PITNEY BOWES INC SAID IT INTRODUCED A LINE OF COPIER MACHINES USING ARTIFICIAL INTELLIGENCE THAT RESULTS IN IMPROVED COPY QUALITY AND MACHINE PERFORMANCE THE STAMFORD CONN COMPANY SAID ITS SMART IMAGE COPIER SERIES SIMULATES HUMAN INTELLIGENCE BY PROCESSING INTERNAL DATA AND THEN MAKING ADJUSTMENTS TO THE COPIER'S FUNCTIONING THE SERIES CONSISTS OF THREE MODELS THAT MAKE 17 COPIES A MINUTE 26 COPIES A MINUTE AND 32 COPIES A MINUTE AND ARE PRICED AT 3595 4695 AND 5195 RESPECTIVELY 9303010099 930301 CORRECTIONS & AMPLIFICATIONS DOUGLAS MACMASTER IS A RETIRED SENIOR VICE PRESIDENT OF MERCK & CO IN AN ARTICLE FRIDAY ABOUT MEDCO CONTAINMENT SERVICES INC IT WAS INCORRECTLY STATED THAT MR MACMASTER IS CURRENTLY A SENIOR VICE PRESIDENT OF MERCK LOUI MICHEL CIE A MAKER OF DECORATIVE FRAMES IS BASED IN GARDENA CALIF IN A WHO'S NEWS ARTICLE TUESDAY ABOUT MONTGOMERY WARD & CO LOUI MICHEL WAS INCORRECTLY IDENTIFIED AS BEING BASED IN BOCA RATON FLA 9303010098 930301 FOREIGN INVESTMENT IN RUSSIA PICKS UP AS PRIVATIZATION REFORM EASE THE WAY BY ELISABETH RUBINFIEN AND LAURIE HAYS STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW SINCE 1991 GENERAL ELECTRIC CO HAS BEEN SHEPHERDING A VENTURE WITH A MOSCOW INSTITUTE TO PROVIDE HIGH TECHNOLOGY MEDICAL EQUIPMENT TO RUSSIAN HOSPITALS GENERAL ELECTRIC APPROACHED THE PROJECT GINGERLY AT FIRST WHEN THE COLLAPSE OF THE CENTRALLY RUN ECONOMY MEANT THAT THE STATE WOULD NO LONGER BE THE SOLE BUYER MARKETING BECAME MORE COMPLICATED AND PROGRESS SLOWED EVEN FURTHER BUT BY THE END OF LAST YEAR AS ECONOMIC REFORMS DEEPENED AND A MARKET SYSTEM STARTED TO TAKE HOLD THE PARTNERS BEGAN TO CONSIDER A MORE WESTERN APPROACH MIGHT WORK THIS YEAR GE PLANS TO START PRODUCING MEDICAL COMPONENTS FOR THE LOCAL MARKET AT A FACTORY CONNECTED TO THE INSTITUTE NOW IT'S MUCH MORE SERIOUS SAYS RICHARD AELIONMOSS GE'S CHIEF REPRESENTATIVE IN MOSCOW NOTWITHSTANDING ALL THE DIFFICULTIES 1992 IN SUMMARY WAS A VERY DIFFICULT BUT A VERY GOOD YEAR IN MOVING BUSINESS IN A GOOD DIRECTION FOREIGN INVESTMENT IN RUSSIA HAS STARTED TO TAKE OFF AS BUSINESSES BECOME MORE CONFIDENT THAT CHANGES IN THE ECONOMY ARE HERE TO STAY RECENT NEW APPOINTMENTS IN THE RUSSIAN GOVERNMENT LEAD MANY EXECUTIVES TO DESCRIBE THEMSELVES AS ONLY CAUTIOUSLY OPTIMISTIC BUT DOZENS OF INVESTMENT DEALS HAVE BEEN SIGNED IN THE PAST YEAR AND AS A KEY COMPONENT OF REFORMS THE PRIVATIZATION PROGRAM IS EXPECTED TO BOOST THAT INVESTMENT EVEN FURTHER FOREIGN BUSINESSES ARE BUYING INTO NEWLY PRIVATIZED RUSSIAN VENTURES EITHER AS NEW INVESTMENTS OR TO PROTECT EXISTING TIES COMPARATIVE STATISTICS ON DIRECT FOREIGN INVESTMENT IN RUSSIA AND THE OTHER 14 FORMER SOVIET REPUBLICS AREN'T READILY AVAILABLE BUT IN THE FIRST SIX MONTHS OF 1992 FOREIGN FIRMS DECLARED NEW CAPITAL INVESTMENT COMMITMENTS IN RUSSIA OF 23 BILLION BRINGING THE TOTAL OF DECLARED FOREIGN CAPITAL TO 65 BILLION ACCORDING TO THE NEW RUSSIAN AGENCY OF INTERNATIONAL COOPERATION AND DEVELOPMENT WHILE FOREIGNERS ARE ESTIMATED TO ACTUALLY HAVE SPENT ONLY ABOUT 15 BILLION OF THE DECLARED INVESTMENT COMMITMENTS SO FAR THERE ARE OTHER INDICATORS OF RISING INTEREST THE NUMBER OF FOREIGN COMPANIES REGISTERED TO DO BUSINESS IN RUSSIA DOUBLED IN THE FIRST HALF OF THE YEAR TO 4156 ACCORDING TO THE AGENCY US COMPANIES WHICH HESITATED LONGER THAN MANY OF THEIR EUROPEAN COUNTERPARTS HAVE BEEN STREAMING IN DURING THE PAST YEAR THE US COMMERCIAL OFFICE LISTS 354 AMERICAN COMPANIES WITH OFFICES IN RUSSIA NOW AS COMPARED WITH 88 AT THE TIME OF THE AUGUST 1991 COUP ATTEMPT EUROPEAN INVOLVEMENT IS ALSO GROWING BY LAST JUNE ITALIANS FOR EXAMPLE HAD 208 JOINT VENTURES IN RUSSIA COMPARED WITH 170 EIGHT MONTHS EARLIER WHILE FOREIGN BUSINESSES WORRY THAT THE NEW PRIME MINISTER VIKTOR CHERNOMYRDIN DOESN'T SHARE THE ZEAL FOR REFORM OF HIS PREDECESSOR YEGOR GAIDAR THEY SAY IT IS TOO EARLY TO SAY WHAT THE NEW CABINET WILL DO TO AFFECT FOREIGN INVESTORS AND THE REFORM PROCESS THE DECISION TO RETAIN MOST OF MR GAIDAR'S ECONOMIC REFORM TEAM AND TO BRING IN FORMER RUSSIAN FINANCE MINISTER BORIS FYODOROV ARE TAKEN AS GOOD SIGNS OF COMMITMENT TO REFORM BUT MR CHERNOMYRDIN'S RECENT DECREE TO CONTROL PRICES ON CERTAIN BASIC PRODUCTS AND TO ISSUE LARGE LOWCOST LOANS TO THE GAS INDUSTRY ARE SEEN AS BAD SIGNS OF BACKTRACKING IF MONETARY POLICY ISN'T ADDRESSED PROPERLY AND BROUGHT INTO A STABLE ENVIRONMENT IT COULD DESTROY PRIVATIZATION AND ECONOMIC REFORMS AS A WHOLE SAYS BORIS JORDAN HEAD OF THE MOSCOW OFFICE FOR CREDIT SUISSE FIRST BOSTON ONE OF THE MOST IMPORTANT SIGNS EVERYONE IS WATCHING IS THE PROGRESS OF THE PRIVATIZATION PROGRAM ANATOLI CHUBAIS A KEY MEMBER OF GAIDAR'S REFORM TEAM WHO IS IN CHARGE OF THE PROGRAM SAYS PROGRESS HAS BEEN BETTER THAN EXPECTED SOME 600 LARGE COMPANIES BY THE END OF LAST YEAR WERE REBORN AS JOINTSTOCK COMPANIES AND 4700 MORE ARE EXPECTED TO DO SO THIS YEAR SMALL SCALE PRIVATIZATION HAS ALSO MOVED FORWARD AT WHAT THE COMMITTEE CONSIDERS A GOOD PACE ABOUT 40000 SERVICE AND TRADE COMPANIES HAVE ALREADY BEEN PRIVATIZED IN CITIES AROUND RUSSIA THIS YEAR WIDESCALE PUBLIC PARTICIPATION IN PRIVATIZATION IS DUE TO BEGIN AS INDIVIDUALS ARE ALLOWED TO USE THEIR PRIVATIZATION VOUCHERS TO BUY SHARES IN PRIVATIZING ENTERPRISES SOME 120 MILLION RUSSIANS HAVE RECEIVED THEIR VOUCHERS AND THE REMAINING 30 MILLION VOUCHERS ARE DUE TO BE DISTRIBUTED THIS MONTH FOREIGNERS WHO ARE ALREADY INVOLVED IN THE RUSSIAN MARKET SOME MONTHS AGO BEGAN NEGOTIATING WITH POTENTIAL PARTNERS TO BUY SHARES IN THE PRIVATIZING ENTERPRISE IN SOME CASES THEIR EXISTING TIES WITH RUSSIAN PARTNERS GIVE THEM GOOD ACCESS TO SUCH INVESTMENT OPPORTUNITIES OTIS ELEVATOR CO FORMED JOINT VENTURES HERE THAT HAVE BUILT A FACTORY IN ST PETERSBURG AND PLAN TO COMPLETE ANOTHER BY THE END OF THIS YEAR IN MOSCOW AS PART OF A LONGTERM INVESTMENT STRATEGY IN RUSSIA AND UKRAINE NOW THEIR MOSCOW PARTNER SHCHERBINKA LIFT HAS PRIVATIZED AND OTIS IS NEGOTIATING TO BUY UP TO A 30 SHARE THE ADVANTAGE FOR OTIS IS ACCESS TO ASSETS AT A GOOD VALUE MANUFACTURING AND STORAGE THAT CAN BE READILY ADAPTED TO OTIS' NEEDS AND AN EXISTING MARKET BASE FOR THE FUTURE IN OTHER CASES FOREIGN COMPANIES SEE INVESTMENTS IN PRIVATIZING ENTERPRISES AS THE BEST WAY TO ENTER THE MARKET AGGRESSIVELY WHEN RJ REYNOLDS TOBACCO INTERNATIONAL A DIVISION OF RJR NABISCO INC DECIDED TO BECOME THE FIRST US CIGARETTE MAKER TO BE PRODUCING IN RUSSIA IT LOOKED FOR A PRIVATIZED COMPANY TO BUY A STAKE IN RATHER THAN SETTING UP A JOINT VENTURE IN JULY IT BOUGHT A 52 STAKE IN THE FORMER URITSKI TOBACCO FACTORY IN ST PETERSBURG FOR AN UNDISCLOSED AMOUNT ALONG WITH PRIVATIZATION THE CURRENT GOVERNMENT IS TAKING PAINS TO SAY THAT IT WANTS TO ENCOURAGE FOREIGN INVESTMENT IN OTHER WAYS ECONOMICS MINISTER ANDREI NECHAYEV IN JANUARY TOLD ITAR TASS NEWS AGENCY THAT LEGISLATION IS BEING WORKED ON TO ASSURE GREATER MUTUAL PROTECTION OF INVESTMENTS AND AVOIDANCE OF DOUBLE TAXATION TO EASE THE ROAD FOR INVESTORS RUSSIA HAS CREATED AN AGENCY FOR INTERNATIONAL COOPERATION AND DEVELOPMENT THE GOVERNMENT SAYS THE AGENCY WILL COORDINATE INVESTMENT POLICY AND PROVIDE ONESTOP SHOPPING FOR POTENTIAL INVESTORS IT IS ALSO PLANNING TO OFFER RISK INSURANCE AGAINST POLITICAL UPHEAVAL OR NATIONALIZATION BORIS FYODOROV THE NEW FIRST DEPUTY PRIME MINISTER FOR FINANCE WHO WILL BE COORDINATING ECONOMIC POLICY SAYS HE WILL TRY TO CREATE A LEVEL PLAYING FIELD HE HAS TALKED TO HUNDREDS OF POTENTIAL INVESTORS DURING THE PAST TWO YEARS WHILE IN LONDON FOR THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT IN LONDON AND THEN IN WASHINGTON FOR THE WORLD BANK THE BIGGEST COMPLAINTS HE HEARD THE GOVERNMENT CHANGES ITS REGULATIONS TOO OFTEN AND TRIES TO GOUGE FOREIGN INVESTORS WHEREVER POSSIBLE THEY WANT STABILITY AND A CLARITY OF THE SITUATION MR FYODOROV SAID IN AN INTERVIEW AN INVESTOR DOESN'T CARE IF IT'S 15 STAGES HE JUST NEEDS TO KNOW THAT IT'S NOT 15 TODAY AND 20 TOMORROW AND 50 NEXT WEEK 9303010097 930301 TECHNOLOGY & HEALTH J&J UNIT TO TEST NEW AIDS DRUG IN MIX WITH OTHERS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS AT JOHNSON & JOHNSON'S BELGIAN DRUG RESEARCH OPERATION REPORTED THE DISCOVERY OF A NEW ANTIVIRAL AIDS DRUG THAT THE COMPANY HAS BEGUN TESTING IN HUMANS SCIENTISTS SAID THE DRUG CALLED ALPHAAPA BLOCKS THE ABILITY FOR THE HUMAN IMMUNODEFICIENCY VIRUS OR HIV TO REPLICATE IN TEST TUBE STUDIES IN INITIAL TESTS IN HEALTHY HUMANS THE DRUG APPEARED SAFE BUT THE DRUG'S DEVELOPERS SAID IN AN INTERVIEW LAST WEEK THAT THE DRUG DOESN'T SEEM TO BE USEFUL AGAINST AIDS ON ITS OWN AND WILL BE TESTED LATER THIS YEAR ONLY IN COMBINATION WITH OTHER ANTIVIRAL AIDS DRUGS ALREADY AVAILABLE OR BEING TESTED ALTHOUGH THE DRUG IS CHEMICALLY DIFFERENT THAN ANYTHING ELSE DEVELOPED AGAINST HIV WHICH CAUSES ACQUIRED IMMUNE DEFICIENCY SYNDROME SCIENTISTS WHO ARE DEVELOPING ALPHAAPA AT JANSSEN PHARMACEUTICA IN BEERSE BELGIUM SAID THE DRUG ACTS IN A MANNER SIMILAR TO A CLASS OF EXPERIMENTAL MEDICINES DEVELOPED IN THE PAST TWO YEARS BY MERCK & CO AND BOEHRINGER INGELHEIM CORP LAST YEAR MERCK AND BOEHRINGER INGELHEIM A RIDGEFIELD CONN UNIT OF BOEHRINGER INGELHEIM INTERNATIONAL GMBH SAID PRELIMINARY HUMAN TESTS WITH THEIR EXPERIMENTAL DRUGS CAUSED THE VIRUS TO DEVELOP RAPID RESISTANCE TO THE DRUGS THE COMPANIES AT FIRST DROPPED RESEARCH INTO THE MEDICINES BUT THEN BEGAN TESTING THEM IN COMBINATION WITH AZT AN APPROVED DRUG AGAINST THE VIRUS DEVELOPED BY BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC JANSSEN'S RESEARCHERS IN THEIR REPORT PUBLISHED WITH COLLABORATORS AT REGA INSTITUTE FOR MEDICINE IN TODAY'S ISSUE OF THE JOURNAL PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCE SAID TEST TUBE STUDIES SUGGEST THAT THE VIRUS WILL ALSO DEVELOP QUICK RESISTANCE TO ALPHAAPA IF IT IS USED ALONE THE SCIENTISTS HAD RELEASED AN INITIAL DESCRIPTION OF THE DRUG DISCOVERY LAST YEAR AT THE INTERNATIONAL AIDS CONFERENCE IN AMSTERDAM ALPHAAPA AND THE DRUGS DEVELOPED BY MERCK AND BOEHRINGER INGELHEIM WORK BY BLOCKING THE ACTION OF REVERSE TRANSCRIPTASE AN ENZYME CRUCIAL TO THE LIFE CYCLE OF THE AIDS VIRUS THREE OTHER ANTIVIRAL DRUGS ALREADY APPROVED FOR USE AGAINST AIDS AZT AND ITS TWO RELATED COMPOUNDS DDI AND DDC ALSO BLOCK REVERSE TRANSCRIPTASE BUT THEY DO SO IN A WAY THAT DIFFERS FROM ALPHAAPA AND THE MERCK AND BOEHRINGER INGELHEIM DRUGS DDI IS MARKETED BY BRISTOLMYERS SQUIBB CO AND DDC BY HOFFMANNLA ROCHE INC SEVERAL WEEKS AGO RESEARCHERS IN BOSTON CAUSED A STIR WHEN THEY REPORTED THAT IN TEST TUBE STUDIES USE OF THREE DIFFERENT ANTIVIRAL DRUGS AT ONCE AGAINST HIV APPEARED TO OVERCOME THE DRUGRESISTANCE PROBLEM THAT ARISES WHEN ONLY ONE DRUG IS USED THE US GOVERNMENT IS EXPECTED TO BEGIN HUMAN TESTING OF THE THREEDRUG THERAPY SOON USING A COMBINATION OF AZT AND ONE OF ITS RELATED COMPOUNDS AND THE DRUG DEVELOPED BY BOEHRINGER INGELHEIM CALLED NEVERAPINE 9303010096 930301 ENTERPRISE TROUBLED B&BS DO SOME R&D TO WOO GUESTS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL IF YOUR FAVORITE RUSTIC B&B IS OFFERING FAXES AND FRILLS IT'S JUST A SIGN OF THE TIMES THE SLOW ECONOMY COUPLED WITH A GLUT OF ROOMS IN THE LODGING INDUSTRY HAS PRESSED BEDANDBREAKFAST OWNERS TO COME UP WITH ALL SORTS OF INNOVATIVE ENTICEMENTS FOR TRAVELERS NOWADAYS THOSE RETREATS IN VERMONT MAY COME WITH JACUZZIS IN THE BATHROOMS AND FOR TRAVELERS WHO WANT TO STAY IN TOUCH WHILE THEY GET AWAY FROM IT ALL SOME B&BS EVEN OFFER FAX MACHINES RAY AND ANNE SMITH OWNERS OF THE HISTORIC BAILIWICK INN IN FAIRFAX VA EXPERIMENTED IN TWO WAYS LAST YEAR THEY JOINED OTHER INNS TO PROMOTE BUSTOUR PACKAGES WITH STOPS AT CIVIL WAR LANDMARKS AND TWODAY STAYS AT EACH ESTABLISHMENT AND THEY EXPANDED THEIR MEAL SERVICE TO INCLUDE DINNERS THE TOURS BOMBED BECAUSE THEY WERE PROMOTED TOO LATE IN THE SEASON MR SMITH SAYS BUT THE DINNER BUSINESS TOOK OFF ENOUGH FOR BAILIWICK TO BEGIN TO BREAK EVEN AFTER THREE YEARS IN OPERATION HE ADDS AND NOW HE HAS SHIFTED GEARS AGAIN FOCUSING MORE ON THE LOCAL COMMUNITY TO ATTRACT DINERS AND SUCH SPECIAL EVENTS AS WEDDINGS OTHER BEDANDBREAKFAST OPERATORS ARE ALSO SCRAMBLING TO LURE NEW CUSTOMERS SOME ARE REFURBISHING ROOMS TO APPEAL TO HONEYMOONERS OTHERS ARE OFFERING SPORTSCLUB PRIVILEGES TO SNARE BUSINESS TRAVELERS STILL OTHERS KEEP BARNYARD ANIMALS ON THEIR GROUNDS TO ATTRACT YOUNG FAMILIES THE DRIVING FORCE BEHIND ALL THIS ACTIVITY IS DESPERATION IN THE PAST DECADE THE NUMBER OF B&BS HAS SOARED TO 20000 FROM FEWER THAN 1000 THE AMERICAN BED AND BREAKFAST ASSOCIATION ESTIMATES MANY OF THE ESTABLISHMENTS WERE OPENED BY REFUGEES FROM THE CORPORATE WORLD OR BY EMPTYNESTERS WITH SPARE ROOMS AND A NEED FOR EXTRA INCOME THE GROWTH IN THE INDUSTRY WAS FUELED BY AMERICANS' APPETITE FOR RUSTIC OFTEN EUROPEANSTYLE RETREATS BUT THE SUPPLY OUTSTRIPPED DEMAND THOUGH THE GROWTH CONTINUES IN THE MIDWEST AND SOUTH MARKETS IN THE NORTHEAST AND WEST ARE SATURATED NOW AND MANY INNS ARE FOR SALE SAYS SARAH SONKE DIRECTOR OF THE ASSOCIATION COMPOUNDING THEIR PROBLEMS B&B OPERATORS FACE STIFFENED COMPETITION FROM HOTELS THAT HAVE STRUGGLED WITH LOW OCCUPANCY RATES IN THE RECENT RECESSION HOTELS HAVE SLASHED THEIR RATES OFFERED TRAVEL PACKAGES AND IMPROVED SERVICE MANY HAVE ADDED EXTRA TOUCHES TOO SUCH AS COMPLIMENTARY BREAKFASTS CONCIERGE SERVICE EXPRESS CHECKIN NOSMOKING ROOMS PERSONAL COMPUTERS EVEN DAY CARE FACING SUCH PRESSURES IN A SLUGGISH TRAVEL MARKET MANY B&B OWNERS SAW THEIR ANNUAL REVENUES FLATTEN OR FALL OFF LAST YEAR SAY INDUSTRY EXPERTS AFTER SEVEN YEARS GWEN AND ROBERT VAUGHAN HAVE YET TO BREAK EVEN ON THE TWIN GATES BED & BREAKFAST IN LUTHERVILLE MD THE SEVENROOM INN'S OCCUPANCY RATE WAS 30 LAST YEAR 20 PERCENTAGE POINTS SHORT OF ITS ESTIMATED BREAKEVEN LEVEL IN HOPES OF ATTRACTING TRAVELERS MS VAUGHAN IS MARKETING ONENIGHT GETAWAYS AS A LOWBUDGET WAY TO ESCAPE IT ALL PEOPLE DON'T HAVE A LOT OF EXTRA MONEY NOW TO PAY FOR LONGER STAYS SHE SAYS INCREASINGLY OPERATORS ARE LOOKING FOR WAYS TO GARNER REPEAT BUSINESS GEORGE HOY COOWNER OF THE INN AT BRANDYWINE FALLS IN CUYAHOGA VALLEY NATIONAL PARK OHIO KEEPS IN TOUCH WITH THOUSANDS OF PAST GUESTS THROUGH HIS NEWSLETTER INN ABSENTIA INNCONSEQUENTIAL INNFORMATION INNCONSISTENTLY GOTTEN INN THE MAIL IT OFFERS LIGHT TIDBITS ABOUT THE HOY FAMILY THEIR GOATS AND CHICKENS AND OTHER ITEMS BUT MANY OWNERS HAVE TROUBLE FINDING THEIR MARKET SUSAN MOEHL AND PENNI JOHNSON QUIT CORPORATE CAREERS TO START SOUTHMORELAND ON THE PLAZA IN KANSAS CITY MO AS A HAVEN FOR TRAVELING BUSINESSWOMEN THEY INVESTED ABOUT 1 MILLION TO BUY RENOVATE AND EXPAND A LOCAL GUEST HOUSE AND BUILD A CARRIAGE HOUSE ON THE LOT FOR THEMSELVES THEY OFFER 12 GUEST ROOMS EACH WITH A PRIVATE DECK OR FIREPLACE AN OVERTHEPHONE LANGUAGETRANSLATION SERVICE AND BREAKFASTS AT ANY TIME AND MS MOEHL TELLS PROSPECTIVE GUESTS YOU'RE NOT GOING TO FIND A RAG DOLL IN BED WITH YOU BUT BUSINESSWOMEN AREN'T FLOCKING TO THE PLACE AS SHE HAD EXPECTED HER 80TO115 ROOM RATES DRAW MOSTLY BUSINESSMEN SHE SAYS SURMISING THAT MOST WOMEN'S PERDIEM TRAVEL ALLOWANCES ARE LESS THAN MEN'S WHAT IS MORE SHE SAYS SHE HASN'T BEEN ABLE TO GET THE WORD OUT TO WOMEN I THOUGHT THERE'D BE THOUSANDS OF WOMEN WAITING FOR SOUTHMORELAND AND I STILL THINK THERE ARE BUT I DON'T KNOW HOW TO REACH THEM SHE SAYS SOMETIMES INNKEEPERS OFFER TOO MANY SERVICES ESPECIALLY FOR GUESTS WHO JUST WANT TO RELAX FOR SEVERAL YEARS JOAN MORRIS OWNER OF THE NUTHATCH BED & BREAKFAST IN INDIANAPOLIS TRIED TO ATTRACT GUESTS WITH A TWODAY COURSE ON CHINESE COOKING THE FIRST NIGHT SHE WOULD COOK A CHINESE MEAL THE NEXT MORNING SHE WOULD TAKE GUESTS SHOPPING FOR SUPPER INGREDIENTS AND THAT NIGHT SHE WOULD ASSIST THEM IN MAKING THEIR OWN DINNER MS MORRIS EXHAUSTED HERSELF IN PLANNING THE MENUS ONLY TO FIND THAT FEW PEOPLE SIGNED UP GUESTS CONSIDERED THE PACKAGE TOO EXPENSIVE 50 FOR THE CLASS ON TOP OF THE ROOM RATES OF 60 TO 75 A NIGHT SHE SAYS AND THEY DIDN'T LIKE WORKING SO HARD ON THEIR VACATIONS SHE SAYS SHE MAY REVIVE THE PROGRAM NEXT YEAR SHE SAYS BUT OFFER ONLY ONENIGHT PACKAGES AS THE BEDANDBREAKFAST INDUSTRY MATURES IT IS GETTING MORE PROTECTIVE OF ITS TURF MS SONKE THE INDUSTRY ASSOCIATION'S DIRECTOR SAYS SHE IS TAKING SERIOUSLY CONSUMER COMPLAINTS ABOUT SUBSTANDARD OPERATORS AND IS STEPPING UP INSPECTIONS OF B&BS ACROSS THE COUNTRY THERE'S NO CONSISTENCY IN QUALITY ACROSS THE INDUSTRY SHE SAYS IT'S RUSSIAN ROULETTE A SKIRMISH LAST FALL IN JACKSON WYO ILLUSTRATES HOW DETERMINED THE INDUSTRY IS TO KEEP ITS REPUTATION FOR SPECIALIZED SERVICE INTACT A GROUP OF OWNERS IN THE JACKSON AREA CONFRONTED ENTREPRENEUR CASE MORTON FOR ADVERTISING HIS SUNDANCE INN A 28ROOM MOTEL AS A B&B DENNY BECKER OWNER OF THE NEARBY TETON TREEHOUSE SAYS DISAPPOINTED SUNDANCE GUESTS WOULD CALL HIM SEEKING A CLASSIC BED AND BREAKFAST RATHER THAN A GLORIFIED MOTEL MR BECKER INSISTS THAT A TRUE BED AND BREAKFAST HAS A MAXIMUM OF 12 ROOMS ALL WITH ENTRANCES TO THE MAIN FACILITY MR MORTON SAYS HIS BUSINESS EARNED THE TITLE OF BED AND BREAKFAST BECAUSE OF THE PERSONALIZED SERVICES IT OFFERED INCLUDING A CONTINENTAL BREAKFAST A SOCIAL HOUR AND FLUFFY TOWELS HE SAYS THE ISSUE WITH HIS COMPETITORS AROSE PARTLY BECAUSE HIS RATE OF ABOUT 60 A NIGHT FOR A DOUBLE ROOM IS AT LEAST 20 CHEAPER THAN THE AVERAGE LOCAL BED AND BREAKFAST HE SAYS HE WILL CONTINUE TO OFFER THE SAME SERVICES BUT HE ADDS THAT HE HAS AGREED TO DROP THE BEDANDBREAKFAST MONIKER IN EXCHANGE FOR PROMISED REFERRALS FROM HIS PEERS 9303010095 930301 BUSINESS BRIEF THERMO INSTRUMENT SYSTEMS INC SPECTRAPHYSICS AB UNIT IS ACQUIRED FOR 69 MILLION THERMO INSTRUMENT SYSTEMS INC WALTHAM MASS SAID IT COMPLETED ITS ACQUISITION OF SPECTRAPHYSICS ANALYTICAL INC FREMONT CALIF FOR ABOUT 69 MILLION SPECTRAPHYSICS A UNIT OF SPECTRAPHYSICS AB OF STOCKHOLM MAKES LIQUID CHROMATOGRAPHY AND CAPILLARY ELECTROPHORESIS INSTRUMENTS THERMO SAID THERMO SAID IT WILL COMBINE THE OPERATIONS OF SPECTRAPHYSICS ANALYTICAL WITH ITS LDC ANALYTICAL INC UNIT WHICH MAKES PRODUCTS FOR LIQUID CHROMATOGRAPHY AND MERCURY ANALYSIS THERMO INSTRUMENT MAKES ANALYTICAL INSTRUMENTS THE COMPANY IS MAJORITY OWNED BY THERMO ELECTRON CORP 9303010094 930301 INTERNATIONAL BRIEF DAIMLERBENZ AG AEROSPACE UNIT IS PLANNING TO IDLE WORKERS TEMPORARILY DEUTSCHE AEROSPACE AIRBUS GMBH THE GERMAN PARTNER OF EUROPEAN AIRCRAFT CONSORTIUM AIRBUS INDUSTRIE WILL TEMPORARILY IDLE WORKERS ON 21 DAYS OF SHORT SHIFTS IN 1993 THE HAMBURGBASED COMPANY BLAMED THE NEED FOR SHORT SHIFTS WHICH WILL AFFECT BETWEEN 60 AND 70 OF DEUTSCHE AIRBUS'S 24000 EMPLOYEES AND LIMIT PRODUCTION TO A DROP IN AIRCRAFT ORDERS DEUTSCHE AIRBUS IS A PART OF DEUTSCHE AEROSPACE AG OR DASA WHICH IN TURN IS OWNED BY THE GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG EARLIER IN THE MONTH DASA WARNED THAT IT EXPECTS OPERATING LOSSES IN BOTH 1993 AND 1994 WHICH IT FORECASTS WILL BE DIFFICULT YEARS DASA ALSO WARNED THAT IT WILL HAVE TO INSTITUTE A SERIES OF COSTSAVINGS MEASURES COUPLED WITH LARGESCALE LAYOFFS IF IT'S TO RETURN TO PROFITABILITY IN 1995 9303010093 930301 POLITICS & POLICY WHITE HOUSE MOVES NASA JOBS TO TEXAS IN SWIPE AT SHELBY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION ANGERED BY WHAT IT SAW AS THE DISLOYALTY OF ALABAMA SEN RICHARD SHELBY ABRUPTLY ANNOUNCED IT WOULD MOVE THE MANAGEMENT TEAM FOR A SPACE SHUTTLE CONTRACT OUT OF THE DEMOCRATIC SENATOR'S HOME STATE THE DECISION AFFECTS JUST 90 ENGINEERING AND MANAGEMENT EMPLOYEES BUT SENDS A LARGER POLITICAL SIGNAL THAT THE PRESIDENT IS WILLING TO USE HIS POWER TO INVOKE PARTY DISCIPLINE ENTERING THE DEBATE OVER HIS AMBITIOUS ECONOMIC PROGRAM WITH THE MARSHALL SPACE FLIGHT CENTER IN HUNTSVILLE ALA MR SHELBY WAS AMONG THOSE WHO SUCCESSFULLY LOBBIED THE ADMINISTRATION NOT TO KILL THE COSTLY SPACE STATION PROJECT YET SOON AFTER THE PRESIDENT'S BUDGET PACKAGE WAS ANNOUNCED THE ALABAMA CONSERVATIVE APPEARED ON A NETWORK EVENING NEWS BROADCAST CRITICIZING THE ECONOMIC PROGRAM FOR FAILING TO CUT MORE FROM FEDERAL SPENDING THE TRANSFER OF PERSONNEL ANNOUNCED FRIDAY CAME IN RETALIATION AND ADMINISTRATION OFFICIALS SAID IT OFFERED THE PRESIDENT THE OPPORTUNITY BOTH TO SEND A GETTOUGH MESSAGE TO RECALCITRANT DEMOCRATS AND HELP SEN BOB KRUEGER FIGHTING TO HOLD ONTO HIS SEAT IN THE TEXAS SPECIAL ELECTION IN MAY HUNTSVILLE'S LOSS WILL BE HOUSTON'S GAIN UNDER THE PLAN TO MOVE THE MANAGEMENT TEAM TO THE JOHNSON SPACE CENTER WHICH HAS SUFFERED WEEKS OF UNREST ABOUT THE FUTURE OF THE SPACE STATION THE CONTRACT AT ISSUE IS CURRENTLY FUNDED AT 378 MILLION A YEAR FOR CONSTRUCTION OF EXTERNAL FUEL TANKS FOR THE SHUTTLE THE OVERWHELMING NUMBER OF JOBS INVOLVED IN THE PROJECT REMAIN IN LOUISIANA WHERE THE 154FOOTLONG TANKS ARE BUILT BY MARTIN MARIETTA CORP BUT FOR THE WHITE HOUSE THE MODEST IMPACT ONLY MADE THE OPPORTUNITY MORE ATTRACTIVE BECAUSE THE ADMINISTRATION DIDN'T WANT TO UNDULY OFFEND MR SHELBY'S SENIOR COLLEAGUE SEN HOWELL HEFLIN OFFICIALS AT MARTIN MARIETTA AND MARSHALL WHOSE CENTRAL MISSION HAS LONG BEEN THE PROPULSION ASPECT OF THE SPACE PROGRAM EXPRESSED SURPRISE AND BAFFLEMENT AT THE MANEUVERING ABOUT THEM A SPOKESMAN FOR WHITE HOUSE BUDGET DIRECTOR LEON PANETTA INSISTED THE DECISION WAS ALL IN THE NAME OF MANAGEMENT SAVINGS MR SHELBY'S OFFICE DENIED THE DECISION WAS AIMED AT HIM BUT INDICATED HE WANTED THE ADMINISTRATION TO PROVE ANY SAVINGS ALTHOUGH THIS DECISION HAS BEEN ANNOUNCED FROM WHAT I UNDERSTAND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WILL CONDUCT A STUDY TO ENSURE THAT THE PROPOSAL WILL INDEED CUT COSTS BEFORE ANY MOVE IS MADE MOST SURPRISED OF ALL MAY HAVE BEEN MR KRUEGER THE APPOINTED SENATOR WHO HAS A TOUGH FIGHT AHEAD TO KEEP THE SEAT PREVIOUSLY HELD BY TREASURY SECRETARY LLOYD BENTSEN HADN'T SOUGHT THE TRANSFER BUT RUSHED OUT A STATEMENT IN SUPPORT AMERICANS WANT THEIR MONEY SPENT WISELY TEXANS WANT THEIR MONEY SPENT WISELY SAID MR KRUEGER AND I WILL DO ALL I CAN TO ELIMINATE WASTE AND FAT IN THE FEDERAL GOVERNMENT 9303010092 930301 INTERNATIONAL TOBACCO TYCOON WINS RULE OVER PHILIPPINE AIRLINES MANILA THE CONVOLUTED TWOMONTH BATTLE FOR CONTROL OF PHILIPPINE AIRLINES IS OVER LUCIO TAN A RECLUSIVE TOBACCO TYCOON WHO EMERGED IN EARLY JANUARY AS THE TRUE OWNER OF 40 OF THE AIRLINE'S HOLDING COMPANY MANAGED TO BEST THE AIRLINE'S CHAIRMAN ANTONIO COJUANGCO JR LAST WEEK BY FORMING AN ALLIANCE WITH ANOTHER SHAREHOLDER WITH AN ADDED 98 OF PR HOLDINGS' VOTES SWUNG IN HIS DIRECTION MR TAN WAS ABLE TO COMMAND A NARROW MAJORITY OF THE HOLDING COMPANY ACCORDING TO TWO PARTICIPANTS AT A PR HOLDINGS BOARD MEETING SATURDAY MR TAN NAMED BANKER GABRIEL SINGSON TO SUCCEED MR COJUANGCO AS CHAIRMAN OF PR HOLDINGS MR SINGSON PRESIDENT OF PHILIPPINE NATIONAL BANK A GOVERNMENT FINANCIAL INSTITUTION THAT HAS A 75 STAKE OF PR HOLDINGS LAST MONTH WAS DEPUTIZED BY PRESIDENT FIDEL RAMOS TO SORT OUT THE AIRLINE'S DISPUTE AT THE SAME MEETING MR COJUANGCO ALSO SURRENDERED THE PROXIES OF A FURTHER 56 OF THE HOLDING COMPANY TO MR TAN GIVING THE WINNER CONTROL OF 56 OF THE VOTES SAID ONE PERSON WHO WAS PRESENT NEITHER MR TAN NOR MR COJUANGCO COULD BE REACHED FOR COMMENT 9303010091 930301 MARKETING & MEDIA TIME WARNER VENTURE WITH QUINCY JONES STARTS VIBE MAGAZINE NEW YORK HOPING STREETSMART STORIES ABOUT THE MUSIC AND CULTURE OF HIPHOP WILL ATTRACT HARDTOREACH TWENTYSOMETHINGS TIME WARNER INC AND QUINCY JONES ANNOUNCED THE LAUNCH OF VIBE MAGAZINE VIBE WILL BE THE ROLLING STONE OF THE '90S SAID MR JONES THE MAGAZINE'S FOUNDER TRYING TO CAPITALIZE ON THE GROWING POPULARITY OF HIPHOP VIBE WILL COVER RAP RHYTHM & BLUES REGGAE AND DANCE MUSIC AS WELL AS POLITICS AND FASHION THE MAGAZINE A JOINT VENTURE BETWEEN QUINCY JONES ENTERTAINMENT CO AND TIME INC VENTURES A TIME WARNER UNIT IS SCHEDULED TO PUBLISH MONTHLY FROM SEPTEMBER 1993 TO THE END OF THE YEAR AND 10 TIMES IN 1994 THE JOINT VENTURE GUARANTEED ADVERTISERS A CIRCULATION OF 100000 READERS NEWSSTAND PRICE WILL BE 250 A YEARLY SUBSCRIPTION WILL COST 18 A YEAR JONATHAN VAN METER A FORMER SENIOR EDITOR AT VOGUE AND ONCE AN EDITOR AT THE NOWDEFUNCT SEVEN DAYS IS VIBE'S EDITOR IN CHIEF KEITH T CLINKSCALES CURRENTLY PUBLISHER AND EDITOR IN CHIEF OF URBAN PROFILE AN ISSUESORIENTED MAGAZINE FOR AFRICAN AMERICANS WILL BE CHIEF OPERATING OFFICER AND JOHN ROLLINS VICE PRESIDENT OF ADVERTISING FOR SPIN MAGAZINE WILL BE PUBLISHER A PREVIEW ISSUE OF VIBE CIRCULATED IN RECORD STORES AND APPEARED ON NEWSSTANDS IN SEPTEMBER 9303010090 930301 INTERNATIONAL CITICORP IS EXPECTED TO FUND INDIAN UNIT IN WAKE OF SCANDAL SPECIAL TO THE WALL STREET JOURNAL NEW DELHI CITICORP IS EXPECTED TO BRING INTO INDIA SUBSTANTIAL FUNDS THROUGH A SUBSIDIARY INVESTMENT COMPANY TO MEET POSSIBLE LIQUIDITY PROBLEMS AT ITS CITIBANK UNIT IN THE WAKE OF THE 126 BILLION INDIAN SECURITIES SCANDAL AN ARTICLE IN FRIDAY'S TIMES OF INDIA BASED ON SOURCES AT THE RESERVE BANK OF INDIA SAID THE SUM MIGHT REACH 150 MILLION OFFICIALS AT CITIBANK CITICORP'S PRINCIPAL BANKING UNIT WOULDN'T CONFIRM OR DENY THE REPORT BUT PEOPLE CLOSE TO CITIBANK SAID THAT THE ACTION WAS BEING TAKEN BECAUSE LIQUIDITY WAS TIGHT IN THE MARKET FOR CERTAIN BONDS WHICH HAD BEEN ADVERSELY AFFECTED BY SECURITIES FRAUD CITIBANK SOURCES EMPHASIZED THAT THESE FUNDS HAVE NOTHING TO DO WITH THE BANK'S OVERALL LIQUIDITY POSITION WHICH IS ENTIRELY COMFORTABLE THE BANK'S POSSIBLE LIABILITIES ARISE OUT OF INVESTMENT PORTFOLIO MANAGEMENT SERVICES THAT ARE BEING WOUND DOWN FOLLOWING THE SECURITIESFRAUD SCANDAL BECAUSE OF A SEVERE LIQUIDITY PROBLEM IN THE MARKET FOR CERTAIN SECURITIES CITIBANK ISN'T CONFIDENT IT CAN SELL ALL THE SECURITIES IT HOLDS AND MEET ITS LIABILITIES TO ITS CORPORATE INVESTORS WHICH IS WHY IT NEEDS THE EXTRA MONEY 9303010089 930301 WHO'S NEWS IBM PONDERS POSSIBLE ROLE FOR MEYERSON BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AS INTERNATIONAL BUSINESS MACHINES CORP DIRECTORS SEARCH FOR A NEW CHIEF TO RESCUE THE COMPUTER GIANT THEY ARE TURNING REPEATEDLY TO AN EXUBERANTLY ECCENTRIC TEXAS HACKER AND OUTDOORSMAN WHO LIVES IN A CONVERTED ELECTRICAL SUBSTATION ADORNED WITH EXPOSED PLUMBING A MASSIVE CRANE HANGING FROM THE CEILING AND AN ACOUSTICPANELED CONCERT ROOM HE IS MORTON H MEYERSON A WEALTHY DALLAS INVESTOR COMPUTER EXECUTIVE AND LONGTIME SIDEKICK OF ROSS PEROT MR PEROT FREQUENTLY CALLS HIM THE MAN RESPONSIBLE FOR THE PHENOMENAL SUCCESS OF THE COMPANY THAT BUILT BOTH THEIR FORTUNES ELECTRONIC DATA SYSTEMS CORP ON THE SURFACE MR MEYERSON 54 YEARS OLD IS THE LAST MAN ANYONE WOULD EXPECT TO FIND RUNNING A WHITESHIRTED AUTOCRACY LIKE EDS OR IBM HE LIKES TO PAD ABOUT THE POWERHOUSE AS HE CALLS HIS EXTRAORDINARY DALLAS HOME IN BIRKENSTOCK SANDALS PLAYING MUSIC AND NIBBLING VEGETARIAN CUISINE IN HIS SPARE TIME HE HANGS OUT WITH A RETINUE OF YOUNG COMPUTER WHIZZES IN SILICON VALLEY HONG KONG AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WHERE HE SOMETIMES DROPS BY FOR LATENIGHT JAM SESSIONS ON ELECTRONIC SYNTHESIZERS OVER THE PAST MONTH MR MEYERSON HAS HAD NUMEROUS CONVERSATIONS WITH IBM DIRECTORS AND MET WITH THEM AT LEAST TWICE INCLUDING A SESSION TWO WEEKS AGO IN NEW YORK THE DIRECTORS APPARENTLY ARE PAYING ATTENTION TO A RADICAL VISION MR MEYERSON IS OUTLINING FOR IBM'S FUTURE AND PONDERING WHETHER THEY SHOULD ASK MR MEYERSON HIMSELF TO MAKE IT A REALITY A FRIEND SAYS MR MEYERSON ENVISIONS BREAKING UP IBM FAR MORE RADICALLY THAN DEPARTING CHIEF EXECUTIVE JOHN AKERS EVER PROPOSED HE SEES A MASSIVE RESTRUCTURING WITH SUPERSTAR MANAGERS TAKING OVER EACH IBM UNIT SUCH AS DELL COMPUTER CORP'S MICHAEL DELL IN PERSONAL COMPUTERS OR SUN MICROSYSTEMS INC'S SCOTT MCNEALY IN WORKSTATIONS THE FRIEND SAYS IF MR DELL AND MR MCNEALY WON'T COME TO IBM THEN SELL THE IBM BUSINESSES TO DELL AND SUN THE FRIEND CONTINUES BUT MR MEYERSON ALSO REPORTEDLY TOLD THE IBM BOARD HE MAY NOT BE THE BEST PERSON TO CARRY OUT THIS AMBITIOUS PLAN HE'S SUGGESTED OTHERS WHO ARE BETTER THE FRIEND SAYS WITHOUT ELABORATING AS THE SEARCH MOVES INTO ITS SECOND MONTH OFFICIALS SAY IBM DIRECTORS ARE BRAINSTORMING WITH MR MEYERSON AND OTHERS ABOUT MOVES FAR MORE SWEEPING THAN SIMPLY TAPPING A NEW CHIEF EXECUTIVE ONE FARFETCHED PLAN THAT HAS COME UP LURING GENERAL ELECTRIC CO'S CHAIRMAN JOHN WELCH CONSIDERED UNLIKELY TO MOVE TO IBM BY SELLING PART OF IBM TO GE ABB ASEA BROWN BOVERI CO IS A ZURICHBASED ENGINEERING CONGLOMERATE WHOSE ULTRADECENTRALIZED STRUCTURE HAS BEEN STUDIED BY IBM PHILIPS ELECTRONICS NV IS A DUTCH CONSUMERELECTRONICS GIANT THERE ARE OTHER SIGNS THE IBM BOARD IS CONSIDERING BROAD STROKES TO REMAKE THE CRIPPLED COMPANY ONE INVESTOR WHO HAS MET WITH DIRECTORS SAYS THEY ARE SERIOUSLY CONSIDERING SEPARATING THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE SEVERAL BIG COMPANIES HAVE LATELY ADOPTED THIS MEASURE TO DIFFUSE A CORPORATE CHIEFTAIN'S POWER THE BOARD ALSO APPEARS TO BE SEARCHING FOR FRESH BLOOD AT THE TOP OF IBM BEYOND THE CHIEF EXECUTIVE JOB THE RUSSELL REYNOLDS ASSOCIATES SEARCH FIRM HAS BEEN CONTACTING EXECUTIVES OUTSIDE OF IBM ABOUT THE IBM CHIEF FINANCIAL OFFICER JOB ACCORDING TO ONE NEW YORK FINANCIER IBM'S LONGTIME CHIEF FINANCIAL OFFICER FRANK METZ RETIRED EARLY AS PART OF THE JANUARY BLOODLETTING THAT ALSO CLEARED ASIDE MR AKERS AND PRESIDENT JACK KUEHLER RUSSELL REYNOLDS THE SEARCH FIRM'S CHAIRMAN WOULDN'T COMMENT IBM OFFICIALS AND DIRECTORS HAVE MAINTAINED TOTAL SECRECY ABOUT THE CHIEF EXECUTIVE OFFICER SEARCH AND WOULDN'T RESPOND TO ANY OF THESE REPORTS AS FOR MR MEYERSON IT ISN'T CLEAR WHETHER THE TEXAN IS PLAYING HARD TO GET OR GENUINELY BELIEVES HE IS THE WRONG MAN FOR THE JOB REACHED IN TAIWAN LAST WEEK HE DECLINED TO COMMENT HE REPORTEDLY TALKED TO THE IBM BOARD ABOUT A POTENTIALLY SERIOUS LIMITATION ALTHOUGH HE HAS SUPERB EXPERIENCE IN PART OF IBM'S BUSINESS SOFTWARE AND SERVICES HE HAS LITTLE IN HARDWARE AND MANUFACTURING NEVERTHELESS MR MEYERSON APPEARS TO BE DRAWING SOME SUPPORT AT IBM I BELIEVE HE SLOWLY WON OVER A NUMBER OF PEOPLE TO BELIEVE HE WAS THE RIGHT GUY SAYS MR MEYERSON'S FRIEND HE IS SO OBVIOUS AS SOMEONE WHO REALLY UNDERSTANDS THE BUSINESS SAYS ONE PERSON CLOSE TO THE IBM BOARD THE TALKS WITH MR MEYERSON ARE JUST ONE SMALL PART OF THE IBM SEARCH AND MAY ULTIMATELY HAVE NO IMPACT AT ALL THE IBM BOARD IS SOLICITING ADVICE FROM MANY OTHER PEOPLE AND LOOKING AT SEVERAL OTHER STRONG CANDIDATES FOR THE CHIEF EXECUTIVE JOB THEY ARE SAID TO INCLUDE LAWRENCE BOSSIDY OF ALLIEDSIGNAL INC GEORGE FISHER OF MOTOROLA INC LOUIS GERSTNER OF RJR NABISCO INC AND JOHN SCULLEY OF APPLE COMPUTER INC MR MEYERSON JOINED EDS AS A YOUNG MAN DESPITE A VAST DIFFERENCE IN STYLE AND CULTURE HE BECAME MR PEROT'S PRESIDENT RUNNING EDS'S DAILY OPERATIONS WHILE HIS BOSS FOCUSED ON REFORMING TEXAS EDUCATION AND OTHER CRUSADES HE GOT A THOROUGH EDUCATION IN BLOATED CORPORATE BUREAUCRACIES WHEN GM BOUGHT EDS AND HE BECAME A TOP OFFICER OF THE AUTO GIANT AFTER TWO FRUSTRATING YEARS HE LEFT IN 1986 WHEN GM BOUGHT OUT MR PEROT AND HIS TOP EDS LIEUTENANTS MR MEYERSON WHO CLEARED NEARLY 30 MILLION FROM THE BUYOUT SPENT SEVERAL YEARS IN DALLAS PURSUING FARFLUNG INVESTMENTS HE ALSO SERVED A STINT AS A TOP CONSULTANT TO MICHAEL DELL THE AUSTIN TEXAS PERSONALCOMPUTER WUNDERKIND HE STAYED CLOSE TO MR PEROT WHO LED A DRIVE TO RAISE MONEY FOR A NEW DALLAS SYMPHONY HALL ON THE CONDITION THAT IT BE NAMED FOR MR MEYERSON DALLAS MUSIC LOVERS NOW SPEAK OF GOING TO A CONCERT AT THE MORT LAST YEAR HE BECAME CHAIRMAN OF MR PEROT'S LATEST COMPUTER SERVICES VENTURE PEROT SYSTEMS CORP AND WAS A TOP AIDE IN THE PEROT PRESIDENTIAL CAMPAIGNS MR MEYERSON ALSO MAINTAINS A NETWORK OF YOUNG OFFBEAT PROGRAMMERS WHO OFTEN JOIN HIM FOR MEALS AT THE POWERHOUSE OR HIKES IN THE HILLS OUTSIDE OF HIS SECOND HOME IN SANTA FE NM HENRY MASSALIN A 30YEAROLD SILICON VALLEY RESEARCHER WHOSE QUIRKY HOBBY IS GIVING PIGGYBACK RIDES RECALLS A SUMMER OUTING TO THE BOSTON SYMPHONY ORCHESTRA'S TANGLEWOOD FESTIVAL WITH MR MEYERSON AND SEVERAL MIT STUDENTS WE EXCHANGED A FRIENDLY PIGGYBACK RIDE MR MASSALIN REMEMBERS IF YOU DID NOT KNOW THE HISTORY BEHIND HIM YOU WOULD NOT GUESS WHAT HE CONTROLS AND WHAT HE HAS DONE 9303010088 930301 WHO'S NEWS INSTRON CORP INSTRON CORP CANTON MASS LINTON MOULDING FORMERLY VICE PRESIDENT FINANCE WAS NAMED TO THE NEW POST OF CHIEF FINANCIAL OFFICER OF THIS MAKER OF TESTING INSTRUMENTS 9303010087 930301 LETTERS TO THE EDITOR COME BACK TO SHETLAND AND EAT YOUR WORDS I HAPPENED TO BE IN WASHINGTON ON FEB 4 IN ORDER TO ATTEND A HEARING OF THE CONGRESSIONAL SUBCOMMITTEE ON THE BRAER OIL SPILL IF I HAD NOT BEEN IT IS UNLIKELY THAT I WOULD HAVE SEEN PAUL LEVY'S LEISURE & ARTS ARTICLE OF THAT DAY SCOTTISH GALES CLEAN UP THE MESS THEY MADE MR LEVY PRESENTS A GOOD PICTURE OF SHETLAND EXCEPT FOR THE SINGLE AND SINGULAR INSULT WHEN HE SAYS THE FOOD IN THE PUBS AND RESTAURANTS IS GHASTLY ON BEHALF OF THE SHETLAND ISLANDS COUNCIL WHICH IN TURN REPRESENTS THE SHETLAND COMMUNITY I TAKE GREAT EXCEPTION TO THIS GROSS INACCURACY AND SHOULD LIKE MR LEVY TO RENDER AN APOLOGY IN YOUR COLUMNS IF HE FEELS UNABLE TO DO THIS THEN I SUGGEST YOU SEND HIM BACK TO SHETLAND AND I WILL PERSONALLY ENSURE THAT HE SAMPLES WITH ME THE FOOD IN WHATEVER PUBS AND RESTAURANTS HE CARES TO CHOOSE I CAN GUARANTEE IN ADVANCE HE WILL FIND IT TO BE EXCEPTIONALLY GOOD AND NOT IN ANY WAY GHASTLY 9303010086 930301 TECHNOLOGY & HEALTH INFORMATION AGE COMPUTERS START TO LIFT US PRODUCTIVITY BY WILLIAM M BULKELEY COMPUTERS ARE NOW MAKING THE US WORK FORCE MORE PRODUCTIVE OF COURSE RIGHT WELL ECONOMISTS FOUND SCANT EVIDENCE OF IMPROVED PRODUCTIVITY FROM COMPUTERS IN THE PAST DECADE SO THIS IS REAL MANBITESDOG STUFF INCLUDE ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE BOARD AMONG THE BELIEVERS HE TOLD CONGRESS LAST MONTH THAT A NEW SYNERGY OF HARDWARE AND SOFTWARE APPLICATIONS MAY FINALLY BE SHOWING THROUGH IN A SIGNIFICANT INCREASE IN LABOR PRODUCTIVITY MAYBE IT'S SYNERGY OR MAYBE IT'S A NEW HARDHEADEDNESS AT BANKS INSURERS AND TRANSPORTATION COMPANIES THAT HAVE FIRED PEOPLE EITHER WAY MORE SERVICE SECTOR COMPANIES ARE USING COMPUTERS TO DO THE SAME AMOUNT OF WORK WITH FEWER PEOPLE THE DEFINITION OF PRODUCTIVITY FLEET FINANCIAL GROUP INC A PROVIDENCE RI BANK HOLDING COMPANY BUILT A CONSUMER SERVICE CENTER IN UTICA NY TO HANDLE ALL CUSTOMER INQUIRIES FROM ANY OF ITS SEVEN BANK SUBSIDIARIES IN SIX STATES OPERATING 24 HOURS A DAY IT GETS 15 MILLION CALLS A MONTH80 ENTIRELY HANDLED BY COMPUTER DESPITE THE LONGER SERVICE HOURS AND WIDER RANGE OF INQUIRIES HANDLED IT NOW HAS 40 FEWER CUSTOMER SERVICE PEOPLE THAN THE SEPARATE BANKS DID IF YOU USE TECHNOLOGY TO REENGINEER YOUR BUSINESS PRACTICES THERE ARE SIGNIFICANT GAINS SAYS MICHAEL ZUCCHINI EXECUTIVE VICE PRESIDENT FOUR YEARS AGO UNION PACIFIC CORP'S UNION PACIFIC RAILROAD UNIT CLOSED 10 REGIONAL DISPATCH CENTERS AND CONSOLIDATED CONTROL OF THE ENTIRE RAILROAD IN A 50 MILLION COMPUTERIZED CENTER IN OMAHA NEB THE ACTION REDUCED THE DISPATCH STAFF TO 800 FROM 1200 BUT THE REAL SAVINGS IS IN DAYTODAY OPERATIONS SAYS KIP HAWLEY VICE PRESIDENT TRANSPORTATION SERVICES WITH THE CENTRALIZED SYSTEM THE RAILROAD CAN REDUCE IDLE TIME FOR ITS 3000 15MILLION LOCOMOTIVES BY 1 SAVING 40 MILLION A YEAR IN THE LAST NINE YEARS THE LINE HAS CUT EMPLOYMENT 38 TO 27882 WHILE INCREASING TONS HAULED BY 43 A DOUBLING IN TONS HAULED PER WORKER THAT PARTLY REFLECTS COMPUTERIZATION DURING THE PAST DECADE OVERALL US PRODUCTIVITY GREW ONLY 09 ANNUALLY MANUFACTURING CONCERNS INCREASED PRODUCTIVITY 38 YEARLY BUT IN THE SERVICE SECTOR WHERE THREEQUARTERS OF THE WORK FORCE IS EMPLOYED GROWTH WAS ANEMIC SERVICE SECTOR COMPANIES SPENT 860 BILLION ON INFORMATION TECHNOLOGY AND GOT HALF A POINT OF PRODUCTIVITY GROWTH A YEAR SAYS STEPHEN ROACH A MORGAN STANLEY & CO ECONOMIST THAT'S A HORRIBLE RESULT FOR ALL THE MONEY SPENT BUT MR ROACH WHO HAS RAILED AGAINST FECKLESS COMPUTER INVESTMENTS FOR YEARS THINKS HE SEES A CHANGE THERE HAS BEEN A TREMENDOUS REVERSAL OF COMPLACENCY MANAGERS ARE FINALLY GETTING THE LONG OVERDUE PAYBACK FROM COMPUTING ANY PRODUCTIVITY PAYBACK IS GOOD FOR THE ECONOMY IN MOST WAYS IT HOLDS DOWN INFLATION IT PROVIDES A BASE FOR REAL INCREASES IN PAY AND PROFITS BUT COMPANIES' ABILITY TO DO MORE WORK WITH FEWER PEOPLE MAY BE ONE REASON UNEMPLOYMENT IS FALLING SO SLOWLY IRONICALLY COMPUTER PROGRAMMERS ARE AMONG THOSE FREQUENTLY LAID OFF ESPECIALLY WHEN COMPANIES MERGE AND COMBINE COMPUTER SYSTEMS ANALYSTS SAY THERE ARE A NUMBER OF REASONS THAT COMPUTERS ARE FINALLY IMPROVING PRODUCTIVITY SOME ARE TECHNOLOGICAL MR ZUCCHINI OF FLEET FINANCIAL SAYS THAT UNTIL THE TELEPHONE COMPANIES INSTALLED HIGHCAPACITY LINES IN THE MID1980S IT WASN'T POSSIBLE TO TRANSMIT ENOUGH INFORMATION FROM BANK TO BANK TO HANDLE EVERYTHING IN ONE DISTANT CUSTOMER SUPPORT CENTER THE SPREAD OF ELECTRONIC DATA INTERCHANGE KNOWN AS EDI IN WHICH COMPANIES' COMPUTERS EXCHANGE ORDERS INVOICES AND PAYMENTS ELECTRONICALLY INSTEAD OF ON PAPER IS REDUCING STAFFS WHEN BLUE CROSS & BLUE SHIELD OF VIRGINIA'S HEALTH COMMUNICATION SERVICE UNIT DEVELOPED A SYSTEM MOST INSURERS COULD USE TO SEND PAYMENTS DIRECTLY TO HOSPITALS AND DOCTORS UNIVERSITY OF VIRGINIA MEDICAL CENTER WAS ABLE TO CUT THE NUMBER OF PEOPLE KEYING VOUCHERS INTO ITS COMPUTER SYSTEM TO SEVEN FROM 14 BUT MOST REASONS ARE ECONOMIC AND CULTURAL COMPETITIVE PRESSURE IS MAKING SERVICE COMPANIES ELIMINATE COSTSMOSTLY PEOPLE INSURERS THAT NEVER REDUCED EMPLOYMENT NOW FREQUENTLY ANNOUNCE LAYOFFS BANKS ARE CONSOLIDATING AND EXECUTIVES OF THE SURVIVING BANK DON'T MIND FIRING ACQUIRED EMPLOYEES AND USING TECHNOLOGY TO CUT COSTS FOR YEARS SERVICE COMPANIES LOOKED TO COMPUTERS MOSTLY TO IMPROVE SERVICE OR IMPROVE INTERNAL PROCESSES FREDERICK SAWYER III SENIOR VICE PRESIDENT OF PHOENIX HOME LIFE MUTUAL INSURANCE CO HARTFORD CONN SAYS DURING THE '80S ALL THE COMPUTER SYSTEMS WORK WENT INTO NEW INSURANCE PRODUCT DEVELOPMENT ISSUES OF ADMINISTRATION AND CLAIMS PAYMENT WERE GETTING SHORT SHRIFT BUT SINCE PHOENIX MERGED WITH HOME LIFE LAST YEAR THE COMPANY HAS EMPHASIZED BETTER PRODUCTIVITY IT REDESIGNED THE COMPUTER SYSTEM USED TO ANSWER CUSTOMER QUESTIONS PERMITTING A 37 CUT IN THE TOTAL CUSTOMER SERVICE STAFF TO 198 FROM 316 ITS MUTUAL FUNDS MORE THAN DOUBLED NEW DEPOSITS IN 1992 AND 1991 BUT THE CUSTOMER SERVICE STAFF FOR MUTUAL FUNDS ONLY INCREASED TO 65 FROM 60 BECAUSE IT INSTALLED COMPUTERIZED IMAGE SYSTEMS TO STORE CUSTOMER CORRESPONDENCE CHECKS AND INSTRUCTIONS ELIMINATING TIME WASTED LOOKING FOR RECORDS IN FILE CABINETS SOMETIMES GETTING MORE PRODUCTIVITY OUT OF COMPUTERS REQUIRES RADICAL ACTION SALOMON BROTHERS INC DECIDED TO MOVE ITS SUPPORT OPERATIONS OUT OF NEW YORK TO TAMPA FLA TO REMAKE ITS ORGANIZATION FOR HANDLING TRADES SAYS MARC STERNFELD MANAGING DIRECTOR US OPERATIONS DESPITE ADDING NEW TRADING INSTRUMENTS THE SALOMON INC UNIT IS CUTTING SUPPORT STAFFING TO 500 FROM 670 AND FORCING TRADERS IN NEW YORK TO ENTER THEIR OWN TRADES ON COMPUTERS RATHER THAN SLIPPING HANDWRITTEN TICKETS INTO PNEUMATIC TUBES FOR LATER PROCESSING THE MOVES MEAN THAT FAR FEWER TRADES RESULT IN ERRORS THAT HAVE TO BE STRAIGHTENED OUT THE NEXT DAY NOBODY THINKS THAT MOST SERVICE COMPANIES HAVE GONE FAR ON THE ROAD TO IMPROVING PRODUCTIVITY AETNA LIFE & CASUALTY CO HARTFORD IS JUST STARTING TO ELIMINATE PROCESSES THAT INVOLVE ENTERING THE SAME DATA MANUALLY IN DIFFERENT COMPUTER SYSTEMS PENNELL HAMILTON DIRECTOR OF ORGANIZATIONAL EFFECTIVENESS IN SMALL GROUP HEALTH AT AETNA SAYS FIELD REPRESENTATIVES WHO HAD BEEN USING PORTABLE COMPUTERS TO PRINT OUT REPORTS ON CUSTOMERS TO BE MAILED TO THE HEAD OFFICECAN NOW TRANSMIT THE REPORTS DIRECTLY OVER TELEPHONE LINES THE APPLICATION THAT GETS MISSED A LOT IS THE ABILITY TO ENTER DATA JUST ONCE AT THE SOURCE HE SAYS WE'RE ONLY AT THE BEGINNING OF THE PROCESS SAYS JOHN SKERRIT MANAGING PARTNER OF ARTHUR ANDERSEN & CO'S CONSULTING GROUP WHO ADVISES FINANCIAL SERVICES COMPANIES ON USING COMPUTERS TO IMPROVE OPERATIONS TECHNOLOGIES LIKE IMAGE PROCESSING VOICE RECOGNITION TELEPHONE BANKING EXPERT SYSTEMS FOR DOING LOAN EVALUATIONS WILL CONTINUE TO CAUSE MASSIVE LAYOFFS 9303010084 930301 BOUYGUES UNIT WINS CONTRACT TO CONSTRUCT HONG KONG HIGHWAY SPECIAL TO THE WALL STREET JOURNAL HONG KONG THE HONG KONG GOVERNMENT AWARDED AN 856 MILLION HONG KONG DOLLAR US1107 MILLION CONTRACT TO A SUBSIDIARY OF BOUYGUES SA GROUP OF FRANCE TO BUILD A HIGHWAY NETWORK LINKING THE COLONY'S NEW AIRPORT WITH THE KOWLOON PENINSULA AND HONG KONG ISLAND THE SUBSIDIARY DRAGAGES & TRAVAUX PUBLICS WILL LINK CHEK LAP KOK AIRPORT VIA TUNG CHUNG LANTAU ISLAND WITH KOWLOON AND HONG KONG'S CENTRAL DISTRICT THE GOVERNMENT'S CENTRAL TENDER BOARD SAID THE BOARD SAID DRAGAGES'S BID WAS THE LOWEST AMONG THE SEVEN QUALIFIED TENDERS CONSTRUCTION WILL START THIS MONTH AND COMPLETION IS PLANNED FOR JANUARY 1997 AS PART OF THE PROJECT THE COMPANY WILL BUILD A MAJOR ELEMENT OF THE AIRPORT CORE PROJECT SPECIFICALLY THE 16 KILOMETER DUALPASSAGE THREELANE CHEUNG CHING TUNNEL ON THE TSING YI ISLAND SECTION OF ROUTE 3 RELATED BUILDINGS AND AN ADDITIONAL 09 KILOMETER OF ROADWAY ALSO ARE PART OF THE PROJECT 9303010083 930301 PAYOUT AT UNION BANK OF SWITZERLAND IS SET TO BE INCREASED 74 ZURICH UNION BANK OF SWITZERLAND ANNOUNCED A SMALL INCREASE IN ITS DIVIDEND THE BANK PLANS A DIVIDEND INCREASE OF 2 FRANCS A BEARER SHARE TO 29 FRANCS 1912 AND AN INCREASE OF 40 SWISS CENTIMES TO 580 FRANCS PER REGISTERED SHARE BOTH A 74 INCREASE OVER THE PRIOR YEAR'S DIVIDEND THE COMPANY SAID ITS 1992 GROUP NET PROFIT ROSE 104 TO 134 BILLION FRANCS FROM 122 BILLION FRANCS IN 1991 GROUP ASSETS ROSE 7 TO 2668 BILLION FRANCS FROM 2493 BILLION FRANCS IN 1991 THE PROFIT INCREASE WAS ON THE LOW END OF ANALYSTS' EXPECTATIONS OF A RISE IN THE RANGE OF 10 TO 15 BUT ANALYSTS HAD BEEN LOOKING FOR ONLY A SMALL INCREASE IN THE DIVIDEND MEANWHILE THE COMPANY SAID PRETAX CASH FLOW IN 1992 ROSE 11 TO 375 BILLION FRANCS FROM 296 BILLION FRANCS IN 1991 UNION BANK SAID ITS GROUP PROVISIONS ROSE 17 TO 96 BILLION FRANCS AT THE END OF 1992 THE BANK ALSO SAID THAT IT WILL PROPOSE TO THE GENERAL SHAREHOLDERS MEETING APRIL 29 THAT THE BANK TAKE ADVANTGE OF MORE FLEXIBLE PROVISIONS OF SHARE ISSUING ALLOWED BY SWITZERLAND'S REVISED COMPANY LAW THE AIM OF SUCH AMENDMENTS TO THE BYLAWS IS TO GIVE THE BANK MORE SCOPE THE BANK SAID IN A NEWS RELEASE SHOULD CAPITAL TRANSACTIONS PROVE NECESSARY IN THE FUTURE CONDUCIVE MARKET CONDITIONS COULD THEN BE TAPPED BUT UNION BANK ADDED THAT CURRENTLY THERE ARE NO CONCRETE PLANS FOR A CAPITAL INCREASE THE BANK ALSO SAID THAT TRADING INCOME ROSE 32 TO 17 BILLION FRANCS AS A RESULT OF EFFORTS TO INTENSIFY UBS'S PRESENCE IN MAJOR TRADING CENTERS WHICH MADE IT POSSIBLE TO TAKE ADVANTAGE OF MORE CONDUCIVE MARKET CONDITIONS DURING THE SECOND HALF OF 1992 PARENT COMPANY NET PROFIT ROSE MORE THAN 8 TO 106 BILLION FRANCS IN 1992 FROM 975 MILLION FRANCS 9303010082 930301 NOBEL'S KIHLBERG QUITS AS FINANCIAL OFFICER DUE TO EXCHANGE LOSS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH CHEMICAL GROUP NOBEL INDUSTRIER AB SAID FRIDAY THAT JAN KIHLBERG THE GROUP'S CHIEF FINANCIAL OFFICER HAD RESIGNED AS A RESULT OF THE COMPANY'S FOREIGN EXCHANGE LOSSES OF 750 MILLION KRONOR 958 MILLION IN 1992 ABOUT 300 MILLION KRONOR OF THE LOSS WAS CHARGED AGAINST 1992 EARNINGS AND SENT NOBEL'S PRETAX PROFIT ITEMS TUMBLING TO ABOUT 200 MILLION KRONOR FROM 460 MILLION KRONOR A YEAR EARLIER THE GROUP SAID PREVIOUSLY WHEN NOBEL DISCLOSED ITS EXCHANGE LOSSES ON FEB 24 IT SAID IT WOULD OVERSEE GROUP FINANCE AND CONTROL FUNCTIONS THE LOSSES WERE A RESULT OF OVERHEDGING ACCORDING TO NOBEL THE SWEDISH GROUP SAID DUE TO THE OCCURRENCE OF FOREIGN EXCHANGE LOSSES JAN KIHLBERG HAS LEFT HIS POSITION AS HEAD OF GROUP STAFF FINANCE AND CONTROL AND REMAINS AT THE DISPOSAL OF THE GROUP'S CHIEF EXECUTIVE FOR OTHER DUTIES UNTIL FURTHER NOTICE THE COMPANY MADE NO MENTION OF A SUCCESSOR TO MR KIHLBERG 9303010081 930301 INTERNATIONAL UNIT OF TELEFONICA SAYS 1992 NET ROSE 26 SPECIAL TO THE WALL STREET JOURNAL MADRID TELEFONICA INTERNACIONAL THE INTERNATIONAL UNIT OF SPAIN'S STATECONTROLLED TELECOMMUNICATIONS MONOPOLY TELEFONICA SA SAID NET PROFIT ROSE 26 IN 1992 TO 941 BILLION PESETAS 799 MILLION FROM 746 BILLION PESETAS IN 1991 TELEFONICA INTERNACIONAL OPERATES AS AN INTERNATIONAL HOLDING COMPANY FOR ITS PARENT COMPANY TELEFONICA AND THEREFORE BASES ITS INCOME ON THE RETURNS FROM INVESTMENTS EXPLAINED CHAIRMAN GERMAN ANCOCHEA TELEFONICA INTERNACIONAL HAS BOUGHT INTO TELECOMMUNICATIONS COMPANIES IN CHILE VENEZUELA ARGENTINA PUERTO RICO PORTUGAL AND ROMANIA THE COMPANY'S STRATEGY IS TO ALWAYS PARTICIPATE IN THE MANAGEMENT OF ITS HOLDING WHETHER WITH A MINORITY OR MAJORITY STAKE MR ANCOCHEA SAID TELEFONICA INTERNACIONAL IS PLANNING TO CONTINUE EXPANDING IN SOUTH AMERICA THE CARIBBEAN AND EUROPE HE SAID THE CHAIRMAN SAID TELEFONICA INTERNACIONAL IS PREPARING A BID AS PART OF A CONSORTIUM FOR AN OPERATORS' LICENSE IN COLOMBIA IN THE NEAR FUTURE MR ANCOCHEA SAID THE COMPANY HAS ALSO BEEN INVITED BY THE GREEK GOVERNMENT TO STUDY THE POSSIBILITY OF PRESENTING A BID FOR GREECE'S BASIC TELECOMMUNICATIONS OPERATOR DUE TO BE PARTIALLY PRIVATIZED TELEFONICA INTERNACIONAL IS ALSO PLANNING TO PRESENT A BID FOR A MOBILE TELEPHONE OPERATION IN ECUADOR AS WELL AS STUDYING EXPANSION FROM PUERTO RICO INTO OTHER US CARIBBEAN TERRITORIES AND PANAMA 9303010080 930301 TECHNOLOGY FDA PANEL RECOMMENDS APPROVAL OF GLAXO DRUG WASHINGTON A FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE RECOMMENDED THAT THE AGENCY APPROVE SEREVENT A DRUG PRODUCED BY GLAXO INC FOR TREATING ASTHMA FDA APPROVAL OF THE DRUG WOULD BE A BIG BOOST FOR THE COMPANY A UNIT OF GLAXO HOLDINGS PLC OF LONDON AND IT WOULD OFFER A PROMISING NEW TREATMENT FOR THE MILLIONS OF AMERICANS WHO SUFFER FROM THE RESPIRATORY AILMENT THE FDA GENERALLY FOLLOWS THE ADVICE OF ITS ADVISORY PANELS BUT IT ISN'T REQUIRED TO DO SO THE AGENCY'S PULMONARYALLERGY DRUGS ADVISORY COMMITTEE UNANIMOUSLY RECOMMENDED APPROVAL OF THE DRUG FOR ADULTS WHO SUFFER MODERATE TO SEVERE CASES OF CHRONIC OR EXERCISEINDUCED ASTHMA THE PANEL DECIDED AGAINST APPROVING THE MEDICATION FOR CHILDREN AGED FOUR THROUGH 11 BECAUSE IT BELIEVES ADDITIONAL STUDIES ARE NEEDED THE DRUG WHICH IS INHALED WORKS BY DILATING AIRWAYS SO THAT AIR CAN PASS THROUGH GLAXO SAID SEREVENT IS THE FIRST INHALED MEDICATION OF THIS KIND THAT IS LONGACTING MEANING THAT A SINGLE DOSE CAN LAST 12 HOURS AND CAN BE TAKEN TWICE A DAY MANY OTHER SUCH ASTHMA MEDICATIONS MUST BE TAKEN FOUR TIMES A DAY PEOPLE TAKING SEREVENT COULD ALSO TAKE A SHORTACTING DRUG IF THEY HAVE SEVERE SYMPTOMS WHILE ON THE LONGERTERM MEDICATION A SPOKESMAN FOR THE COMPANY SAID WE'RE PLEASE WITH THE UNANIMOUS RECOMMENDATION OF THE PANEL AND WILL CONTINUE TO WORK WITH THE FDA AS IT CONSIDERS THIS RECOMMENDATION GLAXO INC IS BASED IN RESEARCH TRIANGLE PARK NC 9303010079 930301 ASKO DEUTSCHE AGREE TO SELL OFF 102 STORES TO SPAR HANDELS AG SPECIAL TO THE WALL STREET JOURNAL SAARBRUEKEN GERMANY ASKO DEUTSCHE KAUFHAUS AG ONLY THREE MONTHS AFTER RIVAL METRO GROSSHANDELSGESELLSCHAFT ACQUIRED A CONTROLLING STAKE SAID IT WILL SELL 102 STORES IN NORTHERN GERMANY TO HAMBURGBASED SPAR HANDELS AG FINANCIAL DETAILS OF THE TRANSACTION WEREN'T DISCLOSED EXCEPT THAT THE STORES INVOLVED GENERATE ANNUAL SALES OF ABOUT 750 MILLION MARKS 4585 MILLION THE SALE WHICH WAS DESIGNED TO KEEP METRO/ASKO IN COMPLIANCE WITH A GERMAN CARTEL OFFICE DIRECTIVE WILL GO THROUGH IN TWO STEPS ON APRIL 1 AND MAY 1 IN 1992 METRO ACQUIRED A 50 PLUS STAKE IN ASKO AND PLANS TO INTEGRATE IT WITH MHB HANDELS AG IN WHICH BOTH METRO AND ASKO HOLD LARGE STAKES IN APPROVING THE TAKEOVER THE GERMAN CARTEL OFFICE REQUIRED THE COMPANIES TO DIVEST THEMSELVES BY THE END OF THE YEAR OF PROPERTIES IN REGIONS WHERE THEY HAVE A DOMINANT MARKET POSITION THE SALE OF THE NORTHERN GERMAN SUPERMARKETS DEPARTMENT STORES AND DISCOUNT STORES WILL COMPLY WITH THE CARTEL OFFICE DEMAND ASKO CHAIRMAN KLAUS WIEGANDT SAID ONE REASON ASKO HAS COMPLETED THE SALE RELATIVELY QUICKLY IS TO REMOVE THE BURDEN OF UNCERTAINTY FROM ITS EMPLOYEES OVER WHOM THEY WILL BE WORKING FOR 9303010078 930301 INTERNATIONAL BRIEF SAABSCANIA AB SAAB AUTOMOBILE REPORTS PRETAX LOSS WIDENED IN '92 SAAB AUTOMOBILE AB SWEDEN SAID ITS PRETAX LOSS AFTER FINANCIAL ITEMS WIDENED 20 TO 269 BILLION KRONOR 3435 MILLION IN 1992 FROM A CORRESPONDING LOSS OF 224 BILLION KRONOR A YEAR EARLIER CITING ONETIME COSTS FOR STRUCTURAL COSTS AND THE DOWNTURN IN THE GLOBAL AUTO MARKET SALES IN THE YEAR FELL 22 TO 1469 BILLION KRONOR FROM 1502 BILLION KRONOR A YEAR EARLIER DURING THE YEAR ABOUT 86800 CARS WERE SOLD TO CUSTOMERS DOWN FROM 87500 UNITS IN 1991 IT SAID SAAB AUTOMOBILE AB IS JOINTLY OWNED BY SAABSCANIA AB OF SWEDEN AND GENERAL MOTORS CORP OF THE US SAAB PREDICTED A SIGNIFICANTLY IMPROVED RESULT FOR 1993 BUT DIDN'T ELABORATE 9303010077 930301 STINGRAYS ONCE HAD AN IMAGE PROBLEM NOW THEY'RE CUDDLY WHICH ON GRAND CAYMAN CUTS SEVERAL WAYS FOR THE FISH PAT KENNEY'S SPOILED IDYLL BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL GRAND CAYMAN BRITISH WEST INDIES TO UNDERSTAND HOW TWO DOZEN SOUTHERN STINGRAYS FOUR FEET WIDE OVERCAME THEIR TRASHFISH REPUTATIONS STEALTH BOMBER LOOKS AND DECADES OF HUMAN FEAR AND LOATHING TO BECOME GREGARIOUS SUBSEA CELEBRITIES WORTH MILLIONS OF DOLLARS TO THIS ISLAND'S ECONOMY IT HELPS TO KNOW SOMETHING ABOUT THE WAYNE MICH POLICE DEPARTMENT ESPECIALLY IN WINTER THERE THROUGH THE 1970S AND EARLY '80S TOILED LT PATRICK KENNEY A DETROIT HIGHSCHOOL DROPOUT WHO GREW UP THINKING STINGRAYS HAD FOUR WHEELS AND HOT ENGINES HAVING LANDED IN VIETNAM AS A MARINE IN MARCH 1965 SURVIVED COME HOME AND FATHERED TWO CHILDREN HE BEGAN TO FEEL HIS JOBSATISFACTION LEVEL SINK WITH EVERY PETTY DRUG BUST AND FRIGID OVERCAST FEBRUARY IT GOT HARDER AND HARDER TO GO HOME FROM DIVING VACATIONS IN THE CARIBBEAN FINALLY IN 1982 PAT KENNEY THEN 35 YEARS OLD LEFT WAYNE'S WORLD FOR GOOD HE SETTLED ON THIS ISLAND 490 MILES SOUTH OF MIAMI GOT WORK AS A DIVING GUIDE MET HIS SECOND WIFE AND BEGAN HANGING AROUND WITH SOME MENACINGLOOKING STINGRAYS IN A MANGROVEFRINGED LAGOON CALLED NORTH SOUND SOUTHERN STINGRAYS ONE OF MANY SPECIES OF SKATES AND RAYS ARE FLAT KITESHAPED CARTILAGINOUS COUSINS OF SHARKS DRAB GRAY ON TOP WHITE ON THE BOTTOM THAT FEED MAINLY ON WORMS CRUSTACEANS AND SHELLFISH A POISONOUS BUT NOT DEADLY SERRATED STINGER SEVERAL INCHES LONG ADORNS THEIR TAIL FOR DEFENSE BUT THEY DON'T STING DIVERS STINGRAYS TEND TO BE SKITTISH AND AVOID DIVERS BUT THESE RAYS WERE DIFFERENT FOR YEARS CAYMAN FISHERMEN HAD TAKEN REFUGE FROM THE OPEN OCEAN IN THE LAGOON'S SANDY SHALLOWS JUST BEHIND A BARRIER REEF THERE THEY WOULD CLEAN FISH AND CONCHES AND TOSS DISCARDS INTO THE WATER WHERE THE RAYS AND OTHER FISH WOULD SCARF THEM UP IT HAPPENED REGULARLY ENOUGH SO THE RAYS LEARNED TO HANG AROUND GRADUALLY DIVERS BEGAN TO ANCHOR THEIR BOATS THERE TO REST AND EAT BETWEEN DIVES ON THE OUTER BARRIERREEF WALL WE'D HAVE LUNCH AND SNORKEL AND THREE OR FOUR RAYS ALWAYS HUNG AROUND SAYS MR KENNEY WHO ALONG WITH FELLOW DIVE MASTER JAY IRELAND WAS LEADING NORTH WALL DIVE TRIPS FOR BOB SOTO'S DIVING LTD IN 1986 IN WHAT MR KENNEY SAYS WAS A SORT OF EPIPHANY ONE RAY BEGAN EATING OUT OF THEIR HANDS THEY NAMED IT HOORAY OTHER RAYS QUICKLY LOST THEIR SHYNESS AND JOINED IN IT WAS THRILLING SAYS MR KENNEY IN PART BECAUSE I DIDN'T KNOW WHETHER THE DAMNED THINGS HAD TEETH THEY DON'T THEY SUCK FOOD INTO THEIR SOFTBALLSIZED MOUTHS AND CRUSH IT WITH POWERFUL JAWS INTRIGUED MR KENNEY BEGAN VISITING THEM ON WEEKENDS AND DAYS OFF MORE RAYS SHOWED UP TO BE FED COVERING HIM LIKE SOMBREROS AND ACTING LIKE PUPPIES HE BEGAN TO TELL THEM APART SEE DIFFERENT PERSONALITIES AND NAME THEM JAYRAY AND STUBBY MALE NAMES BECAUSE HE DIDN'T REALIZE THEY WERE FEMALES MALES ARE ONLY HALF THE SIZE OF FEMALES WORD SPREAD UNDERWATER PHOTOGRAPHERS FILMMAKERS AND MARINE SCIENTISTS ARRIVED SO FAR AS ANYONE KNEW THIS KIND OF MANRAY INTERACTION HADN'T HAPPENED BEFORE DIVERS HAVE LONG FED GROUPERS MORAY EELS AND EVEN SHARKS TURNING THEM INTO PLIANT PHOTO MODELS BUT STINGRAYS HAD PREVIOUSLY KEPT THEIR DISTANCE LIKE MANY MISUNDERSTOOD MARINE CREATURES STINGRAYS WERE LONG CONDEMNED BECAUSE OF THEIR LOOKS TO MONSTER STATUS POPULAR MECHANICS MAGAZINE IN 1930 BEFORE SCUBADIVING GEAR WAS INVENTED LUMPED STINGRAYS SPOTTED EAGLE RAYS MANTA RAYS SHARKS AND KILLER WHALES AS OUTLAWS OF THE SEA CALLING THEM VERMIN OF THE DEEP AND VICIOUS AND VALUELESS MARAUDERS THAT GOVERNMENTS SHOULD ENDEAVOR TO WIPE OUT EVEN WHEN SKIN DIVER MAGAZINE PUT CAYMAN'S RAYS ON ITS COVER IN SEPTEMBER 1987 ITS HEADLINE READ STINGRAYS FRIEND OR FOE BUT THE ARTICLE ITSELF STRESSED THEIR FRIENDLY SIDE DUBBING THEIR HAUNT STINGRAY CITY DIVERS FLOODED GRAND CAYMAN ALREADY A SCUBA MECCA TO FROLIC WITH THE RAYS BY 1989 THE YEAR THE RAYS MADE THE COVERS OF BOTH THE CAYMAN ISLANDS PHONE BOOK AND NATIONAL GEOGRAPHIC STINGRAY CITY AN OTHERWISE BORING PATCH OF SAND IN JUST 12 FEET OF WATER WAS ON ITS WAY TO BECOMING THE SINGLE MOST POPULAR DIVE SITE IN THE WORLD DOZENS OF DIVEBOAT OPERATORS WERE RUNNING RAYFEEDING TRIPS FOR GROUPS OF 10 TO 25 DIVERS SOME BOATS CATERING TO VISITING CRUISE SHIPS BROUGHT 50 TO 120 SNORKELERS AT A TIME SOMETIMES HALF A DOZEN BOATS ANCHORED THERE AT ONCE THE RAYS WERE GREATLY OUTNUMBERED BUT DIDN'T SEEM TO MIND DAVID VOUSDEN WHO HEADS THE GOVERNMENT'S NATURAL RESOURCES UNIT WHICH MONITORS CAYMAN'S MARINE ENVIRONMENT ESTIMATES THAT STINGRAY CITY IS VISITED WEEKLY BY NEARLY 1700 DIVERS AND 1200 SNORKELERS WHO PAY FROM 20 TO 45 EACH TO BOAT OPERATORS BY HIS CALCULATION THE RAYS WHICH WOULD SELL FOR MAYBE 5 A POUND AS FISH MARKET FILLETS OR FAKE SCALLOPS BRING IN NEARLY 100000 A WEEK OR 52 MILLION A YEAR MR KENNEY GOT NEITHER RICH NOR FAMOUS HE DID HOWEVER HAVE SECOND THOUGHTS AS MORE AND MORE PEOPLE ARRIVED I BEGAN TO THINK I'D CREATED A REAL MONSTER HE SAYS STINGRAY HICKEYS BECAME BADGES OF HONOR AMONG DIVERS SINCE A RAY'S EYES ARE ON ITS TOP SIDE AND ITS MOUTH IS ON ITS BOTTOM IT CAN'T SEE WHAT IT IS EATING AND SOMETIMES LATCHES BRIEFLY ON TO A DIVER'S SKIN CAUSING A BRUISE LURED BY THE FOOD BROUGHT FOR THE RAYS THE LOCAL POPULATION OF YELLOWTAIL SNAPPERS EXPLODED THE YELLOWTAILS IN TURN LURED MORE SPORT FISHERMEN THE RAYS WENT AFTER THE BAIT TOO GETTING HOOKED IN THE PROCESS USUALLY THEY ARE ABLE TO BREAK THE FISHING LINE WITH EASE THE RESULT LOTS OF RAYS SWIMMING AROUND WITH HOOKS IN THEIR MOUTHS AND LINE STREAMING BEHIND MR KENNEY STARTED HIS OWN HOOKREMOVAL SERVICE CAREFULLY EXTRICATING HOOKS WITH WIRE CUTTERS HE SWEARS SOME RAYS APPROACHED HIM SPECIFICALLY TO GET THEIR HOOKS REMOVED THE SAME WAY BIG FISH ALLOW LITTLE FISH TO CLEAN OFF THEIR PARASITES HE HAS A COLLECTION OF MORE THAN 30 REMOVED HOOKS HE ALSO REMOVED AN UNDERWATER KNIFE STUCK IN ONE RAY IT GOT TO A POINT A COUPLE OF YEARS AGO WHEN ROGUE DIVERS WITH VIDEOS WOULD STAB OR GASH A FRIENDLY RAY TO MAKE IT BLEED IN ORDER TO ATTRACT BIG BULL SHARKS AND HAMMERHEADS WHICH FEED ON RAYS FOR FILMING THE LOCAL DIVE OPERATORS ASSOCIATION ESTABLISHED RULES FOR STINGRAY CITY NO GLOVES WHICH ARE LIKE SANDPAPER ON THE RAYS' VELVETY SKIN ONLY DIVE GUIDES ARE SUPPOSED TO FEED SQUID OR BALLYHOO A BAITFISH TO THE RAYS BUT MR KENNEY AND OTHERS BEGAN TO DISCOVER DISCARDED PLASTIC BAGS ON THE BOTTOM EVIDENCE OF DIVERS SNEAKING IN FOOD FOR THE RAYS THE BAGS STILL SMELLING OF FOOD ARE ALSO DANGEROUS TURTLES BIRDS AND FISH INCLUDING RAYS SWALLOW THEM CAN'T DIGEST OR DISLODGE THEM AND DIE DR TOM BYRNES A 36YEAROLD MARINE BIOLOGIST WHO OPERATES THE CAYMAN MARINE LABORATORY IS A STAUNCH CONSERVATIONIST WHO PROTECTS CORAL BY BANNING GLOVES ON THE DIVES HE LEADS HE ISN'T CRAZY ABOUT THE CIRCUS ASPECTS OF STINGRAY CITY BUT SAYS IT'S A SMALL PRICE TO PAY FOR EDUCATING ALL THESE PEOPLE THAT THESE WONDERFUL CREATURES AREN'T MONSTERS PAT KENNEY SAYS DISPELLING MYTHS IS IMPORTANT UP TO A POINT FOR HIM THAT POINT WAS OCTOBER 1991 BITTER AND DISGUSTED BY THE HUBBUB HE HELPED CREATE PAT KENNEY NOT ONLY QUIT GOING TO STINGRAY CITY HE QUIT DIVING ENTIRELY NOW HE PLAYS RUGBY FOR EXERCISE HE AND HIS WIFE OPERATE TWO BOUTIQUES LAST MONTH HE GOT LAID OFF FROM HIS JOB WITH AN IMPORT COMPANY 9303010076 930301 BUSINESS BRIEF NAN YA PLASTICS CORP PRETAX PROFIT IN 1992 FELL 4 SALES RISE OF 37 SEEN FOR '93 NAN YA PLASTICS CORP TAIWAN'S LARGEST PRIVATE ENTERPRISE AND ONE OF THE WORLD'S LEADING PLASTICS PROCESSORS SAID THAT 1992 PRETAX PROFIT FELL 4 TO 582 BILLION NEW TAIWAN DOLLARS US2273 MILLION FROM A YEAR EARLIER TU JINLUNG ASSISTANT TRADING MANAGER AT GRAND CATHAY SECURITIES CORP SAID THAT NAN YA'S 1992 SALES THOUGH GROWING ONLY 02 WAS ONE OF JUST FOUR AMONG THE 16 LISTED PLASTICS MANUFACTURERS THAT REPORTED SALES GROWTH LAST YEAR A COMPANY OFFICIAL SAID THAT FOR THE CURRENT YEAR NAN YA PLANS TO HIT A SALES TARGET OF NT662 BILLION UP 37 FROM LAST YEAR WITH PROFIT GOAL RISING 38 TO NT604 BILLION HE NOTED THAT THE COMPANY PLANS TO INVEST NT233 BILLION THIS YEAR TO EXPAND ITS PRODUCTION FACILITIES 9303010075 930301 WEAN TO MISS PAYMENT OF 13 MILLION ON DEBT POSTS 4THQUARTER LOSS PITTSBURGH WEAN INC CITING WEAK DEMAND FOR ITS METAL FINISHING AND PROCESSING PRODUCTS REPORTED A FOURTHQUARTER LOSS AND SAID IT WOULD MISS ABOUT 13 MILLION IN PAYMENTS DUE TODAY ON CERTAIN NOTES BY OMITTING THE PAYMENTS WEAN RETAINS ITS FINANCIAL AND OPERATIONAL ABILITIES TO MEET CUSTOMER COMMITMENTS AND ALL OTHER OBLIGATIONS THE COMPANY SAID WEAN DOES NOT VIEW BANKRUPTCY PROCEEDINGS AS A PREFERRED ALTERNATIVE TO RESTRUCTURING THE DEBT THE COMPANY SAID CHAIRMAN RJ WEAN III DECLINED TO SAY WHETHER IT'S LIKELY THAT WEAN WILL FILE FOR BANKRUPTCY WEAN HAD A LOSS OF 18 MILLION OR 62 CENTS A SHARE ON SALES OF 15 MILLION IN THE YEARAGO QUARTER WEAN EARNED 12 MILLION OR 34 CENTS A SHARE AFTER AN EXTRAORDINARY GAIN OF SEVEN CENTS A SHARE TODAY IS THE REDEMPTION DATE FOR ABOUT 12 MILLION PRINCIPAL AMOUNT OF 55 CONVERTIBLE SUBORDINATED DEBENTURES PLUS 331000 IN INTEREST ON THOSE NOTES WEAN TRIED TO RESTRUCTURE THAT DEBT BY OFFERING HOLDERS THE CHANCE TO EXCHANGE THE NOTES FOR NEW 8 SENIOR CONVERTIBLE SUBORDINATED NOTES DUE 2004 THE NOTES HAVE A SINKING FUND THAT BEGINS IN 1992 AND CAN BE CONVERTED TO WEAN COMMON AT A PRICE OF 5 A SHARE THE DEADLINE FOR MAKING THE EXCHANGE WAS FEB 5 WEAN EXTENDED THE DEADLINE TO FEB 19 AND ON FRIDAY REEXTENDED THE DEADLINE TO TODAY WEAN MUST ALSO PAY TODAY 278000 IN INTEREST AND 454000 IN SINKING FUND PAYMENTS ON ITS 10 AND 12 NOTES IT'S UNCLEAR WHEN THOSE NOTES ARE DUE 9303010073 930301 BUSINESS BRIEF MINERALS TECHNOLOGIES INC BUYBACK OF 25 MILLION SHARES FROM PFIZER INC IS PLANNED MINERALS TECHNOLOGIES INC NEW YORK SAID ITS BOARD AUTHORIZED THE BUYBACK OF 25 MILLION SHARES FROM PFIZER INC WHICH ANNOUNCED THURSDAY A SECONDARY OFFERING OF 755 MILLION MINERALS TECHNOLOGIES SHARES MINERALS TECHNOLOGIES WHICH PRODUCES SPECIALTY MINERALS AND MINERAL PRODUCTS IS A FORMER UNIT OF PFIZER IF BOTH THE BUYBACK AND PFIZER'S SECONDARY OFFERING GO AS PLANNED INCLUDING THE FULL EXERCISE OF AN UNDERWRITERS' OPTION TO BUY 750000 SHARES PFIZER WILL HAVE DISPOSED OF ALL ITS MINERALS TECHNOLOGIES STOCK THE NEW YORK HEALTHCARE COMPANY OWNS 1055 MILLION OR 402 OF MINERALS TECHNOLOGIES' 25 MILLION SHARES OUTSTANDING MINERALS TECHNOLOGIES SAID IT WILL BUY BACK ITS SHARES IN A PRIVATE TRANSACTION AT PFIZER'S PUBLIC OFFERING PRICE MINUS UNDERWRITING DISCOUNTS AND COMMISSIONS 9303010072 930301 SIEMENS UNIT ACCUSES ARCO OF FRAUD IN 1990 SALE OF SOLAR ENERGY DIVISION BY JONATHAN M MOSES AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL IN A BLISTERING LAWSUIT A UNIT OF SIEMENS AG ACCUSED ATLANTIC RICHFIELD CO OF COMMITTING FRAUD IN THE 1990 SALE OF ITS PROMINENT SOLAR ENERGY UNIT THE SUIT WHICH SEEKS NEARLY 150 MILLION IN DAMAGES WAS FILED IN US DISTRICT COURT IN NEW YORK IT CONCERNS THE 359 MILLION SALE THREE YEARS AGO OF ARCO SOLAR A 400EMPLOYEE UNIT MAKING PHOTOVOLTAIC PRODUCTS THAT CONVERT SUNLIGHT INTO ELECTRICITY TO SIEMENS SOLAR INDUSTRIES A UNIT OF THE GERMAN CONGLOMERATE ARCO HAD ACQUIRED A TINY VENTURE IN 1977 AND TURNED IT INTO WHAT WAS BY FAR THE WORLD'S LARGEST PRODUCER OF SOLAR ENERGY PRODUCTS POURING ABOUT 200 MILLION INTO THE PROJECT AND SHOWERING IT WITH PROMOTION BUT IT WAS NEVER PROFITABLE THE UNUSUALLY DETAILED LAWSUIT ALLEGES THAT LOS ANGELESBASED ARCO SOLD THE SOLAR UNIT TO SIEMENS DESPITE KNOWING THAT THE PRODUCTS BEING DEVELOPED AT ITS CAMARILLO CALIF MANUFACTURING FACILITY WOULD NOT BE COMMERCIALLY VIABLE INCLUDED IN THE LAWSUIT ARE PORTIONS OF INTERNAL COMPUTER COMMUNICATIONS THAT SIEMENS'S LAWYERS SAID WERE EXCHANGED AMONG ARCO EMPLOYEES ONE SUCH COMPUTER MESSAGE WRITTEN LESS THAN TWO MONTHS BEFORE THE DEAL CLOSED READS AS IT APPEARS THAT TFS ARCO'S SOLAR CELL TECHNOLOGY IS A PIPE DREAM LET SIEMENS HAVE THE PIPE ANOTHER COMPUTER MESSAGE WRITTEN ABOUT TWO WEEKS BEFORE THE DEAL CLOSED READS WE WILL ATTEMPT TO FINESSE PAST SIEMENS THE FACT THAT WE HAVE HAD A GREAT DEAL OF TROUBLE IN SUCCESSFULLY TRANSITIONING TECHNOLOGY FROM THE LABORATORY TO THE MANUFACTURING FLOOR IN A STATEMENT ARCO'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL FRANCIS X MCCORMACK SAID ARCO REJECTS THE CONTENTION THAT SIEMENS ONE OF THE WORLD'S LARGEST AND MOST SOPHISTICATED ENGINEERING COMPANIES AND A LEADER IN PHOTOVOLTAIC TECHNOLOGIES WAS HOODWINKED INTO BUYING ARCO SOLAR INC AN ARCO SUBSIDIARY AT NO TIME DID ARCO MISREPRESENT THE FACTS ABOUT ARCO SOLAR'S TECHNOLOGY OR BUSINESS DURING MONTHS OF NEGOTIATION PRIOR TO THE SALE SIEMENS PERSONNEL HAD ACCESS TO ARCO SOLAR'S OPERATIONS AND SPENT COUNTLESS HOURS EXAMINING FACILITIES AND PROCESSES IN ADDITION DURING THE THREEYEAR PERIOD PRIOR TO THE SALE ARCO SOLAR AND SIEMENS WERE JOINTVENTURE PARTNERS IN A BUSINESS INVOLVING THE USE OF ARCO SOLAR'S THINFILM TECHNOLOGY THE STATEMENT CONTINUED CONCLUDING ARCO WILL VIGOROUSLY DEFEND THE CASE IN COURT AN ARCO SPOKESMAN WOULDN'T COMMENT ON THE COMPUTER MESSAGES AND SAID THE COMPANY HAD BEEN ANTICIPATING THE LAWSUIT SIEMENS BASED IN MUNICH IS SEEKING TO BE REIMBURSED FOR THE 359 MILLION IT PAID FOR THE UNIT IN ADDITION IT IS SEEKING TO RECOVER THE 20 MILLION A YEAR IT LOST IN OPERATING THE UNIT SINCE IT WAS PURCHASED THREE YEARS AGO ON TOP OF THAT SIEMENS WANTS ARCO TO PAY 50 MILLION IN PUNITIVE DAMAGES BECAUSE THE LAWSUIT ALLEGES THE FRAUD WAS INTENTIONAL 9303010071 930301 ASIA'S BUILDING SPREE ELUDES INVESTORS WHO SEEK OBVIOUS INFRASTRUCTURE PLAYS BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ASIA IS ON A BUILDING SPREE BUT MAKING MONEY OFF THE MASSIVE RENOVATION IS PROVING TO BE ONE OF THE REGION'S TOUGHEST STOCKMARKET GAMES IN FACT FROM SOUTH KOREA'S STEEL MILLS TO MALAYSIA'S OVERWORKED POWER PLANTS THE REGION'S MOST OBVIOUS INFRASTRUCTURE PLAYS ARE OFTEN THE WRONG ONES HONG KONG IS FAMOUS FOR ITS AIRPORT AND MASSTRANSIT PROJECTS BUT ITS BEST INFRASTRUCTURE PLAYS ARE KNOWN FOR THEIR WORK IN CHINA THAILAND IS POURING MONEY INTO ROADWAYS AND BRIDGES BUT ITS BIG CEMENT SHARES ARE SAGGING THE PRIVATIZATION OF A LARGE TAIWANESE CONSTRUCTION COMPANY FLOPPED EARLY THIS YEAR DESPITE TAIWAN'S CONSTRUCTION BOOM FROM A DISTANCE ASIA'S INFRASTRUCTURE STORY SEEMS SIMPLE ENOUGH INFRASTRUCTURE SPENDING SHOULD COMPRISE A ROBUST 8 OF EAST ASIA'S REGIONAL GROSS DOMESTIC PRODUCT BETWEEN 1991 AND 1997 ACCORDING TO HG ASIA LTD GDP MEASURES THE VALUE OF A NATION'S OUTPUT OF GOODS AND SERVICES LESS FOREIGN INCOME ASIAN GOVERNMENTS DON'T WANT TO FINANCE HUGE PROGRAMS ENTIRELY THROUGH DEBT AND TAXES SO LOTS OF THAT BUSINESS HAS BEEN GIVEN TO THE PRIVATE SECTOR BUT BECAUSE DIFFERENT COMPANIES PRODUCE MORE OR LESS THE SAME KIND OF BRIDGES ROADS OR PHONE LINES BIG INFRASTRUCTURE COMPANIES ARE VULNERABLE TO NEW COMPETITION A THREAT THAT VARIES WIDELY AMONG COUNTRIES AND WITHIN A COUNTRY AMONG SECTORS TO FIND THE WINNERS OF ASIA'S INFRASTRUCTURE GAME INVESTORS HAVE TO TAKE A CAREFUL LOOK AT EACH SECTOR'S DIFFERENT RULES CONSIDER THE DIFFERENCES BETWEEN CEMENT SHARES IN THAILAND AND IN MALAYSIA AFTER YEARS OF STRONG GROWTH THAILAND IS NOW PRODUCING ABOUT 10 MORE CEMENT THAN IT NEEDS SAYS PETER SCHIEFELBEIN RESEARCH MANAGER AT STANDARD CHARTERED SECURITIES ASIA LTD THAT'S NOT DISASTROUS FOR CEMENT COMPANIES HE ADDS BUT IN THE HEATING COMPETITION FOR MARKET SHARE THE WINNER STANDS OUT IT ISN'T BLUECHIP SIAM CEMENT CO WHOSE SHARES ENDED FRIDAY AT 460 BAHT 1811 AFTER LOSING 15 SINCE THE END OF 1992 SIAM CEMENT REPORTED A 23 DROP IN NET EARNINGS IN 1992 PARTLY BECAUSE AN UPSTART CEMENT COMPANY BEGAN SUPPLYING ITS SMALL COMPETITORS IN THE CONSTRUCTIONMATERIALS BUSINESS THAT UPSTART TPI POLENE CO IS THE WINNER MR SCHIEFELBEIN SAYS ITS SHARES HAVE FALLEN 12 SO FAR THIS YEAR TO 835 BAHT BUT HE ARGUES THAT IT STANDS A BETTER CHANCE THAN BIG PRODUCERS OF GROWING IN THE FACE OF FLAT DEMAND SIMPLY BECAUSE ITS CURRENT CAPACITY IS A TINY 25 MILLION METRIC TONS OF CEMENT A YEAR JUST OVER THE BORDER IN MALAYSIA WHERE THERE'S A SHORTAGE OF CEMENT SHARES OF BLUECHIP PRODUCER KEDAH HOLDINGS BHD HAVE JUMPED 25 SO FAR THIS YEAR TO 334 MALAYSIAN DOLLARS US127 THE GOVERNMENT WILL BOOST CEMENT PRICES TO KEEP THEM IN LINE WITH THE RISING COSTS OF CEMENTMAKING MACHINERY KUALA LUMPUR ANALYSTS SAY INVESTORS ARE BETTING THAT AS ONE OF MALAYSIA'S BIGGEST CEMENT PRODUCERS KEDAH WILL BENEFIT MOST FROM SUCH AN INCREASE BUT EVEN IN THE FACE OF A SHORTAGE THE OBVIOUS BLUECHIP SHARES DON'T NECESSARILY DO WELL INDEED SHARES OF MALAYSIA'S BIG ELECTRICAL UTILITY TENAGA NASIONAL BHD HAVE LOST 9 SO FAR THIS YEAR TO M9 UNLIKE ITS COUNTERPARTS IN THE CEMENT SECTOR THE POWER COMPANY'S VIRTUAL MONOPOLY IS ACTUALLY THREATENED BY AN ELECTRICITY SHORTAGE MALAYSIA'S GOVERNMENT IS EAGER TO TAP NEW POWER QUICKLY BY LETTING INDEPENDENT POWER PRODUCERS BUILD AND OPERATE THEIR OWN GENERATORS THE ONLY LISTED ONE OF THEM YEOH TEOH LAY CORP HAS SEEN ITS SHARES SOAR 423 TO M595 AND JUST TO PROVE THAT THE SAME STORY DOESN'T APPLY IN EVERY COUNTRY'S POWER SHORTAGE A SIMILAR SITUATION IN THE PHILIPPINES IS GOOD NEWS FOR ITS BIGGEST ELECTRICAL UTILITY THE COUNTRY IS SHORT 700 MEGAWATTS OF ELECTRICITY IN HOTWEATHER MONTHS WHEN HYDROELECTRIC GENERATORS RUN MOST SLOWLY AND DEMAND IS HIGHEST THE GOVERNMENT EXPECTS 1000 MEGAWATTS TO COME ON LINE IN THE NEXT FEW MONTHS IF YOU THINK THE POWER SUPPLY WILL IMPROVE THE STOCK IS MERALCO SAYS JOEY ALCIDA AN ANALYST AT BARING SECURITIES PHILIPPINES INC REFERRING TO MANILA ELECTRIC CO THE COMPANY DISTRIBUTES ELECTRICITY TO THE AREA AROUND MANILA WHICH MAKES UP 40 OF THE PHILIPPINES' GDP AND AS A DISTRIBUTOR THE COMPANY ISN'T THREATENED BY NEW PRODUCTION ITS SHARES HAVE JUMPED 37 SO FAR THIS YEAR TO 2875 PESOS 1159 DETERMINING WHICH PUBLIC COMPANIES WILL ACTUALLY GROW WELL IN ASIA'S BUILDING BOOM IS TOUGH ENOUGH FINDING SOMETHING CHEAP AMONG THEM SEEMS NEARLY IMPOSSIBLE OF 16 ASIAN INFRASTRUCTURE PLAYS OUTLINED IN A REPORT BY HG ASIA THIS MONTH 10 ARE TRADING AT PRICES MORE THAN 15 TIMES THE FIRM'S FORECASTS FOR THEIR 1993 EARNINGS PER SHARE FIVE OF THOSE ARE TRADING AT MORE THAN 20 TIMES 1993 EARNINGSPERSHARE FORECASTS TO BE SURE ASIA'S INFRASTRUCTURE GROWTH IS BENEFITING ITS STOCK MARKETS IN OTHER WAYS THE NEED TO MOBILIZE DOMESTIC CASH TO FINANCE HUGE PROJECTS IS ENCOURAGING THE GROWTH OF INSTITUTIONAL INVESTORS IN ASIA SAYS AJAY KAPUR A SENIOR ECONOMIST AT PEREGRINE BROKERAGE LTD BUT GET READY IT ALSO MEANS GOVERNMENTS ARE KEEN TO SELL THEIR OWN SHARES IN INFRASTRUCTURE COMPANIES THIS YEAR AND THAT MEANS MORE TOUGH CHOICES FOR INVESTORS 9303010069 930301 POLITICS & POLICY RACIAL ECONOMIC DISPARITIES REQUIRE HIGHER US OUTLAYS STUDY GROUP SAYS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE KERNER COMMISSION'S FAMOUS 25YEAROLD WARNING THAT AMERICAN SOCIETY WAS MOVING TOWARD TWO SOCIETIES ONE BLACK ONE WHITE SEPARATE AND UNEQUAL HAS BECOME A REALITY A PRIVATE FOUNDATION SAYS THE ORGANIZATION THE MILTON S EISENHOWER FOUNDATION CALLS FOR A 10YEAR PROGRAM TO INCREASE SPENDING FOR CHILDREN AND FAMILIES AND ASSOCIATED NEEDS SUCH AS HOUSING BY 30 BILLION ANNUALLY A NONPROFIT GROUP FOUNDED IN 1981 BY SEVERAL MEMBERS AND AIDES TO THE KERNER COMMISSION AND TWO OTHER 1960SERA PRESIDENTIAL PANELS THE FOUNDATION SAID THE EARLIER PROPHECY IS MORE RELEVANT TODAY THAN IN 1968 AND MORE COMPLEX WITH THE EMERGENCE OF MULTIRACIAL DISPARITIES AND GROWING INCOME SEGREGATION THE FOUNDATION'S PRESIDENT LYNN CURTIS ACKNOWLEDGED THERE HAVE BEEN IMPROVEMENTS IN RECENT DECADES FOR MINORITIES AND DISADVANTAGED AMERICANS INCLUDING THE EMERGENCE OF A LARGE BLACK MIDDLE CLASS AND THE INCREASED PROPORTION OF MINORITY TEENAGERS GRADUATING FROM HIGH SCHOOL BUT THE DOWNSIDE CLEARLY OUTWEIGHS THE UPSIDE HE SAID POINTING TO THE SUBSTANTIAL RISE IN CHILDREN IN POVERTY AND SHARP CUTBACKS IN GOVERNMENT HOUSING AID THE KERNER COMMISSION OFFICIALLY KNOWN AS THE NATIONAL ADVISORY COMMISSION ON CIVIL DISORDERS ISSUED ITS WARNING IN A REPORT PRESENTED TO PRESIDENT LYNDON JOHNSON ON MARCH 1 1968 ITS HEAD FORMER ILLINOIS GOV OTTO KERNER WAS APPOINTED BY PRESIDENT JOHNSON IN JULY 1967 IN THE WAKE OF THE 1965 WATTS RIOTS IN LOS ANGELES AND SEVERE RIOTING IN THE SUMMER OF 1967 ESPECIALLY IN DETROIT AND NEWARK THE INCREASED SPENDING ADVOCATED BY THE EISENHOWER FOUNDATION WOULD DWARF THE CLINTON ADMINISTRATION'S PLANNED EFFORT THE ADMINISTRATION HAS PROPOSED INCREASING ALL DOMESTIC DISCRETIONARY SPENDING BY 68 BILLION OVER THE NEXT FOUR YEARS MR CURTIS SAID HE NEVERTHELESS WELCOMES THE ADMINISTRATION PROPOSALS IN ITS REPORT THE EISENHOWER FOUNDATION TOUTED A RAFT OF GOVERNMENT AND PRIVATE PROGRAMS INCLUDING THE HEAD START PRESCHOOL EDUCATION PROGRAM FOR DISADVANTAGED CHILDREN AND JOB CORPS A FEDERAL JOB TRAINING AND PLACEMENT SYSTEM FOCUSED ON THE HIGHESTRISK YOUTH THE CLINTON ADMINISTRATION PLANS SPENDING INCREASES FOR BOTH THE FOUNDATION ALSO PROPOSES CREATION OF A NONPROFIT CORPORATION FOR YOUTH INVESTMENT TO BE BACKED WITH FEDERAL AND PRIVATE FUNDS TO REPLICATE ACROSS THE COUNTRY SUCCESSFUL PROGRAMS BY COMMUNITY NONPROFIT ORGANIZATIONS ROBERT RECTOR SENIOR POLICY ANALYST FOR THE CONSERVATIVE HERITAGE FOUNDATION SHARPLY DISAGREED WITH THE CALL FOR MORE SPENDING HE ARGUED THAT GOVERNMENT SOCIALWELFARE SPENDING HAS ONLY EXACERBATED URBAN PROBLEMS NOT EASED THEM HE QUESTIONED THE USEFULNESS OF HEAD START AND THE JOBS CORPS ADDING WE SHOULDN'T BE POURING MORE MONEY INTO PROGRAMS LONG AGO SHOWN TO BE INEFFECTIVE HE SAID INSTEAD HE SAID THE GOVERNMENT SHOULD FOCUS ON INCREASING WORK EFFORT AND MARRIAGE RATES IN THE INNER CITY TAKING TOUGHER STEPS TO KEEP REPEAT CRIMINALS OFF THE STREETS CHANGING THE PUBLIC SCHOOL SYSTEM BY OFFERING VOUCHERS FOR CHILDREN TO GO TO PRIVATE AND PAROCHIAL SCHOOLS AND ENLISTING HELP FROM BLACK CHURCHES TO REBUILD MORAL CHARACTER WHILE HE DOUBTLESS WOULD DISAGREE WITH MOST OF MR RECTOR'S POINTS THE REV JESSE JACKSON ALSO IS STRESSING THE IMPORTANCE OF IMPROVED BEHAVIOR BY PEOPLE ESPECIALLY YOUNG PEOPLE WHO ARE LIVING IN POVERTY THERE MUST BE MORE FOCUS ON THE BEHAVIOR OF PEOPLE HE TOLD REPORTERS RECENTLY 9303010068 930301 MANAGER'S JOURNAL FREE AT LAST FREE AT LAST BY HARVEY GITTLER JACK F WAS FIRED FROM HIS JOB AS PLANT MANAGER A COUPLE OF WEEKS AGO WHAT NONE OF US COULD UNDERSTAND WAS WHY JACK WAS ALLOWED TO STAY IN THAT POSITION FOR ALMOST SEVEN YEARS THIS IS NOT THE STORY OF A PLANT THAT WAS LOSING MONEY NO THE PLANT WAS PROFITABLE ALL DURING JACK'S TENURE RATHER THIS IS THE STORY OF A TYRANT A MIXTURE OF CAPTAIN QUEEG MOAMMAR GADHAFI AND SADDAM HUSSEIN AND SUPERIORS UNABLE TO ADMIT TO A MISTAKE AFTER A YEAR OF TRYING TO WORK UNDER JACK I THREW IN THE TOWEL AND TENDERED MY RESIGNATION TO THE VICE PRESIDENT OF OPERATIONS JACK'S BOSS I CANNOT PERFORM MY DUTIES UNDER THE PRESENT MANAGEMENT I WILL NOT STAND BY AND SEE ALL I BELIEVE IN AND HAVE PRACTICED OVER THE YEARS VIOLATED I WROTE I WAS NOT BEING NOBLE IT WAS SIMPLY THAT I COULD AFFORD TO RESIGN I DID NOT HAVE TO ENDURE JACK'S OPPRESSION IN MY LETTER I REVIEWED THE MAJOR PROBLEMS UNDER JACK'S RULE JACK HAD TEMPER TANTRUMS SHOUTING AND SCREAMING IN PRIVATE AND AT MEETINGS HE WAS EMOTIONALLY UNSTABLE ONE DAY HE WOULD THREATEN TO FIRE EVERYONE THE NEXT DAY WE WERE A GREAT TEAM JACK WAS PARANOID AT NIGHT HE'D SEARCH THROUGH WASTEBASKETS LOOKING FOR SECRET MEMOS IN TURN THE PEOPLE IN THE PLANT BECAME PARANOID THEY WERE AFRAID TO TALK TO EACH OTHER IN THE HALLWAYS FOR FEAR JACK WOULD SEE THEM AND ACCUSE THEM OF PLOTTING AGAINST HIM JACK OFFERED SIMPLISTIC SOLUTIONS TO COMPLEX PROBLEMS FIRE THE VENDOR OR THE BUYER AS A MEANS OF SOLVING PARTS SHORTAGES HE RULED BY EDICT THERE SHALL BE NO MACHINE BREAKDOWNS EFFICIENCY SHALL BE IMPROVED IMMEDIATELY EVERYONE WAS CONCERNED WITH JACK'S COMPETENCE HE TALKED ABOUT HOW THINGS SHOULD BE BUT WAS UNABLE TO UNDERSTAND THE REALITIES OF HOW THINGS WERE THE STAFF WAS UNABLE TO DISCUSS ANY MATTER WITH JACK THEREBY CUTTING OFF ALL DIALOGUE AT STAFF MEETINGS HIS MAJOR CONTRIBUTION WAS TAKING COPIOUS NOTES CAUSING EACH OF US TO MEASURE EACH WORD JACK CONTINUALLY THREATENED TO FIRE PEOPLE YET IN SEVEN YEARS HE NEVER FIRED ANYONE WHY HE WAS A BULLY WITH HIS EMPLOYEES AND A COWARD WITH CORPORATE STAFF FIRING SOMEONE WOULD REQUIRE INFORMING CORPORATE HEADQUARTERS JACK WAS TERRIFIED OF THE PEOPLE AT HEADQUARTERS JACK MOVED THROUGHOUT THE PLANT WITH A SYCOPHANTIC SIDEKICK A SHADOW WHEREVER JACK WENT DAVID WENT AND WHAT JACK MISSED DAVID CAUGHT WE WERE TIRED WE WERE TIRED OF HAVING SMALL MATTERS BROUGHT TO THE FRONT OFFICE AND MADE INTO FEDERAL CASES WE WERE TIRED OF BEING TOLD OF FAULTS AND FAILINGS OF OUR COWORKERS AND OURSELVES AS IF NOTHING GOOD WERE BEING ACCOMPLISHED WE WERE TIRED OF THE FEAR THAT GRIPPED US EVERY TIME SOMETHING WENT WRONG MOST OF ALL WE WERE TIRED OF THE ENDLESS SEARCHES FOR THE STRAWBERRIES JACK WAS A MAN WHOSE PEOPLEHANDLING ABILITIES WERE ABYSMAL WHOSE KNOWLEDGE OF THE OPERATION WAS SUPERFICIAL AND WHO WAS RUINING WHAT SHOULD HAVE BEEN A GOOD OPERATION I HAD NEVER BEFORE WORKED FOR A MANAGER WITH JACK'S STYLE VALUES OR BEHAVIOR MY LETTER OF RESIGNATION CREATED A STIR AT HEADQUARTERS JACK'S BOSS CALLED IMMEDIATELY HE AGREED TO COME DOWN AND MEET WITH ME AND OTHERS WHEN HE FINALLY ARRIVED A WEEK LATER HE MET WITH FOUR OF MY PEERS AND EACH OF THEM TOLD HIM SUBSTANTIALLY THE SAME STORY HIS FINAL RESPONSE AFTER LENGTHY DISCUSSION WAS HOW CAN I DO ANYTHING THE BOTTOM LINE LOOKS GOOD NEVER MIND THE HUMAN CARNAGE THE BOTTOM LINE LOOKED GOOD JACK HAS BEEN GONE ABOUT A MONTH SO WHETHER THE BOTTOM LINE WILL IMPROVE REMAINS TO BE SEEN BUT PEOPLE ARE PERFORMING THEIR JOBS ENTHUSIASTICALLY AN ATMOSPHERE OF FEAR HAS DISAPPEARED INTIMIDATION HAS EVAPORATED BEFORE EVERYONE WORKED TO JACK'S AGENDA NOW PEOPLE CAN PRESENT IDEAS AND VOICE THEIR OPINIONS PARTICULARLY IN MEETINGS EVEN THE HOURLY EMPLOYEES SENSE AN EXCITEMENT THAT HAD BEEN SUPPRESSED RESPECT FOR CORPORATE MANAGEMENT IS SLOWLY BEING RESTORED THERE ARE THREE TRAGEDIES INHERENT IN THIS TALE FIRST CAPABLE PEOPLE ARE RENDERED INEFFECTUAL BY MANAGERS LIKE JACK THEIR TALENTS IGNORED OR SCOFFED AT THIS TAKES A MIGHTY TOLL ON THE QUALITY OF THEIR PERFORMANCE AT WORK AND THE QUALITY OF THEIR LIVES IN GENERAL SECOND THERE IS A BREAKDOWN IN RESPECT FOR MANAGEMENT WHEN SOMEONE LIKE JACK IS ALLOWED TO STAY NO ONE CAN UNDERSTAND A MANAGEMENT THAT ALLOWS SUCH EMPLOYEE ABUSE TO CONTINUE FOR SO LONG EVEN NOW THERE ARE NEGATIVE RAMIFICATIONS IT WASN'T UNTIL JACK'S BOSS RETIRED AND A NEW VICE PRESIDENT REPLACED HIM THAT A CHANGE WAS MADE WHY DID IT TAKE A NEW MANAGER TO DO WHAT THE OLD MANAGER SHOULD HAVE DONE WHY WAS THE VICE PRESIDENT WHO HAD PROMOTED JACK TO PLANT MANAGER UNABLE TO ADMIT TO HIS MISTAKE OF COURSE HAD THE PLANT BEEN LOSING MONEY THE VICE PRESIDENT WOULD HAVE MOVED SWIFTLY THE THIRD TRAGEDY IS THAT THERE ARE OTHER JACKS OUT THERE AND NOTHING IS BEING DONE ABOUT THEM IT IS NOT THE JACKS OF THE WORLD WHO SHOULD BE INDICTED THEY ARE SICK PATHETIC MEN IT IS THEIR BOSSES WHO SHOULD BE INDICTED FOR ALLOWING ABUSIVE MANAGEMENT TO CONTINUE EVEN FOR A DAY MR GITTLER OF OBERLIN OHIO WRITES AND LECTURES ON MANAGEMENT ISSUES 9303010067 930301 GM LIFTS PRICES AS MUCH AS 22 ON HOT MODELS INCLUDED ARE ALL SATURNS AND SOME CADILLACS GEOS AND CHEVROLETS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IN A MOVE TO BOOST PROFITS ON STRONGERSELLING CARS SAID IT RAISED BASE PRICES BY AS MUCH AS 22 ON ALL SATURN CARS AND ON CERTAIN CADILLAC GEO AND CHEVROLET MODELS GM'S PRICE INCREASE FOLLOWS SIMILAR MOVES ANNOUNCED RECENTLY BY RIVAL JAPANESE AUTO MAKERS AND BY THE COMPANY'S DOMESTIC COMPETITORS FOR DETROIT'S BIG THREE THE PRICE INCREASES MARK A DEPARTURE FROM THE USUAL PRACTICE OF RAISING PRICES ONCE A YEAR IN OCTOBER WHEN NEW MODELS ARE UNVEILED BUT THE BIG THREE AND ESPECIALLY GM ARE STRUGGLING TO RETURN TO PROFITABILITY THE COMPANIES ARE BETTING THAT RECENT PRICE INCREASES BY JAPANESE COMPETITORS WHO ALSO ARE STRUGGLING WILL PROVIDE THEM SOME PRICING LEEWAY GM WAS MORE SELECTIVE THAN OTHER AUTO MAKERS IN DESIGNATING CERTAIN MODELS FOR PRICE INCREASES BECAUSE THE COMPANY REMAINS SADDLED WITH MANY SLOWSELLING CARS GM ISN'T IMPLEMENTING AN ACROSS THE BOARD PRICE INCREASE ON ITS PASSENGER CARS SAID MICHAEL LOSH GM'S VICE PRESIDENT AND GROUP EXECUTIVE FOR MARKETING SALES AND SERVICE GM HAS REDUCED PRICES ON A NUMBER OF PASSENGER CARS SINCE THE START OF THE 1993 MODEL YEAR OVER THE PAST FEW MONTHS GM HAS CUT PRICES ON ITS WEAKERSELLING MODELS SUCH AS THE BUICK LESABRE AND OLDSMOBILE ACHIEVA CUTLASS SUPREME CIERA AND 88 ROYALE THOSE CARS NOW CARRY LOWER STICKERS AND NO HAGGLING TO BETTER COMPETE WITH RIVALS EVEN THOUGH SATURN'S SALES HAVE BEEN BRISK SINCE THE MIDDLE OF LAST YEAR THE GM SUBSIDIARY HAS YET TO POST A PROFIT HOWEVER EARLIER THIS YEAR SATURN OFFICIALS VOWED TO BREAK EVEN ON OPERATIONS THIS YEAR AND BECOME PROFITABLE IN THE FOLLOWING YEARS THE ADDITION OF A THIRD SHIFT AT THE COMPANY'S TENNESSEE FACTORY IS A MAJOR STEP IN THAT DIRECTION BUT SATURN DECIDED IT NEEDED HIGHER PRICES AS WELL YOU SHOULDN'T BE IN BUSINESS IF YOU'RE NOT TRYING TO MAKE A PROFIT DONALD HUDLER SATURN'S VICE PRESIDENT OF SALES SERVICE AND MARKETING SAID FRIDAY WE'RE STILL ON TRACK TO BREAK EVEN WE'RE EARNING A REPUTATION IN THE MARKET AND WE'VE RAISED THE PRICE TO REFLECT OUR ACCEPTANCE SATURN RAISED THE PRICE OF ITS OPTIONS AND DESTINATION CHARGES IN ADDITION TO THE BASE MODEL PRICE FOR EXAMPLE THE BASE PRICE OF A SATURN SL1 INCREASED 2 OR 200 TO 10195 BUT THE SAME VEHICLE WITH ADDED DESTINATION CHARGE AUTOMATIC TRANSMISSION ANTILOCK BRAKES AND OPTIONS PACKAGE THAT INCLUDES POWER DOOR LOCKS AND WINDOWS POWER PASSENGERSIDE MIRROR AIR CONDITIONING AND CRUISE CONTROL IS NOW PRICED AT 13650 THAT'S 24 OR 320 HIGHER THAN THE OLD PRICE OF 13330 GM'S CADILLAC DIVISION SAID IT RAISED THE BASE PRICE OF ITS ELDORADO SEVILLE AND SEVILLE STS AS MUCH AS 18 BECAUSE OF HIGHER SUPPLIER COSTS ON CERTAIN COMPONENTS THE STEEPEST INCREASE WAS ON THE SEVILLE STS WHICH SPORTS THE NORTHSTAR ENGINE AND OTHER HIGHPERFORMANCE FEATURES ITS BASE PRICE ROSE 750 OR 18 TO 42740 A CADILLAC DIVISION SPOKESMAN SAID IT WAS ALSO RAISING DESTINATION CHARGES TO 625 FROM 600 CAR COMPANIES DON'T COUNT THE DESTINATION CHARGE IN A CAR'S BASE PRICE EVEN THOUGH ALL BUYERS MUST PAY IT AT GM'S CHEVROLET DIVISION THE BASE PRICE OF THE GEO PRIZM LSI WHICH WAS INTRODUCED LAST FALL JUMPED 115 TO 10745 UP 12 FROM 10630 THE BASE PRICE FOR ITS CHEVROLET SUBURBAN SPORTUTILITY VEHICLE ROSE 150 TO 19320 UP 08 A CHEVROLET SPOKESMAN CITED ECONOMIC CONDITIONS FOR THE PRICE INCREASES 9303010065 930301 BUSINESS BRIEF SUMITOMO RUBBER INDUSTRIES UNCONSOLIDATED PRETAX PROFIT ROSE 23 FOR YEAR NET FELL SUMITOMO RUBBER INDUSTRIES LTD SAID UNCONSOLIDATED PRETAX PROFIT ROSE 23 IN 1992 TO 1181 BILLION YEN 999 MILLION FROM 1155 BILLION YEN NET INCOME FELL 20 TO 575 BILLION YEN FROM 721 BILLION YEN SUMITOMO RUBBER PREDICTED UNCONSOLIDATED PRETAX PROFIT FOR THE CURRENT YEAR WILL FALL 69 TO 110 BILLION YEN NET WOULD DECLINE 44 TO 55 BILLION YEN AND REVENUE WOULD SHRINK 01 TO 2600 BILLION YEN IT PREDICTED A DIVIDEND OF 900 YEN A SHARE FOR THE FULL YEAR UNCHANGED FROM THE PRIOR YEAR THE COMPANY CITED SEVERE CONDITIONS FOR THE TIRE INDUSTRY AS THE ECONOMIC SLOWDOWN TAKES ITS TOLL ON VEHICLE PRODUCTION AND SALES NET SHRANK FROM THE PRIOR YEAR FOLLOWING EXTRAORDINARY INCOME OF 173 BILLION YEN IN 1991 WHEN NET INCOME SURGED 30 THE COMPANY REPORTED NO EXTRAORDINARY INCOME FOR 1992 UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES 9303010064 930301 BUSINESS BRIEF MEADOWBROOK REHABILITATION GROUP LAWSUIT AGAINST COMPANY FILED BY SOME SHAREHOLDERS MEADOWBROOK REHABILITATION GROUP INC EMERYVILLE CALIF SAID A LAWSUIT HAS BEEN FILED AGAINST IT ALLEGING IT FAILED TO PROPERLY DISCLOSE INFORMATION ABOUT ITS FINANCIAL CONDITION AND BUSINESS PROSPECTS THE SUIT IN FEDERAL COURT WAS FILED IN SAN FRANCISCO BY A GROUP OF INVESTORS WHO ALSO NAMED AS DEFENDANTS CERTAIN OFFICERS AND DIRECTORS OF MEADOWBROOK THE COMPANY SAID ACCORDING TO THE SUIT THE INVESTORS BOUGHT SHARES IN THE COMPANY FROM FEB 13 1992 THROUGH JAN 6 1993 AND SEEK AN UNSPECIFIED AMOUNT OF DAMAGES MEADOWBROOK SAID IT DENIES THE ALLEGATIONS AND INTENDS TO DEFEND ITSELF AGAINST THE CHARGES IN OVERTHECOUNTER TRADING FRIDAY MEADOWBROOK FELL 375 CENTS TO 350 9303010063 930301 TECHNOLOGY IRRADIATED FOOD SHOWS NEW SIGNS OF LIFE BY RICHARD GIBSON AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL IRRADIATION A POWERFUL BUT CONTROVERSIAL WEAPON AGAINST HARMFUL BACTERIA IS LIKELY TO BECOME A BIG GUN IN THE NATION'S FOODSAFETY ARSENAL THE US FOOD INDUSTRY HAS LARGELY SHUNNED THE TECHNOLOGY FEARING CONSUMERS WOULDN'T EAT ANYTHING ASSOCIATED WITH RADIATION IT HAS LONG BEEN USED HOWEVER TO STERILIZE MEALS FOR SPACEBOUND ASTRONAUTS AND TO CLEANSE IMPLANTABLE MEDICAL DEVICES THE RECENT FATALITIES FROM TAINTED HAMBURGER IN THE WEST ARE SPURRING GOVERNMENT REGULATORS AND MEATINDUSTRY OFFICIALS TO REEXAMINE IRRADIATION'S PATHOGENKILLING POTENTIAL IN RECENT DAYS THE AGRICULTURE DEPARTMENT ADVOCATED IMMEDIATE RESEARCH ON IRRADIATING GROUND BEEF MEATINDUSTRY REPRESENTATIVES SAY THE DEPARTMENT'S NEW SECRETARY MIKE ESPY URGED THEM IN A PRIVATE MEETING TO REDUCE THE PATHOGEN LEVELS IN RAW MEAT AND POULTRY IF THEY FAIL TO DO SO THEY SAY HE STRONGLY HINTED THE GOVERNMENT MIGHT CONSIDER MANDATING IRRADIATION MR ESPY'S OFFICE WON'T COMMENT ON THIS ACCOUNT BUT SAYS THE SECRETARY BELIEVES IRRADIATING BEEF MAY HAVE VERY IMPORTANT BENEFITS THE AMERICAN MEAT INSTITUTE'S FOUNDATION APPROVED SPENDING 200000 TO SEE WHETHER BOMBARDING HAMBURGER WITH RADIATION CAN KILL E COLI 0157H7 THE VIRULENT PATHOGEN BLAMED FOR THREE FASTFOOD FATALITIES IN WASHINGTON MEMBERS OF THE INSTITUTE A TRADE GROUP INCLUDE MEATPACKERS SUCH AS CONAGRA INC AND CARGILL INC AND PROCESSORS AMONG THEM KEYSTONE FOODS CORP A SUPPLIER TO MCDONALD'S CORP AND PHILIP MORRIS COS' OSCAR MAYER UNIT FOUNDATION MONEY ALSO WILL PROBE PUBLIC OPINION TO DETERMINE WHETHER CONSUMERS WOULD BUY IRRADIATED MEAT IF THEY WERE ASSURED IT WAS BACTERIAFREE UNIVERSITY OF GEORGIA RESEARCHERS SAY THEY RECENTLY FOUND THAT MANY PEOPLE WOULD PAY A PREMIUM FOR SAFE MEAT AND PRODUCE BEHIND 10FOOT CONCRETE WALLS AT IOWA STATE UNIVERSITY CARTS LADEN WITH PORK CHOPS HAVE ROLLED UNDER A LARGE GUNLIKE DEVICE THAT BLASTED THE MEAT WITH HIGHVOLTAGE ELECTRON BEAMS THE ARMY FOR ONE IS FINANCING THIS ALTERNATIVE IRRADIATIONSOURCE RESEARCH HOPING THAT IT MIGHT RESULT IN MORE SAVORY FIELD RATIONS IRRADIATION IS USED IN MANY COUNTRIES ESPECIALLY TO RETARD SPOILAGE WHERE REFRIGERATION IS LIMITED BUT MUCH OF THAT RADIATION IS FROM GAMMA RAYS EMITTED BY CESIUM137 ISOTOPES OR RADIOACTIVE COBALT LESS IS KNOWN ABOUT IRRADIATION FROM ELECTRON BEAMS AND XRAYS WHICH SCIENTISTS SAY MAY BE PREFERABLE IN SOME CASES A UTAH COMPANY IS PREPARING TO IRRADIATE ONEPOUND ROLLS OF GROUND CHICKEN BREAST TO SELL IN THE SOUTHEASTERN US WE HAVE STORES TELLING US THEY WOULD PREFER IT SAYS ARCHIE RAE MCFARLAND CHAIRMAN OF MCFARLAND'S FOODS INC SALT LAKE CITY GOVERNMENT RULES ALLOWING POULTRY IRRADIATION CAME OUT LAST YEAR AND FOOD AND DRUG ADMINISTRATION OFFICIALS SAY THEY WOULD WELCOME ADDITIONAL USES POULTRY AND RED MEAT ARE WHERE THE ADVANTAGES COME OUT STRONGEST SAYS GEORGE PAULI DIRECTOR OF THE FDA'S DIVISION OF PRODUCT POLICY THAT'S WHERE PUBLIC HEALTH IS INVOLVED DESPITE WARINESS ABOUT IRRADIATION AMONG CONSUMER GROUPS THERE'S A WIDE CONSENSUS IN WASHINGTON THAT IT'S SOMETHING WE NEED TO DO SAYS JAMES MARSDEN VICE PRESIDENT OF SCIENTIFIC AND TECHNICAL AFFAIRS AT THE MEAT INSTITUTE SOME MEAT INDUSTRY OFFICIALS ARE WORRIED ABOUT FUTURE OUTBREAKS OF FOODBORNE ILLNESSES THEY POINT TO GOVERNMENT ESTIMATES THAT MORE THAN SIX MILLION PEOPLE IN THE US BECOME ILL FROM FOOD EACH YEAR THOUGH THE CAUSE OF PERHAPS HALF OF THE CASES CAN'T BE IDENTIFIED THE CRITICAL COOKING PROCESS IS OUT OF THEIR HANDS THESE OFFICIALS NOTE BUT THEY SAY THAT IF PROCESSORS COULD SHIP STERILIZED MEAT TO STORES AND RESTAURANTS CHANCES OF OUTBREAKS OF FOODBORNE ILLNESSES WOULD SHRINK BEYOND IMMEDIATE CONCERNS ABOUT WHETHER BURGERS ARE BACTERIAFREE IS A PUBLICPOLICY DEBATE OVER HOW SAFE AMERICANS EXPECT THEIR FOOD TO BE WHEN THEY BUY IT AND WHAT RESPONSIBILITY THEY HAVE TO HANDLE AND COOK IT PROPERLY IF AS SOME ARGUE THE PUBLIC INCREASINGLY ASSUMES THAT IT IS THE DUTY OF GOVERNMENT AND INDUSTRY TO ENSURE SAFE FOOD THEN TECHNOLOGIES SUCH AS IRRADIATION ARE CERTAIN TO GATHER SUPPORT CONGRESSIONAL ADVOCATES ARE MAKING A RENEWED PUSH FOR IRRADIATION SEN SLADE GORTON A REPUBLICAN FROM WASHINGTON HAS URGED SECRETARY ESPY TO TAKE A CLOSER LOOK AT THE PROCESS MR GORTON WHOSE STATE CONTAINS THE HANFORD NUCLEAR WEAPONS COMPLEX EMPHASIZES THAT LEGITIMATE CONCERNS AND FEARS OF CONSUMERS MUST BE ADDRESSED BUT HE ARGUES THAT IRRADIATION DESERVES A FRESH APPRAISAL IN LIGHT OF THE TAINTEDHAMBURGER SCARE WHICH STARTED IN SEATTLE LATE LAST YEAR OPPONENTS OF IRRADIATION ARE DUBIOUS SOME SAY MORE STUDIES ARE NEEDED ON POTENTIAL HARMFUL EFFECTS INCLUDING THE LOSS OF VITAMINS AND THE SUBSTANCES CREATED WHEN MOLECULES SET ASTRAY BY IRRADIATION REBOND USING IRRADIATION TO FIGHT E COLI IS TRYING TO SOLVE A PROBLEM BY CREATING ADDITIONAL PROBLEMS SAYS CHRISTINE KLAEHN DIRECTOR OF THE NEW YORK PUBLIC INTEREST RESEARCH GROUP'S FOODIRRADIATION PROJECT CONSUMERS HAVEN'T WANTED IRRADIATED FOODS AND THEY STILL DON'T INDEED A FEW STATES INCLUDING MAINE AND NEW YORK BAN IRRADIATED FOOD IN NEW JERSEY WHERE A BAN RECENTLY EXPIRED IRRADIATION OPPONENTS WANT TO REVIVE IT EVEN SOME ADVOCATES WORRY THAT IRRADIATION WILL GIVE CONSUMERS A FALSE SENSE OF SECURITY MAKING THEM LESS CAREFUL ABOUT REFRIGERATING AND COOKING FOODS PROPERLY IT'S NOT A PANACEA SAYS DONALD W THAYER WHO RUNS THE AGRICULTURE DEPARTMENT'S FOODSAFETY RESEARCH CENTER IN PHILADELPHIA RESEARCHING THE EFFECTS OF IRRADIATION ON E COLI 1057H7 BUT HE TOLD A RECENT MEATINDUSTRY SEMINAR IN CHICAGO THAT THE ORGANISM IS EXTREMELY SENSITIVE TO GAMMA RADIATION AT IOWA STATE UNIVERSITY IN AMES DENNIS G OLSON DIRECTOR OF THE ELECTRONBEAM RESEARCH CENTER AWAITS THE INITIAL TEST RESULTS ON THE BEAM'S KILLING POWER THE PORK CHOPS IRRADIATED LAST MONTH WERE INOCULATED WITH SALMONELLA NORMALLY TRICHINA THE PARASITIC CAUSE OF TRICHINOSIS IS CONSIDERED PORK'S PRIMARY BACTERIAL DANGER BUT RECENTLY SOME REPORTS OF SALMONELLATAINTED PORK HAVE TURNED UP ONE DRAWBACK OF ELECTRON BEAMS THEY CAN ONLY PENETRATE ABOUT AN INCH XRAYS WHICH THE DEVICE ALSO CAN GENERATE GO DEEPER BUT TAKE LONGER THOUGH IRRADIATED MEAT PROBABLY IS AT LEAST A YEAR AWAY FROM SUPERMARKETS A FEW STORES HAVE SOLD IRRADIATED PRODUCE FOR MONTHS AND THEY REPORT BRISK SALES SHOPPERS ARE OVERWHELMINGLY IN FAVOR OF IT SAYS JIM CORRIGAN PRESIDENT OF CARROT TOP INC A SUBURBAN CHICAGO GROCER THAT SELLS STRAWBERRIES ORANGES GRAPEFRUIT TOMATOES MUSHROOMS AND ONIONS ZAPPED WITH RADIATION AT A PLANT IN FLORIDA BECAUSE THAT PROCESS ADDS AS MUCH AS TWO WEEKS TO SHELF LIFE THUS REDUCING SPOILAGE MR CORRIGAN SAYS HE'S ABLE TO SELL THE FOOD AT THE SAME PRICE AS NONIRRADIATED ITEMS IRRADIATION KILLS BACTERIA THAT CAUSE FRUITS AND VEGETABLES TO DISCOLOR AND TURN SOFT IF AND WHEN FEDERAL APPROVAL OF IRRADIATED MEAT COMES MR MARSDEN OF THE MEAT INSTITUTE SAYS SEVERAL SMALLER COMPANIES ARE LIKELY TO BEGIN SELLING IT PROBABLY OUTSIDE THEIR REGULAR MARKETS TO MINIMIZE ANY CONSUMER BACKLASH 9303010061 930301 HEARD ON THE STREET VARITY SHARES LOOK GOOD TO SOME INVESTORS WHO LIKE FIRM'S ANTILOCK BRAKE BUSINESS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL VARITY A HOT STOCK FOR THE PAST 12 MONTHS LOOKS AS IF IT'S ABOUT TO GET EVEN HOTTER THE ONCECOMATOSE FARM MACHINERY COMPANY IS EXPECTED TO WOW WALL STREET SOON BY REPORTING STRONGER RESULTS THAN SOME ANALYSTS EXPECT FOR THE FISCAL FOURTH QUARTER ENDED JAN 31 FORMERLY TORONTO'S MASSEY FERGUSON THE COMPANY HAS ACHIEVED QUITE A TURNAROUND IN THE PAST FEW YEARS TRANSFORMING ITSELF INTO A LEADING MANUFACTURER OF ANTILOCK BRAKE SYSTEMS CHANGING ITS NAME TO VARITY AND SLIPPING ACROSS THE BORDER TO BUFFALO NY AT FIRST GLANCE VARITY'S LINEUP OF AUTO PARTS DIESEL ENGINES AND TRACTORS DOESN'T SEEM LIKE THE WAVE OF THE FUTURE BUT LOOK AGAIN BULLISH INVESTORS SEE VARITY'S ANTILOCK BRAKE EQUIPMENT AS A PLAY ON THE GROWING CONSUMER DEMAND FOR AUTO SAFETY FEATURES VARITY'S STOCK ALREADY HAS CLIMBED TO 28 1/8 FROM 12 IN FEBRUARY 1992 PROPELLED BY BETTERTHANEXPECTED EARNINGS BULLS SAY THAT'S JUST THE BEGINNING I THINK THE STOCK CAN MOVE UP SIGNIFICANTLY FROM HERE SAYS ALBERT RUBACK PORTFOLIO MANAGER OF AN INDUSTRIALEQUIPMENT FUND AT FIDELITY INVESTMENTS IN BOS TON WHOSE MUTUAL FUNDS HOLD A COMBINED 13 STAKE MR RUBACK VALUES THE STOCK AT 41 1/2 BASED ON EXPECTED EARNINGS AT NEW YORK'S GABELLI & CO WHICH HAS BOOSTED ITS STAKE TO 126 FROM 116 LAST MAY ANALYST JOE SALERNO SAYS THE STOCK'S GAINS REFLECT A NUMBER OF POSITIVE DYNAMICS BEGINNING TO SURFACE THESE INCLUDE A RESTRUCTURING IN 1992 AND A LEADING MARKET POSITION IN THE ANTILOCK BRAKE SYSTEMS BUSINESS VARITY IS LED BY CHAIRMAN VICTOR RICE A 53YEAROLD ENGLISHMAN WHO ENGINEERED THE COMPANY'S METAMORPHOSIS WHAT DOES HE THINK OF ANALYSTS' ESTIMATES THAT THE COMPANY EARNED 15 CENTS TO 20 CENTS A SHARE IN THE LATEST QUARTER HE THINKS THE STREET WILL BE PLEASED WHEN THE COMPANY ACTUALLY REPORTS I DON'T EXPECT OPERATING EARNINGS WILL DISAPPOINT THE ANALYSTS THEY WILL NOT BE UNHAPPY SAYS MR RICE WHO HAS SLASHED EMPLOYMENT TO 17000 FROM 56000 SINCE HE BECAME CHAIRMAN IN 1980 A STRONG QUARTER WOULD CONTINUE VARITY'S EARNINGS STREAK IN THE FIRST NINE MONTHS OF THE JUSTENDED FISCAL YEAR VARITY EARNED 22 MILLION OR 33 CENTS A SHARE THAT COMPARES WITH A DISMAL PRIOR YEAR WHEN THE COMPANY'S ANNUAL LOSS WAS 178 MILLION OR 787 A SHARE AFTER A 110 MILLION RESTRUCTURING CHARGE FOR PLANT CLOSINGS LAYOFFS AND ASSET SALES WALL STREET'S CURRENTYEAR PROFIT ESTIMATES VARY FROM 1 TO 145 A SHARE THERE'S NO QUESTION VARITY'S FINANCIAL HEALTH IS VASTLY IMPROVED LAST YEAR'S OVERHAUL OF THE BALANCE SHEET SLASHED LONGTERM DEBT FATTENED BY THE 1989 ACQUISITION OF KELSEYHAYES AUTO PARTS FROM FRUEHAUF CORP TO 316 MILLION FROM 796 MILLION VARITY HAS CUT LONGTERM DEBT TO 36 OF TOTAL CAPITAL FROM 62 WITH CURRENTYEAR INTEREST EXPENSE PROJECTED TO FALL TO 80 MILLION FROM 140 MILLION THE COMPANY SOLD 163 MILLION IN ASSETS LAST YEAR TO RAISE MONEY FOR DEBT REDUCTION IT ALSO SOLD 5750000 COMMON SHARES AT 22 AND IT SOLD 504 OF ITS ALUMINUM AND STEEL WHEEL BUSINESS IN AN INITIAL PUBLIC OFFERING OF HAYES WHEELS INTERNATIONAL THE SHORTTERM RESULT OF ALL THE RESTRUCTURING FISCAL THIRDQUARTER OPERATING EARNINGS WERE TRIPLE THOSE OF A YEAR AGO VARITY AND ITS GROUPIES BELIEVE ANTILOCK BRAKES WILL HELP DRIVE THE COMPANY'S EARNINGS TO 10 TIMES THEIR CURRENT LEVEL BY 1996 AND PROPEL THE STOCK TO PERHAPS 45 ANTILOCK BRAKES PART OF VARITY'S 14 BILLIONINSALES KELSEYHAYES UNIT CONTRIBUTED 430 MILLION OF SALES IN THE JUSTENDED YEAR THE LATTER SALES FIGURE COULD DOUBLE BY 1997 SAYS MR RICE ADDING THAT'S NOT A FORECAST IT'S BASED ON CONTRACTS WE ALREADY HAVE VARITY HAS HAD SOME SUCCESS IN WINNING LARGE ANTILOCK BRAKE PRODUCTION CONTRACTS INCLUDING A 100 MILLION CONTRACT WITH OPEL A GENERAL MOTORS UNIT AND A 75 MILLION CONTRACT WITH AN UNDISCLOSED NORTH AMERICAN AUTO MAKER VARITY FACES SIGNIFICANT ANTILOCK BRAKE COMPETITION FROM GERMANY'S ROBERT BOSCH GM'S DELCO AND ITT'S TEVES UNIT BUT VARITY APPEARS TO HAVE A COMFORTABLE LEAD AND IN 1996 EXPECTS TO OUTPRODUCE SECONDPLACE DELCO BY TWO MILLION UNITS AND THAT'S JUST IN THE US VARITY IS BUILDING A PLANT IN EUROPE AND MAY BUILD ANOTHER ONE SOON IT IS ALSO CONSIDERING TWO MORE IN THE US AND POSSIBLY A THIRD IN SOUTHEAST ASIA WITHIN FIVE YEARS 9303010060 930301 CORPORATE FOCUS MAGNETEK SEES OPPORTUNITY IN ITS ELECTRONIC BALLASTS COMPANY'S PITCH FOR THE POWER UNITS THAT CUT ENERGY USAGE IS SPOTLIGHTED BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MAGNETEK INC PRESIDENT FRANK PERNA JR BEAMS AS HE POINTS TO AN INSIGNIFICANTLOOKING BLACK METAL BOX TUCKED INSIDE ONE OF THE FLUORESCENT LIGHTING FIXTURES HERE IN THE ELECTRICALEQUIPMENT COMPANY'S ELEGANT HEADQUARTERS BUILDING THE LITTLE POWER UNITS THAT FEED ELECTRICITY TO FLUORESCENT TUBES DEVICES CALLED BALLASTS ARE AN OASIS OF OPPORTUNITY FOR MAGNETEK MR PERNA SAYS ELECTRONIC BALLASTS CUT ENERGY USAGE IN FLUORESCENT LIGHTING BY AS MUCH AS 40 COMPARED WITH CHEAPER MAGNETICCOIL MODELS AS A MARKET ELECTRONIC BALLASTS ARE GROWING FROM A CURRENT BASE OF ABOUT 1 OF ALL FLUORESCENT LIGHTING SYSTEMS UTILITIES AND THE ENERGY DEPARTMENT HAVE TARGETED LIGHTING AS AN OPPORTUNITY TO SOLVE SOME OF OUR NATION'S ENERGY SUPPLY PROBLEMS MR PERNA SAYS BY SOME ESTIMATES LIGHTING IN GENERAL CONSUMES UP TO A QUARTER OF THE NATION'S ELECTRICITY NOW AFTER YEARS OF PREACHING TO THE UNCONVERTED HIS PITCH FOR ELECTRONIC BALLASTS FINALLY SEEMS TO BE GETTING THROUGH TO UTILITIES AND CONSUMERS SUCCESS THAT IS SOMETIMES MEASURED IN SPURTS OF BUSINESS SURPRISING EVEN TO THE MAGNETEK CHIEF EXECUTIVE DECEMBER ORDERS FOR MAGNETEK'S ELECTRONIC BALLASTS FOR EXAMPLE TOPPED 200 MILLION INCLUDING ONE JUMBO CONTRACT ACTUAL ELECTRONICBALLAST SALES NOT YET REFLECTING THE DECEMBER ORDERING BINGE ARE EXPECTED TO MORE THAN DOUBLE FROM LAST YEAR'S 71 MILLION AFTER DOUBLING ITS MANUFACTURING CAPACITY FOR THE DEVICES IN THE SECOND HALF LAST YEAR MAGNETEK HOPES TO AT LEAST DOUBLE IT AGAIN BY JULY LAST MONTH IT BEGAN MAKING THE BALLASTS IN HUNTSVILLE ALA AT A SITE VACATED BY A FORMER MILITARY CONTRACTOR THE STRENGTH OF MAGNETEK'S BALLAST BUSINESS HAS TENDED TO OVERSHADOW WEAKNESSES IN MANY OTHER OPERATIONS THE COMPANY IS STRUGGLING TO DIGEST A NUMBER OF EUROPEAN ACQUISITIONS AND IS FIGHTING EFFECTS OF THE US COMMERCIAL CONSTRUCTION DOWNTURN ON MOTORS TRANSFORMERS AND STANDARD LIGHTING PRODUCTS ITS UTILITY RENOVATION SERVICES AND EQUIPMENT SALES TOO REFLECT THE SLUGGISH ECONOMY BUT THE BALLAST BOOM IN ILLUMINATING A CHEERIER CORNER OF THE CORPORATION HAS HELPED PUSH MAGNETEK STOCK TO NEW HIGHS SINCE GOING PUBLIC AT 12 A SHARE IN 1989 ITS PRICE NEVER CLIMBED ABOVE THE MIDTEENS UNTIL IT DOUBLED IN RECENT MONTHS TO A HIGH OF 25125 EARLY LAST MONTH TO SOME OF MAGNETEK'S FOUNDING INVESTORS IT LOOKS LIKE A GOOD TIME TO SELL LAST THURSDAY MAGNETEK FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION ON BEHALF OF THREE PARTNERSHIPS TO SELL THEIR COMBINED 75 MILLION SHARES ABOUT A 29 MAGNETEK STAKE THE HOLDERS ARE FORMER EMPLOYEES OF DREXEL BURNHAM LAMBERT INC INCLUDING THE DEFUNCT INVESTMENT FIRM'S CONVICTED JUNKBOND CHIEF MICHAEL MILKEN THE ANNOUNCEMENT BARELY DIMMED INVESTORS' APPETITE FOR THE STOCK PERHAPS BECAUSE THE SALE LIFTS A BURDEN THAT HAS WEIGHED ON MAGNETEK SINCE IT WENT PUBLIC ANALYSTS SAID THE SHARES CLOSED FRIDAY AT 23 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE BROAD APPEAL OF MAGNETEK NOW IS IN ITS ENERGYENGINEERED PRODUCTS MAINLY ELECTRONIC BALLASTS BUT ALSO HIGHEFFICIENCY ELECTRIC MOTORS AND DRIVES THAT ACCOUNT FOR ABOUT A QUARTER OF SALES IT IS MOSTLY A DOMESTIC BUSINESS AND LIKELY TO REMAIN SO FOR A WHILE MR PERNA PREDICTS LAST OCTOBER'S FEDERAL ENERGY POLICY ACT COULD PROPEL ENERGYSAVING MOTORS INTO THE FOREFRONT OF THE NEXT WAVE OF CONSERVATION AND ELECTRONICBALLAST ACTIVITY ALREADY REFLECTS SOME POWERFUL FINANCIAL INCENTIVES AT ROUGHLY 18 TO 20 EACH MAGNETEK'S PRODUCTS COST NEARLY TWICE WHAT ITS STANDARD BALLASTS COST BUT MANY UTILITIES REIMBURSE BUILDINGS UP TO THEIR FULL COST OF RETROFITTING WITH NEW ENERGYSAVING EQUIPMENT LIGHTING PROGRAMS ARE AT THE HEART OF OUR ENERGY CONSERVATION PROGRAM SAYS JOHN T DILLON ASSISTANT VICE PRESIDENT FOR ENERGY SERVICES AT NEW YORK'S CONSOLIDATED EDISON CO SAN DIEGO'S SYMPHONY TOWERS WHICH REPLACED ITS LIGHTING IN OCTOBER EXPECTS TO SAVE 143000 A YEAR ON ELECTRICAL COSTS SINCE SAN DIEGO GAS & ELECTRIC CO CHIPPED IN 202500 TOWARD THE PROJECT'S 367000 COST THE BUILDING COULD RECOUP THE INVESTMENT IN JUST OVER A YEAR WE CONDUCTED AN ENERGY AUDIT AND DISCOVERED THAT 45 OF OUR UTILITY USAGE WENT TO THE HEAVY LIGHTING LOAD IN THE BUILDING SAYS THE BUILDING'S CHIEF ENGINEER FRANK MITZEL HE SPENT FOUR MONTHS ANALYZING DIFFERENT PRODUCTS BEFORE DEVISING A PLAN THAT INCLUDED 7500 FIXTURES WITH MAGNETEK ELECTRONIC BALLASTS WHILE THAT BUSINESS IS LARGELY HOMEGROWN MAGNETEK'S OPERATIONS WILL HAVE 300 MILLION IN FOREIGN SALES ACROSS ITS PRODUCT LINES THIS FISCAL YEAR DELAYS IN INTEGRATING EUROPEAN OPERATIONS HAVEN'T SHAKEN MR PERNA'S DETERMINATION TO POSITION THE COMPANY GLOBALLY WE HAVE TO BE THE LOWESTCOST HIGHESTQUALITY PRODUCER HE SAYS MAGNETEK'S ANNUAL REVENUE WAS ONLY 195 MILLION WHEN THE PREDECESSOR OPERATIONS WERE ACQUIRED IN 1984 FROM LITTON INDUSTRIES INC THE DEAL SPAWNING MAGNETEK WAS BACKED BY DREXEL AND LED BY MAGNETEK CHAIRMAN ANDREW G GALEF WHO ALSO HEADS PRIVATE INVESTMENT CONCERN SPECTRUM GROUP MR PERNA A 54YEAROLD ELECTRICAL ENGINEER WHOSE RESUME INCLUDES 17 YEARS AT GENERAL MOTORS CORP WAS RECRUITED TO RUN MAGNETEK MAGNETEK'S GROWTH HAS COME LARGELY THROUGH ACQUISITIONS MANY OF THEM ARRANGED BY SPECTRUM IN FEBRUARY 1986 MAGNETEK PURCHASED UNIVERSAL MANUFACTURING CORP OVERNIGHT TRANSFORMING MAGNETEK INTO ONE OF THE WORLD'S LEADING BALLAST MANUFACTURERS MAGNETEK AND PHILIPS EACH HAVE ABOUT 40 OF THE MARKET ESTIMATES MORGAN STANLEY & CO ANALYST JENNIFER POKRZYWINSKI THE JUNE 1989 PUBLIC OFFERING ENCOUNTERED SOME SKEPTICS WHO DERIDED THE COMPANY AS A HODGEPODGE OF CASTOFF OPERATIONS THE OVERHANGING DREXEL STAKE SCARED OFF MANY INVESTORS NOW THOUGH THE BALLAST BOOM HAS SOME INVESTORS REEXAMINING THE COMPANY WHAT HAS CHANGED ISN'T OPERATIONS SO MUCH AS PERCEPTIONS ABOUT CERTAIN LEGACIES FROM THE PAST SUGGESTS MARTIN SANKEY AN ANALYST AT FIRST BOSTON CORP INVESTORS ARE LESS WARY OF HIGHLY LEVERAGED COMPANIES AND MAGNETEK ALSO APPEARS NEAR TO RESOLVING LITIGATION RELATED TO ITS UNIVERSAL ACQUISITION AND TO ITS PENSION PLAN HE SAYS MAGNETEK'S BALLAST PRODUCTS THOUGH FACE INCREASING COMPETITION FROM SCORES OF US AND FOREIGN COMPANIES CLAIMING THEIR BALLASTS ARE MORE ENERGYEFFICIENT MANY ARE NEW PLAYERS INCLUDING MOTOROLA INC AND A HALF DOZEN KOREAN COMPANIES SAYS FAZEL QUAZI PRESIDENT OF ETTA INDUSTRIES INC A BOULDER COLO BALLAST MAKER THE CHALLENGE DOESN'T PHASE MR PERNA TO MAINTAIN MARKET SHARE MAGNETEK HAS RESISTED THE TEMPTATION TO BOOST BALLAST PRICES AND IS SCURRYING TO ADD MANUFACTURING CAPACITY MY VISION IS TO BE A 5 BILLION COMPANY BY THE END OF THE DECADE MR PERNA SAYS 9303010059 930301 BUSINESS BRIEF KOMATSU LTD CONCERN LOWERS FORECASTS FOR PROFIT AND SALES FOR YEAR KOMATSU LTD A LEADING JAPANESE MAKER OF CONSTRUCTION MACHINERY FRIDAY REVISED DOWNWARD ITS FORECASTS FOR PROFIT AND SALES FOR THIS FISCAL YEAR AS DEMAND FOR CONSTRUCTION MACHINES HAS FLAGGED BOTH AT HOME AND ABROAD THE COMPANY CITED THE SHARP FALL IN PRIVATE OUTLAYS ON PLANT AND EQUIPMENT IN JAPAN FOR TAKING A BIG TOLL ON SALES OF SMALL AND MIDSIZED INDUSTRIAL MACHINERY CONSOLIDATED OR GROUP NET INCOME IS NOW SEEN BY THE FIRM AT 3 BILLION YEN 254 MILLION DOWN 57 FROM THE 7 BILLIONYEN FORECAST IN NOVEMBER AND OFF 72 FROM THE 1090 BILLION YEN RESULT LAST FISCAL YEAR WHICH ENDED MARCH 31 THE COMPANY DOESN'T ISSUE A PREDICTION FOR GROUP PRETAX PROFIT THE COMPANY SEES GROUP SALES AT 870 BILLION YEN DOWN 33 FROM THE 900 BILLIONYEN EARLIER PREDICTION AND DOWN 54 FROM 91975 BILLION YEN LAST YEAR ON AN UNCONSOLIDATED OR PARENTONLY BASIS KOMATSU SAID IT NOW FORECASTS PRETAX PROFIT OF 2200 BILLION YEN DOWN 19 FROM THE NOVEMBER 27 BILLIONYEN PREDICTION THE LATEST NUMBER IS OFF 27 FROM 3007 BILLION YEN LAST FISCAL YEAR 9303010058 930301 INTERNATIONAL SIEMENS INSISTS IT'S NO SLUMBERING GIANT GERMAN ELECTRICALGOODS FIRM AIMS TO STEP CAUTIOUSLY BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH FROM TIME TO TIME GERMAN NEWSPAPER CARTOONISTS LIKE TO LAMPOON THE COUNTRY'S BIGGEST ELECTRICAL PRODUCTS COMPANY SIEMENS AG AS A SLEEPY GIANT LOLLING IDLY ON A RIVER BANK I LOVE THAT PICTURE CHUCKLES HEINRICH VON PIERER SIEMENS'S CHIEF EXECUTIVE OFFICER IT'S WRONG BUT I LOVE IT TRYING TO CONVINCE PEOPLE THAT SIEMENS IS INDEED WIDE AWAKE AND KICKING HAS BEEN ONE OF MR VON PIERER'S MAIN TASKS SINCE THE 52YEAROLD LAWYER BECAME SIEMENS'S PRESIDENT AND CHIEF LAST OCTOBER BUT WITH THE GERMAN ECONOMY AND SIEMENS PROFITS SINKING INTO RECESSION THIS YEAR SOME INVESTORS AND ANALYSTS QUESTION WHETHER THE WORLD'S FIFTHBIGGEST ELECTRONICS AND ELECTRICAL PRODUCTS COMPANY IS ASLEEP AT THE SWITCH THOUGH SIEMENS HAS ANNOUNCED COSTCUTTING MEASURES INCLUDING 13000 JOB CUTS THEY WONDER WHETHER IT'S ENOUGH I'D DESCRIBE THOSE CUTS AS NECESSARY BUT INSUFFICIENT SAYS EVAN MILLER A LONDONBASED ANALYST WITH LEHMAN BROTHERS SECURITIES AT A TIME OF WRENCHING CUTS AT SUCH COMPETITORS AS MATSUSHITA ELECTRIC INDUSTRIAL CORP AND INTERNATIONAL BUSINESS MACHINES CORP SIEMENS HAS BEEN VERY TARDY HE SAYS RESPONDING TO SUCH CRITICISMS IN A FOURHOUR INTERVIEW THE SIEMENS CHIEF INDICATED THAT FURTHER COSTCUTTING MEASURES MAY BE NEEDED BUT THEY WILL BE DONE IN TRUE GERMAN FASHION CAREFULLY AND CORRECTLY WITHOUT HASTY LAYOFFS OR FIRE SALES OF SICK SUBSIDIARIES I THINK WE DO THE UTMOST WE COULD DO TO RAISE PROFITS AND WE TAKE IT VERY SERIOUSLY MR VON PIERER SAYS BUT HE ADDS I DON'T WANT TO ACT UNDER PRESSURE I WANT TO SET THE PACE I WANT TO DECIDE SPECIFICALLY HE SAYS HE'S INTERESTED IN FINDING ONE OR MORE STRATEGIC PARTNERS FOR SIEMENS NIXDORF INFORMATIONSSYSTEME AG AN UNPROFITABLE SIEMENS DIVISION THAT IS ALSO EUROPE'S BIGGEST EUROPEAN COMPUTER MAKER TO CUT COSTS AND REASSURE CUSTOMERS ABOUT SNI'S LONGEVITY HE SAYS HE INTENDS TO CONSIDER JOINTLY DEVELOPING AND MANUFACTURING A BROAD RANGE OF COMPUTER HARDWARE WITH ONE OR MORE COMPETITORS IBM HAS ALREADY BEEN RULED OUT SUCH AN ALLIANCE WOULD BE UNLIKELY TO CLEAR GERMAN ANTITRUST AUTHORITIES BUT WHEN ASKED ABOUT POSSIBLE JAPANESE PARTNERS MR VON PIERER THROWS HIS HANDS IN THE AIR EVERYTHING IS POSSIBLE THIS IS THE FIRST TIME A SIEMENS BOARD MEMBER HAS PUBLICLY ADVERTISED INTEREST IN SUCH AN ALLIANCE THOUGH PREVIOUS SIEMENS HINTS ON THE SUBJECT HAVE DRAWN POTENTIAL SUITORS TO HIS MUNICH OFFICE I FEEL LIKE A BRIDE WITH TOO MANY SUITORS MR VON PIERER SAYS HE SAID IT WILL TAKE TIME TO DECIDE ON ANY SUCH DEAL IF IT HAPPENS AND THAT COMPUTERS WILL REMAIN A KEY SIEMENS BUSINESS IF SUCH A DEAL WERE CONCLUDED SIEMENS WOULD BE THE LAST OF THE BIG FOUR EUROPEAN COMPUTER MAKERS SIEMENS ITALY'S ING C OLIVETTI & CO FRANCE'S CIE DES MACHINES BULL AND BRITAIN'S ICL PLC TO GIVE UP ON GOING IT ALONE AND TAKE ON A BIG JAPANESE OR US PARTNER TO WEATHER THE GERMAN RECESSION SNI MAY NEED TO CUT MORE JOBS THAN THE 9000 ALREADY SLATED THE UNPROFITABLE SEMICONDUCTOR DIVISION MEANWHILE IS DOING BETTER THAN EXPECTED AND MAY HALVE ITS LOSSES WHICH EXCEEDED 500 MILLION MARKS 306 MILLION IN THE FISCAL YEAR ENDED SEPT 30 SOMETIME THIS YEAR OR NEXT HE ADDS THE SIEMENS BOARD WILL TACKLE ITS THORNIEST SEMICONDUCTOR PROBLEM WHETHER TO RETRENCH FURTHER IN COMPUTER MEMORYCHIP PRODUCTION AFTER A DECADE OF GROWTH BY ACQUISITIONS I DON'T SEE ANY STRATEGIC NEED TO MAKE ANY FURTHER BIG ACQUISITIONS HE SAYS SIEMENS LEARNED COSTLY LESSONS IN ITS PURCHASES OF GERMAN COMPUTER RIVAL NIXDORF AND US OFFICE SWITCHBOARD MAKER ROLM CORP STILL HE SAYS HE'S OPEN TO ANY GOOD BUYING OPPORTUNITIES THAT COME HIS WAY ONE SUCH IS ITALTEL SPA ITALY'S BIGGEST TELEPHONE EQUIPMENT MAKER HE SAYS SIEMENS HAS SUBMITTED A BID TO BUY ITALTEL SHARES AS PART OF A STATE AUCTION IT'S TAKING LONGER THAN EXPECTED TO MAKE A PROFIT IN EASTERN GERMANY SIEMENS LOST A BIT MORE THAN 100 MILLION MARKS IN ITS LAST FISCAL YEAR ON INVESTMENTS OF MORE THAN A BILLION MARKS HE SAYS NEVERTHELESS HE SAYS SIEMENS REMAINS COMMITTED TO THE AREA AND REGARDS THE LOSSES AS PART OF THE ENTRY PRICE WHATEVER THE CARPING FROM OUTSIDERS INSIDERS AT SIEMENS SAY THEY'VE DETECTED A NEW TOUGHER TONE IN MANAGEMENT UNDER MR VON PIERER BOTH DURING HIS YEAR AS DEPUTY CHAIRMAN AND ANOINTED HEIR TO LONGTIME SIEMENS BOSS KARLHEINZ KASKE AND DURING HIS FIVE MONTHS IN THE TOP JOB CERTAINLY THE JOB CUTS ANNOUNCED LAST MONTH AT LEAST 13000 OR 3 THIS FISCAL YEAR FROM A WORK FORCE OF 413000 ARE AMONG THE DEEPEST IN SIEMENS'S HISTORY AS A LAWYER IN AN ENGINEER'S COMPANY THE SIEMENS CHIEF HOLDS A DOCTORATE IN LAW MEANING MOST GERMANS ADDRESS HIM AS DR VON PIERER HE ALSO HAS A COMPETITIVE STREAK ESPECIALLY ON THE TENNIS COURT A LOCAL GERMAN TENNIS CHAMPION IN HIS YOUTH HE STILL PLAYS IN THE NORTHERN BAVARIAN TENNIS LEAGUE NEAR HIS HOME TOWN OF ERLANGEN WHEN I ENTER A TENNIS COURT I FORGET ALL FRIENDSHIP HE SAYS I BELIEVE IT'S BETTER TO LOSE A CONTRACT THAN TO LOSE A TENNIS MATCH HE'LL NEED SUCH COMBATIVENESS TO KICKSTART SIEMENS BY ANY MEASURE THE COMPANY IS A TECHNOLOGY COLOSSUS ONE OF JUST A HANDFUL OF EUROPEAN HIGHTECH COMPANIES THAT EXECUTIVES OF IBM AMERICAN TELEPHONE & TELEGRAPH CO GENERAL ELECTRIC CO AND OTHER US MULTINATIONALS HAVE SAID THEY TAKE SERIOUSLY AS A GLOBAL COMPETITOR LIKE GE IN THE US OR MATSUSHITA IN JAPAN SIEMENS MAKES A MINDBOGGLING RANGE OF THINGS ELECTRICAL FROM NUCLEAR POWER PLANTS TO COMPUTER CHIPS THOUGH ITS NET INCOME HAS RISEN EVERY YEAR SINCE 1986 UP 11 LAST FISCAL YEAR TO 199 BILLION MARKS ON REVENUE OF 785 BILLION MARKS ITS PERSHARE EARNINGS HAVE BEEN STUCK BETWEEN 42 MARKS AND 453 MARKS FOR THE PAST FOUR YEARS BECAUSE OF REGULAR SHARE ISSUES LIKEWISE ITS PROFIT MARGINS HAVE HELD ROCKSTEADY AT ABOUT 42 BEFORE TAXES AND 25 AFTER TAXES WHILE THAT'S NEAR THE GLOBAL INDUSTRY AVERAGE SOME COMPETITORS CLOSE TO HOME DO BETTER SUCH AS FRANCE'S ALCATELALSTHOM SA WITH AVERAGE PRETAX PROFIT MARGINS OF MORE THAN 6 GIVEN SIEMENS'S TECHNOLOGICAL STRENGTHS IF THEY SHAPED THEMSELVES UP AND MOVED FORWARD THEY WOULD CREATE MAJOR WAVES ON BOTH SIDES OF THE ATLANTIC SAYS SECURITIES ANALYST JOHN CHESSHER OF PARIBAS CAPITAL MARKETS ADDED TO SUCH LONGTERM CONCERNS HAVE BEEN MR VON PIERER'S RECENT WARNINGS REPEATED IN THE INTERVIEW THAT THE GERMAN RECESSION MEANS IT WILL TAKE A LOT OF EFFORT FOR SIEMENS THIS FISCAL YEAR EVEN TO MATCH LAST YEAR'S PROFITS HEAVILY DEPENDENT ON THE FORTUNES OF ITS HOME MARKET SIEMENS LAST FISCAL YEAR DERIVED 46 OF ITS REVENUE IN GERMANY BUT THE SIEMENS EXECUTIVE REJECTS ANALYSTS' SUGGESTIONS THAT THE WAY OUT OF RECESSIONRELATED PROBLEMS IS TO ORDER SWEEPING LAYOFFS OR TO JETTISON THE COMPUTER AND SEMICONDUCTOR DIVISIONS IT'S EASY TO PLEASE THE STOCK MARKET BY SLASHING JOBS USSTYLE BUT IF HE DID THAT IN GERMANY WHERE LAYOFFS ARE CONTROVERSIAL AND COSTLY HE SAYS I WOULD LOSE ALL EFFECTIVENESS AS CHIEF EXECUTIVE AND IF HE SIMPLY SOLD SNI OR SEMICONDUCTORS HE SAYS PEOPLE WILL SAY HOW CAN YOU GIVE SOMEBODY ELSE YOUR PROBLEM CHILDREN' IF WE WANT TO SELL SOMETHING WE MUST FIX IT FIRST 9303010057 930301 BUSINESS BRIEF BETHLEHEM STEEL CORP BRIEF EXTENSION' IS SOUGHT IN DEAL WITH ISPAT MEXICANA BETHLEHEM STEEL CORP SAID ISPAT MEXICANA HAS ASKED FOR A BRIEF EXTENSION ON ITS LETTER OF INTENT TO BUY BETHLEHEM'S SHUTTERED STEEL BAR AND ROD OPERATIONS ALTHOUGH NO DEADLINE HAD BEEN SET FOR THE ACQUISITION THE TWO COMPANIES HAD INFORMALLY AGREED TO COMPLETE IT BY THE END OF FEBRUARY THE DEAL WAS APPARENTLY SCUTTLED LAST WEEK WHEN ISPAT AND THE UNIT'S WORKERS FAILED TO NEGOTIATE A LABOR CONTRACT WHICH WAS A CONDITION OF THE PURCHASE ON FRIDAY BETHLEHEM IN BETHLEHEM PA ISSUED A STATEMENT ASSERTING THAT A LETTER OF INTENT SALE AGREEMENT REMAINS IN EFFECT BETWEEN BETHLEHEM AND ISPAT A SPOKESMAN FOR THE UNITED STEEL WORKERS WHICH REPRESENTS THE WORKERS AT THE SHUTTERED UNIT SAID ISPAT IS A DEAD DEAL BUT IF THEY CALLED US WE'D TALK NEGOTIATIONS BROKE OFF FEB 19 ISPAT MEXICANA IS A UNIT OF ISPAT GROUP OF JAKARTA INDONESIA 9303010056 930301 BUSINESS BRIEF DAINIPPON INK & CHEMICALS INC JAPAN CONCERN CUTS FORECAST FOR CONSOLIDATED EARNINGS DAINIPPON INK & CHEMICALS INC SAID IT HAS REVISED DOWNWARD ITS CONSOLIDATED