO SAID THAT THE IDEA OF A LONE ZEALOT ARRANGING THE BOMBING HAS BEEN PLACED ON THE BACK BURNER HE SAID THAT THE SHEER SIZE AND WEIGHT OF THE DEVICE INDICATED THAT MORE THAN ONE PERSON IS PROBABLY INVOLVED THE FBI OFFICIAL DECLINED TO CONFIRM THAT A TERRORIST GROUP WAS INVOLVED THOUGH HE DID RAISE THE POSSIBILITY THAT A DRUG CARTEL GROUP SUCH AS THOSE IN COLOMBIA MIGHT BE RESPONSIBLE BUT HE PROVIDED NO EVIDENCE OF ANY LINK TO DRUG GROUPS WHICH ANALYSTS SAY HAVE NO RECORD OF BOMBINGS IN THE US ASKED WHY NO GROUP HAD MADE ANY CREDIBLE CLAIM TO RESPONSIBILITY FOR THE BOMBING MR FOX REPLIED THAT AFTER WE BOMBED COL GADHAFI TERRORISTS LEARNED THAT YOU DON'T WANT TO TAKE CREDIT AND YOU DON'T WANT TO GET CAUGHT STRUCTURAL PROBLEMS IN THE WORLD TRADE CENTER ARE STILL HAMPERING INVESTIGATORS YESTERDAY A CONCRETE BLOCK WALL COLLAPSED NEAR THE BOMB LOCATION SENDING INVESTIGATORS SCURRYING BUT INJURING NONE DESPITE SUCH PROBLEMS ANOTHER FBI OFFICIAL BOMB EXPERT DAVID WILLIAMS PROVIDED SOME DETAILS INVESTIGATORS HAVE BEEN ABLE TO GLEAN SO FAR IN AN INTERVIEW HE ESTIMATED FRIDAY'S BLAST WAS COMPARABLE TO THE ONE THAT HIT THE AMERICAN EMBASSY IN BEIRUT IN 1984 AND KILLED 12 PEOPLE THIS IS THE LARGEST IMPROVISED EXPLOSIVE DEVICE THAT'S BEEN IN THE US SINCE WE STARTED DOING FORENSIC EXPLOSIVE INVESTIGATIONS IN 1925 HE SAID WHILE IT ISN'T CERTAIN WHAT KIND OF DEVICE WAS USED A FEDERAL OFFICIAL SAID THE TYPE OF DAMAGE IN NEW YORK INDICATES THE EXPLOSION WAS CAUSED BY AN AMMONIUM NITRATEBASED DEVICE IN A WATER GEL OR A SLURRY SUCH MATERIAL COULD HAVE BEEN STOLEN FROM A CONSTRUCTION SITE EVIDENCE AT THIS EARLY POINT DOESN'T INDICATE TNT OR DYNAMITE NOR DOES IT INDICATE A PLASTIC EXPLOSIVE OF THE TYPE THAT DESTROYED PAN AM 103 OVER SCOTLAND THE OFFICIAL SAID THOSE KINDS OF EXPLOSIVES HAVE A HIGHER VELOCITY OF DETONATION AND ARE MORE LIKELY TO SHATTER THINGS AROUND THE EXPLOSION THE OFFICIAL EXPLAINED LOWERVELOCITY EXPLOSIVES DO MORE PUSHING AND HEAVING HE ADDED MR WILLIAMS WHO INSPECTED THE BOMB SCENE SAID HE SAW A 24INCH STEEL IBEAM 20 FEET LONG AND WEIGHING ABOUT SEVEN TONS IN A CONCRETE WALL WITHIN 50 FEET OF THE BLAST THE BEAM HAD BEEN THROWN ABOUT 100 FEET AN EXPLOSIVE SUCH AS TNT COULD HAVE BROKEN THE BEAM LIKE A PENCIL RATHER THAN THROWING IT MR WILLIAMS SAID TO GET MORE CLUES SUCH AS FRAGMENTS OF THE DEVICES TO TIME AND DETONATE THE BOMB WE HAVE TO CLEAN OUT THAT ENTIRE AREA SO THAT YOU CAN EAT OFF THE FLOOR MR WILLIAMS ADDED EVERY GRAIN OF SAND AND EVERY PIECE OF CONCRETE WILL BE SIFTED THROUGH A WINDOW SCREEN TO LOOK FOR ANY OF THE FRAGMENTS THAT WE THINK ARE VALUABLE 9303020176 930302 JAPANESE VCR EXPORTS DROP TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS FELL 23 IN DECEMBER FROM THE YEAREARLIER MONTH TO 12 MILLION UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID FOR 1992 VCR EXPORTS SLIPPED 19 FROM THE YEAR BEFORE TO 177 MILLION UNITS SHIPMENTS TO THE EUROPEAN COMMUNITY AND THE US DROPPED DURING BOTH THE MONTH AND YEAR WHILE THOSE TO DEVELOPING ASIAN COUNTRIES POSTED STRONG GAINS 9303020175 930302 ALBERTA REGISTERS DEBT WASHINGTON THE PROVINCE OF ALBERTA FILED FOR THE SHELF OFFERING OF 800 MILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE PROVINCE SAID THE SECURITIES JOIN 200 MILLION OF PREVIOUSLY REGISTERED DEBT TO BRING THE TOTAL SHELF TO 1 BILLION THE SECURITIES THE FILING SAID MAY BE BONDS DEBENTURES OR OTHER DEBT PROCEEDS ARE INTENDED FOR GENERAL PROVINCIAL PURPOSES NO UNDERWRITERS WERE NAMED IN THE FILING 9303020174 930302 VARITY EXTENDS STOCK PLAN BUFFALO NY VARITY CORP AN AUTO PARTS AND TRACTOR CONCERN SAID IT EXTENDED THROUGH MARCH 26 A PROGRAM ALLOWING HOLDERS OF FEWER THAN 100 COMMON OR PREFERRED SHARES TO SELL THEIR STOCK BACK TO THE COMPANY FREE OF COMMISSIONS 9303020173 930302 INTERNATIONAL CANADIAN NATIONAL TO TAKE CHARGE OF 720 MILLION TO DROP 11000 JOBS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL CANADIAN NATIONAL RAILWAYS SAID IT WILL TAKE A CHARGE OF 900 MILLION CANADIAN DOLLARS US720 MILLION TO ELIMINATE 11000 JOBS IN CANADA AND THE US OVER THE NEXT THREE YEARS SIGNALING A MAJOR OVERHAUL OF CANADA'S LOSSPLAGUED FREIGHTRAIL INDUSTRY BESIDES SLASHING ITS CANADIAN WORK FORCE OF 32400 BY 30 AND ITS US EMPLOYMENT BASE OF 3300 BY ONETHIRD GOVERNMENTOWNED CANADIAN NATIONAL SAID IT INTENDS TO PARE ITS RAIL NETWORK EAST OF WINNIPEG MANITOBA SPECIFIC PROPOSALS TO SELL OR ABANDON LINES HINGE ON ONGOING DISCUSSIONS WITH CANADIAN PACIFIC LTD WHICH OPERATES THE COUNTRY'S OTHER MAJOR RAIL SYSTEM CANADIAN NATIONAL AND CANADIAN PACIFIC COULD NEGOTIATE JOINT TRACK USAGE IN AREAS WHERE THEIR LINES PARALLEL EACH OTHER PERHAPS EVEN MERGING THEIR RAILROADS IN ONE OR MORE REGIONS CANADIAN NATIONAL SAID IT ALSO MAY SEEK TO SELL LOWVOLUME BUT VIABLE PARTS OF ITS NETWORK TO SHORTLINE OPERATORS AND TO ABANDON LITTLEUSED LINES IN AN INTERVIEW PRIOR TO YESTERDAY'S ANNOUNCEMENT PAUL TELLIER CANADIAN NATIONAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID CANADIAN NATIONAL MIGHT PUT UP FOR SALE ITS CENTRAL VERMONT LINE WHICH RUNS FROM THE QUEBEC BORDER TO NEW LONDON CONN THE UNIT WHICH GENERATES ABOUT C20 MILLION IN ANNUAL REVENUE HAS BEEN OPERATING NEAR THE BREAKEVEN LEVEL MR TELLIER SAID THE PORTION OF CANADIAN NATIONAL'S GRAND TRUNK WESTERN RAILWAY THAT LINKS SOUTHERN ONTARIO TO CHICAGO REMAINS VERY MUCH PART OF OUR CORE STRATEGY MR TELLIER SAID BUT WE'RE EXAMINING THE VARIOUS BITS AND PIECES OF THE MONEYLOSING GRAND TRUNK SYSTEM WHICH INCLUDES A BRANCH THROUGH DETROIT TO CINCINNATI TO SEE WHETHER EVERYTHING IS PART OF OUR CORE STRATEGY CANADIAN NATIONAL'S JOB CUTS SET THE STAGE FOR A DRASTIC CHANGE IN CANADA'S STORIED RAIL INDUSTRY WHICH HAS FAILED TO MATCH THE IMPROVEMENTS IN EFFICIENCY ACHIEVED BY DEREGULATED US RAIL COMPANIES IN RECENT YEARS CANADIAN NATIONAL HAS THE LIGHTEST DENSITY MEASURED IN FREIGHT TONNAGE PER MILE OF TRACK OF ANY MAJOR NORTH AMERICAN RAILWAY WE HAVE A GREAT DEAL TO LEARN FROM SOME US RAILROADS SAID THE 53YEAROLD MR TELLIER A FORMER SENIOR CIVIL SERVANT WHO JOINED CANADIAN NATIONAL LAST OCTOBER FOR EXAMPLE CANADIAN NATIONAL WILL TRY TO RECOUP SOME MARKET SHARE FROM TRUCKING COMPANIES BY PURSUING INTERMODAL ALLIANCES WHICH INVOLVE COOPERATING WITH TRUCKERS TO HAUL FREIGHT CONTAINERS BY HIGHWAY AND RAIL CANADIAN NATIONAL HAS BUDGETED C2 BILLION TO STREAMLINE AND IMPROVE SERVICE OVER THE NEXT FIVE YEARS AND MR TELLIER INDICATED HE WILL SEEK GREATER FLEXIBILITY FROM THE COMPANY'S LABOR UNIONS IN CERTAIN OPERATIONS BRANDISHING CHARTS TO ILLUSTRATE THE URGENCY OF THE SITUATION MR TELLIER PREDICTED THAT FAILURE TO CUT OPERATING COSTS WOULD CAUSE STEADILY WIDENING LOSSES AND A DOUBLING OF CANADIAN NATIONAL'S C2 BILLION IN DEBT OVER THE NEXT FIVE YEARS SALARIES AND BENEFITS ACCOUNT FOR ABOUT 52 OF THE COMPANY'S OPERATING EXPENSES WITH THE RESTRUCTURING CHARGE CANADIAN NATIONAL WILL RECORD A LOSS OF MORE THAN C1 BILLION FOR 1992 REFLECTING THE ANTICIPATED COSTS OF ENTICING EMPLOYEES TO GIVE UP JOBSECURITY RIGHTS BUT AFTER A LOSS OF ABOUT C70 MILLION THIS YEAR CANADIAN NATIONAL SHOULD BREAK EVEN IN 1994 MR TELLIER SAID A SUCCESSFUL RESTRUCTURING COULD MAKE IT POSSIBLE FOR THE CANADIAN GOVERNMENT TO CONSIDER PRIVATIZING CANADIAN NATIONAL WITHIN FIVE YEARS MR TELLIER SAID ONCE WE HAVE TURNED AROUND AND ARE BACK IN SHAPE I DON'T THINK THAT ONE HAS TO SHOW THREE OR FOUR YEARS OF IMPRESSIVE PROFIT BEFORE THERE CAN BE PRIVATIZATION HE SAID MR TELLIER SAID CANADA'S TIMECONSUMING REGULATORY PROCESS FOR SHEDDING TRACKS SHOULDN'T BE AN OBSTACLE TO CANADIAN NATIONAL'S RESTRUCTURING BECAUSE ONLY THE THIRD YEAR OF THE STAFFREDUCTION PROGRAM IS PREDICATED ON TRIMMING THE RAIL NETWORK 9303020172 930302 MICRON TECHNOLOGY SETTLES SUIT BOISE IDAHO MICRON TECHNOLOGY INC SAID IT AGREED TO PAY 6 MILLION TO SETTLE A SHAREHOLDERS' CLASSACTION LAWSUIT AGAINST IT AND CERTAIN OFFICERS THE CHIP MAKER SAID THE SETTLEMENT WHICH ISN'T AN ADMISSION OF LIABILITY OR WRONGDOING WILL RESULT IN A PRETAX CHARGE OF 3 MILLION IN ITS FISCAL SECOND QUARTER ENDING MARCH 4 THE 1989 SUIT ALLEGED THAT MICRON VIOLATED FEDERAL REGULATIONS IN CERTAIN STATEMENTS MADE TO THE SECURITIES AND EXCHANGE COMMISSION AND THAT CERTAIN OFFICERS AND DIRECTORS ENGAGED IN ILLEGAL INSIDER TRADING OF MICRON STOCK 9303020171 930302 INTERNATIONAL TELEFONICA EARNINGS DECLINE MADRID SPAIN'S STATERUN TELECOMMUNICATIONS MONOPOLY TELEFONICA DE ESPANA SA SAID CONSOLIDATED NET INCOME DROPPED 24 IN 1992 TO 7950 BILLION PESETAS 676 MILLION FROM 10425 BILLION PESETAS IN 1991 THE COMPANY DIDN'T COMMENT ON THE FALL IN CONSOLIDATED PROFIT BUT REPORTED THAT THE GROUP'S NET EXTRAORDINARY ITEMS SWUNG TO AN EXPENDITURE OF 3413 BILLION PESETAS IN 1992 FROM AN INCOME OF 1111 BILLION PESETAS IN 1991 REVENUE ROSE 16 TO 122 TRILLION PESETAS 9303020170 930302 LOUISIANAPACIFIC CORP PORTLAND ORE LOUISIANAPACIFIC CORP SAID ITS BOARD RECOMMENDED AN INCREASE IN THE NUMBER OF SHARES IT IS AUTHORIZED TO HAVE OUTSTANDING TO 200 MILLION FROM 75 MILLION THE BUILDINGPRODUCTS COMPANY SAID THAT IF STOCKHOLDERS APPROVE THE INCREASE AT A MEETING SCHEDULED FOR MAY 4 IT WILL CONSIDER A STOCK SPLIT 9303020169 930302 WHO'S NEWS BURSONMARSTELLER BURSONMARSTELLER WASHINGTON KIRBY JONES WAS APPOINTED SENIOR VICE PRESIDENT AND MANAGING DIRECTOR OF THIS PUBLIC RELATIONS FIRM'S PRIVATIZATION PRACTICE MR JONES HAD PREVIOUSLY WORKED FOR THE WORLD BANK'S INTERNATIONAL FINANCE CORP AND IS A LONGTIME DEMOCRATIC PARTY ACTIVIST 9303020168 930302 BALTIMORE GAS TO REDEEM BONDS BALTIMORE BALTIMORE GAS & ELECTRIC CO SAID IT WOULD REDEEM ON APRIL 1 THE OUTSTANDING 98 MILLION OF ITS 9125 FIRST REFUNDING MORTGAGE BONDS DUE MARCH 1 2018 BALTIMORE GAS SAID IT WOULD PAY BONDHOLDERS 10577 OF PRINCIPAL PLUS ACCRUED INTEREST FROM MARCH 1 TO APRIL 1 9303020167 930302 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 MOTOROLA INC 200 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2008 WAS PRICED AS 6 1/2 AT 9934 TO YIELD 657 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 625 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO MCI COMMUNICATIONS CORP 240 MILLION ISSUE OF DEBENTURES DUE MARCH 15 2024 WAS PRICED AS 7 3/4 AT 9958 TO YIELD 7786 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEBRASKA PUBLIC POWER DISTRICT 253 MILLION BONDS WERE REPRICED BY A FIRST BOSTON CORP GROUP AT THE REPRICING A FEW YIELDS WERE LOWERED 50 BASIS POINTS DUE TO HEAVY DEMAND BUT SOME OTHER YIELDS WERE RAISED 50 BASIS POINTS TO ATTRACT BUYERS THE OFFERING INCLUDES 119 MILLION 1993 SERIES A ELECTRIC SYSTEM BONDS WHICH ARE NOW PRICED TO YIELD FROM 280 IN 1994 TO 555 IN 2010 INITIALLY YIELDS RANGED FROM 285 IN 1994 TO 555 IN 2010 THERE ARE ALSO 134 MILLION 1993 SERIES B POWER SUPPLY SYSTEM BONDS WHICH ARE NOW PRICED TO YIELD FROM 280 IN 1994 TO 565 IN 2013 THE INITIAL SCALE OF YIELDS WAS 285 IN 1994 TO 565 IN 2013 BOTH SERIES OF BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA 4846 MILLION REFUNDING BONDS HAVE BEEN REPRICED BY A FIRST BOSTON GROUP AT THE REPRICING A NEW 2009 MATURITY WAS ADDED THOSE BONDS ARE 550 PRICED TO YIELD 551 THE 2013 BONDS WHICH WERE 550 PRICED TO YIELD 565 HAVE BEEN REPLACED BY 2012 SECURITIES WHICH ARE 550 PRICED TO YIELD 562 OVERALL YIELDS NOW RANGE FROM 285 IN 1994 TO 570 IN 2020 THE INITIAL SCALE OF YIELDS WAS 285 IN 1994 TO 575 IN 2020 MOODY'S IS EXPECTED TO RATE THE ISSUE SINGLEA1 AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 918 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES G007 IS BACKED BY 8 1/2 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 275 YEARS THE ISSUE SETTLES APRIL 30 ELECTRICITE DE FRANCE FRENCH AGENCY ONE BILLION FRENCH FRANCS OF FUNGIBLE ZERO COUPON EUROBONDS DUE DEC 16 2002 ISSUED AND INITIALLY REOFFERED AT 4950 TO GIVE A YIELD PICKUP OF FIVE BASIS POINTS OVER COMPARABLE FRENCH TREASURY VIA PARIBAS CAPITAL MARKETS BONDS FUNGIBLE WITH THREE BILLION FRANCS OF SIMILAR BONDS ALREADY OUTSTANDING FEES 020 ABN AMRO BANK NV THE NETHERLANDS ONE BILLION GUILDERS OF 6 5/8 EUROBONDS DUE APRIL 5 2000 PRICED AT 10075 VIA ABN AMRO BANK NV REOFFERED AT PAR A MARGIN OF 175 BASIS POINTS ABOVE COMPARABLE DUTCH GOVERNMENT NOTE GUARANTOR ABN AMRO BANK FEES 1 COUNCIL OF EUROPE 100 MILLION EUROPEAN CURRENCY UNITS OF 9 EUROBONDS DUE NOV 14 2001 PRICED AND REOFFERED AT 10630 VIA GOLDMAN SACHS INTERNATIONAL BONDS YIELD 795 AT REOFFER OFFERING REOPENS ONE BILLION ECU ISSUE FIRST OFFERED IN NOVEMBER 1991 FEES UNDISCLOSED MITSUI FUDOSAN CO LTD JAPAN 30 BILLION YEN OF 43 EUROBONDS DUE JUNE 25 1997 PRICED AT 101485 VIA GOLDMAN SACHS INTERNATIONAL FEES 1 5/8 9303020166 930302 WHO'S NEWS ZYGO CORP ZYGO CORP MIDDLEFIELD CONN THIS MAKER OF MEASURING INSTRUMENTS AND OPTICAL COMPONENTS APPOINTED MARK J BONNEY AS VICE PRESIDENT FINANCE AND ADMINISTRATION MR BONNEY HAD BEEN A EUROPEAN MANAGING DIRECTOR FOR THE DYNAPERT DIVISION OF BLACK & DECKER CORP 9303020165 930302 TECHNOLOGY & HEALTH CORPORATE HEALTHCOST RISE IS CALLED LOWEST IN 5 YEARS ROLE OF HMOS CITED BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CORPORATE HEALTH COSTS REFLECTING THE IMPACT OF MANAGED CARE PROGRAMS ROSE 101 IN 1992 THE LOWEST RATE OF INCREASE IN FIVE YEARS A NEW SURVEY SAYS THE RESULTS PROVIDE A BOOST FOR PROPONENTS OF MANAGED COMPETITION WHO BELIEVE THAT US HEALTH COSTS CAN BEST BE CONTROLLED BY FOSTERING COMPETITION AMONG PREPAID HEALTH PLANS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS BUT THE RISE WAS STILL MORE THAN TRIPLE THE INFLATION RATE AND SOME CORPORATE HEALTHPOLICY EXPERTS WORRY THAT COSTCONTAINMENT MEASURES BEING CONSIDERED BY THE CLINTON ADMINISTRATION COULD UNDERMINE EMPLOYER EFFORTS IN THE COMING MONTHS SOME OF THE PROMISE OF MANAGED CARE IS BEGINNING TO BE REALIZED SAYS JOHN ERB PRINCIPAL AT FOSTER HIGGINS THE BENEFIT CONSULTANT THAT COMPILED THE SURVEY FOR THE FIRST TIME SINCE 1988 HE SAID GROWTH IN COSTS FOR HMOS WAS SIGNIFICANTLY LESS THAN THAT FOR TRADITIONAL FEEFORSERVICE PLANS WE WANT TO SEE WHETHER THIS IS A FLUKE OR AN ONGOING TREND MR ERB SAID THE WIDELY WATCHED SURVEY OF CORPORATE HEALTHCOST TRENDS ALSO FOUND THAT FOR THE FIRST TIME MORE THAN HALF OF EMPLOYEES OF PARTICIPATING COMPANIES WERE ENROLLED IN MANAGED CARE HEALTH PLANS UNDER THE SURVEY ONLY HMOS SOCALLED PREFERRED PROVIDER ORGANIZATIONS AND HMOS IN WHICH MEMBERS CAN OPT TO GET CARE FROM NONHMO DOCTORS ARE CONSIDERED MANAGED CARE PLANS THE SURVEY BASED ON RESPONSES OF 2448 US EMPLOYERS FOUND THAT HMO COSTS ROSE 88 LAST YEAR AFTER RISING 135 IN 1991 BY CONTRAST COSTS FOR TRADITIONAL INDEMNITY PLANS INCREASED 142 SLIGHTLY HIGHER THAN THE 13 INCREASE REPORTED THE PREVIOUS YEAR THE TOTAL AVERAGE HEALTHBENEFITS COSTS REACHED 3968 PER EMPLOYEE UP FROM 3605 THE SURVEY FOUND IT WAS MANAGED CARE THAT MADE THE NUMBERS LOOK GOOD SAID MARY JANE ENGLAND PRESIDENT OF THE WASHINGTON BUSINESS GROUP ON HEALTH A HEALTHPOLICY GROUP FOR MAJOR US COMPANIES THERE'S GROWING EVIDENCE THAT MANAGED CARE WORKS BUT SHE SAID THAT BENEFITS GAINED FROM MANAGED CARE PLANS WERE AT THE EXPENSE OF THOSE WHO DON'T GET CARE IN HEALTHCARE ORGANIZATIONS INTENDED TO BE COSTEFFECTIVE WE NEED TO PUT EVERYONE IN ORGANIZED DELIVERY SYSTEMS SHE ARGUED UNTIL WE DO THAT WE'LL PUSH ON ONE SIDE AND THE PROBLEM WILL POP UP SOMEWHERE ELSE MEANTIME THE CLINTON ADMINISTRATION IS CONSIDERING FREEZING MEDICARE REIMBURSEMENT TO DOCTORS AND HOSPITALS AS AT LEAST A STOPGAP MEASURE TO HELP CONTAIN COSTS AND IT IS ALSO THINKING ABOUT IMPOSING A TAX ON HOSPITAL AND PHYSICIAN FEES AND INSURANCE PREMIUMS TO RAISE MONEY TO HELP COVER THE NATION'S UNINSURED EMPLOYERS SAY SIMILAR FEDERAL POLICIES IN THE PAST HAVE PROMPTED HOSPITALS TO COMPENSATE BY RAISING RATES FOR PRIVATE SECTOR CUSTOMERS A PHENOMENON KNOWN AS COSTSHIFTING PRICE CONTROLS FOR MEDICARE DR ENGLAND SAYS WILL RESULT IN MORE COSTSHIFTING AND DRIVE MORE EMPLOYERS TO USE MANAGED CARE THAT WOULD LIKELY INCREASE COSTS FOR SMALL BUSINESSES WHO LACK THE PURCHASING CLOUT TO ADOPT AGGRESSIVE MANAGED CARE PROGRAMS AND WHO ARE ALREADY SHARPLY REDUCING COVERAGE FOR THEIR WORKERS SUCH CONTROLS COULD ALSO PROMPT HOSPITALS DOCTORS AND HEALTH PLANS TO SEEK TO BOOST RATES IN NEGOTIATED CONTRACTS WITH EMPLOYER HEALTH PLANS THE FOSTER HIGGINS SURVEY ALSO FOUND EMPLOYEES WHO SWITCHED FROM INDEMNITY TO MANAGED CARE PLANS WERE MORE LIKELY TO SELECT PREFERRED PROVIDER ORGANIZATIONS THAT ALLOW A WIDE CHOICE OF DOCTORS HMO PLANS THAT REQUIRE EMPLOYEES TO PAY SUBSTANTIAL OUTOFPOCKET EXPENSES FOR USING NONHMO DOCTORS HAD ALMOST NO GROWTH THE SURVEY ALSO FOUND THAT HEALTH BENEFITS IN 1991 AVERAGED 50 OF CORPORATE PROFITS UP FROM 45 IN 1990 9303020164 930302 MARKETING & MEDIA ADVERTISING FLORIDA FOCUSES ADS ON ITS JOYS RATHER THAN RECENT CRIME WAVE BY KEVIN GOLDMAN FLORIDA'S TOURIST INDUSTRY HAVING RECOVERED FROM LAST SUMMER'S HURRICANE ANDREW DISASTER IS WRESTLING WITH A NEW PUBLIC RELATIONS NIGHTMARE A RASH OF CRIME AGAINST TOURISTS TWO CANADIANS A GERMAN A BRITON AND A VENEZUELAN DIPLOMAT WERE RECENTLY MURDERED DURING SEPARATE ROBBERIES AND IN JANUARY A BLACK NEW YORKER WAS SET AFIRE AND SERIOUSLY BURNED NEAR TAMPA IN WHAT AUTHORITIES CLASSIFIED AS A RACIALLY MOTIVATED ATTACK BUT FLORIDA STATE AND INDUSTRY OFFICALS HAVE DECIDED FOR NOW AT LEAST TO KEEP ADVERTISING FOCUSED ON THE JOYS OF VACATIONING IN FLORIDA RATHER THAN THE DANGERS WE CAN'T HAVE A KNEEJERK REACTION AND PUT OUT ADS REACTING TO ALL OF THIS BECAUSE THAT WILL MAKE MATTERS WORSE SAYS MAYCO VILLAFANA DIRECTOR OF COMMUNICATIONS AT THE GREATER MIAMI CONVENTION & VISITORS BUREAU TO DWELL ON THE NEGATIVES JUST DOESN'T WORK IN ADVERTISING THE STATE READILY RESPONDED AFTER THE HURRICANE WITH ADS THAT SAID FLORIDA WE'RE STILL OPEN BUT OFFICIALS ARE LOATH TO BRING UP THE TOPIC OF MURDER AND SAFETY IN PAID ADVERTISEMENTS INSTEAD FLORIDA GOV LAWTON CHILES LAST WEEK FORMED A STATE TASK FORCE TO EXPLORE WAYS NOT ONLY TO PROTECT TOURISTS FROM VIOLENCE BUT ALSO TO EXPLORE HOW FLORIDA CAN COMBAT THE PERCEPTION THAT CLOUDS OF CRIME ARE HOVERING OVER THE SUNSHINE STATE FLORIDA BOASTS TOURISM AS ITS LARGEST INDUSTRY WITH 29 BILLION FLOWING INTO THE STATE'S ECONOMY IN 1991 FIGURES FOR LAST YEAR AREN'T YET AVAILABLE STATE OFFICIALS CONCEDE THEY MUST DO SOMETHING A BRITISH TABLOID NICKNAMED FLORIDA THE STATE OF TERROR AND ISSUED TIPS ON HOW TO SURVIVE IN THE FLORIDA JUNGLE THE CANADIAN AUTOMOBILE ASSOCIATION ISSUED A WARNING LAST MONTH TO TOURISTS HEADING TO FLORIDA ADVISING THEM TO BRING SMALL AMOUNTS OF CASH AND TO KEEP AUTOMOBILE DOORS LOCKED AND ABC'S TOPRATED WORLD NEWS TONIGHT WITH PETER JENNINGS HIGHLIGHTED THE SITUATION LAST WEEK THE STATE OF FLORIDA AS WELL AS MIAMI AND OTHER LARGE CITIES SUCH AS TAMPA AND ORLANDO HOME OF THE WALT DISNEY AND UNIVERSAL THEME PARKS ARE PLANNING PUBLIC RELATIONS CAMPAIGNS INCLUDING MAKING PUBLIC OFFICIALS SUCH AS MR VILLAFANA AVAILABLE FOR BROADCAST AND OTHER INTERVIEWS TOUTING TOURIST SAFETY ADDITIONALLY THE STATE IS PLANNING TO PUBLISH SHORTLY A NEW PAMPHLET OF SAFETY TIPS IT WILL DISTRIBUTE TO TOURISTS THE ADVICE IS HARDLY GROUNDBREAKING INVEST IN TRAVELER'S CHECKS AND ALWAYS LOCK CARS PUBLIC RELATIONS EXPERTS ACTUALLY APPLAUD FLORIDA'S DECISION NOT TO ADDRESS THE VOLATILE SUBJECT IN ITS ADVERTISING MENTIONING CRIME IN THE ADS COULD FEED INTO THE PERCEPTION SAYS RICHARD KLEIN CHIEF OPERATING OFFICER OF GOLIN/HARRIS COMMUNICATIONS WHICH HANDLES CRISIS SITUATIONS SUCH AS PRODUCT RECALLS UNLESS THERE IS RESEARCH THAT CRIME IS REALLY TURNING PEOPLE AWAY FROM VISITING FLORIDA IT SHOULDN'T BE IN ADS IN A CRISIS YOU ALWAYS HAVE TO BALANCE WHETHER YOU'RE GOING TO MAKE THE CRISIS WORSE THE SITUATION STATE EXECUTIVES CONCEDE IS FRUSTRATING SINCE THEY FEEL THERE IS ANOTHER SIDE OF THE STORY TO TELL ACCORDING TO THE FLORIDA DIVISION OF TOURISM 7000 TOURISTS OR LESS THAN 01 OF THE TOTAL WERE VIOLENT CRIME VICTIMS LAST YEAR IT'S PROBABLY SAFER IN DOWNTOWN ORLANDO OR MIAMI THAN IT IS IN DOWNTOWN LONDON SAYS A SPOKESMAN FOR THE STATE WE MAY HAVE HANDGUNS BUT WE DON'T HAVE BOMBS LIKE LONDON REMAINING MUM IN ADVERTISEMENTS IS THE OPPOSITE TO WHAT JAMAICA DECIDED TO DO A DECADE AGO WHEN THE COUNTRY HAD A NEGATIVE IMAGE BECAUSE OF POLITICAL UNREST ADS ALLUDED TO A CALM POLITICAL CLIMATE WITH SLOGANS SUCH AS COME BACK TO JAMAICA AND MAKE IT JAMAICA AGAIN YOU HAVE TO BE HONEST AND LET PEOPLE KNOW THAT A PROBLEM EXISTS SAYS NOEL MIGNOTT DEPUTY DIRECTOR OF JAMAICA TOURISM WE DECIDED TO USE A CAMPAIGN THAT IS EMOTIONALLY APPEALING AND HAS CALM CONNOTATIONS BUT FLORIDA WILL HAVE NONE OF IT INSTEAD IT WILL REMAIN WITH ITS WELLWORN SLOGAN SEE FLORIDA COAST TO COAST TO COAST A TRADE ORGANIZATION REPRESENTING OVER 100 DRUG COMPANIES PLACED FULLPAGE ADVERTISEMENTS IN 40 NEWSPAPERS TODAY AIMED AT DEFENDING THE INDUSTRY'S PRICING POLICIES WHICH HAVE COME UNDER ATTACK FROM CONGRESS AND THE CLINTON ADMINISTRATION THE CAMPAIGN IS HEADED BY THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION AND CAME ONE DAY AFTER HEALTH AND HUMAN SERVICES SECRETARY DONNA E SHALALA EXPRESSED DOUBT ABOUT THE EXPLANATION BY THE DRUG INDUSTRY FOR THE SHARP RISE IN CHILDHOOD VACCINE PRICES OVER THE PAST DECADE THE ADS BEGIN BECAUSE WE PLAY A VITAL ROLE IN THE HEALTH OF EVERY AMERICAN AND BECAUSE YOU'VE BEEN HEARING SO MUCH NEGATIVE CRITICISM OF US WE THINK THERE ARE SEVERAL IMPORTANT FACTS ABOUT US YOU SHOULD KNOW THE ADS WILL RUN IN MANY NEWSPAPERS INCLUDING THE WALL STREET JOURNAL USA TODAY THE NEW YORK TIMES AND THE LOS ANGELES TIMES PHILIP MORRIS'S MILLER BREWING CO IS JOINING WITH CBS INC'S PRIMETIME HIT SERIES NORTHERN EXPOSURE BEGINNING IN JULY THE MERCHANDISING EFFORT ON THE SHOW ABOUT A NEW YORK DOCTOR IN ALASKA DOVETAILS INTO THE BREWER'S GENUINE DRAFT THE WORLD IS A VERY COOL PLACE CAMPAIGN VIEWERS CAN EARN DISCOUNTS ON THE PURCHASE OF COMPACT DISKS OR CASSETTE AUDIO TAPES OF ROCK MUSIC USED IN THE AD CAMPAIGN AS WELL AS THE TV SERIES MILLER MILLER BREWING CO WILL INTRODUCE MILLER CLEAR LATER THIS MONTH IN SEVERAL MARKETS ADVERTISING WAS ASSIGNED TO CLIFF FREEMAN & PARTNERS NEW YORK WHICH BEGAN WORKING FOR THE BREWER INFORMALLY ABOUT A YEAR AGO ON NEW PRODUCT DEVELOPMENT FURTHER DETAILS ON THE CAMPAIGN AND SPECIFIC MARKETS WEREN'T DISCLOSED SAATCHI SAATCHI & SAATCHI ADVERTISING WORLDWIDE SAID IT WILL OPEN A NEW OFFICE IN ISTANBUL TURKEY WITH 22 MILLION IN ANNUAL BILLINGS 9303020163 930302 GTECH SAYS IT ISN'T PART OF AN INDICTMENT AGAINST EXLOBBYIST WEST GREENWICH RI GTECH HOLDINGS CORP SAID IT HAS NO KNOWLEDGE OF OR INVOLVEMENT IN ANY OF THE CHARGES THAT LED TO THE INDICTMENT IN CALIFORNIA OF A FORMER LOBBYIST CLAYTON R JACKSON MR JACKSON WAS INDICTED LAST WEEK ON MULTIPLE COUNTS THAT INCLUDED RACKETEERING MAIL FRAUD AND OFFERING BRIBES TO ELECTED STATE OFFICIALS THIS MATTER HAS BEEN PENDING FOR MORE THAN A YEAR DURING WHICH TIME GTECH HAS BEEN ASSURED BY THE US ATTORNEY'S OFFICE THAT THE COMPANY HAS NEVER BEEN A TARGET OF THIS INVESTIGATION GTECH SAID THE LOTTERY SYSTEMS MAKER ALSO SAID IT WASN'T ACCUSED OF WRONGDOING AND HAS COOPERATED WITH AUTHORITIES THE COMPANY IS NEITHER MENTIONED NOR REFERRED TO IN THE INDICTMENT GTECH SAID LAST WEEK CALIFORNIA GOV PETE WILSON LAUNCHED A REVIEW OF THE STATE'S LOTTERY BIDDING PROCESS AFTER A COMPETITOR COMPLAINED THAT IT FAVORED GTECH WHOSE STOCK HAS BEEN UNDER PRESSURE AS A RESULT OF THE PROTEST GTECH WHICH WAS THE ONLY BIDDER HAS SAID IT WELCOMES THE REVIEW AND DOESN'T THINK THE BIDDING WAS UNFAIR SEPARATELY GTECH SAID IT SIGNED A CONTRACT TO SUPPLY ONLINE EQUIPMENT AND SERVICES TO THE NEW YORK STATE LOTTERY UNDER THE CONTRACT WHICH IS SUBJECT TO APPROVAL BY THE STATE'S COMPTROLLER'S OFFICE AND THE ATTORNEY GENERAL'S OFFICE GTECH WILL PROVIDE ITS TERMINALS TO ALL NEW YORK LOTTERY LICENSED AGENTS AND WILL RUN DATA CENTERS IN SCHENECTADY AND SAUGERTIES NY AN INITIAL AWARD WAS MADE LATE LAST YEAR BUT WAS CHALLENGED BY A COMPETITOR GTECH DECLINED TO DISCLOSE THE VALUE OF THE CONTRACT A GTECH SPOKESMAN SAID THE NEW YORK STATE LOTTERY PREVIOUSLY PLACED A VALUE OF 1525 MILLION OVER A FIVEYEAR PERIOD ON THE CONTRACT THE COMPANY ALSO SAID OHIO HAS EXERCISED AN OPTION TO EXTEND ITS CONTRACT TO OPERATE THE STATE'S ONLINE LOTTERY SYSTEM FROM FEBRUARY 1993 TO FEBRUARY 1994 IT DECLINED TO DISCLOSE THE EXTENSION'S VALUE 9303020162 930302 WHO'S NEWS SUN LIFE ASSURANCE CO OF CANADA SUN LIFE ASSURANCE CO OF CANADA TORONTO THE MASSACHUSETTS FINANCIAL SERVICES CO UNIT OF THIS INSURER NAMED JEFFREY L SHAMES PRESIDENT SUCCEEDING A KEITH BRODKIN WHO CONTINUES TO SERVE AS CHIEF EXECUTIVE AND CHAIRMAN MR SHAMES 37 YEARS OLD JOINED MFS A 30 BILLION MUTUAL FUND FIRM IN BOSTON AS A SECURITIES ANALYST IN 1983 AND HAS SERVED IN A VARIETY OF POSITIONS MOST RECENTLY AS SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF EQUITY OFFICER 9303020161 930302 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB CARL E REICHARDT WAS NAMED TO THE BOARD FILLING A VACANCY CREATED BY A RETIREMENT MR REICHARDT 61 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OF WELLS FARGO & CO 9303020160 930302 WHO'S NEWS PREFERRED SOLUTIONS INC PREFERRED SOLUTIONS INC NEW YORK JOSEPH W DUVA 58 YEARS OLD HAS JOINED THIS SPECIALTY MANAGED HEALTHCARE COMPANY AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DUVA FORMERLY A PARTNER IN NEW YORK WITH ERNST & YOUNG IN CHARGE OF ITS MANAGED HEALTHCARE PRACTICE IS RESPONSIBLE FOR EXPANDING THIS CLOSELY HELD COMPANY INTERNALLY AND THROUGH ACQUISITIONS HARRY SOZA PREFERRED SOLUTIONS' 40YEAROLD FOUNDER AND FORMER CHAIRMAN REMAINS IN CHARGE OF OPERATIONS 9303020159 930302 WHO'S NEWS ROCKWELL INTERNATIONAL CORP ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF FRANCIS J MCKAY WAS NAMED PRESIDENT OF THE ROCKWELL GRAPHIC SYSTEMS BUSINESS UNIT HE SUCCEEDS JAMES D CAVANAUGH 54 YEARS OLD WHO IS RETIRING MR MCKAY 47 PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF THE UNIT BASED IN WESTMONT ILL THE PARENT HAS INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES 9303020158 930302 ROBERTS PHARMACEUTICAL EXPANDS EATONTOWN NJ ROBERTS PHARMACEUTICAL CORP SAID IT PLANS TO EXPAND INTO THE EUROPEAN DRUG MARKET BY OPENING PHARMACEUTICAL TESTING FACILITIES IN SCOTLAND THE COMPANY'S RESEARCH SUBSIDIARY VRG INTERNATIONAL INC IS LEADING THE EXPANSION WITH FINANCIAL AND TECHNICAL ASSISTANCE FROM THE BRITISH GOVERNMENT ROBERTS SAID THE MOVE ALLOWS IT TO GAIN FASTER GOVERNMENT APPROVAL FOR DRUGS IT HOPES TO SELL BOTH HERE AND IN EUROPE 9303020157 930302 TECHNOLOGY & HEALTH SUN MICROSYSTEMS FORMS UNIT TO WORK ON NEW PORTABLE GEAR MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC JOINING THE RACE TO DEVELOP PERSONAL COMMUNICATORS AND RELATED COMPUTER TECHNOLOGY SAID IT HAS FORMED A WHOLLY OWNED UNIT CALLED FIRSTPERSON INC SUN WILL BE COMPETING WITH SOME HEAVYHITTING RIVALS INCLUDING APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND SOME BIG JAPANESE ELECTRONICS COMPANIES IN DEVELOPING WHAT ARE SOMETIMES REFERRED TO AS PERSONAL DIGITAL ASSISTANTS AND PERSONAL COMMUNICATORS SMALL EASYTOUSE LOWPRICED COMPUTERS AIMED AT THE CONSUMER MARKET WAYNE ROSING FIRSTPERSON'S PRESIDENT SAID THE UNIT'S FIRST PRODUCT IS EXPECTED TO BEGIN SELLING IN ABOUT TWO YEARS MR ROSING REFUSED TO TALK ABOUT SPECIFIC PRODUCTS BUT SAID THE NEW UNIT'S KEY FOCUS WILL BE ON DEVELOPING SOFTWARE THAT ALLOWS DIFFERENT TYPES OF DIGITAL DEVICES TO SWAP DATA AND WORK TOGETHER THOSE DEVICES POTENTIALLY INCLUDE TELEVISIONS RADIOS SATELLITES AND COMPUTERS HE SAID THE UNIT WILL BE BASED IN PALO ALTO CALIF AND CURRENTLY HAS A STAFF OF 12 PEOPLE BUT THAT NUMBER IS EXPECTED TO GROW HE SAID MR ROSING SAID A GOAL OF THE GROUP IS TO LICENSE ITS TECHNOLOGY TO OTHER COMPANIES FOR USE IN THEIR ELECTRONICS PRODUCTS GENERAL MAGIC A SMALL STARTUP COMPANY BASED IN MOUNTAIN VIEW AND BACKED BY APPLE SONY CORP AMERICAN TELEPHONE & TELEGRAPH CO AND OTHERS ANNOUNCED RECENTLY THAT ITS WORKING ON SOFTWARE LETTING COMPUTERS SWAP DATA THAT WOULD BE SIMILAR TO SUN'S PLANS MR ROSING SAID FIRSTPERSON HAS NOT RULED OUT WORKING WITH GENERAL MAGIC SEVERAL COMPUTER MAKERS ARE GAMBLING THAT THE MARKET FOR HANDHELD COMPUTERS WILL BE HUGE ALLOWING PEOPLE TO COMMUNICATE TOGETHER RECEIVE NEWS SHOP AND PERFORM OTHER FUNCTIONS MR ROSING SAID SUN'S EXPERIENCE DEVELOPING WAYS ITS COMPUTERS TALK TO EACH OTHER IN NETWORKS MAKES IT WELL SUITED TO DEVELOP SUCH EQUIPMENT MR ROSING SAID THE NEW UNIT IS BASED ON IDEAS DISCUSSED TWO YEARS AGO WHEN SUN A MAKER OF WORKSTATION COMPUTERS BROKE OUT ITS RESEARCH AND ADVANCED DEVELOPMENT ARM INTO A WHOLLY OWNED UNIT CALLED SUN MICROSYSTEMS LABS WHICH HE HAS HEADED 9303020156 930302 WHO'S NEWS DELL COMPUTER CORP DELL COMPUTER CORP AUSTIN TEXAS GARY ELMORE 49 YEARS OLD WAS NAMED VICE PRESIDENT OF INTERNATIONAL OPERATIONS DEVELOPMENT WITH RESPONSIBILITY FOR ESTABLISHING MANUFACTURING ACTIVITIES OUTSIDE OF THE US AND EUROPE GLENN ARMBRUSTER 41 WAS NAMED VICE PRESIDENT OF MATERIALS AND LOGISTICS MANAGEMENT WITH RESPONSIBILITY FOR WORLDWIDE LOGISTICS OPERATIONS INFORMATION SERVICES AND INVENTORY AND MATERIALS MANAGEMENT 9303020155 930302 WHO'S NEWS ENRON CORP ENRON CORP HOUSTON WENDY L GRAMM WAS NAMED TO THE BOARD OF THIS DIVERSIFIED NATURALGAS COMPANY MS GRAMM IS THE FORMER CHAIRWOMAN OF THE US COMMODITY FUTURES TRADING COMMISSION HER APPOINTMENT EXPANDS ENRON'S BOARD TO 16 MEMBERS 9303020154 930302 FINANCING BUSINESS INTEGRA FINANCIAL CORP INTEGRA FINANCIAL CORP PITTSBURGH SAID IT WILL REDEEM ITS SERIES 231 AND SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK BOTH ISSUES ARE TO BE REDEEMED APRIL 1 WITH THE REDEMPTION PRICE SET AT 25 A SHARE FOR THE SERIES 231 AND 10047 FOR THE SERIES A PLUS ACCRUED DIVIDENDS THE BANK HOLDING COMPANY HAS 799800 SHARES OF SERIES 231 AND 2142 SHARES OF SERIES A OUTSTANDING 9303020153 930302 ALLOU HEALTH ACCORD BRENTWOOD NY ALLOU HEALTH & BEAUTY CARE INC SAID IT AGREED TO BUY THE COMMON STOCK OF M SOBOL INC A DISTRIBUTOR OF BRANDED PHARMACEUTICALS ALLOU HEALTH A DISTRIBUTOR OF HEALTH AND BEAUTY AID PRODUCTS WILL PAY 16 MILLION OVER SEVEN YEARS FOR THE HAUPPAUGE NY COMPANY AND EXPECTS TO FINANCE THE ACQUISITION FROM FUNDS GENERATED BY THE UNIT'S OPERATIONS DAVID SHAMILZADAH SENIOR VICE PRESIDENT OF FINANCE SAID M SOBOL PRESIDENT SIMON MANDELL SOLE STOCKHOLDER WILL REMAIN PRESIDENT OF THE UNIT M SOBOL HAD SALES OF 216 MILLION IN FISCAL 1992 ENDED JUNE 30 ALLOU HEALTH HAD NET INCOME OF 19 MILLION OR 51 CENTS A SHARE ON REVENUE OF 1249 MILLION IN FISCAL 1992 ENDED MARCH 31 9303020152 930302 UNISYS AWARDED NASA CONTRACT BLUE BELL PA UNISYS CORP SAID THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AWARDED IT A CONTRACT TO PROVIDE COMPUTER NETWORKS AND SERVICES THE AWARD WAS ONE OF NINE UNDER A BLANKET AUTHORIZATION UNDER WHICH NASA CAN SPEND AS MUCH AS 827 MILLION NASA IS FREE TO DISTRIBUTE THE TOTAL PROCUREMENT AS IT PLEASES BETWEEN THE NINE CONTRACTS FOR ITS CONTRACT UNISYS WILL WORK AS A GENERAL CONTRACTOR ITS SUBCONTRACTORS ARE INTERPHASE CORP 3COM CORP AND HEWLETTPACKARD CO 9303020151 930302 SI HANDLING SYSTEMS EASTON PA SI HANDLING SYSTEMS INC SAID IT FORMED A JOINT VENTURE WITH AUTOMATED PRESCRIPTION SYSTEMS INC TO PROVIDE AUTOMATED PHARMACY SYSTEMS FOR THE MAILORDER MARKET SI HANDLING IS A MATERIALS HANDLING CONCERN WITH EXPERIENCE IN SUPPLYING AUTOMATION MACHINES TO WHOLESALE AND RETAIL DRUG DISTRIBUTORS AUTOMATED PRESCRIPTION SYSTEMS PINEVILLE LA IS A LEADING MAKER OF AUTOMATED TABLET AND CAPSULE COUNTING MACHINES 9303020150 930302 WHO'S NEWS BURLINGTON NORTHERN INC BURLINGTON NORTHERN INC FORT WORTH TEXAS RICHARD L LEWIS 52 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT FOR THE BURLINGTON NORTHERN RAILROAD SUBSIDIARY MR LEWIS WAS PREVIOUSLY VICE PRESIDENT STRATEGIC PLANNING AT THE UNIT 9303020149 930302 FINANCING BUSINESS GENEVA STEEL GENEVA STEEL VINEYARD UTAH SAID IT AMENDED ITS REGISTRATION STATEMENT FOR A PUBLIC OFFERING OF SENIOR NOTES DUE 2001 TO INCREASE THE AMOUNT OF THE OFFERING TO 135 MILLION FROM 115 MILLION AS PART OF A BROADER FINANCING PLAN THE COMPANY ALSO INCREASED THE AMOUNT OF AN ACCOMPANYING PRIVATE PLACEMENT OF CUMULATIVE REDEEMABLE EXCHANGEABLE PREFERRED STOCK TO 40 MILLION FROM 30 MILLION THE PROCEEDS ARE TO BE USED TO BUY BACK 70 MILLION IN EXISTING TERM DEBT UP FROM 50 MILLION CONTINGENT ON APPROVAL OF THE DEBT HOLDERS 9303020148 930302 WHO'S NEWS AMERICAN EXPRESS CO AMERICAN EXPRESS CO NEW YORK WILLIAM B WEAVER 42 YEARS OLD WAS NAMED TO THE NEW POSITION OF MANAGING DIRECTOR TO COHEAD THE INVESTMENT BANKING FINANCIAL SERVICES GROUP AT LEHMAN BROTHERS A SUBSIDIARY OF AMERICAN EXPRESS'S SECURITIES UNIT SHEARSON LEHMAN BROTHERS INC MR WEAVER PREVIOUSLY MANAGING DIRECTOR OF MERGERS AND ACQUISITIONS AT FIRST BOSTON CORP WILL SHARE DUTIES WITH JOHN J HOPKINS CURRENTLY MANAGING DIRECTOR OF THE INVESTMENT BANKING GROUP 9303020147 930302 FINANCING BUSINESS UNISYS CORP UNISYS CORP BLUE BELL PA SAID IT WILL REDEEM ON MARCH 29 ALL ITS 200 MILLION OUTSTANDING 9 NOTES DUE OCT 1 THE COMPUTER COMPANY SAID IT WILL PAY HOLDERS 100 OF THE PRINCIPAL AMOUNT OF THE NOTES PLUS ACCRUED INTEREST UNISYS SAID THE REDEMPTION COMES AS PART OF ITS EFFORT TO REDUCE DEBT AND MANAGE CASH THE COMPANY'S DEBT IS NOW 42 OF CAPITAL DOWN FROM A PEAK OF 61 IN THE SECOND QUARTER OF 1991 9303020145 930302 FINANCING BUSINESS HALLIBURTON CO HALLIBURTON CO SAID IN DALLAS THAT IT WILL REDEEM ON JUNE 1 133 MILLION PRINCIPAL AMOUNT OF ITS 102 SINKING FUND DEBENTURES DUE JUNE 1 2005 THE REDEMPTION IS PART OF MANDATORY SINKING FUND PROVISIONS THE COMPANY ALSO WILL REDEEM AN ADDITIONAL 199 MILLION OF THESE DEBENTURES UNDER OPTIONAL SINKING FUND PROVISIONS THE PRICE IS 100 OF PRINCIPAL AMOUNT SAID HALLIBURTON A DIVERSIFIED ENERGY SERVICES COMPANY DEBENTURE HOLDERS WILL RECEIVE THE SEMIANNUAL INTEREST PAYMENT DUE JUNE 1 9303020144 930302 INTERNATIONAL SOLVAY TO BOOST UNIT'S CAPITAL BRUSSELS BELGIAN CHEMICAL COMPANY SOLVAY & CIE SAID IT DECIDED TO BOOST THE CAPITAL OF ITS GERMAN UNIT SOLVAY DEUTSCHLAND GMBH OF HANNOVER BY 700 MILLION MARKS 4278 MILLION SOLVAY SAID THE INJECTION OF FRESH FUNDS WOULD NEARLY DOUBLE THE GERMAN UNIT'S TOTAL EQUITY CAPITAL TO 14 BILLION MARKS SOLVAY SAID THE INCREASED CAPITAL IS RELATED TO THE MODERNIZATION OF A SODA ASH FACTORY AND BUILDING OF A LARGE HYDROGEN PEROXIDE COMPLEX AT THE BERNBERG PLANT IN EASTERN GERMANY THE FUNDS WILL ALSO HELP FINANCE CONTINUED EXPANSION OF SOLVAY'S PHARMACEUTICAL RESEARCH CENTER IN HANNOVER SOLVAY SAID ITS EXPANSION STRATEGY CONTINUES TO FOCUS ON GERMANY AND THE EMERGING ECONOMIES OF EASTERN AND CENTRAL EUROPE 9303020143 930302 LETTERS TO THE EDITOR BALANCING COMPASSION AND PROFIT THERE EVIDENTLY WAS A FAILURE TO COMMUNICATE IN MY INTERVIEW WITH YOUR REPORTER ON DRUG PRICES HARSH MEDICINE ATTACK ON DRUG PRICES OPENS CLINTON'S FIGHT FOR HEALTHCARE PLAN PAGE ONE FEB 16 I AM QUOTED AS SAYING THAT THE PHARMACEUTICAL INDUSTRY DESERVED THE WRATH OF THE CURRENT ADMINISTRATION I MERELY MEANT THAT THE INDUSTRY SHOULD HAVE SEEN SOME SUCH WRATH COMING TO SEE A HURRICANE COMING OF COURSE DOES NOT MEAN ONE DESERVES IT IT MERELY MEANS ONE SHOULD BE PREPARED FOR IT IN MORE THAN 20 YEARS OF TEACHING ECONOMICS AND FINANCE AT PRINCETON I HAVE CONSISTENTLY OFFERED MY STUDENTS THE FOLLOWING NORMATIVE PROPOSITION IN A CAPITALIST SOCIETY THE EXPLICITLY STATED SOCIAL RESPONSIBILITY OF INVESTOROWNED ENTITIES IS TO MAXIMIZE THEIR OWNERS' WEALTH WITHOUT VIOLATING THE LAWS OF THE LAND IT CAN BE SAID THAT THE INVESTOROWNED PHARMACEUTICAL INDUSTRY HAS LEGITIMATELY OWNED UP TO THAT MANDATE DURING THE PAST DECADE AT THE SAME TIME IT CAN ALSO BE SAID THAT THE SOCIAL FALLOUT FROM THAT POLICY HAS RAISED LEGITIMATE POLITICAL CONCERNS THAT IS PART AND PARCEL OF A DEMOCRACY IT IS TRUE THAT SPENDING ON PHARMACEUTICAL PRODUCTS REPRESENTS ONLY 7 TO 8 OF TOTAL NATIONAL HEALTH SPENDING IT IS ALSO TRUE THAT TOTAL ANNUAL SPENDING ON MEDICINE TYPICALLY LAGS BEHIND TOTAL ANNUAL CONSUMER SPENDING ON ALCOHOL AND TOBACCO BUT AS EARLY AS 1982 I SOUGHT TO ALERT EXECUTIVES OF THE INDUSTRY TO THE FACT THAT SPENDING ON THEIR PRODUCTS REPRESENTS A HUGE HIT ON THE BUDGETS OF LOWINCOME CHRONICALLY ILL PEOPLE WHO TYPICALLY LACK INSURANCE FOR PRESCRIPTION DRUGS AND THAT SOONER OR LATER THIS FISCAL DISTRESS WOULD TRIGGER LEGITIMATE CONCERNS AMONG POLITICIANS THROUGHOUT THE 1980S I URGED MEMBERS OF THE INDUSTRY TO RECOVER THEIR HUGE OVERHEAD COSTS MAINLY FROM MIDDLE AND UPPERINCOME HOUSEHOLDS AND NOT FROM CHRONICALLY ILL POOR PEOPLE THAT COULD HAVE BEEN ACHIEVED EITHER BY URGING ON CONGRESS COVERAGE FOR MEDICINE FOR ALL LOWINCOME PEOPLE A STRATEGY USED IN OTHER COUNTRIES OR THROUGH SOME ANALOGUE OF FOOD STAMPS A SPECIAL DISCOUNT CREDIT CARD OR SOME OTHER PRICEDISCRIMINATORY DEVICE I RECALL THAT IDEA BEING LAUGHED OFF AS IVY LEAGUE SOCIALISM DURING THE HEADY 1980S IN RETROSPECT IT MAY APPEAR AS GOOD POLITICOECONOMIC ADVICE THE INDUSTRY'S FAILURE TO DEAL WITH THESE POLITICAL PRESSURES PREEMPTIVELY DOES NOT DESERVE PUNISHMENT BUT IT IS A STRATEGIC ERROR NEVERTHELESS PERHAPS THERE IS STILL TIME TO DEVELOP WITH GOVERNMENT A CONSTRUCTIVE COMPROMISE BETWEEN COMPASSION AND THE FISCAL NEEDS OF THE INDUSTRY BILL CLINTON HAS COME DOWN HARD ON AMERICA'S PROFITEERING DRUG COMPANIES NAMING THEM AS MAJOR VILLAINS VENALLY CONSPIRING TO PREVENT FULFILLMENT OF THE CAMPAIGN VISION OF QUALITY HEALTH CARE FOR ALL NOT EVERYONE AGREES WITH HIM FOR MOST OF THE TIME SINCE VIETNAM WAS UNITED IN 1975 HARDLINE POLICY MAKERS IN THAT COUNTRY SHARED BILL CLINTON'S THINKING THE GOVERNMENT PLAYED A CENTRAL ROLE IN CONTROLLING THE PRICE OF MEDICINES IN VIETNAM NOBODY MADE A PROFIT ON MEDICINES BUT BY THE MID1980S THE COUNTRY WAS SUFFERING A SEVERE SHORTAGE OF ALL TYPES OF MEDICINE AND THE GOVERNMENT RECOGNIZED THAT ITS POLICIES MIGHT BE PART OF THE PROBLEM VIETNAM'S CENTRAL GOVERNMENT THEN ADOPTED THE POSITION THAT MARKET FORCES COULD DO MORE THAN ANYTHING ELSE COULD TO SOLVE THE SERIOUS SHORTAGES OF MEDICINES IN THE COUNTRY THEY FREED UP THIS SECTOR OF THE ECONOMY AND THE PROBLEM SOLVED ITSELF WITHIN TWO YEARS SHOPS TO MORE THAN 4000 MOSTLY PRIVATELY OWNED STORES CONSUMERS GREW BY AN INCALCULABLE FACTOR MADE BY STATE ENTERPRISES FELL FROM 80 TO 20 WHILE SUPPLIES FROM MULTINATIONAL COMPANIES WITH RECOGNIZED QUALITY PRODUCTS JUST THOSE COMPANIES MR CLINTON CASTIGATED EXPANDED ALMOST TENFOLD TODAY SOME OF VIETNAM'S MOST ARDENT SUPPORTERS OF FREEMARKET REFORMS ARE DOCTORS AT THE MINISTRY OF HEALTH AND THEIR PATIENTS MAYBE HILLARY CLINTON SHOULD LISTEN TO WHAT THEY HAVE TO SAY BEFORE SHE MAKES ANY RECOMMENDATIONS ON REFORMING THE US HEALTHCARE INDUSTRY MAKING A PROFIT MAY NOT BE SUCH A BAD THING AFTER ALL 9303020142 930302 WHO'S NEWS MEAD CORP MEAD CORP DAYTON OHIO PATRICIA B ROBINSON 40 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE STRATEGY AND PLANNING FOR THIS PAPER AND INFORMATION SERVICES CONCERN MS ROBINSON THE ONLY WOMAN OFFICER AT THE COMPANY HAD BEEN PRESIDENT OF MEAD'S GILBERT PAPER DIVISION SHE SUCCEEDS IAN W MILLAR 42 WHO WAS NAMED PRESIDENT OF MEAD'S PACKAGING DIVISION IN JANUARY PETER H VOGEL 39 FORMERLY PRESIDENT OF THE CENTRAL AREA OF MEAD'S DISTRIBUTION BUSINESS WILL SUCCEED MS ROBINSON AS PRESIDENT OF GILBERT PAPER 9303020141 930302 SHARP UNIT TO BUILD US PLANT MAHWAH NJ SHARP CORP'S US UNIT SAID IT PLANS TO SPEND 22 MILLION TO BUILD A PLANT IN MEMPHIS TENN TO MAKE TONER FOR COPIER MACHINES SHARP ELECTRONICS CORP SAID THE 38890SQUAREFOOT FACILITY WILL PRODUCE ABOUT 600 TONS OF TONER A YEAR FOR THE US COPIER MARKET AND WILL ADD 45 NEW JOBS THE PLANT IS EXPECTED TO BEGIN OPERATING IN APRIL 1994 SHARP CORP BASED IN OSAKA JAPAN IS A MAKER OF ELECTRONICS AND APPLIANCES INCLUDING COPIERS 9303020140 930302 JUSTICES TO DECIDE IF WOMEN MUST PROVE PSYCHOLOGICAL INJURY OF SEX HARASSMENT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER WOMEN EMPLOYEES MUST PROVE THAT THEY SUFFERED SEVERE PSYCHOLOGICAL INJURY AS OPPOSED TO BEING MERELY OFFENDED TO WIN SEXUALHARASSMENT LAWSUITS THE JUSTICES HAVE PREVIOUSLY SAID THAT WOMEN MAY FILE SUIT UNDER A FEDERAL ANTIDISCRIMINATION LAW KNOWN AS TITLE VII IF THEY ARE SUBJECTED TO A HOSTILE WORKING ENVIRONMENT THE HIGH COURT HAS DEFINED THAT TERM TO MEAN A WORKPLACE IN WHICH HARASSMENT IS PERVASIVE OR SEVERE THE SUPREME COURT HASN'T SAID HOWEVER WHETHER A PLAINTIFF IN SUCH A SUIT MUST SHOW ONLY THAT A REASONABLE WOMAN IN HER PLACE WOULD HAVE BEEN OFFENDED BY THE HARASSMENT OR WHETHER SHE MUST ALSO SHOW THAT SHE SUFFERED SERIOUS PSYCHOLOGICAL INJURY LOWER COURTS HAVE ISSUED CONFLICTING DECISIONS ON THIS QUESTION CREATING CONFUSION OVER WHAT THE PROPER STANDARD SHOULD BE THE JUSTICES YESTERDAY AGREED TO RESOLVE THE CONFLICT BY DECIDING THE CASE OF A TENNESSEE WOMAN WHO SUED HER EMPLOYER FORKLIFT SYSTEMS INC OF NASHVILLE TENN THE WOMAN A SUPERVISOR SAID SHE EFFECTIVELY HAD BEEN FORCED TO QUIT THE JOB AFTER CONTINUALLY BEING HARASSED VERBALLY BY THE COMPANY'S PRESIDENT AMONG HIS DISPARAGING COMMENTS THE PRESIDENT PUBLICLY SUGGESTED THAT HE AND THE PLAINTIFF GO TO A NEARBY MOTEL TO NEGOTIATE HER RAISE AND THAT SHE HAD PROMISED SEXUAL FAVORS TO SECURE A CUSTOMER'S BUSINESS THE FIRM'S PRESIDENT CLAIMED HE HAD ONLY BEEN JOKING WHILE SAYING THE COMPANY PRESIDENT'S BEHAVIOR HAD BEEN VULGAR A FEDERAL TRIAL JUDGE DISMISSED THE SUIT A REASONABLE WOMAN WOULD HAVE BEEN OFFENDED THE JUDGE CONCLUDED BUT THE PLAINTIFF HAD FAILED TO MAKE THE ADDITIONAL SHOWING THAT THE HARASSMENT SERIOUSLY AFFECTED HER PSYCHOLOGICAL WELLBEING THE US COURT OF APPEALS FOR THE SIXTH CIRCUIT IN CINCINNATI AFFIRMED THE RULING WITHOUT ELABORATION AND THE ALLEGED VICTIM APPEALED TO THE SUPREME COURT THE CASE DOESN'T INVOLVE FORMS OF GENDER DISCRIMINATION OTHER THAN HARASSMENT FOR INSTANCE IT DOESN'T ADDRESS A COMPANY'S REFUSAL TO HIRE A JOB APPLICANT JUST BECAUSE SHE IS A WOMAN HARRIS VS FORKLIFT SYSTEMS INC 9303020139 930302 WHO'S NEWS COLUMBIA BANKING SYSTEM INC COLUMBIA BANKING SYSTEM INC BELLEVUE WASH WILLIAM W PHILIP 66 YEARS OLD WAS APPOINTED A DIRECTOR OF THIS BANKING CONCERN INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS MR PHILIP WHO RECENTLY RETIRED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PUGET SOUND BANCORP ALSO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COLUMBIA NATIONAL BANKSHARES WHICH IS BEING ACQUIRED BY COLUMBIA BANKING 9303020138 930302 BALDWIN PIANO ACQUISITION PACT CINCINNATI BALDWIN PIANO & ORGAN CO SAID IT EXTENDED THROUGH MARCH 2 AN AGREEMENT IN PRINCIPLE TO BE ACQUIRED BY PERIDOT ASSOCIATES INC AN INVESTMENT GROUP BASED IN WEST PALM BEACH FLA THE PACT WHICH CALLED FOR PERIDOT TO PAY 62 MILLION IN CASH OR 1825 A SHARE HAD BEEN SET TO EXPIRE FEB 28 IN THE ABSENCE OF A DEFINITIVE AGREEMENT THE COMPANY WOULDN'T SAY WHAT CAUSED THE APPARENT DELAY IN THE TALKS BUT A SPOKESMAN SAID I WOULDN'T SIGNAL THIS AS A PROBLEM WE JUST NEED A LITTLE MORE TIME BALDWIN IS THE LARGEST DOMESTIC MAKER OF KEYBOARD INSTRUMENTS PERIDOT WAS FORMED IN JUNE BY WILLIAM EBERLE A FORMER US TRADE REPRESENTATIVE IN THE NIXON AND FORD ADMINISTRATIONS AND WILLIAM A FRANK A FORMER MANAGEMENT CONSULTANT WITH ALEXANDER PROUDFOOT CO IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BALDWIN SHARES CLOSED AT 1750 UP 25 CENTS 9303020137 930302 THE PEPSI SUPER BOWL COMMERCIAL WAS A BLOW TO THESE FOLKS' HEARTS BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO PEPSICO INC IS TRYING TO CHANGE ITS IMAGE AS AN ARTICHOKEBASHER DURING THE SUPER BOWL WHEN AD TIME AVERAGED 850000 FOR A 30SECOND SPOT A PEPSI COMMERCIAL FEATURED A CHEF EXTOLLING ARTICHOKES AS COPY SCROLLED ACROSS THE SCREEN READING ONE DAY THIS MAY BE INTERESTING TO YOU BUT UNTIL THAT TIME COMES THE COMMERCIAL CUT TO SCENES OF HIP PEOPLE CAVORTING ON A BEACH AND SAID BE YOUNG HAVE FUN DRINK PEPSI ARTICHOKES FARMERS WERE STEAMED THE CALIFORNIA ARTICHOKE ADVISORY BOARD FIRED OFF A LETTER TO PEPSI SAYING SOME OF ITS 34 MEMBERS COMPLAINED THAT THE AD TREATED ARTICHOKES IN AN INSENSITIVE MANNER AND WAS A SLAP IN THE FACE TO THE INDUSTRY THE COMMERCIAL THE LETTER SAYS UNDOES EVERYTHING THIS BOARD HAS BEEN TRYING TO DO FOR MORE THAN 30 YEARS INCLUDING EFFORTS TO CONVINCE CONSUMERS THAT ARTICHOKES ARE FUN TO EAT I THINK PEPSI OFFICIALS WERE SURPRISED SAYS MARY COMFORT MANAGER OF THE ARTICHOKE BOARD I'M SURE THEY DIDN'T KNOW WHAT THE CROP WAS ALL ABOUT NOW THE COMPANY IS MORE ARTICHOKEAWARE AT NOON TODAY IT WILL UNVEIL THE PEPSI ARTICHOKE PATCH AT A SPECIAL PLOT RUN BY THE SAN FRANCISCO LEAGUE OF URBAN GARDENERS THE ARTICHOKE ROOTS ARE SCHEDULED TO BE PRESENTED BY ANDREA WOODY THE 1992 ARTICHOKE QUEEN THE ARTICHOKE BOARD SAYS THE FIRST QUEEN CROWNED IN 1947 WAS MARILYN MONROE ARTICHOKES GROWN IN THE PATCH WILL BE DONATED TO A CENTER FOR HOMELESS FAMILIES A PEPSI SPOKESMAN WOULDN'T DISCLOSE THE VALUE OF THIS DONATION BUT CONCEDES THAT IT'S NOT A HUGE SUM OF MONEY HE ADDS THAT PEPSI THE LARGEST ADVERTISER DURING THIS YEAR'S SUPER BOWL HAS EASILY SPENT A TOTAL OF 20 MILLION ON COMMERCIALS DURING THE EVENT IN THE PAST THREE YEARS THE SPOKESMAN SAYS THE ARTICHOKE SPOT WAS AN UNINTENDED SLIGHT ADDING THAT IT COULD HAVE JUST AS EASILY BEEN ANY OTHER VEGETABLE THE AD WILL BE SHOWN TONIGHT IN WHAT COULD BE ITS SWAN SONG HE SAYS THOUGH HE DENIES THE GROWERS' PROTEST CUT THE CAMPAIGN SHORT THE SPECIAL PLANTING IS A FRIENDLY WAY TO RESOLVE THE DISPUTE AND TO SEE THAT LAWYERS DIDN'T GET THEIR CUT THE ARTICHOKE FOLKS THOUGH REMAIN PUZZLED THAT ANYONE WOULD PICK ON THEIR CROP IN THE FIRST PLACE MS COMFORT SAYS A STUDY ONCE COMMISSIONED BY THE ARTICHOKE BOARD FOUND THERE IS NO IMAGE PROBLEM WITH THE VEGETABLE 9303020136 930302 FIRST UNION ACQUISITION CHARLOTTE NC FIRST UNION CORP SAID IT COMPLETED ITS ACQUISITION OF DOMINION BANKSHARES CORP IN A STOCK SWAP VALUED AT MORE THAN 108 BILLION BASED ON AN EXCHANGE FORMULA FIRST UNION SAID THAT IT EXPECTS TO ISSUE ABOUT 23 MILLION COMMON SHARES AND ABOUT 527000 NEW SHARES OF CONVERTIBLE CLASS A PREFERRED STOCK FOR DOMINION IN NEW YORK STOCK EXCHANGE TRADING FIRST UNION ROSE A QUARTER TO 4725 GIVING THE COMMON STOCK PORTION AN INDICATED VALUE OF 108 BILLION THE VALUE OF THE PREFERRED WASN'T AVAILABLE AT DEC 31 FIRST UNION HAD ASSETS OF 513 BILLION WHILE DOMINION HAD ASSETS OF 88 BILLION 9303020135 930302 WHO'S NEWS IPL SYSTEMS INC IPL SYSTEMS INC WALTHAM MASS ROBERT NORTON RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF COMPUTER DATA STORAGE SYSTEMS MR NORTON WHO HAS HELD THE TWO POSTS FOR SEVEN YEARS WILL CONTINUE TO SERVE WHILE A SUCCESSOR IS SOUGHT BUT HIS ROLE ONCE ONE IS NAMED HAS NOT BEEN DETERMINED 9303020134 930302 JOY TECHNOLOGIES SELLS 2 LINES PITTSBURGH JOY TECHNOLOGIES INC SAID IT SOLD ITS CONDENSER AND DAMPER BUSINESSES TO GECALSTHOM FOR ABOUT 145 MILLION JOY A MAKER OF UNDERGROUND MINING EQUIPMENT SAID IT WILL USE THE PROCEEDS TO REPAY BANK DEBT AND REINVEST IN ITS REMAINING BUSINESSES GEC AN ANGLOFRENCH JOINT VENTURE MAKES ENERGY AND RAIL TRANSPORT EQUIPMENT 9303020133 930302 TRACKING TRAVEL BY JONATHAN DAHL THERE'S NO NEED TO WORRY ABOUT READING THE FINE PRINT ON RESTRICTIONS IN AMTRAK ADS THERE ISN'T ANY THOUGH ITS RATES HAVE RESTRICTIONS AMTRAK DOESN'T INCLUDE THEM IN ITS NEWSPAPER ADS AIRLINES IN CONTRAST ROUTINELY LIST RESTRICTIONS BUT AMTRAK USUALLY PROVIDES ONLY A GENERAL DISCLAIMER FARES AND SCHEDULES SUBJECT TO CHANGE WITHOUT NOTICE CHILDREN 215 TRAVEL HALF FARE AND MUST BE ACCOMPANIED BY AN ADULT OTHER RESTRICTIONS APPLY THE UNSPECIFIED RESTRICTIONS CAN BE SIGNIFICANT MANY AMTRAK FARES APPLY ONLY TO NONPEAK PERIODS OR A CERTAIN NUMBER OF SEATS SO THOUGH AMTRAK ADVERTISES A ROUNDTRIP FARE OF 154 FOR TRAVEL BETWEEN NEW YORK AND ATLANTA THE CHEAPEST RATE MAY BE 258 IF NO DISCOUNT SEATS ARE AVAILABLE AN 89 ROUNDTRIP FARE THAT AMTRAK RECENTLY ADVERTISED FOR TRAVEL BETWEEN WASHINGTON AND NEW YORK ISN'T VALID ON FRIDAY AFTERNOONS THE VERY TIME MANY PEOPLE WOULD WANT IT I DON'T SEE WHY AMTRAK THINKS THEY SHOULD BE ANY LESS SPECIFIC THAN AIRLINES SAYS RICHARD KESSEL EXECUTIVE DIRECTOR OF THE NEW YORK STATE CONSUMER PROTECTION BOARD I'VE NEVER BEEN A BIG FAN OF THE AIRLINE ADS BECAUSE YOU NEED A MICROSCOPE TO READ THEM BUT AT LEAST THE RESTRICTIONS ARE THERE AMTRAK SAYS IT HAS TOO MANY RESTRICTIONS TO LIST THEM IN ITS ADS UNLIKE AIRLINES THE FARE RULES VARY CITY BY CITY A SPOKESWOMAN SAYS IT WOULD JUST TAKE UP TOO MUCH SPACE SHE SAYS MR KESSEL ISN'T IMPRESSED BY THAT ARGUMENT IF THE FARE HAS TOO MANY RESTRICTIONS HE SAYS THEN IT REALLY ISN'T A SPECIAL DEAL AND SHOULDN'T BE ADVERTISED AT ALL AMTRAK DOES AT LEAST ADVERTISE ROUNDTRIP INSTEAD OF ONEWAY FARES CONSUMER ADVOCATES HAVE COMPLAINED FOR YEARS THAT AIRLINE ADS LURE TRAVELERS WITH LOW ONEWAY FARES THAT REQUIRE ROUNDTRIP PURCHASE THERE ARE NO GUARANTEES IN LIFE NOT EVEN WHEN CORPORATIONS GET HOTELS AND CAR RENTAL COMPANIES TO SIGN CONTRACTS MANY BIG COMPANIES GET SPECIAL DEALS FROM HOTEL CHAINS AND CAR RENTAL COMPANIES BECAUSE OF THE VOLUME OF BUSINESS THEY BRING THE DISCOUNTS ARE AS DEEP AS 50 OFF NORMAL RATES AND CAN TAKE MONTHS TO NEGOTIATE BUT TO THEIR DISMAY SOME COMPANIES MAY DISCOVER THE STATED DEALS AREN'T AVAILABLE BECAUSE THE CAR RENTAL COMPANY OR HOTEL CHAIN LIMIT THEIR AVAILABILITY THE CONTRACT ISN'T WORTH VERY MUCH IF THE HOTEL DECIDES WHEN THE DISCOUNT IS AVAILABLE SAYS HAROLD SELIGMAN PRESIDENT OF MANAGEMENT ALTERNATIVES A CONSULTING FIRM IN STAMFORD CONN THOUGH THE PRACTICE IS RARE HE SAYS IT'S INCREASING BECAUSE THE TRAVEL INDUSTRY IS SQUEEZED FOR PROFITS MAJOR TRAVEL COMPANIES DENY DOING THIS THREE CONTACTED BY THIS NEWSPAPER AT RANDOM CHOICE HOTELS INTERNATIONAL ITT SHERATON AND THRIFTY RENTACAR SYSTEM EACH INSIST CORPORATE DISCOUNTS AREN'T LIMITED TO A CERTAIN NUMBER OF ROOMS OR VEHICLES CHOICE ACKNOWLEDGES THAT SOME OF ITS CORPORATE DEALS AREN'T VALID DURING SUPERPEAK TIMES AT SOME PROPERTIES BUT WE TELL THE CLIENTS UP FRONT ABOUT THIS SAYS SCOTT PEARSON A REGIONAL VICE PRESIDENT FOR CHOICE WHICH RUNS QUALITY INN RODEWAY INN AND SEVERAL OTHER FRANCHISE CHAINS MR SELIGMAN SAYS CORPORATIONS CAN PROTECT THEMSELVES BY STIPULATING IN THEIR CONTRACTS WITH TRAVEL COMPANIES THAT THE SPECIAL RATES ARE TO BE AVAILABLE AT ALL TIMES THIS JUST IN GUESTS AT HAMPTON INNS PREFER REGULAR COFFEE OVER DECAFFEINATED BY A 3TO1 MARGIN AND THEY RANK DOUGHNUTS AS THEIR FAVORITE BREAKFAST FOOD WITH AN INCREASING FLURRY HOTELS ARE PRODUCING AND HEAVILY PUBLICIZING SURVEYS ON TOPICS AS OBSCURE AS WHERE GUESTS PUT THEIR SHOES AT NIGHT THE FLOOR MORE OFTEN THAN THE CLOSET AND WHAT THEY TALK ABOUT MOST AT HOTEL BARS MADONNA RANKED AHEAD OF THE SUPER BOWL LAST YEAR IN ONE SURVEY THOUGH SHE TRAILED THE PRESIDENTIAL ELECTION ALL OF WHICH RAISES THE QUESTION IS IT WORTH THE MONEY AND EFFORT THE NOVOTEL HOTEL IN NEW YORK PART OF A LARGE INTERNATIONAL CHAIN MAINTAINS IT'S USEFUL TO KNOW HOW MANY GUESTS LOCK THEMSELVES OUT OF THEIR ROOMS 260 OUT OF A TOTAL OF 200000 LAST YEAR AND THAT 20 OF THEM ARE IN VARIOUS STAGES OF UNDRESS BECAUSE OF THE SURVEY THE ACCOR GROUP CHAIN IS CONSIDERING PUTTING TOWELS IN THE ICEMACHINE ROOM ON EACH FLOOR SAYS STEVE BAKER A REGIONAL SALES DIRECTOR FOR NOVOTEL WE THINK IT'S POSITIVE INFORMATION IF YOU WILL HAMPTON INNS A PROMUS SUBSIDIARY CONCEDES THAT MANY OF ITS SURVEYS ARE SELFSERVING AND AIMED AT GENERATING PUBLICITY THE CHAIN OFFERS GUESTS FREE CONTINENTAL BREAKFAST THUS ITS RECENT SURVEY ON BREAKFAST ISSUES REGINALD MALLAMO A HAMPTON INNS MARKETING VICE PRESIDENT SAYS THE SURVEYS AREN'T EXPENSIVE TRAVELERS WANT THIS KIND OF INFORMATION HE SAYS IT TAKES SOME OF THE DULLNESS OUT OF TRAVEL AIRLINE REGULATION MAY BE BROUGHT BACK AFTER ALL IN HAWAII A MEASURE INTRODUCED IN THE LEGISLATURE THERE CALLS FOR A STATE AGENCY TO REGULATE FARES AND ROUTES OVER HAWAIIAN SKIES AGAIN THE BILL HAS THE BACKING OF HAWAII'S TRANSPORTATION DEPARTMENT AND THE TWO MAIN REGIONAL CARRIERS IN HAWAII ALOHA AIRLINES AND HAWAIIAN AIRLINES CRITICS SAY THE BILL WOULD PREVENT MAJOR CARRIERS FROM EXPANDING INTO THE INTERISLAND MARKET IN HAWAII AMERICAN AIRLINES HAS DECIDED TO DROP ITS EFFORTS TO PERSUADE THE FEDERAL TRANSPORTATION DEPARTMENT TO CHANGE ITS DEFINITION OF A MAJOR CARRIER THE PROPOSED CHANGE WOULD HAVE KNOCKED AMERICA WEST AIRLINES AND SOUTHWEST AIRLINES OFF THE AGENCY'S MONTHLY REPORT ON ONTIME PERFORMANCE THOSE SMALLER CARRIERS HAVE REPEATEDLY BEEN AMONG THE INDUSTRY'S BEST PERFORMERS DELTA AIR LINES AND NORTHWEST AIRLINES CONTINUE TO PUSH FOR THE CHANGE IN DEFINITION 9303020132 930302 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK THIS INSURANCE AND FINANCIAL SERVICES COMPANY SAID JAMES M BENSON 46 YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US IN CHARGE OF THE LIFE INSURANCE BUSINESS EQUITABLE LIFE'S OTHER BUSINESS IS ANNUITIES MR BENSON WHOSE POSITION IS NEWLY CREATED JOINS EQUITABLE LIFE FROM MANAGEMENT CONSULTING GROUP LOS ANGELES WHERE HE WORKED WITH MAJOR LIFE INSURERS HE REPORTS TO JOSEPH J MELONE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF EQUITABLE LIFE AND PRESIDENT OF THE PARENT COMPANY 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 9303020131 930302 BANK SOUTH'S PACT WITH AGENCY ATLANTA BANK SOUTH SAID AN AGREEMENT IT HAD WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY HAS BEEN RESCINDED BECAUSE OF IMPROVEMENT IN THE BANK'S OPERATING PERFORMANCE UNDER THE AUGUST 1991 AGREEMENT THE BANK WAS FORMALLY REQUIRED TO MAINTAIN A CERTAIN LEVEL OF CAPITAL AND AN ADEQUATE ALLOWANCE FOR LOAN LOSSES AND IT WAS SUPPOSED TO IMPLEMENT A THREEYEAR STRATEGIC PLAN AMONG OTHER THINGS SINCE THEN BANK SOUTH SAID IT HAS REDUCED NONPERFORMING ASSETS AND INCREASED OPERATING EARNINGS IN EVERY CONSECUTIVE QUARTER TWO WEEKS AGO ITS BOARD REINSTATED THE QUARTERLY DIVIDEND ON ITS COMMON STOCK 9303020130 930302 REVIEW & OUTLOOK EDITORIAL WHO IS WEBSTER HUBBELL WELL WEBSTER HUBBELL IS A CLOSE FRIEND OF BILL CLINTON AND A FORMER LAW PARTNER OF HILLARY RODHAM CLINTON IN LITTLE ROCK'S ROSE LAW FIRM DURING THE PAST FIVE WEEKS HE'S TAKEN UP AN OFFICE IN THE JUSTICE DEPARTMENT IN THE ABSENCE OF AN ATTORNEY GENERAL HE'S DESCRIBED AS THE DEPARTMENT'S LIAISON TO THE WHITE HOUSE NOW HIS INTERVENTION IN A CORRUPTION TRIAL OF A CONGRESSMAN HAS LED TO THE RESIGNATION OF A US ATTORNEY AND A STINGING REBUKE FROM A FEDERAL JUDGE THE CASE CONCERNS REP HAROLD FORD WHO HAS REPRESENTED MEMPHIS TENNESSEE FOR 18 YEARS AND SITS ON THE HOUSE WAYS AND MEANS COMMITTEE THAT WILL PASS ON THE CLINTON ECONOMIC PROGRAM HE WAS INDICTED BY A FEDERAL GRAND JURY IN 1987 ON CHARGES THAT HE ACCEPTED 12 MILLION IN IMPROPER PAYMENTS FROM THE CORRUPT BUTCHER BANKING EMPIRE HE LAUNCHED A SUCCESSFUL POLITICAL CAMPAIGN TO HAVE THE TRIAL MOVED FROM KNOXVILLE TO MEMPHIS WHERE HIS FAMILY HAS A MACHINELIKE GRIP MEMPHIS IS A BLACKMAJORITY CITY AND REP FORD IS A PROMINENT MEMBER OF THE CONGRESSIONAL BLACK CAUCUS HIS BROTHER SITS IN THE STATE SENATE AND HOLDS A COURT POST THAT CONTROLS SOME CITY PENSIONS DURING HIS TRIAL REP FORD CONSTANTLY ACCUSED PROSECUTORS AND WITNESSES OF RACISM AND ORCHESTRATED FREQUENT AND VOCAL DEMONSTRATIONS OUTSIDE THE COURTROOM IN 1990 AFTER 10 WEEKS OF TESTIMONY THE JURY DEADLOCKED WITH EIGHT WHITES VOTING TO CONVICT MR FORD AND FOUR BLACKS VOTING FOR ACQUITTAL THE TRIAL JUDGE US DISTRICT JUDGE ODELL HORTON RULED THAT THE TRIAL HAD BEEN FLAWED BY MR FORD'S INCENDIARY APPEALS TO RACIAL SOLIDARITY JUDGE HORTON A BLACK APPOINTED TO THE BENCH BY JIMMY CARTER NOTED THAT TWO MEMBERS OF THE JURY WERE DETERMINED TO ACQUIT MR FORD REGARDLESS OF THE GOVERNMENT'S EVIDENCE JUROR MISCONDUCT PERMEATED THE TRIAL OF THIS CASE JUDGE HORTON RULED HE ORDERED THAT JURORS FOR THE SECOND TRIAL SHOULD BE SELECTED FROM A NEARBY CITY THAT IS 20 BLACK HE THEN STEPPED DOWN FROM THE CASE DUE TO ILLNESS JURY SELECTION FOR THE RETRIAL PRODUCED A JURY OF 11 WHITES AND ONE BLACK REP FORD CRIED FOUL AND BEGAN LOBBYING THE CLINTON WHITE HOUSE TO HAVE IT DISMISSED JESSE JACKSON INTERVENED WITH WHITE HOUSE OFFICIALS AND MR FORD SPOKE IN MIDFEBRUARY WITH PRESIDENT CLINTON HIMSELF A FEW DAYS LATER MR HUBBELL ARRANGED FOR THE BLACK CAUCUS TO PRESS MR FORD'S CASE WITH STUART GERSON A BUSH HOLDOVER WHO IS ACTING ATTORNEY GENERAL THE NEXT DAY JUST BEFORE THE TRIAL WAS TO BEGIN MR GERSON RENOUNCED THE JUSTICE DEPARTMENT'S LONGSTANDING SUPPORT FOR JUDGE HORTON'S ORDER AND DEMANDED THE NEW JURY BE DISMISSED COURT OFFICIALS IN TENNESSEE WENT BALLISTIC ED BRYANT US ATTORNEY FOR THE WESTERN DISTRICT OF TENNESSEE RESIGNED TWO JUSTICE LAWYERS QUIT THE CASE THE NEW TRIAL JUDGE JEROME TURNER DENIED THE DEPARTMENT'S MOTION IN A BLISTERING STATEMENT A WHITE MAN AS THREE OF THE DEFENDANTS ARE IN THIS CASE IS NOT ENTITLED TO A WHITE JURY LIKEWISE A BLACK MAN AS ONE OF THE DEFENDANTS IS IS NOT ENTITLED TO A GIVEN NUMBER OF BLACK JURORS CHASTENED JUSTICE REVERSED ITSELF MR FORD'S RETRIAL WILL NOW PROCEED THE ISSUE OF BIASED JURIES IS A REAL ONE BUT IT SHOULD BE SETTLED AT THE TRIAL LEVEL AND NOT IN BACKROOM WASHINGTON MEETINGS YET THE CASE STIRS DOUBTS ABOUT THE ADMINISTRATION OF JUSTICE AND INDEED ABOUT THE PATHS OF ACCOUNTABILITY IN THE NEW ADMINISTRATION WHILE THE WHITE HOUSE DENIES THAT IT ASKED JUSTICE TO INTERFERE WITH THE JURYSELECTION PROCESS CAREER JUSTICE OFFICIALS ARE OUTRAGED AT THE PERCEPTION THAT POLITICAL MUSCLE LED TO THE REVERSAL OF THE DEPARTMENT'S POSITION WILLIAM GREENHALGH A GEORGETOWN UNIVERSITY LAW PROFESSOR SAYS HE HAS NEVER HEARD OF SUCH AN ATTEMPT JUST BLUNTLY IT'S WILD HE SAYS REPUBLICANS WANT AN INVESTIGATION BEFORE HER WITHDRAWAL ZOE BAIRD SAID HER TOP PRIORITY WOULD BE TO TAKE POLITICS OUT OF THE JUSTICE DEPARTMENT AS IF ED MEESE HAD DEMANDED A NEW JURY FOR BOB WALLACH NO DOUBT ATTORNEY GENERALDESIGNATE JANET RENO WILL COME TO HER CONFIRMATION HEARINGS PREPARED FOR THE ISSUE AFTER ALL WE SEEM TO HAVE THE SPECTACLE OF HILLARY CLINTON'S FORMER LAW PARTNER FIXING MEETINGS BETWEEN JUSTICE OFFICIALS AND DEMANDWAVING POLS WITH THE POLS GETTING JUSTICE TO DO THEIR BIDDING AND OF WEBSTER HUBBELL A TEMPORARY APPOINTEE NOT SUBJECT TO CONFIRMATION PROCEEDINGS APPARENTLY RUNNING THE JUSTICE DEPARTMENT AS A PARTNER OF THE FIRST LADY WE ARE LEFT TO WONDER WHAT KIND OF JUSTICE DEPARTMENT THIS WILL BE AND WHAT KIND OF ADMINISTRATION 9303020129 930302 ABREAST OF THE MARKET STOCKS SLIDE IN SELLOFF TRIGGERED BY DROP IN MANUFACTURING INDEX BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A WAVE OF COMPUTERGUIDED SELL PROGRAMS KNOCKED MAJOR STOCK MARKET INDEXES LOWER TRANSPORTATION ISSUES WERE HAMMERED BY HEAVY SELLING IN AIRLINE AND RAILROAD STOCKS AS WELL AS A BIG DECLINE FOR ONE TRUCKING COMPANY THE DOW JONES INDUSTRIAL AVERAGE SLID 1540 POINTS OR 05 TO 335541 STANDARD & POOR'S 500STOCK INDEX SLUMPED 137 POINTS OR 03 TO 44201 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 032 POINT OR 01 TO 24376 BUT BIG BOARD ADVANCERS LED DECLINERS 1103852 THE DOW JONES TRANSPORTATION AVERAGE PLUNGED 3344 POINTS OR 22 TO 148466 LARGELY BECAUSE OF THE 6 3/4POINT OR 96 DROP IN ROADWAY SERVICES AS WELL AS LOSSES IN AIRLINE AND RAILROAD STOCKS HEAVY SELLING IN OTHER ECONOMICALLY SENSITIVE STOCKS ALSO TOOK ITS TOLL ON THE MARKET TRADING ON THE BIG BOARD WAS HEAVY WITH 232090000 SHARES CHANGING HANDS DOWN FROM 234160000 FRIDAY STOCKS HELD TO NARROW GAINS FOR MOST OF THE MORNING BUT GAVE UP GROUND AROUND MIDDAY AS INVESTORS STARTED DUMPING CYCLICAL STOCKS MINNESOTA MINING & MANUFACTURING STUMBLED 1 1/4 POINTS TO 104 1/4 INTERNATIONAL PAPER DROPPED 1 1/8 TO 63 1/8 AND GEORGIAPACIFIC FELL 1 3/4 TO 63 3/4 A MORGAN STANLEY INDEX OF CYCLICAL STOCKS FELL 287 POINTS OR 11 TO 25425 WHILE THE FIRM'S BAROMETER OF CONSUMER STOCKS EDGED 018 POINT LOWER TO 19781 THE TRIGGER FOR THE SELLING WAS NEWS THAT THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT DECLINED TO 558 IN FEBRUARY FROM 58 IN JANUARY IT WAS THE FIRST TIME SINCE SEPTEMBER 1992 THAT THE INDEX WHICH MEASURES ACTIVITY IN THE MANUFACTURING SECTOR HASN'T INCREASED FROM THE PREVIOUS MONTH WHAT'S MORE THE NATIONAL ASSOCIATION OF REALTORS SAID SALES OF EXISTING SINGLEFAMILY HOMES SLID 64 IN JANUARY FROM DECEMBER AND THE COMMERCE DEPARTMENT REPORTED THAT CONSTRUCTION SPENDING FELL 13 IN JANUARY FROM DECEMBER ANALYSTS SAID THE DRAG OF GLOOMY ECONOMIC NEWS OUTWEIGHED THE BENEFITS OF A DROP IN INTEREST RATES TYPICALLY TUMBLING INTEREST RATES LIFT STOCK PRICES THIS IS LIKE A SERIAL THAT IS SLOWLY UNWINDING SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY AT VARIOUS POINTS IT LOOKS LIKE INTEREST RATES ARE THE GOOD GUYS AND AT OTHER TIMES IT LOOKS LIKE INTEREST RATES ARE THE BAD GUYS MR WIEN SAID THAT RIGHT NOW STOCK INVESTORS ARE CONFUSED ABOUT PRESIDENT CLINTON'S ECONOMIC PLAN AND IN THAT KIND OF ENVIRONMENT INTEREST RATES CAN'T HELP STOCKS SIGNIFICANTLY BUT AT SOME POINT MR WIEN SAID STOCK INVESTORS WILL REALIZE THAT CORPORATE EARNINGS WON'T BE SO DISAPPOINTING THAT LOWER INTEREST RATES ARE POSITIVE AND THAT TACKLING THE BUDGET DEFICIT EVEN WITH HIGHER TAXES MAY BE GOOD FOR THE ECONOMY YESTERDAY STANDARD & POOR'S REPORTED THAT 173 COMPANIES BOOSTED THEIR DIVIDENDS LAST MONTH UP FROM 146 IN JANUARY AND 129 A YEAR EARLIER BUT 15 COMPANIES LOWERED THEIR DIVIDENDS ALSO SLIGHTLY HIGHER THAN IN JANUARY AND IN FEBRUARY 1992 EIGHT COMPANIES OMITTED THEIR DIVIDENDS IN FEBRUARY DOWN FROM 11 IN JANUARY AND NINE IN FEBRUARY 1992 ED LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY NOTED THAT INVESTORS HAVE BEEN POURING MONEY INTO OIL AND MORE DEFENSIVE STOCKS IN RECENT DAYS FOR INSTANCE HE POINTED OUT THAT WHILE THE OVERALL MARKET FINISHED LOWER SOME CONSUMER NONDURABLE STOCKS SUCH AS PROCTER & GAMBLE AND GILLETTE FARED WELL P&G CLIMBED 3/4 TO 52 3/4 AND GILLETTE ADDED 1/2 TO 60 1/8 BUT OTHERS SUCH AS TOBACCO STOCKS CONTINUED TO GET CLOBBERED ON FEARS THAT PRESIDENT CLINTON WILL PROPOSE A TAX ON TOBACCO TO PAY FOR HIS HEALTH CARE PLAN PHILIP MORRIS TUMBLED 1 7/8 TO 65 1/4 AND RJR NABISCO EDGED 1/8 POINT LOWER TO 8 3/8 COMPAQ COMPUTER SLID 3 3/8 TO 41 7/8 SOUNDVIEW FINANCIAL LOWERED ITS SHORTTERM RATING ON THE COMPUTER MAKER'S STOCK TO HOLD FROM BUY A SOURCE AT THE FIRM SAID SHARES OF 20TH CENTURY INDUSTRIES JUMPED 3 TO 31 7/8 THE CALIFORNIA INSURANCE CONCERN'S STOCK WAS BUOYED AFTER A JUDGE RULED THAT REGULATIONS FOR IMPLEMENTING CALIFORNIA PROPOSITION 103 WHICH LIMITS AUTO INSURERS TO A BLANKET 10 RATE OF RETURN ARE UNCONSTITUTIONAL THE RULING MEANS THAT THE BULK OF REBATES TO CALIFORNIA DRIVERS UNDER THE 1988 INITIATIVE WILL BE FURTHER DELAYED AND MAY BE SMALLER THAN EXPECTED WARNERLAMBERT GAINED 3/8 TO 66 3/8 THE DRUG COMPANY DECLINED TO COMMENT ON A PUBLISHED REPORT THAT IT IS IN NEGOTIATIONS TO BUY WILKINSON SWORD LTD FROM EEMLAND HOLDINGS NV A DUTCH HOLDING COMPANY WARNERLAMBERT OWNS THE SCHICK BRAND OF RAZORS AND BLADES BUT RONALD NORDMANN AN ANALYST AT PAINEWEBBER SAID WARNERLAMBERT IN RECENT YEARS APPEARED TO TARGET SCHICK FOR EVENTUAL DIVESTITURE BUYING WILKINSON SWORD WOULD INDICATE A REVERSAL OF THAT POSITION OTHER DRUG STOCKS ALSO ADVANCED MERCK RALLIED 1 TO 39 1/2 BRISTOLMYERS SQUIBB ROSE 1 1/2 TO 58 1/4 AND SCHERINGPLOUGH