ANNTAYLOR STORES CORP NEW YORK ROBERT WEINSTEIN 35 YEARS OLD WAS NAMED TO A NEW POSITION AS SENIOR VICE PRESIDENT MARKETING OF ANNTAYLOR INC A UNIT OF THIS WOMEN'S APPAREL COMPANY MR WEINSTEIN FORMERLY WAS CREATIVE DIRECTOR FOR LERNER NEW YORK A DIVISION OF LIMITED INC AN APPAREL RETAILER 9302250137 930225 RALSTON TO BUY BATTERY BUSINESS ST LOUIS RALSTON PURINA CO SAID ITS EVEREADY BATTERY CO UNIT SIGNED A LETTER OF INTENT TO BUY THE NICKELBASED RECHARGEABLE BATTERY BUSINESS OF GATES ENERGY PRODUCTS INC A UNIT OF CLOSELY HELD GATES CORP TERMS WEREN'T DISCLOSED 9302250136 930225 WHO'S NEWS STUDENT LOAN CORP STUDENT LOAN CORP ROCHESTER NY MICHAEL PIEMONTE WAS NAMED CHIEF FINANCIAL OFFICER A NEWLY CREATED POSITION FOR THIS NEWLY PUBLIC COMPANY WHICH IS 80OWNED BY CITICORP MR PIEMONTE 37 YEARS OLD WAS PREVIOUSLY CONTROLLER AND VICE PRESIDENT OF MORTGAGEBACKED SECURITIES AT THE WASHINGTONBASED FEDERAL AGRICULTURAL MORTGAGE CORP 9302250135 930225 LEISURE & ARTS TV KARL MALDEN AS A HEROIC BUS DRIVER DNA IN COURT BY DOROTHY RABINOWITZ THIS PLODDING FILM REVOLVES AROUND A SUBURBAN BEAUTY CHERYL LADD WHOSE ABUSIVE MATE HIRES A KILLER TO GET RID OF HER JAMESON PARKER WHO LOOKS LIKE AN IVY LEAGUE PRINCELING IS THE SCOUNDREL IN QUESTION HIS PRESENCE HERE HELPS AS DOES THE SCENERY BUT THAT WON'T BE ENOUGH TO KEEP DEAD BEFORE DAWN FROM EXPIRING BEFORE YOUR EYES IN THE MIDDLE OF THE EVENING BACK IN 1976 IN NORTHERN CALIFORNIA THREE YOUNG MEN DECIDED TO KIDNAP A BUSLOAD OF CHILDREN FROM THE CHOWCHILLA SCHOOL DISTRICT THIS FILM BASED ON THAT HEADLINEMAKING CASE STARS A STOIC KARL MALDEN IN THE ROLE OF THE HEROIC BUS DRIVER WHO HELPS LEAD THE CHILDREN OUT OF THE STIFLING UNDERGROUND CAVERN WHERE THEIR ABDUCTORS HAVE HIDDEN THEM THE FILM IS AS IT WAS DESIGNED TO BE THOROUGHLY HARROWING AS IT FOCUSES ON THE TERROR OF THE CHILDREN MR MALDEN IS AS USUAL HIS STURDY ACTORLY SELF THOUGH WITH A DIFFERENCE THIS MAY BE THE FIRST TIME MR MALDEN'S FANS HAVE BEEN PRIVILEGED TO SEE HIM STRIPPED DOWN TO BOXER SHORTS AS HE IS IN THE UNDERGROUNDCAVERN SCENE SIMPLISTICALLY DRAWN HEAVY ON THE SENSATIONAL AND CLOYINGLY SENTIMENTAL THE FILM MAY BE BUT IT IS ALSO HIGHLY EFFECTIVE MELODRAMA THIS FACTBASED TWOPARTER CHRONICLES A LOYAL SUBURBAN WIFE'S EFFORT TO MAINTAIN FAITH IN HER HUSBAND ELLIOT GOULD WHO HAS BEEN INDICTED FOR MURDER AND ALSO SURVIVE THE LOSS OF HER BANK ACCOUNTS AND CREDIT CARDS THE FAITHMAINTAINING PART ISN'T EASY IT BEING PERFECTLY CLEAR FROM THE START OF THIS OVERLONG SAGA THAT THE AFOREMENTIONED HUSBAND IS GUILTY ALONG WITH HIS BROTHER OF HAVING THEIR ELDERLY MOTHER AND FATHER KNOCKED OFF FOR THE INSURANCE MONEY EVIDENTLY HARD PUT TO FIGURE OUT WAYS TO STRETCH THIS EPIC OUT OVER TWO NIGHTS SCRIPT WRITERS BILL DRISKILL SARA DAVIDSON AND JUDITH PAIGE MITCHELL HAVE CONTRIVED A STORY TRAILING OFF INTO MANY HIGHWAYS AND BYWAYS INCLUDING A PROFOUNDLY DULL ROMANCE THAT SPUTTERS INTO BEING WHEN THE WIFE MIMI ROGERS TAKES UP AFTER HER HUSBAND'S ARREST WITH A KINDLY LOCAL DOLT IT SAYS EVERYTHING ABOUT THIS PRODUCTION THAT GIVEN A STORY OVERFLOWING WITH MONUMENTAL THEMES IE GREED AND JEALOUSY TO SAY NOTHING OF PATRICIDE AND MATRICIDE THE FILMMAKERS CHOSE TO FOCUS INSTEAD ON HOW THE KILLER'S WIFE LEARNS TO CONQUER HER DEPENDENCY IN THE CREATIVE WORLD OF OUR TV WRITERS OF COURSE THERE IS ONLY ONE GREAT THEME THE PLIGHT OF STRUGGLING WOMANKIND MS ROGERS SLEEPWALKS THROUGH THE ACTION IN A BRAVE STUPOR BUT MR GOULD MANAGES A CERTAIN WEIRD AND SWEATY AUTHORITY THE FILM ISN'T ENTIRELY FLABBY THANKS MAINLY TO HIM AND THE ALWAYS INTERESTING JOHN PLESHETTE THE OTHER KILLER BROTHER NOVA INVESTIGATES THE USES OF DNA IN COURT TESTIMONY THE FILMMAKERS SHOW HOW DNA TYPING RESOLVED THE CASE AND ENDED THE TORMENT OF US NAVY MAN JIM WADE ACCUSED OF RAPING HIS SMALL DAUGHTER WHO HAD ACTUALLY BEEN ABDUCTED BY A PREDATOR WITH A LONG RECORD CHILD SEX ABUSE EXPERTS IN SEATTLE INSISTED THE FATHER WAS THE RAPIST BECAUSE HE FITTED THEIR SOCALLED PROFILE OF AN ABUSER DNA TESTING CONCLUSIVELY PROVED THE FATHER'S INNOCENCE AND THE IDENTITY OF THE REAL PERPETRATOR BUT EVEN THIS AND THE COURT'S RULING WEREN'T ENOUGH TO KEEP THE ABUSE INDUSTRY'S CRAZIES FROM TRYING TO TAKE THE CHILD AWAY THE FILM PRODUCED BY DEREK BRAITHWAITE THEREAFTER GOES ON TO SHOW IN DETAIL HOW DNA EVIDENCE HELPED SOLVE TWO SEXUAL MURDERS IN ENGLAND THIS SCIENCE PROGRAM MAY ALSO BE THE BEST CRIME SUSPENSE STORY OF THE TV SEASON A FOURPART SERIES BY ROBERT MARSHALL ON THE LEGACY OF GENGHIS KHAN THIS IS HISTORY BOTH CURRENT AND ANCIENT AUTHORITATIVELY DELIVERED ALL OF THE SIDES OF THIS MANYFACETED WORK ARE ADMIRABLE ITS COLOR ITS FOOTAGE OF COMMUNIST INNER MONGOLIA ITS HISTORIC SWEEP AND NOT LEAST ITS EVIDENT RESPECT FOR THE VIEWER 9302250134 930225 FINANCING BUSINESS FOREST OIL CORP FOREST OIL CORP OF DENVER SAID IT REDEEMED 39 MILLION PRINCIPAL AMOUNT PLUS ACCRUED INTEREST OF ITS 12 3/4 SENIOR SECURED NOTES DUE JUNE 1 1998 THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WAS REQUIRED BY AN INDENTURE WITH ONE OF ITS TRUSTEES FOR THE NOTE HOLDERS TO USE 50 OF THE COMPANY'S PROCEEDS FROM A LITIGATION SETTLEMENT TO REDEEM THE NOTES 9302250133 930225 LEISURE & ARTS THE GALLERY HEAD OF THE ABSTRACTIONISTS BY DEBORAH SOLOMON NEW YORK OF ALL THE ABSTRACT EXPRESSIONISTS ROBERT MOTHERWELL WAS THE ONLY ONE WHO ATTENDED AN IVY LEAGUE SCHOOL HE EARNED A MASTER'S FROM HARVARD IN PHILOSOPHY FITTINGLY HE TENDED TO BE SEEN AS THE RESIDENT INTELLECTUAL OF THE ABSTRACTEXPRESSIONIST MOVEMENT A STATUS THAT BEFELL HIM IN PART BECAUSE HIS COLLEAGUES WERE SO BLATANTLY UNSUITED FOR THE JOB ANYONE FAMILIAR WITH AMERICAN ART IN THE 1940S AND '50S KNOWS THAT JACKSON POLLOCK WILLEM DE KOONING AND THE REST OF THE ABSTRACTEXPRESSIONIST GANG REMAIN AS FAMOUS FOR THEIR EMOTIONLADEN CANVASES AS FOR THEIR HEAVY DRINKING AND BEHAVIOR SHORT ON COUTH MOTHERWELL IN CONTRAST PRESENTED HIMSELF AS A BRAINY AND MATURE COSMOPOLITE WHO GAVE HIS PICTURES TITLES FROM PLATO AND NEVER FAILED TO QUOTE A LINE OR TWO FROM JAMES JOYCE IN INTERVIEWS IT GOES WITHOUT SAYING THAT A COMMAND OF LITERATURE HAS NO BEARING ON AN ARTIST'S ABILITY TO ENDOW DAUBS OF PIGMENT WITH MEANING OR PICTORIAL INTEREST YET IN MOTHERWELL'S CASE HIS INTELLECTUALISM WAS A KIND OF SCREEN DISCOURAGING ANY SERIOUS INQUIRIES INTO THE QUALITY OF HIS ACHIEVEMENT HERE WAS AN ABSTRACT EXPRESSIONIST YOU COULD ACTUALLY TALK TO AND OVER THE YEARS INNUMERABLE CRITICS AND ART HISTORIANS MADE THE PILGRIMAGE TO MOTHERWELL'S ESTATE IN GREENWICH CONN FOR AN AFTERNOON OF ELEVATED COLLOQUY WHEN MOTHERWELL DIED IN 1991 AT THE AGE OF 76 IT WAS REASONABLE TO EXPECT THAT A REASSESSMENT OF HIS WORK WOULD FOLLOW YET HE CONTINUES TO BE LAVISHED WITH THE USUAL HYPERBOLE THE CRITIC ARTHUR DANTO RECENTLY DESCRIBED HIM AS NOT ONLY A GREAT ARTIST BUT A GREAT INTELLECTUAL FORCE WHO SOUGHT TO SITUATE THE ART OF HIS TIME IN THE LARGER STRUCTURES OF HISTORY MORE THAN ANY ARTIST SINCE VASARI YOU'D THINK THAT MONDRIAN KANDINSKY AND MANY OTHER ARTISTEXPLICATORS SINCE THE RENAISSANCE HAD NEVER EXISTED IT MAY BE AWHILE BEFORE THE AIR IS CLEAR OF SUCH VERBAL STARDUST BUT IN THE MEANTIME SEVERAL NEW EXHIBITIONS OF MOTHERWELL'S WORK PROVIDE AN OPPORTUNITY TO CONSIDER HIS WORK ANEW KNOEDLER & CO THE UPTOWN GALLERY THAT REPRESENTED THE ARTIST FOR NEARLY 20 YEARS IS SHOWING THE OPEN SERIES THESE SPARTAN PAINTINGS MADE FROM 1967 UNTIL THE MID'70S REMAIN AMONG THE MOST FAMILIAR OF MOTHERWELL'S IMAGES STILL THE EXHIBITION UP THROUGH MARCH 11 IS KNOEDLER'S FIRST MOTHERWELL SHOW SINCE THE ARTIST'S DEATH AND SEEMS A CURIOUS CHOICE SINCE THE OPEN PAINTINGS COMPARED WITH THE ARTIST'S LUSH COLLAGES OR HIS LENGTHY SERIES OF SPANISH ELEGY PAINTINGS MAKE THE WEAKEST POSSIBLE ARGUMENT FOR HIS TALENTS HE PAINTED THE OPEN SERIES DURING THE HEYDAY OF MINIMALISM AND THE WORK SHARES WITH THAT MOVEMENT A PREFERENCE FOR OUTSIZE GEOMETRIC FORMS THEY GENERALLY CONSIST OF LARGE UNINFLECTED FIELDS OF COLOR WITH ONE SECTION RESERVED FOR A FEW STUBBY LINES IN THE SHAPE OF AN INCOMPLETE RECTANGLE THE END EFFECT IS SUPPOSED TO RESEMBLE A BIG WALL BROKEN BY THE OUTLINE OF A WINDOW OR A DOOR IT'S AN INTERESTING IDEA FROM THE CARVED STONE PORTALS OF ANCIENT GREECE TO THE SHUTTERED WINDOWS OF MATISSE WINDOWS AND DOORS REMIND US THAT ART ITSELF CAN PROVIDE AN ESCAPE FROM THE CONFINES OF A ROOM AN IMAGINARY ESCAPE OF COURSE YET THE WORKS IN THE OPEN SERIES NEVER OPEN UP INTO ANYTHING BEYOND THEIR OWN INERT SURFACES A MORE ENGAGING SIDE OF MOTHERWELL CAN BE FOUND AT ASSOCIATED AMERICAN ARTISTS A MIDTOWN GALLERY THAT HAS MOUNTED A RETROSPECTIVE OF HIS BLACKANDWHITE PRINTS UP THROUGH MARCH 13 SPANNING THE PAST THREE DECADES MOTHERWELL'S PRINTS ARE EASIER TO LIKE THAN HIS PAINTINGS FROM THE SAME PERIOD AND THE REASON MAY BE MERELY TECHNICAL THE INK USED IN PRINTMAKING IS OILBASED AND LENDS HIS FORMS A STRIKING VIBRANCY ABSENT FROM HIS PAINTINGS SINCE HE SWITCHED FROM OILS TO ACRYLIC PIGMENTS IN THE '60S MOST OF THE PRINTS HERE ARE INTENDED AS EXERCISES IN EMOTIONAL DIRECTNESS THEY MIGHT CONSIST OF JUST A FEW THRUSTING STROKES OR A RAGGED STAR SHAPE FROZEN AGAINST THE BARE WHITENESS OF THE PAGE MANAGING TO BE BOTH SPONTANEOUS AND STUDIED THESE BLACK SPLATTERINGS LOOK LESS LIKE IMPULSIVE GESTURES THAN GENERIC '50SSTYLE ABSTRACTIONS THERE IS A SIMILAR CRANIAL CHILL PERVADING THE COLLECTED WRITINGS OF ROBERT MOTHERWELL OXFORD UNIVERSITY PRESS 325 PAGES 3995 A HEFTY NEW VOLUME EDITED BY STEPHANIE TERENZIO THE BOOK OPENS IN 1941 WITH A LETTER FROM MOTHERWELL TO WILLIAM CARLOS WILLIAMS ASKING THE POET TO CONSIDER WRITING FOR THE SURREALIST MAGAZINE VIEW MOTHERWELL WAS THEN 26 YEARS OLD A PRECOCIOUS YOUNG PAINTER WHO HAD BEFRIENDED SOME OF THE SURREALIST WAR REFUGEES IN NEW YORK HIS LETTER TO WILLIAMS WRITTEN IN POLISHED PROSE GOES ON AT LENGTH ABOUT HIS ACTIVITIES BEFORE HE MET THE SURREALISTS HE EXPLAINS I HAD BEEN AN OBSERVER LIKE A CHARACTER IN JAMES BUT WITH THE ADVANTAGE OF HAVING LOGICAL AND PLASTIC WEAPONS WITH WHICH TO TEST MY OBSERVATIONS BY WEAPONS HE IS REFERRING TO WHAT MOST OF US MORTALS CALL SIMPLY PAINTS AND BRUSHES THIS SELFINFLATING AND UTTERLY IMPERSONAL TONE COLORS THE ENTIRE BOOK MOTHERWELL RUMINATES CONFIDENTLY ABOUT THE ART OF HIS TIME WITHOUT EVER OFFERING INSIGHT INTO THE FEELINGS THAT LED HIM TO BECOME A PAINTER THE BOOK IN OTHER WORDS IS VERY MUCH A PROFESSIONAL AFFAIR JUST LIKE MOTHERWELL'S ART HE ADOPTED THE FORMS OF ABSTRACT EXPRESSIONISM BUT WAS TOO BUSY TALKING ABOUT IT TO NOTICE THAT HE FAILED TO BRING THESE FORMS TO LIFE 9302250132 930225 LOWINCOME HOUSING PARTNERSHIPS LOOK GOOD BUT AREN'T TAX ANTIDOTE FOR ALL BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU HAVEN'T ALREADY YOU'RE GOING TO BE HEARING ABOUT LIMITED PARTNERSHIPS THAT INVEST IN LOWINCOME HOUSING MUCH OF THE RETURN ON THESE SECURITIES COMES FROM THE LOWINCOME HOUSING TAX CREDIT THAT PRESIDENT CLINTON LAST WEEK PROPOSED TO MAKE PERMANENT AND THE IDEA OF REAPING HEFTY ANNUAL CREDITS WHICH DIRECTLY REDUCE ONE'S TAX BILL HAS GAINED ADDED ALLURE WITH THE PRESIDENT'S PROPOSAL TO RAISE THE TOP TAX RATE ON HIGH EARNERS TO AROUND 40 EVERYONE IS GOING AROUND CRYING HOW DO I AVOID THIS TAX INCREASE' SO THESE TAX CREDIT DEALS ARE GOING TO BECOME REALLY HOT SAYS INDIANAPOLIS FINANCIAL PLANNER GARY PITTSFORD ONE BIG SPONSOR OF LOWINCOME HOUSING PARTNERSHIPS BOSTON FINANCIAL GROUP SAYS IT HAD A FEW DAYS THIS PAST WEEK WHEN SALES WERE FOUR TIMES THEIR LEVEL OF EARLIER THIS MONTH BUT A LOWINCOME HOUSING PARTNERSHIP IS DEFINITELY NOT A TAX ANTIDOTE TO BE SNATCHED UP BLINDLY IT'S NOT A MAGIC SOLUTION SAYS WASHINGTON FINANCIAL PLANNER DENNIS GURTZ BUT IT COULD BE A GOOD INVESTMENT SOME OTHER PLANNERS ARE LESS ENTHUSIASTIC SUGGESTING THE POTENTIAL RETURNS JUST AREN'T HIGH ENOUGH TO OFFSET THE PARTNERSHIPS' ILLIQUIDITY AND THEIR LIKELY LIVES OF AT LEAST 15 YEARS I CAN'T GET EXCITED ABOUT THEM EVEN WITH THE CLINTON TAX PLAN MR PITTSFORD SAYS THERE ARE ALSO RESTRICTIONS ON HOW MUCH PEOPLE CAN INVEST IN THESE PROGRAMS AND CERTAIN PEOPLE MAY NOT BE ABLE TO TAKE FULL ADVANTAGE OF THE CREDITS THE LOWINCOME HOUSING PARTNERSHIPS GOT THEIR START UNDER THE 1986 TAX ACT WHICH WIPED OUT MOST OLDER TAX SHELTERS TO ENSURE THAT PRIVATE MONEY CONTINUED TO FLOW INTO LOWINCOME HOUSING TAX WRITERS AUTHORIZED SUBSTANTIAL CREDITS PAYABLE OVER 10 YEARS TO INVESTORS WHO BUILD OR SUBSTANTIALLY REHABILITATE QUALIFYING APARTMENT COMPLEXES THE FLOW OF CREDITS FROM A LOWINCOME HOUSING PARTNERSHIP CAN INDEED BE IMPRESSIVE SPONSORS TYPICALLY PROJECT THAT WITHIN A FEW YEARS ONCE BUILDINGS ARE OCCUPIED CREDITS WILL FLOW AT A STEADY ANNUAL RATE OF ABOUT 15 OF THE INVESTMENT AND THE CREDITS ARE TYPICALLY EXPECTED TO TOTAL AROUND 150 OF THE INITIAL INVESTMENT OVER A PERIOD OF ABOUT 12 YEARS THE MAIN THING YOU ARE BUYING IS 150 OF TAX CREDIT FOR EVERY DOLLAR YOU INVEST WHICH WORKS OUT TO AN AFTERTAX INTERNAL RATE OF RETURN OF ABOUT 8 SAYS KENNETH F UNGER A SENIOR VICE PRESIDENT OF SPONSOR BOSTON CAPITAL PARTNERS AN UNRELATED COMPETITOR OF BOSTON FINANCIAL ONE RISK TO CONSIDER INVESTORS LOSE SOME OF THEIR CREDITS IF ANY OF THE PARTNERSHIP'S APARTMENT COMPLEXES CEASE TO QUALIFY UNDER THE COMPLEX CREDIT RULES OR ARE LOST THROUGH FORECLOSURE THERE IS ALSO A CHANCE THAT THE TAX LAWS COULD BE CHANGED AT SOME POINT TO DISALLOW THE HOUSING CREDITS ALTHOUGH THAT SEEMS VERY UNLIKELY GIVEN THE WIDE SUPPORT FOR THE HOUSING TAX CREDIT AMONG LAWMAKERS I DON'T FEEL CONGRESS IS GOING TO CHANGE THE TAX LAWS ON YOU MIDSTREAM SAYS WILLIAM G BRENNAN A PARTNER AND FINANCIAL PLANNING SPECIALIST AT ACCOUNTANTS ERNST & YOUNG THE OTHER BIG QUESTIONS FOR INVESTORS ARE WHEN WILL A PARTNERSHIP'S PROPERTIES BE SOLD AND WILL THE INVESTORS GET BACK ALL OR EVEN ANY OF THEIR PRINCIPAL THE TAX LAW REQUIRES PROPERTIES THAT EARN THE CREDIT TO CONTINUE AS QUALIFIED LOWINCOME HOUSING FOR 15 YEARS MAKING SALES BEFORE THEN UNLIKELY THE PROGRAMS ARE LIKELY TO RUN 17 OR 18 YEARS SAYS GEORGIA MURRAY A SENIOR VICE PRESIDENT OF BOSTON FINANCIAL INVESTORS WHO NEED TO SELL BEFORE THEN WILL HAVE TO TURN TO A LOWVOLUME INFORMAL PARTNERSHIP RESALE MARKET MEANWHILE LOWINCOME HOUSING IS NOT CONSIDERED ONE OF THE MOST PROMISING SECTORS OF THE REALESTATE MARKET BOTH BOSTON CAPITAL AND BOSTON FINANCIAL SAY THEY AIM TO RETURN THE ORIGINAL INVESTMENT WHICH COULD BOOST THE INVESTOR'S AFTERTAX RETURN TO 12 OR 13 BUT THAT MIGHT NOT OCCUR IF THE REAL ESTATE DOES HAVE SIGNIFICANT VALUE AT THE END THAT IS ICING ON THE CAKE BUT NOT THE REASON TO INVEST SAYS STEPHEN H HAMRICK A SENIOR VICE PRESIDENT AND HEAD OF PARTNERSHIP ACTIVITIES AT PAINEWEBBER INC MR GURTZ THE WASHINGTON PLANNER HAS DECIDED TO RECOMMEND LOWINCOME HOUSING PARTNERSHIPS TO SOME OF HIS CLIENTS AFTER BEING NEUTRAL TO NEGATIVE ON THEM BEFORE ONE BIG REASON FOR HIS CHANGE OF MIND TODAY'S LOW YIELDS ON FIXEDINCOME INVESTMENTS GETTING 8 OR MORE TAXFREE WOULD BE A VERY GOOD RETURN ESPECIALLY WHEN BOND YIELDS HAVE COME DOWN HE SAYS BUT OTHER ADVISERS SUCH AS MR PITTSFORD IN INDIANAPOLIS SAY A RETURN OF 8 OR SO TAXFREE JUST ISN'T ENOUGH I'VE GOT TO HOLD IT FOR A LONG TIME IT'S ILLIQUID I'M TOTALLY AT THE GENERAL PARTNER'S MERCY MR PITTSFORD SAYS TO MAKE THAT TYPE OF INVESTMENT HE SAYS HE REQUIRES A POTENTIAL RETURN IN THE HIGH TEENS ROBERT WEGNER A SUMMIT NJ ADVISER SAYS HE BELIEVES CLIENTS WILL DO BETTER IN PLAINVANILLA NONTAXCREDIT REALESTATE PARTNERSHIPS THAT HAVE THE POTENTIAL FOR GREATER PRICE APPRECIATION INTERESTED INVESTORS FACE LIMITS ON THE AMOUNT OF LOWINCOME HOUSING CREDITS THEY CAN USE TO REDUCE THEIR TAXES EACH YEAR THE LIMIT IS EQUAL TO THE TAX SAVINGS FROM A 25000 DEDUCTION THAT IS 7000 FOR PEOPLE IN THE 28 BRACKET AND 7750 FOR PEOPLE WITH A 31 MARGINAL RATE THOSE FIGURES TRANSLATE INTO MAXIMUM INVESTMENTS IN LOWINCOME PROGRAMS OF ABOUT 47000 OR 52000 RESPECTIVELY IF TAX RATES GO UP SO WOULD THE AMOUNT INVESTORS SUBJECT TO THE HIGHER RATES COULD PUT INTO THESE TAXCREDIT PROGRAMS SOME TAXPAYERS THOUGH MAY BE UNABLE TO USE THE CREDITS AND SHOULD CONSULT A TAX ADVISER BEFORE INVESTING THESE PEOPLE INCLUDE MARRIED COUPLES WHO FILE SEPARATE RETURNS AND SOME PEOPLE WHO OWN AND ACTIVELY MANAGE REALESTATE PROPERTIES CREDITS ALSO DON'T REDUCE THE TAX BILLS OF PEOPLE WHO ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX THE SPECIAL LEVY DESIGNED TO ENSURE THAT NOBODY ESCAPES PAYING AT LEAST SOME TAX THE COMPLICATED TAX REPORTING FOR PARTNERSHIPS CAN ALSO MEAN A BIGGER BILL FROM ONE'S ACCOUNTANT LOWINCOME HOUSING PARTNERSHIPS MAY BE PARTICULARLY ATTRACTIVE FOR INVESTORS WHO HAVE OTHER PARTNERSHIP INVESTMENTS THAT ARE GENERATING SOCALLED PASSIVE INCOME DEPRECIATION DEDUCTIONS FROM THE LOWINCOME HOUSING PARTNERSHIPS CAN BE USED TO OFFSET SUCH PASSIVE INCOME ALTHOUGH THEY CANNOT BE USED AGAINST EARNED INCOME OR OTHER INVESTMENT EARNINGS CORPORATIONS WHICH CAN USE BOTH TAX CREDITS AND DEPRECIATION DEDUCTIONS HAVE BEEN BIG BUYERS OF LOWINCOME HOUSING PROGRAMS FINALLY ADVISERS SAY THE COMPLEXITY OF THE TAXCREDIT AREA MAKES IT IMPERATIVE THAT PEOPLE INVEST WITH EXPERIENCED SPONSORS IF THESE PARTNERSHIPS REALLY SOAR IN POPULARITY MR BRENNAN WARNS YOU ARE GOING TO HAVE A LOT OF OPERATORS IN THERE WHO HAVE NEVER DONE THIS IN THEIR LIVES THESE NUMBERS PREPARED BY BOSTON FINANCIAL GROUP FOR ITS TAX CREDIT FUND VII GIVE AN IDEA OF HOW A LOWINCOME HOUSING PARTNERSHIP IS SUPPOSED TO WORK INVESTOR BUYS 10000 OF PARTNERSHIP UNITS AFTER FEES AND RESERVES ABOUT 7350 GOES INTO LOWINCOME APARTMENT COMPLEXES INVESTOR GETS A STREAM OF TAX CREDITS THAT ARE TARGETED TO TOTAL ABOUT 15000 OVER 12 YEARS THE ANNUAL CREDIT IS PROJECTED TO REACH ABOUT A HIGH OF AROUND 1500 DURING THE YEARS 1995 THROUGH 2002 THE SPONSOR SAYS THE AFTERTAX INTERNAL RATE OF RETURN FROM THE CREDITS WOULD BE 85 PROPERTIES MUST CONTINUE AS QUALIFIED LOWINCOME HOUSING FOR 15 YEARS THROUGH 2008 IT'S LIKELY TO BE A FEW YEARS PAST THAT BEFORE ALL THE BUILDINGS ARE SOLD IF THE PROPERTIES ARE SOLD AFTER 15 YEARS AND THE INVESTOR'S SHARE OF THE PROCEEDS IS 10000 THE SPONSOR SAYS THE INVESTOR'S AFTERTAX RETURN WOULD BE AROUND 13 IF THE INVESTOR RECEIVES NO SALES PROCEEDS AND DEDUCTS A CAPITAL LOSS AFTER 15 YEARS THE AFTERTAX RETURN WOULD BE AROUND 10 9302250131 930225 WHO'S NEWS HARTMARX CORP HARTMARX CORP CHICAGO THIS APPAREL MAKER AND RETAILER NAMED WALLACE L RUECKEL 49 YEARS OLD FORMERLY CORPORATE TREASURER OF GUARDIAN INDUSTRIES CORP NORTHVILLE MICH EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR RUECKEL SUCCEEDS JEROME DORF 56 WHO IS RETIRING AFTER MORE THAN 30 YEARS WITH THE COMPANY AND WILL SERVE AS A CONSULTANT ADDITIONALLY HARTMARX NAMED ITS 43YEAROLD PRESIDENT HOMI B PATEL TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER AND NAMED CAREY M STEIN 45 NOW EXECUTIVE VICE PRESIDENT SECRETARY AND GENERAL COUNSEL TO THE ADDITIONAL POST OF CHIEF ADMINISTRATIVE OFFICER THE COMPANY PROMOTED ITS CONTROLLER GLENN R MORGAN 45 TO SENIOR VICE PRESIDENT 9302250130 930225 INTERNATIONAL CIA SAYS NORTH KOREA APPEARS ACTIVE IN BIOLOGICAL NUCLEAR ARMS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NORTH KOREA IS EXPERIMENTING WITH BIOLOGICAL WEAPONS AND IS LIKELY HIDING EVIDENCE OF NUCLEAR WEAPONS ACTIVITY FROM INTERNATIONAL INSPECTORS INCLUDING ENOUGH MATERIAL TO MAKE AT LEAST ONE NUCLEAR WEAPON ACCORDING TO CENTRAL INTELLIGENCE AGENCY OFFICIALS CIA CHIEF JAMES WOOLSEY AND GORDON OEHLER THE AGENCY'S TOP WEAPONSPROLIFERATION EXPERT MADE THEIR ASSERTIONS IN TESTIMONY BEFORE THE SENATE GOVERNMENTAL AFFAIRS COMMITTEE THE CLAIMS THE STRONGEST THE US HAS MADE ON NORTH KOREA'S WEAPONS PROGRAMS COME AS NORTH KOREA HEADS INTO AN UNPRECEDENTED SHOWDOWN WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY OVER WHETHER THE AGENCY'S INSPECTION TEAMS HAVE THE RIGHT TO VISIT FACILITIES IN NORTH KOREA'S NUCLEAR RESEARCH COMPLEX AT YONGBYON 60 MILES NORTH OF THE CAPITAL PYONGYANG WE HAVE EVERY INDICATION MR WOOLSEY SAID THAT THE NORTH KOREANS ARE HIDING EVIDENCE OF SOME NUCLEAR WEAPONSRELATED ACTIVITIES FROM THE INTERNATIONAL COMMUNITY HE ADDED THAT THERE WAS A REAL POSSIBILITY THE NATION HAS MADE ENOUGH PLUTONIUM FOR AT LEAST ONE NUCLEAR WEAPON AND IS HIDING THIS FROM THE IAEA MR OEHLER CONFIRMED A RUSSIAN REPORT ON NORTH KOREA'S BIOLOGICAL WEAPONS EXPERIMENTS HE SAID THE RESEARCH HAS INCLUDED WAYS TO SPREAD SUCH DISEASES AS ANTHRAX CHOLERA AND BUBONIC PLAGUE THE COMMENTS ON NUCLEAR WEAPONRY APPEAR TO BE INTENDED TO INCREASE INTERNATIONAL PRESSURE ON NORTH KOREA TO ABIDE BY THE THE NUCLEAR NONPROLIFERATION TREATY WHICH IT SIGNED WITH MUCH FANFARE MORE THAN A YEAR AGO UNDER THE TERMS OF THE TREATY UNDER WHICH MANY NATIONS HAVE GIVEN UP THE RIGHT TO MAINTAIN NUCLEAR WEAPONS NORTH KOREA PROMISED TO OPEN ITS NUCLEAR FACILITIES TO INSPECTION TEAMS OF THE IAEA A VIENNABASED AGENCY THAT IS AFFILIATED WITH THE UNITED NATIONS DAVID KYD A SPOKESMAN FOR THE IAEA SAID THE AGENCY'S 35MEMBER BOARD OF GOVERNORS HAS BEEN HOLDING DELIBERATIONS THIS WEEK ON HOW TO DEAL WITH THE IMPASSE THAT EMERGED LAST MONTH WHEN IAEA INSPECTORS ASSERTED THEIR RIGHT TO VISIT TWO NUCLEAR WASTE SITES AT YONGBYON NORTH KOREA FLATLY REFUSED THE REQUEST CLAIMING THEY WERE UNRELATED MILITARY SITES THE INSPECTORS ACCORDING TO MR KYD SUSPECT THE SITES CONTAIN NUCLEAR WASTES FROM THE OPERATIONS OF A LARGE NUCLEAR RESEARCH REACTOR AT YONGBYON IF SO THE WASTES WOULD INDICATE HOW LONG THE REACTOR WAS OPERATED AND HOW MUCH PLUTONIUM IT PRODUCED NORTH KOREA WHICH SENT ITS TOP NUCLEAR ENERGY OFFICIAL TO VIENNA LAST WEEK HAS INSISTED THAT IT GENERATED ONLY A SMALL AMOUNT OF PLUTONIUM IN THE REACTOR DURING 1990 BUT NORTH KOREAN ENGINEERS HAVE GIVEN THE IAEA INSPECTORS SAMPLES OF WASTES AND PLUTONIUM THAT DON'T MATCH MR KYD SAID THAT RAISES THE QUESTION OF WHETHER THE REACTOR OPERATED AT OTHER TIMES THE REACTOR WAS LOADED WITH NUCLEAR FUEL IN 1986 PLUTONIUM WHICH IS CREATED DURING THE OPERATION OF A NUCLEAR REACTOR IS AN EXPLOSIVE METAL USED IN NUCLEAR WARHEADS IN HIS STATEMENT MR WOOLSEY ALSO COMPLAINED THAT NORTH KOREA IS EMERGING AS A KEY SUPPLIER FOR MISSILE PROGRAMS IN IRAN AS WELL AS SYRIA WHICH HAS BEEN DEVELOPING CHEMICAL WEAPONS THE NEWLY APPOINTED CIA CHIEF ASSERTED THAT IRAN IS CONTINUING TO DEVELOP NUCLEAR WEAPONS EVEN THOUGH IT ALSO SIGNED THE NUCLEAR NONPROLIFERATION TREATY AND HAS ADMITTED IAEA INSPECTION TEAMS NORTH KOREA APPARENTLY HAS NO THRESHOLD GOVERNING ITS SALES MR WOOLSEY SAID IT IS WILLING TO SELL TO ANY COUNTRY WITH THE CASH TO PAY HE NOTED THAT A MISSILE THE NORTH KOREANS ARE DEVELOPING THE NODONG 1 WILL HAVE A 620MILE RANGE THAT WOULD MAKE IT CAPABLE OF HITTING JAPAN AS WELL AS ALL OF SOUTH KOREA WHERE 35700 US TROOPS ARE STATIONED MR WOOLSEY SAID THAT THE CONFLICT WITH NORTH KOREA SHOWS THE FRAGILITY OF THE IAEA'S POWERS HE ADDED THAT THE US WILL NEED OUTSPOKEN AND FORTHCOMING ASSISTANCE FROM RUSSIA EUROPE AND JAPAN TO HELP THE IAEA UPHOLD ITS MANDATE THE IAEA WHICH WAS EMBARRASSED BY ITS FAILURE TO FIND IRAQ'S NUCLEAR WEAPONS PROGRAM HAS NEVER BEFORE ORDERED A NATION TO ACCEPT AN INSPECTION THE FIRST INDICATION OF THE EXTENT OF NORTH KOREA'S BIOLOGICAL WEAPONS PROGRAM CAME IN A STATEMENT RELEASED SEVERAL DAYS AGO BY RUSSIA'S FOREIGN INTELLIGENCE SERVICE THE SUCCESSOR TO THE SOVIET UNION'S KGB SEN JOHN GLENN CHAIRMAN OF THE SENATE COMMITTEE RELEASED A TRANSLATED VERSION OF THE RUSSIAN STATEMENT IT STATES NORTH KOREA IS PERFORMING APPLIED MILITARYBIOLOGICAL RESEARCH IN A WHOLE NUMBER OF UNIVERSITIES MEDICAL INSTITUTES AND SPECIALIZED RESEARCH INSTITUTES WORK IS BEING PERFORMED IN THESE RESEARCH CENTERS WITH INDUCERS OF MALIGNANT ANTHRAX CHOLERA BUBONIC PLAGUE AND SMALLPOX BIOLOGICAL WEAPONS ARE BEING TESTED ON THE ISLAND TERRITORIES BELONGING TO THE DPRK DEMOCRATIC PEOPLES REPUBLIC OF KOREA 9302250129 930225 NCR'S PLANT EXPANSION NEW YORK A UNIT OF NCR CORP WHICH IS OWNED BY AMERICAN TELEPHONE & TELEGRAPH CO SAID IT PLANS AN 81 MILLION EXPANSION OF ITS SEMICONDUCTORMAKING CAPACITY AT A COLORADO PLANT NCR MICROELECTRONIC PRODUCTS DIVISION IN COLORADO SPRINGS SAID THE EXPANSION AT ITS PLANT THERE WILL MORE THAN DOUBLE PRODUCTION CAPACITY PRODUCTION AT THE EXPANDED FACILITY IS EXPECTED TO BEGIN IN THE THIRD QUARTER OF 1994 NCR SAID IT'S EXPANDING CAPACITY BECAUSE OF INCREASED CUSTOMER DEMAND FOR SEMICONDUCTOR PRODUCTS THE COMPANY SAID IT ALSO PLANS TO INSTALL THIS YEAR 65 MILLION IN ADDITIONAL MANUFACTURING EQUIPMENT AT ITS FORT COLLINS COLO FABRICATION FACILITY AND SPEND AN ADDITIONAL 6 MILLION FOR NEW EQUIPMENT TO INCREASE TEST CAPACITY AND MAINTAIN PRODUCTIVITY LEVELS 9302250128 930225 LEISURE & ARTS BOOKSHELF YALE'S DR DOOM LOOKS INTO THE IMPOVERISHED FUTURE BY GEORGE GILDER IN A GIDDY MOMENT OF BRAVADO EARLY ON IN PREPARING FOR THE 21ST CENTURY RANDOM HOUSE 448 PAGES 25 YALE HISTORY PROF PAUL KENNEDY IMPLICITLY DENIES HIS LATEST WORK COULD HAVE BEEN WRITTEN BY A ROBOT AS IN HIS BESTSELLING RISE AND FALL OF THE GREAT NATIONS A TRACT ON AMERICAN DECLINE PUBLISHED IN THE WAKE OF THE SOVIET COLLAPSE AND ON THE EVE OF THE GULF WAR MR KENNEDY IS QUITE WRONG A ROBOT COULD READILY HAVE COMPOSED THIS RELENTLESS DOWNLOAD OF DOOMLADEN LORE FROM THE IVY LEAGUE JUST PROGRAM THE PROCESSOR TO ADD SOMBER MORALISMS TO THE FIRST PARAGRAPHS OF FRONTPAGE THINK PIECES IN THE NEW YORK TIMES OF FIVE YEARS AGO WHEN PEOPLE STILL BELIEVED DEVOUTLY IN THE GLOBALWARMING CRISIS IN THE CATACLYSMIC PORTENTS OF THE TRADE GAP IN THE IMPENDING COLLAPSE OF THE US MICROCHIP AND COMPUTER INDUSTRIES IN THE CREEPING SECRETIONS OF NUCLEAR WASTE AND IN THE INEXORABLE ASCENDANCY OF SEMISOCIALIST WELFARE STATES SUCH AS GERMANY AND SWEDEN MR KENNEDY'S WORK COULD WELL BE SUMMED UP BY THE PARODY HEADLINE END OF THE WORLD AT HAND WILL WIDEN GAP BETWEEN RICH AND POOR HIGHER TAXES NEEDED SINCE MR KENNEDY IS A BELOVED LIBERAL HISTORIAN IT IS UNREASONABLE TO ASK HIM TO KEEP UP WITH LEADINGEDGE SCIENCE TECHNOLOGY AND ECONOMICS AND IN PREPARING FOR THE 21ST CENTURY HE RETURNS TO THE 18TH CENTURY TO PRESENT HIMSELF AS A KIND OF MALTHUS REDUX A SECOND COMING OF PASTOR THOMAS MALTHUS MALTHUS DECLARED IN 1798 THAT THE POWER OF POPULATION HUGELY EXCEEDS THE POWER OF THE EARTH TO PRODUCE SUBSISTENCE AND FORECAST A GIGANTIC INEVITABLE FAMINE MALTHUS WAS ENTIRELY WRONG ON THAT POINT FOOD PRODUCTION HAS FAR OUTSTRIPPED POPULATION GROWTH EVER SINCE MALTHUS FAILED TO GRASP THAT IT IS NOT THE EARTH BUT MAN THAT PRODUCES FOOD BUT ACCORDING TO MR KENNEDY MALTHUS WAS MERELY OFF ON HIS TIMING BRITAIN ESCAPED FAMINE CHIEFLY BY AN EVENTUAL 19THCENTURY EMIGRATION OF SOME 20 MILLION PEOPLE WITHOUT THIS MASSIVE EMIGRATION TO THE EMPIRE MR KENNEDY AVERS THE BRITISH POPULATION WOULD HAVE BEEN 70 MILLION RATHER THAN 40 MILLION IN 1900 AND THE PREDICTED FAMINES WOULD HAVE OCCURRED YOU RECALL DON'T YOU THE EVER INTENSIFYING HUNGER PLAGUES IN GERMANY HOLLAND SWEDEN JAPAN AND OTHER INDUSTRIAL COUNTRIES WITHOUT LARGE EMPIRES BRITAIN WAS FURTHER SAVED FROM FAMINE BY AGRICULTURAL REVOLUTION WHICH ENLARGED THE OUTPUT OF BRITISH FARMS AND BY INDUSTRIAL REVOLUTION WHICH ENHANCED THE PRODUCTIVITY OF WORKERS INDUSTRY ALLOWED THE BRITISH TO FOIST MANUFACTURED BAUBLES ON THE COLONIES IN EXCHANGE FOR LIFESAVING IMPORTS OF FOOD THE SITUATION IS SIMILAR TODAY WITH BIOTECHNOLOGY AND ROBOTICS BREAKTHROUGHS IN STORE TO PLAY THE ROLE OF THE AGRICULTURAL AND INDUSTRIAL REVOLUTIONS OF THE 19TH CENTURY BUT ACCORDING TO MR KENNEDY THE PRESENT WORLD CANNOT ACHIEVE A SIMILAR DELIVERANCE THERE IS NO OTHER AVAILABLE PLANET TO COLONIZE AND EXISTING RICH NATIONS WILL NOT ACCEPT MASSES OF REFUGEES FROM THE THIRD WORLD INSTEAD OF EMIGRATION ACCORDING TO MR KENNEDY THE MODERN WORLD GIVES US MULTINATIONAL CORPORATIONS THAT EXPLOIT AND POLLUTE THIRD WORLD COUNTRIES AND UNDERMINE THE PRECIOUS TAXING POWERS OF THE NATION STATE THE WORLD IS LEFT WITH THE PROMISE OF A NEW AGRICULTURAL REVOLUTION IN BIOTECH AND A NEW INDUSTRIAL REVOLUTION IN ROBOTICS ACCORDING TO MR KENNEDY BIOTECH WILL DO NO GOOD BECAUSE THE CENTER OF BIOTECH PRODUCTION IS IN THE RICH COUNTRIES WHILE THE THREAT OF FAMINE IS IN THE THIRD WORLD BIOTECH MAY EVEN EXACERBATE THE PROBLEM BY SUPPLANTING NATURAL COMMODITIES NOW PRODUCED BY PEASANT FARMERS ROBOTICS TO MR KENNEDY PRESENTS A SIMILARLY GRIM PROSPECT NOT ONLY ARE MOST ROBOTS IN JAPAN BUT THEY THREATEN TO DEVALUE THE ONE ASSET OF THE THIRD WORLDITS THRONGS OF LABOR PREPARING FOR THE 21ST CENTURY ENDS WITH A LONG SECTION ANALYZING THE IMPACT OF LIKELY DISASTERS ON DIFFERENT COUNTRIES MR KENNEDY'S GENERAL CONCLUSION IS THAT THE RICH ARE GETTING RICHER AND THE POOR POORER HE APPEARS INCAPABLE OF IMAGINING HOW ANY COUNTRY NOT ALREADY RICH COULD BECOME RICH EXCEPT POSSIBLY THROUGH FOREIGN AID SHORTAGE OF CAPITAL IS SEEN AS A PROHIBITIVE PROBLEM BY THAT STANDARD OF COURSE NO POOR NATION COULD EVER HAVE ESCAPED POVERTY FOR HIM THE ONLY ANSWERS ARE IN YET MORE REDISTRIBUTIVE SOCIALISM TAXATION REGULATION AND BUREAUCRACY HE CONTENDS THAT THE CHINESE AND INDIANS COULD ATTAIN A WESTERN STANDARD OF LIVING ONLY AT THE COST OF ECOLOGICAL RUIN MR KENNEDY FAILS TO SEE THAT SOCIALIST COUNTRIES BY BARRING THE REDEMPTIVE SURPRISES OF HUMAN CREATIVITY WREAK ENVIRONMENTAL HAVOC WHEREVER THEY HOLD POWER YOU HAVE ONLY TO CONSIDER AFRICA OR EASTERN EUROPE BUT CAPITALIST GROWTH IS BASED ON AN ENVIRONMENTALLY BENIGN REPLACEMENT OF MATTER AND ENERGY WITH KNOWLEDGE AND INGENUITY EVERY YEAR ENTREPRENEURIAL FORCES YIELD MORE ENERGYEFFICIENT AND INFORMATIONINTENSIVE MEANS OF PRODUCTION MADE OF THE THREE MOST COMMON SUBSTANCES IN THE EARTH'S CRUSTSILICON OXYGEN AND ALUMINUMMICROCHIPS HAVE BEEN THE DRIVING FORCE OF CAPITALIST GROWTH FOR 20 YEARS MICROCHIP TECHNOLOGY IS NOW CONVERGING WITH FIBER OPTICS ALSO ESSENTIALLY MADE OF SILICON TO CREATE A NEW INFORMATION ECONOMY IN THE FORM OF COMPUTERS LINKED WITH FIBER OPTICS ALLOWING TELECOMMUTING HOME SCHOOLS AND REMOTE HEALTH CARE SAND AND GLASS REPLACE OIL AND COAL HOSPITAL BEDS AND CENTRALIZED MEDICINE INEFFECTIVELY CENTRALIZED SCHOOLS AND COLLEGES ENVIRONMENTALLY WASTEFUL AGRICULTURE AND CULTURALLY EROSIVE TELEVISION AND ENTERTAINMENT COMBINED WITH BIOTECH THESE HUMAN ADVANCES ARE PRECISELY TARGETED TO OVERCOME MOST OF THE PROBLEMS THAT MR KENNEDY BEMOANS AND MISUNDERSTANDS YET IN HIS PERNICIOUS CONDEMNATION OF ANY TOOLS THAT MAY EXPAND THE GAP BETWEEN THE RICH AND POOR MR KENNEDY SEES INNOVATION AS A THREAT RATHER THAN A SOLUTION ANY OF THE TOOLS BY WHICH HUMAN BEINGS ESCAPED THE MUCK TO RULE THE WORLD INITIALLY INCREASED THE GAP BETWEEN THE INVENTORS OF THE TOOLS AND THE RUN OF THE POPULATION THAT'S LIFE HUMAN ADVANCES ARE ALWAYS THE RESULT OF HEROIC INDIVIDUAL EFFORT AND SACRIFICE WITH THE VERY PEOPLE WHO HAVE PROVEN THEIR ABILITY TO CREATE WEALTH PUT IN CHARGE OF REINVESTING IT TAX THE SURPLUS AWAY AND GIVE IT TO GOVERNMENT AND YOU HAVE STAGNATION AND DECLINE MR KENNEDY'S POSITION WOULD HAVE HALTED NEARLY ALL HUMAN DEVELOPMENT THROUGHOUT HISTORY EQUALLY OBTUSE IS HIS BELIEF THAT TECHNOLOGY DESTROYS JOBS DURING THE PAST 30 YEARS THE US HAS LED THE WORLD BOTH IN TECHNOLOGY AND IN JOBS DEPLOYING THREE TIMES AS MUCH COMPUTER POWER PER CAPITA AS JAPAN OR EUROPE THE US CREATED SOME 35 MILLION NEW JOBS AUTOMATION IS ITS OWN REMEDY BY ENHANCING THE PRODUCTIVITY OF WORKERS TECHNOLOGY MAKES THEM MORE EMPLOYABLE AND THUS CREATES MORE EMPLOYMENT BY CREATING WEALTH TECHNOLOGY ENDOWS NEW WORK WHETHER AT THE TIME OF MALTHUS OR IN ANY OTHER ERA THE PROSPECTS OF HUMANITY ALWAYS SEEM DIRE TO PEOPLE WHO CANNOT IMAGINE THE EXPONENTIAL BOUNTIES OF TECHNOLOGICAL ADVANCE HUMAN CREATIVITY ALWAYS COMES AS A SURPRISE TO US IF IT DIDN'T WE COULD PLAN IT AND IT WOULDN'T BE NEEDED HUMAN BEINGS NOW MASTER THE FIRMAMENT AND OVERRUN THE PLANET ONLY BECAUSE WE ARE THE SUPREME CREATORS OF NEW TOOLS IF NEW TOOLS ARE EXCLUDED FROM THE FORECAST THE HUMAN RACE WILL OBVIOUSLY HAVE TO PACK UP AND GO HOME TO YALE OR SOME OTHER ACADEMIC EDEN TO WORSHIP CONDOMS ABORTIONS AND OTHER APPROPRIATE TECHNOLOGY UNTIL THE ENTROPIC END THE FACT IS HOWEVER THAT THE POWERS OF MAN THE TOOLMAKER ARE FAR GREATER TODAY THAN AT ANY OTHER TIME IN HUMAN HISTORY THE TECHNOLOGIES OF COMPUTERS AND COMMUNICATIONS WILL EACH ADVANCE ROUGHLY A MILLIONFOLD IN COST EFFECTIVENESS IN THE NEXT 10 YEARS THEY MAKE HASH OF ALL LINEAR PROJECTIONS OF ENVIRONMENTAL DISASTER BIOTECH BOGGLES ALL SPECULATIONS ABOUT FOOD SCARCITY AND POPULATION EXPLOSION THE DANGER COMES FROM AN ENERVATED ACADEMY THAT IS FOISTING ITS NIHILIST FUTILITIES AND SOCIAL FADS ON THE WORLD MR GILDER IS A FELLOW AT THE DISCOVERY INSTITUTE IN SEATTLE 9302250127 930225 PEPPERAND SALT BUT JUST HANG AROUND FOLKS WHO ARE OLDER AND HAVE THE PICK OF THE LITTER ACCOUNTANT SUM WORSHIPPER 9302250124 930225 TECHNOLOGY ADVANCED MICRO SONY MAKE STRONGER CHIP FOR CORDLESS PHONES SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SAID IT AND JAPAN'S SONY CORP HAVE DEVELOPED A CHIP THEY HOPE WILL BOOST THE CONSUMER MARKET FOR DIGITAL CORDLESS PHONES ADVANCED MICRO SAID ITS NEW CHIP WILL DO THE WORK NOW DONE BY SEVERAL CHIPS USED IN DIGITAL PHONES CURRENTLY SOLD BUT AT A LOWER COST DIGITAL CORDLESS PHONES PROVIDE BETTER SOUND QUALITY OVER LONGER DISTANCES BUT GENERALLY AT A COST SEVERAL TIMES HIGHER THAN THAT OF CONVENTIONAL PHONES USING THE OLDER ANALOG CIRCUITRY A SPOKESMAN FOR ADVANCED MICRO SAID PROTOTYPES OF THE CHIP CALLED CT2 PHOX CONTROLLER CURRENTLY SELL FOR 40 EACH BUT THAT PRICE IS EXPECTED TO DROP ONCE VOLUME PRODUCTION BEGINS AROUND THE END OF 1993 HE WOULD NOT ESTIMATE HOW MUCH THE PRICE WOULD FALL CITING COMPETITIVE CONSIDERATIONS NOR WOULD HE SAY HOW SALES OF THE CHIP WOULD AFFECT THE COMPANY'S EARNINGS THE CHIP IS CURRENTLY BEING TESTED FOR USE BY SOME ELECTRONICS COMPANIES WHICH THE SPOKESMAN WOULDN'T IDENTIFY ADVANCED MICRO EXPECTS THE CHIP WILL INITIALLY BE USED IN EUROPE ASIA AND SOUTH AMERICA PRIMARILY BECAUSE MANY PARTS OF THOSE AREAS HAVE ADOPTED TECHNICAL SPECIFICATIONS CALLED CT2 ON WHICH ITS NEW CHIP IS BASED THE SPOKESMAN SAID IN EUROPE A PUBLIC TELEPHONE NETWORK CALLED TELEPOINT IS BASED ON CT2 THE COMPANY ALSO EXPECTS CT2 TO EVENTUALLY FIND ACCEPTANCE IN THE US HE SAID THE NEW CHIP IS THE FIRST IN A FAMILY OF RELATEDCHIP PRODUCTS FOR ADVANCED MICRO WE ARE EXPECTING TO BE A MAJOR PLAYER IN THE CORDLESS OR WIRELESS MARKET HE SAID RICHARD KOHN AN ANALYST AT INSTAT INC A MARKET RESEARCH FIRM SAID SALES OF ADVANCED MICRO'S CHIP DEPEND ON THE WIDESPREAD ADOPTION OF THE CT2 SPECIFICATIONS WHICH CONTROL THE TECHNOLOGY USED IN LINKING HANDSETS WITH BASE UNITS OF THE PHONES CT2 CURRENTLY COMPETES IN EUROPE WITH ANOTHER SET OF SPECIFICATIONS CALLED DIGITAL EUROPEAN CORDLESS TELECOMMUNICATIONS OR DECT 9302250123 930225 ENTERGY UNIT TO REDEEM BONDS NEW ORLEANS ENTERGY CORP SAID ITS NEW ORLEANS PUBLIC SERVICE INC UNIT ON JULY 1 PLANS TO REDEEM 25 MILLION PRINCIPAL AMOUNT OF ITS BONDS 11 SERIES DUE JULY 1 1996 NOPSI PLANS TO PAY A REDEMPTION PRICE OF 102 OF THE PRINCIPAL AMOUNT 9302250122 930225 MORGAN STANLEY TO FORM 3 FUNDS FOR SMALL INVESTORS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY IS FINALLY GOING TO MANAGE MONEY FOR THE MASSES MORGAN STANLEY ASSET MANAGEMENT A UNIT OF MORGAN STANLEY GROUP INC HAS FORMED THREE RETAIL MUTUAL FUNDS THAT IT IS STARTING TO SELL TO THE PUBLIC ONE FUND INVESTS IN GLOBAL STOCKS ONE INVESTS IN GLOBAL BONDS AND ONE IS A MONEY MARKET FUND THE MINIMUM INVESTMENT IN THE FUNDS IS 1000 MORGAN STANLEY MANAGES 25 BILLION IN ASSETS BUT MOSTLY FOR PENSION FUNDS OR VERY WEALTHY INDIVIDUALS ONLY IN 1989 DID THE VENERABLE WALL STREET FIRM BEGIN MANAGING MUTUAL FUNDS AND THOSE WERE OUT OF THE REACH OF MOST PEOPLE WITH MINIMUM INVESTMENTS OF 250000 TO 500000 THE FUNDS WERE AIMED AT INSTITUTIONS BUT THE FASTEST GROWTH IN MONEY MANAGEMENT IS NOW IN SELLING MUTUAL FUNDS TO SMALL INVESTORS THE TRADITIONAL PENSION FUND BUSINESS HAS STOPPED GROWING THE SMALLINVESTOR SEGMENT OF THE MUTUAL FUND BUSINESS GIVEN ITS SIZE AND CONTINUED STRONG GROWTH IS THE LOGICAL PLACE TO BE SAID WARREN OLSEN PRINCIPAL OF MORGAN STANLEY ASSET MANAGEMENT I THINK IT'S VERY INTERESTING HOW A LOT OF THESE OLDLINE FIRMS WERE RELUCTANT TO GET INTO THE MUTUAL FUND BUSINESS BUT NOW ARE LAUNCHING FUNDS SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS ASSOCIATING YOURSELF WITH THIS BUSINESS OF HELPING LITTLE INVESTORS WASN'T SOMETHING YOU WOULD MENTION IN POLITE COMPANY IN PAST YEARS SAID MR PHILLIPS COULD MORGAN STANLEY HAVE DONE THIS 20 YEARS AGO YES COULD THEY HAVE HAD A FULL LINE OF MUTUAL FUNDS AND BE IN COMPETITION WITH FIDELITY INVESTMENTS YES BUT THEY DIDN'T ALTHOUGH MORGAN STANLEY IS COMING LATE TO THE PARTY MANY OTHER WALL STREET FIRMS ARE ALREADY RUNNING BILLIONS OF DOLLARS IN MUTUAL FUNDS FOR SMALL INVESTORS SUCH FIRMS INCLUDE MERRILL LYNCH & CO AND DEAN WITTER DISCOVER THE GLOBAL STOCK FUND WHICH CAN INVEST IN THE US OR FOREIGN MARKETS WILL BE MANAGED BY A TEAM INCLUDING BARTON BIGGS MORGAN STANLEY'S CHIEF STOCK GURU MR BIGGS ALSO HEADS A TEAM RUNNING MORGAN STANLEY EMERGING MARKETS FUND A CLOSEDEND FOREIGNSTOCK FUND THAT HAD A GAIN OF 1386 IN 1992 DAYTODAY MANAGEMENT OF THE FUND WILL BE DONE BY PAUL JACKSON A VICE PRESIDENT AT MORGAN STANLEY BOTH THE STOCK AND BOND FUNDS WILL BE RUN BY MANAGERS WHO CURRENTLY MANAGE INSTITUTIONAL ASSETS AT MORGAN STANLEY FOREIGN STOCK MARKETS HAVE LAGGED BEHIND THE US STOCK MARKET FOR THE PAST FIVE YEARS WHICH COULD REDUCE INVESTOR DEMAND FOR THE NEW FUNDS WE'RE LOOKING TO BUILD A RETAIL MUTUAL FUND BUSINESS MR OLSEN SAID WE'RE GOING TO BE IN IT FOR THE LONG HAUL MR OLSEN SAID THAT HE EXPECTS OVERSEAS MARKETS TO BOUNCE BACK AND OUTPERFORM THE US MARKETS THE STOCK AND BOND FUNDS ARE SOLD THROUGH BROKERS FOR EITHER A 475 COMMISSION KNOWN AS A LOAD OR A 1 ANNUAL DISTRIBUTION FEE ON TOP OF FUND EXPENSES 9302250121 930225 BUSINESS BRIEF LIFE PARTNERS GROUP INC INSURER PLANS TO REATTEMPT INITIAL PUBLIC OFFER OF STOCK LIFE PARTNERS GROUP INC SAID IT WILL TRY AGAIN TO COMPLETE AN INITIAL PUBLIC OFFERING OF STOCK THE DALLAS INSURANCE HOLDING COMPANY SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT WILL OFFER 114 MILLION COMMON SHARES PROCEEDS WILL BE USED TO REDEEM 122 MILLION OF PREFERRED STOCK OUTSTANDING AND TO REDUCE SENIOR DEBT LIFE PARTNERS WAS FORMED IN 1990 WHEN HICKS MUSE & CO A DALLAS INVESTMENT FIRM ACQUIRED THREE INSURANCE COMPANIES THE COMPANY TRIED TO GO PUBLIC LAST APRIL BUT WITHDREW THE PROPOSED OFFERING IN JULY BECAUSE OF UNFAVORABLE MARKET CONDITIONS THE OFFERING WILL BE UNDERWRITTEN BY A GROUP LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9302250119 930225 WHY YOU SHOULDN'T DO YOUR TAXES THIS YEAR BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL SOMETIMES IT'S BETTER NOT TO DO IT YOURSELF EVEN IF YOU'VE READ ALL THE BOOKS AND BOUGHT THAT GREAT NEW COMPUTER SOFTWARE YOU ACTUALLY KNOW HOW TO USE HIRING A PROFESSIONAL TO PREPARE YOUR TAX RETURN MAY BE THE RIGHT THING TO DO THIS YEAR THE LIST OF LIFE EVENTS THAT PROFESSIONALS SAY MAY NECESSITATE HELP AT TAX TIME INCLUDES RETIREMENT DIVORCE OR DEATH OF A SPOUSE A LARGE INHERITANCE THE SALE OF A HOME AND MOVING FROM ONE STATE TO ANOTHER OWNING A BUSINESS CREATES COMPLICATIONS OF ITS OWN A PROFESSIONAL CAN HELP YOU WORK THROUGH THE RULES TO YOUR BEST TAX ADVANTAGE SAYS THOMAS J HAKALA A PARTNER IN THE PERSONAL FINANCIAL PLANNING PRACTICE OF ACCOUNTANTS KPMG PEAT MARWICK IT PRETTY MUCH PAYS FOR ITSELF THERE ARE MORE MUNDANE CONSIDERATIONS TOO LOTS OF PEOPLE ARE WILLING TO PAY ME SO THEY DON'T HAVE TO SPEND TWO WEEKENDS WITH PAPERS ALL OVER THEIR DINING ROOM TABLE SAYS DOUGLAS STIVES A CERTIFIED PUBLIC ACCOUNTANT WITH THE RED BANK NJ FIRM CURCHIN & CO IF YOU DECIDE TO PAY SOMEONE TO PREPARE YOUR RETURN THIS YEAR YOU WON'T BE ALONE THE INTERNAL REVENUE SERVICE ESTIMATES THAT JUST UNDER HALF OF ALL RETURNS FILED ARE DONE BY PAID PREPARERS THERE MAY BE EVEN MORE SUCH RETURNS NEXT YEAR ASSUMING THAT SOME FORM OF PRESIDENT CLINTON'S TAX PLAN IS ENACTED TAX PREPARERS SAY THEIR BUSINESS TYPICALLY INCREASES WHEN LEGISLATION IS PASSED THERE ARE THREE BASIC TYPES OF PROFESSIONAL HELP COMMERCIAL PREPARERS SUCH AS H&R BLOCK ENROLLED AGENTS WHO HAVE WORKED FOR THE IRS OR PASSED AN IRSADMINISTERED EXAM AND CERTIFIED PUBLIC ACCOUNTANTS AND ATTORNEYS WHO SPECIALIZE IN TAXES EVEN THE MOST SOPHISTICATED PROFESSIONALS ACKNOWLEDGE THAT TAXPAYERS WHO HAVE MOSTLY SALARIED INCOME PLUS A SMALL AMOUNT IN DIVIDENDS AND INTEREST AND WHOSE ONLY SIGNIFICANT DEDUCTION IS MORTGAGE INTEREST CAN OFTEN PREPARE THEIR OWN RETURNS OR WOULD BE WELL SERVED BY A COMMERCIAL TAX PREPARATION FIRM SOMEONE WHO HAS TAKEN A ONEWEEK COURSE CAN PREPARE 80 OF THE RETURNS IN AMERICA SAYS MR HAKALA OF PEAT MARWICK WHO IS BOTH AN ATTORNEY AND A CPA THE OTHER 20 REQUIRE MORE HELP ALTHOUGH H&R BLOCK WHICH PREPARES ABOUT 14 OF ALL RETURNS FILED SAYS IT HAS EXPERTS AVAILABLE WHO CAN HANDLE ALL KINDS OF TAX RETURNS THOMAS M BLOCH PRESIDENT AND CHIEF EXECUTIVE ACKNOWLEDGES THAT THE FIRM'S TARGET MARKET IS THE MIDDLE INCOME FAMILY INDEED MANY BLOCK CLIENTS FILE THE SHORTER 1040A FORM OR THE ULTRASIMPLE 1040EZ ENROLLED AGENTS AND CPAS AND ATTORNEYS TYPICALLY HANDLE MORE COMPLICATED INDIVIDUAL RETURNS AND SMALL BUSINESSES AND PARTNERSHIPS INDEED SOME PROFESSIONALS RECOMMEND THAT ANYONE WITH INCOME OVER 100000 SEEK YEARROUND TAXPLANNING ADVICE IN ADDITION TO HELP WITH THEIR ANNUAL RETURNS PROPER PLANNING CAN'T BE DONE ON A ONCEAYEAR BASIS SAYS MICHAEL JANICKI A TAX PARTNER WITH ACCOUNTANTS ARTHUR ANDERSEN & CO IN NEW YORK HE NOTES THAT TAXPAYERS MAY HAVE TO DECIDE HOW BIG A MORTGAGE TO TAKE OR WHETHER CHARITABLE CONTRIBUTIONS SHOULD BE IN CASH OR APPRECIATED PROPERTY FOR EXAMPLE WHICH WILL HAVE TAX CONSEQUENCES WHEN THEY FILE THEIR RETURNS THERE'S ALSO THE ALTERNATIVE MINIMUM TAX OR AMT WHICH CAN REQUIRE A WHOLE DIFFERENT SET OF CALCULATIONS FOR PEOPLE WITH LARGE DEDUCTIONS RELATIVE TO INCOME MANY OF THE COMPUTER PROGRAMS ON THE MARKET CAN TAKE TAXPAYERS THROUGH MOST CALCULATIONS BUT IT TAKES TIME AND A FAIR AMOUNT OF COMPUTER LITERACY JOHN HEWITT PRESIDENT OF JACKSONHEWITT TAX SERVICES IN VIRGINIA BEACH VA SAYS MANY TAXPAYERS DON'T TAKE ALL THE DEDUCTIONS THEY'RE ENTITLED TO BECAUSE THEY DON'T KNOW WHAT'S AVAILABLE TO THEM MOST COMMON OMISSIONS HE SAYS ARE TRANSPORTATION FOR MEDICAL CARE AND AUTOMOBILE USE FOR CHARITABLE WORK BUSINESS OWNERS WILL FIND THERE ARE DIFFERENT ACCOUNTING METHODS TO CHOOSE FROM AND COMPLICATED RULES REGARDING DEPRECIATION THE RECENTLY DIVORCED MAY HAVE TO CONSIDER THE TAX CONSEQUENCES OF SEPARATION OF ASSETS THE RECENTLY RETIRED OR EVEN THOSE WHO CHANGED JOBS OFTEN HAVE RETIREMENT PLAN PAYOUTS PEOPLE WHO MOVED FROM ONE STATE TO ANOTHER MAY HAVE TO FILE TWO STATE RETURNS TAX PROFESSIONALS SAY IT'S CRITICAL TO UNDERSTAND WHAT WENT INTO THE PROCESS PEOPLE GET AN INQUIRY FROM THE IRS AND THEY DON'T KNOW WHERE TO START SAYS MR STIVES THE NEW JERSEY ACCOUNTANT WHAT YOU'D LIKE IS FOR YOUR RETURN NOT TO BE QUESTIONED IN THE FIRST PLACE IF YOU ARE AUDITED AN ENROLLED AGENT CPA OR TAX ATTORNEY CAN REPRESENT YOU A COMMERCIAL PREPARER MAY ACCOMPANY YOU TO THE AUDIT THE COST OF PAID HELP TYPICALLY INCREASES WITH THE COMPLEXITY OF THE RETURN H&R BLOCK'S AVERAGE FEE LAST YEAR WAS ABOUT 53 TAX PREPARATION FOR A SMALL BUSINESS OWNER WHO GOES TO A BIG ACCOUNTING FIRM CAN BE CLOSE TO 1000 ONE WAY TO CUT THE COST PARTICULARLY FOR THOSE WHO LIKE WORKING WITH NUMBERS IS TO PREPARE THE RETURN YOURSELF AND TAKE IT TO A PROFESSIONAL FOR REVIEW MANY WILL CHARGE ONLY A SMALL FEE AND SOME WON'T CHARGE AT ALL FOR THE REVIEW AND IF THERE'S A REASON FOR THEM TO REDO THE RETURN THE FEE WILL BE CONSIDERABLY LOWER BECAUSE MUCH OF THE WORK HAS ALREADY BEEN DONE HOW DO YOU FIND THE RIGHT PERSON IT'S IMPORTANT TO NOTE THAT WHILE SOME PREPARERS HAVE A GREAT DEAL OF TRAINING AND ONE OR MORE PROFESSIONAL DESIGNATIONS ANYONE CAN HANG OUT A SHINGLE AS A TAX PREPARER LOOK FOR SOMEONE WHO'S IN BUSINESS ALL YEAR ROUND WHO WILL BE THERE IF THERE ARE QUESTIONS OR AN AUDIT AFTER APRIL 15 AND LOOK FOR SOMEONE WHO USES A COMPUTER THESE DAYS PROFESSIONALS SAY YOU CAN'T PREPARE A RETURN WITHOUT ONE CHECK PERSONAL REFERENCES TOO SAYS MR HAKALA OF PEAT MARWICK IT GIVES YOU CONFIDENCE THAT THE PREPARER HAS SOMEBODY WHO'S NOT HIS MOTHER WHO SAYS HE DOES GOOD WORK 9302250118 930225 TECHNOLOGY L' WORD IS OFFICIAL IBM SAYS CUTBACKS WILL INCLUDE LAYOFFS TRADITIONAL NICETIES ARE HISTORY AS CORPORATE STAFF AWAITS LOSS OF SOME 500 POSITIONS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP FINALLY MADE IT OFFICIAL ITS 1993 CUTBACKS WILL INCLUDE THE COMPUTER GIANT'S FIRST LAYOFFS IN HALF A CENTURY THE NEWS CAME AS IBM SAID IT WOULD SLICE ITS CORPORATE STAFF BY 500 POSITIONS OR NEARLY 11 SOME OF THESE CUTS WILL COME THROUGH LAYOFFS IBM SAID THE FIRST TIME THE COMPUTER GIANT HAS CALLED SUCH MOVES A CERTAINTY SEPARATELY IBM ACKNOWLEDGED THAT TOTAL JOB CUTS THIS YEAR LIKELY WILL EXCEED ITS PREVIOUS ESTIMATE OF 25000 A SPOKESMAN SAID IBM DOESN'T YET HAVE A NEW ESTIMATE HOWEVER HE NOTED THE COMPANY ISN'T EXPECTING ANOTHER CHARGE ON TOP OF A 31 BILLION PRETAX CHARGE IT TOOK IN THE FOURTH QUARTER TO ACCOUNT FOR THE ORIGINAL CUTS ANALYSTS HAVE ESTIMATED THAT IBM COULD SLICE AS MANY AS 40000 JOBS THIS YEAR THAT SORT OF INCREASE PROBABLY WOULD INVOLVE AN ADDITIONAL CHARGE IBM HAD 301542 EMPLOYEES WORLDWIDE ON DEC 31 BIG BLUE'S FAMOUS NOLAYOFF TRADITION HAS BEEN EFFECTIVELY DEFUNCT SINCE DEC 15 WHEN CHAIRMAN JOHN AKERS PREDICTED THAT LAYOFFS WOULD BE NEEDED IN IBM'S 1993 JOBCUTTING PROGRAM THE LATEST REDUCTIONS WHICH INCLUDE MANY CUTS AT THE COMPANY'S HEADQUARTERS IN ARMONK NY ARE PART OF THAT PROGRAM THE SPOKESMAN SAID OVER THE PAST FEW WEEKS VARIOUS OPERATIONS OF IBM HAVE BEEN PROVIDING DETAILS ON HOW THEY WILL CUT THEIR SHARE OF THE 25000 TARGETED EMPLOYEES IN MANY CASES THE COMPANY SAID LAYOFFS ARE EITHER POSSIBLE OR LIKELY MOST IBM UNITS APPEAR TO BE HOLDING OFF LAYOFF ANNOUNCEMENTS UNTIL THEY DETERMINE HOW MANY EMPLOYEES WILL ACCEPT INCENTIVES TO LEAVE VOLUNTARILY YESTERDAY'S ANNOUNCEMENT DISPENSES WITH THAT NICETY POSSIBLY BECAUSE IBM'S CORPORATE STAFF REPORTS TO MR AKERS WHO WANTS TO SEND A SIGNAL ABOUT THE SERIOUSNESS OF IBM'S COSTCUTTING IT WAS OUR CHOICE TO BE AS DIRECT AS WE POSSIBLY CAN BE SO THAT OUR OWN PEOPLE DON'T MISUNDERSTAND WHAT'S GOING ON SAID THE SPOKESMAN AS IN OTHER PARTS OF IBM THE CORPORATE CUTBACKS INCLUDE INDUCEMENTS TO DEPART AMONG THE INCENTIVES UP TO A YEAR'S PAY A YEAR OF COMPANYPAID MEDICAL BENEFITS CAREER COUNSELING AND A RETRAINING ALLOWANCE DESPITE SUCH MEASURES HOWEVER IBM SAID THAT LAYOFFS WILL BE REQUIRED TO REACH ITS TARGET OF 500 JOB CUTS ALTHOUGH IBM'S BUSINESS UNITS ALL SET THEIR OWN CUTBACK SCHEDULES THUS MAKING ANY FIRM STATEMENT DIFFICULT THE CORPORATE CUTS WILL PROVIDE IBM'S FIRST LAYOFFS IN A HALFCENTURY THE SPOKESMAN SAID HOWEVER IBM PROBABLY WON'T ANNOUNCE THE LAYOFFS WHEN THEY ACTUALLY OCCUR WHICH WILL LIKELY BE IN MAY HE ADDED CORPORATE CUTBACKS INCLUDE 150 CUTS FROM THE COMPANY'S 1000MEMBER CORE STAFF AND 350 CUTS FROM THE 3700MEMBER STAFF THAT PROVIDES BILLABLE SERVICES SUCH AS TRAINING TO IBM'S VARIOUS BUSINESSES 9302250117 930225 POLITICS & POLICY CLINTON PLAN'S AIM TO BALANCE PAIN REGIONALLY MISSES BULL'SEYE BY WHAT MAY BE A CRUCIAL INCH BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TO JUDGE BY THE WAY HIS ECONOMIC PLAN HITS DIFFERENT REGIONS OF THE COUNTRY PRESIDENT CLINTON MAY HAVE LEFT ARKANSAS AND MOVED TO WASHINGTON AT JUST THE WRONG TIME ARKANSAS WOULD ENJOY MORE ECONOMIC GROWTH FROM THE PROGRAM THAN ANY OTHER STATE ACCORDING TO A COMPUTERAIDED ANALYSIS OF THE PLAN'S IMPACT ON STATES AND REGIONS JUST COMPLETED BY REGIONAL FINANCIAL ASSOCIATES INC AN ECONOMIC CONSULTING FIRM BY CONTRAST MR CLINTON'S NEW HOME WASHINGTON DC WOULD SUFFER A DEEPER CUT IN ECONOMIC GROWTH THAN ANYWHERE ELSE IN THE NATION THE DICHOTOMY BETWEEN ARKANSAS AND WASHINGTON ILLUSTRATES A POLITICALLY CRUCIAL FACT ABOUT THE PRESIDENT'S BROAD PROGRAM OF TAX INCREASES NEW PROGRAMS AND SPENDING CUTS DESPITE A BIG EFFORT BY THE CLINTON TEAM TO BALANCE OUT ITS IMPACT THE PROGRAM HAS AN UNEVEN EFFECT FROM REGION TO REGION AN EFFECT THAT COULD SPARK A POLITICAL BACKLASH THE STATEBYSTATE ANALYSIS BY REGIONAL FINANCIAL FOR INSTANCE SUGGESTS THAT THE PLAN WOULD BE KINDEST TO STATES IN THE SOUTH AND INDUSTRIAL MIDWEST WHICH WOULDN'T BE ESPECIALLY HARDHIT BY NEW INCOME AND ENERGY TAXES OR CUTS IN DEFENSE BUT WHICH COULD BENEFIT FROM NEW CLINTON INVESTMENT TAX INCENTIVES THE STATES HIT HARDEST TEND TO BE IN THE MIDATLANTIC REGION WHICH WOULD GET ZINGED BY BOTH HIGHER INCOME TAXES ON THE WELLTODO AND CUTS IN GOVERNMENT PROGRAMS AND PAYROLLS THE PLAN SEEMS TO BE A WASH FOR THE BIG STATES OF CALIFORNIA AND TEXAS WHILE NEW YORK APPEARS TO BE A SLIGHT LOSER IN THE LONG RUN ALL TOLD THE REGIONAL SWINGS AREN'T DRAMATIC AND PREDICTING SUCH EFFECTS ISN'T AN EXACT SCIENCE STILL CLINTON AIDES ARE DEEPLY CONCERNED THAT EVEN A PERCEPTION THAT SOME AREAS ARE HIT HARDER THAN OTHERS COULD BE A SERIOUS POLITICAL PROBLEM EVEN IF THE PERCEPTION ISN'T BORN OUT BY HARDHEADED ANALYSIS EVERYBODY IN THE COUNTRY WILL FEAR THAT THEY ARE GETTING HIT HARDER THAN ANYBODY ELSE SAYS DAVID WYSS AN ANALYST AT DRI/MCGRAWHILL IN LEXINGTON MASS PEOPLE ALWAYS FEEL THAT THEY ARE HURT THE MOST CLINTON ADVISERS ARE PARTICULARLY WORRIED BECAUSE SOME FARMSTATE LAWMAKERS ARE GRUMBLING THAT THE PLAN WITH ITS COMBINATION OF AN ENERGY TAX CUTS IN AGRICULTURAL PROGRAMS AND NEW USER FEES FOR FEDERAL SERVICES HITS RURAL AREAS HARDEST AGRICULTURE TAKES THE BIGGEST PERCENTAGE CUT OF ANY PART OF THE BUDGET COMPLAINS SEN KENT CONRAD A DEMOCRAT FROM NORTH DAKOTA AND YOU COUPLE THAT WITH THE FACT THAT WE'RE FIFTH IN PERCAPITA CONSUMPTION OF ENERGY AND THAT GOES TO THE TWO MAIN PILLARS OF OUR ECONOMY AN UPRISING BY FARMSTATE LAWMAKERS ON STRATEGIC CONGRESSIONAL COMMITTEES COULD SPELL DEEP TROUBLE SENSING JUST SUCH A POTENTIAL PROBLEM MR CLINTON ACTUALLY DIDN'T MAKE ALL THE AGRICULTURAL CUTS HIS OWN DEFICIT HAWKS WANTED AT ONE WHITE HOUSE MEETING A PARTICIPANT RECALLS DEPUTY BUDGET DIRECTOR ALICE RIVLIN WAS LISTING POTENTIAL CUTS IN AGRICULTURAL PROGRAMS AND QUIPPED THAT MR CLINTON WOULD BE ABLE TO CLAIM THAT HIS ADMINISTRATION IS GOING TO END WELFARE AS WE KNOW IT FOR FARMERS MR CLINTON RESPONDED ANGRILY THAT HE DIDN'T AGREE WITH THE JOKE AND SOME CUTS WERE DISCARDED BUT IN REALITY THE IMPACT OF THE OVERALL CLINTON PACKAGE IN RURAL AMERICA OR ANY PART OF THE NATION ISN'T AS SIMPLE AS SUCH A TUG OF WAR SUGGESTS THAT'S BECAUSE CLINTON ADVISERS LABORED TO MAKE THEIR PLAN A BALANCING ACT IN WHICH THE GOODIES AND THE PAIN WERE SPREAD AROUND IN DIFFERENT COMBINATIONS TO VARIOUS PARTS OF THE COUNTRY FARM STATES ARE INDEED HIT BY HIGHER ENERGY COSTS AND SOME 5 BILLION IN CUTS AND ADDED USER FEES FOR AGRICULTURAL PROGRAMS OVER FIVE YEARS BUT THOSE BURDENS TEND TO BE OFFSET BECAUSE RURAL STATES HAVE LOWER AVERAGE INCOMES AND THEREFORE WON'T BE HIT VERY HARD BY MR CLINTON'S INCREASED INCOME TAXES ON THE RICH THOSE NEW TAXES ON THE WEALTHY WILL HIT ESPECIALLY HARD IN THE NORTHEAST AND THE WEST COAST WHERE AVERAGE INCOMES TEND TO BE HIGH BUT IN RETURN URBAN AREAS IN THE NORTHEAST STAND TO GET SOME GOODIES FROM THE SPENDING ON INFRASTRUCTURE IN MR CLINTON'S STIMULUS PACKAGE AND CALIFORNIA GETS BENEFITS FROM DEFENSECONVERSION MONEY AND GOVERNMENT INVESTMENTS IN RESEARCH THAT COULD BENEFIT THE STATE'S HIGHTECHNOLOGY COMPANIES MOST IMPORTANT THE ADMINISTRATION SPECIFICALLY OPTED FOR A BROADBASED TAX ON THE BRITISH THERMAL UNIT OR BTU OUTPUT OF VARIOUS KINDS OF ENERGY BECAUSE IT WOULDN'T HIT ANY AREA DISPROPORTIONATELY HARD THE ADMINISTRATION CONSIDERED AN OILIMPORT FEE BUT DECIDED THAT OILDEPENDENT STATES IN NEW ENGLAND WOULD HAVE FELT LIKE THEY GOT THE SHORT END OF THE STICK TREASURY SECRETARY LLOYD BENTSEN TOLD CONGRESS THIS WEEK AND THEN WE LOOKED AT A GASOLINE TAX AND WE THOUGHT ABOUT PEOPLE IN TEXAS AND THE WEST CALIFORNIA WHERE THEY DEPEND MUCH MORE ON A CAR AND WE SAW A DISPROPORTIONATE HIT AND THEN WE LOOKED AT A CARBON TAX AND THEN WE LOOKED AT WHAT WOULD HAPPEN TO COAL STATES AND HOW THEY WOULD BE HIT AND FINALLY WE CAME DOWN ON A BTU TAX MOREOVER THE BTU TAX WAS ADJUSTED TO HIT OIL PRODUCTS HARDER THAN COAL IN HOPES OF MINIMIZING THE IMPACT ON COAL MINERS IN STATES SUCH AS WEST VIRGINIA HOME OF POWERFUL DEMOCRATIC SEN ROBERT BYRD STILL NO BALANCING ACT IN SUCH A COMPLEX PACKAGE CAN BE PERFECT AND REGIONAL VARIATIONS CAN BE SEEN THE REGIONAL FINANCIAL ANALYSIS INDICATES THAT STATES IN THE SOUTH INCLUDING ARKANSAS AND INDUSTRIAL MIDWEST WOULD DO BETTER THAN AVERAGE BECAUSE THEY HAVE RELATIVELY MODERATE INCOME LEVELS THAT WON'T BE HIT HARD BY HIGHER INCOME TAXES ELECTRIC UTILITIES THAT ARE GENERALLY LESS RELIANT ON OIL AND A FAIRLY LOW DEPENDENCE ON DEFENSE PROGRAMS THAT ARE CUT UNDER THE SHRUNKEN CLINTON PENTAGON BUDGET IN ADDITION THE INDUSTRIAL MIDWEST HAS A LARGE NUMBER OF JOBS IN CAPITALINTENSIVE INDUSTRIES THAT WILL BENEFIT FROM THE INVESTMENT TAX CREDIT AND THE SOUTHEAST COULD BENEFIT IN PARTICULAR BECAUSE IT ISN'T AS DEPENDENT ON ENERGY INDUSTRIES SUBJECT TO THE NEW ENERGY TAX AS IS THE SOUTHWEST WHILE ITS WARMER WINTER WEATHER MEANS IT DOESN'T NEED TO CONSUME AS MUCH TAXABLE ENERGY FOR HEATING MR WYSS OF DRI WHO ALSO HAS ANALYZED THE REGIONAL IMPACT OF THE CLINTON PLAN ARGUES THAT THE SOUTHEAST GETS OFF A BIT EASY WHILE THE REST OF THE COUNTRY IS PRETTY EQUAL THERE'S NOTHING IN THERE THAT HITS THE SOUTHEAST ESPECIALLY HARD THE REGIONAL FINANCIAL STUDY FOUND THOUGH THAT THE BIGGEST BURDEN MIGHT BE BORN BY STATES SUCH AS VIRGINIA MARYLAND AND DELAWARE AS WELL AS THE DISTRICT OF COLUMBIA THAT REGION STANDS TO BE HURT BECAUSE ITS ECONOMY IS RELATIVELY HEAVILY DEPENDENT ON DEFENSE WORK ITS UTILITIES ARE RELATIVELY DEPENDENT ON OIL AND ITS RELATIVELY HIGH INDIVIDUAL INCOME LEVELS ARE SUBJECT TO HEAVIER TAXATION MOREOVER THE NATIONAL CAPITAL AREA WOULD FEEL THE ADDED EFFECTS OF MR CLINTON'S PLANS TO FREEZE FEDERAL PAY AND REDUCE THE NUMBER OF GOVERNMENT WORKERS SIMILARLY THE STUDY INDICATES THAT NEW YORK AND NEW JERSEY ARE HURT BY SOME OF THE SAME FACTORS THOUGH THEY WILL BENEFIT IN THE SHORT TERM FROM URBANAID AND TRANSPORTATION PROGRAMS FOR MOST OF THE NORTHEAST THIS ISN'T WHAT I WOULD CALL THE CLINTON RECOVERY ACT OF 1993 SAYS PAUL GETMAN A REGIONAL FINANCIAL ANALYST 9302250116 930225 TECHNOLOGY MICROSOFT LOSES BID FOR A TRADEMARK ON THE WORD WINDOWS' FOR PC SOFTWARE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL THE US PATENT & TRADEMARK OFFICE HAS REJECTED A BID BY MICROSOFT CORP TO GAIN A TRADEMARK ON THE WORD WINDOWS WHEN USED TO DESCRIBE PERSONALCOMPUTER SOFTWARE PRODUCTS THE RULING IS A SETBACK FOR MICROSOFT THE WORLD'S LARGEST SUPPLIER OF PC SOFTWARE WINDOWS IS THE NAME OF MICROSOFT'S WIDELY USED PROGRAM THAT CONTROLS THE BASIC FUNCTIONS OF A PC OUTFITTED WITH DOS SOFTWARE IN CONFIRMING THE TRADEMARK OFFICE'S RULING MICROSOFT ACKNOWLEDGED THAT THE GOVERNMENT CONSIDERS THE WORD WINDOWS TO BE A GENERIC TERM EVEN IN A PC CONTEXT BUT THE REDMOND WASH COMPANY SAID IT PLANS OVER THE NEXT SIX MONTHS TO APPEAL THE RULING WHICH IT DESCRIBED AS NONFINAL MICROSOFT'S EFFORTS TO WIN CONTROL OVER THE TERM WINDOWS HAS RAISED HACKLES AMONG SOME SOFTWARE AND COMPUTER COMPANIES WHO SEE THE CAMPAIGN AS PART OF A PATTERN OF MICROSOFT ATTEMPTS TO OVERPOWER SMALLER RIVALS IT HURTS OUR ABILITY TO COMPETE IF MICROSOFT OWNS THE NAME OF WINDOWS SAID HEIDI SINCLAIR VICE PRESIDENT CORPORATE STRATEGY AT BORLAND INTERNATIONAL INC BORLAND FORMALLY OPPOSED MICROSOFT'S APPLICATION LAST SUMMER AFTER THE TRADEMARK OFFICE RULED TEMPORARILY IN MICROSOFT'S FAVOR BORLAND'S OPPOSITION LED THE TRADEMARK OFFICE TO RECONSIDER LEADING TO LAST WEEK'S REBUFF OF MICROSOFT WHAT WORRIES MS SINCLAIR AND OTHERS IS THAT MICROSOFT IS BIG AND POWERFUL ENOUGH TO EFFECTIVELY CORNER THE MARKET ON WINDOWS TRADE NAMES SIMPLY BY BUYING THEM FROM OTHER HOLDERS OR PRESSURING OTHERS TO RELINQUISH THE RIGHTS TO MICROSOFT IN RECENT YEARS MICROSOFT HAS CHALLENGED AT LEAST 14 TRADEMARK HOLDERS SEEKING TO HAVE THEIR TRADEMARKS STRIPPED AT THE SAME TIME MICROSOFT HAS APPLIED FOR OR ACQUIRED A DOZEN WINDOWSRELATED TRADEMARKS MR ANSON SAID HE BELIEVES MICROSOFT DIDN'T PAY ME A FAIR PRICE FOR THE TRADEMARK BUT THAT WAS THE BEST DEAL I COULD GET IT WOULD'VE BANKRUPTED ME TO PROTECT IT IN COURT EVEN LARGE COMPANIES HAVE BEEN FORCED TO RELINQUISH TRADEMARK CLAIMS UNDER PRESSURE FROM MICROSOFT LAST YEAR INTERNATIONAL DATA GROUP INC A SPRAWLING COMPUTER INFORMATION COMPANY ASSIGNED TO MICROSOFT ITS APPLICATION FOR A TRADEMARK ON THE NAME WINDOWS WORLD AFTER MICROSOFT OBJECTED MICROSOFT ATTORNEYS SAY THEY ARE SIMPLY DEFENDING THEIR WINDOWS NAME WE HAVE COMMONLAW RIGHTS TO THE MARK WINDOWS DUE TO THE ENORMOUS INDUSTRY RECOGNITION GIVEN OUR PRODUCT SAID DANIEL LASTER THE MICROSOFT ATTORNEY IN CHARGE OF TRADEMARK RIGHTS RATHER THAN TRYING TO CORNER THE MARKET ON WINDOWS TRADE NAMES MR LASTER ADDED MICROSOFT HAS PROVIDED REASONABLE GUIDELINES FOR SOFTWARE DEVELOPERS TO MAKE PROPER REFERENCE TO WINDOWS BY USING THE TAGLINE FOR WINDOWS FOLLOWING THE NAME OF A PRODUCT MICROSOFT INITIALLY FILED ITS TRADEMARK APPLICATION IN 1990 ARGUING THAT WITHIN A PC SOFTWARE CONTEXT THE TERM HAD BECOME SYNONYMOUS WITH THE COMPANY'S WINDOWS PROGRAM THE COMPANY CONTINUES TO PRESS THE ARGUMENT WHICH EXECUTIVES THINK HAS EVEN GREATER FORCE NOW THAT CONSUMERS ARE BUYING ONE MILLION COPIES OF WINDOWS A MONTH WE HOPE THE TRADEMARK OFFICE ULTIMATELY WILL SEE THE CORRECTNESS OF OUR ARGUMENT SAID JONATHAN LAZARUS VICE PRESIDENT FOR SYSTEM STRATEGY RIVALS HOWEVER COUNTER THAT WINDOWS WAS A GENERIC TERM IN THE COMPUTER INDUSTRY LONG BEFORE THE MICROSOFT PRODUCT OF THE SAME NAME HIT IT BIG MICROSOFT REFUSES TO ACKNOWLEDGE THE EXISTENCE OF OTHER PRODUCTS BEARING THE NAME WINDOWS THAT PREDATE ITS OWN SAYS MS SINCLAIR OF BORLAND 9302250114 930225 BUSINESS BRIEF WORLD CHIP MARKET EXPECTED TO GROW 17 BY TEXAS INSTRUMENTS DALLAS TEXAS INSTRUMENTS INC SAID IT EXPECTS THE WORLD SEMICONDUCTOR MARKET TO GROW 17 THIS YEAR BECAUSE OF SHARP GAINS IN THE US AND ASIA TI'S OPTIMISTIC FORECAST BOOSTED THE COMPANY'S STOCK PRICE 3125 TO 5750 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SHARES OF OTHER US SEMICONDUCTOR COMPANIES INCLUDING MOTOROLA INC AND INTEL CORP ALSO ROSE ON THE TI ESTIMATE IN ITS ANNUAL BRIEFING TO FINANCIAL ANALYSTS THE DEFENSE ELECTRONICS COMPANY SAID SEMICONDUCTOR DEMAND IN THE US IS EXPECTED TO JUMP 25 THIS YEAR TO 23 BILLION COMPARED WITH A GROWTH RATE OF 20 IN 1992 THE COMPANY PEGGED THE INCREASES TO BOOMING DEMAND FOR PERSONAL COMPUTERS AS WELL AS EXPECTED 31 GROWTH IN THE US ECONOMY THE HIGHEST SINCE 1988 SEMICONDUCTOR DEMAND WILL GROW 28 IN THE ASIA PACIFIC REGION THIS YEAR AND 13 IN EUROPE TI SAID IN CONTRAST THE COMPANY PREDICTED A SLUGGISH SEMICONDUCTOR MARKET IN JAPAN THIS YEAR AS THAT NATION STRUGGLES THROUGH ITS WORST RECESSION IN TWO DECADES TI SAID THAT MARKET WILL GROW 5 THIS YEAR TO 204 BILLION LAST YEAR THE SEMICONDUCTOR BUSINESS IN JAPAN SHRANK 7 THE BOOM IN THE US AND THE SLUMP IN JAPAN MAKE NORTH AMERICA'S SEMICONDUCTOR MARKET BIGGER THAN JAPAN'S FOR THE FIRST TIME IN EIGHT YEARS WORLDWIDE TI SAID THE SEMICONDUCTOR MARKET IS EXPECTED TO TOTAL ABOUT 70 BILLION THIS YEAR VLADI CATTO TI'S CHIEF ECONOMIST SAID LOWER JAPANESE INTEREST RATES AND INCREASED GOVERNMENT SPENDING SHOULD SPARK A MODEST RECOVERY IN THE JAPANESE ECONOMY THOUGH HE SAID THE REBOUND PROBABLY WON'T COME UNTIL THIS YEAR'S SECOND HALF MR CATTO SAID JAPAN'S ECONOMY IS EXPECTED TO GROW 17 THIS YEAR FLAT COMPARED WITH 1992 9302250113 930225 NEW DATA REVISE COSTS OF ANDREW TO INSURERS RAHWAY NJ HURRICANE ANDREW WILL COST INSURERS 155 BILLION ACCORDING TO A REVISED ESTIMATE BY THE OFFICIAL SCOREKEEPER FOR THE INSURANCE INDUSTRY THE PROPERTY CLAIMS SERVICE OF THE AMERICAN INSURANCE SERVICES GROUP INITIALLY SAID THE AUGUST STORM WOULD COST INSURERS 73 BILLION BUT REVISED ITS ESTIMATE TO 107 BILLION IN NOVEMBER THE ESTIMATE IS BASED ON FIGURES PROVIDED BY INSURANCE COMPANIES IN RECENT MONTHS INSURERS HAVE REVISED THEIR OWN NUMBERS UPWARD THE SEVERITY OF THE DEVASTATION IN FLORIDA HAS INCREASED BUILDING COSTS AND EXPENSES INSURERS MUST PAY TO VICTIMS WHILE THEIR HOMES ARE BEING REBUILT AM BEST & CO AN INSURANCE INDUSTRY RATINGS CONCERN ESTIMATED THE INSURANCE INDUSTRY WILL PAY AS MUCH AS 165 BILLION TO VICTIMS MAKING ANDREW THE COSTLIEST NATURAL DISASTER IN US HISTORY 9302250112 930225 IRAN GAMES BAR MEN SO MUSLIM WOMEN CAN DRESS FOR SPORT HOW DO YOU KEEP THE GUYS AWAY FROM THE STADIUM ARMED GUARDS OF COURSE BY GERALDINE BROOKS STAFF REPORTER OF THE WALL STREET JOURNAL TEHRAN IRAN AS THE TORCHBEARER AT THE OPENING CEREMONY OF THE FIRST ISLAMIC WOMEN'S GAMES LOPES GRACEFULLY AROUND THE TRACK HER FATHER HIGH IN THE STANDS ALMOST BURSTS WITH PRIDE EIGHTEENYEAROLD PADIDEH BOBURIZADEH HAS BEEN AN IRANIAN TRACK STAR SINCE SHE WAS SEVEN BUT THIS IS THE FIRST TIME HER FATHER HAS EVER SEEN HER RUN HE IS ABLE TO WATCH BECAUSE HIS DAUGHTER IS WEARING FULL HIJAB THE ISLAMIC COVERING THAT CONCEALS EVERYTHING BUT A WOMAN'S FACE AND HANDS HER WHITE TRACK SUIT HAS A CLOSEFITTING HOOD THAT CONTAINS EVERY WISP OF HAIR AND HER ATHLETIC SHOES PEEK FROM BENEATH A BLACK ANKLELENGTH TUNIC FLAPPING OVER HER TRACK SUIT PANTS AFTERWARD WHEN THE GAMES GET UNDERWAY IT'S A DIFFERENT STORY FOR THE HIGH JUMP AND THE 400METER RACE MS BOBURIZADEH STRIPS DOWN TO A PAIR OF THIGHHUGGING LYCRA SHORTS AND A TSHIRT AT THE SWIMMING CONTESTS IRANIAN LANE JUDGES WEAR A FETCHING UNIFORM OF TINY PURPLE MINISKIRTS TOPPED WITH ACIDGREEN SWEATERS THE SWIMMERS OF COURSE WEAR SWIMSUITS FOR ALL THESE EVENTS ARMED GUARDS PATROL THE STADIUM DOORS INSIDE NO MEN ARE ALLOWED THAT'S A PROBLEM FOR KYRGYZISTAN'S VOLLEYBALL TEAM WHICH HAS A MALE COACH AT MATCHES A PLAYER GRABS A SCARF AND COAT AND RUNS OUT OF THE STADIUM AT REGULAR INTERVALS TO TELL HER COACH THE DETAILS OF THE GAME AND BRING BACK HIS INSTRUCTIONS IF WE CAN PLAY CHESS WITHOUT LOOKING AT THE BOARD WHY NOT SHRUGS ALYEV MOUSLIM A MALE MANAGER WITH AZERBAIJAN'S TEAM SINCE HE CAN'T WATCH THE GAMES MR MOUSLIM EXPECTED TO HAVE A LOT OF FREE TIME IN TEHRAN INSTEAD I FIND I'M SOLVING A LOT OF PROBLEMS THE ATHLETES ARE HAVING WHILE ACCLIMATIZING TO THE REGULATIONS ALTHOUGH AZERBAIJAN IS PREDOMINANTLY MUSLIM ITS WOMEN DON'T WEAR VEILS AND HAVE ALWAYS TAKEN PART IN MIXED SPORTS IT'S VERY HARD FOR OUR WOMEN TO GET USED TO WEARING THESE SCARVES SAYS MR MOUSLIM WAITING FOR THE ELEVATOR MARKED SPECIAL FOR MEN AT THE ATHLETES' HOTEL IT SEEMS LIKE THE BIGGEST FAULT HERE IS FOR SOMEONE TO SEE YOUR HAIR BUT IF GOD DOESN'T LIKE IT WHY DOES GOD GIVE YOU EYES STILL HAVING THE SEVENDAY 10COUNTRY GAMES AT ALL IS A BIG STEP FORWARD IN IRAN WHERE WOMEN'S SPORTS ALMOST VANISHED FROM PUBLIC VIEW AFTER THE ISLAMIC REVOLUTION 14 YEARS AGO IRANIAN WOMEN ATHLETES WHO HAD WORN SHORTS OR SWIMSUITS TO THE OLYMPICS DURING THE SHAH'S REIGN WERE TOLD THAT SUCH DISPLAYS OF THE FEMALE BODY WERE UNISLAMIC AND WOULD NO LONGER BE TOLERATED WOMEN DISAPPEARED FROM THE IRANIAN OLYMPIC SQUAD THEY HAD TO TRAIN ENTIRELY INDOORS COACHED ONLY BY WOMEN DURING THE FEW HOURS WHEN MALE ATHLETES WERE EXCLUDED FROM THE POOLS OR GYMNASIUMS BUT NOW IRAN'S FEMALE ATHLETES ARE REEMERGING FOR THE LAST THREE MONTHS TEHRAN'S RUNNERS PARK HAS HAD THREE DAYS EACH WEEK WHEN MEN ARE BANNED FROM 8 AM TO 4 PM SO THAT WOMEN CAN TRAIN OUTDOORS WITHOUT HIJAB AT THE NEXT OLYMPICS IRAN HOPES TO HAVE WOMEN COMPETITORS IN SHOOTING SKIING AND EQUESTRIAN EVENTSTHREE SPORTS WHERE HIJAB DOESN'T HINDER PERFORMANCE AND FOR THE OTHERS THE SWIMMERS TRACK STARS AND BALLPLAYERS IRAN HAS FOUNDED THE ISLAMIC WOMEN'S GAMES WHICH IT HOPES WILL BE HELD IN A DIFFERENT ISLAMIC COUNTRY EVERY FOUR YEARS THE FIRST WOMEN'S GAMES OPENED IN TEHRAN ON FEB 13 WITH AROUND 500 ATHLETES ABSENT WERE SOME OF THE STRICTEST MUSLIM COUNTRIES SUCH AS SAUDI ARABIA WHICH HAS NO ORGANIZED SPORTS FOR WOMEN ALL THE ATHLETES WHO ACCEPTED IRAN'S INVITATION CAME FROM MUSLIM COUNTRIES THAT ALLOW WOMEN TO PLAY IN MIXED CONTESTS SUCH AS SYRIA PAKISTAN AND THE NEWLY INDEPENDENT SOVIET REPUBLICS OF TURKMENISTAN AND TADJIKISTAN BETWEEN EVENTS THE GAMES ORGANIZERS OFFER THEIR FOREIGN GUESTS A RANGE OF NONSPORTING ACTIVITIES THERE ARE VISITS TO THE FORMER SHAH'S PALACE TO AN EXHIBITION ENTITLED THE DIGNITY AND PRESTIGE OF WOMEN IN THE ISLAMIC SYSTEM AND TO AYATOLLAH KHOMEINI'S SHRINE A GOLDDOMED MOSQUE BUILT ATOP HIS TOMB ON THE BUS TO THE SHRINE CHADORWEARING IRANIANS HAND OUT TISSUES TO ATHLETES WEARING LIPSTICK IF I STAY HERE I'LL SAVE A FORTUNE ON COSMETICS QUIPS MURSHIDA MUSTAKIM WIPING AWAY AT HER TOOGLOSSY LIPS MS MUSTAKIM IS A RETIRED SUPERINTENDENT OF THE MALAYSIAN POLICE FORCE AND COACH OF THE SHOOTING TEAM THE MALAYSIANS ALL POLICEWOMEN LOST OUT TO THE IRANIAN SHOOTERS WHO WON THE TEAM GOLD MEDAL AND SEVERAL INDIVIDUAL EVENTS IRANIAN WOMEN HONED THEIR SHOOTING SKILLS IN THE WOMEN'S MILITIAS THAT PROLIFERATED DURING THE IRANIRAQ WAR BUT ELHAM HASHEMI A 21YEAROLD SILVER MEDALIST IN THE SMALLBORE RIFLE CONTEST HAD OTHER REASONS FOR TAKING UP SHOOTING THREE YEARS AGO IT IS ONE OF THE THREE SPORTS THAT THE PROPHET OF ISLAM HAS ORDERED SHE SAYS CITING MOHAMMED'S ENCOURAGEMENT OF RIDING SWIMMING AND ARCHERY WHOSE MODERN EQUIVALENT IS SHOOTING AND IT'S ONE OF THE FEW SPORTS WHERE AN IRANIAN WOMAN CAN BECOME WORLDFAMOUS MS HASHEMI HAS ALREADY COMPETED IN THE ASIAN GAMES IN BEIJING IN 1990 WHERE SHE BROKE THE IRANIAN MEN'S RECORD HER DREAM IS TO WIN A MEDAL AT THE ATLANTA OLYMPICS BUT FOR ATHLETES WHO CAN'T COMPETE IN HIJAB SUCH AS MS BOBURIZADEH THE TORCHBEARER THE ISLAMIC WOMEN'S GAMES MIGHT BE THE ONLY CHANCE THEY EVER HAVE TO TEST THEMSELVES AGAINST INTERNATIONAL CHAMPIONS ON THE FIRST DAY MS BOBURIZADEH FINDS HERSELF UP AGAINST THE SYRIAN HIGH JUMPER GHADA SHUAH WHO COMPETED AT THE BARCELONA OLYMPICS IN SUCH COMPANY MS BOBURIZADEH'S 165 METER JUMP ISN'T MEDAL MATERIAL BUT THE COMPETITION SPURS HER TO ADD AN ASTONISHING NINE CENTIMETERS TO HER PREVIOUS PERSONAL BEST AND TO BREAK THE IRANIAN RECORD SET BEFORE THE REVOLUTION BY FOUR CENTIMETERS UNFORTUNATELY HER FEAT WON'T BE RECOGNIZED IN THE RECORD BOOKS BECAUSE THE JUMP TOOK PLACE INDOORS FOR ISLAMIC MODESTY INSTEAD OF OUTSIDE AS INTERNATIONAL RULES REQUIRE BY THE END OF THE GAMES MS BOBURIZADEH HAS EARNED A BRONZE MEDAL IN RELAY AND FINISHED FOURTH IN HIGH JUMP AND THE 400METER RACE I'VE LEARNED SO MUCH BY WATCHING HOW THE OTHERS DO THINGS SHE SAYS IN HIGH JUMP I CAN SEE THAT MY TAKEOFF IS ALL WRONG AND THE VISITORS HAVE LEARNED SOMETHING TOO SAYS FAWZIA GHAOUB A TABLETENNIS COACH FROM SYRIA WE DIDN'T EXPECT TO FIND REAL ATHLETES UNDER THOSE CHADORS 9302250111 930225 ECONOMY HOUSE APPROVES BILL EXTENDING JOBLESS BENEFITS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE VOTED TO EXTEND FEDERAL UNEMPLOYMENT BENEFITS FOR SIX MONTHS ALLOWING THE JOBLESS TO RECEIVE EMERGENCY AID UNTIL NEXT JAN 15 TWENTYSEVEN REPUBLICANS JOINED 226 DEMOCRATS IN BACKING THE MEASURE WHICH WAS SEEN AS AN EARLY REFERENDUM ON PRESIDENT CLINTON'S ECONOMICSTIMULUS PACKAGE DEMOCRATS URGED BACKING THE BENEFITS AS AN INVESTMENT IN THE ECONOMY WHILE REPUBLICANS ARGUED THAT THE PLAN WAS FISCALLY IRRESPONSIBLE BECAUSE IT WOULD ADD 57 BILLION TO THE FEDERAL BUDGET DEFICIT UNDER THE CURRENT UNEMPLOYMENT PROGRAM WORKERS WHO HAVE EXHAUSTED STATE BENEFITS CAN APPLY UNTIL MARCH 6 FOR AS MANY AS 26 WEEKS OF ADDITIONAL FEDERAL SUPPORT THE MEASURE APPROVED BY THE HOUSE WOULD ALLOW WORKERS TO APPLY FOR THAT AID AS LATE AS OCT 2 HOWEVER NO ONE WOULD BE ABLE TO RECEIVE ADDITIONAL FEDERAL AID IF THEY HAVE ALREADY BEEN PAID FOR 26 WEEKS THE SENATE FINANCE COMMITTEE ALSO APPROVED THE BILL YESTERDAY AND IT IS EXPECTED TO REACH THE SENATE FLOOR TUESDAY WHILE THE MEASURE IS EXPECTED TO PASS REPUBLICANS IN THE SENATE ALSO QUESTIONED THE FUNDING I MAY VOTE AGAINST IT ON THE FLOOR IF IT'S NOT PAID FOR WARNED BOB PACKWOOD OF OREGON THE COMMITTEE'S RANKING REPUBLICAN IN THE HOUSE DEBATE REPUBLICANS ARGUED THAT THE BILL'S LACK OF FUNDING WILL SIMPLY SHIFT THE COSTS OF THIS YEAR'S BENEFITS TO FUTURE GENERATIONS IN THE FORM OF BIGGER BUDGET DEFICITS I PLEAD WITH THE MEMBERS ON THE OTHER SIDE OF THE AISLE TO DO THE RIGHT RESPONSIBLE THING SAID PENNSYLVANIA REPUBLICAN RICK SANTORUM FOR THE KIDS WHO HAVE A RIGHT TO A FUTURE WITHOUT A DEFICIT THAT WILL HURT THEIR CHANCES FOR EMPLOYMENT HE AND OTHER REPUBLICANS BACKED A PROPOSAL THAT WOULD HAVE SENT THE BILL BACK TO THE HOUSE WAYS AND MEANS COMMITTEE SO THAT A MEANS OF FUNDING THE BENEFITS COULD BE ADDED BUT DEMOCRATS MANAGED TO HOLD THEIR RANKS TOGETHER AND DEFEAT THAT MOTION 229186 THIS IS THE FIRST STEP OF THE PRESIDENT'S ECONOMIC PROGRAM SAID REP ROBERT MATSUI D CALIF WE HAVE AN OBLIGATION IN THIS BODY TO MAKE SURE WE PASS HIS PROGRAM REP MATSUI ASSURED COLLEAGUES THAT THE DEFICITREDUCTION PART OF THE PRESIDENT'S PROGRAM WAS SOON TO COME INDEED SPENDING CUTS DESIGNED TO REDUCE THE BUDGET GAP NOW ARE BEING ACCELERATED BY THE WHITE HOUSE AND CONGRESS APPARENTLY AT THE URGING OF MANY FRESHMAN CONGRESSMEN THE REPUBLICANS TRIED TO PLAY OFF THAT EFFORT PRESSING FRESHMAN DEMOCRATS TO JOIN THE DEFICITBUSTING CAUSE THIS BILL IS NOT ABOUT UNEMPLOYMENT COMPENSATION SAID IOWA REPUBLICAN FRED GRANDY IT IS ABOUT SPENDING BUT DEMOCRATS WERE ABLE TO SET BACK THAT EFFORT AS WELL AS ANOTHER TO FORCE STATES TO PAY A PIECE OF THE NEW BENEFITS UNDER THE EXTENSION OF BENEFITS APPROVED LAST YEAR STATES COULD HAVE EXTENDED BENEFITS BEYOND MARCH 6 IF THEY PAID HALF THE COST REPUBLICANS CONTENDED THAT 21 STATES COULD HAVE TRIGGERED THOSE NEW BENEFITS BUT NONE HAD CHOSEN TO DO SO INDICATING THAT JOBLESS PROBLEMS WEREN'T SEVERE ENOUGH TO FORCE ACTION CLOSER TO HOME BUT DEMOCRATS COUNTERED THAT THE FAILURE OF LEGISLATURES TO MOVE SHOULDN'T BE HELD AGAINST THE JOBLESS UNDER THE PROGRAM APPROVED BY THE HOUSE UNEMPLOYED WORKERS IN STATES WITH JOBLESS RATES OF 9 OR HIGHER CAN RECEIVE AS MUCH AS 26 WEEKS OF FEDERAL BENEFITS CURRENTLY SIX STATES AND PUERTO RICO ARE ELIGIBLE TO APPLY FOR THE FULL BENEFITS THE REMAINDER OF STATES CAN OFFER AN ADDITIONAL 20 WEEKS OF BENEFITS HOWEVER IF THE NATIONAL UNEMPLOYMENT RATE FALLS BELOW 7 FOR TWO MONTHS FEDERAL BENEFITS WOULD BE REDUCED AS PART OF THIS YEAR'S PLAN THE GOVERNMENT WILL BEGIN CREATING A PROFILING SYSTEM THAT WILL HELP STATES SEPARATE EMPLOYEES WHO ARE EXPECTED TO RETURN TO THEIR JOBS FROM THOSE WHO AREN'T LIKELY TO REJOIN THEIR COMPANIES THE PERMANENTLY FIRED WORKERS WOULD THEN BE OFFERED COUNSELING AND TRAINING PROGRAMS WHICH IN STATE TESTS HAVE BEEN SHOWN TO CUT THE TIME THAT UNEMPLOYED WORKERS RECEIVE BENEFITS 9302250110 930225 WORLD MARKETS SHARE PRICES SOFTEN IN TOKYO WAFFLE IN LONDON AND DROP SHARPLY IN FRANKFURT FOR SECOND DAY A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES SOFTENED BROADLY WEDNESDAY AFTER TRADING IN A NARROW RANGE LONDON EQUITIES FINISHED LITTLE CHANGED IN NERVOUS DEALINGS FRANKFURT STOCKS DROPPED SHARPLY FOR A SECOND SESSION IN A ROW ENDING 1 LOWER IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4254 POINTS TUESDAY FELL 6421 TO 1679894 AFTER MOVING WITHIN A BAND OF SLIGHTLY MORE THAN 179 POINTS ON THURSDAY IN TOKYO THE NIKKEI EASED 161 POINTS TO CLOSE THE MORNING SESSION AT 1679733 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES UP SLIGHTLY FROM 2113 MILLION SHARES ON TUESDAY DECLINERS OUTNUMBERED GAINERS 600288 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 260 POINTS TUESDAY DROPPED 603 TO 127528 THE MARKET IGNORED JAPANESE GOVERNMENT HINTS OF FURTHER STIMULATIVE FISCAL AND MONETARY STEPS INVESTORS HAVE SCARCELY BEEN RESPONDING RECENTLY TO NEWS ABOUT ECONOMIC POLICY CHANGES BECAUSE OF THE THOROUGHNESS OF GOVERNMENT ATTEMPTS TO MANIPULATE THE MARKET SUCH AS PENSIONFUND BUYING AT LOWS TO PREVENT SLIDES THE MARKET ALSO REMAINED HEMMED IN AT THE TOP BY SELLING BY INVESTMENT TRUSTS AND CORPORATIONS LIQUIDATION WEDNESDAY OF LONG MARGIN POSITIONS ON STOCKS WITH MARGIN CONTRACTS COMING DUE NEXT MONTH LED TO SOME HEAVY SELLING THE MARGIN IS THE AMOUNT OF CASH THAT MUST BE PUT UP FOR PURCHASES WHEN BORROWING THE REMAINDER THE DOLLAR'S TEPID REBOUND AGAINST THE YEN DIDN'T ERASE TOKYO INVESTORS' CONCERNS THAT THE JAPANESE CURRENCY COULD RESUME ITS ADVANCE PUTTING MORE DOWNWARD PRESSURE ON STOCKS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX EASED 10 POINT TO 28170 THE FT 30STOCK INDEX SHED 78 POINTS TO 21729 VOLUME WAS 5927 MILLION SHARES COMPARED WITH 5532 MILLION SHARES A DAY EARLIER LACK OF A CLEAR DIRECTION FOR TRADING AND HEIGHTENED CONCERNS ABOUT BIG STOCK RIGHTS ISSUES LEFT INVESTORS APPREHENSIVE AND PRICES WERE CONFINED TO A NARROW RANGE EARLY GAINS ON WALL STREET FAILED TO INFLUENCE THE LONDON MARKET WHICH NONETHELESS CONTINUED TO FIND SOLID SUPPORT AT CURRENT LEVELS IN FRANKFURT THE DAX 30STOCK INDEX SLUMPED 1734 POINTS TO 164424 BARELY ABOVE THE INTRADAY LOW OF 164413 PRIMARLY BECAUSE OF A SELLOFF IN THE BOND MARKET WHICH PROMPTED INVESTORS TO TAKE PROFITS ON STOCKS RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 255 THE DOLLAR'S FALL IN FOREIGN EXCHANGE MARKETS ALSO DROPPED A WET TOWEL ON STOCKS SHARES SANK IN THE DOLLARSENSITIVE EXPORT SECTOR SUCH AS AUTOS AND CHEMICALS THOUGH GERMANY'S CARNIVAL CELEBRATIONS ENDED TUESDAY TRADING VOLUME YESTERDAY REMAINED THIN AS INVESTORS AND BROKERS CONTINUED TO REMAIN ON THE SIDELINES THE DAX A DAY EARLIER FELL 11 AND PARTICIPANTS VIEWED THE TWODAY LOSING STREAK AS A CONSOLIDATION FOLLOWING SHARP GAINS RECENTLY IN THE PAST MONTH THE INDEX HAD CLIMBED 75 DESPITE GERMANY'S RECESSION AND A PLETHORA OF DISAPPOINTING CORPORATE RESULTS IN PARIS SHARES REBOUNDED LATE IN THE SESSION IN RESPONSE TO BULLISH ACTIVITY IN STOCKINDEX FUTURES MODERATELY POSITIVE COMMENTS ON THE US ECONOMY BY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN AND A FIRM TONE ON WALL STREET AMSTERDAM PRICES WEAKENED ON THE SOFT PERFORMANCES BY TOKYO AND LONDON STOCKS AND ON THE SOFTER DOLLAR IN MILAN CONCERNS ABOUT ITALY'S POLITICAL FRAGILITY AND THE LIRA'S WEAKNESS OVERTURNED AN INITIAL POSITIVE TREND ON THE BOURSE AND SHARE PRICES ENDED LOWER IN MADRID WHERE HEAVY BOND MARKET LOSSES AND THE SPANISH PESETA'S CONTINUED INSTABILITY PUSHED STOCKS DOWN PRICES ENDED FLAT AFTER A LASTMINUTE RUSH OF INSTITUTIONAL BUYING PULLED THE MARKET UP FROM LOWS STOCKHOLM EQUITIES FELL BROADLY EXCEPT FOR THE BANKING SECTOR WHERE STOCKS HAD A STRONG PERFORMANCE ZURICH PRICES ROSE AS CHEMICAL ISSUES RECOVERED FROM THE PREVIOUS DAY'S SELLOFF IN SYDNEY THOUGH THE MARKET REMAINS NEAR ITS HIGHEST LEVEL IN SIX MONTHS PRICES EASED AS SENTIMENT ERODED BECAUSE OF CORPORATE PROFIT DECLINES AND SOFTER MARKETS OVERSEAS IN HONG KONG BARGAINHUNTING AND POLITICAL NEWS PUSHED STOCKS HIGHER BUYING WAS SPURRED BY ANTICIPATION OF DELAYS IN DEMOCRATIC REFORM PROPOSALS WHICH COULD HELP SINOBRITISH NEGOTIATIONS SINGAPORE SHARES SURGED AGAIN HELPED BY A GOVERNMENT MOVE TO REZONE PRIME HOUSING DISTRICTS AS PURELY RESIDENTIAL AIDING PROPERTYOWNING FIRMS TAIPEI SHARES DROPPED ON PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN TOKYO CANON ADDED 10 YEN TO 1320 YEN 1128 THE CAMERA AND OFFICEEQUIPMENT MAKER'S 1992 CONSOLIDATED PRETAX PROFIT SLID 31 TO 10163 BILLION YEN 8685 MILLION FROM A YEAR EARLIER DESPITE GROWTH LAST YEAR IN EMERGING MARKETS CANON CITED THE GLOBAL ECONOMY'S SLOWDOWN AND THE YEN'S STRENGTH IN LONDON BRITISH AEROSPACE JUMPED 13 PENCE OR 52 TO 265 PENCE 386 THE DEFENSE CONTRACTOR'S 1992 PRETAX LOSS WIDENED TO 12 BILLION 175 BILLION FROM THE YEAREARLIER DEFICIT OF 112 MILLION IN LINE WITH ANALYSTS' EXPECTATIONS THE LATEST RESULTS INCLUDED A PREVIOUSLY ANNOUNCED 1 BILLION SPECIAL CHARGE TO WRITE DOWN THE VALUE OF THE COMPANY'S REGIONAL AIRCRAFT BUSINESS BUT BRITISH AEROSPACE SAID ITS EARNINGS WERE POISED TO RECOVER IMPERIAL CHEMICAL INDUSTRIES ROSE 8 PENCE TO 1082 1575 AFTER REBOUNDING IN VOLATILE TRADING AHEAD OF THE EXPECTED ANNOUNCEMENT TODAY OF ICI'S DECISION ON WHETHER TO SPLIT INTO TWO PUBLIC COMPANIES ONE FOR BULK CHEMICALS AND THE OTHER FOR PHARMACEUTICALS AND AGROCHEMICALS INVESTORS WEREN'T ENTHRALLED BECAUSE THE ICI PLAN ALMOST CERTAINLY WOULD INVOLVE A SHARE OFFERING OF AS MUCH AS 1 BILLION BY ICI'S PHARMACEUTICAL AND AGROCHEMICAL UNIT RECENTLY RENAMED ZENECA LTD WITH THE PRICE OF BLUECHIP DRUG STOCKS PLUMMETING IN MARKETS WORLDWIDE ANALYSTS WERE GLUM ABOUT A ZENECA SHARE OFFERING ANYTIME SOON IN AMSTERDAM AKZO DROPPED 210 GUILDERS OR 14 TO 14990 GUILDERS 8219 EVEN THOUGH THE CHEMICAL COMPANY'S 1992 EARNINGS ROSE 11 TO 646 MILLION GUILDERS 3542 MILLION LARGELY BECAUSE OF A SHARP DROP IN SPECIAL CHARGES THE DIVIDEND WAS MAINTAINED AT 650 GUILDERS A SHARE THE STOCK HAD BEEN TECHNICALLY OVERBOUGHT RECENTLY AND WAS CONSIDERED RIPE FOR A CORRECTION 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 9302250109 930225 CONGRESSMEN SEEK HEARING ON COAL RETIREE BENEFITS WASHINGTON IN A SECOND CHALLENGE TO A MEASURE THAT HAD APPEARED TO SOLVE ONE OF THE COAL INDUSTRY'S MOST PRESSING LABOR ISSUES 23 MEMBERS OF CONGRESS WROTE REP DAN ROSTENKOWSKI D ILL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE TO REQUEST A HEARING ON THE COAL INDUSTRY RETIREE HEALTH BENEFIT ACT OF 1992 THE ACT BAILS OUT THE INDUSTRY'S RETIREE HEALTH BENEFIT PLANS LARGELY BY FORCING FORMER COAL PRODUCERS TO BEGIN PAYING AGAIN INTO THE HEALTH FUND IN ITS LETTER THE CONGRESSIONAL GROUP SAYS THE ACT SETS A TERRIBLE PRECEDENT FOR BENEFITS BAILOUTS AND ASKS FOR A HEARING BEFORE THE WAYS AND MEANS COMMITTEE AT THE EARLIEST POSSIBLE DATE THE EFFORT WAS LED BY TWO MEMBERS FROM TEXAS DEMOCRAT JIM CHAPMAN AND REPUBLICAN JOE BARTON LAST MONTH THE ACT WAS CHALLENGED IN COURT IN THREE SEPARATE SUITS FROM FIVE COMPANIES THAT HAVE LEFT THE COAL INDUSTRY THE COMPANIES SAID THEY TOOK CARE OF THEIR OBLIGATIONS BY PUTTING MILLIONS OF DOLLARS INTO THE RETIREE FUNDS BEFORE THEY LEFT THE BUSINESS THIS WEEK ANOTHER SUIT WAS FILED BY THREE COMPANIES THAT STILL MINE COAL BUT HAVE NO RETIREES ENTITLED TO BENEFITS IN THE UNITED MINE WORKERS' COMBINED BENEFIT FUND 9302250108 930225 LAW TEXAS REFORM BILLS ON JURY AWARDS PASS LEGISLATURE BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL OVERRIDING COMPLAINTS FROM CONSUMER ACTIVIST RALPH NADER THE TEXAS LEGISLATURE APPROVED TWO LEGAL REFORM BILLS THAT BUSINESS GROUPS HOPE WILL REIN IN THE STATE'S REPUTATION FOR HUGE JURY AWARDS BOTH BILLS WHICH ARE EXPECTED TO BE SIGNED BY GOV ANN RICHARDS HAD STALLED WHEN PREVIOUSLY INTRODUCED THEY SUCCEEDED THIS TIME AND CAME UNDER ATTACK BY MR NADER BECAUSE THEY WERE NEGOTIATED PRIVATELY BY TEXAS TRIAL LAWYERS AND THE STATE'S LEADING BUSINESS GROUPS THE NEGOTIATION'S UPSHOT WAS COMPROMISE LEGISLATION THAT BUSINESS GROUPS SAY FALLS SHORT OF WHAT THEY HAD HOPED FOR BUT STILL IS THE MOST COMPREHENSIVE PACKAGE OF LEGAL REFORMS IN TEXAS ONE LAW WOULD EXEMPT CERTAIN INDUSTRIES INCLUDING ALCOHOL AND TOBACCO FROM PRODUCT DEFECT SUITS ALTOGETHER AND ALSO PROVIDES BROAD EXEMPTIONS FROM SUCH SUITS FOR OTHER INDUSTRIES INCLUDING MAKERS OF FIREARMS THE LEGISLATION ALSO WILL MAKE IT HARDER FOR PLAINTIFFS TO WIN PRODUCT DEFECT SUITS BY REQUIRING PROOF THAT A PRODUCT'S MANUFACTURER IGNORED A SAFER COSTEFFECTIVE ALTERNATIVE AVAILABLE AT THE TIME OF MANUFACTURE ANOTHER MEASURE WILL GIVE TEXAS JUDGES MORE DISCRETION TO DISMISS WRONGFUL DEATH AND PERSONAL INJURY SUITS BROUGHT BY FOREIGN RESIDENTS AND NONTEXANS AGAINST COMPANIES DOING BUSINESS IN THE STATE LAWYERS AND LOBBYISTS FOR MANUFACTURERS SAY THE BILLS SHOULD HELP DETER FRIVOLOUS CLAIMS AND HELP REVERSE THE STATE'S REPUTATION AS A PROPLAINTIFF FORUM FOR LAWSUITS BUT THE PRECISE IMPACT OF THE REFORMS IS DIFFICULT TO PREDICT SOME CHANGES SUCH AS THE PROTECTION GRANTED THE TOBACCO INDUSTRY AREN'T EXPECTED TO MAKE MUCH OF A DIFFERENCE BECAUSE PRODUCT DEFECT CLAIMS AGAINST CIGARETTE MANUFACTURERS HAVE NEVER BEEN PROFITABLE FOR PLAINTIFF LAWYERS THE REFORM IS EXPECTED TO BRING RELIEF TO SEVERAL SECTORS OF THE TEXAS BUSINESS COMMUNITY STORE OWNERS FOR EXAMPLE WOULD BE PROTECTED FROM PRODUCT DEFECT SUITS BY A PROVISION THAT REQUIRES MANUFACTURERS TO INDEMNIFY ALL RETAILERS IN PRODUCT DEFECT DAMAGE AWARDS AND PAY REASONABLE ATTORNEY FEES THAT PROVISION ALSO ELIMINATES THE NEED FOR RETAILERS NAMED IN PRODUCT SUITS TO SUE MANUFACTURERS IN ORDER TO RECOVER THEIR COSTS ANOTHER PROTECTION SHIELDS MANUFACTURERS FROM LIABILITY FOR DEFECTIVE PRODUCTS 15 YEARS AFTER THEIR SALE TRIAL LAWYERS MAINTAIN THAT THEY ACHIEVED THE BEST THEY COULD IN A POLITICAL CLIMATE HOSTILE TO LAWYERS THEY MANAGED TO BLOCK MORE DRASTIC REFORMS INCLUDING CAPS ON LEGAL FEES AT THE LAST MINUTE A PROVISION THAT WOULD HAVE ELIMINATED PRODUCT LIABILITY SUITS AGAINST MAKERS OF FEDERALLY APPROVED VACCINES FOR CHILDHOOD DISEASES WAS DELETED BECAUSE OF CONCERNS OF TRIAL LAWYERS AND CONSUMER ADVOCATES THE PROVISION'S SPONSOR WANTED TO LEAVE OPEN THAT REMEDY BECAUSE OF UNCERTAINTY OVER THE FUTURE FUNDING OF THE VICTIM INJURY COMPENSATION PROGRAM THE SYSTEM ESTABLISHED BY CONGRESS TO COMPENSATE CHILDREN INJURED BY VACCINES 9302250106 930225 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK DAVID A DODD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT AND GENERAL MANAGER OF THE PHARMACEUTICAL PRODUCTS DEPARTMENT AT WYETHAYERST LABORATORIES A UNIT OF THIS PHARMACEUTICAL CONCERN MR DODD 43 YEARS OLD HAD BEEN VICE PRESIDENT OF THE WYETH PEDIATRICS AND CONSUMER HEALTH CARE UNIT SINCE FEBRUARY 1991 JAMES B PARSONS 45 WILL SUCCEED MR DODD AT THAT UNIT 9302250105 930225 AT&T SIGNS ACCORD TO DEVELOP TAIWAN'S TELECOMMUNICATIONS NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT SIGNED AN AGREEMENT WITH TAIWAN AIMED AT DEVELOPING THE COUNTRY AS A REGIONAL BUSINESS CENTER THROUGH ENHANCED TELECOMMUNICATIONS THE PACT COMES JUST ONE DAY AFTER AT&T SIGNED A SWEEPING AGREEMENT WITH RIVAL CHINA TO DEVELOP THAT COUNTRY'S BASIC COMMUNICATIONS NETWORK AN AT&T SPOKESMAN SAID BOTH GOVERNMENTS WERE INFORMED IN ADVANCE OF THE AGREEMENTS A LETTER OF INTENT SIGNED BY AT&T AND TAIWAN'S MINISTRY OF ECONOMIC AFFAIRS CALLS ON THE TELECOMMUNICATIONS GIANT TO FORM JOINT VENTURES WITH TAIWAN PARTNERS AIMED AT UPGRADING TAIWAN'S TELECOMMUNICATIONS INDUSTRY THE PACT ALSO IS DESIGNED TO HELP TAIWAN EXPAND ITS FINANCE TRANSPORTATION TECHNOLOGY AND HIGHTECH MANUFACTURING BUSINESSES TO INTERNATIONAL MARKETS THE JOINTVENTURE PROJECTS HAVEN'T YET BEEN IDENTIFIED AN AT&T SPOKESMAN SAID ADDING THAT IT'S PREMATURE TO ESTIMATE HOW MUCH AT&T WILL BENEFIT FROM THE PACT AT&T'S PARTNERSHIP WITH TAIWAN BEGAN IN 1947 WHEN IT BECAME THE FIRST COMPANY TO OFFER LONGDISTANCE TELEPHONE SERVICE BETWEEN TAIWAN AND THE US CURRENTLY AT&T OPERATES THREE COMPANIES THERE AT&T TAIWAN INC A BRANCH OFFICE AT&T TAIWAN TELECOMMUNICATIONS CO A JOINTVENTURE OPERATION FOR MANUFACTURING AND MARKETING TELECOMMUNICATIONS EQUIPMENT AND NCR TAIWAN LTD A MARKETING SUBSIDIARY OF AT&T FOR COMPUTER SYSTEMS AND PERIPHERAL EQUIPMENT 9302250104 930225 ECONOMY DURABLES ORDERS FELL 17 IN JANUARY BUT FACTORY SECTOR IS SAID TO IMPROVE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIGTICKET FACTORY GOODS DROPPED 17 IN JANUARY THE COMMERCE DEPARTMENT REPORTED BUT ANALYSTS SAID THE FIGURES STILL SHOW AN IMPROVING MANUFACTURING SECTOR SEPARATELY A MONEY MAGAZINE/ABC NEWS INDEX OF CONSUMER SENTIMENT FOUND THAT AMERICANS' CONFIDENCE IN THEIR PERSONAL FINANCES PLUNGED CLOSE TO A RECORD LOW IN THE WEEK AFTER PRESIDENT CLINTON'S ECONOMIC ADDRESS OTHER COMPONENTS OF THE SURVEY HOWEVER WEREN'T AS NEGATIVE PEOPLE'S OVERALL CONFIDENCE DECLINED DROPPING THE WEEKLY INDEX TWO POINTS TO MINUS42 THE INDEX WHICH IS DOWN FIVE POINTS FROM A MONTH AGO HAD GAINED 16 POINTS IN THE FIRST EIGHT WEEKS AFTER THE ELECTION THE LATEST RESULTS ARE BASED ON A RANDOM SURVEY OF 1032 ADULTS ACROSS THE COUNTRY ENDING FEB 21 FIFTYSIX PERCENT OF THE RESPONDENTS RATED THEIR FINANCES NEGATIVELY FOUR PERCENTAGE POINTS MORE THAN THE PRIOR WEEK THE SEVENYEAROLD SURVEY'S TWO OTHER MAIN COMPONENTS GAUGING PEOPLE'S VIEWS OF THE NATIONAL ECONOMY AND THEIR WILLINGNESS TO SPEND MONEY HELD STEADY OR ROSE SLIGHTLY OTHER MAJOR INDEXES OF CONSUMER CONFIDENCE NOTABLY THE CONFERENCE BOARD'S AND THE UNIVERSITY OF MICHIGAN'S HAVEN'T YET ASSESSED THE NATION'S MOOD IN THE WAKE OF MR CLINTON'S SPEECH FEB THE COMMERCE DEPARTMENT REPORT ON DURABLE GOODS WASN'T AS BAD AS IT MIGHT FIRST APPEAR BECAUSE JANUARY'S DECLINE FOLLOWS A HUGE 96 RISE IN DECEMBER THAT WAS REVISED UPWARD FROM THE 87 GAIN ORIGINALLY REPORTED ANALYSTS SAID IT WAS VIRTUALLY IMPOSSIBLE FOR SUCH GROWTH TO BE SUSTAINED EVEN SO EXCLUDING THE TRANSPORTATION CATEGORY WHICH FLUCTUATES WIDELY FROM MONTHTOMONTH ORDERS FOR DURABLE GOODS WERE UP 07 IN ADDITION THE LEVEL OF UNFILLED ORDERS INCREASED IN JANUARY FOR THE SECOND MONTH IN A ROW SUGGESTING THAT MANUFACTURERS ARE HAVING DIFFICULTY MEETING THE PICKUP IN BUSINESS THAT HAS OCCURRED OVER THE PAST FEW MONTHS WHAT MANUFACTURING MANAGERS ARE LOOKING FOR TO JUSTIFY AN INCREASE IN OUTPUT IS A CONSISTENT INCREASE IN UNFILLED ORDERS SAID DUN & BRADSTREET CORP ECONOMIST DOUG HANDLER THIS REPORT SHOWS THAT THERE IS CERTAINLY IMPROVEMENT IN THE MANUFACTURING SECTOR HOWEVER THE DROP IN NEW ORDERS INDICATES THAT THE ECONOMY IS STILL ON A SLOW GROWTH PATH WE'RE CERTAINLY NOT BLOWING ANYBODY'S DOOR OFF YET WITH ECONOMIC IMPROVEMENT SAID ALAN GAYLE CHIEF ECONOMIST FOR CRESTAR BANK MOST OF JANUARY'S DECLINE WAS CENTERED IN AIRCRAFT WHICH PUSHED TRANSPORTATION ORDERS DOWN 82 ORDERS FOR ELECTRONIC EQUIPMENT ALSO FELL WHILE ORDERS FOR PRIMARY METALS AND EQUIPMENT INCREASED ORDERS FOR NONDEFENSE CAPITAL GOODS WERE ALSO DOWN BUT EXCLUDING AIRCRAFT AND PARTS THEY WERE UP 02 FOLLOWING A GAIN OF 73 IN DECEMBER THE GROWING BACKLOG OF UNFILLED ORDERS RISING USE OF CAPACITY AND LONGER HOURS FOR FACTORY WORKERS SUGGEST THAT MANUFACTURERS WILL ADD NEW WORKERS THERE IS PRESSURE DEVELOPING BECAUSE OF INCREASED DEMAND AND THE NEXT STEP SHOULD BE HIRING MR GAYLE SAID BUT A RECENT DUN & BRADSTREET SURVEY ISN'T SO OPTIMISTIC IT SHOWS THAT MANUFACTURERS ARE STILL HESITANT ABOUT ADDING NEW EMPLOYEES AND ARE EXPECTING UNIT LABOR COSTS TO INCREASE SOON ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9302250103 930225 ECONOMY VEHICLE SALES ROSE IN MIDFEBRUARY DESPITE RECENT FALL IN SHOWROOM TRAFFIC BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE PACE OF DOMESTIC CAR AND TRUCK SALES ROSE IN MIDFEBRUARY ALTHOUGH SOME DEALERS WERE CONCERNED BY A FALLOFF IN SHOWROOM TRAFFIC AFTER PRESIDENT CLINTON OUTLINED PLANS TO RAISE TAXES THE COMBINED ANNUALIZED SALES PACE OF US BUILT CARS AND LIGHT TRUCKS ROSE TO 116 MILLION VEHICLES FOR THE FEB 1120 PERIOD UP FROM THE 112 MILLION SELLING PACE IN THE PREVIOUS 30DAY PERIOD AND UP SUBSTANTIALLY FROM THE YEAREARLIER SALES PACE OF 10 MILLION VEHICLES AUTO INDUSTRY ANALYSTS SAID IT'S TOO SOON TO JUDGE THE EFFECT OF THE PRESIDENT'S ECONOMIC PLAN ON DEMAND FOR NEW CARS BUT SOME DEALERS EXPRESSED CONCERN THERE IS A TREMENDOUS AMOUNT OF UNCERTAINTY OUT THERE SAID BOB KARLIN PRESIDENT AND GENERAL MANAGER OF SANTA MONICA FORD IN SANTA MONICA CALIF WE'RE SELLING ABOUT HALF OF WHAT WE USUALLY SELL SINCE THE PRESIDENT'S SPEECH IF THIS IS ANY INDICATION OF WHAT'S TO COME WE'RE GOING TO HAVE SERIOUS PROBLEMS WITH SALES IN THE MIDWEST AND NORTHEAST HOWEVER DEALERS SAID BAD WEATHER MAY HAVE SCARED OFF MORE SHOPPERS THAN THE PRESIDENT'S PLAN CLEARLY THERE IS A LOT OF NOISE IN THE SYSTEM RIGHT NOW SAID JACK KIRNAN SALOMON BROTHERS' AUTO ANALYST THERE WERE ONLY THREE DAYS OF DATA IN THE LATEST SALES REPORT TO ASSESS CLINTON'S EFFECT IT'S NOT ENOUGH TO TELL WHAT EFFECT IT WILL HAVE THE FINAL 10 DAYS WILL GIVE US A CLEANER PICTURE THE SEASONALLY ADJUSTED ANNUALIZED CAR SALES PACE WAS 64 MILLION IN THE FEB 1120 PERIOD ABOUT EVEN WITH THE SELLING PACE FOR THE PREVIOUS 30 DAYS MEANWHILE LIGHT TRUCK SALES SURGED TO A 51 MILLIONVEHICLE PACE IN MIDFEBRUARY FROM A 48 MILLIONVEHICLE RATE IN THE PREVIOUS 30DAY PERIOD OVERALL AMERICANS PURCHASED 323446 CARS AND LIGHT TRUCKS IN THE LATEST 10DAY PERIOD UP 52 FROM THE 307464 SOLD IN THE YEAREARLIER PERIOD FORD MOTOR CO'S TOTAL VEHICLE SALES IN THE FEB 1120 PERIOD CONTINUED TO OUTPACE INDUSTRYWIDE SALES THE NO 2 AUTO MAKER SOLD 95504 CARS AND LIGHT TRUCKS IN THE LATEST 10DAY PERIOD UP 91 FROM A YEAR AGO SALES OF ITS USBUILT CARS ROSE 49 WHILE SALES OF ITS NORTH AMERICANMADE LIGHT TRUCKS SOARED 155 GENERAL MOTORS CORP SOLD 112542 CARS AND LIGHT TRUCKS IN MIDFEBRUARY ABOUT EVEN WITH THE YEAREARLIER PERIOD A 241 JUMP IN SALES OF ITS LIGHT TRUCKS HELPED OFFSET A 106 DROP IN SALES OF ITS PASSENGER CARS SATURN WAS THE ONLY GM DIVISION TO POST A GAIN IN SALES IN THE LATEST 10DAY PERIOD A GM SPOKESMAN CITED REDUCED SALES TO CARRENTAL COMPANIES AS THE REASON FOR THE SALES DOWNTURN SOME JAPANESE AUTO MAKERS ALSO SAW THEIR SALES SKID IN THE LATEST 10DAY PERIOD HONDA MOTOR CO'S TOTAL VEHICLE SALES TUMBLED 203 IN MIDFEBRUARY LARGELY DRAGGED DOWN BY A 41 PLUNGE IN SALES OF ITS ACCORD AT THE END OF JANUARY THERE WAS A 165DAY SUPPLY OF UNSOLD ACCORDS WHICH IS MORE THAN DOUBLE THE 65DAY SUPPLY LEVEL CONSIDERED IDEAL TOYOTA MOTOR CORP'S TOTAL VEHICLE SALES WERE OFF 144 HURT BY A 25 DROP IN CAMRY SALES NISSAN MOTOR CO HOWEVER SAID ITS VEHICLE SALES CLIMBED 324 IN MIDFEBRUARY AND MAZDA MOTOR CO REPORTED A 377 JUMP IN ITS VEHICLE SALES 9302250102 930225 WEDNESDAY'S MARKETS BOND PRICES DECLINE STOCKS GAIN AFTER RECENT RALLY YIELD ON 30YEAR ISSUE JUMPS BACK TO 688 BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE POWERFUL BOND MARKET RALLY STALLED LEAVING PRICES SHARPLY LOWER BUT STOCK PRICES SURGED AS BARGAINHUNTERS SCOOPED UP BATTERED DRUG AND HEALTHCARE STOCKS THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE JUMPED 3323 POINTS TO 335650 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX CLIMBED 607 TO 44087 AND THE NASDAQ COMPOSITE INDEX SOARED 1090 TO 66246 THE BOND MARKET'S REVERSAL CAME AFTER THE RECENT SURGE IN BOND PRICES DROVE THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE DOWN TO 682 ITS LOWEST LEVEL EVER YESTERDAY'S SLUMP IN PRICES LIFTED THE YIELD TO 688 ANALYSTS SAID INVESTORS ARE BECOMING INCREASINGLY NERVOUS ABOUT SOARING BOND PRICES MICHAEL KASTNER OPTIONS STRATEGIST AT SOCIETE GENERALE SAID MANY INVESTORS PURSUED OPTIONS TRADING STRATEGIES YESTERDAY THAT SUGGESTED THEY BELIEVE BOND PRICES ARE HEADED FOR A DECLINE MY READING IS THAT INVESTORS THINK THE YIELD ON THE LONG BOND HAS REACHED A TEMPORARY LOW MR KASTNER SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID BOND PRICES MAY SUFFER IN COMING WEEKS BECAUSE OF THE IMPROVING ECONOMY AND THE BUMPY ROAD AHEAD FOR THE CLINTON ADMINISTRATION'S DEFICITREDUCTION PLANS ALL YOU NEED IS A FEW MORE MONTHS OF GOOD ECONOMIC NUMBERS AND THE GAME IS OVER IN THE BOND MARKET MR SOLLOWAY SAID THERE IS PROBABLY MORE POTENTIAL IN STOCKS OVER THE NEXT YEAR THAN THERE IS IN BONDS STOCKS SHOWED SOME OF THAT POTENTIAL YESTERDAY AS INVESTORS FLOCKED TO SECTORS THEY SHUNNED ONLY DAYS BEFORE BESIDES DRUGS AND HEALTHCARE STOCKS THE BIG WINNERS INCLUDED BIOTECHNOLOGY MEDICAL SUPPLIES AND ADVANCED MEDICAL TECHNOLOGY THIS IS A TIME REALLY TO BE LOOKING FOR BARGAINS MR SOLLOWAY SAID HE NOTED THAT WHILE THE OUTLOOK FOR THE PHARMACEUTICAL INDUSTRY REMAINS TENUOUS IN THE FACE OF THE CLINTON ADMINISTRATION'S HEALTHCARE REFORM PROGRAM THE STOCKS NEVERTHELESS ARE CHEAP ENOUGH TO BE ATTRACTIVE MR SOLLOWAY ADDED HOWEVER THAT THE BEST LONGTERM BUYS IN THE STOCK MARKET MAY STILL LIE AMONG THE ECONOMICALLY SENSITIVE ISSUES THEY'RE THE ONES THAT ARE GOING TO PUT IN THE MOST CONSISTENT PERFORMANCE IN THE YEAR AHEAD AS THE ECONOMY IMPROVES AND CORPORATE PROFITS GROW HE SAID ALAN R ACKERMAN MARKET STRATEGIST AT REICH & CO NOTED THAT TRADING HAS BECOME INCREASINGLY TREACHEROUS AS PRICES FLUCTUATE WIDELY DAY TO DAY HE POINTED TO THE STRONG REBOUND IN AUTO STOCKS YESTERDAY AFTER A SHARP SELLOFF TUESDAY MORE INVESTORS ARE TRYING TO TAKE ADVANTAGE OF THE SWINGS SO IT'S BEST TO KEEP ONE'S TRADING SHOES ON MR ACKERMAN SAID HE WHO HESITATES IS LOST WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 019 TO 9450 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2989 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1224 ISSUES ROSE AND 697 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK ISSUE LOST 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16263 MARKS AND 11748 YEN COMPARED WITH 16230 MARKS AND 11708 YEN TUESDAY 9302250101 930225 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 303 40 TO 89 DAYS 305 90 TO 149 DAYS 307 150 TO 179 DAYS 310 180 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 262 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 3 ONE MONTH 304 THREE MONTHS 3125 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 3 90 DAYS 302 120 DAYS 304 150 DAYS 305 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 3/16 3 1/16 FOUR MONTHS 3 1/4 3 1/8 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 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 723 60 DAYS 732 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 722 60 DAYS 731 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 9302250100 930225 TRAVEL AMERICAN AIR'S FLIERS WON'T GET FARE WARNINGS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FLIERS HATE SURPRISES BUT NOW THEY'VE GOT ONE MORE TO CONTEND WITH UNEXPECTED FARE CHANGES RESPONDING TO A JUSTICE DEPARTMENT PRICEFIXING LAWSUIT AIRLINES ARE RELUCTANTLY CURTAILING INFORMATION ABOUT AIR FARES BOTH THE INDUSTRY AND TRAVEL AGENTS FEAR THE MOVE COULD INCREASE TICKET PRICES AND DISCOURAGE CUSTOMERS FROM FLYING YESTERDAY AMERICAN AIRLINES CEASED RELAYING INFORMATION ABOUT ADVANCE FARE CHANGES INTO THE COMPUTERRESERVATION SYSTEM WHICH IS USED BY TRAVEL AGENCIES AND THE AIRLINE ITSELF AGENTS WILL ONLY BE ABLE TO GUARANTEE A TICKET PRICE ON THE DAY A CUSTOMER CALLS AND WILL NOT BE ABLE TO ALERT TRAVELERS TO COMING FARE SWINGS THE NATION'S LARGEST AIRLINE ALSO WILL NOT INDICATE THE FINAL DATE OF A PROMOTIONAL FARE UNLESS THAT DATE HAS BEEN ADVERTISED IN THE GENERAL MEDIA ALL FARE CHANGES WILL BE DONE INSTANTANEOUSLY WITH NO ADVANCE WARNING AN AMERICAN OFFICIAL SAYS THE FARE YOU BOOK TODAY COULD BE GONE TOMORROW WHEN YOU BUY THE TICKET THE MOVE REFLECTS THE AMR CORP UNIT'S DECISION TO COMPLY WITH A JUSTICE DEPARTMENT CONSENT DECREE THAT THE GOVERNMENT DESIGNED TO SETTLE THE PRICEFIXING LAWSUIT AMERICAN CALLING THE GOVERMENT'S ALLEGATIONS WITHOUT MERIT REFUSED TO SIGN THE DECREE BUT THE AIRLINE IS ADHERING TO THE SAME DECREE IT IS SIMULTANEOUSLY FIGHTING IN COURT AMERICAN SAYS IT WANTS TO PREEMPT SIMILAR LAWSUITS THAT MIGHT BE FILED AGAINST IT IF IT LOSES THE CASE TWO AIRLINES UAL CORP'S UNITED AIRLINES AND USAIR GROUP INC'S USAIR HAVE ALREADY SIGNED THE DECREE ALTHOUGH THEY ADMIT NO WRONGDOING UNITED AND USAIR WILL IMPLEMENT THE RESTRICTIVE TERMS OF THE ORDER AFTER IT RECEIVES APPROVAL FROM THE US DISTRICT COURT IN WASHINGTON A DECISION IS EXPECTED AFTER MARCH 15 OTHER CARRIERS NAMED IN THE LAWSUIT ALSO APPEAR TO BE MODIFYING THEIR PRICING ACTIVITIES AND ARE LIKELY TO FOLLOW AMERICAN'S MOVE A SPOKESMAN FOR CONTINENTAL AIRLINES HOLDINGS INC'S CONTINENTAL AIRLINES SAYS THE CARRIER HAS MADE ADJUSTMENTS IN ITS PRICING BEHAVIOR BUT HE DECLINES TO ELABORATE WINGS HOLDINGS INC'S NORTHWEST AIRLINES SAYS IT'S COMPLYING WITH PARTS OF THE DECREE DELTA AIR LINES TRANS WORLD AIRLINES AND ALASKA AIR GROUP INC'S ALASKA AIRLINES SAY THEY HAVEN'T CHANGED PRICING PATTERNS THE SUIT ALSO NAMES AIRLINE TARIFF PUBLISHING CO CHANTILLY VA WHICH IS COMMONLY OWNED BY THE AIRLINES AND IS A COMPUTERIZED DATABASE THROUGH WHICH THE CARRIERS SHARE THOUSANDS OF PRICING CHANGES DAILY IN DECEMBER THE JUSTICE DEPARTMENT CHARGED THE AIRLINES AND THE PUBLISHING COMPANY WITH ILLEGALLY RAISING TICKET PRICES THROUGH THE FARE DATABASE THE DECREE SEEKS TO MUFFLE THE ELECTRONIC DIALOGUE THAT THE DEPARTMENT SAYS IS USED TO SIGNAL PRICE CHANGES TO DETERMINE WHETHER RIVAL CARRIERS ARE GOING TO MATCH FARE INITIATIVES AIRLINES HAVE ALSO BEEN ACCUSED OF USING THE COMPUTERRESERVATION SYSTEM TO DECEIVE CONSUMERS FOR EXAMPLE AN AIRLINE ELECTRONICALLY INDICATES THAT A FARE WILL RISE FRIDAY HOPING TO STIMULATE TICKET BUYING THURSDAY BUT FRIDAY THE FARE DOESN'T CHANGE WHILE THE CONSENT DECREE MAY ELIMINATE SUCH PRACTICES AIRLINES AND TRAVEL AGENTS SAY THE DECREE WILL DENY TRAVELERS BASIC FARE INFORMATION AND PREVENT AGENTS FROM DOING THEIR JOB WHILE AIRLINES HAVE ALWAYS CHANGED AT LEAST SOME FARES WITHOUT WARNING TRAVEL AGENTS HAVE BEEN ABLE TO TELL CONSUMERS WHEN MOST CHANGES WERE TO OCCUR WHEN WE KNOW THERE'S A PLANNED FARE INCREASE WE'LL CALL OUR CLIENTS AND TELL THEM SAYS STEVE HANNER A TRAVEL AGENT AT WINDSOR TRAVEL CORP IN HOUSTON ADDS PAUL RUDEN SENIOR VICE PRESIDENT OF THE AMERICAN SOCIETY OF TRAVEL AGENTS WHICH REPRESENTS 15000 TRAVEL AGENCIES WHAT TRAVEL AGENTS ARE ALL ABOUT IS DRIVING UP DEMAND BY PROVIDING INFORMATION AND THAT WILL BE LOST CONSUMERS HE SAYS WILL ALSO TURN ON AIRLINES AND AGENTS WHEN THEY DISCOVER THAT A TICKET THEY BOUGHT YESTERDAY HAS JUST GONE DOWN IN PRICE BUT THEY WERE NEVER TOLD OF THE CHANGE PROMOTIONAL SALES AGENTS SAY WILL ALSO DECREASE BECAUSE AIRLINES WILL NOT BE WILLING TO SPEND THE MONEY ON ADVERTISING THE NEW FARE WHICH THE CONSENT DECREE REQUIRES AMERICAN AGREES THAT ITS MOVE WILL HURT CONSUMERS AND ITSELF AT THE END OF EVERY UNADVERTISED SALE YOU ENGENDER ILL WILL BECAUSE CUSTOMERS WILL BE SURPRISED THAT THE CHEAP FARES ARE GONE THE AMERICAN OFFICIAL SAYS THAT'S NOT A GOOD POSITION FOR US TO BE IN AMERICAN SAYS THAT IF THE AIRLINES WIN THEIR CASE AGAINST THE GOVERNMENT THE CARRIER WILL RETURN TO ITS NORMAL PRICING PRACTICES BY CONTRAST UNITED AND USAIR BY SIGNING THE DECREE ARE BOUND TO ITS TERMS FOR 10 YEARS BY COMPLYING WITH THE DECREE AMERICAN AND OTHER AIRLINES HOPE TO AVOID A REPEAT OF A CLASSACTION LAWSUIT FILED IN US DISTRICT COURT IN ATLANTA A JUDGE HAS YET TO RULE ON A PROPOSED SETTLEMENT 9302250099 930225 YOUR MONEY MATTERS TAXES 1993 HOW TO AVOID INVESTMENT TAX TRAPS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL CALCULATING YOUR TAX BILL ON ALL THOSE SPARKLING INVESTMENT GAINS FROM LAST YEAR BE CAREFUL TAX ADVISERS WARN THAT IT'S REMARKABLY EASY TO MAKE COSTLY ERRORS BECAUSE OF CONFUSION OR UNFAMILIARITY WITH A FEW SURPRISINGLY COMPLEX PROVISIONS MUTUALFUND INVESTORS MUST HACK THEIR WAY THROUGH AN ESPECIALLY DENSE JUNGLE OF TAX RULES ABOUT GAINS AND LOSSES WHEN SELLING FUND SHARES WE GET MORE CALLS FROM SHAREHOLDERS WITH QUESTIONS ABOUT TAX REPORTING THAN ANY OTHER SINGLE TOPIC SAYS JOHN G TAFT PRESIDENT OF VOYAGEUR FUND MANAGERS IN MINNEAPOLIS MORE FUNDS ARE TRYING TO HELP THEY ARE SENDING SHAREHOLDERS DETAILED STATEMENTS SHOWING THE COST OF THEIR SHARES BASED ON ONE OR MORE OF THE VARIOUS VALUATION METHODS ALLOWED BY THE INTERNAL REVENUE SERVICE BUT MANY OTHER FUNDS DON'T LEAVING IT UP TO SHAREHOLDERS TO FIGURE IT OUT FOR THEMSELVES DON'T RELY ON COMMON SENSE WHEN IT COMES TO TAXES WHAT MAY SEEM LIKE THE OBVIOUS ANSWER TO QUESTIONS INVOLVING FUNDS OR BONDS OFTEN IS TOTALLY WRONG SAYS JEAN M MARTIN PRESIDENT OF MEREDITH MARTIN & KAYE INC A NEW YORK INVESTMENT ADVISORY FIRM START BY SEPARATING YOUR VARIOUS FORMS OF INVESTMENT INCOME INVESTORS WHO RECEIVED MORE THAN 400 OF INTEREST OR DIVIDENDS REPORT DETAILS ON SCHEDULE B OF FORM 1040 CAPITAL GAINS OR LOSSES GO ON SCHEDULE D SELLERS OF STOCKS BONDS COMMODITIES AND OTHER PROPERTY SHOULD RECEIVE FORM 1099B OR A SIMILAR FORM FROM THEIR BROKER SHOWING THE PROCEEDS DETAILS OF REAL ESTATE SALES ARE ON FORM 1099S MUTUAL FUNDS SEND SHAREHOLDERS SPECIAL FORMS FORM 1099DIV SHOWING WHATEVER DISTRIBUTIONS THEY MADE INVESTMENTS HELD FOR ONE YEAR OR LESS TYPICALLY ARE CONSIDERED SHORTTERM WHILE INVESTMENTS HELD FOR MORE THAN A YEAR GENERALLY ARE CLASSIFIED AS LONGTERM THAT DIFFERENCE CAN BE SIGNIFICANT FOR UPPERINCOME TAXPAYERS BECAUSE LONGTERM GAINS IN 1992 ARE TAXED AT A MAXIMUM RATE OF 28 WHILE ORDINARY INCOME IS TAXED AT A TOP STATED RATE OF 31 THIS DIFFERENCE WOULD BE EVEN MORE IMPORTANT IF PRESIDENT CLINTON'S TAX PACKAGE IS APPROVED THE PRESIDENT WANTS TO INCREASE THE TOP STATED RATE ON ORDINARY INCOME TO 396 WHILE LEAVING THE TOP CAPITAL GAINS RATE AT 28 FIGURE GAINS AND LOSSES SEPARATELY ON SHORTTERM AND LONGTERM HOLDINGS WHILE LOSSES ALWAYS ARE PAINFUL THEY CAN ALSO BE USEFUL IF LOSSES EXCEEDED GAINS LAST YEAR YOU TYPICALLY MAY DEDUCT AS MUCH AS 3000 OF THE EXCESS OR AS MUCH AS 1500 FOR A MARRIED PERSON FILING SEPARATELY ADDITIONAL AMOUNTS CAN BE CARRIED OVER INTO FUTURE YEARS IRS PUBLICATION 17 INCLUDES A USEFUL SUMMARY OF HOW TO DO THESE CALCULATIONS ALONG WITH AN EXAMPLE STOCK SPINOFFS WHERE A COMPANY DISTRIBUTES SHARES OF A SUBSIDIARY TO ITS SHAREHOLDERS CAN POSE SPECIAL COMPLICATIONS FOR INVESTORS WHO THEN SELL SOME OR ALL OF THOSE NEW SHARES JUST HOW DO YOU FIGURE YOUR GAIN OR LOSS WHEN YOU DIDN'T ACTUALLY LAY OUT HARD CASH FOR THE NEW STOCK WHAT DO YOU PUT DOWN AS THE COST BASIS OF THOSE SHARES IF THE COMPANY DOESN'T SEND YOU A FORM EXPLAINING HOW TO DO THE MATH CALL THE INVESTOR RELATIONS DEPARTMENT AND ASK FOR HELP FOR EXAMPLE BAXTER INTERNATIONAL INC HAS PREPARED SPECIAL EXPLANATIONS FOR SHAREHOLDERS IN CONNECTION WITH ITS SPINOFF LATE LAST YEAR OF CAREMARK INTERNATIONAL BONDS CAN ALSO POSE QUESTIONS THAT ARE A LOT THORNIER THAN INVESTORS EXPECT SOMETIMES JUST SEPARATING INTEREST INCOME FROM CAPITAL GAINS OR LOSSES CAN BE TOUGH SAYS ROBERT WILLENS A SENIOR VICE PRESIDENT AT LEHMAN BROTHERS INVESTORS WHO BUY BONDS IN THE RESALE MARKETS AT PRICES ABOVE OR BELOW FACE VALUE OFTEN CAN RUN INTO UNANTICIPATED TROUBLE AT TAX TIME ONE OF THE TRICKIEST AREAS INVOLVE PREMIUM MUNICIPAL BONDS THOSE SELLING FOR MORE THAN THEIR FACE VALUE SUPPOSE AN INVESTOR PAID 12000 SEVERAL YEARS AGO FOR A MUNICIPAL BOND WITH A FACE VALUE OF 10000 THE INVESTOR HELD THE BOND UNTIL IT CAME DUE LAST YEAR THAT INVESTOR MIGHT ASSUME A 2000 CAPITAL LOSS THAT ANSWER SURE WOULD BE LOGICAL BUT IT'S WRONG SAYS MR WILLENS THE CORRECT ANSWER NO LOSS AT ALL BECAUSE OF A RULE REQUIRING INVESTORS TO AMORTIZE PREMIUMS ON TAXFREE BONDS IT GETS EVEN TRICKIER IF THE INVESTOR SOLD THE BOND LAST YEAR FOR SAY 11000 THAT MIGHT SEEM LIKE A 1000 CAPITAL LOSS BUT IT COULD ACTUALLY TURN INTO A GAIN DEPENDING ON WHEN THE INVESTOR BOUGHT THE BOND AND HOW MUCH OF THE PREMIUM HAD BEEN AMORTIZED SAYS MRS MARTIN OF MEREDITH MARTIN ORIGINALISSUE DISCOUNT BONDS ALSO OFFER SPECIAL COMPLEXITIES BEST LEFT TO PROFESSIONAL TAX PREPARERS EVEN PLAIN VANILLA TREASURY AND CORPORATE BONDS CAN CREATE TAX HEADACHES IF INVES BOUGHT THEM AT A DISCOUNT OR PREMIUM AS MR WILLENS NOTES IT'S OFTEN TRICKY TO FIGURE OUT IF MONEY YOU RECEIVE FROM SELLING THESE BONDS OR FROM CASHING THEM IN AT MATURITY REPRESENTS A CAPITAL GAIN OR LOSS INTEREST INCOME OR A COMBINATION STILL SOME OF THE KNOTTIEST TAX PROBLEMS ARE FACED BY MUTUAL FUND INVESTORS MANY OF WHOM BOUGHT FUNDS INSTEAD OF INDIVIDUAL STOCKS AND BONDS BECAUSE THEY WANTED TO SIMPLIFY THEIR LIVES TAKE HEART WHILE THERE ARE MANY UNUSUAL COMPLICATIONS UNDERSTANDING THE BASICS CAN GO A LONG WAY TOWARD EASING THE PAIN HERE IS A LOOK AT THE GROUND RULES AS WELL AS SOME TIPS FROM TAX ADVISERS ON HOW TO AVOID SOME OF THE MOST COMMON MISTAKES FUND SHAREHOLDERS TYPICALLY RECEIVE MONEY IN THE FORM OF DIVIDENDS AND CAPITALGAINS DISTRIBUTIONS THE DIVIDENDS REPRESENT AN INVESTOR'S SHARE OF THE DIVIDENDS OR INTEREST PAID BY THE STOCKS OR BONDS HELD BY THE FUND CAPITALGAINS DISTRIBUTIONS ARE THE INVESTOR'S SHARE OF THE MONEY THE FUND MAKES FROM SELLING SECURITIES REMEMBER THAT EVEN TAXFREE MUNICIPAL BOND FUNDS CAN GENERATE TAXABLE CAPITAL GAINS IF THEY SELL BONDS FROM THEIR PORTFOLIO AT A PROFIT FUND INVESTORS ALSO OWE TAXES ON CAPITAL GAINS THEY REALIZE WHEN THEY SELL FUND SHARES AT A PROFIT DON'T FORGET THAT EVERY TIME YOU MOVE MONEY FROM ONE FUND TO ANOTHER YOU MAY INCUR A CAPITAL GAIN OR LOSS THAT'S TRUE EVEN WITH TRANSFERS BY TELEPHONE WITHIN A FAMILY OF FUNDS INVESTORS OWE 1992 TAXES ON DIVIDENDS DECLARED AND MADE PAYABLE IN 1992'S FOURTH QUARTER EVEN IF NOT ACTUALLY PAID UNTIL JANUARY OF THIS YEAR TAXFREE FUNDS TYPICALLY PAY DIVIDENDS THAT ARE FREE FROM FEDERAL INCOME TAXES BUT MANY STATES TAX RESIDENTS ON DIVIDENDS FROM FUNDS THAT INVEST IN OUTOFSTATE BONDS TO AVOID THIS MANY INVESTORS TURN TO SINGLESTATE FUNDS WHICH INVEST ONLY IN BONDS ISSUED WITHIN THEIR HOME STATE KEEP TRACK OF REINVESTED DIVIDENDS MANY INVESTORS INSTRUCT THEIR FUNDS TO REINVEST ALL THEIR DISTRIBUTIONS AUTOMATICALLY IN NEW FUND SHARES RATHER THAN SENDING THEM CASH BUT TO THE EXTENT THOSE DISTRIBUTIONS ARE TAXABLE YOU HAVE TO PAY TAX ON THEM JUST AS THOUGH YOU HAD RECEIVED THE CASH ALSO BE SURE TO INCLUDE REINVESTED DISTRIBUTIONS WHENEVER YOU SELL AND ARE FIGURING GAINS OR LOSSES WATCH OUT FOR FOREIGN TAXES FUNDS THAT INVEST IN FOREIGN SECURITIES CAN CHOOSE TO ALLOW INVESTORS TO CLAIM A DEDUCTION FOR TAXES PAID TO ANOTHER COUNTRY OR A US POSSESSION IF SO THE FUND SHOULD NOTIFY YOU THEN YOU MAY CLAIM A TAX CREDIT ON FORM 1116 OR TAKE AN ITEMIZED DEDUCTION ON SCHEDULE A OF FORM 1040 TYPICALLY IT'S BETTER TO TAKE THE TAX CREDIT TAX ADVISERS SAY BUT FORM 1116 CAN BE VERY DIFFICULT TO DECIPHER SEE IRS PUBLICATION 514 FOR HELP FEES AND OTHER CHARGES FEES OR COMMISSIONS THAT INVESTORS PAY TO BUY MUTUAL FUND SHARES CAN'T BE DEDUCTED INSTEAD THEY TYPICALLY ARE ADDED TO THE INVESTOR'S PURCHASE PRICE AND CAN BE USED WHEN CALCULATING GAINS OR LOSSES CALCULATING GAINS OR LOSSES THIS IS ONE OF THE TRICKIEST AREAS BECAUSE THERE ARE SEVERAL DIFFERENT WAYS TO FIGURE OUT HOW MUCH YOU PAID FOR SHARES YOU SOLD ONE OF THE EASIEST FOR INVESTORS WHO BOUGHT SHARES AT VARIOUS TIMES AND PRICES IS THE AVERAGE BASIS METHOD CALCULATE THE AVERAGE PRICE PER SHARE THAT YOU PAID FOR ALL THE SHARES AND USE THAT AS THE COST NUMEROUS FUNDS ALREADY DO THIS FOR THEIR SHAREHOLDERS ONCE YOU USE THIS METHOD YOU MUST CONTINUE USING IT FOR THAT SAME FUND IN THE FUTURE THE SPECIFIC SHARE IDENTIFICATION METHOD REQUIRES THE INVESTOR TO SPECIFY EXACTLY WHICH SHARES WERE SOLD THIS CAN ENABLE INVESTORS WHO MADE PROFITS TO TRIM THEIR TAX BILL BY SELECTING THE MOST EXPENSIVE SHARES THEY PURCHASED BUT THE IRS SAYS YOU MUST HAVE SPECIFIED TO YOUR BROKER OR FUND TO SELL THOSE PARTICULAR SHARES AT THE TIME OF THE SALE THE IRS ALSO SAYS YOU MUST RECEIVE WRITTEN CONFIRMATION EVEN THOUGH FUNDS TYPICALLY DON'T DO THIS ANOTHER METHOD OF CALCULATING THE COST BASIS OF MUTUAL FUND SHARES ASSUMES THAT THE INVESTOR SOLD WHATEVER SHARES WERE PURCHASED FIRST THIS IS KNOWN AS THE FIRSTIN FIRSTOUT METHOD IT CAN BE ADVANTAGEOUS FOR HOLDERS OF FUNDS WHOSE VALUE PLUNGED BECAUSE IT COULD RESULT IN THE LARGEST CAPITAL LOSS BUT IT COULD BE BAD FOR OTHERS BECAUSE WITH MANY FUNDS THE SHARES YOU PURCHASED FIRST WERE THE CHEAPEST AND THUS SELLING THEM RESULTS IN THE HIGHEST TAX BILL FOR ADDITIONAL DETAILS CONSULT IRS PUBLICATION 564 MUTUAL FUND DISTRIBUTIONS SEVERAL FUNDS SUCH AS VANGUARD GROUP AND PUTNAM PUBLISH BOOKLETS ON THE SUBJECT 9302250098 930225 LETTERS TO THE EDITOR SCRATCH A BUSINESSMAN AND FIND A SOCIALIST PAUL A GIGOT'S FEB 12 POTOMAC WATCH COLUMN CHAMBER MAIDS BIG BUSINESS COURTS CLINTON EDITORIAL PAGE NICELY DEMONSTRATES MY LONGAGO ECONOMICS PROFESSOR'S APHORISM SCRATCH A BUSINESSMAN AND YOU'LL FIND A SOCIALIST TURN OVER NEARLY ANY SUBSIDY TAX LOOPHOLE INDUSTRIAL POLICY REGULATORY SCHEME DUMPING COMPLAINT ETC AND ALL TOO OFTEN YOU FIND SOME STALWART OF FREE ENTERPRISE CREATING ECONOMIC HAVOC WHILE TRYING TO TILT THE PLAYING FIELD HIS WAY IT IS BY NO MEANS CLEAR THAT WOOLLYMINDED ACADEMICS OR AGENDADRIVEN SOCIAL REFORMERS DO MORE DAMAGE THAN CAPTAINS OF INDUSTRY 9302250097 930225 FIRST FEDERAL SAVINGS OF UTAH SALT LAKE CITY FIRST FEDERAL SAVINGS BANK SAID ITS SHAREHOLDERS HAVE APPROVED THE BANK'S ACQUISITION BY WASHINGTON FEDERAL SAVINGS OF SEATTLE THE ACQUISITION IS EXPECTED TO CLOSE MARCH 12 FIRST FEDERAL SAID WASHINGTON FEDERAL WILL PAY 17 A SHARE FOR 21 MILLION FIRST FEDERAL COMMON SHARES IN A TRANSACTION VALUED AT 364 MILLION FIRST FEDERAL'S 10 OFFICES WILL OPERATE AS THE UTAH DIVISION OF WASHINGTON FEDERAL SAVINGS ALLOWING THE THRIFT TO EXPAND ITS MARKET 9302250096 930225 MARKETSCAN DECAF LOSES FAVOR WITH SEEKERS OF FLAVOR BY KATHLEEN DEVENY COFFEE MARKETERS COULD USE A SHOT OF CAFFEINE WITH CONSUMERS' GROWING QUEST FOR MORE HEALTHFUL FARE ONE WOULD THINK SALES OF DECAFFEINATED COFFEE WOULD BE PERKING ALONG THERE'S JUST ONE PROBLEM JAVA DEVOTEES DON'T LIKE THE WAY MOST DECAF TASTES THE PREFERENCE FOR FLAVORFUL COFFEES WITH A KICK HAS HELPED TURN GROUND DECAFFEINATED COFFEES INTO ONE OF THE FASTESTDECLINING CATEGORIES IN THE SUPERMARKET DECAF SALES IN SUPERMARKETS DROPPED 10 TO 835 MILLION IN THE 13 WEEKS ENDED DEC 27 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE NEARLY EVERY DECAF BRAND SUFFERED IN THE QUARTER SALES OF FOLGERS MADE BY PROCTER & GAMBLE CO FELL 7 TO 314 MILLION DURING THE QUARTER SALES OF MAXWELL HOUSE MADE BY THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS DIDN'T FARE MUCH BETTER DECLINING 61 TO 179 MILLION PEOPLE ARE TRYING TO CONSUME LESS CAFFEINE FOR HEALTH REASONS SAYS KEN TOLTZ VICE PRESIDENT OF MARKETING FOR BROTHERS GOURMET PRODUCTS INC A DENVERBASED COMPANY THAT SELLS GOURMET COFFEES TO SUPERMARKETS THEY SWITCH TO DECAF THEY SAY ICK' AND THEY STOP DRINKING COFFEE ALTOGETHER COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF FASTESTDECLINING PRODUCTS IS BASED ON SCANNER DATA GATHERED FROM SUPERMARKETS EACH QUARTER INFORMATION RESOURCES RANKS 292 CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE CHANGE IN DOLLAR VOLUME FROM THE YEAREARLIER PERIOD THOUGH GROWTH OFTEN COMES FROM NEW PRODUCTS OR PUMPEDUP PROMOTIONAL BUDGETS SALES OF GROCERY PRODUCTS DECLINE FOR A WIDE VARIETY OF REASONS CONSUMERS' DESIRE FOR MORE HEALTHFUL FARE FOR EXAMPLE KEPT FROZEN PREPARED VEGETABLES AT THE TOP OF THE ROSTER OF FASTESTDECLINING CATEGORIES FOR THE SECOND QUARTER IN A ROW QUARTERLY SALES OF THE VEGETABLES WHICH TYPICALLY COME SLATHERED IN CREAM BUTTER OR CHEESE SAUCES PLUNGED 30 TO 29 MILLION SUPERMARKET SALES OF SOME PRODUCTS SUCH AS TRASH BAGS DECLINED BECAUSE SHOPPERS ARE BUYING MORE OF THEM AT OTHER OUTLETS SUCH AS MASS MERCHANDISERS AND DRUGSTORES FLUCTUATING COMMODITY PRICES PLAYED A ROLE IN THE CURRENT PEANUTBUTTER CRUNCH THOUGH DOLLAR SALES OF PEANUT BUTTER DROPPED 13 UNIT VOLUME FELL ONLY SLIGHTLY SIMILARLY A RECORD HARVEST OF ALASKAN SALMON LAST SUMMER DROVE DOWN PRICES OF THE CANNED FISH AND RESULTED IN A BIG DOLLAR SALES DROP THOUGH UNIT VOLUME ROSE ONE PRODUCT ACCOUNTED FOR THE BULK OF THE DECLINE IN SALES OF REFRIGERATED COOKIE AND BROWNIE DOUGH PILLSBURY CO SAYS OVEN LOVIN' TUBS OF REFRIGERATED COOKIE DOUGH FELL OUT OF FAVOR WITH CONSUMERS GROUND DECAFFEINATED WASN'T THE ONLY COFFEE PRODUCT THAT MANY CONSUMERS AVOIDED DURING THE QUARTER SALES OF INSTANT COFFEE EXCLUDING DECAFFEINATED VARIETIES FELL 12 TO 1151 MILLION DURING THE QUARTER SALES OF MARKETLEADER TASTER'S CHOICE MADE BY A UNIT OF NESTLE SA DECLINED 12 WHILE INSTANT VARIETIES OF FOLGERS AND MAXWELL HOUSE DROPPED 14 AND 18 RESPECTIVELY THOUGH THE INSTANT BREWS WERE CONSIDERED AN IMPRESSIVE TECHNOLOGY WHEN THEY WERE INTRODUCED IN 1939 YOUNGER CONSUMERS THESE DAYS AREN'T IMPRESSED WITH THE PRODUCTS CONCEDES A SPOKESWOMAN FOR NESTLE THE PLIGHT OF INSTANT COFFEES AS WELL AS THE SLUGGISH SALES OF DECAF VARIETIES SEEMS TO CONFIRM THE CONTENTION OF SOME MARKETING CONSULTANTS THAT TASTE EVEN MORE THAN HEALTH AND CONVENIENCE IS CONSUMERS' TOP PRIORITY ONCE THEY'RE ROAMING RETAILERS' AISLES INDEED SALES OF DECAFFEINATED GROUND COFFEE ON A POUND BASIS FELL 87 WHILE TOTAL POUND SALES OF ALL VARIETIES OF COFFEE WERE FLAT DOLLAR SALES OF ALL TYPES OF COFFEE DROPPED 59 IN THE FOURTH QUARTER TO 6968 MILLION PARTLY BECAUSE OF PRICE CUTTING TASTE HAS SHAPED THE DRINKING HABITS OF CARL NASH DIRECTOR OF STRATEGIC PLANNING FOR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ABOUT A YEAR AGO THE 52YEAROLD MR NASH DECIDED TOO MUCH CAFFEINE WAS MAKING HIM JITTERY AND UPSETTIG HIS STOMACH NOW HE LIMITS HIMSELF TO TWO OR THREE CUPS OF REGULAR COFFEE A DAY ONE OF WHICH HE MAKES AT HOME FROM BEANS HE GRINDS HIMSELF AND DRINKS MORE HERBAL TEA I TRIED DECAF BUT I DON'T LIKE THE TASTE HE SAYS A SPOKESWOMAN FOR KRAFT GENERAL FOODS BLAMES THE DECLINE OF GROUND DECAFFEINATED COFFEE ON CONSUMER INTEREST IN GOURMET COFFEE OF ALL TYPES AND ON THE INTRODUCTION OF PARTIALLY DECAFFEINATED BLENDS SUCH AS MAXWELL HOUSE LITE PROCTER & GAMBLE DECLINED TO COMMENT ON THE DROP IN SALES OF FOLGERS GROUND DECAF IN THE TIGHT BATTLE BETWEEN THE TWO COFFEE LEADERS FOLGERS MAINTAINED AN ADVANTAGE OF THREE PERCENTAGE POINTS WITH 25 OF THE TOTAL MARKET IN THE QUARTER WHILE MAXWELL HOUSE HAD 22 US COFFEE CONSUMPTION PEAKED IN 1962 AFTER A PERIOD OF STEADY DECLINE IT HAS BEEN RELATIVELY FLAT FOR THE PAST FEW YEARS ACCORDING TO THE NATIONAL COFFEE ASSOCIATION ROUGHLY HALF OF ALL AMERICANS OVER THE AGE OF 10 ARE REGULAR COFFEE DRINKERS CONSUMING AN AVERAGE OF 341 CUPS A DAY BUT MOST CONSUMERS THESE DAYS DON'T INCREASE THEIR COFFEE CONSUMPTION AS THEY AGE THE TYPICAL PATTERN FOR PAST GENERATIONS AND YOUNGER CONSUMERS ARE MORE LIKELY THAN EVER TO FAVOR SWEET FIZZY BEVERAGES THERE ARE SOME BRIGHT SPOTS HOWEVER SALES OF COFFEE BAGS LED BY FOLGERS COFFEE SINGLES GREW NEARLY 70 TO 156 MILLION IN THE LATEST QUARTER ACCORDING TO INFORMATION RESOURCES INTRODUCED IN 1991 FOLGERS COFFEE SINGLES COMBINE GROUND COFFEE AND INSTANT COFFEE IN A POUCH AKIN TO A TEA BAG SALES OF WHOLE COFFEE BEANS ARE ALSO STEAMING ALONG ACCORDING TO MR TOLTZ OF BROTHERS GOURMET PRODUCTS MR TOLTZ SAYS HIS SALES OF BULK BEANS TO SUPERMARKET CHAINS ARE RISING ABOUT 25 A YEAR AMONG HIS HOTTEST SELLERS HAZELNUT AND FRENCH VANILLA FLAVORED COFFEES PEOPLE AREN'T ABANDONING COFFEE THEY'RE JUST ABANDONING THE WAY COFFEE USED TO BE SAYS BEVERAGE CONSULTANT TOM PIRKO OF BEVMARK INC THEY WANT GOOD COFFEE INDEED FEAR OF CAFFEINE ISN'T KEEPING CUSTOMERS AWAY FROM SEATTLEBASED STARBUCKS COFFEE CO'S 180 COFFEE BARS WHERE SOME 800000 CUSTOMERS A WEEK SIP CAPPUCCINO OR DRINK POTENT BLENDS OF CENTRAL AMERICAN INDONESIAN AND DARK ITALIAN ROAST BEANS IN THE YEAR ENDED SEPT 30 SALES AT STORES OPEN AT LEAST 12 MONTHS GREW 20 FROM A YEAR EARLIER ACCORDING TO HOWARD SCHULTZ STARBUCKS'S CHAIRMAN SALES OF TRADITIONAL DECAFFEINATED COFFEES ARE DECLINING BECAUSE THEY DON'T TASTE GOOD HE SAYS WE ARE CONVERTING PEOPLE FROM THE SUPERMARKET AISLES GROCERY SHOPPERS SPENT LESS LAST QUARTER ON SUCH PRODUCTS AS DECAFFEINATED GROUND COFFEES INSTANT COFFEES AND FROZEN VEGETABLES 9302250095 930225 WHO'S NEWS SCOTT NAMED CHIEF SUCCEEDING MAYHEW AT CAROLINA FREIGHT CHERRYVILLE NC CAROLINA FREIGHT CORP SAID LARY R SCOTT WILL BECOME CHIEF EXECUTIVE OFFICER OF THE TRUCKING COMPANY MAY 5 MR SCOTT 56 YEARS OLD SUCCEEDS KENNETH E MAYHEW JR 67 WHO RETIRED IN JANUARY AFTER ACKNOWLEDGING THAT CAROLINA FREIGHT'S EARNINGS IN RECENT YEARS HAD NOT BEEN SATISFACTORY AT THE TIME HOWEVER MR MAYHEW SAID HE WASN'T FORCED TO TAKE EARLY RETIREMENT IN 1992 THE COMPANY HAD AN OPERATING LOSS OF 62 MILLION ACCOUNTING ADJUSTMENTS RESULTED IN NET INCOME FOR THE YEAR OF 36 MILLION OR 54 CENTS A SHARE ON REVENUE OF 8011 MILLION MR SCOTT'S APPOINTMENT CAME AS A SURPRISE TO SOME OBSERVERS WHO NOTED THAT HE HAD RESIGNED IN 1990 AS PRESIDENT AND CHIEF EXECUTIVE OF CONSOLIDATED FREIGHTWAYS INC A TRANSPORTATION CONCERN BASED IN PALO ALTO CALIF CONSOLIDATED ITSELF SAW EARNINGS FALL AFTER THE COMPANY'S 230 MILLION ACQUISITION IN 1989 OF EMERY AIR FREIGHT CORP STILL ANALYSTS SAID MR SCOTT COULD HELP CAROLINA FREIGHT HERE'S A GUY THAT WHEN HE WAS A RUNNING A TRUCKING COMPANY WHEN IT WAS A PURE TRUCKING COMPANY IT WAS A SUCCESS SAID ANTHONY B HATCH AT PAINEWEBBER INC HE'S NOT THERE TO GUIDE CAROLINA FREIGHT INTO NONTRUCK ASSETS HE'S GOING BACK TO HIS ROOTS SO HE MIGHT VERY WELL BE THE RIGHT CHOICE 9302250094 930204 COUNTERPOINT WHAT MARY POPPINS KNEW BY WILLIAM R MATTOX JR IN THE WAKE OF THE ZOE BAIRD NANNYGATE FIASCO CALLS FOR LEGISLATION TO EXPAND THE SUPPLY OF QUALITY CHILD CARE HAVE ARISEN FROM OPPOSITE ENDS OF THE POLITICAL SPECTRUM BOTH THE DAY CARE LOBBY ON THE LEFT AND THE WALL STREET JOURNAL'S EDITORIAL WRITERS ON THE RIGHT APPEAR CONVINCED THAT IF THERE WERE ONLY MORE GOVERNMENT SUBSIDIES FOR DAY CARE LEFT OR LESS GOVERNMENT REGULATION OF HOMEBASED CARE RIGHT EMPLOYED PARENTS WOULD HAVE AN EASIER TIME FINDING A MODERNDAY MARY POPPINS TO CARE FOR THEIR CHILDREN MISSING FROM THE ARGUMENTS OF BOTH GROUPS HOWEVER IS A RECOGNITION THAT THE SHORTAGE OF QUALITY CARE IN THIS COUNTRY STEMS MORE FROM A CULTURAL DEVALUATION OF PARENTAL CHILDREARING THAN FROM PUBLIC POLICY DEFICIENCIES OF ONE KIND OR ANOTHER EVEN IN TIMES OF HIGH UNEMPLOYMENT THERE WILL NEVER BE A LARGE SUPPLY OF COMPETENT NATIVEBORN CITIZENS EAGER TO CARE FOR OTHER PEOPLE'S CHILDREN SO LONG AS THE PREVAILING CULTURAL MESSAGE IN OUR SOCIETY IS THAT JOB RESPONSIBILITIES IN THE MARKETPLACE ARE MORE IMPORTANT THAN CHILDREARING RESPONSIBILITIES IN THE HOME IF LARGE NUMBERS OF MIDDLE AND UPPERCLASS MARRIED COUPLES CAPABLE OF MEETING BOTH THEIR ECONOMIC AND CHILDREARING RESPONSIBILITIES CONTINUE TO SUBORDINATE PARENTING TO PAID WORK NO ONE SHOULD BE SURPRISED IF SUBSTITUTE PARENTING REMAINS A LOWSTATUS OCCUPATION LARGELY UNAPPEALING TO AMERICA'S BRIGHTEST AND BEST AND NO ONE SHOULD BE SURPRISED IF MANY CHILDREN SUFFER AS A RESULT A NUMBER OF RESEARCH STUDIES HAVE LINKED FULLTIME GROUP DAY CARE TO A HOST OF DEVELOPMENTAL AND MEDICAL PROBLEMS IN ADDITION NEW RESEARCH SHOWS THAT GROUP DAY CARE OFTEN STUNTS CHILDREN'S LANGUAGE DEVELOPMENT BECAUSE THE BULK OF THEIR DAILY INTERACTION IS WITH OTHER KIDS RATHER THAN ADULTS WHILE NANNY CARE GENERALLY POSES FEWER PROBLEMS THAN CENTERBASED CARE A UNIVERSITY OF CHICAGO STUDY DOES SHOW HIGHERTHANAVERAGE RATES OF INSECURE ATTACHMENT AMONG INFANTS IN NANNY CARE AND IT IS HARD TO IMAGINE THAT THE COGNITIVE DEVELOPMENT OF AMERICAN YOUNGSTERS PRIMARILY CARED FOR BY IMMIGRANTS WITH POOR ENGLISHLANGUAGE SKILLS WOULD RIVAL THAT OF PEERS CARED FOR BY FAMILY MEMBERS IRONICALLY THAT MOST REMARKABLE OF ALL NANNIES MARY POPPINS UNDERSTOOD THE LIMITATIONS OF SUBSTITUTE PARENTING VERY WELL AS VIEWERS OF THE WALT DISNEY FILM CLASSIC WILL RECALL MARY KNEW THAT IT WOULD BE BETTER FOR THE BANKS CHILDREN TO HAVE PARENTS ACTIVELY INVOLVED IN RAISING CHILDREN THAN TO HAVE A TOPQUALITY SUBSTITUTE CHILD CARE PROVIDER EVEN ONE WHO COULD DELIGHT CHILDREN BY SLIDING UP BANISTERS OR FLYING OVER CITIES WITH AN UMBRELLA UNLIKE TODAY'S CHILDREN'S DEFENSE LOBBY MARY DIDN'T SEE HER MISSION AS PERMANENTLY REPLACING MR AND MRS BANKS AS JANE AND MICHAEL'S CHILD CARE PROVIDER ON THE CONTRARY SHE SET OUT TO SHOW MR BANKS A SELFABSORBED WORKAHOLIC THAT THE CARE AND REARING OF ONE'S OWN CHILDREN OFFERED PLEASURES AND CHALLENGES VERY DIFFERENT FROM THOSE IN THE ADULT MARKETPLACE MARY KNEW THAT WINNING OVER MR BANKS WOULD ALSO AFFECT MRS BANKS A WOMEN'S RIGHTS AGITATOR SINCE THE TIME WOMEN INVEST IN CHILDREARING AND THE SATISFACTION THEY DERIVE FROM IT IS STRONGLY LINKED TO THE LEVEL OF SUPPORT THEY RECEIVE FROM THEIR HUSBANDS ONCE THE WIND CHANGED AND MR AND MRS BANKS DISCOVERED THE JOYS OF FLYING KITES AND ACTIVE PARENTING MARY POPPINS DEPARTED HER MISSION ACCOMPLISHED LIKE MARY POPPINS MANY FEMINISTS ARE TRYING TO GET CHILDREARING OUT OF THE WOMEN'S ISSUE GHETTO BY FOCUSING THEIR CONSCIOUSNESSRAISING EFFORTS ON MEN BUT WHILE MARY SOUGHT TO REKINDLE MR BANKS'S DEMONSTRABLE LOVE FOR HIS FAMILY THESE FEMINISTS APPEAR MORE INTERESTED IN ENLISTING MEN IN EFFORTS TO DUMP CHILDREARING ON PAID SUBSTITUTES INDEED WORKING MOTHER MAGAZINE REGULARLY PASSES OUT GOLD STARS TO MALE CEOS WHO LAUNCH NEW DAY CARE PROGRAMS INCLUDING GHASTLY INNOVATIONS LIKE WORKSITE DAY CARE FOR ILL CHILDREN AND WHEREAS MARY POPPINS NEVER SUGGESTED THAT MR AND MRS BANKS SHOULD CONSIDER THEMSELVES INTERCHANGEABLE COPARENTS MANY FEMINISTS TODAY ROMANTICIZE THE ANDROGYNOUS NEW MAN WHO SEES NO DISTINCTLY MALE ROLE IN FAMILY LIFE NOT SURPRISINGLY MODERN FEMINISTS ARE HAVING FAR LESS SUCCESS IN ENCOURAGING MALE RESPONSIBILITY THAN MARY POPPINS HAD WITH MR BANKS NOT ONLY ARE MORE FATHERS TODAY ABANDONING THEIR FAMILIES THAN EVER BEFORE IN AMERICAN HISTORY BUT THOSE MAKING THE GREATEST CONTRIBUTION AT HOME HARDLY FIT THE NEW MAN IDEAL FOR EXAMPLE A UNIVERSITY OF VIRGINIA STUDY FOUND THAT SOLEBREADWINNER OZZIES SPEND MORE TIME WITH CHILDREN THAN DO FATHERS WITH EMPLOYED WIVES AND A UNIVERSITY OF KENTUCKY STUDY FOUND THAT RELIGIOUSLY CONSERVATIVE MEN WHO ARE OFTEN DEPICTED AS NEANDERTHALS ACTUALLY DO MORE HOUSEHOLD CHORES THAN OTHER MEN IF REALWORLD PUBLIC POLICY CHANGES WERE LIKELY TO LEAD TO THE HAPPY ENDING OF MARY POPPINS'S FICTIONAL STORY THERE WOULD BE GOOD REASON TO MAKE NEW CHILD CARE LEGISLATION A MAJOR PRIORITY IN THE 103RD CONGRESS BUT NEW DAY CARE SPENDING IS APT TO EXACERBATE THE PARENTING DEFICIT IN MANY CHILDREN'S LIVES ADOPTION OF THE FAMILY LEAVE BILL COULD HAVE A SIMILAR EFFECT IF IT ENCOURAGES SUBORDINATION OF PARENTING TO PAID WORK AFTER 12 WEEKS AND REGULATORY CHANGES WHILE NEEDED ARE ONLY AS GOOD AS PARENTS' WILLINGNESS TO SEIZE OPPORTUNITIES TO SPEND MORE TIME WITH CHILDREN THUS OUR BEST HOPE FOR IMPROVING THE CARE OF CHILDREN IN THIS COUNTRY IS TO RAISE THE CULTURAL ESTEEM AFFORDED PARENTAL CHILDREARING AND THE KEY TO STIMULATING SUCH CHANGE LIES IN TURNING THE HEARTS OF FATHERS TO THEIR CHILDREN AS THE HEBREW PROPHET MALACHI ONCE PUT IT LEST THERE BE ANY DOUBT AMERICA NEEDS MEN WHO PREFER DOWNONTHEFIELD FATHERING TO UPINTHESTANDS SPECTATING JUST AS JOHN MADDEN'S FAVORITE PLAYERS REVEL IN THE DOWNANDDIRTY WORLD OF PRO FOOTBALL WE NEED A NATION OF ALLMADDEN FATHERS WHO REVEL IN THE ROUGHANDTUMBLE WORLD OF HANDSON CHILDREARING WE ALSO NEED MEN AND WOMEN WHO RECOGNIZE THAT EVEN THOUGH PATERNAL AND MATERNAL ROLES SOMETIMES OVERLAP FATHERS AND MOTHERS ARE NO MORE INTERCHANGEABLE THAN WIDE RECEIVERS AND DOWN LINEMEN AND WHILE THE RIGORS OF PARENTING DEMAND THE OCCASIONAL USE OF COMPETENT SUBSTITUTES WE NEED FATHERS AND MOTHERS WHO RECOGNIZE THAT NO SOCIETY WORTH ITS SALT WOULD LEAVE THE IMPORTANT JOB OF CHILDREARING TO A BUNCH OF SECONDSTRINGERS EVEN SUBSTITUTES AS SUPERCALIFRAGILISTICEXPEALIDOCIOUS AS MARY POPPINS MR MATTOX DIRECTOR OF RESEARCH FOR THE FAMILY RESEARCH COUNCIL IS MARRIED AND THE FATHER OF THREE SMALL CHILDREN HE DIVIDES HIS WORK WEEK BETWEEN A HOME OFFICE AND FRC HEADQUARTERS IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR MARY SHOULD POP IN TO THE REAL WORLD WSJ FEB 25 1993 9302040100 9302250093 930225 LETTERS TO THE EDITOR MARY SHOULD POP IN TO THE REAL WORLD IT'S HARD TO GET A GRIP ON WILLIAM R MATTOX JR'S LOGIC AS HE DESCRIBES THE SENTIMENTAL LESSONS CONTAINED IN THE DISNEY MOVIE MARY POPPINS WHAT MARY POPPINS KNEW COUNTERPOINT OPED PAGE FEB 4 THE FILM SEEMS TO SUPPORT HIS SOLUTION TO THE ACUTE SHORTAGE OF CHILD CARE MIDDLE AND UPPERCLASS WORKING MOTHERS SHOULD GO BACK HOME AND RAISE THEIR CHILDREN THEMSELVES MR MATTOX'S NOSTALGIA FOR THE TRADITIONAL FAMILY MAY BE UNDERSTANDABLE BUT IT IS NOT BENIGN THIS HARKING BACK TO THE PAST STANDS IN THE WAY OF A CONSTRUCTIVE RESPONSE TO REALITY 23 MILLION MOTHERS WORK AND THEIR NUMBERS ARE GROWING RIGHT NOW 114 MILLION CHILDREN UNDER SIX NEED GOOD DEPENDABLE CARE THE NATION MUST MEET THIS NEED BY TRAINING AND PROPERLY PAYING QUALIFIED CARE GIVERS NOT BY EXHORTING WOMEN TO GET BACK IN THEIR PLACE ALTHOUGH MR MATTOX RIDICULES MALE CEOS WHO LAUNCH NEW DAY CARE PROGRAMS THESE CORPORATE HEADS ARE THE ONES WHO GRASP THE PROBLEM AND OFFER WORKABLE NOT WHIMSICAL SOLUTIONS 9302250092 930225 CORRECTIONS & AMPLIFICATIONS A UNIVERSITY OF PITTSBURGH STUDY PUBLISHED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION FOUND THAT MENTALHEALTH SPECIALISTS WERE WRONG 36 OF THE TIME WHEN THEY PREDICTED A PATIENT WOULDN'T COMMIT VIOLENCE IN THE NEXT SIX MONTHS THAT PERCENTAGE WAS MISSTATED AS 64 IN YESTERDAY'S LEGAL BEAT COLUMN DAVID PONEMAN AN ANALYST AT SANFORD C BERNSTEIN SAID ANALYSTS' EARNINGS EXPECTATIONS FOR WALMART STORES INC WERE EXTREMELY HIGH RATHER THAN ABSURDLY HIGH AS REPORTED IN AN ARTICLE YESTERDAY ABOUT THE COMPANY'S FOURTHQUARTER PROFIT MR PONEMAN SAID HE THINKS WALMART HAS A BETTER CHANCE OF MEETING EXPECTATIONS THAN MOST ANY OTHER RETAILER THE PHILADELPHIA STOCK EXCHANGE ON MONDAY REPORTED AND THEN CANCELED THE SALE OF A LARGE BLOCK OF SHARES OF HOME DEPOT INC AFTER A KEYPUNCH ERROR WAS FOUND AN ARTICLE TUESDAY ON HOME DEPOT'S EARNINGS STATED INCORRECTLY THAT THE REPORT OF THE SALE HAD BEEN MADE BY THE NEW YORK STOCK EXCHANGE 9302250091 930225 DIVIDEND NEWS GEICO CORP GEICO CORP WASHINGTON THIS PROVIDER OF HOMEOWNER AND AUTO INSURANCE INCREASED ITS QUARTERLY DIVIDEND 13 TO 17 CENTS A SHARE FROM 15 CENTS PAYABLE MARCH 31 TO SHARES OF RECORD MARCH 8 GEICO HAS ABOUT 712 MILLION SHARES OUTSTANDING 9302250090 930225 FINANCING BUSINESS SUMMIT HEALTH LTD SUMMIT HEALTH LTD BURBANK CALIF SAID IT POSTPONED ITS PROPOSED ISSUANCE OF AS MUCH AS 50 MILLION OF EXCHANGEABLE SUBORDINATED NOTES BECAUSE OF UNFAVORABLE MARKET CONDITIONS THE NOTES WERE TO HAVE BEEN EXCHANGEABLE FOR THE COMPANY'S COMMON SHARES IN ITS SUMMIT CARE CORP SUBSIDIARY BOTH COMPANIES PROVIDE HEALTH CARE SERVICES 9302250089 930225 WHO'S NEWS HOWTEK INC HOWTEK INC HUDSON NH DAVID R BOTHWELL PRESIDENT AND CHIEF EXECUTIVE OFFICER IS RESIGNING EFFECTIVE TOMORROW THE PUBLISHING TECHNOLOGY COMPANY SAID MR BOTHWELL SPENT THE PAST FIVE YEARS REBUILDING THE COMPANY AND WILL RESIGN FOR MEDICAL REASONS AND TO PURSUE OTHER INTERESTS MR BOTHWELL COULDN'T BE REACHED FOR COMMENT ROBERT HOWARD CHAIRMAN SAID MR BOTHWELL LEAVES A STRONG MANAGEMENT TEAM IN PLACE AND ADDED THAT HE DOES NOT ANTICIPATE THAT THE RESIGNATION WILL HURT HOWTEK'S BUSINESS LAST YEAR HOWTEK POSTED PROFIT OF 38 MILLION OR 49 CENTS A SHARE ON REVENUE OF 23 MILLION COMPARED WITH A LOSS OF 5 MILLION OR 67 CENTS A SHARE ON REVENUE OF 119 MILLION A YEAR EARLIER 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 9302250088 930225 LETTERS TO THE EDITOR THE LATEST IN FASHION CAN FOSTER GOODWILL IT WAS WITH SOME INTEREST THAT I READ YOUR SPLENDID FEB 9 ARTICLE ON THE FASHIONS FOR MEN BY DONNA KARAN FEATURING TWO NEW STYLES BAGGIE BREECHES OF HAIGHTASHBURY HIPPIE AND THE GENERIC SKID ROW BUM LOOK I AM NOT AWARE THAT ANY OF OUR LOCAL STORES SUCH AS BROOKS BROTHERS OR SAKS FIFTH AVENUE CARRY THE LINE BUT THE LOOK CAN BE ACHIEVED IN BOTH COMPLETE OUTFIT FORM OR BY THE PIECE FROM SEVERAL LOCAL CONCERNS AS THESE CONCERNS MAINTAIN OUTLETS IN MOST CITIES I'D LIKE TO ALERT YOUR READERS TO THEM BY THE BY INSTEAD OF 1500 THESE OUTLETS CHARGE MORE LIKE 15 THEY ARE GOODWILL INDUSTRIES THE SALVATION ARMY AND THE ST VINCENT DE PAUL SOCIETY FOR EVEN LOWER PRICES A NUMBER OF LOCAL CHURCHES OFFER SIMILAR MERCHANDISE THROUGH PERIODIC RUMMAGE SALES SOME ALSO MAINTAIN STORES OF SIMILAR MERCHANDISE THAT CAN BE SECURED ON AN IRREGULAR BASIS SIMPLY FOR THE ASKING 9302250087 930225 FINANCING BUSINESS ILLINOIS POWER CO ILLINOIS POWER CO DECATUR ILL SAID IT WILL REDEEM TWO ISSUES OF BONDS TOTALING 225 MILLION MARCH 22 TO TAKE ADVANTAGE OF LOWER INTEREST RATES AND ISSUE 235 MILLION IN NEW BONDS THE UTILITY SAID IT WILL REDEEM ALL FIRST MORTGAGE BONDS OUTSTANDING 8 7/8 SERIES DUE 2008 AT 10444 AND ALL FIRST MORTGAGE BONDS OUTSTANDING 9 3/8 SERIES DUE 2016 AT 10463 THE COMPANY ALSO SAID IT WILL ISSUE 235 MILLION IN GENERAL MORTGAGE BONDS 8 SERIES DUE 2023 AND USE PROCEEDS TO REDEEM THE TWO FIRST MORTGAGE ISSUES 9302250086 930225 FINANCING BUSINESS STANDARD PACIFIC CORP STANDARD PACIFIC CORP COSTA MESA CALIF SAID IT PLANS TO OFFER 100 MILLION OF SENIOR NOTES UNDER A SHELF REGISTRATION STATEMENT PREVIOUSLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE HOME BUILDER SAID PROCEEDS FROM THE NOTES DUE 2000 WILL BE USED TO REDEEM ALL OF ITS 13 7/8 SUBORDINATED SINKING FUND DEBENTURES AND ALL OR PART OF ITS 12 3/4 DEBENTURES AS WELL AS TO REDUCE BANK DEBT THE OFFERING WILL REDUCE INTEREST EXPENSE AND ALLOW THE COMPANY TO BETTER MATCH ITS ASSETS AND LIABILITIES A SPOKESWOMAN SAID LEHMAN BROTHERS IS THE SOLE UNDERWRITER 9302250085 930211 TALE OF THE TAPE HOW GM ONEUPPED AN EMBARRASSED NBC ON STAGED NEWS EVENT HEADS MAY ROLL AT NETWORK OVER EXPLODING' TRUCK WHO KNEW WHAT WHEN GUMSHOES IN THE JUNKYARDS BY WALL STREET JOURNAL STAFF REPORTERS ELIZABETH JENSEN IN NEW YORK DOUGLAS LAVIN IN DETROIT AND NEAL TEMPLIN IN INDIANAPOLIS WHEN GENERAL MOTORS CORP EXECUTIVES HELD A PRESS CONFERENCE IN DETROIT ON MONDAY TO UNVEIL THEIR DEFAMATION CASE AGAINST NBC NEWS A LIVE FEED WAS PIPED IN TO A SMALL AND ESPECIALLY INTERESTED AUDIENCE ON THE 52ND FLOOR OF 30 ROCKEFELLER PLAZA IN NEW YORK THERE IN THE EXECUTIVE SUITES AT NBC HEADQUARTERS A HANDFUL OF TOP EXECUTIVES MILLED AROUND SEVERAL TV SCREENS AND WATCHED GM'S TOP ATTORNEY SYSTEMATICALLY TEAR APART AN NBC PRIMETIME REPORT ON EXPLODING GAS TANKS IN GM TRUCKS ALTHOUGH GM HAD FIRST COMPLAINED ABOUT THE REPORT ALMOST THREE MONTHS EARLIER AND ALTHOUGH HIGHLEVEL NBC NEWS OFFICIALS HAD BEEN INVESTIGATING THE REPORT THEMSELVES SINCE LATE JANUARY A SENSE OF DISBELIEF NOW FILLED THE ROOM ATOP NBC HEADQUARTERS ON THE SCREEN GM GENERAL COUNSEL HAROLD J PEARCE REVEALED FACT AFTER FACT THAT THE NEWS EXECUTIVES HADN'T KNOWN ABOUT THE METHODS USED BY THEIR OWN PRODUCERS ON THE STORY NOW NBC'S FAILURE TO FULLY INVESTIGATE GM'S COMPLAINTS ABOUT THE REPORT HAS RESULTED IN THE MOST HUMILIATING EPISODE OF CROWEATING IN THE NEARLY FOURDECADE HISTORY OF NBC NEWS IN THE FINAL MOMENTS TUESDAY NIGHT OF DATELINE NBC THE SAME SHOW THAT HAD BROADCAST THE EXPLODINGTRUCKS REPORT IN NOVEMBER ANCHORS JANE PAULEY AND STONE PHILLIPS ISSUED A LONG AND SOMBER APOLOGY TO THEIR VIEWERS AND TO GM THE TWO ANCHORS SAID NBC DOES NOT DISPUTE THAT IT USED TOY ROCKET ENGINES AS IGNITERS IN ITS STAGED CRASHES OF GM TRUCKS THAT ITS REPORT SIGNIFICANTLY UNDERSTATED VEHICLE SPEED AT THE MOMENT OF IMPACT OR THAT ITS REPORT WRONGLY STATED THAT A FUEL TANK RUPTURED IN ONE OF THE CRASHES NBC A UNIT OF GENERAL ELECTRIC CO ALSO AGREED TO REIMBURSE GM THE ROUGHLY 2 MILLION IT HAD INCURRED INVESTIGATING THE DATELINE REPORT IN EXCHANGE GM AGREED TO DROP THE DEFAMATION SUIT IT HAD FILED AGAINST NBC ON MONDAY GM HAS TEMPORARILY SHIFTED ADVERTISING ORIGINALLY SLATED FOR NBC NEWS PROGRAMS TO NBC ENTERTAINMENT AND SPORTS PROGRAMMING FOR GM THE VICTORY OVER NBC ACCOMPLISHED WITH THE HELP OF A CALIFORNIA CARBUFF WRITER AN INDIANAPOLIS FIREFIGHTER AND DETECTIVES WHO HAD SEARCHED 22 JUNKYARDS REPRESENTS AN EXTRAORDINARY PUBLICRELATIONS TRIUMPH ONLY A WEEK AGO AN ATLANTA JURY AWARDED 1052 MILLION TO THE FAMILY OF A YOUNG MAN WHO DIED IN THE FIERY CRASH OF A GM PICKUP WITH SIDESADDLE GASOLINE TANKS AND THE SAFETY OF THOSE PICKUPS REMAINS THE FOCUS OF AN INVESTIGATION BY FEDERAL HIGHWAY SAFETY AUTHORITIES BUT NOW THE PUBLICITY SURROUNDING THAT VERDICT WHICH GM IS APPEALING AND THE ENTIRE PICKUP CONTROVERSY IS OVERSHADOWED BY NBC'S ADMISSION THAT IT WRONGED GM IT'S ALSO A TURNAROUND IN ANOTHER WAY FOR GM WHICH HAS NEVER QUITE OVERCOME ITS OWN HUMILIATION IN 1966 WHEN IT ISSUED A PUBLIC APOLOGY AND A PAYMENT OF MORE THAN 400000 TO RALPH NADER FOR INVESTIGATING THE CONSUMER ACTIVIST AFTER HE ATTACKED THE CHEVROLET CORVAIR THAT LEFT GM WITH ITS OWN VERSION OF THE VIETNAM SYNDROME SEEMINGLY HANDICAPPED DESPITE ITS ENORMOUS POWER BUT NOW GM HAS STAGED A BRILLIANTLY EXECUTED REJECTION OF A HIGHLY PUBLIC ATTACK ON ITS CORPORATE REPUTATION I CAN'T HELP BUT THINK THAT PSYCHOLOGICALLY THIS WILL BE A TURNING POINT FOR THEM SAYS A SENIOR PUBLICRELATIONS OFFICIAL AT ANOTHER DETROIT CAR COMPANY BOTH IN THE WAY THEY PERCEIVE THEMSELVES AND IN HOW THEY'RE PERCEIVED BY OTHERS FALLOUT OF AN ALTOGETHER DIFFERENT SORT IS EXPECTED AT NBC SOME HEADS ARE LIKELY TO ROLL ACCORDING TO COMPANY INSIDERS AMONG OTHER THINGS EVEN AS THE GM INVESTIGATION EVOLVED INTO A CRISIS FOR NBC IN MIDJANUARY A DATELINE PRODUCER FAILED TO INFORM NBC NEWS PRESIDENT MICHAEL GARTNER WHO DIDN'T LEARN OF THE PROBLEM UNTIL THE VERY END OF JANUARY MOREOVER ONE LAWYER IN THE BROADCAST BUSINESS SAYS NBC ATTORNEYS BELIEVE THAT BEFORE THE NOVEMBER REPORT EVER WAS BROADCAST THEY WERE INADEQUATELY INFORMED AS NEWS PRODUCERS CLOSED RANKS THE CRISIS COULDN'T COME AT A WORSE TIME FOR NBC NEWS WHICH HAS FINALLY SEEN SOME TURNAROUND IN ITS FORTUNES ALTHOUGH NBC NIGHTLY NEWS TRAILS IN THIRD PLACE IN NEWS RATINGS THE MORNING TODAY SHOW NOW IS A COMPETITIVE NO 2 AND HAS MOVED FAR BEYOND THE CONTROVERSIAL OUSTER OF MS PAULEY AS AN ANCHOR THREE YEARS AGO DATELINE HAS MARKED NBC'S FIRST SUCCESSFUL NEWSMAGAZINE SHOW AFTER 17 TRIES AND IT HAS HELPED THE ENTIRE NEWS DIVISION WITH AN ANNUAL BUDGET OF PERHAPS 300 MILLION TO BREAK EVEN THE DATELINE SHOW IN NOVEMBER FOCUSED ON GM'S FULLSIZE 1973 TO 1987 PICKUPS WHICH SOME CONSUMER ADVOCATES CLAIM ARE UNUSUALLY PRONE TO EXPLODE WHEN BROADSIDED BECAUSE OF GAS TANKS PLACED OUTSIDE THE TRUCK'S FRAME IN A 15MINUTE SEGMENT TITLED WAITING TO EXPLODE NBC INCLUDED A MINUTELONG VIDEOTAPE OF TWO CRASHES OF GM TRUCKS THAT NBC HAD AN OUTSIDE TESTING COMPANY STAGE ON A COUNTRY ROAD IN INDIANA ON OCT 24 GM OFFICIALS LATER EXAMINED THE SHOW IN SLOW MOTION AND GOT SUSPICIOUS ONE PICKUP WAS HIT AT 40 MPH AND DID NOT EXPLODE BUT A SECOND PICKUP WAS HIT AT A SLOWER SPEED AND DID IGNITE GM'S OWN TESTS SHOWED THAT THE PICKUPS SHOULD HAVE SUSTAINED CRASHES AT HIGHER SPEEDS WITHOUT CATCHING FIRE GM REPEATEDLY ASKED NBC TO ALLOW GM TO INSPECT THE PICKUPS BUT ON JAN 4 ROBERT READ A PRODUCER OF DATELINE TOLD GM THE VEHICLES WERE JUNKED AND THEREFORE ARE NO LONGER AVAILABLE FOR INSPECTION MEANWHILE PETE W PESTERRE THE 32YEAROLD EDITOR OF LOS ANGELESBASED POPULAR HOT RODDING MAGAZINE WAS DOING SOME INVESTIGATING OF HIS OWN MR PESTERRE HAS OWNED FOUR GM PICKUPS AND CAME THROUGH A SIDEIMPACT CRASH IN ONE OF THEM UNSCATHED AFTER HE WROTE AN EDITORIAL CRITICIZING THE DATELINE SHOW A READER IN INDIANA CALLED HIM IN EARLY JANUARY AND TOLD HIM OF A FIREFIGHTER WHO WAS ON THE SCENE OF THE STAGED CRASH WITH HIS OWN VIDEOTAPE AND WHO THOUGHT THE TEST HAD BEEN RIGGED MR PESTERRE ALERTED WILLIAM J O'NEILL GM'S SECONDRANKING PUBLICRELATIONS EXECUTIVE HE IN TURN PUT MR PESTERRE IN TOUCH WITH WILLIAM KEMP JR A STAFF ATTORNEY FOR GM MR PESTERRE CONTINUED HIS PHONE CALLS AND EVENTUALLY TRACKED DOWN BROWNSBURG IND FIRE CHIEF GLEN R BAILEY JR ON FRIDAY JAN 15 HE TOLD ME HOW THE CRASH TEST WAS EQUIPPED WITH AN INCENDIARY DEVICE MR PESTERRE RECALLS I SAID WOULD YOU MIND SPEAKING WITH SOME FRIENDS OF MINE AT GM' I GAVE HIM BILL KEMP'S NAME MR KEMP IMMEDIATELY GOT IN TOUCH WITH CHIEF BAILEY AND OVER THE WEEKEND FLEW TO INDIANAPOLIS GM'S INDIANAPOLIS LAW FIRM LOCKE REYNOLDS BOYD & WEISELL HIRED TWO INVESTIGATORS ONE A RETIRED POLICE OFFICER TO SEARCH FOR THE TRUCKS THAT WERE CRASHED THE INVESTIGATORS HAD A LIST OF 22 JUNKYARDS TO CHECK ON THEIR VISIT TO THE LAST OF THE 22 THE YORK SALVAGE YARD IN DANVILLE IND THEY FOUND THE TRUCKS WE WERE ELATED SAYS LLOYD H MILLIKEN JR A LOCKE REYNOLDS ATTORNEY MR MILLIKEN WROTE A PERSONAL CHECK TO BUY THE TRUCKS AS WELL AS THE TWO CHEVY CITATIONS THAT HAD BEEN CRASHED INTO THEM FOR 400 AFTER THE VEHICLES WERE SHIPPED TO GM'S INDIANAPOLIS METAL STAMPING PLANT A SPENT MODEL ROCKET ENGINE WAS FOUND IN THE BED OF ONE OF THE PICKUPS NOW GM OFFICIALS WANTED TO EXAMINE THE TRUCKS' FUEL TANKS BUT THEY WERE MISSING ON JAN 20 GM WENT TO COURT AND GOT A TEMPORARY RESTRAINING ORDER BARRING BRUCE ENZ PRESIDENT OF THE CONSULTING FIRM NBC HAD HIRED TO CONDUCT THE STAGED CRASHES FROM DISPOSING OF THE FUEL TANKS SEVERAL DAYS LATER GM GOT WORD FROM MR ENZ THROUGH HIS ATTORNEY THAT HE HAD GIVEN THE FUEL TANKS TO A NEIGHBOR AND THAT THEY WERE SITTING IN A JUNK HEAP ON THE NEIGHBOR'S PROPERTY WHERE GM GOT ACCESS TO THEM LATER GM TRIED TO QUESTION MR ENZ BUT HE REBUFFED THAT EFFORT CLAIMING THROUGH AN ATTORNEY THAT HE WAS A NEWS GATHERER FOR NBC AND THUS HAD FIRST AMENDMENT PROTECTION FROM INTERROGATION WHILE HE CONDUCTED THE CRASH TEST FOR NBC ALSO AT THE SITE WAS AN NBC NEWS CREW THAT INCLUDED DATELINE REPORTER MICHELE GILLEN THE VIDEOTAPE SHOT FROM THE FIRETRUCK SHOWED THAT WHAT NBC MADE TO LOOK LIKE A BLAZING FIRE WAS NOTHING MORE THAN A 15SECOND FLAME FIREFIGHTERS' VOICES INCLUDING THAT OF CHIEF BAILEY COULD BE HEARD ON THE TAPE LAUGHING AT HOW SMALL THE BLAZE WAS SO MUCH FOR THAT THEORY SAID ONE FIREMAN THERE WAS A SECOND INDEPENDENT VIDEOTAPE AS WELL THIS ONE SHOT AT THE SCENE BY AN OFFDUTY SHERIFF'S DEPUTY GM'S MR KEMP COORDINATING THE PROBE CALLED IN TECHNICAL EXPERTS FROM GM'S HUGHES AIRCRAFT CO SUBSIDIARY THEY USED SOPHISTICATED DIGITALENHANCEMENT TECHNIQUES TO ANALYZE ALL THE TAPES INCLUDING NBC'S FRAMEBYFRAME GM INVESTIGATORS ALSO INTERVIEWED THE PREVIOUS OWNERS OF THE TWO TRUCKS ONE OWNER TOLD GM HE HAD LOST HIS GAS CAP AND HAD RESORTED TO BENDING A NONSTANDARD GAS CAP TO FIT THE TRUCK THAT GAS CAP GM SAYS BLEW OFF THE TRUCK ON IMPACT RELEASING GASOLINE THAT CAUGHT FIRE DURING NBC'S TEST ON MONDAY FEB 1 MR PEARCE GM'S EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL FLEW TO ARIZONA AND PRESENTED HIS CASE TO GM'S BOARD OF DIRECTORS THEY WERE SHOCKED HE SAYS LAST WEEKEND THE GM TEAM WORKED FEVERISHLY TO ADD LAYERS OF PROOF TO ITS ALREADYSTRONG CASE MS GILLEN THE DATELINE REPORTER HAD STATED DURING THE BROADCAST THAT THE TEST HAD PUNCTURED A HOLE IN ONE TRUCK'S GAS TANK ON SATURDAY THOUGH GM SENT THE TANK TO AN XRAY LABORATORY AND HAD A METALLURGIST CERTIFY THAT THE TANK WAS UNPUNCTURED AND SOUND MR PEARCE THEN MADE GM'S CASE IN MONDAY'S TWOHOUR NEWS CONFERENCE WHICH WAS TELECAST TO GM OFFICES FACTORIES AND DEALERS THROUGHOUT THE COUNTRY WHEN YOU ARE FIGHTING A CASE YOU HAVE THE FORUM OF COURT HE SAYS BUT TAKEN ON BY THE MEDIA I DON'T KNOW OF ANY OTHER FORUM AVAILABLE THAN THE PUBLIC WITH THE RELENTLESSNESS OF THE SEASONED TRIAL ATTORNEY THAT HE IS MR PEARCE METICULOUSLY BUILT HIS ARGUMENTS USING A POINTER HE TICKED OFF EXHIBIT AFTER EXHIBIT PHOTOGRAPHS THEN VIDEOTAPES AND THEN THE PHYSICAL REMAINS OF ONE OF THE ROCKETS THAT NBC HAD TAPED TO THE TRUCKS MR PEARCE DECLARED WE SURE DON'T BUILD THEM THAT WAY MEANING TRUCKS WITH ROCKETS ATTACHED AT THE END OF THE PRESS CONFERENCE GM FLASHED THE PHONE NUMBER OF NBC NEWS ACROSS THE SCREEN IN NEW YORK MR PEARCE'S PRESENTATION STUNNED THE NBC EXECUTIVES WATCHING ON TV HOW HAD THEY SO UNDERESTIMATED THE ATTACK AS NBC NEWS MANAGEMENT REALIZED THAT GM WAS INTENT ON PURSUING THE CASE NBC LAWYERS AND OFFICIALS HUDDLED OVER THE WEEKEND THE MEETINGS CULMINATED IN A LONG SESSION SUNDAY THAT FINALLY BROKE UP AT 230 AM MONDAY MORNING THERE NBC'S TOP PUBLICRELATIONS EXECUTIVE BETTY HUDSON TWO OTHER PUBLICRELATIONS ADVISERS AND NBC GENERAL COUNSEL RICHARD COTTON PLOTTED THEIR PRESS STRATEGY AND REWORKED A DRAFT OF A LETTER THAT MR GARTNER WOULD WRITE TO GM PARTICIPATING IN THE SUNDAY SESSION BY TELEPHONE WERE MR GARTNER AND STUART SUCHERMAN OF THE STRATEGICPLANNING FIRM OF JACK HILTON INC A FREQUENT CONSULTANT TO MR WELCH THE LETTER MR GARTNER SENT TO GM WAS HARDLY APOLOGETIC IT ASSERTED THREE SEPARATE TIMES THAT THE NBC STORY WAS ENTIRELY ACCURATE NBC DOES NOT BELIEVE THAT ANY STATEMENTS MADE WERE EITHER FALSE OR MISLEADING THE LETTER SAID THE DATELINE' REPORT WAS AND REMAINS COMPLETELY FACTUAL AND ACCURATE NBC CLUNG TO THIS CONCLUSION FOR TWO REASONS IT WOULD LATER ABANDON THE NETWORK HAD BEEN TOLD BY ITS OUTSIDE TESTING FIRM THAT USING THE TINY ROCKET ENGINES AS IGNITERS WAS ENTIRELY ACCEPTABLE PROCEDURE AND THAT A CAREFUL EXAMINATION OF THE VIDEOTAPE SHOWED THE IGNITERS WEREN'T RESPONSIBLE FOR STARTING THE FIRE ANYWAY LOOKING AT IT PIECE BY PIECE NBC EXECUTIVES CONVINCED THEMSELVES EVERYTHING HAD BEEN DONE PROPERLY BUT THAT POSITION CHANGED DRAMATICALLY AS NBC OFFICIALS WATCHED THE GM PRESS CONFERENCE UNFOLD ON MONDAY AFTERWARD THEY HIRED FIRST AMENDMENT ATTORNEY FLOYD ABRAMS AS WELL AS ROBERT SACK OF THE LAW FIRM OF GIBSON DUNN & CRUTCHER TO CONDUCT AN INTERNAL REVIEW OF WHAT WENT WRONG MR SACK REGULARLY COUNSELS THE WALL STREET JOURNAL THEY WENT OVER THEIR OPTIONS INCLUDING ONE IDEA TO RERUN THE ENTIRE CRASH PIECE ON TUESDAY WITH AN EXPLANATION OF THE TOY ROCKETS BY TUESDAY MORNING HOWEVER FACED WITH GM'S SUIT MOUNTING CRITICISM FROM THE JOURNALISTIC ESTABLISHMENT AND NERVOUS NBC AFFILIATE STATIONS WORRIED THAT GM DEALERSHIPS IN THEIR COMMUNITIES WOULD PULL ADVERTISING NBC NEWS'S MR GARTNER SUGGESTED SEEKING A SETTLEMENT THE TALKS BEGAN WITH NBC CALLING GM ON TUESDAY MORNING WITH A BATTERY OF NBC OFFICIALS TAKING PART IN EXTENDED CONFERENCE CALLS WITH THEIR GM ANTAGONISTS THE NBC TEAM INCLUDED MR GARTNER NBC PRESIDENT WRIGHT GENERAL COUNSEL COTTON AND THREE OTHER NBC LAWYERS AS WELL AS OUTSIDE ATTORNEYS ABRAMS AND SACK THE AGREEMENT BETWEEN NBC AND GM WASN'T HAMMERED OUT UNTIL 1030 PM EVEN AS DATELINE WAS ON THE AIR CONTACTED YESTERDAY AT AN ANNUAL MANAGEMENT CONFERENCE OF NBC EXECUTIVES IN CROTONVILLE NY MR GARTNER EXPLAINED HIS UNAPOLOGETIC LETTER TO GM ON MONDAY BY SAYING I DIDN'T KNOW AS MUCH WHEN I DID THAT THE THING BUILT OVER A PERIOD OF DAYS I CONTINUED TO LEARN MORE AND EVERYTHING TROUBLED ME MORE AND THEN FINALLY AT THE PRESS CONFERENCE I LEARNED STILL MORE AS FOR THE PUBLIC APOLOGY HE SAYS IF YOU MAKE A MISTAKE YOU'VE GOT TO STAND UP TO IT HE ADDED THAT HE IS STILL PROUD OF THE 15MINUTE PIECE ON THE GM TRUCKS EXCEPT FOR THE CRASH DEMONSTRATION WHICH HAS LEFT HIM EMBARRASSED AND MAD MR GARTNER INSISTS THERE WAS NO PRESSURE FROM GE TO SETTLE THE SUIT ALTHOUGH HE SAID A HIGHRANKING GE EXECUTIVE TOLD HIM YESTERDAY DURING THE MANAGEMENT RETREAT THAT GE WAS PLEASED THE SUIT WAS SETTLED MR GARTNER SAYS HE WILL MOVE WITH DELIBERATE SPEED ON AN INTERNAL REVIEW OF WHAT WENT WRONG I DON'T EVER WANT TO BE IN THIS KIND OF SITUATION AGAIN HE SAYS ADDING I DON'T YET KNOW WHETHER IT WAS A PROCESS PROBLEM OR A PEOPLE PROBLEM AND WHAT I WILL DO AS A RESULT IS JUST SPECULATION NBC'S ERROR HE SAYS NOW WASN'T JUST IN FAILING TO DISCLOSE THE USE OF ROCKET ENGINES BUT IN COMMISSIONING THE TEST DEMONSTRATION TO BEGIN WITH IT WAS TOTALLY UNNECESSARY IN THE LARGER SCHEME OF THE REPORTING ON THE TRUCKS HE SAYS IT BROUGHT NO NEW FACTS TO THIS SITUATION BUT IT BROUGHT INTO DOUBT THE CREDIBILITY OF OUR OPERATION WE'RE NOT IN THE BUSINESS OF DOING UNSCIENTIFIC TESTS IN RELATION TO NEWS PROGRAMS HE ADDS THE ACTIONS OF THREE OF THE SHOW'S EMPLOYEES MR READ SENIOR PRODUCER DAVID RUMMEL AND EXECUTIVE PRODUCER JEFF DIAMOND ARE UNDER PARTICULARLY INTENSE SCRUTINY ALL THREE HAVE LONG TV NEWSMAGAZINE BACKGROUNDS MR READ AND MR DIAMOND WORKED AT ABC'S 20/20 AND MR READ HAD ALSO WORKED AT THE TABLOID SHOW INSIDE EDITION THIS WAS HIS FIRST PIECE FOR DATELINE MR RUMMEL HAD BEEN WITH CBS'S 60 MINUTES NBC ALSO IS LOOKING INTO REPORTS FROM SHOW STAFFERS CONTRADICTED BY OTHER EMPLOYEES THAT THE ORIGINAL SCRIPT FOR THE CRASH PIECE REFERRED TO THE TOY ROCKETS BUT THAT IT WAS LATER EDITED OUT OUT IN THE INDIANA COUNTRYSIDE WHERE THE CRASH TESTS TOOK PLACE LOCALS ARE SURPRISED AT THE SUDDEN ATTENTION THEIR NEIGHBORHOOD IS RECEIVING EVEN HERE THOUGH THE BIGGEST SHOCK WAS NBC'S UNALLOYED APOLOGY AS ANDREW BURNETT A LOCAL FIRE OFFICIAL WHO WITNESSED THE CRASHES PUT IT WHEN WAS THE LAST TIME YOU SAW A MAJOR NETWORK SAYING THEY HAVE SCREWED UP TO THAT EXTENT SEE RELATED LETTERS LETTERS TO THE EDITOR JOURNALISTS FAUX WSJ FEB 25 1993 9302110034 9302250084 930225 LAW GENERAL CHEMICAL GETS TEXAS COURT TO SLASH AWARD BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS SUPREME COURT KNOCKED AT LEAST 22 MILLION OFF A 446 MILLION WRONGFULDEATH AWARD AGAINST GENERAL CHEMICAL CORP OF PARSIPPANY NJ BUT PASSED UP A CHANCE TO DECIDE WHETHER THE CURRENT SYSTEM OF AWARDING PUNITIVE DAMAGES IN TEXAS A STATE KNOWN FOR ITS MEGAVERDICTS LEADS TO UNCONSTITUTIONALLY LARGE AWARDS THE COURT BASED ITS DECISION TO REDUCE THE AWARD ON NARROWER GROUNDS FINDING THAT UNDER THE STATE'S WRONGFULDEATH STATUTE PARENTS OF A VICTIM AREN'T AMONG THE SURVIVORS ENTITLED TO PUNITIVE DAMAGES AS A RESULT JUSTICE RAUL A GONZALES WROTE IN HIS OPINION WE NEED NOT ADDRESS WHETHER OR NOT THIS AWARD WAS UNCONSTITUTIONALLY EXCESSIVE THE COMPANY HAD CONTENDED THAT THE CURRENT SYSTEM ALLOWS EXCESSIVE PUNITIVE DAMAGE AWARDS AND THAT SUCH AWARDS UNCONSTITUTIONALLY VIOLATE DUE PROCESS UNDER THE FOURTEENTH AMENDMENT THE CASE STEMMED FROM THE DEATH IN JUNE 1988 OF TWO FISHERMEN FROM BROWNSVILLE TEXAS WHO WERE ASPHYXIATED BY FUMES IN THE HOLD OF THEIR SHRIMP BOAT WHILE SPREADING A PRESERVATIVE MADE BY GENERAL