EARNINGS FORECAST FOR THE YEAR ENDING MARCH 31 1993 FOR THE YEAR THE COMPANY NOW PREDICTS A PRETAX LOSS AMOUNTING TO THREE BILLION 255 MILLION YEN THAT COMPARES WITH THE PRIOR PREDICTION ISSUED LAST JUNE FOR A PRETAX PROFIT OF NINE BILLION YEN IT WOULD ALSO REPRESENT A NEARTRIPLING OF THE 103 BILLION YEN PRETAX LOSS REALIZED LAST YEAR DAINIPPON INK & CHEMICALS ALSO SAID IT NOW EXPECTS A 390 BILLION YEN NET LOSS SWINGING FROM THE EARLIER PREDICTION FOR A FOUR BILLION YEN NET PROFIT AND FROM LAST YEAR'S 233 BILLION YEN NET PROFIT SALES ARE NOW SEEN AT 892 BILLION YEN 66 BELOW THE PRIOR FORECAST OF 955 BILLION YEN AND 27 BELOW LAST YEAR'S 91687 BILLION YEN PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES NET INCOME REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND PAYMENTS OF TAXES UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES 9303010055 930301 CREDIT MARKETS BOND RALLY COULD HAVE MORE STEAM FURTHER RATE EASING SEEN TIED TO SUCCESS OF CLINTON PROPOSAL BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVEN AFTER A PLUNGE IN INTERMEDIATE AND LONGTERM INTEREST RATES THAT SURPRISED MANY ON AND OFF WALL STREET A NUMBER OF ANALYSTS SAY THAT RATES COULD DROP EVEN FURTHER THOUGH NOT MUCH THERE IS STILL A SHOT AT LOWER INTEREST RATES SAYS ALLEN SINAI HEAD OF BOSTON CO ECONOMIC ADVISORS ESPECIALLY IF CONGRESS TURNS TOWARD MORE SPENDING REDUCTIONS ACCORDING TO MR SINAI LONGTERM BOND YIELDS COULD DROP TO 65 IF SUBSTANTIVE DEFICIT REDUCTION RESULTS FROM THE ECONOMIC PACKAGE PROPOSED BY PRESIDENT CLINTON NEARLY TWO WEEKS AGO IF WE GET DEFICIT REDUCTION SAYS MR SINAI THE RIGHT RANGE WOULD BE 65 TO 7 I DON'T THINK THE RALLY IS OVER BY ANY STRETCH OF THE IMAGINATION SAYS DAVID ADER A MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES IT DEPENDS ON HOW CREDIBLE A BUDGET PLAN GETS OUT OF CONGRESS ACCORDING TO MR ADER IF TALK GETS GOING ABOUT MORE SPENDING CUTS LONGTERM YIELDS COULD GO BELOW 65 MR ADER ADDS THAT A SHORTTERM CORRECTION COULD OCCUR OVER THE NEXT COUPLE OF WEEKS BUT THAT THE GENERAL DOWNWARD TREND IN LONGTERM YIELDS IS LIKELY TO CONTINUE SINCE ELECTION DAY THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND HAS TUMBLED ABOUT 090 PERCENTAGE POINT HITTING 689 AS OF FRIDAY WHILE THE YIELD ON THE 10YEAR TREASURY NOTE HAS DROPPED NEARLY 030 PERCENTAGE POINT IN JUST THE PAST WEEK TO 601 BEFORE LAST MONTH THE LAST TIME THE YIELD OF 10YEAR NOTES WAS THIS LOW WAS MORE THAN TWO DECADES AGO MR SINAI SAYS THAT A LOT OF THE INITIAL GOOD NEWS OF THE PROPOSED DEFICIT REDUCTION PLAN HAS ALREADY BEEN FACTORED IN AND THE MARKETS ARE WAITING FOR THE NEXT SERIES OF REACTIONS TO THE CLINTON PLAN OPTIMISM ABOUT THE PRESIDENT'S PROPOSED ECONOMIC PACKAGE HAS CLEARLY BEEN THE MAJOR FORCE BEHIND THE RECENT RATE DROPS REPORTS OF LOW INFLATION AND CONTINUED SLUGGISH ECONOMIC GROWTH HAVE ALSO HELPED MANY ON WALL STREET HAVE ARGUED THAT THE BOND MARKET HAS RALLIED NOT BECAUSE INVESTORS ARE CONVINCED THAT THE PRESIDENT WILL SUCCEED IN REDUCING THE DEFICIT BY CUTTING SPENDING BUT BECAUSE THEY BELIEVE THE SHARP TAX INCREASES HE PROPOSES WILL HURT THE ECONOMY AND FURTHER SLOW AN ALREADY WEAK RECOVERY BOND INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE THEY BELIEVE IT CAN LEAD TO INCREASED INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH FIXED RATES OF RETURN MANY ANALYSTS SAY THAT THE RISE IN YIELDS TOWARD THE END OF LAST WEEK IS NOTHING TO WORRY ABOUT AFTER PLUNGING AS LOW AS 682 THE YIELD ON THE 30YEAR BOND ROSE TO 689 BY WEEK'S END THE RISE IN INTEREST RATES IS A CORRECTION BUT IT IS NOT A REVERSAL OF THE DOWNWARD TREND SAYS MR ADER OF TECHNICAL DATA ANOTHER ARGUMENT IN FAVOR OF LOWER BOND YIELDS IS THE STRENGTH OF DEMAND FOR BONDS IN THE FACE OF EVENTS THAT MIGHT ORDINARILY HAVE BOOSTED YIELDS MORE SHARPLY ANALYSTS SAY WHAT'S IMPRESSIVE IN THE BEHAVIOR OF THE MARKET OVER THE LAST COUPLE OF DAYS IS HOW IT HAS WITHSTOOD TWO BAD TREASURY AUCTIONS AND A HUGE WAVE OF NEW CORPORATE BOND ISSUANCE MR ADER SAYS MARC A MILES EXECUTIVE VICE PRESIDENT OF HC WAINWRIGHT & CO ECONOMICS ALSO BELIEVES INTEREST RATES CAN GO LOWER BUT NOT BECAUSE OF THE PRESIDENT'S ECONOMIC PACKAGE WE'RE A LONG WAY FROM BEING BEARISH ON THE BOND MARKET HE SAYS BUT I DON'T SEE WHY CLINTON'S PLAN WOULD HELP ACCORDING TO MR MILES IT'S USUALLY ARGUED THAT CLOSING THE DEFICIT LOWERS INTEREST RATES BUT IF YOU LOOK AT THE LAST 10 YEARS RATES HAVE BEEN COMING DOWN EVEN WITH THE LARGE DEFICITS MR MILES CLAIMS THE UNDERLYING TREND FOR LOWER RATES WAS THERE BEFORE CLINTON BECAME A CANDIDATE MR MILES'S STRONG OPTIMISM FOR SIGNIFICANTLY LOWER LONGTERM INTEREST RATES OVER THE NEXT TWO YEARS PUTS HIM IN A SMALL GROUP OF ECONOMIC SEERS WHILE HE PREDICTS THAT LONGTERM RATES COULD HIT 65 BY YEAR END MR MILES IS CONVINCED THAT THEY WILL DROP BELOW 6 NEXT YEAR BECAUSE INFLATIONARY EXPECTATIONS ARE DIMINISHING HE POINTS TO COMMODITIES PRICES AND THE LARGE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES FALLING COMMODITIES PRICES OVER THE LAST TWO YEARS AND A STUBBORNLY WIDE GAP BETWEEN LONGTERM AND SHORTTERM INTEREST RATES BOTH INDICATE THAT LONGTERM INTEREST RATES HAVE MUCH FURTHER TO FALL HE SAYS A NUMBER OF ECONOMISTS HOWEVER ARE SKEPTICAL ABOUT YIELDS DROPPING SIGNIFICANTLY LOWER JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC SAYS THAT IN ALL LIKELIHOOD THE 30YEAR BOND YIELD WON'T GO LOWER THAN 675 INTEREST RATES COULD RISE AGAIN THIS FALL HE SAYS BECAUSE OF STEADY STRENGTHENING OF ECONOMIC ACTIVITY AND SKEPTICISM THAT INFLATION WILL FALL SIGNIFICANTLY AND BECAUSE OF GROWTH OF PRIVATE SECTOR DEBT INTEREST RATES HAVE BEEN HELPED BY NEWS ON THE BUDGET DEFICIT BUT WE'RE PROBABLY NOT GOING TO RECEIVE MUCH MORE IN THE WAY OF GOOD NEWS ON BUDGETDEFICIT REDUCTION MR LONSKI SAYS THAT HAS BEEN ALMOST FULLY PRICED INTO EXISTING BOND YIELDS THE LAST TIME LONGTERM INTEREST RATES PLUNGED SO SHARPLY WAS IN 1986 SAYS MR LONSKI WHEN THE CONSUMER PRICE INDEX ONE MEASURE OF INFLATION DROPPED TO 11 BECAUSE OF FALLING OIL PRICES OVER THE FIRST SIX MONTHS OF THAT YEAR THE YIELD ON 30YEAR TREASURY BONDS PLUNGED TO 710 FROM 962 AS INVESTORS STARTED TO BELIEVE THAT INFLATION WAS NO LONGER A THREAT BUT LONGTERM RATES SHOT UP TO 1023 BY OCTOBER OF THE FOLLOWING YEAR SHORTLY BEFORE THE STOCK MARKET CRASHED AS INFLATION PICKED UP AGAIN SAYS MR LONSKI AND THE CPI SOARED TO 44 THE PRICES OF TREASURY NOTES AND BONDS ENDED NARROWLY MIXED ON FRIDAY AS TRADING ACTIVITY WAS DISRUPTED BY AN EXPLOSION AND FIRE AT THE WORLD TRADE CENTER IN NEW YORK CITY BECAUSE OF THE EXPLOSION AND THE EVACUATION OF THE WORLD TRADE CENTER BUILDINGS A NUMBER OF SECURITIES FIRMS WERE FORCED TO HALT THEIR OPERATIONS INCLUDING INTERDEALER BROKER CANTOR FITZGERALD SECURITIES CORP AND PRIMARY DEALERS DEAN WITTER REYNOLDS INC AND YAMAICHI INTERNATIONAL INC BY DAY'S END THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED LESS THAN 1/8 POINT TO 102 26/32 FOR A YIELD OF 689 UP FROM 688 ON THURSDAY THE 10YEAR NOTE ON THE OTHER HAND ROSE MORE THAN 1/8 POINT TO 101 22/32 TO YIELD 601 DOWN FROM 603 ON THURSDAY THE MARKET RECEIVED MIXED ECONOMIC NEWS FRIDAY MORNING THE COMMERCE DEPARTMENT REPORTED FOURTHQUARTER GROSS DOMESTIC PRODUCT WAS REVISED UPWARD TO 48 FROM 38 THEN AT MIDMORNING IT WAS ANNOUNCED THAT THE CHICAGO PURCHASING MANAGERS' INDEX EASED TO 608 IN FEBRUARY FROM 609 IN JANUARY CORPORATE BOND SALES SLOWED FRIDAY AS UNDERWRITERS SPENT THE SESSION PLACING UNSOLD BONDS AND PREPARING FOR THIS WEEK'S BUSINESS BUT THE PACE WAS STILL STRONG ENOUGH TO BREAK THE RECORD FOR ISSUANCE IN ONE WEEK AS LONGTERM AND INTERMEDIATETERM INTEREST RATES DROPPED TO HISTORIC LOWS COMPANIES BROUGHT 1376 BILLION OF NEW CORPORATE BONDS TO THE MARKET LAST WEEK WITH MUCH OF THE BORROWING TARGETED TO REFINANCING HIGHERCOUPON DEBT THE PREVIOUS RECORD WAS SET IN THE WEEK ENDED JAN 11 1992 WHEN BORROWERS RAISED 133 BILLION ACCORDING TO SECURITIES DATA CO BANKERS ESTIMATED BETWEEN 1 BILLION AND 3 BILLION OF SECURITIES LEFT OVER FROM THIS WEEK'S BORROWING SPREE REMAIN ON DEALER SHELVES THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9303010054 930301 BUSINESS BRIEF CONTINENTAL AG SALES IN 1992 INCREASED 34 DURING A SATISFACTORY YEAR' CONTINENTAL AG CALLED 1992 A SATISFACTORY YEAR AND SAID GROUP SALES ROSE 34 TO 97 BILLION MARKS 593 BILLION FROM 938 BILLION MARKS THE HANNOVER GERMANY TIRE MAKER SAID IT WAS PROFITABLE BUT WOULDN'T COMMENT FURTHER HOWEVER THE COMPANY WARNED THAT 1993 WILL BE A DIFFICULT YEAR WITH THE AUTOMOBILE INDUSTRY IN THE EUROPEAN COMMUNITY FACING A SHARP DOWNTURN CONTINENTAL SAID THIS WILL BE PARTIALLY OFFSET BY THE ECONOMIC UPTURN IN NORTH AMERICA AS A RESULT CONTINENTAL SAID IT DIDN'T EXPECT A SHARP DROP IN THE CURRENT YEAR'S SALES AND PROFIT CONTINENTAL WAS ABLE TO BOOST 1992 SALES DESPITE BEING HURT BY FLUCTUATIONS IN EXCHANGE RATES WITHOUT THE EXCHANGE RATE FLUCTUATIONS THE TIRE MAKER'S SALES WOULD HAVE INCREASED 5 THE COMPANY SAID IN TERMS OF VOLUME SALES OF AUTO TIRES ROSE ABOUT 6 TO 617 MILLION TIRES WHILE TRUCK TIRE SALES INCREASED 6 TO 39 MILLION TIRES 9303010053 930301 MOUNTING OUTCRY A CORRUPTION SCANDAL LEAVES ITALY'S LEADERS WEAKENED AND SCORNED ANGRY CALLS FOR CHANGE GROW AS BRIBERY PROBES SNARE POLITICAL BUSINESS ELITE ECONOMIC BLOW OF KICKBACKS BY CRAIG FORMAN AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL A DOZEN YEARS AFTER AN EARTHQUAKE LEVELED THE ALPINE VILLAGE OF TEORA ITALY 63YEAROLD MARIA ROSA STILL CALLS A TEMPORARY SHED HOME INSTEAD OF GOING TO REBUILD THE HOUSES OF PEOPLE LIKE HER MILLIONS OF DOLLARS OF DISASTERRELIEF FUNDS ARE NOW LINING THE POCKETS OF POLITICIANS AND BUSINESSMEN INVESTIGATORS ARE DISCOVERING NOT ONLY WAS WORK NEVER COMPLETED IT WASN'T EVEN BEGUN THAT MONEY WAS STOLEN SAYS LOCAL ACTIVIST PIETRO SIMONETTI FROM ITS NORTHERN MOUNTAINS TO ITS SOUTHERN HEEL ITALY IS BEING JOLTED BY A POLITICAL AND ECONOMIC EARTHQUAKE MORE POWERFUL THAN THE ONE THAT DESTROYED MRS ROSA'S VILLAGE UNFOLDING REVELATIONS OF A WIDESPREAD NETWORK OF CORRUPTION AMONG ITALY'S RULING ELITE HAVE PROMPTED THE ARRESTS OF HUNDREDS OF THE NATION'S POLITICAL AND BUSINESS LEADERSAND HAVE OUTRAGED A NATION NOT EASILY IMPRESSED BY SCANDAL WHAT YOU ARE SEEING IS THE END OF A REGIME A BLOODLESS REVOLUTION ON THE SCALE OF ANYTHING THAT HAS HAPPENED IN EASTERN EUROPE SAYS CARLO DE BENEDETTI CHAIRMAN OF ELECTRONICS GIANT ING C OLIVETTI SPA FOR DECADES ITALY HAS OFFERED A TEXTBOOK EXAMPLE OF HOW NOT TO RUN A COUNTRY IT WAS DOMINATED BY CORRUPTION IT COULD NEVER KEEP THE MAFIA IN CHECK ITS FRACTIOUS POLITICAL SYSTEM VIRTUALLY INVENTED LEGISLATIVE GRIDLOCK BUT NOW ITALY HAS A HISTORIC OPPORTUNITY TO CLEAN UP ITS ACT A SMALL TEAM OF PROSECUTORS AND JUDGES BACKED BY A FRUSTRATED AND ANGRY ELECTORATE IS LOCKING UP A GENERATION OF BUSINESS AND POLITICAL LEADERS WHOSE FOURDECADE GRIP ON POWER RESTED MOSTLY ON FEARS THAT THE COMMUNISTS WOULD SUCCEED THEM IF THEY EVER WERE REMOVED BUT TODAY ITALY'S COMMUNIST PARTY IS A DISCREDITED AND WEAKENED FORCE THAT DOESN'T EVEN CALL ITSELF COMMUNIST ANYMORE AND THE PRESSURE FOR CHANGE THAT HAS TRANSFORMED EASTERN EUROPE SUDDENLY IS ERUPTING IN WESTERN EUROPE AS WELL ITALY IS PLAYING OUT THE CONSEQUENCES OF THE END OF THE COLD WAR SAYS JOHN HARPER PROFESSOR OF EUROPEAN STUDIES AT THE JOHNS HOPKINS CENTER IN BOLOGNA A LOT OF PRACTICES THAT COULD BE JUSTIFIED IN THE NAME OF ANTICOMMUNISM INCLUDING THE SYSTEMATIC PAYING OFF OF POLITICIANS TO KEEP THEM IN POWER CAN NO LONGER BE JUSTIFIED THOUGH THE ITALIAN SITUATION IS UNIQUE THE DESIRE FOR A CLEAN SWEEP IS ALSO A GROWING FACTOR ELSEWHERE IN WESTERN EUROPE AND BEYOND IN FRANCE VOTERS ARE INCREASINGLY FED UP WITH POLITICSASUSUAL AND ARE ANGRY AT RECENT POLITICAL SCANDALS THEY ARE LIKELY TO VOTE LATER THIS MONTH FOR AN OPPOSITIONLED GOVERNMENT IN SPAIN AND GERMANY TOO THERE IS GROWING PRESSURE FOR POLITICAL CHANGE BUT NOWHERE IS THAT PRESSURE GREATER THAN IN ITALY THE LIST OF PUBLIC FIGURES INDICTED ARRESTED OR INVESTIGATED READS LIKE A WHO'S WHO IT INCLUDES FORMER PREMIER BETTINO CRAXI INVESTIGATED AND FORMER FOREIGN MINISTER GIANNI DE MICHELIS INVESTIGATED AS WELL AS BUILDING TYCOON GIAMPIERO PESENTI UNDER HOUSE ARREST CONSTRUCTION MAGNATE SALVATORE LIGRESTI ARRESTED AND GABRIELE CAGLIARI CHAIRMAN OF THE STATERUN ENI ENERGY GROUP INVESTIGATED IT IS NOT YET POSSIBLE TO SAY WHERE THE TRAIL OF CORRUPTION WILL LEAD IT HAS ENSNARED NEARLY A DOZEN FORMER CABINET MINISTERS 60ODD LEGISLATORS AND HUNDREDS OF BUSINESS LEADERS BUT IT IS ALREADY CLEAR THAT THE MANI PULITE OR CLEAN HANDS INVESTIGATIONS WILL FOREVER CHANGE THE LANDSCAPE OF THE DEVELOPED WORLD'S FOURTHLARGEST DEMOCRACY A WAY OF LIFE BASED ON BRIBES KICKBACKS AND INFLUENCEPEDDLING THAT HAS DOMINATED ITALY SINCE WORLD WAR II IS ON TRIAL PEOPLE WANT A CHANGE THEY DON'T WANT TO LIVE AS THEY DID BEFORE SAYS NADIO DELAI DIRECTOR OF THE ROMEBASED CENSIS PUBLICOPINION RESEARCH GROUP IN A NATION WHERE MORE THAN 50 OF THE ECONOMY IS CONTROLLED BY THE STATE CORRUPTION HAS SPREAD LIKE A VIRUS ADDS UMBERTO NORDIO FORMER CHAIRMAN OF STATECONTROLLED ALITALIA AIRLINES AND NOW HEAD OF A PRIVATE INVESTMENT FIRM MOST SOCIETIES BUILD ANTIBODIES TO CONTROL THE VIRUS ITALY DID NOT INVESTIGATORS ARE FINDING THAT POLITICIANS ROUTINELY DEMANDED KICKBACKS OF AS MUCH AS 10 ON NEARLY EVERY PUBLIC WORKS PROJECT IN THE COUNTRY OVER THE PAST 15 YEARS POLITICAL PARTIES THAT GREW DEPENDENT ON THAT CASH TO FINANCE THEMSELVES GRADUALLY DEMANDED MORE OF IT AS THE CORRUPTION GREW IT BECAME SYSTEMATIC AND EFFICIENT EVEN GOVERNMENTREGULATED SCRUPULOUSLY THE POLITICAL PARTIES SPLIT THE MONEY ACCORDING TO THEIR PERCENTAGE OF THE POPULAR VOTE THEY HANDED OUT CONTRACTS AND PATRONAGE JOBS WITH SIMILAR CONSCIENTIOUSNESS CORRUPTION WAS CAREFULLY REGULATED SAYS ROMANO PRODI FORMER CHAIRMAN OF THE GIANT STATEOWNED IRI INDUSTRIAL CONGLOMERATE AND NOW AN ECONOMICS PROFESSOR IT WAS LIKE A CARTEL LIKE A PUBLIC UTILITY HE CALCULATES THE SYSTEM OF TANGENTI OR KICKBACKS ADDED ROUGHLY 15 TO 20 A YEAR TO BUSINESS COSTS IN SOME YEARS THAT WAS THE DIFFERENCE BETWEEN PROFIT AND LOSS EVENTUALLY THE CHANGES UNLEASHED HOLD THE PROMISE OF A NEW CLEANER GOVERNMENT PEOPLE ARE ALREADY TALKING ABOUT REWRITING PARTS OF THE ITALIAN CONSTITUTION TO ADD CHECKS AND BALANCES THEY WANT TO FOSTER THE GROWTH OF A TWOPARTY SYSTEM TO REPLACE THE FRACTIOUS FLORENTINESTYLE INTRIGUES THAT HAVE DOMINATED ITALIAN POLITICS FOR YEARS OVER THE LONGER TERM MUCH OF THE POWERAND ASSETSCURRENTLY HELD BY THE STATE AND THE DOMINANT POLITICAL PARTIES COULD BE RETURNED TO THE INDIVIDUAL CITIZENS VIA ELECTORAL REFORM AND BY ACCELERATING ITALY'S HALTING EXPERIMENT WITH PRIVATIZATION MANY ITALIANS SAY THEY WOULD FAVOR SUCH CHANGES IN THE MEANTIME THOUGH THINGS ARE LIKELY TO GET WORSE BEFORE THEY GET BETTER THE FRAGILE COALITION GOVERNMENT OF SOCIALIST PREMIER GIULIANO AMATO SURVIVED A CONFIDENCE VOTE LAST WEEK AFTER THREE CABINET MINISTERS RESIGNED IN CONNECTION WITH THE CORRUPTION SCANDAL BUT THE GOVERNMENT'S DAYS ARE PROBABLY NUMBERED THE SITUATION IS LIKELY TO REMAIN HIGHLY UNSTABLE AT LEAST UNTIL A REFERENDUM NEXT MONTH WHICH COULD BE THE FIRST STEP IN OVERHAULING ITALY'S UNWIELDY ELECTORAL SYSTEM THE INVESTIGATIONS ARE PARALYZING THE GOVERNMENT WEAKENING THE ECONOMY AND SENDING THE LIRA TO RECORD LOWS THEY ARE ALSO PROMPTING A LEVEL OF PSYCHOLOGICAL INTROSPECTION THAT IS AS STIRRING AS IT IS DEEP MANY ITALIANS ARE WONDERING IF THE ENTIRE SYSTEM IS CORRUPT IS EVERYONE GUILTY AND IS IT RIGHT OR FAIR TO PROSECUTE CERTAIN INDIVIDUALS WHILE SUCH QUESTIONS ARE PONDERED THE COUNTRY CAN'T STOP WATCHING THE SCANDAL UNFOLD LIKE A SUSPENSEFUL SOAP OPERA IN BARS AND CAFES CONVERSATION HALTS AS THE EVENING NEWS COMES ON ANNOUNCING YET ANOTHER INDICTMENT OF A BIGWIG PREVIOUSLY THOUGHT UNTOUCHABLE IT'S BIGGER THAN YOUR WALL STREET SCANDALS OR YOUR WATERGATE SAYS A MILANBASED BANKER IT MAKES US LOOK LIKE A BANANA REPUBLIC OVER THE WEEKEND 100000 PEOPLE DEMONSTRATED IN ROME TO DEMAND PREMIER AMATO'S OUSTER THE POPE CITED THE SCANDALS IN AN ADDRESS YESTERDAY AND A VATICAN CARDINAL WARNED THE GUILTY THAT THE RELIGIOUS ACT OF CONFESSION ISN'T GOOD ENOUGH THEY CAN ONLY RECEIVE ABSOLUTION IF THEY GIVE BACK ALL THE STOLEN MONEY BUT FEW PEOPLE CAN CLAIM TO BE ENTIRELY INNOCENT WE ALL CONTRIBUTED POLITICIANS BUSINESSMEN AND PROFESSIONALS EVERYBODY HAD SOME INTEREST IN KEEPING THE SYSTEM ALIVE SAYS MR NORDIO THE FORMER HEAD OF ALITALIA MEMBERS OF ITALY'S ELITE ARE BEING ARRESTED IN PREDAWN RAIDS THERE NOW ARE AS MANY BIGWIGS RUBBING ELBOWS IN DETENTION AS ON THE RIVIERA IN SUMMER BUT PRISON ISN'T SOME CUSHY CLUB FED FIAT SPA'S CHIEF FINANCIAL OFFICER FRANCESCO PAOLO MATTIOLI AND ANTONIO MOSCONI CHIEF EXECUTIVE OFFICER OF FIAT INSURANCE GROUP TORO ASSICURAZIONI SPA HAVE BEEN IN MILAN'S AUSTERE SAN VITTORE PRISON FOR A WEEK MR MOSCONI'S LAWYER PROTESTED LAST WEEK THAT HIS CLIENT SHARES A RATINFESTED CELL WITH THREE OTHER INMATES AND IS FORCED TO SLEEP ON MATTRESSES ON THE FLOOR IT OFFENDS THE HUMAN DIGNITY OF A PERSON HE SAID FURTHER INDICTMENTS ARE LIKELY ON FRIDAY THE SCANDAL CLAIMED TWO MORE TARGETS INDUSTRIALIST RAUL GARDINI FORMER HEAD OF THE INDUSTRIAL CONGLOMERATE FERRUZZI FINANZIARIA SPA AND INVESTMENT BANKER SERGIO CRAGNOTTI THEY ARE BEING INVESTIGATED IN CONNECTION WITH IRREGULARITIES IN THE 1990 SALE TO ENI OF MONTEDISON SPA'S 40 STAKE IN ENIMONT SPA A CHEMICALS JOINT VENTURE ONE OF ITALY'S RICHEST PEOPLE MR GARDINI IS ALSO THE MASTER OF ITALY'S RECENT CHALLENGE FOR THE AMERICA'S CUP AS THE NEWS OF THE GARDINI INVESTIGATION BROKE THE PHONES STARTED RINGING IN MR DE BENEDETTI'S OFFICE NEAR TURIN THE TWO TITANS OF INDUSTRY HAVE OFTEN SPARRED IN THE PAST TAKING OFF HIS GLASSES AND RUBBING HIS EYES MR DE BENEDETTI SAYS IF ANYONE HAD SAID SIX MONTHS AGO THIS WOULD HAPPEN IT WOULD HAVE BEEN UNBELIEVABLE MR DE BENEDETTI HAS HAD HIS OWN TROUBLES IN THE RECENT PAST LAST YEAR HE WAS CONVICTED OF CONTRIBUTING TO THE FRAUDULENT BANKRUPTCY OF BANCO AMBROSIANO ALTHOUGH HE MAINTAINS HIS INNOCENCE AND IS APPEALING THAT VERDICT CORRUPTION HAS INDEED TAKEN A BIG ECONOMIC TOLL TURIN'S EINAUDI INSTITUTE ESTIMATES CORRUPTION COST THE ITALIAN ECONOMY AS MUCH AS 65 TRILLION LIRE 41 BILLION ANNUALLY FOR THE PAST DECADE THE CORRUPTION SPIRALED UPWARD LIKE INFLATION AS BRIBES GOT BIGGER EVERYONEFROM STATEOWNED COMPANIES TO THE SMALLEST ENTREPRENEURBOOSTED PRICES TO COVER THE COST OF KICKBACKS THE INSTITUTE FIGURES CORRUPTION ADDED AS MUCH AS 15 TO THE COUNTRY'S DEBT WHICH NOW TOTALS 105 OF ITALY'S GROSS NATIONAL PRODUCT MEANTIME THE CURRENT SITUATION IS MAKING ITALY'S TROUBLED ECONOMIC OUTLOOK EVEN CLOUDIER AFTER SEVERAL YEARS OF SLOWING GROWTH ITALY IS ON THE VERGE OF RECESSION THE POLITICAL CRISIS HAS WEAKENED THE CURRENCY AND PROMPTED CAPITAL TO FLEE THE SITUATION IS MAKING PEOPLE QUESTION WHETHER THEY OUGHT TO BE INVESTING IN ITALY ITALIAN STATE DEBT HAS BEEN PLACED ON CREDITWATCH LISTS FOR POTENTIAL DOWNGRADINGS THAT COULD EVENTUALLY FORCE THE GOVERNMENT TO RAISE INTEREST RATES FINALLY THE FREEZING OF MANY CONSTRUCTION PROJECTS BECAUSE OF THE INQUIRIES IS AGGRAVATING UNEMPLOYMENT ALREADY HEADED TOWARD 12 IF THE ECONOMY IS A CLEAR LOSER THERE HAVE BEEN SOME POLITICAL WINNERS FROM THE SCANDALS FOREMOST ARE THE HANDFUL OF PROSECUTORS WHO HAVE LED THE CRACKDOWN AMONG THEM IS JUDGE ANTONIO DI PIETRO A 43YEAROLD LAWYER WHOSE CAREER UNTIL NOW HAS MOSTLY BEEN ONE OF DISTINGUISHED OBSCURITY USING HIS PENCHANT FOR COMPUTERSAND TESTIMONY FROM A GROWING NUMBER OF WHISTLEBLOWERSJUDGE DI PIETRO AND HIS COLLEAGUES HAVE TRACKED THE EXTENSIVE NETWORK OF CORRUPTION WORKING 14HOUR DAYS AND MOST WEEKENDS TODAY THE UNASSUMING JUDGE FINDS HIMSELF A MEDIA STAR THE SUBJECT OF SEVERAL BOOKS AND TELEVISION SHOWS HE HAS A FAN CLUB HIS PICTURE IS ON TSHIRTS AND HE IS PROTECTED BY A TEAM OF BODYGUARDS I'M NOT AT WAR WITH THE SYSTEM I'M A JUDGE I HAVE TO PURSUE SPECIFIC FACTS JUDGE DI PIETRO SAID RECENTLY BUT AT THIS POINT A SOLUTION IS NEEDED MR DI PIETRO AND MOST OF THE OTHER PROSECUTORS SAY THEY DON'T HAVE POLITICAL ASPIRATIONS BUT ALREADY A NEW GENERATION OF POTENTIAL LEADERS IS LINING UP FOR A CHANCE THE BIGGEST BENEFICIARY HAS BEEN THE POPULIST NORTHERN LEAGUE ONCE CONSIDERED AN EXTREMIST GROUP OF RIGHTWING SECESSIONISTS THE LEAGUE HAS MODERATED ITS MILITANT TONES AND GARNERED AN ENORMOUS FOLLOWING ON THE PLATFORM OF HONESTY AUTONOMY AND FEDERALISM THOUGH IT RECEIVED 87 OF THE NATIONAL VOTE IN LAST YEAR'S PARLIAMENTARY ELECTIONS RECENT POLLS INDICATE THE PARTY WOULD BE ITALY'S SECOND OR THIRD LARGEST IF ELECTIONS WERE HELD TODAY WE GREW BECAUSE WE'RE VERY CLOSE TO THE PEOPLE SAYS FRANCO ROCCHETTA A LEGISLATOR AND SENIOR LEAGUE OFFICIAL IN ROME NO WESTERN EUROPEAN OR AMERICAN COUNTRY HAS BEEN DEVASTATED BY SUCH AN ARROGANT KLEPTOCRACY AS ITALY HAS NOW THERE'S HOPE THE REGIME WILL END MANY CREDIT THE LEAGUE FOR PROVIDING A POPULAR BASE TO ENABLE THE PROSECUTORS TO CONTINUE THEIR PROBES AND THE MOVEMENT'S FEDERALIST PLATFORM TAKING POWER AWAY FROM THE CENTRAL GOVERNMENT IN ROME AND GIVING IT BACK TO THE REGIONS ALREADY IS BEING INTEGRATED INTO PROPOSED CONSTITUTIONAL CHANGES ANOTHER POPULIST REFORMER IS NANDO DALLA CHIESA DEPUTY LEADER OF AN ANTICORRUPTION PARTY CALLED LA RETE WE WANT TO EXTEND THE IDEA OF DEMOCRACY TO EVERY CLASS EVERY PART OF SOCIETY HE SAYS THERE IS A LONG ROAD AHEAD FOLLOWING NEXT MONTH'S REFERENDUM PARLIAMENT IS EXPECTED TO CRAFT MORE FARREACHING CHANGES TO CONVERT FROM PROPORTIONAL TO MAJORITY RULE THAT SHOULD NOT ONLY REDUCE THE NUMBER OF PARTIES VYING FOR POWER BUT CUT THE ENORMOUS COSTS OF PARTY FINANCING NEW ELECTIONS UNDER THIS SYSTEM COULD BE CALLED AS EARLY AS THIS FALL FOR NOW THOUGH THE BIGGEST SHOCK IS THAT MEMBERS OF THE RULING CLASS MUST COME TO TERMS WITH THE REALIZATION THAT THEY MAY ALL BE ENTANGLED IN THE WEB JUSTICE MINISTER GIOVANNI CONSO IS CONSIDERING A SOCALLED POLITICAL SOLUTION PROVIDING LENIENCY FOR THOSE WHO VOLUNTARILY CONFESS OTHER POLITICIANS ARE SAYING THERE OUGHT TO BE A GENERAL AMNESTY OR AT LEAST LIGHTER SENTENCES FOR THOSE WHOSE JOB WAS EFFECTIVELY TO BE CORRUPT BUT THE SCANDAL ALREADY MAY HAVE GONE TOO FAR FOR PEOPLE LIKE THE SHEDDWELLING MRS ROSA TO BACK AN AMNESTY SAYS MR DELAI THE PUBLICOPINION EXPERT THE PEOPLE NOWADAYS DEMAND PUNISHMENT MAUREEN KLINE CONTRIBUTED TO THIS ARTICLE 9303010052 930301 FOREIGN EXCHANGE DOLLAR RISES AGAINST YEN ON EMPHASIS BY G7 ON FISCAL POLICY NOT CURRENCY A WALL STREET JOURNAL NEWS ROUNDUP THE DOLLAR ROSE AGAINST THE YEN IN TOKYO EARLY MONDAY LIFTED BY SATURDAY'S MEETING OF FINANCE OFFICIALS FROM THE SEVEN LARGEST INDUSTRIALIZED NATIONS THE US CURRENCY DREW STRENGTH FROM AN EMPHASIS AT THE MEETING ON FISCAL POLICY RATHER THAN A STRONGER YEN AS A MEANS TO SPUR JAPAN'S ECONOMY THAT TRADERS AND ECONOMISTS SAID IS LIKELY TO HELP HASTEN THE DOLLAR'S RISE FROM ITS RECENT RECORD LOWS AGAINST THE YEN THEY ADDED THAT THE US CURRENCY COULD GAIN FURTHER SUPPORT FROM THE WARM RECEPTION GIVEN AT THE MEETING TO PRESIDENT CLINTON'S ECONOMIC PACKAGE AND THE NEWS THAT GERMANY EXPECTS MONEYMARKET RATES TO FALL ABOUT MIDDAY IN TOKYO MONDAY THE DOLLAR STOOD AT 11872 YEN UP FROM ITS LEVEL IN NEW YORK LATE FRIDAY OF 11825 YEN THE FRIDAY LEVEL ITSELF WAS UP FROM 11748 YEN LATE THURSDAY THE DOLLAR ALSO STOOD AT 16552 MARKS MONDAY UP FROM 16455 MARKS FRIDAY AND 16357 MARKS THURSDAY EXCHANGE RATES WEREN'T A MAIN FOCUS OF THE SATURDAY MEETING OF THE GROUP OF SEVEN NATIONS COMMENTS TO THE NEWS MEDIA CENTERED MOSTLY ON THE SAFER GROUND OF FISCAL POLICY BRITISH CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT UNDERSCORED THE AGENDA WHEN HE SAID THAT EXCHANGE RATES WERE DISCUSSED ONLY FROM TIME TO TIME HE DECLINED TO GIVE DETAILS MOST OTHER MINISTERS AGREED THAT EXCHANGERATE DISCUSSIONS WERE MINIMAL THE MAIN NUGGET OF NEWS FOR PARTICIPANTS IN THE CURRENCY MARKETS WAS PROVIDED BY A TOP US TREASURY OFFICIAL WHO SAID THE US WOULD LIKE TO SEE JAPAN TURN TO FISCAL POLICY RATHER THAN MONETARY ACTION TO STIMULATE ITS ECONOMY BUT JAPANESE FINANCE MINISTER YOSHIRO HIYASHI GAVE NO HINT THAT JAPAN IS YET CONVINCED THAT ITS GOVERNMENT SHOULD SPEND MORE THAN IT ALREADY HAS PROPOSED TO REVIVE ITS TROUBLED ECONOMY AN INCREASE IN JAPANESE DOMESTIC DEMAND IT IS BELIEVED WOULD NARROW THE COUNTRY'S BULGING TRADE SURPLUSES WITH THE US AND EUROPE A STRONGER YEN COULD DO THAT TOO BUT IT ALSO WOULD HURT JAPANESE EXPORTERS BY MAKING THEIR GOODS MORE EXPENSIVE ABROAD THERE WAS A LACK OF CONFIRMATION OF A DOLLAR MOVE DOWN TO 110 YEN BEING DESIRABLE WHICH IS WHAT EVERYONE HAD BEEN EXPECTING SAID A CURRENCY DEALER IN NEW ZEALAND THE CURRENCY MARKETS HAVE BEEN VERY SENSITIVE TO HOW THE US VIEWS JAPAN'S TRADE BEHAVIOR ON FEB 19 TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS THAT HE WOULD LIKE THE YEN TO STRENGTHEN THAT CAUSED THE ALREADYWEAKENING DOLLAR TO SINK TO 116 YEN US OFFICIALS SUBSEQUENTLY BACKED AWAY FROM THE STATEMENT ALLOWING THE DOLLAR TO REBOUND TO 118 YEN REGARDING GERMANY BUNDESBANK PRESIDENT HELMUT SCHLESINGER SAID GERMAN MONEYMARKET RATES ARE LIKELY TO FALL AS A RESULT OF AN INCREASE IN BANK LENDING GERMAN BANKS WILL HAVE MORE CASH TO LEND WHEN THE CENTRAL BANK ON MONDAY SUBSTANTIALLY LOWERS ITS MINIMUM RESERVE REQUIREMENT AS PLANNED MR SCHLESINGER WOULDN'T COMMENT DIRECTLY ON WHETHER KEY OFFICIAL GERMAN INTEREST RATES WOULD BE LOWERED SOON HE SAID SUCH ACTION WILL BE TAKEN WHEN THE TIME IS RIPE THE WORLD DOESN'T CHANGE FUNDAMENTALLY EVERY TWO WEEKS HE SAID THE BUNDESBANK MOST RECENTLY LOWERED ITS LOMBARD RATE AND ITS DISCOUNT RATE ON FEB 4 DESPITE MR SCHLESINGER'S NONCOMMITAL STATEMENTS ABOUT BUNDESBANK POLICY DEREK SAVILLE FOREIGNEXCHANGE MANAGER AT STANDARD CHARTERED BANK SAID THE MARKETS ARE STILL EXPECTING LOWER GERMAN INTEREST RATES IT IS ALMOST CERTAIN HE SAID THAT RATES WILL BE CUT AT THE MARCH 4 MEETING OF THE BUNDESBANK'S POLICYMAKING COUNCIL 9303010051 930301 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 3 1/4 LOW 3 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 3 30 TO 39 DAYS 307 40 TO 89 DAYS 308 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 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 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 267 THREE MONTHS 279 SIX MONTHS 3 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 308 ONE MONTH 312 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 304 90 DAYS 308 120 DAYS 309 150 DAYS 310 180 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 1/4 3 1/8 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 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 FEBRUARY 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 306 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 730 60 DAYS 741 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4375 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 728 60 DAYS 738 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 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 9303010050 930301 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH SYSTEM FOR TRUCKERS AT STOPS TO BE SET UP WITH TRENDAR AMERICAN TELEPHONE & TELEGRAPH CO AND TRENDAR CORP A MAKER OF POINTOFSALE TRANSACTION SYSTEMS SAID THEY WOULD JOINTLY DEVELOP TRANSACTION STATIONS FOR TRUCK STOPS BASED ON AT&T'S SMART CARD TECHNOLOGY THE SMARTFUEL SYSTEM WHICH WILL BE INTRODUCED IN VIRGINIA DURING THE SECOND QUARTER WILL BE AT THE PUMP AND WILL BE ABLE TO TAKE STANDARD MAGNETIC STRIP CREDIT CARDS AS WELL AS THE AT&T SMART CARD THE SMART CARD LOOKS LIKE A STANDARD CREDIT CARD BUT SMART CARDS HAVE MICROPROCESSORS AND MEMORY CHIPS THAT CAN STORE THE EQUIVALENT OF SEVERAL TYPEWRITTEN PAGES OF INFORMATION ACCORDING TO AT&T THE SMARTFUEL SYSTEM WILL SPEED TRANSACTIONS FOR TRUCK DRIVERS BY HAVING CREDIT PURCHASE AUTHORIZATION AUTOMATED AND PURCHASE INFORMATION STORED ELECTRONICALLY ON THE SMART CARD THE SMARTFUEL SYSTEM COULD ALSO COMMUNICATE WITH THE TRUCKING COMPANY'S HEADQUARTERS TO NOTIFY IT OF PURCHASE INFORMATION SYSTEMS OF TRENDAR BASED IN NASHVILLE RECORD THE SALE OF ABOUT 75 BILLION GALLONS OF DIESEL FUEL ANNUALLY IN MORE THAN 1100 TRUCK STOPS 9303010049 930301 NOTICE TO READERS QUOTES ARE UNAVAILABLE BECAUSE OF DAMAGE TO CIRCUITS AND COMPUTER SYSTEMS CAUSED BY THE EXPLOSION FRIDAY AT THE WORLD TRADE CENTER 9303010048 930301 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH NCR'S MARKETING OPERATIONS ARE PUT INTO SINGLE DIVISION NCR CORP DAYTON OHIO SAID IT PULLED ITS VARIOUS MARKETING OPERATIONS INTO A SINGLE WORLDWIDE DIVISION SEPARATING THEM FROM THE US SALES FORCE AND CHANGING THE REPORTING STRUCTURE OF SOME OVERSEAS OPERATIONS NCR A DIVISION OF AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID THE NEW WORLDWIDE MARKETING ORGANIZATION WILL BE HEADED BY RAYMOND CARLIN AN NCR VICE PRESIDENT THE COMPUTER COMPANY SAID ITS NEW STRUCTURE WILL HELP IT UNDERSTAND BETTER THE NEEDS OF ITS CUSTOMERS SEPARATELY NCR SAID IT FILED A PATENT INFRINGEMENT LAWSUIT IN FEDERAL COURT IN ATLANTA AGAINST MICROBILT CORP A UNIT OF FIRST FINANCIAL MANAGEMENT CORP NCR SAID IT IS CLAIMING THAT MICROBILT INFRINGED A PATENT ON AN NCR DEVICE THAT ALLOWS RETAILSTORE CUSTOMERS TO ENTER THEIR SIGNATURES INTO A COMPUTER FOR CREDITCARD TRANSACTIONS FIRST FINANCIAL MANAGEMENT BASED IN ATLANTA COULDN'T BE REACHED TO COMMENT 9303010047 930301 BUSINESS BRIEF OKI ELECTRIC INDUSTRY CO FORECAST FOR THE FISCAL YEAR IS REVISED FROM NET TO LOSS OKI ELECTRIC INDUSTRY CO A MAKER OF PRINTERS IN JAPAN REVERSED ITS FORECAST FOR GROUP RESULTS TO A WIDE LOSS FROM A PREDICTION OF A GAIN AS THE FIRM MORE THAN DOUBLED ITS FORECAST FOR PARENTONLY LOSSES THIS FISCAL YEAR THE COMPANY SAID THE FIRM CITED A FALLOFF IN CAPITAL INVESTMENTS IN THE FINANCIAL INDUSTRY FOR DECLINES IN SALES AS WELL AS VALUATION LOSSES ON SECURITIES HOLDINGS THAT ARE TREATED AS EXTRAORDINARY LOSSES THE COMPANY NOW SEES A CONSOLIDATED OR GROUP PRETAX LOSS FOR THE FISCAL YEAR TO END MARCH 31 OF 40 BILLION YEN 341 MILLION A SWING FROM THE GAIN OF FIVE BILLION YEN FORECAST BY THE FIRM IN OCTOBER AND FROM THE YEARAGO PROFIT OF 314 BILLION YEN 268 MILLION OKI ELECTRIC NOW SEES A GROUP NET LOSS OF 42 BILLION YEN SWINGING FROM THE 10 BILLION YEN PROFIT FORECAST BY THE FIRM IN OCTOBER AND SHARPLY WIDER THAN THE 488 MILLION YEN LOSS REALIZED LAST YEAR THE COMPANY REDUCED ITS FORECAST FOR SALES 71 TO 650 BILLION YEN FROM THE 700 BILLION YEN FORECAST IN THE AUTUMN AND 46 BELOW THE 68128 BILLION YEN A YEAR AGO 9303010046 930301 BUSINESS BRIEF MICROCOM INC CHARGE OF 30 CENTS A SHARE PLANNED DUE TO SETTLEMENT MICROCOM INC NORWOOD MASS SAID IT WILL TAKE A CHARGE OF ABOUT 30 CENTS A SHARE OR ABOUT 3 MILLION FOR ITS FISCAL FOURTH QUARTER ENDING MARCH 31 AS A RESULT OF THE SETTLEMENT OF A CLASSACTION SHAREHOLDER SUIT THE COMPANY SAID IT SETTLED THE SUIT FOR 6 MILLION A SUBSTANTIAL PORTION OF WHICH WILL BE FUNDED BY INSURANCE THE SETTLEMENT IS SUBJECT TO APPROVAL BY THE US DISTRICT COURT IN BOSTON AFTER NOTICE TO SHAREHOLDERS AND A HEARING MICROCOM SAID THE SUIT FILED IN JUNE 1990 ALLEGED SECURITIES VIOLATIONS BY THE COMPANY AND ITS OFFICERS MICROCOM ASSERTED IT HAD MERITORIOUS DEFENSES TO ALL CLAIMS BUT DECIDED TO SETTLE TO AVOID THE CONTINUING DISTRACTION OF ITS MANAGEMENT AND THE EXPENSE OF LITIGATION THE MAKER OF COMPUTER NETWORKING DEVICES HAD EARNINGS OF 999000 OR 10 CENTS A SHARE IN THE YEAREARLIER PERIOD IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MICROCOM FELL 375 CENTS TO 475 9303010045 930301 WHAT'S NEWS BUSINESS AND FINANCE BENTSEN COLLECTED PLAUDITS FOR CLINTON'S ECONOMIC POLICIES AT THE WEEKEND GROUP OF SEVEN MEETING BUT HE CAME AWAY WITHOUT ANY TANGIBLE STEPS TOWARD LOWER GERMAN INTEREST RATES OR INCREASED JAPANESE GOVERNMENT SPENDING OFFICIALS SAID THE TREASURY SECRETARY SUCCEEDED IN LAYING THE GROUNDWORK FOR MORE PROGRESS AT A JULY ECONOMIC SUMMIT IN TOKYO THE DOLLAR ROSE AGAINST THE YEN EARLY MONDAY GAINING STRENGTH FROM AN EMPHASIS AT THE MEETING ON FISCAL POLICY RATHER THAN ON A STRONGER YEN AS A WAY TO LIFT JAPAN'S ECONOMY NEW YORK'S COMMODITY EXCHANGES PLAN TO RESUME TRADING TODAY DESPITE THE EXPLOSION AT THE WORLD TRADE CENTER WHERE THE EXCHANGES ARE HOUSED ALTHOUGH SOME TRADING WILL BEGIN LATER THAN USUAL OFFICIALS SAID EXCHANGE FACILITIES WEREN'T DAMAGED BY THE BLAST JAMES ROBINSON WILL RECEIVE A MINIMAL SEVERANCE PACKAGE FOR LEAVING AMERICAN EXPRESS SUGGESTING DIRECTORS REMAIN CAUTIOUS IN THE WAKE OF CRITICISM FROM INSTITUTIONAL INVESTORS THE ECONOMY GREW IN THE FOURTH QUARTER AT ITS STRONGEST PACE IN FIVE YEARS GROSS DOMESTIC PRODUCT EXPANDED AT AN ANNUAL RATE OF 48 BUT MANY ANALYSTS SAID CLINTON'S STIMULUS PLAN IS STILL NEEDED TO CREATE JOBS BUDGET DIRECTOR PANETTA SAID THE PLAN MUST CLEAR CONGRESS IN THE NEXT FIVE WEEKS IF IT IS TO GENERATE THE 500000 JOBS THE ADMINISTRATION PROMISED GM RAISED BASE PRICES BY AS MUCH AS 22 ON ALL OF ITS SATURN CARS AND ON CERTAIN CADILLAC GEO AND CHEVROLET MODELS THE MOVE IS DESIGNED TO BOOST PROFITS ON ITS STRONGERSELLING MODELS FIRST UNION AGREED TO ACQUIRE FIRST AMERICAN METRO FOR 453 MILLION FIRST AMERICAN HAS BEEN BUFFETED SINCE THE DISCLOSURE IN 1991 THAT A MAJORITY OF ITS STOCK WAS OWNED BY BCCI HOLDINGS LESLIE FAY EXPECTS TO REPORT A 1992 LOSS OF ABOUT 137 MILLION STEMMING FROM THE DISCLOSURE THAT ITS CONTROLLER INFLATED THE DRESSMAKER'S EARNINGS THE TREASURY LOWERED THE GUARANTEED MINIMUM RATE ON US SAVINGS BONDS TO 4 FROM 6 EFFECTIVE WITH SALES TODAY THE CHANGE REMOVES ONE OF THE MOST ATTRACTIVE INTEREST RATES AVAILABLE TO ORDINARY INVESTORS MACHINETOOL ORDERS FELL 15 TO 1753 MILLION IN JANUARY AMID CONCERN OVER THE ECONOMY AND THE PROPOSED INVESTMENT TAX CREDIT SIEMENS FILED A SUIT SEEKING NEARLY 150 MILLION FROM ATLANTIC RICHFIELD THE GERMAN FIRM SAID ARCO MISLED IT WHEN IT BOUGHT A SOLAR ENERGY UNIT AT&T SCIENTISTS ARE USING A NOVEL TECHNIQUE TO INCREASE THE CAPACITY OF FIBEROPTIC TRANSMISSION SYSTEMS JAPANESE BANKERS HAMMERED OUT A COMPROMISE PLAN TO BAIL OUT NIPPON HOUSING LOAN THE NATION'S LARGEST HOMEFINANCE COMPANY A CONSORTIUM OF BANKS WILL SHARE THE COSTS BONDS LEHMAN BROTHERS TREASURY INDEX 499612 OFF 104 COMMODITIES OIL 2055 OFF FIVE CENTS DOW JONES FUTURES INDEX 12471 OFF 022 SPOT INDEX 12502 OFF 013 DOLLAR 1182500 YEN UP 077 16455 MARKS UP 00098 9303010044 930301 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR JOB GROWTH THE CENTERPIECE OF ANY ECONOMIC RECOVERY IS FINALLY GAINING SOME VELOCITY AFTER MONTHS OF ANEMIC PERFORMANCE ALTHOUGH THE ECONOMY TECHNICALLY EMERGED FROM RECESSION IN THE SPRING OF 1991 EMPLOYERS UNTIL RECENTLY WERE RELUCTANT TO INCREASE HIRING BECAUSE OF THE RECOVERY'S FRAGILITY NONFARM PAYROLL JOBS WHICH GREW AT A 34000AMONTH RATE FOR THE FIRST 10 MONTHS OF 1992 ACCELERATED TO A 90000AMONTH RATE FROM NOVEMBER THROUGH JANUARY THE LABOR DEPARTMENT'S FEBRUARY EMPLOYMENT REPORT DUE OUT THIS WEEK SHOULD SHOW FURTHER IMPROVEMENT ON THE JOB FRONT WITH THE ECONOMY PICKING UP AN ADDITIONAL 125000 NONFARM PAYROLL JOBS SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP IT SHOULD BE FAIRLY BROADBASED WITH INCREASES IN CONSTRUCTION MANUFACTURING RETAIL AND BUSINESS SERVICES HE SAID THE UNEMPLOYMENT RATE WILL PROBABLY HOLD STEADY AT 71 MR HOFFMAN ADDED AND ALL INDICATIONS ARE THAT THE JOB EXPANSION WILL CONTINUE HE SAID THE AVERAGE MANUFACTURING WORKWEEK CLIMBED TO A 25YEAR HIGH IN JANUARY AND FACTORY OVERTIME HOURS ARE ON THE RISE BOTH SIGNS THAT MORE HIRING IS IN ORDER MR HOFFMAN SAID AS LONG AS ORDERS KEEP COMING IN TO THE FACTORIES THE JOB GROWTH SHOULD BE SUSTAINABLE HE SAID 9303010043 930301 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9303010042 930301 GERMAN RAW STEEL OUTPUT GAINS DUESSELDORF GERMAN PRODUCTION OF RAW STEEL SURGED 18 IN JANUARY FROM DECEMBER BUT WAS STILL DOWN 21 FROM THE YEAREARLIER MONTH ACCORDING TO THE GERMAN FEDERAL OFFICE OF STATISTICS IN JANUARY GERMAN STEEL MILLS PRODUCED 277 MILLION TONS OF RAW STEEL UP FROM THE DECEMBER LEVEL OF 235 MILLION TONS 9303010041 930301 BUSINESS BRIEF NATIONSBANK CORP FUND IS CREATED TO INVEST IN LOWINCOME HOUSING NATIONSBANK CORP SAID IT CREATED A 100 MILLION HOUSING FUND TO PROVIDE INVESTMENT MONEY TO BUILD 70 TO 100 LOWINCOME HOUSING DEVELOPMENTS NATIONS HOUSING FUND WOULD PROVIDE FOR THE CREATION OF AS MANY AS 4000 RENTAL UNITS IN THE COMMUNITIES WHERE THE BANK OPERATES THE COMPANY SAID NATIONSBANK OPERATES IN EIGHT SOUTHEASTERN STATES AS WELL AS TEXAS AND WASHINGTON DC THE COMPANY SAID THE FUND PENDING REGULATORY APPROVAL WILL BE MANAGED BY ENTERPRISE SOCIAL INVESTMENT CORP A SUBSIDIARY OF THE ENTERPRISE FOUNDATION NATIONS HOUSING FUND WILL INVEST IN HOUSING DEVELOPMENTS THAT QUALIFY FOR THE LOWINCOME HOUSING TAX CREDIT A FEDERAL PROGRAM OFFERING INVESTORS A CREDIT AGAINST FEDERAL INCOME TAXES FOR WORK RELATED TO LOWINCOME HOUSING NATIONSBANK BASED IN CHARLOTTE NC WILL BE THE SOLE LIMITED PARTNER IN THE FUND AS GENERAL PARTNER ENTERPRISE SOCIAL INVESTMENT WILL IDENTIFY PROJECTS ANALYZE CONSTRUCTION AND RENOVATION COSTS AND DIRECT PROJECT FUNDING 9303010040 930301 WHAT'S NEWS WORLDWIDE THE FBI DETERMINED THAT A BOMB CAUSED THE WORLD TRADE CENTER EXPLOSION FEDERAL AUTHORITIES SAID THE BOMB WHICH LEFT A FOURSTORY HOLE BELOW NEW YORK'S 110STORY TWIN TOWER COMPLEX MAY HAVE CONTAINED AS MUCH AS 1500 POUNDS OF EXPLOSIVES TERRORISM ANALYSTS SAID FRIDAY'S NOONTIME ATTACK HAD ALL THE MARKINGS OF CERTAIN MIDEAST TERROR GROUPS THE BOMB BELIEVED PLACED INSIDE A CAR IN AN UNDERGROUND PARKING LOT KILLED AT LEAST FIVE PEOPLE AND INJURED MORE THAN 1000 THE EXPLOSION KNOCKED OUT POWER WATER AND HEAT AND THOUSANDS OF WORKERS FLED DOWN SMOKEFILLED STAIRWELLS THE IMPACT ON MARKETS AND THE CITY'S ECONOMY IS EXPECTED TO BE SHORTLIVED BUT THE TOWERS THEMSELVES WILL BE CLOSED INDEFINITELY AND MOST OF THE AFFECTED BUSINESSES WERE TRYING TO FIND ALTERNATIVE OFFICES OVER THE WEEKEND YELTSIN ACCUSED RUSSIA'S CONSERVATIVE PARLIAMENT OF PUSHING THE COUNTRY TOWARD RUIN AND DECLARED THAT HE COULDN'T TOLERATE THE SITUATION ANY LONGER SEPARATELY THE PRESIDENT SAID RUSSIA SHOULD BE GRANTED SPECIAL POWERS TO STOP ETHNIC CONFLICTS ON THE TERRITORY OF THE FORMER SOVIET UNION A BOMB EXPLOSION KILLED 13 TRAIN PASSENGERS AND INJURED 12 IN THE SELFPROCLAIMED CHECHEN REPUBLIC OF SOUTHERN RUSSIA OFFICIALS SAID THE BOMB CONTAINED IN A PACKAGE WAS BLAMED ON TERRORISTS THE US MILITARY LAUNCHED A MAJOR RELIEF EFFORT IN BESIEGED EASTERN BOSNIA DROPPING A MILLION LEAFLETS THAT SAID HUMANITARIAN AID IS ON ITS WAY BUT BOSNIAN OFFICIALS SAID SOME LEAFLETS MISSED THEIR TARGETED VILLAGES SPARKING CONCERN ABOUT THE ACCURACY OF THE ANTICIPATED AIRDROP OF FOOD AND MEDICINE DAVID KESSLER WAS REAPPOINTED FDA COMMISSIONER SIGNALING THAT HIS HIGHPROFILE INDUSTRY CRACKDOWNS WILL CONTINUE OFFICIALS SAID FRIDAY ANOTHER HEALTH OFFICIAL BERNADINE HEALY ANNOUNCED HER RESIGNATION AS DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH A GUN BATTLE ERUPTED IN WACO TEXAS AS MORE THAN 100 OFFICERS TRIED TO ARREST THE LEADER OF AN ARMED RELIGIOUS CULT FOUR FEDERAL AGENTS AND TWO CULT MEMBERS WERE KILLED AND AT LEAST 15 OTHER AGENTS WERE INJURED AUTHORITIES ENTERED THE BRANCH DAVIDIANS' COMPOUND TO SEARCH FOR WEAPONS AND EXPLOSIVES US CITIES ARE RESEGREGATING A PRIVATE FOUNDATION SAID IN A REPORT ISSUED 25 YEARS AFTER THE KERNER COMMISSION WARNED THAT THE NATION WAS MOVING TOWARD A RACIALLY SEPARATE AND UNEQUAL SOCIETY THE MILTON S EISENHOWER FOUNDATION URGED INCREASED SPENDING FOR FAMILIES AND HOUSING REP HAROLD FORD IS EXPECTED TO GO ON TRIAL TODAY ON FEDERAL TAX AND BANK FRAUD CHARGES ALMOST THREE YEARS AFTER A JURY FAILED TO CONVICT HIM OF THE CHARGES IN A FIRST TRIAL FORD 47 TENNESSEE'S ONLY BLACK MEMBER OF CONGRESS IS ACCUSED OF TAKING 15 MILLION IN FRAUDULENT BANK LOANS PRESIDENT CLINTON IS PLANNING TO OUTLINE HIS PROPOSALS TODAY FOR RESTRUCTURING THE NATION'S STUDENT LOAN PROGRAM SO THAT COLLEGE STUDENTS WILL BE ABLE TO REPAY THEIR DEBTS THROUGH COMMUNITY SERVICE CLINTON IS SCHEDULED TO PRESENT HIS IDEAS FOR THE PROGRAM DURING A SPEECH IN NEW JERSEY ROCKETS AND SHELLS SMASHED INTO HOMES AND A BAZAAR IN KABUL KILLING OVER 60 PEOPLE AND WOUNDING 100 AS AFGHANISTAN'S TWO WARRING FACTIONS MET FOR PEACE TALKS THE GOVERNMENT BLAMED FUNDAMENTALIST LEADER HEKMATYAR FOR THE BOMBARDMENT BUT HE DENIED RESPONSIBILITY UN OFFICIALS GAVE ANGOLAN REBELS AN ULTIMATUM SAYING THEY MUST SEND REPRESENTATIVES TO A NEW ROUND OF PEACE TALKS IN ETHIOPIA BY TODAY OR THE NEGOTIATIONS WILL BE CALLED OFF REBEL NEGOTIATORS HAVE CLAIMED FIGHTING PREVENTED THEM FROM LEAVING THE ANGOLAN TOWN OF HUAMBO RIVAL SOMALI CLANS STONED EACH OTHER AND THREE SOMALIS WERE SHOT TO DEATH IN KISMAYU WHILE THE USLED COALITION STEPPED UP EFFORTS TO CALM THE PORT A DAY BEFORE THE UN SAID 14 FACTIONS AGREED ON AN AGENDA FOR A MARCH 15 PEACE CONFERENCE DIED LILLIAN GISH 99 VETERAN ACTRESS WHOSE 75YEAR CAREER BEGAN WITH SILENT FILMS AND STRETCHED TO TELEVISION SATURDAY IN NEW YORK RUBY KEELER 83 DANCER KNOWN FOR HER ROLES IN HOLLYWOOD MUSICALS OF THE 1930S IN RANCHO MIRAGE CALIF 9303010039 930301 THE OUTLOOK THE HIDDEN DANGERS OF INDUSTRIAL POLICY BY CRAIG FORMAN LONDON IS INDUSTRIAL POLICY A SYNONYM FOR PROTECTIONISM AND IS IT THE RIGHT POLICY TO BOOST US INDUSTRIES AND CREATE JOBS AT THE MOMENT THOSE QUESTIONS ARE THE FOCUS OF CONCERN AMONG EUROPEAN AND ASIAN POLITICAL LEADERS AND BUSINESSMEN AS THE CLINTON ADMINISTRATION TALKS INCREASINGLY TOUGH ON TRADE WITH THE EUROPEAN ECONOMY IN RECESSION AND JAPAN IN A SLUMP HIGHER TRADE BARRIERS IN THE US ARE THE LAST THING MOST INTERNATIONAL BUSINESSES WANT FARMERS FROM STRASBOURG TO SEOUL HAVE BEEN BURNING AMERICAN FLAGS JAPAN AND THE EUROPEAN COMMUNITY ARE FRANTICALLY SENDING TRADE MISSIONS TO WASHINGTON EC TRADE REPRESENTATIVE SIR LEON BRITTAN FEARS THAT FAILURE TO REACH AGREEMENT WITH THE US WILL BRING MAJOR RISKS FOR THE WORLD ECONOMY AND THE MOOD WAS SOMBER AT A RECENT MEETING OF SENIOR EUROPEAN INDUSTRIALISTS IN PARIS RECALLS A SENIOR EUROPEAN EXECUTIVE IF THE US WANTS A TRADE WAR HE SAYS IT WILL GET ONE WHAT DOES INDUSTRIAL POLICY HAVE TO DO WITH PROTECTIONISM THE WAY THE BRITISH AND OTHERS SEE IT THE MINUTE ANY ONE COUNTRY STARTS USING GOVERNMENT INDUSTRIAL POLICY AS AN INSTRUMENT TO INFLUENCE RESEARCH INVESTMENT OR OUTPUT VIA TAX CREDITS SUBSIDIES TARGETED DEVELOPMENT GRANTS AND SO ON IT CHANGES THE INCENTIVES AND PROFITABILITY OF SUCH BUSINESS BY LOWERING THE COSTS OF DEVELOPMENT OR PRODUCTION THE GOVERNMENT MAKES THE GOODS MORE COMPETITIVE ON INTERNATIONAL MARKETS THUS THEY SAY INDUSTRIAL POLICY RUNS COUNTER TO THE GOAL OF CREATING A MORELEVEL PLAYING FIELD IN TRADE WHICH IS THE OBJECTIVE OF FREETRADE TALKS LIKE THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE WAY CRITICS SEE IT FROM OVER HERE IF THE AMERICANS MORE ACTIVELY SUBSIDIZE THE PRODUCTION OF SAY A NEW GENERATION OF SUPERCOMPUTERS THEN THE GERMANS AND FRENCH HAVE TO THE TITFORTATTING EVENTUALLY LEADS TO ALL SORTS OF NONTARIFF BARRIERS TO FREE TRADE BRITISH PRIME MINISTER JOHN MAJOR WENT TO WASHINGTON ON WEDNESDAY WITH A WARNING GOVERNMENTS USUALLY GET IT WRONG IN ANY CASE WHEN THEY TRY TO MANAGE INDUSTRIAL POLICY TO ENCOURAGE SPECIFIC INDUSTRIES THE BRITISH SPEAK FROM EXPERIENCE WHEN THEY WERE TEMPTED BY INDUSTRIAL POLICY IN THE PAST THEY NEARLY WRECKED THEIR ECONOMY MORE TRADE BARRIERS WOULD ONLY MAKE THINGS WORSE LONDONBASED SECURITIES HOUSE CREDIT SUISSE FIRST BOSTON ESTIMATES THAT AS MUCH AS 15 TRILLION OR HALF THE WORLD'S ANNUAL TRADE COULD BE AFFECTED BY AN INCREASE IN INDUSTRIAL POLICY AND TRADE BARRIERS IN THE DEVELOPED WORLD AGAINST THAT BACKDROP BUSINESS PEOPLE ON BOTH SIDES OF THE ATLANTIC ARE HOPING THAT ECONOMIC TENSIONS WILL EASE IT DOESN'T HELP ANYBODY TO HAVE A TRADE WAR SAYS JUERGEN SCHREMPP A DIRECTOR OF GERMANY'S GIANT DAIMLERBENZ CONGLOMERATE AND CHAIRMAN OF ITS DEUTSCHE AEROSPACE AG SUBSIDIARY IT'S A PHYSICAL LAW ANY ACTION CAUSES AN EQUAL REACTION HE WARNS DEUTSCHE AEROSPACE IS A BIG SHAREHOLDER IN EUROPE'S AIRBUS INDUSTRIE CONSORTIUM BUT IT ALSO HAS US AND ASIAN UNITS MR SCHREMPP FIGURES HE WOULD LOSE FROM A RISE IN PROTECTIONISM ANYWHERE THERE ARE DOZENS OF WEAPONS IN THE INDUSTRIALPOLICY ARMORY RANGING FROM TAX BREAKS AND OTHER INCENTIVES TO DIRECT STATE AID BUT LIKE THE MILITARY ARMS RACE ESCALATION IS HARD TO AVOID ONCE YOU START IT IS EASIER TO JUSTIFY APPLYING BLUNTER INSTRUMENTS SUCH AS IMPORT RESTRICTIONS AND EXPORT CREDITS ALL THE MEASURES WILL AFFECT THE COUNTRY'S BALANCE OF TRADE BRITAIN IS A LIVING EXAMPLE OF WHAT CAN GO WRONG WHEN SUCH WEAPONS ARE USED IN THEIR EXPERIMENT WITH INDUSTRIAL POLICY IN THE 1970S THE BRITISH USED STATEFUNDED TECHNOLOGY SCHEMES DIRECT INVESTMENT INVESTMENTTAX REBATES AND OTHER MEASURES CURRENTLY BEING DEBATED IN THE US THE RESULT WAS INDUSTRIAL INEFFICIENCY LOW PRODUCTIVITY AND LAGGING LIVING STANDARDS ACCORDING TO ECONOMIST NICHOLAS CRAFTS A PROFESSOR AT THE UNIVERSITY OF WARWICK WHO HAS WRITTEN A BOOK ON THE SUBJECT HIS RESEARCH SHOWS BRITAIN'S INDUSTRIAL DECLINE WAS AT ITS MOST ACUTE WHEN THE GOVERNMENT WAS TRYING HARDEST TO HELP STRIKES HOBBLED THE RAILROADS THE MINES AND OTHER PUBLIC SERVICES HIGHTAX SOCIALISM WITH A TOP RATE ON UNEARNED INCOME OF 98 WAS SO DAMAGING THAT BRITAIN NEEDED AN INTERNATIONAL MONETARY FUND BAILOUT EVEN PRIME MINISTER MAJOR BELIEVES THE COUNTRY CONSISTENTLY STUMBLED WHEN IT TRIED TO PICK WINNERS A PARTICULARLY APT EXAMPLE IS IN NUCLEAR TECHNOLOGY BRITAIN WAS A PIONEER BUT IT LOST ITS EARLY LEAD BECAUSE OF ITS DETERMINATION TO PROMOTE ITS INDIGENOUS GASCOOLING TECHNOLOGY RATHER THAN TO ADOPT SUCH OVERSEAS ADVANCES AS THE PRESSURIZEDWATER REACTOR DESPITE YEARS OF SUBSIDIES AND GOVERNMENT CONTRACTS THE HOMEGROWN BRITISH TECHNOLOGY PROVED UNECONOMIC TO BUILD AND INEFFICIENT TO OPERATE RECALLS FORMER CHANCELLOR OF THE EXCHEQUER LORD LAWSON IN HIS RECENTLY PUBLISHED MEMOIRS BRITAIN SUBSEQUENTLY DID AWAY WITH MANY OF THE PROTECTIONS THOUGH BRITAIN LIKE MANY EC COUNTRIES IS STILL STRUGGLING TO EMERGE FROM RECESSION INDUSTRIAL PRODUCTIVITY IS UP AND THE COUNTRY HAS BECOME EUROPE'S MAGNET FOR FOREIGN INVESTMENT OF COURSE MAYBE THE CLINTON POLICY EXPERTS WILL SELECT BETTER WINNERS THAN THE BRITISH BUT PROF CRAFTS DOUBTS IT AND JOHN MAJOR UNDOUBTEDLY WOULD AGREE THE BRITISH LEADER BORE A MESSAGE PRESIDENT CLINTON IS INCREASINGLY LIKELY TO HEAR FROM OVERSEAS IF YOU WANT THE US TO GROW SAY NO TO MANAGED TRADE 9303010038 930301 EXPLOSIVE THEORY BOMBING IN NEW YORK BEARS SOME HALLMARKS OF MIDEAST TERRORISTS A MOTIVE REMAINS UNCLEAR IN BLAST THAT KILLED FIVE AND INJURED 1000 OR MORE BUSINESSES FIND NEW OFFICES BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOMB BLAST THAT DRILLED A FOURSTORY HOLE IN A PRIMARY SYMBOL OF AMERICAN COMMERCE WAS ELOQUENT IN ITS MESSAGE OF DREAD BUT AS THE LETHAL EXPLOSION AT THE WORLD TRADE CENTER REVERBERATED THROUGH THE NATIONAL PSYCHE EXPERTS ANALYZING THE BOMBING BEGAN TO MOVE TOWARD SOME SURPRISING THEORIES ABOUT WHO MAY HAVE DONE IT AND WHY THE ATTACK DOESN'T HAVE THE EARMARKS OF A LONE FANATIC AT WORK TERRORISM ANALYSTS SAY THE TREMENDOUS POWER OF THE BOMB ITS STRATEGIC PLACEMENT TO KNOCK OUT MUCH OF THE LIGHTING POWER AND COMMUNICATIONS IN THE WORLD TRADE CENTER AND ITS HUGE SUCCESS IN DISRUPTING LOWER MANHATTAN BEAR ALL THE CHARACTERISTICS OF A PROFESSIONAL TERRORIST OPERATION THIS WAS A WORLDCLASS HIT SAYS MIKE ACKERMAN A FORMER CENTRAL INTELLIGENCE AGENCY AGENT WHOSE MIAMI FIRM PROVIDES TERRORISM CONSULTING TO US CORPORATIONS BUT IF THAT IS THE CASE WHY HASN'T A TERRORIST ORGANIZATION MADE A CONVINCING CLAIM OF RESPONSIBILITY SOME EXPERTS SUGGEST THAT WHOEVER PLANTED THE BOMB MAY BE WITHHOLDING CLARIFICATION DELIBERATELY AS A WAY TO AMPLIFY DOUBT DISCORD AND CONFUSION THAT THEY SAY IS A HALLMARK OF SOME MIDDLE EASTERN TERROR ORGANIZATIONS PARTICULARLY GROUPS LINKED TO IRAN AND THOSE GROUPS HAVE EMERGED AS SOME ANALYSTS' TOP SUSPECTS SEVERAL EXPERTS ALSO DISCOUNTED SPECULATION THAT THE ATTACK MIGHT BE THE WORK OF SERBIANS ANGERED BY US POSITIONS ON THE FORMER YUGOSLAVIA PARTICULARLY PLANS TO AIRDROP FOOD AND MEDICINE THE AIRDROP PLANS WERE ANNOUNCED ONLY ABOUT A WEEK AGO AND IT USUALLY TAKES MONTHS TO PLAN A MAJOR TERRORIST BOMBING FIRST HUGE AMOUNTS OF EXPLOSIVES HAVE TO BE GATHERED SURREPTITIOUSLY TO PRODUCE A BLAST OF THIS MAGNITUDE IN ADDITION DETONATORS TIMERS AND THE RIGHT KIND OF WIRING HAVE TO BE SECRETLY OBTAINED AND PLANS FOR PLACEMENT OF THE BOMB HAVE TO BE WORKED OUT A DISSENTING VIEW WAS EXPRESSED BY VINCENT CANNISTRARO THE FORMER CHIEF OF COUNTERTERRORISM OPERATIONS AT THE CIA WHO CONSIDERS THE SERBIANS THE MOST LIKELY CULPRITS HE CONTENDS THAT THEY HAVE A LONG HISTORY OF THREATS AND FOLLOWING THROUGH ON THREATS AND ARGUES THAT PRESIDENT CLINTON HAS BEEN TALKING FOR MONTHS ABOUT TAKING STRONGER ACTION IN BOSNIA GIVING TERRORISTS PLENTY OF TIME TO GET READY FOR THIS OFFICIALLY LAWENFORCEMENT AUTHORITIES HAVEN'T IDENTIFIED FRIDAY'S EXPLOSION AS A TERRORIST ACT IT WAS ONLY YESTERDAY THAT THE FEDERAL BUREAU OF INVESTIGATION CONFIRMED THAT IT HAD BEEN CAUSED BY A BOMB THE FBI SAYS THE DEVICE MAY HAVE CONTAINED AS MUCH AS 1500 POUNDS OF EXPLOSIVES SUCH AS TNT OR DYNAMITE THE BOMB IS BELIEVED TO HAVE BEEN PLACED IN A CAR ON THE SECOND BASEMENT LEVEL OF AN UNDERGROUND PARKING LOT BENEATH THE VISTA HOTEL WHICH IS CONNECTED TO THE WORLD TRADE CENTER'S 110STORY TWIN TOWERS THE GUTS OF THE WORLD TRADE CENTER'S OPERATIONS INCLUDING ITS POWER SUPPLY POLICE STATION PUBLIC ADDRESS WATER AND HEATING SYSTEMS ALL WERE KNOCKED OUT BY THE EXPLOSION THOUSANDS OF TENANTS WERE EVACUATED DOWN SMOKEFILLED HALLWAYS WITHOUT BENEFIT OF LIGHT THE DEVICE WAS PLACED WHERE IT COULD DO MAXIMUM DAMAGE SAYS PORT AUTHORITY EXECUTIVE DIRECTOR STANLEY BREZENOFF THIS HAS LED SOME ANALYSTS TO SUSPECT THAT THE BOMBING WAS PRIMARILY AN ASSAULT ON PROPERTY IN SPITE OF ITS TERRIBLE HUMAN TOLL AT LEAST FIVE KILLED AND MORE THAN 1000 INJURED IF YOU WANTED TO SET OFF A PEOPLE BOMB' YOU WOULD LEAVE A SUITCASE FULL OF PLASTIC EXPLOSIVE IN GRAND CENTRAL STATION AT 515 PM RUSH HOUR AND YOU COULD EASILY KILL A COUPLE OF HUNDRED SAYS ONE TERRORISM ANALYST BY CONTRAST THE WORLD TRADE CENTER BOMB WENT OFF IN A PARKING GARAGE WHERE THERE WERE FEW PEOPLE AT NOONTIME THERE WAS SOME SPECULATION THAT THE BOMB WAS MEANT TO BRING THE BUILDINGS DOWN AND KILL THOUSANDS BUT ANALYSTS SAY THE ATTACKERS WERE PROBABLY SOPHISTICATED ENOUGH TO KNOW IT WOULD BE NEARLY IMPOSSIBLE TO COLLAPSE A MODERN STEEL STRUCTURE WITH JUST ONE BOMB IF INDEED IT WAS A CAR BOMB AUTHORITIES SAY THEY ARE FORTUNATE THAT THE GARAGE OPERATORS KEPT TRACK OF THE CARS THAT ENTERED AND LEFT THE LOT THAT INFORMATION PRESUMABLY INCLUDES THE LICENSE NUMBERS OF THE 200 CARS THAT WERE PARKED IN THE LOT AT THE TIME OF THE BLAST THE PARKING GARAGE KEPT PRETTY GOOD RECORDS OF COMINGS AND GOINGS SAYS JAMES FOX ASSISTANT FBI DIRECTOR IN CHARGE OF THE NEW YORK OFFICE OBVIOUSLY THAT'S GOING TO BE A BIG HELP TO US AWFUL AS THE BOMB'S TOLL WAS ITS IMPACT ON FINANCIAL MARKETS AND ON NEW YORK CITY'S ECONOMY IS EXPECTED TO BE SHORTLIVED THE BLAST FAILED TO SHUTTER THE WORLD TRADE CENTER'S MOST TECHNOLOGICALLY SENSITIVE BUSINESSES THE FIVE COMMODITIES EXCHANGES THAT DETERMINE PRICES FOR THE WORLD'S OIL COFFEE GOLD AND COTTON MARKETS THE EXCHANGES THE NEW YORK MERCANTILE EXCHANGE THE COMMODITIES EXCHANGE THE NEW YORK FUTURES EXCHANGE NEW YORK COTTON EXCHANGE AND THE COFFEE SUGAR AND COCOA EXCHANGE ARE HOUSED IN A SEPARATE BUILDING FROM THE TOWERS AND ARE EXPECTED TO OPEN FOR BUSINESS TODAY THE TOWERS THEMSELVES WILL REMAIN CLOSED INDEFINITELY HOWEVER AND MOST OF THE HUNDREDS OF BUSINESSES AFFECTED BY THE BLAST WERE SCRAMBLING TO FIND ALTERNATIVE OFFICES OVER THE WEEKEND SENIOR OFFICIALS OF DEAN WITTER DISCOVER INC THE CENTER'S LARGEST TENANT MET FOR AN EMERGENCY MEETING SATURDAY AT ONE OF THE COMPANY'S NEW JERSEY OFFICES TO MAP OUT A CONTINGENCY PLAN THE BROKERAGE FIRM WHICH EMPLOYS NEARLY 5000 WORKERS AT THE TRADE CENTER WILL BE USING SEVEN BACKUP OFFICES IN NEW YORK CITY AND TWO IN NEW JERSEY TO PERFORM ALL ITS FUNCTIONS FOR THE CUSTOMER IT WILL BE STRICTLY BUSINESS AS USUAL A COMPANY SPOKESMAN SAYS BOND DEALER CANTOR FITZGERALD SECURITIES CORP A UNIT OF CANTOR FITZGERALD INC WHICH ORDINARILY HAS 750 WORKERS IN THE CENTER WAS STILL SEARCHING FOR ALTERNATIVE OFFICE SPACE ON SUNDAY AN OFFICIAL SAYS THE COMPANY EXPECTS TO HAVE ITS BUSINESS UP AND RUNNING BY TODAY OR TOMORROW US OFFICIALS AND TERRORISM EXPERTS SAY THAT THERE ARE ABOUT A HALFDOZEN TERRORIST ORGANIZATIONS KNOWN TO HAVE THE EXPERTISE TO CARRY OUT A BOMBING ON THIS SCALE THAT LIST INCLUDES THE IRISH REPUBLICAN ARMY THE IRANIANLINKED TERRORIST GROUP HEZBOLLAH SEVERAL PALESTINIAN GROUPS PERU'S SENDERO LUMINOSO AND COLOMBIA'S MEDELLIN DRUG CARTEL AS FOR NATIONS OFFICIALS CITE IRAQ IRAN AND LIBYA AS THE THREE MOST LIKELY CANDIDATES THERE IS NO CONSENSUS ON WHICH ONE MAY HAVE BEEN RESPONSIBLE FOR THE BLAST ALL HOWEVER AGREE THAT THE IRA IS THE LEAST LIKELY CANDIDATE NEW YORK IS WHERE THEY RAISE THEIR MONEY SAYS A TOP US OFFICIAL WHY WOULD THEY MAKE TROUBLE THERE IRAQ AND LIBYA BOTH HAVE STRONG REASONS TO ATTACK THE US BUT EVEN STRONGER REASON TO FEAR AMERICAN REACTION AFTER PAN AM 103 AND THE SANCTIONS THE LIBYANS WOULD PROBABLY NOT WANT TO HAVE THEIR FINGERPRINTS ON ANYTHING AGAINST AMERICANS SAYS MR CANNISTRARO THE FORMER CIA OFFICIAL AS FOR IRAQ THEY'D HAVE TO KNOW THAT THE US REACTION WOULD BE MASSIVE HE SAYS MR CANNISTRARO IS IN THE MINORITY IN HIS VIEW THAT SERBS ARE LIKELY CANDIDATES BUT HE IS NOT ALONE XAVIER RAUFER TERRORISM EDITOR FOR THE FRENCH NEWSPAPER L'EXPRESS AND THE AUTHOR OF A NEW BOOK ON THE BALKANS SAYS WHAT THE CIA TENDS TO IGNORE IS THAT IF THE SERBS ARE INVOLVED THEY DON'T NEED TO CREATE A TERRORIST GROUP THEIR ARMY THE FORMER YUGOSLAV ARMY HAS BEEN IN THE BUSINESS OF TERRORISM SINCE THE 1950S TO HOLD OFF THE SOVIET ARMY MR RAUFER SAYS THE LATE YUGOSLAV LEADER MARSHAL TITO CREATED A SECRET ARMY OF PARTISAN TERRORISTS HE PLACED THEM IN CAPITALS ALL OVER EUROPE AND TOLD MOSCOW THAT THEY'D BE ACTIVATED IF THE SOVIET ARMY EVER MOVED AGAINST YUGOSLAVIA IF THEY WERE IN EUROPE WHY NOT IN THE US HE ASKS SENDERO LUMINOSO THE PERUVIAN GROUP HAS NO HISTORY OF WORKING INSIDE THE US SAYS CLAYTON MCMANAWAY A FORMER TERRORISM EXPERT IN THE REAGAN AND BUSH ADMINISTRATIONS HE CONSIDERS THE MIDDLE EAST ALWAYS A GOOD CANDIDATE ALTHOUGH IT IS STILL TOO SOON TO TELL ANY TIME THERE'S AN INCREASE IN PEACE PROSPECTS HISTORICALLY THERE'S BEEN AN INCREASE IN TERRORISM AGAINST THE US AGAINST ISRAEL AGAINST MODERATE ARAB STATES THAT APPEAR TO WANT TO MAKE PEACE AS FOR THE COLOMBIANS PABLO ESCOBAR LONGTIME HEAD OF THE MEDELLIN CARTEL WHO ESCAPED FROM PRISON LAST JULY HAS USED CAR BOMBS RECENTLY IN BOGOTA BUT IT IS CONSIDERED DOUBTFUL HE WOULD BE ATTACKING THE US RIGHT NOW THE INTERNATIONAL WAR ON DRUGS IS CLEARLY A MUCH LOWER PRIORITY FOR PRESIDENT CLINTON THAN IT WAS FOR PRESIDENT BUSH AND MR ESCOBAR'S TROUBLES THESE DAYS ARE MUCH CLOSER TO HOME THE BOMB WENT OFF AT 1218 PM ON FRIDAY AND THE FIRST PHONE CALL ATTEMPTING TO CLAIM RESPONSIBILITY FOR IT DIDN'T COME UNTIL 135 A CALL AT 215 WARNED FALSELY OF A BOMB IN THE EMPIRE STATE BUILDING LEADING TO ITS EVACUATION AND DOZENS OF OTHER CALLS CAME IN AFTER THAT THAT PATTERN OF CALLS SUGGESTS A BUNCH OF CRANKS AS ONE TERRORISM ANALYST PUT IT FBI INVESTIGATORS IN NEW YORK INITIALLY SUSPECTED THE BOMBING MIGHT BE LINKED TO A TRIAL JUST GETTING UNDER WAY IN BROOKLYN FEDERAL COURT NEARLY 20 YEARS AGO KHALID AL JAWARY PLANTED THREE CAR BOMBS IN NEW YORK CITY ACCORDING TO A FEDERAL INDICTMENT THE BOMBS WERE ALL DISCOVERED AND DEFUSED WITHOUT INJURIES BUT MR AL JAWARY SAID TO HAVE BEEN A MEMBER OF THE BLACK SEPTEMBER GROUP THAT KILLED ISRAELI ATHLETES AT THE OLYMPIC GAMES IN MUNICH GOT AWAY TWO YEARS AGO HE WAS ARRESTED IN ITALY AND EXTRADITED TO THE US FOR HIS TRIAL ALTHOUGH THERE WERE SUSPICIONS THAT PALESTINIAN TERRORISTS LINKED TO MR AL JAWARY MIGHT HAVE BOMBED THE TRADE CENTER SOME AUTHORITIES DISCOUNTED THAT IDEA CHARLES ROSE ASSISTANT US ATTORNEY WHO IS PROSECUTING THE CASE SAID IN AN INTERVIEW THAT I PERSONALLY DON'T BELIEVE IT HE AS WELL AS TERRORISM ANALYSTS POINTED OUT THAT PALESTINIAN TERRORISTS HAVE NO TRACK RECORD OF LINKING BOMBINGS TO COURT CASES ANALYSTS NOTED THAT LAST WEEK MARKED THE SECOND ANNIVERSARY OF THE US LIBERATION OF KUWAIT FOLLOWING THE IRAQI INVASION AS ONE OF THEM PUT IT SADDAM HUSSEIN WOULD LOVE TO HAVE PULLED THIS ONE OFF BUT BESIDES THE RISK OF MASSIVE RETALIATION BY THE US THAT THIS WOULD INVOLVE THE IRAQIS HAVE A HISTORY OF BUNGLING ATTEMPTS AT TERRORISM IN THE US TWO YEARS AGO FOR EXAMPLE AN IRAQI DIPLOMAT IN NEW YORK TRIED TO ARRANGE THE ASSASSINATION OF AN IRAQI DISSIDENT LIVING IN CALIFORNIA BUT THE FBI BY TAPPING PHONE LINES LEARNED OF THE SCHEME AND ARRESTED THE WOULDBE KILLER IN MODESTO CALIF BEFORE HE EVEN HAD A CHANCE TO DRAW HIS GUN THE IRAQIS ARE A BUNCH OF AMATEURS AS FAR AS TERRORISM IN THE US GOES SAYS MR ACKERMAN THE FORMER CIA AGENT BUT SUSPICIONS ABOUT TERRORIST GROUPS LINKED TO IRAN ARE RUNNING HIGH FOR ONE THING THE IRANIAN TERROR APPARATUS ONE OF THE LARGEST IN THE WORLD IS STILL ALIVE AND WELL AS ONE ANALYST PUTS IT WHILE THE CAPABILITIES OF OTHER GROUPS HAVE DECLINED IN ADDITION MANY ASPECTS OF THE TRADE CENTER BOMBING HAVE ALL THE EARMARKS OF IRANIANLINKED TERROR GROUPS SUCH AS HEZBOLLAH THESE GROUPS HAVE MADE A DEADLY SPECIALTY OF THE TACTIC OF MASSIVE CAR BOMBING USING IT REPEATEDLY THROUGHOUT THE WORLD IN ADDITION IRANIANLINKED GROUPS OFTEN TRY TO FUZZ UP AUTHORSHIP OF A PARTICULAR OPERATION IN ORDER TO ESCAPE RETRIBUTION AND THE BOMBING OF THE TRADE CENTER CLOSELY PARALLELS AN OPERATION IN BUENOS AIRES LAST YEAR WHEN THE ISRAELI EMBASSY WAS LARGELY DESTROYED BY A CAR BOMB KILLING SCORES OF PEOPLE THOUGH THE PERPETRATORS OF THAT BOMBING HAVEN'T BEEN CAUGHT TERRORISM ANALYSTS BLAME IRANIANLINKED GROUPS MY SUSPICION IS THAT THE IRANIANS ARE TESTING OUR NEW PRESIDENT SAYS MR ACKERMAN THE FORMER CIA AGENT HE NOTES THAT PRESIDENT REAGAN APPEARED STRONG BY BOMBING LIBYA AND PRESIDENT BUSH RECAPTURED KUWAIT BUT THE IRANIANS COULD BE TRYING TO MAKE PRESIDENT CLINTON APPEAR WEAK BY BOMBING THE TRADE CENTER AND GETTING AWAY WITH IT MR ACKERMAN SAYS SUCH TESTING FOR PSYCHOLOGICAL ADVANTAGE WOULD BE TYPICAL OF THE IRANIAN GROUPS HE ADDS THERE IS ANOTHER REASON SUSPICIONS FALL ON IRANLINKED GROUPS A BOMBING THEY ARE BELIEVED TO HAVE CARRIED OUT IN THE US WITH IMPUNITY THREE YEARS AGO THE WIFE OF THE COMMANDER OF THE USS VINCENNES THE US WARSHIP THAT SHOT DOWN AN IRANIAN AIRBUS JET WAS DRIVING HER VAN IN SAN DIEGO WHEN A BOMB BLEW THE VEHICLE UP SHE ESCAPED UNHURT FBI AGENTS STRONGLY SUSPECT AN IRANIAN TERRORIST GROUP SEEKING REVENGE FOR THE AIRBUS DOWNING BUT TO THIS DAY THE FBI HAS BEEN UNABLE TO MAKE ANY ARRESTS IN THAT CASE BUT FOR ALL THESE THEORIES ANALYSTS OF THIS KIND OF VIOLENCE DON'T RULE OUT ANY POSSIBILITY ALTOGETHER AT THIS EARLY STAGE BRIAN JENKINS SENIOR MANAGING DIRECTOR OF KROLL ASSOCIATES CORPORATE SECURITY CONSULTANTS RECALLS INVESTIGATING THE BOMBING OF A PAN AMERICAN WORLD AIRWAYS TERMINAL IN LOS ANGELES IN 1974 WE SPENT A LOT OF TIME TRYING TO FIGURE OUT WHO DID IT WHAT THEIR POLITICAL MOTIVES WERE HE SAYS IT TURNED OUT TO HAVE BEEN DONE BY A PSYCHOTIC WHOSE GRIEVANCE WAS THAT HE WAS ARRESTED SOME TIME AGO ON A MORALS CHARGE CARLA ANNE ROBBINS AND JOE DAVIDSON IN WASHINGTON AND NEIL BARSKY IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9303010037 930301 TECHNOLOGY & HEALTH SCIENTISTS AT AT&T'S BELL LABS DOUBLE RECORD FOR FIBEROPTIC TRANSMISSION BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS AT AT&T BELL LABORATORIES ARE USING A NOVEL FILTERING TECHNIQUE TO ACHIEVE LARGE GAINS IN THE CAPACITY OF FIBEROPTIC TRANSMISSION SYSTEMS THE MURRAY HILL NJ RESEARCH AND DEVELOPMENT ARM OF AMERICAN TELEPHONE & TELEGRAPH CO SAID A TEAM OF SCIENTISTS LED BY PHYSICIST LINN MOLLENAUER TRANSMITTED COMMUNICATIONS SIGNALS ERRORFREE OVER 13000 KILOMETERS AT 20 BILLION BITS 20 GIGABITS PER SECOND THAT IS DOUBLE THE PREVIOUS RECORD FOR LONGDISTANCE TRANSMISSION A KILOMETER IS 0625 MILE THE TRANSMISSIONS USE SOLITON WAVES WHICH DR MOLLENAUER HAS BEEN TRYING FOR MORE THAN A DECADE TO PERFECT FOR USE IN SUPER EFFICIENT FIBEROPTIC SYSTEMS BECAUSE SUCH ELECTRONICALLY INDUCED WAVES NEVER LOSE THEIR SHAPE AS THEY SHOOT THROUGH OPTICAL GLASS FIBER SIGNALING ERRORS ARE PRACTICALLY NONEXISTENT THIS OBVIATES THE NEED FOR VERY EXPENSIVE ERRORCORRECTION EQUIPMENT WHICH SLOWS DOWN TRANSMISSION SAID PETER ANDREKSON A PROFESSOR AT CHALMERS UNIVERSITY OF TECHNOLOGY GOTHENBURG SWEDEN SYSTEMS USING POWERFUL MICROSCOPIC LASERS AND WIRES OF EXTREMELY PURE GLASS WILL BE NEEDED IN THE NEXT CENTURY TO TRANSMIT VAST AMOUNTS OF VOICE CALLS DATA TRAFFIC AND HIGHDEFINITION TELEVISION ERRORFREE TO HOMES AND BUSINESSES THE LATEST EXPERIMENT SHOWS SOLITONS ARE REAL AND VERY USEFUL FOR LONGDISTANCE TRANSMISSION SAID DR ANDREKSON WHO DID FIBEROPTIC RESEARCH AT BELL LABS SEVERAL YEARS AGO THE MOST POWERFUL UNDERSEA SYSTEM NOW IN USE IS CAPABLE OF CARRYING 80000 PHONE CONVERSATIONS SIMULTANEOUSLY A 20GIGABIT SYSTEM COULD CARRY EIGHT MILLION OR 100 TIMES AS MANY CALLS AT ONCE DR MOLLENAUER SAID HIS EXPERIMENTUSING A 26KILOMETER LOOP OF GLASS FIBER LASERS AMPLIFIERS AND FILTERS PROVES SOLITONS ARE THE KEY TO FUTURE ULTRAHIGH CAPACITY TRANSMISSION IT SOLVES SO MANY PROBLEMS OF ULTRALONG DISTANCE TRANSMISSION IT'S EFFICIENT AND INEXPENSIVE BUT HE SAID MORE TESTING IS NEEDED DR MOLLENAUER'S TEAM ARRIVED AT THE FINAL TRANSMISSION STREAM IN STEPS FIRST THEY USED AN EXISTING 25 GIGABIT SYSTEM AND TIMEDIVISION MULTIPLEXING IN WHICH BITS FROM ONE STREAM OF DATA ARE CRAMMED INTO UNUSED SPACES BETWEEN BITS OF ANOTHER TRANSMISSION STREAM THIS INCREASED TRANSMISSION CAPACITY TO 10 GIGABITS THEY THEN USED WAVELENGTH DIVISION MULTIPLEXING SENDING DATA ON TWO WAVELENGTHS OR COLORS OF LIGHT TO DOUBLE CAPACITY AGAIN TO 20 GIGABITS THE KEY TO ACHIEVING ERRORFREE TRANSMISSION IS A NEW DEVICE A SLIDINGFREQUENCY GUIDING FILTER DR MOLLENAUER SAID WHEN LIGHT FROM LASERS IS AMPLIFIED AND BEAMED THROUGH THESE SIMPLE OPTICAL GLASS FILTERS HIS TEAM WAS ABLE TO REGULATE THE SPEED OF THE SOLITON WAVES IDEALLY BITS OF INFORMATION CARRIED ON THESE WAVES IN THE ONES AND ZEROS OF COMPUTER CODE SHOULD ARRIVE AT RECEIVING EQUIPMENT IN PERFECT SEQUENCE REDUCING DATA ERROR BUT WITHOUT THE FILTERS SOME OF THE BITS GET KNOCKED OUT OF SEQUENCE LEADING TO WHAT DR MOLLENAUER CALLED JITTER HE SAID FURTHER TESTING IS NEEDED BEFORE AT&T'S LONGDISTANCE BUSINESS AND OTHER CARRIERS CAN DECIDE WHETHER TO BEGIN LAYING THE CABLE SYSTEMS UNDER THE OCEANS MEANWHILE JAPANESE AND EUROPEAN RIVALS ARE RACING TO DEVELOP THEIR OWN SOLITON SYSTEMS NIPPON TELEGRAPH & TELEPHONE CORP SCIENTISTS ARE TRYING TO PERFECT HIGHSPEED SOLITON TRANSMISSION USING POWERFUL EXPENSIVE ELECTRONIC REGENERATORS BRITISH TELECOMMUNICATIONS PLC ALSO IS WORKING ON SOLITON RESEARCH 9303010036 930301 INTERNATIONAL DICKSON HONG KONG LUXURY GOODS COMPANY SEES GOLD IN OPENING STATUS' SHOPS IN CHINA BY MARCUS BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FOR DECADES ENTREPRENEURS HAVE LOOKED AT CHINA AS A MARKET WITH COLOSSAL POTENTIAL A BILLIONPLUS CONSUMERS OF EVERYTHING FROM REFRIGERATORS TO DISPOSABLE DIAPERS DICKSON CONCEPTS INTERNATIONAL LTD SEES A BIG MARKET TOO FOR STATUS THE HONG KONGBASED LUXURY GOODS COMPANY WHICH MAKES OR MARKETS GOODS UNDER SUCH BRANDS AS ST DUPONT CHARLES JOURDAN AND GUY LAROCHE AND OWNS LONDON'S FASHIONABLE HARVEY NICHOLS DEPARTMENT STORE THINKS CHINESE CONSUMERS ARE READY FOR HIGHQUALITY BRANDNAME GOODS AND CAN PAY FOR THEM NOT EVERYONE CAN AFFORD TO PAY 300 FOR A SUIT BUT ENOUGH OF THEM CAN SAYS DICKSON POON THE COMPANY'S 36YEAROLD CHAIRMAN FOUNDER AND 51 OWNER THEY ARE EVERY BIT AS STATUS CONSCIOUS AS THE WESTERN WORLD OR AS OTHER PARTS OF ASIA OPERATING ON THAT ASSUMPTION DICKSON CONCEPTS PLANS TO SET UP EXCLUSIVE SHOPS TO MARKET CLOTHING PRICEY WATCHES JEWELRY AND PERFUMES IN FIVE CHINESE CITIES TO KEEP PRICES DOWN THE COMPANY ALSO INTENDS TO TAKE ADVANTAGE OF CHINA'S CHEAP LABOR COSTS AND MAKE MANY OF THE GOODS IN MAJORITYOWNED JOINTVENTURE FACTORIES IT'S SETTING UP THE TOTAL COST OF ITS INVESTMENTS IS NOW PROJECTED AT ABOUT 25 MILLION WITH AN AVERAGE GROWTH RATE OVER THE LAST HALFDECADE OF MORE THAN 8 AND EXPORTS LAST YEAR THAT SOARED TO 85 BILLION CHINA'S ECONOMY IS A DYNAMO IN A DYNAMIC REGION ALTHOUGH CHINA'S PERCAPITA INCOME REMAINS STUCK AT LESS THAN 500 MANY PEOPLE HAVE BECOME WEALTHY AS A RESULT OF ECONOMIC REVISIONS OVER THE PAST DECADE AND LINGERING SOCIALIST PROTECTIONS SUCH AS ALMOSTFREE HOUSING AND INEXPENSIVE FOOD MEAN THAT EVEN MODEST INCOMES ARE LARGELY DISPOSABLE THERE ARE A LOT OF ENTREPRENEURS AND A LOT OF PEOPLE WITH CONNECTIONS OR RELATIVES IN HONG KONG SAYS SAMANTHA HO A RETAIL ANALYST IN HONG KONG WITH JARDINE FLEMING SECURITIES LTD IN SHANGHAI WHICH SHE VISITED LATE LAST YEAR SHE SAYS SHE WAS ASTONISHED TO DISCOVER THAT AT DEPARTMENT STORES CARRYING WESTERN PRODUCTS THE MORE EXPENSIVE THE GOODS THE BETTER THEY SELL ANALYSTS SAY THE STRATEGY OF MANUFACTURING AND SELLING LUXURY GOODS IN THE WORLD'S BIGGEST DEVELOPING COUNTRY PARTICULARLY A NOMINALLY COMMUNIST ONE IS A BOLD AND PERHAPS RISKY ONE BUT MR POON DISMISSES SUCH CONCERNS CAN YOU THINK OF ANY GOOD BUSINESS IN ANY COUNTRY THAT DIDN'T INVOLVE SOME RISK HE ASKS MR POON HAS EXPERIENCE TAKING RISKS AFTER A YEAR AS AN APPRENTICE AT SWISS WATCHMAKER CHOPARD & CIE HE RETURNED TO HONG KONG WHERE HE WAS RAISED AND BORROWED FIVE MILLION HONG KONG DOLLARS US646000 FROM HIS FATHER WHO RAN A CHAIN OF WATCH STORES TO START A NETWORK OF UPSCALE WATCH OUTLETS UP TO THEN WATCH MERCHANTS IN HONG KONG CONCENTRATED ON LOW PRICES NOT MARBLEANDCARPET DECOR HIS APPROACH PAID OFF AND IN 1986 HE TOOK HIS COMPANY PUBLIC HE SET UP STORES IN OTHER FASTMOVING ASIAN CENTERS INCLUDING TAIWAN AND SINGAPORE AND GOT THE RIGHTS TO OPEN BOUTIQUES SELLING PRODUCTS SUCH AS RALPH LAUREN CLOTHING BULGARI JEWELRY AND PIERRE BALMAIN MENSWEAR SINCE THEN MR POON HAS LEANED HEAVILY ON THE STOCK MARKET TO COUGH UP FUNDS TO ACQUIRE SOME OF THE LUXURY GOODS MAKERS WHOSE PRODUCTS HIS SHOPS STOCK IN 1987 HE BOUGHT ST DUPONT OF FRANCE FROM GILLETTE CO FOR 52 MILLION IN 1991 HE PAID 537 MILLION 768 MILLION FOR HARVEY NICHOLS ONE OF BRITAIN'S BESTKNOWN DEPARTMENT STORES LAST YEAR HE PAID 305 MILLION TO BUY OUT CHARLES JOURDAN HOLDING AG OF SWITZERLAND HE ALSO BOUGHT A CHAIN OF OPTICAL SHOPS IN HONG KONG THE ACQUISITION SPREE DISPLAYED THE SCOPE OF THE RISKS MR POON WAS TAKING WHEN THE COMPANY BOUGHT HARVEY NICHOLS FOR INSTANCE IT WAS COUNTING ON A RECOVERY IN THE BRITISH RETAIL MARKET THAT RECOVERY STILL HASN'T COME MOREOVER TO PAY FOR THE ACQUISITION DICKSON CONCEPTS STAGED A 141 MILLION RIGHTS ISSUE THAT SKEPTICAL SHAREHOLDERS SHUNNED LEAVING DICKSON CONCEPTS' INVESTMENT BANKERS TO PICK UP A THIRD OF THE SHARES THAT EXPERIENCE ALONG WITH PROBLEMS ASSOCIATED WITH AN EXPANSION INTO TAIWAN AND A TROUBLED HONG KONG ACQUISITION DRAGGED PROFIT DOWN IN THE YEARS ENDING MARCH 31 1991 AND 1992 STILL MR POON FIGURES THE LONGTERM TRENDS IN ASIA PARTICULARLY CHINA FAVOR HIS AGGRESSIVE APPROACH DICKSON CONCEPTS HAS TIED UP WITH FOREIGN COMPANIES TO GET INTO NEW MARKETS IN JAPAN IT HAS A JOINT VENTURE WITH MARUBENI TRADING GROUP TO DISTRIBUTE PRODUCTS AND IN THAILAND WITH ITS HIGH TARIFFS ON LUXURY IMPORTS IT HAS SUBCONTRACTED MANUFACTURING OF SOME ITEMS LOCALLY THE COMPANY IS TRYING A SIMILAR APPROACH IN CHINA WHICH ALSO HAS HIGH TARIFFS NOT ONLY WILL IT MARKET ITS PRODUCTS THERE BUT MR POON HAS SET UP JOINTVENTURE MANUFACTURING FACILITIES TO PRODUCE A RANGE OF NAMEBRAND PRODUCTS TARGETED AT THE CHINESE MARKET INSTEAD OF JUST SELLING ST DUPONT PENS AND WATCHES FOR INSTANCE HE WILL TRY TO CREATE A LINE OF CLOTHING PERFUMES AND OTHER PRODUCTS ON WHAT HE CALLS A TOTAL LIFESTYLE BASIS ANALYSTS THINK THAT APPROACH MAY MAKE SENSE FIFTEEN PRODUCTS WITH 15 NAMES ISN'T GOING TO HAVE THE SAME CLOUT IN A DEVELOPING MARKET AS 15 PRODUCTS WITH ONE NAME SAYS CHARLOTTE STEPHENS A RETAIL ANALYST AT CROSBY SECURITIES HONG KONG LTD MR POON IS HOPING THE CHINA ANGLE WILL MAKE HIS COMPANY MORE ATTRACTIVE TO INVESTORS AFTER ALL HE SAYS AS A HONG KONG CHINESE HE THINKS HE KNOWS WHAT CHINESE CONSUMERS WILL BUY AND HE LIKES STATUS SYMBOLS ASKED HOW MANY WATCHES HE OWNS HE SAYS HE'S LOST COUNT 9303010035 930301 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BROOKSTONE INC AN INITIAL OFFERING OF 2750000 OF ITS COMMON SHARES VIA ROBERTSON STEPHENS & CO AND ALEX BROWN & SONS INC FEDERALMOGUL CORP AN OFFERING OF 57 MILLION SHARES OF COMMON STOCK FIRST WESTERN CORP AN OFFERING OF 175 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND RAUSCHER PIERCE REFSNES INC UNION BANKSHARES LTD AN INITIAL OFFERING OF 600000 SHARES OF COMMON STOCK AND 6 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SUBORDINATED NOTES VIA DAIN BOSWORTH INC UNIVERSAL CORP AN OFFERING OF AS MANY AS 3220000 OF ITS COMMON SHARES VIA DILLON READ & CO AND WHEAT FIRST SECURITIES INC 9303010034 930301 US REVISES APPROACH TO AID FOR THAILAND PROGRAM LINKS BUSINESSES WITH EXPERTISE TO AREAS IN NEED OF TECHNOLOGY BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THE US IS REVAMPING PART OF ITS THAILAND AID PROGRAM IN AN EXPERIMENT THAT COULD HAVE CONSEQUENCES FOR AMERICAN ASSISTANCE EFFORTS IN OTHER RELATIVELY WELLOFF ASIAN COUNTRIES THE EXPERIMENT TRIES TO TAKE INTO ACCOUNT ECONOMIC CHANGES IN BOTH COUNTRIES BOOMING THAILAND NO LONGER NEEDS FINANCIAL HANDOUTS BUT RATHER FOREIGN EXPERTISE AND TECHNOLOGY AND THE US IS NOW SHORT ON AID MONEY BUT LONG ON BUSINESSES WITH EXPERTISE FOR SALE BUT LITTLE KNOWLEDGE OF FOREIGN MARKETS OR HOW TO TAP THEM THE EFFORT TO ACCOMMODATE THOSE DEVELOPMENTS WAS ON DISPLAY EARLIER LAST MONTH WHEN ONE OF THE FIRST PROJECTS FUNDED UNDER THE NEW PROGRAM OPENED ITS DOORS BANGKOK RIA GROUP A MEDICAL LABORATORY BEGAN PRODUCTION OF AN INEXPENSIVE 20MINUTE TEST FOR THE HUMAN IMMUNODEFICIENCY VIRUS WHICH LEADS TO AIDS UNTIL NOW TESTS FOR HIV THAT COULD BE DONE IN LESS THAN A DAY HAVE BEEN PROHIBITIVELY EXPENSIVE IN THAILAND THE US AGENCY FOR INTERNATIONAL DEVELOPMENT PAID 40000 TO TRANSFER THE TECHNOLOGY TO PRODUCE THE TEST KIT WHICH WAS DEVELOPED BY THE PROGRAM FOR APPROPRIATE TECHNOLOGY IN HEALTH A PRIVATE SEATTLEBASED ORGANIZATION WITH THE US AGENCY BEHIND HER BANGKOK RIA PRESIDENT NINLAWAN PICHAYAYOTHIN RAISED 1 MILLION LOCALLY TO BUILD A FACTORY OWEN WRIGLEY REGIONAL REPRESENTATIVE FOR THE SEATTLE PROGRAM SAYS THE DEAL WOULD HAVE BEEN DIFFICULT IF NOT IMPOSSIBLE WITHOUT THE AGENCY FOR INTERNATIONAL DEVELOPMENT IT IS THE PARTNERSHIP THAT MAKES THIS WORK HE SAYS THE PROJECT TOOK JUST NINE MONTHS TO PUT TOGETHER A REMARKABLY SHORT GESTATION COMPARED WITH CONVENTIONAL DEVELOPMENT EFFORTS ACCORDING TO A 20YEAR AGENCY VETERAN THOMAS H REESE THE AGENCY STILL OVERSEES TRADITIONAL PROJECTS THOSE WHICH AIM TO IMPROVE HEALTH CARE ALLEVIATE POVERTY AND HUNGER AND IMPROVE EDUCATION BUT THE US IS PHASING OUT FUNDING FOR THOSE BASICS IN THAILAND LEAVING THE THAI GOVERNMENT TO FILL IN WHERE POVERTY AND HUNGER REMAIN A PROBLEM MR REESE HOPES THE AGENCY CAN MAKE QUICK SURGICAL STRIKES TO HELP SOLVE TWO OF THAILAND'S MORE PRESSING PROBLEMS ACQUIRED IMMUNE DEFICIENCY SYNDROME AND THE ENVIRONMENT IF THE EFFORT SUCCEEDS IT MAY BE APPLIED TO AGENCY PROGRAMS IN OTHER RAPIDLY DEVELOPING ASIAN COUNTRIES ANOTHER AGENCY FOR INTERNATIONAL DEVELOPMENT PROJECT UNDER THE PROGRAM AIMS TO HELP BANGKOK DO SOMETHING ABOUT ITS POLLUTED CANALS WHICH REEK OF SEWAGE AND SPREAD DISEASE THE AGENCY BROUGHT TOGETHER CITY OFFICIALS AND INNOVATIVE MATERIAL SCIENCES INC OF KANSAS WHICH NEXT MONTH WILL BEGIN DREDGING WORK IN ONE OF THE CANALS IF THE COMPANY'S UNIQUE SYPHONING TECHNOLOGY WORKS AS EXPECTED THE CITY IS PREPARED TO OFFER A CONTRACT TO REPLACE SOME CONVENTIONAL DREDGING OPERATIONS RUN BY JAPANESE COMPANIES WE HAVE AN ARRAY OF EXPERTISE IN THE US IN THESE AREAS MR REESE SAYS THIS IS A UNIQUE EXAMPLE OF COOPERATION BETWEEN GOVERNMENT ACADEMIA THE PRIVATE SECTOR AND NONGOVERNMENTAL ORGANIZATIONS THE NEW PROGRAM ISN'T THE ONLY US INITIATIVE TO PROMOTE AMERICAN BUSINESS IN THAILAND EARLY LAST YEAR THE US AMBASSADOR JOINED HIS COUNTERPARTS FROM OTHER SOUTHEAST ASIAN COUNTRIES IN A FIVECITY TOUR OF THE US PROMOTING THE REGION'S TRADE AND INVESTMENT OPPORTUNITIES AN EXERCISE THAT MAY BE REPEATED THIS YEAR THE THAI GOVERNMENT WELCOMES THE EFFORTS ESPECIALLY WHERE THEY PROMOTE COOPERATION AND INVOLVE TECHNOLOGY TRANSFER MR REESE HAS OTHER IDEAS IN THE WORKS HE HOPES TO LINK SOME OF THE COUNTRY'S ENVIRONMENTALLY DAMAGED TOURIST SPOTS WITH AMERICAN CITIES THAT HAVE LAUNCHED SUCCESSFUL CLEANUP EFFORTS HE BELIEVES A COASTAL US CITY COULD PASS ALONG SOME PRACTICAL ADVICE TO PATTAYA THAILAND'S OVERDEVELOPED POLLUTED BEACH RESORT ANOTHER PROPOSAL WOULD TRY TO PROVIDE YOUNG WOMEN IN NORTHERN THAILAND WITH ALTERNATIVES TO PROSTITUTION AND THUS DIMINISH ONE OF THE PRIME CAUSES OF THE COUNTRY'S AIDS EPIDEMIC TWO US COMMUNICATIONS COMPANIES AMERICAN TELEGRAPH & TELEPHONE CORP AND NYNEX CORP'S NYNEX NETWORK SYSTEMS CO ARE INTERESTED IN RECRUITING THE WOMEN UNDER THE PLAN WHICH ISN'T FINAL YET US AGENCY FOR INTERNATIONAL DEVELOPMENT WOULD HELP SET UP A TRAINING PROGRAM AND THE TWO COMPANIES WOULD PROVIDE JOBS AT JOINT VENTURES EACH HAS WITH A THAI COMPANY 9303010033 930301 FIFTH THIRD BANCORP PURCHASE CINCINNATI FIFTH THIRD BANCORP SAID ITS FIFTH THIRD BANK UNIT COMPLETED THE PURCHASE OF SIX FIRST NATIONAL BANK OF DAYTON OFFICES IN THE GREATER CINCINNATI AREA THE ACQUISITION ANNOUNCED IN NOVEMBER IS FOR ALL OF THE DEPOSITS AND FACILITIES OF THE OFFICES FIFTH THIRD BANCORP HAS 102 BILLION IN ASSETS AND 259 BANKING CENTERS MOSTLY IN OHIO KENTUCKY AND INDIANA 9303010032 930301 TREASURY CUTS RATE ON SAVINGS BONDS TO 4 FROM 6 BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY DEPARTMENT IS CUTTING THE GUARANTEED MINIMUM RATE ON US SAVINGS BONDS TO 4 FROM 6 EFFECTIVE ON BONDS SOLD FROM TODAY THE TREASURY MADE THE MOVE CONSIDERED LONG OVERDUE BY SOME EXPERTS IN AN UNUSUAL SATURDAY ANNOUNCEMENT IT WILL REMOVE WHAT HAD BEEN ONE OF THE MOST ATTRACTIVE INTEREST RATES AVAILABLE TO ORDINARY INVESTORS THE TIMING AND NEARIMMEDIATE EFFECTIVE DATE OF THE ANNOUNCEMENT CAME AS SOMETHING OF A SURPRISE BECAUSE THE TREASURY TRADITIONALLY ANNOUNCES SUCH RATE CHANGES ON MAY 1 OR NOV 1 AND BECAUSE A DELAYED EFFECTIVE DATE ALSO WAS CONSIDERED CUSTOMARY A DELAYED EFFECTIVE DATE ON THE 1986 RATE CHANGE RESULTED IN A RUSH TO BUY SAVINGS BONDS BUT THE SAVINGS BOND RATE RECENTLY HAD BECOME SO FAR OUT OF KILTER WITH MARKET RATES THAT FURTHER DELAY WASN'T CONSIDERED FEASIBLE THE GUARANTEED MINIMUM RATE WAS LAST CHANGED IN 1986 WHEN IT WAS LOWERED TO 6 FROM 75 THE TREASURY ACKNOWLEDGED THE 6 MINIMUM RATE WAS AN ABOVEMARKET RATE SPURRING RECORD SALES OF SAVINGS BONDS AND CALLING INTO QUESTION THE COST EFFECTIVENESS OF THE SAVINGS BOND PROGRAM IT SAID THE LATEST CUT WAS TAKEN IN RESPONSE TO THE SUBSTANTIAL DECLINE IN MARKET INTEREST RATES OVER THE PAST YEAR OR SO TREASURY LAST YEAR SOLD A RECORD 176 BILLION OF SAVINGS BONDS SHATTERING THE 124 BILLION RECORD SET IN 1944 CONCERNS OVER COST EFFECTIVENESS HAVE BEEN HIGHLIGHTED BY THE TREASURY'S CURRENT REVIEW OF ITS DEBT SALES PRACTICES THE STUDY WAS ANNOUNCED LAST MONTH WHEN THE DEPARTMENT CUT BACK MODESTLY ON ITS ISSUANCE OF LONGERTERM SECURITIES IN THE NAME OF ACHIEVING SAVINGS ONE CRITIC OF THE SAVINGS BOND PROGRAM PETER ROBERTS PRESIDENT OF COLLEGE SAVINGS BANK PRINCETON NJ HAS BEEN ARGUING THAT THE TREASURY COULD SAVE AT LEAST 15 BILLION ANNUALLY BY CUTTING THE GUARANTEED MINIMUM RATE ON SAVINGS BONDS THE TREASURY OFFERED NO ESTIMATES OF REDUCED COSTS IN ANNOUNCING THE SAVINGS BOND CHANGE PRESIDENT CLINTON'S ECONOMIC PROGRAM ASSUMES 115 BILLION IN SAVINGS OVER FOUR YEARS FROM SHORTENING THE MATURITY OF TREASURY DEBT SECURITIES INTEREST PAID ON THE NEARLY 160 BILLION OF SAVINGS BONDS NOW OUTSTANDING WON'T CHANGE UNTIL THESE BONDS MATURE OR UNTIL THE END OF THEIR CURRENT EXTENDED MATURITY PERIODS THE TREASURY SAID INTEREST ON SERIES EE BONDS MAY BE EXEMPT FROM FEDERAL INCOME TAX IF THE PROCEEDS ARE USED FOR QUALIFIED EDUCATION EXPENSES AND THE HOLDER'S FAMILY INCOME FALLS WITHIN SPECIFIED LIMITS CONGRESS LAST YEAR VOTED TO BROADEN THE US TAX EXEMPTION BY REMOVING CURRENT LIMITS BUT THE BILL CONTAINING THE MEASURE WAS VETOED BY PRESIDENT BUSH THE PROPOSAL IS DEEMED LIKELY TO REEMERGE DURING THIS YEAR'S TAX DELIBERATIONS GIVEN THE WIDESPREAD SUPPORT MANIFESTED LAST YEAR THE TREASURY IN LATE 1991 AGREED TO WITHDRAW ADVERTISEMENTS TOUTING THESE BONDS AS TAX FREE FOR COLLEGE ACTING IN RESPONSE TO COMPLAINTS THAT ITS ADS WERE MISLEADING IN THAT THEY DIDN'T NOTE THE SIGNIFICANT RESTRICTIONS ON TAX EXEMPTION BUT THE TAX FREE FOR COLLEGE AD HAS REEMERGED RECENTLY 9303010031 930301 BUSINESS BRIEF WANG LABORATORIES INC ELECTION OF DIRECTORS IS SET FOR ANNUAL MEETING TODAY WANG LABORATORIES INC SAID IT ADJOURNED ITS ANNUAL MEETING TO TODAY AT 5 PM TO ELECT DIRECTORS MICHAEL MEE CHAIRMAN SAID THAT BOARD MEMBERS AT A MEETING BEFORE THE ANNUAL CONFERENCE HAD A VIGOROUS DISCUSSION OF THE PROPER SIZE OF THE 10 MEMBER BOARD AND FAILED TO SET A NUMBER AS REQUIRED FOR THE ELECTION A SPOKESMAN SAID HE COULDN'T COMMENT ON WHETHER THE BOARD WOULD MEET AGAIN BEFORE TODAY THREE MEMBERS OF THE FAMILY OF THE LOWELL MASS COMPANY'S LATE FOUNDER AN WANG ARE DIRECTORS AND ARE LISTED IN THE PROXY STATEMENT AS STANDING FOR ELECTION A WANG SPOKESMAN SAID THAT HE COULDN'T COMMENT ON WHETHER CHANGES ARE LIKELY WANG IS OPERATING UNDER CHAPTER 11 BANKRUPTCY CODE PROTECTION FROM CREDITORS 9303010030 930301 LEISURE & ARTS ON SPORTS BOARDS MEETING BY FREDERICK C KLEIN NEW YORK INDOOR TRACK AND FIELD IS TO REAL TRACK AND FIELD WHAT COUNTRY MUSIC IS TO REAL MUSIC BUT THAT DOESN'T MEAN IT CAN'T PRODUCE AN OCCASIONAL SNAPPY TUNE EAMONN COGHLAN THE IRISH NATIONAL TREASURE TAPPED ONE OUT HERE FRIDAY NIGHT RUNNING IN THE MASTERS MILE A SPECIAL EVENT AT THE USA/MOBIL INDOOR TRACK & FIELD CHAMPIONSHIPS HE RAN 11 LAPS AROUND THE PLYWOOD TRACK AT MADISON SQUARE GARDEN IN 40139 THAT'S THE FASTEST ANY HUMAN OVER AGE 40 HAS BEEN TIMED AT THE DISTANCE INDOORS OR OUT ALTHOUGH WHO KNOWS HOW FAST CAVEMEN RAN WHEN SABRETOOTHED TIGERS CHASED THEM A CROWD OF ABOUT 7000 PARED BY TRAFFIC TIEUPS OR THE FEAR THEREOF CAUSED BY THE EXPLOSION AT THE WORLD TRADE CENTER THAT AFTERNOON ATE UP COGHLAN'S PEFORMANCE WHOOPING AND HOLLERING ALL THE WAY NEW YORK LOVES IRISH ATHLETES GENERALLY AND COGHLAN IN PARTICULAR PARTLY BECAUSE HE USED TO LIVE IN THE VICINITY WHILE WORKING FOR THE IRISH TOURIST BOARD LIKE ANY PROPER GOTHAM SPORTS HERO HE HAD A NICKNAME THE CHAIRMAN OF THE BOARDS IN HIS RECENT YOUTH HE RAN FREQUENTLY HERE WINNING A LARGE HANDFUL OF WANAMAKER MILES AT THE MILLROSE GAMES AND US INDOOR TITLES HE SET THE WORLD INDOOR MILE RECORD 34978 IN 1983 IN A MEET AT THE MEADOWLANDS ARENA ACROSS THE HUDSON RIVER IN NEW JERSEY BUT HIS FRIDAY NIGHT PERFORMANCE AN IMPROVING THIRD IN HIS QUEST FOR GERIATRIC DISTINCTION DURING THE CURRENT SEASON WAS LITTLE LESS REMARKABLE HIS TIME WAS ONLY A TOUCH MORE THAN TWO SECONDS SLOWER THAN THE ONE HE RECORDED WINNING THE US INDOOR MILE IN 1987 AND ON FRIDAY HE RAN MOSTLY ALONE BECAUSE THE RUNNERUP THE KENYAN WILSON WAIGA FINISHED 10 SECONDS BEHIND HIM MOREOVER IT WAS ASTONISHING THAT ANYONE OF ANY AGE COULD RUN EVEN A NEARFOURMINUTE MILE ON THE SPIKEMARKED STEEPLY BANKED INPLACESUNEVEN OVAL THE GARDEN HAULS OUT FOR THESE AFFAIRS THE TRACK WAS NOT FAST BY ANY MEANS ON A BETTER SURFACE I'D HAVE GONE TWO SECONDS FASTER SAID THE SANDYHAIRED RUNNER HE PRONOUNCED HIMSELF VERY VERY VERY DISAPPOINTED OVER NOT BREAKING THE FOURMINUTE MARK BUT ADDED THAT HE WAS CONFIDENT TIME WAS NOT HIS ENEMY I'LL TRY IT AGAIN DURING THE OUTDOOR SEASON MAYBE AT THE NEW YORK GAMES IN MAY HE VOWED THE NEWS NO DOUBT DELIGHTED PROMOTERS OF THAT EVENT IT WAS FITTING THAT OLD EAMONN SHONE BECAUSE IN ONE OF THOSE IMMEDIATEPOSTOLYMPIC YEARS THAT ALWAYS ARE BETTER FOR SAYING GOODBYE TO FORMER HEROES THAN HELLO TO NEW ONES HIS COMPANION IN THE SPOTLIGHT WAS GREG FOSTER THE HURDLER AT AGE 34 THE THREETIME OUTDOOR WORLD CHAMPION AND SIXTIME WINNER HERE HAS SAID THAT THIS YEAR WOULD BE HIS LAST AS A COMPETITOR AND THE MEET'S SPONSORS RESPONDED BY PRESENTING HIM WITH A ROCKING CHAIR THAT WAS AFTER HE'D PLACED SECOND BY 05SECOND IN THE 60METER VERSION OF HIS SPECIALTY TO TONY DEES THE SILVER MEDALIST AT 110 METERS AT THE LAST OLYMPICS THE MEN'S HURDLES RACE BOASTED THE STRONGEST FIELD IN THE MEET INCLUDING BESIDES FOSTER AND DEES JACK PIERCE WHO WAS THIRD AT BARCELONA AND ARTHUR BLAKE MARK CREAR AND COURTNEY HAWKINS ALSO CONTESTANTS OF NOTE THIS WAS IN CONTRAST TO THE BEHAVIOR OF SUCH OLYMPIC STARS AS CARL LEWIS JACKIE JOYNERKERSEE MIKE POWELL QUINCY WATTS AND MICHAEL JOHNSON WHO DECLINED TO APPEAR EVEN FOR EXERCISE TRACK AND FIELD IS A SPORT WHOSE STARS SEEM TO SHOW UP WHEN IT SUITS THEM A FALSE START FOILED FOSTER'S PLAN FOR A QUICK BEGINNING IN FRIDAY'S RACE AND KICKING THE SECOND HURDLE DIDN'T HELP HIS CAUSE EITHER BUT HE RALLIED TO LOSE TO DEES BY JUST A STEP AND VOWED REVENGE WHEN THE TWO MEET AGAIN IN THE WORLD INDOORS NEXT MONTH IN TORONTO LATER FOSTER SAID HE WAS QUITTING NOT BECAUSE HE HAD TO BUT BECAUSE HE WANTED TO IF YOU LEAVE AT OR NEAR THE TOP PEOPLE ASK YOU WHY YOU'RE DOING IT THE BALDISH MAYWOOD ILL NATIVE POINTED OUT THAT'S BETTER THAN MAKING THE REASON OBVIOUS AMONG THE ENTRANTS WHO ASPIRE TO CONTINUING PROMINENCE THE BEST WERE GAIL DEVERS JOE FALCON AND MARIA MUTOLA DEVERS WHO MISSED A RARE SPRINTHURDLES GOLDMEDAL DOUBLE AT BARCELONA WHEN SHE FELL LEADING THE HURDLES PACK OVER THE LAST BARRIER SET AN AMERICAN INDOOR RECORD IN WINNING THE 60METER DASH IN 699 SECONDS SHE SAID THAT WHILE SHE'S NEVER ENJOYED RUNNING INDOORS SHE'S DOING IT THIS SEASON IN ORDER TO HELP HER STARTS IF SHE STARTS ANY FASTER THAN SHE DID FRIDAY SHE'LL LEAVE HER SHOES BEHIND THE WIRY FALCON WHO'S HAD AN INANDOUT CAREER AS A MILER WON THE MEN'S 3000 OVER AMONG OTHERS MOSES KIPTANUI OF KENYA THE WORLDRECORD HOLDER AT THE DISTANCE HE SAID THAT FROM NOW ON HE'D CONCENTRATE ON DISTANCE RACES ESPECIALLY 5000 METERS OUTDOORS MUTOLA A POWERFUL 20YEAROLD FROM MOZAMBIQUE BECAME THE FIRST WOMAN TO RUN 800 METERS IN LESS THAN TWO MINUTES INDOORS IN NEW YORK BY WINNING AT THAT DISTANCE IN 15963 MORE REMARKABLE YET THOUGH WAS THE VICTORY OF LYNN JENNINGS IN THE WOMEN'S 3000 METERS NOT SO MUCH FOR ITS FACT OR CLOCKING BUT FOR THE CIRCUMSTANCES SURROUNDING IT ON DEC 30 THE 31YEAROLD RESIDENT OF NEWMARKET NH WHO'S AMERICA'S FOREMOST DISTANCE RUNNER SHE FINISHED THIRD IN THE WOMEN'S 10000 METERS AT BARCELONA AND IS THE WORLD'S CROSSCOUNTRY CHAMP WAS IN ENGLAND DOUBLED UP WITH STOMACH PAIN ON DEC 31 SHE WAS IN A HOSPITAL HAVING HER APPENDIX REMOVED ON JAN 4 SHE SNUCK OUT OF BED BEFORE HER HUSBAND AROSE TO GO FOR A RUN THE FOLLOWING WEEK SHE WAS BACK ON HER NORMAL SCHEDULE OF RUNNING 65 MILES A WEEK I WAS CAREFUL OF COURSE I KNOW MY BODY AND BESIDES AN APPENDECTOMY IS NO BIG DEAL THESE DAYS SHE TOLD AN AUDIENCE OF REPORTERS INCLUDING THIS ONE WHO WAS FORCED TO SIT OUT AN ENTIRE SUMMER AT AGE 13 AFTER A SIMILAR OPERATION MANY YEARS AGO BRITISH MEDICINE THESE DAYS IS WONDERFUL I GUESS IRISH VITAMINS TOO 9303010029 930301 GE AIRCRAFT ENGINES REVEALS PLANS TO CUT 12 OF WORK FORCE EVENDALE OHIO CITING THE SHARP DOWNTURN IN THE COMMERCIAL AIRLINE INDUSTRY GE AIRCRAFT ENGINES SAID IT WOULD SHED MORE THAN 12 OF ITS 33000PERSON WORK FORCE THIS YEAR GE AIRCRAFT ENGINES A UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN SAID IT WOULD CUT 2300 SALARIED AND 1600 HOURLY POSITIONS THE COMPANY SAID 2500 JOBS WOULD BE CUT AT ITS BUSINESS HEADQUARTERS IN EVENDALE 700 AT ITS LYNN MASS SITE AND 700 OTHER WORKERS AT SMALLER FACILITIES THROUGHOUT THE US OUR COMMERCIAL CUSTOMERS HAVE SUFFERED UNPRECEDENTED LOSSES IN THE LAST THREE YEARS AND ENGINE AND SPARE PARTS ORDERS ARE DOWN SAID BRIAN ROWE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GE AIRCRAFT ENGINES THOSE DIFFICULTIES AND CONTINUALLY CHANGING CUSTOMER NEEDS REQUIRE THESE COST ACTIONS UNIONS REPRESENTING THE WORKERS INCLUDING THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND THE UNITED AUTO WORKERS COULDN'T BE REACHED FOR COMMENT GE AIRCRAFT ENGINES' ANNOUNCEMENT REPRESENTS THE LATEST IN A STRING OF AEROSPACE INDUSTRY LAYOFFS INCLUDING UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY ENGINE UNIT'S PLAN TO LAY OFF 6000 TO 7000 OF ITS 30000 WORKERS BY THE END OF 1994 AND BOEING CO'S INTENTION TO LAY OFF 28000 OF ITS 142000 EMPLOYEES BY THE END OF 1994 OF THE REDUCTIONS GE AIRCRAFT ENGINES SAID AS MANY AS POSSIBLE WILL TAKE PLACE THROUGH ATTRITION AND VOLUNTARY JOB ELIMINATION PROGRAMS THOSE WORKERS CUT WILL BE ELIGIBLE FOR A FULL RANGE OF BENEFITS AND OUTPLACEMENT ASSISTANCE A SPOKESWOMAN FOR GE AIRCRAFT ENGINES SAID COSTS RELATED TO THE LAYOFFS WOULDN'T HAVE ANY MATERIAL EFFECT ON FIRSTQUARTER EARNINGS 9303010028 930301 GLOBAL VIEW JAPAN'S ECONOMIC MACHINE NEEDS AN OVERHAUL BY GEORGE MELLOAN TOKYO ADMIRERS OF NATIONS THAT PERSUADE CITIZENS TO PUT SAVING ABOVE SPENDING HAVE LONG CITED JAPAN AS A PARAGON AND THE US AS A WASTREL BUT A CLOSE LOOK AT JAPAN'S DISTRESSED FINANCIAL SYSTEM TODAY SHOWS THAT SUPER SAVING CAN LEAD A NATION ASTRAY TOO JAPAN'S BIG MONEY HOUSES AND MULTINATIONALS NOW HAVE SQUANDERED A LARGE CHUNK OF THE CAPITAL THE COUNTRY'S CITIZENS WORKED SO HARD TO SAVE IN THE 1980S SOME WENT INTO STOCK AND LAND SPECULATION AND WAS LOST WHEN THOSE BUBBLES WERE DEFLATED HUGE QUANTITIES WERE EXPORTED BY MEANS OF JAPAN'S LARGE TRADE SURPLUSES EXPORTED CAPITAL ALSO BEGAN GOING INTO SPECULATIONS IN THE LATE 1980S AND SOME OF IT WAS LOST TOO INDEED A GOOD CASE CAN BE MADE THAT JAPAN HAS BEEN MORE WASTEFUL THAN THE US THROUGH THE INEFFICIENT USE BY ITS CORPORATIST MOVERS AND SHAKERS OF THIS THRIFTY NATION'S SAVINGS A SYSTEM RIGGED TO GENERATE SAVINGS SIMPLY PRODUCED MORE CAPITAL THAN COULD BE EMPLOYED EFFICIENTLY DURING THE GOGO LATE '80S AMERICANS MAY HAVE BEEN BIG SPENDERS BUT AT LEAST THEY GOT SOMETHING THE JAPANESE PEOPLE BY CONTRAST ARE BEGINNING TO WONDER WHAT THEY EARNED BY FORGOING CONSUMPTION AND ACCEPTING LOW RETURNS ON THEIR SAVINGS SOME ONETHIRD OF THE PEOPLE OF THIS RICH COUNTRY STILL LIVE IN SUBSTANDARD HOMES MANY OF THEM LACKING SUCH AMENITIES AS INDOOR PLUMBING THUS THE JAPANESE ARE BEGINNING TO TAKE A DIM VIEW OF THEIR COUNTRY'S POLITICS AND CORPORATIST SYSTEM OF ECONOMIC MANAGEMENT MEMBERS OF THE CLINTON ECONOMIC TEAM WHO WOULD LIKE TO EMULATE JAPAN INC HAD BETTER TAKE A CLOSER AND MORE UPTODATE LOOK FOR THAT MATTER THE MASTERMINDS OF JAPAN INC ARE THEMSELVES NURSING BUBBLE HANGOVERS AT THE CORE OF JAPANESE CORPORATISM ARE LARGE INDUSTRIAL FAMILIES KNOWN AS KEIRETSU THE MOST IMPORTANT ARE BUILT AROUND BIG BANKS WITH AN ELABORATE NETWORK OF CROSS SHAREHOLDINGS KNITTING TOGETHER BANKS MAJOR CORPORATIONS SERVICE COMPANIES AND THE SMALLER FIRMS THAT SUPPLY MAJOR INDUSTRIES THE MINISTRY OF FINANCE MOF AND THE BANK OF JAPAN TAKE IT UPON THEMSELVES TO TRY TO KEEP THESE CORPORATE FAMILIES AND PARTICULARLY THE BANKS AT THEIR CENTER WELL NOURISHED CHEAP CAPITAL AND A BANKBACKED ABILITY TO OPERATE AT VERY LOW PROFIT MARGINS ARE MAJOR REASONS WHY JAPANESE MANUFACTURERS HAVE BEEN SO SUCCESSFUL IN OVERSEAS MARKETS ALTHOUGH NO ONE SHOULD EVER UNDERESTIMATE THEIR SHEER MANUFACTURING PROFICIENCY BUT THE GLORY DAYS ARE ENDING JAPANESE WORKERS WERE MOSTLY CONTENT TO DO THEIR BIT FOR THE GLOBAL JAPANESE ECONOMIC EMPIRE SO LONG AS THEY THOUGHT IT WOULD YIELD FRUITS TO THEM EVENTUALLY BUT THE BUBBLE THE GROSS INEQUITIES IT CREATED BETWEEN THE LANDED AND THE LANDLESS THE COLLAPSE OF THE BUBBLE AND FINALLY THE REALIZATION THAT THE SYSTEM WAS FAR LESS SOUND THAN IT LOOKED HAVE CREATED A SOUR MOOD AMONG ORDINARY JAPANESE NEW REVELATIONS OF POLITICAL CORRUPTION HAVE DEEPENED THAT MOOD IT WILL DEEPEN FURTHER WHEN STRAPPED CORPORATIONS FIND IT NECESSARY AS SEEMS LIKELY TO START LAYING OFF WORKERS THEREBY BREAKING THE SOCIAL CONTRACT UNDER WHICH THE JAPANESE HAVE WORKED HARD AND ACCEPTED A MODEST LIVING STANDARD IN RETURN FOR A PROMISE OF LIFETIME JOB SECURITY THE JAPANESE BUBBLE WAS PHENOMENAL WHEN INDUSTRY BEGAN TO SATISFY ITS DOMESTIC CAPITAL INVESTMENT NEEDS IN THE '80S AND STARTED BUILDING CAPACITY ABROAD USING MONEY EARNED THERE MONEY BEGAN FLOWING INTO JAPANESE STOCK AND REAL ESTATE MARKETS BOTH OF WHICH WERE RATHER THIN FOR ACCOMMODATING THE LARGE AMOUNTS OF CAPITAL JAPAN WAS GENERATING PRICES IN BOTH MARKETS BEGAN TO CLIMB THE CLIMB STEEPENED AFTER THE YEN BEGAN RISING AGAINST THE DOLLAR IN 1985 AS CORPORATIONS THEMSELVES BEGAN DIVERTING MONEY INTO THESE MARKETS ORDINARY JAPANESE WERE QUICKLY PRICED OUT OF REAL ESTATE MARKETS IN MAJOR CENTERS STOCK PRICES TRIPLED FROM 1986 TO 1989 AT THAT POINT CENTRAL BANK GOVERNOR YASUSHI MIENO FELT IT WAS TIME TO BEGIN A CONTROLLED DEFLATION OF THE BUBBLE BEFORE IT BURST AND THE ECONOMY CRASHED ALSO THE GREAT PAPER WEALTH GAPS IT WAS CREATING HAD BECOME A SOCIAL PROBLEM BUT ONCE MR MIENO GOT THE BUBBLE SHRINKING IT DIDN'T WANT TO STOP STOCKS LAST YEAR HIT A LOW NOT FAR ABOVE THEIR 1986 LEVEL ALTHOUGH THEY HAVE SINCE REBOUNDED BANK BALANCE SHEETS ARE LOADED WITH SHARPLY DEVALUED REAL ESTATE CONSUMERS INSTEAD OF SPENDING BEGAN SAVING MORE WITH RESTORED HOPE OF ACCUMULATING DOWN PAYMENTS ON HOMES PARTLY FOR THAT REASON CONSUMER DEMAND HAS FALLEN SO JAPANESE COMPANIES ARE HAVING TO DEAL WITH STAGNANT DEMAND AND SHARPLY REDUCED EARNINGS ALONG WITH BALANCE SHEETS THAT HAVE BEEN MUCH DIMINISHED BY DEVALUED STOCK AND REAL INVESTMENTS THE BIG BANKS THAT FORM THE VITAL CORES OF THE KEIRETSU ARE FACED WITH A HUGE PILE OF NONPERFORMING DEBT WHICH MOF HAS KINDLY CHOSEN NOT TO BE NASTY ABOUT ALONG WITH THE SHRINKAGE IN THEIR OTHER ASSETS IN SHORT JAPAN'S LONGSTANDING PRACTICE OF RIGGING ECONOMIC INCENTIVES TO PUT THE CAPITAL NEEDS OF ITS BANKS AND INDUSTRIES AHEAD OF THE CONSUMPTION AND PERSONAL INVESTMENT NEEDS OF ITS WORKERS HAS FINALLY CAUGHT UP WITH IT MOF HAS TAKEN EMERGENCY MEASURES QUESTIONABLE ONES BY INVESTING PUBLIC PENSION FUNDS IN STOCKS TO TRY TO KEEP THE NIKKEI INDEX ABOVE 16000 AND PRESERVE AT LEAST SOME OF THE HIDDEN RESERVES CAPITAL GAINS ON STOCKS ON BANK BALANCE SHEETS IN OTHER WORDS NOW MOF IS SPECULATING LAST YEAR'S 89 BILLION GOVERNMENT BAILOUT PLAN CALLS FOR A SIGNIFICANT INVESTMENT IN REAL ESTATE FOR INFRASTRUCTURE PROJECTS BUT CYNICS SUSPECT THIS TOO IS MAINLY DESIGNED TO BE A MARKET PROP FOR REAL ESTATE YET ANOTHER SERIOUS PROBLEM CONFRONTS JAPANESE INDUSTRY DURING THE DAYS WHEN CAPITAL NEEDS WERE HIGH AND GROWTH EXPECTATIONS AS WELL MANY JAPANESE GIANTS AND SOONTOBE GIANTS ISSUED CONVERTIBLE DEBENTURES TO FINANCE THEIR EXPANSIONS THOSE DEBENTURES WILL BE MATURING IN LARGE QUANTITIES THIS YEAR BECOMING PART OF A LARGE AMOUNT OF MATURING DEBT GLOBALLY THAT WILL BURDEN GLOBAL CAPITAL MARKETS WITH REFINANCING NEEDS FEW HOLDERS OF JAPANESE CONVERTIBLES WILL WANT TO CONVERT TO STOCKS AND TAKE A LOSS JAPANESE BANKS ALREADY STRAPPED TO MEET GLOBAL CAPITAL STANDARDS WILL NOT BE EAGER TO LEND SO JAPANESE COMPANIES ACCUSTOMED TO CHEAP CAPITAL WILL HAVE TO REFINANCE WITH EXPENSIVE CAPITAL THAT WILL RAISE THEIR COSTS AND THEY WILL HAVE TO SHOW WIDER PROFIT MARGINS TO ATTRACT INVESTORS IN THE GLOBAL MARKETPLACE THE BOTTOM LINE IS THAT THEY WILL BE LESS COMPETITIVE THE MORAL A RIGGED ECONOMY USUALLY BACKFIRES ON ITS RIGGERS EVENTUALLY MAYBE IT'S BETTER TO KEEP POLICIES NEUTRAL AND LET CONSUMERS SORT THINGS OUT FOR THEMSELVES 9303010027 930301 PHYSICIANS INSURANCE CO OF OHIO PICKERINGTON OHIO PHYSICIANS INSURANCE CO OF OHIO SAID 1992 EARNINGS DUE TO BE REPORTED TODAY WILL BE REDUCED BY 68 MILLION THE COST OF INCREASING ITS LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES PICO PROVIDES MEDICAL PROFESSIONAL LIABILITY INSURANCE PRIMARILY TO DOCTORS AND SURGEONS 9303010026 930301 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMERICOLD CORP 125 MILLION OF FIRST MORTGAGE BONDS VIA FIRST BOSTON CORP ATHENA NEUROSCIENCES INC THREE MILLION COMMON SHARES VIA PAINEWEBBER INC CALDOR CORP 23 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO COMMUNITY HEALTH COMPUTING CORP INITIAL TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES DELMARVA POWER & LIGHT CO 29 MILLION COMMON SHARES VIA MERRILL LYNCH & CO ENERGY BIOSYSTEMS CORP INITIAL 24 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC EARLE M JORGENSEN CO 155 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP GENEVA STEEL 115 SENIOR NOTES VIA CITICORP SECURITIES MARKETS INC HILB ROGAL & HAMILTON CO 1610000 COMMON SHARES VIA ALEX BROWN INTERCITY PRODUCTS CORP 125 MILLION OF SENIOR SECURED NOTES VIA CITICORP SECURITIES LANDSTAR HOLDING CORP INITIAL 4750000 COMMON SHARES VIA ALEX BROWN MAGNETEK INC SECONDARY OFFERING OF SEVEN MILLION COMMON SHARES VIA SALOMON BROTHERS INC MAYFAIR SUPERMARKETS INC 75 MILLION OF SENIOR SUBORDINATED NOTES VIA BEAR STEARNS & CO PERSEPTIVE BIOSYSTEMS INC TWO MILLION COMMON SHARES VIA ALEX BROWN RALLY'S INC 75 MILLION OF SENIOR NOTES VIA PAINEWEBBER SENSORMEDICS CORP INITIAL 17 MILLION COMMON SHARES VIA LEHMAN BROTHERS INC SERAGEN INC 25 MILLION COMMON SHARES VIA GOLDMAN SACHS STERIS CORP TWO MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO S3 INC INITIAL TWO MILLION COMMON SHARES VIA LEHMAN BROTHERS US CAN CORP INITIAL 55 MILLION COMMON SHARES VIA SALOMON BROTHERS WYMANGORDON CO 80 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE MILWAUKEE WIS 948 MILLION VARIOUS SHORTTERM PROMISSORY NOTES VIA COMPETITIVE BID LOUISVILLE & JEFFERSON COUNTIES METROPOLITAN SEWER DISTRICT KY 120 MILLION SERIES 1993 SEWER AND DRAINAGE SYSTEM REVENUE BONDS VIA COMPETITIVE BID DALLAS TEXAS 450 MILLION WATERWORKS AND SEWER SYSTEM REVENUE REFUNDING BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO INC GROUP MASSACHUSETTS TURNPIKE AUTHORITY 380 MILLION REFUNDING REVENUE BONDS VIA A BEAR STEARNS GROUP MASSACHUSETTS WATER POLLUTION ABATEMENT TRUST 149 MILLION 1993 SERIES A REVENUE BONDS VIA A KIDDER PEABODY & CO INC GROUP METROPOLITAN WASHINGTON DC AIRPORT AUTHORITY 129 MILLION REVENUE AND REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP NEW YORK STATE HOUSING FINANCE AGENCY 765 MILLION 1993 SERIES A SERVICE CONTRACT OBLIGATION REVENUE BONDS AND 597 MILLION 1993 SERIES B FEDERALLY TAXABLE SERVICE CONTRACT OBLIGATION REVENUE BONDS VIA A MORGAN STANLEY & CO INC GROUP SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY OF CALIF 1 BILLION SENIORLIEN TOLL ROAD REVENUE BONDS AND 100 MILLION JUNIORLIEN BONDS VIA A FIRST BOSTON GROUP SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY 102 MILLION HOUSING REVENUE BONDS VIA A BEAR STEARNS GROUP SUFFOLK COUNTY NY 187 MILLION PUBLIC IMPROVEMENT REFUNDING BONDS VIA A DILLON READ & CO INC GROUP TRIBOROUGH BRIDGE & TUNNEL AUTHORITY 5588 MILLION SERIES 1993A GENERAL PURPOSE REVENUE BONDS VIA A DILLON READ GROUP 9303010025 930301 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CITICORP 250 MILLION OF 7 1/8 SUBORDINATED NOTES DUE JUNE 1 2003 WAS PRICED AT 99407 TO YIELD 721 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 120 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BANKAMERICA CORP 250 MILLION OF 685 SUBORDINATED NOTES DUE MARCH 1 2003 WAS PRICED AT 99855 TO YIELD 687 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO DEL WEBB CORP 100 MILLION OF 9 3/4 SENIOR SUBORDINATED NOTES DUE MARCH 1 2003 WAS PRICED AT 99213 TO YIELD 9875 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO THE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P COMERICA INC 100 MILLION OF 6 7/8 SUBORDINATED BANK NOTES DUE MARCH 1 2008 WAS PRICED AT 99599 TO YIELD 6918 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 91 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS ENHANCE FINANCIAL SERVICES GROUP INC 75 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2003 WAS PRICED AT PAR TO YIELD 675 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SOUTHERN CALIF PUBLIC POWER AUTHORITY 3685 MILLION POWER PROJECT BOND ISSUE HAS BEEN PRICED BY A FIRST BOSTON CORP GROUP INCLUDED IN THE OFFERING ARE 2703 MILLION 1993 SERIES A POWER PROJECT REVENUE REFUNDING BONDS THOSE FIXEDRATE BONDS HAVE BEEN PRICED TO YIELD FROM 260 IN 1994 TO 560 IN 2012 DERIVATIVE SECURITIES COMPRISE THE BALANCE OF THE OFFERING THERE ARE 491 MILLION SERIES 1993 AUCTION RATE SECURITIES AND 491 MILLION SERIES 1993 INVERSE FLOATERS BOTH THOSE DERIVATIVES HAVE 2012 AND 2017 MATURITIES THE YIELD FOR THE AUCTION RATE SECURITIES WILL BE RESET AT SEMIANNUAL AUCTIONS FOLLOWING THOSE AUCTIONS THE YIELD FOR THE INVERSE FLOATERS WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE YIELD FOR THE AUCTION RATE SECURITIES INVERSE FLOATERS DUE IN 2012 HAVE AN UNDERLYING COUPON OF 535 AND A BOND EQUIVALENT YIELD OF 792 FIRST BOSTON SAID INVERSE FLOATERS DUE IN 2017 HAVE AN UNDERLYING COUPON OF 545 AND A BOND EQUIVALENT YIELD OF 812 IN CONJUNCTION WITH THE ISSUE THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HAS SOLD 70 MILLION OF MUNICIPAL CALL RIGHTS FOR FIXEDRATE BONDS DUE IN 2017 THOSE CALL RIGHTS GIVE INVESTORS RATHER THAN THE POWER AUTHORITY THE RIGHT TO CALL THE BONDS BEFORE THEIR MATURITY BOTH MOODY'S AND S&P HAVE RATED THE FIXEDRATE BONDS DOUBLEA THE AUCTION RATE SECURITIES AND INVERSE FLOATERS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 132 BILLION OF SERIES 199338 REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES INCREASED FROM 660 MILLION IS BEING OFFERED BY DONALDSON LUFKIN & JENRETTE THE ISSUE IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 690 MILLION SERIES 1993G13 REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES INCREASED FROM 400 MILLION IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING IS BACKED BY 8 1/2 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 5655 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G15 IS BACKED BY 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 199342 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 775 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 28505 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 199339 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 820 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS NATHAN'S FAMOUS INC AN INITIAL OFFERING OF 15 MILLION SHARES WAS PRICED AT 9 EACH THROUGH UNDERWRITERS LED BY LADDENBURG THALMANN & CO INC THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 8 AND 10 A SHARE OSHAP TECHNOLOGIES LTD MAJORITYOWNED SUBSIDIARY TECNOMATIX TECHNOLOGIES LTD HAS BEGUN ITS PUBLIC OFFERING OF 28 MILLION ORDINARY SHARES AT 12 A SHARE THE COMPANY SAID TWO MILLION ARE NEW SHARES OFFERED BY TECNOMATIX TECHNOLOGIES AND 800000 ARE EXISTING SHARES OFFERED BY VENTURE CAPITAL INVESTORS IN ADDITION THE SELLING SHAREHOLDERS HAVE GRANTED THE US UNDERWRITERS AND THE INTERNATIONAL MANAGERS AN OPTION TO PURCHASE UP TO 420000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS IF ANY SYNETIC INC AN OFFERING OF 14 MILLION COMMON SHARES WAS PRICED AT 17 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ORIGINALLY THE COMPANY HAD FILED TO OFFER 178 MILLION SHARES THE NEW OFFERING SIZE IS AFTER THE EFFECT OF A TWOFORONE STOCK SPLIT PAID FRIDAY SWISS BANK CORP CAYMAN ISLANDS LTD SWISS PARENT 250 MILLION CANADIAN OF 7 1/4 4 EUROBONDS DUE APRIL 8 1999 AT ISSUE PRICE 101005 VIA SWISS BANK CORP INTERNATIONAL REOFFERED AT 99405 TO YIELD 738 MARGIN 50 BASIS POINTS ABOVE CANADIAN GOVERNMENT'S 6 1/4 DUE FEBRUARY 1998 GUARANTOR SWISS BANK CORP SWEDISH EXPORT CREDIT SWEDISH AGENCY 200 MILLION POUNDS OF 8 PARTLYPAID EUROBONDS DUE MARCH 25 2003 AT ISSUE PRICE 10092 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9932 10 IS DUE MARCH 25 1993 WITH REMAINDER DUE A YEAR LATER WOOLWICH BUILDING SOCIETY UK 100MILLION POUNDS OF CALLABLE SUBORDINATED 10 1/8 EUROBONDS DUE DEC 21 2017 AT ISSUE PRICE 100934 VIA BARCLAYS DE ZOETE WEDD AND BARING BROTHERS REOFFERED AT 99134 YIELD TO CALL OPTION DATE IN DECEMBER 2012 1022 MARGIN 155 BASIS POINTS ABOVE UK GOVERNMENT'S 9S DUE 2012 ON CALL DATE BORROWER HAS OPTION TO REDEEM BONDS AT PAR OR REFIX INTEREST AT HIGHER OF 10 1/8 COUPON OR 250 BASIS POINTS ABOVE THEN PREVAILING FIVEYEAR GILT CREDIT LOCAL DE FRANCE FRANCE AGENCY 1 BILLION FRENCH FRANCS OF ZEROCOUPON EUROBONDS DUE JUNE 5 2007 VIA PARIBAS LTD REOFFER PRICE 3437 TO YIELD 768 MARGIN 10 BASIS POINTS ABOVE INTERPOLATED FRENCH TREASURY CURVE BONDS WILL TRADE INTERCHANGEABLY WITH 3 BILLION FRANCS OF IDENTICAL OUTSTANDING BONDS PT HANJAYA MANBALA SAMPOERNA INDONESIA 30 MILLION OF 9 EUROBONDS DUE MARCH 12 1996 ISSUED AT 99 5/8 VIA CHASE INVESTMENT BANK LTD SEMIANNUAL YIELD 9335 AT ISSUE PRICE A MARGIN OF ABOUT 475 BASIS POINTS ABOVE THE US TREASURY'S 4 5/8 BOND DUE FEBRUARY 1996 AT LAUNCH 9303010024 930301 AMERICAN AIR TO REMOVE 25 PLANES FROM ITS FLEET FORT WORTH TEXAS AMERICAN AIRLINES SAID IT WILL REMOVE 25 WIDEBODY JETS FROM ITS FLEET IN A COSTCUTTING MOVE LIKELY TO INCLUDE THE ELIMINATION OF SOME UNPROFITABLE ROUTES AND POSSIBLY LAYOFFS THE AMR CORP UNIT ISN'T LIKELY TO IMPLEMENT THE CHANGE IN ITS FLEET FOR A FEW MONTHS BECAUSE EXECUTIVES STILL HAVEN'T DECIDED WHAT TYPE OF PLANE THEY WILL CUT CURRENTLY THEY ARE RUNNING STUDIES TO DETERMINE WHETHER IT'S MORE EXPENSIVE TO GROUND PART OF THEIR MCDONNELL DOUGLAS CO DC10 FLEET WHICH AMERICAN OWNS OR TO RETURN THE 25 AIRBUS INDUSTRIE A300S THE AIRLINE LEASES AMERICAN HAS 676 JETS IN ITS FLEET INCLUDING 166 WIDEBODIES OF THOSE 35 ARE A300S AND 59 ARE DC10S ANY DECISION REGARDING A FLEET CUTBACK OR CHANGE HAS A DOMINO EFFECT AS AIRCRAFT PULLED FROM SOME ROUTES HAVE TO BE REPLACED BY OTHER SMALLER PLANES WHICH IN TURN HAVE TO BE SUBSTITUTED BY STILL OTHERS THE RESULT IS LIKELY TO BE LESS CAPACITY ON SOME ROUTES IF NOT THE ELIMINATION OF SOME WHILE AMERICAN HASN'T SAID ANYTHING ABOUT LAYOFFS THE AIRLINE SAID WHEN IT WAS ADDING PLANES FIVE YEARS AGO THAT EACH NEW JET ADDED 50 WORKERS TO ITS PAYROLL LIKE THE REST OF THE INDUSTRY AMERICAN HAS BEEN STRUGGLING TO REMAIN IN THE BLACK RECENTLY CHAIRMAN ROBERT L CRANDALL SAID THE AIRLINE WILL CUT UNPROFITABLE ROUTES BEEF UP ITS PROFITABLE ONES AND MOVE INTO MORE FEEBASED AIRLINE MANAGEMENT SERVICES IT IS LOOKING AT WHETHER TO CLOSE SOME OF ITS HUBS ALTHOUGH LAST WEEK IT SAID IT WAS DELAYING A DECISION ON WHAT TO DO ABOUT ITS RALEIGHDURHAM NC HUB FOR 18 MONTHS 9303010023 930301 BUSINESS BRIEF EMPRESA NACIONAL DE ELECTRICIDAD SA SPANISH FIRM'S NET PROFIT ADVANCED 14 DURING 1992 EMPRESA NACIONAL DE ELECTRICIDAD SA SAID CONSOLIDATED NET PROFIT ROSE 14 IN 1992 TO 10630 BILLION PESETAS 9031 MILLION FROM 9356 BILLION PESETAS IN 1991 REVENUE GAINED 29 TO 71905 BILLION PESETAS FROM 69887 BILLION PESETAS PERSHARE EARNINGS GREW TO 40883 PESETAS FROM 35984 PESETAS SPAIN'S STATERUN ELECTRICITY UTILITY SAID CASH FLOW CLIMBED 34 IN 1992 TO 23350 BILLION PESETAS THE COMPANY DIDN'T PROVIDE A YEAREARLIER FIGURE CAPITAL INVESTMENT SLIPPED 31 TO 8532 BILLION PESETAS WHILE FINANCIAL INVESTMENT DROPPED 79 TO 3156 BILLION PESETAS FROM 14937 BILLION PESETAS IN 1991 THE COMPANY SAID 9303010021 930301 BRIDGESTONE 1992 PROFIT SOARED FIRESTONE UNIT SWUNG TO PROFITABILITY SPECIAL TO THE WALL STREET JOURNAL TOKYO DESPITE A DROP IN SALES BRIDGESTONE CORP A JAPANESE TIRE MAKER SAID CONSOLIDATED PROFIT SOARED TO 2840 BILLION YEN 242 MILLION IN 1992 FROM 747 BILLION YEN IN THE PRIOR YEAR HELPED BY THE RETURN TO PROFITABILITY OF ITS US SUBSIDIARY FIRESTONE INC PARENT COMPANY SALES WERE DOWN 11 TO 1745 TRILLION YEN 149 BILLION FROM 1764 TRILLION YEN IN 1991 PRETAX PROFIT SHOWED A 45 GAIN TO 7947 BILLION YEN SEPARATELY BRIDGESTONE SAID IT NAMED YOICHIRO KAIZAKI PRESIDENT EFFECTIVE MARCH 30 TO SUCCEED AKIRA YEIRI WHO IS RETIRING THE COMPANY ALSO SAID IT NAMED MASATOSHI ONO SENIOR VICE PRESIDENT MR ONO WILL CONTINUE TO SERVE AS CHIEF EXECUTIVE OF BRIDGESTONE/FIRESTONE INC WITH THE OUTLOOK FOR AUTO SALES STILL SHAKY AS THE NEW YEAR BEGINS BRIDGESTONE PREDICTED CONSOLIDATED PRETAX PROFIT WILL EGDE UP ONLY 067 TO 80 BILLION YEN DURING 1993 IT EXPECTS 1993 NET INCOME TO JUMP 30 TO 37 BILLION YEN WHILE SALES ARE SEEN EDGING UP 028 TO 1750 TRILLION YEN BRIDGESTONE SAID COSTCUTTING EFFORTS OF FIRESTONE IN THE US HELPED THAT SUBSIDIARY POST A PROFIT DURING THE SECOND HALF FOR THE FIRST TIME SINCE BRIDGESTONE ACQUIRED THE COMPANY IN 1988 THOUGH BRIDGESTONE'S CONSOLIDATED SALES FELL BY 1872 BILLION YEN COST OF MATERIALS AND PRODUCTION FELL BY 3616 BILLION YEN HELPING BRIDGESTONE'S GROUP OPERATING PROFIT JUMP BY 2094 BILLION YEN OR 21 FROM THE YEAR BEFORE THE COMPANY'S EXTRAORDINARY PROFIT FELL TO ZERO FROM 3613 BILLION YEN THE YEAR BEFORE WHEN BRIDGESTONE SOLD ABOUT 32 BILLION YEN OF FIXED ASSETS SUCH AS REAL ESTATE BUT EXTRAORDINARY LOSSES ALSO FELL BY 14 BILLION YEN AND THE COMPANY'S TAX BURDEN DROPPED 13 BILLION YEN ALLOWING THE 280 SURGE IN PROFITS 9303010020 930301 ABREAST OF THE MARKET STOCKS ZAPPED BY BOLTS OF CLINTON SHOCK' ARE QUICKLY DUMPED BY SKITTISH INVESTORS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A NEW RISK IS STALKING THE STOCK MARKET CALL IT CLINTON SHOCK SPOOKED BY THE FIRST ACTIVIST DEMOCRAT TO OCCUPY THE WHITE HOUSE IN MORE THAN A DECADE INVESTORS ARE PUMMELING STOCKS OF COMPANIES OR ENTIRE INDUSTRIES AT THE SLIGHTEST HINT OF SOME NEW PRESIDENTIAL INITIATIVE THAT COULD LAY WASTE TO THEIR PROFITS ON FEB 18 SHARES OF STUDENT LOAN MARKETING TUMBLED 9 3/8 TO 47 1/4 AFTER PRESIDENT CLINTON PROPOSED DIRECT GOVERNMENT LOANS TO COLLEGE STUDENTS THAT COULD DRASTICALLY SHRINK SALLIE MAE'S OWN LENDING ACTIVITY LAST MONDAY THE STOCKS OF PHILIP MORRIS AND ANHEUSERBUSCH WERE FLATTENED BY REPORTS THAT HILLARY RODHAM CLINTON MAY PROPOSE SIN TAXES ON TOBACCO AND BEER TO FINANCE THE WHITE HOUSE'S PLANS FOR HEALTH CARE REFORM AT ONE POINT DURING THE DAY PHILIP MORRIS WAS DOWN 6 TO 62 THE SAME DAY GENERIC DRUG STOCKS LED BY MYLAN LABORATORIES WHICH FELL 4 5/8 TO 25 3/4 WERE HIT BY FEARS ABOUT POSSIBLE PRICE CONTROLS ON DRUG MAKERS THAT PANIC ALSO ADDED TO A WEEKLONG ROUT IN BIOTECH STOCKS ON TUESDAY SHARES OF CREDITCARD ISSUERS SUCH AS FIRST USA AND ADVANTA WERE MAULED BY RUMORS QUICKLY DENIED THAT WASHINGTON MAY TRY TO CAP CONSUMER INTEREST RATES THESE LIGHTNING BOLTS ARE MAKING LIFE UNCOMFORTABLE FOR INVESTORS SPOILED BY 12 YEARS OF LAISSEZFAIRE REPUBLICANS IN THE WHITE HOUSE IT'S VERY DISCONCERTING TO GET BLINDSIDED AND TAKE A 20 HIT IN A BIG POSITION BECAUSE OF THE HILLARY CLINTON FACTOR GROUSES BARTON BIGGS A MARKET STRATEGIST AT MORGAN STANLEY LIKE IT OR NOT SAYS MR BIGGS THE INVESTMENT TERRAIN HAS CHANGED THIS IS AN INTERVENTIONIST PRESIDENT HE SAYS THE LAST TIME I CAN REMEMBER SOMETHING LIKE THIS HAPPENING WAS IN THE EARLY '60S WHEN PRESIDENT KENNEDY CAME OUT AND BLASTED THE STEEL COMPANIES IT IS A NEW THING IN THE MARKET AND IT CERTAINLY IS DISCONCERTING OTHER STRATEGISTS FRET THAT SOME OF THE WHITEHOUSE RHETORIC HAS A DISTINCTLY ANTIBUSINESS TONE TRADERS HAVE DEVELOPED A HAIR TRIGGER FOR SELLING CLINTONSHOCK STOCKS PARTLY BECAUSE THE PRESIDENT UNVEILED SUCH AN AMBITIOUS AGENDA IN HIS ECONOMIC SPEECH FEB 17 THEY FIGURE THERE'S PLENTY MORE TO COME SUCH AS THE CLINTON HEALTHCARE PLAN DUE IN MAY THE SPARK FOR A SELLOFF CAN BE ANYTHING FROM A NEWSPAPER STORY TO A CASUAL COMMENT BY A CLINTON POLICYMAKER ON A SUNDAY TV INTERVIEW ALTHOUGH THE POSSIBILITY OF NEW TAXES ON TOBACCO AND LIQUOR TO FINANCE EXPANDED HEALTH CARE WAS MENTIONED IN PASSING IN NEWS ACCOUNTS OF THE FEB 17 SPEECH IT WASN'T UNTIL FEB 22 WHEN BOTH TIME AND NEWSWEEK FEATURED THE POSSIBLE TAXES IN STORIES THAT TRADERS PUSHED THE PANIC BUTTON AND CRUSHED THOSE STOCKS ON THURSDAY MR CLINTON CONFIRMED THAT TAXES ON TOBACCO BUT NOT NECESSARILY LIQUOR MAY BE CONSIDERED FOR EXAMPLE HE NOTES THAT DRUG MAKER PFIZER HAS TUMBLED 19 IN 1993 ON CONCERNS ABOUT GOVERNMENT PRICE CONTROLS ON PRESCRIPTION DRUGS AND SOME UPSCALE RETAILERS HAVE BEEN TORPEDOED ON THE THEORY THAT HIGHER TAXES ON THE WEALTHY WILL CRIMP SPENDING ON LUXURY GOODS LAST MONTH ALONE TIFFANY FELL 16 AND NORDSTROM HAS ALSO BEEN HIT DONALD STRASZHEIM CHIEF ECONOMIST AT MERRILL LYNCH SAYS HE WOULD HAVE THOUGHT THAT COMPANIES SPECIALIZING IN HEALTH CARE COSTCONTAINMENT WOULD HAVE BEEN A HAVEN BUT THE MARKET HAS TAKEN THEM ALL APART HE SAYS INVESTORS SIMPLY DO NOT KNOW WHAT THE ADMINISTRATION IS GOING TO DO BUT THEY ARE CONVINCED THERE IS A GREAT DEAL OF INTERVENTION COMING BOTH MR STRASZHEIM AND MR KERSCHNER SUGGEST AVOIDING STOCKS IN INDUSTRIES THAT MAY COME UNDER GOVERNMENT