ENDED UP 1 1/2 AT 58 1/2 CR BARD SLUMPED 3 3/4 TO 25 AFTER THE COMPANY SAID FIRST QUARTER SALES WOULDN'T MEET EXPECTATIONS H&R BLOCK DROPPED 3 TO 38 3/8 FIRST BOSTON ANALYST MARTIN ROMM CUT HIS RATING ON THE COMPANY TO HOLD FROM BUY THERMEDICS GAINED 1 5/8 TO 13 1/2 ON THE AMERICAN STOCK EXCHANGE THE SHARES OF THE BOMBDETECTION EQUIPMENT MAKER RALLIED IN THE WAKE OF THE BOMB BLAST AT NEW YORK'S WORLD TRADE CENTER WACKENHUT A SECURITY SYSTEMS COMPANY GAINED 1/2 TO 15 1/8 VARITY ADVANCED 2 1/8 TO 30 1/4 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN YESTERDAY REPORTED THAT THE ONCECOMATOSE FARM MACHINERY COMPANY IS EXPECTED TO STUN WALL STREET SOON BY REPORTING STRONGER RESULTS THAN SOME ANALYSTS EXPECT FOR THE FISCAL FOURTH QUARTER SENSORMATIC ELECTRONICS LEAPT 2 1/8 TO 35 WALMART STORES WILL INSTALL SENSORMATIC'S ULTRA MAX ELECTRONIC ARTICLESURVEILLANCE SYSTEM IN AN ADDITIONAL 110 STORES ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9303020128 930302 KNIGHTRIDDER BUYS DATASTAR MIAMI KNIGHTRIDDER INC SAID IT ACQUIRED DATASTAR A EUROPEAN ONLINEINFORMATION SERVICE FROM MOTORCOLUMBUS AG A SWISS ENGINEERING COMPANY THE PURCHASE PRICE WASN'T DISCLOSED KNIGHTRIDDER A MEDIA COMPANY SAID ITS DIALOG INFORMATION SERVICES INC ONLINEINFORMATION UNIT AND DATASTAR WILL OPERATE JOINTLY IN SERVICE AND SALES THE COMBINATION OF DIALOG AND DATASTAR WILL PROVIDE CUSTOMERS ACCESS TO A GLOBAL INFORMATION SERVICES COMPANY KNIGHTRIDDER SAID DATASTAR HAS ACCESS TO 250 DATABASES FOR MEDICAL BUSINESS AND PHARMACEUTICAL TOPICS AMONG OTHERS 9303020127 930302 MARTIN MARIETTA CONTRACT BETHESDA MD MARTIN MARIETTA CORP SAID THE US NAVY EXERCISED A CONTRACT OPTION VALUED AT 469 MILLION FOR PRODUCTION OF 10 TB29 ADVANCED SUBMARINE THINLINE TOWED SONAR ARRAYS EIGHT RECEIVERS AND SEVERAL TEST UNITS THE ORIGINAL CONTRACT FOR DEVELOPMENT AND LIMITED PRODUCTION WAS AWARDED IN JUNE 1990 AND WAS VALUED AT ROUGHLY 49 MILLION MARTIN MARIETTA SAID THE TOWED ARRAYS WHICH WILL BE PRODUCED BY MARTIN MARIETTA AERO & NAVAL SYSTEMS IN GLEN BURNIE MD WILL BE DELIVERED BEGINNING IN 1994 TOWED ARRAYS ARE UNDERWATER SYSTEMS USED IN DETECTION LOCATION AND TRACKING OF SUBMARINES AND SURFACE SHIPS 9303020126 930302 WESTERN INVESTMENT SUIT ENDS SAN FRANCISCO WESTERN INVESTMENT REAL ESTATE TRUST SAID THE PLAINTIFF IN A 1992 SHAREHOLDER LAWSUIT AGAINST THE CONCERN HAS VOLUNTARILY DISMISSED THE SUIT THE SUIT ALLEGED VIOLATIONS OF FEDERAL SECURITIES LAWS AND CALIFORNIA LAW WESTERN SAID IT WON'T MAKE ANY PAYMENT TO THE PLAINTIFF OR HER COUNSEL FOR THE DISMISSAL OF THE SUIT WHICH ALLEGED THERE WERE MISREPRESENTATIONS AND OMISSIONS IN WESTERN'S FILINGS TO THE SECURITIES AND EXCHANGE COMMISSION RELATED TO MASTER LEASES BETWEEN THE TRUST AND CONNOLLY DEVELOPMENT INC A SACRAMENTO CALIF REAL ESTATE DEVELOPER 9303020125 930302 SAGE ALERTING SYSTEMS PURCHASE STAMFORD CONN SAGE ALERTING SYSTEMS INC SAID ITS DATA COMMUNICATIONS AND NETWORKING UNIT WILL ACQUIRE SYSCOMM INTERNATIONAL CORP IN A STOCKANDCASH TRANSACTION SAGE DIDN'T DISCLOSE THE TERMS OF THE TRANSACTION BUT SAID THAT SYSCOMM A DATA COMMUNICATIONS COMPANY BASED IN HAUPPAUGE NY IS PROJECTING 60 MILLION IN SALES FOR THIS YEAR THE COMPANY A DESIGNER OF EMERGENCY ALERTING AND COMMUNICATIONS PRODUCTS EXPECTS THE ACQUISITION TO BE COMPLETED WITHIN 45 DAYS 9303020124 930302 WHO'S NEWS FLEET TO SHUFFLE MANAGERS DECLINES TO CONFIRM NAMES BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL FLEET FINANCIAL GROUP INC SAID IT IS PLANNING A MANAGEMENT REORGANIZATION BUT REFUSED TO CONFIRM ANALYSTS' REPORTS THAT TWO OF ITS THREE VICE CHAIRMEN WOULD STEP DOWN IN THE SHUFFLE A SPOKESMAN FOR NEW ENGLAND'S LARGEST BANK SAID ONLY THAT THE PROVIDENCE RI COMPANY HAS BEEN DISCUSSING A MANAGEMENT REORGANIZATION BUT NO FINAL DECISIONS HAVE BEEN MADE CHARLES W CAREY IN CHARGE OF COMMERCIAL BANKING REAL ESTATE INVESTMENT BANKING AND ASSETBASED LENDING OPERATIONS AND ROBERT L MUSHKIN WHO RUNS FLEET'S NEW ENGLAND AND NEW YORK BANKING GROUPS WERE IDENTIFIED BY ANALYSTS AS BEING AFFECTED BY THE REORGANIZATION A FLEET SPOKESMAN SAID THE TWO MEN WERE STILL EMPLOYED AS OF LATE YESTERDAY BUT DECLINED TO SAY WHETHER THEIR STATUS MIGHT CHANGE IN THE REORGANIZATION THE REASON FOR THE REORGANIZATION WAS UNCLEAR AND THE SPOKESMAN WOULDN'T ELABORATE HOWEVER THE COMPANY HAS BEEN CRITICIZED FOR THE OPERATIONS OF ITS GEORGIABASED SECONDMORTGAGE LENDING BUSINESS WHICH HAS BEEN ACCUSED BY STATE OFFICALS AND IN LAWSUITS OF CHARGING EXORBITANT INTEREST RATES AND FEES TO LOWINCOME BORROWERS MR CAREY OVERSEES THAT PORTION OF THE BANK'S OPERATIONS AMONG MANY OTHERS THE SPOKESMAN DENIED THAT THE REORGANIZATION WAS RELATED HE SAID THAT DETAILS OF THE REORGANIZATION WOULD BE ANNOUNCED LATER THIS MONTH MR MUSHKIN COULDN'T BE REACHED YESTERDAY A PERSON ANSWERING THE PHONE AT MR CAREY'S TELEPHONE NUMBER IN RHODE ISLAND SAID HE WAS UNAVAILABLE FLEET'S PERFORMANCE HAS IMPROVED SHARPLY IN THE PAST YEAR NET INCOME FOR 1992 WAS 280 MILLION OR 178 A SHARE COMPARED WITH YEAREARLIER NET OF 98 MILLION OR 67 CENTS A SHARE INCLUDING AN AFTERTAX CHARGE DESPITE THE STRONG TURNAROUND THEY HAVEN'T MADE THE PROGRESS IN REDUCING PROBLEM ASSETS AS FAST AS OTHER MAJOR BANKS SAID GERARD CASSIDY AN ANALYST WITH TUCKER ANTHONY INC HE SPECULATED THAT THE SHAKEUP MAY BE RELATED TO THOSE OPERATIONAL SHORTCOMINGS EVEN IF THE VICE CHAIRMEN HAVEN'T RESIGNED YET FLEET'S FAILURE TO BACK THEM STRONGLY IN THE FACE OF QUESTIONS ABOUT THEIR FUTURE SUGGESTS THAT THEY'RE BEING FORCED OUT HE SAID A THIRD VICE CHAIRMAN JOHN W FLYNN THE BANK'S CHIEF FINANCIAL OFFICER ANNOUNCED LAST YEAR HIS INTENTION TO RESIGN THIS SPRING ALL THREE VICE CHAIRMEN WERE NAMED BY MR MURRAY TO THE NEWLY CREATED POSITIONS ONLY 2 1/2 YEARS AGO 9303020123 930302 MUNICIPAL WASTEDISPOSAL INVESTMENTS UNDERMINED BY FEDERAL COURT RULINGS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL MUNICIPALITIES AND STATES COULD FACE BIG LOSSES ON THEIR GARBAGE INCINERATORS AND OTHER WASTE FACILITIES FOLLOWING A TRIO OF RECENT FEDERAL COURT RULINGS THAT LIMITS GOVERNMENTS' CONTROL OVER WHERE TRASH IS DISPOSED THE RULINGS ARE AN OUTGROWTH OF THE INCREASINGLY FIERCE COMPETITION BETWEEN THE PUBLIC AND PRIVATE SECTORS IN THE 25 BILLION US TRASH HAULINGANDDUMP BUSINESS THE COMPETITION HAS BEEN INTENSIFIED BECAUSE CONTRARY TO THE WIDELY HELD NOTION OF A DISPOSAL SHORTAGE THERE IS A GLUT OF DUMP SPACE IN MANY PARTS OF THE COUNTRY THAT HAS DRIVEN DISPOSAL PRICES DOWNWARD AND MADE SOME OPERATORS DESPERATE FOR VOLUME THE RULINGS STRIKING DOWN A PRACTICE KNOWN AS FLOW CONTROL UNDER WHICH A MUNICIPALITY REQUIRES ALL TRASH GENERATED WITHIN ITS BORDERS TO GO TO CERTAIN DISPOSAL SITES COULD BE MOST TROUBLESOME TO COMMUNITIES THAT HAVE INVESTED HEAVILY IN MODERN DISPOSAL PLANTS FLOW CONTROL PROVIDES A MONOPOLY IN EFFECT ALLOWING GOVERNMENTS TO MAKE LONGTERM INVESTMENTS IN DISPOSAL SITES ENSURED THEY'LL HAVE THE REVENUES TO PAY FOR THE INVESTMENT PALM BEACH COUNTY FLA FOR INSTANCE THROUGH ITS SOLID WASTE AUTHORITY BORROWED 420 MILLION THROUGH A BOND OFFERING TO BUILD A BIG TRASHTOENERGY PLANT AND DUMP TO HANDLE ITS APPROXIMATELY 12 MILLION TONS OF TRASH A YEAR DON LOCKHART INTERIM EXECUTIVE DIRECTOR OF THE AUTHORITY SAID LAWYERS ARE PORING OVER THE RECENT RULINGS IT CAN'T BE TAKEN LIGHTLY ALREADY MR LOCKHART SAID HAULERS NEAR THE COUNTY'S BORDERS CHEAT AND TAKE SOME TRASH VOLUME TO CHEAPER SITES ELSEWHERE IF THE TRASHTOENERGY PLANT DOESN'T TAKE AT LEAST 624000 TONS A YEAR IT CAN'T RUN AT FULL EFFICIENCY AND COULD HAVE TROUBLE GENERATING ENOUGH REVENUE TO SERVICE THE BOND DEBT H LANIER HICKMAN JR CHIEF OF THE SOLID WASTE ASSOCIATION OF NORTH AMERICA A GROUP OF MOSTLY MUNICIPAL TRASH OFFICIALS PREDICTS BIG TROUBLE ANARCHY WILL REIGN THROUGHOUT THE SOLID WASTE FIELD THE RULINGS ARE THE SECOND BIG SETBACK FOR STATES IN FEDERAL COURTS INVOLVING THE WASTE BUSINESS THE SUPREME COURT RULED LAST YEAR THAT STATES CAN'T BAR OUTOFSTATE HAZARDOUS WASTE FROM LICENSED SITES WITHIN THEIR BORDERS THE COURT RULED THAT SUCH MOVES VIOLATE THE CONSTITUTION'S COMMERCE CLAUSE THAT PROTECTS INTERSTATE TRADE FOR THE FEW STATES THAT HAVE COMPLIED WITH FEDERAL GUIDELINES ABOUT PROVIDING FOR THEIR OWN HAZARDOUS WASTE DISPOSAL THE RULING IN EFFECT MEANT THEY'D SET THEMSELVES UP TO BE DUMPS FOR NEIGHBORING STATES THAT DID NOTHING NOW MUNICIPALITIES THAT INVESTED TO ENSURE LONGTERM DISPOSAL CAPACITY FOR THEIR TRASH COULD HAVE THOSE INVESTMENTS UNDERMINED THE LATEST RULING FEB 18 BY THE EIGHTH US CIRCUIT COURT OF APPEALS IN MINNEAPOLIS STRUCK DOWN A TRASH ORDINANCE SET UP BY TWO SMALL SOUTHERN MINNESOTA COUNTIES THAT REQUIRED MOST OF THEIR TRASH TO GO TO AN 8 MILLION COMPOSTING PLANT THEY BUILT THE COST IS 50 A TON A HAULER WITH A DUMP JUST SOUTH IN IOWA SUED SAYING THE ORDINANCE RESTRICTS INTERSTATE TRADE AND VIOLATES THE CONSTITUTION'S COMMERCE CLAUSE THE HAULER WASTE SYSTEMS CORP A PRIVATELY HELD LAKE MILLS IOWA CONCERN HAS A DUMP THAT CHARGES JUST 30 A TON RON ROTH WHOSE FAMILY OWNS WASTE SYSTEMS SAID THE LAKE MILLS DUMP IS BADLY IN NEED OF VOLUME WITH 50 YEARS' CAPACITY AT THE CURRENT RATE OF USE AND THAT THE COUNTIES MARTIN AND FARIBAULT DIDN'T NEED TO BUILD THE COMPOSTING PLANT IN THE FIRST PLACE SIMILAR FEDERAL COURT RULINGS IN ALABAMA AND RHODE ISLAND CASES HAVE SOME MUNICIPAL OFFICIALS WORRIED A GROUP OF PRIVATE HAULERS AND DUMP OPERATORS THE NATIONAL SOLID WASTE MANAGEMENT ASSOCIATION APPLAUDS THE RULINGS AND SUGGESTS MUNICIPALITIES ENTER INTO LONGTERM CONTRACTS WITH PRIVATE COMPANIES TO ASSURE DISPOSAL CAPACITY THERE ARE WAYS SHORT OF HAVING THE PUBLIC SECTOR OWN AND OPERATE IT SAID BRUCE J PARKER THE GROUP'S GENERAL COUNSEL BUT PUBLIC CONTROL HAS BEEN THE RALLYING CRY OF MUNICIPAL TRASH OFFICIALS IN RECENT YEARS WHO FEEL THEY WERE OVERCHARGED IN INSTANCES WHEN PRIVATE FIRMS CONTROLLED THE DISPOSAL MARKET A SERIES OF SUCCESSFUL CIVIL AND CRIMINAL PRICEFIXING CASES AGAINST THE TWO LARGEST HAULERS WASTE MANAGEMENT INC AND BROWNINGFERRIS INDUSTRIES INC FURTHERED THE DISTRUST TWO EARLIER FEDERAL COURT RULINGS UPHELD FLOW CONTROL ARRANGEMENTS IN AKRON OHIO AND THE STATE OF DELAWARE THE DELAWARE SOLID WASTE AUTHORITY INVESTED 90 MILLION IN DUMPS AND OTHER WASTE FACILITIES TO HANDLE THE STATE'S 800000 TONS A YEAR NC VASUKI THE AUTHORITY'S CHIEF SAYS HE CONCENTRATES ON KEEPING PRICES DOWN AND SERVICE STANDARDS HIGH SO THAT HAULERS WON'T THINK TO BOLT WE GIVE 18 MONTHS NOTICE OF ANY RATE INCREASE HE SAID TRUCKS ARE IN AND OUT OF OUR SITES IN ELEVEN MINUTES 9303020122 930302 PEOPLES TELEPHONE ACQUISITION MIAMI PEOPLES TELEPHONE CO SAID ITS PTC CELLULAR INC SUBSIDIARY AGREED TO ACQUIRE THE ASSETS AND ASSUME CERTAIN LIABILITIES OF PORTABLE CELLULAR COMMUNICATIONS INC A MAJORITYOWNED SUBSIDIARY OF NATIONWIDE CELLULAR SERVICE INC PEOPLES TELEPHONE A PUBLIC AND CELLULAR PHONE COMPANY SAID IT WILL PAY ABOUT 25 MILLION IN CASH AND ISSUE 25 OF PTC CELLULAR'S COMMON STOCK FOR PORTABLE CELLULAR A SPOKESMAN FOR PEOPLES TELEPHONE SAID HE COULDN'T YET PLACE A VALUE ON THE STOCK PORTABLE CELLULAR OPERATES ABOUT 2700 CELLULAR TELEPHONES INSTALLED IN CARS AND 600 PORTABLE CELLULAR TELEPHONES WITH RENTAL CAR COMPANIES AND HOTELS THE CLOSING OF THE ACQUISITION IS SUBJECT TO REGULATORY APPROVALS AMONG OTHER THINGS NATIONWIDE CELLULAR IS BASED IN VALLEY STREAM NY 9303020121 930302 FINANCING BUSINESS ROADMASTER INDUSTRIES INC ROADMASTER INDUSTRIES INC ENGLEWOOD COLO SAID IT SIGNED A LETTER OF INTENT WITH UNDERWRITERS FOR A 30 MILLION PUBLIC OFFERING OF 8 CONVERTIBLE SUBORDINATED NOTES DUE 2003 THE NOTES CALLABLE TWO YEARS AFTER ISSUE UNDER CERTAIN TERMS WILL BE CONVERTIBLE INTO SHARES OF THE SPORTING GOODS COMPANY'S COMMON STOCK AT A PRICE EQUAL TO BETWEEN 120 AND 130 OF THE CLOSING PRICE ON THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT WHICH HAS YET TO BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PROCEEDS WILL BE USED TO REDUCE BALANCES ON TERM LOANS AND REVOLVING LINES OF CREDIT AS WELL AS TO FINANCE EXPANSION AND CAPITAL IMPROVEMENTS ROADMASTER SAID 9303020120 930302 WANG LABORATORIES HOLDER VOTE LOWELL MASS WANG LABORATORIES INC SAID THAT SHAREHOLDERS AT ITS ANNUAL MEETING WHICH WAS RECONVENED LATE YESTERDAY ELECTED ALL 10 DIRECTORS WHO WERE STANDING FOR ELECTION IN THE PROXY ON THURSDAY THE MEETING WAS ADJOURNED UNTIL YESTERDAY AFTER A DISPUTE ON THE BOARD ABOUT ITS SIZE THAT DISPUTE WAS RESOLVED AND NO CHANGES WERE MADE IN THE SIZE OF THE COMPUTER MAKER'S BOARD A SPOKESMAN SAID WANG OPERATING UNDER CHAPTER 11 OF THE BANKRUPTCY CODE IS EXPECTED TO FILE A PLAN OF REORGANIZATION LATER THIS MONTH 9303020119 930302 ECONOMY FEBRUARY MANUFACTURING GROWTH EASED SURVEY OF PURCHASING MANAGERS SHOWS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANUFACTURING ACTIVITY GREW AT A SLOWER PACE IN FEBRUARY ACCORDING TO A NEW SURVEY OF PURCHASING MANAGERS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX WHICH PROVIDES ONE OF THE FIRST LOOKS AT HOW MANUFACTURERS DID LAST MONTH SLIPPED 22 POINTS TO 558 IN FEBRUARY DESPITE THE DROP WHICH COMES ON TOP OF AN IMPRESSIVE FOURMONTH STRING OF INCREASES THE MANUFACTURING SECTOR IS STILL IMPROVING IN GENERAL A READING ABOVE 50 MEANS THAT BUSINESS IS EXPANDING AND A READING BELOW 50 MEANS IT'S CONTRACTING GROWTH IN THE INDEX WAS VERY BROADBASED SIXTEEN INDUSTRIES OUT OF 20 REPORTED A PICKUP IN BUSINESS THE FIRST TIME GROWTH HAS BEEN THAT WIDESPREAD SINCE MAY 1992 GROWTH MAY BE OFF SOMEWHAT BUT THE BREADTH OF THE EXPANSION IS VERY ENCOURAGING SAID ROBERT BRETZ CHAIRMAN OF THE SURVEY AND DIRECTOR OF PURCHASING AT PITNEY BOWES INC STILL THE SLOWDOWN IN THE INDEX UNDERSCORES THE FACT THAT THIS RECOVERY IS LIKELY TO REMAIN SLUGGISH DESPITE THE STRING OF FAIRLY STRONG ECONOMIC INDICATORS AT THE END OF LAST YEAR EVIDENCE IS MOUNTING THAT THE FIRST QUARTER OF 1993 IS PROCEEDING AT A SLOWER PACE THAN THE LAST QUARTER OF 1992 CONSUMERS AREN'T BUYING AS MUCH AND THEIR OPTIMISM HAS SLIPPED AND THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING DROPPED 13 IN JANUARY TO AN ANNUAL RATE OF 4308 BILLION AFTER A REVISED INCREASE OF 08 IN DECEMBER SPENDING ROSE FOR SINGLEFAMILY HOMES BUT DROPPED FOR INDUSTRIAL AND OFFICE BUILDINGS HOTELS MOTELS AND APARTMENT BUILDINGS A SUBSTANTIAL SLOWDOWN IN NEW ORDERS WAS THE PRIMARY REASON FOR THE DETERIORATION OF THE PURCHASING MANAGERS' OVERALL INDEX PRODUCTION CONTINUED TO GROW IN FEBRUARY BUT AT A SLOWER PACE THAN THE MONTH BEFORE ORDER BACKLOGS INCREASED IN FEBRUARY WHICH COULD BE A SIGN THAT MANUFACTURERS WILL NEED TO HIRE MORE WORKERS TO KEEP UP WITH DEMAND SEPARATELY THE COMMERCE DEPARTMENT SAID THAT AFTER ADJUSTMENTS FOR INFLATION THE DISPOSABLE INCOME OF AMERICANS WAS UNCHANGED IN JANUARY AND THEY SPENT 01 LESS ON GOODS AND SERVICES IN DECEMBER INCOMES INCREASED 1 AND SPENDING ROSE BY 08 AS A RESULT OF THE DECLINE IN SPENDING AS INCOME HELD STEADY THE SAVINGS RATE OF AMERICANS ROSE SLIGHTLY TO 46 IN JANUARY FROM 45 THE MONTH BEFORE ALSO THE COMMERCE DEPARTMENT SAID MERCHANDISE TRADE ON A BALANCEOFPAYMENTS BASIS DECREASED TO 2597 BILLION IN THE FOURTH QUARTER FROM 2763 BILLION IN THE THIRD QUARTER THESE FIGURES EXCLUDE MILITARY TRADE OF US DEFENSE AGENCIES AND REFLECT CERTAIN OTHER ADJUSTMENTS TO THE GOVERNMENT'S MONTHLY TRADE REPORTS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS 9303020118 930302 WHO'S NEWS CRAIG CORP CRAIG CORP LOS ANGELES S CRAIG TOMPKINS WAS NAMED PRESIDENT AND A DIRECTOR SUCCEEDING EDWARD L KANE WHO RESIGNED EFFECTIVE FEB 1 TO TAKE THE TOP POST AT ASMG OUTPATIENT SERVICES INC OF SAN DIEGO MR TOMPKINS 42 YEARS OLD PREVIOUSLY WAS A PARTNER AT THE LOS ANGELES LAW FIRM GIBSON DUNN & CRUTCHER HE WAS ALSO NAMED PRESIDENT AND A DIRECTOR OF READING CO A PHILADELPHIA REAL ESTATE CONCERN IN WHICH CRAIG OWNS A 47 STAKE CRAIG A DIVERSIFIED CONCERN ALSO OWNS A 50 STAKE IN THE COMMON STOCK OF STATER BROS HOLDINGS INC A SOUTHERN CALIFORNIA SUPERMARKET CHAIN 9303020117 930302 LETTERS TO THE EDITOR SHOULD WOMEN CARRY THE GREAT EQUALIZER I AM WRITING IN RESPONSE TO YOUR FEB 4 PAGEONE ARTICLE ARMED FORCE PAXTON QUIGLEY SHOWS HER WOMEN STUDENTS HOW TO SHOOT A MAN AS A SURVIVOR OF RAPE AT GUNPOINT I WAS EXTREMELY OFFENDED BOTH BY MS QUIGLEY'S EXPLOITATION OF WOMEN'S FEARS FOR PERSONAL PROFIT AND BY HER PERVERSION OF FEMINIST PRINCIPLES WITH THE IMPLICATION THAT HANDGUNS MAKE MEN AND WOMEN EQUAL FROM MY OWN EXPERIENCE UNLIKE THAT OF MS QUIGLEY'S FRIEND I KNOW THAT HAD I BEEN ARMED ONE PERSON WOULD HAVE BEEN DEAD AND MS QUIGLEY TO THE CONTRARY KILLING SOMEONE EVEN IN SELFDEFENSE IS NOT SEXY I ALSO KNOW THAT HAD MY ASSAILANT BEEN UNARMED THE RAPE WOULD NOT HAVE OCCURRED IT WAS HIS POSSESSION OF A HANDGUN THAT MADE US UNEQUAL I WAS AND AM PERFECTLY CAPABLE OF DEFENDING MYSELF AGAINST AN UNARMED MAN AND MOST WOMEN WITH TRAINING CAN ACHIEVE THE SAME CONFIDENCE WITHOUT HANDGUNS THE SOLUTION TO THE INCREASING RATE OF CRIMES AGAINST WOMEN REQUIRES DISARMING CRIMINALS NOT ARMING WOMEN INCREASING VIOLENCE IS NOT THE SOLUTION TO INCREASING VIOLENCE YOUR ARTICLE WAS A SAD COMMENTARY ON LIFE IN AMERICA RATHER THAN EMPOWERING WOMEN ARMING THEM WITH DEADLY FORCE WILL ONLY SERVE TO GET THEM KILLED MS QUIGLEY'S MOTIVES ARE SUSPECT AS SHE HUSTLES FEAR TO THE FEARFUL YOU RIGHTLY STATE THE STRONG PROBABILITY OF HAVING ONE'S OWN GUN USED ON ITS OWNER OR HER RELATIVES I ONLY WISH YOU HAD SAID THAT ON THE FRONT PAGE INSTEAD OF AT THE END OF THE STORY NOTHING SHORT OF TOUGH COMPREHENSIVE FEDERAL GUN CONTROL LAWS WILL SOLVE OUR PECULIAR PROBLEM WHY IS IT NEWSWORTHY WHEN WOMEN CHOOSE TO DEFEND THEMSELVES DO NOT WOMEN HAVE AS MUCH RIGHT TO DO SO AS MEN PERHAPS THEY SHOULD HAVE MORE OF A RIGHT TO DO SO CONSIDERING THE RATE AT WHICH THEY ARE ROUTINELY VICTIMIZED ALMOST ALWAYS BY MEN I FOUND YOUR ARTICLE PATRONIZING AND SENSATIONALIST YOUR TREATMENT OF MS QUIGLEY WAS BIASED WHAT OF HER BACKGROUND SO WHAT IF SHE HAS CHANGED HER NAME THIS ARTICLE IS CLEARLY WRITTEN FROM A MALE PERSPECTIVE I GUARANTEE THAT IF THE STORY HAD BEEN WRITTEN BY ONE OF YOUR FEMALE REPORTERS THE FOCUS OF THE STORY WOULD HAVE BEEN DIFFERENT PAXTON QUIGLEY WAS THE CHARACTER IN THE 1968 MOVIE THREE IN THE ATTIC STARRING CHRISTOPHER JONES AND YVETTE MIMIEUX I FIND IT IRONIC THAT JUDY CARNOY CHOSE TO ADOPT THIS MONIKER THE MOVIE PORTRAYED A YOUTH PAXTON QUIGLEY WHO POSSESSED SO MUCH STYLE THAT HE WAS ABLE TO MAINTAIN THREE INTIMATE RELATIONSHIPS AT ONCE UPON DISCOVERY HIS THREE SIGNIFICANT OTHERS PROCEEDED TO IMPRISON HIM IN THE ATTIC AND OVER THE COURSE OF THE MOVIE DRAIN HIM OF HIS POTENCY 9303020116 930302 RAWSTEEL PRODUCTION ROSE 37 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 37 LAST WEEK TO 1866000 TONS FROM 1799000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 42 FROM THE 1791000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 849 OF ITS CAPABILITY LAST WEEK COMPARED WITH 818 THE PREVIOUS WEEK AND 814 A YEAR AGO THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9303020115 930302 MARKETING & MEDIA PEPSI SAYS IT DEVELOPED A ONECALORIE SUGARFREE DRINK WITH MORE COLA FLAVOR BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC ARMED WITH A NEW SWEETENER THINKS IT HAS CLOSED THE TASTE GAP BETWEEN REGULAR AND DIET COLAS PEPSI SAID IT DEVELOPED PEPSI MAX A ONECALORIE SUGARFREE DRINK AND WILL BEGIN TESTING IT NEXT MONTH IN THE UNITED KINGDOM AND ITALY THE LAUNCH FOLLOWS COCACOLA CO'S RECENT INTRODUCTION OF TAB CLEAR A COLORLESS VERSION OF ITS TAB DIET COLA IN PARTS OF THE US AND THE UK TAB CLEAR IS SWEETENED WITH ASPARTAME BETTER KNOWN AS NUTRASWEET DEVELOPED SPECIFICALLY FOR INTERNATIONAL MARKETS PEPSI MAX USES A BLEND OF ASPARTAME AND ACESULFAMEK AN ARTIFICIAL SWEETENER NOT YET APPROVED FOR THE US THE BLENDING OF INNOVATIVE NEW SWEETENERS IS THE DIRECTION OF THE FUTURE FOR DIET DRINKS BEVERAGE EXECUTIVES HAVE SAID PEPSI DIDN'T RULE OUT A US VERSION OF PEPSI MAX WHICH WOULD HINGE ON REGULATORY APPROVAL FOR THE NEW SWEETENER IT'S BEEN THE DREAM OF COLA MAKERS TO REPLICATE THE TASTE OF REGULAR COLA WITHOUT SUGAR SAID DONALD HOLDSWORTH VICE PRESIDENT MARKETING AND SALES FOR PEPSICOLA INTERNATIONAL WE THINK WE HAVE THE HOLY GRAIL IT DOES TASTE MORE LIKE PEPSI THAN DIET PEPSI SAID JESSE MEYERS WHO HAS TRIED PEPSI MAX AND IS PUBLISHER OF BEVERAGE DIGEST NEWSLETTER THE PEPSI MAX TEST EVENTUALLY COULD MAKE BIG WAVES IN THE 128 BILLION DIET SOFTDRINK MARKET IN THE US AFTER NEARLY A DECADE OF DOUBLEDIGIT SALES INCREASES THE DIET BEVERAGE CATEGORY IS IN THE DOLDRUMS SHOWING ITS FIRST ANNUAL MARKETSHARE DROP LAST YEAR TO 294 OF TOTAL SOFTDRINK SALES FROM 298 IN AN ATTEMPT TO REIGNITE INTEREST IN DIET COLAS BOTH COCACOLA AND PEPSI ARE EXPECTED TO BEGIN BLENDING SWEETENERS ALLOWING THEM TO TINKER WITH FORMULATIONS TO PROVIDE THE BEST PRICE SHELF STABILITY AND TASTE A REFORMULATED DIET PEPSI FOR EXAMPLE COULD START NEW TASTE SUPERIORITY CLAIMS AGAINST DIET COKE OR VICE VERSA ALTHOUGH PEPSI AND COKE HAVE CONTRACTS TO BUY ASPARTAME FROM MONSANTO CO'S NUTRASWEET CO UNIT BOTH ARE LICKING THEIR CHOPS AS THE FOOD AND DRUG ADMINISTRATION REVIEWS APPLICATIONS FOR NEW ARTIFICIAL SWEETENERS FOR USE IN CARBONATED DRINKS AMONG THEM ARE JOHNSON & JOHNSON'S SUCRALOSE AND ACESULFAMEK MADE BY HOECHST CELANESE A UNIT OF GERMANY'S HOECHST AG AND AVAILABLE IN ABOUT 25 COUNTRIES OUTSIDE THE US USING NEW SWEETENERS TO DIFFERENTIATE DIET COLA TASTES MORE SHARPLY AND TO SPARK CONSUMER INTEREST IS THE ONLY WAY TO SHAKE UP THE CATEGORY CONTENDS TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGE CONSULTING COMPANY BUT PEPSI MAX GREW OUT OF A MARKETING PROBLEM FAR FROM US SHORES MANY CONSUMERS ABROAD PEPSI'S RESEARCH SHOWED WERE RELUCTANT TO TRY DIET COLAS AND WHEN THEY DID THEY FREQUENTLY DIDN'T LIKE THEM THE DOMINANT AND MORE VISIBLE COMPANY IN EUROPE COCACOLA HAS FOUND THIS LESS PROBLEMATIC LAST SUMMER IT SAID SALES OF DIET COKE ALONE SURPASSED THOSE OF REGULAR PEPSI ON THE CONTINENT BUT WITH DIET DRINKS ACCOUNTING FOR LESS THAN 4 OF ALL INTERNATIONAL SOFT DRINKS SALES PEPSI SAID THERE ARE MANY MORE PEOPLE WHO HAVE YET TO BE WON OVER SO PEPSI AIMING TO CAPTURE COLA DRINKERS 16 TO 29 SET OUT TO CREATE A DIET DRINK MORE CLOSELY RESEMBLING REGULAR PEPSI WITH THE NEW BLEND OF SWEETENERS THE THREEYEAR PROJECT ALLOWED THE COMPANY TO CRAFT PEPSI MAX WITH A MORE INTENSE COLA FLAVOR THAN IT COULD IN PREVIOUS DIET COLAS THE NEW ADVERTISING USING THE LINE MAXIMUM TASTE NO SUGAR IS DESIGNED TO REASSURE THE RELUCTANT SAYS MR HOLDSWORTH YOU'D NEVER MISTAKE PEPSI MAX AS A DIET PEPSI BOTH COKE AND PEPSI HAVE ENCOUNTERED ONE OBSTACLE IN SELLING THEIR DIET COLAS OVERSEASCONSUMERS CONNOTE THE WORD DIET WITH MEDICINAL DIET COLAS AT LEAST INITIALLY ARE OFTEN VIEWED AS THE PREFERRED DRINKS FOR PEOPLE WITH DIABETES OR SEVERE WEIGHT PROBLEMS TO BLUNT THAT PERCEPTION THE COLA COMPANIES HAVE AVOIDED THE WORD DIET IN LAUNCHING LOWCALORIE DRINKS OVERSEAS CALLING THEM INSTEAD COCACOLA LIGHT OR PEPSI LIGHT 9303020114 930302 MANVILLE RECEIVES IRS REFUND DENVER MANVILLE CORP SAID IT RECEIVED A 314 MILLION REFUND FROM THE INTERNAL REVENUE SERVICE WHICH IT WILL RECOGNIZE IN EARNINGS IN THE FIRST QUARTER MANVILLE SAID THE REFUND REFLECTS EXCESS TAXES IT PAID AND RESULTS FROM RECALCULATING THE ADDON MINIMUM TAX FOR THE YEARS 1977 THROUGH 1986 IN MAY 1992 AS THE RESULT OF A LAWSUIT BROUGHT BY ANOTHER BUSINESS THE IRS RETROACTIVELY CHANGED ITS METHOD OF CALCULATING THE ADDON MINIMUM TAX MANVILLE APPLIED FOR A REFUND BASED ON THE NEW REGULATIONS FOR ITS YEAREARLIER FIRST QUARTER THE BUILDING CONSTRUCTION AND PAPERPRODUCTS MAKER REPORTED NET INCOME OF 93 MILLION ON 4969 MILLION IN SALES 9303020113 930302 FORMER SPARTANICS OFFICER IS CLEARED ON FRAUD COUNTS CHICAGO A FEDERAL JURY HERE CLEARED DAVID C STALLMAN FORMER SECRETARYTREASURER OF DEFENSE CONTRACTOR SPARTANICS LTD OF CHARGES HE DEFRAUDED THE GOVERNMENT MR STALLMAN 63 YEARS OLD WAS IN AUGUST INDICTED BY A FEDERAL GRAND JURY FOR ALLEGEDLY INFLATING DURING CONTRACT TALKS WITH THE GOVERNMENT SPARTANICS' COSTS OF MAKING A MARKSMANSHIPTRAINING DEVICE KNOWN AS THE WEAPONEER HE RESIGNED SHORTLY AFTERWARD LAST WEEK THE 12MEMBER JURY RETURNED A FINDING OF NOT GUILTY ON ALL 17 COUNTS CLOSELY HELD SPARTANICS WHICH IS SEEKING FURTHER GOVERNMENT CONTRACTS TO PRODUCE THE DEVICE HADN'T BEEN CRIMINALLY CHARGED BUT THE ROLLING MEADOWS ILL COMPANY PAID THE DEFENSE DEPARTMENT 500000 IN NOVEMBER TO SETTLE A CIVIL COMPLAINT WHICH MADE THE SAME ESSENTIAL ASSERTIONS WE DID SO EVEN THOUGH THE COMPANY CONTINUES TO DENY THE ALLEGATIONS BECAUSE THE COST OF THE LITIGATION EXCEEDED THE COST OF THE SETTLEMENT SAID WILLIAM N KNOTTS PRESIDENT AND CHIEF OPERATING OFFICER HE NOTED THAT THE CONSENTDECREE SETTLEMENT THE COMPANY REACHED DIDN'T INCLUDE ANY ADMISSION OF WRONGDOING 9303020112 930302 EPA DECLINES TO REVISE ITS STANDARD FOR SMOG WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY AFTER CONDUCTING A COURTORDERED REVIEW OF ITS AIRQUALITY STANDARDS DECLINED TO REVISE ITS STANDARD FOR SMOG THE AGENCY RULING ANNOUNCED YESTERDAY TO ACCOMMODATE A COURT DEADLINE BACKS UP A PRELIMINARY DECISION MADE LAST AUGUST BY THE BUSH ADMINISTRATION NOT TO ALTER THE NATIONAL STANDARD FOR GROUNDLEVEL OZONE COMMONLY KNOWN AS SMOG THE EPA'S CURRENT STANDARD FOR SMOG IS 012 PARTS PER MILLION AN AMOUNT THAT SOME ENVIRONMENTALISTS CONTEND IS TOO HIGH FOR CONTINUOUS EXPOSURE OVER SEVERAL HOURS AND CAN LEAD TO WHEEZING COUGHING AND PANTING RON WHITE DIRECTOR OF ENVIRONMENTAL HEALTH FOR THE AMERICAN LUNG ASSOCIATION SAID IT WAS VERY DISAPPOINTED THAT THE EPA DECIDED TO SUPPORT A BAD DECISION BY THE PREVIOUS ADMINISTRATION THE LUNG GROUP FILED THE 1991 LAWSUIT THAT ULTIMATELY COMPELLED THE EPA TO REVIEW ITS SMOG STANDARDS ALTHOUGH 1977 AMENDMENTS TO THE CLEAN AIR ACT REQUIRE THE EPA TO CONDUCT SUCH A REVIEW EVERY FIVE YEARS THE AGENCY HADN'T DONE SO FOR MORE THAN A DECADE THE CURRENT SMOG STANDARD WAS ADOPTED IN 1979 AN EPA STATEMENT SAID THE DECISION NOT TO REVISE ITS SMOG STANDARD WAS BASED ON STUDIES PUBLISHED UP TO EARLY 1989 WHICH DO NOT PROVIDE A SUFFICIENT BASIS FOR REVISING THE STANDARDS AT THIS TIME THE AGENCY SAID IT DIDN'T REVIEW MORERECENT STUDIES BECAUSE THEY HADN'T YET UNDERGONE RIGOROUS ASSESSMENT 9303020111 930302 WORLD MARKETS TOKYO STOCKS SLIP IN EXTREMELY THIN TRADING GERMAN RATE SCENARIO FUELS EUROPEAN BOURSES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLIPPED BROADLY MONDAY IN THIN TECHNICAL TRADING LED BY THE FUTURES MARKET LONDON PRICES CLIMBED AS HOPES FOR A CUT IN GERMAN INTEREST RATES PROPELLED EUROPEAN BOURSES HIGHER FRANKFURT EQUITIES RALLIED TO A NEW 1993 HIGH ON THE RATE SPECULATION IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4596 POINTS FRIDAY FELL 7375 TO 1687960 ON TUESDAY IN TOKYO THE NIKKEI EASED 2237 POINTS TO CLOSE THE MORNING SESSION AT 1685723 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES THE LOWEST LEVEL SINCE JAN 18 AND DOWN SHARPLY FROM 2668 MILLION SHARES FRIDAY LOSERS TROUNCED GAINERS 664265 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ADDED 601 POINTS FRIDAY SOFTENED 796 TO 127625 TELECOMMUNICATIONS AND RELATED ISSUES RALLIED ON TALK OF STEPPEDUP JAPANESE GOVERNMENT INVESTMENT IN THAT SECTOR'S INFRASTRUCTURE PROVIDING A FRESH INCENTIVE FOR A MARKET THAT HADN'T SEEN ONE IN A WHILE WIRE AND CABLE CONCERNS ALSO ADVANCED ON THE SPECULATION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 146 POINTS TO 28826 NEAR THE INTRADAY HIGH OF 28849 ON THE FIRST DAY OF A NEW TWOWEEK TRADING ACCOUNT THE FT 30STOCK INDEX ADVANCED 171 POINTS TO 22255 VOLUME WAS 5351 MILLION SHARES COMPARED WITH 6712 MILLION SHARES IN THE PREVIOUS SESSION THE 100STOCK INDEX WOULD HAVE ENDED ALMOST EIGHT POINTS HIGHER BUT FOR A STRING OF STOCKS THAT BEGAN THE SESSION TRADING EXDIVIDEND LAST WEEKEND'S MEETING OF G7 OFFICIALS CONTINUED TO FUEL LONDON INVESTORS' HOPES THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WILL CUT KEY LENDING RATES WHEN ITS POLICYMAKING COUNCIL MEETS THURSDAY BUNDESBANK PRESIDENT HELMUT SCHLESINGER SPEAKING AFTER THE G7 MEETING SIGNALED A FURTHER RELAXATION OF GERMAN CREDIT POLICY WHEN HE SAID THAT A CUT STARTING YESTERDAY IN THE RESERVES THAT GERMAN BANKS MUST HOLD IN NONINTERESTBEARING ACCOUNTS AT THE BUNDESBANK SHOULD HERALD A FALL IN GERMAN MONEY MARKET RATES A CUT IN GERMAN RATES WOULD MAKE IT EASIER FOR BRITAIN'S GOVERNMENT TO SANCTION FURTHER CUTS IN THAT COUNTRY'S BASE LENDING RATE NOW AT 6 IN FRANKFURT THE DAX 30STOCK INDEX WHICH RAN UP 2544 POINTS FRIDAY ADVANCED 1660 TO 170095 AS HOPES INTENSIFIED FOR A CUT IN GERMAN INTEREST RATES ON THURSDAY GERMAN COMPANIES WOULD BENEFIT FROM A RATE REDUCTION BECAUSE IT WOULD STIMULATE CAPITAL INVESTMENT AND THE EFFECT WOULD SPILL ACROSS THE CONTINENT LENDING HELP TO WEAKENED ECONOMIES FRANKFURT BLUE CHIPS AND FINANCIAL SHARES BENEFITED MOST IN MONDAY'S GAINS THE GERMAN RATE SCENARIO FUELED BIG GAINS FOR STOCKS IN PARIS MADRID STOCKHOLM AND ZURICH MILAN EQUITIES RALLIED ON EXPECTED APPROVAL OF ITALIAN PENSION FUNDS WHICH WOULD INTRODUCE INSTITUTIONAL INVESTORS TO THE MARKET RUMORS OF AN ALLIANCE IN THE AUTO SECTOR AND A SHARP INCREASE IN JANUARY EXPORTS AMSTERDAM STOCKS BUCKED THE TREND RETREATING LATE IN THE SESSION TO END MIXED IN QUIET TRADING SYDNEY PRICES SHOT TO THEIR HIGHEST LEVEL SINCE LAST JULY ON NEWS OF A NARROWERTHANXPECTED AUSTRALIAN CURRENTACCOUNT DEFICIT AND EXPECTATIONS OF AN INTERESTRATE CUT AS EARLY AS THIS MONTH MANUFACTURING MINING AND RETAILING STOCKS RALLIED AND BANKING SHARES POSTED STRONG GAINS PARTLY ON SPECULATION THAT AN EXPECTED CHANGE IN GOVERNMENT AT AUSTRALIA'S MARCH 13 NATIONAL ELECTIONS WILL INCREASE CHANCES OF BANK MERGERS HONG KONG SHARES CONTINUED TO MOVE HIGHER IN THE WAKE OF A POSTPONEMENT OF A LEGISLATIVE VOTE ON THE BRITISH COLONY'S POLITICAL REFORM PROPOSALS WHICH SPARKED HOPES THAT SINOBRITISH TALKS WOULD RESUME SOON SINGAPORE STOCKS WERE LOWER ON BROAD PROFITTAKING THOUGH THEY DID RECOVER FROM INTRADAY LOWS WITH THE MARKET SUPPORTED BY FISCAL INCENTIVES AND TAX BREAKS PROPOSED BY THE FINANCE MINISTRY IN LAST FRIDAY'S BUDGET STATEMENT TAIPEI STOCKS RALLIED TO THE HIGHEST FINISH SINCE JUNE 30 ON A POSITIVE OUTLOOK FOR CORPORATE EARNINGS AND DIVIDENDS THE MARKET HAS SOARED 44 SINCE EARLY JANUARY BUT MANILA EQUITIES STUMBLED IN A CORRECTION FOLLOWING AN 8 RISE IN THE PAST TWO WEEKS AMONG CORPORATE DEVELOPMENTS IN TOKYO NEC DROPPED 10 YEN OR 16 TO 628 YEN 535 THE BIG MAKER OF SEMICONDUCTORS AND COMPUTERS SAID IT EXPECTS A CONSOLIDATED NET LOSS FOR THE YEAR ENDING MARCH 31 OF 43 BILLION YEN 3665 MILLION OR MORE THAN FOUR TIMES GREATER THAN ITS NOVEMBER FORECAST OF A 9 BILLIONYEN DEFICIT IN LONDON TATE & LYLE DROPPED 3 PENCE TO 434 PENCE 621 THE SUGAR COMPANY UNVEILED MANAGEMENT CHANGES INCLUDING THE DEPARTURE OF THE CHIEF EXECUTIVE STEPHEN BROWN WHO WAS SUCCEEDED BY A FORMER CEO NEIL SHAW WHO WILL SWITCH TO EXECUTIVE CHAIRMAN FROM NONEXECUTIVE CHAIRMAN THE FINANCE DIRECTOR PAUL LEWIS WAS NAMED TO THE ADDED POST OF DEPUTY CHAIRMAN IN MADRID REPSOL GAINED 25 PESETAS TO 2765 PESETAS 2349 THE SPANISH STATERUN OIL AND NATURAL GAS CONCERN'S 1992 CONSOLIDATED PROFIT ROSE 18 TO 7143 BILLION PESETAS 6068 MILLION FROM A YEAR EARLIER A FAVORABLE PERFORMANCE AS THE GLOBAL OIL SECTOR'S PROFITS PLUMMETED TELEFONICA ADVANCED 35 OR 28 TO 1300 SPAIN'S STATERUN TELECOMMUNICATIONS MONOPOLY SAID 1992 CONSOLIDATED PROFIT DROPPED 24 TO 795 BILLION PESETAS BUT OPERATING PROFIT ROSE 75 TO 32824 BILLION PESETAS 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 9303020110 930302 REVIEW & OUTLOOK EDITORIAL ASIDES JUST DO NOTHING THE WHITE HOUSE LIKES TO TALK ABOUT THE SUPPORT THE CLINTON ECONOMIC PROGRAM IS GETTING FROM FOREIGN FINANCE MINISTERS BUT THERE IS AT LEAST ONE DISSENTING VOICE FROM NEW ZEALAND WHICH IS ENJOYING A ROBUST ECONOMIC RECOVERY AFTER IMPLEMENTING SOME TOUGH FREEMARKET REFORMS FINANCE MINISTER RUTH RICHARDSON THE MARGARET THATCHER OF THE SOUTH PACIFIC CALLS THE CLINTON PROGRAM LETHAL IN AN UNINTELLIGENT WAY HE'S GOING TO BLUNDER SHE EXPLAINS IT IS SHEER FOLLY IT IS COUNTERPRODUCTIVE TO IMAGINE THAT THE ANSWER LIES IN HIGHER TAXES IT'S IMPORTANT FOR WORLD GROWTH THAT ECONOMIC RECOVERY BE ALLOWED TO TAKE HOLD CLINTON SHOULD IN AN INTELLIGENT WAY BASICALLY DO NOTHING 9303020109 930302 NOTABLE & QUOTABLE A TERRORIST EXPLAINING HOW HE SELECTS A TARGET IN JOSEPH CONRAD'S 1907 NOVEL THE SECRET AGENT THIS IS WHAT YOU SHOULD TRY FOR AN ATTEMPT UPON A CROWNED HEAD OR ON A PRESIDENT IS SENSATIONAL ENOUGH IN A WAY BUT NOT SO MUCH AS IT USED TO BE IT HAS ENTERED INTO THE GENERAL CONCEPTION OF THE EXISTENCE OF ALL CHIEFS OF STATE IT'S ALMOST CONVENTIONAL ESPECIALLY SINCE SO MANY PRESIDENTS HAVE BEEN ASSASSINATED NOW LET US TAKE AN OUTRAGE UPON SAY A CHURCH HORRIBLE ENOUGH AT FIRST SIGHT NO DOUBT AND YET NOT SO EFFECTIVE AS A PERSON OF AN ORDINARY MIND MIGHT THINK NO MATTER HOW REVOLUTIONARY AND ANARCHIST IN INCEPTION THERE WOULD BE FOOLS ENOUGH TO GIVE SUCH AN OUTRAGE THE CHARACTER OF A RELIGIOUS MANIFESTATION AND THAT WOULD DETRACT FROM THE ESPECIAL ALARMING SIGNIFICANCE WE WISH TO GIVE TO THE ACT A MURDEROUS ATTEMPT ON A RESTAURANT OR A THEATRE WOULD SUFFER IN THE SAME WAY FROM THE SUGGESTION OF NONPOLITICAL PASSION THE EXASPERATION OF A HUNGRY MAN AN ACT OF SOCIAL REVENGE A BOMB OUTRAGE TO HAVE ANY INFLUENCE ON PUBLIC OPINION NOW MUST GO BEYOND THE INTENTION OF VENGEANCE OR TERRORISM IT MUST BE PURELY DESTRUCTIVE IT MUST BE THAT AND ONLY THAT 9303020108 930302 INTERNATIONAL GERMANY WILL TAKE BACK PESTICIDES SENT TO ROMANIA BERLIN AP GERMANY SAID IT WILL TAKE BACK 468 TONS OF DEADLY PESTICIDES ILLEGALLY DUMPED IN ROMANIA LAST YEAR ENVIRONMENTALISTS CLAIM THE AMOUNT IS A MINUSCULE PORTION OF THE TOXIC MATERIALS THAT WASTE HAULERS IN GERMANY HAVE SHIPPED TO POORER COUNTRIES ESPECIALLY IN EASTERN EUROPE GERMANY FACES A WASTE DISPOSAL CRISIS BECAUSE OF THE POISON CHEMICALS IT INHERITED FROM THE FORMER EAST GERMANY GERMANY SPENT 910 MILLION LAST YEAR ON CLEANUP GERMAN ENVIRONMENT MINISTER KLAUS TOEPFER SAID A GROUP OF ENVIRONMENTAL COMPANIES WILL GO TO THE ROMANIA'S SIBIU REGION ON MONDAY TO BEGIN REMOVING THE PESTICIDES THE 2 MILLION OPERATION IS EXPECTED TO TAKE A MONTH THE PESTICIDES WILL BE BROUGHT BACK BY TRAIN MOST OF THE PESTICIDES WERE SHIPPED TO ROMANIA BY JUERGEN HOLZ A DRESDENBASED WASTE HAULER AND FORMER SECRET POLICE OPERATIVE THE ROMANIAN EMBASSY IN BONN SAYS IT GAVE MR HOLZ A SPECIAL TRANSIT PERMIT BECAUSE HE CLAIMED HE WAS SHIPPING HUMANITARIAN AID TO ROMANIA THE MATERIAL WAS TRUCKED THROUGH CZECHOSLOVAKIA FROM JANUARY 1992 UNTIL MIDMAY WHEN THE ENVIRONMENTAL GROUP GREENPEACE GOT WIND OF IT IT BLOCKED THREE TRUCKS AT THE BORDER AND THEN ALERTED OFFICIALS 9303020107 930302 DIVIDEND INCREASES IN FEBRUARY REACHED A FOURYEAR HIGH NEW YORK MORE COMPANIES BOOSTED THEIR DIVIDENDS LAST MONTH THAN ANY MONTH SINCE FEBRUARY 1989 STANDARD & POOR'S CORP REPORTED THE NUMBER OF DIVIDEND INCREASES TOTALED 173 LAST MONTH COMPARED WITH 146 INCREASES IN JANUARY AND 129 INCREASES LAST FEBRUARY IN FEBRUARY 1989 200 DIVIDEND BOOSTS WERE RECORDED THE FOURYEAR HIGH IN THE DATA MIGHT REFLECT CONFIDENCE IN PRESIDENT CLINTON'S ECONOMIC PROGRAM AS WELL AS GENERALLY HIGH HOPES ABOUT THE ECONOMY THIS YEAR SAID ARNOLD KAUFMAN EDITOR OF STANDARD & POOR'S DAILY DIVIDEND RECORD THE ECONOMY GREW AT A GREATER RATE IN THE FOURTH QUARTER THAN HAD BEEN ANTICIPATED MR KAUFMAN SAID REFERRING TO THE COMMERCE DEPARTMENT'S LATEST ESTIMATE THAT THE NATION'S GROSS DOMESTIC PRODUCT SURGED AT A 48 RATE IN THE FINAL THREE MONTHS OF LAST YEAR CORPORATE MANAGERS ARE CONFIDENT EARNINGS WILL GROW THIS YEAR HE ADDED MR KAUFMAN ALSO SAID THAT WHILE CONSUMER CONFIDENCE HAS FALLEN LATELY CONFIDENCE WAS STILL HIGH WHEN THE FEBRUARY DIVIDEND DECISIONS WERE BEING MADE MR KAUFMAN NOTED THAT THE STOCK MARKET DESPERATELY NEEDS DIVIDEND INCREASES IN ORDER TO SUSTAIN SHARE PRICES AT CURRENT LEVELS THE DIVIDEND YIELD OF THE S&P 500 INDEX HAS DROPPED TO AROUND 28 NEAR LEVELS LAST SEEN IN 1987 AND 1972 BEFORE MAJOR MARKET REVERSALS MEANWHILE HE SAID THE NUMBER OF NEGATIVE DIVIDEND ACTIONS INCLUDING DECREASES AND OMISSIONS HAS STABILIZED AROUND A CORE LEVEL WHILE 99 COMPANIES LOWERED OR OMITTED DIVIDENDS IN THE FIRST TWO MONTHS OF 1991 45 DID SO IN THE FIRST TWO MONTHS OF LAST YEAR AND ONLY 43 DID SO THIS JANUARY AND FEBRUARY 9303020106 930302 COAL WORKERS EXPAND STRIKE TO TARGET EFFICIENT MINES OF FIVE OTHER PRODUCERS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE UNITED MINE WORKERS UNION EXPANDED ITS MONTHLONG STRIKE BEYOND PEABODY HOLDING CO TARGETING HIGHLY PRODUCTIVE MINES OF FIVE OTHER MAJOR PRODUCERS THE STRIKE SPREAD TO SELECT MINES OPERATED BY CONSOL ENERGY INC WHICH IS OWNED BY DU PONT CO AND RHEINBRAUN AG OF GERMANY ARCH MINERAL CORP OWNED BY ASHLAND OIL INC AND THE HUNT FAMILY OF TEXAS ROCHESTER & PITTSBURGH COAL CO ZIEGLER COAL HOLDING CO AND FREEMAN ENERGY CORP A UNIT OF GENERAL DYNAMICS CORP THE LATEST ACTION WHICH INCLUDES A COAL CLEANING PLANT AND 10 MINES IN ILLINOIS PENNSYLVANIA AND WEST VIRGINIA INVOLVES 1700 WORKERS THE UNION SAID THE UMW ALREADY WAS ON STRIKE AGAINST TWO UNITS OF ST LOUISBASED PEABODY INVOLVING 7500 WORKERS ACCORDING TO THE UNION ALTHOUGH THE COMPANY A UNIT OF BRITAIN'S HANSON PLC ESTIMATES ABOUT 5000 WORKERS ARE AFFECTED I THINK IT'S A CONTROLLED RESPONSE SAID RALPH BARBARO OF ENERGY VENTURES ANALYSIS INC AN ARLINGTON VA CONSULTING FIRM IT REMINDS THE COMPANIES THAT THEY THE UNION CAN DO THIS AND IT DOESN'T PLAY THE UNION'S WHOLE HAND THE EXPANDED STRIKE IS AIMED AT THE COMPANIES' MOST PRODUCTIVE AND LOWCOST MINES IT PUTS A MINIMUM AMOUNT OF MINE WORKERS OUT OF WORK BUT HAS A MATERIAL PROFIT IMPACT TO THE PRODUCER SAID RAFAEL A VILLAGRAN AN ANALYST WITH LEHMAN BROTHERS MOREOVER CUSTOMERS MAINLY ELECTRIC UTILITIES WERE LIKELY TO TURN TO THESE MINES ONCE THEIR OWN STOCKPILES WERE DEPLETED TO REPLACE COAL THEY ONCE RECEIVED FROM STRIKEBOUND PEABODY MINES ACCORDING TO RESOURCE DATA INTERNATIONAL A DENVER CONSULTING FIRM THAT TRACKS ENERGY ISSUES THE UMW WENT ON STRIKE AGAINST PEABODY'S EASTERN ASSOCIATED COAL CORP AND PEABODY COAL CO ON FEB 2 AFTER THE UNION AND THE BITUMINOUS COAL OPERATORS ASSOCIATION FAILED TO REACH A NEW LABOR PACT BEFORE THE EXPIRATION OF THE NATIONAL BITUMINOUS WAGE AGREEMENT ON FEB 1 THE BIGGEST ISSUE IN THE STRIKE INVOLVES THE UMW'S DEMAND THAT THE HOLDING COMPANIES AND THUS SOME OF THEIR NONUNION MINES BE INCLUDED IN NEGOTIATIONS THE UNION CONTENDS THAT BCOA MEMBERS ARE INCLUDING ONLY CERTAIN SUBSIDIARY COMPANIES IN TALKS AND ARE OPENING NONUNION MINES THROUGH OTHER COMPANIES UNDER THE CORPORATE UMBRELLA THE BCOA HAS AGREED TO DISCUSS EMPLOYMENT OPPORTUNITIES AT NONUNION MINES BUT IT WON'T AUTOMATICALLY GRANT UNION REPRESENTATION TO WORKERS AT THOSE MINES THE UMW IS FIGHTING TO GET INFORMATION ON THESE NONUNION MINES 9303020105 930302 LEISURE & ARTS ON DISK THE FRENCH BAROQUE IN VOGUE BY MARK SWED SUDDENLY LAST SUMMER AN OBSCURE CATALAN MASTER OF THE 18THCENTURY BASS VIOL JORDI SAVALL PUT OUT A RECORDING OF THE EQUALLY UNKNOWN FRENCH BAROQUE COMPOSER MARIN MARAIS IT BECAME THE NO 2 COMPACT DISK IN ALL OF FRANCE TOPPED ONLY BY THE LATEST PRINCE ALBUM BY NOVEMBER THE SAVALL/MARAIS CRAZE HAD CROSSED THE ATLANTIC AND MR SAVALL'S RECORDING OUTSOLD MADONNA'S EROTICA AT THE TOWER RECORDS BRANCH NEXT TO LINCOLN CENTER IN MANHATTAN AND LATELY MR SAVALL'S VIRTUOUS WORK WITH THE PREVIOUSLY UNGLAMOROUS BASS VIOL AN ANCESTOR OF THE CELLO HAS BEEN THE NO 1 CD IN A NUMBER OF RECORD STORES AROUND THE COUNTRY THERE IS OF COURSE A SIMPLE EXPLANATION THE DISK HAPPENS TO BE THE SOUND TRACK FOR THE POPULAR FRENCH FILM TOUS LES MATINS DU MONDE ASTREE WHICH ROMANTICIZES THE LIFE OF MARAIS BUT HOWEVER MUCH THE FILM MANAGES TO GIVE FRENCH BAROQUE MUSIC A ROMANTIC CONTEXT IT NEVER HAD BEFORE THE PHENOMENON IS NONETHELESS STARTLING ESPECIALLY FOR MR SAVALL WHO HAS BECOME A CELEBRITY IN FRANCE EVEN IF I AM CONVINCED FROM 25 YEARS OF WORKING WITH MUSIC BY MARAIS THAT IT IS REALLY VERY NICE MUSIC MR SAVALL SAID RECENTLY I NEVER WOULD HAVE THOUGHT THINGS COULD WORK OUT LIKE THIS LIKE ANY POPULAR ENTHUSIASM THE MARAIS BOOMLET RESTS ON SOMETHING MORE THAN PURE PUBLICITY OR EVEN THE CONNECTION WITH A FILM THAT AFTER ALL IS NO BLOCKBUSTER AND HAS PUT MANY A SERIOUS ADULT TO SLEEP IN FACT PEOPLE SEEM TO LIKE MR SAVALL'S MUSIC FOR ITSELF BECAUSE THE FRENCH BAROQUE WAS IN FACT A TERRIFICALLY INTERESTING PERIOD IN MUSIC AND ONE THAT HAS RELEVANCE TO OUR PRESENT CULTURE BUT ONLY NOW PROBABLY FOR THE FIRST TIME SINCE THE EARLY 18TH CENTURY ARE WE ACTUALLY ABLE TO APPRECIATE THE MUSIC IT IS A MUSIC OF COLOR SENSUALITY SURPRISING HARMONIES AND UNPREDICTABLE MELODIC PHRASING BUT IT NEVER WORKED WELL ON MODERN INSTRUMENTS UNLIKE THE MORE CONTRAPUNTAL BAROQUE MUSIC OF BACH HANDEL OR VIVALDI WHICH DOES MARAIS WHEN PERFORMED ON THE MUCH MORE RESONANT MODERN CELLO INSTEAD OF THE LEANSOUNDING LITHE OLD BASS VIOL SOUNDS LUMPY BUT SUCH SPECIALIST PERFORMERS AS MR SAVALL HAVE FINALLY DEVELOPED THE KIND OF FLUENCY ON PERIOD INSTRUMENTS THAT IS NEEDED TO MAKE THE FRENCH BAROQUE COME BACK TO LIFE RECORDINGS ARE THE BEST WAY FOR MOST PEOPLE TO HEAR THIS MUSIC BECAUSE THE PERIOD INSTRUMENTS WHICH WERE DESIGNED FOR SMALL ACOUSTIC SPACES SIMPLY DON'T MAKE ENOUGH SOUND FOR THEIR COLORISTIC PROPERTIES TO BE APPRECIATED IN LARGE DRY MODERN CONCERT HALLS MOREOVER MUCH OF THIS REPERTOIRE IS NOW BECOMING READILY AVAILABLE IN WINNING PERFORMANCES ON CD WITH NEW RELEASES COMING OUT ALL THE TIME THE MAIN REVELATION OF THESE RECORDINGS AND OF THE FRENCH BAROQUE REVIVAL IN GENERAL IS THAT MANY OF THESE COMPOSERS WHO IN THE PAST WERE ONLY NAMES IN TEXTBOOKS WROTE VITAL MUSIC ANYONE FOR INSTANCE WHO WANTS TO EXPLORE MARAIS FURTHER CAN TURN TO MR SAVALL'S FIVE MARAIS CDS ON ASTREE EACH CONTAINING A SAMPLING FROM ONE OF THE COMPOSER'S FIVE BOOKS OF PIECES FOR THE VIOL THE SECOND AND FOURTH CONTAIN THE MOST CHARACTERFUL PIECES BUT ALL ARE WORTHWHILE AND MR SAVALL IS EVEN MORE PERSUASIVE HERE THAN HE IS ON THE SOUND TRACK WHERE HE TENDS TO OVEREMOTE TO FIT THE MOVIE MARAIS'S OPERA ALCIONE WHICH WAS ONCE HIS MOST FAMOUS WORK IS ALSO FINALLY OUT ON CD IN A SPLENDID PERFORMANCE UNDER THE DIRECTION OF MARC MINKOWSKI FOR ERATO THE OPERA IS PARTICULARLY APPEALING FOR THE WAY IT SHOWS MARAIS'S MASTERFUL USE OF THE INSTRUMENTAL COLOR IN THE ORCHESTRA IT WAS FAMOUS IN ITS DAY FOR A STORM SCENE THAT STILL DAZZLES ON CD IN ADDITION THERE ARE NEW RECORDINGS OF TWO ALMOST EXACT CONTEMPORARIES OF MARAIS ANTOINE FORQUERAY AND MICHEL PIGNOLET DE MONTECLAIR GUSTAV LEONHARDT THE HARPSICHORDIST WHO WAS A PIONEER IN PERIODPRACTICE BACH AND WHO ONCE EPITOMIZED THE MOVEMENT'S HUMORLESS LITERALISM HAS BEEN MIRACULOUSLY TRANSFORMED INTO A CHARMING MUSICIAN BY THE HARPSICHORD TRANSCRIPTIONS FORQUERAY'S SON MADE OF HIS FATHER'S PIECES FOR VIOLA DA GAMBA RELEASED ON SONY'S VIVARTE LABEL THE TWO INGRATIATING SUITES ARE FAR SUNNIER THAN MARAIS AND THE RECORDING IS SO WINNING THAT IT COULD HELP BRING FORQUERAY BACK INTO THE LIMELIGHT MONTECLAIR'S ONLY OPERA JEPTHE IS ANOTHER SURPRISE CONSIDERED THE MOST AVANTGARDE WORK OF ITS TIME UNLIKE THE MORE POPULIST ALCIONE IT TOYS WITH MANY OF THE PERIOD'S OPERATIC CONVENTIONS IN A MANNER THAT SEEMS ALMOST A FORETASTE OF POSTMODERNISM ESPECIALLY IN THE WAY THE FRIVOLOUS MYTHOLOGICAL GODS IN THE PROLOGUE ARE SWEPT OFF BY TRUTH TO MAKE WAY FOR A BIBLICAL TRAGEDY HEARD IN A NEW RECORDING ON HARMONIA MUNDI LED BY WILLIAM CHRISTIE IT MAKES FOR COMPELLING DRAMA MR CHRISTIE AN AMERICAN BASED IN PARIS IS THE MAN MOST RESPONSIBLE FOR HAVING REVIVED JEAN BAPTISTE LULLY'S REPUTATION WITH A STUNNING PRODUCTION OF ATYS PERFORMED FIRST IN PARIS AND THEN AT THE BROOKLYN ACADEMY OF MUSIC IN NEW YORK MR CHRISTIE HAS NOW TURNED TO JEANPHILIPPE RAMEAU THE GREATEST AND CULMINATING COMPOSER OF THE FRENCH BAROQUE STYLE RAMEAU IS THE COMPOSER OF THE PERIOD WHO NEEDS THE LEAST DEFENSE BUT HIS MUSIC IS STILL ONLY SELDOM ENCOUNTERED LAST YEAR MR CHRISTIE MADE A DAZZLING RECORDING OF RAMEAU'S RIOTOUSLY COLORFUL OPERABALLET LES INDES GALANTES AND NOW HE HAS RECORDED ONE OF RAMEAU'S GREATEST WORKS THE TRAGIC OPERA CASTOR AND POLLUX BOTH WORKS ARE ON HARMONIA MUNDI CASTOR HAS JUST BEEN RELEASED IN CONJUCTION WITH CONCERT PERFORMANCES OF IT AND OF LES INDES GALANTES AT BAM OVER THE WEEKEND THE CHRISTIE DISKS REACH NEW HEIGHTS IN THE PERFORMANCE OF THE FRENCH BAROQUE AND WILL SURELY BECOME CLASSICS SOMETHING TO PUT ON THE SHELF NEXT TO SAY FURTWANGLER'S TRISTAN UND ISOLDE WITH THIS SET THE FRENCH BAROQUE HAS REALLY ARRIVED 9303020104 930302 WHO'S NEWS TATE & LYLE'S BROWN IS LEAVING CEO POST SHAW NAMED SUCCESSOR SPECIAL TO THE WALL STREET JOURNAL LONDON UK SUGAR COMPANY TATE & LYLE PLC SAID ITS CHIEF EXECUTIVE OFFICER STEPHEN BROWN WAS LEAVING THE COMPANY HE WILL BE SUCCEEDED BY NEIL SHAW WHO WILL SWITCH FROM BEING A NONEXECUTIVE CHAIRMAN TO BEING EXECUTIVE CHAIRMAN THE COMPANY DIDN'T GIVE A SPECIFIC REASON FOR MR BROWN'S SUDDEN DEPARTURE BUT THERE APPARENTLY WERE SOME MANAGEMENTSTYLE CONFLICTS WE HAVE REACHED AN AMICABLE SEPARATION WITH STEPHEN BROWN AND WISH HIM WELL MR SHAW SAID BEFORE MR BROWN'S APPOINTMENT AS CHIEF EXECUTIVE MR SHAW SERVED AS EXECUTIVE CHAIRMAN AND CHIEF EXECUTIVE FINANCE DIRECTOR PAUL LEWIS WILL TAKE ON THE ADDED ROLE OF DEPUTY CHAIRMAN IN AN INTERVIEW MR LEWIS SAID OF MR BROWN WE FOUND THAT THE CULTURE WAS A BIT TOO DIFFERENT HIS MANAGEMENT STYLE DIDN'T FIT AND WE DECIDED TO BITE THE BULLET MR BROWN JOINED TATE & LYLE AS GROUP MANAGING DIRECTOR IN APRIL 1991 AND HAS SERVED AS CHIEF EXECUTIVE ONLY SINCE APRIL 1992 PREVIOUSLY HE HAD WORKED AT ALCAN ALUMINIUM LTD OF MONTREAL ASKED IF MR BROWN WAS BEING BLAMED FOR TATE & LYLE'S 18 DECLINE IN PRETAX PROFIT IN THE FISCAL YEAR THAT ENDED SEPT 26 1992 MR LEWIS SAID THERE IS NO PERSONAL CRITICISM INTENDED 9303020103 930302 CITICORP TO SELL IBES UNIT TO BARRA NEW YORK CITICORP CONTINUING TO SHED NONSTRATEGIC OPERATIONS SAID IT SIGNED A LETTER OF INTENT TO SELL ITS IBES INC SUBSIDIARY TO BARRA INC OF BERKELEY CALIF TERMS WEREN'T DISCLOSED IBES BASED IN NEW YORK DEVELOPS AND MARKETS PRINT AND ELECTRONIC DATABASES OF CORPORATE EARNINGS ESTIMATES BY SECURITY ANALYSTS BARRA BUILDS MATHEMATICAL MODELS OF CAPITAL MARKETS FOR USE BY FINANCIAL MANAGERS AND CONSULTANTS BARRA'S CHIEF EXECUTIVE OFFICER ANDREW RUDD SAID HE EXPECTS THE COMPANY'S ANALYTICAL EXPERTISE WILL BE USED TO DEVELOP NEW SERVICES FOR IBES CITICORP ACQUIRED IBES IN JULY 1986 WHEN IT PURCHASED LYNCH JONES & RYAN AN INSTITUTIONAL BROKERAGE COMPANY BASED IN NEW YORK THAT OWNED THE EARNINGSESTIMATE SERVICE KEEPING ONLY THE IBES UNIT CITICORP SOLD LYNCH JONES IN DECEMBER 1991 AS PART OF ITS BROADER PLAN TO SELL NONSTRATEGIC ASSETS 9303020102 930302 PENN TRAFFIC CO FILES FOR OFFERING OF NOTES TWO MILLION SHARES JOHNSTOWN PA PENN TRAFFIC CO SAID IT FILED A REGISTRATION STATEMENT FOR PROPOSED PUBLIC OFFERINGS OF 300 MILLION IN SENIOR SUBORDINATED NOTES DUE 2005 AND TWO MILLION COMMON SHARES SEPARATELY THE FOOD RETAILER SAID SALOMON INC PLANS TO SELL ITS 788115 PENN TRAFFIC SHARES IN THE SAME OFFERING WITH THE NEW SHARES THE STAKE AMOUNTING TO 93 OF PENN TRAFFIC'S COMMON MAKES SALOMON THE COMPANY'S SECONDLARGEST HOLDER PROCEEDS OF THE NEWLY ISSUED STOCK AND BONDS ARE TO BE USED TO RETIRE DEBT AND TO BUY OUT MINORITY HOLDERS OF THE COMPANY'S BIG BEAR STORES CO UNIT PENN TRAFFIC IS TO BUY THE 24 OF BIG BEAR COMMON THAT IT DOESN'T OWN TOGETHER WITH THE REMAINING 499000 SHARES OF BIG BEAR CONVERTIBLE PREFERRED AT 36 A SHARE THE TOTAL COST OF 216 MILLION INCLUDES 108 MILLION IN CASH AND 307850 PENN TRAFFIC SHARES THE NOTE OFFERING IS TO BE UNDERWRITTEN BY GOLDMAN SACHS & CO AND BT SECURITIES CORP GOLDMAN SACHS ALSO IS TO MANAGE THE STOCK OFFERING PENN TRAFFIC OPERATES 217 SUPERMARKETS IN THE MIDWEST AND NEW YORK STATE UNDER THE BIG BEAR RIVERSIDE MARKETS BILO AND OTHER NAMES THE COMPANY'S FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID IT PLANNED TO REDEEM 35 MILLION IN SENIORINCREASING RATES NOTES DUE 1997 67 MILLION OF 135 SUBORDINATED NOTES DUE 1998 135 MILLION OF BIG BEAR 1275 NOTES DUE 1997 AND 154 MILLION IN SENIOR SUBORDINATED NOTES DUE 1998 BY ITS P&C FOOD MARKETS INC UNIT 9303020101 930302 HEALTH NETWORK OF DOCTORS TO MARKET HEART CARE FOR SET FEES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL HEART DOCTORS IN ABOUT 40 US CITIES ARE BANDING TOGETHER TO OFFER STANDARDIZED CARDIAC SERVICES THAT THEY SAY WILL CUT COSTS BUT MAINTAIN QUALITY THE DOCTORS ALREADY CONSIDERED AMONG THE TOPPERFORMING CARDIAC PHYSICIANS IN THE US ARE FORMING A NETWORK TO PROVIDE OPENHEART SURGERY ANGIOPLASTY AND OTHER SERVICES FOR SET FEES TO CORPORATIONS HEALTH PLANS AND GOVERNMENT PROGRAMS SUCH AS MEDICARE TOGETHER WITH PARTICIPATING HOSPITALS THE DOCTORS EXPECT TO CUT THE COST OF A TYPICAL 60000 BYPASS OPERATION FOR INSTANCE TO BETWEEN 30000 AND 40000 THE EFFORT WHICH INVOLVES ABOUT 500 CARDIOLOGISTS AND HEART SURGEONS FROM NEARLY 40 DIFFERENT PRACTICE GROUPS IS AN AMBITIOUS BID BY DOCTORS TO MAINTAIN CONTROL OVER THEIR WORK AND HELP SHAPE THE CHANGES BUFFETING US MEDICINE AS EMPLOYERS AND THE CLINTON ADMINISTRATION GRAPPLE WITH SOARING HEALTH COSTS IT IS ALSO A BOLD ATTEMPT TO CAPTURE A BIG CHUNK OF THE NATION'S HEART BUSINESS BY OFFERING SERVICES DIRECTLY TO BIG COMPANIES LARGE EMPLOYERS ARE INCREASINGLY USING THEIR PURCHASING POWER TO SEEK QUALITY CARE AT LOW COST MEANWHILE THE ADMINISTRATION IS CONSIDERING PROPOSALS FOR OVERHAULING US HEALTH CARE THAT ARE INTENDED TO ENCOURAGE HEALTHCARE PROVIDERS TO COMPETE ON COST AND QUALITY PHYSICIANS HAVE BEEN SLOW TO REACT BUT WE ARE THE MAJOR DRIVERS OF COSTS AND QUALITY IN THE HEALTHCARE SYSTEM SAYS WILLIAM D KNOPF A HEART DOCTOR AT ATLANTA CARDIOLOGY GROUP ATLANTA WHO IS THE PRESIDENT OF THE NETWORK TO TRULY DELIVER CARE COSTEFFECTIVELY PHYSICIANS MUST BE BROUGHT INTO THE PROCESS HE SAYS IT'S IMPORTANT FOR US AS PROVIDERS TO DEVELOP WHAT WE FEEL IS THE BEST WAY TO TAKE CARE OF PATIENTS THE PARTICIPATING DOCTORS ALREADY DO ABOUT 15 OF THE CORONARYBYPASS OPERATIONS AND ANGIOPLASTY PROCEDURES PERFORMED IN THE US INDEED TO BE INVITED TO JOIN THE NETWORK EACH CARDIOLOGY PRACTICE HAD TO DO AT LEAST 500 BYPASS AND 300 ANGIOPLASTY PROCEDURES A YEAR HOSPITALS WHERE THE DOCTORS DO THE BULK OF THEIR WORK ARE ALSO MEMBERS OF THE NETWORK THE DOCTORS BELIEVE THAT BY POOLING THEIR EXPERTISE MEASURING THEIR RESULTS AND DEVELOPING STANDARD APPROACHES TO HEART PROCEDURES THEY CAN IMPROVE THEIR COMPETITIVE POSITION IN THEIR LOCAL MARKETS IN THE PROCESS THEY COULD HELP TRANSFORM CARDIAC MEDICINE THE CONCEPT IS THAT WHEN A PATIENT GETS CARE IN MINNESOTA IT LOOKS THE SAME AS IT DOES IN ATLANTA DR KNOPF SAYS GENERAL MOTORS DOESN'T MAKE BUICKS ONE WAY IN CALIFORNIA AND ANOTHER WAY IN KENTUCKY IF WE CAN STANDARDIZE CARE THEN WE CAN REALLY TACKLE THE ISSUE OF COSTS BY FIGURING OUT WHERE THE FAT IS IN THE SYSTEM AND GETTING IT OUT THE STAKES ARE ENORMOUS IN 1991 TOTAL US HOSPITAL CHARGES FOR CARDIAC CARE AMOUNTED TO 82 BILLION ACCORDING TO HEALTH CARE INVESTMENT ANALYSTS INC A BALTIMORE MD HEALTHDATA COMPANY MEDICARE REIMBURSEMENT AND NEGOTIATED CONTRACTS PROBABLY REDUCED ACTUAL REVENUE TO BETWEEN 55 BILLION AND 60 BILLION STILL ABOUT 75 OF TOTAL US HEALTH EXPENDITURES MICHAEL CADGER A PRINCIPAL AT BENEFITS CONSULTANT FOSTER HIGGINS ESTIMATES THAT US COMPANIES SPEND 15 BILLION A YEAR ON CORONARYBYPASS SURGERY ANGIOPLASTY AND A COUPLE OF OTHER PROCEDURES MOREOVER BOTH COST AND QUALITY VARY WIDELY A REPORT LAST NOVEMBER BY THE PENNSYLVANIA HEALTH CARE COST CONTAINMENT COUNCIL FOR INSTANCE FOUND A FOURFOLD DIFFERENCE IN AVERAGE CHARGES AMONG 35 HOSPITALS PERFORMING BYPASS SURGERY IF THE NETWORK SUCCEEDS IN SIGNING UP CUSTOMERS IT COULD HELP PRECIPITATE A SHAKEOUT IN CARDIAC SERVICES AMONG 850 US HOSPITALS THAT PROVIDE OPEN HEART SURGERY JUST 44 DO AT LEAST 250 CORONARY BYPASS OPERATIONS A YEAR AND 12 DO UNDER 50 BUT RESEARCH SHOWS THAT CENTERS DOING AT LEAST 200 BYPASSES A YEAR HAVE SIGNIFICANTLY LOWER DEATH RATES THAN THOSE DOING UNDER 200 SIMILARLY HIGHVOLUME PROGRAMS ACHIEVE ECONOMIES OF SCALE THAT CAN SHARPLY REDUCE COSTS ALL OF THIS IS PROVOKING INTEREST AMONG EMPLOYERS TO CONTRACT SEPARATELY FOR MAJOR HEART PROCEDURES MUCH THE WAY MANY COMPANIES ALREADY DO FOR MENTAL HEALTH AND PRESCRIPTIONDRUG BENEFITS DELTA AIR LINES ANNOUNCED IN JANUARY THAT IT HAS SELECTED SIX HOSPITALS AROUND THE US TO PROVIDE HEART SERVICES TO ITS EMPLOYEES ONE OF THE HOSPITALS IS ST JOSEPH'S OF ATLANTA WHERE DR KNOPF AND HIS COLLEAGUES AT ATLANTA CARDIOLOGY GROUP DO THEIR INPATIENT PROCEDURES THE SAME HOSPITAL WAS ONE OF THE FOUR ORIGINAL PARTICIPANTS IN A FEDERAL DEMONSTRATION PROJECT TO PROVIDE BYPASS SURGERY TO MEDICARE BENEFICIARIES FOR A PRICE THAT BUNDLED BOTH HOSPITAL AND PHYSICIAN FEES THE NETWORK IS AN OUTGROWTH OF THE DEMONSTRATION PROJECT IN WHICH DOCTORS ADMINISTRATORS AND NURSES WORKED TO STREAMLINE PROCEDURES REDUCE HOSPITAL STAYS AND CUT OUT TESTS THAT DIDN'T IMPROVE CARE DR KNOPF FIGURED DOCTORS AROUND THE US COULD USE STRATEGIES FROM THE PROJECT TO ATTRACT PRIVATE SECTOR CUSTOMERS CORPORATIONS WERE LOOKING FOR A GLOBAL FEE PACKAGE THAT WAS LOW COST AND STILL MAINTAINED QUALITY DR KNOPF SAYS IN NOVEMBER HE MET WITH COLLEAGUES AT ABOUT A HALFDOZEN OTHER PRACTICES INCLUDING THE MINNEAPOLIS HEART INSTITUTE THE MIDAMERICA HEART INSTITUTE KANSAS CITY AND THE INDIANA HEART INSTITUTE INDIANAPOLIS THESE ORGANIZERS THEN INVITED REPRESENTATIVES FROM 65 GROUPS AROUND THE US TO A MEETING IN JANUARY SO FAR 45 HAVE BEEN INVITED TO JOIN THE NETWORK BASED ON DEATH RATES LENGTH OF HOSPITAL STAYS VOLUME OF PROCEDURES AND OTHER FACTORS HOW MANY DOCTORS AND HOSPITALS WILL ULTIMATELY PARTICIPATE ISN'T CLEAR IN ADDITION TO CORPORATIONS ORGANIZERS HOPE THE NETWORK WILL ATTRACT HEALTH MAINTENANCE ORGANIZATIONS LOOKING FOR HIGHQUALITY LOWCOST SERVICES AND EVEN MEDICARE WHICH NOW HAS SEVEN HOSPITALS IN ITS BUNDLEDFEE PROGRAM WE HOPE THE GOVERNMENT WILL LOOK AT THE NETWORK AS A VEHICLE TO EXPAND THE DEMONSTRATION PROJECT SAYS LARRY BYRNE OF LBA CONSULTING INC DENVER WHO IS HELPING TO ORGANIZE THE NETWORK MEANTIME THE NETWORK WILL COLLECT DATA ON DOCTORS' RESULTS AND EVALUATE STRATEGIES TO CONTROL COSTS IN AN EFFORT TO DEVELOP STANDARD APPROACHES TO TREATMENT IN THE MEDICARE PROJECT FOR INSTANCE DOCTORS AT ST JOSEPH'S REMOVE CHESTDRAINAGE TUBES WITHIN 24 HOURS INSTEAD OF THE USUAL 48 IMPROVING HEALING AND HELPING TO SHORTEN HOSPITAL STAYS WHILE THE IMMEDIATE FOCUS IS ON COMMON HIGHCOST PROCEDURES KEVIN GRAHAM A CARDIOLOGIST AT MINNEAPOLIS HEART INSTITUTE SAYS HE EXPECTS THE NETWORK TO DEVELOP PREVENTIVE SERVICES AND WAYS TO LINK UP WITH PRIMARY CARE DOCTORS WHO FIRST TREAT PATIENTS WITH HEART DISEASE WE HAVE TO DO CARDIOVASCULAR CARE NOT JUST TAKE OFF THE HIGHTICKET ITEMS HE SAYS CORPORATE PURCHASERS INCREASINGLY ARE INTERESTED IN DIRECTING THEIR EMPLOYEES TO HEALTH PLANS THAT DEMONSTRATE THE ABILITY TO NOT ONLY PROVIDE MAJOR PROCEDURES AT LOW COST BUT ALSO TO PREVENT THE NEED FOR THE PROCEDURES IN THE FIRST PLACE 9303020100 930302 WHO'S NEWS AMERICAN HOME TAPS HASSAN FOR NEW POST NEW YORK AMERICAN HOME PRODUCTS CORP NAMED FRED HASSAN TO THE NEW POSITION OF GROUP VICE PRESIDENT IN CHARGE OF THE COMPANY'S GLOBAL PHARMACEUTICAL BUSINESS MR HASSAN 47 YEARS OLD HAS BEEN PRESIDENT OF THE COMPANY'S WYETHAYERST LABORATORIES UNIT FOR THE PAST FOUR YEARS HE HAS BEEN INSTRUMENTAL IN BOOSTING AMERICAN HOME'S DRUG DISCOVERY DEVELOPMENT AND MARKETING OPERATION UNDER MR HASSAN'S LEADERSHIP FOR INSTANCE WYETHAYERST HAS MADE NUMEROUS ALLIANCES WITH SMALL BIOTECHNOLOGY COMPANIES PREVIOUS TO COMING TO AMERICAN HOME MR HASSAN HAD SERVED AS CHIEF EXECUTIVE OFFICER OF THE US DRUG SUBSIDIARY OF SWITZERLAND'S SANDOZ AG JOHN R STAFFORD AMERICAN HOME'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MR HASSAN WILL BE RESPONSIBLE FOR POSITIONING THE COMPANY TO BENEFIT FROM THE RAPID CHANGES AFFECTING THE PHARMACEUTICAL INDUSTRY BROUGHT ON BY THE HEALTHCARE DEBATE IN AMERICA AND COST CONTAINMENT IN THE US AND EUROPE AMERICAN HOME A CONSUMER HEALTH AND PHARMACEUTICAL PRODUCTS MAKER NAMED ROBERT ESSNER 45 YEARS OLD TO SUCCEED MR HASSAN AS HEAD OF WYETHAYERST MR ESSNER HAS BEEN WYETHAYERST'S EXECUTIVE VICE PRESIDENT SINCE 1991 MR ESSNER HAD SERVED WITH MR HASSAN AT SANDOZ 9303020099 930302 BUSINESS BRIEFS WASHINGTON MUTUAL SAVINGS BANK COMPLETED ITS PLAN TO ACQUIRE PIONEER SAVINGS BANK OF LYNNWOOD WASH MICHAEL BAKER CORP SAID ITS MELLON STUART CONSTRUCTION INC UNIT RECEIVED A 165 MILLION CONTRACT TO REPAIR THREE BRIDGES IN PITTSBURGH UNION PACIFIC RAILROAD THE MAIN UNIT OF UNION PACIFIC CORP PLACED A 70 MILLION ORDER WITH GENERAL ELECTRIC CO FOR 50 LOCOMOTIVES UNION CARBIDE CORP PLANS TO BUILD A 650 MILLIONPOUNDAYEAR POLYETHYLENE PRODUCTION PLANT AT ITS TAFT LA FACILITY MEDIA VISION TECHNOLOGY INC AGREED TO ACQUIRE CLOSELY HELD PELLUCID INC FOR ABOUT 15 MILLION IN STOCK TURNER CORP'S TURNER CONSTRUCTION CO UNIT WAS AWARDED THE CONTRACT TO BUILD A PETROLEUM ADDITIVES RESEARCH FACILITY FOR ETHYL CORP CIRRUS LOGIC INC COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF PRIVATELY HELD PACIFIC COMMUNICATION SCIENCES INC OF SAN DIEGO MEDICAL RESOURCES INC SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF GULF COAST MRI A PRIVATE FACILITY IN NAPLES FLA FOR ABOUT 2 MILLION 9303020098 930302 INDUSTRY FOCUS US ELECTRIC COMPANIES SEE PROMISED LAND ELSEWHERE WITH A MATURE DOMESTIC MARKET OPPORTUNITIES FOR UTILITIES ARE OVERSEAS BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL US ELECTRIC UTILITIES ONCE THE ANTITHESIS OF ENTREPRENEURSHIP ARE BECOMING KEY COMPETITORS IN THE RAPIDLY BURGEONING OVERSEAS MARKET FOR ELECTRICITY GENERATION AND DISTRIBUTION AS THEY DO THE LONGPROTECTED COMPANIES ARE HAVING TO LEARN TO WHEEL AND DEAL IN STRANGE CULTURES AND CALCULATE RISKS THEY NEVER THOUGHT OF BEFORE LIKE POLITICAL UNCERTAINTY AND CURRENCY FLUCTUATIONS QUITE A FEW ELECTRIC UTILITIES NOW ARE VERY DELIBERATELY LOOKING OFFSHORE SAYS LINDLEY DEGARMO AN INVESTMENT BANKER IN CHARGE OF THE INDEPENDENT POWER GROUP AT SALOMON BROTHERS MANY EXECUTIVES ARE TRYING TO FIGURE OUT HOW TO DIVERSIFY AND KEEP THEIR BUSINESS GROWING IT'S A BRAVE NEW WORLD FOR A LOT OF THESE GUYS SCECORP'S MISSION ENERGY CO UNIT IN SAN DIEGO CALIF WITH DEALS IN AUSTRALIA ENGLAND AND ELSEWHERE ALREADY IN THE BAG IS PURSUING DEALS FROM INDONESIA TO MEXICO SOUTHERN CO'S SOUTHERN ELECTRIC INTERNATIONAL UNIT IN ATLANTA HAS ACQUIRED A STAKE IN A BAHAMIAN FACILITY AND IS CHASING PROSPECTS IN MEXICO AUSTRALIA AND BEYOND DUKE ENERGY CORP AN AFFILIATE OF DUKE POWER CORP BASED IN CHARLOTTE NC HAS ACQUIRED A STAKE IN A FACILITY IN ARGENTINA AND IS LOOKING FOR ADDITIONAL BUSINESS THERE AND IN AUSTRALIA MEXICO AND ASIA MYRIAD FACTORS ARE BOTH PUSHING AND PULLING UNITS OF BIG UTILITIES TO TAKE THE BOLD STEP ABROAD AT HOME THE US ELECTRIC INDUSTRY FINDS ITSELF IN A MATURE MODE WITH GROWTH IN DEMAND PROJECTED AT 19 A YEAR THROUGH THE END OF THE CENTURY BY CONTRAST GROWTH OUTSIDE THE US IS GOING GANGBUSTERS WITH THE DEMAND FOR NEW POWER SURGING BY DOUBLE DIGITS IN MANY NATIONS RCG/HAGLER BAILLY INC AN INTERNATIONAL ENERGY AND ENVIRONMENT CONSULTING FIRM BASED IN ARLINGTON VA ESTIMATES THE WORLDWIDE ELECTRIC POWER MARKET FROM NOW THROUGH THE YEAR 2000 WILL BE A STAGGERING 630550 MEGAWATTS NEARLY AS LARGE AS THE TOTAL INSTALLED US CAPACITY A WAVE OF PRIVATIZATION IS ADDING TO THE OPPORTUNITIES MANY NATIONS IN THE DEVELOPING WORLD AND IN THE FORMER SOVIET BLOC ARE MOVING SWIFTLY TO SELL THEIR STATEOWNED UTILITIES AND HUNGER FOR THE PRIVATE CAPITAL AND TECHNICAL EXPERTISE TO DO THE JOB AT THE SAME TIME DEREGULATION IS MAKING IT EASIER FOR US ELECTRIC UTILITIES TO GET INVOLVED OVERSEAS FOR MANY US UTILITIES BUILDING POWER PLANTS FOR OTHER PEOPLE ISN'T ALL THAT NEW THEY GOT INTO THAT BUSINESS OVER THE PAST 14 YEARS WHEN REGULATORY CHANGE FOSTERED COGENERATION PLANTS AND INDEPENDENT POWER PRODUCERS WHICH MAKE AND SELL WHOLESALE POWER TO LOCAL UTILITIES WHICH ARE OBLIGED BY LAW TO BUY IT NOW THAT BUSINESS TOO HAS SLOWED DOMESTICALLY AND A GLUT OF COGENERATION AND INDEPENDENT PRODUCERS SOME TIED TO UTILITIES SOME NOT ARE SCRAMBLING FOR NEW MARKETS AT THE CUTTING EDGE OF THE INTERNATIONAL MARKET ARE THE ONES WHO CUT THEIR TEETH DOMESTICALLY WHEN THE OPPORTUNITIES WERE PLENTIFUL SAYS ERIC SILVERMAN A PARTNER AT MILBANK TWEED HADLEY & MCCLOY WHO SPECIALIZES IN INTERNATIONAL ENERGY PROJECT FINANCING NOW THEY'RE SIMPLY EXPORTING THAT KNOWHOW OVERSEAS WHERE IT'S A VERY FERTILE MARKET MARKET LEADERS INCLUDE MISSION ENERGY AND HOUSTONBASED ENRON CORP THE NATION'S BIGGEST INDEPENDENT POWER PRODUCER AND SOMETHING OF AN ANOMALY IN THAT IT IS A NATURAL GAS CONCERN JUST LAST WEEK ENRON HIRED FORMER SECRETARY OF STATE JAMES A BAKER III AND FORMER COMMERCE SECRETARY ROBERT A MOSBACHER AS CONSULTANTS TO BOLSTER OVERSEAS PROJECTS DESPITE IMPRESSIVE CREDENTIALS IN BUILDING SUCH PROJECTS MANY OTHER US UTILITIES STILL THE PROVINCIAL PRODUCTS OF LONGSTANDING REGULATION ARE LESS ADEPT THAN SOME FOREIGN PEERS IN DEALING INTERNATIONALLY POLITICAL AND ECONOMIC RISK MINIMAL AT HOME ARE PARAMOUNT IN SOME FOREIGN LANDS YET TOUGH TO GAUGE EUROPEAN COMPETITORS SUCH AS ELECTRICITE DE FRANCE AND BELGIUM'S TRACTABEL ARE MORE ACCUSTOMED TO NEGOTIATING WITH CLIENTS FROM DIFFERENT CULTURES IN THE POTENTIALLY LUCRATIVE EASTERN EUROPE MARKET IN PARTICULAR THE WESTERN EUROPEANS HAVE AN EDGE IN KNOWING THE LEGAL AND REGULATORY LANDSCAPE BETTER THAN AMERICANS TYPICALLY US CONCERNS TEAM UP WITH A LOCAL PARTNER SOMEONE WHO IS WELLCONNECTED IN THE COUNTRY TO PROVIDE POLITICAL SUPPORT MANEUVER THROUGH THE CULTURAL MAZE AND ADD AN ELEMENT OF LOCAL CONTENT TO A PROJECT BUT LOCAL PARTNERS BRING THEIR OWN PERILS SOUTHERN ELECTRIC INTERNATIONAL FOR EXAMPLE WAS SWEPT INTO AN EXPLOSIVE SCANDAL IN PORTUGAL WHEN ITS LOCAL PARTNER IN A CONSTRUCTION PROJECT THERE CAME UNDER SCRUTINY FOR POSSIBLE IMPROPRIETIES TIED TO THE BIDDING PROCESS THE COMPANY FIRED ITS OWN PRESIDENT FOR HIS ALLEGED MISSTEPS IN DEALING WITH THE LOCAL PARTNER'S IMPROPER SUBMISSION OF INVOICES TO SOUTHERN ELECTRIC THE WHOLE PROJECT HAD TO BE REBID AND SOUTHERN ELECTRIC LOST TIME MONEY AND FACE IN THE PROCESS IT IS STILL BATTLING A LAWSUIT FILED BY THE FIRED EXECUTIVE WHO ALLEGES HE WAS DEFAMED AND IMPROPERLY DISMISSED SOUTHERN ELECTRIC DECLINED TO COMMENT CITING PENDING LITIGATION WHILE INTERNATIONAL PROJECTS HOLD PROMISE OF HIGH RETURNS SOMETIMES PROJECTED AT 20 TO 30 AND MORE IN RISKY AREAS COMPETITION IS ALREADY KEEN SOME US ELECTRIC CONCERNS EAGER TO ESTABLISH THEMSELVES ABROAD HAVE BEEN SACRIFICING PRICE TO GAIN MARKET FOOTHOLDS AND AN INTERNATIONAL REPUTATION MANY IN THE INDUSTRY FOR INSTANCE QUESTION WHETHER MISSION ENERGY CAN PRODUCE AN ATTRACTIVE RETURN ON LOY YANG B A 1000MEGAWATT PROJECT IT IS FINISHING NEAR MELBOURNE AUSTRALIA MISSION ENERGY WHICH