CHEMICAL'S PREDECESSOR COMPANY ALLIED CHEMICAL CORP ON THEIR CATCH THE BAGS OF SHRIMP DIP HAD BEEN LABELED WITH A WARNING THAT BECAUSE OF TOXIC FUMES IT SHOULD BE USED ON DECK NOT IN A HOLD BUT TRIAL TESTIMONY INDICATED THAT ALLIED CHEMICAL KNEW OF AT LEAST 10 PREVIOUS INCIDENTS OF DEATH OR INJURY INVOLVING THE CHEMICALS AND A JURY FOUND THE COMPANY GROSSLY NEGLIGENT FOR NOT PROVIDING CLEARER WARNING OF THE RISK OF DEATH FROM USING THE PRODUCT BASED ON THAT FINDING THE JURY AWARDED THE MEN'S PARENTS WHO HAD BROUGHT THE SUIT A TOTAL OF 11 MILLION ON THEIR OWN BEHALF 2 MILLION AS REPRESENTATIVES OF THE MEN'S ESTATES AND 30 MILLION IN PUNITIVE DAMAGES WITH ANOTHER 16 MILLION IN INTEREST THE SUPREME COURT UPHELD THE FINDING OF GROSS NEGLIGENCE WHICH ALLOWS PUNITIVE DAMAGES OF AS MUCH AS FOUR TIMES ACTUAL DAMAGES BUT IT SAID THAT BECAUSE PARENTS ARE BARRED FROM COLLECTING PUNITIVE DAMAGES ON THEIR OWN BEHALF UNDER STATE WRONGFUL DEATH LAWS THE CALCULATION OF PUNITIVE DAMAGES COULD ONLY BE BASED ON THE 2 MILLION ACTUAL DAMAGE AWARD TO THE MEN'S ESTATES THE COURT REMANDED THE CASE TO A LOWER COURT FOR A NEW DETERMINATION OF PUNITIVE DAMAGES 9302250083 930225 COMMODITIES LUMBER FUTURES CONTINUE TO RISE BUT CASH PRICE MAY BE HIGH ENOUGH TO CUT DEMAND FOR WOOD BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LUMBER FUTURES PRICES CONTINUED TO SURGE BUT THERE ARE INDICATIONS THAT THE CASH PRICE OF LUMBER IS NOW SO HIGH THAT DEMAND FOR WOOD IS ERODING DRIVEN BY STRENGTH IN THE CONSTRUCTION INDUSTRY AND SCARCITY OF LUMBER THE PRICE OF LUMBER FOR MARCH DELIVERY HAS SURGED NEARLY 150 TO YESTERDAY'S CLOSING PRICE OF 44520 PER THOUSAND BOARD FEET FROM ABOUT 180 IN NOVEMBER AT THE CHICAGO MERCANTILE EXCHANGE THE PRICE OF THE MARCH CONTRACT ROSE BY THE DAILY PRICEMOVE LIMIT FOR 22 CONSECUTIVE DAYS FINALLY FALTERING ON TUESDAY NOW HOWEVER THE BIGGEST BULL MARKET IN THE HISTORY OF LUMBER FUTURES TRADING APPEARS TO HAVE SLOWED BASICALLY WE'VE EXHAUSTED BUYERS IN THE CASH MARKET SAYS GREGG RILEY SALES MANAGER FOR BLOCH LUMBER CO A LUMBER WHOLESALER ACTIVE IN THE FUTURES MARKET AT THESE PRICES WE'RE PROBABLY OVERVALUED IT'S JUST A QUESTION OF HOW MUCH ANALYSTS SAY THERE MAY STILL BE SOME STRENGTH LEFT IN THE MARCH CONTRACT AS COMMERCIAL LUMBER COMPANIES THAT HOLD FUTURES CONTRACTS USE THEM TO TAKE DELIVERY OF LUMBER HOWEVER ANALYSTS NOTE THAT THE PRICE OF THE FUTURES CONTRACT FOR MAY DELIVERY IS CONSIDERABLY LOWER THAN THE MARCH CONTRACT PRICE IN TRADING YESTERDAY THE PRICE OF THE MAY CONTRACT ROSE 560 TO 39150 PER THOUSAND BOARD FEET MANY LUMBER WHOLESALERS HAVE HOARDED LUMBER BECAUSE THEY BELIEVED PRICES WOULD CONTINUE TO CLIMB AS A RESULT ANALYSTS SAY PRICES MAY NOW BE SO HIGH THAT THERE IS MORE LUMBER ACTUALLY AVAILABLE THAN THERE ARE CUSTOMERS TO BUY IT AT SOME POINT THE DEMAND WILL DRY UP BECAUSE IT'S NOT COSTEFFECTIVE FOR BUILDERS TO BUY AT THESE PRICES SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH BUILDERS ARE SAYING THAT THE RUNUP IN THE LUMBER PRICE HAS ADDED 5000 TO THE COST OF BUILDING A 2000SQUAREFOOT HOME MR RILEY AGREES THE AVERAGE RETAIL SELLING PRICE IS ABOUT 100 BELOW THE WHOLESALE PRICE ON THE CASH MARKET HE SAYS AND EVEN THOSE RETAIL PRICES ARE IMPACTING DEMAND I'M HEARING THAT BUILDERS ARE CANCELING JOBS BECAUSE THEY CAN'T PAY THE EXTRA FEW THOUSAND DOLLARS FOR LUMBER WHILE PRICES ON THE CASH MARKET WERE QUOTED AS HIGH AS 460 YESTERDAY MR RILEY'S BLOCH LUMBER WAS ASKING 435 THE BEST PRICE THE COMPANY RECEIVED RECENTLY WAS 425 IN VERY LIGHT VOLUME HE SAID THERE IS ALSO THE POSSIBILITY THAT CONSTRUCTION COMPANIES WILL BEGIN SWITCHING TO OTHER BUILDING MATERIALS THAN LUMBER BECAUSE THE HIGH PRICE HAS MADE IT IMPOSSIBLE TO EARN A PROFIT BUILDING SMALL HOMES NEVERTHELESS ANALYSTS CAUTION THAT THE LUMBER MARKET REMAINS EXTREMELY VOLATILE IT IS EXTREMELY RISKY THEY SAY TO ASSUME THAT LUMBER FUTURES PRICES WON'T CONTINUE TO SURGE AT LEAST IN THE SHORT TERM IN OTHER COMMODITY MARKETS ENERGY CRUDE OIL FUTURES PRICES FOR APRIL ENDED THE SESSION FIVE CENTS A BARREL HIGHER YESTERDAY AFTER OUTRUNNING PROFITTAKING PRESSURES THAT HOUNDED THE CONTRACTS MOST OF THE DAY TRADERS WERE PERSISTENT SELLERS FOR MUCH OF THE TRADING DAY ON THE NEW YORK MERCANTILE EXCHANGE CASHING IN ON A RECENT INCREASE IN CRUDE PRICES BUT THE SELLING SPREE HAD RUN ITS COURSE BY LATE YESTERDAY AND APRIL CRUDE GAINED TO CLOSE AT 2053 A BARREL VOLUME WAS LIGHT AND MARKET OBSERVERS SAID THE DAY'S TRADING WAS MARKED BY TECHNICAL FACTORS MEANWHILE GASOLINE FUTURES SUFFERED FROM INDUSTRY REPORTS OF RELATIVELY HIGH SUPPLIES MARCH GASOLINE LOST 091 CENT TO CLOSE AT 5365 CENTS A GALLON HEATING OIL CONTINUED TO BENEFIT FROM SEVERE WINTER WEATHER IN PARTS OF THE US WITH THE MARCH CONTRACT GAINING 011 CENT A GALLON TO SETTLE AT 5738 CENTS GRAINS & SOYBEANS WHEAT PRICES SETTLED MIXED IN THIN ACTIVITY AS TRADERS WAITED FOR DEVELOPMENTS ON RUSSIA'S GRAIN DEBT DEFAULTS AGRICULTURE DEPARTMENT OFFICIALS MET WITH US FARM GROUP REPRESENTATIVES YESTERDAY TO CONSIDER WAYS TO RESTART US GRAIN EXPORTS TO RUSSIA WHICH CAME TO A STANDSTILL IN LATE NOVEMBER WHEN MOSCOW BEGAN MISSING PAYMENTS ON BANK LOANS USED TO IMPORT US FARM COMMODITIES AGRICULTURE SECRETARY MIKE ESPY IS SLATED TO MEET WITH A RUSSIAN DELEGATION TOMORROW ON THE ISSUE TRADERS ARE SPECULATING THAT THE US GOVERNMENT IS MULLING WHETHER TO SHIP COMMODITIES TO RUSSIA AS FOOD AID OR TO BEGIN MAKING DIRECT FOODBUYING LOANS TO MOSCOW MEANWHILE MORE BANKS ARE ASKING THE AGRICULTURE DEPARTMENT TO MAKE GOOD ON RUSSIA'S MISSED LOAN PAYMENTS WHICH HAVE CLIMBED TO 3591 MILLION SINCE NOVEMBER SO FAR FOUR BANKS HAVE FILED CLAIMS FOR 67 MILLION THE NUMBER OF CLAIMS IS EXPECTED TO RISE BECAUSE RUSSIA IS CONTINUING TO MISS PAYMENTS ON THE GRAIN LOANS WHICH INTERNATIONAL BANKS ORIGINALLY ARRANGED IN LARGE PART BECAUSE THE US GOVERNMENT GUARANTEED REPAYMENT ACCORDING TO THE AGRICULTURE DEPARTMENT THE BANKS THAT HAVE FILED CLAIMS SO FAR INCLUDE NETHERLANDSBASED RABOBANK NEDERLAND BELGIUMBASED GENERALE BANK AND MONTE DEI PASCHI DI SIENA OF ITALY EARLIER THIS MONTH FRENCHBASED BANQUE INDOSUEZ BECAME THE FIRST INTERNATIONAL LENDER TO FILE A CLAIM WITH THE AGRICULTURE DEPARTMENT PRECIOUS METALS PRECIOUS METALS FUTURES PRICES FELL ACROSS THE BOARD AMID CONCERNS ABOUT THE DEFLATIONARY EFFECTS OF THE CLINTON TAX PROGRAM AND PERSISTENT WEAKNESS IN THE JAPANESE ECONOMY ANALYSTS SAID ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM AND PALLADIUM FUTURES REMAINED VOLATILE PLATINUM FOR APRIL DELIVERY SKIDDED 360 TO 34320 AN OUNCE WHILE PALLADIUM FOR JUNE DELIVERY SHED 525 TO 9660 AN OUNCE ON TUESDAY PLATINUM HAD SETTLED 860 AN OUNCE HIGHER FOLLOWING A 1920 PLUNGE MONDAY PALLADIUM HAD JUMPED 635 TUESDAY AFTER A 9 SLIDE MONDAY GOLD FOR APRIL DELIVERY SLIPPED 120 TO 33040 AN OUNCE YESTERDAY ON THE NEW YORK COMMODITY EXCHANGE WHILE SILVER FOR MARCH DELIVERY SHED 22 CENTS TO 356 AN OUNCE THERE'S CONCERN OVER SLOW GROWTH AND AS FAR AS GOLD IS CONCERNED INFLATION IS VERY FAR FROM PEOPLE'S MINDS SAID RAVI BULCHANDANI A SENIOR COMMODITY ANALYST WITH GOLDMAN SACHS IN NEW YORK GOLD IS VIEWED AS A CLASSIC HEDGE AGAINST INFLATION 9302250081 930225 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 DAYTON HUDSON CORP 150 MILLION ISSUE OF NOTES DUE MARCH 1 2003 WAS PRICED AS 6 5/8 AT 99956 TO YIELD 663 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DUKE POWER CO 125 MILLION ISSUE OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2008 WAS WON BY UNDERWRITERS LED BY FIRST BOSTON CORP THE BONDS WILL BE REOFFERED AS 6 3/8 AT 96942 TO YIELD 6701 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P CIT GROUP HOLDINGS INC 100 MILLION ISSUE OF NOTES DUE MARCH 3 1994 WERE PRICED TO FLOAT DAILY AT A SPREAD OF 2625 POINTS BELOW THE PRIME RATE THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS CIT GROUP HOLDINGS IS JOINTLY OWNED BY DAIICHI KANGYO BANK LTD AND CHEMICAL BANKING CORP YORK INTERNATIONAL CORP 100 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2003 WAS PRICED AS 6 3/4 AT 9997 TO YIELD 6754 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CONSOLIDATED CIGAR ACQUISITION CORP 90 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE MARCH 1 2003 WAS PRICED AT PAR TO YIELD 105 THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 85 MILLION THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON DOW CHEMICAL CO 150 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2023 WAS PRICED AS 7 3/8 AT 9893 TO YIELD 7465 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CAROLINA POWER & LIGHT CO 150 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE MARCH 1 2023 WAS WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY PRUDENTIAL SECURITIES INC THE BONDS WERE REOFFERED AS 7 1/2 AT 9894 TO YIELD 759 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P CONTINENTAL CORP 150 MILLION ISSUE OF NOTES DUE MARCH 1 2003 WAS PRICED AS 7 1/4 AT 99404 TO YIELD 7335 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 137 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS USX CORP 150 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2023 WAS PRICED AS 8 1/2 AT 9927 TO YIELD 8568 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 173 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO UTILICORP UNITED INC 125 MILLION ISSUE OF UTILICORP UNITED INC DEBENTURES DUE MARCH 1 2023 WAS PRICED AS 8 AT 99503 TO YIELD 8044 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS STANFORD UNIVERSITY HOSPITAL OF CALIFORNIA 73 MILLION CERTIFICATES OF PARTICIPATION HAVE BEEN PRICED BY A MORGAN STANLEY & CO GROUP THE HOSPITAL HAS ISSUED THE SECURITIES THROUGH THE ASSOCIATION OF BAY AREA GOVERNMENTS AUTHORITY FOR NONPROFIT CORPORATIONS YIELDS RANGE FROM 225 IN 1993 TO 563 IN 2017 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING FEDERAL HOME LOAN MORTGAGE CORP 308750000 ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1487 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199340 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1492 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199341 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 770 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS DELAWARE 55 MILLION SERIES 1993A GENERAL OBLIGATION BONDS WERE APPARENTLY WON BY MANAGING UNDERWRITER FIRST BOSTON CORP YIELDS RANGE FROM 200 IN 1994 TO 530 IN 2012 AND 2013 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING LEE COUNTY FLA SCHOOL BOARD 89 MILLION SERIES 1993A CERTIFICATES OF PARTICIPATION COPS HAVE BEEN REPRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR BONDS DUE IN 200408 AND 2013 WERE LOWERED BY 50 BASIS POINTS DUE TO STRONG DEMAND THE NEW RANGE OF YIELDS FOR THE ISSUE IS 300 IN 1994 TO 565 IN 2013 THE INITIAL RANGE WAS 300 IN 1994 TO 570 IN 2013 THE CERTIFICATES ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MANUFACTURED HOMES COMMUNITIES INC INITIAL OFFERING OF 44 MILLION SHARES WAS PRICED AT 2575 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 2425 AND 2575 A SHARE CHIPSOFT INC OFFERING OF 18 MILLION COMMON SHARES WAS PRICED AT 1450 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO THE SIZE OF THE OFFERING WAS DECREASED FROM THE ORIGINALLY PLANNED 34 MILLION SHARES EUROPEAN COMMUNITY SUPRANATIONAL 29 BILLION MARKS OF 6 1/2 EUROBONDS DUE MARCH 11 2000 REOFFERED INITIALLY AT 9975 TO YIELD 655 EIGHT BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE VIA DRESDNER BANK AG FEES 1 3/4 POINTS CAISSE AUTONOME DE REFINANCEMENT FRENCH AGENCY THREE BILLION FRENCH FRANCS OF 775 EUROBONDS DUE DEC 6 1999 PRICED AND REOFFERED INITIALLY AT 99055 TO YIELD 795 30 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT NOTE VIA CREDIT COMMERCIAL DE FRANCE FEES 030 MITSUI & CO JAPAN 30 BILLION YEN OF 46 EUROBONDS DUE JUNE 11 1998 PRICED AT 101675 AND REOFFERED INITIALLY AT 10020 TO YIELD 455 VIA DAIWA EUROPE LTD FEES 1 7/8 ALSO 30 BILLION YEN OF 43 EUROBONDS DUE JUNE 11 1997 VIA NOMURA INTERNATIONAL PLC REOFFERED INITIALLY AT 99825 TO YIELD 435 FEES 1 5/8 POINTS MARUBENI CORP JAPAN 30 BILLION YEN OF 46 EUROBONDS DUE JUNE 17 1998 PRICED AT 10166 AND REOFFERED INITIALLY AT 100085 TO YIELD 458 VIA YAMAICHI INTERNATIONAL EUROPE LTD FEES 1 7/8 PEUGEOT TALBOT MOTOR CO PLC FRENCH PARENT 100 MILLION OF 7 5/8 EUROBONDS DUE DEC 22 1997 PRICED AT 101265 AND REOFFERED INITIALLY AT 9969 TO YIELD ABOUT 90 BASIS POINTS ABOVE THE COMPARABLE UK GILT VIA NATWEST CAPITAL MARKETS LTD GUARANTEED BY AUTOMOBILES PEUGEOT THE FRENCH AUTO MAKER FEES 1 7/8 NATIONAL AUSTRALIA BANK AUSTRALIA 100 MILLION AUSTRALIAN OF 7 3/4 EUROBONDS DUE MARCH 31 1998 PRICED AT 100863 TO YIELD 804 AFTER FEES VIA BARCLAYS DE ZOETE WEDD FEES 2 POINTS 9302250079 930225 MARKETING & MEDIA ADVERTISING FOOTE CONE BEATS OUT WELLS RICH FOR ALKASELTZER PLUS ACCOUNT BY LAURA BIRD MILES INC ENDED A LONG RELATIONSHIP WITH WELLS RICH GREENE BDDP BY HIRING FOOTE CONE & BELDING COMMUNICATIONS FOR ITS 25 MILLION ALKASELTZER PLUS ACCOUNT THE LOSS OF THE BIG COLD REMEDY BUSINESS IS A TOUGH BREAK FOR WELLS RICH THE NEW YORK AGENCY THAT FORGED MUCH OF ITS REPUTATION ON CREATIVE WORK DONE FOR THE ORIGINAL ALKASELTZER ANTACID STARTING IN 1972 THAT WORK INCLUDED THE POPULAR JINGLE PLOPPLOP FIZZFIZZ OH WHAT A RELIEF IT IS AND THE OFTREPEATED PUNCHLINES TRY IT YOU'LL LIKE IT AND I CAN'T BELIEVE I ATE THE WHOLE THING THE REGULAR ALKASELTZER ACCOUNT HANDLED IN RECENT YEARS BY INTERPUBLIC GROUP'S MCCANNERICKSON WAS UNAFFECTED BY THE REVIEW AT FOOTE CONE THE BIG BUT LOWKEY CHICAGO AGENCY LANDING ALKASELTZER PLUS CONTINUES A RECENT WINNING STREAK ALTHOUGH COMPETITORS HAVE BEEN KNOWN TO DISMISS ITS CREATIVE APPROACH AS STRATEGY ON FILM FOOTE CONE HAS QUIETLY AMASSED ONE OF THE INDUSTRY'S BEST NEWBUSINESS RECORDS IN THE PAST YEAR OR SO A GAGGLE OF CHICAGO SHOPS TOOK PART IN THE CREATIVE COMPETITION FOR ALKASELTZER PLUS INCLUDING FOOTE CONE BAYER BESS VANDERWARKER AND OMNICOM GROUP'S BBDO AND WPP GROUP'S OGILVY & MATHER DOUGLAS BELLAIRE MILES VICE PRESIDENT OF MARKETING SAID THE ELKHART IND COMPANY WAS WILLING TO DITCH ITS 21YEAR RELATIONSHIP WITH WELLS RICH IN PART BECAUSE IT WANTED TO WORK WITH SOMEONE CLOSER TO HOME AND EVEN THOUGH WELLS RICH OPERATES AN OFFICE IN CHICAGO IT KEPT THE ACCOUNT AT ITS NEW YORK FLAGSHIP FOR TOO LONG INDEED KEN OLSHAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WELLS RICH NOTED THAT THE CLIENT HAD COMPLAINED OF BEING INCONVENIENCED BY THE LONGDISTANCE RELATIONSHIP A YEAR AGO HAD I RESPONDED THEN I WOULDN'T BE WRITING THIS TODAY MR OLSHAN SAID IN A MEMO SENT TO AGENCY EMPLOYEES YESTERDAY BUT THE MARKETERS OF ALKASELTZER PLUS ALSO MAY HAVE WANTED TO PUMP SOME NEW LIFE INTO THE BRAND IN THE 16 BILLION ANNUAL MARKET FOR COUGHANDCOLD REMEDIES PRIVATELABEL ENTRIES ARE RACKING UP THE HIGHEST GROWTH AMERICAN HOME PRODUCTS' ROBITUSSIN IS THE LEADING NATIONAL BRAND WITH A 106 SHARE ACCORDING TO INFORMATION RESOURCES INC FIGURES FOR A THREEMONTH PERIOD ENDED LAST OCTOBER ALKASELTZER PLUS RANKED ONLY NO 5 IN THE PERIOD WITH A TRAILING SHARE OF 63 AND A SALES DECLINE OF 8 WELLS RICH'S CURRENT SPOTS PUNCTUATED BY THE TAGLINE TOUGH MEDICINE FOR TOUGH WINTER COLDS WILL CONTINUE RUNNING THROUGH THE END OF NEXT MONTH WHEN THE THE 1 BILLIONPLUS INDUSTRY'S COLD SEASON ENDS FOOTE CONE'S WORK WON'T AIR UNTIL NEXT FALL MR OLSHAN SAID IN HIS MEMO THAT ALKASELTZER WAS A CONFUSED AND DYING BRAND WHEN THE TOUGH CAMPAIGN BEGAN AIRING TWO YEARS AGO A DEMAND FOR SUBSTANTIAL SALES INCREASES FROM MILES'S GERMAN PARENT BAYER AG PUSHED THE ACCOUNT INTO REVIEW HE SAID THE LET'S TRY SOMETHING NEW' MENTALITY WON OUT MR OLSHAN SAID IN THE NOTE TO HIS STAFF THE MOOD WAS OF COURSE FAR MORE UPBEAT IN THE OFFICES OF FOOT CONE WHERE THE AGENCY CLAIMED NEWBUSINESS WINS TOTALING 300 MILLION LAST YEAR ITS NEW ROSTER INCLUDES SUCH LUMINARIES AS KRAFT GENERAL FOODS' LOUIS RICH UNIT ACE HARDWARE METROGOLDWYNMAYER AND THE ITALIAN SPORTSWEAR MAKER FILA OLD CLIENTS INCLUDING LEVI'S DOCKERS AND RJR NABISCO HAVE GIVEN THE AGENCY BIG NEW ASSIGNMENTS AND LAST NOVEMBER PUBLICISFCB THE AGENCY'S EUROPEAN JOINT VENTURE WITH PARIS AGENCY PUBLICIS SNAGGED THE WORLDWIDE AD ACCOUNT FOR THE PERRIER SPARKLING WATER BRAND THAT FIGURE DOESN'T TAKE INTO ACCOUNT ANY LOSSES OF BUSINESS BUT THE CHICAGO SHOP SEEMS TO BE OUTPACING ITS PUBLICLY TRADED COMPETITORS EVEN GIVEN WHAT SOMETIMES SEEMS LIKE CONSTANT CLIENT TURNOVER IN THE INDUSTRY IN 1992 NET NEW BUSINESS INCREASED 4 AMONG FIVE BIG PUBLICLY TRADED AGENCIES FOOTE CONE INTERPUBLIC GROUP OMNICOM GROUP SAATCHI & SAATCHI CO AND WPP GROUP ACCORDING TO THE NEW BUSINESS MONITOR PUBLISHED THIS MONTH BY GOLDMAN SACHS ANALYST MARK FRIEDMAN FOOTE CONE MORE THAN DOUBLED NET NEW BILLINGS IN THAT TIME FROM 67 MILLION IN 1991 TO 168 MILLION LAST YEAR THE LATEST WIN COMES AS FOOTE CONE IS STARTING TO THINK IT'S SHAKING ITS STODGY CREATIVE REPUTATION ITS RECENT AD CAMPAIGN FOR DOCKERS THE MALE FASHION BRAND FROM LEVI STRAUSS & CO WON RAVES FROM THE TRADE PRESS FOR DESCRIBING THE CLOTHES BY DESCRIBING THE COLORS GREY ONE OF THE SPOTS SAID IT'S WHAT BLACK WOULD LOOK LIKE IF IT COULD LIGHTEN UP A LITTLE NORTHWEST NORTHWEST AIRLINES INC A UNIT OF WINGS HOLDINGS INC ST PAUL MINN TAPPED FOOTE CONE & BELDING COMMUNICATIONS CHICAGO TO HANDLE ITS INTERNATIONAL ADVERTISING WHICH INDUSTRY EXECUTIVES ESTIMATE AT ABOUT 20 MILLION THE ACCOUNT COVERING ASIAN AND EUROPEAN MARKETS WAS PREVIOUSLY HANDLED BY WPP GROUP'S J WALTER THOMPSON WHICH RECENTLY SPLIT WITH NORTHWEST FALLON MCELLIGOTT MINNEAPOLIS CONTINUES TO HANDLE THE US PORTION OF THE ACCOUNT ACCOUNT AQUA VIE BEVERAGE CORP KETCHUM IDAHO TAPPED GOLDBERG MOSER O'NEILL SAN FRANCISCO TO HANDLE THE 7 MILLION ACCOUNT FOR ITS LINE OF LIGHTLY FLAVORED STILL WATERS TOM GILLESPIE AQUA VIE'S PRESIDENT SAID HAL RINEY & PARTNERS SAN FRANCISCO ALSO IS BEING RETAINED AS A CREATIVE CONSULTANT ALTHOUGH THE MAJORITY OF WORK ON THE ACCOUNT INCLUDING MEDIA IS TO BE HANDLED BY GOLDBERG WHO'S NEWS FOOTE CONE & BELDING COMMUNICATIONS PROMOTED GEOFFREY FROST TO EXECUTIVE VICE PRESIDENT AND MANAGING PARTNER IN CHARGE OF THE AGENCY'S INTERNATIONAL CREATIVE WORK MR FROST 43 YEARS OLD HAD BEEN SENIOR EXECUTIVE VICE PRESIDENT AND DIRECTOR OF MARKETING PLANNING AT THE AGENCY'S NEW YORK OFFICE FCB/LEBER KATZ PARTNERS 9302250078 930209 MARKETING KARAN GAMBLES ON EXPANDING MEN'S LINE BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DONNA KARAN LOOKS AT HER FUTURE AND SEES MORE MEN ONLY A YEAR AFTER INTRODUCING A MEN'S COUTURE LINE OF 1500 BUSINESS SUITS AND 900 CASHMERE SWEATERS THE SEVENTH AVENUE DESIGNER WAS NAMED THE BEST MENSWEAR DESIGNER OF 1992 BY THE COUNCIL OF FASHION DESIGNERS OF AMERICA BUT FOR MS KARAN WHOSE FANS INCLUDE BARBRA STREISAND AND HILLARY RODHAM CLINTON THE REAL TEST IS YET TO COME IN A FEW WEEKS THE 44YEAROLD DESIGNER WILL INTRODUCE A VASTLY EXPANDED MENSWEAR LINE IN WHAT MAY BE HER RISKIEST VENTURE SINCE FOUNDING HER FASHION HOUSE EIGHT YEARS AGO SHE AIMS TO BLANKET DEPARTMENT STORES WITH A COLLECTION OF HIGHPRICED MEN'S CASUAL WEAR THAT AT ITS MOST EXTREME INCLUDES SKIRTLIKE SARONGS MS KARAN WHOSE CLOSELY HELD COMPANY IS CALLED DONNA KARAN NEW YORK ESTIMATES THAT THIS NEW DKNY MEN LINE WILL RING UP 30 MILLION IN SALES IN ITS FIRST YEAR KEENLY AWARE THAT MOST MEN RELY ON WOMEN TO HELP PICK OUT THEIR CLOTHES SHE IS COUNTING ON HER HIGH PROFILE WITH WOMEN WHO BOUGHT 185 MILLION OF DKNY FASHIONS LAST YEAR TO HELP HER CHALLENGE SUCH ESTABLISHED MENSWEAR BRANDS AS POLO/RALPH LAUREN NAUTICA AND TOMMY HILFIGER IF DONNA KARAN MAKES IT IN MENSWEAR LIKE SHE DID WITH DKNY SHE WILL BE ONE OF THE ONLY WOMEN'SWEAR DESIGNERS TO SUCCESSFULLY CROSS OVER DECLARES ALAN MILLSTEIN A RETAILINDUSTRY CONSULTANT SHE'LL BE UP THERE WITH RALPH LAUREN CALVIN KLEIN AND GIORGIO ARMANI WHICH WILL MAKE HER THE NEXT GREAT DESIGNER MACHINE FOR THE 1990S PROMINENT WOMEN'SWEAR DESIGNER ISAAC MIZRAHI LASTED A TOTAL OF TWO YEARS IN THE MENSWEAR BUSINESS EVEN AFTER WINNING THE 1991 CFDA MENSWEAR AWARD ADRIENNE VITTADINI AND ANNE KLEIN TWO OF SEVENTH AVENUE'S STRONGEST LABELS DABBLED BRIEFLY IN MENSWEAR ONLY TO PULL OUT WOMEN WHO DESIGN MENSWEAR SELDOM ADVERTISE THE FACT AT THE SUGGESTION OF HER BUSINESS PARTNER DESIGNER JHANE BARNES ADDED AN H TO HER NAME SO THAT HER MENSWEAR LABEL WOULD LOOK MORE MASCULINE MS KARAN CONSIDERED OTHER NAMES FOR HER MENSWEAR LABEL INCLUDING DON KARAN BUT ULTIMATELY DECIDED TO STICK WITH HER ESTABLISHED TRADEMARK MS KARAN'S NEW MENSWEAR RUNS THE GAMUT FROM JEANS AND SWEAT PANTS TO SLEEVELESS SHIRTS AND MECHANIC'S JUMPSUITS HER SIGNATURES LOTS OF BLACK LUSH FABRICS AND A BAGGY FIT THE CLOTHING IS TARGETED AT COLLEGE MEN AND BABY BOOMERS TODAY'S MOST INFLUENTIAL BOOMER PRESIDENT CLINTON WAS PHOTOGRAPHED RECENTLY IN A NAVY SUIT FROM MS KARAN'S COUTURE COLLECTION THE COLLECTION WILL BE MERCHANDISED AS SYSTEMS OF 80 SHIRTS 300 JACKETS 250 SWEATERS AND 100 PANTS ALL LAYERED TOGETHER FOR A HIP URBAN LOOK THE MAN DOESN'T HAVE TO SIT AND THINK WHAT GOES WITH WHAT MS KARAN SAYS SOME RETAILERS ARE DUBIOUS THE NUMBER OF MEN WHO TAKE THE TIME TO PUT THEIR CASUAL OUTFITS TOGETHER AND SPEND SEVERAL HUNDRED DOLLARS TO LOOK THAT WAY YOU ARE TALKING ABOUT ARSENIO HALL AND THREE OTHER MEN SAYS DAVID WOLFE CREATIVE DIRECTOR OF DONEGAR GROUP A NEW YORKBASED RETAIL BUYING OFFICE REPRESENTING 1000 STORES AT HER WOMEN'SWEAR SHOW LAST FALL MS KARAN SENT MALE MODELS DOWN THE RUNWAY IN COTTONPRINT SARONGS THE GAMBIT GENERATED PLENTY OF COPY IN THE FASHION PRESS BUT FEW ORDERS FROM RETAIL BUYERS CHICAGO ADSALES MANAGER LORA GIER PLANS TO STEER HER HUSBAND TO A DKNY MEN'S DEPARTMENT WHEN IT COMES TO FASHION SHE SAYS HER HUSBAND WEARS ARMANI SUITS TO THE OFFICE BUT FOR CASUAL CLOTHES HE IS MUCH MORE TRADITIONAL SHE DOESN'T EXPECT HIM TO FAVOR MS KARAN'S ENSEMBLE APPROACH HE TENDS TO BUY ONE PIECE AT A TIME SHE SAYS ADDING HE THINKS IT'S NOT MACHO TO BUY AN OUTFIT THE WAY THEY SHOW IT OTHER MEN AGREE AS LIZ CLAIBORNE INC DISCOVERED AFTER FOUNDING ITS CLAIBORNE MENSWEAR DIVISION IN 1985 CLAIBORNE'S STRATEGY WAS THEN SIMILAR TO DKNY MEN'S IT MARKETED COMPLETE OUTFITS BUT RETAIL MENSWEAR BUYERS CHERRYPICKED THE LINE FOR THE STRONGEST ITEMS INSTEAD OF ORDERING ENTIRE ENSEMBLES TODAY CLAIBORNE EMPHASIZES SEPARATES MOSTLY SHIRTS AND SWEATERS AND ITS MENSWEAR IS SELLING BETTER SAYS JAY FRIEDMAN PRESIDENT OF THE CLAIBORNE DIVISION MS KARAN'S MEN'S COUTURE SALES OF WHICH WERE 85 MILLION LAST YEAR IS AVAILABLE AT ONLY A FEW UPMARKET SPECIALTY RETAILERS BARNEYS NEW YORK CARRIED IT EXCLUSIVELY THE FIRST YEAR BARNEYS SAYS IT DID WELL WITH THE COUTURE YET HAS ORDERED NOTHING FROM THE NEW DKNY MEN COLLECTION BARNEYS EVER MINDFUL OF ITS EXCLUSIVE IMAGE SAYS IT DIDN'T WANT ITEMS THAT ARE WIDELY AVAILABLE IN DEPARTMENT STORES THE PROBLEM WAS THE DISTRIBUTION RATHER THAN THE FASHION SAYS PETER RIZZO A BARNEYS SENIOR VICE PRESIDENT MS KARAN PREVIEWED HER DKNY MEN COLLECTION IN A CHRISTMAS CATALOG SHE DID FOR THE NEIMAN MARCUS AND BERGDORF GOODMAN STORES ALL OWNED BY NEIMAN MARCUS GROUP WE ARE QUITE PLEASED WITH THE SALES SO FAR SAYS RICK RECTOR A SENIOR VICE PRESIDENT AT BERGDORF'S IN ALL THE SPRING CASUAL WEAR WILL BE CARRIED AT 250 DEPARTMENT AND SPECIALTY STORES MOST OF THEM IN AFFLUENT URBAN AREAS DAYTON HUDSON CORP FOR EXAMPLE WILL OFFER DKNY MEN IN JUST SEVEN OF ITS 59 DAYTON'S HUDSON'S AND MARSHALL FIELDS DEPARTMENT STORES IN A NUMBER OF STORES DKNY MEN WILL BE PITTED AGAINST GIORGIO ARMANI'S NEW CASUAL LINE SOLD UNDER THE ARMANI A/X LABEL MR MILLSTEIN THE RETAIL CONSULTANT SAYS THE A/X INSTORE BOUTIQUES WHERE COTTON SHIRTS SELL FOR 98 HAVE YET TO CATCH FIRE WITH SHOPPERS THE BASIC UNIFORM FOR MOST MEN ON WEEKENDS IS JEANS OR CHINOS WITH SOME KIND OF TOP HE SAYS ADDING THAT PRICE MAY PROVE A STICKING POINT FOR MS KARAN AS IT HAS BEEN FOR ARMANI FOR MANY MEN 80 IS THE COST OF A DINNER FOR TWONOT A COTTON SHIRT DESIGNER TOMMY HILFIGER WHOSE PREPPY MEN'S CASUAL WEAR GENERATES ABOUT 135 MILLION IN ANNUAL SALES BELIEVES THAT MEN SEEKING ECLECTIC HIGH STYLE DON'T NECESSARILY PAY PREMIUM PRICES THIS CUSTOMER HE SAYS MIGHT COMBINE A THRIFTSHOP JACKET WITH A TSHIRT AND WORK BOOTS HE DOESN'T HAVE TO BUY DESIGNER CLOTHES MR HILFIGER SAYS HE'S TOO COOL FOR THAT MS KARAN'S ENTRY INTO MENSWEAR COMES AT A TIME WHEN HER COMPANY IS GROWING RAPIDLY WITH 1992 SALES REACHING 275 MILLION LAST YEAR THE COMPANY WHICH HAS 1000 EMPLOYEES AND 14 DIVISIONS LAUNCHED FOUR NEW BUSINESSES MENSWEAR LINGERIE CHILDREN'S WEAR AND FRAGRANCE THE ENERGETIC MS KARAN SAYS SHE IS EAGER TO BRANCH OUT STILL FURTHER PERHAPS NEXT INTO HOME FURNISHINGS THE QUESTION IS WHETHER THE DESIGNER WILL HAVE THE TIME TO NURTURE ALL OF THESE NEW PROJECTS AFTER LONG WORK DAYS MS KARAN AND HER PARTNER HUSBAND STEPHAN WEISS MAINTAIN A BUSY SOCIAL CALENDAR THAT RECENTLY INCLUDED ATTENDING THE CLINTON INAUGURAL STILL DONNA IS DELEGATING A LOT MORE OF HER WORK NOW SAYS TOMIO TAKI A JAPANESE BUSINESSMAN WHOSE HOLDING COMPANY TAKIHYO LTD OWNS 50 OF MS KARAN'S COMPANY AND ALL OF ANNE KLEIN WHERE MS KARAN WORKED FROM 1974 TO 1984 SHE'S NOT TOO STRETCHED MR TAKI ADDS BUT SHE IS STRETCHED SEE RELATED LETTER LETTERS TO THE EDITOR THE LATEST IN FASHION CAN FOSTER GOODWILL WSJ FEB 25 1993 9302090024 9302250077 930225 OTC FOCUS HEALTH CARE TECHNOLOGY STOCKS HELP INDEX RISE AMGEN PLUNGES LATE IN DAY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REBOUNDING HEALTH CARE AND TECHNOLOGY STOCKS PROPELLED THE NASDAQ MARKET TO A 17 GAIN THAT WAS BEFORE AMGEN DROPPED THE BOMB THE NASDAQ COMPOSITE INDEX SURGED 1090 POINTS TO 66246 AT THE CLOSE ADVANCING ISSUES OUTNUMBERED DECLINERS 1499 TO 1136 ON VOLUME OF 2809 MILLION SHARES UP FROM TUESDAY'S 2709 MILLION THEN AFTER THE MARKET CLOSED AMGEN TOOK A SPECTACULAR DIVE IN AFTERHOURS TRADING REVERSING THE STOCK'S EARLIER GAIN OF 2 3/4 TO 46 1/4 AMID ACTIVE VOLUME AMGEN TRADED AT 34 ON REUTERS HOLDINGS' INSTINET SYSTEM AT ABOUT 715 PM EST TWO HOURS LATER IT WAS INDICATED AT 33 THE PLUNGE CAME AFTER THE THOUSAND OAKS CALIF COMPANY DISCLOSED THAT PERSHARE EARNINGS FOR ITS FIRST QUARTER WILL BE 10 TO 15 BELOW ANALYSTS' 60CENT ESTIMATES YEARAGO PROFIT WAS 43 CENTS A SHARE AMGEN BLAMED LOWERTHANEXPECTED DOMESTIC SALES OF ITS DRUG NEUPOGEN WHICH IS USED TO PREVENT CERTAIN INFECTIONS IN CANCER PATIENTS AND GENERATES ABOUT 40 OF REVENUE BEFORE THE AMGEN NEWS BIOTECH STOCKS WERE RISING ON MONDAY THE GROUP FELL SHARPLY AFTER SYNERGEN ANNOUNCED WEAKERTHANEXPECTED TEST RESULTS OF ITS DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION ON TUESDAY THE STOCKS STEADIED SYNERGEN YESTERDAY EDGED UP 1/4 TO 15 BIOGEN ROSE 1 1/8 TO 28 GENZYME POPPED UP 2 5/8 TO 32 1/2 AND CHIRON CLIMBED 2 TO 49 1/4 HEALTH CARE STOCKS BEATEN DOWN BY INVESTORS' FEARS OF PRESIDENT CLINTON'S COSTCUTTING PLANS ALSO REGAINED SOME GROUND US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION LEAPED 4 3/8 TO 44 1/2 AND TAKECARE A MANAGEDCARE COMPANY ROSE 1 TO 29 1/4 LINCARE POPPED UP 3 TO 24 DONALDSON LUFKIN & JENRETTE ADDED THE HOME HEALTH CARE COMPANY TO ITS RECOMMENDED LIST BUT INVESTORS SHOULD BE CAUTIOUS ABOUT JUMPING BACK INTO THESE STOCKS TRADERS SAID IT JUST SEEMS LIKE EVERYBODY GOES WITH THE MOMENTUM FOR THE DAY IN THE HEALTH CARE AND BIOTECH AREA ONE DAY THEY ALL WANT TO SELL AND THE NEXT THEY ALL WANT TO BUY SAID HEDI REYNOLDS HEAD OF NASDAQ TRADING AT MORGAN KEEGAN & CO IN MEMPHIS TENN I THINK WE ARE GOING TO HAVE A NERVOUS MARKET UNTIL SOME OF THE UNCERTAINTY WITH THE CLINTON ADMINISTRATION SETTLES MANY TECHNOLOGY ISSUES ALSO POSTED A STRONG COMEBACK MICROSOFT JETTED UP 4 3/8 TO 83 7/8 INTEL LEAPED 4 1/2 TO 117 3/4 AND ORACLE SYSTEMS JUMPED 2 TO 31 5/8 BUT PERSONALCOMPUTER STOCKS FELL PRESSURED BY SELLING IN DELL COMPUTER WHICH TUMBLED 6 1/8 OR 17 TO 30 1/8 AFTER ITS PLANS FOR A STOCK OFFERING WERE SCUTTLED APPLE COMPUTER SLID 5/8 TO 53 5/8 SUN MICROSYSTEMS FELL 1 1/8 TO 34 5/8 AND AST RESEARCH SLIPPED 1 1/8 TO 16 1/4 DELL TOPPLED AFTER THE COMPANY WITHDREW ITS PLANNED FOUR MILLIONSHARE OFFERING AND GOLDMAN SACHS & CO THE LEAD UNDERWRITER LOWERED ITS BUY RATING TO MARKET PERFORMER GOLDMAN HAD BEEN RESTRICTED BY SECURITIES AND EXCHANGE COMMISSION RULES FROM MAKING STATEMENTS ABOUT DELL WHILE THE OFFER WAS PENDING IN NOVEMBER THE PLANNED OFFERING BEGAN TO UNRAVEL WHEN A KIDDER PEABODY ANALYST LOWERED HIS RATING ON THE STOCK AND RAISED CONCERNS ABOUT THE EFFECT OF PAST FOREIGNCURRENCY TRADING ON DELL'S PREVIOUS EARNINGS THE CURRENCY ISSUE HAS SINCE DISSIPATED BUT THE NOVEMBER COMMOTION PROMPTED AN INQUIRY BY THE SEC LEADING TO WEEKS OF DELAYS FOR THE OFFERING ANALYSTS SAID THE DELAYS EVENTUALLY FORCED THE COMPANY TO WITHDRAW ITS OFFERING YESTERDAY DELL SAID THAT ITS EARNINGS MOMENTUM WOULD CONTINUE AND THE COMPANY EXPECTS EARNINGS FOR FISCAL 1994 ENDING IN JANUARY WILL BE IN THE RANGE OF 330 TO 375 A SHARE WHICH IS IN LINE WITH WALL STREET PROJECTIONS ELSEWHERE VESTAR JUMPED 2 1/8 TO 12 1/4 THE SAN DIMAS CALIF BIOTECH COMPANY FILED A NEW DRUG APPLICATION FOR DAUNOXOME FOR THE TREATMENT OF AIDSRELATED KAPOSI'S SARCOMA VESTAR SAID THAT KAPOSI'S SARCOMA IS THE MOST COMMON OF CANCERS THAT AFFLICT AIDS PATIENTS SHARES OF AUTODESK A SAUSALITO CALIF SOFTWARE COMPANY CLIMBED 2 1/8 TO 45 1/4 LATE TUESDAY IT POSTED FOURTHQUARTER NET INCOME OF 44 CENTS A SHARE AFTER TAKING A 12CENT CHARGE FROM THE SETTLEMENT OF A LAWSUIT A YEAR AGO IT EARNED 38 CENTS A SHARE ANALYSTS AT COWEN & CO AND HAMBRECHT & QUIST RAISED THEIR RATINGS ADVANTA'S CLASS A SHARES BOUNCED BACK JUST AS SMARTLY AS THEY TUMBLED TUESDAY THE STOCK RETOOK THE 5 3/4 POINTS IT LOST A DAY EARLIER ON RUMORS THE CLINTON ADMINISTRATION WOULD SEEK TO CAP THE INTEREST RATES THAT MAY BE CHARGED BY CREDIT CARD ISSUERS SUCH AS ADVANTA THE TREASURY DENIED THE RUMORS THE CLAYMONT DEL COMPANY'S SHARES CLOSED AT 34 3/4 DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9302250076 930225 COUNTERCLAIM AGAINST STAC REDMOND WASH MICROSOFT CORP HAS ASKED A US DISTRICT COURT TO THROW OUT A PATENT INFRINGEMENT SUIT FILED AGAINST IT BY STAC ELECTRONICS INC AND HAS ALSO FILED A COUNTERCLAIM AGAINST STAC MICROSOFT'S ACTIONS WERE IN RESPONSE TO A SUIT FILED IN JANUARY BY STAC A CARLSBAD CALIF SOFTWARE COMPANY THE SUIT FILED IN CENTRAL DISTRICT COURT IN LOS ANGELES SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION BARRING MICROSOFT FROM USING DATA COMPRESSION TECHNOLOGY PROTECTED BY TWO PATENTS ON TUESDAY MICROSOFT DENIED STAC'S ALLEGATIONS AND ASKED THE COURT TO DECLARE THE SUIT INVALID MICROSOFT ALSO FILED A COUNTERCLAIM ACCUSING STAC OF CONSPIRACY TO DEFRAUD AND BREACH OF CONTRACT RELATED TO A MICROSOFT PATENT ACCORDING TO MICROSOFT'S SUIT STAC NEGOTIATED IN BAD FAITH WITH MICROSOFT WHICH IS ASKING FOR UNSPECIFIED DAMAGES GARY CLOW STAC'S PRESIDENT SAID IN A STATEMENT THAT MICROSOFT'S COUNTERCLAIMS WERE WITHOUT BASIS 9302250075 930225 BIG OIL FIRMS CHALLENGE CALIFORNIA LOOPHOLE FOR SMALL REFINERIES SACRAMENTO CALIF THREE LARGE OIL COMPANIES HAVE SUED THE CALIFORNIA AIR RESOURCES BOARD CHALLENGING A LOOPHOLE THAT GIVES SMALLER REFINERIES EXTRA TIME BEFORE THEY MUST MAKE THE CLEANER GASOLINE THE STATE REQUIRES MOBIL CORP CHEVRON CORP AND TEXACO CORP FILED SUIT EARLIER THIS MONTH IN SUPERIOR COURT IN SACRAMENTO CLAIMING THE LOOPHOLE GIVES UNFAIR COMPETITIVE ADVANTAGE TO FIVE SMALLER REFINERIES IT'S BAD ENVIRONMENTAL POLICY AND BAD ECONOMIC POLICY A SPOKESMAN FOR MOBIL SAID CALIFORNIA HAS THE MOST RESTRICTIVE CLEAN AIR STANDARDS IN THE COUNTRY MORE STRINGENT EVEN THAN THOSE IN THE CLEAN AIR ACT PASSED BY CONGRESS IN 1990 LAST YEAR THE STATE ORDERED REFINERS TO BEGIN SUPPLYING GASOLINE WITH LOWER HYDROCARBON EMISSIONS BY MARCH 1996 BUT IT GAVE REFINERS WITH A CAPACITY OF UNDER 55000 BARRELS A DAY UNTIL 1998 TO MEET THOSE STANDARDS A SPOKESMAN FOR THE CALIFORNIA BOARD SAID THE EXEMPTION WAS AIMED AT GIVING COMPANIES WITHOUT THE CAPITAL OR BORROWING POWER OF THEIR LARGER RIVALS EXTRA TIME TO RAISE MONEY FOR THE NEEDED CHANGES IT'S JUST AN EXTENSION SIMILAR TO OTHERS WE'VE DONE BEFORE THE SPOKESMAN SAID THEY DO HAVE TO MEET THE RULE BUT THE LARGER OIL COMPANIES SAY THE EXEMPTION GIVES THEIR SMALLER RIVALS WHO REPRESENT ABOUT 7 OF CALIFORNIA'S GASOLINE CAPACITY AND HAVE ANNUAL SALES OF BETWEEN 70 MILLION TO 500 MILLION A POTENTIAL WINDFALL OF 230 MILLION OVER TWO YEARS 9302250074 930225 NORTHROP PROBE IS APPARENTLY ENDED BY US FIRM ALLEGEDLY PAID FUNDS TO INDUCE SOUTH KOREA TO BUY F20 FIGHTERS BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE FEDERAL GOVERNMENT APPARENTLY HAS DROPPED A FIVEYEAR INVESTIGATION INTO ALLEGATIONS THAT OFFICIALS OF NORTHROP CORP MADE ILLEGAL PAYMENTS TO INDUCE SOUTH KOREA TO BUY THE COMPANY'S F20 FIGHTER PLANES A JUSTICE DEPARTMENT SPOKESMAN WOULDN'T COMMENT BUT ONE FORMER NORTHROP OFFICIAL WELKO GASICH SAID HIS ATTORNEY RECEIVED A LETTER FROM THE JUSTICE DEPARTMENT SAYING HE WAS NO LONGER UNDER INVESTIGATION DANIEL BOOKIN AN ATTORNEY FOR ANOTHER FORMER NORTHROP OFFICIAL JAMES DORSEY SAID HIS CLIENT'S DOCUMENTS HAD BEEN RETURNED BY THE GOVERNMENT AND ADDED IT'S A FAIR INFERENCE THAT THE INVESTIGATION IS OVER A NORTHROP SPOKESMAN SAID ALL WE CAN SAY IS JUSTICE ASKED US TO PICK UP OUR PREVIOUSLY SUBPOENAED DOCUMENTS THE NEWS WHICH FIRST SURFACED IN THE LOS ANGELES TIMES SIGNALS THE END OF A SCANDAL WHICH ROCKED THE AEROSPACE COMPANY IN 1988 THE JUSTICE DEPARTMENT LAUNCHED ITS INVESTIGATION FOCUSING ON WHETHER NORTHROP MADE 77 MILLION IN ILLEGAL PAYMENTS BETWEEN 1984 AND 1986 AMID PLANS TO FUNNEL AS MUCH AS 55 MILLION TO THE LATE PARK CHONG KYU A SECRET LOBBYIST RETAINED BY THE COMPANY INVESTIGATORS WERE TO DETERMINE IF THE FOREIGN CORRUPT PRACTICES ACT WAS VIOLATED THOMAS V JONES FORMER NORTHROP CHAIRMAN RETIRED IN 1990 JUST AS AN INTERNATIONAL CHAMBER OF COMMERCE ARBITRATOR RULED THAT A 6250000 PAYMENT PURPORTEDLY MADE TO A HOTELDEVELOPMENT COMPLEX ACTUALLY WAS INTENDED TO BE DIVERTED TO MR PARK A SOUTH KOREAN OLYMPIC OFFICIAL WITH TIES TO TOP SOUTH KOREAN GOVERNMENT OFFICIALS NORTHROP DENIED AT THE TIME THAT MR JONES'S DECISION TO RETIRE WAS RELATED TO THE RULING NORTHROP HAD MAINTAINED IT WAS DUPED INTO MAKING THE PAYMENT BY SOUTH KOREAN SWINDLERS IN A PROXY STATEMENT RELEASED IN 1989 NORTHROP DISCLOSED THAT ITS BOARD HAD CENSURED MR JONES OVER HIS MANAGEMENT STYLE IN CONNECTION WITH THE SOUTH KOREAN SCANDAL OTHER EXECUTIVES HAD THEIR REPUTATIONS DESTROYED THE COMPANY'S CHIEF FINANCIAL OFFICER TOOK EARLY RETIREMENT IN THE WAKE OF THE SCANDAL MR DORSEY A FORMER MARKETING EXECUTIVE AND DONALD FOULDS ANOTHER EXECUTIVE ALSO LEFT THE COMPANY AND MR GASICH A FORMER EXECUTIVE VICE PRESIDENT NOW 72 YEARS OLD WAS FORCED TO RETIRE FROM THE COMPANY IN 1989 AS A RESULT OF THE ALLEGATIONS AND NOW SAYS HE'S BITTER ABOUT HIS TREATMENT BY NORTHROP I WAS THERE FOR 35 YEARS AND THEY THREW ME OUT THE DOOR WITH NINE DAYS' NOTICE IT'S BEEN A LONG DIFFICULT ROAD FOR BOTH MY WIFE AND I THIS IS A HUGE WEIGHT OFF OUR SHOULDERS THE F20 FIGHTER NEVER WAS ORDERED BY SOUTH KOREA OR ANYBODY ELSE AND EVENTUALLY WAS MOTHBALLED THE COMPANY WROTE OFF A 15 BILLION INVESTMENT 9302250073 930203 REVIEW & OUTLOOK EDITORIAL THE 38TH FLOOR THE SOURCE OF THAT INTERNATIONAL PRESSURE THAT PUSHED ISRAEL INTO CAVING ON THE DEPORTEES THIS WEEK ACTUALLY HAS A REAL ADDRESS 38TH FLOOR UNITED NATIONS NYC THE 38TH FLOOR IS HOME TO SECRETARYGENERAL BOUTROS BOUTROSGHALI IT IS WHERE MR BOUTROSGHALI AN INTERNATIONAL BUREAUCRAT AND NEGOTIATOR DID MUCH OF THE WORK THAT IS NOW FORCING ISRAEL TO WELCOME BACK 100 HAMAS TERRORISTS TO REPEAT WHAT IS NOT OFTEN NOTED HAMAS IS THE GROUP THAT STATES ONE OF ITS GOALS IS FIGHTING UNTIL THE LAST JEW IN THE WORLD IS EXTERMINATED MR BOUTROSGHALI'S OFFICIAL JOB DESCRIPTION DOES NOT INCLUDE DEFINING THE NEW WORLD ORDER'S POSITION ON ISRAEL BUT A REVIEW OF HIS RECENT WORK SHOWS THAT IS WHAT HE'S BEEN TRYING TO DO HIS FIRST EFFORT WAS TO TAKE SIDES ON A MATTER BEFORE THE SECURITY COUNCIL A PLOSUPPORTED UN RESOLUTION CALLING FOR SANCTIONS AGAINST ISRAEL IN LANGUAGE REMINISCENT OF THE SANCTIONSLANGUAGE AGAINST IRAQ MEANWHILE YASSER ARAFAT WAS IN BAGHDAD YESTERDAY VISITING WITH SADDAM TESTIFYING TO THE GREATNESS OF THE IRAQI PEOPLE AND THEIR LEADER MR BOUTROSGHALI'S SECOND EFFORT WAS TO SEND A TEAM TO ISRAEL WHOSE WORK HE CHRONICLED IN AN INTERNAL REPORT TO THE SECURITY COUNCIL IN THAT REPORT THE SECRETARYGENERAL WENT BEYOND THE BOUNDS OF NEGOTIATING AND FAR INTO POLICY MAKING ISRAEL HAD NOT BEEN COOPERATING WITH DECEMBER'S SECURITY COUNCIL RESOLUTION 799 BACKED BY THE US CALLING FOR ISRAEL TO REPATRIATE THE DEPORTEES THAT IS SECURITY COUNCIL BUSINESS BUT MR BOUTROSGHALI TOOK THE CHANCE TO RECORD HIS DISMAY AT THE GRAVITY OF THE SITUATION HIS TEAM ALSO CHOSE NOT TO GO TO LEBANON WHOSE NONCOOPERATION COMPOUNDED THE REFUGEE PROBLEM THE SECRETARYGENERAL THEN WIDENED HIS ATTACK ON ISRAEL ARGUING THAT IT IS IMPORTANT TO RECALL THAT THE DEPORTATIONS CARRIED OUT BY THE GOVERNMENT OF ISRAEL ARE ONLY THE MOST RECENT IN A SERIES OF VIOLATIONS OF THE FOURTH GENEVA CONVENTION ON TREATMENT OF CIVILIANS IN WARZONES THIS LAST STATEMENT IS PURE BOUTROSGHALI IT IS A MATTER OF SOME CONTROVERSY IN FACT WHETHER THESE DEPORTATIONS VIOLATE THE FOURTH GENEVA CONVENTION MEANWHILE THE SECRETARYGENERAL IS APPARENTLY ERODING THE UNITED STATES'S PRESENCE IN THE UN SECRETARIAT OFFICE ONE OF THE FEW HOPEINSPIRING CHANGES AT THE UN SECRETARIAT IN RECENT YEARS WAS MAKING FORMER US ATTORNEY GENERAL RICHARD THORNBURGH UNDERSECRETARY FOR ADMINISTRATION AND MANAGEMENT IT WAS THE TOP USHELD JOB IN THE SECRETARIAT AND WAS KEY TO A USLED INITIATIVE TO REFORM THE BLOATED OPERATION HIGH ON MR THORNBURGH'S LIST WAS AN EFFORT TO REFORM THE SECRETARIAT'S QUOTA SYSTEM WHICH ALLOTTED JOBS BY NATIONALITY RATHER THAN MERIT AND COMPETENCE BUT MR THORNBURGH QUIT RECENTLY PERHAPS DISGUSTED WITH THE SLOW PACE OF CHANGE AND NOW SECRETARYGENERAL BOUTROSGHALI IS MOVING TO LOCK IN THE QUOTA SYSTEM BY FILLING THE ONLY IMPORTANT AMERICAN POST IN THE SECRETARIAT WITH A NORWEGIAN OR AN INDIAN SECRETARY OF STATE WARREN CHRISTOPHER MET WITH THE SECRETARYGENERAL MONDAY BUT FOGGY BOTTOM HAS SO FAR SAID NOTHING ABOUT THE JOB'S STATUS THE POSTDESERT STORM HOPES FOR THE UN CONTINUE TO FADE AS MR BOUTROSGHALI'S ORGANIZATION REVERTS TO BUSINESS AS USUAL SEE RELATED LETTER LETTERS TO THE EDITOR BOUTROSGHALI WRONGLY ACCUSED WSJ FEB 25 1993 9302030119 9302250072 930225 WHO'S NEWS CIGNA PROPERTY UNIT'S FOWLER RESIGNS POST AFTER 4 YEARS OF LOSSES PHILADELPHIA CALEB FOWLER THE PRESIDENT OF CIGNA CORP'S DOMESTIC PROPERTY AND CASUALTY UNIT RESIGNED AFTER FOUR CONSECUTIVE YEARS OF LOSSES A SUCCESSOR WILL BE NAMED LATER MR FOWLER 50 YEARS OLD HAD BEEN WITH CIGNA AND ITS PREDECESSOR INSURANCE CO OF NORTH AMERICA SINCE 1966 THIS IS DESIGNED TO CHANGE LEADERSHIP TO IMPROVE PERFORMANCE SAID A CIGNA SPOKESMAN A COMPANY STATEMENT SAID MR FOWLER QUIT TO PURSUE OTHER OPPORTUNITIES HE WAS UNAVAILABLE FOR COMMENT THE COMPANY SAID LAST YEAR WAS PARTICULARLY POOR FOR CIGNA'S PROPERTY AND CASUALTY BUSINESS BECAUSE OF LOSSES ON HURRICANE ANDREW AND ITS LONDON REINSURANCE OPERATION THE UNIT REPORTED AN OPERATING LOSS OF 374 MILLION THE COMPANY'S OTHER OPERATIONS REPORTED OPERATING PROFIT OF 785 MILLION CIGNA HAS GOT A SUCCESSFUL LIFE AND HEALTH BUSINESS AND A PROBLEMATIC PROPERTY AND CASUALTY BUSINESS SAID WESTON HICKS AN INSURANCE INDUSTRY ANALYST AT SANFORD C BERNSTEIN & CO MR FOWLER WAS NAMED PRESIDENT OF THE DOMESTIC PROPERTY AND CASUALTY OPERATION IN JANUARY 1988 AFTER BEING SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THE UNIT THE OPERATION SPECIALIZES IN WORKERS COMPENSATION AND COMMERCIAL INSURANCE SINCE 1987 THE PROPERTY AND CASUALTY INDUSTRY IN THE US HAS BEEN PLAGUED BY A PRICE WAR THAT HAS ERODED INDUSTRY PROFITS CIGNA'S PROBLEMS ARE PARTICULARLY ACUTE LAST YEAR THE COMPANY PAID 129 FOR CLAIMS AND EXPENSES FOR EVERY 1 IT COLLECTED IN PREMIUMS THE INDUSTRY AS A WHOLE PAID 115 ON CLAIMS AND EXPENSES FOR EVERY 1 OF PREMIUMS 9302250071 930211 REVIEW & OUTLOOK EDITORIAL THE PRESS AND NBC'S TROUBLES NBC'S CREDIBILITY CRASHED THIS WEEK BUT IT COULD JUST AS WELL HAVE BEEN SOME OTHER TV NETWORK LOCAL STATION NEWSPAPER OR MAGAZINE THIS DISASTER HAS BEEN WAITING TO HAPPEN FOR ALMOST 30 YEARS WHAT WE HAVE HERE IS THE ULTIMATE BREAKDOWN OF THE SYMBIOTIC RELATIONSHIP BETWEEN THE PRESS AND THE CONSUMER MOVEMENT CREATED YEARS AGO BY RALPH NADER WE DON'T DOUBT THAT SOME GOOD HAS COME OF THESE NADERINSPIRED REPORTING EFFORTS ON BEHALF OF CONSUMERS BUT AT SOME POINT THE PRESS'S ROLE WENT OFF THE TRACKS AT SOME POINT THE RELATIONSHIP BETWEEN REPORTERS AND RALPH NADER'S SOURCES ACQUIRED A NEW PARTNER AMERICA'S PLAINTIFF ATTORNEYS THESE PEOPLE SUE MANUFACTURERS ON BEHALF OF VICTIMS INCREASINGLY MANY EXPOSES CAME TO BE BASED IN LARGE PART ON MATERIAL ASSEMBLED BY THESE TRIAL LAWYERS BUT THE LAWYERS' CONTRIBUTION HAS NEVER BEEN MADE VERY CLEAR TO THE AUDIENCE OR READERS MOREOVER IT SOMEHOW BECAME STANDARD JOURNALISTIC PRACTICE NEVER TO DISCLOSE THAT THESE LAWYERS WERE WORKING FOR A CONTINGENCY FEE IF THE TRIAL LAWYERS' CASE PREVAILED THE CASE THAT WAS ESSENTIALLY THE CORE OF THE NEWS EXPOSE THEY'D GET A PERCENTAGE OF THE JURY'S AWARD TO THEIR CLIENT OFTEN AS MUCH AS ONETHIRD OVER TIME THE SIZE OF THE AWARDS GREW DRIVEN IN NO SMALL PART BY THE MEDIACONSUMING JURORS' SENSE THAT US MANUFACTURERS ROUTINELY COMMIT SHOCKING ACTS OF NEGLIGENCE NO OTHER COUNTRY IN THE WORLD IS AS PHOBIC ABOUT SAFETY AS THE UNITED STATES NOW NO OTHER COUNTRY IN THE WORLD INCURS THE PREMIUMS PAID HERE FOR LIABILITY EXPOSURE THE MEDIA HELPED BY PLAINTIFFS' TRIAL LAWYERS HAVE CONTRIBUTED TO THIS EVER ESCALATING CYCLE OF TORT LIABILITY CLAIMS WHAT IS IRONIC AT THIS POINT IS THAT MR NADER HIMSELF IS MORE FORTHCOMING ABOUT HIS TRIAL LAWYERS' CONNECTION THAN MOST CONSUMERAFFAIRS REPORTERS ARE WILLING TO BE LET US TRY TO BE CLEAR ABOUT THIS WE ARE NOT SUGGESTING THAT ALL STORIES INVOLVING LIABILITY CLAIMS ARE WITHOUT BASIS OR THAT BUSINESS IS INCAPABLE OF GROSS NEGLIGENCE THE PRESS ISSUES ARE DISCLOSURE AND BALANCE IF JOURNALISTS SUCH AS THOSE WHO PRODUCED THE NBC SEGMENT HAD BEEN MORE UPFRONT ABOUT THESE EXPOSES THEY WOULD HAVE REPORTED THEM FOR WHAT THEY ARE ESSENTIALLY DISPUTES BETWEEN PLAINTIFFS' LAWYERS WORKING ON A CONTINGENCYFEE BASIS AND MANUFACTURERS' LAWYERS BUT THERE ARE INCENTIVES AGAINST SUCH STRAIGHTFORWARD REPORTING IF A REPORTER TURNED IN ONE SET OF LAWYERS' ARGUMENTS ARRAYED AGAINST ANOTHER SET OF LAWYERS' ARGUMENTS YOU WOULD END UP WITH A FAIRLY DRY LEGAL STORY WHICH WOULD RUN INSIDE THE PAPER AND NOT AT ALL ON TV INSTEAD TO MAKE IT MORE OF A STORY THAT ONE CAN SELL TO READERS OR VIEWERS OR EDITORS THE CONTINGENCYDRIVEN LAWYERS' ROLE IS DROPPED OR GREATLY MINIMIZED AND THE PERSONAL DRAMA OF THE VICTIMS' PLIGHT IS PUSHED UPFRONT TO THE AVERAGE VIEWER OR READER WHAT APPEARS TO BE THE STORY'S FACTS WUCK'S INVESTIGATIVE ACTION TEAM HAS LEARNED ARE MERELY THE ALLEGATIONS OF ONE PARTY TO A LAWSUIT MOST SUCH STORIES ARE HUGELY OVERLOADED IN THIS DIRECTION HENCE THEIR DRAMATIC IMPACT BALANCE OF ITS NATURE IS OFTEN LESS DRAMATIC IT DOESN'T PRODUCE RATINGS OR AWARDS THE DRAMATIC POSSIBILITIES OF THESE UNBALANCED STORIES SPAWNED A GENERATION OF CONSUMER REPORTERS THE MOST EGREGIOUS OF THEM APPEARING ON TV WHICH LIVES OR DIES BY ONSCREEN IMAGES SUCH AS FIERY TRUCKS THE PHENOMENON HAS ENDURED PARTLY BECAUSE SOME REPORTERS THINK THEY ARE DOING GOOD WORKS BUT ALSO FOR COMMERCIAL REASONS TV STATIONS AND LOCAL PAPERS WERE BATTLING TO CONVINCE THEIR MARKETS THAT THEY WERE ON YOUR SIDE THE LIST IS ENDLESS OF FAMOUS EXPOSES WHICH IN FACT HAD LAWSUITS ATTACHED TO THEM BEYOND EXPLODING GAS TANKS WE'VE HAD THE DISEASES AND DESTRUCTION CAUSED BY NUCLEAR POWER PLANTS TOXIC WASTE AT LOVE CANAL FOLLOWED BY A SERIES OF COPYCAT LAWSUITS THE DIOXIN AT TIMES BEACH BENDECTIN FOR MORNING SICKNESS PROZAC BREAST IMPLANTS WHOOPING COUGH VACCINE HIGHTENSION WIRES CHILDREN'S PAJAMAS COMPUTER SCREENS RUNAWAY AUDIS STEPLADDERS LAWN MOWERS ASPIRIN BOTTLES NUCLEAR WEAPONS TESTS CHRISTMAS TOYS CONTRACEPTIVE DEVICES AND ON AND ON AWASH IN FEAR AND EXPOSES THE US NOW HAS A TRIAL LAWYERS' INDUSTRY WITH PROFESSIONAL PLAINTIFFS' WITNESSES LIKE BRUCE ENZ WHO WAS REVEALED THIS WEEK AS A PARTY TO THE NBC CRASH SEGMENT CLAIMING AT THE DIRECTION OF THE NETWORK'S LAWYERS THAT HE WAS A JOURNALIST NBC'S FICTION IS THE ABSURD APOGEE OF THIS FORMAT'S BALANCE AND DISCLOSURE PROBLEMS THE NBC AFFAIR IS REALLY JUST THE TIP OF AN ICEBERG PROBABLY MOST SUCH REPORTING IS LESS DISHONEST THAN THIS WE HOPE BUT HOW MUCH OF IT IS GIVING PEOPLE THE FULL STORY IT IS HARD TO KNOW WHETHER PEOPLE WILL CONCLUDE FROM THE NBC FIASCO THAT SIMILAR EFFORTS BY OTHERS ALSO HAVE A CREDIBILITY PROBLEM MORE DISCLOSURE OF SOURCES WOULD HELP BUT ON THE EVIDENCE OF NBC'S TROUBLES A BETTER COURSE MIGHT BE TO FINALLY TAKE UP THE WORLD OF THE PLAINTIFFS' LAWYERS AS A LEGITIMATE NEWS STORY SEE RELATED LETTERS LETTERS TO THE EDITOR JOURNALISTS FAUX WSJ FEB 25 1993 9302110047 9302250070 930225 BUSINESS BRIEF BELDING HEMINWAY CO FIRM AGREES TO BE ACQUIRED BY UNIT OF NOEL GROUP INC BELDING HEMINWAY CO SAID IT AGREED IN PRINCIPLE TO BE ACQUIRED BY A UNIT OF NOEL GROUP INC FOR 3450 A SHARE OR A TOTAL OF 67 MILLION IN A STATEMENT BELDING HEMINWAY SAID IN NEW YORK THAT THE PROPOSED MERGER IS SUBJECT TO NOEL'S DUEDILIGENCE INVESTIGATION OF BELDING AS WELL AS EXECUTION OF A DEFINITIVE MERGER PACT THAT AGREEMENT WOULD BE SUBJECT TO NOEL GROUP'S OBTAINING FINANCING FOR THE MERGER NOEL A HOLDING COMPANY WITH INTERESTS IN VARIOUS INDUSTRIES LAST MONTH HAD PROPOSED AN ACQUISITION OF BELDING AT 35 A SHARE BELDING A MAKER OF FABRICS AND THREADS HAS ABOUT 1950000 SHARES OUTSTANDING BELDING SHARES WERE UNCHANGED YESTERDAY AT 3050 IN NEW YORK STOCK EXCHANGE TRADING 9302250069 930225 BUSINESS BRIEF NOVELL INC NET ROSE 36 ON FIRM SALES DURING FISCAL FIRST QUARTER NOVELL INC PROVO UTAH POSTED A 36 JUMP IN FISCAL FIRSTQUARTER NET INCOME ON STRONG SALES OF ITS NETWORKING SOFTWARE PRODUCTS THE SOFTWARE COMPANY POSTED NET OF 709 MILLION OR 23 CENTS A SHARE FOR THE QUARTER ENDED JAN 30 COMPARED WITH 522 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE GREW 27 TO 2602 MILLION FROM 205 MILLION EARNINGS WERE ON PAR WITH ANALYSTS ESTIMATES THE COMPANY HAS BEEN CASHING IN ON A TREND OF NETWORKING DISPARATE COMPUTERS TOGETHER BY DESIGNING AND SELLING SOFTWARE REQUIRED FOR SUCH OPERATIONS ON THAT STRENGTH NOVELL HAS BECOME THE SECOND LARGEST SUPPLIER OF PERSONAL COMPUTER SOFTWARE AFTER MICROSOFT CORP DOMESTIC AND INTERNATIONAL SALES BOTH CONTRIBUTE EQUALLY TO NOVELL'S TOTAL REVENUE THE COMPANY SAID WITH US SALES UP 28 AND INTERNATIONAL SALES UP 26 COMPARED WITH THE YEARAGO QUARTER 9302250068 930225 BUSINESS BRIEF FRESENIUS USA INC ACQUISITION OF A BUSINESS OF ABBOTT LABS IS CLOSED FRESENIUS USA INC WALNUT CREEK CALIF SAID IT COMPLETED ITS ACQUISITION OF ABBOTT LABORATORIES' RENAL DIALYSIS BUSINESS IN A TRANSACTION VAULED AT MORE THAN 31 MILLION FRESENIUS SAID THE ACQUISITION WILL NEARLY DOUBLE ITS REVENUE FROM SALES OF PERITONEAL DIALYSIS PRODUCTS PERITONEAL DIALYSIS IS A SPECIFIC KIND OF KIDNEY DIALYSIS TREATMENT USED TO TREAT AMBULATORY PATIENTS AND OTHERS A COMPANY SPOKESMAN REFUSED TO ESTIMATE THE AMOUNT OF THE INCREASED REVENUE EXPECTED UNDER THE TERMS OF THE ACQUISITION FRESENIUS PAID ABBOTT 31 MILLION AT THE DEAL'S CLOSING AND WILL PAY THE ABBOTT PARK ILL COMPANY AN ADDITIONAL 25 MILLION ANNUALLY OVER FIVE YEARS IN AMERICAN STOCK EXCHANGE TRADING FRESENIUS CLOSED AT 650 UP 25 CENTS 9302250067 930225 BUSINESS BRIEF CIRCUIT SYSTEMS INC FIRM PLANS TO TAKE A CHARGE OF 760000 IN THIRD PERIOD CIRCUIT SYSTEMS INC SAID IT WILL WRITE OFF ITS 19 INVESTMENT IN AMERICAN PRO LATEX INC AND TAKE A 760000 NONRECURRING CHARGE AGAINST FISCAL THIRDQUARTER EARNINGS AMERICAN PRO LATEX AN UNCONSOLIDATED AFFILIATE MAKES AND SELLS SURGICAL AND EXAMINATION GLOVES MANAGEMENT SAID THE CHARGE EQUAL TO ABOUT NINE CENTS A SHARE WOULD HAVE A SUBSTANTIAL EFFECT ON RESULTS FOR THE PERIOD ENDED JAN 31 IN THE YEAREARLIER PERIOD CIRCUIT SYSTEMS EARNED 621000 OR 12 CENTS A SHARE THE ELK GROVE VILLAGE ILL COMPANY SAID NINEMONTH EARNINGS WOULD EXCEED THOSE REPORTED FOR ALL OF FISCAL 1992 AND PREDICTED THAT EARNINGS FOR THE CURRENT QUARTER WILL GROW AT A VIGOROUS RATE 9302250066 930225 POLITICS & POLICY CLINTON PLAN TO BOOST BANK LENDING EXTENDS BEYOND SMALLBUSINESS LOANS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S EFFORT TO EASE THE CREDIT CRUNCH ALTHOUGH AIMED PRIMARILY AT SMALLBUSINESS LENDING INCLUDES MEASURES THAT WILL HELP BANKS BOOST LENDING TO A RANGE OF BORROWERS ELEMENTS OF THE EVOLVING PROGRAM COULD REDUCE THE NUMBER OF LOANS THAT ARE CLASSIFIED AS TROUBLED FOR LARGELY TECHNICAL REASONS MAKE IT EASIER TO RETURN LOANS ONCE CLASSIFIED AS TROUBLED TO INCOMEEARNING STATUS AND EVENTUALLY ESTABLISH A SECONDARY MARKET FOR COMMERCIAL LOANS THIS WOULD ALLOW BANKS TO SELL THEIR BUSINESS LOANS JUST AS THEY SELL MORTGAGES OR CREDIT CARD DEBTS HOWEVER REGULATORS WARN THAT THERE ARE MANY OBSTACLES TO DESIGNING A LARGE SECONDARY BUSINESSLOAN MARKET THE WHITE HOUSE HOPES TO ANNOUNCE A LENDING PROGRAM SOON PERHAPS BY MONDAY EVEN THOUGH BANK REGULATORS WOULD LIKE MORE TIME TO REFINE THEIR INITIATIVES ONE OFFICIAL SAID THE OUTLINE OF THE PROGRAM IS FALLING INTO PLACE A KEY ELEMENT OF THE PROGRAM WOULD FREE WELLCAPITALIZED BANKS FROM CURRENT RULES THAT REQUIRE THEM TO APPLY A LONG LIST OF LENDING CRITERIA AND DOCUMENTATION REQUIREMENTS TO EVERY SMALLBUSINESS LOAN THEY MAKE INSTEAD THEY WOULD BE ALLOWED TO SET CLEAR STANDARDS FOR MAKING SMALLBUSINESS LOANS INSTEAD OF REVIEWING EVERY LOAN BANK EXAMINERS WOULD JUDGE THE OVERALL PERFORMANCE OF THE BANK'S PORTFOLIO JUST AS THEY LOOK AT PORTFOLIOS OF CONSUMER LOANS THIS WOULD GIVE BANKS MORE LEEWAY TO MAKE SOCALLED CHARACTER LOANS THAT ARE BASED ON JUDGMENT RATHER THAN STRICT ADHERENCE TO A FORMULA ANOTHER MEASURE WOULD EASE A RULE THAT OFTEN REQUIRES BANKS TO GET AN APPRAISAL OF REAL ESTATE PUT UP AS COLLATERAL FOR SMALLBUSINESS LOANS THIS WOULD REDUCE THE TIME AND COST OF LENDING TO SMALL BUSINESS A CHANGE THAT EXTENDS BEYOND SMALLBUSINESS LOANS WOULD PROVIDE NEW GUIDANCE ON THE TREATMENT OF OTHER ASSETS SPECIALLY MENTIONED THESE ARE LOANS THAT EXAMINERS HAVE RAISED CONCERNS ABOUT BUT HAVEN'T YET CLASSIFIED AS TROUBLED THERE IS ANECDOTAL EVIDENCE THAT SOME EXAMINERS ARE ASKING FOR RESERVES OF THE TYPE THEY REQUIRE FOR WEAKER CLASSIFIED CREDITS ONE REGULATOR SAID THE GUIDANCE WOULD MAKE IT CLEAR THAT EXAMINERS SHOULDN'T REQUIRE BANKS TO HOLD RESERVES AGAINST THESE SPECIALLY MENTIONED CREDITS TWO OTHER EXPECTED COMPONENTS THAT EXTEND BEYOND SMALLBUSINESS LENDING WOULD DEAL WITH BANK OFFICIALS' LIABILITY AND APPEALS OF BANK EXAMINATIONS THE TREASURY HAS ASKED REGULATORS TO DESIGN A PROCESS THAT MAKES IT EASIER FOR BANKS TO APPEAL EXAMINATION REPORTS THEY CONSIDER UNFAIR THE NEW PROCEDURES MIGHT ALSO GENERATE INFORMATION FROM BANKS THAT WOULD ALLOW SUPERVISORS TO GAUGE THE UNIFORMITY OF BANK EXAMINATIONS IN ADDITION THE ADMINISTRATION WANTS REGULATORS TO DRAFT NEW GUIDANCE OUTLINING HOW BANK OFFICERS AND DIRECTORS CAN PROTECT THEMSELVES FROM SUITS AND MONETARY PENALTIES FOR NEGLIGENCE THIS TASK MAY BE DIFFICULT THE BUSH ADMINISTRATION TRIED AND FAILED TO COME UP WITH HELPFUL STANDARDS ALTHOUGH THE WHITE HOUSE IS PUSHING BANKING AGENCIES TO MOVE QUICKLY REGULATORS STRESS THAT FEW IF ANY MEASURES WOULD TAKE EFFECT WHEN THEY'RE ANNOUNCED IT MAY TAKE MONTHS TO WORK OUT THE LEGAL DETAILS AND TO COORDINATE THE POLICIES OF THE FOUR BANKING REGULATORSTHE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION THE FED HAS BEEN WORKING ON THE PROGRAM THE LONGEST THERE ARE TWO POSSIBLE PROPOSALS THAT RAISE THORNY LEGAL OR ACCOUNTING ISSUES THE FIRST IS A DIRECTIVE THAT WOULD SET CLEARER PROCEDURES FOR RETURNING NONPERFORMING LOANS TO A HEALTHY STATUS THAT GENERATE EARNINGS FOR THE BANK A REDUCTION IN NONPERFORMING LOANS MAKES IT EASIER FOR A BANK TO EXTEND FRESH CREDIT THE OTHER INVOLVES THE FIRST STEPS TOWARD CREATING A SECONDARY MARKET FOR COMMERCIAL LOANS DURING THE CAMPAIGN MR CLINTON SAID THAT A SECONDARY MARKET WOULD ENABLE BANKS TO GENERATE NEW FUNDS FOR SMALLBUSINESS LENDING HOWEVER ESTABLISHING SUCH A MARKET WOULD RAISE DAUNTING TECHNICAL AND LEGAL PROBLEMS UNLIKE RESIDENTIAL MORTGAGES CREDIT CARD RECEIVABLES AND STUDENT LOANS WHICH BANKS REGULARLY SELL AS COLLATERAL FOR SECURITIES BUSINESS LOANS ARE HETEROGENEOUS AND MORE DIFFICULT TO PACKAGE FOR SALE REGULATORS ARE BEGINNING TO LOOK AT ADMINISTRATIVE CHANGES THAT COULD LAY THE FOUNDATION FOR A SECONDARY MARKET SEN ALFONSE D'AMATO R NY HAS INTRODUCED A BILL THAT WOULD CLEAR AWAY LEGAL AND ACCOUNTING BARRIERS TO THE ESTABLISHMENT OF A SECONDARY MARKET IN SMALLBUSINESS LOANS WITHOUT ENDORSING ALL THE DETAILS FED CHAIRMAN ALAN GREENSPAN HAS SAID HE FAVORS THE D'AMATO APPROACH OVER A COMPETING PROPOSAL BY REP JOHN LAFALCE D NY THAT WOULD CREATE A GOVERNMENTSPONSORED AGENCY TO SET UP A SECONDARY MARKET FOR SMALLBUSINESS LOANS 9302250065 930225 LAW LEGAL BEAT RULINGS CLASH OVER COLORS IN TRADEMARKS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL CAN AN ORDINARY COLOR SAY BEIGE BE MONOPOLIZED BY A SINGLE COMPANY IN AN INDUSTRY A FEDERAL APPEALS COURT SAYS YES AND IS ALLOWING MASTER DISTRIBUTORS INC MANCHESTER NH TO SUE A COMPETITOR FOR TRADEMARK INFRINGEMENT SIMPLY BECAUSE THE RIVAL ALSO MAKES AN AQUACOLORED PHOTOSPLICING TAPE THE RULING LAST WEEK BY A THREEJUDGE PANEL OF THE EIGHTH US CIRCUIT COURT OF APPEALS IN ST LOUIS HEIGHTENS THE TURMOIL IN AN AREA OF LAW THAT HAS CONFOUNDED COMPANIES SINCE THE MID1980S ONLY TWO YEARS AGO A DIFFERENT FEDERAL APPEALS COURT RULED THAT COLORS ALONE DON'T MERIT TRADEMARK PROTECTION IN THAT CASE THE SEVENTH US CIRCUIT COURT OF APPEALS IN CHICAGO SAID NUTRASWEET CO A DEERFIELD ILL UNIT OF MONSANTO CO COULDN'T USE TRADEMARK LAW TO PROTECT THE BLUE OF ITS SINGLESERVING PACKET THE US SUPREME COURT DECLINED TO HEAR NUTRASWEET'S APPEAL THE CONFLICTING RULINGS MEAN THAT A PRODUCT COULD VIOLATE TRADEMARK LAW BY USING ANOTHER COMPANY'S EXCLUSIVE COLOR IN ARKANSAS IOWA MINNESOTA MISSOURI NEBRASKA NORTH DAKOTA AND SOUTH DAKOTA ALL PART OF THE EIGHTH CIRCUIT BUT BE PERFECTLY LEGAL IN ILLINOIS INDIANA AND WISCONSIN WHICH BELONG TO THE SEVENTH CIRCUIT WE AS MANUFACTURERS ARE LEFT QUITE BEWILDERED SAID THOMAS J NICOSKI PRESIDENT OF PAKOR INC MAPLE GROVE MINN WHICH MADE THE RIVAL SPLICING TAPE BLUE IS PAKOR'S COMPANY COLOR MR NICOSKI ADDED HE DISAGREED WITH THE COURT'S ASSESSMENT THAT PAKOR'S TAPE LIKE THAT OF ITS COMPETITOR IS AQUAMARINE ON ONE SIDE OF THE LEGAL COLOR WAR ARE BUSINESSES SUCH AS PAKOR THAT SAY IT'S UNREASONABLE TO ALLOW ONE COMPANY IN ESSENCE TO OWN A COLOR ON THE OTHER SIDE ARE MARKETERS THAT SAY THEY USE COLOR AS A DISTINCTIVE AND KEY PROMOTIONAL TOOL YOU TRY TO GIVE THE CUSTOMER SOMETHING THEY CAN HANG THEIR HAT ON SAID ROBERT E CANNON VICE PRESIDENT OF SALES FOR CHANNELLOCK INC HE SAID THE COMPANY PUTS BLUE GRIPS ON ALL ITS TOOLS BECAUSE OTHER IMPORTANT FEATURES SUCH AS THE KIND OF STEEL USED AREN'T READILY VISIBLE A FEDERAL DISTRICT COURT IN PITTSBURGH RULED LAST YEAR THAT CHANNELLOCK OF MEADVILLE PENN COULD ARGUE THAT THE GRIPS DESERVE TRADEMARK PROTECTION THE CASE WAS SETTLED BEFORE TRIAL THE RECENT APPEALSCOURT RULINGS APPLY ONLY IN SITUATIONS IN WHICH COLOR ISN'T AN INTEGRAL PART OF THE PRODUCT PHOTOSPLICING TAPE FOR EXAMPLE DOESN'T HAVE TO BE ANY PARTICULAR COLOR THE ISSUE IS ALSO SEPARATE FROM THAT OF LOGO COLORS WHICH ARE PROTECTED WHEN USED IN CONNECTION WITH A SPECIFIC SYMBOL OR DESIGN SUCH AS THE GOLDEN ARCHES OF MCDONALD'S CORP THE COURT EMPHASIZED THAT COMPANIES CAN GET TRADEMARK PROTECTION ONLY FOR SPECIFIC HUES OF COLOR SUCH AS AQUA RATHER THAN FOR BROADER CATEGORIES SUCH AS ALL SHADES OF BLUE OTHER COURTS THAT HAVE DENIED SUCH PROTECTION HAVE ARGUED THAT IF SUCH TRADEMARKS WERE ALLOWED MANUFACTURERS WOULD EVENTUALLY RUN OUT OF COLORS TO USE BUT THE EIGHTH CIRCUIT SAID SUCH A SCENARIO IS UNLIKELY BECAUSE A COMPANY CAN'T LAY CLAIM TO A COLOR UNLESS THEIR PRODUCT MEETS OTHER TRADEMARKLAW REQUIREMENTS SUCH AS STRONG CUSTOMER IDENTIFICATION WITH A SINGLE HUE THE COURT SENT THE BLUE MAX CASE BACK TO A LOWER COURT TO DETERMINE WHETHER MASTER DISTRIBUTORS MEETS SUCH REQUIREMENTS UNTIL THOSE REQUIREMENTS HAVE BEEN ESTABLISHED IN EVERY DISTINGUISHABLE SHADE OF COLOR AND IN NO COLOR AT ALL A HIGHLY IMPROBABLE SITUATION THERE WILL ALWAYS BE AN OPTION AVAILABLE TO A NEW MARKET ENTRANT THE COURT SAID THE NATIONAL BUREAU OF STANDARDS LISTS 267 DISTINCTIVE COLORS THE COURT ADDED THE APPEALS COURT LEANED HEAVILY ON A LANDMARK 1985 DECISION BY A SPECIAL COURT IN WASHINGTON THAT HEARS APPEALS OF PATENT AND TRADEMARKREGISTRATION CASES IN THAT GROUNDBREAKING RULING THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT SAID OWENSCORNING FIBERGLAS CORP TOLEDO OHIO COULD REGISTER THE COLOR PINK AS A TRADEMARK THAT COURT WHOSE DECISION WASN'T BINDING ON OTHER FEDERAL APPEALS COURTS SAID OWENSCORNING HAD PROVED THAT WHEN CUSTOMERS THINK OF PINK INSULATION THEY THINK OF OWENSCORNING THE COMPANY HAD BUILT UP THAT ASSOCIATION IN ITS MARKETING INCLUDING ADVERTISEMENTS FEATURING THE PINK PANTHER CARTOON CHARACTER SINCE THEN A FEW JUDGES HAVE FOLLOWED THE LEAD OF THE OWENSCORNING COURT BUT MOST HAVE SAID THAT COLORS DON'T DESERVE TRADEMARK PROTECTION SAID ETHAN HORWITZ SENIOR PARTNER IN DARBY & DARBY A NEW YORK LAW FIRM SPECIALIZING IN PATENT AND TRADEMARK LAW IT'S BEEN A STANDARD OF LAW FOR SO MANY YEARS THAT COURTS ARE RELUCTANT TO CHANGE IT MR HORWITZ SAID CLASHES BETWEEN APPEALS COURTS TYPICALLY ARE SETTLED BY THE US SUPREME COURT PAKOR HASN'T DECIDED WHETHER TO SEEK A HIGH COURT REVIEW OF ITS CASE MR NICOSKI SAID MEANWHILE PACKAGING DESIGNERS SHOULD HEDGE THEIR BETS BY STICKING TO COMBINATIONS OF COLORS WHICH COURTS HAVE GENERALLY DEEMED TO DESERVE TRADEMARK PROTECTION SAID MICHAEL F CLAYTON A TRADEMARK LAWYER FOR PHILADELPHIABASED MORGAN LEWIS & BOCKIUS IF A COMPANY INSISTS ON SELLING A PRODUCT IN A SINGLEHUED PACKAGE THAT IS THE SAME COLOR AS A RIVAL'S BE CAREFUL WHERE YOU MARKET HE SAID THE AMERICAN ARBITRATION ASSOCIATION ANNOUNCED A PROGRAM TO HELP BUSINESSES RESOLVE COMPLEX CASES OUT OF COURT THE NONPROFIT GROUP HAS FORMED 36 REGIONAL PANELS OF ARBITRATORS INCLUDING SOME WELLKNOWN BUSINESS EXECUTIVES LAWYERS AND FORMER JUDGES PRIMARILY TO HEAR CASES INVOLVING 1 MILLION OR MORE THE ORGANIZATION ALSO HAS NEW PROCEDURES FOR THE ARBITRATION OF BIG CASES FOR EXAMPLE ARBITRATORS WILL BE ABLE TO ISSUE WRITTEN OPINIONS IF THE PARTIES WANT THEM AND PREARBITRATION FACTFINDING WILL BE EXPANDED TO FIT THE NEEDS OF LARGE CASES PARTIES WILL ALSO BE OFFERED THE OPPORTUNITY TO MEDIATE THEIR CASES MEDIATION UNLIKE ARBITRATION ISN'T BINDING MARK A BUCKSTEIN THE ORGANIZATION'S EXECUTIVE VICE PRESIDENT CALLED THE PROGRAM A WAY WE CAN CUT A LOT OF LEGAL FEES OUT OF THE BUDGETS OF AMERICAN CORPORATIONS AND MAKE THEM MORE COMPETITIVE THE AAA IS FACING INCREASING COMPETITION FROM FORPROFIT FIRMS THAT SPECIALIZE IN MEDIATION JOHN K TROTTER CHIEF EXECUTIVE OFFICER OF JUDICIAL ARBITRATION & MEDIATION SERVICES INC CALLED THE AAA'S NEW PROGRAM A MARKETING EFFORT THE AAA HAD THE FIELD TO THEMSELVES UNTIL A FEW YEARS AGO HE SAID THEY ARE MUCH MORE ANSWERABLE TO MARKET FORCES WHICH IS A POSITIVE DEVELOPMENT AMONG THE AAA'S BIGCASE ARBITRATION PANELISTS ARE FORMER US ATTORNEY GENERAL GRIFFIN B BELL VICTOR KIAM CHIEF EXECUTIVE OFFICER OF REMINGTON PRODUCTS CO YALE SCHOOL OF LAW PROF GEOFFREY C HAZZARD AND SANFORD M LITVACK WALT DISNEY CO EXECUTIVE VICE PRESIDENT MILTON WEINGER THE FORMER OPPENHEIMER & CO BROKER WHO PLEADED GUILTY TO PERJURY IN CONNECTION WITH THE INVESTIGATION OF AN INSIDER TRADING SCHEME WAS SENTENCED TO 10 MONTHS IN JAIL WHEN A GUY IN YOUR POSITION COMMITS A CRIME THAT UNDERMINES THE FINANCIAL AND JUSTICE SYSTEMS SOCIETY DEMANDS A SENTENCE OF GENERAL DETERRENCE US DISTRICT COURT JUDGE KEVIN T DUFFY TOLD MR WEINGER AT THE SENTENCING MR WEINGER WHO WAS ONE OF OPPENHEIMER'S TOP BROKERS ADMITTED LYING TO SECURITIES AND EXCHANGE COMMISSION INVESTIGATORS LOOKING INTO AN INSIDER TRADING RING THAT INVOLVED SOCIALLY PROMINENT INVESTORS TRADING TIPS POOLSIDE IN SOUTHAMPTON NY MR WEINGER 62 YEARS OLD WHO HAD ASKED TO BE EXCUSED FROM SERVING PRISON TIME APPEARED DUMBSTRUCK BY THE SENTENCE AND HAD TO BE LED FROM THE COURTROOM BY HIS LAWYER AND FRIENDS HE WAS ALSO SENTENCED TO TWO YEARS OF PROBATION AFTER HIS RELEASE THE INSIDER RING WAS ALLEGEDLY ORCHESTRATED BY EDWARD DOWNE A FORMER DIRECTOR OF BEAR STEARNS & CO WHO MARRIED AUTOMOBILE HEIRESS CHARLOTTE FORD MR WEINGER ADMITTED TO CONCEALING MR DOWNE'S CONTROL OVER AN ACCOUNT OPENED IN THE NAME OF MR DOWNE'S SON IN WHICH INSIDER TRADING ALLEGEDLY OCCURED MR DOWNE WHO WAS ONE OF MR WEINGER'S BIGGEST CUSTOMERS PLEADED GUILTY LAST YEAR TO TWO FELONIES HE HAS NOT YET BEEN SENTENCED ACCORDING TO COURT PAPERS MR DOWNE IS TESTIFYING BEFORE A FEDERAL GRAND JURY CONSIDERING ADDITIONAL CRIMINAL INDICTMENTS IN THE CASE BCCI BOND ACTING SUPREME COURT JUSTICE JOHN AK BRADLEY A NEW YORK STATE CRIMINAL JUDGE SAID WASHINGTON LAWYER ROBERT ALTMAN MUST SIGN A 500000 BOND TO GUARANTEE HIS APPEARANCE AT THE MARCH 15 START OF HIS TRIAL ON BRIBERY AND FRAUD CHARGES CONNECTED TO THE BCCI HOLDINGS LUXEMBOURG SA SCANDAL MR ALTMAN WHO WAS PRESIDENT OF FIRST AMERICAN BANKSHARES INC WHICH WAS ALLEGEDLY SECRETLY OWNED BY BCCI WON'T HAVE TO ACTUALLY PUT UP THE MONEY UNLESS HE FAILS TO SHOW UP FOR HIS TRIAL JUDGE BRADLEY SAID HE WAS CONCERNED THAT MR ALTMAN'S LAWYERS ARE ATTEMPTING TO MANEUVER THE CASE OUT OF NEW YORK TO FEDERAL COURT IN WASHINGTON WHERE MR ALTMAN HAS ALSO BEEN INDICTED HIS LAWYERS DENY THAT CHARGE ELLEN JOAN POLLOCK CONTRIBUTED TO THIS ARTICLE THE MAKERS OF THE FOLLOWING ITEMS HAVE TRIED TO TRADEMARK THEIR PRODUCT'S COLOR ARGUING IN COURT THAT THEIR PRODUCTS ARE SO STRONGLY ASSOCIATED WITH A SINGLE COLOR THAT NO COMPETITOR SHOULD BE ALLOWED TO USE IT THE LAWSUITS 9302250064 930225 ASPIN ORDERS RESPONSE TO REPORT ON MCDONNELL WASHINGTON SECRETARY OF DEFENSE LES ASPIN ORDERED THE AIR FORCE TO RESPOND TO CHARGES THAT ITS OFFICIALS ACTED IMPROPERLY IN HANDLING MCDONNELL DOUGLAS CORP'S CONTRACT TO BUILD THE C17 MILITARY CARGO JET MR ASPIN ALSO TOLD THE AIR FORCE IMMEDIATELY TO INVESTIGATE WHETHER ONE PAYMENT IT MADE TO MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR VIOLATED FEDERAL LAW A REPORT ISSUED LAST MONTH BY THE PENTAGON'S INSPECTOR GENERAL CONCLUDED AMONG OTHER THINGS THAT THE MANNER IN WHICH THE AIR FORCE MADE AN 812 MILLION PAYMENT IN OCTOBER 1990 RESULTED IN POTENTIAL VIOLATIONS OF THE FEDERAL ANTIDEFICIENCY ACT WHICH PROHIBITS GOVERNMENT AGENCIES FROM SPENDING MORE MONEY FOR A GIVEN PURPOSE THAN HAS BEEN APPROPRIATED BY CONGRESS I AM TROUBLED BY THE ALLEGATIONS FINDINGS AND RECOMMENDATIONS CONTAINED IN THE INSPECTOR GENERAL'S REPORT MR ASPIN STATED IN A MEMORANDUM SENT FRIDAY TO MICHAEL DONLEY THE ACTING AIR FORCE SECRETARY HE GAVE THE SERVICE 60 DAYS TO RESPOND TO THE INSPECTOR GENERAL'S CHARGES 9302250063 930225 BUSINESS BRIEF CONTINENTAL AIRLINES REORGANIZATION PLAN WINS APPROVAL FROM CREDITORS CONTINENTAL AIRLINES HOUSTON SAID ITS CREDITORS APPROVED THE COMPANY'S REORGANIZATION PLAN MOVING THE AIRLINE A STEP CLOSER TO EMERGING FROM CHAPTER 11 BANKRUPTCY PROTECTION UNDER THE PLAN CONTINENTAL WILL RECEIVE 450 MILLION FROM AN INVESTMENT GROUP MADE UP OF AIR CANADA AND AIR PARTNERS LP WHICH WOULD ASSUME 55 OF CONTINENTAL'S EQUITY AND 65 OF ITS VOTING STOCK CONTINENTAL'S UNSECURED CREDITORS WHO PREVIOUSLY ANNOUNCED THEIR SUPPORT FOR THE PLAN WOULD INITIALLY RECEIVE 356 OF THE REORGANIZED AIRLINE'S EQUITY AND 33 OF THE VOTING STOCK THE REMAINING 94 OF EQUITY IS TO BE DISTRIBUTED AT A LATER DATE PROBABLY TO MANAGEMENT CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC WILL PRESENT ITS REORGANIZATION PLAN IN US BANKRUPTCY COURT FOR HEARINGS BEGINNING MARCH 16 THE CARRIER FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 BANKRUPTCY LAW IN DECEMBER 1990 9302250062 930225 MARKET WATCHER ARCANE WORLD OF BONDS IS GUIDE AND BEACON TO A POPULIST PRESIDENT RALLY IS SEEN AS ENDORSEMENT OF POLICY AND IT HELPS ECONOMY AS RATES FALL BUT IT COULD BE FICKLE FRIEND BY DAVID WESSEL AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL BILL CLINTON DESPITE HIS PENCHANT FOR POPULIST SOAKTHERICH RHETORIC HAS BEEN BETTING ON THE BOND MARKET SINCE ELECTION DAY BUT HE NEVER DREAMED IT WOULD PAY OFF LIKE THIS THE MARKET BEGAN TO RALLY SHORTLY AFTER MR CLINTON'S ELECTION VICTORY AND EXPLODED AFTER HIS SPEECH TO CONGRESS LAST WEEK THAT SURGE HAS DRIVEN LONGTERM INTEREST RATES INCLUDING THOSE ON HOME MORTGAGES TO THE LOWEST LEVELS IN 20 YEARS MR CLINTON AND HIS ECONOMIC ADVISERS THOUGH STUNNED BY THE DEGREE OF THE MARKET'S ENTHUSIASM ARE MOVING QUICKLY TO PAINT THE RALLY AS WALL STREET'S ENDORSEMENT OF THE PRESIDENT'S ECONOMIC STRATEGY THAT INVESTMENT MARKET THEY'RE A TOUGH CROWD SAYS TREASURY SECRETARY LLOYD BENTSEN IS THIS A CREDIBLE EFFORT IS THE ADMINISTRATION GOING TO HANG IN THERE PUSHING IT THEY HAVE SO JUDGED IT BUT THE BOND RALLY ISN'T NECESSARILY A ROUND OF APPLAUSE FOR PRESIDENT CLINTON'S PROGRAM IT COULD BE JUST THE OPPOSITE SOME BOND MARKET ANALYSTS SAY MR CLINTON'S TAX INCREASES RISK THROWING THE ECONOMY BACK INTO RECESSION UNDER THAT SCENARIO WEAKENED DEMAND FOR BORROWED MONEY WOULD TEND TO LOWER INTEREST RATESAND THUS BOLSTER BOND PRICES IN ADDITION THE BOND MARKET CAN BE FICKLE AND UNPREDICTABLE YESTERDAY IT GAVE UP SOME OF ITS RECENT GAINS WITH YIELDS ON 30YEAR TREASURY BONDS RISING TO 688 AND PRICES FALLING ACCORDINGLY NONETHELESS THE PRESIDENT AND HIS ECONOMIC TEAM ARE FIXATED ON AND GENERALLY FLATTERED BY THE BOND MARKET'S POSTELECTION PERFORMANCE NATIONAL ECONOMIC ADVISER ROBERT RUBIN BRIEFS MR CLINTON ON THE MARKET NEARLY EVERY MORNING AND THE PRESIDENT REFERS TO IT OFTEN IN HIS SPEECHES JUST SINCE THE ELECTION SINCE WE MADE IT CLEAR WE WERE GOING TO TRY TO BRING THE DEFICIT DOWN LONGTERM INTEREST RATES HAVE DROPPED THE PRESIDENT SAID THIS WEEK IN CALIFORNIA ONE REASON FOR THE FIXATION THE ONLY WAY MR CLINTON CAN HOPE TO RAISE TAXES AND REDUCE THE FEDERAL DEFICIT WITHOUT STUNTING ECONOMIC GROWTH IS TO PERSUADE THE FEDERAL RESERVE TO KEEP SHORTTERM RATES LOW AND TO GET THE BOND MARKET TO BRING LONGTERM RATES DOWN THE SHARP DECLINE IN LONGTERM INTEREST RATES IF SUSTAINED COULD GIVE THE ECONOMY JUST THE KICK IT NEEDS AND WITH MUCH GREATER FORCE THAN THE SPENDING PROJECTS MR CLINTON HAS OFFERED TO STIMULATE THE ECONOMY IT'S BY FAR THE MOST POTENT STIMULUS THAT I CAN IMAGINE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAYS INDEED THE DECLINE IN LONGTERM RATES COULD BE THE EQUIVALENT BY SOME CALCULATIONS OF 90 BILLION OF FISCAL STIMULUS TRIPLE WHAT THE PRESIDENT IS PROPOSING WHILE MR RUBIN FORMERLY COCHAIRMAN OF GOLDMAN SACHS & CO IS WELLACQUAINTED WITH BOND MARKETS SOME OF MR CLINTON'S CLOSEST POLITICAL ADVISERS ARE NEW TO THE WORLD OF YIELD CURVES LONG BONDS AND TRADINGROOM FRENZIES BUT THEY ARE QUICKLY GETTING WITH THE PROGRAM I USED TO THINK IF THERE WAS REINCARNATION I WANTED TO COME BACK AS THE PRESIDENT OR THE POPE OR A 400 BASEBALL HITTER SAYS JAMES CARVILLE THE POLITICAL MASTERMIND OF MR CLINTON'S ELECTION TRIUMPH BUT NOW I WANT TO COME BACK AS THE BOND MARKET YOU CAN INTIMIDATE EVERYBODY DESPITE YESTERDAY'S SETBACK THE BOND MARKET STILL GIVES THE CLINTON TEAM CAUSE FOR CHEER YIELDS ON 30YEAR BONDS ARE STILL DOWN SHARPLY FROM 776 JUST AFTER THE ELECTION AND FROM 710 BEFORE MR CLINTON'S SPEECH THIS WEEK'S 30YEAR YIELDS ARE AS LOW AS THEY'VE BEEN SINCE THE TREASURY RESUMED SELLING 30YEAR BONDS IN 1977 THE YIELD ON 10YEAR NOTES ENDED YESTERDAY AT 601 AFTER FALLING TUESDAY TO THE LOWEST LEVEL SINCE 1972 COMPARED WITH 627 BEFORE THE PRESIDENT'S SPEECH EVEN IF THE BOND MARKET SHOULD BACK UP IN THE SHORT TERM SAYS A TREASURY SPOKESMAN WE ARE CONVINCED THAT OVER TIME INTEREST RATES WILL BE SIGNIFICANTLY LOWER THAN THEY WOULD HAVE BEEN IN THE ABSENCE OF THE PLAN WALL STREET WAS CAUGHT OFF GUARD BY THE BOND RALLY AND MANY FIRMS HAD TO HUSTLE TO KEEP UP WITH WAVES OF ORDERS FROM INVESTORS BOND MUTUAL FUNDS HAVE BEEN ALL BUT OVERWHELMED BY INDIVIDUAL INVESTORS EVERYBODY I WAS TALKING TO YESTERDAY WAS SAYING THAT THEY HAVE RECEIVED SO MUCH MONEY THAT THEY CAN'T INVEST IT QUICKLY ENOUGH SAYS ROBERT L ADLER PRESIDENT OF AMG DATA SERVICES WHICH TRACKS MUTUAL FUNDS THE FARTHER YIELDS FELL BELOW 7 THE MORE INCREDULOUS BOND TRADERS BECAME THIS IS LIKE A HUGE LOCKER ROOM AND YOU'RE HEARING ALL THESE TOWELS BEING THROWN IN AS DEALERS GIVE UP TRYING TO GUESS HOW MUCH MORE YIELDS CAN DROP SAYS PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT I'VE BEEN YELLED AT AND SWORN AT AND QUESTIONED ABOUT RUMORS ALL DAY SAYS DAVID ADER A BOND MARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES THOUGH LOWER RATES ARE UNAMBIGUOUSLY GOOD FOR THE ECONOMY AND THEREFORE THE PRESIDENT MR CLINTON MAY BE TAKING A BIG RISK BY SO PUBLICLY HITCHING HIMSELF TO THE BOND MARKET IT ISN'T NECESSARILY THE BEST GUIDE TO ECONOMIC POLICY THE BUSH ADMINISTRATION CONSTANTLY REFERRED TO THE BOND MARKET AS A REASON FOR THEIR POLICIES AND IT DIDN'T DO THEM MUCH GOOD SAYS LAWRENCE KUDLOW OF BEAR STEARNS & CO WHO WORKED IN THE REAGAN WHITE HOUSE IT COULD LEAD YOU TO ANTIGROWTH POLICIES AFTER ALL PART OF THE RUSH TO BUY BONDS COMES FROM PEOPLE WHO THINK THE CLINTON PROGRAM WILL LEAD TO A STAGNANT ECONOMY AND LOWER INTEREST RATES FOR A DEMOCRATIC PRESIDENT THE APPROBATION OF THE BOND MARKET IS RISKY SAYS POLITICAL ANALYST KEVIN PHILLIPS THE MARKET WOULD WELCOME AN EVEN TOUGHER DEFICITREDUCTION PROGRAM EVEN IF IT ENDED UP HURTING THE ECONOMY AND CHOKING OFF THE PROGRAMS THAT ARE VITAL TO DEMOCRATIC INTERESTS WHAT THE BOND MARKET LIKES IS A WEAK ECONOMY THE EROSION OF ENTITLEMENT PROGRAMS AND TAX INCREASES ON THE MIDDLE CLASS MR PHILLIPS SAYS ALL THOSE ARE INCOMPATIBLE WITH THE DEMOCRATIC CAMPAIGN PROMISES AND THE DEMOCRATIC FUTURE AT LEAST SOME ON WALL STREET SAY THE WHITE HOUSE IS ON THE RIGHT TRACK THE BOND MARKET VOTE THAT CLINTON HAS RECEIVED SINCE HIS SPEECH HAS ESSENTIALLY BEEN A WILLINGNESS TO BELIEVE THAT THE BUDGET DEFICIT IS GOING TO COME DOWN A LOT SAYS ELLIOT PLATT DIRECTOR OF ECONOMIC RESEARCH FOR DONALDSON LUFKIN & JENRETTE ALTHOUGH THE FED HAS PUSHED DOWN SHORTTERM INTEREST RATES SUBSTANTIALLY IN THE PAST COUPLE OF YEARS LONGTERM RATES HAVE REMAINED STUBBORNLY HIGH PARTICULARLY AFTER ADJUSTING FOR INFLATION IN PART THIS IS BECAUSE OF MARKET FEARS ABOUT A RESURGENCE OF INFLATION AND IN PART IT IS BECAUSE OF THE WEIGHT OF THE GROWING FEDERAL DEFICIT WITH INFLATION AT THE LOWEST LEVELS IN A GENERATION AND PROSPECTS FOR SHRINKING THE DEFICIT IMPROVING LONGTERM RATES ARE NOW FALLING AND THEY COULD KEEP FALLING IT WILL TAKE A VERY LONG WHILE BEFORE PEOPLE REALLY HAVE A SERIOUS VIEW THAT INFLATION IS NO LONGER A CRUCIAL FORCE IN THIS ECONOMY MR GREENSPAN SAID THIS WEEK NONETHELESS IF WE RESOLVE THE LONGTERM STRUCTURAL BUDGET DEFICIT THEN I THINK WE HAVE STILL FURTHER TO GO ON THE DOWN SIDE FOR LONGTERM INTEREST RATES CONTRIBUTING TO THE DECLINE IN LONGTERM RATES IS THE TREASURY'S DECISION DISCLOSED IN LAST WEEK'S BUDGET TO SHIFT ITS BORROWING AWAY FROM LONGER MATURITIES IN FAVOR OF SHORTER MATURITIES THAT WOULD REDUCE THE SUPPLY OF LONGTERM SECURITIES PUSHING UP THEIR PRICE THE LAST TIME LONGTERM INTEREST RATES SANK SO SHARPLY WAS IN 1986 WHEN PLUNGING OIL PRICES CONVINCED INVESTORS THAT INFLATION WAS ABATING SAYS JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE BUT HE DRAWS FEW PARALLELS BETWEEN THAT EPISODE AND THE RECENT DROP IN RATES THE STOCK MARKET TREND IS TOUGHER TO DISCERN THE DOW JONES INDUSTRIAL AVERAGE SLID MORE THAN 80 POINTS LAST WEEK AFTER MR CLINTON LAMBASTED DRUG COMPANIES AND PREVIEWED HIS ECONOMIC PLAN ON NATIONAL TELEVISION ALTHOUGH THE MARKET CLIMBED 3323 POINTS YESTERDAY TO CLOSE AT 335650 IT STILL HASN'T RECOVERED ALL THE LOST GROUND BUT IT IS MORE THAN 100 POINTS HIGHER THAN IT WAS ON ELECTION DAY THE WHITE HOUSE FOCUSES ALMOST EXCLUSIVELY ON THE BOND MARKET ARGUING THAT THE BIGGERTHANANTICIPATED DECLINE IN LONGTERM RATES IS PROBABLY SUFFICIENT TO OFFSET THE CHILLING EFFECT THAT TAX INCREASES AND SPENDING