ATTACK INVESTORS SHOULD AVOID DAILY HEADLINE RISK' BY STEERING CLEAR OF STOCK GROUPS THAT WILL BE SUBJECT TO VITRIOLIC BASHING BY POLITICIANS MR KERSCHNER SAYS STOCKS THAT ARE SENSITIVE TO THE SPECIFICS OF CLINTON'S PLANS WILL BE EXTREMELY VOLATILE IN COMING MONTHS BUT OTHER PROFESSIONALS CAUTION AGAINST SELLING STOCKS IN THE GRIP OF SUCH PANICS SOME ARGUE THAT THE VERY CLOUD OF UNCERTAINTY CREATES OPPORTUNITY ROY BURRY WHO FOLLOWS TOBACCO AND BEVERAGE STOCKS FOR KIDDER PEABODY SAYS THIS IS THE BEST BUYING OPPORTUNITY IN TOBACCO STOCKS SINCE THE LITIGATION CRISIS OF THE MID1980S MR BURRY DOUBTS THAT DEVASTATING TAXES WILL BE IMPOSED BECAUSE TOBACCO CONSUMERS TEND TO HAVE BELOWAVERAGE INCOMES PUTTING THEM IN A GROUP MR CLINTON HAS VOWED TO SHIELD FROM MOST TAX BOOSTS AND MR BURRY THINKS SUCH TAXES MIGHT NOT RAISE ENOUGH TO FINANCE AN AMBITIOUS PROGRAM ANYWAY I DON'T THINK THEY'RE GOING TO RISK THEIR BIG AGENDA WHICH IS DEFICIT REDUCTION AND HEALTH CARE REFORM FOR A SIDESHOW HE SAYS JERRY TREPPEL WHO FOLLOWS GENERIC DRUGS FOR FURMAN SELZ SAYS THAT STOCK PRICES OF MYLAN AND OTHER GENERIC DRUG MAKERS WERE TUMBLING LAST MONDAY PARTLY ON UNFOUNDED FEARS ABOUT PRICE CONTROLS I'VE HEARD AMAZING THINGS OVER THE PAST COUPLE OF DAYS HE SAYS PEOPLE HAVE NO LONGER LOOKED AT WHAT CLINTON AND HILLARY HAVE ACTUALLY PROPOSED PEOPLE ARE IMAGINING THE WORST SCENARIOS POSSIBLE AND ACTING ON THAT CHARLES MORRIS MANAGER OF T ROWE PRICE'S 300 MILLION SCIENCE AND TECHNOLOGY FUND WAS BUYING HEALTH CARE STOCKS LAST MONDAY BECAUSE WE'RE AT THE POINT OF MAXIMUM UNCERTAINTY MAXIMUM RISK AND THEY'RE JUST KILLING THE STOCKS WHAT YOU HAVE ARE SKETCHY DETAILS ABOUT ONE SIDE OF THE STORY MAYBE WITHOUT CONSIDERING WHAT THE INDUSTRY'S RESPONSE WILL BE MR MORRIS BELIEVES PRESIDENT CLINTON'S HEALTH CARE PROPOSALS COULD RUN INTO SURPRISINGLY FIERCE OPPOSITION IF THEY WANT TO LEGISLATE THE HEALTH CARE BUSINESS OUT OF BUSINESS THEN I'M GOING TO BE HURT BY BUYING THE STOCKS HE SAYS BUT HE BELIEVES THAT IN A YEAR YOU'RE GOING TO LOOK BACK AT ALL THESE WONDERFUL COMPANIES YOU COULD BUY FOR 12 OR 14 OR 18 TIMES EARNINGS AND ASK YOURSELF HOW COULD I BE SO STUPID' NOT TO HAVE BOUGHT THEM IN THE SHORT RUN AT LEAST MR MORRIS'S VIEWS HAVE BEEN VINDICATED BY THE END OF LAST WEEK MYLAN AND OTHER GENERIC DRUG STOCKS HAD RECOUPED MOST OF THEIR MONDAY LOSSES SO DID CREDITCARD STOCKS AND ANHEUSER BUSCH BUT PHILIP MORRIS AND SALLIE MAE AMONG OTHERS REMAINED DEPRESSED OTHER STRATEGISTS ARE MORE CAUTIOUS MR KERSCHNER FOR ONE ARGUES THAT IT'S TOO RISKY TO TRY TO OUTGUESS THE MARKET ABOUT POLITICS HE SAYS THE TREMENDOUS STOCKPRICE VOLATILITY CREATED BY THE REFORM PLANS BEING BRUITED ABOUT WASHINGTON CREATES MANY BEGUILING OPPORTUNITIES HAVE DRUG STOCKS BOTTOMED OR WILL HILLARY IMPOSE PRICE CONTROLS WILL SALLIE MAE SPIKE UP AFTER CLINTON'S DIRECT FUNDING' PLAN IS SHOT DOWN BY CONGRESS MR KERSCHNER DOESN'T KNOW THE ANSWERS HE WARNS NO ONE KNOWS WHAT THE CLINTONS' PLANS WILL LOOK LIKE AFTER THEY HAVE BEEN BATTERED BY ROSS PEROT CONGRESSIONAL COMMITTEES ASSORTED LOBBYISTS AND PRESSURE GROUPS AND POWERFUL SENATORS WITH THEIR OWN POLITICAL AGENDAS STOCKS ENDED HIGHER ON A LATEAFTERNOON SURGE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 567 POINTS TO 337081 STANDARD & POOR'S 500STOCK INDEX ADDED 104 TO 44338 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 070 TO 24408 ADVANCING ISSUES TOPPED DECLINERS 1151 TO 757 VOLUME ON THE BIG BOARD TOTALED 234160000 SHARES DOWN FROM 252790000 SHARES THURSDAY THE LUNCHHOUR EXPLOSION AND FIRE BENEATH MANHATTAN'S WORLD TRADE CENTER DAMPED TRADING ACTIVITY ALTHOUGH THE NEW YORK STOCK EXCHANGE WAS OPEN ALL DAY SEVERAL TRADING DESKS LOCATED IN THE TRADE CENTER COMPLEX WERE FORCED TO SUSPEND ACTIVITY AS WERE THE NEW YORKBASED COMMODITY EXCHANGES FOR THE WEEK THE DOW INDUSTRIALS ADVANCED 15 THE S&P 500 GAINED 21 AND THE BIG BOARD'S COMPOSITE INDEX ROSE 2 DISKDRIVE MAKER CONNER PERIPHERALS WAS ONE OF THE MOST ACTIVELY TRADED STOCKS ON THE BIG BOARD FALLING 1 3/8 TO 16 7/8 THE COMPANY SAID LATE THURSDAY THAT IT EXPECTS FIRSTQUARTER EARNINGS AND SALES WILL FALL SHORT OF ANALYSTS' EXPECTATIONS ON FRIDAY LEHMAN BROTHERS AND KIDDER PEABODY LOWERED THEIR INVESTMENT RATINGS ON THE COMPANY'S STOCK DILLARD DEPARTMENT STORES TUMBLED 3 5/8 TO 44 3/8 THE RETAILER'S FOURTHQUARTER PROFIT SWELLED TO 1104 MILLION OR 98 CENTS A SHARE FROM 933 MILLION OR 83 CENTS A SHARE A YEAR EARLIER BUT THE EARNINGS WERE LESS THAN WALL STREET EXPECTED WHAT'S MORE DILLARD TOLD ANALYSTS THAT ITS BUSINESS HAS SLOWED SINCE PRESIDENT CLINTON'S SPEECH TO CONGRESS LAST MONTH ROLLINS ENVIRONMENTAL SERVICES SLID 1 TO 7 7/8 THE COMPANY SAID LATE THURSDAY THAT IT EXPECTS IT SECONDQUARTER EARNINGS TO BE SUBSTANTIALLY BELOW THE YEAR AGO'S 87 MILLION OR 14 CENTS A SHARE TELEFONOS DE MEXICO SA GAINED 2 TO 49 5/8 BEAR STEARNS LIFTED ITS INVESTMENT RATING ON THE COMPANY TO STRONG BUY FROM BUY CITING EXPECTATIONS OF CONTINUED GROWTH IN OPERATING PROFIT 9303010019 930301 INTERNATIONAL NIPPON HOUSING BAILOUT PLAN SET BY JAPAN BANKS COMPROMISE REACHED MEANS CONSORTIUM BEARS BRUNT OF RADICAL SURGERY' COST BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE FINANCIAL OFFICIALS ANNOUNCED A BIG STEP IN WHAT REMAINS A LONG DIFFICULT MARCH TO RESCUE THE COUNTRY'S TROUBLED BANKING SYSTEM AFTER MONTHS OF HAGGLING JAPANESE BANKERS HAMMERED OUT A COMPROMISE PLAN TO BAIL OUT THE STRUGGLING NIPPON HOUSING LOAN CO THE NATION'S LARGEST HOMEFINANCE CONCERN UNDER THE AGREEMENT THE NINE BANKS THAT FOUNDED NIPPON HOUSING WILL FORGO ALL INTEREST ON THEIR OUTSTANDING LOANS TO THAT COMPANY FOR 10 YEARS A REFLECTION OF HOW LONG IT MAY TAKE FOR MANY OF JAPAN'S FINANCIAL INSTITUTIONS TO GET BACK ON THEIR FEET THOSE LOANS ARE FOR A REPORTED 830 BILLION YEN 706 BILLION THE BANKS ALSO AGREED TO EXTEND TO NIPPON HOUSING NEW LOANS VALUED AT 602 BILLION YEN FURTHERMORE THE BANKS WILL ASK OTHER NIPPON HOUSING CREDITORS TO ACCEPT A REDUCTION IN INTEREST THE SIZE IS PRETTY HUGE SAID BRIAN WATERHOUSE BANKING ANALYST AT JAMES CAPEL PACIFIC LTD BUT WE HAVE TO REMEMBER THAT THIS IS JUST ONE CASE AMONG THOUSANDS NIPPON HOUSING IS ONE OF EIGHT HOMELOAN COMPANIES NEEDING RADICAL SURGERY MOREOVER THE HOMELOAN INDUSTRY IS JUST ONE SECTOR OF THE FINANCIAL COMMUNITY ALBEIT THE SICKEST REQUIRING SUCH HELP THE HOMELOAN COMPANIES AND OTHERS ARE NOW SUFFERING THE SERIOUS CONSEQUENCES OF EXCESSIVE LENDING THAT TOOK PLACE DURING THE 1980S WHEN A REALESTATE BOOM GRIPPED BANKS AND OTHER INSTITUTIONS IN A SPECULATIVE FEVER THE PACT ANNOUNCED FRIDAY UNDERSCORES THE HUGE SCOPE OF JAPAN'S FINANCIAL PROBLEMS WHILE NIPPON HOUSING'S TWO LEAD BANKS SANWA BANK AND SAKURA BANK WILL REPORTEDLY ASSUME THE BIGGEST BURDEN A CONSORTIUM OF BANKS WILL SHARE THE COSTS OF THE BAILOUT AS OPPOSED TO THE TRADITIONAL APPROACH OF STICKING ONLY ONE COMPANY WITH THE BILL MANY OF THESE BANKS WHICH ARE STRUGGLING WITH BAD LOANS THEMSELVES SAY IT IS DIFFICULT FOR THEM TO HELP OTHER FINANCIAL INSTITUTIONS THE TERMS ALSO REFLECT THE RELATIVELY WEAK POLITICAL MUSCLE OF THE BANKS APPARENTLY NO PUBLIC MONEY WILL BE USED TO BAIL OUT NIPPON HOUSING IN ADDITION AGRICULTURE COOPERATIVES WHICH ACCORDING TO SOME ESTIMATES HOLD 40 OF THE OUTSTANDING LOANS TO NIPPON HOUSING ARE GETTING A MUCH BETTER DEAL THAN THE BANKS IF THESE COOPERATIVES ACCEPT THE PACKAGE THEY'LL CONTINUE RECEIVING 45 INTEREST ON THEIR LOANS THAT COULD BE BECAUSE JAPAN'S FARMERS REMAIN A MAJOR BASE OF SUPPORT FOR THE RULING LIBERAL DEMOCRATIC PARTY AND POLITICIANS ARE ESPECIALLY WARY OF AGITATING THE AGRICULTURE LOBBY THESE DAYS BECAUSE THE GOVERNMENT WILL LIKELY BE SOON FORCED TO OPEN JAPAN'S RICE MARKET TO IMPORTS A HIGHLY CONTROVERSIAL DECISION THE PACT HAS NOTHING TO DO WITH ECONOMICS AND EVERYTHING TO DO WITH POLITICS SAID MR WATERHOUSE THE AGRICULTURAL COOPERATIVES SAY THEY DESERVE SPECIAL TREATMENT IN PART BECAUSE THEY ARE IN WEAK SHAPE AFTER HEAVY SPECULATIVE LENDING FINANCIAL OFFICIALS WERE QUOTED IN THE JAPANESE PRESS OVER THE WEEKEND AS SAYING THAT THE NIPPON HOUSING PACKAGE WOULD LIKELY SERVE AS A MODEL FOR BAILING OUT OTHER HOMEFINANCE COMPANIES SOME ANALYSTS SAY THE HOMEFINANCE CONCERNS FOUNDED BY THE BANKS IN THE 1970S HAVE ROUGHLY A COMBINED 57 TRILLION YEN IN NONPERFORMING LOANS DEFINED IN JAPAN AS LOANS ON WHICH INTEREST HASN'T BEEN PAID FOR SIX MONTHS OR MORE OFFICIAL GOVERNMENT REPORTS SAY JAPAN'S MAJOR BANKS HELD 123 TRILLION YEN IN BAD LOANS AS OF THE END OF SEPTEMBER BUT PRIVATEANALYST ESTIMATES SAY THE NUMBER IS LIKELY HIGHER BY PERHAPS THREE OR FOUR TIMES AS MUCH IN A BROADER MEASURE JAPAN'S BANKS HAVE SET UP AN ENTITY TO BUY NONPERFORMING ASSETS FROM PARTICIPATING BANKS 9303010018 930301 TWO PHONE FIRMS IN JAPAN EACH PLAN JOB CUTS OF 14 SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S TWO LARGEST TELECOMMUNICATIONS CONCERNS ANNOUNCED PLANS TO CUT THEIR WORK FORCES BY 14 EACH WITHIN FIVE YEARS TO COPE WITH SAGGING PROFITS AND FIERCE COMPETITION THE FIRMS ALSO FORECAST DWINDLING PROFITS IN THE COMING FISCAL YEAR NIPPON TELEGRAPH & TELEPHONE CORP THE COUNTRY'S LARGEST EMPLOYER AND MAIN PHONE COMPANY SAID IT WILL SLASH STAFFING TO 200000 BY MARCH 31 1998 FROM 233000 AT THE END OF THE FISCAL YEAR ENDING MARCH 31 KDD JAPAN'S MAIN INTERNATIONAL CARRIER SAID IT INTENDS TO DOWNSIZE TO 5000 FROM 5800 IN THE SAME PERIOD BOTH NTT AND KDD CITED INCREASED PRESSURE FROM NEW COMPETITION AND WEAK ECONOMIC CONDITIONS THE TWO SAID THEY WILL HIRE FEWER PEOPLE AND TRANSFER EMPLOYEES TO AFFILIATES BUT WON'T RESORT TO LAYOFFS THE PRIVATIZED TELEPHONE OUTFITS SUBMITTED THEIR OPERATION PLANS FOR THE COMING FISCAL YEAR TO THE MINISTRY OF POSTS AND TELECOMMUNICATIONS ON FRIDAY NTT SAID THAT FOR THE FISCAL YEAR BEGINNING APRIL 1 IT SEES UNCONSOLIDATED OR PARENTONLY PRETAX PROFIT FALLING 35 TO 149 BILLION YEN 127 BILLION FROM AN ANTICIPATED 229 BILLION YEN IN THE CURRENT YEAR THE COMPANY SAID IT EXPECTS REVENUE TO FALL 14 TO 5873 TRILLION YEN FROM THIS YEAR'S ESTIMATED 5958 TRILLION YEN NTT HAD PRETAX PROFIT OF 3528 BILLION YEN ON REVENUE OF 6056 TRILLION YEN IN THE YEAR ENDED MARCH 31 1992 KDD SAID PARENT PRETAX PROFIT IN THE COMING FISCAL YEAR LIKELY WILL SLIDE 12 TO 23 BILLION YEN FROM THE 26 BILLION YEN EXPECTED FOR THE CURRENT YEAR AS REVENUE INCHES UP TO 244 BILLION YEN FROM THE 243 BILLION YEN PREDICTED FOR THE CURRENT YEAR IN THE YEAR ENDED MARCH 31 1992 KDD HAD PRETAX PROFIT OF 2603 BILLION YEN ON REVENUE OF 24449 BILLION YEN NTT CONFIRMED A REPORT IT WILL CLOSE A LARGE NUMBER OF ITS 1300 SALES OFFICES BUT OFFICIALS WOULDN'T SAY HOW MANY AND IN WHAT TIME FRAME BOTH CARRIERS NONETHELESS ANNOUNCED PLANS TO BEEF UP THEIR INFRASTRUCTURE WITH NTT INTENDING TO INSTALL 71 MILLION NEW TERMINALS ON ITS DIGITAL SUBSCRIBER EXCHANGES AND KDD ADDING SEVERAL FIBER OPTIC CABLES IN THE ASIAN REGION TO ITS GLOBAL NETWORK THE COLLAPSE OF THE SOCALLED BUBBLE ECONOMY IN JAPAN HAS DRAGGED THE DEMAND GROWTH FOR INTERNATIONAL TELECOMMUNICATIONS SERVICES IN RECENT YEARS KDD NOTED THE OUTLOOK FOR THE ECONOMY REMAINS PESSIMISTIC FOR THE FISCAL YEAR 9303010017 930301 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED SIX NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE NEW YORK STOCK EXCHANGE BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS MANUFACTURED HOME COMMUNITIES INC CHICAGO A REAL ESTATE INVESTMENT TRUST UNDER MHC DEAN WITTER DISCOVER & CO NEW YORK A FINANCIAL SERVICES SUBSIDIARY OF SEARS ROEBUCK & CO UNDER DWD THE BIG BOARD ALSO BEGAN TRADING IN ADVO INC WINDSOR CONN A FULLSERVICE DIRECT MAIL MARKETING FIRM THAT HAD PREVIOUSLY TRADED OVERTHECOUNTER UNDER THE SYMBOL AD THE NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC HARAHAN LA A RETAILER OF CONSUMER ELECTRONICS UNDER CMPO FIRST SOUTHERN BANCORP INC ASHEBORO NC A SAVINGS BANK HOLDING COMPANY UNDER FSOU BOCA RATON INC BOCA RATON FLA A MAKER MARKETER AND SUPPORTER OF PRODUCTS DESIGNED TO ENHANCE THE ABILITIES OF DOS COMPUTERS UNDER BOCI WINSTON FURNITURE CO BIRMINGHAM ALA A DESIGNER MAKER AND DISTRIBUTOR OF CASUAL FURNITURE UNDER WFCI PHILIP ENVIRONMENTAL INC HAMILTON ONTARIO A DIVERSIFIED WASTE MANAGEMENT CONCERN CURRENTLY TRADES ON THE TORONTO STOCK EXCHANGE AND JOINS THE NATIONAL MARKET SYSTEM UNDER PENVF VIRGINIA FIRST SAVINGS BANK PETERSBURG VA A FEDERALLY CHARTERED STOCK SAVINGS BANK FORMERLY TRADED ON THE NASDAQ SMALL CAP MARKET MOVES UP TO THE NATIONAL MARKET SYSTEM UNDER VFSB THE CHICAGO BOARD OPTIONS EXCHANGE LAUNCHED FLEXIBLE EXCHANGE OPTIONS OR FLEX OPTIONS ON THE STANDARD & POOR'S 100STOCK AND 500STOCK INDEXES THE OPTIONS DESIGNED FOR INSTITUTIONAL INVESTORS PERMIT HOLDERS WIDE FLEXIBILITY IN SELECTING STRIKE PRICES EXPIRATION DATES AND OTHER FEATURES TRANSACTIONS INVOLVING A FLEX SERIES MUST REPRESENT AT LEAST 10 MILLION IN UNDERLYING VALUE THE CBOE ALSO BEGAN TRADING OPTIONS ON CELLPRO INC BOTHELL WASH GENDEX CORP DES PLAINES ILL AND AMERICAN DEPOSITARY RECEIPTS OF HONG KONG TELECOMMUNICATIONS LTD THE AMERICAN STOCK EXCHANGE BEGAN TRADING LONGTERM ANTICIPATION SECURITIES OR LEAPS ON CHEMICAL BANKING CORP INTERNATIONAL GAME TECHNOLOGY MERRILL LYNCH & CO TELECOMMUNICATIONS INC UNISYS CORP AND WARNERLAMBERT CO THE AMEX ALSO BEGAN TRADING OPTIONS ON THE AMERICAN DEPOSITARY RECEIPTS OF HONG KONG TELECOMMUNICATIONS LTD THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON CLOTHESTIME INC ANAHEIM CALIF 9303010016 930301 PFIZER TO BOOST SPENDING IN 1993 ON RESEARCH FIRM SAYS NO DRUG PRICE WILL RISE OVER 45 NEW DRUG FILINGS SLATED BY PHILLIP NALBONE SPECIAL TO THE WALL STREET JOURNAL NEW YORK PFIZER INC SAID IT EXPECTS TO SPEND 1 BILLION ON RESEARCH AND DEVELOPMENT THIS YEAR COMPARED WITH WHAT A SPOKESMAN ESTIMATED WAS 880 MILLION SPENT ON R&D IN 1992 PROJECTING DRUG COSTS FOR THIS YEAR PFIZER IN A NEWS RELEASE SAID ITS 1993 US PHARMACEUTICAL PRICE INCREASE ON A WEIGHTED AVERAGE BASIS WILL BE BELOW 3 WITH NO INDIVIDUAL DRUG PRICE INCREASING BY MORE THAN 45 THE COMPANY ALSO SAID IT IS WELL INTO THE TASK OF PREPARING REGULATORY FILINGS FOR TENIDAP THE FIRST OF A NEW CLASS OF CYTOKINEMODULATING ARTHRITIS DRUGS PFIZER SAID ITS US NEW DRUG APPLICATION FOR TENIDAP WILL COVER RHEUMATOID ARTHRITIS AND OSTEOARTHRITIS PFIZER INTENDS TO FILE THE NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINSTRATION LATE IN THE THIRD QUARTER OR EARLY IN THE FOURTH QUARTER OF THIS YEAR FOR THE ANTIARTHRITIS DRUG PFIZER OFFICIALS TOLD ANALYSTS FRIDAY THAT THE COMPANY PLANS FOREIGN REGULATORY FILINGS FOR APPROVAL TO MARKET TENIDAP IN THE SECOND QUARTER OF THIS YEAR THE COMPANY PLANS A NDA FILING IN THE FOURTH QUARTER FOR ITS DRUG NORVASC FOR THE TREATMENT OF CONGESTIVE HEART FAILURE THE DRUG HAS ALREADY BEEN APPROVED IN 39 COUNTRIES INCLUDING THE US TO TREAT ANGINA AND HYPERTENSION THE COMPANY INDICATED THAT IT PLANS A THIRDQUARTER NDA FILING FOR PEDIATRIC USE OF ITS ANTIBIOTIC ZITHROMAX WHICH WAS APPROVED FOR ADULT USE LAST YEAR ALSO IN THE THIRD QUARTER PFIZER OFFICIALS SAID THE COMPANY PLANS TO FILE AN NDA FOR PEDIATRIC USE OF ITS ANTIFUNGAL DRUG DIFLUCAN WHICH IS ALREADY AVAILABLE IN 56 COUNTRIES THE COMPANY HAS AN NDA PENDING FOR USE OF DIFLUCAN IN VAGINAL CANDIDIASIS THAT NDA WAS FILED IN DECEMBER THE COMPANY ALSO INDICATED IT PLANS TO FILE ITS NDA IN THE SECOND QUARTER FOR USE OF ITS DRUG CARDURA FOR TREATMENT OF THE NONCANCEROUS SWELLING OF THE PROSTATE GLAND COMMON IN OLDER MEN THAT DRUG A MEMBER OF THE SOCALLED ALPHABLOCKER CLASS HAS ALREADY BEEN APPROVED FOR CARDIOVASCULAR TREATMENTS PFIZER INC EXECUTIVES DECLINED TO COMMENT ON EXPECTATIONS FOR EARNINGS GROWTH THIS YEAR EXCEPT TO SAY THEY BELIEVE ANALYSTS' ESTIMATES IN THE RANGE OF 360 TO 390 A SHARE SEEM APPROPRIATE GIVEN UNCERTAINTIES ABOUT HEALTHCARE POLICY PFIZER CHIEF FINANCIAL OFFICER HENRY A MCKINNELL TOLD ANALYSTS THAT THE 360 TO 390 RANGE SEEMS TO REFLECT A CONSENSUS ON WALL STREET THAT EARNINGS WILL DEPEND NOT ONLY ON PFIZER'S ABILITY TO SUSTAIN STRONG SALES GROWTH BUT ON THE CONSEQUENCES OF WHATEVER HEALTHCARE POLICIES ARE IMPLEMENTED AT THE FEDERAL LEVEL MR MCKINNELL SAID EARNINGS THIS YEAR WOULD COMPARE WITH EARNINGS FROM ONGOING OPERATIONS IN 1992 OF 306 A SHARE I'VE NEVER SEEN A YEAR IN WHICH IT IS SO COMPLICATED TO MAKE FORECASTS MR MCKINNELL SAID I DON'T THINK SUCH A RANGE IS INAPPROPRIATE HE INDICATED THE COMPANY'S GROSS MARGIN THIS YEAR COULD IMPROVE BY ABOUT 22 PERCENTAGE POINTS PREVIOUSLY MR MCKINNELL SAID HE HAD BEEN LOOKING FOR A 1 TO 15 PERCENTAGE POINT IMPROVEMENT IN GROSS MARGINS IN 1992 THE COMPANY'S REPORTED GROSS MARGIN WAS 72 WHILE ITS GROSS MARGIN FROM ONGOING BUSINESSES WAS 742 MR MCKINNELL SAID THAT THE 22 PERCENTAGE POINT SPREAD BETWEEN THOSE TWO NUMBERS GIVES A GOOD INDICATION OF THE TYPE OF IMPROVEMENT POSSIBLE THIS YEAR MR MCKINNELL NOTED THAT SINCE 1988 PFIZER HAS DIVESTED ITSELF OF OR CLOSED 14 BUSINESSES WITH RELATIVELY LOW PROFIT MARGINS THE GROSS MARGIN PROJECTION BY MR MCKINNELL PROMPTED AT LEAST ONE ANALYST TO BOOST HIS EARNINGS FORECAST FOR THE YEAR MABON SECURITIES CORP ANALYST JAMES KEENEY SAID THAT HE RAISED HIS 1993 EARNINGS ESTIMATE BY 5 CENTS A SHARE TO 365 A SHARE HIS PREVIOUS ESTIMATE HAD ASSUMED JUST A ONE PERCENTAGE POINT IMPROVEMENT IN GROSS MARGIN EARNINGS OF 365 A SHARE MR KEENEY NOTED WOULD REPRESENT EARNINGS GROWTH OF ROUGHLY 19 THAT'S CLEARLY A SUPERIOR PERFORMANCE WITHIN THE INDUSTRY MR KEENEY SAID BUT IN THE CURRENT POLITICAL CLIMATE THAT'S NOT LIKELY TO RESULT IN MUCH OF AN EXPANSION OF PFIZER'S STOCK PRICE FOR AT LEAST THE NEXT COUPLE OF QUARTERS 9303010015 930301 MARKETING & MEDIA ADVERTISING CLINTON ATTACK ON DRUG MAKERS IS A BIG PR PAIN IN THE INDUSTRY BY KEVIN GOLDMAN THE CLINTON ADMINISTRATION'S ATTACK ON US PHARMACEUTICAL MAKERS IS GIVING THE INDUSTRY A BIG PUBLIC RELATIONS HEADACHE AND THERE'S NO FASTACTING PAIN RELIEF IN SIGHT LAST MONTH THE PRESIDENT CHARGED THAT THE INDUSTRY SPENDS 1 BILLION MORE EACH YEAR ON ADVERTISING AND LOBBYING THAN IT DOES ON DEVELOPING NEW AND BETTER DRUGS WE CANNOT HAVE PROFITS AT THE EXPENSE OF OUR CHILDREN CONGRESS PILED ON WITH A STUDY THAT CRITICIZED THE INDUSTRY'S EXCESS PROFITS AT A NEWS CONFERENCE ANNOUNCING THE RESULTS REP HENRY WAXMAN D CALIF SAID CUTS COULD COME FROM THOSE EXCESS PROFITS WHICH APPEAR TO BE AS HIGH AS 2 BILLION PER YEAR AND FROM THE 10 BILLION PER YEAR SPENT ON WASTEFUL AND DETRIMENTAL ADVERTISING AND PROMOTION FOR THE TIME BEING MOST OF THE MAJOR DRUG COMPANIES HAVE CHOSEN NOT TO RESPOND VIGOROUSLY TO THE HIGHLY PUBLIC COMMENTS OF PRESIDENT CLINTON AND THE STUDY BY THE OFFICE OF TECHNOLOGY ASSESSMENT A BIPARTISAN CONGRESSIONAL AGENCY SOME OBSERVERS SAY THAT THE DRUG COMPANIES ARE HOLDING THEIR FIRE UNTIL MAY 1 WHEN HILLARY RODHAM CLINTON WHO IS HEADING A TASK FORCE ON HEALTH CARE IS EXPECTED TO REVEAL A COMPREHENSIVE REFORM PROPOSAL INDEED THE ONLY MAJOR COUNTERATTACK SO FAR HAS BEEN AN AD PLACED FEB 19 BY PHARMACEUTICAL GIANT MERCK IN THE WALL STREET JOURNAL THE NEW YORK TIMES THE WASHINGTON POST AND THE PHILADELPHIA INQUIRER THE AD AN OPEN LETTER FROM P ROY VAGELOS MERCK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND A TRAINED PHYSICIAN CALLS FOR HEALING HEALTH CARE THROUGH COOPERATION NOT CONFRONTATION DR VAGELOS SAYS THAT MERCK IS COMMITTED TO HELPING CURE AMERICA'S HEALTH CARE ILLS BUT TO DO SO WE NEED UNWAVERING COOPERATION FROM EVERY AMERICAN BOTH INSIDE AND OUTSIDE OF GOVERNMENT ROBERT DILENSCHNEIDER WHO HEADS HIS OWN PUBLIC RELATIONS FIRM AND SPECIALIZES IN CRISIS MANAGEMENT SAYS IT'S CLEAR THAT HILLARY CLINTON IS GOING TO USE DRUG AND INSURANCE COMPANIES AS WHIPPING BOYS TO HELP STIMULATE DEBATE OVER HEALTH CARE THESE DRUG COMPANIES ARE GOING TO HAVE TO JOIN THE DEBATE MR DILENSCHNEIDER ESTIMATES THAT THE DRUG COMPANIES WILL COLLECTIVELY SPEND OVER 100 MILLION ON EVERYTHING FROM PAID ADVERTISING TO LOBBYING AND POSITION PAPERS TO DIRECT MAIL ADS LIKE MERCK'S ARE THE EARLY SHOTS HE SAYS BUT THIS WILL BE LIKE NO BATTLE WE'VE SEEN RECENTLY MERCK SPENT ONLY 175000 TO RUN ITS ENTIRE CAMPAIGN INCLUDING LATER ADS IN ROLL CALL THE CONGRESSIONAL NEWSLETTER AND THE NEWARK NJ STARLEDGER I CAN'T SPEAK FOR THE REST OF THE INDUSTRY BUT MERCK IS GOING TO DEFEND ITS REPUTATION A COMPANY SPOKESMAN SAYS GOING AFTER THE DRUG COMPANIES IS HARDLY A RISKY STRATEGY MANY AMERICANS ARE TOUCHED FIRSTHAND BY RISING PRICES ON PRESCRIPTION MEDICINE THE PRICES OF SOME WIDELY USED DRUGS BALLOONED 100 TO 150 FROM 1987 TO 1992 AND DRUGS COST MORE IN THE US THAN IN MANY OTHER COUNTRIES FOR INSTANCE GLAXO'S NEW ANTIBIOTIC CEFTIN COSTS 12074 AT WHOLESALE FOR 60 TABLETS WHILE IN CANADA THE SAME AMOUNT GOES FOR 6901 AMERICANS HAVE ALSO LOST FAITH THAT THE PRICES THEY MUST PAY FOR PHARMACEUTICAL DRUGS ARE PROPERLY IN PROPORTION TO THE RESEARCH AND DEVELOPMENT THAT WENT INTO DISCOVERING THE ACTUAL DRUG INSTEAD AMERICANS ARE THINKING THAT THE DRUG COMPANIES ARE WONDERING HOW MUCH THEY CAN GET AWAY WITH CHARGING SUCH DRUG COMPANIES SUCH AS PFIZER WARNERLAMBERT SMITHKLINE AND SCHERINGPLOUGH SAY THAT PAID ADVERTISEMENTS TO DEFEND THEIR BUSINESS ARE A POSSIBILITY ALTHOUGH NOTHING IS IMMINENT THAT DOESN'T MEAN THAT SAY IN TWO DAYS WE WON'T WEIGH IN WITH ONE SAYS A WARNERLAMBERT REPRESENTATIVE IT IS A WAY TO GET OUR MESSAGE ACROSS ABOVE THE CLUTTER A SPOKESMAN FOR SCHERINGPLOUGH SAYS THE COMPANY IS PLANNING A COMMUNICATIONS PROGRAM ITS NATURE AND EXTENT HAVE YET TO BE DETERMINED BUT GLAXO SAYS PAID ADS AREN'T THE WAY TO GO INSTEAD IT MAKES SURE THAT GLAXO EXECUTIVES DELIVERING SPEECHES ACROSS THE COUNTRY EMPHASIZE THE VALUE OF OUR PRODUCTS SAYS A SPOKESMAN THE MORE THAN 100 DRUG COMPANIES REPRESENTED BY A TRADE ORGANIZATION THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION MAY TURN TO THAT GROUP FOR HELP SINCE 1992 THE PMA HAS PLACED FULLPAGE ADS IN NEWSPAPERS AND NEWS WEEKLIES WITH THE SLOGAN PHARMACEUTICALS SAVING LIVES SAVING MONEY A SERIES OF ADS BOIL DOWN TO A FEW SENTENCES SUCH COMPLEX SUBJECTS AS WHAT WE'RE DOING TO HOLD DOWN THE HIGH COST OF STROKES HEART DISEASE ALZHEIMER'S DISEASE CANCER NURSING HOME CARE AND UNCURED DISEASES A PMA SPOKESMAN WON'T GIVE DETAILS BUT SAYS THE WASHINGTONBASED ORGANIZATION IS CONSIDERING OPTIONS OVER AND ABOVE OUR CURRENT ADVERTISING THE REVIEW FOR SEARS ROEBUCK & CO'S APPAREL ACCOUNT HAS TURNED INTO A BIGAGENCY BRAWL AS THE CHICAGO RETAILER'S MERCHANDISE GROUP CHOSE SIX CONTENDERS TO PITCH THE ESTIMATED 20 MILLION BUSINESS THE NEW YORK AGENCIES ARE OMNICOM GROUP'S DDB NEEDHAM SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING WELLS RICH GREENE BDDP YOUNG & RUBICAM AND THE INCUMBENT WPP GROUP'S OGILVY & MATHER MIDSIZE SHOP HAL RINEY & PARTNERS SAN FRANCISCO ALSO IS PARTICIPATING THE CHICAGO OFFICES OF OGILVY AND DDB NEEDHAM ARE ALSO WORKING ON THE PITCHES OGILVY'S CHICAGO OFFICE IS THE INCUMBENT ON THE ACCOUNT BUT WILL PROVIDE SUPPORT TO THE NEW YORK OFFICE IN THIS EFFORT AN OGILVY SPOKESWOMAN SAID CREATIVE PRESENTATIONS ARE SCHEDULED FOR LATE NEXT MONTH SEARS SAID WITH A FINAL SELECTION SLATED FOR MAY THE NEW CAMPAIGN IS DUE IN THE FALL 9303010014 930301 SOUTHERN CALIFORNIA GAS BONDS LOS ANGELES SOUTHERN CALIFORNIA GAS CO SAID IT WILL REDEEM ALL OF THE 100 MILLION OUTSTANDING AGGREGATE PRINCIPAL AMOUNT OF THE 9 3/8 FIRST MORTGAGE BONDS SERIES R DUE IN 2016 THE REDEMPTION WILL BE EFFECTIVE ON MARCH 31 AT 105931 OF THE PRINCIPAL AMOUNT OF THE BONDS PLUS ACCRUED INTEREST SOUTHERN CALIFORNIA GAS A UNIT OF PACIFIC ENTERPRISES SAID IT'S REDEEMING THE BONDS TO REFUND HIGH COUPON DEBT 9303010013 930301 BUSINESS BRIEF BANK OF BOSTON CORP US REGULATORY RESTRICTIONS ON LARGEST UNITS ARE LIFTED BANK OF BOSTON CORP SAID THE OFFICE OF THE COMPTROLLER OF THE CURRENCY LATE LAST WEEK LIFTED REGULATORY RESTRICTIONS IMPOSED IN 1989 ON ITS LARGEST UNITS UNDERSCORING IMPROVED RESULTS AT NEW ENGLAND'S SECOND LARGEST BANKING COMPANY THE FORMAL AGREEMENT REQUIRED TOUGHER INTERNAL CONTROLS AND RESERVE POLICIES AND TIGHTENED OPERATIONS SUCH AS INCREASING THE FREQUENCIES OF REAL ESTATE APPRAISALS THE HOLDING COMPANY IS STILL OPERATING UNDER A FORMAL AGREEMENT WITH THE FEDERAL RESERVE THAT ALSO TIGHTENS CONTROLS AND SUPERVISION AND REQUIRES FOR EXAMPLE APPROVAL TO PAY COMMON STOCK DIVIDENDS AN EARLIER FED ORDER REQUIRING APPROVAL OF PREFERRED DIVIDENDS HAS ALREADY BEEN DROPPED 9303010012 930301 BUSINESS BRIEF PETER J SCHMITT CO REORGANIZATION PLAN FILED WITH US BANKRUPTCY COURT PETER J SCHMITT CO BASED IN BUFFALO NY SAID IT FILED A PLAN OF REORGANIZATION WITH US BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE THE COURT WILL HOLD A HEARING TO CONFIRM THE PLAN ON APRIL 22 UNDER THE PLAN CERTAIN PRIORITY CREDITORS INCLUDING EMPLOYEES AND VENDORS WOULD RECEIVE FULL PAYMENT FOR THEIR ALLOWED PART OF THE CLAIMS SECURED CREDITORS SUCH AS REVOLVER BANKS AND SENIOR LENDERS WOULD GET LESS THAN THE FULL AMOUNT OF ALLOWED CLAIMS BUT HOW MUCH LESS HASN'T BEEN DETERMINED UNSECURED CREDITORS AND OTHERS WOULD SPLIT THE REMAINING ASSETS THE CLOSELY HELD REGIONAL WHOLESALER TO SUPERMARKETS SOUGHT PROTECTION FROM CREDITORS MAY 29 UNDER CHAPTER 11 OF THE BANKRUPTCY CODE 9303010011 930301 ECONOMY NATION'S OUTPUT SHOWS BIGGEST GROWTH IN FIVE YEARS BUT JOB PROBLEMS LINGER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY GREW AT ITS STRONGEST PACE IN FIVE YEARS IN THE FOURTH QUARTER REVISED FIGURES SHOW THE COMMERCE DEPARTMENT SAID GROSS DOMESTIC PRODUCT THE MEASURE OF GOODS AND SERVICES PRODUCED IN THE US EXPANDED AT AN ANNUAL RATE OF 48 IN THE LAST THREE MONTHS OF 1992 THAT WAS THE BEST GROWTH RATE SINCE THE FOURTH QUARTER OF 1987 AND IS A FULL PERCENTAGE POINT ABOVE THE DEPARTMENT'S INITIAL ESTIMATE A MONTH AGO FOR THE YEAR THE ECONOMY GREW 21 THE SAME AS IN THE PREVIOUS ESTIMATE THE HEADY GROWTH IN THE FOURTH QUARTER MAKES THE PALTRY NUMBER OF JOBS BEING CREATED IN THE ECONOMY THAT MUCH MORE DISCONCERTING WE ARE DEALING WITH JOBLESS GROWTH SAID MAUREEN ALLYN CHIEF ECONOMIST FOR SCUDDER STEVENS & CLARK INC THE ECONOMY COULD BE GROWING 12 BUT AMERICANS AREN'T GOING TO BE HAPPY IF THERE ARE NO JOBS FOR THAT REASON MANY ANALYSTS SAY PRESIDENT CLINTON'S PROPOSAL FOR ECONOMIC STIMULUS IS STILL NEEDED DESPITE SIGNS THAT THE ECONOMY IS IMPROVING ANALYSTS ALSO SAY THE BIG BURST OF GROWTH IN THE FOURTH QUARTER DOESN'T CHANGE THE PICTURE OF A SLOWLY IMPROVING ECONOMY THE GROWTH IN THE FOURTH QUARTER IS UNLIKELY TO BE REPEATED THINGS HAVE SLOWED SAID BRUCE STEINBERG MERRILL LYNCH SENIOR ECONOMIST INDEED THE UNIVERSITY OF MICHIGAN CONSUMER CONFIDENCE INDEX SLID TO 866 IN FEBRUARY FROM 893 IN JANUARY ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT THAT COULD BE A WARNING SIGN THAT CONSUMER SPENDING MAY WEAKEN ALREADY IN JANUARY RETAIL SALES GREW AT A MUCH SLOWER PACE THAN IN DECEMBER AND FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID SEVERAL TIMES IN TESTIMONY ON CAPITOL HILL LAST WEEK THAT THE ECONOMY HAS SLOWED DOWN FROM ITS ENDOFTHEYEAR PERFORMANCE THE BIG GDP REVISION WAS THE RESULT OF BETTERTHANEXPECTED EXPORTS MORE CONSUMER SPENDING AND A LARGER BUILDUP IN INVENTORIES THAN ORIGINALLY REPORTED THE REVISIONS ALSO PAINT A MORE FAVORABLE INFLATION PICTURE THE GDP FIXEDWEIGHT PRICE INDEX IS NOW REPORTED TO HAVE RISEN AT A 29 ANNUAL RATE INSTEAD OF THE EARLIER ESTIMATE OF 32 PART OF THE REASON FOR SLOW JOB GROWTH DESPITE STRONGER ECONOMIC ACTIVITY IS HIGH PRODUCTIVITY GAINS COMPANIES ARE MANAGING TO GET MORE WORK PER HOUR OUT OF EACH EMPLOYEE ON THE JOB A NEW SURVEY BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT FOUND THAT PURCHASERS BELIEVED THE MAIN REASON FOR PRODUCTIVITY GAINS WAS BECAUSE OF WORK FORCE CUTBACKS ANOTHER REASON FOR SLUGGISH JOB GROWTH IS CAUTIOUSNESS THE SAME PURCHASERS' SURVEY FOUND THAT MORE THAN A QUARTER OF PURCHASING EXECUTIVES DIDN'T ENVISION EMPLOYMENT INCREASING AT THEIR COMPANIES UNTIL AFTER 1993 AND MORE THAN 72 DIDN'T SEE JOBS INCREASING IN THE FORESEEABLE FUTURE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FOURTH QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1188 FROM 1179 IN THE PREVIOUS QUARTER 9303010010 930301 WORK & FAMILY BY SUE SHELLENBARGER XEROX CREATES A BROAD NEW SUBSIDY TO MEET EMPLOYEES' CHANGING FAMILY NEEDS THE PLAN WHICH XEROX TOLD EMPLOYEES ABOUT LAST WEEK AND EXPECTS TO EXPAND IN THE NEXT SEVERAL YEARS OFFERS EACH EMPLOYEE UP TO 10000 IN TAXABLE INCOME OVER THE COURSE OF HIS OR HER TIME WITH XEROX TOWARD FAMILY AND PERSONAL EXPENSES THIS YEAR EMPLOYEES MAKING LESS THAN 50000 A YEAR CAN GET CHILDCARE SUBSIDIES BASED ON A SLIDING SCALE OVER THE NEXT SEVERAL YEARS THE COMPANY EXPECTS TO EXPAND THE SUBSIDY TO ALLOW ALL EMPLOYEES REGARDLESS OF INCOME TO USE IT FOR OTHER NEEDS INCLUDING PARTIAL PAY REIMBURSEMENT DURING FAMILY LEAVE A FAMILY MEMBER'S COLLEGE TUITION HELP FOR FIRSTTIME HOME BUYERS OR ELDERCARE COSTS THE AIM IS TO OFFSET THE COST OF WORKFAMILY RELATED EVENTS AS A PERSON GOES THROUGH THE LIFE CYCLE SAYS WENDY STARR XEROX'S MANAGER OF LIFECYCLE PROGRAMS AND POLICIES XEROX IS FUNDING THE PLAN PARTLY BY MANAGING COSTS IN ITS FLEXIBLEBENEFITS PROGRAM MS STARR SAYS IT EXPECTS ABOUT 5000 OF ITS 55000 US EMPLOYEES TO USE THE CHILDCARE SUBSIDY THIS YEAR THE TIMETABLE FOR THE ROLLOUT OF OTHER OFFERINGS WILL DEPEND ON EMPLOYEE RESPONSE THE PLAN IS INNOVATIVE AND CREATIVE SAYS FRAN RODGERS PRESIDENT OF WORK/FAMILY DIRECTIONS A BOSTON CONSULTANT DOUGLAS CAREY A PARTNER IN ROWAYTON CONN WITH CONSULTANT HEWITT ASSOCIATES SAYS THE PLAN APPEALS TO A DIVERSE GROUP OF EMPLOYEES AT DIFFERENT STAGES IN THEIR CAREERS THOUGH SOME COMPANIES OFFER CHILDCARE SUBSIDIES MANY FEAR CRITICISM THAT SUCH PROGRAMS UNFAIRLY BENEFIT ONLY A NARROW GROUP OF EMPLOYEES THE XEROX PLAN IS MORE EQUITABLE BUT IS ALSO LIKELY TO BE SEEN BY MANY EMPLOYERS AS TOO COSTLY THE NATION'S LARGEST DEPENDENTCARE CONSORTIUM HAS STARTED 61 CHILDCARE PROGRAMS IN ITS FIRST SIX MONTHS DESPITE UPHEAVAL AT THREE FOUNDING COMPANIES THE 109COMPANY PARTNERSHIP THE AMERICAN BUSINESS COLLABORATION HAS STARTED CHILDCARE CENTERS RECRUITING TRAINING AND SUPPORT PROGRAMS FOR CHILDCARE WORKERS AND SCHOOLHOLIDAY PROGRAMS IN DOZENS OF CITIES AN ADDITIONAL 239 PROJECTS ARE PLANNED UNDER THE GROUP'S 254 MILLION ACCORD AND SEVERAL MORE COMPANIES MAY JOIN PARTICIPANTS SAY SUMMER SCIENCEANDTECHNOLOGY CAMPS ARE ESPECIALLY POPULAR WITH THE COMPANIES PROVIDING IDEAS AND EMPLOYEES AS SPEAKERS FROM OUR STANDPOINT EDUCATING KIDS IN SCIENCE AND TECHNOLOGY JUST MAKES SENSE SAYS ROBERT REICHELT MANAGER OF HUMANRESOURCES POLICY AND PLANNING FOR EXXON ONE OF THE COLLABORATION'S 11 FOUNDERS IN NEW JERSEY MEMBERS ALSO ARE TRYING TO BRING TOGETHER OFFICIALS OF THE STATE'S 600 SCHOOL DISTRICTS TO COORDINATE SCHEDULES AND PROVIDE AFTERSCHOOL CARE THOUGH THREE OF THE GROUP'S FOUNDERS AMERICAN EXPRESS INTERNATIONAL BUSINESS MACHINES AND SEARS ROEBUCK'S ALLSTATE INSURANCE UNIT HAVE MOVED TO RESTRUCTURE OR CHANGE CHIEF EXECUTIVES SINCE THE GROUP BEGAN IN SEPTEMBER ITS PLANS ARE UNCHANGED PARTICIPANTS SAY INDEED MEMBERS STRESS COLLABORATION AS THE MOST COSTEFFECTIVE WAY OF DELIVERING SERVICES TO WORKERS SAYS MICHAEL SNIPES ALLSTATE'S DIRECTOR OF COMPENSATION AND BENEFITS DO YOU HAVE A ZOE BAIRD PROBLEM IF SO YOU MAY HAVE MORE TO WORRY ABOUT THAN BEING INELIGIBLE FOR PUBLIC OFFICE FOR MOST OF THE 1980S THE NUMBER OF AMERICANS CLAIMING TAX CREDITS FOR CHILDCARE COSTS SURGED AS DID THE NUMBER OF BABY SITTERS BEING PAID OFF THE BOOKS BUT WHEN THE INTERNAL REVENUE SERVICE EXAMINED RETURNS FOR 1989 IT FOUND A SUSPICIOUSLOOKING 31 DROP IN TAXPAYERS TAKING THE CREDIT THAT WAS THE YEAR THE AGENCY BEGAN REQUIRING TAXPAYERS TO PROVIDE THEIR BABY SITTER'S NAME ADDRESS AND SOCIAL SECURITY NUMBER TO BE ELIGIBLE FOR THE CREDIT THE SAME YEAR 65 MORE TAXPAYERS REPORTED RECEIVING INCOME FOR PROVIDING CHILD CARE THE IRS DECLARED IN A 1991 REPORT THAT A TREND OF INCREASING NUMBERS OF IMPROPER CHILDCARE CREDITS SINCE 1979 HAS FINALLY BEEN REVERSED BUT THE AGENCY ALSO AUTHORIZED AN ANONYMOUS TAXPAYER SURVEY SET FOR PUBLICATION THIS FALL TO GET A BETTER UNDERSTANDING OF WHAT WAS BEHIND THE CHANGE IN TAXCREDIT CLAIMS AN IRS SPOKESMAN SAYS IT'S TOO EARLY TO TELL WHAT IF ANY ACTION THE AGENCY MIGHT TAKE BUT THE RESULTS COULD AFFECT HOW RETURNS ARE SELECTED FOR AUDIT THE SPOKESMAN SAYS THOUGH HE ADDS IT'S UNLIKELY THE SURVEY WILL LEAD TO AUDITS OF ANY RETURNS FROM 1989 OR BEFORE THE CASE OF THE TARDY MOTHER SPARKS A CALIFORNIA PUSH FOR MORE EMPLOYER FLEXIBILITY LESBHIA MORONES AN EAST OAKLAND CALIF MOTHER OF FIVE WAS LATE TO WORK 54 TIMES IN THE FIRST FIVE MONTHS OF 1992 BECAUSE HER CHILDREN'S SCHOOL DIDN'T OPEN UNTIL 8 AM WITH A HUSBAND WORKING THE GRAVEYARD SHIFT AND ONLY A HALFHOUR TO GET TO HER JOB IN NORTH OAKLAND MS MORONES DIDN'T IMPROVE HER RECORD HER EMPLOYER THE STATE DEPARTMENT OF MOTOR VEHICLES CUT HER PAY SAYING IT HAD ALREADY ADJUSTED HER SCHEDULE AND HER TARDINESS WAS ONLY GETTING WORSE MS MORONES APPEALED THE PAY CUT TO AN ADMINISTRATIVE LAW JUDGE WHO REVOKED THE PENALTY AND TOLD THE DEPARTMENT TO LET HER START WORK 15 MINUTES LATER THE HEARING OFFICER RUTH FRIEDMAN BLAMED MS MORONES'S PROBLEM ON A LACK OF ADEQUATE CHILD CARE AND PUBLIC TRANSPORTATION A STATE PERSONNEL BOARD OVERTURNED THAT RULING AND PLANS TO HEAR THE CASE THIS MONTH NOW THE 130000MEMBER CALIFORNIA STATE EMPLOYEES ASSOCIATION IS PRESSING LEGISLATION TO REQUIRE STATE AGENCIES TO MAKE REASONABLE ACCOMMODATIONS FOR FAMILYCARE NEEDS SAYS ROBERT MUELLER MS MORONES'S ATTORNEY THOUGH SUCH A LAW WOULDN'T BIND PRIVATE EMPLOYERS MANY COMPANIES HEED STATE PRACTICES AS ONE STANDARD IN SETTING POLICIES MS MORONES'S PAY CUT MEANWHILE IS BACK IN EFFECT 9303010009 930301 LEISURE & ARTS TELEVISION COP SHOW WITH A STYLISTIC TWIST BY ROBERT GOLDBERG IT'S AN INVASION OF FLATFEET THESE DAYS THERE ARE MORE POLICE WALKING THE TV BEAT THAN YOU CAN SHAKE A NIGHT STICK AT COPS TOP COPS LAW AND ORDER THE COMMISH IN THE HEAT OF THE NIGHT PICKET FENCES AMERICAN DETECTIVE SECRET SERVICE FBI UNTOLD STORIES AND THE BEST OF THE LOT THE SMART AND JAGGED DRAMA HOMICIDE WHY SO MANY COPS IS IT A RESPONSE TO THE VIOLENCE IN OUR STREETS A FASCINATION WITH AUTHORITY FIGURES OR JUST A GOOD EXCUSE TO SHOW PEOPLE GETTING BLOWN AWAY MY GUESS IS THAT PRODUCERS BELIEVE THE SIMPLEST WAY TO PUMP ADRENALINE THROUGH THE TV SCREEN IS AT THE POINT OF A GUN THEY CALL IT ACTION BUT IT OFTEN LOOKS A LOT LIKE BLOOD NOW NBC THE HOME OF THE MORE REFINED POLICE DRAMA OFFERS UP YET ANOTHER ONE THE INTRIGUINGLY TITLED CRIME AND PUNISHMENT WEDNESDAY 1011 PM EST THEN THURSDAYS 1011 PM AS IT TURNS OUT THERE'S NO RASKOLNIKOV SKULKING AROUND HERE NO MORAL DILEMMAS ANYWHERE IN SIGHT BUT CRIME AND PUNISHMENT DOES PROVIDE AN INTERESTING STYLISTIC TWIST UNDER EXECUTIVE PRODUCER DICK WOLF YOU MAY REMEMBER DICK WOLF MR HALF AND HALF HE'S THE CREATOR OF LAW AND ORDER THE SHOW THAT'S HALF COPS HALF DISTRICT ATTORNEYS HALF SPENT TRACKING DOWN THE PERPS HALF TRYING THEM IN COURT WITH CRIME AND PUNISHMENT MR WOLF GOES 5050 ONCE AGAIN HERE THE FIRST PART TELLS THE STORY OF THE CRIMINALS COMMITING THE CRIME THE SECOND PART CENTERS ON THE COPS TRYING TO SOLVE IT IN THE OPENING EPISODE A CHIEF EXECUTIVE OFFICER IS ABDUCTED ON HIS WAY TO WORK DETECTIVES REY RACHEL TICOTIN AND O'DONNELL JON TENNEY ARE CALLED IN TO INVESTIGATE BUT THERE'S NO RANSOM DEMAND NO APPARENT MOTIVE FOR THE KIDNAPPING THE APPARENTLY UNRELATED MURDER OF A PARKINGLOT ATTENDANT OFFERS THE FIRST CLUES BUT TIME IS RUNNING OUT FOR THE DETECTIVES AS THEY ATTEMPT TO UNRAVEL THE PLOT AND SAVE THE EXECUTIVE'S LIFE A SUBSEQUENT SHOW FOLLOWS A TEAM OF MASTER CRIMINALS PUTTING TOGETHER A 15 MILLION JEWEL ROBBERY EVERY DETAIL IS REMARKABLY ORCHESTRATED BLUEPRINTS TIMETABLES EVEN A PHONY LAS VEGAS VACATION FOR THE NEIGHBORS A CRUMPLED BAGGAGECLAIM TICKET OFFERS REY AND O'DONNELL THEIR ONLY HINT THE ACTION IN CRIME AND PUNISHMENT IS DRIVEN ALONG BY AN INNOVATIVE STORYTELLING DEVICE FROM TIME TO TIME AS THE STORY UNFOLDS DETECTIVES AND CRIMINALS ARE INTERVIEWED INTERROGATED BY AN UNSEEN QUESTIONER JAMES SLOGAN THEY RESPOND DIRECTLY TO THE CAMERA FACING STRAIGHT INTO THE SCREEN IT'S A FOURTHWALLBUSTING TECHNIQUE THAT'S ONLY RARELY BEEN TRIED MOST RECENTLY ON GRAPEVINE BUT WHEN IT WORKS IT OPENS A WINDOW ON THE CHARACTERS' THOUGHTS THE BEST TOUCH IS THAT BOTH THE CROOKS AND THE COPS SEEM TO RESENT THE GRILLING LOOK I DON'T NEED THIS I DON'T WANT TO DO THIS ANYMORE THERE'S AN IMPLICIT ANTAGONISM AS THE CHARACTERS FACE THE SCREEN LOOKING UNHAPPY ABOUT THE INTRUSION BUT STYLE ASIDE CRIME AND PUNISHMENT LACKS THE CRISPNESS THE EDGE OF LAW AND ORDER THE CRIME HALF ALWAYS SEEMS TO BE MORE COMPELLING THAN THE DETECTION EACH EPISODE STARTS WITH A BANG AS WE LEAP INTO A CRIME IN PROGRESS THE PLANNING THE EXECUTION WITH THE NARRATIVE DRIVE OF A GREAT TRAIN ROBBERY OR TOPKAPI BUT AS SOON AS WE GET TO THE POLICE THE DRAMA SEEMS TO FIZZLE AS IF ALL THE WRITERS' ENERGY WAS SAPPED PLANNING THE CAPER THE PROBLEM EXTENDS TO THE CHARACTERS WHILE THE CRIMINALS HERE ARE INTRIGUINGLY DRAWN THE SLEUTHS ARE STRICTLY COOKIECUTTER COPS CRIME MAY NOT PAY BUT IT SURE LOOKS MORE INTERESTING ON THIS SHOW PAUL SIMON IS THE MOST BITTERSWEET OF OUR POPULAR SONGWRITERS HIS LILTING MELODIES CONSTANTLY UNDERCUT BY HIS TART LYRICS HE IS ONE OF THE FEW ROCK SUPERSTARS WHOSE INTELLIGENCE REVERBERATES AS LOUDLY AS HIS BACKBEAT WHICH IS WHY IT'S A PLEASURE TO SEE THE FIRST MUSICAL BIOGRAPHY OF PAUL SIMON BORN AT THE RIGHT TIME PBS MARCH 6 911 PM EST AS THE FIRST OFFERING OF THE SEVENTH SEASON OF AMERICAN MASTERS PRODUCERS SUSAN LACY AND SUSAN STEINBERG FOLLOWED MR SIMON ON HIS 19911992 WORLD TOUR AND THEY INTERWEAVE CONCERT FOOTAGE WITH THE STORY OF HIS LIFE FROM PS 164 IN QUEENS TO BLEECKER STREET AND ON TO AFRICA AND BRAZIL ALL TOLD IN THE WORDS OF MR SIMON AND HIS FRIENDS ART GARFUNKEL LORNE MICHAELS MIKE NICHOLS AND THE SINGERS OF LADYSMITH BLACK MAMBAZO AMONG OTHERS IT'S A CAREER THAT SPANS SCHOOLBOY ROCK TOM AND JERRY'S HEY SCHOOLGIRL FOLK ROCK SIMON AND GARFUNKEL ALL THE WAY UP TO WORLD MUSIC RHYTHM OF THE SAINTS BUT THE EMPHASIS HERE IS ON THE INTERNATIONAL ZULU SOUL BAHIA RHYTHM FOR A POP COMPOSER MR SIMON IS REFRESHINGLY ARTICULATE AND THIS DOCUMENTARY IS AT ITS MOST INSIGHTFUL WHEN HE DESCRIBES HIS WRITING PROCESS BUT UNFORTUNATELY BORN AT THE RIGHT TIME DOESN'T EXACTLY KNOW WHERE TO FOCUS THE FILM GIVES EQUAL WEIGHT TO WONDERFUL ARCHIVAL FOOTAGE AND TANGENTIAL MATERIAL GARNERED JUST BECAUSE THE CAMERAS HAPPENED TO BE THERE SUCH AS ONE LONG DIGRESSION ABOUT THE DEATH OF A BACKUP SINGER AFTER FOLLOWING MR SIMON FOR A YEAR THE PRODUCERS HAVE A TON OF MATERIAL SOME OF IT QUITE DRAMATIC THE THREATS SURROUNDING MR SIMON'S SOUTH AFRICAN CONCERTS PSYCHOLOGICAL INSIGHTS AND LOTS OF MUSIC TOO BUT THE PROPORTIONS SEEM WRONG EVEN AFTER TWO HOURS THE VIEWER FEELS STRANGELY SHORTCHANGED AN EXTRA TECHNICAL FLAW IS THE MUDDIED SOUND QUALITY OF SOME OF THE ONTHEROAD CONCERT FOOTAGE STILL ALMOST ANYTHING CAN BE FORGIVEN IN JUST ONE INSTANT PAUL AND ARTIE TOGETHER AGAIN RECENTLY LOOKING BACK THROUGH THE SOFT MELANCHOLY OF MR SIMON'S WORDS TIME IT WAS AND WHAT A TIME IT WAS I HAVE A PHOTOGRAPH 9303010008 930301 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY HAS ORDERED A NATIONWIDE FREEZE OF ITS MAKEWORK PROGRAMS WHICH ARE DESIGNED TO ALLEVIATE SOARING UNEMPLOYMENT AND SOCIAL UNREST IN THE EASTERN REGION BUT WHICH HAVE BEEN HAMSTRUNG BY EFFORTS TO TAME THE FEDERAL BUDGET DEFICIT SINCE GERMANY WAS REUNIFIED IN 1991 THE LABOR AGENCY'S WORKCREATION MEASURES HAVE SPAWNED HUNDREDS OF THOUSANDS OF JOBS THOUGH THE PROGRAM HAS OFFSET MUCH HARDSHIP IN ECONOMICALLY DEVASTATED EASTERN GERMANY IT HASN'T KEPT UP WITH THE FASTER PACE OF JOB LOSSES THERE THE PROGRAM'S ENTIRE 1993 ALLOCATION OF 99 BILLION MARKS 605 BILLION 86 OF IT FOR EASTERN GERMANY HAS ALREADY BEEN COMMITTED IN JANUARY 324000 EASTERN GERMANS HELD MAKEWORK JOBS WHILE REGIONAL UNEMPLOYMENT WAS 151 AND ENROLLMENT TOTALED 63000 IN WESTERN GERMANY WHERE THE JOBLESS RATE WAS 83 SEPARATELY WESTERN GERMAN BANKS AND UNIONS REPRESENTING 430000 WORKERS AGREED TO AN AVERAGE 35 PAY RAISE OVER 12 MONTHS RETROACTIVE TO FEB 1 THE AGREEMENT EXCEEDS THE 3 PACT REACHED BY THE WESTERN REGION'S 28 MILLION GOVERNMENT WORKERS SALES OF REAL ESTATE OWNED BY THE GERMAN GOVERNMENT AND THE TWO REGIONAL RAILWAYS COULD TOTAL 60 BILLION MARKS 3667 BILLION THE FINANCE MINISTRY SAID THE SUM COULD GROW SIGNIFICANTLY IF GERMANY SELLS PART OF THE TELECOMMUNICATIONS MONOPOLY DEUTSCHE BUNDESPOST TELEKOM PROPOSALS FOR PROPERTY SELLOFFS ARE TO BE MADE BY THE END OF THIS MONTH MOSCOW'S MAYOR HAS ORDERED THAT ALL OUTDOOR ADVERTISING IN A FOREIGN LANGUAGE MUST HAVE A RUSSIAN TRANSLATION COLORFUL SIGNS AND BILLBOARDS IN FOREIGN LANGUAGES MOSTLY ENGLISH HAVE BLOSSOMED IN THE RUSSIAN CAPITAL SINCE THE SOVIET UNION CRUMBLED AFTER BEING SUBJECTED FOR DECADES TO SHORTAGES AND SHODDY PRODUCTS RUSSIANS HAVE LONG SHOWN A PREFERENCE FOR WESTERN MERCHANDISE AND FOREIGN GOODS HAVE FLOWED INTO THE COUNTRY YUGOSLAVIA'S INFLATION RATE ROSE TO A RECORD 211 LAST MONTH AS THE ECONOMY CONTINUED TO BE BATTERED BY PRINTING OF MONEY TO PAY FOR WARS IN BOSNIA AND CROATIA AND BY UNITED NATIONS SANCTIONS ON TRADE MONTHLY INFLATION WAS ONLY 5 IN FEBRUARY 1991 JUST BEFORE THE YUGOSLAV FEDERATION WAS SHATTERED SINCE FEBRUARY 1992 ANNUAL INFLATION HIT 25000 AVERAGE MONTHLY WAGES IN THE COUNTRY WHICH NOW CONSISTS OF SERBIA AND MONTENEGRO FELL TO 50 LAST MONTH FROM 500 A YEAR EARLIER UNEMPLOYMENT IS ABOUT 40 ITALY'S ANTITRUST AGENCY RECOMMENDED ENDING IMMEDIATELY THE STATE TELEPHONE COMPANY'S MONOPOLY ON THE FASTGROWING MOBILE PHONE NETWORK IT SAID ANY FURTHER DELAY IN OPENING UP THE CELLULAR MARKET WOULD HANDICAP FUTURE OPERATORS IN CATCHING UP COMPETITIVELY WITH SOCIETA ITALIANA PER L'ESERCIZIO DELLE TELECOMMUNICAZIONI PA SIP HAS ARGUED THAT A 1984 GOVERNMENT CONTRACT ENTITLES IT TO A CELLULARPHONE MONOPOLY UNTIL THE YEAR 2004 BUT THE AGENCY SAID LIBERALIZING THE SECTOR WOULD BROADLY BENEFIT TELECOMMUNICATIONS INCLUDING FACSIMILE AND DATA TRANSMISSIONS SINGAPORE PROPOSED A BUDGET FOR THE YEAR STARTING APRIL 1 THAT IS GEARED HEAVILY TOWARD BEEFING UP EDUCATION HEALTH CARE ENVIRONMENTAL PROTECTION COMMUNITY DEVELOPMENT AND PUBLIC HOUSING THESE OUTLAYS ACCOUNT FOR 40 OF THE 155 BILLION SINGAPOREDOLLAR US943 BILLION BUDGET WITH NATIONAL SECURITY GETTING 33 TAX RATES WOULD BE CUT TO 27 FROM 30 FOR CORPORATIONS AND IN A SURPRISE TO A 30 MAXIMUM FROM 33 FOR INDIVIDUALS CHINA'S PRESTIGIOUS ACADEMY OF SOCIAL SCIENCES A BASTION OF MARXISTLENINIST RESEARCH HAS PROPOSED A MAKEOVER THAT INCLUDES THE STUDY OF CAPITALIST PRINCIPLES AND THEIR APPLICATION IN THE MARKETPLACE THE NATIONAL ACADEMY WHICH HAS ABOUT 5000 STAFF MEMBERS INTENDS TO FOCUS ON SOCIALIST MARKET ECONOMICS THE XINHUA NEWS AGENCY SAID WITH INTERNATIONAL AFFAIRS RESEARCHERS EXAMINING POSTWAR CAPITALIST EVOLUTION AND THE LIBERAL ARTS STAFF FOCUSING ON MARKET PRACTICES FOR A SOCIALIST CULTURE THE STAFF ALSO WOULD BE ENCOURAGED TO ESTABLISH JOINT VENTURES WITH ENTERPRISES AND PROVIDE THEM SERVICES FOR FEES ACADEMIC CONTROLS WOULD BE RELAXED TO FOSTER A MORE COMPETITIVE MANAGEMENT SYSTEM SEPARATELY A TOP ECONOMIC OFFICIAL SAID CHINA'S ECONOMY ISN'T OVERHEATED BUT ACKNOWLEDGED TROUBLING SIGNS OF TOOSPEEDY GROWTH HE SAID THE GOVERNMENT WOULD FINETUNE LOANS AND THE MONEY SUPPLY TO MAINTAIN STABILITY THOUGH MARKET FORCES INCREASINGLY ARE PLAYING A LEADING ROLE SINGAPORE'S PARLIAMENT BANNED CIGARETTE SALES TO YOUTHS UNDER 18 AND PROHIBITED THEM FROM SMOKING IN PUBLIC IT ALSO BARRED TOBACCO SALES FROM VENDING MACHINES BRITAIN ORDERED TIGHTER AIRLINE SECURITY FOR CHECKED LUGGAGE CONTROLS TO AUTHORIZE AND ACCOUNT FOR EVERY UNACCOMPANIED BAG MAY BE INTRODUCED BY YEAR END WITH HOPES OF NATIONWIDE SCREENING BY EARLY 1996 THIS MAY NECESSITATE NEW COMPUTER TECHNOLOGY WHICH ALSO COULD HELP CUT DOWN ON LOST AND MISDIRECTED BAGS 9303010007 930301 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY TWO BILLION CANADIAN DOLLARS US160 BILLION OF 7 BONDS DUE MARCH 15 1995 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9303010006 930301 LAW LEGAL BEAT CONCERNS FIND IT HARDER TO LEAVE TOWN AFTER RECEIVING TAX BREAKS BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BECOMING HARDER FOR COMPANIES TO MOVE OUT OF TOWN MUNICIPALITIES ARE FED UP WITH COMPANIES THAT GET BIG TAX BREAKS AND THEN LEAVE TOWN WITHIN A FEW YEARS NOW THEY'RE FIGHTING BACK SOME MUNICIPALITIES ARE DEMANDING LONGTERM COMMITMENTS IN RETURN FOR TAX ABATEMENTS LOWINTEREST LOANS AND OTHER FINANCIAL INDUCEMENTS OTHER TOWNS AND STATES ARE GOING TO COURT NEW YORK STATE'S COMMISSIONER OF ECONOMIC DEVELOPMENT FOR EXAMPLE IS CONSIDERING SUING GENERAL MOTORS CORP WHICH HAS ANNOUNCED PLANS TO CLOSE A PLANT IN NORTH TARRYTOWN NY AND ELIMINATE 3400 JOBS THE TOWN OFFERED GM TAX ABATEMENTS WHEN IT THREATENED TO CLOSE ITS PLANT IN THE 1980S NOT TOO LONG AGO SUCH A SUIT WOULD NOT HAVE BEEN PRACTICAL BUT NEW YORK STATE OFFICIALS ARE TAKING HEART FROM A RULING BY A MICHIGAN TRIAL JUDGE THAT HAS HALTED AT LEAST TEMPORARILY GM'S PLANS TO CLOSE ITS PLANT IN YPSILANTI MICH THE JUDGE RULED THAT GM HAD MADE AN IMPLIED PROMISE TO STAY PUT WHEN IT ACCEPTED YPSILANTI'S INDUCEMENT OF 13 MILLION IN TAX ABATEMENTS IN 1984 AND 1988 THE JUDGE RULED THAT THE COMMITMENTS WERE MADE BY GM DURING TWO PUBLIC HEARINGS AND HE SAID SINCE GM HAD NOT CLAIMED IT WAS CLOSING THE PLANT FOR ECONOMIC REASONS IT HAD NO DEFENSE IN THE CASE LEE SCHUTZMAN A LAWYER FOR GM SAYS THAT THE COMPANY NEVER MADE ANY SPECIFIC PROMISES IN YPSILANTI AND THAT GM WILL APPEAL HE ADDS THAT GM NEVER MADE A COMMITMENT TO KEEP THE NORTH TARRYTOWN PLANT OPEN BEYOND 1995 EITHER MANY MUNICIPALITIES CONSIDERING GOING TO COURT HAVE A MAJOR HURDLE TO OVERCOME FOR MORE THAN A DECADE COMPANIES HAD THE UPPER HAND IN NEGOTIATIONS WITH JOBHUNGRY COMMUNITIES WINNING HEFTY SUBSIDIES IN EXCHANGE FOR VAGUE PROMISES MANY DEALS WERE SEALED WITH A HANDSHAKE MUNICIPALITIES LATER FOUND THAT THE ORAL AGREEMENTS WERE HARD TO MAKE STICK IN COURT IN THE YPSILANTI CASE JUDGE DONALD E SHELTON GOT AROUND THAT PROBLEM BY INVOKING THE LEGAL DOCTRINE OF PROMISSORY ESTOPPEL UNDER THIS DOCTRINE A JUDGE CAN ENFORCE ORAL PROMISES THAT CAUSE A PARTY TO ACT TO ITS DETRIMENT SUCH AS BY GRANTING TAX ABATEMENTS BUT NOT ALL COURTS HAVE SEEN IT THAT WAY THE ARGUMENT FAILED FOR EXAMPLE WHEN IT WAS TRIED BY NORWOOD OHIO WHICH SUED GM OVER A PLANT CLOSING IN 1987 STANLEY M CHESLEY A PARTNER WITH THE CINCINNATI LAW FIRM WAITE SCHNEIDER BAYLESS & CHESLEY WHICH REPRESENTED NORWOOD SAYS THE YPSILANTI RULING MIGHT BE A HARBINGER OF THE JUDICIARY'S CHANGING VIEWS OF SUCH PROMISES BECAUSE THERE'S NOTHING LIKE LEGAL PRECEDENT TO CAUSE OTHER TOWNS TO LOOK THAT WAY RECENTLY LEGISLATORS HAVE BECOME MORE SAVVY IN THEIR DEALINGS WITH COMPANIES LOUISIANA OHIO AND TEXAS AS WELL AS SOME MUNICIPALITIES HAVE PASSED LAWS REQUIRING COMPANIES TO COMPENSATE MUNICIPALITIES FOR FINANCIAL INDUCEMENTS IF THEY MOVE OUT OF TOWN PREMATURELY THE LONGTERM COMMITMENTS AND REIMBURSEMENT OBLIGATIONS ARE SET FORTH IN CAREFULLY DRAFTED CONTRACTS OTHER STATES AND COMMUNITIES WILL PROBABLY FOLLOW THEIR EXAMPLE IN WASHINGTON STATE WHERE GRASSROOTS ORGANIZATIONS ARE LOBBYING FOR A LAW THAT WOULD PLACE A HOST OF RESTRICTIONS ON COMPANIES CHARLES BEST WITH THE SEATTLE WORKERS CENTER SAYS THE MICHIGAN RULING CERTAINLY GIVES US AMMUNITION TO TALK TO OUR LEGISLATORS ABOUT THE CONCEPT OF BUSINESS BEING RESPONSIBLE TO COMMITMENT BASED ON PROMISES MADE IN THE WAKE OF NEW LEGISLATION GM HAS ENTERED INTO AN AGREEMENT WITH ARLINGTON TEXAS THAT OFFERS THE TOWN GREATER PROTECTIONS THAN MANY COMMUNITIES HAVE HAD IN THE PAST IN 1991 IT SIGNED A 10YEAR CONTRACT UNDER WHICH THE TOWN CAN SEEK TO RECOVER ALL THE ABATED TAXES IF GM CLOSES ITS PLANT WITHIN FIVE YEARS TERESA THOMPSON ASSISTANT TO ARLINGTON'S CITY MANAGER SAYS THE CITY LEADERS BELIEVE THEY HAVE A FAIR DEAL WE WERE AS TOUGH AS WE NEEDED TO BE SHE SAYS IF THE FOOD AND DRUG ADMINISTRATION STRINGENTLY REGULATES A MEDICAL DEVICE PEOPLE GENERALLY CAN'T SUE ALLEGING INJURIES FROM IT A FEDERAL APPEALS COURT RULED ANOTHER FEDERAL APPEALS COURT RULED SIMILARLY LAST MONTH THE TWO DECISIONS IF THEY INFLUENCE OTHER COURTS COULD SHARPLY CURTAIL SUITS BY PLAINTIFFS WHO CLAIM THAT DEVICES WERE NEGLIGENTLY DESIGNED OR THAT THE MANUFACTURER FAILED TO GIVE ADEQUATE WARNINGS ABOUT SIDE EFFECTS AND OTHER HEALTH RISKS THE MOST RECENT RULING CAME FROM THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS AND DIRECTLY AFFECTS TEXAS LOUISIANA AND MISSISSIPPI THE OTHER DECISION BY THE FIRST US CIRCUIT COURT OF APPEALS IN BOSTON APPLIED TO PLAINTIFFS IN MAINE MASSACHUSETTS NEW HAMPSHIRE RHODE ISLAND AND PUERTO RICO THE DECISIONS DON'T APPLY TO DRUGS WHICH ARE REGULATED BY A DIFFERENT SET OF FEDERAL LAWS BOTH RULINGS CAME IN SUITS AGAINST COLLAGEN CORP PALO ALTO CALIF BY WOMEN WHO USED ZYDERM A WRINKLE TREATMENT THAT IS INJECTED UNDER THE SKIN BOTH WOMEN SAY THEY DEVELOPED A RARE AUTOIMMUNE DISEASE BECAUSE OF THE TREATMENTS IN THE MORE RECENT OPINION A THREEJUDGE PANEL OF THE FIFTH CIRCUIT SAID FEDERAL REGULATORY APPROVAL OF ZYDERM BARS MORE AGGRESSIVE STATE REGULATION OR LAWSUITS BASED ON STATE LAW FOR CLAIMS INCLUDING DEFECTIVE DESIGN INADEQUATE WARNINGS AND NEGLIGENCE UNLIKE THE OTHER APPEALS COURT THE FIFTH CIRCUIT DIDN'T CONSIDER ALLEGATIONS OF BREACH OF WARRANTY AND FRAUD ZYDERM BELONGS TO A GROUP OF MEDICAL DEVICES WHICH ALSO INCLUDES HEART VALVES AND LENS IMPLANTS THAT THE FDA CLASSIFIES AS NEEDING GREATER SCRUTINY TO ENSURE SAFE USE COLLAGEN FACES A HANDFUL OF SIMILAR LAWSUITS IN COURTS AROUND THE COUNTRY SAID JOE W REDDEN A HOUSTON ATTORNEY WHO REPRESENTED THE COMPANY CERTAINLY I THINK THIS WILL HAVE THE EFFECT OF PREEMPTING ALL THOSE CASES HE SAID IN RECENT YEARS THE FDA'S APPROVAL PROCESS HAS BEEN CRITICIZED AS LAX NOW SOME LAWYERS WORRY THAT BY SHIELDING MANUFACTURERS FROM LIABILITY THE APPEALSCOURT RULINGS MAY MAKE COMPANIES LESS VIGILANT ABOUT PRODUCT SAFETY JOHN M O'QUINN AN ATTORNEY FOR THE PLAINTIFF COULDN'T BE REACHED TO COMMENT AN ATTORNEY FOR THE PLAINTIFF IN THE OTHER CASE HAS SAID SHE WILL SEEK A REVIEW FROM THE US SUPREME COURT SURVEILLANCE TAPES ARE OFTEN USED TO GATHER EVIDENCE FOR DIVORCE CASES BUT A NEW YORK COURT DECISION MAKES IT LESS LIKELY THAT SUCH TAPES WOULD RESULT IN ANY COURTROOM SURPRISES FOR SPOUSES A MANHATTAN TRIAL JUDGE ORDERED A HUSBAND TO TURN OVER AUDIO AND VIDEO TAPES THAT PRIVATE INVESTIGATORS MADE OF HIS WIFE IN PREPARATION FOR THEIR DIVORCE CASE THE RULING BY JUDGE JACQUELINE SILBERMANN IS BELIEVED TO BE THE FIRST WRITTEN DECISION IN NEW YORK ON THE ISSUE JUDGE SILBERMANN SAID THE WIFE NEEDED ACCESS TO THE TAPES TO TEST WHETHER THEY ARE LEGITIMATE UNLIKE PHOTOGRAPHS WHICH THE JUDGE SAID DON'T HAVE TO BE TURNED OVER BEFORE TRIAL VIDEOTAPES AND AUDIO RECORDINGS CAN EASILY BE TAMPERED WITH OR EDITED IN DIVORCE CASES SURVEILLANCE TAPES CAN BE USED TO BACK UP SUCH ALLEGATIONS AS ADULTERY OR THAT A PARENT ISN'T FIT TO HAVE CUSTODY OF A CHILD IN THE CASE BEFORE JUDGE SILBERMANN THE TAPES WERE TO BE USED IN A CUSTODY DISPUTE HELENE BREZINSKY AN ATTORNEY AT THE NEW YORK LAW FIRM ROSENMAN & COLIN WHICH REPRESENTED THE WIFE SAID IT IS IMPORTANT TO HAVE ACCESS TO THE TAPES IN ORDER TO FULLY PREPARE FOR TRIAL AND TO HAVE SUFFICIENT TIME TO CHECK THEIR VALIDITY THE HUSBAND'S ATTORNEY ROBERT S COHEN OF NEW YORK LAW FIRM MORRISON COHEN SINGER & WEINSTEIN SAID THE TAPES WILL BE TURNED OVER BUT HE PLAYED DOWN THEIR IMPORTANCE IN THE CASE HE SAID HE WAS PLEASED THAT THE PHOTOGRAPHS DIDN'T HAVE TO BE TURNED OVER IN HER RULING THE JUDGE SAID THE TAPES CAN'T BE TURNED OVER UNTIL THE SPOUSE WHO WAS UNDER SURVEILLANCE HAS BEEN QUESTIONED IN A FACTFINDING INTERVIEW OR DEPOSITION OTHERWISE THE SPOUSE COULD TAILOR TESTIMONY SO THAT IT DOESN'T CONFLICT WITH THE TAPES ROBERT Z DOBRISH A MATRIMONY ATTORNEY NOT INVOLVED IN THE CASE SAID THAT TAMPERING OF TAPES IS A VALID CONCERN BUT MR DOBRISH OF THE NEW YORK LAW FIRM HOFFINGER FRIEDLAND DOBRISH BERNFELD STERN ADDED AS SOON AS YOU TELL THE OTHER SIDE THE EFFECTIVENESS OF THE EVIDENCE IS MINIMIZED TO SOME EXTENT BECAUSE THEY CAN PREPARE FOR IT HE SAID MANY OTHER STATES GENERALLY MAKE IT EASIER TO OBTAIN SUCH EVIDENCE BEFORE TRIAL CHERVIN VS CHERVIN NEW YORK STATE SUPREME COURT INDEX NO NOTED TIMOTHY M MUCCIANTE A DETROIT LAWYER CONVICTED OF FRAUD FOR A SCHEME INVOLVING SALES OF CONDOMS TO THE FORMER SOVIET UNION AND CHICKENS TO SAUDI ARABIA WAS SENTENCED TO NEARLY SIX YEARS IN PRISON I HAVE NEVER IN YEARS AS A PROSECUTOR IN YEARS OF PRACTICE OF LAW AND IN 15 YEARS AS JUDGE SEEN ANYONE WHO WAS MORE TOTALLY COMMITTED TO CONARTISTRY THAN THE DEFENDANT US DISTRICT JUDGE PIERRE N LEVAL OF NEW YORK SAID HE ALSO ORDERED MR MUCCIANTE WHO WAS THE SUBJECT OF FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL TO PAY 973500 IN RESTITUTION TO DEFRAUDED INVESTORS AND A 50000 FINE SEE RELATED STORY CROSS A DIET DOCTOR AND A GLIB ATTORNEY GET A FAT LAWSUIT DR BERGER BIG IN FIELD SAYS LAWYER OFFERED CHICKENAND THEN ATE HIS LUNCH WSJ JUNE 3 1993 MR MUCCIANTE WAS ALSO CONVICTED LAST JUNE BY A FEDERAL JURY IN NEW YORK OF PASSING 326 MILLION AUSTRALIAN DOLLARS US23 MILLION IN COUNTERFEIT BONDS 9303010005 930301 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA REBECCA S ALLEN 51 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BARNETT BANK OF SOUTHWEST FLORIDA ON APRIL 1 MS ALLEN IS CURRENTLY CHIEF OPERATING OFFICER OF FIRST FLORIDA BANK NA A SUBSIDIARY OF BARNETT BANKS INC MS ALLEN SUCCEEDS FREDERICK WEST WHO BECAME HEAD OF THE COMPANY'S RETAIL BANKING DIVISION 9303010004 930301 WHO'S NEWS FAILURE GROUP INC FAILURE GROUP INC MENLO PARK CALIF EDWARD KEITH 57 YEARS OLD WAS NAMED CHAIRMAN AND MICHAEL GAULKE 47 WAS NAMED PRESIDENT OF THIS ENGINEERING CONSULTING FIRM MR KEITH WHO WAS AN OUTSIDE DIRECTOR AND MR GAULKE WHO REMAINS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER BOTH ASSUME POSTS FORMERLY HELD BY ROGER MCCARTHY WHO HAS DECIDED TO CONCENTRATE ON HIS DUTIES AS CHIEF EXECUTIVE OFFICER THE COMPANY SAID 9303010003 930301 JANUARY ORDERS FOR MACHINE TOOLS DECLINED BY 15 BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS DECLINED 15 TO 1753 MILLION IN JANUARY FROM DECEMBER LEVELS AS CUSTOMERS APPARENTLY FRETTED OVER THE ECONOMY AND THE PROPOSED INVESTMENT TAX CREDIT ORDERS ALSO FELL 194 WHEN COMPARED WITH JANUARY 1992 ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY A MACHINETOOL INDUSTRY GROUP MACHINETOOL ORDERS ARE CONSIDERED AN ECONOMIC INDICATOR SINCE THE PRODUCTS ARE SHIPPED NINE TO 18 MONTHS LATER MACHINE TOOLS CUT AND FORM METAL PARTS FOR A WIDE RANGE OF INDUSTRIES THERE IS JUST SOME HESITATION ABOUT HOW GOOD THE RECOVERY IS SAID WILLIAM G COPELAND OF COPELAND ECONOMICS IN STAMFORD CONN PLUS THE MACHINETOOL INDUSTRY'S CUSTOMERS MANUFACTURERS REMAIN UNCERTAIN ABOUT THE BENEFITS OF PRESIDENT CLINTON'S PROPOSED INVESTMENT TAX CREDIT MR COPELAND SAID INDEED SOME MACHINETOOL MAKERS WONDER WHETHER THE TAX CREDIT WILL HAVE MUCH OF AN IMPACT MANUFACTURERS BUY THIS STUFF WHEN THEY REALLY HAVE A NEED SAID EDWARD AVILDSEN PRESIDENT OF WALLACE COAST MACHINERY CO IN BELLWOOD ILL STILL INDUSTRY EXECUTIVES AND EXPERTS ARE OPTIMISTIC ABOUT 1993 BECAUSE SEVERAL FUNDAMENTALS KEY TO INCREASING ORDERS REMAIN IF IT'S NOT JANUARY IT'S APRIL MAY OR JUNE SAID MR COPELAND IT'S ABOUT TO HAPPEN THE ECONOMY IS IMPROVING AND ORDERS FOR DURABLE GOODS HAVE INCREASED RECENTLY WHICH COULD PUSH MANUFACTURERS TO BUY MORE MACHINE TOOLS TO MAKE THEIR PRODUCTS MOREOVER US MANUFACTURERS NEED TO BOOST SPENDING ON PRODUCTIVITY ENHANCING EQUIPMENT LIKE MACHINE TOOLS AFTER A DECADE OF SPENDING TOO LITTLE SAID MR COPELAND AT WELDON MACHINE TOOL INC IN YORK PA ORDERS HAVE PICKED UP AFTER A SLOW JANUARY SAID JAMES D FLINCHBAUGH PRESIDENT THAT'S ENCOURAGED HIM ABOUT THE REST OF THE YEAR IN JANUARY DOMESTIC MACHINETOOL ORDERS FELL 177 TO 14145 MILLION FROM DECEMBER ORDERS FOR EXPORT FELL 13 TO 338 MILLION IN THE SAME PERIOD COMPARED WITH JANUARY 1992 DOMESTIC ORDERS WERE OFF 307 ONLY ORDERS FOR EXPORT WHEN COMPARED WITH JANUARY LAST YEAR SHOWED IMPROVEMENT THEY MORE THAN DOUBLED TO 338 MILLION THAT PERFORMANCE WAS DISPLAYED AT WALLACE COAST MACHINERY WHERE ORDERS FOR EXPORT ESPECIALLY TO THE MIDDLE EAST EXHIBITED STRENGTH RECENTLY SAID MR AVILDSEN BUT WITH THE ECONOMY STILL SUFFERING IN EUROPE AND JAPAN EXPERTS EXPRESSED DOUBT ABOUT ANY SUSTAINED INCREASE IN MACHINETOOL ORDERS FOR EXPORT ONEMONTH TOTAL FOR 1993 125650000 FOR 1992 158550000 ONEMONTH TOTAL FOR 1993 49600000 FOR 1992 58850000 ONEMONTH TOTAL FOR 1993 165400000 FOR 1992 106250000 ONEMONTH TOTAL FOR 1993 82300000 FOR 1992 53550000 9303010002 930301 BUSINESS BRIEF GENERAL SEKIYU KK PRETAXPROFIT FORECAST RISES 22 NET ESTIMATE FALLS 52 GENERAL SEKIYU KK TOKYO REVISED ITS CONSOLIDATED PRETAX PROFIT FORECAST FOR THE FISCAL YEAR ENDING MARCH 31 UPWARD BY 22 FRIDAY WHILE ADJUSTING ITS NETINCOME FORECAST DOWNWARD BY 52 THE OIL REFINER AND DISTRIBUTOR AFFILIATED WITH EXXON CORP SAID THAT FOR THE YEAR IT NOW SEES PRETAX PROFIT REACHING 22 BILLION YEN 1872 MILLION UP FROM ITS FORECAST LAST MAY OF 18 BILLION YEN THE IMPROVEMENT RESULTS FROM EXPECTED SALES OF 535 BILLION YEN UP 29 FROM THE 520 BILLION YEN IN THE EARLIER FORECAST A COMPANY SPOKESMAN SAID HOWEVER THE GROUP'S NET IS EXPECTED TO BE 10 BILLION YEN FOR THE SAME PERIOD DOWN FROM ITS ORIGINAL FORECAST OF 21 BILLION YEN THE COMPANY ATTRIBUTED THE LOWER NET PROFIT TO DECLINING PROPERTY SALES WHICH WERE EXPECTED TO YIELD EXTRAORDINARY PROFITS FOR THE GROUP A YEAR EARLIER THE GROUP HAD PRETAX PROFIT OF 1779 BILLION YEN NET OF 1001 BILLION YEN AND SALES OF 52522 BILLION YEN 9303010001 930301 WHO'S NEWS AETNA LIFE & CASUALTY AETNA LIFE & CASUALTY CO HARTFORD CONN BARBARA HACKMAN FRANKLIN WHO SERVED AS COMMERCE SECRETARY IN THE BUSH ADMINISTRATION WAS NAMED A DIRECTOR AT THIS INSURANCE CONCERN INCREASING BOARD MEMBERSHIP TO 11 MS FRANKLIN 52 YEARS OLD WAS A MEMBER OF AETNA'S BOARD FROM 1979 TO 1992 STEPPING DOWN AFTER SHE WAS CONFIRMED BY THE SENATE AS COMMERCE SECRETARY 9303010085 930201 REVIEW & OUTLOOK EDITORIAL HAILING THE AMERICAN DREAM ALL OVER AMERICA TAXICAB SERVICE IS MORE EXPENSIVE AND UNRELIABLE THAN IT SHOULD BE THE BIGGEST REASON IS THAT MOST CITIES SEVERELY LIMIT ENTRY INTO THE TAXICAB MARKET THIS CREATES DE FACTO MONOPOLIES THAT SHORTCHANGE THE CONSUMER AND FREEZE OUT ENERGETIC COMPETITORS LEROY JONES ANI EBONG GIRMA MOLALEGNE AND ROWLAND NWANKWO ARE FORMER CABDRIVERS WHO WANT TO START QUICK PICK CABS A NEW TAXI COMPANY IN DENVER COLORADO BUT THE STATE PUBLIC UTILITIES COMMISSION ALLOWS ONLY THREE CAB COMPANIES TO OPERATE IT HAS BLOCKED EVERY NEW APPLICANT FOR A LICENSE SINCE 1947 WHILE THE THREE INCUMBENT FIRMS COMPETE FOR FARES THEY WORK TOGETHER TO BLOCK NEW ENTRIES INTO THE MARKET IN FACT AT THE HEARING THAT DENIED QUICK PICK'S APPLICATION TWO OF THE THREE EXISTING COMPANIES HAD THE SAME LAWYER THE PLIGHT OF MR JONES AND HIS AFRICANIMMIGRANT PARTNERS ATTRACTED THE ATTENTION OF THE WASHINGTON DCBASED INSTITUTE FOR JUSTICE THE INSTITUTE HAS ALREADY WON CASES IN WHICH COURTS HAVE AGREED WITH IT THAT INDIVIDUALS HAVE A CIVIL RIGHT TO EARN A LIVING FREE FROM EXCESSIVE REGULATION MANY OF ITS CLIENTS ARE LOWINCOME MINORITIES BECAUSE MANY ECONOMIC REGULATIONS WERE PASSED DURING THE JIM CROW ERA IN PART TO BLOCK MINORITY ENTRY INTO VARIOUS OCCUPATIONS LAST WEEK THE INSTITUTE FILED A LAWSUIT CHALLENGING THE DENVER TAXICAB MONOPOLY AS UNCONSTITUTIONAL ITS SUIT WAS PROMPTLY SUPPORTED BY TWO OFFICIALS OF THE LOCAL NAACP CHAPTER ITS PRESIDENT MENOLA UPSHAW AND THE REV OSCAR TILLMAN POOR PEOPLE USE CABS A LOT MORE THAN RICH FOLKS AND YET SERVICE IN MY AREA IS SPOTTY AND INADEQUATE SAYS MR TILLMAN WHO IS ASSOCIATE PASTOR OF THE OLDEST AND LARGEST BLACK CHURCH IN COLORADO WE THINK A NEW CAB COMPANY WOULD PROVIDE BETTER SERVICE AND FORCE THE OTHERS TO COMPETE A HANDICAPPED GROUP UPSET AT THE POOR SERVICE ITS MEMBERS NOW RECEIVE IS ALSO BACKING THE SUIT DENVER'S TAXICAB MONOPOLY ISN'T UNIQUE NEARLY 90 OF CITIES WITH MORE THAN 50000 PEOPLE RESTRICT ENTRY IN SOME WAY NEW YORK OPERATES A NOTORIOUS MEDALLION SYSTEM WHICH LIMITS THE NUMBER OF YELLOW CABS TO 11800 MEDALLIONS CURRENTLY SELL FOR 140000 TOO STEEP A PRICE FOR MOST BUDDING ENTREPRENEURS WASHINGTON DC REPRESENTS THE OTHER EXTREME OF TAXI REGULATION ITS ZONE SYSTEM SET UP BY CONGRESSMEN WHO WANTED TO CROSS TOWN CHEAPLY MANDATES RATES SO LOW THAT SAVVY DRIVERS OFTEN QUIT THE BUSINESS BILL CLINTON'S NEW TRANSPORTATION SECRETARY IS FEDERICO PENA WHO WAS MAYOR OF DENVER UNTIL 1991 IN DENVER MR PENA WASN'T A FAN OF TAXI COMPETITION BUT HIS ATTITUDE COULD CHANGE NOW THAT THE CLINTON ADMINISTRATION IS ANXIOUS TO CREATE INNERCITY JOBS A STUDY BY HIS OWN DEPARTMENT OF TRANSPORTATION HAS FOUND THAT TAXICAB RESTRICTIONS COST CONSUMERS NEARLY 800 MILLION A YEAR REMOVING THOSE RESTRICTIONS WOULD ALSO CREATE 38000 NEW JOBS IN THE TAXI INDUSTRY AND UNLIKE WORK BUILDING ROADS OR FIXING BRIDGES TAXI JOBS WOULD LIKELY BE PERMANENT ADDITIONS TO THE LABOR FORCE SEE RELATED LETTER LETTERS TO THE EDITOR NEW YORK CABBIES WE ARE THE WORLD WSJ MARCH 3 1993 9302010079 9303010074 930204 LEISURE & ARTS THE MOBILE GUIDE SCOTTISH GALES CLEAN UP THE MESS THEY MADE BY PAUL LEVY LERWICK SHETLAND ISLANDS THE AIR FARE FROM LONDON TO SHETLAND MUST BE ONE OF THE HIGHEST IN EUROPE THE CHEAPEST TICKET IS 440 665 WHICH INVOLVES FLYING THE SECOND LEG OF THE JOURNEY FROM GLASGOW OR ABERDEEN TO SUMBURGH/LERWICK AIRPORT HERE IN A TWINPROPELLER 17SEATER LIGHT AIRCRAFT BUT THEN THE DISTANCE IS ENORMOUS FOR THESE PARTS MORE THAN 500 MILES THE ANSWER TO THE TRICK QUESTION WHAT'S THE CLOSEST RAILWAY STATION TO SHETLAND IS BERGEN NORWAY NEVER LEAVE YOUR CAR DOORS OR TRUNK OPEN IN SHETLAND MY HOSTESS ADMONISHED ME ON ARRIVAL I EXPRESSED SURPRISE THAT THE CRIME RATE WAS SO HIGH IN THIS ARCHIPELAGO TO THE NORTH OF SCOTLAND TO WHICH IT BELONGS ESPECIALLY ON THE WEST COAST OF MAINLAND ISLAND I WAS AT BURRASTOW HOUSE THE BEST HOTEL AND RESTAURANT IN SHETLAND AND THE MOST REMOTE ESTABLISHMENT LISTED IN THE BRITISH GOOD FOOD GUIDE IT LIES WHERE THE LAST 10 MILES OF SINGLELANE ROAD WITH BULGES FOR PASSING PETER OUT AND THE FINAL PRIVATE QUARTERMILE LEADS TO A DEAD END THE SEA WALL OF BURRASTOW HOUSE ITSELF NOT CAR THIEVES SAID THE COOWNER BO SIMMONS THE WIND WILL BLOW THEM OFF SHE WAS TELLING THE TRUTH GALES BLEW CONSTANTLY DURING MY THREEDAY STAY CAUSING FREQUENT POWER OUTAGES ONE LASTING MOST OF MY SECOND EVENING AT BURRASTOW THE WIND CLAIMED THE OIL TANKER BRAER ON JAN 5 AND BROKE IT INTO FOUR PARTS CAUSING THE LIGHTCRUDEOIL SPILL THAT THREATENED TO BE ONE OF THE WORST MARINE DISASTERS IN HISTORY AND CAPTURED THE ATTENTION OF THE WHOLE WORLD BUT THE SAME WIND CLEANED UP THE MESS IT HAD ITSELF MADE BY THE TIME I ARRIVED ON THE 19TH MOTHER NATURE HAD USED HER AWESOME POWER TO PUT HER OWN HOUSE IN ORDER THERE HAD BEEN GALES SOMETIMES HURRICANES EVERY DAY BUT ONE SINCE THE TANKER SMASHED ON THE ROCKS AT GARTHS NESS JUST TO THE WEST OF SUMBURGH HEAD THE ISLAND'S SOUTHERNMOST POINT THEY WHIPPED UP THE SEA SO VIOLENTLY THAT THE OIL SLICKS LASHED THE ROCKY COAST AND THE WATER CLEARED ITSELF THE DAY AFTER I ARRIVED MY HOST HENRY ANDERTON OWNER OF THE 750ACRE ISLAND OF VAILA VISIBLE OUT MY BEDROOM WINDOW A SHEEP AND SALMON FARMER AND PARTNER WITH HIS WIFE MS SIMMONS IN THE HOTEL WAS INVITED BY HIS PALS IN THE SHETLAND COASTGUARD TO TAKE PART IN A HELICOPTER RESCUE EXERCISE HE TOOK ME ALONG FOR THE RIDE THE COASTGUARD CREW ZIPPED ME INTO A CANARY YELLOW SURVIVAL SUIT WITH SIZE 11 BOOTS ATTACHED TO IT I WEAR SIZE 7 AND THE MAN FOR WHOM THE SUIT WAS MADE IS LESS BROAD IN THE SHOULDERS AND SHORTER IN THE TRUNK THAN I AM IT WAS NOT COMFORTABLE MOREOVER I HAD NOT UNDERSTOOD THE TERMS OF MY PASSAGE AND WAS SOMEWHAT ASTONISHED TO BE ASKED TO JUMP 15 FEET FROM THE HELICOPTER ONTO THE AIRFIELD THE CHOPPER THEN TOOK OFF AND I WAS WINCHED 50 FEET INTO THE AIR INTO IT IT SEEMS THAT I HAD VOLUNTEERED FOR RESCUE PRACTICE I GOT OFF EASY MR ANDERTON WAS LOWERED ONTO THE DECK OF A PASSING SHIP AND THEN WINCHED UP AGAIN THE SIKORSKI HELICOPTER FLEW OVER THE WRECK OF THE BRAER AND HOVERED ONLY THE SHIP'S BOW AND A BIT OF A DERRICK COULD BE SEEN THERE WAS NO OIL VISIBLE EXCEPT FOR A VERY SLIGHT SHEEN ON THE SURFACE OF THE INLET JUST BEHIND THE DOOMED VESSEL IT WAS A SUNNY DAY AND THE OCEAN WAS AZURE THE BREAKERS SNOW WHITE THE LAST TIME THE COASTGUARD CREW HAD SEEN THE WRECKAGE THERE WAS A BRIGHT RAINBOW OF OIL ON THE SEA THE ENVIRONMENT HAD PUT ITSELF RIGHT WE WERE ALL MOVED BY THE SPECTACLE DURING THE TWOHOUR FLIGHT WE CROSSED THE ENTIRE SOUTHERN HALF OF THE TREELESS ISLAND WITH ITS PEATFILLED DOMED HILLS WE SAW CLEAN BEACHES AND SEALS DOING WHAT SEALS DO OBLIVIOUS TO THE FUSS THAT THOUGH MUCH DIMINISHED IS STILL BEING MADE ABOUT THEM AND OILED OTTERS AND SEA BIRDS THE WEE SHETLAND PONIES DOTTED ALL OVER THE ISLAND WERE UNAFFECTED POLLUTION LEVELS HAVE DROPPED DRAMATICALLY IN THE PAST THREE WEEKS AND PUBLICHEALTH FEARS NOW RELATE TO THE CHEMICAL DISPERSANTS USED BY THE AUTHORITIES IN THE DAYS FOLLOWING THE CALAMITY THEY ARE STILL UNIDENTIFIED BUT THE LOCAL PAPER SAID THEY FAILED TOXICITY TESTS THEY PROBABLY WEREN'T EVEN NEEDED IN HINDSIGHT CAPT GEORGE SUTHERLAND SHETLAND ISLANDS COUNCIL DIRECTOR OF MARINE OPERATIONS SAYS RUEFULLY THAT THE FINAL OUTCOME WOULD HAVE BEEN LITTLE DIFFERENT IF THEY HAD ALL SAT BACK AND DONE NOTHING ONE BIG QUESTION REMAINS WHERE HAS THE OIL GONE LIGHT CRUDE IS KNOWN TO BE TOXIC IT SEEMS LIKELY THAT IT HAS SIMPLY DROPPED TO THE OCEAN BED MR ANDERTON AND OTHER FISH FARMERS AND FISHERMEN ARE WORRIED ABOUT THE EFFECT OF THE HYDROCARBONS ON MARINE LIFE THAT THEY HAVE BEEN INGESTED BY SEA URCHINS AND SAND EELS AND WILL GET INTO THE FOOD CHAIN VIA SUCH BOTTOMLIVING CREATURES LAST WEEK INDEED THE ZONE AROUND THE AFFECTED AREA IN WHICH FISHING IS BANNED WAS EXTENDED BY FIVE MILES SHETLANDFARMED SALMON IS THE BEST IN SCOTLAND WITH FIRMER FLESH BECAUSE THE FISH ARE GROWN AT LOWER DENSITIES AND GENERALLY PAMPERED THE NORMAL QUALITY CONTROLS ARE SO STRICT THAT THERE IS NO POSSIBILITY OF CONTAMINATION AND CONTROLS HAVE BEEN INCREASED THAT DIDN'T STOP SOME LARGE BRITISH SUPERMARKET CHAINS FROM BANNING THEIR SALE TEMPORARILY LIKE THE INDIGENOUS ANIMAL AND BIRD LIFE SHETLAND ISLANDERS ARE TOUGH MR ANDERTON WHO HAS BEEN HERE 23 YEARS WAS NOT FUSSED WHEN TAKING ME TO VAILA THE NEXT DAY IN THE OUTBOARDMOTOR LAUNCH HE USES TO TRANSPORT SHEEP THE WEATHER TURNED FOUL THE SEA WORKED ITSELF UP INTO A FRENZY AND THE ENGINE BEGAN TO SPUTTER I FELT LIKE A VIKING AND COULD SEE WHY SHETLANDERS FEEL A GREATER SYMPATHY FOR SCANDINAVIA THAN FOR PLACID ALMOST TROPICAL BRITAIN FAR AWAY LOCALS STILL SPEAK A DIALECT COMPOUNDED OF NORN A NORSE TONGUE THAT WAS THEIR LANGUAGE FOR 700 YEARS MIDDLE SCOTS AND ENGLISH IF YOU EAVESDROP IN THE STRICTLY FUNCTIONAL PUBS OF LERWICK THE MAIN TOWN WHERE HALF THE TINY POPULATION OF 22000 LIVES YOU WILL HEAR INTERJECTIONS SUCH AS HADEE TONGUE SURELY NOT WHEESHT QUIET AND WHAT DU LAEKS PLEASE YOURSELF THE FOOD IN THE PUBS AND RESTAURANTS WITH THE SINGLE EXTRAORDINARY EXCEPTION OF BURRASTOW HOUSE IS GHASTLY BUT AT HOME SHETLANDERS EAT POSTVIKING SPECIALTIES SUCH AS REESTIT MUTTON SALTED PICKLED AND DRIED LAMB SERVED COLD WITH ITS COOKING BROTH MADE INTO TATTIE POTATO SOUP AND AT THIS TIME OF YEAR THE MEALIE PUDDIN' A WHITE SAUSAGE WITH OATMEAL AND HAGGIS FOUND IN MAINLAND SCOTLAND AS WELL IRONICALLY IT IS NORTH SEA OIL THAT HAS BROUGHT PROSPERITY TO SHETLAND AND THAT EXPLAINS WHY SUMBURGH IS AN INTERNATIONAL AIRPORT BUT IN THE LONG RUN IT IS THE 32 MILLION TOURIST INDUSTRY THAT FLOATS THESE ISLANDS AND THEIR CRAFTSMEN SHIP'S CHANDLERS AND NATURE CONCERNS THE JUNEAUGUST TOURIST SEASON IS SHORT BUT THE DAYLIGHT CAN LAST 20ODD HOURS AS THEY COUNT THE TAKINGS FROM THE RECENT UPHELLYAA FESTIVAL AT LERWICK THE ISLANDERS WILL HAVE AN IDEA OF WHETHER TOURISM HAS BEEN AFFECTED BY THE BRAER DISASTER THIS POSTYULE PAGAN CELEBRATION REVIVED IN 1881 INVOLVES ELABORATE COSTUMES AND TORCHLIGHT PROCESSIONS AND CULMINATES IN THE BURNING OF A MOCKEDUP VIKING LONGBOAT PEOPLE FROM ALL OVER THE WORLD ESPECIALLY JAPAN COME TO SEE IT AND COMPLAIN THAT THE PUBS AREN'T OPEN AFTER THE JAMBOREE IT IS POSSIBLE THAT THERE WERE EVEN MORE VISITORS TO UPHELLYAA THIS YEAR THAN LAST THE SPILL WAS HORRIFIC BUT IT DID AFTER ALL PUT SHETLAND ON THE WORLD MAP SEE RELATED LETTER LETTERS TO THE EDITOR COME BACK TO SHETLAND AND EAT YOUR WORDS WSJ MARCH 1 1993 9302040139 9303010022 930111 HEALTH ATTENTIONDEFICIT DISORDER AFFECTS ADULTS BUT SOME DOCTORS QUESTION HOW WIDELY BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DO YOU OFTEN PROCRASTINATE DAYDREAM HAVE DIFFICULTY COMPLETING TASKS ARE YOU DISORGANIZED FORGETFUL AND RESTLESS IN BED AT NIGHT DOES YOUR MIND WANDER WHILE READING THIS STORY IF SO YOU MAY SUFFER FROM ATTENTIONDEFICIT DISORDER OR ADD THEN AGAIN YOU MAY BE PERFECTLY NORMAL THAT IS PART OF THE CONTROVERSY SURROUNDING A SURGE IN ADD DIAGNOSES OF ADULTS NEARLY EVERYONE HAS HEARD OF ADD IN CHILDREN YOUNGSTERS WITH IT ONCE KNOWN AS HYPERACTIVE CAN'T SIT STILL IN SCHOOL OR ELSEWHERE AND HAVE DIFFICULTY LISTENING FINISHING TASKS AND MAINTAINING FRIENDSHIPS DOCTORS HAVE USUALLY PRESCRIBED THE DRUG RITALIN FOR THESE CHILDREN AND THEN WAITED FOR THEM TO OUTGROW THE DISORDER IN THEIR TEENAGE YEARS BUT NOW MANY DOCTORS AND PSYCHOLOGISTS ARE REJECTING THE VIEW THAT CHILDREN OUTGROW ADD THESE MENTALHEALTH SPECIALISTS SAY THAT MOST JUVENILES WITH THE DISORDER NEVER RID THEMSELVES OF IT AND THAT EIGHT MILLION TO 15 MILLION AMERICAN ADULTS SUFFER FROM IT MORE ADULTS ARE LEARNING ABOUT ADD AND ARE BEING DIAGNOSED SAYS KEVIN MURPHY A PSYCHOLOGIST AT THE UNIVERSITY OF MASSACHUSETTS MEDICAL CENTER IN WORCESTER MANY GROWNUPS DIAGNOSED WITH ADD SEEM TO FUNCTION NORMALLY AND OFTEN MANAGE TO HAVE SUCCESSFUL CAREERS HEALTH PROFESSIONALS SAY THE DISORDER HAS BEEN LINKED TO CREATIVITY BECAUSE IT IS MARKED BY A LACK OF INHIBITION BUT PEOPLE WITH ADD ALSO ENCOUNTER ENORMOUS DIFFICULTIES MICHAEL PUGH WHO FAILED FIFTH GRADE AND STRUGGLED THROUGH HIGH SCHOOL DESPITE HAVING AN ABOVEAVERAGE IQ IS A SUCCESSFUL FREELANCE PHOTOGRAPHER IN MARIETTA GA AT AGE 41 BUT UNTIL HE WAS DIAGNOSED AND TREATED FOR ADD IN 1991 HE COULDN'T FOCUS ENOUGH TO READ AN ENTIRE BOOK WRITE A BUSINESS LETTER OR FILE BUSINESS CARDS IN HIS ROLODEX BEFORE BEING DISTRACTED ALL OF MY LIFE I WAS TOLD I WAS A FAILURE MR PUGH SAYS MANY ADULTS WITH ADD GET FIRED FROM JOB AFTER JOB AND CAN NEVER QUITE FIGURE OUT WHAT IS WRONG CHARLES PEARSON OF ORTONVILLE MICH COULD HARDLY HANG ONTO A JOB SUBJECTING HIS FAMILY TO INTENSE FINANCIAL AND EMOTIONAL STRAIN DURING THE FIRST 10 YEARS OF OUR MARRIAGE CHUCK PROBABLY HAD 12 JOBS SAYS HIS WIFE ZOANNA WHO WAS BAFFLED BY HIS REPEATED FAILURES BUT MR PEARSON 55 YEARS OLD WAS ACCUSTOMED TO SETBACKS HE HAD FLUNKED FOURTH GRADE FOUR TIMES THOUGH HE EVENTUALLY GRADUATED FROM A LOCAL BUSINESS COLLEGE AND GOT JOBS AS AN ACCOUNTANT MR PEARSON SAYS HE COULD BARELY MAINTAIN ANY SELFCONFIDENCE IN 1991 AFTER HIS SON WAS DIAGNOSED WITH ADD MR PEARSON ALSO WAS DIAGNOSED WITH THE CONDITION HE SAYS THE NEWS CAME AS SUCH A RELIEF THAT I SOBBED UNCONTROLLABLY DEPRESSION AND ALCOHOL AND SUBSTANCE ABUSE ARE BEING LINKED TO ADD TOO EDNA COPELAND A CLINICAL PSYCHOLOGIST AT THE SOUTHEASTERN PSYCHOLOGICAL INSTITUTE IN ATLANTA ESTIMATES THAT 50 TO 60 OF ALCOHOLICS AND DRUG ADDICTS HAVE UNDERLYING ADD PROBLEMS DR COPELAND ALSO SAYS 60 TO 70 OF THE US PRISON POPULATION HAS UNDIAGNOSED ADD BUT CLAIMS THAT ADULT ADD IS SO WIDESPREAD HAVE BECOME CONTROVERSIAL BECAUSE NEARLY EVERYONE EXPERIENCES SOME OR ALL OF THE SYMPTOMS ATTRIBUTED TO THE CONDITION FROM TIME TO TIME RUSSELL A BARKLEY A PROFESSOR OF PSYCHIATRY AND NEUROLOGY AT THE UNIVERSITY OF MASSACHUSETTS MEDICAL CENTER CAUTIONS THAT ADD CAN EASILY BE CONFUSED WITH OTHER DISORDERS SUCH AS ANXIETY AND MANIC DEPRESSION SO NEW IS OUR RECOGNITION THAT ADD CONTINUES INTO ADULTHOOD THAT THERE IS NO STANDARD WAY TO DIAGNOSE IT HE SAYS ROBERT MILLER CHIEF PSYCHIATRIST FOR THE COLORADO DEPARTMENT OF CORRECTIONS SAYS NOWHERE NEAR 50 OF AMERICA'S PRISON POPULATION HAS ADD THERE'S A TEMPTATION TO TRY TO EXPLAIN AWAY CRIMINAL BEHAVIOR WITH SOMETHING THAT SOUNDS ORGANIC OR BIOLOGICAL HE SAYS THERE'S A TRADITION OF OVERESTIMATING THINGS AS BIOLOGICAL THAT MAY BE ENVIRONMENTAL AND SOCIAL THE CONTROVERSY EXTENDS BEYOND THE MEDICAL PROFESSION TO INSURANCE COMPANIES AND EMPLOYERS MANY INSURERS CLASSIFY ADD AS A PSYCHOLOGICAL RATHER THAN NEUROLOGICAL DISORDER WHICH GENERALLY MEANS MEDICAL INSURANCE PAYS LESS OF THE COST OF DIAGNOSIS AND TREATMENT BUT THE HEALTH INSURANCE ASSOCIATION OF AMERICA SAYS COVERAGE OF ADD IS BECOMING MORE GENEROUS AS MORE EMPLOYERS ADOPT MANAGEDCARE PLANS SUCH AS HEALTHMAINTENANCE ORGANIZATIONS MEDICAL SPECIALISTS MEANWHILE SAY MANY OF THEIR PATIENTS ARE AFRAID TO DISCLOSE THEIR CONDITION TO THEIR EMPLOYERS FOR FEAR OF DISCRIMINATION THE PRESENCE OF ADD IN ADULTS ALSO HAS LEGAL IMPLICATIONS AS DEFENDANTS USE THE CONDITION AS PART OF THEIR DEFENSE IN COURT BOB PROBERT A CANADIAN CITIZEN AND PLAYER FOR THE DETROIT RED WINGS OF THE NATIONAL HOCKEY LEAGUE SUCCEEDED WITH SUCH A DEFENSE LAST YEAR AND AVOIDED DEPORTATION FROM THE US FOLLOWING HIS ARREST FOR COCAINE POSSESSION HIS ATTORNEY HAD ARGUED THAT MR PROBERT'S DRUG ABUSE STEMMED FROM ADD THE SUSPICION THAT MANY PEOPLE NEVER OUTGROW ADD FIRST SURFACED IN THE LATE '70S IT WASN'T UNTIL THE MID'80S HOWEVER THAT THE NOTION STARTED TO GAIN ACCEPTANCE NOW IN SOME CITIES ADULTS WITH ADD ARE FORMING SUPPORT GROUPS ONE GROUP IN ATLANTA HAS SWELLED TO 300 MEMBERS IN LESS THAN TWO YEARS THREE YEARS AGO THE DETROIT MEDICAL CENTER'S ADULT ATTENTION DEFICIT DISORDER CLINIC GOT FIVE OR SIX PHONE CALLS A MONTH FROM ADULTS THINKING THEY MIGHT HAVE ADD NOW IT AVERAGES 30 TO 40 CALLS A MONTH ABOUT A DOZEN NEW PATIENTS ARE EVALUATED EACH MONTH AND HALF ARE DIAGNOSED WITH THE DISORDER SAYS ANGELA TZELEPIS A PSYCHOLOGIST AT THE CLINIC TESTS FOR THE DISORDER ARE DESIGNED TO IDENTIFY EXTREME FORMS OF IMPULSIVENESS AND THE OTHER SYMPTOMS THAT CHARACTERIZE THE CONDITION PSYCHIATRISTS AND PSYCHOLOGISTS RELY ON INFORMATION ABOUT A PATIENT'S PAST INCLUDING FAMILY MEDICAL AND ACADEMIC HISTORY AND THE RESULTS OF PHYSICAL AND NEUROLOGICAL EXAMS DOCTORS BELIEVE ADD STEMS FROM A DEFICIENCY OF CERTAIN NEUROTRANSMITTERS THAT RELAY ELECTRICAL IMPULSES IN THE BRAIN THE DEFICIENCY IS SAID TO BE THE REASON PEOPLE WITH ADD ARE FORGETFUL AND NEED TO BE TOLD OVER AND OVER AGAIN TO COMPLETE A GIVEN TASK ADD IS TYPICALLY TREATED WITH THE AMPHETAMINE RITALIN PRODUCED BY CIBAGEIGY CORP THE DRUG ALSO KNOWN AS METHYLPHENIDATE STIMULATES THE PRODUCTION OF NEUROTRANSMITTERS THUS NORMALIZING BRAIN FUNCTION AND ENABLING PATIENTS TO IMPROVE THEIR CONCENTRATION IN ADDITION TO MEDICATION TREATMENT OFTEN INVOLVES BEHAVIORMANAGEMENT THERAPY WHICH AMONG OTHER THINGS AIMS TO GET PEOPLE TO THINK MORE ABOUT THEIR ACTIONS MANY SPECIALISTS BELIEVE ADD IS HEREDITARY AND CAN AFFECT SEVERAL MEMBERS OF ONE FAMILY DEBRA MAXEY OF ROANOKE VA DESCRIBES HER FAMILY AS FUNCTIONALLY DYSFUNCTIONAL SHE HER HUSBAND AND SON HAVE BEEN DIAGNOSED WITH ADD MANY ORDINARY FAMILIES MIGHT SHARE SOME OF THEIR PROBLEMS OFTEN HOUSEHOLD CHORES ARE LEFT UNDONE AND THE FAMILY EATS OUT BECAUSE MRS MAXEY FORGETS TO BUY GROCERIES BUT MOST FAMILIES AREN'T SO IMPULSIVE THAT THEY DECIDE TO CUT THE GRASS LATE AT NIGHT AS THE MAXEYS DID TO THE ANNOYANCE OF NEIGHBORS IT'S DIFFICULT TO HELP MANAGE YOUR CHILD'S CONDITION WHEN YOU HAVE THE SAME PROBLEM MRS MAXEY SAYS AS HEAD OF A SMALL COMPANY JAMES D REISINGER FACED A DIFFERENT SET OF PROBLEMS HE WOULD OFTEN FORGET ABOUT ASSIGNMENTS HE HAD GIVEN EMPLOYEES AT HIS ANN ARBOR MICH FINANCIALPLANNING FIRM WHEN THEY COMPLETED THEIR TASKS HE WOULD ASK WHY THEY HAD DONE THEM GERALDINE REISINGER SAYS HER HUSBAND NOW 49 WOULD OFTEN CALL TO SAY HE WOULD BE HOME FROM WORK IN 20 MINUTES ONLY TO ARRIVE THREE HOURS LATER HE WOULD FORGET TO PICK UP THEIR SIX CHILDREN FROM SCHOOL AND WHEN THE COUPLE WENT OUT TO DINNER MR REISINGER WOULD LEAVE THE TABLE REPEATEDLY TO MAKE PHONE CALLS HE WOULD BECOME AGITATED WHEN HIS WIFE COMPLAINED BECAUSE HE DIDN'T THINK HE HAD A PROBLEM MARRIAGE COUNSELING DIDN'T HELP ONE DAY SOME OF MR REISINGER'S EMPLOYEES GOT TOGETHER AND ASKED HIM WHAT WAS WRONG WE KNEW THERE HAD TO BE SOME SORT OF PROBLEM SAYS SCOTT WIARD A VICE PRESIDENT OF THE FIRM SOON AFTER MR REISINGER'S DAUGHTER WAS DIAGNOSED WITH ADD AND HE GOT A COPY OF A SELFADMINISTERED TEST FOR THE DISORDER AS SOON AS HE READ THE QUESTIONS HE SAYS I KNEW THAT WAS ME ONCE MR REISINGER WAS DIAGNOSED AND BEGAN TAKING RITALIN HIS WIFE RECALLS HIS ODD BEHAVIOR CEASED AND OUR LIVES TURNED AROUND WIDELY PRESCRIBED MEDICATION FOR ADD IT NORMALIZES BRAIN FUNCTIONING BY INCREASING THE PRODUCTION OF NEUROTRANSMITTERS POSSIBLE SIDE EFFECTS INCLUDE INSOMNIA HEADACHES AND IRRITABILITY PROZAC AN ANTIDEPRESSANT AND CLONIDINE AN ANTIHYPERTENSIVE AGENT THAT ACTS ON THE CENTRAL NERVOUS SYSTEM MEDICATION IT TEACHES PEOPLE TO BE MORE AWARE OF THEIR ACTIONS AND THE CONSEQUENCES OF THOSE ACTIONS IT ALSO TRIES TO ADD STRUCTURE SUCH AS MAKING DAILY LISTS OF TASKS TO BE DONE SERIOUS PROBLEMS SUCH AS THE LOSS OF SEVERAL JOBS IN A ROW SEE RELATED LETTERS LETTERS TO THE EDITOR ATTENTIONDEFICIT DISORDER MYTHOLOGY WSJ MARCH 1 1993 9301110053 9302260201 930226 LETTERS TO THE EDITOR GOD AND YOU KNOW WHAT'S RIGHT AND WRONG AS I BEGAN READING MARK MCINTIRE'S FEB 5 LETTER TO THE EDITOR CRITICIZING PATRICK J BUCHANAN'S JAN 21 EDITORIALPAGE ARTICLE THE COMING RESURRECTION OF THE GOP I EXPECTED A SOUND ANALYSIS BASED ON A LOGICAL APPLICATION OF PHILOSOPHICAL PRINCIPLES UNFORTUNATELY MR MCINTIRE'S BASIC PRESUPPOSITION IS NO MORALITY EXISTS EXCEPT THAT WHICH HAS BEEN CREATED BY HUMANITY THROUGHOUT HISTORY PHILOSOPHERS HAVE DEBATED THE QUESTIONS OF RIGHT AND WRONG IN MANY DIFFERENT WAYS AND THEIR ANALYSES HAVE BEEN BASED ON GREATLY DIFFERING PREMISES BUT FEW HAVE INTERPRETED THESE TERMS IN ACCORDANCE WITH THE NOTION OF SCIENTIFIC VERIFIABILITY JEAN JACQUES ROUSSEAU OF WHOM I HOPE MR MCINTIRE HAS READ BELIEVED THAT EACH OF US INNATELY KNOWS WHAT IS RIGHT AND WHAT IS WRONG THAT THESE ARE ABSOLUTE CONCEPTS AND THAT THE SOURCE IS FROM GOD MR MCINTIRE MAY FIND SUCH CONCLUSIONS HARD TO BELIEVE AND EVEN HARDER TO PROVE BUT MY SUGGESTION TO HIM WOULD BE TO CONSIDER THE LOGIC IN THE ANALYSIS THAT LED ROUSSEAU TO STATE THAT ONLY A FOOL WOULD BE A JUST MAN IN AN UNJUST WORLD WITHOUT GOD THERE IS NO MORALITY I BELIEVE THAT ALL PHILOSOPHICAL SYSTEMS BASED ON A SEPARATION OF GOD FROM MORALITY ARE LOGICALLY UNTENABLE AT BEST AND DANGEROUSLY DELUSIONARY AT WORST MR MCINTIRE ATTACKS MR BUCHANAN FOR BELIEVING THAT MORALS HAVE CONSEQUENCES MR MCINTIRE WRITES MATTERS OF MORALITY ARE NOT LIKE THESE AND OTHER MATTERS OF PROVABLE FACT EG BUILDING BRIDGES COOKING PIZZAS LAUNCHING ROCKETS TO MARS THEREFORE TO EQUATE MATTERS OF PROVABLE FACT WITH MATTERS OF LIFESTYLE MORALITY IS A BLATANT VIOLATION OF THE RULES OF LOGIC AND REASON AS ANY FIRSTYEAR PHILOSOPHY STUDENT COULD TESTIFY HE APPARENTLY THINKS THERE IS NO WAY TO LINK BEHAVIORAL CONDUCT TO MORAL BELIEFS OR THE LACK OF THEM JOURNAL EDITOR ROBERT L BARTLEY'S FEB 10 EDITORIALPAGE COLUMN A TRAVELER'S VIEW OF MORALITY AMERICAN DECLINE DIFFERS MARKEDLY FROM MR MCINTIRE'S MR BARTLEY WRITES IF AMERICA IS TO DECLINE IT WILL NOT BE BECAUSE OF MILITARY OVERSTRETCH IF A DECLINE IS UNDER WAY IT'S A MORAL ONE MR BARTLEY IS ON TARGET MR MCINTIRE MISSES BY MILES HAS THE PROFESSOR BEEN PAYING ANY ATTENTION TO THE SKYROCKETING ILLEGITIMATE BIRTHRATES TO THE 16 MILLION ANNUAL ABORTIONS TO VIOLENCE IN THE CLASSROOMS TO DR DEATH KEVORKIAN RUNNING AMOK IN OUR DETROIT SUBURBS TO THE APRIL LOS ANGELES RIOTS TO THE AIDS EPIDEMIC INDUCED BY BEHAVIORALLY RISKY LIFESTYLES TO NAME JUST A FEW PERHAPS YOU CAN ESCAPE THE REAL WORLD IN THE IVORY TOWERS OF A PHILOSOPHY CLASSROOM BUT WHERE THE AVERAGE AMERICAN IS LIVING HIS DAILY LIFE THE FACTS SPEAK FOR THEMSELVES 9302260200 930226 BUSINESS BRIEF COOPERS & LYBRAND'S QUEBEC BRANCH IS SUED BY EUROPEAN BANKS MONTREAL A GROUP OF 16 BANKS HAS SUED 20 PARTNERS IN THE QUEBEC BRANCH OF COOPERS & LYBRAND FOR 127 MILLION CANADIAN DOLLARS US1009 MILLION CHARGING THEY FAILED TO REPORT IRREGULAR PRACTICES BY CASTOR HOLDINGS LTD A BANKRUPT REALESTATE INVESTMENT CONCERN IN A SUIT FILED THIS WEEK IN QUEBEC'S SUPERIOR COURT HERE THE BANKS MOSTLY EUROPEAN CHARGE THAT AUDITED FINANCIAL STATEMENTS PREPARED FOR CASTOR BY THE FIRM OF LALIBERTE LANCTOT COOPERS & LYBRAND GROSSLY MISSTATED THE REAL FINANCIAL CONDITION OF THE COMPANY AND CONCEALED THE TRUE PICTURE AS A RESULT THE SUIT CLAIMS IMPRUDENT LOANS WERE MADE TO CASTOR AND ITS SUBSIDIARIES AND WERE NEVER REPAID A COOPERS & LYBRAND SPOKESMAN IN NEW YORK SAID THE SUIT IS WITHOUT MERIT AND WILL BE VIGOROUSLY CONTESTED HE CALLED IT ANOTHER IN A SERIES OF LAWSUITS AGAINST ACCOUNTING FIRMS BY INVESTORS AND LENDERS WHO HAVE LOST THEIR MONEY AND ARE SEEKING MONEY FROM THE ONLY AVAILABLE SOURCEACCOUNTING FIRMS THE SUIT CHARGES THAT COOPERS FAILED TO DISCLOSE AMONG OTHER THINGS THE EXTENT OF RELATED PARTY TRANSACTIONS BY CASTOR COOPERS SERVED AS CASTOR'S AUDITOR FROM THE COMPANY'S INCORPORATION IN 1977 AND PROVIDED VARIOUS CONSULTING SERVICES ACCORDING TO THE SUIT THE SUIT'S LARGEST CLAIMS ARE BY GERMAN BANKS BERLINER HANDELS UND FRANKFURTER BANK BAYERISCHE LANDESBANK GIROZENTRALE DEUTSCHE GENOSSENSCHAFTSBANK SAL OPPENHEIM JR & CIE KGAA AND ARAB BANKING CORP DAUS & CO GMBH CASTOR'S BUSINESS INVOLVED GATHERING MONEY FROM BANKS AND OTHER INVESTORS AND THEN MAKING LOANS TO PROPERTY DEVELOPERS IN CANADA AND THE US OFTEN IN THE FORM OF SECOND AND THIRD MORTGAGES THE COMPANY HEADED BY EUROPEAN FINANCIER WOLFGANG STOLZENBERG WAS FORCED INTO BANKRUPTY BY CREDITORS LAST YEAR WITH DEBTS OF C138 BILLION 9302260199 930201 THE COMING CONSERVATIVE CENTURY' BY IRVING KRISTOL THE BEGINNING OF POLITICAL WISDOM IN THE 1990S IS THE RECOGNITION THAT LIBERALISM TODAY IS AT THE END OF ITS INTELLECTUAL TETHER THE FACT THAT IT CAN WIN ELECTIONS IS IRRELEVANT CONSERVATIVES CONTINUED TO WIN ELECTIONS DURING THE LIBERAL CENTURY 18701970 BUT ONCE IN OFFICE THEY REVEALED THEMSELVES TO BE IMPOTENT TO ENACT A SUSTAINED CONSERVATIVE AGENDA THE TIDE OF PUBLIC OPINION WAS TOO STRONG AGAINST THEM THAT TIDE HAS NOW TURNED IT IS LIBERAL ADMINISTRATIONS TODAY IN ALL THE WESTERN DEMOCRACIES THAT FIND THEMSELVES RELATIVELY IMPOTENT WHEN IN OFFICE JUST AS CONSERVATIVE ADMINISTRATIONS USED TO NIBBLE AWAY AT LIBERAL REFORMS PREVIOUSLY ENACTED SO LIBERALS IN OFFICE TODAY DO THEIR SHARE OF NIBBLING AT THE OCCASIONAL CONSERVATIVE REFORM THAT HAS TAKEN ROOT MORE OFTEN THEY FIND THEMSELVES NIBBLING AWAY AT THE LIBERAL REFORMS OF THEIR PREDECESSORS REFORMS THAT THREATEN FISCAL INSOLVENCY AS WELL AS POLITICAL FRAGMENTATION THE LIBERAL CONSENSUS AS EXPRESSED IN THE MEDIA IS THAT WITH THE ELECTION OF BILL CLINTON CONSERVATISM IN AMERICA IS IN DISARRAY IS GROPING FOR SOME CENTER OF EQUILIBRIUM AND THAT ONLY A MODERATE REPUBLICAN COALITION ONE THAT DISENGAGES ITSELF FROM THE RELIGIOUS RIGHT CAN CREATE AN AMERICAN MAJORITY THIS MAY BE TRUE IN THE SHORTER TERM AS DEFINED BY THE NEXT PRESIDENTIAL ELECTION OR TWO BUT IN THE LONGER TERM THAT CONSENSUS IS FALSE THE RELIGIOUS CONSERVATIVES ARE ALREADY TOO NUMEROUS TO BE SHUNTED ASIDE AND THEIR NUMBERS ARE GROWING AS IS THEIR INFLUENCE THEY ARE GOING TO BE THE VERY CORE OF AN EMERGING AMERICAN CONSERVATISM FOR THE PAST CENTURY THE RISE OF LIBERALISM HAS BEEN WEDDED TO THE RISE OF SECULARISM IN ALL AREAS OF AMERICAN LIFE IN THE DECADES AHEAD THE DECLINE OF SECULARISM WILL SIGNIFY THE DECLINE OF LIBERALISM AS WELL ALREADY ON THE FARLEFT FRINGES OF LIBERALISM ITSELF ARTISTS AND PHILOSOPHERS ARE WELCOMING THE COLLAPSE OF A SECULAR HUMANISM THAT THEY FIND STERILE AND OPPRESSIVE THEY CAN OFFER NOTHING WITH WHICH TO REPLACE THIS LIBERALSECULAR HUMANISM BUT OTHERS CAN AND WILL TODAY IT IS THE RELIGIOUS WHO HAVE A SENSE THAT THE TIDE HAS TURNED AND THAT THE WAVE OF THE FUTURE IS MOVING IN THEIR DIRECTION THE THREE PILLARS OF MODERN CONSERVATISM ARE RELIGION NATIONALISM AND ECONOMIC GROWTH OF THESE RELIGION IS EASILY THE MOST IMPORTANT BECAUSE IT IS THE ONLY POWER THAT IN THE LONGER TERM CAN SHAPE PEOPLE'S CHARACTERS AND REGULATE THEIR MOTIVATION IN ECONOMICS SECULAR INCENTIVES IE MATERIALIST INCENTIVES CAN BE EFFECTIVE BUT IN THE REALLY TROUBLED AREAS OF MODERN LIFE WHERE SOCIAL POLICY IS AT WORK THE WELFARE STATE HAS GIVEN BIRTH TO A LONG TRAIN OF CALAMITIES PERVERSE ECONOMIC INCENTIVES CAN ENCOURAGE A CORRUPTING DEPENDENCY AND LIBERALISM HAS IN THE NAME OF COMPASSION CREATED A NETWORK OF SUCH PERVERSE INCENTIVES BUT IT DOES NOT FOLLOW THAT MODIFYING SUCH INCENTIVES WILL HAVE A DRAMATIC EFFECT THE REASON IS SIMPLE IT IS NOT POSSIBLE TO MOTIVATE PEOPLE TO DO THE RIGHT THING AND AVOID DOING THE WRONG THING UNLESS PEOPLE ARE TOLD FROM CHILDHOOD ON WHAT THE RIGHT THINGS AND THE WRONG THINGS ARE THIS EXPLAINS WHY SO MANY OF OUR NEWER IMMIGRANTS FROM TRADITIONAL FAMILIES IGNORE THESE TEMPTING CORRUPTING INCENTIVES AND INSTEAD MOVE ON TO PRODUCTIVE LAWABIDING LIVES EVEN THEN SOME DO NOT PAY HEED BUT MOST DO MOST OF THE TIME THE MOST EXTRAORDINARY SOCIAL PHENOMENON OF THE LIBERAL CENTURY HAS BEEN THE TOTALLY UNEXPECTED INCREASE IN CRIMINALITY THE FIRST OBLIGATION OF GOVERNMENT ALWAYS HAS BEEN TO ENSURE THE SECURITY OF THE PERSON LIBERALISM DOES NOT BELIEVE THIS IT REPRESENTS TOO PUNITIVE A CONCEPTION OF THE GOVERNMENTAL MISSION INSTEAD LIBERALISM BELIEVES THAT IF YOU DIMINISH INCOME INEQUALITIES AND PROVIDE CRADLETOBIRTH INCOME SECURITY AND AMPLE PROVISION OF MEDICAL CARE THEN THE CRIMINAL IMPULSE WILL WITHER AWAY IN THE FACE OF INCREASING CRIMINALITY THEREFORE LIBERALISM RESPONDS WITH EVER MORE FANCIFUL AND EVER MORE DESPERATE THERAPEUTIC PROGRAMS ALL OF WHICH ARE INEFFECTUAL AS WITH CRIME SO WITH ALL THE OTHER SOCIAL PATHOLOGIES THAT NOW INFEST OUR LIBERAL SOCIETY AND ITS WELFARE STATE THE JOY OF SEX HAS BEEN COMPROMISED BY AN INFUSION OF SEXUAL ANXIETY AS VENEREAL DISEASES RANGING FROM THE FATAL TO THE NOXIOUS PROLIFERATE IT HAS ALSO PRODUCED A LARGE AND GROWING POPULATION OF UNWED MOTHERS AND THEIR BABIES THE LIBERAL ANSWER TO THIS HUMAN DISASTER IS EITHER TO DENY THAT IT IS ANY KIND OF DISASTER JUST A NEW KIND OF FAMILY THE SOCIAL WORKERS CHIRP OR TO CREATE MORE PROGRAMS OF SEX EDUCATION BUT IT IS SUCH SECULAR NONJUDGMENTAL EDUCATION AN EDUCATION BEREFT OF MORAL GUIDANCE THAT HAS HELPED CREATE THIS PROBLEM IN THE FIRST PLACE BACK IN 1897 JOHN DEWEY DEFINED THE ESSENCE OF THE LIBERAL CREDO THE PRACTICAL PROBLEM OF MODERN SOCIETY IS THE MAINTENANCE OF THE SPIRITUAL VALUES OF CIVILIZATION THROUGH THE MEDIUM OF THE INSIGHT AND DECISION OF THE INDIVIDUAL A NOBLE IDEA BUT ULTIMATELY A SELFCONTRADICTORY ONE YOU DO NOT PRESERVE SPIRITUAL VALUES BY TURNING THEM OVER TO A RAMPANT SPIRITUAL INDIVIDUALISM THAT EXPERIMENT HAS BEEN TRIED AND IT HAS FAILED THOUGH ANY ADMISSION OF FAILURE IS NOT SOMETHING WE CAN EXPECT ON THE CONTRARY WHAT WE ARE WITNESSING AND LIVING THROUGH IS A PROLONGED SPASM OF LIBERAL FANATICISM A REDOUBLING OF LIBERAL EFFORT AS LIBERAL PROGRAM AFTER LIBERAL PROGRAM FAILS WITH EACH FAILURE THE CREDIBILITY OF GOVERNMENT IS DIMINISHED AND CYNICISM ABOUT POLITICS INCREASES DOES ANYONE REALLY BELIEVE THAT THE CLINTON ADMINISTRATION WILL SIGNIFICANTLY REDUCE OR THAT A BUSH ADMINISTRATION WOULD HAVE SIGNIFICANTLY REDUCED THE BUDGET DEFICIT THE PLAIN TRUTH IS THAT IF WE ARE EVER GOING TO COPE WITH THE DEFICIT AND THE SOCIAL PROGRAMS THAT INFLATE IT WE ARE GOING TO HAVE TO BEGIN WITH A VERY DIFFERENT VIEW OF HUMAN NATURE AND HUMAN RESPONSIBILITY IN RELATION TO SUCH ISSUES AS CRIMINALITY SEXUALITY WELFARE DEPENDENCY EVEN MEDICAL INSURANCE ONLY TO THE DEGREE THAT SUCH A NEW ACTUALLY VERY OLD WAY OF LOOKING AT OURSELVES AND OUR FELLOW CITIZENS EMERGES CAN A PUBLIC OPINION BE SHAPED THAT WILL CANDIDLY CONFRONT THE FISCAL CRISIS OF THE WELFARE STATE PRESIDENTIAL CALLS FOR SACRIFICE MEANING A WILLINGNESS TO PAY HIGHER TAXES ARE A LIBERAL COPOUT WHY DON'T WE HEAR SOMETHING ABOUT SELFCONTROL AND SELFRELIANCE IT'S THE TRADITIONAL SPIRITUAL VALUES THAT WE AS INDIVIDUALS NEED NOT NEWLY INVENTED TRENDY ONES WE HEAR IT SAID CONSTANTLY AND WITH PSEUDOSOLEMNITY THAT THIS FISCAL CRISIS RESULTS FROM THE PEOPLE DEMANDING BENEFITS THAT THEY ARE THEN UNWILLING TO PAY FOR WERE THIS SO THE INFERENCE WOULD BE THAT SUCH A CORRUPT PEOPLE ARE INCAPABLE OF DEMOCRATIC SELFGOVERNMENT AND ARE IN NEED OF AN ELITE TO DO THE JOB FOR THEM LIBERALS DESPITE THEIR POPULIST RHETORIC HAVE BEEN DISCREETLY DRAWING THIS INFERENCE FOR MANY YEARS NOW MUCH OF OUR OVERBLOWN WELFARE STATE WAS CREATED BY LIBERAL POLITICAL ENTREPRENEURS NOT IN RESPONSE TO AN EVIDENT POPULAR DEMAND LIBERALS MAY SCORNFULLY DISMISS SUPPLYSIDE ECONOMICS BUT THEY ARE PROFOUNDLY COMMITTED TO SUPPLYSIDE POLITICS THE POLITICS OF UNMET NEEDS A CATEGORY THAT IS CONSTANTLY EXPANDING ALSO EXPANDING OF COURSE ARE THE OFFICIAL BUREAUCRACIES AND THOSE HELPING PROFESSIONS THAT COPE WITH THOSE NEEDS TO COUNTER THE CRISIS THAT LIBERALISM IS PROVOKING IN OUR SOCIETY CONSERVATISM HAS TO REDISCOVER AND REAFFIRM ITS ATTACHMENT TO ITS THREE TRADITIONAL PILLARS A REAFFIRMATION OF THE GOAL OF ECONOMIC GROWTH SHOULD NOT BE DIFFICULT IT IS BECOMING EVEN MORE WIDELY APPRECIATED THAT ECONOMIC GROWTH IS CRUCIALLY DEPENDENT ON THE ABILITY OF ECONOMIC ACTIVISTS TO INVEST AND INNOVATE JUST AS POLITICAL ACTIVISTS SPURRED BY POLITICAL AMBITION ARE AT THE HEART OF LIBERAL PUBLIC POLICY SO ECONOMIC ACTIVISTS SPURRED BY ECONOMIC AMBITION ARE AT THE HEART OF CONSERVATIVE ECONOMIC POLICY IT IS THEY WHO PROMOTE THE GROWTH THAT PACIFIES EGALITARIAN AND REDISTRIBUTIONAL APPETITES THERE IS STILL AN INFLUENTIAL SEGMENT OF OLD CONSERVATIVES WHO DO NOT UNDERSTAND THAT A PROENTREPRENEURIAL EMPHASIS IN ECONOMIC POLICY IS NOT SIMPLY A PROBUSINESS POLICY BUT THEY ARE GRADUALLY FADING AWAY SIMILARLY AN AFFIRMATION OF THE NATIONAL SPIRIT IS PRACTICALLY INEVITABLE AS THE LIBERAL INTERNATIONALISM THAT HAS DEFINED AMERICAN FOREIGN POLICY SINCE THE DAYS OF WOODROW WILSON CONTINUES TO UNRAVEL THE US WILL SURELY WANT TO AND WILL NEED TO REMAIN AN ACTIVE WORLD POWER BUT THIS ACTIVITY WILL NOT BE WITHIN THE CONFINES PRESCRIBED BY THE UNITED NATIONS OR NATO OR WHATEVER IN THIS POSTCOLD WAR ERA THOSE ORGANIZATIONS ARE ON THEIR WAY TO BECOMING MORIBUND NOR ARE WE ABOUT TO ENGAGE IN SOME KIND OF BENIGN HUMANITARIAN IMPERIALISM EXCEPT IN VERY SPECIAL CIRCUMSTANCES DECIDED CASE BY CASE A RENASCENT NATIONALISM WILL BE ACCOMPANIED BY A RENASCENT NEOREALISM IN FOREIGN POLICY THIS IS SOMETHING THAT MOST CONSERVATIVES HAVE LONG WISHED FOR COPING WITH A RELIGIOUS REVIVAL HOWEVER IS SOMETHING THAT CONSERVATIVES AND THE REPUBLICAN PARTY ARE NOT YET PREPARED TO DO RELIGIOUS PEOPLE ALWAYS CREATE PROBLEMS SINCE THEIR ARDOR TENDS TO OUTRUN THE LIMITS OF POLITICS IN A CONSTITUTIONAL DEMOCRACY BUT IF THE REPUBLICAN PARTY IS TO SURVIVE IT MUST WORK AT ACCOMMODATING THESE PEOPLE IN A SENSE THE INFLUX OF THE RELIGIOUS INTO AMERICAN POLITICS IS ANALOGOUS TO THE INFLUX OF EUROPEAN IMMIGRANTS INTO OUR URBAN CENTERS BETWEEN 1870 AND 1914 THEY CREATED MANY PROBLEMS BUT THE DEMOCRATS WELCOMED THEM WHILE THE REPUBLICANS SHUNNED THEM THAT WAS THE ORIGIN OF THE NATURAL DEMOCRATIC MAJORITY THE DEMOCRATS ARE NEVER GOING TO BE ABLE TO WELCOME THE RELIGIOUS BUT IF THE REPUBLICANS KEEP THEM AT ARM'S LENGTH INSTEAD OF EMBRACING THEM AND SHAPING THEIR POLITICAL THINKING A THIRD PARTY AND A RESTRUCTURING OF AMERICAN POLITICS ARE CERTAIN ONE WAY OR ANOTHER IN THE DECADES AHEAD THEY WILL NOT BE DENIED MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST SEE RELATED LETTERS LETTERS TO THE EDITOR DON'T GIVE ME THAT OLDTIME RELIGION WSJ FEB 26 1993 9302010183 9302260198 930226 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 283104 METRIC TONS IN THE WEEK ENDED SATURDAY UP 22 FROM 277021 TONS IN THE PRECEDING WEEK AND UP 14 FROM 248892 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 WAS 1948511 TONS UP 6 FROM 1838036 A YEAR AGO 9302260197 930226 WHO'S NEWS G&K SERVICES INC G&K SERVICES INC MINNEAPOLIS WILLIAM HOPE 59 YEARS OLD VICE PRESIDENT AND A DIRECTOR OF THIS UNIFORMS SUPPLIER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING RICHARD FINK WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9302260196 930226 WHO'S NEWS XTRA CORP XTRA CORP BOSTON CONRAD E PYTEL 52 YEARS OLD RESIGNED AS PRESIDENT OF THE TRAILER LEASING CONCERN'S LEASE DIVISION TO PURSUE OTHER INTERESTS WILLIAM FRANZ 42 FORMERLY REGIONAL VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT OF THE DIVISION MR PYTEL COULDN'T BE REACHED FOR COMMENT 9302260195 930226 WHO'S NEWS AQUANAUTICS CORP AQUANAUTICS CORP ALAMEDA CALIF SHARON CASTLE 39 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS OXYGEN PRODUCTS COMPANY MS CASTLE WHO WAS THE COMPANY'S CHIEF FINANCIAL OFFICER AND AN EXECUTIVE VICE PRESIDENT SAID SHE FILLED POSITIONS THAT HAD BEEN VACANT FOR SEVERAL YEARS 9302260194 930226 INTERNATIONAL DUTCH ECONOMIC GROWTH SLOWS AMSTERDAM THE EXPANSION OF THE DUTCH ECONOMY SLOWED TO 15 IN 1992 FROM 22 A YEAR EARLIER THE CENTRAL BUREAU FOR STATISTICS SAID GROSS DOMESTIC PRODUCT HAS BEEN DECLINING SINCE 1989 WHEN GROWTH PEAKED AT 47 IT SLOWED TO 39 IN 1990 THE SLACKENING GROWTH IS STILL BETTER THAN THAT IN MOST EUROPEAN COUNTRIES WHERE THERE IS STAGNATION OR EVEN RECESSION FOR THE FINAL QUARTER OF LAST YEAR DUTCH GDP ROSE 09 HALVED FROM THE 18 RATE OF INCREASE FOR THE 1991 FOURTH QUARTER THE GROWTH DATA ARE PRELIMINARY AND NOT SEASONALLY ADJUSTED 9302260193 930226 YOU MAY HAVE HER TO THANK FOR IT WHEN THE BOSS BURSTS INTO FLAMES BY LA WINOKUR SPECIAL TO THE WALL STREET JOURNAL THE OFFICE YOU SAY IS GETTING YOU DOWN YOUR JOB APPEARS VULNERABLE COLLEAGUES TALK BEHIND YOUR BACK YOUR PET PROJECTS GET LOST NOT TO WORRY ZSUZSANNA BUDAPEST CAN WORK SOME MAGIC PERHAPS MS BUDAPEST A SELFDESCRIBED FEMINIST WITCH IN SAN FRANCISCO HAS WRITTEN A HANDBOOK FOR WOMEN SUFFERING FROM A HOST OF WORKPLACE MALADIES TO CURE OFFICE ILLS SHE COUNSELS TRYING SOME HARMONIZING AND PURIFYING VIBRATIONS SOAK A SPRIG OF LEMON VERBENA OR THE DRIED VARIETY IN A DISH OF SPRING WATER OR SALTED WATER IF YOU MUST WITH A HAND OVER THE WATER SAY WATER WASH CLEAN WASH AWAY THE DISCORD FROM MY OFFICE LET EVERYTHING THAT HASN'T BEEN WORKING NOW START UP AGAIN THEN ARRIVE EARLY ONE MORNING AND SCATTER THE BLESSED WATER AROUND THE OFFICE THAT'S NOT ALL THOUGH SHE SUGGESTS WEARING SANDALWOOD OIL AS PERFUME AND BURNING A LITTLE SANDALWOOD OR SAGE INCENSE YOUR TROUBLES SHE CLAIMS WILL EVAPORATE WITH THE WATER AND DISSIPATE WITH THE SMOKE SO YOU WANT TO PROTECT YOUR JOB HERE'S HER ADVICE BAKE MUFFINS FLAVORED WITH LEMON OR LIME AND PUT A SPELL ON THEM IF THE PROBLEM IS A HARASSING ASSOCIATE THERE'S ALWAYS A SPECIAL HOTFOOT POWDER AND SPELL DESIGNED TO SEND THAT PERSON RUNNING IF ALL ELSE FAILS THERE'S TOUGHER HEXING SHE RECOMMENDS IN HER SOONTOBEPUBLISHED HANDBOOK THE GODDESS IN THE OFFICE A PERSONAL ENERGY GUIDE FOR THE SPIRITUAL WARRIOR AT WORK THE HUNGARIANBORN MS BUDAPEST DECIDED TO HELP THE COVEN OF WORKING WOMEN AFTER WATCHING THE HILLTHOMAS HEARINGS IN 1991 I COULDN'T HELP BUT THINK WHAT IF ANITA HILL COULD DO A LITTLE SPELL AND SEND HIM PACKING SHE SAYS MS BUDAPEST CONCEDES THAT HER MAGIC WOULD WORK FOR MEN TOO BUT STRESSES THAT HER BOOK IS AIMED AT HELPING WOMEN OF MS BUDAPEST'S SUGGESTED SORCERY IF YOU'RE WILLING TO TRY IT YOU MAY BE SURPRISED TO FIND IT WORKS SAYS LAUREL OLSON A CUSTOMERSERVICE REPRESENTATIVE FOR AN EQUIPMENTSERVICING COMPANY IN NORTHERN CALIFORNIA MS OLSON CONTENDS THAT AT A PREVIOUS JOB SHE RID HERSELF OF A BOTHERSOME COWORKER BY DRAWING A PICTURE OF THE PERSON ON A PAPER BOAT FILLED WITH CHOCOLATE COINS BLESSING IT AND CHANTING I WISH YOU WELL THE COLLEAGUE ALMOST IMMEDIATELY TOOK ANOTHER JOB ON THE EAST COAST 9302260192 930226 WHO'S NEWS ADAMS RESOURCES & ENERGY INC ADAMS RESOURCES & ENERGY INC HOUSTON FRANK T WEBSTER WAS NAMED TO THE BOARD OF THIS DIVERSIFIED ENERGY COMPANY FILLING THE UNEXPIRED TERM OF KENNETH JOHNSON WHO RETIRED FOR HEALTH REASONS MR WEBSTER 44 YEARS OLD IS A FINANCIAL AND ENERGY CONSULTANT 9302260191 930226 TRIZEC CORP PLANS TO SELL REST OF STAKE IN ROUSE CO OF US CALGARY ALBERTA TRIZEC CORP SAID IT PLANS THIS YEAR TO SELL ITS REMAINING STAKE IN ROUSE CO CONSISTING OF 15 MILLION ROUSE SHARES AND 85 MILLION US OF CONVERTIBLE DEBENTURES IN SEPTEMBER TRIZEC A REAL ESTATE CONCERN SOLD 95 MILLION ROUSE SHARES REPRESENTING 20 OF THE TOTAL OUTSTANDING TO INVESTORS FOR 12 A SHARE OR A TOTAL OF 114 MILLION ROUSE ITSELF BOUGHT ONE MILLION OF THE SHARES THE REST WERE SOLD TO SEVEN INSTITUTIONAL INVESTORS AT THE TIME TRIZEC SAID IT AGREED NOT TO SELL THE REST OF ITS ROUSE SHARES FOR SIX MONTHS AT LESS THAN 14 A SHARE ROUSE IS A REAL ESTATE DEVELOPER IN COLUMBIA MD TRIZEC HURT BY A DOWNTURN IN REAL ESTATE MARKETS SAID IT ALSO PLANS OTHER ASSET SALES TO IMPROVE ITS CASH FLOW THE COMPANY SAID IT CURRENTLY IS NEGOTIATING TO SELL UP TO A 50 EQUITY STAKE IN ITS RETIREMENT AND NURSING HOME BUSINESS AND EXPECTS TO COMPLETE THE TRANSACTION THIS YEAR THE BUSINESS KNOWN AS CENTRAL PARK LODGES HAD REVENUE OF 2628 MILLION CANADIAN DOLLARS US2087 MILLION IN THE YEAR ENDED OCT 31 TRIZEC'S PLANS TO SELL ASSETS WERE DISCLOSED IN THE COMPANY'S LATEST ANNUAL REPORT TRIZEC OFFICIALS WEREN'T AVAILABLE FOR ADDITIONAL COMMENT 9302260190 930226 TECHNOLOGY & MEDICINE STUDY OF MULTIPLE SCLEROSIS DRUG SHOWS ENCOURAGING RESULTS FOR CERTAIN PATIENTS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON A PRELIMINARY STUDY OF A NOVEL ORAL DRUG FOR MULTIPLE SCLEROSIS SHOWED ENCOURAGING BUT INCONCLUSIVE RESULTS IN PATIENTS WITH THE DEGENERATIVE NERVE DISEASE ACCORDING TO A REPORT BY SCIENTISTS HERE MULTIPLE SCLEROSIS WHICH OFTEN CAUSES GRADUAL LOSS OF MOTOR FUNCTIONS AND OCCASIONALLY EARLY DEATH IS AN AUTOIMMUNE DISEASE AFFECTING ABOUT 300000 AMERICANS THE YEARLONG TEST BY RESEARCHERS AT BRIGHAM AND WOMEN'S HOSPITAL INVOLVED ONLY 30 PATIENTS AND PARTLY BECAUSE OF ITS SMALL SIZE DIDN'T SHOW STATISTICALLY SIGNIFICANT BENEFITS FROM THE DRUG BUT ONE SUBSET OF PATIENTS MALES LACKING A TYPE OF GENE THAT IS OFTEN PRESENT IN PEOPLE WITH MULTIPLE SCLEROSIS DID SHOW SIGNS OF IMPROVEMENT MOREOVER THE DRUG HAD NO SIDE EFFECTS AUTOIMMUNE INC A LEXINGTON MASS CONCERN OWNS RIGHTS TO THE DRUG THE RESULTS RAISED HOPES ABOUT THE GENERAL APPROACH OF USING ORAL DRUGS TO INDUCE IMMUNE TOLERANCE TO ONE'S OWN TISSUES IN MULTIPLE SCLEROSIS AND OTHER AUTOIMMUNE DISEASES AUTOIMMUNE DISEASES WHICH ALSO INCLUDE RHEUMATOID ARTHRITIS AND EARLYONSET DIABETES RESULT FROM A MISGUIDED ATTACK BY IMMUNE CELLS ON ONE'S OWN TISSUES THERE ARE NO CURES EXISTING PALLIATIVES FOR SUCH DISEASES CAN HAVE SEVERE SIDE EFFECTS AND OFTEN LOSE THEIR EFFECTIVENESS OVER TIME WE HAVEN'T ESTABLISHED THAT THE DRUG WORKS SAID HOWARD WEINER COAUTHOR OF A REPORT ON THE STUDY WHICH APPEARS IN TODAY'S ISSUE OF THE JOURNAL SCIENCE BUT OBVIOUSLY WE'RE ENCOURAGED THERE WAS A TREND IN THE RIGHT DIRECTION IN CERTAIN PATIENTS WHO TOOK THE DRUG ADDED STEPHEN REINGOLD VICE PRESIDENT OF RESEARCH AND MEDICAL PROGRAMS AT THE NATIONAL MULTIPLE SCLEROSIS SOCIETY ALTHOUGH THE STUDY ON THE DRUG DIDN'T SHOW EFFICACY IT WAS PROVOCATIVE AND DESERVES FURTHER STUDY HE SAID SCIENTISTS HAVE KNOWN FOR YEARS THAT AUTOIMMUNE DISEASES IN ANIMALS SOMETIMES CAN BE ALLEVIATED BY FEEDING THEM THE PROTEINS THAT ARE TARGETED BY THEIR MISGUIDED IMMUNE CELLS THE METHOD APPEARS TO WORK BECAUSE OF AN INTERNAL MECHANISM THAT PREVENTS IMMUNE CELLS FROM TREATING FOOD MOLECULES AS IF THEY WERE DANGEROUS FOREIGN MATERIALS DESERVING TO BE ATTACKED THE MECHANISM MAY INDUCE IMMUNE CELLS TO RELEASE CHEMICALS THAT SWITCH OFF ATTACKS ON SUCH MOLECULES WHEREVER THE IMMUNE CELLS ENCOUNTER THEM IN THE BODY THUS FOOD MOLECULES THAT RESEMBLE TISSUE PROTEINS TARGETED IN AUTOIMMUNE DISEASE MAY INDUCE THIS TOLERANCE EFFECT AND ALLEVIATE DISEASE SYMPTOMS THE PROCESS MAY BE AIDED BY DIGESTIVE BREAKDOWN OF THE FOOD MOLECULES INTO PARTS MORE CLOSELY RESEMBLING THE IMMUNE TARGETS DR WEINER SAID IN MULTIPLE SCLEROSIS THE IMMUNE TARGET IS A PROTEIN SURROUNDING MANY NERVE CELLS LIKE INSULATION ON ELECTRICAL WIRES THE BOSTON SCIENTISTS' DRUG IS A COWTISSUE EXTRACT SIMILAR TO THIS MYELIN SHEATH PROTEIN IN THE STUDY SIX OF 15 PATIENTS HAD MAJOR AUTOIMMUNE ATTACKS WHILE TAKING THE DRUG COMPARED WITH 12 OF 15 TAKING A PLACEBO SIX OF THE PATIENTS TAKING THE DRUG IMPROVED DURING THE YEAR COMPARED WITH TWO ON THE PLACEBO FIVE OF THOSE WHO IMPROVED ON THE DRUG WERE MEN AND MOST OF THEM LACKED THE SOCALLED HLADR2 GENE VARIANT OFTEN ASSOCIATED WITH MULTIPLE SCLEROSIS THE RESULTS GIVE A STRONG INDICATION THAT THE ORALTOLERANCE TECHNIQUE WILL WORK SAID ROBERT BISHOP PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AUTOIMMUNE INC THE COMPANY PLANS SOON TO SPONSOR A LARGER CLINICAL TRIAL OF THE APPROACH BY DR WEINER AND COLLEAGUES INVOLVING 200 MULTIPLE SCLEROSIS PATIENTS HE ADDED AUTOIMMUNE ALSO IS SPONSORING PRELIMINARY TESTS OF SIMILAR ORAL DRUGS FOR RHEUMATOID ARTHRITIS AND AN INFLAMMATORY EYE DISEASE CALLED UVEITIS MR BISHOP SAID IN ADDITION THE COMPANY IS PLANNING TO TEST A GENETICALLY ENGINEERED HUMAN VERSION OF MYELIN SHEATH PROTEIN IN HOPES OF ACHIEVING BETTER RESULTS IN MULTIPLE SCLEROSIS PATIENTS THAN WITH THE BOVINE VERSION 9302260189 930226 WHO'S NEWS TSS LTD TSS LTD PROVIDENCE RI WILLIAM PENWELL 60 YEARS OLD AND FORMER CHAIRMAN OF SPERRY & HUTCHINSON A UNIT OF LEUCADIA NATIONAL CORP WAS NAMED CHAIRMAN OF TSS SUCCEEDING ROBERT K STERN WHO DIED LAST DECEMBER MR PENWELL WAS ALSO NAMED A DIRECTOR OF THIS MAKER OF COUPONDISPENSING MACHINES ALSO ELECTED TO THE BOARD WERE ROBERT J FOLEY 70 PRINCIPAL OF ROBERT J FOLEY INC AN ATHERTON CALIF MARKETING CONCERN AND GERALD R SALTZGABER 56 A PARTNER IN MARKETING CORP OF AMERICA WESTPORT CONN COUNTING THE RESIGNATION OF MICHAEL D KAUFMAN THE BOARD HAS BEEN EXPANDED TO SEVEN MEMBERS SHAREHOLDERS APPROVED A 1FOR10 REVERSE STOCK SPLIT AND AN INCREASE IN AUTHORIZED POSTSPLIT SHARES AT THE COMPANY'S ANNUAL MEETING HELD EARLIER THIS WEEK TSS SAID IT WILL USE SOME OF THE AUTHORIZED SHARES FOR AN EQUITY OFFERING 9302260188 930226 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO MICHAEL W HAGER 49 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT THIS BANK HOLDING COMPANY'S BANC ONE OHIO CORP UNIT WAS PROMOTED TO SENIOR VICE PRESIDENT OF THE HOLDING COMPANY MR HAGER WILL BE RESPONSIBLE FOR THE ADMINISTRATION OF EXECUTIVE COMPENSATION AND EMPLOYEE BENEFITS CORE PERSONNEL POLICIES AND PERSONNEL REGULATORY COMPLIANCE FOR THE CORPORATION WILLIAM C LEITER 54 CONTROLLER WAS PROMOTED TO SENIOR VICE PRESIDENT HE ASSUMES ADMINISTRATIVE RESPONSIBILITIES RELATED TO AUDIT COMPLIANCE REGULATORY LIAISON AND ACQUISITION COORDINATION HE REMAINS CONTROLLER 9302260187 930226 DIGITAL EQUIPMENT PLANT MAYNARD MASS DIGITAL EQUIPMENT CORP SAID IT WILL CLOSE ITS HARDWARE MANUFACTURING PLANT IN GALWAY IRELAND CUTTING ITS WORK FORCE ABOUT 780 EMPLOYEES THE COMPUTER MAKER SAID THE GALWAY PLANT WILL BE PHASED OUT OVER THE NEXT 12 MONTHS WORK BEING DONE THERE WILL BE CONSOLIDATED WITHIN DIGITAL'S WORLDWIDE OPERATIONS THE COMPANY ADDED DIGITAL SAID IT WILL RETAIN ITS EUROPEAN SOFTWARE DEVELOPMENT AND DISTRIBUTION HEADQUARTERS BASED IN GALWAY LAST YEAR DIGITAL SAID IT PLANNED TO CUT 20000 OR MORE OF ITS APPROXIMATELY 108000 WORKERS OVER THE NEXT THREE YEARS 9302260186 930226 EC STUDIES WAYS TO PROTECT INVESTORS IN EVENT OF DEFAULT BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION IS QUIETLY PREPARING RULES FOR A PLAN TO COMPENSATE INVESTORS IN THE EVENT OF AN INVESTMENT FIRM'S BANKRUPTCY OR DEFAULT STEMMING FROM THE INVESTMENT SERVICES DIRECTIVE AGREED TO LAST NOVEMBER BY EC FINANCE MINISTERS THE INVESTOR COMPENSATION PLAN IS DESIGNED TO APPLY RULES OF AN INVESTMENT FIRM'S HOME COUNTRY TO ALL ITS CLIENTS WHETHER LOCATED IN THAT HOME COUNTRY OR ANOTHER COMMUNITY MEMBER STATE INVESTOR PROTECTION IS DISTINCT FROM ANOTHER PROPOSAL ON DEPOSITOR PROTECTION FOR BANK CUSTOMERS THE LATTER MEASURE IS STILL BEING DEBATED BY EC MEMBER STATES WITH GERMANY OBJECTING ON GROUNDS THAT IT'S UNNECESSARY AND WOULD BE INCOMPATIBLE WITH ITS PRIVATE SYSTEM OF GUARANTEES IF AN INVESTMENT FIRM GOES BELLY UP THE COMMISSION SAYS AN INVESTOR'S MONEY WOULD BE INTERMINGLED WITH ALL OTHER ASSETS OF THE BANKRUPT FIRM A COMPENSATION PLAN IN CONTRAST WOULD ALLOW THE INVESTOR TO RECOVER AT LEAST SOME MONEY WITHOUT HAVING TO WAIT FOR LENGTHY BANKRUPTCYCOURT PROCEEDINGS TO BE COMPLETED ONE ISSUE TO BE DISCUSSED WITH MEMBER STATES IS WHETHER THE PLAN SHOULD BE LIMITED TO PRIVATE INVESTORS AS ARE THE PLANS NOW IN PLACE IN BRITAIN AND IRELAND OR SHOULD ALSO EXTEND TO PROFESSIONAL OR INSTITUTIONAL INVESTORS SUCH AS THE CURRENT SYSTEMS IN FRANCE GERMANY AND LUXEMBOURG THE COMMISSION SAYS THIS MATTER MIGHT EVENTUALLY BE LEFT TO MEMBER STATES TO DECIDE FOR THEMSELVES ALTHOUGH BRUSSELS OFFICIALS SUGGEST PENSION FUNDS SHOULD BE EXCLUDED FROM COVERAGE THE INVESTMENT SERVICES DIRECTIVE DOES NOT GIVE INTERMEDIARIES THE RIGHT TO SELL PENSION PLANS ON A CROSSBORDER BASIS BUT PERHAPS THE MOST DIFFICULT ISSUE TO RESOLVE IS THE MINIMUM LEVEL OF PROTECTION CURRENTLY THE NATIONAL PLANS IN PLACE IN THE COMMUNITY RANGE FROM 5900 EUROPEAN CURRENCY UNITS 6993 IN LUXEMBOURG TO 71800 ECUS 85097 IN FRANCE THERE ARE NO SYSTEMS NOW IN PLACE IN SPAIN PORTUGAL AND DENMARK THE CURRENT PROPOSAL ON DEPOSIT PROTECTION CALLS FOR MINIMUM COVERAGE OF 15000 ECUS AND SOME OFFICIALS SUGGEST THE INVESTMENT PROTECTION PLAN SHOULD BE SET AT A SIMILAR LEVEL IN ORDER TO PREVENT A DISTORTION OF COMPETITION BETWEEN BANKS AND INVESTMENT FIRMS THE INVESTMENT SERVICES DIRECTIVE THEY SAY WAS DESIGNED TO GIVE SECURITY BROKERS THE SAME SORT OF ECWIDE PASSPORT ENJOYED BY BANKS THROUGH THE COMMUNITY'S SECOND BANKING DIRECTIVE WHICH TOOK EFFECT LAST MONTH OTHER OFFICIALS POINT OUT HOWEVER THAT THE AVERAGE AMOUNT OF INVESTMENT IS LIKELY TO BE HIGHER THAN THE AVERAGE BANK DEPOSIT AND THE POTENTIAL FOR FRAUD LEADING TO FAILURE MAY BE HIGHER IN THE INVESTMENT FIELD THE COMMISSION SEEKS TO COMPLETE ITS INVESTOR COMPENSATION PROPOSAL BY THE SUMMER 9302260185 930226 WHO'S NEWS DR PEPPER/SEVENUP COS DR PEPPER/SEVENUP COS DALLAS WW CLEMENTS 78YEAROLD RETIRED CHAIRMAN OF DR PEPPER CO WILLIAM E WINTER 72 RETIRED CHAIRMAN OF SEVENUP CO AND MALCOLM CANDLISH 57 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BRK GROUP INC THE HOLDING COMPANY OF BRK ELECTRONICS INC WERE NAMED TO THE BOARD OF THIS SOFTDRINK PRODUCER INCREASING THE BOARD'S SIZE TO SEVEN 9302260184 930226 BANGKOK GIVES THAI FIRM ITS BACKING FOR RAIL PROJECT BANGKOK THAILAND THE BANGKOK METROPOLITAN GOVERNMENT GAVE TANAYONG CO ITS FULL BACKING FOR THE THAI COMPANY'S PLANNED ELEVATED LIGHTRAIL PROJECT PUTTING AN END TO A CAMPAIGN BY A GERMAN CONSORTIUM TO TURN THE PROJECT INTO A SUBWAY TANAYONG EXECUTIVES SAY THEY WILL BEGIN SEEKING INITIAL BIDS ON THE NINEMILE 800 MILLION PROJECT IN MARCH THE COMPANY WON A CONTRACT FROM THE PROVINCIAL GOVERNMENT IN 1991 TO BUILD THE LIGHTRAIL SYSTEM AND WASN'T EAGER TO SWITCH TO WHAT IT CONSIDERED TO BE A MORE DIFFICULT AND EXPENSIVE UNDERGROUND SYSTEM A GERMAN GROUP METRO 2000 HAD LAUNCHED A MEDIA AND LOBBYING CAMPAIGN LATE LAST YEAR TO PROMOTE THE IDEA OF A SUBWAY PARTNERS IN THE CONSORTIUM INCLUDED GERMAN COMPANIES PHILIPP HOLZMANN WAYSS & FRETAG AG DYCKERHOFF & WIDMANN AG HOCHTIEF AG AND BAUER GMBH AND A THAI FIRM ACT CONSULTANTS THE TANAYONG PROJECT IS ONE OF THREE PROPOSED TO HELP SOLVE BANGKOK'S TRAFFIC PROBLEM HOPEWELL HOLDINGS LTD OF HONG KONG HAS A CONTRACT WITH THE STATE RAILWAYS OF THAILAND TO BUILD A 32 BILLION RAIL SYSTEM THE PROPOSAL FOR THE THIRD SYSTEM SKYTRAIN IS MIRED IN RED TAPE 9302260183 930226 FINANCIAL EXECUTIVES SAY DOWNSIZING WILL CONTINUE MORE THAN HALF OF US FINANCIAL EXECUTIVES SAY THE RECESSION HAS ENDED FOR THEIR OWN COMPANIES BUT ALMOST 90 THINK AMERICAN CORPORATIONS OVERALL WILL BE CUTTING JOBS FOR AT LEAST TWO MORE YEARS ACCORDING TO A SURVEY THE EXECUTIVES FOCUSED THEIR PESSIMISM ON EMPLOYMENT AT LARGE CORPORATIONS WHEN ASKED ABOUT THEIR OWN WORK FORCES ONLY 26 OF LARGECOMPANY EXECUTIVES SAID JOBS WOULD GROW IN THE NEXT SIX MONTHS WHILE ONLY 15 OF SMALLCOMPANY EXECUTIVES SAID JOBS WOULD SHRINK THE DATA CAME FROM A QUARTERLY SURVEY BY THE FINANCIAL EXECUTIVES INSTITUTE MORRISTOWN NJ AND INCLUDED RESPONSES FROM 539 INSTITUTE MEMBERS DOWNSIZING WILL CONTINUE TO BE A FACT OF LIFE FOR MUCH OF THIS DECADE SAID NORMAN ROY