WILL OWN 51 OF THE FACILITY CONCEDES ITS BID WAS VERY AGGRESSIVE SAYS MIKE MCBEE ITS MANAGER OF STRATEGIC PLANNING IT'S PART OF THE STRATEGY OF GOING OUT THERE SAYS MR MCBEE WE DO WANT TO PLAY IN THE PACIFIC RIM AND SOUTHEAST ASIA SO WE DEFINITELY WANTED TO WIN THAT ONE MISSION STILL EXPECTS A RESPECTABLE 13 TO 14 RETURN HE ADDS WITH SO MANY VARIABLES IN THE FLEDGLING INTERNATIONAL MARKET BIDS ARE SOMETIMES ALL OVER THE MAP IN DECEMBER A CONSORTIUM INCLUDING HOUSTON INDUSTRIES INC TOOK OVER OPERATION OF AN ELECTRIC FACILITY AND DISTRIBUTION SYSTEM IN LA PLATA ARGENTINA AFTER BIDDING 139 MILLION FOR A 51 STAKE FAR MORE THAN DOUBLE THE RUNNERUP'S BID STILL HOUSTON INDUSTRIES WHOSE INTEREST IS 37 MILLION WHICH IS PEANUTS FOR A CONCERN WITH 46 BILLION IN ANNUAL REVENUE SAYS IT EXPECTS TO TURN A GOOD PROFIT NEARTERM IT PLANS TO SHORE UP EFFICIENCY BY AMONG OTHER THINGS DISMISSING HALF THE EMPLOYEES MORE IMPORTANT IT SAYS ARE THE PROSPECTS FOR THE FUTURE LA PLATA CUSTOMERS IT SAYS CURRENTLY USE LESS THAN 1400 KILOWATT HOURS OF POWER ANNUALLY COMPARED WITH AN AVERAGE OF 13000 KILOWATT HOURS FOR HOUSTON CUSTOMERS IT PREDICTS LA PLATA WILL INCREASE ENERGY SALES IN PART THROUGH THE SPREAD OF AIR CONDITIONING TO 14 MILLION KILOWATT HOURS BY 1997 UP 68 FROM 1991 DESPITE THE FORAYS ABROAD MOST ELECTRIC COMPANIES CONCEDE IT WILL BE YEARS BEFORE SUCH PROJECTS ADD MUCH TO EARNINGS BUT MANY SAY IT IS ESSENTIAL TO BE A GLOBAL PLAYER JUST TO KEEP ABREAST OF TECHNOLOGY AND OPERATIONS WE HAVE TO BE OUT THERE COMPETING SAYS RHEM WOOTEN DUKE ENERGY PRESIDENT WE WILL NOT BECOME THE COMPANY WE WANT TO BE BY SITTING AROUND CHARLOTTE NC LOOKING AT OURSELVES MISSION ENERGY CO A UNIT OF SCECORP SAID IT EXPECTS A MUCH HIGHER RATE OF RETURN ON ITS LOY YANG B ELECTRIC PROJECT IN AUSTRALIA THAN THE 13 TO 14 INCORRECTLY STATED IN YESTERDAY'S INDUSTRY FOCUS ARTICLE 9303020097 930302 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MARCH 215 NEW YORK PUBLIC LIBRARY FIFTH AVENUE AT 42ND STREET MARCH 13MAY 22 212 2217676 SEVENTYFIVE PAINTINGS OF FOUR FRENCH CITIES PARIS ROUEN DIEPPE AND LE HAVRE DONE BY IMPRESSIONIST CAMILLE PISSARRO PISSARRO WHO IS BEST KNOWN FOR HIS EARLIER RURAL SCENES CREATED THE CITYSCAPES BETWEEN 1893 AND 1903 IN THE LAST DECADE OF HIS LIFE JOACHIM PISSARRO THE ARTIST'S GREATGRANDSON SERVED AS GUEST CURATOR OF THE SHOW WHICH WAS ORGANIZED WITH THE DALLAS MUSEUM OF ART AND THE ROYAL ACADEMY OF ARTS LONDON PHILADELPHIA MUSEUM OF ART BENJAMIN FRANKLIN PARKWAY MARCH 7JUNE 6 215 7875431 THE ARTIST WAS FAMOUS DURING HIS LIFE 15581617 AS AN ENGRAVER AND AS A MANNERIST PAINTER BUT HE ALSO WAS AN IMPORTANT EXPONENT OF THE ART OF CHIAROSCURO WOODCUTS ALL OF HIS KNOWN WOODCUTS ARE ON VIEW HERE 32 RELIGIOUS AND MYTHOLOGICAL SCENES LANDSCAPES AND PORTRAITS ALSO ON DISPLAY ARE WOODCUTS BY THE ARTIST'S FORERUNNERS AND CONTEMPORARIES IN THE MEDIUM WHICH TRIED TO DUPLICATE WITH WOODBLOCKS THE EFFECT OF CHIAROSCURO DRAWINGS WHICH USED SHADE AND LIGHT TO CREATE AN ILLUSION OF DEPTH CLEVELAND MUSEUM OF ART 11150 EAST BOULEVARD THROUGH APRIL 11 ALMOST 80 PIECES OF CHINESE PORCELAIN FROM THE MING 13681644 AND QING 16441911 DYNASTIES ON LOAN FROM 10 HONG KONG COLLECTORS THE SHOW EXPLORES THE MEANING OF SYMBOLS AND COLORS IN DECORATED PORCELAINS MADE FOR EMPERORS AND MEMBERS OF THE IMPERIAL COURT MOST OF THE PIECES BEAR IMAGES OF IMPERIAL POWER AND GRANDEUR OR CONVEY WISHES FOR GOOD FORTUNE WEALTH AND LONG LIFE A NEW PRODUCTION DESIGNED BY GLASS ARTIST DALE CHIHULY REFLECTS DEBUSSY'S IMPRESSIONIST MASTERPIECE PELLEAS AND MELISANDE IN NEW WAYS SHERI GREENAWALD AND MALCOLM WALKER SING THE UNHAPPILY MUMBLING COUPLE SHEILA NADLER IS PELLEAS'S WEARILY MUTTERING MOM AND MICHAEL DEVLIN IS GRUMPY GOLAUD GERARD SCHWARZ CONDUCTS CARLY SIMON'S FIRST OPERA IS FOR KIDS THOUGH ADULTS ARE ADMITTED THE STORY ABOUT A YOUNG ATHLETE TRYING TO GET HIS PARENTS BACK TOGETHER STARS ANDREW HARRISON LEEDS AS ROMULUS GREER GRIMSLEY AND LURETTA BYBEE AS THE PARENTS AND WENDY HILL AS A NUTTY PERFORMANCE ARTIST FRANCESCA ZAMBELLO DIRECTS JEFF HALPERN CONDUCTS JOHN JAY THEATER 10TH AVENUE AT 59TH STREET MARCH 6 AND 7 A NEW PRODUCTION OF VERDI'S RIGOLETTO DIRECTED BY MICHA HENDEL AND CONDUCTED BY BARBARA SILVERSTEIN FEATURES JOHN DANIECKI AS THE DUKE RANDI MARRAZZO AS GILDA AND ROBERT HONEYSUCKER AS THE LURCHING JESTER AN UNUSUAL RUSSIAN DOUBLE BILL HIGHLIGHTS THE COMPANY'S LIVELY ENDOFSEASON ROUNDUP OF NEW AND FAMILIAR WORK THE DOUBLE BILL RACHMANINOFF'S FRANCESCA DA RIMINI AND TCHAIKOVSKY'S IOLANTHE MARCH 3 7 AND 14 MATINEE ALTERNATES WITH PUCCINI'S LA FANCIULLA DEL WEST MARCH 2 4 7 MATINEE 11 AND 14 GOUNOD'S ROMEO ET JULIETTE MARCH 5 10 AND 12 AND VERDI'S IL TROVATORE MARCH 6 9 AND 13 9303020096 930302 BUSINESS BRIEF PRESIDENTIAL LIFE WILL RESTATE RESULTS AS PART OF SETTLEMENT WITH THE SEC NYACK NY PRESIDENTIAL LIFE CORP WILL RESTATE SEVERAL YEARS OF FINANCIAL RESULTS TO REFLECT A MARKDOWN OF SOME JUNK SECURITIES IN ITS PORTFOLIO AS PART OF A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY IS PRINCIPALLY AN ISSUER OF ANNUITY CONTRACTS THROUGH ITS PRESIDENTIAL LIFE INSURANCE CO UNIT THE SEC IN A SIGNED ORDER YESTERDAY CONFIRMING THE SETTLEMENT CALLS FOR PRESIDENTIAL TO RESTATE THE RESULTS IN ORDER TO COMPLY WITH GENERALLY ACCEPTED ACCOUNTING STANDARDS FOR VALUING INVESTMENT SECURITIES THE ORDER ALSO CALLS FOR PRESIDENTIAL NOT TO COMMIT ANY VIOLATIONS OF SEC ACCOUNTING RULES IN THE FUTURE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY PRESIDENTIAL CLOSED AT 7375 DOWN 125 CENTS THE PORTFOLIO INVESTMENTS TO BE MARKED DOWN INCLUDE DEBT SECURITIES AND PREFERRED STOCK OF ALLIED STORES CORP CIRCLE K CORP SOUTHLAND CORP INTEGRATED RESOURCES CORP TEXAS AIR CORP AND THE NOWDEFUNCT EASTERN AIR LINES THE SEC ORDER AND SETTLEMENT DOESN'T CALL FOR ANY FINES AGAINST PRESIDENTIAL WHICH NEITHER ADMITTED NOR DENIED ANY SEC VIOLATIONS IN THE SETTLEMENT HERBERT KURZ PRESIDENT OF PRESIDENTIAL LIFE SAID THE COMPANY OFFERED TO SETTLE IN ORDER TO RESOLVE THE ISSUE AND TO AVOID A PROTRACTED PROCEEDING PRESIDENTIAL LIFE AGREED TO RESTATE ITS 1989 RESULTS WHICH WERE THE FOCUS OF THE SEC INVESTIGATION AND SUBSEQUENT ANNUAL RESULTS IT SAID THE RESTATEMENTS HAVE NO EFFECT ON ITS PRESIDENTIAL LIFE INSURANCE UNIT'S REPORTED STATUTORY STATEMENTS THE SEC IN ITS ORDER AND SETTLEMENT SAID THAT PRESIDENTIAL LIFE AS OF DEC 31 1989 HAD ASSETS OF ABOUT 24 BILLION WHICH INCLUDED ABOUT 878 MILLION OR 37 OF THE PORTFOLIO INVESTED IN DEBT SECURITIES RATED BA OR BELOW BY MOODY'S INVESTORS SERVICE INC THAT YEAR PRESIDENTIAL REPORTED 683 MILLION IN PRETAX PROFIT BUT THE SEC CHARGED THAT PROPER ACCOUNTING FOR JUNKBOND HOLDINGS TO REFLECT THEIR TRUE MARKET VALUE SHOULD HAVE REDUCED THAT AMOUNT BY 207 MILLION THE SEC SAID VALUATION OF THE SECURITIES SHOULD REFLECT THE CONDITION OF THEIR ISSUERS MANY OF WHOM WERE DISTRESSED AND EITHER IN BANKRUPTCY COURT OR NEAR DEFAULT 9303020095 930302 TECHNOLOGY & HEALTH SEMICONDUCTOR INDUSTRY DOESN'T PLAN TO ASK US TO RETALIATE AGAINST JAPAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SEMICONDUCTOR INDUSTRY CITING A GROWING MARKET SHARE FOR IMPORTED COMPUTER CHIPS IN JAPAN SAYS IT DOESN'T PLAN TO ASK THE US THIS MONTH TO RETALIATE AGAINST JAPAN UNDER A BILATERAL SEMICONDUCTOR AGREEMENT THE INDUSTRY'S DECISION ALLEVIATES THE THREAT THAT THE CLINTON ADMINISTRATION WHICH IS TRYING TO DEVELOP AN OVERALL POLICY TOWARD JAPAN MIGHT HAVE TO TAKE STEPS THAT COULD IGNITE A TRADE WAR GIVEN THE PRESIDENT'S TOUGH TRADE RHETORIC SAID A SENIOR US TRADE OFFICIAL THE ADMINISTRATION WOULD HAVE FELT ENORMOUS PRESSURE TO PROCEED WITH SANCTIONS IF THE US SEMICONDUCTOR INDUSTRY HAD ASKED FOR THEM UNDER THE TERMS OF A 1990 SEMICONDUCTOR ACCORD JAPAN WAS SUPPOSED TO IMPORT 20 OF ITS COMPUTER CHIPS BY THE END OF 1992 OR FACE POSSIBLE SANCTIONS IN THE THIRD QUARTER OF 1992 US GOVERNMENT FIGURES SHOW THAT IMPORTS ACCOUNTED FOR ABOUT 16 WITH NEARLY ALL OF THAT FROM AMERICAN COMPANIES FINAL FIGURES FOR THE FOURTH QUARTER WON'T BE READY UNTIL MIDMARCH BUT HOWARD HIGH AN INTEL CORP SPOKESMAN SAID THE INDUSTRY EXPECTS IMPORT SHARE IN JAPAN TO HAVE RISEN BY ABOUT ONE PERCENTAGE POINT TO AROUND 17 UNTIL RECENTLY THE INDUSTRY HADN'T EXPECTED ANY INCREASE IN MARKET SHARE IF MARKET SHARE IS INCREASING MR HIGH SAID IT WILL BE HARD TO CALL FOR SANCTIONS AT LEAST UNTIL JUNE WHEN THE SEMICONDUCTOR INDUSTRY ASSOCIATION HOLDS A BOARD MEETING IN TOKYO MR HIGH ALSO IS CHAIRMAN OF THE SIA'S COMMUNICATIONS COMMITTEE BUT THE SEMICONDUCTOR TRADE GROUP DOES WANT CONGRESS AND THE ADMINISTRATION TO CONTINUE EXERTING PRESSURE ON JAPAN IF THE MARKET SHARE FIGURE TURNS OUT TO BE NO HIGHER THAN ABOUT 18 MR HIGH SAID SIA OFFICIALS ARE IN WASHINGTON FOR A BOARD MEETING THIS WEEK AND PLAN TO ASK OFFICIALS TO DRAW UP LISTS OF POSSIBLE RETALIATION TARGETS BUT NOT ACTUALLY APPLY THE SANCTIONS IF THE IMPORTSHARE INCREASES AS IS NOW EXPECTED COMMERCE SECRETARY RON BROWN ADDRESSES THE SEMICONDUTOR GROUP TODAY FOLLOWED BY US TRADE REPRESENTATIVE MICKEY KANTOR TOMORROW MR HIGH LISTED AS POSSIBLE TARGETS FOR RETALIATION POWER TOOLS BIGSCREEN TELEVISIONS AND AUTOMOBILES IF THE ADMINISTRATION EVENTUALLY APPROVED RETALIATION IT WOULD BE IN THE FORM OF HIGH TARIFFS PLACED ON SOME JAPANESE IMPORTS THE US SEMICONDUCTOR GROUP IS CLEARLY TRYING TO GET THE JAPANESE GOVERNMENT TO PRESS ITS CONSUMER ELECTRONICS AUTOMOBILE AND TELECOMMUNICATIONS INDUSTRY TO IMPORT MORE US CHIPS BY THE JUNE MEETING MR HIGH SAID THAT US COMPUTER CHIPS ACCOUNT FOR LESS THAN 10 OF THE CHIPS USED IN THOSE PRODUCTS SEMICONDUCTOR MAKERS FEAR THAT UNLESS JAPANESE COMPANIES START USING MORE US CHIPS IN CONSUMER ELECTRONICS PRODUCTS US MARKET SHARE WOULD DECREASE WHEN THE JAPANESE ECONOMY PICKS UP MR HIGH ATTRIBUTED THE INCREASED PACE OF JAPANESE CHIP IMPORTS TO THE INTRODUCTION OF LOWPRICED COMPUTERS BY SEVERAL JAPANESE COMPANIES INCLUDING NEC CORP THOSE COMPUTERS USE INTEL MICROPROCESSORS THE CHIPS THAT CONTROLS THE MAIN FUNCTIONS OF A COMPUTER ALONG WITH CHIPS PRODUCED BY OTHER US COMPANIES BUT HE SAID THAT IT WASN'T CLEAR WHETHER THE GAINS REPRESENTED A TREND OR SIMPLY AN EFFORT BY JAPAN TO PUMP UP SALES IN THE FOURTH QUARTER SEIICHIRO NOBORU MINISTER FOR ECONOMICS IN JAPAN'S US EMBASSY SAID THAT JAPAN DIDN'T CONSIDER THE 20 MARKETSHARE NUMBER TO BE A BINDING OBLIGATION HE SAID INTEL AND OTHER US SEMICONDUCTOR COMPANIES WERE HAPPY SELLING DOMESTICALLY BECAUSE PROFITS ARE GREATER IN THE US BUT MR HIGH SAID THE US SEMICONDUCTOR INDUSTRY WAS COMMITTED TO OPENING THE JAPANESE MARKET FURTHER 9303020094 930302 REYNOLDS & REYNOLDS BUYBACK DAYTON OHIO REYNOLDS & REYNOLDS CO SAID IT WILL REPURCHASE AS MANY AS 500000 SHARES OF ITS CLASS A COMMON STOCK OR 23 OF THE TOTAL OUTSTANDING IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REYNOLDS SHARES WERE QUOTED AT 32 UP 1 AT THAT PRICE THE BUYBACK BY THE MAKER OF BUSINESS FORMS WOULD BE VALUED AT AS MUCH AS 16 MILLION THE BUYBACK FOLLOWS A TWO MILLIONSHARE REPURCHASE LAST FALL 9303020093 930302 TOSCO WILL SELL UNIT TO CARGILL TO PREPARE FOR EXXON PURCHASE STAMFORD CONN TOSCO CORP IN AN EFFORT TO STREAMLINE ITS OPERATIONS BEFORE ACQUIRING A LARGE OIL REFINERY SAID IT AGREED TO SELL A FERTILIZER UNIT TO CARGILL CORP FOR 150 MILLION TOSCO SAID THE SALE OF SEMINOLE FERTILIZER CORP WHICH SHOULD BE COMPLETED DURING THE SECOND QUARTER WILL RESULT IN A LOSS OF ABOUT 105 MILLION ON ITS INITIAL INVESTMENT COMPANY OFFICIALS WEREN'T AVAILABLE TO ELABORATE TOSCO SAID IT WANTED TO SELL THE BARTOW FLA UNIT PARTLY BECAUSE OF ITS IMPENDING ACQUISITION OF EXXON'S BAYWAY REFINERY WHICH WILL DOUBLE THE COMPANY'S SIZE WITH THE NEW JERSEY REFINERY TOSCO WILL PRODUCE ABOUT 400000 BARRELS OF PETROLEUM PRODUCTS PER DAY TOSCO SAID SEMINOLE'S INTEREST IN THE FORT MEADE CHEMICAL PRODUCTS PARTNERSHIP IN FLORIDA WHICH IS ALSO FOR SALE ISN'T PART OF THIS TRANSACTION FOR MINNEAPOLISBASED CARGILL THE ACQUISITION OF SEMINOLE SHOULD ENHANCE THE FLORIDA PHOSPHATEFERTILIZER BUSINESS OF ITS CARGILL FERTILIZER INC UNIT NEARLY DOUBLING ITS YEARLY PRODUCTION OF PHOSPHORIC ACID PHOSPHORIC ACID IS A BASIC INGREDIENT OF PHOSPHATE FERTILIZERS SEMINOLE'S CAPABILITIES AND PRODUCT QUALITY COMPLEMENT THOSE OF OUR EXISTING OPERATIONS IN FORT MEADE AND TAMPA AND WILL BETTER POSITION US TO RESPOND COMPETITIVELY TO FUTURE DEMAND SAID FRITZ CORRIGAN PRESIDENT OF CARGILL'S WORLDWIDE FERTILIZER ACTIVITIES CARGILL WHICH IS CLOSELY HELD SAID FINALIZATION OF THE TRANSACTION WILL FOLLOW A DUEDILIGENCE EXAMINATION OF SEMINOLE'S PLANT PHOSPHATEROCK RESERVES AT THE SEMINOLE MINE AND TWO AMMONIASTORAGE TANKS IN FLORIDA AS WELL AS ENVIRONMENTAL SAFETY AND OTHER AUDITS CARGILL IS AN INTERNATIONAL MARKETER AND PROCESSOR OF AGRICULTURAL AND OTHER BULK COMMODITIES TOSCO IS AN INDEPENDENT REFINER OF PETROLEUM PRODUCTS 9303020092 930302 BROKERS SAY HOUSING MARKET IS STRONG DESPITE JANUARY'S 64 SALES DECLINE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF EXISTING SINGLEFAMILY HOMES FELL 64 IN JANUARY FROM DECEMBER'S 13YEAR HIGH BUT BROKERS SAY THE MARKET REMAINS STRONG SINGLEFAMILY HOMES SOLD IN JANUARY AT A SEASONALLY ADJUSTED ANNUAL RATE OF 38 MILLION DOWN FROM FOUR MILLION IN DECEMBER ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS HOWEVER THE JANUARY RATE REPRESENTS A 149 JUMP FROM THE YEARAGO PERIOD FOUR MILLION WAS REALLY NOT SUSTAINABLE IN THIS ECONOMY SAYS THE ASSOCIATION'S CHIEF ECONOMIST JOHN TUCCILLO I THINK WE'RE NOW AT A PACE WE CAN SUSTAIN UNTIL THE END OF THE YEAR FEDERAL NATIONAL MORTGAGE ASSOCIATION IS ALSO FORECASTING 1993 SALES OF ABOUT 38 MILLION WHICH WOULD CONSTITUTE THE HIGHEST NUMBER OF SALES SINCE 1979 ALL THE INDICATIONS ARE THAT THE HOUSING MARKETS ARE POPPING SAYS LYLE GRAMLEY A CONSULTING ECONOMIST FOR MORTGAGE BANKERS ASSOCIATION IN WASHINGTON WE'VE GOT MORTGAGE BANKERS IN TOWN THIS WEEK FOR A MEETING THEY ALL HAVE HUGE GRINS ON THEIR FACES DECEMBER SALES HAD SOARED AFTER INTEREST RATES PLUNGED AND CONSUMER CONFIDENCE ROSE IN THE WAKE OF THE ELECTION HOWEVER ACTIVITY MAY HAVE TAILED OFF A BIT IN JANUARY DUE TO WINTRY WEATHER IN THE EAST AND HEAVY RAIN IN CALIFORNIA BROKERS SAY THEY NOTE THAT MORE TRADEUP BUYERS ARE ENTERING THE MARKET WHICH WAS DOMINATED LAST YEAR BY FIRSTTIME BUYERS TAKING ADVANTAGE OF FALLING INTEREST RATES WE'RE SEEING IT SHIFT BACK TO A MORE NORMAL MARKET SAYS DAVID LINIGER CHIEF EXECUTIVE OFFICER OF RE/MAX INTERNATIONAL A NATIONAL BROKERAGE FIRM WITH HEADQUARTERS IN ENGLEWOOD COLO FIRSTTIMERS ACCOUNTED FOR NEARLY 50 OF ALL BUYERS LAST YEAR HE SAYS UP FROM ABOUT 30 DURING MOST RECENT YEARS BROKERS IN SOME AREAS SAY SUPPLIES ARE SHRINKING INVENTORY IS DOWN 35 TO 40 FROM WHAT IT WAS NINE OR 10 MONTHS AGO SAYS RICHARD CARLSON HEAD OF CARLSON REAL ESTATE IN WAKESFIELD MASS I THINK GIVEN A LITTLE MORE TIME WE ARE GOING TO SEE MOVEMENT UP IN PRICES THE MEDIAN SALES PRICE IN JANUARY WAS 103700 NATIONWIDE DOWN 05 FROM DECEMBER BUT UP 16 FROM A YEAR AGO THE REALTORS GROUP SAYS THE MEDIAN PRICE WAS 143300 IN THE WEST 134400 IN THE NORTHEAST 90400 IN THE SOUTH AND 82600 IN THE MIDWEST SEPARATELY THE FEDERAL DEPOSIT INSURANCE CORP'S JANUARY SURVEY OF BANK EXAMINERS FOUND THAT REAL ESTATE CONDITIONS IMPROVED MARKEDLY THROUGHOUT THE COUNTRY EXCEPT IN THE WEST WHERE CALIFORNIA DRAGGED DOWN THE REGION RESIDENTIAL REAL ESTATE CONDITIONS FIRMED ACROSS THE COUNTRY ACCORDING TO THE QUARTERLY SURVEY OF EXAMINERS AND PROPERTY LIQUIDATORS AT FEDERAL BANKING AGENCIES COMMERCIAL REAL ESTATE CONDITIONS WORSENED IN THE WEST BUT IMPROVED ELSEWHERE ALTHOUGH COMMERCIAL REAL ESTATE REMAINS IN EXCESS SUPPLY AROUND THE COUNTRY THE REPORT SAID REAL ESTATE CONDITIONS WERE BEST IN THE SOUTH FOLLOWED BY THE MIDWEST NORTHEAST AND WEST THE GREATEST IMPROVEMENT SINCE THE OCTOBER SURVEY CAME IN THE NORTHEAST THE FDIC REPORTED 9303020091 930302 FED SURVEY OF ECONOMISTS FINDS OUTLOOK IS BRIGHTER WASHINGTON PROSPECTS FOR ECONOMIC GROWTH THIS YEAR LOOK BRIGHTER THAN THEY DID JUST THREE MONTHS AGO ACCORDING TO A NEW SURVEY OF ECONOMIC FORECASTERS RELEASED BY THE FEDERAL RESERVE BANK OF PHILADELPHIA THE 34 FORECASTERS EXPECT THE ECONOMY TO GROW AT A 3 ANNUAL RATE IN THE CURRENT QUARTER AND A 29 PACE IN THE SECOND PERIOD UP FROM 24 AND 28 RESPECTIVELY IN THE EARLIER SURVEY FOR THE FULL YEAR THEY EXPECT GROWTH OF 31 SUBSTANTIALLY BETTER THAN THE 26 PROJECTION THEY MADE EARLIER THE FORECASTERS WERE SURVEYED BEFORE THE COMMERCE DEPARTMENT'S UPWARD REVISION FRIDAY OF FOURTHQUARTER GROWTH HIGHER GROWTH IN 1993 WON'T COME AT THE EXPENSE OF HIGHER INFLATION THE FORECASTERS TOLD THE PHILADELPHIA FED THEY EXPECT CONSUMER PRICES TO CLIMB 32 IN 1993 AND 34 IN 1994 OVER THE NEXT DECADE THE ECONOMISTS EXPECT INFLATION TO AVERAGE 35 DOWN FROM 36 IN LAST QUARTER'S SURVEY AND THE THIRD CONSECUTIVE QUARTERLY SURVEY IN WHICH INFLATION EXPECTATIONS HAVE FALLEN THE FORECASTERS SEE SHORTTERM INTEREST RATES BOTTOMING OUT IN THE FIRST HALF OF 1993 BUT RISING THEREAFTER THREEMONTH TREASURY BILL YIELDS NOW AROUND 3 ARE EXPECTED TO RISE TO 37 BY THE EARLY PART OF 1994 9303020090 930302 BUSINESS BRIEF ROCKEFELLER CENTER PROPERTIES INC COURT APPROVES SETTLEMENT OF LAWSUIT AGAINST REIT ROCKEFELLER CENTER PROPERTIES INC SAID A STATE COURT APPROVED ITS PREVIOUSLY ANNOUNCED SETTLEMENT OF A CLASSACTION LAWSUIT THAT HAD CHARGED IT WITH MAKING FALSE STATEMENTS THE NEW YORK REAL ESTATE INVESTMENT TRUST SAID THE SETTLEMENT IS SUBSTANTIALLY THE SAME AS WHEN IT WAS ANNOUNCED LAST YEAR EXCEPT FOR ALTERED TERMS OF WARRANTS TO BE ISSUED TO MEMBERS OF THE PLAINTIFF CLASS SPECIFICALLY THE WARRANTS FOR ABOUT THREE MILLION SHARES WILL NOW BE FULLY TRANSFERABLE AND EXERCISABLE FOR 30 DAYS AFTER THEY ARE ISSUED AT A 12 DISCOUNT TO THE AVERAGE CLOSING PRICE OF ROCKEFELLER CENTER PROPERTIES SHARES IN THE 30DAY PERIOD PRIOR TO THE WARRANTS' ISSUANCE AS BEFORE ROCKEFELLER CENTER PROPERTIES AGREED TO BOOST THE SECURITY FOR THE LOAN THAT CONSTITUTES ITS PRINCIPAL ASSET IT WILL PROVIDE A HIGHER COLLATERAL AMOUNT AND ADD MORE SPACE FOR DEVELOPMENT RIGHTS AT ROCKEFELLER CENTER TO THE MORTGAGE 9303020089 930302 WHO'S NEWS US SHOE NAMES SEARLES TO TWO POSTS AT AN APPAREL UNIT CINCINNATI US SHOE CORP NAMED MICHAEL M SEARLES A TOYS R US INC EXECUTIVE TO HEAD ITS FLOUNDERING WOMEN'S APPAREL UNIT MR SEARLES 43 YEARS OLD SUCCEEDS NOEL DAVIDSON 62 AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UNIT MR DAVIDSON WAS NAMED CHAIRMAN AND CHIEF OPERATING OFFICER OF THE DIVISION BUT WILL REPORT TO MR SEARLES AS PRESIDENT OF TOYS R US'S CHILDREN'S APPAREL CHAIN MR SEARLES HELPED BUILD THE CHAIN TO 211 STORES WITH 700 MILLION IN ANNUAL SALES FROM FOUR STORES IN 1984 MR SEARLES WAS UNAVAILABLE FOR COMMENT IT SOUNDS LIKE A REAL POSITIVE MOVE SAID BRETT BRUBAKER AN ANALYST WITH ABRAHAM & SONS INC IN CHICAGO TOYS 'R' US IS AN ORGANIZATION THAT'S OBVIOUSLY BEEN SUCCESSFUL MR SEARLES FACES A DAUNTING CHALLENGE THE COMPANY'S WOMEN'S APPAREL DIVISION ITS BIGGEST SALES GENERATOR HAS STUMBLED ABOUT WITH LITTLE DIRECTION OVER THE PAST YEAR ITS CASUAL CORNER CHAIN MADE YET ANOTHER MERCHANDISING FLIPFLOP LAST FALL WHEN IT STARTED EMPHASIZING DRESSY SKIRTS AND JACKETS INSTEAD OF WEEKEND WEAR ANALYSTS CONTEND THE CONSTANT CHANGES HAVE ALIENATED CUSTOMERS 9303020087 930302 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 4 HIGH 3 1/2 LOW 4 NEAR CLOSING BID 4 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 CORP3 30 TO 34 DAYS 310 35 TO 149 DAYS 313 150 TO 179 DAYS 315 180 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 312 30 DAYS 313 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 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 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 301 60 DAYS 302 90 DAYS 304 120 DAYS 307 150 DAYS 308 180 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 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 720 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 720 60 DAYS 730 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303020086 930302 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 17 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9303020085 930302 BUSINESS BRIEF WAHLCO ENVIRONMENTAL SYSTEMS INC CREDIT FACILITY INVESTMENT OF 7 MILLION ARE SECURED WAHLCO ENVIRONMENTAL SYSTEMS INC SANTA ANA CALIF SAID IT NEGOTIATED A NEW CREDIT FACILITY WITH BANK OF AMERICA AND RECEIVED 7 MILLION IN FRESH INVESTMENT FROM SAN DIEGO GAS & ELECTRIC CO WHICH HOLDS AN 80 STAKE IN THE COMPANY WAHLCO WHICH HAS HAD FOUR CONSECUTIVE QUARTERLY LOSSES HAS BEEN NEGOTIATING WITH BANK OF AMERICA FOR SOME TIME ON DETAILS OF THE NEW 29 MILLION CREDIT FACILITY SAID HENRY HUTA PRESIDENT CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER MR HUTA SAID THE 7 MILLION INJECTION BY A UNIT OF SAN DIEGO GAS WAS PART OF THE PACKAGE UNDER WHICH THE BANK AGREED TO THE FINANCING WHICH SUPPLANTS A SLIGHTLY LARGER FACILITY THAT EXPIRED AT THE END OF LAST YEAR WAHLCO MAKES VARIOUS EQUIPMENT FOR ELECTRIC POWER PLANTS INCLUDING DEVICES THAT HELP POLLUTION CONTROL 9303020084 930302 BUSINESS BRIEF KOGER EQUITY INC NEW REORGANIZATION PLAN IS FILED FOR KOGER PROPERTIES KOGER EQUITY INC AND KOGER PROPERTIES INC SAID THEY FILED AN AMENDED AND RESTATED REORGANIZATION PLAN IN KOGER PROPERTIES' BANKRUPTCY KOGER PROPERTIES FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN 1991 BOTH CONCERNS ARE BASED IN JACKSONVILLE FLA THE PLAN CALLS FOR KOGER PROPERTIES TO BE MERGED INTO KOGER EQUITY A REAL ESTATE INVESTMENT TRUST KOGER EQUITY WOULD ACQUIRE THE 18 MILLION SHARES OF ITS COMMON STOCK CURRENTLY HELD BY KOGER PROPERTIES OR ABOUT 135 OF THE SHARES OUTSTANDING IN ADDITION KOGER EQUITY WOULD ACQUIRE ALMOST ALL OF THE REMAINING BUILDINGS OWNED BY KOGER PROPERTIES AND IT WILL ASSUME CERTAIN DEBT OF KOGER PROPERTIES RELATED TO THE BUILDINGS WHEN THE MERGER IS FINISHED KOGER EQUITY WILL ISSUE ADDITIONAL SHARES OF ITS COMMON STOCK TO THE FORMER UNSECURED CREDITORS OF KOGER PROPERTIES KOGER EQUITY WILL ISSUE ONE WARRANT IN EXCHANGE FOR EACH 50 SHARES OF KOGER PROPERTIES COMMON STOCK KOGER EQUITY SAID IT WILL SUBMIT THE MERGER PLAN TO ITS SHAREHOLDERS FOR APPROVAL AT A MEETING EXPECTED IN LATE SPRING OR SUMMER 9303020083 930302 BUSINESS BRIEF UNUM CORP SEC CLEARS STOCK ISSUANCE AS PART OF MERGER ACCORD UNUM CORP SAID THE SECURITIES AND EXCHANGE COMMISSION CLEARED IT TO ISSUE STOCK TO COLONIAL COS SHAREHOLDERS AS PART OF THE COMPANIES' PREVIOUSLY ANNOUNCED MERGER AGREEMENT BASED ON THE CURRENT PRICE OF UNUM STOCK THE TRANSACTION WOULD HAVE A VALUE OF ABOUT 614 MILLION THE COMPANIES AGREED IN DECEMBER TO A MERGER UNDER WHICH UNUM WOULD EXCHANGE 0731 COMMON SHARE FOR EACH OUTSTANDING COLONIAL CLASS A AND CLASS B COMMON SHARE COLONIAL CURRENTLY HAS ABOUT 19 MILLION CLASS A COMMON SHARES AND 137 MILLION CLASS B NONVOTING COMMON SHARES OUTSTANDING COLONIAL A COLUMBIA SC INSURER SAID IT SET A MARCH 26 MEETING FOR CLASS A HOLDERS TO VOTE ON THE PROPOSED MERGER 9303020082 930302 BUSINESS BRIEF QUANTUM CORP COMPANY FILES SUIT AGAINST RODIME IN PATENT DISPUTE QUANTUM CORP SAID IT FILED A LAWSUIT AGAINST RODIME PLC IN A PATENT DISPUTE RELATED TO THE DESIGN OF ONE OF ITS COMPUTER DISK DRIVES QUANTUM A MILPITAS CALIF DISKDRIVE MANUFACTURER SAID IT FILED THE SUIT IN US DISTRICT COURT IN MINNEAPOLIS MINN TO COUNTER CLAIMS MADE BY THE GLASGOW SCOTLAND COMPANY THAT A 35INCH QUANTUMMADE DISK DRIVE INFRINGES ON A RODIME PATENT QUANTUM DENYING ANY PATENT INFRINGEMENT SAID IT IS ASKING THAT RODIME'S PATENT BE DECLARED INVALID PETER BAILEY A RODIME MANAGING DIRECTOR SAID RODIME HASN'T YET DECIDED HOW TO RESPOND WE WILL REVIEW OUR ALTERNATIVES QUITE CAREFULLY HE SAID RODIME HAS ALSO SAID IT FILED A LAWSUIT RELATED TO THE SAME PATENT AGAINST SEAGATE TECHNOLOGY INC OF SCOTTS VALLEY CALIF 9303020081 930302 LEISURE & ARTS BUSINESS BOOKSHELF WOMEN AND MONEY BY STANLEY W ANGRIST WHY DO SO MANY WOMEN REMAIN IGNORANT ABOUT FINANCES SHELBY WHITE AUTHOR OF WHAT EVERY WOMAN SHOULD KNOW ABOUT HER HUSBAND'S MONEY TURTLE BAY BOOKS 262 PAGES 22 SAYS THERE ARE AT LEAST TWO REASONS FREQUENTLY THE WOMAN MAKES LESS MONEY THAN HER HUSBAND AND FEELS SHE DOESN'T HAVE A RIGHT TO PARTICIPATE IN FINANCIAL AFFAIRS THE OTHER REASON IS LAZINESS IT'S EASIER TO LET SOMEONE ELSE HANDLE THE RESPONSIBILITY NEITHER REASON IS ADEQUATE OR APPROPRIATE IN TODAY'S WORLD IF A WOMAN STAYS MARRIED SHE'LL PROBABLY OUTLIVE HER HUSBAND NEARLY FOUR TIMES MORE WOMEN THAN MEN OUTLIVE THEIR SPOUSES IF A WOMAN DIVORCES HER EX WILL PROBABLY CONTINUE TO EARN MORE THOUGH SHE WILL PROBABLY HAVE CUSTODY OF THE CHILDREN THE OLDER A WOMAN IS AND THE BETTER EDUCATED THE FEWER CHANCES SHE HAS TO REMARRY UNLIKE HER EX SO IT PAYS TO BE PREPARED AND MS WHITE WHO WAS WIDOWED AT AGE 30 WITH AN INFANT CHILD SAYS THERE ARE PLENTY OF THINGS YOU CAN DO TO PROTECT YOURSELF AGAINST THE RUDE TRIPLE WHAMMY OF AGE DEATH AND DIVORCE FIRST OF ALL A WOMAN SHOULD CONSIDER WHAT WILL HAPPEN TO HER INCOME AT RETIREMENT WHETHER OR NOT HER HUSBAND IS AROUND MS WHITE POINTS OUT THAT EVERY WOMAN SHOULD HAVE HER OWN PENSION PLAN WHETHER OR NOT SHE IS WORKING EVEN IF HER HUSBAND'S INCOME IS TOO HIGH TO ALLOW THE CONTRIBUTION TO BE USED TO REDUCE A FAMILY'S TAXABLE INCOME IT WILL STILL GROW WITH ALL EARNINGS TAXDEFERRED MS WHITE ALSO NOTES THAT THE LAW REQUIRES BOTH HUSBAND AND WIFE TO DECIDE JOINTLY ON HOW A PENSION FOR EITHER ONE OF THEM IS TO BE PAID IT CALLS FOR PENSION BENEFITS TO BE PAID OUT AS EITHER A JOINT AND SURVIVOR BENEFIT OR AS A SINGLE BENEFIT WITH THE LATTER LARGER THAN THE FORMER THE IMPORTANT POINT TO NOTE IS THAT A SINGLE BENEFIT STOPS WITH THE DEATH OF THE WORKER SOME FINANCIAL PLANNERS SUGGEST THAT A COUPLE ELECT THE LARGER SINGLE BENEFIT RATHER THAN THE JOINT AND SURVIVOR BENEFIT AND THEN SPEND SOME OF THE MONEY ON AN INSURANCE POLICY ON THE LIFE OF THE HUSBAND WITH THE WIFE AS THE BENEFICIARY MS WHITE POINTS OUT SEVERAL FLAWS IN THIS PLAN FIRST THE INSURANCE MIGHT COST MORE THAN ESTIMATED AND SO THE POLICY IS SMALLER THAN EXPECTED OR THE HUSBAND MIGHT NOT GET AROUND TO BUYING THE POLICY OR HE MIGHT FIND HIMSELF UNINSURABLE OR HE MIGHT DECIDE TO QUIT PAYING THE PREMIUM AFTER A FEW YEARS ANY OF THESE EVENTS COULD LEAVE A WOMAN IN A WOEFUL CONDITION THE BOOK ALSO OFFERS INFORMATION USEFUL TO YOUNGER WOMEN SPECIFICALLY MS WHITE PROVIDES SOME GUIDELINES TO WOMEN ON PRENUPTIAL AGREEMENTS BASICALLY MAKE SURE YOU HAVE YOUR OWN LAWYER TO HELP NEGOTIATE THE AGREEMENT THEN NOTING THAT EVEN THE DONALD ENCOUNTERED SOME SERIOUS FINANCIAL SLEDDING SHE SUGGESTS THAT ANTICIPATING ASSET EROSION IS ALSO WISE ASK THAT MONEY BE PUT INTO ESCROW FOR YOU OR ASK THAT YOUR HUSBANDTOBE PURCHASE A NONCANCELABLE LIFE INSURANCE POLICY AT THE SAME TIME SHOW YOUR FUTURE MATE YOUR FINANCIAL RECORDS AND EXPECT TO SEE HIS DECIDE TO WHAT EXTENT TO POOL THE THINGS YOU OWN BUT MAKE SURE YOU HAVE AT LEAST SOME MONEY AND CREDIT ESTABLISHED IN YOUR OWN NAME DECIDE HOW TO DIVIDE UP EXPENSES IF THERE IS A GREAT DISPARITY IN INCOMES 5050 PROBABLY WILL NOT WORK IF YOU HAVE PROPERTY FROM BEFORE YOUR MARRIAGE THINK CAREFULLY ABOUT WHETHER YOU WANT TO PUT IT IN BOTH NAMES MS WHITE SAYS THE BIGGEST MISTAKE WOMEN MAKE IS NEVER DISCUSSING MONEY WITH THEIR SPOUSES BECAUSE IT'S NOT ROMANTIC GOING ON PUBLIC ASSISTANCE ISN'T EITHER AND THAT'S WHERE MANY WOMEN FIND THEMSELVES BECAUSE THEY REMAINED IN IGNORANT FINANCIAL BLISS SOME OF THE SAME GROUND IS COVERED IN OUR MONEY OUR SELVES MONEY MANAGEMENT FOR EACH STAGE OF A WOMAN'S LIFE CONSUMER REPORTS BOOKS 247 PAGES 1695 WRITTEN BY GINITA WALL A CERTIFIED PUBLIC ACCOUNTANT AND FINANCIAL PLANNER AND THE EDITORS OF CONSUMER REPORTS BOOKS IN CHRONOLOGICAL ORDER THE BOOK MOVES FROM THE FINANCIAL INDEPENDENCE OF A FIRST JOB THROUGH SHARING LIFE WITH A PARTNER INVESTING FOR THE FUTURE BECOMING DIVORCED OR WIDOWED AND BEING SELFSUPPORTING IN RETIREMENT FOR EXAMPLE THE BOOK INCLUDES TIPS ON HOW TO BEGIN A LIFELONG HABIT OF BUDGETING A WORD AS PLEASANT AS DIETING AND SAVING FOR SPECIFIC FINANCIAL GOALS IT ALSO SHOWS HOW TO CREATE A STRONG CREDIT HISTORY AND OVERCOME CREDIT CRISES THAT MAY INTERVENE JANE WHITE IN A FEW GOOD WOMEN PRENTICEHALL 229 PAGES 1995 PROFILES 11 WOMEN WHO HAVE MADE IT BIG IN CORPORATE LIFE THEY ALL HAD TO OVERCOME OBSTACLES THAT MOST WORKING WOMEN HAVE ENCOUNTERED AT ONE TIME OR ANOTHER MS WHITE ALSO GAINS INSIGHTS FROM HER SUBJECTS ON MATTERS SUCH AS WHY THERE ARE ONLY THREE FEMALE CHIEF EXECUTIVE OFFICERS IN THE FORTUNE 1000 COMPANIES OR WHY ONLY ONEHALF OF 1 OF TODAY'S HIGHEST PAID OFFICERS OF TOP PUBLIC COMPANIES ARE WOMEN SHE POINTS OUT THAT THERE ARE MORE FEMALES AT THE HELM OF SHIPS OF STATE THAN CAPTAINS OF INDUSTRIES CREDIT OR BLAME THE SELECTION PROCESS MS WHITE WRITES THE FIRST IS DEMOCRATIC THE SECOND AUTOCRATIC THE BOOK ALSO EXPLODES MANY OF THE MYTHS ABOUT WOMEN IN THE WORK FORCE ONE COMMON BELIEF IS THAT BARRIERS KEEPING WOMEN FROM TOP MANAGEMENT WILL BE CRACKED EVENTUALLY JUST GIVE IT MORE TIME MS WHITE SAYS THIS IS BALONEY WHAT IS NEEDED SHE WRITES ISN'T TIME BUT MORE COURAGEOUS MEN WHO ARE WILLING TO STICK THEIR NECKS OUT AND REWARD COMPETENCE WITHOUT REGARD TO GENDER 9303020080 930302 RJR NABISCO SETS NEW CLASS OF ITS STOCK SHARES WOULD BE PEGGED TO THE FOOD BUSINESS FIRM TO PAY DIVIDENDS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL RJR NABISCO HOLDINGS INC FACED WITH MOUNTING SHAREHOLDER IMPATIENCE OVER ITS STAGNANT SHARE PRICE IS EXPECTED TO ANNOUNCE TODAY PLANS TO CREATE A SEPARATE CLASS OF STOCK PEGGED TO THE PERFORMANCE OF ITS 67 BILLION NABISCO FOOD BUSINESS THE FOOD AND TOBACCO GIANT'S SHARES HAVE BEEN MIRED BELOW 9 DOWN ABOUT 20 FROM ITS 52WEEK HIGH YESTERDAY RJR CLOSED AT 8375 DOWN 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE UNDER THE PLAN WHICH RJR HAS BEEN CONTEMPLATING FOR SEVERAL MONTHS THE COMPANY WOULD ALSO BEGIN PAYING REGULAR CASH DIVIDENDS FOR ITS EXISTING SHARES AND THE NEW FOODRELATED ISSUE THE COMPANY CURRENTLY DOESN'T PAY A DIVIDEND ON ITS SHARES COMPANY OFFICIALS SAID THE PLAN IS AIMED AT INCREASING SHAREHOLDER VALUE BUT PEOPLE CLOSE TO THE COMPANY SAID IT WAS DEVELOPED UNDER PRESSURE FROM AN INCREASINGLY RESTIVE KOHLBERG KRAVIS ROBERTS & CO RJR'S LARGEST SHAREHOLDER THE BUYOUT FIRM ACQUIRED THE FOOD AND TOBACCO GIANT IN 1989 AND KKR PARTNERSHIPS OWN 504 OF THE COMPANY'S COMMON SHARES KKR DECLINED TO COMMENT IN AN INTERVIEW RJR'S CHIEF FINANCIAL OFFICER KARL M VON DER HEYDEN SAID BY CREATING TWO PURE PLAYS FOR INVESTORS ONE PURE FOOD PLAY AND ONE PURE TOBACCO PLAY WE FEEL WE HAVE CREATED SOME VERY INTERESTING INVESTMENT VEHICLES HE ADDED THERE ARE NOT TOO MANY PURE FOOD PLAYS AROUND AND I DON'T THINK THERE ARE ANY PURE TOBACCO PLAYS THE RJR PLAN IS A COMPLEX ONE THAT MAY NOT BE COMPLETED UNTIL THE END OF THE YEAR UNDER THE PLAN FOR EACH SHARE OWNED CURRENT SHAREHOLDERS OF RJR WILL GET AN ADDITIONAL ONEEIGHTH OF A SHARE IN THE FOOD COMPANY AND DIVIDENDS VALUED AT A TOTAL OF 44 CENTS A YEAR RJR NABISCO WILL REMAIN ONE CORPORATION AND THE PLAN WILL NOT AFFECT THE RIGHTS OF ANY OF THE COMPANY'S DEBT HOLDERS OR CREDITORS THE COMPANY SAID THE CREATION OF THE NEW FOODRELATED ISSUE TO BE CALLED RNNABISCO GROUP STOCK WOULD ENABLE KKR AND OTHER SHAREHOLDERS TO TAKE ADVANTAGE OF THE HIGHER MULTIPLES ASSIGNED TO FOOD COMPANIES THAN TO TOBACCO STOCKS TOBACCO STOCKS CURRENTLY SELL AT ABOUT 10 TIMES ESTIMATED 1993 PERSHARE EARNINGS WELL BELOW THE 17TIMESEARNINGS VALUE FOR FOOD COMPANIES ALSO THE MOVE IS DESIGNED TO HELP PAY OFF DEBT AND ATTRACT NEW INVESTORS TO THE COMPANY MANY PENSIONFUND MANAGERS WILL ONLY BUY STOCKS THAT PAY DIVIDENDS AND SOME INVESTORS REFUSE TO OWN TOBACCO SHARES FOR MORAL REASONS THE TOBACCO BUSINESS HURT BY THE RISE IN POPULARITY OF LOWPROFIT DISCOUNT CIGARETTES HAS BEEN HIT BY A BARRAGE OF BAD NEWS LATELY INCLUDING THE PROSPECTS OF HIGHER TOBACCO TAXES TO PAY FOR HEALTHCARE REFORM AND A RECENT ENVIRONMENTAL PROTECTION AGENCY REPORT ON THE DANGERS OF SECONDHAND SMOKE THE FIRST STEP OF THE TRANSACTION WILL BE A PUBLIC OFFERING OF 93 MILLION NEWLY ISSUED SHARES OF NABISCO GROUP STOCK REPRESENTING 25 OF THE EQUITY IN THE FOOD BUSINESS THE SHARES ARE EXPECTED TO SELL FOR ABOUT 18 EACH AND WILL PAY A QUARTERLY DIVIDEND OF 13 CENTS A SHARE THE OFFERING IS EXPECTED TO RAISE ABOUT 16 BILLION THAT WILL BE USED TO PAY OFF RJR DEBT THE COMPANY PLANS TO RECLASSIFY ITS EXISTING COMMON STOCK AS RNREYNOLDS GROUP STOCK THE REYNOLDS STOCK WILL CARRY A QUARTERLY DIVIDEND OF EIGHT CENTS A SHARE PLUS AN ADDITIONAL DIVIDEND OF THREE CENTS A SHARE FOR ITS INTEREST IN THE FOOD COMPANY SIX MONTHS AFTER THE NABISCO OFFERING RJR PLANS TO ISSUE TO HOLDERS OF THE REYNOLDS GROUP 142 MILLION SHARES OF NABISCO GROUP STOCK THE COMPANY THEN PLANS TO REDUCE THE NUMBER OF SHARES OUTSTANDING IN THE REYNOLDS GROUP THROUGH A REVERSE STOCK SPLIT UNDER THE REVERSE SPLIT EACH SHARE OF RJR STOCK WILL BE EXCHANGED FOR ONETHIRD OF A SHARE OF REYNOLDS STOCK AND ONEEIGHTH OF A SHARE OF NABISCO STOCK INVESTORS HAVE BEEN BADGERING RJR ABOUT DIVIDENDS FOR SEVERAL MONTHS BUT SUCH A MOVE WAS NOT EXPECTED FOR AT LEAST A YEAR THE COMPANY SAYS THE CASH TO FINANCE THE DIVIDENDS WOULD COME FROM AN INCREASED CASH FLOW AS A RESULT OF RJR'S SHRINKING INTEREST BILL AFTER THE BUYOUT RJR HAD 296 BILLION IN DEBT RESULTING IN A 3 BILLION INTEREST PAYMENT IN 1990 THE COMPANY CURRENTLY HAS 142 BILLION IN DEBT AND LAST YEAR PAID 14 BILLION IN INTEREST THE SMALLER DEBT PAYMENTS COUPLED WITH THE TREMENDOUS CASH FLOW OF THE TOBACCO BUSINESS GIVES RJR AN ESTIMATED 15 BILLION IN FREE CASH FLOW THIS YEAR NABISCO WITH A PANTRY FULL OF BRANDS INCLUDING FIG NEWTONS RITZ CRACKERS GREY POUPON AND LIFESAVERS ACCOUNTS FOR ABOUT 40 OF RJR'S SALES AND 25 OF PROFITS REYNOLDS TOBACCO BUSINESS INCLUDES THE CAMEL WINSTON AND SALEM BRANDS FOR 1992 RJR REPORTED PROFIT OF 299 MILLION OR 20 CENTS A SHARE INCLUDING A 513 MILLION CHARGE LARGELY FOR THE REPURCHASE AND RETIREMENT OF HIGHCOST DEBT SALES WERE 1573 BILLION PHILIP MORRIS COS THE OTHER BIG FOOD AND TOBACCO CONGLOMERATE HAS BEEN UNDER PRESSURE FROM THE SAME FORCES WEIGHING DOWN RJR STOCK THE COMPANY'S STOCK HAS LOST NEARLY 25 OF ITS VALUE SINCE AUTUMN A PHILIP MORRIS SPOKESMAN SAID THE COMPANY IS NOT CONSIDERING A SIMILAR TRANSACTION 9303020078 930302 BUSINESS BRIEF MICROSEMI CORP CONCERN FAILS TO PAY INTEREST OF 33 MILLION ON DEBENTURES MICROSEMI CORP WHICH LAST WEEK SAID IT WAS FACING A CASH CRUNCH SAID IT FAILED TO MAKE A MARCH 1 INTEREST PAYMENT ON ABOUT 33 MILLION OF 5875 CONVERTIBLE SUBORDINATED DEBENTURES INVOKING WHAT THE COMPANY SAID IS A 30DAY GRACE PERIOD MICROSEMI BASED IN SANTA ANA CALIF SAID IT IS IN DISCUSSION WITH ITS BANKS AS WELL AS A CURRENT INVESTOR IN THE COMPANY AND THAT IT IS CONFIDENT THAT IT WILL MAKE THE PAYMENT WITHIN 30 DAYS A MAKER OF SEMICONDUCTORS AND SURFACEMOUNT ASSEMBLIES FOR ELECTRONIC CIRCUITS MICROSEMI REPORTED NET INCOME OF 248000 OR 3 CENTS A SHARE ON 305 MILLION IN SALES FOR THE FISCAL FIRST QUARTER ENDED JAN 3 9303020077 930302 INTERNATIONAL CANADA'S GDP GREW IN QUARTER AT 35 RATE BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S ECONOMIC RECOVERY PICKED UP SPEED IN THE 1992 FOURTH QUARTER LED BY STRONG EXPORTS TO THE US THE GROSS DOMESTIC PRODUCT OR TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES ROSE AT AN ANNUAL RATE OF 35 IN THE OCTOBERDECEMBER PERIOD STATISTICS CANADA A GOVERNMENT AGENCY SAID IN THE THIRD QUARTER GDP INCREASED AT AN ANNUAL RATE OF 12 STATISTICS CANADA ATTRIBUTED THE FOURTHQUARTER ADVANCE ENTIRELY TO EXPORTS PRINCIPALLY TO THE US CANADA'S SALES TO THE US HAVE BEEN SPURRED BY THE US ECONOMIC RECOVERY AND A DROP IN THE CANADIAN DOLLAR AGAINST ITS US COUNTERPART THE CANADIAN DOLLAR WAS QUOTED LATE YESTERDAY AT 8008 US CENTS OFF 5 FROM ITS LEVEL A YEAR AGO LED BY EXPORTS CANADA'S ECONOMIC RECOVERIES ARE USUALLY LED BY AN UPSWING IN EXPORTS TO THE US ITS MAIN TRADING PARTNER CANADA'S EXPORTS TO THE US IN 1992 ROSE 136 TO 12229 BILLION CANADIAN DOLLARS US9793 BILLION OR 776 OF CANADA'S TOTAL EXPORTS STATISTICS CANADA SAID CANADIAN DOMESTIC DEMAND DECLINED SLIGHTLY IN THE FOURTH QUARTER PARTLY AS A RESULT OF A 21 REDUCTION IN BUSINESS INVESTMENT IN PLANT AND EQUIPMENT BUT ANALYSTS PREDICTED THAT DOMESTIC DEMAND WOULD STRENGTHEN IN COMING MONTHS ENCOURAGED BY STRONG EXPORT SALES AND A STEADY DECLINE IN CANADIAN INTEREST RATES NEIL JOHNSON CHIEF ECONOMIST AT THE SECURITIES COMPANY OF NESBITT THOMSON INC SAID SHORTTERM CANADIAN RATES COULD DROP A FURTHER PERCENTAGE POINT IN COMING MONTHS THEY HAVE DECLINED ALMOST THREE PERCENTAGE POINTS SINCE LATE NOVEMBER REDUCING SIGNIFICANTLY THE DEBT SERVICE COSTS OF CONSUMERS ROBERT FAIRHOLM SENIOR ECONOMIST AT DRI CANADA AN ECONOMIC CONSULTING CONCERN PREDICTED THAT THE CANADIAN ECONOMY WOULD STRENGTHEN IN THE CURRENT QUARTER AS A RESULT OF CONTINUED GROWTH IN EXPORTS AND A MODEST PICKUP IN DOMESTIC CONSUMPTION BUT HE SAID HE SAW ONLY A SLOW DECLINE IN CANADA'S UNEMPLOYMENT RATE CURRENTLY 11 OF THE WORK FORCE HE SAID THE JOBLESS RATE WOULD BE A COUPLE OF PERCENTAGE POINTS HIGHER IF THOUSANDS OF CANADIANS HADN'T WITHDRAWN FROM THE LABOR FORCE BECAUSE OF THE POOR JOB MARKET STATISTICS CANADA SAID THE IMPLICIT PRICE INDEX A BROAD INDICATOR OF PRICE CHANGES DECLINED 02 IN THE FOURTH QUARTER FROM THE PREVIOUS THREE MONTHS THE INDEX INCREASED 1 IN 1992 DOWN FROM A 27 INCREASE IN 1991 SEPARATELY STATISTICS CANADA REPORTED THAT THE DEFICIT ON THE CURRENT ACCOUNT OF CANADA'S INTERNATIONAL BALANCE OF PAYMENTS NARROWED IN THE FOURTH QUARTER TO C651 BILLION FROM C756 BILLION IN THE THIRD QUARTER THE CURRENT ACCOUNT IS A FINANCIAL ACCOUNTING OF TRADE IN GOODS AND SERVICES IT ALSO INCLUDES CERTAIN INTERNATIONAL CAPITAL MOVEMENTS INCLUDING INTEREST AND DIVIDEND PAYMENTS 9303020076 930302 BUSINESS BRIEF ADAMS RESOURCES & ENERGY INC RESULTS FOR FOURTH QUARTER REVISED TO LOSS FROM PROFIT ADAMS RESOURCES & ENERGY INC SAID AN ACCOUNTING ADJUSTMENT FOR INSURANCE EXPENSES CAUSED IT TO REVISE FOURTHQUARTER RESULTS AND POST A LOSS OF 493000 OR 12 CENTS A SHARE THE HOUSTON ENERGY COMPANY HAD REPORTED FOURTHQUARTER NET INCOME OF 72000 OR TWO CENTS A SHARE ON REVENUE OF 1689 MILLION FOR THE YEAR AFTER ACCOUNTING FOR THE INCREASED INSURANCE EXPENSE ADAMS HAD EARNINGS OF 4152000 OR 1 A SHARE COMPARED WITH THE PREVIOUSLY REPORTED PROFIT OF 5010000 OR 120 A SHARE REVENUE WAS 5501 MILLION ADAMS SAID THE HIGHER COSTS WERE BELATEDLY REPORTED BY ITS FORMER INSURER WHICH IT DECLINED TO NAME THEY WERE FROM WORKERSCOMPENSATION AND AUTOMOBILEACCIDENT CLAIMS INVOLVING THE COMPANY'S TRUCKS IN 1989 AND 1990 ADAMS STOCK FELL 125 CENTS TO CLOSE AT 475 A SHARE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9303020075 930302 PHILANTHROPY FUNDRAISERS' OWN FUNDS ARE RISING BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SCARCER THE FUNDS THE DEARER THE FUNDRAISER AS CHARITIES FIERCELY COMPETE FOR DONOR DOLLARS SOME BIG INSTITUTIONS ARE UPGRADING THE FUNDRAISER JOB WHILE MANY SMALLER GROUPS SEEK A MIRACLE WORKER WHO CAN PULL IN BADLY NEEDED DOLLARS SALARIES DEFINITELY HAVE BEEN INCREASING AND THERE ARE SOME POSITIVE AND SOME NEGATIVE REASONS FOR THAT SAYS PATRICIA LEWIS PRESIDENT OF THE NATIONAL SOCIETY OF FUND RAISING EXECUTIVES ON THE PLUS SIDE SHE NOTES THAT DEMAND HAS HELPED ADVANCE THE PROFESSIONAL STATUS OF DEVELOPMENT OFFICERS AS THE FUNDRAISER TITLE IS CALLED DEMAND HAS ALSO HELPED SWELL THE RANKS THE SOCIETY'S MEMBERSHIP OF 13813 LAST YEAR WAS UP 16 FROM 1990 RECESSION HAS REDUCED DISCRETIONARY INCOME AND LAST YEAR'S SPENDING SCANDAL AT UNITED WAY OF AMERICA ERODED DONOR CONFIDENCE CAUSING MANY CHARITIES TO WORK EVEN HARDER ON FINDING DONORS ON THE DOWNSIDE SOME ORGANIZATIONS HAVE BECOME SO DESPERATE TO GENERATE FUNDS THEY'LL DO JUST ABOUT ANYTHING TO PAY SOMEONE TO COME IN SAYS MS LEWIS THE FUNDRAISING PROFESSION GOT A MAJOR BOOST IN THE 1980S AFTER THE SOCIALPROGRAM CUTS INSTITUTED BY THE REAGAN ADMINISTRATION MADE CHARITABLE GIFTS MORE CRITICAL AND IN THE RECENT RECESSION THE ONE LINE FUNCTION THAT HASN'T BEEN AFFECTED DOWNWARD IS THE SENIOR FUNDRAISER IT HAS BECOME THE HOTTEST TICKET SAYS ANN POWERS KERN A PARTNER IN NEW YORK SEARCH FIRM KORN/FERRY INTERNATIONAL THE MEDIAN SALARY FOR TOP DEVELOPMENT OFFICERS JUMPED 20 IN 1988 TO 60000 ACCORDING TO THE WASHINGTON CONSULTING OFFICE OF TOWERS PERRIN THE MEDIAN LEVELED OFF IN 1990 BEGAN INCHING AHEAD IN 1991 AND IN 1992 ROSE 59 TO 72000 BUT THERE'S A SHARP DIFFERENTIAL BETWEEN EARNINGS OF WOMEN AND MEN IN THE FIELD LAST YEAR WOMEN ACCOUNTED FOR A LITTLE MORE THAN HALF OF ALL FUNDRAISERS A MARKED INCREASE FROM A DECADE AGO HOWEVER THE AVERAGE WOMAN'S SALARY OF 40000 LAST YEAR WAS ABOUT 12000 BELOW HER MALE COUNTERPART'S ACCORDING TO THE SOCIETY MOST SURVEYS OF NONPROFIT ORGANIZATIONS' EXECUTIVE COMPENSATION SHOW MODERATE SALARY LEVELS FOR THE CHIEF DEVELOPMENT OFFICER WITH COMPENSATION LESS THAN THAT OF THE TOP NONPROFIT EXECUTIVE AND WELL BELOW THE CORPORATE WORLD STILL COMPETITION CONTINUES TO DRIVE UP THE HIGHEND SALARIES FOR DEVELOPMENT OFFICERS SAYS FRED J LAUERMAN PRESIDENT OF DEVELOPMENT SEARCH SPECIALISTS ST PAUL MINN IN 1988 THE STARS' WHO WERE CROSSING THE 100000 MARK WERE ONLY A HANDFUL SAYS MR LAUERMAN TODAY THERE ARE MANY HANDFULS AT 100000 AND SOME ARE NOW BREAKING 150000 SAYS MR LAUERMAN AND 200000 ISN'T UNHEARD OF IN ANOTHER POTENTIALLY SIGNIFICANT TREND THE CHIEF DEVELOPMENT OFFICER'S JOB IS INCREASINGLY VIEWED AS A STEPPINGSTONE TO THE PRESIDENCY OR CHIEF EXECUTIVE POST PARTICULARLY IN HIGHER EDUCATION AND HEALTHCARE GROUPS OTHER MAJOR FIELDS FOR FUND RAISING INCLUDE SOCIAL SERVICES THE ARTS POLITICAL GROUPS ADVOCACY ORGANIZATIONS AND ENVIRONMENTAL GROUPS JUST LAST MONTH RICK NAHM THE TOP DEVELOPMENT AND CHIEF PLANNING EXECUTIVE AT THE UNIVERSITY OF PENNSYLVANIA WAS NAMED PRESIDENT OF KNOX COLLEGE A SMALL PRIVATE LIBERALARTS SCHOOL IN GALESBURG ILL MR NAHM CONCEDES THAT THE APPOINTMENT MAY BE UNCONVENTIONAL BUT ADDS THE PRESIDENTS OF SMALL COLLEGES NO MATTER WHAT THEIR BACKGROUNDS HAPPEN TO BE HAVE A MAJOR RESPONSIBILITY IN FUND RAISING AND STUDENT RECRUITMENT DEVELOPMENT OFFICERS WHO ARE MEMBERS OF PROFESSIONAL GROUPS OF WHICH THE NATIONAL SOCIETY OF FUND RAISING EXECUTIVES IS THE LARGEST AND CONSULTANTS ACCOUNT FOR ABOUT TWOTHIRDS OF THE FUNDRAISER POPULATION THE REST ARE INDEPENDENTS OR TELEMARKETERTYPE FUNDRAISERS WHO MAY WORK FOR A PERCENTAGE OF DOLLARS RAISED OFTEN THROUGH MASS CANVASSING THE SOCIETY RECENTLY ADOPTED STIFFER STANDARDS THAT AMONG OTHER THINGS CREATE A SYSTEM TO HANDLE COMPLAINTS AND IT FORBIDS MEMBERS FROM RAISING MONEY ON COMMISSION THESE DAYS THE CHIEF DEVELOPMENT EXECUTIVE'S JOB IS GROWING MORE COMPLEX THERE ARE STILL SUNDAY AFTERNOON COFFEES AND DIALINGFORDONORS CAMPAIGNS TO BE SURE BUT DEVELOPMENT OFFICIALS MUST ALSO CULTIVATE MAJOR GIFTS FROM WEALTHY INDIVIDUALS THROUGH SUCH STRATEGIES AS TRUSTS AND ANNUITIES NEARLY 90 OF SOCALLED PLANNED GIFTS ARE IN THE FORM OF BEQUESTS AND FUNDRAISERS MUST KNOW HOW TO SELL THE CHARITY TO CORPORATIONS RECENTLY THE ASSOCIATION OF GOVERNING BOARDS OF UNIVERSITIES AND COLLEGES IN WASHINGTON UPGRADED ITS DEVELOPMENTOFFICER SALARY TWICE BEFORE FILLING THE POST IT HAD BECOME VACANT BECAUSE THE CHIEF FUNDRAISER WAS PROMOTED TO THE GROUP'S SECONDHIGHEST POSITION RICHARD T INGRAM PRESIDENT OF THE UMBRELLA GROUP THAT ADVISES TRUSTEES AND BOARD MEMBERS SAYS THE ASSOCIATION PLANNED TO RAISE THE SALARY BY 10000 TO 90000 BUT AFTER CONSULTING A SEARCH FIRM ABOUT THE JOB MARKET THE ASSOCIATION BROADENED THE POSITION TO INCLUDE PUBLIC RELATIONS AND TACKED 10000 ONTO THE SALARY THE SEARCH FIRM MR LAUERMAN'S REMINDED US OF THE COST OF LIVING IN WASHINGTON AND THE FACT THAT TOP FUNDRAISERS IN THE COUNTRY ARE COMMANDING HIGH SALARIES SAYS MR INGRAM HE ADDS THAT AMONG OTHER THINGS TODAY'S FUNDRAISERS MUST BRING A LEVEL OF SOPHISTICATION REQUIRED TO BE ACCEPTED IN THE COMMUNITIES WHERE THEY AND DONORS LIVE THE HIRE AT 100000 MADE THE NEW VICE PRESIDENT RESOURCES AND PUBLIC AFFAIRS THE SECONDHIGHEST PAID EXECUTIVE BEHIND MR INGRAM THAT MEANS THE NEW OFFICIAL EARNS MORE THAN HIS PREDECESSOR WHO IS ACTUALLY ABOVE HIM IN THE NO 2 EXECUTIVE POSITION THAT'S MY PROBLEM SAYS MR INGRAM OF THE SENSITIVE INTEROFFICE POLITICS EXECUTIVESEARCH FIRMS OF COURSE MAY ENCOURAGE SALARY INFLATION BECAUSE THEIR FEES ARE BASED ON THE COMPENSATION THE IRONY IS THAT I'M PART OF THE PROBLEM SAYS STEVEN T AST A PARTNER OF AST/BRYANT WITH OFFICES IN LOS ANGELES AND NEW CANAAN CONN MR AST WHO CHARGES ONETHIRD OF THE FIRST YEAR'S SALARY CONCEDES THAT IN THE NONPROFIT SECTOR THAT'S PRETTY RICH WHAT'S MORE HE SAYS REQUESTING A 30 SALARY INCREASE FROM THE PREVIOUS JOB ISN'T UNCOMMON WHAT'S HAPPENING IS EVERYBODY'S GOT TO HAVE A FUNDRAISER WHETHER THEY NEED ONE OR NOT AND SOMETIMES THEY PAY RIDICULOUS SALARIES FOR 'STARS' SAYS MR AST EVEN THE BIGGEST CHARITIES ARE STEPPING UP THEIR FUND RAISING THE AMERICAN RED CROSS LAST YEAR UPGRADED THE CHIEF FUNDRAISER POST MAKING IT ONE OF THE FIVE TOP SENIOR VICE PRESIDENTS WHOSE SALARIES RANGE FROM 130000 TO 180000 BUT EVEN NONSTARS COST MONEY WORRIED ABOUT A DROP IN FUNDING FROM THE LOCAL UNITED WAY ORGANIZATION NEWARK EMERGENCY SERVICES FOR FAMILIES IN NEW JERSEY LAST YEAR DECIDED TO HIRE ITS FIRST FUNDRAISER AS A PARTTIMER ARMED WITH A 25000 GRANT BONNIE PERRY EXECUTIVE DIRECTOR SOON LEARNED THAT APPLICANTS WANTED FULLTIME POSITIONS ONLY AND WERE ASKING SALARIES OF 40000 TO 60000 PEOPLE WERE DEMANDING THE SALARY I MAKE OR MORE SAYS MS PERRY SO SHE STRETCHED THE GROUP'S MODEST BUDGET AND HIRED SOMEONE WHO HAD EXPERIENCE AS A VOLUNTEER FUNDRAISER WE'VE GOT TO HOPE THAT WE RAISE MONEY WE'VE MADE A FINANCIAL COMMITMENT SAYS MS PERRY SHE ADDS I'D LIKE THIS PERSON TO BRING IN AT LEAST 100000 IN NEW FUNDS 9303020074 930302 BUSINESS BRIEF EVERGREEN INFORMATION TECHNOLOGIES CASH IS NEARLY EXHAUSTED TWO EXECUTIVES RESIGN POSTS EVERGREEN INFORMATION TECHNOLOGIES INC MCLEAN VA SAID IT HAS NEARLY EXHAUSTED ITS CASH RESERVES AND IS IN TALKS ABOUT RAISING ADDITIONAL FINANCING THE COMPANY ALSO SAID ITS PRESIDENT AND FORMER CHAIRMAN BOTH RESIGNED EVERGREEN SAID BARRY NELSEN WHO HAD A HEARTBYPASS OPERATION LAST WEEK RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE THE BOARD FORMALLY ACCEPTED THE RESIGNATION OF THOMAS CASEY ITS FORMER CHAIRMAN WHO STEPPED DOWN EFFECTIVE FEB 2 MARTIN BELL WAS NAMED PRESIDENT CEO AND CHAIRMAN MR BELL WHO HAS BEEN CHIEF FINANCIAL OFFICER SINCE THE FALL ALSO GOT VOTING CONTROL OF 970000 SHARES HELD BY THE EVERGREEN PARTNERSHIP A VEHICLE FOR THE COMPANY'S THREE COFOUNDERS INCLUDING MR NELSEN EXCLUDING THESE SHARES EVERGREEN INFORMATION HAS MORE THAN TWO MILLION SHARES OR EXERCISABLE WARRANTS OUTSTANDING ACCORDING TO A SPOKESWOMAN THE COMPUTER PRODUCTS AND SERVICES CONCERN HAS CUT ITS STAFF TO FEWER THAN 10 EMPLOYEES FROM ABOUT 35 AND HAS DEFERRED AND REDUCED MANAGERS' SALARIES IN A PRESS RELEASE IT SAID IT BELIEVES THE COMPANY IS STILL VIABLE 9303020072 930302 CREDIT MARKETS BOND RALLY ROLLS ON WITH BOOSTS FROM DATA SHOWING DROPS IN HOME SALES MANUFACTURING BY GENE COLTER AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SOME OF WALL STREET'S BOND TRADERS HAD TO COPE WITH NEW SURROUNDINGS YESTERDAY BUT ALL OF THEM INVITED THE BOND RALLY BACK INTO THEIR TRADING ROOMS AS PRICES SOARED ONCE AGAIN YESTERDAY US TRADERS BEGAN THE DAY WITH HIGHER PRICES INHERITED FROM OVERSEAS DEALERS AND THOUGH CIRCUMSTANCES RELATED TO THE WORLD TRADE CENTER BOMB BLAST AND FIRE LAST FRIDAY LEFT SOME INSTITUTIONAL INVESTORS WITHOUT A LIVE BOND PRICING SERVICE PROFESSIONAL TRADERS HAD ENOUGH BUYING CHORES TO KEEP THE RALLY GOING IN GENERAL IT'S THE CASE OF THE MARKET THAT WON'T GO DOWN SAID MATTHEW ALEXY GOVERNMENT TRADING STRATEGIST AT FIRST BOSTON CORP THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 5/8 POINT OR MORE THAN 625 FOR A BOND WITH A 1000 FACE VALUE TO 102 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 684 FROM 689 ON FRIDAY THE 10YEAR NOTE ROSE MORE THAN 3/8 POINT TO 102 5/32 TO YIELD 594 BEFORE LAST WEEK THE YIELD OF THE 10YEAR NOTE HAD NOT DROPPED BELOW 590 IN OVER TWO DECADES NEWS OF DROPS IN SINGLEFAMILY HOME SALES AND THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGERS WHICH MEASURES GROWTH IN THE MANUFACTURING SECTOR WERE AN EARLY BOOST TO THE MARKET AND MUNICIPAL DEFEASANCE PROGRAMS ADDED STRENGTH TO THE MARKET AS THE DAY PROGRESSED IN DEFEASANCE PROGRAMS A STATE OR LOCAL GOVERNMENT OFFERS NEW DEBT AND USES THE PROCEEDS TO PAY OFF OUTSTANDING BONDS BUT UNTIL THE OLD DEBT CAN BE CALLED THE GOVERNMENT USUALLY INVESTS THE PROCEEDS IN TREASURYS OFTEN IN MEDIUMTERM NOTES THE ABSENCE YESTERDAY OF CANTOR FITZGERALD SECURITIES CORP THE GIANT INTERDEALER BOND BROKER MAY HAVE MADE FUND MANAGERS LEERY OF BOND BUYING CANTOR FITZGERALD HAD TO CURTAIL OPERATIONS AFTER FRIDAY'S EXPLOSION AND FIRE THE FIRM WAS UNABLE TO GET ITS PRICE SCREENS RUNNING AGAIN YESTERDAY AND DID LITTLE IN ITS MAIN BUSINESS AS A BOND BROKER THE FIRM MOVED ITS 750 EMPLOYEES TO A NUMBER OF OTHER LOCATIONS IN NEW YORK CITY AND NEW JERSEY INCLUDING THE WORLD FINANCIAL CENTER IN DOWNTOWN MANHATTANIN SPACE PROVIDED BY DOW JONES & CO PUBLISHERS OF THE WALL STREET JOURNAL AND IN OTHER OPERATING WORLD TRADE CENTER SPACE PROVIDED BY SALOMON BROTHERS INC THE CANTOR PRICING SERVICE IS PROVIDED TO SUBSCRIBERS THROUGH THE ELECTRONIC FINANCIAL INFORMATION SERVICE RUN BY TELERATE A UNIT OF DOW JONES STREET TRADERS SAY CANTOR FITZGERALD HANDLES AS MUCH AS 70 OF THE FLOW IN 30YEAR BONDS WHILE FUND MANAGERS CAN GET BOND PRICE QUOTES ELSEWHERE MANY OF THEM ARE MOST COMFORTABLE WITH CANTOR'S PRICE SCREENS MANAGERS USING CANTOR SCREENS CAN SEE THE FLOW OF BONDS AS WELL AS THE BID AND OFFER SAID FIRST BOSTON'S MR ALEXY WHETHER OR NOT CANTOR SCREENS ARE BLINKING PRICES TODAY BOND MARKET FUNDAMENTALS SHOULD ALLOW INVESTORS TO RETURN TO THE MARKET ACCORDING TO LAWRENCE LEUZZI MANAGING DIRECTOR AND HEAD OF FIXEDINCOME OPERATIONS AT SG WARBURG & CO WE DON'T HAVE VERY MUCH NEW SUPPLY COMING POINTED OUT MR LEUZZI THE NEXT TREASURY NOTE AUCTION DOESN'T TAKE PLACE UNTIL THE END OF MARCH REGIONAL MONEY MANAGERS RELYING EXCLUSIVELY ON CANTOR'S TREASURY PRICING SERVICE ARE LIKELY TO BE THE MOST AFFECTED BY THE COMPANY'S ABSENCE FROM THE MARKET ROBERTA OLSON SENIOR PORTFOLIO MANAGER AT BANC ONE INVESTMENT ADVISORS OF COLUMBUS OHIO SAID THAT SHE IS LIKELY TO SUBSCRIBE TO ANOTHER PRICING SERVICE BY WEEK'S END IF CANTOR ISN'T BACK ON LINE ROBERT MERCORELLA A MANAGING DIRECTOR AT CANTOR SAID YESTERDAY THAT WITHIN 48 HOURS WE WILL HAVE DIRECT LINES TO ALL OF OUR CUSTOMERS AND MAY BE ABLE TO OFFER SOME TREASURY PRICING SERVICES AS SOON AS TODAY IRONICALLY BEFORE THE BLAST CANTOR HAD BEEN WORKING TO PREPARE A FACILITY IN THE BOROUGH OF BROOKLYN TO HOUSE ALL OF ITS OPERATIONS IN CASE OF AN EMERGENCY SAID MR MERCORELLA BUT IT WAS NOT READY IN TIME TO BE USED THIS WEEK THE EXPLOSION AND FIRE THAT SHUT DOWN THE WORLD TRADE CENTER ALSO UPROOTED TWO PRIMARY DEALERS OF GOVERNMENT SECURITIES DEAN WITTER REYNOLDS INC AND YAMAICHI INTERNATIONAL OF AMERICA INC BOTH FIRMS SET UP TRADING OPERATIONS IN OTHER LOCATIONS YESTERDAY WE'RE UP AND RUNNING HERE SAID WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC WE HAD A CONTINGENCY PLAN DURING THE GULF WAR AND WE'RE PUTTING THAT PLAN INTO EFFECT DEAN WITTER HAS OFFICES IN MIDTOWN MANHATTAN AND ALL TREASURY TRADERS AND MANAGERS REPORTED FOR WORK THERE YESTERDAY MORNING THEY DIDN'T HAVE ENOUGH COMPUTER TERMINALS HERE SAID IAN BERNSTEIN A GOVERNMENT SECURITIES TRADING MANAGER BUT THEY HAD IBM TERMINALS UP HERE AT 830 THIS MORNING AND THEY WERE PLUGGED IN AT PEOPLE'S DESKS BY 915 IT WAS AMAZING IT'S ACTUALLY A LOT LESS HARRIED THAN WE EXPECTED YESTERDAY THE TREASURY SOLD 2339 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION UP SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 297 FOR A COUPONEQUIVALENT YIELD OF 304 COMPARED WITH 296 AND 302 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 305 FOR A COUPONEQUIVALENT YIELD OF 314 COMPARED WITH 306 AND 315 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 4 THE 13WEEK BILLS MATURE JUNE 3 1993 AND THE 26WEEK BILLS MATURE SEPT2 1993 THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S BONDS WERE LEFT OUT OF THE BUYING SPURT THAT BOOSTED THE PRICES OF SOME OTHER TAXEXEMPT SECURITIES BY 1/4 POINT OR MORE YESTERDAY THE PORT AUTHORITY OWNS THE WORLD TRADE CENTER WHICH SUFFERED SUBSTANTIAL DAMAGE IN FRIDAY'S BOMB BLAST THERE WAS SELLING OF SOME LONGERTERM PORT AUTHORITY BONDS THAT BOOSTED YIELDS 005 PERCENTAGE POINT FROM FRIDAY'S LEVELS BUT THE SALES WEREN'T MASSIVE TRADERS SAID SOME MARKET PARTICIPANTS WERE APPARENTLY JUST TESTING THE WATERS BY SELLING A FEW PORT AUTHORITY ISSUES AFTER THE EXPLOSION A NEW YORK TRADER SAID DESPITE THE BOMBING AND YESTERDAY'S SALES THE PORT AUTHORITY PROBABLY WON'T HAVE MUCH TROUBLE SELLING SOME SECURITIES TOMORROW HE SAID THE AUTHORITY PLANS TO SELL ABOUT 100 MILLION OF NOTES TOMORROW TO RETIRE SHORTTERM NOTES THAT ARE DUE ON MARCH 15 MOODY'S INVESTORS SERVICE INC SAID FRIDAY'S BOMBING IS NOT EXPECTED TO HAVE A NEGATIVE IMPACT ON THE AUTHORITY'S SINGLEA1 RATING FOR ITS CONSOLIDATED BONDS THE AUTHORITY HAS 404 BILLION OF CONSOLIDATED BONDS OUTSTANDING EXCLUDING 404 MILLION OF INSURED ISSUES BECAUSE OF PRESIDENT CLINTON'S PROPOSAL TO RAISE FEDERAL PERSONAL INCOME TAX RATES DEMAND IS RUNNING VERY HIGH IN THE MUNI MARKET INVESTORS HAVE BEEN SNAPPING UP NEW SUPPLY INCLUDING SECURITIES SOLD BY SOME OF THE MORE TROUBLED ISSUERS IN THE MARKET ALSO PRICES OF MOST SECONDARY ISSUES CONTINUE TO RISE ON STEADY BUYING IN SECONDARY TRADING THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 550 SERIES B POWER SYSTEM REVENUE REFUNDING BONDS OF 2017 CLOSED 1/2 POINT HIGHER AT 98 1/2 TO YIELD 561 TODAY'S ANTICIPATED HIGHLIGHT IS THE PRICING OF THE SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY OF CALIFORNIA'S 1 BILLION OF SENIORLIEN TOLL ROAD REVENUE BONDS AND 100 MILLION OF JUNIORLIEN BONDS FIRST BOSTON IS THE MANAGING UNDERWRITER FOR THIS ISSUE THE 11 BILLION OFFERING WILL BE THE SECONDLARGEST ONE PRICED THIS YEAR FOLLOWING THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S SALE OF 16 BILLION POWER SYSTEM REVENUE AND REFUNDING BONDS IN JANUARY PROCEEDS FROM THE SAN JOAQUIN HILLS BOND SALE WILL BE USED TO PURCHASE PROPERTY AND FOR DESIGN AND CONSTRUCTION OF 145 MILES OF LIMITEDACCESS TOLL ROAD CONSTRUCTION IS SCHEDULED TO BE COMPLETED BY MARCH 1997 CORPORATE BOND SALES TOTALED LESS THAN 900 MILLION YESTERDAY AS UNDERWRITERS SPENT THE SESSION PLACING UNSOLD BONDS LEFT FROM LAST WEEK'S BORROWING SPREE PRICES OF CORPORATE BONDS ROSE 1/8 TO AS MUCH AS 1/2 POINT WITH TREASURYS HOWEVER TRADING WAS CHOPPY WITH THE MANY INVESTORS ON THE SIDELINES IN THE WAKE OF THE WORLD TRADE CENTER BLAST MCI COMMUNICATIONS CORP MOTOROLA INC AND INTERNATIONAL PAPER CO WERE AMONG THE HANDFUL OF ISSUERS FLOATING DEBT YESTERDAY SYNDICATE OFFICIALS SAY THEY EXPECT INTEREST RATES TO CONTINUE TO DECLINE THIS WEEK WHICH SHOULD SPUR MORE COMPANIES TO REFINANCE THEIR OUTSTANDING DEBT MEANWHILE JUNK BONDS CLOSED LITTLE CHANGED AS INVESTORS CONTINUED TO PORE OVER NEW ISSUE PROSPECTUSES THIS WEEK METALCOMPONENTS COMPANY WYMANGORDON CO AND FASTFOOD RESTAURANT CONCERN RALLY'S INC ARE AMONG THE ISSUERS EXPECTED TO SELL NEW HIGHYIELD DEBT THE EXPECTED ISSUANCE IS GOOD NEWS FOR SECONDARY TRADERS WHO HAVE SEEN TRADING VOLUME DRY UP IN RECENT WEEKS AS SEASONED ISSUES BECAME TOO EXPENSIVE MORTGAGEBACKED SECURITIES WEATHERED ANOTHER DAY OF A RALLYING TREASURY MARKET WITH LITTLE TRADING AND NO SIGN THAT MORTGAGE BANKERS HAVE LOANS TO SELL AFTER LAST WEEK'S HECTIC SELLING IN THE WAKE OF FALLING RATES TRADING FLOORS WERE RELATIVELY QUIET ALL DAY PRICES OF CURRENTCOUPON MORTGAGE SECURITIES FAILED TO KEEP UP WITH GAINS IN THE TREASURY MARKET SO YIELD SPREADS OF MORTGAGES TO TREASURIES WIDENED SLIGHTLY IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 SECURITIES FOR MARCH DELIVERY FINISHED 13/32 HIGHER AT 103 15/32 FEDERAL HOME LOAN MORTGAGE CORP 75 SECURITIES FINISHED 11/32 HIGHER AT 103 5/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FINISHED 11/32 HIGHER AT 102 31/32 THE 10YEAR TREASURY NOTE USED AS A BENCHMARK FOR MOST 30YEAR MORTGAGE SECURITIES ENDED AT 102 5/32 FOR A YIELD OF 594 MORTGAGE ANALYSTS EXPECT THE YIELD SPREAD OF MORTGAGE SECURITIES TO TREASURYS WILL CONTINUE TO WIDEN AS MORE SECURITIES FLOOD INTO THE MARKET FROM REFINANCED AND NEW MORTGAGE LOANS THESE PRESSURES ALTHOUGH LARGELY PRICED INTO THE MARKET ARE NOT EXPECTED TO HIT SOON FREDDIE MAC REPORTED YESTERDAY THAT MOST MORTGAGE LOANS PREPAID 30 TO 40 SLOWER FROM MIDJANUARY TO MIDFEBRUARY THAN DURING THE PREVIOUS FOUR WEEKS THE NUMBERS REFLECT REFINANCING AND NEW HOME BUYING FROM THE END OF LAST YEAR WHEN MORTGAGE RATES WERE MORE THAN 065 PERCENTAGE POINT HIGHER THAN THEY ARE RIGHT NOW CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9303020071 930302 INTERNATIONAL NEC SAYS LOSS TO BE WIDER THAN EXPECTED FIGURE SURPRISES ANALYSTS REFLECTS ILLS OF JAPAN'S ELECTRONICS COMPANIES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEC CORP SAID IT WILL POST A MUCH LARGER LOSS FOR THE CURRENT FISCAL YEAR THAN WHAT IT PREDICTED IN NOVEMBER THE SIZE OF THE REVISION SURPRISED ANALYSTS AND UNDERSCORED THE PLIGHT OF JAPAN'S ELECTRONICS SECTOR NEC'S ANNOUNCEMENT ALSO SETS THE STAGE FOR A WAVE OF DOWNWARD REVISIONS ANALYSTS EXPECT FROM JAPAN'S OTHER BATTERED ELECTRONICS CONCERNS NEC SAID THAT FOR THE YEAR ENDING MARCH 31 IT NOW EXPECTS A LOSS OF 43 BILLION YEN 3645 MILLION ALMOST FIVE TIMES BIGGER THAN THE LOSS OF NINE BILLION YEN IT PREDICTED A FEW MONTHS AGO THE REVISION REFLECTS POOR SALES AND THE SLUGGISH STATE OF THE JAPANESE ECONOMY ACCORDING TO A SPOKESMAN FOR NEC JAPAN'S LARGEST MAKER OF SEMICONDUCTORS AND PERSONAL COMPUTERS THE COMPANY REPORTED GROUP NET INCOME OF 1528 BILLION YEN FOR ITS PREVIOUS FISCAL YEAR NEC ALSO LOWERED ITS GROUP SALES FORECAST TO 362 TRILLION YEN FROM 378 TRILLION DOWN 4 FROM THE PREVIOUS YEAR'S SALES OF 377 TRILLION THE COMPANY SIMILARLY LOWERED ITS PROJECTED PRETAX RESULTS TO A 40 BILLIONYEN GROUP LOSS IT HAD FORECAST A 10 BILLIONYEN GROUP PRETAX PROFIT NEC REPORTED A 5145 BILLIONYEN GROUP PRETAX PROFIT FOR THE PRIOR YEAR ANALYSTS WERE SURPRISED BY THE MAGNITUDE OF NEC'S REVISION I THOUGHT THEY'D LOSE 25 BILLION YEN PRETAX SO THEIR FORECAST PRETAX AND NET IS QUITE EXTRAORDINARY SAID MICHAEL JEREMY AN ANALYST FOR BARING SECURITIES JAPAN LTD HE ADDED THAT NEC'S POOR RETURNS STEM MOSTLY FROM ITS INABILITY TO CUT HIGH FIXED COSTS ESPECIALLY IN PERSONNEL DESPITE SLUMPING SALES A SPOKESMAN FOR FUJITSU LTD MEANWHILE SAID THE COMPANY WILL PROBABLY LOWER ITS EARLIER FISCAL YEAR FORECAST OF 36 TRILLION YEN IN GROUP SALES AND NET PROFIT OF FIVE BILLION YEN THE COMPANY REPORTED A 192 BILLIONYEN LOSS FOR THE FIRST HALF TOSHIBA CORP ALSO IS FINDING ITS CURRENT FISCAL YEAR FORECAST OF A 60 BILLIONYEN PARENT PRETAX PROFIT DIFFICULT TO ACHIEVE A SPOKESMAN SAID ANALYSTS WERE DIVIDED AS TO WHETHER THE ELECTRONICS COMPANIES CAN EXPECT A RECOVERY SOON THINGS SEEM TO KEEP GETTING WORSE SAID MR JEREMY WHO ADDED THAT EVEN A MAJOR RESTRUCTURING MIGHT NOT BRING NEC BACK TO PROFITABILITY WITHOUT AN OVERALL RECOVERY OF THE ECONOMY CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC SAID THE INDUSTRY HAD PROBABLY HIT BOTTOM AND PREDICTED A GRADUAL WOKBOTTOM RECOVERY ONE WITHOUT A SHARP VSHAPED TURNAROUND STARTING SOMETIME IN THE FOURTH QUARTER OF CALENDAR 1993 BEFORE THAT HAPPENS HE BELIEVES THE ELECTRONICS COMPANIES MAY HAVE TO TAKE MORE DRASTIC RESTRUCTURING MEASURES INCLUDING SHARP PERSONNEL CUTS WHEN THEY EMERGE FROM THE DOWNTURN HE ADDED JAPANESE COMPANIES ARE GOING TO BE A LOT STRONGER THAN THEY USED TO BE 9303020070 930302 JAPAN AT WORK LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY MASAYOSHI KANABAYASHI OVERTIME REDUCTION WOE TO THOSE WHO GET WHAT THEY ASK FOR FOR YEARS JAPAN'S LABOR UNIONS HAVE FOUGHT FOR FEWER REQUIRED OVERTIME HOURS NOW THANKS TO THE COUNTRY'S ECONOMIC TROUBLES EMPLOYERS ARE OBLIGING MUCH TO THE CHAGRIN OF CASHSTARVED WORKERS I DIDN'T EXPECT THINGS WOULD DEVELOP SO RAPIDLY COMPLAINS FUJIO ONOZUKA A WORKER AT A COMPUTERPARTS MAKER MR ONOZUKA USED TO GET ABOUT 70000 YEN A MONTH IN OVERTIME AND THAT HAS BEEN SLASHED TO A THIRD HE GOES OUT LESS OFTEN WITH HIS BUDDIES FOR BEER IT'S IMPOSSIBLE TO OFFSET THE LOST INCOME SO WE MUST CUT OUR FAMILY BUDGET SAYS SHINICHI IMAEDA AN AUTO WORKER IN JAPAN 30 HOURS OF OVERTIME A MONTH ISN'T UNUSUAL ONE LABOR GROUP SAYS THE DROP IN OVERTIME TRANSLATES TO MORE THAN THREE TRILLION YEN A YEAR IN LOST INCOME AND COULD PINCH CONSUMER SPENDING TOYOTA MOTOR CO IN NOVEMBER CANCELED ALL OVERTIME FOR ADMINISTRATIVE STAFF FOR TWO MONTHS JAPAN'S AGING WORK FORCE IS THREATENING SENIORITYBASED WAGES SENIORITY HAS LONG DICTATED WAGE RATES IN JAPAN YOU MARCHED UP THE PAY SCALE ALMOST REGARDLESS OF PERSONAL ACHIEVEMENT ON THE JOB IN 1970 THOSE WITH SENIORITY OF 15 YEARS OR MORE ACCOUNTED FOR ONLY 18 OF THE WORK FORCE BY 1991 THAT SHARE HAD JUMPED TO 38 SAYS NOMURA RESEARCH INSTITUTE EMPLOYERS HAVE BEEN TRYING TO HOLD DOWN WAGE DIFFERENCES IN 1970 WORKERS WITH SENIORITY OF MORE THAN 30 YEARS MADE 37 TIMES THE PAY OF THOSE WITH SENIORITY OF ONE TO TWO YEARS BY 1991 THAT HAD SHRUNK TO 29 TIMES BUT IF THE MAKEUP OF EMPLOYEES KEEPS CHANGING AT THE CURRENT PACE JAPAN'S PAY SYSTEM WILL HAVE TO BE REVIEWED MORE BROADLY THE NOMURA REPORT SAYS MORE THAN THEY BARGAINED FOR UNIONS ARE FORCING OUT CORPORATE CHIEFS ONE OF THE LATEST TO GO IS MOTOHIRO NAKAJIMA PRESIDENT OF TOYO KEIZAI INC A MAJOR PUBLISHER WHO RESIGNED UNDER PRESSURE FROM THE RANK AND FILE IN DECEMBER MR NAKAJIMA WAS ACCUSED OF BEING TOO AUTOCRATIC HIS DEPARTURE FOLLOWS OTHER LABORLED REVOLTS AT COMPANIES SUCH AS TOKYO SHOKO RESEARCH LTD YAMAHA CORP AND TOKYO BROADCASTING SYSTEM INC JAPAN'S CORPORATEBASED UNIONS OFTEN WIELD MUCH STRONGER INFLUENCE OVER MANAGEMENT THAN DO SHAREHOLDERS UNDER THE NATION'S SOCALLED LIFETIME EMPLOYMENT SYSTEM EMPLOYEES STRONGLY IDENTIFY THEIR INTERESTS WITH THE COMPANY'S TOYO KEIZAI'S LABOR LEADER SAYS MR NAKAJIMA WASN'T THE RIGHT PERSON TO HEAD THE ORGANIZATION IN WHICH WE ENTRUST OUR FATE UNEMPLOYMENT IN JAPAN IS EXPECTED TO WORSEN THE JOBLESS RATE SLIPPED TO 15 MILLION IN JANUARY OR 23 OF THE WORK FORCE DOWN FROM 24 IN DECEMBER STILL THE GOVERNMENT SAYS THE DROP DOESN'T REFLECT AN IMPROVING LABOR MARKET THE FIGURES ARE WIDELY SEEN AS UNDERCOUNTING THE SITUATION MANY PEOPLE DON'T REPORT TO GOVERNMENT OFFICES AFTER LOSING A JOB AND THE FIGURES DON'T REFLECT WIDE UNDEREMPLOYMENT SO MUCH FOR LABORSAVING INVESTMENTS JAPAN'S ROBOT MAKERS FEEL THE PINCH OF THE RECESSION ACCORDING TO THE JAPAN INDUSTRIAL ROBOT ASSOCIATION THE YENVALUE OF PRODUCTION OF ROBOTS IS ESTIMATED TO HAVE DECLINED TO 480 BILLION YEN IN 1992 DOWN 20 FROM 1991'S RECORD 600 BILLION YEN THE NEW