CUTS MIGHT HAVE ON THE ECONOMY RIGHT FROM THE START THE ADMINISTRATION'S ECONOMIC STRATEGISTS WERE EAGER TO IMPRESS THE BOND MARKET WHEN IT SOARED AFTER TREASURY SECRETARY BENTSEN TALKED FAVORABLY ON TELEVISION ABOUT ENERGY TAXES THE MARKET REACTION STRENGTHENED HIS HAND AND THAT OF OTHER DEFICIT HAWKS IN THE WHITE HOUSE AND THE ADMINISTRATION'S COURTSHIP OF MR GREENSPAN HAS BEEN PARTLY DESIGNED TO SEND A MESSAGE TO THE BOND MARKET LAST WEEK HILLARY RODHAM CLINTON INVITED MR GREENSPAN TO LISTEN FROM A RESERVED SECTION OF THE GALLERY AS THE PRESIDENT SPOKE TO CONGRESS ONLY AFTER THE FED CHAIRMAN ARRIVED AT THE CAPITOL DID HE DISCOVER THAT HE WAS SITTING NEXT TO THE FIRST LADY FOR THE NATION TO SEE THEN THIS WEEK HE GAVE A QUALIFIED THUMBSUP TO THE CLINTON PLAN REFUSING TO JOIN FELLOW REPUBLICANS IN CRITICIZING THE PRESIDENT FOR TAXING TOO MUCH AND CUTTING SPENDING TOO LITTLE WHATEVER THE RATIONALE THE DECLINE IN INTEREST RATES SHOULD HELP SHORE UP AN ECONOMY THAT DOESN'T SEEM TO BE GROWING AS STRONGLY AS IT DID LATE LAST YEAR HALFWAY THROUGH THE FIRST QUARTER MR GREENSPAN SAID YESTERDAY WE APPEAR TO BE GROWING AT A SOMEWHAT SLOWER PACE THAN IN THE SECOND HALF OF LAST YEAR ALREADY THE DECLINE IN MORTGAGE RATES WHICH NOW AVERAGE ABOUT 75 ON 30YEAR LOANS IS TRIGGERING ANOTHER ROUND OF REFINANCING PUTTING MORE CASH IN THE POCKETS OF HOMEOWNERS IN COLUMBUS OHIO YESTERDAY BART SCHIAVO STOPPED BY BANCOHIO A UNIT OF NATIONAL CITY BANK TO SEE WHAT LOWER RATES MIGHT MEAN FOR HIS 80000 MORTGAGE HE ENDED UP APPLYING FOR A 725 15YEAR LOAN THAT WOULD DROP HIS MONTHLY PAYMENTS BY 100 TO 950 MY KID IS GOING TO COLLEGE NEXT YEAR AND ANY EXTRA BUCK HERE OR THERE WILL HELP SAYS MR SCHIAVO A COLLEGE ADMINISTRATOR HE'S NOT ALONE WE'VE BEEN ABSOLUTELY SWAMPED WITH MORTGAGE APPLICATIONS SAYS PETER JUSTEN AN OFFICER AT A UNIT OF COUNTRYWIDE CREDIT INDUSTRIES INC IN PASADENA CALIF THE DAILY VOLUME OF APPLICATIONS DOUBLED IN JANUARY FROM DECEMBER AND HAS DOUBLED AGAIN IN FEBRUARY AT THE SAME TIME THE DECLINE IN LONGTERM RATES IS DRAWING MORE AND MORE CORPORATIONS TO REFINANCE OLD DEBT ADDING TO THEIR CASH FLOW AND PRESUMABLY TO THEIR WILLINGNESS TO SPEND TEXACO INC FOR ONE ISSUED 200 MILLION IN 40YEAR BONDS LAST WEEK THE OIL COMPANY HAD ALREADY SHAVED ITS ANNUAL INTEREST EXPENSE BY ABOUT 80 MILLION OR 14 LAST YEAR BY TAKING ADVANTAGE OF LOWER INTEREST RATES SAYS ITS TREASURER ROBERT ULRICH CITING MR GREENSPAN AS HIS AUTHORITY SECRETARY BENTSEN SAYS EVERY TENTH OF A PERCENTAGE POINT DECLINE IN LONGTERM RATES IS THE EQUIVALENT OF 10 BILLION OF FISCAL STIMULUS THOUGH SOME ECONOMISTS SAY THIS MAY BE A LITTLE HIGH MOST CONSIDER IT A REASONABLE FORMULA BY THAT MEASURE THE DECLINE OF 09 PERCENTAGE POINT IN YIELDS ON 30YEAR TREASURY BONDS SINCE THE ELECTION TRANSLATES INTO SOMETHING LIKE A 90 BILLION STIMULUS THAT'S FAR MORE THAN THE ROUGHLY 30 BILLION STIMULUS PACKAGE MR CLINTON HAS PENDING ON CAPITOL HILL INDEED THE INTERESTRATE KICK COULD UNDERMINE THE ECONOMIC RATIONALE FOR PURSUING WHAT SENATE REPUBLICAN LEADER BOB DOLE HAS TAKEN TO CALLING THE POLITICAL STIMULUS STILL MR CLINTON ISN'T LIKELY TO BACK AWAY FROM THE STIMULUS PACKAGE WHICH CALLS FOR 16 BILLION IN NEW SPENDING EVEN THOUGH THE BOND MARKET WOULD CHEER HIM ON IF HE DID SIMPLY PUT THE ADMINISTRATION ISN'T WILLING TO TAKE THE POLITICAL RISK HOWEVER SLIGHT THAT THE ECONOMIC RECOVERY MIGHT FALTER AGAIN IF THE RATE DECLINE IS A PLEASANT SURPRISE FOR MR CLINTON AND A HELP FOR THE ECONOMY IT IS SOMETHING OF AN EMBARRASSMENT FOR WALL STREET SEERS OF THE 44 ECONOMISTS SURVEYED BY THE WALL STREET JOURNAL AT THE END OF LAST YEAR ONLY SIX PREDICTED LONGTERM RATES WOULD DIP BELOW 7 BY THE END OF THIS YEAR I DON'T THINK ANYONE REMOTELY DREAMED IT WOULD GO AS FAR AS IT DID AS FAST AS IT DID SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC WHO IS STILL SURPRISED THAT THE MARKET RALLIED LIKE CRAZY ON THE ANNOUNCEMENT OF THE DEFICITREDUCTION PLAN RATHER THAN WAITING FOR IT TO PASS AT THE END OF LAST YEAR MR FINE PREDICTED THAT LONGTERM INTEREST RATES COULD RISE AS HIGH AS 775 BY THE END OF 1993 I'M PROBABLY GOING TO BE WRONG ABOUT THAT HE CONCEDES 9302250061 930225 ECONOMY AIRBUS INDUSTRIE INQUIRY SOUGHT BY 2 SENATORS FAIRNESS OF AID QUESTIONED US MAY INITIATE CASE OF JAPAN CAR DUMPING BY IAN OLGEIRSON AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TWO SENATORS PROMINENT ON TRADE ISSUES PROPOSED THAT THE COMMERCE DEPARTMENT INVESTIGATE WHETHER EUROPEAN GOVERNMENTS UNFAIRLY SUBSIDIZE AIRBUS INDUSTRIE AS PART OF LEGISLATION TO SUPPORT THE TROUBLED US AEROSPACE INDUSTRY SEPARATELY THE CLINTON ADMINISTRATION SIGNALED IT WILL CONSIDER INITIATING A DUMPING CASE AGAINST THE JAPANESE AUTO INDUSTRY SUCH A MOVE WOULD RESURRECT AN EFFORT THAT THE BIG THREE CAR MAKERS RECENTLY DROPPED AND WOULD FURTHER RANKLE US TRADING PARTNERS ALREADY ALARMED BY THE ADMINISTRATION'S TOUGH TRADING STANCE COMMERCE SECRETARY RON BROWN LEFT THE DOOR OPEN TO A GOVERNMENTINITIATED DUMPING CASE IN TESTIMONY BEFORE THE SENATE ENERGY AND COMMERCE COMMITTEE IN RESPONSE TO QUESTIONING FROM PANEL CHAIRMAN ERNEST HOLLINGS D SC MR BROWN SAID THAT IS UNUSUAL ACTION AS YOU KNOW BUT I THINK THERE MIGHT BE A TIME IN THE FUTURE WHERE WE COULD TAKE UNUSUAL ACTION HE CAUTIONED WE HAVEN'T REACHED A CONCLUSION ON THAT THE PROSPECT OF ASSISTANCE TO THE AEROSPACE AND AUTO INDUSTRIES COMES AS THE ADMINISTRATION INITIATES INDUSTRIAL POLICIES DESIGNED TO FORGE A LINK BETWEEN GOVERNMENT AND CORPORATE AMERICA IF PASSED THE AEROSPACE LEGISLATION INTRODUCED BY SENS JOHN DANFORTH R MO AND MAX BAUCUS D MONT WOULD PROMPT THE COMMERCE DEPARTMENT TO START A SOCALLED COUNTERVAILINGDUTY INVESTIGATION OF SUBSIDIES PROVIDED BY FRANCE GERMANY AND BRITAIN TO AIRBUS INDUSTRIE AN AIRCRAFT CONSORTIUM THE GOVERNMENT WOULD LEVY TARIFFS ON AIRBUS PLANES IMPORTED INTO THE US IF THE DEPARTMENT FOUND THAT AIRBUS IS SUBSIDIZED UNFAIRLY AND THE US INTERNATIONAL TRADE COMMISSION RULES THAT US INDUSTRY HAS BEEN INJURED BY THE SUBSIDIES MR DANFORTH WHOSE STATE INCLUDES THE HEADQUARTERS OF AEROSPACE GIANT MCDONNELL DOUGLAS CORP SAID THE BILL IN NO WAY REOPENS A NINEMONTHOLD PACT SIGNED BY THE BUSH ADMINISTRATION ALLOWING US AND EUROPEAN AEROSPACE INDUSTRIES TO RECEIVE SUBSIDIES OF ABOUT 33 OF TOTAL PRODUCTDEVELOPMENT COSTS THE PACT HAS BEEN THE TARGET OF MUCH CRITICISM IN RECENT DAYS NOTABLY FROM PRESIDENT CLINTON ON SEVERAL OCCASIONS AFTER A MEETING IN WASHINGTON WITH PRESIDENT CLINTON BRITISH PRIME MINISTER JOHN MAJOR PLAYED DOWN THE PRESIDENT'S RECENT COMMENTS ON AIRBUS MR MAJOR NOTED THE EXISTING SUBSIDY AGREEMENT AND SAID I THINK THERE'S NO PROPOSITION IN WHAT THE PRESIDENT SAID TO CHANGE THAT PARTICULAR AGREEMENT THE TWO MEN ALSO AFFIRMED THEIR SUPPORT FOR PROMPTLY COMPLETING THE WORLD TRADE TALKS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE A SEPARATE SENATE BILL WAS INTRODUCED TO CREATE AN AEROSPACE CONSORTIUM MODELED AFTER SEMATECH WHICH COORDINATES RESOURCES FOR RESEARCH AND DEVELOPMENT OF SEMICONDUCTOR TECHNOLOGIES THE PROPOSED CONSORTIUM DUBBED AEROTECH WOULD BE FUNDED EVENLY BY INDUSTRY AND GOVERNMENT THE PROPOSED GOVERNMENT SHARE OF 10 BILLION WOULD COME FROM REDIRECTING EXISTING AEROSPACE RESEARCH FUNDING ON CAPITOL HILL A BOEING CO OFFICIAL JOINED THE CHORUS CRITICIZING AIRBUS WHEN HE URGED THE US GOVERNMENT TO SCRUTINIZE AIRBUS'S FINANCIAL RECORDS AN OPTION MADE AVAILABLE UNDER LAST YEAR'S TRADE PACT LAWRENCE CLARKSON BOEING'S VICE PRESIDENT OF GOVERNMENT AND INTERNATIONAL AFFAIRS TOLD A HOUSE SUBCOMMITTEE ON AVIATION THAT HIS COMPANY WHICH JUST ANNOUNCED 28000 JOB CUTS HAS BEEN HIT HARD BY DELIVERY DELAYS AMID THE US AIRLINE RECESSION THE PROBLEM HAS BEEN MADE WORSE HE SAID BECAUSE THE WEAKENED CONDITION OF US AIRLINES ALLOWS AIRBUS TO CAPTURE INCREASED MARKET SHARE THROUGH ADVANTAGEOUS NONMARKET PRICING AND FINANCING MANAGERS AT BOEING AND US RIVAL MCDONNELL DOUGLAS STILL SAY THEY FEAR THE SUPPORT OF EUROPEAN GOVERNMENTS FOR AIRBUS GIVES THE CONSORTIUM AN UNFAIR EDGE IN OBTAINING FUNDS AN EDGE THAT TRANSLATES INTO ATTRACTIVE TERMS ON JET DEALS AN AIRBUS SPOKESMAN IN THE US SAID BOEING HAS EVERY RIGHT TO PURSUE THROUGH THE US GOVERNMENT THE REMEDIES AVAILABLE UNDER LAST YEAR'S AGREEMENT BUT THE SPOKESMAN CHALLENGED MR CLARKSON'S SUGGESTION THAT AIRBUS PRICES ITS GOODS UNFAIRLY POSSIBLE COMMERCE DEPARTMENT ACTION ON ALLEGEDLY UNFAIR PRICING BY JAPANESE AUTO MAKERS WOULD COME ON THE HEELS OF A DECISION BY CHRYSLER CORP GENERAL MOTORS CORP AND FORD MOTOR CO NOT TO PURSUE AN ANTIDUMPING CASE THE BIG THREE PUBLICLY SAID THEY WANTED TO GIVE THE CLINTON ADMINISTRATION TIME TO MOLD ITS TRADE POLICY BUT THEY WERE ALSO SPURRED BY WORRIES OVER A CONSUMER BACKLASH AND SECOND THOUGHTS AT GM A SUCCESSFUL ANTIDUMPING CASE WOULD MOST LIKELY RAISE THE PRICE OF AUTOMOBILES USUALLY THE GOVERNMENT DOESN'T PURSUE SUCH CASES UNLESS ASKED TO BY A US INDUSTRY A COMMERCE DEPARTMENT SPOKESMAN SAID THE DEPARTMENT ISN'T PRESENTLY CONSIDERING INITIATING ITS OWN INVESTIGATION BUT DIDN'T RULE OUT THE POSSIBILITY JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9302250060 930225 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG THE LEADING MAKERS OF DESKTOP LASER PRINTERS HAVE BEGUN TO OFFER A NEW LEVEL OF PRINT QUALITY AND SPEED AT MAINSTREAM PRICES THESE COMPANIES NOTABLY HEWLETTPACKARD AND APPLE COMPUTER SEE THE NEW STANDARD THEY ARE SETTING AS A NEARUNIVERSAL ONE BUT WHETHER YOU SHOULD TRADE IN YOUR OLD PRINTER FOR THESE IMPROVED MACHINES DEPENDS A LOT ON WHAT KIND OF DOCUMENTS YOU PRODUCE TO MAKE AN INFORMED DECISION REQUIRES A LITTLE BACKGROUND KNOWLEDGE FOR YEARS STANDARD LASER PRINTERS HAVE LAID TEXT AND GRAPHICS DOWN ON THE PAGE AT A RESOLUTION OF 300 DOTS PER INCH THIS MEANS EVERY INCH OF PRINTED MATERIAL IS CREATED ON AN INVISIBLE GRID MEASURING 300 DOTS OF TONER THE POWDERED INK USED BY LASER PRINTERS HORIZONTALLY BY 300 DOTS VERTICALLY THAT DEGREE OF SHARPNESS REVOLUTIONIZED COMPUTER PRINTING BECAUSE ESPECIALLY FOR TEXT IT PRODUCES DOCUMENTS THAT LOOK CRISP CLEAN AND PROFESSIONAL SEVERAL COMPANIES HAVE OFFERED HIGHERRESOLUTION PRINTERS BUT THESE WERE OFTEN VERY EXPENSIVE OR VERY SLOW BECAUSE PRINTING AT HIGHER RESOLUTIONS INVOLVES MANIPULATING VASTLY GREATER NUMBERS OF DOTS WHICH REQUIRES MORE PROCESSING BY BOTH THE COMPUTER AND THE PRINTER FOR A PRINTER WITH A RESOLUTION OF 600 DOTS PER INCH OR DPI THE SQUAREINCH GRID MEASURES 600 DOTS BY 600 THAT WORKS OUT TO FOUR TIMES THE DOTS OF A 300DPI MACHINE OR AS MANY AS 360000 A SQUARE INCH COMPARED WITH 90000 AND THUS FOUR TIMES AS MUCH WORK NOW HEWLETTPACKARD THE DOMINANT AMERICAN PRINTER MAKER HAS BROUGHT OUT A PAIR OF SLEEK POWERFUL 600DPI PRINTERS THE LASERJET 4 AND LASERJET 4M THE BASIC LASERJET 4 FOR IBMCOMPATIBLE COMPUTERS ONLY SELLS FOR AS LITTLE AS 1400 AT DISCOUNT LESS THAN THE 300DPI LASERJET III MODEL IT REPLACES THE LASERJET 4M WHICH I HAVE BEEN TESTING IS DESIGNED TO ACCOMMODATE APPLE'S MACINTOSH COMPUTERS AS WELL AS IBMCOMPATIBLE PCS IT ALSO INCLUDES TRIPLE THE MEMORY OF THE BASIC 4 AND HAS ADOBE SYSTEMS' POSTSCRIPT PRINTING LANGUAGE BUILT IN THE 4M SELLS FOR ABOUT 2000 AT DISCOUNT ALSO A RELATIVELY AGGRESSIVE PRICE FOR ITS FEATURES APPLE THE NO 2 PRINTER MAKER HAS INTRODUCED THE LASERWRITER PRO 600 AND LASERWRITER PRO 630 A PAIR OF MACHINES SIMILAR TO THE HIGHEREND LASERJET 4M AND SELLING IN THE SAME 2000 RANGE I HAVEN'T TESTED THE APPLE MODELS BUT BOTH COMPANIES' NEW PRINTERS USE THE SAME ENGINE OR BASIC PRINTING MECHANISM MADE BY CANON OF JAPAN THE ENGINE NOT ONLY PRINTS AT 600 DPI BUT ALSO USES A FINERGRAINED TONER THAT ENHANCES RESOLUTION HP'S NEW LASERJETS AREN'T JUST HIGHERRESOLUTION AND AFFORDABLE THEY ARE ALSO SPEEDY THE COMPANY SAYS THEY CAN PRODUCE AS MANY AS EIGHT PAGES A MINUTE EVEN WHILE LAYING DOWN ALL THOSE EXTRA DOTS AND THE LASERJET 4M I'VE BEEN TESTING ON BOTH AN IBMCOMPATIBLE PC AND A MAC HAS PROVED MUCH FASTER THAN A MAINSTREAM 300DPI LASER PRINTER THE LASERJETS ALSO CAN SEND INFORMATION ABOUT THEIR STATUS BACK TO THE COMPUTER SO WITH THE RIGHT SOFTWARE THE PRINTER COULD FOR INSTANCE POST A NOTICE ON THE SCREEN THAT THE PAPER TRAY IS EMPTY APPLE PRINTERS HOOKED TO MACINTOSHES HAVE HAD A SIMILAR CAPABILITY FOR YEARS THE HP MODELS ARE ALSO WELLDESIGNED THEY ARE FAIRLY COMPACT AT ROUGHLY 16 INCHES SQUARE AND ABOUT A FOOT HIGH THEY COME STANDARD WITH A 250SHEET AUTOMATIC PAPER FEEDER THAT SLIDES OUT OF SIGHT INTO THE PRINTER'S BASE AND A SECOND FOLDOUT PAPER TRAY THAT HOLDS AS MANY AS 100 SHEETS OR 10 ENVELOPES THE HP MACHINES HAVE MANY BUILTIN FONTS INCLUDING THE TRUETYPE VARIETIES USED BY MICROSOFT'S WINDOWS PROGRAM AND ON MACS AND A WELLARRANGED CONTROL PANEL WITH A BRIGHT DISPLAY THE TONER CARTRIDGE WHICH MUST BE REPLACED PERIODICALLY IS RATED TO LAST A RELATIVELY HIGH 6000 PAGES I FOUND THE LASERJET 4M DOES A MUCH BETTER JOB WITH GRAPHICS ESPECIALLY PHOTOGRAPHS THAN MY 300DPI LASER PRINTER GRAY AREAS ARE MUCH FINER AND MORE EVEN GRAPHIC IMAGES SHARPER AND RICHER BUT ON TEXT THE IMPROVEMENT IS ONLY NOTICEABLE IF YOU LOOK HARD IN MY JUDGMENT FOR STANDARD BUSINESS DOCUMENTS THAT ARE WHOLLY OR MAINLY TEXT 600DPI RESOLUTION ISN'T A BIG LEAP FORWARD FROM 300 DPI MY ONLY GRIPE IS THAT THE 4M OCCASIONALLY SPITS OUT PAGES WITH A SLIGHT CURL AT THE LEADING EDGE THIS ISN'T VERY NOTICEABLE BUT IT MAKES THE PAGES TOUGH TO FEED INTO A FAX MACHINE HP SAYS IT HAS HAD ONLY SCATTERED REPORTS ABOUT THE CURLING AND DOESN'T REGARD IT AS A MAJOR PROBLEM THOUGH THE COMPANY IS TRACKING IT IF YOU PRINT A LOT OF GRAPHICS OR WANT MORE SPEED THE LASERJET 4 IS A GOOD BUY ANYONE WANTING TO SHARE A HIGHQUALITY PRINTER BETWEEN AN IBMCOMPATIBLE PC AND A MACINTOSH WOULD DO WELL TO CONSIDER THE LASERJET 4M WHICH UNLIKE APPLE'S NEW MACHINES CAN AUTOMATICALLY SWITCH BETWEEN POSTSCRIPT PREDOMINANTLY USED ON MACS AND HP'S OWN PCL 5 PRINTER LANGUAGE USUALLY USED ON IBMCOMPATIBLES IF YOU NEED TO ADD NEW PRINTERS ANYWAY YOU MIGHT WANT TO TURN TO THE LASERJET 4 THAT WAY EVEN IF YOU DON'T THINK YOU NEED 600 DPI YOU WILL GET MORE ADVANCED CAPABILITIES AT A REASONABLE PRICE THAT MIGHT PROVE USEFUL IN THE FUTURE BUT I WOULDN'T ADVISE HE MAINSTREAM IBMCOMPATIBLE USER WHO FOR THE MOST PART PRINTS TEXT AND IS HAPPY WITH CURRENTGENERATION 300DPI LASER PRINTERS TO RUSH OUT AND REPLACE THEM WITH 600DPI MACHINES FOR STANDARD TEXT DOCUMENTS 300DPI PRINTERS STILL SEEM GOOD ENOUGH TO ME 9302250059 930225 INTERNATIONAL SKETCHY PLAN TO RESTART MIDEAST TALKS PUTS BURDEN MAINLY ON PALESTINIANS BY ROBERT S GREENBERGER AND AMY DOCKSER MARCUS STAFF REPORTERS OF THE WALL STREET JOURNAL JERUSALEM SECRETARY OF STATE WARREN CHRISTOPHER WASN'T ABLE TO SET A DATE FOR THE RESUMPTION OF MIDEAST PEACE TALKS BUT HE DID GET THE OUTLINES OF AN ARRANGEMENT THAT COULD BRING ARABS AND ISRAELIS BACK TO THE NEGOTIATING TABLE WITHIN TWO MONTHS UNDER THE PLAN MOST OF THE BURDEN FALLS ON THE PALESTINIANS WHO ARE BEING URGED TO RETURN TO THE TALKS IN EXCHANGE FOR THE PROSPECT OF RELAXED RESTRICTIONS IN THE ISRAELIOCCUPIED TERRITORIES AS WELL AS A GREATER US ROLE IN THE PEACE PROCESS JORDAN LEBANON AND SYRIA THE ARAB STATES ALSO NEGOTIATING WITH ISRAEL ARE EAGER TO RETURN TO THE TALKS PARTICULARLY IF THERE WILL BE GREATER US INVOLVEMENT THE ARABS RELY ON A US PRESENCE TO PUT PRESSURE ON ISRAEL THE PEACE TALKS HAVE BEEN AT A STALEMATE SINCE DECEMBER WHEN ISRAEL DEPORTED 415 PALESTINIANS BELONGING TO THE FUNDAMENTALIST GROUP HAMAS THE ARABS WANT THE ISSUE RESOLVED BEFORE THEY RESUME TALKS MR CHRISTOPHER AND ISRAELI PRIME MINISTER YITZHAK RABIN WORKED OUT A PLAN EARLIER THIS MONTH UNDER WHICH ABOUT 100 DEPORTEES COULD RETURN IMMEDIATELY AND THE OTHERS COULD GO HOME BY YEAR END THE FUNDAMENTALISTS HAVE INSISTED THAT THEY ALL BE RETURNED IMMEDIATELY AND THE ARABS HAVE PUSHED FOR MORE CONCESSIONS FROM ISRAEL AT A NEWS CONFERENCE YESTERDAY HOWEVER IN RESPONSE TO A QUESTION ABOUT WHAT ISRAEL SHOULD DO TO PERSUADE PALESTINIANS TO RETURN TO THE TALKS MR CHRISTOPHER SAID I'M REALLY TALKING TO THE PALESTINIANS ABOUT THEIR STAKE IN THIS ENDEAVOR I'M NOT IN THE BUSINESS OF PRESSURING THE ISRAELIS TO DO ANYTHING BUT THE SECRETARY OF STATE IS DISCUSSING SOME PROPOSALS WITH ISRAEL THAT WOULD IMPROVE CONDITIONS FOR PALESTINIANS LIVING UNDER ISRAELI RULE AS WELL AS POSSIBLY PERMITTING THE RETURN OF OTHER PALESTINIANS WHO HAD BEEN PREVIOUSLY DEPORTED ACCORDING TO US OFFICIALS AND ISRAEL IS CONDUCTING A REVIEW OF THE 415 PALESTINIANS DEPORTED LAST DECEMBER THAT COULD RESULT IN A SHORTER EXILE FOR SOME AT A NEWS CONFERENCE IN ARAB EAST JERUSALEM YESTERDAY FOLLOWING A MEETING WITH MR CHRISTOPHER HANAN ASHRAWI A PALESTINIAN SPOKESWOMAN SAID THAT THERE HAD BEEN SEVERAL PROPOSALS MADE THAT WE DECIDED ARE WORTH THINKING ABOUT AND PURSUING FOR THE PALESTINIANS THE MAIN STUMBLING BLOCK TO RETURNING TO THE PEACE NEGOTIATIONS IS PUBLIC OPINION THOUGH PALESTINIAN LEADERS ALSO WANT TO RESUME THE TALKS WHICH ARE SUPPOSED TO LEAD TO POLITICAL AUTONOMY THE DEPORTEES ENJOY WIDESPREAD SUPPORT AMONG THE PALESTINIAN POPULATION IN THE TERRITORIES A POLL THIS WEEK BY THE JERUSALEM MEDIA AND COMMUNICATION CENTER A PALESTINIANRUN ORGANIZATION SHOWED THAT 84 OPPOSED RENEWING THE TALKS UNTIL THE DEPORTEE ISSUE IS RESOLVED SOME ISRAELI OFFICIALS CONCEDE THAT THEY UNDERESTIMATED THE PROFOUND PSYCHOLOGICAL IMPACT OF THE MASS DEPORTATION ON THE PALESTINIANS WHO FEEL VULNERABLE BECAUSE THEY ARE STATELESS IN THE END THEY'LL GO BACK TO THE PEACE TALKS BECAUSE THEY HAVE NO OTHER OPTION DANNY RUBENSTEIN AN EXPERT ON PALESTINIAN AFFAIRS AT THE ISRAELI DAILY NEWSPAPER HAARETZ TOLD ISRAELI TELEVISION LAST NIGHT 9302250058 930225 SCORES OF S&L DEFENDANTS ARE SLOW PAYING PENALTIES WASHINGTON AP MORE THAN 100 SAVINGS AND LOAN DEFENDANTS WHO ESCAPED LONG PRISON TERMS IN EXCHANGE FOR MAKING PENALTY PAYMENTS HAVE REPAID LESS THAN A HALFPENNY PER DOLLAR OF THE 1338 MILLION THEY OWE ACCORDING TO AN ASSOCIATED PRESS REVIEW OF FEDERAL COURT RECORDS SOME DEFENDANTS AND SOME GOVERNMENT OFFICIALS TOO READILY ACKNOWLEDGE THERE IS LITTLE CHANCE THE 109 CONVICTED S&L FIGURES WHO RECEIVED PLEA BARGAINS WILL EVER REPAY THE HUGE FINES AND RESTITUTIONS THE RESTITUTION ORDERS IN THESE CASES ARE THROWN AROUND LIKE THERE ARE NICKELS AND DIMES INVOLVED SAID WOODROW BROWNLEE FORMER PRESIDENT OF COMMODORE SAVINGS ASSOCIATION IN DALLAS HE HAS REPAID JUST 3000 OF THE 1 MILLION IN RESTITUTION ORDERED IN A PLEA BARGAIN THAT SPARED HIM ANY PRISON TIME WHEN ASKED ABOUT HIS SLOW REPAYMENT MR BROWNLEE WHO EARNS ABOUT 15000 A YEAR IN COMMISSIONS FROM A SALES JOB POUNDED ON HIS CALCULATOR LET'S SEE I'M 53 AND LET'S SAY I HAVE A LIFE EXPECTANCY OF 75 YEARS THAT WORKS OUT TO 47500 PER YEAR MR BROWNLEE SAID 9302250057 930225 DELL COMPUTER DROPS PLANNED SHARE OFFERING FIRM SEES STOCK SLIDE 17 PROFIT FORECAST SUGGESTS RENEWAL OF PRICE WARS BY MICHAEL ALLEN AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL DELL COMPUTER CORP'S STOCK PLUNGED ANOTHER 17 AFTER THE PERSONAL COMPUTER MANUFACTURER YANKED A PROPOSED 200 MILLION STOCK OFFERING AND SKETCHED A GRIM VISION OF RENEWED INDUSTRY BLOODLETTING CITING UNFAVORABLE MARKET CONDITIONS THE AUSTIN TEXAS PC COMPANY WITHDREW A PLANNED OFFERING OF FOUR MILLION COMMON SHARES ALTHOUGH THE DECISION WASN'T SURPRISING GIVEN THE SHARP DROP IN DELL'S STOCK PRICE OVER THE PAST MONTH THE MOVE WAS A BLOW TO GOLDMAN SACHS & CO THE LEAD UNDERWRITER ADDING TO MARKET CONCERN GOLDMAN'S TOP PC ANALYST LOWERED HIS RATING OF DELL STOCK TWO NOTCHES FOLLOWING THE ANNOUNCEMENT IN NATIONAL OVERTHECOUNTER TRADING DELL SHARES LOST 6125 TO CLOSE AT 30125 OTHER PC STOCKS WERE ALSO CAUGHT IN THE DOWNDRAFT WITH COMPAQ COMPUTER CORP QUOTED AT 45 DOWN 2375 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AST RESEARCH INC FELL 1125 CLOSING AT 1625 IN OVERTHECOUNTER TRADING IN A NEWS RELEASE DELL SHRUGGED OFF THE FAILED EQUITY OFFERING SAYING THAT LOW INTEREST RATES MAKE OTHER SOURCES OF CAPITAL ATTRACTIVE THE COMPANY SAID IT IS CONFIDENT ABOUT ITS ABILITY TO FUND SIGNIFICANT GROWTH FOR THE COMING YEAR AS IT CONTINUES ITS AGGRESSIVE PURSUIT OF MARKET SHARE BUT IN ISSUING A PROJECTION FOR THE FISCAL YEAR ENDING IN JANUARY DELL MADE IT CLEAR THAT CONTINUED STRONG MARKETSHARE GROWTH WILL LIKELY COME AT THE EXPENSE OF ITS VAUNTED PROFIT MARGINS THE COMPANY SAID IT EXPECTS SALES TO GROW MORE THAN 70 IN THE CURRENT FISCAL YEAR TO BETWEEN 34 BILLION AND 37 BILLION WITH NET INCOME OF 330 TO 375 A SHARE THOSE PROFIT NUMBERS WHILE AT THE HIGH END OF ANALYSTS' ESTIMATES INDICATE THAT DELL THINKS NET MARGINS OR NET INCOME AS A PERCENTAGE OF SALES MIGHT SLIP BELOW 4 FOR THE YEAR DELL LONG ONE OF THE INDUSTRY'S STELLAR PERFORMERS TYPICALLY POSTS NET MARGINS IN THE 5 TO 6 RANGE RECOVERING PROFITS LOST TO PRICECUTTING BY IMPRESSIVE SALES GROWTH ANALYSTS SAID THE PROJECTIONS SUGGEST DELL IS BRACING FOR ANOTHER ROUND OF BRUTAL PRICE CUTS THE PRICE WARS AREN'T OVER SAYS LUCIANNE PAINTER AN ANALYST WITH SALOMON BROTHERS INC WHO SAYS SHE EXPECTS MAJOR VENDORS TO PUSH AHEAD WITH THEIR DARWINIAN THEME OF TRYING TO SQUEEZE OUT SMALLER PLAYERS A DELL SPOKESWOMAN ESSENTIALLY AGREED WITH THAT INTERPRETATION THE CONSOLIDATION IN THE INDUSTRY THAT BEGAN LAST YEAR IS ACCELERATING AND THE WINNERS' CIRCLE HAS BEEN IDENTIFIED AND WE DON'T WANT TO INHIBIT OUR ABILITY TO SOLIDIFY OUR POSITION IN THAT WINNERS' CIRCLE LONGTERM SHE SAID STILL FEARS ABOUT THE TOLL ON DELL'S NEARTERM EARNINGS CAUSED JITTERS ON WALL STREET DANIEL BENTON A GOLDMAN ANALYST CITED DELL'S MARKET SHARE STRATEGY AS WELL AS GENERAL CONCERNS THAT CYCLICAL PC STOCKS ARE HEADED BACK DOWN IN DOWNGRADING BOTH DELL AND COMPAQ TO MARKET PERFORMER FROM BUY WE EXPECT INVESTOR PSYCHOLOGY TOWARD THE GROUP TO CONTINUE TO SOUR HE SAID YESTERDAY'S ANNOUNCEMENT REPRESENTED AT LEAST THE SECOND TIME IN JUST OVER A YEAR THAT DELL AND GOLDMAN WERE FORCED BY MARKET CONDITIONS TO BACK AWAY FROM A SECURITIES OFFERING IN LATE 1991 THE COMPANY DECIDED NOT TO PROCEED WITH A PROPOSED OFFERING OF 115 MILLION IN 10YEAR CONVERTIBLE SUBORDINATED DEBENTURES AND THE MORE RECENT OFFERING OF COMMON STOCK WAS PLAGUED BY BAD LUCK ALMOST FROM THE BEGINNING SHORTLY AFTER DELL FILED FOR THE OFFERING IN NOVEMBER AN ANALYST WITH KIDDER PEABODY & CO ISSUED A REPORT SUGGESTING THAT THE COMPANY MAY HAVE TRIED TO INFLATE EARNINGS THROUGH AGGRESSIVE FOREIGN CURRENCY TRADES DELL DENIED ANY WRONGDOING AND AFTER A PRELIMINARY INVESTIGATION WHICH ISN'T YET OVER THE SECURITIES AND EXCHANGE COMMISSION ALLOWED THE OFFERING TO CONTINUE BUT THE DELAY PROVED FATAL AND BY THE BEGINNING OF THIS WEEK FEARS OF CONTINUED PRICECUTTING HAD SHAVED ROUGHLY 15 OFF DELL'S 52WEEK HIGH OF 49875 SET IN JANUARY GOLDMAN DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE TRANSACTION SAID DELL'S SLUMPING STOCK PRICE ALONG WITH ITS STRATEGIC SHIFT MADE THE OFFERING MORE DIFFICULT TO COMPLETE DELL IS UNLIKELY TO PROCEED ANY TIME SOON WITH AN EQUITY OFFERING THESE PEOPLE SAID BECAUSE OF CONCERNS RAISED BY THE SEC THE UNDERWRITERS WHICH ALSO INCLUDED MERRILL LYNCH & CO AND ALEX BROWN & SONS INC NEVER WENT ON A ROAD SHOW PRESENTATION TO INSTITUTIONS TO DRUM UP INTEREST IN THE STOCK AFTER THE MATTER AROSE WE DIDN'T WANT TO MARKET A DEAL AND HAVE TO HANG AROUND A LONG TIME TO BRING IT SAID ONE INVESTMENT BANKER ON THE OFFERING GOLDMAN HAS LONG BEEN AMONG THE TOP STOCK UNDERWRITERS ON WALL STREET LAST YEAR IT WAS RANKED NO 2 WITH A 144 SHARE OF THE MARKET ACCORDING TO SECURITIES DATA CO SO FAR THIS YEAR HOWEVER GOLDMAN HAS SLUMPED TO NO 4 WITH A 76 MARKET SHARE SECURITIES DATA SAYS THE SLUMPING TECHNOLOGY SECTOR WOULD HAVE MADE THE PROPOSED DELL ISSUE AN EVEN HARDER SELL IN RECENT WEEKS SEVERAL OTHER COMPUTERRELATED STOCK OFFERINGS HAVE BEEN PULLED THEY INCLUDE ONE FOR CUMULUS CORP A MAKER OF PERSONAL COMPUTERS THAT WAS POSTPONED EARLIER THIS MONTH AND ONE FOR DAISYTEK INC A WHOLESALER OF DATAPROCESSING SUPPLIES THAT WAS WITHDRAWN LAST WEEK ACCORDING TO SECURITIES DATA 9302250056 930225 BUSINESS BRIEF DELTA AIR LINES COMMUTER UNIT TO EXPAND DALLAS/FORT WORTH FLIGHTS ATLANTIC SOUTHEAST AIRLINES IS BEEFING UP ITS FLIGHTS OUT OF ITS DALLAS/FORT WORTH HUB AS DELTA AIR LINES PULLS OUT OF FIVE MARKETS AND LETS ITS SMALLER COMMUTER AFFILIATE PICK UP THE ROUTES INSTEAD THE ACTION WHICH WILL TAKE PLACE OVER THE NEXT SEVERAL MONTHS MEANS THAT SOME PASSENGERS ACCUSTOMED TO FLYING DELTA'S BOEING 737S OR MD88S WILL INSTEAD FLY ATLANTIC SOUTHEAST'S 66PASSENGER ATR72210 TURBOPROPS SUCH MOVES WILL SHRINK THE NUMBER OF AIRLINE SEATS AVAILABLE ON THOSE ROUTES AND COULD DRIVE TICKET PRICES UP IN ADDITION THE SMALLER PLANES ARE EXPECTED TO ADD AN EXTRA 15 MINUTES OR SO TO EACH FLIGHT DELTA WILL SUSPEND SERVICE TO CORPUS CHRISTI LUBBOCK AND AMARILLO IN ADDITION DELTA WILL DROP FLIGHTS FROM THE DALLAS HUB TO WICHITA KAN AND TULSA OKLA BUT CONTINUE FLYING TO THOSE CITIES FROM ITS ATLANTA HUB AT THE SAME TIME ATLANTIC SOUTHEAST WILL INCREASE ITS FLIGHTS AT DALLAS/FORT WORTH TO 122 PER DAY BY OCTOBER FROM THE 92 IT CURRENTLY FLIES 9302250055 930225 BUSINESS BRIEF VONS COS FOURTHPERIOD NET ROSE 88 BUT '93 OUTLOOK IS CAUTIOUS VONS COS ARCADIA CALIF SAID NET INCOME FOR THE FISCAL FOURTH QUARTER ROSE 88 TO 275 MILLION OR 63 CENTS A SHARE FROM 146 MILLION OR 34 CENTS A SHARE IN THE YEAREARLIER PERIOD THE SUPERMARKET CHAIN ATTRIBUTED THE INCREASE TO AN ADDITIONAL WEEK IN THE QUARTER ENDED JAN 3 1993 AS WELL AS THE ACQUISITION OF THE WILLIAMS BROS CHAIN QUARTERLY SALES ROSE 97 TO 136 BILLION FROM 123 BILLION BUT VONS SAID A DECLINE OF 41 IN THE QUARTER'S SAMESTORE SALES AND STRONG COMPETITION CAUSES US TO BE VERY CAUTIOUS AS TO THE OUTLOOK FOR SIGNIFICANT IMPROVEMENTS IN EARNINGS IN 1993 A SPOKESWOMAN SAID VONS HASN'T FELT A MATERIAL IMPACT FROM THE OUTBREAK OF ILLNESS CAUSED BY CONTAMINATED HAMBURGERS AT FOODMAKER INC'S JACK IN THE BOX UNIT A VONS PROCESSING PLANT SUPPLIES GROUND BEEF TO THE FASTFOOD COMPANY AFTER ONETIME CHARGES FOR RETIREE MEDICAL BENEFITS AND DEBT FINANCING VONS'S YEAR NET FELL 10 TO 538 MILLION OR 124 A SHARE FROM 601 MILLION OR 145 A SHARE SALES ROSE TO 56 BILLION FROM 54 BILLION 9302250054 930225 BUSINESS BRIEF SOUTHDOWN INC SEC FILING SAYS SHAREHOLDER MAY SEEK A SEAT ON BOARD A MAJOR SHAREHOLDER OF SOUTHDOWN INC SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT MAY SEEK A SEAT ON THE CEMENT AND CONCRETE MAKER'S BOARD RICHARD C BLUM & ASSOCIATES INC A SAN FRANCISCO INVESTMENT ADVISER THAT CONTROLS A 1474 STAKE IN SOUTHDOWN INC ALSO SAID IT WANTS TO EXPLORE ITS CONCERNS ABOUT A VARIETY OF CORPORATE GOVERNANCE ISSUES AS WELL AS BUSINESS ISSUES WITH SOUTHDOWN'S MANAGEMENT AND DIRECTORS A SPOKESMAN FOR THE FIRM COLIN LIND SAID IT'S OBVIOUS WE'RE UNHAPPY WITH THE WAY SOUTHDOWN IS BEING RUN A SOUTHDOWN SPOKESMAN DECLINED TO COMMENT BLUM & ASSOCIATES WHOSE STAKE INCLUDES SHARES OWNED BY THE CARPENTERS PENSION TRUST REQUESTED TWO BOARD SEATS IN 1991 LAST YEAR RICHARD N TUTOR A COCHAIRMAN OF THE BOARD OF TRUSTEES OF THE CARPENTERS PENSION TRUST WAS NAMED TO SOUTHDOWN'S BOARD SOUTHDOWN POSTED A LOSS OF 406 MILLION OR 269 A SHARE IN 1992 ON REVENUE OF 5074 MILLION AFTER A WRITEDOWN 9302250052 930225 SUPERCOLLIDER IS SAID TO BE OVER BUDGET AND BEHIND SCHEDULE WASHINGTON A REPORT TO CONGRESS DELIVERS ANOTHER JOLT TO THE GOVERNMENT'S GIANT ATOMSMASHING SCIENCE PROJECT WHICH IS UNDER CONSTRUCTION IN TEXAS BUT STILL FACES THE RISK OF CANCELLATION THE GENERAL ACCOUNTING OFFICE TOLD CONGRESS THE SUPERCONDUCTING SUPERCOLLIDER PROJECTED TO COST 825 BILLION BY THE TIME IT'S FINISHED IN 1999 IS OVER BUDGET AND BEHIND SCHEDULE THE ENERGY DEPARTMENT WHICH OVERSEES THE PROJECT FORCEFULLY DISPUTED THE GAO'S CONCLUSION AND SAID THAT WORK ON THE WORLD'S LARGEST HIGHENERGY PARTICLE ACCELERATOR IS ON SCHEDULE AND WITHIN COST ESTIMATES REGARDLESS OF WHO IS RIGHT THE NEW DISPUTE IS CERTAIN TO FURTHER RATTLE SUPPORT FOR THE PROJECT WHICH SURVIVED A HOUSE VOTE LAST YEAR TO KILL IT THE GAO SAID IT COULDN'T ESTIMATE A NEW TOTAL PRICE FOR THE PROJECT SAYING ONLY THAT EARLY PROJECTIONS OF COST OVERRUNS BY MAJOR SUBCONTRACTORS SHOW THAT COST GROWTH COULD BE SUBSTANTIAL BUT ENERGY SECRETARY HAZEL O'LEARY TOLD CONGRESS IN A LETTER THAT THE GAO'S PROJECTIONS WERE BASED ON FAULTY ASSUMPTIONS AND INSUFFICIENT DATA SHE SAID THE 825 BILLION PRICE PREPARED SEVERAL YEARS AGO IS STILL ACCURATE NOT COUNTING COSTS THAT WILL BE INCURRED IF CONGRESS AND THE WHITE HOUSE PARE THE PROJECT'S ANNUAL FUNDING AND DELAY ITS COMPLETION PRESIDENT CLINTON HAS PROPOSED TO CONTINUE FUNDING THE PROJECT BUT AT LOWER ANNUAL LEVELS THAT WILL STRETCH IT OUT BY AT LEAST TWO YEARS IN 1987 THE ENERGY DEPARTMENT ESTIMATED THE PROJECT'S COST AT 53 BILLION 9302250050 930225 LETTERS TO THE EDITOR MIKING THE VIOLA AND OTHER EYEPOPPERS HEIDI WALESON HAS WRITTEN AN INFORMATIVE AND DELIGHTFUL ARTICLE ABOUT THE VIOLA THE YOYOLA MR MA'S EXPERIMENT LEISURE & ARTS FEB 17 HOWEVER SHE IS INCORRECT TO SAY THAT NOBODY WROTE ANY SOLO MUSIC FOR THE VIOLA UNTIL THE 20TH CENTURY HECTOR BERLIOZ HIMSELF A VIOLIST WROTE HAROLD IN ITALY WITH A PROMINENT SOLO VIOLA PART BEFORE 1850 IN FACT A PERFORMANCE BY THE NEW YORK PHILHARMONIC OF HAROLD IN ITALY WAS ONE OF THE EARLY EVENTS TO SHOW UP THE ACOUSTIC WEAKNESSES OF PHILHARMONIC HALL AT LINCOLN CENTER WHEN IT HAD JUST OPENED FOR THE 196263 SEASON A LEADING VIOLIST SOLOIST HAD TO CANCEL AND THE SOLO PART WAS PLAYED BY THE PHILHARMONIC'S FIRSTCHAIR VIOLIST WILLIAM LINCER AUDIENCE EYEBALLS POPPED AS A MICROPHONE WAS PLACED BEFORE MR LINCER A VERY FINE PLAYER WHO HAD TO BE AMPLIFIED HOWEVER TO BE HEARD OVER THE ORCHESTRA THIS WAS PARTLY ATTRIBUTABLE JUST AS MS WALESON SAYS TO THE COMPARATIVE INAUDIBILITY OF THE VIOLA BUT IT ALSO CONSTITUTED THE PHILHARMONIC'S ADMISSION THAT ITS NEW HALL'S ACOUSTICS WERE NOT ONLY NOT LIVING UP TO THE PREOPENING HYPE BUT IN FACT WERE AS BAD AS PEOPLE WERE SAYING OF COURSE THIS AND OTHER ACOUSTIC DISSATISFACTIONS ULTIMATELY LED TO THE GUTTING AND COMPLETE RECONSTRUCTION OF THE INTERIOR AND THE RENAMING OF THE BUILDING AS AVERY FISHER HALL 9302250049 930225 SENATORS CLEAR RESOLUTION TO FREEZE THEIR SALARIES WASHINGTON ANXIOUS MEMBERS OF CONGRESS RUSHED TO DEMONSTRATE THAT THEY'RE READY TO SACRIFICE TOO GOADED BY MAVERICK SEN PAUL WELLSTONE D MINN THE SENATE APPROVED 980 A NONBINDING RESOLUTION TO FREEZE ITS MEMBERS' PAY AT 133644 NOT TO BE OUTDONE HOUSE LEADERS JOINED THEIR SENATE COUNTERPARTS IN SAYING THE FREEZE WOULD BE INCLUDED IN THE BUDGET RESOLUTION TO BE PASSED THIS SPRING AND SUBSEQUENT APPROPRIATIONS BILLS THE BELTTIGHTENING SHOULD START HERE SEN WELLSTONE SAID WE CAN'T ASK FOR SACRIFICE AND THEN ALLOW A PRIVILEGED EXCEPTION FOR OURSELVES SINCE PRESIDENT CLINTON PROPOSED A GOVERNMENTWIDE PAY FREEZE IN HIS ECONOMIC PACKAGE LAST WEEK LAWMAKERS HAVE KNOWN IT WOULD BE HIGHLY EMBARRASSING TO ACCEPT A SCHEDULED 21 COSTOFLIVING RAISE FOR THE FISCAL YEAR BEGINNING THIS OCTOBER BUT NO ONE HAD MOVED TO REJECT THE INCREASE UNTIL MR WELLSTONE FORCED THE ISSUE THE SPIRIT OF AUSTERITY HAD ITS LIMITS HOWEVER SENATORS REJECTED SEPARATE MOVES BY REPUBLICAN THAD COCHRAN OF MISSISSIPPI AND DEMOCRAT HARRY REID OF NEVADA TO ELIMINATE ITS SPECIAL COMMITTEE ON AGING AS A COSTCUTTING MEASURE LATER SENATORS VOTED 6929 TO TURN BACK AN AMENDMENT BY SEN JOHN CHAFFEE R RI TO REDUCE THE BUDGET FOR MOST COMMITTEES TO 95 OF THE PREVIOUS YEAR'S LEVEL 9302250048 930225 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A DISPUTE BETWEEN RUSSIA AND UKRAINE AGAIN THREATENS EUROPE'S NATURAL GAS SUPPLIES BUT UNLIKE LAST OCTOBER WHEN RUSSIAN GAS DELIVERIES UNEXPECTEDLY DROPPED MORE THAN 50 EUROPEAN BUYERS THIS TIME WERE PREPARING FOR AN IMMINENT REDUCTION BY DRAWING ON STORAGE AND OTHER SOURCES RUSSIA HAS THREATENED TO REDUCE SUPPLIES STARTING TODAY TO UKRAINE UNLESS IT PAYS WORLD PRICES FOR THE RUSSIAN GAS IT HAS RECEIVED SINCE FEB 1 UKRAINE SAID THAT IF THE PREVIOUSLY AGREED PRICES ABOUT ONETHIRD OF WORLD LEVELS GO UP THEN IT WANTS HIGHER TRANSIT FEES RUSSIA'S GAS EXPORTS TO WESTERN EUROPE MUST PASS THROUGH UKRAINE WHICH DEPENDS ON RUSSIA FOR ALMOST THREEQUARTERS OF ITS GAS NEEDS UKRAINE HAS AN EDGE IN THIS MUTUAL DEPENDENCE IN THAT CONTROL OF THE PIPELINE ALLOWS IT TO SIPHON OFF GAS FROM THE EXPORT STREAM FOR ITS OWN NEEDS RUSSIA AND UKRAINE WERE NEGOTIATING TO RESOLVE THE DISPUTE OR EXTEND THE DEADLINE THE TALKS INVOLVED FIRMS IN GERMANY WHICH GETS 35 OF ITS GAS FROM RUSSIA AND IS MOSCOW'S LARGEST CUSTOMER JAPAN'S FAIR TRADE COMMISSION HAS FILED A CRIMINAL COMPLAINT ALLEGING THAT FOUR PRINTING COMPANIES RIGGED BIDS FOR A GOVERNMENT AGENCY'S SPECIAL SEALS AND VIOLATED ANTITRUST LAW THE COMPLAINT THE FIRST SINCE WORLD WAR II NAMES THE HITACHI INFORMATION SYSTEMS LTD AFFILIATE OF HITACHI LTD DAI NIPPON PRINTING CO THE TOPPAN MOORE CO JOINT VENTURE OF TOPPAN PRINTING CO AND MOORE CO OF CANADA AND KOBAYASHI KIROKUSHI CO THE FTC ACCUSED THE FOUR OF PICKING ONE TO WIN THE BID AND NAMING THE OTHER THREE SUBCONTRACTORS IN A PROFITSHARING SCHEME 10 OFFICIALS OF THE FIRMS WERE INDICTED SOUTH KOREAN LAND PRICES LAST YEAR FELL AN AVERAGE OF 13 MARKING THE FIRST DECLINE SINCE THE CONSTRUCTION MINISTRY BEGAN RECORDING THE DATA IN 1975 THE DROP RESULTED FROM GOVERNMENT POLICY INCLUDING HEAVY PROPERTY TAXES AIMED AT CURBING RAMPANT REALESTATE SPECULATION THAT PEAKED IN THE LATE 1980S PRICES HAD SURGED 13 IN 1991 21 IN 1990 AND 32 IN 1989 TAIWAN AUTHORIZED BANKS TO DO BUSINESS WITH CHINESE BANKS THROUGH THEIR OVERSEAS SUBSIDIARIES THIS WILL LET TAIWAN BANKS LEND INDIRECTLY TO TAIWAN INVESTORS IN CHINA WHERE FINANCING IS SEVERELY RESTRICTED INDIRECT FINANCING IS REQUIRED BECAUSE TAIWAN BANS OFFICIAL CONTACTS WITH CHINA UNDER THE NEW RULE TAIWAN BANKS' OVERSEAS BRANCHES ALSO MAY DEAL DIRECTLY WITH FOREIGN BANKS' BRANCHES IN CHINA TAIWAN INVESTMENTS IN CHINA TOTAL 7 BILLION IN 7000 FACTORIES UNTIL NOW LOANS FOR SUCH INVESTMENTS WERE OBTAINED MAINLY FROM FOREIGN BANKS IN THIRD COUNTRIES A SHARP REBOUND IN THE FOURTH QUARTER HELPED PUSH SINGAPORE'S 1992 ECONOMIC GROWTH TO 58 INFLATIONADJUSTED GROSS DOMESTIC PRODUCT ROSE 74 IN THE FOURTH QUARTER FROM A YEAR EARLIER AFTER A 57 THIRDQUARTER ADVANCE WHILE THE CITYSTATE'S ECONOMY PICKED UP IN THE SECOND HALF THE 1992 GROWTH RATE WAS STILL DOWN FROM 67 IN 1991 BUT IS EXPECTED TO BE EXCEEDED THIS YEAR IN ITS BUDGET STATEMENT TOMORROW THE GOVERNMENT MAY CUT THE 30 CORPORATE TAX RATE AS MUCH AS FIVE PERCENTAGE POINTS EUROPEAN COMMUNITY INDUSTRY MINISTERS ARE EXPECTED TODAY TO ENDORSE THE OUTLINES OF A PLAN TO RESCUE THE STEEL INDUSTRY THE EC COMMISSION LAST WEEK URGED STEELMAKERS TO STEP UP CUTS IN EXCESS CAPACITY IN EXCHANGE FOR EC PAYMENTS IMPORT RESTRICTIONS AND OTHER MEASURES TO HELP COMPENSATE FOR ABOUT 50000 JOB LOSSES YESTERDAY THOUSANDS OF STEELWORKERS IN GERMANY ITALY AND FRANCE DEMONSTRATED AGAINST ANY STEEL PLANT CLOSURES AND LAYOFFS IN A RESTRUCTURING MOST PEOPLE IN THE FORMER SOVIET REPUBLICS OPPOSE THE CONCEPT OF A FREEMARKET ECONOMY AND BELIEVE THINGS WERE BETTER UNDER THE PREVIOUS POLITICAL SYSTEM BUT IN THE REST OF EASTERN EUROPE A MARKET ECONOMY HAS BETTER THAN 2TO1 SUPPORT EVEN THOUGH CONDITIONS IN SEVERAL COUNTRIES HAVE WORSENED THESE WERE AMONG THE FINDINGS IN A EUROPEAN COMMUNITY SURVEY OF 18500 PEOPLE IN 18 COUNTRIES OF CENTRAL AND EASTERN EUROPE AND THE FORMER SOVIET UNION EC OFFICIALS SAID THE PESSIMISM PARTICULARLY IN THE FORMER SOVIET AREAS REFLECTS ECONOMIC HARDSHIPS CAUSED PARTLY BY SPIRALING INFLATION AND DOESN'T SIGNAL A PREFERENCE TO REVIVE COMMUNISM EASTERN EUROPEANS SAID THEIR MOST IMPORTANT TRADE PARTNERS WILL BE THE EC RUSSIA AND THE US RUSSIANS SAW THEIR TIES MAINLY WITH THE US AND EXSOVIET COUNTRIES SEPARATELY THIRDQUARTER BANK DEPOSITS RECEIVED IN INDUSTRIAL COUNTRIES FROM SOVIET SUCCESSOR REPUBLICS ROSE BY 3 BILLION THE LARGEST QUARTERLY INCREASE IN MORE THAN A DECADE AND AN INDICATOR OF CAPITAL FLIGHT THOUSANDS OF WORKERS IN ROMANIAN STATERUN INDUSTRIES STREAMED INTO BUCHAREST DEMANDING HIGHER PAY TO CATCH UP WITH INFLATION AS LIVING STANDARDS HAVE ERODED UNDER ECONOMIC REFORMS PARIS MUSEUM WORKERS STRIKING FOR BETTER JOB SECURITY AND AGAINST HIGHER ADMISSION FEES FORCED CANCELLATION OF AN INVITATIONONLY SHOWING OF AN EXHIBIT OF HENRI MATISSE'S ARTWORKS AT THE POMPIDOU CENTER THE SHOW WAS TO OPEN TO THE PUBLIC TODAY AFTER MOVING FROM NEW YORK WHERE IT WAS VIEWED BY ABOUT ONE MILLION PEOPLE 9302250047 930225 FOREIGN EXCHANGE DOLLAR ENDS BIT HIGHER AMID SIGNALS ACCORD TO BOLSTER YEN IS NOT IMMINENT BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR SHOOK OFF EARLY WEAKNESS TO END MODESTLY HIGHER ACROSS THE BOARD YESTERDAY BOOSTED BY SIGNS THAT AN INTERNATIONAL ACCORD TO STRENGTHEN THE YEN ISN'T IMMINENT DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16263 MARKS UP FROM 16230 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11748 YEN UP FROM 11708 YEN STERLING PRESSURED BY WIDESPREAD SELLING PLUNGED TO 14295 FROM 14530 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11755 YEN AND AT 16283 MARKS ALSO YESTERDAY THE CANADIAN DOLLAR RECOVERED MOST OF ITS EARLY LOSSES AFTER PRIME MINISTER BRIAN MULRONEY SAID HE WILL RESIGN FOLLOWING HIS PARTY'S CONVENTION IN JUNE LATE IN NEW YORK THE US CURRENCY WAS QUOTED AT 12592 CANADIAN DOLLARS UP FROM C12533 DOLLARS TUESDAY BUT WELL BELOW YESTERDAY'S HIGH OF C12660 DOLLARS THE YEN HAD SURGED DURING THE PAST TWO WEEKS AS ANTICIPATION MOUNTED THAT OFFICIALS FROM THE GROUP OF SEVEN HIGHLY INDUSTRIALIZED NATIONS MEETING IN LONDON THIS WEEKEND WOULD ISSUE A STATEMENT ENDORSING A HIGHER YEN AS A MEANS TO TRIM JAPAN'S MASSIVE TRADE SURPLUS BUT LATE YESTERDAY US TREASURY SECRETARY LLOYD BENTSEN TOLD REPORTERS THE WEEKEND MEETING OF FINANCE MINISTERS AND CENTRAL BANKERS WILL BE DEVOTED TO GETTING ACQUAINTED AND WON'T RESULT IN ANY OFFICIAL COMMUNIQUE ALTHOUGH OTHER G7 OFFICIALS ALREADY HAD MADE SIMILAR STATEMENTS DEALERS SAID MR BENTSEN'S COMMENTS WERE THE FIRST TO CAPTURE THE MARKET'S ATTENTION THEY SAW THE COMMENT AND THEY TOOK SOME DOLLARS BACK THINKING THE DOLLAR MIGHT RALLY OVERNIGHT SAID CHRISTINE ALLGEIER A CORPORATE TRADER AT BANQUE PARIBAS IN NEW YORK AFTER THE YEN'S RECENT GAINS DEALERS SAID INVESTORS BETTING ON FURTHER ADVANCES HAD SOLD DOLLARS SHORT WITH MR BENTSEN'S LATEST COMMENTS THREATENING FURTHER YEN GAINS DEALERS SAID PLAYERS SCRAMBLED TO BUY DOLLARS TO LOCK IN WHAT PROFITS THEY'VE ALREADY MADE PUSHING THE DOLLAR ALMOST A YEN HIGHER IN LESS THAN AN HOUR EVERYBODY'S BEEN SHORT DOLLARYEN AND THEY GOT SQUEEZED OUT SAID JOHN MCCARTHY CHIEF DEALER AT ABNAMRO BANK IN NEW YORK THE DOLLAR'S REBOUND AGAINST THE YEN PULLED THE US CURRENCY HIGHER ACROSS THE BOARD DEALERS SAID BUT THE GAINS WERE LIMITED BY GROWING SKEPTICISM ABOUT THE DOLLAR'S SHORTRUN OUTLOOK DEALERS ADDED THE WIDELY HELD VIEW THAT THE US ECONOMIC RECOVERY WILL LIFT THE DOLLAR LATER THIS YEAR SEEMS TO BRING BUYERS IN WHENEVER THE DOLLAR SLIPS MS ALLGEIER SAID BUT SHE ADDED THAT RECENT SIGNS THE RECOVERY MAY BE SLOWING COMBINED WITH PERSISTENTLY HIGH GERMAN INTEREST RATES HAVE SAPPED THE CONFIDENCE OF MANY SHORTTERM PLAYERS THE US ECONOMY IS ON THE RIGHT TRACK BUT THE FUNDAMENTALS ARE STILL NOT COMPLETELY POSITIVE SHE SAID DEALERS NOTED THAT ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE BOARD UNDERLINED THESE CONCERNS IN TESTIMONY BEFORE CONGRESS YESTERDAY MR GREENSPAN SAID HALFWAY THROUGH THE FIRST QUARTER WE APPEAR TO BE GROWING AT A SOMEWHAT SLOWER PACE THAN IN THE SECOND HALF OF LAST YEAR THE COMMERCE DEPARTMENT'S REPORT EARLIER YESTERDAY SHOWING DURABLEGOODS ORDERS FELL IN JANUARY SEEMED TO BACK UP MR GREENSPAN'S VIEW NEW ORDERS FOR DURABLE GOODS SLID 17 IN JANUARY AFTER RISING 96 IN DECEMBER THE JANUARY DROP WHICH WAS SMALLER THAN MANY OBSERVERS HAD EXPECTED TRIGGERED SOME DOLLAR BUYING DEALERS SAID BUT THE RALLY RAPIDLY FADED AND THE US CURRENCY SETTLED BACK INTO ITS TRADING RANGE THERE'S JUST TOO MUCH UNCERTAINTY SAID RICHARD VULLO SENIOR MARKETING REPRESENTATIVE AT BANK OF MONTREAL IN NEW YORK 9302250046 930225 BUSINESS BRIEF NATIONAL CONVENIENCE STORES INC COURT APPROVAL ALLOWS FIRM TO EMERGE FROM CHAPTER 11 NATIONAL CONVENIENCE STORES INC EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS GAINING COURT APPROVAL FOR A PLAN OF REORGANIZATION THAT CREDITORS TENTATIVELY AGREED TO IN DECEMBER THE PLAN'S EFFECTIVE DATE SHOULD BE ANNOUNCED IN THE NEXT FEW WEEKS THE COMPANY SAID UNDER THE REORGANIZATION MOST CREDITORS WILL BE REPAID OVER TIME WITH NEWLY ISSUED STOCK NEW DEBT AND CASH THE HOUSTONBASED CONVENIENCE STORE OPERATOR SAID SECURED CREDITORS WITH 173 MILLION IN CLAIMS WILL BE PAID IN FULL OVER TIME WITH INTEREST UNSECURED CREDITORS WITH 75 MILLION IN CLAIMS WILL GAIN A COMBINATION OF NEW STOCK NOTES AND CASH FOR A RECOVERY RATE OF 50 TO 80 HOLDERS OF 40 MILLION IN SENIOR SUBORDINATED DEBENTURES WILL RECOVER 39 TO 42 OF THEIR CLAIMS IN STOCK AND WARRANTS HOLDERS OF 19 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES GAIN STOCK AND WARRANTS ESTIMATED AT 11 OF THEIR CLAIM THE SIX MILLION PREFERRED SHARES AND 215 MILLION COMMON SHARES WILL BE LIQUIDATED WITH HOLDERS RECEIVING 90000 COMMON SHARES OR 15 OF THE SIX MILLION NEW COMMON SHARES TO BE ISSUED 9302250045 930225 TECHNOLOGY MORE TESTS ARE ORDERED FOR RIVAL HDTV SYSTEMS WASHINGTON A GOVERNMENT PANEL ORDERED FURTHER TESTS OF THE FOUR SYSTEMS COMPETING TO BE THE US STANDARD FOR HIGHDEFINITION TELEVISION BUT URGED THE OWNERS TO MERGE THEIR TECHNOLOGIES INTO A SINGLE SYSTEM THE FEDERAL COMMUNICATIONS COMMISSION'S ADVISORY COMMITTEE ON ADVANCED TELEVISION ORDERED TESTS ON IMPROVEMENTS PROPOSED BY OWNERS OF EACH SYSTEM FOR THE PAST MONTH THE OWNERS HAVE BEEN DISCUSSING AN ALLIANCE THE COMMITTEE HOPES AN AGREEMENT CAN BE REACHED BEFORE THE TESTS BEGIN IN APRIL A MERGER WOULD END THE POSSIBILITY THAT A LOSING PARTY WOULD APPEAL THE FCC'S DECISION RICHARD WILEY A FORMER FCC CHAIRMAN WHO HEADS THE ADVISORY COMMITTEE SAID THE PANEL BELIEVES THAT A GRAND ALLIANCE' OF THE SYSTEMS MIGHT MORE EFFECTIVELY AND RAPIDLY ADVANCE THE ESTABLISHMENT OF AN HDTV BROADCAST STANDARD IN THIS COUNTRY THE RIVAL SYSTEMS INCLUDE TWO DEVELOPED BY GENERAL INSTRUMENTS CORP AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THE THIRD IS OWNED BY A TEAM OF ZENITH ELECTRONICS INC AND AMERICAN TELEPHONE & TELEGRAPH CO AND THE FOURTH SYSTEM IS OWNED BY A TEAM THAT INCLUDES THE DAVID SARNOFF RESEARCH CENTER THE US UNITS OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THOMSON SA OF FRANCE THE NBC UNIT OF GENERAL ELECTRIC CO AND COMPRESSION LABS INC ALL OF THE SYSTEMS ARE DIGITAL MEANING THAT THEY TRANSMIT SIGNALS IN THE 1S AND 0S OF COMPUTER CODE 9302250044 930225 BUSINESS BRIEF CHESAPEAKE ENERGY CORP HOLDER FILES SUIT CHARGING PROSPECTUS LACKED FULL DATA CHESAPEAKE ENERGY CORP SAID A SHAREHOLDER FILED A LAWSUIT AGAINST IT CLAIMING THE OKLAHOMA CITY COMPANY DIDN'T ADEQUATELY TELL SHAREHOLDERS ENOUGH ABOUT CERTAIN LITIGATION WHEN THE COMPANY WENT PUBLIC THREE WEEKS AGO THE LAWSUIT WHICH SEEKS CLASS ACTION STATUS WAS FILED FEB 19 IN US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN IT THE SHAREHOLDER CLAIMS CHESAPEAKE'S PROSPECTUS FOR ITS INITIAL PUBLIC OFFERING EARLIER THIS MONTH DIDN'T FULLY DISCLOSE A THENPENDING CASE IN OKLAHOMA STATE COURT CHESAPEAKE HAS SINCE LOST THE ENID OKLA CASE WITH A STATE COURT JURY ON FEB 12 RENDERING A 22 MILLION JUDGMENT AGAINST ONE OF ITS UNITS AND CHESAPEAKE'S TWO PRINCIPAL EXECUTIVE OFFICERS THE OKLAHOMA LAWSUIT HAD CLAIMED THE TWO EXECUTIVES AND THE COMPANY MISREPRESENTED HOW MUCH THEY HAD INVESTED IN OIL AND GAS ACREAGE SOLD TO A DRILLING CONTRACTOR AND A WELL OPERATOR A CHESAPEAKE SPOKESMAN SAID THE COMPANY WILL APPEAL THE OKLAHOMA JUDGMENT AND THAT THE OFFICERS INVOLVED AGREED TO INDEMNIFY THE COMPANY AGAINST ALL LIABILITY FOR THE JUDGMENT IN ADDITION HE SAID CHESAPEAKE BELIEVES THE SHAREHOLDER LAWSUIT IN NEW YORK IS WITHOUT MERIT 9302250043 930225 HIRING ACTIVITY IS SEEN STRONGER IN SECOND QUARTER MILWAUKEE HIRING ACTIVITY IN THE SECOND QUARTER SHOULD BE THE STRONGEST IN MORE THAN THREE YEARS A QUARTERLY JOB OUTLOOK SURVEY SUGGESTS THE LATEST MANPOWER INC CANVASS OF 15000 COMPANIES PROJECTS THAT IN THE SECOND QUARTER ON A SEASONALLY ADJUSTED BASIS 16 MORE EMPLOYERS WILL ADD TO THEIR WORK FORCE THAN PLAN TO REDUCE STAFF THAT NETHIRING GAIN COMPARES WITH 12 IN THE PREVIOUS QUARTER AND IS THE HIGHEST SINCE A 17 NETHIRING INCREASE IN THE FIRST QUARTER OF 1990 IT APPEARS WE ARE HEADED FOR A REAL INCREASE SAID MITCHELL FROMSTEIN PRESIDENT OF THE EMPLOYMENTSERVICES CONCERN EMPLOYERS ARE NOW PLANNING NEW STAFFING BEYOND THE SEASONAL VARIATIONS OF THE PAST TWO YEARS HE ALSO NOTED THAT THE NUMBER OF FIRMS PLANNING STAFF REDUCTIONS HAS DECLINED SIGNIFICANTLY IN RECENT MONTHS ON AN UNADJUSTED BASIS 26 OF THE FIRMS SAID THEY WILL INCREASE STAFF LEVELS DURING THE NEXT THREE MONTHS AND ONLY 7 SAID THEY PLAN TO REDUCE STAFF ANOTHER 65 REPORTED THEY WILL REMAIN AT CURRENT LEVELS AND 2 SAID THEY WEREN'T CERTAIN YET OF THEIR HIRING INTENTIONS GEOGRAPHICALLY DIFFERENCES IN THE HIRING OUTLOOK CONTINUED TO PREVAIL WITH THE MIDWEST AND THE SOUTH BOTH CONTINUING STRONG WITH NETHIRING GAINS OF 18 PROJECTED IN THE NORTHEAST AND THE WEST THE NETHIRING INCREASE WAS 12 BY SECTOR THE SURVEY SUGGESTS THAT WHOLESALE AND RETAIL TRADE ANTICIPATES THE STRONGEST NETHIRING ACTIVITY FOLLOWED BY THE CONSTRUCTION DURABLEGOODS MANUFACTURING AND SERVICES SECTORS THE OUTLOOK CONTINUES TO BE WEAKEST FOR HIRING IN EDUCATION AND PUBLIC ADMINISTRATION 9302250042 930225 MARKETING BRIEF NOTED ENTERTAINMENT BLOCKBUSTER ENTERTAINMENT CORP AND CBS INC ARE EXPECTED TO ANNOUNCE PLANS TODAY TO PRODUCE AND DISTRIBUTE FREE VIDEOTAPES CONTAINING PREVIEWS OF FUTURE CBS TV PROGRAMS MOVIES AND MUSIC RELEASES THE SOCALLED HOT PICKS VIDEOTAPES ARE TO BE DISTRIBUTED NATIONWIDE THROUGH BLOCKBUSTER'S 3127 VIDEORENTAL STORES BEGINNING IN JUNE THE COMPANY HAS TESTED THE CONCEPT IN MEMPHIS TENN NEW YORK AND BOSTON FOR THE PAST SIX MONTHS SAID STEVEN BERRARD VICE CHAIRMAN OF BLOCKBUSTER PUBLISHING PRICE STERN SLOAN INC SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER MORTON MINT 47 HAD LEFT THE COMPANY IT WOULDN'T SAY WHY HE RELINQUISHED THE POST HE JOINED THE COMPANY LAST APRIL MR MINT HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF VIKING/PENGUIN USA THE CHIEF EXECUTIVE POST WILL BE RESUMED BY L LAWRENCE SLOAN THE COMPANY'S CHAIRMAN UNTIL DIRECTORS CAN CHOOSE A SUCCESSOR 9302250041 930225 EFFORT TO FIGHT LOAN BIAS GETS CONFLICTING REVIEWS WASHINGTON FEDERAL FINANCIAL REGULATORS SAID THEY ARE MAKING GAINS IN CRACKING DOWN ON MORTGAGELENDING BIAS BUT SEVERAL ADVOCACY GROUPS SAY ENFORCEMENT EFFORTS ARE INADEQUATE THIS CLASH OF VIEWS EMERGED DURING A CONGRESSIONAL HEARING ON SOCALLED REDLINING THE SYSTEMATIC REFUSAL TO LEND TO MANY MINORITY LOWINCOME PEOPLE SEPARATELY A HOUSE CONSUMER CREDIT AND INSURANCE SUBCOMMITTEE HEARD TESTIMONY THAT MANY INSURERS HAVE REFUSED TO WRITE AUTO HOME OR OTHER TYPES OF POLICIES TO MINORITIES TESTIFYING BEFORE THE SENATE BANKING COMMITTEE JOHN LAWARE A FEDERAL RESERVE BOARD GOVERNOR SAID THE BOARD IS DOING A BETTER JOB OF ANALYZING THE HOME MORTGAGE DISCLOSURE ACT DATA HE SAID IT IS ALSO WORKING WITH THE JUSTICE DEPARTMENT TO TARGET CERTAIN BANKS FOR FAIRLENDING EXAMINATIONS WHERE DATA SUGGEST DISPARATE TREATMENT OF MINORITY APPLICANTS REFERRING CONSUMER COMPLAINTS TO THE JUSTICE AND THE HOUSING AND URBAN DEVELOPMENT DEPARTMENTS AND ASSESSING MONEY PENALTIES BUT ALLEN FISHBEIN GENERAL COUNSEL FOR THE CENTER FOR COMMUNITY CHANGE SAID THE LENDING BIAS PROBLEM HAS BEEN COMPOUNDED BY THE LACK OF VIGOROUS ENFORCEMENT HE SAID REGULATORS INTERPRET NEW LENDING LAWS TOO NARROWLY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IS TO ANNOUNCE TODAY A 55 MILLION PILOT PROGRAM TO HELP PROVIDE MORTGAGES FOR MINORITY LOWINCOME PEOPLE FANNIE MAE WOULD BUY MORTGAGES FROM ORIGINATING LENDERS AND RELAX ITS USUAL REQUIREMENTS FOR BORROWERS 9302250040 930225 MARKETING BRIEF LIBERTY MEDIA CORP CABLE COMPANY REVISES BID FOR HOME SHOPPING SHARES LIBERTY MEDIA CORP WHICH RECENTLY ACQUIRED 75 VOTING CONTROL OF HOME SHOPPING NETWORK INC REVISED ITS BID TO BUY THE SHARES IT DOESN'T ALREADY OWN UNDER THE PLAN HOLDERS WOULD RECEIVE 550 IN CASH AND ONETENTH OF A SHARE OF LIBERTY CLASS A COMMON STOCK FOR EACH HOME SHOPPING SHARE THEY OWN THE EARLIER OFFER WAS FOR 5 IN CASH A DOLLAR'S WORTH OF LIBERTY STOCK AND 3 IN THE STOCK OF A PROPOSED HOME SHOPPING SUBSIDIARY IN OVERTHECOUNTER TRADING YESTERDAY LIBERTY SHARES DROPPED 125 TO 2875 THE CHEYENNE WYO CABLE CONCERN PAID ROUGHLY 180 MILLION IN CASH AND STOCK FOR THE 75 VOTING CONTROL ITS OFFER FOR THE REMAINING 75 MILLION SHARES OUTSTANDING WOULD BE VALUED AT ABOUT 4125 MILLION IN CASH PLUS LIBERTY STOCK VALUED AT ROUGHLY 225 MILLION LIBERTY CITED TAX AND CORPORATE CONSIDERATIONS FOR THE REVISED PROPOSAL BUT THE NEW OFFER WOULD ALSO HELP APPEASE THE REMAINING SHAREHOLDERS SOME OF WHOM HAVE FILED SUIT AGAINST LIBERTY SEEKING TO BLOCK THE MERGER 9302250039 930225 BUSINESS BRIEF NATIONAL INTERGROUP INC FOXMEYER UNIT WINS PACT TO SUPPLY MEDICINE SHOPPE FOXMEYER CORP SAID IT SIGNED A CONTRACT TO SERVE AS THE EXCLUSIVE SUPPLIER TO MEDICINE SHOPPE INTERNATIONAL'S FRANCHISES IN 39 STATES A TRANSACTION IT ESTIMATES WILL GENERATE 15 BILLION IN SALES OVER FIVE YEARS ANALYSTS SAID THE CONTRACT IS SIGNIFICANT FOR THE DALLAS DISTRIBUTOR OF PHARMACEUTICALS WHICH IS 805OWNED BY NATIONAL INTERGROUP INC BECAUSE IT FURTHER REDUCES THE COMPANY'S DEPENDENCE ON PHARMOR INC WHICH PLUNGED INTO BANKRUPTCY PROCEEDINGS LAST AUGUST AFTER SOME TOP EXECUTIVES WERE ACCUSED OF EMBEZZLEMENT PHARMOR ACCOUNTS FOR 121 OF FOXMEYER'S SALES DOWN FROM 16 PRIOR TO THE DISCOUNT RETAILER'S DIFFICULTIES TINA RIZOPOULOS AN ANALYST AT PAINEWEBBER INC IN NEW YORK SAID FOXMEYER APPEARS TO BE FOLLOWING A STRATEGY OF BROADENING ITS CUSTOMER BASE WITH THE NEW AGREEMENT WHITMIRE DISTRIBUTION CORP ANOTHER PHARMACEUTICAL DISTRIBUTOR WILL SERVE AS SUPPLIER FOR ST LOUISBASED MEDICINE SHOPPE'S PHARMACIES IN NINE WESTERN STATES UNDER THE AGREEMENT MEDICINE SHOPPE FRANCHISEES CAN CHOOSE THE DISTRIBUTOR FOR THEIR AREA OR NEGOTIATE SEPARATE AGREEMENTS ON THEIR OWN 9302250038 930225 HEARD ON THE STREET ORION PICTURES' NEW BOND ISSUE BECOMES A STAR AS INVESTORS TURN THE SPOTLIGHT ON CASH FLOW BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK POSTBANKRUPTCY PLAYS IN STOCKS OR BONDS CAN TEST INVESTORS' PATIENCE BUT ORION PICTURES' NEWLY ISSUED 10 BONDS DUE OCTOBER 2001 LOOK ENTICING TO SOME INVESTORS WHAT'S COMPELLING ABOUT THESE JUNK BONDS IS ORION'S HIGHLY VISIBLE CASH FLOW BY THE TIME THE MOVIE MAKER EMERGED FROM BANKRUPTCY COURT LATE LAST YEAR ITS REORGANIZATION PLAN HAD EARMARKED EVERY PENNY OF AFTEREXPENSE CASH FLOW TO GO TO CREDITORS FOR THREE TO SIX YEARS JUST A COUPLE OF MONTHS OLD THE JUNK BONDS HAVE RISEN TO TRADE AT 73 1/8 BID 75 ASKED THAT MEANS THE 50 MILLION BOND ISSUE CAN BE BOUGHT THROUGH BROKERS FOR ABOUT 75 CENTS ON THE DOLLAR FOR A CURRENT YIELD OF 1333 ORION GOT INTO TROUBLE DESPITE A NUMBER OF BLOCKBUSTERS SUCH AS DANCES WITH WOLVES AND SILENCE OF THE LAMBS HEAVY PRODUCTION AND PROMOTIONAL EXPENSES FOR THESE AND OTHER FILMS WEREN'T OFFSET BY REVENUE FOR MOVIES MAINLY TARGETED FOR HOMEVIDEO AND TV MARKETS ORION TUMBLED INTO BANKRUPTCY COURT IN DECEMBER 1991 AND STAYED THERE FOR ABOUT A YEAR BILLIONAIRE JOHN KLUGE OWNER OF CONGLOMERATE METROMEDIA SPEEDED THE ORION CHAPTER 11 TALKS BY GUARANTEEING 300 MILLION OF ORION'S BANK DEBT PERSONALLY HE ALSO FORGAVE SOME DEBTS ORION HAD OWED TO A METROMEDIA AFFILIATE AND PUMPED CASH INTO THE MOVIE MAKER BY PURCHASING 501 OF NEW STOCK OUTSTANDING FOR 15 MILLION ORION CURRENTLY HAS ABOUT 20 MILLION SHARES OUTSTANDING THEY TRADE UNDER THE SYMBOL ORPC AND CLOSED YESTERDAY AT 3 UNCHANGED FOR NOW THERE ARE NO EARNINGS TO EXCITE INVESTORS NONE ARE EXPECTED UNTIL 1999 WHEN MOST CREDITORS ARE PAID OFF THE REORGANIZATION PLAN CONTAINS A BULLISH NOTE FOR THE 10 BONDS IT ESTIMATES THAT THE ISSUE WILL BE PAID IN FULL BY 1998 THAT IS PRIOR TO MATURITY OUTSIDE THE EXPECTED PAYMENT SCHEDULE THE BONDS COULD BE CALLED AT 88 TODAY ANALYSTS SAY BUT ONLY IF ORION CAN REPLACE THE ISSUE WITH BANK DEBT FINANCED AT THE LONDON INTERBANK OFFERED RATE PLUS 175 KENNETH B ROBINSON SENIOR VICE PRESIDENT AT THE NEW YORK INVESTMENT BANK OF COWEN & CO SAYS THE CALL AT 88 IS UNLIKELY ANYTIME SOON SUCH A RATE IS RESERVED FOR COMPANIES WITH HIGH CREDIT RATINGS HE SAYS AND ORION WOULD HAVE TO REFINANCE SENIOR CREDITORS FIRST HE ADDS THAT FOR HOLDERS OF THE 10 BONDS THE DOWNSIDE RISK IS MINIMAL BECAUSE THE COMPANY CAN'T DO ANYTHING BUT PAY OFF CREDITORS ACCORDING TO A SCHEDULE IF ORION'S CASH FLOW IS GREATER THAN EXPECTED SO MUCH THE BETTER FOR THE CREDITORS IF IT DOES WORSE AND CASH RUNS SHORT CERTAIN COVENANTS PROTECT THE 10 ISSUE'S INTEREST PAYMENTS AT THE EXPENSE OF OTHER CREDITORS IF THERE'S NO CASH LEFT FOR THE SEMIANNUAL INTEREST PAYMENT BONDHOLDERS GET PAID IN KIND WITH MORE BONDS SUCH DISASTERS ARE UNLIKELY ANALYSTS THINK ORION'S ON AN EXPENSE DIET NO CASH GENERATED FROM OPERATIONS CAN BE SPENT ON NEW FILMS OUTSIDE INVESTORS WILL HAVE TO FINANCE THOSE VENTURES HERE'S WHERE MR KLUGE'S ROLE BECOMES CRUCIAL HE COULD BE A CATALYST FOR FILM DEALS ANALYSTS THINK AFTER ALL THE FUTURE VALUE OF HIS STOCK IS TIED TO ORION'S MOVIE LIBRARY AND ITS REJUVENATION I THINK THE VALUE OF THE LIBRARY WILL BE MAINTAINED BY KLUGE FINANCING ADDITIONAL MOVIES PREDICTS MITCH JULIS OF CANYON PARTNERS A BEVERLY HILLS CALIF FIRM SPECIALIZING IN ENTERTAINMENT SECURITIES MEANWHILE ORION HOPES TO RESTORE ITS CASH FLOW AND ITS IMAGE WITH HOLLYWOOD TALENT WITH THE 10 MOVIES IT HAD IN THE CAN BEFORE GOING BELLY UP AMONG THEM ARE LOVE FIELD WHICH WON MICHELLE PFEIFFER A RECENT OSCAR NOMINATION AND ROBOCOP 3 BY THE END OF THE FISCAL YEAR THROUGH FEBRUARY 1995 TWO BIG CREDITOR CLASSESTHE BANKS AND SONY CORP SHOULD BE PAID OFF COMPLETELY ACCORDING TO REORGANIZATION ESTIMATES THAT'S GOOD FOR BONDHOLDERS IF ORION CAN PRODUCE A FEW HOT FILMS IN THE NEXT TWO YEARS CASH FLOW COULD JUMP AND THE BONDS COULD BE UPGRADED FROM TRIPLECMINUS BY STANDARD & POOR'S THE PENNYMINDING ESTIMATES IN THE REORGANIZATION AGREEMENT MAY UNDERSTATE ONE BULLISH FACTOR SAYS K ADAM LEIGHT SENIOR VICE PRESIDENT AT COWEN YOU WILL HAVE MULTIPLE WAYS TO DELIVER MOVIES IN THE NEXT FEW YEARS HE SAYS I THINK THE ESTIMATES FOR THE FILM LIBRARY REVENUE ARE GOING TO BE LOW MR JULIS OF CANYON SEES SOME RISKS HOWEVER HE WONDERS IF ORION HAS THE FULL INSTITUTIONAL SUPPORT OF METROMEDIA THOUGH THE 78YEAROLD MR KLUGE CLEARLY HAS A PERSONAL INTEREST IN FILMMAKING MR JULIS WORRIES THAT FOREIGN TV AND FILM REVENUE COULD MISS TARGETS BUT LET'S SAY THE SUBDUED ESTIMATES OF THE REORGANIZATION PLAN HOLD TRUE THE BONDS GET FULLY REPAID BY FEBRUARY 1998 THAT EQUALS AN AVERAGE ANNUAL RETURN OF 1776 FOR THE NEXT FIVE YEARS MR ROBINSON OF COWEN FIGURES BEFORE A TAX FACTOR CALLED ORIGINALISSUEDISCOUNT THAT SHAVES RETURNS THE ORION BONDS ARE BASICALLY A BET ON THE GLOBALIZATION OF ENTERTAINMENT AND MR KLUGE'S ABILITY TO FIND FINANCING FOR A FEW HOT SCRIPTS IT'S A REASONABLE BET SAYS MR JULIS 9302250037 930225 BUSINESS BRIEF BROOKE GROUP LTD BGLS INC SUBSIDIARY SETTLES SUIT AGAINST LIBERTY SERVICES BROOKE GROUP LTD SAID ITS BGLS INC UNIT SETTLED A SUIT AGAINST LIBERTY SERVICES CORP CURRENTLY MANAGED BY THE RESOLUTION TRUST CORP BROOKE GROUP WHICH RECENTLY SUSPENDED ITS QUARTERLY 14 CENTS A SHARE DIVIDEND SAID IT WOULD REALIZE A 75 MILLION PRETAX GAIN IN THE FIRST QUARTER FROM THE SETTLEMENT IN 1992 THE COMPANY REPORTED A NET LOSS OF 166 MILLION OR 72 CENTS A SHARE ON REVENUE OF 2521 MILLION THE SETTLEMENT CALLS FOR THE CANCELLATION OF ABOUT 48 MILLION OF JUNIOR SUBORDINATED SECURED NOTES OF BGLS INC THE WAIVER OF PAYMENT OF ALL ACCRUED INTEREST ON SUCH NOTES A 15 MILLION PAYMENT TO BGLS AND THE DISMISSAL OF ALL CLAIMS IN THE LITIGATION LIBERTY SERVICES HAD SUED BGLS FOR PAYMENT OF THE DEBT AND BGLS HAD COUNTERSUED BROOKE GROUP HAS INTERESTS IN COMPUTER PRODUCTS TRADING CARDS AND THROUGH ITS LIGGETT GROUP INC UNIT SELLS CIGARETTES UNDER BRAND NAMES SUCH AS CHESTERFIELD L&M AND LARK 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 9302250036 930225 WHAT'S NEWS WORLDWIDE MAJOR WELCOMED CLINTON'S BOSNIA PLAN BUT SAID BRITAIN WON'T JOIN IT THE BRITISH PRIME MINISTER SAID THE US DECISION TO AIRDROP RELIEF SUPPLIES INTO BOSNIA WAS THOROUGHLY WELCOME BUT REPEATED THAT HIS GOVERNMENT WON'T PARTICIPATE AFTER A MEETING AT THE WHITE HOUSE MAJOR SAID BRITAIN WOULD CONTINUE TO HELP DISTRIBUTE BOSNIAN AID ON THE GROUND MAJOR SAID HE AND CLINTON DISCUSSED THE POSSIBILITY OF TIGHTER SANCTIONS AGAINST SERB FORCES CLINTON DESCRIBED THE PLANNED AIRLIFT AS PURELY A RELIEF OPERATION AND SAID SERB WARNINGS THAT IT WAS THE BEGINNING OF A GREATER AMERICAN MILITARY ROLE IN THE REGION WERE GROUNDLESS CANADA'S MULRONEY SAID HE WOULD STEP DOWN AS PRIME MINISTER THE CANADIAN LEADER DOGGED BY A THREEYEAR RECESSION AND LOW APPROVAL RATINGS RESIGNED AFTER 8 1/2 YEARS AS PRIME MINISTER THE ANNOUNCEMENT WHICH IS EXPECTED TO BOOST HIS CONSERVATIVE PARTY'S CHANCE FOR REELECTION FOLLOWED MONTHS OF SPECULATION ABOUT HIS FUTURE MULRONEY 53 SAID HE WOULD STEP DOWN AS SOON AS THE PARTY PICKS HIS SUCCESSOR IN HIS REMAINING MONTHS IN OFFICE MULRONEY WILL PRESS FOR PASSAGE OF A BILL TO IMPLEMENT THE NORTH AMERICAN FREE TRADE ACCORD PARLIAMENT IS EXPECTED TO APPROVE THE BILL BY THIS SUMMER CHRISTOPHER CONCLUDED WEEKLONG TALKS IN THE MIDEAST WITHOUT ANNOUNCING A TIMETABLE FOR RESUMING ARABISRAELI NEGOTIATIONS BUT THE SECRETARY OF STATE SAID IN JERUSALEM THAT HE HOPED TO SET A DATE SOON DURING HIS TRIP CHRISTOPHER GAVE THE PALESTINIANS UNDISCLOSED US PROPOSALS TO SOLVE A DISPUTE OVER ISRAELI DEPORTATIONS THE HOUSE VOTED TO EXTEND FEDERAL UNEMPLOYMENT BENEFITS FOR SIX MONTHS ALLOWING THE JOBLESS TO RECEIVE EMERGENCY AID UNTIL NEXT JAN 15 TWENTYSEVEN REPUBLICANS JOINED 227 DEMOCRATS IN BACKING THE MEASURE WHICH WAS SEEN AS AN EARLY REFERENDUM ON CLINTON'S ECONOMICSTIMULUS PACKAGE SOMALIS HURLED ROCKS AT USLED TROOPS BLOCKADED STREETS AND ATTACKED TWO EMBASSIES IN MOGADISHU TO PROTEST A VICTORY BY A RIVAL WARLORD WHO THEY CLAIMED WAS HELPED BY THE COALITION FORCES REPORTS PUT CASUALTIES AT UP TO FIVE SOMALIS KILLED AND AT LEAST TWO US MARINES WERE INJURED NORTH KOREA PROBABLY IS HIDING EVIDENCE OF NUCLEAR WEAPONS ACTIVITY FROM INSPECTORS INCLUDING ENOUGH MATERIAL TO MAKE AT LEAST ONE NUCLEAR WEAPON CIA CHIEF WOOLSEY SAID AN AGENCY OFFICIAL SAID THE NORTH KOREANS HAVE BEEN EXPERIMENTING WITH BIOLOGICAL WEAPONS ISRAEL MAY HAVE PRODUCED AS MANY AS 200 NUCLEAR WEAPONS AND HAS URANIUM STOCKS TO LAST 200 YEARS ACCORDING TO ESTIMATES BY RUSSIA'S INTELLIGENCE SERVICES THE ASSESSMENT WAS INCLUDED IN A REPORT RELEASED ON CAPITOL HILL BY A CIAFUNDED DATA SERVICE THE SUPREME COURT MADE IT TOUGHER FOR FEDERAL PROSECUTORS TO CONFISCATE PROPERTY THEY BELIEVE WAS ACQUIRED WITH DRUG MONEY THE 63 RULING WILL ALLOW THIRD PARTIES WHO RECEIVE TAINTED MONEY TO FIGHT SEIZURE OF THEIR PROPERTY BY ASSERTING THEY WEREN'T AWARE OF THE PURPORTED ORIGIN OF THE FUNDS A LOS ANGELES JUDGE DENIED MISTRIAL MOTIONS IN THE RODNEY KING BEATING TRIAL RULING THAT EVIDENCE ALLEGING PREJUDICE BY A BLACK JUROR WASN'T SUFFICIENT THE JUDGE ALSO REJECTED AN EFFORT BY A DEFENDANT TO HAVE HIS CASE SEVERED FROM THE OTHERS FOUR WHITE POLICEMEN ARE CHARGED WITH VIOLATING THE CIVIL RIGHTS OF BLACK MOTORIST KING THE MAKER OF RU486 BELIEVES THE SOCALLED ABORTION PILL SHOULD BE MADE AVAILABLE IN THE US THE FDA'S KESSLER SAID BUT HE SAID THE COMPANY ROUSSELUCLAF OF FRANCE DOESN'T WANT TO BE INVOLVED IN TESTING OR MARKETING THE DRUG IN THE US TWO STUDIES CONFIRMED THAT PHYSICALLY FIT MEN HAVE A LOWER RISK OF HEART DISEASE AND DEATH THAN SEDENTARY MEN BUT THE STUDIES FELL SHORT OF PROVING THAT A SEDENTARY MAN WHO BEGINS EXERCISING WILL REDUCE HIS HEART DISEASE RISK ASPIN'S PHYSICIANS ARE CONSIDERING THE POSSIBILITY OF USING A PACEMAKER TO DEAL WITH THE DEFENSE SECRETARY'S HEART AILMENT A PENTAGON AIDE SAID ASPIN HAS BEEN HOSPITALIZED SINCE SUNDAY FOR SHORTNESS OF BREATH CUBA HELD ITS FIRST DIRECT GENERAL ELECTIONS IN MORE THAN 30 YEARS OF COMMUNIST RULE BALLOTS OFFERED NO ALTERNATIVE CHOICES TO PRESIDENT CASTRO'S RULING COMMUNIST PARTY AND ITS CANDIDATE LIST TROOPS BACKED BY TANKS BESIEGED ZAIRE'S NATIONAL ASSEMBLY AND SAID LAWMAKERS WOULD BE BLOCKED FROM LEAVING UNTIL BANK NOTES ISSUED BY PRESIDENT MOBUTU ARE ACCEPTED AS LEGAL CURRENCY 9302250035 930225 AMGEN LOWERS PROFIT ESTIMATE STOCK PLUNGES FIRSTPERIOD NET EXPECTED TO TRAIL BY 10 TO 15 PROJECTIONS OF ANALYSTS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL BIOTECHNOLOGY BELLWETHER AMGEN INC SAID IT EXPECTS FIRSTQUARTER NET INCOME TO BE 10 TO 15 BELOW ANALYSTS' EXPECTATIONS SENDING ITS STOCK TUMBLING MORE THAN 25 IN AFTERHOURS TRADING AND CHILLING AN INDUSTRY ALREADY PUMMELED BY BAD NEWS ANALYSTS HAD EXPECTED NET OF 60 CENTS A SHARE AMGEN BASED IN THOUSAND OAKS CALIF BLAMED SLOWERTHANEXPECTED SALES OF ITS NEUPOGEN CANCERTREATMENT DRUG WHICH ACCOUNTS FOR ABOUT 40 OF REVENUE NEUPOGEN SALES ARE RUNNING 30 ABOVE YEAREARLIER LEVELS BUT BELOW THE EXPECTATIONS OF AMGEN AND WALL STREET ANALYSTS PREDICTED THAT THE NEWS ANNOUNCED AFTER THE CLOSE OF MARKETS WOULD TAKE A HEAVY TOLL TODAY ON AMGEN AND OTHER BIOTECH STOCKS AFTER JUMPING 275 TO 4625 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AMGEN SHARES PLUNGED IN AFTERHOURS TRADING THE STOCK WAS QUOTED AT 34 ON REUTERS HOLDINGS' INSTINET SYSTEM AT ABOUT 715 PM EST TWO HOURS LATER IT WAS INDICATED AT 33 BIOTECH STOCKS HAVE BEEN SINKING THIS YEAR PARTLY IN REACTION TO PRESIDENT CLINTON'S ATTACK ON DRUG PRICES AND PARTLY IN RESPONSE TO DISAPPOINTING RESEARCH REPORTED BY COMPANIES SUCH AS SYNERGEN INC AMGEN'S ANNOUNCEMENT CAUSED A TIGHTENING IN THE PIT OF MY STOMACH SAID DAVID K STONE AN ANALYST AT COWEN & CO BOSTON THIS ISN'T THE NEWS WE NEEDED AT THIS JUNCTURE THE GROUP IS ON FIRE SALE AS IT IS THE MARKET IMPACT WILL BE GREATLY MAGNIFIED BY THE JITTERY ENVIRONMENT FOR BIOTECH STOCKS HE PREDICTED LOWELL E SEARS AMGEN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID IT APPEARS THAT SEVERAL FACTORS MAY BE AFFECTING NEUPOGEN SALES INCLUDING SEASONAL VARIABILITY OF SALES CHANGES IN DISTRIBUTOR INVENTORIES AND POSSIBLY THE UNCERTAINTY OF FUTURE HEALTHCARE POLICY SALES BY WHOLESALERS TO HOSPITALS PHYSICIANS AND OTHER BUYERS HAVE RETURNED TO NORMAL LEVELS IN RECENT WEEKS MR SEARS SAID WE'RE HOPEFUL THAT TREND WILL CONTINUE BUT IT WON'T BE ENOUGH TO BRING THE QUARTER BACK IN LINE WITH EXPECTATIONS AMGEN IMMEDIATELY ADVISED ITS SALES FORCE TO FOCUS GREATER EFFORT ON NEUPOGEN AFTER THE DISTURBING SALES INFORMATION BEGAN TO SURFACE LATE TUESDAY SIGNS OF A PROBLEM WERE DETECTED BY SOME ANALYSTS IN AMGEN'S FOURTHQUARTER RESULTS REPORTED EARLIER THIS MONTH THE STOCK PLUNGED 10 THE DAY AFTER THE REPORT WHEN SOME ANALYSTS TOLD INVESTORS THAT PRODUCT SALES WERE LIGHT AMGEN SAID AT THE TIME THAT IT HAD AN ORDERING PROBLEM AND NOT A DEMAND PROBLEM NORMAL WEAKNESS DURING THE DECEMBER HOLIDAY SEASON TENDS TO MASK ANY CHANGES IN ORDERING PATTERNS AMGEN STILL HASN'T NOTICED ANY CHANGES IN PRESCRIBING PATTERNS OR PAYMENT GUIDELINES BY INSURANCE COMPANIES AND OTHER PAYERS MR SEARS SAID BUT COMMON SENSE SUGGESTS AT LEAST THE POSSIBILITY THAT PHYSICIAN BEHAVIOR MAY BE CHANGING BECAUSE OF HEIGHTENED AWARENESS OF HEALTHCARE COSTS HE ACKNOWLEDGED BUT WE DON'T HAVE ANYTHING CONCRETE AT ALL HEALTHCARE POLICY IS BEING SHAKEN FROM TOP TO BOTTOM BY SOME REFORM PROPOSALS BEING KICKED AROUND IN CONGRESS AND THE WHITE HOUSE MR STONE THE ANALYST SAID IT'S CONCEIVABLE THAT SOME BUYERS ARE ACTING IN ADVANCE OF ACTUAL POLICY CHANGES BY SLOWING DRUG PURCHASES SALES OF NEUPOGEN WHICH COSTS AS MUCH AS 1000 FOR A COURSE OF TREATMENT COULD BE VULNERABLE HE SUGGESTED CHEMOTHERAPY PATIENTS RECEIVE AS MANY AS SIX TREATMENT COURSES A YEAR MR STONE SAID HE PLANNED TO CUT HIS 270ASHARE 1993 EARNINGS PROJECTION IN THE WAKE OF AMGEN'S ANNOUNCEMENT BUT LATE YESTERDAY HE WAS STILL MULLING BY HOW MUCH WHAT WE HAVE SO FAR IS A BLIP WHETHER IT REPRESENTS AN UNSTEADINESS IN SALES THAT WILL RESULT IN LOWER AVERAGE GROWTH GOING FORWARD WE JUST DON'T KNOW HE SAID IN 1992'S FIRST QUARTER AMGEN POSTED NET OF 632 MILLION OR 43 CENTS A SHARE FOR ALL OF 1992 NET WAS 3576 MILLION OR 243 A SHARE AFTER A 771 MILLION ONETIME LEGAL AWARD LAST YEAR SALES TOTALED 109 BILLION 9302250034 930225 BUSINESS BRIEF LIPOSOME TECHNOLOGY INC FOURTHPERIOD LOSS IS WIDER THAN FORECAST BY ANALYSTS LIPOSOME TECHNOLOGY INC SAID IT POSTED A SLIGHTLY WIDER THAN EXPECTED FOURTHQUARTER LOSS BECAUSE OF INCREASED DEVELOPMENT COSTS RELATED TO ITS PHARMACEUTICAL PRODUCTS FOR THE QUARTER LIPOSOME OF MENLO PARK CALIF POSTED A NET LOSS OF 45 MILLION OR 24 CENTS A SHARE COMPARED WITH A NET LOSS OF 24 MILLION OR 16 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES ROSE 52 TO 861000 FROM 568000 ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS ESTIMATED LIPOSOME'S LOSS WOULD BE 19 TO 22 CENTS A SHARE A SPOKESMAN FOR LIPOSOME SAID INCREASED DEVELOPMENT COSTS RELATED TO TWO PRODUCTS AMPHOCIL AN ANTIFUNGAL AGENT AND DOXIL A CANCER CHEMOTHERAPY AGENT CONTRIBUTED TO THE WIDER THAN EXPECTED LOSS THE DEVELOPMENTALSTAGE PHARMACEUTICAL COMPANY SAID REVENUE WAS BOLSTERED BY INCREASED SALES IN EUROPE IN NATIONAL OVERTHECOUNTER TRADING LIPOSOME SHARES ROSE 25 CENTS TO 850 9302250033 930225 INTERNATIONAL BRIEF NORMANDY POSEIDON LTD AUSTRALIAN FIRM BUYS STAKE IN PANCONTINENTAL MINING NORMANDY POSEIDON LTD AN AUSTRALIAN MINING COMPANY HAS ACQUIRED A 14 STAKE IN PANCONTINENTAL MINING LTD LINDSAY MACALISTER MANAGING DIRECTOR OF PANCONTINENTAL MINING SAID NORMANDY POSEIDON ADVISED HIM OF THE INVESTMENT BUT HASN'T INDICATED IF IT PLANS TO BUY MORE SHARES OR MAKE A TAKEOVER BID MR MACALISTER SAID BE BELIEVES NORMANDY POSEIDON ACQUIRED 11 OF PANCONTINENTAL FROM CIE GENERALE DES MATIERES NUCLEAIRES OR COGEMA OF FRANCE COGEMA ON TUESDAY SOLD ITS 11 STAKE IN PANCONTINENTAL FOR 98 AUSTRALIAN CENTS A SHARE OR 24 MILLION AUSTRALIAN DOLLARS US168 MILLION THE BUYER OF THAT STAKE HASN'T OFFICIALLY BEEN DISCLOSED DEGUSSA AG OF GERMANY SOLD A 10 STAKE IN PANCONTINENTAL MONDAY TO INVESTMENT INSTITUTIONS PANCONTINENTAL SHARES ROSE NINE CENTS OR 9 TO A108 ON THE AUSTRALIAN STOCK EXCHANGE YESTERDAY ON SPECULATION OF A POSSIBLE TAKEOVER OFFER THE MEDIUMSIZE MINING CONCERN PRODUCES GOLD COAL MAGNESIA TANTALUM COPPER AND ZINC 9302250032 930225 INTERNATIONAL BRIEF ATLAS COPCO AB PROFIT ROSE 14 IN 1992 PRELIMINARY REPORT SAYS ATLAS COPCO AB SAID IN ITS PRELIMINARY EARNINGS REPORT FOR 1992 THAT PRETAX PROFIT AFTER FINANCIAL ITEMS ROSE 14 THE SWEDISH HEAVY MACHINERY AND ENGINEERING CONCERN SAID IT EARNED 103 BILLION KRONOR 1332 MILLION UP FROM 902 MILLION KRONOR A YEAR EARLIER SALES ROSE 65 TO 1601 BILLION KRONOR FROM 1503 BILLION KRONOR THE FIGURES WERE IN LINE WITH MARKET EXPECTATIONS ANALYSTS SAID THE COMPANY PREDICTED THAT PRETAX PROFIT WILL REMAIN AT THE SAME LEVEL IN 1993 WHICH ALSO CONFIRMED ANALYSTS' ESTIMATES BUT IT ADDED THAT A WEAK SALES TREND DATING TO AROUND THE END OF LAST YEAR HAS CONTINUED PARTICULARLY IN EUROPE AND THAT THE FORECAST ASSUMES NO FURTHER REDUCTION IN SALES VOLUME ATLAS ALSO SAID YEAREARLIER COMPARISONS USED IN THE EARNINGS REPORT HAD BEEN RECALCULATED DUE TO A CHANGE IN ACCOUNTING PROCEDURES AND DIFFER FROM DATA PUBLISHED IN THE PRELIMINARY REPORT FOR 1991 9302250031 930225 WHAT'S NEWS BUSINESS AND FINANCE THE BOND RALLY STALLED LEAVING PRICES SHARPLY LOWER THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 3/4 POINT PUSHING THE YIELD UP TO 688 STOCK PRICES SURGED WITH THE DOW JONES INDUSTRIALS CLIMBING 3323 TO 335650 AS BARGAINHUNTERS BOUGHT HEALTHCARE ISSUES THE DOLLAR ROSE THE RECENT TUMBLE IN LONGTERM INTEREST RATES IF SUSTAINED COULD GIVE THE ECONOMY A MORE POWERFUL LIFT THAN CLINTON'S SPENDING PROGRAMS TWO SENATORS PROPOSED THE US INVESTIGATE WHETHER EUROPEAN GOVERNMENTS UNFAIRLY SUBSIDIZE AIRBUS INDUSTRIE AS PART OF A MOVE TO SUPPORT THE TROUBLED US AEROSPACE INDUSTRY CLINTON'S GOAL TO REDUCE THE DEFICIT BY 325 BILLION SHOULD BE A MINIMUM TARGET FOR CONGRESS LEADING DEMOCRATS SAID THEY SAID ANY AMENDMENTS THAT BOOST RED INK MUST BE PAIRED WITH OFFSETTING REVENUES OR SAVINGS DURABLE GOODS ORDERS SLIPPED 17 IN JANUARY BUT ANALYSTS SAID THE MANUFACTURING SECTOR IS STILL IMPROVING NEWCAR SALES ROSE IN MIDFEBRUARY ALTHOUGH SOME DEALERS SAID CLINTON'S TAX PLANS SLOWED SHOWROOM TRAFFIC DELL COMPUTER STOCK SKIDDED 17 AFTER THE PERSONAL COMPUTER MAKER WITHDREW A PROPOSED 200 MILLION STOCK OFFERING AND SKETCHED A GRIM PICTURE OF RENEWED INDUSTRY BLOODLETTING IBM'S CUTBACKS IN 1993 WILL INCLUDE ITS FIRST LAYOFFS IN A HALFCENTURY THE NEWS CAME AS IBM SAID IT WOULD TRIM ITS CORPORATE STAFF BY 500 POSITIONS THREE JAPANESE BROKERAGE FIRMS AGREED TO SETTLE CIVIL CHARGES THAT THEIR US UNITS COMMITTED SECURITIESLAW VIOLATIONS THE SETTLEMENT REPORTEDLY CALLS FOR FINES AND SUSPENSIONS AMGEN SAID IT EXPECTS FIRSTQUARTER PROFIT TO BE 10 TO 15 BELOW EXPECTATIONS PUSHING DOWN THE BIOTECH FIRM'S STOCK 25 IN AFTERHOURS TRADING TIME WARNER'S CHAIRMAN GERALD M LEVIN HAS BEGUN TO DISMANTLE THE BUSINESS RELATIONSHIPS THAT MARKED THE FREEWHEELING CORPORATE CULTURE OF HIS PREDECESSOR STEVEN J ROSS THE US APPARENTLY DROPPED A FIVEYEAR INVESTIGATION INTO CHARGES THAT NORTHROP OFFICIALS MADE ILLEGAL PAYMENTS TO INDUCE SOUTH KOREA TO BUY THE COMPANY'S F20 FIGHTER PLANE CLINTON'S EFFORT TO EASE THE CREDIT CRUNCH INCLUDES MEASURES TO HELP BANKS BOOST LENDING TO A RANGE OF BORROWERS IT ALSO COULD LEAD TO A SECONDARY MARKET FOR COMMERCIAL LOANS MICROSOFT SUFFERED A SETBACK AS THE PATENT OFFICE REJECTED THE COMPANY'S BID TO GAIN A TRADEMARK ON THE WORD WINDOWS WHEN USED TO DESCRIBE PERSONAL COMPUTER SOFTWARE PRODUCTS USX IS EXPECTED TO LEAD INDUSTRY CONTRACT TALKS THAT BEGIN NEXT WEEK WITH THE UNITED STEELWORKERS UNION SHORT INTEREST ROSE IN THE OVERTHECOUNTER STOCK MARKET FOR THE SECOND STRAIGHT MONTH CLIMBING 26 IN MIDFEBRUARY TO 4773 MILLION SHARES BRITISH AEROSPACE REPORTED A 1992 PRETAX LOSS OF 175 BILLION BUT MAY HAVE PUT MANY PROBLEMS BEHIND IT BONDS LEHMAN BROTHERS TREASURY INDEX 499948 OFF 3744 COMMODITIES OIL 2053 A BARREL UP FIVE CENTS DOW JONES FUTURES INDEX 12614 UP 009 SPOT INDEX 12587 UP 038 DOLLAR 11748 YEN UP 040 16263 MARKS UP 00033 9302250030 930225 ABREAST OF THE MARKET INDUSTRIAL AVERAGE ADVANCES 3323 IN A BID TO CATCH UP WITH BONDS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS PUSHED STOCKS SHARPLY HIGHER LIFTING MANY LAGGING STOCKS OUT OF THE DOLDRUMS THE DOW JONES INDUSTRIAL AVERAGE RALLIED 3323 POINTS OR 1 TO 335650 STANDARD & POOR'S 500STOCK INDEX JUMPED 607 OR 14 TO 44087 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 313 OR 131 TO 24250 IT LOOKED LIKE STOCKS WERE TRYING TO CATCH UP WITH THE BOND MARKET'S RECENT POWERFUL RALLY SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA THE BOND MARKET RALLY STALLED YESTERDAY SENDING LONGTERM TREASURY BOND PRICES SHARPLY LOWER YET EVEN AS THE YIELD ON THE TREASURY'S 30YEAR BOND JUMPED TO 688 FROM 682 TUESDAY STOCKS SIZZLED SOME ANALYSTS SAID INVESTORS WERE SHIFTING MONEY OUT OF BONDS WHICH HAVE RACKED UP STUNNING GAINS IN RECENT DAYS AND INTO STOCKS VOLUME ON THE BIG BOARD WAS HEAVY WITH 298860000 SHARES CHANGING HANDS DOWN FROM TUESDAY'S TRADING VOLUME OF 321050000 SHARES ADVANCING ISSUES OUTPACED DECLINERS 1224 TO 697 SOME OF THE BIGGEST WINNERS WERE STOCKS THAT HAVE BEEN CRUSHED RECENTLY ON REAL OR RUMORED PROPOSALS OF THE CLINTON ADMINISTRATION TOBACCO STOCKS WHICH HAVE BEEN DECLINING ON TALK OF A TOBACCO TAX RECOVERED SOME OF THEIR LOSSES PHILIP MORRIS ROSE 2 5/8 TO 66 1/4 AND RJR NABISCO ADDED 5/8 TO 8 3/8 AUTO STOCKS WHICH TUMBLED TUESDAY ON UNFOUNDED SPECULATION ABOUT A CLINTON ADMINISTRATION PROPOSAL TO CAP CONSUMER FINANCE RATES REBOUNDED SMARTLY CHRYSLER RACED UP 2 5/8 TO 38 1/2 FORD GAINED 1 TO 45 7/8 AND GENERAL MOTORS FINISHED UP 7/8 TO 37 3/4 CHRYSLER WAS ALSO HELPED BY SIGNS THAT MIDFEBRUARY CAR AND TRUCK SALES WERE PARTICULARLY STRONG BANK STOCKS WHICH FELL TUESDAY ON SIMILAR CONSUMER CREDIT FEARS ALSO REGAINED THEIR LUSTER CHEMICAL ROSE 1 1/8 TO 41 7/8 BANKAMERICA CHALKED UP 1 1/8 TO 52 AND CITICORP ADDED 