PRESIDENT OF FEI MOST OF THE NEW JOBS OVER THE NEXT FEW YEARS WILL COME FROM SMALLER COMPANIES CLEARLY LARGE CORPORATIONS WILL HAVE TO COMPLETE THIS PROCESS OF DOWNSIZING AND COST CONTROL BEFORE THEY CAN AGAIN BECOME NET GENERATORS OF NEW JOBS FEI SAID ITS SURVEY SHOWED A SIGNIFICANT INCREASE IN BUSINESS CONFIDENCE OVER A SIMILAR SURVEY IN JULY 1992 MORE RESPONDENTS PREDICTED GAINS IN THEIR COMPANIES' EMPLOYMENT AND UNIT SALES WHILE 42 SAID THEY EXPECT TO RAISE PRICES 9302260182 930226 CALIFORNIA MICROWAVE OFFERING SUNNYVALE CALIF CALIFORNIA MICROWAVE INC SAID IT HAS MADE A PUBLIC OFFERING OF 22 MILLION COMMON SHARES AT 1325 A SHARE THE WIRELESS COMMUNICATIONS COMPANY SAID PROCEEDS WILL BE USED TO PAY DOWN DEBT AS OF DEC 31 1992 THE COMPANY HAD 94 MILLION COMMON SHARES OUTSTANDING 9302260181 930226 LITTON TEAM RECEIVES CONTRACT FROM GREECE FOR SYSTEMS IN F16S BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID THE GREEK GOVERNMENT SELECTED A TEAM LED BY LITTON'S APPLIED TECHNOLOGY DIVISION TO PROVIDE ELECTRONIC WARFARE SYSTEMS FOR THE GREEK AIR FORCE'S F16 AIRCRAFT LITTON ESTIMATED THAT THE CONTRACT WHICH IS CURRENTLY BEING NEGOTIATED WILL BE VALUED WELL IN EXCESS OF 100 MILLION THE CONTRACT WILL INCLUDE AN OPTION FOR ADDITIONAL EQUIPMENT LITTON SAID BESIDES LITTON'S APPLIED TECHNOLOGY DIVISION IN SAN JOSE CALIF THE TEAM INCLUDES RAYTHEON INC'S RAYTHEON ELECTROMAGNETIC SYSTEMS DIVISION IN GOLETA CALIF AND TRACOR AEROSPACE INC AUSTIN TEXAS THE CONTRACT MARKS THE FIRST COMPETITIVE WIN FOR THE LITTONRAYTHEONTRACOR ALLIANCE SET UP LAST SUMMER LITTON A DEFENSE CONCERN SAID ITS WORK ON THE PROGRAM WILL BE DONE AT ITS GRANTS PASS ORE AND HICKSVILLE NY FACILITIES AS WELL AS AT SAN JOSE THE ALLIANCE ALSO WILL SERVE AS AN ASSOCIATE CONTRACTOR TO GENERAL DYNAMICS CORP 9302260180 930226 CHICAGO MERCANTILE SEAT SALE CHICAGO A SEAT ON THE CHICAGO MERCANTILE EXCHANGE WAS SOLD FOR 610000 UP 12000 FROM THE PREVIOUS SALE OF 598000 ON FEB 16 A SEAT ON THE EXCHANGE IS CURRENTLY QUOTED AT 480000 BID AND 620000 OFFERED THE RECORD PRICE FOR A SEAT ON THE EXCHANGE IS 620000 SET JAN 15 9302260179 930226 LETTERS TO THE EDITOR DON'T GIVE ME THAT OLDTIME RELIGION AMERICANS OF EVERY POLITICAL STRIPE SHOULD READ IRVING KRISTOL'S FEB 1 EDITORIALPAGE ARTICLE THE COMING CONSERVATIVE CENTURY' AS A WARNING IF MR KRISTOL PROVES TO BE CORRECT IN PREDICTING THAT RELIGIOUS CONSERVATIVES ARE GOING TO BE THE VERY CORE OF AN EMERGING AMERICAN CONSERVATISM HIS BLAND ACKNOWLEDGMENT THAT THEIR ARDOR TENDS TO OUTRUN THE LIMITS OF POLITICS IN A CONSTITUTIONAL DEMOCRACY MAY TURN OUT TO BE AN UNDERSTATEMENT OF HEROIC PROPORTIONS THE ARDOR SHOWN BY MANY PEOPLE OF THE RELIGIOUS RIGHT IS OFTEN INTOLERANCE MASQUERADING AS PRINCIPLE IN SEEKING TO IMPOSE ITS IDEAS ABOUT SCHOOL PRAYER ABORTION AND A HOST OF OTHER ISSUES ON SOCIETY AT LARGE THE RELIGIOUS RIGHT IS PURSUING A PROGRAM OF BIGOTRY AND DEMAGOGUERY THAT IS ANTITHETICAL TO THE US'S PLURALISTIC HERITAGE BEFORE ANY CRACKPOT CONSERVATIVE THEOCRACY WERE TO IMPOSE ITSELF UPON THE FREE PEOPLE OF THE US WE WOULD HAVE A CIVIL WAR POSSIBLY ONE LIKE THAT IN SPAIN THE ECONOMIC MIRACLE OF SPANISH REVIVAL FAILED TO MATERIALIZE UNDER THE JACKBOOT OF FRANCO AND THE ROMAN CATHOLIC CHURCH IT IS THE FREE HUMAN SPIRIT THAT HAS LIFTED HUMANITY NOT THE STULTIFYING MORAL OPPRESSION OF PARASITES WHO PRESUME TO SPEAK FOR GOD MR KRISTOL'S ANTIDEMOCRATIC CHEAPENING VISION OF RELIGION WHICH ASSAULTS THE STRAW MAN OF SECULAR HUMANISM AS IT INSULTS THE DIGNITY OF EVERY HUMANISTICALLY INCLINED AMERICAN IS MATCHED ONLY BY HIS JAUNDICED CHARACTERIZATION OF CONTEMPORARY SOCIETY I LEFT THE REPUBLICAN PARTY LAST AUGUST AFTER 22 YEARS BECAUSE OF ITS SUBMISSION TO THE PREJUDICE OF THE RELIGIOUS RIGHT BY FOLLOWING MR KRISTOL'S BAD ADVICE WE'D REDUCE THE PARTY OF ABRAHAM LINCOLN TO POLITICALLY INEPT BIGOTS WHO WOULD SINK TO PERPETUAL THIRDPARTY STATUS MR KRISTOL'S THREE PILLARS OF MODERN CONSERVATISM RELIGION NATIONALISM AND ECONOMIC GROWTH AMOUNT TO A CRUELLY DECEPTIVE RUSE RELIGION MIXED WITH POLITICS IS POPPYCOCK AND HYPOCRISY NATIONALISM AS ALBERT EINSTEIN TOLD US IS A CHILDHOOD DISEASE IT IS THE MEASLES OF THE HUMAN RACE AND ECONOMIC GROWTH IS PREDICATED UPON NEITHER ONE PLEASE GOD SAVE US FROM AN UNNECESSARY REVISITATION OF THIS SINISTER TROIKA WHAT SORT OF MAN COULD SAY THE DEMOCRATS ARE NEVER GOING TO BE ABLE TO WELCOME THE RELIGIOUS ANSWER ONLY ONE WHO IS SO OUT OF TOUCH WITH REALITY THAT HE'S UNABLE TO RECOGNIZE OR ACCEPT THE PROFOUND RELIGIOUS CONVICTIONS OF HIS COUNTRYMEN WHEN THEY CONFLICT WITH HIS OWN ANYONE WHO WOULD ASCRIBE RELIGIOSITY TO ONE POLITICAL PARTY IN THE US AND THE UTTER LACK OF RELIGION TO THE OTHER MAJOR POLITICAL PARTY HAS CLEARLY SPUN HIS MORAL COMPASS MR KRISTOL'S BRILLIANT ARTICLE IS A RALLYING CALL FOR CONSERVATIVES AND ANYONE WHO REALLY SEEKS HEALTHY CHANGE TO FOCUS HIS EFFORTS ON VALUES THE CONCEPTS OF RIGHT AND WRONG RESPECT FOR EVERY HUMAN BEING AND THAT RIGHTS REQUIRE RESPONSIBILITY MUST ONCE AGAIN BECOME DEEPLY INGRAINED IN ALL PEOPLE WE MUST FOCUS ON CHANGING THE EDUCATIONAL SYSTEM IN THE US TO ACHIEVE THIS END SECULAR HUMANISM FOCUSES ONLY ON MATERIALISM AND THE SELFISH INTERESTS OF EACH INDIVIDUAL CONSERVATIVES NEED TO RALLY AROUND THE IDEAS PRESENTED BY MR KRISTOL AND BEGIN TO FIGHT FOR THEIR IDEAS WHETHER IT'S WITH CURRENT POLITICAL PARTIES OR A NEW PARTY MR KRISTOL'S CLAIM THAT SECULAR HUMANISM IS DEAD AND THAT ONLY STRENGTHENING RELIGION WILL CURE OUR SOCIAL ILLS IS BELIED BY HOLY WARS IN ASIA AND THE MIDDLE EAST AND ETHNIC CLEANSING IN THE BALKANS WHERE SECULAR HUMANISM IS UNKNOWN AND STRONG RELIGIOUS ORGANIZATIONS SUPPORT GENOCIDE MR KRISTOL'S INSISTENCE THAT A CONSERVATIVE CENTURY IS DAWNING IS STUNNING IN ITS REFUSAL TO ACKNOWLEDGE THAT HIS DESCRIPTION OF CONSERVATISM AND THE FORCES THAT MOTIVATE IT IS PASSE NOTWITHSTANDING THE AMPLE EVIDENCE AROUND HIM AND THE RESULTS OF POLLS TAKEN AMONG THE ESPECIALLY YOUNGER ELECTORATE HE STILL BELIEVES THE RELIGIOUS RIGHT'S DAY IS COMING AT THE EXPENSE OF SECULAR HUMANISM IN THE SMOLDERING RUINS OF THE RELIGIOUS RIGHT'S FAILED PUTSCH IN THE GENERAL ELECTION AND IN THE RECENT SELECTION OF A NEW GOP CHAIRMAN MR KRISTOL BRAZENLY DECLARES SOME SORT OF VICTORY FOR HIS UNIQUE VIEW OF THE WORLD IN FACT THE FUTURE OF CONSERVATISM LIES WITH THOSE WHO ARTICULATE LIBERTARIANISM AND WITH THAT ARTICULATION CAN ALSO COME A REVERENCE FOR FAMILY AND AGGRESSIVE APPROACH TO CRIME EPITOMIZED BY MASSACHUSETTS GOV WILLIAM WELD THE GENERATION THAT HAS SEIZED THE WHITE HOUSE IS GOING TO HOLD IT FOR MANY YEARS TO COME THE PRINCIPLES OF JEFFERSONIAN LIBERALISM INFORM MODERN CONSERVATISM AND BABY BOOMERS THE DEAD HAND OF PRIESTS RABBIS AND OTHER MULLAHS MAY TOUCH A SUBSTANTIAL NUMBER OF AMERICANS BUT THEY'RE DYING AWAY RONALD REAGAN PERHAPS AS WELL AS ANYONE SIGNALED IN HIS OWN LIFESTYLE A SECULAR POINT OF VIEW HE VERY RARELY WENT TO CHURCH AND WHEN HE DID VENTURE OUT HIS WAS A RANDOM SAMPLING OF MAINSTREAM PROTESTANT CHURCHES THE RELIGIOUS ARE A MUCH BROADER GROUP IN AMERICAN PARTY POLITICS AND IN THE HUMANIST COMMUNITY THAN THE DOGMATIC FUNDAMENTALISTS MR KRISTOL EQUATES WITH THE RELIGIOUS MANY OF US OFFER A VIBRANT RELIGIOUS AND ETHICAL HUMANISM FREE OF THE STERILENESS MR KRISTOL ATTACHES TO SECULAR HUMANISM WHILE THIS BROADER SPECTRUM OF MAINSTREAM CHRISTIANITY JUDAISM AND RELIGIOUS HUMANISTS OFFERS A RICH ETHICCENTERED PHILOSOPHY IT IS ALSO FREE OF THE OPPRESSIVENESS OF THE RELIGIOUS RIGHT THAT HAS DOMINATED THE REPUBLICAN PARTY RECENTLY THERE IS A BIG DIFFERENCE BETWEEN MORAL GUIDANCE AND MORAL COERCION WHILE THERE IS MUCH I MIGHT CRITICIZE IN THE DEMOCRATIC PARTY BEING ANTIRELIGIOUS AS MR KRISTOL IMPLIES IS NOT ONE OF THEM MR KRISTOL'S DIATRIBE AGAINST LIBERALISM DOESN'T QUITE EXPLAIN THE FACTS HE BELIEVES RELIGION AND CONSERVATISM IN LARGE DOSES CORRELATE WITH LOWER CRIME RATES A CURSORY GLANCE OVER THE WORLD SCENE WOULD CONTRADICT HIM TAKE ENGLAND FOR EXAMPLE IT IS FAR LESS RELIGIOUS THAN THE US AND IN SPITE OF MARGARET THATCHER HAS BEEN UNDER A WELFARE STATE FOR DECADES MR KRISTOL'S MODEL WOULD INDICATE THAT IT WOULD BE CRIMEINFESTED YET ENGLAND'S MURDER RATE IN A COUNTRY OF 55 MILLION PEOPLE IS BELOW THAT OF ANY LARGE US CITY THE SAME IS TRUE THROUGHOUT NORTHERN EUROPE MAYBE MR KRISTOL'S MODEL NEEDS TO CONSIDER OTHER FACTORS STARTING WITH GUNS 9302260178 930226 CORPORATE FOCUS NTT'S CUTBACKS SIGNAL UNCERTAIN TRANSITION IN JAPAN ECONOMY AND NATION ARE ON BUMPY RIDE TOWARD FREE MARKET SYSTEM BY JACOB M SCHLESINGER AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHEN NIPPON TELEGRAPH & TELEPHONE CORP ANNOUNCES TODAY THAT IT WILL SLASH STAFF AND CLOSE OFFICES IT WILL SPOTLIGHT A MAJOR ECONOMIC STRUGGLE UNDERWAY IN JAPAN THE BUMPY TRANSITION FROM COZY CONTROLLED STABILITY TO THE MORE UNCERTAIN FREE MARKET JAPAN'S HUGE PARTPUBLIC PARTPRIVATE TELECOMMUNICATIONS CENTAUR UNDER ATTACK BY NEW COMPETITORS BUT TIGHTLY REINED IN BY REGULATORS PUBLICLY TRADED BUT MAJORITYOWNED BY THE GOVERNMENT WILL UNVEIL A NEW COSTCUTTING PLAN LIKELY TO TRIM ITS PAYROLL BY MORE THAN 10 OR 30000 EMPLOYEES AS WELL AS A CONSOLIDATION OF MANY OFFICES AND RETAIL OUTLETS OVER THE NEXT THREE YEARS THE MARKET STRUGGLE IS GETTING HARDER AND HARDER SAYS AN NTT SPOKESMAN WE MUST BECOME MORE EFFICIENT CRITICS SAY NTT'S NEW PLAN WILL BARELY SCRATCH THE SURFACE IN THE LONG RUN THEY WILL HAVE TO CUT MORE SAYS SACHIO SEMMOTO WHO QUIT NTT ABOUT A DECADE AGO OUT OF FRUSTRATION WITH THE BUREAUCRATIC COMPANY AND WHO NOW HELPS RUN ONE OF ITS BIGGEST COMPETITORS DDI CORP OTHERWISE THEY WILL NOT SURVIVE THE CATALYST FOR NTT'S ACTIONS IS TUMBLING PROFITS THE COMPANY ESTIMATES ITS PRETAX PROFIT IN THE YEAR ENDING MARCH 31 WILL DROP 35 FROM A YEAR AGO TO 229 BILLION YEN 195 BILLION NTT SAYS THAT NUMBER COULD FALL BY ANOTHER ONETHIRD FROM THIS YEAR'S DEPRESSED LEVEL NTT WHICH HAD REVENUE LAST FISCAL YEAR OF MORE THAN SIX TRILLION YEN IS SO BIG THAT ITS TREMORS ARE LIKELY TO HURT COMPANIES THROUGHOUT THIS COUNTRY THE COMPANY IS JAPAN'S LARGEST EMPLOYER ITS BIGGEST CAPITAL SPENDER AND ACCOUNTS FOR AN ESTIMATED 3 OF THE TOKYO STOCK MARKET'S TOTAL CAPITALIZATION CLEARLY THE LACKLUSTER STATE OF JAPAN'S ECONOMY IS ONE BIG CAUSE OF NTT'S PAIN BUT AT THE HEART OF THE COMPANY'S TROUBLES IS A SIMPLE FACT IT WAS NEVER DESIGNED TO RUN EFFICIENTLY BY FREEMARKET STANDARDS IN ADDITION TO PROVIDING BASIC PHONE SERVICES THE COMPANY HAS LONG BEEN JAPAN INC'S SUGAR DADDY DOLING OUT TECHNOLOGICAL GOODIES AND BIG CONTRACTS TO OTHER CORPORATIONS LAVISH CONTRIBUTIONS TO POLITICIANS AND HIGHPAYING JOBS TO WORKERS IN THE TELECOMMUNICATIONS UNION IN A DEREGULATED AND INCREASINGLY INTERNATIONAL MARKET NTT IS FINDING IT MORE DIFFICULT TO BALANCE THOSE MISSIONS WITH THE BOTTOM LINE IN ADDITION TO CUTTING EMPLOYEES NOW NTT IS PUTTING SEVERE REQUIREMENTS ON ITS SUPPLIERS TELLING US WE HAVE TO CUT PRICES BECAUSE NTT'S PROFITS ARE BAD COMPLAINS AN EXECUTIVE AT ONE SUPPLIER NTT PLAYED A BIG ROLE NURTURING ITS MAIN SUPPLIERS NEC CORP FUJITSU LTD HITACHI LTD AND OKI ELECTRIC INDUSTRY CO BY GIVING THEM A STEADY STREAM OF CONTRACT BUSINESS AND PAYING INFLATED PRICES FOR IT IN FACT THIS NETWORK GREW SO POWERFUL OVER THE YEARS THAT EVEN THE MAN ON THE STREET REFERRED TO NTT AND ITS SUPPLIERS AS THE FAMILY THESE DAYS JAPAN'S LEADERS APPEAR TO HAVE MIXED FEELINGS ABOUT JUST HOW MUCH CONTROL OVER THIS NETWORK THEY WANT TO TURN OVER TO THE INVISIBLE HAND OF THE FREE MARKET JAPAN'S MINISTRY OF POSTS AND TELECOMMUNICATIONS FOR INSTANCE EXPECTS NTT SOMEHOW BOTH TO BECOME MORE MARKETORIENTED AND TO KEEP SPENDING ENORMOUS SUMS ON CREATING MARKETS FOR NEW TECHNOLOGIES SUCH AS CONNECTING EVERY HOME IN JAPAN TO OPTICAL FIBER BY 2015 THROUGHOUT THE JAPANESE ECONOMY BUREAUCRATS AND EXECUTIVES ARE NOW WRESTLING WITH SIMILAR DILEMMAS THE FINANCE MINISTRY FOR INSTANCE PROMOTES FINANCIAL DEREGULATION YET GOES TO GREAT LENGTHS TO PROP UP THE STOCK MARKET WHEN PRICES DROP TOO LOW JAPANESE COMPANIES WANT TO EMBRACE TRADITIONAL SOCIAL COMPACTS SUCH AS LIFETIME EMPLOYMENT GUARANTEES BUT ALSO NEED TO LAYOFF WORKERS WHEN SALES TURN DOWN NTT'S CURRENT TROUBLES GO BACK TO 1985 THAT YEAR THE GOVERNMENT BOTH PRIVATIZED THE COMPANY AND DEREGULATED THE DOMESTIC LONGDISTANCE TELEPHONE NETWORK NOW UPSTARTS LIKE MR SEMMOTO'S DDI WHICH DON'T HAVE NTT'S HUGE FIXED COSTS CARRY MORE THAN 50 OF THE TRAFFIC IN THE TOKYOOSAKA TELECOMMUNICATIONS CORRIDOR THE BUSIEST ROUTE IN JAPAN NTT ALSO BLEW AN EARLY LEAD IN JAPAN'S CELLULAR TELEPHONE MARKET ALTHOUGH THE COMPANY ACTUALLY STARTED A MONOPOLY CELLULAR SERVICE IN 1979 FOUR YEARS EARLIER THAN SIMILAR SERVICE BEGAN IN THE US IT DISCOURAGED CONSUMERS WITH HIGH PRICES DDI AND A COLLECTION OF SMALL REGIONAL COMPANIES LATER GRABBED NEARLY 40 OF THE MARKET NTT COMPLAINS THAT GOVERNMENT REGULATORS ARE LIMITING ITS ABILITY TO FIGHT BACK THE TELECOMMUNICATIONS MINISTRY WON'T ALLOW NTT TO RAISE NEW REVENUE BY INCREASING ITS LOCAL PHONE RATES A REMARKABLY CHEAP 10 YEN 85 CENTS FOR THREE MINUTES OR TO COMPETE MORE EFFECTIVELY IN LONGDISTANCE BY CUTTING RATES AS MUCH AS IT WANTS BUT THE REGULATORS SEEM TO THINK NTT IS CRYING WOLF SOME DISMISS THE COMPANY'S DIRE STATEMENTS AS GRANDSTANDING AND SAY THE PERSONNEL CUTS ARE JUST CLEVER PUBLIC RELATIONS MOVES MEANT TO CONVINCE THE PUBLIC THAT NTT DESERVES ITS RATE RISE TODAY'S RESTRUCTURING IS ALSO PART OF A BIGGER BATTLE OVER NTT'S ULTIMATE FATE SINCE THE MINISTRY STILL WANTS TO TRIM THE FAT AND BREAK UP THE COMPANY IN 1995 MIRRORING THE BREAKUP OF AMERICAN TELEPHONE & TELEGRAPH CO IN THE US AS IT IS THE COMPANY PAYS SALARIES CLOSER TO JAPAN'S TOPNOTCH BANKS THAN TO MANUFACTURERS RATHER THAN EASING OUT WORKERS WHOSE JOBS BECAME OBSOLETE BECAUSE OF AUTOMATION NTT OPENED A SLEW OF UNNECESSARY SALES OFFICES AND STAFFED THEM WITH THE REDUNDANT EMPLOYEES EVEN THE LATEST ROUND OF CUTS WILL LIKELY BE HANDLED AS GENTLY AS POSSIBLE WHILE THERE MAY BE AN EARLY RETIREMENT PLAN THE NTT SPOKESMAN SAYS THERE WON'T BE ANY LAYOFFS AS AN NTT PLANNING MANAGER IN THE EARLY 1980S DDI'S MR SEMMOTO SAYS HE ONCE FLOATED THE IDEA OF CUTTING THE COMPANY'S WORK FORCE DOWN TO 160000 EMPLOYEES OF COURSE THEY CANNOT CUT SO THEY TRANSFER THEIR EMPLOYEES TO THEIR SUBSIDIARIES HE SAYS NOTING THAT THE SUBSIDIARIES BEAR THE ADDED COSTS BY CHARGING MORE TO THEIR NTT CONTRACTS MANY OF THE EMPLOYEES AFFECTED BY THE LATEST REDUCTIONS WILL ALSO LIKELY END UP AT NTT AFFILIATES AS IF NTT MANAGEMENT'S JOB WASN'T TOUGH ENOUGH THERE'S ONE OTHER GROUP TO PLACATE THE LONGSUFFERING SHAREHOLDERS WHEN THE COMPANY WENT PUBLIC IN 1987 JAPANESE CITIZENS EAGERLY BOUGHT THE STOCK AND THE SHARE PRICE SOARED IN THE FIRST FEW MONTHS MANY CRITICS LATER ARGUED HOWEVER THAT THE INITIAL PUBLIC OFFERING WAS RIGGED THE POWERFUL FINANCE MINISTRY THEY SAY CONVINCED SECURITIES HOUSES TO HYPE THE STOCK THE BROKERAGES GOT THEIR HIGH FIXED COMMISSIONS AND THE GOVERNMENT RAKED IN THE PROCEEDS FROM THE MAMMOTH SALE NTT'S SHARES COULDN'T DEFY GRAVITY FOR LONG HOWEVER AND CRASHED EVEN BEFORE THE BROADER MARKET DID THE STOCK IS NOW TRADING AT 80 BELOW ITS PEAK THOSE SHAREHOLDERS WHO INVESTED THEIR LIFE SAVINGS IN NTT SHARES MAY GET SOME SATISFACTION FROM THE FACT THAT THEY'RE NOT ALONE THE GOVERNMENT WHICH ARGUABLY CREATED THE MESS IN THE FIRST PLACE NOW NEEDS TO RAISE MONEY BUT ALSO IS LOATHE TO DUMP ITS NTT SHARES FOR NOW THE SHARE PRICE HAS SIMPLY FALLEN TOO FAR TO MAKE THAT WORTHWHILE 9302260177 930226 CANADIAN FIRMS' PROFITS OFF OTTAWA CANADIAN CORPORATIONS' OPERATING PROFITS DECLINED 196 IN THE 1992 FOURTH QUARTER TO A SEASONALLY ADJUSTED 86 BILLION CANADIAN DOLLARS US68 BILLION FROM C107 BILLION IN THE PRECEDING THREE MONTHS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE PROFIT DECLINE WAS ATTRIBUTED MAINLY TO REAL ESTATE WRITEDOWNS AND TO BADLOAN PROVISIONS BY BANKS AND OTHER FINANCIAL INSTITUTIONS FOURTHQUARTER CORPORATE REVENUE ROSE 18 TO C269 BILLION FROM C2642 BILLION IN THE JULYSEPTEMBER PERIOD 9302260176 930226 WHO'S NEWS AMES DEPARTMENT STORES INC AMES DEPARTMENT STORES INC ROCKY HILL CONN PETER THORNER CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT MR THORNER 49 YEARS OLD JOINED THE RETAILER IN 1990 AND IS ITS SENIOR EXECUTIVE AMES SAID AMES EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN DECEMBER A SPOKESWOMAN SAID THE POST OF PRESIDENT HAS BEEN VACANT SINCE JUNE 1991 WHEN THE FORMER PRESIDENT GEORGE GRANOFF LEFT THE COMPANY 9302260175 930226 FINANCING BUSINESS OLSTEN CORP OLSTEN CORP WESTBURY NY SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 100 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 A SPOKESMAN SAID PROCEEDS WILL BE USED FOR WORKING CAPITAL PURPOSES AND ACQUISITIONS OLSTEN IS A PROVIDER OF TEMPORARY PERSONNEL SERVICES 9302260174 930226 BAILEY EXPECTS TO POST BIG RISE IN 2NDPERIOD NET BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BAILEY CORP SAID IT EXPECTS TO POST A BIG INCREASE IN NET INCOME FOR ITS FISCAL SECOND QUARTER AS SALES NEARLY DOUBLED THE AUTOMOTIVE PARTS MAKER EXPECTS TO REPORT NET INCOME OF 398000 OR 11 CENTS A SHARE FOR THE QUARTER ENDED JAN 24 LEN HEILMAN THE COMPANY'S CHIEF FINANCIAL OFFICER SAID THAT COMPARES WITH NET INCOME OF 41000 OR ONE CENT A SHARE A YEAR AGO SALES CLIMBED 89 TO 214 MILLION FROM 113 MILLION A YEAR EARLIER MR HEILMAN SAID MR HEILMAN ALSO SAID A MAJOR LENDER HAS ASKED BAILEY TO RAISE ADDITIONAL CAPITAL ALTHOUGH THE COMPANY ISN'T IN DEFAULT ON ANY OF ITS BANK COVENANTS THE CONDITION WAS IMPOSED AS A RESULT OF INCREASED CREDIT LINES TO BAILEY PLUS ADDITIONAL DEBT TAKEN ON WHEN BAILEY PURCHASED TRANSPLASTIC INC OF CONNEAUT OHIO LAST JUNE MR HEILMAN SAID BAILEY'S CREDIT LINE HAS BEEN EXPANDED TO 125 MILLION FROM 95 MILLION BUT DECLINED TO SAY HOW MUCH OF AVAILABLE CREDIT HAS BEEN USED AS A RESULT THE COMPANY IS CONSIDERING A PUBLIC OR PRIVATE SECURITIES OFFERING BEFORE THE END OF THE YEAR DETAILS OF THE RECAPITALIZATION PLAN HAVEN'T BEEN WORKED OUT IT WILL BE A SIGNIFICANT SUM TO CONTRIBUTE TO THE BALANCE SHEET MR HEILMAN SAID THE COMPANY HAS TURNED THE CORNER AND NOW REALLY NEEDS TO RAISE EQUITY TO TAKE ADVANTAGE OF WHAT LOOKS LIKE A VERY STRONG AUTOMOTIVE MARKET RIGHT NOW JANE GILDAY AN ANALYST FOR TUCKER ANTHONY INC SAID BASED ON ITS CURRENT RATE OF ORDERS THE COMPANY ALSO SAID IT EXPECTS TO POST SALES OF MORE THAN 83 MILLION IN FISCAL 1993 ENDING IN JULY THE COMPANY ALSO SAID IT IS NOT UNCOMFORTABLE WITH PROJECTIONS BY ANALYSTS THAT IT WILL EARN BETWEEN 70 CENTS TO 90 CENTS A SHARE IN FISCAL 1993 IT DECLINED TO BE MORE SPECIFIC IN FISCAL 1992 BAILEY HAD NET INCOME OF 1 MILLION OR 27 CENTS A SHARE ON SALES OF 561 MILLION MR HEILMAN SAID THE COMPANY'S SALES AND PROFIT GROWTH IN THE FISCAL SECOND QUARTER WERE TIED TO BAILEY'S SUCCESS IN MARKETING AN EXPANDED LINE OF PLASTICS PARTS TO THE AUTOMOTIVE INDUSTRY BAILEY NOW MAKES APPROXIMATELY 70 DIFFERENT AUTOMOTIVE PARTS FOR CARS VANS AND SMALL TRUCKS UP FROM 44 LAST YEAR AND 22 THE YEAR BEFORE AMONG OTHER THINGS BAILEY MAKES BUMPER COVERS SIDE MOLDINGS GRILL PARTS AND STONE DEFLECTORS BUT THE INCREASED COST OF BUILDING NEW TOOLS AND TRAINING EMPLOYEES TO HANDLE THE NEW MACHINERY HAS ADDED TO THE COMPANY'S DEBT LOAD MR HEILMAN SAID BAILEY HAD APPROXIMATELY 13 MILLION OF LONGTERM DEBT OUTSTANDING BEFORE ITS PURCHASE OF TRANSPLASTIC WHICH ADDED 7 MILLION IN DEBT FOR THE SIX MONTHS THE COMPANY EXPECTS TO REPORT NET INCOME OF 567000 OR 15 CENTS A SHARE UP FROM 81000 OR TWO CENTS A SHARE IN THE YEAREARLIER PERIOD SALES WERE 433 MILLION UP 75 OVER 248 MILLION LAST YEAR 9302260173 930226 INTERNATIONAL ROYAL DUTCH/SHELL POSTS 92 EARNINGS RISE BUT ANALYSTS AND INVESTORS ARE UNIMPRESSED BY BHUSAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA ROYAL DUTCH/SHELL GROUP SAID ITS FOURTHQUARTER NET INCOME ROSE 92 TO 945 MILLION 135 BILLION FROM 492 MILLION A YEAR EARLIER EXCEEDING ESTIMATES OF SOME ANALYSTS WHO NEVERTHELESS SAID THE OUTLOOK FOR 1993 ISN'T AS GOOD THE ANGLODUTCH OIL CONCERN SAID NET INCOME FOR THE FULL YEAR ROSE 8 TO 312 BILLION FROM 289 BILLION IN 1991 BOTH SETS OF FIGURES ARE ON AN ESTIMATED CURRENTCOSTOFSUPPLIES BASIS WHICH EXCLUDES INVENTORY GAINS OR LOSSES ON A HISTORICCOST BASIS FOURTHQUARTER NET MORE THAN DOUBLED TO 928 MILLION FROM 454 MILLION FOR THE FULL YEAR NET ROSE 28 TO 306 BILLION FROM 240 BILLION BUT ANALYSTS FOUND REASONS TO FRET ONE ANALYST IN LONDON SAID THE 1992 RESULTS REFLECTED BIG CURRENCY GAINS AND A LARGE NUMBER OF EXCEPTIONAL ITEMS AND I DON'T KNOW THAT THEY CAN BE REPEATED AT SWISS BANK CORP IN LONDON ANALYST ALAN MARSHALL ADDED THAT PERHAPS PEOPLE ARE READING THE FOURTHQUARTER NUMBERS AND SEEING THE START OF A RECOVERY IN HIS OPINION NO RECOVERY HAS BEGUN INVESTORS APPEARED TO HOLD A SIMILAR OPINION IN LATE TRADING ON LONDON'S STOCK EXCHANGE YESTERDAY SHELL SHARES ROSE ONE PENCE 14 CENTS TO 583 PENCE IN AMSTERDAM TRADING ROYAL DUTCH SHARES CLOSED AT 15420 GUILDERS 8422 A SHARE UP 020 DUTCH GUILDER I THINK IT'S OVERVALUED MR MARSHALL SAID INDEED ROYAL DUTCH/SHELL ITSELF WASN'T SANGUINE ABOUT ITS 1993 OUTLOOK IT SAID OIL PRICES CONTINUE TO BE LOW AND SLUGGISH ECONOMIC GROWTH IS HURTING ITS OPERATIONS MOREOVER FOURTHQUARTER LOSSES FROM ITS CHEMICALS OPERATIONS WIDENED TO 183 MILLION FROM 90 MILLION A YEAR EARLIER THE COMPANY ALSO REPORTED LOSSES FROM ITS COAL AND METALS OPERATIONS THE COMPANY IMPLIED THAT IT WILL CONSIDER MORE ASSET SALES IN 1992 ROYAL/DUTCH SHELL SOLD PRODUCTION ASSETS IN NORTH AMERICA EUROPE AND INDONESIA THERE ALSO WERE ONETIME CHARGES INCLUDING 131 MILLION RELATED TO LOSSES IN SPECULATIVE CURRENCYEXCHANGE TRADING AT SHOWA SHELL SEKIYU KK 50OWNED BY ROYAL DUTCH/SHELL ROYAL DUTCH/SHELL ALSO DISCLOSED THAT THE TRADING SPECULATING AGAINST THE RISE OF THE YEN AGAINST THE DOLLAR INDICATED AN ADDITIONAL POTENTIAL NET LOSS OF 65 MILLION THIS YEAR THE JAPANESE COMPANY ITSELF REPORTED A 12 DROP IN 1992 PRETAX PROFIT TO 3803 BILLION YEN 324 MILLION FROM 4338 BILLION YEN THE PRESIDENT OF SHOWA SHELL TAKESHI HENMI SAID YESTERDAY THE COMPANY WOULD FIRE A GENERAL MANAGER IN CHARGE OF FINANCIAL AFFAIRS A MANAGING DIRECTOR ALSO RESIGNED TAKING BLAME FOR UNREALIZED LOSSES ANNOUNCED MONDAY OF MORE THAN 1 BILLION MR HENMI ADDED THAT HE AND CHAIRMAN KIYOSHI TAKAHASHI PLAN TO QUIT ONCE THEY ESTABLISH A PLAN TO FIX THE FINANCIAL SITUATION 9302260172 930226 WHO'S NEWS CORTECH INC CORTECH INC DENVER JACQUELINE K BARTON 40 YEARS OLD WAS APPOINTED TO THE BOARD FILLING A VACANCY CREATED WHEN PHILIP S SCHEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF US BIOSCIENCE RESIGNED IN OCTOBER MS BARTON A MACARTHUR FOUNDATION FELLOW IS A PROFESSOR OF CHEMISTRY AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY WHERE SHE HAS TAUGHT AND CONDUCTED RESEARCH IN BIOINORGANIC CHEMISTRY SINCE 1989 SHE ALSO SERVES AS A DIRECTOR OF DOW CHEMICAL CO 9302260171 930226 ECONOMY CLAIMS FOR JOBLESS BENEFITS ROSE IN EARLY FEBRUARY WASHINGTON INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS CLIMBED 4000 IN THE WEEK ENDED FEB 13 TO 325000 THE LABOR DEPARTMENT SAID SOME ANALYSTS CALLED THE RISE SURPRISING CLAIMS USUALLY FALL DURING WEEKS WHEN HOLIDAYS REDUCE THE NUMBER OF DAYS TO FILE FOR BENEFITS LINCOLN'S BIRTHDAY FELL ON FEB 12 AND SOME STATE OFFICES WERE CLOSED HOWEVER THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS BELIEVE IS A BETTER INDICATOR OF LABOR MARKET CONDITIONS FELL DURING THE WEEK TO 334500 FROM 343500 THE LARGEST INCREASE IN CLAIMS CAME IN MICHIGAN REFLECTING LAYOFFS IN THE AUTOMOTIVE INDUSTRY THE LARGEST DECLINE CAME IN CALIFORNIA BUT STATE OFFICIALS GAVE NO REASON FOR THE CHANGE 9302260170 930226 SAN MIGUEL HAS SPECIAL DIVIDEND MANILA SAN MIGUEL CORP DECLARED A SPECIAL 20 STOCK DIVIDEND ON TOP OF AN INCREASE IN THE QUARTERLY DIVIDEND WHICH WAS BOOSTED TO 025 PESO ONE CENT A SHARE FROM 020 PESO THE SPECIAL DIVIDEND SUBJECT TO APPROVAL BY THE PHILIPPINE FOOD AND BREWERY COMPANY'S SHAREHOLDERS AT THEIR ANNUAL MEETING APRIL 20 IS PAYABLE ON JULY 4 TO SHAREHOLDERS OF RECORD MAY 20 THE INCREASED QUARTERLY DIVIDEND APPLICABLE TO HOLDERS OF RECORD MARCH 19 WILL BE PAID APRIL 26 THE MOVES CAME AFTER THE COMPANY ANNOUNCED 1992 CONSOLIDATED NET INCOME OF 359 BILLION PESOS 1447 MILLION UP 28 FROM THE PREVIOUS YEAR 9302260169 930226 WHO'S NEWS SOUTHERN NATIONAL CORP SOUTHERN NATIONAL CORP LUMBERTON NC G LEE CORY WAS PROMOTED TO PRESIDENT OF SOUTHERN NATIONAL BANK OF SOUTH CAROLINA SUCCEEDING ROBERT E GREENE MR CORY 52 YEARS OLD WAS THE CORPORATION'S REGIONAL EXECUTIVE IN GREENSBORO NC MR GREENE 43 MOVES TO THE CORPORATION'S SENIOR GROUP AS EXECUTIVE OFFICER IN CHARGE OF COMMERCIAL BANKING 9302260168 930226 SEC CHIEF SAYS TAXEXEMPT FUNDS NEED MORE SCRUTINY BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS SAID INVESTORS IN TAXEXEMPT MONEYMARKET FUNDS SHOULD BE AFFORDED THE SAME SECURITIES LAW PROTECTIONS AS INVESTORS IN TAXABLE MONEYMARKET FUNDS SPECIFICALLY MR ROBERTS CALLED FOR AN EXPLICIT INFORMATION REQUIREMENT ON THE MUNICIPAL SECURITIES THAT GO INTO TAXEXEMPT FUNDS IN ORDER TO ENSURE THE INTEGRITY OF THOSE FUNDS THE PROPOSAL COULD HAVE FARREACHING IMPLICATIONS FOR THE LARGELY UNREGULATED MUNICIPAL BOND MARKET IT WOULD EFFECTIVELY BAR MANAGERS OF TAXEXEMPT BOND FUNDS FROM BUYING TAXEXEMPT SECURITIES FOR THEIR FUNDS UNLESS THE STATE AND LOCAL GOVERNMENTAL ISSUERS PROVIDE CONTINUING INFORMATION TO THE MARKETPLACE ON MATERIAL DEVELOPMENTS RELEVANT TO THE SECURITIES' VALUE IN THE SECONDARY MARKET I WOULD THINK THAT FUND MANAGEMENT WOULD NEED ACCESS TO CURRENT INFORMATION IN ORDER TO DETERMINE THAT A SECURITY IS AN APPROPRIATE INVESTMENT FOR A MONEYMARKET FUND THE SEC COMMISSIONER TOLD A BOND CONFERENCE IN CHICAGO A LEADING GRIPE AMONG MUNICIPAL ANALYSTS AND SOME INSTITUTIONAL INVESTORS IS THE ALLEGED INADEQUACY OF SECONDARYMARKET DISCLOSURE UNLIKE CORPORATE SECURITIES MUNIS AREN'T REGISTERED WITH THE SEC AND ISSUERS OF TAXEXEMPT SECURITIES AREN'T REQUIRED TO DISCLOSE MATERIAL DEVELOPMENTS RELEVANT TO THEIR MARKET VALUE SUGGESTING THAT THE RULES ALREADY DEEMED APPROPRIATE FOR 400 BILLION OF TAXABLE MONEYMARKET FUNDS SHOULD ALSO BE APPROPRIATE FOR 100 BILLION OF TAXEXEMPT FUNDS MR ROBERTS SAID HE DOESN'T UNDERSTAND HOW A BOARD OF DIRECTORS FOR A TAXEXEMPT MONEYMARKET FUND COULD DETERMINE THAT A SECURITY IS OF MINIMAL RISK AS IS CURRENTLY REQUIRED UNLESS THE ISSUER IS WILLING TO PROVIDE SECONDARYMARKET INFORMATION MR ROBERTS SAID THAT AN EXPLICIT INFORMATION REQUIREMENT SHOULD BE ADDED TO SEC RULES CALLING THE MUNICIPAL BOND AREA A REGULATORY JURISDICTIONAL NIGHTMARE MR ROBERTS ADDED THAT HE HAS ASKED THE SEC'S MARKETREGULATION AND ENFORCEMENT DIVISIONS TO REVIEW THE PRESENT COLLECTIVE EXAMINATION AND ENFORCEMENT EFFORTS TO DETERMINE IF THEY CAN BE IMPROVED REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE WITH JURISDICTION OVER SECURITIES MATTERS HAS PROMISED HEARINGS THIS YEAR ON THE REGULATION OF MUNICIPAL BOND MARKETS 9302260167 930226 FIRST CHICAGO TO SELL GE UNIT 1 BILLION IN REAL ESTATE ASSETS CHICAGO FIRST CHICAGO CORP SAID IT WILL SELL 1 BILLION OF BAD REAL ESTATE LOANS AND PROPERTIES TO GE CAPITAL FOR ABOUT 500 MILLION THE DEAL WILL ALLOW FIRST CHICAGO TO SHED ABOUT ONEHALF OF ITS 2 BILLION IN BAD REAL ESTATE ASSETS AND PROVIDES FURTHER EVIDENCE THAT LIQUIDITY IS RETURNING TO THE COMMERCIAL REAL ESTATE MARKET THE SALE ISN'T EXPECTED TO MATERIALLY AFFECT THE BANKS EARNINGS BECAUSE IT HAD ALREADY WRITTEN DOWN THE PORTFOLIO AND RESERVED AGAINST IT NEVERTHELESS THE STOCK MARKET REACTED FAVORABLY TO THE NEWS IN PART BECAUSE THE DEAL SUGGESTS THE COMPANY MIGHT SUCCEED IN DISPOSING OF ITS BAD ASSETS EARLIER THAN LATE 1994 AS ORIGINALLY FORECAST THE COMPANY'S SHARES CLOSED AT 4375 UP 1625 IN TRADING ON THE NEW YORK STOCK EXCHANGE GE CAPITAL A UNIT OF GENERAL ELECTRIC CORP IN FAIRFIELD CONN IS PROBABLY THE BIGGEST OF THE SOCALLED VULTURE REALESTATE BUYERS THE COMPANY HAS ALREADY INVESTED ABOUT 1 BILLION IN RESOLUTION TRUST CORP PROPERTIES 9302260166 930226 WHO'S NEWS GRUBB & ELLIS CO GRUBB & ELLIS CO SAN FRANCISCO WILBERT SCHWARTZ 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS REAL ESTATE COMPANY MR SCHWARTZ WHO WAS MANAGING DIRECTOR OF PRUDENTIAL INVESTMENT CORP SUCCEEDED ALVIN SWANSON JR WHO WILL ACT AS AN ASSISTANT TO THE CHAIRMAN FOR AN INTERIM PERIOD THE COMPANY SAID 9302260165 930226 INTERNATIONAL LOUIS VUITTON TO ACQUIRE LACROIX COUTURE HOUSE A WALL STREET JOURNAL NEWS ROUNDUP BUT THE DEAL ONE OF A NUMBER OF RECENT MOVES IN PARIS'S TROUBLED HAUTE COUTURE BUSINESS IS ACTUALLY A TRANSFER OF OWNERSHIP BETWEEN QUASIRELATED COMPANIES VUITTON WILL PAY 80 MILLION FRANCS 145 MILLION TO AU BON MARCHE SA FOR LACROIX AU BON MARCHE PRIMARILY A DEPARTMENT STORE OPERATOR IS CONTROLLED BY LVMH CHAIRMAN BERNARD ARNAULT BY SELLING THE BUSINESS TO PUBLICLY LISTED LVMH WHICH HE CONTROLS MR ARNAULT IS TRANSFERRING SOME OF THE BURDEN AWAY FROM HIS PERSONAL INVESTMENTS AND TOWARD THE SHAREHOLDERS IN HIS BROADLY HELD LUXURY GROUP INDUSTRY ANALYSTS SAY CHRISTIAN LACROIX HAS FACED PROFITABILITY PROBLEMS DESPITE HIS HIGHLY PUBLICIZED DESIGNS MR LACROIX'S PERFUMES AND READYTOWEAR CLOTHING HAVEN'T DONE WELL FOR ITS PART LVMH SAID IT EXPECTS THE GROUPS TO PRODUCE STRONG SYNERGIES NOTABLY IN DISTRIBUTION AND INTRODUCTION OF NEW PRODUCTS 9302260164 930226 WHO'S NEWS SCHOUSTRA STEPS DOWN AS CHAIRMAN DIRECTOR OF EARTH TECHNOLOGY LONG BEACH CALIF JACK J SCHOUSTRA 62 YEARS OLD RETIRED AS CHAIRMAN AND A BOARD MEMBER OF EARTH TECHNOLOGY CORP KLAAS E TEN BROEKE A BOARD MEMBER WHO IS ALSO PRESIDENT OF TBX CORP WILL SERVE AS INTERIM CHAIRMAN UNTIL A NEW CHAIRMAN IS ELECTED AT THE BOARD MEETING NEXT MONTH MR TEN BROEKE IS 62 JAMES E CLARK 64 WILL FILL MR SCHOUSTRA'S SEAT ON THE BOARD MR CLARK SERVED AS PRESIDENT OF WESTERN OPERATIONS FOR PRUDENTIAL INSURANCE CO OF AMERICA FROM 1983 TO 1990 RICHARD J DADAMO 64 ALSO RESIGNED FROM THE BOARD HIS SEAT WILL BE FILLED BY CREIGHTON K EARLY 39 WHO IS CHIEF FINANCIAL OFFICER OF EARTH TECHNOLOGY MR SCHOUSTRA THIS WEEK ANNOUNCED THE SALE OF 500000 SHARES OF EARTH TECHNOLOGY 17 OF THE TOTAL OUTSTANDING TO INDIVIDUAL MANAGERS AND INVESTORS AT 6 A SHARE MR SHOUSTRA NOW HOLDS 210000 SHARES OF COMMON STOCK EARTH TECHNOLOGY IS AN ENVIRONMENTAL AND ENGINEERING CONSULTING FIRM 9302260163 930226 INTERNATIONAL SHELL AND PEMEX PLAN ALLIANCE HOUSTON SHELL OIL CO AND PETROLEOS MEXICANOS AGREED TO A JOINT VENTURE PROJECT IN WHICH PEMEX WOULD OWN 50 OF A SHELL REFINERY AND PARTICIPATE IN A 1 BILLION UPGRADE OF THE FACILITY UNDER THE AGREEMENT PEMEX WILL SELL SHELL 150000 BARRELS OF MAYA CRUDE A DAY AND SHELL A UNIT OF ROYAL DUTCH/SHELL GROUP WILL SELL AS MUCH AS 45000 BARRELS OF UNLEADED GASOLINE TO PEMEX THE REFINERY UPGRADE WILL PERMIT THE REFINERY LOCATED AT SHELL'S DEER PARK COMPLEX NEAR HOUSTON TO PROCESS HEAVY MAYA CRUDE OIL AND COMPLY WITH US CLEAN AIR ACT REQUIREMENTS TO PRODUCE REFORMULATED GASOLINE 9302260162 930226 INTERNATIONAL BANK OF ENGLAND CENSURED OVER SUPERVISION OF BCCI LONDON A PARLIAMENTARY COMMITTEE HARSHLY CRITICIZED THE BANK OF ENGLAND OVER ITS SUPERVISION OF THE BANK OF CREDIT & COMMERCE INTERNATIONAL AND RECOMMENDED THAT BCCI CUSTOMERS BE SPECIALLY COMPENSATED WE CONSIDER IT IS INCUMBENT ON THE BANK OF ENGLAND TO ACCEPT RESPONSIBILITY FOR ITS FAILURE AS THE REGULATORY SUPERVISOR OF BCCI THE ALLPARTY HOUSE OF COMMONS TREASURY AND CIVIL SERVICE SELECT COMMITTEE SAID IN A REPORT WE REGARD THE ABSENCE OF ANY DISCIPLINARY ACTION OF ANY KIND AGAINST ANY OF THE INDIVIDUALS INVOLVED AS UNDERMINING THE FUTURE EFFECTIVENESS OF THE BANK OF ENGLAND THE REPORT SAID THE COMMITTEE'S CRITICISM CAME AS IT CONCLUDED ITS FORMAL REVIEW OF AN INDEPENDENT REPORT ISSUED IN OCTOBER BY A SENIOR JUDGE SIR THOMAS BINGHAM THE BANK OF ENGLAND IN JULY 1991 ORDERED THE CLOSURE OF BCCI A UNIT OF BCCI HOLDINGS LUXEMBOURG SA AFTER ALLEGATIONS OF WIDESPREAD FRAUD OTHER NATIONAL REGULATORS FOLLOWED SUIT THE NONBINDING COMMITTEE REPORT SAID COMPENSATION TO BCCI DEPOSITORS ABOVE THAT ALREADY ALLOWED BY LAW SHOULD NOW BE MADE UNDER CURRENT UK PROTECTION PROVISIONS BANK DEPOSITORS CAN GET BACK 75 OF DEPOSITS UP TO A MAXIMUM OF 15000 21400 THE BANK OF ENGLAND SAID IN A STATEMENT THAT IT DOESN'T ACCEPT THE COMMITTEE'S CONCLUSIONS AND DOESN'T BELIEVE THERE IS ANY CASE FOR ADDITIONAL COMPENSATION 9302260161 930226 PFIZER SETS STOCK BUYBACK NEW YORK PFIZER INC SAID ITS BOARD APPROVED THE PURCHASE OF AS MANY AS 20 MILLION OF ITS SHARES IN OPENMARKET OR PRIVATELY NEGOTIATED TRANSACTIONS THE PURCHASES WILL BE MADE FROM TIME TO TIME OVER THE NEXT 24 MONTHS DEPENDING ON MARKET CONDITIONS PFIZER NOW HAS ABOUT 323 MILLION COMMON SHARES OUTSTANDING A PREVIOUS REPURCHASE PROGRAM FOR 10 MILLION SHARES THAT WAS AUTHORIZED LAST AUGUST HAS BEEN COMPLETED THE HEALTH CARE PRODUCTS COMPANY SAID THE PURCHASED STOCK WILL BE USED FOR ITS EMPLOYEE BENEFIT PROGRAMS AND OTHER GENERAL CORPORATE PURPOSES 9302260160 930226 FINANCING BUSINESS GNI GROUP INC GNI GROUP INC HOUSTON SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO AN OFFERING OF 16 MILLION COMMON SHARES THE ENVIRONMENTAL AND RECYCLING COMPANY SAID THE OFFERING TO BE MANAGED BY RAYMOND JAMES & ASSOCIATES INC WILL INCLUDE 11 MILLION PRIMARY SHARES AND 500000 SHARES OFFERED BY CERTAIN STOCKHOLDERS GNI SAID IT WILL USE THE PROCEEDS TO CONSTRUCT ADDITIONS TO ITS CHEMICAL RECOVERY FACILITY REDUCE DEBT AND FOR GENERAL CORPORATE PURPOSES AT FEB 1 THE COMPANY HAD 41 MILLION COMMON SHARES OUTSTANDING 9302260159 930226 FINANCING BUSINESS NFO RESEARCH INC NFO RESEARCH INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 14 MILLION COMMON SHARES AT 13 TO 15 EACH THE GREENWICH CONN COMPANY WHICH PROVIDES CUSTOM MARKET RESEARCH SERVICES SAID THAT ONE MILLION SHARES WILL BE OFFERED BY THE COMPANY AND 400000 BY SELLING SHAREHOLDERS THE COMPANY'S PROCEEDS WILL BE USED TO REPAY DEBT 9302260158 930226 RYLAND GROUP INC MODEL HOMES COLUMBIA MD RYLAND GROUP INC SAID A SUBSIDIARY WILL BUILD MODEL HOME VILLAGES IN SENEGAL AND TURKEY A SPOKESWOMAN ALSO SAID THE HOME BUILDING COMPANY EXPECTS TO ANNOUNCE SOON PLANS TO BUILD HOMES IN MEXICO GEARED TOWARD HIGHINCOME AND WORKINGCLASS RESIDENTS RYLAND TRADING LTD SAID THAT IN SENEGAL IT WILL BE THE GENERAL CONTRACTOR FOR THREE MODELS LEADING TO A PROJECT FOR 300 MODERATEINCOME HOMES TO BE SOLD BY THE GOVERNMENT IN TURKEY THE COMPANY SAID IT WILL PROVIDE FOUR MODEL HOMES FOR AN ISTANBUL CONSTRUCTION COMPANY AND MARKET THOSE HOMES TO CONSUMERS 9302260157 930226 JAPAN'S BIG RETAILERS POST SALES DECLINE OF 3 FOR JANUARY SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND OTHER LARGESIZED RETAIL STORES DECLINED 30 TO 1791 TRILLION YEN 1524 BILLION IN JANUARY FROM A YEAR EARLIER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THE DECLINE FOLLOWS A 57 DROP IN DECEMBER WHICH WAS THE LARGEST DECLINE SINCE MITI ADOPTED ITS CURRENT STATISTICAL METHOD IN JANUARY 1988 THE FIGURE ALSO FOLLOWS DROPS OF 32 IN NOVEMBER AND 26 IN OCTOBER WITH THE EXCEPTION OF A SLIGHT RISE IN MAY MITI'S STATISTICS SHOW THAT RETAIL SALES HAVE FALLEN SHORT OF YEAREARLIER LEVELS EACH MONTH SINCE LAST MARCH FOR ALL OF 1992 MITI PREVIOUSLY REPORTED JAPAN'S RETAIL SALES DECLINED 19 SWINGING INTO THE MINUS COLUMN FOR THE FIRST TIME SINCE THE CURRENT METHOD OF CALCULATION WAS INSTITUTED A MINISTRY OFFICIAL SAID IT IS PREMATURE TO CONCLUDE THAT RETAIL SALES HAVE STOPPED FALLING JUST BECAUSE THE PACE OF DECLINE IN RETAIL SALES FOR JANUARY WAS LESS SHARP THAN FOR DECEMBER HE SAID SALES DIDN'T GROW AT THE YEAREND GIFT SEASON AS CORPORATE CLIENTS SPENT LESS AMID THE ECONOMY'S SLUMP DEEPENING THE PACE OF DECLINE IN DECEMBER JANUARY'S TEMPO OF DECLINE BETTER REFLECTS THE CAUTIOUSNESS OF THE HOUSEHOLD SECTOR THAN DECEMBER'S FALL HE SAID THE OFFICIAL SAID THERE'S STILL A NEED FOR CONCERN THAT THE PACE OF FALL WILL DEEPEN FURTHER GIVEN THE SLUGGISHNESS OF PERSONAL CONSUMPTION PERSONAL CONSUMPTION ACCOUNTS FOR NEARLY 60 OF JAPAN'S GROSS NATIONAL PRODUCT 9302260156 930226 UNITED WASTE SYSTEMS CREDIT GREENWICH CONN UNITED WASTE SYSTEMS INC SAID IT RECEIVED A 25 MILLION THREEYEAR REVOLVING CREDIT LINE FROM CONTINENTAL BANK TO BE USED FOR DEBT PAYMENT AND FUTURE ACQUISITIONS THE SOLID WASTE MANAGEMENT SERVICE ALSO COMPLETED THE ACQUISITION OF BLASKO GARBAGE COLLECTION INC A WASTE COLLECTION COMPANY UNITED WASTE ALSO SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE A WASTE COLLECTION COMPANY IN ANOTHER OF ITS EXISTING MARKETS THE COMPANY SAID IT WILL DISCLOSE MORE INFORMATION ONCE A DEFINITIVE AGREEMENT IS REACHED 9302260155 930226 SAS TO BOOST BALTIC SERVICE STOCKHOLM SCANDINAVIAN AIRLINES SYSTEM SAID IT WILL BOOST SERVICE THIS SUMMER TO 52 FLIGHTS A WEEK TO THE BALTIC REPUBLICS AND SOVIET SUCCESSOR STATES IN THE REGION SINCE 1992 SAS HAS OFFERED 38 FLIGHTS A WEEK TO THE REGION COMPARED WITH 11 A WEEK IN 1991 WITH 11 ROUNDTRIP FLIGHTS TO ST PETERSBURG UP FROM THE CURRENT SEVEN SAS WILL HAVE MORE SERVICE TO THE RUSSIAN CITY THAN ANY OTHER FOREIGN AIRLINE IT SAID THE AIRLINE'S TOTAL BALTIC HUB OPERATIONS LINKING NEIGHBORING BALTIC BASIN AND OTHER EAST EUROPEAN POINTS WITH THE MAIN SAS HUB AT COPENHAGEN WILL BE INCREASED TO 247 FLIGHTS A WEEK 39 MORE THAN IN 1992 AND DOUBLE THE 1991 TOTAL IT SAID 9302260154 930226 FINANCING BUSINESS STORAGE TECHNOLOGY CORP STORAGE TECHNOLOGY CORP SAID IT IS INCREASING ITS PROPOSED OFFERING OF CONVERTIBLE PREFERRED STOCK TO THREE MILLION SHARES FROM 25 MILLION A SPOKESMAN FOR SALOMON BROTHERS LEAD MANAGER FOR THE OFFERING CITED HIGH DEMAND FOR THE INCREASE WHICH BOOSTS THE EXPECTED PROCEEDS OF THE OFFERING TO 150 MILLION FROM 125 MILLION THE SPOKESMAN SAID THE OFFERING WAS THREE TIMES OVERSUBSCRIBED BY PROSPECTIVE INVESTORS THE LOUISVILLE COLO COMPANY PLANS TO USE THE PROCEEDS FOR WORKING CAPITAL CAPITAL EXPENDITURES ASSOCIATED WITH THE DEVELOPMENT AND INTRODUCTION OF NEW PRODUCTS AND FOR OTHER GENERAL CORPORATE PURPOSES THE COMPANY MAKES INFORMATION STORAGE SYSTEMS FOR COMPUTERS 9302260153 930226 NATURE FOOD SAYS IT EXPECTS TO POST INCREASE IN PROFIT BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL NATURE FOOD CENTRES INC CITING NEW STORE OPENINGS SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME INCREASED 10 TO 27 TO 850000 TO 975000 OR 17 CENTS TO 19 CENTS A SHARE IN THE YEARAGO QUARTER THE RETAILER HAD NET OF 770000 OR 16 CENTS A SHARE NATURE FOOD CENTRES OPENED 23 STORES IN 1992 AND TWO IN 1993 INCREASING THE CHAIN SIZE TO 113 STORES NATIONWIDE RONALD ROSSETTI PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT BECAUSE OF THE OPENINGS HE EXPECTS TO REPORT THAT SALES FOR THE QUARTER ROSE 27 TO 177 MILLION FROM 139 MILLION IN THE YEARAGO PERIOD WE'RE FINALLY STARTING TO SEE THE EFFECT OF BACKTOBACK STORE OPENINGS MR ROSSETTI SAID NATURE FOOD CENTRES BASED IN WILMINGTON MASS SELLS VITAMIN AND MINERAL SUPPLEMENTS AS WELL AS BODYBUILDING WEIGHTLOSS AND OTHER NUTRITION PRODUCTS AND SPECIALTY FOODS THE CONCERN IS GRADUALLY EXPANDING FROM ITS NORTHEAST BASE OF DOWNTOWN AND SUBURBAN MALL LOCATIONS IT OPENED THREE STORES IN UPSTATE NEW YORK DURING THE FOURTH QUARTER AND PLANS TO OPEN AN ADDITIONAL 10 UNITS THERE BY JUNE RECENTLY THE COMPANY ANNOUNCED AN AGREEMENT TO ACQUIRE NUTRITION WORLD A 38STORE VITAMIN RETAILER THAT IS A UNIT OF CLOSELY HELD SAGE ENTERPRISES INC OF CHICAGO MR ROSSETTI SAID NATURE FOOD CENTRES PLANS TO OPERATE 26 OF THE NUTRITION WORLD STORES WHICH ARE LOCATED IN SIX MIDWEST STATES AND TO CLOSE THE REMAINING 12 STORES IN ADDITION THE COMPANY WILL OPEN ABOUT 30 NATURE FOOD CENTRES STORES NATIONWIDE IN 1993 ENDING THE YEAR WITH ABOUT 175 STORES TODAY IN BOSTON WE'D BE HARDPRESSED TO FIND ANOTHER LOCATION THAT WON'T CANNIBALIZE WHERE WE ARE SAID MR ROSSETTI THE MIDWEST IS A LOGICAL SECOND MARKET EVENTUALLY MR ROSSETTI SAID THE COMPANY PLANS TO CONNECT ITS NORTHEAST AND MIDWEST MARKETS FOR 1992 NATURE FOOD CENTRES EXPECTS TO REPORT NET OF 29 MILLION TO 3 MILLION OR 58 CENTS TO 61 CENTS A SHARE FOR 1991 THE COMPANY POSTED NET OF 25 MILLION OR 51 CENTS A SHARE SALES FOR 1992 ARE EXPECTED TO BE 652 MILLION COMPARED WITH 543 MILLION IN 1991 MR ROSSETTI SAID SAMESTORE SALES FOR 1992 INCREASED 89 THE RESULTS FOR 1991 ARE PRO FORMA REFLECTING THE RETAILER'S MERGER IN MARCH 1992 WITH THE REVERE FUND INC FORMERLY A BUSINESS DEVELOPMENT COMPANY NATURE FOOD CENTRES SAID THE GROWING POPULATION OF OLDER CITIZENS NEEDING NUTRITIONAL SUPPLEMENTS IS HELPING TO DRIVE THE BUSINESS AS IS THE CONTINUED POPULARITY OF SUPPLEMENTS FOR COSMETIC APPEARANCE SUCH AS ENERGY POWDER FOR WEIGHT LIFTERS' ENDURANCE AND PROTEIN SUPPLEMENTS FOR DIETERS THIS IS NOT A FADDISH' BUSINESS SAID MR ROSSETTI HEALTH FOOD IS POPULAR AND THE INTEREST IN NUTRITION AND DIET IS GROWING STEADILY 9302260152 930226 CALPERS LOOKS TO INCREASE STOCK PORTFOLIO BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA'S 73 BILLION PUBLIC PENSION FUND IS WEIGHING A PLAN TO POUR 35 BILLION INTO THE US STOCK MARKET IN COMING MONTHS DALE HANSON HEAD OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM WHICH IS CURRENTLY THE NATION'S LARGEST PUBLIC FUND SAID HE WANTS CALPERS TO DEVOTE MORE OF ITS INVESTMENT PORTFOLIO TO STOCKS CURRENTLY 31 OF THE CALIFORNIA PENSION FUND OR 23 BILLION IS INVESTED IN US STOCKS THE ADDITIONAL STOCK PURCHASES WHICH WOULD BRING THAT TOTAL TO ABOUT 36 WOULD BE MADE OVER THE NEXT SIX MONTHS IF CALPERS GOES AHEAD WITH THE PLAN MR HANSON SAID AT THE SAME TIME CALPERS IS ALSO CONSIDERING SETTING ASIDE PART OF A SPECIAL 1 BILLION TO 15 BILLION PORTFOLIO TO BUY LARGE STAKES IN UNDERPERFORMING COMPANIES MR HANSON SAID THE PENSION FUND WOULD THEN USE ITS LARGER HOLDINGS AS LEVERAGE TO PRESSURE THE COMPANIES FOR IMPROVEMENTS IN THEIR FINANCIAL PERFORMANCE CALPERS OFFICIALS WILL BE DISCUSSING BOTH PROPOSALS WITH THE FUND'S BOARD NEXT WEEK MR HANSON SAID THE CALPERS PROPOSAL TO INCREASE ITS STOCK HOLDINGS IS PART OF A RECENT TREND AMONG BIG PENSION FUNDS THAT COULD GIVE A BOOST TO THE STOCK MARKET IN A JANUARY SURVEY OF 250 OF THE LARGEST PENSION FUNDS BY CONSULTANT CALLAN ASSOCIATES INC FUND MANAGERS SAID THEY PLAN TO INCREASE THEIR US STOCK PORTFOLIOS BY AN AVERAGE OF 2 TO 3 THIS YEAR THE FUND MANAGERS SAID THEY PLAN TO REDUCE THE SIZE OF THEIR BOND PORTFOLIOS SINCE MANY BELIEVE INTEREST RATES WON'T DROP MUCH FURTHER THEY PLAN TO INVEST THE PROCEEDS FROM THOSE SALES IN THE STOCK MARKET WHERE MANAGERS BELIEVE LONGTERM RETURNS WILL BE BETTER SAID RONALD PEYTON CALLAN'S PRESIDENT THOUGH THE PLANNED 2 TO 3 INCREASE IN FUND STOCK HOLDINGS SOUNDS LIKE A SMALL PERCENTAGE WHEN YOU'RE TALKING ABOUT 4 TRILLION IN PENSION ASSETS IT'S A LOT OF SUPPORT FOR THE STOCK MARKET MR CALLAN SAID IT'S A STRONG BULLISH SIGN CALPERS'S PROPOSAL TO BUY LARGER STAKES IN COMPANIES IS PART OF THE BIG FUND'S EFFORTS TO FORCE CHANGES AT POORLY PERFORMING COMPANIES IN WHICH IT HOLDS STOCK IN RECENT MONTHS CALPERS AND A HANDFUL OF OTHER ACTIVIST INSTITUTIONAL INVESTORS HAVE PLAYED A ROLE IN MANAGEMENT UPHEAVALS AT SOME OF THE NATION'S LARGEST CORPORATIONS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP GENERAL MOTORS CORP AND WESTINGHOUSE ELECTRIC CORP BY TAKING LARGER STAKES IN COMPANIES CALPERS HOPES TO HAVE EVEN MORE LEVERAGE OVER MANAGEMENT MR HANSON SAID HE COMPARED THE PROPOSED PLAN WITH THE STRATEGY OF WELLKNOWN INVESTOR WARREN BUFFETT WHO OFTEN BUYS LARGE HOLDINGS IN COMPANIES THAT HAVE RUN AGROUND BUT THAT HE CONSIDERS TO BE RUN BY GOOD MANAGERS UNLIKE MR BUFFETT'S INVESTMENTS HOWEVER CALPERS'S STAKES IN INDIVIDUAL COMPANIES WOULD STILL BE RELATIVELY SMALL SICE IT PLANS TO DEVOTE LESS THAN 1 BILLION TO THE EFFORT MOREOVER IT ISN'T CLEAR WHETHER CALPERS HAS THE STOCKPICKING EXPERTISE TO MAKE THE STRATEGY PAY OFF LIKE MANY PENSION FUNDS CALPERS CURRENTLY INDEXES MOST OF ITS US STOCK PORTFOLIO THIS STRATEGY INVOLVES BUYING A BASKET OF STOCKS THAT CLOSELY MATCHES A MARKET BENCHMARK SUCH AS STANDARD & POOR'S 500STOCK INDEX WHILE THIS ALLOWS THE FUND TO MIRROR THE MARKET'S PERFORMANCE IT REQUIRES IT TO OWN RELATIVELY SMALL STAKES IN HUNDREDS OF COMPANIES WHILE CALPERS WOULD STILL INDEX THE MAJORITY OF ITS US STOCK PORTFOLIO THE PLAN WOULD ALLOW IT TO USE ITS OWN INVESTMENT STAFF TO ACTIVELY MANAGE AS MUCH AS 5 OF THAT MONEY PART OF THE PORTFOLIO WOULD BE INVESTED IN UNDERPERFORMING COMPANIES MR HANSON SAID THE PLAN MIGHT ALSO ALLOW CALPERS TO REDUCE ITS NUMBER OF OUTSIDE MONEY MANAGERS HE SAID MR HANSON SAID RECENT STUDIES BY CALPERS HAVE SHOWN THAT ITS CAMPAIGN FOR CHANGES AT POORLY PERFORMING CORPORATIONS WOULD YIELD BETTER RETURNS IF IT HELD LARGER STAKES IN THOSE COMPANIES CALPERS IS ALSO CONSIDERING INVESTING IN A FUND MANAGED BY OUTSIDERS THAT WOULD TARGET INVESTMENTS IN POORLY PERFORMING COMPANIES 9302260151 930226 DIVIDEND NEWS OWENS & MINOR INC OWENS & MINOR INC A RICHMOND VA WHOLESALE DISTRIBUTOR OF PHARMACEUTICALS AND MEDICAL SUPPLIES DECLARED A 3FOR2 STOCK SPLIT AND RAISED THE STOCK DIVIDEND 21 ON POSTSPLIT COMMON SHARES TO 525 CENTS FROM 43 CENTS THE SPLIT WILL BE DISTRIBUTED MARCH 22 AND THE DIVIDEND WILL BE PAID MARCH 31 BOTH TO SHARES OF RECORD MARCH 8 THE SPLIT INCREASES THE COMPANY'S COMMON SHARES OUTSTANDING TO ABOUT 197 MILLION 9302260150 930226 JAPAN'S EXPORTS OF VEHICLES FELL 26 IN JANUARY SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES FELL 26 TO 531349 UNITS IN JANUARY FROM THE YEAR BEFORE THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID THE PACE OF DECLINE IMPROVED FROM DROPS OF 13 IN DECEMBER AND 12 IN NOVEMBER THE YEAREND CURTAILMENT OF EXPORTS TO EUROPE TO MEET A VOLUNTARY EXPORT RESTRAINT AGREEMENT WAS LIFTED WITH THE START OF THE NEW YEAR AN ASSOCIATION SPOKESMAN SAID EXPORTS TO THE EUROPEAN COMMUNITY WHICH PLUNGED 53 IN DECEMBER FROM A YEAR AGO JUMPED 22 IN JANUARY TO 206824 UNITS OR 39 OF OVERALL EXPORTS FOR THE MONTH THE SPOKESMAN SAID THE 18 FALL OF EXPORTS TO THE US FROM A YEAR AGO TO 132834 UNITS MARKED AN IMPROVEMENT FROM THE DECLINES OF PREVIOUS MONTHS BUT EXPORTS TO THE MIDDLE EAST PLUNGED 32 TO 34011 UNITS AS DEMAND FOR RECONSTRUCTION FOLLOWING THE GULF WAR HAS FALLEN OFF SHIPMENTS TO ASIA REMAIN STRONG RISING 30 TO 51812 UNITS DURING JANUARY EXPORTS TO GERMANY JUMPED 29 TO 88771 UNITS THE ASSOCIATION SPOKESMAN SAID THE RECENT SURGE IN THE YEN'S VALUE IN FOREIGN EXCHANGE MARKETS IS UNLIKELY TO HAVE AN IMMEDIATE IMPACT ON EXPORT VOLUMES BUT IF A STRONG YEN PERSISTS SOME EFFECT IS INEVITABLE AND THE RESPONSE OF JAPANESE CAR MAKERS IN TERMS OF POSSIBLE PRICE INCREASES MUST BE WATCHED HE SAID THE DOLLAR IS CURRENTLY TRADING AROUND 11750 YEN UP FROM THE HISTORIC LOW OF 11594 YEN POSTED LATE MONDAY BUT WELL BELOW THE 124 YEN LEVEL THAT PREVAILED JUST OVER TWO WEEKS AGO FOR JANUARY PASSENGER CAR EXPORTS CAME TO 440094 UNITS EDGING DOWN 06 FROM A YEAR AGO MIDSIZE CAR EXPORTS DROPPED 10 TO 120074 UNITS BUT COMPACT CAR EXPORTS CLIMBED 3 TO 318306 UNITS IN TERMS OF VALUE THOSE EXPORTS AMOUNTED TO 489 BILLION UP 43 FROM A YEAR AGO TRUCK EXPORTS DROPPED 14 TO 85333 UNITS IN VALUE TERMS THOSE EXPORTS EDGED DOWN 27 TO 91971 MILLION BUS EXPORTS JUMPED 36 FROM THE YEAR BEFORE TO 5922 UNITS IN VALUE TERMS THOSE EXPORTS CAME TO 9270 MILLION UP 38 FROM THE YEAR BEFORE BY COMPANY TOYOTA MOTOR CORP JAPAN'S TOP VEHICLE MAKER EXPORTED 161772 UNITS IN JANUARY 32 LESS THAN A YEAR AGO BUT NISSAN MOTOR CO THE SECOND BIGGEST VEHICLE MAKER SAW ITS EXPORTS PLUNGE 24 FROM A YEAR AGO TO 58304 UNITS NISSAN TUESDAY ANNOUNCED A RESTRUCTURING PLAN AND FORECAST A 29 BILLIONYEN 2468 MILLION PRETAX LOSS FOR THE CURRENT FISCAL YEAR THROUGH MARCH MAZDA MOTOR CORP'S EXPORTS EDGED UP 09 FROM A YEAR AGO TO 87600 UNITS MITSUBISHI MOTORS CORP EXPORTS FELL 11 TO 62437 UNITS HONDA MOTOR CO'S EXPORTS JUMPED 16 TO 72326 UNITS ISUZU MOTORS LTD EXPORTS DROPPED 20 TO 23200 UNITS DAIHATSU MOTOR CO'S EXPORTS DROPPED 53 TO 17953 UNITS 9302260149 930226 LEISURE & ARTS BOOKSHELF THE WOMAN WHO MADE THE WASHINGTON POST BY GERALDINE BROOKS FOR THE FIRST HALF OF POWER PRIVILEGE AND THE POST THE KATHARINE GRAHAM STORY PUTNAM 511 PAGES 2995 CAROL FELSENTHAL'S TASK IS A BIT LIKE THAT OF A PHYSICIST IN SEARCH OF AN INVISIBLE SUBATOMIC PARTICLE FORCED TO DEDUCE ITS EXISTENCE BY THE MOVEMENTS OF THE LARGER BODIES IN ITS NEIGHBORHOOD MS GRAHAM LIVED THE FIRST HALF OF HER LIFE COMPLETELY OVERSHADOWED BY THE POWERFUL FIGURES AROUND HER EUGENE MEYER HER RICH AND BRILLIANT FATHER AGNES HER DOMINEERING MOTHER AND PHIL GRAHAM HER TALENTED AND MENTALLY UNSTABLE HUSBAND MS FELSENTHAL DOES A GREAT JOB OF CONJURING UP THESE CHARACTERS IN ALL THEIR COMPLEXITY BUT KAY GRAHAM WHO DECLINED TO BE INTERVIEWED BY MS FELSENTHAL REMAINS AN ENIGMA WHEN SHE SUDDENLY EMERGES TO TAKE CHARGE OF THE WASHINGTON POST AFTER HER HUSBAND'S SHOTGUN SUICIDE WE ARE 224 PAGES INTO THE BOOK AND WE HARDLY KNOW HER AS A CHILD A STUDENT AT VASSAR COLLEGE AND THE UNIVERSITY OF CHICAGO A CUB REPORTER AND A SOCIETY WIFE MS GRAHAM WAS SO UNASSUMING AND SO PERENNIALLY UNDERRATED THAT SHE SEEMS TO HAVE LEFT LITTLE IMPRESSION ON THOSE WHO CROSSED HER PATH EVEN THE REMINISCENCES OF HER SISTER WHO DID COOPERATE WITH MS FELSENTHAL ARE BANAL AND UNREVEALING WHAT WE GET IN PARTIAL COMPENSATION IS A DETAILED PORTRAIT OF A MILIEU MS FELSENTHAL TAKES US INSIDE THE HUGE HOUSES IN WASHINGTON DC AND WESTCHESTER COUNTY NY PAID FOR BY EUGENE MEYER'S BRILLIANCE AS A BANKER AND VISITED BY THE POWERFUL FIGURES HE ATTRACTED AS A SUCCESSFUL PRESIDENTIAL ADVISER ALWAYS THE ATMOSPHERE IS DOMINATED BY THE PERENNIALLY SELFINVOLVED AGNES WHO WAS MORE INTERESTED IN THE STARVING MASSES AND THE LATEST INTELLECTUAL LUMINARY THAN IN HER OWN SHY DAUGHTER THERE ARE GLIMPSES OF KAY'S SAD AND LONELY LIFE AMID ALL THIS SPLENDOR WHEN SHE GRADUATED FROM CHICAGO NEITHER PARENT SHOWED UP HER MOTHER HAD A SECRETARY SEND A NOTE OF CONGRATULATION THAT HAD KATHARINE MISSPELLED MS FELSENTHAL ISN'T ABLE TO SHOW US WHAT IT WAS IN KAY THAT CONVINCED HER FATHER THAT SHE AMONG HIS FIVE CHILDREN WAS THE ONE WHO SHOULD INHERIT THE POST OR WHAT IT WAS THAT INSTANTLY ATTRACTED PHIL GRAHAM SUPPOSEDLY THE MOST PROMISING MAN OF HIS GENERATION MS FELSENTHAL SPECULATES THAT EUGENE CHOSE KAY BY DEFAULT BECAUSE SHE WAS THE ONLY ONE OF HIS CHILDREN WITH A JOURNALISTIC BENT HOPING SHE'D MARRY SOMEONE WHO COULD RUN THE SHOW PHIL'S ATTRACTION TO KAY MS FELSENTHAL HINTS WAS THE MEYER FORTUNE BUT THIS IS UNCONVINCING PHIL GRAHAM COULD PROBABLY HAVE MARRIED ANY OF A DOZEN HEIRESSES AND THE POST AT THAT TIME WASN'T ENOUGH OF A NEWSPAPER TO EXERT AN IRRESISTIBLE TUG ON THE BRIGHT YOUNG LAWYER WHO THOUGHT HE COULD BE PRESIDENT THE POST WAS IN FACT A DISASTER WHEN EUGENE MEYER BOUGHT IT IN 1933 THE PAPER WAS BANKRUPT AND VIRTUALLY DISINTEGRATING IT IS ALMOST UNIMAGINABLE NOW WHEN THE POST WIELDS WORLDWIDE INFLUENCE TO RECALL THE NOTSODISTANT DAYS WHEN IT DIDN'T HAVE ONE FOREIGN CORRESPONDENT AND BARELY COVERED POLITICS PUMPING IN CASH HE REPAIRED THE EDITORIAL PAGE IN A PLAY FOR WASHINGTON INFLUENCE BUT BARELY MADE A MARK ON THE NEWS PAGES PHIL GRAHAM EVEN MORE OBSESSED WITH POLITICAL CLOUT WANTED TO TURN THE POST INTO A POWERFUL PAPER BUT NOT NECESSARILY A GREAT ONE UNTIL HIS SUICIDE IN 1963 HE USED THE PAPER TO PUSH HIS OWN AGENDA AND TO FURTHER THE INTERESTS OF FRIENDS SUCH AS JOHN F KENNEDY IT WAS KAY THE TIMID WIDOW SO SHY SHE USED TO REHEARSE SAYING MERRY CHRISTMAS BEFORE HER OWN PARTIES WHO OVERSAW THE PAPER'S RISE TO EXCELLENCE STILL MS GRAHAM'S STORY IS NO FAIRYTALE THIS CINDERELLA HAD NO SOONER DISCOVERED THAT THE SLIPPER FIT THAN SHE WAS TAKING OFF HER SHOE AND HURLING IT ACROSS THE NEWSROOM AT A JOURNALIST WHO HAD DISPLEASED HER SHE TURNED OUT TO BE A GUTSY PUBLISHER WHO RISKED THE COMPANY TO PRINT THE PENTAGON PAPERS AND BACKED HER REPORTERS THROUGH WATERGATE BUT SHE ALSO BECAME A SOMETIMES CRUEL BOSS WHO RELISHED HER REPUTATION AS A UNIONBUSTER AND TOO OFTEN REWARDED LOYAL EXECUTIVES WITH SUDDEN AND TACTLESS FIRINGS MS FELSENTHAL IS STRONG ON THE EXCRUCIATING DETAILS OF PHIL GRAHAM'S FLAGRANT EXTRAMARITAL AFFAIR AND DESCENT INTO MADNESS BUT IS EXTREMELY WEAK ON KAY GRAHAM'S PRIVATE LIFE AFTER THE SUICIDE THERE IS A HINT OF A MORETHANBUSINESS RELATIONSHIP WITH HER KEY ADVISER WARREN BUFFETT BUT VERY LITTLE SENSE OF WHAT MS GRAHAM IS LIKE AS A MOTHER A FRIEND OR EVEN AS A DINNERPARTY HOSTESS MS FELSENTHAL GIVES MUCH MORE DETAIL ABOUT LIFE IN THE POST'S EXECUTIVE OFFICES ON 15TH STREET THAN IN MS GRAHAM'S HOME ON R STREET THE RESULT IS MORE BUSINESS HISTORY THAN BIOGRAPHY MS FELSENTHAL HAS WRITTEN A COMPREHENSIVE AND OFTEN GRIPPING ACCOUNT OF THE GROWTH OF A GREAT PUBLISHING COMPANY BUT THE KATHARINE GRAHAM STORY REMAINS ONLY PARTIALLY TOLD MS BROOKS IS A CORRESPONDENT IN THE JOURNAL'S LONDON BUREAU 9302260148 930226 MARIANNE SMYTHE SEC FUND REGULATOR TO QUIT FOR LAW FIRM WASHINGTON MARIANNE SMYTHE THE TOP REGULATOR OF MUTUAL FUNDS AND INVESTMENT ADVISERS AT THE SECURITIES AND EXCHANGE COMMISSION SAID SHE WILL RESIGN IN EARLY MAY TO JOIN A LAW FIRM MRS SMYTHE HAS BEEN DIRECTOR OF THE SEC'S INVESTMENTMANAGEMENT DIVISION SINCE HER APPOINTMENT IN 1990 BY SEC CHAIRMAN RICHARD BREEDEN SHE PREVIOUSLY SERVED AS MR BREEDEN'S EXECUTIVE ASSISTANT AND AS AN ASSOCIATE DIRECTOR OF THE INVESTMENTMANAGEMENT DIVISION THE SEC CHIEF HAS SAID HE WILL LEAVE THE AGENCY BY APRIL 15 HOWEVER MRS SMYTHE SAID HER DEPARTURE IS UNRELATED TO THE ADMINISTRATION CHANGE AT EITHER THE SEC OR THE WHITE HOUSE SHE WILL BECOME A PARTNER AT WILMER CUTLER & PICKERING A WASHINGTON FIRM I LEAVE THE COMMISSION WITH MANY MANY REGRETS SHE SAID BUT I WORKED FOR WILMER CUTLER MANY YEARS AGO THEY ARE A SUPERB LAW FIRM DURING HER TENURE AS DIRECTOR OF THE INVESTMENTMANAGEMENT DIVISION MRS SMYTHE OVERSAW COMPLETION OF A BROAD STUDY THAT IS SERVING AS A BLUEPRINT FOR CHANGES TO THE 50YEAROLD STATUTE GOVERNING THE MUTUALFUND INDUSTRY AT THE SAME TIME MRS SMYTHE'S DIVISION WITNESSED THE SHARP EXPANSION OF THE MUTUALFUND AND INVESTMENTADVISER INDUSTRY AND HELPED PASS RULES TO REIN IN THE FAST GROWTH NEVERTHELESS I THINK THE INDUSTRY GENERALLY WOULD GIVE HER HIGH MARKS SAID MATTHEW FINK PRESIDENT OF THE INVESTMENT COMPANY INSTITUTE WHICH REPRESENTS 3400 MUTUAL FUNDS SHE HAS BEEN A VERY FIRM REGULATOR BUT HAS HAD A COMMONSENSE APPROACH MRS SMYTHE'S ANNOUNCEMENT CAME ON THE HEELS OF SEVERAL OTHER RESIGNATIONS BY TOP SEC OFFICIALS JAMES DOTY THE AGENCY'S GENERAL COUNSEL LEFT EARLIER THIS YEAR TO RETURN TO PRIVATE LAW PRACTICE AND WILLIAM HEYMAN DIRECTOR OF THE MARKETREGULATION DIVISION PLANS TO LEAVE MARCH 18 9302260147 930226 ECONOMY CLINTON ECONOMIC INITIATIVES STRENGTHEN US POSITION AS G7 PREPARES TO MEET BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US HAS A GREATLY STRENGTHENED HAND AS TREASURY SECRETARY LLOYD BENTSEN HEADS TO LONDON FOR TOMORROW'S MEETING OF FINANCE MINISTERS AND CENTRAL BANKERS FROM THE SEVEN LARGEST INDUSTRIALIZED NATIONS IN HIS FIRST MEETING WITH HIS COUNTERPARTS FROM THE OTHER GROUP OF SEVEN NATIONS MR BENTSEN IS ALMOST CERTAIN TO ARGUE THAT THE US IS FINALLY DOING WHAT ITS ALLIES HAVE DEMANDED RAISING TAXES TO SHRINK ITS BUDGET DEFICIT HELPING TO REDUCE PRESSURE ON WORLD INTEREST RATES AND EASE INFLATIONARY FEARS IN EXCHANGE THE US IS LIKELY TO ARGUE THE JAPANESE AND GERMANS SHOULD DO THEIR PART TO ENHANCE THE PROSPECTS FOR WORLD ECONOMIC GROWTH FROM JAPAN THE US WANTS STEPPEDUP GOVERNMENT SPENDING TO STIMULATE ITS ECONOMY AND FROM GERMANY IT WANTS LOWER INTEREST RATES FROM THE BUNDESBANK WHICH WOULD PROBABLY REQUIRE SOME FISCAL BELTTIGHTENING BY THE GERMAN GOVERNMENT AS I'VE TALKED TO FINANCE MINISTERS FROM OTHER PARTS OF THE WORLD THEY ARE IMPRESSED WITH WHAT WE HAVE DONE MR BENTSEN TOLD A CONGRESSIONAL HEARING THIS WEEK I BELIEVE THAT PUTS US IN A STRONGER LEADERSHIP ROLE WHEN WE GET TO DEAL WITH THESE OTHER COUNTRIES AND TRYING TO DEVELOP SUSTAINED GROWTH IN OTHER MARKETS THAT WILL BE BUYING OUR PRODUCTS ROBERT HORMATS A CLINTON BACKER WHO IS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL SAYS MR BENTSEN GOES TO LONDON IN THE STRONGEST POSITION OF ANY US TREASURY SECRETARY IN A G7 MEETING FOR A DECADE NOT ONLY HAS PRESIDENT CLINTON OUTLINED A DEFICITREDUCTION PLAN THAT APPEARS TO HAVE IMPRESSED FINANCIAL MARKETS MR HORMATS ARGUES BUT THE ADMINISTRATION'S WILLINGNESS TO CONSIDER INDUSTRIAL POLICY AND TOUGHER TRADE MEASURES ALSO IS LIKELY TO GIVE THE US MORE CLOUT ON SUCH PRICKLY ISSUES AS EUROPEAN SUBSIDIES OF THE AIRBUS INDUSTRIE AIRCRAFT CONSORTIUM STILL OFFICIALS FROM G7 GOVERNMENTS DON'T EXPECT ANYTHING DRAMATIC FROM THE BRIEF SATURDAY MORNING MEETING WHICH HAS BEEN BILLED AS AN INFORMAL GETACQUAINTED SESSION FOR MR BENTSEN AND NEW JAPANESE FINANCE MINISTER YOSHIRO HAYASHI BESIDES WORLD ECONOMIC GROWTH THE DISCUSSIONS ARE LIKELY TO FOCUS ON WAYS FOR THE WEST TO SUPPORT RUSSIA'S ECONOMIC CHANGES A BRIEF JOINT NEWS CONFERENCE BUT NO FORMAL WRITTEN COMMUNIQUE IS EXPECTED THE G7 COUNTRIES ARE BRITAIN CANADA FRANCE GERMANY ITALY JAPAN AND THE US WITH FOREIGNERS STILL UNCERTAIN ABOUT THE CLINTON ADMINISTRATION'S TRADE POSTURE A US TREASURY OFFICIAL SPEAKING ON CONDITION THAT HE NOT BE IDENTIFIED SAID MR BENTSEN WILL EMPHASIZE MR CLINTON'S INTERNATIONALIST VISION AND HIS COMMITMENT TO AN AMERICAN APPROACH OF SEEKING TO COMPETE MORE EFFECTIVELY RATHER THAN TO WALL OFF FOREIGN COMPETITORS THE JAPANESE ARE LIKELY TO BE THE TARGET OF SOME ARMTWISTING IT'S THE ONLY G7 COUNTRY THAT CAN AFFORD TO WIDEN ITS BUDGET DEFICIT TO SPUR WORLD GROWTH THEY HAVE A HISTORICALLY HIGHER SURPLUS IN THE BALANCE OF PAYMENTS AND BUDGET WHICH GIVES THEM A GREAT MARGIN OF MANEUVER HENNING CHRISTOPHERSON THE EUROPEAN COMMUNITY'S ECONOMICS CHIEF SAID LAST WEEK BUT SOME WESTERN OFFICIALS DON'T EXPECT MUCH ACTION FROM THE JAPANESE UNTIL JUST BEFORE THE PLANNED SUMMIT OF G7 HEADS OF STATE IN JAPAN IN JULY THE VALUE OF THE YEN IS A CLEAR SOURCE OF TENSION AMONG THE G7 PARTICULARLY BETWEEN THE US AND JAPAN WITH THE JAPANESE TRADE SURPLUS SWELLING AGAIN THE US PREFERS A STRONGER YEN WHICH TENDS TO MAKE JAPANESE GOODS LESS ATTRACTIVE IN OTHER COUNTRIES AND HELPS US EXPORTS BUT THE JAPANESE WORRIED ABOUT THEIR OWN RECESSION ARE DETERMINED TO KEEP THE YEN FROM RISING TOO FAST FOR FEAR IT WILL DAMAGE THEIR IMPORTANT EXPORT BUSINESS AFTER MR BENTSEN MADE AN OFFTHECUFF REMARK LAST WEEK THAT HE WOULD LIKE TO SEE A STRONGER YEN THE YEN SHOT UP TO POSTWAR HIGHS IT CLOSED UNCHANGED YESTERDAY AT 11748 AGAINST THE DOLLAR IN LATE NEW YORK TRADING AND IS NOW ABOUT 7 HIGHER THAN IT WAS AT THE BEGINNING OF FEBRUARY ALTHOUGH MR BENTSEN DIDN'T INTEND TO MAKE SUCH A SPLASH HE CLEARLY WASN'T UNHAPPY WITH THE RESULTS TOP JAPANESE OFFICIALS HOWEVER WERE ANNOYED PRIVATELY SAYING THAT THE COMMENTS MUST HAVE BEEN HALF IN JEST THERE ISN'T ANY INDICATION THAT THE US OR OTHER GOVERNMENTS HAVE BEEN INTERVENING IN CURRENCY MARKETS TO PUSH UP THE YEN A TREASURY OFFICIAL SAID MR BENTSEN HAS REJECTED A STRATEGY OF DRIVING THE DOLLAR DOWN AGAINST ALL CURRENCIES YOU CAN'T GET AWAY FROM THE FACT THAT THE YEN IS GOING TO HAVE TO STRENGTHEN IN THE MEDIUM TERM SAYS JOHN WILLIAMSON OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS WHICH HAS BEEN ARGUING FOR A HIGHER YEN AND LOWER DOLLAR FOR SOME TIME BUT THERE'S A REASONABLE ARGUMENT THAT THE YEN SHOULDN'T GO UP TOO MUCH IN THE SHORT RUN 9302260146 930226 INTERNATIONAL POSCO MAY WITHDRAW FROM US VENTURE OVER DUMPING FEES SEOUL SOUTH KOREA'S POHANG IRON & STEEL CO KNOWN AS POSCO ISN'T RULING OUT THE POSSIBILITY OF WITHDRAWING ITS INVESTMENTS FROM ITS US JOINT VENTURE UNITED POSCO INDUSTRIES CO BECAUSE OF DUMPING CHARGES BY THE US OFFICIALS AT POSCO SAID POSCO OFFICIALS SAID THE COMPANY IS TALKING WITH OFFICIALS AT THE JOINT VENTURE ABOUT THE DIFFICULTY OF SUPPLYING HOTROLLED COILS TO THE US UNIT AS IT AWAITS A FINAL RULING OF DUMPING CHARGES AGAINST SOUTH KOREA'S STEEL INDUSTRY THE RULING IS EXPECTED FROM THE US GOVERNMENT IN APRIL A DUMPING CHARGE WILL MAKE IT HARD FOR US TO CONTINUE PROVIDING HOTROLLED COILS TO THE US VENTURE AND THIS WILL EXACERBATE THE FINANCIAL PROBLEMS OF THE US VENTURE POSCO OFFICIALS SAID FOLLOWING THE IMPOSITION OF COUNTERVAILING DUTIES OF 5 LAST YEAR THE US GOVERNMENT SLAPPED PRELIMINARY PUNITIVE DUTIES OF 30 AGAINST SOUTH KOREAN STEEL PRODUCTS ON CHARGES THAT THEY SOLD THEIR PRODUCTS IN THE US BELOW FAIR PRICES THE 5050 VENTURE BETWEEN POSCO AND US STEEL OF THE US WAS ESTABLISHED IN 1987 AS AN EFFORT TO BRING COOPERATION BETWEEN THE TWO COUNTRIES' STEEL INDUSTRIES HOWEVER THE VENTURE HAS REPORTED DEFICITS SINCE ITS FOUNDATION LEAVING HEAVY DEBTS TO THE TWO COMPANIES USX CORP'S US STEEL AND POSCO EACH HAVE ABOUT 250 MILLION INVESTED IN THE JOINT VENTURE WHICH STARTED IN 1989 IT PROCESSES ABOUT ONE MILLION TONS A YEAR OF HOTROLLED STEEL SHEET MOST OF IT IMPORTED FROM KOREA THE VENTURE COMPRISES UNDER 10 OF US STEEL'S TOTAL SHIPMENTS POSCO COULD WITHDRAW FROM THE VENTURE BY SELLING ITS STAKE TO US STEEL OR TO A THIRD PARTY A USX SPOKESMAN CHARACTERIZED THE SITUATION AS A VERY STICKY PROBLEM HE POINTED OUT THAT USX DIDN'T JOIN THE DOMESTIC INDUSTRY'S TRADE SUITS AGAINST KOREA 9302260145 930226 FOREIGN EXCHANGE DOLLAR GAINS AS MARK SLIPS IN TRADING AGAINST OTHER EUROPEAN CURRENCIES BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAINED AGAINST THE MARK AS THE GERMAN CURRENCY SLIPPED IN CROSSTRADING AGAINST ITS EUROPEAN COUNTERPARTS YESTERDAY DEALERS SAID INVESTORS SOLD MARKS TO LOCK IN PROFITS FROM THE MARK'S ADVANCE EARLIER THIS WEEK EXPECTATIONS THAT TODAY'S REPORT ON THE US GROSS DOMESTIC PRODUCT WILL SHOW ROBUST GROWTH ALSO DREW SOME BUYERS TO THE DOLLAR YESTERDAY DEALERS SAID BUT THE CURRENCY ENDED MIXED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16357 MARKS UP FROM 16263 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11748 YEN UNCHANGED FROM WEDNESDAY STERLING WAS TRADING AT 14315 UP SLIGHTLY FROM 14295 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11770 YEN AND AT 16362 MARKS THE MARK SLIPPED IN THE FACE OF A MODERATE TECHNICAL REBOUND IN STERLING DEALERS SAID WHILE A MOMENTARY RESPITE IN ITALY'S POLITICAL CRISIS HELPED THE LIRA GAIN IT'S JUST A BREATHER FOR THE MOMENT FOR THOSE CURRENCIES SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK THE POUND AND THE LIRA HAD TUMBLED TO RECORD LOWS AGAINST THE MARK EARLIER THIS WEEK AND DEALERS SAID INVESTORS WERE ANXIOUS TO TAKE PROFITS YESTERDAY A RENEWED FOCUS ON PROSPECTS FOR US ECONOMIC RECOVERY ALSO HELPED THE DOLLAR AGAINST THE MARK DEALERS SAID YOU'VE GOT A GOOD COMBINATION OF DOLLAR ACTIVITY AND CROSS ACTIVITY SAID PETER CARRUTHERS A CORPORATE DEALER AT CREDIT SUISSE IN NEW YORK PLAYERS BOUGHT DOLLARS YESTERDAY ANTICIPATING TODAY'S FOURTHQUARTER GDP REVISION WILL SHOW THE US ECONOMY GREW FASTER THAN THE 38 ANNUAL PACE ORIGINALLY REPORTED DEALERS SAID EARL JOHNSON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO SAID EXPECTATIONS RUN AS HIGH AS A 5 GROWTH RATE THOUGH MOST PLAYERS SEE THE REVISED RATE FALLING BETWEEN 4 AND 45 EVEN THOUGH FEW ECONOMISTS EXPECT SUCH GROWTH RATES TO CONTINUE THIS YEAR MR JOHNSON SAID ANTICIPATION OF TODAY'S REPORT HAS HELPED ALLAY CONCERNS THE FEDERAL RESERVE MIGHT PUSH INTEREST RATES STILL LOWER TO HELP THE ECONOMY SHAKE OFF THE RECESSION DEALERS SAID THE DOLLAR'S GAINS AGAINST THE MARK YESTERDAY CAUGHT SOME SHORTTERM PLAYERS OFF GUARD AND THEIR BUYING ACCELERATED THE DOLLAR'S RISE MR AMENDOLA SAID INVESTORS WHO HAD SOLD THE DOLLAR EARLIER IN THE WEEK BETTING ON CONTINUED DECLINES DROVE IT HIGHER YESTERDAY AS THEY COVERED THEIR POSITIONS THE MARKET WAS REALLY SHORT DOLLARS HE SAID THE DOLLAR'S REBOUND CAUGHT EVERYBODY A BIT BY SURPRISE STERLING'S SURGE AGAINST THE MARK WAS SIMILAR YESTERDAY DEALERS SAID AS INVESTORS COVERING SHORTS BID THE POUND SHARPLY HIGHER IT'S JUST A LITTLE TECHNICAL REBOUND MR JOHNSON SAID LATE IN NEW YORK STERLING WAS QUOTED AT 23405 MARKS WELL ABOVE THE DAY'S LOW OF 23133 MARKS AND WEDNESDAY'S LATE QUOTE OF 23267 MARKS AGAINST THE LIRA MEANWHILE THE MARK SLIPPED AS PLAYERS TOOK PROFITS AFTER YESTERDAY'S CONFIDENCE VOTE IN THE ITALIAN PARLIAMENT 9302260144 930226 COMMODITIES COPPER FUTURES CONTINUE FALLING AMID CONCERNS ABOUT CLINTON PLAN ECONOMY IN JAPAN EUROPE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COPPER FUTURES PRICES CONTINUED DROPPING AMID GROWING CONCERNS ABOUT THE DEFLATIONARY POTENTIAL OF THE CLINTON ECONOMIC PACKAGE AND ABOUT STAGNATING GROWTH IN JAPAN AND EUROPE EACH DAY THIS WEEK COPPER FUTURES HAVE SKIDDED WITH THE MOST ACTIVE CONTRACTS DECLINING A TOTAL OF AROUND FOUR CENTS A POUND YESTERDAY COPPER FOR MARCH DELIVERY FINISHED 115 CENTS LOWER AT 9470 CENTS A POUND ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVELY TRADED MAY CONTRACT FELL 095 CENT TO 9575 CENTS COPPER IS USED EXTENSIVELY IN THE HOUSING AUTOMOTIVE ELECTRONICS AND TELECOMMUNICATIONS INDUSTRIES ANALYSTS SAID ECONOMICGROWTH PROSPECTS ARE DIMMING IN THE US JAPAN AND WESTERN EUROPE WHICH ACCOUNT FOR MORE THAN THREEFOURTHS OF THE COPPER CONSUMED WORLDWIDE THE ONE BULLISH FACTOR THAT HAD BEEN BUOYING COPPER PRICES EARLIER THIS YEAR WAS REPORTS OF SPORADIC BUYING FORAYS BY CHINESE TRADERS AND INVESTORS BUT SUCH REPORTS HAVE FADED AS A RESULT COPPER FUTURES PRICES FOR MARCH DELIVERY HAVE TUMBLED FROM THE RECENT SETTLEMENT HIGH OF 10760 A POUND ON JAN 8 WITH A SHORTLIVED FOURCENT RALLY IN BETWEEN THERE'S A PERCEPTION THAT THE CLINTON PROPOSALS WILL BE RECESSIONARY FOR THE US AND THAT THE JAPANESE ECONOMY RATHER THAN BOTTOMING OUT SEEMS TO BE WEAKENING SAID FRED DEMLER SENIOR METALS ECONOMIST WITH PAINEWEBBER IN NEW YORK JAPAN THE WORLD'S SECONDLARGEST CONSUMER OF COPPER AFTER THE US SAW ITS COPPER IMPORTS FALL BY 10 TO 12 LAST YEAR ACCORDING TO INDUSTRY ESTIMATES JAPAN'S CUTBACKS MORE THAN OUTWEIGHED AN INCREASE IN DEMAND LAST YEAR FROM CHINA AND FASTGROWING SOUTHEAST ASIAN NATIONS INDUSTRY EXPERTS SAID SUCH BEARISH SUPPLYANDDEMAND CONSIDERATIONS WERE TRIGGERING SPECULATIVE COMPUTERBASED SELLING OF COPPER FUTURES YESTERDAY BY LARGE COMMODITY FUNDS ANALYSTS SAID INDUSTRY CONCERN ABOUT HIGHER COPPER INVENTORIES BOTH IN THE US AND IN EUROPE ALSO WERE WEIGHING ON THE MARCH AND MAY COPPER CONTRACTS SCOTT MEYERS AN ANALYST WITH REDELSILGO GROUP SAID SOME OF YESTERDAY'S SELLING WAS ATTRIBUTABLE TO SPECULATORS WHO PREVIOUSLY BOUGHT CONTRACTS AND WANTED TO AVOID TAKING DELIVERY OF PHYSICAL COPPER ON THE MARCH CONTRACT FRIDAY IS THE FIRST NOTICE DAY FOR DELIVERY ON THAT MONTH'S CONTRACT IN GENERAL HOWEVER THE MAY CONTRACT HAS BEEN BEHAVING POORLY SINCE THE CLINTON DEFICITREDUCTION SPEECH MR MEYERS SAID ADDING AND IT CLEARLY BROKE DOWN WHEN THE MAY CONTRACT COULDN'T BREACH THE 1 LEVEL LAST WEEK MR MEYERS SAID THE MAY CONTRACT WHICH HAD TRADED AS LOW AS 9490 CENTS A POUND YESTERDAY COULD FALL TO 94 CENTS A POUND BEFORE LONG IN OTHER COMMODITY MARKETS ENERGY FRIGID TEMPERATURES IN MUCH OF THE COUNTRY AND FORECASTS OF ANOTHER WINTER STORM THIS WEEKEND ALONG THE EAST COAST SPARKED A RALLY IN HEATING OIL CONTRACTS IN ADDITION TRADERS SAID BULLISH INVENTORY REPORTS RELEASED EARLIER IN THE WEEK BY THE AMERICAN PETROLEUM INSTITUTE AND THE DEPARTMENT OF ENERGY SHOWED A LARGERTHANEXPECTED DECLINE IN INVENTORIES ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR MARCH DELIVERY SETTLED AT 5877 CENTS A GALLON UP 139 CENTS THE GAINS IN HEATING OIL PULLED CRUDE CONTRACTS HIGHER THOUGH OIL TRADING WAS RELATIVELY LIGHT CRUDE FOR APRIL DELIVERY ROSE EIGHT CENTS A BARREL TO 2061 ON THE NEW YORK MERC LUMBER LUMBER FUTURES PRICES SLUMPED AS TRADERS CONCLUDED THAT AFTER ITS LONG UPWARD PRICE MOVEMENT LUMBER IS NOW OVERPRICED SINCE NOVEMBER THE PRICE OF LUMBER FOR MARCH DELIVERY HAS RISEN NEARLY 150 ANALYSTS SAY THE PRICE OF LUMBER IS NOW SO HIGH THAT MANY CONSTRUCTION COMPANIES CAN'T MAKE A PROFIT BY BUILDING HOMES THE MARKET THEY SAY IS LIKELY TO SEEK A LEVEL AT WHICH USERS OF LUMBER CAN AFFORD TO BUY WOOD AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR MARCH DELIVERY PLUNGED 870 TO 43650 PER THOUSAND BOARD FEET WHILE OTHER MERC LUMBER CONTRACTS DECLINED BY THE DAILY LIMIT OF 10 PRECIOUS METALS FUTURES PRICES WERE MIXED WITH PLATINUM AND PALLADIUM REMAINING VOLATILE BECAUSE OF THE PERSISTENTLY STRONG YEN JAPAN IS THE WORLD'S LARGEST CONSUMER OF THE TWO DOLLARDENOMINATED METALS AND THE STRONGER YEN MAKES THEM CHEAPER FOR JAPANESE INVESTORS ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY CLIMBED 180 AN OUNCE TO 345 FOLLOWING WEDNESDAY'S DROP OF 360 AN OUNCE PALLADIUM FOR JUNE DELIVERY JUMPED 140 TO CLOSE AT 98 AN OUNCE FOLLOWING WEDNESDAY'S 525 DROP GOLD FOR APRIL DELIVERY EDGED UP 20 CENTS TO 33060 AN OUNCE IT HAS TRADED IN A NARROW RANGE OF 330331 SINCE TUESDAY ON THE NEW YORK COMMODITY EXCHANGE SILVER FOR MARCH DELIVERY FELL 21 CENTS TO CLOSE AT 3539 AN OUNCE ON THE COMEX TRADERS SAID COMMODITY FUNDS WERE BETTING HEAVILY THAT SILVER FUTURES PRICES WOULD CONTINUE TO FALL 9302260143 930226 GLENAYRE AVDATA FORM VENTURE NEW YORK GLENAYRE TECHNOLOGIES INC AND AVDATA SYSTEMS INC OF ATLANTA SAID THEY FORMED A SATELLITEBASED PAGING NETWORK CALLED GLENAYRE NETWORK SERVICES THE NETWORK ALLOWS PAGING OPERATORS TO LINK TERMINALS WITHOUT REQUIRING LEASED LINES OR RADIO FREQUENCY LINKS THE COMPANIES SAID GLENAYRE A SUPPLIER OF PAGING AND VOICEMESSAGING EQUIPMENT ALSO SAID IT WILL RESELL AVDATA'S VERY SMALL APERTURE TERMINAL COMMUNICATIONS PRODUCTS AND SERVICES TO THE NORTH AMERICAN PAGING INDUSTRY AVDATA PROVIDES SATELLITE NETWORKS 9302260142 930226 ACMECLEVELAND EXPECTS NET TO FALL IN ITS 2ND QUARTER BY RALPH E WINTER STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND ACMECLEVELAND CORP HAS SEEN A MODEST RISE IN DEMAND FOR ITS MAJOR PRODUCTS RECENTLY BUT IT PROBABLY WON'T BE ENOUGH TO AVOID A DECLINE IN EARNINGS FOR THE CURRENT QUARTER AND ALL OF FISCAL 1993 SAID DAVID L SWIFT CHAIRMAN AND CHIEF EXECUTIVE OFFICER EARNINGS FOR FISCAL 1993 PROBABLY WILL BE IN THE RANGE OF 40 CENTS TO 45 CENTS A SHARE MR SWIFT SAID IN FISCAL 1992 THE COMPANY EARNED 36 MILLION OR 53 CENTS A SHARE BEFORE EXTRAORDINARY ITEMS HOWEVER THAT INCLUDED ABOUT 25 MILLION OR 39 CENTS A SHARE FROM INVENTORY LIQUIDATION NET INCOME WAS 53 MILLION OR 79 CENTS A SHARE INCLUDING EXTRAORDINARY TAX CREDITS OF 17 MILLION OR 26 CENTS A SHARE SALES THIS FISCAL YEAR ARE LIKELY TO EXCEED 180 MILLION UP FROM 1776 MILLION IN FISCAL 1992 MR SWIFT SAID ACMECLEVELAND OBTAINS ABOUT 75 OF ITS SALES FROM MACHINE TOOLS EXPENDABLE TOOLING MEASURING EQUIPMENT SENSORS AND CONTROLS ALL USED MAINLY BY MANUFACTURERS OF METAL PRODUCTS THE REMAINING 25 OF SALES COMES FROM COMMUNICATIONS EQUIPMENT NET FOR THE SECOND QUARTER ENDING MARCH 31 IS UNLIKELY TO REACH THE 409000 OR FIVE CENTS A SHARE OF A YEAR AGO MR SWIFT SAID PARTLY BECAUSE JANUARY ORDERS AND SHIPMENTS WERE WEAKER THAN EXPECTED ALSO THE YEARAGO QUARTER NET INCLUDED TWO CENTS A SHARE FROM TAXLOSS CARRYFORWARDS WHICH MAY NOT BE AVAILABLE THIS QUARTER HOWEVER ORDERS IMPROVED IN FEBRUARY MR SWIFT SAID AND WE EXPECT MARCH TO BE A GOOD MONTH IF MARCH SHIPMENTS MEASURE UP TO EXPECTATIONS SALES THIS QUARTER WILL BE ONLY SLIGHTLY BELOW THE 444 MILLION OF A YEAR EARLIER AND THE QUARTER WILL BE PROFITABLE HE SAID ACMECLEVELAND LAST YEAR REDUCED ITS INVENTORIES NEARLY 25 BECAUSE THE COMPANY USES LASTIN FIRSTOUT INVENTORY ACCOUNTING THE COMPANY RECEIVED MORE THAN BOOK VALUE FOR THE INVENTORY IT SOLD PRODUCING THE GAIN FROM LIFO INVENTORY LIQUIDATION THE COMPANY IS CONTINUING EFFORTS TO REDUCE INVENTORIES MR SWIFT SAID BUT IF THE ECONOMY IMPROVES GRADUALLY AS EXPECTED IT WON'T BE POSSIBLE TO MAKE REDUCTIONS COMPARABLE TO LAST YEAR HE SAID THE CURRENT DIVIDEND OF 10 CENTS QUARTERLY OR 40 CENTS A YEAR APPEARS TO BE SECURE IN SPITE OF THE LIKELY EARNINGS DECLINE HE SAID THE COMPANY FINISHED FISCAL 1992 WITH 286 MILLION OF CASH UP FROM 17 MILLION A YEAR EARLIER LONGTERM DEBT INCLUDING THE CURRENT PORTION WAS ONLY 45 MILLION DIRECTORS HAVEN'T DISCUSSED ANY CHANGE IN THE DIVIDEND HE SAID 9302260141 930226 FINANCING BUSINESS UNITED DOMINION REALTY TRUST INC UNITED DOMINION REALTY TRUST INC RICHMOND VA COMPLETED A PRIVATE PLACEMENT OF 52 MILLION OF SENIOR UNSECURED NOTES WITH THREE INSURANCE COMPANIES THE NOTES MATURE IN JANUARY 2003 AND PROCEEDS WILL BE USED TO RETIRE SHORTTERM BANK DEBT 9302260140 930226 KAISER STEEL RESOURCES SAYS EARNINGS IN 4THQUARTER MORE THAN QUADRUPLED BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL RANCHO CUCAMONGA CALIF KAISER STEEL RESOURCES INC EXPECTS TO REPORT NET INCOME FOR THE FOURTH QUARTER ROSE MORE THAN FOURFOLD TO ABOUT 538000 OR FIVE CENTS A SHARE FROM THE YEAREARLIER 120000 OR ONE CENT A SHARE DANIEL N LARSON PRESIDENT SAID KAISER IS AN ENVIRONMENTAL RESOURCES COMPANY INVOLVED IN WASTE MANAGEMENT LAND DEVELOPMENT AND WATER RESOURCES THE COMPANY TOOK OVER AND IS DEVELOPING SEVERAL ASSETS THAT REMAINED AFTER POOR ECONOMIC CONDITIONS AND THE FINANCIAL EXCESSES OF THE 1980S PUSHED THE ONCEPROUD KAISER STEEL CORP INTO BANKRUPTCY REVENUE FOR THE QUARTER INCREASED TO ABOUT 3 MILLION FROM 18 MILLION MR LARSON SAID FOR THE YEAR HE SAID THE COMPANY EXPECTS TO REPORT NET INCOME OF ABOUT 15 MILLION OR 14 CENTS A SHARE A 35 INCREASE OVER LAST YEAR'S 11 MILLION OR 11 CENTS A SHARE REVENUE INCREASED TO 99 MILLION FROM 86 MILLION MR LARSON SAID THE COMPANY'S PRETAX RESULTS ARE EVEN MORE IMPORTANT BECAUSE OF THE 105 MILLION IN NET OPERATING LOSS CARRYFORWARDS THE COMPANY PRESERVED OUT OF ITS BANKRUPTCY REORGANIZATION AS A RESULT OF THESE KAISER IS SHELTERED FROM ALL BUT ABOUT 7 OF ITS REPORTED TAX THE SAVINGS IS APPLIED TO SHAREHOLDER'S EQUITY IT'S A TREMENDOUS BENEFIT ESPECIALLY IF TAXES GO UP HE SAID MR LARSON CALLED THIS YEAR'S RESULTS A DRAMATIC INCREASE OVER THE PAST FEW YEARS WHEN EARNINGS HAD BEEN RELATIVELY FLAT AND ATTRIBUTED MUCH OF THIS TO CHANGES IN THE WATER RESOURCE COMPONENT OF THE COMPANY'S BUSINESSES KAISER STEEL FOUNDED BY HENRY KAISER IN 1941 ONCE WAS THE WEST COAST'S LARGEST STEEL PRODUCER NINTHLARGEST IN THE NATION AND A BILLIONDOLLAR COMPANY EMPLOYING 10000 WORKERS BUT PRICE COMPETITION FROM JAPAN AND SOUTH KOREA TOOK ITS TOLL ALONG WITH HIGH COSTS IN ENVIRONMENTAL COMPLIANCE AND LABOR IN SOUTHERN CALIFORNIA IN 1983 CORPORATE RAIDER AND MINNEAPOLIS FINANCIER IRWIN JACOBS BOUGHT A 16 STAKE AND SOON PUT THE COMPANY IN PLAY MR JACOBS LATER SOLD HIS STAKE AT A PROFIT AND THE COMPANY WENT PRIVATE IN 1984 IN A 375 MILLION LEVERAGED BUYOUT THE FIRST OF TWO SUCH BUYOUTS BUT BY THE TIME ALL THESE MACHINATIONS WERE COMPLETED KAISER STEEL WAS AN EMPTY HULK A COMPANY THAT HAD 500 MILLION IN THE BANK IN THE EARLY 1980S SOON FACED 1 BILLION IN CLAIMS INCLUDING LBO DEBT ABOUT 500 MILLION IN UNFUNDED MEDICAL BENEFITS AND ABOUT 250 MILLION IN UNFUNDED PENSION OBLIGATIONS SOME 7000 EMPLOYEES WHO HAD WORKED FOR THE COMPANY FOR 20 YEARS AND MORE SUDDENLY HAD NO HEALTH BENEFITS IT WAS A TRAGIC SITUATION MR LARSON SAID THE COMPANY FILED FOR BANKRUPTCYLAW PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN 1987 NOT MANY OTHERS THOUGHT OF THESE AS ASSETS AT ALL MR LARSON SAID ANYTHING THAT HAD ANY VALUE HAD WALKED OUT THE DOOR LONG BEFORE US THE TWO MAJOR CREDITORS A TRUST SET UP TO MANAGE MEDICAL BENEFITS FOR THE RETIREES AND THE FEDERAL GOVERNMENT'S PENSION BENEFIT GUARANTY CORP TOOK MAJOR STAKES TEN DAYS AFTER MR LARSON JOINED THE COMPANY THE SITE OF KAISER'S STEEL MILL IN FONTANA CALIF ONE OF THE KEY ASSETS WAS PROPOSED AS A FEDERAL SUPERFUND SITE IT WAS ONE OF THOSE SURPRISES YOU GET AFTER COMING ON BOARD HE SAID BUT THE SITE DIDN'T BECOME A SUPERFUND SITE AND ONLY 30 ACRES OUT OF 1175 ACRES NOW REQUIRES REMEDIAL ENVIRONMENTAL WORK MR LARSON SAID THE NEW KAISER STEEL RESOURCES WENT PUBLIC IN 1990 AT 175 A SHARE IT HAS PURSUED LITIGATION AGAINST MR JACOBS INVESTOR IVAN BOESKY FORMER OFFICERS AND DIRECTORS AND OTHER PARTIES THE LAWSUITS ALREADY HAVE RESULTED IN THE COLLECTION OF SOME 40 MILLION WITH SOME CLAIMS REMAINING ALL PROCEEDS GO TO CREDITORS THE COMPANY WAS LEFT WITH THREE MAJOR ASSETS FIRST WAS THE FONTANA SITE REDUCED TO ITS PRESENT SIZE FROM AN ORIGINAL 1500 ACRES THE PLAN WAS TO DEVELOP THE SITE INTO AN INDUSTRIAL PARK BUT THE REAL ESTATE CRUNCH IN SOUTHERN CALIFORNIA HAS PUT THAT ON HOLD MEANWHILE THE COMPANY OPERATES A WASTE TREATMENT FACILITY AND SEVERAL TENANTS PROCESS SLAG USING EXISTING BUILDINGS FOR STORAGE AS A REVENUEGENERATING SIDELINE THE SHELL OF THE OLD MILL HAS BEEN A LOCATION SITE FOR SOME 60 FEATURE FILMS IN THE PAST FEW YEARS INCLUDING TERMINATOR 2 JUDGMENT DAY AND ROBOCOP THE COMPANY ALSO IS CONTEMPLATING A MOTOR SPORTS FACILITY THERE MR LARSON SAID THE COMPANY HAS A LONGTERM LEASE AGREEMENT COVERING A 51 OWNERSHIP INTEREST IN A WATER COMPANY THAT WAS USED TO SUPPLY WATER TO COOL THE STEEL WHEN IT CAME OUT OF THE BLAST FURNACES MR LARSON SAID THAT BECAUSE OF A 21 RATE INCREASE LAST JULY A FAVORABLE CHANGE IN THE LEASE AGREEMENT AS A RESULT OF LITIGATION AND THE END OF LOCAL DROUGHT CONDITIONS KAISER'S WATER RESOURCE DIVISION INCREASED REVENUE TO 34 MILLION IN 1992 FROM 14 MILLION THE YEAR BEFORE MR LARSON PROJECTS REVENUE OF 4 MILLION FOR IN 1993 KAISER'S OTHER MAJOR RESOURCE IS EAGLE MOUNTAIN A FORMER COMPANY TOWN AND IRON ORE SITE FOR THE MILL 120 MILES EAST BY RAIL LINE IN THE MIDDLE OF THE CALIFORNIA DESERT ITS PARTNER MINE RECLAMATION CORP 50OWNED BY BROWNING FERRIS INDUSTRIES INC PLANS TO USE THE SITE AS A LANDFILL FOR LOS ANGELES FOR WHICH KAISER WOULD SHARE IN THE REVENUE CURRENTLY KAISER RECEIVES LEASE PAYMENTS OF 100000 PER MONTH FROM MINE RECLAMATION THAT FIGURE WILL DOUBLE AT THE END OF 1993 THE SITE COULD HANDLE 20000 TONS OF WASTE A DAY FOR 100 YEARS THE COMPANY SAID FOR EAGLE MOUNTAIN TO BECOME A LANDFILL CERTAIN REGULATORY HURDLES REMAIN BUT MR LARSON SAID HE HOPES IT COULD BE OPERATIONAL IN TWO TO THREE YEARS CURRENTLY WHERE A GHOST TOWN ONCE STOOD A MINIMUMSECURITY PRISON OPERATES BRINGING IN 675000 A YEAR TO THE COMPANY KAISER RECENTLY COMPLETED A 6 MILLION OFFERING OF COMMON STOCK THREEQUARTERS OF WHICH WAS A SECONDARY OFFERING BY THE COMPANY'S TWO PRINCIPAL HOLDERS THE COMPANY'S SHARE OF THE FUNDS WILL BE USED FOR CONSTRUCTION OF A MATERIALS RECYCLING PLANT AND TRANSFER STATION ON THE FONTANA SITE AS WELL AS POSSIBLE ACQUISITION OPPORTUNITIES IT BOLSTERED OUR BALANCE SHEET SAID MR LARSON WE'RE ESSENTIALLY DEBTFREE 9302260139 930226 FINANCING BUSINESS DOMTAR INC DOMTAR INC SAID IT WILL ISSUE 150 MILLION CANADIAN DOLLARS US1191 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES SUBJECT TO REGULATORY APPROVAL THE 10YEAR DEBENTURES WILL BE CONVERTIBLE INTO COMMON SHARES AT A PRICE OF C650 DURING THE FIRST FIVE YEARS AND C725 DURING THE LAST FIVE YEARS AND BEAR INTEREST AT A RATE OF 8 THE MONTREALBASED FOREST PRODUCTS COMPANY SAID SOCIETE GENERALE DE FINANCEMENT DU QUEBEC AND CAISSE DE DEPOTS ET PLACEMENT DU QUEBEC WILL PURCHASE C66 MILLION OF THE PUBLIC OFFERING PROCEEDS WILL BE USED FOR DOMTAR'S CAPITAL EXPENDITURE PROGRAM AND TO REDEEM DEBENTURES A SYNDICATE LED BY BURNS FRY LTD WILL UNDERWRITE THE ISSUE 9302260138 930226 WHO'S NEWS CHRYSLER'S LOBECK LEAVES FIRM HIGHLAND PARK MICH CHRYSLER CORP SAID WILLIAM E LOBECK JR PRESIDENT OF ITS PENTASTAR TRANSPORTATION GROUP INC HAS LEFT THE COMPANY CHRYSLER SAID MR LOBECK'S DEPARTURE WAS MUTUALLY ACCEPTED BY BOTH PARTIES AND NO FURTHER DETAILS WERE GIVEN MR LOBECK COULDN'T BE REACHED FOR COMMENT CHRYSLER SAID NO SUCCESSOR WILL BE NAMED BUT THAT THE PRESIDENTS OF ITS THREE CARRENTAL UNITS WILL REPORT DIRECTLY TO JERRY B YORK AN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9302260137 930226 AMERICAN ELECTRIC UNIT'S BONDS CANTON OHIO AMERICAN ELECTRIC POWER CO SAID ITS OHIO POWER CO UNIT WILL REDEEM THE ENTIRE 38 MILLION OUTSTANDING OF ITS 9 1/4 SERIES OF FIRST MORTGAGE BONDS DUE 2008 THE BONDS WILL BE REDEEMED APRIL 1 AT 10041 OF THE PRINCIPAL AMOUNT PLUS INTEREST FROM MARCH 1 THROUGH APRIL 1 THE COMPANY SAID OHIO POWER ALSO WILL REDEEM A PORTION OF TWO OTHER BOND ISSUES THE COMPANY ON APRIL 15 WILL REDEEM 800000 PRINCIPAL AMOUNT OF ITS 9 1/4 SERIES OF FIRST MORTGAGE BONDS DUE 2006 THE BONDS WILL BE REDEEMED AT 10118 OF THE PRINCIPAL AMOUNT PLUS INTEREST ACCRUED THROUGH THE REDEMPTION DATE THE COMPANY WILL REDEEM 4025 MILLION PRINCIPAL AMOUNT OF ITS 9 7/8 SERIES OF FIRST MORTGAGE BONDS DUE 1998 AT 100 OF THE PRINCIPAL AMOUNT PLUS INTEREST ACCRUED THROUGH THE REDEMPTION DATE OF APRIL 15 CHEMICAL BANK NEW YORK IS THE REDEMPTION AGENT 9302260136 930226 GM TO LAY OFF WORKERS IN ITS JOBS BANK PROGRAM DETROIT GENERAL MOTORS CORP AS EXPECTED SAID IT WILL LAY OFF MONDAY SEVERAL THOUSAND HOURLY WORKERS IN ITS JOBS BANK PROGRAM BECAUSE THE 17 BILLION FUNDING COMMITTED TO THE PROGRAM HAS RUN OUT THE NEARLY THREEYEAROLD JOBS BANK PROGRAM IS DESIGNED FOR WORKERS ON LONGTERM LAYOFF WHO RECEIVE FULL PAY FOR DOING NONTRADITIONAL WORK SUCH AS COMMUNITY SERVICE PROGRAMS BUT IT IS A COSTLY PROGRAM AND ITS FUTURE IS CERTAIN TO BE A HOT TOPIC THIS SUMMER WHEN GM AND THE UNITED AUTO WORKERS UNION BEGIN NEGOTIATIONS FOR THEIR 1993 CONTRACT GM SAID THE JOBS BANK WORKERS WILL CONTINUE RECEIVING VIRTUALLY FULL PAY THROUGH A DIFFERENT INCOME SECURITY PROGRAM CURRENTLY THERE ARE 20000 WORKERS IN THE JOBS BANK PROGRAM BUT IT IS UNCLEAR HOW MANY WORKERS WILL BE LAID OFF AT LEAST 9000 OF THOSE HOURLY WORKERS ARE EXPECTED TO SIGN UP FOR EARLY RETIREMENT BY MARCH 1 WHICH WILL CREATE JOBS BANK OPENINGS FOR OTHER GM WORKERS 9302260135 930226 BUNDESBANK AIDE WARNS BRITAIN ITALY ON CURRENCIES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT BUNDESBANK VICE PRESIDENT HANS TIETMEYER WARNED BRITAIN AND ITALY AGAINST EXPLOITING THEIR FLOATING CURRENCIES TO PURSUE BEGGARMYNEIGHBOR POLICIES MR TIETMEYER WHO IS LIKELY TO SUCCEED HELMUT SCHLESINGER AS BUNDESBANK PRESIDENT IN SEPTEMBER ALSO CAUTIONED AGAINST EXAGGERATED EXPECTATIONS FOR GERMAN INTERESTRATE REDUCTIONS SEVERAL COUNTRIES IN EUROPE STILL HAVE MUCH TO DO TO GET THEIR HOUSE IN ORDER MR TIETMEYER SAID IN A SPEECH AT HAMBURG UNIVERSITY THIS PRIMARILY APPLIES TO COUNTRIES WITH CURRENCIES THAT ARE CURRENTLY FLOATING ITALY AND GREAT BRITAIN THE POUND AND THE LIRA HAVE SETTLED SINCE THEY WERE WITHDRAWN FROM THE RIGID EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM LAST SEPTEMBER GIVING THEIR EXPORTERS A COMPETITIVE EDGE OVER EUROPEAN COMPETITORS BUT MR TIETMEYER OBSERVED THAT THE SUSPENSION ALSO FREED THEM FROM THE ENFORCED DISCIPLINE ON MONETARY AND FISCAL POLICIES OF COUNTRIES WITH CURRENCIES LOCKED INTO THE SYSTEM NEGLECTING CURRENCY STABILITY TO PROMOTE EXPORT GROWTH COULD IMPORT INFLATION BY DRIVING UP IMPORT PRICES HE SAID BEYOND THAT SUCH A DEVELOPMENT ALSO COULD LEAD TO COMPETITIVE DEVALUATIONS AND ULTIMATELY A BEGGARMYNEIGHBOR POLICY MR TIETMEYER SAID HE ALSO WARNED COUNTRIES WHOSE CURRENCIES HAD BEEN DEVALUED IN THE ERM SINCE LAST AUTUMN SPAIN PORTUGAL AND IRELAND AGAINST BACKSLIDING ON FISCAL REFORMS REQUIRED BY THE MAASTRICHT TREATY FOR EUROPEAN MONETARY UNION THE NECESSARY INTERNAL CORRECTIONS SHOULDN'T BE POSTPONED IN COUNTRIES WHERE REALIGNMENTS HAVE CREATED NEW EXCHANGE RATES AND COMPETITIVE STRUCTURES HE SAID THE FUNCTIONING OF THE EUROPEAN MONETARY SYSTEM CAN BE SUSTAINED ONLY WITH A CONVERGENCE OF STABILITY POLICIES BRITAIN BECAUSE IT NO LONGER MUST ALIGN ITS MONETARY POLICIES WITH THE BUNDESBANK TO DEFEND ITS ERM PARITY WITH THE MARK HAS SLASHED INTEREST RATES TO BOOST ITS ECONOMY SALOMON BROTHERS IN LONDON THIS WEEK JUDGED THAT BRITAIN'S COMPETITIVE CURRENCY IS SHIELDING IT FROM THE SLUMP SPREADING ON THE CONTINENT AND THAT EXPORT GROWTH COULD PROVIDE ABOUT ONEHALF OF THE TOTAL RISE IN OUTPUT IN 1993 AND 1994 MEANWHILE ECONOMIES WITH CURRENCIES STILL IN THE ERM GRID ARE THREATENED WITH FOLLOWING GERMANY INTO RECESSION MANY MARKET ECONOMISTS WERE EXPECTING THE NEXT GERMAN RATE REDUCTION TO COME AS EARLY AS MARCH AS A RESPONSE TO GERMANY'S DEEPENING RECESSION SPECULATION ALSO IS BASED ON CONTINUED STRAINS IN THE EMS A SHARP SLOWDOWN IN GERMAN MONEY SUPPLY GROWTH IN JANUARY SIGNS IN FEBRUARY OF INFLATION SLOWING TO BELOW 4 IN COMING MONTHS MODERATE WAGE SETTLEMENTS IN WESTERN GERMANY AND ON GOVERNMENT EFFORTS TO CONTAIN FISCAL DEFICITS MR TIETMEYER ACKNOWLEDGED THAT GERMAN POLICIES HAVE BECOME A BURDEN FOR THE REST OF EUROPE BUT HELD UP THE BUNDESBANK'S ROLE AS A GUARANTOR OF MONETARY STABILITY IN EUROPE BECAUSE OF THE MARK'S ROLE AS AN ANCHOR CURRENCY CONCERNING QUESTIONS ABOUT WHAT ROLE THE BUNDESBANK COULD PLAY IN AIDING GERMANY'S RECOVERY FROM RECESSION HE STRESSED THAT THE BUNDESBANK'S GOAL REMAINS CONTAINING INFLATION AND MAINTAINING A STABLE CURRENCY 9302260134 930226 HOW A PRIVATE BUSINESSMAN IN BURMA NAVIGATES CHOPPY GOVERNMENT WATERS BY BARRY WAIN STAFF REPORTER OF THE WALL STREET JOURNAL RANGOON BURMA TIN MAUNG HTWAY IS A CONTRADICTION IN TERMS A VETERAN PRIVATE BUSINESSMAN IN BURMA WHEN HE BEGAN TO FLIRT WITH CAPITALISM MORE THAN 40 YEARS AGO BURMA SEEMED SET TO LEAD MOST OF ASIA IN ECONOMIC DEVELOPMENT A MAJOR RICE EXPORTER WITH VAST NATURAL RESOURCES THE COUNTRY WAS ALSO EXPORTING GOODS RANGING FROM CIGARETTES AND BEER TO TEXTILES AND GARMENTS THEN THE ARMY SEIZED POWER TOOK OVER EVERY FARM FACTORY AND BANK AND PRACTICED HARDNOSED SOCIALISM FOR 26 RUINOUS YEARS WHILE OTHER ASIAN LANDS WERE BOOMING RECLUSIVE BURMA BECAME AS DESIGNATED BY THE UNITED NATIONS ONE OF THE WORLD'S LEASTDEVELOPED COUNTRIES WITHOUT NATIONALIZATION WE WOULD NOW BE SECOND TO JAPAN IN REGIONAL LIVING STANDARDS SAYS MR TIN MAUNG HTWAY AND HE WITH LITTLE DOUBT WOULD BE A BILLIONAIRE AS IT IS HE IS EXTREMELY WEALTHY BY BURMESE STANDARDS HAVING PICKED HIS WAY THROUGH A MINEFIELD OF CENTRAL PLANNING STATE OWNERSHIP AND SOCIALIST DOGMA TO MAKE HIS MONEY IN PRIVATE ENTERPRISE HE IS KNOWN NATIONWIDE FOR HIS LINE OF COSMETICS AND AS A MAGAZINE PUBLISHER AND PHILANTHROPIST OTHER BURMESE ARE IN BUSINESS TODAY INCLUDING MANY WHO SET UP SHOP AFTER THE MILITARY DISCARDED SOCIALISM IN 1988 AND OPENED THE DOOR TO THE OUTSIDE WORLD AS WELL AS SOME LONGAGO INDUSTRIALISTS WHO HAVE REAPPEARED SINCE THE LIBERALIZATION BUT HE HAS BEEN AT IT FOR FOUR DECADES NO DISSIDENT 50YEAROLD MR TIN MAUNG HTWAY SERVES AS A GOVERNMENTAPPOINTED EXECUTIVE COMMITTEE MEMBER OF THE NATION'S CHAMBER OF COMMERCE AND INDUSTRY HE IS ONE OF THE FEW BURMESE CONFIDENT ENOUGH TO SPEAK PUBLICLY THOUGH EVEN HE SKIRTS SENSITIVE ISSUES AND AVOIDS CRITICISM OF THE RULING MILITARY JUNTA MR TIN MAUNG HTWAY PAID HIS WAY THROUGH RANGOON UNIVERSITY IN THE LATE 1950S BY MAKING AND SELLING HAIR OIL WITH FOUR OTHER STUDENTS THE HAIR DRESSING WAS MARKETED UNDER THE BRAND NAME TEKKATHO MEANING UNIVERSITY SALES WENT NATIONWIDE REACHING 480000 UNITS A YEAR GEN NE WIN'S COUP IN 1962 ENDED NOT ONLY PARLIAMENTARY DEMOCRACY BUT ALSO ALL FORMS OF PRIVATE BUSINESS MANY BUSINESSMEN LANDED IN JAIL OR EXILE MR TIN MAUNG HTWAY WHO HAD MOVED ON TO STUDYING LAW IS COY ABOUT WHAT HAPPENED TO HIM I HAD TO TAKE A REST FROM 1964 TO 1969 HE SAYS WE WEREN'T ALLOWED TO WORK WHILE RESTING HE BRUSHED UP ON CHEMISTRY FOR HIS NEXT VENTURE AN ATTEMPT TO IMPROVE THE THANAKA TREEBARK COSMETIC THAT BURMESE WOMEN USE TO COVER THEIR CHEEKS AND FOREHEAD TO WARD OFF THE TROPICAL SUN BUT THE THANAKA TRADITIONALLY CHIPPED FROM BRANCHES POWDERED AND MADE INTO A PASTE WITH WATER OFTEN LASTS LESS THAN AN HOUR EITHER FLAKING OFF OR WASHING AWAY WITH PERSPIRATION MR TIN MAUNG HTWAY INVENTED A THANAKA POWDER THAT NEEDED NO PREPARATION AND LASTED FOR HOURS GETTING IT TO MARKET WAS ANOTHER MATTER UNLIKELY TO GET APPROVAL TO SET UP A PLANT WITH THE 50 EMPLOYEES HE NEEDED TO PRODUCE THE NEW PRODUCT MR TIN MAUNG HTWAY RESORTED TO SUBTERFUGE HE SUBCONTRACTED EACH STEP OF THE PROCESS TO FAMILIES IN DIFFERENT PARTS OF THE CITY USING A PHOTO OF A BEAUTIFUL ACTRESS HE PLACED A HALFPAGE ADVERTISEMENT IN A STATEOWNED DAILY NEWSPAPER IN 1970 BECOMING THE FIRST PERSON TO ADVERTISE IN THE SOCIALIST PERIOD AS EXPECTED THAT CREATED A SENSATION AND BROUGHT THE AUTHORITIES TO HIS DOOR BUT WITH WHAT TURNED OUT TO BE PERFECT TIMING HE WAS ABLE TO PUT THEM OFF FOR A FEW YEARS UNTIL THE GOVERNMENT ACKNOWLEDGED ITS ECONOMIC SHORTCOMINGS AND PERMITTED A LIMITED RESUMPTION OF PRIVATE COMMERCE I WAS THE FIRST HE SAYS SLOWLY SLOWLY OTHERS OPENED BUSINESSES AFTER THAT IRONICALLY IT WASN'T UNTIL 1988 WHEN THE GOVERNMENT ABANDONED SOCIALISM ALTOGETHER THAT MR TIN MAUNG HTWAY ENCOUNTERED SERIOUS MARKET RESISTANCE TO HIS PRODUCTS IN ONE OF ITS MORE BIZARRE MOVES THE NE WIN REGIME IN LATE 1987 WITHDREW THE THREE MOST COMMON BANKNOTES WITHOUT COMPENSATION WIPING OUT 80 OF THE MONEY SUPPLY AND FURTHER IMPOVERISHING LARGE SEGMENTS OF THE POPULATION A GOVERNMENT PROGRAM IN 1989 TO FORCIBLY RELOCATE HUNDREDS OF THOUSANDS OF RESIDENTS FROM RANGOON THE CAPITAL CAUSED MORE DISLOCATION AND HARDSHIP MY MAIN CUSTOMERS THE MIDDLE CLASS AND THE POOR WERE HIT HARDEST BY DEMONETIZATION AND RESETTLEMENT SAYS MR TIN MAUNG HTWAY AMONG THOSE RELOCATED WERE MANY HAWKERS WHO WERE BOTH BUYERS AND SELLERS OF MY PRODUCTS RAMPANT INFLATION FURTHER REDUCED PURCHASING POWER AND WITH BORDER TRADE LEGALIZED AS PART OF THE MARKET REFORMS MOREATTRACTIVELY PACKAGED RIVAL PRODUCTS POURED IN FROM CHINA THAILAND AND SINGAPORE MR TIN MAUNG HTWAY SAYS SALES OF HIS NATYEKEN COSMETICS HAVE FALLEN 75 FROM A PEAK OF 600000 UNITS IN 1987 LEAVING THE COMPANY WITH A LOSS EVERY YEAR BUT HE SAYS THAT'S MORE THAN OFFSET BY PROFIT FROM A GENERALINTEREST MAGAZINE NAMED NATYEKAN THAT HE STARTED SEVEN YEARS AGO THE MAGAZINE FEATURES SHORT PHOTOILLUSTRATED ARTICLES MANY LIFTED WITHOUT PERMISSION FROM OVERSEAS PUBLICATIONS THOUGH NATYEKAN SELLS ONLY ABOUT 5000 COPIES ITS READERSHIP IS RECORDED AT AROUND 500000 THAT'S BECAUSE FEW CAN AFFORD THE 40KYAT COVER PRICE 635 AT THE OFFICIAL EXCHANGE RATE 40 US CENTS ON THE FREE MARKET MOST READERS RENT THE MAGAZINE FROM LENDING STALLS OBTAINING APPROVAL FOR NATYEKAN REPRESENTED ANOTHER BREAKTHROUGH UNTIL THEN THE ONLY MAGAZINES IN BURMA WERE CONTROLLED BY WELLCONNECTED FORMER MILITARY OFFICERS EVEN TODAY NEWSPAPERS REMAIN STATEOWNED MR TIN MAUNG HTWAY PLAYS HIS PART BY FOLLOWING UNWRITTEN GUIDELINES ON CONTENT NO POLITICS AND NOTHING SEXY HE SAYS HE SUBMITS EACH ISSUE TO GOVERNMENT CENSORS AND ABOUT 100 FREE COPIES ARE DISTRIBUTED EACH MONTH TO THE RULING GENERALS AND OTHER SENIOR OFFICIALS HE ALSO WINS POINTS BY DONATING MORE THAN A MILLION KYAT A YEAR TO HOSPITALS AND OTHER CAUSES THESE DAYS MR TIN MAUNG HTWAY IS GEARING UP TO PRODUCE ORANGE JUICE ACTUALLY LIQUID CONCENTRATE TO BE SOLD IN PLASTIC BOTTLES IT WILL BEAR THE LABEL SUNKISS WHICH HE CONCEDES WITH A CHUCKLE IS SIMILAR TO AN AMERICAN BRAND MR TIN MAUNG HTWAY SAYS HE HAS URGED THE GOVERNMENT TO BEGIN REBUILDING INDUSTRY FROM ZERO STARTING WITH TOURISM WE HAVE GREAT EXPECTATIONS HE SAYS BUT HE CONSTANTLY RETURNS TO CONCERN FOR THE PLIGHT OF THE COUNTRY'S POOR AND THE NEED FOR THE MIDDLE CLASS TO REGAIN ITS PURCHASING POWER MR TIN MAUNG HTWAY SEES HIS OWN FUTURE INTIMATELY CONNECTED WITH BURMA'S RECOVERY IF THE ECONOMY IS GOOD THE MAGAZINE THE COSMETICS AND THE ORANGE JUICE WILL DO WELL HE SAYS EVERYTHING ELSE WILL ALSO BE GOOD 9302260133 930226 FINANCING BUSINESS INTERACTIVE NETWORK INC INTERACTIVE NETWORK INC MOUNTAIN VIEW CALIF SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK THE INTERACTIVE TELEVISION COMPANY SAID ALL OF THE SHARES WILL BE NEWLY ISSUED BY THE COMPANY PROCEEDS FROM THE OFFERING WILL BE USED TO PAY FOR SALES AND MARKETING AND GENERAL CORPORATE PURPOSES IT SAID 9302260132 930226 TECHNOLOGY USBACKED AGENCY URGES LIMITED CATARACT SURGERY WASHINGTON AP GOVERNMENTBACKED GUIDELINES ISSUED TODAY TELL EYE DOCTORS NOT TO BE SO QUICK TO PERFORM CATARACT SURGERY AND CALL INTO QUESTION SOME TESTS USED TO SCREEN ELDERLY CANDIDATES FOR THE OPERATION A PANEL OF LEADING OPHTHALMOLOGISTS AND OTHER EYE EXPERTS RECOMMENDED THAT DOCTORS AND THEIR PATIENTS TRY STRONGER GLASSES MAGNIFYING LENSES AND OTHER STEPS BEFORE RESORTING TO SURGERY THE GUIDELINES ISSUED BY THE PUBLIC HEALTH SERVICE DREW FIRE FROM OTHER GROUPS OF EYE SURGEONS WHO CLAIMED THE GOVERNMENT WAS REALLY LOOKING FOR WAYS TO CUT THE 34 BILLION IT SPENDS ON CATARACT SURGERY FOR 135 MILLION MEDICARE PATIENTS EACH YEAR A CATARACT IS A CLOUDY AREA IN THE LENS OF AN EYE THAT NORMALLY OCCURS AS PEOPLE GROW OLD SOME 400000 AMERICANS DEVELOP CATARACTS EACH YEAR CATARACT REMOVAL AND INSERTION OF AN ARTIFICIAL LENS IS USUALLY PERFORMED AS AN OUTPATIENT PROCEDURE IN LESS THAN AN HOUR MEDICARE HAS REDUCED THE FEES PAID TO CATARACT SURGEONS TO ABOUT 1150 FROM 1850 FIVE YEARS AGO 9302260131 930226 CLINTON'S PROPOSALS GIVE A BIG BOOST TO BIG MORTGAGES BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL WITH HIGHER TAX RATES LOOMING AND MORTGAGE INTEREST THE ONLY REMAINING TAX DEDUCTION OF ANY SIGNIFICANCE FOR MOST PEOPLE BIG MORTGAGES LOOK MORE ATTRACTIVE THAN EVER FOR MANY UPPER INCOME TAXPAYERS PEOPLE WITH HIGH INCOMES CAN AFFORD BIG MORTGAGES SAYS S TIMOTHY KOCHIS A FINANCIAL PLANNER IN SAN FRANCISCO UNDER THE PRESIDT'S TAX PLAN THEY CAN AFFORD EVEN MORE BECAUSE THE AFTERTAX COST IS EVEN LOWER LOW INTEREST RATES MAKE THE POSSIBILITIES EVEN MORE ENTICING FINANCIAL ADVISERS SAY THEIR PHONES HAVE BEEN RINGING SINCE THE PRESIDENT'S SPEECH LAST WEEK WITH CLIENTS ASKING ABOUT REFINANCING OR INCREASING THE SIZE OF THE MORTGAGE ON PROPERTY THEY'RE PLANNING TO BUY WHEN YOU COUPLE HIGHER TAX RATES WITH LOWER INTEREST RATES YOU'RE GOING TO SEE A LOT MORE BORROWING AGAINST REAL ESTATE SAYS PAT MULLIN A PARTNER WITH ACCOUNTANTS DELOITTE & TOUCHE IN CLEVELAND THE MATH IS SIMPLE WITH THE AVERAGE FIXED RATE ON 30YEAR MORTGAGES APPROACHING 75 AND THE TOP STATED TAX RATE UNDER THE CLINTON TAX PLAN AT 396 INCLUDING THE SURTAX ON THE WEALTHIEST THE AFTERTAX COST OF BORROWING TO FINANCE A HOME IS CLOSE TO 45 IT'S EVEN LOWER FOR PEOPLE WHO TAKE ADVANTAGE OF SOME OF THE SUPERLOW RATES AVAILABLE ON ADJUSTABLERATE MORTGAGES BOSTON SAFE DEPOSIT & TRUST CO FOR EXAMPLE HAS A 5 3/8 ADJUSTABLERATE LOAN WITH NO ORIGINATION FEES AND NO CLOSING COSTS INTENDED FOR PEOPLE WHO WANT TO REFINANCE WITH THE PROPOSED HIGHER TAX RATES THE AFTERTAX COST WOULD AMOUNT TO LESS THAN 35 THAT'S ESPECIALLY APPEALING TO THE WEALTHY WHO MAY BE ABLE TO INVEST SOME OF THAT BORROWED MONEY AT BETTER RATES THE HIGHER THE TAX RATE IS THE MORE BIG MORTGAGES WE'LL SEE PREDICTS CHRISTOPHER M CONDRON PRESIDENT OF BOSTON SAFE WHICH HAS A MINIMUM MORTGAGE OF 350000 STILL THERE OTHER THINGS TO CONSIDER EVEN FOR THE WEALTHY BEFORE RUSHING OUT TO GET A BIGGER MORTGAGE THERE HAVE BEEN SUGGESTIONS IN THE PAST FOR INSTANCE THAT THE CAP ON DEDUCTIBILITY OF INTEREST BE LOWERED FROM THE CURRENT 11 MILLION IN MORTGAGE DEBT ALTHOUGH THERE'S NO SUCH PROPOSAL IN THE CURRENT CLINTON PLAN MANY FINANCIAL PROFESSIONALS SAY THEY EXPECT SUCH LIMITATIONS EVENTUALLY ALL WE'VE SEEN IS THE FIRST VOLLEY SAYS MR MULLIN OF DELOITTE & TOUCHE I WOULDN'T BE SURPRISED TO SEE CHANGES HOMEOWNERS WHO HAVE HAD THEIR MORTGAGES FOR A WHILE AND PAID OFF A SIGNIFICANT AMOUNT OF PRINCIPAL MAY FIND THAT THEY WOULDN'T BENEFIT FROM REFINANCING THAT'S BECAUSE ONLY INTEREST ON ORIGINAL ACQUISITION DEBT IS DEDUCTIBLE PLUS 100000 IN A HOME EQUITY LOAN SOME HOMEOWNERS ALSO MAY DISCOVER THAT THE BIGGER MORTGAGE DEDUCTION OFFERS A SMALLER BENEFIT THAN THEY EXPECTED IT MAY LOWER YOUR EFFECTIVE TAX RATE MOVING YOU INTO A LOWER BRACKET AND MAKING THE DEDUCTION LESS VALUABLE SAYS MICHAEL GILIBERTO DIRECTOR OF REAL ESTATE RESEARCH AT SALOMON INC MOST IMPORTANT FINANCIAL ADVISERS SAY IS TO CONSIDER YOUR FINANCIAL SITUATION IF YOU'RE OUT OF POCKET IT'S NOT A TAX SHELTER SAYS WILLIAM G BRENNAN A WASHINGTON DC PARTNER WITH ACCOUNTANTS ERNST & YOUNG YOU HAVE TO BE ABLE TO MAKE MORE THAN THAT MONEY IS GOING TO COST YOU TAXES SHOULDN'T BE THE DRIVING FACTOR IN THE DECISION TO PURCHASE A HOME FINANCIAL PROFESSIONALS SAY THE TAX LAW CAN CHANGE MANY TIMES DURING THE COURSE OF A 30YEAR OR EVEN A 15YEAR MORTGAGE IF YOU'RE BUYING A LARGER HOUSE BECAUSE YOU WANT A LARGER HOUSE THAT'S AN EMOTIONAL ISSUE SAYS MR BRENNAN I DON'T THINK YOU CAN JUSTIFY IT BECAUSE OF TAXES INDEED EVEN ADVOCATES OF BIG MORTGAGES CONCEDE THAT INCREASED BORROWING ISN'T FOR EVERYONE MOST PEOPLE BORROW WHAT THEY NEED AND AS MUCH AS THEY CAN GET JUST TO BUY A HOME FOR MANY PEOPLE IT'S NOT DISCRETIONARY SAYS MR KOCHIS IN SAN FRANCISCO THIS STRATEGY IS GOOD FOR HIGHEND REAL ESTATE BARBARA DONNELLY GRANITO CONTRIBUTED TO THIS ARTICLE 9302260130 930226 BUSINESS BRIEF MEDSTAT SYSTEMS INC HOLDERS APPROVE A MERGER WITH INFORUM IN STOCK SWAP MEDSTAT SYSTEMS INC ANN ARBOR MICH SAID SHAREHOLDERS APPROVED ITS MERGER WITH INFORUM INC IN A STOCK SWAP VALUED AT ABOUT 120 MILLION SHAREHOLDERS AT BOTH HEALTHCARE INFORMATION SERVICES COMPANIES APPROVED CREATING MEDSTAT GROUP AS A HOLDING COMPANY FOR MEDSTAT SYSTEMS AND INFORUM ERNEST G LUDY MEDSTAT'S CHAIRMAN AND CHIEF EXECUTIVE WILL CONTINUE IN THE SAME POSITIONS WITH MEDSTAT GROUP THREE INFORUM DIRECTORS WERE ALSO ADDED TO THE MEDSTAT BOARD INCREASING THE SIZE TO NINE THE NEW BOARD MEMBERS ARE JOHN W LAWLESS FORMER INFORUM CHAIRMAN DONALD M JOHNSTON PRESIDENT AND CHIEF EXECUTIVE OF MASSEY BURCH INVESTMENT GROUP INC AND JOHN A MORRIS JR MANAGING PARTNER OF SIRROM LTD 9302260129 930210 A TRAVELER'S VIEW OF MORALITY AMERICAN DECLINE BY ROBERT L BARTLEY THE DAY BEFORE BILL CLINTON'S PRESIDENTIAL INAUGURATION I GOT ON AN AIRPLANE AND FLEW TO TOKYO IT WAS AN ACCIDENT OF TIMING RATHER THAN A POLITICAL STATEMENT BUT SOMETIMES TRAVEL OFFERS A GLIMPSE OF NOT ONLY OTHER SOCIETIES BUT ALSO YOUR OWN AMERICAN DECLINE HAS BEEN MUCH ON AMERICAN MINDS THESE PAST FEW YEARS BUT BY NOW EVEN THE DIM UNDERSTAND THAT THE JAPANESE BUBBLE HAS BURST WHILE VIGOR AND ENERGY REMAIN EVIDENT TO ANY VISITOR THE TALK OF TOKYO IS DISSOLUTION OF THE SCANDALRIDDEN POLITICAL SYSTEM A SAVVY JAPANESE WILL SPECULATE THAT PRIME MINISTER MIYAZAWA MAY BE ABLE TO HOLD TOGETHER THE LONGDOMINANT LIBERAL DEMOCRATIC PARTY JUST ONE MORE TIME THANKS TO NATIONAL EUPHORIA OVER THE CROWN PRINCE'S ENGAGEMENT AND SUCH IS INTERDEPENDENCE AND THE AMERICAN IMPRINT THAT THE PRINCE'S FIANCEE WENT TO HARVARD AND THE NEW SUMO CHAMPION IS A FORMER HAWAIIAN BASKETBALL PLAYER IN HONG KONG YOU CAN WATCH THE COWBOYS BEST THE BUFFALO BILLS IN REAL TIME AS ROOM SERVICE BRINGS BREAKFAST NEW YORK PRICES FOR PORCELAIN AND ORIENTAL RUGS PROVIDE FURTHER EVIDENCE OF A ONEWORLD ECONOMY AND THE BIG LOCAL ISSUE IS GOVERNOR CHRIS PATTEN'S PUSH FOR MORE DEMOCRACY BEFORE GIVING THE KEYS TO CHINA PART OF THE LOCAL BUSINESS COMMUNITY WISHES HE'D STOP ANNOYING THE TIANANMEN MASTERMINDS IN BEIJING DEALS ARE TO BE MADE AND ANYWAY DEMOCRACY WOULD ONLY MEAN A WELFARE STATE WHICH INTRODUCES THE REASON FOR FLYING HALFWAY AROUND THE WORLD A CONFERENCE IN SINGAPORE ASIAN AND AMERICAN PERSPECTIVES ON CAPITALISM AND DEMOCRACY NOT ONLY HAVE THERE BEEN TROUBLES BETWEEN THIS NEWS ORGANIZATION AND SINGAPORE BUT MINDS AROUND THE WORLD SEE ITS FORM OF GOVERNMENT AS A POTENTIAL ROLE MODEL AS JAPANESESTYLE DIRECTED ECONOMIES WILL OUTPERFORM AMERICAN CAPITALISM THE ARGUMENT RUNS IN THE 21ST CENTURY A QUASIDEMOCRATIC PATERNALISTICALLY AUTHORITARIAN GOVERNMENT WILL OUTPERFORM MESSY AMERICAN DEMOCRACY WHILE BY NO MEANS ABANDONING THAT NOTION SINGAPORE'S DOMINANT PEOPLE'S ACTION PARTY HAS ALSO FOUND THAT TOO HEAVY A HAND DOESN'T HELP ITS DOMESTIC SUPPORT AND IS IN A MOOD TO TALK PHILOSOPHICALLY ABOUT DEMOCRACY AND MEND RELATIONS WITH THE PRESS THE ASIAN WALL STREET JOURNAL IS STILL RESTRICTED TO A SINGAPORE CIRCULATION OF 3500 A CORRESPONDENT IS ALLOWED IN ONLY 14 DAYS A MONTH AND THE FAR EASTERN ECONOMIC REVIEW A SISTER PUBLICATION IS STILL BEING PIRATED UNDER GOVERNMENT LICENSE BUT THE PATTERN IS ONE OF IMPROVEMENT ON THE LARGER QUESTION I DOUBT THAT SINGAPORE'S POLITICAL MODEL WILL PROVE THE WAVE OF THE FUTURE IF ONLY BECAUSE SINCE PLATO PHILOSOPHER KINGS HAVE BEEN FEW AND FAR BETWEEN YET IN THE BID FOR AN ASIAN ALTERNATIVE THERE LIES A TELLING CRITIQUE OF AMERICAN CIVILIZATION IF YOU WILL A COMMENTARY ON AMERICAN DECLINE HOW CAN YOU SNICKER AT US FOR OUTLAWING CHEWING GUM ASKS KISHORE MAHBUBANI A DEPUTY SECRETARY IN SINGAPORE'S FOREIGN MINISTRY WHEN YOU CAN'T RID YOUR OWN STREETS OF CRACK THE POINT IS DELIBERATELY SMARTALECK MR MAHBUBANI HAVING SPENT RECENT YEARS IN NEW YORK AS UN AMBASSADOR BUT IT IS ALSO MORE THAN THAT THE ISSUE NO SMALL ONE IN ANY SOCIETY IS THE BALANCE BETWEEN INDIVIDUAL RIGHTS AND LEGITIMATE COMMUNITY DEMANDS UNLIKE THE SIDEWALKS OF NEW YORK THE STREETS OF SINGAPORE ARE SAFE MR MAHBUBANI CONTINUES CRIMINALS AND DRUG ADDICTS ARE LOCKED UP UNTIL THEY'RE CLEARLY REFORMED WHILE THERE ARE SAFEGUARDS TO PROTECT THE INNOCENT THE INTEREST OF THE MAJORITY IN HAVING SAFE CITY STREETS IS PUT AHEAD OF CONSIDERATIONS OF RIGOROUS DUE PROCESS GIVEN ITS DOMESTIC SCENE AMERICA IS SCARCELY ENTITLED TO SAY THAT AN ASIAN SOCIETY CAN'T CHOOSE A DIFFERENT MIX OF CIVIL LIBERTIES ASIAN CRITICS OF AMERICAN CIVILIZATION HOPE THAT THEIR COMMUNAL TRADITIONS WILL ALLOW THEM TO STRIKE A BETTER BALANCE THEY WOULD LIKE TO PRESERVE NOT ONLY SAFE STREETS BUT FAMILY VALUES THEY FEEL CAPITAL PUNISHMENT HAS A PLACE AND THEY FIND HOMOSEXUALITY PARTICULARLY REPUGNANT AND IN AMERICAN CAMPAIGNS FOR DEMOCRACY AND HUMAN RIGHTS THEY SEE AN IMPERIAL PRESSURE TO IMPOSE AN ULTIMATELY DESTRUCTIVE VERSION OF RAMPANT INDIVIDUALISM THIS CRITICISM IS OF COURSE THE FIRST LINE OF DEFENSE OF EVERY TYRANT PETTY OR MONSTROUS SOME OF THE SINGAPOREANS' ASIAN INVITEES TESTIFY THAT AMERICAN HUMANRIGHTS PRESSURE GOT THEM OUT OF JAIL EVEN SO THE CRITICISM STRIKES A POINT IF AMERICA IS TO DECLINE IT WILL NOT BE BECAUSE OF MILITARY OVERSTRETCH NOR THE TRADE BALANCE JAPANESE MANAGEMENT SECRETS OR EVEN THE FEDERAL DEFICIT IF A DECLINE IS UNDER WAY IT'S A MORAL ONE NOT PETTY MORALITY ABOUT NANNY TAXES BUT THE PROFOUND MORALITY OF WHETHER A COMMUNITY CAN INSIST THAT ITS MEMBERS BEAR CERTAN RESPONSIBILITIES AND ENFORCE THEM WHEN NECESSARY IF THE ASIAN CRITICS MAKE A MISTAKE IT IS UNDERESTIMATING HOW MANY AMERICANS AGREE WITH THEM EVEN IN SINGAPORE ONE AMERICAN WHO LIVES ON CRIMERIDDEN CAPITOL HILL REPORTS HER NEIGHBORS READY FOR MORE COMMUNITY RIGHTS AND A LOT OF AMERICANS WHO FEEL DECLINE HAVE MORALITY IN MIND THE CURRENT STATE OF AMERICAN SOCIETY MAY ALSO BE A STAGE OF DEVELOPMENT AND ASIAN CRITICS MAY UNDERESTIMATE THE FORCES OF AMERICAN RENEWAL STILL AS I RETURN TO AMERICA THE NEW YORK JUDICIARY IS IN THE THROES OF WHETHER TO GIVE LARRY HOGUE WHO HAS TERRORIZED MANHATTAN'S UPPER WEST SIDE HIS 38TH RELEASE FROM PSYCHIATRIC CONFINEMENT WASHINGTON DEBATE RUNS TO NANNIES THE STATUS OF THE FIRST LADY AND GAYS IN THE MILITARY THIS IS ANYTHING BUT A MORAL RENEWAL TO REFUTE THE ASIAN CRITICS BUT IN THE BROADER COUNTRY A MOOD IS BUILDING AND PERHAPS THE CLINTON ADMINISTRATION WILL DO FOR FAMILY VALUES WHAT THE CARTER ADMINISTRATION DID FOR TAX CUTS MR BARTLEY IS EDITOR OF THE JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR GOD AND YOU KNOW WHAT'S RIGHT AND WRONG WSJ FEB 26 1993 9302100010 9302260128 930205 LETTERS TO THE EDITOR PAT'S WAY IS SUICIDE FOR GOP PATRICK J BUCHANAN STILL DOESN'T GET IT DOES HE IN THE EIGHTH PARAGRAPH OF HIS TORTURED PANEGYRIC ABOUT THE SECOND COMING OF THE GOP MR BUCHANAN EXPOSES CHRISTIAN FUNDAMENTALISM'S FATAL LOGICAL PRESUPPOSITIONS THE COMING RESURRECTION OF THE GOP EDITORIAL PAGE JAN 21 WERE I STILL TEACHING PHILOSOPHY I WOULD HOLD THE OFFENDING SENTENCES UP TO MY STUDENTS AS A PRIME EXAMPLE OF A VALID ARGUMENT THAT IS NONETHELESS TOTALLY UNSOUND GAY RIGHTS ACTIVISTS SEEK TO SUBSTITUTE FOR LAWS ROOTED IN JUDEOCHRISTIAN MORALITY LAWS ROOTED IN THE SECULAR HUMANIST BELIEF THAT ALL CONSENSUAL SEXUAL ACTS ARE MORALLY EQUAL THAT BELIEF IS ANTIBIBLICAL AND AMORAL TO WRITE IT INTO LAW IS TO CODIFY A LIE TO BEGIN WITH ANTIHOMOSEXUAL LAWS IN AMERICA ARE NOT ROOTED IN JUDEOCHRISTIAN MORALITY BUT IN THEIR RELIGIONS BEING JESUITTRAINED MR BUCHANAN SHOULD KNOW FULL WELL THAT MORALITY IS DEDUCED FROM SOMETHING PRIOR IT IS THE PRIOR BELIEFS OF JUDEOCHRISTIAN RELIGION FROM WHICH MR BUCHANAN'S MORALITY HAS BEEN DEDUCED THIS IS A CRUCIAL POINT BECAUSE MATTERS OF RELIGIOUS BELIEF ARE NOT MATTERS OF PROVABLE FACT WITHOUT FACT TO UNDERPIN HIS ARGUMENT MR BUCHANAN IS IN NO POSITION TO CONDEMN THE MORAL BELIEFS OF OTHERS AS A LIE THIS LEADS TO THE SECOND GREAT FALLACY OF THE RADICAL RELIGIOUS RIGHT WING IN AMERICA AND MR BUCHANAN BOLDLY LEADS OFF THE VERY NEXT PARAGRAPH WITH ITS FALSE DOGMA ALL CITIZENS ARE EQUAL IN THEIR CONSTITUTIONAL RIGHTS BUT NOT ALL IDEAS OR LIFESTYLES ARE EQUAL SOME ARE WRONG AND SOME ARE RIGHT MR BUCHANAN FUDGES HERE AND HE KNOWS IT SURE SOME IDEAS ARE RIGHT AND SOME ARE WRONG IF YOU'RE DISCUSSING THE PROPER WAY TO BUILD A BRIDGE COOK A PIZZA OR LAUNCH A ROCKET TO MARS BUT AGAIN MATTERS OF MORALITY ARE NOT LIKE THESE AND OTHER MATTERS OF PROVABLE FACT THEREFORE TO EQUATE MATTERS OF PROVABLE FACT WITH MATTERS OF LIFESTYLE MORALITY IS A BLATANT VIOLATION OF THE RULES OF LOGIC AND REASON AS ANY FIRSTYEAR PHILOSOPHY STUDENT COULD TESTIFY THESE NOTIONS THAT JUDEOCHRISTIAN MORALITY AS INTERPRETED BY THE LIKES OF PATRICK J BUCHANAN ARE WHAT EMBARRASS AND ENRAGE FELLOW REPUBLICANS SUCH A HOLY CULTURAL WAR AS HE WANTS TO LEAD IS INTELLECTUALLY DISHONEST AND POLITICALLY SUICIDAL TO MR BUCHANAN'S SURSUM CORDA LIFT UP YOUR HEARTS FELLOW REPUBLICANS LET ME RETORT NEMO DAT QUOD NON HABAT YOU CANNOT GIVE WHAT YOU DO NOT HAVE WILL SOMEBODY PLEASE TELL PAT BUCHANAN THAT THE ELECTION WAS IN NOVEMBER AND THAT THE PRIMARIES WERE OVER LONG BEFORE THAT SOMEBODY ALSO OUGHT TO TEACH HIM SOME MATH AS MUCH AS THE PEROT VOTE WAS NOT A CLINTON VOTE IT MOST CERTAINLY WAS A VOTE AGAINST BUSH AND THE GOP AND TO PANDER TO THE TWO PATS ON THE EXTREME RIGHT AT THE EXPENSE OF MIDDLE AMERICA'S VOTE WILL NOT PRODUCE ELECTION VICTORIES IN 1994 OR '96 I AM ALSO AMAZED AT THE IGNORANCE OF THOSE LIKE MR BUCHANAN WHO GLORIFY THE REAGAN YEARS WITHOUT ACKNOWLEDGING THE FLIP SIDE A DEVASTATED ECONOMIC LANDSCAPE AND AN ALMOST INSURMOUNTABLE DEFICIT WHICH ARE THE DIRECT RESULTS OF UNCONTROLLED DEFENSE SPENDING AND THE JUNKBOND CRAZE OF THE 1980S MR BUCHANAN STILL BELIEVES THAT ALL POLITICAL CONSERVATIVES ARE DEFINED BY ANTIABORTION ANTIGAY AND OTHER LAWS ROOTED IN JUDEOCHRISTIAN MORALITY SUCH A CONCLUSION IF CARRIED INTO POLITICAL PLATFORMS AND GUIDELINES FOR THE 1996 ELECTIONS WILL INCREASINGLY ALIENATE MANY OF US WHO YEARN FOR THE MAINSTREAM AND CRUCIAL CONSERVATIVE PLATFORMS SUCH AS LINEITEM VETOES TERM LIMITS REDUCTION OF ENTITLEMENTS REMOVAL OF DOUBLE TAXATION ON CORPORATIONS SCHOOL CHOICE ETC SEPARATION OF CHURCH AND THE REPUBLICAN PARTY IS AS IMPORTANT AS SEPARATION OF CHURCH AND STATE JACK KEMP AND IRVING KRISTOL UNDERSTAND THIS MR BUCHANAN HAS YET TO LEARN THIS PARADIGM MR BUCHANAN INVOKES THE STORY OF THE JEWISH MONEYCHANGERS WHOM JESUS DROVE FROM THE TEMPLE JOHN 31316 AND STATES THAT THE MODERN MONEYCHANGERS ARE THE LOBBYISTS FOREIGN AND DOMESTICBUYING AND SELLING PUBLIC POLICY IN THE CORRIDORS OF POWERS THE LOBBYISTS ARE THE NEW JEWS WHO ACCORDING TO MR BUCHANAN MUST LIKEWISE BE DRIVEN FROM THE TEMPLE OF AMERICAN POLITICS I WOULD LIKE TO BELIEVE THAT THIS IS AN INNOCENT ALLUSION DEVOID OF ANTISEMITIC INTENT BUT IT IS DIFFICULT COMING FROM A MAN WIDELY ACCUSED OF ANTISEMITISM FOR HIS TELEVISED COMMENTS THAT THE PROISRAEL LOBBY AND ITS AMEN CORNER IN THE US DROVE THIS COUNTRY TO WAR AGAINST SADDAM HUSSEIN HE HAS NEVER SOUGHT TO EXPLAIN OR EXCUSE THIS UNFOUNDED CHARGE NOR HAS HE MODERATED HIS RHETORIC OUT OF CONSIDERATION FOR JEWISH SENSIBILITIES TO THE CONTRARY HE APPARENTLY DELIGHTS IN OUTRAGING JEWS WITH HIS INFLAMMATORY REMARKS IF THIS IS THE WAY MR BUCHANAN SEEKS TO RESURRECT THE GOP LET US HOPE THAT HIS EFFORT FAILS AND THAT THE GOP REPUDIATES HIM AND EVERYTHING HE STANDS FOR WAKE UP AND SMELL THE COFFEE WE LOST THIS ELECTION BECAUSE WE PAID A LOT MORE ATTENTION TO PEOPLE'S OPINIONS ON ABORTION WOMEN'S RIGHTS AND GAY RIGHTS THAN WE DID TO PEOPLE THEIR NEED FOR WORK AND THE STATE OF THE ECONOMY I HAVE BEEN A REPUBLICAN ALL MY VOTING LIFE I HAVE BEEN A CONTRIBUTOR TO THE PARTY A CAUCUS CONVENER AND A DELEGATE TO OUR STATE CONVENTION UNTIL THIS PARTY CAN SHOW ME IT'S MORE INTERESTED IN HOW OUR COUNTRY IS RUN THAN HOW PEOPLE FEEL ABOUT ABORTION I AM THROUGH CONTRIBUTING EITHER MY MONEY OR MY TIME TO THE PARTY AS FOR ACOLYTES OF GAY RIGHTS IMPOSING THEIR VALUES ON OUR CHILDREN I CERTAINLY DON'T WANT MY TAX DOLLARS GOING TO RELIGIOUS SCHOOLS IN THE FORM OF TAX VOUCHERS TO TEACH YOUNG PEOPLE THAT THERE IS A CULTURAL WAR AGAINST THE ABOMINATION OF HOMOSEXUALS IF YOU ARE HAPPY TO TAKE MY TAX DOLLARS TO PAY FOR THE EDUCATION OF YOUR CHILDREN IT SEEMS A VERY SMALL REQUEST THAT WE TEACH THEM TO RESPECT THEIR FELLOW CITIZENS AND NOT VOICE THEIR DISAPPROVAL OF MY ANTIBIBLICAL AND AMORAL LIFESTYLE WITH BASEBALL BATS AND GUNS IF MR BUCHANAN WANTS TO