JAPANESE A STUDY SHOWS THAT JAPANESE COLLEGE STUDENTS ABOUT TO CHOOSE AN EMPLOYER GIVE HIGHEST PRIORITY TO VACATION BENEFITS STUDENTS' VALUES HAVE CHANGED AS THE SOCIETY HAS BECOME RICH SAYS AN OFFICIAL AT THE GOVERNMENTAFFILIATED LEISURE DEVELOPMENT CENTER IN OUR FATHERS' ERA MONEY WAS EVERYTHING MORE COMPANIES EMPLOY THE HANDICAPPED THANKS TO A GOVERNMENT THREAT TO DISCLOSE THE NAMES OF INTRANSIGENT FIRMS BUT ABOUT 80 OF MAJOR COMPANIES STILL HAVEN'T MET THE GOVERNMENT'S CALL TO INCREASE THE NUMBER OF HANDICAPPED WORKERS THEY EMPLOY TO 16 OF THEIR WORK FORCES PREPARE EARLY JAPAN TELLS WORKERS RETIRING OVER THE NEXT FEW YEARS COMPANY PROGRAMS ARE BLOSSOMING FOR THOSE NEARING RETIREMENT AGE ASAHI BREWERIES LTD HAS A SEMINAR CALLED NICE LIFE PLAN TO HELP PROSPECTIVE RETIREES LEAD A LIFE WORTH LIVING TOKYO GAS CO ENCOURAGES SPOUSES TO TAKE PART IN THEIR PROGRAMS WHICH HELP WORKERS REFOCUS THEIR LIVES FROM WORK TO FAMILY COMMUNITY AND LEISURE THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HAS UNVEILED THE MELLOW COMPANY AWARD FOR FIRMS HELPING WORKERS THROUGH THE TRANSITION IBM JAPAN LTD THE WINNER HOLDS SEMINARS AND GIVES EACH EMPLOYEE AND SPOUSE 600000 YEN FOR CLASSES TO BROADEN THEMSELVES IN RETIREMENT BUT IT WAS IBM JAPAN THAT RECENTLY ANNOUNCED A TOUGH COSTCUTTING MOVE IT IS SEEKING VOLUNTARY RETIREMENT BY WORKERS AGE 50 AND OLDER AND INDICATES IT HOPES TO TRIM 1200 EMPLOYEES FROM THAT AGE GROUP THE CHECKOFF SOME OF JAPAN'S BIG SHIPPING FIRMS ARE TRYING TO IMPROVE THE QUALITY OF LIFE FOR CREWS BY ALLOWING FAMILY MEMBERS TO SAIL ALONG TEMPORARY WORK IS SOARING IN JAPAN REVENUES FOR TEMP AGENCIES HAVE JUMPED TO FIVE TIMES THE LEVEL OF FIVE YEARS AGO 9303020069 930302 DIVIDEND NEWS ANGELES PARTICIPATING MORTGAGE TRUST ANGELES PARTICIPATING MORTGAGE TRUST LOS ANGELES SAID THE AMOUNT OF DIVIDENDS FOLLOWING ITS FEBRUARY PAYMENT IS UNCERTAIN AND EXPECTED TO BE REDUCED AS A RESULT OF ANGELES CORP'S LIQUIDITY PROBLEMS ANGELES PARTICIPATING MORTGAGE SAID A PORTION OF ITS 167 CENT DIVIDEND PAYABLE MARCH 12 WILL BE PAID OUT OF EARNED INCOME AND A PORTION OUT OF CAPITAL ANGELES CORP THE PARENT COMPANY OF ANGELES PARTICIPATING MORTGAGE'S ADVISER LAST MONTH SUSPENDED THE MONTHLY DIVIDEND OF ANOTHER TRUST ANGELES MORTGAGE INVESTMENT TRUST ANGELES HAD GUARANTEED ANGELES PARTICIPATING MORTGAGE'S DIVIDEND PAYMENTS UNTIL OCTOBER ANGELES HOWEVER SAID YESTERDAY IT NOTIFIED THE TRUST THAT IT IS NOT PRESENTLY ABLE TO FULFILL ITS GUARANTEE OBLIGATIONS IN PART BECAUSE OF DECLINING OPERATING INCOME 9303020068 930302 CREDIT RATINGS DSC COMMUNICATIONS CORP PLANO TEXAS STANDARD & POOR'S CORP RAISED ITS RATINGS OUTLOOK TO POSITIVE FROM STABLE BECAUSE OF REDUCED LEVERAGE AND AFFIRMED ITS SINGLEBMINUS RATING ON THE COMPANY'S 110 MILLION CONVERTIBLE SUBORDINATED DEBENTURES FIRST COMMERCE CORP NEW ORLEANS MOODY'S INVESTORS SERVICE INC RAISED THE RATING ON THE COMPANY'S PREFERRED STOCK TO BAA3 FROM BA2 AND ASSIGNED LONGTERM AND SHORTTERM RATINGS OF SINGLEA3 AND PRIME2 RESPECTIVELY FOR DEPOSITS AT ITS LEAD BANK MOODY'S SAID THE UPGRADE WAS THE RESULT OF IMPROVED CAPITALIZATION AND CORE PROFITABILITY AS WELL AS DECLINES IN NONPERFORMING LOANS HIBERNIA CORP NEW ORLEANS MOODY'S INVESTORS SERVICE INC RAISED RATINGS ON THE BANK'S LONG AND SHORTTERM DEPOSITS TO BAA3 FROM BA3 AND PRIME3 FROM NOT PRIME RESPECTIVELY THE RATING ON LONGTERM DEBT BACKED BY HIBERNIA'S LETTER OF CREDIT WAS RAISED TO BA2 FROM B2 MOODY'S SAID HIBERNIA'S RATING FOR SHORTTERM DEBT BACKED BY ITS LETTEROFCREDIT WAS CONFIRMED AT NOT PRIME THE RATING AGENCY SAID MOODY'S SAID THE UPGRADES REFLECT STRONG IMPROVEMENT IN THE BANK'S CONDITION AND OUTLOOK 9303020067 930302 BUSINESS BRIEF CANADIAN IMPERIAL BANK COMPANY WILL CONSOLIDATE CARIBBEAN UNITS SELL STAKE CANADIAN IMPERIAL BANK OF COMMERCE SAID IT PLANS TO REORGANIZE ITS OPERATIONS IN THE CARIBBEAN UNDER ONE CORPORATE UMBRELLA AND THEN SELL A 49 INTEREST IN THE NEW SUBSIDIARY TO INVESTORS IN THE REGION THE NEW SUBSIDIARY CIBC WEST INDIES HOLDINGS LTD WILL HOLD CANADIAN IMPERIAL'S EXISTING BRANCHES AND SUBSIDIARIES IN BARBADOS ANTIGUA ST LUCIA ST VINCENT AND TRINIDAD AND TOBAGO THE GROUP WITH ABOUT 2000 EMPLOYEES HAS COMBINED ASSETS OF 955 MILLION CANADIAN DOLLARS US7634 MILLION THE BANK SAID CANADIAN IMPERIAL TORONTO IS CANADA'S SECONDLARGEST BANK IN TERMS OF ASSETS BY REORGANIZING ITS CARIBBEAN OPERATIONS CANADIAN IMPERIAL SAID IT CAN TAKE BETTER ADVANTAGE OF A CONTINUING RELAXATION OF TRADE BARRIERS AND EXCHANGE CONTROLS AMONG THE COUNTRIES OF THE REGION 9303020065 930302 TEXAS UTILITIES CO UNITS BONDS DALLAS TEXAS UTILITIES CO AN ELECTRIC UTILITY HOLDING COMPANY SAID ITS UNITS WILL REDEEM 333 MILLION FACE AMOUNT OF CERTAIN FIRST MORTGAGE BONDS APRIL 1 DALLAS POWER & LIGHT CO WILL REDEEM ALL 50 MILLION FACE AMOUNT OUTSTANDING OF ITS 8 7/8 BONDS DUE MARCH 1 2005 AT 1007 OF FACE AMOUNT PLUS INTEREST TEXAS ELECTRIC SERVICE CO WILL REDEEM ALL OF ITS 59 MILLION FACE AMOUNT OF ITS 9 1/2 BONDS DUE DEC 1 2005 AT 100 PLUS INTEREST TEXAS ELECTRIC ALSO WILL REDEEM ALL OF ITS 74 MILLION FACE AMOUNT OF ITS 9 1/2 BONDS DUE FEB 1 2009 AT 100 FACE AMOUNT PLUS INTEREST TEXAS POWER & LIGHT CO WILL REDEEM 50 MILLION OF ITS 9 1/2 SERIES DUE APRIL 1 2005 AT 100 FACE AMOUNT PLUS INTEREST LEAVING 50 MILLION FACE AMOUNT OUTSTANDING AFTER THE REDEMPTION TEXAS POWER ALSO WILL REDEEM ALL OF ITS 100 MILLION 9 3/8 BONDS DUE FEB 1 2009 AT 100 OF FACE AMOUNT PLUS ACCRUED INTEREST 9303020064 930302 BUSINESS BRIEF GIANT GROUP LTD FOURTHPERIOD LOSS WIDENED TO 31 MILLION ON CHARGES GIANT GROUP LTD BEVERLY HILLS CALIF REPORTED FOURTHQUARTER LOSSES WIDENED TO 31 MILLION FROM 974000 A YEAR EARLIER AS THE COMPANY TOOK CHARGES FOR EMPLOYEE REDUCTIONS GIANT GROUP SAID THE LATEST QUARTER INCLUDED 25 MILLION IN ONETIME PRETAX CHARGES LOSSES INCLUDING THE CHARGES TOTALED 61 CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH 18 CENTS EMPLOYEE REDUCTIONS WILL REDUCE GIANT'S WORK FORCE TO ABOUT 255 PEOPLE AT THE END OF THE MONTH FROM 325 LATE LAST YEAR THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE BURT SUGARMAN SAID MR SUGARMAN SAID THE TERMINATIONS IN THE COMPANY'S GIANT CEMENT CO AND KEYSTONE CEMENT CO UNITS ARE EXPECTED TO CUT LABOR COSTS BY 2 MILLION ANNUALLY GIANT'S QUARTERLY REVENUE ROSE 17 TO 177 MILLION FROM 174 MILLION THE COMPANY'S YEAR LOSS NARROWED TO 61 MILLION OR 118 A SHARE FROM 69 MILLION OR 131 THE LATEST YEAR INCLUDES 3 MILLION IN ONETIME PRETAX CHARGES FOR EMPLOYEE TERMINATIONS REVENUE ROSE 96 TO 719 MILLION FROM 656 MILLION 9303020063 930302 MARKETING & MEDIA DEBTS AND ASSETS ARE ESTIMATED FOR MAXWELL FIRM BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A NEW FILING IN THE BANKRUPTCYLAW PROCEEDINGS FOR MAXWELL COMMUNICATION CORP PAINTS THE CLEAREST PICTURE YET OF HOW MUCH CREDITORS ARE OWED AND HOW BIG THE DEFICIT IS BETWEEN DEBTS AND ASSETS AMONG OTHER THINGS THE NEW DOCUMENT FILED IN US BANKRUPTCY COURT IN THE SOUTHERN DISTRICT OF NEW YORK SAYS THAT MAXWELL COMMUNICATION'S UNSECURED DEBT IS ESTIMATED AT BETWEEN 31 BILLION AND 36 BILLION EARLIER ESTIMATES HAD BEEN CLOSER TO THE LOWER FIGURE THE LATEST ESTIMATE INCLUDES MORE THAN 2 BILLION OF BANK DEBT AND NEARLY 500 MILLION OF INTRACOMPANY LOANS BETWEEN MAXWELL SUBSIDIARIES AS FOR SELLING ASSETS THE DOCUMENT SAYS THE UNITS SOLD SO FAR MOSTLY NONUS PROPERTIES FETCHED ONLY ABOUT 150 MILLION ABOUT 85 OF MAXWELL COMMUNICATION'S ASSETS ARE USBASED AND THE TRUSTEES HAVE SAID THEY EXPECT TO GET 1 BILLION AT MOST FOR THE MAJOR US ASSETS ALTHOUGH THE DOCUMENT DETAILS MANY INVESTIGATIONS INTO QUESTIONABLE DEALS BY THE LATE ROBERT MAXWELL AND HIS COMPANY IT MAKES CLEAR THAT UNTANGLING THEM AND RECOVERING ANY MONEY OWED WILL BE DIFFICULT AS PART OF CONTINUING INVESTIGATIONS INTO POSSIBLE WRONGDOING AT THE COMPANY THE BANKRUPTCY ADMINISTRATORS SAY THEY ARE REVIEWING THE ROLE OF MAXWELL COMMUNICATION'S AUDITOR COOPERS & LYBRAND AND HAVE REQUESTED DOCUMENTS PERTAINING TO MAXWELL COMMUNICATION THESE DOCUMENTS WILL THEN BE REVIEWED AND ACTION AGAINST THE AUDITORS WILL BE CONSIDERED IF APPROPRIATE THE FILING STATES THE LONDON OFFICE OF COOPERS & LYBRAND SAID IN A STATEMENT WE KNOW OF NO REASON FROM THE INFORMATION AVAILABLE TO US TO SUPPOSE THAT THE ACCOUNTS UPON WHICH WE REPORTED DIDN'T GIVE A TRUE AND FAIR VIEW THE BANKRUPTCY ADMINISTRATORS AT PRICE WATERHOUSE ALSO ESTIMATE IN THE FILING THAT THE BULK OF MAXWELL'S US ASSETS WILL BE SOLD BY THE END OF THIS YEAR THESE INCLUDE PUBLISHER MACMILLAN INC AND OFFICIAL AIRLINE GUIDES ORIGINALLY THE TRUSTEES HAD PLANNED TO SELL OAG AND DIVEST MACMILLAN IN A PUBLIC OFFERING BUT IN NOVEMBER A GROUP OF BIDDERS LED BY TEXAS BILLIONAIRE ROBERT M BASS OFFERED TO BUY BOTH COMPANIES THE BID CONSISTED OF 725 MILLION IN CASH PLUS THE ASSUMPTION OF LIABILITIES IT WAS REJECTED BUT SINCE THEN THE TRUSTEES HAVE DECIDED TO ENTERTAIN BIDS FOR ALL THE ASSETS A BIDDING WAR IS NOW WIDELY EXPECTED DURING THE NEXT MONTH OR SO BETWEEN THE BASS GROUP AND A NUMBER OF OTHER POSSIBLE SUITORS INCLUDING PARAMOUNT COMMUNICATIONS INC ONE PIECE OF MACMILLAN PROBABLY WON'T BE SOLD AT THE MOMENT THE FILING STATES THAT THE JOINT TEXTBOOKPUBLISHING VENTURE BETWEEN MACMILLAN AND MCGRAWHILL INC MIGHT NOT SELL UNTIL THE SECOND HALF OF 1995 MCGRAWHILL HAS THE RIGHT OF FIRST REFUSAL TO BUY THE OTHER HALF OF THE VENTURE WHICH IS EXPECTED TO PERFORM BETTER IN COMING YEARS DUE TO SCHOOL TEXTBOOKADOPTION SCHEDULES THE DOCUMENT IS A DISCLOSURE STATEMENT TO CREDITORS OF THE LONDONBASED COMPANY QUALIFIED TO VOTE ON ITS REORGANIZATION PLAN THE PLAN ITSELF WAS FILED ABOUT TWO WEEKS AGO IN NEW YORK AND LONDON AND WAS A MORE GENERAL STATEMENT OF THE SITUATION THE DISCLOSURE STATEMENT MUST BE APPROVED BY A BANKRUPTCY COURT JUDGE BEFORE CREDITORS CAN VOTE 9303020062 930302 SANDOR LEAVES KIDDER PEABODY DERIVATIVES JOB BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RICHARD L SANDOR A FOUNDING FATHER OF FINANCIAL FUTURES AND A LEADING WALL STREET EXPERT ON MANAGING RISK QUIT HIS SENIOR POST AT KIDDER PEABODY GROUP INC KIDDER HIRED MR SANDOR WITH MUCH FANFARE TWO YEARS AGO TO HEAD A NEW GROUP DEVOTED TO FUTURES AND OTHER DERIVATIVES PRODUCTS THE 51YEAROLD MR SANDOR HAS LED KIDDER'S PENDING EFFORT TO LAUNCH A SEPARATE DERIVATIVES UNIT TO TRADE SWAPS OPTIONS AND OTHER DERIVATIVES AS A KIDDER EXECUTIVE MANAGING DIRECTOR HE RECEIVED AN ANNUAL PAY PACKAGE OF ABOUT 2 MILLION PEOPLE FAMILIAR WITH THE COMPANY SAY THE ABRUPT RESIGNATION OF MR SANDOR WHO PLANS TO SET UP HIS OWN TRADING FIRM COMES AMID POOR RESULTS AT HIS 60MEMBER DERIVATIVES GROUP KIDDER OFFICIALS SAID THE DERIVATIVES DIVISION MANAGED BY MR SANDOR GENERATED LITTLE BUSINESS AND DIDN'T MAKE MONEY LAST YEAR THESE OFFICIALS SAID THIS YEAR KIDDER'S STOCK GROUP COMPLETED MORE THAN 100 DERIVATIVE TRANSACTIONS COMPARED WITH A HANDFUL FOR THE DERIVATIVES GROUP ACCORDING TO THE OFFICIALS MR SANDOR'S GROUP WILL BE BROKEN UP AND THE 60 EMPLOYEES WILL BE REASSIGNED TO EITHER KIDDER'S STOCK OR BOND DIVISIONS THE ONLY THING I CAN SAY IS THAT THE PARTING WAS AMICABLE MR SANDOR SAID IN AN INTERVIEW KIDDER OFFICIALS DENIED MR SANDOR'S MOVE WAS TIED TO KIDDER'S DELAY IN LAUNCHING A STANDALONE DERIVATIVES UNIT SELLING AND TRADING COMPLEX DERIVATIVE PRODUCTS ON STOCKS BONDS AND CURRENCIES HAS BECOME A MAJOR SOURCE OF PROFITS FOR MANY WALL STREET INVESTMENT BANKS BY SETTING UP STANDALONE DERIVATIVES SUBSIDIARIES WALL STREET CONCERNS AND COMMERCIAL BANKS HAVE BEEN ABLE TO SNARE COVETED TRIPLEA CREDIT RATINGS FOR THE UNITS THAT ARE ESSENTIAL IN TRADING DERIVATIVES WITH MANY INTERNATIONAL INVESTORS AS PREVIOUSLY REPORTED SOME KIDDER EXECUTIVES HAVE COMPLAINED THAT GENERAL ELECTRIC CO KIDDER'S PARENT HAS SO FAR BALKED AT PUTTING UP THE ROUGHLY 150 MILLION OF CAPITAL NEEDED TO LAUNCH SUCH A UNIT DESPITE MR SANDOR'S DEPARTURE KIDDER OFFICIALS SAY THE COMPANY WILL BE ABLE TO LAUNCH A DERIVATIVES UNIT LATER THIS YEAR THOUGH THEY DECLINE TO DISCUSS THE STRUCTURE OF SUCH A SUBSIDIARY BUT PEOPLE FAMILIAR WITH THE COMPANY SAY IT COULD INVOLVE BASING THE UNIT IN LONDON FOR TAX ADVANTAGES AS WELL AS TRYING TO OBTAIN A TOP CREDIT RATING FOR A PORTION OF THE ENTIRE BROKERAGE CONCERN RATHER THAN JUST THE DERIVATIVES UNIT WE'VE GOTTEN A LOT OF SUPPORT FROM OUR PARENT AND THINGS ARE VERY MUCH ON TRACK SAID MICHAEL CARPENTER KIDDER'S CHIEF EXECUTIVE RICHARD'S RESIGNATION IS ABSOLUTELY NOT TIED TO THAT AND ANYONE WHO SUGGESTS THAT GE IS HOLDING BACK KIDDER'S PLANS TO LAUNCH A DERIVATIVES UNIT MR CARPENTER ADDS IS CATEGORICALLY INCORRECT BEFORE HIS TIME AT KIDDER MR SANDOR WAS PRESIDENT AND CHIEF EXECUTIVE OF INDOSUEZ INTERNATIONAL CAPITAL MARKETS CORP A UNIT OF BANQUE INDOSUEZ EARLIER HE WAS A SENIOR EXECUTIVE AT DREXEL BURNHAM LAMBERT INC MR SANDOR IS CONSIDERED A PIONEER IN FINANCIAL FUTURES DEVELOPING SEVERAL INNOVATIVE FUTURES CONTRACTS THESE INCLUDED FUTURES ON GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR GINNIE MAE CERTIFICATES WHILE HE WAS THE CHIEF ECONOMIST AT THE CHICAGO BOARD OF TRADE IN THE EARLY 1980S MR SANDOR SAID HIS NEW DERIVATIVES COMPANY WILL BE AFFILIATED WITH CENTRE FINANCIAL PRODUCTS A REINSURANCE COMPANY HIS NEW COMPANY WILL DEVELOP AND TRADE NEW INSURANCERELATED DERIVATIVE PRODUCTS MR SANDOR SAID INCLUDING SWAPS AND OTHER INVESTMENT VEHICLES TO HEDGE RISK 9303020061 930302 THE NATIONAL SERVICE' BOONDOGGLE BY DOUG BANDOW PACIFIST WILLIAM JAMES HATED WAR BUT LIKED ITS FRUIT IN 1910 HE PENNED WORDS THAT HAVE BECOME WELLNIGH IMMORTAL CALLING FOR A MORAL EQUIVALENT OF WAR IN WHICH THE MARTIAL VIRTUES WOULD BE INCULCATED IN YOUNG MEN IN PEACETIME OUR GILDED YOUTHS WOULD BE DRAFTED OFF HE WROTE TO GET THE CHILDISHNESS KNOCKED OUT OF THEM AND TO COME BACK INTO SOCIETY WITH HEALTHIER SYMPATHIES AND SOBERER IDEAS JAMES'S VISION BECAME THE FOUNT OF A HOST OF CONTRADICTORY PROPOSALS INVOLVING MILITARY CONSCRIPTION UNIVERSAL CIVILIAN SERVICE AND VOLUNTARY PROGRAMS THE LATEST IS PRESIDENT CLINTON'S PLAN UNVEILED AT RUTGERS YESTERDAY TO PROVIDE AS MANY AS 150000 STUDENTS WITH TWO YEARS OF COLLEGE TUITION FOR EVERY YEAR OF SERVICE IN A GOVERNMENTAPPROVED JOB MR CLINTON'S PROGRAM IS NOTHING NEW IN 1988 THE DEMOCRATIC LEADERSHIP COUNCIL TO WHICH HE BELONGED PROPOSED A MASSIVE CITIZENS CORPS OF YOUNG PEOPLE THE PROGRAM WAS PREMISED ON ALLEGED AMERICAN DECADENCE SELFABSORPTION AND SELFISHNESS INFLAMED DURING THE DECADE OF GREED AS THE 1980S WERE DUBBED CANDIDATE CLINTON WAS TOO INTERESTED IN BEING ELECTED PRESIDENT TO CRITICIZE POTENTIAL VOTERS IN THESE TERMS HOWEVER HE USED MORE POSITIVE RHETORIC TO PROPOSE ALLOWING 250000 OR MORE PEOPLE TO WORK OFF THEIR STUDENT LOANS THROUGH GOVERNMENT SERVICE DEFICIT CONCERNS HAVE CAUSED THE ADMINISTRATION TO PROPOSE STARTING WITH A PILOT PROGRAM TO BE EXPANDED OVER TIME STILL MR CLINTON SAID IN HIS RADIO ADDRESS LAST SATURDAY THAT HE ULTIMATELY WANTS TO REACH HUNDREDS OF THOUSANDS OF STUDENTS SERVICE SEEMS SO OBVIOUSLY A GOOD THING THAT MANY PEOPLE AUTOMATICALLY EMBRACE POLITICIANS WHO USE THE PHRASE NATIONAL SERVICE THE BASIC QUESTION HOWEVER IS SERVICE TO WHOM PROPOSALS FOR NATIONAL SERVICE ASSUME THAT CITIZENS ARE RESPONSIBLE NOT TO EACH OTHER BUT TO THE STATE EVEN VOLUNTARY PROGRAMS LIKE MR CLINTON'S IMPLY A UNITY OF SOCIETY AND STATE WITH WORK FOR THE LATTER EQUATED TO SERVICE TO THE FORMER OPPORTUNITIES FOR GENUINE SERVICE ABOUND ROUGHLY 80 MILLION PEOPLE NOW PARTICIPATE IN SOME VOLUNTEER ACTIVITIES MUCH MORE COULD BE DONE OF COURSE BUT THE REMEDY IS NOT YET ANOTHER FEDERAL PROGRAM ANOTHER BIAS HELD BY NATIONALSERVICE ADVOCATES IS THAT PUBLIC SERVICE IS INHERENTLY BETTER THAN PRIVATE SERVICE WHAT MAKES SHELVING BOOKS IN A LIBRARY MORE LAUDABLE OR VALUABLE THAN STOCKING SHELVES IN A BOOKSTORE PRIVATESECTOR WORKERS HEALTHCARE PROFESSIONALS MEDICAL AND SCIENTIFIC RESEARCHERS BUSINESS ENTREPRENEURS AND INVENTORS ARTISTS PROVIDE ENORMOUS PUBLIC BENEFITS MOREOVER THE IMPLEMENTATION PROBLEMS ARE DIZZYING MR CLINTON SAID THAT HE WOULD NOT ALLOW ANY JOB DISPLACEMENT WHICH WOULD PREVENT PARTICIPANTS FROM PERFORMING THE MOST VALUABLE WORK ANY JOB THAT COULD POSSIBLY BE HANDLED BY A UNION MEMBER WOULD HAVE TO BE EXCLUDED TO AVOID UNREMITTING LABOR OPPOSITION MORE IMPORTANT WHAT WORK WOULD PARTICIPANTS DO TODAY THE PEACE CORPS AND VISTA ALONG WITH THE MORE THAN 60 STATE AND LOCAL PROGRAMS INVOLVE ONLY SOME 18000 PEOPLE HOW WOULD WE EMPLOY 150000 250000 500000 OR MORE PEOPLE THEY WOULD MEET UNMET SOCIAL NEEDS NATIONALSERVICE ADVOCATES RESPOND BUT AS LONG AS HUMAN WANTS ARE UNLIMITED THE REAL NUMBER OF UNMET SOCIAL AS WELL AS BUSINESS NEEDS IS INFINITE IT IS MEANINGLESS TO TALK ABOUT MILLIONS OF UNMET NEEDS AND SINCE LABOR IS NOT A FREE RESOURCE IT WOULD BE EVEN MORE FOOLISH TO TRY TO SATISFY ALL OF THEM THE KEY TO THE NATIONAL SERVICE DEBATE IS OPPORTUNITY COSTS PAYING YOUNG PEOPLE TO SHELVE LIBRARY BOOKS REQUIRES FORGOING BOTH WHATEVER ELSE COULD BE DONE WITH THE MONEY THEY ARE PAID AND WHATEVER ELSE THE PARTICIPANTS WOULD DO INDEED THE CLINTON PROGRAM WOULD DELAY THE ENTRY OF HUNDREDS OF THOUSANDS OF PEOPLE INTO HIGHER EDUCATIONAL STUDIES AND THE WORK FORCE THERE IS NO REASON TO ASSUME THAT A DOLLAR GOING TO NATIONAL SERVICE WILL YIELD MORE BENEFITS THAN AN ADDITIONAL DOLLAR SPENT ON MEDICAL RESEARCH TECHNOLOGICAL INNOVATION OR ANY NUMBER OF OTHER PURPOSES PRIVATE AND PUBLIC ANOTHER PROBLEM INVOLVES THE MILITARY THE END OF THE COLD WAR HAS SLOWED RECRUITING PROVIDING EDUCATIONAL BENEFITS LONG AN IMPORTANT MILITARY VEHICLE FOR ATTRACTING COLLEGECAPABLE YOUTH FOR CIVILIAN WORK MAY HINDER RECRUITING FOR WHAT REMAINS THE MOST FUNDAMENTAL FORM OF NATIONAL SERVICE DEFENDING THE COUNTRY STILL WHAT OF THE SERIOUS PROBLEMS CONFRONTING US IN MANY INSTANCES THE GOVERNMENT BARS EFFECTIVE PRIVATE RESPONSES MINIMUM WAGE LAWS FORBID THE HIRING OF DEDICATED BUT UNSKILLED PEOPLE AND INHIBIT REHABILITATION PROGRAMS LIKE THAT RUN BY THE SALVATION ARMY RESTRICTIONS ON PARATRANSIT OPERATIONS LIMIT PRIVATE TRANSPORTATION FOR THE DISABLED IN ANY CASE ONLY NARROWLY TARGETED RESPONSES ATTRACTING A FEW THOUSAND EXTRA CAREGIVERS FOR THE TERMINALLY ILL FOR INSTANCE ARE LIKELY TO WORK THE PERVASIVE FRAUD AND WASTE ENDEMIC TO PUBLIC SERVICE PROGRAMS LIKE CETA HARDLY AUGUR WELL FOR YET ANOTHER LARGESCALE FEDERAL EFFORT AT SOCIAL ENGINEERING FURTHER IMAGINE THE BUREAUCRACY NECESSARY TO DECIDE WHAT JOBS CONSTITUTE SERVICE WHO WOULD SORT THROUGH UNION OBJECTIONS TO UNFAIR COMPETITION MATCH HUNDREDS OF THOUSANDS OF PARTICIPANTS TO INDIVIDUAL POSTS AND MONITOR THE QUALITY OF PEOPLE'S WORK CONSIDER THE DISASTROUS MESS MADE OF THE STUDENT LOAN PROGRAM BY THE EDUCATION DEPARTMENT NOT SURPRISINGLY THE CONGRESSIONAL RESEARCH SERVICE HAS WARNED THAT THE GOVERNMENT CANNOT ADMINISTER THE PROGRAM AS EFFICIENTLY AS THE PRIVATE SECTOR AN UNWIELDY BUREAUCRACY ENFORCING THE CONTROLS THAT INEVITABLY FOLLOW FEDERAL MONEY IS NOT LIKELY TO PROMOTE INEXPENSIVE AND INNOVATIVE SOLUTIONS TO HUMAN NEEDS EVEN WORSE FEDERAL INVOLVEMENT IS LIKELY TO POLITICIZE PRIVATE HUMANITARIAN ACTIVITIES CONGRESSMEN OPPOSE EFFORTS TO CLOSE LOCAL GOVERNMENT OFFICES INTEREST GROUPS TWIST SOCIAL PROGRAMS TO THEIR BENEFIT LABOR UNIONS BLOCK PROPOSALS TO CONTRACT OUT WORK IMAGINE THE LIKELY INFIGHTING OVER A PROGRAM INVOLVING THE SERVICES OF HUNDREDS OF THOUSANDS OF YOUNG PEOPLE WHAT FOR INSTANCE WILL MR CLINTON SAY WHEN THE DEMOCRATIC PARTY'S FAVORITE POLITICAL SEXUAL AND SOCIAL LOBBIES LIKE ACT UP AND PLANNED PARENTHOOD COME CALLING TO DEMAND THEIR QUOTAS OF SERVICE WORKERS FINALLY MONEY HAS TO BE AN ISSUE WHEN THE PRESIDENT IS CALLING FOR MASSIVE TAX HIKES THE ADMINISTRATION IS INITIALLY PROPOSING TO SPEND 95 BILLION OVER FIVE YEARS BUT THE COSTS COULD ESCALATE QUICKLY PROVIDING PARTICIPANTS WITH TWO YEARS OF SCHOOL FOR EVERY YEAR OF WORK MEANS THAT THEY WILL EARN MORE THAN 60000 SAY 40000 IN TUITION BREAKS AND 20000PLUS IN SALARY AND HEALTH BENEFITS FOR SERVING TWO YEARS THAT'S OVER 9 BILLION FOR 150000 PARTICIPANTS NOT COUNTING THE COSTS OF THE FEDERAL BUREAUCRACY NECESSARY TO MANAGE THE PROGRAM ALAS MR CLINTON'S SCHEME WOULD LIKELY END UP NO BARGAIN IT WOULD EXPAND FEDERAL POWER POLITICIZE THE INDEPENDENT SECTOR INCREASE AN ALREADY NIGHTMARISH DEFICIT AND SIPHON TENS OF THOUSANDS OF YOUNG PEOPLE OUT OF PRODUCTIVE PRIVATE LABOR AND INTO MAKEWORK PROJECTS WHAT WE NEED INSTEAD IS A RENEWED COMMITMENT TO INDIVIDUAL SERVICE SOME PARTTIME SOME FULLTIME SOME THROUGH THE FAMILY SOME THROUGH CHURCHES AND SOME THROUGH CIVIC GROUPS AMERICA'S STRENGTH IS ITS COMBINATION OF HUMANITARIAN IMPULSES PRIVATE ASSOCIATION AND DIVERSITY WHICH IS WHY WE SHOULD KEEP THE NATIONAL OUT OF SERVICE MR BANDOW IS A FELLOW AT THE CATO INSTITUTE HE IS THE AUTHOR OF HUMAN RESOURCES AND DEFENSE MANPOWER PUBLISHED BY NATIONAL DEFENSE UNIVERSITY 9303020060 930302 MARKETSCAN TO BRUSH AWAY MIDDLEAGE MALAISE MALE BABY BOOMERS COLOR GRAYING HAIR BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL MORE AGING MALES ARE FINDING YOUTH IN A BOTTLE AS THE MASCULINE CONTINGENT OF THE BABYBOOM GENERATION CONFRONTS MIDDLE AGE AND OFTEN DOESN'T LIKE WHAT IT SEES IN THE MIRROR A GROWING NUMBER ARE TURNING TO HAIR DYES TO HELP TURN BACK THE CLOCK SOME ARE DARKENING GRAYING TEMPLES TO COMPETE IN A TIGHTER JOB MARKET OTHERS ARE TURNING PEPPERANDSALT INTO GINGER TO SWING INTO THE SINGLES SCENE AFTER A DIVORCE WHATEVER THE REASON MIDDLEAGED MEN TODAY SEEM MORE WILLING THAN PAST GENERATIONS TO TINKER WITH THE WORK OF MOTHER NATURE FAR MORE WOMEN COLOR THEIR HAIR THAN MEN BUT THE MEN'S SEGMENT OF THE OVERALL HAIRCOLORING CATEGORY IS EXPERIENCING SLIGHTLY FASTER GROWTH ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF MEN'S HAIRCOLORING PRODUCTS IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS GREW 9 IN THE 52 WEEKS ENDED JAN 10 TO 614 MILLION SALES OF WOMEN'S HAIR DYES INCREASED 8 TO 6416 MILLION MEN HAVE LOOSENED UP A GREAT DEAL ABOUT THEIR APPEARANCE SAYS JUDITH LANGER PRESIDENT OF LANGER ASSOCIATES INC A NEW YORK MARKETRESEARCH FIRM EVEN SO FUNDAMENTAL RESISTANCE TO COSMETIC USE IS STILL A FORMIDABLE CHALLENGE FOR MARKETERS BENT ON CHANGING MEN'S GROOMING HABITS MEN'S HAIR COLORING IS A TOUGH CATEGORY CONCEDES DOMINIC P DEMAIN VICE PRESIDENT AND MARKETING DIRECTOR OF MEN'S HAIR DYES FOR INDUSTRY KING COMBE INC MEN ESPECIALLY OLDER MEN ARE VERY SET IN THEIR WAYS LOUIS LICARI OWNER OF A CHIC HAIRCOLORING SALON IN NEW YORK NOTES THAT HIS MALE CLIENTS OFTEN SNEAK INTO THE SALON EARLY IN THE MORNING AND BURY THEIR NOSES IN NEWSPAPERS SO THEY WON'T BE RECOGNIZED MEN ARE WHERE WOMEN WERE 20 TO 25 YEARS AGO WHEN THE OLD CLAIROL SLOGAN WAS DOES SHE OR DOESN'T SHE' MR LICARI SAYS THE MEN'S COLORING CATEGORY'S GROWTH LAST YEAR CAME ALMOST ENTIRELY FROM ONE PRODUCT JUST FOR MEN AN INSTANT DYE MADE BY COMBE JUST FOR MEN'S SALES JUMPED 22 LAST YEAR TO 298 MILLION ITS CLOSEST RIVAL CLAIROL INC'S OPTION LINE SUFFERED A 3 DROP IN SALES WHICH INDUSTRY EXECUTIVES ATTRIBUTE TO CLAIROL'S DECISION TO STOP ADVERTISING OPTION PRODUCTS LAST YEAR EXECUTIVES AT CLAIROL A UNIT OF BRISTOLMYERS SQUIBB CO DECLINE TO COMMENT SALES OF COMBE'S GRECIAN FORMULA THE FIRST WIDELY PROMOTED MEN'S COLORING AGENT INCHED UP ONLY 12 FOR THE YEAR TO 111 MILLION RECENTLY PUBLICIZED REPORTS LINKING WOMEN'S HAIR COLORING TO CANCER HAVEN'T HAD ANY MEASURABLE EFFECT ON SALES OF COMBE'S MEN'S PRODUCTS MR DEMAIN SAYS MARKETERS SAY THE RAPID GROWTH OF JUST FOR MEN PROVES THAT GRAYING MEN TODAY VALUE CONVENIENCE OVER CAUTION UNLIKE GRECIAN FORMULA WHICH ENABLES USERS TO GRADUALLY COLOR HAIR OVER A PERIOD OF WEEKS ON THE THEORY IT WON'T BE EASILY NOTICED JUST FOR MEN PROMISES TO DO THE JOB IN FIVE MINUTES THE NOTION OF A SUDDEN TRANSFORMATION DOESN'T BOTHER GRAYING BABY BOOMERS THE WAY IT DID PREVIOUS GENERATIONS SAYS COMBE'S MR DEMAIN EXPLAINING THEY HAVE MORE CONFIDENCE IN MAKING THE DECISION THE QUICKACTING JUST FOR MEN IS ALSO DRAWING A NEW CATEGORY OF USER INTO THE MARKET MEN WHO HAD BEEN USING WOMEN'S HAIR DYES BUT DIDN'T LIKE THE FUSS AND BOTHER MOST WOMEN'S PRODUCTS TAKE ABOUT 30 MINUTES TO COLOR HAIR AND MEN RESIST DEVOTING THAT MUCH TIME TO GROOMING THEY'RE USED TO SPENDING FIVE OR 10 MINUTES ON THEIR GROOMING SAYS ANNE YORK A COMBE SPOKESWOMAN WHO ADDS THAT SOME MEN ALSO FOUND IT HUMILIATING TO SIT AROUND WITH DYE IN THEIR HAIR FOR AN EXTENDED TIME IT OPENED UP A WINDOW OF VULNERABILITY THAT MEN DIDN'T LIKE SHE SAYS JUST FOR MEN SHE ADDS FELL INTO THEIR COMFORTABLE HABIT PATTERN STILL SOME MEN ARE LEERY OF HOME DYES THEY ASSOCIATE DRUGSTORE HAIRCOLORING PRODUCTS WITH THE BAD DYE JOBS THEY HAVE SEEN ON THE OLDER GENERATION NOTABLY OVERTHEHILL CELEBRITIES WHAT'S REALLY FRIGHTENING IS THE THOUGHT OF DOING SOMETHING COSMETIC AND LOOKING LIKE AN IDIOT SAYS PETER RICHARDS A GRAYING ART DIRECTOR IN SEATTLE I LIKE MY GRAY HAIR HE ADDS I FEEL LIKE I'VE EARNED IT BUT GRAY HAIR MAKES MANY YOUNGER MEN FEEL OLD THE GENERATION THAT INVENTED INDEED DEFINED THE YOUTH CULTURE NOW FINDS THE PROSPECT OF AGING ESPECIALLY UNSETTLING BABY BOOMERS' EXPECTATIONS WERE SO HIGH AND THEY WERE CATERED TO FOR SO LONG THAT WHEN THEY SUDDENLY SEE THEY'RE NOT IMMORTAL THEY MAY HAVE A TOUGHER TIME THAN PREVIOUS GENERATIONS SUGGESTS JANE FITZGIBBON SENIOR VICE PRESIDENT OF THE TRENDSIGHTS DIVISION OF ADVERTISING AGENCY OGILVY & MATHER AS THEY FACE ECONOMIC REALITY AND PHYSICAL REALITY MORE MEN ARE RESORTING TO COSMETIC SOLUTIONS MEN ARE MORE WILLING TO DO WHAT THEY CAN TO STAY YOUNGER SAYS TOM JONAS A 40YEAROLD SENIOR VICE PRESIDENT AT A MINNEAPOLIS ADVERTISING AGENCY WHO COLORS HIS GRAY HAIR AT HOME THERE ISN'T AS MUCH STIGMA AS THERE WAS 10 TO 15 YEARS AGO NONETHELESS FEW EXPECT TO SEE THE BOOMING SALES AND PROFITS THAT MARKETERS PREDICTED A FEW YEARS AGO IN THE FOURTH QUARTER OF 1992 SALES GROWTH IN THE MEN'S HAIRCOLORING CATEGORY HAD SLOWED TO 54 WITH SMALLER SALES GAINS OR ACCELERATED DECLINES FOR VIRTUALLY EVERY BRAND COMBE NOTING THAT THE CATEGORY IS ESPECIALLY ADVERTISINGDRIVEN ATTRIBUTES THE SLOWDOWN TO SEASONALLY LOWER AD SPENDING MR DEMAIN ESTIMATES THAT AS MANY AS 10 OF GRAYING MEN DYE THEIR HAIR A PERCENTAGE HE EXPECTS TO REMAIN FAIRLY CONSTANT IN COMING YEARS COMBE IS HEDGING ITS BETS ITS LATEST PRODUCT IS GREAT LOOKING GRAY SHAMPOO WHICH CLAIMS TO WASH AWAY YELLOWING AND BRIGHTEN GRAY HAIR THERE'S SUCH A LARGE POOL OF GRAYHAIRED MEN BUT ONLY A SMALL SEGMENT COLORS THEIR HAIR SAYS MR DEMAIN THE COMPANY IS ALSO TESTING A PRODUCT THAT COLORS MUSTACHES BEARDS AND SIDEBURNS WHERE GRAY USUALLY APPEARS FIRST WITHOUT DISCLOSING SALES FIGURES COMBE CONCEDES THAT GREAT LOOKING GRAY WHICH WAS INTRODUCED IN LATE 1991 IS OFF TO A SLOW START SAYS MR DEMAIN YOU HAVE TO WORK VERY LONG AND HARD TO CONVINCE MEN YOU'RE OFFERING THEM SOMETHING THAT WILL ENHANCE THEIR LOOKS AS MORE MEN WASH AWAY THEIR GRAY COMBE CONTINUES TO WIDEN ITS LEAD IN THE MEN'S HAIRCOLORING MARKET WITH ITS JUST FOR MEN AND GRECIAN FORMULA PRODUCTS BOTH OF CLAIROL'S BRANDS OPTION AND GREAT DAY ARE DECLINING 9303020059 930302 MONDAY'S MARKETS DATA CAUSE BOND PRICES TO RALLY PURCHASERS INDEX LIFTS MARKET INDUSTRIALS FINISH 1540 LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL WEAK ECONOMIC NEWS DROVE BOND PRICES HIGHER AND KNOCKED THE MAJOR STOCK INDEXES LOWER THE DOLLAR GAINED AGAINST MOST MAJOR CURRENCIES THE DOW JONES INDUSTRIAL AVERAGE FELL 1540 TO 335541 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX LOST 137 TO 44201 AND THE NASDAQ COMPOSITE INDEX SLIPPED 126 TO 66951 BOND INVESTORS WERE ENCOURAGED BY YESTERDAY'S DOWNBEAT ECONOMIC NEWS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX DECLINED TO 558 IN FEBRUARY FROM 58 IN JANUARY IT WAS THE FIRST TIME SINCE SEPTEMBER THAT THE INDEX WHICH MEASURES ACTIVITY IN THE MANUFACTURING SECTOR HASN'T INCREASED FROM THE PREVIOUS MONTH IN ADDITION THE NATIONAL ASSOCIATION OF REALTORS SAID SALES OF EXISTING SINGLEFAMILY HOMES SLID 64 IN JANUARY FROM DECEMBER AND THE COMMERCE DEPARTMENT REPORTED THAT CONSTRUCTION SPENDING FELL 13 IN JANUARY FROM DECEMBER ANALYSTS SAID BOND PRICES CONTINUE TO RALLY IN THE BELIEF THAT THE BOND MARKET WILL BENEFIT REGARDLESS OF THE OUTCOME OF PRESIDENT CLINTON'S ECONOMIC PROPOSALS IF MR CLINTON SUCCEEDS IN CUTTING THE DEFICIT GOVERNMENT FINANCING DEMANDS WILL DECLINE MAKING CURRENT LONGTERM TREASURY BONDS MORE VALUABLE AND IF THE NEW TAXES THAT ARE PART OF HIS ECONOMIC PLAN SLOW THE ECONOMY AS SOME ANALYSTS EXPECT INFLATION WILL REMAIN BENIGN DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID THE BOND MARKET IS CERTAINLY IN NEED OF A PAUSE AFTER THE STRONG RALLY OF THE PAST TWO WEEKS BUT HE ADDED ANY WAY THE CLINTON PLAN WORKS OUT THE BOND MARKET WILL BE IN GOOD SHAPE MR JARRETT SAID HE EXPECTS THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE TO FALL TO AS LOW AS 5 OVER THE NEXT FEW YEARS BUT YESTERDAY'S ECONOMIC NEWS AND CONTINUING UNCERTAINTY ABOUT THE CLINTON PROGRAM TRANSLATED INTO A POOR DAY FOR STOCKS C FRAZIER EVANS SENIOR ECONOMIST AT COLONIAL INVESTMENT SERVICES IN BOSTON SAID HE EXPECTS THE CLINTON ECONOMIC POLICIES TO PUT A DRAG ON THE ECONOMY CONSEQUENTLY HE LOWERED HIS 1994 ESTIMATE FOR GROWTH IN GROSS DOMESTIC PRODUCT TO 3 FROM 4 NEVERTHELESS MR EVANS REMAINS BULLISH ON STOCKS LARGELY BECAUSE OF THE LACK OF ATTRACTIVE ALTERNATIVE INVESTMENTS ECONOMICALLY SENSITIVE STOCKS WERE BATTERED YESTERDAY LED BY A STEEP DECLINE IN THE DOW JONES TRANSPORTATION INDEX WHICH PLUNGED 3344 POINTS TO 148466 TRUCKING STOCKS WERE MOSTLY RESPONSIBLE FOR THE DECLINE WITH ROADWAY SERVICES TUMBLING 6 3/4 OR 96 TO 63 1/4 ROADWAY SLID AFTER ANNOUNCING THAT ITS FIRSTQUARTER EARNINGS WOULD BE LOWER THAN EXPECTED WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 012 POINT TO 9503 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2321 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES ON THE BIG BOARD WERE AHEAD OF DECLINERS 1103 TO 852 BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE CLIMBED MORE THAN FIVEEIGHTS OF A POINT OR MORE THAN 625 FOR EACH 1000 FACE AMOUNT TO YIELD 684 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16546 MARKS AND 11874 YEN COMPARED WITH 16455 MARKS AND 11825 YEN FRIDAY 9303020058 930302 CLINTON'S PROGRAM FOR NATIONAL SERVICE WOULD START SMALL EXPAND GRADUALLY BY JEFFREY H BIRNBAUM AND CATHY TROST STAFF REPORTERS OF THE WALL STREET JOURNAL PISCATAWAY NJ PRESIDENT CLINTON UNVEILED HIS MULTIBILLIONDOLLAR NATIONAL SERVICE PROGRAM SAYING IT WILL CHANGE AMERICA FOREVER AND FOR THE BETTER DESPITE THE GRAND WORDS THE PROGRAM HE ENVISIONS WOULD BE PHASED IN GRADUALLY A MERE 1000 YOUNG PEOPLE WOULD BE GIVEN JOBS THIS SUMMER AND THE PROGRAM WOULD SERVE ONLY 25000 STUDENTS IN THE YEAR BEGINNING OCT 1 ITS FIRST FULL YEAR OF OPERATION MR CLINTON SAID HE HOPED THE PROGRAM WOULD BALLOON TO 100000 BY 1997 THOUGH SMALLER THAN THE PRESIDENT HAD LED AUDIENCES TO EXPECT DURING LAST YEAR'S CAMPAIGN THE PROGRAM WAS INTRODUCED WITH A CLINTONESQUE FLAIR HITTING THE ROAD TO PROMOTE THE PLAN THE PRESIDENT FILLED HIS DAY WITH PERSONAL APPEALS AND CLOSETOTHEPEOPLE IMAGES CONVEYED ON TELEVISION AT AN ADULT EDUCATION CENTER HE EMBRACED A WOMAN WHO STARTED CRYING AS SHE SPOKE TO HIM TRAVELING TO HIS SPEECH HE RODE ON A BUS RATHER THAN IN HIS LIMOUSINE IF ADOPTED BY CONGRESS THE PROGRAM WOULD ALLOW STUDENTS TO WORK OFF COLLEGE LOANS BY SERVING LOCAL COMMUNITIES AS TEACHERS POLICE OFFICERS OR SOCIAL WORKERS FOR ONE OR TWO YEARS AFTER GRADUATION STUDENTS COULD DO THEIR SERVICE BEFORE DURING OR AFTER COLLEGE THEY WOULD GET AN EDUCATIONAL BENEFIT TO PAY FOR COLLEGE OR JOB TRAINING OR THEY WOULD BE ALLOWED TO PAY OFF THEIR STUDENT LOANS BY ASSIGNING TO THE GOVERNMENT A SMALL PERCENTAGE OF THEIR INCOME IN ADDITION THEY WOULD GET A SMALL STIPEND AND HEALTH AND CHILD CARE BENEFITS TO PAY FOR THE PROGRAM THE PRESIDENT HAS REQUESTED 74 BILLION OVER THE NEXT FOUR YEARS SPENDING WOULD BEGIN AT 400 MILLION IN FISCAL 1994 WHICH BEGINS OCT 1 AND IT WOULD RISE TO 34 BILLION IN FISCAL 1997 THOUGH PASSAGE OF THE PROGRAM IN SOME FORM IS CONSIDERED HIGHLY LIKELY IT'S UNCLEAR WHETHER CONGRESS WILL APPROVE THE LEVEL OF SPENDING MR CLINTON HAS REQUESTED MR CLINTON CHOSE TO HIGHLIGHT NATIONAL SERVICE YESTERDAY BECAUSE IT WAS THE 32ND ANNIVERSARY OF PRESIDENT KENNEDY'S INTRODUCTION OF THE PEACE CORPS ON WHICH THE CLINTON PROPOSAL WAS MODELED THE PRESIDENT GAVE HIS MAJOR ADDRESS ON THE PLAN AT RUTGERS UNIVERSITY THE SITE OF THE FIRST TRAINING CLASSES FOR PEACE CORPS VOLUNTEERS MR CLINTON INVITED YOUNG PEOPLE TO WRITE TO HIM TO VOLUNTEER FOR THE FLEDGLING PROGRAM ONE OF HIS TOP PRIORITIES BESIDES SPEAKING HERE AND AT AN ADULT EDUCATION CENTER NEARBY MR CLINTON PROMOTED THE PROGRAM ON MTV THE MUSIC VIDEO NETWORK SEEN MOSTLY BY YOUNG PEOPLE VICE PRESIDENT ALBERT GORE AND HIS WIFE TIPPER AS WELL AS THREE CABINET SECRETARIES ALSO STAGED NATIONALSERVICE EVENTS AROUND THE COUNTRY SOME OF THE BUGS HAVEN'T YET BEEN WORKED OUT OF THE PLAN FOR EXAMPLE THE SPENDING IS PREMISED ON A CERTAIN NUMBER OF YOUNG PEOPLE SEEKING AID MR CLINTON SAID YESTERDAY FOR THE FIRST TIME THAT IF TOO MANY PEOPLE SIGN UP A LIMIT WOULD HAVE TO BE IMPOSED COSTS OF SUCH A NATIONAL PROGRAM COULD SOAR ESTIMATES BASED ON EXISTING SMALLER PROGRAMS ARE ABOUT 20000 A YEAR PER PARTICIPANT THOUGH THE ADMINISTRATION WILL SEEK OFFSETTING SAVINGS BY REVAMPING THE STUDENT LOAN PROGRAM EVEN WITH 100000 PARTICIPANTS WE WILL STILL HAVE COVERED ONLY ABOUT 2 OF STUDENTS WHO ARE RECEIVING SOME FORM OF FEDERAL FINANCIAL ASSISTANCE SAID D BRUCE JOHNSTONE CHANCELLOR OF THE STATE UNIVERSITY OF NEW YORK A 64CAMPUS SYSTEM WITH 400000 STUDENTS MR JOHNSTONE CALLED MR CLINTON'S PROPOSAL A GOOD IDEA BUT HE SAID I FEAR IT'S BEING OVERSOLD PARTICULARLY WHEN THE PRESIDENT OF THE UNITED STATES THINKS HE'S SOLVED THE FINANCIALACCESS PROBLEM IN HIGHER EDUCATION THE NEW YORK CHANCELLOR DOESN'T BELIEVE THE PROGRAM WOULD DO MUCH TO MAKE COLLEGE MORE ACCESSIBLE OR AFFORDABLE I THINK CLEARLY PEOPLE ARE GOING TO HAVE A LOT OF QUESTIONS BUT IT SHOULD BE ACCEPTED AS A PRINCIPLE SAID ROGER HULL PRESIDENT OF UNION COLLEGE IN SCHENECTADY NY WHICH HAS A SMALL PROGRAM OFFERING LOAN FORGIVENESS TO GRADUATES IN PUBLIC SERVICE JOBS WE ALL HAVE AN OBLIGATION TO GIVE SOMETHING BACK AND THIS IS A GOOD WAY OF ENCOURAGING THAT MR CLINTON SEEMED CERTAIN THAT YOUNG PEOPLE WILL RESPOND HE CALLED THIS THE BEGINNING OF THE SEASON OF SERVICE AND PREDICTED THAT MANY YOUNG PEOPLE WILL ANSWER THE CALL TO SERVICE CONGRESSIONAL SUPPORT FOR THE PROPOSED PROGRAM APPEARS STRONG STANDING WITH THE PRESIDENT AS HE ANNOUNCED HIS PROGRAM WERE THE CHAIRMEN OF THE HOUSE AND SENATE COMMITTEES THAT MUST CONSIDER THE LEGISLATION AS WELL AS THREE DEMOCRATIC SENATORS HARRIS WOFFORD OF PENNSYLVANIA CHRISTOPHER DODD OF CONNECTICUT AND JAY ROCKEFELLER OF WEST VIRGINIA WHO SERVED WITH THE PEACE CORPS OR ITS DOMESTIC COUNTERPART VISTA MR CLINTON INTENDS THIS SPRING TO INTRODUCE LEGISLATION TO ESTABLISH THE PROGRAM BUT YESTERDAY HE WAS GIVING YOU A COMMERCIAL OUT THERE SAID REP WILLIAM FORD D MICH SUCH MARKETING IS NECESSARY MR FORD SAID NOTHING WILL HAPPEN UNLESS THE PEOPLE ARE TURNED ON AND DECIDE TO PARTICIPATE 9303020057 930302 TECHNOLOGY BRIEF AMERITECH CORP NEW UNIT TO PROVIDE SYSTEMS FOR HEALTHCARE FACILITIES AMERITECH CORP THE REGIONAL TELEPHONE COMPANY SERVING THE GREAT LAKES AREA SAID IT FORMED A UNIT TO PROVIDE COMMUNICATIONS NETWORKS FOR HEALTHCARE FACILITIES THE DIVISION CALLED HEALTH CONNECTIONS WILL SET UP NETWORKS THAT LINK HOSPITALS CLINICS AND DOCTORS' OFFICES EITHER LOCALLY OR THROUGHOUT A WIDER AREA USING THE NETWORKS DOCTORS TECHNICIANS AND OTHERS CAN SEND AND RECEIVE PATIENT RECORDS BILLING INFORMATION AND OTHER DATA LAST YEAR CHICAGOBASED AMERITECH STARTED A PROTOTYPE SERVICE THE WISCONSIN HEALTH INFORMATION NETWORK IN MILWAUKEE AND THE COMPANY INTENDS TO DUPLICATE THAT SYSTEM IN OTHER CITIES HEALTH CONNECTIONS CAN IMPROVE THE EXCHANGE OF CLINICAL DATA AND SIMPLIFY ADMINISTRATIVE FUNCTIONS IN THE HEALTH CARE INDUSTRY SAID R JOSEPH SULLIVAN WHO HEADS THE DIVISION PATIENTS PROVIDERS EMPLOYERS AND INSURANCE CARRIERS ALL CAN BENEFIT BECAUSE OF COST SAVINGS AND IMPROVED QUALITY OF HEALTH CARE 9303020056 930302 BUSINESS BRIEF LVI GROUP INC FIRM TO TRADE BIGGEST UNIT FOR FORGIVENESS OF ITS DEBT LVI GROUP INC SAID IT PLANS TO SPIN OFF ITS PRINCIPAL SUBSIDIARY LVI ENVIRONMENTAL SERVICES GROUP INC TO THE COMPANY'S NOTEHOLDERS IN EXCHANGE FOR FORGIVENESS OF ABOUT 416 MILLION IN DEBT NEW YORKBASED LVI IS CURRENTLY IN DEFAULT OF CERTAIN COVENANTS IN ITS DEBT AGREEMENTS THE DEBT IS COLLATERALIZED BY LVI ENVIRONMENTAL AN ASBESTOSABATEMENT BUSINESS THAT ACCOUNTS FOR 75 OF THE COMPANY'S ANNUAL REVENUE AND ITS OTHER SUBSIDIARY HALLMARK ELECTRICAL SUPPLIES CORP WHICH ACCOUNTS FOR 25 OF REVENUE LVI ENVIRONMENTAL AND HALLMARK ARE CURRENTLY OWNED BY NICO INC A HOLDING COMPANY OWNED BY THE LVI GROUP IF THE AGREEMENT TO SPIN OFF LVI ENVIRONMENTAL IS APPROVED BY 95 OF NICO'S NOTEHOLDERS A NEW COMPANY LVI HOLDING CORP WILL TAKE CONTROL OF LVI ENVIRONMENTAL UNDER THE TERMS OF THE AGREEMENT LVI HOLDING WILL HAVE THE OPTION OF EXERCISING WARRANTS 2 1/2 YEARS FROM NOW THAT WOULD ALLOW IT TO PURCHASE 49 OF THE EQUITY IN HALLMARK 9303020055 930302 BUSINESS BRIEF GENERAL CABLE CORP UNITED STEELWORKERS STRIKE THREE COMPANY FACILITIES GENERAL CABLE CORP HIGHLAND HEIGHTS KY SAID 330 MEMBERS OF THE UNITED STEELWORKERS OF AMERICA WENT ON STRIKE AT TWO PLANTS MAKING WIRE AND CABLE IN LINCOLN AND PAWTUCKET RI AND A WAREHOUSE IN WARREN RI THE ELECTRICAL WIRE AND CABLE CONCERN SAID IT EXPECTS TO MAINTAIN DELIVERIES TO CUSTOMERS BY CALLING ON SALARIED STAFF TO RUN THE FACILITIES AND DRAWING ON CAPACITY AT ITS 17 OTHER PLANTS IT ALSO SAID IT PLANS TO BEGIN HIRING PERMANENT REPLACEMENTS FOR THE STRIKING WORKERS THIS WEEK BILL KENNEDY A SUBDISTRICT DIRECTOR FOR THE STEELWORKERS CALLED THE PLAN TO HIRE REPLACEMENTS VICIOUS THE PREVIOUS UNION CONTRACT EXPIRED SUNDAY AND UNION AND COMPANY SPOKESMAN SAID TALKS STALLED OVER MEDICAL INSURANCE WORK RULES SENIORITY AND OTHER ISSUES THE COMPANY WHICH WAS SPUN OFF LAST JULY FROM PENN CENTRAL CORP ALSO SAID IT NARROWED ITS LOSS TO 398 MILLION DOWN 57 FROM A LOSS OF 935 MILLION IN THE FOURTH QUARTER OF 1992 FOR THE YEAR IT REPORTED A LOSS OF 644 MILLION OR 615 A SHARE DOWN 43 FROM 113 MILLION IN 1992 SALES FOR THE QUARTER WERE 254 MILLION UP 4 FROM 243 MILLION IN THE FOURTH QUARTER OF 1991 WHILE SALES FOR ALL OF 1992 WERE 969 MILLION DOWN 5 FROM 102 BILLION IN 1991 9303020054 930302 HEARD ON THE STREET HEDGE FUND STARS CONTINUE TO SHINE BUT HORDE OF NEWCOMERS CLOUDS HORIZON BY JOHN R DORFMAN AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL HEDGE FUNDS THOSE HIGHRISK HIGHREWARD PRIVATE INVESTMENT PARTNERSHIPS ARE POPPING UP LIKE WILDFLOWERS MORE THAN 800 DOT THE INVESTMENT LANDSCAPE ROUGHLY DOUBLE THE NUMBER OF A FEW YEARS AGO A LOT OF INVESTORS IMAGINE THAT IF ONLY THEY COULD INVEST IN ONE OF THESE TANTALIZING FUNDS THEY WOULD BE ON THE ROAD TO RICHES BUT ALAS THE NEWER HEDGE FUNDS THAT WILL ACCEPT ANY OLD MILLIONAIRE OFTEN DON'T PERFORM AS WELL AS THE WORLDFAMOUS FEW THAT HAVE GIVEN HEDGEFUND INVESTING ITS GLITTERING AURA SOME OLDTIMERS REGARD THE BURGEONING NUMBER OF HEDGE FUNDS AS A SIGN OF AN OVERHEATING STOCK MARKET THEY REMEMBER HOW HEDGE FUNDS FLOWERED IN THE REDHOT MARKET OF THE LATE 1960S AND EARLY 1970S MANY OF THEM FOLDED IN THE BEAR MARKET OF 197374 TODAY THERE ARE PROBABLY 50 OR 60 OR MAYBE EVEN 100 NEW GUYS THRASHING AROUND FOLLOWING THE SMART GUYS CREATING HUGE CLOUDS OF DUST AND CHURNING UP THE FAIRWAY SO IT'S MUCH HARDER FOR EVEN THE GREAT PLAYERS TO MAKE MONEY SAYS BARTON BIGGS A STRATEGIST AT MORGAN STANLEY HE'S TALKING ABOUT HEDGE FUNDS THAT OPERATE WORLDWIDE A REALM WHERE UNTIL RECENTLY ONLY A DOZEN OR SO PLAYERS TRULY KNEW WHAT THEY WERE DOING THE LURE OF A HEDGE FUND BEGINS WITH EXCLUSIVITY TO AVOID HAVING TO REGISTER WITH THE SECURITIES AND EXCHANGE COMMISSION EACH FUND ACCEPTS AT MOST 100 SOPHISTICATED INVESTORS WITH HIGH NET WORTH ANOTHER ATTRACTION IS A FREESWINGING INVESTMENT STYLE HEDGE FUNDS CAN USE A BROADER ARSENAL OF TECHNIQUES THAN CONVENTIONAL MONEY MANAGERS SUCH AS INVESTING WITH BORROWED MONEY OR BETTING THAT SOME ASSETS WILL DECLINE HENCE THE NAME HEDGE FUNDS A BIG PART OF HEDGE FUNDS' CACHET COMES FROM THE STAGGERING RETURNS AMASSED BY A FEW FAMOUS HEDGEFUND MANAGERS SUCH AS GEORGE SOROS OF QUANTUM FUND MICHAEL STEINHARDT OF STEINHARDT PARTNERS AND JULIAN ROBERTSON OF TIGER FUND LAST YEAR THIS FAMOUS TRIO WAS UP TO ITS OLD TRICKS MR SOROS'S FUND WHICH IS OPEN ONLY TO FOREIGN INVESTORS ROSE 675 MR STEINHARDT WAS UP ABOUT 50 AND MR ROBERTSON 272 HEDGEFUND MANAGERS HAVE GOOD REASON TO ACT BOLDLY CONVENTIONAL MANAGERS GET A FEE OF ABOUT 1 OF ASSETS MANAGED NO MATTER HOW THOSE ASSETS PERFORM BUT HEDGEFUND MANAGERS TYPICALLY GET 20 OF PROFITS GIVING THEM AN INCENTIVE TO SWING FOR THE FENCES HEDGEFUND MANAGERS ALSO INCUR DEBT FEARLESSLY FOR EVERY CLIENT'S DOLLAR THEY TAKE IN THEY MAY HAVE 2 TO 40 AT WORK IN THE MARKETS THIS GREATLY MAGNIFIES INVESTMENT GAINS OR LOSSES AS THEY TRADE STOCKS BONDS COMMODITIES OPTIONS AND FUTURES IN THE US AND ABROAD ALL THIS SOUNDS PRETTY EXCITING BUT UNFORTUNATELY THE AVERAGE PERSON CAN'T GO OUT AND HIRE THE LIKES OF MR SOROS OR MR STEINHARDT A LOT OF THE REALLY HIGHQUALITY PEOPLE AREN'T ACCESSIBLE SAYS ONE CONSULTANT SO WHAT YOU'RE DEALING WITH IS UNPROVEN TALENT LESSERKNOWN MANAGERS MAY ACCEPT ACCOUNTS AS SMALL AS 250000 OR EVEN 100000 BUT THEIR TRACK RECORDS ARE SHORTER AND THEIR RESULTS MORE UNEVEN LAST YEAR JAMES MARQUEZ OF JGM A MANAGER WHO WAS A PROTEGE OF BOTH MR SOROS AND MR STEINHARDT WAS DOWN CLOSE TO 40 HEDGEFUND TRACKERS REPORT MR MARQUEZ HAS BOUNCED BACK STRONGLY THIS YEAR THEY SAY WITH A GAIN OF ABOUT 30 YEARTODATE DAN MARINO CONTROLLER OF JGM SAYS HE CAN'T CONFIRM OR DENY THOSE NUMBERS BECAUSE THE 1992 AUDIT ISN'T YET COMPLETE AND REPORTS HAVEN'T BEEN SENT TO THE PARTNERSHIP'S INVESTORS MR MARQUEZ DECLINED TO BE INTERVIEWED YESTERDAY AT TWIN ALPHA WHICH SUSTAINED A 2 LOSS LAST YEAR MANAGER GEOFFREY GERBER SAYS HE RELIED HEAVILY ON DATA DEALING WITH CHANGES IN WALL STREET ANALYSTS' EARNINGS EXPECTATIONS EXPECTATIONAL DATA HAD WORKED WELL FOR A COUPLE OF YEARS BUT FIZZLED IN 1992 HE SAYS WHILE IT'S FRUSTRATING AND CERTAINLY PAINFUL TO HAVE A NEGATIVE YEAR HOPEFULLY OUR CLIENTS ARE LOOKING FOR LONGTERM RETURN BASED IN PITTSBURGH TWIN ALPHA MANAGES ABOUT 225 MILLION THOUGH ITS HEDGE FUND WAS BEGUN ONLY ABOUT A YEAR AGO ITS CONVENTIONAL MONEY MANAGEMENT OPERATIONS STARTED IN 1989 AND HAVE RETURNED ABOUT 86 A YEAR USING A LOWRISK MARKETNEUTRAL STRATEGY THAT TRIES TO BALANCE BEARISH AND BULLISH BETS MR GERBER SAYS SIMILARLY BOB ROSS MANAGER OF STARBOARD LP WHICH WAS DOWN 8 LAST YEAR CHARACTERIZES HIS APPROACH AS LOWRISK AND MARKETNEUTRAL HE SAYS IT WAS HARD TO MAKE MONEY LAST YEAR BECAUSE OF STOCKS' UNUSUALLY LOW VOLATILITY ROBERT DOVIAK WHO RUNS DOVIAK PARTNERS WAS DOWN ABOUT 5 LAST YEAR FOLLOWING A 20 LOSS IN 1991 HE HAD GAINED ABOUT 25 IN 1990 SO HIS INVESTORS ARE ABOUT WHERE THEY WERE THREE YEARS AGO MR DOVIAK SAYS HE WILL LEAVE OUT THE CUSS WORDS IN HIS EXPLANATION WHICH IS THAT HE WAS HURT BY THE MARKET'S TENDENCY TO PUSH UP OVERVALUED STOCKS LIKE ROSS COSMETICS WISCONSIN PHARMACAL AND DELL COMPUTER THIS YEAR HE SAYS HE IS TAKING MORE LONG POSITIONS AND DOING MORE SHORTTERM TRADING BECAUSE HEDGE FUNDS ARE PRIVATE PARTNERSHIPS INFORMATION ON THEM IS MUCH HARDER TO COME BY THAN MUTUAL FUND DATA AGGREGATE FIGURES ON HEDGEFUND PERFORMANCE MAY OMIT LITTLE HEDGE FUNDS THAT HAVE FALLEN BY THE WAYSIDE IF A HEDGE FUND HAS AN AWFUL YEAR AND THEREFORE GETS NO PERFORMANCE FEE ITS MANAGER MAY JUST CLOSE UP SHOP AND START ANOTHER FUND SAYS HARRY STRUNK A PRUDENTIAL SECURITIES BROKER AND CONSULTANT THERE'S A LOT OF THEM DYING ALL THE TIME AT THE SAME TIME IT'S UNDENIABLE THAT QUITE A FEW HEDGE FUND OPERATORS HAVE TURNED IN TERRIFIC PERFORMANCES LATELY GARIC MORAN OF HAWKEYE FUND FOR EXAMPLE REPORTED A 62 RETURN LAST YEAR AND A RETURN OF ABOUT 20 YEARTODATE HE CHALKED UP BIG GAINS IN CHRYSLER AND INTEL AND ALSO MADE MONEY SHORTING TECHNOLOGY AND MEDICAL STOCKS SUCH AS BORLAND INTERNATIONAL CENTOCOR AND DELL LAST YEAR HE HAD MORE LONG POSITIONS STOCKS PURCHASED FOR POTENTIAL GAINS THAN SHORT SALES OR BEARISH BETS BUT NOW HE IS ABOUT HALF LONG HALF SHORT WE ARE IN THE VERY LATE STAGES OF A BULL MARKET SAYS MR MORAN ALL THE STOCKS THAT WORKED IN THE '80S ARE NOW HISTORY I'M DEFINITELY PLAYING THE CYCLICAL SIDE ANTICIPATING A STRONGER ECONOMIC RECOVERY AND MORE INFLATION THAN MOST PEOPLE EXPECT HE IS MAKING A MAJOR BET ON ENERGY STOCKS BUYING OFFSHORE PIPELINES TIDEWATER HORNBECK OFFSHORE SERVICES POGO PRODUCING ENRON OIL & GAS ORYX ENERGY AND APACHE HE STILL OWNS CHRYSLER AND INTEL BUT HAS SOLD A PORTION OF HIS HOLDINGS AMONG HIS CURRENT SHORT SALES MR MORAN SAYS ARE WELLFLEET COMMUNICATIONS 3COM CHYRON AND RETAILING GIANT WALMART STORES THOUGH THE LAST IS A SMALL POSITION HE RECENTLY SHORTED US TREASURY BONDS CLINTON'S PROPOSALS ARE MORE INFLATIONARY THAN PEOPLE BELIEVE HE SAYS AND WITH 30YEAR TREASURYS NOW YIELDING LESS THAN 7 THE TOTAL RETURN ON TREASURY BONDS IS GETTING CLOSE TO ZERO AFTER TAXES AND INFLATION AS THE ACCOMPANYING TABLE SHOWS THE BESTKNOWN HEDGEFUND MANAGERS CHALKED UP RETURNS OF 25 TO 68 LAST YEAR FAR ABOVE THE 7 TO 8 INVESTORS WOULD HAVE MADE IN A US STOCKINDEX FUND QUANTUM FUND CLEANED UP BY BETTING THAT THE BRITISH POUND AND THE ITALIAN LIRA WOULD FALL HARD AGAINST THE GERMAN MARK IT ALSO WON BIG ON MAMMOTH HOLDINGS OF BONDS ON THE STOCK SIDE MR SOROS MADE SOME MONEY IN LATIN AMERICAN STOCKS AND IN HOME DEPOT STEINHARDT PARTNERS HAD INVESTED IN CLOSELY HELD SUNBEAM OSTER THE SMALLAPPLIANCE MAKER THAT INVESTMENT PAID OFF BIG LAST YEAR WHEN THE COMPANY STREAMLINED AFTER A SPELL AS A CLOSELY HELD VENTURE SOLD STOCK TO THE PUBLIC MR STEINHARDT ALSO MADE A LOT OF MONEY IN TWOYEAR TREASURY NOTES PURCHASED ON LEVERAGE RUMORED TO BE AS HIGH AS 40TO1 TIGER FUND WAS CAUGHT SHORTING JAPANESE STOCKS WHEN THE TOKYO MARKET BRIEFLY ROARED TO LIFE LAST YEAR BUT LATE IN THE YEAR IT REGAINED ITS LOST GROUND AND MORE BETTING THAT THE DOLLAR WOULD STRENGTHEN AGAINST OTHER CURRENCIES INCLUDING THE MARK INVESTMENT PERFORMANCE OF SELECTED HEDGE FUNDS IN 1992 ACCORDING TO INDUSTRY CONSULTANTS MINIMUM INVESTMENT FOR MOST FUNDS IS 250000 OR MORE CHIRON CORP A BIOTECHNOLOGY COMPANY WAS SOLD SHORT IN A BEARISH BET BY HAWKEYE FUND YESTERDAY'S HEARD ON THE STREET COLUMN MISSTATED THE STOCK NAME AS CHYRON CORP AN UNRELATED COMPANY THAT MAKES TELEVISION GRAPHICS SYSTEMS 9303020053 930302 BUSINESS BRIEF BRAMALEA LTD BANKRUPTCY COURT APPROVES PLAN TO RESTRUCTURE DEBT BRAMALEA LTD SAID IT RECEIVED FINAL APPROVAL FROM AN ONTARIO BANKRUPTCY COURT FOR THE COMPANY'S PLAN TO RESTRUCTURE ITS 46 BILLION CANADIAN DOLLARS US368 BILLION OF LONGTERM DEBT CREDITORS TO THE TORONTO REALESTATE CONCERN VOTED TO APPROVE THE PLAN LAST MONTH BRAMALEA SAID IT EXPECTS TO EMERGE FROM CANADIAN BANKRUPTCYCOURT PROTECTION LATER THIS MONTH UNDER THE RESTRUCTURING PLAN BRAMALEA PLANS TO SELL OVER THE NEXT FIVE YEARS ABOUT A THIRD OF ITS C6 BILLION IN PROPERTY ASSETS WHICH ARE LOCATED MAINLY IN ONTARIO AND SOUTHERN CALIFORNIA CREDITORS ALSO WILL RECEIVE NEW EQUITY IN THE COMPANY RESULTING IN A DILUTION OF MAJOR SHAREHOLDER TRIZEC CORP'S STAKE TO 20 FROM 72 CURRENTLY TRIZEC IS A CALGARY ALBERTA REAL ESTATE CONCERN CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN 9303020052 930302 BUSINESS BRIEF COLLINS INDUSTRIES INC FIRM INVESTIGATES ALLEGATION NET FOR YEAR WAS OVERSTATED COLLINS INDUSTRIES INC SAID IT APPOINTED A COMMITTEE OF OUTSIDE DIRECTORS TO INVESTIGATE AN ALLEGATION THAT ITS FISCAL 1992 NET INCOME WAS OVERSTATED AND ADDED THAT EVIDENCE INDICATES A CORRECTIVE ADJUSTMENT WILL BE NECESSARY THE HUTCHINSON KAN AMBULANCE MAKER SAID IT BELIEVES AN ADJUSTMENT WILL NOT EXCEED THE 11 MILLION OR 20 CENTS A SHARE IN NET IT POSTED FOR THE YEAR ENDED OCT 31 PRESIDENT DON COLLINS SAID EVIDENCE INDICATED THAT SUPPLIER INVOICES FOR 1992 WERE NOT RECORDED UNTIL AFTER THE CLOSE OF THE FISCAL YEAR THE COMMITTEE WAS APPOINTED BECAUSE OF EVIDENCE THAT SOMEONE KNEW THIS WAS A PROBLEM AND DIDN'T REPORT IT HE SAID THERE IS NO PROBLEM WITH CURRENT OPERATIONS NO CASH PROBLEM NO DISASTER OF ANY KIND MR COLLINS SAID THE ALLEGATION WAS MADE FOLLOWING THE FIRM'S ANNUAL MEETING FRIDAY THE COMPANY SAID BUT IT DECLINED TO SPECIFY THE SOURCE OF THE ALLEGATION MR COLLINS SAID THE FIRM WOULD NOT COMMENT ON POSSIBLE SUSPENSIONS OF EMPLOYEES IN NATIONAL OVERTHECOUNTER TRADING MONDAY COLLINS SHARES FELL SHARPLY CLOSING AT 375 DOWN 125 9303020051 930302 BUSINESS BRIEF GENERAL MOTORS CORP TOTAL OF 14500 CARS BUSES ARE RECALLED BY AUTO MAKER GENERAL MOTORS CORP SAID IT IS RECALLING 7000 CARS BECAUSE OF DEFECTIVE HEADLIGHTS AND RECALLING 7500 SCHOOL BUSES BECAUSE THE THROTTLE COULD STICK OPEN THE CAR MAKER SAID IT WASN'T AWARE OF ACCIDENTS OR INJURIES IN EITHER RECALL THE HEADLIGHT RECALL INVOLVES APPROXIMATELY 7000 1991MODEL PONTIAC GRAND PRIX COUPES IN CERTAIN CONDITIONS THE FOG LAMPS LOWBEAM HEAD LAMPS AND HIGHBEAM HEAD LAMPS CAN BE OPERATED SIMULTANEOUSLY IN THESE VEHICLES OVERLOADING THE HEAD LAMP CIRCUIT BREAKER AND KNOCKING OUT THE HEAD LAMPS THE SECOND RECALL INVOLVES APPROXIMATELY 7500 CHEVROLET AND GMC TRUCK 198991MODEL B6 AND 1993MODEL B7 SCHOOL BUS CHASSIS UNITS EQUIPPED WITH 6LITER ENGINES THESE VEHICLES COULD EXHIBIT A CONDITION THAT COULD ALLOW THE THROTTLE CAM LEVER TO DISENGAGE FROM THE THROTTLE DRIVE SHAFT ALLOWING THE ENGINE TO GO TO WIDE OPEN THROTTLE IN BOTH RECALLS THE VEHICLES WILL BE INSPECTED AND FIXED IF NECESSARY BY GM DEALERS 9303020050 930302 BUSINESS BRIEF REPSOL SA SPAIN ENERGY CONCERN POSTS 18 RISE IN PROFIT FOR 1992 SPAIN'S STATERUN OIL AND GAS CONCERN REPSOL SA REPORTED THAT CONSOLIDATED NET INCOME EDGED UP 18 IN 1992 TO 7143 BILLION PESETAS 6048 MILLION FROM 7017 BILLION PESETAS IN 1991 THE COMPANY SAID IT WAS ABLE TO KEEP EARNINGS STABLE DURING TOUGH TIMES BECAUSE OF THE PROFITABILITY OF INVESTMENTS MADE OVER THE LAST SEVERAL YEARS AND BECAUSE OF THE GROWING IMPACT OF EFFORTS MADE TO REDUCE COSTS THE COSTCUTTING MEASURES INCLUDED TRIMMING THE WORK FORCE TO 19632 EMPLOYEES BY THE END OF 1992 FROM 21627 IN 1991 REPSOL SAID SUCCESSFUL EXPLORATION ACTIVITIES HIGHER PRODUCTION LEVELS AND STRONGER MARGINS PER BARREL BOOSTED OPERATING PROFIT REPSOL SAID ON FRIDAY THE SPANISH CABINET GAVE REPSOL THE GREEN LIGHT TO PLACE AS MANY AS 40 MILLION SHARES OR 13 OF SHARE CAPITAL ON INTERNATIONAL MARKETS THE PLACEMENT IS EXPECTED BEFORE THE END OF MAY THE STATE HOLDING COMPANY INSTITUTO NACIONAL DE HIDROCARBUROS OWNS A 545 STAKE IN REPSOL 9303020049 930302 FUGITIVE CHIEF OF THRIFT THAT FAILED IS ARRESTED BALTIMORE AP THE FUGITIVE HEAD OF A FAILED SAVINGSANDLOAN COMPANY WAS CAPTURED YESTERDAY IN PARIS WHERE HE HAD BEEN LIVING LAVISHLY ON 22 MILLION ALLEGEDLY SIPHONED FROM THE THRIFT ACCORDING TO FEDERAL PROSECUTORS TOM BILLMAN ON THE RUN FOR ABOUT FIVE YEARS WAS CARRYING A BRITISH PASSPORT WITH A FAKE NAME WHEN ARRESTED OUTSIDE HIS PARIS APARTMENT SAID STEVE HESS A SPOKESMAN FOR THE US ATTORNEY'S OFFICE IN MARYLAND MR BILLMAN 52 YEARS OLD HEADED THE BETHESDABASED COMMUNITY SAVINGS & LOAN UNTIL IT FAILED DURING MARYLAND'S 1985 SAVINGSANDLOAN CRISIS THE THRIFT'S 20000 DEPOSITORS WERE DEPRIVED OF THEIR MONEY UNTIL THE STATE BAILED THEM OUT THE FORMER GREAT FALLS VA RESIDENT IS TO BE EXTRADITED TO THE US MR BILLMAN DISAPPEARED IN 1988 FOLLOWING A 112 MILLION JUDGMENT AGAINST HIM FOR MISUSING THE INSTITUTION'S MONEY IN 1989 HE WAS INDICTED ON CHARGES OF DEFRAUDING DEPOSITORS OF MORE THAN 106 MILLION SOME OF THAT MONEY 22 MILLION ALLEGEDLY WENT TO SWISS BANK ACCOUNTS CONTROLLED BY MR BILLMAN INVESTIGATORS SAID HE FACES A TOTAL OF 115 YEARS IN PRISON AND FINES AMOUNTING TO 4750000 IF CONVICTED OF CONSPIRACY FRAUD AND RACKETEERING CHARGES 9303020048 930302 WHAT'S NEWS BUSINESS AND FINANCE A CORPORATE TAX ON EMPLOYERPROVIDED HEALTH BENEFITS TO HELP PAY FOR EXTENDING HEALTH COVERAGE TO ALL AMERICANS IS BEING CONSIDERED BY CLINTON SOME ADVISERS BELIEVE IT WOULD BE LESS POLITICALLY DANGEROUS TO SUGGEST A TAX ON EMPLOYERS THAN TO IMPOSE LEVIES ON EMPLOYEES WHO RECEIVE HIGHPRICED COVERAGE CORPORATE HEALTH COSTS ROSE 101 IN 1992 REFLECTING MANAGED CARE PROGRAMS A NEW SURVEY SAYS IT WAS THE LOWEST RATE OF INCREASE IN FIVE YEARS MANUFACTURING ACTIVITY GREW AT A SLOWER PACE IN FEBRUARY A PURCHASING GROUP SAID SEPARATELY THE GOVERNMENT SAID CONSTRUCTION SPENDING EASED 13 IN JANUARY DISPOSABLE INCOME WAS UNCHANGED WHILE 01 LESS WAS SPENT ON GOODS AND SERVICES SINGLEFAMILY HOME SALES FELL 64 IN JANUARY FROM DECEMBER BUT BROKERS SAID THE MARKET REMAINS STRONG BENTSEN SAID THAT DESPITE THE SURPRISING STRENGTH OF THE ECONOMY IN THE FOURTH QUARTER THE ADMINISTRATION ISN'T BACKING AWAY FROM ITS PLAN TO STIMULATE THE ECONOMY WITH 30 BILLION OF SPENDING INCREASES AND TAX CUTS MANY COMPANIES QUICKLY RESUMED BUSINESS IN THE WAKE OF THE WORLD TRADE CENTER EXPLOSION THANKS TO AN ABUNDANCE OF NEARBY OFFICE SPACE LAWYERS EXPECT A FLOOD OF SUITS TO BE FILED BY THOSE AFFECTED BY THE BLAST COMMODITY EXCHANGES OPENED FOR TRADING BUT OFFICIALS CUT SHORT ACTIVITY IN SOME MARKETS DUE TO FEARS THAT A SHARED COMPUTER MIGHT OVERHEAT MICHAEL GARTNER IS EXPECTED TO RESIGN AS PRESIDENT OF NBC NEWS PERHAPS AS EARLY AS TODAY HIS DEPARTURE WOULD FOLLOW THE NETWORK'S ONAIR APOLOGY TO GENERAL MOTORS AFTER THE AIRING OF A PIECE ON THE SAFETY OF GM TRUCKS RJR NABISCO IS EXPECTED TO ANNOUNCE TODAY PLANS TO CREATE A SEPARATE CLASS OF STOCK TIED TO THE PERFORMANCE OF ITS NABISCO FOOD BUSINESS BOND PRICES ROSE WITH THE TREASURY'S 30YEAR ISSUE CLIMBING 5/8 POINT TO YIELD 684 THE DOW JONES INDUSTRIALS FELL 1540 TO 335541 IN HEAVY TRADING THE DOLLAR GAINED GROUND THE EEOC WARNED EMPLOYERS IT WILL BE COSTLY TO SINGLE OUT OLDER WORKERS IN LAYOFFS THE ADMONITION CAME AS THE AGENCY SETTLED A CASE INVOLVING MCDONNELL DOUGLAS NORTHWEST AIRLINES OFFERED UNION EMPLOYEES A CONTRACT THAT WOULD GIVE THEM A 20 STAKE AND THREE OF 15 BOARD SEATS IN RETURN FOR CONCESSIONS BUT THE OFFER FELL SHORT OF UNION DEMANDS BRAZIL'S FINANCE MINISTER RESIGNED FUELING SPECULATION OF NEW MEASURES TO CURB RUNAWAY INFLATION IN THE THIRD WORLD'S MOST INDEBTED NATION THE UNITED MINE WORKERS UNION EXPANDED ITS MONTHLONG STRIKE BEYOND PEABODY HOLDING CO TARGETING MINES OF FIVE OTHER MAJOR PRODUCERS CANADA'S ECONOMIC RECOVERY ACCELERATED IN THE FOURTH QUARTER GROSS DOMESTIC PRODUCT ROSE AT A 35 PACE UP FROM 12 IN THE THIRD QUARTER CANADIAN NATIONAL RAILWAYS PLANS A 720 MILLION CHARGE TO TRIM 11000 JOBS IN CANADA AND THE US OVER THREE YEARS SIGNALING A MAJOR OVERHAUL OF CANADA'S FREIGHTRAIL INDUSTRY MUNICIPALITIES AND STATES COULD FACE BIG LOSSES ON INCINERATORS AND OTHER WASTE FACILITIES IN THE WAKE OF COURT RULINGS LIMITING GOVERNMENT CONTROL OVER WHERE TRASH IS DISPOSED BONDS LEHMAN BROTHERS TREASURY INDEX 502768 UP 3156 COMMODITIES OIL 2060 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12478 UP 007 SPOT INDEX 12425 OFF 077 DOLLAR 11874 YEN UP 049 16546 MARKS UP 00091 9303020047 930302 BUSINESS BRIEF PWA CORP COMPANY SENDS ITS CREDITORS REVISED RESTRUCTURING PLAN PWA CORP CALGARY ALBERTA PARENT OF CANADIAN AIRLINES INTERNATIONAL SAID IT SENT CREDITORS A REVISED RESTRUCTURING PLAN AND EXPECTS TO RESUME DEBT AND LEASE PAYMENTS ON APRIL 30 SUBJECT TO APPROVAL OF THE PLAN BY SENIOR CREDITORS PWA CEASED PAYMENTS TO NONTRADE CREDITORS AND AIRCRAFT LESSORS NOV 30 IT HAS BEEN NEGOTIATING TERMS OF A DEBT RESTRUCTURING BASED ON A DRAFT PLAN SENT TO CREDITORS IN DECEMBER AMONG OTHER CHANGES THE NEW PLAN PROPOSES THAT HOLDERS OF SUBORDINATED DEBT PREFERRED SHARES AND COMMON SHARES RECEIVE WARRANTS TO PURCHASE ADDITIONAL PWA COMMON SHARES THE AIRLINE COMPANY SAID THE CHANGE WOULD PROVIDE GREATER CAPITAL APPRECIATION POTENTIAL FOR THOSE PARTIES ONCE SENIOR CREDITORS RECOVER THE FULL FACE VALUE OF THEIR LOAN 9303020046 930302 LORAL TO REDEEM CERTAIN DEBT NEW YORK LORAL CORP SAID IT WILL REDEEM 50 MILLION OF ITS 105 SUBORDINATED DEBENTURES ON MARCH 31 BRINGING TO ABOUT 265 MILLION THE DEBT THAT WILL HAVE BEEN REDEEMED BY THE AEROSPACE CONCERN SINCE THE BEGINNING OF THE YEAR THE DEBENTURES WHICH WERE TO MATURE JUNE 1 2017 WILL BE REDEEMED FOR 107875 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IN JANUARY LORAL REDEEMED 110 MILLION AND REPURCHASED ON THE OPEN MARKET AN ADDITIONAL 5 MILLION OF THE 200 MILLION ISSUE THE NEW YORKBASED DEFENSE CONTRACTOR SAID IT PLANS TO REDEEM THE REMAINING 35 MILLION BUT DIDN'T SET A DATE THE COMPANY ALSO REDEEMED ON JAN 4 CONVERTIBLE DEBENTURES WITH A FACE VALUE OF 100 MILLION SEPARATELY LORAL SAID JULES FROHMANN 59 YEARS OLD PREVIOUSLY PRESIDENT OF THE LORAL CONTROL SYSTEMS DIVISION WAS NAMED PRESIDENT OF LORAL DEFENSE SYSTEMSAKRON DIVISION SUCCEEDING LEONARD LADEN 66 WHO IS RETIRING 9303020044 930302 MOST BUSINESSES AT WORLD TRADE CENTER TAKE BOMB BLAST'S DISRUPTION IN STRIDE BY NEIL BARSKY AND DAVE KANSAS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FRIDAY'S BOMB EXPLOSION BLASTED A HUGE CRATER UNDERNEATH THE WORLD TRADE CENTER TOWERS BUT IT MADE A SURPRISINGLY SMALL DENT IN THE ABILITY OF MOST COMPANIES TO DO BUSINESS THE FAX MACHINE THE TELEPHONE THE COMPUTER TERMINAL AND AN ABUNDANCE OF NEARBY VACANT OFFICE SPACE HELPED TURN WHAT MIGHT HAVE BEEN A BUSINESS CALAMITY FOR THE HUNDREDS OF COMPANIES AFFECTED BY THE BLAST INTO THE COMMERCIAL EQUIVALENT OF A TRAFFIC JAM EVEN WITH THE DISRUPTIONS TO NORMAL BUSINESS LIFE WHAT MOST SURPRISED MANY EXECUTIVES WAS HOW EASY IT WAS TO REPLICATE THEIR OFFICES AND CONTINUE FUNCTIONING SMALL RETAILERS IN THE AREA WHICH DEPEND ON THE TRADE CENTER FOR BUSINESS FARED LESS WELL HOWEVER I CAME IN AT SEVEN IN THE MORNING AND I THOUGHT WE DIDN'T HAVE A PRAYER SAYS MIKE NOTO AN ASSISTANT VICE PRESIDENT OF BOND SALES AT YAMAICHI INTERNATIONAL WHICH MOVED ITS SALES OPERATION TO AN OFFICE IN NEARBY JERSEY CITY BUT OUR DAY IT TURNS OUT HAS GONE PRETTY SMOOTHLY INSURERS SAY IT IS CURRENTLY IMPOSSIBLE TO ESTIMATE THE DOLLAR COST OF FRIDAY'S EXPLOSION MUCH DEPENDS ON HOW LONG IT TAKES THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TO RESTORE TO THE TWIN TOWERS THE HEATING AIR CONDITIONING FIRE AND SMOKE ALARM VENTILATION AND COMMUNICATIONS SYSTEMS KNOCKED OUT BY THE BLAST PORT AUTHORITY OFFICIALS SAID IT WILL TAKE AT LEAST A WEEK TO REOPEN THE TOWERS BUT CAUTIONED YESTERDAY THAT IT MAY TAKE AS LONG AS A MONTH PORT AUTHORITY ENGINEERS DROPPED STEEL BEAMS INTO THE CRATER YESTERDAY AND WERE EXPECTED TO BEGIN BRACING THE AREA UNDER THE CLOSED VISTA HOTEL BY THE EVENING BUT WHILE THE PRICE WILL CERTAINLY REACH INTO THE TENS OR HUNDREDS OF MILLIONS THERE WAS GROWING EVIDENCE THAT EVEN WITH NUMEROUS SNAGS THE DISRUPTIONS COULD BE LESS THAN ORIGINALLY FEARED THE PATH COMMUTER TRAIN SYSTEM JUST ONE FLOOR ABOVE THE GARAGE WHERE THE BOMB EXPLODED WAS STREWN WITH RUBBLE FRIDAY BUT WAS BACK IN SERVICE YESTERDAY THE WORLD TRADE DENTAL GROUP WHICH HAD BEEN PLANNING TO MOVE PATIENTS TO OTHER OFFICES MANAGED TO OPEN AS WELL IT'S AN EXAMPLE OF NEW YORK GOING AHEAD AND DOING WHAT HAS TO BE DONE TO SURVIVE SAID STEVEN SPINOLA PRESIDENT OF THE REAL ESTATE BOARD OF NEW YORK NO ONE CAN BELIEVE HOW WELL THE PORT AND THE BUSINESS COMMUNITY IS COPING AMERICAN EXPRESS CO'S SHEARSON LEHMAN HUTTON UNIT SIMPLY MOVED ITS 100 EMPLOYEES FROM ITS ASSET MANAGEMENT GROUP ACROSS THE STREET TO OTHER SHEARSON OFFICES FUJI BANK ALREADY HAD A BACKUP PLAN TO MOVE ITS OFFICES TO NORTH BERGEN NJ BY SATURDAY DEAN WITTER DISCOVER ALREADY HAD PLANS IN PLACE TO MOVE ITS ALMOST 5000 EMPLOYEES TO ALTERNATE OFFICES THE CITY'S FIVE COMMODITY EXCHANGES ALSO MANAGED TO OPEN ALBEIT WITH A SHORTENED TRADING SESSION CANTOR FITZGERALD SECURITIES CORP A UNIT OF CANTOR FITZGERALD INC AN INTERDEALER BROKER WAS HIT A BIT HARDER AND DIDN'T DO MUCH BUSINESS THINGS HAVE BEEN RUNNING A LITTLE LESS SMOOTHLY FOR THE DOZENS OF MARITIME INDUSTRY FIRMS FORCED TO RELOCATE FROM THE TWIN TOWERS BUT BUSINESS HASN'T GROUND TO A HALT FOR THEM EITHER CHILEAN LINE INC AN EXPORTIMPORT SHIPPING BUSINESS FOR EXAMPLE RENTED A FEW ROOMS FROM A LAW FIRM AT 14 WALL STREET MOVED SOME OF ITS STAFF TO ROOMS IN THE DOWNTOWN ATHLETIC CLUB A FEW BLOCKS SOUTH OF THE WORLD TRADE CENTER AND THE REMAINING STAFF WAS SENT TO A PHILADELPHIA BRANCH OFFICE WE HAD THE TELEPHONE COMPANY FORWARD CALLS TO OUR NEW OFFICES AND WE ARE HANDLING AS MUCH BUSINESS AS WE CAN FROM HERE SAID AL CARLO THE COMPANY'S DIRECTOR OF DATA PROCESSING WE'RE NOT TOTALLY UP AND RUNNING BUT WE ARE MAKING DO WITH THE ESSENTIAL THINGS WE NEED TO DO THE AMERICAN BUREAU OF SHIPPING FORWARDED ITS CALLS TO A HOUSTON BRANCH OFFICE BRINGING IN AN EXTRA TELEPHONE PERSON TO HANDLE THE CALLS THE TRADE ORGANIZATION SAID ITS NEW YORK EMPLOYEES WERE WORKING MOSTLY FROM HOME AND THE SHIPPING BUREAU WAS FORWARDING CALLS TO THEM EVEN LABORINTENSIVE INDUSTRIES SUCH AS LAW FIRMS MANAGED TO QUICKLY SET UP SHOP OUTSIDE THE CENTER BROWN & WOOD A 500PERSON CORPORATE AND REAL ESTATE FIRM WAS ABLE TO TAKE ADVANTAGE OF ITS BUSINESS RELATIONSHIPS TO BE FULLY OPERATIONAL BY THE END OF YESTERDAY THERE'S BEEN SOME SCRAMBLING BUT WE'RE GETTING BUSINESS DONE SAID PARTNER MICHAEL BRADLEY SITTING IN OFFICES VACATED LAST WEEK BY MERRILL LYNCH & CO THE FIRM IS USING MERRILL'S OFFICE FURNITURE AT WORST WE'LL MISS ONE DAY OF PHONE CALLS HE ADDED 9303020043 930302 BUSINESS BRIEF FILENE'S BASEMENT CORP RETAILER INDICATES IT HAD RISE IN YEAR'S OPERATING PROFIT FILENE'S BASEMENT CORP SAID THAT IT EXPECTS TO REPORT EARNINGS BEFORE EXTRAORDINARY ITEMS FOR ITS LATEST FISCAL YEAR WHICH ENDED JAN 31 IN LINE WITH ANALYSTS' ESTIMATES OF 87 CENTS A SHARE COMPARED WITH 81 CENTS A SHARE A YEAR AGO THE WELLESLEY MASS RETAILER ALSO PREDICTED THAT 1993 SALES WOULD RISE BY 100 MILLION OR 18 AND THAT EARNINGS THIS YEAR MAY BE SUBSTANTIALLY BETTER THAN IN 1992 AT A MEETING WITH ANALYSTS THE COMPANY SAID IT WILL REPORT 1992 TOTAL SALES UP 14 WITH COMPARABLESTORE SALES UP SLIGHTLY BUT EXECUTIVES CAUTIONED THAT THE COMPANY WOULD REPORT SALES FOR FEBRUARY WELL BELOW EXPECTATIONS AS A RESULT OF UNFAVORABLE WEATHER AND LOWER LEVELS OF SPRING INVENTORIES COMPARED WITH LAST YEAR 9303020042 930302 ADAPTEC BUYS TRANTOR SYSTEMS MILPITAS CALIF ADAPTEC INC SAID IT ACQUIRED TRANTOR SYSTEMS LTD A PRIVATELY HELD COMPUTER CONCERN FOR SHARES VALUED AT ABOUT 10 MILLION ADAPTEC A MAKER OF ADDIN HARDWARE AND SOFTWARE FOR PERSONAL COMPUTERS SAID IT ISSUED ABOUT 400000 SHARES IN EXCHANGE FOR ALL STOCK OUTSTANDING OF TRANTOR FREMONT CALIF ADAPTEC ROSE 125 CENTS TO 25375 IN NATIONAL OVERTHECOUNTER TRADING 9303020041 930302 ECONOMY BENTSEN SAYS PLAN TO STIMULATE ECONOMY STILL STANDS DESPITE 4THPERIOD STRENGTH BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THAT DESPITE THE SURPRISING STRENGTH OF THE ECONOMY IN THE FOURTH QUARTER