3/4 TO 26 1/8 OTHER CREDIT CARD ISSUERS ALSO BENEFITED FIRST USA SOARED 3 1/4 TO 28 1/4 MBNA LEAPT 2 1/4 TO 26 7/8 AND DEAN WITTER DISCOVER & CO PERKED UP 7/8 TO END AT 31 7/8 EVEN BEATENDOWN HEALTHCARE AND DRUG STOCKS SHOWED SOME LIFE FOR A CHANGE WARNERLAMBERT GAINED 2 TO 65 7/8 AND JOHNSON & JOHNSON ADVANCED 2 1/8 TO 42 1/4 DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID STRENGTH IN SOME OF THE MARKET'S LAGGARDS COULD LEAD THE DOW JONES INDUSTRIALS TO OUTPERFORM OTHER MAJOR MARKET INDEXES IN THE WEEKS AHEAD BUT HE CAUTIONED THAT THE GAINS WILL BE LIMITED UNFORTUNATELY THERE'S A SAYING THAT WHEN THE LAGGARDS RUN YOU ARE GETTING CLOSER TO THE END OF THE RALLY HE SAID COMPAQ COMPUTER SLID 2 3/8 TO 45 GOLDMAN SACHS ANALYST DANIEL BENTON LOWERED HIS INVESTMENT RATING ON THE COMPANY TO MARKET PERFORMER FROM BUY MR BENTON SAID HE EXPECTS INVESTOR SENTIMENT TOWARD PERSONAL COMPUTER STOCKS WILL CONTINUE TO SOUR MOREOVER HE SAID THAT FROM HIS CONVERSATIONS WITH THE COMPANY IT APPEARS THAT COMPAQ FEELS LESS COMFORTABLE WITH ITS GROSS MARGINS THE WEAKNESS OF THE DOLLAR AGAINST THE YEN FOR INSTANCE IS MAKING IT MORE EXPENSIVE FOR COMPAQ TO GET COMPONENTS TEXAS INSTRUMENTS CHALKED UP 3 1/8 TO 57 1/2 THE COMPANY SAID IT EXPECTS THE WORLDWIDE SEMICONDUCTOR MARKET TO GROW 17 TO 70 BILLION THIS YEAR MOTOROLA ADDED 1 3/4 TO 58 1/2 HOME DEPOT JUMPED 3 3/4 TO 63 1/4 THE COMPANY WHICH OPERATES HOME IMPROVEMENT STORES DECLARED A 4FOR3 STOCK SPLIT INTERNATIONAL GAME TECHNOLOGY CLIMBED 4 1/2 TO 55 7/8 THE CASINO COMPANY SAID LATE TUESDAY THAT ITS BOARD APPROVED A 2FOR1 STOCK AND AUTHORIZED A THREECENTASHARE QUARTERLY DIVIDEND AFTER THE SPLIT AMERICAN TELEPHONE & TELEGRAPH GAINED 1 3/4 TO 56 1/4 WORLDSPAN TRAVEL INFORMATION SERVICES HAS SIGNED A MULTIYEAR 100 MILLION AGREEMENT WITH AT&T FOR A DATA NETWORK SERVICE CATALINA MARKETING SURGED 4 1/2 TO 34 BOTH PAINEWEBBER AND ROBERTSON STEPHENS BOOSTED THEIR INVESTMENT RATINGS ON THE COMPANY WHICH MAKES ELECTRONIC COUPON MARKETING SYSTEMS NEIMAN MARCUS GROUP SLID 1 1/8 TO 15 1/4 THE RETAILER'S SECONDQUARTER PROFIT SWELLED TO 176 MILLION OR 27 CENTS A SHARE FROM 114 MILLION OR 12 CENTS A SHARE A YEAR EARLIER MOST OTHER RETAIL STOCKS CLIMBED THOUGH WALMART STORES ROSE 2 5/8 TO 62 1/2 DAYTON HUDSON ADDED 1 TO 79 MAY DEPARTMENT STORES RALLIED 2 7/8 TO 71 1/2 AND DILLARD DEPARTMENT STORES ADVANCED 1 1/2 TO 46 1/8 MANY RETAILING STOCKS WERE HAMMERED TUESDAY ON FEARS THAT A BIG DROP IN CONSUMER CONFIDENCE WOULD LEAD TO REDUCED SPENDING BY SHOPPERS CONTINENTAL MEDICAL ADDED 3/4 TO 13 THE COMPANY SAID IT COMPLETED THE ACQUISITION OF KRON MEDICAL A CLOSELY HELD PROVIDER OF TEMPORARY SERVICES FOR DOCTORS CALDOR CLIMBED 2 TO 31 THE RETAILER SAID FOURTHQUARTER PROFIT BALLOONED TO 363 MILLION OR 245 A SHARE FROM 284 MILLION OR 195 A SHARE A YEAR EARLIER ELECTROCOM AUTOMATION GAINED 1 TO 14 1/8 THE MAKER OF DOCUMENT PROCESSING SYSTEMS SAID LATE TUESDAY THAT PROFIT IN THE FOURTH QUARTER GREW TO 68 MILLION OR 25 CENTS A SHARE FROM 47 MILLION OR 18 CENTS A SHARE A YEAR EARLIER THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 345 TO 40341 THERE WERE 300 ADVANCERS AND 254 DECLINERS 9302250029 930225 INTERNATIONAL BRIEF CANON INC EARNINGS FOR 1992 FELL 31 JAPAN EUROPE MARKETS CITED CANON INC A JAPANESE CAMERA AND OFFICE EQUIPMENT MAKER REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT SLID 31 TO 10163 BILLION YEN 8685 MILLION IN 1992 NET INCOME ALSO FELL 31 TO 3590 BILLION YEN AND SALES ROSE 24 TO 191 TRILLION YEN CANON SAID EMERGING MARKETS IN SOUTHEAST ASIA AND CHINA CONTINUED TO GROW IN 1992 WHILE THE US ECONOMY CREPT BACK DURING THE LATER HALF OF THE YEAR BUT IT SAID THOSE BRIGHT SPOTS WERE COUNTERED BY A SLOWDOWN IN WESTERN EUROPE AS WELL AS WEAK DEMAND AND INVESTMENT IN JAPAN THE TOKYO CONCERN CITED YEN APPRECIATION AS A DRAG ON REVENUE IN 1992 BUT NOTED HOWEVER EXPANSION OF LOCAL PRODUCTION IN MALAYSIA THAILAND CHINA AND OTHER ASIAN LOCALES TO MINIMIZE CURRENCYRELATED RISKS CANON SAID IT CAN'T EXPECT TO SEE STRONG GROWTH DURING THE CURRENT YEAR AS THE SLOWDOWN OF THE GLOBAL ECONOMY DRAGS ON TRADING BLOCKS STRENGTHEN THEIR STANCES TOWARD JAPAN AND YEN STRENGTH PERSISTS 9302250028 930225 CREDIT MARKETS BOND RALLY STALLS PRICES DROP AS TREASURY SALE OF FIVEYEAR ISSUES MEET WITH WEAK DEMAND BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET RALLY STALLED YESTERDAY AS THE TREASURY'S FIVEYEAR NOTE AUCTION MET WITH EXTREMELY WEAK DEMAND THE BENCHMARK 30YEAR TREASURY BOND DROPPED 3/4 POINT OR 750 FOR A BOND WITH 1000 FACE VALUE TO 102 31/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 688 FROM 682 ON TUESDAY BEFORE LAST WEEK THE 30YEAR BOND HAD NEVER CLOSED BELOW 710 SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 THE 10YEAR NOTE MEANWHILE DROPPED NEARLY 7/8 POINT TO 101 21/32 TO YIELD 601 UP FROM 590 ON TUESDAY WHEN IT REACHED A 20YEAR LOW THE BOND MARKET HAS COME TOO FAR TOO FAST SAID JOHN FECHTER HEAD GOVERNMENT SECURITIES TRADER AT AG EDWARDS & SONS INC IN ST LOUIS PART OF THE PROBLEM WAS THAT MUCH OF THE BUYING IN RECENT SESSIONS ESPECIALLY TUESDAY WAS FROM DEALERS AND INVESTORS FINDING THEMSELVES FORCED INTO THE MARKET MONEY MANAGERS HAVE HAD TO MOVE OUT OF MORTGAGEDBACKED SECURITIES TO PROTECT THEIR HOLDINGS FROM PREPAYMENT RISK AND TRADITIONAL INSTITUTIONAL BUYERS OF TREASURYS FOUND THEMSELVES CHASING THE MARKET AS NEW CASH POURED INTO THEIR FUNDS MORTGAGEBACKED SECURITIES CAN ACTUALLY LOSE VALUE AS INTEREST RATES DROP THIS IS BECAUSE THEY ARE BACKED BY HOME LOANS THAT CAN BE PREPAID BY HOMEOWNERS IF INTEREST RATES DROP BUT THE BUYING EVAPORATED YESTERDAY AND DEALERS FOUND THEMSELVES BREATHING RARIFIED AIR THE REAL LEGITIMATE INTEREST IN THE MARKET AT THESE LEVELS WAS DEMONSTRATED BY WHAT WE SAW AT THE TWO AND FIVEYEAR NOTE AUCTIONS AND THE INTEREST IS MARGINAL SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC TO MANY DEALERS THE PULLBACK IN PRICES CONFIRMED WHAT HAD BEEN WIDESPREAD SKEPTICISM ABOUT THE LOFTY PRICE LEVELS PEOPLE HAD BEEN RELUCTANT BUYERS ALL ALONG SAID JERRY ZUKWOSKI AN ECONOMIST AT PAINEWEBBER INC BUT THE SETBACK MAY NOT MEAN THE END OF THE BULL RUN I DON'T THINK ANYONE IS YET WILLING TO SAY THIS IS THE END OF WHAT IS A VERY STRONG MARKET SAID MR ZUKOWSKI OF PAINEWEBBER INSTEAD PARTICIPANTS SAID THE DECLINES YESTERDAY WERE SIMPLY REFLECTIVE OF A MARKET THAT BADLY NEEDED TO CONSOLIDATE THE MARKET WAS QUITE A BIT OVEREXTENDED AND OVERBOUGHT SAID MEAD L BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC THE MARKET WAS DUE FOR A BREATHER THE TREASURY'S AUCTION OF 11 BILLION IN FIVEYEAR NOTES DREW MINIMAL DEMAND WITH BOTH TRADERS AND INSTITUTIONAL INVESTORS VIEWING THE ISSUE AS OVERPRICED IT GOT A LITTLE TOO EXPENSIVE SAID MR KENNEY THE TREASURY AWARDED ITS OFFERING OF 11 BILLION IN FIVEYEAR NOTES AT A YIELD OF 523 NOWHERE NEAR THE 516 OR 517 YIELD MOST PLAYERS WERE EXPECTING THE YIELD WAS DOWN SUBSTANTIALLY FROM THE LAST AUCTION IN JANUARY WHEN FIVEYEAR NOTES WERE SOLD AT 566 THE AUCTION WAS CONDUCTED UNDER DUTCH AUCTION RULES WITH THE ENTIRE ISSUE AWARDED AT A SINGLE YIELD REFLECTIVE OF THE GENERAL LACK OF INTEREST IN THE AUCTION WAS THE EXTREMELY LOW BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE AMOUNT OF BIDS TENDERED TO THE NUMBER SUBMITTED THE BIDTOCOVER RATIO YESTERDAY OF ABOUT 199TO1 WAS WELL BELOW THE 275TO1 RATIO POSTED IN JANUARY AND UNDER THE 245TO1 AVERAGE POSTED FOR EACH OF THE FIVE PRIOR DUTCH AUCTIONS WITHOUT BIDDING INTEREST FROM RETAIL CUSTOMERS DEALERS WERE UNWILLING TO END UP WITH FIVEYEAR NOTES AT SUCH HIGH PRICES UNLESS IT WAS TO CLOSE OUT EXISTING POSITIONS THERE'S NOT A LOT OF FAITH IN THE MARKET AT THESE LEVELS FROM THE DEALER COMMUNITY SAID MR BRIGGS OF DEUTSCHE BANK AS A RESULT OF THE TREASURY'S DUTCH AUCTION RULES WHERE THE WHOLE OFFERING IS SOLD AT THE HIGH YIELD HEAVY CONCENTRATION OF BIDS AT THE HIGHER LEVELS SKEWED THE ENTIRE AUCTION WELL AWAY FROM EXPECTATIONS ADDING TO THE MARKET'S NERVOUSNESS YESTERDAY WAS THE EMERGENCE OF CUSTOMERS TAKING PROFITS ON SECURITIES THAT HAD BEEN BOUGHT AT MUCH LOWER PRICES WE WERE INUNDATED WITH PEOPLE WHO HAVE BEEN HOLDING SECURITIES FOR THE LONG TERM SAYING LET'S NOT GET GREEDY LET'S TAKE SOME PROFITS' SAID MR FECHTER AFTER THE AUCTION RESULTS WERE RELEASED AT MIDAFTERNOON THE MARKET FELL FURTHER AND CLOSED NEAR ITS LOWS LATE YESTERDAY THE WHENISSUED FIVEYEAR NOTE WAS YIELDING 523 UP SHARPLY IN YIELD FROM 516 AT THE 1 PM EST AUCTION DEADLINE AND FROM 509 AT THE END OF TRADING TUESDAY ONCE AGAIN ECONOMIC DATA ATTRACTED LITTLE ATTENTION YESTERDAY NEWS THAT DURABLE GOODS ORDERS FELL 17 IN JANUARY BARELY CAUSED A RIPPLE IN THE MARKET TODAY THE MARKET WILL HAVE TO CONTEND WITH THE WEEKLY JOBLESS CLAIMS REPORT THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS CALLS FOR CLAIMS TO RISE 7000 FOR THE WEEK ENDED FEB 13 ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 1 AND MATURE FEB28 1998 DEMAND FOR CORPORATE BONDS REMAINED STRONG YESTERDAY DESPITE WIDESPREAD SELLING OF TREASURYS AS INVESTORS SHIFTED OUT OF MORTGAGE SECURITIES AND BOUGHT NEW CORPORATE BONDS SEASONED ISSUES ENDED 1/8 POINT TO 5/8 POINT LOWER ECHOING THE SELLOFF IN THE TREASURY MARKET BUT THE UNDERLYING MARKET TONE REMAINED BULLISH FOR CORPORATE BONDS AS ILLUSTRATED BY YIELD RELATIONSHIPS TO TREASURYS TRADERS AND INVESTORS SAID THE SELLOFF IN THE TREASURY MARKET DID LITTLE TO THWART THE SUPPLY OF CORPORATE BONDS A WIDE ARRAY OF INDUSTRIALS INSURANCE COMPANIES AND UTILITIES OFFERED NEARLY 2 BILLION OF NEW DEBT AND BORROWERS SHOWED A PREFERENCE FOR LONGERDATED DEBT AS WELL NEARLY ONE OUT OF EVERY TWO BONDS PRICED YESTERDAY MATURED IN 30 YEARS OR LONGER SYNDICATE OFFICIALS SAID THAT WAS NOT SURPRISING CONSIDERING HOW LONGTERM RATES HAVE FALLEN MORE THAN 040 PERCENTAGE POINT SINCE JAN 1 MORE THAN 7 BILLION OF NEW DEBT HAS BEEN PRICED THIS WEEK AND MUCH MORE IS IN THE PIPELINE DEALERS SAID INDUSTRIAL COMPANIES WERE AMONG THE MOST ACTIVE BORROWERS TODAY DU PONT CO PRICED 250 MILLION OF 40YEAR DEBENTURES WHILE DOW CHEMICAL CO RAISED 150 MILLION THROUGH THE SALE OF 30YEAR DEBENTURES USX CORP SOLD 150 MILLION OF 30YEAR DEBENTURES INVESTOR DEMAND TENDED TO BE STRONGEST FOR COMPANIES RATED TRIPLEB OR A LOW SINGLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THAT'S WERE YOU CAN STILL PICK UP SOME YIELD SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL BOND FUND BUT YOU STILL HAVE WATCH OUT FOR CREDIT QUALITY PROBLEMS SELLERS CAME INTO THE MUNICIPAL BOND MARKET FOR THE FIRST TIME IN NEARLY TWO WEEKS AND NUDGED DOWN PRICES OF SOME BONDS 1/4 POINT OR MORE AT YESTERDAY'S CLOSE RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP'S 525 SERIES B BONDS OF 2021 WERE 1/4 POINT LOWER AT 93 3/4 TO YIELD 566 WHILE SOME MUNIS FALTERED THE MARKET IS HARDLY IN A WORRISOME CONDITION PRIOR TO YESTERDAY'S SLIP PRICES LEAPED FOR SIX CONSECUTIVE TRADING DAYS AND MUNI ANALYSTS SAY THE MARKET STILL HAS MORE ROOM TO RISE ON CONCERNS ABOUT THE HIGHER PERSONAL INCOME TAXES THAT ARE BEING SOUGHT BY PRESIDENT CLINTON WHILE THAT DEMAND WASN'T EVIDENT IN THE SECONDARY MARKET THERE WAS CONTINUED STRONG BUYING INTEREST IN PRIMARY DEALINGS AMONG THE ISSUES PRICED WAS THE STANFORD UNIVERSITY HOSPITAL OF CALIFORNIA'S SERIES 1993 CERTIFICATES OF PARTICIPATION WHICH WERE BROUGHT TO THE MARKET BY A MORGAN STANLEY & CO GROUP DUE TO SOLID DEMAND THE TOTAL AMOUNT OF THE OFFERING WAS RAISED TO 98 MILLION FROM 73 MILLION AND YIELDS FOR MOST BONDS WERE TRIMMED 002 TO 015 PERCENTAGE POINT YIELDS NOW RANGE FROM 210 IN 1993 TO 559 IN 2020 THE ORIGINAL SCALE OF YIELDS WAS 225 IN 1993 TO 563 IN 2017 FOR THE FIRST TIME IN SEVERAL SESSIONS MORTGAGE SECURITIES DIDN'T UNDERPERFORM TREASURYS BUT YESTERDAY'S PRICE TREND IS EXPECTED TO BE SHORTLIVED IN SECONDARY TRADING OF 75 ISSUES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 21/32 LOWER AT 103 5/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 23/32 LOWER AT 102 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES LOST 23/32 TO TRADE AT 102 22/32 TENYEAR TREASURY NOTES FELL NEARLY 7/8 POINT FOR A 602 YIELD IN THE PAST FEW DAYS MORTGAGE SECURITIES SUBSTANTIALLY UNDERPERFORMED TREASURYS BECAUSE OF CONCERNS THAT FALLING INTEREST RATES MAKE RISING EARLY PREPAYMENTS INEVITABLE LOWER INTEREST RATES MEAN LOWER MORTGAGE RATES MORE HOME SALES AND STEPPEDUP REFINANCINGS ALL OF THAT BODES POORLY FOR HOLDERS OF MOST MORTGAGE SECURITIES WHICH LOSE VALUE WHEN THEY ARE PREPAID EARLY THE PRIMARY MARKET SAW THREE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS TOTALING 12 BILLION ANNOUNCED COLLATERAL USED WAS FANNIE MAE 7 ISSUES FREDDIE MAC 75 ISSUES AND FANNIE MAE 15YEAR 75 ISSUES 9302250027 930225 BUSINESS BRIEF CADMUS COMMUNICATIONS CORP PROFIT INCREASE IS EXPECTED FOR THE FISCAL THIRD QUARTER CADMUS COMMUNICATIONS CORP EXPECTS A TREND OF EARNINGS INCREASES TO CONTINUE IN ITS THIRD QUARTER ENDING MARCH 31 ACCORDING TO STEVE GILLISPIE PRESIDENT AND CHIEF EXECUTIVE OFFICER THE RICHMOND VA GRAPHIC COMMUNICATIONS COMPANY HAD NET INCOME OF 11 MILLION OR 18 CENTS A SHARE ON SALES OF 47 MILLION IN THE YEAREARLIER PERIOD MR GILLISPIE ALSO SAID THE COMPANY DOESN'T EXPECT RESULTS FOR THE YEAR ENDING JUNE 30 TO DISAPPOINT ANALYSTS WHO HAVE PREDICTED THAT CADMUS WILL EARN ABOUT 45 MILLION OR 75 CENTS A SHARE THAT ESTIMATE WOULD BE CONSISTENT WITH THE COMPANY'S GOAL OF 15 GROWTH IN EARNINGS ANNUALLY WHICH MR GILLISPIE SAID IS REALISTIC AND ACHIEVABLE IN FISCAL 1992 CADMUS EARNED 39 MILLION OR 65 CENTS A SHARE MR GILLISPIE DECLINED TO FORECAST SALES GROWTH BUT HE SAID HE EXPECTS SALES IN THE CURRENT YEAR TO EXCEED THE 188 MILLION OF A YEAR EARLIER 9302250026 930225 INTERNATIONAL BRIEF AKZO NV YEAR'S NET ROSE 11 ON DROP IN EXTRAORDINARY CHARGES AKZO NV'S NET INCOME ROSE 11 IN 1992 TO 646 MILLION GUILDERS 3542 MILLION OR 1405 GUILDERS A SHARE FROM 1991'S TOTAL OF 580 MILLION GUILDERS OR 1262 GUILDERS A SHARE BUT THE IMPROVEMENT LARGELY REFLECTED A SHARP DROP IN EXTRAORDINARY CHARGES FROM THE PREVIOUS YEAR SALES AT THE DUTCH CHEMICALS COMPANY WERE FLAT AT 1685 BILLION GUILDERS THE COMPANY DECLARED A 650 GUILDER DIVIDEND FOR 1992 UNCHANGED FROM THE PREVIOUS YEAR DESPITE THE ADVERSE EFFECTS OF A STAGNATING ECONOMY AND THE CURRENCY CRISIS 1992 WAS A SATISFACTORY YEAR AKZO SAID THE COMPANY ADDED THAT THE IMPROVEMENT IS IN PART ATTRIBUTABLE TO A CONSISTENT IMPLEMENTATION OF THE STRATEGIC PLANS AND STRINGENT COST CONTROL BUT THE BIG RISE IN AKZO'S NET PROFIT WAS MAINLY BECAUSE THE COMPANY CHARGED OFF JUST 66 MILLION GUILDERS AGAINST EARNINGS MOSTLY REFLECTING PROVISIONS SET UP TO MEET RESTRUCTURING COSTS THAT TOTAL WAS DOWN FROM THE 111 MILLION GUILDERS OF CHARGES RECORDED FOR 1991 9302250025 930225 INTERNATIONAL BRIEF ALL NIPPON AIRWAYS CO INTERNATIONAL ROUTE CHANGES EXPECTED TO IMPROVE RESULTS ALL NIPPON AIRWAYS CO A MAJOR JAPANESE AIRLINE ANNOUNCED A RESTRUCTURING OF ITS INTERNATIONAL FLIGHT OPERATIONS A SPOKESWOMAN SAID ANA WILL ELIMINATE OR LOWER THE FREQUENCY OF ROUTES WITH SLACK DEMAND WHILE ADDING SOME ROUTES AND BOOSTING THE FREQUENCY OF OTHERS SHE SAID THE CHANGES SHOULD IMPROVE THE PRETAX RESULTS OF ANA'S INTERNATIONAL OPERATIONS WHICH ARE EXPECTED TO POST A NET LOSS OF 15 BILLION YEN 1282 MILLION DURING THE CURRENT FISCAL YEAR THROUGH MARCH 1993 BY ROUGHLY TWO BILLION YEN NEXT YEAR ANA EXPECTS PROFIT FROM ITS DOMESTIC OPERATIONS TO ALLOW IT TO POST OVERALL PROFIT UNDER THE RESTRUCTURING ANA WILL LOWER ITS TOKYONEW YORK FLIGHTS TO FOUR FROM FIVE A WEEK TOKYOWASHINGTON DC FLIGHTS WILL FALL TO THREE FROM FIVE A WEEK THE COMPANY WILL SUSPEND ITS NAGOYAHONOLULU FLIGHTS AMONG OTHERS ANA WILL ADD A NEW ROUTE BETWEEN TOKYO AND SHANGHAI AND INCREASE FLIGHTS BETWEEN FUKUOKA JAPAN AND DALIEN CHINA 9302250024 930225 BUSINESS BRIEF ORION CAPITAL CORP FOURTHPERIOD NET DECLINED BUT OPERATING PROFIT ROSE ORION CAPITAL CORP REPORTED A 41 DECLINE IN FOURTHQUARTER NET INCOME BECAUSE OF ONETIME ITEMS IN THE YEAREARLIER QUARTER BUT SAID OPERATING PROFIT ROSE 39 HELPED BY AN INCREASE IN PREMIUMS THE NEW YORKBASED SPECIALTY PROPERTY AND CASUALTY INSURER REPORTED NET OF 95 MILLION OR 84 CENTS A SHARE COMPARED WITH 162 MILLION OR 180 A SHARE IN THE YEARAGO QUARTER REVENUE FELL TO 1679 MILLION FROM 2093 MILLION LAST YEAR'S RESULTS INCLUDED A GAIN ON THE SALE OF STOCK IN GUARANTY NATIONAL CORP AN ENGLEWOOD COLO INSURER AND A CHARGE FOR BOOSTING RESERVES FOLLOWING AN INDEPENDENT ACTUARIAL STUDY EXCLUDING THESE ITEMS OPERATING EARNINGS DURING THE PERIOD ROSE 39 TO 126 MILLION OR 114 A SHARE FROM 91 MILLION OR 91 CENTS A SHARE ORION CAPITAL SHARES ROSE 1625 YESTERDAY TO 38875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9302250023 930225 INTERNATIONAL BRIEF MAYNE NICKLESS LTD PROFIT IN FISCAL FIRST HALF DROPPED 66 TO 331 MILLION MAYNE NICKLESS LTD AN AUSTRALIAN TRANSPORTATION SECURITY AND HEALTHCARE COMPANY REPORTED THAT PROFIT DROPPED 66 TO 474 MILLION AUSTRALIAN DOLLARS US331 MILLION IN ITS FIRST HALF ENDED JAN 3 BUT THE YEAREARLIER RESULT INCLUDED A A103 MILLION ABNORMAL OR UNUSUAL PROFIT FROM SELLING AN INVESTMENT IN AMCOR LTD THE LATEST RESULT DOESN'T INCLUDE ANY ABNORMAL ITEMS MAYNE NICKLESS SAID PROFIT BEFORE ABNORMAL ITEMS FELL 22 EARNINGS BEFORE INTEREST AND TAX INCREASED 15 TO A856 MILLION DIRECTORS SAID BUSINESS CONDITIONS REMAINED FLAT IN MANY OF THE COUNTRIES IN WHICH MAYNE NICKLESS OPERATES THE INCREASE IN SALES REVENUE REFLECTS ACQUISITIONS REVENUE FROM MOST BUSINESSES GENERALLY WAS MAINTAINED IN DIFFICULT CONDITIONS THEY SAID IN A STATEMENT DIRECTORS SAID ANY IMPROVEMENT IN WORLD MARKETS SHOULD BENEFIT MAYNE NICKLESS IN THE SHORT TERM ALTHOUGH THEY EXPECT A SLOW RECOVERY IN WORLD ECONOMIES 9302250022 930225 TOXIC DUMP ARSENAL OF POISON GAS LANGUISHES AS RUSSIA IS UNABLE TO DESTROY IT LEADERS' EFFORTS ARE BLOCKED BY ANGRY POPULACE LACK OF CASH AND KNOWHOW US TAXPAYERS MAY FOOT BILL BY KAREN ELLIOTT HOUSE AND PHILIP REVZIN STAFF REPORTERS OF THE WALL STREET JOURNAL KAMBARKA RUSSIA JUST OUTSIDE THIS TRANSSIBERIAN FACTORY TOWN TWO SHIVERING SENTRIES IN WOODEN TOWERS GUARD A CAMP HOUSING 80 CORRODING STORAGE TANKS THE TANKS HOLD 6300 TONS OF CHEMICAL WEAPONS MORE THAN ENOUGH TO KILL THE ENTIRE POPULATION OF RUSSIA TOWNSPEOPLE ANGRY AND AFRAID AFTER BEING DUPED FOR NEARLY 50 YEARS ABOUT KAMBARKA'S DEADLY SECRET WANT THE CHEMICALS SHIPPED OUT ANYWHERE THE RUSSIAN GOVERNMENT WANTS TO BUILD A PLANT TO DESTROY THE CHEMICAL WEAPONS OR MAYBE EVEN TURN THEM INTO COMPUTER CHIPS ONE THING ON WHICH BOTH SIDES AGREE RUSSIANS AREN'T LIKELY TO FOOT THE BILL FOR DESTROYING THESE DEADLY ARMS NO MATTER WHAT HAPPENS THE TOXIC STOCKPILE IN KAMBARKA ABOUT 650 MILES NORTHEAST OF MOSCOW IN THE URAL MOUNTAINS AND A HALFDOZEN SIMILAR ONES SCATTERED ACROSS RUSSIA WILL ALMOST CERTAINLY NEVER BE USED IN A SUPERPOWER WAR BUT DESTROYING THEM IS PROVING FAR MORE COMPLICATED COSTLY AND CONTROVERSIAL THAN EXPECTED HOW RUSSIA AND THE WEST DEAL WITH THE DISMANTLING AND ERADICATION OF NUCLEAR AND CHEMICAL WEAPONS LOOMS AS ONE OF THE LARGEST ALBEIT LEAST KNOWN ENVIRONMENTAL CHALLENGES OF THE 1990S THE DESTRUCTION OF CHEMICAL WEAPONS ALSO WILL BE BIG BUSINESS FOR FOREIGN COMPANIES WHOSE TECHNOLOGIES WILL COST BILLIONS OF DOLLARS FAR MORE THAN THE COST OF MAKING THE WEAPONS THIS BOON TO WESTERN BUSINESS HOWEVER IS LIKELY TO BE A BURDEN TO WESTERN TAXPAYERS WHO WILL HAVE TO HELP FINANCE A LARGELY BANKRUPT RUSSIA'S EFFORTS MOST IMPORTANT THE RUSSIANS ARE BEING STYMIED BY PUBLIC MISTRUST A COUNTRY THAT COULD PRODUCE THESE WEAPONS IN SECRET AND STORE THEM IN SILENCE NOW CANNOT DESTROY THEM PRECISELY BECAUSE DEMOCRACY ALLOWS ITS PEOPLE TO VENT THEIR DOUBTS THAT THE GOVERNMENT CAN SAFELY DISMANTLE THE DANGERS IT CREATED THAT LACK OF CONFIDENCE SEEMS WELLFOUNDED WHILE MOSCOW HAS DISCLOSED TO THE US ALL SEVEN OF ITS STORAGE SITES ONLY FOUR HAVE BEEN MADE KNOWN TO RUSSIANS BECAUSE OFFICIALS FEAR PUBLIC DEMONSTRATIONS ALREADY OPPOSITION HAS FORCED RUSSIA TO HALT WORK ON ITS ONLY FACILITY FOR DESTROYING CHEMICAL WEAPONS IN A TOWN CALLED CHAPAEVSK A FOURHOUR DRIVE FROM KAMBARKA THE SITUATION IS VISIBLY FRUSTRATING TO MEN LIKE BORIS BELOUSSOV ONCE THE SOVIET MINISTER OF DEFENSE PRODUCTION AND NOW IN HIS NEW INCARNATION AS POLITICIANBUSINESSMAN A SUPPLICANT SEEKING PUBLIC SUPPORT FOR RIDDING THE REGION OF THE DANGERS HE HELPED CREATE IN THE PAST NEITHER PRODUCTION NOR DESTRUCTION WAS DISCUSSED IN PUBLIC WE DID IT BY DECREE SAYS THE BURLY WHITEHAIRED FORMER GENERAL AS HE BOUNCES ACROSS THE ICY DIRT ROADS IN HIS SMALL RUSSIANMADE CAR DEMOCRACY STILL SOMETIMES BEWILDERS MR BELOUSSOV 58 YEARS OLD WHO DESCRIBES A LOCAL HOUSEWIFE AT A PUBLIC HEARING RIPPING OPEN HER BLOUSE BARING HER BREASTS AND SHOUTING AT HIM TAKE ME BUT DON'T BUILD A DESTRUCTION FACILITY HERE OVER THE PAST 50 YEARS BOTH SUPERPOWERS PRODUCED VAST QUANTITIES OF CHEMICAL ARMS SO DEADLY THAT A FEW GRAMS ON THE SKIN OR IN THE LUNGS COULD KILL RUSSIAN SCIENTISTS SAY ONLY FIVE GRAMS OF LEWISITE A BLISTER AGENT STORED HERE IS ENOUGH TO KILL A PERSON RUSSIA ACKNOWLEDGES 40000 TONS OF CHEMICAL WEAPONS SOME IN STORAGE TANKS HERE OTHERS IN ARTILLERY SHELLS MISSILES AND BOMBS THAT ARE MORE TRANSPORTABLE AND THUS EVEN LESS SECURE THE US HAS 32000 TONS OF CHEMICAL WEAPONS THERE IS UNDERSTANDABLE URGENCY ABOUT DESTRUCTION BOTH HERE AND IN THE WEST GIVEN RUSSIA'S INSTABILITY NO ONE KNOWS HOW LONG ITS WILLINGNESS TO DESTROY THESE WEAPONS WILL LAST LAST MONTH RUSSIA THE US AND MORE THAN 100 OTHER NATIONS SIGNED A CHEMICAL WEAPONS CONVENTION THAT CALLS FOR THEIR TOTAL ELIMINATION BY 2005 THE HOPE IS THAT THIS TREATY AND THE EXAMPLE OF THE SUPERPOWERS DESTROYING CHEMICAL WEAPONS WILL ENCOURAGE THIRD WORLD NATIONS LIKE IRAN AND IRAQ TO FORGO THE POOR MAN'S ATOMIC BOMB THE RUSSIANS HOWEVER SEEM UNLIKELY TO MEET THE TIMETABLE THE US WILL BEGIN DESTRUCTION IN MAY AT JOHNSTON ISLAND NEAR HAWAII IN COMING YEARS DESTRUCTION FACILITIES WILL BE BUILT IN OREGON MARYLAND ALABAMA INDIANA KENTUCKY AND UTAH US CHEMICAL WEAPONS WILL BE BURNED AT TEMPERATURES EXCEEDING 1500 DEGREES SO FAR THERE HAS BEEN LITTLE PUBLIC CONTROVERSY IN THE US BUT IN RUSSIA EVERY ASPECT OF DESTRUCTION FROM HOW TO DO IT TO HOW TO PAY FOR IT FROM WHO SHOULD DO IT TO WHERE IT SHOULD BE DONE IS EMBROILED IN DEBATE VICTOR PETRUNIN A WINNER OF THE LENIN MEDAL FOR HIS WORK ON CHEMICAL WEAPONS SAYS HE HAS HEARD IDEAS RANGING FROM LOADING THE ARMS ON A ROCKET AND SHOOTING THEM INTO THE SUN TO DUMPING THEM IN AN ACTIVE VOLCANO OTHER TOPICS OF DISCUSSION BETWEEN GOVERNMENT OFFICIALS AND LOCAL CITIZENS INCLUDE THE RISK OF ACCIDENT THEFT OR TERRORISM SOME RUSSIAN SCIENTISTS BELIEVE RUSSIA ACTUALLY COULD GET RICH WHILE DESTROYING ITS CHEMICAL WEAPONS THE LEWISITE HERE FOR INSTANCE CONTAINS SOME 2000 TONS OF ARSENIC A COMPONENT IN GALLIUM ARSENIDE USED IN MICROCHIPS AND SEMICONDUCTORS AT 1000 A POUND THE ARSENIC WOULD HAVE A MARKET VALUE OF 4 BILLION SKEPTICAL WESTERN ANALYSTS HOWEVER VIEW THIS AS A PIPE DREAM THE EXTRACTION PROCESS THEY SAY IS DIFFICULT DANGEROUS AND EVEN IF POSSIBLE IMPRACTICAL MONEY THOUGH IS NEEDED A RUSSIAN GOVERNMENT FACING HYPERINFLATION AND ON THE BRINK OF BANKRUPTCY LACKS THE FUNDS TO MAKE A SERIOUS START ON A DESTRUCTION PROGRAM THAT A MORE EFFICIENT US GOVERNMENT ESTIMATES WILL COST 8 BILLION IN AMERICA IF THE JOB IS TO BE DONE THE BURDEN ALMOST SURELY WILL FALL ON TAXPAYERS IN EUROPE JAPAN AND THE US WHERE CONGRESS ALREADY HAS APPROPRIATED 800 MILLION TO HELP RUSSIA DESTROY CHEMICAL AND NUCLEAR WEAPONS RUSSIAN OFFICIALS ACKNOWLEDGE THEY NEED BOTH WESTERN MONEY AND TECHNOLOGY NORMALLY I AM NOT A MAN TO GO AROUND WITH AN OPEN HAND SAYS GEN ANATOLY KOUNTSEVICH FORMER DEPUTY HEAD OF THE RED ARMY'S CHEMICAL TROOPS WHO LEADS A NEW PRESIDENTIAL COMMITTEE CHARGED WITH RESOLVING THE TANGLED DISPUTE OVER CHEMICAL WEAPONS BUT IN THE INTEREST OF GLOBAL STABILITY WE HAVE TO FIND AN IMMEDIATE SOLUTION TO THESE ISSUES ANDREI FEDOROV AN ADVISER TO RUSSIA'S HARDLINE VICE PRESIDENT IS MORE BLUNT THE UNITED STATES SHOULD PAY WHOEVER PAYS THE DESTRUCTION IS LIKELY TO INVOLVE BIG CONSTRUCTION CONTRACTS ALREADY THE GERMAN COMPANY METALLGESELLSCHAFT AG IS ANGLING TO DESTROY THE CHEMICALS HERE IN KAMBARKA IF THE GERMAN GOVERNMENT HELPS PAY THE BILL ESTIMATED BY THE METALS AND ENVIRONMENTAL COMPANY AT 300 MILLION MARKS 185 MILLION SO FIERCE IS COMPETITION AMONG US ENGINEERING FIRMS EAGER TO HELP THE RUSSIANS WITH US TAX DOLLARS THAT THE PENTAGON STILL HASN'T CHOSEN FROM AMONG THE 32 CONCERNS THAT EXPRESSED INTEREST LAST YEAR A FRUSTRATED GEN KOUNTSEVICH RIFFLES THROUGH TWO RECENT ISSUES OF ENGINEERING NEWS RECORD A US PUBLICATION LISTING THE LARGEST US DESIGN AND CONSTRUCTION CONCERNS AND SUGGESTS THAT THE PENTAGON SIMPLY SELECT THE TOP OF THE LIST AND GET STARTED EVEN IF WESTERN TECHNOLOGY AND MONEY MATERIALIZE RUSSIAN AUTHORITIES STILL MUST GET PUBLIC SUPPORT IN PLACES LIKE KAMBARKA IN THE HEART OF RUSSIA'S DEFENSE INDUSTRY GEN BELOUSSOV IS HOST TO THE FIRST VISIT TO THIS OFFLIMITS AREA BY AMERICAN JOURNALISTS WITH THE DEATH OF COMMUNISM AND THE BREAKUP OF THE SOVIET UNION GEN BELOUSSOV HAS BECOME PRESIDENT BELOUSSOV TRANSFORMING MUCH OF HIS DEFENSE BUREAUCRACY INTO A GOVERNMENTOWNED COMPANY CALLED METALKHIM THE COMPANY NOW SEEKS TO HELP DESTROY CHEMICAL WEAPONS FOR PROFIT IN PARTNERSHIP WITH METALLGESELLSCHAFT THE GENERAL HASN'T HAD TO MOVE HE OCCUPIES THE SAME SPACIOUS MAPLEPANELED OFFICE NEAR THE KREMLIN IN MOSCOW WHERE A PORTRAIT OF LENIN CONTINUES TO SMILE DOWN ON HIM IN KAMBARKA THE STORAGE FACILITY REMAINS LARGELY UNCHANGED FROM ITS CONSTRUCTION IN THE EARLY 1950S FIVE IDENTICAL WHITE BARRACKS SIT HIDDEN AMONG SNOWCOVERED BIRCHES THE FENCED AND LIGHTLY GUARDED COMPOUND IS PRESIDED OVER BY TWO TALL LOOKOUT TOWERS MANNED BY SOLITARY GUARDS STANDING ONEHOUR WATCHES IN THE SUBZERO WEATHER THERE IS LESS VISIBLE SECURITY THAN AT AN AMERICAN NATIONAL GUARD ARMORY INSIDE EACH OF THE BUILDINGS SIT 16 LARGE SILVERPAINTED TANKS LABELED LEWISITE 6161 BENEATH EACH TANK RAISED FROM THE FLOOR BY CONCRETE CRADLES IS A DRAINAGE TROUGH TO CARRY LEAKAGE TO UNDERGROUND STORAGE COL MIKHAIL VASTLJEVICH MIHAILOV A STOCKY COMMANDING OFFICER BUNDLED IN A GREEN WINTER UNIFORM AND A BLUE FUR HAT INSISTS NO LEAKS HAVE OCCURRED REGARDLESS VISITORS ARE ISSUED GAS MASKS BEFORE ENTERING EACH TANK IS NEARLY FIVE INCHES THICK AND HAS ERODED ONLY ABOUT ONE MILLIMETER IN 40 YEARS SAYS COL MIHAILOV US INSPECTORS ALLOWED A SINGLE CURSORY VISIT HERE PRIVATELY EXPRESS DOUBTS ABOUT THE ADEQUACY OF RUSSIAN STORAGE AND SECURITY PROCEDURES THEY SAY THE RUSSIANS ALWAYS CHECK THE SAME SPOTS ON THE TANKS FOR CORROSION AND THUS MAY MISS WEAKER AREAS LOCAL CITIZENS ARE SIMILARLY SKEPTICAL ABOUT CURRENT SAFETY AND EVEN MORE FEARFUL OF THE RISKS ENTAILED IN DESTRUCTION SMALL WONDER THE LEWISITE WAS FIRST STORED HERE IN THE EARLY 1950S BUT PEOPLE LEARNED ABOUT IT OFFICIALLY IN 1989 WHEN THENFOREIGN MINISTER EDUARD SHEVARDNADZE DISCLOSED THE EXTENT OF SOVIET CHEMICALWEAPONS PRODUCTION EVER SINCE THE TENSION AMONG THE PEOPLE HAS BEEN RISING STEADILY SAYS KAMBARKA'S DEPUTY MAYOR ALEXANDER ALEKSEEVICH ROMANOV WHO NOW FEELS BOLD ENOUGH TO SAY THAT WHILE SEATED BETWEEN GEN BELOUSSOV AND COL MIHAILOV OVER LUNCH EMBOLDENED TOO IS VG SOLOTARJOV EDITOR OF THE LOCAL NEWSPAPER WHO IN HIS OFFICE ON KARL MARX STREET TELLS GEN BELOUSSOV THAT PEOPLE HERE ARE AFRAID AND SIMPLY WANT THE CHEMICALS TRANSPORTED OUT OF TOWN AS FAST AS POSSIBLE OUTSIDE THE LOCAL CAFETERIA NINA PETROVINA TELLS VISITORS SHE HAS LIVED WITH HER HUSBAND A MILITARY MAN AT THE LEWISITE STORAGE FACILITY FOR THE PAST 27 YEARS WITHOUT ANY ILL HEALTH EFFECTS BUT LIKE OTHERS SHE SAYS SEND IT AWAY FROM HERE NOW BURNING IT UP WOULD JUST CREATE MORE PROBLEMS NEVER MIND THAT NEIGHBORING REGIONS DON'T WANT THE STUFF TRANSPORTED ACROSS THEIR LAND OFFICIALS MUST FIND SOME COMMON GROUND WITH THEIR PEOPLE TO AVOID A REPEAT OF THE CHAPAEVSK FIASCO THE HULKING GRAY PLANT THAT RISES FROM THE FLAT LANDSCAPE OF CHAPAEVSK STANDS EMPTY BUT FOR THE STORAGE OF HUNDREDS OF CRATES OF GAS MASKS MOSCOW BEGAN BUILDING THE PLANT IN 1987 BUT THE 86000 RESIDENTS WEREN'T TOLD UNTIL IT WAS NEARLY COMPLETED A YEAR LATER A FIRESTORM OF PROTEST BROKE AS CITIZENS CALLED ON MOSCOW TO ABANDON THE PLANT THE GOVERNMENT HELD HEARINGS AND ORGANIZED COMMISSIONS TO VOUCH FOR THE PLANT'S SAFETY STILL THE PUBLIC REFUSED TO BELIEVE AND MOSCOW GAVE UP ON THE PLANT IN 1989 TODAY ITS COMMANDER ANATOLI IVANOVICH GARKAVENKO LEADS A VISITOR THROUGH ITS VAST FRIGID CHAMBERS EXPLAINING HOW CHEMICAL WEAPONS ARTILLERY SHELLS BOMBS MISSILES WOULD HAVE BEEN BROUGHT HERE CUT OPEN AND THE LIQUID TOXINS DRAINED INTO VATS NEUTRALIZING CHEMICALS WOULD HAVE BEEN ADDED GREATLY SWELLING THE VOLUME OF THE LETHAL LIQUID BUT REDUCING ITS TOXICITY THEN THE RESULTING LIQUID WOULD BE BURNED AT HIGH TEMPERATURES UNTIL IT WAS RENDERED NO MORE TOXIC THAN CERTAIN PESTICIDES THE LATEST GOVERNMENT PLAN IS RUNNING INTO A SIMILAR MINEFIELD OF OPPOSITION IT CALLS FOR CONSTRUCTION BY 1997 OF TWO DESTRUCTION FACILITIES ONE IN KAMBARKA AND THE OTHER AT NOVOCHEBOKSARSK A CHEMICALWEAPONS PRODUCTION SITE IN CHUVASH A REPUBLIC WITHIN THE RUSSIAN FEDERATION EVEN BEFORE THE RUSSIAN PARLIAMENT BEGAN DEBATING THE PLAN LAST MONTH THE LEGISLATURE IN CHUVASH REJECTED A DESTRUCTION FACILITY ON ITS TERRITORY WE CAN'T MAKE ANY DECISION NOW WITHOUT THE CONSENT OF THE LOCALS SAYS VITALI VITEBSKII A MEMBER OF THE RUSSIAN PARLIAMENT'S COMMITTEE HANDLING DESTRUCTION ISSUES WE UNDERESTIMATED THE CHANGES IN SOCIETY AND THE ROLE OF MASS MEDIA SO WE DIDN'T PAY ENOUGH ATTENTION TO THE PEOPLE NOW TRAPPED BETWEEN MOUNTING PUBLIC OPPOSITION AND AN INTERNATIONAL DEADLINE FOR DESTRUCTION RUSSIAN OFFICIALS ARE TRYING TO BUY PUBLIC SUPPORT GEN KOUNTSEVICH SAYS THE GOVERNMENT ESTIMATES THAT SOCIAL COSTS HEALTH GUARANTEES NEW HOSPITALS AND SCHOOLS AND OTHER ENTICEMENTS WILL ADD 20 TO THE TOTAL BILL FOR DESTROYING CHEMICAL WEAPONS THAT IS IF THE MONEY CAN BE FOUND THE ECONOMY OF THIS COUNTRY IS IN SUCH A DISASTROUS SHAPE THAT EVEN THE FOUR BILLION RUBLES 8 MILLION WE NOW HAVE FOR THIS IS A PROBLEM SAYS GEN KOUNTSEVICH 9302250021 930225 CORPORATE FOCUS AFTER YEARS OF R&D PITNEY BOWES NOW SEEKS THE SALE CHALLENGE IS TO PERSUADE BUSINESSES TO INVEST IN MAIL ROOM AUTOMATION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN IF THE CHECK IS IN THE MAIL PITNEY BOWES INC WANTS TO PUT IT THERE HAVING INVESTED ABOUT HALF A BILLION DOLLARS IN THE PAST SIX YEARS TO AUTOMATE THE DRUDGERY OF THE CORPORATE MAIL ROOM THE BIG OFFICEEQUIPMENT COMPANY NOW PREPARES TO CONVINCE BUSINESSES THAT INVESTING IN NEW HIGHTECH GADGETS WILL PAY OFF SIGNIFICANTLY AND PROMPTLY LAST YEAR PITNEY BOWES INTRODUCED COMPUTERIZED SYSTEMS AIMED AT COMPANIES THAT GENERATE LARGE VOLUMES OF MAIL AND YESTERDAY EXPANDED ITS PUSH TO SMALL BUSINESSES UNVEILING SYSTEMS IT SAYS CAN SAVE MAIL COSTS FOR FIRMS THAT HANDLE AS FEW AS 50 LETTERS A DAY AT THIS POINT MARKETING IS OUR CHALLENGE DECLARES PITNEY CHAIRMAN GEORGE HARVEY WHO PRESIDED OVER THE BIGGEST R&D PUSH IN THE COMPANY'S HISTORY WE KEEP BRINGING OUT NEW PRODUCTS BUT WE NEED TO EDUCATE CUSTOMERS THAT OUR TECHNOLOGY CAN HELP THEM HE SAYS THE 72YEAROLD COMPANY IS GAMBLING THAT BUSINESSES WILL BE WILLING TO INVEST IN NEW GADGETRY TO TAKE ADVANTAGE OF POSTAGE DISCOUNTS AVAILABLE TO MAILERS WHO MAKE IT EASIER FOR THE POSTAL SERVICE TO SORT AND DELIVER MAIL PITNEY'S PRODUCTS PRINT BARCODES AND METERED POSTAGE THAT ENABLE THE POST OFFICE TO SPEED ITS PROCESSING BUT SELLING A BETTER MOUSETRAP ISN'T ALWAYS EASY WITH FOLKS WHO BELIEVE THE OLD ONE ALREADY CATCHES ENOUGH MICE MANY COMPANIES DON'T NECESSARILY VIEW THE MAIL ROOM AS AN OBVIOUS PLACE TO CUT EXPENSES BY INTRODUCING STATEOFTHEART ELECTRONICS PEOPLE DON'T JUST RUN OUT AND BUY THE BEST MAILING MACHINES SAYS EUGENE GLAZER ANALYST AT DEAN WITTER YOU'VE GOT TO CONVINCE THE CUSTOMER THAT THE OLD MACHINE HAS TO BE SCRAPPED AND TO MAKE A NEW INVESTMENT THAT'S NOT EASY THE HIGHTECH PUSH BECAME A NECESSITY SIX YEARS AGO WHEN PITNEY BEGAN TO FEEL THE BITE OF A TRIO OF FOREIGN COMPETITORS NIBBLING AWAY AT ITS 88 MARKET SHARE OF THE US POSTAGE METER MARKET IN RESPONSE MR HARVEY CALLED FOR SOFTWAREDRIVEN MACHINES THAT NO COMPETITOR COULD MATCH IN ITS MARKETING THE COMPANY QUIZZED 4000 CUSTOMERS ABOUT FEATURES THEY WANTED IN AN IDEAL MAILING SYSTEM LARGE VOLUME MAILERS COMPLAINED THAT THEY WERE CONTINUALLY FRUSTRATED AT HAVING TO FOLLOW A LENGTHY SERIES OF STEPS TO COMPLETE A MAJOR MAILING FROM FOLDING MATERIAL TO STUFFING ENVELOPES TO WEIGHING THE MATERIAL TO ADDING POSTAGE THEY WANTED A SELFCONTAINED MACHINE TO HANDLE THOSE TASKS WITH MINIMAL OPERATOR EFFORT THEN PITNEY SET ABOUT BUILDING A BASIC TECHNOLOGY PLATFORM BASED ON THOSE REQUIREMENTS THE BREAKTHROUGH WAS THE PARAGON MAIL PROCESSOR SYSTEM AIMED AT LARGE MAILERS UNLIKE OTHER MACHINES PARAGON USES A PATENTED WEIGHONTHEWAY TECHNOLOGY TO WEIGH AND METER 90 ITEMS OF ASSORTED SIZES AND WEIGHTS AT ASTONISHING SPEED ALTERNATIVELY THE MACHINE CAN PROCESS UP TO 240 PIECES OF UNIFORM MAIL PER MINUTE THAT'S LIKE RUNNING 240 FAT GUYS ON A BATHROOM SCALE IN A MINUTE AND WEIGHING THEM NOTES ANALYST B ALEX HENDERSON OF PRUDENTIAL SECURITIES INC WHO DESCRIBES PITNEY AS HIS BEST KEPT INVESTMENT SECRET THE IDEA TO BUILD SUCH A MACHINE WAS AMBITIOUS SAYS PAUL REECE VICE PRESIDENT OF OPERATIONS AND TECHNOLOGY YOU COULD SAY WE WERE HEROES OR FOOLS AT THE DESIGN STAGE HE NOTES UTOPIAN SOLUTIONS DEMANDED BY PITNEY'S MARKETING DEPARTMENT WOULD SOMETIMES STYMIE THE COMPANY'S ENGINEERS EVEN TO THE POINT WHEN THE ENTIRE PROJECT WAS JEOPARDIZED BUT A STEADY STREAM OF INVENTIONS ALONG WITH SOME PRESSURE FROM COMPETITORS WHO WERE EXPERIMENTING WITH THEIR OWN ELECTRONIC MAILING MACHINES PUSHED THE RESEARCH FORWARD PITNEY BELIEVES PARAGON WHICH COSTS ABOUT 20000 OR CAN BE LEASED FOR 560 A MONTH OVER 48 MONTHS CAN SAVE A USER 25 HOURS EACH DAY IN MAILING TIME A TYPICAL CUSTOMER PROCESSES 1500 PIECES OF MAIL DAILY ALTHOUGH THE MACHINE IS PROBABLY UNECONOMICAL FOR FIRMS GENERATING FEWER THAN 250 LETTERS A DAY FOR SMALLER FIRMS PITNEY UNVEILED A SEPARATE BUSINESS BASICS LINE IT FIGURES CAN SAVE FIRMS UP TO 20 IN POSTAGE COSTS THE PRODUCTS AUTOMATE VARIOUS ASPECTS OF MAIL PROCESSING INCLUDING MAILING LIST MANAGEMENT ADDRESSING PAPER HANDLING WEIGHING AND MAILING STEPS THAT ARE USUALLY DONE MANUALLY IN SMALL OFFICES A BASIC CONFIGURATION OF FOUR COMPONENTS FROM THE NEW LINE PITNEY BOWES SAID COULD COST ABOUT 3000 OR BETWEEN 35 AND 120 A MONTH TO LEASE THE COMPANY SAID THE SYSTEM WOULD ALLOW A CUSTOMER TO BREAK EVEN IF AT LEAST 50 LETTERS A DAY WERE BEING PROCESSED THE SMALL BUSINESS MARKET IS IMPORTANT TO PITNEY MAKING UP MORE THAN 80 OF PITNEY'S CUSTOMER BASE AND GENERATING ABOUT HALF OF ITS ANNUAL REVENUE EARLY INDICATIONS SUGGEST THAT THE BIG PARAGON SYSTEM IS A HIT THE COMPANY IS ON TRACK TO GENERATE OVER 100 MILLION IN REVENUE IN THE FIRST YEAR SINCE LAST JULY'S INTRODUCTION SAYS KATHLEEN SYNOTT A MARKETING VICE PRESIDENT PITNEY'S OTHER RECENT PRODUCT SPECTRUM INSERTING SYSTEM ALSO PRICED AT ABOUT 20000 OR MORE DEPENDING ON THE CONFIGURATION FOLDS AND INSERTS SHEETS INTO ENVELOPES AND SEALS THE FLAPS AT A RATE OF AS MANY AS 4000 ENVELOPES AN HOUR IN LAUNCHING ITS DESKTOP MAILING SYSTEM YESTERDAY PITNEY IS TARGETING ABOUT HALF A MILLION CUSTOMERS WHO ALREADY OWN A BASIC MAILING BASE AND POSTAGE METER BUT MIGHT BE PERSUADED TO BUY A MORE MODERN MACHINE MAILING SYSTEMS GENERATE ABOUT 53 OF THE COMPANY'S 343 BILLION IN ANNUAL REVENUE ITS OTHER MAIN BUSINESSES ARE FINANCING OF EQUIPMENT LEASES AND BUSINESS SUPPLIES AND SERVICES SOME ANALYSTS DON'T SEEM TO HAVE DOUBTS MR HENDERSON OF PRUDENTIAL SECURITIES SAYS PITNEY CAN WALK INTO A 300 MILLION COMPANY AND CUT TWOTOTHREE PEOPLE OUT OF THE MAIL ROOM FOR 15000 BY INSTALLING THE APPROPRIATE MACHINE COMPARE THAT TO THE 30000 SALARY YOU'RE PAYING EACH AND THAT BECOMES A VERY COMPELLING ARGUMENT HE SAYS MAILING SYSTEMS LEASING SERVICES COPIERS FACSIMILES DICTAPHONES SHIPPING AND WEIGHING SYSTEMS FACILITIES MANAGEMENT SERVICES ITEM IDENTIFICATION AND TRACKING SYSTEMS FRIDEN NEOPOST ASCOM HASLER MAILING SYSTEMS INC A UNIT OF SWISS CONCERN ASCOM HOLDINGS CO AND POSTALIA INC THE US UNIT OF FRANCOTYPPOSTALIA GMBH OF GERMANY ITSELF A UNIT OF SIEMENS AG 9302250020 930225 CREDIT RATINGS ROHR INC CHULA VISTA CALIF STANDARD & POOR'S INC PLACED THIS AIRCRAFT PARTS MAKER'S DOUBLEBMINUS SUBORDINATED DEBT RATING ON CREDITWATCH WITH NEGATIVE IMPLICATIONS S&P SAID ITS MOVE REFLECTED A DETERIORATING FINANCIAL PROFILE FROM ALREADY SUBPAR LEVELS THE IMPLIED SENIOR RATING IS DOUBLEBPLUS ABOUT 265 MILLION OF RATED DEBT IS OUTSTANDING S&P SAID 9302250019 930225 NOT ONLY MUST DOG EAT DOG IT MUST DO SO WITH STYLE AND GRACE BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S FOOD FOR THOUGHT THE NEXT TIME YOU HAVE A JOB INTERVIEW OVER A MEAL AND GET TURNED DOWN IT MAY HAVE HAD TO DO WITH THE WAY YOU HELD YOUR FORK OR POSSIBLY YOU TALKED WITH YOUR MOUTH FULL OR USED YOUR NAPKIN AS A FLAG OR DIDN'T BREAK BREAD THOSE ARE AMONG THE EIGHT BIGGEST DINING MISTAKES ACCORDING TO MARY MONICA MITCHELL WHO WRITES AN ETIQUETTE COLUMN FOR THE PHILADELPHIA INQUIRER AND GIVES WORKSHOPS ON FINE DINING FOR 250 A SEVENCOURSE MEAL SHIRLEY WILLEY WHO TOMORROW WILL TEACH A DINING ETIQUETTE COURSE TO 65 STUDENTS AND FACULTY MEMBERS AT THE BUSINESS SCHOOL OF THE UNIVERSITY OF CALIFORNIA AT DAVIS ESTIMATES THAT 30 OF ALL JOBINTERVIEW FAILURES STEM FROM POOR MANNERS SHE TELLS OF AN IMPECCABLY DRESSED GRADUATE STUDENT WITH A 38 GRADEPOINT AVERAGE WHO LOST OUT ON A JOB AFTER HE TOOK HIS THUMB AND PUSHED THE RICE ONTO HIS FORK MS WILLEY WHO IS CHARGING A GRADSTUDENT PRICE OF 15 A HEAD FOR TOMORROW'S FOURCOURSE LESSON POSES PROBLEMS FOR THE STUDENTS TO SOLVE LIKE WHAT TO DO IF THERE'S A BUG IN YOUR COBB SALAD SHE RECOMMENDS IGNORING IT TELLING THE SERVER YOU NEED A NEW SALAD OR TAKING THE BUG OUT WITH YOUR NAPKIN AND DISPATCHING IT UNDER THE TABLE MARILYN MOATS KENNEDY PUBLISHER OF THE NEWSLETTER KENNEDY'S CAREER STRATEGIST SAYS THINGS HAVE GOTTEN SO BAD REFERENCES ARE OFTEN ASKED WHETHER A CANDIDATE WOULD BE ACCEPTABLE TO MISS MANNERS MS KENNEDY TELLS OF ONE MAN UP FOR A 75000AYEAR JOB WHO NEVER PUT HIS NAPKIN IN HIS LAP THE RECRUITER COULDN'T REMEMBER ANYTHING ELSE ABOUT THE MEAL BUT THE WHITE NAPKIN THAT NEVER MOVED THE APPLICANT DIDN'T GET THE JOB JANE DALTON A PARTNER IN THE PHILADELPHIA LAW FIRM OF DUANE MORRIS & HECKSCHER SAYS MS MITCHELL'S COURSE HELPED PUT HER AT EASE SO SHE CAN CONCENTRATE MORE ON HER CLIENTS THOUGH SHE HASN'T OVERCOME A TENDENCY FOR FOOD TO GO LEAPING OFF HER PLATE WHEN SHE'S CUTTING SOMETHING THE COURSE GAVE HER CLUES ON DEALING WITH IT A SMALL PIECE OF FOOD FOR INSTANCE MAY BE COVERED BY A BUTTER PLATE MS MITCHELL ARGUES THAT STANDARDS HAVE SLIPPED BECAUSE DOMINATING THE WORKPLACE TODAY ARE PEOPLE WHO WERE PRODUCTS OF THE '60S WHEN IT WAS COOL TO BE A SLOB WHAT DO THEY KNOW ABOUT A FISH FORK SHE ADDS THAT SHE COMPILED HER LIST OF TABLE SINS THROUGH A LOT OF OBSERVATION BUT HASN'T LOST ANY FRIENDS OVER HER WORK I NEVER CRITICIZE UNLESS I'M PAID TO 9302250018 930225 BUSINESS BRIEF USX EXPECTED TO LEAD ROUND OF TALKS SET UP MODEL WITH UNITED STEELWORKERS PITTSBURGH USX CORP IS EXPECTED TO LEAD THE COMING ROUND OF CONTRACT TALKS WITH THE UNITED STEELWORKERS OF AMERICA IN AN EFFORT TO PRODUCE A NEW MODEL FOR COLLECTIVE BARGAINING FOUR COMPANIES USX'S US STEEL BETHLEHEM STEEL CORP NATIONAL STEEL CORP A UNIT OF TOKYO'S NKK USA CORP AND INLAND STEEL INDUSTRIES INC ACCEPTED THE UNION'S OFFER TO BEGIN EARLY NEGOTIATIONS TO FORM A LONGERTERM MORE FLEXIBLE ACCORD SEPARATE TALKS WILL BEGIN NEXT WEEK THOSE FAMILIAR WITH THE SITUATION SAID US STEEL WILL LEAD THE NEGOTIATIONS DETERMINING A PATTERN THAT THE OTHER PRODUCERS WILL LIKELY FOLLOW THE COMPANY HAS ALREADY HELD HALF A DOZEN JOINT PROBLEMSOLVING MEETINGS WITH THE UNION IN RECENT MONTHS A US STEEL SPOKESMAN SAID THE COMPANY IS PLEASED TO HAVE EARLY NEGOTIATIONS BUT BOTH UNION AND COMPANY DECLINED TO CONFIRM WHETHER THE COMPANY WOULD LEAD THE BARGAINING WHICH COVERS 44000 WORKERS AT THE FOUR COMPANIES A UNION SPOKESMAN SAID LOGIC DICTATES THAT IT WILL CONCENTRATE ON ONE COMPANY IN JANUARY THE UNION TOLD STEELMAKERS IT WAS WILLING TO REACH LONGTERM AGREEMENTS THAT PROVIDED WAYS TO REDUCE WORK FORCES AND TO RELAX STRINGENT WORK RULES IN EXCHANGE THE UNION SOUGHT JOB SECURITY PROVISIONS AND OTHER GUARANTEES OBSERVERS BELIEVE THE UNION'S INITIATIVE WHICH HAS BEEN BACKED BY THE STEELMAKERS SO FAR COULD SET A NEW TONE IN LABORMANAGEMENT RELATIONS THE CONTRACTS WITH INLAND BETHLEHEM AND NATIONAL EXPIRE ON JULY 31 THE CONTRACT WITH US STEEL EXPIRES ON JAN 31 1994 THE UNION SAID IT WILL HAVE FURTHER DISCUSSIONS WITH ARMCO INC BEFORE BEGINNING EARLIER NEGOTIATIONS FOR A NEW CONTRACT FOR 4000 WORKERS AT THAT COMPANY FOR THE UNION CONCENTRATING ON US STEEL COULD PROVE MORE LUCRATIVE THAN DEALING WITH BETHLEHEM WHICH LED TALKS FOR THE LAST TWO ACCORDS OR INLAND BECAUSE BOTH ARE FINANCIALLY WEAKER THAN US STEEL THE UNION MAY ALSO HAVE MORE LUCK SPREADING ITS SOCALLED NEW DIRECTIONS AGENDA BY GOING TO US STEEL THE INDUSTRY LEADER THAN BY TURNING TO NATIONAL STEEL WHICH HAS ALREADY ADOPTED MANY OF THE PROVISIONS THE UNION SEEKS BETHLEHEM SAID IN A JOINT STATEMENT WITH THE UNION THAT IT EXPECTS A SETTLEMENT BY MAY 1 9302250017 930225 JAPANESE BROKERAGE FIRMS TO SETTLE SEC CHARGES BY MICHAEL R SESIT AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN AN UNUSUAL CRACKDOWN BY THE SECURITIES AND EXCHANGE COMMISSION ON JAPANESE SECURITIES FIRMS THREE OF JAPAN'S LARGEST BROKERAGE HOUSES HAVE AGREED TO SETTLE CIVIL CHARGES THAT THEIR US UNITS COMMITTED A VARIETY OF SECURITIESLAW VIOLATIONS THE SETTLEMENT WITH THE SEC CALLS FOR FINES FOR THE FIRMS AND THE SUSPENSIONS OF AT LEAST THREE SENIOR EXECUTIVES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE ALLEGED VIOLATIONS FOUND BY THE SEC INCLUDE THE SUBMISSION OF A FALSE 3 BILLION BID AT A US TREASURY AUCTION AND BUYING SECURITIES AT ABOVEMARKET PRICES FROM KEY CLIENTS THE SEC ALSO IS EXPECTED TO BRING CIVIL CHARGES AGAINST A FOURTH JAPANESE FIRM NIKKO SECURITIES CO INTERNATIONAL INC THE US SUBSIDIARY OF NIKKO SECURITIES CO IS FIGHTING AN SEC ATTEMPT TO IMPOSE A FINE OF AS MUCH AS 1 MILLION FOR ALLEGED SECURITIESLAW VIOLATIONS THE INDIVIDUALS SAID PEOPLE FAMILIAR WITH THE SEC'S PENDING ACTION WHICH COULD BE ANNOUNCED AS EARLY AS TODAY SAID THAT DAIWA SECURITIES AMERICA INC AND YAMAICHI INTERNATIONAL AMERICA INC RESPECTIVELY THE US SUBSIDIARIES OF DAIWA SECURITIES CO AND YAMAICHI SECURITIES CO HAVE AGREED TO PAY FINES OF 200000 EACH A 50000 FINE WILL BE LEVIED AGAINST NOMURA SECURITIES INTERNATIONAL INC THE US UNIT OF NOMURA SECURITIES CO THESE PEOPLE SAID THE FIRMS ARE EXPECTED TO SETTLE WITHOUT ADMITTING OR DENYING WRONGDOING THE SEC BEGAN ITS INVESTIGATION IN AUGUST 1991 AFTER THE FOUR JAPANESE FIRMS ADMITTED TO REIMBURSING BIG CLIENTS IN JAPAN FOR LOSSES AND TWO OF THEM ADMITTED TO DOING BUSINESS WITH MEMBERS OF THE JAPANESE UNDERWORLD WHILE THE COMMISSION DIDN'T FIND THE SAME MASSIVE REIMBURSEMENTS WERE CARRIED OUT IN THE US IT DID FIND A HOST OF OTHER ALLEGED VIOLATIONS HOWEVER THE VIOLATION THAT APPEARS TO BE MOST SEVERE INVOLVING DAIWA'S US UNIT STEMMED FROM THE SEC'S INVESTIGATION OF SALOMON BROTHERS INC AND THE FIRM'S TREASURYAUCTION SCANDAL ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE SEC BELIEVES THAT AT THE REQUEST OF PAUL MOZER THE FORMER SALOMON GOVERNMENT SECURITIES TRADING CHIEF DAIWA SUBMITTED A FALSE 3 BILLION BID AT AN AUGUST 1989 TREASURY BILL AUCTION THE BID WAS SUBMITTED ON BEHALF OF THE SALOMON INC UNIT AND DAIWA QUICKLY SOLD THE 3 BILLION OF TREASURY SECURITIES TO SALOMON AT A 001 PERCENTAGE POINT PROFIT DAIWA IS EXPECTED TO SETTLE CHARGES OF MAKING THE FALSE BID AND OF BOOKANDRECORDKEEPING VIOLATIONS AS PART OF ITS SETTLEMENT WITH THE SEC DAIWA HAS AGREED TO DISGORGE THE PROFIT FROM THE 1989 TRADE PEOPLE FAMILIAR WITH THE MATTER SAID AND IN AN UNUSUAL MOVE WILLIAM BRACHFELD A SENIOR EXECUTIVE VICE PRESIDENT IN CHARGE OF DAIWA'S US GOVERNMENT SECURITIES OPERATION HAS AGREED WITHOUT ADMITTING OR DENYING WRONGDOING TO BE SUSPENDED FOR 90 DAYS FROM THE SECURITIES BUSINESS WHILE EXECUTIVES AT THE JAPANESE FIRMS AND THEIR LAWYERS REFUSED TO COMMENT PUBLICLY SOME YESTERDAY PRIVATELY ACCUSED THE SEC OF JAPANBASHING THE LAWYER FOR ONE OF THE JAPANESE FIRMS ARGUED THAT THE FINES IMPOSED ARE GREATER THAN THOSE WHICH WOULD BE APPLIED TO A US COMPANY ANOTHER SAID THERE IS A QUESTION OF WHETHER IF AN AMERICAN FIRM HAD ENGAGED IN THESE RECORDKEEPING VIOLATIONS THERE WOULD BE A PROCEEDING BUT OTHERS FAMILIAR WITH THE MATTER DEFENDED THE SEC ACTION AND SAID THE SIMULTANEOUS SETTLEMENT BY THREE OF THE FIRMS WASN'T THE SEC'S IDEA THREE OF THE FOUR JAPANESE FIRMS DECIDED THAT FOR PUBLIC RELATIONS REASONS THEY WANTED TO NEGOTIATE AND SETTLE THE MATTER COLLECTIVELY RATHER THAN INDIVIDUALLY THESE PEOPLE SAID THE SEC DECLINED TO COMMENT YAMAICHI AND NOMURA ARE EXPECTED TO SETTLE CHARGES OF IMPROPER RECORDKEEPING PEOPLE FAMILIAR WITH THE MATTER SAID THEY SAID THE SEC FOUND THAT YAMAICHI IN THE LATE 1980S PURCHASED SOME MUTUAL FUND SHARES FROM A TOP CLIENT AT ABOVEMARKET PRICES AND THEN SPREAD YAMAICHI'S LOSS FROM THE TRADE ON ITS BOOKS OVER A PERIOD OF SEVERAL MONTHS SPOKESMEN FOR BOTH FIRMS DECLINED TO COMMENT IN ADDITION TO YAMAICHI'S FINE THE JAPANESE CHIEF FINANCIAL OFFICER OF YAMAICHI'S US UNIT WILL BE SUSPENDED FOR FOUR MONTHS AND ITS AMERICAN CONTROLLER FOR TWO ACCORDING TO PEOPLE FAMILIAR WITH THE CASE IN THE CASE OF NIKKO THE SEC IS INVESTIGATING THE ALLEGED CONCEALMENT OF FOREIGN EXCHANGE LOSSES BY NIKKO'S US SUBSIDIARY ALLEGED RECORDKEEPING VIOLATIONS AND A 1988 INCIDENT IN WHICH THE US UNIT ALLEGEDLY IMPROPERLY GUARANTEED INVESTMENTS BY A SWISS FINANCIAL INSTITUTION AGAINST LOSS IN THE LATTER INCIDENT THE FIRM HAS MAINTAINED THAT IT WAS HOODWINKED BY AN EMPLOYEE PEOPLE FAMILIAR WITH THE NIKKO MATTER SAID THE FIRM IS RESISTING THE SEC'S SETTLEMENT TERMS AND SEC STAFFERS HAVE BEEN ANGERED BY THE JAPANESE FIRM'S RECALCITRANCE A NIKKO SPOKESWOMAN SAID THAT ANY MATTER PERTAINING TO THE SEC AND NIKKO IS PRIVATE SOME OF THE ALLEGED RECORDKEEPING VIOLATIONS AT NOMURA AND YAMAICHI INVOLVE THE LOSS OF INTERNAL MEMOS REMINDING JAPANESE EXECUTIVES TO OBTAIN PROPER REGISTRATIONS AS SECURITIES BROKERS AND SUPERVISORS IN THE US WHILE LAWYERS FOR SOME JAPANESE FIRMS SAY THE SEC INSISTS THAT ALL BROKERAGE RECORDS SHOULD BE KEPT THEY QUESTION WHETHER SUCH GUIDELINES SHOULD APPLY TO SIMPLE REMINDER MEMORANDUM PEOPLE FAMILIAR WITH THE SITUATION SAID THE SEC ALLEGES THAT ALL FOUR JAPANESE FIRMS EMPLOYED JAPANESE EXECUTIVES WHO FAILED TO PASS REQUIRED REGULATORY EXAMS WHILE EMPLOYMENT OF INDIVIDUALS WHO FAIL SUCH EXAMINATIONS DOESN'T VIOLATE SEC RULES IT DOES VIOLATE REGULATIONS OF THE NEW YORK STOCK EXCHANGE AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS 9302250016 930225 BUSINESS BRIEF AMERICAN RE CORP REINSURANCE COMPANY POSTS SMALL LOSS FOR 4TH QUARTER AMERICAN RE CORP REPORTED A SMALL NET LOSS FOR THE FOURTH QUARTER ITS FIRST OPERATING PERIOD SINCE GOING PUBLIC THE PRINCETON NJ REINSURANCE COMPANY POSTED A LOSS OF 35 MILLION OR 10 CENTS A SHARE BECAUSE OF SOME ACCOUNTING ADJUSTMENTS COMPARISONS WITH THE YEAREARLIER PERIOD WEREN'T AVAILABLE AMERICAN RE MADE AN INITIAL PUBLIC OFFERING JAN 28 RAISING ABOUT 393 MILLION IN NET PROCEEDS SEPARATELY STANDARD & POOR'S CORP RAISED ITS RATING ON AMERICAN RE SUBORDINATED DEBT CITING THE COMPANY'S EFFORTS TO REDUCE DEBT THE RATING WAS LIFTED TO DOUBLEBPLUS FROM SINGLEBPLUS ABOUT 450 MILLION OF DEBT IS AFFECTED S&P ALSO RAISED THE RATING ON CLAIMSPAYING ABILITY OF THE COMPANY'S INSURANCE UNIT TO DOUBLEAMINUS FROM SINGLEA AMERICAN RE CONTRIBUTED 100 MILLION FROM THE PUBLIC OFFERING TO ITS INSURANCE UNIT'S CAPITAL PROCEEDS OF THE OFFERING ALSO WENT TO PAY OFF 200 MILLION IN DEBT 9302250015 930225 INTERNATIONAL GERMAN ASYLUM PLAN ALARMS NEIGHBORS AND IS UNLIKELY TO REDUCE REFUGEES SOON BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE GERMAN GOVERNMENT'S PLANS TO REVISE ASYLUM LAWS WHICH HAVE MADE IT EASY FOR REFUGEES FLEEING UNREST AND POLITICAL PERSECUTION TO SETTLE IN THE COUNTRY AREN'T LIKELY TO SUBSTANTIALLY REDUCE THEIR NUMBERS ANYTIME SOON BUT THE SHIFT IS CERTAIN TO PROVOKE A MAJOR TEST OF GERMANY'S RELATIONS WITH ITS FORMERLY COMMUNIST NEIGHBORS TO THE EAST HAILED BY POLITICIANS AS A VICTORY OF REASON WHEN UNVEILED IN DECEMBER THE PROPOSED AMENDMENT TO THE GERMAN CONSTITUTION AND A PACKAGE OF ACCOMPANYING BILLS WILL BE PUT UP FOR DEBATE IN THE BUNDESTAG NEXT WEEK THE PROPOSED LAWS WOULD ALLOW THE GOVERNMENT TO SKIP FORMAL PROCEEDINGS AND RETURN ASYLUM SEEKERS TO THE COUNTRIES FROM WHICH THEY CROSSED OVER INTO GERMANY IF THOSE COUNTRIES HAVE BEEN CERTIFIED AS SAFE THE MAIN CRITERION BEING OBSERVANCE OF THE GENEVA CONVENTION ON REFUGEES ALL OF GERMANY'S NEIGHBORS WOULD BE CERTIFIED AS SAFE NOT SURPRISINGLY THE GERMAN PLANS HAVE SET OFF ALARMS IN POLAND AND THE CZECH REPUBLIC COUNTRIES THAT WERE THE POINT OF ENTRY FOR MANY OF THE 440000 PEOPLE WHO SOUGHT ASYLUM IN GERMANY LAST YEAR BONN'S PROPOSED POLICY WOULD MAKE POLAND AND THE CZECH REPUBLIC RESPONSIBLE FOR THE REFUGEES PASSING THROUGH THEIR TERRITORY MAKING THEM GERMANY'S BUFFER ZONE ALTHOUGH OFFICIALS IN BOTH COUNTRIES TRY TO STRIKE A SYMPATHETIC TONE WHEN SPEAKING OF GERMANY'S ASYLUM PROBLEMS THEY COMPLAIN BLUNTLY THAT BONN'S SOLUTION SIMPLY DUMPS THE PROBLEMS OF POSTCOLD WAR MASS MIGRATIONS ON THE DOORSTEPS OF THOSE WHO ARE LESS CAPABLE OF HANDLING THEM THE CZECH REPUBLIC IS DETERMINED NOT TO BE AN OFFLOADING DEPOT AND THE ECONOMIC SITUATION IS SUCH THAT IT CAN'T COME TO THAT SAYS A CZECH DIPLOMAT IN BONN INDEED THAT DETERMINATION SEEMS SURE TO SCOTCH GERMAN EFFORTS TO DEPORT MANY OF THE ASYLUM SEEKERS ALREADY WITHIN ITS BORDERS BOTH PRAGUE AND WARSAW HAVE DECLARED THEY WON'T ALLOW REENTRY FOR ANYONE WHO CROSSED INTO GERMANY BEFORE THE NEW AMENDMENT GOES INTO EFFECT IN THE CASE OF POLAND THAT COULD HAVE BEEN 100000 PEOPLE FROM 1992 ALONE EAGER TO SIGN AGREEMENTS WITH PRAGUE AND WARSAW TO REGULATE THE RETURN OF THE UNWANTED IMMIGRANTS AND PROVIDE PROMISED TECHNICAL AND FINANCIAL ASSISTANCE TO DEAL WITH THE RETURNEES BONN APPEARS TO BE SOFTENING ITS STANCE AT A CONFERENCE ON ILLEGAL IMMIGRATION IN BUDAPEST LAST WEEK GERMAN INTERIOR MINISTER RUDOLPH SEITERS SAID THE SOCALLED OLD CASES WOULDN'T BE ALLOWED TO BECOME A STUMBLING BLOCK EVEN SO SECURING THOSE AGREEMENTS WHICH WERE PLEDGED BY CHANCELLOR HELMUT KOHL'S GOVERNMENT WHEN THE CONSTITUTIONAL AMENDMENT WAS HAMMERED OUT WITH THE OPPOSITION SOCIAL DEMOCRATS IS TURNING INTO A TANGLE PRAGUE IS INSISTING ON MULTILATERAL NEGOTIATIONS THAT ALSO INCLUDE ROMANIA BULGARIA AND THE FORMER SOVIET REPUBLICS NOW LINKED IN THE COMMONWEALTH OF INDEPENDENT STATES TO ENSURE THAT ASYLUM SEEKERS DEPORTED TO THE CZECH REPUBLIC WILL BE ACCEPTED BACK BY THEIR COUNTRIES OF ORIGIN SO FAR BONN HASN'T CONVENED SUCH TALKS PERHAPS FEARING THAT THE PARTICIPANTS WILL ASK FOR FUNDS TO RESETTLE ASYLUM SEEKERS ROMANIA ALREADY GETS 19 MILLION A YEAR FROM GERMANY TO HOUSE DEPORTEES AND TRAIN THEM FOR JOBS FAILURE TO MAKE PROGRESS ON THOSE NEGOTIATIONS COULD AFFECT THE FATE OF THE ASYLUM COMPROMISE ITELF SOCIAL DEMOCRATIC LEADERS SAY THEY WON'T VOTE FOR THE AMENDMENT UNTIL FAIR AGREEMENTS WITH PRAGUE AND WARSAW ARE CONCLUDED TALKS ARE UNDER WAY WITH POLAND AND BONN DOESN'T EXPECT TO HAVE THE NEW ASYLUM LAW IN PLACE BEFORE MAY IT HAD ORIGINALLY HOPED FOR LATE MARCH BUT SOCIAL DEMOCRATIC MEMBERS OF THE BUNDESTAG GERMANY'S LOWER HOUSE ARE DEEPLY DIVIDED OVER THE ASYLUM AMENDMENT AND COULD FACE A DIFFICULT CHOICE IF AGREEMENTS AREN'T FORTHCOMING SOON IN THE MEANTIME ASYLUM SEEKERS CONTINUE TO POUR INTO GERMANY 36279 PEOPLE FILED FOR ASYLUM IN JANUARY ABOUT AS MANY AS APPLIED IN AN AVERAGE MONTH LAST YEAR EVEN IF THERE IS NO IMMEDIATE RELIEF FOR A GERMANY AWASH WITH REFUGEES CENTRAL EUROPEAN DIPLOMATS STRESS THAT ITS INTERNATIONAL HANDLING OF THE ISSUE WILL HAVE A LASTING EFFECT ON REGIONAL RELATIONS SOME ADMIT THAT THEIR COUNTRIES HAVE RESPONDED LESS STRIDENTLY THAN THEY MIGHT HAVE BECAUSE THEY BELIEVE GERMAN SUPPORT IS CRUCIAL TO THEM GAINING MEMBERSHIP IN THE EUROPEAN COMMUNITY ACCORDING TO DIETER BINGEN AN ANALYST AT THE FEDERAL INSTITUTE OF EASTERN EUROPEAN AND INTERNATIONAL STUDIES IN COLOGNE GERMANY IT IS LIKELY THAT THE EC HOPEFULS' POLAND HUNGARY AND THE CZECH REPUBLIC WILL FENCE THEMSELVES OFF MAKING THEIR BORDERS INCREAS INGLY IMPERVIOUS TO REFUGEES MAKING THEIR WAY TO GERMANY HIS IS ABOUT FORTRESS EUROPE THEY WANT TO BELONG TO THE FORTRESS THE STABLE EC COUNTRIES JANUSZ REITER POLAND'S AMBASSADOR TO GERMANY PARTIALLY AGREES BUT CAUTIONS THAT THE EC HOPEFULS FOR ECONOMIC AND POLITICAL REASONS CAN'T SIMPLY CLOSE THEM SELVES OFF TO THEIR EASTERN NEIGHBORS IT IS NOT IN THE INTEREST OF THE CENTRAL EUROPEAN STATES TO BE DEGRADED TO A BUFFER ZONE HE SAYS CERTAINLY THIS HAS SOMETHING TO DO WITH THE EC BUT THAT DOESN'T MEAN WE'RE IN JUBILATION OVER MOVING THE IRON CURTAIN FROM THE ODERNEISSE TO THE BUG POLAND'S EASTERN BORDER IT IS TOO EARLY FOR THAT AND IT WOULD BE WRONG 9302250014 930225 YIELDS CONTINUE TO SLIP ON MONEY FUNDS INVESTORS BOOST ASSETS NEW YORK YIELDS ON MONEYMARKET MUTUAL FUNDS CONTINUED TO SLUMP IN THE LATEST WEEK AS INVESTORS ADDED MORE THAN 16 BILLION TO ASSETS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 273 FROM 275 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 567 TAXABLE FUNDS MEANWHILE JUMPED BY 1635 BILLION TO 49411 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 919 BILLION OF THE INCREASE WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID THE INCREASE IS PROBABLY TEMPORARY IN RESPONSE TO LAST WEEK'S DROP IN THE STOCK MARKET IF THE MARKET PICKS UP WE SHOULD SEE MONEY FLOW BACK OUT OF MONEY FUNDS IN TWO WEEKS MONEY FUND YIELDS AREN'T LIKELY TO CHANGE MUCH HE SAID NOTING THAT SHORTTERM INTEREST RATES ARE ESSENTIALLY STABLE AVERAGE MATURITY OF TAXABLE FUNDS' INVESTMENTS MOSTLY COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 61 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT RATES TO RISE ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EASED TO 269 FROM 271 WHILE THE AVERAGE 30DAY SIMPLE YIELD SLID TO 272 FROM 274 THE AVERAGE 30DAY COMPOUND YIELD DECLINED TO 276 FROM 278 THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXFREE MONEY FUNDS SLIPPED TO 190 FROM 194 THE NEWSLETTER REPORTED THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 264 FOR INVESTORS IN THE 28 TAX BRACKET AND TO 275 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 306 TAXEXEMPT FUNDS GREW BY JUST 218 MILLION TO 10254 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY SHORTENED BY TWO DAYS TO 51 DAYS 9302250013 930225 TIME WARNER'S NEW LEADERSHIP TRIMS BUSINESS CONNECTIONS FROM ROSS ERA BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S CHAIRMAN AND CHIEF EXECUTIVE GERALD M LEVIN HAS QUIETLY BEGUN TO DISMANTLE SOME CONTROVERSIAL BUSINESS TIES THAT MARKED THE FREEWHEELING CORPORATE CULTURE OF HIS PREDECESSOR THE LATE STEVEN J ROSS BARELY TWO MONTHS AFTER MR ROSS DIED AFTER COMPLICATIONS FROM PROSTATE CANCER MR LEVIN IS SHARPLY PARING BACK TIME WARNER'S BUSINESS RELATIONSHIP WITH ODED ED ABOODI WHO WAS AMONG THE LATE EXECUTIVE'S MOST TRUSTED ADVISERS AS WELL AS A PERSONAL FRIEND AND MR LEVIN HAS ALSO ENDED THE COMPANY'S FINANCIAL BACKING OF AN INVESTMENT BANKING CONCERN RUN BY TIME WARNER DIRECTOR MERV ADELSON COMPANY INSIDERS SAY THE ACTIONS ARE AN EFFORT TO REMOVE APPARENT CONFLICTS OF INTEREST BUT THEY SAY MR LEVIN IS ALSO ATTEMPTING TO REMOLD THE SPRAWLING ENTERTAINMENT AND MEDIA COMPANY'S CULTURE TO REFLECT HIS OWN MORE DISCIPLINED AND CONVENTIONAL CORPORATE STYLE UNDER MR ROSS THE COMPANY PAID MR ABOODI MILLIONS OF DOLLARS IN FEES AS AN OUTSIDE INVESTMENT BANKER WHILE PAYING HIM AND HIS STAFF SALARIES AND BENEFITS AS TIME WARNER EMPLOYEES MR ABOODI ALSO WAS GIVEN LUCRATIVE STOCK OPTIONS IN HIS UNUSUAL DUAL ROLE MR ABOODI WIELDED BROAD INFLUENCE AT TIME WARNER NEGOTIATING THE FORMER WARNER COMMUNICATIONS INC'S ACQUISITION BY TIME INC AND CRAFTING INCENTIVE PAY PLANS FOR SOME OF THE COMPANY'S TOP EXECUTIVES MR LEVIN PLANS TO TERMINATE MR ABOODI AS AN INSIDE EMPLOYEE THE COMPANY CONFIRMED UNDER THE NEW ARRANGEMENT TIME WARNER WILL RETAIN MR ABOODI AND HIS INVESTMENT BANKING FIRM ALPINE CAPITAL GROUP AS THE COMPANY'S FOREMOST OUTSIDE ADVISER REFLECTING MR LEVIN'S OWN REGARD FOR AND RELIANCE ON THE FINANCIAL STRATEGIST SAY HIGHLEVEL COMPANY INSIDERS AND OTHER OUTSIDE ADVISERS IN MR ADELSON'S CASE MR LEVIN ON DEC 31 ENDED TIME WARNER'S ROLE AS FINANCIAL BACKER IN THE DIRECTOR'S EAST WEST CAPITAL ASSOCIATES INC MR ROSS HAD AGREED TO FINANCE THAT VENTURE WHEN MR ADELSON LEFT HIS EXECUTIVE POST AT THE FORMER WARNER WARNER HAD ACQUIRED MR ADELSON'S COMPANY LORIMARTELEPICTURES INC BEFORE THE 1989 MERGER WITH TIME SINCE THEN TIME WARNER HAS PAID EAST WEST SEVERAL MILLION DOLLARS TO FERRET OUT POTENTIAL ACQUISITIONS THOUGH NONE MATERIALIZED IN THE PAST CRITICS ESPECIALLY SOME SECURITIES ANALYSTS HAVE CITED SUCH ARRANGEMENTS AS EXAMPLES OF THE EXCESS AND WASTE THAT TIME WARNER SHOULD CUT WHILE CONFIRMING THE CHANGES A TIME WARNER SPOKESMAN EMPHASIZED THAT THEY ARE PART OF MR LEVIN'S EFFORTS TO OVERHAUL SOME OF ITS BUSINESS AND GOVERNANCE PRACTICES RATHER THAN TO SEVER TIES WITH VALUED ADVISERS TIME WARNER AND ALPINE ARE IN THE PROCESS OF RECASTING THEIR RELATIONSHIP TO PROVIDE A LONGTERM ARRANGEMENT FOR ALPINE TO CONTINUE AS A VALUED ADVISER AND PRIVATE BANKER SAID A COMPANY SPOKESMAN UNDER THE PROPOSED RELATIONSHIP MEMBERS OF ALPINE CAPITAL WOULD NO LONGER BE TIME WARNER EMPLOYEES MR ABOODI DECLINED TO COMMENT BUT MR ADELSON ACKNOWLEDGED IN A STATEMENT THAT TIME WARNER HAS CUT ITS FINANCIAL TIES TO HIS FIRM EAST WEST WILL CONTINUE TO PURSUE ITS INDEPENDENT BUSINESS GOALS AND OBJECTIVES AND I WILL REMAIN A LARGE HOLDER OF TIME WARNER AND A MEMBER OF ITS BOARD HE SAID MR ADELSON OWNS 360000 SHARES OF TIME WARNER IN ADDITION TO REVISING SUCH ARRANGEMENTS MR LEVIN HAS ALSO OVERSEEN A RESTRUCTURING OF THE TIME WARNER BOARD WHICH CULMINATED IN DECEMBER IN THE REMOVAL OF MOST INSIDE DIRECTORS AND A REDUCTION OF BOARD MEMBERS TO 15 FROM 21 SINCE THEN THE COMPANY HAS REALIGNED BOARD COMMITTEE MEMBERSHIP ASSIGNING ONLY OUTSIDE DIRECTORS TO THE COMPENSATION AND NOMINATIONS COMMITTEES IT ALSO INSTITUTED VOTING BY SECRET BALLOT FOR DIRECTORS AND A MANDATORY RETIREMENT AGE THAT BARS DIRECTORS FROM STANDING FOR REELECTION AFTER AGE 70 9302250012 930225 BLACK & DECKER POSTS 1228 MILLION LOSS FOR FOURTH QUARTER TOWSON MD BLACK & DECKER CORP POSTED A 1228 MILLION LOSS FOR THE FOURTH QUARTER AFTER RECORDING A CHARGE TO REORGANIZE SOME OF ITS BUSINESSES THE LOSS FOR THE COMPANY A MAKER OF POWER TOOLS AND HOUSEHOLD APPLIANCES AMOUNTED TO 151 A SHARE COMPARED WITH NET INCOME OF 319 MILLION OR 47 CENTS A SHARE IN THE YEAREARLIER PERIOD RESULTS INCLUDED THE RESTRUCTURING CHARGE OF 1347 MILLION OR 176 A SHARE REVENUE ROSE 36 TO 139 BILLION FROM 135 BILLION SHARES OUTSTANDING INCREASED TO 834 MILLION COMPARED WITH 618 MILLION IN 1991 REFLECTING A PUBLIC OFFERING IN MAY 1992 THE COMPANY SAID 91 MILLION OF THE RESTRUCTURING CHARGE RELATES TO REVAMPING ITS DYNAPERT UNIT A MAKER OF PRINTED CIRCUITBOARD ASSEMBLY EQUIPMENT THE REMAINDER OF THE CHARGE IS DEDICATED TO REDUCING MANUFACTURING OVERCAPACITY IN CONSUMER AND COMMERCIAL BUSINESSES ESPECIALLY IN EUROPE BLACK & DECKER ALSO ANNOUNCED IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE ISSUANCE FROM TIME TO TIME OF AS MUCH AS 1 BILLION IN DEBT SECURITIES FOR THE YEAR BLACK & DECKER REPORTED A NET LOSS OF 3336 MILLION OR 452 A SHARE COMPARED WITH NET INCOME OF 53 MILLION OR 81 CENTS A SHARE REVENUE INCREASED 31 TO 478 BILLION FROM 464 BILLION THE COMPANY HAD 763 MILLION AVERAGE SHARES OUTSTANDING IN 1992 COMPARED WITH 617 MILLION AVERAGE SHARES OUTSTANDING IN 1991 THE YEAR'S RESULTS INCLUDED A CUMULATIVE CHARGE OF 2498 MILLION OR 327 A SHARE AND INCREMENTAL EXPENSE OF 5 MILLION OR SEVEN CENTS A SHARE ASSOCIATED WITH THE ADOPTION OF ACCOUNTING METHODS TO ACCOUNT FOR POSTRETIREMENT BENEFITS 9302250011 930225 FINANCING BUSINESS UNION CARBIDE CORP UNION CARBIDE CORP DANBURY CONN SAID ITS UNION CARBIDE CHEMICALS & PLASTICS CO UNIT WILL CALL ON MARCH 16 ITS OUTSTANDING 75 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2012 AT A PRICE EQUAL TO 1038 OF THE PRINCIPAL AMOUNT OF 345 MILLION PLUS ACCRUED INTEREST THE COMPANY SAID HOLDERS WILL HAVE THE RIGHT TO REDEEM THE DEBENTURES FOR CASH OR CONVERT THEM INTO CARBIDE COMMON STOCK AT A PRICE OF 1579 A SHARE AT THAT PRICE EACH 1000 BOND IS CONVERTIBLE INTO 6333 SHARES OF STOCK THE COMPANY SAID ACCRUED INTEREST WON'T BE PAID TO HOLDERS WHO CONVERT DEBENTURES INTO STOCK IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CARBIDE SHARES ROSE 375 CENTS TO 17 9302250010 930225 MARKETING & MEDIA CABLEVISION'S NEW SYSTEM MAY STEP UP CABLE RACE NEW YORK THE INTERACTIVE ELECTRONIC SUPERHIGHWAY THAT CABLEVISION SYSTEMS CORP WILL ANNOUNCE TODAY WILL LIKELY INTENSIFY THE RACE TO BUILD THE CABLE SYSTEM OF THE FUTURE BY GOING FAR BEYOND ANYTHING THAT RIVALS HAVE UNVEILED SO FAR WHILE TIME WARNER INC UNVEILED PLANS LAST MONTH TO BUILD SUCH A SYSTEM INITIALLY SERVING 4000 HOMES IN ORLANDO FLA CABLEVISION HAS SET PLANS TO ROLL OUT ITS VERSION SERVING 11 MILLION SUBSCRIBERS IN THE NEW YORK METROPOLITAN AREA IT ALREADY HAS LAID 1400 MILES OF THE FIBEROPTIC BACKBONE AND NOW WILL FOCUS ON GOING DEEPER INTO NEIGHBORHOODS WITH THE STATEOFTHEART WIRING CABLEVISION THE FOURTHLARGEST US CABLE OPERATOR SAYS ITS 300 MILLION FULLSERVICE FIBEROPTIC SYSTEM WILL PROVIDE MOVIES ON DEMAND ALTERNATE ACCESS PHONE SERVICES VIDEOCONFERENCING INTERACTIVE GAMES AND A SLATE OF OTHER INFORMATION AND ENTERTAINMENT SERVICES BUT THE CABLE COMPANY IS A LONG WAY FROM BEING ABLE TO DELIVER SUCH NEWFANGLED BELLS AND WHISTLES DESPITE THE FIBER IT HAS INSTALLED IT COULD TAKE SEVERAL YEARS BEFORE MANY OF THE SERVICES ARE WIDELY AVAILABLE AND DELIVERING THEM WILL REQUIRE SOPHISTICATED SOFTWARE AND SWITCHING EQUIPMENT CABLEVISION OWNS SYSTEMS REACHING 17 MILLION SUBSCRIBERS WITH 11 MILLION OF THEM IN THE NEW YORK METROPOLITAN AREA AND LONG ISLAND THE COMPANY SAID THOSE CUSTOMERS WILL IMMMEDIATELY SEE MORE CHANNELS AND IMPROVED TV PICTURES WITH MORE HIGHTECH FEATURES TO FOLLOW WHEN EXACTLY ISN'T QUITE CLEAR LAST MONTH TIME WARNER SAID ITS ORLANDO SYSTEM WOULD BE OPERATIONAL BY EARLY NEXT YEAR MORE CABLE COMPANIES ARE EXPECTED TO MAKE SIMILAR ANNOUNCEMENTS AS THEY UPGRADE THEIR SYSTEMS TO COMPETE IN THE COMING WORLD OF 500 CHANNELS 9302250009 930225 BROKERAGE FIRMS BEAT THE MARKET WITH STOCK PICKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL TAKEN YOUR BROKER TO LUNCH LATELY MAYBE YOU SHOULD MAJOR BROKERAGE HOUSES TORE UP THE TRACK IN STOCKPICKING LAST YEAR FOURTEEN OUT OF 15 MAJOR BROKERAGE HOUSES BEAT THE OVERALL STOCK MARKET WITH THEIR RECOMMENDED LISTS OF STOCKS TO BUY ACCORDING TO A QUARTERLY STUDY BY THE WALL STREET JOURNAL AND ZACKS INVESTMENT RESEARCH OF CHICAGO BUT THIS YEAR THE WINDS OF POLITICAL CHANGE COULD MAKE STOCKPICKING A TOUGHER CHALLENGE WALL STREET RESEARCH DIRECTORS SAY I DON'T THINK THERE'S EVER BEEN A MARKET THAT'S GONE UP WHERE YOU'VE HAD A TAX INCREASE SAYS ALFRED G JACKSON ACTING DIRECTOR OF RESEARCH AT FIRST BOSTON IT'S KIND OF LIKE DANCING THROUGH A MINE FIELD SAYS DAVID HENWOOD RESEARCH DIRECTOR AT RAYMOND JAMES HE THINKS THE TAX INCREASES PROPOSED BY PRESIDENT CLINTON WILL SLOW THE ECONOMY IN 1994 AND 1995 SO HE IS FORECASTING ONLY A SKIMPY GAIN FOR STOCKS THIS YEAR 5 TO 10 PROBABLY CLOSER TO 5 AND HE IS RECOMMENDING FEWER ECONOMYSENSITIVE STOCKS WITH SLOW GROWTH THE CYCLICALS DON'T PLAY AS WELL RAYMOND JAMES RANKED FIRST IN THE STUDY FOR STOCKPICKING PROWESS IN THE FOURTH QUARTER THE YEAR OF 1992 AND THE FIVE YEARS ENDED IN DECEMBER THE ST PETERSBURG FLA FIRM FAVORS SMALLCOMPANY GROWTH STOCKS OFTEN OF COMPANIES IN THE SOUTHEAST AT THE MOMENT RAYMOND JAMES LIKES SELECTED GAMBLING STOCKS BANKS RETAILERS AND FURNITURE MAKERS SOME GAMBLING STOCKS HAVE GOTTEN BEATEN UP RECENTLY SAYS MR HENWOOD PROMUS AND SHOWBOAT WOULD BOTH BE STRONG FAVORITES AS WOULD MIRAGE BANKS REMAIN A VIABLE AREA HE SAYS LONGTERM RATES ARE CERTAINLY GOING TO BE LOWER THAN WE WOULD HAVE THOUGHT A COUPLE OF MONTHS AGO RAYMOND JAMES RECOMMENDS AMSOUTH BANCORP FIRST UNION AND SOUTHTRUST ALL OF THEM SOUTHEASTERN REGIONAL BANKS IN THE RETAILING AREA THE FIRM FAVORS EDISON BROTHERS STORES MERRYGOROUND ENTERPRISES AND DISCOUNT AUTO PARTS AMONG FURNITURE MAKERS IT LIKES LADD FURNITURE AND PULASKI FURNITURE WHERE REVENUE AND EARNINGS ARE PICKING UP NICELY RAYMOND JAMES HAS BEEN TROUBLED LATELY BY APPARENT LEAKS THERE HAVE BEEN BUYING FLURRIES IN SOME STOCKS IT RECOMMENDS JUST BEFORE IT RECOMMENDS THEM THEY MAY NOT BE INTERNAL LEAKS THEY COULD BE EXTERNAL LEAKS SAYS MR HENWOOD WE ASKED THE NEW YORK STOCK EXCHANGE AND THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TO DO A DETAILED ANALYSIS OF THESE TRADES THAT'S BEING DONE THE PROBLEM HE SAYS IS SUCKING UP HUNDREDS OF HOURS OF MANAGEMENT TIME RUNNERUP IN THE 1992 STOCKPICKING DERBY AND ALSO SECOND FOR THE FIVEYEAR SPAN WAS AG EDWARDS & SONS OF ST LOUIS AT 3300 TO 3400 ON THE DOW YOU'RE LOOKING AT A PRETTY FAIRLY VALUED MARKET SAYS TERRY DESSENT RESEARCH DIRECTOR BUT SELECTIVELY WE THINK THERE STILL CAN BE STOCKS THAT ARE WORTH BUYING MR DESSENT THINKS ENERGY STOCKS SUCH AS APACHE CHEVRON AND EXXON DESERVE A LOOK THE WORLDWIDE SUPPLYDEMAND BALANCE LOOKS INCREASINGLY FAVORABLE FOR ENERGY PRODUCERS HE SAYS AND THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS SHOWING MORE INTERNAL COOPERATION THAN USUAL AG EDWARDS HAS LONG FAVORED JOHN NUVEEN A MUNICIPAL BOND DEALER AND SELLER OF MUNICIPALBOND MUTUAL FUNDS WITH THE CLINTON TAX PROPOSALS THAT LOOKS LIKE AN EVEN MORE LOGICAL STOCK SAYS MR DESSENT MUNICIPALBOND INTEREST INCOME GENERALLY IS EXEMPT FROM FEDERAL INCOME TAX AT PRUDENTIAL SECURITIES WHICH RANKED THIRD FOR 1992 RESEARCH CHIEF MICHAEL CULP SAYS THAT A GOOD STOCK THESE DAYS HAS STRONG FUNDAMENTALS AND IS EITHER CLINTONNEUTRAL OR HELPED A LITTLE BIT BY CLINTON PRUDENTIAL IS KEEN ON THE SEMICONDUCTOR INDUSTRY CLINTON SEEMS TO BE TECHNOLOGYFRIENDLY MR CULP ASSERTS INTEL A CHIP MANUFACTURING POWERHOUSE IS PRUDENTIAL'S FAVORITE IN THE GROUP FOUR OTHER GROUPS PRUDENTIAL LIKES AND ITS BEST IDEA IN EACH ARE AIRLINES SOUTHWEST AIRLINES PAPER AND FOREST PRODUCTS GEORGIAPACIFIC CONSUMER DURABLES MAGNA INTERNATIONAL AND FINANCIAL SERVICES CHEMICAL BANKING AND ADVANTA RUNNERUP FOR THE FOURTH QUARTER WITH AN ESTIMATED 175 GAIN FOR ITS FOCUS LIST WAS FIRST BOSTON THE NEW YORK FIRM WAS ONE OF FIVE BROKERAGE HOUSES RECENTLY ADDED TO THE JOURNALZACKS STUDY FIRST BOSTON'S MR JACKSON SAYS INVESTORS SHOULD GO EASY ON STOCKS THAT DEPEND ON CONSUMER SPENDING THE FIRM LIKES BANKS THAT COULD BEEF UP PROFITS THROUGH COSTCUTTING SUCH AS CHEMICAL BANKING MELLON BANK AND MERIDIAN BANCORP RECENT ADDITIONS TO FIRST BOSTON'S LIST INCLUDE TERADYNE AND MICRON TECHNOLOGY MR JACKSON SAYS HE WOULD LIKE TO HAVE MORE ENERGY STOCKS ON THE LIST AT DEAN WITTER THIRD FOR THE FIVEYEAR SPAN RESEARCH DIRECTOR MANNY KORMAN SAYS TAX INCREASES MIGHT SAP SOME OF THE STRENGTH OF THE CYCLICALS PARTICULARLY BECAUSE MANY HEAVYINDUSTRIAL COMPANIES COULD BE HARDHIT BY NEW ENERGY TAXES MR KORMAN FIGURES THE LOW LEVEL OF INTEREST RATES MAKES YIELD VEHICLES VERY ATTRACTIVE UTILITY STOCKS AND REAL ESTATE INVESTMENT TRUSTS GET HIS NOD NATURAL GAS PIPELINES ARE VERY ATTRACTIVE HE SAYS NOTABLY EL PASO NATURAL GAS AND WILLIAMS COS TWO FIRMS TAKE SOME EXCEPTION TO THE STUDY'S METHODOLOGY BYRON WIEN DOMESTIC EQUITY STRATEGIST FOR MORGAN STANLEY NOTES THAT THE STUDY TREATS HIS MODEL PORTFOLIO AS IF ALL STOCKS WERE EQUALLY WEIGHTED IN FACT HE GAVE DOUBLE OR TRIPLE WEIGHT TO A FEW SUCH AS INTEL CHRYSLER AND APPLE COMPUTER HAD THOSE WEIGHTINGS BEEN USED HE CALCULATES THE FIRM'S 1992 GAIN WOULD HAVE BEEN WELL OVER 16 THAT WOULD HAVE PLACED MORGAN STANLEY NINTH INSTEAD OF TENTH MERRILL LYNCH DISSENTS FROM ITS FIVEYEAR PERFORMANCE FIGURE THOUGH IT DOESN'T QUARREL WITH THE QUARTERLY OR ONEYEAR RESULTS UNTIL THE FALL OF 1991 MERRILL DECLINED TO SPECIFY A LIST OF STOCKS ON WHICH TO BE JUDGED IN RETROSPECT IT OBJECTS TO THE LIST CHOSEN BY THE JOURNAL RICK CHRABASZEWSKI ANALYST AT ZACKS NOTES THAT 1992 WAS A YEAR OF DAZZLING FIREWORKS FOR SMALLCOMPANY STOCKS IT'S NOT SURPRISING HE SAYS THAT A FIRM SUCH AS RAYMOND JAMES WHICH SPECIALIZES IN SMALL STOCKS WAS AT THE TOP OF THE RANKINGS WHILE SMITH BARNEY HARRIS UPHAM WHICH PICKED THE BIGGEST STOCKS ON AVERAGE WAS AT THE BOTTOM THE PERFORMANCE ESTIMATES IN THE ACCOMPANYING TABLE ARE THE FIRST ONES IN WHICH THE CRASH OF 1987 PLAYS NO ROLE THUS THE FIVEYEAR NUMBERS ROSE SHARPLY FOR ALL FIRMS AND PARTICULARLY STRONGLY FOR RAYMOND JAMES WHOSE STOCKS TOOK THE WORST DIVE IN THE 1987 CRASH ESTIMATED PERFORMANCE OF STOCKS ON THE RECOMMENDED LIST OF MAJOR BROKERAGE HOUSES THROUGH DEC 31 FIGURES INCLUDE PRICE CHANGES AND DIVIDENDS BUT NOT COMMISSIONS INDIVIDUAL INVESTORS' RESULTS WILL VARY FEWER THAN FIVE YEARS 9302250008 930225 IRS RELEASES DATA ON TAXES OF FIRMS OWNED BY FOREIGNERS WASHINGTON THE INTERNAL REVENUE SERVICE RELEASED FIGURES SHOWING THAT DOMESTIC COMPANIES OWNED BY FOREIGNERS HAD NET INCOME OF 83 BILLION IN 1989 AND REPORTED TOTAL US INCOME TAX LIABILITY OF 62 BILLION FOR 1988 FOREIGNCONTROLLED COMPANIES HAD NET INCOME OF 112 BILLION AND TAX LIABILITY AFTER CREDITS OF 58 BILLION THE FIGURES THOUGH FOUR YEARS OLD ARE THE LATEST AVAILABLE AND ARE BOUND TO ADD TO THE DEBATE OVER WHETHER FOREIGN COMPANIES ARE PAYING THEIR SHARE OF US TAXES OVERALL THE IRS DATA ALSO SHOW THAT THE 44840 DOMESTIC COMPANIES CONTROLLED BY FOREIGN ENTITIES GENERATED 1 TRILLION OF WORLDWIDE RECEIPTS IN 1989 AND HAD TOTAL ASSETS OF 14 TRILLION MORE THAN 25 OF THE RECEIPTS WERE REPORTED BY JAPANESEOWNED COMPANIES BRITISHOWNED COMPANIES REPORTED 18 PRESIDENT CLINTON HAS ASSERTED THAT FOREIGNOWNED COMPANIES ARE AVOIDING US TAXES BY MANIPULATING THE PRICES OF ASSETS AS THEY ARE TRANSFERRED BETWEEN SUBSIDIARIES AT HOME AND ABROAD REPRESENTATIVES OF FOREIGNBASED COMPANIES AND MANY INDEPENDENT TAX EXPERTS DISPUTE THAT SUCH ABUSE IS WIDESPREAD FOREIGN COMPANIES ALSO NOTE THAT THE AMOUNT OF US TAXES PAID BY FOREIGNOWNED COMPANIES HAS BEEN CLIMBING FAIRLY STEADILY SINCE 1983 NONETHELESS THE CLINTON ADMINISTRATION HAS PLEDGED TO CRACK DOWN ON MULTINATIONAL COMPANIES US AND FOREIGN ALIKE THAT ENGAGE IN IMPROPER TRANSFER PRICING PRACTICES YESTERDAY TREASURY SECRETARY LLOYD BENTSEN TOLD THE SENATE FINANCE COMMITTEE THAT THE ADMINISTRATION WOULD LAUNCH A SWEEPING NEW ENFORCEMENT INITIATIVE IN THIS AREA TREASURY OFFICIALS HAVE SAID THOSE PLANS CALL FOR DOUBLING THE NUMBER OF IRS AGENTS POLICING THOSE TYPES OF TRANSACTIONS 9302250007 930225 ENTERPRISE CLINTON'S PLAN SEEN BOOSTING SMALLBUSINESS LOANS BUT SOME BANKERS ENTREPRENEURS ARE SKEPTICAL ABOUT CHARACTER' LENDING BY STEVEN LIPIN AND UDAYAN GUPTA STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S DRIVE TO ENCOURAGE LENDING TO SMALL BUSINESSES WON'T OPEN THE CREDIT FLOODGATES BUT IT SHOULD MODERATELY BOOST BANK LENDING TO CASHSTARVED SMALL BUSINESSES BANKERS AND ENTREPRENEURS SAY ON TUESDAY MR CLINTON SAID THE ADMINISTRATION IS CONSIDERING INITIATIVES INTENDED TO ENCOURAGE BANK LENDING TO SMALL ENTERPRISES IN PARTICULAR THE ADMINISTRATION WANTS TO ENCOURAGE CHARACTER LOANS WHICH RELY HEAVILY ON SUBJECTIVE EVALUATIONS OF A BORROWER'S TRUSTWORTHINESS RATHER THAN JUST STRICT FINANCIAL CRITERIA THE ADMINISTRATION ALSO IS EXPECTED TO SEEK TO EASE THE THICKET OF RED TAPE AND REGULATORY BURDENS THAT RAISE LENDING COSTS AND INDIRECTLY AFFECT THE AVAILABILITY OF BANK CREDIT BANKS HAVE LOBBIED THE ADMINISTRATION TO EASE REGULATIONS SO THEY CAN MAKE MORE CHARACTER LOANS IT'S GOOD NEWS AND A STEP IN THE RIGHT DIRECTION SAID JOEL ALVORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SHAWMUT NATIONAL CORP HARTFORD CONN BUT SOME BANKERS HAVE THEIR DOUBTS CHARACTER IS PART OF LENDING