TEACH HIS CHILDREN TO HATE AND REVILE ME LET HIM DO IT ON HIS OWN NICKEL NOT MINE TO DISMISS THE GRIEVANCES OF GAY PEOPLE ON THE BASIS OF SPECIAL RIGHTS IS AN OUTRAGE WE ARE BEATEN IN THE STREET DISMISSED FROM OUR JOBS AND DENIED BASIC RIGHTS OF CITIZENSHIP ALL ON THE BASIS OF OUR LIFESTYLE CHOICE GAY PEOPLE DON'T NEED LEGAL PROTECTION BECAUSE OF OUR LIFESTYLE SUPPOSED CHOICE OR PRIVATE SEXUAL BEHAVIOR WE NEED IT BECAUSE OF THE PERVASIVE HATRED AND PERSECUTION VISITED UPON US BY STRAIGHT PEOPLE ONCE YOU STOP TREATING US AS A SPECIAL CLASS WE WILL NOT NEED LEGAL PROTECTIONS AS A CONSERVATIVE REPUBLICAN WHO AGREES WITH MR BUCHANAN ON MANY ISSUES I FOUND HIS ARTICLE THE PERFECT EXPLANATION OF WHY PRESIDENT BUSH WASN'T REELECTED MR BUCHANAN SAYS THAT IT WAS ONLY THE CONSERVATIVE FACTION OF THE GOP THAT STUCK WITH PRESIDENT BUSH THROUGH THE ELECTION HE WAS WRONG AND SINCE HE HIMSELF WAS THE FORCE OF DIVISION HE SHOULD REALIZE IT THROUGHOUT THE PRIMARIES IT WAS MR BUCHANAN WHO TOLD CONSERVATIVES THAT THEY COULDN'T AND SHOULDN'T SUPPORT PRESIDENT BUSH HE MADE OPPOSITION TO THE PRESIDENT NOT ONLY A VIABLE OPTION BUT A MORAL IMPERATIVE FOR CONSERVATIVES NOW HE IS DOING THE SAME THING BY SLAMMING JACK KEMP AND WILLIAM BENNETT'S NEW ORGANIZATION EMPOWER AMERICA AS JUST ANOTHER PROABORTION FACTION IN THE GOP IN HIS ESSAY MR BUCHANAN DOESN'T EVEN MENTION FORMER EDUCATION SECRETARY BENNETT WHO WE CAN BE ASSURED WILL NOT LET EMPOWER AMERICA ENDORSE THE PLANNED PARENTHOOD WING AND AFTER A SNIDE COMMENT THAT IT IS FREEDOM THAT EMPOWERS PEOPLE NOT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HE DERIDES FREE TRADE AND DEFENDS THE PROTECTIONISM THAT ALLOWED DETROIT TO PUT OUT LOUSY AUTOMOBILES THE ISSUE THAT DROVE MANY BUCHANANITES TO ROSS PEROT AND NOT PRESIDENT BUSH IN THE GENERAL ELECTION IS MR BUCHANAN PRIMING HIMSELF FOR A 1996 BID BY BEGINNING AN EARLY ATTACK ON FORMER SECRETARY KEMP CONSERVATIVE SUCCESS DEPENDS ON UNITY NOT THE DIVISIVENESS THAT MR BUCHANAN IS SO QUICK TO SPREAD MR BUCHANAN'S INSIGHTFUL ARTICLE WAS DEADON ABOUT THE FUTURE OF THE GOP HE CORRECTLY NOTES THAT ROBERT DOLE WARREN RUDMAN AND MESSRS KEMP AND KRISTOL ARE ALL MISREADING THE ELECTION RESULTS FALLING PREY TO THE ALLTOOCONVENTIONAL WISDOM OF THE MAJOR MEDIA FOLLOWING THE CRUSHING DEFEAT OF ALF LANDON A BIG GOVERNMENT CONSERVATIVE RUNNING AGAINST FDR THE ESTIMABLE HL MENCKEN OBSERVED OF LANDON HE SIMPLY SURRENDERED TO THE ENEMY AND FROM THAT TIME ON HIS CAMPAIGN WAS DEAD THE MORAL REPUBLICANS MUST NOT GIVE UP REPUBLICAN ISSUES AND VALUES TO APPEAL TO A POLLSTER'S MEDIAN ON THE POLITICAL SPECTRUM RATHER AS MR BUCHANAN STATES WE SHOULD GET BACK TO OUR ROOTS AGAINST WASHINGTON AND BIG GOVERNMENT FOR ECONOMIC GROWTH LOW TAXES TRADITIONAL VALUES EQUALITY OF OPPORTUNITY THE NEXT FOUR YEARS SHOULD PROVIDE A STARK CONTRAST TO THESE PRINCIPLES SEE RELATED LETTERS LETTERS TO THE EDITOR GOD AND YOU KNOW WHAT'S RIGHT AND WRONG WSJ FEB 26 1993 9302050116 9302260127 930226 ENTERPRISE FOR MARKETERS FIRST PET IS THE CAT'S MEOW BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL CHELSEA CLINTON HAS HER OWN ECONOMIC STIMULUS PACKAGE SOCKS HER CAT NOT SINCE GARFIELD MADE HIS CARTOON DEBUT HAVE SO MANY RETAILERS AND CAT BOUTIQUES OWED SO MUCH TO SO FAMOUS A FELINE BLOOMINGDALE'S TOUTS SOCKS DESIGNER PINS BY CAROLEE AS PURRFECT GIFTS FOR CAT LOVERS KENSINGTON PUBLISHING CO'S ZEBRA BOOKS HAS RUSHED OUT COPIES OF A 495 PAPERBACK BY NEW YORKER CARTOONIST MORT GERBERG CALLED FIRST FELINE THE COVER BOASTS A BLURB FROM THE BUSH FIRST DOG MILLIE READ MY LIPS DISGUSTING AND BELVEDERE PRESS IN ARLINGTON VA WHISKED TO STORES BRIGHT RED WHITE AND BLUE BUMPER STICKERS THAT PROCLAIM AMERICA ROCKS WITH SAX AND SOCKS AT THE OFFICIAL INAUGURAL MEMORABILIA STORE IN WASHINGTON DC HALF THE PEOPLE WHO COME IN ASK EXPLICITLY FOR ANYTHING WITH SOCKS ON IT SAYS STEPHANIE HELD THE STORE'S CREATIVE DIRECTOR SHE SAYS THE ENTIRE STOCK OF 1500 18 SOCKS ON SAX TSHIRTS SOLD OUT IN ABOUT FIVE WEEKS BUT STREET VENDORS CONTINUE TO DO A BRISK BUSINESS WITH COPYCAT VERSIONS AT THE NEW YORK OUTLET OF BLOOMINGDALE'S THOUSANDS OF THE CAROLEE CAT PINS HAVE FLOWN OUT OF THE STORE SAYS CYNTHIA VIGGIANNO THE STORE MANAGER THE BLACKENAMELED SOCKS CAT PIN WITH WHITEENAMELED PAWS AND AN AUSTRIAN CRYSTAL COLLAR SELLS FOR 45 CAROLEE'S COOL CAT PIN A SOCKS LOOKALIKE THAT SPORTS SUNGLASSES AND PLAYS THE SAX IS A NEIMAN MARCUS EXCLUSIVE AND SELLS FOR 60 ACCORDING TO CAROLEE SALES OF HER SCAREDY CAT CURIOUS CAT BASHFUL CAT AND OTHER CAT PINS HAVE RISEN 15 TO 20 SINCE SHE LAUNCHED THE SOCKS AND COOL CAT VERSIONS WESTIN HOTELS & RESORTS IS RIDING THE FIRST CAT'S TAIL TO DRUM UP PUBLICITY FOR ITS WASHINGTON ANA HOTEL AND RAISE MONEY FOR THE HUMANE SOCIETY OF THE UNITED STATES WITH A SOCKS LOOKALIKE CONTEST MORE THAN 600 CAT OWNERS HAVE ALREADY CALLED FROM AS FAR AWAY AS TOKYO AND SWEDEN AND ACTUAL ENTRIES TOP 100 THE WINNING CAT WILL RECEIVE A CUSTOMMADE WHITE HOUSE CAT BED A SHOPPING SPREE AT BONE JOUR PET BOUTIQUE IN BETHESDA MD AND A FOURNIGHT STAY IN THE HOTEL'S PRESIDENTIAL SUITE A 10 ENTRY FEE GOES TO THE HUMANE SOCIETY CAT BOUTIQUES ARE ESPECIALLY BUSY WE FELT IT THE DAY AFTER THE ELECTION SAYS PAM GIBSON OWNER OF CAT'S MEOW IN PORTLAND ORE SINCE THEN SALES HAVE JUMPED AND CUSTOMERS HAVE GOBBLED UP MORE THAN 450 PRINTS OF SOCKS POSED IN FRONT OF THE WHITE HOUSE THE PORTRAITS WHICH COME IN TWO SIZES SELL FOR 16 AND 25 KITTY KITTY KITTY IN LITTLE ROCK ARK SAW SALES JUMP 30 FROM A YEAR BEFORE MARGARET BRIDWELL THE SHOP'S OWNER AND A PARTTIME CATERER TO THE PET NEEDS OF SOCKS'S FAMOUS 12YEAROLD OWNER CHELSEA SAYS IT'S KIND OF SHOCKING TO ME CAT CONNECTION IN DALLAS A COMBINATION CATGOODS STORE AND KENNEL NOTES THAT IT IS ALSO A BIT AMEWSED WITH THE BUSINESS BOOM PERHAPS MOST SURPRISING IS THE POPULARITY OF ITS COURSE TLC FOR YOUR CAT LANA FRALEY THE STORE'S OWNER IS THE COURSE INSTRUCTOR INTEREST IN THE CLASS HAS PROBABLY TRIPLED IN THE PAST FEW MONTHS TO MORE THAN 150 STUDENTS SHE SAYS STREET KIDS INC A CULVER CITY CALIF RETAILER OF CHILDREN'S GOODS REPORTS HOT DEMAND FOR A LINE OF PRODUCTS RANGING FROM 299 SOCKS KEY RINGS TO 20 PLUSH STUFFED SOCKS LOOKALIKES SOCKS HAS ALSO BECOME AN ATTENTIONGETTING COVER CAT FOR PUBLICATIONS WHILE NEWSWEEK AND PEOPLE TRIED TO BOOST CIRCULATION WITH COVER SHOTS OF HILLARY RODHAM CLINTON CATS MAGAZINE SOUGHT TO RAISE ITS READERSHIP BY MAKING SOCKS ITS JANUARY COVERBOY SLICK TIMES A QUARTERLY LAMPOON OF THE CLINTON PRESIDENCY DEVOTES ONE PAGE OF EACH ISSUE TO CATNIPPIN' WITH SOCKS A CAT'S EYE VIEW OF THE WHITE HOUSE THE 10000COPY INAUGURAL PRINTING SOLD OUT IN NINE DAYS CARTOONIST BERKE BREATHED IS ALSO CAPITALIZING ON 1600 PENNSYLVANIA AVE'S LATEST FELINE IN HIS SUNDAY OUTLAND STRIP SOCKS RUNS AWAY FROM THE WHITE HOUSE LEAVES CHELSEA IN TEARS AND FLEES TO CUPID CUDDLE CABINS IN NIAGARA FALLS TO ELOPE WITH BILL THE CAT THOMASSONGRANT INC A CHARLOTTESVILLE VA PUBLISHER HAS JUST RUSHED OUT 20000 COPIES OF A CARTOON BOOK CALLED SOCKS GOES TO WASHINGTON THE DIARY OF AMERICA'S FIRST CAT BY MICHAEL O'DONOGHUE AND JC SUARES VENDORS ARE ALSO SELLING HAIL TO THE CAT TSHIRTS WITH PHOTOS OF THE REAL SOCKS SNAPPED BY NEWS HOUNDS AFTER THE THEN FIRSTCATELECT WAS LURED INTO PUBLIC WITH CATNIP PHOTOGRAPHERS GREG GIBSON OF THE ASSOCIATED PRESS AND CLIFF OWEN OF UNITED PRESS INTERNATIONAL HAVE JOINTLY SOLD MORE THAN 350 COPIES OF JOKE SOCKS TSHIRTS TO THE PRESS AND PRESIDENT CLINTON'S STAFF ON A WHIM THEY SENT THREE OF THE SHIRTS TO THE PRESIDENT WHO HAD ANGRILY DECLARED A PAW'SOFF SOCKS POLICY AFTER THE CATNIPINDUCED PHOTO OP I UNDERSTAND THAT THEY WERE WELL RECEIVED MR GIBSON SAYS WHY SUCH CATACLYSMIC INTEREST LAST OCTOBER IN ATLANTA EMPLOYEES OF HJ HEINZ CO THE CREATOR OF MORRIS THE 9LIVES CAT ASKED 500 PEOPLE AT A CONSUMER EXPO WHICH ANIMAL WOULD MAKE THE BEST FIRST PET PRESIDENT AND MRS BUSH'S DOG MILLIE ROSS PEROT'S DOG ANNIE OR THE CLINTONS' CAT THE SURVEY FOUND THAT 46 FAVORED SOCKS 38 WANTED MILLIE AND 15 BACKED ANNIE MANY CAT LOVERS THOUGH POINT TO A DIFFERENT SET OF NUMBERS TO EXPLAIN WHY SOCKS IS SUCH A CONSUMER DARLING CATS HAVE RECENTLY BECOME AMERICA'S PET OF CHOICE ACCORDING TO THE AMERICAN VETERINARY MEDICAL ASSOCIATION THERE ARE NOW 60 MILLION CATS AND ONLY 55 MILLION DOGS ONE OF THOSE PROFITING FROM SOCKS MANIA HOWEVER BELIEVES THAT CAT OWNERS SHOULDN'T GET ALL THE CREDIT CAROLINE JACKSON PRESIDENT OF BELVEDERE PRESS SAYS THAT FORMER FIRST LADY BARBARA BUSH WHOSE BESTSELLING BOOK ABOUT PET MUTT MILLIE REAPED 890000 IN ROYALTIES ACTUALLY PAVED THE WAY FOR THE SUCCESS OF SOCKSRELATED PRODUCTS I THINK BARBARA BUSH DID A GREAT SERVICE TO ANIMAL LOVERS BECAUSE NOW IT SEEMS THAT THE COUNTRY NEEDS A FIRST PET SAYS MS JACKSON WHOSE COMPANY HAS SOLD MORE THAN 2500 OF ITS SOCKS BUMPER STICKERS MS JACKSON ADDS THAT BETHANN THORNBURG THE NIECE OF FORMER BUSH ATTORNEY GENERAL RICHARD THORNBURG DESIGNED THE SOCKS BUMPER STICKERS THERE IS A SERIOUS SIDE TO THE SOCKS HYPE TWO LIFELONG DEMOCRATS STARTED THE PRESIDENTIAL SOCKS PARTNERSHIP IN ARLINGTON VA TO SELL SOCKS PRODUCTS AND WILL DONATE AT LEAST 10 OF ANY PROFITS TO THE CHILDREN'S DEFENSE FUND AND OTHER CHARITIES THE PARTNERSHIP'S SOCKS THE CAT NEWSLETTER FOR CHILDREN COVERS GOOD DEEDS THE COUNTRY'S CHILDREN DO FOR EACH OTHER TO EDUCATE THE PUBLIC ABOUT THE NEEDS OF CATS THE NATION'S FOUR LARGEST ANIMAL PROTECTION ORGANIZATIONS HAVE UNITED TO PROCLAIM 1993 THE YEAR OF THE CAT RICIA FORKAN EXECUTIVE VICE PRESIDENT OF THE HUMANE SOCIETY SAYS THAT THE CLINTON CAT IS VERY WELL TAKEN CARE OF SOCKS IS DEFINITELY PART OF THE FAMILY SHE SAYS AND WHAT DOES SOCKS THINK OF ALL THE HOOPLA HE'S ABSOLUTELY UNAVAILABLE FOR COMMENT INSISTS WHITE HOUSE SPOKESMAN NEIL LATTIMORE SOCKS IS A VERY PRIVATE CAT 9302260126 930226 BUSINESS BRIEF PENNEY'S 4THQUARTER NET ROSE SHARPLY AFTER RESTRUCTURING STOCK JUMPS 31 PLANO TEXAS JC PENNEY CO GOT A QUICK PAT ON THE BACK FROM THE MARKET AFTER REPORTING STRONGERTHANANTICIPATED EARNINGS FOR THE COMPANY'S FISCAL FOURTH QUARTER ENDED JAN 30 THE RETAILER REPORTED RECORD NET INCOME OF 375 MILLION OR 285 A SHARE FOR THE QUARTER UP SHARPLY FROM YEAREARLIER NET OF 37 MILLION OR 25 CENTS A SHARE THE EARLIER RESULTS REFLECTED 264 MILLION OR 203 A SHARE IN RESTRUCTURING CHARGES THAT RESTRUCTURING IN WHICH PENNEY CONSOLIDATED OPERATIONS DISCONTINUED CERTAIN EXPERIMENTAL OPERATIONS AND WROTE DOWN SOME REALESTATE PROJECTS FOLLOWED A DECISION TO FOCUS ON LOWER PRICE POINTS THE STRATEGY HAS PROVED FRUITFUL WITH PENNEY'S REPORTING FOUR CONSECUTIVE QUARTERS OF SALES AND EARNINGS GAINS ON RELEASE OF THE LATEST RESULTS PENNEY'S SHARES CLIMBED THE STOCK WAS QUOTED AT 7825 UP 2375 IN NEW YORK STOCK EXCHANGE TRADING LATE YESTERDAY SALES FOR THE LATEST 14WEEK QUARTER GREW 13 TO 608 BILLION FROM 537 BILLION FOR THE 13WEEK YEAREARLIER PERIOD WAYNE HOOD AN ANALYST AT PRUDENTIAL SECURITIES RESEARCH SAID THE COMPANY IMPROVED ITS GROSS MARGINS TIGHTENED CONTROL OVER INVENTORY AND WAS ABLE TO TAKE FEWER MARKDOWNS DURING THE QUARTER HE ALSO PRAISED PENNEY'S PRIVATELABEL PROGRAM WHICH GENERALLY PROVIDES BETTER MARGINS FOR THE COMPANY THAN NAMEBRAND LABEL GOODS THEY'VE IMPROVED THE QUALITY AND THE FASHIONABILITY IS THE BEST THEY'VE EVER HAD HE SAID FOR THE 53WEEK FISCAL YEAR ENDED JAN 30 PENNEY POSTED NET INCOME OF 777 MILLION OR 590 A SHARE COMPARED WITH 80 MILLION OR 39 CENTS A SHARE FOR THE 52WEEK YEAR EARLIER EARLIER RESULTS INCLUDED A CHARGE OF 448 MILLION OR 361 A SHARE FOR RESTRUCTURING COSTS AND THE EFFECTS OF AN ACCOUNTING CHANGE SALES FOR THE YEAR GREW 11 TO 1801 BILLION FROM 1620 BILLION 9302260125 930226 CIS TECHNOLOGIESEDS ACCORD TULSA OKLA CIS TECHNOLOGIES INC SAID IT SIGNED A 10YEAR AGREEMENT WITH ELECTRONIC DATA SYSTEMS CORP TO PROVIDE ELECTRONIC CLAIMSPROCESSING FOR THE MARYLAND HEALTH INFORMATION NETWORK OPERATED BY EDS TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT CIS WHICH PROVIDES REIMBURSEMENT MANAGEMENT SERVICES WILL BE THE CLEARINGHOUSE FOR ALL HOSPITAL AND HOSPITALBASED PHYSICIAN CLAIMS USING THE STATEWIDE NETWORK THE NETWORK IS INTENDED FOR USE BY PAYERS DOCTORS HOSPITALS AND OTHER HEALTH PROVIDERS WHO CAN ELECTRONICALLY FILE INSURANCE CLAIMS AND SWAP HEALTH INFORMATION EARLIER THIS WEEK EDS THE COMPUTERSERVICES SUBSIDIARY OF GENERAL MOTORS CORP SAID IT AGREED TO TAKE OVER THE OPERATIONS OF BLUE CROSS AND BLUE SHIELD OF MARYLAND'S LIFECARD ELECTRONICS CLAIMS DIVISION THE COMPANY SAID IT WOULD UPGRADE LIFECARD'S CLAIMSPROCESSING SYSTEM AND USE IT IN THE NETWORK 9302260124 930226 CYPRUS MINERALS PLANS INVESTMENT TO INCREASE OUTPUT BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER CYPRUS MINERALS CO SAID IT WILL BOOST BOTH ITS EXPLORATION AND CAPITAL BUDGETS FOR 1993 AS THE COMPANY SEEKS TO SUBSTANTIALLY INCREASE ITS PRODUCTION OF COAL AND COPPER AND TO LOOK FOR BETTER GOLD RESERVES SAID MILTON H WARD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MINING COMPANY WILL SPEND ABOUT 275 MILLION ON CAPITAL IMPROVEMENTS IN 1993 HE SAID UP 76 FROM ABOUT 156 MILLION IN 1993 AND CYPRUS WILL SPEND ABOUT 29 MILLION IN EXPLORING FOR GOLD AND COPPER IN 1993 UP 51 FROM ABOUT 192 MILLION IN 1992 HE SAID FURTHER HE SAID THE COMPANY WANTS TO INCREASE ITS DIVIDEND WHICH IS 20 CENTS A QUARTER AND WILL BE STUDYING ITS CASH FLOW NEEDS TO DETERMINE WHEN IT CAN BOOST THE QUARTERLY PAYOUT IN DECEMBER THE COMPANY PAID AN EXTRA DIVIDEND OF FIVE CENTS A SHARE TO SEND A SIGNAL THAT SAYS WE WANT TO DO IT AND WE ARE LOOKING AT IT HE SAID MR WARD ALSO SAID CYPRUS HAS REEVALUATED THE COPPER PRICE AND THE CASH COSTS IT USES TO CALCULATE ITS COPPER RESERVES LARGELY DUE TO THAT CHANGE THE COMPANY'S MINABLE COPPER RESERVES ROSE TO 27 BILLION TONS AVERAGING 035 COPPER AT THE END OF 1992 FROM 15 BILLION TONS AT 041 COPPER AT THE END OF 1991 MR WARD ALSO SAID HE PLANS TO REDUCE COPPER PRODUCTION COSTS BY FOUR CENTS TO FIVE CENTS A POUND IN 1993 THROUGH COST REDUCTION PROGRAMS ALREADY IN PLACE IN 1992 THE COMPANY'S CASH COST OF PRODUCING COPPER WAS 72 CENTS A POUND CYPRUS'S 19921994 CAPITAL EXPENDITURE PLAN FOR COPPER WHICH IS EXPECTED TO BE 308 MILLION IS AIMED AT REDUCING THAT COST TO ABOUT 58 CENTS A POUND BY THE END OF 1994 HE SAID THE COMPANY WILL SEEK TO INCREASE ITS PRODUCTION OF COPPER TO ABOUT ONE BILLION POUNDS A YEAR FROM ABOUT 675 MILLION POUNDS IN 1993 THROUGH MINE EXPANSIONS MR WARD SAID CYPRUS IS ALSO LOOKING AT MAKING ACQUISITIONS THAT WOULD ADD HIGHERGRADE AND LOWERCOST RESERVES TO ITS COPPER BASE HE SAID CYPRUS ALSO WANTS TO INCREASE ITS COAL PRODUCTION THROUGH PURCHASES OF EXISTING MINES OR RESERVES NEAR ITS CURRENT FACILITIES HE SAID CYPRUS WILL PRODUCE ABOUT 21 MILLION TONS OF COAL IN 1993 HE SAID AND HOPES TO INCREASE THAT TO 40 MILLION TONS IN FIVE YEARS BECOMING ONE OF THE NATION'S TOP FIVE COAL PRODUCERS EVEN THOUGH COAL DOESN'T PROVIDE THE HIGH MARGINS THAT COPPER PRODUCTION DOES RIGHT NOW MR WARD SAID HE WANTS TO BUILD THE COAL BUSINESS AT CYPRUS TO PROVIDE A STEADY BASE THAT WILL TAKE CARE OF OUR DIVIDEND AND EXPLORATION PROGRAM EVEN IF COPPER PRICES DROP THREE NEW BOARD MEMBERS HAVE BEEN ADDED OVER THE PAST FEW MONTHS TO BOOST THE BOARD'S EXPERTISE IN COSTCONTROL INTERNATIONAL OPERATIONS AND INVESTOR RELATIONS HE SAID THE NEW BOARD MEMBERS WILL REPLACE THREE RETIRING BOARD MEMBERS WHO HAVE HIT CYPRUS'S MANDATORY RETIREMENT AGE OF 70 THEY WILL LEAVE IN MAY 9302260123 930226 THE AMERICAS THE WAR'S OVER BUT EL SALVADOR STILL FIGHTS PROPAGANDA BATTLE BY DAVID ASMAN EL MOZOTE EL SALVADOR THIS COUNTRY IS IN THE MIDST OF AN ECONOMIC AND CULTURAL REBIRTH WHILE SOME OF EL SALVADOR'S CENTRAL AMERICAN NEIGHBORS MOST NOTABLY NICARAGUA CONTINUE TO EXPERIENCE A DEPRESSING DIASPORA DUE TO LINGERING WAR CORRUPTION AND STATIST ECONOMIC POLICIES THOUSANDS OF SALVADORANS WHO HAD LEFT FOR THE US ARE RETURNING HOME NOW WITH CAPITAL AND NEWFOUND EXPERTISE SWORN ENEMIES FROM THE MARXIST GUERRILLAS AND THE LEGITIMATE POLITICAL ESTABLISHMENT ARE BEGINNING TO TALK ALBEIT HALTINGLY ABOUT REBUILDING THE COUNTRY THE CAPITAL CITY OF SAN SALVADOR IS BURSTING WITH TRAFFIC JAMS OFFICE CONSTRUCTION AND NEAT MIDDLECLASS RESIDENTIAL COMMUNITIES THAT ARE SOLD OUT BEFORE CONSTRUCTION CAN BE COMPLETED BUT IF SAN SALVADOR HAS BECOME A LIVING SYMBOL OF THE COUNTRY'S COMEBACK SPIRIT THE TINY HAMLET OF EL MOZOTE IN THE BARELY ACCESSIBLE HIGHLANDS OF EASTERN EL SALVADOR HAS BECOME A SYMBOL OF THE HORRORS OF A DIVISIVE WAR THE DEEP WOUNDS OF WHICH WILL HAVE TO HEAL BEFORE THE RULE OF LAW IS ACCEPTED BY ALL HINDERING THAT HEALING PROCESS IS THE FACT THAT EL MOZOTE HAS BECOME THE BATTLEGROUND OF AN INTERNATIONAL PROPAGANDA WAR IN WHICH TRUTH AND JUSTICE ARE SECONDARY CONSIDERATIONS EL MOZOTE FIRST ENTERED INTERNATIONAL CONSCIOUSNESS THROUGH NEWSPAPER ACCOUNTS OF A MASSACRE THAT ALLEGEDLY TOOK PLACE THERE IN DECEMBER 1981 ONE MONTH LATER REPORTERS FROM THE NEW YORK TIMES AND THE WASHINGTON POST WERE INTRODUCED TO SURVIVORS OF THE MASSACRE BY MARXIST GUERRILLA GUIDES THE REPORTERS ALSO SAW SCORES OF PUTREFIED BODIES SCATTERED AROUND EL MOZOTE AND SURROUNDING VILLAGES MANY OF THE DEAD WERE WOMEN AND CHILDREN THE GUERRILLAS AND THEIR SUPPORTERS CLAIMED THAT MORE THAN 700 DEFENSELESS CIVILIANS WERE MASSACRED BY GOVERNMENT TROOPS IN A NONCOMBAT ZONE LATER THIS FIGURE WAS INCREASED TO ABOUT 1000 BY VIRULENTLY ANTIGOVERNMENT HUMAN RIGHTS ORGANIZATIONS IN SAN SALVADOR SALVADORAN AND US GOVERNMENT OFFICIALS QUESTIONED BOTH THE NUMBER OF CIVILIANS KILLED WHICH THEY SAY EXCEEDED THE NUMBER OF PEOPLE WHO LIVED IN THE AREA AND THE ASSUMPTION THAT ALL WERE MASSACRED BY THE ARMY CLEARLY THE TIME TO HAVE INVESTIGATED THE VERACITY OF CLAIMS ON BOTH SIDES WAS IN 1982 HOWEVER DUE TO GUERRILLA CONTROL OF THE AREA THOROUGH INVESTIGATIONS WERE IMPOSSIBLE AND THE TRUTH OF EL MOZOTE BECAME OBSCURED BY PROPAGANDA ALMOST 10 YEARS LATER RUFINA AMAYA THE LEADING WITNESS INTERVIEWED BY REPORTERS IN 1982 FILED CHARGES WITH THE DISTRICT JUDGE RESPONSIBLE FOR EL MOZOTE AND DEMANDED A FULL INVESTIGATION OF THE MASSACRE MRS AMAYA'S CHARGES WERE FILED JUST BEFORE THE 10YEAR STATUTE OF LIMITATIONS WOULD HAVE TAKEN EFFECT BUT INVESTIGATING THE SCENE AFTER 10 YEARS POSED EXTRAORDINARY CHALLENGES EVEN A FOURWHEELDRIVE VEHICLE HAS GREAT DIFFICULTY NEGOTIATING THE MOUNTAIN ROADS THAT LEAD INTO THE AREA AND IN THE RAINY SEASON EL MOZOTE IS VIRTUALLY INACCESSIBLE BY CAR NEVERTHELESS THE LONGDESERTED KILLING FIELDS WERE SOON FILLED WITH INVESTIGATORS IN ADDITION TO AN INVESTIGATION CONDUCTED BY LOCAL REPRESENTATIVES OF THE SALVADORAN SUPREME COURT TEAMS OF FORENSIC DOCTORS ANTHROPOLOGISTS AND CRIMINOLOGISTS ARRIVED FROM AROUND THE WORLD EVEN SCOTLAND YARD WAS CALLED IN TO HELP ON THE ROAD TO EL MOZOTE SIGNS OF THE REBEL CONTROL OF THE AREA STILL PREDOMINATE FMLN GUERRILLA PROPAGANDA IS CAREFULLY PAINTED ON BUILDINGS CHILDREN ARE SEEN WEARING FMLN CAPS TWO BLOND INTERNATIONALIST WOMEN WITH TIEDYED SHIRTS TRY UNSUCCESSFULLY TO BLEND IN WITH THE SALVADORAN PEASANTS AND AT THE ENTRANCE TO EL MOZOTE A NEW PROFESSIONALLY LITHOGRAPHED SIGN ANNOUNCES THE MASSACRE OF MORE THAN 1000 PEASANTS EL MOZOTE ITSELF RESEMBLES MORE AN ARCHAEOLOGICAL DIG THAN THE SCENE OF A CRIME FRESHLY DUG SITES ARE FENCED OFF WITH TWINE STRUNG ON TWIGS THAT DESIGNATE NEAT GEOMETRIC PLOTS IT'S CLEAR THAT FIERCE FIGHTING OF SOME KIND TOOK PLACE HERE BULLET HOLES INDICATING GUNSHOTS FROM ALL ANGLES RIDDLE THE FEW STANDING WALLS OF THE HAMLET'S NINE BURNEDOUT STRUCTURES GAPING HOLES ARE FOUND IN SOME WALLS IN ADDITION TO SMALLER HOLES THAT APPEAR TO HAVE BEEN CHIPPED OUT AS GUN PORTS AND BULLET HOLES ARE CLEARLY VISIBLE ON THE FLOORS OF AT LEAST TWO BUILDINGS AS IF SOMEONE HAD BEEN FIRING DIRECTLY INTO BODIES PILED ON THE FLOOR OF THE DOZEN SITES IN EL MOZOTE WHERE MRS AMAYA CLAIMED BODIES WOULD BE FOUND FOUR SITES HAVE BEEN EXCAVATED OF THESE JUST TWO HAVE YIELDED REMAINS IN SITE TWO ONE SKELETON WAS FOUND BUT THE FINDINGS AT SITE ONE WERE HORRIFIC IN A SMALL 10BY20 CONVENT ADJACENT TO A CHURCH 143 SKELETAL REMAINS WERE FOUND BURIED UNDER THE COLLAPSED ROOF AND WALLS OF THE PARTIALLY BURNEDOUT STRUCTURE OF THE REMAINS FOUND IT WAS DETERMINED THAT 136 WERE CHILDREN MOST APPEARED TO HAVE BEEN KILLED BY HIGHVELOCITY WEAPONS ABOUT 150 M16 AND A FEW AK47 SHELL CASINGS WERE FOUND NEARBY WHILE IT APPEARS THAT A MASSACRE OF SOME KIND TOOK PLACE QUESTIONS REMAIN HAD EL MOZOTE BEEN A WAR ZONE BEFORE THE KILLING OF INNOCENTS BEGAN WERE THERE AS MANY KILLED AS THE GUERRILLAS AND OTHERS CLAIM WHO WERE THE TRUE PERPETRATORS OF THIS AWFUL CRIME CLYDE COLLINS SNOW IS A WORLDRENOWNED FORENSIC ANTHROPOLOGIST WHO WAS CALLED IN BY THE UNITED NATIONS PEACE COMMISSION TO HELP THE GOVERNMENT WITH ITS INVESTIGATION I TRY TO KEEP AN OPEN MIND TILL ALL THE EVIDENCE IS IN SAYS MR SNOW YOU HAVE A SINGLE LIVING WITNESS AND YOU HAVE ACCOUNTS ON BOTH SIDES THE HUMAN RIGHTS GROUPS TEND TO HAVE THEIR OWN AGENDAS SO THEY TEND TO GIVE YOU FIGURES ON THE HIGH SIDE ON THE OTHER EXTREME YOU HAVE THE GOVERNMENT PEOPLE WHO SAY NOBODY WAS KILLED HOWEVER I CAN'T SEE HOW YOU WIND UP WITH 136 KIDS KILLED WITHOUT SOMEBODY BEING WAY OUT OF LINE I THINK A WAR CRIME WAS COMMITTED UP THERE PRESIDENT ALFREDO CRISTIANI IS SOMEWHAT HESITANT ABOUT FOCUSING TOO MUCH ON THE EL MOZOTE INVESTIGATIONS I THINK IT'S BETTER FOR THE COUNTRY IF WE DON'T ALWAYS LOOK BACK HE SAID IN A RECENT INTERVIEW IN THE PRESIDENTIAL PALACE BUT THE FACT THAT EL SALVADOR HAS EVOLVED ENOUGH SO THAT APPARENT WAR CRIMES LIKE EL MOZOTE CAN BE INVESTIGATED WITHOUT PASSION IS A GREAT SIGN OF HOPE ONLY BY TAKING HIGHLY CHARGED CASES SUCH AS EL MOZOTE OUT OF THE REALM OF PROPAGANDA AND SUBJECTING THEM TO THE BARE SCRUTINY OF INDEPENDENT INVESTIGATORS WILL THERE BE HOPE THAT EL SALVADOR'S CURRENT SOCIAL AND ECONOMIC BOOM IS ROOTED NOT IN SPECULATION BUT IN A LASTING RESPECT FOR THE RULE OF LAW MR ASMAN EDITS THE AMERICAS COLUMN 9302260122 930226 LEISURE & ARTS PARIS MATISSE SHOW IS SUED BY PAUL LEVY PARIS FRESH FROM ITS WILD SUCCESS IN NEW YORK THE MATISSE SHOW GREATLY REDUCED IN SIZE WAS ABOUT TO OPEN HERE AND RUN UNTIL JUNE 21 BUT THE COMBINATION OF A STRIKE AND A LAWSUIT HAVE SO FAR KEPT THE PUBLIC OUT OF THIS EAGERLY AWAITED RETROSPECTIVE A WORK STOPPAGE BY BLUECOLLAR STAFF AT THE BEAUBOURG MUSEUM WOULD PRESUMABLY HAVE BEEN A BRIEF INCONVENIENCE BUT IRINA SHCHUKIN'S LAWSUIT IS A MORE FUNDAMENTAL THREAT TO THE FUTURE OF THE SHOW MS SHCHUKIN IS THE DAUGHTER OF A GREAT 20THCENTURY RUSSIAN COLLECTOR SERGEI SHCHUKIN WHOSE MODERN ART TROVE WAS NATIONALIZED BY THE SOVIETS AND NOW IS SPLIT BETWEEN THE HERMITAGE IN ST PETERSBURG AND THE PUSHKIN MUSEUM IN MOSCOW MS SHCHUKIN HAS GONE TO COURT HERE TO PRESS HER CLAIM AS HEIR TO 25 MATISSE PAINTINGS IN THE SHOW A THIRD OF THE ENTIRE EXHIBITION AND WANTS THE AUTHORITIES TO SEIZE THE SHOW'S CATALOG BECAUSE IT CONTAINS REPRODUCTIONS OF HER MATISSES PRINTED WITHOUT PERMISSION HER CASE WILL BE HEARD TODAY MS SHCHUKIN'S GRAND SCHEME IS APPARENTLY TO REUNITE HER FATHER'S ENTIRE COLLECTION IN THE FAMILY'S FORMER HOME THE TROUBETSKOY PALACE IN MOSCOW TO THIS END SHE HAS WRITTEN PRESIDENT YELTSIN ASKING THAT THE NATIONALIZATION DECREE BE ANNULLED AND SHE HAS ASKED THE FRENCH TO REMOVE THE SHCHUKIN PICTURES FROM THE SHOW AND SEQUESTER THEM IN FRANCE THE INTENDED SHOW FOCUSED ENTIRELY ON THE YEARS 19041917 WAS SEEN BY A VERY LARGE CROWD AT THE PRESS OPENING THIS WEEK ARE THERE REALLY THIS MANY CULTURAL JOURNALISTS IN THE WHOLE WORLD IN ADDITION TO THE RUSSIAN PICTURES THERE IS A CLUTCH OF PICTURES FROM PRIVATE COLLECTIONS AND OTHERS FROM HARDTOVISIT PROVINCIAL MUSEUMS OF FRANCE AND THE REST OF EUROPE THE HANGING ITSELF MAKES THE CASE AS DO LENGTHY LABELS THAT MATISSE ANTICIPATED VIRTUALLY EVERY DEVELOPMENT OF PAINTING OF THE 20TH CENTURY YOU DON'T HAVE TO BELIEVE IT TO RELISH THE EXHIBITION OR TO APPRECIATE THE WAY THE SHOW ENDS WITH THE PIVOTAL 1919 PAINTING TEA OF MRS MATISSE AND HER DAUGHTER IN A LEAFY GARDEN THE MOST PERFECT EXPRESSION WROTE THE ARTIST'S MOST ARTICULATE CONTEMPORARY CRITIC ROGER FRY OF THE GENIUS OF MATISSE ACROSS THE SEINE AT THE MUSEE D'ORSAY YOU REALLY CAN GET INTO THE OTHER BIG EXHIBITION IN TOWN TO CELEBRATE THE EVENTS OF 1993 THE OPENING OF THE FRONTIERS OF EUROPE TO THE FREE CIRCULATION OF PEOPLE AND OF GOODS THIS BUSTLING PALACE OF CULTURE HAS HAD THE CLEVER IDEA OF LOOKING AT THE ARTISTIC ACTIVITY OF EUROPEAN PAINTERS A CENTURY EARLIER FRANCOISE CACHIN THE MUSEUM'S ENTERPRISING DIRECTOR HAS HERSELF ASSEMBLED L'EUROPE DES PEINTRES PAINTERS' EUROPE 95 PAINTINGS BY 85 ARTISTS FROM 18 COUNTRIES THE BOUNDARIES OF THE EUROPE OF THE EXHIBITION THUS TAKE IN MORE COUNTRIES THAN THOSE THAT CURRENTLY COMPOSE THE EC MS CACHIN PROPOSES THAT THE EXHIBITION BE VIEWED NOT AS TRADITIONAL ART HISTORY BUT AS ARCHAEOLOGY SHE HAS IN EFFECT TAKEN A VERTICAL SLICE THROUGH TIME WHAT SHE IS PRESENTING IS AN IMAGINARY SALON A SHOW THAT COULD HAVE BEEN MOUNTED BUT OF COURSE WAS NOT IN 1893 WHEN ALL 95 PICTURES WERE EITHER PAINTED OR HAD JUST BEEN FINISHED OR WERE ACTUALLY EXHIBITED IT'S AN AMUSING GAME TO PLAY WITH HISTORY IF SHE HAD CHOSEN A DATE TWO OR THREE YEARS EARLIER WHEN VAN GOGH AND SEURAT WERE STILL ALIVE A COMPLETELY DIFFERENT SHOW WOULD HAVE RESULTED TWO OR THREE YEARS LATER SAY 1896 MUNICH AND VIENNA WOULD HAVE FIGURED MUCH MORE AS WOULD MOST OF THE GREAT PAINTERS OF THE 20TH CENTURY FROM KANDINSKY TO MATISSE FROM MONDRIAN TO PICASSO THE FIRST WORKS YOU SEE ON ENTERING ARE THREE OF MONET'S ROUEN CATHEDRAL PAINTINGS IN TRUTH THESE GREAT AND FAMILIAR WORKS GAIN LITTLE BY BEING SHOWN IN THIS DIFFERENT CONTEXT EXCEPT TO REMIND YOU FORCEFULLY OF THE DATE WHEN MONET FINISHED THEM THE PLEASURES OF THE SHOW LIE ALMOST ENTIRELY IN THE DISCOVERY OF UNFAMILIAR WORKS AND PAINTERS THROWN UP BY THIS ORIGINAL METHOD OF SELECTION THUS LA MAISON ROSE BY THE BELGIAN WILLIAM DEGOUVE DE NUNCQUES STARTLES THE VIEWER BECAUSE IT IS SO OBVIOUSLY THE ANCESTOR OF MAGRITTE'S 1954 L'EMPIRE DES LUMIERES IT IS BRACKETED WITH THE MONETS AND WITH A RARE DEGAS LANDSCAPE A MONOTYPE OF A SCENE IN BURGUNDY YOU CAN'T HELP BUT REMARK THE RICHNESS OF THE FRENCH PICTURES AND THE RELATIVE POVERTY OF THE SELECTION FROM BRITAIN SAY AND RUSSIA AND EASTERN EUROPE AS WELL AS SOUTHERN EUROPE WITH SOME POSITIVELY AWFUL SOCIAL REALIST PICTURES FROM ITALY AND IT IS HARD TO OVERLOOK THE FACT THAT THE EXHIBITION CULMINATES IN THE LARGE DOUANIER ROUSSEAU LA GUERRE WHICH EFFECTIVELY PREDICTS THE END OF THE CIVILIZATION OF EUROPE OF 1893 THAT WAS TO COME IN LESS THAN ONE GENERATION IN 1914 THESE REFLECTIONS LED ME TO SEARCH FOR A HIDDEN AGENDA FOR THIS SHOW AND I FOUND IT IN MS CACHIN'S MOVINGLY WRITTEN ESSAY REVIEWING THE LITERARY MOVEMENTS AND MAGAZINES OF 1893 SHE REMINDS US NOT TO FORGET THAT FRENCH WAS THE LANGUAGE OF COMMUNICATION OF THE WHOLE OF CULTIVATED EUROPE AND URGES US TO RECOGNIZE THAT PARIS SINCE THE MIDDLE OF THE CENTURY DESPITE THE HICCUP OF 1870 AND FOR SEVERAL YEARS AFTER WAS THE SPIRITUAL AND PRACTICAL CAPITAL OF EUROPEAN PAINTING AND THE CRADLE AND NURSERY OF THE MODERN MOVEMENT PARIS SHE URGES WAS STILL THE PRINCIPAL CENTER OF A TRULY EUROPEAN CULTURE MS CACHIN HAS AN INGENIOUS EXPLANATION OF THIS PROBABLY TRUE CLAIM FRANCE WAS THE SOLE REPUBLIC IN EUROPE IN 1893 SURROUNDED BY NUMEROUS LITTLE KINGDOMS AND SEVERAL GREAT EMPIRES BUT SHE EMBODIED IN THESE TIMES OF THE EXPANSION OF NATIONALISM AN EXAMPLE OF AUTONOMY OF UNIVERSALITY AND OF LIBERTY IN THE TRADITION OF THE EUROPEAN ENLIGHTENMENT CAUSE FOR SOBER REFLECTION JUST A CENTURY LATER 9302260121 930226 WHO'S NEWS HARTMAN IS SAID TO PLAN TO LEAVE NATIONSBANK IN '94 BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTE NC TIMOTHY P HARTMAN THE VICE CHAIRMAN OF NATIONSBANK CORP WHO MASTERMINDED WHAT HAS BEEN LABELED ONE OF THE SHREWDEST DEALS IN BANKING HISTORY INTENDS TO RETIRE IN MARCH 1994 WHEN HE TURNS 55 YEARS OLD AN INDIVIDUAL CLOSE TO THE MATTER SAID A SPOKESWOMAN FOR NATIONSBANK BASED IN CHARLOTTE NC SAID MR HARTMAN HAS HAD A LONGSTANDING OBJECTIVE OF BEING ABLE TO RETIRE AT AGE 55 WHEN HE TURNS 55 HE WILL BE ELIGIBLE FOR A PENSION OF AT LEAST 25000 A MONTH ACCORDING TO THE BANK'S 1992 PROXY STATEMENT MR HARTMAN DIDN'T RETURN CALLS SEEKING COMMENT MR HARTMAN IS CREDITED AS THE ARCHITECT OF THE GOVERNMENTASSISTED BUYOUT OF THE REMNANTS OF FIRST REPUBLICBANK CORP WHICH GAVE NATIONSBANK'S PREDECESSOR NCNB CORP NEARLY 1 BILLION IN TAX CREDITS THE TEXAS BANK PROVED TO BE EXCEPTIONALLY PROFITABLE FOR NCNB AND TO HAVE POSITIONED IT FOR ITS ACQUISITION OF C&S/SOVRAN CORP IN 1992 WHICH CREATED NATIONSBANK THE NATION'S FOURTH LARGEST BANK HOLDING COMPANY HARTMAN CONCEPTUALIZED THE STRUCTURE AND WAS CRITICAL IN ACHIEVING THE TAX CREDITS IN THE FIRSTREPUBLIC DEAL SAYS FRANK W ANDERSON AN ANALYST WITH STEPHENS INC IN LITTLE ROCK ARK THAT ACQUISITION IS PROBABLY THE GREATEST IN THE HISTORY OF THE BANKING INDUSTRY MR HARTMAN HAS ALSO BEEN VERY ACTIVE IN THE BANK'S INTENSE FEDERAL LOBBYING EFFORTS SEEKING NATIONWIDE INTERSTATE BANKING AND HE HAS HAD SOME CONTROVERSY IN 1986 MR HARTMAN ENTERED INTO A STIPULATION OF SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION IN WHICH HE NEITHER ADMITTED NOR DENIED CHARGES BROUGHT AGAINST HIM THE SEC ALLEGED THAT MR HARTMAN FORMER CHIEF FINANCIAL OFFICER OF BALDWIN UNITED CORP CINCINNATI AND THE COMPANY HAD VIOLATED FEDERAL SECURITIES LAWS IN CONNECTION WITH INACCURACIES IN BALDWIN'S 1980 AND 1981 FINANCIAL STATEMENTS AND DEFICIENCIES IN INTERNAL ACCOUNTING CONTROLS 9302260120 930226 BUSINESS BRIEFS ALLIEDSIGNAL INC'S AUTOMOTIVE UNIT WILL BUILD A LABORATORY TRAINING AND ADMINISTRATIVE HEADQUARTERS NEAR TOLEDO OHIO FOR ITS FILTERS AND SPARK PLUGS OPERATIONS COMERICA INC COMPLETED THE ACQUISITION OF SUGAR CREEK NATIONAL BANK IN A STOCK SWAP VALUED AT 275 MILLION OF COMERICA COMMON STOCK FIRST AMERICAN CORP WILL ACQUIRE FIRST FEDERAL SAVINGS & LOAN FROM AREA BANCSHARES CORP FOR 275 MILLION IN CASH AND SUBORDINATED DEBT WASHINGTON MUTUAL SAVINGS BANK PLANS TO COMPLETE ITS ACQUISITION OF PIONEER SAVINGS BANK INC MONDAY SARA LEE CORP ACQUIRED BESSIN CORP TERMS WEREN'T DISCLOSED A UNIT OF GTE CORP RECEIVED 33 MILLION IN CONTRACTS TO MODERNIZE TELECOMMUNICATIONS SYSTEMS AT SEVEN ARMY SITES COCACOLA CO WILL INVEST AN ADDITIONAL 150 MILLION IN CHINA TO BUILD OR UPGRADE 10 SOFT DRINK PLANTS 9302260119 930226 WHO'S NEWS BORDEN EXECUTIVE RESIGNS NEW YORK JON G HETTINGER PRESIDENT OF BORDEN INC'S GROCERY PRODUCTS DIVISION RESIGNED BECOMING THE FIRST HIGHLEVEL EXECUTIVE TO QUIT SINCE THE ANNOUNCEMENT OF A MAJOR RESTRUCTURING MR HETTINGER 51 YEARS OLD LEFT TO PURSUE OUTSIDE PERSONAL INTERESTS LAST OCTOBER BORDEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO ANNOUNCED A PLAN TO STREAMLINE THE FOOD AND CONSUMER PRODUCTS COMPANY THAT INCLUDED MERGING THE COMPANY'S PASTA SNACKS DAIRY AND GROCERY PRODUCTS DIVISION INTO A SINGLE DIVISION 9302260118 930226 RETIREES GET SOCKED AGAIN BY STEPHEN J ENTIN WHEN PRESIDENT CLINTON CLAIMS THAT HIS PROPOSED INCOME TAX INCREASES WILL AFFECT ONLY THOSE WITH ADJUSTED GROSS INCOMES ABOVE 100000 HE'S FORGETTING ABOUT THE ELDERLY AMONG HIS PROPOSALS IS ONE TO TAX 85 OF THE SOCIAL SECURITY RETIREMENT AND DISABILITY BENEFITS OF COUPLES WHO EARN MORE THAN 32000 A YEAR AND SINGLES WHO EARN MORE THAN 25000 RIGHT NOW THE ROUGHLY 20 OF THE ELDERLY AND THE DISABLED WHO EARN MORE THAN THESE AMOUNTS PAY TAXES ON JUST 50 OF THEIR SOCIAL SECURITY BENEFITS IF ENACTED THIS CHANGE WOULD INCREASE THE MARGINAL TAX RATE ON THE INCOMES OF MANY MIDDLEINCOME RETIREES THOSE AFFECTED WOULD SEE THEIR MARGINAL RATE INCREASE BY FIVE TO 10 PERCENTAGE POINTS SOME COULD EVEN FACE RATES IN EXCESS OF 100 IN FACT THE TAX ON BENEFITS DOES NOT FALL ON THE BENEFITS THEMSELVES BUT ON A RETIREE'S OTHER PRIVATELY EARNED INCOME THE OPERATING PHILOSOPHY SEEMS TO BE THE HARDER YOU'VE WORKED TO SAVE FOR YOUR RETIREMENT THE HIGHER YOUR TAXES ARE THE CURRENT SYSTEM OF TAXING RETIREES IS EXTREMELY COMPLICATED SOCIAL SECURITY BENEFITS BEGIN TO BE TAXED WHEN SOMETHING CALLED THE MODIFIED ADJUSTED GROSS INCOME MAGI REACHES 25000 FOR A SINGLE TAXPAYER OR 32000 FOR A MARRIED COUPLE FILING JOINTLY THE MAGI IS THE SUM OF ORDINARY ADJUSTED GROSS INCOME WAGES INTEREST PENSIONS DIVIDENDS ETC PLUS TAXEXEMPT BOND INCOME AND 50 OF SOCIAL SECURITY BENEFITS UNDER CURRENT LAW FOR EACH DOLLAR BY WHICH A RETIREE'S MAGI EXCEEDS 25000 OR 32000 50 OF HIS SOCIAL SECURITY BENEFITS BECOME TAXABLE UP TO HALF OF HIS BENEFITS THIS MEANS THAT AS BENEFITS BECOME TAXABLE FOR EVERY ADDITIONAL DOLLAR OF TAXABLE INCOME A RETIREE EARNS HIS TAXABLE INCOME INCREASES NOT BY 1 BUT BY 150 IN OTHER WORDS THE MARGINAL TAX RATE ON THAT EXTRA 1 OF EARNED INCOME IS 15 TIMES NORMAL IT INCREASES FOR EXAMPLE FROM 15 TO 225 OR FROM 28 TO 42 THIS AMOUNTS TO A PENALTY ON RETIREES WHO HAVE WORKED HARD TO BUILD RETIREMENT INCOMES A YOUNGER PERSON WITH THE SAME INCOME PAYS A LOWER MARGINAL RATE OF TAX BUT THAT'S NOT ALL THE HIGHEST RATES OF ALL OCCUR WHEN A RECIPIENT'S EXTRA INCOME IS FROM WAGES RATHER THAN PENSIONS DIVIDENDS OR INTEREST THIS IS BECAUSE SOCIAL SECURITY PLACES A LIMIT ON WHAT WORKING RECIPIENTS MAY EARN WITHOUT A SECOND PENALTY IN 1993 THAT LIMIT IS 7680 FOR THOSE BETWEEN THE AGES OF 62 AND 64 AND 10560 FOR THOSE 65 TO 69 IF A RECIPIENT BETWEEN THE AGES OF 62 AND 64 HAS WAGES ABOVE THE LIMIT HE LOSES 1 IN SOCIAL SECURITY BENEFITS FOR EVERY 2 HE EARNS THAT'S AN EFFECTIVE TAX RATE OF 50 IF HE'S BETWEEN THE AGES OF 65 AND 69 HE LOSES 1 IN SOCIAL SECURITY BENEFITS FOR EVERY 3 HE EARNS AN EFFECTIVE TAX RATE OF 33 1/3 WHEN THIS EFFECTIVE TAX OF 50 OR 33 1/3 INTERACTS WITH THE TAXATION OF BENEFITS AND THE SOCIAL SECURITY PAYROLL TAX ON THE ADDED WAGES THE MARGINAL TAX RATE CAN ZOOM ABOVE 90 AND THAT'S BEFORE STATE AND LOCAL TAXES ONCE A RECIPIENT HAS PAID TAXES ON HALF HIS SOCIAL SECURITY EARNINGS HIS MARGINAL TAX RATE FALLS BACK TO THE NORMAL MARGINAL RATES THIS IS HOW THE CURRENT SYSTEM WORKS BUT JUST WAIT UNDER MR CLINTON'S 85 PROPOSAL RETIREES FACE AN EVEN HIGHER TAX BURDEN JUST HOW HEAVY THAT BURDEN WILL BE DEPENDS ON HOW THE PROPOSAL IS IMPLEMENTED THE CRUCIAL QUESTION TO WHICH THE PRESIDENT'S BUDGET OFFERS NO ANSWER IS HOW 85 IS INTERPRETED NO ONE AT THE SOCIAL SECURITY ADMINISTRATION SEEMS TO KNOW FOR EVERY DOLLAR OF EXTRA INCOME WILL 185 BE IMMEDIATELY TAXABLE THIS WOULD BE A PHASEIN RATE OF 85 AND WOULD INCREASE A RETIREE'S MARGINAL TAX RATE TO 185 TIMES THE NORMAL RATE UNDER THIS INTERPRETATION THE NORMAL RATE OF 15 WOULD BECOME 278 AND THE NORMAL RATE OF 28 WOULD JUMP TO 518 FOR THE WORKING RECIPIENT WHO LOSES 1 IN SOCIAL SECURITY BENEFITS FOR EVERY 2 HE EARNS IN WAGES AN EFFECTIVE TAX RATE OF 50 AND WHO MUST PAY THE SOCIAL SECURITY PAYROLL TAX ON HIS WAGES THAT COULD COMBINE TO PRODUCE AN EFFECTIVE MARGINAL TAX RATE OF MORE THAN 100 OR WILL THE PHASEIN RATE CONTINUE TO BE 50 THAT IS FOR EVERY DOLLAR OF EXTRA INCOME WILL A RETIREE PAY TAXES ON 150 LIKE TODAY BUT UNLIKE TODAY WILL THAT TAX TREATMENT CONTINUE UNTIL HE HAS PAID TAXES ON 85 INSTEAD OF 50 OF HIS SOCIAL SECURITY BENEFITS UNDER THIS INTERPRETATION THE PHASEIN RATE WOULD STAY THE SAME 50 BUT A BROADER RANGE OF RETIREMENT INCOME WOULD BE HIT BY TODAY'S SUPERNORMAL RATES THERE'S A THIRD POSSIBILITY THAT MUST BE CONSIDERED IN TRYING TO DECIPHER WHAT 85 MEANS WOULD AN 85 RATE APPLY TO THE PERCENTAGE OF SOCIAL SECURITY BENEFITS INCLUDED IN A RETIREE'S MAGI A PERCENTAGE THAT IS CURRENTLY 50 IF THAT'S THE CASE THE NUMBER OF RETIREES WITH MAGIS ABOVE THE TAX THRESHOLDS OF 25000 OR 32000 WOULD SOAR IN HIS ADDRESS TO CONGRESS THIS MONTH MR CLINTON PROMISED THAT HIS PROPOSAL WOULDN'T INCREASE THE NUMBER OF RETIREES WHO PAY TAXES ON THEIR SOCIAL SECURITY BENEFITS TO KEEP THAT PROMISE HE'LL HAVE TO MAKE SURE THAT THE SHARE OF SOCIAL SECURITY BENEFITS INCLUDED IN THE MAGI IS NOT INCREASED TO 85 OF COURSE THERE'S INFLATION UNLESS THE INCOME THRESHOLDS FOR TAXATION OF BENEFITS ARE ADJUSTED FOR INFLATION AS YEARS GO BY MORE AND MORE RETIREES WILL FIND THEMSELVES WITH MAGIS ABOVE THE THRESHOLD AT AN ANNUAL INFLATION RATE OF 3 BY 2010 WHEN THE BABY BOOM GENERATION IS BEGINNING TO RETIRE THE THRESHOLDS FOR SINGLE AND MARRIED TAXPAYERS WILL HAVE FALLEN TO ROUGHLY 15000 AND 19000 IN TODAY'S DOLLARS IF MR CLINTON'S OBJECT IN RAISING TAXES ON RETIREES IS TO SAVE MONEY FOR THE SOCIAL SECURITY SYSTEM THEN A FAR BETTER WAY WOULD BE TO SLOW THE GROWTH OF BENEFITS FOR FUTURE RETIREES ANOTHER SOLUTION WOULD BE TO INCREASE THE RETIREMENT AGE AT WHICH BENEFITS BEGIN BUT THE EFFECT OF THE CURRENT SYSTEM OF ALLOWING BENEFITS TO GROW AND THEN SLAPPING HUGE TAXES ON THEM IS TO REDUCE YOUNGER TAXPAYERS' INCENTIVES TO WORK AND SAVE FOR THEIR RETIREMENTS THE CURRENT TAX TREATMENT OF RETIREES EVEN WITHOUT MR CLINTON'S 85 SOLUTION CREATES ENORMOUS DISINCENTIVES TO WORK AND SAVE THE CLINTON PROPOSAL WOULD EXAGGERATE THIS FLAW IF HIS OBJECT IS FAIRNESS HE CANNOT ACHIEVE IT WITH TAX RATES APPROACHING OR EXCEEDING 100 IF HIS OBJECT IS TO TURN SOCIAL SECURITY INTO A MEANSTESTED WELFARE PROGRAM THERE ARE MORE EFFICIENT WAYS TO DO IT MR ENTIN IS A RESIDENT SCHOLAR AT THE INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION IN WASHINGTON 9302260117 930226 PEPPERAND SALT I'M THE ANIMAL THAT IS SAVED IT'S BEEN OBSERVED THAT A CHRONIC LITIGATOR HAS A PROSECUTION COMPLEX 9302260116 930226 FINANCING BUSINESS WALMART STORES INC WALMART STORES INC BENTONVILLE ARK SAID IT COMPLETED THE SALE OF 750 MILLION OF NOTES THE DISCOUNT RETAILER SAID IT SOLD 500 MILLION OF NONCALLABLE NOTES DUE MARCH 1 1990 AT A PRICE THAT WILL YIELD AN ANNUAL INTEREST RATE OF 5572 AND 250 MILLION OF NOTES PRICED TO YIELD 641 PROCEEDS WILL BE USED TO REPAY SHORTTERM DEBT INCURRED IN THE ACQUISITION OF LAND FOR STORES AND FOR GENERAL WORKING CAPITAL PURPOSES A PERSON FAMILIAR WITH THE SALE SAID GOLDMAN SACHS & CO WAS THE LEAD UNDERWRITER FOR THE SALE 9302260115 930226 NOTABLE & QUOTABLE FROM A JAN 27 SPEECH BY E GERALD CORRIGAN PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK TO THE NEW YORK STATE BANKERS ASSOCIATION EVEN TODAY WITH THE OUTLOOK FOR INFLATION SEEMING TO BE SO BENIGN WE MUST REMAIN VIGILANT AND WE MUST STAUNCHLY RESIST THOSE VOICES WHO WOULD SUGGEST THAT A LITTLE MORE INFLATION MAY NOT BE ALL THAT BAD ESPECIALLY IF IT BRINGS A LOT MORE GROWTH ABOVE ALL WE MUST VIGOROUSLY RESIST ANY SUGGESTION THAT A LITTLE MORE INFLATION IS SOMETHING WE CAN LIVE WITH BECAUSE WE CAN FINETUNE POLICY AND SOMEHOW CAP THE INFLATION RATE AT SOME MODERATELY HIGHER BUT STABLE RATE I SAY TO YOU IN POINT BLANK TERMS THAT SUCH AN APPROACH WILL NOT WORK AND WHEN IT DOES NOT WORK I CAN ABSOLUTELY GUARANTEE THAT THERE WILL BE NO WITCH DOCTOR NOR ANY MAGIC MEDICINE THAT WILL BE CAPABLE OF REVERSING THAT LITTLE MORE INFLATION WITHOUT INCURRING SUBSTANTIAL COSTS IN TERMS OF HIGHER UNEMPLOYMENT AND LOST OUTPUT 9302260114 930226 TECHNOLOGY & MEDICINE ABORTION BACKERS SEE HOPEFUL SIGNS FOR RU486 IN US BY ELYSE TANOUYE AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ABORTION RIGHTS GROUPS SAID THEY ARE ENCOURAGED BY INDICATIONS THAT ROUSSELUCLAF SA MAY BE SOFTENING ITS POSITION AGAINST BRINGING THE ABORTION PILL RU486 TO THE US BUT THEY ADDED A BIG HURDLE REMAINS ROUSSEL'S GERMAN PARENT HOECHST AG WHICH HAS BEEN OPPOSED TO RELEASING THE DRUG IN THE US HASN'T GIVEN ANY SIGN OF BENDING ACCORDING TO THE US FOOD AND DRUG ADMINISTRATION EDOUARD SAKIZ PRESIDENT OF ROUSSELUCLAF TOLD FDA COMMISSIONER DAVID A KESSLER IN A MEETING THIS WEEK THAT RU486 OUGHT TO BE MADE AVAILABLE IN THE US BUT WITHOUT THE FRENCH COMPANY'S INVOLVEMENT IN DISTRIBUTION OR MARKETING THE TWO SIDES AGREED TO WORK ON RESOLVING THE REMAINING ISSUES INCLUDING SETTING UP CLINICAL TRIALS WITHOUT THE COMPANY'S DIRECT INVOLVEMENT ACCORDING TO THE FDA DR SAKIZ DECLINED TO COMMENT ON THE FDA'S CHARACTERIZATION OF THE MEETING OTHER ROUSSEL OFFICIALS SAID THEY HADN'T BEEN APPRISED OF WHAT OCCURRED AT THE MEETING HOWEVER ONE SMALL CONCERN THAT HAS ASKED TO LICENSE RU486 FROM ROUSSELUCLAF SAYS IT HAS NOTICED A RECENT CHANGE IN THE FRENCH COMPANY'S STANCE STEPHEN M SIMES PRESIDENT OF GYNEX PHARMACEUTICALS INC OF VERNON HILLS ILL SAID HE HEARD TWICE FROM ROUSSELUCLAF IN RECENT MONTHS ABOUT HIS COMPANY'S LICENSING REQUEST ROUSSELUCLAF SAID IT WAS WEIGHING ITS OPTIONS AND WOULD GET BACK IN TOUCH WITH MR SIMES IN THE PREVIOUS FOUR YEARS SAID MR SIMES HE NEVER RECEIVED A FORMAL REPLY IN FRANKFURT A HOECHST AG SPOKESWOMAN DECLINED TO COMMENT ON THE FDA MEETING WITH ROUSSELUCLAF SAYING THE FDA INITIATED THE TALKS WHICH DIDN'T INVOLVE HOECHST IF ROUSSELUCLAF AND THE FDA WERE TO REACH A CONSENSUS THEN ONE WOULD HAVE TO DISCUSS THE MATTER THE SPOKESWOMAN SAID THE NATIONAL RIGHT TO LIFE COMMITTEE INC AN ANTIABORTION GROUP ASSAILED THE FDA'S INTENSE LOBBYING OF ROUSSELUCLAF TO BRING THE DRUG TO THE US RICHARD D GLASOW EDUCATION DIRECTOR OF THE COMMITTEE SAID HE'S OUTRAGED AT THE POLITICIZING OF THE DRUGAPPROVAL PROCESS BY THE CLINTON ADMINISTRATION HE EXPRESSED CONCERN ABOUT ROUSSELUCLAF'S APPARENT WILLINGNESS TO ALLOW THE DRUG INTO THE COUNTRY AND SAID HIS GROUP IS STILL LOOKING FOR AVENUES TO PREVENT IT FROM COMING IN CONGRESSMAN RON WYDEN D ORE SAID THE MEETING THIS WEEK WAS A GOOD FIRST STEP BUT NOTED THAT DR SAKIZ HAS BEEN VERY SYMPATHETIC FOR A VERY LONG TIME TO HAVING THE DRUG BROUGHT TO THE US HOWEVER UNTIL HOECHST GIVES THE GOAHEAD WE AREN'T ACTUALLY ON THE WAY HE SAID BUT ELEANOR SMEAL PRESIDENT OF THE FEMINIST MAJORITY FOUNDATION SAID THAT DR SAKIZ'S MEETING WITH THE FDA INDICATES HE HAS APPROVAL FROM HOECHST AUDREY CHOI IN DUSSELDORF CONTRIUBUTED TO THIS ARTICLE 9302260113 930226 GE'S WELCH EXTOLS VIRTUES OF BEING BIG AND SMALL IN A CHANGING WORLD BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO'S GOAL IS TO BE BOTH BIG AND SMALL AT THE SAME TIME THAT MAY SOUND LIKE HAVING YOUR CAKE AND EATING IT TOO BUT THAT'S WHAT IT WILL TAKE FOR GE TO SUCCEED IN A WORLD OF SHIFTING TECHNOLOGY AND CONSUMER PREFERENCE CHAIRMAN JOHN F WELCH JR WROTE IN A LETTER TO SHAREHOLDERS IN THE COMPANY'S ANNUAL REPORT MR WELCH AN INTENSE CHIEF EXECUTIVE OFFICER HAS BECOME A GURU AMONG AMERICAN EXECUTIVES BECAUSE HE HAS RESHAPED GE IN RECENT YEARS WHILE PRODUCING IMPRESSIVE RESULTS IN AN OBVIOUS REFERENCE TO THE PLIGHT OF SUCH TROUBLED COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP AND GENERAL MOTORS CORP MR WELCH SAID SIZE IS NO LONGER THE TRUMP CARD IT ONCE WAS IN TODAY'S BRUTALLY COMPETITIVE WORLD GE'S ANNUAL REPORT ISSUED YESTERDAY FEATURED SELFCONGRATULATIONS FOR AVOIDING THE PITFALLS OF SIZE BACKED UP BY SOME HARD NUMBERS ON THE COMPANY'S 1992 PERFORMANCE MR WELCH SAID THAT IN RECENT YEARS GE HAS ANALYZED ITSELF AND STUDIED HUNDREDS OF COMPANIES AROUND THE GLOBE HE SAID THE FAIRFIELD CONN CONCERN CONCLUDED THAT ALTHOUGH BIG COMPANIES' SCALE AND THEIR REACH TOO OFTEN JUST IMPRESS IT'S SMALL COMPANIES THAT CREATE EXCITEMENT MOST SMALL COMPANIES ARE UNCLUTTERED SIMPLE INFORMAL THEY THRIVE ON PASSION AND RIDICULE BUREAUCRACY MR WELCH SAID HE ATTRIBUTED SMALL COMPANIES' SUCCESS TO THEIR ALERTNESS TO CUSTOMER DEMAND THE CUSTOMER'S THUMBS UP OR DOWN MEANS THE DIFFERENCE BETWEEN GROWTH AND EXTINCTION HE SAID SMALL COMPANIES MUST FACE THE REALITY EVERY DAY AND WHEN THEY HAVE TO MOVE THEY HAVE TO WITH SPEED HOW DOES ONE GET SPEED IN A COMPANY WITH 13 DIFFERENT BUSINESSES WITH COMBINED 1992 SALES OF 622 BILLION AND 230000 EMPLOYEES MR WELCH CITED GE'S ELIMINATION OF BOUNDARIES FIEFDOMS AND BUREAUCRACY IN AN EFFORT TO CREATE A BOUNDARYLESS ORGANIZATION AMONG THE PAYOFFS HE CITED ARE SHARP REDUCTIONS IN THE TIME IT TAKES TO DELIVER PRODUCT FROM THE TIME IT'S ORDERED HE SAID GE APPLIANCES FOR INSTANCE IS ABLE TO DELIVER IN 3 1/2 WEEKS DOWN FROM 18 WEEKS IN 1990 AND IS ON THE WAY TO THREE DAYS BUT BIG CAN ALSO BE GOOD MR WELCH IS QUICK TO NOTE SIZE GIVES GE ITS STAYING POWER AND ENABLES THE COMPANY TO SPEND BILLIONS OF DOLLARS ON DEVELOPING NEW JET ENGINES AND THE NEXT GENERATION OF MEDICAL EQUIPMENT WHAT WE ARE TRYING RELENTLESSLY TO DO IS GET THAT SMALLCOMPANY SOUL AND SMALLCOMPANY SPEED INSIDE OUR BIGCOMPANY BODY HE SAID HE SAID GE HAS PRODUCED ITS FAIR SHARE OF RHETORIC IN THE RECENT PAST IN PROPOUNDING THESE VALUES TO ITS EMPLOYEES BUT ITS 1992 PERFORMANCE IN THE FACE OF A DIFFICULT ECONOMIC ENVIRONMENT IS EVIDENCE THAT ITS MANAGEMENT PHILOSOPHIES HAVE BEEN PRODUCING SOME HARD NUMBERS AS PREVIOUSLY REPORTED GE'S 1992 PROFIT ROSE 7 TO 473 BILLION FROM 444 BILLION BUT SEVERAL GE SEGMENTS POSTED LOWER RESULTS AND THE COMPANY OFFERED DETAILS IN THE ANNUAL REPORT OPERATING PROFIT AT GE AIRCRAFT ENGINES DECLINED 8 FROM 1991 AT GE APPLIANCES IT WAS DOWN 4 AND AT ITS BROADCASTING UNIT IT WAS DOWN 2 WHILE CONTINUED WEAKNESS IN ADVERTISING AND THE SUMMER OLYMPIC GAMES HURT NATIONAL BROADCASTING CO'S 1992 RESULTS GE SAID NBC'S SIX TV STATIONS POSTED HIGHER EARNINGS AND THAT NBC'S CABLE OPERATIONS ACHIEVED THEIR FIRST FULL YEAR OF PROFITABILITY GE SAID THAT ALTHOUGH NBC DOESN'T EXPECT A SIGNIFICANT GROWTH IN ADVERTISING IN 1993 ITS EFFORTS TO MAINTAIN DEMOGRAPHIC RATINGS AND TO CUT COSTS PROVIDE AN IMPROVED EARNINGS OUTLOOK THIS YEAR AS FOR GE'S OVERALL PERFORMANCE 1993 HOLDS CONTINUING CHALLENGES AS COMPETITION INTENSIFIES AND ACCELERATES THE COMPANY SAID ON THE MANAGEMENT FRONT MR WELCH SAID IN THE LETTER THE CHALLENGE IS TO IGNITE THE BIG COMPANY WITH PASSION HUNGER APPETITE FOR CHANGE IN A MEDITATIVE NOTE THE CHIEF EXECUTIVE SAID THAT WHEN MOST OF US LOOK BACK AT OUR CAREERS OUR BIGGEST REGRETS SOMETIMES OUR MOST BITTER ONES ARE OFTEN THAT ONCE WE DEFINED REALITY WE DIDN'T ACT FAST ENOUGH BOLDLY ENOUGH 9302260112 930226 RUSSIA STARTS TRICKY AND SENSITIVE TASK OF PRIVATIZING STATE COOPERATIVE FARMS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AS RUSSIA'S PRIVATIZATION OF INDUSTRY MOVES FORWARD AGAINST SOME RESISTANCE OFFICIALS ARE STARTING TO WORK ON WHAT MAY WELL BE EVEN MORE CONTROVERSIALPRIVATIZATION OF STATE AND COOPERATIVE FARMS AS WITH THE INITIAL AUCTIONS OF SMALL ENTERPRISES LAST SPRING AND WITH MASS AUCTIONS OF LARGE ONES EARLIER IN FEBRUARY INTERNATIONAL FINANCE CORP IS WORKING WITH RUSSIA'S STATE PROPERTY COMMITTEE ON A FARM PRIVATIZATION SYSTEM THAT THEY HOPE WILL SERVE AS A MODEL FOR THE REST THE IFC WHICH IS THE INVESTMENT ARM OF THE WORLD BANK CHOSE FIVE FARMS IN THE NIZHNYNOVGOROD REGION WHERE SMALLSCALE PRIVATIZATION ALSO BEGAN IFC STAFF MEMBERS WILL LIVE ON THE FARMS STARTING EARLY NEXT MONTH TO WORK WITH THE FARMERS AND LEARN MORE ABOUT COOPERATIVE FARM LIFE THE PLAN TO PRIVATIZE FARMLAND STRIKES ONE OF THE MOST SENSITIVE NERVES IN THE STATE BODY THE BELIEF THAT PRIVATE LAND OWNERSHIP INEVITABLY LEADS TO OPPRESSION AND INEQUALITY IS STILL WIDELY HELD LAST YEAR A LAW SUPPOSEDLY PRIVATIZING FARMS WAS PASSED BUT IN FACT IT MERELY TRANSFERRED THE OWNERSHIP RIGHTS OF A FARM FROM THE STATE TO THE WHOLE COLLECTIVE THAT REMOVED THE STATE FROM MICROMANAGING FARM AFFAIRS BUT IT DIDN'T GIVE ANYONE A GREATER SENSE OF OWNERSHIP WHEN YOU GIVE LAND COLLECTIVELY TO AN ENTIRE KOLKHOZ OR SOVKHOZ COOPERATIVE FARM OR STATE FARM YOU JUST HAVE A PRIVATIZED KOLKHOZ OR SOVKHOZ SAYS ALAN BIGMAN IFC'S FIELD MANAGER ON THE NIZHNYNOVGOROD PROJECT CURRENT LAW ALSO ALLOWS PROPERTY OWNERS TO BEQUEATH THEIR LAND TO DESCENDANTS OR SELL IT BACK TO THE STATE AFTER FIVE OR 10 YEARS DEPENDING ON THE CASE BUT FREE SALE STILL ISN'T ALLOWED THE ISSUE OF WHETHER LAND CAN TRULY BE PRIVATELY HELD IS SO TOUCHY THAT PRESIDENT BORIS YELTSIN SAW NO WAY OF RESOLVING IT SHORT OF TAKING IT TO A PLANNED NATIONAL REFERENDUM IN THE MEANTIME THE STATE PROPERTY COMMITTEE IS MOVING FORWARD ON CREATING A METHOD FOR REAL PRIVATIZATION THE IFC PILOT PROGRAM PLANS TO DIVIDE A FARM'S LAND AND EQUIPMENT AMONG ITS WORKING FARMERS AND PENSIONERS AS LANDHOLDERS PEOPLE WILL THEN HAVE THE OPPORTUNITY TO WORK FAMILY OR WESTERNSTYLE COOPERATIVE FARMS THE AVERAGE NUMBER OF WORKERS ON THE PILOT FARMS IS ABOUT 350 AND WITH PENSIONERS INCLUDED SOME 8000 PEOPLE WILL BE IMMEDIATELY AFFECTED SO FAR THE PROGRAM IS SHAPING UP LIKE THIS EACH PERSON WILL RECEIVE SEPARATE SHARES FOR LAND AND FOR EQUIPMENT EQUIPMENT WILL BE VALUED ACCORDING TO THE FARM'S 1990 BALANCE SHEETS SHAREHOLDERS WILL BE ALLOWED TO BUY EQUIPMENT AND ANIMALS JOINTLY BY POOLING EQUIPMENT SHARES ENABLING FARMERS TO PURCHASE A TRACTOR FOR EXAMPLE LAND SHARES WHICH WILL ENTITLE EACH HOLDER TO ABOUT 1235 ACRES CAN BE POOLED ONLY WITHIN A FAMILY ALTHOUGH LAND CAN'T BE SOLD FREELY UNDER A 1991 PRESIDENTIAL DECREE IT CAN BE SOLD WITHIN A FARM OR SWAPPED FOR OTHER ASSETS THE STATE PROPERTY COMMITTEE IS CONSIDERING WHETHER TO LET PRIVATIZATION VOUCHERS THAT HAVE BEEN DISTRIBUTED ONE EACH TO EVERY RUSSIAN BE EXCHANGED FOR FARM PROPERTY AN ALTERNATIVE IS TO ISSUE NEW VOUCHERS JUST FOR LAND THE VOUCHERS COULD BE USED TO BUY LAND LEFT OVER AFTER THE BULK OF A FARM IS DIVIDED UP AMONG CURRENT MEMBERS ONCE THE PROGRAM HAS BEEN CARRIED OUT IN THE FIVE NIZHNYNOVGOROD FARMS A HOWTO MANUAL WILL BE DISTRIBUTED TO REGIONAL OFFICIALS AND FARM DIRECTORS AROUND THE COUNTRY AS WAS THE CASE WITH ENTERPRISE PRIVATIZATION IF IT WERE THE 1930S AND WE WERE DECOLLECTIVIZING RIGHT AFTER COLLECTIVIZATION EVERYONE WOULD JUST GRAB THEIR PROPERTY BACK AND GET TO WORK SAYS MR BIGMAN BUT THIS IS DIFFERENT WE NEED TO CREATE A SENSE OF PROPERTY OWNERSHIP THAT BRINGS PRIVATIZATION TO THE IRREVERSIBLE STAGE IRREVERSIBILITY IS THE KEY WORD LATELY IN ALL COMMENTARY ON PRIVATIZATION AND OTHER ECONOMIC REFORMS BUT SOME PEOPLE WORRY THAT EVEN IF CERTAIN REFORMS BECOME IRREVERSIBLE THEY STILL LACK THE STRUCTURAL SUPPORT THAT MAKES THE REFORMS TRULY MEANINGFUL ONE SUCH LOOMING PROBLEM IS BANKRUPTCY MANAGEMENT THE GOAL OF INDUSTRIAL PRIVATIZATION IS TO RID THE COUNTRY OF INEFFICIENT UNCOMPETITIVE STATE DINOSAURS AND REPLACE THEM WITH PRIVATE BUSINESSES HUNGRY FOR PROFITS A NEW BANKRUPTCY LAW IS DUE TO COME INTO EFFECT MARCH 1 BUT IT IS INADEQUATE IN SOME RESPECTS AND ISN'T FORTIFIED BY A STRONG LEGAL INFRASTRUCTURE TO HELP BRING IT TO LIFE WITHOUT A PROPER MECHANISM CRITICS SAY HOW WILL THE ECONOMY SIFT OUT INEFFICIENT COMPANIES AND FORCE THEM TO RESTRUCTURE OR FOLD THE BANKRUPTCY LAW GIVES THE NEW JOB OF EVALUATING BANKRUPTCY PROCEEDINGS TO THE EXISTING STATE COMMERCIAL COURTS AND REFERS TO THEM BY THE NEW NAME STATE ARBITRAGE COURTS INTERNAL SEMINARS ARE BEING HELD TO HELP PREPARE JUDGES BUT AT THESE MEETINGS JUDGES ARE REPORTED TO BE SAYING THAT THEY DON'T FEEL THEMSELVES COMPETENT EVEN THE MOST ELEMENTARY TASKS SUCH AS EVALUATING A BALANCE SHEET ARE UNFAMILIAR TO THE JUDGES DAN WOLFE A MOSCOWBASED LAWYER SAYS THE PROBLEM REALLY WILL BE WHAT SORT OF STANCE THE ARBITRAGE COURTS WILL TAKE AND HOW TOUGH THEY WILL BE ONE OF THE HARDEST THINGS IS FINDING PEOPLE COMPETENT TO EITHER LIQUIDATE OR RESTRUCTURE MR WOLFE IS WITH CLIFFORD CHANCE AN INTERNATIONAL LAW FIRM BASED IN LONDON THE LAW ITSELF IS RELATIVELY WELLWRITTEN AMONG THE NEW LEGISLATION HERE ACCORDING TO FOREIGN LAWYERS IT ALLOWS FOR THREE FORMS OF BANKRUPTCYLIQUIDATION RESTRUCTURING AND PEACEFUL AGREEMENT WITH DEBTORS BUT CREDITORS' RIGHTS UNDER A LIQUIDATION AREN'T CLEAR AND THERE ISN'T ADEQUATE DIFFERENTIATION AMONG CREDITORS SO THAT SOME WILL BE ASSURED OF PAYMENT BEFORE OTHERS THE LAW ESTABLISHES AN ORDER OF PRIORITY FOR SIX BROAD CATEGORIES OF CREDITORS AND ALLOWS FOR IMMEDIATE CREATION OF A REGISTRY SYSTEM BUT THE CASHSTRAPPED STATE IS IN NO RUSH TO CREATE THAT REGISTRY LAWYERS SAY WITH THE GOVERNMENT LOCKED IN A BATTLE THAT'S MORE POLITICAL THAN ECONOMIC I DOUBT THAT THIS KIND OF THING WILL BE HIGH ON THE LIST AT THE LEGISLATURE SAYS MR WOLFE DESPITE ITS INADEQUACIES HOWEVER THE LAW WOULD HELP TO PUSH FORWARD RESOLUTION OF THE INTERCOMPANY DEBT THAT UNDERMINED LAST YEAR'S ATTEMPTS AT STRICT FISCAL POLICY MANY OF THE NEW CREDITS THE GOVERNMENT ISSUED LAST YEAR WERE TO COVER INTERCOMPANY DEBT WHICH BALLOONED TO AT LEAST THREE TRILLION RUBLES THE BANKRUPTCY LAW SAYS ANY COMPANY THAT HASN'T PAID ITS DEBTS WITHIN THREE MONTHS IS OPEN TO BANKRUPTCY SUITS TO BE BROUGHT BY CREDITORS BUT THAT DEADLINE IN ITSELF MAY PROVE UNREALISTIC UNTIL THE BANKING SYSTEM IS STREAMLINED RUSSIAN BUSINESSMEN REGULARLY COMPLAIN THAT PAYMENT TRANSFERS CAN TAKE SEVERAL MONTHS TO MAKE THEIR WAY FROM ONE ACCOUNT TO ANOTHER IN THE CURRENT BANKING SYSTEM 9302260111 930226 MARKETING & MEDIA BELL ATLANTIC SEEKS WAIVER TO PROVIDE VIDEO SERVICES PHILADELPHIA BELL ATLANTIC CORP SAID IT IS ASKING THE DEPARTMENT OF JUSTICE TO HELP IT GET A WAIVER OF RESTRICTIONS THAT PREVENT IT FROM PROVIDING VIDEO PROGRAMMING SERVICES THE COMPANY ONE OF THE SEVEN BABY BELL PHONE COMPANIES SAID THE OFFICIAL FILING THE FIRST SUCH REQUEST FROM A BELL COMPANY TO THE JUSTICE DEPARTMENT WILL BE MADE TODAY BELL ATLANTIC IS SEEKING TO PROVIDE THESE SERVICES WITHOUT REGARD TO LOCAL ACCESS TRANSPORT AREA BOUNDARIES THE TERRITORY WITHIN WHICH A REGIONAL BELL COMPANY CAN CARRY CALLS THESE TERRITORIES WERE CREATED AS A RESULT OF THE BREAKUP OF THE BELL SYSTEM IN 1984 INTO AMERICAN TELEPHONE & TELEGRAPH CO FOR LONGDISTANCE SERVICE AND THE BABY BELLS FOR LOCAL SERVICE NONE OF THE WAYS IN WHICH PROGRAMMING IS DELIVERED TODAY DEPEND ON THE SOCALLED TELEPHONE COMPANY BOTTLENECK' THAT IS THE TELEPHONE WIRES LINKING HOMES AND BUSINESSES TO PHONE COMPANY SWITCHES SAID ART BUSHKIN PRESIDENT OF INFORMATION SERVICES FOR BELL ATLANTIC BELL ATLANTIC HAS ZERO SHARE IN THE VIDEO DELIVERY AREA AND SEEKS TO ENTER THE MARKET IN COMPETITION WITH THE ESTABLISHED DELIVERY CHANNELS HE SAID CURRENTLY THIS SERVICE IS PROVIDED BY TV STATIONS CABLE NETWORKS SATELLITE BROADCAST SERVICES AND VIDEO CASSETTES 9302260110 930226 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 DEAN WITTER DISCOVER & CO 15 BILLION OF NOTES PRICED IN TWO PARTS BY UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC A 750 MILLION ISSUE OF NOTES DUE MARCH 1 1998 WAS PRICED AS 6 AT 99701 TO YIELD 607 A SPREAD OF 82 BASIS POINTS ABOVE THE FIVEYEAR TREASURY NOTE A 750 MILLION ISSUE OF NOTES DUE MARCH 1 2003 WAS PRICED AS 6 7/8 AT 99536 TO YIELD 694 A SPREAD OF 90 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE THE NONCALLABLE NOTES WERE RATED A3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP WALMART STORES INC 750 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE FIRST PART CONSISTING OF 500 MILLION OF NOTES DUE MARCH 1 1998 WAS PRICED AS 5 1/2 AT 99689 TO YIELD 5572 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 250 MILLION OF NOTES DUE MARCH 1 2003 WAS PRICED AS 6 3/8 AT 99743 TO YIELD 641 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS ARE RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P PACIFIC BELL 325 MILLION OF NOTES DUE MARCH 1 2005 WON BY LEHMAN BROTHERS THE NOTES WILL BE REOFFERED AS 6 1/4 AT 97939 TO YIELD 65 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP PRAXAIR INC 300 MILLION OF NOTES DUE MARCH 1 2003 PRICED AS 675 AT 99326 TO YIELD 6844 A SPREAD OF 83 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BASS AMERICA INC 300 MILLION OF NOTES DUE MARCH 1 2003 PRICED AS 6 5/8 AT 99975 TO YIELD 663 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 63 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC BASS AMERICA IS A UNIT OF LONDONBASED BASS PLC GEORGIAPACIFIC CORP 250 MILLION OF DEBENTURES DUE MARCH 1 2023 PRICED AS 825 AT 9925 TO YIELD 8318 A SPREAD OF 148 BASIS POINTS ABOVE THE 30YEAR TREASURY BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NEW YORK TELEPHONE CO 200 MILLION OF DEBENTURES DUE MARCH 1 2005 WON BY UNDERWRITERS LED BY SALOMON BROTHERS INC THE NONCALLABLE ISSUE WAS PRICED AS 6 1/2 AT 9943 TO YIELD 657 A SPREAD OF 56BASIS POINTS ABOVE THE TREASURY YIELD CURVE THE ISSUE WAS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP MELLON FINANCIAL CO 150 MILLION OF SUBORDINATED NOTES DUE MARCH 1 2003 PRICED AS 6 7/8 AT 99863 TO YIELD 6894 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MELLON FINANCIAL IS A UNIT OF MELLON BANK CORP WEIRTON STEEL CORP 140 MILLION OF SENIOR NOTES DUE MARCH 1 1998 PRICED AT PAR TO YIELD 115 THE NONCALLABLE ISSUE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS BE AEROSPACE INC 125 MILLION OF SENIOR NOTES DUE MARCH 1 2003 PRICED AS 9 3/4 AT 99215 TO YIELD 9875 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P MORGAN STANLEY GROUP INC 100 MILLION OF NOTES DUE MARCH 4 2003 PRICED AS 675 AT 99255 TO YIELD 6854 AN 83 BASIS POINT SPREAD ABOVE THE 10YEAR TREASURY NOTE RATED A1 BY MOODY'S AND SINGLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO POTOMAC ELECTRIC POWER CO 78 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 15 2008 WON BY DEALERS LED BY BEAR STEARNS & CO THE ISSUE WILL BE REOFFERED AS 6 1/2 AT 98403 TO YIELD 667 BEAR STEARNS'S BID RESULTED IN A 673 NET INTEREST COST TO THE COMPANY THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P POTOMAC ELECTRIC POWER CO 40 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 15 2028 WON BY DEALERS LED BY SALOMON BROTHERS INC THE ISSUE WILL BE REOFFERED AS 7 1/2 AT 99385 TO YIELD 755 SALOMON BROTHERS' BID RESULTED IN A 7596 NET INTEREST COST TO THE COMPANY THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1488 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES TENNESSEE VALLEY AUTHORITY 750 MILLION OF NOTES DUE MARCH 4 1996 PRICED AS 4 3/8 AT 99487 TO YIELD 456 THE ISSUE NONCALLABLE FOR ONE YEAR WAS PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE THE THREEYEAR TREASURY NOTE TVA'S SENIOR DEBT IS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TENNESSEE VALLEY AUTHORITY 250 MILLION OF POWER BONDS SERIES B DUE MARCH 4 1998 PRICED AS 5 1/8 AT 9875 TO YIELD 5414 THE BONDS NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE THE FIVEYEAR TREASURY NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FEDERAL HOME LOAN BANKS 121 MILLION OF NOTES DUE MARCH 8 1996 PRICED AT PAR TO YIELD 449 INITIALLY THE NOTES WHICH WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE IS NONCALLABLE FOR ONE YEAR STORAGE TECHNOLOGY CORP THREE MILLION SHARES OF CONVERTIBLE EXCHANGEABLE PREFERRED STOCK OFFERED WITH A LIQUIDATION PREFERENCE OF 50 A SHARE FOR A TOTAL OFFERING OF 150 MILLION THE COMPANY SAID THE PREFERRED STOCK WILL PAY AN ANNUAL CUMULATIVE DIVIDEND OF 350 A SHARE AND WILL BE CONVERTIBLE AT ANY TIME AT THE OPTION OF THE HOLDER INTO SHARES OF COMMON STOCK THE CONVERSION RATE IS 2128 COMMON SHARES FOR EACH PREFERRED SHARE EQUAL TO A CONVERSION PRICE OF 2350 A SHARE THE PREFERRED STOCK IS EXCHANGEABLE AT THE OPTION OF THE COMPANY BEGINNING MARCH 15 1995 FOR THE COMPANY'S 7 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2008 SALOMON BROTHERS INC IS THE LEAD MANAGER FOR THE OFFERING THE UNDERWRITERS HAVE AN OPTION TO PURCHASE AN ADDITIONAL 450000 SHARES TO COVER ANY OVERALLOTMENTS BOCA RESEARCH INC AN INITIAL OFFERING OF THREE MILLION SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST INC WINSTON FURNITURE CO AN INITIAL OFFERING OF 1950000 SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS CENTRAL HUDSON GAS & ELECTRIC CORP AN OFFERING OF 700000 COMMON SHARES PRICED AT 3375 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO KROGER CO AN OFFERING OF 125 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PUBLIC SERVICE ENTERPRISE GROUP INC AN OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 3325 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO WASHINGTON HOMES INC AN INITIAL OFFERING OF THREE MILLION SHARES PRICED AT 9 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC EZCORP INC AN OFFERING OF TWO MILLION CLASS A SHARES PRICED AT 2250 EACH THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO LENNAR CORP AN OFFERING OF THREE MILLION COMMON SHARES PRICED AT 2950 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC REPUBLIC OF AUSTRIA SOVEREIGN 300 MILLION CANADIAN DOLLARS OF 7 3/4 EUROBONDS DUE MARCH 25 2003 AT ISSUE PRICE 100935 VIA JP MORGAN SECURITIES REOFFERED AT 9926 TO YIELD 786 A MARGIN OF 35 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES TWO POINTS JAPAN HIGHWAY CORP JAPAN AGENCY 200 MILLION OF 5 5/8 EUROBONDS DUE MARCH 29 2000 AT FIXED REOFFER PRICE 99352 VIA LTCB INTERNATIONAL YIELD 574 AT REOFFER PRICE A MARGIN OF 27 BASIS POINTS ABOVE COMPARABLE US TREASURY GUARANTOR GOVERNMENT OF JAPAN FEES 030 POINT EXXON CAPITAL CORP US 250 MILLION OF 615 EUROBONDS DUE MARCH 11 2003 AT ISSUE PRICE 100925 VIA KIDDER PEABODY INTERNATIONAL REOFFERED AT 9925 TO YIELD 625 A MARGIN OF 16 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE GUARANTOR EXXON CORP FEES 2 MEXICO SOVEREIGN 200 MILLION OF 7 1/4 EUROBONDS DUE MARCH 16 1998 AT FIXED REOFFER PRICE 99234 VIA DEUTSCHE BANK CAPITAL MARKETS LTD YIELD 7439 AT REOFFER A MARGIN OF 208 BASIS POINTS ABOVE US TREASURY'S 5 1/8 FIVEYEAR NOTE FEES 3/4 ROYAL INSURANCE HOLDINGS PLC UK 100 MILLION OF 9 5/8 SUBORDINATED EUROBONDS DUE MARCH 25 2003 AT ISSUE AND REOFFER PRICE 9987 VIA BARCLAYS DE ZOETE WEDD BONDS YIELD 965 A MARGIN OF 175 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT BOND FEES TWO POINTS NATIONAL HOME LOANS NO 2 PLC SPECIAL PURPOSE VEHICLE 105 MILLION OF MORTGAGEBACKED NOTES DUE JUNE 2030 VIA GOLDMAN SACHS INTERNATIONAL 70 MILLION OF 'A1' NOTES WITH EXPECTED AVERAGE LIFE OF ONE YEAR INTEREST PAID AT 85 BASIS POINTS ABOVE QUARTERLY LONDON INTERBANK OFFERED RATE FOR STERLING FOR FIRST TWO YEARS STEPPING UP TO 200 BASIS POINTS ABOVE LIBOR THEREAFTER FIXED REOFFER PRICE 9995 ALSO 35 MILLION OF A2' NOTES WITH EXPECTED AVERAGE LIFE OF TWO YEARS INTEREST PAID AT 110 BASIS POINTS ABOVE LIBOR FOR FIRST 30 MONTHS STEPPING UP TO 250 BASIS POINTS ABOVE LIBOR THEREAFTER FIXED REOFFER PRICE 9990 CALL OPTION ON COUPON STEPUP DATES AND INTEREST PAYMENT DATES THEREAFTER IF OUTSTANDING AMOUNT FALLS TO 10 OR LOWER BONDS BACKED BY PORTFOLIO OF NONPERFORMING RESIDENTIAL MORTGAGES ORIGINATED BY NATIONAL HOME LOANS PLC FEES 7/8 POINT RABOBANK NEDERLAND NV NETHERLANDS 125 MILLION CANADIAN DOLLARS OF 7 1/4 EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE 100875 VIA WOOD GUNDY REOFFERED AT 9925 TO YIELD 744 A MARGIN OF 45 BASIS POINTS ABOVE GOVERNMENT OF CANADA'S 6 1/4 ISSUE DUE 1998 FEES 1 7/8 SOUTH AUSTRALIAN GOVERNMENT FINANCING AUTHORITY AUSTRALIA AGENCY 100 MILLION AUSTRALIAN DOLLARS OF 7 3/4 EUROBONDS DUE APRIL 15 1998 AT ISSUE PRICE 10105 VIA HAMBROS BANK LTD GUARANTOR GOVERNMENT OF SOUTH AUSTRALIA FEES TWO POINTS 9302260109 930226 MONEY FUNDS' ASSETS ROSE IN LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE BY 966 BILLION TO 60233 BILLION FROM 59267 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 621 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 168 BILLION TO 38875 BILLION THE TRADE GROUP SAID ASSETS OF 386 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 165 BILLION TO 30676 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS ROSE BY 264 MILLION TO 8199 BILLION ASSETS OF THE 273 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 799 BILLION TO 21358 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 222 TAXABLE MONEYMARKET FUNDS ROSE BY 816 BILLION TO 19137 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 1726 MILLION TO 2221 BILLION 9302260108 930226 SMALLBUSINESS TAX BREAK PLAN SOWS DISCONTENT CAPITALGAINS CUT TO HELP INVESTORS INCLUDES LIMIT BACKERS DIDN'T EXPECT BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S PROPOSAL TO GIVE INVESTORS IN SMALL BUSINESSES A CAPITALGAINS TAX BREAK IS FAR MORE LIMITED THAN SUPPORTERS OF THE IDEA THOUGHT IT WOULD BE DETAILS OF THE PROVISION WERE INCLUDED IN A 71PAGE BOOKLET THAT THE TREASURY RELEASED YESTERDAY SPELLING OUT VARIOUS ASPECTS OF THE ADMINISTRATION'S TAX PACKAGE UNDER THE CAPITALGAINS PROPOSAL INVESTORS COULD EXCLUDE 50 OF ANY PROFIT REALIZED FROM THE SALE OF ORIGINALISSUE SMALLBUSINESS STOCK HELD FOR AT LEAST FIVE YEARS BUT THE GAIN ELIGIBLE FOR THAT TAX BREAK WOULD BE LIMITED TO THE GREATER OF 10 TIMES THE ORIGINAL PRICE OF THE STOCK OR 1 MILLION LEGISLATION INTRODUCED EARLIER BY SEN DALE BUMPERS D ARK WHICH THE PRESIDENT HIMSELF HAD SAID HE'D USE AS THE BASIS OF THE ADMINISTRATION'S PROPOSAL CONTAINS NO SUCH CAP SIMILARLY THE CLINTON PLAN WOULD APPLY ONLY TO BUSINESSES THAT HAVE RAISED LESS THAN 25 MILLION FROM DEBT AND EQUITY MARKETS RATHER THAN THE 100 MILLION UNDER THE BUMPERS BILL THE CLINTON PLAN ALSO DEPARTS FROM THE BUMPERS BILL BY EXCLUDING SUBCHAPTER S CORPORATIONS MANY SMALL BUSINESSES HAVE SUBCHAPTER S STATUS WHICH ALLOWS THEM TO BE TAXED LIKE PARTNERSHIPS WE'RE CERTAINLY DISAPPOINTED SAID ED HATCHER A LOBBYIST FOR THE AMERICAN ELECTRONICS ASSOCIATION WHICH HAD BEEN ONE OF THE MAIN BACKERS OF THE BUMPERS BILL EVERYBODY'S HAVING TO MAKE A SACRIFICE BUT FOR THE DOLLARS THAT THE PRESIDENT IS SAVING HERE IT COULD COST HIM A LOT OF STRONG SUPPORT FROM DIFFERENT GROUPS THE ADMINISTRATION PROPOSAL CARRIES A PRICE TAG OF 714 MILLION OVER SIX YEARS THE BUMPERS PLAN WOULD HAVE COST ABOUT 1 BILLION OVER THE SAME SPAN THE ADMINISTRATION'S MOVE AWAY FROM THE BUMPERS PLAN CAUGHT MANY PEOPLE BY SURPRISE INCLUDING THE CONGRESSIONAL AIDES WHO WORKED ON THE BILL WE WERE FLATOUT ASTONISHED SAID ONE SMALLBUSINESS EXPERT ON CAPITOL HILL A SPOKESWOMAN FOR SEN BUMPERS SAID HE WAS PLEASED THAT CLINTON'S PLAN DOES INCLUDE FEATURES FROM HIS BILL BUT SHE SAID THE LAWMAKER WOULD SUPPORT CHANGES TO MAKE IT CLOSER TO THE ORIGINAL LEGISLATION A TREASURY SPOKESMAN SAID THE RESTRICTIONS INCLUDED IN THE ADMINISTRATION'S PROPOSAL WERE DESIGNED IN PART TO LIMIT THE LONGTERM REVENUE LOSS ANOTHER TREASURY OFFICIAL SAID DEPARTMENT ECONOMISTS FOUND THAT THERE AREN'T A LOT OF COMPANIES THAT FALL BETWEEN THE 25 MILLION AND 100 MILLION CAPITALIZATION LEVELS AND ADDING S CORPORATIONS TO THE PROPOSAL HE CONTENDED WOULD LIKELY SPAWN AN INDUSTRY OF UNINTENDED TAX SHELTERS BUT ALLEN NEECE WHO REPRESENTS THE NATIONAL VENTURE CAPITAL ASSOCIATION SAID THE 25 MILLION THRESHOLD WOULDN'T COVER INVESTMENTS IN THE NEXT GENERATION OF GENENTECHS OR APPLE COMPUTERS OR MICROSOFTS DJ GRIBBIN TAX LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH INCLUDES THOUSANDS OF MOMANDPOP COMPANIES QUESTIONED HOW MANY STARTUP COMPANIES WOULD BE GENERATED AND JOBS CREATED UNDER THE CLINTON PLAN IT'S KIND OF FUNNY THAT THIS IS THE SMALLBUSINESS CAPITALGAINS BREAK AND YET THE PRIMARY SMALL BUSINESS FORM THE S CORPORATION ISN'T INCLUDED MR GRIBBIN SAID LIKE THE BUMPERS BILL THE CLINTON PROPOSAL WOULD EXCLUDE A NUMBER OF ACTIVITIES FROM QUALIFYING FOR THE CAPITALGAINS BREAK AMONG THEM ARE BANKING LEASING REAL ESTATE FARMING MINERAL EXTRACTION PERSONAL SERVICES AND HOSPITALITY BUSINESSES OFFICIALS SAID THE EXCLUSIONS WERE INTENDED TO PREVENT ABUSE BESIDES EXPOUNDING ON THE CAPITALGAINS PROVISION THE TREASURY BOOKLET INCLUDES ADDITIONAL INFORMATION ON A RANGE OF OTHER TAX PROVISIONS SPECIFICALLY THE 7 INVESTMENTTAX CREDIT FOR LARGE COMPANIES WOULD APPLY TO PROPERTY PLACED IN SERVICE BETWEEN DEC 4 1992 AND DEC 31 1994 TAXPAYERS WOULD BE ABLE TO CLAIM THE CREDIT FOR INVESTMENTS OVER A BASE TO CALCULATE THE BASE TAXPAYERS FIRST WOULD FIGURE THEIR AVERAGE ANNUAL INVESTMENT IN NEW AND USED PROPERTY FROM 1989 THROUGH 1991 OR FROM 1987 THROUGH 1991 THAT AMOUNT WOULD BE INDEXED FOR GROWTH IN THE GROSS DOMESTIC PRODUCT AND MULTIPLIED BY 70 TO DETERMINE THE BASE THROUGH DEC 31 1993 TO DETERMINE THE BASE FOR 1994 THE HISTORIC INVESTMENT FIGURE WOULD BE MULTIPLIED BY 80 TAXPAYERS WOULD NOT BE PERMITTED TO CLAIM THE CREDIT ON MORE THAN 50 OF QUALIFIED INVESTMENT IN A TAXABLE YEAR FOR INSTANCE A COMPANY WITH A FIXED BASE OF 1 MILLION AND QUALIFYING INVESTMENT OF 6 MILLION WOULD ONLY BE PERMITTED TO CLAIM THE CREDIT WITH RESPECT TO 3 MILLION OF INVESTMENT IN ADDITION SOCALLED RECAPTURE RULES WOULD BE PROVIDED TO DISCOURAGE THE BUNCHING OF INVESTMENTS IN 1993 AND 1994 THESE RULES WHICH ARE TO APPLY THROUGH 1997 WOULD REQUIRE REPAYMENT OF ALL OR A PORTION OF THE CREDITS IF THE TAXPAYER'S INVESTMENT DROPS BELOW THE BASE THE INITIATIVE TO IMPROVE TAX COMPLIANCE AMONG SERVICE CORPORATIONS WOULD REQUIRE THAT ANNUAL PAYMENTS OF 600 OR MORE TO ALL SUCH COMPANIES BE REPORTED TO THE INTERNAL REVENUE SERVICE UNDER CURRENT LAW PAYMENTS TO CORPORATIONS PROVIDING SERVICES GENERALLY DON'T NEED TO BE REPORTED SOME BUSINESS GROUPS ARE WORRIED THAT THIS PROVISION WILL LEAD TO A MOUNTAIN OF NEW PAPERWORK THE RISE IN INDIVIDUAL INCOMETAX RATES TO 36 WOULD APPLY TO TAXABLE INCOME IN EXCESS OF THE FOLLOWING LEVELS MARRIED INDIVIDUALS FILING JOINT RETURNS 140000 HEADS OF HOUSEHOLDS 127500 UNMARRIED INDIVIDUALS 115000 MARRIED INDIVIDUALS FILING SEPARATE RETURNS 70000 AND ESTATES AND TRUSTS 5500 FOR ESTATES AND TRUSTS THE 15 RATE WOULD APPLY TO INCOME OF AS MUCH AS 1500 THE 28 RATE WOULD APPLY TO INCOME BETWEEN 1501 AND 3500 AND THE 31 RATE WOULD APPLY TO INCOME BETWEEN 3501 AND 5500 THE 10 SURTAX WHICH APPLIES TO INDIVIDUALS WITH TAXABLE INCOME IN EXCESS OF 250000 WOULD HIT ESTATES AND TRUSTS WITH TAXABLE INCOME IN EXCESS OF 7500 THE PROPOSAL TO DENY DEDUCTIONS FOR EXECUTIVE PAY OVER 1 MILLION WOULDN'T INCLUDE COMPENSATION PAYMENTS LINKED TO PRODUCTIVITY HOWEVER THE TREASURY SAID IT'S STILL REVIEWING APPROPRIATE STANDARDS REGARDING THIS EXCEPTION CERTAIN OTHER PAYMENTS ALSO WOULD BE EXCLUDED FROM THE DEDUCTION LIMIT SUCH AS THOSE MADE TO A TAXQUALIFIED RETIREMENT PLAN AND CERTAIN OTHER FRINGE BENEFITS 9302260107 930226 CREDIT RATINGS TANDY CORP NEW YORK RATINGS ON 165 BILLION OF DEBT WERE LOWERED BY STANDARD & POOR'S CORP CITING THE INCREASED RISK INVOLVED IN THE ELECTRONICS RETAILER'S PROPOSED SPINOFF OF ITS MANUFACTURING OPERATIONS S&P LOWERED THE RATINGS OF TANDY CORP'S AND TANDY CREDIT CORP'S SENIOR DEBT AND SENIOR SHELF DEBT TO SINGLEAMINUS FROM SINGLEA AND REDUCED THE COMPANY'S COMMERCIAL PAPER RATING TO A2 FROM A1 IT ALSO LOWERED TANDY CORP'S SUBORDINATED DEBT TO TRIPLEBPLUS FROM SINGLEAMINUS AND ITS PREFERRED STOCK TO TRIPLEBPLUS FROM SINGLEAMINUS THE CREDITRATING SERVICE LOWERED THE RATING ON SENIOR NOTES ISSUED BY THE TANDY EMPLOYEE STOCK OWNERSHIP PLAN TO SINGLEAMINUS FROM SINGLEA LAST MONTH THE RATINGS SERVICE PLACED TANDY CORP'S DEBT UNDER REVIEW SOON AFTER TANDY ANNOUNCED PLANS TO CLOSE 100 UNPROFITABLE ELECTRONICS STORES EXPAND ITS SUPERSTORE RETAILING OPERATIONS AND SPIN OFF ITS MANUFACTURING BUSINESS S&P SAID IT EXPECTED THE COMPANY WILL BE MORE LEVERAGED AFTER THE SPINOFF DUE TO THE LOSS OF ASSETS WHILE TANDY'S EXPOSURE TO VOLATILITY IN THE MANUFACTURING SECTOR WILL BE ELIMINATED S&P SAID THE COMPANY FACES INCREASED RISKS IN THE HIGHLY COMPETITIVE RETAIL ELECTRONICS MARKET 9302260106 930226 SHAWMUT'S MORTGAGELENDING PRACTICES REFERRED FOR POSSIBLE RACIAL BIAS PROBE BY ALBERT R KARR AND JOHN R WILKE STAFF REPORTERS OF THE WALL STREET JOURNAL BOSTON SHAWMUT NATIONAL CORP SAID THE FEDERAL RESERVE BOARD HAS REFERRED ITS MORTGAGELENDING PRACTICES TO THE JUSTICE DEPARTMENT FOR POSSIBLE INVESTIGATION OF RACIAL BIAS IN LENDING THE REFERRAL WAS BASED ON A BROAD STUDY LAST YEAR BY THE FEDERAL RESERVE IN BOSTON WHICH IDENTIFIED SYSTEMATICALLY HIGHER DENIAL RATES FOR BLACK AND HISPANIC APPLICANTS IN MORTGAGE LENDING BY MANY BOSTONAREA BANKS EVEN AFTER ACCOUNTING FOR APPLICANT CREDIT HISTORIES AND OTHER CRITERIA A SPOKESMAN FOR THE HARTFORD CONN BANK NEW ENGLAND'S THIRDLARGEST SUGGESTED THAT SHAWMUT WAS THE ONLY ONE OF THE STUDY GROUP REFERRED FOR INVESTIGATION BECAUSE IT WAS THE AREA'S MOST ACTIVE MORTGAGE LENDER HE SAID THE BANK IS AWARE OF THE REFERRAL BUT WE HAVE HEARD NOTHING FROM THE JUSTICE DEPARTMENT HE ADDED SHAWMUT DOES NOT BASE ITS LENDING DECISIONS ON THE COLOR OF AN APPLICANT'S SKIN BUT ON THEIR ABILITY AND WILLINGNESS TO MEET THEIR FINANCIAL OBLIGATIONS AND WE'RE CONFIDENT THAT THOROUGH AND CAREFUL REVIEW OF OUR FILES WOULD LEAD TO THE SAME CONCLUSION THE STUDY SHOWED THAT THE PROBLEM OF LENDING DISCRIMINATION IS VERY REAL SAID REV CHARLES STITH NATIONAL PRESIDENT OF THE ORGANIZATION FOR A NEW EQUALITY A BOSTONBASED ECONOMIC ADVOCACY GROUP REV STITH ADDED THAT SHAWMUT AND OTHERS HAVE ANNOUNCED STEPS TO IMPROVE LENDING EQUALITY INCLUDING PLANS TO OPEN MORE BANK BRANCHES AND AUTOMATIC TELLER MACHINES IN MINORITY NEIGHBORHOODS AND TO DEVELOP PRODUCTS AND POLICIES THAT BETTER ADDRESS THE NEEDS OF MINORITY BORROWERS A FED SPOKESMAN WOULDN'T COMMENT ON THE SHAWMUT REFERRAL BUT IN TESTIMONY BEFORE THE SENATE BANKING COMMITTEE ON WEDNESDAY FEDERAL RESERVE BOARD MEMBER JOHN LAWARE SAID THAT AS PART OF A GOVERNMENTWIDE CRACKDOWN ON MORTGAGELENDING BIAS THE FED REFERRED THE NAME OF AN UNIDENTIFIED BOSTON INSTITUTION TO THE JUSTICE DEPARTMENT DATA FROM THE BOSTON FED STUDY RAISED CONCERNS ABOUT THAT MORTGAGE COMPANY'S COMPLIANCE WITH FAIR LENDING LAWS SAID MR LAWARE WHO RESIGNED AS SHAWMUT CHAIRMAN IN 1988 TO JOIN THE BOARD I EXPECT THERE WILL BE MORE OF THESE AS WE GO FORWARD MR LAWARE SAID FEDERAL FINANCIAL REGULATORY AGENCIES ARE INVESTIGATING INSTITUTIONS THAT TOOK PART IN THE STUDY TO DETERMINE IF ANY INDIVIDUAL APPLICANTS WERE TREATED LESS FAVORABLY DUE TO RACE MR LAWARE SAID THE BOSTON STUDY LOOKED AT APPLICANTS' CREDIT HISTORIES AND THEIR FINANCIAL EMPLOYMENT AND NEIGHBORHOOD CHARACTERISTICS EVEN AFTER TAKING THOSE INTO ACCOUNT IT SAID MINORITIES EXPERIENCED A 17 DENIAL RATE WHILE THE DENIAL RATE FOR WHITES WAS 11 MR LAWARE SAID THE JUSTICE DEPARTMENT ALSO WILL WEIGH INVESTIGATIONS OF OTHER INSTITUTIONS FOR POSSIBLE LOAN DISCRIMINATION AND ANY RESULTING ENFORCEMENT ACTION THESE WOULD BE PICKED FROM A LIST OF 200 PERHAPS SUSPICIOUS BANKS AND SAVINGSANDLOAN ASSOCIATIONS NATIONWIDE THAT MAY HAVE SHOWN DISPARATE TREATMENT OF RACIAL MINORITIES IN MAKING LENDING DECISIONS THESE ARE CURRENTLY UNDER REVIEW BY THE FED AND THE JUSTICE DEPARTMENT MR LAWARE SAID THE 200 BANKS AND S&LS WERE FLAGGED BY THE FED'S ANALYSIS OF 1990 AND 1991 DATA PRODUCED UNDER THE HOME MORTGAGE DISCLOSURE ACT THE DATA WHILE LESS SOPHISTICATED THAN THE BOSTON STUDY SHOWED THAT AFTER TAKING INTO ACCOUNT THE LOAN APPLICANT'S INCOME MINORITIES WERE STILL LESS ABLE THAN WHITES TO GET MORTGAGE LOANS DATA FOR THE 200 SEPARATE THEM FROM THE REST OF THE CROWD MR LAWARE SAID BUT HE ADDED THE DATA DON'T NECESSARILY PROVE DISCRIMINATION EACH OF FOUR FINANCIAL REGULATORY AGENCIES WILL SELECT FIVE OR SIX INSTITUTIONS WITH THE WORST RECORDS AND THE JUSTICE DEPARTMENT WILL DECIDE WHICH OF THOSE BANKS AND THRIFTS TO INVESTIGATE HE SAID THE AGENCIES INCLUDE THE FED THE FEDERAL DEPOSIT INSURANCE CORP THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION ANALYZING THE DISTURBING DISPARITIES REVEALED BY HMDA DATA FOR USE IN OUR FAIR LENDING ENFORCEMENT EFFORTS HAS BECOME A HIGH PRIORITY FOR THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL SAID MR LAWARE HE CHAIRS THE COUNCIL WHICH COORDINATES BANK AND S&L EXAMINATION FUNCTIONS OF FEDERAL REGULATORS A SPOKESMAN FOR MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER SAID HIS OFFICE IS CURRENTLY ENGAGED IN AN INTENSIVE REVIEW OF THE FED STUDY AND WOULD PURSUE FURTHER STATE ACTION IF MERITED 9302260105 930226 POLITICS & POLICY PASTER WHO TENDS THE FLOCK ON CAPITOL HILL FOR CLINTON FINDS HE'S THE MAN IN THE MIDDLE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOWARD PASTER IS ONE OF THE MOST EFFECTIVE LOBBYISTS IN TOWN AND HE NEEDS TO BE AS PRESIDENT CLINTON'S CHIEF LIAISON WITH CONGRESS THE 48YEAROLD MR PASTER HAS WHAT MAY BE THE CITY'S MOST DAUNTING CHALLENGE SHEPHERDING THE PRESIDENT'S HUGE ECONOMIC AND HEALTHCARE BILLS THROUGH A CAPITOL TRYING TO ADJUST TO CHANGES OF ITS OWN IT IS OUR JOB TO HELP SELL THE PRESIDENT'S PROGRAM FOR BIG CHANGE TO THE AMERICAN PEOPLE IT'S HOWARD'S JOB TO SELL IT TO THE CONGRESS SAYS TOP CLINTON POLITICAL HAND JAMES CARVILLE HOWARD'S GOT THE TOUGHER JOB THE FLEDGLING ADMINISTRATION IS CHAOTIC TO BEGIN WITH BUT THERE ISN'T ANY OFFICE THAT HAS HAD TO DEAL WITH AS MUCH CHANGE AS MR PASTER'S FOR ONE THING MORE THAN ONEFIFTH OF THE CONGRESS IS BRAND NEW AND OF THE 312 DEMOCRATS IN THE HOUSE AND SENATE EVEN THE 96 WHO WERE AROUND WHEN JIMMY CARTER WAS PRESIDENT HAVEN'T HAD TO DEAL WITH A PRESIDENT OF THEIR OWN PARTY FOR A DOZEN YEARS WE ARE TRYING TO DO SOMETHING MASSIVE MR PASTER SAYS AT TIMES IT IS OVERWHELMING IN THIS EFFORT HE HAS ENORMOUS ADVANTAGES PARTICULARLY IN HIS STAFF OF 10 FULLTIME LOBBYISTS HIS DEPUTY SUSAN BROPHY IS WELLKNOWN AND WELLLIKED ON CAPITOL HILL HAVING WORKED IN BOTH THE HOUSE AND THE SENATE SEVERAL OTHER WHITE HOUSE AIDES ALSO HAVE DEEP CONGRESSIONAL EXPERIENCE INCLUDING COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS AND HIS OWN DEPUTIES DAVID DREYER AND RICKI SEIDMAN STILL MR PASTER'S TASK IS A COMPLEX ONE MADE MORE SO BY THE FACT THAT WHILE THE PRESIDENT IS PREACHING FUNDAMENTAL CHANGE IN THE WAY WASHINGTON DOES BUSINESS MANY OF MR PASTER'S CONSTITUENTS THE MEMBERS OF CONGRESS ARE COMFORTABLE WITH THE STATUS QUO IN WHITE HOUSE COUNCILS MR PASTER USUALLY SIDES WITH HIS CONSTITUENTS HE ARGUES AGAINT PRESSING FOR A LINEITEM VETO BECAUSE IT WOULD ALIENATE POWERFUL LAWMAKERS SUCH AS SENATE APPROPRIATIONS CHAIRMAN ROBERT BYRD D WVA SIMILARLY HE HAS PRESSED FOR A CAUTIOUS APPROACH TO A CAMPAIGNFINANCE OVERHAUL MOREPOPULIST CLINTON ADVISERS COMPLAIN THAT MR PASTER AS A WASHINGTON INSIDER IS TOO MUCH A PART OF THE SYSTEM THEY WANT TO CHANGE AND THAT SOME OF HIS POSITIONS SMACK OF STANDING PAT BUT HE COUNTERS THAT SHOVING TOO MUCH CONTROVERSY AT LAWMAKERS ALL AT ONCE COULD HARM THE PRESIDENT'S CHANCES OF PASSING HIGHERPRIORITY BILLS RUNNING ROUGHSHOD OVER THE INSTITUTION MIGHT PLAY WELL IN THE POLLS IN THE SHORT RUN HE ARGUES BUT ALSO WILL PREVENT MR CLINTON FROM GETTING THINGS DONE OVER TIME AND THAT HE CONDENDS IS HOW THE PRESIDENT WILL BE JUDGED MR PASTER'S ROLE AS GOBETWEEN HAS TWO SIDES NOT ONLY MUST HE TWIST ENOUGH ARMS TO GET THE PRESIDENT'S DARING AGENDA PASSED BUT HE ALSO IS RESPONSIBLE FOR TELLING MR CLINTON WHEN NO AMOUNT OF ARMTWISTING WILL BE ENOUGH A TASK THAT OFTEN MAKES HIM THE BEARER OF BAD NEWS HE WAS THE ONE WHO HAD TO TELL THE PRESIDENT THAT HIS NOMINATION OF ZOE BAIRD FOR ATTORNEY GENERAL WAS HEADING FOR COLLAPSE IT ALSO FALLS TO MR PASTER TO DELIVER THE NEWS TO IMPORTANT LAWMAKERS THAT THEIR FAVORITE CANDIDATES FOR HIGH GOVERNMENT POSTS HAVE BEEN REJECTED FOR EXAMPLE HE WAS FORCED TO TELL WISCONSIN DEMOCRATIC REP DAVID OBEY A CONGRESSIONAL POWERHOUSE THAT AN ALLY FORMER DEMOCRATIC REP MATTHEW MCHUGH WOULDN'T GET THE JOB HE WANTED AT THE AGENCY FOR INTERNATIONAL DEVELOPMENT BUT HIS REAL FUNCTION IS TO FIND WAYS TO PLACATE BOTH THE PRESIDENT AND THE LEGISLATORS HE DOES THIS BY PROVIDING SMALL FAVORS SUCH AS INVITING LAWMAKERS TO PRIVATE WHITE HOUSE SOIREES GIVING THEM AUTOGRAPHED PHOTOGRAPHS OF THE PRESIDENT AND EXTENDING THEM THE SIMPLE COURTESY OF PROMPTLY RETURNED CALLS HE ALSO MASTERMINDS BIGGER EVENTS SUCH AS ARRANGING FOR THE PRESIDENT TO MEET ON CAPITOL HILL WITH BOTH HOUSE AND SENATE REPUBLICANS AS THE PRESIDENT IS TO DO TUESDAY EVERYTHING IS DONE WITH A SINGLE GOAL IN MIND TO BUILD ENOUGH GOODWILL TO AT LEAST MAKE IT POSSIBLE TO CORRAL THE VOTES TO PASS THE PRESIDENT'S PAINFUL PLANS DURING THE ADMINISTRATION'S INTERNAL BUDGET DEBATE MR PASTER WAS INSTRUMENTAL IN AVERTING SOME COMMODITY PROGRAM CUTS THAT HE KNEW WOULD CAUSE FARMBELT LEGISLATORS TO BALK HE ALSO PRESERVED MILLIONS OF DOLLARS IN SOCALLED HIGHWAY DEMONSTRATION PROJECTS PORKBARREL GIVEAWAYS THAT WILL SURELY COME IN HANDY IN COURTING THE VOTES OF RELUCTANT LAWMAKERS MR PASTER IS NO STRANGER TO LEGISLATIVE TUMULT AS AN OPERATIVE FOR THE UNITED AUTO WORKERS UNION IN THE 1970S HE HELPED ENGINEER THE CHRYSLER CORP BAILOUT EVER SINCE HE HAS WON MANY SKIRMISHES AS ONE OF CORPORATE AMERICA'S HIGHESTPAID REPRESENTATIVES FIRST FOR THE PREMIER LOBBYING FIRM TIMMONS & CO AND THEN AS HEAD OF HILL & KNOWLTON'S LOBBYING OFFICE HERE HIS NEW JOB HE SAYS IS THE FULFILLMENT OF A DREAM IF YOU ARE A LOBBYIST WHAT GREATER HONOR THAN TO BE THE PRESIDENT'S LOBBYIST HE WAS SO INTENT ON ENTERING THE WHITE HOUSE THAT HE HAD AN ESCAPE CLAUSE WRITTEN INTO HIS CONTRACT WITH HILL & KNOWLTON ALLOWING HIM TO BOLT IF THE CLINTON ADMINISTRATION OFFERED HIM A JOB THEY COULD NOT HAVE PICKED A BETTER PERSON FOR THE JOB SAYS NICHOLAS CALIO HEAD OF PRESIDENT BUSH'S LOBBYING OFFICE HE HAS SPENT YEARS IN TRAINING FOR THIS KIND OF JOB HE UNDERSTANDS THE POLITICS BOTH INSIDE AND OUTSIDE OF WASHINGTON BUT THE CLINTON TEAM IS UP AGAINST THE FACT THAT EVEN THE MOST FUNDAMENTAL FACTS OF LEGISLATIVE LIFE ARE TOPSYTURVY FOR EXAMPLE THE VERY NOTION OF WORKING AS A TEAM WITH THE WHITE HOUSE IS ALIEN TO MOST CONGRESSIONAL DEMOCRATS MY POLITICAL REFLEXES ARE ALL WRONG I'M CONDITIONED TO BE AN OUTSIDER SAYS SIXTERM DEMOCRATIC REP RICHARD DURBIN OF ILLINOIS THIS IS A NEW EXPERIENCE FOR ME AND HOW DO LAWMAKERS GET ACCUSTOMED TO THIS NEW REALITY THEY LEAN ON HOWARD PASTER IT USED TO BE I WOULDN'T EVEN TRY TO CALL AND CHANGE THINGS BECAUSE I KNEW IT WOULD BE USELESS SAYS DEMOCRATIC REP CHARLES SCHUMER OF NEW YORK NOW THE FIRST STEP IS HOWARD PASTER MR PASTER SPENDS MOST OF HIS DAY ON THE PHONE EVER DEFERENTIAL TO MEMBERS OF CONGRESS HE IS BOISTEROUS SARCASTIC AND DEMANDING WITH HIS STAFF WHOM HE INVARIABLY ADDRESSES AS SPORTS FANS A REMNANT OF HIS DAYS LOBBYING ON BEHALF OF PROFESSIONAL BASEBALL AFTER MR CLINTON'S SPEECH TO CONGRESS LAST WEEK MR PASTER JOKINGLY THANKED HIM FOR LISTING SO AMBITIOUS A LEGISLATIVE PROGRAM THE PRESIDENT REPLIED ONLY HALF IN JEST WAIT UNTIL YOU SEE WHAT I HAVE IN MIND FOR NEXT YEAR 9302260104 930226 REVIEW & OUTLOOK EDITORIAL OPPORTUNITY IN LONDON TREASURY SECRETARY LLOYD BENTSEN TROTS OFF TO LONDON THIS WEEKEND FOR HIS FIRST MEETING WITH THE GROUP OF SEVEN HE AND HIS COUNTERPARTS DON'T SEE ANY PARTICULAR NEED FOR AN OFFICIAL COMMUNIQUE BUT WORDS MATTER AND RIGHT NOW ENOUGH TROUBLING FLAGS ARE FLYING THAT THE WORLD COULD USE A STRONG SIGNAL THAT THE US PRESIDENT IS UNAMBIGUOUSLY COMMITTED TO AN OPEN TRADING SYSTEM OTHERWISE WE MAY BE ROLLING TOWARD THE PROTECTIONIST PRECIPICE WITH ITS DOMESTIC ECONOMY IN RECESSION JAPAN'S TRADE SURPLUS HAS GONE THROUGH THE ROOF THAT HAS INFLAMED ECONOMIC ILLITERATES IN CONGRESS AND CREATED A FRESH OPENING FOR INDUSTRIES LOOKING TO BE EXCUSED FROM COMPETING MEANWHILE FRANCE'S UNPOPULAR SOCIALISTS ARE READY TO TEAR UP GATT TO APPEASE THE FARM VOTE WHILE MORE SENSIBLE POLITICIANS IN BRITAIN AND GERMANY ARE TOO BUSY FLOUNDERING WITH SICK ECONOMIES TO PUT UP MUCH RESISTANCE IN MEXICO PUBLIC SUPPORT FOR NAFTA REMAINS STRONG BUT DOUBTS ABOUT THE CLINTONITES' COMMITMENT DISCONCERT THE COUNTRY'S LEADERS WITH BRIAN MULRONEY RESIGNING IN CANADA NORTH AMERICA DOESN'T NEED THE LEADER OF MEXICO SUDDENLY UNDERMINED BY US AMBIVALENCE AMERICA'S PRESIDENT IS THE CLOSEST THING THE WORLD HAS TO A LEADER IF ANYBODY HAS THE JOB OF AVERTING A GLOBAL TRADE WAR HE DOES MR CLINTON WAS ABLE TO BOB AND WEAVE HIS WAY PAST THE TRADE ISSUE DURING THE MICHIGAN PRIMARY BUT NOW HE'S PLAYING TO A LESS EASILY IMPRESSED GLOBAL AUDIENCE AND THE TIMES CALL FOR LEADERSHIP THE MESSAGE NEEDS TO BE SIMPLE LOUD AND CLEAR IT HASN'T BEEN ON THE CONTRARY SOME OF THE NOISES COMING OUT OF THE ADMINISTRATION SOUND MORE LIKE A STARTER'S GUN FOR A GLOBAL PROTECTIONIST FREEFORALL AFTER HIS VISIT TO THE WHITE HOUSE THE BEST THAT BRITAIN'S JOHN MAJOR COULD MUSTER WAS A VAGUE SENSE THAT THE PRESIDENT IS A FREE TRADER WE WONDER HOW THAT COMPARES WITH THE SENSE THAT MR CLINTON CONVEYED TO THE BOEING WORKERS ON TUESDAY THE PRESIDENT SOUNDED READY TO DECLARE A TRADE WAR AGAINST EUROPE AND AIRBUS ON CUE BILLS MATERIALIZED THE NEXT DAY IN CONGRESS TO SLAP DUTIES ON INCOMING JETS AND DISH OUT SUBSIDIES TO AMERICA'S OWN PLANE MAKERS BEYOND THIS MR CLINTON'S CHOICE OF ASSOCIATES WHATEVER THEIR OTHER MERITS HASN'T REASSURED THE GLOBAL COMMUNITY LAURA TYSON'S LAST BOOK WAS CALLED WHO'S BASHING WHOM AND LAID OUT THE SCRIPT FOR HIS BOMBAST AT BOEING AND OTHER STRATEGIC TRADE SCENARIOS RON BROWN AND MICKEY KANTOR A COUPLE OF CAREER LOBBYISTS INHERITED THE TRADE NEGOTIATIONS PORTFOLIO DETROIT'S AUTO MAKERS RECENTLY BACKED OFF A PLAN TO SUE THE JAPANESE AND EUROPEANS AFTER THEY SMELLED A CONSUMER REVOLT ON WEDNESDAY MR BROWN MADE THE FANTASTIC SUGGESTION THAT MAYBE THE ADMINISTRATION WOULD FILE THE CHARGES ITSELF IT'S CLEAR THAT THE ADMINISTRATION IS DANGLING THE PROTECTIONIST TEMPTATION BEFORE SELECTED INDUSTRIES FOR PURPOSES OF BUILDING A DOMESTIC COALITION BUT THIS ISN'T ARKANSAS AND ALL POLITICS AREN'T LOCAL ANYMORE THE ADMINISTRATION'S TRADE SIGNALS ARE ALREADY SENDING OUT RIPPLES THAT HAVE CONSEQUENCES IN THE WORLD ON PRACTICALLY ITS FIRST DAY THE WHITE HOUSE WAVED THROUGH STEEP TARIFFS ON EUROPEAN STEEL WELL THE EUROPEANS NOW ARE TRYING TO APPEASE THEIR OWN STEEL LOBBY BY SHUTTING OUT PRODUCERS FROM EASTERN EUROPE AND THIS WEEK THE EUROPEAN COMMUNITY SET A MINIMUM PRICE ON SPECIFIC FISH IMPORTS FROM RUSSIA AND POLAND WE'RE SUPPOSED TO BE HELPING THESE STRUGGLING FOLKS JOIN THE WORLD NOT BANKRUPTING THEIR FLEDGLING DEMOCRACIES DOWN SOUTH MEXICO'S REFORMS ARE REACHING A CRUCIAL STAGE SOME 85 MILLION PEOPLE ARE MAKING THE LEAP FROM STATIST STAGNATION TO A LIFE THAT MIDDLE CLASS AMERICANS MIGHT RECOGNIZE NAFTA HAS BECOME A SYMBOL OF THIS HARDWON PROGRESS ITS FAILURE COULD COST PRESIDENT SALINAS HIS JOB AND SET BACK THE CAUSE OF LIBERALIZATION AND GROWTH IN MEXICO PRESUMABLY IT'S IN AMERICA'S INTEREST FOR MR SALINAS TO SUCCEED YET MR CLINTON HAS BEEN ON SEVEN SIDES OF NAFTA AT SOME POINT DURING THE CAMPAIGN WE SEEM TO RECALL HIM FINALLY ENDORSING THE DEAL BUT THE MEXICANS SENT HERE TO PUT ON THE FINISHING TOUCHES SUDDENLY HAVE DOUBTS AFTER MEETING WITH PEOPLE INSIDE THE CLINTON ADMINISTRATION AMID ALL THIS WE HAVE THE PUZLEMENT OVER THE CLINTON ECONOMIC PLAN ONE DISSENTING SCHOOL HOLDS THAT NEXT YEAR THE ADMINISTRATION WILL BE LEANING ON ALAN GREENSPAN'S FED TO INFLATE US OUT OF TROUBLE LOOKING AT THESE WORLD TRENDS WE'RE MORE WORRIED ABOUT THE OPPOSITE THAT IN A DEFLATION DRIVEN BY PROTECTIONIST ACTIONS MONETARY POLICY WILL BE DISARMED THIS WEEKEND'S G7 MEETING IN LONDON IS THE RIGHT SETTING FOR THE CLINTON PRESIDENCY TO SEND THE WORLD THE MESSAGE THAT IT IS FINALLY READY TO STOP THE CAMPAIGN AND BEGIN TO GOVERN 9302260103 930226 POTOMAC WATCH CLINTON PLAYS HAMMER AND HUG WITH BUSINESS BY PAUL A GIGOT THE PRESIDENT WHO SAID HE'D CUT TAXES ON THE MIDDLE CLASS HAS SPENT THIS WEEK PERSUADING THE BUSINESS CLASS THAT IT SHOULD TRUST HIM TO RAISE TAXES LISTENERS WHO LONG TO BELIEVE MIGHT PONDER THE LOST ILLUSIONS OF ROY VAGELOS DR VAGELOS IS THE CHIEF EXECUTIVE OF MERCK & CO THE BIG DRUG MAKER AND FOR SEVEN STRAIGHT YEARS FORTUNE MAGAZINE'S MOST ADMIRED AMERICAN COMPANY ONLY LAST SEPTEMBER CANDIDATE CLINTON ADMIRED MERCK TOO HE USED ITS NEW JERSEY OFFICES AS A SPEECH BACKDROP HE HAILED ITS POLICY ON PRICING DRUGS DECLARING THAT THIS COMPANY REPRESENTS WHAT WE CAN DO AS AMERICANS IF WE SET OUR MINDS TO IT THEN MR CLINTON WAS ELECTED TWO WEEKS AGO DR VAGELOS WAS ASTONISHED WHEN MR CLINTON SET HIS MIND TO TORCHING THE AMERICAN PHARMACEUTICAL INDUSTRY MERCK INCLUDED FOR PUTTING SHOCKING PROFITS AHEAD OF POOR CHILDREN MERCK'S STOCK PRICE HAS FALLEN BY 23 IN A YEAR 12 SINCE JANUARY ALONE STRIPPING 10 BILLION IN CAPITAL FROM A HIGHTECH HIGHEXPORT BUSINESS THE LARGER INDUSTRY HAS LOST ABOUT 40 BILLION SINCE LAST FEBRUARY ABOUT HALF THAT SINCE JANUARY ALL DESPITE A RALLY THIS WEEK EVEN DEAD CATS BOUNCE EXPLAINS PAINEWEBBER'S RON NORDMANN IT WAS A SHOCK TO BE SLAMMED LIKE THAT LAMENTS DR VAGELOS WHO ROSE THROUGH THE RANKS AS A SOFTSPOKEN SCIENTIST DR VAGELOS IS A BABE IN THE WOODS OF POLITICS BUT THE EPISODE ALSO REVEALS MUCH ABOUT THE CHARACTER AND METHOD OF THE MAN WHO NOW SITS IN THE OVAL OFFICE ALL PRESIDENTS ABANDON CAMPAIGN PROMISES BUT MR CLINTON HAS MANAGED IT WITH A FLAIR AND CASUALNESS THAT ARE TRULY REMARKABLE MAYBE DAN QUAYLE WAS RIGHT WHEN HE USED PULLING A CLINTON AS A SYNONYM FOR FLIPFLOP THE LATEST EXAMPLE IS HIS ECONOMIC PLAN WHICH IS FLOATING TOWARD PASSAGE ON A TIDE OF PUBLIC HOPE GIVE HIM A CHANCE SAYS MUCH OF MY MAIL BUT AS VIRTUALLY EVERY ANALYST LEFT OR RIGHT IS DISCOVERING THE PLAN BEARS LITTLE RELATION TO WHAT HE SAYS ABOUT IT ON TAXES FOR EXAMPLE HIS INCOME THRESHOLD FOR INCREASES HAS SLIPPED FROM 200000 DURING THE CAMPAIGN TO 180000 STATE OF THE UNION SPEECH TO 30000 THE PRINTED DETAILS NOW THE FINER PRINT REVEALS IT IS ACTUALLY 20000 BECAUSE THE CLINTON PLAN DEFINES INCOME TO INCLUDE SUCH NONCASH INCOME AS FRINGE BENEFITS AND THE IMPUTED RENTAL VALUE OF A FAMILY HOME THIS LEGERDEMAIN HAS EVEN SUCH FRIENDLY WRITERS AS DAVID BRODER WARNING MR CLINTON ABOUT HIS TRUST DEFICIT WHICH MAKES THE VAGELOS BETRAYAL SO POIGNANT DURING THE CAMPAIGN MR CLINTON SCHMOOZED HIM PERSONALLY AT DECEMBER'S ECONOMIC SUMMIT IN LITTLE ROCK HE SAT ACROSS FROM BILL AND HILLARY MR CLINTON ASKED HIM FOR THE NATION'S TV CAMERAS TO TALK ABOUT GETTING VACCINES TO POOR CHILDREN I TALKED ABOUT THE EXPERIMENT IN PHILADELPHIA TO BRING TOGETHER INNERCITY CHILDREN WHO HADN'T BEEN IMMUNIZED HE SAYS DR VAGELOS EXPLAINED THAT THE PROBLEM WASN'T VACCINE PRICE BUT A BREAKDOWN IN THE PUBLICDELIVERY SYSTEM THE PRESIDENT SMILED AND SHOOK HIS HEAD HE RECALLS WE HAD I THOUGHT THIS VERY GOOD UNDERSTANDING NOW AFTER THE PUBLIC ATTACKS DR VAGELOS CAN'T GET MR CLINTON ON THE PHONE EVEN HILLARY CLINTON THE HEALTHCARE CZAR IS TOO BUSY TO TALK HEALTH SECRETARY DONNA SHALALA CALLED AFTER DR VAGELOS TOOK OUT NEWSPAPER ADS BUT SHE OFFERED NO RELIEF NEW JERSEY'S TWO DEMOCRATIC SENATORS HAVE TRIED TO INTERCEDE BUT TO NO AVAIL EVER HOPEFUL OR NAIVE DR VAGELOS ASSUMES ALL OF THIS IS JUST A PASSING PHASE ATTRIBUTABLE TO A FEW OF MR CLINTON'S POLITICAL ADVISERS BUT DOES HE FEEL SOME NOSTALGIA FOR GRIDLOCK DARN RIGHT HE REPLIES WHAT DR VAGELOS DOESN'T YET UNDERSTAND IS MR CLINTON'S POLITICAL STRATEGY FOR DIVIDING BUSINESS ELITES THE PRESIDENT KNOWS HE NEEDS SOME BUSINESS SUPPORT TO HAVE CREDIBILITY BUT HE ALSO NEEDS VILLAINS TO SUSTAIN HIS POPULIST SOAKTHERICH RHETORIC SO HE WANTS TO RAISE TAXES ON ALL BUSINESSES THEN TURN AROUND AND DISPENSE SUBSIDIES AND PROTECTION TO A SYMBOLIC FEW SUCH AS COMPUTERS THIS HAMMERANDHUG STRATEGY IS AS OLD AS MACHIAVELLI WHO KNEW IT WAS BETTER TO BE FEARED THAN LOVED DRUG COMPANIES MAKE RIPE VILLAINS BECAUSE THEY ARE CAPITAL INTENSIVE SO EMPLOY RELATIVELY FEW WORKERS AND ARE BASED IN FEW STATES SO HAVE LESS SENATE SUPPORT THEY ALSO MAKE PRODUCTS THAT ARE THE ONLY MAJOR HEALTHCARE EXPENSE TYPICALLY UNCOVERED BY INSURANCE OF COURSE THEY ARE ALSO EXAMPLES OF THE HIGHTECH COMPANIES THAT AS MR CLINTON LIKES TO SAY MUST INVEST TO COMPETE IN THE GLOBAL ECONOMY AND DRUG STOCKS ARE HELD NOT JUST BY THE RICH BUT BY LABOR PENSION FUNDS MUTUAL FUNDS AND RETIREE IRAS IN ANY EVENT MR CLINTON KNOWS THAT MANY BUSINESSMEN STILL YEARN TO BELIEVE SELLING HIS PLAN TO THE US CHAMBER OF COMMERCE THIS WEEK HE DECLARED THAT I'M SURE AFTER NOW ALMOST FIVE WEEKS IN OFFICE THAT THERE ARE MORE CUTS COMING IN SPENDING THE AUDIENCE APPLAUDED AN AP REPORTER CALLED WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS TO FOLLOW UP THE PRESIDENT MR STEPHANOPOULOS INFORMED THE REPORTER HAD NO SPECIFIC CUTS IN MIND AND NO SCHEDULE FOR MAKING THEM 9302260102 930226 WORLD MARKETS STOCKS IN TOKYO FRANKFURT GET TECHNICAL LIFTS LONDON PRICES GAIN ON RALLY IN CHEMICAL SECTOR A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS POSTED MODERATE GAINS THURSDAY IN TECHNICALLY DRIVEN DEALINGS THE YEN'S EASING AGAINST THE DOLLAR PUSHED EXPORTERS INTO THE PLUS COLUMN AFTER A RECENT LOSING STREAK LONDON PRICES ENDED NEAR THE DAY'S PEAKS LED UP BY A RALLY IN THE CHEMICAL SECTOR FRANKFURT STOCKS GAINED IN A TECHNICAL BOUNCE AFTER TWO DAYS OF HEAVY LOSSES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 6421 POINTS WEDNESDAY ROSE 10845 TO 1690739 ON FRIDAY IN TOKYO THE NIKKEI ROSE 3211 POINTS TO CLOSE THE MORNING SESSION AT 1693950 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES UP FROM 2206 MILLION SHARES WEDNESDASY GAINERS NARROWLY TOPPED DECLINERS 474451 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 603 POINTS WEDNESDAY ADDED 292 TO 127820 SENTIMENT IMPROVED A BIT BECAUSE OF THE RELAXED YEN AND A STRONG SHOWING WEDNESDAY ON WALL STREET JAPANESE EXPORTERS HAVE BEEN DOGGED BY THE YEN'S RECENT FIRMNESS WHICH HURTS RETURNS FROM OVERSEAS SALES YET TRADING WAS UNINSPIRED AS MANY INVESTORS TOOK A WAITANDSEE ATTITUDE PRIOR TO TOMORROW'S MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS' FINANCE MINISTERS AND CENTRAL BANK GOVERNORS IN LONDON WHERE FOREIGNEXCHANGE ACTIONS MAY EMERGE STOCKS RECEIVED SUPPORT BUYING BY PUBLIC PENSION FUNDS IN MORNING TRADING AND AGAIN IN THE AFTERNOON AS THE NIKKEI SLOUCHED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 117 POINTS TO 28287 THE FT 30STOCK INDEX ROSE 36 POINTS TO 21765 VOLUME WAS 6205 MILLION SHARES COMPARED WITH 5927 MILLION SHARES A DAY EARLIER THE MARKET WAS BOOSTED BY IMPERIAL CHEMICAL INDUSTRIES'S CLIMB OF 705 PENCE OR 65 TO 1152 1647 DIRECTORS APPROVED SPLITTING OFF THE ZENECA DRUG BUSINESS AS A SEPARATE COMPANY IN JUNE WHEN ZENECA PLANS A 13 BILLION SHARE ISSUE TO LOWER ITS DEBT TO ICI ICI ALSO POSTED A 1992 PRETAX LOSS OF 384 MILLION AFTER A SPECIAL CHARGE OF 949 MILLION FOR THE ZENECA AND OTHER RESTRUCTURING MOVES COMPARED WITH YEAREARLIER PROFIT OF 843 MILLION ICI WHICH IS VIEWED AS THE BRITISH INDUSTRY BELLWETHER SAID ITS 1993 PROSPECTS ARE BETTER THE RISE IN ICI STOCK ALSO WAS LINKED TO A BELIEF THAT ITS PRICE HAD ALREADY DISCOUNTED A WORSTCASE SCENARIO BEFORE THE POSTING OF ITS FINANCIAL RESULTS AND SOME INVESTORS NOTED THAT ICI WON'T TAP INVESTORS FOR CASH UNTIL LATER IN THE YEAR BUT EVEN AMID THE GAINS SOME INVESTORS WERE RELUCTANT IN GENERAL TO COMMIT SIGNIFICANT AMOUNTS OF FRESH FUNDS TO THE MARKET AHEAD OF BRITAIN'S ANNUAL BUDGET STATEMENT ON MARCH 16 IN FRANKFURT THE DAX 30STOCK INDEX GAINED 1467 POINTS TO 165891 NEAR THE INTRADAY HIGH OF 165939 ADVANCERS OUTPACED DECLINERS 282 PRICES ROSE GRADUALLY FOR MOST OF THE SESSION AS THE BENCHMARK AVERAGE PIERCED A PERCEIVED RESISTANCE LEVEL OF 1650 FOREIGN INVESTORS WITH EXTRA CASH SAW A BUYING OPPORTUNITY MANY INVESTMENT FUNDS ABROAD REMAIN UNDERWEIGHTED IN GERMAN EQUITIES AND WITH EXPECTATIONS THAT GERMAN INTEREST RATES WILL DROP THESE INVESTORS DECIDED TO PLOW SOME OF THEIR SPARE LIQUIDITY INTO STOCKS DESPITE SIGNALS THAT GERMANY HAS ENTERED A RECESSION AND THAT COMPANY EARNINGS ARE FALLING BROADLY THROUGHOUT THE ECONOMY MOST OTHER EUROPEAN BOURSES PUT IN MIXED PERFORMANCES BUT IN STOCKHOLM AFTER TWO SESSIONS OF DECLINES SHARE PRICES REBOUNDED IN HEAVY TRADING SPURRED BY A RALLY IN THE PHARMACEUTICAL SECTOR AND CONTINUED GAINS FOR BANKING ISSUES PARIS STOCKS STAGNATED NEAR SESSION LOWS DURING SLOW AFTERNOON ACTIVITY AND FINISHED MODERATELY LOWER SYDNEY SHARES FOLLOWING A WEAK MORNING SESSION TURNED UPWARD AS PRICES SOARED FOR SHORTTERM DEBT SECURITIES AND AUSTRALIA'S POLITICAL OPPOSITION COALITION SAID INTEREST RATES WOULD FALL IF IT WON THE MARCH 13 ELECTION SINGAPORE SHARES CLOSED NARROWLY MIXED AFTER RENEWED BUYING SENT PRICES UP FROM LEVELS BATTERED BY PROFITTAKING TAIPEI SHARES CLIMBED ON STRENGTH IN THE BANKING SECTOR SEOUL PRICES PLUNGED AS WIDESPREAD EUPHORIA ABOUT KIM YOUNG SAM'S INAUGURATION AS SOUTH KOREA'S PRESIDENT FAILED TO WORK ITS WAY INTO THE STOCK MARKET THE SELLING SPREE BEGAN AFTER INVESTORS NOTED MR KIM'S SPEECH LACKED ANY DETAILS ABOUT THE MARKET FEARS ABOUT HIS ECONOMIC REFORMS CONTINUED TO HURT PRICES WHICH ALREADY WERE UNDER PRESSURE FROM DECLINING INVESTOR DEPOSITS AT BROKERAGE FIRMS AND SLACKENING DAILY TRADING VOLUME AMONG OTHER CORPORATE DEVELOPMENTS IN TOKYO ASAHI GLASS GAINED 11 YEN OR 11 TO 995 YEN 847 THE GLASS MAKER'S 1992 CONSOLIDATED PRETAX PROFIT SLUMPED 29 TO 4488 BILLION YEN 382 MILLION FROM A YEAR EARLIER BECAUSE OF SLUGGISH DEMAND FOR GLASS PRODUCTS FROM CLIENTS SUCH AS AUTO AND HOUSEHOLD APPLIANCE MAKERS SOFTENING MARKET PRICES FOR CHEMICALS AND DEPRECIATION EXPENSES FOR PAST CAPITAL OUTLAYS BUT ASAHI EXPECTS EARNINGS TO RISE THIS YEAR IN LONDON BRITISH GAS FINISHED AT 289 PENCE 413 UNCHANGED THE UTILITY'S 1992 PROFIT ATTRIBUTABLE TO SHAREHOLDERS ON A CURRENTCOST BASIS WHICH EXCLUDES ENERGYPRICE MOVEMENTS SANK 49 TO 473 MILLION 6762 MILLION BECAUSE OF WARM WEATHER AND INCREASED COMPETITION THE DIVIDEND WAS RAISED TO 142 PENCE A SHARE COMPARED WITH A PRO FORMA YEAREARLIER PAYOUT OF 134 PENCE A SHARE A DIRECT COMPARISON ISN'T POSSIBLE BECAUSE THE FISCAL YEAR THAT HAD ENDED MARCH 31 WAS CHANGED TO A CALENDARYEAR BASIS BRITISH GAS ALSO SAID A RESTRUCTURING OF ITS UK GAS BUSINESS WILL RESULT IN 3200 JOB CUTS THIS YEAR IN ADDITION TO 1200 POSTS TO BE ELIMINATED IN A LONDON HEADQUARTERS STREAMLINING THE COMPANY HAS ABOUT 80000 EMPLOYEES ROYAL INSURANCE HOLDINGS ENDED AT 285 PENCE UNCHANGED THE PRETAX LOSS FOR 1992 NARROWED TO 119 MILLION FROM A YEAREARLIER DEFICIT OF 373 MILLION ON AN IMPROVEMENT IN THE INSURER'S BRITISH AND US UNDERWRITING THE RESULTS WERE IN LINE WITH MARKET EXPECTATIONS AS WAS THE 56 CUT IN THE DIVIDEND TO 5 PENCE A SHARE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9302260101 930226 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH UNITS GET JOB IN THAILAND WORTH UP TO 273 MILLION AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID TWO OF ITS UNITS RECEIVED A CONTRACT WORTH AS MUCH AS 273 MILLION FROM TELECOMASIA CORP TO MODERNIZE THAILAND'S TELECOMMUNICATIONS NETWORK AT&T THAILAND AND AT&T NETWORK SYSTEMS WILL SUPPLY TELECOMASIA WITH TRANSMISSION AND SWITCHING EQUIPMENT AND SERVICES FOR 350000 LINES AT&T SAID THAT IT WILL INSTALL 100000 LINES NEXT YEAR AND THAT IT WILL COMPLETE THE 350000 LINES WITHIN FOUR YEARS AT&T THAILAND WAS ESTABLISHED IN BANGKOK IN 1985 TO MARKET SYSTEMS PRODUCTS AND SERVICES DEVELOPED BY AT&T BELL LABORATORIES AT&T HAS TWO MANUFACTURING FACILITIES IN THE COUNTRY AND A JOINT VENTURE THAT MAKES COPPER EQUIPMENT FOR THE THAI MARKET TELECOMASIA FORMERLY KNOWN AS CP TELECOMMUNICATION IS A SUBSIDIARY OF CHAROEN POKPHAND GROUP 9302260100 930226 GENERAL MOTORS TO IDLE 2 PLANTS SCHEDULES OVERTIME AT 8 OTHERS DETROIT GENERAL MOTORS CORP SAID SLOW SALES WILL FORCE IT TO IDLE FOR ONE WEEK ITS ASSEMBLY PLANTS IN WILMINGTON DEL AND YPSILANTI MICH MEANWHILE THE AUTO MAKER HAS SCHEDULED OVERTIME NEXT WEEK AT ITS CAR AND TRUCK FACILITIES IN SPRING HILL TENN BOWLING GREEN KY MORAINE OHIO FLINT AND PONTIAC MICH FORT WAYNE IND JANESVILLE WIS AND OSHAWA ONTARIO FORD MOTOR CO SAID IT WILL SHUT FOR ONE WEEK ITS ASSEMBLY PLANTS IN WAYNE MICH AND ST PAUL MINN BECAUSE OF SLOW SALES THE AUTO MAKER WILL ALSO IDLE FOR A WEEK ITS PLANT IN EDISON NJ BECAUSE OF A SHORTAGE OF PARTS FORD HAS PLANNED OVERTIME AT ITS ASSEMBLY PLANTS IN WIXOM MICH ATLANTA CHICAGO KANSAS CITY MO LORAIN OHIO AVON LAKE OHIO AND ST LOUIS CHRYSLER CORP PLANNED OVERTIME AT ITS ASSEMBLY PLANTS IN ST LOUIS DETROIT WINDSOR ONTARIO WARREN MICH AND BELVIDERE ILL ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 222252 TOTAL VEHICLES THIS WEEK UP 214 FROM 183021 VEHICLES BUILT IN THE SAME PERIOD A YEAR AGO 9302260099 930226 REVIEW & OUTLOOK EDITORIAL ASIDES DETAILS DETAILS FOR THOSE BEGINNING TO WORRY ABOUT THE MATTER OF GETTING A PRECISE HANDLE ON WHAT THE CLINTON FOLKS ARE UP TO SIGNS SUGGEST IT MAY GET WORSE BEFORE IT GETS BETTER TESTIFYING THIS WEEK ON JUST WHO WILL BE PAYING WHAT UNDER THE CLINTON TAX PROPOSALS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE CONCEDED THAT THE ADMINISTRATION'S DEFINITION OF FAMILY ECONOMIC INCOME IS BROAD AND PROBABLY NOT RECOGNIZABLE TO THE AVERAGE PERSON MEANWHILE WE NOW LEARN THAT THE DETAILED VERSION OF THE CLINTON BUDGET IS BEING FINETUNED AND ITS RELEASE WILL BE DELAYED BY TWO WEEKS UNTIL APRIL 5 BUT HOUSE DEMOCRATS SAY THEY PLAN TO HOLD A VOTE ON A BUDGET RESOLUTION BETWEEN MIDMARCH AND EARLY APRIL HOW CAN THIS BE NO PROBLEM SAYS HOUSE MAJORITY LEADER RICHARD GEPHARDT THEY'VE ALREADY SUPPLIED US WITH ENOUGH NUMBERS AND DETAILS TO WRITE A BUDGET RESOLUTION 9302260098 930226 AIG PROFIT ROSE 15 EQUITABLE NARROWED LOSS IN 4TH QUARTER NEW YORK AMERICAN INTERNATIONAL GROUP INC REPORTED A 15 RISE IN FOURTHQUARTER PROFIT AND EQUITABLE COS NARROWED ITS LOSS IN THE PERIOD AIG'S BETTERTHANEXPECTED RESULTS BOOSTED ITS STOCK FOR AIG THE NATION'S LARGEST INVESTOROWNED INSURANCE COMPANY STRONG GROWTH IN FINANCIAL SERVICES AND WORLDWIDE LIFE INSURANCE OPERATIONS HELPED OVERCOME A DECLINE IN CAPITAL GAINS FOR ITS PROPERTY AND CASUALTY BUSINESS AIG REPORTED A QUARTERLY PROFIT OF 4589 MILLION OR 216 A SHARE COMPARED WITH 3998 MILLION OR 187 A SHARE THE YEAR EARLIER REVENUE ROSE 81 TO 486 BILLION FROM 45 BILLION FOR ALL OF 1992 PROFIT ROSE 67 TO 166 BILLION OR 780 A SHARE FROM 155 BILLION OR 728 A SHARE REVENUE INCREASED TO 1839 BILLION FROM 1688 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AIG SHARES CLOSED AT 12050 UP 4 EQUITABLE THE NATION'S FIFTHLARGEST LIFE INSURER REPORTED A FOURTHQUARTER NET LOSS OF 289 MILLION OR 26 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 2469 MILLION PERSHARE RESULTS WEREN'T AVAILABLE BECAUSE EQUITABLE WASN'T PUBLICLY OWNED A YEAR AGO THE PRIOR PERIOD'S LOSS STEMMED IN PART FROM LOSSES ON ITS INVESTMENTS AND ITS DISCONTINUED GUARANTEED INVESTMENT CONTRACT BUSINESS FOR ALL OF 1992 EQUITABLE HAD A LOSS OF 1286 MILLION OR EIGHT CENTS A SHARE AFTER GOING PUBLIC IN JULY VERSUS A LOSS OF 898 MILLION IN 1991 WHEN THE COMPANY POSTED LARGE LOSSES ON REALESTATE INVESTMENTS IN THE FOURTH QUARTER EQUITABLE'S REVENUE FELL TO 137 BILLION FROM 142 BILLION FOR THE YEAR REVENUE ROSE TO 628 BILLION FROM 612 BILLION IN COMPOSITE TRADING ON THE BIG BOARD YESTERDAY EQUITABLE COMMON CLOSED AT 18625 UP 125 CENTS 9302260097 930226 HEARD ON THE STREET AS CASH FLOWS TO STOCK FUNDS SMALL INVESTORS SWAY SKEPTICS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU'RE WONDERING WHICH WAY THE STOCK MARKET IS HEADED DON'T BOTHER LISTENING TO THE MARKET PUNDITS OR THE BIGTIME MONEY MANAGERS TRY ASKING YOUR NEIGHBORS INSTEAD HOW COME SMALL INVESTORS THROUGH THEIR PURCHASES OF STOCK MUTUAL FUNDS HAVE EMERGED AS THE MAJOR DRIVING FORCE THAT HAS PROPELLED THE DOW JONES INDUSTRIAL AVERAGE TO YESTERDAY'S CLOSE OF 336514 ALMOST 1000 POINTS ABOVE THE OCTOBER 1990 BEAR MARKET LOW THE ONE STRONG AREA OF STOCKMARKET PURCHASES IS THE PUBLIC BUYING STOCK MUTUAL FUNDS SAYS JIM CRAIG MANAGER OF THE 66 BILLION JANUS FUND I CONSIDER IT THE KEY FLOW OF MONEY INTO THE STOCK MARKET IF THAT WAS TO DRY UP I THINK IT WOULD BE A PROBLEM FOR THE MARKET FOR THE MOMENT MR CRAIG DOESN'T HAVE TO WORRY AROUND THE MUTUAL FUND INDUSTRY SIGNS OF THE FRENZIED ENTHUSIASM FOR STOCK FUNDS ARE EVERYWHERE THE INVESTMENT COMPANY INSTITUTE THE FUND INDUSTRY'S TRADE GROUP YESTERDAY RELEASED NUMBERS SHOWING THAT INVESTORS POURED AN UNPRECEDENTED 102 BILLION INTO STOCK FUNDS IN JANUARY SURPASSING THE PREVIOUS RECORD OF 99 BILLION SET IN NOVEMBER THESE FIGURES REFLECT STOCK FUND SALES LESS REDEMPTIONS PLUS THE NET EFFECT OF SWITCHES BETWEEN STOCK FUNDS AND OTHER FUNDS IN THE SAME FUND GROUP REINVESTED DIVIDENDS ARE EXCLUDED BOND FUNDS ALSO REMAIN HUGELY POPULAR ATTRACTING 105 BILLION IN JANUARY THAT MONEY HAS HELPED FUEL THE RECENT BOND RALLY MUTUAL FUND COMPANIES SAY STOCK FUND SALES REMAINED ROBUST THIS MONTH JANUARY'S SALES WENT THROUGH THE ROOF AND FEBRUARY LOOKS EVEN STRONGER SAYS NEAL LITVACK A SENIOR VICE PRESIDENT WITH FIDELITY INVESTMENTS THE COUNTRY'S LARGEST MANAGER OF STOCK MUTUAL FUNDS FEBRUARY IS ANOTHER DEFINITE RECORD THE RECENT ROCKY STOCK MARKET HAS DONE NOTHING TO DAMP THE ARDOR OF MUTUAL FUND INVESTORS ACCORDING TO A SURVEY DONE FOR FIDELITY BY THE UNIVERSITY OF MICHIGAN SURVEY RESEARCH CENTER THE SURVEY FOUND THAT 56 OF FUND INVESTORS PLAN TO ADD TO THEIR STOCK FUND HOLDINGS IN THE NEXT THREE MONTHS THAT'S THE HIGHEST FIGURE RECORDED IN THE THREE YEARS THAT THE SURVEY HAS BEEN CONDUCTED THE TORRENT OF CASH IS DISRUPTING THE WAY MUTUAL FUNDS ARE MANAGED SOME HIGHLY REGARDED FUNDS HAVE STARTED TURNING AWAY NEW INVESTORS ONLY YESTERDAY LINDNER DIVIDEND FUND ANNOUNCED THAT ON MARCH 4 IT WILL TEMPORARILY CLOSE TO NEW INVESTORS BRIAN BLOMQUIST A VICE PRESIDENT WITH LINDNER FUNDS IN ST LOUIS NOTES THAT THE FUND'S ASSETS HAVE MORE THAN TRIPLED IN THE PAST YEAR TO 1 BILLION WE'RE GETTING 50 MILLION A WEEK INTO THE FUND HE SAYS IN THE PAST SUCH FEVERISH BUYING OF STOCK FUNDS WOULD HAVE BEEN TAKEN AS A DANGER SIGNAL WALL STREET CYNICS SAW FUND INVESTORS AS THE DUMB MONEY CROWD PEOPLE WHO FLOCKED TO THE STOCK MARKET AFTER PRICES HAD ALREADY RISEN SHARPLY AND WERE RIPE FOR A TUMBLE THE CYNICS' CONCLUSION WHEN THE DUMB MONEY WAS BUYING HEAVILY THE SMART MONEY SHOULD SELL THAT SORT OF REASONING PAID OFF HANDSOMELY IN 1987 THE LAST TIME INVESTORS WERE HEAVY PURCHASERS OF STOCK FUNDS BUT JANUS'S MR CRAIG RECKONS STOCK FUNDS NOW ARE SUCH BIG PLAYERS IN THE MARKET THAT STOCKFUND SALES NO LONGER CAN BE DISMISSED AS SIMPLY ANOTHER GAUGE OF INVESTOR SENTIMENT THAT TRICKY PSYCHOLOGICAL READ ON THE MARKET IS NO LONGER REALLY VALID HE SAYS INSTEAD MR CRAIG VIEWS STOCK FUNDS IN A DIFFERENT LIGHT AS HE SEES IT THE CASH COMING INTO STOCK FUNDS IS A CRUCIAL SOURCE OF LIQUIDITY FOR THE STOCK MARKET THE STOCK MARKET IS A CREATURE OF LIQUIDITY HE SAYS AS LONG AS THE LIQUIDITY IS MAINTAINED OR INCREASED THE MARKET SHOULD BE FINE WE NEED THE FLOW OF FUNDS TO SOAK UP THE NEW ISSUES AND THE SECONDARY ISSUES THE PUBLIC'S HUGE ENTHUSIASM FOR STOCK FUNDS HAS BEEN ACCOMPANIED BY A SURGE IN PUBLIC STOCK OFFERINGS LAST YEAR STOCK MUTUAL FUNDS ATTRACTED A RECORD 778 BILLION FROM INVESTORS THAT MONEY HELPED ABSORB THE RASH OF NEW STOCK ISSUED BY CORPORATIONS BIRINYI ASSOCIATES A NEW YORK MARKET RESEARCH FIRM FIGURES THERE WAS NET STOCK ISSUANCE BY CORPORATIONS OF 331 BILLION IN 1992 THE BIRINYI NUMBERS INCLUDE INITIAL PUBLIC OFFERINGS AS WELL AS OFFERINGS OF ADDITIONAL STOCK BY PUBLICLY TRADED COMPANIES MINUS STOCK BUYBACKS BY CORPORATIONS THERE'S BEEN A SHIFT HERE WHERE ON BALANCE CORPORATIONS ARE SELLERS OF STOCK AND THE PUBLIC IS A BUYER SAYS MARTIN ZWEIG EDITOR OF THE ZWEIG FORECAST A NEW YORK NEWSLETTER SO THE QUESTION ARISES WHO'S SMARTER YOU MIGHT ARGUE THAT THE PUBLIC IS LESS SOPHISTICATED BUT IF INTEREST RATES STAY LOW IT'S VERY DIFFICULT TO SEE THE STOCK MARKET GETTING KILLED MR ZWEIG NOTES THAT STOCK MUTUAL FUNDS ARE JUST ONE SOURCE OF STOCK MARKET BUYING AND SELLING WHERE STOCK PRICES HEAD NEXT WILL ALSO DEPEND ON HOW MUCH NEW STOCK GETS ISSUED AND WHAT OTHER INVESTORS DO BUT TO THE EXTENT THAT THE STOCK MARKET'S FUTURE DEPENDS ON STOCK FUNDS THE OUTLOOK IS ROSY IN ADDITION TO THE BILLIONS OF DOLLARS ROLLING INTO MUTUAL FUNDS EVERY WEEK STOCK FUND MANAGERS ARE SITTING ON A CASH HOARD OF 447 BILLION UP FROM 426 BILLION IN DECEMBER STOCK FUNDS WHICH HAVE TOTAL ASSETS OF 4932 BILLION THUS ARE HOLDING CASH EQUAL TO 91 OF ASSETS UP FROM 9 IN DECEMBER HOW MUCH BUYING POWER DOES THAT REPRESENT BIRINYI ASSOCIATES CALCULATES THAT STOCK FUND CASH RESERVES ARE EQUAL IN VALUE TO 67 DAYS OF NEW YORK STOCK EXCHANGE TRADING IN HIS BESTSELLING BOOK ONE UP ON WALL STREET FUND MANAGER PETER LYNCH TALKS ABOUT HIS COCKTAIL PARTY THEORY WHEN EVERYBODY IS OFFERING STOCK MARKET ADVICE AT COCKTAIL PARTIES IT'S A SURE SIGN THAT WE'RE CLOSE TO A MARKET TOP BUT THESE DAYS WITH MUTUAL FUND INVESTORS NOW KEY PLAYERS IN THE STOCK MARKET SOME SAY MAYBE ALL THAT IDLE COCKTAIL PARTY CHATTER IS ACTUALLY A POSITIVE SIGN IN MY 20PLUS YEARS IN THE BUSINESS I HAVE NEVER HAD SO MANY CALLS FROM PEOPLE ASKING WHAT SHOULD I DO MY CERTIFICATES OF DEPOSIT ARE ONLY EARNING 25 TO 3' SAYS EDWARD MATHIAS A MANAGING DIRECTOR WITH BALTIMORE'S T ROWE PRICE ASSOCIATES AS LONG AS THE MONEY CONTINUES TO FLOW INTO MUTUAL FUNDS THAT WILL BE A VERY POSITIVE FORCE FOR THE MARKET BUT MR MATHIAS ALSO NOTES THAT THE STOCK MARKET'S RELIANCE ON SMALL INVESTORS COULD BACKFIRE THE REAL FEAR WOULD BE THAT A LOT OF THIS MONEY IS NOT PERMANENTLY EARMARKED FOR STOCKS HE SAYS IF YOU HAD A MARKET DOWNDRAFT AND A LOT OF INVESTORS YANKED MONEY OUT OF STOCK MUTUAL FUNDS THAT WOULD HAVE A DELETERIOUS EFFECT HE SAYS AT SOME POINT THE MOMENTUM HAS TO SLOW DOWN EVERY CD INVESTOR IS NOT GOING TO GO INTO MUTUAL FUNDS 9302260096 930226 PLDT AGREES TO LET COMPETITORS USE ITS NETWORK BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL MANILA PHILIPPINE LONG DISTANCE TELEPHONE CO AN INEFFICIENT MONOPOLY LONG THE TARGET OF GOVERNMENT DEREGULATION ATTEMPTS HAS AGREED TO LET COMPETING PHONE COMPANIES CONNECT WITH ITS NETWORK PHILIPPINE PRESIDENT FIDEL RAMOS THIS WEEK ANNOUNCED THAT PLDT HAS DECIDED TO ADHERE TO THE GOVERNMENT'S WISHES TO ACCELERATE DEVELOPMENT OF THE COUNTRY'S CREAKY TELECOMMUNICATIONS INDUSTRY IN A STATEMENT MR RAMOS COMMENDED PLDT PRESIDENT ANTONIO COJUANGCO JR FOR ADOPTING THE NEW POLICY OF OPENNESS AND