THE ADMINISTRATION ISN'T BACKING AWAY FROM ITS PLAN TO STIMULATE THE ECONOMY WITH 30 BILLION OF SPENDING INCREASES AND TAX CUTS WE STILL HAVE THE SAME PROBLEM NOT HAVING THE JOB GROWTH MR BENTSEN TOLD A SMALL GROUP OF REPORTERS IF WE SAW GREAT JOB GROWTH OBVIOUSLY WE'D HAVE TO TAKE ANOTHER LOOK AT IT HE ADDED THE COMMERCE DEPARTMENT SAID LAST WEEK THAT THE ECONOMY GREW AT AN ANNUAL RATE OF 48 IN THE FOURTH QUARTER A FULL PERCENTAGE POINT ABOVE THE DEPARTMENT'S INITIAL ESTIMATE THAT REPORT HAS ADDED FUEL TO THE ARGUMENT THAT THE ECONOMY DOESN'T NEED EVEN THE MODEST STIMULUS THAT PRESIDENT CLINTON IS SEEKING THE LABOR DEPARTMENT REPORTS FRIDAY ON THE JOB PICTURE IN FEBRUARY MR BENTSEN ALSO SAID THAT THE WHITE HOUSE NATIONAL ECONOMIC COUNCIL IS MULLING POSSIBLE ADDITIONAL SPENDING CUTS BUT HE REFUSED TO BE SPECIFIC BUDGET DIRECTOR LEON PANETTA SAID OVER THE WEEKEND THAT THE PRESIDENT'S BUDGET NOW EXPECTED APRIL 5 WON'T INCLUDE CUTS BEYOND THOSE ALREADY SPELLED OUT HOUSE BUDGET CHAIRMAN MARTIN SABO HOPING TO FIND AT LEAST TOKEN ADDITIONAL CUTS TO SATISFY MODERATE AND CONSERVATIVE DEMOCRATS INTENDS TO BRING THE BUDGET RESOLUTION TO A VOTE IN HIS COMMITTEE MARCH 10 THAT WAY IT COULD BE CONSIDERED ON THE HOUSE FLOOR A WEEK LATER MR PANETTA SAID YESTERDAY THAT THE ADMINISTRATION HOPES THE STIMULUS PACKAGE WILL PASS THE HOUSE ALMOST IMMEDIATELY AFTER THE BUDGET RESOLUTION IN THE SENATE BUDGET CHAIRMAN JAMES SASSER D TENN FACING SIMILAR PRESSURES BUT WITH A SLIMMER MARGIN FOR ERROR MAY SCHEDULE A BUDGET MARKUP AS EARLY AS MARCH 9 REP CHARLES STENHOLM D TEXAS IS CIRCULATING A SHORT LIST OF BUDGET CUTS TOTALING 46 BILLION OVER FIVE YEARS IN A MEMO TO CONSERVATIVE DEMOCRATS MR STENHOLM PROPOSED TO TRIM MASS TRANSIT SUBSIDIES ELIMINATE FEDERAL SPENDING FOR THE ARTS AND HUMANITIES AND CHARGE UPPERINCOME ELDERLY PEOPLE MORE FOR MEDICARE HEALTH INSURANCE AMONG OTHER THINGS HOUSE DEMOCRATIC LEADERS AREN'T LIKELY TO EMBRACE HIS LIST BUT ARE SEEKING WAYS TO DEMONSTRATE THAT CONGRESS IS WILLING TO MAKE SPENDING CUTS BEYOND THOSE PROPOSED BY MR CLINTON REPUBLICANS ON THE HOUSE BUDGET COMMITTEE MEANWHILE PLAN TOMORROW TO PRESENT THE PARTY LEADERSHIP WITH PROPOSALS FOR A GOP BUDGET ALTERNATIVE REP JOHN KASICH R OHIO RANKING REPUBLICAN ON THE PANEL IS DRAWING A PLAN THAT ATTEMPTS ROUGHLY TO MATCH THE ADMINISTRATION'S DEFICIT REDUCTION LEVEL WITHOUT TAX INCREASES HIS PLAN IS EXPECTED TO PROPOSE HEALTHCARE SAVINGS BY REQUIRING MEDICAID BENEFICIARIES TO ENTER MANAGEDCARE PROGRAMS OTHER POSSIBLE TARGETS INCLUDE THE SPACE STATION AND SUPERCONDUCTING SUPERCOLLIDER WHICH THE WHITE HOUSE SPARED IN HIS MEETING WITH REPORTERS MR BENTSEN SAID THAT THE TREASURY AND BANK REGULATORS HAVE PRETTY WELL FORMULATED THE ADMINISTRATION'S STRATEGY FOR ATTACKING THE CREDIT CRUNCH HE SAID HE EXPECTS THE PRESIDENT TO UNVEIL IT SOON THE PLAN DOESN'T REQUIRE CONGRESSIONAL ACTION AND MR BENTSEN SAID IT WILL BE IMPLEMENTED PRETTY FAST WHAT WE'VE DONE IS WORK TO SEE THAT WE CONTINUE TO BUTTRESS THE SECURITY OF THOSE FINANCIAL INSTITUTIONS BUT AT THE SAME TIME GET MORE REALISTIC ON LOANS AND CUT BACK AS MUCH RED TAPE AS WE CAN THE SECRETARY SAID THE PRIMARY GOAL HE SAID IS TO ENCOURAGE LOANS TO SMALL AND MEDIUMSIZED BUSINESSES THE INITIATIVE IS EXPECTED TO FOCUS ON LOANS OF 250000 OR LESS BUT SOME OF THE MEASURES WILL EXTEND BEYOND SMALL BUSINESS LENDING THE PACKAGE FOR INSTANCE IS LIKELY TO EASE A RULE THAT OFTEN REQUIRES BANKS TO GET AN APPRAISAL OF REAL ESTATE PUT UP AS COLLATERAL FOR SMALL BUSINESS LOANS IN ADDITION REGULATORS SAY THEY ARE REVIEWING A RANGE OF APPRAISAL RULES TO HELP SPEED SOME REALESTATE TRANSACTIONS TREASURY OFFICIALS ALSO HAVE TOLD BANKERS THAT THEY PLAN TO STEP UP ENFORCEMENT OF FAIR LENDING RULES TO MAKE SURE THAT MINORITY INNERCITY AND RURAL BORROWERS BENEFIT FROM ANY INCREASE IN CREDIT MR BENTSEN SAID HE ISN'T CERTAIN THAT THE TREASURY CAN SAVE 163 BILLION OVER THE NEXT FIVE YEARS BY SHIFTING ITS BORROWING TOWARDS SHORTER MATURITIES AS THE CLINTON BUDGET SAID I THINK WE CAN DO SOME SHIFT THE QUESTION IS HOW MUCH HE SAID I DON'T PROPOSE ANY DRAMATIC RADICAL SHIFT THERE THE MATTER IS STILL UNDER STUDY AT THE TREASURY IF THE SAVINGS ESTIMATE IS TOO HIGH THE BUDGET WILL BE ADJUSTED HE SAID IT'S MUCH TOO IMPORTANT A SUBJECT TO HAVE A POLITICAL SOLUTION THE TREASURY SECRETARY ALSO INDICATED THAT HE EXPECTS CONGRESS TO ENLARGE THE ADMINISTRATION'S PROPOSED CAPITALGAINS TAX BREAK FOR SMALL BUSINESS THE PROPOSAL IS SUBSTANTIALLY NARROWER THAN LEGISLATION ADVANCED BY ITS CHIEF CONGRESSIONAL ADVOCATE SEN DALE BUMPERS D ARK I'M SURE CONGRESS WILL MODERATE THAT ONE MR BENTSEN SAID 9303020040 930302 ROADWAY EXPECTS CAPITAL SPENDING TO LOWER EARNINGS BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL AKRON OHIO ROADWAY SERVICES INC'S STOCK FELL ALMOST 10 AFTER THE COMPANY SAID IT DOESN'T EXPECT ANY EARNINGS INCREASE THIS YEAR BECAUSE OF HIGHER CAPITAL SPENDING TRAINING AND SYSTEMS DEVELOPMENT COSTS IN COMPOSITE OTC TRADING YESTERDAY AFTERNOON ROADWAY'S STOCK WAS QUOTED AT 6325 DOWN 675 THE MOTOR FREIGHT CARRIER SAID IT MUST SPEND 290 MILLION FOR CAPITAL EXPENDITURES IN 1993 UP FROM 211 MILLION LAST YEAR PLANNED EXPENSES WILL MAKE IT DIFFICULT TO REPORT AN EARNINGS INCREASE THIS YEAR BEFORE ACCOUNTING CHANGES THE COMPANY SAID ANALYSTS HAD EXPECTED THE COMPANY TO EARN AROUND 168 MILLION OR 425 A SHARE IN 1993 COMPARED WITH 147 MILLION OR 373 A SHARE IN 1992 THIS IS A COMPANY PEOPLE HAD BEEN TREATING AS A GROWTH COMPANY SAID ANTHONY HATCH AN ANALYST AT PAINEWEBBER INC AN ANNOUNCEMENT LIKE THIS SHAKES UP SOME PEOPLE'S FAITH ABOUT ONGOING GROWTH HE SAID ALTHOUGH HE ADDED THAT THE COMPANY HAS TOLD ANALYSTS THAT THE INCREASED SPENDING IS A ONEYEAR PROCESS WHILE THE DISAPPOINTING EARNINGS ESTIMATE SHOCKED WALL STREET SO DID THE HIGHER CAPITAL SPENDING PROJECTIONS A COMPANY SPOKESMAN SAID 100 MILLION WOULD GO FOR PURCHASE OF TRACTORS AND TRAILERS 65 MILLION FOR REAL ESTATE AND 125 MILLION FOR OTHER EQUIPMENT AND TRAINING INCLUDING NEW INFORMATION SYSTEMS AND FREIGHT HANDLING GEAR ROADWAY ALSO REPORTED YESTERDAY THAT IT PLANS TO TAKE A ONETIME NONCASH CHARGE IN THE FIRST QUARTER ENDING IN MARCH OF 18 MILLION OR 46 CENTS A SHARE TO ADOPT NEW ACCOUNTING RULES REQUIRING COMPANIES TO FULLY ACCRUE COSTS OF CHANGES IN INCOME TAXES AND HEALTH EXPENSES FOR RETIREES IN LAST YEAR'S FIRST QUARTER THE COMPANY EARNED 39 MILLION OR 78 CENTS A SHARE ON REVENUE OF 803 MILLION THE SPOKESMAN SAID THE RULE RELATING TO INCOME TAXES WILL RESULT IN A GAIN OF 6 MILLION OR 14 CENTS A SHARE WHILE HEALTH EXPENSES WILL RESULT IN A CHARGE OF 24 MILLION OR 60 CENTS A SHARE THE SPOKESMAN ESTIMATED THE CONTINUING ANNUAL AFTERTAX COST OF THE HEALTH EXPENSE RULE AT 29 MILLION OR SEVEN CENTS A SHARE 9303020039 930302 INTERNATIONAL BRIEF BERJAYA GROUP BHD FIRM SETS CHINA INVESTMENTS FOR BROAD RANGE OF PROJECTS BERJAYA GROUP BHD OF MALAYSIA SAID IT PLANS TO INVEST 100 MILLION IN CHINA FOR PROJECTS RANGING FROM LOTTERIES AND HORSERACE BETTING TO AMUSEMENT PARKS AND GOLF RESORTS MANY MALAYSIAN INVESTORS SAY THEY BELIEVE BERJAYA SOON WILL ANNOUNCE THAT IT HAS SECURED MANAGEMENT CONTROL OF A LOTTERY IN SOUTHERN CHINA'S GUANGDONG PROVINCE NEAR HONG KONG THE COMPANY YESTERDAY REQUESTED THAT ITS STOCK BE TEMPORARILY SUSPENDED FROM TRADING FUELING THE SPECULATION MALAYSIAN EXECUTIVES FAMILIAR WITH THE TERMS OF THE ARRANGEMENT SAID BERJAYA GROUP AND AN ASSOCIATE CONCERN FAR EAST ASSET BHD TOGETHER WILL RETAIN 100 OF THE EQUITY IN THE LOTTERY'S MANAGEMENT COMPANY 9303020038 930302 FRANCE'S ELF SEES MODEST PROFIT IN '93 DUE TO COST CUTTING BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOCIETE NATIONALE ELF AQUITAINE EXPECTS PROFIT TO RISE MODESTLY THIS YEAR DESPITE THE WEAKNESS IN OIL PRICES AND OTHER TOUGH INDUSTRY CONDITIONS THE CHAIRMAN OF THE FRENCH OIL COMPANY SAID HERE IT WILL BE ANOTHER YEAR VERY CLOSE TO LAST YEAR BUT WE WILL DO A LITTLE BETTER SAID LOIK LE FLOCHPRIGENT THE OFFICIAL SAID THE IMPROVEMENT WILL COME FROM FURTHER CUTTING OF INTERNAL COSTS AS WELL AS A REDUCTION OF 10 IN ELF'S CAPITAL SPENDING BUDGET THIS YEAR FROM 1992'S 29 BILLION FRENCH FRANCS 52 BILLION IN 1992 THE PARISBASED OIL COMPANY ONE OF THE WORLD'S 10 LARGEST HAD NET INCOME OF 62 BILLION FRANCS ON SALES OF 200 BILLION FRANCS ELF WHICH HAS RECEIVED A GREAT DEAL OF ATTENTION FOR AGGRESSIVELY SEEKING OILPRODUCTION OPPORTUNITIES IN THE FORMER SOVIET UNION BELIEVES IT HAS AN ADVANTAGE OVER USBASED OIL COMPANIES ALTHOUGH DRILLING WILL BEGIN BY THE END OF THIS YEAR IN KAZAKHSTAN THE REWARDS IN THAT REGION OF THE WORLD ARE A LONG WAY AWAY MR LE FLOCHPRIGENT SAID IF DRILLING GOES WELL HE EXPECTS ELF ULTIMATELY WILL SPEND 20 TO 30 OF ITS EXPLORATION BUDGET CURRENTLY AROUND 800 MILLION US IN THE FORMER SOVIET UNION BY THE END OF THE DECADE HE OPTIMISTICALLY PREDICTED ELF WILL PRODUCE 200000 BARRELS A DAY OF CRUDE FROM THAT REGION RAISING THE COMPANY'S TOTAL OUTPUT TO ONE MILLION BARRELS DAILY BUT PROGRESS HAS GENERALLY BEEN SLOW FOR ELF AND OTHER WESTERN OIL COMPANIES IN RUSSIA ELF SEEKS FURTHER ASSURANCES THAT ONCE OIL PRODUCTION BEGINS TAXES ON CRUDE WON'T BE RAISED WE HAVE TO FIND A GOOD FORMULA TO MAKE SURE THERE ARE NO NEW TAXES MR LE FLOCHPRIGENT SAID WE ARE CLOSE TO THE END BUT WE HAVE BEEN CLOSE TO THE END FOR SIX MONTHS MR LE FLOCHPRIGENT WAS IN WASHINGTON FOR AN OIL CONFERENCE JOINTLY SPONSORED BY PETROLEUM INTELLIGENCE WEEKLY AND PETROLEUM FINANCE CO 9303020037 930302 TRICKLEDOWN PAIN DEMISE OF THE CATALOG HURTS SMALL BUSINESSES THAT COUNTED ON SEARS IN CALIFORNIA A FEED STORE TAKES A HIT IN CHICAGO A PRINTING PLANT CLOSES IMPLICATIONS FOR THE RECOVERY BY JUDITH VALENTE AND CHRISTINA DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL YOU WOULDN'T THINK THE DEMISE OF THE SEARS CATALOG WOULD CONCERN SELENE WACKER A RECENT GRADUATE OF THE ART INSTITUTE OF CHICAGO AND FLEDGLING INTERIOR DECORATOR IT DOES MS WACKER 25 YEARS OLD WORKED FOR NUGENT WENCKUS INC A SMALL STUDIO IN DES PLAINES ILL THAT PHOTOGRAPHED HOME FURNISHINGS FOR THE SEARS ROEBUCK & CO CATALOG SHE HELPED ARRANGE SETS TO LOOK LIKE LIVING ROOMS BATHROOMS AND BEDROOMS THE SEARS WORK AMOUNTED TO 20 OF THE STUDIO'S ANNUAL REVENUE SOME 400000 A WEEK AFTER LOSING THAT ACCOUNT THE FIRM LAID OFF MS WACKER ANOTHER DECORATOR AND TWO PHOTOGRAPHERS 10 OF ITS WORK FORCE THAT STARTED A CHAIN REACTION KENNICOTT BROTHERS A FAMILYOWNED FLOWER WHOLESALER IN CHICAGO LOST 8000 IN BUSINESS THAT IS WHAT NUGENT WENCKUS PAID MOST YEARS FOR FRESHCUT FLOWERS TO DRESS UP CATALOG PHOTOGRAPHS HOOS DRUG & PHOTO CENTER IN EVANSTON ILL WON'T GET THE 10000 THAT NUGENT WENKUS USUALLY SPENT THERE EACH YEAR ON FILM FOR SEARS PICTURES AND DES PLAINES LUMBER WHICH SUPPLIED NUGENT WENCKUS CARPENTERS WITH WOOD TO BUILD SETS IS LOSING ITS 25000AYEAR ACCOUNT WHEN GIANTS LIKE SEARS GENERAL MOTORS CORP OR BOEING CO SLASH JOBS THE MOVE OFTEN SETS OFF RIPPLES THAT TOUCH COUNTLESS OTHER BUSINESSES AND THEIR EMPLOYEES SEARS FOR EXAMPLE IS LAYING OFF 50000 EMPLOYEES AND CLOSING ITS CATALOG BUSINESS AND 113 RETAIL STORES BY YEAR'S END BUT THE JOB TOLL WILL BE MUCH HIGHER BECAUSE OF THE MANY BUSINESSES THAT WORKED ON THE CATALOG OTHERS WITH ONLY TANGENTIAL TIES TO THE OPERATION WILL BE AFFECTED AS WELL THEY ARE THE HIDDEN VICTIMS OF CORPORATE COMPRESSION IF I DON'T FIND SOMETHING ELSE SOON THIS IS GOING TO BE A DISASTER SAYS MS WACKER WHO WORKED AT NUGENT WENCKUS ONLY FIVE MONTHS AND IS ELIGIBLE FOR JUST 50 IN WEEKLY UNEMPLOYMENT BENEFITS THIS TRICKLEDOWN EFFECT HAS IMPLICATIONS FOR THE RECOVERY CORPORATIONS THAT ARE SCALING BACK MAY WELL BE HEALTHIER IN THE LONG RUN BUT THEIR LAYOFFS AS WELL AS CHAINREACTION JOB LOSSES HAVE AN IMMEDIATE EFFECT ON INCOMES THAT TENDS TO IMPEDE GROWTH YOU HAVE A SITUATION WHERE X NUMBER OF PEOPLE ARE DRAWING UNEMPLOYMENT CHECKS INSTEAD OF SALARIES THIS IS A PROBLEM THIS KEEPS THE ECONOMY FROM GROWING AS FAST AS IT COULD SAYS KENNETH GOLDSTEIN OF THE CONFERENCE BOARD A BUSINESS RESEARCH GROUP IN NEW YORK ALTHOUGH THERE IS NO SURE WAY TO TELL HOW MANY ADDITIONAL BUSINESSES ARE LIKELY TO SUFFER IN THE WAKE OF CORPORATE CUTBACKS THERE'S NO DOUBT THERE IS A MULTIPLIER EFFECT SAYS PAUL FLAIM A LABOR DEPARTMENT OFFICIAL CERTAINLY NOT ALL THE BUSINESSES THAT WORKED FOR SEARS WILL HAVE TO LET EMPLOYEES GO BUT THE LOSS OF REVENUE STILL HURTS WE DON'T LIKE TO LOSE ANY CUSTOMER SAYS OWNER HARRISON KENNICOTT THE FLOWER WHOLESALER AT DES PLAINES LUMBER 25000 IS STILL 25000 REMARKS THOMAS SCHECK PRESIDENT SUN LEE WASN'T SO LUCKY MR LEE CAME TO THE US FROM HONG KONG 20 YEARS AGO HOPING TO OPEN HIS OWN STUDIO HE FOUND A NICHE PHOTOGRAPHING COLOR CLOTHING SWATCHES FOR THE CATALOG EIGHT YEARS AGO HE AND A PARTNER OPENED L&N STUDIOS IN CHICAGO SEARS PROVIDED 85 OF THE BUSINESS ABOUT 200000 IN ANNUAL REVENUE WITH LITTLE HOPE OF REPLACING THE SEARS BUSINESS MR LEE SAYS L&N PROBABLY WILL CLOSE NOW HE WORRIES ABOUT PAYING THE 14 YEARS LEFT ON HIS MORTGAGE AND PUTTING HIS THREE CHILDREN THROUGH COLLEGE HE HASN'T TOLD HIS SON YET THAT HE CAN'T VISIT DISNEY WORLD THIS YEAR MAYBE I'LL BE ABLE TO SEND HIM ON A SCHOOL TRIP TO WASHINGTON MR LEE SAYS MANY OF THE OUTSIDE WORKERS WHO HELPED PRODUCE THE CATALOG HAVE SPECIALIZED SKILLS THAT WON'T TRANSFER EASILY TO OTHER INDUSTRIES THAT WAS THE CASE FOR THE PRINTERS AT RR DONNELLEY & SONS CO IN CHICAGO TWO DAYS AFTER SEARS'S ANNOUNCEMENT THE LARGE PRINTING CONCERN DECIDED TO CLOSE THE CHICAGO PLANT THAT WORKED PRIMARILY ON SEARS CATALOGS LOST 800 JOBS MANY OF THE PRINTERS HAD NEVER WORKED ELSEWHERE AT BUSTER'S BAR AND GRILL THE COZY DINER WHERE PLANT WORKERS GATHERED AFTER THE ANNOUNCEMENT DONALD HOHMANN TOLD OF STARTING AT THE PLANT DONNELLEY'S OLDEST AND A CHICAGO LANDMARK RIGHT OUT OF HIGH SCHOOL MR HOHMANN NOW 33 MET HIS WIFE A SECRETARY AT THE PLANT THEIR FIRST DATE WAS A COMPANY CHRISTMAS PARTY THE HOHMANNS WHO HAVE TWO YOUNG SONS WILL LOSE A COMBINED INCOME OF 80000 MR HOHMANN MIGHT BE ABLE TO TRANSFER TO ANOTHER DONNELLEY PLANT BUT SAYS HE IS LIKELY TO EARN 3 TO 5 LESS AN HOUR IN SUCH A MOVE WE'VE GOT TO SORT OUT WHAT WE'RE GOING TO DO WITH OURSELVES MR HOHMANN SAYS IN LOS ANGELES MODEL KELLY ANDERSON SAYS SHE LOST 70 OF HER YEARLY INCOME SHE DECLINES TO SPECIFY THE AMOUNT WITH THE END OF HER WORK FOR THE CATALOG HER STYLIST CLAIRE RICH WHO MAKES ABOUT 450 A DAY IS OUT OF A JOB IN NEW YORK COMMERCIAL GRAPHICS INC THE PRODUCTION COMPANY THAT PHOTOGRAPHED MS ANDERSON WEARING YOUNG WOMEN'S APPAREL FOR THE CATALOG FIGURES IT WILL LOSE 1 MILLION A YEAR IN INCOME THAT IS BAD NEWS TOO FOR THE SMALL PHOTO PROCESSOR THAT STOOD TO EARN 16000 FOR HANDLING THE 800 ROLLS OF FILM COMMERCIAL GRAPHICS PLANNED TO USE ON ITS NEXT PHOTO SHOOT FOR SEARS AND WORSE NEWS FOR THE CITY OF BATON ROUGE WHERE HOTELS RESTAURANTS AND FOUR PLANTATIONS LOST ABOUT 200000 THE MONEY COMMERCIAL GRAPHICS PLANNED TO SPEND IN THE LOUISIANA CAPITAL IF THE SHOOT HADN'T BEEN CANCELED I'M DISAPPOINTED FOR OUR CITY AND OUR ECONOMY SAYS HENRI FOURRIER OF THE BATON ROUGE CONVENTION AND VISITORS BUREAU AND THOSE ARE PEOPLE WHO CAN RELATE THEIR LOSSES DIRECTLY TO THE SEARS DECISION ON THE OPPOSITE END OF THE COUNTRY HAL MARTIN OWNER OF AN ANIMALFEED STORE IN SUTTER CREEK CALIF POPULATION 2202 IS WORRIED ABOUT HIS BOTTOM LINE MR MARTIN'S STORE THE FEED BARN IS HIS ADS POINT OUT RIGHT BEHIND SEARS HE SAYS AT LEAST ONE IN FIVE OF HIS CUSTOMERS COMES BY AFTER ORDERING TOOLS AND OTHER SUPPLIES AT SEARS'S CATALOG STORE SPILLOVER BUSINESS ADDS ABOUT 200000 TO THE FEED BARN'S ANNUAL SALES MR MARTIN ESTIMATES THIS IS GOING TO HAVE A BIG IMPACT ON ME HE LAMENTS OTHER SUTTER CREEK SHOP OWNERS FEAR THE CATALOG STORE'S CLOSING WILL TURN THE AREA INTO A GHOST TOWN PEOPLE DON'T SHOP IN A DEPRESSED AREA SAYS SHIRLEY SCOTT WHO OWNS A FLOWER SHOP NEXT TO THE SEARS MS SCOTT SAYS RESIDENTS OF A NEARBY SENIOR CITIZENS' APARTMENT COMPLEX ARE MOST LIKELY TO SUFFER MOST OF THEM DON'T DRIVE ANYMORE AND THERE ISN'T BUS SERVICE TO SACRAMENTO 40 MILES AWAY THE NEAREST CITY WITH MAJOR RETAIL STORES IT'S TERRIBLE IF YOU CAN'T BUY A SHEET OR A TOWEL IN YOUR OWN TOWN MS SCOTT SAYS ANXIETY HANGS OVER DOZENS OF OTHER TOWNS WHERE SEARS STORES PROVIDED AN ANCHOR FOR LOCAL BUSINESSES IN GREENFIELD MASS POPULATION 19000 SEARS HAS STOOD ON MAIN STREET FOR 64 YEARS IN ONE OF THE FEW TRADITIONAL DOWNTOWNS LEFT IN NEW ENGLAND WITH COURTHOUSE AND TOWN SQUARE NORMAN THIDEMANN TOWN MANAGER FEARS THE SEARS CLOSING WILL STYMIE FUTURE COMMERCIAL DEVELOPMENT THE TOWN LOST ITS JC PENNEY STORE A YEAR AGO MR THIDEMANN FRETS THAT TOWNSFOLK WILL ABANDON DOWNTOWN STORES ALTOGETHER FOR THE WALMART UNDER CONSTRUCTION JUST INSIDE THE CITY LIMITS SOME OF THE BIGGER COMPANIES THAT DID SIGNIFICANT BUSINESS WITH SEARS ARE SCALING BACK THEIR GROWTH PLANS ALTERNATE POSTAL DELIVERY INC IN GRAND RAPIDS MICH DISTRIBUTED AS MANY AS 160000 SEARS BIG BOOK CATALOGS EACH YEAR IN 13 MIDWEST MARKETS THE FIRM HAD JUST SIGNED A CONTRACT TO ADD SIX MORE MARKETS DOUBLING THE NUMBER OF SEARS CATALOGS IT DELIVERS SEARS WAS ALTERNATE POSTAL'S SECONDLARGEST CATALOG CUSTOMER THE MOVE HALTS A PRETTY SUBSTANTIAL GROWTH PLAN FOR US AN ALTERNATE POSTAL EXECUTIVE SAYS THE US POSTAL SERVICE ITSELF FIGURES IT WILL LOSE 90 MILLION TO 100 MILLION IN YEARLY POSTAGE REVENUE FROM THE MAILING OF SEARS CATALOGS PERHAPS MOST DIRECTLY AFFECTED ARE THE PEOPLE ACROSS THE NATION WHO BOUGHT THE CATALOG STORES A FEW YEARS BACK WHEN SEARS SOLD THEM OFF AND AGREED TO SUPPLY THE CATALOGS PEOPLE LIKE JOYCE AND ROBERT CAUDLE WHO BOUGHT THE STORE IN FAIRFIELD ILL FOUR YEARS AGO MR CAUDLE 55 HAS WORKED AS A SEARS SALESMAN SINCE HE LEFT THE AIR FORCE IN 1963 FINDING A NEW JOB AT THIS STAGE OF LIFE IN A CORNGROWING TOWN OF 6000 HE SAYS WON'T BE EASY WHEN YOU GIVE ALL YOUR TIME TO ONE COMPANY YOU DON'T HAVE TIME TO DEVELOP OTHER SKILLS SAYS HIS WIFE JOYCE WHO ALSO WORKED IN THE STORE THE CAUDLES SAY THEY MIGHT HAVE TO DIP INTO EMERGENCY SAVINGS TO PAY THEIR HOME MORTGAGE THEY ARE RETHINKING PLANS FOR THEIR 17YEAROLD DAUGHTER'S EDUCATION DIANE A STRAIGHTA STUDENT WANTS TO ATTEND A LARGE UNIVERSITY HER MOTHER TOLD HER SHE MAY HAVE TO SETTLE FOR A SMALLER LESS EXPENSIVE COMMUTER COLLEGE WE THOUGHT THIS STORE WOULD BE OUR INVESTMENT AND OUR LIFE UNTIL WE RETIRED MRS CAUDLE SAYS NOW IT'S SCARY TO FACE THE FUTURE 9303020036 930302 ENTERPRISE WORLD TRADE CENTER BLAST LEAVES SOME SHOPS LONELY RETAILERS FEEL THE DOWNSIDE OF DEPENDING ON FOOT TRAFFIC OF ONE LOCATION BY UDAYAN GUPTA AND JEFFREY A TANNENBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LAST FRIDAY'S BOMB BLAST IN THE WORLD TRADE CENTER HAS FORCED SCORES OF COMPANIES TO SCRAMBLE TO RETURN TO BUSINESS AS USUAL BUT PROPORTIONATE TO SIZE FEW WILL HAVE A HARDER TIME THAN THE DOZENS OF SMALL RETAILERS WHO COUNTED ON THE BUILDING FOR THEIR CUSTOMERS BUSINESS IS NIL ALMOST SAID LEN VOLPE THE MANAGER OF STARR A CHILDREN'S APPAREL STORE IN THE COMPLEX'S SHOPPING CONCOURSE THOUGH MANY STORES WERE OPEN YESTERDAY AND FEW HAD SUSTAINED ANY DAMAGE THE 110STORY OFFICE TOWERS ARE CLOSED INDEFINITELY WHILE SOME BIG COMPANIES SHAKEN BY THE BLAST WERE ABLE TO RELOCATE THEIR OPERATIONS TO TEMPORARY QUARTERS MOST SMALL RETAILERS WERE HELPLESSLY STUCK WHERE THEY WERE SOME OF THE VICTIMS ARE TINY STANDALONE BUSINESSES OTHERS BELONG TO SMALL USUALLY LOCAL CHAINS IN EITHER CASE THEIR PLIGHT SHOWS THE VULNERABILITY OF SMALL RETAILERS THAT TIE THEIR FORTUNES TO A SINGLE SOURCE OF CUSTOMERS SUCH AS A SKYSCRAPER ALL ACROSS THE COUNTRY MANY RETAILERS DEPEND ON FOOT TRAFFIC FROM A PARTICULAR LOCATION AND SUCH TRAFFIC CAN DRY UP OVERNIGHT MIAMI SUBS A FASTFOOD FRANCHISE JUST ACROSS THE STREET FROM THE WORLD TRADE CENTER ON ITS SOUTHERN BORDER USUALLY SERVES BETWEEN 1200 AND 1300 MEALS EACH WORKDAY PLUS AN ADDITIONAL 100 TO 125 DELIVERED MOSTLY TO TRADE CENTER OFFICES BUT ON FRIDAY THE DAY OF THE EXPLOSION MIAMI SUBS SERVED FEWER THAN 500 AND YESTERDAY GENERAL MANAGER PEDRO QUINTERO SAID IF I'M LUCKY I'LL GET 25 OF REGULAR VOLUME HE ADDED I'M SURPRISED AT HOW BAD THE IMPACT HAS BEEN MANY SUCH COMPANIES SAID THEY HAD NO INSURANCE TO COVER BUSINESS DISRUPTIONS OF THIS SORT FINANCIALLY THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY QUICKLY MOVED TO MAKE 5 MILLION IN EMERGENCY AID AVAILABLE IN THE FORM OF 50000 LOANS TO COMPANIES WITH 100 OR FEWER EMPLOYEES AS MANY AS 270 BUSINESSES MIGHT QUALIFY FOR SUCH LOANS SAID OFFICIALS OF THE AGENCY WHICH OWNS THE TRADE CENTER THEY PROMISED TO RAISE MORE THAN THE 5 MILLION IF NECESSARY AT THE REQUEST OF NEW YORK GOV MARIO CUOMO THE FEDERAL SMALL BUSINESS ADMINISTRATION SAID IT WILL OFFER SOCALLED ECONOMICINJURY DISASTER LOANS TO SMALL BUSINESSES HURT BY THE BLAST SUCH LOANS ARE DESIGNED TO PROVIDE NECESSARY WORKING CAPITAL UNTIL RESUMPTION OF NORMAL OPERATIONS AFTER A PHYSICAL DISASTER FOR CUSTOMERS STARR AND MANY OTHER BUSINESSES DRAW FROM THE ESTIMATED 145000 PEOPLE A DAY WHO ORDINARILY GO TO WORK AT THE TRADE CENTER OR PASS THROUGH IT AS COMMUTERS OR TOURISTS IN ORDINARY TIMES THE DEPENDENCY ENSURES A RUSH OF BUSINESS FOR MANY A TRADE CENTER LOCATION IS A BUILTIN TRAFFIC GETTER MR VOLPE SAID YOU DON'T HAVE TO ADVERTISE DESPITE THAT ADVANTAGE THE TRADE CENTER HAS HAD ITS SHARE OF PROBLEMS IT WAS EMBROILED IN A LABOR DISPUTE WITH RESTAURANT WORKERS LAST YEAR IT IS MUCH OLDER AND IS CONSIDERED LESS UPSCALE THAN THE WORLD FINANCIAL CENTER SHOPPING AREA ACROSS THE STREET AND ITS BIGGEST RETAIL TENANT AN ALEXANDER'S DEPARTMENT STORE CLOSED NOT LONG AGO WHEN THE PARENT COMPANY FAILED BUT SUDDENLY ALL OF THAT PALES NEXT TO THE EXPLOSION WHICH FORCED THE EVACUATION OF THE COMPLEX CONCOURSE STORES LOST THEIR FRIDAY AFTERNOON AND SATURDAY BUSINESS AND MANY CHOSE NOT TO REOPEN YESTERDAY WHILE THE OFFICE TOWERS WERE STILL CLOSED MEANWHILE FOR BUSINESSES THAT DID REOPEN INSIDE THE TRADE CENTER AS WELL AS FOR OTHERS ALONG ITS BORDER BUSINESS FELL OFF DRASTICALLY AT A KELLY FILM DIRECT PHOTOPROCESSING OUTLET MANAGER JERRY MIELES SAID TRAFFIC WAS OFF MORE THAN 50 BECAUSE OF THE ABSENCE OF THE TWIN TOWERS' OFFICE WORKERS OTHERS SAID TOURIST TRAFFIC ALSO FELL AT BODY OPTIONS A SHOP SELLING EXERCISE OUTFITS AND OTHER APPAREL SALES EMPLOYEE MARIA BELLIA SAID BUSINESS IS WEAK AND I DON'T THINK IT'S GOING TO GET BETTER TODAY IT'S STILL A BEAUTIFUL PLACE IN HERE BUT ALL THE NEWS COVERAGE IS SCARING PEOPLE AWAY FOR PERFUMERIA MILANO A THREEMONTHOLD FRAGRANCE RETAILER THE EXPLOSION MEANT STARTING ALL OVER AGAIN SAID MANAGER HILDA SENCON THE STORE WAS WINDING UP AN EXTREMELY SUCCESSFUL WEEK WHEN THE EXPLOSION CAUSED IT TO SHUT DOWN YESTERDAY MORNING THERE WERE NO CUSTOMERS EVEN THOUGH STORES ON THE EAST SIDE OF THE COMPLEX ARE OPEN MS SENCON WASN'T EXPECTING BUSINESS TO TURN UP SOON AND SHE HAD NO WAY OF RECOUPING HER LOSSES THE BUSINESS CARRIES SOME INSURANCE AGAINST DAMAGE BUT NONE TO PROTECT ITSELF AGAINST LOSS OF BUSINESS SHE SAID SHE IS GOING TO TRY TO ADVERTISE MORE AGGRESSIVELY OUTSIDE THE COMPLEX AND HOPE THAT SOME NEW CUSTOMERS WILL MATERIALIZE BECAUSE OF THE BLAST DELIVERIES WERE A PROBLEM FOR ONE OF THE EASTERN LOBBY SHOPS WHICH SELLS NEWSPAPERS MAGAZINES AND A VARIETY OF OTHER PRODUCTS YESTERDAY MORNING THE SHOP HADN'T RECEIVED ITS SUPPLY OF THE NEW YORK TIMES AND THE WALL STREET JOURNAL SAID MANAGER UPENDRA PANCHA THERE HAS BEEN A SLIGHT REDUCTION IN THE NUMBER OF CUSTOMERS AS MUCH AS 10 HE SAID BUT WITHOUT THE USUAL NEWSPAPERS SALES WERE OFF EVEN MORE HE ADDED SOME TRADE CENTER BUSINESSES GAMELY HOPED FOR THE BEST TOURISTS MIGHT COME HERE JUST TO SEE WHERE THE BOMB WASWE MIGHT REACH OUR SALES GOAL ANYWAY SAID MARTINE BELLEVUE A CUSTOMERSERVICE REPRESENTATIVE AT ACCESSORY PLACE YESTERDAY MORNING THOUGH BUSINESS WAS SLOWER THAN USUAL FOR THE ACCESSORIES STORE OWNED BY A LEONIA NJ COMPANY OTHERS HOWEVER APPEARED RESIGNED TO WHAT THEY SAW AS AN INEVITABLE DROP IN SALES THAT THEY COULD DO NOTHING ABOUT FOR ONE THING NOBODY KNOWS HOW MANY CUSTOMERS HAVE BEEN SCARED OFF BY THE BLAST OR HOW LONG THEY MIGHT STAY AWAY WE HAVE TO WAIT AND SEE THAT'S ALL SAID PETER TSEKENIS OWNER OF TRADE CENTER LEATHER & SHOE REPAIR JUST OUTSIDE THE TRADE CENTER WHERE BUSINESS WAS OFF 50 FROM NORMAL WHAT ELSE CAN WE DO 9303020035 930302 CONNECTICUT BUSINESSES' OUTLOOK STAMFORD CONN CONNECTICUT MIDSIZE BUSINESSES ARE SKEPTICAL ABOUT THE ECONOMY AND BELIEVE THE STAGNANT LOCAL ECONOMY WILL NOT CHANGE FOR SOME TIME ACCORDING TO A SURVEY BY CHEMICAL CONNECTICUT CORP THE SURVEY BY THE BANKING COMPANY FOUND 54 OF THE MORE THAN 200 BUSINESSES SURVEYED HAD SEEN NO ECONOMIC IMPROVEMENT IN THE LAST FEW MONTHS AND 55 SAID THEY EXPECT THE SITUATION IN THE NORTHEAST TO REMAIN THE SAME IN THE NEAR FUTURE ONLY A QUARTER OF THE RESPONDENTS BELIEVE THE LOCAL ECONOMY WILL IMPROVE THE RECESSION LED 37 OF THE BUSINESSES TO TRIM THEIR WORK FORCES ACCORDING TO THE SURVEY BY THE UNIT OF CHEMICAL BANKING CORP YET DESPITE THEIR SKEPTICISM ABOUT THE ECONOMY 97 OF THE COMPANIES EXPECT TO SURVIVE THE RECESSION THE STUDY SHOWED THE CREDIT CRUNCH AFFECTING MIDSIZED COMPANIES WAS SOMEWHAT EXAGGERATED CHEMICAL SAID ABOUT 70 OF THE COMPANIES SAID CREDIT WAS AVAILABLE AT THE SAME OR BETTER LEVELS AS THE YEAR EARLIER THE SURVEY OF COMPANIES WITH ANNUAL SALES OF 10 MILLION TO 500 MILLION WAS CONDUCTED BY SCHULMAN RONCA & BUCUVALES INC AN INDEPENDENT MARKET RESEARCH FIRM 9303020034 930302 BUSINESS BRIEF LEVI STRAUSS ASSOCIATES INC NET INCOME INCREASED 27 IN FISCAL FOURTH QUARTER LEVI STRAUSS ASSOCIATES INC CITING STRONG CONSUMER DEMAND FOR ITS JEANS AND CASUAL WEAR SAID FISCAL FOURTHQUARTER NET INCOME ROSE 27 THE PRIVATELY OWNED PARENT OF LEVI STRAUSS & CO SAID NET INCOME IN THE QUARTER ENDED NOV 29 WAS 1343 MILLION UP FROM 1055 MILLION IN THE YEARAGO QUARTER SALES ROSE 15 TO 156 BILLION FROM 136 BILLION IN THE YEAREARLIER PERIOD THE SAN FRANCISCO COMPANY SAID THAT FOURTHQUARTER OPERATING PROFIT ROSE TO 229 MILLION FROM 2084 MILLION IN THE 1991 FOURTH QUARTER FOR THE YEAR LEVI REPORTED NET INCOME OF 3608 MILLION COMPARED WITH 3567 MILLION IN 1991 NET INCOME FOR 1992 WOULD HAVE BEEN ABOUT 4758 MILLION OR A 33 INCREASE OVER 1991 IF NOT FOR THE IMPACT OF A 158 MILLION PRETAX STOCKOPTION CHARGE IN THE 1992 THIRD QUARTER LEVI REPORTED RECORD 1992 SALES OF 56 BILLION COMPARED WITH 49 BILLION IN 1991 US SALES IN THE YEAR GREW 16 TO A RECORD 35 BILLION LEVI SAID AND DOLLAR SALES OUTSIDE THE US WERE 21 BILLION OR 10 ABOVE 1991 SALES LEVI SAID IT POSTED RECORD SALES IN THE EUROPEAN AND ASIA PACIFIC DIVISIONS 9303020033 930302 BUSINESS BRIEF ETHYL CORP FIRM SAYS SPINOFF OF UNIT TO BE TREATED AS TAXFREE ETHYL CORP SAID THE INTERNAL REVENUE SERVICE WILL TREAT ITS PROPOSED SPINOFF OF INSURANCE SUBSIDIARY FIRST COLONY CORP AS A TAXFREE TRANSACTION ETHYL RICHMOND VA SAID ITS BOARD WILL ADDRESS THE SPINOFF OF FIRST COLONY WITH HOLDERS IN THE SPRING LAST FALL ETHYL SAID IT WOULD SELL 20 OF THE UNIT IN AN INITIAL PUBLIC OFFERING AND WOULD LATER SPIN OFF TO HOLDERS THE REMAINING 80 STAKE THE PUBLIC OFFERING OF 86 MILLION SHARES COMPLETED IN DECEMBER WAS FOR 28 A SHARE OR A TOTAL OF ABOUT 240 MILLION IN ITS PROSPECTUS LAST FALL FOR THE SALE OF THE 20 STAKE THE CHEMICAL CONCERN INDICATED THAT THE SPINOFF COULD TAKE PLACE AS EARLY AS JUNE THE COMPANY HAD SAID PREVIOUSLY THAT IT NEEDED IRS APPROVAL OF TAXFREE STATUS FOR THE SPINOFF IN ORDER TO COMPLETE THE TRANSACTION 9303020032 930302 EEOC GETS SETTLEMENT FROM MCDONNELL IN CRACKDOWN ON AGEBASED LAYOFFS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WARNED EMPLOYERS THAT IT WILL BE COSTLY TO SINGLE OUT OLDER WORKERS IN LAYOFFS IN A SETTLEMENT WITH MCDONNELL DOUGLAS CORP THE AGENCY IS EXTRACTING 201 MILLION TO RESOLVE CHARGES THAT THE AEROSPACE COMPANY DISCRIMINATED AGAINST OLDER WORKERS WHEN IT LAID OFF ABOUT A QUARTER OF ITS ST LOUISAREA EMPLOYEES MCDONNELL SAID IT AGREED TO THE SETTLEMENT IN THE CASE THE SECONDLARGEST AGE DISCRIMINATION CASE EVER BROUGHT BY THE EEOC TO RESOLVE THIS MATTER AND AVOID COSTLY AND TIMECONSUMING LITIGATION THE COMPANY SAID IT DOESN'T BELIEVE THAT IT HAS DISCRIMINATED AGAINST THESE INDIVIDUALS A FEDERAL JUDGE IN ST LOUIS MUST APPROVE THE ACCORD MCDONNELL HAS BEEN TRYING TO SETTLE THE CASE FOR SEVERAL MONTHS THE EEOC ARGUED THAT THE CASE WAS DESIGNED TO FORCE RETRENCHING COMPANIES TO THINK ABOUT THE TARGETS OF LAYOFFS THE IMPORTANT THING IN THESE CASES IS NOT TO LET AGE BE A FACTOR IN THE CONSIDERATION OF WHO GETS LAID OFF SAID GRETCHEN HUSTON THE AGENCY'S REGIONAL ATTORNEY IN ST LOUIS THAT MESSAGE DIDN'T GET PAST LABOR LAWYERS WHO ALREADY HAVE BEEN ENCOURAGING CLIENTS TO CAREFULLY DOCUMENT THE CRITERIA FOR WHO IS SELECTED FOR LAYOFFS THIS IS A VERY SIGNIFICANT AMOUNT OF MONEY FOR A SETTLEMENT SAID VICTOR SCHACHTER A SAN FRANCISCO EMPLOYMENT LAWYER REPRESENTING MANAGEMENT IT SHOULD SEND A VERY SOBER WARNING TO THE CORPORATE COMMUNITY FOR THE NEED TO DOCUMENT THE JUSTIFICATION FOR LAYOFFS THE EEOC OBVIOUSLY FOUND MCDONNELL'S PRACTICES TO BE LESS THAN WELLDOCUMENTED WHILE EEOC OFFICIALS WON'T COMMENT ON EARLIER DOCUMENTS THE AGENCY CONTENDED IN JANUARY THAT MCDONNELL WAS STILL HIRING COLLEGE GRADUATES AT THE TIME OF ITS LAYOFFS IN CASES LIKE THESE IF IT CAN BE INFERRED THAT THE BASIS FOR THE LAYOFF DECISION IS AGE A FLASHING LIGHT GOES OFF TO EQUAL EMPLOYMENT OPPORTUNITY AGENCIES FOR POTENTIAL AGE DISCRIMINATION CLAIMS ARGUED MR SCHACHTER THAT LEADS COMPANIES WITHOUT WELLDOCUMENTED EXPLANATIONS FOR HOW THEY CARRIED OUT THE LAYOFFS TO SETTLE THE CASES AND AVOID LITIGATION HE SAID THE CASE IS JUST ONE OF THE PROBLEMS THAT MCDONNELL IS FACING IN WASHINGTON THIS MORNING TWO SENATE COMMITTEES WILL HOLD A JOINT HEARING INTO MCDONNELL'S DECISION TO TERMINATE THE HEALTH CARE BENEFITS OF 20000 NONUNION RETIREES A HOUSE COMMITTEE WILL HOLD A SIMILAR HEARING TOMORROW THE EEOC COMPLAINT STEMS FROM TWO HUGE LAYOFFS THAT REDUCED MCDONNELL'S ST LOUISAREA WORK FORCE BY ABOUT 25 IN 1990 AND 1991 OF THE ROUGHLY 10000 EMPLOYEES CUT OR FORCED TO RETIRE BY THE COMPANY ABOUT 900 WERE AT LEAST 55 YEARS OLD AND NONUNION EMPLOYEES MANY OF THEM COMPLAINED TO THE EEOC THAT THE AEROSPACE COMPANY AND DEFENSE CONTRACTOR HAD SELECTED THEM BASED ON AGE THE EEOC AGREED THAT THE LAYOFFS WERE SKEWED TOWARD SUCH WORKERS ACCORDING TO A DOCUMENT FILED IN FEDERAL COURT THE COMPANY SHOULD HAVE CUT 370 FEWER WORKERS FROM THAT 55OROLDER GROUP IN THE SETTLEMENT THE ROUGHLY 900 WORKERS WILL DIVIDE 10 MILLION AND HAVE AN ADDITIONAL 101 MILLION ADDED TO THEIR PENSIONS ON A SCALE RELATED TO THEIR AGES AND EXPERIENCE IN ADDITION MCDONNELL HAS AGREED TO REHIRE 200 OF THE WORKERS FOR FOUR YEARS IN ITS TECHNICAL SERVICE SUBSIDIARY THOSE JOBS MUST BE IN THE ST LOUIS AREA AND MUST BE FILLED WITHIN 18 MONTHS THE EEOC SAID MOREOVER ABOUT 45 FORMER EMPLOYEES WHO FILED PRIVATE LAWSUITS AGAINST THE COMPANY ARE BEING OFFERED 20000 EACH TO WITHDRAW THEIR SUITS THE AGENCY SAID A COMPANY SPOKESWOMAN SAID THE 201 MILLION SETTLEMENT HAS ALREADY BEEN ACCOUNTED FOR AS A ONETIME CHARGE IN MCDONNELL DOUGLAS'S RECENTLY REPORTED FOURTH QUARTER RESULTS IF THE COURT APPROVES THE DEAL THE SETTLEMENT WILL BE SURPASSED ONLY BY A 35 MILLION AGE DISCRIMINATION ACCORD LAST SUMMER BETWEEN THE AGENCY AND AMERICAN EXPRESS CO OVER THE DISMISSAL OF MANAGERS AGE 40 AND OVER AT THE COMPANY'S IDS FINANCIAL SERVICES INC UNIT 9303020031 930302 BUSINESS BRIEF TEXACO INC FIRM SETS VENTURE IN RUSSIA TO REPAIR SIBERIAN OIL WELLS TEXACO INC IN ITS FIRST PRODUCTION VENTURE IN RUSSIA AGREED WITH AN OIL AND GAS ASSOCIATION THERE TO RESTORE PRODUCTION IN IDLE WELLS IN RETURN FOR A SHARE OF THE NET OILEXPORT PROCEEDS TEXACO BASED IN WHITE PLAINS NY SAID IT WILL REPAIR UP TO 143 OIL WELLS OF THE SUTORMIN FIELD BEGINNING IN THE SECOND QUARTER OF 1993 TERMS OF THE AGREEMENT WHICH WILL GIVE TEXACO A CERTAIN SHARE OF EXPORT EARNINGS IN US DOLLARS WERE NOT DISCLOSED THE FIELD IN THE TYUMEN REGION OF WESTERN SIBERIA ABOUT 200 MILES SOUTH OF THE ARCTIC CIRCLE HAS AN ESTIMATED ONE BILLION BARRELS OF RECOVERABLE RESERVES ALTHOUGH ABOUT 40 OF THE WELLS ARE IDLE DUE TO VARIOUS TECHNICAL REASONS CURRENT PRODUCTION IS ABOUT 140000 BARRELS OF CRUDE A DAY TEXACO'S WORK IN THE FIELD IS EXPECTED TO INCREASE PRODUCTION BY 15000 TO 20000 BARRELS OF OIL A DAY OVER A TWOYEAR PERIOD SAID A COMPANY SPOKESMAN 9303020030 930302 WHO'S NEWS NANTUCKET INDUSTRIES INC NANTUCKET INDUSTRIES INC NEW YORK RAYMOND L WATHEN WAS NAMED PRESIDENT OF THIS CLOTHING CONCERN'S NEW GUESS INNERWEAR DIVISION WHICH SPECIALIZES IN MEN'S & WOMEN'S UNDERWEAR MR WATHEN 43 YEARS OLD PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT OF SARA LEE INTIMATES A DIVISION OF SARA LEE CORP 9303020029 930302 MAXUM WILL REPORT SIGNIFICANT' '92 LOSS STOCK PRICE FALLS 52 DALLAS SHARES OF MAXUM HEALTH CORP TUMBLED 52 AFTER THE COMPANY SAID IT WOULD REPORT A SIGNIFICANT LOSS FOR 1992 FROM WRITING DOWN ASSETS AND LAUNCHING A RESTRUCTURING OF ITS CORE BUSINESS IN THE FOURTH QUARTER IN AMERICAN STOCK EXCHANGE TRADING SHARES OF THE MEDICAL DIAGNOSTIC IMAGING COMPANY FELL TO 150 DOWN 1625 LESS THAN FIVE WEEKS AGO IN A CONFERENCE CALL WITH ANALYSTS THE COMPANY HAD FORECAST A MUCH ROSIER FOURTH QUARTER WITH EARNINGS OF BETWEEN 7 AND 10 CENTS A SHARE BUT YESTERDAY MAXUM HEALTH SAID REPORTING THOSE RESULTS WOULD BE DELAYED WHILE IT DETERMINES THE EXTENT OF THE FOURTHQUARTER CHARGES STEMMING FROM ADVERSE MARKET CONDITIONS IN THE COMPANY'S MOBILE IMAGING BUSINESS MAXUM HEALTH ALSO ELIMINATED TWO POSITIONS GENERAL COUNSEL AND SENIOR VICE PRESIDENT FOR OPERATIONS THE COMPANY SAID THE LAYOFFS WERE MADE TO CUT COSTS MAXUM HEALTH'S OPERATING RESULTS FOR THE THREE MONTHS ENDED DEC 31 WERE CONSISTENT WITH EXPECTATIONS AND WERE IN FACT NEAR THE HIGH END OF THE 7TO10 CENTASHARE ESTIMATE SAID NANCY J CORDAY WHO WAS PROMOTED IN THE RESTRUCTURING TO CHIEF OPERATING OFFICER FROM SENIOR VICE PRESIDENT BUT THE NUMBER OF PROCEDURES DONE AT ITS MOBILE MAGNETIC RESONANCE IMAGING UNITS AND THE AVERAGE PRICE PER PROCEDURE WERE BOTH DOWN AND EXPECTED TO CONTINUE TO DECLINE IN THE CURRENT ENVIRONMENT FOR HEALTH CARE MS CORDAY SAID PEOPLE WEREN'T GOING TO THEIR PHYSICIAN AND OUR REFERRALS WERE DOWN SHE SAID IT'S IMPORTANT FOR US TO MAKE ADJUSTMENTS NOW ANALYSTS SAY MORE THAN A TEMPORAL DOWNTURN THE MOBILE MRI BUSINESS IS NOT WHAT IT USED TO BE AS MORE AND MORE HOSPITALS PURCHASE THEIR OWN MACHINES THE ECONOMICS OF THE SITUATION HAVE CHANGED SAID FRANK W MORGAN AN ANALYST WITH STERNE AGEE & LEACH THE MOBILE SECTION OF MRI IS NOT AS VIABLE AS IN THE PAST IN 1992 MOBILE MRI UNITS ACCOUNTED FOR 80 OF MAXUM HEALTH'S REVENUE DIVERSIFYING INTO OTHER MEDICAL IMAGING VENTURES SHOULD REDUCE THAT TO 68 DURING THE CURRENT YEAR MS CORDAY SAID 9303020028 930302 GENERAL DYNAMICS REDEMPTION FALLS CHURCH VA GENERAL DYNAMICS CORP SAID ITS BOARD CALLED FOR REDEMPTION ON MAY 15 1993 THE COMPANY'S ENTIRE SERIES OF 9 3/8 NOTES DUE MAY 15 1995 THE NOTES HAVE A FACE VALUE OF 100 MILLION IN ADDITION THE BOARD AUTHORIZED MANAGEMENT TO REDEEM AT ITS DISCRETION THE 45 MILLION FACE VALUE OF 5 3/4 EXCHANGEABLE SUBORDINATED DEBENTURES DUE 2011 CURRENTLY OUTSTANDING 9303020027 930302 WHAT'S NEWS WORLDWIDE OFFICIALS FOCUSED ON A VIDEOTAPE OF CARS THAT ENTERED THE WORLD TRADE CENTER FEDERAL AND NEW YORK CITY OFFICIALS INVESTIGATING FRIDAY'S BOMBING SAID THEY ARE SCANNING THE VIDEOTAPE FOR SUSPICIOUSLOOKING VEHICLES THE BOMB WHICH EXPLODED IN A PARKING GARAGE UNDER THE TWIN TOWERS COMPLEX IS BELIEVED TO HAVE BEEN BROUGHT INTO THE CENTER IN A CAR OR VAN MEANWHILE FEDERAL AGENTS SAID THEY BELIEVE THE BOMB LIKELY WAS MADE OF AMMONIUM NITRATE A FERTILIZER THAT IS ALSO USED AS A COMMERCIAL EXPLOSIVE UNDERGROUND STRUCTURAL PROBLEMS ARE STILL HAMPERING THE INVESTIGATION YESTERDAY A CONCRETE BLOCK WALL COLLAPSED NEAR THE SITE OF THE EXPLOSION CLINTON OUTLINED HIS NATIONAL SERVICE PROGRAM DECLARING IT WOULD CHANGE AMERICA FOREVER THE PRESIDENT IN A SPEECH AT RUTGERS UNIVERSITY IN NEW JERSEY PLEDGED TO REVOLUTIONIZE COLLEGE AID BY ALLOWING STUDENTS TO REPAY LOANS THROUGH COMMUNITY WORK THE PRESIDENT PRAISED THE GOVERNORS OF NEW JERSEY AND VIRGINIA FOR THEIR GUNCONTROL EFFORTS AND REBUKED THE NATIONAL RIFLE ASSOCIATION FOR BEING FIXATED ON DEFENDING THE RIGHT TO BEAR ARMS POLICE AND FEDERAL AGENTS RINGED THE COMPOUND OF AN ARMED RELIGIOUS CULT IN WACO TEXAS WHERE FOUR FEDERAL AGENTS AND TWO SECT MEMBERS WERE KILLED BY GUNFIRE SUNDAY THE BRANCH DAVIDIANS ALLOWED AT LEAST 10 CHILDREN TO LEAVE THE COMPOUND WHERE AT LEAST 75 PEOPLE REMAINED INCLUDING CULT LEADER DAVID KORESH BOSNIAN RELIEF AIRDROPS WERE DESCRIBED AS SUCCESSFUL BY DEFENSE SECRETARY ASPIN WHO SAID MANY OF THE PARCELS DROPPED YESTERDAY LANDED NEAR THE TARGETED TOWN OF CERSKA IN EASTERN BOSNIA BUT SOME BOSNIAN OFFICIALS SAID THE US ATTEMPT TO GET FOOD TO MUSLIMS IN THE EAST APPEARED TO HAVE BEEN AN ALMOST TOTAL FAILURE THE SUPREME COURT AGREED TO DECIDE WHETHER WOMEN EMPLOYEES MUST PROVE THEY SUFFERED SEVERE PSYCHOLOGICAL INJURY AS OPPOSED TO BEING MERELY OFFENDED TO WIN SEXUALHARASSMENT LAWSUITS THE CASE HAS THE POTENTIAL TO INCREASE EMPLOYERS' VULNERABILITY TO SUITS A DECISION IS EXPECTED NEXT YEAR A RECORD 266 MILLION AMERICANS RECEIVED FOOD STAMPS IN DECEMBER THE AGRICULTURE DEPARTMENT SAID CITING LINGERING TROUBLES WITH THE ECONOMY AND THE ONSET OF WINTER MORE THAN ONE AMERICAN IN 10 RECEIVES FOOD STAMPS THE PROGRAM PAID 18 BILLION IN BENEFITS IN DECEMBER THE ISRAELI ARMY ANNOUNCED IT WOULD SEAL OFF THE OCCUPIED GAZA STRIP TODAY UNTIL FURTHER NOTICE AFTER TWO ISRAELIS WERE STABBED TO DEATH IN THE STREETS OF TEL AVIV THE DECISION CAME AFTER A 19YEAROLD PALESTINIAN FROM GAZA WAS ARRESTED FOR YESTERDAY'S STABBING ATTACK IN WHICH NINE OTHER ISRAELIS WERE INJURED IRAQ APPARENTLY HAS EXECUTED HUNDREDS OF PEOPLE FROM ITS SOUTHERN MARSHES IN DEATH CAMPS IN RECENT MONTHS A UN INVESTIGATOR SAID THE MARSHES ARE THE REFUGE OF SHIITE MUSLIM REBELS WHO TRIED TO OVERTHROW SADDAM HUSSEIN'S REGIME AT THE CLOSE OF THE GULF WAR THE UN CANCELED ANGOLAN PEACE TALKS AFTER UNITA REBEL LEADERS FAILED FOR THE SECOND TIME IN A MONTH TO SHOW UP FOR NEGOTIATIONS WITH GOVERNMENT OFFICIALS A CEASEFIRE SEEMS MORE REMOTE THAN EVER A UN ENVOY SAID IN ETHIOPIA WHERE THE TALKS HAD BEEN SCHEDULED HEAVY FIGHTING WAS REPORTED IN THE ANGOLAN CITY OF HUAMBO THE CLINTON ADMINISTRATION WANTS THE SUPREME COURT TO UPHOLD THE EXCLUSIONARY POLICY ON HAITIAN REFUGEES THAT THE PRESIDENT CRITICIZED DURING THE CAMPAIGN THE ADMINISTRATION WILL ASK THE COURT TODAY TO ALLOW THE GOVERNMENT TO CONTINUE INTERCEPTING BOAT PEOPLE AND RETURNING THEM HOME WITHOUT CONSIDERING THEIR PLEAS FOR POLITICAL ASYLUM SALVADORAN LEADER CRISTIANI URGED A UNAPPOINTED PANEL TO HOLD BACK KEY ELEMENTS OF ITS REPORT ON THE WORST ATROCITIES OF EL SALVADOR'S CIVIL WAR THE PRESIDENT CALLED ON THE COMMISSION TO DELAY RELEASING THE NAMES OF POLITICAL MILITARY AND REBEL LEADERS WHO ARE IMPLICATED EXPLAINING THAT A CONFRONTATION COULD BE GENERATED SIX EXSOVIET REPUBLICS ARE CONSIDERING WHETHER TO ESTABLISH A JOINT MILITARY STRUCTURE THAT WOULD BE SIMILAR TO NATO THE COMMANDER IN CHIEF OF THE COMMONWEALTH OF INDEPENDENT STATES SAID 9303020025 930302 LOCAL PUBS ARE A THING OF THE PAST FOR MANY IN ENGLAND THEIR CLOSINGS HASTEN AN END TO OLD WAYS OF RURAL LIFE NO PLACE FOR A CHINWAG' BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL BEESTON ENGLAND AFTER DAYS OF DULL SKIES AND SLASHING RAIN IVAN BARKER DECIDES TO RISK THE RIDE THE RETIRED FARM WORKER DONS A TIE FRAYED TWEED JACKET AND WOOLEN CAP THEN CLIMBS ON A PREWAR RALEIGH BICYCLE HIS ROUTE THREE MILES OF COUNTRY LANE THROUGH FIELDS OF BARLEY AND SUGAR BEET TO THE NEAREST PUB I'LL HAVE A STIFF HEAD WIND GOING THE 60YEAROLD SAYS BUT THE WIND WILL BE AT MY BACK COMING HOME WHEN I'LL NEED IT AS HE CYCLES OFF HIS NEXTDOOR NEIGHBOR AND DRINKING COMPANION OF 40 YEARS JACK DURANT WATCHES ENVIOUSLY A HEAVYSET MAN OF 64 MR DURANT MAKES THE RIDE ONLY ON STILL DAYS RARE IN THIS NORFOLK VILLAGE WHOSE NAME COMES FROM A SAXON PHRASE FOR BENT GRASS MR DURANT LIKE HIS FRIEND IS A BACHELOR HE DOESN'T READ FIDGETING BY THE FIRE HE GAZES AT THE BEER MUG ON HIS WINDOW SILL WHICH NOW HOLDS BUTTONS AND KEYS THERE'S NO POINT DRINKING HE SAYS IF YOU CAN'T HAVE A CHINWAG TOO A CHINWAG SLANG FOR CHAT WAS SOMETHING MR DURANT COULD COUNT ON AT THE PLOUGHSHARE THE BEESTON PUB WHERE HE USED TO HANG HIS MUG BUT IN OCTOBER THE PUB CLOSED AND WITH IT A 500YEAR CHAPTER IN THE LIFE OF THIS RURAL COMMUNITY SUDDENLY LIKE HUNDREDS OF OTHER VILLAGES ACROSS BRITAIN BEESTON FOUND ITSELF WITHOUT A PUB AND WITHOUT A SOCIAL HUB PUB CLOSINGS OCCUR FOR MANY REASONS ONE OF WHICH IS BRITAIN'S RUINOUS RECESSION BUT ABOVE ALL THE PASSING OF VILLAGE PUBS REFLECTS AS WELL AS HASTENS THE DEMISE OF TRADITIONAL VILLAGE LIFE IN BEESTON AS ELSEWHERE THE VILLAGE SCHOOL CHURCH AND STORE ALSO ARE AT RISK AS THE POPULATION AGES AND NEWCOMERS COMMUTE FOR WORK SHOPPING AND ENTERTAINMENT THE TRADITIONAL VILLAGE OF ROMANTIC IDYLL WHERE EVERYONE KNOWS THEIR NEIGHBOR AND WORKS NEAR HOME IN OLDYWORLDY OCCUPATIONS IS JUST ABOUT GONE SAYS JONATHAN MURDOCH A RESEARCHER AT THE CENTRE FOR RURAL ECONOMY IN NEWCASTLE THIS CHANGE DECADES IN THE MAKING SENDS RIPPLES BEYOND RURAL BRITAIN THE VILLAGE ALSO HAS A STRONG GRIP ON THE BRITISH IMAGINATION EMBODYING A QUAINT PARADISE OF COWBELLS AND ROSECOVERED COTTAGES AND IT IS TO THE VILLAGE PUB ABOVE ALL THAT BRITONS LOOK FOR VESTIGES OF THEIR RURAL HERITAGE THE PUB HAS ALWAYS BEEN A KIND OF RUSTIC RELIGION SAYS KEITH SKIPPER A BEESTONBORN RADIO BROADCASTER IN NORFOLK IT ISN'T JUST A BOOZING DEN IT'S THE TRADITIONAL SOUL OF MOST VILLAGES IN RURAL COUNTIES SUCH AS NORFOLK IT IS EASY TO SEE WHY A FLAT LAND OF HEDGEROWS NORMAN CHURCHES AND VILLAGES NAMED HORSEY AND HOE NORFOLK OFFERS FEW DIVERSIONS UNTIL ABOUT 1920 RURAL WORKERS HERE AND ACROSS BRITAIN WERE PAID PARTLY IN ALE OR CIDER AND ONCE WENT ON STRIKE WHEN A HOPS SHORTAGE DENIED THEM THEIR HARVEST BEER MOST WENT STRAIGHT FROM FIELD TO PUB UNTIL THE 1950S THEIR OWN HOMES OFTEN LACKED ELECTRICITY CARS WERE SCARCE PEOPLE WENT TO THE PUB EVERY NIGHT BECAUSE THEY WERE BORED STUPID AT HOME SAYS MAURICE PRINDIVILLE WHO OWNS A NOWCLOSED PUB IN THE COTSWOLDS AS A CHILD IN LONDON'S EAST END MR PRINDIVILLE WAS EVACUATED TO THE COUNTRY DURING THE BLITZ AND HE DREAMED FOR YEARS AFTER OF RETURNING BUT WHEN HE FINALLY FLED LONDON AND BOUGHT A VILLAGE PUB IN 1987 HE FOUND THAT RURAL LIFE HAD CHANGED A HANDFUL OF WORKINGCLASS TYPES MOSTLY NATIVES STILL DRANK AT THE PUB HE SAYS BUT THE REST ARE MIDDLECLASS COMMUTERS WHO GET HOME LATE AND WOULD RATHER DRINK AT HOME IN FRONT OF THE TELLY WHILE ALMOST 80 OF BEER IN BRITAIN STILL IS CONSUMED IN PUBS THERE IS A DRAMATIC SHIFT TO AMERICANSTYLE HOME DRINKING IN PART BECAUSE OF TOUGH LAWS AGAINST DRINKING AND DRIVING MR PRINDIVILLE THINKS THE WOMEN'S MOVEMENT ALSO HAS DENTED A PASTIME THAT OFTEN EXCLUDEDAND OFFENDEDWOMEN IF THEIR HUSBAND'S A BEERSWILLING OAF WHO COMES HOME DRUNK EVERY NIGHT MOST WOMEN WON'T STAND FOR IT NOW HE SAYS BEESTON TYPIFIES THE CHANGED LANDSCAPE A CENTURY AGO IT HAD 469 PEOPLE AND THREE PUBSPLUS TWO GROCERS A DRAPER BLACKSMITH AND WHEELWRIGHT TODAY WITH ABOUT THE SAME POPULATION IT HAS NO PUB AND ONE STRUGGLING STORE ITS 14THCENTURY CHURCH SHARES A VICAR WITH SIX OTHER VILLAGES MOST SUNDAYS ONLY A DOZEN PEOPLE ATTEND FOR A MAKESHIFT SERVICE THE ONLY OTHER MEETING PLACE IS THE VILLAGE SHOP IT HAS A STOOL BY THE COUNTER FOR LINGERING AND PROPRIETORS WHO OFFER TEAAS WELL AS POSTAL AND BANKING SERVICES DRY CLEANING MILK DELIVERY HORSE FEED AND SMALL GOODS WE NEED TO HAVE THAT MANY THINGS JUST TO KEEP GOING SAYS THE OWNER BRIAN POTTER THE SHOP LOST ONE OF ITS BEST CUSTOMERS WHEN THE PUB CLOSED NOW IT RELIES ON PARENTS WHO DROP KIDS AT BEESTON'S THREEROOM SCHOOL BUT WITH ONLY 38 PUPILS THE SCHOOL MAY SOON SHUT TOO IF IT DOES BEESTON WOULD BECOME ANOTHER GHOST VILLAGE JUST A DORMITORY MR POTTER SAYS ABOUT A THIRD OF NORFOLK VILLAGES HAVE LOST PUBS SHOPS AND SCHOOLS SINCE 1950 IN MANY HAMLETS THE ONLY PUBLIC FACILITY LEFT IS A LONE RED PHONE BOOTH BESIDE WHAT WAS ONCE THE VILLAGE GREEN MR POTTER LIKE MANY LONGTIME RESIDENTS BLAMES THE CHANGE ON YUPPIES AND OLDIES WHO HAVE FLOODED NORFOLK AND WHO NOW MAKE UP HALF OF BEESTON RETIREES DRAIN THE SCHOOL ROLLS YOUNG NEWCOMERS TEND TO WORK AND SHOP OUTSIDE THE VILLAGE AND BOTH PUSH UP HOME PRICES MAKING IT HARD FOR YOUNG NATIVES TO STAY SUBTLER BUT EQUALLY PROFOUND IS THE GULF THAT HAS OPENED BETWEEN INSIDERS AND OUTSIDERS HERE AND IN ALMOST EVERY OTHER BRITISH VILLAGE NEWCOMERS DON'T LIKE THE SMELL OF MANURE AND THE SOUND OF TRACTORS MR POTTER CLAIMS THEY DON'T FIT IN NEWCOMERS RESPOND THAT LOCALS DON'T GIVE THEM A CHANCE STEVE CAPEL A LONDONER WHO HAS WORKED AT THE PLOUGHSHARE AND OTHER RURAL PUBS SAYS LOCALS WOULD OFTEN GO SILENT AND STARE WHEN STRANGERS CAME IN THESE VILLAGES HAVE A HITCHCOCK QUALITY FULL OF DARK LOOKS AND OLD FEUDS HE SAYS YOU NEED TO SET YOUR WATCH BACK 200 YEARS INDEED A MAGAZINE SURVEY RECENTLY NAMED MILEHAM A FEW MILES FROM BEESTON ONE OF THE UNFRIENDLIEST VILLAGES IN BRITAIN ASKED HOW LONG IT TAKES FOR NEWCOMERS TO BE ACCEPTED A MILEHAM CLERK RESPONDED FOREVER A BIG REASON HE SAID WAS THE VILLAGE'S LOSS OF ITS PUB WHERE NEW ARRIVALS ONCE INTEGRATED SLOWLY INTO INSULAR NORFOLK SOCIETY IF THERE'S NO PUB IT'S HARD TO BREAK THE ICE SAYS ERNIE STIMSON A RETIREE WHO HAS LIVED IN BOTH MILEHAM AND BEESTON WALKING HIS DOG BY BEESTON'S DUCK POND HE SAYS OF HIS NEIGHBORS WE STILL SMILE AND WAVE BUT WE DON'T HAVE A RELAXED NATTER THE WAY WE COULD OVER A PINT AT THE PLOUGHSHARE THE PUB ALSO WAS THE MEETING PLACE FOR GROUPS SUCH AS THE DARTS CRICKET AND CLAYPIGEON CLUBS ALL NOW HAVE FOLDED OR MOVED TO OTHER VILLAGES HERE TOO WERE WEDDING PARTIES AND REUNIONSINCLUDING THOSE OF RETURNING US VETERANS WHO FLEW FROM A BEESTON AIR BASE IN WORLD WAR II BACK THEN WHEN BEER WAS RATIONED THEY WEREN'T ALWAYS SO WELCOME WORKING LATE DURING HARVESTS FARMERS OFTEN REACHED LOCAL PUBS ONLY TO FIND THAT THE YANKS HAD ALREADY BEEN THERE AND DRUNK ALL THE BEER SAYS ERNEST PARKE A BEESTON FARM WORKER THEY'LL BE SAD TO FIND THERE'S NONE LEFT FOR ANYBODY NOW ANOTHER PROBLEM THE LETTERS PH FOR PUBLIC HOUSE APPEAR ON GOVERNMENT MAPS USED BY HIKERS MANY OF WHOM PLAN TRIPS AROUND A PUB LUNCH THEY NOW OFTEN TURN UP TIRED AND HUNGRY TO FIND THEY HAVE MILES TO GO TO FIND AN OPEN PUB TRADE GROUPS SAY THAT 2000 OF BRITAIN'S 60000ODD PUBS HAVE SHUT SINCE 1989 WHILE VILLAGE PUBS NEAR CITIES AND IN TOURIST CENTERS CAN STILL THRIVE MORE REMOTE ONES OFTEN CLOSE DURING THE DAY FOR LACK OF TRADE OTHERS SURVIVE BECAUSE THEIR NEIGHBORS HAVEN'T AT LEAST HALF MY CUSTOMERS ARE REFUGEES SAYS MELVYN GOFF PUBLICAN AT THE BULL IN LITCHAM WHICH DRAWS ON BEESTON AND OTHER PUBLESS VILLAGES GOING EVEN A FEW MILES THOUGH CAN BE HARD ON THOSE WHO DON'T OWN CARS RUSSELL CROSS ONCE DROVE HIS TRACTOR FROM THE FIELD TO THE BULL HAD A FEW TOO MANY BEERS AND SWERVED BADLY ON THE WAY HOME TO BEESTON THE POLICE PULLED HIM OVER AND SUSPENDED HIS LICENSE HE NOW TRAVELS TO LITCHAM RARELY BY BIKE I WORRY ABOUT HIM LANDING IN A DITCH SAYS HIS WIFE BETTY LIKE MANY VILLAGE WOMEN THOUGH SHE SEES LITTLE VIRTUE IN HER HUSBAND STAYING HOME INSTEAD I HAVE MY FRIENDS AND HE HAS HIS SHE SAYS MR BARKER THE RALEIGHRIDING RETIREE TAKES HALF AN HOUR TO PEDAL THE THREE MILES TO THE BULL WHEN THE PLOUGHSHARE WAS OPEN HE WENT THERE ALMOST DAILY NOW HE DRINKS TWICE A WEEK WEATHER PERMITTING THE RIDE IS ONE REASON BUT ANOTHER IS THE AWKWARDNESS HE FEELS WHEN DRINKING ON ALIEN TURF SIPPING HIS FIRST PINT HE CHATS WITH FELLOW DRINKERS ABOUT THE 'ORRIBLE WEATHER BUT LATER HE CONFIDES IT'S NOT THE PLOUGHSHARE IS IT IT'S NOT YOUR OWN PUB MR BARKER NEVER MARRIED HIS SIBLINGS HAVE MOVED HE HAS NEVER BEEN MORE THAN A DAY'S CYCLE FROM BEESTON SO THE CIRCLE OF WORKERS AT THE PLOUGHSHARE SHRUNK OVER TIME BY FARM MECHANIZATION WAS AS CLOSE TO A FAMILY AS I HAD HE SAYS AS A YOUNGER MAN HE ALSO WENT TO PUBS TO PLAY THE ACCORDION SUCH MUSICMAKING IS RARE NOW AS EVEN VILLAGE PUBS HAVE TVS SLOT MACHINES AND POOL TABLES MANY ALSO NOW HAVE POLISHED BRASS AND PLUSH RED CARPET EVEN ODDER FOR MR BARKER IS THE FACT THAT PUBS ONCE FAMED FOR THEIR MEAGER FARE OFTEN SERVE FANCY MEALS PEOPLE EAT NOW DON'T THEY HE SAYS AS DINERS SCAN A LONG MENU SHAKING HIS HEAD HE ADDS TIMES CHANGE SO DOES THE WEATHER WHEN THE PUB SHUTS FOR THE AFTERNOON AT 3 PM MR BARKER EMERGES TO A FRIGID DRIZZLE AT LEAST I'VE GOT A DROP OF ANTIFREEZE IN ME NOW HE SAYS CYCLING SLOWLY HOME HE ALSO IS WARMED BY THE PROSPECT OF A GOOD CHINWAG WITH HIS NEIGHBOR MR DURANT JACK WILL BE WAITING FOR ME I'M SURE OF THAT HE SAYS WE'VE GOT A WHOLE AFTERNOON OF PUB TIME TO TALK ABOUT 9303020024 930302 BUSINESS BRIEF GENERAL MOTORS CORP REDEMPTIONS ARE SCHEDULED OF TWO ISSUES OF PREFERRED GENERAL MOTORS CORP SAID IT IS SPENDING 265 MILLION TO REDEEM TWO SERIES OF PREFERRED STOCK ISSUED IN 1930 AND 1946 TO ELIMINATE RESTRICTIVE COVENANTS THE STOCKS PLACE ON THE DETROIT AUTO MAKER THE AGREEMENTS PROHIBIT GM FROM PAYING DIVIDENDS TO HOLDERS OF COMMON STOCK UNLESS IT HAS ENOUGH READY ASSETS INCLUDING CASH RECEIVABLES AND INVENTORY TO COVER CURRENT BILLS AND MAINTAIN A 1758 MILLION CUSHION GM CURRENTLY HAS NEARLY 8 BILLION OF CASH AND MARKETABLE SECURITIES BUT THE COMPANY SAID THAT REDEEMING THE STOCKS WILL GIVE IT FLEXIBILITY TO REDUCE INVENTORY OR SELL RECEIVABLES HELD BY ITS CONSUMER FINANCE ARM THE AUTO MAKER SAID THE STOCKS ARE TO BE REDEEMED MAY 1 HOLDERS OF THE 500 SERIES OF PREFERRED ARE TO BE PAID 120 A SHARE AND ACCRUED DIVIDENDS OF 43 CENTS A SHARE EACH SHARE OF 375 SERIES WILL BE REDEEMED AT 100 A SHARE PLUS DIVIDENDS OF 32 CENTS A SHARE 9303020023 930302 WHO'S NEWS CONTINENTAL BANK CORP TAPS 2 VETERAN OFFICERS TO BE VICE CHAIRMEN CHICAGO CONTINENTAL BANK CORP PROMOTED TWO VETERAN OFFICERS WILLIAM M GOODYEAR AND MICHAEL J MURRAY TO NEW POSITIONS AS VICE CHAIRMEN THE PROMOTIONS REFLECT CONTINENTAL'S INTEREST IN RECOGNIZING THE TWO MEN AFTER MORE THAN 20 YEARS OF SERVICE EACH RATHER THAN ANY GRAND PLAN OF SUCCESSION A SPOKESMAN SAID MR GOODYEAR 44 YEARS OLD AND MR MURRAY 48 WILL JOIN ANOTHER VICE CHAIRMAN RICHARD L HUBER 56 IN REPORTING TO THOMAS C THEOBALD THE COMPANY'S 55YEAROLD CHAIRMAN MR HUBER IS IN CHARGE OF CAPITAL MARKETS AND EQUITY INVESTMENTS THE TWO NEW VICE CHAIRMEN PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENTS MR GOODYEAR HEADS CONTINENTAL'S PRIVATE BANKING CHICAGO METROPOLITAN BANKING AND DISTRIBUTION DEPARTMENTS MR MURRAY RUNS CONTINENTAL'S CORPORATE BANKING OPERATIONS BOTH ARE MEMBERS OF THE BANK'S SIXMEMBER MANAGEMENT COMMITTEE IN THEIR NEW POSITIONS THEY ALSO WILL SERVE AS DIRECTORS EXPANDING CONTINENTAL'S BOARD TO 14 9303020022 930302 DOW JONES EQUITY MARKETS INDEX NEW YORK SOUTHTRUST CORP IS REPLACING DOMINION BANCSHARES IN THE SOUTHERN REGIONAL BANKS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKETS INDEX EFFECTIVE TODAY DOMINION BANCSHARES WAS ACQUIRED BY FIRST UNION CORP 9303020021 930302 MAGAININ PHARMACEUTICALS SHARES PLYMOUTH MEETING PA MAGAININ PHARMACEUTICALS INC SAID THE UNDERWRITERS OF ITS PUBLIC OFFERING IN JANUARY EXERCISED THEIR OPTION TO BUY AN ADDITIONAL 375000 SHARES AT 6 EACH EXERCISE OF THE OVERALLOTMENT OPTION BRINGS THE OFFERING TO 3875000 SHARES AND RAISES THE NET PROCEEDS TO MAGAININ TO 215 MILLION THE COMPANY SAID IT WILL USE THE FUNDS FOR RESEARCH AND DEVELOPMENT INCLUDING CLINICAL STUDIES OF ITS BROAD SPECTRUM TOPICAL ANTIBACTERIAL AND ANTIFUNGAL DRUG MSI78 HAMBRECHT & QUIST INC SMITH BARNEY HARRIS UPHAM & CO AND SG WARBURG SECURITIES WERE THE UNDERWRITERS 9303020020 930302 TECHNOLOGY BRIEF CYTOTHERAPEUTICS INC PATENT EXPANDS TECHNOLOGY TO TREAT DISEASE OF HUMANS CYTOTHERAPEUTICS INC PROVIDENCE RI SAID THE US PATENT AND TRADEMARK OFFICE GRANTED A PATENT COVERING USE OF TWO OR MORE CELL TYPES ENCLOSED WITHIN A MEMBRANE IN HUMAN THERAPEUTIC PRODUCTS THE COMPANY SAID THE TECHNOLOGY COVERED BY THE PATENT EXPANDS THE APPLICATIONS OF ITS ENCAPSULATION TECHNOLOGY TO TREAT HUMAN DISEASE AND ALLOWS IT TO SYNERGISTICALLY COMBINE A THERAPEUTIC CELL TYPE AND A SUPPORT CELL WITHIN A SINGLE SEMIPERMEABLE CAPSULE THAT CAN BE IMPLANTED INTO THE BODY GENETICALLY ENGINEERED CELLS ARE ALSO COVERED BY THE PATENT THE COMPANY SAID NOT JUST NATURALLY OCCURRING CELL TYPES THE INVENTORS ARE PATRICK AEBISCHER A CYTOTHERAPEUTICS COFOUNDER AND PROFESSOR AT BROWN UNIVERSITY AND SHELLEY R WINN A SCIENTIST AT CYTOTHERAPEUTICS THE COMPANY SAID 9303020019 930302 MARKETING BRIEF NOTED LEGAL REFERRALS KIII COMMUNICATIONS CORP ACQUIRED THE FORWARDERS LIST DIRECTORY FOR AN UNDISCLOSED AMOUNT THE FORWARDERS LIST IS A NATIONWIDE DIRECTORY OF COMMERCIAL ATTORNEYS USED FOR REFERRAL OF OUTOFTOWN LEGAL MATTERS PRIMARILY COMMERCIAL DEBT COLLECTION 9303020018 930302 INTERNATIONAL NOKIA SAYS DEFICIT WIDENED LAST YEAR CHARGES ARE CITED SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM NOKIA OY A FINNISH ELECTRONICS CONCERN SAID ITS NET LOSS WIDENED SHARPLY LAST YEAR TO 723 MILLION MARKKAA 123 MILLION FROM 211 MILLION MARKKAA A YEAR EARLIER THE RESULT OF BIG ONETIME CHARGES AT ITS FOUNDERING CONSUMER ELECTRONICS DIVISION BUT NOKIA OFFERED AN UPBEAT 1993 FORECAST SAYING IT EXPECTS OPERATING PROFIT TO INCREASE THIS YEAR THE COMPANY ALSO EXPRESSED GUARDED OPTIMISM IN ITS LONG HUNT FOR A STRATEGIC PARTNER TO HELP REVIVE THE CONSUMER ELECTRONICS OPERATION EUROPE'S THIRD BIGGEST COLORTV MANUFACTURER NOKIA'S PRETAX LOSS EXCLUDING ONETIME ITEMS NARROWED TO 158 MILLION MARKKAA FROM A 324 MILLIONMARKKAA PRETAX LOSS THE PREVIOUS YEAR AND THE COMPANY SWUNG TO 1992 OPERATING PROFIT OF 288 MILLION MARKKAA FROM A YEAREARLIER OPERATING LOSS OF 96 MILLION MARKKAA THE COMPANY CREATED A 342 MILLIONMARKKAA RESERVE FOR RESTRUCTURING COSTS IT EXPECTS TO INCUR THIS YEAR IN ADDITION NOKIA WROTE OFF 243 MILLION MARKKAA IN GOODWILL INCURRED THROUGH THE ORIGINAL ACQUISITION OF CONSUMER ELECTRONICS UNITS IN 1988 THE GOODWILL WRITEOFF NOKIA SAID REDUCES THE DIVISION'S PREVIOUSLY INFLATED ASSET VALUES TO A MORE REASONABLE LEVEL AND PUTS US IN A GOOD POSITION FOR THE ONGOING PARTNERSHIP DISCUSSIONS JORMA OLLILA CHIEF EXECUTIVE OFFICER ALSO SAID NOKIA HAS CONCLUDED A TV PICTURETUBE COOPERATION PACT WITH HITACHI LTD UNDER THE PACT HITACHI WILL HELP MAKE SURE THAT OUR ESSLINGEN GERMANY TV FACTORY IS AS EFFICIENT AS POSSIBLEPLUS BUY A SIGNIFICANT VOLUME OF THAT PLANT'S PRODUCTION SOMETHING WHICH THEY HAVEN'T DONE BEFORE MR OLLILA SAID 9303020017 930302 BUSINESS BRIEF BOMBARDIER INC MISSILE VENTURE IS FORMED WITH UNIT OF THOMSON SA BOMBARDIER INC MONTREAL SAID ITS SHORT BROTHERS PLC UNIT IN NORTHERN IRELAND FORMED A 5050 JOINT VENTURE WITH THOMSONCSF OF FRANCE IN THE FIELD OF VERYSHORTRANGE SURFACETOAIR DEFENSE MISSILE SYSTEMS FINANCIAL TERMS WEREN'T DISCLOSED THE VENTURE WHICH IS TO INCLUDE EXISTING OPERATIONS OF THE TWO COMPANIES WILL HAVE ESTIMATED ANNUAL SALES OF 270 MILLION CANADIAN DOLLARS US2158 MILLION BOMBARDIER SAID THOMSONCSF IS A UNIT OF THOMSON SA SEPARATELY BOMBARDIER SAID ITS PLANT IN BRUGES BELGIUM HAD TO INTERRUPT PRODUCTION OF SHUTTLETRAIN CARS FOR THE ENGLISH CHANNEL TUNNEL BECAUSE OF TOTAL CONGESTION OF THE PRODUCTION LINE IT CITED TRANSMANCHE LINK THE FRANCOBRITISH GROUP IN CHARGE OF THE TUNNEL PROJECT FOR FAILING TO GIVE TIMELY APPROVAL OF WORK IN PROGRESS BOMBARDIER A TRANSPORTATIONEQUIPMENT AND AEROSPACE MAKER ALREADY IS SEEKING REIMBURSEMENT FROM TRANSMANCHE FOR VARIOUS COST OVERRUNS INCURRED ON THE PROJECT 9303020016 930302 ECONOMY CLINTON WEIGHS CORPORATE TAX ON HEALTH CARE REVENUERAISING IDEA SEES SURCHARGE ON BENEFITS PROVIDED TO EMPLOYEES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING A CORPORATE TAX ON EMPLOYERPROVIDED HEALTH BENEFITS TO HELP PAY FOR EXTENDING HEALTH COVERAGE TO ALL AMERICANS UNTIL NOW NEWS REPORTS OF TAXING EMPLOYERPROVIDED HEALTH BENEFITS HAD FOCUSED MAINLY ON IMPOSING LEVIES ON EMPLOYEES WHO RECEIVE HIGHPRICED COVERAGE BUT SOME CLINTON ADVISERS BELIEVE IT WOULD BE LESS POLITICALLY DANGEROUS TO SUGGEST A TAX ON EMPLOYERS WHICH WOULD BE AKIN TO A SURCHARGE ON THE BENEFITS PAYMENTS MADE ON BEHALF OF THEIR EMPLOYEES MR CLINTON WOULD REQUIRE ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF HEALTH COVERAGE FOR THEIR WORKERS THEN HAVE THE COMPANIES PAY A TAX CALCULATED AS A CERTAIN PERCENTAGE OF THOSE BENEFITS TO THE FEDERAL GOVERNMENT TO HELP FUND COVERAGE FOR THE UNEMPLOYED THE TAX IS ONE OF MORE THAN 30 REVENUERAISING IDEAS BEING STUDIED BY THE ADMINISTRATION'S HEALTHCARE TASK FORCE HEADED BY HILLARY RODHAM CLINTON ALTHOUGH NO DECISIONS HAVE BEEN MADE OFFICIALS SAID THE CORPORATE TAX IS BEING CONSIDERED SERIOUSLY IN AN INTERVIEW YESTERDAY ON MTV THE MUSIC VIDEO NETWORK MR CLINTON ALSO GAVE HIS MOST DEFINITE COMMENTS TO DATE ON THE LIKELIHOOD OF ANOTHER MUCHDISCUSSED IDEA TO HELP PAY FOR HIS HEALTH PLAN ASKED WHETHER HE WOULD RAISE THE FEDERAL EXCISE TAX ON CIGARETTES TO HELP FINANCE THE HEALTHCARE OVERHAUL MR CLINTON SAID I BELIEVE IT SHOULD BE RAISED BUT HE STOPPED SHORT OF SAYING HE WOULD PROPOSE AN INCREASE IN THE EXCISE TAX AS PART OF THE HEALTHCARE PACKAGE MEMBERS OF THE TASK FORCE BELIEVE THAT BUSINESSES WILL BENEFIT GREATLY FROM MR CLINTON'S PLAN TO RESTRUCTURE THE AMERICAN HEALTH SYSTEM AND CONTROL RISING MEDICAL COSTS CONSEQUENTLY THEY ARE STUDYING WAYS TO RECAPTURE SOME OF THE HEALTH SAVINGS FROM THE PRIVATE SECTOR MR CLINTON IS ALSO HOPING TO GENERATE MORE MARKET COMPETITION AMONG HEALTH PROVIDERS WITH HIS PLAN TAXING EMPLOYERS A CERTAIN PERCENTAGE OF THEIR HEALTH PREMIUMS MIGHT WORK WELL TOWARD THAT END BY PRODDING COMPANIES TO SHOP MORE SMARTLY FOR HIGHQUALITY CARE AT THE BEST PRICE BUT SUCH AN IDEA IS LIKELY TO BE OPPOSED STRONGLY BY SMALLBUSINESS GROUPS MANY OF WHOM ALREADY VEHEMENTLY OBJECT TO THE IDEA OF REQUIRING EMPLOYERS TO BUY WORKER HEALTH COVERAGE EVEN WITHOUT A FEDERAL MANDATE TO PROVIDE HEALTH COVERAGE PRIVATE EMPLOYERS SPENT 188 BILLION ON HEALTH INSURANCE FOR THEIR WORKERS IN 1991 ACCORDING TO THE EMPLOYEE BENEFITS RESEARCH INSTITUTE IMPOSING A 1 TAX ON THAT AMOUNT WOULD YIELD NEARLY 2 BILLION A 4 TAX WOULD YIELD 76 BILLION IT IS UNCLEAR HOW BIG A LEVY THE ADMINISTRATION IS CONSIDERING A PRELIMINARY WORK PLAN FOR THE TASK FORCE ESTIMATES THAT EXTENDING HEALTH COVERAGE TO THE ROUGHLY 37 MILLION AMERICANS WHO NOW LACK IT COULD COST THE GOVERNMENT AN ADDITIONAL 30 BILLION TO 90 BILLION A YEAR YESTERDAY IRA MAGAZINER A SENIOR WHITE HOUSE POLICY AIDE WHO MANAGES DAILY OPERATIONS OF THE HEALTH TASK FORCE INDICATED A VALUE ADDED TAX WHICH IS A TYPE OF NATIONAL SALES TAX LEVIED AT ALL STAGES OF PRODUCTION WAS AN OPTION TO PAY FOR HEALTHCARE REFORM SEVERAL ADMINISTRATION OFFICIALS INCLUDING THE PRESIDENT HIMSELF HAVE DISCUSSED THE APPEAL OF A VAT TAX RECENTLY BUT THE WHITE HOUSE HAS STRESSED REPEATEDLY THAT THE PRESIDENT IS UNLIKELY TO PROPOSE SUCH A MEASURE ANYTIME SOON JEFFREY H BIRNBAUM AND MARY AGNES CAREY CONTRIBUTED TO THIS ARTICLE 9303020015 930302 WHO'S NEWS VIDEO LOTTERY SELECTS JJ DAVEY TO BECOME ITS CHIEF EXECUTIVE BOZEMAN MONT VIDEO LOTTERY TECHNOLOGIES INC SAID IT NAMED 51YEAROLD JAMES J DAVEY PRESIDENT OF ITS AUTOMATED WAGERING INTERNATIONAL INC SUBSIDIARY AS CHIEF EXECUTIVE OFFICER AND A DIRECTOR THE MAKER OF GAMBLING MACHINES SAID MR DAVEY FORMERLY LOTTERY DIRECTOR FOR OREGON SUCCEEDS STEPHEN M BARRETT WHO SERVED AS CHIEF EXECUTIVE DURING A MANAGEMENT TRANSITION PERIOD MR DAVEY INCREASES BOARD MEMBERSHIP TO FIVE LAST OCTOBER VIDEO LOTTERY'S FOUNDER LARRY LIPPON RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER BECAUSE OF AN INQUIRY QUESTIONING HIS CREDIBILITY THE VICTORIAN GAMING COMMISSION IN AUSTRALIA REMOVED THE COMPANY FROM A LIST OF APPROVED SUPPLIERS CITING MR LIPPON'S ASSOCIATION WITH TWO CRIMINALS AS WELL AS TWO ACTS OF DISHONESTY AS CHAIRMAN MR LIPPON WAS SUCCEEDED BY DANIEL BOWER MR BARRETT WAS NAMED CHIEF EXECUTIVE OFFICER MR BARRETT IS RETURNING TO HIS LAW FIRM KIRWAN & BARRETT WHICH HAS ACTED AS LEGAL COUNSEL FOR THE COMPANY SINCE 1989 9303020013 930302 LETTERS TO THE EDITOR WARCRIMES MUSEUM JUST PROLONGS HATRED I WAS INTERESTED TO READ OF YOUR REPORTER'S VISIT TO THE WARCRIMES MUSEUM IN HO CHI MINH CITY WITH ITS PHOTOGRAPHS OF US SOLDIERS TORTURING BEHEADING OR OTHERWISE MUTILATING VIETNAMESE AND THE OLD US BULLDOZER USED FOR LEVELING HABITATION GARDENS RICE FIELDS WOODS CEMETERIES ETC BUY THOSE ZIPPOS CATCH SOME WAVES VISIT A WAR MUSEUM PAGE ONE JAN 25 YOUR REPORTER IS WRONG HOWEVER ABOUT THE REASON FOR THE BOMBING OF THE OLD AMERICAN EMBASSY ON HAM NGHI STREET THE CAR BOMB THAT WENT OFF AT 1055 AM ON MARCH 30 1965 KILLED TWO AMERICANS INCLUDING A SECRETARY ACROSS THE STREET THE WALLS OF AN OPENAIR CAFE WERE SPATTERED WITH THE ARMS AND LEGS AND BODIES OF INNOCENT PATRONS FIFTEEN VIETNAMESE WERE KILLED THE EMBASSY SECRETARY WAS SERVING HER COUNTRY AND HELPING THE SOUTH VIETNAMESE IN THEIR LONG TRIAL OF SUFFERING ROBERT MCNAMARA WAS NOWHERE IN THE COUNTRY HE WAS IN WASHINGTON THE BOMBING WAS AN ACT OF PURE TERRORISM I AM GLAD THAT THE US HAS NO MUSEUM WHERE THE PUBLIC IS ENCOURAGED TO VIEW THE WAR CRIMES OF THE VIETNAMESE COMMUNISTS AGAINST AMERICANS AND AGAINST THEIR OWN COUNTRYMEN ONE MUSEUM CERTAINLY WOULD NOT BE BIG ENOUGH TO CONTAIN THE EVIDENCE OF THE DEATH AND DESTRUCTION INFLICTED BY HANOI'S AGENTS IN THE NAME OF LIBERATION SURELY IT IS TIME TO PUT THIS KIND OF HATRED AND HATEFULNESS BEHIND US AMERICANS AND SOUTH VIETNAMESE WILL ONE DAY HAVE TO FORGIVE IF THEY CANNOT FORGET RECONCILIATION MUST COME HANOI COULD MAKE A SMALL CONTRIBUTION TO THAT BY CLOSING THE WARCRIMES MUSEUM IN HO CHI MINH CITY 9303020012 930302 TECHNOLOGY & HEALTH MICROTEST SHARES FALL BY 48 ON CONCERN OVER SALES OF PRODUCT PHOENIX MICROTEST INC'S SHARES TUMBLED MORE THAN 48 TO 750 YESTERDAY AFTER THE COMPANY DISCLOSED THAT SLOWERTHANEXPECTED SALES OF A NEW PRODUCT WOULD HURT FIRSTQUARTER EARNINGS THE COMPANY WHICH MAKES PRODUCTS THAT DIAGNOSE AND HELP RESOLVE COMPUTER CABLE PROBLEMS FIRST DISCLOSED ITS SALES PROBLEMS IN ITS 10K ANNUAL REPORT SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION FRIDAY IT GAVE DETAILS OF A NEW MARKETING EFFORT AND PRODUCT FEATURES IT PLANS TO ADD BUT THERE CAN BE NO ASSURANCE THAT THESE ACTIONS WILL INCREASE PRODUCT SALES TO ANTICIPATED LEVELS MICROTEST WARNED STEVE LEVY SENIOR TECHNOLOGY ANALYST AT HAMBRECHT & QUIST IN NEW YORK SLASHED HIS FIRSTQUARTER EARNINGS ESTIMATE TO FIVE CENTS A SHARE FROM 15 CENTS HE PREDICTED THAT REVENUE WOULD FALL 1 MILLION TO 15 MILLION SHORT OF HIS PREVIOUS 8 MILLION FORECAST CARL STRAIN MICROTEST'S VICE PRESIDENT OF OPERATIONS AND CHIEF FINANCIAL OFFICER SAID THE COMPANY WAS SURPRISED BY HOW MUCH THE COMPANY'S STOCK DROPPED WE ANTICIPATE THAT THIS IS A SHORTTERM PROBLEM AND WE ARE PUTTING THE PROGRAMS IN PLACE THAT ARE REQUIRED TO DEAL WITH IT HE SAID THE MAIN PRODUCT PROBLEM IS IN THE COMPANY'S NEW SCANNER MT310 LANMODEM THE COMPANY SAID THE PRODUCT'S INITIAL