BUT WE WOULDN'T RELY STRICTLY ON CHARACTER SAYS TERRY JORDE PRESIDENT OF TOWNER COUNTY STATE BANK A 23MILLION BANK IN CANDO ND ENTREPRENEURS ALSO ARE SKEPTICAL IT'S WISHFUL THINKING BANKS DON'T LEND ON CHARACTER THEY LEND ON RECEIVABLES SAYS EDWARD A GAZVODA PRESIDENT OF DEMAND TECHNOLOGIES INC A NEW YORK MANUFACTURER OF ENERGY CONTROL SYSTEMS DEMAND TECHNOLOGIES WHICH EXPECTS SALES OF ABOUT 2 MILLION THIS YEAR SAYS IT HAS BEEN UNABLE TO PERSUADE BANKS TO LEND IT A DIME THOUGH THE 18MONTHOLD COMPANY COMPLETED AN 800000 SALE TO A LOCAL UTILITY THIS MONTH AND PLANS TO HIRE 15 MORE EMPLOYEES BANKS WANT US TO BE IN BUSINESS FOR AT LEAST THREE YEARS BEFORE THEY'LL EVEN TALK TO US MR GAZVODA SAYS CHARACTER LENDING WON'T DO MUCH FOR FASTGROWING TECHNOLOGY COMPANIES WITHOUT HUGE ASSETS OR RECEIVABLES HE SAYS MILES SPENCER A PRINCIPAL OF COVE ASSOCIATES AN INVESTMENT BANKING CONCERN IN NORWALK CONN ASSERTS THAT ON A PERLOAN BASIS SMALLBUSINESS LOANS ARE EXTREMELY PROFITABLE FOR LENDERS HIS CLIENTS CURRENTLY PAY BETWEEN TWO TO FIVE POINTS ABOVE THE PRIME RATE ALMOST DOUBLE WHAT BIG BORROWERS ARE CHARGED WITH EXTRA INCENTIVES HE SUGGESTS THERE'S NO REASON WHY BANKS SHOULDN'T MAKE MORE SUCH PROFITABLE LOANS MOREOVER THE CLINTON PROPOSALS COME AT A TIME WHEN THE ECONOMY IS PICKING UP BANK CAPITAL HAS BEEN RESTORED AND THE ECONOMICS OF BANKING IS LEANING MORE TOWARD LENDING THAN LOADING UP ON DEBT SECURITIES ALREADY NATIONWIDE HOLDINGS OF SECURITIES HAVE FALLEN TO 21 OF ASSETS IN JANUARY FROM 237 IN DECEMBER DESPITE SIGNS THAT LENDING IS INCREASING AGAIN THERE ARE OTHER FORCES OUT OF MR CLINTON'S CONTROL AS THE BUSH ADMINISTRATION DISCOVERED WHEN IT UNSUCCESSFULLY TRIED TO JUMPSTART LENDING TO SMALL AND MEDIUMSIZE COMPANIES FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN YESTERDAY WARNED THAT THE CLINTON INITIATIVES TO EASE THE REGULATORY BURDEN ON US COMMERCIAL BANKS MAY NOT RESULT IN A SIGNIFICANT INCREASE IN LENDING LENDERS ARE GUNSHY AFTER LOOSE STANDARDS IN THE 1980S LED TO A FLOOD OF BAD LOANS AND A SEA OF RED INK THE MAJOR PROBLEM WE HAVE HERE IS FEAR ON THE PART OF BANKERS AND THAT IS NOT EASY TO RESOLVE MR GREENSPAN SAID THE CLINTON PROPOSALS WHICH HAVE YET TO BE FULLY FLESHED OUT AREN'T GOING TO PRODUCE A QUICK FIX FOR SMALL BUSINESSES SAYS MARTIN TRIMBLE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF COMMUNITY DEVELOPMENT LOAN FUNDS A PHILADELPHIA GROUP REPRESENTING FUNDS THAT LEND TO COMMUNITYBASED BUSINESSES BUT EVEN SOCIETY FOR SAVINGS' MR CONNELL A BANK TURNAROUND SPECIALIST AND FORMER REGULATOR WELCOMES PRESIDENT CLINTON'S PLAN TO EASE BANKS' PAPERWORK BURDEN HE BELIEVES IT WILL FREE UP MORE LOAN MONEY WITHOUT JEOPARDIZING BANKS' SAFETY AND SOUNDNESS REGULATORS ALSO COULD HELP BY REQUIRING UNIFORM DOCUMENTS CONTINENTAL BANK CORP FOR INSTANCE SAYS THAT IT SPENDS 1 MILLION A YEAR TO TRANSLATE VARIOUS REGULATORY DOCUMENTS EVERY REGULATORY AGENCY HAS UNIQUE RULES REQUIRING A SEPARATE SET OF BOOKS IT'S NOT ONE COLOSSAL ITEM THAT LOOMS LARGE IT'S THE DAILY COST ELEMENTS WHICH KEEPS PILING ON THAT'S REALLY EXPENSIVE SAYS THOMAS THEOBALD CHAIRMAN AND CHIEF EXECUTIVE OF THE CHICAGO BANK MS JORDE OF TOWNER COUNTY STATE BANK AGREES FOR EXAMPLE THE BANK WAS FORCED TO PURCHASE A 10000 PIECE OF MACHINERY IN LATE 1989 TO COMPLY WITH THE FEDERAL EXPEDITED FUNDS TRANSFER ACT ITS REGULATIONS REQUIRE BANKS TO ENDORSE EACH CHECK AT A PARTICULAR SPOT ON THE BACK THIS HAS NOTHING TO DO WITH SAFETY AND SOUNDNESS ARGUES MS JORDE WHOSE BANK HAS AN ABOVEAVERAGE EQUITYCAPITAL RATIO THE FEWER DOLLARS BANKS SPEND ON RED TAPE THE MORE THEY WILL HAVE FOR LENDING TO SMALL BUSINESSES BANKERS SAY MANY ENTREPRENEURS SHARE THAT VIEW THERE HAS TO BE A CLEARCUT CONCEPT OF HOW OUR FINANCIAL INSTITUTIONS CAN DISBURSE FUNDS EVERYTHING NOW IS SO CONTRADICTORY SAYS MARVIN M ROMANEK MANAGING DIRECTOR OF ROMANEK PROPERTIES LTD A CHICAGO REALESTATE DEVELOPER OTHER SMALL COMPANIES SAY THEY NEED FEDERAL INITIATIVES THAT WILL EXPAND NOT JUST THEIR WORKING CAPITAL BUT ALSO GROWTH CAPITAL THE NORTHERN GROUP A PLAINVIEW NY DISTRIBUTOR OF FRAGRANCES AND COSMETICS WHICH SAYS IT HAD REVENUE OF 34 MILLION LAST YEAR ALREADY HAS A 6 MILLION LINE OF CREDIT WE HAVE THE ABILITY TO EXPAND FASTER THAN OUR ASSETS AND RETAINED EARNINGS WILL ALLOW US TO SAYS MARK CRAMES CHIEF EXECUTIVE OFFICER BUT BECAUSE BANKS ARE LENDING STRICTLY ON RATIOS NORTHERN CAN'T GET ENOUGH ADDITIONAL CREDIT TO EXPAND MR CRAMES COMPLAINS 9302250006 930225 LETTERS TO THE EDITOR BOUTROSGHALI WRONGLY ACCUSED YOUR FEB 3 EDITORIAL THE 38TH FLOOR ACCUSES UN SECRETARYGENERAL BOUTROS BOUTROSGHALI OF TAKING SIDES ON A MATTER BEFORE THE SECURITY COUNCIL WITH REGARD TO ISRAEL'S DEPORTATION OF PALESTINIANS AND OF ERODING THE UNITED STATES'S PRESENCE IN THE UN SECRETARIAT OFFICE WITH REGARD TO THE POSITION OF UNDERSECRETARYGENERAL FOR ADMINISTRATION AND MANAGEMENT BOTH CHARGES ARE FALSE AND INDICATE A PROFOUND MISUNDERSTANDING OF HOW THE UNITED NATIONS WORKS THE SECURITY COUNCIL IN ITS RESOLUTION 799 ADOPTED UNANIMOUSLY DEMANDED THE IMMEDIATE RETURN OF ALL THOSE DEPORTED THE COUNCIL REQUESTED THE SECRETARYGENERAL TO DISPATCH A REPRESENTATIVE TO ISRAEL AND TO REPORT BACK TO THE COUNCIL AFTER THREE SUCH MISSIONS OVER THE COURSE OF A MONTH THE SECRETARYGENERAL ON JAN 25 INFORMED THE SECURITY COUNCIL THAT THIS EFORT HAD FAILED TO PRODUCE COMPLIANCE WITH RESOLUTION 799 THE SECRETARYGENERAL'S POSITION IS BASED SQUARELY UPON HIS OBLIGATION TO SUPPORT FULLY THE DECISIONS OF THE SECURITY COUNCIL THE US TRADITIONALLY HAS BEEN REPRESENTED WITHIN THE SECRETARIAT AT THE UNDERSECRETARYGENERAL LEVEL AND THAT WILL CONTINUE TO BE THE CASE IT WAS THE SECRETARYGENERAL'S PERSONAL INITIATIVE WITH PRESIDENT BUSH THAT LED TO THE ADMINISTRATION AND MANAGEMENT POSITION BEING FILLED BY AN AMERICAN MOREOVER I SHOULD POINT OUT THAT REFORM STARTED BEFORE THENATTORNEY GENERAL RICHARD THORNBURGH'S ARRIVAL AND WILL CONTINUE AFTER HIS DEPARTURE AGAINST THIS BACKGROUND I CAN ASSURE YOU THAT PERSONNEL DECISIONS IN THE SECRETARIAT ARE MERITBASED THAT SIGNIFICANT REFORM IS TAKING PLACE AND THAT LIFE AT THE UN IS ANYTHING BUT BUSINESS AS USUAL 9302250005 930225 LETTERS TO THE EDITOR PROPERTY OWNERS PLAY ON A TILTED FIELD THE DEBATE ABOUT THE COSTS AND BENEFITS OF FREE LEGAL REPRESENTATION FOR THE POOR RULE OF LAW DEC 30 AND LETTERS TO THE EDITOR JAN 26 FALLS BY THE WAYSIDE WHEN A COURT ADMINISTRATION ITSELF IN EFFECT BECOMES THE PRO BONO REPRESENTATIVE FOR INDIGENT AND NOT SO INDIGENT CLIENTS TWO YEARS AGO THE RENT STABILIZATION ASSOCIATION OF RENTAL PROPERTY OWNERS FILED SUIT IN FEDERAL COURT AGAINST THE ADMINISTRATORS OF THE NEW YORK CITY HOUSING COURTS IT ALLEGED A SYSTEMIC BIAS AGAINST OWNERS AND VIOLATIONS OF THEIR CONSTITUTIONAL RIGHTS RESULTING FROM THE FAILURE OF JUDGES TO ABIDE BY THE LAW AND PROVIDE OWNERS WITH DUE PROCESS THE COURT ADMINISTRATION AGREED TO 17 DISTINCT CHANGES IN HOUSING COURT PROCEDURE UNFORTUNATELY ONE YEAR AND 2500 COMPLAINTS LATER WE FOUND IT NECESSARY TO REINSTATE THE SUIT BECAUSE THE TERMS OF THE STIPULATION HAD NOT BEEN HONORED THE LEGAL AID SOCIETY HAS MOVED TO INTERVENE IN THE LAWSUIT APPARENTLY BECAUSE THE PROPERTY OWNERS' REQUEST FOR A LEVEL PLAYING FIELD IN THE COURTS MAY AFFECT THE INTERESTS OF TENANTS REMARKABLY THE COURT HAS ACQUIESCED TO LEGAL AID'S TAKING AN ACTIVE ROLE IN THE LITIGATION IMPLICITLY SIDING ITSELF WITH LEGAL AID AND TENANTS AGAINST PROPERTY OWNERS THUS IT HAS BECOME CLEAR THAT PRO BONO REPRESENTATION IN NEW YORK CITY AT LEAST IS NOT ONLY ECONOMICALLY COUNTERPRODUCTIVE BUT UNNECESSARY AS THE COURT SYSTEM ITSELF TOGETHER WITH PUBLICLY FUNDED LEGAL AID GROUPS HAVE CONSPIRED TO PROTECT MORE THAN ADEQUATELY THE INTERESTS OF TENANTS WHETHER OR NOT THEY ARE POOR RENT STABILIZATION ASSOCIATION OF NEW YORK CITY INC 9302250004 930225 EXGENERAL DESTROYS THE RUSSIAN ARMS HE ONCE PRODUCED BY PHILIP REVZIN AND KAREN ELLIOTT HOUSE STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW GEN BORIS BELOUSSOV IS THE EMBODIMENT OF RUSSIAN MILITARY CONVERSION THE FORMER HEAD OF SOVIET DEFENSE PRODUCTION HE PRESIDED OVER THE BUILDING OF THE SS20 MEDIUMRANGE MISSILE DOZENS OF TYPES OF TANKS AND HOWITZERS AND A FRIGHTENING ARSENAL OF CONVENTIONAL NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS BUT AS THE PRESIDENT OF METALKHIM A GOVERNMENTOWNED COMPANY THE 58YEAROLD MR BELOUSSOV IS NOW DISMANTLING FOR PROFIT THE VERY ARMS HE HELPED BUILD ON A BOOKSHELF IN HIS MOSCOW OFFICE NEAR A MODEL OF A TANK SITS A MOUNTED FRAGMENT OF AN SS20 GEN BELOUSSOV'S COMPANY HAS LEAPT HEADLONG INTO CONVERSION PROJECTS HE SAYS THE PLANTS THAT ONCE MADE TANKS NOW CHURN OUT TWO MILLION REFRIGERATORS A YEAR A PLANT THAT MADE RADIOCONTROLLED DETONATORS MAKES REDPLASTIC BOOMBOXES SAMOVARS BICYCLES WASHING MACHINES WATCHES AND PLASTIC SQUEEZE TOYS NOW COME OFF ASSEMBLY LINES THAT ONCE MADE SS20S AND OTHER WEAPONS HE SAYS A GUNPOWDER PLANT NOW PRODUCES 25 MILLION TAMPONS A YEAR SO PROUD OF THIS IS GEN BELOUSSOV THAT HE DROPS A TAMPON INTO A GLASS OF WATER TO SHOW HIS VISITORS ITS ABSORBENCY WHILE THE QUALITY OF MOST OF THESE PRODUCTS IS POOR THE RADIOS ARE PERHAPS FIVE YEARS BEHIND JAPANESE QUALITY AND TECHNOLOGY AND THE PLASTIC SQUEEZE TOYS ARE CRUDE WESTERN EXPERTS SAY AT LEAST THE DEFENSE PLANTS ARE FUNCTIONING UNLIKE MOST OF THE REST OF RUSSIA'S ECONOMY TO A LARGE EXTENT THESE PLANTS ARE THE RUSSIAN ECONOMY ALEXANDER P VLADISLAVLEV CHAIRMAN OF THE INDUSTRIALISTS AND ENTREPRENEURS UNION OF RUSSIA ESTIMATES THAT DEFENSE PLANTS PRODUCE MORE THAN 20 OF THE RUSSIAN GROSS DOMESTIC PRODUCT EMPLOY THE BEST 75 MILLION WORKERS IN THE COUNTRY AND CONSUME MORE THAN 75 OF ALL GOVERNMENT OUTLAYS ON SCIENCE GEN BELOUSSOV IS EMBRACING CAPITALISM WITH THE SAME DEVOTION HE ONCE USED IN SERVING COMMUNISM DRIVING THROUGH GRAY MOSCOW STREETS EARLY ONE WINTER MORNING HE SAYS HE HAD DEVOTED HIS WHOLE LIFE TO COMMUNISM WORKING SIX DAYS A WEEK NOT FOR MONEY BUT BECAUSE HE BELIEVED IN IT NOW I AM BEING ASKED TO REJECT ALL THAT HE SAYS MY MOTIVATION WASN'T MORE MONEY I WORKED IN THAT WAY BECAUSE I BELIEVED I COULD DO SOMETHING FOR SOCIETY NOW I AM BEING TOLD THAT EVERYTHING I DID WAS WRONG TODAY YOU ARE ON YOUR OWN AND RESPONSIBLE ONLY FOR YOURSELF EVERYTHING YOU DO YOU DO FOR YOURSELF GEN BELOUSSOV'S CROWNING ACHIEVEMENT THE SS20 WON HIM A LENIN PRIZE AND ENORMOUS POWER WITHIN THE SOVIET UNION TRAPPINGS OF THAT POWER REMAIN THE OFFICE THE SECRETARY WITH 11 TELEPHONES ON HER DESK THE NINE PHONES ON THE GENERAL'S DESK THE CAR WHOSE TRUNK IS LOADED WITH MOBILECOMMUNICATIONS GEAR THE SAME LOYAL HANGERSON THE ANNUAL BEARHUNTING TRIPS WITH COMMUNIST PARTY CRONIES IN UDMURTIA HE IS A SURVIVOR HE SAYS HE WAS QUESTIONED AFTER THE ABORTIVE COUP THAT ULTIMATELY TOPPLED THE SOVIET UNION BUT THAT HE WAS IN FAROFF KAMCHATKA AT THE TIME AND PLAYED NO PART IN IT EVEN THOUGH HE IS ALL BUSINESS NOW ANGLING WITH GERMAN PARTNERS FOR CHUNKS OF THE CONTRACTS TO DESTROY THE WEAPONS HE HELPED CREATE GEN BELOUSSOV CAN AT TIMES SEEM WISTFUL ABOUT THE OLD DAYS PEOPLE IN THE WEST TELL ME HE SAYS PROUDLY THAT THE SS20 WAS THE BEST MISSILE EVER BUILT THE BEST SEE RELATED ARTICLE TOXIC DUMP ARSENAL OF POISON GAS LANGUISHES AS RUSSIA IS UNABLE TO DESTROY IT LEADERS' EFFORTS ARE BLOCKED BY ANGRY POPULACE LACK OF CASH AND KNOWHOW US TAXPAYERS MAY FOOT BILL WSJ FEB 24 1993 9302250003 930225 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN FASHION EARLY BIRDS HELP RETAILERS PLAN SPRING APPAREL DEMAND SEARS ROEBUCK & CO CALLS THE SOUTH ONE OF THE BEST BAROMETERS OF WHAT TO STOCK UP ON ELSEWHERE IN THE COUNTRY SO FAR SEARS AND OTHERS READING THE RACKS SAY LONGER SKIRTS SHEER BLOUSES CUTOUTS AND JACKETDRESSES ARE HOT BUT BELLBOTTOMS LOOK LIKE A RISKY BET SAY DALLASBASED JC PENNEY AND OKLAHOMABASED HAROLD'S STORES MACY'S AND BULLOCK'S ON THE WEST COAST POINT TO NEUTRAL TONES LIKE FLAX AND CHOCOLATE AS IMPORTANT DITTO FOR RICH'S IN ATLANTA BIG CHAINS LIKE PENNEY AND BOUTIQUES SUCH AS HARARI IN LOS ANGELES STOCK UP ON MODERATELY PRICED GOODS THAT APPEAL TO CAUTIOUS CONSUMERS WE'VE DEFINITELY BECOME MORE CONSCIOUS OF PERCEIVED VALUE SAYS GAYLE SHULMAN OF HARARI SPRING GOODS WILL TEST WHETHER SHOPPERS BUY WITHOUT THE MANDATORY DISCOUNTING OF LATE BERNARD WOLFORD OF KURT SALMON ASSOCIATES NOTES THAT SPEEDY VENDORS LET RETAILERS STALL ON SOME ORDERS UNTIL EARLY RACK RETURNS ARE IN IF RETAILERS MAKE ANY SIGNIFICANT REDUCTION IN MARKDOWNS IT MEANS BIG BIG BUCKS FOR THEM SAYS MR WOLFORD CROSS RD FNS TAKE NOTE MORE PUZZLES AND MORE HELP ARE ON THE WAY RANDOM HOUSE'S TIMES BOOKS UNIT WHICH HAS BEEN EXPANDING ITS CROSSWORD OFFERINGS LATELY IN 1994 WILL ADD A SERIES OF PUZZLE BOOKS KEYED TO VARIOUS DIFFICULTY LEVELS IT'S A HUGE MARKET SAYS PUBLISHER PETER OSNOS MEANWHILE IN BOSTON MICHAEL TONELLO AND HIS FATHER WON A PATENT FOR A CROSSWORDPUZZLE AID BASED ON A GIZMO THEY MADE AGES AGO OUT OF PLYWOOD AND POPSICLE STICKS USERS SLIDE ALPHABET STRIPS THROUGH A GRID WINDOW TO TRY OUT DIFFERENT LETTERS IS IT CHEATING TO USE HELPERS IT'S A MATTER OF PERSONAL CHOICE PUZZLES ARE FOR FUN SAYS WILL SHORTZ EDITOR OF GAMES MAGAZINE WHICH PLANS TO RIDE THE GROWTH BANDWAGON WITH A NEW ALLPUZZLE MAGAZINE THIS YEAR MR SHORTZ NOTES CALCULATORLIKE AIDS THAT SEARCH ELECTRONICALLY FOR WORDS ALREADY EXIST AND THAT MANUAL DEVICES HAVE POPPED UP BEFORE THE TONELLOS SAY THEIR DESIGN IS UNIQUE AND HAS BOTH A HORIZONTAL AND VERTICAL WINDOW TO TEST UP/DOWN WORDS DEADBEATS PUSH VIDEOSTORE OWNERS TO STRIVE FOR NEW THEFT LAWS THE VIDEO SOFTWARE DEALERS ASSOCIATION HELPS RENTAL STORES FIGHT VIDEORENTAL THEFT BY DRAFTING A MODEL LAW DEALERS HOPE THAT A STATUTE SPECIFYING THAT NONRETURN IS THEFT WILL HELP BOTH THE PUBLIC AND THE POLICE TO RECOGNIZE THE PROBLEM AS A CRIME PART OF THE TROUBLE IN PROSECUTING CASES HAS BEEN PROVING THAT THE PERSON INTENDED TO STEAL AT THE TIME OF THE RENTAL A TOWER VIDEO BRANCH IN MANHATTAN SAYS THAT EACH MONTH IT LOSES ABOUT 30 TAPES VALUED AT MORE THAN 1000 MICHIGAN VIDEO A FOURSTORE CHAIN IN FLINT MICH LAST YEAR LOST 15000 IN TAPES MORE THAN ITS TOTAL NET PROFIT SUCH LOSSES AREN'T COVERED BY INSURANCE STORE OWNERS SAY THE MODEL LAW FROM THE DEALERS ASSOCIATION DEFINES THEFT AS REFUSAL TO GIVE BACK TAPES A KEY POINT FAILURE TO RETURN VIDEOS WITHIN TWO DAYS OF RECEIVING A ROUTINE COLLECTION NOTICE THE MODEL STATUTE VIEWS THEFT OF MORE THAN 250 WORTH OF TAPES AS A FELONY SAYING CHEESE AT THEIR ANNUAL MEETING THIS WEEK IN MINNEAPOLIS ARE MEMBERS OF THE GIANT LAND O' LAKES DAIRY COOPERATIVE A PHOTO BOOTH IS SET UP TO CAPTURE YOUR ANNUAL MEETING MEMORIES SAYS THE COOP WHICH REPRESENTS 300000 FARMERS FROM WISCONSIN TO WASHINGTON THE MOVE WILL ALSO CAPTURE SOME GRADEA PR AS FARMERS CARRY THE PHOTOS HOME TO RUN IN LOCAL PAPERS SKIING IS SAFER THAN SLEEPING IN SOME EUROPEAN LODGES SAYS WHICH MAGAZINE ITS SURVEY OF 14 POPULAR RESORTS IN ITALY AUSTRIA AND SWITZERLAND FOUND THAT THE LOGCABIN CONSTRUCTION OF MANY OLD SKI HOTELS CAN CREATE A FIRE HAZARD SWISS AND AUSTRIAN OFFICIALS SAY THEY ARE TAKING ACTION THIRDSECTOR SCHOLARS AND OTHERS JOIN FORCES TO STUDY NONPROFITS AND PHILANTHROPY THROUGH THE INTERNATIONAL SOCIETY FOR THIRDSECTOR RESEARCH A NEW GROUP THAT WILL BE BASED AT JOHNS HOPKINS UNIVERSITY IN BALTIMORE THE SOCIETY WILL COORDINATE AND PROMOTE GLOBAL RESEARCH ROUND THREE FOR MSG THE FDA ORDERS UP ANOTHER LOOK AT THE FOOD ADDITIVE FOR THE THIRD TIME SINCE 1978 THE FOOD AND DRUG ADMINISTRATION EXAMINES CLAIMS OF ADVERSE HEALTH REACTIONS TO MONOSODIUM GLUTAMATE THE WIDELYUSED FOOD ENHANCER THE FDA CURRENTLY SAYS MSG IS GENERALLY RECOGNIZED AS A SAFE SUBSTANCE BUT IT HAS HIRED AN INDEPENDENT RESEARCH FIRM TO STUDY NEWER DATA AND COMPLAINTS MSG IS BLAMED FOR ILLS FROM MINOR HEADACHE AND TINGLING KNOWN AS CHINESE RESTAURANT SYNDROME TO MORE SEVERE AILMENTS SUCH AS CHEST PAIN STOMACH CRAMPS AND BREATHING DIFFICULTY THE REVIEW GROUP A RESEARCH UNIT OF THE FEDERATION OF AMERICAN SOCIETIES FOR EXPERIMENTAL BIOLOGY IN MARYLAND THIS WEEK ISSUED A TENTATIVE REPORT EVALUATING CURRENT AVAILABLE DATA ONE OF THE MAJOR HOLES IN THE DATABASE IS THE ACTUAL EXPOSURE TO MSG IN THE US DIET SAYS THE BETHESDA UNIT THE US GLUTAMATE ASSOCIATION SAYS THAT TO DATE THERE HAS BEEN NO CLINICAL RESEARCH WHICH LINKS MSG AND REACTIONS THE FINAL REPORT IS DUE IN 1994 BUT THE FDA WON'T BE BOUND BY ITS CONCLUSIONS BRIEFS THE MISSOURI AUCTION SCHOOL SAYS ENROLLMENTS ROSE 54 SINCE 1988 DUE PARTLY TO LAIDOFF WORKERS SEEKING NEW INCOME PRESIDENTS' WEEK DISCOUNT COUPONS FROM STEAMER'S COFFEE CO CAFE IN MILWAUKEE INCLUDED A HILLARY RODHAM CLINTON DAY BUY ONE DRINK AND GET THE SECOND ONE FREE 9302250002 930225 FRENCH DRUG MAKER WANTS ABORTION PILL AVAILABLE IN US BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON COMMISSIONER DAVID KESSLER OF THE FOOD AND DRUG ADMINISTRATION SAID THAT ROUSSELUCLAF SA THE PRODUCER OF THE SOCALLED ABORTION PILL BELIEVES THE DRUG SHOULD BE MADE AVAILABLE IN THE US BUT DOESN'T WANT TO BE INVOLVED IN THE DISTRIBUTION OR MARKETING OF IT DR KESSLER MET WITH EDOUARD SAKIZ PRESIDENT OF THE FRENCH COMPANY HERE YESTERDAY DR KESSLER SAID THAT DR SAKIZ AGREED THAT THERE NEEDS TO BE A MAJOR CLINICAL TRIAL THAT WOULD BE PRIMARILY DESIGNED TO COLLECT DATA ON HOW THE DRUG RU486 COULD BE SAFELY MADE AVAILABLE THROUGH US MEDICAL FACILITIES CURRENTLY THE PILL IS AVAILABLE ONLY THROUGH SPECIAL CLINICS IN FRANCE BRITAIN AND SWEDEN SUCH A CLINICAL TRIAL COULD BE CONDUCTED THROUGH A RESEARCH CENTER AN ACADEMIC INSTITUTION OR ANOTHER DRUG COMPANY DR KESSLER SAID DR SAKIZ EMPHASIZED THAT IT WAS IMPORTANT TO CONDUCT RESEARCH ON OTHER POTENTIAL USES FOR THE DRUG SUCH AS FIGHTING BREAST CANCER THE FDA HAS SAID IT WOULD WELCOME AN APPLICATION TO MARKET THE DRUG BUT THE COMPANY HASN'T APPLIED INTRODUCTION OF THE DRUG IN THE US WOULD BE CONTROVERSIAL AND COULD LEAD TO PROTESTS AGAINST THE DISTRIBUTOR BY ANTIABORTION GROUPS GROUPS THAT HAVE PUSHED TO MAKE THE DRUG AVAILABLE IN THE US HAVE BEEN URGING THE COMPANY TO LICENSE IT TO ANOTHER CONCERN IF IT WAS UNWILLING TO MARKET THE DRUG ITSELF THE WHITE HOUSE HAS ORDERED THE FDA TO CONSIDER LIFTING THE GOVERNMENT'S BAN ON IMPORTING RU486 FOR PERSONAL USE THAT BAN WAS IMPOSED BY THE BUSH ADMINISTRATION ROUSSELUCLAF IS CONTROLLED BY HOECHST AG OF GERMANY 9302250001 930217 LEISURE & ARTS IN CONCERT THE YOYOLA MR MA'S EXPERIMENT BY HEIDI WALESON TORONTO WHAT DO YOU CALL 50 VIOLISTS BURIED UP TO THEIR NECKS IN SAND NOT ENOUGH SAND WHY IS A VIOLA LIKE A SCUD MISSILE BOTH ARE INACCURATE AND HIGHLY OFFENSIVE EVERYONE IN THE MUSIC WORLD TELLS VIOLA JOKES FLUTISTS TELL THEM CONDUCTORS TELL THEM EVEN VIOLISTS TELL THEM AND WHEN THE CELLIST YOYO MA AND THE CONDUCTOR HUGH WOLFF WALKED ONSTAGE RECENTLY FOR A TORONTO SYMPHONY CONCERT AT WHICH MR MA WOULD PLAY AN OVERSIZE VIOLA THEY HAD TWO NEW VIOLA WISECRACKS ALL READY MR WOLFF EITHER THE DRY CLEANER DID A NUMBER ON HIS CELLO OR HE FOUND A VIOLA IN A NUCLEAR POWER PLANT MR MA I'VE ALWAYS SUFFERED FROM VIOLA ENVY INSTEAD OF HIS DAVIDOFF STRADIVARIUS CELLO MR MA WAS CARRYING A 20INCH VIOLA WITH AN END PIN FOR PLANTING IT CELLOLIKE ON THE FLOOR MR MA HAS BEEN GIVEN TO PRANKS IN HIS TIME BUT THIS WAS NOT ONE OF THEM HE WANTED TO PLAY BARTOK'S VIOLA CONCERTO ONE OF THE COMPOSER'S LAST WORKS THE PIECE EXISTS IN A TRANSCRIPTION FOR CELLO IN WHICH OCTAVES ARE TRANSPOSED TO SUIT THE INSTRUMENT'S LOWER RANGE BUT WHEN MR MA STARTED REHEARSING IT ON THE CELLO HE DIDN'T LIKE WHAT HE HEARD THE CELLO SOUNDS ALMOST TOO CULTURED HE SAID TO HIMSELF THE PIECE IS ABOUT DEATH IT'S LONELY YOU NEED A SUFFOCATING KIND OF CRY THE VIOLA SOUND IS MORE APPROPRIATE BUT I CAN'T PLAY THE VIOLA THEN MR MA REMEMBERED AN INSTRUMENT HE HAD IN HIS CLOSET AN ALTO VIOLIN BUILT BY THOMAS KNATT TO SPECIFICATIONS ESTABLISHED 30 YEARS AGO BY CARLEEN HUTCHINS A SELFTAUGHT PHYSICIST AND INSTRUMENT BUILDER JUST A FEW WEEKS BEFORE THE TORONTO CONCERT MR MA TRIED THE INSTRUMENT AND THOUGHT HE HAD HIT ON AN INTERESTING SOLUTION TO HIS BARTOK PROBLEM HE TOOK THE INSTRUMENT TO RENE MOREL THE LEADING FIGURE IN THE WORLD IN INSTRUMENT REPAIR AND RESTORATION WHO ADJUSTED IT AND HE ASKED MR WOLFF HIS OLD HARVARD BUDDY IF IT WOULD BE ALL RIGHT TO TRY THE EXPERIMENT IN TORONTO MEMBERS OF THE ORCHESTRA QUICKLY DUBBED THE INSTRUMENT THE YOYOLA INAUGURATING THE LATEST PHASE IN THE HISTORY OF VIOLABASHING THE VIOLA'S BAD RAP IS PARTLY HISTORICAL IT WAS USED FOR CENTURIES EXCLUSIVELY AS A SUPPORTING INSTRUMENT AND NOBODY WROTE ANY SOLO MUSIC FOR IT UNTIL THE 20TH CENTURY IT IS ALSO LARGER HARDER TO PLAY WELL AND NOT AS LOUD AS ITS MORE SOLOISTIC COUSIN THE VIOLIN AND THERE ISN'T MUCH THAT CAN BE DONE ABOUT IT IN THEORY THE EXPERTS HAVE ALWAYS SAID THAT THE VIOLA CAN'T BE BUILT LARGE ENOUGH TO PROJECT AS WELL AS A VIOLIN AND STILL BE HELD UNDER THE CHIN ENTER MS HUTCHINS AFTER CONDUCTING RESEARCH ON THE PHYSICS OF OLD INSTRUMENTS SHE DEVELOPED A 20INCHLONG VIOLA SUPPOSEDLY IDEAL FOR THE NATURAL VIBRATION OF THE VIOLA'S OPEN STRINGS MAKING FOR GREATER PROJECTION BUT AS IT IS FAR TOO LARGE FOR MOST VIOLISTS TO HOLD IN THE NORMAL POSITION AN AVERAGE STANDARD VIOLA IS 16 1/2 INCHES LONG NOT 20 IT CAN ALSO BE PLAYED CELLOSTYLE ADDING A NEW OBSTACLE FOR THE ALREADY BELEAGUERED VIOLIST BUT PERFECT FOR A CELLIST LOOKING FOR NEW HORIZONS COULD THIS BE THE ULTIMATE VIOLA JOKE IN ORDER TO PLAY THE VIOLA PROPERLY YOU HAVE TO BE A CELLIST SOLO VIOLISTS WHO TEND TO BE A BIT TOUCHY AND DEFENSIVE ABOUT THEIR INSTRUMENT AND ITS REPUTATION MIGHT WELL BE UPSET ABOUT THE YOYOLA BUT THE VIOLIST PAUL NEUBAUER WHO HAS EDITED A NEW VERSION OF THE BARTOK CONCERTO WAS GRACIOUS WE STEAL OTHER PEOPLE'S REPERTOIRE QUITE OFTEN SO I CAN'T SAY ANYTHING ABOUT THAT I'VE NEVER HEARD A VIOLA PLAYED IN CELLO POSITION BUT WITH SOMEONE WHO PLAYS LIKE YOYO I ASSUME IT WILL SOUND GREAT BUT EVEN FOR A MUSICIAN OF MR MA'S UNDISPUTED HIGH STANDING TAKING ON SOMEONE ELSE'S INSTRUMENT IS NO LIGHT MATTER THE VIOLA AND CELLO ARE TUNED TO THE SAME NOTES AN OCTAVE APART BUT THE VIOLA FINGERBOARD IS SHORTER SO MR MA HAD TO ADAPT IN ONE CASE HE HAD THE ADVANTAGE OF VIOLISTS IN THE THIRD MOVEMENT A FURIOUS FOLK DANCE HE COULD FINGER FAST HIGH NOTES WITH HIS THUMB TRY THAT WITH THE INSTRUMENT HELD UNDER THE CHIN AND YOU'LL DROP IT HE ALSO HAD TO READ THE PIECE IN ALTO CLEF CELLO PARTS ARE WRITTEN IN BASS TREBLE AND TENOR CLEFS SO THE PRINTED NOTES LOOKED ALL WRONG TO HIM AT FIRST BUT MR MA SAID THAT THE HARDEST PART OF THE EXERCISE WAS FINDING THE RIGHT POSITION IF I CRADLE IT BETWEEN MY KNEES THE SOUND IS LESS THAN WHEN I PLAY IT HELD MORE FORWARD OF COURSE I GET NERVOUS AND WHEN I DO HE CLUTCHED THE INSTRUMENT TOWARD HIS CHEST SO I HAVE TO FIND A DIFFERENT WAY SO THAT THE INSTRUMENT CAN SOUND ITS BEST IT WASN'T EASY STEVEN DANN PRINCIPAL VIOLIST OF THE TORONTO SYMPHONY WHO HELPED MR MA WITH THE CONCERTO SAID HE HAD TO COME TO TERMS WITH HOW THE INSTRUMENT SPEAKS THE VIOLA NEEDS LOTS OF BOW SPACE AND ROOM HE HAD TO STOP PLAYING IT LIKE A CELLO TO STOP PUSHING SO HARD EVEN AFTER ALL THAT AS IT TURNED OUT THIS ALTO VIOLIN LEFT SOMETHING TO BE DESIRED PROMISED PROJECTION NOTWITHSTANDING IT FADED INTO NOTHINGNESS WHEN THE FULL ORCHESTRA PLAYED ALONG AND THE PYROTECHNICS OF BARTOK'S THIRD MOVEMENT DIDN'T HAVE THEIR FULL PUNCH THOUGH THE HYPERVIOLA DID EMIT A NICE MIDDLEEUROPEAN WAIL IN THE LOW REGISTER MR MA WAS REALLY IN HIS ELEMENT ONLY IN THE ELEGIAC SECOND MOVEMENT WHICH WAS BIG WARM AND FREE AN ARIA OF RESIGNED DESPAIR IT WAS LOVELY AND NOT SURPRISINGLY THE MOST CELLOLIKE BIT OF THE PERFORMANCE BUT THE INSTRUMENT DIDN'T SOUND PARTICULARLY LIKE A VIOLA AS MR MA HAD HOPED ON THE OTHER HAND IT DIDN'T REALLY SOUND LIKE A CELLO EITHER A POINT THAT WAS DRIVEN HOME WHEN MR MA RELAXED INTO HIS ENCORE ON CELLO TCHAIKOVSKY'S ANDANTE CANTABILE HAD THE BIGGEST FATTEST SWEETEST CELLO SOUND ANYBODY COULD WANT MR MA SEEMS HOWEVER ON THE EVIDENCE OF THIS CONCERT TO WANT MORE HE IS OBVIOUSLY FINDING THE SOLO CELLO REPERTOIRE FRUSTRATINGLY LIMITED AND TRYING OUT NEW INSTRUMENTS INCLUDING THE BAROQUE CELLO SOMETIME IN THE NEAR FUTURE IS ONE WAY HE KEEPS HIMSELF SANE TO TOP OFF THE EVENING IN TORONTO WHEN MR WOLFF CAME ONSTAGE TO CONDUCT A VIBRANT RENDITION OF BIZET'S SYMPHONY NO 1 MR MA WAS ALREADY THERE WRAPPED AROUND A SPECIALLY TUNED BASS IN THE SECOND ROW OF THE BASS SECTION THAT REALLY WAS A JOKE IN RESPONSE TO A DARE FROM A BASS PLAYER ONE AMUSED AUDIENCE MEMBER QUIPPED NEXT TIME I GUESS HE'LL BE WITH THE CLARINETS PERHAPS BUT MAYBE MR MA HAS HIS EYE ON THAT LAST REFUGE OF BORED INSTRUMENTALISTS THE PODIUM MS WALESON IS A FREELANCE MUSIC WRITER IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR MIKING THE VIOLA AND OTHER EYEPOPPERS WSJ FEB 25 1993 9302170041 9302250051 930126 LETTERS TO THE EDITOR POOR PEOPLE NEED THOSE LAWYERS IN HIS DEC 30 RULE OF LAW COLUMN NOT ALL PRO BONO WORK HELPS THE POOR JONATHAN R MACEY PRESENTS VARIOUS ECONOMIC ARGUMENTS TO OPPOSE MANDATORY PRO BONO WORK HIS ARTICLE SERVES TO DEMONSTRATE THE PERNICIOUS EFFECT SUCH REASONING HAS ON OUR LEGAL SYSTEM MR MACEY MISTAKENLY SUGGESTS THAT PRO BONO REPRESENTATION FOR THE POOR WILL RESULT IN MORE MARGINAL LAWSUITS BROUGHT AGAINST LANDLORDS BECAUSE LAWYERS WOULD NEED SOMETHING TO DO TO FULFILL THEIR MANDATORY PRO BONO OBLIGATIONS HOW ABSURD POOR PEOPLE NEED HELP DEFENDING THEMSELVES AGAINST EVICTION SUITS FILED BY AVARICIOUS LANDLORDS NOT IN BRINGING ADDITIONAL SUITS PERHAPS THE KNOWLEDGE THAT POOR TENANTS WILL HAVE LEGAL REPRESENTATION WILL IN FACT DIMINISH THE NUMBER OF LAWSUITS FILED BY LANDLORDS AFTER LANDLORDS REALIZE THEY CANNOT RAILROAD POOR TENANTS THROUGH THE COURTS THE WAY THEY DO NOW IT SEEMS TO ME THEY WOULD THINK TWICE BEFORE FILING THEIR FRIVOLOUS LAWSUITS MR MACEY ARGUES THAT THE INCREASED LEGAL REPRESENTATION RESULTING FROM MANDATORY PRO BONO WORK EVENTUALLY WILL DIMINISH LOWINCOME HOUSING STOCK DUE TO INCREASED COSTS TO LANDLORDS THE SAME SIMPLISTIC REASONING COULD BE EMPLOYED TO ARGUE AGAINST SAY ENFORCEMENT OF THE FIRST AMENDMENT ALL THIS ENDLESS WRANGLING OVER WHAT CAN AND CANNOT BE PUBLISHED IS EXPENSIVE THE COMPANY THAT PUBLISHES THE NEWSPAPER YOU NOW HOLD PROBABLY RETAINS A PHALANX OF STAFF ATTORNEYS TO GUIDE IT THROUGH THE COMPLEXITIES OF FIRST AMENDMENT LAW SO WHY NOT JUST STOP ENFORCING THE FIRST AMENDMENT THINK OF HOW MUCH CHEAPER NEWSPAPERS MIGHT BE I TOO OPPOSE MANDATORY PRO BONO WORK BUT PRIMARILY BECAUSE MOST LAWYERS ARE ILLEQUIPPED TO DEAL WITH THE PROBLEMS OF THE POOR I FEAR THAT ATTORNEYS LIKE MR MACEY WHO CONSIDER JUSTICE OPTIONAL WHEN IT CONFLICTS WITH ECONOMIC EXPEDIENCY ARE NOT THE SORT OF PEOPLE SOCIETY SHOULD OBLIGATE TO COUNSEL AND DEFEND ITS NEEDIEST MEMBERS MR MACEY SHOULD GET HIS HANDS DIRTY WITH A PRO BONO DIVORCE OR TWO BEFORE HE CASTS ASPERSIONS ON THE MANY THOUSANDS OF LAWYERS WHO VOLUNTEER THEIR TIME ON BEHALF OF LESS FORTUNATE MEMBERS OF SOCIETY CONTRARY TO HIS STATEMENT IT SIMPLY DOES NOT MAKE SENSE TO HAVE LAWYERS AS COMBATANTS WHEN THERE IS LITTLE OR NO ESTATE TO FIGHT OVER MY EXPERIENCE AS AN ATTORNEY REPRESENTING CLIENTS IN PRO BONO DIVORCE CASES HAS BEEN AS FOLLOWS 1 THE PRIMARY REASON WHY A PRO BONO CLIENT ALMOST ALWAYS A WOMAN WITHOUT ANY FINANCIAL RESOURCES SEEKS PRO BONO LEGAL SERVICES IS THAT SHE HAS CHILDREN FOR WHOM CHILD SUPPORT HAS NOT BEEN PAID BY A HUSBAND WHO HAS SEPARATED FROM HER 2 NO OPPOSING LAWYER IS RETAINED BY THE DEADBEAT DAD THUS THE DEMAND FOR LAWYERS IS NOT INCREASED 3 ALTHOUGH FINANCIAL ASSETS ARE NOT AVAILABLE A GARNISHMENT CAN BE PLACED UPON THE FUTURE WAGES OF THE DEADBEAT DAD 4 BY OBTAINING AND ENFORCING STATUTORY CHILD SUPPORT THE WOMAN IS ABLE TO STAY EMPLOYED STAY OFF WELFARE AND PROVIDE FOR HER CHILDREN 5 WITHOUT A LAWYER INVOLVED A DIVORCING WOMAN OF LITTLE MEANS STANDS LITTLE CHANCE OF COLLECTING CHILD SUPPORT FROM AN UNWILLING OBLIGOR MANY POOR PEOPLE NEED LEGAL ASSISTANCE JUST TO BE ABLE TO OBTAIN THE VERY BASICS INCLUDING FOOD SHELTER AND MEDICINE MANY LANDLORDS FILE SUIT FOR POSSESSION AGAINST IMPOVERISHED TENANTS WHO ARE UNABLE TO REPRESENT THEMSELVES AND WHO DO NOT KNOW THAT THEIR RIGHTS TO HABITABLE DWELLINGS MAY HAVE BEEN VIOLATED ENTITLING THEM TO RENT ABATEMENT FEW MEMBERS OF THE PRIVATE BAR ARE WILLING TO LEARN THE RUDIMENTS OF POVERTY LAW INCLUDING PUBLIC BENEFIT LAW AND RESIDENTIAL LANDLORD AND TENANT LAW IN ORDER TO HELP THE TRULY POOR ON A PRO BONO BASIS THOSE ATTORNEYS WHO DO FIND THE TIME FIND IT A REWARDING WAY TO PRACTICE LEGAL AID ATTORNEYS DEAL WITH THESE PROBLEMS DAY IN AND DAY OUT BUT MANY CLIENTS WITH PRESSING PROBLEMS ARE TURNED AWAY BECAUSE THERE ARE TOO FEW SUCH ATTORNEYS IN MANY IMPOVERISHED AREAS IT IS PAINFUL TO SAY NO WHEN ONE IS FULLY AWARE THAT THE CLIENT SIMPLY WILL NOT GET THE HELP HE NEEDS SO BADLY I KNOW THIS BECAUSE I'VE BEEN THERE I HAVE PRACTICED IN A LEGAL AID OFFICE FOR ABOUT EIGHT YEARS DON'T TELL ME THAT INCREASED ACCESS TO AND CONSUMPTION OF LEGAL SERVICES WILL HURT THE POOR I KNOW BETTER MR MACEY DRAWS AN INTERESTING CHOICE BETWEEN LEGAL SERVICES AND OTHER COMMODITIES WHEN HE TELLS US THAT MOST PEOPLE MIDDLE CLASS OR POOR WOULD TAKE 2500 IN CASH RATHER THAN 20 BILLABLE HOURS OF LEGAL SERVICES PROVIDED BY A PARTNER AT A WALL STREET LAW FIRM THIS SIMPLY ISN'T THE KIND OF CHOICE POOR PEOPLE MAKE POOR PEOPLE GO TO A LAWYER JUST LIKE THEY GO TO A DENTIST WHEN THE PAIN IS TOO SIGNIFICANT TO IGNORE THEY CERTAINLY DON'T PASS UP NECESSITIES FOR NONPRESSING LEGAL ASSISTANCE THIS ASSESSMENT OF THE BENEFITS OF PRO BONO LEGAL SERVICE OVERLOOKS COMPLETELY THE BENEFIT TO LAWYERS FROM ASSOCIATING WITH THOSE FAR LESS FORTUNATE THAN THEMSELVES ARE THERE NO LIFE LESSONS TO BE LEARNED FROM OBSERVING THE UNBELIEVABLE HARDSHIPS THAT SOME OF OUR CITIZENS MUST ENDURE ON A REGULAR BASIS ONE WOULD HOPE THAT PRO BONO LEGAL SERVICE WOULD BENEFIT THE LAWYER AS WELL AS THE CLIENT IF SUCH A BENEFIT OCCURS IT CAN ONLY CONTRIBUTE TO A STRONGER MORE EFFECTIVE BAR SEE RELATED LETTER LETTERS TO THE EDITOR PROPERTY OWNERS PLAY ON A TILTED FIELD WSJ FEB 25 1993 9301260127 9302240173 930224 METROGOLDWYNMAYER'S NOTES CULVER CITY CALIF METROGOLDWYNMAYER INC SAID IT WILL REDEEM ALL OF ITS 79 MILLION OF 12 5/8 SENIOR SUBORDINATED NOTES OUTSTANDING DUE DEC 15 1993 MGM SAID IT WILL PAY THE FACE AMOUNT PLUS INTEREST ACCRUED TO THE REDEMPTION DATE SET FOR MARCH 15 THE ENTERTAINMENT CONCERN OWNED BY THE FRENCH BANK CREDIT LYONNAIS SA SAID THE REDEMPTION WILL REDUCE INTEREST EXPENSE 9302240172 930224 SCOTTS'S STOCK REPURCHASE MARYSVILLE OHIO SCOTTS CO SAID IT PAID 404 MILLION OR ABOUT 1675 A SHARE TO REPURCHASE ALL 24 MILLION OF ITS COMMON SHARES HELD BY A FUND MANAGED BY CLAYTON DUBILIER & RICE A PRIVATE NEW YORK INVESTMENT FIRM THE LAWNCARE PRODUCTS CONCERN PLANS TO BUY BACK AN ADDITIONAL 500000 SHARES OVER THE NEXT 12 MONTHS SUBJECT TO APPROVAL BY ITS BOARD SCOTTS SAID ITS BUYBACK OF THE CLAYTON DUBILIER & RICE STAKE COMPLETES ITS TRANSITION TO A PUBLICLY HELD COMPANY CLAYTON DUBILIER & RICE WHICH STAKES AND ADVISES PRIVATE COMPANIES SAID SCOTTS HAS EVOLVED TO THE NEXT STAGE OF GROWTH THE SHARES REPRESENT ABOUT 115 OF SCOTTS'S COMMON SHARES OUTSTANDING 9302240171 930224 ECONOMY CONFIDENCE INDEX OF CONSUMERS FELL DURING FEBRUARY BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN INDEX OF CONSUMER CONFIDENCE DROPPED THAN 10 IN FEBRUARY AFTER PEAKING AT YEAR END THE CONFERENCE BOARD'S MEASURE OF CONSUMER CONFIDENCE SHOWED A DECLINE TO 685 AFTER SLIPPING TO 767 LAST MONTH HOWEVER THE SURVEY OF 5000 HOUSEHOLDS WAS TAKEN JUST BEFORE PRESIDENT CLINTON'S TELEVISED SPEECH TO CONGRESS OUTLINING HIS ECONOMIC PROGRAM FABIAN LINDEN THE EXECUTIVE DIRECTOR OF THE NEW YORKBASED ECONOMIC RESEARCH ORGANIZATION'S CONSUMER RESEARCH CENTER SAID THE LARGE DROP MIGHT HAVE OCCURRED BECAUSE OF UNCERTAINTY OVER THE PRESIDENT'S BUDGET AND DEEP STAFF CUTS BY LARGE CORPORATIONS WE DON'T WANT TO MAKE TOO MUCH OUT OF THE DROP BECAUSE OF THE TWO EXTERNAL FACTORS HE SAID OF THE SURVEY WHICH WAS TAKEN IN THE FIRST TWO WEEKS OF FEBRUARY HE ADDED THAT NEXT MONTH'S SURVEY WOULD OFFER A BETTER VIEW OF THE ECONOMY WE DON'T WANT TO MAKE TOO MUCH FUSS OVER THIS MR LINDEN SAID I SUSPECT THAT IT WENT BACK UP AGAIN AFTER THE SPEECH SAID ROBERT DEDERICK CHIEF ECONOMIST FOR NORTHERN TRUST CO IN CHICAGO MR DEDERICK ALSO SUGGESTED THAT THE DECLINE REPRESENTED A RETURN TO NORMAL FOLLOWING THE EUPHORIA CREATED BY THE ARRIVAL OF A NEW ADMINISTRATION IN WASHINGTON THE UNIVERSITY OF MICHIGAN'S EARLY REPORT ON CONSUMER CONFIDENCE IN FEBRUARY SHOWED IT TO BE VIRTUALLY FLAT SANDRA SHABER AN ECONOMIST FOR THE WEFA GROUP SAID THE CONFERENCE BOARD'S INDEX IS MORE SENSITIVE TO UNEMPLOYMENT AND THE SLUGGISH JOB MARKET FORCED IT DOWN ROBERT ORTNER A FORMER UNDERSECRETARY OF COMMERCE CAUTIONED THAT THE SURVEY COULD BE AN ABERRATION AND NOT INDICATIVE OF THE OVERALL FEELING ABOUT THE ECONOMY I'M CAUTIOUS ABOUT READING TOO MUCH INTO THIS MR ORTNER ADDED THAT THE INDEX IS NOT A STRONG INDICATOR ON ITS OWN THE INDEX ALSO MEASURED A 144POINT DROP IN CONSUMER EXPECTATIONS THE BOARD'S RATING OF THE CURRENT SITUATION REMAINED FLAT AND BUYING PLANS WERE MARGINALLY STRONGER 9302240170 930224 INTERNATIONAL RUSSIAN RUBLE HITS A LOW AGAINST THE US DOLLAR MOSCOW THE RUSSIAN RUBLE BESET BY INFLATION AND POLITICAL UNCERTAINTY TUMBLED TO A NEW LOW AGAINST THE DOLLAR THE RUBLE SAGGED TO 576 TO THE DOLLAR IN TWICEWEEKLY TRADING YESTERDAY ON THE MOSCOW INTERBANK CURRENCY EXCHANGE FROM 559 LAST THURSDAY THE RUBLE'S PREVIOUS LOW WAS 572 TO THE DOLLAR ON JAN 28 CONTRIBUTING TO THE SLIDE WAS CONFIRMATION THAT INFLATION WAS GATHERING MOMENTUM RUSSIAN RETAIL PRICES JUMPED BY A 27 MONTHLY RATE IN JANUARY WHILE PRODUCER PRICES SHOT UP 32 IN A MONTH THE INTERFAX NEWS AGENCY REPORTED IN THE SAME MONTH RUSSIA'S INDUSTRIAL OUTPUT FELL 19 FROM JANUARY 1992 RUSSIAN EXPORTS TO MARKET ECONOMIES FELL 30 IN 1991 AND BY 17 IN 1992 WHEN MOSCOW POSTED A HARDCURRENCY CURRENT ACCOUNT DEFICIT OF 69 BILLION AFTER A 22 BILLION SURPLUS IN 1991 WITH HARD CURRENCY BECOMING SCARCE COMPANIES WERE BIDDING ABOVE OFFICIAL RATES ON THE BLACK MARKET WHERE A DOLLAR NOW FETCHES 665 RUBLES ACCORDING TO GERMAN BANKERS ECONOMISTS SAY THE WIDENING GAP BETWEEN OFFICIAL AND BLACK MARKET RATES REFLECTED FEARS THAT INFLATION WILL WORSEN SOME ANALYSTS INTERPRETED THE LOWER RATES ON THE OFFICIAL EXCHANGE AS SUGGESTING THAT THE CENTRAL BANK WAS SUPPORTING THE RUBLE AT THE AUCTIONS FOR POLITICAL PURPOSES THE SUSPICION COULDN'T BE CONFIRMED 9302240169 930224 FINANCING BUSINESS WHEELINGPITTSBURGH CORP WHEELINGPITTSBURGH CORP NEW YORK FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 10 MILLION COMMON SHARES OF THE TOTAL SEVEN MILLION WOULD BE OFFERED BY THE COMPANY THE REMAINING THREE MILLION WOULD BE OFFERED BY THE COMPANY'S CHAIRMAN RONALD LABOW THROUGH TWO PARTNERSHIPS SOLELY CONTROLLED BY HIM THE FILING SAID MR LABOW WILL CONTINUE TO HOLD ABOUT 217 OF THE COMPANY'S STOCK AFTER THE OFFERING ACCORDING TO THE FILING PROCEEDS FROM THE SEVEN MILLION SHARES TO BE OFFERED BY THE COMPANY WILL BE USED TO PAY DOWN DEBT ON A REVOLVING CREDIT FACILITY AFTER THE OFFERING THE STEELMAKER WILL HAVE 2608 MILLION SHARES OUTSTANDING THERE IS A 15 MILLIONSHARE OVERALLOTMENT ALLOWANCE SALOMON BROTHERS INC AND MERRILL LYNCH & CO WILL MANAGE THE OFFERING 9302240168 930224 INTERNATIONAL BERTELSMANN EARNINGS DATA GUETERSLOH GERMANY BERTELSMANN AG A CLOSELY HELD GERMAN MEDIA COMPANY RELEASED FINAL EARNINGS DATA FOR THE YEAR ENDED JUNE 30 THAT SHOW A SMALL DOWNWARD REVISION FROM PRELIMINARY FIGURES GROUP NET INCOME ROSE 53 TO 5688 MILLION MARKS 3504 MILLION IT SAID IT PREVIOUSLY HAD REPORTED A 56 INCREASE TO 570 MILLION MARKS GROUP SALES ROSE 3 TO 1596 BILLION MARKS IT SAID 9302240167 930224 INTERNATIONAL TDK REPORTS DROP IN EARNINGS TOKYO TDK CORP A JAPANESE MAKER OF MAGNETIC AUDIO AND VIDEO TAPES REPORTED THAT CONSOLIDATED PRETAX PROFIT FELL 32 TO 949 BILLION YEN 816 MILLION IN THE FISCAL THIRD QUARTER ENDED DEC 31 FROM A YEAR EARLIER NET INCOME FELL 22 TO 506 BILLION YEN AND SALES EDGED DOWN 28 TO 13652 BILLION YEN TDK DIDN'T RELEASE A FORECAST FOR FULLYEAR CONSOLIDATED RESULTS SLUGGISH DEMAND FOR ELECTRONIC MATERIALS AND COMPONENTS CARRIED OVER FROM THE FIRST HALF OF THE YEAR INTO THE THIRD QUARTER TDK SAID IT NONETHELESS CITED BRISK SALES OF SEMICONDUCTOR INTEGRATED CIRCUITS AND MAGNETIC HEADS 9302240166 930224 NATIONAL CITY SETS BUYBACK CLEVELAND NATIONAL CITY CORP SAID IT WILL BUY BACK AS MANY AS THREE MILLION OF ITS COMMON SHARES AND AS MANY AS FOUR MILLION DEPOSITARY SHARES OF ITS 8 CUMULATIVE CONVERTIBLE PREFERRED THE BUYBACK IS LIMITED TO 200 MILLION ANY PREFERRED SHARES PURCHASED UNDER THE PLAN WILL BE RETIRED COMMON SHARES WILL BE USED FOR THE COMPANY'S STOCK OPTION PLANS AND FOR GENERAL CORPORATE PURPOSES NATIONAL CITY IS A DIVERSIFIED FINANCIAL SERVICES COMPANY AS OF DEC 31 IT HAD 79083590 COMMON SHARES AND 800000 OF THE 8 PREFERRED SHARES OUTSTANDING 9302240165 930224 MEI DIVERSIFIED FILES FOR PROTECTION UNDER CHAPTER 11 BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS MEI DIVERSIFIED INC FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION AFTER FAILING TO GET AN EXPECTED CASH INFUSION FROM A FUND LED BY INVESTOR IRWIN JACOBS THE COMPANY SAID MR JACOBS TOLD IT THAT IMR FUND LP HAD DECIDED NOT TO PROCEED WITH THE OFFER AFTER CONDUCTING A DUE DILIGENCE REVIEW OF MEI'S SITUATION IN NOVEMBER THE FUND PROPOSED TO SWAP 267 MILLION IN CASH AND A COMPANY KNOWN AS BROWNMINNEAPOLIS TANK CO WHICH IT VALUED AT 40 MILLION FOR 133 MILLION NEWLY ISSUED MEI SHARES THE NEW SHARES WOULD HAVE REPRESENTED A 42 STAKE MR JACOBS WHO ACCORDING TO THE LATEST AVAILABLE FILINGS OWNS ABOUT 13 MILLION MEI SHARES RESIGNED AS AN MEI DIRECTOR SHORTLY AFTER HIS FUND MADE THE PROPOSAL MEI'S CHAIRMAN IS CARL POHLAD A FREQUENT COINVESTOR WITH MR JACOBS THE COMPANY HAS IN RECENT YEARS PROFITED HUGELY FROM THE SALE OF A PEPSI BOTTLING OPERATION AND SUBSEQUENTLY INVESTED IN SNACK FOODS AND MOST RECENTLY HAS FOCUSED ON OWNERSHIP OF BEAUTY SALONS AND MEDICAL PRODUCTS THE IMR FUND REMAINS INTERESTED IN PURSUING AN ALTERNATIVE TRANSACTION WHEREBY IMR WOULD PURCHASE A CONTROLLING INTEREST IN THE ENTERPRISES OF MEI AND REMAINS AVAILABLE TO CONTINUE DISCUSSIONS WITH MEI MANAGEMENT TO REVIEW ALTERNATIVE STRUCTURES MEI QUOTED MR JACOBS AS SAYING AN OFFICIAL SAID THE COMPANY HAD NO COMMENT ON THAT INTEREST THE COMPANY SAID THE CHAPTER 11 BANKRUPTCY FILINGS WILL PERMIT THE PROMPT IMPLEMENTATION OF DEBTORINPOSSESSION FINANCING THAT WILL PERMIT MEI TO CONTINUE THE TURNAROUND OF ITS BEAUTY SALON BUSINESS AND TO REALIZE ITS CONSIDERABLE POTENTIAL MEI'S CANADIAN OPERATIONS WHICH THE COMPANY CHARACTERIZED AS PROFITABLE AREN'T PART OF THE CHAPTER 11 FILINGS MEI AND ITS PRINCIPAL BEAUTYSALON OPERATING SUBSIDIARIES EACH FILED SEPARATE CHAPTER 11 PETITIONS WITH THE FEDERAL BANKRUPTCY COURT IN DELAWARE THE COMPANY BLAMED UNPROFITABLE OPERATING RESULTS FROM BEAUTY SALONS IT PURCHASED IN 1990 AND NOTED THAT IT IS AGGRESSIVELY PURSUING LITIGATION AIMED AT RECOVERING WHAT IT CLAIMS ARE DAMAGES FROM THE SELLERS FOR THE FIRST NINE MONTHS OF 1992 MEI REPORTED A LOSS OF 181 MILLION OR 97 CENTS A SHARE ON REVENUE OF 2535 MILLION 9302240164 930224 COX SOUTHWESTERN BELL DISCUSS VENTURE TO BUY BUILD CABLE SYSTEMS IN UK BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COX CABLE COMMUNICATIONS IS IN TALKS WITH SOUTHWESTERN BELL TO INVEST MORE THAN 300 MILLION TO JOIN THE REGIONAL TELEPHONE COMPANY IN A VENTURE THAT WOULD BUY AND BUILD CABLE SYSTEMS IN BRITAIN THE DISCUSSIONS FOLLOW SOUTHWESTERN BELL'S 650 MILLION AGREEMENT THIS MONTH TO BECOME THE FIRST REGIONAL PHONE COMPANY TO BUY US CABLE SYSTEMS THAT PLAN MAY HERALD A NEW ERA OF PITCHED COMPETITION OR COOPERATION BETWEEN THE TWO RIVAL INDUSTRIES PEOPLE FAMILIAR WITH NEGOTIATIONS SAID COX THE NATION'S FIFTH LARGEST CABLE COMPANY WITH SYSTEMS REACHING 17 MILLION HOMES MAY INVEST 300 MILLION OR MORE FOR A STAKE IN THE UNITED KINGDOM VENTURE THE TWO COMPANIES WOULD THEN JOINTLY BUILD MORE SYSTEMS IN THE NASCENT UK MARKET EXECUTIVES AT SOUTHWESTERN BELL AND COX CABLE A UNIT OF COX ENTERPRISES INC DECLINED TO COMMENT BUT INDUSTRY EXECUTIVES SAID THE PROPOSED VENTURE WOULD CAP MONTHS OF DISCUSSIONS THAT COX HAS HAD WITH SEVERAL REGIONAL BELL TELEPHONE COMPANIES ABOUT POSSIBLE ACQUISITIONS OR JOINT VENTURES ULTIMATELY SOUTHWESTERN BELL SEEMS TO BE THE PHONE COMPANY THAT BEST FITS CLOSELY HELD COX'S CORPORATE CULTURE SAID ONE PERSON FAMILIAR WITH THE PLAN FOR ATLANTABASED COX A COMPLETED DEAL MAY REPRESENT ITS FIRST SHOT AT RUNNING A CABLE SYSTEM IN THE UK WHERE COMPANIES CABLE OR TELEPHONE ARE ALLOWED TO OFFER BOTH PHONE SERVICE AND CABLE SERVICE ON THE SAME SET OF WIRES SOME INDUSTRY EXECUTIVES SAY A BRITISH VENTURE BRINGING TOGETHER SOUTHWESTERN BELL AND COX CABLE COULD PAVE THE WAY FOR AN ALLIANCE BETWEEN THE TWO COMPANIES HERE IN THE US ANALYSTS SAY THE UK'S UNRESTRICTED REGULATORY CLIMATE OFFERS A PEEK INTO THE FUTURE FOR BOTH INDUSTRIES HERE IN THE US INDEED REP ED MARKEY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE AND A VOCIFEROUS CABLE CRITIC RECENTLY FLOATED THE IDEA OF LIFTING THE CURRENT US BAN BLOCKING TELEPHONE COMPANIES FROM OWNING CABLE SYSTEMS IN THEIR OWN SERVICE REGIONS SOUTHWESTERN'S ANNOUNCEMENT EARLIER THIS MONTH INVOLVES TWO CABLE SYSTEMS THAT AREN'T IN ITS SERVICE AREA THEY SERVICE 225000 SUBSCRIBERS AND ARE TO BE ACQUIRED FROM CABLE COMPANY HAUSER COMMUNICATIONS INC A SLEW OF US CABLE AND PHONE COMPANIES HAS BEEN RACING INTO THE UK TO WIRE UP THAT MARKET FACED WITH SLUGGISH SUBSCRIBER GROWTH AND NEW REGULATIONS ON CABLE RATES IN THE US COMPANIES HAVE FLOCKED OVERSEAS BANKROLLING ABOUT 90 OF CABLE DEVELOPMENT IN THE UK RIGHT NOW THE LARGEST CABLE OPERATOR IN THE UK IS TELEWEST A PARTNERSHIP OF TELECOMMUNICATIONS INC AND U S WEST BUT THE SIZE OF THE INVESTMENT BEING DISCUSSED BY COX CABLE WOULD CLEARLY POSE A MAJOR NEW FORCE WE'RE ON THE CUSP OF THE NEXT PHASE OF GROWTH IN THE UK MARKET AND IT'S REACHING CRITICAL MASS THERE SAID J PATRICK MICHAELS CHAIRMAN OF COMMUNICATIONS EQUITY ASSOCIATES A BROKERAGE FIRM THAT WORKS WITH OVERSEAS CLIENTS WE THINK THIS COULD BE A DRESS REHEARSAL FOR THE US MARKET BY SHARING TECHNOLOGIES SOUTHWESTERN BELL AND COX CABLE ALSO COULD ESTABLISH A FORMIDABLE COMPETITOR TO DIRECT BROADCAST SATELLITE SERVICES DBS CURRENTLY REACHES SOME 35 MILLION HOMES IN THE UK COMPARED WITH CABLE'S RAPIDLY GROWING REACH OF ABOUT 443000 HOMES COX ALSO WOULD GET A CONDUIT TO AIR PROGRAMMING LINKED TO ITS OWNERSHIP STAKE IN UK GOLD A PROGRAMMING SERVICE THAT WAS LAUNCHED LAST NOVEMBER AND AIRS CLASSIC RERUNS FROM BRITISH BROADCASTING SERVICE AND THAMES TELEVISION COX AND SOUTHWESTERN BELL IF THEY SIGN A PACT ALSO MIGHT BENEFIT FROM SHARING COSTS IN A MARKET THAT REQUIRES TREMENDOUS CAPITAL INFUSION UP FRONT COMPARED WITH BUILDING IN THE US MARKET COMPANIES MUST SPEND ALMOST TWICE AS MUCH MONEY TO LAY WIRE IN THE UK BECAUSE ALL CABLE THERE MUST BE BURIED RATHER THAN STRUNG ALONG EXISTING TELEPHONE POLES AS IT IS IN THE US THE HUGE CAPITAL BURDEN IS ONE REASON US AND BRITISH BANKS ALIKE HAVE BEEN RELUCTANT TO PUT UP BIG MONEY FOR CABLE DEVELOPMENT IN THE UK 9302240163 930224 OTC FOCUS NASDAQ INDEX FALLS 013 HEALTH CARE BIOTECHS RECOVER AFTER MONDAY PLUNGE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET ENDED SLIGHTLY LOWER AS HEALTH CARE AND BIOTECHNOLOGY STOCKS REVIVED FOLLOWING MONDAY'S DIVE THE NASDAQ COMPOSITE INDEX DROPPED 08 OR 013 TO 65156 DECLINING ISSUES OUTNUMBERED ADVANCERS 1410 TO 1239 ON TOTAL VOLUME OF 2708 MILLION SHARES DOWN FROM MONDAY'S 2774 MILLION SOME REAL BUYERS FROM BIG INSTITUTIONS PUT UP SOME REAL MONEY SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY IT WAS A FREEFALL ON MONDAY BUT WE SAW SOME BIDS IN THE HEALTH CARE AND BIOTECH AREA YESTERDAY THE INDEX PLUNGED 1119 POINTS MONDAY SEVERAL BIOTECH ISSUES BOUNCED BACK FROM THE MONDAY SELLOFF WHICH WAS SPARKED BY SYNERGEN'S 28 5/8POINT PLUNGE ON WEAKERTHANEXPECTED TEST RESULTS FOR ITS ANTRIL DRUG FOR SEPSIS A BLOOD INFECTION YESTERDAY SYNERGEN ROSE 1 1/4 TO 14 3/4 AMGEN GAINED 2 TO 43 1/2 CHIRON CLIMBED 1 5/8 TO 47 1/4 AND GENZYME ADDED 5/8 TO 29 7/8 BUT INVESTORS SHOULD BE CAREFUL NOT TO BUY ON THE FIRST BOUNCE SAID GEORGE MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS IN LOUISVILLE KY THESE STOCKS WILL PROBABLY GO THROUGH SOME MORE DIGESTION HE SAID THEY WON'T GO STRAIGHT UP AFTER TAKING SUCH A HARD HIT THEY WILL GET SLAMMED AGAIN A FEW HEALTH CARE STOCKS MANAGED TO POST GAINS AFTER BEING BEATEN FOR A COUPLE OF WEEKS US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION ROSE 5/8 TO 40 1/8 COSTAR A LABORATORY PRODUCTS COMPANY JUMPED 2 TO 19 1/2 AND QUANTUM HEALTH RESOURCES A PROVIDER OF LONGTERM THERAPY SUPPORT SERVICES EDGED UP 3/4 TO 19 1/2 TECHNOLOGY STOCKS WERE MIXED INTEL SLID 1 1/4 TO 113 1/4 APPLE COMPUTER DROPPED 7/8 TO 54 1/4 AND MICROSOFT LEAPED 2 3/4 TO 79 1/2 HIGHFLYING CASINO AND RESTAURANT GROWTH STOCKS WERE HIT BY A SEVERE ROUND OF SELLING SOME MONEY MANAGERS MIGHT BE TRYING TO LOCK IN RECENT PROFITS TO COVER HEAVY LOSSES IN OTHER AREAS OF THE MARKET SUCH AS BIOTECH STOCKS TRADERS SAID ALSO INVESTORS MIGHT BE AFRAID THAT THE INCREASED TAXES THE CLINTON ADMINISTRATION HAS PROPOSED WILL TAKE AWAY DISPOSABLE INCOME WHICH WOULD AFFECT CONSUMERS' GAMBLING AND DININGOUT BUDGETS STEAKHOUSE STOCKS STUMBLED LONE STAR STEAKHOUSE & SALOON TUMBLED 2 TO 37 1/4 OUTBACK STEAKHOUSE FELL 1 7/8 TO 23 1/2 AND LONGHORN STEAKS EASED 1/4 TO 18 1/2 BUFFETS INC A RESTAURANT CONCERN DROPPED 2 TO 27 1/4 WE ARE IN A CORRECTION MODE FOR THE HIGH PRICEEARNINGSRATIO GAMBLING AND RESTAURANT STOCKS SAID KURT FEUERMAN A MORGAN STANLEY ANALYST ONE OF THE BESTPERFORMING INITIAL PUBLIC OFFERINGS OF 1992 CASINO MAGIC EASED 1/4 TO 19 GRAND CASINOS LOST 3/4 TO 19 ARGOSY GAMING PLUNGED 3 1/4 TO 15 3/4 THE COMPANY PRICED SIX MILLION SHARES AT 19 LAST THURSDAY THROUGH LEAD UNDERWRITER DONALDSON LUFKIN & JENRETTE BASED IN ALTON ILL ARGOSY OWNS AND OPERATES A GAMBLING RIVER BOAT ON THE MISSISSIPPI IN ILLINOIS ON MONDAY A NEW GAMBLING ISSUE CASINOS USA INC PULLED BACK ITS OFFERING OF 15 MILLION SHARES WALFORD & CO LEADER OF THE UNDERWRITING GROUP BLAMED SUBSTANTIAL CHANGES IN MARKET CONDITIONS THAT MADE THE OFFERING UNDESIRABLE IMPRACTICABLE AND INADVISABLE TRADERS SAID THERE WAS A LACK OF DEMAND FOR THE STOCK WHICH WAS PRICED AT 5 1/2 FEARS OF A PROPOSAL THAT WOULD CAP THE INTEREST RATES CHARGED ON CREDIT CARDS AND CONSUMER LOANS KNOCKED DOWN SEVERAL FINANCIALRELATED STOCKS LATE IN THE AFTERNOON A TREASURY OFFICIAL SAID THE RUMORS WERE UNTRUE ADVANTA A LARGE ISSUER OF CREDIT CARDS TUMBLED 5 3/4 TO 29 VILLAGE FINANCIAL SERVICES SURGED 9 POINTS OR 53 TO 26 IN PORT CHESTER NY VILLAGE FINANCIAL SAID IT AGREED TO BE ACQUIRED BY FIRST FIDELITY BANCORP FOR ABOUT 66 MILLION IN CASH AND STOCK THE COMPANIES SAID THE AGREEMENT CALLS FOR HOLDERS OF VILLAGE FINANCIAL COMMON TO RECEIVE 2835 IN VALUE FOR EACH SHARE THEY SAID 60 OF THE PRICE IS TO BE PAID IN CASH AND 40 IN NEWLY ISSUED FIRST FIDELITY COMMON SHARES NORDSTROM TUMBLED 5 3/4 TO 32 7/8 LATE MONDAY AFTERNOON NORDSTROM CAUTIONED IN A CONFERENCE CALL WITH ANALYSTS THAT EARNINGS ESTIMATES OF 2 A SHARE FOR THE YEAR ENDING IN JANUARY 1994 COULD BE TOO AGGRESSIVE ACCORDING TO JOHN A GOESLING NORDSTROM'S CHIEF FINANCIAL OFFICER THE CONFERENCE CALL FOLLOWED THE RELEASE OF NORDSTROM'S FISCAL 1993 EARNINGS OF 167 A SHARE WHICH THE COMPANY SAID INCLUDES A CHARGE OF FIVE CENTS A SHARE FOR PLAINTIFFS' LEGAL FEES IN CONNECTION WITH THE SETTLEMENT OF A LABOR CLASS ACTION SUIT THE SEATTLE COMPANY EARNED 166 A SHARE A YEAR EARLIER YESTERDAY SEVERAL BROKERAGE FIRMS LOWERED THEIR INVESTMENT RATINGS ON THE STOCK BORLAND INTERNATIONAL SLID 3/4 TO 18 3/4 THE SCOTTS VALLEY CALIF COMPANY SAID IT WON'T SHIP THE FIRST WINDOWS VERSION OF ITS DBASE DATABASE PROGRAM UNTIL LATE THIS YEAR OR EARLY NEXT YEAR THE COMPANY HAD HOPED TO SHIP THE PRODUCT IN JUNE CIRRUS LOGIC TOPPLED 3 3/4 TO 25 3/8 DONALDSON LUFKIN & JENRETTE ANALYST DREW PECK SAID HE LOWERED HIS INVESTMENT RATING TO NEUTRAL FROM ATTRACTIVE MR PECK ALSO SAID IT APPEARS THAT A SLOWDOWN MIGHT OCCUR IN THE DISK DRIVE SECTOR WHICH HE SAID ACCOUNTS FOR ABOUT 40 OF CIRRUS LOGIC'S BUSINESS 9302240162 930224 ARGENTINA'S PACT WITH CREDITORS AT THE CLOSING ARGENTINA WILL ISSUE SECURITIES TO HOLDERS OF 20 BILLION IN EXISTING COMMERCIAL BANK DEBT IN EXCHANGE FOR REDUCED INTEREST RATES OR A SECURITY ISSUED AT A DISCOUNT TO FACE VALUE BANKS ARE RECEIVING BONDS BACKED BY US TREASURY BONDS THE ANNOUNCEMENT WAS MADE BY ARGENTINE MINISTER OF THE ECONOMY DOMINGO CAVALLO AND WILLIAM R RHODES VICE CHAIRMAN AT CITIBANK WHICH HEADS THE BANK ADVISORY COMMITTEE 9302240161 930224 ARCO CHEMICAL EXPANSION NEWTOWN SQUARE PA ARCO CHEMICAL CO SAID IT PLANS TO BUILD A PROPYLENE GLYCOL ETHER PLANT AT AN EXISTING CHEMICAL COMPLEX IN ROTTERDAM THE NETHERLANDS CONSTRUCTION WILL BEGIN THIS YEAR ON THE PLANT WHICH WILL PRODUCE 70000 METRIC TONS A YEAR OF PROPYLENE GLYCOL ETHERS WHICH ARE USED IN PAINTS COATINGS AND ADHESIVES A METRIC TON IS 22046 POUNDS THE PLANT'S STARTUP IS EXPECTED IN MID1995 ARCO CHEMICAL WHICH IS 83OWNED BY ATLANTIC RICHFIELD CO DIDN'T DISCLOSE THE COST OF THE PLANNED FACILITY 9302240160 930224 BUSINESS BRIEF COMPLAINT LEADS TO REVIEW OF BIDS FOR CALIFORNIA JOB SACRAMENTO CALIF CALIFORNIA GOV PETE WILSON APPOINTED A PANEL TO REVIEW THE STATE LOTTERY'S BIDDING PROCESS FOLLOWING A LOTTERY COMPANY'S COMPLAINT THAT THE BIDDING PROCESS WAS BIASED IN FAVOR OF GTECH HOLDINGS CORP SAID A WILSON ADMINISTRATION SPOKESWOMAN GTECH'S STOCK WHICH CLOSED FEB 12 AT 38 ON THE NEW YORK STOCK EXCHANGE DROPPED MORE THAN 20 SINCE THE DISPUTE OVER THE CALIFORNIA LOTTERY CONTRACT BIDDING PROCESS BEGAN LAST WEEK THE COMPANY'S STOCK CLOSED AT 3025 YESTERDAY UP 1125 GTECH WEST GREENWICH RI WAS THE ONLY COMPANY TO SUBMIT A BID BY THURSDAY'S DEADLINE FOR CALIFORNIA'S 250 MILLION LOTTERY CONTRACT LAST WEEK AUTOMATED WAGERING INTERNATIONAL INC A UNIT OF VIDEO LOTTERY TECHNOLOGIES INC WITHDREW FROM COMPETITION FOR THE CONTRACT AND CHARGED THAT THE BIDDING PROCESS FAVORED GTECH CURRENT OPERATOR OF THE STATE'S LOTTERY AUTOMATED WAGERING ASSERTED THAT THE DEADLINE FOR INSTALLING A COMPUTERIZED SYSTEM UNDER THE BIDDING RULES WAS TOO SHORT GIVING AN ADVANTAGE TO GTECH WHOSE SYSTEM IS ALREADY IN PLACE THE GOVERNOR HAS NAMED A REVIEW PANEL TO MAKE SURE THE BIDDING PROCESS WASN'T BIASED IN LIGHT OF THE FACT THAT WE GOT ONLY ONE BID AND BECAUSE OF THE ALLEGATIONS BY AUTOMATED WAGERING SAID KASSY PERRY A WILSON ADMINISTRATION SPOKESWOMAN THIS DOESN'T NEGATIVELY REFLECT ON GTECH SHE ADDED THAT EVALUATION OF GTECH'S BID WILL CONTINUE DURING THE REVIEW OF THE CONTRACT BIDDING PROCESS THE DROP IN GTECH'S STOCK IS A PHENOMENON OF THE MARKET THAT'S NOT SPECIFIC TO GTECH SAID MARY NORTON A GTECH SPOKESWOMAN THERE'S NOTHING OUT THERE TO INDICATE THERE'S A PROBLEM SPECIFIC TO US SHE ADDED THAT GTECH WELCOMES THE REVIEW AND DOESN'T THINK THE BIDDING PROCESS WAS UNFAIR IN CALIFORNIA KEITH BENJAMIN AN ANALYST WITH LADENBURG THALMANN & CO SAID STOCKS OF THE ENTIRE GAMING GROUP HAVE PRETTY MUCH BEEN KNOCKED DOWN OVER THE PAST FEW DAYS POSSIBLY BECAUSE OF NEGATIVE REMARKS ABOUT LOTTERIES REPORTEDLY MADE BY PRESIDENT CLINTON IN A RECENT INTERVIEW HE SAID HOWEVER THAT THERE IS STILL PLENTY OF UPSIDE POTENTIAL FOR COMPUTERIZED GAMING COMPANIES THERE ARE PLENTY OF STATES STILL DESPERATE FOR TAX REVENUES THAT WILL LEGALIZE NEW FORMS OF GAMING MR BENJAMIN ADDED THAT HE EXPECTS GTECH TO RECEIVE THE CALIFORNIA LOTTERY CONTRACT DESPITE THE STATE'S REVIEW OF ITS LOTTERY CONTRACT BIDDING PROCESS I LOOK ON THIS AS A BUYING OPPORTUNITY FOR GTECH STOCK 9302240159 930224 WHO'S NEWS DARMAN TO JOIN CARLYLE AS A MANAGING DIRECTOR WASHINGTON RICHARD DARMAN DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET IN THE BUSH ADMINISTRATION WILL BECOME A MANAGING DIRECTOR OF CARLYLE GROUP A WASHINGTON MERCHANTBANKING FIRM CARLYLE WHOSE CHAIRMAN IS FORMER DEFENSE SECRETARY FRANK CARLUCCI SAID MR DARMAN WILL CONCENTRATE ON INVESTMENT OPPORTUNITIES IN AREAS HEAVILY AFFECTED BY GOVERNMENT POLICY HEALTHCARE AND BIOTECHNOLOGY ENERGY AND ENVIRONMENT TRANSPORTATION AND INSURANCE MR DARMAN 49 YEARS OLD HAS SERVED IN VARIOUS SENIOR POLICY POSITIONS UNDER FOUR PRESIDENTS BEFORE JOINING OMB HE WAS A MANAGING DIRECTOR OF SHEARSON LEHMAN HUTTON INC PRIVATELY HELD CARLYLE CONTROLS COMPANIES WITH MORE THAN 40000 EMPLOYEES AND THAT TOGETHER ARE VALUED AT MORE THAN 2 BILLION 9302240158 930224 BUSINESS BRIEF AMETEK INC FIRSTQUARTER EARNINGS SEEN 20 TO 30 BELOW '92 LEVEL AMETEK INC PAOLI PA SAID IT EXPECTS FIRSTQUARTER EARNINGS TO BE 20 TO 30 BELOW YEAREARLIER LEVELS CITING CONTINUED WEAKNESS IN THE AEROSPACE AND COMMERCIAL AIRLINE INDUSTRIES BUT THE MAKER OF MOTORS PRECISION INSTRUMENTS AND INDUSTRIAL MATERIALS FOR AEROSPACE AND OTHER INDUSTRIES SAID FULLYEAR 1993 EARNINGS AND SALES SHOULD IMPROVE COMPARED WITH 1992 IN THE YEAREARLIER QUARTER AMETEK REPORTED NET OF 113 MILLION OR 26 CENTS A SHARE ON SALES OF 1968 MILLION FOR 1992 IT REPORTED NET OF 444 MILLION OR 101 A SHARE ON 7696 MILLION IN SALES THE SLUGGISHNESS IN THE AEROSPACE MARKET ALONG WITH STARTUP COSTS OF A NEW ELECTRIC MOTOR PLANT AT ROCK CREEK NC COULD ALSO AFFECT ITS SECONDQUARTER EARNINGS AMETEK SAID BECAUSE OF THAT THE COMPANY HAS DECIDED TO TAKE ANOTHER STEP IN RESIZING OUR AEROSPACE DIVISIONS A SPOKESMAN SAID THAT MOVE WOULD INVOLVE SOME LAYOFFS BUT DECLINED TO BE SPECIFIC 9302240157 930224 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9302240156 930224 HOUSE PANEL CLEARS BILL FOR PARTNERSHIP INVESTORS WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE APPROVED A BILL DESIGNED TO GIVE INVESTORS MORE INFORMATION AND OPTIONS IN THE RESTRUCTURING OF LIMITED PARTNERSHIPS THE LEGISLATION WOULD ALLOW INVESTORS IN LIMITED PARTNERSHIPS TO OPT OUT OF RESTRUCTURINGS KNOWN AS ROLLUPS IN WHICH PARTNERSHIPS WITH A FINITE LIFE ARE COMBINED WITH OTHER PARTNERSHIPS INTO INFINITELIFE INVESTMENTS TRADED ON EXCHANGES SUCH ROLLUPS OFTEN GENERATE SUBSTANTIAL FEES FOR GENERAL PARTNERS AND OTHER SPONSORS OF THE RESTRUCTURING WHILE DILUTING INVESTORS' STAKES THE BILL IS EXPECTED TO WIN APPROVAL FROM THE FULL HOUSE BUT IS ALREADY FACING OPPOSITION IN THE SENATE FROM TEXAS REPUBLICAN PHIL GRAMM WHO BLOCKED PASSAGE OF A SIMILAR MEASURE IN THE LAST SESSION OF CONGRESS A SPOKESMAN FOR MR GRAMM SAID THE SENATOR OBJECTS TO THE MEASURE ALLOWING INVESTORS TO VOTE AGAINST A ROLLUP SAYING SUCH POWER WOULD VIOLATE TRADITIONAL CONTRACT LAWS 9302240155 930224 MORGAN STANLEY POSTS STRONG 1992 NET DESPITE DECLINE IN ASIA TRADING GAINS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC POSTED SURPRISINGLY STRONG FOURTHQUARTER PROFIT AND RECORD FISCAL 1992 NET INCOME OF 5105 MILLION DESPITE PLUMMETING TRADING GAINS FROM ASIAN OPERATIONS THE INVESTMENT BANK ALSO BOOSTED ITS QUARTERLY DIVIDEND 125 AND AUTHORIZED THE PURCHASE OF AS MUCH AS 300 MILLION OF ITS STOCK THAT'S ABOUT FIVE MILLION SHARES AT THE CURRENT PRICE THE DIVIDEND WILL BE RAISED TO 27 CENTS A SHARE FROM 24 CENTS PAYABLE MARCH 23 TO STOCK OF RECORD MARCH 5 MORGAN STANLEY SAID IT HAD NET OF 1418 MILLION OR 168 A SHARE FOR ITS FOURTH QUARTER ENDED JAN 31 A 7 JUMP FROM THE 1323 MILLION OR 161 A SHARE IN 1991'S FOURTH QUARTER MORGAN CHANGED TO A FISCAL YEAR ENDING JAN 31 FROM A CALENDAR YEAR IN 1992 MANY ANALYSTS HAD EXPECTED THE FIRM TO EARN BETWEEN 130 AND 150 A SHARE IN THE QUARTER THE SOLID PROFIT BOOSTED MORGAN'S STOCK BY 225 A SHARE IN EARLY NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BY LATE AFTERNOON MORGAN'S STOCK WAS QUOTED AT 56625 UP 375 CENTS THE BETTERTHANANTICIPATED RESULTS LED SOME ANALYSTS TO RAISE THEIR 1993 PROFIT PROJECTIONS JAMES HANBURY A BROKERAGE ANALYST AT WERTHEIM SCHRODER & CO BOOSTED HIS 1993 EARNINGS ESTIMATE FOR MORGAN TO 550 A SHARE FROM 5 STILL MR HANBURY ISN'T URGING INVESTORS TO JUMP IN AND BUY MORGAN STOCK AT THESE LEVELS IT'S AN EXCELLENT COMPANY BUT CLOSE TO FAIRLY PRICED HE SAYS THE RESULTS AT MORGAN THE LAST MAJOR INVESTMENT BANK TO REPORT 1992 EARNINGS CAP THE EIGHTH CONSECUTIVE QUARTER OF STRONG PROFITS FOR WALL STREET BROKERAGE FIRMS' FOURTHQUARTER RESULTS BUOYED BY CONTINUED STRONG ACTIVITY IN NEWSTOCK OFFERINGS LED TO RECORD 1992 PRETAX PROFIT OF NEARLY 7 BILLION FOR THE SECURITIES INDUSTRY MORGAN'S ROBUST FOURTHQUARTER NET CAME EVEN THOUGH THE FIRM REPORTED A 3 DECLINE IN NET REVENUE OR TOTAL REVENUE MINUS INTEREST EXPENSE TO 6956 MILLION THE HIGHER NET WAS DUE IN PART TO THE FIRM'S UNUSUALLY LOW TAX RATE OF 27 IN THE QUARTER COMPARED WITH AN AVERAGE ANNUAL TAX RATE OF ABOUT 38 IN RECENT YEARS THE LOW TAX RATE STEMMED FROM PALTRY TRADING RESULTS IN TOKYO WHERE RESULTS ARE TAXED AT A FAR HIGHER RATE IN RECENT YEARS BY CONTRAST MORGAN HAD MADE A WINDFALL FROM ITS ASIAN OPERATIONS MORGAN'S OVERALL TRADING REVENUE PLUNGED 37 IN ITS FOURTH QUARTER THE FIRM ALSO SLASHED ITS EMPLOYEE COMPENSATION 6 IN THE QUARTER FROM A YEAR EARLIER REPRESENTING JUST 44 OF NET REVENUE MORGAN'S COMPENSATION TYPICALLY RUNS A TAD LESS THAN 50 OF NET REVENUE THEY CLEARLY GUTTED THE BONUS POOL SAYS MR HANBURY MORGAN FOR ITS PART NOTES THAT COMPENSATION FOR THE FISCAL YEAR ENDED JAN31 WAS UP 4 FROM THE PREVIOUS YEAR THE FIRM SAYS IT HAD SOME FLEXIBILITY IN THE FOURTH QUARTER BECAUSE IT ALREADY HAD ACCRUED MUCH OF ITS TOTAL BONUS POOL FOR THE YEAR DURING THE FIRST THREE QUARTERS THE LOW FOURTHQUARTER COMPENSATION NUMBER DOESN'T MEAN A DECISION WAS MADE TO PAY OUR PEOPLE LESS A MORGAN STANLEY SPOKESWOMAN SAYS WE DON'T THINK IT'S A PROBLEM FOR THE YEAR ENDED JAN 31 1993 MORGAN HAD NET OF 5105 MILLION OR 590 A SHARE UP 7 FROM THE 4751 MILLION OR 593 A SHARE IN 1991 NET REVENUE ROSE 6 TO 302 BILLION THE 1992 RESULTS WERE BUTTRESSED BY MERCHANTBANKING GAINS OF 1281 MILLION PRIMARILY FROM PUBLIC STOCK OFFERINGS OF KOHL'S CORP AND COLTEC INDUSTRIES INC AND FROM THE SALE OF MORGAN'S INTEREST IN MS/ESSEX HOLDINGS INC 9302240154 930224 LETTERS TO THE EDITOR RAISE EXPORTS INCREASE PROSPERITY I AM WRITING IN RESPONSE TO YOUR JAN 22 ARTICLE CAN AN OLD STATE DEPARTMENT LEARN NEW TRADE TRICKS FROM CLINTON'S MAN LIKE YOU I TOO WELCOME SECRETARY WARREN CHRISTOPHER'S RECENT COMMENTS REGARDING HIS INTENT TO MAKE THE STATE DEPARTMENT AND ITS OVERSEAS OFFICES MORE ATTENTIVE TO THIS NATION'S COMPETITIVE NEEDS I ALSO AGREE WITH YOUR CONTENTION THAT THE US DOES LESS TO SUPPORT AMERICAN BUSINESS OVERSEAS THAN OUR G7 COUNTERPARTS WHERE I TAKE EXCEPTION WITH YOUR ARTICLE IS YOUR REMARK THAT IN THE CARTER YEARS THE STATE DEPARTMENT SURRENDERED ITS FOREIGN COMMERCIAL SERVICE TO THE COMMERCE DEPARTMENT WHICH HAS NEVER BEEN QUITE SURE HOW TO RUN IT HAD YOU MADE THIS COMMENT AS LITTLE AS FOUR YEARS AGO I WOULD HAVE SECONDED YOUR OPINION AND SUPPORTED THIS CONCLUSION WITH TESTIMONY FROM SEVERAL OF MY SUBCOMMITTEE'S OVERSIGHT HEARINGS ON THE PROBLEMS WITH THIS EXPORT PROMOTION INSTITUTION IT IS NOT A FAIR DESCRIPTION OF TODAY'S COMMERCE DEPARTMENT HOWEVER IN 1989 THE US AND FOREIGN COMMERCIAL SERVICE US&FCS COMPLETED AN INTERNAL STRATEGIC REVIEW OF ITS MISSION ITS PROGRAMS AND ITS ABILITY TO ASSIST EXPORTERS SINCE THEN THAT AGENCY HAS CHANGED DRAMATICALLY FOR EXAMPLE ONE KEY RECOMMENDATION FROM THE STRATEGIC REVIEW WAS THAT COMMERCE SHOULD PLACE MORE EMPHASIS ON INFREQUENT EXPORTERS COMPANIES THAT ARE EXPORTCAPABLE NEWTOEXPORT AND NEWTOMARKET FIRMS THIS NEW FOCUS HAS BROUGHT IMPRESSIVE RESULTS INCLUDING A 26 INCREASE IN ASSISTED EXPORT SALES IN 1992 OVER 1991 LEVELS THE AGENCY'S OTHER FOCUS ON ADVOCACY ON BEHALF OF US FIRMS BIDDING FOR MAJOR OVERSEAS CONTRACTS HAS ALSO RESULTED IN SEVERAL BILLION IN NEW US EXPORT SALES FINALLY THE MORALE AND MANAGEMENT OF ALL FOREIGN AND DOMESTIC OUTREACH OFFICES HAVE BEEN GREATLY IMPROVED RESULTING IN FAR LESS TURNOVER OF COMMERCE'S MOST CAPABLE EMPLOYEES THE MISSING INGREDIENTS FOR THE US&FCS ARE RESOURCES AND CLOUT UNDER THE REAGAN/BUSH ADMINISTRATIONS THE EXPORT PROMOTION PROGRAMS OF THE COMMERCE DEPARTMENT WERE GROSSLY UNDERFUNDED THE AGRICULTURE DEPARTMENT IN CONTRAST WITH ONLY 10 OF THE COUNTRY'S EXPORTS RECEIVES MORE THAN 74 OF US EXPORT PROMOTION DOLLARS OBVIOUSLY A MORE RATIONAL EXPORT PROMOTION POLICY IS IN ORDER IN OCTOBER 1992 PRESIDENT BUSH SIGNED THE EXPORT ENHANCEMENT ACT INTO LAW THAT BILL INCLUDED LANGUAGE PLACING IN STATUTE THE TRADE PROMOTION COORDINATING COMMITTEE TPCC TO PROVIDE A UNIFYING FRAMEWORK TO COORDINATE THE EXPORT PROMOTION AND EXPORT FINANCING ACTIVITIES OF THE US GOVERNMENT IT IS ASSIGNED WITH PROVIDING A GOVERNMENTWIDE STRATEGIC PLAN FOR CARRYING OUT FEDERAL EXPORT PROMOTION AND EXPORT FINANCING PROGRAMS MEMBERSHIP INCLUDES ALL GOVERNMENT AGENCIES THAT PLAY A ROLE IN EXPORT PROMOTION INCLUDING STATE APPROPRIATELY COMMERCE WAS NAMED THE LEAD AGENCY GIVEN SECRETARY RON BROWN'S LEADERSHIP CAPABILITIES AND HIS COMMITMENT TO EXPORT PROMOTION THE TPCC COULD VERY WELL BRING AN END TO THE GRIDLOCK IN OUR EXPORT PROMOTION POLICIES THIS LEGISLATION PROVIDES OUR NEW PRESIDENT WITH AN OPPORTUNITY TO REDEFINE OUR NATION'S EXPORT PROMOTION POLICIES AND TO PROVIDE A RATIONAL DISTRIBUTION OF RESOURCES FOR ALL EXPORT PROMOTION OFFICES HE WOULD BE WISE TO LOOK AT THE US&FCS STRATEGIC REVIEW AS A MODEL FOR EFFECTIVE REORGANIZATION AND IMPLEMENTATION 9302240153 930224 CLINTON'S GAMBIT TRASH INCENTIVES TO BOOST ECONOMY BY ROBERT L BARTLEY IN MERELY A MONTH IN OFFICE THE CLINTON ADMINISTRATION HAS RUN THE DOLLAR TO A RECORD LOW AGAINST THE YEN PUNCTURED CONSUMER CONFIDENCE AND TAKEN THE BLOOM OFF THE STOCK MARKET ESPECIALLY TRASHING ENTREPRENEURIAL HIGHTECH CUTTINGEDGE ISSUES THE BOND MARKET HAS RALLIED OF COURSE SINCE THE OPTIMUM PRESCRIPTION FOR FALLING INTEREST RATES IS PRECISELY THE GREENSPANCLINTON POLICY MIX OF TIGHT MONEY CONSTRAINING INFLATION AND HIGH TAXES ABORTING RECOVERY THE FINANCIAL MARKETS THAT IS ARE HOMING IN ON THE REAL ISSUE RAISED BY MR CLINTON'S ECONOMIC PROPOSALS TO THOSE OF US WHO ACUTELY REMEMBER THE MALAISE OF THE 1970S AND THE CURE OF THE 1980S THE QUESTION IS NOT CLOSING THE DEFICIT WITH THE RIGHT MIX OF TAXING AND SPENDING THE QUESTION IS WHETHER THE CLINTON PLAN WILL AS ADVERTISED GROW THE ECONOMY TWO DECADES OF EXPERIENCE AND INITIAL MARKET REACTION BOTH SUGGEST THAT THE CLINTON PROPOSALS WILL NOT BOOST THE ECONOMY BUT CRIPPLE IT THE CLINTON BRAIN TRUST OFFERS ESSENTIALLY TWO ARGUMENTS ABOUT WHY THE ECONOMY WILL BENEFIT FROM ITS MISHMASH OF HIGHER TAXES AND REDIRECTED SPENDING PROGRAMS THE FIRST IS STRAIGHT INDUSTRIAL PLANNING THE MASTERMINDS IN THIS GOVERNMENT CAN OUTGUESS THE ECONOMY ABOUT HOW MONEY CAN MOST USEFULLY BE SPENT SO MORE MONEY FOR HIGHWAYS HEAD START PROGRAMS AND TREE PLANTING WILL TRANSLATE INTO FASTER GROWTH IN GROSS DOMESTIC PRODUCT INDUSTRIAL PLANNING IS USUALLY OFFERED SOTTO VOCE SINCE AROUND THE WORLD GOVERNMENTS THAT HAVE TRIED IT ARE ABANDONING IT THE SECOND ARGUMENT IS THAT CLOSING THE DEFICIT WILL LOWER INTEREST RATES THUS BOOSTING PRIVATE INVESTMENT IF SAY YOU RAISE THE CORPORATE TAX RATE BY 10 THE GOVERNMENT WILL COLLECT MORE IN TAXES SO IT WILL BORROW LESS IN THE CREDIT MARKETS MAKING IT EASIER FOR CORPORATIONS TO BORROW BACK THE MONEY YOU JUST TOOK AWAY FROM THEM IN TAXES NATURALLY THEY WILL INVEST MORE GET IT POTENTIAL HOMEOWNERS WILL ALSO BORROW AT LOWER INTEREST RATES BECAUSE THEY PAY A HIGHER ENERGY TAX AND SO ON AND THIS WILL GROW THE ECONOMY IN THE EARLY REACTION TO THE CLINTON SPEECHES THESE ASSERTIONS HAVE BEEN PRETTY MUCH ACCEPTED AT FACE VALUE EXPLICITLY OR IMPLICITLY POLLSTERS HAVE ASKED WOULD YOU PAY HIGHER TAXES TO MAKE THE ECONOMY GROW FASTER OF COURSE RESPONDENTS HAVE ANSWERED THEY'RE NOT OFFERED A CHECK BOX SAYING THE PREMISE OF THIS QUESTION IS BONKERS EARLY CRITICISM HAS FOCUSED ON A DIFFERENT ISSUE THE LACK OF ANY SERIOUS SPENDING RESTRAINT TO ACCOMPANY THE BIG TAX INCREASES THIS IS CERTAINLY A VALID POINT AND A USEFUL EXERCISE IF ONLY TO DISPLAY THE DISINGENUOUSNESS WITH WHICH THE CLINTON PROPOSALS ARE SLATHERED NO BLUE SMOKE AND MIRRORS BUDGET DIRECTOR LEON PANETTA BRAGS EXCEPT THAT TAX INCREASES ARE COUNTED AS SPENDING REDUCTIONS PRESS BRIEFING NUMBERS DON'T ADD UP AND SAVINGS ARE COUNTED UNDER UNEXPLAINED HEADINGS SUCH AS STREAMLINING GOVERNMENT AND ADMINISTRATIVE EFFICIENCIES FEDERAL SPENDING HAS SPUN FURTHER AND FURTHER OUT OF CONTROL EVER SINCE 1974 WHEN THE CURRENT CONGRESSIONALLY DOMINATED BUDGET ACT WAS PASSED BUT AFTER HIS ELECTION MR CLINTON ABANDONED INSTITUTIONAL REFORM SUCH AS THE ITEM VETO INSTEAD HE PROPOSES A BATCH OF NEW SPENDING TO BE LEGISLATED BEFORE SUPPOSED CUTS ARE EVEN CONSIDERED WHEN HE ASKS CRITICS TO BE SPECIFIC ABOUT CUTS THEY CAN START BY SPECIFYING NO NEW MONEY FOR HIGHWAYS HEAD START AND TREE PLANTING AS VALID AS THIS RIPOSTE IS THOUGH BY ITSELF IT IS A LOSING GAME LIKELY TO LEAD TO SOME COMPROMISE WITH EVEN MORE FATAL PARTS OF THE CLINTON PLAN IT'S CERTAINLY TRUE THAT FEDERAL SPENDING HAS TO BE PAID FOR EITHER IN TAXES OR DEFICITS AND THAT IF IT CONTINUES TO GROW FASTER THAN GDP IT WILL EVENTUALLY CONSUME US ALL BUT YOU'LL NEVER CUT SPENDING FAST ENOUGH TO MAKE UP FOR A SHRINKING GDP THE LARGER ISSUE IS HOW DO WE SPEED ECONOMIC GROWTH WE FACED THIS ISSUE AT THE END OF THE 1970S A PERIOD OF EXECRABLE ECONOMIC PERFORMANCE CALLED STAGFLATION WHILE PAUL VOLCKER'S TIGHT MONEY CURBED INFLATION RONALD REAGAN'S TAX CUTS PULLED THE HAT TRICK OF REKINDLING REAL GROWTH THE TAX PROGRAM CONCENTRATED ON INCENTIVES ON REDUCING THE MARGINAL RATE OF TAXATION THE AMOUNT THE GOVERNMENT TAKES OUT OF THE NEXT DOLLAR YOU EARN OVER THE REAGAN YEARS AND WITH HELP FROM DEMOCRATS INCLUDING LLOYD BENTSEN THE TOP MARGINAL INCOME TAX RATE WAS PARED FROM 70 ON INCOME FROM INVESTMENTS AND 50 ON WAGES AND SALARIES TO AS LOW AS 28 TRUE TO HIS POSTELECTION RHETORIC ABOUT REPEALING THE LAST DECADE MR CLINTON WOULD RIP THESE INCENTIVES OUT OF THE ECONOMY GIVEN THE COMPLEXITIES INTRODUCED FIRST BY THE 1990 TAX BOOSTS AND NOW THE CLINTON PLAN THE NEW TOP MARGINAL RATE IS DIFFICULT TO CALCULATE BUT REIGNING EXPERT STEVE ENTIN PEGS IT AT MORE THAN 40 PLUS AN ADDITIONAL BOOST OF 23 IN MEDICARE TAXES IF YOUR INCOME IS IN SALARY WITH THE MARGINAL RATE UP A THIRD SINCE THE END OF THE REAGAN YEARS DISINCENTIVES ARE MOUNTING AND THE ECONOMY IS NERVOUS FOR SAVINGS AND INVESTMENT THE INCENTIVES ARE EVEN WORSE IF YOU SAVE AND BUILD A RETIREMENT INCOME MR CLINTON PROPOSES TO TAX 85 OF YOUR SOCIAL SECURITY BENEFITS ECONOMICALLY THIS IS NOT A TAX ON SOCIAL SECURITY AT ALL BUT A SURTAX ON THE RETURNS FROM YOUR SAVINGS AND IF YOU SELL STOCK BOUGHT BEFORE INFLATION YOU OWE A CAPITAL GAINS TAX ON FICTITIOUS GAINS AS FOR THE DREAD DEFICIT WITH MODERATE SPENDING RESTRAINT AND GOOD INCENTIVES WE CAN GROW OUT OF IT BETWEEN 1945 AND 1973 WE GREW OUT OF DEBT TWICE AS LARGE AS TODAY'S IN RELATION TO THE ECONOMY BUT IF WE PRETEND TO TAX OUR WAY OUT OF DEBT THE PROJECTED REVENUES WILL NOT MATERIALIZE SPENDING WILL CONTINUE TO GROW AND THE ECONOMY WILL FALTER ON PRESENT COURSE MR CLINTON MAY PULL HIS OWN HAT TRICK CRASHING ON BOTH SCYLLA AND CHARYBDIS MR BARTLEY IS EDITOR OF THE JOURNAL 9302240151 930224 JUSTICES SAY STATES MAY TAX LEASING OF CARGO CONTAINERS FOR FOREIGN TRADE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID THAT STATES MAY IMPOSE SALES TAXES ON THE LEASING OF CARGO CONTAINERS USED IN INTERNATIONAL TRADE THE 81 RULING WAS A DEFEAT FOR USBASED LESSORS OF CARGO CONTAINERS WHICH HAD CHALLENGED TENNESSEE'S APPLICATION OF A GARDEN VARIETY SALES TAX TO THE LEASING OF CONTAINERS IN THAT STATE THEY CONTENDED THAT THE TAX VIOLATED INTERNATIONAL AGREEMENTS AND THE CONSTITUTIONAL PROTECTION OF COMMERCE TENNESSEE IS THE ONLY STATE TO HAVE IMPOSED A SALES TAX ON SUCH CONTAINER LEASES BUT OTHER REVENUEHUNGRY STATES MAY NOW FOLLOW ITS LEAD ACCORDING TO LAWYERS FOR CONTAINER AND SHIPPING COMPANIES THESE LAWYERS ALSO SAY THAT IF YESTERDAY'S RULING PROMPTS WIDER STATE TAXATION OF THE CONTAINER BUSINESS FOREIGN NATIONS WHOSE SHIPPERS ARE AFFECTED COULD RESPOND WITH RETALIATORY LEVIES THAT WOULD HURT US BUSINESS INDEED ENGLAND FILED A BRIEF IN THE CASE THAT SPOKE OF SUCH A PROSPECT BUT THE US JUSTICE DEPARTMENT WHICH SUPPORTED TENNESSEE BEFORE THE HIGH COURT CONTENDED THAT STATE TAXATION OF LEASES OF USOWNED CONTAINERS IS ALLOWED BY INTERNATIONAL TREATIES AND CONSISTENT WITH INTERNATIONAL COMMERCIAL PRACTICES CARGO CONTAINERS ARE LARGE REUSABLE STEEL BOXES BUILT TO BE CARRIED BY TRUCK TRAIN AND OCEANGOING SHIP THEY ARE USED IN THE MAJORITY OF US MARINE IMPORTS AND EXPORTS THE RULING INVOLVED ITEL CONTAINERS INTERNATIONAL CORP SAN FRANCISCO WHICH CHALLENGED THE TENNESSEE TAX BUT HAS SINCE GOTTEN OUT OF THE CONTAINERLEASING BUSINESS AT ISSUE WAS 158000 IN TAXES ITEL HAD PAID FOR TAX YEARS 1983 THROUGH 1986 AFTER LOSING IN TENNESSEE STATE COURTS ITEL APPEALED TO THE US SUPREME COURT IN AN OPINION WRITTEN BY JUSTICE ANTHONY KENNEDY THE HIGH COURT RULED THAT TENNESSEE HADN'T VIOLATED ANY INTERNATIONAL ACCORDS OR THE CONSTITUTIONAL PROHIBITION ON STATE INTERFERENCE WITH FOREIGN COMMERCE TENNESSEE HAD A LEGITIMATE INTEREST IN TAXING LEASE TRANSACTIONS IN THAT STATE AND DIDN'T ATTEMPT TO INTERFERE WITH THE FREE FLOW OF COMMERCE BE IT FOREIGN OR DOMESTIC JUSTICE KENNEDY WROTE JUSTICE HARRY BLACKMUN DISSENTED THE MAJORITY HE WROTE INVITES STATES THAT ARE CONSTANTLY IN NEED OF NEW REVENUE TO IMPOSE NEW TAXES ON CONTAINERS THE RESULT I FEAR WILL BE A PATCHWORK OF STATE TAXES THAT WILL BURDEN INTERNATIONAL COMMERCE AND FRUSTRATE THE PURPOSES OF A WORLDWIDE TREATY THAT GOVERNS CONTAINER SHIPPING ITEL CONTAINERS INTERNATIONAL CORP VS TENNESSEE THE SUPREME COURT MADE IT MORE DIFFICULT FOR REPRESENTATIVES OF RACIAL MINORITIES TO DEMAND THAT STATES REDRAW LEGISLATIVE DISTRICTS TO CREATE AREAS IN WHICH NONWHITE VOTERS PREDOMINATE THE HIGH COURT PREVIOUSLY SAID THAT TO MOUNT A CLAIM THAT A STATE'S DISTRICTING ARRANGEMENTS WEAKEN THE POTENTIAL VOTING POWER OF NONWHITE CITIZENS MINORITY GROUPS MUST AS A PRELIMINARY MATTER PROVE THREE CONDITIONS THE FIRST CONDITION IS THAT THERE IS A LARGE AND GEOGRAPHICALLY COMPACT MINORITY POPULATION THAT COULD BE SHAPED INTO A VOTING DISTRICT THE SECOND IS THAT THE MINORITY POPULATION IS POLITICALLY COHESIVE AND GENERALLY VOTES TOGETHER THE THIRD IS THAT WHITE VOTERS IN THE STATE GENERALLY VOTE AS A BLOC TO DEFEAT MINORITY CANDIDATES IN YESTERDAY'S UNANIMOUS RULING WHICH CAME IN A CASE FROM MINNESOTA THE HIGH COURT RESTATED THESE REQUIREMENTS ESPECIALLY THE ONE ON MINORITY POLITICAL COHESIVENESS IN A WAY THAT COULD MAKE IT MORE DIFFICULT TO CHALLENGE DISTRICTING ARRANGEMENTS IN COURT THE JUSTICES EMPHASIZED THAT THERE MUST BE SPECIFIC EVIDENCE OF BLOC VOTING BY MINORITIES NOT MERELY A PRESUMPTION OF THIS PHENOMENON BASED ON GENERAL POLITICAL TRENDS THE HIGH COURT REVERSED A RULING BY A SPECIAL FEDERAL TRIAL COURT THAT HAD IGNORED THE THREEPART ANALYSIS WHEN IT REDREW THE LINES FOR MINNESOTA STATE SENATE DISTRICTS TO CREATE A PREDOMINANTLY NONWHITE DISTRICT IN MINNEAPOLIS 9302240149 930224 MAY STORES REGISTERS GAINS SPLITS STOCK AND BOOSTS DIVIDEND ST LOUIS MAY DEPARTMENT STORES CO BENEFITING FROM STRONG SALES AND CONTINUED COSTCONTROL EFFORTS POSTED A 20 JUMP IN FOURTHQUARTER EARNINGS DECLARED A STOCK SPLIT AND RAISED ITS DIVIDEND IN THE PERIOD ENDED JAN 30 THE RETAILER'S NET INCOME ROSE SLIGHTLY ABOVE ANALYSTS' PROJECTIONS TO 319 MILLION OR 253 A SHARE FROM THE YEARAGO'S 266 MILLION OR 212 A SHARE REVENUE CLIMBED 72 TO 361 BILLION FROM 336 BILLION MAY ALSO DECLARED A 2FOR1 STOCK SPLIT AND IN VIEW OF ITS SALES AND EARNINGS GROWTH THE COMPANY BOOSTED ITS ANNUAL DIVIDEND 11 ON A PRESPLIT BASIS TO 184 A SHARE FROM 166 BOTH THE SPLIT AND THE NEXT QUARTERLY DIVIDEND WILL BE PAID JUNE 15 TO STOCK OF RECORD JUNE 1 THESE ACTIONS REFLECT MAY'S STRONG FINANCIAL PERFORMANCE FOR 1992 AS WELL AS OUR CONFIDENCE IN THE COMPANY'S LONGTERM GROWTH SAID DAVID C FARRELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER DESPITE THE IMPROVED RESULTS MAY SHARES FOLLOWED THE DOWNWARD TREND OF OTHER RETAIL STOCKS YESTERDAY TRADING EXDIVIDEND MAY WAS DOWN 1375 TO 68625 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING WALL STREET BATTERED THE INDUSTRY BECAUSE OF CONCERNS THAT PRESIDENT CLINTON'S