LIBERALIZATION ACCORDING TO THE STATEMENT MR COJUANGCO TOLD MR RAMOS THAT HE HAS INSTRUCTED ALL PLDT PERSONNEL TO COOPERATE FULLY PLDT'S APPARENT ASSENT IS THE FIRST STEP IN A FULLSCALE DEREGULATION OF THE COUNTRY'S TELECOMMUNICATIONS SECTOR OFFICIALS AT PLDT WERE UNAVAILABLE TO CLARIFY DETAILS OF THE PLAN PLDT CONTROLS 94 OF ALL TELEPHONES INSTALLED NATIONWIDE BUT IT HAS RESISTED THE EFFORTS OF THE NATIONAL TELECOMMUNICATIONS COMMISSION TO INCREASE COMPETITION IN THE INDUSTRY WHILE THE NTC HAS HAD SOME SUCCESSES PARTICULARLY IN OPENING THE COUNTRY'S CELLULARPHONE MARKET PLDT HAS CONTINUED TO RESIST GOVERNMENT ORDERS TO INTERCONNECT WITH POTENTIAL COMPETITORS THE COMPANY'S QUALITY OF SERVICE IS NOTORIOUSLY POOR AND ITS COSTS PER LINE ARE HIGHER THAN WORLD AVERAGES ACCORDING TO THE GOVERNMENT PLDT HAS A BACKLOG OF NEARLY 800000 APPLICATIONS FOR PHONE LINES NATIONWIDE IN A RECENT INTERVIEW PLDT VICE PRESIDENT ANTONIO SAMSON SAID THE COMPANY'S COSTS ARE HIGH BECAUSE THE COUNTRY'S MANY ISLANDS REQUIRE HEAVY INVESTMENT IN INFRASTRUCTURE HE SAID TELECOMMUNICATIONS RIVALS WANT TO PLUG INTO PLDT'S EXTENSIVE NETWORK SIMPLY TO PIGGYBACK ON ITS INFRASTRUCTURE BUT MR RAMOS HAS CONTINUED EFFORTS BEGUN BY HIS PREDECESSOR CORAZON AQUINO TO END GOVERNMENT PROTECTION OF MONOPOLIES EARLIER THIS MONTH THE PRESIDENT CONFIRMED THAT HE WAS THINKING OF ISSUING AN EXECUTIVE ORDER FOR PLDT TO INTERCONNECT WITH COMPETITORS IN ADDITION CONGRESS ALSO IS CONSIDERING LEGISLATION THAT WOULD COMPEL INTERCONNECTION THE COJUANGCO FAMILY'S SEEMINGLY IRONCLAD CONTROL OF THE PUBLICLY TRADED COMPANY RAISES EYEBROWS FROM TIME TO TIME THE FAMILY CONTROLS THE PHONE COMPANY WITH ONLY A MINORITY EQUITY STAKE TELEPHONE SUBSCRIBERS THEMSELVES OWN 62 OF PLDT'S PREFERRED SHARES WHICH THEY ARE REQUIRED TO BUY TO OBTAIN SERVICE BUT FEW CONVERT THEIR SHARES INTO COMMON STOCK CRITICS HAVE SAID SUCH PASSIVE SHAREHOLDING BOOSTS THE COJUANGCOS' CONTROL 9302260095 930226 PERRY NOMINEE FOR NO 2 PENTAGON POST OUTLINES HIS APPROACH TO DEFENSE POLICY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S NOMINEE FOR THE NO 2 SLOT AT THE DEFENSE DEPARTMENT UNVEILED AN ACTIVIST APPROACH TO DEFENSE INDUSTRIAL POLICY AND PROMISED A RADICAL REFORM OF PROCUREMENT METHODS AT HIS CONFIRMATION HEARING BEFORE THE SENATE ARMED SERVICES COMMITTEE WILLIAM PERRY A STANFORD UNIVERSITY ENGINEERING PROFESSOR WHO SERVED AS THE PENTAGON'S ACQUISITION CZAR DURING THE CARTER YEARS EXPRESSED A KIND OF TOUGH LOVE APPROACH TO THE DEFENSE INDUSTRY THE NOMINEE FOR DEPUTY DEFENSE SECRETARY SHOWED SYMPATHY FOR BELEAGUERED DEFENSE CONTRACTORS YET HE SAID HE DIDN'T INTEND TO SUBSIDIZE THE FIRMS TO KEEP THEM ALIVE EITHER DIRECTLY BY GIVING THEM CONTRACTS OR INDIRECTLY BY ALLOWING THEM TO EXPORT HIGHTECHNOLOGY WEAPONS MR PERRY WHO IS LIKELY TO BE GIVEN A FREE HAND AS DEFENSE SECRETARY LES ASPIN FOCUSES ON POLICY AND POLITICS SAID HIS REFORM EFFORTS WOULD FOCUS ON LOWERING THREE MAJOR BARRIERS SEPARATING THE DEFENSE INDUSTRY FROM THE REST OF THE INDUSTRIAL SECTOR THOSE BARRIERS HE SAID ARE UNIQUE MILITARY SPECIFICATIONS FOR EQUIPMENT SECURITY RESTRICTIONS ON MILITARY PROGRAMS AND THE PECULIAR ACQUISITION PROCESS WE USE AS PART OF THIS NEW STRATEGY OF PIGGYBACKING DEFENSE ACQUISITION ON TOP OF THE COMMERCIAL SECTOR HE SAID HE IS ESPECIALLY INTERESTED IN SEEING SUCH DUALUSE PROGRAMS COME OUT OF FOUR MAIN INDUSTRIAL AREAS SEMICONDUCTORS COMPUTERS TELECOMMUNICATIONS AND ADVANCED MATERIALS ONLY A SMALL SEGMENT OF THE DEFENSE INDUSTRY THE PART THAT MAKES NUCLEAR SUBMARINES TANKS AND OTHER PRODUCTS THAT HAVE NO COMMERCIAL APPLICATION WOULD BE CONSIDERED FOR SOME FORM OF SUBSIDIZATION HE SAID BUT HE ALSO INDICATED THAT BEING CLASSIFED AS DEFENSE UNIQUE WOULD CARRY A HIGH PRICE MOST NOTABLY BY BEING SUBJECT TO RIGID EXPORT CONTROLS OVER THE NEXT SEVERAL MONTHS HE SAID HE WOULD LEAD A PENTAGON STUDY ON JUST HOW THE INDUSTRIAL CAPABILITIES OF THE DEFENSEUNIQUE SECTOR MIGHT BE MAINTAINED IN THE FUTURE WHEN THE US ALREADY HAS MORE SHIPS SUBMARINES AND MILITARY AIRCRAFT THAN IT NEEDS PRODDED BY THE COMMITTEE HE LISTED THREE DIFFERENT POSSIBLE APPROACHES TO THE EXAMPLE OF THE SUBMARINE INDUSTRY MAINTAINING A VERY LOW PRODUCTION RATE REGARDLESS OF NEED IDENTIFYING THE COMPONENTS OF SUBMARINE MANUFACTURE THAT ARE UNIQUE AND CONTINUING ONLY THOSE OR USING MANUFACTURING FACILITIES TO UPGRADE AND MAINTAIN EXISTING SUBMARINES IN OTHER TESTIMONY MR PERRY WHOSE SWIFT CONFIRMATION SEEMS ASSURED ESPECIALLY WITH DEFENSE SECRETARY ASPIN BEING SIDELINED BY HEART TROUBLE MOST OF THIS WEEK DELIVERED A RINGING ENDORSEMENT OF THE PART OF THE STAR WARS PROGRAM THAT DEALS WITH DEFENDING AGAINST MISSILE ATTACK IN A REGIONAL AREA AS WITH IRAQ'S SCUD ATTACKS DURING THE GULF WAR I BELIEVE THAT WE HAVE A STRONG EVEN A COMPELLING REQUIREMENT TO DEVELOP PRODUCE AND DEPLOY A THEATER ABM SYSTEM HE SAID LAST FALL A TEAM OF DEFENSE CONTRACTORS LED BY LOCKHEED CORP WON A PENTAGON CONTRACT TO PROCEED WITH THE FIRST DEPLOYMENT PHASE OF THE THEATER HIGHALTITUDE AREA DEFENSE MISSILE MR PERRY WHO WAS INTRODUCED BY ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN AS THE FATHER OF STEALTH TECHNOLOGY A REFERENCE TO HIS PAST EFFORTS TO DEVELOP THE F117 STEALTH FIGHTER ALSO ENDORSED LOCKHEED'S MULTIBILLIONDOLLAR MILSTAR SATELLITE SYSTEM WHICH THE AIR FORCE RECENTLY TRIED TO CANCEL I STRONGLY SUPPORT THE CONCEPT OF MILSTAR AND WOULD EXPECT TO FIND STRONG REASON TO CONTINUE THAT PROGRAM HE SAID MR PERRY ALSO PRAISED AS REVOLUTIONARY BOEING CO'S PAPERLESS APPROACH TO BUILDING THE NEW BOEING 777 WHICH HE SAID COULD SHARPLY REDUCE THE TIME AND COSTS OF PRODUCTION RATHER THAN USING MOCKUPS BOEING IS DESIGNING THE AIRCRAFT ON COMPUTERS AND TRYING TO DEBUG IT BEFORE BUILDING IT IF BOEING SUCCEEDS MR PERRY SAID HE WILL ENCOURAGE DEFENSE COMPANIES TO FOLLOW SUIT 9302260094 930226 UNIT OF TELEDYNE IS FOUND LIABLE IN PLANE CRASH BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL COURT JURY IN ROCHESTER NY FOUND AN ENGINEMAKING UNIT OF TELEDYNE INC LIABLE FOR 107 MILLION IN DAMAGES STEMMING FROM A FAMILY'S DEATH IN A 1986 PLANE CRASH ALTHOUGH THE AMOUNT MAY BE SUBSTANTIALLY REDUCED ON APPEAL LEGAL EXPERTS SAID ARTHUR ALAN WOLK A PHILADELPHIA PLAINTIFFS' ATTORNEY REPRESENTING THE FAMILY OF ROBERT GROSS PILOT OF THE SMALL BEECHCRAFT DEBONAIR SAID THE JURY FOUND TELEDYNE CONTINENTAL MOTORS NEGLIGENT AND RESPONSIBLE FOR A FIRE THAT ERUPTED WHEN AVIATION FUEL LEAKED FROM THE AIRCRAFT ENGINE ONTO THE PLANE'S EXHAUST PIPES THE FIRE SPREAD INTO THE PASSENGER CABIN AND KILLED MR GROSS AND THREE PASSENGERS THE JURY AWARD ALL IN COMPENSATORY DAMAGES IS BELIEVED TO BE ONE OF THE LARGEST IN AVIATION HISTORY BUT NEW YORK LAWYERS FAMILIAR WITH THE PRACTICES OF APPEALS COURTS IN THE STATE SAID THE AWARD WOULD LIKELY BE CUT THE CHANCES ARE THAT THE COURT WILL DRAMATICALLY REDUCE THIS VERDICT SAID PAM LIAPAKIS SENIOR PARTNER AT SULLIVAN & LIAPAKIS A LAW FIRM SPECIALIZING IN PERSONALINJURY LAW A SPOKESMAN FOR LOS ANGELESBASED TELEDYNE SAID THE JURY VERDICT AND AWARD WAS TOTALLY UNEXPECTED AND NOT JUSTIFIED BY THE FACTS IN THE CASE ADDING THAT WE INTEND TO FILE POSTTRIAL MOTIONS SHORTLY ACCORDING TO WIRE SERVICE REPORTS OF THE VERDICT TELEDYNE'S COUNSEL ARGUED THAT THE ACCIDENT HAD BEEN CAUSED BY THE PILOT MR GROSS THE COMPANY CITED A REPORT BY THE NATIONAL TRANSPORTATION SAFETY BOARD WHICH SAID THE PROBABLE CAUSE OF THE ACCIDENT WAS AN INADEQUATELY PLANNED APPROACH BY THE PILOT TELEDYNE SAID YESTERDAY THAT THE NTSB REPORT WHICH CONCLUDED THAT THE ACCIDENT WASN'T CAUSED BY ENGINE FAILURE WASN'T ADMISSIBLE AS EVIDENCE AT THE TRIAL MR WOLK HOWEVER SAID TELEDYNE WAS WELL AWARE OF THE PROBLEMS WITH MR GROSS'S ENGINE FROM CONTINUING WRITTEN COMMUNICATIONS BEFORE THE CRASH MR GROSS'S WIFE SUSAN AND HIS YOUNG SONS MICHAEL AND DAVID WERE ALSO KILLED IN THE NOV 26 1986 CRASH AT SMITH REYNOLDS AIRPORT IN WINSTONSALEM NC THE AWARD WAS FOUND FOR MR GROSS'S SISTER AND MRS GROSS'S MOTHER 9302260093 930226 BUSINESS BRIEF CHRYSLER CORP OUTPUT OF VEHICLES POWERED BY NATURAL GAS TO EXPAND CHRYSLER CORP HIGHLAND PARK MICH SAID IT IS EXPANDING ITS PRODUCTION OF NATURALGASPOWERED VEHICLES TO INCLUDE MINIVANS WHICH WILL BE ON THE MARKET BY JANUARY CHRYSLER SAID IT ALREADY SOLD 1000 NATURALGASPOWERED DODGE RAM VANS PRICED AT ABOUT 21500 OR 4500 MORE THAN STANDARD VANS CHRYSLER DIDN'T DISCLOSE PRICING DETAILS FOR THE NATURALGAS POWERED MINIVANS GENERAL MOTORS CORP AND FORD MOTOR CO ALSO HAVE NATURALGASPOWERED VEHICLE PROGRAMS UNDER WAY ABOUT 30000 NATURALGAS VEHICLES HAVE BEEN BUILT MOSTLY CONVERTED VEHICLES PRIMARILY USED BY UTILITIES OR THE POSTAL SERVICE ACCORDING TO THE GAS RESEARCH INSTITUTE 9302260092 930226 LAW LEGAL BEAT ONLINE DATABASE NETWORK LINKS LAW FIRMS AND CORPORATE COUNSEL BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATIONS WILL SOON HAVE A NEW WEAPON TO FORCE THEIR LAWYERS TO CHARGE LESS MONEY AN INNOVATIVE ONLINE NETWORK BETWEEN TOP LAW FIRMS AND CORPORATE LAW DEPARTMENTS MAY SLASH THE AMOUNT OF TIME THAT LAW FIRMS SPEND ON AND BILL FOR LEGAL RESEARCH THE NETWORK CONSISTS MAINLY OF A DATABASE AND ELECTRONICMAIL HOOKUP AND WILL BE RUN BY COUNSEL CONNECT INC A SUBSIDIARY OF AMERICAN LAWYER MEDIA NEW YORK THE ELECTRONICMAIL PART OF THE NETWORK IS SCHEDULED TO BE OPERATING APRIL 1 IN SOME CASES THE NETWORK MAY SAVE CORPORATIONS FROM EVEN RETAINING OUTSIDE LAWYERS SAID STEVEN BRILL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN LAWYER MEDIA A PARTNERSHIP OWNED BY MR BRILL AND TIME WARNER INC COMPANIES WILL BE ABLE TO SIMPLY TAKE INFORMATION THEY NEED FROM THE DATABASE WHICH WILL INCLUDE LAWFIRM NEWSLETTERS ABOUT LEGAL DEVELOPMENTS BRIEFS AND SAMPLES OF AGREEMENTS THESE MATERIALS WILL COME MAINLY FROM PARTICIPATING LAW FIRMS WHO WILL HAVE BEEN SCREENED BY COUNSEL CONNECT IN OTHER INSTANCES A CORPORATION MIGHT NEED MORE INFORMATION FOR A TRANSACTION OR LITIGATION AND DECIDE TO RETAIN WHICHEVER LAW FIRM HAD THE MOST IMPRESSIVE DATABASE MATERIAL ON THE TOPIC OR OUTSIDE COUNSEL MIGHT USE ELECTRONIC MAIL TO QUERY TEN OTHER LAW FIRMS ABOUT A TOPIC THEN ELECTRONICALLY SHIP THE ANSWER BACK TO A WAITING CLIENT RESEARCH COSTS HAVE LONG BEEN A GRIPE OF GENERAL COUNSEL WHO ARE PARTICULARLY FRUSTRATED ABOUT PAYING FOR YOUNG LAWYERS TO STUDY UP ON LEGAL TOPICS THAT HAVE BEEN RESEARCHED MANY TIMES BEFORE BY OTHER LAWYERS THE CHANGE IN BALANCE OF POWER FROM OUTSIDE COUNSEL TO INHOUSE COUNSEL COMBINED WITH THE TECHNOLOGICAL REVOLUTION IS GOING TO MAKE IT IMPOSSIBLE FOR LAW FIRMS TO CHARGE FOR HOW LONG SOMETHING TAKES OR FOR REINVENTING THE WHEEL MR BRILL SAID COMPANIES THAT HAVE SIGNED UP INCLUDE CHRYSLER CORP HIGHLAND PARK MICH GENERAL ELECTRIC CO FAIRFIELD CONN AND CHIQUITA BRANDS INTERNATIONAL A UNIT OF AMERICAN FINANCIAL CORP CINCINNATI SO HAVE ABOUT 40 LAW FIRMS INCLUDING THE NEW YORK LAW FIRM WACHTELL LIPTON ROSEN & KATZ THE WASHINGTON LAW FIRM HOGAN & HARTSON AND THE SAN FRANCISCO LAW FIRM BROBECK PHLEGER & HARRISON THE CLEAR WINNER IN THIS KIND OF SERVICE IS GOING TO BE CORPORATE COUNSEL SAID JON KLEMENS A PRINCIPAL IN THE INFORMATIONSERVICES GROUP OF ALTMAN WEIL PENSA INC A LAWFIRM CONSULTING COMPANY IN NEWTOWN SQUARE PA IT'S LIKE AN ELECTRONIC SHOPPING MALL WHAT'S THE INCENTIVE FOR A LAW FIRM TO MAKE RESEARCH AVAILABLE PRACTICALLY FOR FREE LOTS OF CORPORATIONS ARE EXPECTED TO SIGN ON AND LAW FIRMS WANT TO KEEP THEIR CLIENTS HAPPY BY PLYING THEM WITH INFORMATION THEY NEED SAID WILLIAM REYNER A PARTNER AT 355ATTORNEY HOGAN & HARTSON BESIDES THE NETWORK SHOULD HAVE MARKETING BENEFITS SAID MR REYNER THE THEORY IS THAT YOU'RE ONLINE WITH KNOWLEDGE AND THAT INHOUSE COUNSEL WOULD FOLLOW THE KNOWLEDGE CHAIN TO THE PERSON WHO WROTE THE MEMO HE SAID WHO KNOWS YOU'VE GOT TO SEE WHAT THE MARKET WILL DO BUT WE THOUGHT WE'D TRY IT LAW FIRMS ALSO WILL GET SOME ROYALTIES WHENEVER OTHER PEOPLE USE THEIR DATABASE MATERIALS IN ADDITION FIRMS MAY BE ABLE TO CHARGE FOR ACCESS TO SPECIFIC DOCUMENTS AND SPLIT THE REVENUE WITH COUNSEL CONNECT MR BRILL WOULDN'T DISCUSS HOW PROFITABLE HE EXPECTS COUNSEL CONNECT TO BE BUT HE SAID IT MIGHT BREAK EVEN IN THE FIRST YEAR GETTING ONLINE WILL COST CORPORATIONS 200 A MONTH AND LAW FIRMS 975 A MONTH PLUS A SMALL PERMINUTE FEE FOR TIME SPENT ON THE COMPUTER SYSTEM JOHN W LARSON CHAIRMAN OF 400ATTORNEY BROBECK PHLEGER SAID SUCH A LEGAL NETWORK WAS ALMOST INEVITABLE YOU CAN'T STOP TECHNOLOGY HE SAID BUT NOT ALL CORPORATE LAWYERS WERE IMMEDIATELY ENTHUSIASTIC IT'S A FUNCTION OF AGE SAID LAWRENCE R RICCIARDI EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL FOR RJR NABISCO INC THE MORE GRAY HAIR YOU HAVE THE LESS YOU'LL USE IT I STILL USE A ROTARY PHONE MYSELF A FEDERAL JURY AWARDED A FORMER EMPLOYEE OF RUSS BERRIE & CO 55 MILLION IN THE FIRST PHASE OF A SLANDER AND WRONGFUL DISCHARGE CASE THE CHICAGO JURY THIS WEEK FOUND THAT RUSS BERRIE AN IMPULSE GIFT COMPANY IN OAKLAND NJ HAD MALICIOUSLY SLANDERED JEAN RANSDELL IN 1986 WHEN COMPANY OFFICIALS IN CHICAGO TOLD OTHER EMPLOYEES THAT SHE HAD BEEN FIRED BECAUSE SHE HAD PADDED SALES ORDERS JUDGE JOHN A NORDBERG IS HEARING THE WRONGFUL DISCHARGE PHASE OF THE TRIAL THIS WEEK MS RANSDELL ALLEGES SHE WAS FIRED BECAUSE SHE TOOK MATERNITY LEAVE FIRING SOMEONE FOR TAKING MATERNITY LEAVE IS A VIOLATION OF TITLE VII OF THE FEDERAL 1964 CIVIL RIGHTS ACT EMPLOYEE LAW ATTORNEY DEBORAH NEUBERT A PARTNER WITH THE NEW HAVEN CONN LAW FIRM UPDIKE KELLY & SPELLACY WHICH WAS NOT INVOLVED IN THE LITIGATION SAID THE CASE IS INDICATIVE OF A TREND THAT STARTED IN THE 1980S AN INCREASE IN WRONGFUL DISCHARGE CASES THAT ALSO ALLEGE THAT EMPLOYERS HAVE SPREAD LIES OR MISSTATEMENTS ABOUT WHY AN EMPLOYEE WAS DISMISSED HOWEVER WILLIAM J ARENDT A PARTNER WITH KANTER & MATTENSON IN CHICAGO WHICH REPRESENTED THE PLAINTIFF SAID HE HAS RECENTLY NOTICED A REDUCTION IN THE NUMBER OF COMBINATION SLANDER AND WRONGFUL DISCHARGE CASES FILED BECAUSE THEY ARE DIFFICULT TO WIN THE SIZE OF THE JUDGMENT 2 MILLION IN COMPENSATORY DAMAGES AND 35 MILLION IN PUNITIVE DAMAGES ALSO IS NOTABLE ACCORDING TO AN OCTOBER 1992 REPORT ON LIBEL AND SLANDER CASES PUBLISHED IN THE JURY VERDICT RESEARCH SERIES THE AVERAGE AWARD WAS 136408 MR ARENDT SAID THE 2 MILLION IN DAMAGES IS LARGE BUT THE 35 MILLION IN PUNITIVE DAMAGES MEANT TO DETER FUTURE WRONGDOING IS NOT BECAUSE JURIES CUSTOMARILY AWARD SUCH DAMAGES BASED ON A PERCENTAGE OF A COMPANY'S NET WORTH CURTS COOKE PRESIDENT OF RUSS BERRIE SAID THE CLAIMS ARE WITHOUT MERIT AND THE COMPANY WILL VIGOROUSLY PURSUE ALL AVENUES OF APPEAL ARTHUR ANDERSEN THE THIRD BIGGEST INTERNATIONAL ACCOUNTING FIRM HAS AFFILIATED WITH A LONDON LAW FIRM IT IS THE FIRST OF THE SIX MAJOR ACCOUNTING FIRMS TO ENTER INTO SUCH AN ARRANGEMENT WITH A BRITISH LAW FIRM SAID LISA GANDY WARGO EDITOR OF THE INTERNATIONAL LAWYER NEWSLETTER WHICH FIRST DISCLOSED THE MOVE ROY J CHAPMAN ANDERSEN'S UK MANAGING PARTNER SAID THAT THE LAW FIRM GARRETT & CO IS HEADED BY COLIN GARRETT AND WILL BEGIN OPERATING IN A FEW MONTHS MR GARRETT FORMERLY WAS COUNSEL FOR 3I PLC AN INVESTMENT FIRM OWNED BY MAJOR BRITISH BANKS ONE AIM IS FOR WORK TO BE EXCHANGED BETWEEN ANDERSEN'S PRACTICE AND GARRETT'S SO THAT WE REFER LEGAL WORK TO THEM AND THEY ACCOUNTING WORK TO US MR CHAPMAN SAID HE SAID THAT GARRETT WOULD BECOME PART OF ANDERSEN'S NETWORK OF LAW PRACTICES THROUGHOUT EUROPE IN FRANCE ANDERSEN WORKS WITH LAW FIRM SG ARCHIBALD AND IN GERMANY WITH LAW FIRM FREIHALTER KRUGER & PARTNERS WHILE ATTORNEYS AND ACCOUNTANTS CAN'T WORK TOGETHER IN A MULTIDISCIPLINARY PRACTICE IN THE US BECAUSE OF ETHICAL CONSTRAINTS SUCH ARRANGEMENTS ARE ACCEPTED IN EUROPE MAJOR ACCOUNTING FIRMS HAVE LONG HAD LINKS WITH LAW FIRMS IN EUROPE PARTICULARLY IN FRANCE WHERE TAX PREPARATION IS DONE MAINLY BY ATTORNEYS ETHICAL RULES IN ENGLAND PROHIBIT SOLICITORS FROM ENTERING INTO PARTNERSHIP WITH OTHER PROFESSIONALS WHICH THEY CAN DO IN SOME EUROPEAN COUNTRIES BUT THEY CAN AFFILIATE WITH OTHER PROFESSIONAL FIRMS IN ENGLAND IF WORK IS REFERRED RATHER THAN SHARED ACCORDING TO THE NEWSLETTER MR CHAPMAN SAID THAT THE BRITISH GOVERNMENT IS SUPPORTING THE IDEA OF A MULTIDISCIPLINARY PRACTICE AND BRINGING PRESSURE TO BEAR ON THE BRITISH LEGAL PROFESSION WHICH OPPOSES IT ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9302260091 930226 BUSINESS BRIEF LIBERTY MEDIA CORP BOARD APPROVES 2FOR1 SPLIT OF CLASS A AND CLASS B SHARES LIBERTY MEDIA CORP SAID ITS BOARD APPROVED A 2FOR1 SPLIT OF ITS CLASS A AND CLASS B COMMON STOCK THE THIRD SPLIT SINCE THE COMPANY WAS SPUN OFF FROM TELECOMMUNICATIONS INC IN 1991 UNDER THE SPLIT THE COMPANY IN CHEYENNE WYO WILL ISSUE ONE CLASS A SHARE FOR EACH CLASS A COMMON SHARE OUTSTANDING AND ONE CLASS B SHARE FOR EACH CLASS B COMMON SHARE OUTSTANDING THE COMPANY CURRENTLY HAS 442 MILLION CLASS A COMMON SHARES AND 217 MILLION CLASS B COMMON SHARES OUTSTANDING AFTER THE SPLIT THE COMPANY WOULD HAVE 884 MILLION CLASS A SHARES AND 433 MILLION CLASS B SHARES OUTSTANDING LIBERTY'S MERGER PROPOSAL TO ACQUIRE ALL OF THE COMMON STOCK OF HOME SHOPPING NETWORK INC NOT ALREADY OWNED BY LIBERTY WOULD BE ADJUSTED AS A RESULT OF THE STOCK SPLIT SO THAT HOLDERS OF HSN COMMON STOCK WOULD RECEIVE 550 CASH AND 02 SHARE OF LIBERTY CLASS A COMMON STOCK 9302260090 930226 BUSINESS BRIEF CONNER PERIPHERALS INC FIRSTPERIOD NET IS EXPECTED TO TRAIL ANALYSTS' ESTIMATES CONNER PERIPHERALS INC CITING FALLING DEMAND FOR ITS LOWEREND PRODUCTS SAID IT EXPECTS FIRSTQUARTER NET INCOME TO TRAIL ANALYSTS' ESTIMATES OF 48 CENTS TO 73 CENTS A SHARE FOR THE QUARTER CONNER SAID EARNINGS WILL BE HIGHER THAN THE NET INCOME OF 247 MILLION OR 40 CENTS A SHARE POSTED A YEAR AGO BUT LOWER THAN THE NET OF 442 MILLION OR 70 CENTS A SHARE OF THE FOURTH QUARTER OF 1992 BEFORE ACCOUNTING FOR A CHARGE RELATED TO AN ACQUISITION THE SAN JOSE CALIF DISKDRIVE MAKER MADE ITS ANNOUNCEMENT AFTER THE MARKET CLOSED ANALYSTS SAID CONNER'S STOCK PRICE MAY DROP A BIT IN TRADING TODAY 9302260089 930226 BUSINESS BRIEF MAGNETEK INC THREE PARTNERSHIPS TO SELL 29 TOTAL OF COMPANY STOCK MAGNETEK INC SAID THREE PARTNERSHIPS THAT TOGETHER HOLD ABOUT 29 OF ITS SHARES PLAN TO SELL THEIR STAKES IN A SECONDARY OFFERING THE LOS ANGELES ELECTRICALEQUIPMENT MAKER SAID THAT ON BEHALF OF THE PARTNERSHIPS IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF SEVEN MILLION COMMON SHARES THE COMPANY WON'T RECEIVE ANY OF THE PROCEEDS MAGNETEK SHARES FELL 625 CENTS TO 22625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MAGNETEK HAD DISCLOSED LAST MONTH THAT THE PARTNERSHIPS HAD REQUESTED REGISTRATION OF THE STOCK MAGTEK PARTNERS GRANTED UNDERWRITERS AN OPTION TO PURCHASE UP TO 486649 ADDITIONAL SHARES TO COVER OVERALLOTMENTS CHAMPLAIN ASSOCIATES AND WINSTON CAPITAL PARTNERS ARE THE OTHER PARTNERSHIPS 9302260087 930226 POLITICS & POLICY RELIEF AIRLIFTS FOR BOSNIA POSE RISKS FOR US BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S DECISION TO HAVE THE US AIR DROP RELIEF SHIPMENTS TO BOSNIA COULD BE FURTHER PROOF OF JUST HOW HARD IT IS TO DO ANYTHING RIGHT IN THAT BELEAGUERED COUNTRY THE PRESIDENT SAID IN A STATEMENT THAT THE AIR DROPS WOULD BE TEMPORARY AND CARRIED OUT STRICTLY FOR HUMANITARIAN PURPOSES AND IN A CLEAR BID TO HEAD OFF SERBIAN RETALIATION HE SAID NO COMBAT AIRCRAFT WOULD ESCORT THE UNARMED C130 TRANSPORT PLANES AND THAT AID WOULD BE DELIVERED TO ANY COMMUNITY IN NEED REGARDLESS OF ETHNIC OR RELIGIOUS AFFILIATION THE STATEMENT MADE PARTICULAR MENTION OF THE DRASTIC CONDITIONS IN EASTERN BOSNIA WHERE THOUSANDS OF MUSLIMS HAVE BEEN BLOCKADED BY SERBIAN FORCES FOR MONTHS PENTAGON OFFICIALS SAID C130'S OPERATING FROM RHEINMAIN AIR BASE IN GERMANY WILL FLY IN WAVES OF THREE TO FIVE PLANES EACH OFFICIALS REFUSED HOWEVER TO SAY WHEN THE OPERATION WOULD BEGIN OR AT WHAT HEIGHT THE AID PALLETS WILL BE DROPPED ONE OFFICIAL DID INDICATE THAT THE FLIGHTS MIGHT TAKE PLACE AT NIGHT AS AN ADDED PRECAUTION TO PREVENT PLANES FROM BEING SHOT DOWN THE AIRCRAFT CARRIER USS KENNEDY AND A FOURSHIP MARINE AMPHIBIOUS FORCE IS IN THE ADRIATIC TO PROVIDE SEARCH AND RESCUE OPERATIONS WHILE NOT FLYING WINGTIP ESCORT MISSIONS FIGHTER AND AIR SURVEILLANCE PLANES FROM THE KENNEDY WILL UNDOUBTEDLY MONITOR THE RELIEF FLIGHTS FROM A DISTANCE AT BEST THE AIR DROPS WILL TEMPORARILY RELIEVE SOME OF THE SUFFERING AND HARDSHIP IN BOSNIA AT WORST IT COULD DRAW THE US MORE DEEPLY INTO THE MILITARY CONFLICT THE MISSION ISN'T LIKELY TO BRING AN END TO THE CIVIL WAR AND BY TAKING THE LEAD IN BOSNIA THE CLINTON ADMINISTRATION COULD FIND ITSELF UNDER EVEN GREATER PRESSURE TO BROKER AND GUARANTEE A PEACE SETTLEMENT I DON'T THINK THEY INTEND TO GET MORE INVOLVED SAID PATRICK GLYNN OF THE AMERICAN ENTERPRISE INSTITUTE A WASHINGTON THINK TANK BUT THIS COULD BE A FIRST STEP TO GUARANTEE THE SAFETY OF PILOTS FLYING THE SLOWMOVING C130S THE SHIPMENTS WILL LIKELY BE DROPPED FROM SUCH GREAT HEIGHTS THAT ACCURACY WILL BE IMPOSSIBLE THE 2000 POUND PALLETS OF READYTOEAT MEALS MEDICINE AND BLANKETS COULD CAUSE INJURY OR DAMAGE WHEN THEY HIT THE GROUND BUT THE PENTAGON SAID THAT THEY WILL FIRST DROP LEAFLETS WARNING RESIDENTS OF THE DANGERS AND THERE IS STILL RISK EVEN AT HIGH ALTITUDES THAT A PLANE COULD BE SHOT DOWN THE US WOULD THEN HAVE TO DECIDE QUICKLY WHETHER TO RETALIATE THAT IS EXACTLY THE DECISION THE PENTAGON BRASS DOESN'T WANT TO MAKE AND WHY THEY WARNED AGAINST GETTING INVOLVED IN A BALKAN QUAGMIRE SEN JOHN WARNER A MEMBER OF THE ARMED SERVICES COMMITTEE AND FORMER NAVY SECRETARY REJECTED THE PRESIDENT'S CLAIMS THAT THE AIR DROPS WOULDN'T LEAD TO A DEEPER INVOLVEMENT ANYTIME YOU FLY A MILITARY AIRCRAFT INTO A HOSTILE ZONE NO MATTER WHAT THE CARGO MIGHT BE IT HAS A MILITARY IMPLICATION THE VIRGINIA REPUBLICAN SAID AMERICAN OFFICIALS CONCEDE THAT THE MISSION ISN'T WITHOUT RISK BUT WITH THAT SORT OF LOGIC WE'D NEVER DO ANYTHING ANYWHERE SAID A SENIOR ADMINISTRATION OFFICIAL AND WITH THE PENTAGON AND THE EUROPEAN ALLIES RESISTING ANY MILITARY ACTION AIDES CONTEND THE ALTERNATIVE WAS TO DO NOTHING AT ALL AND WHILE THE MATERIAL GAIN FROM THE AIR DROPS MAY BE MODEST THE REAL VALUE CLINTON AIDES ARGUE WILL BE SYMBOLIC AT THE LEAST THE HOPE IS THAT THE BOSNIAN SERBS WILL BE PERSUADED OF THE FUTILITY OF THEIR TACTICS AND ALLOW THE FAR MORE EFFECTIVE LAND CONVOYS THROUGH MORE IMPORTANT ACCORDING TO OFFICIALS IT WILL BE THE FIRST TIME THE SERBS' EXPANSIONIST DESIGNS HAVE BEEN CHALLENGED THAT ALONG WITH TIGHTENED SANCTIONS COULD PERSUADE THEM TO RETURN TO PEACE NEGOTIATIONS IN GOOD FAITH US OFFICIALS ARE ALSO HOPING THE AIR DROP WILL BRING BOSNIAN MUSLIMS BACK TO THE TABLE THE RELIEF EFFORT THEY CONTEND SHOULD CONVINCE THE BOSNIANS THAT THEY ARE NO LONGER WITHOUT RESOURCES IN THE NEGOTIATIONS THE AIR DROPS COULD HOWEVER HAVE THE OPPOSITE EFFECT OF CONVINCING THE MUSLIMS TO HOLD OUT FOR A BETTER DEAL OR AN EVEN GREATER US MILITARY INVOLVEMENT WHILE APPLAUDING THE CLINTON ADMINISTRATION'S HUMANITARIAN IMPULSES MR GLYNN THE AMERICAN ENTERPRISE INSTITUTE ANALYST WARNS THAT NEITHER THE AIR DROPS NOR THE NEGOTIATIONS WILL END THE CIVIL WAR THE CURRENT PEACE PLAN IS SIMPLY UNACCEPTABLE TO THE BOSNIANS SINCE IT WOULD REQUIRE DISSOLVING THEIR GOVERNMENT AND PARTITIONING THEIR COUNTRY AND THERE'S NOTHING IN IT TO FORCE THE SERBS TO GIVE UP ANYTHING THE CLINTON ADMINISTRATION HAD BEEN HOPING TO PERSUADE OTHER COUNTRIES INCLUDING RUSSIA TO JOIN IN THE AIR DROPS SO FAR THEY HAVE HAD NO LUCK AND BY TAKING THE LEAD ON THIS MISSION THE US MAY FIND ITSELF SADDLED WITH EVEN MORE RESPONSIBILITY IN BOSNIA JOHN J FIALKA CONTRIBUTED TO THIS ARTICLE 9302260086 930226 TECHNOLOGY & MEDICINE STUDY CITES HIGH PROFITS FOR DRUG MAKERS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PHARMACEUTICAL COMPANY PROFITS EXCEED THOSE IN MOST OTHER INDUSTRIES ACCORDING TO A CONGRESSIONAL STUDY THAT IS LIKELY TO INCREASE PRESSURE FOR TIGHTER REGULATION OF THE DRUG BUSINESS THE OFFICE OF TECHNOLOGY ASSESSMENT SAID PHARMACEUTICAL COMPANIES EARN ABOUT 36 MILLION ABOVE COSTS FOR EACH NEW DRUG EVEN ADJUSTING FOR VARIATIONS IN RISK THE OFFICE SAID PROFIT MARGINS IN THE PHARMACEUTICAL INDUSTRY RUN TWO TO THREE PERCENTAGE POINTS HIGHER THAN THOSE IN OTHER INDUSTRIES THE FINANCIAL REWARDS FROM RESEARCH AND DEVELOPMENT HAVE MORE THAN OFFSET ITS COSTS AND RISKS SAID THE OFFICE IN A 350PAGE REPORT SUMMARIZING ITS FOURYEAR STUDY BUT IT ADDED MARKET FORCES HAVE FAILED TO LOWER THE PRICES CONSUMERS PAY FOR PRESCRIPTION DRUGS WHICH TEND TO RISE EVEN AFTER DRUGS LOSE PATENT PROTECTION THE REPORT IS SURE TO INCREASE PRESSURE ON CONGRESS AND THE CLINTON ADMINISTRATION TO REIN IN DRUG PRICES AS PART OF A HEALTHCARE REFORM PACKAGE EXPECTED THIS YEAR PRESIDENT CLINTON HAS SHOWN THAT HE IS RECEPTIVE TO THE IDEA HE RECENTLY LAMBASTED DRUG COMPANIES FOR CHARGING UNCONSCIONABLE PRICES FOR VACCINES THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION'S EXECUTIVE VICE PRESIDENT BOB ALLNUTT CALLED THE STUDY'S CONCLUSIONS ERRONEOUS AND DISPUTED THE METHOD USED TO APPRAISE PROFITS BUT REP HENRY WAXMAN D CALIF THE HEAD OF THE HOUSE HEALTH SUBCOMMITTEE WHO REQUESTED THE STUDY SAID THERE IS ROOM TO REDUCE PROFITS ADVERTISING COSTS AND UNIMPORTANT RESEARCH WHILE LEAVING RESEARCH ON BREAKTHROUGH DRUGS INTACT AND LEAVING THE INDUSTRY A GENEROUS PROFIT ONE REASON PRICES ARE HIGH IS THAT MOST AMERICANS HAVE OUTPATIENT PRESCRIPTION DRUG COVERAGE AS A RESULT SAID DR MICHAEL GLUCK SENIOR ANALYST AT THE OTA PATIENTS AND DOCTORS PAY LESS ATTENTION TO PRICE OFTEN USING WELLADVERTISED BRANDS WHEN LESS EXPENSIVE GENERIC DRUGS WOULD WORK AS WELL ACCORDING TO THE REPORT THE DRUG INDUSTRY INVESTS 58 OF ITS 8 BILLION ANNUAL RESEARCH BUDGET ON IMITATION OR METOO DRUGS THAT PROMISE NO NEW THERAPEUTIC GAIN THE STUDY ALSO FOUND THAT DRUG MAKERS POUR 10 BILLION A YEAR INTO ADVERTISING AND PROMOTION MORE THAN THEY SPEND ON RESEARCH AND DEVELOPMENT MR ALLNUTT INSISTED THAT METOO DRUGS DO GIVE CONSUMERS SOME VALUE CITING AS AN EXAMPLE A PRODUCT THAT LETS PATIENTS TAKE MEDICATION IN FEWER DOSES HE ACKNOWLEDGED THAT DRUG MAKERS SPEND MORE MONEY ON MARKETING THAN ON RESEARCH AND DEVELOPMENT BUT HE SAID THAT'S NECESSARY WE'RE NOT SELLING BEER OR POTATO CHIPS BUT COMPLEX POSSIBLY TOXIC PRODUCTS THE DRUG INDUSTRY SPOKESMAN SAID PRICES ROSE 51 LAST YEAR THE SMALLEST INCREASE IN 15 YEARS BUT THAT STILL OUTPACED THE 33 RISE IN CONSUMER PRICES 9302260085 930226 MARKETING & MEDIA FOX NBC PLAN TO LAUNCH NETWORKS IN LATIN AMERICA NEW YORK TWO NATIONAL BROADCAST NETWORKS NEWS CORP'S FOX AND GENERAL ELECTRIC CO'S NBC SEPARATELY ANNOUNCED PLANS TO LAUNCH CABLE NETWORKS IN LATIN AMERICA FOX INTERNATIONAL A UNIT OF FOX INC SAID IT WOULD LAUNCH A GENERAL ENTERTAINMENT NETWORK BY JULY 1 WITH PROGRAMMING IN ENGLISH SPANISH AND PORTUGUESE FROM THE FOX LIBRARY FROM MEXICO TO ARGENTINA THE NETWORK WOULD AIR SUCH MOVIES AS DIE HARD AND HOME ALONE AS WELL AS RERUNS OF TV SHOWS DYNASTY AND MASH ON A 24HOUR CABLE NETWORK A LOT OF PEOPLE ARE COMING OVER TO THIS MARKET NOW BECAUSE THERE IS A MORE STABLE ECONOMIC AND POLITICAL ENVIRONMENT THERE THAN EVER BEFORE SAID RAFAEL PASTOR EXECUTIVE VICE PRESIDENT OF FOX INTERNATIONAL IT HAS TREMENDOUS POTENTIAL FOR SUBSCRIBER GROWTH NBC SAID IT WOULD LAUNCH ITS SPANISHLANGUAGE 24HOUR NEWS SERVICE ORIGINATING IN CHARLOTTE NC BY MARCH 15 THE NETWORK SAID IT WOULD RELY ON EXISTING BUREAUS AND STRINGERS THROUGHOUT LATIN AMERICA FOR REPORTS AND WOULD ALSO SET UP NEW OPERATIONS AS THE VENTURE GROWS THAT VENTURE MAY RUN INTO COMPETITION FROM TURNER BROADCASTING SYSTEM INC'S CNN INTERNATIONAL WHICH ALSO REACHES LATIN AMERICA BUT AIRS MOSTLY ENGLISHLANGUAGE PROGRAMMING 9302260084 930226 WESTINGHOUSE LAWYER URGED IN '88 NOTE THAT TOXICSAFETY RECORDS BE DESTROYED BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP INTERNAL SAFETY RECORDS LEFT THE COMPANY VULNERABLE TO LAWSUITS BY EMPLOYEES EXPOSED TO TOXIC MATERIALS AND SHOULD BE DESTROYED A COMPANY LAWYER WROTE IN A 1988 MEMO THE FILES WERE MAINLY PLANTSAFETY AUDITS FROM THE COMPANY'S INDUSTRIAL HYGIENE DEPARTMENT DATED BEFORE 1974 IN HIS 1988 MEMO THE LAWYER RECOMMENDED THAT THE AUDITS BE DESTROYED BECAUSE THEY WERE CRITICAL OF WESTINGHOUSE OPERATIONS AND SHOW CORPORATE KNOWLEDGE OF HAZARDS BUT NO ACTUAL IMPLEMENTATION OF CORRECTIVE MEASURES THOUGH WESTINGHOUSE INSISTS THAT NO DOCUMENTS WERE DESTROYED THE CONFIDENTIAL MEMO IS LIKELY TO BE USED AGAINST THE COMPANY IN WHAT PLAINTIFFS' ATTORNEYS SAY ARE THOUSANDS OF CASES ALLEGING WORKERS' EXPOSURE TO ASBESTOS PCBS AND OTHER TOXIC SUBSTANCES THE MEMO WAS RELEASED FROM SEALED FILES THIS WEEK IN THE COURSE OF SEVERAL OF THESE LAWSUITS LOUIS BRISKMAN WESTINGHOUSE'S GENERAL COUNSEL SAID THE MEMO WAS A RECOMMENDATION BY AN ENTRYLEVEL ATTORNEY AND WAS NEVER IMPLEMENTED HE ADDED THAT THE MEMO NEVER INTENDED TO RECOMMEND DESTRUCTION OF FILES RELATING TO ONGOING CASES WHICH HE SAID HAD ALREADY BEEN SET ASIDE BEFORE THE MEMO WAS WRITTEN WE DIDN'T DESTROY ANYTHING HE SAYS WE EVEN KEPT THE MEMO LEGAL ETHICS STANDARDS GENERALLY REQUIRE ONLY THAT COMPANIES KEEP DOCUMENTS RELATING TO CASES THAT ARE PENDING OR IMMINENT IN THIS CASE WESTINGHOUSE WAS ALREADY FACING SEVERAL ASBESTOS LAWSUITS WHEN THE 1988 MEMO WAS WRITTEN THE MEMO WAS WRITTEN BY TWO STAFFERS LAWYER JEFFREY BAIR AND CW BICKERSTAFF THEN MANAGER OF CORPORATE INDUSTRIAL HYGIENE IT RECOMMENDED DESTROYING PLANTSAFETY AUDITS AND OTHER MATERIAL FROM THE COMPANY'S INDUSTRIAL HYGIENE DEPARTMENT THAT CRITICIZES WESTINGHOUSE OPERATIONS AND POINTS OUT DEFICIENCIES THE MEMO STATES THAT INDUSTRIAL HYGIENE'S FILES CONTAIN INFORMATION WHICH DETAILS THE VARIOUS CHEMICAL SUBSTANCES USED AT WESTINGHOUSE SITES OVER THE YEARS AND OFTEN TIMES THE INADEQUACIES IN WESTINGHOUSE'S HANDLING OF THE SUBSTANCES THE FILES CONTAIN MANY YEARS OF EMPLOYEE TEST RESULTS SOME OF THEM UNFAVORABLE THE MEMO ADDS THE FACT THAT THE CORPORATION PERFORMED FOR EXAMPLE AIR SAMPLING FOR CERTAIN SUBSTANCES AS EARLY AS 1940 WHICH IN FACT IT DID MIGHT BE USED TO PROVE EARLY KNOWLEDGE ON THE PART OF THE CORPORATION OF HAZARDS ASSOCIATED WITH SUCH SUBSTANCES THE MEMO ALSO NOTES THAT THE FILES DON'T SHOW WHETHER THE COMPANY IMPLEMENTED SAFETY RECOMMENDATIONS MADE BY ITS INDUSTRIAL HYGIENE DEPARTMENT OR DISCUSSED THE AUDITS WITH EMPLOYEES OR THE PUBLIC WITHOUT THIS INFORMATION THE MEMO SAYS THESE FILES SHOW CORPORATE KNOWLEDGE OF HAZARDS BUT NO ACTUAL IMPLEMENTATION OF CORRECTIVE MEASURES SUCH MATERIAL CAN BE DANGEROUS IN A LAWSUIT THE MEMO CONCLUDES 9302260083 930226 WALL STREET INVESTOR SERVICES IS CENSURED BY STOCK EXCHANGE NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT CENSURED AND LEVIED A FINE OF 100000 AGAINST WALL STREET INVESTOR SERVICES A NEW YORKBASED MEMBER FIRM FOR VIOLATING FINANCIAL AND BOOKKEEPING REQUIREMENTS THE EXCHANGE ALSO IMPOSED PENALTIES AGAINST TWO FORMER COCHIEF OPERATING OFFICERS OF THE FIRM JOHN THOMAS GABRIEL OF STATEN ISLAND NY AND GEORGE ZINNIE OF EDISON NJ MR GABRIEL WAS CENSURED AND SUSPENDED FOR A MONTH WHILE MR ZINNIE WAS CENSURED AND BARRED FOR TWO WEEKS NEITHER MR GABRIEL NOR MR ZINNIE COULD BE REACHED FOR COMMENT ERIC ALEXANDER WALL STREET INVESTOR'S EXECUTIVE VICE PRESIDENT SAID THE VIOLATIONS DATED BACK TO 1985 WHEN THE FIRM WAS KNOWN AS WALL STREET CLEARING CO AND PROVIDED CLEARING AND EXECUTION SERVICES TO BROKER DEALERS THE CLEARING BUSINESS WAS SOLD IN 1989 WHEN THE COMPANY WAS RESTRUCTURED AND SENIOR MANAGEMENT REORGANIZED HE SAID THE OFFENSES WERE TECHNICAL VIOLATIONS OF RULES THAT WERE CONSIDERED AT BEST UNCLEAR AT THE TIME THE CHARGES IN THE CASE WHICH WERE CONTESTED BY THE DEFENDANTS INCLUDED VIOLATION OF FEDERAL REGULATIONS ON PHYSICAL POSSESSION OR CONTROL OF CUSTOMERS' SECURITIES AND COMMINGLING OF SECURITIES AND THE SALE OF SECURITIES FOR CUSTOMERS IN CASH ACCOUNTS WITHOUT A GOODFAITH BELIEF THAT THE CUSTOMERS OWNED THE SECURITIES 9302260082 930226 BUSINESS BRIEF ACXIOM CORP PLAN ADOPTED TO BUY BACK UP TO 2 OF SHARES A YEAR ACXIOM CORP CONWAY ARK SAID IT WILL REPURCHASE AS MUCH AS 2 OF ITS COMMON SHARES ANNUALLY UNDER A NEW POLICY ADOPTED BY THE COMPANY'S BOARD CHARLES D MORGAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IT'S UNLIKELY THE COMPANY WILL BUY THE ENTIRE AMOUNT AUTHORIZED BY THE BOARD HE SAID SHARES WILL ONLY BE BOUGHT AT TIMES AND IN AMOUNTS THAT THE COMPANY DEEMS ADVANTAGEOUS ACXIOM CURRENTLY HAS ABOUT 104 MILLION SHARES OUTSTANDING IN THE LAST FOUR YEARS THE COMPANY WHICH PROCESSES MARKETING DATA HAS BOUGHT SMALL BLOCKS OF STOCK TOTALING 375600 SHARES UNDER PAST REPURCHASE POLICIES MR MORGAN SAID FUTURE REPURCHASED SHARES WILL BE AVAILABLE TO FUND THE COMPANY'S EMPLOYEE BENEFIT PLANS AS WELL AS FOR OTHER PURPOSES 9302260081 930226 CREDIT MARKETS CORPORATIONS OFFER RECORD AMOUNT IN ISSUES MOVING TO TAKE ADVANTAGE OF LOW INTEREST RATES BY TERENCE DONNELLY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CORPORATIONS RUSHED A RECORD AMOUNT OF NEW NOTES AND BONDS TO THE MARKET YESTERDAY TO TAKE ADVANTAGE OF THE LOWEST LONGTERM INTEREST RATES IN TWO DECADES THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND REMAINED UNCHANGED YESTERDAY AT 688 AS ITS PRICE DROPPED VERY SLIGHTLY TO 102 29/32 BEFORE LAST WEEK THE BOND YIELD HAD NEVER DIPPED BELOW 710 SINCE THE TREASURY BEGAN REGULAR 30YEAR BOND AUCTIONS IN 1977 THE PRICE OF 10YEAR NOTES DROPPED 1/8 POINT TO 101 17/32 TO YIELD 603 UP FROM 601 ON WEDNESDAY THE YIELD ON THE 10YEAR NOTE HAS HOVERED AT 20YEAR LOWS FOR THE PAST FOUR TRADING SESSIONS WHILE INTEREST IN THE CORPORATE NOTES AND BONDS SEEMED STRONG SAID UNDERWRITERS DEMAND WAS NOT NEARLY AS STRONG AS IN JANUARY WHEN CORPORATIONS ISSUED MORE THAN 37 BILLION OF NEW NOTES AND BONDS SOME UNDERWRITERS WORRIED THAT YESTERDAY'S FLOOD OF NEW ISSUANCE COULD QUELL THE STRONG INVESTOR DEMAND FOR NEW CORPORATE BONDS IN EVIDENCE SO FAR THIS YEAR THE KINDS OF COMPANIES NOW COMING TO THE MARKET MAY SPOOK INVESTORS SAID JAMES B QUIGLEY MANAGING DIRECTOR OF THE CORPORATE SYNDICATE DESK AT MERRILL LYNCH & CO THAT'S BECAUSE HISTORY HAS PROVEN THAT WHEN YOU SEE THOSE SORTS OF NAMES BUNCHED TOGETHER WE'RE NEAR A TOP FOR CORPORATE BOND PRICES HE SAID MR QUIGLEY SAID THAT INFREQUENT INDUSTRIAL BORROWERS SUCH AS PHONE COMPANIES TEND TO COME TO MARKET RIGHT BEFORE PRICES BEGIN TO DECLINE RIGHT NOW THE MARKET NEEDS TO HAVE A BREATHER TO DIGEST ALL OF THIS ISSUANCE HE SAID A HUGE AMOUNT OF CASH NEEDED TO BE INVESTED IN JANUARY ADDED MR QUIGLEY BUT MUCH OF THAT HAS SINCE BEEN INVESTED HE SAID THAT MANY UNDERWRITERS WERE PROBABLY HOLDING A DECENT AMOUNT OF UNSOLD NOTES AND BONDS AT THE END OF YESTERDAY INDEED THE YIELD GAP BETWEEN CORPORATE BOND YIELDS AND TREASURYS WITH COMPARABLE MATURITIES APPEARED TO WIDEN IN THE WAKE OF THE HUGE SUPPLY OF NEW ISSUES SUGGESTING THAT DEMAND MAY BE WEAKENING BUT THE OVERALL MARKET TONE REMAINED ON THE POSITIVE SIDE FOR CORPORATE ISSUES TRADERS SAID BORROWERS OF NEARLY EVERY STRIPE WERE SEEN ISSUING NEW PAPER YESTERDAY INCLUDING INDUSTRIALS RETAIL STORES AND ELECTRIC UTILITIES AMONG THEM WAS THE TENNESSEE VALLEY AUTHORITY WHICH SOLD 1 BILLION OF NEW BONDS TVA HAD TOLD SOME UNDERWRITERS AS RECENTLY AS WEDNESDAY THAT IT DID NOT HAVE PLANS TO COME TO THE MARKET YESTERDAY AND IN JANUARY WITH LONGTERM INTEREST RATES DROPPING COMPANY OFFICIALS SAID THAT THEY HAD NO IMMEDIATE PLANS TO COME TO THE MARKET AGAIN THIS YEAR THAT WAS OUR PLAN SAID WILLIAM F MALEC TVA'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER BUT THE TREASURY CURVE HAS CHANGED RAPIDLY SINCE THEN AS RATES HAVE DROPPED SHARPLY YESTERDAY'S LARGEST ISSUE CAME LATE IN THE DAY FROM DEAN WITTER DISCOVER & CO WHICH SOLD 15 BILLION OF FIVEYEAR AND 10YEAR NOTES THE DEAL COMING THREE DAYS AFTER THE COMPANY LAUNCHED A 295 MILLION SHARE INITIAL PUBLIC OFFERING WAS INCREASED ON CUSTOMER DEMAND FROM 650 MILLION ACCORDING TO SYNDICATE OFFICIALS DEAN WITTER DISCOVER IS A UNIT OF SEARS ROEBUCK & CO AND INCLUDES THE BROKERAGE FIRM DEAN WITTER REYNOLDS INC AND THE DISCOVER CREDIT CARD COMPANY DEAN WITTER REYNOLDS THE UNDERWRITER FOR THE OFFERING HAD PLANNED A 250 MILLION ISSUE OF FIVEYEAR NOTES AND A 400 MILLION ISSUE OF 10YEAR NOTES EACH ISSUE WAS INCREASED TO 750 MILLION DEAN WITTER DISCOVER WHICH IS BEING SPUN OFF FROM SEARS ROEBUCK RECENTLY FILED A SHELF WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE 3 BILLION IN SECURITIES A 750 MILLION ISSUE OF NOTES DUE MARCH 1 1998 WAS PRICED AS 6 SECURITIES AT 99701 TO YIELD 607 A 082 PERCENTAGE POINT SPREAD ABOVE THE FIVEYEAR TREASURY NOTE A 750 MILLION ISSUE OF NOTES DUE MARCH 1 2003 WAS PRICED AS 6875 SECURITIES AT 99536 TO YIELD 694 A 090 PERCENTAGE POINT SPREAD ABOVE THE 10YEAR TREASURY NOTE THE NONCALLABLE NOTES WERE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP INSURANCE COMPANIES AND STATE PENSION FUNDS SNAPPED UP CORPORATE BONDS YESTERDAY TRADERS SAID WHILE SOME BUYERS MERELY REPLACED ISSUES THAT HAVE BEEN CALLED RECENTLY NEW MONEY FROM INVESTORS SELLING MORTGAGE ISSUES CAME INTO THE MARKET AS WELL A LARGE PROPORTION OF YESTERDAY'S ISSUANCE WAS OF DEBT MATURING IN 30 YEARS OR LONGER CONTINUING A TREND THAT STARTED EARLIER THIS YEAR AND ASIDE FROM TVA WHICH CARRIES A TRIPLEA RATING ON MUCH OF ITS SENIOR DEBT ISSUANCE WAS CONCENTRATED AMONG COMPANIES RATED TRIPLEB OR SINGLEA BY THE MAJOR RATING AGENCIES INVESTORS ALSO APPEARED TO FAVOR COMPANIES THAT HAVE BEEN INFREQUENT BORROWERS RECENTLY SUCH AS PRAXAIR INC AN INDUSTRIAL GASES AND SPECIAL COATINGS COMPANY AND BASS AMERICA INC A UNIT OF LONDONBASED BASS PLC THE DEMAND FOR HIGHER YIELDS WAS FURTHER UNDERSCORED BY THE HUGE SUCCESS OF YESTERDAY'S NEW HIGHYIELD OFFERINGS FROM COMPANIES SUCH AS BE AEROSPACE INC A MAKER OF AIRLINE CONTROL SYSTEMS AND WEIRTON STEEL PRICES OF TREASURY NOTES AND BONDS FINISHED SLIGHTLY LOWER YESTERDAY AFTER RISING MORE THAN 5/8 POINT EARLIER IN THE DAY A HOST OF FACTORS ARE SAID TO HAVE CONTRIBUTED TO THE BOND MARKET'S FALL FROM HIGHS INCLUDING HEDGING OF SOME 581 BILLION IN NEW CORPORATE BOND DEALS AND RUMORS OF ONE OR MORE LARGE SELLERS OF FIVEYEAR AND 10YEAR NOTES ONE PARTICIPANT SPECULATED THAT SOME OF THE SELLING MAY HAVE COME FROM JAPANESE ACCOUNTS AND THAT THE ACTION MIGHT HAVE BEEN RELATED TO SECURITIES AND EXCHANGE COMMISSION CHARGES OF SECURITIES LAWS VIOLATIONS BY FOUR JAPANESE FIRMS SUBSEQUENTLY THE TREASURY RESTRICTED BIDDING IN GOVERNMENT AUCTIONS BY DAIWA SECURITIES AMERICA INC TO PURCHASES FOR THE FIRM'S OWN ACCOUNT FOR THREE MONTHS DAIWA IS A UNIT OF JAPAN'S DAIWA SECURITIES CO THE FEDERAL RESERVE BANK OF NEW YORK ALSO SUSPENDED ITS TRADING WITH DAIWA FOR ONE MONTH BEGINNING MARCH 1 BUT LEFT UNCHANGED THE FIRM'S DESIGNATION AS A PRIMARY DEALER OF US GOVERNMENT SECURITIES ALSO PARTICIPANTS POINTED TO A CONGRESSMAN'S WARNING THAT CONGRESS SHOULD CONSIDER CHANGES IN THE FEDERAL RESERVE SYSTEM IF THE FED IS NOT PREPARED TO GET IN LINE WITH THE PRESIDENT PARTICIPANTS SAY THE COMMENT BY REP LUCIEN BLACKWELL D PA THAT NO INSTITUTION SHOULD BE ALLOWED TO STAND IN THE WAY OF ECONOMIC PROGRESS SERVED AS A WARNING FLAG IN A MARKET THAT HAS BECOME A BIT NERVOUS AT SUCH HIGH PRICE LEVELS WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC SAID SOME PLAYERS LIKELY READ THE COMMENTS AS A SIGN THAT THE FED'S INDEPENDENCE WAS BEING OR WOULD BE COMPROMISED THE PRICE OF THE TREASURY'S BENCHMARK LONG BOND DROPPED SLIGHTLY WHILE ITS YIELD WAS UNCHANGED THE PRICE OF 10YEAR NOTES DROPPED 1/8 POINT WHILE OTHER SECURITIES HAD SMALLER CHANGES OR DIDN'T MOVE AT ALL LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 FELL 500 MILLION IN THE WEEK ENDED FEB 15 THAT DROP PUSHES THE M2 GROWTH RATE DOWN TO NEGATIVE 27 FROM THE FOURTHQUARTER BASE OF 1992 FAR BELOW THE FED'S NEW TARGET RANGE OF 26 THE NEWS HAD NO APPARENT IMPACT ON TREASURY PRICES TODAY THE GOVERNMENT IS SCHEDULED TO REPORT FOURTHQUARTER GROSS DOMESTIC PRODUCT ECONOMIC ACTIVITY IS EXPECTED TO BE REVISED TO A 43 GROWTH RATE IN THE FINAL QUARTER OF 1992 UP FROM THE PREVIOUS ESTIMATE OF 38 GROWTH ACCORDING TO ANOTHER CONSENSUS OF ECONOMISTS PRICES OF MUNICIPAL BONDS ENDED MIXED THE MARKET SEEMED A BIT SHAKY AFTER WEDNESDAY'S SLIP BUT TRADERS SAY IT IS ONLY A MATTER OF TIME BEFORE TAXEXEMPT ISSUES START RISING AGAIN ON CONCERNS ABOUT THE HIGHER INCOME TAXES PROPOSED BY PRESIDENT CLINTON AMONG SEASONED ISSUES THE NEW JERSEY TURNPIKE AUTHORITY'S 650 SERIES C TURNPIKE REVENUE REFUNDING BONDS OF 2016 CLOSED 1/4 POINT LOWER AT 111 TO YIELD 560 HOWEVER THERE WAS SOME BUYING OF THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 550 POWER SYSTEM REVENUE REFUNDING BONDS OF 2017 THEY FINISHED 1/2 FIRMER AT 98 3/8 TO YIELD 561 BOTH THOSE OFFERINGS HAVE RISEN FAR AND FAST IN A SHORT PERIOD OF TIME JUST LAST WEEK THE NEW JERSEY BONDS TRADED AT LEVELS AROUND 109 AND THE NORTH CAROLINA BONDS WERE AROUND 96 1/2 MEANWHILE CALIFORNIA FINANCIAL OFFICIALS ANNOUNCED THAT THE STATE WILL ISSUE 25 BILLION IN REVENUE ANTICIPATION NOTES AS EARLY AS APRIL 22 IN ORDER TO ALLEVIATE ITS PROJECTED 25 BILLION CASH SHORTFALL THIS FISCAL YEAR STATE COMPTROLLER GRAY DAVIS WHILE AGREEING TO THE PLANNED OFFERING SAID IT COULDN'T GUARANTEE THAT THE STATE WON'T HAVE TO ISSUE IOUS BY THIS SUMMER LAST SUMMER THE STATE WAS FORCED TO ISSUE IOUS DURING A BUDGET CRISIS WE MUST AVOID IOUS AGAIN AT ALL COSTS SAID MR DAVIS UNFORTUNATELY THE GOVERNOR'S BORROWING PLAN LEAVES NO MARGIN FOR ERROR NO MARGIN FOR A BUDGET DEADLOCK AND NO MARGIN FOR UNFORESEEN DEVELOPMENTS PRICES OF MORTGAGE SECURITIES PRICES ENDED ABOUT EVEN WITH MODEST SUPPORT FROM SOME INVESTORS RETURNING TO THE BATTERED MARKET TO HUNT FOR BARGAINS THIS WAS A WELCOME RESPITE FOR MORTGAGE SECURITIES AFTER DRAMATIC UNDERPERFORMING TREASURYS FOR SEVERAL PRIOR DAYS WHILE MORTGAGE RATES FELL AND PREPAYMENT FEARS SWEPT THE MARKET THE YIELD PREMIUM ON MORTGAGE SECURITIES RELATIVE TO TREASURYS WIDENED CONSIDERABLY EARLIER IN THE WEEK THE YIELD SPREAD ON 75 MORTGAGE ISSUES FOR EXAMPLE EXPANDED AT LEAST 010 PERCENTAGE POINT IN THE FIRST TWO DAYS OF THE WEEK BUT THAT DIFFERENTIAL HAS SINCE NARROWED BY A TOTAL OF 002 TO 003 PERCENTAGE POINT AMID THE BOTTOMFISHING IN THE PRIMARY MARKET ONLY ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERING WAS ANNOUNCEDA FREDDIE MAC 300 MILLION ISSUE SERIES GOLD 1488 BACKED BY THE AGENCY'S GOLD 15YEAR 7 MORTGAGE SECURITIES SAM ALCORN CONTRIBUTED TO THIS ARTICLE 9302260080 930226 MEDICINE PHARMACY CHAIN'S SUCCESSFUL SALES PITCH DISMAYS SOME DOCTORS AND DRUG FIRMS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL WILMINGTON MASS STACKED IN FRONT OF PHARMACIST JOHN BOLERO ARE A HALFDOZEN MAILORDER PRESCRIPTIONS THAT BOTHER HIM THEY CALL FOR ULCER PATIENTS TO GET ZANTAC THE MARKETLEADING BRAND MR BOLERO WANTS TO SWITCH THOSE PATIENTS TO TAGAMET A CHEAPER COMPETING DRUG THAT HIS PHARMACY CHAIN HAS STOCKPILED IN A GIANT WAREHOUSE NEARBY HE HASN'T MET ANY OF THE PATIENTS HE DOESN'T KNOW MUCH ABOUT THEIR MEDICAL CONDITIONS BUT THAT DOESN'T STOP HIM FROM TELEPHONING DOCTORS THROUGHOUT THE US ASKING THEM TO REWRITE PRESCRIPTIONS AS MR BOLERO WORKS THE PHONES HE KEEPS HARPING ON ONE THEME COSTCUTTING WE CAN SAVE YOUR PATIENT 50 ON HER PRESCRIPTION CHARGES HE TELLS ONE BOSTONAREA DOCTOR IF YOU ARE ABLE TO PRESCRIBE TAGAMET INSTEAD THAT SALES PITCH IS PROVING REMARKABLY POTENT AND CONTROVERSIAL MORE THAN 40 OF DOCTORS WHO GET CALLS FROM MR BOLERO AND HIS COLLEAGUES AT MEDCO CONTAINMENT SERVICES INC ARE AGREEING TO REVISE THEIR PRESCRIPTIONS SINGLEHANDEDLY MEDCO IS SWITCHING 50000 PRESCRIPTIONS A MONTH IN EIGHT MAJOR DRUG CATEGORIES SWAYING MARKET SHARES IN THE COMPETITIVE PHARMACEUTICAL INDUSTRY MEDCO'S SUCCESS AMOUNTS TO A CASE STUDY OF MANAGED COMPETITION A POPULAR IDEA FOR HEALTHCARE REFORM UNDER MOST MANAGEDCOMPETITION PROPOSALS INCLUDING ONES UNDER STUDY BY THE CLINTON ADMINISTRATION POWERFUL BUYERS' GROUPS ARE MEANT TO NEGOTIATE AGGRESSIVELY WITH HOSPITALS DOCTORS AND DRUG COMPANIES BY CONCENTRATING AUTHORITY IN BUYERS' HANDS THE THINKING GOES IT SHOULD BE POSSIBLE TO GET BETTER CARE AT LOWER COST FOR MEDCO SUCH CLOUT IS HEADY STUFF BY SELLING MAILORDER DRUGS AT CUTRATE PRICES MONTVALE NJBASED MEDCO HAS BECOME ONE OF THE NATION'S LARGEST PROVIDERS OF PILLS ITS 11 REGIONAL NATIONAL RX PHARMACIES RANG UP SALES OF MORE THAN 2 BILLION IN 1992 CLIENTS INCLUDE THE EMPLOYEEBENEFIT PLANS OF GENERAL MOTORS CORP GENERAL ELECTRIC CO AND NEARLY 100 OTHER FORTUNE 500 COMPANIES REAPING THE BIGGEST REWARD IS MEDCO'S CHAIRMAN MARTIN WYGOD LAST YEAR HE RANKED AMONG THE FIVE HIGHESTPAID EXECUTIVES IN THE US WITH A 33 MILLION PAY PACKAGE CONSISTING MOSTLY OF VALUABLE STOCK OPTIONS MR WYGOD CONTENDS HE DESERVES EVERY CENT OF IT FOR MAKING MEDCO THE WALMART OF PILLS BUT MEDCO'S HARDEDGED TACTICS ARE MAKING ENEMIES TOO SOME DOCTORS SEETHE AT MEDCO'S DRUGSUBSTITUTION CAMPAIGN ESPECIALLY IF A PROPOSED SWITCH MIGHT CAUSE A HARMFUL REACTION IN A PATIENT DOCTORS CAN VETO SUCH SUBSTITUTIONS RETAIL PHARMACY GROUPS HAVE THEIR OWN GRIPES THEY COMPLAIN THAT MEDCO BUYS DRUGS AT WHAT THEY REGARD AS UNFAIRLY LOW PRICES AND MAJOR PHARMACEUTICAL COMPANIES WHILE THEY WANT MEDCO AS A CUSTOMER AREN'T THRILLED WITH THE TERMS IT DEMANDS ALL DRUGS IN A THERAPEUTIC CLASS SHOULD BE AVAILABLE TO PATIENTS SAYS A SPOKESWOMAN FOR GLAXO HOLDINGS PLC WHICH MAKES ZANTAC PHYSICIANS OUGHT TO DECIDE WHICH MEDICINE IS BEST ON THE BASIS OF CLINICAL NEEDS WHILE GLAXO WON'T PUBLICLY CRITICIZE MEDCO IT HAS MADE CLEAR TO SECURITIES ANALYSTS THAT IT DOESN'T LIKE MEDCO'S CLOSE TIE IN WITH SMITHKLINE BEECHAM PLC THE RIVAL DRUG COMPANY THAT MAKES TAGAMET STRAINS HAVE EXISTED TOO IN MEDCO'S RELATIONS WITH THE LARGEST US DRUG COMPANY MERCK & CO DOUGLAS MACMASTER A MERCK SENIOR VICE PRESIDENT RECALLS A FIERY DEBATE A FEW YEARS AGO WITH MEDCO'S MR WYGOD ABOUT WHETHER MEDCO WAS ENTITLED TO DEEP DISCOUNTS ON PURCHASES FROM MERCK TALKS GOT SO STRIDENT BOTH MEN RECALL THAT MR MACMASTER AT ONE POINT CHALLENGED THE MUCH SMALLER MR WYGOD TO A FIST FIGHT MERCK OFFICIALS WON'T DISCUSS CURRENT RELATIONS WITH MEDCO EXCEPT TO SAY THAT IT IS A VALUED CUSTOMER BUT MR MACMASTER SAYS THE QUESTION OF WHETHER TO AGREE TO MEDCO'S CUTRATE TERMS REMAINS THORNY PHILOSOPHICALLY YOU THINK IT'S THE WRONG THING TO DO HE SAYS WE ALWAYS TRIED TO HAVE A ONEPRICE POLICY BUT IF THERE'S ENOUGH CLOUT ON THE OTHER SIDE YOU DON'T HAVE MUCH CHOICE THE 53YEAROLD MR WYGOD WAS A COMMERCE MAJOR AT NEW YORK UNIVERSITY AND WENT TO WORK ON WALL STREET AFTER GRADUATING IN 1961 HE SPENT MOST OF THE NEXT 20 YEARS IN SMALLSCALE INVESTMENT BANKING OR ACQUISITIONS IN 1984 AFTER CASHING OUT HIS MOST SUCCESSFUL INVESTMENT FOR A 10 MILLION PROFIT HE BEGAN LOOKING FOR SOMETHING NEW I FELT HEALTH CARE HAD TREMENDOUS OPPORTUNITIES MR WYGOD RECALLS BUT THE BIGGEST COMPANY HE COULD AFFORD WAS NATIONAL PHARMACIES A VITAMIN DISTRIBUTOR WITH ONLY FOUR SIGNIFICANT MAILORDER PHARMACY ACCOUNTS CONTROLLING THE COMPANY WAS FINANCIER VICTOR POSNER WHO SOLD IT FOR 25 MILLION TO MEDCO AN ACQUISITION VEHICLE CONTROLLED BY MR WYGOD WITHIN A YEAR MR WYGOD HAD JETTISONED THE VITAMIN BUSINESS AND MORE THAN DOUBLED THE MAILORDER DRUG BUSINESS MR WYGOD'S TIMING WAS PERFECT VARIOUS NONPROFIT ENTITIES CHIEFLY THE VETERANS ADMINISTRATION HAD BEEN HANDLING LONGTERM PRESCRIPTIONS BY MAIL SINCE 1946 THIS WAS REGARDED AS AN EFFICIENT WAY TO GET REGULARLY NEEDED MEDICINE IN THE HANDS OF THE CHRONICALLY ILL BUT THE FEW PROFITORIENTED MAILORDER FIRMS LACKED ANY WAY TO SIGN UP CUSTOMERS EN MASSE AS A RESULT MAIL ORDER ACCOUNTED FOR LESS THAN 2 OF ALL PRESCRIPTIONS IN 1984 AS LARGE CORPORATIONS BEGAN LOOKING FOR WAYS TO HOLD DOWN COSTS IN EMPLOYEEBENEFIT PROGRAMS THOUGH THE MAILORDER BUSINESS BOOMED MEDCO LANDED SUCH ACCOUNTS AS GM COMMONWEALTH EDISON CO AND THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM OR CALPERS OUR MEDICAL COSTS WERE SKYROCKETING EXPLAINS DOROTHY PAGE A BENEFITS MANAGER AT COMMONWEALTH EDISON IN CHICAGO WE WANTED A WAY TO SAVE MONEY ON A PERPRESCRIPTION BASIS MEDCO FOUND IT COULD UNDERCUT THE TYPICAL RETAIL PHARMACY 25 OR MORE PART OF THOSE SAVINGS REFLECTED AUTOMATION AT MEDCO'S LARGE DISPENSING PHARMACIES WHERE PILLCOUNTING MACHINES LET TECHNICIANS AND PHARMACISTS EACH PROCESS AS MANY AS 70 PRESCRIPTIONS AN HOUR BUT MEDCO ALSO GOT AN EDGE BY NEGOTIATING LOWER PURCHASE PRICES FROM DRUG COMPANIES AS A CONSEQUENCE OF ITS HIGH VOLUME THEN IN LATE 1990 MEDCO DECIDED TO EMULATE A TECHNIQUE USED BY SOME BIG HOSPITALS TO CUT THEIR DRUGBUYING COSTS EVEN FURTHER MEDCO BEGAN CALLING ON MAJOR PHARMACEUTICAL COMPANIES WITH A DOUBLEEDGED PROPOSITION CALLED PRESCRIBER'S CHOICE IF DRUG COMPANIES AGREED TO SELL CERTAIN PRODUCTS TO MEDCO AT DEEPER DISCOUNTS THOSE DRUGS WOULD BE ACTIVELY PROMOTED AS MEDCO'S TOP CHOICE IN THAT CATEGORY MARKET SHARE AMONG MEDCO CUSTOMERS COULD SURGE BUT IF DRUG COMPANIES DIDN'T AGREE THEY RAN THE RISK THAT A COMPETITOR WOULD SIGN UP AND BEGIN SNATCHING PRESCRIPTIONS AWAY WITH MEDCO'S BLESSING AN EARLY TARGET WAS THE 3 BILLIONAYEAR MARKET FOR ULCER MEDICATION IN WHICH MEDCO ACCOUNTS FOR ABOUT 10 OF NATIONWIDE VOLUME IT HAD JUST THE CHARACTERISTICS THAT MEDCO WANTED BIG ANNUAL SALES FOUR MODERATELY SIMILAR DRUGS LOTS OF REPEAT CUSTOMERS AMONG PATIENTS AND FIERCE COMPETITION FOR MARKET SHARE MEDCO BEGAN TALKS WITH ALL FOUR LEADING PRODUCERS GLAXO SMITHKLINE BEECHAM MERCK AND ELI LILLY & CO BEFORE LONG SAYS PER LOFBERG A MEDCO SENIOR EXECUTIVE VICE PRESIDENT SMITHKLINE EMERGED AS THE MOST INTERESTED PARTY ITS TAGAMET ONCE THE NO 1 BRAND HAD SLUMPED TO LESS THAN A 25 MARKET SHARE AND NEEDED HELP IF SALES WERE TO REVIVE ON JULY 1 1991 SMITHKLINE AGREED TO CUT ITS PRICE SIGNIFICANTLY TO MEDCO IN RETURN FOR TOP BILLING IN THE NEW PRESCRIBER'S CHOICE PROGRAM NEITHER SIDE WILL DISCLOSE EXACT TERMS BUT ESTIMATES ARE THAT BENEFIT PLANS CAN BUY TAGAMET FROM MEDCO AT A COST PER DAY OF THERAPY THAT IS 20 BELOW ZANTAC'S PRICE ORDINARILY THAT GAP IS ABOUT 11 SAYS ALEX BROWN & SONS ANALYST BARBARA RYAN SAVINGS ARE EVEN GREATER FOR PATIENTS WHO ORDINARILY MUST PAY 6 OR 10 FOR EACH PRESCRIPTION FOR DRUGS FAVORED IN THE PRESCRIBER'S CHOICE PROGRAM HOWEVER PATIENTS' COPAYMENTS USUALLY ARE HALF THE STANDARD AMOUNT A POTENTIAL SAVINGS THAT MEDCO HIGHLIGHTS IN ITS PHONE CALLS TO DOCTORS DEFIANT DOCTORS WITH SQUADS OF MEDCO PHARMACISTS LOBBYING DOCTORS TO SWITCH TAGAMET'S SHARE AMONG MEDCO CLIENTS IN THE PRESCRIBER'S CHOICE PROGRAM HAS CLIMBED EIGHT PERCENTAGE POINTS IN THE PAST YEAR TO 31 OF THE ANTIULCER MARKET MEANWHILE ZANTAC HAS SLIPPED A COMPARABLE AMOUNT TO 47 ACCORDING TO DATA MEDCO RECENTLY AIRED AT AN INVESTOR PRESENTATION THIS CRUSADE FOR TAGAMET GALLS SOME PHYSICIANS I DON'T LIKE SOMEONE TELLING ME WHAT TO PRESCRIBE SAYS EDGAR JONES A FAMILYPRACTICE DOCTOR IN GALVESTON TEXAS OVER THE PAST YEAR HE SAYS HE HAS RECEIVED ABOUT 10 CALLS FROM MEDCO ASKING HIM IF HE WANTS TO TRANSFORM A ZANTAC PRESCRIPTION INTO A TAGAMET ONE HIS ANSWER EVERY TIME NO MEDCO'S PROGRAM GOES FAR BEYOND SIMPLY USING A GENERIC CHEMICALLY IDENTICAL FORM OF A DRUG INSTEAD OF THE COSTLIER BRANDED VERSION THAT PRACTICE KNOWN AS GENERIC SUBSTITUTION IS WIDELY ACCEPTED BY DOCTORS BUT MOST TOP DRUGS WITH PATENT PROTECTION DON'T HAVE GENERIC SUBSTITUTES THUS MEDCO'S PHARMACISTS ARE ASKING TO SUBSTITUTE CHEMICALLY DIFFERENT THOUGH SIMILAR DRUGS ON THE BASIS OF COST OTHER DOCTORS HOWEVER SAY THEY ARE WILLING TO ENTERTAIN MEDCO'S CALLS IF THERE'S A COST SAVINGS AND THERE'S NO NEGATIVE IMPACT ON A PATIENT I'M WILLING TO SWITCH SAYS CHARLES SCHWARTZ A BOSTON GASTROENTEROLOGIST SIX MONTHS AGO HE SAYS HE ACCEPTED A MEDCO INVITATION TO GO THE TAGAMET ROUTE INSTEAD OF ZANTAC FOR PATIENTS WHERE SUCH SWITCHES WOULDN'T BE WISE HE ADDS HE REJECTS THE PHARMACIST'S SUGGESTION IN THE PAST 18 MONTHS MEDCO HAS EXPANDED ITS PRESCRIBER'S CHOICE PROGRAM TO COVER SEVEN OTHER PHARMACEUTICAL CATEGORIES IT ALSO HAS SET UP A FORMULARY COVERING 18 DRUG CATEGORIES THIS FORMULARY LISTS A HANDFUL OF RELATIVELY CHEAP DRUGS IN A CATEGORY FOR WHICH MEDCO WILL REIMBURSE NEARLY ALL OF PATIENTS' COSTS IF DOCTORS PRESCRIBE A DRUG OUTSIDE THE FORMULARY PATIENTS MUST PAY A LARGER SHARE OFTEN MEDCO ENDS UP FAVORING OLDER DRUGS WITH RELATIVELY PUNY MARKET SHARES THE REASON SMALL SUPPLIERS ARE MORE LIKELY TO CUT PRICES IN RETURN FOR A CHANCE TO INCREASE MARKET SHARE AMONG CHOLESTEROLLOWERING DRUGS FOR EXAMPLE THE DOMINANT PRODUCT NATIONWIDE IS MERCK'S MEVACOR WITH ABOUT A 75 MARKET SHARE LAST YEAR ACCORDING TO ANALYSTS AT SANFORD C BERNSTEIN & CO BUT MEDCO IS PROMOTING PRAVACHOL MADE BY BRISTOLMYERS SQUIBB CO WHICH HAD JUST A 15 SHARE LAST YEAR SUCH SPECIAL TERMS INFURIATE RETAIL PHARMACISTS WHO FIND IT TOUGH TO COMPETE ON PRICE WITH THE LIKES OF MEDCO THE MAIN TRADE GROUP FOR LOCAL PHARMACISTS THE NATIONAL ASSOCIATION OF RETAIL DRUGGISTS IS LOOKING INTO ITS MEMBERS' COMPLAINTS ABOUT DISCRIMINATORY PRICING BY BIG DRUG COMPANIES ALLEN NICHOL A RETAIL PHARMACIST IN CORAL GABLES FLA SAYS LARGE BUYERS SUCH AS MEDCO CAN GET DEEP DISCOUNTS ON DRUG PURCHASES WHILE HE CAN'T THE DRUG COMPANIES TREAT US AS A DIFFERENT CLASS OF TRADE HE LAMENTS ON WALL STREET HOWEVER MEDCO'S AGGRESSIVE WAYS ARE SEEN AS A VIRTUE OVER THE PAST YEAR MEDCO STOCK HAS CLIMBED NEARLY 10 EVEN AS MOST DRUG STOCKS HAVE SKIDDED 20 OR MORE DOUGLAS MACMASTER IS A RETIRED SENIOR VICE PRESIDENT OF MERCK & CO IN AN ARTICLE FRIDAY ABOUT MEDCO CONTAINMENT SERVICES INC IT WAS INCORRECTLY STATED THAT MR MACMASTER IS CURRENTLY A SENIOR VICE PRESIDENT OF MERCK 9302260079 930226 WHO'S NEWS PEOPLES JEWELLERS' GERSTEIN QUITS POSTS TO RESCUE THE RETAILER TORONTO IRVING R GERSTEIN RESIGNED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PEOPLES JEWELLERS LTD TO ARRANGE A RESTRUCTURING OR ACQUISITION PROPOSAL FOR THE TROUBLED RETAILER THE BOARD CAN'T HAVE HIM RUNNING THE COMPANY AND HAVE HIM SEEKING A RESTRUCTURING SAID ROMAN DORONIUK CHIEF FINANCIAL OFFICER OF PEOPLES WHO WAS NAMED ACTING CHIEF OPERATING OFFICER YESTERDAY MR GERSTEIN WILL REMAIN A DIRECTOR OF PEOPLES HE IS ITS LARGEST SHAREHOLDER AND HAD BEEN CHIEF EXECUTIVE OFFICER SINCE 1975 MR DORONIUK SAID MR GERSTEIN ALONG WITH A FINANCING SOURCE THAT WASN'T DISCLOSED IS PLANNING AN INVESTMENT IN PEOPLES HE DECLINED TO SAY HOW THE PLANNED RESTRUCTURING WOULD BE ARRANGED PEOPLES HAS BEEN OPERATING UNDER CANADIAN BANKRUPTCYCOURT PROTECTION AGAINST CREDITORS SINCE LATE DECEMBER PEOPLES SAID ITS AUDITORS LOOKING INTO POSSIBLE IRREGULARITIES HAVE CONCLUDED THAT THE CARRYING VALUE OF ITS INVENTORY SHOULD BE WRITTEN DOWN BY ABOUT 13 MILLION CANADIAN DOLLARS US103 MILLION DUE TO CURRENT ECONOMIC CONDITIONS AND POSSIBLE INAPPROPRIATE ACCOUNTING ENTRIES THE COMPANY SAID AN INVESTIGATION WAS CONTINUING BUT DIDN'T ELABORATE MR DORONIUK SAID MR GERSTEIN'S RESIGNATION WASN'T RELATED TO THE PROBE PEOPLES HAS UNTIL TODAY TO FILE A RESTRUCTURING PLAN WITH THE COURT BUT MR DORONIUK SAID THE COMPANY WILL ASK THE COURT FOR A TENDAY EXTENSION AND PERMISSION TO TALK TO POSSIBLE BUYERS ABOUT SELLING SOME OF THE COMPANY'S ASSETS HE SAID THE REQUEST TO THE COURT ISN'T RELATED TO MR GERSTEIN'S PLANS PEOPLES OWNS 50 OF ZALE CORP THE LARGE US JEWELERY RETAILER THAT HAS BEEN OPERATING UNDER US BANKRUPTCYCOURT PROTECTION FROM CREDITORS FOR MORE THAN A YEAR PEOPLES AND SWAROVSKI INTERNATIONAL HOLDING AG OF ZURICH SWITZERLAND BOUGHT ZALE FOR ABOUT 650 MILLION IN 1986 9302260078 930226 BUSINESS BRIEF TRIANGLE CORP TOOL BUSINESSES TO BE SOLD TO COOPER INDUSTRIES INC TRIANGLE CORP STAMFORD CONN SAID IT SIGNED A LETTER OF INTENT TO SELL ALMOST ALL ITS HAND TOOL HORSESHOE AND FARRIER TOOL BUSINESSES TO COOPER INDUSTRIES INC THE BUSINESSES REPRESENTED ABOUT 90 OF TRIANGLE'S SALES OF 526 MILLION FOR FISCAL YEAR 1991 ALTHOUGH TERMS WEREN'T DISCLOSED TRIANGLE SAID THAT IF THE SALE TO COOPER IS COMPLETED IT WOULD BE AT A PRICE BELOW BOOK VALUE OF THE BUSINESSES' ASSETS COOPER BASED IN HOUSTON MAKES ELECTRICAL AND AUTOMOTIVE PRODUCTS AND PETROLEUM AND INDUSTRIAL EQUIPMENT TRIANGLE ALSO SAID IT WASN'T ABLE TO MAKE A 1 MILLION INTEREST PAYMENT DUE FEB 1 TO HOLDERS OF 15 MILLION OF ITS 1375 SENIOR SUBORDINATED DEBENTURES IT SAID IF IT DOESN'T MAKE THE PAYMENT BY MARCH 3 THE END OF THE GRACE PERIOD IT WILL BE IN DEFAULT 9302260077 930226 POLITICS & POLICY MODERATE GROWTH IN AIRLINE TRAFFIC PROJECTED BY FAA BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION IS PROJECTING MODERATE BUT SUSTAINED TRAFFIC GROWTH FOR THE NATION'S AIRLINE INDUSTRY INTO THE 21ST CENTURY BUT WHILE THE RECENT UPTURN IN THE US ECONOMY PROVIDES GROUNDS FOR CAUTIOUS OPTIMISM ACTING FAA ADMINISTRATOR JOSEPH DEL BALZO SAID THE BELEAGUERED INDUSTRY STILL WILL NEED GOVERNMENT ASSISTANCE TO PROSPER THE AIRLINES ARE STAGGERING FROM 10 BILLION IN LOSSES OVER THE PAST THREE YEARS IN ITS ANNUAL LONGRANGE FORECAST TO BE RELEASED TODAY THE FAA SAYS DOMESTIC TRAFFIC IS EXPECTED TO RISE 39 ANNUALLY THROUGH FISCAL 2004 SLIGHTLY LESS THAN THE PREVIOUS FORECAST OF 41 INTERNATIONAL TRAFFIC IS EXPECTED TO RISE AT A 66 RATE THE AGENCY'S FORECAST ASSUMES AMONG OTHER THINGS THAT THE ECONOMIC RECOVERY WON'T FALTER AND THAT THE AIRLINE INDUSTRY WILL CONTINUE TO MOVE TOWARD GREATER CONCENTRATION AMONG A SMALLER NUMBER OF LARGER AIRLINES THEODORE HARRIS A MCLEAN VA AVIATION CONSULTANT SAID HE BELIEVES THE INDUSTRY CAN SURPASS THE PROJECTED 39 ANNUAL GROWTH RATE IN REVENUE PASSENGER MILES IF THE CLINTON ADMINISTRATION AND CONGRESS PROVIDE TAX AND REGULATORY RELIEF AND CURTAIL PREDATORY COMPETITION AMONG CARRIERS OTHERWISE THE FAA FORECAST WILL PROVE OVERLY OPTIMISTIC HE SAYS A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIR TRANSPORT ASSOCIATION ALSO EXPECTS GREATER TRAFFIC GROWTH THAN THE FAA IF THE AIRLINES CAN HOLD DOWN THEIR COSTS AND THUS THEIR PRICES AND IF THE ECONOMY GROWS 3 ANNUALLY WE WOULD LOOK FOR 6 SAID DAVID SWIERENGA CHIEF ECONOMIST FOR THE TRADE GROUP THE FAA FORECAST DOESN'T ADDRESS THE QUESTION OF PROFITS AND LOSSES MR SWIERENGA PROJECTED THAT THE INDUSTRY COULD BREAK EVEN THIS YEAR AND RETURN TO PROFITABILITY NEXT YEAR HE HOPES THE INDUSTRY WILL BE WELL ON THE WAY TO RECOVERY WHEN THE PROPOSED ENERGY TAX TAKES FULL EFFECT IN 1995 A 10CENTAGALLON TAX WOULD COST THE INDUSTRY 15 BILLION A YEAR MR DEL BALZO SAYS THE FAA CAN HELP THE INDUSTRY CUT COSTS BY HARMONIZING ITS REGULATIONS WITH FOREIGN RULES AND BY SPEEDING UP THE MODERNIZATION OF THE NATION'S AIRTRAFFIC CONTROL SYSTEM AIRTRAFFIC DELAYS ADD 3 BILLION A YEAR TO THE INDUSTRY'S OPERATING COSTS WE CAN AND WE MUST DO WHATEVER IS REQUIRED TO HELP THE AVIATION BUSINESS THROUGH THIS PERIOD OF HARDSHIP HE SAID IN PREPARED REMARKS THE FAA ALSO PROJECTS DOMESTIC PASSENGER BOARDINGS WILL RISE 35 ANNUALLY THROUGH FISCAL 2004 AFTER INCREASING ONLY 11 A YEAR ON AVERAGE OVER THE LAST THREE YEARS INTERNATIONAL BOARDINGS ARE EXPECTED TO RISE 66 ANNUALLY IN ADDITION THE AGENCY EXPECTS US AIRLINES TO REVERSE A HISTORIC DECLINE IN THEIR DOMESTIC YIELDS OR AVERAGE PASSENGER REVENUE PER PASSENGER MILE FARES AVERAGED ABOUT 20 CENTS PER PASSENGER MILE IN FISCAL 1970 TODAY THEY'RE ABOUT 125 CENTS THE AGENCY EXPECTS DOMESTIC YIELDS ADJUSTED FOR INFLATION TO INCREASE 24 DURING THE FISCAL YEAR THAT ENDS SEPT 30 FLATTEN OUT FOR THE NEXT TWO YEARS AND THEN RISE 05 ANNUALLY THROUGH FISCAL 2004 INTERNATIONAL YIELDS ARE EXPECTED TO FALL AT AN AVERAGE ANNUAL RATE OF 06 9302260076 930226 TECHNOLOGY BRIEF NORTHERN TELECOM LTD TANDEM COMPUTERS JOINS INTELLIGENTNETWORK PROJECT NORTHERN TELECOM LTD SAID IT WILL TEAM WITH TANDEM COMPUTERS INC TO DEVELOP AND SELL INTELLIGENTNETWORK SYSTEMS ON A GLOBAL BASIS AN INTELLIGENT NETWORK COMBINES TELEPHONE GEAR WITH COMPUTERS TO OFFER CUSTOMERS A WIDE RANGE OF FUNCTIONS BEYOND ORDINARY PHONE SERVICE INCLUDING TOLLFREE CALLING AND COMPANYSPECIFIC PHONE NETWORKS NORTHERN TELECOM A TORONTOBASED SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT SAID ITS NEW OFFERING WILL MARRY ITS OWN TELEPHONESWITCHING SYSTEM TO COMPUTER HARDWARE AND SOFTWARE PROVIDED BY TANDEM CUPERTINO CALIF THE COMPANIES DECLINED TO GIVE ANY ESTIMATES OF POSSIBLE SALES THE WORLDWIDE MARKET FOR INTELLIGENTNETWORK SYSTEMS WILL BE ABOUT 3 BILLION OVER THE NEXT FIVE YEARS ACCORDING TO SOME ANALYSTS 9302260075 930226 RUSSIA'S ECONOMY SHOWS AN APPETITE FOR US FAST FOOD MCDONALD'S PIZZA HUT DO WELL WITH MOSCOW OUTLETS SEE SOLID LONGTERM GROWTH BY BILL ESSIG SPECIAL TO THE WALL STREET JOURNAL WHILE HYPERINFLATION AND POLITICAL UNCERTAINTY HAMPER RUSSIA'S CONVERSION TO A MARKET ECONOMY TWO NORTH AMERICAN FASTFOOD MULTINATIONALS HAVE SUCCESSFULLY BROUGHT HAMBURGERS PIZZA AND WESTERNSTYLE BIG BUSINESS TO MOSCOW IN THE THREE YEARS SINCE HITTING THE MOSCOW MARKET MCDONALD'S CORP'S MCDONALD'S OF CANADA LTD UNIT AND PEPSICO'S PIZZA HUT INTERNATIONAL UNIT HAVE TACKLED SUPPLY PROBLEMS AND BUREAUCRATIC DELAYS TO BUILD THEIR SEPARATE JOINTVENTURE BUSINESSES INTO MULTIMILLION RUBLE OPERATIONS THOUGH SIGNIFICANT HARD CURRENCY PROFITS HAVE YET TO COME OUT OF THESE VENTURES COMPANY OFFICIALS AND MARKET ANALYSTS AGREE MCDONALD'S AND PIZZA HUT ARE MAKING SIGNIFICANT INROADS INTO A MARKET WITH SUBSTANTIAL LONGTERM PROFIT POTENTIAL WE'VE GOT THE BUSIEST RESTAURANT IN THE WORLD AND WE'RE EXPANDING ALL THE TIME SAYS GEORGE COHON SENIOR CHAIRMAN OF MCDONALD'S RESTAURANTS OF CANADA WHO BROUGHT THE FIRST AND STILL THE LARGEST WESTERNSTYLE FAST FOOD OPERATION TO MOSCOW AFTER 14 YEARS OF NEGOTIATIONS WE'D LIKE TO THINK THERE'S SUBSTANTIAL LONGTERM GROWTH OUT THERE SAYS ANDY RAFALAT MANAGING DIRECTOR FOR EASTERN EUROPE AT PIZZA HUT INTERNATIONAL THE SECOND MAJOR WESTERN FASTFOOD PRESENCE IN MOSCOW WE'RE LOOKING TO THE DAY WHEN MORE STABILITY WILL ALLOW US TO SPEED OUR GROWTH RUSSIA WILL TURN OUT TO BE AN EXCELLENT MARKET FOR BOTH CHAINS SAYS RESTAURANT AND FOOD ANALYST CAROLINE LEVY AT SHEARSON LEHMAN BROTHERS IN NEW YORK BUT SHE ADDS THAT SUBSTANTIAL PROFITS COULD BE SEVERAL YEARS AWAY AFTER SEALING A DEAL WITH THE MOSCOW CITY COUNCIL'S FOOD SERVICE ADMINISTRATION MCDONALD'S OPENED ITS FIRST RESTAURANT ON PUSHKIN SQUARE IN 1990 TERMS OF THE JOINT VENTURE 51 HELD BY THE CITY COUNCIL AND 49 HELD BY MCDONALD'S CALLED FOR OPENING 20 RESTAURANTS AND A SUPPLY CENTER MR COHON SAYS MCDONALD'S HAS SPENT ABOUT 75 MILLION SO FAR IN ESTABLISHING ITS SUPPLY CENTER AND NETWORK SETTING UP ITS RESTAURANT WHICH NOW SERVES ALMOST 50000 CUSTOMERS EACH DAY AND PREPARING FOR EXPANSION A LARGE SUPPLY CENTER IN A MOSCOW SUBURB PROCESSES MEAT DAIRY POTATO AND BAKERY PRODUCTS WITH A STAFF OF 400 MUSCOVITES AFTER ENLISTING FARMERS AND SUPPLIERS ACROSS THE COMMONWEALTH OF INDEPENDENT STATES AND TRAINING THEM TO MEET MCDONALD'S STANDARDS THE MOSCOW MCDONALD'S NOW GETS 98 OF ITS SUPPLIES FROM INSIDE THE CIS MR COHON SAYS WE HAVEN'T HAD TO BARGAIN ON QUALITY ONE BIT HE ADDS GROWTH FOR 1993 INCLUDES THE OPENING OF TWO NEW RESTAURANTS IN MOSCOW ONE ON THE GROUND FLOOR OF A 12STORY OFFICE TOWER OWNED BY THE MOSCOW MCDONALD'S JOINT VENTURE THAT WILL INCLUDE OTHER MULTINATIONAL TENANTS SUCH AS AMERICAN EXPRESS CO GROUND BREAKING FOR THREE OR FOUR MORE MOSCOW RESTAURANTS IS ALSO LIKELY IN 1993 AND MR COHON SAYS MCDONALD'S IS EXPLORING ST PETERSBURG UKRAINE AND THE BALTIC STATES INCOME FROM THE OFFICE TOWER WILL BE AMONG THE FIRST HARDCURRENCY REVENUE MCDONALD'S HAS GAINED FROM ITS NOW RUBLEONLY RUSSIAN OPERATIONS WHICH MR COHON SAYS BRING IN ABOUT 24 MILLION RUBLES ABOUT 40000 A DAY ALL WE DO IS SELL FOR RUBLES MR COHON SAYS WE CAME TO THE CONCLUSION THE MARKET IS A RUSSIAN MARKET HE SAID THE COMPANY DIDN'T WANT FOREIGNERBASED RESTAURANTS OR RESTAURANTS THAT EXCLUDED NONWEALTHY RUSSIANS WHILE MR COHON SAYS MCDONALD'S COULD ALREADY BE REPATRIATING PROFITS WITH THE RUSSIAN PERMISSION HE SAYS HE'S PLOWING HIS MOSCOW EARNINGS STRAIGHT BACK INTO THE BUSINESS WE CAN REINVEST OUR PROFIT IN NEW STORES AND DO BETTER HERE SAYS THE CHAIRMAN WHAT COUNTRY DO YOU GO INTO WITH ONE RESTAURANT AND MAKE ANY MONEY IT TAKES SEVERAL YEARS AND SEVERAL RESTAURANTS TWO RESTAURANTS OF PEPSICO'S PIZZA HUT INTERNATIONAL ARE MCDONALD'S FIRST WESTERNBASED COMPETITION IN MOSCOW THIS COMPETITION IS GOOD FOR BOTH OF US AND BETTER FOR THE RUSSIANS SAYS PIZZA HUT'S MR RAFALAT SINCE OPENING THEIR FIRST RESTAURANT IN SEPTEMBER 1990 ALSO IN A 5149 JOINT VENTURE WITH THE MOSCOW CITY COUNCIL'S FOOD SERVICE ARM PIZZA HUT HAS SOLD 15000 MEALS EACH WEEK TO BOTH RUBLE AND DOLLAR CUSTOMERS IN TWO SEPARATE DINING ROOMS SERVED BY A COMMON KITCHEN MR RAFALAT WOULDN'T SPECIFY HOW MUCH REVENUE THE STORES BRING IN MR RAFALAT SAYS THE HARDCURRENCY EARNINGS HAVE HELPED PIZZA HUT RECOUP ITS INITIAL 7 MILLION INVESTMENT AS WELL AS COVER OPERATING EXPENSES INCLUDING IMPORTING MEAT AND DAIRY PRODUCTS FOR ITS PIZZAS MR RAFALAT SAYS LOCAL SUPPLY CONTINUES TO BE SOMEWHAT OF A PROBLEM FOR PIZZA HUT WHICH HASN'T ESTABLISHED A MAJOR PROCESSING CENTER AS MCDONALD'S HAS THE AVAILABILITY AND HIGH COST OF ADEQUATE MEAT AND CHEESE ARE A CONTINUING CONCERN HE SAYS DESPITE THE INITIAL SUCCESS MR RAFALAT SAYS PIZZA HUT IS UNSURE OF ITS RUSSIAN EXPANSION PLANS FOR 1993 IN PART BECAUSE OF THE UNCERTAINTY OVERHANGING THE ENTIRE RUSSIAN ECONOMY WE'D LIKE TO GET MORE RESTAURANTS RUNNING IN '93 AT A COUPLE LOCATIONS IN MOSCOW BUT THERE ARE NO FIRM DATES YET HE SAYS WE'RE TIED INTO THE OVERALL ECONOMY 9302260074 930226 BUSINESS BRIEF LEND LEASE CORP OPERATING PROFIT ROSE 16 IN FIRST HALF ENDED DEC LEND LEASE CORP AN AUSTRALIAN PROPERTY AND FINANCIAL SERVICES COMPANY SAID OPERATING PROFIT ROSE 16 FOR THE FISCAL FIRST HALF TO 1111 MILLION AUSTRALIAN DOLLARS 771 MILLION FROM A1093 MILLION A YEAR EARLIER SALES FOR THE PERIOD ENDED DEC 31 ROSE 58 TO A6113 MILLION FROM A5777 MILLION PRETAX OPERATING PROFIT FELL 52 TO A1672 MILLION FROM A1763 MILLION DIRECTORS SAID RETAIL FINANCIAL SERVICES CONTRIBUTED 67 OF AFTERTAX PROFIT UP FROM 51 A YEAR EARLIER THE CONTRIBUTION FROM PROPERTY SERVICES FELL TO 27 FROM 32 FUNDS UNDER MANAGEMENT ROSE TO A17 BILLION AT DEC 31 FROM A15 BILLION A YEAR EARLIER THE LIFE INSURANCE DIVISION'S PROFIT CONTRIBUTION WAS A61 MILLION FROM MLC LIFE AND A13 MILLION FROM AUSTRALIAN EAGLE LIFE LEND LEASE PREDICTS AN INCREASE IN PROFITS FOR THE CURRENT FISCAL YEAR FOR THE YEAR ENDED JUNE 30 THE COMPANY REPORTED A PROFIT OF A1953 MILLION 9302260073 930226 INTERNATIONAL CLINTON YELTSIN SCHEDULED TO MEET IN APRIL 4 SUMMIT BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA PRESIDENT CLINTON AND BORIS YELTSIN PLAN TO HOLD A SUMMIT MEETING APRIL 4 GIVING THE US A CHANCE TO STRESS ITS SUPPORT FOR THE RUSSIAN PRESIDENT'S EFFORTS TO ADVANCE DEMOCRACY AND THE POSTCOMMUNIST ECONOMY SECRETARY OF STATE WARREN CHRISTOPHER AND RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WHO ANNOUNCED THE MEETING HERE ALSO SAID THEY SOON WOULD SEND INVITATIONS TO ARABS AND ISRAEL TO ATTEND A NEW ROUND OF PEACE TALKS IN WASHINGTON IN APRIL MR CHRISTOPHER ARRIVED HERAFTER A SEVENDAY MIDEAST TRIP DURING WHICH HE TRIED TO RESTART THE TALKS WHICH HAVE BEEN DEADLOCKED SINCE ISRAEL DEPORTED 415 PALESTINIANS IN DECEMBER THE US AND RUSSIA ARE COSPONSORS OF THE NEGOTIATIONS AT YESTERDAY'S MEETING MR KOZYREV OFFERED SUPPORT FOR THE US PLAN TO AIRLIFT HUMANITARIAN SUPPLIES INTO BOSNIA BUT STOPPED SHORT OF SAYING RUSSIA WOULD JOIN THE EFFORT THE TWO DIPLOMATS ALSO DISCUSSED THE MIDDLE EAST HOW THE US COULD AID RUSSIA AND MOSCOW'S INTEREST IN DEVELOPING NEW MARKETS FOR THE SALE OF CONVENTIONAL ARMS AT A NEWS CONFERENCE AFTER THEIR MEETING MR CHRISTOPHER SAID PRESIDENT CLINTON SENT ME TO MEET TODAY TO UNDERSCORE HIS STRONG PERSONAL SUPPORT FOR THE REFORM POLICIES OF THE YELTSIN ADMINISTRATION MR CLINTON IS LIKELY TO USE THE ONEDAY SUMMIT TO DELIVER THE SAME MESSAGE TO THE RUSSIAN LEADER WHO IS UNDER ATTACK FROM HARDLINERS AND OLDLINE COMMUNISTS WHO WANT TO BLOCK HIS ECONOMIC PROGRAM THE SITE OF THE SUMMIT HASN'T BEEN DECIDED NEVERTHELESS MR CLINTON CONSTRAINED BY DOMESTIC PROBLEMS PROBABLY WON'T BE ABLE TO OFFER RUSSIA AS MUCH AID AS IT SEEKS A US OFFICIAL SAID THAT MR CHRISTOPHER REMINDED HIS RUSSIAN COUNTERPART THAT CONGRESS MUST APPROVE FOREIGN AID WHICH HAS SUNK AS A US PRIORITY SINCE THE END OF THE COLD WAR MR KOZYREV NOTING THAT THE TWO NATIONS ARE NOW CONCENTRATING ON THEIR DOMESTIC ECONOMIC SITUATIONS SAID THAT NEVERTHELESS WE BELIEVE THAT COOPERATION AND ASSISTANCE FOR RUSSIAN REFORM IS IN THE AGENDA THE DOMESTIC AGENDA OF THE TWO COUNTRIES MR KOZYREV ASKED FOR US SUPPORT AS RUSSIA CONTINUES NEGOTIATIONS WITH WESTERN CREDITOR NATIONS TO RESCHEDULE ITS DEBT WHICH TOTALS ABOUT 75 BILLION THE FOREIGN MINISTER ALSO ARGUED THAT HIS NATION NEEDS TO USE ITS HIGHLY DEVELOPED ARMAMENTS INDUSTRY TO RAISE BADLY NEEDED CASH THE US IS TRYING TO DISSUADE MOSCOW FROM SELLING ARMS TO SUCH NATIONS AS LIBYA AND IRAN WHICH VIOLATE INTERNATIONAL ANTIPROLIFERATION AGREEMENTS MR KOZYREV SAID WHAT MR CHRISTOPHER WANTED TO HEAR IN SEEKING OUR ARMS MARKET THE MOST IMPORTANT ISSUE IS TO CHOOSE APPROPRIATE CLIENTS WHEN MR CHRISTOPHER LEFT THE MIDDLE EAST HE INDICATED THAT THERE STILL WERE OBSTACLES IN THE PATH OF RESUMING PEACE TALKS BUT AFTER FURTHER CONTACTS WITH SOME OF THE PARTIES WEDNESDAY NIGHT AND EARLY YESTERDAY MORNING MR CHRISTOPHER SAID THAT WE FELT CONFIDENT ABOUT THE SITUATION AND WITH MR KOZYREV'S AGREEMENT DECIDED TO PUSH THE PROCESS FORWARD BY SAYING INVITATIONS WILL BE SENT OUT ARABS WERE EAGER TO RESUME TALKS BUT INSISTED THAT MR CHRISTOPHER NEEDED TO GET ISRAEL TO GO BEYOND A COMPROMISE PLAN UNDER WHICH THE DEPORTEES WOULD BE RETURNED OVER THE COURSE OF A YEAR MR CHRISTOPHER WHO SAID HE WOULDN'T PRESSURE ISRAEL APPEARS TO BE ON THE WAY TO RESOLVING THE PROBLEM WITH THE PROMISE OF MORE ACTIVE US INVOLVEMENT IN THE PEACE PROCESS ONCE TALKS RESUME 9302260072 930226 NEW YORK STATE PLAN FOR HOSPITAL PAYMENT IS UPHELD BY COURT ALBANY NY AP A STATE COURT UPHELD A MAJOR PORTION OF NEW YORK'S SYSTEM OF CONTROLLING ITS REIMBURSEMENTS TO HOSPITALS REVERSING A LOWER COURT RULING THE APPELLATE DIVISION OF STATE SUPREME COURT RULED AGAINST THE NEW YORK UNIVERSITY MEDICAL CENTER AND OTHER HOSPITALS THAT SUED OVER HOW THE STATE CAPPED REIMBURSEMENT RATES FOR NONMEDICARE PATIENT CARE A STATE HEALTH DEPARTMENT SPOKESWOMAN SAID THE APPELLATE RULING COULD SAVE NEW YORK AND INSURERS MILLIONS OF DOLLARS ANNUALLY OFFICIALS OF THE NYU MEDICAL CENTER COULDN'T BE REACHED TO SAY WHETHER THEY PLANNED AN APPEAL TO THE COURT OF APPEALS NEW YORK'S HIGHEST COURT NEW YORK CURRENTLY REIMBURSES HOSPITALS A SPECIFIC AMOUNT OF MONEY FOR EACH PATIENT BASED ON THEIR DIAGNOSES AND THE TREATMENT REQUIRED HOSPITALS MUST ASSIGN EACH PATIENT A SPECIFIC NUMBER ON A DIAGNOSISRELATED GROUP SCALE DEPENDING ON THE SEVERITY OF THE ILLNESS THE STATE ANNUALLY CAPS THE AMOUNT HOSPITALS STATEWIDE CAN INCREASE REIMBURSEMENT CHARGES IF HOSPITALS EXCEED THAT CAP THE STATE WILL REVIEW RECORDS OF INDIVIDUAL HOSPITALS AND CAN ALSO ASSESS A CHARGE ON HOSPITALS STATEWIDE TO RECOUP THE DIFFERENCE THE HOSPITALS DISPUTED THE RATIONALE OF THE CAPS AND THE WAY THE STATE RECOUPED THE REIMBURSEMENT FUNDS 9302260071 930226 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC FOURTHPERIOD NET ROSE 11 TO HIGHEND OF EXPECTATION DUTY FREE INTERNATIONAL INC RIDGEFIELD CONN REPORTED AN 11 PROFIT INCREASE FOR THE FISCAL FOURTH QUARTER A PERFORMANCE THAT WAS AT THE HIGH END OF A REDUCED FORECAST THE COMPANY AN OPERATOR OF DUTYFREE GOODS STORES SAID EARNINGS FOR THE QUARTER ENDED JAN 31 TOTALED 6 MILLION OR 22 CENTS A SHARE COMPARED WITH 54 MILLION OR 20 CENTS A SHARE THE YEAR BEFORE SALES SLIPPED TO 859 MILLION FROM 864 MILLION DUTY FREE'S SHARES CLOSED YESTERDAY AT 21625 UP 75 CENTS ON THE NEW YORK STOCK EXCHANGE IN DECEMBER THE COMPANY'S SHARES DROPPED STEEPLY AFTER DUTY FREE SAID FOURTHQUARTER EARNINGS WOULD BE BETWEEN 5 MILLION AND 62 MILLION BELOW PREVIOUS EXPECTATIONS BECAUSE OF SHARPLY LOWER SALES AT ITS NORTHERN BORDER DIVISION FOR THE YEAR DUTY FREE POSTED NET INCOME OF 304 MILLION OR 108 A SHARE AFTER EXPENSES OF 44 MILLION OR 16 CENTS A SHARE FROM A MERGER WITH UETA INC IN THE PREVIOUS YEAR THE COMPANY EARNED 314 MILLION OR 119 A SHARE SALES ROSE TO 3618 MILLION FROM 3466 MILLION 9302260070 930226 ABREAST OF THE MARKET INDUSTRIALS ADVANCE 864 POINTS EVEN AS DRUG TOBACCO ISSUES FALL BY ANITA RAGHAVAN AND VITO RACANELLI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS MUSTERED A MODEST GAIN EVEN AS INVESTORS RESUMED THEIR ASSAULT ON DRUG AND TOBACCO ISSUES ANALYSTS SAID THE RISE IN THE DOW JONES INDUSTRIALS WAS ACHIEVED LARGELY BY GAINS OF A POINT OR MORE IN A FEW STOCKS INTERNATIONAL BUSINESS MACHINES ROSE 1 7/8 TO 53 3/4 WHILE EASTMAN KODAK JUMPED 2 5/8 TO 53 ON REPORTS OF THE NEW CHIEF FINANCIAL OFFICER'S BUSINESS PLANS IT'S A HIGHLY SELECTIVE ERRATIC AND FRAGMENTED MARKET SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER I THINK THE THEME IS GRAB A PROFIT IF YOU CAN BUT DON'T OVERSTAY YOUR VISIT MR METZ SAID THAT INVESTORS ARE VERY SKITTISH AFTER A DISAPPOINTING FIRSTQUARTER EARNINGS FORECAST LATE WEDNESDAY BY AMGEN A BIOTECHNOLOGY COMPANY WHOSE STOCK IS TRADED ON NASDAQ MANY MONEY MANAGERS FEEL THAT THE MARKET IS TOO ACCIDENT PRONE HE SAID INSTEAD OF TAKING LONGTERM POSITIONS IN STOCKS MR METZ SAID THESE FUND MANAGERS ARE SIMPLY JUMPING IN AND OUT FROM STOCK TO STOCK VOLUME ON THE BIG BOARD TOTALED 252790000 SHARES DOWN FROM WEDNESDAY'S 298860000 ADVANCING ISSUES OUTNUMBERED DECLINERS 1056 TO 817 TRADING IN BIG BOARD STOCKS WAS FEATURELESS FOR MOST OF THE DAY EXCEPT FOR A BRIEF PERIOD BEFORE 1 PM EST WHEN THE DOW JONES INDUSTRIALS JUMPED 8 POINTS BUT THAT TURNED OUT TO BE BASED ON AN ERRONEOUSLY RECORDED TRADE WHICH WAS QUICKLY CANCELED ACCORDING TO NEW YORK STOCK EXCHANGE OFFICIALS AT 1251 PM SOMEONE ON THE FLOOR OF THE NEW YORK STOCK EXCHANGE ENTERED INTO THE SYSTEM A TRADE OF 1000 SHARES OF PHILIP MORRIS AT 69 5/8 UP 4 FROM THE PREVIOUS TRADE THE CLERICAL ERROR WAS CAUGHT QUICKLY BUT NOT BEFORE IT HAD FLASHED THROUGH COMPUTERS AND PRODUCING A SHARP SPIKE ON REAL TIME CHARTS OF THE INDUSTRIAL AVERAGE CONCERNING THE ENTIRE MARKET DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID THE CLINTON TAX PLAN HAS CHANGED THE PSYCHOLOGY OF STOCK TRADERS UNTIL THERE ARE SIGNS THAT THE CLINTON ADMINISTRATION WILL OFFER A PLAN THAT RELIES MORE HEAVILY ON SPENDING CUTS MR SHULMAN SAID HE EXPECTS TO THE DOW JONES INDUSTRIALS TO TREND BETWEEN 3300 AND 3400 AND THE S&P 500 TO BE CONFINED TO A RANGE OF 430 TO 450 INVESTORS RENEWED THEIR ATTACK ON DRUG STOCKS AFTER REP HENRY WAXMAN D CALIF SAID A RECENT GOVERNMENT STUDY SHOWS THERE'S A LOT OF ROOM TO REDUCE DRUG PRICES WITHOUT HURTING THE PROFITABILITY OF DRUG MAKERS WARNERLAMBERT STUMBLED 1 3/8 TO 64 1/2 JOHNSON & JOHNSON SLIPPED 5/8 TO 41 5/8 AND SYNTEX LOST 5/8 TO 18 3/4 PFIZER SLID 5/8 TO 57 1/8 EVEN THOUGH THE DRUG COMPANY SAID ITS BOARD APPROVED THE BUYBACK OF AS MANY AS 20 MILLION SHARES IN THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS TOBACCO STOCKS FELL ON JITTERS ABOUT THE RUMORS THAT PRESIDENT CLINTON PLANS TO SEEK TAXES ON TOBACCO TO PAY FOR HEALTHCARE REFORM PHILIP MORRIS WAS THE SECONDMOST ACTIVELY TRADED STOCK ON THE BIG BOARD DROPPING 5/8 TO 65 5/8 RJR NABISCO EDGED 1/4 POINT LOWER TO 8 1/8 AND AMERICAN BRANDS FELL 3/8 TO 34 1/8 EASTMAN KODAK JUMPED 2 5/8 TO 53 CHRISTOPHER STEFFEN THE COMPANY'S NEW CHIEF FINANCIAL OFFICER SAID HE EXPECTS TO HAVE A BUSINESS PLAN READY IN ABOUT SIX MONTHS THE PLAN WILL OUTLINE THE PROGRAMS THE COMPANY INTENDS TO EMBARK ON TO REDUCE ITS 89 BILLION DEBT LOAD AND BOOST PROFITS MR STEFFEN WHOSE HIRING SPARKED A 10 RISE IN THE COMPANY'S STOCK LAST MONTH TOLD DOW JONES PROFESSIONAL INVESTOR REPORT THAT HE WANTS TO CUT THE COMPANY'S DEBTTOCAPITALIZATION RATIO TO 30 TO 40 FROM THE CURRENT 59 LEVEL HE DIDN'T SAY WHEN HE EXPECTS TO ACHIEVE THIS GOAL MR STEFFEN SAID HE WON'T RULE OUT ASSET SALES WHICH WALL STREET ANALYSTS HAVE BEEN CLAMORING FOR AIRLINE STOCKS SOARED IN RESPONSE TO A JUSTICE DEPARTMENT PRICEFIXING LAWSUIT AIRLINES ARE RELUCTANTLY CURTAILING INFORMATION ABOUT AIR FARES THE MOVE COULD INCREASE TICKET PRICES BUT WALL STREET GREETED THE NEWS WARMLY AMR THE PARENT COMPANY OF AMERICAN AIRLINES SURGED 3 3/8 TO 60 3/4 UAL THE PARENT OF UNITED AIRLINES ZOOMED 5 1/4 TO 119 1/4 AND DELTA AIR LINES ADVANCED 2 1/4 TO 50 3/8 DIGITAL EQUIPMENT ADDED 1 3/8 TO 48 1/4 THE COMPUTER MAKER SAID IT WILL CLOSE ITS HARDWARE MANUFACTURING PLANT IN GALWAY IRELAND WHERE IT HAS ABOUT 780 EMPLOYEES MANUFACTURED HOMES COMMUNITIES WAS THE THIRDMOST ACTIVELY TRADED STOCK ON THE BIG BOARD THE REAL ESTATE INVESTMENT TRUST SOLD 44 MILLION SHARES LATE WEDNESDAY AT 2575 EACH IN AN INITIAL PUBLIC OFFERING BROUGHT THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE STOCK CLOSED UP 2 1/4 AT 28 DUTY FREE INTERNATIONAL CHALKED UP 3/4 TO 21 5/8 THE COMPANY WHICH OPERATES DUTYFREE RETAIL STORES SAID FOURTHQUARTER PROFIT INCREASED TO 6 MILLION OR 22 CENTS A SHARE FROM 54 MILLION OR 20 CENTS A SHARE A YEAR EARLIER OFFICE DEPOT GAINED 3/4 TO 30 1/8 MERRILL LYNCH ANALYST FRAN BERNSTEIN RAISED HER SHORTTERM INVESTMENT RATING OF THE COMPANY TO ABOVE AVERAGE FROM NEUTRAL MS BERNSTEIN'S LONGTERM RATING ON THE COMPANY REMAINS BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 202 TO 40543 THERE WERE 303 ADVANCERS AND 245 DECLINERS 9302260069 930226 BUSINESS BRIEF NOBEL INSURANCE LTD FIRM'S BOARD REJECTS BID FOR A STAKE IN US ASSETS NOBEL INSURANCE LTD SAID ITS BOARD REJECTED A PROPOSAL FROM A GROUP THAT WANTED TO ACQUIRE A SIGNIFICANT PART OF THE COMPANY'S US ASSETS IN A NEWS RELEASE ISSUED AFTER THE CLOSE OF TRADING THE COMPANY IN HAMILTON BERMUDA SAID IT IS UNCERTAIN WHETHER THE GROUP WHICH THE COMPANY HASN'T IDENTIFIED WILL MAKE ANOTHER BID THE COMPANY DIDN'T DISCLOSE THE TERMS OF THE PROPOSAL AND COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT THE COMPANY ALSO SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF 14 MILLION COMPARED WITH 54 MILLION A YEAR EARLIER AND 1992 NET INCOME IN EXCESS OF 187 MILLION UP FROM 89 MILLION IN 1991 THE COMPANY DIDN'T PROVIDE PERSHARE OR REVENUE FIGURES NOBEL WHICH PROVIDES INSURANCE FOR THE EXPLOSIVES INDUSTRY ATTRIBUTED THE PROFIT INCREASE TO A REDUCTION IN CLAIMS RESERVES FROM 1991 9302260068 930226 REVIEW & OUTLOOK EDITORIAL PARTY ANIMALS NO ONE SHOULD ASSUME THAT THE POLITICAL PATTERNS WE SEE IN EUROPE TODAY WILL LAST INTO THE NEXT CENTURY WHAT WE'RE SEEING IN ITALY IS THE SLOWMOTION DESTRUCTION OF THE OLD POLITICAL ORDER ITALY IS THE WESTERN NATION WHERE THE POLITICIZATION OF SOCIETY IS THE MOST ENDEMIC SO POLITICAL PARTIES ARE UNRAVELING THERE FIRST BUT OTHER NATIONS MAY SEE A PARALLEL PHENOMENON IN FRANCE LAST WEEK THE FORMER SOCIALIST PRIME MINISTER MICHEL ROCARD CALLED FOR A POLITICAL BIG BANG THAT WOULD RESTRUCTURE THE FRENCH LEFT THE LEFTWING DAILY LIBERATION CALLED IT THE FUNERAL ORATION OF THE SOCIALISTS IN BRITAIN LABOR PARTY LEADER JOHN SMITH HAS CONTINUED FUNDAMENTAL CHANGES HIS PARTY IS SET TO DIVORCE ITSELF FROM THE UNIONS A STRICTLY GOVERNMENTAL LABOR PARTY WILL BE MORE FLEXIBLE UNION ACTIVITIES WILL STINK LESS FROM THE AROMA OF PARTY POLITICS IN SHORT IT SEEMS TO US THAT THE NATURE OF EUROPEAN POLITICAL PARTIES IS CHANGING THE MODEL OF THE PARTY AS A PERVASIVE SOCIAL INFLUENCE IS DISCREDITED THE COLLAPSE OF THE SOVIET UNION REPRESENTED THIS CHANGE ON A GRAND SCALE IT WAS THE COMMUNIST PARTY A POLITICAL ORGANIZATION THAT TRIED TO INFILTRATE EVERY SPHERE OF LIFE THAT DISINTEGRATED IN WESTERN EUROPE IT WAS ITALY THAT SAW THE GREATEST POLITICIZATION OF EVERYDAY LIFE NOT ONLY WERE JOBS THROUGHOUT THE ECONOMY ALLOCATED ON THE BASIS OF PARTY AFFILIATION BUT AS RECENT REVELATIONS MAKE CLEAR SO WAS BRIBE MONEY CORRUPTION WAS NOT MERELY THE LUBRICANT FOR PARTY ACTIVITY IT WAS THE VERY PURPOSE OF PARTY POLICY CORRUPTION ON THE SCALE PRACTICED IN ITALY IS BUILT INTO THE NATURE OF POLITICIZED ORGANIZATIONS THE GOVERNMENT OF GIULIANO AMATO IS BEGINNING TO DEPOLITICIZE THE COUNTRY MR AMATO IS PUSHING FOR PRIVATIZATIONS AFTER LAST WEEKEND'S CABINET RESHUFFLE 10 MEMBERS OF HIS 25MEMBER CABINET HAVE LOOSE POLITICAL AFFILIATIONS THESE ARE THE TECHNOCRATS THEY ARE MORE EXPERT IN THE MACHINERY OF THE GLOBAL ECONOMY THAN IN THE POLITICAL MACHINERY THAT HAS RECENTLY DOMINATED ITALY MANY HAVE STUDIED IN TECHNOCRATIC TRAINING GROUNDS ABROAD THE NEW MINISTER IN CHARGE OF PRIVATIZATION PAOLO BARATTA DID HIS MASTER'S AT THE LONDON SCHOOL OF ECONOMICS MR AMATO HIMSELF WAS A FELLOW AT THE BROOKINGS INSTITUTION WE WILL BE THE FIRST TO POINT OUT THAT TECHNOCRATS BRING THEIR OWN SHORTCOMINGS TO OFFICE SOMETIMES PARTY HACKS HAVE BETTER KNOWLEDGE OF CONDITIONS IN THE NEIGHBORHOODS BUT POLITICAL PARTY MACHINES SEEM TO BE COLLAPSING WHEN THEY ARE TOO SLOW AND TOO INSULAR THE CENTRAL LESSON HERE HAS TO DO WITH THE GLOBALIZATION OF INFORMATION IN THE PAST THESE HERMETICALLY SEALED NATIONS AND PARTIES IN BOTH THE FREE AND UNFREE WORLDS MANAGED TO AT LEAST KEEP THE ENGINES OF COMMERCE TURNING OVER THOUGH OFTEN WITH NO MORE RELIABILITY THAN A TRABANT EAST GERMANY'S FAMOUS COMPRESSEDCARDBOARD AUTOMOBILE BUT AS THE WORLD HAS OPENED UP THROUGH TRADE AND TELEVISION THE SEALS HAVE BEEN BROKEN SHOWING PEOPLE JUST HOW EMBARRASSINGLY AWFUL ARE THE EFFECTS OF THEIR CORRUPTED POLITICIZED ECONOMIES ITALY IS AMONG THE MOST FORCEFUL IN ADDRESSING ITS PROBLEMS BOTH FOR SURVIVAL AND FOR REASONS OF PRIDE ITALIAN FILMMAKERS USED TO MAKE FARCES ABOUT THE COUNTRY'S POLITICS AND ITALIANS LAUGHED BUT WHEN THE WHOLE WORLD BEGAN LAUGHING AT ITALY'S MAFIAS AND POLITICS IT WASN'T SO FUNNY THAT WHICH PEOPLE TOLERATED FOR SO LONG SUDDENLY BECOMES INTOLERABLE THE RETHINKING AMONG THE PARTIES AND PEOPLES OF THESE NATIONS DOES NOT SUGGEST THAT UTOPIA IS AT HAND BUT IT IS INCREASINGLY EVIDENT THAT NATIONS CANNOT HIDE FROM GLOBALIZATION AND THEY CERTAINLY CANNOT RUN 9302260067 930226 BUSINESS BRIEF SKF AB COMPANY SCRAPS ITS DIVIDEND FOR FIRST TIME IN 70 YEARS SWEDEN'S SKF AB A MAJOR INTERNATIONAL MAKER OF BALL BEARINGS SAID IT WILL SCRAP ITS DIVIDEND FOR THE FIRST TIME IN ITS 70YEAR HISTORY THE MOVE COMES AFTER INCURRING A 1992 LOSS AFTER FINANCIAL ITEMS OF 178 BILLION KRONOR 226 MILLION WIDENING FROM A 221 MILLIONKRONA LOSS THE YEAR EARLIER RESULTS WERE BURDENED BY A CHARGE OF 11 BILLION KRONOR TO COVER COSTS RELATED TO RATIONALIZATION MEASURES THE RECESSION WHICH STARTED IN 1990 CONTINUED AND DEEPENED IN 1992 FOR SKF THIS TREND MEANT THAT EFFORTS TO ADAPT THE GROUP'S OPERATIONS TO THE DECLINING DEMAND WERE CONTINUED AND ASSIGNED HIGH PRIORITY THE COMPANY SAID THE COMPANY EXPECTS TO CUT STAFF BY 5000 PEOPLE OVER THE NEXT TWO YEARS BRINGING TOTAL LAYOFFS TO 15000 SINCE THE START OF RESTRUCTURING MEASURES IN 1990 9302260066 930226 INTERNATIONAL BRIEF ASAHI GLASS CO CONSOLIDATED PRETAX PROFIT PLUNGED 29 DURING 1992 ASAHI GLASS CO SAID ITS CONSOLIDATED OR GROUP 1992 PRETAX PROFIT PLUMMETED 29 TO 4488 BILLION YEN 382 MILLION SALES EDGED UP 55 FROM 1991 TO 1317 TRILLION YEN THE JAPANESE GLASS COMPANY SAID COSTCUTTING EFFORTS AND NEW PRODUCTS SHOULD BOOST SALES AND REVENUES THIS YEAR EVEN THOUGH BUSINESS CONDITIONS ARE EXPECTED TO REMAIN SEVERE THE COMPANY PREDICTS GROUP PRETAX PROFIT WILL COME TO 48 BILLION YEN UP 69 NET INCOME IS SEEN RISING 30 TO 2500 BILLION YEN WHILE SALES ARE SEEN UP 18 TO 1340 TRILLION YEN FOR 1992 THE COMPANY BLAMED SOFTENING MARKET PRICES FOR CHEMICALS AS ONE FACTOR DEPRESSING PROFIT IN ADDITION DEPRECIATION EXPENSES FOR MASSIVE CAPITAL OUTLAYS ON PLANT AND EQUIPMENT IN PAST YEARS CUT INTO THE COMPANY'S PROFIT A SPOKESMAN SAID DEMAND FOR GLASS PRODUCTS FROM MAJOR CLIENTS SUCH AS AUTO MAKERS AND HOUSEHOLD ELECTRIC APPLIANCE MAKERS WAS SLUGGISH LAST YEAR HOWEVER THE COMPANY'S OVERSEAS BUSINESS PERFORMANCE WAS FAVORABLE IN SUCH REGIONS AS SOUTHEAST ASIA WHERE DEMAND FOR GLASS PRODUCTS IS MOUNTING AMID THAT REGION'S STRONG ECONOMIC EXPANSION 9302260065 930226 BUSINESS BRIEF OREGON STEEL MILLS INC FIRM POSTS 4THPERIOD LOSS CITES DELAY IN SHIPPING OREGON STEEL MILLS INC CITING A DELAYED STEEL PIPE SHIPMENT POSTED A FOURTHQUARTER LOSS OF 48 MILLION OR 25 CENTS A SHARE INCLUDING A 5 MILLION ONETIME CHARGE FOR SETTLEMENT OF LITIGATION SALES FOR THE PERIOD WERE 554 MILLION IT WAS THE COMPANY'S FIRST QUARTERLY LOSS SINCE IT WENT PUBLIC IN FEBRUARY 1988 SAID RAY ADAMS VICE PRESIDENT FOR FINANCE IN THE YEARAGO QUARTER THE PORTLAND ORE COMPANY HAD NET INCOME OF 51 MILLION OR 27 CENTS A SHARE ON SALES OF 1082 MILLION OREGON STEEL HAD AN OPERATING LOSS OF 496000 IN THE QUARTER BECAUSE OF A DELAY IN SHIPPING 39400 TONS OF STEEL PIPE PRODUCED UNDER CONTRACT THE SHIPMENT REPRESENTS 365 MILLION IN REVENUE AND OPERATING PROFIT OF 6 MILLION THE COMPANY SAID THE 5 MILLION CHARGE OR 26 CENTS A SHARE WAS FOR SETTLEMENT OF SUITS BROUGHT BY SOME FORMER EMPLOYEES WHO SOLD THEIR SHARES BACK TO THE COMPANY BEFORE IT WENT PUBLIC AND THE STOCK PRICE ROSE 9302260064 930226 GOP PROPOSAL WOULD ACCEPT NEW TAXES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE REPUBLICANS PROPOSED TO RESTRUCTURE PRESIDENT CLINTON'S FIVEYEAR BUDGET IN A WAY THAT WOULD SEVERELY RESTRAIN DOMESTIC SPENDING BUT WOULD STILL NEED MORE THAN 55 BILLION IN NEW TAXES TO MEET THE SAME DEFICIT TARGETS THE PLAN OUTLINED BY TEXAS SEN PHIL GRAMM TAKES AIM AT THE LARGE SPENDING INCREASES BUILT INTO MR CLINTON'S PLAN BUT ALSO DEMONSTRATES THE GOP'S DIFFICULTY IN AVOIDING TAXES AS A MEANS OF ADDRESSING THE DEFICIT THE PROPOSED 226 BILLION IN REDUCTIONS WOULD WIPE OUT ALMOST ALL OF THE NEW DOMESTIC SPENDING INITIATIVES PROPOSED BY THE PRESIDENT AND WOULD DEMAND AN ADDITIONAL 48 BILLION IN STILL UNSPECIFIED CUTS FROM FUTURE APPROPRIATIONS BILLS THE ADDED SAVINGS WOULD BE USED TO ELIMINATE THE HIGHPROFILE INCOME AND ENERGY TAX PROPOSALS IN THE CLINTON PLAN BUT WOULD STOP SHORT OF CANCELING ALL NEW REVENUES FROM HIGHER CORPORATE TAXES AND CUTS IN DEDUCTIONS THE PLAN TAKES THE FORM OF A PROPOSED AMENDMENT TO THE BUDGET RESOLUTION DUE BEFORE CONGRESS NEXT MONTH THOUGH IT MAY WELL FAIL IT COULD FORCE THE DEMOCRATS TO MOVE TOWARD THE RIGHT TO HOLD ONTO THEIR SOUTHERN CONSERVATIVES MR GRAMM WHO HAS THE BACKING OF LEADING CONSERVATIVES IN THE HOUSE AND SENATE INSISTED THAT HE ISN'T IMPLICITLY ENDORSING NEW TAXES BUT HIS PROPOSAL ESTABLISHES A FRAMEWORK IN WHICH THE DEBATE IS EXPECTED TO TURN ON JUST SUCH TRADEOFFS BETWEEN NEW TAXES AND SPENDING CUTS BEGINNING WITH A PROPOSED ECONOMIC STIMULUS BILL PENDING NOW IN THE HOUSE THE ADMINISTRATION'S LONGRANGE BUDGET PROJECTS AN ESTIMATED 161 BILLION IN NEW SPENDING INITIATIVES TO EXPAND NUTRITION AND EDUCATION PROGRAMS FOR POOR CHILDREN FOR EXAMPLE AND ACCELERATE FEDERALLY FUNDED RESEARCH ANOTHER 161 BILLION IS EXPECTED TO BE DISTRIBUTED TO POOR WORKINGCLASS FAMILIES UNDER AN EXPANDED EARNEDINCOME TAX CREDIT PROPOSED BY THE PRESIDENT TOGETHER THESE EXPENDITURES TOTAL 178 BILLION THROUGH FISCAL 1998 CANCELING ALL OF THESE INCREASES WHICH WOULD BENEFIT SUCH POPULAR PROGRAMS AS VETERANS' MEDICAL CARE THE HEAD START PROGRAM FOR PRESCHOOL CHILDREN AND THE NATIONAL SCIENCE FOUNDATION IS SURE TO BE DIFFICULT EVEN FOR MODERATE REPUBLICANS MR GRAMM SAID HE WAS CONFIDENT HE WOULD HAVE THE SUPPORT OF MINORITY LEADER ROBERT DOLE OF KANSAS BUT SPEAKING OF THE SAME 178 BILLION IN PROGRAMS YESTERDAY MR DOLE SPOKE ONLY OF CUTTING 100 BILLION AS A START TOWARD TRIMMING THE TAX INCREASES IN MR CLINTON'S PLAN THE MORE CONSERVATIVE APPROACH RELIES AS WELL ON FINDING AN ADDITIONAL 48 BILLION IN SAVINGS FROM FUTURE APPROPRIATIONS BILLS BY FORCING THE ADMINISTRATION TO COME BACK CLOSER TO THE SPENDING GUIDELINES SET IN THE 1990 BUDGET AGREEMENT THE 178 BILLION IN INITIATIVES AND TAX BENEFITS PROPOSED BY MR CLINTON COMES ON TOP OF A SET OF SPENDING ASSUMPTIONS THAT ALREADY EXCEEDED THE CAPS AGREED TO IN 1990 BY CONGRESS AND THE BUSH ADMINISTRATION CONSERVATIVES ARE FURIOUS THAT THIS BARGAIN WILL NOW BE LOST BUT CLOSING THE GAP WOULD REQUIRE A FREEZE ON TOTAL APPROPRIATIONS FOR THE NEXT TWO YEARS ACCORDING TO AN ANALYSIS BY THE CONGRESSIONAL BUDGET OFFICE JUST TO GIVE DOMESTIC AND INTERNATIONAL AID PROGRAMS ENOUGH MONEY TO KEEP PACE WITH INFLATION COULD MEAN CUTTING THE MILITARY BUDGET EVEN DEEPER THAN MR CLINTON HAS PROPOSED THEY WANT TO DENY EVERYTHING TO GET THE ECONOMY GOING HOUSE MAJORITY LEADER RICHARD GEPHARDT SAID OF THE CONSERVATIVE POSITION AND THEY WANT TO PROTECT THE WEALTHIEST REPUBLICANS ARE AT A DISADVANTAGE TOO BECAUSE THEY ARE STILL GROPING TO UNDERSTAND THE UNDERLYING ASSUMPTIONS IN MR CLINTON'S PLAN AS A RESULT MR GRAMM WAS UNABLE TO PROVIDE ANNUAL BUDGET TOTALS FOR WHAT SPENDING WOULD BE PERMITTED UNDER HIS AMENDMENT AND FIGURES PROVIDED BY THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET LAST NIGHT INDICATE THE TEXAN MAY HAVE TRIPPED UP BY OVERSTATING THE DISCREPANCY BETWEEN THE SPENDING ASSUMPTIONS USED BY THE PRESIDENT AND THE CAPS SET IN THE 1990 LAW AS A RESULT HIS 48 BILLION IN UNSPECIFIED SAVINGS WOULD BE THAT MUCH HARDER TO ACHIEVE AND COULD REQUIRE MORE TAXES OR CUT FAR BELOW THE SPENDING LEVELS ASSUMED IN THE 1990 BUDGET AGREEMENT BY JUMPING AHEAD AS HE DID YESTERDAY MR GRAMM IS SURE TO HAVE ANGERED MORESENIOR REPUBLICANS BUT THE FAST PACE OF THE BUDGET DEBATE THIS YEAR ALSO HAS HURT THE ADMINISTRATION WITH MODERATES IT MAY HOPE TO WIN OVER ALTHOUGH THE ANNUAL BUDGET RESOLUTION REPRESENTS ONLY A GENERAL BLUEPRINT THAT DEPENDS ON LATER ACTION TO IMPLEMENT ACTUAL SPENDING AND TAX PROVISIONS THERE WAS A RISING CHORUS OF COMPLAINTS FROM REPUBLICANS YESTERDAY THAT THEY MAY BE ASKED TO VOTE NEXT MONTH BEFORE THE FINAL DETAILS OF THE PRESIDENT'S PLAN ARE SENT TO CONGRESS WE THINK IN FAIRNESS WE HAVE A RIGHT TO SEE THAT SAID MR DOLE WHO IS A MASTER OF PARTISAN MANEUVERING BUT CHASTISED THE WHITE HOUSE FOR BEING TOO POLITICAL ITSELF THEY OUGHT TO CALM DOWN GO OFF FOR THE WEEKEND HAVE A DIET COKE HE SAID IN RESPONSE TO CRITICISMS FROM THE PRESIDENT'S COMMUNICATIONS ADVISERS THE CAMPAIGN IS OVER THIS ISN'T SUPER TUESDAY WE'RE DEALING WITH DEFICIT REDUCTION THE PRESIDENT'S WIFE HILLARY IS TO MEET WITH SENATE REPUBLICANS TODAY AT A RETREAT IN MARYLAND TO DISCUSS HEALTHCARE LEGISLATION AND MR CLINTON HIMSELF IS SLATED TO COME TO THE CAPITOL NEXT WEEK TO SEE THE SENATE GOP CAUCUS THE WHITE HOUSE'S BEST HOPE OF GOP SUPPORT REMAINS THE PARTY'S MOREMODERATE NORTHERN WING REP SHERWOOD BOEHLERT OF UPPER NEW YORK STATE HAS EXPRESSED ADMIRATION FOR MAJOR PORTIONS OF MR CLINTON'S ECONOMIC PLAN AND RHODE ISLAND SEN JOHN CHAFEE YESTERDAY SAID HE WASN'T SHOCKED OR DISCOMFORTED BY MANY OF THE INCOME TAX PROPOSALS THAT SO RANKLE CONSERVATIVES LIKE MR GRAMM AT THE SAME TIME MR CHAFEE IDENTIFIES WITH AN OLDER SET OF REPUBLICANS INCLUDING MR DOLE WHO HAVE A GENUINE RECORD OF TRYING TO CUT DEFICITS IN THE PAST AND NOW RESENT THE PRESSURE FROM DEMOCRATS MANY OF WHOM DIDN'T BACK THOSE EFFORTS IN THE MID1980S WE'VE GOT TO SEE THIS DOGGONE THING LAID OUT SAID MR CHAFEE I DON'T SHARE THE SENSE OF URGENCY OF THE ADMINISTRATION 9302260063 930226 BUSINESS BRIEF HAWTHORNE FINANCIAL CORP NET TO BE RESTATED AS LOSS FOR 3RD PERIOD STOCK DROPS HAWTHORNE FINANCIAL CORP'S SHARES PLUNGED NEARLY 28 OR 550 TO 1450 IN NATIONAL OVERTHECOUNTER TRADING AFTER THE COMPANY SAID IT MUST RESTATE ITS THIRDQUARTER EARNINGS TO A LOSS OF ABOUT 50 MILLION BEFORE TAX BENEFITS HAWTHORNE ORIGINALLY REPORTED THIRDQUARTER NET INCOME OF 15 MILLION OR 57 CENTS A SHARE IN LATE OCTOBER HAWTHORNE SAID THE MOVE REFLECTS A REQUIREMENT BY THE OFFICE OF THRIFT SUPERVISION THAT THE HOLDING COMPANY'S MAIN UNIT HAWTHORNE SAVINGS & LOAN ASSOCIATION INCREASE ITS LOSS RESERVES BY ABOUT 54 MILLION JERRO OTSUKI CORPORATE SECRETARY AND TREASURER SAID THE COMPANY HOPES TO RELEASE ITS AMENDED 10Q FINANCIAL STATEMENT AND YEAREND RESULTS BY THE END OF NEXT WEEK AFTER IT RECEIVES A FORMAL OTS REPORT ON ITS EXAMINATION AFTER THE INCREASED LOSS RESERVES HAWTHORNE REMAINS IN COMPLIANCE WITH ALL MINIMUM REQUIRED CAPITAL RATIOS MR OTSUKI SAID 9302260062 930226 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 3 30 TO 39 DAYS 305 40 TO 89 DAYS 307 90 TO 149 DAYS 310 150 TO 179 DAYS 312 180 TO 239 DAYS 315 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 310 30 DAYS 313 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 264 TWO MONTHS 267 THREE MONTHS 278 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 310 THREE MONTHS 318 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 305 90 DAYS 307 120 DAYS 308 150 DAYS 310 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 650 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY FEBRUARY 22 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 296 13 WEEKS 306 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 718 60 DAYS 728 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4375 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 726 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 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 9302260061 930226 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED FEB 19 ACCOUNTED FOR 122 OR AN AVERAGE 382 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 96 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 473 INVOLVED STOCKINDEX ARBITRAGE UP FROM 419 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 488 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 471 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 41 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES DAIWA SECURITIES AND KIDDER PEABODY DID MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND THOMAS WILLIAMS DID MOST OR ALL OF THEIR PROGRAM TRADING FOR CUSTOMERS 9302260060 930226 POLITICS & POLICY NATURAL GAS INDUSTRY NERVOUSLY AWAITS DECISION ON HOW ENERGY TAX IS COLLECTED BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNCERTAIN SIGNALS FROM THE CLINTON ADMINISTRATION ABOUT WHO WOULD PAY THE PROPOSED ENERGY TAX ON NATURAL GAS ARE CAUSING SOME JOSTLING BETWEEN VARIOUS SECTORS OF THE INDUSTRY FOR MOST ENERGY INDUSTRIES THE COLLECTION POINT FOR THE TAX WHICH IS LOOSELY BASED ON HEAT CONTENT AS MEASURED BY BRITISH THERMAL UNITS WOULD BE CLEAR IN THE OIL INDUSTRY REFINERS WOULD PAY AT THE REFINERY IN THE COAL INDUSTRY COAL PRODUCERS WOULD PAY AT THE MINE MOUTH AND IN THE NUCLEAR POWER INDUSTRY UTILITIES WOULD PAY AT THE POWER PLANT BUT REPRESENTATIVES OF THE NATURAL GAS INDUSTRY AND THEIR SUPPORTERS IN CONGRESS ARE UNSURE ABOUT HOW THE ENERGY TAX WOULD BE LEVIED ON NATURAL GAS A DOCUMENT RELEASED YESTERDAY BY THE TREASURY DEPARTMENT SAYS THE 26CENTPERMILLIONBTU TAX WOULD BE LEVIED AT THE PIPELINE BUT AT A WHITE HOUSE MEETING LAST WEEK AN ENERGY DEPARTMENT REPRESENTATIVE SAID THE TAX WOULD BE LEVIED AT THE WELLHEAD MEANWHILE AN ADMINISTRATION OFFICIAL SAID THAT BOTH IDEAS MAY IN THE END BE SCUTTLED IN FAVOR OF LEVYING THE TAX ON END USERS SUCH AS FACTORIES AND UTILITY COMPANIES WE'RE DEBATING THESE RIGHT NOW SAID TREASURY SECRETARY LLOYD BENTSEN THIS WEEK AT A CONGRESSIONAL HEARING ADDING THAT THE DEPARTMENT HADN'T MADE A FINAL DETERMINATION ON WHERE THE NATURALGAS TAX WOULD BE LEVIED THE UNCERTAINTY HAS CAUSED CONSIDERABLE TURMOIL WITHIN THE VARIOUS SEGMENTS OF THE NATURAL GAS INDUSTRY WHOSE INTERESTS ARE SOMEWHAT DIVERGENT SOME UTILITY COMPANIES ARE SAYING THE TAX SHOULD BE PAID UPSTREAM SO THAT THEIR CUSTOMERS WON'T SEE IT ON THEIR BILL BUT GAS PRODUCERS PREFER THAT THE TAX BE PAID DOWNSTREAM BY GAS CONSUMERS ELIMINATING THE RISK THAT PRODUCERS WOULD ABSORB THE COST IN BETWEEN STAND THE PIPELINE COMPANIES WHICH IN THE WAKE OF A FEDERAL ENERGY REGULATORY COMMISSION ORDER WILL NO LONGER BE PERMITTED TO OWN THE GAS THEY CONVEY AND THUS MIGHT END UP PAYING A TAX FOR THE TRANSPORT RATHER THAN THE PRODUCTION OF GAS IF WE DON'T OWN THE GAS SAID JERRY HALVORSEN PRESIDENT OF THE INTERSTATE NATURAL GAS ASSOCIATION WHICH REPRESENTS PIPELINE COMPANIES HOW CAN WE COLLECT THE TAX ON IT DESPITE THE DIVERGING INTERESTS OF GAS PRODUCERS TRANSPORTERS AND UTILITIES THERE'S STILL A CHANCE THE INDUSTRY WILL PUT UP A COMMON FRONT DENISE BODE PRESIDENT OF THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA WHICH REPRESENTS INDEPENDENT NATURAL GAS AND OIL PRODUCERS SAYS THE NATURAL GAS INDUSTRY IS PRETTY MUCH COMING TOGETHER TO AGREE THAT THE TAX SHOULD BE LEVIED EITHER AT OR CLOSE TO THE BURNER TIP THAT IS ON THE END USER BUT MIKE BALY PRESIDENT OF THE AMERICAN GAS ASSOCIATION WHICH REPRESENTS LOCAL UTILITIES AND PIPELINES SEES NO UNANIMOUS POSITION WE JUST SENT OUT SOMETHING THIS WEEK AND WE'RE STILL GETTING CALLS BACK 9302260059 930226 WHAT'S NEWS BUSINESS & FINANCE A CAPITALGAINS TAX BREAK PROPOSED BY CLINTON FOR INVESTORS IN SMALL BUSINESSES IS MORE LIMITED THAN SUPPORTERS HAD THOUGHT INVESTORS COULD EXCLUDE 50 OF PROFITS REALIZED FROM SELLING STOCK HELD FOR AT LEAST FIVE YEARS BUT THE GAIN ELIGIBLE FOR THE BREAK WOULD BE RESTRICTED A BILL INTRODUCED EARLIER CONTAINS NO SUCH CAP THE PRESIDENT SIGNALED HE MAY CALL FOR A NEW LEVY ON CIGARETTES AND OTHER ITEMS AFFECTING HEALTH TO OVERHAUL THE NATION'S MEDICALCARE SYSTEM CONSERVATIVE REPUBLICANS PROPOSED REVAMPING CLINTON'S FIVEYEAR BUDGET IN A WAY THAT WOULD RESTRAIN DOMESTIC SPENDING BUT STILL REQUIRE MORE THAN 55 BILLION IN NEW TAXES TO MEET THE SAME DEFICIT TARGETS STOCK PRICES ROSE IN NERVOUS TRADING WITH THE DOW JONES INDUSTRIALS GAINING 864 POINTS TO 336514 BONDS WERE FLAT OVERTHECOUNTER ISSUES RALLIED DESPITE A 20 PLUNGE IN AMGEN BENTSEN IS EXPECTED TO ASK OTHER GROUP OF SEVEN MEMBERS AT A MEETING IN LONDON TOMORROW TO DO MORE TO STIMULATE WORLD ECONOMIC GROWTH THE TREASURY SECRETARY'S HAND HAS BEEN STRENGTHENED BY CLINTON'S INITIATIVES CALIFORNIA'S PUBLIC PENSION FUND IS WEIGHING A PLAN TO INVEST 35 BILLION IN STOCKS OVER THE NEXT SIX MONTHS THE BIG FUND KNOWN AS CALPERS CURRENTLY HAS 23 BILLION INVESTED IN STOCKS THE US CALLED ON THE EUROPEAN COMMUNITY TO RENEGOTIATE A GLOBAL AIRCRAFT AGREEMENT TO FURTHER LIMIT SUBSIDIES TO AIRBUS INDUSTRIE DRUG COMPANY PROFITS EXCEED THOSE IN MOST OTHER INDUSTRIES ACCORDING TO A CONGRESSIONAL STUDY THAT IS LIKELY TO BOOST PRESSURE FOR TIGHTER REGULATION EC MINISTERS BACKED A PLAN TO RESTRUCTURE EUROPE'S STEEL INDUSTRY BY SLASHING EXCESS CAPACITY THROUGH CUTS AGREED UPON BY THE STEEL COMPANIES A WESTINGHOUSE LAWYER SAID IN A 1988 MEMO THAT SAFETY RECORDS LEFT THE FIRM VULNERABLE TO LAWSUITS BY WORKERS EXPOSED TO TOXIC MATERIALS AND SHOULD BE DESTROYED BUT THE COMPANY SAYS NO DOCUMENTS WERE ACTUALLY DESTROYED THE SEC ACCUSED THE US SUBSIDIARY OF NIKKO SECURITIES OF CONCEALING AN 18 MILLION LOSS IN FISCAL 1991 THE CHARGES WERE PART OF A PACKAGE OF ACTIONS LEVELED AGAINST THE US UNITS OF FOUR JAPANESE SECURITIES FIRMS SHAWMUT NATIONAL SAID THE FEDERAL RESERVE BOARD HAS REFERRED ITS MORTGAGELENDING PRACTICES TO THE JUSTICE DEPARTMENT FOR POSSIBLE INVESTIGATION OF RACIAL DISCRIMINATION IN LENDING IBM SAID IT WOULD BACK THE MAKER OF THE TERMINATOR MOVIES IN A VISUAL EFFECTS STUDIO TO DEVELOP NEW MOVIEMAKING TECHNIQUES AND EVENTUALLY ENTERTAINMENT SOFTWARE IMPERIAL CHEMICAL WILL GO AHEAD WITH PLANS TO SPIN OFF ITS BIOSCIENCE BUSINESSES INTO A NEW PUBLICLY TRADED COMPANY CALLED ZENECA GROUP BONDS LEHMAN BROTHERS TREASURY INDEX 499716 OFF 232 COMMODITIES OIL 2061 A BARREL UP EIGHT CENTS DOW JONES FUTURES INDEX 12493 OFF 121 SPOT INDEX 12515 OFF 072 DOLLAR 11748 YEN UNCHANGED 16357 MARKS OFF 00006 9302260058 930226 INTERNATIONAL BRIEF ALITALIA SPA CONSOLIDATED LOSS NARROWED TO 92 MILLION LAST YEAR ITALY'S ALITALIA SPA SAID ITS CONSOLIDATED LOSS NARROWED SHARPLY IN 1992 TO ABOUT 147 BILLION LIRE 92 MILLION FROM 345 BILLION LIRE A YEAR EARLIER ACCORDING TO THE AIRLINE'S PRELIMINARY FIGURES ALITALIA'S BOARD EXPRESSED SATISFACTION AT THE SUSTAINED IMPROVEMENT OF THE COMPANY'S RESULTS A NEWS RELEASE SAID INTERNATIONAL AND INTERCONTINENTAL TRAFFIC INCREASED 26 FROM 1990 ALITALIA SAID THE COMPANY SAID 1991 DIDN'T PROVIDE A VALID BASIS FOR COMPARISON BECAUSE THE PERSIAN GULF WAR CUT HEAVILY INTO PASSENGER FLIGHTS THE AIRLINE'S PLANS CALL FOR 427 TRILLION LIRE IN INVESTMENTS FROM 1993 THROUGH 1996 LAST YEAR ALITALIA CARRIED OUT FLEET INVESTMENTS AMOUNTING TO 363 BILLION LIRE ALITALIA IS VERY CAUTIOUS ABOUT PROSPECTS FOR 1993 HOWEVER GIVEN THE PRESENT ECONOMIC CONTEXT AND IN PARTICULAR THE VERY CRITICAL SITUATION IN THE AIR TRANSPORT INDUSTRY 9302260057 930226 INTERNATIONAL ICI SAYS IT WILL PURSUE SPINOFF PLAN AND SETS JOB CUTS STOCK PRICE JUMPS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC ANNOUNCED PLANS TO MOVE AHEAD WITH ITS DECISION TO SPLIT BY SPINNING OFF ITS BIOSCIENCE BUSINESSES INTO A NEW PUBLICLY TRADED COMPANY ZENECA GROUP PLC THE ANNOUNCEMENT ENDED MONTHS OF SPECULATION ON WHETHER ICI WOULD GO THROUGH WITH THE RADICAL RESTRUCTURING IT SIGNALED LAST JULY AT THE TIME OF THE SPINOFF SCHEDULED FOR JUNE ICI SHAREHOLDERS WILL RECEIVE ONE ZENECA SHARE FOR EACH ICI SHARE HELD THE NEW PHARMACEUTICALS AND AGROCHEMICALS COMPANY WILL THEN HIT THE MARKET WITH A 13 BILLION 186 BILLION RIGHTS ISSUE ICI CHAIRMAN SIR DENYS HENDERSON SAID THAT TRANSACTION WILL ALLOW ZENECA TO LARGELY ERASE THE 17 BILLION OF DEBT IT WILL INHERIT FROM ICI ICI'S MOVE WAS LAUDED BY INVESTORS AND INDUSTRY ANALYSTS WHO SAW THE DECISION AS A GUTSY MOVE BY THE COMPANY TO SERIOUSLY RESTRUCTURE AND STREAMLINE ITS BUSINESSES THE STOCK JUMPED 705 PENCE OR 65 TO CLOSE AT 11525 1647 YESTERDAY ON THE LONDON EXCHANGE ICI ALSO SAID IT WOULD SHED 9000 JOBS OR MORE THAN 6 OF ITS GLOBAL WORK FORCE OVER THE NEXT TWO YEARS TO COVER THESE AND OTHER REORGANIZATION CHARGES ICI TOOK A MASSIVE 949 MILLION EXCEPTIONAL CHARGE AGAINST EARNINGS THOUGH THE CHARGE FORCED ICI'S 1992 PRETAX RESULTS TO SWING TO A 384 MILLION LOSS FROM AN 843 MILLION PROFIT IN 1991 ANALYSTS SAID THE COMMITMENT TO COSTCUTTING WAS ENCOURAGING BEFORE EXCEPTIONAL CHARGES EARNINGS AT ICI FELL 28 TO 565 MILLION FROM 789 MILLION ROUGHLY IN LINE WITH MARKET EXPECTATIONS GROUP REVENUE IN 1992 CAME IN AT 1206 BILLION DOWN FROM 1249 BILLION IN 1991 MANY MARKET PARTICIPANTS HAD SPECULATED THAT ICI MIGHT DELAY THE SPINOFF TO WAIT UNTIL MARKET CONDITIONS WERE BETTER WITH THE CHEMICAL INDUSTRY IN A THREEYEAR SLUMP AND PHARMACEUTICAL STOCKS OUT OF FAVOR OF LATE MANY ARGUED THAT THE TIMING FOR THE SPINOFF AND RIGHTS ISSUE COULDN'T HAVE BEEN WORSE PLACING A 13 BILLION ISSUE FOR A PHARMACEUTICAL STOCK MAKING ITS DEBUT AT THE WORST POSSIBLE TIME IN HISTORY IS GOING TO BE BLOODY DIFFICULT SAID MARTIN GLEN A CHEMICALS ANALYST AT LEHMAN BROTHERS IN LONDON BUT ICI OFFICIALS KEPT UP A CONFIDENT FRONT STRESSING THE STRATEGIC RATHER THAN MARKETDRIVEN LOGIC BEHIND THE DEAL CERTAINLY I WOULD PREFER THE ECONOMY TO BE BETTER BUT THIS IS ABOUT CREATING POWERFUL COMPANIES FOR THE END OF THE 1990S INTO THE NEXT CENTURY SAID RONNIE HAMPEL WHO WILL BE CHIEF EXECUTIVE OFFICER AND DEPUTY CHAIRMAN OF THE BASECHEMICAL SIDE AFTER THE SPINOFF BEING AT THE DEPTHS OF A RECESSION MAKES THE CASE FOR DEMERGER MORE STRONGLY THAN EVER MR HAMPEL SAID STRESSING THE NEED TO WHIP ICI INTO A PERFORMANCEORIENTED NOFRILLS COSTCONSCIOUS OPERATION CURRENT MARKET EXPECTATIONS ARE THAT SHARES IN THE NEW ICI WOULD TRADE AT AROUND 5 PER SHARE WHILE ZENECA SHARES WOULD GO FOR AROUND 6 SEPARATELY STANDARD & POOR'S CORP LOWERED ITS RATING ON THE SENIOR UNSECURED DEBT OF ICI AND RELATED ENTITIES TO SINGLEAPLUS FROM DOUBLEAMINUS AND ITS COMMERCIAL PAPER RATING TO A1 FROM A1PLUS THE DOWNGRADE REFLECTS THE CYCLICAL NATURE AND LOWER PROFITABILITY OF CHEMICAL OPERATIONS COMPARED WITH THE COMBINED CHEMICAL AND BIOSCIENCE INTEREST S&P SAID 9302260056 930226 TECHNOLOGY BRIEF BAYER AG FDA APPROVES MILES DRUG A TREATMENT FOR HEMOPHILIA MILES INC PITTSBURGH A SUBSIDIARY OF GERMANY'S BAYER AG SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS GENETICALLY ENGINEERED HEMOPHILIA TREATMENT THE DRUG KOGENATE WAS CLEARED IN 1991 BY AN ADVISORY PANEL OF THE FDA KOGENATE IS A RECOMBINANTLY ENGINEERED FORM OF FACTOR VIII WHICH IS USED TO PREVENT AND CONTROL BLEEDING IN PEOPLE WITH FACTOR VIII DEFICIENCY ALSO KNOWN AS HEMOPHILIA A HEMOPHILIA ONE OF THE MOST COMMON HEREDITARY BLEEDING DISORDERS IS PASSED ALMOST EXCLUSIVELY FROM MOTHERS TO SONS IT AFFLICTS ABOUT 20000 PEOPLE IN THE US MILES RECENTLY SETTLED A PATENT DISPUTE OVER THE BLOOD CLOTTING FACTOR FOR TREATING HEMOPHILIA WITH RHONEPOULENC RORER INC WHICH IS MAJORITY OWNED BY FRANCE'S RHONEPOULENC SA 9302260055 930226 TECHNOLOGY BRIEF AMERICAN SUPERCONDUCTOR CORP PACT WITH HOECHST TARGETS BETTER SUPERCONDUCTING WIRE AMERICAN SUPERCONDUCTOR CORP SAID IT SIGNED AN AGREEMENT WITH HOECHST AG UNDER WHICH THE TWO COMPANIES WILL SPEND 63 MILLION TO IMPROVE TECHNIQUES FOR MAKING SUPERCONDUCTING WIRES UNDER THE AGREEMENT AMERICAN SUPERCONDUCTOR SAID IT WILL RECEIVE 18 MILLION OVER 18 MONTHS FROM HOECHST IT ADDED THAT THE GERMAN COMPANY WILL SPEND A MINIMUM OF AN ADDITIONAL 2 MILLION ON THE PROJECT WITH AMERICAN SUPERCONDUCTOR COMMITTING FURTHER RESOURCES VALUED AT 25 MILLION THE COMPANIES WILL WORK TO EXPAND MANUFACTURING CAPABILITIES FOR SUPERCONDUCTING WIRES AMERICAN SUPERCONDUCTOR SAID THEY WILL ALSO ESTABLISH OPERATIONS IN EUROPE TO JOINTLY MAKE AND MARKET SUCH WIRES THE WATERTOWN MASS COMPANY IS DEVELOPING HIGH TEMPERATURE CERAMIC SUPERCONDUCTORS WHICH CARRY ELECTRICITY WITHOUT RESISTANCE WHEN COOLED FOR USE IN ADVANCED ELECTRIC MOTORS POWER TRANSMISSION CABLES AND OTHER NEW TECHNOLOGIES 9302260054 930226 BUSINESS BRIEF GAINSCO INC FOURTHPERIOD NET INCOME CLIMBED 60 TO 37 MILLION GAINSCO INC POSTED A 60 INCREASE IN FOURTHQUARTER NET INCOME SLIGHTLY EXCEEDING ANALYSTS' EXPECTATIONS THE FORT WORTH TEXAS INSURANCE HOLDING COMPANY REPORTED NET OF 37 MILLION OR 22 CENTS A SHARE UP FROM 23 MILLION OR 14 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 21 TO 222 MILLION FROM 183 MILLION PERSHARE AMOUNTS WERE ADJUSTED FOR A 5 STOCK DIVIDEND PAID JULY 15 AND A 3FOR2 STOCK SPLIT SEPT 1 JOSEPH MACCHIA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER ATTRIBUTED THE PROFIT GAINS TO HIGHER REVENUE AND IMPROVED MARGINS PRIMARILY FROM BETTER PRICING OF THE COMPANY'S PRODUCTS BETTER COST CONTROLS AND IMPROVED RESULTS FROM THE INVESTMENT OF PREMIUMS FOR 1992 THE COMPANY POSTED NET OF 132 MILLION OR 81 CENTS A SHARE A 55 GAIN FROM THE 85 MILLION OR 52 CENTS A SHARE IT POSTED FOR 1991 REVENUE CLIMBED 42 TO 857 MILLION FROM 605 MILLION 9302260053 930226 US ACCUSES NIKKO OF CONCEALING LOSS IN ACTIONS AGAINST JAPANESE CONCERNS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE US SUBSIDIARY OF JAPAN'S NIKKO SECURITIES CO AND ITS TOP OFFICIALS OF CONCEALING AN 18 MILLION LOSS IN THE FIRM'S 1991 FISCAL YEAR THE CHARGES AGAINST NIKKO SECURITIES CO INTERNATIONAL WERE PART OF A PACKAGE OF SEC ACTIONS TAKEN AGAINST THE US UNITS OF THE BIG FOUR JAPANESE SECURITIES FIRMS THREE OF THE FIRMS AS EXPECTED AGREED TO SETTLEMENTS INCLUDING SOME CASH PENALTIES BUT NIKKO SAID IT WOULD CONTEST THE CHARGES BECAUSE THE PENALTIES REQUESTED BY THE SEC TO RESOLVE THE MATTER BY SETTLEMENT WERE FAR GREATER THAN THOSE REQUIRED OF ANY SECURITIES FIRMS IN THE PAST THE SEC'S ENFORCEMENT DIRECTOR WILLIAM MCLUCAS SAID HE COULDN'T DISCUSS SETTLEMENT TALKS AND NIKKO'S GENERAL COUNSEL DECLINED TO SPECIFY THE PENALTY PROPOSED BY THE SEC OF THE FIRMS THAT AGREED TO SETTLE THE US UNIT OF DAIWA SECURITIES CO WAS ACCUSED OF THE MOST SERIOUS VIOLATIONS ALLEGATIONS THAT THE FIRM AND ITS HEAD BOND TRADER ASSISTED SALOMON INC IN ILLEGAL PURCHASES OF TREASURY BILLS IN AUGUST 1989 THE DAIWA SETTLEMENT PROMPTED THE TREASURY DEPARTMENT TO LIMIT THE FIRM'S BIDDING IN AUCTIONS OF TREASURY SECURITIES FOR THREE MONTHS ENDING MAY 25 DAIWA MAY PURCHASE TREASURYS ONLY FOR ITS OWN ACCOUNT DURING THAT TIME THE DEPARTMENT SAID AFTER THE SETTLEMENTS THE FEDERAL RESERVE BANK OF NEW YORK ALSO SAID IT WILL SUSPEND TRADING ACTIVITY WITH DAIWA FOR ONE MONTH BEGINNING MONDAY IN A SEPARATE CASE THE UNIT DAIWA SECURITIES AMERICA INC WAS CHARGED YESTERDAY WITH IMPROPERLY RECORDING A TRANSACTION WITH A CLIENT IN 1989 AND IMPROPERLY MAINTAINING RECORDS RELATING TO THE LICENSING OF ITS BROKERDEALERS SIMILAR CHARGES RELATED TO LICENSING RECORDS WERE MADE AGAINST YAMAICHI SECURITIES CO'S US UNIT IN ADDITION YAMAICHI INTERNATIONAL AMERICA INC WAS ACCUSED OF A SINGLE CHARGE THAT WAS CLOSER TO THE INITIAL FOCUS OF THE SEC'S INVESTIGATION IMPROPER REIMBURSEMENT OF LOSSES INCURRED BY A CLIENT ON SECURITIES TRANSACTIONS THE THIRD FIRM THAT SETTLED WITH THE SEC NOMURA SECURITIES CO'S INTERNATIONAL UNIT WAS ACCUSED OF ONE INSTANCE OF IMPROPERLY LOGGING ORDERS IN CLIENT ACCOUNTS AND OF IMPROPER MAINTENANCE OF LICENSING RECORDS EXCEPT FOR THE SALOMONRELATED TRADE AT DAIWA WHICH WAS VOLUNTARILY DISCLOSED BY THE FIRM AND EXECUTIVE VICE PRESIDENT WILLIAM BRACHFELD ALL OF THE ALLEGED VIOLATIONS WERE UNCOVERED AS THE SEC INVESTIGATED WHETHER THE US SUBSIDIARIES WERE COMPENSATING CLIENTS FOR TRADING LOSSES THE INVESTIGATION WAS SPARKED BY 1991 REVELATIONS THAT SEVERAL JAPANESE BROKERAGE FIRMS