MARKETING EFFORT WAS MISGUIDED IN THAT IT RELIED HEAVILY ON AN EXISTING AWARENESS OF THE COMPANY THE NEW EFFORT INCLUDES MATERIALS MORE SUITABLE TO THE LESS TECHNICAL MARKET FOR WHICH THE MT310 IS TARGETED JON SHOMER PRESIDENT DECLINED TO PREDICT THE EFFECT OF THE CHANGES AND THE NEW MARKETING PROGRAMS ON FIRSTQUARTER RESULTS THE COMPANY CONTINUES TO SEE SIGNIFICANT GROWTH OPPORTUNITIES FOR ITS PRODUCTS AND ANTICIPATES SUSTAINED REVENUE GROWTH COMPARED TO 1992 HE SAID 9303020011 930302 LOCKHEED'S PURCHASE OF GENERAL DYNAMICS' FIGHTER UNIT IS CLOSED CALABASAS CALIF LOCKHEED CORP SAID IT COMPLETED ITS 152 BILLION ACQUISITION OF GENERAL DYNAMICS CORP'S FIGHTERPLANE BUSINESS LOCKHEED SAID AT THE MOMENT IT DOESN'T EXPECT STAFF REDUCTIONS BEYOND THOSE ANNOUNCED BY GENERAL DYNAMICS LAST JULY BEFORE LOCKHEED AGREED TO ACQUIRE THE FORT WORTH TEXAS FIGHTER OPERATION GENERAL DYNAMICS LAST SUMMER SAID IT PLANNED TO CUT ITS 21000EMPLOYEE WORK FORCE AT FORT WORTH BY ABOUT 5800 BY THE END OF 1994 A LOCKHEED SPOKESMAN YESTERDAY SAID THE FACILITY WHICH PRODUCES THE F16 AND DOES WORK ON LOCKHEED'S F22 ADVANCED TACTICAL FIGHTER PROGRAM NOW HAS ABOUT 19500 EMPLOYEES LOCKHEED HOWEVER SAID IN A STATEMENT THAT A TASK FORCE IS STUDYING THE BEST METHODS TO OPTIMIZE THE GROUP'S RESOURCES AND CHART THE MOST EFFICIENT PLAN FOR THE FUTURE THIS WILL ENABLE US TO EXTEND THE LIFE AND CAPABILITIES OF THE F16 BUT ALSO PROVIDE OUR CUSTOMER WITH A SUPERIOR AFFORDABLE NEW PRODUCT THE F22 SAID DANIEL M TELLEP LOCKHEED CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE FORMER GENERAL DYNAMICS TACTICAL MILITARY AIRCRAFT OPERATION IN FORT WORTH HAS BEEN RENAMED LOCKHEED FORT WORTH CO AND ASSIGNED TO LOCKHEED'S AERONAUTICAL SYSTEMS GROUP LOCKHEED ALSO NAMED GORDON R ENGLAND B EDWARD EWING AND DAIN M HANCOCK AS VICE PRESIDENTS OF THE PARENT THEY PREVIOUSLY LED GENERAL DYNAMICS' TACTICAL MILITARY AIRCRAFT BUSINESS AT LOCKHEED FORT WORTH CO MR ENGLAND 55 YEARS OLD WAS NAMED PRESIDENT MR EWING 48 WAS NAMED VICE PRESIDENT OF OPERATIONS AND MR HANCOCK 51 WAS NAMED VICE PRESIDENT OF F16 PROGRAMS 9303020010 930302 OTC FOCUS BLOODBATH IN BIOTECH DRAWS SOME BRAVE BUYERS TO AMGEN SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OUT IN THE RUBBLE OF THE BIOTECHNOLOGY INDUSTRY THERE'S A SIGN OF LIFE AMGEN BOUNCED BACK ALMOST 4 YESTERDAY IN HEAVY VOLUME BUYERS WERE HOPING THAT IF ANY BIOTECH STOCK CAN SURVIVE PRESIDENT CLINTON'S COSTCONTAINMENT PLANS IT WILL BE AMGEN THE LONGTIME BIOTECH INDUSTRY BELLWETHER AMGEN CLIMBED 1 3/8 TO 37 5/8 YESTERDAY ON AN ALMOST TWICENORMAL 42 MILLION SHARES MAKING IT THE DAY'S MOST ACTIVE NASDAQ STOCK AMGEN RECEIVED A MIDDAY BOOST WHEN GOLDMAN SACHS & CO UPGRADED THE STOCK TO MODERATE OUTPERFORMER FROM JUST A MARKET PERFORMER THE BROADER NASDAQ MARKET EASED LESS THAN 02 THERE WAS BLOOD IN THE STREET FOR BIOTECH STOCKS AND SO IT SEEMED LIKE A GREAT TIME TO BUY AMGEN SAYS ROGER MCNAMEE AT INTEGRAL CAPITAL PARTNERS IN PALO ALTO CALIF AMGEN IS THE MOST SUCCESSFUL BIOTECHNOLOGY COMPANY TO DATE THE STOCK FELL 20 THURSDAY EVEN THOUGH EARNINGS WILL ONLY BE OFF 10 TO 15 FROM WHAT THE STREET EXPECTED IT'S STILL A GREAT COMPANY SAYS MR MCNAMEE WHO BOUGHT SHARES AFTER THURSDAY'S 9 1/4POINT PLUNGE TO 37 MANY REMAIN SKEPTICAL AND INVESTORS AREN'T POURING INTO AMGEN AS FAST AS THEY RAN AWAY FROM IT LAST WEEK THURSDAY THE STOCK DIVED ON ENORMOUS VOLUME OF 22 MILLION SHARES STUNG BY AMGEN'S LATE WEDNESDAY DISCLOSURE THAT FIRSTQUARTER EARNINGS WOULD BE 10 TO 15 BELOW ANALYSTS' 60CENT ESTIMATES YESTERDAY AMGEN BACKED ANALYSTS' REVISED FIRSTQUARTER ESTIMATES OF 50 TO 54 CENTS A SHARE A RANGE THAT SUGGESTS A FIRSTQUARTER PROFIT INCREASE OF 15 TO 25 FROM THE 43 CENTS A SHARE AMGEN EARNED IN THE YEAREARLIER QUARTER ONE FAN OF THE STOCK IS EVAN STURZA EDITOR OF STURZA'S MEDICAL INVESTMENT LETTER WHO SAYS AMGEN NOW TRADES AT ABOUT 157 TIMES THE STREET'S 1993 EARNINGS ESTIMATES OF ABOUT 240 A SHARE THE STOCK IS AN EASY 41 OR 42 IN THE SHORT TERM AND LONGTERM I AM STILL BULLISH ON IT MR STURZA SAYS I DON'T THINK NEUPOGEN HAS PENETRATED HALF THE MARKET AMGEN IS A RELATIVELY NEW COMPANY AND IT WILL HAVE 30 GROWTH FOR THE NEXT FIVE YEARS INVESTORS WILL BE REWARDED THE BIG QUESTION AMONG ANALYSTS AND INVESTORS IS WAS THE DROP IN SALES OF AMGEN'S MAIN DRUG NEUPOGEN A GLITCH OR HAS THE DRUG REACHED ITS LIMIT THERE'S NO SHORTAGE OF SKEPTICS AFTER CONDUCTING A FRIDAY TELEPHONE SURVEY OF 40 LARGE HOSPITALS AND CANCER CENTERS THROUGHOUT THE US MERRILL LYNCH & CO ANALYST STUART WEISBROD YESTERDAY LOWERED HIS SHAREEARNINGS ESTIMATE FOR 1993 TO 235 WHICH WOULD BE ONLY 124 ABOVE 1992'S PROFIT OF ABOUT 209 A SHARE BEFORE A ONETIME GAIN IN HIS REPORT RELEASED YESTERDAY MR WEISBROD CITED A TREND TOWARDS LESSENING THE USE OF NEUPOGEN AND A BELIEF THAT THE DRUG HAS SATURATED THE CANCER CHEMOTHERAPY MARKET LAST WEEK HE DOWNGRADED THE STOCK TO NEUTRAL FROM ABOVEAVERAGE JOINING THE CHORUS OF DISENCHANTED ANALYSTS WHO FUELED THURSDAY'S SWOON INDEED MANY ANALYSTS ARE TREATING AMGEN LIKE AN OLD ESTABLISHED PHARMACEUTICAL COMPANY THAT DOESN'T HAVE ANY MORE ROOM TO GROW THEY ARE WORRIED ABOUT AMGEN'S DISCLOSURE THAT SALES OF ITS NEUPOGEN A WHITE BLOODCELLSTIMULATING DRUG FOR USE IN CANCER CHEMOTHERAPY WEAKENED EARLY IN THE FIRST QUARTER BUT BULLS SAY INVESTORS MIGHT BE WISE TO TURN THEIR BACKS ON THE ANALYSTS WHO HAVE CUT THIS YEAR'S CONSENSUS PROFIT ESTIMATE TO ABOUT 240 A SHARE FROM 265 WHILE REDUCING 1994'S CONSENSUS TO 275 FROM 315 TRADERS SAID YESTERDAY THAT THEY BELIEVE AMGEN STOCK HAS RECENTLY DRAWN A NIBBLE FROM THE BOSTON MUTUALFUND GIANT FIDELITY INVESTMENTS FIDELITY WOULDN'T COMMENT OTHER THAN TO SUGGEST THAT THE STREET IS GREATLY OVERESTIMATING THE AMOUNT OF ITS RECENT PURCHASES IN THE BROADER MARKET THE NASDAQ COMPOSITE INDEX DROPPED 126 OR 019 TO 66951 DECLINERS OUTNUMBERED ADVANCERS 13111281 ON TOTAL VOLUME OF 186 MILLION SHARES DOWN FROM FRIDAY'S 2173 MILLION AMGEN'S SHARES HAVE REBOUNDED MORE STRONGLY THAN OTHER BIOTECH STOCKS A WEEK AGO MONDAY SYNERGEN GOT CLOBBERED WHEN IT ANNOUNCED WEAKERTHANEXPECTED TEST RESULTS OF ITS DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION YESTERDAY SYNERGEN'S STOCK EDGED UP 1/4 TO 15 1/2 BUT IT IS STILL DOWN 63 FROM BEFORE ITS BAD NEWS SHARP SELLING IN TRUCKING STOCK ROADWAY SERVICES AND LOSSES IN SOME BIG TECHNOLOGY ISSUES HELPED TIP THE NASDAQ MARKET INTO NEGATIVE TERRITORY ROADWAY PLUNGED 6 3/4 TO 63 1/4 AFTER THE AKRON OHIO CONCERN PROJECTED DISAPPOINTING EARNINGS SOME COMPUTER AND SOFTWARE STOCKS CONTINUED TO ERODE DELL COMPUTER DROPPED 1 5/8 TO 30 1/2 WHILE MICROSOFT FELL 1 7/8 TO 81 1/2 ROADWAY FELL AFTER THE COMPANY SAID ITS EARNINGS FROM OPERATIONS THIS YEAR PROBABLY WON'T INCREASE FROM THEIR YEARAGO LEVEL IT CITED INCREASED RESEARCH AND DEVELOPMENT EXPENSES MEANWHILE THE COMPANY SAID FIRSTQUARTER EARNINGS WILL BE SLICED BY A CHARGE TIED TO AN ACCOUNTING CHANGE FRIDAY'S EXPLOSION AT THE WORLD TRADE CENTER RATTLED NEW YORK'S FINANCIAL DISTRICT BUT BOOSTED SHARES OF SOME STOCKS THAT PROVIDE EQUIPMENT AND SERVICES BARRINGER TECHNOLOGIES WHICH SUPPLIES EXPLOSIVESDETECTION PRODUCTS ROSE 3/8 TO 3 5/8 PINKERTON'S WHICH PROVIDES SECURITY SERVICES JUMPED 3/4 TO 20 1/4 SCIOS NOVA EASED 3/8 TO 6 3/8 AFTER A FOOD AND DRUG ADMINISTRATION PANEL VOTED AGAINST RECOMMENDING APPROVAL OF THE MOUNTAIN VIEW CALIF COMPANY'S TREATMENT FOR A TYPE OF LEUKEMIA THE DECISION ISN'T BINDING BUT THE AGENCY USUALLY FOLLOWS THE ADVICE OF ITS COMMITTEES LAWSON PRODUCTS GAINED 3/4 TO 29 1/4 THE DES PLAINES ILL CORPORATION SAID ITS EARNINGS ROSE TO 31 CENTS A SHARE IN THE FOURTH QUARTER UP FROM 27 CENTS A YEAR AGO SALES EDGED UP TO 459 MILLION FROM 447 MILLION SHARES OF MANY INSURERS GAINED GROUND LED BY MERCURY GENERAL WHICH GAINED 2 1/4 TO 34 5/8 A CALIFORNIA COURT RULED THAT THE STATE'S PROPOSITION 103 WHICH LIMITS THE RATE INCREASES OF AUTOMOBILE INSURANCE PROVIDERS IS UNCONSTITUTIONAL MICROTEST PLUNGED 7 TO 7 1/2 AFTER HAMBRECHT & QUIST ANALYST STEVE LEVY HALVED HIS FIRSTQUARTER EARNINGS ESTIMATE FOR THE COMPANY TO FIVE CENTS A SHARE IN THE YEARAGO PERIOD THE COMPANY EARNED 12 CENTS A SHARE MR LEVY CITED LOWERTHANEXPECTED SALES OF A NEW MICROTEST PRODUCT THAT IS USED IN DIAGNOSING PROBLEMS WITH COMPUTER NETWORKS PRESIDENT RIVERBOAT GAINED 2 TO 43 OPPENHEIMER & CO ANALYST STEVEN EISENBERG RAISED HIS ESTIMATE FOR THE DAVENPORT IOWA CASINO COMPANY'S FISCAL FOURTHQUARTER EARNINGS HE RAISED HIS FORECAST TO 28 CENTS A SHARE FROM A PREVIOUS PROJECTION OF SEVEN CENTS THE COMPANY HAD A LOSS OF 17 CENTS A SHARE THE YEAR EARLIER THE QUARTER ENDED LAST MONTH HYDE ATHLETIC ADVANCED 1 7/8 TO 19 1/4 THE COMPANY REPORTED FOURTHQUARTER PROFIT OF 59 CENTS A SHARE REBOUNDING FROM A YEARAGO LOSS OF 14 CENTS A SHARE REVENUE OF THE PEABODY MASS COMPANY JUMPED TO 273 MILLION FROM 17 MILLION JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO SAID NASDAQ INVESTORS' SENTIMENT WAS PULLED IN TWO DIRECTIONS RAISING SPIRITS HE SAID WAS A RALLY IN BONDS DEPRESSING THE ATMOSPHERE WERE THE BIG BOARD'S LOSSES DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9303020009 930302 ALEXANDER & BALDWIN AGREES IN PRINCIPLE TO BUY MOST OF C&H HONOLULU ALEXANDER & BALDWIN INC SAID IT AGREED IN PRINCIPLE TO ACQUIRE MOST OF THE INTERESTS IN CALIFORNIA & HAWAIIAN SUGAR CO OR C&H THAT IT DOESN'T ALREADY OWN ALEXANDER & BALDWIN WHICH HAS DIVERSE BUSINESSES IN AGRICULTURE REAL ESTATE AND TRANSPORTATION WOULDN'T SAY HOW MUCH IT PLANS TO PAY FOR THE INTEREST IN 87YEAROLD C&H A MAJOR MARKETER OF BRANDED SUGAR IN THE US C&H IS A COOPERATIVE OWNED BY HAWAII'S SUGAR CANE GROWERS OF WHICH ALEXANDER & BALDWIN OWNS ABOUT A 28 SHARE ALEXANDER & BALDWIN WILL BE ABLE TO OPERATE C&H MORE EFFICIENTLY THAN THE COOPERATIVE DID ANALYSTS SAID AND THE DEAL WILL GIVE CASH FOR GROWERS TO PLOW BACK INTO THEIR OPERATIONS IT'S A POSITIVE FOR THE WHOLE HAWAIIAN SUGAR INDUSTRY AND FOR ALEXANDER AND BALDWIN SAID ANALYST DAVID LOEB OF OPPENHEIMER & CO WHO ADDED THAT THE PURCHASE PRICE COULD RANGE FROM 30 MILLION TO 100 MILLION WHEN THEY LOOK FOR GROWTH OPPORTUNITIES THEY LOOK FOR RELATED BUSINESSES AND THIS IS A BUSINESS THEY'VE BEEN INVOLVED WITH SINCE INCEPTION ALEXANDER & BALDWIN SAID THAT MOST OF C&H'S OWNERS HAVE SIGNED LETTERS OF INTENT AGREEING TO THE ACQUISITION AND THAT THE COMPANY IS STILL NEGOTIATING WITH SEVERAL SMALL GROWERS WHO OWN ABOUT 2 OF THE COOPERATIVE C&H'S OTHER BIG OWNERS INCLUDE CONCERNS SUCH AS C BREWER & CO AND DOLE FOOD CO UNDER THE AGREEMENT ALEXANDER & BALDWIN WOULD ACQUIRE THE REFINERIES LAND AND OTHER FACILITIES OWNED BY C&H WHICH HAD 1992 SALES OF 446 MILLION C&H WOULD ALSO CONTINUE TO PURCHASE ALL HAWAIIPRODUCED RAW SUGAR ALEXANDER & BALDWIN WHOSE REVENUE LAST YEAR WAS 754 MILLION SAID IT EXPECTS THE ACQUISITION TO BE COMPLETED BY JULY 31 9303020008 930302 REVIEW & OUTLOOK EDITORIAL THE CLINTON STIMULUS WORKS WE HAVE FROM TIME TO TIME EXPRESSED DOUBT ABOUT THE CLINTON PLAN TO TAX OUR WAY TO PROSPERITY BUT NEVER LET IT BE SAID WE FAIL TO GIVE CREDIT WHEN IT'S DUE THE CLINTON PROPOSALS DID AN EXCELLENT JOB OF STIMULATING THE ECONOMY FOR THE FOURTH QUARTER OF 1992 IV92 IS QUICKLY BECOMING LEGENDARY GDP WENT UP 48 THE BRISKEST PACE IN FIVE YEARS AND A FULL PERCENTAGE POINT ABOVE THE INITIAL ESTIMATES MUCH OF THE GAIN CAME IN DECEMBER ALONE WHEN PERSONAL INCOME JUMPED A FULL 1 AND AN 08 GAIN IN CONSUMER CONFIDENCE SPREAD CHRISTMAS CHEER IN RETAILING HOME SALES MEANWHILE REGISTERED THE BEST MONTH SINCE 1979 CONSUMER CONFIDENCE ROSE MORE THAN 12 POINTS IN DECEMBER SOME MAY DOUBT THAT THIS BURST OF PROSPERITY IS DUE TO MR CLINTON SINCE HE HADN'T EVEN TAKEN OFFICE IN THE FOURTH QUARTER AND FOR THAT MATTER HIS TAX POLICIES ARE EVEN TODAY STILL IN THE TALKING STAGE BUT TO ERASE ANY SUCH DOUBT ALL YOU HAVE TO DO IS TALK TO MICHAEL EISNER THE WALT DISNEY CO CHAIRMAN CASHED IN HIS STOCK OPTIONS BETWEEN THE CLINTON ELECTION VICTORY AND THE 1993 TAX YEAR HIS PLAN WAS TO REALIZE HIS GAINS BEFORE MR CLINTON COULD RAISE TAXES AND ALSO TO ALLOW HIS EMPLOYER TO AVOID OPTIONS CHARGES ARISING FROM ACCOUNTINGRULE CHANGES DISNEY PRESIDENT FRANK WELLS DID THE SAME THING AND THE TWO OF THEM ADDED 187 MILLION TO DECEMBER INCOME FIGURES THROUGHOUT CORPORATE AMERICA EXECUTIVES LUCKY ENOUGH TO HAVE GAINS ON THEIR OPTIONS WERE DOING THE SAME THING ALONG WALL STREET BONUSES WERE PAID IN DECEMBER RATHER THAN JANUARY HAPPY HOLIDAYS AND APRES MOI LE DELUGE SURE ENOUGH FIGURES FOR I93 ARE COMING IN A BIT ANEMIC PERSONAL INCOME AND CONSUMER SPENDING MANAGED TO EKE OUT GAINS THOUGH AT ONLY HALF THE DECEMBER RATE ON THE STRENGTH OF A COSTOFLIVING INCREASE FOR SOCIAL SECURITY RECIPIENTS AND A FEDERAL PAY HIKE THE LAST FOR A WHILE ACCORDING TO CLINTON PLANS BUT CONSTRUCTION DECLINED FOR THE FIRST TIME IN FIVE MONTHS AND HOME SALES DECLINED 64 THE FIRST DROP SINCE A 12 DIP IN AUGUST CONSUMER CONFIDENCE LEVELED OFF IN JANUARY AND DIPPED TO 685 IN FEBRUARY IF MR CLINTON GETS CREDIT FOR THE LAST QUARTER OF THE BUSH PRESIDENCY HE HAS TO TAKE RESPONSIBILITY FOR THE FIRST QUARTER OF HIS OWN HIS ECONOMIC SAGES HAVE NOTICED THAT EVEN THE BRISK ACTIVITY OF IV92 DIDN'T CREATE VERY MANY JOBS WHICH THEY SEEM TO THINK IS AN ARGUMENT FOR THE MORESPENDING SIDE OF THEIR FISCAL STEW BUT FEW JOBS ARE EVER GOING TO BE CREATED BY WHAT EVERYONE WITH EYES CAN SEE GOING ON THE SHIFTING OF INCOME FROM ONE PLACE TO ANOTHER TO AVOID THE TAXES MR CLINTON HAS THREATENED MAKE NO MISTAKE TOO THIS IS NOT A ONETIME BLIP AS MR CLINTON TAKES OFFICE THE AMERICAN TAXPAYER ESPECIALLY THE WEALTHY ONE WITH LOTS OF LAWYERS AND ACCOUNTANTS HAS UNTAPPED INGENUITY IN SHIFTING INCOME TO AVOID TAXES DECISIONS ON WHEN TO REALIZE GAINS ON OPTIONS IS A RELATIVELY UNIMAGINATIVE ONE AND A RELATIVELY BENIGN ONE COMPARED WITH THE ALTERNATIVE OF WORKING LESS AND PRODUCING LESS WE LEARNED DURING THE 1980S THAT WHEN TAX RATES ARE REASONABLE THE WEALTHY WILL EXPOSE MORE OF THEIR INCOME TO TAXES SO THE TOP BRACKETS OF THE INCOME DISTRIBUTION PAID A HIGHER PROPORTION OF THE INCOME TAX AT THE END OF THE 1980S THAN THE BEGINNING THOUGH THEY PAID A SMALLER SHARE OF THEIR REPORTED INCOME MR CLINTON IN THE NAME OF FAIRNESS AND THE MIDDLE CLASS HE SAYS PROPOSES TO REVERSE THIS PROCESS THE AMERICAN ECONOMY IS A STURDY BEAST AND CAN ABSORB A LOT OF PUNISHMENT BUT INCENTIVES DO MATTER AS WE SEE SO CLEARLY IN IV92 AND I93 AND THIS SAME DEPRESSIVE EFFECT WILL BE IN EVIDENCE SO LONG AS THE CLINTON TAX GRAB IS ON THE TABLE OR WORSE YET ENACTED 9303020007 930302 BUSINESS BRIEF MACY'S PLANS TO CLOSE ADDITIONAL 11 STORES WITH LAYOFFS OF 1500 NEW YORK AS PART OF ITS PLAN TO SHUT DOWN STORE LOCATIONS WITH LOW GROWTH POTENTIAL AND IMPROVE OVERALL PROFITABILITY RH MACY & CO SAID IT WILL CLOSE 11 MORE STORES AND LAY OFF ABOUT 1500 EMPLOYEES THE STORE CLOSINGS WHICH WILL TAKE PLACE OVER THE NEXT FEW MONTHS WILL LEAVE MACY'S WITH A TOTAL OF 204 STORES TO COVER COSTS ASSOCIATED WITH THE CLOSINGS THE COMPANY SAID IT WILL TAKE A ONETIME CHARGE AGAINST ITS EARNINGS IN ITS FISCAL THIRD QUARTER ENDING APRIL 30 SINCE FILING FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN JANUARY 1992 MACY'S WILL HAVE CLOSED 66 STORES INCLUDING THE LATEST 11 SEPARATELY THE NEW YORK RETAILER SAID IT MET ALL OF ITS BANK COVENANTS FOR ITS FISCAL SECOND QUARTER ENDED JAN 30 AND ENDED THE QUARTER WITH 100 MILLION MORE IN CASH THAN IT HAD PLANNED THE COMPANY SAID IT DOESN'T EXPECT TO USE ITS WORKING CAPITAL BANK LINES AGAIN BEFORE LATE THIS MONTH TWO MONTHS LATER THAN IT ORIGINALLY PLANNED THE COMPANY WILL CLOSE MACY'S DEPARTMENT STORES IN NEW HAVEN CONN AND MORRISTOWN NJ AND CLOSE BULLOCK'S DEPARTMENT STORES IN DOWNTOWN LOS ANGELES LA MESA CALIF AND LAKEWOOD CALIF TOGETHER THE DEPARTMENT STORES HAD SALES OF ABOUT 108 MILLION OR 17 OF THE COMPANY'S 65 BILLION SALES IN FISCAL 1992 MACY'S ALSO WILL CLOSE SIX OF ITS 19 I MAGNIN SPECIALTY STORES WHICH HAD COMBINED SALES OF ABOUT 66 MILLION OR 1 OF THE COMPANY'S SALES THE MAGNIN STORES TO BE CLOSED ARE IN SEATTLE LOS ANGELES SHERMAN OAKS CALIF SAN MATEO CALIF SANTA BARBARA CALIF AND LA JOLLA CALIF 9303020006 930302 BUSINESS WORLD GETTY THINKS THERE'S A BUCK IN MUTUAL FUNDS BY TIM W FERGUSON SAN FRANCISCO GORDON GETTY IS PREOCCUPIED WITH MONEY BUT NOT IN QUITE THE WAY YOU'D THINK AN INHERITED FORTUNE PERMITS HIM TO INDULGE HOBBIES RANGING FROM MUSIC TO SOCIOBIOLOGY ONE OF THEM IS TO REPLACE THE BANKING SYSTEM HIS VEHICLE IS THE MUTUAL FUND HE HOPES TO LINK THE MANY FORMS OF THIS FINANCIAL FAVORITE OF OUR TIMES INTO ONE OR MORE CENTRAL FUNDS THEY IN TURN WOULD CLEAR PAYMENTS IN THE SAME WAY THE FEDERAL RESERVE DOES FOR BANKS DEBITS FROM MUTUALFUND ACCOUNTS WOULD BE EXCHANGED WITHOUT THE NEED AND COST OF REDEEMING THE UNDERLYING ASSETS SHARES WOULD EFFECTIVELY BE MONEY AND ULTIMATELY BE ACCEPTED AS SUCH THROUGHOUT THE ECONOMY THE RESULT A PARALLEL AND EVENTUALLY SUBSTITUTE FORM OF BANKING OUTSIDE THE CONTROL OF MONETARY AUTHORITIES THE BEGINNINGS OF MR GETTY'S VISION EXIST TODAY ACCESS TO MUTUAL FUNDS IS VIRTUALLY IMMEDIATE LOOSENING THE OFFICIAL GRIP ON THE MONEY SUPPLY BY DRAWING CHECKS ON A FUND AND USING PLASTIC MANY AMERICANS NO LONGER MUST DEAL WITH A BANK BUT INDIRECTLY NEARLY EVERYONE DOES BECAUSE IN THE END ACCOUNTS MUST BE SQUARED WITHIN THE FED SYSTEM THAT IS WHAT MR GETTY IS OUT TO CHANGE HIS IDEA ISN'T KEYED TO DISSATISFACTION WITH THE CURRENT CENTRAL BANK BUT TO WHAT HE SEES AS THE INHERENT INSTABILITY OF THE CENTURIESOLD WAY WE BANK IT'S A SEESAW BETWEEN INFLATION AND CONTRACTION POSSESSORS OF WEALTH HE OBSERVES ARBITRAGE BETWEEN THE COST OF HOLDING MONEY AND THE TRANSACTION COST OF BARTER IF YOU DON'T HAVE MONEY AND THEY WILL HOLD WHATEVER AMOUNT OF MONEY MINIMIZES THOSE COSTS THAT MAY NOT BE THE AMOUNT THAT THE FED WANTS MR GETTY SEEKS FERTILE MONEY INSTEAD IT WOULD GROW WITH THE ECONOMY LINKED THROUGH AN APPROPRIATE COMBINATION OF ASSETS MUCH LIKE A DIVERSIFIED INVESTMENT PORTFOLIO HENCE YOU WOULDN'T MIND HOLDING THESE DOLLARS MORE COULD BE IN CIRCULATION INCREASING LIQUIDITY BUT BY DEFINITION THERE'D BE NO INFLATION BECAUSE THE MONEY WOULDN'T BE CHASING TOO FEW GOODS FRACTIONALRESERVE BANKING GOES BY THE WAYSIDE IN THE GETTY SCHEME AND WITH IT THE LEVERAGE THAT MAKES BANKS SO VULNERABLE AND PURPORTEDLY IN NEED OF TAXPAYERBACKED DEPOSIT INSURANCE THIS BACKSTOP WOULD BE OBVIATED BECAUSE ALL ACCOUNTS WOULD BE FULLY RESERVED AND THERE'D BE NO DEPOSITORS JUST INVESTORS IN THE MUTUALFUND DOLLARS A RUN WOULD NOT BE RATIONAL BECAUSE UNDERLYING ASSETS WOULD BE INSTANTLY MARKED TO MARKET ALLOWING LITTLE GAIN FROM BEATING THE CROWD IN A GENERALIZED DOWNTURN MOREOVER IF MR GETTY AND OTHERS WHO BELIEVE THE PRODUCTIVE ASSETS OF AN ECONOMY TO BE THE STEADIEST SOURCES OF VALUE ARE CORRECT WHERE ELSE WOULD ANYONE PLACE WEALTH THAT'S NOT TO SUGGEST A PURE EQUITY PLAY HOWEVER SITTING IN HIS HIDEAWAY STUDY OVERLOOKING THE GOLDEN GATE THE BILLIONAIRE ADMITS THAT HIS OWN RESOURCES HAVE BEEN MOSTLY IN BONDS IN RECENT YEARS BECAUSE EQUITIES SEEMED OVERPRICED HE CONCEDES A REPRESENTATIVE SHARE OF THE CENTRAL FUND TO DEBT INSTRUMENTS ALTHOUGH HE'D PREFER THEM ONLY IN THEIR PROPORTION OF THE PRIVATE ECONOMY AND NOT THE PREDOMINANCE THEY ENJOY IN THE OVERALL FINANCIAL UNIVERSE BY VIRTUE OF GOVERNMENT BORROWING MR GETTY SAYS HE CAME TO HIS IDEAS INDEPENDENTLY BUT NOT EXCLUSIVELY EUGENE FAMA OF THE UNIVERSITY OF CHICAGO FISCHER BLACK OF GOLDMAN SACHS AND OTHERS HAVE CHARTED THESE WATERS MR GETTY HAS CORRESPONDED WITH CHARLES GOODHART OF THE LONDON SCHOOL OF ECONOMICS AND A FEW OTHER SCHOLARS ROBERT LITAN OF THE BROOKINGS INSTITUTION DISCUSSED A GETTY PAPER THERE RECENTLY THE OIL HEIR ALSO HAS AIRED HIS IDEAS BEFORE TWO RECENT FORUMS OF THE CATO INSTITUTE IN PROPOSING MONEY BACKED BY THE PRIVATE SECTOR HE IS IN SYNC WITH COMPETINGCURRENCY NOTIONS OF THE LATE FRIEDRICH HAYEK THE LIBERTARIAN NOBELIST MORE IMPORTANT FROM A PRACTICAL STANDPOINT MR GETTY SAYS HE'S CONTACTING MAJOR PLAYERS IN THE MUTUALFUND INDUSTRY ABOUT A NEXUS THAT COULD BECOME A CENTRAL FUND HE WOULD CONSIDER PUTTING IN NO LESS THAN 20 MILLION OF SEED CAPITAL FOR SUCH A VENTURE WHILE ALSO STARTING AN INVESTOR FUND BASED ON HIS PERSONAL PORTFOLIO HE SAYS THE CONCEPT IS COMING GETTY OR NO GETTY THE BIGGEST OBSTACLE HE FINDS IS MUTUALFUND REGULATIONS THAT SERVE ONLY TO LIMIT THE ABILITY TO COMPETE WITH BANKS MR GETTY WOULD LIMIT GOVERNMENT'S ROLE TO PROMOTING DISCLOSURE AND PROSCRIBING FRAUD NOW WE READ IN THE PAPERS THAT THOSE WHO REGULATE THE MUTUAL FUNDS ARE GOING TO NEED MORE STAFF BECAUSE THERE'S BEEN SUCH GROWTH IN THE FUNDS TO 17 TRILLION DOUBLE FIVE YEARS AGO WELL WE MARKET LIBERALS LOOK AT IT THE OTHER WAY INSTEAD OF INCREASING THE STAFF WHY NOT GET RID OF THE REGULATIONS GOOD LUCK ESPECIALLY IF MUTUAL FUNDS ARE TO BE A MORE DIRECT THREAT TO THE POWERFUL BANK LOBBY WHOSE FINE HAND MR GETTY SEES IN THE EXISTING CURBS THE SAME GOES FOR SLICING DEPOSITINSURANCE GUARANTEES ALTHOUGH THEY ARE BOTH A BOON AND AN EXPENSE FOR BANKS A LESS REVOLUTIONARY ALTERNATIVE SOCALLED NARROW BANKS COULD ACHIEVE SOME OF THE GETTY AIMS HE SUGGESTS BANKS BE MUTUALIZED EVEN HIS ACADEMIC SYMPATHIZERS ADMIT TO OTHER BARRIERS FOR ONE A LOT OF PEOPLE STILL DON'T UNDERSTAND THAT A BALANCED PORTFOLIO IS OVER ANY REASONABLE STRETCH OF TIME MONEY IN THE BANK TOO MANY PEOPLE REMEMBER OCTOBER 1987 OR FORGET THAT WHEN STOCKS PLUNGED BONDS SOARED SO CONFIDENCE WILL BE A PROBLEM MR GETTY WHO DOESN'T EXACTLY BUY GROCERIES AND EVEN SEEMED PUZZLED BY A CATO EVENT QUERY ON MERRILL LYNCH'S CASH MANAGEMENT ACCOUNTS MAY NOT APPREHEND THE UNTUTORED MASSES ON THE OTHER HAND MILLIONS AT THE BOTTOM LEVELS OF THE ECONOMY DON'T USE COMMERCIAL BANKS EITHER THE GETTY PLAN HAS A MECHANISM FOR COUNTERING CONTRACTIONS BUT THE BODY POLITIC MAY CLING TO THE LIQUIDITYINDUCING POWERS OF THE FED DISRUPTIVE AS THOSE CAN BE OF STABLE MONEY ALSO IT'S NOT CLEAR WHO WOULD FURNISH CAPITAL TO THE TRADITIONAL LOAN CUSTOMERS OF BANKS SUCH AS SMALL BUSINESS SECURITIZATION OF FINANCECOMPANY LOANS IS IN ITS INFANCY AND WHAT OF THE GLOBAL ECONOMY MR GETTY WANTS TO ENCOURAGE FORMATION OF CENTRAL FUNDS IN CHAOTIC COUNTRIES SUCH AS RUSSIA THAT ARE ANCHORED TO A BASKET OF WORLDWIDE FUNDS AND THUS LESS SUBJECT TO THE VAGARIES OF AN INTERNAL ECONOMY AS FOR CURRENCY FLUCTUATIONS I THINK THE VARIOUS CENTRAL FUNDS SHOULD GET TOGETHER TO STABILIZE THE DOLLAR' AMONGST THEM I KIND OF LIKE A WORLD IN WHICH THERE'S ONLY ONE DOLLAR ALTHOUGH HE SEES NO REAL LOSERS FROM HIS PLAN MR GETTY REALIZES HE'S UP AGAINST INERTIA IF YOU WANT TO GIVE EVERYBODY A DOLLAR EACH THEY'LL STILL RESIST YOU THEY RESIST NEW IDEAS HE SAYS BUT HE ISN'T IMPATIENT AS I GO THROUGH THE LOGIC OF THE EXISTING SYSTEM I CAN GET A LITTLE SCARED BUT IT'S WORKED PRETTY WELL I DON'T HAVE A SENSE OF PANIC WE CAN TAKE OUR TIME 9303020005 930302 CHIRON CORP POSTS LOSS OF 499 MILLION FOR FOURTH QUARTER EMERYVILLE CALIF CHIRON CORP POSTED A WIDERTHANEXPECTED FOURTHQUARTER NET LOSS CITING HIGH COSTS RELATED TO STREAMLINING ITS OPERATIONS FOR THE QUARTER CHIRON HAD A NET LOSS OF 499 MILLION OR 159 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 4424 MILLION OR 1989 A SHARE WHICH WAS PRIMARILY DUE TO A ONETIME 426 MILLION CHARGE FOR THE ACQUISITION OF CETUS CORP REVENUE GREW 47 TO 613 MILLION FROM 417 MILLION THE LOW END OF ANALYSTS' ESTIMATES WAS FOR A NET LOSS OF ABOUT 30 CENTS A SHARE WHICH DID NOT FULLY ACCOUNT FOR MANY OF THE CHARGES AND EXPENSES THAT CHIRON PREVIOUSLY WARNED WOULD OCCUR YESTERDAY SOME ANALYSTS PREDICTED THE WIDERTHANEXPECTED LOSS WOULD HAVE LITTLE EFFECT ON CHIRON'S STOCK IN TRADING TODAY BECAUSE THEY SAID THE COMPANY HAS MADE SEVERAL CHANGES SUCH AS OPERATION CONSOLIDATIONS AND INVENTORY WRITEDOWNS AIMED AT ACHIEVING PROFITABILITY CHIRON ANNOUNCED ITS EARNINGS AFTER THE MARKET CLOSED IN NATIONAL OVERTHECOUNTER TRADING CHIRON CLOSED AT 4875 A SHARE DOWN 75 CENTS A CHIRON SPOKESMAN DECLINED TO ESTIMATE FIRST QUARTER EARNINGS BUT SAID THE COMPANY HAD PREVIOUSLY ESTIMATED NET INCOME FOR ALL OF 1993 OF 30 CENTS TO 60 CENTS A SHARE DURING THE QUARTER THE BIOTECHNOLOGY COMPANY SAID OPERATING EXPENSES SWELLED 73 TO 1081 MILLION COMPARED WITH OPERATING EXPENSES WITHOUT THE ONETIME CHARGE IN THE YEAREARLIER QUARTER THE INCREASED COSTS RESULTED FROM AMONG OTHER THINGS THE CLOSING OR CONSOLIDATION OF VARIOUS OPERATIONS INVENTORY WRITEDOWNS AND BROADENED MARKETING EFFORTS REVENUE GROWTH WAS BOOSTED BY INCREASED SALES OF ITS ONCOLOGY AND OPHTHALMIC PRODUCTS THE COMPANY SAID 9303020004 930302 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEB 26 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BALTIMORE COUNTY MD WILL REDEEM ON MARCH 23 1993 ITS 115 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1982 DUE DEC 1 2002 MELLON BANK PHILADELPHIA IS PAYING AGENT BUCYRUS OHIO WILL REDEEM ON APRIL 1 1993 ITS 12 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1982 DUE APRIL 1 2007 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE CHULA VISTA REDEVELOPMENT AGENCY WILL REDEEM ON APRIL 1 1993 210000 PRINCIPAL AMOUNT OF ITS 8 TAX ALLOCATION BONDS SERIES 1979 FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS TRUSTEE DADE COUNTY FLA EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON APRIL 1 1993 200000 PRICIPAL AMOUNT OF ITS 5 7/8 REVENUE BONDS SERIES 1978 AND 500000 OF ITS 10 REVENUE BONDS SERIES 1981 BOTH DUE APRIL 1 1996 BARNETT BANKS TRUST CO NEW YORK IS TRUSTEE DADE COUNTY FLA WILL REDEEM ON APRIL 1 1993 ITS SEAPORT REVENUE BONDS SERIES 1978 DUE OCTOBER 1 1993 CHEMICAL BANK NEW YORK IS PAYING AGENT DELAWARE COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON APRIL 1 1993 100000 PRINCIPAL AMOUNT OF ITS 75 COMMERCIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS SERIES A 1977 DUE APRIL 1 1997 MELLON BANK PHILADELPHIA IS PAYING AGENT DURHAM & WAKE COUNTIES NC SPECIAL AIRPORT DISTRICT WILL REDEEM ON APRIL 1 1993 THE FOLLOWING GENERAL OBLIGATION AERONAUTICAL FACILITIES BONDS DUE APRIL 1 OF THE INDICATED YEAR 78 DUE 199495 AND 79 DUE 19962003 FIRST UNION NATIONAL BANK OF NC IS PAYING AGENT HAWTHORNE CALIF PARKING AUTHORITY WILL REDEEM ON APRIL 15 1993 205000 PRINCIPAL AMOUNT OF ITS 6 1/4 CALIFORNIA LEASE REVENUE BONDS SERIES A DUE APRIL 15 2002 FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS TRUSTEE LIBERTY MO WILL REDEEM ON APRIL 1 1993 THE FOLLOWING COMBINED WATERWORKS AND SEWERAGE SYSTEM REVENUE BONDS SERIES 1979 DUE OCT 1 OF THE INDICATED YEAR 63 DUE 199397 64 DUE 199899 AND 65 DUE 200004 MISSOURI BRIDGE BANK KANSAS CITY MO IS TRUSTEE LORDSBURG NM WILL REDEEM ON APRIL 1 1993 ITS POLLUTION CONTROL REVENUE BONDS SERIES A DUE 2003 IBJ SCHRODER BANK & TRUST CO NEW YORK IS TRUSTEE MONTGOMERY COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH 23 1993 ITS 10 1/2 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1983 DUE MARCH 1 2003 MELLON BANK PHILADELPHIA IS PAYING AGENT MUSKOGEE COUNTY OKLA HOME FINANCE AUTHORITY WILL REDEEM ON APRIL 1 1993 250000 PRINCIPAL AMOUNT OF THE FOLLOWING SINGLE FAMILY MORTGAGE REVENUE BONDS 1980 SERIES A 10 1/4 BEARER BONDS DUE 199497 AND 9 3/8 REGISTERED BONDS DUE OCT 1 2012 BANK OF OKLAHOMA IS TRUSTEE NORTH CAROLINA MEDICAL CARE COMMISSION WILL REDEEM ON APRIL 1 1993 THE FOLLOWING HOSPITAL REVENUE BONDS SERIES A DUE JUNE 1 OF THE INDICATED YEAR 6 SERIAL BONDS DUE 1993 AND 6 1/2 TERM BONDS DUE 2005 NATIONSBANK OF NC IS TRUSTEE NORTH ANDOVER MASS WILL REDEEM ON MARCH 26 1993 ITS 10 1/8 RESOURCE RECOVERY REVENUE BONDS DUE MARCH 1 2002 AND 2006 STATE STREET BANK & TRUST CO BOSTON IS TRUSTEE PITTSBURGH PA STADIUM AUTHORITY WILL REDEEM ON APRIL 1 1993 715000 PRINCIPAL AMOUNT OF ITS 6 1/2 STADIUM BONDS SERIES A DUE APRIL 1 2011 MELLON BANK PITTSBURGH IS PAYING AGENT SEDGEWICK COUNTY KAN WILL REDEEM ON APRIL 1 1993 1505000 PRINCIPAL AMOUNT OF ITS 1980 SERIES A SINGLE FAMILY MORTGAGE REVENUE BONDS DUE APRIL 1 199495 AND 2011 CONTINENTAL BANK CHICAGO IS TRUSTEE SAN FRANCISCO CALIF AIRPORTS COMMISSION WILL REDEEM ON APRIL 1 1993 THE FOLLOWING SERIES B SAN FRANCISCO INTERNATIONAL AIRPORT REVENUE BONDS DUE MAY 1 OF THE INDICATED YEAR 56 DUE 1993 575 DUE 1994 58 DUE 1995 59 DUE 1996 6 DUE 199798 61 DUE 1999 AND 2000 AND 64 DUE 2012 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE SOUTHEASTERN OKLAHOMA INDUSTRIES AUTHORITY WILL REDEEM ON APRIL 1 1993 200000 PRINCIPAL AMOUNT OF ITS 5 5/8 POLLUTION CONTROL FACILITIES REVENUE BONDS SERIES 1973 DUE APRIL 1 2003 CONTINENTAL BANK CHICAGO IS TRUSTEE ALUMINUM CO OF AMERICA WILL REDEEM ON MARCH 26 1993 ITS 6 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 BANKERS TRUST CO LONDON IS TRUSTEE AMERICAN INTERNATIONAL GROUP INC WILL REDEEM ON APRIL 2 1993 ITS EXCHANGEABLE MONEY MARKET CUMULATIVE PREFERRED STOCK SERIES M1 CHEMICAL BANK NEW YORK IS PAYING AGENT BOSTON EDISON CO WILL REDEEM ON MARCH 29 1993 ITS 4 3/4 SERIES I FIRST MORTGAGE BONDS DUE 1995 STATE STREET BANK & TRUST CO BOSTON IS TRUSTEE DETROIT EDISON CO WILL REDEEM ON MARCH 26 1993 ITS 228 SERIES PREFERENCE STOCK ITS 96 SERIES PREFERRED STOCK AND ITS 972 SERIES PREFERRED STOCK FLORIDA POWER & LIGHT CO A UNIT OF FPL GROUP INC WILL REDEEM ON APRIL 1 1993 65000 SHARES OF ITS 1132 SERIES O PREFERRED STOCK AND 37461 SHARES OF ITS 1008 SERIES J PREFERRED STOCK BANCBOSTON CLEARANCE INC NEW YORK IS PAYING AGENT GW OVERSEAS FINANCE NV WILL REDEEM ON MARCH 30 1993 ITS GUARANTEED FLOATING RATE NOTES DUE 1994 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE MR BULB CO WILL REDEEM ON APRIL 13 1993 ITS REDEEMABLE COMMON STOCK PURCHASE WARRANTS AMERICAN SECURITIES TRANSFER INC DENVER COLO IS TRANSFER AGENT 9303020002 930302 POLITICS & POLICY LUXURY TAX REPEAL WON'T BE BLOCKED BY ADMINISTRATION COSTLY YACHTS LEFT WORKERS HIGH AND DRY FIRMS SAY REVENUE FORECASTS DECLINE BY RICK WARTZMAN AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON MAY WANT TO SOAK THE RICH BUT HE COULD ALSO MAKE IT CHEAPER FOR THEM TO DRY OUT ABOARD A NEW YACHT DESPITE THE POPULIST CURTAILTHECONSUMPTION MESSAGE EMANATING FROM THE WHITE HOUSE ADMINISTRATION OFFICIALS ARE SIGNALING THAT THEY'LL GO ALONG WITH CONGRESSIONAL EFFORTS TO REPEAL THE LUXURY TAX ON BOATS PRICED AT MORE THAN 100000 PRIVATE PLANES JEWELRY AND FURS SEN JOHN CHAFEE A RHODE ISLAND REPUBLICAN WHO OPPOSES THE TAX SAYS WHEN TREASURY SECRETARY LLOYD BENTSEN GAVE HIM AN ADVANCE BRIEFING ON THE PRESIDENT'S ECONOMIC PLAN THE SENATOR ASKED ABOUT THE REPEAL AND HE SAID THAT'S UP TO US THE ADMINISTRATION PREFERS TO DEAL WITH THE REPEAL IN A COMPREHENSIVE TAX BILL THIS SUMMER BUT WITH SEVERAL MAJOR BOAT SHOWS FAST APPROACHING MR CHAFEE IS RELUCTANT TO WAIT I'LL JUST DO IT AS SOON AS I CAN HE SAYS EVER SINCE THE LUXURY TAX WAS CONCEIVED IN 1990 BY CONGRESSIONAL DEMOCRATS EAGER TO SHOW THEY WERE BEING TOUGH ON THE RICH TAX EXPERTS HAVE WONDERED WHETHER THE LEVY IS MORE TROUBLE THAN IT IS WORTH ANNUAL PROJECTIONS OF THE REVENUE GENERATED BY THE TAX HAVE FALLEN STEADILY SINCE ITS INTRODUCTION AND REPEALING THE TAX ON EVERYTHING BUT EXPENSIVE AUTOMOBILES WHERE IT WOULD BE ADJUSTED TO ACCOUNT FOR INFLATION WOULD COST THE GOVERNMENT ONLY ABOUT 520 MILLION OVER FIVE YEARS ACCORDING TO AN ESTIMATE MADE LAST FALL BY CONGRESS'S JOINT COMMITTEE ON TAXATION OFFICIALS AT COMPANIES THAT SELL LUXURY GOODS INSIST THAT THE TAX PUNISHES WORKING PEOPLE NOT THE WELLTODO BY CUTTING INTO SALES AND FORCING LAYOFFS IT HAS UNQUESTIONABLY HURT THE INDUSTRY SAYS MIKE ROMAN CHAIRMAN OF JEWELERS OF AMERICA A NEW YORKBASED TRADE GROUP YACHT BUILDERS CONTEND THE TAX HAS HELPED GUT THEIR REVENUE BY AS MUCH AS 80 WHILE TRIGGERING TENS OF THOUSANDS OF JOB CUTS WE'RE ALL LOSING MONEY SAYS BOB HEALEY THE CHIEF EXECUTIVE OF VIKING YACHTS IN NEW GRETNA NJ AND CHAIRMAN OF A GROUP CALLED THE COALITION TO SAVE JOBS IN BOATING IT'S LIKE A BLOODLETTING A STUDY BY ECONOMISTS AT THE CONGRESSIONAL RESEARCH SERVICE DISPUTES THAT VIEW ARGUING THAT THE YACHT INDUSTRY STARTED FALLING APART EVEN BEFORE THE EXCISE TAX TOOK EFFECT WHATEVER THE CASE THE ADMINISTRATION'S DECISION NOT TO STAND IN THE WAY OF A REPEAL OF THE TAX HAS MORE TO DO WITH POLITICS THAN ECONOMICS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE URGED THE ADMINISTRATION TO INCLUDE THE REPEAL AS PART OF MR CLINTON'S ECONOMIC PLAN HOWEVER THE WHITE HOUSE DECIDED IT DIDN'T FIT WITH THE PRESIDENT'S CAREFULLY TAILORED MESSAGE OF FAIRNESS NOW BY LETTING CONGRESS TAKE THE LEAD THE PRESIDENT CAN KEEP HIS TAXTHEWEALTHY IMAGE WHILE GAINING FAVOR WITH LAWMAKERS THE PRESIDENT WILL GIVE THEM A HIGHPROFILE ISSUE AT HOMEAS WELL AS A COMMON STAKE IN THE PASSAGE OF THE ECONOMIC PACKAGE SEN CHAFEE WHO LIKE SEN MITCHELL HAS BOAT YARDS IN HIS STATE IS A VOTE THE ADMINISTRATION DESPERATELY WANTS SEN ROBERT DOLE WHOSE HOME STATE OF KANSAS IS A BIG PRODUCER OF PRIVATE AIRPLANES COULD MAKE THE PRESIDENT'S LIFE A LOT HARDEROR EASIERIN HIS ROLE AS SENATE MINORITY LEADER PERHAPS THE MOST INTERESTING CHALLENGER OF THE LUXURY TAX IS A NEW SENATOR DEMOCRAT BEN NIGHTHORSE CAMPBELL OF COLORADO MR CAMPBELL IS ALSO A SUCCESSFUL JEWELER AND WON STRONG FINANCIAL SUPPORT FROM THE INDUSTRY DURING HIS CAMPAIGN LAST FALL 9303020001 930302 NORTHWEST AIRLINES OFFERS 20 STAKE BOARD SEATS IF UNIONS GRANT CONCESSIONS BY ROBERT L ROSE AND BRETT PULLEY STAFF REPORTERS OF THE WALL STREET JOURNAL NORTHWEST AIRLINES SETTING UP A LIKELY SHOWDOWN WITH LABOR OFFERED ITS UNION EMPLOYEES A NEW CONTRACT THAT WOULD GIVE THEM A 20 STAKE AND THREE OF 15 BOARD SEATS IN EXCHANGE FOR CONCESSIONS BUT THE OFFER FROM THE TROUBLED AIRLINE FELL SHORT OF THE UNIONS' PREVIOUS DEMANDS AND AN AUTOMATIC APPROVAL BY THE COMPANY'S MARCH 10 DEADLINE WAS FAR FROM CERTAIN THE COMPANY DIDN'T SAY WHAT IT WOULD DO IF THE UNIONS DON'T APPROVE THE PLAN BY THAT DATE IN MAKING WHAT IT CALLED ITS BEST OFFER THE UNIT OF WINGS HOLDINGS INC IS PUTTING PRESSURE ON LABOR GROUPS REPRESENTING 40000 EMPLOYEES TO REACH A QUICK AGREEMENT TO HELP IT THE EMPLOYEES' NEW STAKE WOULD BE IN RETURN FOR 883 MILLION IN WAGE AND BENEFIT CONCESSIONS OVER THE NEXT THREE YEARS THE COMPANY SAID IT ALSO INCLUDED IN ITS OFFER INCENTIVES FOR IT TO RESTRUCTURE ITS DEBT AND OBTAIN NEW CAPITAL IT WAS BY NO MEANS CLEAR HOWEVER THAT THE UNIONS WILL AGREE THE COMPANY'S OFFER WAS FAR SHORT OF THE LABOR GROUPS' DEMANDS FOR AN 80 STAKE AND A MECHANISM THAT WOULD ALLOW THEM TO NAME FIVE OF 15 BOARD MEMBERS AND TO SELECT ANOTHER FIVE JOINTLY WITH MANAGEMENT THE UNIONS HAVE ALSO INSISTED THAT THE AIRLINE'S OWNERS AND LENDERS MAKE CONCESSIONS AT THE SAME TIME AS THE LABOR GROUPS THE UNIONS APPEARED TO HAVE BEEN CAUGHT BY SURPRISE BY THE COMPANY'S ANNOUNCEMENT SEVERAL SAID THEY COULDN'T COMMENT BECAUSE THEY WERE STILL STUDYING THE DETAILS OF THE OFFER LATE YESTERDAY BUT A SPOKESMAN FOR THE AIR LINE PILOTS ASSOCIATION WHICH NORTHWEST IS ASKING TO GRANT 379 MILLION IN CONCESSIONS SAID THE DETAILS WERE NO DIFFERENT THAN THOSE THAT THE TWO SIDES HAVE BEEN DISCUSSING IN PRIVATE IN RECENT WEEKS IT'S AN OBVIOUS ATTEMPT TO SHIFT NEGOTIATIONS TO A PUBLIC FORUM THIS IS BECAUSE THEY HAVE BEEN UNSUCCESSFUL IN CONVINCING THE LABOR LEADERS OF THE MERITS OF THEIR PLAN THE UNION SPOKESMAN SAID HOWEVER HE SAID THE LABOR LEADERS WILL STUDY THE PROPOSAL AND ISSUE A STATEMENT MARCH 8 JOHN DASBURG CHIEF EXECUTIVE OFFICER OF THE AIRLINE SAID IN 14PAGE LETTER TO THE UNIONS THAT THE OFFER WAS INTENDED TO MEET THEIR CONCERNS IT WOULD HE SAID ENSURE THE VIABILITY OF THE COMPANY AND ENHANCE THE JOB SECURITY OF YOUR MEMBERS AND ALL EMPLOYEES OF NORTHWEST AT THE SAME TIME THE COMPANY LEFT LITTLE ROOM TO MANEUVER SAYING ONLY THAT IT WOULD ENTERTAIN REQUESTS TO FINE TUNE THE OFFER WE DON'T REALLY HAVE ANYTHING ELSE TO TALK ABOUT A TOP COMPANY OFFICIAL SAID YESTERDAY THE COMPANY DIDN'T MAKE CLEAR WHAT IT WOULD DO IF THE UNIONS REJECT THE OFFER BUT IT DID SAY IN A CONFERENCE CALL WITH REPORTERS THAT IT HAD NO PLANS TO FILE FOR PROTECTION UNDER BANKRUPTCY LAWS NORTHWEST SAID MANAGEMENT AND NONCONTRACT EMPLOYEES WOULD MAKE SIMILAR CONCESSIONS AMOUNTING TO 92 MILLION BRINGING THE TOTAL SAVINGS TO 9 MILLION OVER THREE YEARS UNDER THE PLAN OUTLINED BY MR DASBURG EMPLOYEES WOULD TAKE WAGE REDUCTIONS RANGING FROM 875 FOR A WORKER EARNING 20000 A YEAR TO 175 FOR A WORKER EARNING 150000 THE WAGE CUTS WOULD ACCOUNT FOR 793 MILLION OF THE TOTAL SAVINGS ANOTHER 92 MILLION WOULD BE SAVED WITH REDUCTIONS IN VACATIONS WHILE 90 MILLION WOULD COME AS EMPLOYEES AND RETIREES PAY 15 OF THE COMPANY'S HEALTH AND DENTAL COSTS THE NATION'S FOURTHLARGEST AIRLINE NORTHWEST HAS BEEN HURT BY INDUSTRYWIDE LOSSES AND ITS OWN MASSIVE DEBT PROBLEM SADDLED WITH ABOUT 4 BILLION IN DEBT LARGELY FROM THE 1989 LEVERAGED BUYOUT OF THE AIRLINE THE COMPANY HAS RECENTLY BEEN FORCED TO CANCEL A 35 BILLION AIRCRAFT ORDER AND DELAY THE DELIVERY OF AN ADDITIONAL 27 BILLION ORDER NORTHWEST HAS ALSO RECENTLY DELAYED 340 MILLION IN DEBT PRINCIPAL PAYMENTS IN ITS PROPOSAL TO THE UNIONS NORTHWEST PROMISED TO RESTRUCTURE ITS DEBT AND EQUITY AND ASSURED THAT EXISTING SHAREHOLDERS WILL NOT BENEFIT UNFAIRLY FROM THE CONTRIBUTIONS OF EMPLOYEES THE PROPOSAL SAYS THAT DURING THE THREEYEAR COSTREDUCTION PERIOD NO CASH DIVIDENDS WILL BE PAID TO SHAREHOLDERS ON THEIR CURRENT EQUITY HOLDINGS AND NO MANAGEMENT FEES WILL BE PAID TO EQUITY HOLDERS NORTHWEST COOWNERS ALFRED CHECCHI AND GARY WILSON HAVE PREVIOUSLY BEEN PAID A COMBINED 10 MILLION A YEAR FOR MANAGING THE AIRLINE HOLDING COMPANY THE COMPANY SAID THAT IF BY THE BEGINNING OF NEXT YEAR IT HAS NOT COMPLETED THE RESTRUCTURING OF ITS PRIMARY DEBT THEN THE EMPLOYEES' WAGES AND BENEFITS WILL SNAP BACK TO THEIR PRESENT LEVELS THE COMPANY ALSO SAID THAT BY JUNE 1995 IT WOULD SECURE 500 MILLION OF NEW PERMANENT CAPITAL BUT OFFERED NO DETAILS OF THE SOURCE OF SUCH AN INFUSION IF THE CAPITAL IS NOT SECURED THE COMPANY SAID IT WOULD INCREASE THE EMPLOYEES' STAKE TO 51 9303020187 930129 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 9303020179 930121 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 9303020045 930125 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 9303010193 930301 INTERNATIONAL WASHINGTON INSIGHT CURRENT POLICIES ABOUT REFUGEES LEAVE BOSNIANS AND OTHERS OUT IN THE COLD BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NOTHING SHINES SO HARSH A LIGHT ON CURRENT POLICIES TOWARD THE WORLD'S UPROOTED PEOPLE AS THIS MINDBOGGLING FACT BOSNIAN MUSLIMS GENERALLY DON'T QUALIFY AS REFUGEES PEOPLE FLEEING ETHNIC CLEANSING WHICH IS AS CLOSE TO GENOCIDE AS YOU CAN GET HAVEN'T BEEN FOUND TO BE REFUGEES BY THE GOVERNMENTS THAT HAVE TAKEN THEM IN SAYS ROGER WINTER DIRECTOR OF THE US COMMITTEE FOR REFUGEES A PATCHWORK OF SAFEHAVEN ARRANGEMENTS AND HUMANITARIAN PROJECTS IS PROVIDING SOME TEMPORARY RELIEF AND THE US LAST WEEK TOOK IN 39 BOSNIANS RELEASED FROM SERBIAN CONCENTRATION CAMPS AND THEIR FAMILIES GRANTING THIS HANDFUL REFUGEE STATUS BUT MANY MUSLIMS FLEEING BOSNIA ARE BEING STOPPED AT CROATIA AND SLOVENIA AND NEIGHBORING AUSTRIA IS CLAMPING DOWN TOO AMONG OTHER THINGS OFFICIALS IN THESE PLACES FEAR THAT BECAUSE THE BOSNIANS GENERALLY AREN'T RECOGNIZED AS REFUGEES THEY WON'T BE ABLE SETTLE IN OTHER PLACES AND INSTEAD WILL BECOME A COSTLY BURDEN ALL THIS FLIES IN THE FACE OF A 1951 INTERNATIONAL CONVENTION THAT SUPPOSEDLY GUARANTEES THE RIGHT OF ASYLUM TO PEOPLE FACING PERSECUTION IN THEIR HOME COUNTRIES BECAUSE OF THEIR RACE RELIGION OR POLITICAL OPINIONS BOSNIAN MUSLIMS CERTAINLY SEEM TO FIT THIS DEFINITION THE FACT THAT THEY HAVEN'T BEEN UNIVERSALLY AFFORDED PROTECTION AS REFUGEES HIGHLIGHTS A WORRISOME EROSION OF THE RIGHT OF ENDANGERED PEOPLE TO GAIN ASYLUM AROUND THE WORLD WHO IS A REFUGEE IF THEY'RE NOT ASKS DENNIS GALLAGHER HEAD OF THE REFUGEE POLICY GROUP A WASHINGTON THINK TANK THE BOSNIANS' PLIGHT IS ONLY THE LATEST INSTANCE WHERE THE SPIRIT AND PROBABLY THE LETTER OF THE 1951 CONVENTION HAS BEEN COMPROMISED THE US POLICY OF TURNING BACK HAITIANS WITHOUT REVIEWING THEIR CLAIMS TO REFUGEE STATUS ALSO IS A MAJOR SETBACK SO WAS ITALY'S 1991 DECISION TO SEND BACK ABOUT 17000 ALBANIANS WITHOUT HEARING THEIR CLAIMS US DECISIONS ON ACCEPTING REFUGEES HAVE MORE TO DO WITH THE COLD WAR PARADIGM AND WITH DOMESTIC HUMANITARIAN PRIORITIES THAN WITH THE CURRENT NEEDS OF THE WORLD'S REFUGEE POPULATION OF 122000 REFUGEES TAKEN IN LAST YEAR 100000 WERE RUSSIAN JEWS AND VIETNAMESE FOR THE CONCEPT OF REFUGEE STATUS TO BE SUSTAINED THE US MUST FREE ITSELF FROM THE COLD WAR MOLD WHERE THE OPPRESSOR USUALLY WAS AN AUTHORITARIAN COMMUNIST STATE TRIBAL CRUELTY CHAOS AND STARVATION NOT TOTALITARIAN OR IDEOLOGICAL OPPRESSION ARE SPAWNING TODAY'S REFUGEES WHO NOW TOTAL 41 MILLION PEOPLE WHEN THOSE STILL INSIDE THEIR HOME COUNTRIES ARE COUNTED AS MANY AS 60000 TAJIKS HAVE FLED TO AFGHANISTAN SEEKING A HAVEN FROM FACTIONAL VIOLENCE IN THEIR NEWLY INDEPENDENT REPUBLIC THEY LIKE THE BOSNIANS AND SOMALIS AREN'T ANY LESS ENDANGERED BECAUSE THEY HAVE BEEN BRUTALIZED BY FACTIONS THE GOVERNMENT IF THERE IS A GOVERNMENT CAN'T OR WON'T CONTROL WHILE CHANGING THE NATURE OF THE REFUGEE PROBLEM THE END OF THE SUPERPOWER STANDOFF ALSO HAS CREATED THE OPPORTUNITY FOR SOME OLD REFUGEES TO RETURN HOME HUNDREDS OF THOUSANDS OF CAMBODIANS ARE RETURNING AFTER A DECADE IN CAMPS AND AFGHANS ARE MOVING BACK FROM IRAN AND PAKISTAN THE PROSPECTS ARE BETTER THAN THEY HAVE BEEN FOR A LONG TIME FOR LARGESCALE REPATRIATION TO MATERIALIZE SAYS ROBERT DEVECCHI EXECUTIVE DIRECTOR OF THE INTERNATIONAL RESCUE COMMITTEE THE US WORKING WITH THE UNITED NATIONS SHOULD TRY BOTH TO PROVIDE ASYLUM FOR THE MILLIONS OF NEW REFUGEES AND HELP THE OLD ONES REPATRIATE WASHINGTON ALSO SHOULD PUSH TO ESTABLISH AN INTERNATIONAL POLICY FOR PROVIDING TEMPORARY SAFE HAVENS FOR THE VICTIMS OF CIVIL STRIFE OR FAMINE AFRICAN STATES THOUGH COMPARATIVELY POOR HAVE LIBERAL POLICIES FOR ACCEPTING VICTIMS OF CIVIL WAR OR NATURAL DISASTERS MALAWI FOR EXAMPLE HAS TAKEN IN NEARLY A MILLION PEOPLE FLEEING FIGHTING IN MOZAMBIQUE SOMETIMES SHELTERED AREAS CAN BE WITHIN THE HOME COUNTRIES AS THE RESCUE EFFORTS FOR THE KURDS AND SOMALIS HAVE DEMONSTRATED WHEN SUCCESSFUL SUCH INTERVENTIONS CAN CONTAIN THE VIOLENCE THAT FORCES PEOPLE TO BECOME REFUGEES BUT THE US AND ITS ALLIES HAVE TO RECOGNIZE THAT INTERVENTION OR PRESSURE ON GOVERNMENTS TO PROTECT HUMAN RIGHTS CAN'T BE THE ONLY POLICY TO PURSUE WHEN DROVES OF DISPLACED PEOPLE ARE SEEKING PROTECTION JOHN FREDRIKSSON OF THE LUTHERAN IMMIGRATION AND REFUGEE SERVICE WARNS AGAINST RELYING ENTIRELY ON A FALSE HOPE THAT WE CAN SOLVE ROOT CAUSES OF PROBLEMS WITHOUT DEALING WITH THE REFUGEES THEMSELVES A PLANNED REORGANIZATION IN THE STATE DEPARTMENT WILL PLACE REFUGEE POLICIES UNDER A NEW STRUCTURE THAT WILL REPORT TO UNDERSECRETARY TIM WIRTH THE FORMER COLORADO SENATOR THE NEW TEAM ALONG WITH THE MUCHCHANGED WORLD MAKE THIS AN OPPORTUNE TIME FOR SOME FRESH THINKING 9303010192 930301 CREDIT RATINGS CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ STANDARD & POOR'S CORP RAISED ITS DEBT RATINGS ON CPC CITING THE CONSUMER FOOD COMPANY'S STRONG FINANCIAL PROFILE IN RECENT YEARS AND EXPECTATIONS THAT ITS FINANCIAL HEALTH CAN BE SUSTAINED IN THE FUTURE ABOUT 15 BILLION IN DEBT IS OUTSTANDING S&P RAISED THE COMPANY'S SENIOR DEBT RATING TO SINGLEAPLUS FROM SINGLEA AND ITS SUBORDINATED DEBT RATING TO SINGLEA FROM SINGLEA MINUS CRAY RESEARCH INC EAGEN MINN RATINGS ON 106 MILLION OF THE SUPERCOMPUTER MAKER'S DEBT WERE LOWERED BY STANDARD & POOR'S CORP CITING REDUCED PROFITABILITY AND SLOWED DEMAND IN A MATURING MARKET S&P LOWERED THE RATING ON CRAY'S SUBORDINATED DEBT TO TRIPLEBMINUS FROM TRIPLEB THE IMPLIED SENIOR RATING ALSO WAS LOWERED TO TRIPLEB FROM TRIPLEBPLUS IN ADDITION S&P SAID THE RATINGS OUTLOOK FOR CRAY RESEARCH WAS REVISED TO STABLE FROM NEGATIVE S&P SAID THE MASSIVELY PARALLEL PROCESSING COMPUTING SYSTEMS CRAY RESEARCH HAS UNDER DEVELOPMENT COULD PROVIDE SIGNIFICANT GROWTH IN THE FUTURE BUT FOR NOW S&P SAID CRAY RESEARCH FACES PRESSURE ON GROSS MARGINS DUE TO INTENSE PRICE COMPETITION AND THE SHIFT IN PRODUCT MIX AND MUST CONTINUE TO INVEST HEAVILY IN RESEARCH AND DEVELOPMENT THE CREDITRATING SERVICE ALSO NOTED THAT THE COMPANY'S FINANCIAL CONDITION REMAINS VERY STRONG WITH ABOUT 150 MILLION OF CASH AND LONGTERM INVESTMENTS AT THE END OF 1992 VERSUS SOME 112 MILLION OF DEBT FIRST FIDELITY BANCORP LAWRENCEVILLE NJ MOODY'S INVESTORS SERVICE INC SAID IT RAISED THE LONGTERM DEBT RATINGS OF FIRST FIDELITY AND SUBSIDIARIES CITING THE BANK COMPANY'S REGIONAL GROWTH AND IMPROVING ASSET QUALITY ABOUT 830 MILLION OF DEBT IS AFFECTED FIRST FIDELITY'S SUBORDINATED DEBT WAS RAISED TO BAA1 FROM BAA2 SHELF REGISTRATION FOR SENIOR DEBT TO PRELIMINARY SINGLEA3 FROM P BAA1 AND PREFERRED STOCK TO SINGLEA3 FROM BAA2 THE SENIOR DEBT RATING FOR FIRST FIDELITY INC AN INTERMEDIATE HOLDING COMPANY SUBSIDIARY WAS RAISED TO SINGLEA3 FROM BAA1 THE PARENT COMPANY'S RATING FOR COMMERCIAL PAPER WAS CONFIRMED AT PRIME2 MOODY'S SAID THE UPGRADES REFLECT FIRST FIDELITY'S CONTINUING IMPROVEMENT OF ITS ASSET QUALITY AND THE BOLSTERING OF ITS BALANCE SHEET WHILE CONSOLIDATING A FORMIDABLE REGIONAL FRANCHISE BALANCE SHEET IMPROVEMENT IS PRIMARILY A RESULT OF THE RETENTION OF STRONG EARNINGS BOOSTING THE BANK'S CAPITAL AND RESERVE LEVELS WHILE NONPERFORMING ASSETS FALL 9303010191 930301 BAXTER ACQUIRES CR BARD UNIT MURRAY HILL NJ CR BARD INC SOLD ITS MEDSYSTEMS INFUSION PUMP DIVISION TO BAXTER INTERNATIONAL INC A HOSPITAL AND LABORATORY PRODUCTS COMPANY BASED IN DEERFIELD ILL TERMS WERE NOT DISCLOSED THE SURGICAL SUPPLY COMPANY WILL RECORD A GAIN ON THE SALE IN THE FIRST QUARTER WHICH WILL ESSENTIALLY BE OFFSET BY A CHARGE IT WILL TAKE FOR ADOPTING A NEW RULE ON ACCOUNTING FOR RETIREE MEDICAL BENEFITS 9303010190 930301 PEPPERAND SALT HAS SPLIT THE WORLD IN TWO IN SHORTENED FORM TO YOU YOU SHOULD NEVER BREATHE THE AIR IN WHAT I CALL GOOP THERAPY 9303010189 930301 LETTERS TO THE EDITOR NEW YORK CABBIES WE ARE THE WORLD YOUR FEB 1 EDITORIAL HAILING THE AMERICAN DREAM PRESENTS SOME VALUABLE OBSERVATIONS ABOUT TAXICAB INDUSTRIES NATIONALLY AND THE DIFFICULTY MINORITIES HAVE BREAKING BARRIERS AS ENTREPRENEURS YOU MENTIONED NEW YORK CITY'S NOTORIOUS MEDALLION SYSTEM BUT FAILED TO MENTION THAT THE SYSTEM HAS HISTORICALLY BEEN THE FOOT IN THE DOOR FOR TENS OF THOUSANDS OF IMMIGRANTS OVER THE YEARS AND AT THIS MOMENT THE APPROXIMATELY 7000 MEDALLION OWNERS REPRESENT ALL MINORITIES BLACK HISPANIC ASIANS JEWS MUSLIMS CHRISTIANS GREEKS RUSSIANS BANGLADESHIS PAKISTANIS ISRAELIS HAITIANS THE OWNERS IN TURN PROVIDE EMPLOYMENT TO AN EVEN GREATER RANGE OF PEOPLE THE LATEST STATISTICS AVAILABLE INDICATE THAT ABOUT 95 OF THOSE APPLYING FOR A NEW YORK TAXI DRIVER'S LICENSE ARE FOREIGNBORN WHO SPEAK ENGLISH AS A SECOND LANGUAGE THE MEMBERS OF OUR ASSOCIATION ALONE PROVIDE ABOUT 8000 JOBS AND WE OPERATE ONLY 2000 OF THE 11787 TAXICABS IN NEW YORK CITY FURTHER YOU DID NOT EVEN MENTION THE BURGEONING LIVERY INDUSTRY IN NEW YORK WHICH OPERATES ABOUT 30000 VEHICLESFORHIRE A LARGE PERCENTAGE OF WHICH ARE OWNED BY MINORITIES WHICH EMPLOY MANY MORE MINORITY WORKERS AND SERVICE TENS OF THOUSANDS OF RESIDENTS OF THIS CITY FREQUENTLY MORE IN MINORITY AREAS MANY DRIVERS LEASE A TAXICAB UNTIL THEY CAN SAVE ENOUGH MONEY TO BUY THEIR OWN MEDALLION AND HAVE A PIECE OF THE AMERICAN DREAM TAXI DRIVERS IN NEW YORK ARE ENTREPRENEURS NOT EMPLOYEES THEY ARE RESPONSIBLE FOR THE DAILY LEASE OF THEIR CABS THE SAFETY OF THE VEHICLE AND PASSENGERS AND CAN CONTROL HOW MUCH MONEY THEY MAKE AND HOW MANY HOURS THEY WORK IN A GIVEN WEEK YES THE WORK IS DEMANDING BUT WE MUST REMIND YOU GIVEN THE BENEFITS OF THE ENTREPRENEURIAL ASPECTS OF THE INDUSTRY AND THE ATTENTION WE DIRECT TO MINORITY AND IMMIGRANT POPULATIONS VIA OUR MANY EMPLOYMENT AND EDUCATION PROGRAMS WE STILL HAVE MANY TAXIS AVAILABLE WITH NOT ENOUGH DRIVERS TO OPERATE THEM BLANKET STATEMENTS SUCH AS THE ONE YOU MADE IN YOUR EDITORIAL SOMETIMES COVER EVERYTHING BUT THE TRUTH 9303010188 930301 PHILADELPHIA ELECTRIC TO TAKE NUCLEAR FUEL FROM SHOREHAM PLANT THE AGREEMENT IS PART OF THE 186 MILLION TASK OF REMOVING RADIOACTIVE WASTE AND DISMANTLING THE MOTHBALLED 5 BILLION SHOREHAM PLANT LOCATED ABOUT 60 MILES EAST OF MANHATTAN PHILADELPHIA ELECTRIC SAID IT WILL BE PAID 45 MILLION BY THE AUTHORITY FOR TAKING THE FUEL WHICH WILL BE USED AT ITS LIMERICK GENERATING STATION IN MONTGOMERY COUNTY PA THE AUTHORITY WILL ALSO PAY GENERAL ELECTRIC CO 20 MILLION TO OVERSEE THE TRANSFER OF THE FUEL BY RAIL BETWEEN MID1993 AND EARLY 1994 AN AUTHORITY OFFICIAL SAID THAT ALTHOUGH A ROUTE TO TRANSPORT THE FUEL HADN'T BEEN DECIDED ON YET IT WAS UNLIKELY THE TRANSFER WOULD OCCUR THROUGH NEW YORK CITY EVEN IF THAT WERE THE CASE HE SAID THE DANGER WAS LOW CONSIDERING THAT WE HAVE SAFELY SHIPPED ABOUT 18 MILLION POUNDS OF LOW LEVEL RADIOACTIVE WASTE ON TRUCKS THROUGH NEW YORK CITY SINCE LAST SUMMER THE TRANSFER OF THE FUEL IS EXPECTED TO RESULT IN SAVINGS ALL AROUND PHILADELPHIA ELECTRIC SAID ITS CUSTOMERS WILL BENEFIT FROM ABOUT 70 MILLION IN FUEL COST SAVINGS IN THEIR RATES OVER THE NEXT 12 TO 15 YEARS BECAUSE THE SHOREHAM FUEL WILL DISPLACE AT NO COST FUEL THAT OTHERWISE WOULD HAVE TO BE PURCHASED THE AGREEMENT ALSO MEANS SAVINGS FOR THE AUTHORITY WHICH PAYS 2 MILLION TO 4 MILLION EACH MONTH TO WATCH THE FUEL THE OFFICIAL SAID THE NUCLEAR REGULATORY COMMISSION WHICH HAS TO APPROVE THE DEAL ORDERED THE AUTHORITY TO REMOVE ALL RADIOACTIVE WASTE FROM THE SITE BY ABOUT 1998 THE SHOREHAM PLANT RAN INTO HEAVY POLITICAL OPPOSITION BECAUSE OF FEARS THAT SAFE EVACUATION WOULD BE IMPOSSIBLE IN THE EVENT OF AN ACCIDENT 9303010187 930301 DILLARD RESULTS ARE BELOW EXPECTATIONS STOCK PRICE FALLS 75 LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC DISAPPOINTED ANALYSTS TWICE FIRST WITH ITS FISCAL FOURTHQUARTER EARNINGS THEN WITH A WARNING THAT SALES HAD SLOWED SINCE PRESIDENT CLINTON'S ECONOMIC SPEECH THE COMBINATION DROVE THE HIGHFLYING STOCK DOWN 75 FRIDAY FOR THE QUARTER ENDED JAN 30 THE RETAILER REPORTED EARNINGS OF 1104 MILLION OR 98 CENTS A SHARE AN 18 RISE FROM LAST YEAR'S 933 MILLION OR 83 CENTS A SHARE SALES IN COMPARABLE STORES INCREASED 8 AND TOTAL SALES WERE UP 17 TO 15 BILLION FROM 13 BILLION THE PERSHARE RESULTS REFLECT A 3FOR2 STOCK SPLIT IN JUNE 1992 BUT ANALYSTS HAD BEEN EXPECTING EARNINGS OF 101 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC THIS WASN'T HUGELY DISAPPOINTING BUT IT DID GIVE PEOPLE PAUSE SAID KIMBERLY K WALIN A SHEARSON LEHMAN BROTHERS INC ANALYST DILLARDS HAS RELATIVELY HIGH EXPECTATIONS ASSOCIATED WITH IT MS WALIN NOTED THAT WHILE AN 18 JUMP IN EARNINGS WAS ADMIRABLE IT WAS MORE COMMONPLACE THAN TRADERS HAVE COME TO EXPECT FROM FASTGROWING DILLARD EARLIER IN THE WEEK MAY DEPARTMENT STORES CO REPORTED A 20 EARNINGS INCREASE FOR THE SAME PERIOD IN A CONFERENCE CALL WITH ANALYSTS DILLARD SAID IT HAD BEEN PRETTY AGGRESSIVE ABOUT ITS PLANS FOR SPRING ANALYSTS INVOLVED IN THE CALL SAID THE COMPANY ALSO SAID SALES HAD TURNED LOWER AFTER PRESIDENT'S DAY LEADING TO WORRIES ABOUT EXCESS INVENTORY IF THERE IS A SPRING SLOWDOWN THEY SAID A DILLARD SPOKESMAN DID NOT RETURN A TELEPHONE CALL IN NEW YORK STOCK EXCHANGE TRADING DILLARD CLOSED AT 44375 DOWN 3625 FROM 48 FOR THE YEAR DILLARD EARNED 2364 MILLION OR 211 A SHARE ON SALES OF 471 BILLION COMPARED WITH THE YEAREARLIER 2062 MILLION OR 184 A SHARE ON SALES OF 4 BILLION 9303010186 930301 HOFFENBERG OUTLINES A PLAN TO SWITCH TOWERS NOTES INTO A TRADING SECURITY' BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL STEVEN HOFFENBERG THE HEAD OF TROUBLED TOWERS FINANCIAL CORP IS ASKING FOR HELP FROM SOME OF THE SAME PEOPLE WHO THE SECURITIES AND EXCHANGE COMMISSION SAYS ARE HIS VICTIMS IN LETTERS TO INVESTORS IN TOWERS AND TO BROKERS WHO SOLD TOWERS SECURITIES MR HOFFENBERG OUTLINES A PLAN THAT HE SAYS WILL ENABLE INVESTORS TO RECOUP THE PRINCIPAL OF AT LEAST 200 MILLION IN UNREGISTERED NOTES THOSE ARE THE SAME NOTES THAT THE SEC SAYS TOWERS AND MR HOFFENBERG FRAUDULENTLY SOLD BY SUBSTANTIALLY OVERSTATING THE COLLATERAL THAT WOULD BACK THEM UP THE NOTES OFFERED INTEREST OF 14 TO 16 BUT THE SEC SAYS TOWERS PAID THAT HIGH INTEREST WITH MONEY FROM OTHER INVESTORS IN EARLY FEBRUARY THE SEC SUED TOWERS WHICH EVENTUALLY AGREED AS DID MR HOFFENBERG TO LIMITATIONS ON HOW IT SPENDS ITS MONEY THERE'S ALSO A FREEZE ON THE CONTINUED PAYMENT OF INTEREST AND PRINCIPAL TO INVESTORS IN THE UNREGISTERED NOTES THE SEC SAYS IT WANTS TO PROTECT AS MUCH OF TOWERS'S AND MR HOFFENBERG'S MONEY UNTIL IT FINDS OUT EXACTLY HOW MUCH IS AVAILABLE FOR INVESTORS MEANWHILE THERE ARE GROWING QUESTIONS ABOUT THE STRENGTH OF ANOTHER 200 MILLION IN BONDS ISSUED BY A TOWERS SUBSIDIARY AND BACKED BY HEALTH CARE ACCOUNTS RECEIVABLE LATE LAST WEEK TOWERS SAID IT WOULD RESUME PAYMENTS TO THE TRUSTEES FOR THOSE BONDS BUT LAWYERS FOR THE TRUSTEES SAY THAT 20 MILLION IN PAYMENTS HAVE ALREADY BEEN MISSED AND THAT ANOTHER 50 MILLION IN BOND MONEY IS UNACCOUNTED FOR HOW TO GET OUT OF THIS MESS IN A VAGUE LETTER DATED FEB 23 MR HOFFENBERG WHO IS FINISHING UP THE DETAILS ON HIS PLAN TO LEAVE TOWERS FOR HIS NEW LIFE AS THE PUBLISHER OF THE NEW YORK POST SAYS HE WANTS TO TURN THE TOWERS DEBT HELD BY INVESTORS INTO A TRADING SECURITY INVESTORS WILL BE ABLE TO SELL THOSE SECURITIES IN THE CAPITAL MARKETS TO RECOUP THEIR PRINCIPLE SIC HE EXPLAINS THE LETTER DIDN'T SAY WHETHER THE SECURITY WOULD BE A DEBT OR EQUITY SECURITY THAT NIFTY SWITCH IN TERMS OF THE NOTES AND BONDS IF THEY ARE ALSO INCLUDED WILL BE ACCOMPLISHED MR HOFFENBERG SAYS BY SELLING OR MERGING TOWERS WITH ANOTHER COMPANY IT'S NOT CLEAR WHO WOULD BUY TOWERS WHICH THE SEC SAYS IS INSOLVENT IT'S ALSO UNCLEAR WHY MR HOFFENBERG NEEDS TO TURN THE NOTES INTO A PUBLICLY TRADED SECURITY TO RECOUP THE PRINCIPAL THAT HE OWES INVESTORS MR HOFFENBERG ALSO SENT HIS LETTER ALONG TO BROKERDEALERS WHO HELPED HIM SELL THE NOTES IN THE FIRST PLACE TO MORE THAN 2800 INVESTORS NATIONWIDE I AM NOW ASKING FOR YOUR HELP IN ASSISTING ME IN RESTRUCTURING AND MERGING TOWERS FINANCIAL CORPORATION WITH A LARGER COMPANY SAID MR HOFFENBERG WHO HAS LEFT OPERATIONS AT TOWERS TO PUBLISH THE NEW YORK POST A TABLOID NEWSPAPER FOR INVESTORS WHOSE MONEY IS ON THE LINE AND BROKERS WHOSE REPUTATIONS ARE AT STAKE MR HOFFENBERG'S LETTER MAY GIVE LITTLE HOPE GARY HONODEL A BROKER IN BOULDER COLO WHO SOLD THE NOTES TO FOUR CLIENTS SAYS HE'S CALLED TOWERS 10 TIMES IN THE LAST WEEK OR SO WITH NO RESPONSE HE ADDS I'VE GOT SEVEN ACCREDITED INVESTORS THOSE ELIGIBLE TO BUY UNREGISTERED NOTES AND FOUR ARE IN TOWERS I DON'T FEEL THAT GOOD AT ALL MR HOFFENBERG DID NOT RETURN A PHONE CALL SEEKING COMMENT RICHARD H WALKER THE REGIONAL ADMINISTRATOR IN THE SEC'S NEW YORK OFFICE DECLINED TO COMMENT ON THE LEGALITY OF MR HOFFENBERG'S PLAN 9303010185 930301 LEISURE & ARTS BOOKSHELF THE FABULOUS INHERITANCE OF THE THIRD WIFE BY JOE QUEENAN A COUPLE OF YEARS AGO ROBERT DALLEK WROTE A FINE BIOGRAPHY OF THE LARGERTHANLIFE POLITICIAN LYNDON BAINES JOHNSON IT WAS 591 PAGES LONG A COUPLE OF YEARS BEFORE THAT PAUL KENNEDY TOOK ON THE ENTIRE HISTORY OF THE MODERN WORLD IN THE RISE AND FALL OF THE GREAT POWERS AND GOT THE JOB DONE IN 540 PAGES JUST A FEW MONTHS AGO HAROLD BLOOM HANDLED THE EMERGENCE OF THE POSTCHRISTIAN NATION IN AMERICA IN FEWER THAN 300 PAGES YET WHEN NEW YORK TIMES LEGAL AFFAIRS COLUMNIST DAVID MARGOLICK SET OUT TO WRITE A BOOK ABOUT THE EPIC BATTLE FOR THE JOHNSON & JOHNSON FORTUNE AS THE SUBTITLE READS HE NEEDED 624 PAGES FOR THE ASSIGNMENT EPIC BATTLE OR NO EPIC BATTLE 624 PAGES ABOUT A PROBATE CASE IS REALLY PUSHING IT THE GARGANTUAN OBDURATELY UNREADABLE UNDUE INFLUENCE MORROW 23 STARTS OUT WITH WHAT SEEMS TO BE CAN'TMISS MATERIAL THE NEW JERSEY ADVENTURES OF A YOUNG ATTRACTIVE NOT PARTICULARLY NICE POLISH CHAMBERMAID NAMED BASIA PIASECKA WHO MARRIED SEWARD JOHNSON JR HEIR TO THE MAMMOTH J&J FORTUNE AND THEN INHERITED MOST OF HIS 402 MILLION ESTATE FURIOUS THAT THEY HAD BEEN SHAFTED OUT OF HUNDREDS OF MILLIONS OF DOLLARS BY THE 11THHOUR WILL CHANGES AGREED TO BY THEIR DAD JOHNSON'S SEXTET OF LATTERDAY ESAUS SUED THEY CHARGED THAT THEIR STEPMOTHER 42 YEARS YOUNGER THAN HER ENFEEBLED OCTOGENARIAN MATE HAD USED PSYCHOLOGICAL AND PHYSICAL INTIMIDATION TO INDUCE HIM TO ALTER HIS WILL IN HER FAVOR HOW ELSE COULD YOU EXPLAIN HIS FORKING OVER A COOL 20 MILLION TO BASIA'S IMPOVERISHED RELATIVES BACK IN THE OLD COUNTRY IN THE MONTHS TO COME THE PUBLIC WAS REGALED WITH JUICY TALES OF MURDER CONSPIRACIES BIZARRE MARITAL RELATIONSHIPS GUNPLAY SUICIDE ATTEMPTS SUBSTANCE ABUSE NOT TO MENTION REPORTS THAT THE POOR OLD GEEZER USED TO GET SLAPPED AROUND IN FRONT OF HIS OWN EMPLOYEES BY HIS UNPREDICTABLE THIRD WIFE JIMMY BRESLIN AND MURRAY KEMPTON HAD A FIELD DAY WITH THIS MATERIAL ALAS MESSRS BRESLIN AND KEMPTON ARE NOT THE ONES TELLING THIS IMPROBABLE STORY MR MARGOLICK WRITES LIKE A LEGAL STENOGRAPHER LIKE A CLAIMS ADJUSTER LIKE A SEASONED REPORTER FOR THE NEW YORK TIMES AND HAS PRODUCED A WORK THAT READS LIKE A SERIES OF DEPOSITIONS UNDUE INFLUENCE IS WEIGHTED DOWN BY ENDLESS INVENTORIES OF FURNITURE ARTWORKS SECURITY EQUIPMENT AND HOUSEHOLD APPLIANCES AS WELL AS DISRUPTIVE THUMBNAIL BIOGRAPHIES OF MARGINAL PLAYERS IN THE OVERALL DRAMA IT EVEN CONTAINS POINTLESS DISCUSSIONS OF EATING ARRANGEMENTS DURING COURT ADJOURNMENTS IF THERE IS ANYTHING IN THE AUTHOR'S NOTES THAT HE DIDN'T INCLUDE IN THIS TIDAL WAVE OF MINUTIAE I DON'T WANT TO KNOW WHAT IT IS BASIA'S DENTAL BILLS SEWARD'S HAT SIZE THERE ARE APPROXIMATELY 35 INTERESTING PAGES IN THIS BLOATED AFFAIR SO FOR THE BENEFIT OF READERS WHO DO NOT HAVE THE TIME TO PLOW THROUGH THE THICKETS OF MR MARGOLICK'S PROSE HERE'S A CRIB SHEET THE STUFF ABOUT BASIA'S NEW MANSE A 20 MILLION CENTRAL JERSEY VERSAILLES WITH SALTWATER POOL HIDDEN STAIRCASE AIRCONDITIONED DOGHOUSE AND PORTABLE ANTIKIDNAPPING PANIC BUTTONS CAN BE FOUND IN CHAPTER VI THE STORY ABOUT THE POLISH ARISTOCRAT WHO PAINTED THE GRASS GREEN AFTER BASIA COMPLAINED ABOUT THE LAWN'S JAUNDICED HUE CAN BE FOUND IN CHAPTER VIII THE ANECDOTE ABOUT SEWARD'S DAUGHTER NOT KNOWING HIS AGE WHEN HE DIED APPEARS IN CHAPTER XXII THE MATERIAL ABOUT BASIA SUPPOSEDLY SLAPPING THE OLD MAN AROUND IN THE PRESENCE OF A SECURITY CONSULTANT CAN BE FOUND IN CHAPTER XL WHILE THE STORY ABOUT BASIA OFFERING 100 MILLION TO BUY LECH WALESA A SHIPYARD STARTS IN CHAPTER I AND IS PICKED UP AGAIN IN THE EPILOGUE SOME 600 PAGES LATER FINALLY THE MATCHING 50000POUND DOORS GUARDING BASIA'S PRINCETON FALLOUT SHELTER CONTAINING A CREMATORIUM PERISCOPES AND MAID'S QUARTERS ARE MENTIONED ON THE BOOK'S LAST PAGE BASIA PIASECKA IS A PIECE OF WORK ALL RIGHT AND IN ABLER HANDS THIS BOOK COULD HAVE BEEN A REAL HUMDINGER BUT MR MARGOLICK MISTAKENLY ASSUMES THAT EVERYONE IS AS INTERESTED IN THE CASE'S LEGAL MANEUVERINGS AS HE IS SO LONG AS THE NARRATIVE STICKS TO BASIA HEAVING FLOWERPOTS AT EMPLOYEES AND THREATENING POOR OLD SEWARD WITH A CANE THE READER IS RIGHT THERE IN THE THICK OF THINGS BUT AS SOON AS MR MARGOLICK SWITCHES TO THE PROCEEDINGS INSIDE THE COURT THE BOOK BECOMES FLABBY AND DULL UNDUE INFLUENCE A BOOK THAT DOES NOT RESEMBLE TOM WOLFE'S ACERBIC BONFIRE OF THE VANITIES BUT DOES RESEMBLE THE AWFUL MOVIE BASED ON IT ILLUSTRATES ONCE AGAIN THAT IN TODAY'S PUBLISHING WORLD MANUSCRIPTS GO DIRECTLY FROM THE WORD PROCESSOR TO THE PRINTING PRESS WITHOUT SO MUCH AS A PAUSE FOR AN EDITOR'S RED PENCIL EVEN THE MOST OUTRAGEOUS TALES CAN QUICKLY BECOME ROUTINE MR MARGOLICK WRITES TOWARD THE END OF THE BOOK HOW MANY TIMES CAN ONE DESCRIBE A WOMAN'S SCREAMS IN HOW MANY WAYS CAN ONE DETAIL AN OLD MAN'S DECLINE GOOD QUESTION 9303010184 930301 FOLLOWING CRITICISM AMERICAN EXPRESS LIMITS ROBINSON'S SEVERANCE PACKAGE BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL JAMES ROBINSON III WILL GET A MINIMAL SEVERANCE PACKAGE FOR LEAVING AMERICAN EXPRESS CO SUGGESTING THAT DIRECTORS REMAIN CAUTIOUS IN THE WAKE OF CRITICISM FROM DISGRUNTLED INSTITUTIONAL INVESTORS A PRELIMINARY COPY OF THE COMPANY'S PROXY STATEMENT FILED LATE FRIDAY WITH THE SECURITIES AND EXCHANGE COMMISSION SHOWS THAT THE LONGTIME HEAD OF THE FINANCIAL SERVICES GIANT WILL BE KEPT ON THE PAYROLL FOR JUST TWO YEARS AT HIS ANNUAL SALARY OF 925000 AND WILL FORFEIT 100000 OPTIONS ON THE COMPANY'S STOCK GRANTED FOR 1992 AS WELL AS SOME OTHER BENEFITS THE 57YEAROLD MR ROBINSON ALSO CAN CONTINUE TO LIVE IN AND PAY RENT ON THE COMPANY'S MUSEUM TOWER DUPLEX APARTMENT AT THE MUSEUM OF MODERN ART IN NEW YORK ONLY UNTIL IT IS SOLD A PROCESS THAT A PERSON CLOSE TO THE BOARD SAID IS EXPECTED TO BEGIN SOON IN DETERMINING THE PACKAGE THE BOARD AND ITS COMPENSATION COMMITTEE PUT ASIDE PAST FORMULAS FOR EARLY RETIREMENT AT THE COMPANY THAT COULD HAVE INCREASED THE LIFETIME PENSION BENEFIT BY MORE THAN 170000 A YEAR AND PAST SEVERANCE PRECEDENT THAT COULD HAVE ADDED SEVERAL MORE YEARS OF PAY PEOPLE CLOSE TO THE AMERICAN EXPRESS BOARD SAY DIRECTORS WERE CAUTIOUS ABOUT APPEARING TO REWARD MR ROBINSON FOR HIS SERVICE TO THE COMPANY THIS CAUTION FOLLOWS THE CRITICAL REACTION OF A NUMBER OF LARGE SHAREHOLDERS AFTER THE JANUARY BOARD MEETING AT WHICH MR ROBINSON WAS RETAINED AS CHAIRMAN WHILE HARVEY GOLUB WAS NAMED TO TAKE OVER AS CHIEF EXECUTIVE AS A RESULT THE MAJORITY SUPPORT MR ROBINSON MUSTERED AT THAT TIME WASN'T THERE WHEN IT CAME TO AWARDING HIM A GENEROUS RETIREMENT AND SEVERANCE PACKAGE THEY WERE TOO EMBARASSED TO GO MUCH BEYOND THE MINIMUM SAID HOWARD CLARK SR THE AMERICAN EXPRESS FORMER CHAIRMAN WHO HAS REMAINED A CONSULTANT TO THE BOARD SINCE HE RETIRED IN FAVOR OF MR ROBINSON 15 YEARS AGO MR ROBINSON LEFT THE COMPANY WITHOUT CEREMONY LAST MONDAY AFTER BEING PRESSURED BY THE BOARD FIRST TO GIVE UP THE CHIEF EXECUTIVE TITLE AND THEN AFTER BIG SHAREHOLDERS OBJECTED ABANDONING THE BOARD CHAIRMANSHIP HE HAD LOBBIED SUCCESSFULLY TO RETAIN AMONG THE BENEFITS MR ROBINSON SOUGHT BUT DIDN'T RECEIVE WERE AN ENHANCED PENSION AND A THREEYEAR PAID CONSULTING ROLE WHICH ALSO WOULD HAVE GIVEN HIM A WELLPAID ASSISTANT AND ACCESS TO THE COMPANY'S CORPORATE JET A PERSON CLOSE TO THE BOARD SAID MR ROBINSON HAD ALSO HOPED THE COMPANY WOULD SHARE EXPENSES WITH HIM IN ENDOWING A CHAIR IN HIS NAME AT THE HARVARD BUSINESS SCHOOL SO IT COULD TEACH A COURSE DEVOTED TO TOTAL QUALITY MANAGEMENT THE BOARD IN EFFECT GAVE MR ROBINSON LITTLE MORE THAN HE WAS ENTITLED TO UNDER EXISTING POLICY BESIDES THE 100000 OPTIONS HE ALSO FORFEITED BECAUSE THEY TOO WERE NOT YET VESTED 20314 SHARES OF RESTRICTED STOCK AND A PORTION OF LAST YEAR'S LONGTERM 480000 INCENTIVE AWARD MOST OF HIS CONTINUED TWO YEARS SALARY IS NORMAL SEVERANCE FOR HIS TENURE WITH THE COMPANY THE REST IS TO KEEP HIM FROM COMPETING SOME OF HIS VESTED RIGHTS WOULD BE FORFEITED IF HE ESTABISHED OR JOINED A COMPETING COMPANY WITHIN TWO YEARS AS WELL HE DIDN'T GET ANYWHERE NEAR WHAT HE WANTED SAID MR CLARK THE FORMER CHAIRMAN WHO IS KNOWN TO HAVE SIDED WITH DIRECTORS CALLING FOR MR ROBINSON'S REPLACEMENT HE WANTED A VERY