PROPOSED TAX BOOSTS WOULD SCARE CONSUMERS INTO TIGHTENING THEIR PURSE STRINGS AMONG OTHER THINGS RIVAL NORDSTROM INC'S STOCK PLUNGED 15 AFTER THE RETAILER CAUTIONED ANALYSTS THAT FISCAL 1994 EARNINGS COULD FALL SHORT OF WALL STREET'S 2ASHARE PROJECTION NORDSTROM'S WARNING FOLLOWED ITS RELEASE MONDAY OF SLIGHTLY BETTERTHANEXPECTED FOURTHQUARTER EARNINGS IN NATIONAL OVERTHECOUNTER TRADING NORDSTROM SHARES FELL 575 TO CLOSE AT 32875 DURING THE QUARTER MAY POSTED A HEALTHY 69 JUMP IN SALES AT STORES OPEN AT LEAST A YEAR DUE IN PART TO CONSUMERS' MORE FREESPENDING WAYS THIS PAST CHRISTMAS ANALYSTS HAVE SINGLED OUT MAY FOR ITS UNRELENTING EFFORTS TO CONTAIN COSTS AS OF JAN 31 IT HAD CONSOLIDATED SIX DEPARTMENT STORE DIVISIONS INTO THREE NOW CALLED ROBINSONS MAY KAUFMAN'S AND FILENE'S IN MAY THE COMPANY WILL FURTHER CONSOLIDATE BY MERGING MAY D&F INTO FOLEY'S AND IN JUNE IT WILL COMPLETE THE RELOCATION OF ITS MERCHANDISING OPERATIONS TO THE ST LOUIS HEADQUARTERS FROM NEW YORK FOR THE YEAR MAY'S NET INCOME JUMPED 17 TO 603 MILLION OR 471 A SHARE FROM 515 MILLION OR 402 A SHARE IN 1991 REVENUE ROSE 5 TO 1115 BILLION FROM 1062 BILLION 9302240147 930224 TECHNOLOGY & MEDICINE IN THE LAB STANFORD TEAM STRIVES FOR SYNTHETIC TAXOL BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF IF ONLY IT CAME FROM SOMETHING COMMON LIKE PINE AN OREGON FORESTRY OFFICIAL ONCE SAID GIVING VOICE TO A COMMON CONCERN OVER TAXOL THE CANCER DRUG MADE FROM RARE PACIFIC YEW TREES PAUL WENDER DIDN'T HEAR THAT FORESTER'S WISH BUT SOMEHOW THE STANFORD UNIVERSITY CHEMISTRY PROFESSOR IS ANSWERING IT HE HAS SET OUT TO SYNTHESIZE TAXOL AND THE RAW MATERIAL OF HIS ALCHEMY IS NOTHING LESS THAN PINENE A CHEAP AND PLENTIFUL EXTRACT OF PINE TREES IF ONE COULD CONVERT THE PINENE IN ONE QUART OF TURPENTINE INTO TAXOL HE SAYS YOU'D HAVE ENOUGH DRUG TO TREAT MAYBE 1000 PATIENTS THESE DAYS DR WENDER'S LABORATORY ON THE THIRD FLOOR OF STANFORD'S MUDD CHEMISTRY BUILDING RARELY SLEEPS A CORPS OF 15 GRADUATE STUDENTS AND POSTDOCTORAL FELLOWS WORKS VIRTUALLY AROUND THE CLOCK TENDING NONSTOP CHEMICAL REACTIONS THAT YIELD THE CHEMICAL BUILDING BLOCKS OF TAXOL CREW MEMBERS WORK FROM 12 TO 17 HOURS A DAY DAESUNG LEE A POSTDOCTORAL FELLOW FROM SEOUL IS THE LAB'S MARATHON MAN RUNNING CHEMICAL REACTIONS FROM 9 AM UNTIL 3 AM THE NEXT DAY NANCY KRAUSS ALSO A POSTDOCTORAL FELLOW AND SINGLE MOTHER EXPLAINS CHILDCARE TRIMS HER LAB STINT TO JUST 7 AM TO 7 PM THE CONFERENCE ROOM COUCH BECOMES A CRASH PAD WHEN WEARY CHEMISTS NEED TO BABYSIT OVERNIGHT REACTIONS YOU THINK ABOUT THIS ALL THE TIME EXPLAINS DR WENDER A WIRY 45YEAROLD YOUR BODY ALLOWS YOU TO SLEEP MAYBE THREE OR FOUR HOURS THEN I WAKE UP FULL OF QUESTIONS VOLATILE CHEMICALS CAN IGNITE FLASH FIRES OR BELCH IRRITATING VAPORS SO THE LAB BENCHES ARE TOPPED BY PROTECTIVE HOODS ON THE GLASS AND BLUEENAMELED HOODS ARE SCRIBBLED CHEMICAL STRUCTURES AND MORE MUNDANE GRAFITTI LIKE GET CHINESE FOOD SOFT ROCK IS PUNCTUATED BY THE TINKLE OF GLASS FLASKS AND TESTTUBES ANTHONY SHUKER A FORMER SQUASH PLAYER FROM THE UNIVERSITY OF NOTTINGHAM IN ENGLAND DRAWS TAXOL'S CHEMICAL STRUCTURE ON A YELLOW PAD AND EXPLAINS WHY IT'S SO TOUGH TO MAKE TAXOL'S STRUCTURE UNPRECEDENTED IN MEDICINAL CHEMISTRY RESEMBLES A FRACTURED DAISY CHAIN LINKING FOUR CARBONBASED RINGS AND FESTOONED WITH CHEMICAL SIDE CHAINS TOUGHEST TO MAKE IS THE SECOND OR BRING AN OCTAGONAL STOP SIGN MADE OF EIGHT CARBON ATOMS ANOTHER DIFFICULTY TAXOL IS ASYMMETRICAL ONLY TAXOL MOLECULES ARRAYED IN A RIGHTHANDED DIRECTION WILL FUNCTION IN THE BODY BY BINDING TO MICROTUBLES TINY SCAFFOLDS THAT IMPRISON CANCER CELLS TO HALT MALIGNANT GROWTH SO FAR THIS ANTICANCER POWER EARNED TAXOL MANUFACTURED BY BRISTOLMYERS SQUIBB CO MARKET APPROVAL TO TREAT OVARIAN CANCER AND IT'S SHOWING EARLY PROMISE IN BREAST AND CERTAIN LUNG TUMORS LUCKILY THOUGH DR WENDER'S PINENE STARTER MATERIAL IS PREARRANGED IN A RIGHTHANDED DIRECTION AND COMES EQUIPPED WITH 10 OUT OF THE 20 CARBON ATOMS NEEDED TO MAKE THE DRUG AS DR SHUKER EXPLAINS THE RECIPE THE BASIC CHEMICAL STEPS INVOLVE ADDING OXYGEN AND COUPLING CARBON ATOMS TO MAKE A BOND THEN THEY EXPOSE THE MATERIAL TO LIGHT TO EXCITE ELECTRONS AND TRIGGER A REARRANGEMENT OF THE ATOMS A BIT MORE OXYGEN AND TINKERING YIELDS THREE OUT OF THE FOUR RINGS NEEDED TO FORM THE BACKBONE OF TAXOL AND A WHOLE FAMILY OF RELATED CHEMICALS KNOWN AS TAXANES FORMING THAT FOURTH RING IS STRUCTURALLY TRICKY DR SHUKER SAYS HE LIKENS IT TO JOINING FOUR ROOF JOISTS TO MOUNT A ROOF ON A HOUSE AFTER THAT WHAT'S LEFT IS NOT MUCH ADDING SMALL SIDE CHAINS BUT IT'S THE MOST DIFFICULT PART HE ADDS TO FINISH THESE DELICATE STEPS DR WENDER DIVIDED HIS TEAM INTO FIVE STRATEGIC GROUPS EACH ATTACKING THE TAXOL MOLECULE FROM A DIFFERENT ANGLE EVERY DAY THEY RUN CHEMICAL REACTIONS IN RELAY RACE FASHION SO THAT MEMBERS CAN TAKE OVER FOR EACH OTHER IN THE PRODUCTION LINE ONE RECENT AFTERNOON JIM SUTTON IS COOKING UP A SIDE CHAIN TO ADD ONTO THE GROWING TAXOL MOLECULE USING A COLD REACTION IN A NITROGEN BATH HIS FLASK ENCRUSTED IN ICE CRYSTALS THE PRIOR NIGHT A SIMILAR REACTION WENT HAYWIRE SPEWING OUT FOUR UNUSABLE MOLECULES BECAUSE NOTHING IS THROWN AWAY DR SHUKER SAYS IT TOOK EIGHT HOURS TO CORRECT PURIFY AND START AGAIN THERE WAS A LOT OF CURSING AROUND HERE HE ADDS THOUGH THE TAXOL SHORTAGE HAS EASED AMID NEW WAYS TO WRING THE MATERIAL FROM RENEWABLE YEW NEEDLES DR WENDER REMAINS STEADFASTLY COMMITTED TO HIS PROJECT OF TOTAL SYNTHESIS NOT ONLY COULD IT BE CHEAPER BUT HE ENVISIONS IMPROVED VERSIONS THAT WOULD BE MORE POTENT WATERSOLUBLE EASIER TO ADMINISTER AND PURGED OF UNPLEASANT SIDE EFFECTS NATURAL TAXOL WHICH HE SAYS HAS THE SOLUBILITY OF CRUSHED BRICK MUST BE DISSOLVED IN AN OILY BASE OF CASTOR OIL AND ALCOHOL NATURE IS LIMITED AS TO THE FORMS OF TAXOL IT CAN PROVIDE FORTUNATELY PEOPLE ARE MORE IMAGINATIVE DR WENDER SAYS AND THAT HE SAYS IS THE BEAUTY OF DESIGNER DRUGS TO DEMONSTRATE THIS GRADUATE STUDENT DAVID RAWLINS SITS AT A COMPUTER SCREEN TO DISPLAY A 3D COLOR MODEL OF THE TAXOL MOLECULE SITTING SIDE BY SIDE WITH A DESIGNER VERSION THEY'RE ALMOST IDENTICAL IF WE COULD MAKE IT WATER SOLUBLE WE COULD GIVE IT TO PATIENTS MORE EASILY HE SAYS WITH LUCK CANCER CELLS WON'T DETECT THE DESIGNER MOLECULE'S DIFFERENCE AND WILL STILL BIND TO IT AND DIE ALL THIS IS MORE THAN JUST AN INTELLECTUAL EXERCISE DR WENDER INSISTS HE RECALLS A LETTER FROM A WOMAN IN PENNSYLVANIA WHOSE HUSBAND HAD A TUMOR BUT COULDN'T GET INTO A CLINICAL TRIAL OF TAXOL AFTER HIS DEATH SHE WROTE TO ME AND GOT HER FRIENDS TO SEND IN CONTRIBUTIONS OF 10 HE SAYS SO PEOPLE IN MY LAB KNOW THE HUMAN ISSUES ON ANY GIVEN DAY THEY MAY BE DOING CHEMICAL REACTIONS AND DISTILLING SOLVENTS BUT THEY HAVE THE VISION TO SEE BEYOND THE DAY'S ROUTINE BESIDES PATIENTS TWO GROUPS EAGERLY AWAITING RESULTS FROM DR WENDER'S LAB ARE HIS TWO MAJOR GRANT FUNDING AGENCIES THE NATIONAL CANCER INSTITUTE IN BETHESDA MD AND BRISTOLMYERS SQUIBB IN NEW YORK WHAT I'D REALLY LIKE IS TO FILL A BOTTLE WITH TAXOL AND GIVE IT TO THE NCI HE SAYS THAT WOULD BE A PLEASURE BEYOND BELIEF AND WE WILL DO IT I HAVE NO DOUBT 9302240146 930224 KIRSCHNER MEDICAL CORP DEBT TIMONIUM MD KIRSCHNER MEDICAL CORP SAID IT WILL RECORD A 27 MILLION GAIN IN THE FIRST QUARTER AFTER EXTINGUISHING 49 MILLION OF DEBT OWED TO MINNESOTA MINING & MANUFACTURING CO THE MAKER AND MARKETER OF JOINT RECONSTRUCTION PRODUCTS AND SURGICAL SUPPLIES WILL PAY 3M 500000 AND ISSUE IT 265000 UNREGISTERED SHARES KIRSCHNER SAID RETIRING THE DEBT WILL HELP IMPROVE THE COMPANY'S BALANCE SHEET IN THE 1992 FIRST QUARTER KIRSCHNER MEDICAL HAD NET INCOME OF 1 MILLION OR 39 CENTS A SHARE ON REVENUE OF 186 MILLION IN OVERTHECOUNTER TRADING YESTERDAY KIRSCHNER GAINED 50 CENTS TO 750 9302240145 930224 PAMRAPO TO BUY BACK SHARES BAYONNE NJ PAMRAPO BANCORP INC SAID IT WOULD BUY BACK AS MUCH AS 5 OF ITS 16 MILLION COMMON SHARES OUTSTANDING FROM TIME TO TIME IN OPEN MARKET TRANSACTIONS 9302240144 930224 WHO'S NEWS ALLIED PRODUCTS CORP ALLIED PRODUCTS CORP CHICAGO JAMES J HAYDEN 57YEAROLD CHIEF FINANCIAL OFFICER OF THIS AGRICULTURAL EQUIPMENT AND INDUSTRIAL PRODUCTS CONCERN WAS PROMOTED TO EXECUTIVE VICE PRESIDENT FROM SENIOR VICE PRESIDENT 9302240143 930224 FINANCING BUSINESS PILLOWTEX CORP PILLOWTEX CORP DALLAS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 35 MILLION COMMON SHARES AT AN ESTIMATED PRICE OF 13 TO 15 A SHARE THE REGISTRATION STATEMENT ALSO COVERS THE SALE OF 400000 ADDITIONAL SHARES BY A SHAREHOLDER PILLOWTEX WHICH MAKES BEDDING PRODUCTS SAID IT WILL USE PROCEEDS OF THE OFFERING TO REPAY DEBT THE OFFER IS BEING UNDERWRITTEN BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MERRILL LYNCH & CO 9302240142 930224 WHO'S NEWS IVAX CORP IVAX CORP MIAMI FLA DANTE B FASCELL 75 YEARS OLD WAS NAMED TO THE BOARD OF THIS SPECIALTY CHEMICAL PHARMACEUTICAL AND MEDIAL DIAGNOSTICS HOLDING COMPANY MR FASCELL A FORMER FLORIDA CONGRESSMAN SUCCEEDS NIGEL NORTON WHO RETIRED 9302240141 930224 PEPPERAND SALT BUT NOT IN A MOTEL AFTER STUDYING IT HARD AND LONG WHEN I SAY IT'S MY UNDERSTANDING I FIND I'M USUALLY WRONG 9302240140 930224 LETTERS TO THE EDITOR DEFICIT CUTTING PLANS NOT ALWAYS MONSTERS DAVID MALPASS'S JAN 29 AMERICAS COLUMN SUCCESSFUL LATIN ECONOMIES SHOW THE GAIN BEFORE THE PAIN DRAWS SOME RATHER QUESTIONABLE PARALLELS BETWEEN LATIN AMERICAN ECONOMIES AND THAT OF THE US HE STATES THAT IN SUCCESSFUL LATIN ECONOMIES SUCH AS MEXICO'S THE FORMULA FOR SUCCESS REPEATEDLY HAS BEEN SHOWN TO ENCOMPASS STRENGTHENING THE PRIVATE SECTOR THROUGH FISCAL AND ECONOMIC LIBERALIZATION AND NOT IN PURSUING AUSTERITY PROGRAMS WHICH APPEAR TO BE DESIGNED SOLELY TO CUT GOVERNMENT BUDGET DEFICITS WHILE HIS ASSESSMENT OF THE BENEFITS OF PRIVATESECTORDRIVEN REFORM IS EXTREMELY WELL RESEARCHED AND ARTICULATED IT IS SIMPLISTIC AT BEST TO CLAIM FIRST THAT DEFICIT REDUCTION PROGRAMS ARE THE MAIN REASON FOR FAILED REFORM PROGRAMS IN LATIN AMERICA AND CONSEQUENTLY FOR THE IMPOSITION OF ECONOMIC HARDSHIP ON THE PEOPLE AND SECOND THAT THE CLINTON ADMINISTRATION MUST NECESSARILY APPLY THIS MODEL TO THE US ECONOMY AND REALIZE THAT DEFICIT REDUCTION WILL IMPOSE UNDUE HARDSHIPS ON THE AMERICAN PUBLIC DEFICIT REDUCTION PROGRAMS ARE HARDLY THE ONLY REASON THAT ECONOMIC HARDSHIP MIGHT ENSUE FROM SUCH GOVERNMENT ACTION SEVERAL LATIN ECONOMIES ARE OFTEN CHARACTERIZED ALSO BY INFLATION OR HYPERINFLATION AND ARCHAIC PROTECTIONIST TRADE POLICIES ADDITIONALLY AS MR MALPASS HIMSELF SUGGEST DEFICIT REDUCTION SOMETIMES IS ACHIEVED LARGELY THROUGH EXCESSIVE INCREASES IN THE MONEY SUPPLY YET THIS IS A COMPLETELY DIFFERENT ECONOMIC POLICY ISSUE THAN THAT OF USING HIGHER TAXES TO HELP SHAVE THE DEFICIT ONE PROBLEM IS FISCAL THE OTHER MONETARY THUS HARDSHIP MAY RESULT NOT DIRECTLY FROM DEFICIT REDUCTION PROGRAMS BUT FROM OTHER POSSIBLY MORE DESTABILIZING ELEMENTS TO THE OVERALL AUSTERITY PACKAGE MR MALPASS SHOULD ACQUIRE A BASIC UNDERSTANDING OF OPENECONOMY MACROECONOMICS BEFORE LINKING LATIN AMERICA'S MISTAKES WITH POTENTIAL POLICY ERRORS OF THE NEW ADMINISTRATION CLEARLY THE DYNAMICS OF SMALLER DEVELOPING ECONOMIES WHICH HAVE SUFFERED DECADES OF SHORTSIGHTED HIGHLY PROTECTIONIST IMPORTSUBSTITUTIONLED ECONOMIC POLICIES AND THAT POSSESS AN ENTIRE GENERATION OF CONSUMERS WHO HAVE NEVER LIVED WITH INFLATION LOWER THAN DOUBLEDIGIT LEVELS ARE VERY DISTINCT FROM THOSE THAT CHARACTERIZE THE CONTINENTAL DEVELOPED RELATIVELY OPEN AND STABLE ECONOMIC ENVIRONMENT OF THE US IT IS THIS DIFFERENCE THAT CHANGES THE RELATIONSHIP AMONG THE MOST IMPORTANT VARIABLES IN THE STABILITY EQUATION FISCAL MONETARY TRADE AND INDUSTRIAL POLICY WE CANNOT THUS ASSUME THAT POLICIES TO PROMOTE QUESTIONABLY DEFINED GROWTH ABOVE ALL ELSE WILL NECESSARILY BE THE ANSWER TO OUR CURRENT ECONOMIC TROUBLES IT IS UNLIKELY THAT WE ARE ON THE BRINK OF SUFFERING THROUGH LATIN AMERICASTYLE ECONOMIC DIFFICULTIES MERELY BECAUSE WE ATTEMPT TO DEAL WITH THE BUDGET DEFICIT HEADON RATHER THAN WAITING FOR TRICKLEDOWN GROWTH TO LEAD TO ITS THEORETICALLY EVENTUAL DISAPPEARANCE IT MUST BE KEPT IN MIND THAT THE REAGANBUSH YEARS WERE CHARACTERIZED BY UNPRECEDENTED ECONOMIC GROWTH YET THE BUDGET DEFICIT ONLY SKYROCKETED CREATING UPWARD PRESSURE ON LONGTERM INTEREST RATES MAKING IT MORE DIFFICULT TO ADMINISTER SOUND MONETARY AND FISCAL POLICY THE REALITY IS THAT SOUND POLICIES FOR GROWTH REQUIRE A GREAT DEAL MORE ATTENTION TO A MULTIPLICITY OF VARIABLES THAN TO A SIMPLISTIC DRAWING OF PARALLELS BETWEEN DISSIMILAR ECONOMIES 9302240139 930224 LEISURE & ARTS MOBILE GUIDE THE NAME IS THE GAME BY RAYMOND SOKOLOV BERLIN IT IS ALMOST TOO EASY NOW TO PASS FROM FORMER WEST TO EAST BERLIN A TAXI CAN DRIVE RIGHT THROUGH THE BRANDENBURG GATE INTO THE DESOLATION OF BANAL GOVERNMENT BUILDINGS LEFT BY THE COMMUNISTS THE BETTER WAY TO MAKE THE TRIP AND GET SOME FEEL FOR RECENT HISTORY IS TO TAKE THE SBAHN THE ELEVATED RAIL LINE THAT CONNECTS THE CAPITALIST BUSTLE OF THE WESTERN BUSINESS CENTER WITH FRIEDRICHSTRASSE STATION ONCE A CENTRAL CHECKPOINT BETWEEN THE TWO ZONES NOW JUST A BIG UGLY TRANSIT HUB IF YOU DON'T GET OFF THE TRAIN YOU CAN JUST KEEP ON RIDING TO THE END OF THE LINE IN THEORY IN FACT SOME OF THE MOOD OF THE OLD SYSTEM IS PRESERVED BY A NEW SYSTEM OF INTERRUPTIONS CALLED PENDELVERKEHR OR PENDULUM TRAFFIC BECAUSE OF FUNDAMENTAL INFRASTRUCTURE REPAIRS SOME TRAINS NOW GO ONLY A FEW STOPS AND THEN REVERSE DIRECTION FORCING THROUGHTRAVELERS TO TRANSFER THIS PARTICULARLY AFFECTS ROUTES THROUGH FRIEDRICHSTRASSE AND UTTERLY CONFUSES TOURISTS IT ADDS TO THE ILLUSION OF A RETURN TO THE BAD OLD DAYS AT FRIEDRICHSTRASSE THAT THE STATION OFFICE IS POSTED WITH A SIGN SAYING THE EQUIVALENT OF NO INFORMATION AND THAT FOR NO OBVIOUS REASON AN OFFICIAL WITH A GUARD DOG IN TOW CAN EMERGE FROM THAT OFFICE WALK DOWN THE PLATFORM AND THEN RETURN TO HIS DESK BASICALLY HOWEVER THE SBAHN OFFERS THE VISITOR A CONVENIENT BIRD'SEYE VIEW OF THE NO MAN'S LAND WHERE THE WALL ONCE WAS A GHASTLY MESS NOW BUT UNDOUBTEDLY THE MOST VALUABLE LARGE PIECE OF VACANT URBAN LAND ON THE PLANET AND AT FRIEDRICHSTRASSE NO ONE PAYS ANY ATTENTION AS YOU LEAVE THE STATION PENETRATE EASTERN BERLIN AND STROLL TO THE MUSEUMINSEL THE ISLAND OF MUSEUMS HOUSING THE GREATEST PIECE OF ART BOOTY ANYWHERE IN THE FORMER IMPERIALIST WORLD OUTSIDE THE BRITISH MUSEUM THE PERGAMON ALTAR ONLY THE ELGIN MARBLES KIDNAPPED FOR THEIR OWN GOOD FROM THE ACROPOLIS AT ATHENS AND HELD JEALOUSLY IN LONDON EVER AFTER CAN COMPETE WITH THE FABULOUS FRIEZE UNEARTHED BY GERMAN INDUSTRY IN ASIA MINOR IN THE 19TH CENTURY INSTALLED IN BERLIN THIS SHRINE TO THE VICTORIOUS BATTLE OF THE OLYMPIAN GODS AND HERCULES AGAINST THE GIANTS CAME TO STAND FOR THE RISE OF THE GERMAN EMPIRE AS AN EQUAL TO THE BRITISH OUR GREEK MARBLES WERE AS GOOD AS YOUR GREEK MARBLES LATER DURING THE COLD WAR BECAUSE OF THE ISOLATION OF EAST BERLIN THE RENOWN OF THE PERGAMON ALTAR FADED A BIT WHEN MELINA MERCOURI AS CULTURE MINISTER OF A LEFTISH GREEK GOVERNMENT WOULD DEMAND THAT THE BRITISH RETURN THE ELGIN MARBLES NO ONE THOUGHT TO ASK HER WHY SHE WASN'T IN ALL FAIRNESS ALSO DEMANDING THE RETURN OF THE PERGAMON ALTAR TO THE TURKS WITHIN GERMANY THE PERGAMON ALTAR HAS INSPIRED MUCH HEATED SCRAPPING AMONG THOSE PRONE TO FINDING POLITICAL MEANING IN ART THE BLOODY STRIFE OF GODS AND GIANTS HAS BEEN VARIOUSLY VIEWED AS THE TRIUMPH OF GREEKS OVER BARBARIANS OF ROMANS OVER GREEKS OF GERMANS OVER OTHER PEOPLES AND OF EUROPEAN IMPERIALISTS OVER COLONIZED PEOPLES AROUND THE WORLD THE CONTEMPORARY GERMAN NOVELIST PETER WEISS MADE AN ELOQUENT CASE FOR THE PERGAMON ALTAR AS A HUGE SYMBOL OF RACISM AND REPRESSION AND HIS WRITING CAUGHT THE IMAGINATION OF A CHILEAN ARTIST LIVING IN NEW YORK ALFREDO JAAR SO A VISITOR INNOCENTLY MAKING HIS FIRST PILGRIMAGE TO THE MUSEUMINSEL ENTERS THE PERGAMON PRECINCT AND SEES BEFORE ALL ELSE 15 NEON SIGNS ARRAYED ON THE ALTAR STEPS THEY ARE THE NAMES OF GERMAN CITIES WHERE ATROCITIES AGAINST FOREIGNERS AND REFUGEES HAVE RECENTLY BEEN COMMITTED BY GERMAN NEONAZIS AND OTHER LOUTS AND THE PROGRAM TO THE EXHIBITION MR JAAR'S PERGAMONPROJEKT GIVES BRIEF ACCOUNTS OF SUCH ASSAULTS ARSON BRAWLS AND DISMEMBERMENT IN ROSTOCK AND GREIFSWALD BERLIN ITSELF AND MANY OTHER PLACES IN THE NEWLY UNIFIED FEDERAL REPUBLIC IT IS AN EASY STEP TO CONNECT THESE XENOPHOBIC BATTERIES WITH THE HELLENIC MAYHEM OVERHEAD AND THAT IS WHAT MR JAAR EXPLICITLY INTENDS ACCORDING TO THE CATALOG WHICH SPEAKS OF HIS HIGH SENSITIVITY TO AGGRESSION AGAINST FOREIGNERS AS A CHILEAN LIVING IN NEW YORK DOES THIS MEAN THAT MR JAAR HAS BEEN SET UPON IN SOHO BY SKINHEADS SCREAMING ANTIHISPANIC EPITHETS ACTUALLY HIS WELCOME IN NORTH AMERICA HAS BEEN FAIRLY WARM INCLUDING MANY EXHIBITIONS IN MAJOR MUSEUMS AND GALLERIES PERHAPS THE POINT IS THAT ANYONE RESIDENT IN NEW YORK IS IPSO FACTO AN EXPERT ON XENOPHOBIC VIOLENCE NOT TO MENTION THE IMPERIALIST REPRESSION OF OTHERS THIS IS APPARENTLY NOT THE VIEW OF THE GERMAN CONCEPTUAL ARTIST LOTHAR BAUMGARTEN WHO WHILE MR JAAR WAS DEFACING THE PERGAMON ALTAR WITH HIS NEON AGGRESSION AGAINST THE GREAT RELIGIOUS ART OF A VANISHED CIVILIZATION WAS DEFACING THE SPIRAL WALLS OF FRANK LLOYD WRIGHT'S GUGGENHEIM MUSEUM IN NEW YORK MR BAUMGARTEN IS A DISCIPLE OF THE GERMAN NEODADAART GURU JOSEPH BEUYS WHOSE UNDERWHELMING DRAWINGS ARE NOW AT THE MUSEUM OF MODERN ART MR BAUMGARTEN'S AMERICA INVENTION UP UNTIL MARCH 7 HAS APPARENTLY FILLED AN EMPTY SLOT IN THE GUGGENHEIM'S SPECIALEXHIBITION SCHEDULE BY PAINTING THE NAMES OF MANY AMERICAN INDIAN TRIBES ON WRIGHT'S CURVING PARAPETS NOW DON'T JUMP TO ANY EASY CONCLUSIONS ABOUT THIS MR BAUMGARTEN AN INDIAN BUFF IS FAR TOO FINELY WROUGHT IN HIS HIGH SENSITIVITY TO THE FATEFUL ENCOUNTER OF INDIGENOUS PEOPLES AND EUROPEAN INTRUDERS TO BE USING HIS ELEGANTLY PAINTED GRAFFITI TO PLACE BLAME ON THE WHITE COLONIZERS IN THE NEW WORLD NONE OF WHOM THANKS TO GERMAN BACKWARDNESS AT THE TIME WERE GERMAN ALTHOUGH IT IS TRUE THAT HE DOES NOT INCLUDE ANY NAMES OF WHITE TRIBES HERE NO MR BAUMGARTEN'S INTENTIONS ARE SO BEFOGGED BY THEORETICAL GABBLE A RICH MULCH OF WHICH CAN BE FOUND IN THE OVERPRICED EVEN THE GUGGENHEIM CASHIER APOLOGIZED FOR IT UNBIDDEN 14 MAGAZINECATALOG THAT HE IS COVERED FROM ANY LINE OF ATTACK HE DOESN'T BLAME US HE ONLY WANTS US TO LISTEN WELL I SAY NEW YORKERS AMERICANS EVEN INDIANS DON'T NEED SOME GERMAN TO BE REMINDING US ABOUT GENOCIDE IT WON'T WASH NOT THIS CENTURY OR PROBABLY EVEN THE NEXT REALLY SENSITIVE AMERICANS AND GERMANS IF THEY DIDN'T HAVE BETTER THINGS TO DO SHOULD BE DEMONSTRATING AGAINST THE ARROGANCE OF MUSEUM DIRECTORS WHO ARE ALLOWING PEOPLE WITHOUT A SHRED OF OBSERVABLE TALENT AS ARTISTS TO DEFACE THEIR MUSEUMS THERE ARE MORE THAN ENOUGH GERMANS STILL AROUND WHO HAVE SEEN WHAT HAPPENS WHEN POLITICS INVADES THE SHRINE OF ART AND PERVERTS IT FOR A LOFTYSOUNDING AIM 9302240138 930224 ASSOCIATED BANCCORP ENDS TALKS GREEN BAY WIS ASSOCIATED BANCCORP SAID IT ENDED NEGOTIATIONS ON ITS PROPOSED ACQUISITION OF MIDAMERICA NATIONAL BANCORP OF CHICAGO LAST MONTH THE COMPANIES SAID THEY HAD SIGNED A LETTER OF INTENT ON A PROPOSED MERGER VIA A STOCK SWAP ASSOCIATED IS A MULTIBANK HOLDING COMPANY WITH FACILITIES IN WISCONSIN AND ILLINOIS MIDAMERICA IS THE PARENT COMPANY OF MIDAMERICA NATIONAL BANK OF CHICAGO NEITHER COMPANY OFFERED AN EXPLANATION FOR THE TERMINATION OF TALKS 9302240137 930224 BUSINESS & RACE BY LEON E WYNTER NOW PITCHING TO HISPANICS MAJOR LEAGUE BASEBALL HISPANICS ARE UNDERREPRESENTED AT THE BALLPARK BASEBALL SAYS SO ITS MARKETING ARM IS WINDING UP TO DELIVER MORE OF THEM MAS THE NATION'S LARGESTCIRCULATION SPANISHLANGUAGE MAGAZINE WILL INCLUDE IN ITS APRIL ISSUE A 1993 SEASON PREVIEW THE ONLY SPANISHLANGUAGE PUBLICATION LICENSED TO BEAR BASEBALL'S STAMP MICHAEL BERNSTEIN BASEBALL'S MANAGER OF PUBLISHING SAYS WE DETERMINED THEIR CIRCULATION REACHED MORE SPANISHSPEAKING HOUSEHOLDS THAN ANY OTHER SPANISHLANGUAGE PUBLICATION DOMESTICALLY MAS PUBLISHED BY UNIVISION OF MIAMI SAYS A TEST GUIDE LAST SPRING RAISED CIRCULATION 25 IT EXPECTS THIS APRIL'S ISSUE TO DRAW SPORTSORIENTED ADVERTISERS THE MAGAZINE ORDINARILY WOULDN'T ATTRACT BASEBALL ALSO IS NEGOTIATING TO START A WEEKLY HALFHOUR TELEVISION SHOW THIS SPRING WITH TELEMUNDO GROUP THE NO 2 SPANISHLANGUAGE NETWORK IN THE US THE MARKETING PUSH COINCIDES WITH HISPANICS' RISING PROFILE IN BASEBALL HISPANIC PLAYERS WILL FILL ABOUT 17 OF BASEBALL'S 700 ROSTER SLOTS THIS SEASON THE HIGHEST PERCENTAGE EVER SAYS MAS SPORTS EDITOR CLEMSON SMITH MUNIZ THE MAS 1993 HISPANIC ALLSTAR TEAM INCLUDES THE AMERICAN LEAGUE BATTING CHAMPION EDGAR MARTINEZ OF THE SEATTLE MARINERS AND HOMERUN LEADER JUAN GONZALES OF THE TEXAS RANGERS YOU NEVER HAD THIS MANY LATINOS THIS GOOD IN BASEBALL MR SMITH SAYS THE FLORIDA MARLINS' DEBUT THIS YEAR IN MIAMI AS A NATIONAL LEAGUE EXPANSION TEAM MAY DOVETAIL WITH BROADER EFFORTS TO REACH HISPANICS THE OWNERS PLAN TO MARKET THE MARLINS AS LATIN AMERICA'S TEAM THE MARKETING BLITZ FOR BLACK HISTORY MONTH THIS YEAR HAS ADDED MORE PRODUCT PROMOTIONS TO THE USUAL SHOW OF CORPORATE SUPPORT FOR BLACK CAUSES COCACOLA SINCE 1990 HAS SUPPORTED BLACK EXPO USA A BIG COMMUNITY AND TRADE FAIR HELD ANNUALLY IN SEVERAL CITIES IN RETURN FOR FAVORABLE ASSOCIATION WITH THE EVENT BUT COKE BOTTLERS WANTED A MORE DIRECT TIEIN SO THIS MONTH IN ATLANTA TO PROMOTE THE EXPO AND BLACK HISTORY MONTH COKE IS OFFERING A 1 DISCOUNT OFF THE EVENT'S 6 ADMISSION FEE WITH THE PURCHASE OF A TWOLITER BOTTLE IT HELPS PEOPLE PURCHASE THE PRODUCT AND IT ADVERTISES BLACK EXPO SO IT'S A WINWIN SITUATION SAYS BLACK EXPO PRESIDENT JERRY ROEBUCK COKE PLANS TO EXTEND THE OFFER IN OTHER CITIES AS THE EXPO MOVES AROUND THE COUNTRY MAYBELLINE IS PUSHING ITS SHADES OF YOU COSMETICS LINE FOR BLACK WOMEN WITH A DOLLAROFF COUPON PROMOTION THIS MONTH FOR EACH COUPON REDEEMED MAYBELLINE IS DONATING 25 CENTS TO A LITERACY PROGRAM OF THE NATIONAL COALITION OF 100 BLACK WOMEN THE PROGRAM KICKED OFF BY A 25000 DONATION FROM MAYBELLINE LAST YEAR HELPS SINGLE MOTHERS AND TEENAGE GIRLS AT RISK OF PREGNANCY OR DROPPING OUT IN NEW YORK QUAKER OATS IS DISTRIBUTING TENS OF THOUSANDS OF HOTCEREAL SAMPLES IN NEIGHBORHOODS WITH HIGH CONCENTRATIONS OF AFRICANAMERICANS AS PART OF A FEBRUARY NUTRITIONAWARENESS PROGRAM THIS ASSOCIATES QUAKER'S PRODUCT WITH THE CONSUMER'S NEED FOR NUTRITIONAL PRODUCTS SAYS MARKETER J RODNEY LAWRENCE OF SEGMENTED MARKETING SERVICES A WINSTONSALEM NC FIRM THAT WORKS WITH QUAKER QUAKER IS ALSO FUNDING FREE HEALTHSCREENING CLINICS IN BLACK CHURCHES THIS MONTH AND DONATING BLOODPRESSURE MACHINES FOR THE CHURCHES' YEARROUND HEALTH PROGRAMS LOS ANGELES'S KLAXFM VOWED IN AUGUST TO BEAT THE FIVE RIVAL HISPANICORIENTED STATIONS IN THE CITY IN THE FOURTH QUARTER KLAX SURPRISED THE RADIO INDUSTRY BY TOPPING ALL AREA STATIONS BECOMING THE FIRST SPANISHLANGUAGE STATION TO LEAD A MAJOR MARKET PEOPLE WERE FLABBERGASTED SAYS HOLMES STONER PRESIDENT OF ARTESA A LOS ANGELES MEDIA BROKER THEY WEREN'T READY FOR A SPANISH STATION TO TAKE OVER IN LA KLAX CALLED KSKQ UNTIL AUGUST BEGAN WITH 2 OF THE TOTAL MARKET AFTER CHANGING ITS CALL LETTERS IT REPLACED ITS MORE GENERAL SPANISH MUSIC FORMAT WITH MEXICAN RANCHERO MUSIC SIMILAR TO US COUNTRY MUSIC RANCHERO IS POPULAR IN THE PARTS OF MEXICO THAT SEND THE MOST IMMIGRANTS TO CALIFORNIA KLAX ALSO HIRED SOME TOP TALENT AWAY FROM HISPANIC COMPETITORS AND BEGAN AGGRESSIVE PROMOTIONS AND BILLBOARD ADVERTISING PREVIOUSLY UNKNOWN IN THE SPANISHLANGUAGE MARKET MR STONER SAYS SPANISH STATIONS IN SOME OTHER AREAS COULD USE THE SAME KIND OF BROAD AGGRESSIVE MARKETING TACTICS TO INCREASE THEIR MARKET SHARE THE STATION'S 53 SHARE OF THE MARKET IN THE FOURTH QUARTER PROMPTED ROCK STATION KLSX TO CHALLENGE THE RATING NUMBERS COMPILED BY ARBITRON KLSX FELL FROM NO 4 TO NO 9 CAUSING ITS POPULAR SHOCK JOCK HOWARD STERN TO BLAME CALLLETTER TYPING ERRORS A BEING NEXT TO S ON KEYBOARDS BUT ARBITRON DEFENDS THE NUMBERS AND SAYS THEY SHOULDN'T BE A BIG SURPRISE THE LOS ANGELES MARKET IS ONETHIRD HISPANIC BUT ONLY SIX OF THE 46 AREA STATIONS COMPETE FOR THAT PART OF THE AUDIENCE THE OTHER 40 STATIONS ARE GOING FOR TWOTHIRDS OF THE MARKET SAYS ARBITRON SPOKESMAN THOMAS MOCARSKY AND TO BE BLUNT THEY WEREN'T PAYING ATTENTION ALLSTATE INSURANCE BEGAN DIVERSIFYING THE GOOD HANDS IN ITS TV SPOTS IN 1991 BUT THE CHANGE HAS BECOME MORE NOTICEABLE SINCE THE SEARS ROEBUCK UNIT SHOT ADS WITH DARKER BLACK HANDS LAST FALL ALLSTATE SAYS ITS HISPANIC HANDS STILL DON'T STAND OUT WELL BLACK MUSICAL ACTS SCORED A FIRST IN JANUARY FILLING THE ENTIRE TOP 10 IN BILLBOARD'S HOT SINGLES LIST FOR TWO CONSECUTIVE WEEKS BILLBOARD EDITOR TIMOTHY WHITE SAYS THE RECORDS PURCHASED MOSTLY BY WHITES ENCOMPASS A RANGE OF MUSICAL STYLES IT'S A REFLECTION OF OUR NATIONAL CULTURE HE SAYS THE US ISN'T SO MUCH OF A WHITE COUNTRY ANYMORE AND IT'S NEVER GOING TO BE AGAIN 9302240136 930224 THIS NOFRILLS AT PRESENT HOTEL WON'T LEAVE A LIGHT ON FOR YOU BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TALK ABOUT PERSONALIZED SERVICE TELEPHONE CALLS TO THE RITZCARLTON HONG KONG THE BRITISH COLONY'S FANCIEST NEW HOTEL ARE ANSWERED BY NONE OTHER THAN THE GENERAL MANAGER HIMSELF ERIC WALDBURGER A SWISS HOTELIER WITH 27 YEARS IN THE BUSINESS SAYS THE PHONE RINGS DAILY WITH REQUESTS FOR ROOM BOOKINGS AND BANQUET RESERVATIONS MR WALDBURGER WHO HAS PRESIDED OVER THE 216ROOM LUXURY HOTEL SINCE CONSTRUCTION BEGAN IS HAPPY TO ANSWER THE PHONE THOUGH HE HAS TO TURN DOWN ALL CALLERS AND SOMETIMES HE SWABS TOILETS VACUUMS CARPETS AND REARRANGES THE HOTEL'S ORNATE EUROPEANSTYLE FURNISHINGS I EVEN CLEANED THE POOL HE SAYS MR WALDBURGER'S RATHER NONMANAGERIAL TASKS AREN'T HIS BY CHOICE THE RITZCARLTON'S CURRENT STAFFTOGUEST RATIO IS 3 TO 0 THAT'S THREE EMPLOYEES AND NO CUSTOMERS NO ONE HAS EVER CHECKED INTO ONE OF ITS STANDARD ROOMS AT 2250 HONG KONG DOLLARS US291 A NIGHT MUCH LESS THE HK18000 PRESIDENTIAL SUITE READY TO OPEN SINCE LAST AUGUST THE RITZCARLTON IS CLOSED BECAUSE ITS JAPANESE OWNER A REALESTATE AND GOLFCLUB MEMBERSHIP CONCERN CALLED GGS IS IN FINANCIAL DIFFICULTIES THE HOTEL ITSELF IS IN RECEIVERSHIP AND NO BUYER HAS EMERGED SO FOR NOW AT LEAST THE RITZCARLTON IS A GHOSTLY PLACE CARVEDWOOD SIDEBOARDS THAT DECORATE THE DIM CORRIDORS ARE SWATHED IN WHITE SHEETS THE CRYSTAL CHANDELIERS ARE DARK THE HEAVY DRAPES PULLED SHUT GIANT FRAMED MIRRORS REFLECT SILENT LOUNGES FULL OF OVERSTUFFED CHAIRS WHILE FULLY FURNISHED RESTAURANTS ARE LOCKED WHEN MR WALDBURGER ROAMS HIS EMPIRE HE FUMBLES IN THE DARK TO FIND THE LIGHT SWITCHES AND PROPS OPEN DOORS WITH PIECES OF WOOD THE ONLY OTHER SOULS AROUND ARE A FEW PLASTERERS AND SOME SECURITY GUARDS ATLANTABASED RITZCARLTON HOTEL CO SAYS ITS MANAGEMENT CONTRACT WITH A GGS UNIT REMAINS IN FORCE THE COMPANY CURRENTLY MANAGES 27 UPSCALE HOTELS MOSTLY IN THE US SAYS RITZCARLTON HOTEL'S SPOKESWOMAN WE'RE WAITING FOR THE OWNERSHIP SITUATION TO BE RESOLVED SHE ADDS THAT THE RITZCARLTON NAME MIGHT ATTRACT CERTAIN BUYERS AS FOR WHEN THE RITZCARLTON HONG KONG WILL FINALLY BE ALLOWED TO OPEN THE CHANCES IN THE NEAR FUTURE ARE VERY GOOD SAYS MR WALDBURGER I WOULDN'T BE HERE IF I WASN'T VERY HOPEFUL AFTER COMING THIS FAR WHY TAKE A HIKE 9302240135 930224 WHO'S NEWS APPLE COMPUTER INC APPLE COMPUTER INC CUPERTINO CALIF JOHN ROLLWAGEN RESIGNED FROM THE BOARD OF THIS COMPUTER COMPANY TO ACCEPT A NOMINATION BY THE CLINTON ADMINISTRATION TO BECOME US DEPUTY SECRETARY OF COMMERCE THE COMPANY SAID MR ROLLWAGEN WAS ALSO CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUPERCOMPUTER MAKER CRAY RESEARCH INC BEFORE RESIGNING TO TAKE THE GOVERNMENT POST APPLE SAID MR ROLLWAGEN WOULD BE REPLACED LATER 9302240134 930224 WHO'S NEWS ARTHUR J GALLAGHER & CO ARTHUR J GALLAGHER & CO ITASCA ILL WALTER F MCCLURE VICE PRESIDENT WAS NAMED TO THE ADDITIONAL POSITION OF CHAIRMAN OF A BROKERAGE SERVICES UNIT THAT IS BEING FORMED FROM THIS INSURANCE CONCERN'S RETAIL BROKERAGE BUSINESS MR MCCLURE 59 YEARS OLD HAS HEADED THE COMPANY'S BROKERAGE OPERATIONS SINCE 1979 GARY M VAN DER VOORT 47 MANAGER OF THE RETAIL BROKERAGE NETWORK'S EASTERN REGION WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW DIVISION 9302240133 930224 WHO'S NEWS KEYCORP KEYCORP ALBANY NY THIS BANK HOLDING COMPANY NAMED TWO NEW DIRECTORS INCREASING THE BOARD TO 18 THE NEW DIRECTORS ARE JOHN C DIMMER 64 YEARS OLD PRESIDENT OF FIRS MANAGEMENT CORP TACOMA WASH AND CHARLES R HOGAN 55 OWNER OF PUGET SOUND MARKETING CO PUYALLUP WASH BOTH HAD BEEN ON THE BOARD OF RECENTLY ACQUIRED PUGET SOUND BANCORP 9302240132 930205 THE AMERICAS CANADA'S CRITICAL MALAISE OF THE SPIRIT BY J DUNCAN EDMONDS OTTAWA TODAY'S MEETING WITH PRESIDENT CLINTON PROBABLY COMES AS A WELCOME BREAK FOR CANADIAN PRIME MINISTER BRIAN MULRONEY WHOSE OWN COUNTRY SEEMS ALMOST PARALYZED WITH A DEEPSEATED SENSE OF MALAISE MOST COMMENTATORS BLAME THIS ON SOME COMBINATION OF THE LAGGING ECONOMY AND THE INEPTNESS OF THE POLITICIANS WHILE THIS VIEW MAY BE PARTIALLY CORRECT IT IS TOO SUPERFICIAL CANADA'S CRISIS OF THE SPIRIT IS MUCH MORE DEEPLY ROOTED THE NATION'S POLITICAL TRADITION HAS BEEN DOMINATED BY TWO FUNDAMENTAL ISSUES HOW TO SATISFY QUEBEC AND HOW TO MANAGE THE OFTEN BENIGN BUT ALWAYS THREATENING DOMINANCE OF THE US BOTH OF THESE CENTRAL CHALLENGES TO CANADIAN PUBLIC POLICY HAVE SPUN OUT OF CONTROL OF THE COUNTRY'S POLITICAL LEADERSHIP THE QUEBEC ISSUE IS THE MORE SERIOUS AND HAS MOVED INTO WHAT VERY PROBABLY WILL BE ITS FINAL CRISIS WITH THE DECISIVE DEFEAT OF A CONSTITUTIONAL REFERENDUM ON THE SUBJECT LAST FALL ENGLISH CANADA HAS PUT FURTHER CONSTITUTIONAL DISCUSSION IN THE DEEP FREEZE AND IS TOTALLY PREOCCUPIED WITH THE ECONOMY IN QUEBEC HOWEVER THE SITUATION IS VERY DIFFERENT AND HIGHLY VOLATILE THERE THE SOVEREIGNIST FORCES HAVE DEVELOPED A COMPREHENSIVE STRATEGY COMPLETE WITH A JUNE 1995 TARGET DATE FOR INDEPENDENCE THE BATTLE WILL BE PLAYED OUT IN THREE ELECTORAL TESTS OVER THE NEXT TWO YEARS THE FIRST ENCOUNTER WILL COME IN THE FEDERAL ELECTION THAT MUST BE HELD THIS YEAR THE BLOC QUEBECOIS A GROUP OF NINE QUEBEC MEMBERS IN THE FEDERAL PARLIAMENT DEDICATED TO THE BREAKUP OF CANADA PLANS TO RUN A FULL SLATE OF CANDIDATES IN QUEBEC LEAD BY PARLIAMENTARIAN LUCIEN BOUCHARD THE GROUP WILL RECEIVE THE FULL SUPPORT OF THE PARTI QUEBECOIS THE PROVINCIAL PROSOVEREIGNTY OPPOSITION PARTY LED BY JACQUES PARIZEAU MR BOUCHARD IRONICALLY A FORMER FRIEND AND PROTEGE OF THE PRIME MINISTER QUIT MR MULRONEY'S CABINET IN DISGUST SEVERAL YEARS AGO AND IS NOW BY FAR THE MOST POPULAR POLITICIAN IN QUEBEC ACCORDING TO MANY OF THE POLLS THE BLOC QUEBECOIS IS POISED TO WIN AS MANY AS HALF OF QUEBEC'S 75 SEATS IN THE FEDERAL PARLIAMENT THE MOMENTUM OF THIS VICTORY SHOULD CARRY OVER INTO THE SECOND ELECTORAL TEST WHICH WILL BE A PROVINCIAL ELECTION IN QUEBEC SOMETIME IN THE NEXT 20 MONTHS HERE THE BASIC ISSUE WILL BE INDEPENDENCE THE PARTI QUEBECOIS IS IN A STRONG POSITION TO WIN THIS ELECTION AS IT DID IN 1976 THE UNCERTAINTY SURROUNDING THE HEALTH OF QUEBEC'S PREMIER ROBERT BOURASSA IS NOT A HAPPY DEVELOPMENT FOR THE FEDERALIST FORCES WHILE ONE MIGHT HOPE OTHERWISE THE PROBABILITY NOW IS FOR A SUBSTANTIAL SEPARATIST VICTORY IF THIS INDEED COMES TO PASS THE PARTI QUEBECOIS LIKELY WILL MOVE QUICKLY AND DECISIVELY TO THE FINAL ELECTORAL BATTLE BY HOLDING A REFERENDUM ON A SIMPLE BASIC QUESTION OF CANADA OUI OR NON IF THE FIRST TWO BATTLES GO AS CURRENTLY PREDICTED THE REFERENDUM ALMOST ASSUREDLY WILL BE WON BY THE SEPARATISTS THEN WILL FOLLOW TOUGH AND QUITE POSSIBLY RANCOROUS NEGOTIATIONS OVER THE TERMS AND CONDITIONS OF SOME SORT OF SEPARATION WHATEVER ITS OUTCOME ENGLISHCANADIAN ATTITUDES TOWARD QUEBEC ARE CHANGING AND THERE IS LESS SUPPORT ACROSS THE COUNTRY FOR FURTHER ACCOMMODATION AND A SIGNIFICANT WILLINGNESS IN THIS PERIOD OF EASY DIVORCE TO LET QUEBEC GO CANADA'S MALAISE WILL REMAIN UNTIL THE MATTER HAS BEEN RESOLVED THE SITUATION WITH THE US IS VERY DIFFERENT BUT EQUALLY CRITICAL AS THE NEW CLINTON ADMINISTRATION TAKES CHARGE WITH A SENSE OF HOPE AND EXPECTATION FOR A REBOUNDING ECONOMY THE CANADIAN ECONOMY IS LAGGING BEHIND AND THE PRIME MINISTER IS EXCEEDINGLY UNPOPULAR THE MOST RECENT UNEMPLOYMENT FIGURES SHOW THE JOBLESS RATE IN CANADA AT 115 AS COMPARED WITH 73 IN THE US CANADIANS NOW FACE A MAJOR DEBATE OVER RATIFICATION OF NAFTA WHICH IS SHAPING UP AS A RERUN OF THE DIVISIVE CONTEST OF 1988 OVER THE FREE TRADE AGREEMENT WITH THE US DURING THE LAST EMOTIONAL AND STILL UNRESOLVED DEBATE CANADIAN OPINION POLLS WERE ABOUT EVEN REGARDING THE MERITS AND POLITICAL IMPLICATIONS OF THE ARRANGEMENT TODAY AFTER SOME FOUR YEARS OF RECESSION AND HEAVY JOB LOSSES THE POLLS HAVE SWUNG NEGATIVE ON THE NAFTA DEAL ONE GALLUP POLL SHOWED 56 OPPOSED 26 IN FAVOR AND THE REST UNCERTAIN TO A MAJORITY OF CANADIANS THE ECONOMICS OF THE FREE TRADE DEAL ARE DUBIOUS WHILE THE POLITICAL AND PSYCHOLOGICAL ASPECTS OF A MORE CLOSELY INTEGRATED RELATIONSHIP WITH THE US TEAR AT THE VERY ESSENCE OF THE CANADIAN SOUL THE MANIFEST REALITY THAT CANADA IS NOW ESSENTIALLY INTEGRATED ECONOMICALLY AND LARGELY CULTURALLY WITH THE US IS NOT A SITUATION THAT CANADIANS ARE HAPPY TO ACCEPT CANADIANS WANT TO PRESERVE THEIR SOCIAL SECURITY SYSTEM PARTICULARLY THE FREE HEALTH CARE THE HUNDREDS OF THOUSANDS OF CANADIANS WHO SPEND MUCH OF THE WINTER IN THE SOUTHERN US ARE TERRIFIED OF THE AMERICAN HEALTH CARE SYSTEM AND MAINTAINING ACCESS TO THE CANADIAN SYSTEM IS A CONSTANT CONCERN CANADIANS ARE ALSO DISTURBED BY THE VIOLENCE AND CRIME IN AMERICA AND WANT TO PRESERVE WHAT THEY FEEL IS A KINDER GENTLER SOCIETY AS A RESULT CANADA EXHIBITS A SORT OF NATIONAL SCHIZOPHRENIA WHENEVER THE SPECTER OF CLOSER TIES WITH THE US IS RAISED WHAT COULD BE A GRAND VISION OF A NEW NORTH AMERICA TRADING BLOC HEADING TOWARD SOME SORT OF CLOSER POLITICAL ARRANGEMENTS WITH THE US AND MEXICO WILL NOT BE CHAMPIONED IN CANADA RATHER WE WILL WITNESS MUCH NEGATIVISM AND AN INABILITY TO ENVISAGE THE FUTURE WITH A SELFCONFIDENT ATTITUDE OF COURSE WITH PRIME MINISTER MULRONEY'S ENTHUSIASTIC SUPPORT ONE MAY GUARDEDLY PREDICT NAFTA RATIFICATION SINCE CANADA OPERATES UNDER A SYSTEM OF A PARLIAMENTARY MAJORITY BUT IN THE ABSENCE OF THE WIDER NOBLER VISION MUCH OF THE BENEFITS WILL NOT BE APPARENT TO CANADIANS AND THE MALAISE WILL ONLY DEEPEN ALL OF THIS LEADS TO A RATHER GLOOMY PROGNOSIS FOR CANADA OVER THE NEXT FEW YEARS THE LONGERTERM VIEW MAY BE MUCH MORE POSITIVE QUEBEC WILL VERY LIKELY ACHIEVE A FORM OF GREATER INDEPENDENCE AND ONCE THE NECESSARY ADJUSTMENTS HAVE BEEN MADE THE BENEFITS OF A CLOSER AND MORE HARMONIOUS NORTH AMERICAN RELATIONSHIP ONE THAT DOES NOT THREATEN BUT RATHER STRENGTHENS CANADA WILL BE MUCH MORE WIDELY EMBRACED BY CANADIANS MR EDMONDS AN OTTAWABASED CONSULTANT WAS A VISITING ASSOCIATE WITH THE NEW YORKBASED AMERICAS SOCIETY AND A FORMER CHAIRMAN OF CANADIAN STUDIES AT YALE UNIVERSITY SEE RELATED LETTER LETTERS TO THE EDITOR CANADA LOOKS GOOD EVEN WITH MALAISE WSJ FEB 23 1993 9302050125 9302240131 930224 WHO'S NEWS GRUMMAN CORP GRUMMAN CORP BETHPAGE NY EDDIE N WILLIAMS 60 YEARS OLD WAS ELECTED A DIRECTOR SUCCEEDING ELLIS L PHILLIPS JR 71 WHO RETIRES AT THE END OF FEBRUARY MR WILLIAMS IS PRESIDENT OF THE JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES IN WASHINGTON GRUMMAN IS AN AEROSPACE ELECTRONICS SYSTEMS INFORMATION SERVICES AND SPECIAL PURPOSE VEHICLES CONCERN 9302240130 930224 FIRST FIDELITY PLANS 66 MILLION PURCHASE OF VILLAGE FINANCIAL LAWRENCEVILLE NJ FIRST FIDELITY BANCORP EXPANDING ITS PRESENCE IN NEW YORK'S AFFLUENT WESTCHESTER COUNTY SAID IT WILL BUY VILLAGE FINANCIAL SERVICES LTD SPARKING A 53 LEAP OF THE PORT CHESTER NY BANK HOLDING COMPANY'S SHARES FIRST FIDELITY SAID IT WILL PAY ABOUT 66 MILLION IN CASH AND STOCK FOR VILLAGE FINANCIAL WITH SHAREHOLDERS RECEIVING THE EQUIVALENT OF 2835 FOR EACH SHARE OF VILLAGE FINANCIAL COMMON STOCK ABOUT 60 OR 1701 WILL BE PAID IN CASH AND 40 OR 1134 WILL BE PAID IN NEWLY ISSUED FIRST FIDELITY COMMON SHARES THE PRICE REPRESENTS ABOUT 123 OF VILLAGE FINANCIAL'S BOOK VALUE OF 2301 A SHARE AS OF DEC 31 SHARES OF VILLAGE FINANCIAL LEAPED 9 TO 26 IN OVERTHECOUNTER TRADING LATE YESTERDAY WHILE FIRST FIDELITY'S STOCK EASED 75 CENTS TO 4675 A SHARE IN NEW YORK STOCK EXCHANGE TRADING THE PURCHASE EXPECTED TO BE COMPLETED IN THE THIRD QUARTER FOLLOWS FIRST FIDELITY'S ENTRY INTO WESTCHESTER COUNTY IN JUNE WITH THE ACQUISITION OF FIVE OFFICES OF AMERICAN SAVINGS BANK OF WHITE PLAINS NY FROM THE FEDERAL DEPOSIT INSURANCE CO WITH 813 MILLION IN ASSETS VILLAGE FINANCIAL HAS NINE OFFICES IN THE AREA FIRST FIDELITY HAS 31 BILLION IN ASSETS AND OPERATES MORE THAN 550 OFFICES PRIMARILY IN THE MIDDLE ATLANTIC STATES FIRST FIDELITY SAID THE TRANSACTION WILL BE NONDILUTIVE TO ITS PERSHARE EARNINGS BY THE END OF THE YEAR THE PURCHASE WILL BE FUNDED FROM CASH RESERVES AND THROUGH THE EXERCISE OF PREVIOUSLY ISSUED OPTIONS BY BANCO DE SANTANDER SA OF SPAIN WHOSE STAKE IN FIRST FIDELITY WILL INCREASE TO 169 FROM 161 AFTER THE OPTIONS ARE EXERCISED BANCO DE SANTANDER FIRST BOUGHT A 13 STAKE IN THE NEW JERSEY BANK IN 1991 WHEN IT RECEIVED WARRANTS ALLOWING IT TO RAISE ITS HOLDINGS TO 23 OVER FOUR YEARS 9302240129 930224 NOTABLE & QUOTABLE ALAN WOLFE A PROFESSOR OF SOCIOLOGY AND POLITICAL SCIENCE AT THE NEW SCHOOL FOR SOCIAL RESEARCH IN NEW YORK WRITING IN THE FEB 8 ISSUE OF THE NEW REPUBLIC NO ONE CAN DOUBT THAT THE CONDITIONS OF PUBLIC SCHOOLS IN AMERICA'S WORSTOFF NEIGHBORHOODS ARE SCANDALOUS THOSE WHO WITNESS DAILY WHAT FAMILY DISINTEGRATION POVERTY AND VIOLENCE CAN DO TO SMALL CHILDREN CAN HARDLY BE BLAMED FOR WANTING THE SCHOOLS TO DO WHATEVER THEY CAN TO HELP BUT PUBLIC SCHOOLS ARE PUBLIC AND SO THERE IS ALWAYS THE TEMPTATION TO APPLY A PROGRAM THAT MAY HELP AN INNERCITY SCHOOL DIRECTLY TO SCHOOLS IN OTHER NEIGHBORHOODS THAT DO NOT WANT THEM THE INSISTENCE THAT SCHOOLS PROVIDE SOCIAL WORK RATHER THAN EDUCATION MEANS THAT THE YOUNG PEOPLE WHO ARE HELPED ARE MORE THAN MATCHED BY OTHERS WHO ARE DEPRIVED OF THE TEACHING OF BASICS THAT THEY NEED AND WANT 9302240128 930224 GREENSPAN SEES STRONGER FOURTHQUARTER GDP RATE WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THAT FOURTHQUARTER ECONOMIC GROWTH WAS PROBABLY STRONGER THAN THE 38 ANNUAL RATE ESTIMATED LAST MONTH THE FOURTH QUARTER I ASSUME WILL BE REVISED UP MR GREENSPAN TOLD THE HOUSE BANKING COMMITTEE YESTERDAY SEVERAL PRIVATE ECONOMISTS HAVE ALSO REVISED UP THEIR ESTIMATES OF FOURTHQUARTER GROWTH IN THE NATION'S GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US THEIR OPTIMISM HINGES MAINLY ON STRONGER CONSUMER SPENDING NET EXPORTS AND INVENTORIES ROBERT WESCOTT HEAD OF US ECONOMIC FORECASTING FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA SAID THE ECONOMY PROBABLY GREW AT A 4 TO 45 PACE IN THE FOURTH QUARTER THAT WOULD BE THE STRONGEST GROWTH SINCE THE SECOND QUARTER OF 1988 ON FRIDAY THE COMMERCE DEPARTMENT WILL RELEASE ITS SECOND ESTIMATE OF ECONOMIC ACTIVITY IN THE FOURTH QUARTER MR GREENSPAN SAID THAT SO FAR THIS YEAR THE ECONOMY IS MOST LIKELY RUNNING AT A SOMEWHAT SLOWER PACE THAN AT THE END OF 1992 9302240127 930224 LETTERS TO THE EDITOR CANADA LOOKS GOOD EVEN WITH MALAISE NOTHING CONTRIBUTES MORE TO A CANADIAN'S DEEPSEATED SENSE OF MALAISE THAN HIS CONTEMPLATION OF SIX TO EIGHT MORE WEEKS OF WINTER CLEARLY I DON'T KNOW HOW MUCH THIS AFFECTED J DUNCAN EDMONDS'S FEB 5 AMERICAS COLUMN CANADA'S CRITICAL MALAISE OF THE SPIRIT OPED PAGE BUT KNOWING HIM AS I HAVE FOR NEARLY 30 YEARS I SUSPECT IT HAD SOME IMPACT FRANKLY THINGS AREN'T THAT BAD THE LATEST POLLS FROM QUEBEC FOR INSTANCE DO NOT APPEAR TO SUPPORT MR EDMONDS'S ASSUMPTIONS CONCERNING THE BLOC QUEBECOIS MOREOVER THE LATEST UNEMPLOYMENT FIGURES SHOW AN IMPORTANT DOWNWARD TREND MR EDMONDS MENTIONED CANADIAN FONDNESS FOR THE SOUTHERN US AT THIS TIME OF YEAR PERHAPS HE SHOULD TREAT HIMSELF TO A LITTLE TIME IN THE SUN TO REACQUIRE SOME OF HIS MORE CHARACTERISTIC PERSPECTIVE WHEN OBSERVED FROM OUTSIDE CANADA STILL LOOKS PRETTY GOOD WHEN COMPARED WITH THE NEWS FROM SO MANY OTHER COUNTRIES 9302240126 930224 NEW YORK MERC CHAIRMAN WILL RUN FOR REELECTION NEW YORK NEW YORK MERCANTILE EXCHANGE CHAIRMAN Z LOU GUTTMAN SAID HE WILL RUN FOR REELECTION AS A PETITION CANDIDATE IN THE MARCH 16 BALLOT MR GUTTMAN CHAIRMAN SINCE 1988 WILL FACE DANIEL RAPPAPORT THE MERC'S CURRENT VICECHAIRMAN WHO RECENTLY WAS SELECTED TO RUN FOR CHAIRMAN BY THE EXCHANGE'S NOMINATING COMMITTEE LAST WEEK MR GUTTMAN DECLINED TO RESIGN AT THE REQUEST OF THE MERC BOARD IN THE WAKE OF FEDERAL CHARGES AGAINST HIM THE MERC BOARD SUBSEQUENTLY DECIDED NOT TO ATTEMPT TO SUSPEND MR GUTTMAN A MOVE THAT WOULD HAVE REQUIRED APPROVAL BY TWOTHIRDS OF THE VOTING MEMBERS MR GUTTMAN HAS DECLINED TO COMMENT ON THE CHARGES BUT HIS ATTORNEY SAID THE COMPLAINT IS UNFOUNDED AND HIS CLIENT WILL BE FULLY VINDICATED 9302240125 930224 MILKEN REVEALS DIAGNOSIS OF CANCER OF THE PROSTATE NEW YORK MICHAEL MILKEN FORMER HEAD OF THE JUNKBOND DEPARTMENT OF DREXEL BURNHAM LAMBERT INC SAID IN A STATEMENT THAT HE HAS PROSTATE CANCER WHICH WAS DIAGNOSED SHORTLY AFTER HE LEFT PRISON LAST MONTH MR MILKEN WHO WAS RELEASED FROM PRISON TO A HALFWAY HOUSE IN DOWNTOWN LOS ANGELES HAS ONE WEEK TO GO BEFORE HE COMPLETES HIS REDUCED SENTENCE OF TWO YEARS MR MILKEN WAS SENTENCED TO 10 YEARS AFTER HE PLEADED GUILTY IN 1990 TO SIX SECURITIESRELATED FELONIES BUT THAT SENTENCE WAS REDUCED LAST YEAR BECAUSE OF HIS COOPERATION WITH PROSECUTORS AFTER COMPLETING HIS TWOYEAR SENTENCE MR MILKEN STILL FACES THREE YEARS OF FULLTIME COMMUNITY SERVICE WHILE ON PROBATION THE OFFICE OF US DISTRICT COURT JUDGE KIMBA WOOD WHO SENTENCED MR MILKEN SAID THE JUDGE AND THE US PROBATION OFFICE WILL CONSIDER POSSIBLE ALTERNATIVE COMMUNITYSERVICE PROGRAMS IN LIGHT OF MR MILKEN'S ILLNESS A SPOKESWOMAN FOR MR MILKEN SAID HE HOPES TO SERVE IN EDUCATION MR MILKEN SAID THE CANCER WAS DIAGNOSED IN ITS EARLY STAGES UROLOGIST DR STUART HOLDEN SAID THAT MR MILKEN WILL UNDERGO AGGRESSIVE THERAPY AND THAT HE EXPECTS COMPLETE RECOVERY 9302240124 930224 SEARS'S ALLSTATE SEEKS RISE IN FLORIDA HOMEOWNER RATE NEW YORK ALLSTATE INSURANCE CO HAS APPROACHED THE STATE OF FLORIDA ABOUT RAISING RATES ON HOMEOWNERS INSURANCE AS MUCH AS 40 OTHER COMPANIES HAVE RAISED RATES IN THE AFTERMATH OF HURRICANE ANDREW BUT NO COMPANY HAS SOUGHT AN INCREASE ANYWHERE NEAR THE MAGNITUDE DISCUSSED BY ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO ALLSTATE WHICH PAID 173 BILLION IN CLAIMS ON THE STORM ALSO IS TALKING ABOUT REDUCING ITS MARKET SHARE IN THE STATE BY A QUARTER WE'VE GOT TO GET READY FOR A STORM THAT'S POSSIBLY WORSE THAN ANDREW SAID A SPOKESMAN STATE OFFICIALS CONFIRMED THE DISCUSSIONS UNDER FLORIDA INSURANCE LAW INSURANCE COMPANIES CAN PLACE RATE INCREASES INTO EFFECT SUBJECT TO LATER STATE REVIEW IF IT OBJECTS THE STATE CAN SEEK A ROLLBACK OF THE INCREASES CERTAINLY IT SETS OFF AN ALARM SAID A SPOKESMAN FOR THE INSURANCE DEPARTMENT SHE SAID THE STATE WILL REVIEW ALLSTATE'S INCREASE WHEN THE COMPANY FORMALLY FILES THE SPOKESMAN SAID THE STATE ALSO IS CONCERNED ABOUT FLYBYNIGHT COMPANIES GRABBING MARKET SHARE WITH UNREASONABLY LOW RATES COMPANIES THAT CHARGE TOO LITTLE MIGHT NOT HAVE ENOUGH MONEY TO PAY CLAIMS WHEN THEY COME DUE 9302240123 930224 LETTERS TO THE EDITOR OILIMPORT FEE MEANS SURVIVAL NOT PROFIT AS CHAIRMAN OF THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA WHICH REPRESENTS THE NATION'S DOMESTIC OIL AND NATURAL GAS PRODUCERS I ADDRESS THE STATEMENT IN YOUR FEB 1 PAGEONE ARTICLE MARKET FORCES TRADE ISSUES CROWD IN ON CLINTON AS INDUSTRIES LINE UP FOR PROTECTION THAT AN OILIMPORT FEE WOULD INCREASE PROFITS FOR THE US OIL PATCH AN OILIMPORT FEE IS NOT ABOUT PROFITS IT'S ABOUT SURVIVAL OVER THE PAST 10 YEARS THE DOMESTIC OIL AND GAS INDUSTRY HAS LOST 450000 JOBS MORE THAN THE AUTO STEEL AND TEXTILE INDUSTRIES COMBINED THOUSANDS OF ENERGY COMPANIES HAVE GONE OUT OF BUSINESS AND THE RIG COUNT IS AT AN ALLTIME LOW THE US IMPORTS NEARLY HALF THE OIL IT CONSUMES EVERY DAY THE DEPARTMENT OF ENERGY PROJECTS THAT OIL IMPORTS WILL MORE THAN DOUBLE BY 2010 IMPORTED OIL ACCOUNTS FOR MORE THAN HALF OUR BALANCE OF TRADE DEFICIT AS LONG AS FOREIGN CARTELS CONTROL THE PRICE OF CRUDE THEY WILL HAVE THE POWER TO DRIVE AMERICAN PRODUCERS OUT OF BUSINESS AND KEEP A STRANGLEHOLD ON THE LIFEBLOOD OF OUR ECONOMY TWO YEARS AGO US TROOPS FOUGHT AND DIED TO PROTECT OUR SUPPLY OF CHEAP FOREIGN OIL AND THE SITUATION IN THE PERSIAN GULF IS JUST AS VOLATILE TODAY IF THIS ISN'T A MATTER OF NATIONAL SECURITY I DON'T KNOW WHAT IS 9302240122 930224 WHO'S NEWS BURLINGTON RESOURCES INC BURLINGTON RESOURCES INC SEATTLE DONALD CLAYTON RESIGNED BECAUSE OF PERSONAL REASONS AS PRESIDENT AND DIRECTOR OF THIS NATURAL RESOURCES COMPANY AND AS PRESIDENT AND CHIEF EXECUTIVE OF ITS MERIDIAN OIL INC UNIT THE COMPANY SAID MR CLAYTON'S DUTIES HAVE BEEN ASSUMED BY THOMAS O'LEARY BURLINGTON'S CHAIRMAN AND CHIEF EXECUTIVE 9302240121 930201 MARKET FORCES TRADE ISSUES CROWD IN ON CLINTON AS INDUSTRIES LINE UP FOR PROTECTION SOME SAY HE MUST SET POLICY OR FACE PRESSURE TO GRANT RELIEF ON AN AD HOC BASIS NAFTA GATT AND MINIVANS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S VOICE ON TRADE ISSUES RARELY MORE THAN A WHISPER IS IN DANGER OF BEING DROWNED OUT BY SHOUTS FOR PROTECTION ONE INDUSTRY AFTER ANOTHER IS PLEADING OR GETTING SET TO PLEAD FOR GOVERNMENT RELIEF FROM FOREIGN COMPETITION AUTOS STEEL OIL SEMICONDUCTORS OTHERS LIKE THE TEXTILE AND APPAREL INDUSTRIES ARE LINING UP TO BLOCK A QUICK AGREEMENT ON WORLD TRADE TALKS UNIONS AND THE SUGAR LOBBY ARE ZEROING IN ON THE TRADE PACT WITH MEXICO INCREASED TARIFFS WON BY ANY OF THE SUPPLICANTS WOULD PROBABLY BE PASSED ALONG AS PRICE INCREASES FOR CONSUMERS EITHER AS COSTLIER IMPORTED GOODS OR AS HIGHER PRICES ON DOMESTIC PRODUCTS PARTLY INSULATED FROM THE COMPETITION SO IT'S CRUCIAL FOR THE PRESIDENT TO ASSERT CONTROL OVER THE NATION'S TRADE POLICY QUICKLY OR RISK LETTING BIG BUSINESSES AND UNIONS RUN THE SHOW WARNS PAULA STERN FORMER CHAIRWOMAN OF THE INTERNATIONAL TRADE COMMISSION AND A CLINTON CONFIDANTE YOU WANT TO SIGNAL TO EVERYONE INVOLVED THAT YOU HAVE A NATIONAL ECONOMIC STRATEGY SHE SAYS AND YOU WON'T SIMPLY ACCOMMODATE ONE INDUSTRY AT A TIME WITH TRADE RELIEF THE CLINTON ADMINISTRATION COMPLAINS THAT IT HASN'T YET HAD TIME TO SET TRADE POLICY AND THAT ITS ACTIONS AND ATTITUDES ARE BEING MISINTERPRETED ON WEDNESDAY FOR INSTANCE THE COMMERCE DEPARTMENT LEVIED STEEP PRELIMINARY TARIFFS ON STEEL IMPORTS SETTING OFF COMPLAINTS FROM EUROPE AND JAPAN ABOUT YANKEE PROTECTIONISM BUT THE DECISION DIDN'T REPRESENT ANY POLICY DECLARATION MAINTAINS KEVIN SWEENEY THE DEPARTMENT'S SPOKESMAN COMMERCE SECRETARY RON BROWN WHO HAD BEEN ON THE JOB ONLY THREE DAYS HAD LITTLE CHOICE BUT TO APPROVE A STAFF RECOMMENDATION SUPPORTING THE TARIFFS MR SWEENEY SAYS SINCE A DECISION HAD TO BE RELEASED THAT DAY UNDER STATUTORY DEADLINES MOREOVER THE ADMINISTRATION IS RECRUITING A BOOSTER OF LIBERALIZED TRADE RUFUS YERXA FOR THE NO 2 POSITION IN THE TRADE REPRESENTATIVE'S OFFICE SAY TRADE OFFICIALS MR YERXA CURRENTLY REPRESENTS THE US IN TORTUOUS DISCUSSIONS IN GENEVA TO OPEN EUROPEAN AND JAPANESE MARKETS MS STERN SAYS MR CLINTON FIRMLY BELIEVES THAT OPEN MARKETS SPUR WORLD ECONOMIC GROWTH BUT THE PROTECTIONIST MOOD INTENSIFIED IN WASHINGTON LAST WEEK WHEN THE TREASURY ORDERED A REVIEW OF TARIFFS ON MINIVANS AND SPORTUTILITY VEHICLES THE FIRST STEP IN A PROCESS THAT COULD RAISE TARIFFS TENFOLD TO 25 AND ADD THOUSANDS OF DOLLARS TO THE PRICE OF FOREIGN VEHICLES AND PROBABLY DOMESTIC ONES AS WELL MEANWHILE AN EMBOLDENED AUTO INDUSTRY IS ASSEMBLING EVIDENCE TO SUPPORT A SWEEPING TRADE COMPLAINT THAT COULD RESULT IN DUTIES ON ALL JAPANESE PASSENGER CARS TELECOMMUNICATIONS FIRMS ARE ALSO PUSHING FOR ACTION EARLY THIS WEEK US TRADE REPRESENTATIVE MICKEY KANTOR IS EXPECTED TO ORDER SANCTIONS ON EUROPEAN COMPANIES IN RESPONSE TO THE EC'S ADOPTION OF LOCALCONTENT RULES FOR GOVERNMENT PURCHASES OF TELECOMMUNICATIONS AND POWERGENERATION EQUIPMENT US TRADING PARTNERS OFTEN MAINTAIN BARRIERS THAT MAKE IT EASY TO JUSTIFY SUCH CALLS FOR TARIFFS OR QUOTAS US TRADE OFFICIALS COMPLAIN THAT EC PROVISIONS BLOCK SALES BY AMERICAN TELEPHONE & TELEGRAPH CO AND GENERAL ELECTRIC CO IN EUROPE STILL CRITICS CONTEND THAT MUCH OF THE ACTIVITY SWIRLING AROUND THE NEW ADMINISTRATION STEMS FROM PRESIDENT CLINTON'S HANDLING OF THE ISSUE DURING THE PRESIDENTIAL CAMPAIGN AND TRANSITION HE LARGELY DUCKED TRADE QUESTIONS EXCEPT FOR OFFERING A TEPID ENDORSEMENT OF THE NORTH AMERICAN FREE TRADE AGREEMENT THEN HE CHOSE TRADE NOVICES FOR COMMERCE SECRETARY AND US TRADE REPRESENTATIVE AND MADE THE SITUATION EVEN MURKIER BY CREATING A NATIONAL ECONOMIC COUNCIL WITH RESPONSIBILITY FOR REVIEWING TRADE POLICY OPTIONS INTO THE POWER VOID RUSHED INDUSTRY AND LABOR IF YOU LEAVE THE DOOR OPEN TO TRADE RESTRICTIONS YOU INVITE LOTS OF PRESSURE SAYS C FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK THE ADMINISTRATION HASN'T EVEN DISCUSSED IN THE NEW WHITE HOUSE ECONOMIC COUNCIL THE TWO ISSUES MR CLINTON HAS SET AS HIS TOP TRADE PRIORITIES HOW TO REVIVE WORLD TRADE TALKS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT AND WHAT TERMS THE US SHOULD SEEK IN SIDE AGREEMENTS TO THE NORTH AMERICAN AGREEMENT NAFTA TOP ECONOMIC OFFICIALS HAVE BEEN CONCENTRATING ALMOST EXCLUSIVELY ON PLANS TO SPUR GROWTH AND CUT THE DEFICIT THE ECONOMIC SUMMIT IN LITTLE ROCK ARK IN MIDDECEMBER WIDELY PRAISED FOR BRINGING TOGETHER INDUSTRY LABOR AND ACADEMIA GAVE A BIG PUSH TO PROTECTIONIST PRESSURES MR CLINTON REPEATEDLY EXPRESSED SYMPATHY WITH THE PLIGHT OF SUCH OLDLINE INDUSTRIES AS AUTOS STEEL AND AIRLINES AND WAS SHOWN LISTENING ATTENTIVELY TO COMPANY EXECUTIVES BEMOANING THE SITUATION OF THEIR INDUSTRIES VISAVIS FOREIGN RIVALS MANY INDUSTRY OFFICIALS CAME AWAY ENCOURAGED MICHAEL MAIBACH DIRECTOR OF GOVERNMENT AFFAIRS FOR CHIP MAKER INTEL CORP SAYS HE FINDS THE CLINTON APPROACH A REFRESHING CHANGE FROM A PROBUSINESS REPUBLICAN GOVERNMENT THAT TOLD US GOVERNMENT HAD NO ROLE IN BUSINESS AND GET OUT OF OUR OFFICE BUT THE OVERRIDING MESSAGE OF THE CONFERENCE WARNS MR BERGSTEN A PARTICIPANT WAS THAT THE ADMINISTRATION WAS OPEN TO PLEAS FOR HELP THREE WEEKS LATER IT GOT SUCH A PLEA MR CLINTON AND VICE PRESIDENT GORE MET WITH THE CHIEFS OF THE BIG THREE AUTO MAKERS AND THE HEAD OF THE UNITED AUTO WORKERS FORD MOTOR CO CHAIRMAN HAROLD POLING LAID OUT A BROAD PROTECTIONIST AGENDA INCLUDING REQUIRING JAPAN TO REDUCE ITS TRADE SURPLUS 20 A YEAR OVER FIVE YEARS AND RAISING TARIFFS ON MINIVANS BY CALLING THEM TRUCKS INSTEAD OF CARS HE ALSO PRAISED EUROPE'S AUTOMOBILE QUOTA SYSTEM WHICH LIMITS THE MARKET SHARE OF THE JAPANESE TO 16 ABOUT HALF WHAT THE JAPANESE HAVE ACHIEVED IN THE US MR CLINTON DIDN'T MAKE ANY COMMITMENTS BUT A FORD SPOKESMAN COMMENDED THE PRESIDENT FOR LISTENING AND TALKING WITH US AROUND THE SAME TIME AT A UNITED STEELWORKERS OF AMERICA MEETING IN PITTSBURGH UNION PRESIDENT LYNN WILLIAMS SKETCHED A PLAN TO PUT A 5ATON TAX ON STEEL SOLD IN THE US WITH THE PROCEEDS GOING TO COMPANIES USUALLY UNIONIZED ONES WITH HIGH HEALTHCARE AND PENSION COSTS THAT WOULD ALSO GIVE THE OLDLINE MILLS WHICH HAD BIG LAYOFFS DURING THE 1980S A PRICE SUPPORT TO HELP THEM COMPETE WITH FOREIGN STEEL AND US MINIMILLS IN HOUSTON 10 DAYS LATER SOME BIG DOMESTIC OIL AND GAS PRODUCERS CALLED FOR AN OILIMPORT TAX THEY DUBBED IT AN ENERGY SECURITY FEE BECAUSE IT WOULD DIMINISH US RELIANCE ON FOREIGN OIL AS IT INCREASED PROFITS FOR THE US OIL PATCH BUT THE TAX WOULD ALSO UNDERCUT US ARGUMENTS TO OPEN AGRICULTURE TELECOMMUNICATIONS AND OTHER MARKETS IN JAPAN KOREA AND EUROPE THOSE COMPETITORS SAY PROTECTION OF CERTAIN FIELDS IS VITAL TO THEIR OWN SECURITY WHILE IT IS CLEAR THAT THE CLINTON ADMINISTRATION WON'T ADOPT ALL THESE MEASURES MANY IN WASHINGTON INCLUDING SOME CLINTON TRADE ADVISERS ARE BETTING THAT A NUMBER WILL BE APPROVED A VARIETY OF LIKELY ADMINISTRATION PROPOSALS WOULD RAISE CORPORATE COSTS SUCH AS BROADER HEALTH COVERAGE TRAINING REQUIREMENTS AND ENERGY TAXES TRADE PROTECTION WOULD BE AN EASY WAY AND AN INEXPENSIVE ONE FOR THE GOVERNMENT TO HELP COMPANIES COVER THOSE COSTS MOREOVER THE CLINTON ADMINISTRATION OWES A BIG DEBT TO LABOR UNIONS WHICH OFTEN PUSH PROTECTIONIST AGENDAS THE STEELWORKERS WERE THE SECOND LARGEST CONTRIBUTOR TO THE DEMOCRATIC PARTY IN THE LAST TWO YEARS DONATING 403051 ACCORDING TO THE CENTER FOR RESPONSIVE POLITICS AND THE UAW WAS NO 13 WITH 226615 BOTH PROVIDED CRUCIAL MANPOWER AND SUPPORT FOR MR CLINTON IN MIDWESTERN STATES WHEN MR CLINTON WAS CAMPAIGNING IN MICHIGAN HE ECHOED THE AUTO INDUSTRY AND UNION COMPLAINTS ABOUT MINIVANS RUNNING A CAMPAIGN COMMERCIAL THAT CRITICIZED THE BUSH ADMINISTRATION FOR TAXING FOREIGN MINIVANS AT THE LOWER LEVEL IN SOME INSTANCES GOVERNMENT ACTION ISN'T REQUIRED TO SECURE THE RESULTS INDUSTRY SEEKS SIMPLY THE PERCEPTION THAT THE ADMINISTRATION WILL CRACK DOWN IS ENOUGH MS STERN NOTES THAT A FEW YEARS BACK DETROIT CIRCULATED A WHITE PAPER ALLEGING THAT THE JAPANESE PRICED THEIR PICKUP TRUCKS UNFAIRLY PRICES ON JAPANESE PICKUPS SOON SPURTED UPWARD AND A FEW DAYS AFTER MR CLINTON MET WITH THE BIG THREE JAPANESE AUTO MAKERS RENEWED THEIR AUTO EXPORT QUOTAS AT 165 MILLION CARS SEEKING TO FORESTALL FURTHER ACTION DETROIT SAYS THAT ISN'T ENOUGH LAST WEEK WORD LEAKED THAT US AUTO MAKERS WERE COMPILING INFORMATION THAT COULD BE USED IN A POTENTIAL DUMPING CASE AGAINST JAPANESE CAR MAKERS AN ALLEGATION OF SELLING ABROAD AT LOWER PRICES THAN IN THE HOME MARKET MEANWHILE FORD AND CHRYSLER CORP HAVE RECENTLY ANNOUNCED UNUSUAL MIDYEAR PRICE INCREASES IN OTHER CASES A STRONG ADMINISTRATION HAND IS NECESSARY THE STEEL TARIFF MOVE COULD BE DERAILED BY A SUBSEQUENT COMMERCE DEPARTMENT DECISION THIS SPRING OR BY THE INTERNATIONAL TRADE COMMISSION A MONTH LATER WHICH MUST RULE ON WHETHER AN AGGRIEVED INDUSTRY WAS ACTUALLY INJURED BY THE FOREIGN COMPETITION THE COMMERCE DEPARTMENT HAS DEEMED UNFAIR STEEL USER CATERPILLAR INC PLANS TO OPPOSE THE TARIFFS BY TESTIFYING BEFORE THE ITC THAT THE STEEL INDUSTRY'S WOES COME LARGELY FROM DOMESTIC COMPETITION FROM MINIMILLS NOT FROM IMPORTS THE STEELMAKERS SAY THEY WILL PURSUE THEIR DUMPING CASE TO THE END BUT RATHER THAN RISK DEFEAT SAYS NICHOLAS TOLERICO A FORMER COMMERCE DEPARTMENT OFFICIAL THE COMPANIES WILL PROBABLY PUSH THE CLINTON ADMINISTRATION TO BROKER A COMPROMISE THAT WOULD HAVE THE EFFECT OF REDUCING IMPORTS INDEED EVEN BEFORE LAST WEEK'S DECISION THE STEELMAKERS HAD MOVED TO RAISE PRICES IN EXPECTATION OF DIMINISHED COMPETITION STEEL CASES ARE INHERENTLY POLITICAL THEY ARE FILED DURING PRESIDENTIAL CAMPAIGN YEARS TO PUT PRESSURE ON THE CANDIDATES AND THE ANNOUNCEMENT OF PRELIMINARY IMPORT TARIFFS EXERTS HUGE PRESSURE ON FOREIGN GOVERNMENTS TO AGREE TO SOME SORT OF DEAL LIMITING THEIR EXPORTS OR RAISING THEIR PRICES THIS IS ALL ABOUT INCREASING CASH FLOW SAYS MR TOLERICO WHO UNTIL FRIDAY WAS A WASHINGTON REPRESENTATIVE OF STEELMAKER LTV CORP THE CLINTON TEAM WILL SOON BE FORCED TO SEND A CLEAR SIGNAL ABOUT ITS TRADE POLICY ON FEB 11 SIR LEON BRITTAN THE EUROPEAN COMMUNITY'S TOP TRADE MINISTER IS COMING TO WASHINGTON TO TALK WITH MR KANTOR ABOUT REVIVING THE GATT TALKS SHORTLY AFTER THAT THE US WILL BEGIN NEGOTIATING SIDE AGREEMENTS TO NAFTA ON ENVIRONMENTAL AND LABOR STANDARDS IN THE CASE OF GATT THE GOVERNMENT WOULD HAVE TO STAND UP TO MOVIE SEMICONDUCTOR AND TEXTILE INTERESTS IN ORDER TO STRIKE A QUICK DEAL BEFORE THE MARCH 2 EXPIRATION OF THE SOCALLED FASTTRACK NEGOTIATING AUTHORITY THAT IS ESSENTIAL TO GETTING THE PACKAGE APPROVED BY CONGRESS WITH NAFTA THE ADMINISTRATION WOULD HAVE TO FACE DOWN LABOR WHICH WANTS A SIDE DEAL THAT WOULD IMPOUND AT THE BORDER PRODUCTS FROM FACTORIES NOT LIVING UP TO MINIMUM HEALTH OR CHILDLABOR STANDARDS IF THE US PRESSES MEXICO FOR TOO MANY CONCESSIONS WARNS NORA LUSTIG OF THE BROOKINGS INSTITUTION MEXICO MIGHT WALK AWAY FROM THE NOTYETRATIFIED AGREEMENT CONCLUDING THAT MEXICO COULD WIND UP TREATED WORSE THAN OTHER TRADING PARTNERS THAT DON'T NEED TO MEET THESE STANDARDS TO EXPORT TO THE US ANOTHER CRUCIAL TEST INVOLVES SEMICONDUCTORS BY MIDMARCH ACCORDING TO THE TERMS OF A USJAPAN SEMICONDUCTOR AGREEMENT JAPAN IS SUPPOSED TO RESERVE 20 OF ITS COMPUTER CHIP PURCHASES FOR FOREIGNERS MAINLY THE US SO FAR IT HAS MANAGED ONLY 16 AND ISN'T EXPECTED TO DO MUCH BETTER BY THE MARCH DEADLINE THE SEMICONDUCTOR INDUSTRY IS CONSIDERING WHAT KIND OF PRESSURE TO ASK THE ADMINISTRATION TO APPLY TO JAPAN ONE POSSIBILITY STEEP TARIFFS ON SUCH JAPANESE IMPORTS AS POWER TOOLS CELLULAR PHONES AND AUTOMOBILES THESE COULD BE ANNOUNCED AND DELAYED TO GIVE THE JAPANESE TIME TO MEET THE GOALS LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS HAS PRAISED PARTS OF THE SEMICONDUCTOR AGREEMENT FOR FORCING JAPAN TO OPEN ITS MARKETS BUT THE STRONGARM APPROACH HAS ITS CRITICS TOO KENNETH FLAMM A SEMICONDUCTOR EXPERT AT BROOKINGS SAYS SETTING QUOTAS COULD BECOME A DANGEROUS PRECEDENT IF THE 20 LEVEL WERE APPLIED TO OTHER SECTORS WHERE US PRODUCERS MIGHT DO BETTER IN THOSE CASES THE 20 QUOTA ON US GOODS THEN COULD BECOME A BARRIER NOT A BOOST TO TRADE WHATEVER TRADE PROTECTION MR CLINTON OFFERS INDUSTRY MS STERN ARGUES THE PRESIDENT MUST CONTROL THE AGENDA SHE URGES THE ADMINISTRATION TO PRESS COMPANIES TO USE WHATEVER INCREASED PROFITS THEY PICK UP FROM TRADE RELIEF TO PUSH JAPAN STYLE FOR A LARGER GLOBAL MARKET SHARE IN ANY CASE A NATIONAL ECONOMIC STRATEGY SHOULDN'T BE DICTATED BY INDUSTRIES SEEKING PROTECTION SHE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR OILIMPORT FEE MEANS SURVIVAL NOT PROFIT WSJ FEB 24 1993 9302010015 9302240120 930224 CD YIELDS DROPPED DURING LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS DECLINED DURING THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 276 FROM 281 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS DECLINED TO 502 FROM 512 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED DOWNWARD TO 308 FROM 311 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD DROPPED TO 493 FROM 524 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 279 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE FELL TO 507 FROM 524 ACCORDING TO BANXQUOTE 9302240119 930224 FORD MOTOR OF CANADA POSTS WIDER LOSS FOR '92 OAKVILLE ONTARIO FORD MOTOR CO OF CANADA POSTED A WIDER LOSS FOR 1992 CITING A DECLINE IN THE VALUE OF THE CANADIAN DOLLAR AND HIGHER PRODUCT AND MARKETING COSTS THE COMPANY HAD A LOSS OF 3638 MILLION CANADIAN DOLLARS US2886 MILLION COMPARED WITH A LOSS OF C2211 MILLION FOR 1991 FORD CANADA WHICH IS 94 OWNED BY FORD MOTOR CO DEARBORN MICH ALSO SAID THE COMPANY WON'T DECLARE A COMMON STOCK DIVIDEND THIS YEAR THE CANADIAN AUTO MAKER MOST RECENTLY PAID A DIVIDEND IN MARCH 1990 SEPARATELY FORD CANADA SAID IT IS VOLUNTARILY RECALLING 63200 CARS INCLUDING TAURUSES AND SABLES PRODUCED IN THE 19861988 MODEL YEARS AND 1988 LINCOLN CONTINENTALS WITH V6 ENGINES BECAUSE OF POSSIBLE CORROSION OF BODY MOUNTS CAUSED BY HEAVY EXPOSURE TO ROAD SALTS AND MOISTURE THE CORROSION COULD RESULT IN THE MOUNT SEPARATING RESULTING IN STEERING PROBLEMS THE COMPANY SAID THE VEHICLES AFFECTED BY THE RECALL WERE SOLD OR IN USE IN ONTARIO QUEBEC AND THE ATLANTIC PROVINCES 9302240117 930224 TUESDAY'S MARKETS STOCKS DROP 1972 POINTS DOLLAR MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A SHARP DECLINE IN CONSUMER CONFIDENCE KNOCKED STOCK PRICES LOWER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 1972 TO 332327 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SLIPPED 044 TO 43480 AND THE NASDAQ COMPOSITE INDEX FELL 086 TO 65156 THE SLIDE IN CONSUMER CONFIDENCE DISCOURAGED STOCK INVESTORS BUT BOND TRADERS SAW EXPECTATIONS OF A WEAKENING ECONOMY AS REASON FOR A HUGE RALLY WHICH SENT THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE TO A RECORD LOW OF 682 THE CONFERENCE BOARD REPORTED THAT ITS CONSUMER CONFIDENCE INDEX STOOD AT 685 IN FEBRUARY A DECLINE OF MORE THAN EIGHT POINTS FROM JANUARY THE BOARD NOTED THAT ITS SURVEY CONDUCTED IN THE TWO WEEKS BEFORE PRESIDENT CLINTON ANNOUNCED HIS ECONOMIC PACKAGE TO CONGRESS FOUND LITTLE CHANGE IN THE VIEWS ABOUT CURRENT CONDITIONS BUT A STEEP DECLINE IN CONSUMERS' EXPECTATIONS THE FIGURES UNDERSCORE THAT CONSUMER CONFIDENCE IS MORE FRAGILE THAN WE WOULD LIKE SAID JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN WE HAVEN'T SEEN A DECIDED TURN FOR THE BETTER IN THE JOBLESS RATE AND UNTIL THAT HAPPENS PEOPLE WILL BE A LITTLE NERVOUS THE SCALEDBACK EXPECTATIONS FOR THE ECONOMY HAMMERED LARGE ECONOMICALLY SENSITIVE STOCKS PARTICULARLY AUTOS THE DOW JONES TRANSPORTATION INDEX OFTEN A MEASURE OF FUTURE ECONOMIC ACTIVITY SLUMPED 906 TO 148265 BUT DRUG AND HEALTH CARE STOCKS REBOUNDED AFTER TUMBLING MONDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 044 TO 9431 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 321050000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1057 ISSUES ROSE AND 927 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16230 MARKS AND 11708 YEN COMPARED WITH 16235 MARKS AND 11640 YEN MONDAY 9302240116 930224 LEISURE & ARTS BOOKSHELF A HISTORIAN'S OWN EXTRAORDINARY HISTORY BY DONALD LYON WALTER LAQUEUR THE SAGACIOUS AND SENSIBLE HISTORIAN KNOWN FOR HIS WRITINGS ON RUSSIA GERMANY AND ZIONISM PERSONALLY ESCHEWS THE MELODRAMATIC BUT HISTORY HAS HAD A VERY DRAMATIC WAY WITH HIM NEVERTHELESS AS IS CLEAR FROM HIS EXTRAORDINARY NEW BOOK THURSDAY'S CHILD HAS FAR TO GO A MEMOIR OF THE JOURNEYING YEARS SCRIBNER'S 418 PAGES 30 THE ONLY CHILD OF A RESERVED MODESTLY SITUATED GERMANJEWISH COUPLE HE WAS BORN IN 1921 IN BRESLAU A SOLID IF UNGLAMOROUS CITY IN EASTERN GERMANY NOW POLAND BY THE LATE 1930S DAILY LIFE WAS BECOMING INCREASINGLY DIFFICULT FOR JEWS IN NOWNAZI GERMANY AND ESCAPE PROBLEMATIC IN 1938 THROUGH A COMBINATION OF FORESIGHT AND GOOD LUCK MR LAQUEUR WAS ACCEPTED AS A STUDENT AT THE UNIVERSITY OF JERUSALEM AND SURPRISINGLY WAS ABLE TO OBTAIN A CERTIFICATE OF EMIGRATION FROM THE NAZIRUN PALESTINE OFFICE IN BERLIN BY NOVEMBER AROUND THE TIME BUCHENWALD WAS BEGINNING TO FILL UP MR LAQUEUR WAS SAFELY IN JERUSALEM WHERE HE QUICKLY DROPPED OUT OF THE SMALL AND UNAPPEALING UNIVERSITY AND JOINED A KIBBUTZ HAZOREA HE DESCRIBES WITH SOME HUMOR AND LIVELY DETAIL THE HARSH REALITIES OF THESE PRIMITIVE BUILDING BLOCKS OF THE JEWISH STATE WHERE CLOTHES AND FORKS WERE SHARED AND THERE WAS BARELY ENOUGH TO EAT MANUALLY UNTALENTED HE PROVED MOST SUITED TO GUARD DUTY ON HORSEBACK RIDING THROUGH THE FIELDS ON AN EARLY SPRING OR AUTUMN MORNING WITH FINE VIEWS FROM THE CARMEL TO MOUNT TABOR WITH THE GROUND AND THE TREES COVERED WITH DROPS OF WATER LIKE SPARKLING PEARLS MR LAQUEUR EVOKES THE IDEALISTIC OXYGEN OF THESE YEARS THE SEEDTIME OF ISRAEL IN 1946 HE LANDED A JOB AS JERUSALEM CORRESPONDENT FOR THE PALESTINE POST A TEL AVIV NEWSPAPER A FIRMLY SECULAR ZIONIST HE CANDIDLY DISLIKED JERUSALEM WITH ITS QUARRELING MONKS AND ORTHODOX JEWS IN AN ADVANCED STATE OF TRANCE BUT AS HISTORY WOULD HAVE IT HE FOUND HIMSELF WRITING FROM THAT CITY AT ITS MOST EXCITING HOUR FROM NOVEMBER 1947 UNTIL JUNE 1948 JERUSALEM WAS ISOLATED BY THE ARAB LEGION ALL BUT CUT OFF FROM JEWISH PALESTINE ON THE COAST BREAD WAS RATIONED HOMES SHELLED PEDESTRIANS SLAIN IN LATE APRIL A FORCE OF YOUNG JEWISH IRREGULARS CALLED THE PALMACH BROKE THROUGH AND RELIEVED THE DESPERATE CITY ON MAY 14 CRACKLING RADIOS BROUGHT NEWS OF THE ESTABLISHMENT OF THE STATE OF ISRAEL MR LAQUEUR'S IMPRESSIONS OF THE POSTWAR WORLD OF LONDON AND PARIS IN THE EARLY '50S AND THE RUSSIA OF STALIN WHOM HE ALWAYS SAW AS A MENACE EQUAL TO HITLER AND GORBACHEV ARE NEVER UNINTERESTING BUT THEY DON'T HAVE THE FRESHNESS AND POWER OF HIS GERMAN AND PALESTINIAN RECOLLECTIONS HIS GERMAN MEMORIES IN PARTICULAR COME BACK TO HIM WITH REMARKABLE VIVIDNESS IN A SENSE THIS IS SURPRISING FOR HE DISCLAIMS ANY INTEREST IN SELFINTROSPECTION OR THE RELATIONSHIPS WITH FELLOW HUMAN BEINGS ALL THOSE THINGS THAT USUALLY CONSTITUTE 90 OF MEMOIRS MR LAQUEUR'S PRESENT FAMILY LIFE IS ALL BUT INVISIBLE THOUGH WE LEARN HE MARRIED IN THE KIBBUTZ AND STARTED A FAMILY IN THE EARLY '50S THE PARADOX IS THAT THIS FASTIDIOUS RETICENCE CAN BE INTENSELY MOVING AS HE TRIES TO REMEMBER WITHOUT UNDUE DRAMA JUST THE ATMOSPHERE OF THOSE DAYS BRESLAU IS TODAY DOUBLY DEAD FOR HIM THE JEWISH COMMUNITY HE LEFT INCLUDING HIS PARENTS PERISHED IN THE CAMPS THEN THE VERY PLACE BECAME PART OF POLAND AFTER THE WAR AND IS NOW THE FANATICALLY DEGERMANIZED WROCLAW BUT IN THE PHOTOGRAPHS INCLUDED IN THIS MEMOIR BRESLAU HAS THE PICTURESQUE APPEAL OF NUREMBERG AND HE IS A NORMAL BOY WHO WANTED A NORMAL ADOLESCENCE AND TO A LIMITED EXTENT HAD ONE HE STAYED IN SCHOOL TOOK HIS ABITUR DIPLOMA IN 1938 AND RECALLS NO OPEN ANTISEMITIC INCIDENTS THERE WHILE DESCRIBING SUBTLE PRESSURES TO CONFORM AT THE BRESLAU PUBLIC LIBRARY HE OCCASIONALLY CHECKED OUT A NAZI BOOK TO PLACATE THE SUSPICIOUS LIBRARIANS HE REMEMBERS TAKING BOXING LESSONS FROM A JEWISH TRAINER SECRETLY PATRONIZED BY THE LOCAL ARYAN PUGILISTS AND JOINING A VERY TEUTONICSOUNDING HIKING GROUP THAT HAD MYSTICAL EXPERIENCES ON ITS WEEKEND JAUNTS IN HIS BELOVED SILESIAN MOUNTAINS I HAVE MISSED THE GERMAN FOREST ALL MY LIFE HE WRITES BY 1937 REALITY WAS FORCING ITSELF UPON THE YOUNG ESCAPIST HE DESCRIBES AN ECSTATIC HITLER RALLY IN BRESLAU IN JULY 1938 HE LISTS IT IS HEARTBREAKING THE LECTURES AND CONCERTS SPONSORED BY BRESLAU'S JEWISH CULTURAL ASSOCIATION IN THE SUMMER OF 1938 WELLATTENDED BY HIS FATHER AND OTHER FORCIBLY UNEMPLOYED JEWS HE WRITES OF HIS FAMILY AT THE TRAIN STATION ON NOV 7 1938 WEEPING MOTHER SILENT FATHER HE SAD BUT IGNORANT OF THE FUTURE AND FULL OF A 17YEAROLD'S RESILIENCE HE NEVER SAW THEM AGAIN THURSDAY'S CHILD IS AN INVALUABLE RECORD FILLED WITH ILLUMINATING IF OBJECTIVE DETAILS OF A JEWISH ADOLESCENCE IN NAZI GERMANY AND A JEWISH YOUNG MANHOOD IN PALESTINE AND SOMEHOW ITS VERY GERMANJEWISH QUALITIES OF SOBRIETY RESTRAINT AND INDUSTRY MAKE IT FINALLY BOTH POIGNANT AND FORTIFYING 9302240115 930224 INTERNATIONAL SMITHKLINE BEECHAM REPORTS SALES PROFIT ROSE 11 LAST YEAR SPECIAL TO THE WALL STREET JOURNAL LONDON SMITHKLINE BEECHAM PLC REPORTED AN 11 RISE IN 1992 PRETAX PROFIT BUT WARNED THAT POSSIBLE CHANGES IN US HEALTH CARE POLICY COULD MAKE IT DIFFICULT TO MATCH THAT GROWTH RATE THIS YEAR THE BRITISH DRUG MAKER SAID PRETAX PROFIT ROSE TO 112 BILLION 163 BILLION FROM 1 BILLION IN 1991 ON AN 11 INCREASE IN SALES TO 522 BILLION FROM 469 BILLION HOWEVER CURRENCY FLUCTUATIONS DISTORTED UNDERLYING GROWTH RATES MEASURED AT CONSTANT EXCHANGE RATES PRETAX PROFIT ROSE 15 AND SALES WERE UP 10 LAST YEAR THE COMPANY SAID GROWTH APPARENTLY ACCELERATED DURING THE FOURTH QUARTER DURING WHICH SMITHKLINE SAID PRETAX PROFIT SPURTED 16 AND SALES JUMPED 18 FROM A YEAR EARLIER THE COMPANY DIDN'T DISCLOSE THOSE QUARTERLY PROFIT RESULTS HOWEVER SMITHKLINE'S RESULTS WERE BROADLY IN LINE WITH ANALYSTS' ESTIMATES THE COMPANY'S BENCHMARK CLASS A SHARES ROSE THREE PENCE TO 424 PENCE IN LATE LONDON TRADING IN A PHONE INTERVIEW SMITHKLINE CHAIRMAN ROBERT BAUMAN SAID HE WAS PLEASED WITH THE STRONG SALES GROWTH LAST YEAR AND PARTICULARLY THE ACCELERATING SALES GROWTH TOWARD THE END OF 1992 BUT HE CAUTIONED THAT WITH THE CURRENT CLIMATE THAT EXISTS 1993 ISN'T EASY TO PROJECT WE EXPECT TO HAVE ANOTHER GOOD YEAR AND ARE TARGETING THE KIND OF MOMENTUM WE HAD IN 1992 BUT ONLY TIME WILL TELL WHAT THE US MARKETPLACE WILL PRODUCE UNCERTAINTY CENTERS ON THE CLINTON ADMINISTRATION'S PROMISED OVERHAUL OF THE US HEALTH CARE SYSTEM MR CLINTON HAS CITED DRUG PRICING IN PARTICULAR 9302240114 930224 TREASURY PLANS TO SELL 232 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 275 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2348 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING JUNE 3 1993 AND SEPT 2 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794D27 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794F58 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9302240113 930224 LEISURE & ARTS THEATER NOT READY FOR THE RIALTO BY LAURIE WINER NEW YORK ANGELS IN AMERICA AND THE KENTUCKY CYCLE BOTH ARE AMBITIOUS TWOPART WORKS BY VIRTUALLY UNKNOWN PLAYWRIGHTS EXAMINING THE MORAL MOOD OF THE NATION BOTH WERE PERFORMED AT THE MARK TAPER FORUM IN LOS ANGELES AND BOTH EARNED SUBSTANTIAL GRANTS FROM THE AMERICAN EXPRESS FUND FOR NEW AMERICAN PLAYS IMPORTANT CRITICS TRUMPETED EACH ONE THE KENTUCKY CYCLE WAS AWARDED THE 1992 PULITZER PRIZE BUT WHILE PRODUCERS THREW EACH OTHER TO THE CURB FOR THE PRIVILEGE OF CHAUFFEURING ANGELS IN AMERICA TO BROADWAY THE KENTUCKY CYCLE CAN'T GET A CAB ROBERT SCHENKKAN'S CYCLE NINE INTERCONNECTED ONEACT DRAMAS THAT TELL THE BLOODY SAGA OF AN AMERICAN FAMILY FROM 1775 TO 1975 IS THE FIRST PLAY EVER TO WIN A PULITZER WITHOUT A NEW YORK PRODUCTION BUT SO FAR EVERY PLAN TO BRING IT TO BROADWAY HAS EVAPORATED AND THE PLAY HAS ALSO DAUNTED INSTITUTIONAL AND REGIONAL THEATERS ALTHOUGH SEATTLE'S INTIMAN THEATER GAMBLED BIG BY DEBUTING IT IN 1991 I'M BEWILDERED BY WHY IT HASN'T HAPPENED SAYS THE 39YEAROLD PLAYWRIGHT FROM HIS LOS ANGELES HOME MY BLOOD PRESSURE GOES UP EVERY TIME I THINK ABOUT IT MEANWHILE TONY KUSHNER'S ANGELS IN AMERICA IS GLIDING INTO NEW YORK ALL SAILS SET WHY IT SEEMS TO HAVE BEEN BORN WITH BOXOFFICE ADVANTAGE IT ADDRESSES URGENT SUBJECTS AIDS AND HOMOPHOBIA AMONG OTHERS IN A FLUID AND IMAGINATIVE VOICE IT FEATURES TITILLATING HISTORICAL CHARACTERS A FLAMBOYANT ROY COHN AND THE GHOST OF THE EXECUTED ETHEL ROSENBERG LAST YEAR'S WORLD PREMIERE IN LONDON WAS A HAPPENING WITH A CHAUVINISTIC BRITISH THEATER COMMUNITY CONGRATULATING ITSELF ON BEING THE FIRST TO SEE THE MOST IMPORTANT AMERICAN PLAY IN YEARS NOT TO BE OUTDONE THE NEW YORK TIMES SOON MODEMED HOME A RAVE AND DURING THE 1992 TONY AWARD TELECAST SIR IAN MCKELLEN PREDICTED THAT IN 1993 ANGELS WOULD WIN ALL THE STATUETTES PRODUCERS REACTED ACCORDINGLY ARRANGING DEALS AND REARRANGING ALLIANCES UNTIL A CONSORTIUM EMERGED TO PRODUCE THE SHOW ABOVETHETITLE BILLING READS JUJAMCYN THEATERS AND THE MARK TAPER FORUM GORDON DAVIDSON ARTISTIC DIRECTOR WITH MARGO LION SUSAN QUINT GALLIN THE BARUCHFRANKELVIERTEL GROUP BRUCE MAILMAN AND FREDERICK ZOLLO IN ASSOCIATION WITH THE NEW YORK SHAKESPEARE FESTIVAL JOANNE AKALAITIS ARTISTIC DIRECTOR MORDECAI/COLE PRODUCTIONS AND HERB ALPERT PRESENT ANGELS IN AMERICA' THE BROADWAY OPENING IS SET FOR APRIL 29 IN THE MEANTIME THE THIN TRICKLE OF PRODUCERS WHO TREKKED OUT WEST TO SEE CYCLE HAVE ALL TAKEN A PASS ALTHOUGH MOST SAY THEY WERE GREATLY MOVED BY WHAT THEY SAW THE PLAY BEGINS WHEN AN IRISH INDENTURED SERVANT NAMED MICHAEL ROWEN SECURES THE LAND ON WHICH HE WILL BUILD HIS DYNASTY TO ACCOMPLISH THIS HE SLITS A MAN'S STOMACH AND GIVES SMALLPOXINFESTED BLANKETS TO A BAND OF CHEROKEE INDIANS LATER HE KILLS HIS NEWBORN DAUGHTER BECAUSE HE NEEDS A SON ROWEN DESCRIBES HIMSELF AS A NECESSARY ANIMAL AND INDEED MR SCHENKKAN SHOWS THAT MORALITY IS IRRATIONAL TO A MAN WITH NOTHING THE PLAY LOOKS BEHIND THE GREAT MYTHS OF AMERICA'S HEROIC PAST TO CONSIDER THE GREED AND BUTCHERY THAT WERE MIDWIVES TO ITS BIRTH YET ULTIMATELY IT ARGUES THAT WE MUST PROTECT THAT PAST NO MATTER HOW BITTER FROM LIES AND DISTORTIONS BECAUSE OUR HISTORY HOLDS THE KEY TO WHO WE ARE CYCLE ENDS WHEN ROWEN'S GREATGREATGREATGRANDSON FINDS THE PRESERVED CORPSE OF THE MURDERED BABY AS HE CRADLES THE INFANT HE EMBRACES HIS INDIVIDUAL AND COLLECTIVE PAST IN A MORE PROFOUND WAY THAN HE CAN CONSCIOUSLY UNDERSTAND ON AN IDEAL NIGHT SO DOES THE AUDIENCE THE KENTUCKY CYCLE CONCLUDES HOPEFULLY WITH THE POSSIBILITY THAT THE CYCLE OF VIOLENCE AND EXPLOITATION WILL END BUT DESPITE A FEW LAUGHS IT IS A BLEAK HISTORICAL QUASIDOCUMENTARY THAT ASKS THE AUDIENCE TO GIVE IT 6 1/2 HOURS A SACRIFICE USUALLY MADE ONLY FOR THE THEATRICAL EVENT OF THE YEAR ANGELS WHOSE GRIM SUBJECT IS RELIEVED BY BRACING GAY HUMOR AND FLIGHTS OF FANTASY IS THAT EVENT DESPITE THE CONTINUING INTEREST OF PRODUCERS CYCLE SIMPLY MAY NOT BE PRODUCIBLE AT PRESENT WILLIAM HENRY III THE TIME MAGAZINE CRITIC WHO WAS CHAIRMAN OF THE 1992 PULITZER BOARD AND IS ONE OF THE PLAY'S BIGGEST SUPPORTERS COMPARES ITS POTENTIAL PROBLEMS TO THOSE OF A RECENT BROADWAY PRODUCTION ON A SIMILAR THEME THE