ENGAGED IN WIDESPREAD AND IMPROPER COVERING OF THEIR CLIENTS' LOSSES THE SEC'S ONLY ALLEGATION OF IMPROPER LOSS COVERAGE BY A US UNIT WAS MADE AGAINST YAMAICHI THE FIRM IN A STATEMENT SAID IT WAS PARTICULARLY PLEASED WITH THE SEC'S CONCURRENCE THAT IT DID NOT PARTICIPATE IN OR FACILITATE THE LOSSCOMPENSATION ARRANGEMENTS FOR WHICH ITS PARENT WAS SANCTIONED BY JAPANESE REGULATORS THE US UNIT WHICH NEITHER ADMITTED NOR DENIED WRONGDOING SAID IT AGREED TO SETTLE WITH THE SEC BECAUSE THE ONGOING INVESTIGATION HAS ALREADY INVOLVED A SIGNIFICANT DRAIN OF OUR TIME AND RESOURCES BEYOND THAT YAMAICHI SAID WE REGRET THE UNFORTUNATE FOCUS OF THE INVESTIGATION SOLELY ON JAPANESE COMPANIES AND ON THE JAPANESE MEMBERS OF OUR STAFF PARTICULARLY WHEN SIMILAR ALLEGED VIOLATIONS INVOLVING US FIRMS ARE ROUTINELY DISPOSED OF BY THE NEW YORK STOCK EXCHANGE AND OTHER SELFREGULATING ORGANIZATIONS MR MCLUCAS THE SEC'S ENFORCEMENT CHIEF SAID THE CASES HAVE NOTHING TO DO WITH WHO THE OWNERS OF THE FIRM ARE HE SAID THE SETTLEMENTS OF THE UNRELATED CASES WERE ANNOUNCED ON THE SAME DAY AT THE REQUEST OF THE FIRMS IN THE SETTLEMENTS YAMAICHI AGREED TO PAY A PENALTY OF 200000 AND HIRE A CONSULTANT TO REVIEW ITS RECORDS PARTICULARLY THOSE RELATING TO LICENSING OF JAPANESE BROKERDEALERS WHO WORK FOR SHORT PERIODS IN THE US SHOJI HATTORI THE US UNIT'S FORMER CHAIRMAN WHO NOW WORKS FOR A YAMAICHI AFFILIATE IN JAPAN AGREED TO BE BARRED FROM THE US SECURITIES INDUSTRY FOR FIVE YEARS FOR ALLEGEDLY DICTATING THE COVERAGE OF A CLIENT'S LOSS TWO OTHER EXECUTIVES OF THE US UNIT CHIEF FINANCIAL OFFICER HIROSHI TAKENAKA AND TREASURER FRANK MAUCERI ALSO AGREED TO SUSPENSIONS OF 120 DAYS AND 60 DAYS RESPECTIVELY FOR THEIR ALLEGED ROLES IN THE COVERAGE OF THE CLIENT'S LOSS IN THE DAIWA TREASURY BILL CASE THE FIRM ALSO AGREED TO GIVE UP 210000 IN PROFITS IT ALLEGEDLY RECEIVED FOR ILLEGALLY PURCHASING TREASURY SECURITIES FOR SALOMON MR BRACHFELD DAIWA'S TOP BOND TRADER AGREED TO GIVE UP HIS SHARE OF DAIWA'S PROFIT OR 31500 THE SEC SAID MR BRACHFELD KNEW OR RECKLESSLY DISREGARDED THAT THE SALOMON TRADER WHO ASKED HIM TO BID 3 MILLION FOR TREASURY BILLS DID SO BECAUSE SALOMON HAD ACQUIRED TOO LARGE A POSITION IN THE SECURITIES TO SUBMIT THE BID IN ITS OWN NAME MR BRACHFELD AGREED TO BE SUSPENDED FROM THE SECURITIES INDUSTRY FOR THREE MONTHS HIS LAWYER GERALD WALPIN OF THE NEW YORK FIRM ROSENMAN & COLIN SAID MR BRACHFELD AGREED TO THE SEC'S ORDER WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN ORDER TO ALLOW THIS EPISODE TO BE PUT BEHIND BOTH DAIWA AND HIM IN THE OTHER CASE INVOLVING RECORDKEEPING DAIWA AGREED TO PAY 200000 AND HIRE A CONSULTANT TO SUPERVISE ITS RECORDS AND LICENSING OF EMPLOYEES IN THE NOMURA CASE WHICH WAS ENTIRELY BASED ON ALLEGED RECORDS VIOLATIONS THE FIRM AGREED TO PAY 50000 AND HIRE A CONSULTANT THE FIRM'S LAWYER GARY LYNCH OF NEW YORK CALLED THE ALLEGED VIOLATIONS TECHNICAL BUT SAID HIS CLIENT AGREED THAT COMPLIANCE WITH THE RECORDKEEPING RULES IS IMPORTANT IN THE NIKKO CASE FILED IN FEDERAL COURT IN NEW YORK THE SEC ALLEGED THAT THE FIRM'S FORMER CHAIRMAN CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FOR ACCOUNTING CONCEALED AN 18 MILLION LOSS RACKED UP BY FOREIGNEXCHANGE TRADER NIKKO IN A STATEMENT SAID THE THREE EXECUTIVES AND THE TRADER NONE OF WHOM ARE CHARGED IN THE COMPLAINT ARE NO LONGER WITH NIKKO OR ANY US BROKERDEALER IN SECURITIES THE FIRM SAID THE TRADES THAT LED TO THE LOSS WERE UNAUTHORIZED AND DAMAGED ONLY THE FIRM NO CUSTOMER FUNDS WERE EVER AT RISK THE FIRM SAID NIKKO SAID ITS YEARLONG SETTLEMENT TALKS WITH THE SEC HAVE BEEN UNFRUITFUL BUT ADDED THAT IT IS OPEN TO A REASONABLE SETTLEMENT 9302260052 930226 US PRESSES EC TO RENEGOTIATE AIRCRAFT ACCORD DEEPER AIRBUS SUBSIDY CUTS ARE SOUGHT TO BOLSTER DOMESTIC JET MAKERS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US INCREASING THE PRESSURE IN ITS FIGHT OVER AIRBUS INDUSTRIE CALLED ON THE EUROPEAN COMMUNITY TO RENEGOTIATE A GLOBAL AIRCRAFT ACCORD TO FURTHER LIMIT AIRBUS SUBSIDIES THE CALL FOR RENEGOTIATION COMES ON THE HEELS OF REPEATED ATTACKS BY PRESIDENT CLINTON ON EUROPEAN SUBSIDIES FOR AIRBUS EVEN THOUGH THE US AND THE EC NEGOTIATED A DEAL TO LIMIT THOSE SUBSIDIES LAST YEAR OVER THE PAST FEW WEEKS MR CLINTON HAS BLAMED THOSE SUBSIDIES FOR THE DOWNTURN IN THE US AIRCRAFT INDUSTRY WHICH HAS LAID OFF TENS OF THOUSANDS OF WORKERS THE LATEST ACTION MARKS A RAPID UNILATERAL ESCALATION OF THE TRADE FIGHT AND APPEARS TO HAVE CAUGHT EVEN SOME VETERAN US TRADE OFFICIALS BY SURPRISE GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A THINK TANK HERE SAID THE NEW ADMINISTRATION MAY BE PREPARING TO BLAME EUROPE FOR THE SEVERE PROBLEMS ENCOUNTERED BY MCDONNELL DOUGLAS CORP THE WEAKEST US MANUFACTURER OF COMMERCIAL JETLINERS THE US COMPLAINT HE SAID GETS THE BLAME OFF THE US GOVERNMENT MCDONNELL DOUGLAS'S COMMERCIAL JET UNIT IN LONG BEACH CALIF IS MOST AT RISK FROM AIRBUS COMPETITION BUT THE COMPANY THE NATION'S LARGEST DEFENSE CONTRACTOR ALSO HAS SUFFERED MAJOR REVERSES IN ITS MILITARY SECTOR GEORGETOWN UNIVERSITY RESEARCHER LOREN THOMPSON SAID IN A STUDY RELEASED THIS WEEK THE DISPUTE ALSO COULD PROMPT RETALIATION FROM AIRBUS'S OWNERS AIRBUS EQUIPS ITS JETS WITH ENGINES MADE BY UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY SUBSIDIARY AND GENERAL ELECTRIC CO AND AVIONICS MADE BY US COMPANIES IN ADDITION MANY STATEOWNED AIRLINES IN EUROPE BUY AIRCRAFT FROM BOEING CO AND MCDONNELL DOUGLAS THERE ARE A LOT OF UNPLAYED CARDS MR HUFBAUER SAID US TRADE REPRESENTATIVE MICKEY KANTOR PLAYED A TOUGH HAND YESTERDAY WHEN HE SAID THE US WOULD PUSH TO REDUCE AIRCRAFT SUBSIDIES BY MAKING CHANGES IN THE AIRCRAFT CODE THAT IS PART OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THAT CODE FIRST NEGOTIATED IN 1980 ELIMINATED TARIFFS ON CIVIL AIRCRAFT A SECOND ACCORD NEGOTIATED LAST YEAR BETWEEN THE US AND THE EC SPECIFICALLY DEALT WITH GOVERNMENT SUBSIDIES FOR THE US AND EUROPEAN AEROSPACE INDUSTRIES LIMITING SUBSIDIES TO AIRBUS AND OTHERS TO 33 OF TOTAL DEVELOPMENT COSTS BEFORE MR CLINTON'S BROADSIDES AGAINST AIRBUS BOTH SIDES HAD BEEN TRYING TO GET OTHER NATIONS TO ACCEPT THE PACT SO IT COULD BECOME PART OF THE GATT AIRCRAFT CODE RENEGOTIATING THE UNDERLYING CODE TO REDUCE SUBSIDIES FURTHER US OFFICIALS ACKNOWLEDGED WOULD HAVE THE EFFECT OF REWRITING THE USEC ACCORD ON AIRBUS THE US HASN'T COME UP WITH A SPECIFIC PROPOSAL ON HOW DEEPLY SUBSIDIES SHOULD BE CUT A US TRADE OFFICIAL SAID HE NOTED THAT THE AIRBUS ACCORD'S PREAMBLE TALKS ABOUT PROGRESSIVELY REDUCING THE ROLE OF GOVERNMENT SUPPORT THE PRESIDENT FEELS THIS IS A VITAL ELEMENT OF OUR INDUSTRIAL COMPETITIVENESS SAID A SENIOR US TRADE OFFICIAL WE HAVE TO BE CERTAIN BOEING AND MCDONNELL DOUGLAS ARE ABLE TO PRODUCE THE NEXT GENERATION OF AIRPLANES A EC SPOKESWOMAN SAID THE EC WOULD BE WILLING TO CONSULT ON THE AIRBUS ACCORD BUT HADN'T ANY COMMENT YET ON THE CALL FOR RENEGOTIATION WHENEVER THE US HAS BROUGHT UP FURTHER SUBSIDY CUTS IN AIRCRAFT NEGOTIATIONS HOWEVER THE EC HAS VOCIFEROUSLY OBJECTED DAVID VENZ AN AIRBUS SPOKESMAN SAID HE WAS MYSTIFIED BY THE LATEST CLINTON ADMINISTRATION MOVE WE HAVE NOTHING TO DO WITH THE LAYOFFS AT BOEING HE SAID REFERRING TO THE SEATTLE COMPANY'S RECENT ANNOUNCEMENT IT WOULD CUT 28000 JOBS THEY'RE THE RESULT OF THE POOR FINANCIAL STANDING OF THE WORLD'S AIRLINE INDUSTRY WE'RE LOSING ORDERS TOO A BOEING SPOKESMAN SAID THE COMPANY IS INTERESTED IN ANY US ACTIONS THAT NEGATE THE EFFECTS OF SUBSIDIES TO AIRBUS HE ALSO SAID US INITIATIVES TO ENSURE AIRBUS COMPLIANCE WITH LAST YEAR'S AGREEMENT ON SUBSIDIES ARE A GOOD STEP A SPOKESMAN FOR MCDONNELL DOUGLAS'S COMMERCIAL AIRLINER DIVISION NOTED ONLY THAT LAST YEAR'S AGREEMENT WAS A GOOD FIRST STEP HE SAID IT'S TOO EARLY TO SEE WHERE THIS WEEK'S DEVELOPMENTS WILL LEAD AIRBUS INDUSTRIE WHICH WAS FORMED IN THE EARLY 1970S IS A CONSORTIUM OF AEROSPATIALE OF FRANCE BRITISH AEROSPACE PLC CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AND DEUTSCHE AIRBUS A UNIT OF GERMANY'S DAIMLERBENZ AG THE US CONTENDS THAT THESE EUROPEAN PARTNERS HAVE SUBSIDIZED AIRBUS TO THE TUNE OF 26 BILLION AIRBUS SAYS THE AMOUNT IS MUCH SMALLER IN ADDITION THE EUROPEANS CONTEND THAT THE US GOVERNMENT THROUGH THE PENTAGON AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION HAS GIVEN US AIRCRAFT MAKERS 33 BILLION TO 40 BILLION IN INDIRECT AID 9302260051 930226 BUSINESS BRIEF MOUNTAIN MEDICAL EQUIPMENT INC COMPANY AGREES TO MERGE WITH MINNESOTA VALLEY UNIT MOUNTAIN MEDICAL EQUIPMENT INC SAID IT AGREED TO MERGE WITH CRYOGENIC ASSOCIATES INC A UNIT OF PRIVATELY HELD MINNESOTA VALLEY ENGINEERING INC OF BLOOMINGTON MINN UNDER TERMS OF THE AGREEMENT MOUNTAIN MEDICAL WILL BECOME A UNIT OF CRYOGENIC ASSOCIATES AND THE COMPANY'S SHAREHOLDERS WILL RECEIVE ONE SHARE OF CRYOGENIC ASSOCIATES COMMON FOR EVERY 200 SHARES HELD HOLDERS OF FEWER THAN 200 SHARES WILL GET A 70 CENT CASH PAYMENT FOR EACH SHARE HELD UP TO A TOTAL PAYOUT OF 100000 IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY MOUNTAIN MEDICAL'S STOCK CLOSED UNCHANGED AT 75 CENTS A SHARE THE PROPOSED MERGER CONCLUDES SEVERAL MONTHS OF TALKS BETWEEN MOUNTAIN MEDICAL A LITTLETON COLO SUPPLIER OF OXYGEN AND HOME RESPIRATORY EQUIPMENT AND CRYOGENIC ASSOCIATES A SUPPLIER OF LIQUID OXYGEN MOUNTAIN MEDICAL SIGNED A CONSULTING AGREEMENT WITH CRYOGENIC ASSOCIATES IN DECEMBER TO EXPLORE A BUSINESS COMBINATION AND TO OBTAIN FINANCING 9302260050 930226 BUSINESS BRIEF RH MACY & CO RETAILER RECEIVES EXTENSION TO SET REORGANIZATION PLAN RH MACY & CO SAID THE US BANKRUPTCY COURT IN NEW YORK APPROVED ITS REQUEST FOR MORE TIME TO COME UP WITH A REORGANIZATION PLAN THE COURT ORDER EXTENDED MACY'S EXCLUSIVITY PERIOD SCHEDULED TO EXPIRE TODAY TO SEPT 30 IT IS THE SECOND EXTENSION THE DEPARTMENT STORE CHAIN HAS RECEIVED SINCE FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS ON JAN 27 1992 DURING THE EXTENSION MACY'S HAS THE EXCLUSIVE RIGHT TO SUBMIT A REORGANIZATION PLAN MACY'S SAID THE EXTENSION IS CRUCIAL GIVEN THE SIZE AND COMPLEXITY OF THE REORGANIZATION AND CREDITORS' INTEREST IN SEEING MACY'S SPRING 1993 RESULTS MACY'S COCHAIRMEN AND CHIEF EXECUTIVES MARK S HANDLER AND MYRON E ULLMAN III SAID THAT DURING THE EXCLUSIVITY PERIOD THE COMPANY WOULD IMPLEMENT ITS NEW FIVEYEAR BUSINESS PLAN IN ORDER TO RESTORE MACY'S TO PROFITABLE GROWTH 9302260049 930226 CANADA'S HIGH COURT REFUSES TO RECOGNIZE HOMOSEXUAL FAMILIES OTTAWA IN ITS FIRST RULING ON HOMOSEXUAL RIGHTS THE CANADIAN SUPREME COURT SAID HOMOSEXUAL PARTNERS AREN'T ENTITLED TO RECEIVE FAMILY BENEFITS BECAUSE THE LAW DOESN'T RECOGNIZE SAMESEX COUPLES AS A FAMILY THE CASE INVOLVED A FEDERAL GOVERNMENT EMPLOYEE BRIAN MOSSOP WHO IN 1985 WAS DENIED BEREAVEMENT LEAVE TO ATTEND THE FUNERAL OF HIS LIVEIN PARTNER'S FATHER MR MOSSOP HAD LIVED WITH HIS PARTNER KEN POPERT FOR NINE YEARS AND CLAIMED HE WAS ENTITLED TO THE LEAVE BECAUSE HE AND MR POPERT WERE A FAMILY FEDERAL GOVERNMENT EMPLOYEES ARE ALLOWED AS MANY AS FOUR DAYS OF LEAVE AFTER THE DEATH OF AN IMMEDIATE FAMILY MEMBER THE COURT HELD THAT THE CANADIAN HUMAN RIGHTS ACT DOESN'T INCLUDE HOMOSEXUAL COUPLES IN ITS DEFINITION OF A FAMILY AND DOESN'T PROHIBIT DISCRIMINATION ON THE BASIS OF SEXUAL ORIENTATION IN A 4TO3 RULING THE COURT HELD THAT THE ACT WAS SPECIFIC IN ITS DEFINITION OF A FAMILY BUT INDICATED THE ACT ITSELF MAY BE OPEN TO A CONSTITUTIONAL CHALLENGE UNDER CANADA'S CHARTER OF RIGHTS AND FREEDOMS THE FINDING WAS A SETBACK FOR CANADIAN HOMOSEXUAL GROUPS WHICH HAD HOPED THAT A FAVORABLE RULING WOULD ENTITLE HOMOSEXUALS TO RECEIVE THEIR PARTNERS' PENSIONS HEALTH INSURANCE AND OTHER BENEFITS DENIS LEBLANC PRESIDENT OF A CANADIAN HOMOSEXUAL RIGHTS GROUP SAID THE COURT'S DECISION DIDN'T RULE OUT FURTHER CHALLENGES HE SAID THE JUDGMENT INCLUDED ALMOST AN INVITATION TO TRY AGAIN 9302260048 930226 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY AND THE EUROPEAN FREE TRADE ASSOCIATION REVISED A TREATY TO FORM A VAST FREETRADE ZONE WHICH HAD BEEN JEOPARDIZED BY SWISS VOTERS' REJECTION OF THE PACT LAST DECEMBER THE REVISED TREATY WHICH REQUIRES RATIFICATION BY 18 NATIONAL PARLIAMENTS WILL CREATE A EUROPEAN ECONOMIC AREA OF MORE THAN 370 MILLION PEOPLE ON JULY 1 UNDER THE COMPROMISE ABOUT 60 OF SWITZERLAND'S EXPECTED FINANCIAL CONTRIBUTION TO THE 12MEMBER EC'S POOREST COUNTRIES WILL BE MADE UP BY THE OTHER SIX EFTA NATIONS SWITZERLAND WAS TO HAVE PROVIDED 27 OF A FUND TOTALING 2 BILLION EUROPEAN CURRENCY UNITS 238 BILLION TO BENEFIT SPAIN PORTUGAL GREECE AND IRELAND IN MAKING UP THAT SHARE EFTA MEMBERS SWEDEN NORWAY FINLAND AUSTRIA ICELAND AND LIECHTENSTEIN RECEIVED CONCESSIONS SUCH AS IN FARM TRADE THE TREATY ALLOWS SWITZERLAND TO JOIN THE BLOC SHOULD IT REVERSE ITS STANCE JAPAN WILL PROVIDE SUBSIDIES TO SMALL AND MEDIUMSIZED COMPANIES THAT CUT EMPLOYEES' TIME AT WORK THE COUNTRY'S LABOR LAWS PROVIDE FOR A WORKWEEK OF BETWEEN 44 AND 46 HOURS WHICH THE LABOR MINISTRY WANTS TO SHORTEN TO 40 HOURS BY 1996 TO HELP IMPROVE QUALITY OF LIFE THE GOVERNMENT ALSO HOPES TO STIMULATE THE ECONOMY BY GIVING WORKERS MORE TIME TO SPEND THEIR EARNINGS SUBSIDIES RANGING FROM 4200 TO 25000 WILL BE PAID TO COMPANIES THAT REDUCE WORKWEEKS AT LEAST TWO HOURS AND INVEST MORE THAN 42400 TO ACCOMPLISH THAT SUCH AS BOOSTING PRODUCTIVITY BY AUTOMATING SOME JOBS OR BUYING TECHNOLOGICALLY ADVANCED EQUIPMENT TRADE BETWEEN CHINA AND RUSSIA LAST YEAR MORE THAN DOUBLED TO A RECORD 585 BILLION FROM 195 BILLION A YEAR EARLIER RUSSIA BECAME CHINA'S SIXTHLARGEST TRADING PARTNER THOUGH BARTER ACCOUNTED FOR 372 BILLION OR 63 OF THE TOTAL CHINA RAN A TRADE DEFICIT OF 12 BILLION WITH RUSSIA AS CHINESE EXPORTS TOTALED 233 BILLION AND IMPORTS 352 BILLION INDUSTRIAL PRODUCTS ACCOUNTED FOR 83 OF ALL THE TRANSACTIONS EASTERN GERMAN ENTERPRISES OWNED AND HEAVILY SUBSIDIZED BY THE GOVERNMENT'S TREUHANDANSTALT PRIVATIZATION AGENCY WILL ABANDON A MARCH 1991 CONTRACT THAT WOULD RAISE PAY 26 APRIL 1 IN EFFORTS TO BRING WAGES TO WESTERN GERMAN LEVELS THE TREUHAND ALIGNED ITSELF WITH THE GESAMTMETALL EMPLOYERS FEDERATION AND WILL RAISE PAY 9 IN LINE WITH OTHER EMPLOYERS IN THE REGION WHERE INFLATION IS RUNNING AT AN 115 ANNUAL RATE THE DEVELOPMENT HEIGHTENS THE LIKELIHOOD OF A STRIKE WHICH WOULD FURTHER HURT THE UNPROFITABLE TREUHAND ENTERPRISES WORLDWIDE DEMAND FOR GOLD EXCEEDED 3000 METRIC TONS LAST YEAR UP FROM 2815 TONS IN 1991 A METRIC TON IS EQUAL TO 220462 POUNDS THE WORLD GOLD COUNCIL A LONDONBASED ASSOCIATION OF PRODUCERS SAID THAT OF THE 1992 TOTAL DEMAND FOR USE IN JEWELRY ROSE 14 TO ABOUT 2400 TONS THE BIGGEST INCREASES OCCURRED IN MIDEAST AND ASIAN MARKETS WHERE CONSUMERS ARE GAINING AFFLUENCE THE COUNCIL FORECAST DEMAND WILL RISE FURTHER THIS YEAR THOUGH THE PICKUP IN THE WEST IS EXPECTED TO BE SLOW AS ECONOMIES EMERGE FROM RECESSION FINLAND'S GOVERNMENT PROPOSED BUILDING THE COUNTRY'S FIFTH NUCLEAR POWER PLANT THE CABINET VOTED 116 FOR THE MEASURE WHICH REQUIRES APPROVAL BY THE 200MEMBER PARLIAMENT WHERE ONLY LAST NOVEMBER A PROPOSAL TO BUILD MORE NUCLEAR SITES WAS REJECTED 9678 PRIME MINISTER ESKO AHO OPPOSES MORE NUCLEAR POWER WHICH SUPPLIES ONETHIRD OF FINLAND'S ELECTRICITY AND ABOUT 15 OF TOTAL ENERGY REQUIREMENTS A NEW FINNISH OPINION POLL FOUND THAT PARLIAMENTARY OPPOSITION TO NUCLEAR EXPANSION HAS INCREASED TO A 9967 MARGIN WITH 34 LEGISLATORS UNDECIDED OR UNAVAILABLE SPANISH PRIME MINISTER FELIPE GONZALEZ SAID THE CABINET TODAY WILL APPROVE MEASURES TO ARREST DROPS IN EMPLOYMENT AND PRIVATE INVESTMENT BUT WON'T ACT TO STIMULATE THE SLUGGISH ECONOMY BRUSHING ASIDE CALLS TO RELAX MONETARY POLICY MR GONZALEZ CITED RISKS OF INCREASING GOVERNMENT SPENDING AND CUTTING INTEREST RATES AMID RECESSION HE REBUFFED UNION DEMANDS TO WITHDRAW THE SPANISH PESETA FROM EUROPE'S EXCHANGERATE BASKET AND HE RULED OUT EARLY ELECTIONS RATHER THAN LOOK TO THE GOVERNMENT FOR SOLUTIONS MR GONZALEZ SAID EMPLOYERS AND UNIONS MUST AGREE TO MODERATE WAGE INCREASES FOR THIS YEAR PAY BOOSTS OF 6 COUPLED WITH SPAIN'S RIGID LABOR LAWS HAVE CONTRIBUTED TO UNEMPLOYMENT RUNNING AT 20 AMONG THE PLANNED MEASURES PARTTIME JOBS WOULD BE ENCOURAGED AND TEMPORARY WORKERS' CONTRACTS WOULD BE EXTENDED FOR A YEAR ANY RESULTING RISE IN THE BUDGET DEFICIT WILL BE OFFSET BY SPENDING CUTS TO BOOST PRIVATE INVESTMENT GOVERNMENT LENDERS WILL EXTEND CREDIT LINES TO COMPANIES FOR NEW TECHNOLOGY AND OTHER IMPROVEMENTS AND SMALLER FIRMS WILL BE GIVEN MORE TIME TO PAY DEBTS RUSSIA EXTENDED UNTIL SUNDAY THE DEADLINE FOR UKRAINE TO PAY OVERDUE BILLS FOR NATURAL GAS OR HAVE ITS SUPPLY CUT OFF THE DISPUTE THREATENS THE FLOW OF GAS TO EUROPEAN CUSTOMERS CANADA'S GOVERNMENT INTRODUCED A BILL IN THE HOUSE OF COMMONS TO IMPLEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT WITH THE US AND MEXICO STARTING JAN 1 1994 9302260047 930226 ENTERTAINMENT IBM VENTURES TO HOLLYWOOD IN VISUAL EFFECTS BY RICHARD TURNER AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL BACK THE MAKER OF THE TERMINATOR MOVIES IN A VISUALEFFECTS STUDIO TO DEVELOP NEW FILM TECHNIQUES AND EVENTUALLY ENTERTAINMENT SOFTWARE THE ALLIANCE WHICH SHOWS HOW COMPUTER COMPANIES INCREASINGLY SEE HOLLYWOOD AS A LOCOMOTIVE FOR THE FUTURE OF DIGITAL TECHNOLOGY WAS INTRODUCED WITH ENTHUSIASTIC IF UNSPECIFIC TALK OF EXTENDING THE ENVELOPE AND A NEW ERA IN FILMMAKING IBM MULTIMEDIA EXECUTIVES ANNOUNCED THE VENTURE FLANKED BY WRITER/DIRECTOR/PRODUCER JAMES CAMERON SPECIALEFFECTS WIZARD STAN WINSTON AND SCOTT ROSS THE HOLLYWOOD EXECUTIVE WHO WILL SERVE AS THE VENTURE'S CHIEF EXECUTIVE OFFICER THE THREE MEN WORKED TOGETHER ON TERMINATOR 2 JUDGMENT DAY A CAMERON FILM THAT BROKE NEW GROUND IN MOVIE SPECIAL EFFECTS AND SOLD NEARLY 500 MILLION IN TICKETS WORLDWIDE IBM WILL OWN 50 OF THE NEW VENTURE DIGITAL DOMAIN AND THE THREE ENTERTAINMENT INDUSTRY FIGURES WILL SPLIT THE REST AND HAVE DAYTODAY CONTROL DIGITAL DOMAIN WILL COMPETE WITH THE LEADER IN THE FIELD THE NEWLY CHRISTENED LUCAS DIGITAL SERVICES AN INHOUSE VENTURE OF SONY CORP AND A HOST OF SMALLER SHOPS INCLUDING A BURGEONING GROUP OF SPECIALEFFECTS CREATORS WORKING ON POWERFUL DESKTOP COMPUTERS THE NEW COMPANY'S INITIAL CAPITALIZATION WASN'T REVEALED BUT MR ROSS CALLED IT SIGNIFICANT AND LONG TERM THE PRODUCTION STUDIO STAFFED INITIALLY BY 15 TO 20 EMPLOYEES WILL PROVIDE SUPPORT SERVICES FOR FILMMAKERS WHO WANT TO USE STATEOFTHEART EQUIPMENT TO PUT NEW BELLS AND WHISTLES IN THEIR MOVIES THESE WOULD INCLUDE VARIOUS FORMS OF COMPUTER ANIMATION AND MORPHING TECHNIQUES USED IN TERMINATOR 2 AND MR CAMERON'S THE ABYSS IN MORPHING ONE IMAGE IS METAMORPHOSED INTO A COMPLETELY DIFFERENT ONE SEAMLESSLY AND IN FULL VIEW THE COMPANY ALSO WILL WORK ON TELEVISION PROGRAMMING COMMERCIALS AND THEMEPARK SIMULATOR RIDES ALTHOUGH THE VENTURE AT THIS POINT IS LITTLE MORE THAN A HIGHTECH WORKSHOP FOR MAKING SKULLS ROTATE AND GALACTIC FIREFIGHTS ERUPT IBM EXECUTIVES STRESSED THAT THE ALLIANCE HAS BROADER GOALS INVOLVING THE CREATION OF INTELLECTUAL PROPERTY INDEED LUCIE J FJELDSTAD IBM'S VICE PRESIDENT AND GENERAL MANAGER OF MULTIMEDIA SAID THE COMPANY WOULD BE DELIGHTED IF DIGITAL DOMAIN EVENTUALLY TURNED INTO A MAJOR HOLLYWOOD STUDIO THE NEARTERM PLAN HOWEVER IS TO BEGIN PRODUCING SOFTWARE FOR INTERACTIVE ENTERTAINMENT OR EDUCATIONAL MATERIALS KATHLEEN EARLEY IBM DIRECTOR OF MULTIMEDIA ALLIANCES SAID IBM HAD LONG BEEN ANXIOUS TO FIGURE OUT HOW TO GET COMPUTER COMPANIES INTO THE NEXT GENERATION OF CONTENT OR SOFTWARE WITHOUT SPENDING THE BILLIONS OF DOLLARS THAT OTHER TECHNOLOGY GIANTS HAVE BY INVESTING IN HOLLYWOOD SUCH AS SONY'S ACQUISITION OF COLUMBIA PICTURES AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S PURCHASE OF MCA INC MS FJELDSTAD CALLED DIGITIZED INFORMATION AN ROA RETURN ON ASSETS GOLD MINE AND COMPARED THE CURRENT BLOSSOMING OF DIGITAL PRODUCTION FACILITIES TO THE BEGINNINGS OF THE HOLLYWOOD STUDIO SYSTEM IN THE 1930S JUST AS EARLY HOLLYWOOD EXECUTIVES HAD NO IDEA HOW BIG THIS WAS ALL GOING TO BECOME IBM HAS NO IDEA WHERE ALL THIS STUFF IS GOING TO END IBM HOPES THAT MULTIMEDIA VENTURES SUCH AS DIGITAL DOMAIN WILL HELP IT REIGNITE GROWTH AT THE TROUBLED COMPUTER GIANT WHICH POSTED HUGE LOSSES IN 1991 AND 1992 BY ENCOURAGING PROJECTS THAT REQUIRE HUGE AMOUNTS OF DIGITIZED VISUAL INFORMATION SUCH AS SPECIALEFFECTS MOVIES AND VIDEO TELECONFERENCES IBM WANTS TO SPARK DEMAND FOR THE POWERFUL COMPUTERS AND SOFTWARE NEEDED TO HANDLE SUCH DATA PURSUING THIS AIM IBM IS TALKING TO MANY OTHER ENTERTAINMENTRELATED COMPANIES INCLUDING BLOCKBUSTER ENTERTAINMENT CORP AND SEVERAL CABLETELEVISION CONCERNS THE COMPANY HAS FORMED A UNIT THAT WILL PROVIDE TENS OF MILLIONS OF DOLLARS IN VENTURECAPITALTYPE FINANCING FOR ENTREPRENEURS WHO WANT TO TEAM UP WITH IBM IN MULTIMEDIA IBM ALSO HAS A HIGHPROFILE JOINT VENTURE WITH APPLE COMPUTER INC TO SET STANDARDS FOR MULTIMEDIA AND IS DEVELOPING A PLAN TO ENABLE A NATIONAL DIGITAL HIGHWAY FOR TRANSPORTING DIGITAL IMAGES BETWEEN BUSINESSES AND EVENTUALLY PROVIDING CONSUMER SERVICES SUCH AS ONDEMAND MOVIE VIEWING DIGITAL DOMAIN ALSO FITS IBM'S AIM OF GETTING MORE REVENUE FROM WHAT IT REFERS TO AS A SOFTWAREANDSERVICES COMPANY INDEED IBM CLAIMED IT WOULD BE PERFECTLY HAPPY IF DIGITAL DOMAIN WERE TO USE ONLY COMPUTERS FROM COMPETITORS SUCH AS SILICON GRAPHICS INC MS EARLEY SAID IBM HAS BEEN WORKING ON THE IDEA OF A DIGITAL PRODUCTION STUDIO FOR SEVERAL YEARS IN FACT THE COMPANY WHICH IS BASED IN ARMONK NY HAD DEVELOPED A PLAN FOR ITS OWN INHOUSE STUDIO THE STUMBLING BLOCK WAS THAT STAID IBM HAD NO CLUE ABOUT WHAT KIND OF PROJECTS ITS STUDIO MIGHT DEVELOP SHE ADDED THEY WERE ALL DRESSED UP WITH NO PLACE TO GO MR CAMERON JOKED EVENTUALLY SAID MS FJELDSTAD WE DECIDED THAT THE ENVELOPE WOULDN'T BE PUSHED UNLESS WE HAD CREATIVE TALENT WHO WOULD MAKE THEIR DREAMS THE PICTURES IN THEIR HEADS A REALITY EVEN THOUGH SEVEN OF THE TOP 10 GROSSING FILMS OF ALL TIME ARE EFFECTS FILMS MOVIE STUDIOS GENERALLY ARE RELUCTANT TO USE EXTENSIVE SPECIAL EFFECTS IN THEIR FILMS BECAUSE THEY'RE EXPENSIVE AND OFTEN CAUSE COSTLY DELAYS FURTHERMORE MR CAMERON SAID MANY FILMMAKERS FEEL UNCOMFORTABLE SIMPLY DELEGATING WHOLE SECTIONS OF THEIR MOVIES TO OUTSIDE EFFECTS SHOPS YOU DON'T SEE THE MARTIN SCORSESES OF THE WORLD THE DIRECTOR OF SUCH FILMS AS RAGING BULL AND CAPE FEAR DOING ANIMATED FILMS BUT DIGITAL TECHNOLOGY WOULD ALLOW A DIRECTOR LIKE MR SCORSESE TO FILM AN EPIC ABOUT NAPOLEON WITH CASTLES AND HORDES OF CAVALRY WITHOUT THE EXPENSE OF A FULLBLOWN LOCATION SHOOT MR CAMERON SAID FIFTY HORSEMEN COULD BECOME 5000 THROUGH COMPUTER IMAGING AND ACTORS COULD BE DROPPED INTO EXOTIC SETTINGS WITH COMPUTER TECHNIQUES HE ADDED MR CAMERON WHO ALSO DIRECTED ALIENS HAS CLOUT IN HOLLYWOOD LAST YEAR HIS COMPANY LIGHTSTORM ENTERTAINMENT WAS FUNDED BY TWO MAJOR STUDIOS AND OVERSEAS COMPANIES TO ENABLE HIM TO MAKE AS MANY AS 12 MOVIES OVER FIVE YEARS MANY OF THEM LARGESCALE PRODUCTIONS AND RETAIN OWNERSHIP OF THE FILMS A LUXURY GRANTED TO FEW MR WINSTON IS A LONGTIME MODEL MAKER WHO HAS BEEN NOMINATED FOR SEVEN ACADEMY AWARDS AND MOST RECENTLY WORKED ON THE COMING FILM JURASSIC PARK MR ROSS WAS A GROUP VICE PRESIDENT AT LUCASARTS ENTERTAINMENT LTD WITH RESPONSIBILITY OVER INDUSTRIAL LIGHT & MAGIC THE INDUSTRY'S PREMIERE SPECIAL EFFECTS UNIT EARLIER THIS WEEK GEORGE LUCAS CREATOR OF THE STAR WARS MOVIES AND OWNER OF LUCASARTS AND ITS AFFILIATED LUCASFILM LTD REORGANIZED HIS COMPANY AND CREATED LUCAS DIGITAL SERVICES TO HIGHLIGHT HIS COMMITMENT TO THE DIGITAL ARENA LARGE COMPANIES INCREASINGLY HAVE BEEN SEEKING ALLIANCES TO MARRY COMPUTER AND CONSUMER ELECTRONICS WITH HOLLYWOOD MATSUSHITA FOR EXAMPLE OWNS A STAKE IN 3DO CO A MARKETER OF A NEW INTERACTIVE GAME PLAYER TIME WARNER INC IS ALSO A 3DO PARTNER AND SONY AND PARAMOUNT COMMUNICATIONS INC BOTH HAVE SIGNIFICANT INTERACTIVE SOFTWARE OPERATIONS MICHAEL SCHULHOF CHAIRMAN OF SONY USA TOUTED THE DIGITAL FUTURE IN A WIDELY COVERED SPEECH IN HOLLYWOOD TUESDAY SONY'S OWN SONY DIGITAL PICTURES SO FAR IS ONLY USED FOR FILMS FROM SONY'S COLUMBIA AND TRISTAR FILMMAKING UNITS 9302260045 930226 CBOE BEGINS TRADING NEW OPTIONS CONTRACTS ON S&P'S TWO INDEXES CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE TODAY BEGINS TRADING SOCALLED FLEXIBLE OPTIONS CONTRACTS WHICH ALLOW INSTITUTIONAL INVESTORS TO TAILOR EXCHANGETRADED STOCKINDEX OPTIONS TO THEIR PARTICULAR NEEDS BASED ON THE CBOE'S POPULAR STANDARD & POOR'S INDEXES OF 100 AND 500 LEADING STOCKS THE CONTRACTS REPRESENT THE EXCHANGE'S EFFORT TO GRAB A SHARE OF THE HUGE OVERTHECOUNTER MARKET IN CUSTOMIZED STOCKINDEX OPTIONS THAT MARKET IS NOW DOMINATED BY A HANDFUL OF NEW YORK SECURITIES FIRMS OVERTHECOUNTER INDEX OPTIONS HAVE GROWN INTO A MULTIBILLIONDOLLAR MARKET SAID ALGER B CHAPMAN CBOE'S CHAIRMAN FLEXIBLE OPTIONS PROVIDE INSTITUTIONAL ASSET MANAGERS WITH AN ALTERNATIVE TO OTC OPTIONS TRADERS SAY THE FLEXIBLE OPTIONS COULD OFFER ADVANTAGES OVER THE OTC MARKET INCLUDING GREATER FINANCIAL SECURITY FOR TRADES AND A MARKET THAT IS LESS EXPENSIVE AND EASIER TO NAVIGATE 9302260044 930226 LAW VIOLATIONS OF POLICE POLICY ARE ALLEGED AS US OPENS TRIAL ON KING BEATING BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE FEDERAL TRIAL OF FOUR LOS ANGELES POLICEMEN ACCUSED OF BEATING RODNEY KING OPENED AS THE GOVERNMENT LAID OUT ITS DIFFICULT CASE ARGUING THAT THE OFFICERS REPEATEDLY VIOLATED POLICE POLICY DURING AND AFTER THE ATTACK IN ORDER TO CONVICT THE FOUR ON CHARGES OF VIOLATING MR KING'S CIVIL RIGHTS FEDERAL PROSECUTORS MUST PROVE BEYOND A REASONABLE DOUBT THAT THE OFFICERS MEANT TO USE TOO MUCH FORCE IN MR KING'S MARCH 1991 ARREST LAST YEAR STATE PROSECUTORS COULDN'T CONVICT THE MEN ON LESSCOMPLEX CHARGES TO MEET THE INTENT REQUIREMENT IT APPEARS THAT FEDERAL PROSECUTORS WILL PLACE MORE EMPHASIS ON POLICE PROCEDURAL RULES THAN DID THE STATE'S LAWYERS IN THE EARLIER CASE OFFICERS ARE PRESUMED TO KNOW THE RULES AND EVIDENCE OF VIOLATIONS WOULD BOLSTER CLAIMS THAT THEY WERE AWARE THEY WERE ACTING UNLAWFULLY DURING HIS 50MINUTE OPENING STATEMENT LEAD PROSECUTOR STEVEN CLYMER MADE REPEATED REFERENCES TO THE LOS ANGELES POLICE DEPARTMENT'S USEOFFORCE POLICY HE TOLD JURORS THAT OFFICERS ARE TAUGHT NOT TO HIT OR KICK SUSPECTS WHO AREN'T COMPLYING WITH ORDERS UNLESS THE PERSONS BECOME COMBATIVE POLICE ALSO ARE INSTRUCTED NOT TO STRIKE SUSPECTS IN THE FACE UNLESS OFFICERS' LIVES ARE THREATENED THE PROSECUTOR DEMONSTRATED THE USE OF THE SIDEHANDLED BATON SWINGING IT SHARPLY IN A SOCALLED POWER STROKE WHICH POLICE RULES IDENTIFY AS THE MOST DANGEROUS USE OF THE WEAPON ASSISTANT US ATTORNEY CLYMER THEN SHOWED THE JURY THE FAMOUS 81SECOND AMATEUR VIDEOTAPE MADE THE NIGHT OF MR KING'S ARREST FIRST ALL THE WAY THROUGH THEN SLOWED WITH INTERRUPTIONS FOR COMMENTS ON A LARGESCREEN TELEVISION MONITOR AT SEVERAL POINTS MR KING WAS SEEN BEING BEATEN WITH SIDEHANDLED BATONS IN AN EERIE ECHO OF THE PREVIOUS COURTROOM DEMONSTRATION MR CLYMER SAID THE GOVERNMENT PLANNED TO CALL SEVERAL EXPERTS WHO WOULD TESTIFY THAT THE BLOWS VIOLATED POLICE POLICY AND CIVILIAN WITNESSES WHO WOULD TESTIFY THAT MR KING WASN'T BEING COMBATIVE THE STATE PROSECUTORS LAST YEAR RELIED ALMOST EXCLUSIVELY ON THE VIDEOTAPE CALLING ONLY ONE EXPERT IN POLICE USEOFFORCE POLICY THE JURY COMPOSED OF NINE WHITES TWO BLACKS AND ONE HISPANIC WAS SWORN IN MONDAY LAST APRIL THE ACQUITTAL OF THE WHITE OFFICERS BY A STATE COURT JURY WITHOUT ANY BLACK MEMBERS TOUCHED OFF ONE OF THE WORST CIVIL DISTURBANCES IN US HISTORY FIVE OF THE JURORS FOR THIS TRIAL HAVE EXPERIENCE IN THE MILITARY OR A PRIVATE SECURITY FORCE OR HAVE TRIED TO JOIN LAW ENFORCEMENT AGENCIES EIGHT ARE MEN AND FOUR ARE WOMEN THE FEDERAL PROSECUTOR ALSO CONFIRMED THAT MR KING WILL TAKE THE STAND STATE PROSECUTORS DIDN'T CALL HIM TO TESTIFY LAST YEAR A MOVE THAT WAS LATER CRITICIZED IN AN APPARENT SURPRISE FOR THE DEFENSE MR CLYMER CHARGED THAT AFTER THE BEATING TWO OF THE DEFENDANTS DELAYED TRANSPORTING MR KING TO A HOSPITAL FOR NEARLY TWO HOURS BY DETOURING BACK TO THEIR POLICE STATION IN ORDER TO SHOW HIM OFF TO COLLEAGUES THEY ALSO FAILED TO COMPLY WITH POLICE REGULATIONS REQUIRING THEM TO RECORD THEIR ACTIONS IN A LOG THE PROSECUTOR SAID DEFENSE LAWYERS SAID THE OFFICERS STOPPED AT THE STATION TO BOOK MR KING AND THE DELAY INVOLVED NOTIFYING THE PAROLE BOARD THAT THEY HAD ARRESTED A CONVICTED FELON IN THEIR OPENING STATEMENTS DEFENSE ATTORNEYS COUNTERED THAT THE OFFICERS' ACTIONS BOTH DURING AND AFTER THE BEATING WERE APPROPRIATE AND WITHIN POLICE DEPARTMENT GUIDELINES THE CONDUCT THAT WAS ENGAGED IN WAS NOT ILLEGAL BUT WAS DIRECTLY IN RESPONSE TO THE CONDUCT OF MR KING SAID IRA SALZMAN THE ATTORNEY FOR SGT STACEY KOON THE ARGUMENT THAT MR KING COULD HAVE PREVENTED THE BEATING WAS APPARENTLY PERSUASIVE IN LAST YEAR'S CASE DURING OPENING STATEMENTS FOR BOTH SIDES NO MENTION WAS MADE OF THE FACT THAT MR KING IS BLACK PROSECUTORS BEFORE TRIAL HAD CONVINCED JUDGE JOHN G DAVIES THAT THEY AREN'T REQUIRED TO PROVE THAT THE BEATING WAS MOTIVATED BY RACIAL PREJUDICE INSTEAD THEY CAN SHOW THAT THE POLICEMEN HAD ANOTHER MOTIVE SUCH AS ANGER OVER THE SUSPECT'S BEHAVIOR 9302260043 930226 WHO'S NEWS ATLANTIC RICHFIELD CO ATLANTIC RICHFIELD CO LOS ANGELES DAVID T MCLAUGHLIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ASPEN INSTITUTE BASED IN QUEENSTOWN MD WAS ELECTED A DIRECTOR OF THIS OIL GAS AND MINERALS CONCERN MR MCLAUGHLIN 60 YEARS OLD SUCCEEDS ROY ANDERSON 72 WHO RETIRED LAST DECEMBER 9302260042 930226 NEW ENGLAND UTILITIES DEVELOP PLAN TO EASE POWER SALES IN REGION HARTFORD CONN NORTHEAST UTILITIES SAID THAT IT AND OTHER NEW ENGLAND UTILITIES HAVE DEVELOPED A PLAN FOR PROVIDING ACCESS TO POWER LINES IN THE REGION IN ORDER TO FACILITATE POWER SALES AMONG ITS UTILITIES THE PLAN REPRESENTS A POSSIBLE NATIONAL PRECEDENT THAT COULD HELP FOSTER MORE COMPETITION AMONG ELECTRIC UTILITIES IT MEANS UTILITIES COULD BUY AND SELL POWER PRETTY FREELY THROUGH THE REGION SAID JEFFREY KOTKIN A NORTHEAST SPOKESMAN UTILITIES IN MANY PARTS OF THE US ALREADY WHEEL OR TRANSMIT OTHER UTILITIES' POWER THROUGH THEIR LINES AS PART OF ELECTRICITY SALES BETWEEN WIDELY SEPARATED POWERGENERATING COMPANIES THE FEDERAL NATIONAL ENERGY ACT OF 1992 ENCOURAGES SUCH WHEELING AS A WAY TO INCREASE COMPETITION AND KEEP PRICES LOW IN THE ELECTRIC POWER INDUSTRY BUT WHEELING RAISES FRACTIOUS ISSUES AMONG UTILITIES ESPECIALLY ABOUT HOW MUCH ONE COMPANY CHARGES ANOTHER FOR USE OF ITS POWER LINES THE NEW ENGLAND UTILITIES' PLAN IS MEANT TO BE A FRAMEWORK FOR STANDARDIZING SUCH CHARGES AND PREVENTING DISPUTES FROM ARISING OVER WHEELING IN THE REGION NORTHEAST SAID THE PLAN WAS DRAFTED BY A MAJORITY OF NEW ENGLAND UTILITIES INCLUDING ALL OF THE REGION'S BIG PUBLICLY TRADED COMPANIES NORTHEAST'S MR KOTKIN SAID IT CALLS FOR A REGIONAL UTILITY GROUP CALLED THE NEW ENGLAND POWER POOL TO ADMINISTER REGIONAL WHEELING TO BECOME EFFECTIVE THE PROPOSED WHEELING ARRANGMENT MUST BE APPROVED BY FEDERAL REGULATORS AND BY UTILITIES REPRESENTING AT LEAST 85 OF THE UTILITY GROUP'S ELECTRIC CUSTOMERS NORTHEAST SAID THE COMPANY ADDED THAT IT HOPES THE PROPOSED WHEELING SYSTEM WILL TAKE EFFECT BEFORE THE END OF THE YEAR 9302260041 930226 WANNA CUT A RUG FIRST BETTER VISIT A HARDWARE STORE FOR MUSICAL SAWYERS THE ROAD TO SUCCESS OFTEN BEGINS AT A BASEMENT WORKBENCH BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA MOST WEEKENDS PHIL MINER 84 YEARS OLD GOES TO THE UNDERGROUND THIS CITY'S SUBTERRANEAN MALL OF RESTAURANTS AND PRICEY BOUTIQUES TO DO A LITTLE SERENADING A THIN BALDING MAN WHO FAVORS LOUD FLANNEL SHIRTS HE SITS DOWN ON A PLASTIC BUCKET AND UNCASES HIS MOST PRIZED INSTRUMENT A CARPENTER'S SAW PURCHASED IN A HARDWARE STORE 50 YEARS AGO THEN HE TAKES OUT A HOMEMADE VIOLIN BOW ARRANGES THE SAW IN ITS MUSICMAKING POSITION AND BEGINS PLAYING A FEW TIMETESTED FAMILIARS LIKE THE OLD RUGGED CROSS AND WHISPERING HOPE BY MAKING A SLIGHT SSHAPED BEND IN THE SAW AND THEN RUNNING THE BOW ACROSS ITS UNTOOTHED EDGE WHILE VIBRATING THE SAW'S HANDLE BETWEEN HIS KNEES HE PRODUCES A HIGH METALLIC WHINE WITH AN EERIE TREMOLO THAT CAN BE HEARD MORE THAN A BLOCK AWAY THE UNDERGROUND ACOUSTICS ADD AN ECHO EFFECT DEPENDING ON THE SKILL OF THE PLAYER A SAW CAN BE MADE TO SOUND LIKE A VIOLIN A SOPRANO A COYOTE HOWLING OR A CAT IN AGONY MR MINER'S SAW PRODUCES A STRONG BUT QUAVERY WHISTLING SOUND SOME MAY THINK MR MINER IS GOING AGAINST THE GRAIN PLAYING A MUSICAL INSTRUMENT THAT HAD ITS HEYDAY IN VAUDEVILLE 70 YEARS AGO BUT THE SILVERY SOUND OF SLITHERY STEEL AS IT ONCE WAS KNOWN IS INSINUATING ITS WAY INTO MOVIE THEMES CLASSICAL MUSIC TELEVISION SITUATIONCOMEDIES AND EVEN ROCKANDROLL MR MINER A RETIRED COMMERCIAL ARTIST SAYS HE TAKES IN MORE THAN 300 IN DONATIONS ON A GOOD NIGHT WHEN HE FINISHES PLAYING HE HANDS OUT BOOKLETS EXPLAINING HOW THE ROAD TO MUSICIANSHIP CAN BEGIN AT THE WORKBENCH FOR MR MINER THAT JOURNEY BEGAN IN 1927 WHEN HE FIRST HEARD A SAW PLAYED I GOT ADDICTED THAT DAY SO I COULDN'T QUIT PLAYING AS A FIFTHGRADER JANEEN RAE HELLER WAS SIMILARLY ENTRANCED WHEN A MAN CAME TO HER SCHOOL IN DENVER AND DEMONSTRATED HOW SAWS SING BY LETTING HER HIT ONE WITH A MALLET I WAS JUST SQUIRMING UNTIL I GOT HOME AND GOT OUR SAW OUT OF THE GARAGE NOW MS HELLER 29 IS A PROFESSIONAL SAW PLAYER IN TOLUCA LAKE CALIF SHE HAS PLAYED WITH JAZZ ROCK AND FOLK GROUPS AND HAS HAD SAWPLAYING PARTS WRITTEN FOR HER IN HOME IMPROVEMENT A TV SITCOM EVEN PROFESSIONAL MUSICIANS GET HOOKED DAVID WEISS 46 THE LEAD OBOE PLAYER FOR THE LOS ANGELES PHILHARMONIC WAS AT A NEW YEAR'S PARTY 10 YEARS AGO WHEN A VIOLINIST FOR A JOKE WHIPPED OUT A SAW AND BOWED A WHINY VERSION OF AULD LANG SYNE RECALLS THE OBOIST I DIDN'T KNOW WHETHER MY PUNCH WAS SPIKED OR NOT BUT IT GOT MY ATTENTION HE WENT DOWN TO THE LOCAL HARDWARE STORE AND BOUGHT A 7 STANLEY HANDYMAN SAW UNABLE TO USE THE PHILHARMONIC'S PRACTICE ROOM AND NOT WANTING TO ANNOY HIS NEIGHBORS HE FOUND A BENCH ON THE BOARDWALK ALONG THE BEACH AND NOTICED A FUNNY THING PEOPLE WOULD THROW MONEY AT ME THEN A TALENT SCOUT CAME BY AND ASKED IF HE WOULD PLAY ON THE TONIGHT SHOW SOON HE HAD CARVED OUT A SECOND CAREER HE HAD TWO SOLDOUT NIGHTS AT THE HOLLYWOOD BOWL PLAYING AMERICAN MUSIC MEDLEY FOR SAW AND ORCHESTRA MR WEISS EVEN FORMED A RECORDING COMPANY AND DUBBED IT CUT TIME RECORDS SAYS MR WEISS IN THE HANDS OF SOMEONE WITH A TRAINED EAR THE SAW CAN BE A BEAUTIFUL INSTRUMENT COMPOSERS OF CLASSICAL MUSIC HAVE KNOWN THIS FOR YEARS THE LATE ARMENIAN COMPOSER ARAM KHACHATURIAN WROTE A SAW SOLO FOR HIS PIANO CONCERTO IN D GEORGE CRUMB A COMPOSER WHOSE MUSIC OFTEN INCORPORATES UNCONVENTIONAL INSTRUMENTS USED THE SAW IN VOICES OF ANCIENT CHILDREN IT IS BELIEVED THAT SAW MUSIC WAS INVENTED AMID THE DUST AND BOREDOM OF REMOTE LUMBER CAMPS DURING THE 1800S IT LATER BECAME PART OF GOSPEL MUSIC IN BAPTIST CHURCHES JAMES LEONARD 60 A GASSTOVE REPAIRMAN IN SANTA ANA CALIF RECENTLY PUBLISHED THE FIRST HISTORY OF THE MUSICAL SAW TITLED SCRATCH MY BACK HE SAYS THE FATHER OF MODERN AMERICAN MUSICAL SAWING WAS TOM SCRIBNER A FORMER LABOR ORGANIZER FOR THE INTERNATIONAL WORKERS OF THE WORLD WHEN THE MEMBERS OF THIS LEFTWING UNION KNOWN AS THE WOBBLIES LOST THEIR POLITICAL FORCE MR SCRIBNER BROUGHT THE MUSICAL SAW OUT OF THE WOODS AND STARTED A VAUDEVILLE ACT IN THE 1920S DURING THAT DECADE THE MUSICAL SAW CUT DEEPLY INTO THE NATION'S CONSCIOUSNESS ACCORDING TO MR LEONARD BIG BANDS HUNGRY FOR NOVELTY ACTS RECRUITED SAWYERS FROM VAUDEVILLE THE SOUND WAS HEARD ON THE RADIO AND CAUGHT THE EAR OF MANUFACTURERS WHO BEGAN STAMPING OUT BROADCAST QUALITY MUSICAL SAWS SELLING SOME 30000 A YEAR BY THE 1960S THE ART OF MUSICAL SAWING ALL BUT DIED IT WAS KEPT ALIVE BY MR SCRIBNER WHO LIKED THE SOUND TOO MUCH TO PUT DOWN HIS SAW BESIDES HE NEEDED MONEY WEARING A DERBY HAT HE USED TO SIT OUT ON THE STREET IN FRONT OF HIS HOTEL ON THE MAIN STREET OF SANTA CRUZ CALIF CHAINSMOKING AND SAWING THE SONGS HE FIRST LEARNED IN THE LUMBER CAMPS A DEBATE STILL BUZZES AMONG MUSICAL SAWYERS OVER WHETHER THERE SHOULD BE SAWS BUILT JUST FOR MUSICMAKING SAYS MR MINER IF IT CUTS IT'LL PLAY AND MR WEISS INSISTS THAT THE ONES THAT VIBRATE THE BEST ARE CHEAP LITTLE HANDSAWS IF YOU PAY OVER 10 THAT'S TOO MUCH HE SAYS MR LEONARD WHO CLAIMS TO HAVE PRODUCED A UNIQUELY CLEAN SAWING SOUND PLAYS A MODEL MADE IN SWEDEN BY SANDVIK AB THE SWEDISH TOOLMAKER IT CAN SPAN ALMOST FOUR OCTAVES AND THE COMPANY IS SO PROUD OF IT THAT IT CALLS THE SAW WHICH CARRIES A 50 PRICE TAG THE STRADIVARIUS MR LEONARD ESTIMATES THERE ARE NOW OVER 1600 MUSICAL SAWYERS IN THE WORLD ABOUT HALF LIVING IN THE LOS ANGELES AREA HE HELPS ORGANIZE ANNUAL SAWOFFS AT DISNEYLAND WHERE AS MANY AS 35 SAWYERS BOW AND SCRAPE ON THE STAGE SIMULTANEOUSLY A FEW WEEKS AGO AGENTS FOR THE ROCK STAR BILLY IDOL CALLED MR WEISS THE OBOISTCUMSAWYER THEY TOLD HIM MR IDOL WANTED SOMETHING HIS LISTENERS WOULD HEAR AND SAY WHAT IS THAT' SO MR WEISS PACKED UP HIS STANLEY HANDYMAN AND WENT DOWN TO A STUDIO TO PLAY ON ONE OF THE CUTS FOR THE ROCK STAR'S NEXT ALBUM HEAVYMETAL MUSIC EXULTS MR WEISS NOW THAT'S SOMETHING YOU CAN GET YOUR TEETH INTO 9302260040 930226 MARKETING & MEDIA ADVERTISING PHILIP MORRIS TURNS TO FASHION TO DRESS UP VIRGINIA SLIMS SALES BY KEVIN GOLDMAN WHAT A DEAL WANT A BLACK LEATHER BIKER JACKET THAT IS SUPPLE WITH A CINCHED WAIST BELT AND ZIPPERS ALL OVER IT DOESN'T COST A DIME ALL YOU HAVE TO DO IS BUY 350 PACKS OF VIRGINIA SLIMS CIGARETTES THAT AMOUNTS TO ROUGHLY 78750 AND 7000 SMOKES THE LEATHER JACKET IS ONE OF NINE ITEMS OFFERED IN PHILIP MORRIS'S VIRGINIA SLIMS VWEAR LINE THE ARTICLES INCLUDING LEATHER BACKPACKS SUNGLASSES VESTS AND OF COURSE CIGARETTE LIGHTERS MUST BE ORDERED BY MAIL AND NO CASH PLEASE THE VWEAR LINE IS THE LATEST ATTEMPT BY THE CIGARETTE INDUSTRY TO BUILD BRAND LOYALTY BY ACTUALLY REWARDING SMOKING IT IS ALSO A WILY METHOD TO BUILD UP A DATA BANK OF VIRGINIA SLIMS SMOKERS PEOPLE WHO MAIL IN COUPONS MUST PROVIDE THEIR NAMES ADDRESSES AND PHONE NUMBERS AS WELL AS THE BRANDS THEY REGULARLY SMOKE NOT A BAD STRATEGY GIVEN THE PROSPECTS THAT THE FEDERAL GOVERNMENT MIGHT ONE DAY OUTLAW ALL TOBACCO ADVERTISING PREDICTABLY ANTITOBACCO CRITICS DENOUNCE THE VIRGINIA SLIMS GIVEAWAY AS ENCOURAGING ACCELERATED SMOKING THE MORE YOU PUFF THE BETTER THE PRIZE MORE IMPORTANTLY THEY CONDEMN THE PROMOTIONAL CAMPAIGN AS ENCOURAGING YOUNGSTERS THE FREEBIES INCLUDE MERCHANDISE SUCH AS BLACK LEATHER BACKPACKS AND THE TOUGH BIKER JACKET THAT CLEARLY APPEALS TO TEENAGERS DESPITE PHILIP MORRIS'S STRONG CONTENTION THAT IT IS ONLY SOLICITING ADULT SMOKERS WE'RE OUTRAGED IT'S PATHETIC SAYS JOE CHERNER PRESIDENT OF SMOKEFREE EDUCATIONAL SERVICES AN ANTISMOKING GROUP THAT TARGETS SCHOOLS IN NEW YORK IT SHOWS HOW LOW THE TOBACCO INDUSTRY WILL STOOP TO ADDICT YOUNG GIRLS BUT ANTISMOKING CRUSADERS SEEM TO ALWAYS LEVEL SUCH CHARGES AT TOBACCO COMPANIES NO MATTER WHAT APPROACH A NEW CAMPAIGN TAKES CAN I ASK YOU A QUESTION WHY DO YOU ALWAYS CALL THOSE PEOPLE A PHILIP MORRIS SPOKESWOMAN SAYS IN A REFERENCE TO THE ANTISMOKING FORCES CIGARETTES ARE AFTER ALL ENTIRELY LEGAL THE FEDERAL GOVERNMENT HAS SANCTIONED THEIR SALE AND ALLOWS THEIR ADVERTISING IN THE PRINT MEDIA EVEN GOING SO FAR AS TO LET CIGARETTE MAKERS DEDUCT 100 OF THEIR AD SPENDING PHILIP MORRIS INSISTS ITS VIRGINIA SLIMS BRAND TARGETS ONLY WOMEN OVER 21 YEARS OLD THE SPOKESWOMAN SAYS THE PURPOSE OF ADVERTISING IS TO ATTRACT ADULT SMOKERS TO A PARTICULAR BRAND BY PROVIDING THEM WITH AN INCENTIVE TO SWITCH THE ARGUMENT MOST CIGARETTE COMPANIES MAKE WHENEVER THEY COME UNDER ATTACK FOR CAMPAIGNS LIKE THE NEW ONE ALMOST 30000 INDIVIDUALS SWITCH BRANDS OF CIGARETTES EVERY DAY THE COMPANY SAYS REPRESENTING SALES OF MORE THAN 10 BILLION ANNUALLY ADVERTISING REMAINS THE MOST EFFECTIVE WAY TO REACH OUR CUSTOMERS AND POTENTIAL CUSTOMERS SAYS THE SPOKESWOMAN ANTISMOKING GROUPS POINT OUT HOWEVER THAT TEENAGERS GRAVITATE TO THE KIND OF YOUNGADULT APPEAL THAT VIRGINIA SLIMS USES AND THE LATEST PROMOTIONAL EFFORT APPEARS IN OUTLETS WHERE TEENAGERS OFTEN TURN FOR FASHION TIPS INCLUDING CURRENT ISSUES OF SUCH MAGAZINES AS GLAMOUR AND MADEMOISELLE THE VWEAR FOR VIRGINIA SLIMS IS SPLASHED ACROSS COLORFUL PULLOUT ADS WHICH ALSO APPEAR IN THE NEW YORK TIMES SUNDAY NEWSPAPER ON BUS SHELTERS AND ATOP TAXI CABS THE MICROCATALOG FEATURES SHOTS OF LACE NECKTIES FOR SMOKING 40 PACKS A PEARL BRACELET 60 PACKS AND PHOTOGRAPHS OF THIN SMILING YOUNG WOMEN SPORTING BOLD TAXI YELLOW TSHIRTS 30 PACKS ONLY ONE OF THEM IS ACTUALLY HOLDING A LIT SLIMS CIGARETTE A YELLOW AND BLACK CAP YOURS FOR RUNNING THROUGH 35 PACKS OR ABOUT 79 WORTH OF CIGARETTES IS WHERE YOUR HEAD SHOULD BE THE PULLOUT SAYS IN FACT ALL OF THE MERCHANDISE APPEALS TO A WOMAN'S SENSE OF PHYSICAL BEAUTY AND HOW SHE COULD ENHANCE HER OUTWARD APPEARANCE SO MUCH FOR YOU'VE COME A LONG WAY BABY THE SLOGAN OF A CERTAIN AGE OF VIRGINIA SLIMS FASHION HAS ALWAYS BEEN AN ELEMENT WITH VIRGINIA SLIMS SAYS ELLEN MERLO VICE PRESIDENT OF MARKETING SERVICES AT PHILIP MORRIS WE'RE BUILDING THIS CAMPAIGN AROUND THE FASHION ATTITUDE OF OUR SMOKERS ASKED WHETHER THE ITEMS DO APPEAL TO TEENAGERS THE PHILIP MORRIS SPOKESWOMAN SAYS TEENAGERS AREN'T ABLE TO GET THEM WHY BECAUSE THE MAILIN COUPON REQUESTS USERS TO SIGN A PLEDGE THAT SAYS I CERTIFY I AM A CIGARETTE SMOKER 21 YEARS OF AGE OR OLDER AND WRITE IN THEIR BIRTHDAY THE PLEDGE INCLUDES ANOTHER VOW I AM ALSO WILLING TO RECEIVE FREE SAMPLES OF CIGARETTES AND OTHER INCENTIVE ITEMS IN THE MAIL OF COURSE IT IS VIRTUALLY IMPOSSIBLE TO CHECK THE VALIDITY OF SUCH A FORM SUZANNE LEVAN THE COMPANY'S VICE PRESIDENT OF PREMIUM BRANDS SAYS IF THE SIGNATURE APPEARS CHILDLIKE THE COMPANY WOULD SEEK TO FURTHER VERIFY THE INDIVIDUAL'S CLAIMED AGE FURTHER PHILIP MORRIS SAYS IT IS FERVENTLY AGAINST UNDERAGE SMOKING WE'RE ON THE SAME SIDE AS THE ANTISMOKERS ON THIS ISSUE THE SPOKESWOMAN MAINTAINS THIS BEATS OUR EMPHYSEMA SLIMS LINE BY A MILE WITH THE SLOGAN YOU'VE COUGHED UP A LONG TIME BABY' SAYS ALAN BLUM CHAIRMAN OF DOCTORS OUGHT TO CARE A HEALTH ADVOCACY GROUP BASED IN HOUSTON THIS DEFINITELY APPEALS TO TEENAGERS NO MATTER WHAT ANYONE SAYS KRAFT GENERAL FOODS CONSOLIDATED AN ESTIMATED 100 MILLION IN MEDIABUYING ON LOCAL TELEVISION WITH GREY ADVERTISING NEW YORK ENDING A REVIEW THAT HAD ALSO INCLUDED WPP GROUP'S OGILVY & MATHER AND YOUNG & RUBICAM BOTH IN NEW YORK THE ASSIGNMENT IS EFFECTIVE WITH THIRDQUARTER BUYING KRAFT A UNIT OF PHILIP MORRIS COS DECLINED TO DISCUSS BILLINGS OTHER THAN TO NOTE IT HAS CUT BACK ON LOCAL TV BY 20 SINCE 1990 AS A RESULT THE THREE AGENCIES HADN'T BEEN ABLE TO EARN A FAIR RETURN ON THE BUSINESS GREY ALSO BUYS KGF'S MEDIA IN CHILDREN'S SHOWS OTHER MEDIA ASSIGNMENTS INCLUDING PRINT AT Y&R RADIO AT OGILVY AND ADULT BROADCAST SPLIT BETWEEN D'ARCY MASIUS BENTON & BOWLES AND LEO BURNETT CO WEREN'T AFFECTED KGF SAID A PUBLICINTEREST GROUP IS URGING THE FEDERAL TRADE COMMISSION TO MOVE AGAINST SEVERAL COMPANIES WHOSE ADS MAKE CLAIMS THAT DON'T MEET NEW FEDERAL STANDARDS FOR FOOD LABELS IN A LETTER TO THE FTC THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST CALLED THE HEALTH CLAIMS OF FIVE ADVERTISERS MISLEADING BECAUSE THEY DON'T MEET LABELING RULES THAT THE FOOD AND DRUG ADMINISTRATION AND US DEPT OF AGRICULTURE ISSUED EARLIER THIS YEAR THE NEW LABELING RULES DON'T TAKE EFFECT UNTIL NEXT YEAR CSPI COMPLAINED ABOUT THE FOLLOWING ADVERTISERS KRAFT GENERAL FOODS FOR SAYING IN ADS FOR LENDER'S BAGELS THAT THEY HAVE 20 MORE COMPLEX CARBOHYDRATES THAN MANY BREAKFAST CEREALS KELLOGG CO FOR CLAIMING THAT RICE KRISPIES TREATS CEREAL HAS LESS SUGAR THAN MOST KIDS' CEREALS EGGLAND'S BEST INC KING OF PRUSSIA PA FOR CLAIMING THAT THEIR EGGS WON'T INCREASE SERUM CHOLESTEROL FLORIDA DEPARTMENT OF CITRUS LAKELAND FLA FOR CLAIMING THAT VITAMIN C IN ORANGE JUICE MAY REDUCE THE RISK OF HEART DISEASE AND BERTOLLI USA FOR SAYING ITS OLIVE OIL DOESN'T HAVE CHOLESTEROL KRAFT SAID ITS ADS COMPLY WITH CURRENT FDA LABEL STANDARDS AND WOULD COMPLY WITH NEW ONES WHEN THEY TAKE EFFECT KELLOGG SAID IT WOULD COMPLY WITH ANTICIPATED FTC POLICY GUIDELINES ON HEALTH CLAIMS THE FLORIDA DEPT OF CITRUS SAID ITS ADS PRESENT A BALANCED NUTRITIONAL MESSAGE ROBERT FUHRMAN PRESIDENT OF EGGLAND'S BEST SAID THE COMPANY HAS ALREADY MET WITH THE FTC TO SUBSTANTIATE ITS ADVERTISING CLAIMS HE SAID THE COMPANY ADDED A STATEMENT TO ITS ADS SPECIFICALLY STATING THAT THEY AREN'T THEMSELVES LOW IN CHOLESTEROL BERTOLLI OFFICIALS COULDN'T BE REACHED ANNE MAHAR THE FTC'S ASSISTANT DIRECTOR FOR ADVERTISING PRACTICES SAID THE FTC WANTS TO HARMONIZE ITS AD RULES WITH THE LABEL RULES BUT WHAT THE PRECISE MATCH WILL BE IS A QUESTION HYATT HYATT CORP NARROWED ITS SEARCH FOR AN AGENCY FOR ITS ESTIMATED 25 MILLION ACCOUNT TO THREE AGENCIES OMNICOM GROUP'S BBDO LEO BURNETT CO CHICAGO AND WPP GROUP'S OGILVY & MATHER NEW YORK INDUSTRY EXECUTIVES SAID HYATT DECLINED TO COMMENT 9302260039 930226 CATERPILLAR SALE TO RUSSIAN FIRM PEORIA ILL CATERPILLAR INC SAID THE US EXPORTIMPORT BANK APPROVED AN 862 MILLION LOAN TO RUSSIA'S LEADING NATURALGAS CONCERN GAZPROM TO BUY 295 CATERPILLAR TRACTORS THE EQUIPMENT WILL BE USED TO EXPAND EXPLORATION DRILLING AND DISTRIBUTION ON THE YAMAL PENINSULA GAS FIELDS NORTH OF THE ARCTIC CIRCLE THE COMPANY SAID 9302260038 930226 WHO'S NEWS PROMUS COS PROMUS COS MEMPHIS TENN LAURANCE B LACAFF 45 YEARS OLD WAS CHOSEN TO HEAD THE COMPANY'S NEW RIVERBOAT CASINO ENTERTAINMENT DIVISION HE WAS PRESIDENT AND CHIEF OPERATING OFFICER OF HARRAH'S CASINO NORTHERN NEVADA DIVISION LOUIS J PHILLIPS 55 FORMERLY SENIOR VICE PRESIDENT AND GENERAL MANAGER OF HARRAH'S LAKE TAHOE WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF HARRAH'S NORTHERN NEVADA DIVISION 9302260037 930226 OTC FOCUS NASDAQ INDEX RISES DESPITE 20 DROP IN AMGEN THREE NEW ISSUES PUT OFF BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS RALLIED DESPITE A 20 PLUNGE IN BIOTECHNOLOGY LEADER AMGEN BUT CONTINUED WORRIES ABOUT THE HEALTHCARE INDUSTRY DERAILED THREE NEW ISSUES WORD FROM THOUSAND OAKS CALIFBASED AMGEN LATE WEDNESDAY THAT ITS FIRSTQUARTER EARNINGS WILL FALL SHORT OF EXPECTATIONS HAD INSPIRED FEARS AMONG MANY TRADERS THAT THE NASDAQ MARKET WAS HEADED FOR ANOTHER TUMBLE ON MONDAY A DISAPPOINTING DISCLOSURE FROM ANOTHER MAJOR BIOTECH COMPANY SYNERGEN CONTRIBUTED TO A DEEP SELLOFF IN MEDICAL TECHNOLOGY STOCKS BOULDER COLOBASED SYNERGEN THAT DAY PLUNGED 68 WHILE THE OVERALL NASDAQ MARKET LOST NEARLY 17 BUT WHILE AMGEN SHARES WENT INTO A SHARP RETREAT YESTERDAY MORNING THE OVERALL MARKET REMAINED SOLID THE NASDAQ COMPOSITE INDEX CLOSED WITH A GAIN OF 461 OR 070 TO 66707 ON WEDNESDAY THE INDEX JUMPED NEARLY 11 POINTS ITS BIGGEST ONEDAY ADVANCE IN FIVE MONTHS AMGEN FINISHED WELL ABOVE ITS WORST LEVELS OF THE SESSION BUT WAS STILL DOWN 9 1/4 TO 37 AT THE CLOSE IT TRADED AS LOW AS 31 3/4 IN THE MORNING ALMOST 22 MILLION OF ITS SHARES CHANGED HANDS COMPARED WITH AVERAGE DAILY VOLUME OF TWO MILLION BUT ELSEWHERE IN THE BIOTECH GROUP PRICES FINISHED MIXED CAMBRIDGE MASSBASED BIOGEN JUMPED 1 1/4 TO 29 1/4 AND SEATTLE'S IMMUNEX ADDED 2 TO 41 1/4 WHILE CHIRON OF EMERYVILLE CALIF LOST 1/2 TO 48 3/4 AND SYNERGEN EASED 1/4 TO 14 3/4 ADVANCING NASDAQ ISSUES OUTPACED DECLINERS 1411 TO 1158 NASDAQ NATIONAL MARKET SYSTEM VOLUME TOTALED 227510000 SHARES DOWN SOMEWHAT FROM WEDNESDAY'S TORRID 249450000 PRICES CREPT HIGHER ON THE BIG BOARD THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 088 OR 036 TO 24338 THE DOW JONES INDUSTRIAL AVERAGE ROSE 864 OR 026 TO 336514 CONSIDERING THE AMGEN NERVOUSNESS OVERNIGHT I THINK THE MARKET DID PRETTY WELL SAID TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY PEOPLE WERE BRACING FOR THE WORST AND IT DIDN'T HAPPEN HE SAID OBSERVERS SAID THE RELATIVE STABILITY OF BIOTECH STOCK PRICES WAS PROBABLY TIED TO THE BATTERING THE GROUP HAS RECEIVED IN RECENT DAYS WHOEVER HAS WANTED TO SELL IS PROBABLY OUT OF THEM AT THIS POINT SAID LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO BESIDES THE DISAPPOINTMENTS FROM INDIVIDUAL MEDICAL TECHNOLOGY STOCKS RECENT LOSSES IN THE GROUP HAVE ALSO BEEN ATTRIBUTED TO FEARS THAT HEALTHCARE INDUSTRY PROFITS WILL BE DEPRESSED BY CHANGES THE CLINTON ADMINISTRATION PLANS TO UNVEIL THIS SPRING THE POSTPONEMENT OF THREE HEALTHCARERELATED INITIAL PUBLIC OFFERINGS YESTERDAY WAS PEGGED BY ANALYSTS TO WORRIES ABOUT THE CLINTON PLAN NEW ISSUES THAT WERE TO LIST ON NASDAQ WERE DELAYED BY NEUREX OF MENLO PARK CALIF AND OCLASSEN PHARMACEUTICALS OF SAN RAFAEL CALIF BOTH DRUG DEVELOPERS AND BY VENDELL HEALTHCARE A NASHVILLE TENN PSYCHIATRIC HOSPITAL OPERATOR IN ALL THREE CASES UNDERWRITERS CITED THE POOR STOCK MARKET CONDITIONS BUT JIM MCCAMANT EDITOR OF MEDICAL TECHNOLOGY STOCK LETTER A BERKELEY CALIF NEWSLETTER SAID THESE COMPANIES MIGHT GET ANOTHER STAB AT COMPLETING AN OFFERING LATER THIS YEAR HE EXPECTS MEDICALRELATED SHARES TO REBOUND IN THE MONTHS AHEAD MR MCCAMANT SAID THE PRESIDENT'S PROPOSALS MIGHT ACTUALLY BENEFIT BIOTECH COMPANIES GOVERNMENT EFFORTS TO WIDEN COVERAGE TO THE UNINSURED SHOULD INCREASE THE OVERALL SIZE OF THE DRUG MARKET AND HE SAID BIOTECHBASED DRUGS CAN HELP IN MR CLINTON'S EFFORT TO TRIM HEALTHCARE COSTS NOVELL JUMPED 2 5/8 TO 29 1/4 THE PROVO UTAH NETWORKING PRODUCTS CONCERN POSTED FIRSTQUARTER EARNINGS OF 23 CENTS A SHARE UP FROM 17 CENTS A SHARE A YEAR AGO AND JUST ABOVE THE 22CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM LEHMAN BROTHERS AND SALOMON BROTHERS BOTH UPGRADED RATINGS ON THE STOCK TO BUY YESTERDAY MORNING THE FREMONT CALIF COMPUTER DISK DRIVE COMPANY IN PART BLAMED THE WEAK RESULTS ON SLACK DEMAND AND COSTS ASSOCIATED WITH A LAWSUIT IT HAS FILED AGAINST NOMAI A FRENCH COMPANY SYQUEST ALLEGES STOLE SOME OF ITS PROPRIETARY TECHNOLOGY NOMAI HAS SAID THE SUIT LACKS MERIT NOEL GROUP ADDED 1/2 TO 6 3/8 THE COMPANY AGREED IN PRINCIPLE TO ACQUIRE BIG BOARDLISTED BELDING HEMINWAY FOR 3450 A SHARE OR A TOTAL OF 67 MILLION IN CASH NOEL BASED IN NEW YORK IS A HOLDING COMPANY WITH VARIOUS INTERESTS BELDING ALSO OF NEW YORK MAKES SEWING SUPPLIES AND HAS INTERESTS IN REAL ESTATE AND CELLULAR PHONE LICENSES IT JUMPED 1 3/8 TO 31 7/8 NATIONAL REHABILITATION ROSE 1/2 TO 11 1/2 THE BRENTWOOD TENN PROVIDER OF OUTPATIENT REHABILITATION SERVICES REPORTED FOURTHQUARTER EARNINGS OF 16 CENTS A SHARE COMPARED WITH EARNINGS FROM OPERATIONS OF 10 CENTS A YEAR AGO LAWYERS TITLE ADVANCED 2 1/2 TO 23 1/4 AFTER IT POSTED FOURTHQUARTER EARNINGS OF 153 A SHARE REVERSING A YEAREARLIER LOSS OF 97 CENTS SEPARATELY THE RICHMOND VA TITLE INSURANCE CONCERN DECLARED A 3FOR2 STOCK SPLIT PAYABLE MAY 6 TO STOCK OF RECORD APRIL 15 NEWCOR CLIMBED 1 7/8 TO 10 1/4 FIRSTQUARTER EARNINGS AT THE TROY MICH MACHINE TOOL CONCERN ROSE TO 33 CENTS A SHARE FROM SEVEN CENTS A YEAR EARLIER SALES ROSE TO 273 MILLION FROM 15 MILLION BABBAGE'S JUMPED 1 7/8 TO 23 5/8 DONALDSON LUFKIN & JENRETTE IS SAID TO HAVE INITIATED COVERAGE OF THE DALLAS SOFTWARE RETAILER WITH A VERY ATTRACTIVE RATING 9302260036 930226 BUSINESS BRIEF MCCAW CELLULAR COMMUNICATIONS ALLDIGITAL CELLULAR PHONE SERVICE BEGINS OPERATING MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH SAID IT HAS BEGUN OPERATING COMMERCIALLY THE NATION'S FIRST ALLDIGITAL CELLULARPHONE SERVICE MCCAW WHICH OPERATES UNDER THE NAME CELLULAR ONE IN MANY PARTS OF THE COUNTRY SAID ITS DIGITAL SERVICE IS CURRENTLY OFFERED ONLY IN ORLANDO FLA DIGITAL TECHNOLOGY ALLOWS CELLULAR PHONE USERS TO GET HIGHER QUALITY SOUND AND BETTER RELIABILITY AT LOWER PERMINUTE CHARGES COMPARED TO SYSTEMS BASED ON AN OLDER ANALOG TECHNOLOGY THE COMPANY SAID THE SYSTEM COST MORE THAN 15 MILLION TO INSTALL IN FLORIDA ACCORDING TO MCCAW AND ALREADY HAS 1000 SUBSCRIBERS MCCAW PLANS TO BEGIN OFFERING SIMILAR DIGITAL SERVICES IN SEATTLE AND NEW YORK BY SUMMER SEVERAL MONTHS BEHIND SCHEDULE A COMPANY SPOKESMAN SAID MCCAW'S PLANS WERE DELAYED BECAUSE OF SYSTEM TESTING WE WANTED TO MAKE SURE THESE THINGS WORKED PROPERLY BEFORE THEY'RE TURNED ON HE SAID CELLULAR PHONE USERS WHO WANT TO USE THE NEW SERVICE MUST BUY SPECIALLY MADE DIGITAL PHONES WHICH ARE GENERALLY SOLD AT PRICES COMPETITIVE WITH STANDARD CELLULAR MODELS HE SAID 9302260035 930226 BUSINESS BRIEF MITCHELL ENERGY & DEVELOPMENT COMPANY BOOSTS ITS BUDGET FOR DRILLING THIS FISCAL YEAR MITCHELL ENERGY & DEVELOPMENT CORP SAID IT WILL INCREASE ITS FISCAL 1994 CAPITAL EXPENDITURES FOR DRILLING BY ABOUT 43 COMPARED WITH FISCAL 1993 BECAUSE THE OUTLOOK FOR NATURAL GAS HAS IMPROVED THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY BASED IN THE WOODLANDS TEXAS BUDGETED 35 MILLION COMPARED WITH SPENDING OF 244 MILLION FOR FISCAL 1993 WHICH ENDED JAN 31 FURTHER MITCHELL'S DRILLING PARTNERSHIP MEC DEVELOPMENT LTD WILL INCREASE ITS DRILLING SPENDING TO 70 MILLION FROM 50 MILLION OVERALL MITCHELL'S CONSOLIDATED BUDGET FOR FISCAL 1994 WAS DOWN ABOUT 7 TO 2266 MILLION FROM 243 MILLION LAST YEAR THE SMALLER BUDGET REFLECTS AN EXPECTED DECREASE IN EXPENDITURES REQUIRED TO COMPLETE A NEW GAS STORAGE FACILITY NEAR BEAUMONT TEXAS THE MAJOR CAPITAL COSTS FOR THE FACILITY WERE INCURRED IN THE PAST TWO FISCAL YEARS 9302260034 930226 LEISURE & ARTS ON SPORTS FREE AT LAST SORT OF BY FREDERICK C KLEIN ON MONDAY A SIZABLE NUMBER OF EMPLOYEES OF THE NATIONAL FOOTBALL LEAGUE ONES WHO PERFORM THEIR DUTIES IN HELMETS AND SHOULDER PADS WILL BECOME FULLFLEDGED AMERICANS THIS IS TO SAY THAT FOR THE FIRST AND MAYBE ONLY TIME IN THEIR SPORTS CAREERS THEY WILL HAVE THE CHANCE TO CHOOSE THEIR EMPLOYERS THE VEHICLE FOR THEIR FREEDOM RIDE IS THE LABOR AGREEMENT RECENTLY WORKED OUT BETWEEN THEIR UNION AND TEAM OWNERS TO CALL THE NEGOTIATIONS THAT LED TO IT AMIABLE WOULD BE A SERIOUS OVERSTATEMENT FOR MOST OF THEIR FIVEYEAR DURATION BEGINNING IN 1987 THERE WERE NO NEGOTIATIONS AT ALL WERE IT NOT FOR THE UNION'S SUCCESS AS A PLAINTIFF IN A NUMBER OF LENGTHY BITTER AND COSTLY ANTITRUST LAWSUITS AGAINST THE LEAGUE THERE'D BE NO AGREEMENT TODAY SO ONE MIGHT EXPECT THAT WHEN THE OPPORTUNITY TO CHANGE TEAMS FINALLY AROSE FOR THE 350 OR SO VETERAN PLAYERS WHO QUALIFY AS UNRESTRICTED FREE AGENTS PLUS THE 300 OR SO MORE WHO CAN MOVE WITH CONDITIONS THERE WOULD BE LARGESCALE ROSTER CHANGES IN THE NFL A SORT OF FOOTBALL JAILBREAK SO ONE MIGHT BE WRONG THAT'S THE JUDGMENT OF THREE MEN MOST BROADLY AFFECTED BY THE NEW PACT THEY ARE THE SPORTS AGENTS BOB WOOLF OF BOSTON STEVE ZUCKER OF CHICAGO AND RALPH CINDRICH OF PITTSBURGH WHO BETWEEN THEM REPRESENT ABOUT 100 NFL PLAYERS YES THEY AGREE FREE AGENCY IS LONG OVERDUE IN THE GRIDIRON SPORT AND YES IT'LL HELP BOOST SALARIES FOR SOME BUT THEY ALSO OPINE THAT THE NUMBER OF PLAYERS WHO'LL SWITCH UNIFORMS WON'T BE LARGE PROBABLY AMOUNTING TO NO MORE THAN THREE OR FOUR PER CLUB IN THE 28TEAM CIRCUIT BASED ON A 47MAN NFL ROSTER THAT RATE ABOUT 7 WOULD BE ABOUT THE SAME AS THAT FOR MAJOR LEAGUE BASEBALL WHEN YOU GO THROUGH THE INS AND OUTS OF THE NEW CONTRACT THE NUMBER OF PLAYERS WHO ARE TRULY FREE SHRINKS AND SOME OF THOSE GUYS ARE GOING TO HAVE TO FACE THE FACT THAT NO ONE OUT THERE ESPECIALLY WANTS THEM SAYS WOOLF IN ITS FIRST YEAR AT LEAST THE INS AND OUTS OF THE PACT ARE ENOUGH TO TEST A LAWYER WHICH INCIDENTALLY EACH OF THE THREE MEN IS FOR EXAMPLE TEAMS WILL HAVE THE RIGHT TO MATCH OTHER TEAM'S BIDS FOR THE 300ODD PLAYERS WITH THREE OR FOUR YEARS OF NFL SERVICE WHOSE CONTRACTS HAVE EXPIRED AND CAN CLAIM DRAFTCHOICE COMPENSATION FOR ONES THEY LOSE JUST LIKE IN THE BAD OLD DAYS WHEN NOBODY MOVED AND ALL THE UNRESTRICTED FREE AGENTS UNSIGNED PLAYERS WITH FIVE OR MORE YEARS IN THE LEAGUE AREN'T REALLY UNRESTRICTED EACH TEAM CAN NAME A FRANCHISE PLAYER WHOM IT CAN RETAIN BY PAYING HIM 120 OF HIS PREVIOUS YEAR'S SALARY OR THE AVERAGE OF THE LEAGUE'S TOP FIVE MEN AT HIS POSITION WHICHEVER IS HIGHER AND RETAINS RIGHTS OF FIRST REFUSAL ON TWO MORE SOCALLED TRANSITION PLAYERS THOSE QUALIFICATIONS PLUS RETIREMENTS HAVE TRIMMED THE ACTUAL UNRESTRICTED LIST TO ABOUT 250 MOREOVER THE FOUR TEAMS THAT WERE SEMIFINALISTS IN THE LAST SUPER BOWL TOURNAMENT CAN SIGN ONLY AS MANY FREE AGENTS AS THEY LOSE AND OTHER RESTRICTIONS APPLY TO THE SEASON'S NEXT FOUR BEST SQUADS CONSIDERING THAT THE NFL WAS ON THE ROPES IN COURT AND GOING DOWN FOR THE COUNT IT WORKED OUT A TERRIFIC DEAL FOR ITSELF CONTENDS CINDRICH I THINK THE VAST MAJORITY OF EMPLOYERS IN THIS COUNTRY WOULD LOVE THIS CONTRACT WHO WILL BE FREE AND WHO WON'T DEPENDS ON WHOM THE TEAMS CHOOSE TO PROTECT BUT THE AGENTS SAY THAT HOWEVER THE LISTS ARE DRAWN SOME PRIME TALENT WILL BE ON THE AUCTION BLOCK CINDRICH AND ZUCKER SAY THEY THINK THE BIDDING WILL BEGIN SWIFTLY NEXT WEEK TRIGGERED BY AGGRESSIVE UNITS SUCH AS THE LOS ANGELES RAIDERS AND SAN DIEGO CHARGERS WOOLF BELIEVES THAT THE CLUBS UNUSED TO COMPETING FOR TALENT WILL HANG BACK AT FIRST WAITING TO SEE HOW THINGS GO BUT ALL AGREE THAT ONCE THE AUCTION STARTS IT WILL QUICKLY ESCALATE AND THAT LIKE IN BASEBALL AND BASKETBALL THE STARS WILL BE THE MAIN FOCUS ONE SUCH IS SURE TO BE REGGIE WHITE THE PHILADELPHIA EAGLES MONSTER DEFENSIVE LINEMAN WHO AS ONE OF THE PLAINTIFFS IN THE COURT CASE THAT SPURRED THE SETTLEMENT CAN'T BE RESTRICTED OTHER POTENTIAL OBJECTS OF FERVENT DESIRE ARE NEIL SMITH A DEFENSIVE LINEMAN FOR THE KANSAS CITY CHIEFS PAUL GRUBER AN OFFENSIVE LINEMAN FOR THE TAMPA BAY BUCCANEERS WILBER MARSHALL A WASHINGTON REDSKINS LINEBACKER QUARTERBACKS STEVE BEUERLINE OF THE DALLAS COWBOYS AND DON MAJKOWSKI OF THE GREEN BAY PACKERS AND GARY CLARK A REDSKIN WIDE RECEIVER BUT THE AGENTS NOTE THAT MANY ALIST PLAYERS WILL FOR VARIOUS REASONS STAY WITH THEIR PRESENT TEAMS AND THAT MOST MOVEMENT WILL COME FROM USEFUL BUT NONSTAR TYPES WHOSE MOTIVES MAY BE MORE THAN FINANCIAL YOU'LL HAVE BACKUP PLAYERS WHO'LL GO WHERE THEY THINK THEY CAN START SAYS ZUCKER YOU'LL HAVE PLAYERS WHO WANT TO PERFORM IN THEIR HOMETOWNS ONES WHO WANT TO REJOIN FORMER COACHES THEY LIKED ONES WHO WANT TO GET AWAY FROM COACHES THEY DON'T LIKE THE TEAMS THAT DO THEIR HOMEWORK WILL KNOW WHO THOSE PEOPLE ARE AND BE READY TO ACT ACCORDINGLY FREE AGENCY WILL BRING CHANGES TO THE LEAGUE'S SALARY STRUCTURE SOME OF WHICH ARE OVERDUE THE AGENTS BELIEVE THEY NOTE THAT WHILE AVERAGE NFL PAY HAS RISEN SMARTLY OVER THE PAST FEW YEARS FROM 415000 A YEAR TO 496000 IN THE 199192 PERIOD ALONE MUCH OF THE GAIN IS ATTRIBUTABLE TO THE HUGE SUMS OWNERS PAID ROOKIE NO 1 DRAFT CHOICES WHOSE HOLDOUT THREATS WERE THE MOST CREDIBLE WITH VETS NOW FREE AND ROOKIE SALARIES CAPPED UNDER THE NEW AGREEMENT JUSTICE SHOULD BE SERVED THEY SAY GUARANTEED CONTRACTS THOUGH RARELY LASTING MORE THAN THREE YEARS WILL COME TO A LEAGUE THAT HAS FEW OF THESE SO WILL THINGS LIKE NOTRADE CLAUSES AND WOOLF WHO HAS BASEBALL AND BASKETBALL CLIENTS AS WELL AS FOOTBALLERS THINKS THAT THE SALARY BOOSTS THE NFL FREE AGENTS WILL COMMAND WILL EXCEED EXPECTATIONS PROBABLY EVEN THEIR OWN ALL IT WILL TAKE IS ONE OWNER WHO WANTS TO WIN AND DOESN'T CARE WHAT IT COSTS THE OTHERS WILL THINK THEY HAVE TO COMPETE OR FACE THE CONSEQUENCES HE SAYS TO THE QUESTION OF WHO THAT MIGHT BE WOOLF POSES ANOTHER QUESTION ARE ANY NFL TEAM OWNERS NAMED TED HE LAUGHS 9302260033 930226 BUSINESS BRIEF ROLLINS ENVIRONMENTAL SERVICES INC SECONDPERIOD NET IS LIKELY TO SHOW SUBSTANTIAL DROP ROLLINS ENVIRONMENTAL SERVICES INC WILMINGTON DEL SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE SUBSTANTIALLY BELOW YEAREARLIER RESULTS BECAUSE OF THE RECESSION AND THE COSTS OF MEETING CERTAIN ENVIRONMENTAL REGULATIONS ROLLINS WHICH RELEASED THE NEWS AFTER THE STOCK MARKET CLOSED YESTERDAY ALSO SAID IT VOLUNTARILY ENDED ITS DEER PARK TEXAS INCINERATION OPERATIONS BECAUSE WASTE MATERIAL PROCESSED THERE UNDER FEDERAL GUIDELINES WOULD HAVE EXCEEDED ALLOWED LIMITS THE COMPANY SAID MONITORS DETECTED THE MATERIAL AVOIDING A DISCHARGE ROLLINS SAID IT'S INVESTIGATING THE IDENTITY OF THE WASTE GENERATOR BUT COMPANY OFFICIALS WEREN'T AVAILABLE TO IDENTIFY THE TYPE OF WASTE OR TO COMMENT ON THE COMPANY'S EARNINGS OUTLOOK THE COMPANY SAID IT PLANS TO TEMPORARILY SHUT DOWN THE PLANT FOR REPAIR AND MAINTENANCE IN THE YEAREARLIER SECOND QUARTER ENDED MARCH 31 THE COMPANY HAD NET INCOME OF 86 MILLION OR 14 CENTS A SHARE ON REVENUE OF 632 MILLION 9302260032 930226 INTERNATIONAL ITALIAN COALITION UNDER AMATO SURVIVES A VOTE BUT SCANDAL BRINGS DOWN MORE LEADERS SWELLING NATION'S POLITICAL CRISIS BY CRAIG FORMAN AND MAUREEN KLINE STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN ITALY'S FRAGILE COALITION GOVERNMENT SURVIVED A NOCONFIDENCE VOTE IN PARLIAMENT BUT THE ALLEGED INVOLVEMENT OF SEVERAL MORE PUBLIC FIGURES IN A WIDENING CORRUPTION SCANDAL DEEPENED THE COUNTRY'S POLITICAL CRISIS SOCIALIST PREMIER GIULIANO AMATO'S GOVERNMENT WON THE PARLIAMENTARY CONFIDENCE VOTE BY A 310TO265 MARGIN THE BELEAGUERED MR AMATO WHO HAS STRUGGLED TO KEEP A FULL CABINET AS THREE MEMBERS HAVE RESIGNED IN THE UNFOLDING CLEAN HANDS SCANDAL WAS FORCED TO CALL THE VOTE AFTER LAST WEEKEND'S CABINET RESHUFFLING WITH REVELATIONS FROM THE SCANDALS SHOCKING THE COUNTRY DAILY THE GOVERNMENT TRIED TO PUT THE CRISIS BEHIND IT CITING THE RESULTS OF THE CONFIDENCE VOTE BUT THERE'S STUBBORN SPECULATION ABOUT FURTHER ARRESTS TO COME IN THE CORRUPTION SCANDAL AND ITALIAN FINANCIAL MARKETS CONTINUE TO REEL FROM THE POLITICAL CRISIS WHICH HAS SENT THE LIRA PLUMMETING THOUGH THE LIRA HIT RECORD LOWS ON WEDNESDAY IT STRENGTHENED AFTER THE CONFIDENCE VOTE TO 1574 LIRE TO THE DOLLAR AND 963 TO THE MARK UP FROM 1591 LIRE AND 983 LIRE ON WEDNESDAY ITALIAN CENTRAL BANK DIRECTORGENERAL LAMBERTO DINI SOUGHT TO REASSURE THE MARKETS SAYING THE LIRA'S DROP WAS TOO MUCH AFFECTED BY POLITICS STOCKS ROSE SLIGHTLY ON THE MILAN STOCK EXCHANGE AFTER THE CONFIDENCE VOTE THERE'S A LOT OF MOMENTUM AND THE VOTE OF CONFIDENCE WILL CERTAINLY HELP SAID MARIECHRISTINE KEITH ITALIAN EQUITIES ANALYST WITH COUNTY NATWEST IN LONDON BUT UNDERCUTTING THAT WAS THE POSSIBLE DOWNGRADE OF CERTAIN ITALIAN STATE DEBT BY MOODY'S INVESTORS SERVICE INC SAYING IT WAS REVIEWING THE RATING MOODY'S CITED ITALY'S LACK OF PROGRESS IN REDUCING ITS HUGE PUBLICSECTOR DEFICIT AND SAID EFFORTS TO IMPROVE THE FISCAL BALANCE ARE BEING IMPEDED BY THE DEEPENING POLITICAL CRISIS ALSO YESTERDAY THE PROBES BY A GROWING NUMBER OF JUDGES AND MAGISTRATES CLAIMED THREE MORE IMPORTANT VICTIMS REPUBLICAN PARTY LEADER GIORGIO LA MALFA RESIGNED AS PARTY SECRETARY AFTER PROSECUTORS TOLD HIM HE IS UNDER INVESTIGATION FOR ALLEGEDLY VIOLATING PARTY FINANCING LAWS MR LA MALFA WHOSE SMALL BUT INFLUENTIAL OPPOSITION REPUBLICAN PARTY HAS BEEN CRUSADING FOR REFORM OF THE ITALIAN POLITICAL SYSTEM WAS TOLD THAT HE WAS UNDER INVESTIGATION FOR ALLEGEDLY ACCEPTING 50 MILLION LIRE 31500 IN QUESTIONABLE CAMPAIGN CONTRIBUTIONS HIS IMMEDIATE RESIGNATION REMOVES A FORCE FOR CHANGE AT THE CENTER OF ITALIAN POLITICS BUSINESSMAN GIAMPIERO PESENTI WHO CONTROLS A BIG CEMENT AND CONSTRUCTION BUSINESS WAS PLACED UNDER HOUSE ARREST ON SUSPICION OF CORRUPTION AND LORENZO NECCI CHAIRMAN OF THE STATE RAILWAY AUTHORITY AND CHAIRMAN OF FORMER CHEMICAL JOINTVENTURE ENIMONT SPA WAS TOLD HE IS UNDER INVESTIGATION MR NECCI DENIED ANY WRONGDOING THE PROBES HAVE SO FAR RESULTED IN THE ARRESTS OF SEVERAL HUNDRED SENIOR POLITICIANS BUSINESSMEN AND OTHERS AT THE CENTER OF THE INVESTIGATION ARE ALLEGATIONS OF WIDESPREAD BRIBERY PAYOFFS AND POLITICAL INFLUENCEPEDDLING ON PUBLIC CONTRACTS AND BUSINESS DEALINGS ACROSS ITALY WHILE THE AMATO GOVERNMENT SURVIVED THE NOCONFIDENCE VOTE IT WAS FAR FROM A RESOUNDING VICTORY AND PRESSURE ON THE GOVERNMENT CONTINUES THE COUNTRY IS IN A POLITICAL CRISIS SAYS GIULIO ANSELMI CODIRECTOR OF MILAN'S INFLUENTIAL CORRIERE DELLA SERA NEWSPAPER IN RESPONSE TO THE CRISIS OFFICIALS ANNOUNCED IN A LASTMINUTE MOVE THAT A REFERENDUM ON ELECTORAL REFORM WOULD BE HELD APRIL 18 SELECTION OF THAT DATE REFLECTED GOVERNMENT HOPES THAT A RELATIVELY EARLY REFERENDUM WILL CALM THE SITUATION 9302260031 930226 MARKETING BRIEF NOTED MOUTHWASH NEW YORK STATE ATTORNEY GENERAL ROBERT ABRAMS SAID NEW YORK AND 26 OTHER STATES PETITIONED THE US CONSUMER PRODUCTS SAFETY COMMISSION TO REQUIRE CHILDRESISTANT PACKAGING FOR MOUTHWASHES WITH MORE THAN 5 ALCOHOL MR ABRAMS SAID THE AMERICAN ASSOCIATION OF POISON CONTROL CENTERS GOT OVER 10000 REPORTS OF CHILDREN UNDER SIX YEARS OLD SWALLOWING MOUTHWASH CONTAINING ALCOHOL IN THE PAST FIVE YEARS INCLUDING THREE DEATHS SOME MOUTHWASHES CONTAIN AS MUCH AS 269 ALCOHOL HE SAID WHO'S NEWS PHILIP KENT 38 WAS NAMED PRESIDENT OF TURNER HOME ENTERTAINMENT A NEW POSITION WITH TURNER BROADCASTING SYSTEM INC HE WILL OVERSEE TURNER'S HOME VIDEO PUBLISHING LICENSING MERCHANDISING AND NEWMEDIA BUSINESSES AND WILL SEEK WAYS TO LINK THEM MR KENT A CONSULTANT ON THE HBO SERIES TALES FROM THE CRYPT WAS A PACKAGING AGENT FOR CREATIVE ARTISTS AGENCY 9302260030 930226 BUSINESS BRIEF SYQUEST INC LOWER PROFIT IS EXPECTED FOR FIRM'S FISCAL 2ND PERIOD SYQUEST TECHNOLOGY INC CITING SHRUNKEN MARGINS AND INCREASED OPERATING EXPENSES SAID IT EXPECTS NET INCOME TO BE LOWER IN ITS SECOND QUARTER ENDING MARCH 31 A YEAR EARLIER THE FREMONT CALIF MANUFACTURER OF COMPUTER DATA STORAGE PRODUCTS HAD NET OF 36 MILLION OR 30 CENTS A SHARE THE COMPANY EXPECTS SALES FOR ITS SECOND QUARTER TO BE HIGHER THAN THE 429 MILLION POSTED A YEAR EARLIER THE COMPANY SAID EARNINGS WERE HURT BY LOWER MARGINS HIGHER OPERATING EXPENSES AND INCREASED LEGAL COSTS RELATED TO A MANUFACTURING DISPUTE WITH FRANCE'S NOMAI SA SYQUEST ALSO SAID EARNINGS WERE HURT BY PRODUCTION DELAYS AND MANUFACTURING GLITCHES BUT THAT THOSE TWO PROBLEMS HAVE SINCE BEEN RESOLVED SYQUEST SHARES FELL 1125 APIECE TO 9 IN NATIONAL OVERTHECOUNTER TRADING 9302260029 930226 WHO'S NEWS QUAKER STATE CORP QUAKER STATE CORP OIL CITY PA C FRED FETTEROLF 64 YEARS OLD RETIRED PRESIDENT AND CHIEF OPERATING OFFICER OF ALUMINUM CO OF AMERICA WAS NAMED A DIRECTOR OF THIS PRODUCER AND MARKETER OF BRANDED MOTOR OILS AND LUBRICANTS AND OTHER PRODUCTS AND SERVICES IN THE AUTOMOTIVE AFTERMARKET THE MOVE EXPANDS THE COMPANY'S BOARD TO 13 MEMBERS 9302260028 930226 THURSDAY'S MARKETS INDUSTRIALS RISE BY 864 POINTS BONDS ARE FLAT BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES ROSE IN NERVOUS CHOPPY TRADING BOND PRICES WERE FLAT AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE GAINED 864 POINTS TO 336514 STANDARD & POOR'S 500STOCK INDEX ROSE 147 TO 44234 AND THE NASDAQ COMPOSITE INDEX CLIMBED 461 TO 66707 HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAID THE STOCK MARKET'S SWINGS SINCE PRESIDENT CLINTON'S SPEECH TO CONGRESS UNDERSCORE INVESTORS' CONFUSION MR JOHNSON BELIEVES INVESTORS ARE LEANING TOWARD THE VIEW THAT THE CLINTON ECONOMIC PROGRAM WILL BE POSITIVE INITIALLY BUT WILL SLOW THE ECONOMY OVER THE LONG HAUL ONE DAY INVESTORS FOCUS ON THE SHORTTERM IMPLICATIONS THE NEXT DAY ON THE LONGTERM IMPLICATIONS MR JOHNSON SAID AS A RESULT THE MARKET IS DIRECTIONLESS ECONOMICALLY SENSITIVE STOCKS CONTINUED TO LAG BEHIND WITH THE EXCEPTION OF AIRLINES WHOSE STRONG PERFORMANCE LIFTED THE DOW JONES TRANSPORTATION AVERAGE 2599 POINTS TO 153220 BIOTECHNOLOGY STOCKS FELL AS AMGEN TUMBLED 20 ON AN EXPECTED EARNINGS DISAPPOINTMENT WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 033 TO 9482 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2528 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1056 ISSUES ROSE AND 817 FELL BOND PRICES WERE FLAT THE TREASURY'S BENCHMARK 30YEAR ISSUE WAS UNCHANGED TO YIELD 688 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16357 MARKS AND 11748 YEN COMPARED WITH 16263 MARKS AND 11748 YEN WEDNESDAY 9302260027 930226 TECHNOLOGY & MEDICINE FUJITSU GETS ORDER FOR SUPERCOMPUTER FROM US COMPANY SAN JOSE CALIF FUJITSU LTD SAID IT WON ITS FIRST SUPERCOMPUTER ORDER IN THE US SINCE REENTERING THAT MARKET ELEVEN MONTHS AGO THE JAPANESE COMPUTER GIANT SAID GECOPRAKLA INC AN OIL EXPLORATION UNIT OF NEW YORKBASED SCHLUMBERGER LTD AGREED TO LEASE A FUJITSU VPX220 MODEL SUPERCOMPUTER FOR ITS HOUSTON COMPUTING CENTER FUJITSU PLACED THE VALUE OF THE FIVEYEAR LEASE INCLUDING SOFTWARE AND MAINTENANCE AT 6 MILLION ALTHOUGH THE AGREEMENT MARKS A VICTORY FOR FUJITSU WHICH HAS BEEN TRYING TO CRACK THE US MARKET AFTER A THREEYEAR ABSENCE ANALYSTS CAUTIONED THAT IT DOESN'T NECESSARILY MEAN MUCH GECOPRAKLA HAD ALREADY BEEN FUJITSU'S SOLE US CUSTOMER USING THREE EARLIERGENERATION FUJITSU MACHINES PURCHASED THROUGH FUJITSU'S AMDAHL CORP AFFILIATE THE NEWER MODEL WILL REPLACE THOSE STILL THOMAS MILLER VICE PRESIDENT OF FUJITSU AMERICA'S SUPERCOMPUTER OPERATIONS SAID THIS IS THE FIRST OF WHAT WE SEE AS A NUMBER OF ORDERS THERE ARE OTHER THINGS COMING ALONG IN THE PIPELINE AND SOME OF THESE ARE GETTING NEAR TO CONTRACT NEGOTIATIONS HE ADDED COLIN HULME GECOPRAKLA'S MARKETING MANAGER FOR NORTH AND SOUTH AMERICA SAID THE COMPANY EVALUATED SEVERAL MACHINES FROM US MANUFACTURERS IN THE BIDDING PROCESS AND FOUND FUJITSU'S TO BE THE BEST WE'VE HAD VERY GOOD EXPERIENCE WITH THEM HE ADDED HE WOULDN'T IDENTIFY THE US ASPIRANTS THE VECTORSTYLE VPX220 DELIVERS PEAK SPEED OF 125 BILLION FLOATINGPOINT OPERATIONS A SECOND ACCORDING TO FUJITSU GECOPRAKLA WILL USE IT TO HELP WITH SEISMIC MAPPING OF UNDERGROUND OIL DEPOSITS 9302260026 930226 BUSINESS BRIEF CALPIS FOOD INDUSTRY CO PRETAX PROFIT INCREASED 25 TO 239 MILLION LAST YEAR CALPIS FOOD INDUSTRY CO JAPAN'S LEADING MAKER OF LACTICACID DRINKS SAID CONSOLIDATED PRETAX PROFIT ROSE 25 IN 1992 PRETAX PROFIT WAS 281 BILLION YEN 239 MILLION UP FROM 224 BILLION YEN A YEAR EARLIER NET INCOME ROSE 39 TO 437 MILLION YEN WHILE SALES INCREASED 75 TO 12215 BILLION YEN CALPIS PREDICTED THAT CONSOLIDATED PRETAX PROFIT FOR THE CURRENT YEAR WILL RISE 67 TO THREE BILLION YEN IT EXPECTS NET TO INCREASE 3 TO 450 MILLION YEN AND SALES TO RISE TO 132 BILLION YEN CONSOLIDATED RESULTS INCLUDE EARNINGS FROM THE PARENT FIVE SUBSIDIARIES AND FIVE AFFILIATED COMPANIES CALPIS SAID IT HAD STRONG SALES INCREASES FOR ITS MILKBASED BEVERAGES WHICH OFFSET DECLINES IN SALES FOR FOODS AND OTHER NONBEVERAGE OPERATIONS SALES FOR DRINKS SUCH AS COFFEES TEAS AND SPIRITS INCREASED MODERATELY THE COMPANY REPORTED PERSHARE EARNINGS OF 1045 YEN UP 25 FROM 834 YEN A YEAR EARLIER THE DIVIDEND REMAINED UNCHANGED AT FOUR YEN A SHARE 9302260025 930226 INTERNATIONAL EC MINISTERS SEEK TO REVAMP STEEL INDUSTRY PLAN AIMS TO PARE CAPACITY THROUGH VOLUNTARY CUTS AGREED UPON BY FIRMS BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN COMMUNITY INDUSTRY MINISTERS BACKED A PLAN TO RESTRUCTURE THE EC'S BELEAGUERED STEEL INDUSTRY BY SLASHING ITS ENORMOUS EXCESS CAPACITY THROUGH VOLUNTARY CUTS AGREED UPON BY THE STEEL COMPANIES THEMSELVES THE PROGRAM CALLS FOR EC MONEY TO HELP CUSHION THE IMPACT OF PLANT SHUTDOWNS AND THE LOSS OF PERHAPS 50000 JOBS AS THE COMMUNITY SHEDS OVERCAPACITY ESTIMATED AT 30 MILLION TONS OF CRUDE STEEL AND 26 MILLION TONS OF HOTROLLED PRODUCTS THE EC COMMISSION HAS PROPOSED FUNDING OF 240 MILLION EUROPEAN CURRENCY UNITS 285 MILLION TO BE MATCHED BY NATIONAL GOVERNMENTS ALTHOUGH DETAILS OF THE FUNDING MECHANISM WILL BE DECIDED LATER CRITICS OF THE COMMISSION'S PLAN INSIST THE MONEY PROPOSED IS VASTLY INSUFFICIENT TO TACKLE THE ADJUSTMENT PROBLEMS AHEAD THIS RESULT NOW ALLOWS US TO GO FORWARD SAID THE EC INDUSTRY COMMISSIONER MARTIN BANGEMANN WE CAN ONLY REDUCE CAPACITY TOGETHER WITH INDUSTRY BUT ONLY BY GIVING INDUSTRY THE NECESSARY FRAMEWORK TO MAKE THOSE DECISIONS THROUGH FUNDING FOR SOCIAL COSTS THE MINISTERS REJECTED CALLS FROM SOME SEGMENTS OF THE STEEL INDUSTRY TO SET OUTPUT QUOTAS OR FLOOR PRICES INSISTING THEY WOULD DO LITTLE TO SOLVE THE UNDERLYING PROBLEM OF CHRONIC OVERCAPACITY IN AN INDUSTRY PLAGUED BY LOW PRICES AND SLACK DEMAND IN A RECESSIONARY CLIMATE THE ALTERNATIVE TO TODAY'S PLAN WOULD HAVE BEEN QUOTAS WHICH WOULD HAVE MEANT MANY MORE JOB LOSSES SAID JAN TROJBORG THE MINISTER FROM DENMARK WHICH HOLDS THE ROTATING EC PRESIDENCY THE PLAN DOESN'T CALL FOR BLANKET CURBS ON STEEL EXPORTS FROM EASTERN EUROPE BUT ALLOWS EC OFFICIALS TO NEGOTIATE UNDER THREAT OF ANTIDUMPING DUTIES NEW TARIFFS OR QUOTAS ON A COUNTRYBYCOUNTRY AND PRODUCTBYPRODUCT BASIS WE HAVE NO INTENTION OF INTERFERING WITH NORMAL TRADE SAID THE EC EXTERNAL TRADE COMMISSIONER SIR LEON BRITTAN BUT HE SAID AN EXCESSIVE SURGE OF SOME STEEL PRODUCTS FROM EASTERN EUROPE COULD REQUIRE SUCH MEASURES ANY NEW TARIFF AGREEMENT MUST HOWEVER BE REVIEWED AT LEAST ONCE A YEAR UNDER THE NEW PLAN THE EC COMMISSION'S SPECIAL STEEL ENVOY FERNAND BRAUN WILL NOW VISIT STEEL COMPANIES TO OBTAIN COMMITMENTS FOR GREATER CAPACITY CUTS THOSE COMMITMENTS SHOULD BE SUBMITTED BY THE END OF SEPTEMBER AND IMPLEMENTED BY THE END OF 1994 OR IN SOME SPECIAL CIRCUMSTANCES THE END OF 1995 NOBODY FEELS THE TASK AHEAD WILL BE EASY ALTHOUGH DIPLOMATS SAID THE MEETING WAS SURPRISINGLY NONCONFRONTATIONAL GIVEN THE DIFFICULT AND POTENTIALLY DIVISIVE DECISIONS MADE THE GERMAN STEEL ASSOCIATION SAID IN DUSSELDORF THAT THE PLAN FAILED TO ADDRESS SUBSIDIES TO STATEOWNED STEEL COMPANIES IN ITALY AND SPAIN WHICH ARE BLAMED BY GERMAN COMPANIES FOR UNDERCUTTING THEIR PRICES PRIVATELY OWNED COMPANIES DO NOT HAVE A CHANCE IN THIS ENVIRONMENT THE GERMAN ASSOCIATION SAID THE WEAK PERFORMERS MUST LEAVE THE MARKET AND MAKE WAY FOR THE STRONG THE EC COMPETITION COMMISSIONER KAREL VAN MIERT SAID THE EC WOULD CONTINUE TO NEGOTIATE WITH SPANISH OFFICIALS FOR FURTHER CAPACITY CUTS THAN THOSE PROPOSED LAST AUTUMN BY MADRID HE ALSO SAID DEEPER CUTS WERE NEEDED BY ITALY'S STATEOWNED STEEL COMPANY ILVA THE PLAN ENDORSED BY INDUSTRY MINISTERS PROVIDES FOR NO RELAXATION OF THE COMMUNITY'S STRICT RULES ON STATE AID BUT CALLS FOR NORMALLY CARTELCONSCIOUS ANTITRUST OFFICIALS TO LOOK THE OTHER WAY WHEN STEEL COMPANIES GET TOGETHER TO JOINTLY FINANCE CAPACITY REDUCTION AUDREY CHOI IN DUSSELDORF CONTRIBUTED TO THIS ARTICLE 9302260024 930226 WHO'S NEWS TOP FINANCIAL OFFICER OF AB ASTRA QUITS AFTER RIFT WITH CEO SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB ASTRA'S CHIEF FINANCIAL OFFICER PETER SJOESTRAND RESIGNED ABRUPTLY AFTER CLASHING WITH THE SWEDISH DRUG MAKER'S CHIEF EXECUTIVE OFFICER OVER ALLOCATION OF FUTURE RESPONSIBILITIES IN TELEPHONE INTERVIEWS HAKAN MOGREN THE CEO AND MR SJOESTRAND DECLINED TO DISCUSS EXACTLY WHICH RESPONSIBILITIES TRIGGERED THE BREACH BUT BOTH INSISTED THE DISAGREEMENT WASN'T RELATED TO ANY FINANCIAL MISSTEPS SUCH AS SURPRISE FOREIGN EXCHANGE TRADING LOSSES THAT HAVE SURFACED AT SEVERAL BIG SWEDISH COMPANIES LATELY WE SIMPLY CAME TO A CROSSROADS ABOUT HOW TO SHARE CERTAIN TASKS AND RESPONSIBILITES MR MOGREN SAID FOR THE PAST COUPLE OF WEEKS PETER AND I HAVE BEEN DISCUSSING DIFFERENT OPPORTUNITIES AND WAYS OF SHARING THEM AMONG PEOPLE ON OUR EXECUTIVE TEAM IT INVOLVED A CHANGE OF FOCUS IN SOME OF HIS RESPONSIBILITIES WE WEREN'T ABLE TO AGREE AND DECIDED TO SOLVE IT THIS WAY IN ADDITION TO BEING CHIEF FINANCIAL OFFICER MR SJOESTRAND 46 YEARS OLD WAS THE MEMBER OF ASTRA'S EXECUTIVE MANAGEMENT COMMITTEE RESPONSIBLE FOR OPERATIONS IN THE US INCLUDING CRUCIAL RELATIONS WITH MERCK & CO ASTRA AND MERCK ARE ON THE BRINK OF TRANSFORMING A 10YEAROLD LICENSING PACT INTO A 5050 JOINT VENTURE TO HANDLE FUTURE DEVELOPMENT AND MARKETING OF ASTRA MEDICINES IN THE US A SPOKESWOMAN FOR MERCK SAID MR SJOESTRAND'S RESIGNATION WOULD HAVE ABSOLUTELY NO IMPACT ON THE ARRANGEMENT FOR TRANSFORMING THE LICENSING PACT INTO A JOINT VENTURE MR MOGREN SAID IT WAS TOO EARLY TO DISCUSS A SUCCESSOR FOR MR SJOESTRAND DURING MR SJOESTRAND'S 15YEAR STINT ON ASTRA'S MANAGEMENT COMMITTEE THE DRUG MAKER'S SALES ROSE NINEFOLD WHILE PROFIT MULTIPLIED 55 TIMES AND MARKET CAPITALIZATION A WHOPPING 100 TIMES ASTRA'S BIGGEST DRUG IS LOSEC AN ULCER TREATMENT 9302260023 930226 BUSINESS BRIEF AMERICAN EXPRESS CO OPTIMA CARD TO GET CHANGE IN DESIGN INCENTIVE PROGRAM AMERICAN EXPRESS CO NEW YORK SAID IT IS CHANGING THE DESIGN OF ITS OPTIMA CREDIT CARD AND ADDING A NEW FEATURE TO ENCOURAGE GREATER USE BY CARD HOLDERS THE MOVE IS PART OF THE COMPANY'S EFFORTS TO REVAMP THE CREDIT CARD BUSINESS WHICH HAD HUGE LOSSES IN 1991 AS A RESULT OF HIGHERTHANAVERAGE DEFAULT RATES THE COLOR OF THE OPTIMA CARD WHICH IS OFFERED ONLY TO CUSTOMERS WHO ALREADY CARRY AMERICAN EXPRESS GREEN GOLD OR PLATINUM CHARGE CARDS IS BEING CHANGED FROM THE COMPANY'S TRADEMARK GREEN TO SILVER AND BLUE THE COMPANY SAID UNLIKE THE COMPANY'S CHARGE CARD OPTIMA CREDIT CARD HOLDERS CAN PAY THE BALANCE OUTSTANDING IN MONTHLY INSTALLMENTS IN ADDITION TO THE COLOR CHANGE THE COMPANY SAID IT WILL INTRODUCE IN LATE APRIL AN INCENTIVE PROGRAM UNDER WHICH CARD USERS CAN EARN POINTS TOWARD FREE DINNERS AND WEEKEND VACATIONS AMONG OTHER THINGS 9302260022 930226 TAX PROPOSAL RAISES CONCERN IN PUERTO RICO CLINTON'S PLAN TO CURTAIL FIRMS' EXEMPTION POSES DILEMMA FOR POLITICIANS BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT BILL CLINTON'S PROPOSAL TO CURTAIL A 3 BILLIONAYEAR FEDERAL TAX EXEMPTION FOR COMPANIES DOING BUSINESS IN PUERTO RICO HAS TERRIFIED THE BUSINESS COMMUNITY OF THAT US COMMONWEALTH AND CREATED A POLITICAL DILEMMA FOR ITS NEWLY ELECTED GOVERNMENT LAST WEEK IN DEFENSE OF HIS ECONOMIC PLAN PRESIDENT CLINTON SIGNALED HE WANTS TO REPLACE A FEDERAL TAX PROVISION THAT EXEMPTS FROM FEDERAL TAXES INCOME EARNED BY CORPORATIONS BASED IN PUERTO RICO AND OTHER US TERRITORIES PRESIDENT CLINTON WOULD REPLACE THE PROVISION SECTION 936 OF THE INTERNAL REVENUE CODE BY A 65 TAX EXEMPTION ON WAGES PAID BY THE CORPORATIONS TO THEIR EMPLOYEES TWO DAYS EARLIER SEN DAVID PRYOR CALLING SECTION 936 THE MOST ABUSIVE OF ALL TAX SHELTERS MAYBE OF ALL TIME WEIGHED IN WITH A SENATE BILL THAT WOULD REPLACE THE TAX EXEMPTION WITH A 40 TAX EXEMPTION ON WAGES PAID BY CORPORATIONS TO THEIR EMPLOYEES UP TO 20000 SEN PRYOR PERHAPS PRESIDENT CLINTON'S CLOSEST FRIEND IN CONGRESS SAID SECTION 936 HAD BECOME A GIGANTIC TAX WINDFALL FOR THE PHARMACEUTICAL INDUSTRY IN A DRAFT OF ITS TAX PROPOSALS THE TREASURY SAID THAT WHILE SECTION 936 WAS ENACTED TO FOSTER ECONOMIC DEVELOPMENT IN PUERTO RICO AND OTHER US POSSESSIONS REPEATED STUDIES INDICATE THAT A DISPROPORTIONATE SHARE OF ITS FUNDS GO TO INDUSTRIES THAT CREATE RELATIVELY FEW JOBS THE TREASURY SAYS THAT IN 1989 FOR INSTANCE US TAXPAYERS SPENT 66081 FOR EVERY JOB THAT PHARMACEUTICAL COMPANIES AN INDUSTRY THAT REAPED HALF THE BENEFITS OF SECTION 936 CREATED IN PUERTO RICO GOING ALONG WITH TREASURY RECOMMENDATIONS THE CLINTON PROPOSAL WOULD LIMIT THE TAX BREAKS COMPANIES GET TO 65 OF EMPLOYEE WAGES SUBJECT TO SOCIAL SECURITY TAXES AND SAVE THE FEDERAL GOVERNMENT MORE THAN 7 BILLION OVER THE NEXT SIX YEARS ACCORDING TO MR CLINTON'S DEFENSE OF HIS PROPOSAL PUERTO RICAN BUSINESSMEN SAY THAT THOSE PROJECTED SAVINGS ARE ILLUSORY BECAUSE MANY COMPANIES WOULD MOVE OFFSHORE SECTION 936 AND PREVIOUS SIMILAR TAX LEGISLATION HAVE BEEN THE MOTOR OF PUERTO RICO'S MODERN DEVELOPMENT PULLING THE ISLAND FROM A POVERTY THAT ONCE WAS WORSE THAN IN HAITI TO WHAT FOR LATIN AMERICA AND THE CARIBBEAN IS RELATIVE PROSPERITY STILL WITH A PER CAPITA INCOME OF 6038 PUERTO RICANS WHO ARE US CITIZENS BUT DON'T VOTE IN US ELECTIONS HAVE ROUGHLY HALF THE INCOME OF MISSISSIPPIANS THE US'S POOREST STATE FUNDS FROM 936 COMPANIES ARE A KEY PART IN THE ISLAND'S FINANCIAL SYSTEM THEY ACCOUNT FOR ABOUT ONETHIRD OR 6 BILLION OF ALL FUNDS ON DEPOSIT IN PUERTO RICAN FINANCIAL INSTITUTIONS THE 936 FUNDS KEEP BORROWING COSTS LOW SAYS TERRENCE WADSWORTH PRESIDENT OF THE PUERTO RICO BANKERS ASSOCIATION AND GENERAL MANAGER OF THE CHASE MANHATTAN BANK'S PUERTO RICO UNIT THE 936 COMPANIES ALSO SUPPLY ABOUT 500 MILLION TO 600 MILLION IN TAX REVENUE TO THE ISLAND'S GOVERNMENT FUNDS FROM THE PROGRAM ARE ALSO IMPORTANT FOR THE CARIBBEAN REGION AS A WHOLE SINCE 1986 CLOSE TO 900 MILLION OF 936 FUNDS HAS BEEN INVESTED IN ECONOMIC DEVELOPMENT PROJECTS IN 10 CARIBBEAN BASIN COUNTRIES CREATING 129000 JOBS IN THE REGION SAYS BALTASAR CORRADA DEL RIO PUERTO RICO'S SECRETARY OF STATE MOST PUERTO RICAN BUSINESS LEADERS BELIEVE THAT A WAGE CREDIT ON THE LINES OF THOSE PROPOSED BY PRESIDENT CLINTON OR SEN PRYOR WOULDN'T WORK AS IT IS THEY SAY PUERTO RICO HAS RELATIVELY HIGH BUSINESS COSTS WITHOUT THE SECTION 936 TAX EXEMPTION THE HIGH COSTS WOULD MAKE IT DIFFICULT FOR PUERTO RICO TO ATTRACT NEW INVESTMENTS OR RETAIN OLD ONES THE BUSINESS LEADERS FORESEE AN ECONOMIC CATASTROPHE IN THE MAKING FOR THE ISLAND WHICH IS ALREADY FEELING SQUEEZED BY COMPETITION FOR INVESTMENT FROM LOWER WAGE COUNTRIES ESPECIALLY MEXICO IT WOULD BE A DISASTER FOR PUERTO RICO SAYS DANIEL LEBRON THE PRESIDENT OF THE PUERTO RICO MANUFACTURERS ASSOCIATION THE ISLAND'S CHIEF BUSINESS GROUP MR LEBRON WHO IS ALSO PRESIDENT OF THE PUERTO RICO UNIT OF PHARMACEUTICAL FIRM SEARLE & CO SAYS THAT IF SECTION 936 IS REPLACED BY A WAGE CREDIT IN 10 YEARS THE ISLAND'S HIGHTECHNOLOGY INDUSTRIAL BASE WILL BE 20 OF WHAT IT IS NOW ALREADY ONE PHARMACEUTICAL COMPANY SCHERINGPLOUGH CORP WHICH HAS FOUR PLANTS WITH NEARLY 2000 WORKERS ON THE ISLAND HAS SAID THAT IT WOULD BE FORCED TO REASSESS ITS PRESENCE IN PUERTO RICO IF SECTION 936 TAX BENEFITS ARE ELIMINATED OR SIGNIFICANTLY REDUCED THERE ARE ABOUT 50 PHARMACEUTICAL COMPANIES OPERATING ON THE ISLAND THEY ACCOUNT FOR ABOUT 18000 OF SECTION 936'S DIRECT JOBS IT WOULDN'T BE A GIANT SUCKING SOUND BUT I DO SEE ATTRITION SAYS JOHN STEWART AN ECONOMIST WITH PUERTO RICO'S DEVELOPMENT AGENCY THE DANGER SAYS MR STEWART IS THAT PUERTO RICO WILL BE CAUGHT IN A VICE LOSING JOBS AT BOTH ENDS OF THE WAGE SCALE ON THE ONE HAND SAYS MR STEWART THE PHASING OUT OF SECTION 936 WOULD DISSUADE ANY NEW HIGHTECH HIGHWAGE JOBS FROM COMING TO THE ISLAND MEANWHILE SPURRED BY THE SIGNING OF THE NORTH AMERICA FREE TRADE AGREEMENT WITH MEXICO LOWTECH LOWWAGE JOBS WILL CONTINUE TO MIGRATE SOUTH IN THE PAST PUERTO RICO'S GOVERNMENT ALLIED WITH 936 COMPANIES HAVE MOUNTED MASSIVE LOBBYING EFFORTS IN DEFENSE OF THE TAX EXEMPTION BUT THIS TIME THE GOVERNMENT'S RESPONSE HAS BEEN HESITANT AND CONFUSED THE REASONS ARE BOTH POLITICAL AND PHILOSOPHICAL IRONICALLY WHILE THE PLATFORM OF THE RULING PROSTATEHOOD PARTY CALLS FOR THE ENERGETIC SUPPORT OF SECTION 936 UNTIL THE ISLAND'S ECONOMY REACHES A LEVEL COMPARABLE WITH THE US MANY IN THE PARTY HAVE A DEEP AND ABIDING HATRED FOR THE LAW WHICH THEY SEE AS A GOLDEN CHAIN RESTRAINING THE ISLAND FROM THE STATEHOOD STATUS THEY DESIRE GOV PEDRO ROSSELLO HAS CALLED FOR A PLEBISCITE ON THE ISSUE FOR LATE THIS YEAR SO WHILE GOV ROSSELLO SAYS THAT PRESIDENT CLINTON'S PROPOSAL CONCERNING SECTION 936 NOW FALLS SHORT WITH REGARD TO THE ISLAND'S NEEDS FOR JOBS AND CAPITAL INVESTMENT HE DIFFERS WITH PUERTO RICO'S WASHINGTON REPRESENTATIVE CARLOS ROMERO BARCELO WHO THINKS THE PRESIDENT'S PROPOSAL IS A GOOD STEP FORWARD AS THE ISLAND'S REPRESENTATIVE AND LIAISON WITH CONGRESS MR ROMERO BARCELO A FORMER GOVERNOR WOULD NORMALLY BE THE POINTMAN IN THE GOVERNMENT'S EFFORTS TO SAFEGUARD SECTION 936 NOT THIS TIME ITS AN INFERIORITY COMPLEX CREATED BECAUSE OF PUERTO RICO'S STATUS AS A COLONY SAYS MR ROMERO BARCELO REFERRING TO THE IDEA THAT THE ISLAND CAN'T MAKE IT ECONOMICALLY WITHOUT SECTION 936 GOOD RIDDANCE HE SNIFFS A LOT OF VESTED INTERESTS WILL HAVE IT LESS EASY BUT THAT DOESN'T MEAN PUERTO RICO WILL HAVE IT LESS EASY HE SAYS PUERTO RICO'S INTERESTS ARE NOT NECESSARILY THE SAME AS THOSE COMPANIES' VESTED INTERESTS 9302260021 930226 AMERICAN EXPRESS BROKERAGE UNIT SETTLES FRAUD CASE BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SHEARSON LEHMAN BROTHERS INC UNIT PAID 2 MILLION TO SETTLE CHARGES BY A DISABLED MUSICIAN AGAINST A FORMER BROKER WHO HAS BEEN JAILED FOR DEFRAUDING ATHLETES AND OTHER CELEBRITIES BUT THE UNIT ROBINSONHUMPHREY CO AGREED TO SETTLE THE CASE ONLY AFTER A GEORGIA SUPERIORCOURT JURY ORDERED THE FIRM TO PAY 697000 IN COMPENSATORY DAMAGES PLUS ATTORNEYS FEES AND RULED THAT PUNITIVE DAMAGES ALSO WERE WARRANTED ONCE THE JURY CAME DOWN WITH THAT VERDICT THE FIRM GOT REAL SERIOUS ABOUT SETTLING SAYS MARION SMITH II MANAGING PARTNER AT FORTSON & WHITE AN ATLANTA LAW FIRM REPRESENTING THE MUSICIAN MR SMITH DECLINED TO DISCUSS DETAILS OF THE SETTLEMENT CITING A CONFIDENTIALITY CLAUSE AS DID SHEARSON AN AMERICAN EXPRESS CO UNIT AND THE NATION'S SECOND LARGEST BROKERAGE FIRM BUT PEOPLE FAMILIAR WITH THE CASE SAY SHEARSON PAID OUT 2 MILLION THE SETTLEMENT IS THE LARGEST BY ROBINSONHUMPHREY INVOLVING THE BROKER OSCAR AYALA JR THE FIRM HAS PAID A TOTAL OF ROUGHLY 3 MILLION TO SETTLE ABOUT 20 CLAIMS INVOLVING THE 39YEAROLD MR AYALA THE SUBJECT OF A FRONTPAGE STORY IN THIS NEWSPAPER LAST YEAR GIVING DETAILS ABOUT THE CASES AGAINST HIM HE IS NOW SERVING A 41MONTH JAIL SENTENCE AFTER PLEADING GUILTY IN 1990 TO SECURITIES AND WIRE FRAUD CASES AGAINST MR AYALA HAVE BEEN FILED BY SEVERAL PROFESSIONAL BALLPLAYERS INCLUDING RICHARD DENT CHICAGO BEARS DREW HILL FORMERLY OF THE HOUSTON OILERS AND ATLANTA FALCONS ALPHONSO CARREKER FORMERLY OF THE DENVER BRONCOS AND TERRY HARPER FORMERLY OF THE ATLANTA BRAVES THE MOST RECENT CASE WAS FILED BY JAMES TIGNER JR A MUSICIAN AND FORMER STAFF MEMBER OF A TELEVISION SHOW STARRING THE LATE COMEDIAN REDD FOXX MR TIGNER WHO WAS DISABLED IN A 1982 AUTOMOBILE ACCIDENT OPENED A BROKERAGE ACCOUNT WITH MR AYALA IN 1988 DEPOSITING 14 MILLION MR TIGNER 54 YEARS OLD SAYS HIS ACCOUNT WAS DEPLETED IN TWO YEARS DESPITE ASSURANCES FROM MR AYALA THAT HE WAS MAKING MONEY ACCORDING TO PAPERS FILED WITH THE SUPERIOR COURT IN FULTON COUNTY GA MR TIGNER ALSO ALLEGED IN THE SUIT THAT MR AYALA SOLD HIM A 1983 PORSCHE FOR 20000 WITHOUT HAVING A TITLE TO THE CAR MR AYALA CURRENTLY IN A MONTGOMERY ALA FEDERAL PRISON COULDN'T BE REACHED TO COMMENT 9302260020 930226 YOUR MONEY MATTERS TAXES 1993 TAXSMART MOVES FOR SAVVY INVESTORS IN 1993 BY TOM HERMAN AND ELLEN E SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL TAXSMART INVESTING PROBABLY SOUNDS ESPECIALLY APPEALING RIGHT NOW AS YOU STRUGGLE WITH YOUR 1992 RETURN AND CONTEMPLATE THE LIKELIHOOD OF EVEN HIGHER TAXES SOON FOR UPPERINCOME INVESTORS PAYING CLOSE ATTENTION TO THE TAX CONSEQUENCES OF INVESTMENTS IS NOT ONLY SMART IT'S ESSENTIAL ESPECIALLY IN VIEW OF TAX INCREASES PROPOSED BY PRESIDENT CLINTON THAT WOULD PUSH THE TOP FEDERAL RATE FOR SOME OF THE WEALTHIEST AMERICANS ABOVE 40 EVEN MANY PEOPLE WHO DON'T CONSIDER THEMSELVES WEALTHY WILL BENEFIT FROM PAYING MORE ATTENTION TO TAXES WHEN THEY INVEST BUT DON'T GO OVERBOARD TAXADVANTAGED INVESTMENTS RANGING FROM TAXEXEMPT MUNICIPAL BONDS TO TAXDEFERRED ANNUITIES AND LIFE INSURANCE CERTAINLY HAVE THEIR PLACE IN MANY INVESTORS' PORTFOLIOS HOWEVER NEVER LEAP INTO ANY INVESTMENT SOLELY ON THE BASIS OF TAX CONSIDERATIONS NO MATTER HOW TEMPTING THE MATH MAY LOOK SOME TAXFAVORED INVESTMENTS HAVE HIGH BUILTIN COSTS THAT CAN CUT DEEPLY INTO AN INVESTOR'S RETURN OTHERS MAY CONTAIN RISKS THAT AREN'T READILY APPARENT IN THE MARKETING PITCHES FROM BROKERS MUTUAL FUNDS INSURERS AND OTHER FINANCIAL ADVISERS EVEN SEEMINGLY ULTRACONSERVATIVE INVESTMENTS SUCH AS TAXFREE MUNICIPAL BONDS CAN TURN INTO BIG LOSERS IF INVESTORS AREN'T CAREFUL KEEP IN MIND THAT PEOPLE WHO SELL FINANCIAL PRODUCTS OFTEN EARN FAR MORE FROM SELLING TAXADVANTAGED PRODUCTS THAN THEY CAN FROM STOCKS MOREOVER COMMISSIONS AND TAXES CAN MAKE MAJOR PORTFOLIO MOVES SUCH AS SELLING A MAJOR PORTION OF YOUR STOCKS AND BUYING MUNICIPALS OR JUST DIFFERENT TYPES OF STOCKS EXTREMELY COSTLY TAXADVANTAGED INVESTMENTS ALWAYS MUST STAND ON THEIR OWN MERITS AND NEVER BE PURCHASED BECAUSE OF TAX CONSEQUENCES ALONE SAYS THOMAS J STEFFANCI DIRECTOR OF FIXED INCOME AT FIDELITY MANAGEMENT & RESEARCH CO IN BOSTON AN INVESTMENT THAT MAY LOOK VERY ATTRACTIVE ON A TAX BASIS MAY TURN OUT TO BE A ROTTEN INVESTMENT THAT CERTAINLY WAS THE CASE BACK IN THE 1970S AND EARLY 1980S WHEN MANY PEOPLE LET HIGH TAX RATES DRIVE THEIR INVESTMENT DECISIONS PEOPLE GOT BURNED BY PUTTING MONEY IN DEALS THAT PROMISED TAX SAVINGS BUT IN FACT HAD LITTLE OR NO UNDERLYING ECONOMIC SUBSTANCE SAYS STANLEY BREITBARD A PARTNER OF PRICE WATERHOUSE AND NATIONAL DIRECTOR PERSONAL FINANCIAL SERVICES MOREOVER WHILE IT SEEMS ALMOST CERTAIN TAX RATES ARE GOING UP THERE IS STILL A LOT OF UNCERTAINTY ABOUT JUST WHAT THE DETAILS WILL BE WHEN MR CLINTON AND CONGRESS GET FINISHED TAKE IT SLOW TO ADJUST AN INVESTMENT STRATEGY TO THE CLINTON TAX PROPOSALS MR BREITBARD ADVISES FOR ONE THING HE SAYS TAX INCREASES MAY BE DELAYED UNTIL 1994 OR PASSED LATE ENOUGH THIS YEAR SO THERE WILL BE A BLENDED RATE FOR 1993 PRESIDENT CLINTON WANTS TO RAISE THE TOP STATED TAX RATE TO 396 INCLUDING A SURTAX ON THOSE WITH TAXABLE ANNUAL INCOME OF OVER 250000 BUT THE ACTUAL BITE WOULD BE EVEN WORSE FOR AMERICANS IN THE UPPERMOST FINANCIAL RUNGS THE ACTUAL TOP INCOME TAX RATE FOR A MARRIED COUPLE WITH TWO CHILDREN WOULD WORK OUT TO MORE THAN 43 AFTER FACTORING IN BACKDOOR TAX INCREASES ENACTED IN 1990 LIMITING PERSONAL EXEMPTIONS AND ITEMIZED DEDUCTIONS FOR UPPERINCOME TAXPAYERS MR BREITBARD FIGURES UNDER PRESENT TAX LAW THE TOP RATE FOR THAT FAMILY IS 342 HE SAYS WITH SERIOUS TALK ABOUT INCREASES LIKE THAT IT ONLY MAKES GOOD SENSE TO TAKE A CLOSER LOOK AT INVESTMENTS THAT MAY LET YOU KEEP MORE OF WHAT YOU EARN HERE ARE SOME OF THE PROS AND CONS OF SEVERAL IDEAS INVESTORS ARE ALREADY HEARING ABOUT FROM FINANCIAL SALESPEOPLE PRESIDENT CLINTON ALREADY IS BEING HAILED ON WALL STREET AS HISTORY'S GREATEST MUNICIPAL BOND SALESMAN HUGE NUMBERS OF INVESTORS HAVE BEEN SCOOPING UP TAXFREE BOND SINCE OCTOBER WHEN MR CLINTON'S ELECTION SEEMED LIKE A SAFE BET THE PRESIDENT'S PROPOSED TAX INCREASES WOULD MAKE THE CASE FOR TAXFREE BONDS EVEN MORE COMPELLING PARTICULARLY FOR RESIDENTS OF HIGHTAX STATES SUCH AS NEW YORK CALIFORNIA MASSACHUSETTS AND CONNECTICUT FOR EXAMPLE SOME REPRESENTATIVE HIGHGRADE MUNICIPAL BONDS DUE IN ABOUT 13 YEARS NOW YIELD ABOUT 5 SAYS PHILIP SIMONETTI SENIOR VICE PRESIDENT AT LEHMAN BROTHERS COMPARABLE US TREASURY BONDS YIELD JUST OVER 6 BUT BECAUSE THEY ARE FULLY TAXABLE AT THE FEDERAL LEVEL THE YIELD FOR THE HIGHESTBRACKET INVESTORS UNDER MR CLINTON'S PROPOSAL WOULD MELT TO LESS THAN 35 BUT TAXEXEMPT MUNICIPAL BONDS ALSO HAVE SOME DRAWBACKS UNLIKE NEW TREASURY SECURITIES FOR INSTANCE MOST MUNICIPAL BONDS CAN BE CALLED OR REDEEMED BEFORE THEIR SCHEDULED MATURITY THAT CAN FORCE INVESTORS TO REINVEST THEIR PRINCIPAL AT A TIME WHEN INTEREST RATES ARE DOWN BUYING OR SELLING INDIVIDUAL MUNICIPAL BONDS IS ALSO TRICKY BECAUSE PRICES CAN VARY SIGNIFICANTLY FROM ONE DEALER TO ANOTHER FOR EXACTLY THE SAME MERCHANDISE ON THE SAME DAY TAXEXEMPT BOND FUNDS EASE THE PROBLEMS OF INVESTING IN MUNICIPALS FOR SMALL INVESTORS BUT KEEP IN MIND THAT THE VALUE OF YOUR FUND SHARES WILL FLUCTUATE AND THAT MANAGEMENT FEES AND OTHER EXPENSES REDUCE YOUR YIELD INVESTMENT ADVISERS SAY TO RESIST THE TEMPTATION TO REACH FOR THE HIGHEST YIELDS AVAILABLE ON LONGTERM LOWRATED BONDS THESE ADVISERS CONTEND THAT YIELDS ON LOWRATED BONDS SIMPLY AREN'T HIGH ENOUGH TO COMPENSATE FOR THE ADDED RISKS INTERMEDIATETERM BONDS ARE ALSO LESS VOLATILE THAN LONGTERM ISSUES LOOK FOR INTERMEDIATETERM ISSUES WITH TRIPLEA OR DOUBLEA CREDIT RATINGS OR MUTUAL FUNDS THAT BUY INTERMEDIATE ISSUES THERE ARE 42 INTERMEDIATETERM MUNICIPAL BOND FUNDS TO CHOOSE FROM AND SOME OF THESE FUNDS HAVE PRODUCED EVEN HIGHER TOTAL RETURNS THAN LONGTERM FUNDS OVER THE PAST FEW YEARS ACCORDING TO LIPPER ANALYTICAL SERVICES INC VANGUARD'S INTERMEDIATETERM MUNICIPAL BOND FUND RANKS NO 1 AMONG THE 24 INTERMEDIATE FUNDS WITH RECORDS DATING BACK TO AT LEAST MAY 31 1989 VANGUARD'S FUND PRODUCED A TOTAL RETURN OF ABOUT 39 EVEN BETTER THAN THE AVERAGE RETURN OF ABOUT 36 ON GENERAL MUNICIPAL BOND FUNDS DURING THAT PERIOD HIGHER TAXES WOULD BE A REAL SHOT IN THE ARM FOR ANNUITIES SAYS PETER K BENNETT VICE PRESIDENT AT EQUITABLE LIFE ASSURANCE SOCIETY AND NO WONDER INVESTORS CAN SHELTER VIRTUALLY UNLIMITED AMOUNTS OF MONEY IN ANNUITIES WHICH GROW TAXDEFERRED UNTIL TAKEN OUT YOU CAN CHOOSE FIXEDRETURN OPTIONS OR SWITCH AMONG STOCKS AND BOND INVESTMENTS WITHOUT TRIGGERING CAPITAL GAINS FURTHER IF THE ANNUITY CONTRACT HOLDER DIES HEIRS GET NO LESS THAN THE PRINCIPAL INVESTMENT AND ANNUITY ASSETS ARE UNTOUCHABLE BY CREDITORS IN BANKRUPTCIES AND LAWSUITS IN MANY STATES AND INVESTORS WHO ALLOCATE THEIR MONEY INTO LOWRETURNING BOND OR MONEY MARKET INVESTMENTS USUALLY FIND THAT IT TAKES 15 TO 20 YEARS OR MORE BEFORE THEY EVEN BEGIN TO BENEFIT FROM THE TAX DEFERRAL THAT'S BECAUSE THE ANNUAL CONTRACT CHARGE WHICH AVERAGES 125 OVERWHELMS THE BENEFITS OF TAX DEFERRAL IF THE INVESTMENTS HAVE LOW RETURNS BUT INVESTORS WHO CHOOSE CONTRACTS WITH LOWER ANNUAL CHARGES OR ALLOCATE THEIR MONEY INTO HIGHERRETURN INVESTMENT CATEGORIES WILL FIND THE BENEFITS OF TAX DEFERRAL STARTING AFTER THE FIRST FEW YEARS THIS MAKES IT CRITICAL FOR INVESTORS TO APPROACH ANNUITIES AS LONGTERM INVESTMENTS TO COMPARE FEES AND PERFORMANCE AND TO ALLOCATE THEIR MONEY INTO HIGHERRETURNING OPTIONS LIFE INSURANCE INVESTMENTS ARE ANOTHER OF THE LAST TAX SHELTERS AROUND INVESTORS CAN OFTEN PUT HUNDREDS OF THOUSANDS OF DOLLARS INTO A TAXDEFERRED LIFE INSURANCE SAVINGS CONTRACT WHILE SOME OF THEIR BALANCE IS SIPHONED OFF EVERY YEAR TO PAY THE PREMIUM ON THE LIFE INSURANCE POLICY THE REST GROWS TAX SHELTERED MANY INVESTORS LATER BORROW THE SAVINGS OUT AND DON'T PAY IT BACK THIS LOOPHOLE ENABLES THEM TO GET THEIR EARNINGS COMPLETELY TAX FREE FURTHER IF LIFE INSURANCE POLICIES ARE HELD TO DEATH INVESTMENT EARNINGS ARE NEVER SUBJECT TO INCOME TAX AND POLICIES CAN BE PURCHASED THROUGH A TRUST TO MAKE THE PROCEEDS ESTATETAX FREE ROBERT WEGNER A FEEONLY PLANNER IN SUMMIT NJ EXPECTS TO RECOMMEND GREATER USE OF SINGLEPREMIUM LIFE INSURANCE POLICIES AS INVESTMENTS IN THE WAKE OF THE CLINTON PACKAGE THE INSIDE BUILDUP OF THE CASH VALUE CAN BE MORE ADVANTAGEOUS NOW BECAUSE THE TAX DEFERRAL IS WORTH MORE HE EXPLAINS HOWEVER LIFE INSURANCE HAS THE HIGHEST COMMISSIONS OF ALL FINANCIAL PRODUCTS ON THE MARKET TYPICALLY 50 TO 100 OF THE FIRST YEAR PREMIUM SO IF YOU CASH THE POLICY IN THE EARLY YEARS YOU COULD LOSE MONEY AND THERE'S NO GUARANTEE THAT REVENUE HUNTERS IN THE TREASURY WILL LEAVE LIFE INSURANCE POLICIES UNTOUCHED BECAUSE OF THE COMPLEXITY OF LIFE INSURANCE PRODUCTS INVESTORS WOULD BE WISE TO STICK WITH SEASONED AGENTS TO COMPARE POLICIES FROM SEVERAL COMPANIES AND TO PAY A FEEONLY ADVISER TO REVIEW ANY CONTRACT THEY ARE CONSIDERING BUYING ALTHOUGH STOCKS DON'T TURN UP ON TRADITIONAL LISTS OF TAXADVANTAGED INVESTMENTS SALES PEOPLE WILL BE MENTIONING THEM AS WINNERS IN THE NEW TAX LANDSCAPE FOR ONE THING PRESIDENT CLINTON'S TAX PROPOSALS WOULD GIVE CAPITAL GAINS GREATER ALLURE THE TOP TAX RATE ON CAPITAL GAINS WOULD REMAIN AT 28 CREATING A HUGE 15 PERCENTAGEPOINT DIFFERENTIAL BETWEEN THE CAPITAL GAINS TAX AND THE TAX PAID BY THE WEALTHIEST ON REGULAR INCOME THAT COULD HURT STOCKS THAT PAY BIG DIVIDENDS AND INCREASE THE ATTRACTIVENESS OF COMPANIES THAT RETAIN MOST OF THEIR EARNINGS SOME INVESTMENT MANAGERS SAY IN PARTICULAR INVESTORS WILL BE HEARING ABOUT SMALLCOMPANY GROWTH STOCKS WHICH COULD ALSO BENEFIT FROM PROPOSED TAX CREDITS AND INVESTMENT INCENTIVES I WOULD STRONGLY RECOMMEND INVESTING IN SMALLCAP GROWTH' STOCKS RIGHT NOW SAYS JAMES COLLINS CHAIRMAN AND CHIEF EXECUTIVE OF INSIGHT CAPITAL RESEARCH & MANAGEMENT INC IN MORAGA CALIF AND EDITOR OF OTC INSIGHT NEWSLETTER STILL INVESTORS SHOULD REMEMBER THAT STOCKS ARE RELATIVELY RISKIER THAN MUNICIPAL BONDS MOREOVER SOME INVESTMENT PROFESSIONALS FEAR THAT HIGHER TAXES COULD SLOW THE ECONOMY AND HOBBLE STOCK PRICES THIS IS A GOOD TIME TO CONSIDER TAKING BETTER ADVANTAGE OF TAXADVANTAGED INVESTMENTS OFFERED BY EMPLOYERS INDIVIDUALS CAN SET ASIDE A MAXIMUM OF 8994 THIS YEAR IN EMPLOYERSPONSORED 401K PLANS MANY PLANS ALSO ALLOW EMPLOYEES TO SET ASIDE AFTERTAX CONTRIBUTIONS THE PROPOSED CHANGE IN TAX RATES MAKES DEFERRAL OF INCOME WORTH MORE SAYS PETER ELINSKY COMPENSATION AND BENEFIT TAX PARTNER AT THE WASHINGTON OFFICE OF KPMG PEAT MARWICK TOP EXECUTIVES WHO DON'T ALREADY HAVE THEM MAY WANT TO NEGOTIATE FOR EMPLOYERPROVIDED SUPPLEMENTAL RETIREMENT PLANS CONTRIBUTIONS ARE MADE BY THE EMPLOYER AND EMPLOYEES DON'T PAY TAX UNTIL THEY RECEIVE THE MONEY WHICH IS USUALLY YEARS IN THE FUTURE INDIVIDUALS CAN PUT AS MUCH AS 2000 A YEAR INTO AN INDIVIDUAL RETIREMENT ACCOUNT WHERE THE MONEY CAN GROW TAXDEFERRED UNTIL THEY TAKE IT OUT WHILE EVERYONE CAN CONTRIBUTE TO AN IRA CONTRIBUTIONS AREN'T TAX DEDUCTIBLE FOR PEOPLE COVERED BY A PENSION PLAN OR FOR THOSE WHOSE INCOME IS ABOVE CERTAIN LEVELS INDIVIDUALS WITH SELFEMPLOYMENT INCOME FROM SUCH ACTIVITIES AS CONSULTING FREELANCE WORK AND SPEAKING ENGAGEMENTS CAN SHELTER SOME OF IT IN A KEOGH OR SEP FOR SELFEMPLOYED INDIVIDUALS 9302260019 930226 INTERNATIONAL WORLD ECONOMY ANTIDUMPING LAWS KEEP OUT GOODS THAT PACTS WOULD ORDINARILY LET IN BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER HEWLETTPACKARD CO SOLD SOME MEDICAL EQUIPMENT TO AN ISRAELI HOSPITAL LAST SUMMER A LOCAL COMPANY PROTESTED IT ACCUSED THE US SELLER OF DUMPING PRODUCTS AT UNFAIRLY LOW PRICES TO STEAL AWAY ITS BUSINESS WHEN US STEEL COMPANIES CUT PRICES IN MEXICO AND CANADA STEELMAKERS THERE SOUGHT ANTIDUMPING ACTION AGAINST THEM ABOUT THE TIME US COMPANIES WERE SEEKING SIMILAR PROTECTION BACK HOME FROM COMPETITORS IN 19 OTHER NATIONS AND AS PHILIP MORRIS COS EXPORTS MORE OF ITS FOOD PRODUCTS INTO EUROPE IT INCREASINGLY RUNS AFOUL OF VIGOROUS ANTIDUMPING RULES OF THE EUROPEAN COMMUNITY AS THESE CASES INDICATE THERE'S MUCH ACTION NOWADAYS AGAINST DUMPING A PREDATORY TRADE PRACTICE THAT NEARLY EVERYONE OPPOSES THOUGH FEWER CAN DEFINE WITH PRECISION AND BECAUSE THE LAWS CAN BE AMBIGUOUS ANTIDUMPING ACTIONS ARE NOW USED MORE OFTEN BY MORE NATIONS TO KEEP OUT FOREIGN GOODS THAT TRADE AGREEMENTS WOULD OTHERWISE ADMIT IN THEORY AT LEAST THESE LAWS EXIST TO COMBAT HARSH TRADING PRACTICES THAT CAN SERIOUSLY DAMAGE DOMESTIC INDUSTRY AND FEW EXPERTS WANT TO BAN THEM ENTIRELY THOSE FOUND GUILTY MUST PAY EXTRAHIGH TARIFFS SO THEY CAN'T FLOOD MARKETS WITH UNREALISTICALLY CHEAP PRODUCTS PERHAPS TO DRIVE OUT DOMESTIC RIVALS GAIN A MONOPOLY AND THEN JACK UP PRICES THAT PATTERN WOULD INFLICT GRAVE HURT ON LOCAL MANUFACTURERS WORKERS AND CONSUMERS FEW ELECTED GOVERNMENTS COULD TOLERATE IT AND SURVIVE IN THE GUISE OF LEGAL PROCEDURES IN BOTH WASHINGTON AND BRUSSELS WHERE THE EC BUREAUCRACY IS LOCATED A LOT OF PROTECTIONISM IS TAKING PLACE COMPLAINS ANDREAS VAN AGT EC AMBASSADOR TO THE US ELSEWHERE TOO ONLY EIGHT NATIONS HAD ANTIDUMPING LAWS ENACTED OR PENDING IN 1980 LAST YEAR THE TOTAL WAS 42 COUNTING THE 12MEMBER EC AS ONE INCLUDED ARE ARGENTINA COLOMBIA SOUTH KOREA AND JAPAN MANY ESSENTIALLY COPY WHAT THE US STARTED IN 1921 WHEN PROTECTIONMINDED POLITICIANS FIRST PASSED LAWS TO EXCLUDE WHAT THEY DEEMED UNFAIR COMPETITION IN FACT SOME STATES JUSTIFY RETALIATION AGAINST US PRODUCTS BY SAYING THEY ONLY DO WHAT THE AMERICANS DO A CASE OF THE BITER BEING BITTEN WE ARE THE WORLD'S TECHNOLOGICAL LEADERS IN DUMPING LAWS SAYS ROBERT LITAN AN ECONOMIST AT THE BROOKINGS INSTITUTION IN WASHINGTON WHO CALLS THEM THE NEW PROTECTION OF CHOICE SOME ANTIDUMPING CASES ALSO ARISE BECAUSE MANY NATIONS GIVE THEIR HIGHTECHNOLOGY INDUSTRIES EXTRA PROTECTION THEY CONTEND SHIELDING HIGHTECH COMPANIES FROM FOREIGN RIVALS PROMOTES RESEARCH AT HOME PRESIDENT CLINTON SHARES THAT VIEW AS DO LEADERS IN EUROPE AND JAPAN BUT FREETRADERS SAY THESE LAWS TOO OFTEN SHIELD OLDLINE BUSINESSES THAT DON'T DESERVE IT THEY ARGUE THAT US LEGAL DEFINITIONS MAKE IT POSSIBLE TO CHARGE ALMOST ANYONE WITH DUMPING USUALLY WITH SUCCESS BECAUSE THE ACCUSED MUST SEEK TO PROVE THEIR INNOCENCE UNDER PROCEDURES TILTED AGAINST THEM AND WHILE THE US SYSTEM IS FAIRLY OPEN THOSE ELSEWHERE CAN BE SECRET AND ARBITRARY MEANWHILE US MULTINATIONALS WORRY ABOUT THEIR EXPORTS AS THEY FIND USSTYLE DUMPING LAWS TURNED AGAINST THEM OVERSEAS THUS COMPANIES LIKE CATERPILLAR INC HEWLETTPACKARD SUN MICROSYSTEMS INC AND CARGILL INC HAVE A 63MEMBER EMERGENCY COMMITTEE TO LOBBY AGAINST TRADE RESTRICTIONS THAT MIGHT UNDO GAINS WON UNDER BROADER TRADE AGREEMENTS TO BE COMPETITIVE OUR MEMBERS MUST WIN IN THE GLOBAL MARKETPLACE GARY HORLICK THEIR COUNSEL TOLD CONGRESS LAST YEAR THEY ARE ESPECIALLY CONCERNED ABOUT ANTIDUMPING RULES IN A GLOBAL TREATY BEING NEGOTIATED UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THESE ARE IN THE DUNKEL TEXT AN OVERALL GATT COMPROMISE ADVANCED BY THE SWISS DIPLOMAT WHO OVERSEES THE TALKS MANY EXPORTERS CONSIDER ITS TERMS TOO RESTRICTIVE BUT CONCEDE THEY CAN'T GET MUCH BETTER MOREDEFENSIVE AMERICAN INDUSTRIES SUCH AS STEEL WANT TOUGHER TERMS THE WHITE HOUSE MUST DECIDE SOON WHETHER TO REOPEN THE ISSUE IN THE 108NATION GATT NEGOTIATIONS WILLIAM REINSCH A SENATE STAFFER WHO LIKES TOUGH TERMS SAYS CONGRESS WILL REJECT ANY GATT TREATY THAT INCLUDES THE DUNKEL PROPOSAL THE CONSEQUENCES OF ALLOWING PEOPLE TO DUMP ARE FAR GREATER THAN EVER BEFORE HE SAYS SUCH TALK DISMAYS LEADING US EXPORTERS THEY SAY THE GROWING WORLDWIDE USE OF DUMPING LAWS PENALIZES THOSE COMPANIES BEST EQUIPPED TO COMPETE OVERSEAS WHILE HELPING THOSE WHO CAN'T AN OFFICIAL OF THEIR COMMITTEE CALLS IT A POLICY OF SHOOT THE WINNERS 9302260018 930226 SPORTS SOCCER BACKERS KICK IN FOR NEW INDOOR LEAGUE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF SPORTS HEAVY HITTERS LED BY LOS ANGELES LAKERS OWNER JERRY BUSS IS STARTING A NEW INDOOR SOCCER LEAGUE LESS THAN A YEAR AFTER THE MAJOR SOCCER LEAGUE FOLDED THE CONTINENTAL INDOOR SOCCER LEAGUE WILL START PLAY JUNE 17 WITH EIGHT TEAMS LEAGUE OFFICIALS ARE EXPECTED TO ANNOUNCE TODAY IN LOS ANGELES THE LEAGUE BELIEVES IT WILL BE SUCCESSFUL WHERE OTHERS HAVE FAILED BY LIMITING PLAY TO THE SUMMER WHEN THERE'S LESS COMPETITION FOR FANS AND ARENAS AND BY KEEPING COSTS DOWN THROUGH LOWER SALARIES THE CONTINENTAL TEAMS WILL BE IN ANAHEIM CALIF DALLAS LOS ANGELES MONTERREY MEXICO PHOENIX PORTLAND ORE SACRAMENTO CALIF AND SAN DIEGO TEAMS IN CHARLOTTE NC PITTSBURGH AND LAS VEGAS WOULD BEGIN PLAY IN 1994 FRANCHISE FEES WILL INTIALLY BE 50000 WHICH IS RELATIVELY LOW OTHER OWNERS INCLUDE JERRY COLANGELO OWNER OF THE NATIONAL BASKETBALL ASSOCIATION'S PHOENIX SUNS JIM THOMAS OWNER OF THE NBA'S SACRAMENTO KINGS DONALD CARTER OWNER OF THE NBA'S DALLAS MAVERICKS AND HOWARD BALDWIN COOWNER OF THE PITTSBURGH PENGUINS OF THE NATIONAL HOCKEY LEAGUE STRONG OWNERS ARE THE KEY TO STARTING A PROFESSIONAL SPORTS LEAGUE SAYS CHARLES REICHBLUM A FOUNDER OF WORLD TEAM TENNIS WHICH FAILED IN 1978 AFTER FOUR YEARS BECAUSE ITS OWNERS LACKED DEEP POCKETS OTHER LEAGUES INCLUDING THE FORMER NORTH AMERICAN SOCCER LEAGUE WERE DRAGGED DOWN BY THE FINANCIAL PROBLEMS OF CERTAIN MEMBER TEAMS THAT FOLDED LEAVING FEWER COMPETITORS THE CONTINENTAL LEAGUE IS STRUCTURED SO TEAMS CAN TURN A PROFIT WITHOUT MUCH REVENUE EACH TEAM INITIALLY WILL HAVE A PLAYER PAYROLL OF 160000 FAR BELOW THE 1 MILLIONPLUS MARK MSL TEAMS ONCE SPENT THE BEST PLAYERS WILL RECEIVE 3000 A MONTH DURING THE SEASON WHILE SECONDTIER PLAYERS WILL GET 2000 TOTAL TEAM OPERATING BUDGETS WILL BE ABOUT 850000 TO 1 MILLION A THIRD OF WHAT MSL TEAMS ONCE OPERATED ON PLAYING IN THE SUMMER ALSO SHOULD HELP CUT EXPENSES BECAUSE ARENA RENTS ARE ABOUT ONETHIRD LESS HE SAYS AND THE LEAGUE WON'T HAVE TO COMPETE WITH BASKETBALL FOOTBALL AND HOCKEY FOR FANS BUT THE BIG QUESTION IS WHETHER FANS WANT TO SPENT SUMMER NIGHTS INDOORS I DON'T KNOW IF IT WORKS IN THE SUMMER CONCEDES DR BUSS BUT I DO KNOW IT DOESN'T WORK IN THE WINTERTIME DR BUSS OWNED THE LOS ANGELES LAZERS OF THE MSL AND LOST MILLIONS SPENDING SO LITTLE HOWEVER COULD LEAVE THE LEAGUE WITH INEXPERIENCED PLAYERS YOU CAN'T FIELD MUCH OF A TEAM FOR THAT SAYS BILL SAGE COMMISSIONER OF THE AMERICAN PROFESSIONAL SOCCER LEAGUE WHICH HAS SEVEN TEAMS PLAYING OUTDOORS DURING THE SUMMER APSL TEAM PAYROLLS AVERAGE BETWEEN 350000 AND 400000 RON WEINSTEIN CONTINENTAL COMMISSIONER SAYS PAYROLLS WILL RISE WITH TEAM REVENUES FLEDGLING SPORTS LEAGUES USUALLY HAVE TOUGH TIMES ESTABLISHING THEMSELVES IN THE US ESPECIALLY IN SOCCER NASL ONE OF THE FIRST US SOCCER LEAGUES LASTED ABOUT 15 YEARS IN VARIOUS FORMS BOTH OUTDOORS AND INDOORS UNTIL ITS DEMISE IN 1985 THE MSL STARTED IN 1978 AS THE MAJOR INDOOR SOCCER LEAGUE BUT CRUMBLED LAST YEAR AFTER IT WAS WHITTLED DOWN TO FIVE TEAMS FROM A HIGH OF 14 BOTH LEAGUES FAILED IN LARGE PART BECAUSE OF MONEYLOSING TEAMS WITHIN THEIR OPERATIONS STILL GORDON BRADLEY HEAD COACH AND VICE PRESIDENT OF THE NASL'S NEW YORK CLUB SAYS MORE CHILDREN ARE PLAYING SOCCER THUS BROADENING THE FAN BASE THE GAME IS HERE TO STAY SAYS MR BRADLEY NOW HEAD SOCCER COACH AT GEORGE MASON UNIVERSITY IN FAIRFAX VA INDEED THE CONTINENTAL LEAGUE IS HOLDING DISCUSSIONS WITH THE FAMILY CHANNEL ABOUT TELEVISING ONE GAME A WEEK AND SOCCER SHOULD GET A BIG BOOST NEXT YEAR WHEN THE US HOSTS THE WORLD CUP THE NATIONAL PROFESSIONAL SOCCER LEAGUE AN INDOOR LEAGUE THAT PLAYS IN THE WINTER SET A NEW ATTENDANCE MARK FOR ITS 13 TEAMS THIS SEASON FINANCIALLY HOWEVER TEAMS HAVE HAD UPS AND DOWNS A SPOKESMAN CONCEDES IN THE APSL NO ONE IS MAKING MONEY SAYS MR SAGE YET THAT'S NOT STOPPING THE LEAGUE FROM PLANNING A NEW NATIONAL OUTDOOR SOCCER LEAGUE FOR 1995 9302260017 930226 INTERNATIONAL BRITISH AIR VIRGIN ATLANTIC NEARING A SETTLEMENT OF DIRTY TRICKS' DISPUTE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH AIRWAYS PLC AND VIRGIN ATLANTIC AIRWAYS WILL MORE LIKELY THAN NOT ANNOUNCE AN AGREEMENT TODAY ON THEIR LONGRUNNING DISPUTE OVER BRITISH AIRWAYS' DIRTY TRICKS CAMPAIGN PEOPLE CLOSE TO THE TALKS SAID THE PEACE TALKS BETWEEN THE TWO UK AIRLINES WERE SCHEDULED TO GO THROUGH THE NIGHT AND THE SOURCES SAID THE NEGOTIATORS WERE BATTLING OVER WHEN AN AIRLINE CAN LEGITIMATELY POACH THE COMPETITION'S PASSENGERS THEY ADDED THAT BRITISH AIRWAYS BASICALLY HAS AGREED TO PAY VIRGIN SOMEWHERE BETWEEN 10 MILLION 143 MILLION AND 15 MILLION ON TOP OF AN EARLIER PAYMENT RELATED TO A LIBEL SUIT FOR DAMAGES STEMMING FROM THE DIRTY TRICKS CAMPAIGN BRITISH AIRWAYS CONDUCTED AGAINST ITS SMALLER COMPETITOR IF AN AGREEMENT IS REACHED VIRGIN A UNIT OF VIRGIN GROUP PLC SAYS IT WILL DROP THREATS TO TAKE BRITISH AIRWAYS TO COURT IN THE US AND EUROPE FOR ANTITRUST ACTIVITIES THE TWO AIRLINES HAVE BEEN IN AROUNDTHECLOCK DISCUSSIONS SINCE MONDAY WHEN VIRGIN CHAIRMAN RICHARD BRANSON ISSUED AN ULTIMATUM TO BRITISH AIRWAYS THE FLAMBOYANT MR BRANSON GAVE BRITISH AIRWAYS 24 HOURS TO PUT FORWARD A SENSIBLE SETTLEMENT OFFER THE SUBSEQUENT NEGOTIATIONS HAVE LED VIRGIN TO BACK OFF ANY DEADLINES THE TWO SIDES HOPE TO BRING TO A CLOSE A 14MONTH DISPUTE OVER A BRITISH AIRWAYS CAMPAIGN IN WHICH THE GIANT UK AIRLINE TAPPED INTO VIRGIN'S COMPUTER SYSTEM AND USED A VARIETY OF MEANS TO PERSUADE VIRGIN PASSENGERS TO SWITCH AIRLINES VIRGIN AND MR BRANSON ALREADY WON 610000 AND AN APOLOGY FROM BRITISH AIRWAYS IN AN OUTOFCOURT SETTLEMENT TO A LIBEL SUIT FILED BY VIRGIN VIRGIN FILED THE SUIT AFTER BRITISH AIRWAYS ACCUSED ITS SMALLER COMPETITOR OF FABRICATING CLAIMS OF A DIRTY TRICKS CAMPAIGN AS A PUBLICITY STUNT THE STORM OF PUBLICITY THAT FOLLOWED THAT SETTLEMENT LED FORMER BRITISH AIRWAYS CHAIRMAN LORD KING TO RETIRE EARLY IN ADDITION THE AIRLINE'S BOARD APPOINTED SIR MICHAEL ANGUS TO THE NEW POST OF NONEXECUTIVE DEPUTY CHAIRMAN CHARGED WITH MONITORING CORPORATE CONDUCT HOWEVER VIRGIN SAID AT THE TIME OF THE LIBEL SETTLEMENT THAT IT WOULD CONTINUE TO SEEK PAYMENTS FOR DAMAGES SUFFERED AS A RESULT OF BRITISH AIRWAYS' ACTIONS BUT VIRGIN IS SAID TO BE WILLING TO ACCEPT A LOWER DAMAGES PAYMENT IF AN AGREEMENT FROM BRITISH AIRWAYS ON FUTURE CONDUCT IS INCLUDED IN THE SETTLEMENT THE PEOPLE CLOSE TO THE TALKS SAID THIS ISSUE HAS BEEN THE SINGLE BIGGEST STICKING POINT AS BRITISH AIRWAYS HAS ARGUED THAT CERTAIN TYPES OF POACHING CONSTITUTE NORMAL BUSINESS BEHAVIOR BUT BOTH SIDES APPARENTLY ARE EAGER TO AVOID A LONG EXPENSIVE BATTLE IN THE US COURTS BRITISH AIRWAYS IN PARTICULAR WANTS TO END THE SCANDAL SURROUNDING ITS BEHAVIOR SINCE IT MAY DAMAGE CHANCES FOR US REGULATORY APPROVAL OF THE AIRLINE'S PLANNED LINKUP WITH USAIR 9302260016 930226 CLINTON SIGNALS NEW TAX ON CIGARETTES OTHER ITEMS TO FINANCE HEALTH PROGRAM BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SIGNALED THAT HE'S LIKELY TO CALL FOR A NEW LEVY ON CIGARETTES AND PERHAPS OTHER ITEMS AFFECTING HEALTH TO PAY FOR THE OVERHAUL OF THE MEDICALCARE SYSTEM HE'LL PROPOSE THE PRESIDENT RESPONDING TO QUESTIONS BEFORE A WHITE HOUSE MEETING WITH BUSINESS AND LABOR LEADERS REASSURED HEALTHCARE ADVOCATES THAT HIS PLAN WOULD DEAL WITH EXPANDED COVERAGE AS WELL AS COST CONTROL MR CLINTON WAS GUARDED IN HIS REMARKS BUT HE DID FOR THE FIRST TIME PUBLICLY CONCEDE THAT MORE REVENUE IS REQUIRED TO ADDRESS THE ACCESS QUESTION WHICH AT TIMES HAS BEEN PLAYED DOWN IN THE ADMINISTRATION'S DISCUSSIONS ON REFORM YOU DO HAVE TO FIND SOME WAY TO RECOVER SOME