LONGTERM AGREEMENT AND THINKS HE WAS BADLY TREATED MR ROBINSON DECLINED TO COMMENT IT WASN'T CLEAR WHETHER MR ROBINSON HAD ORIGINALLY SOUGHT A LONGER CONSULTING ARRANGEMENT THAN THE THREE YEARS HE SUBMITTED TO THE COMPENSATION COMMITTEE FOR CONSIDERATION THE BUSINESS SCHOOL CHAIR WASN'T PART OF THE WISH LIST HE SUBMITTED BUT SURFACED WHEN HE WAS ASKED IF THERE WAS ANYTHING ELSE HE WOULD LIKE A PERSON CLOSE TO THE BOARD SAID TO BE SURE MR ROBINSON STILL WILL RECEIVE A PRO FORMA 730000 ANNUAL PENSION PLUS MEDICAL AND INSURANCE BENEFITS AN OFFICE SECRETARY AND USE OF COMPANY CARS UNTIL SEPTEMBER OF NEXT YEAR AND VESTED OPTIONS RIGHTS TO BUY MORE THAN 700000 SHARES IT WAS UNCLEAR HOWEVER IF THE EXERCISE PRICE OF MOST OF THE OPTIONS IS BELOW THE CURRENT PRICE OF 2450 A SHARE OF THE 150000 OPTIONS FOR 1992 HE WOULD HAVE BEEN ENTITLED TO HE GETS TO KEEP ONLY 50000 FOR EXERCISE IN THREE YEARS AT 21375 A SHARE MR ROBINSON WASN'T GIVEN THE RIGHT TO BUY THE MUSEUM TOWER APARTMENT FOR WHICH HE PAID 156787 IN RENT LAST YEAR THE SHAREHOLDER PRESSURE WHICH LED TO THE RESIGNATION OF A NUMBER OF CHIEF EXECUTIVES OF MAJOR COMPANIES THIS YEAR HAS TENDED TO MAKE COMPENSATION PACKAGES LESS GENEROUS THAN BEFORE SAY THE BENEFITS EXPERTS BUT IN THE CASES OF ROBERT STEMPEL OF GENERAL MOTORS CORP WHO REMAINS A CONSULTANT ON A YEARTOYEAR BASIS AT AN UNDISCLOSED SALARY JOHN AKERS OF INTERNATIONAL BUSINESS MACHINES CORP AND PAUL LEGO AT WESTINGHOUSE ELECTRIC CORP THERE DOESN'T APPEAR TO BE SUCH A REFUTATION OF PAST COMPANY POLICY OR AS FINE A POINT MADE OF KEEPING BENEFITS TO A MINIMUM IN NOTING WHY MR ROBINSON'S BONUS FOR LAST YEAR WAS 650000 INSTEAD OF THE TARGETED 925000 THE PROXY STATEMENT SAID THE AWARD REFLECTED A SHORTFALL IN MEETING TARGETED FINANCIAL NET INCOME AND RETURN ON EQUITY GOALS FOR THE COMPANY THE BOARD ACCORDING TO THE PROXY STATEMENT ALSO DECIDED LAST MONDAY TO DIVIDE ITS EXECUTIVE AND FINANCE COMMITTEE SO A SEPARATE SIXPERSON EXECUTIVE COMMITTEE COULD MEET ON BOARD MEETING DAYS WITH MR GOLUB WHO HEADS THE COMMITTEE TO DISCUSS OPERATIONS THE COMMITTEE WHICH WOULD ALSO ACT ON EMERGENCY ISSUES WHEN A ROUNDUP OF THE FULL BOARD WASN'T POSSIBLE WAS FORMED AT THE BEHEST OF MR GOLUB AND RICHARD FURLAUD THE COMPANY'S NEWLY ELECTED CHAIRMAN TO WORK WITH THEM IN MANAGING THE COMPANY IRA MILLSTEIN A NEW YORK LAWYER WHO IS AN EXPERT ON CORPORATE GOVERNANCE WAS RETAINED BY AMERICAN EXPRESS TO WORK ON ISSUES REPORTED IN THE PROXY STATEMENT ACCORDING TO A PERSON CLOSE TO THE BOARD 9303010182 930301 BCH TO SELL AFFILIATE TO BANCO 21 REPORTS PROFIT FELL 22 FOR '91 SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S BANCO CENTRAL HISPANO PLANS TO SELL ITS REGIONAL AFFILIATE BANCO GALLEGO TO A THIRD SPANISH BANK BANCO 21 FOR 19 BILLION PESETAS 1614 MILLION IN A STATEMENT RELEASED LATE THURSDAY BCH SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH BANCO 21 BUT NOTED THAT THE SALE REQUIRES BANK OF SPAIN APPROVAL BANCO GALLEGO HAS 700 EMPLOYEES AND A NETWORK OF 150 BRANCHES THROUGHOUT THE NORTHERN REGION OF GALICIA BCH SAID SEPARATELY BCH SAID NET CONSOLIDATED PROFIT DROPPED 22 TO 526 BILLION PESETAS IN 1992 FROM 6736 BILLION PESETAS IN 1991 BCH SAID THE DROP IN NET PROFIT WAS DUE FUNDAMENTALLY TO THE SHARP INCREASE IN PROVISIONING AND AMORTIZATIONS MADE BY THE BANK LAST YEAR HIGHER PROVISIONING AND AMORTIZATIONS FORM PART OF A POLICY OF PRUDENCE AND WRITEDOWNS ADOPTED BY THE GROUP GIVEN THE DETERIORATION OF THE ECONOMIC SITUATION AND THE INCREASE IN DELINQUENCY BCH SAID AMORTIZATIONS GREW 22 TO 2499 BILLION PESETAS IN 1992 FROM 2052 BILLION PESETAS THE PREVIOUS YEAR BCH SAID PROVISIONING AND WRITEDOWNS JUMPED BY 40 TO 8648 BILLION PESETAS IN 1992 FROM 6165 BILLION PESETAS IN 1991 OPERATING PROFIT EDGED UP 079 TO 41576 BILLION PESETAS IN 1992 FROM 41250 BILLION PESETAS IN 1991 WHILE OPERATING COSTS GREW 45 TO 28053 BILLION PESETAS FROM 26854 BILLION PESETAS IN 1991 BCH SAID HIGHER TAXES AS WELL AS THE TRANSITORY EFFECTS OF THE INEVITABLE OVERLAPPING THAT RESULTED FROM THE MERGER PUSHED UP OPERATING COSTS BCH WAS CREATED IN 1991 THROUGH THE MERGER OF BANCO CENTRAL AND BANCO HISPANOAMERICANO THE BANK SAID IT HAS INTRODUCED A RIGOROUS PROGRAM OF INTEGRATION PRODUCTIVITY AND COSTCUTTING TO LOWER OPERATING COSTS THE EFFECTS OF THE MEASURES WILL BEGIN TO BE NOTED IN 1993 THE BANK ADDED 9303010181 930301 LESLIE FAY NOW EXPECTS TO POST '92 LOSS OF 137 MILLION WILL RESTATE '91 RESULTS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LESLIE FAY CO WHICH PREVIOUSLY REPORTED 1992 EARNINGS OF MORE THAN 23 MILLION SAID IT EXPECTS TO INSTEAD REPORT A LOSS OF ABOUT 137 MILLION FOR THE YEAR AND RESTATE ITS EARNINGS FOR 1991 FOR 1991 THE COMPANY SAID IT EXPECTS TO REPORT NET INCOME OF ABOUT 17 MILLION OR 40 LESS THAN IT PREVIOUSLY DISCLOSED LESLIE FAY SAID IT HOPES TO RELEASE THE NEW AUDITED RESULTS FOR BOTH YEARS IN ABOUT FOUR WEEKS LESLIE FAY EARLIER DISCLOSED THAT THE COMPANY'S CORPORATE CONTROLLER DONALD KENIA REVEALED ON JAN 29 DURING THE COMPANY'S YEAREND AUDIT THAT HE AND OTHER EMPLOYEES HAD MADE FALSE FINANCIAL ENTRIES INTO LESLIE FAY'S RECORDS THAT INFLATED EARNINGS IN 1991 AND 1992 THE COMPANY HAS BEEN CONDUCTING AN INTERNAL INVESTIGATION JOHN POMERANTZ LESLIE FAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS MAINTAINED THAT NEITHER HE NOR OTHER COMPANY OFFICIALS INCLUDING PAUL POLISHAN CHIEF FINANCIAL OFFICER HAD ANY KNOWLEDGE OF THE ACCOUNTING FRAUD UNTIL MR KENIA'S CONFESSION THE WOMEN'S APPAREL MAKER FRIDAY DISCLOSED PRELIMINARY UNAUDITED RESULTS FOR 1991 AND 1992 WHICH REFLECT WHAT IT CALLED THE REVERSAL OF UNSUPPORTED ENTRIES IN THE COMPANY'S RECORDS THE ESTIMATES WERE DISCLOSED IN ORDER TO RELIEVE SOME OF THE CONCERN EXPRESSED BY OUR LENDERS OUR TRADE CREDITORS OUR CUSTOMERS AND OUR SHAREHOLDERS ABOUT OUR FINANCIAL RESULTS AND THE OUTCOME OF THE INVESTIGATION MR POMERANTZ SAID IN A STATEMENT BASED ON THE PRELIMINARY ESTIMATES LESLIE FAY SAID IT EXPECTS TO REPORT A 1992 NET LOSS OF ABOUT 137 MILLION OR 72 CENTS A SHARE ON SALES OF 7774 MILLION THE AUDITED 1992 RESULTS WILL INCLUDE AN UNSPECIFIED ONETIME RESTRUCTURING CHARGE ASSOCIATED PRIMARILY WITH THE COSTS OF THE INVESTIGATION AND AUDIT FOR 1991 THE COMPANY EXPECTS TO POST NET OF 17 MILLION OR 91 CENTS A SHARE ON SALES OF 8366 MILLION THE COMPANY SAID IT DOESN'T EXPECT TO RESTATE THE SALES FOR EITHER YEAR LESLIE FAY SAID THE REVISED ESTIMATES ARE BASED ON REPORTS FROM ARTHUR ANDERSEN & CO WHICH IS CONDUCTING AN AUDIT ALONGSIDE BDO SEIDMAN LESLIE FAY'S OUTSIDE AUDITORS BDO SEIDMAN HAS WITHDRAWN ITS OPINION ON THE COMPANY'S 1991 FINANCIAL STATEMENTS A BDO SEIDMAN SPOKESMAN SAID THE ESTIMATES ARE BASED ON AN APPROXIMATION OF THE INFORMATION CURRENTLY AVAILABLE AND ARE SUBJECT TO AUDIT ADJUSTMENT IN THE STATEMENT MR POMERANTZ SAID HE WAS DISAPPOINTED WITH THE RESULTS WHICH HE BLAMED ON EROSIONS IN GROSS MARGINS AND INCREASES IN OPERATING EXPENSES HE ADDED HAD THE FALSE ENTRIES NOT BEEN MADE AND THE SENIOR MANAGEMENT BEEN FURNISHED WITH ACCURATE FINANCIAL INFORMATION DURING THE YEAR WE COULD HAVE TAKEN STEPS TO IMPROVE THE SITUATION INDUSTRY ANALYSTS WHO FOLLOW LESLIE FAY EXPRESSED SURPRISE AT THE MAGNITUDE OF THE DIFFERENCE BETWEEN THE COMPANY'S PREVIOUSLY REPORTED EARNINGS AND THE CURRENT ESTIMATES FOR BOTH 1991 AND 1992 EVEN THOUGH LESLIE FAY WAS FORCED TO TAKE HEAVIERTHANUSUAL MARKDOWNS TO MOVE ITS MERCHANDISE AT WHOLESALE AND RETAIL IN THE PAST YEAR ANALYSTS SAID THAT THE SIGNIFICANT DROP IN THE COMPANY'S GROSS MARGINS RAISED QUESTIONS ABOUT THE QUALITY OF THE COMPANY'S EARNINGS ANALYSTS NOW ESTIMATE THAT LESLIE FAY'S GROSS MARGINS FOR 1992 WERE CLOSER TO ABOUT 21 INSTEAD OF THE 31 THAT THE COMPANY HAD REPORTED ONE ANALYST WHO ASKED NOT TO BE IDENTIFIED SPECULATED YOU WONDER HOW MUCH IT COST THEM TO GET THEIR SALES AND HOW LONG IT WILL TAKE FOR THEM TO GET BACK INTO NORMAL GROSS MARGINS MOREOVER THE ANALYST ADDED YOU WONDER HOW TOP MANAGEMENT DIDN'T EVEN SUSPECT THAT THE COMPANY WAS LOSING MONEY IF THEY WERE GIVING AWAY ALL THOSE SALES IN NEW YORK STOCK EXCHANGE TRADING LESLIE FAY SHARES CLOSED AT 6 UP 875 CENTS 9303010180 930301 EXAMINERS CRUNCH CREDIT BY DAVID S BIZER PRESIDENT CLINTON THIS WEEK PLANS TO ANNOUNCE NEW INITIATIVES TO INCREASE BANK LENDING BUT MR CLINTON IS ON THE WRONG TRACK IF HE INTENDS TO DO THIS THROUGH AN EXCLUSIVE FOCUS ON COMMUNITY INVESTMENT OR A COMMANDANDCONTROL EFFORT TO PUSH THE BANKS INTO LENDING TO ALLEVIATE THE CREDIT CRUNCH HE NEEDS TO REMOVE THE UNDUE INTERFERENCE IN LENDING DECISIONS BY EXAMINERS BANK EXAMINERS IN FACT PLAYED A LARGER ROLE THAN HAS BEEN RECOGNIZED IN THE CREDIT CRUNCH IN LATE 1989 AND EARLY 1990 BANK REGULATION TIGHTENED IN THREE IMPORTANT WAYS FIRST BANK REGULATORS IN 1989 ISSUED GUIDELINES TO IMPLEMENT A RISKWEIGHTED CAPITAL MEASUREMENT SYSTEM PROPOSED IN 1988 BY THE BASEL COMMITTEE ON BANKING REGULATIONS AND SUPERVISORY PRACTICES THE INTERNATIONAL AGREEMENT KNOWN AS THE BASEL ACCORD ESTABLISHED RISK WEIGHTS FOR DIFFERENT CATEGORIES OF ASSETS AND REQUIRED A MINIMUM RATIO OF CAPITAL TO RISKWEIGHTED ASSETS OF 8 BY THE END OF 1992 SECOND US BANK REGULATORS IN 1990 INTRODUCED A SUPPLEMENTARY NEW CAPITAL REQUIREMENT THAT ALLOWED BANK EXAMINERS TO DETERMINE HOW MUCH CAPITAL A BANK MUST HOLD PREVIOUSLY MOST BANKS' CAPITAL REQUIREMENT WAS A FLAT 6 A FIGURE THAT DID NOT DEPEND ON THE VIEWS OF BANK EXAMINERS THIRD REGULATORY OVERSIGHT BECAME MORE VIGOROUS AFTER THE SAVINGS AND LOAN DEBACLE BANK EXAMINERS RAISED RISK RATINGS BY MORE STRICTLY SCRUTINIZING BANK BALANCE SHEETS TO THE SAME BALANCESHEET FIGURES THEY ASSIGNED LOWER RATINGS THAN THEY WOULD HAVE EARLIER THE COINCIDENCE OF TWO EVENTS SHARPENED THE FOCUS ON THE NEW REGULATORY ATMOSPHERE THE FIRST WAS THE RECESSION WHICH OFFICIALLY ENDED IN MARCH 1991 BUT FROM WHICH THE ECONOMY LANGUISHED LONG ENOUGH FOR THE INCUMBENT TO LOSE THE ELECTION THE SECOND WAS THE STEEP DROP IN COMMERCIAL AND INDUSTRIAL LENDING BY BANKS A DROP THAT BEGAN PRIOR TO THE RECESSION AND CONTINUED AFTER IT FROM DECEMBER 1989 TO AUGUST 1992 COMMERCIAL AND INDUSTRIAL LENDING FELL 8 OR 53 BILLION A DEBATE CONTINUES TO RAGE OVER THE CAUSES OF THE CREDIT CRUNCH BECAUSE IT HAS BEEN DIFFICULT TO UNTANGLE THE EFFECTS OF THE RECESSION AND REGULATION ANALYSIS HAS YIELDED TO ANECDOTE AND METAPHOR THE PHRASE THE PENDULUM HAS SWUNG TOO FAR IN THE OPPOSITE DIRECTION HAS BECOME THE BATTLE CRY AND ONLY WEAPON OF THOSE SEEKING TO QUELL OVERZEALOUS REGULATORS SOME RECENT NEW DATA MAY PROVIDE A REAL WEAPON IT IS CLEAR THAT THE BASEL ACCORD'S IMPLEMENTATION ACCOMPANIED DRAMATIC CHANGE IN THE BANKING INDUSTRY IN DECEMBER 1988 SHORTLY AFTER THE BASEL ACCORD WAS ANNOUNCED 65 OF LARGE BANK ASSETS WERE HELD BY BANKS THAT FAILED TO MEET BASEL ACCORD STANDARDS THE BALANCE SHEETS OF LARGE BANKS CHANGED ENORMOUSLY SO THAT BY JUNE 1992 NO LARGE BANKS FAILED TO MEET BASEL STANDARDS BUT WAS IT THE BASEL ACCORD ALONE THAT LED BANKS TO SHUN LOANS AND BUY TREASURY BONDS IF SO THEN BANKS THAT FAILED TO MEET THE STANDARDS AT THE TIME THE ACCORD WAS ANNOUNCED 1988 WOULD HAVE INVESTED MORE HEAVILY IN TREASURYS AND LESS HEAVILY IN COMMERCIAL AND INDUSTRIAL LOANS THAN BANKS THAT MET THEM EARLY THE EVIDENCE IMPLICATES BASEL ONLY PARTIALLY FOR UNDERCAPITALIZED BANKS COMMERCIAL AND INDUSTRIAL LOANS DECLINED TO A 17 SHARE OF ASSETS IN JUNE 1992 FROM AN AVERAGE SHARE OF 21 IN 1988 THESE BANKS' HOLDINGS OF TREASURY BONDS INCREASED TO 7 OF ASSETS UP FROM 4 FOR WELLCAPITALIZED BANKS THE SHIFT IN TREASURY BONDS WAS LESS DRAMATIC TO 11 FROM 10 BUT SOME OF THE SAME EVIDENCE WORKS AGAINST THE ARGUMENT THAT THE BASEL ACCORDS WERE SOLELY TO BLAME FOR THE CREDIT CRUNCH A BROADER MEASURE OF GOVERNMENT SECURITIES THAT INCLUDES AGENCY MORTGAGEBACKED SECURITIES AND MUNICIPAL BONDS INCREASED MORE IN WELLCAPITALIZED BANKS THAN IN UNDERCAPITALIZED ONES HOWEVER ALL OF THE ADJUSTMENT DID NOT COME ON THE ASSET SIDE OF BANK BALANCE SHEETS THE MOST STRIKING DIFFERENCE BETWEEN THE TWO GROUPS OF BANKS IS THAT THE RATIO OF EQUITY TO TOTAL UNWEIGHTED ASSETS INCREASED TO 7 FROM 5 IN UNDERCAPITALIZED BANKS BUT REMAINED AT 8 IN WELLCAPITALIZED BANKS OF COURSE THESE COMPARISONS MAY UNDERSTATE THE EFFECT OF BASEL IF THE NEW CAPITAL REGIME INDUCED EVEN WELLCAPITALIZED BANKS TO INCREASE FURTHER THEIR RATIO OF CAPITAL TO RISKWEIGHTED ASSETS BUT AN ANALYSIS OF EXAMINERS' RISKRATINGS CRITERIA SHOWS A MUCH LARGER ROLE WAS PLAYED BY BANK EXAMINERS IN THE FIELD EXAMINERS BEGAN INCREASING THEIR STANDARDS FOR RATING BANK RISK IN 1989 BECAUSE THE AMOUNT OF LENDING BY BANKS IS TYPICALLY INVERSELY RELATED TO RISK RATINGS THE HIGHER A BANK'S RISK RATING THE LESS IT LENDS THE EFFECT OF THE INCREASED VIGILANCE WAS TO DECREASE LENDING FROM BANK CALL REPORTS ACCOUNTING REPORTS BANKS MAKE TO REGULATORS AND OTHER REGULATORY DATA I HAVE ESTIMATED THE AMOUNT OF ADDITIONAL LENDING THAT WOULD HAVE OCCURRED HAD BANK EXAMINERS USED PRE1989 RISK RATING CRITERIA WHEN THEY ASSESSED POST1989 BANK RISK THE DIFFERENCE BETWEEN THIS LEVEL OF LENDING AND THE ACTUAL LEVEL OF LENDING CAN BE DESCRIBED AS THE LENDING GAP COMMERCIAL AND INDUSTRIAL LOANS COMMERCIAL MORTGAGES CONSUMER LOANS AND SOME RESIDENTIAL LOANS WOULD ALL HAVE BEEN HIGHER IF EXAMINATION STANDARDS HAD REMAINED UNCHANGED BY MID1991 THERE WOULD HAVE BEEN 421 BILLION MORE TOTAL LENDING ACROSS ALL THESE LOAN CATEGORIES THE MATH INCLUDES LOANS RECEIVING 100 BASEL RISK WEIGHT IN BANKS LARGER THAN 100 MILLION THERE WOULD HAVE BEEN AN ADDITIONAL 1553 BILLION IN COMMERCIAL AND INDUSTRIAL LENDING THESE RESULTS DO NOT PROVE THAT IT WAS WRONG FOR BANK REGULATORS TO TIGHTEN THEIR STANDARDS THEY DO HOWEVER SHOW THAT BY JUNE 1992 TIGHTER STANDARDS HAD COST US BUSINESS AND CONSUMERS 81 BILLION IN LOANS UNLIKE BIG FIRMS SMALL BUSINESS IS LARGELY CAPTIVE TO BANKS FOR FUNDS THE SHARP CONTRACTIONARY CHANGE IN REGULATORY POLICY DENIED THE SMALL BUSINESS SECTOR ACCESS TO CREDIT AT A TIME WHEN THE ECONOMY WAS ALREADY WEAKENING FOR OTHER REASONS THE HOPE IS THAT PRESIDENT CLINTON'S CHANGES WILL NOT IN MR CLINTON'S OWN WORDS DO MORE TO STOP PEOPLE FROM MAKING SENSIBLE LOANS MR BIZER IS DEPUTY CHIEF ECONOMIST AT THE SECURITIES AND EXCHANGE COMMISSION 9303010179 930301 POLITICS & POLICY CLINTON'S GOOD COPBAD COP STANCE ON TRADE MIRRORS DIVISIONS WITHIN HIS ADMINISTRATION BY BOB DAVIS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHILE PRESIDENT CLINTON MOVED TO ASSURE THE WORLD THAT HE IS A FREE TRADER HIS ADMINISTRATION WAS SIMULTANEOUSLY PREPARING TO KICK OUT A PILLAR PROPPING UP WORLD TRADE TALKS THIS GOOD COPBAD COP TRADE POLICY IS EMERGING AS THE MARK OF THE NEW ADMINISTRATION PRAISE OPEN MARKETS BUT THREATEN TO RETALIATE AGAINST OTHER COUNTRIES' TRADE PRACTICES WITH TOUGHGUY TACTICS THAT RISK ESCALATION INTO TRADE WARS IN RECENT DAYS BAD COP CLINTON HAS BEEN BLASTING EUROPE'S SUBSIDIES OF THE AIRBUS INDUSTRIE CONSORTIUM PUTTING JAPAN ON NOTICE THAT ITS HUGE TRADE SURPLUS IS UNACCEPTABLE AND MAKING PARTNERS SWEAT OVER THE US COMMITMENT TO RESCUING WORLD TRADE TALKS THEN ON FRIDAY GOOD COP CLINTON DESCRIBED A VISION FOR A GLOBAL ECONOMY IN WHICH OPEN TRADE LEADS THE WAY TO PROSPERITY THE TRUTH OF OUR AGE IS THIS OPEN AND COMPETITIVE COMMERCE WILL ENRICH US AS A NATION THE PRESIDENT PROCLAIMED IN A SPEECH AT AMERICAN UNIVERSITY HERE 30 YEARS AFTER HIS HERO JOHN F KENNEDY USED THE SAME FORUM TO CALL FOR AN END TO CONFRONTATION BETWEEN NUCLEAR POWERS THIS EVOLVING APPROACH TO TRADE REFLECTS DIVISIONS WITHIN THE ADMINISTRATION AS MUCH IT AS DOES DELIBERATE POLICY TREASURY SECRETARY LLOYD BENTSEN AND HIS TOP INTERNATIONAL DEPUTY LAWRENCE SUMMERS PUT THEIR STAMP ON THE PRESIDENT'S TEXT AND PROMOTED IT ABROAD AS EVIDENCE OF MR CLINTON'S FREETRADE LEANINGS BUT MR CLINTON'S BROADSIDES AGAINST AIRBUS SECONDED BY US TRADE REPRESENTATIVE MICKEY KANTOR REFLECT THE VIEWS OF OTHERS THAT MR CLINTON MAY HAVE TO DO WHAT GEORGE BUSH WOULDN'T RETALIATE AGAINST FOREIGN SUBSIDIES AND TRADE PRACTICES BY MIMICKING THEM A PRACTICE ABHORRENT TO FREE TRADERS MR CLINTON'S SPEECH RESONATED AROUND THE WORLD PARTICULARLY IN LONDON WHERE FINANCE MINISTERS FROM THE SEVEN MAJOR INDUSTRIALIZED NATIONS WERE GATHERED IT DEMONSTRATES THE COMMITMENT OF THE UNITED STATES TO FREE TRADE ENTHUSED BRITISH FINANCE MINISTER NORMAN LAMONT YET A CLOSE EXAMINATION OF THE SPEECH ILLUSTRATES ONCE AGAIN MR CLINTON'S SPLIT PERSONALITY ON TRADE TENDENCIES YES TO OPEN MARKETS BUT THE US WILL SAY TO OUR TRADING PARTNERS THAT WE VALUE THEIR BUSINESS MR CLINTON SAID BUT NONE OF US SHOULD EXPECT SOMETHING FOR NOTHING ON TRADE BARRIERS WE WILL CONTINUE TO WELCOME FOREIGN PRODUCTS HE SAID BUT INSIST THAT OUR PRODUCTS BE ABLE TO ENTER THEIR MARKETS ON EQUAL TERMS SIMILARLY WITH INVESTMENT WE WILL WELCOME FOREIGN INVESTMENT IN OUR BUSINESSES HE SAID BUT AS WE WELCOME THAT INVESTMENT WE INSIST THAT OUR INVESTORS SHOULD BE EQUALLY WELCOME IN OTHER COUNTRIES WORLD TRADE TALKS IN GENEVA DISPLAY ALL THE DIFFERENT PARTS OF THE CLINTON TRADE STRATEGY GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS SAYS A GATT DEAL WOULD PROVIDE A 350 BILLION BOOST IN THE YEAR 2000 TO THE WORLD TRADING SYSTEM WHICH NOW TOTALS 34 TRILLION IN HIS SPEECH MR CLINTON AS GOOD COP SAID HE WAS COMMITTED TO A PROMPT AND SUCCESSFUL COMPLETION OF THE ONAGAIN OFFAGAIN NEGOTIATIONS CONDUCTED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT AS BAD COP THE PRESIDENT DIDN'T SAY WHEN HE WOULD ASK CONGRESS TO EXTEND HIS NEGOTIATING AUTHORITY WHICH EFFECTIVELY LAPSES TOMORROW OR FOR HOW LONG WHITE HOUSE OFFICIALS FIGURE THAT LETTING GATT TALKS SLIDE INTO LIMBO FOR A YEAR OR SO PUTS MORE PRESSURE ON EUROPE AND JAPAN THAN PRESSING FOR A QUICK RENEWAL THIS WEEK TWO SENIOR US TRADE OFFICIALS ARE DUE IN GENEVA TO BEGIN INFORMAL GATT TALKS BUT WITHOUT THIS SOCALLED FASTTRACK NEGOTIATING AUTHORITY IN WHICH CONGRESS AGREES TO LIMIT ITSELF TO A YESORNO VOTE US NEGOTIATORS WON'T BE ABLE TO MAKE MUCH PROGRESS THAT'S BECAUSE ALL THE PARTIES REALIZE THAT CONGRESS COULD SIMPLY REWRITE ANY DEAL THAT IS STRUCK MANY IN THE CLINTON ADMINISTRATION SAY TOUGH TACTICS ARE LONG OVERDUE THEY BELIEVE THAT THE REPUBLICANS HAD BECOME TOO PREDICTABLE IN NEGOTIATIONS AND TOO WILLING TO MAKE CONCESSIONS SO CLINTON OFFICIALS ARE TRYING JUST THE OPPOSITE DISTANCING THE US FROM WORLD TRADE TALKS SO THAT OTHERS MAKE CONCESSIONS TO KEEP WASHINGTON INVOLVED YOU WON'T SEE A DEAL UNLESS EUROPE AND JAPAN MAKE SIGNIFICANT CONCESSIONS WARNS A SENIOR US TRADE OFFICIAL CLINTON TACTICS SO FAR CALL FOR A TWOTRACK STRATEGY TRADE OFFICIALS SKETCH OUT A PLAN IN WHICH THEY PLAY COY WITH THE EUROPEANS HOPING THEY'LL GET WORRIED AND COME UP WITH NEW CONCESSIONS AND PUT HEAVIER PRESSURE ON THE JAPANESE THE BUSH ADMINISTRATION GOT INTO TOO MANY STANDOFFS WITH EUROPE AND LEFT JAPAN ALONE THE TRADE OFFICIALS BELIEVE DESPITE THAT COUNTRY'S HUGE TRADE SURPLUSES WITH BOTH REGIONS A VIEW ECHOED BY SOME IN EUROPE THE US AND EUROPEAN COMMUNITY ENGAGE IN MEGAPHONE POLITICS WHERE EACH TRIES TO OUTSHOUT THE OTHER SAYS RAY MACSHARRY WHO RECENTLY RETIRED AS THE EC'S AGRICULTURAL MINISTER BUT THE JAPANESE ARE LAUGHING ALL THE WAY TO THE BANK WHETHER THE ADMINISTRATION STICKS TO THIS PLAN DEPENDS LARGELY ON WHO EMERGES AS THE HEAVYWEIGHT IN SETTING US TRADE POLICY THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL HAS SET UP TWO INTERAGENCY TRADE PANELS WITH OVERLAPPING AGENDAS ONE REVIEWING GATT POLICY IS HEADED BY THE US TRADE REPRESENTATIVE'S OFFICE WHICH IS PUSHING FOR TOUGHGUY TACTICS THE OTHER REVIEWING THE POLICY TOWARD JAPAN IS HEADED BY THE STATE DEPARTMENT WHICH TRADITIONALLY CAUTIONS AGAINST PRESSING JAPAN TOO HARD AND REVIVING FEARS THERE OF WESTERN ENCIRCLEMENT THE TREASURY WHICH TENDS TOWARD THE FREETRADE END OF THE SPECTRUM ALREADY IS USING MR CLINTON'S SPEECH TO CLAIM THE PRESIDENT AS AN ALLY THERE'S NO QUESTION THAT THERE WAS A GROWING CONCERN ABOUT POSSIBLE PROTECTIONISM IN THE US AND THAT SPEECH DID MUCH TO ABATE THAT KIND OF CONCERN A SENIOR US TREASURY OFFICIAL SAID STAGNANT ECONOMIES AND TOUGH COMING ELECTIONS MAKE IT DIFFICULT FOR THE US TO PRESS JAPAN OR EUROPE AS HARD AS SOME CLINTON ADMINISTRATION OFFICIALS MIGHT WANT IN ALL COUNTRIES MAKING TRADE CONCESSIONS FOR A GATT DEAL IS BAD POLITICS IN FRANCE FOR INSTANCE WHICH ALREADY HAS TRIED TO TORPEDO THE TALKS BECAUSE OF AGRICULTURAL ISSUES CONSERVATIVES ARE EXPECTED TO WIN LEGISLATIVE ELECTIONS MARCH 21 THEY MAY BE EVEN LESS WILLING TO MAKE FARM CONCESSIONS THAN THE SOCIALISTS SEIICHIRO NOBORU THE ECONOMIC MINISTER IN JAPAN'S US EMBASSY SAYS DON'T EXPECT MUCH FROM JAPAN EITHER IF WE'RE GOING TO MAKE NEW OFFERS WE'LL ONLY MAKE THEM AT THE END OF THE DAY HE SAYS CITING DOMESTIC POLITICS AS THE REASON FOR THE RECALCITRANCE SHOULD THE CLINTON TRADE TACTICS BACKFIRE THE REVERBERATIONS WOULD BE FELT GLOBALLY IN AN ESCALATING SERIES OF TRADE DISPUTES THE COLLAPSE OF GATT WOULD BOOST THE EMERGENCE OF A PATCHWORK OF INWARDLOOKING TRADE BLOCS IN WHICH MEMBERS LOWER TRADE BARRIERS FOR ONE ANOTHER BUT NOT FOR ANYONE ELSE ALTHOUGH THE EC AND THE STILLUNRATIFIED NORTH AMERICAN FREE TRADE AGREEMENT AREN'T STRUCTURED AS PROTECTIONIST BLOCS WITHOUT A FUNCTIONING GATT SYSTEM THEY COULD BECOME MORE EXCLUSIONARY OTHERS WOULD SCRAMBLE TO FORM THEIR OWN BLOCS OR ATTACH THEMSELVES TO THE EXISTING ONES ALREADY MALAYSIA HAS SOUGHT TO LAUNCH AN ASIAN TRADE BLOC INCLUDING JAPAN BUT EXCLUDING THE US INDIA WORRIED THAT IT MIGHT BECOME ISOLATED HAS BEGUN INTERNAL DISCUSSIONS ON WHETHER TO ALIGN ITSELF SOMEHOW WITH THE EC IF THE NEGOTIATING ROUND FAILS REGIONAL BLOCS WILL ARISE SAYS BK ZUTSHI INDIA'S GATT AMBASSADOR WE'D HAVE TO SEE WHERE OUR PLACE IS IN THE SUN THIS SEEMS TO BE THE SORT OF DEVELOPMENT MR CLINTON AS THE GOOD COP WANTS TO HEAD OFF DEMOCRACY'S PROSPECTS ARE DIMMED ESPECIALLY IN THE DEVELOPING WORLD BY TRADE BARRIERS AND SLOW GLOBAL GROWTH HE SAID IN HIS SPEECH BUT BAD COPS SOMETIMES MISCALCULATE THE CONSEQUENCES OF A BREAKDOWN IN GATT ARE SO DIRE THEY AMOUNT TO THINKING ABOUT THE UNTHINKABLE TRADE EXPERT JOAN SPERO WARNED IN AN SPEECH BEFORE SHE WAS NAMED TO BE THE STATE DEPARTMENT'S TOP ECONOMIC OFFICIAL 9303010178 930301 OTC FOCUS AN ANTIVIRUS CRUSADER GETS INFECTED BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TAKE THAT MCAFEE ASSOCIATES THE DEVELOPER OF ANTIVIRUS SOFTWARE MADE ITS NAME BY STIRRING UP PANIC OVER THE MICHELANGELO COMPUTER VIRUS LAST YEAR BUT NOW THE NEWLY PUBLIC COMPANY IS GETTING A DOSE OF ITS OWN MEDICINE BEARISH INVESTORS ARE SAYING THAT MCAFEE'S SOFTWARE TOO CAN DAMAGE COMPUTERS ALL THIS IS HAPPENING JUST AS SOME MCAFEE CUSTOMERS GEAR UP ONCE AGAIN TO FIGHT MICHELANGELO WHICH WAS PROGRAMMED TO HIT LAST MARCH 6 AND MIGHT REAPPEAR ON ITS ANNIVERSARY THIS SATURDAY THE NASDAQTRADED SHARES OF MCAFEE HAVE BEEN ACTING AS SICKLY AS AN INFECTED PC AFTER TRADING AS HIGH AS 23 1/4 IN THE WAKE OF THE INITIAL PUBLIC OFFERING IN OCTOBER THE STOCK HAS LOST MORE THAN HALF ITS VALUE IT CLOSED AT 9 5/8 FRIDAY DOWN 7/8 A 10 DECLINE FOR THE WEEK BEARISH TRADERS AND RIVAL SOFTWARE COMPANIES HAVE BEEN SPREADING THE WORD THAT THERE'S A BIG PROBLEM WITH MCAFEE'S VAUNTED MICHELANGELO CURE CALLED CLEANUP THEY SAY USERS OF THE CURE INCLUDING THOSE PREPARING FOR THE POSSIBLE REAPPEARANCE OF MICHELANGELO THIS SATURDAY COULD NOT ONLY WIPE OUT MICHELANGELO BUT COULD DAMAGE THEIR COMPUTERS' HARD DISKS IN THE PROCESS MCAFEE CONFIRMS THERE'S A PROBLEM BUT ARGUES THAT THE SCOPE IS SMALL IN A MESSAGE CIRCULATED ON COMPUTER BULLETIN BOARDS LAST WEEK THE COMPANY'S HEAD OF TECHNICAL SUPPORT ARYEH GORETSKY SAID THE COMPANY HAS BEEN MADE AWARE OF A POSSIBLE PROBLEM WITH REMOVING THE MICHELANGELO VIRUS WITH CLEANUP HE ADDS THIS PROBLEM DOES NOT OCCUR CONSISTENTLY AND WE ARE INVESTIGATING IT NOW HE SPELLS OUT AN ALTERNATE WAY TO RUN THE PROGRAM SHORTSELLERS WHO BET ON STOCK PRICES TO DECLINE HAVE SEIZED ON THE MESSAGE AS PROOF THAT MCAFEE HAS A DISASTER ON ITS HANDS NOT SO INSISTS MCAFEE'S 47YEAROLD CHAIRMAN JOHN MCAFEE THAT'S UTTER NONSENSE HE SAYS FROM COMPANY HEADQUARTERS IN SANTA CLARA CALIF YOU REMEMBER MR MCAFEE HE WAS A WIDELY QUOTED MEDIA STAR LAST YEAR AS DDAY FOR THE MICHELANGELO VIRUS APPROACHED HE ESTIMATED THE VIRUS WAS INSIDE AS MANY AS 15 MILLION PERSONAL COMPUTERS THE PROBLEM TURNED OUT TO BE MINOR FOR THE WORLD'S COMPUTERS THOUGH MR MCAFEE CLAIMS THAT'S ONLY BECAUSE HE DID SUCH A GOOD JOB OF GETTING PEOPLE PREPARED ACCORDING TO MR MCAFEE PEOPLE ARE TAKING THE GORETSKY MEMO TOO SERIOUSLY HE SAYS CLEANUP LIKE ANY OTHER COMPUTER MEDICINE HAS ALWAYS CAUSED SIDE EFFECTS IN A LIMITED NUMBER OF CASES HE SAYS MR GORETSKY WAS SIMPLY TRYING TO RESPOND TO AN INQUIRY OVER THE ELECTRONIC BULLETIN BOARD THE SOFTWARE CERTAINLY DOESN'T KILL THE SYSTEM IT DOESN'T DO ANY IRREPARABLE DAMAGE IT'S MORE OF A MINOR NUISANCE THAN ANYTHING ELSE HE SAYS MR MCAFEE ADDS THAT DESPITE WHAT OTHERS SAY THE PERCENTAGE OF PROBLEMS WITH CLEANUP IS SMALL PROBABLY ONE IN 500 AFFECTED SYSTEMS AND THAT'S BETTER THAN LETTING A VIRUS RUN WILD HE SAYS IN ANY CASE MR MCAFEE SAYS THE CLEANUP PROBLEM ISN'T MATERIAL TO HIS COMPANY WHICH IS WHY IT WASN'T DISCLOSED MORE PUBLICLY THAT EXPLANATION HAS BEEN CREDIBLE ENOUGH FOR SOME ANALYSTS CLOSE TO THE COMPANY ALEX BROWN & SONS A COUNDERWRITER OF THE MCAFEE IPO REITERATED A BUY RATING ON THE STOCK FRIDAY MCAFEE HOWEVER IS SUDDENLY COMING OUT WITH NEW VERSIONS OF CLEANUP AND OTHER ANTIVIRAL SOFTWARE PRODUCTS ACCORDING TO ANALYSTS NEITHER MR MCAFEE NOR DANIEL MCCAMMON THE COMPANY'S CHIEF FINANCIAL OFFICER VOLUNTEERED THAT INFORMATION DURING INTERVIEWS ON FRIDAY REACHED LATER MR MCCAMMON CALLS THE NEW VERSIONS PART OF NORMAL MONTHLY REVISION OF PRODUCTS WE DO COINCIDENTALLY IT ALSO HAPPENS TO FIX THAT UNIQUE PROBLEM IN CLEANUP HE SAYS SUCH EXPLANATIONS MAY NOT EASILY BANISH THE WEAKNESS IN MCAFEE SHARES BECAUSE INVESTORS ARE TAKING NO PRISONERS WITH TECHNOLOGY STOCKS EVEN BEFORE THE CONSTERNATION OVER THE CLEANUP SOFTWARE THAT SURFACED LATE LAST WEEK MCAFEE SHARES HAD BEEN UNDER PRESSURE MCAFEE STOCK TUMBLED 27 OVER TWO DAYS IN REACTION TO THE COMPANY'S ANNUAL EARNINGS REPORT ON JAN 27 THAT SHOWED ONTARGET EARNINGS BUT LOWERTHANEXPECTED BOOKINGS FOR THE COMPANY'S ANTIVIRUS SOFTWARE MCAFEE IS AMONG SEVERAL SINGLEPRODUCT TECHNOLOGY COMPANIES THAT SAVVY INVESTORS HAVE SOURED ON LATELY IN FAVOR OF COMPANIES WITH A BROADER ARRAY OF PRODUCTS TO FALL BACK ON ANOTHER DEVELOPMENT WEIGHING ON MCAFEE IS A FEDERAL JUDGE'S RULING IN A LAWSUIT THAT ACCUSES MCAFEE OF RAISING A FALSE ALARM OVER A VIRUS IN THE PRELIMINARY RULING ISSUED IN DECEMBER THE JUDGE TOLD MCAFEE TO STOP DISTRIBUTION OF SOFTWARE PRODUCTS THAT FALSELY IDENTIFY IMAGELINE INC'S PICTUREPAK SOFTWARE AS INFECTED WITH A COMPUTER VIRUS A TRIAL IN THE CASE IS DUE TO START LATER THIS MONTH IMAGELINE HAS BEEN HAPPILY CIRCULATING WORD TO REPORTERS ABOUT MCAFEE'S PROBLEMS WITH ITS ANTIMICHELANGELO PROGRAM BY THE WAY NEITHER MR MCAFEE NOR OTHER MICHELANGELO WATCHERS EXPECT ANYTHING NEAR THE HYSTERIA OVER THE FAMED VIRUS THIS TIME AROUND THERE ISN'T ANY SIGN OF A FRESH INFECTION OF THE VIRUS DAVID CROSS OF INTERNATIONAL BUSINESS MACHINES' HIGHINTEGRITY COMPUTING LABORATORY WHICH TRACKS VIRUSES AND DEVELOPS IT OWN ANTIVIRUS SOFTWARE SAYS MICHELANGELO ISN'T EXTINCT BUT HE SAYS THERE WILL PROBABLY BE ONLY LOCALIZED OUTBREAKS ON SATURDAY AT SOME COMPANIES THAT HAVEN'T KEPT THEIR COMPUTERS CLEAN HE ADDS THE BIG MESSAGE IS IF YOU'VE BEEN TAKING CARE OF YOURSELF YOU'LL PROBABLY BE FINE OVERTHECOUNTER STOCKS POSTED THEIR THIRD STRAIGHT GAIN IN A SESSION DOMINATED BY NEWS OF A DEVASTATING EXPLOSION IN LOWER MANHATTAN THAT CAUSED DEATH AND WIDESPREAD INJURIES THE MASSIVE BLAST AT THE WORLD TRADE CENTER CAUSED POWER OUTAGES AND SMOKE RESULTING IN THE CLOSING OF MORE THAN A DOZEN TRADING DESKS IN THE COMPLEX THE ABSENCE OF THOSE DESKS MADE AN ALREADY SLOW FRIDAY SESSION EVEN QUIETER SAID JOHN GIESEA HEAD OF NASDAQ TRADING AT ADVEST INC THE NASDAQ COMPOSITE INDEX CLOSED WITH A GAIN OF 370 OR 055 TO 67077 ADVANCING ISSUES OUTNUMBERED DECLINERS 1552 TO 1045 ON TOTAL VOLUME OF 2173 MILLION SHARES DOWN FROM THURSDAY'S 2594 MILLION ALTHOUGH MANY HAD EXPECTED BIOTECHNOLOGY LEADER AMGEN'S DISAPPOINTING EARNINGS PROJECTION TO DEPRESS THE MARKETMUCH AS NEGATIVE NEWS FROM SYNERGEN HAD MONDAYPRICES ADVANCED SHARES OF THOUSAND OAKS CALIFBASED AMGEN WHICH FELL 9 1/4 OR 20 ON THURSDAY EASED 3/4 FRIDAY TO 36 1/4 OTHER BIOTECHNOLOGY ISSUES WERE MOSTLY HIGHER BIOGEN OF CAMBRIDGE MASS ADDED 3/4 TO 30 CHIRON OF EMERYVILLE CALIF CLIMBED 3/4 TO 49 1/2 INVESTORS AND ANALYSTS REEVALUATED THE OUTLOOK FOR COMPUTER DISKDRIVE MAKERS FOLLOWING AN EARNINGS WARNING LATE THURSDAY FROM NEW YORK STOCK EXCHANGELISTED CONNER PERIPHERALS WHICH SAID ITS FIRSTQUARTER EARNINGS WILL FALL SHORT OF WALL STREET ESTIMATES THE SAN JOSE CALIF CONCERN BLAMED AN EROSION IN THE PRICES IT IS ABLE TO FETCH FOR ITS LOWEREND PRODUCTS THE NEWS PROMPTED ANALYSTS TO LOWER THEIR EARNINGS ESTIMATES FOR SEVERAL DISKDRIVE COMPANIES QUANTUM CORP AND SEAGATE TECHNOLOGY WERE DOWNGRADED ALONG WITH CONNER BY SHEARSON LEHMAN BROTHERS QUANTUM SLIPPED 1 5/8 TO 15 AND SEAGATE DROPPED 1 TO 15 5/8 ON THE BIG BOARD CONNER'S STOCK SKIDDED 1 3/8 TO 16 7/8 TWO NEW ISSUES ADVANCED BUT A THIRD LOST GROUND SHARES OF TECNOMATIX TECHNOLOGIES AN ISRAELI SOFTWARE COMPANY THAT IS MAJORITYOWNED BY OSHAP TECHNOLOGIES ENDED AT 13 UP FROM A 12ASHARE OFFERING PRICE WHILE NATHAN'S FAMOUS A WESTBURY NY HOT DOG CHAIN JUMPED TO 10 3/8 FROM ITS 9 OFFERING LEVEL BUT WASHINGTON HOMES EASED TO 8 3/4 FROM ITS OFFERING PRICE OF 9 THE COMPANY BUILDS SINGLEFAMILY DETACHED HOMES TOWN HOUSES AND CONDOMINIUMS IN THE WASHINGTONBALTIMORE AREA 9303010177 930301 FINANCING BUSINESS PETROLEUM HEAT & POWER CO PETROLEUM HEAT & POWER CO A HOME HEATING OIL DISTRIBUTOR BASED IN STAMFORD CONN RAISED ITS CLASS B COMMON STOCK QUARTERLY DIVIDEND TO 47 CENTS A SHARE FROM 279 CENTS A SHARE THE DIVIDEND IS PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 15 9303010176 930301 MIDWEST STOCK EXCHANGE RESULTS CHICAGO THE MIDWEST STOCK EXCHANGE REPORTED HIGHER OPERATING PROFIT BUT A NET LOSS FOR 1992 AFTER TWO SPECIAL CHARGES THE LOSS OF 58 MILLION INCLUDED CHARGES RELATED TO POSTRETIREMENT MEDICAL EXPENSES ACCOUNTING PROCEDURES AND A RESTRUCTURING PROVISION COMPARED WITH A YEAREARLIER LOSS AFTER CHARGES OF 32 MILLION PRETAX OPERATING PROFIT LAST YEAR WAS 3 MILLION COMPARED WITH 299000 PREVIOUSLY TRADING VOLUME IN 1992 SET A RECORD OF 58 MILLION TRADES WHILE TOTAL SHARE VOLUME WAS 297 BILLION THE SECOND BEST EVER THE EXCHANGE SAID THE DOLLAR VALUE OF SHARES TRADED TOTALED 84 BILLION WHILE THE AVERAGE DAILY SHARE VOLUME EXCEEDED 117 MILLION SHARES 9303010175 930301 CANADIAN BUSINESS OUTLAYS OTTAWA CANADIAN BUSINESS INTENDS TO INCREASE SPENDING ON PLANT AND EQUIPMENT 25 THIS YEAR TO 7088 BILLION CANADIAN DOLLARS US5661 BILLION FROM C6917 BILLION IN 1992 STATISTICS CANADA A GOVERNMENT AGENCY SAID THE 1993 PROJECTION BASED ON A RECENT SURVEY FOLLOWS BUSINESS CAPITAL SPENDING DECLINES OF 104 IN 1992 AND 37 IN 1991 MANUFACTURERS WHO CUT CAPITAL OUTLAYS BY 197 LAST YEAR ARE EXPECTED TO INCREASE THEIR SPENDING BY 48 THIS YEAR 9303010174 930301 WHO'S NEWS DELL COMPUTER CORP DELL COMPUTER CORP AUSTIN TEXAS CLAUDINE B MALONE 56 YEARS OLD WAS ELECTED TO THE BOARD INCREASING THE BOARD TO EIGHT MEMBERS MS MALONE IS PRESIDENT OF HER OWN CONSULTING FIRM IN MCLEAN VA 9303010173 930301 WHO'S NEWS TECHSYM CORP TECHSYM CORP HOUSTON RAY F THOMPSON WAS NAMED TO THE ADDITIONAL POSITION OF VICE PRESIDENT MR THOMPSON 56 YEARS OLD IS THE TREASURER CONTROLLER AND CHIEF FINANCIAL OFFICER OF THE ELECTRONICS MANUFACTURING CONCERN 9303010172 930301 WHO'S NEWS DIED ARTHUR J SANTRY JR 74 FORMER CHIEF EXECUTIVE OFFICER OF COMBUSTION ENGINEERING INC WEDNESDAY IN GREENWICH CONN OF CANCER 9303010171 930301 WHO'S NEWS RADIUS INC RADIUS INC SAN JOSE CALIF CHARLES BERGER 39 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS COMPUTER PRODUCTS COMPANY MR BERGER WHO IS CURRENTLY A SENIOR VICE PRESIDENT OF CLARIS CORP WILL ASSUME HIS NEW DUTIES ON MARCH 22 RADIUS SAID MR BERGER SUCCEEDED MICHAEL BOICH WHO WILL CONTINUE HIS DUTIES AS CHAIRMAN 9303010170 930301 WHO'S NEWS ANCHOR BANCORP INC ANCHOR BANCORP INC HEWLETT NY THIS THRIFT SAID NORMAN SMITH 46 YEARS OLD WAS ELECTED TO ITS BOARD RAISING THE NUMBER OF DIRECTORS TO 12 FROM 11 DR SMITH IS PRESIDENT OF WAGNER COLLEGE STATEN ISLAND NEW YORK 9303010169 930301 WORLD MARKETS NEW ZEALAND STOCKS BOLSTERED BY SOLID OUTLOOK FOR ECONOMY ARE SEEN MAKING MEASURED GAINS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS WHO BELIEVE THE NEW ZEALAND STOCK MARKET IS TAKING FLIGHT BEWARE THE KIWI BOURSE MAY BE IN FOR ONLY A GENTLE LIFT THE MARKET LAST MONTH WAS BOLSTERED BY GROWING CONFIDENCE IN THE COUNTRY'S LONGAWAITED ECONOMIC RECOVERY AND BETTERTHANEXPECTED EARNINGS BY TELECOM CORP THE NATIONAL TELEPHONE COMPANY ON FRIDAY THE NZSE40 CAPITAL INDEX FINISHED AT 156602 UP 041 POINT ON FEB 16 THE INDEX JUMPED TO 162165 ITS HIGHEST LEVEL IN 2 1/2 YEARS ON THE TELECOM NEWS THE INDEX HAS SINCE FALLEN BACK TO ABOUT WHERE IT STARTED THE YEAR THOUGH IT IS STILL UP 15 FROM OCTOBER WHEN IT TOUCHED AS LOW AS 136536 INVESTORS FAVORED SMALLER NEW ZEALAND STOCKS FOR MUCH OF LAST YEAR BUT HAVE SHIFTED THEIR FOCUS TO THE HEAVYWEIGHTS BECAUSE FOUR OF THE COUNTRY'S BIGGEST CORPORATIONS MAKE UP ABOUT 55 OF THE NZSE40 INDEX IT CAN BE JOLTED BY MOVES IN ANY OF THESE STOCKS TELECOM BRIERLEY INVESTMENTS AND TWO FORESTRY CONCERNS FLETCHER CHALLENGE AND CARTER HOLT HARVEY TONY GALLAUGHER AN INSTITUTIONAL DEALER AT CAVILL WHITE SECURITIES LTD IN WELLINGTON AND OTHERS SAID THAT BARRING ANY BIG DOWNTURN ON WALL STREET THEY DIDN'T FORESEE ANY BAD NEWS TO DENT THE NEW ZEALAND BOURSE STEVE ELLIS A DEALER AT ANZ MCCAUGHAN SECURITIES NZ LTD PREDICTED THAT BY THE END OF MARCH THE NZSE40 INDEX COULD APPROACH 1650 STILL MANY CAUTIONED THAT ANY GAINS IN THE WEEKS AHEAD ARE LIKELY TO BE MODEST INDEED A WELLINGTONBASED FUND MANAGER AT AUSTRALIAN MUTUAL PROVIDENT SOCIETY OR AMP A BIG INSURER CONTENDED THAT THE MARKET MUST CONSOLIDATE ITS RECENT SURGE UNDERPINNING A FIRMER OVERALL MARKET ANALYSTS SAID ARE SIGNS THAT NEW ZEALAND'S ECONOMY IS LIKELY TO STAY ON THE RECOVERY PATH CONSUMER SPENDING IS UP EXPORT SALES ARE STRONG AND BUSINESS CONFIDENCE HAS SOARED INFLATION WHICH RAN AT A 13 RATE IN 1992 IS LIKELY TO REMAIN LOW AND ANY ECONOMIC GROWTH IN THE US WILL BENEFIT NEW ZEALAND'S BIG INTERNATIONAL FORESTRY COMPANIES ANALYSTS SAID PAUL DYER AN ECONOMIST AT THE BROKERAGE FIRM BUTTLE WILSON LTD IN AUCKLAND SAID THE NEW ZEALAND ECONOMY BOTTOMED IN MID1991 HE FORECAST THAT GROWTH FOLLOWING TWO CONSECUTIVE ANNUAL CONTRACTIONS WILL REACH 25 IN THE FISCAL YEAR ENDING MARCH 31 AND 3 THE NEXT YEAR CONSEQUENTLY HE EXPECTS THE NZSE40 TO REACH 1700 BY THE END OF DECEMBER THE ECONOMIC BACKDROP AUGURS WELL FOR CORPORATE EARNINGS WHICH AMP EXPECTS TO RISE AN AVERAGE OF 9 THIS YEAR AND 20 IN EACH OF THE NEXT TWO YEARS IN TERMS OF PRICE/EARNINGS RATIOS NEW ZEALAND COMPARES FAVORABLY WITH OTHER ASIANPACIFIC MARKETS EXCEPT HONG KONG WHERE STOCKS ARE TRADING AT AN AVERAGE P/E OF LESS THAN 10 NEW ZEALAND SHARES ACCORDING TO BUTTLE WILSON ARE TRADING AT 13 TIMES PROSPECTIVE 1993 EARNINGS COMPARED WITH 165 TIMES IN SINGAPORE AND ABOUT 19 TIMES IN TAIWAN US STOCKS TRADE AT AN AVERAGE P/E OF ALMOST 17 WHILE TOKYO STOCKS TRADE AT 53 TIMES PROSPECTIVE EARNINGS THE BROKERAGE FIRM SAID THE P/E RATIO THE PRICE OF A SHARE DIVIDED BY EARNINGS PER SHARE FOR A 12MONTH PERIOD IS A COMMON WAY OF ASSESSING VALUE TELECOM TOPS THE LIST OF PICKS AT SEVERAL BROKERAGE HOUSES LAST MONTH THE COMPANY IT IS PARTLY OWNED BY AMERITECH AND BELL ATLANTIC TWO US REGIONAL PHONE COMPANIES NOT ONLY POSTED HIGHERTHANEXPECTED PROFIT FOR THE FISCAL THIRD QUARTER BUT UNVEILED A FOURYEAR RESTRUCTURING PLAN THAT WILL CUT 5200 JOBS IT MAKES FOR AN EARNINGS GROWTH PROFILE THAT IS QUITE EXCITING SAID ANZ MCCAUGHAN'S MR ELLIS HE IS LOOKING FOR TELECOM TO INCREASE ANNUAL DIVIDENDS AND PERHAPS MAKE A ONETIME CAPITAL RETURN TO SHAREHOLDERS IN THE NEXT TWO TO THREE YEARS MR ELLIS ALSO LIKES FLETCHER CHALLENGE WHICH LAST MONTH REPORTED FISCAL FIRSTHALF EARNINGS IN LINE WITH MARKET EXPECTATIONS INVESTORS GENERALLY APPLAUD THE WAY THE COMPANY HAS SOLD ASSETS TO REDUCE DEBT AT CAVILL WHITE SECURITIES MR GALLAUGHER LIKES BRIERLEY WHOSE SHARES ALSO HAVE HAD A GOOD RUN A WEAKER BRITISH CURRENCY IS EXPECTED TO BOOST TOURISM AND THUS THE OCCUPANCY RATES AT BRIERLEY'S PARTLY OWNED BRITAINBASED HOTELS UNIT MOUNT CHARLOTTE INVESTMENTS MR GALLAUGHER ALSO FAVORS TWO PUBLISHERS INDEPENDENT NEWSPAPERS AND WILSON & HORTON BOTH ARE EXPECTED TO BENEFIT FROM HIGHER ADVERTISING REVENUES GENERATED BY A MORE BUOYANT ECONOMY TOKYO STOCK PRICES FIRMED FRIDAY IN TECHNICALLY DOMINATED DEALINGS WHILE EXPORTORIENTED EQUITIES POSTED STRONG GAINS AS THE YEN EASED AGAINST THE DOLLAR LONDON SHARES SURGED 14 ON SPECULATION ABOUT GERMAN INTERESTRATE CUTS FRANKFURT STOCKS RALLIED 15 TO A NEW 1993 HIGH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 10845 POINTS THURSDAY ROSE 4596 TO 1695335 ON MONDAY THE NIKKEI FELL 10003 POINTS TO CLOSE THE MORNING SESSION AT 1685332 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES DOWN SLIGHTLY FROM 2583 MILLION SHARES ON THURSDAY GAINERS TOPPED LOSERS 490459 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 292 POINTS THURSDAY ADDED 601 TO 128421 AS THE NIKKEI WAFFLED IN A TIGHT RANGE OF ABOUT 100 POINTS ACTIVITY WAS LED BY THE FUTURES MARKET THREEQUARTERS OF FRIDAY'S CLIMB FOR THE NIKKEI CAME IN THE SESSION'S LAST 10 MINUTES ON BUYING BY ARBITRAGERS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX RALLIED 393 POINTS TO 28680 JUST 1/10TH POINT OFF THE INTRADAY HIGH THE FT 30STOCK INDEX SURGED 319 POINTS OR 15 TO 22084 VOLUME WAS 6712 MILLION SHARES COMPARED WITH 6205 MILLION SHARES A DAY EARLIER IN ADDITION TO THE MAIN THEME THAT GERMAN LENDING RATES COULD BE HEADING DOWN SOON AND IN TURN ALLOW A CUT IN BRITISH RATES A RALLY IN THE FUTURES MARKET TRIGGERED SHARP MARKUPS ON MANY STOCKS' PRICES ON THE FINAL DAY OF THE TWOWEEK TRADING ACCOUNT AND A REPORT THAT BRITISH ORDER BOOKS WERE AT THEIR HIGHEST LEVELS IN 2 1/2 YEARS RAISED MANUFACTURERS' HOPES FOR A PRODUCTION INCREASE IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 2544 POINTS TO 168435 WHICH ALSO WAS THE INTRADAY HIGH THAT FINISH SURPASSED THIS YEAR'S PREVIOUS CLOSING RECORD OF 168074 AND THE PREVIOUS TRADING HIGH OF 168227 BOTH SET LAST MONDAY THE BUYING WAS LED BY FOREIGN INVESTORS AND ALL THE DAX STOCKS ROSE PARIS STOCKS JUMPED 2 PARTLY FROM EUPHORIA ABOUT STRONG US FOURTHQUARTER ECONOMIC GROWTH ZURICH STOCKS RALLIED 18 ON STRENGTH IN THE BOND MARKET AND THE BANKING SECTOR HONG KONG STOCKS ROCKETED TO THEIR HIGHEST LEVEL SINCE NOVEMBER ON SPECULATION THAT CHINA AND BRITAIN HAD FINALLY AGREED TO DISCUSS THEIR DIFFERENCES ABOUT THE FUTURE OF THE BRITISH COLONY BUT SEOUL SHARES FELL SHARPLY HURT BY THE NEW SOUTH KOREAN GOVERNMENT'S RESOLUTION TO SPEED UP REFORMS AND STEM CORRUPTION WHICH MANY ECONOMISTS FEARED COULD RESTRICT ECONOMIC VITALITY TAIPEI PRICES ADVANCED AS A BOOM CONTINUED FOR BANKING INSURANCE AND FINANCE STOCKS 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 9303010168 930301 BUSINESS BRIEF GENERAL CINEMA CORP ADDS TO THE 1992 PAY OF ITS CHIEF EXECUTIVE CHESTNUT HILL MASS GENERAL CINEMA CORP IN A MOVE TO AVOID HIGHER TAXES UNDER THE CLINTON ADMINISTRATION ADDED ABOUT 28 MILLION TO ITS CHIEF EXECUTIVE'S 1992 COMPENSATION BY ACCELERATING THE VESTING OF RESTRICTED STOCK AWARDED TO HIM EARLIER ACCORDING TO A PROXY STATEMENT FOR THE COMPANY'S ANNUAL MEETING THIS MONTH THE ACTION FOLLOWS SIMILAR MOVES AT OTHER COMPANIES WHOSE TOP EXECUTIVES HAVE SOUGHT TO AVOID HIGHER TAXES PROPOSED BY PRESIDENT CLINTON IN DECEMBER FOR EXAMPLE WALT DISNEY CO ANNOUNCED THAT CHAIRMAN MICHAEL EISNER AND PRESIDENT FRANK WELLS MADE A TOTAL PRETAX PROFIT OF MORE THAN 187 MILLION BY CASHING IN LOWCOST STOCK OPTIONS ON ABOUT 66 MILLION SHARES AND SELLING 51 MILLION OF THEM GENERAL CINEMA DISCLOSED IN ITS PROXY THAT IN DECEMBER IT IMMEDIATELY VESTED 88800 RESTRICTED SHARES GRANTED TO ROBERT J TARR PRESIDENT AND CHIEF EXECUTIVE OFFICER ADDING 2830500 TO HIS CASH COMPENSATION OF 1925000 FOR THE YEAR THE COMPANY TOOK THIS ACTION IN PART TO PRESERVE TAX BENEFITS WHICH MIGHT BE LOST IN THE FUTURE IN THE EVENT CERTAIN TAX POLICIES ARE ENACTED INTO LAW GENERAL CINEMA SAID IN ITS PROXY THE RESTRICTED SHARES PREVIOUSLY WERE TO HAVE BECOME VESTED OVER FIVE YEARS A GENERAL CINEMA SPOKESMAN SAID THE SPOKESMAN ADDED THAT PRESIDENT CLINTON HAS INDICATED HIS ADMINISTRATION MAY ELIMINATE CORPORATE DEDUCTIONS FOR RESTRICTED STOCK AWARDS TO EMPLOYEES THAT EXCEED A CERTAIN AMOUNT PERHAPS 1 MILLION COMPANIES SOMETIMES GIVE RESTRICTED STOCK WHICH GRADUALLY BECOMES VESTED OVER TIME TO TOP EXECUTIVES AS AN INCENTIVE FOR THEM TO STAY UNTIL THE STOCK IS VESTED THE GENERAL CINEMA SPOKESMAN SAID THAT DESPITE THE IMMEDIATE VESTING OF MR TARR'S RESTRICTED STOCK HE HAS LOTS OF OTHER INCENTIVES TO STAY AT THE COMPANY IN NEW YORK STOCK EXCHANGE TRADING FRIDAY GENERAL CINEMA GAINED 1 TO 3425 GENERAL CINEMA IS A PUBLISHING RETAIL AND THEATER CONCERN 9303010167 930301 WHO'S NEWS PROPERTY CAPITAL TRUST PROPERTY CAPITAL TRUST BOSTON GLENN P STREHLE VICE PRESIDENT AND TREASURER OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WAS NAMED A TRUSTEE OF THIS REAL ESTATE INVESTMENT TRUST EXPANDING BOARD MEMBERSHIP TO NINE 9303010166 930301 WHO'S NEWS PSICOR INC PSICOR INC SAN DIEGO JOHN V CRACCHIOLO WAS NAMED CHIEF FINANCIAL OFFICER MR CRACCHIOLO 36 YEARS OLD HAD BEEN CORPORATE CONTROLLER SINCE 1989 HE SUCCEEDS GEORGE R PACHE WHO HAS LEFT THE COMPANY PSICOR PROVIDES CARDIOVASCULAR TECHNOLOGY AND SERVICES FOR HOSPITALS 9303010165 930301 WHO'S NEWS SHAWMUT NATIONAL CORP SHAWMUT NATIONAL CORP HARTFORD CONN SAID IT NAMED JAMES R CLAFFEE FORMERLY EXECUTIVE VICE PRESIDENT OF COMMERCIAL MARKETS FOR BANKAMERICA CORP'S BANK OF AMERICA ARIZONA UNIT AS EXECUTIVE VICE PRESIDENT AND HEAD OF CONNECTICUT COMMERCIAL BANKING MR CLAFFEE SUCCEEDS ANTHONY CAMPANELLI WHO RETIRED AS HEAD OF CONNECTICUT COMMERCIAL BANKING MR CAMPANELLI WAS ALSO A SENIOR VICE PRESIDENT 9303010164 930301 NICHOLS ENDS TALKS ON LABS SALE SAN JUAN CAPISTRANO CALIF NICHOLS INSTITUTE SAID IT ENDED DISCUSSIONS ABOUT SELLING ITS TEXAS LABORATORIES AND INSTEAD HAS CUT COSTS AT ITS DALLAS LAB BY LAYING OFF 115 EMPLOYEES OR ABOUT 70 OF ITS WORK FORCE LAST YEAR THE DIAGNOSTIC TESTING CONCERN SAID IT MIGHT SELL THE LABS WHICH HAVE BEEN TROUBLE SPOTS FOR THE COMPANY PARTICULARLY IN DALLAS NICHOLS TOOK A 13 MILLION RESTRUCTURING CHARGE ON THE DALLAS LABORATORY LAST YEAR 9303010163 930301 FIRST AMERICAN TO BE ACQUIRED FOR 453 MILLION FIRST UNION TO CUT COSTS AT WASHINGTON BANK HURT BY TIES TO BCCI BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIRST UNION CORP OF CHARLOTTE NC AGREED TO BUY SCANDALTINGED FIRST AMERICAN METRO CORP FOR 453 MILLION COMBINED WITH OTHER PENDING ACQUISITIONS THE FIRST AMERICAN TAKEOVER WILL MAKE FIRST UNION THE NATION'S EIGHTHLARGEST BANK HOLDING COMPANY WITH ASSETS OF 71 BILLION JUST TODAY FIRST UNION WILL COMPLETE THE TAKEOVER OF DOMINION BANKSHARES CORP ANOTHER WASHINGTONAREA BANK AFTER THE ACQUISITION OF FIRST AMERICAN FIRST UNION SAID IT WILL HAVE 122 BILLION IN ASSETS AND 387 BRANCHES IN VIRGINIA MARYLAND AND THE DISTRICT OF COLUMBIA ITS ARCHRIVAL NATIONSBANK HOWEVER WILL REMAIN THE LARGEST BANK IN THE AREA EVEN AFTER FIRST UNION'S TRANSACTIONS ARE COMPLETED FIRST UNION'S STOCK CLOSED FRIDAY AT 47 ON THE NEW YORK STOCK EXCHANGE UP 175 CENTS COST SAVINGS OF 30 ARE PLANNED WARNER N DALHOUSE CHAIRMAN AND CHIEF EXECUTIVE OF FIRST UNION NATIONAL BANK OF VIRGINIA AND BENJAMIN P JENKINS PRESIDENT AND CHIEF OPERATING OFFICER OF FIRST UNION'S VIRGINIA UNIT SAID THEY EXPECT TO ACHIEVE COST SAVINGS OF ABOUT 30 OR 62 MILLION IN FIRST AMERICAN'S ANNUAL EXPENSES BY NEXT YEAR BY MERGING IT WITH THEIR OWN LOCAL OPERATIONS NEITHER OFFICER WOULD ESTIMATE WHAT SUCH COSTSAVINGS MAY MEAN FOR FIRST AMERICAN'S EMPLOYEES THOUGH IT IS CLEAR THERE WILL BE SOME LAYOFFS IT'LL GIVE FIRST UNION SHORTTERM FINANCIAL RETURNS WHILE POSITIONING IT WELL FOR THE LONGTERM IN THE WASHINGTON REGIONAL MARKET MR DALHOUSE SAID FIRST UNION ESTIMATES THE ACQUISITION WHICH IT EXPECTS TO COMPLETE IN THE SECOND QUARTER WILL ADD 19 CENTS A SHARE TO EARNINGS IN 1994 AFTER DILUTION OF 13 CENTS A SHARE THIS YEAR THE 453 MILLION ACQUISITION WHICH REPRESENTS 124 TIMES FIRST AMERICAN'S BOOK VALUE INCLUDES 174 BANK BRANCHES 46 BILLION IN ASSETS AND MORE THAN 4 BILLION IN DEPOSITS IN VIRGINIA MARYLAND AND THE DISTRICT OF COLUMBIA WHICH IS THE HEART OF FIRST AMERICAN'S OPERATIONS MR DALHOUSE AND HIS COLLEAGUES SAID THE REGIONAL RECESSION IN THE WASHINGTON AREA IS ENDING AND THE TIME IS RIGHT FOR GROWTH IN THE REGION FIRST AMERICAN HAS BEEN BADLY HIT BY THE ECONOMIC RECESSION IN THE WASHINGTON AREA ESPECIALLY IN THE COMMERCIAL REAL ESTATE MARKET FIRST UNION SAID FRIDAY IT WOULD PROTECT ITS CREDIT QUALITY BY PLACING CERTAIN FIRST AMERICAN ASSETS IN A SEPARATE PORTFOLIO THAT IT WOULD WRITE DOWN BY AN ESTIMATED 268 MILLION TO ABOUT 306 MILLION OR ABOUT 45 OF THEIR ORIGINAL BOOK VALUE FIRST UNION EXPECTS TO DISPOSE OF ALL THESE ASSETS BY 1995 AND SAID IT WOULD ALSO ESTABLISH A RESERVE OF 68 MILLION FOR FIRST AMERICAN'S REMAINING 23 BILLION OF LOANS FIRST AMERICAN SUFFERED A CONSIDERABLE OUTFLOW OF DEPOSITS IN THE WEEKS IMMEDIATELY AFTER OF THE CLOSURE OF BCCI AND IT SUBSEQUENTLY SOLD ITS GEORGIA TENNESSEE AND NEW YORK BANKS TO BOOST ITS CAPITAL BCCI OR BANK OF CREDIT & COMMERCE INTERNATIONAL IS STILL BEING LIQUIDATED WHILE ITS SHARES IN THE HOLDING COMPANY FOR FIRST AMERICAN HAVE BEEN PLACED IN THE HANDS OF A COURTAPPOINTED TRUSTEE HARRY W ALBRIGHT JR MR ALBRIGHT PRAISED THE SALE OF FIRST AMERICAN TO FIRST UNION SAYING IT OFFERED CONTINUITY AND STABILITY FOR THE BANK'S CUSTOMERS WHILE ENSURING THE INSTITUTION WAS SOLD INTACT TO A STRONG BUYER FIRST UNION IS ACQUIRING FIRST AMERICAN METRO FROM FIRST AMERICAN BANKSHARES INC THE PARENT BANK HOLDING COMPANY FOR THE GROUP AND WILL USE CASH FROM ITS EXISTING RESOURCES TO FINANCE THE ACQUISITION FIRST AMERICAN'S TRUSTEE AFTER CONSULTING WITH OTHER PARTIES WILL DETERMINE HOW THE PAYMENT SHOULD BE DIVIDED PAUL ADAMS FIRST AMERICAN'S PRESIDENT AND CHIEF EXECUTIVE TOLD REPORTERS THERE IS LIKELY TO BE CONSIDERABLE WRANGLING OVER WHO GETS THIS MONEY THE GOVERNMENT OF ABU DHABI AN OILRICH EMIRATE IN THE PERSIAN GULF PROVIDED OVER 200 MILLION OF LOAN CAPITAL TO FIRST AMERICAN OVER THE PAST TWO YEARS AND EXPECTS TO BE REPAID FROM THE SALE PROCEEDS ABU DHABI OWNED MORE THAN 70 OF BCCI AND ALSO SEPARATELY HELD ABOUT 28 OF FIRST AMERICAN'S SHARES BUT THE MANHATTAN DISTRICT ATTORNEY AND THE JUSTICE DEPARTMENT HAVE BOTH BEEN FRUSTRATED IN THEIR ATTEMPTS TO INTERVIEW SENIOR BCCI STAFF IN CUSTODY IN ABU DHABI SINCE SEPTEMBER 1991 THE US AUTHORITIES MAY NOW TRY TO USE THE LEVERAGE OF THE SALE PROCEEDS TO FORCE ABU DHABI TO COOPERATE IN THE INVESTIGATION OF BCCI ONCE THE TRUSTEE HAS PAID HIS EXPENSES AND FIRST AMERICAN'S EXISTING BONA FIDE DEBTS THE SALE PROCEEDS SHOULDIN THEORYBE DIVIDED AMONG FIRST AMERICAN'S SHAREHOLDERS BCCI'S 60 SHARE WOULD FALL TO THE GOVERNMENT AS ALL BCCI'S US ASSETS WERE FORFEITED UNDER A SETTLEMENT BETWEEN THE US AND BCCI'S LIQUIDATORS AS PREVIOUSLY REPORTED THE FEDERAL RESERVE IN EARLY 1991 DETERMINED THAT SEVERAL ARAB INVESTORS WHO HAD ACQUIRED FIRST AMERICAN BANKSHARES IN 1982 HAD ACTED AS FRONTMEN FOR BCCI THE FED ALLEGED THAT THIS SURREPTITIOUS TAKEOVER WAS ILLEGAL FIRST AMERICAN'S FORMER CHAIRMAN CLARK CLIFFORD AND THE PRESIDENT OF ONE OF ITS MAIN UNITS ROBERT ALTMAN HAVE BEEN INDICTED BY FEDERAL AND NEW YORK STATE GRAND JURIES ON CHARGES OF BANK FRAUD MR ALTMAN'S TRIAL IN NEW YORK STATE COURT BEGINS MARCH 15 MR CLIFFORD HOWEVER IS SCHEDULED TO HAVE HEART BYPASS SURGERY THIS MONTH MEANING THAT HIS TRIAL HAS BEEN POSTPONED MESSRS CLIFFORD AND ALTMAN WHO RESIGNED FROM FIRST AMERICAN IN AUGUST 1991 UNDER PRESSURE FROM BANK REGULATORS ALSO ACTED AS OUTSIDE LEGAL COUNSEL TO FIRST AMERICAN AND BCCI AND ACQUIRED SHARES IN FIRST AMERICAN'S HOLDING COMPANY WITH NORISK LOANS FROM BCCI 9303010162 930301 WHO'S NEWS INTERNEURON PHARMACEUTICALS INC INTERNEURON PHARMACEUTICALS INC LEXINGTON MASS MALCOLM MORVILLE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PLANT PHARMACEUTICALS INC AND ROBERT K MUELLER A DIRECTOR OF ARTHUR D LITTLE INC'S ARTHUR D LITTLE LTD UNIT WERE NAMED TO THE BOARD OF THIS BIOTECHNOLOGY COMPANY EXPANDING IT TO SEVEN 9303010161 930301 TREASURY PLANS TO RAISE 450 MILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 450 MILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1425 BILLION OF 52WEEK BILLS TO REDEEM 138 BILLION IN MATURING BILLS 9303010160 930301 FINANCING BUSINESS PROPERTY CAPITAL TRUST PROPERTY CAPITAL TRUST BOSTON SAID ITS TRUSTEES DECLARED A QUARTERLY DIVIDEND OF SEVEN CENTS A SHARE PAYABLE MARCH 26 ON SHARES OF RECORD MARCH 15 THE TRUST SAID THE DIVIDEND INCLUDES A PORTION OF FISCAL 1992 TAXABLE INCOME THAT HAD TO BE DISTRIBUTED IN FISCAL 1993 IN ORDER FOR PROPERTY CAPITAL TO CONTINUE QUALIFYING AS A REAL ESTATE INVESTMENT TRUST 9303010159 930301 GPU UNIT WINS RATE INCREASE MORRISTOWN NJ JERSEY CENTRAL POWER & LIGHT CO SAID NEW JERSEY REGULATORS GRANTED IT A 1313 MILLION INCREASE IN ITS RETAIL RATES THE ELECTRIC UTILITY A UNIT OF GENERAL PUBLIC UTILITIES CORP SAID 1175 MILLION OF THE INCREASE WOULD BE EFFECTIVE IMMEDIATELY WITH THE REMAINDER GOING INTO EFFECT IN JANUARY 1994 THE DECISION WILL HELP TO SOMEWHAT IMPROVE JERSEY CENTRAL'S FINANCIAL POSITION THE COMPANY SAID IN A STATEMENT JERSEY CENTRAL HAD ASKED REGULATORS FOR A 221 MILLION INCREASE IN ITS BASE RATES TO COVER ACCOUNTING CHANGES FASTER PAYMENT OF STATE TAXES ADDITIONS TO ITS ELECTRICAL SYSTEM AND INCREASED EXPENSES 9303010158 930301 ECONOMY PANETTA URGES QUICK APPROVAL OF STIMULUS BILL BUDGET CHIEF SAYS PACKAGE MUST PASS IN 5 WEEKS TO MEET '93 JOB TARGET BY RICK WARTZMAN AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID PRESIDENT CLINTON'S ECONOMIC STIMULUS PACKAGE MUST BE PASSED BY CONGRESS IN THE NEXT FIVE WEEKS IF IT'S TO GENERATE THE 500000 JOBS THIS YEAR THAT THE ADMINISTRATION HAS PROMISED IF IN FACT YOU'RE GOING TO PRODUCE THE JOBS IN THE TIME FRAME WE'RE TALKING ABOUT YOU'VE GOT TO REALLY GET IT DONE BEFORE THE EASTER BREAK MR PANETTA SAID YESTERDAY ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY HE ADDED THAT HE'D LIKE TO SEE THE PACKAGE TIED TO A BUDGET RESOLUTION WHICH WILL ALSO THEN LOCK IN OUR DEFICIT REDUCTION AT THE SAME TIME THE 16 BILLIONPLUS STIMULUS PROGRAM HAS COME UNDER ATTACK BY BOTH REPUBLICANS AND CONSERVATIVE DEMOCRATS AS NEEDLESS IN LIGHT OF ECONOMIC GROWTH THAT ACCELERATED TO AN ANNUAL RATE OF 48 IN THE FOURTH QUARTER BUT MR PANETTA DEFENDED THE PLAN BY POINTING OUT THAT THE ECONOMIC UPTURN IS NOT PRODUCING ANY JOBS DESPITE CRITICISM THAT MR CLINTON'S OVERALL ECONOMIC PROPOSAL CUTS SPENDING TOO LITTLE MR PANETTA MADE CLEAR THAT THE ADMINISTRATION ISN'T PLANNING TO ADD TO ITS LIST OF SPENDING CUTS AS SOME HAVE THOUGHT LIKELY BUT HE RENEWED HIS CALL FOR OTHERS TO MAKE SPECIFIC RECOMMENDATIONS I'M VERY ANXIOUS I'M VERY INTERESTED IN HEARING THEIR SUGGESTIONS HE SAID ULTIMATELY MR PANETTA SAID THE ADMINISTRATION'S PLAN TO CONTROL HEALTH CARE COSTS WILL HAVE TO KICK IN ALONGSIDE THE ECONOMIC PLAN IF THE DEFICIT IS TO SHRINK OVER THE LONG RUN MR PANETTA REITERATED EARLIER REMARKS WHICH THE PRESIDENT HIMSELF ECHOED LAST WEEK THAT LOOKING TOWARD SIN TAXES ON CIGARETTES IS LEGITIMATE BUT HE SIDESTEPPED QUESTIONS ABOUT REPORTS THAT PRESIDENT CLINTON IS REVIEWING PROPOSALS THAT INCLUDE RAISING THE FEDERAL TAXES ON CIGARETTES BY AS MUCH AS 2 A PACK HOWEVER ANOTHER TOP ADMINISTRATION OFFICIAL DISCOUNTED THOSE REPORTS OVER THE WEEKEND SAYING THAT THE HEALTH CARE TASK FORCE HEADED BY HILLARY RODHAM CLINTON HASN'T YET PRESENTED ANY OPTIONS TO THE PRESIDENT AT ONE POINT YESTERDAY MR PANETTA WAS ASKED ABOUT A SENATE PROPOSAL THAT WOULD ALLOW TOBACCO COMPANIES A TAX DEDUCTION FOR ONLY 80 OF THEIR ADVERTISING EXPENSES INSTEAD OF 100 HE REPLIED THAT THIS IS SOMETHING THAT OUGHT TO BE DISCUSSED IN ITS CALCULATION ON THE BUDGET THE ADMINISTRATION HAS REVISED ITS ESTIMATES OF NEW SPENDING IN AN EFFORT TO BLUNT CRITICISM THAT THE WHITE HOUSE NEXT YEAR IS EXCEEDING SPENDING CAPS SET UNDER THE 1990 BUDGET AGREEMENT THOUGH NO FINAL DECISIONS HAVE BEEN MADE THE BUDGET OFFICE NOW SAYS THAT THE PRESIDENT'S PUBLIC INVESTMENT INITIATIVES WILL ADD 52 BILLION IN SPENDING IN FISCAL 1994 BEGINNING OCT 1 AND 173 BILLION IN FISCAL 1995 TOGETHER THESE ESTIMATES ARE 65 BILLION LESS THAN COMPARABLE PROJECTIONS JUST WEEKS AGO AND FOR FISCAL 1994 THE NUMBERS ARE MORE THAN 40 LESS THAN THOSE USED AT THE TIME OF THE PRESIDENT'S FEB 17 ADDRESS TO CONGRESS MR PANETTA APPEARS DETERMINED TO COME IN UNDER THE SPENDING CAPS THAT GOVERN APPROPRIATIONS BILLS BUT HE WILL HAVE TO RELY ON A BIT OF BUDGET LEGERDEMAIN TO GET THERE BECAUSE THE STIMULUS BILL IS BEING LABELED AN EMERGENCY MEASURE ITS SPENDING WILL BE TECHNICALLY EXEMPT FROM THE SAME CAPS EVEN THOUGH MUCH OF THE MONEY WOULD GO TO SUPPLEMENT EXISTING PROGRAMS MOREOVER IN WRITING ITS BUDGET THE ADMINISTRATION USED A SET OF SPENDING ASSUMPTIONS OR BASELINES THAT RUN ABOVE THE APPROPRIATIONS CAPS SET FOR THE NEXT TWO YEARS THIS WAS DONE TO GET A BETTER PICTURE OF THE FULL PROBLEM FACING THE GOVERNMENT BUT THE RESULT ALSO PLAYS DOWN PLANNED DEFENSE CUTS AND BUILDS IN A RESERVE THAT FAVORS DOMESTIC PROGRAMS BACKED BY THE ADMINISTRATION FOR EXAMPLE MR CLINTON'S DEFENSE CUTS COME FROM A BASELINE THAT HAS ALREADY FROZEN DIRECT SPENDING FOR DEFENSE AT 2844 BILLION ANNUALLY FOR THE NEXT TWO YEARS A 10 BILLION REDUCTION FROM THE CURRENT LEVEL BY COMPARISON THE BASELINE FOR MEASURING CUTS FROM DOMESTIC SPENDING JUMPS FROM 2425 BILLION IN FISCAL 1994 TO 2511 BILLION IN FISCAL 1995 AN ESTIMATED 167 BILLION INCREASE FROM THE CURRENT YEAR 9303010157 930301 FINANCING BUSINESS CURRAGH INC CURRAGH INC TORONTO SAID IT WILL OFFER TO INSTITUTIONAL INVESTORS IN CANADA 50 MILLION CANADIAN DOLLARS US399 MILLION OF CONVERTIBLE PREFERRED SHARES THE PREFERRED SHARES WILL BE OFFERED AT C120 A SHARE AND WILL BE CONVERTIBLE INTO SUBORDINATE VOTING SHARES OF CURRAGH ON A 1FOR1 BASIS THE SUBORDINATE VOTING SHARES WHICH DID NOT TRADE FRIDAY CLOSED THURSDAY AT 1125 ON THE NEW YORK STOCK EXCHANGE THE MINING CONCERN SAID IT WILL USE PROCEEDS TO REDUCE BANK DEBT AND PROVIDE WORKING CAPITAL 9303010156 930301 COMMODITIES NEW YORK'S BIG COMMODITY EXCHANGES TO TRADE TODAY BY WARREN GETLER AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NEW YORK'S FIVE BIG COMMODITY EXCHANGES SAID THEY INTEND TO RESUME TRADING TODAY DESPITE FRIDAY'S DEVASTATING BLAST UNDER THE WORLD TRADE CENTER COMPLEX WHICH HOUSES THE EXCHANGES ALTHOUGH SOME EXCHANGES SAID TRADING WOULD BEGIN LATER THAN USUAL OFFICIALS SAID EXCHANGE FACILITIES AT FOUR WORLD TRADE CENTER WEREN'T DAMAGED BY THE POWERFUL EXPLOSION IN THE PARKING GARAGE BELOW THE WORLD TRADE CENTER'S TWIN TOWERS EXCHANGE OFFICIALS SAID THE NEW YORK CITY FIRE DEPARTMENT GAVE THEM PERMISSION TO RESUME TRADING IN THE COMMODITY EXCHANGE PITS IN FOUR WORLD TRADE CENTER AFTER TESTS OVER THE WEEKEND SHOWED THAT ALL COMPUTER AND COMMUNICATIONS EQUIPMENT WAS WORKING PROPERLY FOUR WORLD TRADE CENTER IS A NINESTORY OFFICE BUILDING NEXT TO ONE OF THE 110STORY TWIN TOWERS THE FIVE EXCHANGES WHICH HELP DETERMINE PRICES FOR SUCH IMPORTANT COMMODITIES AS OIL AND GOLD HAVE NO BACKUP TRADING FACILITIES TO WHICH THEY CAN MOVE OPERATIONS BUT OFFICIALS SAID THAT THEY CONTINUED TRADING FRIDAY AT THEIR FACILITY AFTER THE EXPLOSION RIPPED THROUGH THE BASEMENT OF THE TRADE CENTER KILLING FIVE INJURING MORE THAN 1000 AND SHUTTING DOWN POWER TO EMERGENCY SYSTEMS IN THE TWO TOWERS THE EXCHANGES WERE EVACUATED AFTER POWER TO THE HUGE COMPLEX WAS CUT OFF TO ALLOW FIREMEN TO BATTLE FLAMES CAUSED BY THE EXPLOSION THE TOWERS ARE EXPECTED TO REMAIN CLOSED FOR AS LONG AS ONE WEEK ACCORDING TO PORT AUTHORITY OFFICIALS ALTHOUGH JAMES NEAL GENERAL MANAGER OF COMMODITIES EXCHANGE CENTER INC SAID YESTERDAY THAT IT'S GOING TO BE BUSINESS AS USUAL JAMES BOWE THE SENIOR VICE PRESIDENT OF THE COFFEE SUGAR & COCOA EXCHANGE SAID HE DOESN'T EXPECT TRADING ON THAT EXCHANGE TO BEGIN FOR SEVERAL HOURS PAST THE USUAL 915 AM START HE SAID SOME 25 OF FRIDAY'S TRANSACTIONS WERE LEFT UNPROCESSED WHEN THE EXCHANGE WAS EVACUATED WE'RE NOT LIKELY TO START TRADING UNTIL THE VAST MAJORITY OF FRIDAY'S BUSINESS IS PROCESSED HE SAID ALSO TRADING IN EUROPEAN STOCKINDEX FUTURES WHICH USUALLY BEGINS AT 530 AM ON THE COMMODITIES EXCHANGE WON'T BEGIN UNTIL 9 AM TODAY EXCHANGE OFFICIALS SAID THE NEW YORK MERCANTILE EXCHANGE SAID IT EXPECTED TO BEGIN TRADING AT 945 AM TODAY WHICH IS THE USUAL STARTING TIME FOR TRADING IN CRUDE OIL BUT THAT'S LATER THAN USUAL FOR THE TRADING OF PLATINUM AND PALLADIUM AS WELL AS SOME PETROLEUM DERIVATIVE PRODUCTS DAVID M CORCORAN DEPUTY CHIEF OF THE NEW YORK FIRE DEPARTMENT'S FIRST DIVISION SAID AN INSPECTION OF THE COMMODITY EXCHANGES THIS WEEKEND UNCOVERED NO STRUCTURAL DAMAGE HE SAID TRADING WOULD BE ALLOWED AS LONG AS THERE WERE CERTIFIED FIRE WARDENS AND THE EXCHANGES PROVIDED VENTILATORS TO PUMP FRESH AIR INTO THE BUILDING THE COMPLEX'S AUTOMATIC FIRE ALARM SYSTEM AND ITS VENTILATION SYSTEM WERE DAMAGED BY FRIDAY'S BLAST MR CORCORAN SAID THE FIRE DEPARTMENT WOULD MAKE AVAILABLE A PUMPER TRUCK TO SUPPLY WATER TO THE SPRINKLER SYSTEM IN FOUR WORLD TRADE CENTER WITH NO BACKUP FACILITIES THE CURTAILMENT OF TRADING AT THE FIVE EXCHANGES WOULD CAUSE THE LOSS OF MILLIONS OF DOLLARS EACH DAY FOR TRADERS AND FIRMS THAT BUY AND SELL FUTURES CONTRACTS FOR SUCH COMMODITIES AS GOLD OIL COTTON AND COFFEE BUYERS AND SELLERS OF COMMODITIES WOULD STILL HAVE ACCESS TO CASH OR SPOT MARKETS FOR THOSE PRODUCTS IF THE FUTURES EXCHANGES COULDN'T FUNCTION BUT FUTURES PRICES PROVIDE VALUABLE INFORMATION ABOUT SUPPLY AND DEMAND FACTORS AND SERVE TO SMOOTH WHAT COULD OTHERWISE BECOME WILD PRICE GYRATIONS OPERATING WITHOUT BENEFIT OF THE FUTURES MARKETS WOULD BE LIKE TRYING TO DRIVE WITH YOUR WINDSHIELD COVERED WITH ICE OR SNOW SAID PETER BEUTEL A SENIOR FUTURES STRATEGIST WITH BRODIE WHITE & CO FUTURES BROKERS HE SAID THAT SHOULD ENERGY FUTURES CONTRACTS NOT OPEN FOR TRADING TODAY IN NEW YORK FOR SOME REASON FIRMS CAN PLACE ORDERS THROUGH LONDON EXCHANGES ALTHOUGH AT SOME INCONVENIENCE EXCHANGE OFFICIALS LAUNCHED AN IMMEDIATE TELEPHONE CAMPAIGN FRIDAY TO PERSUADE MAYOR DAVID DINKINS AND US SENS DANIEL MOYNIHAN AND ALFONSE D'AMATO TO USE THEIR INFLUENCE TO GET THE EXCHANGES REOPENED TODAY THE GOVERNMENT OFFICIALS WERE HELPFUL IN PERSUADING THE PORT AUTHORITY TO MOVE MORE QUICKLY THAN WHAT THEY OTHERWISE MIGHT HAVE DONE SAID JOHN M DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION IN WASHINGTON IN THEIR OWN AREAS THE NEW YORK FUTURES MARKETS ARE THE MOST IMPORTANT MARKETS IN THE WORLD HE SAID THERE'S NO BIGGER MARKET FOR OIL GOLD COFFEE SUGAR OR COCOA HE ADDED THAT IF THE MARKETS DON'T FUNCTION PROPERLY THE IMPACT ON MARKET USERS AND ULTIMATELY CONSUMERS IS QUITE SEVERE PEOPLE ARE INCREASINGLY DEPENDENT ON FUTURES MARKETS FOR MANAGING RISK BUT MR DAMGARD SAID THE EXCHANGES HAD DECIDED PREVIOUSLY THAT HAVING BACKUP TRADING FACILITIES AT ANOTHER LOCATION WOULD COST TOO MUCH THEY DO HOWEVER HAVE OFFSITE DATAPROCESSING SYSTEMS FOR CLEARING TRADES BUT Z LOU GUTTMAN CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE SAID YESTERDAY THAT HIS EXCHANGE WOULD ONCE AGAIN EXPLORE THE QUESTION OF ESTABLISHING WHAT HE CALLED A SHADOW FACILITY AS A BACKSTOP TO THE EXISTING TRADE OPERATIONS HE SAID MERC OFFICIALS SPENT PART OF THE WEEKEND LOOKING AT POSSIBLE SITES SUCH AS WAREHOUSES IN NEW JERSEY THAT COULD BE USED AS A TEMPORARY EMERGENCY TRADING OPERATION BUT HE SAID THE LOGISTICAL PROBLEMS OF PROVIDING SUFFICIENT PHONE LINES AND PRICEQUOTATION EQUIPMENT WOULD HAVE BEEN MONUMENTAL WALL STREET FIRMS WITH HEADQUARTERS IN THE WORLD TRADE CENTER BUILDINGS ALSO SCRAMBLED THROUGH THE WEEKEND TO DETERMINE WHETHER THEY COULD RETURN TO THEIR OFFICES OR IF NECESSARY ARRANGE FOR ALTERNATE OPERATIONS SITES THE TOWERS ARE HOME TO SEVERAL FIRMS INCLUDING THREE PRIMARY DEALERS OF US GOVERNMENT SECURITIES AND THE LARGEST INTERDEALER BOND BROKER AN UNDETERMINED NUMBER OF SMALLER DEALERS AND MARKETRELATED BUSINESSES ALSO HAVE MAIN OFFICES IN THE COMPLEX THE LARGEST DEALER LOCATED IN THE COMPLEX SALOMON BROTHERS INC IS EXPECTED TO RETURN TO FULL OPERATIONS TODAY AT ITS REGULAR OFFICES ACCORDING TO A COMPANY SPOKESWOMAN SALOMON A PRIMARY DEALER IN US GOVERNMENT SECURITIES AND A MAJOR PLAYER IN OTHER BOND MARKETS IS LOCATED IN SEVEN WORLD TRADE CENTER SEPARATED FROM THE REST OF THE COMPLEX BY A STREET THE BLAST HAD NO MAJOR EFFECT ON ANY OF SALOMON'S VARIOUS OPERATIONS AT ITS HEADQUARTERS SAID THE SPOKESWOMAN BUSINESS WILL BEGIN AS USUAL ON MONDAY SHE SAID DEAN WITTER DISCOVER & CO A LARGE RETAIL BROKERAGE FIRM WITH OFFICES IN ONE OF THE CLOSED TOWERS SAID IT HAD ORDERED EMPLOYEES TO REPORT TODAY TO OTHER LOCATIONS IN NEW YORK AND NEW JERSEY AND WOULD ROUTE PHONE CALLS FROM CLIENTS TO THOSE LOCATIONS FROM THE CUSTOMER'S STANDPOINT THERE SHOULD BE NO CHANGE IN THE QUALITY OF SERVICE SAID JAMES FLYNN A SENIOR VICE PRESIDENT OF THE FIRM HE SAID THE COMPANY HAS MOST OF ITS OPERATIONS IN DALLAS AND FINISHED BUSINESS FRIDAY WITHOUT COMPLICATIONS BUT OTHER FIRMS DIDN'T FARE SO WELL SOON AFTER MAKING A HARROWING TWOHOUR TREK DOWN 105 SMOKEFILLED FLOORS FROM HIS OFFICES IN ONE WORLD TRADE CENTER WITH 750 COLLEAGUES ROBERT M MERCORELLA SENIOR VICE PRESIDENT AND A MANAGING DIRECTOR AT CANTOR FITZGERALD SECURITIES CORP A UNIT OF CANTOR FITZGERALD INC BEGAN MAKING PLANS TO FIND ALTERNATE OPERATION SITES CANTOR FITZGERALD SECURITIES IS THE LARGEST INTERDEALER BOND BROKER AS OF YESTERDAY AFTERNOON CANTOR WAS STILL ARRANGING TO MOVE OPERATIONS TO ALTERNATE SITES AND MR MERCORELLA COULDN'T SAY WHICH OPERATIONS WOULD BE RUNNING BY TODAY WE EXPECT TO BE UP AND RUNNING IN SEVERAL OF OUR BUSINESSES IF NOT MONDAY THEN CERTAINLY BY TUESDAY HE SAID OVER THE WEEKEND CANTOR OFFICIALS USED THE OFFICES OF CHEMICAL BANK TO SETTLE AND CLEAR ALL TRADES THAT HAD BEEN EXECUTED THROUGH FRIDAY WHEN THEIR OFFICIES ON THE 105TH FLOOR OF ONE WORLD TRADE CENTER WERE EVACUATED FOLLOWING THE BLAST SAID MR MERCORELLA AS AN INTERDEALER BROKER CANTOR FACILITATES TRADING AMONG THE PRIMARY DEALERS AND OTHER BOND DEALERS BOND DEALERS ARE OFTEN RELUCTANT TO SHARE INFORMATION ABOUT HOLDINGS WITH THEIR COMPETITORS SO CANTOR ACTS AS AN INTERMEDIARY FOR MANY TRADES THOUGH IT TRADES IN A NUMBER OF DIFFERENT SECURITIES AND MATURITIES INCLUDING TREASURY NOTES AND BONDS AND MORTGAGEBACKED SECURITIES CANTOR HAS STAKED OUT A NICHE BUSINESS IN THE TRADING OF 30YEAR TREASURY BONDS CANTOR ALSO OFFERS A PRICING SERVICE THAT INCLUDES CURRENT PRICES FOR TREASURY NOTES AND BONDS WHILE THE SERVICE IS WIDELY WATCHED ON WALL STREET MANY SMALL INVESTORS AND MONEY MANAGERS RELY ON THE ELECTRONIC SERVICE FOR ALL THEIR PRICING INFORMATION NEEDS ACCORDING TO THOMAS R LYNETT A DIRECTOR OF GOVERNMENT TRADING AT MERRILL LYNCH & CO CANTOR'S ABSENCE FROM THE MARKET MAY HAVE A SIGNIFICANT EFFECT ON TRADING FOR THE 30YEAR TREASURY BOND THE MARKET BENCHMARK DEALERS SHOULD HAVE LITTLE PROBLEM IN TRADING OTHER MATURITIES SAID MR LYNETT BECAUSE THEY CAN DO SO DIRECTLY BETWEEN FIRMS INSTEAD OF THROUGH CANTOR BUT TRADING OF THE 30YEAR BOND COULD BE PROBLEMATIC WITH THE MARKET'S MOST IMPORTANT TRADING INTERMEDIARY POSSIBLY OUT OF COMMISSION FOR THE MOMENT MR LYNETT SAID THAT REGIONAL BOND DEALERS LOCATED OUTSIDE NEW YORK MAY ALSO RUN INTO TRADING PROBLEMS IF THEY USED CANTOR'S SERVICES EXCLUSIVELY WE'RE OPTIMISTIC THAT WE'LL BE OPERATING AT A REMOTE SITE WE'VE GOT SPACE IN NEW JERSEY AND MANHATTAN WE'RE SEGMENTING OUR BUSINESS TO OPERATE AWAY FROM OUR MAIN OFFICES SAID MR MERCORELLA OF CANTOR HE COULDN'T IDENTIFY HOW THOSE BUSINESSES WOULD BE SEGMENTED AND WHERE THEY WOULD BE RUNNING BUT HE SAID THAT THE COMPANY WOULD BE SETTING UP A COMMAND CENTER IN THE WORLD FINANCIAL CENTER LOCATED ACROSS THE STREET FROM THE WORLD TRADE CENTER SHORTLY AFTER THE BLAST ON FRIDAY MR MERCORELLA HAD SAID THAT THE COMPANY DIDN'T HAVE ANY BACKUP FACILITIES IN THE CASE OF SUCH AN EMERGENCY 9303010155 930301 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN CLAUDIO X GONZALEZ WAS ELECTED TO THE BOARD OF THIS ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN INCREASING THE SIZE TO 16 DIRECTORS MR GONZALEZ 58 IS CHAIRMAN AND MANAGING DIRECTOR OF KIMBERLYCLARK DE MEXICO AND A DIRECTOR OF PARENT KIMBERLYCLARK CORP A DALLAS MAKER OF CONSUMER PAPER PRODUCTS 9303010154 930301 CYTOGEN EXPANDS LICENSING PACT PRINCETON NJ CYTOGEN CORP SAID IT EXPANDED ITS LICENSING AND PRODUCTDEVELOPMENT AGREEMENTS WITH CYTORAD INC TO INCLUDE CYTOGEN'S OVARIAN CANCER THERAPY PROGRAM CYTORAD WAS FORMED BY CYTOGEN A BIOPHARMACEUTICAL COMPANY AS A SEPARATELY TRADED VEHICLE FOR RESEARCH AND DEVELOPMENT OF SYSTEMS FOR DIAGNOSING AND TREATING CERTAIN FORMS OF CANCER UNDER THE NEW ARRANGEMENT CYTORAD WILL PAY TO CYTOGEN A NONREFUNDABLE LICENSING FEE OF 2 MILLION AN OPTION IN THE LICENSE ALLOWS CYTOGEN TO BUY BACK ITS OVARIANTHERAPY PRODUCTS AFTER A PRODUCT LICENSE APPLICATION HAS BEEN FILED WITH THE US FOOD AND DRUG ADMINISTRATION 9303010153 930301 SOUTH KOREAN CURRENT ACCOUNT SEOUL SOUTH KOREA'S CURRENT ACCOUNT DEFICIT PLUNGED TO 460 BILLION IN 1992 FROM 873 BILLION IN 1991 MAINLY REFLECTING A SHARP DROP IN THE NATION'S TRADE DEFICIT THE BANK OF KOREA SAID ACCORDING TO THE CENTRAL BANK'S PRELIMINARY REPORT THE NATION'S TRADE DEFICIT NARROWED TO 22 BILLION IN 1992 FROM 698 BILLION A YEAR EARLIER LARGELY AS A RESULT OF STAGNANT CAPITAL INVESTMENT BY THE NATION'S COMPANIES THE CURRENT ACCOUNT WHICH CONSISTS OF VISIBLE AND INVISIBLE TRADE AND TRANSFER PAYMENTS IS A NATION'S TRADE BALANCE IN GOODS AND SERVICES AS WELL AS INVESTMENT INCOME AND GOVERNMENT PAYMENTS 9303010152 930301 FINANCING BUSINESS PRECISION CASTPARTS CORP PRECISION CASTPARTS CORP SAID IT HAS MADE A DUTCH AUCTION CASH TENDER OFFER FOR 47 MILLION COMMON SHARES UNDER TERMS OF THE OFFER PRECISION PLANS TO BUY COMMON SHARES FROM SELLING HOLDERS AT PRICES FROM 21 A SHARE TO 2450 A SHARE PRECISION A PORTLAND ORE MAKER OF AEROSPACE PARTS SAID IT PLANNED TO FINANCE SHARE PURCHASES WITH 50 MILLION OF AVAILABLE CASH SHORTTERM INVESTMENTS AND DEBT WILLIAM MCCORMICK CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT THE COMPANY'S PROPOSED PURCHASES ARE A PRUDENT USE OF TODAY'S CASH BALANCES AND DEBT CAPACITY AS OF THURSDAY THERE WERE 179 MILLION COMMON SHARES OUTSTANDING THE COMPANY SAID PRECISION CLOSED FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 2225 A SHARE UP 175 9303010151 930301 CHICAGO CONTRACTOR FACE SUITS OVER FLOOD DAMAGE CHICAGO THREE DEPARTMENT STORES AND OWNERS OF MORE THAN A DOZEN OTHER BUILDINGS CLOSED BY LAST APRIL'S FREAK DOWNTOWN FLOOD SUED THE CITY AND A CONSTRUCTION COMPANY CHARGING NEGLIGENCE PROPERTY DAMAGE AND LOSS OF INCOME THE LAWSUITS FILED IN FEDERAL AND STATE COURTS HERE FRIDAY SEEK UNSPECIFIED DAMAGES BUT AN ATTORNEY FOR THE PLAINTIFFS MARK S GROTEFELD OF THE LAW FIRM OF ROBINS KAPLAN MILLER & CIRESI SAID THEY COULD EASILY RUN INTO THE TENS OF MILLIONS OF DOLLARS PLAINTIFFS INCLUDE DAYTON HUDSON CORP WHICH OPERATES MARSHALL FIELD'S DEPARTMENT STORE FILENE'S BASEMENT OWNER MAY DEPARTMENT STORES CO AND PA BERGNER & CO WHOSE CARSON PIRIE SCOTT DOWNTOWN STORE ALSO WAS FORCED TO CLOSE FOR SEVERAL DAYS WHILE WATER WAS PUMPED FROM BASEMENTS THE DAMAGES SOUGHT COVER NOT ONLY LOST BUSINESS AND RENT REVENUE BUT ALSO ELECTRICAL SYSTEMS COMPUTERS AND MERCHANDISE DAMAGED OR DESTROYED WHEN MILLIONS OF GALLONS OF WATER BROKE THROUGH A TUNNEL DURING WORK ON A CHICAGO RIVER BRIDGE BESIDES THE CITY THE SUITS NAME GREAT LAKES DREDGE & DOCK CO OAK BROOK ILL A CONTRACTOR WHOSE WORK ON BRIDGE PILINGS ALLEGEDLY CONTRIBUTED TO THE LEAK SPOKESMEN FOR THE DEFENDANTS COULDN'T BE REACHED TO COMMENT YESTERDAY 9303010150 930301 AUSTRALIAN VEHICLE REGISTRATIONS CANBERRA AUSTRALIA REGISTRATIONS OF NEW MOTOR VEHICLES IN AUSTRALIA FELL 38 TO A SEASONALLY ADJUSTED 44572 IN JANUARY FROM 46323 IN DECEMBER AND FELL 35 FROM 46177 IN JANUARY 1992 THE BUREAU OF STATISTICS SAID ECONOMISTS ON AVERAGE HAD EXPECTED AUTO REGISTRATIONS TO FALL ABOUT 3 THE BUREAU'S TREND ESTIMATE WHICH TAKES IRREGULAR FACTORS OUT OF THE DATA TO IDENTIFY THE LONGERTERM TREND ROSE 09 IN JANUARY FROM DECEMBER AND ROSE 35 FROM A YEAR EARLIER AUTO REGISTRATIONS ARE THE BEST INDICATOR OF NEW CAR SALES IN AUSTRALIA 9303010149 930301 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK CHIEF EXECUTIVE OFFICER AND PRESIDENT LELAND TOLLETT 55 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF VICE CHAIRMAN ALSO FRANCIS L MILLER THE CHAIRMAN OF ARCTIC ALASKA FISHERIES CORP DECIDED FOR PERSONAL REASONS NOT TO STAND FOR REELECTION TO THE BOARD ACCORDING TO JOHN H TYSON VICE PRESIDENT AND VICE CHAIRMANOPERATIONS MR MILLER 61 BECAME A DIRECTOR OF THE POULTRY PRODUCER IN DECEMBER FOLLOWING TYSON'S PURCHASE OF ARTIC ALASKA MR MILLER'S DECISION REDUCED THE SLATE OF TYSON DIRECTORS REELECTED FRIDAY TO 10 MR TYSON SAID 9303010148 930301 SOUTH KOREAN FIRMS SIGN PACT SEOUL POHANG & STEEL CO AND PUSAN PIPE MANUFACTURING CO HAVE SIGNED A CONTRACT WITH VIETNAM STEEL CORP TO BUILD A STEEL PIPE PLANT IN VIETNAM SOUTH KOREAN OFFICIALS SAID THE 24 MILLION JOINT VENTURE WILL BE FINANCED 50 BY THE VIETNAMESE COMPANY 35 BY POSCO AND 15 BY PUSAN PIPE MANUFACTURING THE KOREAN OFFICIALS SAID THEY HOPE TO COMPLETE THE PLANT IN APRIL 1994 9303010147 930301 LA CAIXA NET PROFIT RISES 13 MADRID THE SPANISH SAVINGS BANK CAJA DE AHORROS Y PENSIONES DE BARCELONA KNOWN AS LA CAIXA SAID CONSOLIDATED NET PROFIT ROSE 13 IN 1992 TO 375 BILLION PESETAS 3186 MILLION FROM 1991 LA CAIXA SPAIN'S LARGEST SAVINGS BANK DIDN'T PROVIDE YEAREARLIER FIGURES IN A STATEMENT RELEASED LATE THURSDAY IN JANUARY LA CAIXA SAID ITS UNCONSOLIDATED PRETAX PROFIT ROSE 65 IN 1992 TO 4221 BILLION PESETAS FROM 3965 BILLION IN 1991 LA CAIXA SAID ITS NET INTEREST INCOME ROSE 13 IN 1992 FROM 1991 WHILE OPERATING PROFIT JUMPED 49 FROM THE PREVIOUS YEAR THE BANK DIDN'T PROVIDE FIGURES THE BANK SAID TOTAL ASSETS GREW 14 TO 705 TRILLION PESETAS 5989 BILLION BY THE END OF 1992 FROM 621 TRILLION PESETAS AT THE END OF 1991 9303010146 930301 FINANCING BUSINESS SYQUEST TECHNOLOGY INC SYQUEST TECHNOLOGY INC FREMONT CALIF SAID IT PLANS TO ACQUIRE PERIODICALLY AS MANY AS ONE MILLION SHARES OF ITS COMMON STOCK ON THE OPEN MARKET THE COMPUTER DATA STORAGE PRODUCTS COMPANY SAID THE SHARE ACQUISITIONS ARE PRUDENT INVESTMENTS OF THE COMPANY'S CASH RESOURCES 9303010145 930301 WHO'S NEWS INTERNATIONAL AIRLINE SUPPORT GROUP INC INTERNATIONAL AIRLINE SUPPORT GROUP INC MIAMI DUANE HODGKINSON 50 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF SALES AND MARKETING FOR THE DISTRIBUTOR OF COMMERCIAL AIRCRAFT PARTS MR HODGKINSON HELD THE SAME POSITION WITH FRAIN INDUSTRIES MELROSE PARK ILL AN INTERNATIONAL MARKETER OF PACKAGING AND PROCESSING EQUIPMENT 9303010144 930301 WHO'S NEWS SANTA FE ENERGY RESOURCES SANTA FE ENERGY RESOURCES HOUSTON MELVYN N KLEIN 52 YEARS OLD WAS ELECTED TO THE BOARD OF THE INDEPENDENT OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR KLEIN OF CORPUS CHRISTI TEXAS IS THE SOLE SHAREHOLDER OF A GENERAL PARTNER IN GKH PARTNERS LP AN INVESTMENT PARTNERSHIP THAT IN TURN HOLDS A SUBSTANTIAL INTEREST IN HC ASSOCIATES A PARTNERSHIP THAT OWNS 114 OF SANTA FE ENERGY'S COMMON STOCK HE SUCCEEDS LIONEL G DODD WHO RESIGNED 9303010143 930301 FINANCING BUSINESS SUPERMAC TECHNOLOGY INC SUPERMAC TECHNOLOGY INC SUNNYVALE CALIF SAID IT MADE A PUBLIC OFFERING OF ONE MILLION SHARES OF NEWLY ISSUED COMMON STOCK AT 1625 A SHARE THE COMPUTER GRAPHICS PRODUCTS COMPANY SAID PROCEEDS FROM THE OFFERING WILL BE USED FOR GENERAL CORPORATE PURPOSES AS OF DEC 31 THE COMPANY HAD EIGHT MILLION SHARES OF COMMON STOCK OUTSTANDING 9303010142 930301 UNCHANGED FARM PRICES REPORTED FOR FEBRUARY WASHINGTON AVERAGE FARM PRICES IN FEBRUARY WERE UNCHANGED FROM JANUARY AND 28 BELOW A YEAR EARLIER THE AGRICULTURE DEPARTMENT SAID INCREASES FROM JANUARY FOR HOGS CATTLE SWEET CORN AND CELERY OFFSET DECLINES FOR TOMATOES MILK CARROTS AND EGGS COMPARED WITH A YEAR EARLIER LOWER PRICES FOR TOMATOES ORANGES CORN AND WHEAT MORE THAN OFFSET HIGHER PRICES FOR CATTLE CELERY HOGS AND EGGS HOG PRICES ROSE 220 PER HUNDREDWEIGHT FROM JANUARY TO 4360 AND WERE 340 ABOVE A YEAR EARLIER CATTLE PRICES WERE UP 90 CENTS PER HUNDREDWEIGHT FROM JANUARY TO 7510 AND WERE 260 ABOVE A YEAR EARLIER MILK PRICES AVERAGED 1230 A HUNDREDWEIGHT IN FEBRUARY DOWN 20 CENTS FROM JANUARY AND 60 CENTS BELOW A YEAR BEFORE 9303010141 930301 BIG BOARD TAKES DISCIPLINARY STEPS AGAINST 14 PEOPLE BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTIONS AGAINST 14 INDIVIDUALS FOR VIOLATIONS OF NYSE RULES AND IN ONE CASE FEDERAL SECURITIES LAWS NONE OF THE INDIVIDUALS COULD BE REACHED FOR COMMENT ON THEIR CASES THE EXCHANGE SAID ITS DISCIPLINARY BOARD AFFIRMED A HEARING PANEL'S FINDING OF GUILT AND ITS CENSURE AND SUSPENSION FOR TWO YEARS OF MORRIS E KURZ OF STATEN ISLAND NY A MEMBER THE NYSE SAID MR KURZ FAILED TO REMIT FUNDS TO HIS EMPLOYER AND THAT HE RECEIVED FLOOR COMMISSIONS THAT WEREN'T FOR HIS EMPLOYER'S ACCOUNT GLEN TILTON GARDNER A FORMER ALLIED EXCHANGE MEMBER AND CHIEF EXECUTIVE OFFICER OF A FORMER MEMBER FIRM CONSENTED TO A CENSURE A ONEYEAR BAR FROM OPTIONS SUPERVISION AND A 5000 FINE WITHOUT ADMITTING OR DENYING CHARGES MR GARDNER OF LOS ANGELES WAS DISCIPLINED FOR SUPERVISORY DEFICIENCIES RELATED TO FUTURES TRADING FIVE INDIVIDUALS WERE DISCPLINED FOR SALES PRACTICE AND OTHER VIOLATIONS INCLUDING OPTIONS INFRACTIONS MILTON OSGOOD CROSS III SAN FRANCISCO WAS CENSURED FINED 50000 SUSPENDED FOR A MONTH BARRED FOR A YEAR FROM EXERCISING DISCRETIONARY POWER IN CUSTOMER ACCOUNTS AND GIVEN A THREEYEAR PERIOD OF SPECIAL SUPERVISION MR CROSS DIDN'T ADMIT OR DENY THAT HE VIOLATED FEDERAL SECURITIES LAW FOR PLACING AN ORDER FOR THE PURCHASE OF STOCK BY A CUSTOMER WITH KNOWLEDGE THAT THE CUSTOMER COULDN'T PAY FOR THE TRANSACTION BY SETTLEMENT DATE HE ALSO WAS CHARGED WITH OTHER NYSE VIOLATIONS WITHOUT ADMITTING OR DENYING GUILT BRADLEY ROGER KASTAN OF COLUMBUS OHIO CONSENTED TO A CENSURE A TWOMONTH SUSPENSION AND SIX MONTHS OF ENHANCED SUPERVISION MARK POWELL GERLACH OF SANTA MONICA CALIF WAS CENSURED AND BARRED FOR FOUR WEEKS MEANWHILE REYNOLD E VAUGHAN III OF MASSAPEQUA PARK NY WAS CENSURED AND BARRED FOR 18 MONTHS ALAN HOWARD GOLD OF SKOKIE ILL WAS CENSURED AND BARRED FOR ONE MONTH AFTER BEING FOUND GUILTY OF OPTIONS INFRACTIONS FIVE INDIVIDUALS WERE PERMANENTLY BARRED FOR MISAPPROPRIATION OF CUSTOMER FUNDS AND OTHER VIOLATIONS WITHOUT ADMITTING OR DENYING GUILT DAVID HIBBS DONNAN JR OF SEATTLE WASH MARK A STEIN OF ST LOUIS PARK MINN AND FREDERIC TALTON OF MATTESON ILL CONSENTED TO A CENSURE AND PERMANENT BAR BRET EUGENE TRAMPOSCH OF WILLIAMSVILLE NY AND STUART M COHEN OF STATEN ISLAND NY ALSO WERE CENSURED AND BARRED FOLLOWING FINDINGS OF GUILT M ESTELLE BELL OF CORONA CALIF AND SOOKMATTIE PAT MANGAL OF KISSIMEE FLA WERE BARRED FOR FAILING TO COOPERATE WITH NYSE INQUIRIES THE BAR REMAINS UNTIL THEY COMPLY THE EXCHANGE SAID 9303010140 930301 ATOMIC AGENCY DELAYS ACTION ON NORTH KOREA BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL ATOMIC ENERGY AGENCY HAS POSTPONED ITS SHOWDOWN WITH NORTH KOREA FOR AN ADDITIONAL MONTH GIVING THE NATION EXTRA TIME TO CONSIDER OPENING TWO SUSPECTED NUCLEAR SITES TO THE AGENCY'S INSPECTORS BUT THE IAEA'S 35MEMBER BOARD OF GOVERNORS WARNED THAT IT WILL CONSIDER A FURTHER STEP PRESUMABLY TO REQUEST SANCTIONS FROM THE UNITED NATIONS SECURITY COUNCIL IF NORTH KOREA DOESN'T COMPLY WITH OBLIGATIONS REQUIRED BY THE NUCLEAR NONPROLIFERATION TREATY AS SOON AS THE DELAY WAS ANNOUNCED LATE LAST WEEK NORTH KOREAN DIPLOMATS AGAIN REJECTED THE IAEA'S DEMANDS FOR INSPECTION ACCUSING THE AGENCY OF SIDING WITH ITS ENEMIES IN A STATEMENT ISSUED IN VIENNA NORTH KOREA ADDED THAT IT MAY HAVE TO TAKE UNSPECIFIED SELFDEFENSIVE MEASURES TO SAFEGUARD OUR SOVEREIGNTY SOME OFFICIALS OF THE IAEA AND OUTSIDE ANALYSTS HOPE THAT NORTH KOREA WILL SOFTEN ITS STANCE LATER THIS MONTH WHEN A JOINT MILITARY EXERCISE BETWEEN US FORCES AND THE SOUTH KOREAN ARMY ENDS THE EXERCISE CALLED TEAM SPIRIT INVOLVES A TOTAL OF 100000 TROOPS FROM EACH NATION IT'S SET TO BEGIN AROUND MARCH 15 AND IS SCHEDULED TO LAST FOR 10 DAYS THE PENTAGON SAYS EACH YEAR THEY'VE HELD IT TEAM SPIRIT HAS PROVOKED A CHILL IN NORTH AND SOUTH KOREAN RELATIONS THE DIALOGUE USUALLY PICKS UP AFTER THE EXERCISE ENDS SAYS LEONARD S SPECTOR A SENIOR ASSOCIATE AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE WHO CLOSELY FOLLOWS NORTH KOREA'S NUCLEAR PROGRAM LAST YEAR AFTER NORTH KOREA AGREED TO INSPECTIONS UNDER THE NUCLEAR NONPROLIFERATION TREATY WHICH IT SIGNED IN 1985 THE ANNUAL EXERCISE WAS CALLED OFF THE MYSTERY THAT REMAINS TO BE SOLVED IS HOW MUCH PLUTONIUM A NUCLEAR WEAPONS MATERIAL NORTH KOREA MAY HAVE REMOVED FROM A RESEARCH REACTOR THAT IT HAS OPERATED SINCE 1986 AT YONGBYON 60 MILES NORTH OF PYONGYANG THE NORTH KOREANS INSIST THEY HAVE TAKEN ONLY A FEW OUNCES BUT LAST WEEK CENTRAL INTELLIGENCE AGENCY DIRECTOR JAMES WOOLSEY SAID THE US SUSPECTS THEY REMOVED SEVERAL POUNDS ENOUGH TO MAKE A NUCLEAR WEAPON TO SETTLE THE MATTER THE IAEA HAS DEMANDED ACCESS TO TWO SITES WHERE NUCLEAR WASTE MAY BE STORED THE WASTES COULD BE ANALYZED TO DETERMINE HOW MUCH MATERIAL WAS REMOVED FROM THE REACTOR NORTH KOREA SAYS THE TWO SITES ARE UNRELATED MILITARY SITES AT YONGBYON THE IAEA IS USING SPECIAL POWERS GRANTED BY THE UN AFTER THE PERSIAN GULF WAR TO CARRY OUT WIDERANGING INSPECTIONS OTHERWISE THIS IS THE FIRST TIME THE AGENCY HAS USED ITS AUTHORITY TO DEMAND INSPECTION OF AREAS OTHER THAN THOSE DESIGNATED AS NUCLEAR SITES BY HOST NATIONS THE IAEA WAS CREATED AS PART OF THE US ATOMS FOR PEACE INITIATIVE IN 1948 9303010139 930301 FRENCH CONSUMER PRICES GAIN PARIS FRANCE'S CONSUMER PRICE INDEX ROSE 04 IN JANUARY FROM DECEMBER AND WAS UP 21 FROM JANUARY 1992 ACCORDING TO SEASONALLY ADJUSTED FIGURES FROM THE NATIONAL INSTITUTE OF STATISTICS AND ECONOMIC STUDIES THE JANUARY INDEX ISN'T DIRECTLY COMPARABLE WITH PREVIOUS MONTHLY INDEXES BECAUSE OF A CHANGE IN METHODOLOGY THIS YEAR IN DECEMBER THE CPI ROSE 01 FROM NOVEMBER PUTTING 1992 INFLATION AT 2 9303010138 930301 WHO'S NEWS BOWATER INC BOWATER INC DARIEN CONN THIS NEWSPRINT AND PAPER MAKER NAMED JAMES WHITE 55 YEARS OLD A DIRECTOR ON ITS 12MEMBER BOARD MR WHITE IS CURRENTLY NONEXECUTIVE CHAIRMAN OF RETAILING CONCERN ASHLEY GROUP PLC BASED IN LONDON HE FILLS THE UNEXPIRED TERM OF THE EARL OF CARRICK WHO DIED IN SEPTEMBER AT THE AGE OF 61 9303010137 930301 FINANCING BUSINESS BRADLEES INC BRADLEES INC BRAINTREE MASS SAID IT PLANS TO PRIVATELY PLACE 100 MILLION OF SENIOR SUBORDINATED NOTES PART OF THE PROCEEDS WILL BE USED TO REPAY 863 MILLION OF DEBT THE OPERATOR OF DISCOUNT DEPARTMENT STORES SAID THE REMAINDER WILL BE USED FOR OPENING STORES REMODELING EXISTING STORES AND GENERAL CORPORATE PURPOSES THE COMPANY ADDED THE NOTES WILL BE PLACED BY AN UNDERWRITING GROUP LED BY LEHMAN BROTHERS THE COMPANY SAID SEPARATELY BRADLEES SAID BANKERS TRUST CO HAS COMMITTED TO PROVIDE A 150 MILLION THREEYEAR WORKING CAPITAL REVOLVING LINE OF CREDIT TO REPLACE ITS CURRENT 150 MILLION WORKING CAPITAL AGREEMENT 9303010136 930301 FINANCING BUSINESS DR PEPPER/SEVENUP COS DR PEPPER/SEVENUP COS DALLAS SAID UNDERWRITERS EXERCISED AN OVERALLOTMENT OPTION OF NEARLY 31 MILLION SHARES ON A PREVIOUSLY COMPLETED INITIAL PUBLIC OFFERING PROCEEDS WILL BE USED TO REPAY BORROWINGS AND REDEEM A PORTION OF THE COMPANY'S 115 SENIOR SUBORDINATED DISCOUNT NOTES DUE 2002 9303010135 930301 DIVIDEND NEWS BOWATER CUTS DIVIDEND IN HALF TO 15 CENTS DARIEN CONN BOWATER INC CUT ITS DIVIDEND IN HALF TO 15 CENTS A SHARE CITING CONTINUED SOFT PRICES FOR ITS PAPER PRODUCTS THE NEW DIVIDEND IS PAYABLE APRIL 1 TO SHARES OF RECORD MARCH 10 BOWATER'S CHAIRMAN AP GAMMIE SAID THE COMPANY HAD MAINTAINED THE 30 CENT DIVIDEND FOR 13 QUARTERS DESPITE A SLUMP IN THE PAPER INDUSTRY BUT WITH THE COMBINED EFFECT OF AN EXTENDED RECESSION AND PROLONGED PRICE WEAKNESS FOR OUR PRODUCTS OUR CASH FLOW HAS BEEN SHARPLY REDUCED AND IT NO LONGER IS PRUDENT TO PAY THE HIGHER DIVIDEND RATE HE SAID BOWATER MAKES NEWSPRINT PULP COATED AND SPECIALTY PAPER AND BUSINESS PAPER 9303010134 930301 FINANCING BUSINESS SOUTHAM INC SOUTHAM INC TORONTO SAID IT PLANS TO RAISE SLIGHTLY MORE THAN 100 MILLION CANADIAN DOLLARS US80 MILLION FROM AN EQUITY ISSUE JOHN CRAIG SENIOR VICE PRESIDENT FINANCE OF THE PUBLISHING AND PRINTING CONCERN SAID THAT SOUTHAM WANTS TO RESTORE ITS DEBTTOEQUITY RATIOS TO MORE TRADITIONAL LEVELS HE SAID THE COMPANY WILL ISSUE THE NUMBER OF SHARES REQUIRED TO BRING THE COMPANY'S EQUITY TO 65 OF TOTAL CAPITALIZATION FROM 50 CURRENTLY MR CRAIG SAID THE EQUITY ISSUE IS EXPECTED TO TAKE PLACE BEFORE THE END OF THE FIRST QUARTER HE DECLINED TO GIVE FURTHER DETAILS IN TRADING ON THE TORONTO STOCK EXCHANGE LATE FRIDAY SOUTHAM SHARES CLOSED AT C14 UNCHANGED BASED ON THAT PRICE A C100 MILLION ISSUE WOULD INVOLVE THE SALE OF ABOUT 71 MILLION COMMON SHARES AT LAST REPORT SOUTHAM HAD 635 MILLION SHARES OUTSTANDINGSTAR 9303010133 930301 WORRIED ABOUT THE ENVIRONMENT HE DOES SEEM TO BE CLEANING UP BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL YOU'VE HEARD OF FREQUENTFLIER PROGRAMS HOW ABOUT A FREQUENTTRASH ONE DEPOSIT ENOUGH OLD BICYCLES AND MICROWAVE OVENS AND YOU COULD EARN LEGAL ADVICE OR AT THE VERY LEAST A PIZZA THANKS TO COSTA MESA CALIF ENTREPRENEUR RON CHARTER AND HIS GREEN CARD GREEN CARD HOLDERS BRING HIM THEIR OLD COPIERS OR FISHING POLES OR WHATEVER AND HE ADDS THE TRASH TO THEIR ACCOUNTS THE JUNK DEPOSITORS 4000 SO FAR THEN USE THEIR DEBIT CARDS TO BUY GOODS AND SERVICES AT ANY OF 250 PARTICIPATING BUSINESSES IN ORANGE COUNTY INCLUDING THE SANTA ANA ZOO THE STUFFED NOODLE RESTAURANT VARIOUS ARCHITECTS LAWYERS AND DRY CLEANERS MASSIMO PIZZA FIGURES IT DOES ABOUT 300 A WEEK IN GREEN CARD BUSINESS IT'S REALLY WORKING FOR ME SAYS PIZZA MAKER IZZY PEPIC IT WORKS TOO FOR MR CHARTER WHO KEEPS 25 OF THE TRANSACTIONS DONE WITH PARTICIPATING MERCHANTS OF COURSE CUSTOMERS MUST HAVE A LOT OF TRASH IN ORDER TO RACK UP MEANINGFUL CREDITS MR CHARTER PAYS ONLY 7 TO 15 FOR BICYCLES AS MUCH AS 35 FOR A MICROWAVE AND A MEAGER 25 CENTS FOR AN OLD BROKEN REFRIGERATOR BUT A QUARTER IS BETTER THAN THROWING IT IN A LANDFILL HE SAYS IF YOU THROW IT AWAY IT HURTS THE ENVIRONMENT FOR HIS PART MR CHARTER RECYCLES THE TRASH UNLOADING JUNK AT BIG SUNDAY AUCTIONS OR SELLING VACUUM CLEANERS TV SETS AND BICYCLES TO ESTABLISHED DEALERS FOR RECONDITIONING AND MAKING AN AVERAGE 17 MARKUP ALONG THE WAY HE HAS EVEN GOT MUNICIPAL GARBAGE WORKERS RUMMAGING THROUGH TRASH FOR TREASURES WITH SOME EARNING 150 OF CREDITS A WEEK HE ADDS THAT HE PLANS TO DEVELOP FOREIGN MARKETS SUCH AS MEXICO MR CHARTER HATCHED THE IDEA FOR THE GREEN CARD WHILE TRYING TO DRUM UP BUSINESS FOR HIS BCM AUTOMOTIVE SHOP NOTING THAT HIS CUSTOMERS WERE FINANCIALLY HURTING BECAUSE OF THE RECESSION HE BEGAN REPLACING TIMING BELTS IN PEOPLE'S CARS IN EXCHANGE FOR OLD TELEVISION SETS AND DOING BRAKE JOBS IN RETURN FOR MICROWAVE OVENS HE WOUND UP ISSUING CREDIT TO THOSE WHOSE TRADES WERE WORTH MORE THAN THEIR CAR REPAIRS THE IDEA GREW FROM THERE NOW HE HAS TURNED PART OF HIS PROPERTY INTO A RECYCLING CENTER AND PUT HIS AUTOMOTIVE BUSINESS UP FOR SALE HIS DREAM A NATIONAL NETWORK OF 2000 ENVIRONMENTAL BANKS THAT INSTEAD OF BEING BASED ON GOLD OR SILVER ARE BUILT ON JUNK 9303010132 930301 FINANCING BUSINESS MOLSON BREWERIES MOLSON BREWERIES TORONTO SAID IT PLANS A PUBLIC OFFERING IN CANADA OF 250 MILLION CANADIAN DOLLARS US1995 MILLION OF DEBENTURES IN TWO SERIES THE FIRST SERIES IS C150 MILLION OF 820 DEBENTURES DUE MARCH 2003 AND THE SECOND IS C100 MILLION OF 910 DEBENTURES DUE MARCH 2013 THE COMPANY SAID PROCEEDS WILL BE USED TO REFINANCE EXISTING DEBT THE LEAD UNDERWRITER FOR THE OFFERING IS RBC DOMINION SECURITIES INC TORONTOBASED MOLSON BREWERIES IS A JOINT VENTURE BETWEEN MOLSON COS OF TORONTO AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA 9303010131 930301 FINANCING BUSINESS NEW LINE CINEMA CORP NEW LINE CINEMA CORP NEW YORK INCREASED A PUBLIC OFFERING TO 25 MILLION SHARES FROM TWO MILLION AND INCREASED THE UNDERWRITERS' OVERALLOTMENT CITING HIGH DEMAND FOR THE SHARES THE OFFERING BEGAN FRIDAY AT 12 A SHARE UNDERWRITERS LED BY MORGAN STANLEY & CO WERE GIVEN AN OVERALLOTMENT OF 375000 SHARES UP FROM THE PREVIOUS 300000 THE INDEPENDENT FILM PRODUCER AND DISTRIBUTOR SAID PROCEEDS WOULD BE USED FOR FINANCING PRODUCTION AND ACQUISITION OF NEW FILM PROJECTS 9303010130 930301 INTERNATIONAL JAPANESE PRODUCTION FELL 03 TOKYO PRODUCTION AT JAPAN'S FACTORIES AND MINES AFTER ADJUSTMENT FOR SEASONAL FACTORS FELL 03 IN JANUARY FROM DECEMBER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED BEFORE ADJUSTMENT FOR SEASONAL FACTORS PRODUCTION IN JANUARY DROPPED 76 FROM A YEAR EARLIER THE SLIDE IN ADJUSTED OUTPUT IN JANUARY WAS SHARPLY WORSE THAN MITI'S FORECAST OF A 19 REBOUND IN ADDITION ADJUSTED INVENTORIES IN JANUARY FELL WHILE SHIPMENTS A SIGN OF DEMAND ROSE 9303010129 930301 UNITED THERMAL HOLDER MAY SELL NEW YORK UNITED THERMAL CORP SAID ITS MAJOR SHAREHOLDER CATALYST ENERGY CORP IS CONSIDERING THE SALE OF ITS 835 STAKE IN UNITED THERMAL UNITED THERMAL WHICH OPERATES STEAM SYSTEMS IN SEVERAL BIG CITIES SAID CATALYST DIDN'T GIVE ANY FURTHER INFORMATION ABOUT THE POSSIBLE SALE CATALYST HAS HIRED FIRST BOSTON CORP AS ITS FINANCIAL ADVISER IN THE MATTER UNITED THERMAL SAID 9303010128 930301 MARKETING & MEDIA JOURNAL'S RABINOWITZ WINS ASNE '93 WRITING AWARD RESTON VA DOROTHY RABINOWITZ A CRITIC FOR THE WALL STREET JOURNAL WON A 1993 DISTINGUISHED WRITING AWARD FROM THE AMERICAN SOCIETY OF NEWSPAPER EDITORS MS RABINOWITZ A TELEVISION CRITIC AND EDITORIAL WRITER WAS HONORED IN THE COMMENTARY CATEGORY FOR HER COLUMNS THAT TOOK A TART AND HUMOROUS LOOK AT SUBJECTS RANGING FROM ROSS PEROT NEW YORK CITY THE ELVIS PHENOMENON A TELEVISION SERIES ON THE BIBLE AND ASSORTED MEDIA GAFFES SHE JOINED THE WALL STREET JOURNAL IN 1990 MS RABINOWITZ WAS ONE OF FIVE WINNERS OF THE 1993 AWARD WHICH INCLUDES A 2500 PRIZE NED CRABB EDITOR OF THE JOURNAL'S LETTERS TO THE EDITOR COLUMN WAS RECOGNIZED AS A RUNNERUP IN THE HEADLINEWRITING CATEGORY OVER A LETTER ABOUT THE BENEFITS OF DRINKING MR CRABB PUT THE HEADLINE BACCHUS HEALTH PLAN WITH AN ECONOMIST'S LETTER ABOUT THE NATION'S CREDIT CRUNCH HE WROTE STARVING ECONOMY PLEASE FEED MR CRABB JOINED THE JOURNAL IN 1976 AS A COPY EDITOR MOVED TO THE EDITORIAL PAGE AS A FEATURES EDITOR IN 1984 AND BECAME LETTERS EDITOR IN 1989 9303010127 930301 UNIMARTS INC SHARES STATE COLLEGE PA UNIMARTS INC SAID ITS STOCKHOLDERS APPROVED THE ELIMINATION OF ITS CLASS B SUPERVOTING STOCK THE COMPANY SAID IT NOW HAS ONLY ONE CLASS OF COMMON STOCK HOLDERS ALSO APPROVED A ONETIME GRANT OF OPTIONS TO BUY 300000 UNIMARTS SHARES TO HENRY SAHAKIAN AND DANIEL SAHAKIAN THE COMPANY'S TWO MAJOR HOLDERS UNIMARTS OPERATES CONVENIENCE STORES IN THE MIDATLANTIC REGION 9303010126 930301 SYNETIC SHAREHOLDERS OFFER STOCK MONTVALE NJ SYNETIC INC SAID CERTAIN OF ITS SHAREHOLDERS HAVE STARTED A SECONDARY OFFERING OF 14 MILLION SYNETIC SHARES AT A PRICE OF 17 A SHARE A COMPANY SPOKESMAN COULDN'T BE REACHED TO IDENTIFY THE SELLING SHAREHOLDERS IN A STATEMENT SYNETIC A PROVIDER OF PHARMACY SERVICES AND MAKER OF PLASTIC PRODUCTS SAID IT WON'T RECEIVE ANY MONEY FROM THE SALE SYNETIC IS 59OWNED BY MEDCO CONTAINMENT SERVICES INC A MAILORDER PRESCRIPTION SERVICE 9303010125 930301 WHO'S NEWS CUSHMAN & WAKEFIELD CUSHMAN & WAKEFIELD NEW YORK THE COMMERCIAL REAL ESTATE BROKERAGE CONCERN SAID THREE PEOPLE HAVE JOINED AS SENIOR DIRECTORS ROBERT M GREER 49 YEARS OLD GEORGE H KELLER IV 45 AND LAWRENCE TANNENBAUM 38 MR GREER WAS NAMED SENIOR DIRECTOR OF FINANCE HE PREVIOUSLY WAS MANAGING DIRECTOR OF FINANCE AT JONES LANG WOOTTON ANOTHER COMMERCIAL REAL ESTATE COMPANY MR KELLER WAS SENIOR DIRECTOR FOR CORPORATE REAL ESTATE FOR JONES LANG MR TANNENBAUM WAS PREVIOUSLY A VICE PRESIDENT IN COMMERCIAL LEASING WITH OLYMPIA & YORK DEVELOPMENTS LTD CUSHMAN ALSO NAMED RICHARD W DONOHOE 44 AS BRANCH MANAGER FOR ITS MIDTOWN AND DOWNTOWN NEW YORK OFFICES PREVIOUSLY A BROKER MR DONOHOE SUCCEEDS JAMES S VANDERSLICE NOW MANAGING DIRECTOR OF THE COMPANY'S EASTERN REGION 9303010124 930301 BUSINESS OPTIMISM FOR FIRST QUARTER HOLDS STEADY WORLDWIDE SURVEY SAYS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WORLDWIDE BUSINESS OPTIMISM HELD STEADY FOR HIGHER FIRSTQUARTER 1993 SALES AND PROFIT A DUN & BRADSTREET CORP SURVEY SHOWS THE BUSINESS INFORMATION SERVICES COMPANY SURVEYED MORE THAN 11000 EXECUTIVES IN 16 COUNTRIES RESULTS OF THE SURVEY WERE MIXED ON A COUNTRYBYCOUNTRY BASIS SALES EXPECTATIONS AMONG US AND BRITISH EXECUTIVES MOVED HIGHER OFFSETTING WEAKER OPTIMISM IN MOST OF CONTINENTAL EUROPE PARTICULARLY IN GERMANY AND FRANCE DUN & BRADSTREET SAID OVERALL THE LEVEL OF OPTIMISM WAS ESSENTIALLY UNCHANGED FROM THE FOURTH QUARTER IN EUROPE THE COMPANY SAID EXPECTATIONS FOR HIGHER FIRSTQUARTER SALES FELL TO THEIR LOWEST LEVEL SINCE IT BEGAN TAKING THE SURVEY THERE IN THE SECOND QUARTER OF 1988 WITH THE EXCEPTION OF UNCHANGED EXPECTATIONS IN AUSTRIA AND A SHARP INCREASE IN BRITAIN SALES OPTIMISM FELL IN EVERY EUROPEAN COUNTRY SURVEYED IN ADDITION OPTIMISM FOR FIRSTQUARTER PROFIT DECLINED WITH EVERY EUROPEAN COUNTRY EXPECTING A DECREASE IN FIRSTQUARTER PROFIT EXCEPT THE UK EMPLOYMENT EXPECTATIONS IN ALMOST EVERY SURVEYED COUNTRY FELL SHARPLY IN THE UK HOWEVER SALES OPTIMISM REBOUNDED SUGGESTING THAT A RECOVERY IS SET TO TAKE HOLD THERE DUN & BRADSTREET SAID THE PROFIT OUTLOOK ROSE SHARPLY APPROACHING PRERECESSION LEVELS SALES AND PROFIT OPTIMISM CONTINUES TO TUMBLE IN GERMANY UNDERSCORING THE ONGOING IMPACT OF PERSISTENTLY HIGH INTEREST RATES AND A STRONG CURRENCY STEMMING FROM HIGHER THAN ANTICIPATED COSTS OF UNIFICATION ACCORDING TO JOSEPH W DUNCAN VICE PRESIDENT AND CHIEF ECONOMIST FOR THE COMPANY IN FRANCE FIRSTQUARTER SALES AND PROFIT OPTIMISM IN FRANCE FELL SHARPLY PARTLY BECAUSE OF THE CONTINUING IMPACT OF HIGHER INTEREST RATES JAPAN REMAINS A WEAK SPOT THE OUTLOOK FOR HIGHER SALES THERE HAS FALLEN OR REMAINED ESSENTIALLY UNCHANGED IN EACH OF THE PAST 10 QUARTERLY SURVEYS THE CONTINUING DETERIORATION OF BUSINESS CONFIDENCE IN JAPAN STEMS LARGELY FROM WEAKER DOMESTIC DEMAND FOR CONSUMER AND BUSINESS GOODS AND INCREASED COMPETITIVE PRESSURES IN INTERNATIONAL MARKETS THE COMPANY SAID IN NORTH AMERICA OVERALL FIRSTQUARTER SALES AND PROFIT OPTIMISM IS HOLDING STEADY HOWEVER A POOR RECEPTION BY BUSINESSES TO PRESIDENT CLINTON'S ECONOMIC PROPOSALS COULD CHOKE OFF THE CURRENT UPTURN IN THE US ECONOMY DUN & BRADSTREET SAID FIRSTQUARTER SALES OPTIMISM IN THE PACIFIC FELL SLIGHTLY ALTHOUGH SALES OPTIMISM IN NEW ZEALAND ROSE SHARPLY EXPECTATIONS FOR HIGHER FIRSTQUARTER PROFIT ROSE IN AUSTRALIA AND NEW ZEALAND 9303010123 930301 CALGENE RECEIVES US PATENT DAVIS CALIF CALGENE INC SAID IT RECEIVED A US PATENT FOR A PARTICULAR TYPE OF GENETICALLY ENGINEERED CELL THAT CAN POTENTIALLY BE USED TO IMPROVE THE QUALITY OF SUCH VEGETABLES AS BROCCOLI CAULIFLOWER AND BRUSSELS SPROUTS THE PATENT COVERS THE TECHNOLOGY FOR MAKING A MANMADE VERSION OF A BRASSICA CELL WHICH CALGENE SAID IT USED TO DEVELOP A NEW TYPE OF VEGETABLE OIL MADE WITH RAPESEED CALGENE SAID IT INTENDS TO LICENSE THE TECHNOLOGY TO OTHER BIOTECHNOLOGY COMPANIES FOR THEIR EXPERIMENTS 9303010122 930301 VIRGINIA PASSES LEGISLATION LIMITING GUN PURCHASES RICHMOND VA IN A STINGING DEFEAT FOR THE NATIONAL RIFLE ASSOCIATION THE VIRGINIA LEGISLATURE PASSED A MEASURE TO RATION HANDGUN PURCHASES TO ONE GUN A PERSON PER MONTH THE NRA WORKED HARD TO DEFEAT THE LEGISLATION RUNNING FULLPAGE NEWSPAPER ADS AND TV SPOTS THAT ARGUED THE GUNRATIONING PLAN WAS THE OPENING WEDGE FOR MORE WIDESPREAD HANDGUN CONTROL BUT THE BILL WAS SUPPORTED BY ALMOST EVERY MAJOR INSTITUTION IN THE STATE INCLUDING BUSINESS LEADERS WHO WERE DISTURBED BY REPORTS THAT VIRGINIA HAD BECOME A LEADING EAST COAST SUPPLIER OF HANDGUNS FOR STREET CRIMINALS THE HARDFOUGHT BATTLE HERE IN THE STATE CAPITAL DREW NATIONAL ATTENTION AND HELPED TO SET THE STAGE FOR ANOTHER EFFORT IN CONGRESS TO PASS THE SOCALLED BRADY BILL WHICH WOULD IMPOSE A WAITING PERIOD NATIONALLY FOR THE PURCHASE OF HANDGUNS THE VIRGINIA DECISION CAME ON THE HEELS OF A VOTE THURSDAY BY THE NEW JERSEY'S STATE ASSEMBLY TO OVERRIDE GOV JIM FLORIO'S VETO OF A BILL TO WEAKEN THE STATE'S BAN ON SEMIAUTOMATIC WEAPONS THE LAW REQUIRED ALL SEMIAUTOMATIC RIFLES OR SHOTGUNS NOT REGISTERED FOR TARGET SHOOTING TO BE SOLD DISABLED OR SURRENDERED BY MAY 1991 9303010121 930301 TEN DEFENDANTS SETTLE PART OF DUMPING CASE RIVERSIDE CALIF TEN DEFENDANTS ACCUSED OF DUMPING HAZARDOUS WASTE IN THE STRINGFELLOW ACID PITS NEAR LOS ANGELES AGREED TO PAY 436 MILLION TO SETTLE PART OF A HUGE CIVIL LAWSUIT OVER THE SITE THE AGREEMENT BRINGS TOTAL SETTLEMENTS MADE IN THE CASE TO 95 MILLION THE LAWSUIT WAS FILED IN SUPERIOR COURT HERE ON BEHALF OF ABOUT 3800 PEOPLE WHO ALLEGED THEY SUFFERED PERSONAL INJURIES AND PROPERTY DAMAGE FROM THE DUMPING THE DEFENDANTS INCLUDED ROCKWELL INTERNATIONAL CORP MCDONNELL DOUGLAS CORP ROHR INC AND THE COUNTY OF RIVERSIDE MELVYN WEISS AN ATTORNEY FOR THE PLAINTIFFS SAID THE PLAINTIFFS STILL HAVE A CASE PENDING AGAINST CALIFORNIA THE STRINGFELLOW PITS WHERE SOME 34 MILLION GALLONS OF TOXIC WASTES WERE DUMPED FROM 1956 TO 1972 ARE AMONG THE WORST TOXIC SUPERFUND SITES IN THE NATION IN A FEDERAL SUIT 18 COMPANIES AGREED LAST SUMMER TO PAY 150 MILLION FOR PAST AND FUTURE CLEANUP AT THE SITE 9303010120 930301 BUSINESS BRIEF SEVERN TRENT PLC UTILITY BIDS 474 MILLION FOR EAST WORCESTER WATER UK WATER UTILITY SEVERN TRENT PLC ANNOUNCED A 331 MILLION 474 MILLION CASH OFFER FOR EAST WORCESTER WATER PLC THAT HAS THE SUPPORT OF EAST WORCESTER'S BOARD SEVERN TRENT OFFERED 2432 3481 FOR EACH EAST WORCESTER ORDINARY SHARE 1920 FOR EACH NONVOTING ORDINARY SHARE AND 125 FOR EVERY 175 PREFERENCE SHARE THE OFFER VALUES EAST WORCESTER'S TWO CLASSES OF ORDINARY SHARES AT 287 MILLION AND THE PREFERENCE SHARES AT 44 MILLION 9303010119 930301 LOS ANGELES JUDGE RULES AGAINST PROPOSITION 103 LOS ANGELES SUPERIOR COURT JUDGE DZINTRA JANAVS RULED THAT REGULATIONS FOR IMPLEMENTING CALIFORNIA PROPOSITION 103 WHICH LIMITS AUTO INSURERS TO A BLANKET 10 RATE OF RETURN ARE UNCONSTITUTIONAL THE RULING MEANS THE BULK OF REBATES TO CALIFORNIA DRIVERS UNDER THE 1988 INITIATIVE WILL BE FURTHER DELAYED AND MAY BE SMALLER THAN EXPECTED THE INITIATIVE CALLED FOR A 20 ACROSSTHEBOARD REDUCTION IN PROPERTY AND CASUALTY INSURANCE RATES FOR CALIFORNIA DRIVERS AND REBATES FOR INSURANCE PREMIUMS PAID BETWEEN 1988 AND 1989 JUDGE JANAVS SAID THE STATE LACKED THE AUTHORITY TO LIMIT ALL INSURERS TO A 10 RATE OF RETURN THE RULING WAS MADE IN RESPONSE TO A LAWSUIT FILED AGAINST THE STATE BY 20TH CENTURY INSURANCE CO WOODLAND HILLS CALIF INSURANCE COMMISSIONER JOHN GARAMENDI SAID IN A STATEMENT THE STATE WILL APPEAL THE DECISION IF ALLOWED TO STAND MR GARAMENDI SAID THE DECISION THREATENS TO DOOM PROPOSITION 103 TO ENDLESS HEARINGS AND PLACES IN JEOPARDY BILLIONS OF DOLLARS IN ROLLBACKS 9303010118 930301 POLITICS & POLICY HOUSE GOP SEEKS PROBE OF MOVE BY BLACK CAUCUS PLAINSBORO NJ HOUSE REPUBLICANS HAVE CALLED FOR AN INVESTIGATION OF INTERVENTION BY THE CONGRESSIONAL BLACK CAUCUS IN THE FEDERAL PROSECUTION OF REP HAROLD FORD D TENN ON BANK FRAUD CHARGES IN LETTERS MADE PUBLIC DURING A WEEKEND GOP RETREAT HERE HOUSE MINORITY LEADER BOB MICHEL OF ILLINOIS AND OTHER PROMINENT REPUBLICANS ASKED THE DEMOCRATIC CHAIRMEN OF THE HOUSE AND SENATE JUDICIARY COMMITTEES TO LOOK INTO REPORTS THAT MEMBERS OF THE BLACK CAUCUS MET WITH JUSTICE DEPARTMENT OFFICIALS TO DISCUSS JURY SELECTION IN THE CASE AFTER THE MEETING WITH THE BLACK CAUCUS ACTING ATTORNEY GENERAL STUART GERSON DIRECTED THE US ATTORNEY IN MEMPHIS TO SUPPORT A MOTION BY MR FORD'S ATTORNEYS TO DISMISS A PREDOMINANTLY WHITE JURY SELECTED FOR THE TRIAL MR FORD IS BLACK THE US ATTORNEY RESIGNED IN PROTEST AND THE TRIAL JUDGE WHO DISMISSED THE MOTION SHARPLY CRITICIZED THE JUSTICE DEPARTMENT WE DON'T KNOW WHETHER GERSON WAS INFLUENCED SAID FLORIDA REP BILL MCCOLLUM BUT IT CERTAINLY LOOKS LIKE HE COULD HAVE BEEN 9303010117 930301 POLITICS & POLICY ATTORNEY GENERAL NOMINEE IS LEAST WEALTHY OF CABINET WASHINGTON IF JANET RENO IS CONFIRMED AS PRESIDENT CLINTON'S ATTORNEY GENERAL SHE WOULD HAVE THE DISTINCTION OF NOT ONLY BEING THE LAST CABINET MEMBER NAMED BUT ALSO THE LEAST WEALTHY HER 91000 SALARY AS PROSECUTOR IN MIAMI WOULD MAKE HER THE ONLY CABINET MEMBER WHO EARNED LESS THAN 100000 LAST YEAR HER NET WORTH ACCORDING TO BIOGRAPHICAL INFORMATION SUBMITTED TO THE SENATE JUDICIARY COMMITTEE IS 557793 WITH MORE THAN 60 OF THAT ATTRIBUTED TO HER RESIDENCE SHE OWNS NO SECURITIES BUT HAS A LIFE INSURANCE POLICY WITH A CASH VALUE OF 32000 HER CAR AND OTHER PERSONAL PROPERTY ARE WORTH 15000 AND SHE HAS ABOUT 13000 IN THE BANK MS RENO WHO HAS BEEN AN ELECTED PROSECUTOR SINCE 1978 ALSO HAS 155000 IN A STATE DEFERREDCOMPENSATION PROGRAM AND EXPECTS TO RECEIVE 4000 IN MONTHLY RETIREMENT PAYMENTS FOR LIFE BEGINNING IN THE YEAR 2000 WHEN SHE REACHES AGE 62 THE DOCUMENT PROVIDES NOTHING THAT WOULD SEEM TO POSE A SERIOUS PROBLEM TO HER IN CONFIRMATION HEARINGS WHICH MAY BEGIN NEXT WEEK IN ANSWER TO A QUESTIONNAIRE QUERY THAT ASKED IF SHE EVER BELONGED TO AN ORGANIZATION THAT DISCRIMINATED MS RENO NOTED HER MEMBERSHIP IN THE NATIONAL SOCIETY OF THE DAUGHTERS OF THE AMERICAN REVOLUTION I HAVE HEARD SOME CONCERN THAT THE SOCIETY MIGHT HAVE DISCRIMINATED SHE REPLIED BUT UPON CHECKING SEVERAL YEARS AGO AND TODAY I HAVE BEEN TOLD THAT THE SOCIETY DOES NOT DISCRIMINATE 9303010116 930301 WHO'S NEWS THREE OFFICIALS RESIGN AT BELMAC OVER STRATEGY ISSUE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL TAMPA FLA BELMAC CORP SAID ITS CHIEF EXECUTIVE AND TWO OTHER TOP OFFICERS QUIT IN A MANAGEMENT SHAKEUP SPARKED BY A DISPUTE OVER THE DRUG COMPANY'S STRATEGIC DIRECTION JEANFRANCOIS ROSSIGNOL THE 48YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESIGNED BELMAC SAID AS DID MAX HUGUET CHIEF FINANCIAL OFFICER BELMAC ALSO SAID VITTORIO FERRARIS SENIOR VICE PRESIDENT INTERNATIONAL OPERATIONS RESIGNED IN A STATEMENT BELMAC SAID THE DEPARTURES FOLLOWED A BOARD MEETING THAT FOCUSED ON DISAGREEMENTS BETWEEN THE BOARD AND THE INDIVIDUAL EXECUTIVES OVER THE IMPLEMENTATION OF THE COMPANY'S STRATEGIC PLAN THE THREE OFFICERS TWO OF WHOM ARE IN FRANCE COULDN'T BE REACHED FOR COMMENT BELMAC'S BOARD NAMED RON STEWART WHO IS 55 AND A DIRECTOR AS CHAIRMAN AND THE BOARD APPOINTED MICHAEL M HARSHBARGER THE 52YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER AS CHIEF EXECUTIVE THE DIRECTORS ALSO ELECTED ROBERT STOTE BELMAC'S SENIOR VICE PRESIDENT AND CHIEF SCIENCE OFFICER TO THE BOARD FILLING MR ROSSIGNOL'S VACANCY ASKED TO DETAIL THE DISPUTE THAT PROMPTED THE SHAKEUP MR HARSHBARGER SAID BELMAC TENDED TO BE OVERWEIGHTED TOWARD THE RESEARCH AND DEVELOPMENT SIDE HE ADDED THAT WHILE THE COMPANY WILL CONTINUE TO STRESS RESEARCH EFFORTS WE'LL FUND RESEARCH AND DEVELOPMENT IN A MORE PRIORITIZED FOCUSED WAY ASKED IF MR ROSSIGNOL RESIGNED VOLUNTARILY MR HARSHBARGER SAID HE HAD ADDING HE LEFT IN AN AMICABLE WAY MR HARSHBARGER SAID THE BOARD OFFERED HIM THE CHAIRMAN'S POST BUT HE DECLINED DEFERRING TO MR STEWART WHEN YOU HAVE A LOT OF TITLES CONCENTRATED IN ONE PERSON I'M NOT SURE THAT'S HEALTHY MR HARSHBARGER SAID EARLIER THIS MONTH BELMAC DISCLOSED EXPECTATIONS FOR FOURTHQUARTER RESULTS THAT WERE LOWER THAN ANALYSTS HAD EXPECTED THE COMPANY SAID IT EXPECTED TO REPORT A NET LOSS OF 128 MILLION OR 105 A SHARE THAT COMPARES WITH A LOSS OF 19 MILLION OR 22 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE IS EXPECTED TO HIT 5 MILLION COMPARED WITH 3 MILLION IN THE YEARAGO PERIOD THE COMPANY PREVIOUSLY SAID IT WOULD POST 72 MILLION IN NONRECURRING CHARGES FOR THE QUARTER THE COMPANY ATTRIBUTED MUCH OF ITS OPERATING LOSS TO MARKETING COSTS FOR THE ANTIBIOTIC BIOLID IN FRANCE ANALYSTS SAID THE COMPANY MADE MARKETING ERRORS IN INTRODUCING THAT PRODUCT INCLUDING RELYING ON AN OVERSIZED SALES FORCE IN RESPONSE BELMAC CUT THE FRENCH SALES FORCE AND DEVELOPED AN AUSTERITY PROGRAM 9303010115 930301 REVIEW & OUTLOOK EDITORIAL ASIDES THE ZOE JUDGES WE'VE BEEN PONDERING THE AFTERSHOCKS OF THE ZOEKIMBA AFFAIR AS IS KNOWN THE ADMINISTRATION IS MAKING HIGH OFFICIALS PROVE THEY AREN'T TAINTED BY MISHANDLING OF NANNIES SOCIAL SECURITY TAXES AND THE LIKE SO WE HAVE A QUESTION FOR SOMEONE TO ASK PRESIDENT CLINTON IF HE HOLDS ANOTHER NEWS CONFERENCE WILL THE 115 PEOPLE HE IS GOING TO BE ABLE TO NAME TO FEDERAL JUDGESHIPS HAVE TO DISCLOSE WHETHER THEY HAVE EVER EMPLOYED AN ILLEGAL ALIEN OR PAID SOCIAL SECURITY TAXES FOR PARTTIME HELP AND DOES IT COUNT IF ANY OF THESE PEOPLE ONLY PAID UP THEIR BACK TAXES POSTZOE 9303010114 930301 BUSINESS BRIEF ACCUHEALTH INC SEC INVESTIGATES POSSIBILITY OF FINANCIAL IMPROPRIETIES ACCUHEALTH INC SAID IT IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION FOR POSSIBLE FINANCIAL IMPROPRIETIES THE NEW YORK PHARMACY AND HOME HEALTHCARE CONCERN SAID IT IS CONDUCTING ITS OWN INVESTIGATION AND WILL COOPERATE WITH THE SEC THE COMPANY SAID IT BELIEVES IT FACES A MATERIAL LIABILITY FOR FAILING TO PAY TAXES ON CERTAIN REVENUE AND EMPLOYEE COMPENSATION ACCUHEALTH SAID IT BELIEVES SOME OF ITS TOP MANAGERS WHO ARE ALSO DIRECTORS OF THE COMPANY WERE AWARE OF AND MAY HAVE PARTICIPATED IN SCHEMES TO PAY OFFTHE BOOKS COMPENSATION TO THEMSELVES AND OTHER EMPLOYEES A SPOKESMAN COULDN'T BE REACHED FOR FURTHER DETAILS 9303010113 930301 BUSINESS BRIEF US JUDGE SETS BACK STEINHARDT BID FOR INTEGRATED RESOURCES' KEY ASSETS NEW YORK A FEDERAL BANKRUPTCY JUDGE MAY HAVE THROWN A WRENCH INTO PLANS BY MONEY MANAGERS STEINHARDT MANAGEMENT CO TO ACQUIRE THE MOST VALUABLE ASSETS OF INTEGRATED RESOURCES CO AT A HEARING JUDGE CORNELIUS BLACKSHEAR SAID A CHAPTER 11 REORGANIZATION PLAN PUT FORWARD BY INTEGRATED'S MANAGEMENT SHOULD BE CONSIDERED BEFORE ANY ALTERNATIVE PLANS ARE PUT FORWARD AT THE HEARING LAWYERS FOR THE REAL ESTATE CONCERN'S SENIOR CREDITORS SAY THAT STEINHARDT IS OFFERING TOO LITTLE FOR THE RIGHT TO OWN MUCH OF INTEGRATED'S ASSETS JUDGE BLACKSHEAR WILL HOLD A HEARING ON MARCH 8 TO CONSIDER APPROVAL OF DETAILS OF MANAGEMENT'S PLAN IF HE GRANTS SUCH APPROVAL THE PLAN WILL BE PUT OUT TO VOTE AMONG CREDITORS INTEGRATED HAS BEEN UNDER BANKRUPTCY COURT PROTECTION SINCE FEBRUARY 1991 ITS MOST VALUABLE ASSETS ARE LEASES WITH CORPORATE TENANTS AT REAL ESTATE SITES AROUND THE COUNTRY UNDER THE MANAGEMENT PLAN INTEGRATED'S ASSETS WOULD BE SOLD OFF PIECEMEAL AND THE SENIOR DEBTORS WOULD GET ABOUT 59 CENTS ON THE DOLLAR FOR THEIR 11 BILLION IN DEBT STEINHARDT AND THE JUNIOR DEBTORS WHO BACKED HIS PLAN HAVE SAID THAT THE PLAN PUT FORWARD BY INTEGRATED'S MANAGEMENT IS UNWORKABLE INSTEAD STEINHARDT PROPOSES TO FUND A PLAN UNDER WHICH SENIOR DEBTORS GET 49 CENTS ON THE DOLLAR AND JUNIOR DEBTORS GET THREE CENTS ON THE DOLLAR STEINHARDT MAY NOT BE COMPLETELY OUT OF THE RUNNING INDIVIDUALS CLOSE TO THE TWO SENIOR DEBT COMMITTEES SAID THEY'LL CONSIDER AN INCREASED OFFER FROM THE HUGELY SUCCESSFUL MONEY MANAGERS IN ADDITION EDWARD WEISFELNER A LAWYER FOR THE JUNIOR DEBTORS SAID THEY'RE CONSIDERING AN APPEAL OF JUDGE BLACKSHEAR'S RULING LAWYERS FOR STEINHARDT AND THE STEINHARDT PARTNER WORKING ON THE DEAL DID NOT RETURN PHONE CALLS SEEKING COMMENT THERE'S ALSO THE POSSIBILITY THAT THE MANAGEMENT PLAN WON'T WORK AS PROPONENTS OF STEINHARDT'S PLAN CONTEND BUT A REPRESENTATIVE OF THE SENIOR DEBT COMMITTEES WHICH HAVEN'T YET BACKED THE MANAGEMENT PLAN SAID THEY ARE NEGOTIATING INTENSELY WITH INTEGRATED'S MANAGEMENT TO MAKE SURE THEY ALL SUPPORT THE DETAILS OF THE PLAN PUT FORWARD TO JUDGE BLACKSHEAR ON MARCH 8 INTEGRATED IN A STATEMENT SAID THAT IT EXPECTS TO FILE A REVISED PLAN IN THE NEAR FUTURE 9303010112 930301 US LONG DISTANCE CALLS OFF SWAP WITH VALUEADDED BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO CONTINUED EROSION OF ITS STOCK PRICE FORCED US LONG DISTANCE CORP TO CALL OFF ITS STOCKSWAP ACQUISITION OF VALUEADDED COMMUNICATIONS INC A TELECOMMUNICATIONS MARRIAGE ONCE VALUED AT MORE THAN 100 MILLION US LONG DISTANCE SHARES HAVE FALLEN 25 SINCE THE JAN 14 ANNOUNCEMENT OF THE PLANNED MERGER US LONG DISTANCE HAD PROPOSED ISSUING 062 SHARE OF ITS COMMON STOCK FOR EACH OF VALUEADDED'S 94 MILLION SHARES OUTSTANDING AND PROMISED TO ISSUE ADDITIONAL SHARES TO GUARANTEE VALUEADDED SHAREHOLDERS AT LEAST 100 MILLION THE 100 MILLION FLOOR ON THE DEAL WAS ELIMINATED IN FEBRUARY AFTER US LONG DISTANCE SHARES HAD FALLEN 18 AND THE COMPANY WAS CONCERNED ABOUT OVER DILUTION THE MARKET HAS NOT BEEN MUCH KINDER TO VALUEADDED A CHICAGO CALL PROCESSOR TO LARGE TELEPHONE SYSTEM USERS IN NATIONAL OVERTHECOUNTER TRADING ITS SHARES CLOSED AT 10 AFTER THE MERGER ANNOUNCEMENT BUT FELL TO 7 ON FRIDAY DOWN 75 CENTS FRIDAY'S ANNOUNCEMENT ALSO SENT US LONG DISTANCE SHARES DOWN AGAIN LOSING 25 CENTS TO CLOSE AT 13625 A SHARE IN OVERTHECOUNTER TRADING THE COMPANY'S COMMON CLOSED AT 1825 THE DAY OF THE ACQUISITION ANNOUNCEMENT MARKET CONDITIONS DO NOT MAKE IT PRACTICAL TO CONTINUE THE NEGOTIATIONS SAID DENNIS R CASEY VALUEADDED'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER A SPOKESWOMAN FOR US LONG DISTANCE SAID THE REGIONAL LONGDISTANCE AND OPERATOR SERVICES CONCERN WAS DISAPPOINTED BUT STILL HOPED TO CONTRACT TO DO SOME LONGDISTANCE TELEPHONE BILLING FOR VALUEADDED THE TWO FIRMS WERE SCHEDULED TO TRANSFER VALUEADDED'S LONGDISTANCE BILLING TO US LONG DISTANCE NEXT WEEK IN ANTICIPATION OF CLOSING THE MERGER SHE SAID AT THE TIME OF THE PLANNED ACQUISITION'S ANNOUNCEMENT US LONG DISTANCE ALSO MADE THE UNUSUAL DISCLOSURE THAT PARRIS H HOLMES CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS TWICE PLEADED GUILTY TO GAMBLING CHARGES DURING THE LATE 1970S AND EARLY 1980S AND SERVED 10 MONTHS PROBATION FOR BOOKMAKING ON FOOTBALL GAMES MR HOLMES WAS A PRIVATE INVESTOR AND UNAFFILIATED WITH THE COMPANY AT THE TIME 9303010111 930301 LAW MILITARY MAGAZINE GETS JURY JUDGMENT REDUCED BOULDER COLO AP SOLDIER OF FORTUNE MAGAZINE HAS NEGOTIATED A REDUCTION IN A 43 MILLION JUDGMENT LEVIED AGAINST IT FOR PRINTING A MERCENARY AD INVOLVED IN A CONTRACT KILLING THE DEAL WILL SAVE THE MAGAZINE FROM BANKRUPTCY PUBLISHER ROBERT BROWN SAID FRIDAY HE WOULD NOT SAY HOW MUCH THE MAGAZINE WOULD PAY EXCEPT THAT IT WAS SUBSTANTIALLY LOWER THAN DAMAGES A FEDERAL JURY AWARDED TO TWO SONS OF RICHARD BRAUN WHO WAS SHOT TO DEATH OUTSIDE HIS SUBURBAN ATLANTA HOME IN 1985 STEVEN GLASSROTH ATTORNEY FOR THE SONS CONFIRMED THAT THEY HAD SETTLED FOR A LOWER AMOUNT BUT WOULD NOT SAY HOW MUCH HE SAID THEY DECIDED TO SETTLE BECAUSE THEY MIGHT HAVE RECEIVED LESS HAD THE MAGAZINE GONE BANKRUPT MR BRAUN'S SONS FILED A WRONGFULDEATH LAWSUIT AGAINST SOLDIER OF FORTUNE IN 1988 THE MAGAZINE LOST AND APPEALED UNSUCCESSFULLY THE SUPREME COURT LATER DECLINED TO REVIEW THE CASE THE BROTHERS CONTENDED THAT THEIR FATHER'S BUSINESS ASSOCIATE BRUCE GASTWIRTH ARRANGED THE KILLING THROUGH AN AD THAT BEGAN WITH THE WORDS GUN FOR HIRE MR GASTWIRTH AND RICHARD SAVAGE WHO PLACED THE AD WERE CONVICTED OF CONSPIRACY IN 1989 ALONG WITH TWO MEMBERS OF A RING OF HITMEN RUN BY MR SAVAGE 9303010109 930301 REVIEW & OUTLOOK EDITORIAL A COMMITMENT THAT SUCCEEDED WE ARE GOING THROUGH A PERIOD IN WHICH THE US IS UNCERTAIN OF ITS PROPER WORLD ROLE THE TRAGEDIES OF BOSNIA AND SOMALIA LOOK IRREDEEMABLY LIKE QUAGMIRES WE WON THE GULF WAR BUT ARE AT SEA ABOUT ANY CLEAR UNDERSTANDING OF THE REGION'S POLITICAL FUTURE RUSSIA SEEMS AN ENIGMA SECRETARY OF STATE CHRISTOPHER HOPS THE FIRST JET TO THE MIDDLE EAST SAND HOLE SEEKING COUNSEL FROM ASSAD OF SYRIA AN ACCUMULATION OF SUCH INDETERMINACIES MIGHT SAP THE SELFCONFIDENCE OF EVEN THE STRONGEST PEOPLE SO IT WOULD PERHAPS BE A BENEFIT TO LAY OUT THE RESULTS OF A LONGAGO AMERICAN COMMITMENT TO WORLD ORDER THAT IS NOW BEARING BRIGHT FRUIT THAT COMMITMENT WAS KOREA WHERE WE PREVENTED THE WORLD COMMUNIST MOVEMENT FROM ACHIEVING A GRAND SUCCESS WHEN THE FIGHTING STOPPED THE AMERICANS STAYED OCCUPYING THE BLEAK DEMILITARIZED ZONE THAT KEPT THE NORTH'S BRUTAL LEADERSHIP AT BAY WHILE THE SOUTH STRUGGLED TO JOIN THE WORLD COMMUNITY SOUTH KOREA SUCCEEDED SPECTACULARLY AND LAST WEEK IT ACHIEVED THE PEACEFUL DEMOCRATIC TRANSFER OF POWER FROM ONE LEADER TO ANOTHER THIS GOAL IS ONE OF THE REASONS THE US IS ENGAGED IN THE WORLD INCLUDING ITS TROUBLES SOUTH KOREA'S NEWLY ELECTED PRESIDENT IS KIM YOUNGSAM WHO SPENT MORE THAN A GENERATION IN THE POLITICAL WILDERNESS INCLUDING A 23DAY HUNGER STRIKE IN 1983 HIS INAUGURATION LAST WEEK SHOULD ELICIT A NOD OF GRATITUDE TO TWO MEN WHO IN VERY DIFFERENT WAYS MADE IT POSSIBLE ROH TAE WOO AND KIM DAEJUNG THE SON OF A SMALL FARMER MR ROH SAW COMBAT IN THE KOREAN WAR BEFORE ENTERING THE KOREAN MILITARY ACADEMY HE RETIRED AS A FOURSTAR GENERAL THEN JOINED THE NATIONAL ASSEMBLY IN 1985 HIS FINEST HOUR WAS IN 1987 WHEN PRESIDENT CHUN DOOHWAN NAMED MR ROH TO BE SOUTH KOREA'S NEXT PRESIDENT THE ANNOUNCEMENT TOUCHED OFF NATIONWIDE PROTESTS AGAINST YET ANOTHER SOLDIER BECOMING YET ANOTHER DICTATOR ENOUGH SOUTH KOREANS SAID AND ROH TAE WOO LISTENED IN JUNE 1987 HE ANNOUNCED AN EIGHTPOINT PLAN FOR DEMOCRATIZATION INCLUDING DIRECT ELECTION OF THE PRESIDENT AMNESTY FOR POLITICAL PRISONERS AND FREEDOM OF THE PRESS HE WENT ON TO WIN THE 1987 ELECTIONS AND TO PRESIDE OVER THE 1988 OLYMPIC GAMES AN EVENT THAT MANY SOUTH KOREANS STILL REGARD AS THEIR COUNTRY'S FINEST HOUR AS PRESIDENT MR ROH HAD A ROUGH RIDE FROM THE PUBLIC AT FIRST GLANCE IT'S HARD TO SEE WHY ECONOMIC GROWTH AVERAGED 83 DURING HIS FIVEYEAR TERM AND PER CAPITA GROSS NATIONAL PRODUCT ROSE FROM 4127 TO 6685 MR ROH'S NORDPOLITIK STRATEGY SAW SEOUL ESTABLISH RELATIONS WITH BOTH RUSSIA AND CHINA AND PUSH NORTH KOREA TO THE MARGINS OF INTERNATIONAL SOCIETY MANY SOUTH KOREANS WERE DISCONTENTED HOWEVER NOTING THAT THE ECONOMY WAS GROWING MORE SLOWLY AND THAT INFLATION WAS RISING ELECTIONS IN EMERGING DEMOCRACIES ARE RARELY PERFECT BUT THERE IS LITTLE DOUBT THAT THE LEGISLATIVE ELECTIONS IN MARCH AND THE PRESIDENTIAL ELECTION IN DECEMBER REFLECTED THE WILL OF THE SOUTH KOREAN PEOPLE MR ROH'S COMMITMENT TO ELECTIONS AND THE RULE OF LAW HAS MEANT THE EMPOWERMENT OF THE NATIONAL ASSEMBLY WHICH HAS UNQUESTIONED LEGITIMACY AS THE LEGISLATIVE VOICE OF THE SOUTH KOREAN PEOPLE THESE ARE ALL SUBSTANTIAL ACHIEVEMENTS AND WE SUSPECT HISTORY WILL JUDGE MR ROH MORE KINDLY THAN HIS FELLOW CITIZENS NOW DO BEFORE MR ROH DISCOVERED DEMOCRACY HOWEVER KIM DAEJUNG HAD ALREADY BEEN KIDNAPPED IMPRISONED THREATENED AND SENTENCED TO DEATH FOR IT FIRST ELECTED TO THE NATIONAL ASSEMBLY IN 1960 MR KIM HAS SPENT HIS ENTIRE POLITICAL LIFE IN OPPOSITION SAVED TWICE BY INTERVENTION FROM THE US GOVERNMENT HE WAS A STRONG AND CONSISTENT VOICE FOR DEMOCRACY A CENTRAL FIGURE IN THE 1987 PRODEMOCRACY DEMONSTRATIONS KIM DAEJUNG NEVER WAVERED IN HIS DEDICATION TO A FREE KOREA THERE ARE NOT MANY OTHER SOUTH KOREANS WHO CAN SAY THAT THREE TIMES MR KIM RAN FOR THE PRESIDENCY IN 1971 1987 AND 1992 AND THREE TIMES HE LOST AFTER THE DECEMBER ELECTION HE CONCEDED DEFEAT GRACEFULLY AND SAID HE WAS RETIRING FROM POLITICS THANKS TO THE EFFORTS OF THESE TWO MEN AND MILLIONS OF SOUTH KOREANS KIM YOUNGSAM TAKES OVER A HEALTHIER MORE HONEST SYSTEM THAN ANY OF HIS 13 PREDECESSORS SOUTH KOREA HAS ITS PROBLEMS OF COURSE NORTH KOREA STILL LOOMS THE FINANCIAL SYSTEM IS SO OSSIFIED THAT MR ROH'S GOVERNMENT APPEARED HESITANT TO COME NEAR IT IN CASE IT SHATTERED THE BIG QUESTION OF WHETHER SOUTH KOREA CAN MOVE THE NEXT STEP UP ON THE ECONOMIC LADDER IS STILL UNANSWERED THERE IS NO QUESTION THOUGH ABOUT THE COUNTRY'S DIRECTION IT IS FORWARD INTO THE COMMUNITY OF NATIONS AND THAT IS SOMETHING IN WHICH KOREANS AND THE AMERICANS WHO KEPT THEIR COMMITMENT CAN JUSTIFIABLY TAKE PRIDE 9303010108 930301 INTERNATIONAL RUSSIAN CHINESE FIRMS BARTER FRANKFURT A RUSSIAN MOTOR COMPANY AND AN AIRLINE MANUFACTURER HAVE AGREED TO SELL TWO MEDIUMRANGE PASSENGER AIRLINERS TO A CHINESE COMPANY IN A BARTER DEAL VALUED AT MORE THAN 67 MILLION ACCORDING TO THE NEWSPAPER IZVESTIA THE CONTRACT WAS SIGNED BETWEEN THE CHINESE COMPANY NAN'DE AND THE RUSSIAN FOREIGN ECONOMIC ASSOCIATION AVIAEXPORT WITH THE PARTICIPATION OF THE SAMARA STATE AVIATION PRODUCTION ASSOCIATION AND PYBINSK MOTOR CO THE PARTIES WERE NOT FURTHER IDENTIFIED UNDER THE TERMS THE RUSSIAN PARTIES WILL PROVIDE TWO TU154M PASSENGER AIRCRAFT TO NAN'DE IN EXCHANGE FOR FOOD AND CONSUMER GOODS 9303010107 930301 US BANCORP FINISHES OFFERING PITTSBURGH US BANCORP SAID IT SUCCESSFULLY COMPLETED A SECONDARY OFFERING OF 115 MILLION COMMON SHARES AT A PRICE OF 2450 A SHARE PART OF THE PROCEEDS WILL BE USED TO ADD CAPITAL TO ITS THREE RIVERS BANK UNIT TO CAPITALIZE THE APPROXIMATE 100 MILLION OF DEPOSITS TO BE ACQUIRED FROM INTEGRA NATIONAL BANK DURING THE SECOND QUARTER OF 1993 PROCEEDS ALSO WILL BE USED TO REDEEM ALL REMAINING OUTSTANDING PREFERRED STOCK ON APRIL 7 1993 AND FINANCE FUTURE ACQUISITIONS THE BANK HOLDING COMPANY NOW HAS 4127046 SHARES OUTSTANDING 9303010106 930301 WHO'S NEWS ADVANCED TECHNOLOGY LABORATORIES INC ADVANCED TECHNOLOGY LABORATORIES INC BOTHELL WASH KIRBY CRAMER CHAIRMAN EMERITUS OF HAZELTON LABORATORIES CORP WAS NAMED TO THE BOARD OF THIS MEDICAL EQUIPMENT COMPANY BRINGING MEMBERSHIP TO SEVEN 9303010105 930301 WHO'S NEWS ROYAL OAK'S CHIEF WITTE IS OUT TO PROVE SHE CAN TURN A FAILED MINE INTO GOLD BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL MARGARET WITTE ONE OF ONLY A HANDFUL OF WOMEN EXECUTIVES IN THE TRADITIONALLY MALEDOMINATED MINING INDUSTRY IS DEFYING CONVENTIONAL WISDOM BY TRYING TO PROVE THAT CANADA'S FAILED COLOMAC GOLD MINE CAN BE RUN PROFITABLY THE PROJECT IS ESPECIALLY MEANINGFUL TO MRS WITTE BECAUSE SHE LAUNCHED HER MINING CAREER BY BUYING COLOMAC IN 1986 BUT LOST CONTROL OF IT THREE YEARS LATER WHEN ONE OF THE MINE'S INVESTORS TOOK OVER NOW THE COMPANY SHE HEADS ROYAL OAK MINES INC OF VANCOUVER BRITISH COLUMBIA HAS AGREED IN PRINCIPLE TO PAY ABOUT 10 MILLION CANADIAN DOLLARS US 8 MILLION IN STOCK TO ACQUIRE THE MINE FROM THE SAME INVESTOR A SUBSIDIARY OF NORTHGATE EXPLORATION LTD OF TORONTO NORTHGATE SPENT SOME C200 MILLION TO START UP THE MINE IN 1990 BUT WAS FORCED TO SHUT IT A YEAR LATER AFTER OPERATING PROBLEMS AND A DROP IN GOLD PRICES LEFT THE COMPANY SHORT OF CASH THE 39YEAROLD MRS WITTE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROYAL OAK HAS A REPUTATION FOR TURNING AROUND UNPROFITABLE MINING OPERATIONS SHE SAYS SHE WILL REOPEN COLOMAC ONLY IF SHE CAN MINE GOLD THERE FOR LESS THAN US300 AN OUNCE A DIFFICULT GOAL BECAUSE OF THE MINE'S REMOTE LOCATION IN THE NORTHWEST TERRITORIES AND ITS LOW GRADE OF ORE WITH THE MARKET PRICE OF GOLD HOVERING AROUND US330 AN OUNCE MRS WITTE HAS LITTLE ROOM FOR ERROR RELAUNCHING THE COLOMAC MINE WHICH WOULD TAKE PLACE IN 1994 AT THE EARLIEST COULD INCREASE ROYAL OAK'S ANNUAL GOLD PRODUCTION BY SOME 180000 OUNCES MORE THAN HALF THE COMPANY'S 1993 EXPECTED OUTPUT OF 335000 OUNCES IT ALSO WOULD REPRESENT A PERSONAL VICTORY FOR MRS WITTE WHO HAS CALLED THE PROJECT OUR BABY AND SAYS SHE WAS BITTER ABOUT LOSING CONTROL SHE TOOK THE MANTLE OF THIS PROJECT FROM DAY ONE AND GOT A BLACK EYE IF SHE CAN MAKE IT WORK IT WILL SHOW THAT SHE TRULY IS A SOLID FUNDAMENTAL MINE OPERATOR AND THAT THE PROJECT WAS CONCEIVED PROPERLY SAYS BARRY ALLEN A GOLD ANALYST AT DEACON BARCLAYS DE ZOETE WEDD LTD IN TORONTO WHEN MRS WITTE ACQUIRED THE COLOMAC DEPOSIT MANY THOUGHT SHE WAS ASKING FOR TROUBLE STILL SHE MANAGED TO RAISE THE CASH NEEDED TO DEVELOP A MINE AT THE SITE WITH THE MINE PARTIALLY COMPLETED HOWEVER NORTHGATE WHICH HAD PUT UP MOST OF THE EQUITY BACKING CONTESTED HER CONTROLLING POSITION AND ULTIMATELY BOUGHT HER OUT MRS WITTE ADMITS THAT AT THE TIME SHE WAS NAIVE ABOUT HOW BUSINESS WAS DONE STILL SHE SAYS SHE WAS BITTER ABOUT COLOMAC BECAUSE I KNEW WE COULD GET IT BUILT AND MAKE A SUCCESS OUT OF IT I DIDN'T BELIEVE THAT NORTHGATE HAD THE EXPERTISE TO MAKE IT A SUCCESS SHE ADDS PATRICK DOWNEY NORTHGATE'S CHIEF FINANCIAL OFFICER SAYS HIS COMPANY IS TREATING THE SALE OF COLOMAC BACK TO MRS WITTE AS A BUSINESS PROPOSITION WE WOULDN'T WANT TO GET INTO ANY PERSONALITY ISSUES MRS WITTE ALSO DESCRIBES HER COLOMAC OFFER AS PURELY A BUSINESS DECISION SHE BELIEVES SHE CAN CUT COSTS AT THE MINE PARTLY BY HANDLING CERTAIN ADMINISTRATIVE FUNCTIONS FROM ROYAL OAK'S OFFICES IN YELLOWKNIFE 30 MINUTES AWAY BY AIR AND ROYAL OAK'S COST BASE WOULD BE LOWER THAN NORTHGATE'S BECAUSE THE COLOMAC MINE IS TO BE SOLD FREE OF DEBT LENDERS TO THE PROJECT MAINLY BANK OF AMERICA'S CANADIAN SUBSIDIARY WROTE DOWN A C90 MILLION LOAN LONG AGO WHAT COLOMAC NEEDS TO GET UP AND RUNNING AGAIN IS CAREFUL HANDSON ATTENTION AND THAT IS HER MRS WITTE'S FORTE SHE'LL BE UP THERE WITH HER BOOTS ON TRYING TO GET THIS THING SLOGGING AGAIN SAYS WILLIAM SHERIDAN ROYAL OAK'S LAWYER AND A COMPANY DIRECTOR ROYAL OAK ESTIMATES THAT REOPENING COLOMAC WOULD COST ABOUT C15 MILLION EVEN IF THE MINE ISN'T RESTARTED MRS WITTE CLAIMS THE C10 MILLION PURCHASE PRICE COULD BE RECOUPED BY SELLING THE EQUIPMENT AT THE SITE THE PURCHASE OF THE MINE IS EXPECTED TO CLOSE AT THE END OF THIS MONTH 9303010104 930301 BUSINESS BRIEFS KEYCORP COMPLETED THE ACQUISITION OF NATIONAL SAVINGS BANK OF ALBANY IN A STOCK SWAP VALUED AT ABOUT 694 MILLION NUKOTE HOLDING INC ACQUIRED FUTURE GRAPHICS TERMS WEREN'T DISCLOSED LM ERICSSON TELEPHONE CO SIGNED A CONTRACT WITH GUANGDONG MOBILE COMMUNICATIONS CORP TO SUPPLY A DIGITAL CELLULAR SYSTEM TO THE PEARL RIVER DELTA REGION IN SOUTHERN CHINA TERMS WEREN'T DISCLOSED AIRCO GASES THE US UNIT OF BRITAIN'S BOC GROUP PLC INCREASED PRICES 5 TO 7 FOR CERTAIN HIGHPURITY SPECIAL GASES AND 8 FOR MEDICAL GASES NEW PLAN REALTY TRUST COMPLETED THE PURCHASE OF THE 101500SQUAREFOOT KMART SHOPPING CENTER IN VIENNA WVA AND HAS NOW TAKEN TITLE TO ALL FOUR SHOPPING CENTERS IT AGREED TO BUY LAST YEAR FOR 532 MILLION DRESSER INDUSTRIES INC COMPLETED ITS ACQUISITION OF BREDERO PRICE HOLDING BV FOR ABOUT 160 MILLION HOENIG GROUP INC AGREED TO ACQUIRE AXEHOUGHTON ASSOCIATES INC TERMS WEREN'T DISCLOSED 9303010103 930301 CREDIT RATINGS STANDARD & POOR'S CUTS RATINGS ON THE DEBT OF MEMOREX TELEX DALLAS MEMOREX TELEX CORP'S RATINGS ON 510 MILLION OF DEBT WERE LOWERED BY STANDARD & POOR'S CORP WHICH CITED THE COMPUTER EQUIPMENT MAKER'S WEAK OPERATING PERFORMANCE AND THE EXPECTATION OF DIFFICULT NEARTERM MARKET CONDITIONS S&P LOWERED THE RATING ON MEMOREX 10 SENIOR GUARANTEED NOTES DUE 1998 TO SINGLEBMINUS FROM SINGLEB IN LIEU OF CASH IN FEBRUARY MEMOREX A UNIT OF MEMOREX TELEX NV AMSTERDAM PAID SEMIANNUAL INTEREST ON THE NOTES IN ADDITIONAL SENIOR NOTES S&P SAID ADDING THAT THE COMPANY'S DEBT BURDEN WAS ONEROUS AND THE RATINGS OUTLOOK REMAINS NEGATIVE MEMOREX HAD A NET LOSS OF 120 MILLION IN THE NINE MONTHS ENDED DEC 31 AND ANNOUNCED THAT ITS FINAL QUARTER HISTORICALLY ITS STRONGEST WILL NOT SHOW MUCH IMPROVEMENT S&P SAID PRICING COMPETITION AND WORLDWIDE ECONOMIC WEAKNESS CONTINUE TO HURT REVENUE AND GROSS MARGINS S&P SAID FUTURE PERFORMANCE IS UNCERTAIN BECAUSE OF A CURRENT RESTRUCTURING EFFORT THE AGENCY SAID MEMOREX HAS RECEIVED WAIVERS FROM ITS LENDERS FOR THE CURRENT QUARTER FOR COMPLIANCE WITH ITS DEBT COVENANTS S&P SAID CURRENT LIQUIDITY WITH CASH BALANCES OF ABOUT 40 MILLION SHOULD SUPPORT OPERATIONS OVER THE NEAR TERM S&P SAID MEMOREX OFFICIALS COULDN'T BE REACHED TO COMMENT 9303010102 930301 DIVIDEND NEWS INTEL CORP PLANNING A 2FOR1 STOCK SPLIT SANTA CLARA CALIF INTEL CORP SAID IT PLANS A 2FOR1 STOCK SPLIT TO MAKE ITS SHARES MORE ATTRACTIVE TO INDIVIDUAL INVESTORS THE PRICE OF INTEL'S STOCK HAS ROCKETED TO RECORD LEVELS DURING THE PAST FEW MONTHS MORE THAN DOUBLING SINCE HITTING A LOW OF 4650 A SHARE IN MAY 1992 THE GAIN IN STOCK PRICE REFLECTS INTEL'S RISING STATUS AS THE DOMINANT SUPPLIER OF THE MICROPROCESSORS THAT ARE USED AS THE CORE OF MOST PERSONAL COMPUTERS CURRENTLY PRODUCED IN NATIONAL OVERTHECOUNTER TRADING ON FRIDAY INTEL SHARES CLOSED AT 11650 DOWN 50 CENTS IF APPROVED THE SPLIT WILL BE THE COMPANY'S NINTH STOCK SPLIT SINCE INTEL'S INITIAL PUBLIC OFFERING IN 1971 A SHARE OF INTEL COMMON STOCK IN 1971 WILL HAVE SPLIT INTO NEARLY 38 SHARES AFTER THE SPLIT INTEL WILL HAVE 418 MILLION SHARES OUTSTANDING INTEL'S SHAREHOLDERS MUST APPROVE THE SPLIT IN A MAY 5 VOTE IN A RELATED MOVE INTEL WILL ALSO ASK SHAREHOLDERS TO APPROVE AN INCREASE IN THE NUMBER OF ITS AUTHORIZED SHARES OR NEW COMMON SHARES THE COMPANY MAY ISSUE TO 14 BILLION FROM 350 MILLION AN INTEL SPOKESWOMAN SAID AN INCREASE IN AUTHORIZED SHARES WILL GIVE THE COMPANY MORE FLEXIBILITY TO RAISE PROCEEDS FOR GENERAL CORPORATE PURPOSES 9303010101 930301 G7 MEETING PRAISES CLINTON ECONOMIC PLANS BENTSEN FAILS IN OBJECTIVE TO CUT GERMAN RATES RAISE JAPAN'S SPENDING BY DAVID WESSEL AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON TREASURY SECRETARY LLOYD BENTSEN COLLECTED PLAUDITS FROM HIS FOREIGN COUNTERPARTS FOR PRESIDENT CLINTON'S ECONOMIC POLICIES BUT CAME AWAY WITHOUT ANY TANGIBLE STEPS TOWARD HIS GOALS OF LOWER GERMAN INTEREST RATES AND INCREASED JAPANESE GOVERNMENT SPENDING WE CAN'T CARRY THIS WORLD TO PROSPERITY BY OURSELVES MR BENTSEN SAID AFTER A FIVEANDAHALFHOUR MEETING WITH FINANCE MINISTERS AND CENTRAL BANKERS FROM THE SEVEN MAJOR INDUSTRIALIZED NATIONS BUT US TREASURY OFFICIALS SAID MR BENTSEN SUCCEEDED IN PUTTING HIS MARK ON THE GROUP OF SEVEN AND IN LAYING THE FOUNDATION FOR MORE CONCRETE PROGRESS WHEN G7 HEADS OF STATE MEET FOR AN ECONOMIC SUMMIT IN TOKYO IN JULY WITH HIS COUNTERPARTS IN BRITAIN FRANCE ITALY CANADA AND TO A LESSER EXTENT GERMANY CONFRONTING VARYING DEGREES OF POLITICAL UNCERTAINTY MR BENTSEN ARRIVED IN LONDON AS AN EMISSARY OF A POPULAR GOVERNMENT WITH A NEW POLICY TO SELL ALTHOUGH PRESIDENT CLINTON'S TRADE SPEECH AT AMERICAN UNIVERSITY ON FRIDAY WASN'T SCHEDULED TO COINCIDE WITH THE G7 MEETING MR BENTSEN MADE SURE THAT THE SPEECH HAD A MESSAGE FOR THE OTHER SIX COUNTRIES YOU HAVE BEEN SAYING TO US FOR YEARS THAT WE MUST INCREASE INVESTMENT IN OUR OWN EDUCATION AND TECHNOLOGY TO IMPROVE PRODUCTIVITY MR CLINTON SAID WE HAVE DONE IT NOW YOU MUST WORK WITH US IN GERMANY IN JAPAN AND IN OTHER NATIONS TO PROMOTE GLOBAL GROWTH MR BENTSEN'S STAFF MADE CERTAIN THAT HIS COUNTERPARTS GOT TRANSCRIPTS OF THE ADDRESS BEFORE THE SATURDAY MEETING STARTED ALTHOUGH THEY DIDN'T GET A FACSIMILE COPY UNTIL AFTER 10 PM FRIDAY IN LONDON SIX HOURS AFTER THE PRESIDENT SPOKE THE PRESIDENT'S DEFICITREDUCTION PLAN APPEARED TO WIN FAVOR FROM THE OTHER NATIONS DONALD MAZANKOWSI CANADA'S FINANCE MINISTER WENT SO FAR AS TO SAY MR BENTSEN WAS GREETED WITH EXPRESSIONS OF GRATITUDE BUT MR BENTSEN SAID HE DIDN'T GET ANY COMMITMENTS FROM GERMANY OR JAPAN IN RETURN A SENIOR US TREASURY OFFICIAL MEETING WITH REPORTERS IN LONDON MADE NO SECRET OF HIS OBJECTIVES I'D LIKE TO SEE A FURTHER DECLINE IN GERMAN INTEREST RATES HE SAID I'D LIKE TO SEE MORE STIMULUS IN JAPAN WITH OTHER EUROPEAN ECONOMIES SUFFERING THE SIDEEFFECTS OF HIGH GERMAN INTEREST RATES THEO WAIGEL GERMANY'S FINANCE MINISTER TOLD REPORTERS THERE IS SOME SCOPE FOR THE GERMAN CENTRAL BANK TO REDUCE RATES AMID SIGNS OF SLOWING INFLATION SLOWING MONEY GROWTH AND MODERATE WAGE INCREASES IF THAT PROCESS CONTINUES SAID HELMUT SCHLESINGER PRESIDENT OF THE BUNDESBANKIT GIVES US MORE MANEUVERING ROOM US OFFICIALS ARGUED AS DID THE BUSH ADMINISTRATION THAT THE GERMAN GOVERNMENT SHOULD REDUCE ITS DEFICIT SO THE BUNDESBANK CAN BRING DOWN RATES SUBSTANTIALLY BUT YOSHIRO HIYASHI JAPAN'S FINANCE MINISTER DIDN'T GIVE ANY HINT TO REPORTERS NOR OFFICIALS SAID TO HIS FOREIGN COUNTERPARTS THAT JAPAN IS YET CONVINCED THAT ITS GOVERNMENT SHOULD SPEND MORE THAN IT ALREADY HAS PROPOSED TO REVIVE ITS TROUBLED ECONOMY OTHER COUNTRIES SAY JAPAN IS THE ONLY G7 NATION WITH THE FISCAL STRENGTH TO INCREASE SPENDING AND CUT TAXES TO STIMULATE DOMESTIC DEMAND EXCHANGE RATES WERE DISCUSSED BUT WEREN'T A MAIN FOCUS OF SATURDAY'S MEETING DESPITE RECENT TENSION BETWEEN US AND JAPAN STEMMING FROM MR BENTSEN'S PUBLIC CALL FOR A STRONGER YEN AT THE SUGGESTION OF MR BENTSEN THE MINISTERS DIDN'T PRODUCE ANY WRITTEN COMMUNIQUE A CHANGE THAT APPEARED TO BE WIDELY WELCOMED NOR DID THEY HOLD A JOINT NEWS CONFERENCE THE LACK OF AN EMPHASIS ON CURRENCY RATES GAVE A BOOST TO THE DOLLAR WHICH IN RECENT WEEKS HAD BEEN PUSHED DOWN AGAINST THE YEN ON EXPECTATIONS THAT POLICY MAKERS WOULD PUSH FOR A STRONGER JAPANESE CURRENCY AS A MEANS OF NARROWING JAPAN'S TRADE SURPLUS THE FINANCE MINISTERS AND CENTRAL BANKERS APPARENTLY DIDN'T AGREE ON ANY SPECIFIC WAYS TO AID RUSSIA BUT TREASURY OFFICIALS SAID THAT MR CLINTON'S MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN COULD BE THE OCCASION FOR FURTHER ARTICULATION OF WESTERN THINKING ON THE ISSUE IN HIS SPEECH FRIDAY MR CLINTON WARNED RUSSIA OF THE DANGERS OF HYPERINFLATION AND HELD OUT THE PROMISE OF SIGNIFICANTLY MORE FINANCIAL AID REMEMBER HE SAID THAT THE MARSHALL PLAN ITSELF FINANCED ONLY A SMALL FRACTION OF POSTWAR INVESTMENTS IN EUROPE IT WAS A MAGNET A WAY OF STARTING A PROCESS THAT TURNED OUT TO PRODUCE AN ECONOMIC MIRACLE