REVENUES TO COVER PEOPLE WHO NOW DON'T HAVE COVERAGE IF THE GOVERNMENT PAYS FOR THE COVERAGE MR CLINTON SAID AND THAT'S AN IMPORTANT PART OF STOPPING THE COST SHIFTING WHICH HAS LED TO SO MUCH INCREASE IN PRIVATE INSURANCE BUT MR CLINTON WASN'T PRECISE ON WHO WOULD PAY NEW TAXES PERHAPS CONCERNED THAT HE HAD ALREADY BROKEN HIS PROMISE TO CUT TAXES FOR THE MIDDLE CLASS MR CLINTON AT FIRST TRIED TO LESSEN THE BLOW THAT HEALTHCARE TAXES MIGHT BRING THERE ARE LOTS OF OPTIONS WE ARE LOOKING AT NOW WHICH WOULDN'T NECESSARILY INCREASE MIDDLECLASS TAX BURDENS MR CLINTON SAID THERE ARE A WHOLE RANGE OF OPTIONS FOR DEALING WITH THIS WHICH IS WHY I ASKED YOU TO LET US FINISH THIS PROCESS OF REVIEW BEFORE WE TRY TO PICK IT APART WHEN HE WAS ASKED IF THESE COMMENTS RULED OUT SOCALLED SIN TAXES HE DIFFERENTIATED BETWEEN THESE LEVIES AND MIDDLECLASS TAXES ALTHOUGH EXPERTS SAY THE POOR AND MIDDLECLASS ARE HIT HARDEST BY SUCH TAXES I THINK HEALTHRELATED TAXES ARE DIFFERENT MR CLINTON SAID I THINK CIGARETTE TAXES FOR EXAMPLE ARE DIFFERENT HE SAID WE ARE SPENDING A TON OF MONEY IN PRIVATE INSURANCE AND IN GOVERNMENT TAX PAYMENTS TO DEAL WITH THE HEALTHCARE PROBLEMS OCCASIONED BY BAD HEALTH HABITS AND PARTICULARLY SMOKING WHICH IS COSTING US A LOT OF MONEY MR CLINTON'S HEALTH TASK FORCE HEADED BY HIS WIFE HILLARY IS STUDYING MORE THAN 20 POSSIBLE TAX MEASURES BESIDES RAISING SIN TAXES INCLUDING TAXING INSURANCE PREMIUMS INCREASING SOME KIND OF CORPORATE TAX OR INSTITUTING A NEW ONE AND TAXING EMPLOYERPROVIDED HEALTH BENEFITS THAT EXCEED A CERTAIN AMOUNT THE PRESIDENT'S OVERALL ECONOMIC PLAN GOT A BOOST WHEN A GROUP OF BUSINESS AND LABOR LEADERS ANNOUNCED THEIR SUPPORT BUT IN A PRIVATE SESSION WITH THE BUSINESS COUNCIL THE PRESIDENT WAS PRESSED TO COME UP WITH MORE SPENDING CUTS MR CLINTON ACCORDING TO A PARTICIPANT CONCEDED THAT MORE CUTS COULD BE MADE AND LISTED DEFENSE AS A POSSIBILITY BUT HE CAUTIONED THAT THERE WAS A REAL QUESTION OF WHETHER ADDITIONAL REDUCTIONS WOULD BE COUNTERPRODUCTIVE HE WAS SAYING WOULD A FEW BILLION HERE OR THERE REALLY MAKE A BIG DIFFERENCE' SAID ONE BUSINESS LEADER ANOTHER MESSAGE SENT BY THE PRESIDENT WAS THAT HE HAD DONE WHAT IS POLITICALLY CORRECT IN TERMS OF WHAT IS PASSABLE THE BUSINESS LEADER SAID MOREOVER MR CLINTON OFFERED THE SAME CHALLENGE TO THE BUSINESS LEADERS THAT HE DELIVERED TO REPUBLICANS GIVE ME SOME SPECIFICS THE PRESIDENT DID APPEAR TO BE GROWING FRUSTRATED THAT PEOPLE CALLING FOR MORE CUTS DON'T HAVE SPECIFICS STILL THE BUSINESS LEADERS MOSTLY SUPPORTED THE PRESIDENT AND THE GROUP WAS SURPRISED WHEN A CONSERVATIVE REPUBLICAN BUSINESS LEADER SAID HE HADN'T VOTED FOR THE DEMOCRAT BUT THAT THE PRESIDENT'S SPEECH TO THE CONGRESS WAS THE BEST HE HAD HEARD IN MORE THAN 20 YEARS HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9302260015 930226 REAL ESTATE CONVENTION NOTEBOOK BY JIM CARLTON HOME BUILDERS SQUEEZED BY SOARING LUMBER COSTS APPEAR READY TO EMBRACE ALTERNATIVE MATERIALS THE NATIONAL ASSOCIATION OF HOME BUILDERS MEETING IN LAS VEGAS LAST WEEKEND FOR ITS ANNUAL CONVENTION FOUND ITS MEMBERS' BIGGEST CONCERN IS LUMBER PRICES WHICH HAVE JUMPED 85 SINCE OCTOBER BECAUSE OF INCREASED HOUSING DEMAND AND TIGHT TIMBER SUPPLY A POLL BY THE TRADE GROUP FOUND 40 OF BUILDERS AT THE SHOW INDICATING THEY WOULD USE ENGINEERED WOOD AND 9 SAYING THEY WOULD USE STEEL THIS SIGNALS A DEPARTURE FOR AN INDUSTRY LOATH TO CHANGE ESTABLISHED WAYS LUMBER IS A PRODUCT WE KNOW AND UNDERSTAND SAYS J ROGER GLUNT PRESIDENT OF THE BUILDERS' GROUP ENGINEERED WOOD IS ESSENTIALLY SMALLER PIECES OF LUMBER THAT ARE BONDED TOGETHER WITH ADHESIVES OR OTHER MATERIALS ITS SUPPLY IS MORE STABLE THAN TRADITIONAL LUMBER BECAUSE IT CAN BE MADE FROM SMALLER TREES ITS USE HAS BEEN RARE BUT IS BECOMING MORE COMMON STEEL STUDS HAVE BEEN USED IN THE FRAMES OF ONLY ABOUT 3 OF AMERICAN HOMES STEEL SCRAP WAS USED RECENTLY TO FRAME A BOWIE MD HOME IN A TEST PROJECT SPONSORED BY THE BUILDERS' TRADE GROUP THOUGH STEEL IS USED WIDELY IN COMMERCIAL CONSTRUCTION DELIVERY ISN'T YET EXTENSIVE ENOUGH TO ACCOMMODATE NEEDS OF BUILDERS AWAY FROM MAJOR DISTRIBUTION CENTERS STEEL AND ENGINEERED WOOD STILL COST MORE THAN TRADITIONAL LUMBER BUT THEY ARE DRAWING INTEREST BECAUSE THEIR PRICES ARE MORE STABLE RAY REDDEN A MARIETTA GA BUILDER SAYS HE JUST BOUGHT SOME ENGINEERED WOOD BECAUSE HE COULD LOCK IN A PRICE SIX MONTHS IN ADVANCE VS AS LITTLE AS A DAY FOR LUMBER OLDER AND PRESUMABLY WISER THE FEDERAL HOME LOAN MORTGAGE CORP IS GETTING BACK INTO THE APARTMENT BUSINESS ON WHICH IT GOT BURNED BADLY IN THE 1980S FREDDIE MAC OFFICIALS IN LAS VEGAS FOR THE BUILDERS' SHOW SAID THEY WILL BUY OR REFINANCE UP TO 1 BILLION IN MULTIFAMILY LOANS THIS YEAR AFTER A THREEYEAR ABSENCE THE STOCKHOLDEROWNED CORPORATION ESTABLISHED BY CONGRESS TO PROVIDE LIQUIDITY TO THE MORTGAGE MARKET PULLED BACK FROM THE APARTMENT BUSINESS IN 1990 AFTER DEFAULTS SOARED IN PROPERTIES IT UNDERWROTE IN THE NORTHEAST AND SOUTHEAST LIKE MANY FINANCIAL INSTITUTIONS FREDDIE MAC GOT SUCKED INTO THE OVERBUILDING MORASS OF THE '80S APARTMENT MARKET IT COMPOUNDED ITS WOES BY TREATING APARTMENT LOANS IDENTICALLY TO ITS HUGE STABLE OF MORTGAGES ON SINGLEFAMILY HOMES AS FREDDIE MAC LEARNED THE TWO TYPES OF LOANS DIFFER IN SEVERAL IMPORTANT WAYS APARTMENT INVESTORS ARE THREE TIMES MORE LIKELY THAN A HOMEOWNER TO DEFAULT ON A LOAN WHEN EQUITY IS WIPED OUT BY PLUNGING VALUES IN ADDITION CASH FLOW AND THE ABILITY TO SERVICE DEBT ARE CRITICAL DETERMINANTS OF AN APARTMENT BORROWER'S HEALTH AND FREDDIE MAC NOW CONCEDES IT IGNORED THESE BY THE FALL OF 1990 MORE THAN 6 OF THE LOANS IN FREDDIE MAC'S 105 BILLION APARTMENT PORTFOLIO WERE IN DEFAULT SAYS JONATHAN E GRAY AN ANALYST AT SANFORD C BERNSTEIN & CO ITS DEFAULT RATES REACHED 25 IN NEW YORK AND ATLANTA FREDDIE MAC FINALLY STOPPED MAKING APARTMENT LOANS IN OCTOBER 1990 ITS PORTFOLIO NOW REDUCED TO 9 BILLION FREDDIE MAC HAS DECIDED TO STEP BACK IN WITH MUCH TOUGHER UNDERWRITING STANDARDS EVERY MULTIFAMILY TRANSACTION IS DIFFERENT SAYS LELAND C BRENDSEL FREDDIE MAC'S CHIEF EXECUTIVE WE HAVE TO KICK THE TIRES AND CHECK UNDER THE HOOD ON EVERY ONE WE MAKE THE HOME BUILDERS' TRADE GROUP ENDORSED PRESIDENT CLINTON'S ECONOMIC PROGRAM IN LAS VEGAS AT THE SAME CONVENTION THE GROUP'S DESIGNATED PANEL OF ECONOMISTS LAMBASTED THE PLAN BUILDERS LIKE THE PLAN ASSUMING THE SPENDING CUTS MATERIALIZE BECAUSE THEY SAY IT WOULD REDUCE UNEMPLOYMENT HELP KEEP INTEREST RATES LOW AND GENERALLY FUEL HOUSING DEMAND YET THE CONSENSUS OF A PANEL OF FOUR ECONOMISTS ADDRESSING THE CONVENTION WAS THAT THE PLAN IS FLAWED AND COULD PUSH UP INTEREST RATES AND HURT CONSUMER CONFIDENCE THREE OF THE FOUR ECONOMISTS ASSAILED THE INCREASED TAXATION IT HITS THE CONSUMER RIGHT BETWEEN THE EYES JUST WHEN HE IS GETTING OFF THE MAT STEPHEN S ROACH COCHIEF ECONOMIST FOR MORGAN STANLEY & CO TOLD REPORTERS BEFORE THE TALK TO BUILDERS NORMAN ROBERTSON CONSULTING ECONOMIST AND FORMER CHIEF ECONOMIST AT MELLON BANK TOLD THE BUILDERS LONGTERM RATES COULD GO RIGHT BACK UP AGAIN AND THAT WOULD BE VERY DAMAGING FOR YOUR INDUSTRY THE OTHER HARDLINER WAS JAMES F SMITH A UNIVERSITY OF NORTH CAROLINA PROFESSOR OF FINANCE AND ECONOMIST WHO SAID OF THE CLINTON PROGRAM IF ENACTED AS IS WE WILL PROBABLY REDUCE ECONOMIC GROWTH 1 THIS YEAR 2 NEXT YEAR AND HAVE A RECESSION BY 1995 THE FOURTH PANEL MEMBER DAVID SEIDERS THE TRADE GROUP'S CHIEF ECONOMIST SAID HE SUPPORTED THE PLAN BUT HAD RESERVATIONS ABOUT THE TAX INCREASES BECAUSE THE PANELISTS WERE SCHEDULED SIX MONTHS IN ADVANCE OFFICIALS OF THE HOME BUILDERS' GROUP SAY THEY HAD NO WAY OF KNOWING WHAT WOULD HAPPEN KENT W COLTON CHIEF EXECUTIVE OF THE TRADE GROUP SAYS HE WOULDN'T HAVE WANTED THE PANEL CENSORED ANYWAY WE LIKE PEOPLE TO SAY WHAT'S ON THEIR MINDS MR COLTON SAYS IN THE END YOU DON'T KNOW WHAT AN ECONOMIST IS GOING TO SAY IN THE TRADE GROUP'S SURVEY OF BUILDERS AT THE CONVENTION 53 RATED THE ECONOMIC PROSPECTS FOR 1993 GOOD TO EXCELLENT UP FROM 29 LAST YEAR APARTMENTS OFFER THE BEST CURRENT INVESTMENT POTENTIAL IN REAL ESTATE SAYS A REPORT RELEASED AT THE CONVENTION BY KENNETH LEVENTHAL & CO LOS ANGELES IT CITES FALLING VACANCY RATES AND A RECENT LACK OF NEW CONSTRUCTION 9302260014 930226 WHAT'S NEWS WORLDWIDE CLINTON AND YELTSIN AGREED TO HOLD A SUMMIT ON APRIL 4 THE ONEDAY MEETING BETWEEN THE TWO LEADERS WOULD GIVE THE US A CHANCE TO STRESS ITS SUPPORT FOR THE RUSSIAN PRESIDENT'S EFFORTS TO ADVANCE DEMOCRACY AND ECONOMIC REFORMS THE SUMMIT IS TO TAKE PLACE IN A THIRD COUNTRY STILL TO BE SELECTED IN MOSCOW MEANWHILE PARLIAMENT SNUBBED YELTSIN BY REFUSING TO DISCUSS HIS PROPOSALS TO RESOLVE A CONSTITUTIONAL CRISIS THE US AND RUSSIA WILL SEND INVITATIONS TO ARAB STATES AND ISRAEL TO ATTEND A NEW ROUND OF PEACE TALKS IN WASHINGTON IN APRIL WE'RE SIMPLY PUTTING THAT FORWARD AS OUR BEST JUDGMENT ABOUT WHEN THE PARTIES WOULD LIKE TO RECOMMENCE NEGOTIATIONS SECRETARY OF STATE CHRISTOPHER SAID IN GENEVA AFTER MEETING WITH RUSSIA'S FOREIGN MINISTER CHRISTOPHER DISCUSSED SUBSTANTIAL AID FOR MOSCOW DURING HIS MEETING WITH KOZYREV BUT DIDN'T TALK ABOUT SPECIFIC FIGURES US OFFICIALS SAID THE PRESIDENT ORDERED THE PENTAGON TO MOUNT RELIEF AIRDROPS INTO BOSNIA CLINTON SAID THE AIRDROPS WOULD BE TEMPORARY AND CARRIED OUT STRICTLY FOR HUMANITARIAN PURPOSES AND IN A BID TO HEAD OFF SERB RETALIATION HE SAID THAT NO COMBAT AIRCRAFT WOULD ESCORT THE UNARMED TRANSPORT PLANES AND THAT AID WOULD BE DELIVERED TO ANY COMMUNITY IN NEED REGARDLESS OF ETHNIC OR RELIGIOUS AFFILIATION WASHINGTON OFFICIALS DIDN'T SAY WHEN THE OPERATION WOULD BEGIN BOSNIAN SERB LEADERS TOLD THEIR TROOPS NOT TO SHOOT AT THE US PLANES BUT WARNED THAT THE PLANNED AIRDROPS COULD WORSEN FIGHTING AND IMPEDE PEACE TALKS A FEDERAL TRIAL OPENED IN LOS ANGELES FOR FOUR WHITE POLICEMEN ACCUSED OF VIOLATING THE CIVIL RIGHTS OF RODNEY KING THE LEAD PROSECUTOR LAID OUT THE GOVERNMENT'S CASE IN THE MARCH 1991 VIDEOTAPED BEATING OF THE BLACK MOTORIST ARGUING THAT THE OFFICERS REPEATEDLY VIOLATED POLICE POLICY DURING AND AFTER THE ATTACK MICHIGAN'S GOV ENGLER SIGNED AN IMMEDIATE BAN ON ASSISTED SUICIDES HOPING TO STOP DR JACK KEVORKIAN FROM ASSISTING MORE PEOPLE IN TAKING THEIR LIVES THE STATE LEGISLATURE PASSED THE BAN EARLIER IN THE DAY BUT AN ATTORNEY FOR KEVORKIAN WHO HAS AIDED IN 15 SUICIDES SINCE 1990 SAID THE SUICIDEMACHINE INVENTOR PLANS TO IGNORE THE LAW USLED FORCES MOBILIZED TANKS AND USED HEAVY WEAPONS ON SOMALI GUNMEN DURING EIGHT HOURS OF BATTLES IN MOGADISHU THE CLASHES IN SOMALIA'S CAPITAL WERE THE WORST SINCE THE MULTINATIONAL FORCE LANDED IN DECEMBER ONE SOMALI WAS KILLED AND THREE MARINES WERE WOUNDED THE UN SAID IT WAS CONSIDERING EVACUATING AID WORKERS ASPIN LEFT THE HOSPITAL AND RETURNED TO HIS PENTAGON DESK BUT DOCTORS SAID THE DEFENSE SECRETARY HAS AGREED TO HAVE A CARDIAC PACEMAKER IMPLANTED TO CONTROL HIS HEART CONDITION ASPIN 54 WHO WAS HOSPITALIZED ON SUNDAY AFTER EXPERIENCING SHORTNESS OF BREATH TOLD REPORTERS THERE WOULD BE NO CHANGE IN HIS JOB SCHEDULE A FUNERAL MASS IN HAITI'S CAPITAL TURNED INTO A POLITICAL RALLY DEMANDING THE RETURN OF OUSTED LEADER ARISTIDE A PRIEST TOLD 2000 WORSHIPERS THAT THE DEATHS OF HUNDREDS OF HAITIANS IN LAST WEEK'S FERRY DISASTER WOULD BE AVENGED AND THE CROWD CHANTED ARISTIDE OR DEATH LATER A GROUP OF ARISTIDE OPPONENTS ARRIVED AND ASSAULTED A BISHOP INDIAN POLICE FIRED TEAR GAS AT CROWDS ARRESTED LEADERS OF THE MAIN HINDU NATIONALIST PARTY IN NEW DELHI AND IMPRISONED ABOUT 60000 PEOPLE THROUGHOUT INDIA IN AN ATTEMPT TO THWART AN ANTIGOVERNMENT RALLY AN OPPOSITION LEADER WAS KNOCKED UNCONSCIOUS ITALY'S RULING COALITION SURVIVED A NOCONFIDENCE VOTE IN PARLIAMENT BY A 310265 MARGIN BUT THE ALLEGED INVOLVEMENT OF SEVERAL MORE PUBLIC FIGURES IN A CORRUPTION SCANDAL DEEPENED THE COUNTRY'S POLITICAL CRISIS A CENTRAL ANGOLAN CITY WAS REPORTED TO BE UNDER CONSTANT SHELLING WITNESSES SAID DECOMPOSED BODIES LINED HUAMBO'S STREETS AFTER FIGHTING BETWEEN GOVERNMENT TROOPS AND UNITA GUERRILLA FORCES CASTRO SAID HE WOULD LIKE TO STEP DOWN IN FIVE YEARS IF CUBA'S FALTERING ECONOMY IMPROVES THE 66YEAROLD PRESIDENT ASKED LATE WEDNESDAY IF HE EXPECTED TO BE CUBA'S LEADER IN 1998 REPLIED I HOPE IT WILL NOT BE NECESSARY CUBA HELD ONEPARTY GENERAL ELECTIONS THIS WEEK FOR PARLIAMENT 9302260013 930226 BUSINESS BRIEF NATIONWIDE MUTUAL INSURANCE CO MANAGEMENT OF A FUND ENDS UNDER SETTLEMENT OF A SUIT NATIONWIDE LIFE INSURANCE CO A UNIT OF NATIONWIDE MUTUAL INSURANCE CO AGREED TO GIVE UP A CONTRACT TO MANAGE A MASSACHUSSETTS PUBLIC EMPLOYEES' RETIREMENT FUND IN SETTLEMENT OF A STATE LAWSUIT THAT ACCUSED THE COMPANY OF OVERCHARGES NATIONWIDE WILL END ITS CURRENT CONTRACT ON JULY 31 AND TRANSFER TO THE STATE THE 676 MILLION UNDER MANAGEMENT IN THE FIXEDANNUITY FUND BY THAT DATE THE STATE SUSPENDED ALL NEW PAYMENTS INTO THE FUND LAST JUNE NATIONWIDE OF COLUMBUS OHIO HELD THE CONTRACT COVERING 131000 PUBLIC EMPLOYEES SINCE 1977 THE COMPANY WHICH SAID IT WAS PLEASED WITH THE SETTLEMENT WILL BE ALLOWED TO BID FOR A NEW CONTRACT TO MANAGE THE FUNDS THE SUIT FILED BY THE STATE IN SEPTEMBER ALLEGED NATIONWIDE VIOLATED ITS CONTRACT AND CONSUMERPROTECTION LAWS BY FAILING TO OFFER MASSACHUSETTS PUBLIC EMPLOYEES A PLAN THAT WAS AS FAVORABLE AS THAT OFFERED IN OTHER STATES IT ALSO ALLEGED PARTICIPANTS WERE UNDULY PENALIZED FOR TRANSFERRING OUT OF THE PLAN AND OVERCHARGED FOR ADMINISTRATIVE AND OTHER FEES 9302260012 930226 BUSINESS BRIEF ULTRALIFE BATTERIES INC INTERMAGNETICS IS REQUIRED TO RAISE STAKE IN COMPANY ULTRALIFE BATTERIES INC NEWARK NY SAID IT TOLD INTERMAGNETICS GENERAL CORP THAT IT WILL EXERCISE ITS OPTION TO REQUIRE INTERMAGNETICS TO BOOST ITS ULTRALIFE STAKE TO 1060753 COMMON SHARES OR ABOUT 198 INTERMAGNETICS A MAKER OF SUPERCONDUCTING METALS BASED IN GUILDERLAND NY CURRENTLY HOLDS 757958 ULTRALIFE SHARES THE LITHIUM BATTERY PRODUCER SAID ACCORDING TO A JANUARY 1992 AGREEMENT INTERMAGNETICS WILL ACQUIRE THE ADDITIONAL SHARES FOR 975 A SHARE INTERMAGNETICS WILL PAY FOR THE SHARES BY ISSUING ITS OWN COMMON STOCK VALUED AT 859 A SHARE AS A RESULT OF THE TRANSACTION ULTRALIFE WOULD OWN 343505 COMMON SHARES OR 45 OF INTERMAGNETICS 9302260011 930226 T2 MEDICAL TO ACQUIRE 14 FIRMS ATLANTA T2 MEDICAL INC A PROVIDER OF OUTPATIENTTREATMENT SERVICES SAID IT HAS AGREEMENTS IN PRINCIPLE TO ACQUIRE 14 PHYSICIANOWNED COMPANIES IN EXCHANGE FOR 385 MILLION OF STOCK THE TRANSACTIONS ARE EXPECTED TO CLOSE BY MARCH 31 THE COMPANIES TO BE ACQUIRED ARE IN GEORGIA FLORIDA ILLINOIS KENTUCKY MARYLAND NEW JERSEY NEW YORK SOUTH CAROLINA AND TENNESSEE 9302260010 930226 WHO'S NEWS MARTIN MARIETTA CORP MARTIN MARIETTA CORP BETHESDA MD MARCUS C BENNETT 57YEAROLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS ELECTED A DIRECTOR OF THIS AEROSPACE CONCERN HE SUCCEEDS R JAMES WOOLSEY WHO RESIGNED TO BECOME DIRECTOR OF THE US CENTRAL INTELLIGENCE AGENCY 9302260009 930226 MOODY'S LIFTS RATING ON AMGEN INC DEBT TOTALING 200 MILLION MOODY'S INVESTORS INC RAISED ITS RATING ON 200 MILLION OF AMGEN INC SENIOR DEBT THE MOVE CAME DESPITE SHARPLY NEGATIVE STOCK MARKET REACTION TO THE COMPANY'S STATEMENT LATE TUESDAY THAT FIRSTQUARTER NET INCOME WOULD BE 10 TO 15 BELOW ANALYSTS' FORECASTS SHARES OF THE THOUSAND OAKS CALIF BIOTECHNOLOGY CONCERN TUMBLED 20 OR 925 TO 37 ON HUGE VOLUME IN NATIONAL OVERTHECOUNTER TRADING MORE THAN 22 MILLION SHARES OR ABOUT 16 OF AMGEN'S 1363 MILLION SHARES CHANGED HANDS MOODY'S RAISED ITS RATING TO A2 FROM A3 ON AMGEN'S MEDIUMTERM NOTES CITING THE COMPANY'S EXPANDING EARNINGS AND CASHFLOW BASE IMPROVING PRODUCT OPPORTUNITIES AND ROBUST DEBTPROTECTION MEASUREMENTS AMGEN'S FORECAST AND THE ENSUING STOCK ACTIVITY DIDN'T CHANGE MOODY'S VIEW THAT AMGEN HAS VERY AMPLE DEBT PROTECTION SAID JAMES S LEE A PHARMACEUTICAL ANALYST WHO FOLLOWS AMGEN IT WAS MERE COINCIDENCE THAT THE RATING UPGRADE FOLLOWED AMGEN'S ANNOUNCEMENT MR LEE SAID EQUITY ANALYSTS ARE LOOKING AT QUARTERLY EARNINGS ESTIMATES THAT ARE VERY SENSITIVE TO CHANGES IN SALES BUT WE'RE LOOKING AT THIS FROM A CREDIT STANDPOINT AMGEN HAS LOW LEVERAGE AND SUBSTANTIAL LIQUIDITY MR LEE SAID MOODY'S ANTICIPATES THAT AMGEN'S TWO MAIN PRODUCTS EPOGEN AND NEUPOGEN WILL CONTINUE THEIR RISING PATTERN OF SALES ALTHOUGH NEUPOGEN'S 1992 SALES GROWTH RATE ISN'T SUSTAINABLE NEW USES FOR THE CANCERTREATMENT DRUG AND DEEPER INTERNATIONAL PENETRATION SHOULD MAINTAIN A HEALTHY SALES UPTREND MOODY'S SAID AMGEN IS BETTER POSITIONED THAN THE TYPICAL PHARMACEUTICAL COMPANY TO COPE WITH WHAT THE RATING SERVICE CALLED A TOUGHER OPERATING ENVIRONMENT AHEAD FOR HEALTHCARE COMPANIES SEPARATELY THE SAN DIEGO LAW FIRM OF MILBERG WEISS BERSHAD SPECTHRIE & LERACH FILED SIX SHAREHOLDER LAWSUITS ALL IDENTICAL AGAINST AMGEN ITS CHIEF EXECUTIVE OFFICER GORDON BINDER AND CHIEF FINANCIAL OFFICER LOWELL SEARS THE SUITS ACCUSED THEM OF MISLEADING INVESTORS ABOUT THE COMPANY'S EARNINGS PROSPECTS THE COMPLAINTS FILED IN FEDERAL COURT IN LOS ANGELES SEEK CLASSACTION STATUS ON BEHALF OF BUYERS OF AMGEN COMMON STOCK BETWEEN JAN 12 AND FEB 24 1993 AMGEN EXECUTIVES COULDN'T BE REACHED FOR COMMENT 9302260008 930226 BUSINESS BRIEF SAVIN CORP SUIT AGAINST MAJORITY HOLDER SEEKS TO RECOVER 25 MILLION SAVIN CORP STAMFORD CONN FILED A LAWSUIT TO RECOVER 25 MILLION FROM ITS DUTCH MAJORITY SHAREHOLDER HCS TECHNOLOGY NV AND THREE DUTCH BANKS THE SUIT FILED IN US BANKRUPTCY COURT IN NEW YORK CHARGES FRAUD CONSPIRACY AND BREACH OF CONTRACTUAL AND FIDUCIARY OBLIGATIONS THE DISTRIBUTOR OF OFFICE COPIERS WHICH HAS OPERATED UNDER CHAPTER 11 PROTECTION FROM CREDITORS SINCE AUGUST 1992 SAID THE SUIT SEEKS TO REMOVE AN OBSTACLE TO ITS FINANCIAL RESTRUCTURING DEFENDANTS INCLUDE HCS TECHNOLOGY OWNER OF 58 OF SAVIN VOTING STOCK ING BANK NV AND ITS AFFILIATES ABN AMRO BANK NV AND CREDIT LYONNAIS BANK OF THE NETHERLANDS THE SUIT CHARGES THAT BEGINNING IN MAY 1991 THE BANKS TOOK CONTROL OF HCS AND ITS HOLDINGS IN SAVIN THE SUIT ALLEGES THE BANKS PARTICIPATED IN TRANSACTIONS THAT UNLAWFULLY TRANSFERRED AT LEAST 25 MILLION FROM SAVIN TO BUOY HCS WHICH WAS FACING INSOLVENCY ITSELF AND TO REDUCE THE BANKS' FINANCIAL EXPOSURE IN HCS WHICH THEN EXCEEDED 100 MILLION THE DEFENDANTS COULDN'T BE REACHED FOR COMMENT 9302260007 930226 STRONG MEDICINE EMPLOYERS' ATTACK ON HEALTH COSTS SPURS CHANGE IN MINNESOTA HOSPITALS HMOS DOCTORS LINK UP AND TRY TO PROVE THEY ARE COSTEFFECTIVE RX MANAGED COMPETITION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS MANAGED COMPETITION IS RADICALLY TRANSFORMING HEALTH CARE IN MINNESOTA AND THE TUMULTUOUS CHANGES IN THIS STATE MAY FORESHADOW WHAT LIES AHEAD FOR THE NATION IF THE CLINTON ADMINISTRATION FULFILLS ITS HOPES OF OVERHAULING MEDICAL SERVICES NATIONWIDE IN THE FACE OF AGGRESSIVE NEW DEMANDS FROM A COALITION OF MAJOR EMPLOYERS THE HEALTHCARE COMMUNITY HERE IN A BLITZ OF MERGERS AND ALLIANCES IS HUSTLING TO RECAST ITS JUMBLE OF INDEPENDENT DOCTORS AND HOSPITALS INTO STREAMLINED NETWORKS THAT COMPETE MUCH AS FORD BATTLES TOYOTA ON PRICE SERVICE AND QUALITY TWO LARGE HEALTHMAINTENANCE ORGANIZATIONS MERGED EARLY LAST YEAR AND THEN JOINED FORCES WITH THE RENOWNED MAYO CLINIC TO SELL HIGHQUALITY LOWCOST CARE TO AREA EMPLOYERS AND THEIR WORKERS SOON AFTERWARD TWO BIG HOSPITALS IN MINNEAPOLIS AND ST PAUL COUNTERED WITH A MERGER OF THEIR OWN AND TWO CHILDREN'S HOSPITALS BEGAN EXPLORING AN ALLIANCE MEANTIME HOSPITALS ARE GOBBLING UP PRIMARYCARE CLINICS AND BUILDING NEW PARTNERSHIPS WITH DOCTORS SMALL FAMILY AND SPECIALTY PRACTICES ARE SCRAMBLING TO PRODUCE DATA SHOWING THEY ARE COSTEFFECTIVE AND BIG HEALTH PLANS SUCH AS MINNESOTA'S BLUE CROSS AND BLUE SHIELD ARE SIFTING BURGEONING COMPUTER DATABASES TO TRACK THE PERFORMANCE OF PRACTITIONERS FROM PEDIATRICIANS TO NEUROSURGEONS IN SHORT PRACTICALLY EVERY HOSPITAL AND THOUSANDS OF DOCTORS IN THE TWIN CITIES ARE PARTICIPATING IN VENTURES TO VIE FOR PATIENTS ON THE BASIS OF NOT ONLY COST BUT QUALITY PROVIDERS ARE REALIZING THAT IN ORDER TO COMPETE THEY MUST BE ACCOUNTABLE SAYS ALLAN CHERNOV VICE PRESIDENT FOR MEDICAL AFFAIRS AT MEDICA ONE OF THE BIG HMOS HERE THAT MEANS JOINING INITIATIVES THAT MEASURE HOW THEY PERFORM AND STACK UP THE DRIVE TO OVERHAUL HEALTH CARE AT BOTH THE NATIONAL AND LOCAL LEVELS IS PROVOKED BY COSTS THAT ARE BUSTING FEDERAL AND STATE BUDGETS HOBBLING COMPANIES AND STILL LEAVING 35 MILLION AMERICANS UNINSURED BUT INTRODUCING COMPETITION THAT MIGHT TRULY HOLD DOWN COSTS HAS BEEN EXASPERATINGLY DIFFICULT IN THE HEALTHCARE FIELD WHAT HAS BROKEN THE LOGJAM AND SPURRED COMPETITION HERE IN THE TWIN CITIES IS THE BUSINESS HEALTH CARE ACTION GROUP A DETERMINED COALITION OF 14 MAJOR EMPLOYERS INCLUDING DAYTON HUDSON CORP HONEYWELL INC AND CERIDIAN CORP COMBINED THEY ANNUALLY PURCHASE SOME 200 MILLION OF HEALTH CARE ABOUT 6 OF THE LOCAL MARKET THE COALITION'S STRATEGY DIFFERS IN DETAILS AND LACKS THE REGULATORY APPARATUS ANTICIPATED UNDER FEDERAL PROPOSALS BUT ITS GOAL IS THE SAME TO USE PURCHASING POWER NOT TO WIN DISCOUNTS BUT TO CHANGE THE WAY MEDICINE IS PRACTICED UNDER MANAGED COMPETITION LARGE PURCHASING GROUPS SIMILAR TO BUSINESS COALITIONS WOULD BUY CARE FROM COMPETING HEALTH PLANS THAT IN THEORY AT LEAST WOULD THRIVE ONLY BY DELIVERING A HIGHQUALITY LOWCOST PRODUCT TO GET SUCH A PRODUCT THE TWIN CITIES FIRMS PUT THEIR EMPLOYEE HEALTH CARE UP FOR BID AND SELECTED A SINGLE ORGANIZATION THAT AMONG OTHER THINGS IS COMMITTED TO DOCUMENTING AND IMPROVING ITS DOCTORS' PERFORMANCE WHILE ENCOURAGING PREVENTIVE MEDICINE WE CAN NEGOTIATE ALL THE CONTRACTS AND DISCOUNTS WE WANT SAYS FRED HAMACHER VICE PRESIDENT FOR COMPENSATION AND BENEFITS AT DAYTON HUDSON BUT WE AREN'T GOING TO MAKE ANY HEADWAY CONTAINING COSTS UNTIL WE CHANGE THE SYSTEM IN WHICH CARE IS DELIVERED BUT CHANGE IS PAINFUL SOME DOCTORS COMPLAIN WRYLY THAT MINNESOTA IS ON THE BLEEDING EDGE OF MEDICAL REFORM CURTIS KELLER WORKS IN A 35DOCTOR FAMILY PRACTICE THAT HAS CONTRACTS WITH THREE HEALTH PLANS IN MINNEAPOLIS AND ALTHOUGH HE SUPPORTS QUALITY INITIATIVES HE IS ALSO TROUBLED BY CHALLENGES TO LONGSTANDING CONVENTIONS MY TRAINING 25 YEARS AGO WAS TO BE COMPREHENSIVE AND THOROUGH AND NOT MISS ANYTHING DR KELLER SAYS NOW PEOPLE ARE SAYING 'O WHAT'S COSTEFFECTIVE' THE NEW APPROACH IS GOING TO MISS SOME THINGS IN ANY EVENT MANY HIGHLY TRAINED SPECIALISTS ARE LIKELY TO MISS SOME INCOME A MAJOR AIM OF THE COALITION IS TO CUT BACK ON THE CARE DELIVERED BY EXPENSIVE CARDIOLOGISTS ORTHOPEDISTS AND OTHER SPECIALISTS AND RELY HEAVILY ON PRIMARYCARE DOCTORS EMPLOYEES FACE CHANGE TOO EVEN THOUGH MORE THAN TWOTHIRDS OF TWIN CITIES WORKERS ARE ALREADY ENROLLED IN PREPAID HMOS AND ARE ACCUSTOMED TO COSTSAVING STRATEGIES SUCH AS LIMITS ON THE CHOICE OF DOCTORS MANY WILL HAVE TO CHANGE THEIR DOCTORS THEY ALSO WILL BE EXPECTED TO ATTEND SEMINARS ON HOW TO BE BETTER PATIENTS DOCTORS COMPLAIN THAT SOME PATIENTS UNDERMINE COSTEFFECTIVE MEDICAL PRACTICE BY DEMANDING FOR INSTANCE COSTLY AND UNNECESSARY IMAGING TESTS FOR ROUTINE COMPLAINTS WHILE ASSUMING INSURANCE PICKS UP MOST OF THE TAB IT'S A TWOWAY STREET MR HAMACHER SAYS WE HAVE TO MAKE SURE OUR PEOPLE HAVE REASONABLE EXPECTATIONS FROM THE HEALTHCARE SYSTEM TO PERSUADE EMPLOYEES TO SIGN UP FOR THE NEW HEALTH PLAN COMPANIES ARE USING VIDEOS ATTESTING TO THE QUALITY OF CARE IN THE NEW ORGANIZATION AS WELL AS THE PROMISE OF MUCHLOWER OUTOFPOCKET COSTS COALITION OFFICIALS SAY 35000 EMPLOYEES AND DEPENDENTS HAVE ALREADY JOINED THE PLAN WHICH WAS LAUNCHED IN SOME OF THE COMPANIES IN THE PAST TWO MONTHS THE TOTAL SIGNED UP BY NEXT JAN 1 IS EXPECTED TO REACH 90000 SOME 70 OF THE 125000 WHO ARE ELIGIBLE THE TWIN CITIES REVOLUTION EMERGED TWO YEARS AGO IN THE WAKE OF A LEGISLATIVE BATTLE STATE LAWMAKERS HAD PROPOSED A NEW PAYROLL TAX TO FINANCE HEALTH COVERAGE FOR MINNESOTA'S 400000 UNINSURED RESIDENTS MANY BUSINESS LEADERS WERE INCENSED IT WAS A PLAN TO FINANCE ACCESS TO A BROKEN SYSTEM SAYS JOHN M BURNS HONEYWELL'S VICE PRESIDENT FOR HEALTH MANAGEMENT UNLESS THE UNINSURED GOT CARE IN A SYSTEM THAT MINIMIZED UNNECESSARY PROCEDURES THEIR HEALTH BILLS WOULD DRAIN THE STATE TREASURY THE EXECUTIVES COMPLAINED DR BURNS HELPED LEAD A BUSINESSBACKED EFFORT TO DRAFT AN ALTERNATIVE BILL BUT LEGISLATORS DERIDED IT AS POOR MEDICINE FOR POOR PEOPLE SOMETHING EMPLOYERS WOULDN'T FOIST ON THEIR WORKERS DURING COFFEE BREAKS IN LEGISLATIVE STRATEGY SESSIONS A HANDFUL OF CORPORATEBENEFITS OFFICIALS SWAPPED TALES OF FRUSTRATION OVER THEIR SOARING HEALTH COSTS ALTHOUGH COSTS HERE WERE NEARLY 20 BELOW THE NATIONAL AVERAGE THEY WERE RISING AT 12 TO 15 A YEAR FOUR TIMES THE INFLATION RATE AND THESE COMPANIES HAD USED EVERY COSTCONTAINMENT TRICK IN THE BOOK SAYS MR HAMACHER INCLUDING NEGOTIATED DISCOUNTS ON BILLS AND STRICT REVIEWS OF PHYSICIANS' DECISIONS THEY CONCLUDED THAT MORE TINKERING WITH THE SYSTEM WOULD BE FUTILE AND THAT THE APPROACH THEY WERE URGING ON LEGISLATORS WAS EXACTLY WHAT THEY WANTED FOR THEIR EMPLOYEES BENEFITS OFFICIALS FORMED THE COALITION IN THE FALL OF 1991 AND IMMEDIATELY CHARTED THEIR NEW COURSE INSTEAD OF SEEKING DISCOUNTS THEY WOULD DEMAND THAT PROVIDERS DEMONSTRATE A COMMITMENT TO QUALITY COST SAVINGS THEY ASSUMED WOULD FOLLOW THEY RESOLVED NOT TO IMPOSE RULES ON DOCTORS BUT TO PURCHASE CARE ONLY FROM AN ORGANIZATION THAT DEVELOPED AND FOLLOWED ITS OWN PRACTICE STANDARDS AND WORKED TO IMPROVE OVERALL PERFORMANCE THERE ARE A LOT OF INSURERS OUT THERE PUTTING GUIDELINES IN THREERING BINDERS AND MAILING THEM OUT TO PROVIDERS WITH A CONTRACT SAYS STEVE WETZELL EXECUTIVE DIRECTOR OF THE BUSINESS HEALTH CARE ACTION GROUP WE DON'T THINK THAT'S GOING TO CHANGE THE PRACTICE OF MEDICINE DOCTORS AREN'T GOING TO FOLLOW A THREERING BINDER THAT SOMEONE ELSE PRODUCED AND IN AN UNUSUAL STEP THE 14 EMPLOYERS AGREED TO ADOPT ONE STANDARD BENEFITS PLAN TO REDUCE PAPERWORK HEADACHES FOR DOCTORS WHEN PURCHASERS AND PROVIDERS WORK TOGETHER TO DEFINE THE PRODUCT AND DEVELOP QUALITY STANDARDS THAT'S WHEN YOU CAN REALLY START REFORMING THE SYSTEM MR WETZELL SAYS EARLY LAST YEAR THE COALITION INVITED MORE THAN 150 DOCTORS AND HOSPITAL AND HEALTHPLAN ADMINISTRATORS TO MEETINGS TO EXPLAIN THE NEW IDEAS IN RESPONSE ABOUT 20 HEALTHCARE ORGANIZATIONS BID FOR THE CONTRACT BUT ONLY TWO CAME CLOSE TO MEETING THE COALITION'S REQUIREMENTS ONE WAS MINNESOTA BLUE CROSS AND BLUE SHIELD WHICH ARGUED THAT IT IS SUCCESSFULLY USING SIX YEARS OF ACCUMULATED DATA ON PHYSICIAN AND HOSPITAL PERFORMANCE TO ENCOURAGE COSTEFFECTIVE CARE BUT COALITION MEMBERS VIEWED THE BIG INSURER AS A THIRD PARTY SETTING THE RULES AND THEY REJECTED THE BID INSTEAD IT CHOSE GROUPCARE INC A CONSORTIUM FORMED FROM THE MARRIAGE OF TWO LOCAL HMOS GROUP HEALTH INC AND MEDCENTERS INC WHICH THEN TEAMED UP WITH THE MAYO CLINIC IN NEARBY ROCHESTER MINN PARK NICOLLET MEDICAL CENTER A 360DOCTOR GROUP IN MINNEAPOLIS IS THE MAIN PHYSICIAN GROUP IN THE CONSORTIUM THE EMPLOYER COALITION LIKED GROUPCARE BECAUSE MOST OF ITS DOCTORS ARE SALARIED AND THUS NOT PAID ACCORDING TO THE NUMBER OF PROCEDURES THEY DO IN ADDITION GROUP HEALTH PARK NICOLLET AND MAYO HAD ALREADY DEVELOPED PRACTICE GUIDELINES FOR MORE THAN 50 MEDICAL CONDITIONS ON THIS SCORE MR WETZELL SAYS THERE WASN'T ANYBODY ELSE WHO COULD TOUCH THEM PARK NICOLLET'S NEW APPROACH TO DETECTING BREAST CANCER IS A CASE IN POINT A WOMAN TYPICALLY WAITS UP TO TWO ANXIOUS WEEKS AFTER A SUSPICIOUS MAMMOGRAM TO LEARN WHETHER SHE HAS A MALIGNANCY BUT AT PARK NICOLLET A TEAM OF SURGEONS RADIOLOGISTS AND PRIMARYCARE DOCTORS DEVISED A WAY TO REDUCE THE TIME TO AS LITTLE AS A FEW HOURS WITH THE HELP OF A NEW COMPUTERGUIDED MACHINE THAT ENABLES A RADIOLOGIST INSTEAD OF A SURGEON TO PERFORM THE BIOPSY THAT ELIMINATES THE TIME IT TAKES TO SCHEDULE A SURGERY APPOINTMENT AS WELL AS THE SURGEON'S FEE AFTER CONDUCTING A 100PATIENT STUDY THAT SHOWED THE MACHINE WAS AS RELIABLE AS A TRADITIONAL SURGICAL BIOPSY THE TEAM INCORPORATED THE DEVICE AS PART OF THE CLINIC'S STANDARD OF CARE PARK NICOLLET SAYS THE NEW APPROACH TRIMS COSTS BY ABOUT ONETHIRD AND IMPROVES QUALITY AS WELL WOMEN HAVE A LOT FEWER SLEEPLESS NIGHTS SAYS JAMES L REINERTSEN FORMER PRESIDENT OF PARK NICOLLET WITH THE DOCTORS ON SALARY ELIMINATING THE SURGICAL BIOPSY DOESN'T UPSET THE SURGEONS IN MOST OTHER SETTINGS SURGEONS ARE PAID A FEE FOR EACH SERVICE AND WOULD PROBABLY RESIST A NEW APPROACH THAT REDUCED THEIR INCOME DR REINERTSEN SAYS TO DEVELOP SIMILAR GUIDELINES FOR DOZENS OF MEDICAL CONDITIONS THE GROUPCARE CONSORTIUM CREATED A 7 MILLION RESEARCH INSTITUTE COMMITTEES REPRESENTING DOCTORS AND EMPLOYERS WILL SOON CONSIDER FOR INSTANCE ANOTHER PARK NICOLLET POLICY THAT ELIMINATES NEARLY ALL COSTLY XRAYS AND PHYSICAL THERAPY FOR BACKPAIN PATIENTS IN THE FIRST SIX WEEKS OF TREATMENT IN REVIEWING THE MEDICAL LITERATURE DOCTORS FOUND THAT 90 OF BACKPAIN CASES RESOLVE THEMSELVES WITHIN SIX WEEKS WITH EXERCISE HEAT AND ICE TREATMENTS AND ASPIRIN ALSO ON THE INSTITUTE'S AGENDA IS A NEW WAY OF IDENTIFYING BLOCKED CORONARY ARTERIES THE GROUP'S MAYO CLINIC PARTNER IS CONDUCTING STUDIES TO DETERMINE WHETHER A 500 HIGHSPEED XRAY SCANNER DETECTS BLOCKAGES AS WELL AS A 5000 PROCEDURE CALLED THE CORONARY ANGIOGRAM THE INSTITUTE IS DEVELOPING NEW QUALITY MEASURES THAT TRACK NOT ONLY DOCTORS' DEATH RATES FOR HEARTBYPASS SURGERY BUT ALSO WHETHER GROUPCARE MEETS PREVENTIVEMEDICINE TARGETS SUCH AS CHILDHOOD IMMUNIZATIONS AND MAMMOGRAPHY SCREENINGS DR REINERTSEN CHAIRMAN OF THE NEW INSTITUTE SAYS THE BEST MEASURE OF A HEALTH ORGANIZATION'S QUALITY IS NOT FOR INSTANCE THE NUMBER OF ITS BYPASS PATIENTS WHO SURVIVE BUT ITS SUCCESS AT PREVENTING THE NEED FOR SURGERY AT ALL THE COALITION IS CREATING NEW STANDARDS AND A NEW REWARD SYSTEM SAYS GEORGE HALVORSON GROUPCARE'S CHIEF EXECUTIVE IT'S CHANGING THE WAY HEALTH CARE IS DELIVERED IN THIS COMMUNITY THE INABILITY OF MOST HEALTHCARE PROVIDERS WORKING OUTSIDE AN ORGANIZED STRUCTURE TO MEET THOSE STANDARDS IS THE MAJOR FORCE BEHIND THE FLURRY OF MERGERS AND QUALITY PROGRAMS OUR CHALLENGE IS TO GIVE UP SOME INDIVIDUAL AUTONOMY TO PROVIDE THE KIND OF DISCIPLINED PRODUCT THAT GROUPCARE PROVIDES SAYS GORDON SPRENGER CHIEF EXECUTIVE OF HEALTHSPAN A NEW ORGANIZATION BORN OF THE MERGER OF TWO BIG TWIN CITIES HOSPITALS AT ABBOTT NORTHWESTERN HOSPITAL HEALTHSPAN'S FLAGSHIP INSTITUTION DOCTORS AND ADMINISTRATORS ARE SETTING UP A PHYSICIANHOSPITAL ORGANIZATION THAT WILL OFFER HEALTH SERVICES FOR A BUNDLED FEE INSTEAD OF THE CUSTOMARY ITEMIZED HOSPITAL BILLS AND SEPARATE DOCTOR FEES AND WILL EAT ANY COSTS EXCEEDING THAT PRICE TO SELECT PARTICIPANTS A COMMITTEE EVALUATED THE ECONOMIC PERFORMANCE OF ABOUT 165 DOCTORS WHO ADMIT PATIENTS TO THE HOSPITAL AND IT EXCLUDED A DOZEN WHO REGULARLY RAN UP COSTS SIGNIFICANTLY ABOVE HOSPITAL AND NATIONAL AVERAGES THEY AREN'T BAD DOCTORS JUST EXPENSIVE DOCTORS SAYS RICHARD STURGEON WHO HEADS THE NEW GROUP QUALITY OFFICIALS AT MEDICA THE HMO ALSO ARE HARD AT WORK THEY DETERMINED THAT IT COULD SAVE MORE THAN 500000 A YEAR BY PERFORMING ALL TONSILLECTOMIES IN OUTPATIENT CLINICS RATHER THAN HOSPITALS WITHOUT AFFECTING PATIENT OUTCOMES DOCTORS AGREED THAT OUTPATIENT TONSILLECTOMIES WOULD BECOME STANDARD PRACTICE EVEN ROBERT BURMASTER WHO WORKS IN A FIVEDOCTOR FAMILY PRACTICE IS BEING AFFECTED BY THE CHANGES HE NOW HEADS A RECENTLY FORMED 500DOCTOR ASSOCIATION THAT IS TRYING AMONG OTHER GOALS TO GET ALL ITS DOCTORS TO USE STANDARD COMPUTER SOFTWARE TO HELP GATHER DATA ON PATIENT SATISFACTION COSTS OF PROCEDURES AND OTHER PERFORMANCE MEASURES MY OWN PRIVATE PRACTICE ALONE CAN'T PROVIDE THIS INFORMATION IN TERMS THAT PAYERS WANT DR BURMASTER SAYS WHETHER THE CHANGES IN THE TWIN CITIES WILL IMPROVE QUALITY AND CONTAIN COSTS ISN'T KNOWN THE COALITION'S THREEYEAR CONTRACT WITH GROUPCARE FOR INSTANCE AIMS FOR NOW TO REDUCE COST GROWTH TO THE OVERALL INFLATION RATE A GOAL THAT EVEN SOME SUPPORTERS SAY IS TOO MODEST TO TRULY CHANGE MEDICAL PRACTICE SOME CRITICS WORRY THAT THE MERGERS WILL INHIBIT RATHER THAN ENHANCE COMPETITION BUT TWO OTHER EMPLOYER COALITIONS HERE ARE LAUNCHING SIMILAR PURCHASING EFFORTS AND A BROAD STATE LAW PASSED LAST YEAR AIMS TO PROVIDE COVERAGE FOR THE UNINSURED BY REQUIRING THAT THEY GET CARE FROM ORGANIZED NETWORKS OF DOCTORS AND HOSPITALS PROPONENTS OF MANAGED COMPETITION BELIEVE THAT AS SIMILAR DEMANDS ARE MADE IN COMMUNITIES AROUND THE US THE REALIGNMENT OF MEDICAL PRACTICE UNDER WAY IN MINNESOTA WILL SPREAD IF MANAGED COMPETITION IS THE MODEL THE FEDERAL GOVERNMENT ADOPTS SAYS RICHARD TOMPKINS CHIEF OF REGIONAL PLANNING AT THE MAYO CLINIC PRESSURE FOR DEVELOPING TOTALCARE SYSTEMS TO COMPETE WITH EACH OTHER IS GOING TO BUILD AND BUILD 9302260006 930226 CORRECTIONS & AMPLIFICATIONS BROOKE GROUP LTD HAS NOT YET DETERMINED IN WHICH QUARTER IT PLANS TO REALIZE A 75 MILLION PRETAX GAIN FROM A SETTLEMENT WITH LIBERTY SERVICES CORP BROOKE ALSO SAID ITS UNIT BGLS INC INITIATED THE LAWSUIT THAT LED TO THE SETTLEMENT AN ARTICLE YESTERDAY INCORRECTLY INDICATED THE COMPANY WOULD RECORD THE GAIN IN THE FIRST QUARTER AND THAT BGLS HAD COUNTERSUED LIBERTY SERVICES ALSO BROOKE GROUP HAD A NET LOSS OF 166 MILLION OR 72 CENTS A SHARE ON REVENUE OF 2521 MILLION FOR THE 1992 FIRST QUARTER THE ARTICLE INCORRECTLY INDICATED THE FIGURES WERE FOR THE FULL YEAR MARTIN EMMETT IS CHIEF EXECUTIVE OFFICER OF TAMBRANDS INC IN A MARKETPLACE ARTICLE WEDNESDAY THE COMPANY WAS INCORRECTLY IDENTIFIED AS TANDY CORP LITTON INDUSTRIES INC DIDN'T DECLARE A 2FOR1 SPLIT OF ITS COMMON SHARES AS REPORTED IN YESTERDAY'S DIVIDENDS REPORTED TABLE LITTON DISTRIBUTED A SPLIT OF ITS COMMON SHARES IN MAY OF LAST YEAR HOWTEK INC SAID DAVID R BOTHWELL PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED IN A WHO'S NEWS ITEM YESTERDAY MR BOTHWELL WAS INCORRECTLY IDENTIFIED AS HOWTEK'S CHIEF EXECUTIVE OFFICER ADIA SERVICES INC NAMED PRISCILLA FLORENCE A VICE PRESIDENT OF WORLD CUP USA 94 TO ITS BOARD IN A WHO'S NEWS ITEM YESTERDAY THE COMPANY WAS INCORRECTLY IDENTIFIED AS ACADIA SERVICES INC 9302260005 930226 LDDS JOINS METROMEDIA RESURGENS DEAL BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL EAST RUTHERFORD NJ METROMEDIA CO'S LONGDISTANCE UNIT AND RESURGENS COMMUNICATIONS CORP WHICH HAD SAID LAST OCTOBER THAT THEY WOULD MERGE NOW PLAN A HEFTIER THREEWAY MERGER WITH LDDS COMMUNICATIONS INC THE THREE LONGDISTANCE TELEPHONE SERVICE PROVIDERS JOINTLY ANNOUNCED LATE YESTERDAY THAT THEY SIGNED A LETTER OF INTENT TO MERGE CREATING THE FOURTHLARGEST LONGDISTANCE COMPANY WITH ANNUAL REVENUE EXPECTED TO BE MORE THAN 15 BILLION IT WOULD RANK A DISTANT FOURTH THOUGH BEHIND AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP AND SPRINT CORP IN THE 55 BILLION LONGDISTANCE MARKET TERMS WEREN'T DISCLOSED ALTHOUGH PRESUMABLY THE MERGER WOULD BE DONE THROUGH STOCK SWAPS THE COMPANIES SAID THE TRANSACTION WILL BE EFFECTED THROUGH THE ISSUANCE OF COMMON STOCK AND VOTING PERPETUAL CONVERTIBLE PREFERRED STOCK ACCORDING TO A JOINT STATEMENT OF THE THREE COMPANIES CURRENT SHAREHOLDERS OF LDDS JACKSON MISS WOULD HAVE 685 OF THE NEW COMPANY'S VOTING SECURITIES THE LARGEST SINGLE HOLDER WOULD BE JOHN W KLUGE METROMEDIA'S OWNER AND CHAIRMAN WITH 20 A METROMEDIA SPOKESWOMAN SAID HE WOULD BE CHAIRMAN OF THE MERGED COMPANIES AND BERNARD J EBBERS PRESIDENT AND CHIEF EXECUTIVE OF LDDS WOULD BE PRESIDENT AND CEO OF THE NEW COMPANY SHE SAID SHE DIDN'T KNOW WHAT NAME THE NEW COMPANY WOULD TAKE LAST OCTOBER METROMEDIA COMMUNICATIONS CORP AND ATLANTABASED RESURGENS SAID THEY WOULD MERGE INTO A COMPANY THAT WOULD BE 60 OWNED BY METROMEDIA AND 40 BY RESURGENS THAT WOULD CREATE A COMPANY WITH REVENUE IN EXCESS OF 500 MILLION THE INCLUSION OF LDDS TRIPLES THE SIZE OF THE MERGER NO VALUE FOR THE TRANSACTION WAS INDICATED ALTHOUGH THE METROMEDIA SPOKESWOMAN SAID SOMEONE CLOSE TO THE MERGER DESCRIBED IT AS A 22 BILLION TRANSACTION ON A FULLY DILUTED BASIS METROMEDIA IS PRIVATELY HELD LDDS AND RESURGENS BOTH PUBLICLY TRADED HAVE CURRENT MARKET VALUES OF 500 MILLION AND 384 MILLION RESPECTIVELY BASED ON YESTERDAY'S CLOSING PRICES FOR THEIR SHARES RESURGENS' MARKET VALUE WHICH HAS MORE THAN DOUBLED SINCE THE OCTOBER ANNOUNCEMENT IS ON A FULLY DILUTED BASIS NO OFFICIALS OF THE THREE COMPANIES WERE IMMEDIATELY AVAILABLE TO PROVIDE FURTHER DETAILS OF THE TRANSACTION OR TO CONFIRM THE VALUE OF THE TRANSACTION THE METROMEDIA SPOKESWOMAN SAID THE MERGER WILL BE IN TWO STEPS METROMEDIA COMMUNICATIONS AND RESURGENS WILL COMPLETE THEIR PREVIOUSLY ANNOUNCED MERGER AND THE MERGED COMPANIES WILL THEN COMBINE WITH LDDS SHE SAID THE COMPANY WILL HAVE A NATIONAL LONGDISTANCE NETWORK CITING SIGNIFICANT INVESTMENTS METROMEDIA HAD PREVIOUSLY MADE IN EQUIPMENT LDDS AND RESURGENS HAVE BEEN GROWING QUICKLY IN LONGDISTANCE SERVICE THROUGH ACQUISITIONS IN DECEMBER LDDS ACQUIRED ADVANCED TELECOMMUNICATIONS CORP AN ATLANTA LONGDISTANCE COMPANY IN A 720 MILLION SHARE SWAP AND MADE SOME SMALLER ACQUISITIONS AND RESURGENS ACQUIRED COM SYSTEMS INC WESTLAKE VILLAGE CALIF THAT NEARLY DOUBLED RESURGENS'S ANNUAL REVENUE TO 185 MILLION METROMEDIA HAS BEEN A GROWING FACTOR IN THE LONGDISTANCE MARKET HAVING ACQUIRED ITS LARGEST OPERATIONS SEVERAL YEARS AGO FROM ITT CORP 9302260004 930226 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON'S SPENDING BILL COULD GET A BOOST FROM NEW ECONOMIC CONCERNS FEDERAL RESERVE BOARD CHAIRMAN GREENSPAN'S WARNING THAT ECONOMIC GROWTH IS SLOWING AS WELL AS THE RECENT DIP IN CONSUMER CONFIDENCE COULD OFFSET SOME OF THE EARLY CONGRESSIONAL MISGIVINGS ABOUT THE STIMULUS PACKAGE NEW CONSUMERCONFIDENCE NUMBERS DUE OUT TODAY WILL BE CLOSELY WATCHED WHILE SOME DEMOCRATS SEE POLITICAL GAINS IN MODESTLY PARING THE PACKAGE IT COULD ALSO DRAW MORE SUPPORT AS VOTERS REALIZE IT GOES FOR SUCH POPULAR PROGRAMS AS SUMMER YOUTH JOBS THE REPAIR OF VETERANS' HOSPITALS AND STUDENT LOANS BUT THE WHITE HOUSE RUNS INTO PROCEDURAL PROBLEMS IN SEEKING A QUICK VOTE ON CLINTON'S BUDGET THE PROPOSED 1994 SPENDING EXCEEDS CEILINGS SET IN THE 1990 LAW AND REPUBLICANS LIKELY WOULD INVOKE A PROVISION REQUIRING A HARDTOGET 60 VOTES IN THE SENATE TO OVERRIDE THE CEILINGS CLINTON'S DEFICIT ESTIMATES DON'T REFLECT HIS MEDICAID DEALS WITH GOVERNORS WHICH COULD COST THE US BETWEEN 1 BILLION AND 5 BILLION THIS YEAR CLINTON HEALTH AIDES MAY HAVE TO SCALE BACK THEIR PLANS SENIOR STAFF MEMBERS ON THE HEALTHCARE TASK FORCE FEAR THE PRESIDENT WON'T BE ABLE TO SEEK A TAX INCREASE LARGE ENOUGH TO PAY FOR COVERING THE 37 MILLION UNINSURED AMERICANS THEY ARE ALSO UPSET THAT THE 50 BILLION IN MEDICARE SAVINGS IS TARGETED FOR DEFICIT REDUCTION INSTEAD OF HEALTHCARE PROGRAMS MEANWHILE THE TASK FORCE STEPS UP ITS EFFORTS TO COURT MEMBERS OF CONGRESS AND KEY SPECIAL INTERESTS WHITE HOUSE AIDE MAGAZINER SPENT A DAY IN JACKSON HOLE WYO MEETING WITH THE GURUS OF MANAGED COMPETITION THIS WEEKEND HE AND THE FIRST LADY ARE SPEAKING AT A REPUBLICAN SENATORS' RETREAT IN MARYLAND HILLARY CLINTON'S CLOUT EXTENDS TO A WIDENING RANGE OF MATTERS ADVISERS OFTEN CHECK WITH THE FIRST LADY BEFORE APPROACHING THE PRESIDENT PERSONNEL CHIEF BRUCE LINDSEY A CLINTON CONFIDANT ROUTINELY RUNS APPOINTMENTS BY HER FIRST MRS CLINTON ALSO HELPS MANAGE THE PRESIDENT'S TIME REGULARLY REVIEWING AND SOMETIMES ALTERING HIS DAILY SCHEDULE SHE ALSO HELPS WRITE HIS SPEECHES AND SET HIS POLITICAL AGENDA DOMESTIC POLICY ADVISER CAROL RASCO IS SEEN MORE AS HER AIDE THAN THE PRESIDENT'S SHE TALKS TO LAWMAKERS ALMOST EXCLUSIVELY ABOUT MATTERS THAT CONCERN THE FIRST LADY SUCH AS HEALTH CARE AND CHILDREN'S ISSUES THE NUMBER OF PEOPLE WHO REPORT TO MRS CLINTON'S HEALTHCARE TASK FORCE HAS GROWN TO NEARLY 300 WHAT A RUSH RADIO TALKSHOW KING RUSH LIMBAUGH DECLINED TO SPEAK AT THE ANNUAL MEETING OF THE CONSERVATIVE POLITICAL ACTION CONFERENCE CITING A SCHEDULE CONFLICT BUT SOME CONSERVATIVES COMPLAIN THE REAL REASON WAS THE CONFERENCE DOESN'T PAY ITS SPEAKERS AMONG THOSE WHO DID SPEAK SAM DONALDSON FOR THE FOURTH STRAIGHT YEAR LAMEDUCK BREEDEN PUSHES AHEAD WITH COMPLICATED PROJECTS DESPITE HIS APRIL 15 DEPARTURE FROM THE SEC ONE WOULD SET RULES FOR A COMPUTERIZED TRADING OF JUNK BONDS ANOTHER WOULD CREATE A NEW FORM OF MUTUAL FUND HE SAYS HE ISN'T PUSHING STUFF THAT'S CONTROVERSIAL AND WILL REQUIRE A NEW CHAIRMAN TO UNDO BANKERS ATTACK CLINTON'S PROPOSAL TO RAISE 11 BILLION OVER FIVE YEARS BY REQUIRING THE FDIC TO CHARGE STATE BANKS FOR EXAMINATIONS COMPLAINING THE NEW FEE WILL AGGRAVATE THE CREDIT CRUNCH THE ADMINISTRATION WANTS THE FED TO CHARGE TOO BUT DIDN'T MENTION IT IN THE BUDGET FOR FEAR OF COMPROMISING THE FED'S INDEPENDENCE WEBSTER HUBBELL THE FORMER HILLARY CLINTON LAW PARTNER IN LINE FOR A TOP JUSTICE DEPARTMENT POSITION COULD END UP COUNSELOR TO THE ATTORNEY GENERAL ONE BENEFIT OF THE POST IT DOESN'T REQUIRE SENATE CONFIRMATION WHICH MIGHT DISCLOSE INFORMATION ABOUT THE ROSE LAW FIRM'S COMPENSATION SYSTEM AND CLIENTS THAT WOULD DRAW PRESS SCRUTINY BECAUSE OF MRS CLINTON CIA CHIEF WOOLSEY MOVES TO REDUCE AND REFOCUS INTELLIGENCE EFFORTS ADMINISTRATION OFFICIALS ENVISION CUTTING INTELLIGENCE SPENDING 25 BY 1997 TO 225 BILLION IN TODAY'S DOLLARS BUSH BY CONTRAST HAD MULLED A 20 CUT ADMINISTRATION AIDES HOPE THE BUDGET CUTS ARE ENOUGH TO SOOTHE PASSIONS ON CAPITOL HILL FOR EVEN DEEPER REDUCTIONS WHEN LAWMAKERS SEE THE PLAN PREDICTS ONE OFFICIAL THEY'LL BUY IT WITH SOME NOISE THE WOOLSEYORDERED REVIEW OF THE ISSUE OF ECONOMIC INTELLIGENCE AND WHETHER SUCH INFORMATION SHOULD BE SHARED WITH AMERICAN BUSINESSES IS LIKELY TO DRAW IN THE WHITE HOUSE AND OTHER AGENCIES AS WELL THE CIA DIRECTOR IS WELL VERSED IN PLANS TO REVAMP AND CONSOLIDATE THE COSTLY SATELLITE INTELLIGENCE SYSTEMS HAVING CONDUCTED A CONFIDENTIAL STUDY OF THE ISSUE FOR GATES TWO AREAS SURE TO BE HIT ONLY LIGHTLY IN BUDGET CUTS INTELLIGENCE ON NUCLEAR AND CHEMICALWEAPONS PROLIFERATION AND ON DRUG TRAFFICKING MINOR MEMOS A RELOCATION NEWSLETTER REPORTS THAT MOVERS PACKING UP HILLARY CLINTON'S LITTLE ROCK LAW OFFICE FOUND A COPY OF HOW TO IMPEACH THE PRESIDENT ON HER DESK SHHH SINCE ONLY THREE OF FIVE COMMODITIES FUTURES TRADING COMMISSION MEMBERS REMAIN ANY BUSINESS DISCUSSION BETWEEN TWO OF THEM TRIGGERS OPENMEETING LAWS AS A RESULT THEY HAVE TO USE STAFFERS TO DO THEIR TALKING CLOUDED CRYSTAL BALL GREENSPAN INFORMS LAWMAKERS THAT FUNDAMENTALLY THE FUTURE IS UNKNOWABLE 9302260003 930226 BUSINESS BRIEF CHAMBERS DEVELOPMENT CO MORAN ASSET MANAGEMENT HOLDS 1337 OF COMMON MORAN ASSET MANAGEMENT INC A GREENWICH CONN INVESTMENT ADVISER CONTROLLED BY FREDERICK A MORAN REPORTED HOLDING A 1337 STAKE IN CHAMBERS DEVELOPMENT CO CLASS A COMMON SHARES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MORAN ASSET SAID ITS STAKE ALONG WITH SHARES HELD BY MR MORAN BRING THE TOTAL AMOUNT OF CHAMBERS CLASS A SHARES CONTROLLED BY MR MORAN AND HIS COMPANY TO A 1397 STAKE OR 7110000 SHARES ACCORDING TO THE FILING MORAN ASSET AND MR MORAN BOUGHT 786549 COMMON SHARES FROM DEC 17 TO FEB 17 AT 450 TO 671 A SHARE ON DEC 14 MORAN REPORTED IN AN INITIAL FILING WITH THE SEC THAT HE HELD A 1536 STAKE OR ABOUT 7790000 CLASS A SHARES MR MORAN DID NOT RETURN PHONE CALLS CHAMBERS A PITTSBURGH WASTEMANAGEMENT COMPANY HAD NO COMMENT 9302260002 930226 BUSINESS BRIEF ROYAL TRUSTCO LTD SEARCH FOR PARTNER NARROWED TO ROYAL BANK OF CANADA ROYAL TRUSTCO LTD TORONTO SAID IT HAS NARROWED THE FIELD OF POSSIBLE PARTNERS TO BAIL OUT THE BELEAGUERED FINANCIAL SERVICES CONCERN AND IS NOW NEGOTIATING ONLY WITH ROYAL BANK OF CANADA ROYAL TRUSTCO HAS SAID IT WANTS A PARTNER TO TAKE AN EQUITY STAKE PROBABLY SUPPLANTING A COMPANY CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN AS THE MAIN SHAREHOLDER BUT FINANCIAL ANALYSTS THINK ROYAL BANK IS ONLY INTERESTED IN ROYAL TRUSTCO'S RELATIVELY HEALTHY CANADIAN BUSINESS AND DOESN'T WANT ITS PROBLEM LOAN PORTFOLIOS IN THE US AND BRITAIN ROYAL BANK IS INTERESTED IN GOOD QUALITY CANADIAN ASSETS AND THAT'S ALL MOST FINANCIAL INSTITUTIONS HAVE ENOUGH PROBLEMS IN THEIR OWN PORTFOLIOS WITHOUT ACQUIRING ADDITIONAL WEAK ASSETS SAID KEVIN CHOQUETTE AN ANALYST AT FIRST BOSTON CANADA LTD ROYAL TRUSTCO LAST MONTH SAID IT WAS SEEKING A VERY SUBSTANTIAL INVESTMENT OF MORE THAN 200 MILLION CANADIAN DOLLARS US1588 MILLION ROYAL TRUSTCO IS 48 OWNED BY TRILON FINANCIAL CORP A BRONFMAN GROUP HOLDING COMPANY 9302260001 930226 TECHNOLOGY BRIEF AMERICAN TELEPHONE & TELEGRAPH NEW 800 SERVICE RECOGNIZES SPOKEN SELECTION OF OPTIONS AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID IT IS OFFERING AN 800 SERVICE THAT ALLOWS CALLERS TO SELECT OPTIONS BY SPEAKING INSTEAD OF USING THE PHONE KEYPAD THE SYSTEM ALLOWS CALLERS INCLUDING THOSE ON ROTARY PHONES TO SPEAK A NUMBER FROM ONE TO NINE CORRESPONDING TO A MENU OF OPTIONS THAT IDENTIFIES THE DEPARTMENT IN A COMPANY THEY ARE CALLING THE CALL IS THEN ROUTED TO THAT LOCATION AT&T SAID SUCH SPEECH RECOGNITION SYSTEMS ALSO BEING DEVELOPED BY OTHER PHONE COMPANIES WILL EVENTUALLY ALLOW CUSTOMERS TO PROCESS ORDERS ASK FOR REPAIR SERVICES AND RECEIVE ACCOUNT INFORMATION ABOUT 39 OF TELEPHONES IN THE US ARE ROTARY AT&T SAID 9302250182 930225 BUDGET DEFICITS HAVE LITTLE IMPACT ON INTEREST RATES BY DANIEL J MITCHELL THE PRESIDENT AND HIS ADVISERS ARE TRYING TO CONVINCE AMERICANS THAT THEY WILL BENEFIT FROM HIGHER TAXES BECAUSE A SHRINKING BUDGET DEFICIT WILL LEAD TO LOWER INTEREST RATES THEIR ARGUMENT HOWEVER RESTS UPON TWO RATHER DUBIOUS PROPOSITIONS FIRST IT ASSUMES THAT LAWMAKERS WILL RESIST THE TEMPTATION TO SPEND NEW TAX REVENUES MORE ON THIS LATER SECOND IT TAKES AS A GIVEN THAT THERE EXISTS A STRONG POSITIVE RELATIONSHIP BETWEEN BUDGET DEFICITS AND INTEREST RATES THERE IS REASON TO BELIEVE THAT INTEREST RATES ARE TOO HIGH BECAUSE OF THE BUDGET DEFICIT EVERY ELEMENTARY ECONOMICS BOOK TEACHES THAT INCREASED DEMAND FOR A GOOD OR SERVICE WILL BID UP THE PRICE OF THE PRODUCT IT SHOULD THEREFORE FOLLOW THAT HIGHER FEDERAL BUDGET DEFICITS WILL DRIVE UP THE PRICE OF BORROWING MONEY WHILE THIS MAKES INTUITIVE SENSE HISTORICAL EVIDENCE AND ACADEMIC RESEARCH CAST DOUBT ON THE RELATIONSHIP BUDGET DEFICITS HAVE FLUCTUATED WIDELY IN THE PAST 20 YEARS YET THE ACCOMPANYING SHIFTS IN INTEREST RATES PREDICTED BY THEORY HAVE FAILED TO MATERIALIZE INTEREST RATES FOR INSTANCE HAVE DROPPED SUBSTANTIALLY SINCE 1989 EVEN THOUGH THE BUDGET DEFICIT HAS MORE THAN DOUBLED IN NOMINAL DOLLARS AND NEARLY DOUBLED AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT THE CLINTON ADMINISTRATION'S CLAIM IS FURTHER UNDERMINED BY WHAT HAPPENED TO BUDGET DEFICITS AND INTEREST RATES IN THE EARLY 1980S THE BUDGET DEFICIT ROSE SIGNIFICANTLY EARLY IN PRESIDENT REAGAN'S FIRST TERM CLIMBING FROM 27 OF GDP IN 1981 TO 41 OF GDP IN 1982 AND THEN UP TO 63 OF GDP IN 1983 CONTRARY TO THEORY HOWEVER INTEREST RATES FELL IN BOTH 1982 AND 1983 THE DECLINE IN INTEREST RATES WAS BROADLY BASED INTEREST RATES ON THREEMONTH THREEYEAR AND 10YEAR GOVERNMENT DEBT FELL AS DID THE PRIME RATE AND THE AVERAGE RATE CHARGED FOR HOME MORTGAGES SIMILARLY MOST INTEREST RATES FELL IN 1975 EVEN THOUGH THE BUDGET DEFICIT EXPERIENCED ITS LARGEST SINGLEYEAR INCREASE CONSUMING AN ADDITIONAL 31 OF GDP COMPARED WITH THE PREVIOUS YEAR OVER THE PAST 20 YEARS INTEREST RATES AND BUDGET DEFICITS HAVE TRAVELED IN OPPOSITE DIRECTIONS 76 OF THE TIME MOREOVER IN EIGHT OF THE 20 YEARS ALL FIVE INTEREST RATES MEASURED BEHAVED CONTRARY TO THEORY MOVING UP WHEN THE BUDGET DEFICIT DECLINED AND VICEVERSA BY CONTRAST ONLY ONCE IN THE PAST 20 YEARS DID ALL INTEREST RATES TRAVEL IN THE SAME DIRECTION AS THE BUDGET DEFICIT THIS DOES NOT MEAN HOWEVER THAT THE LAWS OF SUPPLY AND DEMAND DO NOT APPLY TO INTEREST RATES INSTEAD IT SUGGESTS THAT INTEREST RATES ARE INFLUENCED BY MORE THAN JUST CHANGES IN THE LEVEL OF GOVERNMENT BORROWING WHEN TAXES ARE INCREASED FOR INSTANCE INTEREST RATES ARE PUSHED HIGHER BECAUSE THE PRETAX RATE OF RETURN NEEDED TO ATTRACT CAPITAL CLIMBS TAX CUTS PARTICULARLY ON SAVINGS AND INVESTMENT WILL HAVE THE OPPOSITE EFFECT DRIVING INTEREST RATES DOWN AS THE GAP BETWEEN THE PRE AND POSTTAX RATES OF RETURN SHRINKS EXPECTATIONS OF RISING INFLATION ALSO WILL PUT UPWARD PRESSURE ON INTEREST RATES REGARDLESS OF WHETHER BUDGET DEFICITS ARE CLIMBING OR FALLING ADDITIONALLY CHANGES IN OVERALL ECONOMIC CONDITIONS CAN INFLUENCE INTEREST RATES ECONOMIC SLOWDOWNS IN 1975 1982 AND 199091 DOUBTLESSLY CONTRIBUTED TO THE DECLINE IN INTEREST RATES BY REDUCING DEMAND FOR CREDIT AND LOWERING INFLATION EXPECTATIONS EVEN AFTER THESE ADDITIONAL FACTORS ARE TAKEN INTO CONSIDERATION HOWEVER THERE STILL DOES NOT SEEM TO BE ANY STRONG EVIDENCE THAT BUDGET DEFICITS HAVE A SIGNIFICANT IMPACT ON INTEREST RATES USING STATISTICAL ANALYSIS TO ISOLATE THE IMPACT OF GOVERNMENT BORROWING ON INTEREST RATES ECONOMISTS HAVE FAILED TO FIND A STRONG LINK BETWEEN THE TWO A 1984 STUDY BY THE TREASURY DEPARTMENT THE EFFECT OF DEFICITS ON PRICES OF FINANCIAL ASSETS THEORY AND EVIDENCE FOUND NO RELATIONSHIP BETWEEN BUDGET DEFICITS AND INTEREST RATES THE TREASURY STUDY IS ECHOED BY NUMEROUS STUDIES IN SCHOLARLY JOURNALS AGAIN THESE STUDIES DO NOT MEAN THAT BUDGET DEFICITS HAVE NO IMPACT ON INTEREST RATES INSTEAD THE EVIDENCE MERELY SUGGESTS THAT 30 BILLION 40 BILLION OR 50 BILLION SHIFTS IN THE US BUDGET DEFICIT ARE RELATIVELY TRIVIAL IN WORLD CAPITAL MARKETS TOTALING TRILLIONS OF DOLLARS THE EVIDENCE ALSO INDICATES THAT ANY MARGINAL IMPROVEMENT IN INTEREST RATES CAUSED BY LESS GOVERNMENT BORROWING COULD BE MORE THAN OFFSET IF THE ROUTE CHOSEN HIGHER TAXES DRIVES INTEREST RATES HIGHER IN A VERY REAL SENSE HOWEVER THE PRECEDING DEBATE IS MEANINGLESS SINCE IT IS BASED ON THE DISCREDITED NOTION THAT HIGHER TAXES WILL RESULT IN A SMALLER DEFICIT SUBSTANTIAL TAX INCREASES WERE ENACTED IN 1982 1984 1987 AND 1990 AS PART OF DEFICITREDUCTION PACKAGES YET IN EVERY CASE THE DEFICIT ROSE THE FOLLOWING YEAR THERE ARE TWO REASONS WHY HIGHER TAXES GENERATE LARGER DEFICITS FIRST CONGRESS SIMPLY SPENDS NEW TAX REVENUE A JOINT ECONOMIC STUDY FOR INSTANCE FOUND THAT EVERY 1 OF NEW TAXES SINCE 1947 HAS 159 OF NEW SPENDING ASSOCIATED WITH IT SECOND TAX INCREASES RARELY IF EVER GENERATE THE AMOUNT OF NEW REVENUE PREDICTED BY THE ECONOMIC MODELS USED BY CONGRESSIONAL REVENUEESTIMATORS THESE MODELS ASSUME THAT TAXES HAVE NO NEGATIVE IMPACT ON THE ECONOMY AND THAT TAXPAYERS WILL NOT ALTER THEIR BEHAVIOR TO PROTECT THEIR EARNINGS IN THE REAL WORLD OF COURSE TAXES REDUCE INCENTIVES TO WORK SAVE CONSUME AND INVEST ONE NEED ONLY EXAMINE THE IMPACT OF LUXURY TAXES ENACTED AS PART OF THE 1990 BUDGET DEAL ON THE BOATBUILDING INDUSTRY TO SEE THE EFFECT OF TAX INCREASES MR CLINTON'S TAX INCREASE PLAN WILL NOT STIMULATE ECONOMIC GROWTH AND LOWER INTEREST RATES INSTEAD BY REPEATING THE FAILED TAXANDSPEND POLICIES OF HERBERT HOOVER JIMMY CARTER AND GEORGE BUSH BILL CLINTON WILL GIVE AMERICA FEWER JOBS BIGGER BUDGET DEFICITS A WEAKER ECONOMY AND HIGHER INTEREST RATES MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON 9302250181 930225 REVIEW & OUTLOOK EDITORIAL LESSONS FROM CANADA BRIAN MULRONEY RESIGNED AS CANADA'S PRIME MINISTER YESTERDAY AFTER CONCLUDING THAT HIS UNPOPULARITY WOULD COST HIS PARTY THE NEXT ELECTION CANADIAN VOTERS MAY HAVE WEARIED OF MR MULRONEY BUT WE SUSPECT THEY MAY COME TO REGRET HIS ABSENCE MR MULRONEY WAS WILLING TO GO AGAINST FASHIONABLE CANADIAN THINKING AND MAKE SOME TOUGH DECISIONS THAT PAID OFF MOST NOTABLY THE USCANADIAN FREE TRADE AGREEMENT HE NEGOTIATED HAS BEEN AN ECONOMIC BOON TO BOTH COUNTRIES MR MULRONEY CALLED AN ELECTION ON THE ISSUE OF FREE TRADE IN 1988 AND WON A RESOUNDING VICTORY HE OVERCAME CRITICS WHO SAID THAT FREE TRADE WOULD BE BAD FOR WORKERS AND THE ENVIRONMENT THE CLINTON ADMINISTRATION BENDING BENEATH THE UNIONS GREENS AND GEPHARDTS IS NOW RAISING THE SAME SPECIOUS OBJECTIONS AGAINST FREE TRADE WITH MEXICO MR MULRONEY HAS PRIVATELY WARNED US OFFICIALS THAT THE PENDING TRADE AGREEMENT WITH MEXICO COULD COLLAPSE IF OVERBEARING US NEGOTIATORS TRY TO REWRITE IT THAT WOULD UNDERMINE THE REMARKABLE PROGRESS THAT PRESIDENT SALINAS HAS MADE IN FREEING UP MEXICO'S ECONOMY AND POLITICS AND WOULD INCREASE IMMIGRATION PRESSURES ON THE US WE HOPE THAT MR MULRONEY'S SUCCESSOR SHARES HIS COMMITMENT TO FREE TRADE CANADA'S NEW LEADER SHOULD ALSO CONTINUE MR MULRONEY'S UNDERLYING ECONOMIC REFORMS A DECADE AGO CANADA HAD STATERUN CORPORATIONS IN OIL AN AIRLINE AND NATURAL GAS ALL HAVE NOW BEEN PRIVATIZED FEDERAL SPENDING OUTSIDE OF INTEREST PAYMENTS HAS DROPPED FROM 195 OF GDP WHEN MR MULRONEY TOOK OFFICE TO 167 TODAY IF BILL CLINTON REALLY WANTED TO MAKE MORE THAN ERSATZ SPENDING CUTS HE COULD LEARN SOMETHING BY LOOKING NORTH MR MULRONEY DID FALL INTO THE OLD TRAP OF RAISING TAXES WHICH IN PART LED TO HIS DOWNFALL IN 1991 CANADA IMPOSED A NATIONAL SALES TAX THE TAX IS REVILED AND ALL OPPOSITION PARTIES WANT TO SCRAP IT BEFORE HE THINKS ABOUT PROPOSING A SIMILAR LEVY TO FINANCE NATIONAL HEALTH CARE BILL CLINTON SHOULD LOOK LONG AND HARD AT WHAT SUCH A TAX COST MR MULRONEY 9302250180 930225 WHO'S NEWS PARLEX CORP PARLEX CORP METHUEN MASS ALFRED R CALVETTI GENERAL MANAGER OF THE LAMINATED CABLE DIVISION WAS NAMED TO THE ADDITIONAL POSITION OF CORPORATE VICE PRESIDENT OF THIS ELECTRONICS PARTS MAKER 9302250179 930225 SHORT INTEREST IN OTC STOCKS INCREASES 26 TOTAL RISES IN BOTH SECTORS BORLAND SNAPPLE SHOW HIGHER FIGURE IN MONTH BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ROSE IN THE OVERTHECOUNTER STOCK MARKET FOR THE SECOND CONSECUTIVE MONTH CLIMBING 26 IN MIDFEBRUARY TO 4773 MILLION SHARES FROM MIDJANUARY'S 4652 MILLION ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST CLIMBED 25 TO 449 MILLION SHARES FROM 4382 MILLION THE MONTH ALSO SAW A JUMN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT ONETHIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS ROSE 46 TO 283 MILLION SHARES SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST MEANS THE TOTAL AMOUNT OF SHARES SOLD SHORT AT ANY POINT IN TIME IN THIS CASE THOSE REPORTED AS OF FEB 5 AND SETTLED AS OF FEB 12 THE PREVIOUS MONTH'S FIGURES ARE ADJUSTED BY NASDAQ OFFICIALS DURING EACH MONTH TO REFLECT THE LATEST INFORMATION FOR THE MOST PART SHORT SELLERS HAVE BEEN ABLE TO MAKE BACK SOME OF THE MONEY THEY LOST DURING THE SMALLSTOCK RALLY IN DECEMBER AND JANUARY MANY TRADERS WHO HAD SHORTED STOCK WERE FORCED TO COVER THEIR POSITIONS IN WHAT'S CALLED A SHORT SQUEEZE BECAUSE THE NASDAQ OTC MARKET ROSE 225 FROM THE BEGINNING OF OCTOBER TO AN ALLTIME HIGH EARLIER THIS MONTH BUT THE RECENT INCREASE IN SHORT INTEREST CONTRASTS WITH A RECENT DECREASE IN THE OTC STOCK BENCHMARK KNOWN AS THE NASDAQ COMPOSITE INDEX WHICH AT YESTERDAY'S 66246 IS DOWN 65 FROM ITS FEBRUARY HIGH OF 70885 SHORT SELLERS WERE CAUTIOUS FOR A FEW MONTHS AND WITH THE BREAK IN THE MARKET THEY HAVE BECOME A LOT BOLDER SAYS HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA WHO TRACKS SHORT SELLERS MR STRUNK SAYS THE AVERAGE SHORT SELLER HAS GAINS OF ABOUT 6 TO 7 FOR THE YEAR THIS MONTH WAS GOOD FOR SHORT SELLERS EVEN THOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK SOME ANALYSTS SAY SHORT INTEREST OFTEN DOESN'T REFLECT ANY OPINION ON A STOCK AT ALL BUT SHOWS UP AS PART OF ANOTHER STRATEGY SUCH AS ARBITRAGE OR DIVIDEND CAPTURE THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDFEBRUARY IS THE SAME AS LAST MONTH'S 199 WHILE THE SHORT INTEREST RATIO FOR SMALLER NASDAQ STOCKS EASED TO 071 FROM 073 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO ALSO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS BORLAND INTERNATIONAL REGISTERED A LARGE SHORTINTEREST POSITION OF 48 MILLION SHARES UP 14 FROM 42 MILLION ON TUESDAY THE STOCK SLID 3/4 WHEN THE COMPANY SAID IT WON'T SHIP THE FIRST WINDOWS VERSION OF ITS DBASE PROGRAM UNTIL LATE THIS YEAR OR EARLY NEXT YEAR WALL STREET ANALYSTS HAD EXPECTED THE PRODUCT TO BE RELEASED IN JUNE YESTERDAY THE STOCK REBOUNDED 1 TO 19 3/4 SHORT INTEREST IN SNAPPLE BEVERAGE CO MORE THAN DOUBLED TO 13 MILLION SHARES FROM 550681 THE HIGHFLYING NEW STOCK YESTERDAY CLOSED UP 1/2 AT 33 OR 65 ABOVE ITS DECEMBER OFFERING PRICE OF 20 SHORT INTEREST IN OUTBACK STEAKHOUSE CLIMBED TO 31 MILLION SHARES FROM 29 MILLION A MONTH EARLIER LAST WEEK SALOMON BROTHERS INITIATED COVERAGE OF THE STOCK WITH AN UNDERPERFORM RATING BASED MOSTLY ON PRICE THE BROKERAGE FIRM SAID THE STOCK IS UP SHARPLY FROM THE 1991 INITIAL PUBLIC OFFERING PRICE OF 5 AND NOW FULLY REFLECTS THE BESTCASE GROWTH SCENARIOS YESTERDAY IT JUMPED 2 1/2 TO 26 THE FOLLOWING TABLES SHOW THE OVERTHECOUNTER ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDFEBRUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJANUARY SEE ACCOMPANYING TABLES WSJ FEB 9302250178 930225 BUSINESS BRIEF CALDOR CORP SALES HELPED BOOST EARNINGS 28 IN FISCAL FOURTH QUARTER CALDOR CORP'S FISCAL FOURTHQUARTER EARNINGS ROSE 28 AS THE DISCOUNT RETAILER REPORTED STRONGER SALES AND IMPROVING GROSS MARGINS FOR THE QUARTER ENDED JAN 30 CALDOR REPORTED NET INCOME OF 363 MILLION OR 245 A SHARE COMPARED WITH 284 MILLION OR 195 A SHARE SALES INCREASED 18 TO 7505 MILLION BASED IN NORWALK CONN CALDOR SAID ITS METHOD OF TAILORING A STORE'S MERCHANDISE MIX TO ITS PARTICULAR LOCATIONURBAN OR SUBURBANHAS PROVED SUCCESSFUL IN THE COMPANY'S CORE NORTHEAST AND MIDATLANTIC MARKETS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AFTERNOON CALDOR SHARES WERE QUOTED AT 31 UP 2 FOR THE YEAR NET INCOME ROSE SHARPLY TO 345 MILLION OR 235 A SHARE FROM 23 MILLION OR 17 CENTS A SHARE SALES ROSE 14 TO 213 BILLION THE YEARAGO FIGURES REFLECT SIGNIFICANT CHARGES RELATED TO THE COMPANY'S APRIL 1991 PUBLIC OFFERING 9302250177 930225 WHO'S NEWS COLLABORATIVE RESEARCH INC COLLABORATIVE RESEARCH INC WALTHAM MASS ROBERT J HENNESSEY 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLOGY CONCERN EFFECTIVE MARCH 15 MR HENNESSEY CURRENTLY PRESIDENT OF HENNESSEY & ASSOCIATES LTD A WESTPORT CONN PRIVATE CONSULTING FIRM SUCCEEDS ORRIE M FRIEDMAN 77 WHO WILL CONTINUE AS CHAIRMAN 9302250176 930225 WHO'S NEWS DORNA PROMOTION DEL DEPORTE SA DORNA PROMOTION DEL DEPORTE SA MADRID HARRY L USHER 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SPORTS MARKETING CONCERN'S US UNIT DORNA USA IN NEW YORK EFFECTIVE MARCH 3 MR USHER FORMERLY HEAD OF THE COMPANY'S DORNA SPORTS DIVISION SUCCEEDS RICHARD H EVANS WHO WAS NAMED CHIEF OPERATING OFFICER OF GAYLORD ENTERTAINMENT CO NASHVILLE TENN 9302250175 930225 WHO'S NEWS AMERICAN ELECTRIC POWER CO AMERICAN ELECTRIC POWER CO COLUMBUS OHIO LINDA GILLESPIE STUNTZ 38 YEARS OLD FORMER US DEPUTY ENERGY SECRETARY WAS NAMED A DIRECTOR OF THIS ELECTRIC UTILITY HOLDING COMPANY HER ELECTION EXPANDS THE BOARD TO 14 MEMBERS 9302250174 930225 JUSTICES UPHOLD INNOCENTOWNER DEFENSE IN DRUG LAW ALLOWING SEIZURE OF ASSETS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT TOUGHER FOR FEDERAL PROSECUTORS TO CONFISCATE PROPERTY THEY BELIEVE WAS ACQUIRED WITH DRUG MONEY THE 63 RULING WON'T HINDER GOVERNMENT EFFORTS TO GO AFTER SUSPECTED DRUG DEALERS BY SEIZING THEIR ASSETS BUT IT WILL ALLOW THIRD PARTIES WHO RECEIVE TAINTED MONEY TO FIGHT SEIZURE OF THEIR PROPERTY BY ASSERTING THEY WEREN'T AWARE OF THE ALLEGED ORIGIN OF THE FUNDS THE HIGH COURT'S DECISION WAS A VICTORY FOR THE BANKING INDUSTRY WHICH HAS GROWN INCREASINGLY WORRIED THAT THE GOVERNMENT WILL SEIZE PROPERTY THAT SECURES LOANS UNWITTINGLY EXTENDED BY MORTGAGE BANKERS TO PEOPLE WITH CRIMINAL CONNECTIONS THE AMERICAN BANKERS ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP FILED SEPARATE BRIEFS OPPOSING THE JUSTICE DEPARTMENT WHICH DEFENDED THE CURRENT PRACTICE UNDER FEDERAL LAW PROSECUTORS MAY INITIATE CIVIL FORFEITURE PROCEEDINGS WITHOUT LAUNCHING CRIMINAL PROSECUTIONS TO CONFISCATE PROPERTY ALLEGEDLY USED IN OR BOUGHT WITH THE PROCEEDS OF DRUG CRIMES TO PREVAIL IN SUCH CASES THE GOVERNMENT MUST SHOW ONLY THAT THERE IS PROBABLE CAUSE TO THINK THERE IS A DRUG CONNECTION TO THE PROPERTY THE PROPERTY'S OWNER MUST THEN TRY TO PROVE OTHERWISE SEIZING ALLEGED CRIMINAL PROFITS AND ASSETS HAS BECOME A CENTRAL PART OF ANTIDRUG STRATEGY SINCE CONGRESS BEGAN EXPANDING FEDERAL FORFEITURE LAWS IN THE LATE 1970S PROSECUTORS SAY DRUG DEALERS COMMONLY TRY TO DISGUISE THEIR ILLICIT HOLDINGS BY NOMINALLY GIVING THEM TO FRIENDS OR FAMILY IN THE CASE THE SUPREME COURT DECIDED FEDERAL PROSECUTORS ATTEMPTED TO SEIZE THE 240000 HOME OF A NEW JERSEY WOMAN BETH ANN GOODWIN WITHOUT CRIMINALLY PROSECUTING HER THE GOVERNMENT ALLEGED SHE BOUGHT THE HOUSE WITH DRUG PROCEEDS GIVEN TO HER BY A BOYFRIEND WHO WAS A MARIJUANA SMUGGLER MS GOODWIN INSISTED THAT SHE DIDN'T KNOW ABOUT THE ORIGINS OF THE MONEY AND THAT THE FORFEITURE LAW PROVIDES FOR AN EXCEPTION PROTECTING INNOCENT OWNERS OF ALLEGEDLY TAINTED PROPERTY A FEDERAL TRIAL JUDGE PREVENTED MS GOODWIN FROM MOUNTING THE INNOCENTOWNER DEFENSE BUT THE US COURT OF APPEALS FOR THE THIRD CIRCUIT IN PHILADELPHIA REVERSED THAT RULING THE GOVERNMENT APPEALED TO THE SUPREME COURT WHICH AFFIRMED THE THIRD CIRCUIT'S RULING AND SENT THE CASE BACK TO THE LOWER COURTS FOR FURTHER PROCEEDINGS ON MS GOODWIN'S INNOCENCE CLAIM JUSTICE JOHN PAUL STEVENS WRITING FOR HIMSELF AND JUSTICES HARRY BLACKMUN SANDRA DAY O'CONNOR AND DAVID SOUTER SAID THAT THE TEXT OF THE FORFEITURE STATUTE UNEQUIVOCALLY ESTABLISHES AN INNOCENTOWNER DEFENSE JUSTICE STEVENS REJECTED THE GOVERNMENT'S ARGUMENT THAT MS GOODWIN NEVER ACTUALLY OWNED THE NEW JERSEY HOUSE BECAUSE THE 240000 IN ALLEGED DRUG PROCEEDS HAD BECOME GOVERNMENT PROPERTY AT THE INSTANT IT WAS RECEIVED BY HER BOYFRIEND THIS ARGUMENT WOULD EFFECTIVELY ELIMINATE THE INNOCENTOWNER DEFENSE JUSTICE STEVENS WROTE ADDING IT SEEMS UNLIKELY THAT CONGRESS WOULD CREATE A MEANINGLESS DEFENSE JUSTICE ANTONIN SCALIA WROTE A SEPARATE OPINION CONCURRING IN THE PLURALITY'S CONCLUSION BUT REJECTING ASPECTS OF ITS REASONING JUSTICE CLARENCE THOMAS SIGNED THE CONCURRENCE WRITING IN DISSENT JUSTICE ANTHONY KENNEDY SAID NOBODY HAS A RIGHT TO KEEP PROPERTY PURCHASED WITH A GIFT OF DRUG MONEY MS GOODWIN'S CLAIM TO THE HOUSE IS NO STRONGER THAN HER BOYFRIEND'S WOULD BE JUSTICE KENNEDY ASSERTED HE SAID THE RULING LEAVES THE FORFEITURE SCHEME THAT IS THE CENTERPIECE OF THE NATION'S DRUG ENFORCEMENT LAWS IN QUITE A MESS CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICE BYRON WHITE JOINED THE DISSENT 9302250173 930225 WHO'S NEWS VALASSIS COMMUNICATIONS INC VALASSIS COMMUNICATIONS INC LIVONIA MICH BRIAN M POWERS 43 YEARS OLD FORMERLY GENERAL PARTNER OF HELLMAN & FRIEDMAN SAN FRANCISCO WAS ELECTED CHAIRMAN OF THIS PRODUCER OF MAGAZINE INSERTS HE SUCCEEDS ALBERT J DUNLAP WHO RESIGNED LAST WEEK 9302250172 930225 EQUITABLE TO MERGE TWO UNITS NEW YORK EQUITABLE COS SAID IT SIGNED A DEFINITIVE AGREEMENT TO MERGE ITS ALLIANCE CAPITAL MANAGEMENT LP AND EQUITABLE CAPITAL MANAGEMENT CORP MONEY MANAGEMENT UNITS THE MERGER WHICH STILL REQUIRES A VOTE BY ALLIANCE UNIT HOLDERS WILL CREATE ONE OF THE LARGEST MONEYMANAGEMENT FIRMS IN THE COUNTRY WITH NEARLY 100 BILLION UNDER MANAGEMENT THE MERGED FIRM WILL KEEP THE ALLIANCE NAME EQUITABLE NOW OWNS 55 OF ALLIANCE THE MERGER VALUED AT ABOUT 250 MILLION WILL BOOST EQUITABLE'S STAKE TO 63 9302250171 930225 WHO'S NEWS PALFED INC SELECTS TROUTMAN TO SUCCEED HERRING AS PRESIDENT AIKEN SC PALFED INC NAMED JOHN C TROUTMAN PRESIDENT OF THIS BANKING COMPANY MR TROUTMAN 53 YEARS OLD SUCCEEDS RICHARD W HERRING FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO WAS PLACED ON AN INDEFINITE LEAVE OF ABSENCE IN OCTOBER AFTER INTERNAL AUDITORS DISCOVERED FINANCIAL DISCREPANCIES MR HERRING WAS INDICTED FEB 2 IN COLUMBIA SC ON ONE FEDERAL COUNT OF BANK FRAUD HE IS ACCUSED OF EMBEZZLING 60200 FROM THE BANK PENDING APPROVAL FROM REGULATORY AUTHORITIES MR TROUTMAN WILL BEGIN AS PRESIDENT MARCH 1 PREVIOUSLY HE WAS A SENIOR EXECUTIVE AND REGIONAL EXECUTIVE VICE PRESIDENT FOR CITIZENS & SOUTHERN NATIONAL BANK OF FLORIDA NOW NATIONSBANK PALFED'S PRIMARY SUBSIDIARY PALMETTO FEDERAL OPERATES 16 BRANCH OFFICES IN SOUTH CAROLINA PALFED HAD 746 MILLION IN CONSOLIDATED ASSETS AND 530 MILLION IN DEPOSITS LAST YEAR 9302250170 930225 BROOKSTONE PLANS STOCK OFFERING PETERBOROUGH NH BROOKSTONE INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 2750000 COMMON SHARES AT 10 TO 12 EACH THE SPECIALTY RETAILER WHICH SELLS AN ECLECTIC BLEND OF ITEMS INCLUDING 2000 MASSAGE CHAIRS AND KNEE PADS FOR GARDENERS INITIALLY FILED FOR A PUBLIC OFFERING IN APRIL 1992 BUT THEN BACKED AWAY THE MARKET FOR IPOS JUST DRIED UP IN THE SUMMER SO WE DECIDED TO WAIT A SPOKESMAN SAID BROOKSTONE WHICH PLANS TO USE NET PROCEEDS TO RETIRE DEBT SAID 1830000 SHARES WILL BE OFFERED BY THE COMPANY AND 920000 WILL BE OFFERED BY CURRENT SHAREHOLDERS UNDERWRITING OF THE OFFERING WILL BE LED BY ROBERTSON STEPHENS & CO 9302250169 930225 WHO'S NEWS ACADIA SERVICES INC ACADIA SERVICES INC MENLO PARK CALIF PRISCILLA FLORENCE A VICE PRESIDENT OF WORLD CUP USA 94 WAS NAMED TO THE BOARD OF THIS PERSONNEL SERVICES COMPANY BRINGING THE MEMBERSHIP TO 12 ADIA SERVICES INC NAMED PRISCILLA FLORENCE A VICE PRESIDENT OF WORLD CUP USA 94 TO ITS BOARD IN A WHO'S NEWS ITEM YESTERDAY THE COMPANY WAS INCORRECTLY IDENTIFIED AS ACADIA SERVICES INC 9302250168 930225 TECHNOLOGY HYAL SETS DRUG TESTS IN CANADA MISSISSAUGA ONTARIO HYAL PHARMACEUTICAL CORP SAID CANADA'S HEALTH PROTECTION BRANCH APPROVED PHASE III CLINICAL TRIALS IN CANADA FOR THE COMPANY'S TOPICAL ANALGESIC AT2101 FOR RELIEF OF PAIN CAUSED BY OSTEOARTHRITIS OF THE KNEE THE CLINICAL TRIAL WILL COMPARE THE PAIN RELIEF OF AT2101 WITH THAT OF A PLACEBO GEL THE COMPANY SAID IT WILL APPLY TO THE FOOD AND DRUG ADMINISTRATION IN THE FIRST HALF OF THIS YEAR FOR APPROVAL OF CLINICAL TRIALS IN THE US HYAL SAID RESULTS OF A CLINICAL TRIAL OF AT2101 IN AUSTRIA SHOWED SIGNIFICANT LEVELS OF EFFICACY IN 60 RHEUMATOID AND OSTEOARTHRITIC PATIENTS HYAL PHARMACUETICAL IS DEVELOPING SEVERAL DRUGS THAT HAVEN'T YET BEEN MARKETED 9302250167 930225 MOODY'S DOWNGRADES ITS RATINGS ON DEBT OF UTILICORP UNITED NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS RATINGS OF UTILICORP UNITED INC DEBT CITING WHAT IT CALLED THE FAILURE OF THE COMPANY'S DIVERSIFICATION STRATEGY TO PRODUCE EXPECTED RESULTS MOODY'S LOWERED ITS RATING OF FIRSTMORTGAGE BONDS TO BAA2 FROM BAA1 UNSECURED SENIOR NOTES TO BAA3 FROM BAA2 SHELF REGISTRATION OF UNSECURED SENIOR NOTES TO P BAA3 FROM P BAA2 CONVERTIBLE SUBORDINATED DEBENTURES TO BA1 FROM BAA3 PREFERENCE STOCK TO BA1 FROM BAA2 AND ITS SHORTTERM RATING ON COMMERCIAL PAPER TO P3 FROM P2 THE RATING SERVICE SAID EFFORTS BY THE KANSAS CITY MOBASED UTILITY TO ACHIEVE GROWTH AND DIVERSIFY ITS WEATHER AND REGULATORY MIX THROUGH VARIOUS ACQUISITIONS HAVE NOT GENERATED THE EXPECTED LEVEL OF PERFORMANCE AND HAVE PRESSURED THE COMPANY'S FINANCIAL FLEXIBILITY A COMPANY SPOKESMAN SAID WE'RE DISAPPOINTED ADDING THAT HOPEFULLY THE BENEFITS OF OUR STRATEGY THAT THEY WERE CONCERNED ABOUT WILL PAY OFF OVER TIME 9302250166 930225 WHO'S NEWS MARTIN MARIETTA BOARD MEMBERS BETHESDA MD MARTIN MARIETTA CORP SAID EDWARD E HOOD JR AND EUGENE F MURPHY WILL BE NOMINATED FOR ELECTION TO ITS BOARD PENDING THE CLOSING OF ITS ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION THE NEW MEMBERS WOULD EXPAND THE BOARD TO 16 MR HOOD 62 YEARS OLD WAS A VICE CHAIRMAN AND DIRECTOR OF GE UNTIL FEB 1 MR MURPHY 56 IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GE'S AEROSPACE UNIT AND A SENIOR VICE PRESIDENT OF GE MESSRS HOOD AND MURPHY WILL STAND FOR ELECTION AT THE DEFENSE CONTRACTOR'S APRIL 22 ANNUAL MEETING MARTIN MARIETTA ALSO WILL HOLD A SPECIAL MEETING MARCH 25 AT WHICH SHAREHOLDERS WILL VOTE ON THE COMPANY'S PROPOSED 306 BILLION GE ACQUISITION A SPOKESMAN FOR MARTIN MARIETTA SAID THE DEAL IS STILL UNDER ANTITRUST REVIEW BY THE JUSTICE DEPARTMENT THE COMPANY EXPECTS APPROVAL BY THE END OF MARCH 9302250165 930225 WHO'S NEWS CONSOLIDATED EDISON CO CONSOLIDATED EDISON CO NEW YORK THE ELECTRIC AND GAS UTILITY ANNOUNCED THE REASSIGNMENT OF SEVERAL SENIOR MANAGERS ARTHUR J BENNETT 57 YEARS OLD WAS NAMED VICE PRESIDENT BROOKLYN CUSTOMER SERVICE HE WAS SUCCEEDED IN HIS PREVIOUS POSITION AS VICE PRESIDENT TRANSPORTATION AND STORES BY 49YEAROLD EDWARD J CAREY FORMERLY GENERAL AUDITOR MR CAREY WAS SUCCEEDED IN THAT POST BY LAWRENCE F TRAVAGLIA 54 FORMER ASSISTANT TREASURER KEVIN M BURKE 42 WAS NAMED VICE PRESIDENT CORPORATE PLANNING HE WAS PREVIOUSLY VICE PRESIDENT BROOKLYN CUSTOMER SERVICE JAMES F MCMAHON 58 WAS NAMED GENERAL TAX COUNSEL FROM ASSISTANT GENERAL TAX COUNSEL SUCCEEDING FREDERICK J HUNZICKER JR WHO RETIRED 9302250163 930225 SWEDISH JOBLESS RATE STOCKHOLM SWEDEN'S OFFICIAL UNEMPLOYMENT RATE EQUALED 75 OF THE LABOR FORCE IN JANUARY ACCORDING TO THE SCB THE NATIONAL STATISTICS AGENCY THE AGENCY SAID 322000 PEOPLE WERE REGISTERED AS JOBLESS IN JANUARY AN INCREASE OF 125000 FROM A YEAR EARLIER AND 60000 MORE THAN IN DECEMBER 9302250162 930225 REVIEW & OUTLOOK EDITORIAL THE BUREAUCRACY STRIKES BACK WE'VE BEEN FOLLOWING HOW MOST STATES AND LOCALITIES FAILED TO REDUCE THEIR PAYROLLS AS PRIVATE EMPLOYERS DID DURING THE RECENT HARD TIMES NOW IT MAY BE TIME TO WATCH THIS METER ON THE FEDERAL GOVERNMENT PRESIDENT CLINTON IS MAKING MUCH OF HIS PLANS TO TRIM WASHINGTON'S WORK FORCE AND IF HE'S SINCERE WE WISH HIM LUCK AT LEAST ON THE CIVILIAN SIDE THIS WEEK HE GOT A SHOT ACROSS HIS BOW FROM A FELLOW ARKANSAN SENATOR DAVID PRYOR THE SENATOR IS CHAIRMAN OF ONE OF THOSE SUBCOMMITTEES THAT MAKE IT DIFFICULT FOR THE EXECUTIVE TO CHALLENGE ENTRENCHED BELTWAY INTERESTS IN THIS CASE THE ONE ON FEDERAL SERVICE MR PRYOR LET MR CLINTON KNOW THAT HE'D LIKE THE PLANNED 14 OVERHEAD REDUCTION BY 1997 TO COME FROM THE OUTSIDE CONTRACTS THE GOVERNMENT LETS AND NOT FROM THE CIVIL SERVICE THE SUBCOMMITTEE STAFF AND THE GENERAL ACCOUNTING OFFICE HAVE BEEN BUSY FOR SOMETIME GATHERING OUTRAGES OF OVERLY EXPENSIVE OR INAPPROPRIATE WORK BEING DONE ON CONTRACT THESE IN TURN ARE BLAMED ON WHAT THE ASSOCIATED PRESS CALLED THE REAGAN AND BUSH ADMINISTRATIONS' ZEAL FOR CUTTING THE GOVERNMENT WORK FORCE WOULD THAT THERE HAD BEEN SUCH ZEAL NO DOUBT THERE ARE MANY INSTANCES OF UNNECESSARY OR INDULGENT CONTRACTS THE BUSH BUDGET OFFICE ISSUED SOME DIRECTIVES LAST YEAR TO REIN IN SOME OF THE ABUSES BUT IT WOULD APPEAR THAT MR PRYOR IS PUSHING TO TRANSFER THE DUTIES NOT END THEM THE AP REPORTS COMMITTEE AIDES SAY THE GOVERNMENT COULD SAVE MONEY ON MANY PROFESSIONAL TASKS SUCH AS AUDITING IF THE WORK WERE DONE INHOUSE BY BUREAUCRATS PUBLICEMPLOYEE UNIONS HAVE LAUNCHED A COUNTERATTACK AGAINST PRIVATIZATION AND CONTRACTING OUT AND WE ARE NOW SEEING EXPOSES OF LOCAL CONTRACTS APPEAR AROUND THE COUNTRY BECAUSE THE ALTERNATIVE IS TO LEAVE THE STATUS QUO IN THE HANDS OF THE HIGH WAGE HIGH PENSION LOW INCENTIVE ENVIRONMENT OF THE PUBLIC PAYROLL IT WILL PAY TO LOOK CRITICALLY AT REPORTS THAT ATTEMPT TO STIGMATIZE REFORM NOBODY EVER SAID REINVENTING GOVERNMENT COULD BE DONE WITHOUT RESISTANCE 9302250161 930225 MARTIN MARIETTA UNIT GETS PACT BETHESDA MD A UNIT OF MARTIN MARIETTA CORP SAID IT RECEIVED A FIVEYEAR 10 MILLION CONTRACT FROM JP FOODSERVICE TO PROVIDE COMPUTER SERVICES MARTIN MARIETTA'S INFORMATION SYSTEMS UNIT BASED IN ORLANDO FLA WILL PERFORM OPERATIONAL SUPPORT SERVICES FOR JP FOODSERVICE'S COMPUTER SYSTEMS AT ITS HEADQUARTERS AND 15 OTHER LOCATIONS JP FOODSERVICE HANOVER MD IS A CLOSELY HELD FOOD DISTRIBUTION COMPANY 9302250160 930225 NOBEL AB PRETAX PROFIT DROPS STOCKHOLM SWEDISH INDUSTRIAL GROUP NOBEL AB SAID PRELIMINARY FIGURES INDICATE PRETAX PROFIT AFTER FINANCIAL ITEMS SLUMPED 56 LAST YEAR DUE MAINLY TO FOREIGNEXCHANGE LOSSES THE GROUP HAD A COMBINED FOREIGN EXCHANGE LOSS OF 750 MILLION KRONOR 97 MILLION LAST YEAR OF WHICH 300 MILLION KRONOR WAS CHARGED DIRECTLY AGAINST PRETAX PROFIT AFTER FINANCIAL ITEMS IT SAID THIS SENT THE GROUP'S PROFIT TUMBLING TO ABOUT 200 MILLION KRONOR FROM 460 MILLION A YEAR EARLIER NOBEL SAID 9302250159 930225 WHO'S NEWS GRANITE INTERNATIONAL CAPITAL GROUP GRANITE INTERNATIONAL CAPITAL GROUP NEW YORK MORGAN B STARK 53 YEARS OLD WAS NAMED A MANAGING DIRECTOR OF THIS CLOSELY HELD INVESTMENT MANAGEMENT COMPANY MR STARK SAID IN AN INTERVIEW HE PLANS TO SET UP A MODERATELY LEVERAGED TREASURY SECURITIES FUND AT GRANITE HE FORMERLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHEMICAL BANKING CORP'S INVESTMENT BANKING UNIT CHEMICAL SECURITIES INC 9302250158 930225 WHO'S NEWS AETNA LIFE & CASUALTY CO AETNA LIFE & CASUALTY CO HARTFORD CONN JAMES O'KEEFE WAS NAMED TO THE NEW POSITION OF CHIEF EXECUTIVE OFFICER OF THIS INSURANCE COMPANY'S REAL ESTATE INVESTMENT UNIT AETNA REALTY INVESTORS PRIOR TO JOINING AETNA MR O'KEEFE 44 YEARS OLD WAS A MANAGING DIRECTOR IN CHARGE OF REAL ESTATE INVESTMENT BANKING FOR KIDDER PEABODY & CO THE SECURITIES UNIT OF GENERAL ELECTRIC CO 9302250157 930225 VENCOR MAY BUY BACK SHARES LOUISVILLE KY VENCOR INC SAID IT MAY BUY BACK AS MANY AS TWO MILLION OF ITS 179 MILLION SHARES OUTSTANDING AND AS MUCH AS 10 MILLION OF ITS 115 MILLION OF 6 CONVERTIBLE SUBORDINATED NOTES DUE 2002 THE COMPANY SAID IT FINDS THE PRICES ON THE STOCK AND THE NOTES ATTRACTIVE THE HOSPITAL CONCERN SAID MARKET CONDITIONS WILL DETERMINE THE TIMING AND SIZE OF THE TRANSACTION 9302250156 930225 ANADARKO COMPLETES WELL TEST HOUSTON ANADARKO PETROLEUM CORP SAID IT COMPLETED THE TESTING OF A SECOND PRODUCING ZONE OF ITS DISCOVERY WELL IN ALGERIA THE EMK NO 1 WELL'S SECOND ZONE TESTED AT 1750 BARRELS OF OIL A DAY AND 136 MILLION CUBIC FEET OF NATURAL GAS A DAY THROUGH A 3/4INCH OPENING IT IS ON BLOCK 208 IN THE GHADAMES BASIN IN THE SAHARA DESERT THE TEST RESULTS FROM THE FIRST ZONE WERE REPORTED FEB 17 ANADARKO IS THE OPERATOR WITH A 50 WORKING INTEREST OTHER PARTNERS IN THE WELL ARE A UNIT OF LASMO PLC OF THE UK AND A DANISH COMPANY MAERSK OLIE ALGERIET A/S EACH OWNING 25 ANADARKO SAID IT CURRENTLY IS EVALUATING ITS PLANS FOR THE DISCOVERY INCLUDING FURTHER EXPLORATION ON OTHER PARTS OF THE SAME STRUCTURE 9302250155 930225 CARDIOVASCULAR IMAGING SYSTEMS SUNNYVALE CALIF CARDIOVASCULAR IMAGING SYSTEMS INC SAID IT HAS MADE A PUBLIC OFFERING OF ONE MILLION COMMON SHARES AT 6 EACH PROCEEDS FROM THE OFFERING WILL BE USED TO PAY FOR RESEARCH AND DEVELOPMENT COSTS AND FOR GENERAL CORPORATE PURPOSES SAID A SPOKESMAN FOR THE MEDICAL INSTRUMENTS COMPANY THE OFFERING WILL BRING THE TOTAL NUMBER OF COMMON SHARES OUTSTANDING TO 78 MILLION HE SAID 9302250154 930225 WHO'S NEWS WENDY'S INTERNATIONAL INC WENDY'S INTERNATIONAL INC DUBLIN OHIO ERNEST S HAYECK A RETIRED FEDERAL JUDGE WAS NAMED A DIRECTOR OF THIS FASTFOOD CHAIN MR HAYECK 68 YEARS OLD SUCCEEDS LEONARD IMMKE WHO DIED LAST YEAR 9302250153 930225 INTERNATIONAL SWEDISH RETAIL SALES DROP STOCKHOLM SWEDISH RETAIL SALES WERE DOWN 96 IN DECEMBER FROM A YEAR EARLIER NATIONAL STATISTICS AGENCY SCB SAID THE DROP THE LARGEST MONTHLY DECLINE REGISTERED LAST YEAR REFLECTS DECLINES IN ALL SECTORS THE AGENCY SAID SALES OF CONVENIENCE GOODS AND FOOD DROPPED 93 IN THE MONTH WHILE DEPARTMENT STORE SALES DROPPED 47 SALES OF DURABLE GOODS TUMBLED 108 9302250152 930225 INTERNATIONAL BRITISH AEROSPACE'S PRETAX LOSS IN '92 WAS 175 BILLION BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH AEROSPACE PLC REPORTED A PRETAX LOSS OF 12 BILLION 175 BILLION FOR THE YEAR BUT APPEARS TO HAVE PUT MANY MAJOR PROBLEMS BEHIND IT THE LOSS WAS EXPECTED FOLLOWING THE COMPANY'S ANNOUNCEMENT IN SEPTEMBER THAT IT WOULD TAKE A 1 BILLION CHARGE FOR THE REORGANIZATION OF ITS REGIONAL AIRCRAFT UNIT IN 1991 BRITISH AEROSPACE REPORTED A PRETAX LOSS OF 112 MILLION REVENUE SHRANK 5 TO 998 BILLION FROM 1056 BILLION IN 1991 BUT BRITISH AEROSPACE ANNOUNCED A LARGERTHANEXPECTED FINAL PERIOD DIVIDEND OF FOUR PENCE THE 1992 DIVIDEND TOTALED SEVEN PENCE DOWN FROM 25 PENCE IN 1991 THE COMPANY CONTINUED TO GET BATTERED IN ALMOST ALL OF ITS MAJOR DIVISIONS BUT THE COMMERCIAL AIRCRAFT SECTOR WAS THE WORST WHERE MASSIVE LOSSES FORCED NOT ONLY THE EXPENSIVE RESTRUCTURING BUT LED TO A PRETAX LOSS OF 337 MILLION THE MOTOR VEHICLES UNIT WHICH MAKES ROVER CARS CONTINUED TO POST A PRETAX LOSS ALTHOUGH IT NARROWED TO 49 MILLION FROM 52 MILLION A YEAR EARLER DESPITE THE FLOOD OF RED INK ANALYSTS FOR THE FIRST TIME IN MORE THAN A YEAR BEGAN TO TALK WITH CAUTIOUS OPTIMISM ABOUT THE TROUBLED CONGLOMERATE EVER SINCE A 432 MILLION RIGHTS ISSUE FLOPPED IN LATE 1991 THREE CONCERNS HAVE WEIGHED HEAVILY ON INVESTORS THE FUTURE OF THE COMMERCIAL AIRCRAFT UNIT THE RENEWAL OF A MAJOR ARMS CONTRACT WITH SAUDI ARABIA AND THE LAUNCH OF A EUROPEAN FIGHTER AIRCRAFT ONE BY ONE IN THE PAST SIX MONTHS THOSE PROBLEMS HAVE BEEN RESOLVED IN SEPTEMBER BRITISH AEROSPACE ANNOUNCED PLANS TO RESTRUCTURE ITS COMMERCIAL AIRCRAFT UNIT THEN IN DECEMBER GERMANY AGREED TO GO AHEAD WITH BUILDING A SCALEDDOWN VERSION OF THE EUROPEAN FIGHTER IN JANUARY BRITISH PRIME MINISTER JOHN MAJOR ANNOUNCED A RENEWAL OF THE ARMS ACCORD WITH SAUDI ARABIA UNDER WHICH BRITISH AEROSPACE WILL SUPPLY 48 TORNADO FIGHTER AIRCRAFT ALSO IN JANUARY TAIWAN AEROSPACE CORP AGREED TO PUT THE UK COMPANY'S REGIONAL AIRCRAFT UNIT INTO A 5050 JOINT VENTURE IN EXCHANGE FOR A 120 MILLION PAYMENT BRITISH AEROSPACE SHARES JUMPED 52 ON THE REPORT CLOSING ON THE LONDON EXCHANGE AT 265 PENCE 386 UP 13 PENCE 9302250151 930225 SPORTS/LEISURE SELLS SUBSIDIARY MIAMI SPORTS/LEISURE INC SAID IT SOLD THE ASSETS OF ITS CLASSIC GOLF OF AMERICA SUBSIDIARY BACK TO BEN HOGAN CO OF RICHMOND VA A PRICE WASN'T DISCLOSED SPORTS/LEISURE PURCHASED THE GOLF APPAREL COMPANY FROM BEN HOGAN IN MARCH 1992 SPORTS/LEISURE SOLD THE ASSETS OF THE GOLF APPAREL DIVISION BECAUSE IT WANTS TO FOCUS ON ITS SOFTOUCH SUBSIDIARY OF WOMEN'S FITNESS APPAREL SAID NORMAN FIXEL CHIEF EXECUTIVE OFFICER OF SPORTS/LEISURE AS A RESULT OF THE SALE SPORTS/LEISURE AN APPAREL COMPANY SAID IT EXPECTS TO POST A 400000 LOSS FOR 1992 IN THE THIRD QUARTER SPORTS/LEISURE HAD A LOSS OF 938072 ON 43 MILLION OF REVENUE 9302250150 930225 GE FINANCE UNIT CHANGES NAME STAMFORD CONN GE FINANCIAL SERVICES A UNIT OF GENERAL ELECTRIC CO SAID IT HAS CHANGED ITS NAME TO GE CAPITAL SERVICES THE UNIT IS THE HOLDING COMPANY FOR GE CAPITAL CORP KIDDER PEABODY & CO AND EMPLOYER REINSURANCE CORP FOR 1992 IT HAD EARNINGS OF 15 BILLION ON REVENUE OF MORE THAN 18 BILLION GENERAL ELECTRIC HAD EARNINGS OF 473 BILLION ON REVENUE OF 622 BILLION 9302250149 930225 WESTINGHOUSE UNIT IS TO PAY AN AWARD IN ANUHCO LOAN SUIT OVERLAND PARK KAN ANUHCO INC SAID A STATE COURT JURY RULED THAT WESTINGHOUSE CREDIT CORP SHOULD PAY THE TRUCKING COMPANY 70 MILLION IN DAMAGES AFTER FINDING THAT IT WRONGFULLY FAILED TO PROVIDE FINANCING UNDER A 1988 LOAN COMMITMENT ANUHCO WAS FORMERLY KNOWN AS AMERICAN CARRIERS INC WHICH ENTERED BANKRUPTCY PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN 1988 AFTER ITS BANK CREDIT WAS CANCELED AND IT COULDN'T SECURE ALTERNATIVE FINANCING FROM WESTINGHOUSE THE COMPANY EMERGED FROM BANKRUPTCY IN 1991 AFTER A FINANCIAL RESTRUCTURING THE SUIT AGAINST WESTINGHOUSE CREDIT A UNIT OF WESTINGHOUSE ELECTRIC CORP WAS FILED IN JUNE 1990 UNDER ANUHCO'S REORGANIZATION PLAN THE VERDICT DAMAGES AND CERTAIN RESIDUAL ASSETS FROM ITS NOWINACTIVE AFS UNIT WOULD NET ANUHCO BETWEEN 17 MILLION AND 23 MILLION ANUHCO'S DISCLOSURE WAS MADE LATE TUESDAY EVENING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S SHARES CLOSED AT 4875 UP 1063 IN A NEWS RELEASE WESTINGHOUSE CREDIT BASED IN PITTSBURGH SAID THE VERDICT WAS NOT SUPPORTED BY THE EVIDENCE PRESENTED IN THE CASE AND IS CONTRARY TO THE RULE OF LAW WESTINGHOUSE SAID IT PLANS TO APPEAL THE VERDICT AT THE EARLIEST OPPORTUNITY WESTINGHOUSE CREDIT'S RELATIONS WITH BORROWERS HAVE BEEN A SOURCE OF PROBLEMS IN THE PAST LAST YEAR THE UNIT WAS SUED BY NEW ORLEANS DEVELOPERS ROBERT AND EDMOND TONTI WHO SAID IT VIOLATED A PARTNERSHIP ARRANGEMENT BY CALLING LOANS ON PROPERTIES THAT THE TONTIS SAID THEY BOUGHT AT THE CREDIT UNIT'S REQUEST WESTINGHOUSE SETTLED THE SUIT LAST NOVEMBER BY AGREEING TO RESTRUCTURE THE LOANS ALLOWING THE TONTIS TO REFINANCE OR SELL ASSETS THE TROUBLED CREDIT UNIT HAS BEEN THE SOURCE OF MORE THAN 5 BILLION IN PRETAX WRITEDOWNS OVER THE PAST TWO YEARS IT IS ONE OF SEVERAL OPERATIONS THAT WESTINGHOUSE HAS SAID IT WILL SHED TO RAISE CASH TO PAY DOWN BANK DEBT 9302250148 930225 ECONOMY LEADERS DRAW DEMOCRATS' LINE ON DEFICIT PLAN CLINTON GOAL OF REDUCTION TOTALING 325 BILLION IS PUSHED AS MINIMUM BY DAVID ROGERS AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON LEADING DEMOCRATS SAID PRESIDENT CLINTON'S FOURYEAR DEFICITREDUCTION GOAL OF 325 BILLION SHOULD BE A MINIMUM TARGET FOR CONGRESS AND THAT ANY AMENDMENTS THAT INCREASE RED INK MUST BE ACCOMPANIED BY OFFSETTING REVENUES OR SAVINGS HOUSE BUDGET COMMITTEE CHAIRMAN MARTIN SABO D MINN PREDICTED HIS PANEL WILL GO BEYOND THE SPENDING REDUCTIONS IN MR CLINTON'S ECONOMIC PLAN WHEN IT DRAFTS A BUDGET RESOLUTION EARLY NEXT MONTH AND IN AN IMPLICIT CHALLENGE TO REPUBLICAN CRITICS OKLAHOMA SEN DAVID BOREN D OKLA SAID THAT ANYONE UNWILLING TO MATCH THE DEFICIT TARGETS ISN'T FIT TO STAY IN CONGRESS WITH LESS FLOURISH MR BOREN'S FELLOW DEMOCRATS ON THE SENATE FINANCE COMMITTEE INCLUDING MAJORITY LEADER GEORGE MITCHELL AND NEW JERSEY SEN BILL BRADLEY SET DOWN THE SAME MARKER FOR TAX WRITERS ALTHOUGH THE DEMOCRATS' IMMEDIATE GOAL WAS TO PUT PRESSURE ON REPUBLICANS TO ADDRESS THE NEED FOR TAX INCREASES THEIR DEFICIT STANDARD ALSO WILL MAKE IT HARDER FOR THEIR FELLOW PARTY MEMBERS TO HELP SPECIAL INTERESTS ESCAPE THE PRESIDENT'S REVENUE PROPOSALS BEWARE THE LOBBYISTS I KNOW THE LOBBYISTS ARE GEARING UP SAID TREASURY SECRETARY LLOYD BENTSEN WHO APPEALED FOR SUPPORT FROM THE FINANCE PANEL HE ONCE LED YOU FELLOWS HAVE BEEN AROUND A WHILE YOU SURE KNOW THE DIFFERENCE BETWEEN GRASS ROOTS AND ASTROTURF THE TOUGH RHETORIC BELIES CONTINUED CONCERN AMONG DEMOCRATS THAT MR CLINTON'S OWN DEFICIT CUTS WON'T PROVE CREDIBLE OR LONGLASTING IF ACTION ISN'T TAKEN ON HEALTHCARE REFORM MR MITCHELL IS PRESSING OPENLY FOR THE HEALTH PACKAGE TO BE WRAPPED TOGETHER WITH THE SAVINGS AND TAX PROVISIONS ALREADY OUTLINED BY THE PRESIDENT INTO A SINGLE RECONCILIATION BILL IRA MAGAZINER A TOP WHITE HOUSE DOMESTIC POLICY AIDE HELPING TO SHAPE THE HEALTH PLAN MET YESTERDAY WITH HOUSE MAJORITY LEADER RICHARD GEPHARDT MR BENTSEN REFUSED TO BE DRAWN INTO ANY DISCUSSION REGARDING THE LIKELIHOOD OF FURTHER NEW TAXES TO PAY FOR THE ADMINISTRATION'S HEALTHCARE PACKAGE BUT HE SAID THAT AN INCOME OR MEANS TEST ON MEDICARE BENEFITS COULD YET BE RECOMMENDED TO HELP FINANCE THE PLAN WHICH IS DUE IN MAY SEPARATELY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WARNED THE HOUSE BUDGET COMMITTEE THAT IT WAS EXCEPTIONALLY OMINOUS THAT BEYOND THE FOURYEAR SPAN OF MR CLINTON'S BUDGET PLAN THE DEFICIT WOULD START TO WIDEN AGAIN EVEN AFTER THE CUTS PROMISED BY THE PRESIDENT MR GREENSPAN SAID SUCH PROJECTIONS DEMONSTRATE WHY IT'S IMPORTANT THAT A PLAN TO CONTROL HEALTHCARE COSTS BE IMPLEMENTED QUICKLY I AM ACUTELY AWARE OF HOW DIFFICULT THIS WHOLE PROCESS IS GOING TO BE MR GREENSPAN SAID OF HEALTHCARE REFORM BUT IT'S CRUCIAL MR GREENSPAN WHO WAS APPEARING ON CAPITOL HILL FOR THE THIRD TIME IN LESS THAN A WEEK WAS CAREFUL NOT TO COMMENT ON THE SPECIFICS OF THE CLINTON PLAN SAYING IT WOULDN'T BE APPROPRIATE FOR THE CENTRAL BANK TO GET MIXED UP IN POLITICS BUT HE AGAIN PRAISED THE ADMINISTRATION'S EFFORTS TO SET THE PROCESS IN MOTION FOR DEFICIT REDUCTION HE ADDED THAT HE COULDN'T THINK OF ANOTHER SUCH ATTEMPT AS FAR BACK AS I CAN REMEMBER MR GREENSPAN REITERATED HIS POSITION THAT SPENDING CUTS ARE PREFERABLE TO TAX INCREASES AS A WAY TO PARE THE DEFICIT MODERATE AND CONSERVATIVE DEMOCRATS IN THE HOUSE COMMITTEE MEANWHILE SPEAK OF ADDING AT LEAST 5 BILLION IN DEFICIT REDUCTIONS TO MR CLINTON'S PLAN UNDER PRESSURE FROM THE LEADERSHIP MR SABO IS HOPING TO BRING THE BUDGET RESOLUTION TO THE HOUSE FLOOR BY MIDMARCH AND IF AGREEMENT CAN BE QUICKLY REACHED WITH THE SENATE BY APRIL THE MINNESOTA DEMOCRAT SAID IT WOULD BE REASONABLE TO ORDER COMMITTEES TO PRODUCE TAX AND SPENDING LEGISLATION TO CARRY OUT THE DEFICT PLAN BY EARLY JUNE CONSERVATIVE DEMOCRATS LIKE MR BOREN WANT THE SAME ACCELERATED SCHEDULE BUT THAT PACE HOWEVER ATTRACTIVE POLITICALLY MAY YET PROVE UNREALISTIC AND IS AT ODDS WITH MR MITCHELL'S HOPES OF MELDING THE BUDGET PLAN WITH HEALTH CARE LATE IN THE SUMMER ONE OPTION WOULD BE TO USE THE BUDGET RESOLUTION TO ORDER WHAT WOULD BE IN EFFECT TWO RECONCILIATION BILLS THE FIRST IMPLEMENTING THE INITIAL 325 BILLION FOURYEAR DEFICIT REDUCTION PLAN AND THE SECOND ORDERING HEALTH REFORMS FINANCED BY ADDITIONAL SAVINGS AND NEW TAXES LATER IN THE SUMMER BUT THAT WOULDN'T SQUARE WITH THE SENATE DEMOCRATIC LEADERSHIP'S DESIRE FOR A SINGLE UPANDDOWN VOTE ON THE HEALTH AND BUDGET ISSUES TOGETHER AND THE PROCEDURAL DEBATE WAS STILL UNRESOLVED AFTER A MEETING WITH HOUSE DEMOCRATS YESTERDAY THE WHITE HOUSE BUDGET OFFICE IN A MEMO TO AGENCY HEADS SAID THE DETAILED CLINTON BUDGET IS NOW SCHEDULED FOR RELEASE APRIL 5 INSTEAD OF THE ORIGINAL MARCH 23 TARGET BUT THE CONGRESSIONAL APPROPRIATIONS COMMITTEES WILL GET DETAILED ACCOUNTBYACCOUNT DATA ON MARCH 25 MR BENTSEN'S TESTIMONY YESTERDAY MARKED HIS FIRST PUBLIC APPEARANCE BEFORE HIS OLD COMMITTEE SINCE THE ADMINISTRATION'S ECONOMIC PLAN WAS ANNOUNCED HE SALTED HIS REMARKS WITH REMINDERS THAT THE ADMINISTRATION IS SUPPORTING RESEARCH SPENDING AND HOUSING TAX CREDITS IMPORTANT TO HIS FORMER SENATE COLLEAGUES THE SECRETARY SEEMED UNPREPARED ON OCCASION FOR THE DETAILED QUESTIONING HE FACED ON SPECIFIC PROVISIONS REGARDING THE ADMINISTRATION'S PROPOSED CAPITAL GAINS TAX BREAK FOR INVESTORS IN SMALL BUSINESSES AND ITS ENERGY TAX AND THOUGH TREASURY HAS PROMISED A MORE COMPLETE ACCOUNT THIS WEEK THE HEARING UNDERSCORED THAT MANY DECISIONS SUCH AS WHAT STAGE IN THE PRODUCTION PROCESS THE ENERGY TAX WOULD BE IMPOSED ARE STILL UNRESOLVED 9302250147 930225 INTERNATIONAL MULRONEY QUITS AS CANADIAN PRIME MINISTER RESIGNATION LIKELY TO BOOST HIS PARTY IN ELECTIONS NAFTA PUSH STILL PLANNED BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADIAN PRIME MINISTER BRIAN MULRONEY IN A MOVE THAT IS EXPECTED TO BOOST HIS PROGRESSIVE CONSERVATIVE PARTY'S CHANCE FOR REELECTION RESIGNED AFTER 8 1/2 YEARS AS GOVERNMENT LEADER MR MULRONEY'S ANNOUNCEMENT FOLLOWED MONTHS OF SPECULATION OVER WHETHER HE WOULD RESIGN OR ATTEMPT A COMEFROMBEHIND BID TO WIN A THIRD TERM FOR HIS CONSERVATIVE GOVERNMENT THE PRIME MINISTER 53 YEARS OLD SAID HE WOULD STEP DOWN AS LEADER AS SOON AS THE CONSERVATIVE PARTY PICKS HIS SUCCESSOR AT A CONVENTION EXPECTED IN JUNE IN THE PARLIAMENTARY SYSTEM A NEW PRIME MINISTER CAN TAKE OFFICE WITHOUT AN ELECTION PROVIDED HE OR SHE HAS SUFFICIENT SUPPORT IN PARLIAMENT TO GOVERN IN HIS REMAINING MONTHS IN OFFICE MR MULRONEY INTENDS TO PRESS AHEAD WITH HIS LEGISLATIVE AGENDA INCLUDING PASSAGE OF A BILL TO IMPLEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT SIGNED IN DECEMBER BY THE US CANADA AND MEXICO THE NAFTA BILL IS EXPECTED TO BE APPROVED BY PARLIAMENT BY THIS SUMMER MR MULRONEY'S DEPARTURE MAKES THE CONSERVATIVES A REALISTIC CONTENDER IN THE NEXT ELECTION SAID LORNE BOZINOFF GALLUP CANADA VICE PRESIDENT HOWEVER THE NEW CONSERVATIVE LEADER WILL HAVE ONLY A COUPLE OF MONTHS TO PUT A NEW IMPRINT ON THE GOVERNMENT BECAUSE AN ELECTION HAS TO BE HELD BY NOVEMBER THEY WOULDN'T HAVE BEEN COMPETITIVE WITH MULRONEY AND I THINK HE KNOWS THAT HE SAID MR MULRONEY'S GALLUP POLL APPROVAL RATING IS ONLY 17 LOWER THAN RICHARD NIXON'S AT THE HEIGHT OF THE WATERGATE SCANDAL AND BELOW THAT OF LYNDON JOHNSON DURING THE VIETNAM WAR THE CONSERVATIVE PARTY FARES ONLY A LITTLE BETTER IN THE POLLS THAN ITS LEADER IN THE LATEST GALLUP POLL THE CONSERVATIVES HAD THE SUPPORT OF 21 OF DECIDED VOTERS IN HIS TWO TERMS MR MULRONEY'S GOVERNMENT IMPLEMENTED WHAT CANADIANS VIEWED AS RADICAL CHANGES THESE INCLUDED NEGOTIATING THE FREE TRADE AGREEMENT WITH THE US THAT IS TO BE BROADENED TO INCLUDE MEXICO THE MULRONEY GOVERNMENT ALSO INTRODUCED TWO YEARS AGO A BITTERLY OPPOSED 7 VALUEADDED TAX ON GOODS AND SERVICES IT ALSO DEREGULATED MANY INDUSTRIES INCLUDING AIRLINES AND SOLD OFF NUMEROUS GOVERNMENT ENTERPRISES INCLUDING AIR CANADA MR MULRONEY'S SETBACKS WERE HIS FAILURE TO ACHIEVE RATIFICATION FOR TWO SEPARATE CONSTITUTIONAL PLANS TO DEAL WITH THE GRIEVANCES OF QUEBEC NATIVE GROUPS AND OTHERS AS A POLITICIAN FROM QUEBEC HE HAD HOPED TO SETTLE QUEBEC'S DEMANDS FOR MORE AUTONOMY AND FOR RECOGNITION AS A DISTINCT SOCIETY WITHIN CANADA THE LIBERALS IF ELECTED HAVE PLEDGED TO SCRAP THE VALUEADDED TAX AND RENEGOTIATE THE NORTH AMERICAN TRADE AGREEMENT THEY HAVE ALSO SAID THEY WOULD ABANDON THE CONSERVATIVE GOVERNMENT'S GOAL OF ZERO INFLATION THE LIBERALS LED BY JEAN CHRETIEN BLAME THE GOVERNMENT'S ANTIINFLATION PROGRAM FOR CANADA'S COMPARATIVELY HIGH UNEMPLOYMENT CURRENTLY AT 11 OF THE WORK FORCE THE LIBERAL PARTY WHICH HAS GOVERNED CANADA FOR MOST OF THIS CENTURY HAD THE BACKING OF 49 IN THE LATEST GALLUP POLL AND THE LEFTWING NEW DEMOCRATIC PARTY 16 OTHER PARTIES ACCOUNTED FOR THE REMAINDER MR MULRONEY HASN'T GROOMED ANY OBVIOUS SUCCESSOR THE CONTEST FOR THE LEADERSHIP IS EXPECTED TO BE WIDE OPEN SAID MICHAEL BLISS A UNIVERSITY OF TORONTO HISTORIAN POSSIBLE CANDIDATES INCLUDE TRADE MINISTER MICHAEL WILSON DEFENSE MINISTER KIM CAMPBELL ENVIRONMENT MINISTER JEAN CHAREST AND COMMUNICATIONS MINISTER PERRIN BEATTY NONE OF THE POSSIBLE CANDIDATES HAS INDICATED ANY POLICY DIFFERENCE WITH MR MULRONEY MANY ANALYSTS CONTEND THAT IF THE LIBERALS WERE ELECTED THEY WOULDN'T GOVERN MUCH DIFFERENTLY FROM THE CONSERVATIVES MR CHRETIEN IS A VERY EXPERIENCED POLITICIAN SAID DAVID MCLEAN CHAIRMAN OF THE CANADIAN CHAMBER OF COMMERCE HE KNOWS THE IMPORTANCE OF POLITICAL STABILITY IF HE DOES GET ELECTED I DON'T THINK HE WILL DO ANYTHING FOOLISH BUT IN MEXICO WHICH HAS THE MOST TO GAIN IF NAFTA IS COMPLETED MR MULRONEY'S RESIGNATION SPARKED RENEWED CONCERN ABOUT THE RESOLVE OF THE US AND CANADA TO FINISH THE MARKETBUILDING TRADE PACT IT'S A NEGATIVE BECAUSE MULRONEY WAS SO CLOSELY ASSOCIATED WITH THE AGREEMENT AND IN SUCH A GOOD POSITION TO PRESSURE THE US TO GET IT DONE SAID MEXICAN ECONOMIST ROGELIO RAMIREZ DE LA O MR MULRONEY'S RESIGNATION HAD ONLY A LIMITED IMPACT ON FINANCIAL MARKETS THE TORONTO STOCK EXCHANGE'S 300SHARE COMPOSITE INDEX CLOSED AT 346575 UP 1297 POINTS OR 04 THE CANADIAN DOLLAR AFTER FALLING ALMOST A CENT IN OVERSEAS TRADING RECOVERED PART OF ITS LOSS LATER YESTERDAY TO CLOSE AT 7940 US CENTS OFF FROM 7978 CENTS TUESDAY MR MULRONEY SAID AN ADVANCING CANADIAN ECONOMY SHOULD HELP THE CONSERVATIVES AFTER A VERY DIFFICULT PERIOD THE ECONOMY IS RECOVERING STRONGLY AND THE FORECASTS ALL INDICATE QUITE ROBUST GROWTH AND DURABLE PROSPERITY OVER THE NEXT YEARS MOST FORECASTS ARE FOR ECONOMIC GROWTH OF 25 TO 3 THIS YEAR DARRELL BRICKER VICE PRESIDENT OF ANGUS REID ASSOCIATES INC AN OPINION RESEARCH COMPANY SAID THE ECONOMIC PICKUP WON'T MEAN MUCH IN THIS AUTUMN'S ELECTION IF IT DOESN'T REDUCE THE UNEMPLOYMENT RATE PEOPLE DON'T THINK YOU CAN HAVE A JOBLESS RECOVERY HE SAID MR MULRONEY HAS SUCCEEDED IN KEEPING THE CONSERVATIVE PARTY UNITED DESPITE ITS LOW STANDING IN THE POLLS HE HAS BEEN A VERY STRONG LEADER SAID FELIX HOLTMANN A CONSERVATIVE MEMBER OF PARLIAMENT MR MULRONEY ALSO IS LEAVING HIS SUCCESSOR A WELLFUNDED POLITICAL ORGANIZATION HE SAID YESTERDAY THAT THE PARTY HAS AN EXTREMELY SIGNIFICANT FINANCIAL SURPLUS BUT DIDN'T DISCLOSE ANY FIGURES 9302250146 930225 NEIMAN MARCUS POSTS A 54 RISE IN EARNINGS FOR FISCAL 2ND QUARTER CHESTNUT HILL MASS NEIMAN MARCUS GROUP INC CITING STRONG HOLIDAY SALES REPORTED THAT EARNINGS ROSE 54 TO 176 MILLION OR 27 CENTS A SHARE FOR THE SECOND QUARTER ENDED JAN 30 IN THE YEARAGO SECOND QUARTER NEIMAN EARNED 114 MILLION OR 12 CENTS A SHARE REVENUE ROSE 14 TO 6172 MILLION FROM 5412 MILLION A YEAR EARLIER THE SPECIALTY RETAILER 65OWNED BY GENERAL CINEMA CORP SAID THAT HISTORICALLY IT HAS HAD NET LOSSES IN THE SECOND HALF OF ITS FISCAL YEAR AND EXPECTS THE SAME THIS YEAR IT ADDED HOWEVER THAT SECONDHALF LOSSES ARE EXPECTED TO BE AT A REDUCED RATE FROM THE LOSS OF 34 CENTS A SHARE IT HAD IN THE SECOND HALF OF FISCAL 1992 FOR THE FISCAL 1992 THIRD QUARTER NEIMAN POSTED NET INCOME OF 9 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 4172 MILLION FOR THE 1992 FOURTH QUARTER IT HAD A LOSS OF 68 MILLION OR 39 CENTS A SHARE ON REVENUE OF 4158 MILLION NEIMAN SAID ITS SAMESTORE SALES ROSE 91 DURING THE SECOND QUARTER DESPITE A DISAPPOINTING PERFORMANCE BY ITS CONTEMPO CASUALS UNIT WHICH HAS YET TO GENERATE ONGOING POSITIVE COMPARABLE STORE SALES NEIMAN ADDED THAT CONTEMPO HAD A SMALL LOSS IN THE QUARTER PRIOR TO A LOSS ASSOCIATED WITH PASTILLE A NEW RETAIL CONCEPT BEING TESTED BY THE DIVISION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY NEIMAN CLOSED AT 1525 A SHARE DOWN 1125 9302250145 930225 INTERNATIONAL COMBINATION OF RECESSION STRONG DECEMBER CUT WESTERN EUROPE CAR SALES 24 IN JANUARY BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS CARS SALES IN WESTERN EUROPE PLUNGED 24 IN JANUARY FROM A YEAR EARLIER WHILE SOME OF THE DROP WAS BECAUSE PEOPLE RUSHED OUT TO GET YEAREND BARGAINS IN DECEMBER IT'S ALSO EVIDENCE OF EUROPE'S DEEPENING RECESSION SALES FELL AT ALL OF THE LEADING MANUFACTURERS AND IN NEARLY ALL OF WESTERN EUROPE'S MAJOR CAR MARKETS THE TOTAL OF 959308 NEWCAR REGISTRATIONS WAS THE LOWEST FOR A JANUARY IN SIX YEARS INDUSTRY ANALYSTS SAID JANUARY 1992 SALES AMOUNTED TO 1259589 CARS THE FIGURES REFLECT ACTUAL AND ESTIMATED NEWCAR REGISTRATIONS IN 17 WEST EUROPEAN MARKETS AND WERE COMPILED BY ANALYSE AUTO AN ANTWERP BELGIUM CONSULTING FIRM VOLKSWAGEN AG THE EUROPEAN MARKET LEADER POSTED A 26 SALES DECLINE IN EUROPE THE COMPANY DISCLOSED YESTERDAY THAT ITS WORLDWIDE JANUARY SALES WERE OFF 16 TO ABOUT 235000 CARS FROM THE YEAREARLIER 281000 VW SALES IN GERMANY LAST MONTH PLUNGED 33 TO 68000 UNITS FROM THE YEAREARLIER 101000 NONETHELESS A SPOKESMAN SAID VW EXPECTS SALES TO TURN UP SOMEWHAT IN MARCH APRIL AND MAY THE JANUARY SWOON WAS WIDELY EXPECTED AFTER CAR SALES SOARED A SURPRISING 145 IN DECEMBER INDUSTRY ANALYSTS ATTRIBUTED THE DECEMBER SURGE TO A COMBINATION OF PRICECUTTING TO UNLOAD MODELS BY YEAR END AND A PUSH BY CUSTOMERS IN SOME COUNTRIES TO BEAT EXPECTED JANUARY TAX INCREASES SUCH INDUCEMENTS ENCOURAGED MANY POTENTIAL JANUARY CAR BUYERS TO ACCELERATE THEIR PURCHASES THAT EFFECT WASN'T ENOUGH TO ACCOUNT FOR ALL OF THE JANUARY DECLINE HOWEVER SUGGESTS VIC HEYLEN MANAGING DIRECTOR OF ANALYSE AUTO HE SAYS DECEMBER AND JANUARY SALES TOGETHER WERE DOWN 82 FROM THE YEAREARLIER PERIOD REFLECTING THE MARKET'S OVERALL SLOWING AUTO MAKERS HAVE BEEN BRACING FOR SHARPLY LOWER SALES THIS YEAR AFTER 1992'S NEARRECORD 134 MILLION DELIVERIES VW AND GENERAL MOTORS CORP'S EUROPEAN UNIT ARE FORECASTING A MARKET CONTRACTION OF 8 TO 10 EUROPEWIDE OTHERS ARE LESS PESSIMISTIC PSA PEUGEOT CITROEN SEES A SHRINKAGE OF ABOUT 5 GERMANY EUROPE'S LARGEST CAR MARKET IS EXPECTED TO LEAD THE WAY VW EARLIER THIS WEEK PREDICTED A 20 DECLINE IN GERMAN SALES THIS YEAR FROM LAST YEAR'S 39 MILLION DELIVERIES IN JANUARY NEWCAR REGISTRATIONS DECLINED 28 FROM A YEAR EARLIER SALES IN FRANCE DROPPED 37 IN ITALY 14 AND IN SPAIN 49 ONLY BRITAIN WHICH WENT INTO A CARSALES RECESSION WHILE THE REST OF EUROPE WAS BOOMING POSTED A 73 RISE IN SALES PEUGEOT'S EUROPEAN SALES WERE DOWN 28 IN JANUARY AND RENAULT'S 23 GM EUROPE'S DELIVERIES DROPPED 24 FORD MOTOR CO'S EUROPEAN SALES 28 AND FIAT SPA'S SALES 17 9302250143 930225 LETTERS TO THE EDITOR JOURNALISTS FAUX NBC'S CREDIBILITY CRASHED RECENTLY THE PRESS AND NBC'S TROUBLES REVIEW & OUTLOOK TALE OF THE TAPE HOW GM ONEUPPED AN EMBARRASSED NBC ON STAGED NEWS EVENT PAGE ONE FEB 11 BUT IT HAD LITTLE TO DO WITH THE RELATIONSHIP BETWEEN JOURNALISTS AND THE CONSUMER MOVEMENT WHAT WE ARE SEEING HERE IS THE INEVITABLE COLLAPSE OF ANY KIND OF JOURNALISM IN BROADCAST NEWS FOR A LONG TIME TELEVISION NETWORKS HAVE BEEN MOVING FURTHER AND FURTHER AWAY FROM JOURNALISM IN THEIR RELENTLESS PURSUIT OF RATINGS PROFITS AND LOW COSTS THE DEFINITIVE PROOF OF THIS WAS IN THE CONCLUSION TO YOUR COVERAGE OF THE NBC/GM ACTION THE ACTIONS OF THREE OF THE SHOW'S EMPLOYEES MR ROBERT READ SENIOR PRODUCER DAVID RUMMEL AND EXECUTIVE PRODUCER JEFF DIAMOND ARE ALL UNDER PARTICULARLY INTENSE SCRUTINY NOTE THE ABSENCE OF MICHELE GILLEN THE SOCALLED CORRESPONDENT ON THE PIECE HOW IS IT THAT THE JOURNALIST WHO IS REPORTING THE STORY BEARS NO RESPONSIBILITY FOR THE FINAL PRODUCT THE ANSWER IS ALAS QUITE SIMPLE TV NEWS IS TODAY INCREASINGLY PEOPLED WITH JOURNALISTS WHO ARE OFTEN LITTLE MORE THAN ACTORS PLAYING THE ROLE OF JOURNALIST THEY APPEAR ONLY AT CONVENIENT MOMENTS TO BE SHOT INTO A SEQUENCE OR TO NARRATE A SCRIPT THEY GENERALLY DO LITTLE ACTUAL REPORTING IF ANY AT ALL THEY ARE MERE TALKING HEADS PRESENTED ONLY AS JOURNALISTS FOR PUBLIC CONSUMPTION THEY ARE AS MUCH JOURNALISTS AS COLOMBO IS A DETECTIVE THE RESULT IS A COMPLETE ABNEGATION OF JOURNALISTIC RESPONSIBILITY THE WORK THAT APPEARS ON THE SCREEN IS NO ONE'S IN PARTICULAR THERE IS NO RELATIONSHIP BETWEEN THE JOURNALIST AND ACTUAL AUTHORSHIP AS HL MENCKEN MIGHT HAVE PUT IT IT SOOTHES AND CARESSES THE SOUL TO WITNESS THE FATCAT DIM BULBS OF GIANT NBC BESTED BY THE FATCAT DIM BULBS OF GIANT GENERAL MOTORS THAT ONE CAME OUT ON TOP IN THIS INSTANCE DOESN'T MEAN THAT EITHER HAS LEARNED ENOUGH TO CHANGE A LONGSTANDING CONSTANT ONE MAY STILL CONFIDENTLY COUNT ON A SUPREME CONTEMPT FOR CONSUMER INTELLIGENCE IN THEIR WILLINGNESS TO STOP AT NOTHING THEY THINK THEY CAN GET BY WITH IF IT HOLDS PROMISE OF A GREATER PROFIT 9302250142 930225 BUSINESS BRIEFS REAL ESTATE INVESTMENT TRUST OF CALIFORNIA ACQUIRED THE TELEGRAPH CANYON VILLAS APARTMENTS IN SAN DIEGO FOR 112 MILLION A UNIT OF HUGHES AIRCRAFT CO WON A 3332 MILLION THREEYEAR CONTRACT FROM THE US DEPARTMENT OF DEFENSE TO PRODUCE 849 MEDIUMRANGE AIRTOAIR MISSILES AMERICAN TELEPHONE & TELEGRAPH CO SIGNED A 100 MILLION CONTRACT WITH WORLDSPAN TRAVEL INFORMATION SERVICES FOR A DATA NETWORK SERVICE MEDICIS PHARMACEUTICAL CORP ACQUIRED A 75 INTEREST IN GENETIC MEDISYN CORP IN EXCHANGE FOR 13 MILLION SHARES OF MEDICIS CLASS A COMMON STOCK METROPOLITAN FINANCIAL CORP SIGNED A LETTER OF INTENT TO ACQUIRE EUREKA SAVINGS BANK FOR 21 MILLION SPINNAKER SOFTWARE CORP SIGNED A LETTER OF INTENT TO BUY POWER UP SOFTWARE CORP FOR AN UNDISCLOSED AMOUNT OF CASH AND WARRANTS TO PURCHASE SPINNAKER STOCK 9302250141 930225 LEISURE & ARTS FILM MIDDLECLASS MAN DRIVEN BERSERK BY JULIE SALAMON I'M THE BAD GUY SAYS AN ORDINARY MAN DRIVEN MAD BY THE CHAOS OF CONTEMPORARY LIFE HOW DID THAT HAPPEN THE MAN IS THE MAIN CHARACTER IN A NEW MOVIE CALLED FALLING DOWN AND HIS QUESTION SHOULD BE A POIGNANT ONE HE'S A DEFENSE WORKER A WHITECOLLAR WORKER WHO RECENTLY LOST HIS JOB HE'S A LOVING FATHER WHOSE WIFE HAS LEFT HIM HE IS IN OTHER WORDS THE FORGOTTEN CITIZEN THE MIDDLECLASS WHITE MAN WHOSE TROUBLES ARE OF NO SPECIAL INTEREST BECAUSE HE BELONGS TO NO SPECIALINTEREST GROUP HE WASN'T RAISED TO BE DISENFRANCHISED SO WHEN HE FEELS THAT HE HAS BEEN TREATED UNFAIRLY HE CRACKS SINCE HE'S HELPLESS TO ADDRESS WHAT'S REALLY WRONG WITH HIM NO JOB NO FAMILY HE BEGINS TO STRIKE BACK AT THE MORE IMMEDIATE INJUSTICES HE FEELS ARE ASSAULTING HIM THESE RANGE FROM BEING PHYSICALLY ATTACKED BY PUNKS TO BEING OVERCHARGED FOR A CAN OF SODA THE FILMMAKERS AREN'T OUT TO MAKE A CRISP ACTION FANTASY LIKE THE VIGILANTE MOVIES OF THE 1970S REVENGE PICTURES LIKE DIRTY HARRY AND DEATH WISH THEIR DISAFFECTED MAN HAS NO SPECIFIC ENEMY OR AT LEAST NOT ONE THAT HE ACKNOWLEDGES MODERN LIFE IS HIS ENEMY THIS REALIZATION HITS HIM ONE DAY AND HE BEGINS TO ACT ON IT SPONTANEOUSLY HE'S AN EXISTENTIAL VIGILANTE THE PICTURE WORKS BETTER IN THEORY THAN IN EXECUTION DESPITE SMART SNEAKY PERFORMANCES BY MICHAEL DOUGLAS AS THE MAN WHO LOSES IT HE'S NEVER GIVEN A NAME AND ROBERT DUVALL AS THE DETECTIVE WHO TRACKS HIM DOWN SCREENWRITER EBBE ROE SMITH UNDERCUTS HIS OWN BLACK HUMOR WITH TOO MUCH BLUNT EXPOSITION DIRECTOR JOEL SCHUMACHER WHO SPECIALIZES IN THE SUPERNATURAL THE LOST BOYS FLATLINERS AND THE SENTIMENTAL DYING YOUNG ST ELMO'S FIRE SEEMS UNSURE OF WHAT THE MOVIE'S TONE SHOULD BE SOME OF THE SCENES HAVE A FANTASTICAL LIFT THAT SEEMS RIGHT OTHERS ARE CRUDE AS THOUGH EXCERPTED FROM A MEDIOCRE ACTION PICTURE THEY OVEREMPHASIZE THE PARALLELS BETWEEN THE VIGILANTE AND THE COP BOTH ORDINARY GUYS PRESSED BY LIFE BUT REACTING IN VERY DIFFERENT WAYS THE COP REMAINS GOODHUMORED AT ALL TIMES STILL THE FILMMAKERS SET UP THE PREMISE SKILLFULLY THEY SHOW THE MAN TRAPPED IN A LOS ANGELES TRAFFIC JAM HE'S WEARING A WHITE SHIRT AND TIE AND HAS A BRIEFCASE ON THE SEAT NEXT TO HIM AND A PERSONALIZED LICENSE PLATE HE FIDDLES MORE AND MORE FRANTICALLY WITH THE NONFUNCTIONING AIRCONDITIONING SYSTEM FINALLY HE EXTRICATES HIMSELF FROM THE WHOLE MESS BY ABANDONING HIS CAR ON THE HIGHWAY AND SETTING OUT ON FOOT HE'S DECIDED TO WALK TO THE PLACE HE CALLS HOME THE HOUSE WHERE HIS EXWIFE AND DAUGHTER LIVE EVEN THOUGH HE'S BEEN FORBIDDEN TO VISIT THERE THIS IS PERHAPS THE MOVIE'S MOST INGENIOUS IDEA WE ARE MEANT TO KNOW THAT THIS MAN HAS GONE OFF HIS ROCKER THE MINUTE HE GETS OUT OF HIS CAR AND STARTS TO WALK ACROSS LOS ANGELES HE BECOMES A SUSPICIOUS CHARACTER IN MANY INSTANCES SIMPLY BECAUSE HE IS WALKING IN PLACES WHERE IN LOS ANGELES ONE DOESN'T WALK THE MOVIE IS ALMOST WORTH SEEING JUST FOR THAT IMAGE A MAN TREKKING ACROSS LOS ANGELES JOURNEYING FROM THE POVERTY OF SOUTHCENTRAL LOS ANGELES INTO THE WEIRDNESS OF HOLLYWOOD ON TO LUSH BEVERLY HILLS AND FUNKY VENICE THE FILMMAKERS WANT US TO SEE THESE NEIGHBORHOODS AS THEIR MAIN CHARACTER SEES THEM AS ALIEN CULTURES MEANT TO DRIVE HIM THE MIDDLECLASS MAN BERSERK UNFORTUNATELY THE ALIENS HE ENCOUNTERS COME PACKAGED IN CARICATURE MACHINEGUNTOTING MEXICAN TEENAGERS PRICEGOUGING KOREAN GROCERS AND NEONAZI SKINHEADS SO HE DOESN'T SEEM SO CRAZY AFTER ALL WHO WOULDN'T GO BERSERK SEEING LIFE REDUCED TO THOSE CLICHES I LIKE SALT A LOT PROBABLY BECAUSE MY MOTHER ALWAYS ASSURED US THAT OVERSALTING WAS A SIGN OF LOVE CLEARLY I WAS EASY PREY FOR LIKE WATER FOR CHOCOLATE A LOVELY MISCHIEVOUS FOLK TALE ABOUT A WOMAN WHOSE PASSIONS ARE RELEASED IN HER COOKING IN THIS LYRICAL RENDITION OF LAURA ESQUIVEL'S NOVEL SET ON A BORDER RANCH IN 1910 DURING THE MEXICAN REVOLUTION EVERYTHING BEGINS AND ENDS IN THE KITCHEN POLITICS AND ROMANCE PASS BY LIKE DREAMS TRUTH EMERGES IN FOOD THE MEXICAN DIRECTOR ALFONSO ARAU HAS DIRECTED IN A LILTING MAGICAL STYLE PROBABLY THE ONLY POSSIBLE APPROACH THOUGH NOT EASY TO PULL OFF AS GRACEFULLY AS HE HAS TO THIS FABLE ABOUT A YOUNG GIRL CONDEMNED TO SPINSTERHOOD BY HER WICKED MOTHER YES HER WICKED MOTHER THIS IS A FAIRY TALE WITHOUT PSYCHOLOGICAL EXCUSES FOR EVIL HERE REPRESSION AND REVENGE ARE ACTED OUT VIVIDLY OFTEN AT THE TABLE MEAN SISTERS ARE PUNISHED WITH FOODS CAUSING FLATULENCE SECRET LOVERS MEET VIA THEIR TASTE BUDS IT'S A VERY SATISFYING EXPERIENCE THOUGH YOU MAY LEAVE HUNGRY VIDEO TIP MR ARAU IS VERY WELLKNOWN IN HIS OWN COUNTRY AS A DIRECTOR FOR FILMS SUCH AS THE BAREFOOT EAGLE AND CALZONZIN INSPECTOR IN THIS COUNTRY HOWEVER HE'S BEST KNOWN AS AN ACTOR LESS FOR RECENT WORKS LIKE ROMANCING THE STONE AND THREE AMIGOS MORE FOR THE SAM PECKINPAH CLASSIC WESTERN THE WILD BUNCH 9302250140 930225 AMERICAN MOBILE SIGNS AGREEMENT TO MERGE WITH 2 OTHER SERVICES WOODLAND HILLS CALIF AMERICAN MOBILE SYSTEMS INC SAID IT SIGNED A LETTER OF INTENT WITH TRANSIT COMMUNICATIONS CORP AND JCC HOLDINGS INC FOR A MERGER OF THE THREE MOBILE RADIO DISPATCH SERVICES SHAREHOLDERS OF AMERICAN MOBILE SYSTEMS WOULD RECEIVE ABOUT 41 OF THE STOCK OF THE COMBINED COMPANIES TRANSIT COMMUNICATIONS WOULD RECEIVE 40 AND JCC WOULD RECEIVE 19 AMERICAN MOBILE SAID A SPOKESWOMAN WOULDN'T PROVIDE ANY ADDITIONAL DETAILS ABOUT THE PROPOSED TRANSACTION COMPLETION OF THE MERGER IS SUBJECT TO A NUMBER OF CONDITIONS INCLUDING APPROVAL BY THE FEDERAL COMMUNICATIONS COMMISSION THE OWNERSHIP RATIOS ARE SUBJECT TO EACH COMPANY'S REVIEW OF THE FINANCIAL PERFORMANCE AND OPERATIONS OF THE OTHERS THE COMPANIES AGREED TO NEGOTIATE IN GOOD FAITH TO CHANGE THE RATIOS IF THE REVIEW RESULTS ARE UNSATISFACTORY TO ANY ONE OF THEM AMERICAN MOBILE SAID AMERICAN MOBILE'S OPERATIONS ARE MAINLY IN THE SOUTHEAST US AND PRIVATELY OWNED TRANSIT COMMUNICATIONS' OPERATIONS ARE MAINLY AROUND ATLANTA WHERE THE COMPANY IS BASED JCC A PRIVATE CONCERN BASED IN NORCROSS GA OPERATES IN PARTS OF FLORIDA AND IN ATLANTA AND MEMPHIS TENN AMERICAN MOBILE SHARES WERE QUOTED LATE YESTERDAY AT 625 UP 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9302250139 930225 TECHNOLOGY & HEALTH MEN WHO EXERCISE HAVE A LOWER RISK OF HEART DISEASE STUDIES CONFIRM THE DRAWBACKS OF LEADING SEDENTARY LIFE IS IT ALSO TRUE FOR WOMEN BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL TWO NEW POPULATION STUDIES CONFIRMED THAT MEN WHO ARE PHYSICALLY ACTIVE AND FIT HAVE A LOWER RISK OF HEART DISEASE AND DEATH THAN SEDENTARY MEN BUT THE STUDIES DID NOT PROVE THAT A SEDENTARY MAN WHO BEGINS EXERCISING WILL REDUCE HIS HEART DISEASE RISK AND THE STUDIES ALSO FAILED TO INCLUDE ANYTHING ABOUT HOW WOMEN'S HEALTH IS AFFECTED BY THEIR LEVEL OF PHYSICAL FITNESS AND EXERCISE THE SHORTCOMINGS OF THE STUDIES PROMPTED A DEPUTY EDITOR OF THE NEW ENGLAND JOURNAL OF MEDICINE WHICH PUBLISHED THE NEW STUDIES TO CAUTION THAT IN EXTOLLING THE MERITS OF EXERCISE HEALTH PROFESSIONALS SHOULD NOT OVERSTATE THE CASE THE FACT THAT EXERCISE CAN IMPROVE ONE'S WORK CAPACITY AND CAN HELP CONTROL WEIGHT ARE BENEFITS SUFFICIENT IN THEMSELVES TO ENCOURAGE REGULAR EXERCISE WROTE THE EDITOR GREGORY D CURFMAN ALTHOUGH THE HYPOTHESIS THAT REGULAR EXERCISE CAN PREVENT CORONARY DISEASE AND PROLONG LIFE IS SUPPORTED BY MANY OBSERVATIONAL STUDIES IT HASN'T YET BEEN UNAMBIGUOUSLY PROVED DR CURFMAN SAID UNTIL THE ANSWER IS KNOWN THE PUBLIC SHOULD BE GIVEN THE STRAIGHT FACTS AND SPARED THE HYPE SO THAT EACH PERSON CAN MAKE AN INFORMED DECISION ABOUT THE APPROPRIATE PLACE OF PHYSICAL ACTIVITY IN HIS OR HER PERSONAL LIFE THE NEW REPORTS ARE ACTUALLY UPDATED FINDINGS ABOUT TWO GROUPS OF MEN THAT RESEARCHERS BEGAN STUDYING MORE THAN TWO DECADES AGO ONE STUDY INVOLVES 1960 MALE EMPLOYEES OF FIVE COMPANIES IN OSLO NORWAY WHEN THEY VOLUNTEERED FOR THE STUDY IN THE EARLY 1970S THEY WERE 40 TO 59 YEARS OLD AT THAT TIME EACH MAN JOINED THE STUDY HE UNDERWENT A SERIES OF LABORATORY AND EXERCISE TESTS TO DETERMINE HIS PHYSICAL FITNESS IN THE 16 YEARS SINCE THE STUDY BEGAN 271 MEN HAVE DIED MORE THAN HALF FROM HEART DISEASE THE NORWEGIAN RESEARCH TEAM EXPLAINED FOR THE ONEFOURTH OF THE MEN WHO WERE THE MOST FIT AT THE START OF THE STUDY THE RISK OF DEATH FROM HEART DISEASE HAS BEEN ONLY 30 THAT OF THE MEN WHO WERE LEAST FIT AND THE MOSTFIT MEN HAVE HAD ONLY ABOUT HALF THE RISK OF DYING FROM ANY CAUSE AS THE LEASTFIT MEN THE SECOND STUDY IS A CONTINUING MONITORING OF THE FATES OF MORE THAN 10000 MALE ALUMNI OF HARVARD COLLEGE IN BOSTON WHO ANSWERED QUESTIONNAIRES IN THE 1960S AND AGAIN IN 1977 ON THEIR LIVING HABITS INCLUDING THEIR LEVEL OF PHYSICAL ACTIVITY AGAIN AS IN PREVIOUS REPORTS THE RESEARCHERS SAID THEY FOUND THAT THE MEN WHO WERE MOST ACTIVE HAD ABOUT HALF THE RISK OF DYING FROM ANY CAUSE AS THE MOST SEDENTARY MEN IN THE NEW REPORT HOWEVER THE RESEARCHERS TOOK A SPECIAL LOOK AT THE HARVARD ALUMNI WHO CHANGED THEIR LIVING HABITS BETWEEN THE TIMES THEY ANSWERED THE TWO QUESTIONNAIRES ALTHOUGH THE DIFFERENCE WAS NOT SIGNIFICANT PERHAPS BECAUSE OF THE SMALL NUMBERS THE ALUMNI WHO INCREASED THEIR LEVEL OF ACTIVITY THROUGH A COMBINATION OF WALKING CLIMBING STAIRS AND ENGAGING IN SPORTS ACTIVITY HAD A 15 LOWER DEATH RATE THAN THE MEN WHO CONTINUED TO BE SEDENTARY SAID RALPH S PAFFENBARGER JR OF STANFORD UNIVERSITY AND HIS COLLEAGUES AT THE HARVARD SCHOOL OF PUBLIC HEALTH BOTH RESEARCH TEAMS SAID THEIR FINDINGS SUPPORT THE THEORY THAT EXERCISE CAN REDUCE THE RISK OF DEATH PARTICULARLY DEATH FROM HEART DISEASE BUT THEY AGREED THAT THIS IS STILL AN UNPROVEN THEORY DR CURFMAN NOTED THAT 27 STUDIES HAVE BEEN DONE THAT SUPPORT THE IDEA THAT PHYSICAL ACTIVITY HELPS PREVENT DEATH FROM HEART DISEASE BUT ALL THE STUDIES INVOLVE JUST WATCHING WHAT HAPPENS TO A GROUP OF MEN AND NO RELIABLE CONCLUSIONS ABOUT CAUSE AND EFFECT CAN BE DRAWN FROM THEM HE SAID STILL LACKING AND UNLIKELY TO BE DONE IS AN EXPERIMENT IN WHICH TWO GROUPS OF RANDOMLY SELECTED HEALTHY PERSONS ARE STUDIED AND ONE GROUP IS SEDENTARY OR THE OTHER DOES A SET AMOUNT OF EXERCISE THEN AFTER A FEW YEARS IT COULD BE SEEN WHETHER THE EXERCISE MAKES A DIFFERENCE IN DEATH RATES LACK OF SUCH AN EXPERIMENT LEAVES A SUBSTANTIAL GAP IN OUR KNOWLEDGE DR CURFMAN WROTE ANOTHER MAJOR GAP ARISES FROM THE PAUCITY OF DATA ABOUT PHYSICAL ACTIVITY AND HEALTH IN WOMEN AS REFLECTED BY THE ABSENCE OF WOMEN FROM THE STUDIES HE ADDED