GRAPES OF WRATH' WON THE TONY WHICH IS MORE SIGNIFICANT TO BOX OFFICE THAN THE PULITZER HE NOTES IT HAD THE ECLAT OF THE STEPPENWOLF COMPANY A RAVE FROM THE TIMES AND IT'S A CERTIFIED CLASSIC I BELIEVE IT LOST ITS ENTIRE INVESTMENT MR HENRY IN FACT BELIEVES THAT STRAIGHT PLAYS ARE DEAD ON ARRIVAL ON BROADWAY UNLESS THEY ARE WRITTEN BY NEIL SIMON HE CONTINUES MR SCHENKKAN'S PLAY IS WHAT LINCOLN CENTER AND THE PUBLIC THEATER ARE THERE FOR BUT ODDS FOR ITS SUCCESS ARE LONG EVEN WITHOUT THE TWONIGHT PROBLEM BLACK AUDIENCES WON'T FEEL IT SPEAKS TO THEIR CONDITION THERE WEREN'T ANY JEWS IN KENTUCKY GAYS WERE CLOSETED I UNDERSTAND WHY A PRODUCER WOULDN'T DO IT BUT I'M FRUSTRATED THAT ECONOMICS HAVE MADE THEATER MARGINAL TO SERIOUS CULTURE IN THIS COUNTRY LINCOLN CENTER PREFERS TO PRODUCE RATHER THAN BOOK SHOWS SO ALTHOUGH ARTISTIC DIRECTOR ANDRE BISHOP SAYS HE LIKED IT QUITE A BIT HE DECLINED TO TAKE ON CYCLE NONPROFITS HAVE PROBLEMS WITH TWOPART EVENINGS IT'S TOO COMPLICATED FOR SUBSCRIBERS HE SAYS PERHAPS A COMMERCIAL PRODUCER COULD HANDLE THE COST OF IT BETTER JAMES FREYDBERG IS A COMMERCIAL PRODUCER WHO SAW CYCLE IN SEATTLE MR SCHENKKAN HAS WRITTEN AN EPIC PLAY A COMPELLING PLAY BUT HE HAS NOT WRITTEN A COMMERCIAL ONE HE SAYS IT'S A SIMPLISTIC BRILLIANT EVENING WITH NOT A LOT OF PIZAZZ MAYBE PLAYS WILL GO THE WAY OF MUSICALS MORE EXPENSIVE WITH LOTS OF GLITZ OR MAYBE PLAYS WILL GO THE WAY OF THE KENTUCKY CYCLE INTO DEVELOPMENT FOR A HOME BOX OFFICE MINISERIES AND BYPASS THE SOCALLED LEGITIMATE STAGE ENTIRELY MS WINER IS A FREELANCE WRITER AND CRITIC IN BROOKLYN NY 9302240112 930224 DEAN WITTER DISCOVER SOARS 15 AS THE IPO MEETS STRONG DEMAND NEW YORK DEAN WITTER DISCOVER ZOOMED 15 ON ITS FIRST TRADING DAY MAKING IT A HOT INITIAL PUBLIC OFFERING BUT SOME ANALYSTS FRETTED ABOUT THE ISSUE'S LOFTY PRICE DEMAND FOR SHARES WAS SO INTENSE THAT UNDERWRITERS FOR THE BROKERAGE AND CREDITCARD COMPANY EXERCISED A CLAUSE ALLOWING THEM TO SELL AN ADDITIONAL 43 MILLION SHARES THAT BROUGHT THE TOTAL SALE TO 338 MILLION SHARES RAISING 9126 MILLION PRICED AT 27 DEAN WITTER DISCOVER OPENED AT 32 AND WAS QUOTED AT 31 IN LATE NEW YORK STOCK EXCHANGE TRADING ON VOLUME OF ABOUT 10 MILLION SHARES PARENT SEARS ROEBUCK & CO ORIGINALLY EXPECTED TO RAISE 23 TO 25 A SHARE IN OFFERING 20 OF DEAN WITTER DISCOVER TO THE PUBLIC SOME ANALYSTS WARNED INVESTORS AGAINST JUMPING IN AT THESE PRICES AT 25 I THOUGHT IT WAS A FAIR VALUATION SAID DEAN EBERLING A BROKERAGE ANALYST AT SHEARSON LEHMAN BROTHERS INC AT 31 IT'S PROBABLY QUIET MONEY' UNTIL WE SEE HOW THE ECONOMY MOVES FORWARD FOR THE QUARTER WHAT DISTURBS SOME ANALYSTS IS THAT DEAN WITTER DISCOVER'S PRICE ABOUT 11 TIMES EARNINGS IS RICHER THAN THE PRICETOEARNINGS MULTIPLES OF ESTABLISHED PUBLICLY TRADED BROKERS MERRILL LYNCH & CO 75 AND PAINEWEBBER GROUP 54 AND THE COMPANY'S DISCOVER CARD COULD GET PINCHED IN THE INCREASINGLY COMPETITIVE CREDITCARD MARKET SOME ANALYSTS SAY STILL DEAN WITTER'S BROKERAGE OPERATIONS HAVE POSTED STRONG EARNINGS FOR FIVE STRAIGHT YEARS MUCH OF ITS PROFIT STEMS FROM STABLE FEES FROM PROPRIETARY OR INHOUSE MUTUAL FUNDS ANALYSTS SAY AND IT DOESN'T DABBLE IN RISKY TRADING USING THE HOUSE'S MONEY MEANTIME THE BIGGEST PAPER PROFITS SO FAR BELONG TO DEAN WITTER'S EMPLOYEES THEY BOUGHT 55 MILLION SHARES AT 2560 EACH 9302240111 930224 STONE & WEBSTER UNIT CONTRACT NEW YORK STONE & WEBSTER ENVIRONMENTAL TECHNOLOGY & SERVICES SAID IT HAS BEEN SELECTED AS PART OF A TEAM TO NEGOTIATE AN ENVIRONMENTAL SERVICES CONTRACT WITH THE NAVY THAT COULD BE WORTH AS MUCH AS 100 MILLION UNDER TERMS STONE & WEBSTER WILL PROVIDE SERVICES IN THE NORTHEAST AS PART OF THE NAVY'S BASE REALIGNMENT AND CLOSING PROGRAM STONE & WEBSTER A UNIT OF CONSTRUCTION AND ENGINEERING SERVICES CONCERN STONE & WEBSTER INC SAID IT IS THE MAJOR SUBCONTRACTOR TO EA ENGINEERING SCIENCE & TECHNOLOGY INC HUNT VALLEY MD THE PRIME CONTRACTOR ON THE PROJECT THE ONEYEAR CONTRACT ALLOWS FOR AS MANY AS NINE ADDITIONAL OPTION YEARS STONE & WEBSTER SAID ITS WORK UNDER THE CONTRACT WILL INCLUDE ENVIRONMENTAL ASSESSMENTS ENVIRONMENTAL COMPLIANCE REVIEWS FEASIBILITY STUDIES AND OTHER SERVICES 9302240110 930224 CORPORATE FOCUS BALL IS PREPARING TO CLEAN OUT ITS CORPORATE CUPBOARD HOMECANNING JARS ARE AMONG THE NONCORE BUSINESSES TO BE SPUN OFF BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR GENERATIONS OF HOMECANNERS BALL CORP HAS SUPPLIED THE FAMILIAR GLASS JARS AND METAL LIDS USED TO STORE EVERYTHING FROM APPLE BUTTER TO CANDIED YAMS BUT THE MUNCIE IND COMPANY IS CLEANING OUT ITS CORPORATE CUPBOARD AND SOON WILL SHED THAT PIECE OF AMERICANA THE BUSINESS IT WAS FOUNDED ON THROUGH A SPINOFF THAT SAYS AS MUCH AS ANYTHING ABOUT THIS CENTURYOLD COMPANY'S COMMITMENT TO FOCUSING ON ITS CORE CONTAINER BUSINESS THESE DAYS BALL CHURNS OUT BILLIONS OF METAL CANS AND GLASS CONTAINERS FOR THE MAKERS OF A WIDE ARRAY OF CONSUMER PRODUCTS LIKE BEER AND BABY FOOD ITS GROWTH IS ACCELERATING AS CONSOLIDATION CONTINUES IN THE ROUGHLY 20 BILLION A YEAR CAPITALINTENSIVE AND THINMARGIN INDUSTRY IN RECENT YEARS BALL HAS PURCHASED FULL OWNERSHIP OF TWO BIG FORMER JOINT VENTURES ACQUIRED ADDITIONAL GLASSCONTAINER CAPACITY SPENT HEAVILY TO UPGRADE ITS PLANTS AND GAINED A FIRST AND SUBSTANTIAL PRESENCE IN THE US FOODCAN BUSINESS THROUGH A PACT TO ACQUIRE HEEKIN CAN INC OF CINCINNATI AT THE SAME TIME RESPONDING TO WALL STREET'S FREQUENT COMPLAINT THAT IT IS INVOLVED IN TOO MANY BUSINESSES BALL HAS BEEN PREPARING THE SPINOFF THIS SPRING OF A DIVERSE PACKET OF SEVEN NONCORE OPERATIONS THOSE OPERATIONS TO BE KNOWN AS ALLTRISTA CORP INCLUDE THE HOMECANNING BUSINESS AND OTHER SMALLFRY OPERATIONS EVERY COMPANY IS RESOURCELIMITED SAYS DELMONT A DAVIS BALL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER HE NOTES THAT THE BUSINESSES BEING SPUN OFF WHILE ACCOUNTING FOR JUST 269 MILLION OF 1992 REVENUE COMPARED TO THE REMAINING OPERATIONS' 218 BILLION STILL TENDED TO TAKE A FAIR AMOUNT OF RESOURCES IN BOTH CAPITAL AND MANAGEMENT TIME WHILE WIDELY CONSIDERED ASTUTE BALL'S NEW STRATEGY IS FAR FROM A SURE THING THE STREAMLINING FOR INSTANCE INCREASES BALL'S EXPOSURE IN THE MATURE AND HIGHLY CYCLICAL CONTAINER MARKET EXCESS CAPACITY CONTINUES TO DAMP PRICES AND UNCONTROLLABLE FACTORS CAN DERAIL EVEN THE BESTLAID PLANS LAST YEAR'S UNSEASONABLY COOL SUMMER FOR EXAMPLE TOOK THE FIZZ OUT OF BEER AND SODA SALES AND CHILLED BALL'S SALES TO GIANT CUSTOMERS LIKE ANHEUSERBUSCH COS PEPSICO INC AND COCACOLA CO MEANWHILE BALL'S FOODCAN BUSINESS IN CANADA GOT SOCKED WHEN FISHERMEN THERE HAD A DISAPPOINTING SALMON CATCH FURTHER WHILE BALL HAS BEEN CENTERING ON SEGMENTS OF THE CONTAINER MARKET WHERE GROWTH IS STILL SOLID DEMOGRAPHIC AND TECHNOLOGICAL TRENDS SUGGEST SOME INDUSTRY NICHES WILL CONTRACT OR SEE LITTLE FUTURE VOLUME GROWTH PLASTICS HAVE MADE INROADS IN THE PACKAGING BUSINESS IN THE PAST DECADE NOTES MR DAVIS SPURRING MAJOR CONSOLIDATION IN THE INDUSTRY AT THE SAME TIME CONSUMERS HAVE SHOWN MORE OF AN APPETITE FOR DINING OUT OR FOR USING FRESH VEGETABLES RATHER THAN THOSE IN A JAR IN THE METAL BEVERAGECAN INDUSTRY UNIT VOLUME IS INCHING UP DESPITE THE PLATEAUING OF NATIONWIDE BEER SALES THAT IS BECAUSE SOFTDRINK SALES CONTINUE TO GROW BALL'S GROWTH PROSPECTS IN THE FLAT BEER INDUSTRY ARE CONSIDERED HEALTHIER THAN SOME RIVALS' BECAUSE IT IS THE BIGGEST OUTSIDE CAN SUPPLIER TO ANHEUSERBUSCH WHOSE MARKET SHARE CONTINUES TO RISE OBSERVERS MAINTAIN THAT THE SHAKEOUT TRIMMING THE NUMBER OF INDUSTRY PLAYERS PROMISES TO GENERATE FUTURE HIGHER PROFITS TO THE SURVIVORS INCLUDING BALL THE NATION'S FOURTHLARGEST CAN MANUFACTURER AND NO 3 MAKER OF GLASS CONTAINERS ALTHOUGH ITS SHARE PRICE HASN'T YET RISEN MUCH A NUMBER OF ANALYSTS HAVE BECOME IMPRESSED WITH WHAT THEY SEE AS BALL'S GROWING MOMENTUM AS WELL AS ITS EFFORTS TO PARE COSTS AND BOOST EFFICIENCY SUCH MOVES THEY THINK POSITION BALL FOR SOLID PROFIT GROWTH WHEN THE PACKAGING INDUSTRY STRENGTHENS HISTORICALLY BALL'S COMPETITIVE EDGE HAS BEEN ITS POSITION AS A LOWERCOST PRODUCER OF ALUMINUM BEVERAGE CANS AND GLASS CONTAINERS KEEPING THAT ADVANTAGE HASN'T COME CHEAP BALL SPENT ABOUT 180 MILLION IN THE PAST TWO YEARS TO UPGRADE ITS PLANTS BUT THE BULK OF SUCH OUTLAYS ARE NOW BEHIND IT MUCH OF BALL'S COSTCUTTING CAME AFTER IT PAID 176 MILLION TO ACQUIRE FULL OWNERSHIP OF FORMER VENTURES BALL CANADA A MAKER OF FOOD AND BEVERAGE CANS AND BALLINCON A PRODUCER OF GLASS PACKAGING AT BOTH UNITS BALL CLOSED A NUMBER OF PLANTS AND EXPENDED A LOT OF CAPITAL TO MODERNIZE THE REMAINING FACILITIES EXPLAINS MR DAVIS BY MIDYEAR ALL PLANTS WILL BE STATEOFTHEART AND WITH A VERY LOWCOST POSTURE HE SAYS BALL ALSO PAID 70 MILLION LAST YEAR TO BUY KERR GLASS MANUFACTURING CORP'S GLASS CONTAINER BUSINESS BALL'S MOST INTRIGUING MOVE OBSERVERS SAY WAS ITS DECISION IN DECEMBER TO PAY 891 MILLION OF STOCK AND ASSUME A HEFTY 125 MILLION IN DEBT TO ACQUIRE HEEKIN WHILE ITS CANADIAN ACQUISITION HAD INTRODUCED BALL TO THE FOODCAN BUSINESS SALES OF SUCH CANS HAD BEEN ALMOST ENTIRELY NORTH OF THE BORDER WHEN THE HEEKIN DEAL CLOSES IT WILL BRING BALL AN INSTANT 11 STAKE OF THE US FOODCAN MARKET WITH NEARLY 40 OF THE MARKET IN THE MIDWEST WE JUST TOOK A SWATCH FROM CANADA DOWN TO TEXAS MR DAVIS TOLD ANALYSTS THE HEEKIN DEAL PUTS BALL IN A MARKET WHERE FUNDAMENTALS IN THE FOODCAN INDUSTRY HAVE STABILIZED SAYS PAINEWEBBER ANALYST GEORGE R STAPHOS APPROVINGLY ALREADY THE NATION'S BIGGEST SUPPLIER OF GLASS CONTAINERS TO THE FOOD INDUSTRY BALL FIGURES THE NEW US FOODCAN LINE WILL BENEFIT FROM THE COMPANY'S LINKS TO DOMESTIC FOOD MAKERS BALL ALSO GAINS MORE CLOUT WITH RAWMATERIALS SUPPLIERS DOES BALL PLAN MORE FOODCAN ACQUISITIONS TO EXPAND ITS GEOGRAPHIC REACH IT DOESN'T MAKE A LOT OF SENSE FOR US TO BE A REGIONAL PLAYER IN THE FOODCAN BUSINESS WHEN WE'RE A NATIONAL ALMOST GLOBAL PLAYER IN OTHER LINES RESPONDS MR DAVIS IN 1990 BALL WAS FRUSTRATED BY THE COLLAPSE OVER FINANCING DIFFICULTIES OF A PLANNED 103 BILLION DEAL TO PURCHASE THE EUROPEAN OPERATIONS OF PETER KIEWIT SONS' INC'S CONTINENTAL CAN UNIT IN WHAT WOULD HAVE BEEN ITS BIGGEST PURCHASE AND ITS TICKET TO GLOBALGIANT STATUS THE COMPANY REMAINS INTERESTED IN THE RIGHT OPPORTUNITY IN EUROPE AS WELL AS IN ASIA SAYS MR DAVIS BALL HAS A SUPPLY ARRANGEMENT WITH A JAPANESE GLASS COMPANY AND VENTURES IN TAIWAN AND GUANGZHOU CHINA WE THINK CHINA'S A SLEEPER FOR THE PACKAGING INDUSTRY HE SAYS BALL'S THIRD MAJOR BUSINESS LINE IS ITS AEROSPACE DIVISION WHICH MAKES A VARIETY OF SATELLITE AND OTHER HIGHTECH PRODUCTS SOME INVESTORS FEEL BALL'S CORPORATE MAKEOVER WON'T BE COMPLETE UNTIL IT SHEDS ITS LAST NONCONTAINER BUSINESS WHILE MR DAVIS SAYS THE COMPANY WILL DO WHAT'S BEST FOR OUR SHAREHOLDERS HE CONTENDS THAT AEROSPACE STILL FITS AND IS ONE BUSINESS WE WANT TO KEEP 9302240109 930224 TECHNOLOGY & MEDICINE FIRST LADY ADVISED ON POSSIBLE TAX FOR HEALTH PLAN BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF A KEY HEALTH PANEL IN THE HOUSE TOLD HILLARY RODHAM CLINTON THAT A TAX ON THE RECEIPTS OF HEALTHCARE PROVIDERS MIGHT BE THE EASIEST LEVY TO SELL POLITICALLY TO PAY FOR THE ADMINISTRATION'S HEALTHCARE PLAN SUCH A TAX COULD TAKE THE FORM OF A LEVY ON THE GROSS RECEIPTS OF HEALTH INSURANCE COMPANIES AND THE PATIENT FEES TAKEN IN BY DOCTORS AND HOSPITALS SAID REP FORTNEY STARK CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE'S HEALTH SUBCOMMITTEE HE MET WITH MRS CLINTON AND WHITE HOUSE POLICY AIDE IRA MAGAZINER FOR ABOUT 45 MINUTES YESTERDAY AFTERNOON THE HEALTH CARE PLAN COULD INCLUDE A TAX ON THE EMPLOYEE HEALTH BENEFITS PAID BY COMPANIES THAT UNDERWRITE THEIR OWN HEALTH PLAN MRS CLINTON DIDN'T INDICATE WHETHER SHE SUPPORTED THE IDEA MR STARK SAID IN AN INTERVIEW SHE SAID DO YOU THINK THAT WOULD BE EASIER TO GET PASSED' I SAID YES' THE CALIFORNIA DEMOCRAT SAID MRS CLINTON IS OVERSEEING THE ADMINISTRATION'S EFFORTS TO DRAFT A PLAN TO EXPAND HEALTH COVERAGE TO ALL US CITIZENS AND CONTROL ESCALATING MEDICAL COSTS THE GROUP SHE HEADS IS CONSIDERING AN ARRAY OF TAXES TO PAY FOR THE PROGRAM WHICH CLINTON ADVISERS ESTIMATE COULD COST THE FEDERAL GOVERNMENT 30 BILLION TO 90 BILLION ANNUALLY BUT HAS YET TO MAKE A DECISION BUT WHILE THESE DELIBERATIONS GO ON SOME ADMINISTRATION OFFICIALS AND SEVERAL CONGRESSIONAL DEMOCRATS ARE WORRIED THAT MR CLINTON WILL HAVE A HARD TIME SELLING A SECOND ROUND OF TAX INCREASES TO PAY FOR AN AMBITIOUS HEALTH PLAN FOLLOWING THE PACKAGE OF TAX INCREASES HE RECENTLY PROPOSED AS PART OF HIS ECONOMIC AND DEFICITREDUCTION PACKAGE EARLIER IN THE DAY MRS CLINTON SPENT AN HOURANDAHALF MEETING WITH ABOUT 40 DEMOCRATIC AND REPUBLICAN MEMBERS OF THE EXECUTIVE COMMITTEE OF THE CONGRESSIONAL CAUCUS FOR WOMEN'S ISSUES TO DISCUSS AN ARRAY OF WOMEN'S ISSUES AND HOW THEY MIGHT BE ADDRESSED BY THE ADMINISTRATION'S HEALTH PROPOSAL YESTERDAY'S MEETINGS WITH HOUSE MEMBERS MARK THE FOURTH TIME THE FIRST LADY HAS GONE TO CAPITOL HILL ONE MORE TRIP THAN HER HUSBAND HAS TAKEN THOUGH THE HEALTH PLAN IS FAR FROM COMPLETED MRS CLINTON HAS BEEN COURTING CONGRESSIONAL SUPPORT ASSIDUOUSLY MEETING AND CALLING BOTH DEMOCRATIC AND REPUBLICAN MEMBERS TO URGE COOPERATION AND ASSISTANCE 9302240108 930224 US CORPORATE GIFTS TO FOREIGN CHARITIES WERE FLAT IN 1991 NEW YORK US CORPORATE GIFTS TO FOREIGN CHARITIES CLIMBED OVER 500 IN THE LAST DECADE BUT FLATTENED IN 1991 AND PROBABLY WERE FLAT AGAIN IN 1992 THE CONFERENCE BOARD SAID THE NONPROFIT BUSINESSSUPPORTED RESEARCH GROUP'S LATEST SURVEY OF 200 FORTUNE 1000 COMPANIES FOUND THAT SEVERAL YEARS OF DOUBLEDIGIT ANNUAL INCREASES IN CONTRIBUTIONS ABROAD HALTED IN 1991 THE MEDIAN OVERSEAS GIFT IN 1991 WAS 431500 ABOUT THE SAME AS IN 1990 AND DOWN SHARPLY FROM GAINS OF 52 AND 63 IN THE PREVIOUS TWO YEARS THE BULK OF US CORPORATE GIVING WHICH TOTALED 6 BILLION IN 1991 CONTINUES TO REMAIN IN THE US ABOUT 25 OF US FIRMS HAVE GLOBAL GIVING PROGRAMS AND THOSE SURVEYED REPORTED GIVING A TOTAL OF 1515 MILLION OVERSEAS IN 1991 TOP FOREIGN RECIPIENTS HAVE BEEN WESTERN EUROPE FOLLOWED BY CANADA AND THE BIGGEST CAUSES WERE CIVIC AND COMMUNITY CONCERNS AND EDUCATION THE SURVEY SAID TOTAL GIVING AT HOME AND ABROAD FOR 1992 IS ALSO LIKELY TO BE FLAT SAID ANNE KLEPPER SENIOR RESEARCH ASSOCIATE IN THE BOARD'S BUSINESS AND SOCIETY RESEARCH PROGRAM THE BOARD'S SURVEY OF 1992 GIVING PATTERNS WON'T BEGIN UNTIL SPRING INTERNATIONAL BUSINESS MACHINES CORP WHICH HAS BEEN REDUCING COSTS COMPANYWIDE SAYS IT GAVE A TOTAL OF 1183 MILLION LAST YEAR DOWN 12 FROM 1991'S LEVEL CORPORATE PHILANTHROPY OFFICERS NOTE THAT AS THEIR BUSINESS GROWS OUTSIDE THE US SO WILL THEIR GIFTS OFTEN CORPORATE GIFTS ABROAD AND AT HOME CAN ADDRESS SIMILAR CONCERNS SAYS JAMES PARKEL HEAD OF CORPORATE SUPPORT PROGRAMS AT IBM HE NOTES THAT BY THE YEAR 2000 THERE WILL BE MORE CROSSBORDER CONTRIBUTIONS PROGRAMS AS COUNTRIES EXPERIENCE SIMILAR PROBLEMS SUCH AS ENVIRONMENTAL ISSUES 9302240107 930224 REVIEW & OUTLOOK EDITORIAL ASIDES QUOTE OF THE WEEK SPENDING MONEY IS SPENDING MONEY IS SPENDING MONEY NO MATTER WHAT ON THUS NOBEL ECONOMIST JAMES TOBIN IN YESTERDAY'S JOURNAL DEFENDED THE HODGEPODGE OF SPENDING PROPOSALS INSIDE THE CLINTON ECONOMIC PACKAGE FOR THOSE WHO HAVE SPENT A LIFETIME TRYING TO DISCERN THE RATIONAL THREAD THAT RUNS THROUGH DISCRETE DEMOCRATIC SPENDING POLICIES THE SEARCH IS OVER THE DETAILS WERE ALWAYS IRRELEVANT SPENDING MONEY IS SPENDING MONEY CLASS DISMISSED 9302240106 930224 THE MICK JAGGER LOOPHOLE BY RICHARD B MCKENZIE WELCOME BACK TO THE WORLD OF CONFISCATORY AND DISCRIMINATORY TAX RATES UNDER THE BANNER OF SHARED SACRIFICE AND FAIRNESS PRESIDENT CLINTON PROPOSES TO REIMPOSE MARGINAL TAX RATES ON SOME OF AMERICA'S MOST FORTUNATE AND PRODUCTIVE CITIZENS THAT EXCEED 60 LEVELS THAT CAN ONLY BE DESCRIBED AS DRACONIAN MOREOVER HE PROPOSES TO TAX WEALTHY EXECUTIVES AT FAR HIGHER RATES THAN EQUALLY WEALTHY ROCK STARS HOW HAS HE DONE THAT FIRST MR CLINTON HAS RAILED AGAINST TOP AMERICAN EXECUTIVES DECLARING THEIR PAY TO BE UNJUST AND A REFLECTION OF APPALLING GREED HE HAS EFFECTIVELY HIDDEN HIS DEMAGOGIC INTENTIONS BEHIND THE RHETORIC OF POLITICAL VIRTUE SECOND HE HAS PROPOSED THAT THE TOP MARGINAL TAX RATE ON HOUSEHOLD INCOMES OF MORE THAN 250000 BE RAISED TO 396 FROM THE CURRENT 31 AT THE SAME TIME THAT ADDITIONAL LIMITS ARE PLACED ON ITEMIZED DEDUCTIONS HE HAS ALSO PROPOSED THAT EXECUTIVE PAY OF MORE THAN 1 MILLION BE INCLUDED IN THE TAXABLE INCOME OF THE EXECUTIVES' CORPORATIONS IN ADDITION MR CLINTON PROPOSES THAT THE CURRENT MEDICARE TAX RATE OF 145 PAID BY BOTH EMPLOYER AND EMPLOYEE BE APPLIED TO ALL INCOME NOT TO JUST THE FIRST 135000 OF INCOME STIPULATED UNDER CURRENT LAW AND THAT THE TOP CORPORATE INCOME TAX RATE BE RAISED TO 36 FROM THE CURRENT 34 WHAT DO HIS PROPOSALS DO TO THE MARGINAL TAX RATE FACED BY HIGHLY PAID EXECUTIVES MUCH MORE THAN MAY BE THOUGHT CONSIDER AN EXECUTIVE OF A CALIFORNIA FIRM WHO EARNS 2 MILLION A YEAR THE EXECUTIVE WILL FACE A TOP FEDERAL MARGINAL TAX RATE OF 396 PLUS THE 145 MEDICARE TAX RATE PLUS THE TOP CALIFORNIA MARGINAL TAX RATE OF 11 GIVEN THAT THE EXECUTIVE'S CALIFORNIA STATE TAXES ARE DEDUCTIBLE FROM FEDERAL TAXABLE INCOME THE COMBINED MARGINAL TAX RATE OF THE THREE FORMS OF DIRECT INCOME TAXATION NETS TO 477 BUT THE TAX PLOT THICKENS MR CLINTON OBVIOUSLY WANTS TO UNDERCUT LARGE EXECUTIVE SALARIES BY INCREASING THEIR COST TO FIRMS IF HE GETS HIS WAY AND IF THE FIRM LIMITS THE TOTAL COST OF THE EXECUTIVE TO 2 MILLION THE FIRM WILL HAVE TO DROP THE EXECUTIVE'S PAY TO 1727537 THIS IS BECAUSE THE FIRM WILL HAVE TO PAY CORPORATE INCOME TAXES PLUS 145 IN MEDICARE TAXES ON ANY EXECUTIVE PAY OF MORE THAN 1 MILLION MEANING IT WILL HAVE TO PAY 272463 IN ADDITIONAL CORPORATE TAXES BECAUSE OF THE 727537 IN EXECUTIVE PAY THAT MUST NOW BE INCLUDED IN TAXABLE CORPORATE INCOME THE EXECUTIVE'S PAY PLUS THE ADDITIONAL CORPORATE TAXES TOTAL 2 MILLION THE EXECUTIVE'S INCOME ABOVE 1 MILLION WILL COST THE EXECUTIVE 10549 IN EXTRA MEDICARE TAXES 80029 IN CALIFORNIA INCOME TAXES AND 256413 IN FEDERAL INCOME TAXES THIS MEANS THAT OUT OF THE DIRECT COMPENSATION IN EXCESS OF 1 MILLION THE EXECUTIVE WILL SHELL OUT IN THE THREE FORMS OF TAXES 346991 FROM HIS EARNINGS ABOVE 1 MILLION THE EXECUTIVE IS LEFT 380546 IN DISPOSABLE INCOME WHAT IS THE EXECUTIVE'S EFFECTIVE MARGINAL TAX RATE ON EARNINGS ABOVE 1 MILLION FOR ALL PRACTICAL PURPOSES THE TOTAL TAX TAKE FROM THE SECOND 1 MILLION IS 619454 WHICH IS THE SUM OF THE EXECUTIVE'S ADDED PERSONAL TAXES OF 346991 PLUS THE 272463 REDUCTION IN COMPENSATION THE COMBINED EFFECTIVE MARGINAL TAX RATE 619 FOR A CORPORATE EXECUTIVE IN NORTH CAROLINA WHERE THE TOP MARGINAL TAX RATE ON PERSONAL INCOME IS 775 THE COMBINED EFFECTIVE MARGINAL RATE IS SLIGHTLY LOWER 605 MR CLINTON OBVIOUSLY BELIEVES THAT FAIRNESS IS TANTAMOUNT TO SOAKING THE RICH BUT THEN HE IS ESPECIALLY INTERESTED IN SOAKING THE CORPORATE RICH PRECISELY THOSE AMERICANS ON WHOM HE MUST RELY TO GET THE ECONOMY MOVING AGAIN UNDER HIS PROPOSED TAXLAW CHANGES A SELFEMPLOYED CALIFORNIA ROCK STAR WHO EARNS 2 MILLION A YEAR IN ROYALTIES WOULD FACE A MARGINAL TAX RATE OF 491 ON THE SECOND 1 MILLION IN INCOME WHILE THE ROCK STAR'S MARGINAL TAX RATE IS DAUNTING THE CORPORATE EXECUTIVE WOULD FACE A MORE THAN ONEQUARTER HIGHER TAX RATE IS THAT ANY WAY TO STIMULATE MEANINGFUL ECONOMIC GROWTH MR CLINTON HAS GIVEN NEW LIFE TO THE POLITICS OF ENVY PERNICIOUSLY DIRECTED AT A SMALL MINORITY HE HAS PROPOSED THAT A SELECT GROUP OF AMERICANS THOSE WHO DEVELOPED STRATEGICALLY IMPORTANT MANAGERIAL SKILLS DURING THE 1980S AND WHO ALREADY SHOULDER A DISPROPORTIONATE SHARE OF THE NATION'S TAX BURDEN SHOULD BE SINGLED OUT AND FACE CONFISCATORY TAX RATES IN SO DOING HE HAS PLAYED THE ROLE OF THE DEMAGOGUE OFFERING THE MASSES ECONOMIC NIRVANA IF ONLY THEY WILL PENALIZE A SILENT MINORITY WHOSE MAJOR FLAW IS THAT THEY WORKED HARD TOOK RISKS AND WERE SUCCESSFUL MR CLINTON HAS ACCUSED AMERICAN EXECUTIVES OF GREED WHEN THE GOVERNMENT TAKES MORE THAN 60 OF PEOPLE'S ADDED PAY WHO IS THE GREEDIER THE QUESTION POSES THE ANSWER MR MCKENZIE IS A PROFESSOR OF MANAGEMENT AND ECONOMICS AT THE UNIVERSITY OF CALIFORNIA IRVINE AND AN ADJUNCT FELLOW AT THE CENTER FOR THE STUDY OF AMERICAN BUSINESS AT WASHINGTON UNIVERSITY ST LOUIS 9302240105 930224 WHO'S NEWS HOME SHOPPING PICKS HOGAN TO BE CEO PRESIDENT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL GERALD HOGAN LEFT A TOP JOB AT WHITTLE COMMUNICATIONS LP YESTERDAY TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HOME SHOPPING NETWORK INC MR HOGAN SAID HE WAS RECRUITED AWAY FROM WHITTLE WHERE HE WAS VICE CHAIRMAN BY LIBERTY MEDIA INC WHICH BOUGHT 75 OF HOME SHOPPING LAST WEEK UNDER A PACT REACHED IN DECEMBER MR HOGAN 47 YEARS OLD SUCCEEDS ROY SPEER 60 THE COFOUNDER OF HOME SHOPPING WHO WILL REMAIN CHAIRMAN OF THE ST PETERSBURG FLA COMPANY LIBERTY MEDIA ALONG WITH COMCAST CORP AND FORMER FOX INC CHAIRMAN BARRY DILLER ALSO OWNS QVC NETWORKS INC WHICH IS HOME SHOPPING NETWORK'S CHIEF RIVAL MR DILLER'S DECISION IN DECEMBER TO INVEST 25 MILLION IN QVC RAISED SPECULATION THAT QVC AND HOME SHOPPING NETWORK WOULD BE COMBINED AS THE CORNERSTONE OF AN INTERACTIVE TELEVISION EMPIRE THAT COMBINES ENTERTAINMENT PROGRAMMING WITH HOME SHOPPING LIBERTY'S CHOICE OF MR HOGAN ADDS CREDENCE TO THE IDEA THAT LIBERTY WILL SPIN OFF NEW NETWORKS FROM ITS HOME SHOPPING INVESTMENTS BEFORE JOINING WHITTLE IN 1990 HE WAS PRESIDENT OF TURNER BROADCASTING SYSTEM INC'S ENTERTAINMENT NETWORKS WHERE HE LAUNCHED THE SUCCESSFUL TNT MOVIE AND SPORTS NETWORK I NEVER LOST INTEREST IN THE CABLE INDUSTRY IN A BROAD SENSE AND IN PROGRAMMING IN PARTICULAR MR HOGAN SAID WHITTLE COMMUNICATIONS A KNOXVILLE TENN COMPANY THAT IS PARTOWNED BY TIME WARNER INC AND PHILIPS ELECTRONICS NV HAD HIRED MR HOGAN AS PART OF AN EFFORT TO ESTABLISH A BRAIN TRUST OF CREATIVE PEOPLE TO SPUR THE COMPANY'S INNOVATIVE MEDIA PROJECTS BUT MR HOGAN AND OTHER EXECUTIVES HAVE BEEN FRUSTRATED WITH WHITTLE'S INABILITY TO BRING SOME OF ITS PROJECTS TO FRUITION ACCORDING TO SEVERAL PEOPLE CLOSE TO WHITTLE MR HOGAN INSISTS THAT HE WAS HAPPY AND VERY FOCUSED AT WHITTLE AND THAT THE COMPANY HAS EXCITING PROJECTS BREWING SUCH AS THE EDISON PROJECT AN EFFORT TO CREATE FORPROFIT SCHOOLS BUT THIS IS A CHANCE FOR ME TO RUN A COMPANY HOWEVER IF LIBERTY WERE TO MERGE QVC WITH HOME SHOPPING NETWORK MR HOGAN WOULD END UP REPORTING TO MR DILLER AND MIGHT SHARE RESPONSIBILITIES WITH QVC'S CURRENT EXECUTIVES SAID CRAIG BIBB A CONSUMER SERVICES ANALYST WITH PAINEWEBBER GROUP INC TO THE EXTENT THEY'RE GOING TO DIVERSIFY INTO OTHER AREAS BESIDES SHOPPING HE COULD HEAD UP THAT SIDE MR BIBB SAID MR HOGAN WOULDN'T COMMENT ON THE MERGER SPECULATION AND SAID HE INTENDS TO RUN HOME SHOPPING NETWORK AS A COMPETITOR OF QVC TO DO THAT EFFECTIVELY ANALYSTS SAID HE WILL HAVE TO FIND A WAY TO CUT THE COMPANY'S OVERHEAD OR GENERATE NEW REVENUE STREAMS TO JUSTIFY THE COMPANY'S RECENT INVESTMENTS IN TECHNOLOGY AND HEADQUARTERS SPACE 9302240104 930224 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA RICHARD J REDICK 42 YEARS OLD WAS NAMED DIRECTOR OF FINANCE A NEW POSITION AT THIS BANKING COMPANY MR REDICK WILL REPORT TO CHARLES W NEWMAN CHIEF FINANCIAL OFFICER MR REDICK HAD BEEN EXECUTIVE VICE PRESIDENT FOR BAYBANK BOSTON NA 9302240103 930224 INTERNATIONAL US JUDGE DISMISSES SUIT AGAINST BANK BUMIPUTRA MALAYSIA KUALA LUMPUR MALAYSIA A US FEDERAL COURT IN SAN FRANCISCO DISMISSED A SUIT AGAINST BANK BUMIPUTRA MALAYSIA BHD AND SEVERAL FORMER BANK OFFICERS ON THE GROUND THAT HONG KONG WOULD BE THE MOST APPROPRIATE VENUE FOR A HEARING OF THE ALLEGATIONS A COPY OF JUDGE STANLEY A WEIGEL'S RULING ON BANK BUMIPUTRA'S SUCCESSFUL MOTION TO DISMISS THE SUIT WHICH WAS DATED FEB 19 WAS OBTAINED FROM THE BANK'S US LAWYER THE DECISION STATED THAT HONG KONG IS AN ADEQUATE FORUM FOR THE SUIT AND GENERALLY WOULD SATISFY THE NEEDS OF ALL THE PARTIES CONCERNED IN THE 14MONTHOLD SUIT BAHAMASBASED CAPRI TRADING CORP ALLEGED THAT BANK BUMIPUTRA ITS FORMER CHAIRMAN AND TWO FORMER BANK OFFICERS ACTED IN CONCERT AND IN CONSPIRACY TO FRAUDULENTLY CONCEAL THE LOOTING OF US PROPERTY THAT BELONGED TO THE CARRIAN GROUP A DEFUNCT HONG KONG CONCERN CAPRI WAS IDENTIFIED IN COURT DOCUMENTS AS A MINORITY SHAREHOLDER IN THE CARRIAN UNIT THAT HAD OWNED THE PROPERTY NOTHING MORE WAS REVEALED IT COULDN'T YET BE DETERMINED IF CAPRI INTENDS TO APPEAL JUDGE WEIGEL'S RULING OR WHETHER THE COMPANY WILL REFILE THE SUIT IN HONG KONG CAPRI'S US LAWYER WASN'T AVAILABLE TO COMMENT NOR WERE LAWYERS AND EXECUTIVES AT BANK BUMIPUTRA 9302240102 930224 YOUR MONEY MATTERS TAXES 1993 DON'T WAVE A RED FLAG AT THE IRS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN NORM PETERSON THE BEERGUZZLING BARFLY ON THE TELEVISION SITCOM CHEERS FACED AN INTERNAL REVENUE SERVICE AUDIT EARLIER THIS SEASON HE DID WHAT MOST ANYBODY WOULD DO HE PANICKED NOW ABOUT YOUR WORK DIARY THE ONE FROM 1989 A SMIRKING IRS AGENT SAID AS SHE RIFFLED THROUGH NORM'S PAPERS AND HER FINGERS TAPDANCED ACROSS AN ADDING MACHINE I'D BE WILLING TO BET THAT IF I TOOK IT TO OUR LAB FOR ANALYSIS THEY'D DETERMINE THAT THIS INK IS ABOUT 30 MINUTES OLD SO NORM REPLIED I'M GOING TO BE PENALIZED BECAUSE I COPIED EVERYTHING FOR NEATNESS GETTING AUDITED BY THE IRS IS NO LAUGHING MATTER AND THOUGH THE ODDS ARE PRETTY GOOD THAT IT WON'T HAPPEN TO YOU THIS YEAR SOME ONE MILLION HAPLESS SOULS WILL FIND THE AGENCY REQUESTING MORE INFORMATION ABOUT THINGS ON THEIR TAX RETURNS THAT DON'T LOOK QUITE RIGHT NOTHING STRIKES THE FEAR OF GOD IN PEOPLE LIKE RECEIVING A LETTER FROM THE IRS SAYS THOMAS SHERMAN A TAX PARTNER AT COOPERS & LYBRAND IN MINNEAPOLIS YET TAX ADVISERS SAY THERE ARE STEPS THAT CAN BE TAKEN TO HEDGE THE CHANCES OF BEING AUDITED FIRST BE THOROUGH THERE IS NO SUBSTITUTE FOR THE SIMPLE THINGS LIKE TAKING THE TIME TO BE SURE THE MATH IS RIGHT YOU SIGNED THE FORM AND THAT YOU HAVE ADEQUATE POSTAGE SAYS WASHINGTON TAX LAWYER LAWRENCE GIBBS A FORMER IRS COMMISSIONER ANYTHING THAT CAUSES YOUR RETURN TO BE SINGLED OUT CAN OPEN YOU UP TO BIGGER PROBLEMS SECOND IF THERE IS SOME DISCREPANCY BETWEEN YOUR RECORDS AND ANY INCOME STATEMENT FORM 1099 OR MORTGAGEINTEREST STATEMENT FORM 1098 THAT YOU'VE RECEIVED CLEAR IT UP BEFORE YOU FILE YOUR TAXES OR AT THE LEAST IF THERE IS SOME UNUSUAL SITUATION THAT CAN'T BE RECONCILED WRITE A LETTER TO THE IRS EXPLAINING IT MR SHERMAN ALSO SUGGESTS THAT ANY LETTER TO THE IRS BE SENT BY CERTIFIED MAIL PROOF OF CORRESPONDENCE CAN BECOME VERY IMPORTANT LATER ON HE SAYS THE VAST MAJORITY OF IRS AUDITS ARE TRIGGERED BY THE AGENCY'S COMPUTERS WHICH SCAN EACH OF THE ROUGHLY 115 MILLION TAX RETURNS THAT ARE FILED ANNUALLY AND ASSIGN THEM SPECIAL SCORES BASED ON A COMPLEX MATHEMATICAL MODEL SOME PEOPLE FILE LATE RETURNS APPARENTLY WITH THE IDEA THAT THIS WILL KEEP THEM OUT OF THE AUDIT POOL FORGET IT EVERY RETURN NO MATTER WHEN IT ARRIVES AT THE IRS HAS A CHANCE OF BEING AUDITED THE COMPUTERGENERATED SCORES KNOWN AROUND THE AGENCY AS DIFS FOR DISCRIMINANT FUNCTION REFLECT THE INTERRELATIONSHIP OF VARIOUS ITEMS ON THE RETURN FOR INSTANCE HAS THE TAXPAYER TAKEN A HIGH MORTGAGEINTEREST DEDUCTION COMPARED WITH WHAT OTHER PEOPLE IN THE SAME INCOME BRACKET HAVE TYPICALLY CLAIMED WE LOOK FOR HOW THINGS PLAY AGAINST EACH OTHER EXPLAINS MIKE KILLFOIL THE IRS'S ACTING ASSISTANT COMMISSIONER FOR EXAMINATION THE FINAL DIF SCORE CAN RANGE FROM A NEGATIVE NUMBER INTO THE HUNDREDS A HIGHER SCORE TYPICALLY 500 TO 600 IS LIKELY TO PROMPT AN AUDIT IT GENERALLY TAKES A YEAR OR SO FOR A QUESTIONABLE RETURN TO WORK ITS WAY THROUGH THE PIPELINE AFTER THE IRS DECIDES TO MAKE AN AUDIT THERE ARE SEVERAL WAYS IT CAN PROCEED MOST COMMON IS THAT THE SERVICE WILL CONTACT THE TAXPAYER BY MAIL AND REQUEST MORE INFORMATION THESE ARE KNOWN STRAIGHTFORWARDLY ENOUGH AS CORRESPONDENCE AUDITS OTHER TIMES THE TAXPAYER IS ASKED TO COME TO AN IRS FACILITY IN WHAT IS KNOWN AS AN OFFICE AUDIT THE RAREST TYPE OF AUDIT UNDERTAKEN ABOUT 20 OF THE TIME IS WHEN AN IRS AGENT ACTUALLY COMES TO THE TAXPAYER'S HOME OR PLACE OF BUSINESS THESE FIELD AUDITS ARE DONE WHEN RETURNS ARE PARTICULARLY COMPLICATED AND AGENTS ANTICIPATE THEY WILL NEED EASY ACCESS TO TAXPAYERS' FINANCIAL RECORDS WHEN THE IRS GOES LOOKING FOR A PROBLEM IT USUALLY FINDS ONE ABOUT 8 OF THE AGENCY'S AUDITS RESULT IN A REFUND TO THE TAXPAYER IN 14 OF THE CASES THERE IS NO CHANGE BUT THE REMAINING 78 OF THE TIME THE TAXPAYER ENDS UP PAYING SOMETHING EXTRA TO UNCLE SAM THE AVERAGE PAYMENT 15801 AFTER A FIELD AUDIT AND 2348 AFTER AN OFFICE AUDIT BESIDES ASSIGNING DIF SCORES IRS COMPUTERS WILL LATER CHECK HOW A TAXPAYER'S INCOME AND MORTGAGEINTEREST INFORMATION JIBE WITH THE FORMS SENT DIRECTLY TO THE SERVICE BY EMPLOYERS BANKS AND BROKERAGE FIRMS IF THERE IS A MISMATCH THIS WILL AUTOMATICALLY RESULT IN A NOTICE BEING SENT TO THE TAXPAYER SEEKING AN EXPLANATION AT THE IRS THIS IS OFFICIALLY CONSIDERED JUST A CONTACT BUT MR KILLFOIL POINTS OUT THAT TAXPAYERS I'M SURE PERCEIVE THIS AS AN AUDIT TOO IN THE LAST FISCAL YEAR THE IRS RECEIVED 104 BILLION SOCALLED INFORMATION RETURNS WHICH GENERATED 53 MILLION CONTACTS WITH TAXPAYERS AND 426 BILLION IN BACK TAXES PENALTIES AND INTEREST GIVEN THE WAY THE IRS COMPUTERS WORK TAX ADVISERS SAY THERE ARE SEVERAL OTHER RED FLAGS TAXPAYERS SHOULD BE AWARE OF IF THE RETURN SHOWS A REFUND OF 200000 OR MORE THIS WILL INCREASE THE POSSIBILITY OF AN AUDIT SAYS RUTH LANCASTER MANAGER OF TAX TRAINING AT H&R BLOCK INC RETURNS THAT CLAIM SPECIAL CREDITS ALSO MAY BE MORE CLOSELY SCRUTINIZED SIMILARLY A LARGE NUMBER OF ITEMIZED DEDUCTIONS WILL RAISE EYEBROWS SAYS DONALD ALEXANDER ANOTHER FORMER IRS COMMISSIONER IF THE ALTERNATIVE MINIMUM TAX USED BY PEOPLE WITH LARGE AMOUNTS OF DEDUCTIONS AND EXEMPTIONS IS APPLICABLE THEN FORM 6251 SHOULD BE FILED IF IT ISN'T THAT COULD CAUSE PROBLEMS CASUALTY LOSSES ARE ANOTHER AREA THAT HAS TRADITIONALLY BEEN EXAMINED CLOSELY ONE ITEM TO BE ESPECIALLY CAREFUL WITH THIS YEAR IS HOMEOFFICE DEDUCTIONS IN THE WAKE OF A RECENT SUPREME COURT DECISION THE IRS RECENTLY TIGHTENED UP ON WHAT KINDS OF BUSINESS ACTIVITY CAN QUALIFY BECAUSE OF THESE NEW GUIDELINES I GUARANTEE YOU THAT THIS WILL BE A HOT TOPIC FOR AUDIT ON 1992 RETURNS SAYS SHELDON GANIS OF THE ACCOUNTING FIRM GRANT THORNTON IN THE END SAYS THE IRS'S MR KILLFOIL THE COMPUTER SELECTION PROCESS MAKES IT SO THERE REALLY IS NO FOOLPROOF WAY TO PREVENT THE POSSIBILITY OF AN AUDIT AS A GENERAL RULE THOUGH HE SAYS THAT PEOPLE SHOULD KEEP THINGS SIMPLE WHERE POSSIBLE THE MORE DEDUCTIONS AND SPECIAL CREDITS YOU CLAIM THE GREATER THE ODDS ARE THAT SOMETHING WILL BE OUT OF WHACK AND YOUR DIF SCORE WILL GO UP AT THE SAME TIME TAX EXPERTS HASTEN TO OFFER THIS ADVICE AS WELL DON'T LET THE PROSPECT OF AN AUDIT CAUSE YOU TO CHEAT YOURSELF I DON'T KNOW HOW MANY PEOPLE I'VE TALKED TO MAYBE EVEN MORE SOCIALLY THAN IN MY BUSINESS WHO SAY THAT IF I DO THIS OR THAT I'M GOING TO GET IN TROUBLE' SAYS JOHN DALY DIRECTOR OF TAXES IN ERNST & YOUNG'S RICHMOND OFFICE THAT'S NONSENSE IF YOU'RE ENTITLED TO IT TAKE IT NOTE INCOME ON INDIVIDUAL RETURNS IS ALL BEFORE DEDUCTIONS LOSSES AND OTHER ADJUSTMENTS RESULTS ARE FOR IRS EXAMINATION COVERAGE IN FISCAL YEAR 1992 TOTALS DON'T INCLUDE RESULTS FROM THE IRS'S DOCUMENTMATCHING PROGRAM 9302240101 930224 FORMER FUND BROKER FOR PIONEER IS INDICTED ON WIRE FRAUD CHARGE BOSTON A FORMER MUTUAL FUND BROKER WAS INDICTED ON CHARGES THAT HE TRIED TO BILK HIS CLIENTS OUT OF 550000 LAWRENCE L SIGHTS 50 YEARS OLD WAS INDICTED BY A FEDERAL GRAND JURY ON TWO COUNTS OF WIRE FRAUD ACCORDING TO THE US ATTORNEY'S OFFICE HERE MR SIGHTS AN INDEPENDENT CONTRACTOR FOR PIONEER GROUP INC A BOSTON INVESTMENT COMPANY IS CHARGED WITH FRAUDULENTLY DIRECTING THE SALE OF SHARES IN PIONEER MUTUAL FUNDS THAT WERE OWNED BY CLIENTS IN CENTRAL AMERICA MR SIGHTS A US CITIZEN HAS LIVED IN GUATEMALA FOR THE PAST SEVEN YEARS HE IS ALSO ACCUSED OF SUBMITTING UNAUTHORIZED INSTRUCTIONS TO PIONEER TO TRANSFER 550000 IN PROCEEDS FROM THE SALE OF THE SHARES BY WIRE TO BANKS IN LONDON AND ZURICH IF CONVICTED MR SIGHTS WHO WAS ARRESTED IN BOSTON LAST WEEK FACES A MAXIMUM SENTENCE OF 10 YEARS IN PRISON AND A 500000 FINE 9302240100 930224 WHO'S NEWS INTERACTIVE NETWORK INC INTERACTIVE NETWORK INC MOUNTAIN VIEW CALIF THOMAS FARRELL PRESIDENT OF GANNETT NEW MEDIA GROUP A UNIT OF GANNETT CO WAS NAMED A DIRECTOR OF THIS INTERACTIVE TELEVISION COMPANY INCREASING BOARD MEMBERSHIP TO EIGHT 9302240099 930224 RULE OF LAW FEAR OF LIABILITY SHAPES VACCINATION POLICY BY EDMUND W KITCH IF PRESIDENT CLINTON IS TO ACHIEVE HIS GOAL OF INCREASING AMERICA'S LOW VACCINATION RATE HE WILL HAVE TO OFFER SOMETHING MORE THAN A SIMPLISTIC ATTACK ON DRUG COMPANIES AND AN INCREASE IN FEDERAL SPENDING TO BE SUCCESSFUL HE MUST TAKE THE PROCESS OF MANUFACTURING DISTRIBUTING AND ADMINISTERING VACCINES AWAY FROM THE LAWYERS AND HAND IT BACK TO PEDIATRICIANS AND PUBLICHEALTH PROFESSIONALS AS IT STANDS TODAY THE US VACCINATION PROGRAM IS SHAPED NOT BY THE IMPERATIVE OF DELIVERING VACCINES TO CHILDREN BUT BY LEGAL IMPERATIVES RESULTING FROM THE FEAR OF LIABILITY THE GOVERNMENT'S CURRENT POLICY ON VACCINATION IS AMBIVALENT THE LAW REQUIRES VACCINATION ONLY FOR ENTRY TO SCHOOL THERE IS NO LEGAL REQUIREMENT THAT CHILDREN BE VACCINATED IN ACCORDANCE WITH PHYSICIANS' RECOMMENDATIONS WHICH CALL FOR MOST VACCINATIONS TO BE COMPLETED BY THE AGE OF TWO FOR PRESCHOOL CHILDREN THEN THE LAW VIEWS VACCINATION AS A MATTER TO BE DECIDED BY PARENTS THE VACCINE DISCLOSURE STATEMENTS MANDATED BY FEDERAL LAW EXPLAIN AFTER READING THIS PAMPHLET AND TALKING WITH YOUR DOCTOR OR NURSE YOU CAN DECIDE WHETHER THERE IS ANY REASON FOR YOU OR YOUR CHILD TO DELAY GETTING OR NOT GETTING THE VACCINE THE PARENT IS TO MAKE THIS DECISION RIGHT AFTER LEARNING THAT THERE IS A RARE CHANCE THAT OTHER SERIOUS PROBLEMS AND EVEN DEATH COULD OCCUR AFTER GETTING THE VACCINES TOO MANY PARENTS ARE DOING EXACTLY WHAT THE LAW SAYS THEY CAN DO THEY DECIDE AND TOO MANY ARE DECIDING THAT VACCINATION IS NOT WORTH IT THE INVOLVEMENT OF THE LAW IN VACCINATIONS BEGAN WITH A 1974 APPEALS COURT DECISION REYES V WYETH LABORATORIES THE COURT HELD THAT WYETH WAS LIABLE FOR POLIO CONTRACTED BY A CHILD WHO HAD BEEN GIVEN THE VACCINE BY A PUBLICHEALTH NURSE IN THE VERY TYPE OF ENVIRONMENT WHERE LOW ADMINISTRATION RATES ARE A PROBLEM TODAY AN IMPOVERISHED MINORITY COMMUNITY THE NURSE HAD NOT WARNED THE CHILD'S PARENTS OF THE MINUTE RISK THAT THEIR CHILD COULD GET POLIO WYETH WAS LIABLE RULED JUDGE JOHN MINOR WISDOM BECAUSE AS THE MANUFACTURER OF THE VACCINE IT HAD THE RESPONSIBILITY TO MARKET THE PRODUCT IN A WAY THAT ENSURED THAT THE CHILD'S PARENTS WOULD RECEIVE THE WARNING JUDGE WISDOM'S OPINION ASSUMED THAT THE PARENT NOT THE STATE WAS THE ONE MAKING THE DECISION THE PARENT HAD THE CHOICE AND INFORMED OF THE RISK COULD HAVE CHOSEN NOT TO HAVE THE VACCINE ADMINISTERED THIS CRITICAL ASSUMPTION HAS BEEN ACCEPTED IN ALL SUBSEQUENT EFFORTS TO DEAL WITH THE PROBLEM THE SUBSEQUENT HISTORY OF VACCINATION POLICY IS A HISTORY OF ATTEMPTS TO PROVIDE WHAT JUDGE WISDOM WANTED FIRST CAME GOVERNMENT WARNINGS OF THE RISKS ASSOCIATED WITH VACCINATION THE LATEST VERSION OF THAT EFFORT WENT INTO EFFECT LAST FALL INFORMATION PAMPHLETS BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR DELIVERY TO PARENTS PRIOR TO THE ADMINISTRATION OF VACCINES THESE PAMPHLETS ARE WELLWRITTEN SOPHISTICATED DOCUMENTS WHICH CAREFULLY LAY OUT THE PROS AND CONS OF VACCINATION AND WHICH MAKE IT CLEAR THAT EXPERTS BELIEVE MOST CHILDREN SHOULD BE VACCINATED IN A SOCIAL ENVIRONMENT WHERE THERE IS AN ESTABLISHED PATIENTPHYSICIAN RELATIONSHIP AND WHERE THE PATIENT IS DISPOSED TO TAKE THE ADVICE OF EXPERTS THE PARENTS NO DOUBT WILL CONCLUDE THAT THE VACCINE SHOULD BE ADMINISTERED BUT IN OTHER SOCIAL ENVIRONMENTS IN WHICH THE HEALTH CARE PROVIDER HAS NO RAPPORT WITH THE PATIENTS AND WHERE EXPERTISE MAY BE UNPERSUASIVE THE MESSAGE IS SIMPLE VACCINATION IS A COMPLICATED AND UNCERTAIN BUSINESS FURTHERMORE THE PAPERWORK IMPOSED BY THE WARNING PROCEDURES VIRTUALLY DICTATES THAT THE VACCINES BE ADMINISTERED IN A WELLORGANIZED MEDICAL OFFICE A SUPPORT STAFF IS NEEDED TO PROVIDE THE INFORMATION PAMPHLETS OBTAIN THE NECESSARY SIGNATURE RECORD THE NECESSARY INFORMATION AND STORE THE RESULTING DOCUMENTATION IN A WAY THAT CAN BE EASILY RETRIEVED AS A RESULT VACCINES END UP BEING ADMINISTERED AT SPECIALIZED FACILITIES IN A LIMITED NUMBER OF LOCATIONS IN A TIMECONSUMING PROCESS ALL THIS MAKES IT MORE DIFFICULT FOR PARENTS TO TAKE THEIR CHILDREN TO THE VACCINATION SITE AND INCREASES THE AMOUNT OF TIME REQUIRED ONCE THEY GET THERE THESE PROCEDURES VIRTUALLY FORECLOSE ALTERNATIVE STRATEGIES THAT MIGHT BE EFFECTIVE IN COMMUNITIES WITH LOW VACCINATION RATES FOR INSTANCE A MOBILE VAN MANNED BY A MEDICAL PARAPROFESSIONAL MIGHT BE EXTREMELY EFFECTIVE IN TAKING VACCINATION INTO A COMMUNITY BUT UNDER THE REYESDICTATED WARNING PROCEDURE THE VAN MUST BE NOT A SIMPLE MEDICAL DISPENSARY BUT A MOBILE BUREAUCRACY THE FIRST REACTION OF MANY VACCINE MAKERS TO REYES WAS TO GET OUT OF THE VACCINE BUSINESS THOSE THAT REMAINED HAD TO MAKE FINANCIAL PROVISION FOR LIABILITY TO THAT END CONGRESS IN 1986 PASSED THE VACCINE INJURY COMPENSATION PROGRAM THE IDEA WAS TO PROVIDE THE SECOND THING JUDGE WISDOM SEEMED TO WANT A SYSTEM OF NOFAULT COMPENSATION FOR CHILDREN HURT BY VACCINATION THIS WAS FUNDED BY FEDERAL EXCISE TAXES IMPOSED ON THE SALE OF VACCINES THE ACT REQUIRES A CLAIMANT TO FILE A CLAIM WITH THE COMPENSATION SYSTEM PRIOR TO SUING A MANUFACTURER BUT IF THE CLAIMANT DOES NOT LIKE THE COMPENSATION OFFERED HE CAN PROCEED WITH A LAWSUIT SINCE NO ONE CAN PREDICT WHAT CLAIMANTS WILL DO MANUFACTURERS STILL MUST INSURE AGAINST THE RISK OF LIABILITY IF IN RESPONSE TO MR CLINTON'S LEADERSHIP MORE CHILDREN WERE VACCINATED THAT WOULD LOWER THE DRUG COMPANIES' PERUNIT COSTS VACCINE PRODUCTION IS A LOW MARGINALCOST BUSINESS THE MAJOR COSTS ARE IN RESEARCH AND DEVELOPMENT AND SETTING UP A MANUFACTURING FACILITY ONCE THESE FIXED COSTS ARE EXPENDED THE FACILITY CAN TURN OUT ADDITIONAL UNITS OF THE VACCINE FOR VERY LITTLE IN THIS REGARD THE INDUSTRY IS LIKE THE SOFTWARE INDUSTRY WHICH MAY SPEND LARGE SUMS TO DESIGN A NEW SOFTWARE PROGRAM BUT CAN PRODUCE ADDITIONAL UNITS FOR LITTLE MORE THAN THE COST OF DUPLICATING A FEW DISKETTES PRINTING INSTRUCTIONS AND PACKAGING AND SHIPPING NEITHER INDUSTRY CAN SURVIVE HOWEVER ON PRICES EQUAL TO MARGINAL COST THE ECONOMICS OF THE INDUSTRY MEANS THAT AS OUTPUT RISES PERUNIT COSTS FALL SHARPLY BUT VACCINE OUTPUT IS LIMITED TO THE NUMBER OF DOSES ACTUALLY ADMINISTERED IF VACCINATION RATES RISE SO DOES PRODUCTION AND THE FIXED COSTS CAN BE AMORTIZED OVER LARGER PRODUCTION THE IRONY IS THAT THERE IS NO REAL CONFLICT BETWEEN MR CLINTON AND THE VACCINE MANUFACTURERS BOTH HAVE AN INTEREST IN SEEING HIGHER VACCINATION RATES IF MR CLINTON CAN BREAK THE POLICY GRIDLOCK AND RETURN VACCINATION POLICY TO THE PEDIATRICIANS AND THE PUBLICHEALTH PROFESSIONALS THEN THEY CAN GO AND DO WHAT THEY KNOW HOW TO DO AND HAVE BEEN ABLE TO DO THROUGHOUT THE WORLD VACCINATE THE CHILDREN MR KITCH IS A LAW PROFESSOR AT THE UNIVERSITY OF VIRGINIA 9302240098 930224 REVIEW & OUTLOOK EDITORIAL REINVENTING INDUSTRIAL POLICY IT'S IRONIC THAT ON THE SAME DAY THAT BILL CLINTON UNVEILED HIS GRAND INDUSTRIAL POLICY WE LEARNED ABOUT THE LATEST BRAINSTORM FROM JAPAN'S FAMED MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ACCORDING TO A REPORT IN MONDAY'S JOURNAL MITI WILL SOON BEGIN FUNDING RESEARCH INTO PSYCHIC POWERS INCLUDING TELEPATHY AND CLAIRVOYANCE WE SUPPOSE THAT MAKES SENSE CLAIRVOYANCE IS A USEFUL TRAIT IN AN INDUSTRIAL PLANNER AND IT CERTAINLY HAS BEEN IN SHORT SUPPLY AT MITI THESE ARE THE BUREAUCRATS WHO ADVISED HONDA TO STAY OUT OF THE AUTO BUSINESS AND URGED JAPAN'S ELECTRONICS GIANTS TO SQUANDER BILLIONS ON MEMORY CHIPS MR CLINTON WON'T BE ANY LUCKIER AT THE INDUSTRIAL POLICY OUIJA BOARD INDEED HE'S MORE LIKELY TO SMOTHER SOME OF THE ECONOMY'S MOST VIBRANT SECTORS BY PULLING IT TO UNCLE SAM'S BOSOM KIRK RAAB OF GENENTECH SAYS INDUSTRIAL POLICY IS OK WITH HIM JUST AS LONG AS IT'S NOT DOMINATED BY GOVERNMENT TELL THAT TO CHIEF SENATE APPROPRIATOR BOBBY BYRD HE MAY NOT KNOW A GIGABIT FROM GALLIUM ARSENIDE BUT HE KNOWS WHERE WEST VIRGINIA IS AND YOU CAN BET INDUSTRIAL POLICY DOLLARS WILL WIND UP THERE SOME ARE ALREADY SET TO FLOW TO THE DETROIT AUTO MAKERS FOR CLEAN CARS WHICH NO DOUBT PLEASES MICHIGAN'S JOHN DINGELL WHO SPECIALIZES IN INVESTIGATIONS OF US SCIENTISTS IN FACT BEFORE GETTING INTO A RELATIONSHIP WITH UNCLE SAM OUR HIGHTECH EXECUTIVES MIGHT WANT TO TALK IT OVER WITH THE THOUSANDS OF INNOCENT BANKERS ACCOUNTANTS AND INVESTORS BEING SUED AND RUINED OVER THE FAILURE OF WASHINGTON'S S&L POLICY IT'S A PIPE DREAM THAT POLITICS CAN BE EXCLUDED FROM INDUSTRIAL POLICY MAKING GOVERNMENTS AROUND THE WORLD HAVE A NEARLY UNBLEMISHED RECORD OF PICKING LOSERS AND STICKING WITH THEM FOR POLITICAL REASONS AMERICA POURED 27 BILLION INTO THE QUIXOTIC SYNFUELS BUSINESS BEFORE GIVING UP THE EUROPEAN COMMUNITY IS SPENDING MILLIONS TO DEVELOP AN HDTV STANDARD THAT'S ALREADY OBSOLETE NEXT TO ITS AMERICAN AND JAPANESE RIVALS ON A SWING THROUGH SEATTLE MR CLINTON TOSSED RED MEAT TO BOEING WORKERS OVER THE ISSUE OF AIRBUS SUBSIDIES MANY OF HIS TECHNOCRATS WOULD LIKE NOTHING MORE THAN LAUNCHING THEIR OWN AIRBUSES BUT IT'S NO GREAT FEAT TO CAPTURE MARKETS WHEN EACH PLANE COMES WRAPPED WITH A HUGE KICKBACK FROM EUROPEAN TAXPAYERS MIT'S PAUL KRUGMAN CALLED IT A BEGGARTHYNEIGHBOR AND BEGGARTHYSELF POLICY FOR EUROPE THERE'S A SIMPLE REASON WHY GOVERNMENTS MAKE LOUSY VENTURE CAPITALISTS INDUSTRIES NOT YET BORN DON'T HAVE LOBBYISTS WHILE OLD AND ESTABLISHED ONES HAVE LOTS OF THEM THIS EMERGES FROM A NEW REPORT SHOWING HOW IN TRYING TO PICK WINNERS THE EC'S BUREAUCRATS HAVE CAUSED EUROPE'S LAGGING COMPETITIVENESS ALAN WINTERS OF BIRMINGHAM UNIVERSITY TOLD THE FINANCIAL TIMES THE BULK OF THE SUBSIDIES GO TO THOSE RESISTING CHANGE IN THE TRADITIONAL SECTORS NEVERTHELESS MR CLINTON SEEMS TO BELIEVE THAT BUSINESS NEEDS HIS HELP IN THE DEVELOPMENT COMMERCIALIZATION AND DEPLOYMENT OF NEW TECHNOLOGY WHAT DO THE CLINTONITES THINK HAS BEEN GOING ON THE PAST 20 YEARS AROUND PLACES LIKE SILICON VALLEY ROUTE 128 AND RESEARCH TRIANGLE HANG AROUND STANFORD BERKELEY OR CALTECH AND YOU'LL SOON FIND THAT TOWN AND GOWN ARE SEAMLESSLY INTEGRATED WHEN IT COMES TO SPINNING LAB SCIENCE INTO COMMERCIAL PRODUCTS ULTIMATELY WHAT THE CLINTONITES ARE PROPOSING COULD TURN OUT TO BE A GENUINE FAUSTIAN BARGAIN FOR HIGHTECH COMPANIES MANY ARE LOOKING OVERSEAS THESE DAYS FOR PARTNERS IBM SIEMENS AND TOSHIBA HAVE DECIDED TO DEVELOP THE NEXT GENERATION OF CHIPS WITH EACH OTHER INSTEAD OF WITH THEIR GOVERNMENTS BOEING AND THE AIRBUS CONTRACTORS ARE LINKING UP TO EXPLORE A MEGA JUMBO JET YET PRESIDENTIAL ADVISER LAURA TYSON HAS ARGUED FOR BLOCKING SUCH DEALS BECAUSE THEY MIGHT LET STRATEGIC TECHNOLOGY OUT OF THE BAG MR CLINTON WANTS TO DO MORE WHERE GOVERNMENT SHOULD PROBABLY BE DOING LESS HE WANTS TO SUBSIDIZE INNERCITY BULLET TRAINS WHILE AT THE SAME TIME HIRING A COMMISSION TO FIX THE AIRLINES MAYBE HE OUGHT TO PULL THE PLUG ON BANKRUPT CARRIERS AND WELCOME FOREIGN INVESTORS INTO THE INDUSTRY INSTEAD AND RATHER THAN THE BELTWAY BUILDING DATA NETWORKS WHY NOT FREE UP THE BABY BELLS TO DO IT IT'S ESPECIALLY HARD TO RECONCILE MR CLINTON'S CONCERN FOR HIGHTECH COMPETITIVENESS WITH HIS BASHING OF THE PHARMACEUTICAL INDUSTRY ONE OF THE CROWN JEWELS OF AMERICA'S KNOWLEDGE INDUSTRIES THE STOCK MARKET HAS KNOCKED BILLIONS OF DOLLARS OFF THE INDUSTRY'S CAPITALIZATION SINCE THE ADMINISTRATION CAME TO OFFICE THE DRUG BUSINESS IS HUGELY CAPITALINTENSIVE AND ONE OF AMERICA'S BEST EXPORTERS YOU NEED GOOD POLITICS TO SELL GOOD ECONOMICS BUT WE BEGIN TO SUSPECT THAT EVERYTHING IS JUST POLITICS WITH THE CLINTON ADMINISTRATION THE ENTREPRENEURS OF SILICON VALLEY ARE BASKING IN THE PRESIDENTIAL ATTENTION NOW WE WONDER HOW THEY'LL FEEL ABOUT THEIR NEW PARTNER A YEAR OR TWO DOWN THE ROAD 9302240097 930224 BIOTECHNOLOGY SCIENTISTS PROBE CELLULAR SUICIDE TO FIGHT ILLNESS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON FOR MOST CELLS SUICIDE IS THE BEST WAY TO GO WE HAVE BILLIONS OF CELLS THAT ARE DYING CONTINUOUSLY THROUGH A PREPROGRAMMED HARAKIRI SAYS STUART SCHLOSSMAN A RESEARCHER AT DANAFARBER CANCER INSTITUTE HERE THEY REACH A CERTAIN STAGE OF GROWTH THEY DISAPPEAR THIS BASIC NATURE OF CELLS LARGELY IGNORED FOR YEARS IS BECOMING A HOT AREA IN BIOTECHNOLOGY GENETIC ENGINEERS ARE HOPING TO HARNESS IT TO INDUCE CANCER CELLS TO KILL THEMSELVES OR TO RUB OUT ROGUE IMMUNE CELLS THAT WRECK THE JOINTS OF PEOPLE AFFLICTED WITH RHEUMATOID ARTHRITIS CONVERSELY THEY FORESEE DRUGS THAT SWITCH OFF CELL SUICIDE TO PREVENT THE DEATH OF UNINFECTED IMMUNE CELLS IN AIDS PATIENTS AND OF RELATIVELY UNDAMAGED BRAIN CELLS IN PATIENTS WITH DEGENERATIVE BRAIN DISORDERS SUCH AS PARKINSON'S DISEASE SEVERAL COMPANIES ALREADY HAVE STARTED PIONEERING PROGRAMS IN THE AREA INCLUDING THE UK'S GLAXO HOLDINGS PLC AND CAMBRIDGE NEUROSCIENCE INC CAMBRIDGE MASS MOREOVER AT LEAST TWO BIOTECH STARTUPS ARE FOCUSING ON CELL SUICIDE APOPTOSIS TECHNOLOGY INC FORMED BY IMMUNOGEN INC CAMBRIDGE AND LXR BIOTECHNOLOGY INC RICHMOND CALIF A THIRD COMPANY BEING FORMED IN THE SAN FRANCISCO AREA IDUN PHARMACEUTICALS INC ALSO WILL FOCUS ON PROGRAMMED CELL DEATH AT APOPTOSIS TECHNOLOGY RESEARCHERS AIM TO DEVELOP DRUGS BASED ON A PROTEIN DISCOVERED BY DR SCHLOSSMAN AND COLLEAGUES THAT TRIGGERS APOPTOSIS A COMMON FORM OF CELL SUICIDE NAMED AFTER THE GREEK WORD FOR FALLING OFF IN APOPTOSIS CELLS ACTIVATE ENZYMATIC KNIVES THAT SLASH TO RIBBONS THEIR DNA WHICH CONTROLS THEIR OPERATIONS THEN THEY SHRINK AND BREAK UP THE REMNANTS ARE CONSUMED MATTEROFFACTLY BY OTHER CELLS BY CONTRAST IN NECROSIS CELLS SWELL AND BURST SPEWING OUT THEIR CONTENTS THIS KIND OF DEATH USUALLY OCCURS WHEN CELLS ARE INJURED IN INFLAMED WOUNDS ACCOMPANIED BY TISSUE DAMAGE AND PAIN AND IT OFTEN CAUSES SCARS ALMOST EVERY KIND OF HUMAN CELL GOES GENTLY INTO THE GOOD NIGHT BY SUICIDE THRIVING FOR A TIME THEN QUIETLY TRIGGERING ITS OWN DISINTEGRATION ALL TISSUES SHOW SOME DEGREE OF PROGRAMMED CELL DEATH SAYS JOHN PAPACONSTANTINOU WHO STUDIES CELLULAR EFFECTS OF AGING AT THE UNIVERSITY OF TEXAS IN GALVESTON WHY DO CELLS KILL THEMSELVES FOR THE COMMON GOOD ACCORDING TO ONE THEORY A CELL IS LIKE A TINY CHEMICAL FACTORY IN WHICH MILLIONS OF REACTIONS OCCUR DAILY STATISTICALLY SOME REACTIONS GO BAD SAYS WALTER BLATTLER IMMUNOGEN'S RESEARCH DIRECTOR REPAIR MECHANISMS RIGHT MANY OF THE WRONGS BUT MISTAKES GET BY CAUSING LASTING DAMAGE GRADUALLY THE DAMAGE ACCUMULATES CRIPPLING THE CELL OR WORSE MAKING IT TURN CANCEROUS AND DIVIDE UNCONTROLLABLY THE WAY TO PREVENT BAD CELLS FROM HANGING ON IS TO MAKE THEM DIE AFTER A WHILE SAYS DR BLATTLER INDEED MOST CELLS MAY BE SO SUICIDAL THAT THEY KILL THEMSELVES UNLESS CONTINUALLY SIGNALED BY OTHER CELLS NOT TO DO SO THEORIZED MARTIN RAFF A SCIENTIST AT UNIVERSITY COLLEGE LONDON IN THE JOURNAL NATURE LAST YEAR IT'S AN EXTREME VIEW HE CONCEDES BUT VARIOUS STUDIES SHOW SOMETHING LIKE THIS OCCURS IN THE BRAIN AND OTHER ORGANS AS THEY DEVELOP EXCESS CELLS OR ONES THAT GROW IN THE WRONG PLACE WITHER IN DROVES FOR LACK OF CHEMICAL KISSES BLOWN TO THEM BY OTHER CELLS APOPTOSIS ALSO COMES INTO PLAY TO ELIMINATE IMMUNE CELLS THAT ATTACK ONE'S OWN TISSUES TO SHRINK BREAST TISSUES AFTER LACTATION AND TO MELT AWAY TADPOLES' TAILS AS THEY CHANGE INTO FROGS IN TINY WORMS KNOWN AS C ELEGANS SCIENTISTS HAVE IDENTIFIED GENES THAT CAUSE A CERTAIN SET OF 131 CELLS IN THE ANIMALS TO COMMIT SUICIDE AS THEY DEVELOP NOW RESEARCHERS AT GLAXO AND CAMBRIDGE NEUROSCIENCE ARE SEEKING HUMAN EQUIVALENTS OF THE GENES IN HOPES OF FINDING WAYS TO REGULATE WRONGFUL CELL SUICIDE IN HUMAN DISEASES APOPTOSIS GONE AWRY IS TURNING UP IN A SURPRISINGLY BROAD ARRAY OF SCOURGES STUDIES SUGGEST THAT WHEN NEURONS ARE STRESSED BY LACK OF OXYGEN DURING A STROKE THEY COMMIT SUICIDE EXACERBATING THE BRAIN DAMAGE DIRECTLY CAUSED BY A CEREBRAL BLOOD CLOT SAYS IMMUNOGEN'S DR BLATTLER SIMILARLY RESEARCHERS HAVE DISCOVERED THAT IN AIDS PATIENTS CRITICAL IMMUNE CELLS KILL THEMSELVES EVEN THOUGH THEY AREN'T INFECTED WITH THE VIRUS CONTACT WITH VIRAL PROTEINS IN THE BLOOD SOMEHOW SWITCHES ON THEIR SUICIDE PROGRAMS RECENTLY HARVARD'S DR SHERR HAS FOUND THAT CHEMICALS PRESENT IN SMOG CALLED POLYCYCLIC AROMATIC HYDROCARBONS OR PAHS KILL DEVELOPING IMMUNE CELLS AT VERY LOW DOSES IN THE TEST TUBE BY TRIGGERING APOPTOSIS THE FINDING SUGGESTS THAT NO MORE PAHS THAN A CITY DWELLER GETS ON A MUGGY SUMMER DAY MAY SUPPRESS THE IMMUNE SYSTEM BUT TREATING ILLNESSES WITH DRUGS THAT BLOCK APOPTOSIS WILL BE TRICKY FOR SUCH THERAPIES COULD SWING THE DELICATE BALANCE FROM CELLSUICIDE TO CANCER SCIENTISTS HAVE FOUND FOR EXAMPLE THAT CERTAIN WHITE BLOOD CELLS POSSESS A GENE CALLED BCL2 THAT ENABLES THEM TO RESIST APOPTOSIS THE GENE IMPARTS LONG LIFE TO IMMUNE DEFENDERS THAT FIGHT COMMONLY ENCOUNTERED MICROBIAL INVADERS BUT MUTATIONS SOMETIMES FREE BCL2 FROM ITS NORMAL CONSTRAINTS CAUSING THE DEFENDERS TO MULTIPLY OUT OF CONTROL IN A FORM OF CANCER CALLED LYMPHOMA SUCH TUMOR CELLS ARE IMMORTAL IN THE SENSE THAT THEY HAVE FORGOTTEN HOW TO DIE SAYS IMMUNOGEN'S DR BLATTLER IT'S NOT THAT THEY GROW FASTER OR BETTER AS WE USED TO THINK TO REEDUCATE THEM IN THE ART OF SUICIDE IMMUNOGEN IS PLANNING TO LINK DANAFARBER'S APOPTOSIN THE PROTEIN THAT INDUCES CELL SUICIDE WITH ANTIBODIES THAT SELECTIVELY STICK TO TUMOR CELLS SUCH DRUGS MIGHT MIMIC AND BOOST ONE OF THE BODY'S MAIN DEFENSES AGAINST CANCER KILLER T CELLS WHICH COZY UP TO TUMORS AND SPIT DEATHDEALING APOPTOSIN AT THEM IN THE LONGER TERM THE COMPANY HOPES TO DEVELOP VARIOUS DRUGS TO TURN APOPTOSIS ON AND OFF AS NEEDED TO FINETUNE THE BALANCE BETWEEN CELL DIVISION AND SUBTRACTION SAYS DR BLATTLER HINTS ON HOW TO DO THAT ARE EMERGING IN STUDIES OF VIRUSES THAT APPARENTLY FINETUNE APOPTOSIS FOR THEIR OWN NEFARIOUS ENDS CERTAIN OF THE INFECTIOUS MICROBES FOR INSTANCE MAKE A PROTEIN THAT PREVENTS THEIR HOST CELLS FROM COMMITTING SUICIDE WHILE THE VIRUSES ARE BUSY REPLICATING THEMSELVES WITHIN THE HOSTS SAYS EMORY UNIVERSITY RESEARCHER LINDA GOODING THEN THE VIRUS MAKES ANOTHER PROTEIN TO ALLOW THE HOST CELL TO FALL APART THROUGH APOPTOSIS SHE SAYS RELEASING VIRAL PROGENY FORMED WITHIN 9302240096 930224 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY'S FOREIGN TRADE COMMISSIONER LEON BRITTAN SAID THE US ASSURED HIM IT WOULD COMPLY WITH LAST JULY'S ECUS DEAL ON LIMITING DEVELOPMENT AID FOR AIRCRAFT MAKERS AS PRESIDENT CLINTON HAS ATTACKED EC SUBSIDIES FOR THE AIRBUS INDUSTRIE CONSORTIUM THE SUBJECT IS EXPECTED TO COME UP WHEN HE MEETS TODAY WITH BRITISH PRIME MINISTER JOHN MAJOR IN WASHINGTON MR CLINTON THIS WEEK BLAMED 26 BILLION IN AIRBUS AID FOR THOUSANDS OF JOB CUTS IN THE US AIRCRAFT INDUSTRY MR BRITTAN SAID IT WASN'T CLEAR WHETHER MR CLINTON WAS CRITICIZING PAST US TRADE POLICIES OR WANTED TO EXPAND THE EC AGREEMENT THE US AND THE EC CAN'T WITHDRAW FROM THEIR ACCORD UNTIL AT LEAST JULY 1994 MR MAJOR WHO DENIED AIRBUS WAS UNFAIRLY SUPPORTED IS EXPECTED TO ECHO OTHER EC STATES' RESISTANCE TO THE CLINTON ATTACK ON AIRBUS WHICH ADDED TO TRANSATLANTIC TRADE TENSIONS THE EUROPEANS HAVE COUNTERED PREVIOUS US ACCUSATIONS ON SUBSIDIES BY CLAIMING AMERICAN MANUFACTURERS BENEFITED FROM AS MUCH AS 40 BILLION IN INDIRECT SUBSIDIES THROUGH MILITARY AND OTHER GOVERNMENT PROGRAMS TO LIBERALIZE ITS INSURANCE SECTOR TAIWAN WILL ALLOW MORE FOREIGN INSURERS TO SET UP BRANCHES THE FINANCE MINISTRY IS TAKING APPLICATIONS FOR OPENING BRANCH OFFICES WHEN RESTRICTIONS ARE FURTHER EASED IN THE SECOND HALF THE MOVE COINCIDES WITH TAIWAN'S PLANNED ENTRY INTO THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GLOBAL REGULATORY AND PROMOTION BODY TO PROTECT DOMESTIC FIRMS TAIWAN IN 1960 BARRED NEW INSURERS AND IN 1987 ALLOWED US COMPANIES TO OPERATE THE ISLAND HAS 22 LOCAL AND 20 US INSURERS CHINA WILL LAUNCH A CREDITRATING SYSTEM FOR FINANCIAL INSTITUTIONS TO ENHANCE THEIR ABILITY TO RAISE FUNDS ABROAD THE MANAGEMENT SYSTEM WHICH WILL BE SUPERVISED BY THE STATE ADMINISTRATION OF EXCHANGE CONTROL IS AIMED AT MAKING CREDITWORTHY INSTITUTIONS THE MAJOR CHANNELS FOR LURING FOREIGN MONEY CHINA RAISES FUNDS OVERSEAS THROUGH 10 BANKS AND COMPANIES INCLUDING BANK OF CHINA ITS FOREIGN BANKING ARM THE GOVERNMENT WILL TAKE GLOBAL NORMS INTO ACCOUNT IN SETTING UP AN AUTHORITATIVE CREDIT ORGANIZATION THE RUSSIAN ORTHODOX CHURCH WHICH SUPPORTS EFFORTS TO CREATE A MARKET ECONOMY PLANS TO OPEN ITS OWN BANK FOLLOWING DECADES OF SOVIET REPRESSION THE CHURCH WILL LAUNCH ORTHODOXY BANK TO GENERATE MONEY TO REBUILD CHURCHES AND CREATE RELIGIOUS PROGRAMS THE BANK JOINTLY FOUNDED BY THE MOSCOW PATRIARCHATE AND THE GREEK EGNATIA BANK INTENDS TO OPEN 100 BRANCHES IN MOSCOW ST PETERSBURG AND IN THE BLACK SEA REGION BY 1996 IT HAS STARTUP CAPITAL OF 30 MILLION THE NUMBER OF BRITONS WHO HAVE BEEN OUT OF WORK FOR AT LEAST ONE YEAR EXCEEDED ONE MILLION THE HIGHEST TOTAL IN FIVE YEARS AMID A LINGERING RECESSION BRITAIN'S LONGTERM UNEMPLOYMENT TOTAL ROSE 75000 TO 1030000 IN LAST YEAR'S FOURTH QUARTER LONGTERM JOBLESSNESS ROSE 38 IN THE PAST 12 MONTHS AND MORE THAN DOUBLED SINCE THE RISING TREND BEGAN IN OCTOBER 1990 AFTER PROLONGED STAGNATION AND HIGH INFLATION INDIA'S ECONOMY IS SHOWING SIGNS OF A REVIVAL THAT THE GOVERNMENT EXPECTS WILL QUICKEN IN ITS ANNUAL ECONOMIC SURVEY PRESENTED TO PARLIAMENT AS PART OF THE BUDGET PROCESS THE FINANCE MINISTRY SAID GROSS NATIONAL PRODUCT COULD RISE 42 IN THE YEAR ENDING MARCH 31 UP SUBSTANTIALLY FROM GROWTH OF ABOUT 14 IN FISCAL 1992 THE ECONOMIC REFORMS BEGUN IN JULY 1991 ARE TO BE STRENGTHENED IMPORT TARIFFS WILL BE REDUCED FURTHER TAX RATES COULD BE EASED AND THE TAX SYSTEM SIMPLIFIED AND FINANCESECTOR CHANGES WILL BE PURSUED THE PACE OF ECONOMIC RECOVERY WAS SET BACK BY A SECURITIES SCANDAL AND WIDESPREAD RELIGIOUS STRIFE THAT SLOWED EXPORT GROWTH AND INDUSTRIAL OUTPUT REDUCING REVENUE WITH IMPORTS GROWING AT A 16 ANNUAL RATE THE FISCAL 1993 TRADE DEFICIT COULD TOTAL 7 BILLION BUT INDUSTRIAL GROWTH WHICH SAGGED 01 IN FISCAL 1992 COULD RISE 45 THIS YEAR BECAUSE OF LOWER INTEREST RATES AND EASED CREDIT RESTRAINTS AND INFLATION IS EXPECTED TO DROP TO 8 FROM 136 LAST YEAR NORWAY CITING SOUTH AFRICA'S MOMENTUM TOWARD ENDING APARTHEID SAID IT WOULD LIFT BOYCOTTS ON TRADE AND INVESTMENT MARCH 15 EMBARGOES ON PETROLEUM AND ARMS SALES TO SOUTH AFRICA WILL REMAIN IN PLACE A DUCK IN JAPAN THAT HAD ELUDED RESCUERS FOR MORE THAN A MONTH AFTER BEING IMPALED BY AN ARROW A PLIGHT THAT DREW WIDE ATTENTION WAS RELEASED AFTER RECOVERING FROM SURGERY AT A TOKYO ZOO HOSPITAL AND PRONOUNCED FIT TO MIGRATE 9302240095 930224 BAXTER DEFENSE TEAM PROSECUTORS SET PACT ON EXTENDING INQUIRY CHICAGO AN AGREEMENT BETWEEN FEDERAL PROSECUTORS AND DEFENSE LAWYERS ALLOWS A FEDERAL GRAND JURY INQUIRY INTO BAXTER INTERNATIONAL INC TO EXTEND BEYOND THIS WEEK IF NECESSARY THE THREEYEAR FEDERAL INVESTIGATION INTO BAXTER'S ACTIVITIES IN THE MIDDLE EAST HAD PREVIOUSLY FACED A FEB 25 DEADLINE IMPOSED BY THE FEDERAL STATUTE OF LIMITATIONS THAT DATE HAS BEEN CRUCIAL BECAUSE IT IS PRECISELY FIVE YEARS AFTER 1988 CORRESPONDENCE CONSIDERED IMPORTANT EVIDENCE IN THE CASE ANY INDICTMENT OR DECISION NOT TO INDICT HAD BEEN EXPECTED BEFORE THEN THE INVESTIGATION FOCUSES ON WHETHER BAXTER'S ACTIONS INCLUDING THE SALE OF AN ISRAELI PLANT IN 1988 VIOLATED EITHER THE US ANTIBOYCOTT STATUTE THE FOREIGN CORRUPT PRACTICES ACT OR FEDERAL CONSPIRACY LAWS BAXTER IS THE WORLD'S LARGEST HOSPITAL SUPPLY COMPANY AND IS BASED IN DEERFIELD ILL BOTH THE COMPANY AND G MARSHALL ABBEY ITS SENIOR VICE PRESIDENT AND GENERAL COUNSEL ARE UNDER SCRUTINY IN THE FEDERAL INQUIRY ACCORDING TO PEOPLE FAMILIAR WITH THE CASE BOTH HAVE DENIED ANY WRONGDOING THEY HAVE SAID THE ISRAELI INTRAVENOUSFLUID PLANT WAS SOLD FOR COMMERCIAL PURPOSES NOT TO ESCAPE THE LIST OF COMPANIES BOYCOTTED BY THE DAMASCUS SYRIA ARAB LEAGUE 9302240094 930224 REVIEW & OUTLOOK EDITORIAL THE YEN AGAIN JAPAN'S FINANCE MINISTER BLAMED MONDAY'S COLLAPSE OF THE YEN VALUE OF THE US DOLLAR ON LLOYD BENTSEN THE NEW US TREASURY SECRETARY MR BENTSEN IT SEEMS SAID AT A NEWS CONFERENCE LAST FRIDA I WOULD LIKE TO SEE A STRONGER YEN WITHIN 30 MINUTES THE MARKETS COMPLIED HE NOW HAS THE STRONGEST YEN OR THE WEAKEST YEN VALUE OF A US DOLLAR IF YOU PREFER ON RECORD THE DOLLAR HAS SPENT THE PAST SEVERAL DAYS BOBBING AROUND 116 YEN GOVERNMENT OFFICIALS LIKE TO ACKNOWLEDGE MARKET FORCES WHEN IT SUITS THEIR PURPOSES AND FINANCE MINISTER YOSHIRO HAYASHI SAID THE BENTSEN REMARKS HAD FURTHER AGITATED AN ALREADY NERVOUS FOREIGNEXCHANGE MARKET BUT FINANCE MINISTRIES AND CENTRAL BANKS ARE NOT WITHOUT SOME INFLUENCE OVER THEIR OWN CURRENCIES SO A MORE SOPHISTICATED EXPLANATION PROBABLY IS NEEDED THE MORE SOPHISTICATED EXPLANATION SAYS SOMETHING ABOUT THE GAMES PEOPLE PLAY IN THE CONDUCT OF MONETARY POLICY JAPAN FOR INSTANCE FACES A POLITICAL PROBLEM THIS SATURDAY THE GROUP OF SEVEN MEETS IN LONDON THE JAPANESE WOULD LIKE TO BE ABLE TO GO INTO THAT MEETING ABLE TO SAY THAT THEY ARE DOING THEIR BEST TO BRING DOWN THE JAPANESE TRADE SURPLUS WHICH HAS BALLOONED AS JAPANESE IMPORT DEMAND HAS FELT THE IMPACT OF REDUCED ECONOMIC GROWTH BUT IN THE LITURGY OF AMERICAN PROTECTIONISTS A HIGHER CURRENCY IS SUPPOSED TO CORRECT A TRADE SURPLUS THOUGH THERE IS LITTLE EVIDENCE THAT IT DOES IN ANY SIGNIFICANT WAY OF COURSE A LOT OF PEOPLE ARE STILL WAITING FOR THE US TRADE SURPLUS THAT WAS SUPPOSED TO RESULT FROM THE G7 PLAZA ACCORD OF 1985 WHEN THE DOLLAR BEGAN ITS SLIDE TOWARD A YEN VALUE TODAY THAT IS LESS THAN HALF THE VALUE THEN THAT IS NOT TO SAY THERE WILL BE NO ADVERSE EFFECTS ON JAPAN FROM THE FURTHER RISE OF THE YEN WHICH IS WHY MR HAYASHI PREFERRED TO BLAME MARKET FORCES RATHER THAN ADMITTING TO ANY DELIBERATE YENBOOSTING POLICY THE HIGHER YEN WILL FURTHER REDUCE THE CASH FLOW OF JAPANESE MULTINATIONALS MANY OF WHICH ALREADY ARE REPORTING SHARPLY REDUCED 1992 EARNINGS AND IT WILL MEAN FURTHER EXCHANGE LOSSES FOR JAPAN'S INSURANCE COMPANIES WHICH HAVE ENORMOUS OVERSEAS PORTFOLIO INVESTMENTS BY SOME ESTIMATES A 114YEN DOLLAR COULD BE A VERY SERIOUS MATTER FOR THE INSURANCE COMPANIES BUT THERE IS A PLUS SIDE THE STRONG YEN BOLSTERS THE CAPITALTOASSET RATIOS OF JAPANESE BANKS BY REDUCING THE YEN VALUE OF OVERSEAS ASSETS SINCE ASSETS AND LIABILITIES IN OVERSEAS BRANCHES ARE BALANCED THERE IS TECHNICALLY AT LEAST NO EXCHANGE LOSS SOME MARKET GUESSERS ARE ESTIMATING THAT JAPAN WILL KEEP THE YEN HIGH UNTIL THE END OF THE FINANCIAL YEAR ON MARCH 31 ENABLING BANKS TO MEET BANK OF INTERNATIONAL SETTLEMENT CAPITAL REQUIREMENTS AFTER THAT WHO KNOWS BUT THE MOST IMMEDIATE FEAR IS OF BEING MUGGED OVER TRADE POLICY AT THE LONDON G7 MEETING INDEED WHAT IS MOST DISTURBING ABOUT THE RECENT GYRATIONS IN THE YENDOLLAR EXCHANGE RATE AND OUR SUSPICIONS THAT THEY ARE POLICYGENERATED IS THAT THEY REFLECT A MANIPULATIVE POLICY TOWARD SOMETHING THAT SHOULD BE A STANDARD OF VALUE G7 MEETINGS FOR ALL THE ONCEFOND HOPES OF INTERNATIONAL MONETARY AND FISCAL POLICY COORDINATION TODAY SELDOM REFLECT SERIOUS EFFORTS TO DEAL WITH THE ENORMOUS EXCHANGE RISKS BROUGHT ABOUT BY DIVERGENT MONETARY POLICIES AS A RESULT THE WORLD IS DRAWING FURTHER AND FURTHER AWAY FROM WHAT ONCE SEEMED LIKE AN ACHIEVABLE GOAL A RELATIVELY STABLE INTERNATIONAL MONETARY SYSTEM 9302240093 930224 BUSINESS BRIEF INTEGRA FINANCIAL CORP BANK TO POST ONETIME GAIN FOR ACCOUNTING CHANGES INTEGRA FINANCIAL CORP SAID IT WILL POST A ONETIME NET GAIN OF 60 MILLION OR 178 A SHARE TO FIRSTQUARTER NET INCOME AS A RESULT OF THE ADOPTION OF TWO ACCOUNTING CHANGES IN THE 1992 FIRST QUARTER INTEGRA HAD NET INCOME OF 197 MILLION OR 80 CENTS A SHARE INTEGRA A PITTSBURGH BANKING COMPANY SAID ADOPTION OF ONE ACCOUNTING CHANGE WILL RESULT IN 65 MILLION OF DEFERRED INCOME TAX BENEFITS RECORDED PRIMARILY AS A RESULT OF ITS RECENT ACQUISITION OF EQUIMARK CORP ADOPTION OF ANOTHER ACCOUNTING CHANGE FOR POSTRETIREMENT BENEFITS WILL RESULT IN A ONETIME AFTERTAX CHARGE OF 5 MILLION INTEGRA SAID 9302240092 930224 NORDSTROM'S STOCK PLUNGES ON DROP IN PROFIT FORECAST BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL NORDSTROM INC'S STOCK PLUNGED 15 AFTER THE RETAILER CAUTIONED ANALYSTS THAT FISCAL 1994 EARNINGS COULD FALL SHORT OF WALL STREET'S 2ASHARE PROJECTION WE JUST DON'T BELIEVE WE'RE GOING TO HAVE THE KIND OF SALES THIS YEAR THAT WOULD RESULT IN THAT LEVEL OF EARNINGS SAID THE COMPANY'S CHIEF FINANCIAL OFFICER JOHN A GOESLING THE SEATTLE RETAILER'S EARNINGS WOULD HAVE TO CLIMB 17 FROM ITS OPERATING RESULTS FOR THE FISCAL YEAR ENDED JAN 31 1993 TO REACH 2 A SHARE IN FISCAL 1994 NORDSTROM'S WARNING FOLLOWED ITS RELEASE MONDAY OF SLIGHTLY BETTERTHANEXPECTED FOURTHQUARTER EARNINGS IN NATIONAL OVERTHECOUNTER TRADING NORDSTROM SHARES FELL 575 A SHARE TO CLOSE AT 32875 WALL STREET BATTERED RETAIL STOCKS ACROSS THE BOARD PARTLY BECAUSE OF CONCERN THAT PRESIDENT CLINTON'S PROPOSED TAX INCREASES WOULD SCARE CONSUMERS BACK INTO THEIR PENNYPINCHING MODE ADDING TO THE CONCERN WAS THE CONFERENCE BOARD'S ANNOUNCEMENT YESTERDAY THAT ITS CONSUMER CONFIDENCE INDEX DROPPED MORE THAN EIGHT POINTS IN THE WEEKS PRECEDING MR CLINTON'S SPEECH FOR NORDSTROM ANALYSTS HAD BASED THEIR PROJECTION ON THE EXPECTATION THAT THE COMPANY'S FISCAL 1994 SAMESTORE SALES WOULD INCREASE 5 TO 6 BUT MR GOESLING SAID SUCH SALES AT STORES OPEN AT LEAST A YEAR WOULD LIKELY RISE ABOUT 3 NORDSTROM GENERALLY CATERS TO AN UPPERINCOME MARKET IN GENERAL THE IMPACT OF CLINTON'S PROGRAM IS UNCLEAR BUT IT'S PRETTY CERTAIN THE PLAN WILL HAVE AN ADVERSE IMPACT ON HIGHEND SPENDING SAID ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN & SONS MR BUCHANAN LOWERED HIS FISCAL 1994 ESTIMATE FOR NORDSTROM TO 189 FROM 2 FOLLOWING MR CLINTON'S SPEECH LAST WEEK AND LOWERED IT AGAIN YESTERDAY TO 185 ANALYSTS ALSO HAD EXPECTED NORDSTROM'S PROFIT MARGINS TO IMPROVE BECAUSE THE RETAILER DOESN'T PLAN TO OPEN ANY NEW STORES THIS YEAR BUT NORDSTROM TOLD THEM MONDAY THAT ANY IMPROVEMENT WOULD BE PARTLY OFFSET BY INCREASED OPERATING EXPENSES DRIVEN BY A THREEYEAR 100 MILLION PROGRAM TO RENOVATE EXISTING STORES NORDSTROM ALSO WILL SPEND 10 MILLION TO 15 MILLION THIS YEAR TO INSTALL NEW INVENTORY MANAGEMENT SYSTEMS MR GOESLING SAID IN THE LAST WEEK RETAIL INDUSTRY STOCKS HAVE LOST ABOUT 5 OF THEIR VALUE OR ONE MONTH'S WORTH OF STRONG PERFORMANCE SAID THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN RETAILSTOCK GROWTH HAD BEEN FUELED BY STRONG CHRISTMAS AND JANUARY SALES AND AN UPTICK IN CONSUMER CONFIDENCE BUT SALES SO FAR THIS MONTH ARE BEING ROCKED BY UNCERTAINTY OVER MR CLINTON'S PLAN AND POOR WEATHER AS WELL AS A NATURAL SLOWDOWN AFTER HEAVIERTHANEXPECTED HOLIDAY SPENDING 9302240091 930224 TECHNOLOGY & MEDICINE BALDNESS IN MALES AND HEART DISEASE MAY BE CONNECTED THOSE WITH LEAST HAIR ON TOP ARE 34 TIMES MORE LIKELY TO HAVE ATTACK STUDY SAYS BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL IF THERE WAS ANY DOUBT THAT LIFE ISN'T FAIR A NEW MEDICAL REPORT INDICATES THAT BALD MEN RUN A GREATER RISK OF HEART ATTACK THAN THEIR BLOWDRIED COUNTERPARTS THE STUDY IN THE CURRENT JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION ISSUE APPEARS TO BE PARTICULARLY DISCOURAGING NEWS FOR MEN WHO HAVE LOST MOST OR ALL OF THEIR HAIR SUCH MEN AS OPPOSED TO THOSE WITH RECEDING HAIR LINES ARE ABOUT THREE TIMES MORE LIKELY TO FACE A HEART ATTACK THAN MEN WITH NO HAIR LOSS WHILE THE FINDINGS ARE THE LATEST IN A SEEMINGLY ENDLESS STREAM OF FACTORS STRESS WEIGHT VARIOUS FOODS AND DRINKS EVEN CREASES IN EAR LOBES THAT ARE SUPPOSEDLY LINKED TO HIGHER RISKS OF HEART DISEASE THE 35 MILLION MEN IN THE US WHO HAVE LITTLE NEED FOR COMBS OR HAIR BRUSHES SHOULDN'T BE OVERLY CONCERNED SAID DR SAMUEL M LESKO THE LEAD AUTHOR OF THE STUDY AND AN ASSISTANT PROFESSOR AT BOSTON UNIVERSITY'S SCHOOL OF PUBLIC HEALTH AN ASSOCIATION BETWEEN BALDNESS AND HEART DISEASE CERTAINLY APPEARS TO EXIST HE SAID BUT BALDNESS IS STILL A MINOR PLAYER WHEN COMPARED WITH SMOKING OR HIGH CHOLESTEROL LEVELS OR HIGH BLOOD PRESSURE HE ADDED INDEED THE GREATEST BENEFIT OF THE STUDY ACCORDING TO MIKE MAHONEY EXECUTIVE DIRECTOR OF THE AMERICAN HAIR LOSS COUNCIL A NONPROFIT GROUP IN TYLER TEXAS THAT HELPS EVALUATE TREATMENTS FOR HAIR LOSS MAY BE TO SPUR YOUNG MEN WHO MIGHT HAVE IGNORED THE PROBLEM OF HEART DISEASE TO ASK THEIR DOCTORS ABOUT HYPERTENSION AND OTHER KNOWN CONTRIBUTORS TO HEART PROBLEMS RESEARCHERS WERE PROMPTED TO LOOK AT THE POTENTIAL LINKS BETWEEN HAIR LOSS AND HEART DISEASE FOR SEVERAL REASONS INCLUDING THE FACT THAT THE TWO CONDITIONS ARE COMMON IN MEN WHAT'S MORE THE INCREASED USE OF THE DRUG MINOXIDIL TO STIMULATE HAIR GROWTH HAS RAISED THE QUESTION OF WHETHER ANY HEART PROBLEMS ATTRIBUTED TO USE OF THE PRODUCT MIGHT IN FACT BE ACCOUNTED FOR BY MALE PATTERN BALDNESS UPJOHN CO A MAKER OF MINOXIDIL PROVIDED A GRANT FOR THE STUDY BETWEEN 1989 AND 1991 RESEARCHERS COLLECTED DATA FROM 1437 MEN 21 TO 54 YEARS OLD IN 35 HOSPITALS IN MASSACHUSETTS AND RHODE ISLAND DIVIDED INTO TWO GROUPS THOSE ADMITTED WITH A FIRST HEART ATTACK AND A CONTROL GROUP ADMITTED FOR REASONS OTHER THAN CARDIAC CARE THE MEN WERE EVALUATED BY MEANS OF A BALDNESS SCALE WHERE A ONE INDICATED NO HAIR LOSS AND A FIVE INDICATED EXTREME HAIR LOSS THE RESULTS THE LESS HAIR THE HIGHER THE RISK OF HEART ATTACK ABOUT 13 TIMES GREATER FOR MEN WITH MILD OR MODERATE HAIR LOSS AND ABOUT 34 TIMES GREATER FOR MEN WITH SEVERE HAIR LOSS DR PETER WILSON A DIRECTOR AT THE FRAMINGHAM HEART STUDY IN FRAMINGHAM MASS CALLED THE FINDINGS PROVOCATIVE BUT SAID THE TRUTH IS PROBABLY MORE SUBTLE PROBABLY CERTAIN SUBGROUPS OF THESE MEN ARE AT HIGHER RISK IDEALLY HE SAID THE FINDINGS WILL BE REPRODUCED IN NEW STUDIES AND AVENUES WILL OPEN UP TO FOLLOW SOME NEW IDEAS IN HEART DISEASE PARTICULARLY THE HORMONAL ROUTE DR LESKO CONCEDED THE STUDY SHEDS LITTLE LIGHT ON THE MECHANISM THAT MIGHT LINK BALDNESS TO HEART ATTACKS THERE'S SOME EVIDENCE HE SAID THAT THE PRESENCE OF DIHYDROTESTOSTERONE A BYPRODUCT OF THE SEX HORMONE IS TIED TO BOTH CONDITIONS BUT THE CONNECTION HE ADDED IS SPECULATIVE LESS CIRCUMSPECT IN HIS OPINIONS IS JOHN T CAPPS III THE FOUNDER OF BALDHEADED MEN OF AMERICA A SELFHELP GROUP IN MOREHEAD CITY NC WHEN ASKED ABOUT THE REPORT MR CAPPS ASSURED A CALLER THAT BALDHEADED MEN DON'T USE THEIR HORMONES TO GROW HAIR RATHER THEY USE THEM FOR MORE IMPORTANT THINGS ACCORDINGLY WE'RE MORE ACTIVE HE SAID AND THAT MAY BE THE REASON WHY WE HAVE MORE HEART ATTACKS 9302240090 930224 INTERNATIONAL PHILIPS ELECTRONICS AND AFFILIATE GRUNDIG PLAN CLOSER ALLIANCE SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND ITS UNPROFITABLE GERMAN AFFILIATE GRUNDIG AG PLAN TO TIGHTEN THEIR BUSINESS COOPERATION SUBSTANTIALLY AND PHILIPS PLANS TO TREAT GRUNDIG AS A WHOLLY OWNED SUBSIDIARY ON ITS BOOKS PHILIPS WHICH HOLDS A 316 EQUITY STAKE IN AND MANAGEMENT CONTROL OVER FAMILYOWNED GRUNDIG SAID THE TWO COMPANIES ARE MOVING EVEN CLOSER TOGETHER IN ORDER TO SURVIVE IN A DEPRESSED AND FIERCELY COMPETITIVE CONSUMER ELECTRONICS MARKET PHILIPS WHICH HAS BEEN TALLYING BIG LOSSES ON ITS OWN CONSUMER ELECTRONICS OPERATIONS SAID THAT DRASTIC COST REDUCTIONS CAN ONLY BE ACHIEVED IF BOTH COMPANIES AVOID DUPLICATION OF EFFORTS ESPECIALLY IN THE AREAS OF DEVELOPMENT AND MANUFACTURING PHILIPS BASED IN EINDHOVEN NETHERLANDS DECLINED TO GIVE DETAILS ABOUT THE MEASURES IT AND GRUNDIG WILL BE TAKING BUT IMPLICIT IN THE STATEMENT WAS THE IDEA OF JOB CUTS AND FACTORY CLOSURES GRUNDIG BASED IN FUERTH GERMANY EMPLOYS ABOUT 17200 PEOPLE WHILE PHILIPS EMPLOYED 237500 PEOPLE WORLDWIDE AS OF SEPT GRUNDIG WHOSE FISCAL YEAR ENDS MARCH 31 EXPECTS TO POST A LOSS OF ABOUT 200 MILLION MARKS 123 MILLION ON SALES OF 375 BILLION MARKS A PHILIPS SPOKESMAN SAID BUT HE QUICKLY ADDED THAT BECAUSE OF THE COMPLEXITY OF HOW PHILIPS ACCOUNTS FOR ITS EXPOSURE TO GRUNDIG THAT LOSS MIGHT NOT SHOW UP ON PHILIPS'S BOOKS AS A 200 MILLION MARK LOSS 9302240089 930224 MARKETING BRIEF NOTED OLYMPICS TIME INC SIGNED A LETTER OF INTENT TO RENEW ITS SPONSORSHIP TIES TO THE INTERNATIONAL OLYMPIC COMMITTEE THE TIME WARNER INC UNIT WILL BECOME A SPONSOR OF THE 1994 WINTER GAMES IN LILLEHAMMER NORWAY THE 1996 SUMMER OLYMPICS IN ATLANTA AND THE US OLYMPIC COMMITTEE TERMS WEREN'T DISCLOSED WHO'S NEWS COWLES MEDIA CO MINNEAPOLIS NAMED BRUCE A BARNET PRESIDENT AND CHIEF EXECUTIVE OF ITS MAGAZINES UNIT WHICH PUBLISHES 20 SPECIALINTEREST CONSUMER TITLES HE FORMERLY WAS WITH RIORDAN PUBLISHING CO AND TIME INC 9302240088 930224 MARETING & MEDIA AMERICAN EXPRESS SELLS LA STYLE TO BUZZ MAGAZINE REGIONAL PUBLICATION WILL BITE THE DUST JOINING OTHERS HIT BY CALIFORNIA TROUBLES BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES BUZZ MAGAZINE SAID IT ACQUIRED LA STYLE A RIVAL PUBLICATION OWNED BY AMERICAN EXPRESS CO AND PLANS TO SHUT IT DOWN THUS REDUCING THE RANKS OF TRENDY REGIONAL MAGAZINES IN LOS ANGELES TERMS WEREN'T DISCLOSED AMERICAN EXPRESS PUT LA STYLE ON THE BLOCK IN DECEMBER ALONG WITH CITY MAGAZINES IN DALLAS AND ATLANTA THE SALE CONTINUES THE COMPANY'S FLIGHT FROM THE MAGAZINE BUSINESS IT FOLDED ITS NEW YORK WOMAN EARLY LAST YEAR AND LATE LAST YEAR IN A JOINT VENTURE AGREEMENT SAID IT PLANS TO TRANSFER MANAGEMENT OF ITS REMAINING MAGAZINE OPERATIONS TO THE PUBLISHING UNIT OF TIME WARNER INC BUZZ SAID THE ADDITION OF LA STYLE'S SUBSCRIBERS WILL BRING ITS CIRCULATION TO MORE THAN 100000 BUZZ ALSO SAID IT WILL INCORPORATE PARTS OF LA STYLE'S EDITORIAL SLANT BY EMPHASIZING MORE FASHION COVERAGE LA STYLE IS THE LATEST OF A HOST OF MAGAZINES TO FOLD IN SOUTHERN CALIFORNIA AFTER 15 YEARS CALIFORNIA MAGAZINE EXPIRED IN 1991 UNABLE TO UNITE A DIVERSE STATE HURT BY CALIFORNIA RECESSION THE LOCAL RECESSION HAS HURT EVEN THE REIGNING CITY MAGAZINE CAPITAL CITIES/ABC'S 33YEAROLD LOS ANGELES WHICH UNTIL SEVERAL YEARS AGO WAS KNOWN FOR ADBLOATED 300PAGE ISSUES BUT AD PAGES HAVE DROPPED SINCE 1989 TO 1093 FROM 1840 ACCORDING TO MEDIA INDUSTRY NEWSLETTER WHILE CIRCULATION IS ABOUT 165000 BUZZ WAS FOUNDED AS A HIPPER ALTERNATIVE TO LOS ANGELES MAGAZINE IN 1990 WITH THE BACKING OF COMPUTER SOFTWARE MAGNATE LAWRENCE ELLISON OF ORACLE SYSTEMS CORP ITS MOTTO THE TALK OF LOS ANGELES BUT WHEN SEED MONEY SOON WAS EXHAUSTED TALK WAS BARELY AUDIBLE AND BUZZ QUICKLY SUSPENDED PUBLICATION IT REEMERGED WITH THE AID OF THAI MEDIA ENTREPRENEUR SONDHI LIMTHONGKUL WHO INVESTED ALMOST 15 MILLION HE STILL RETAINS A MAJORITY STAKE BUZZ WHICH DOESN'T FILE CIRCULATION FIGURES WITH THE AUDIT BUREAU OF CIRCULATION CLAIMS 68000 PAID SUBSCRIBERS ITS AD PAGES INCREASED SLIGHTLY FROM 28 TO 33 FOR THE BEGINNING OF THIS YEAR WHEN IT SWITCHED FROM BIMONTHLY TO 10 ISSUES A YEAR MAGAZINE COFOUNDER EDEN COLLINSWORTH SAID IN AN INTERVIEW WE'RE THE ONLY UPSCALE SOPHISTICATED CITY PUBLICATION IN LOS ANGELES OVER 50 KNOWN FOR ITS AVANTGARDE DESIGN LA STYLE ATTRACTED A BUZZ IN THE LATE 1980S BUT ITS ADVERTISING PAGES HAVE PLUNGED BY MORE THAN 50 SINCE 1990 ACCORDING TO MEDIA INDUSTRY NEWSLETTER SOME IN THE MAGAZINE COMMUNITY HERE SAY THAT AMERICAN EXPRESS AND THE ORIGINAL LA STYLE WERE AN UNCOMFORTABLE FIT THEY ARGUE THAT A CORPORATION KNOWN FOR DELIVERING SUCH MAGAZINES AS TRAVEL & LEISURE TO ITS CARDHOLDING SUBSCRIBERS COULDN'T MESH WITH THE HIGHGLOSS SENSIBILITIES OF LA STYLE AT THE TIME OF THE AMERICAN EXPRESS ACQUISITION IN 1988 LA STYLE'S FOUNDER JOIE DAVIDOW SAID THE MAGAZINE'S MAIN FOCUS WASN'T MOVIE STARS THE REAL CELEBRITIES HERE ARE ARTISTS FASHION PHOTOGRAPHERS AND RESTAURANT OWNERS SAID MS DAVIDOW MOVIE STARS SEEM OLD OLD LA STYLE'S FINAL ISSUES PLACED CELEBRITIES PROMINENTLY ON ITS COVERS 9302240087 930224 IBM'S USE OF TWO FIRMS TO RECRUIT A CEO IS DOUBLE TROUBLE FOR OTHER COMPANIES BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL WHEN IBM RECENTLY HIRED TWO RIVAL RECRUITERS TO FIND IT A CHIEF EXECUTIVE IT MAY HAVE HELPED DISMANTLE ONE OF CORPORATE AMERICA'S FAVORITE DEFENSES AGAINST RAIDS ON THEIR EXECUTIVE TALENT ACCORDING TO THE RULES OF THE ASSOCIATION OF EXECUTIVE RECRUITER CONSULTANTS A RECRUITING FIRM THAT GETS AN ASSIGNMENT AT A COMPANY MUST REGARD THAT COMPANY'S EXECUTIVES AS OFFLIMITS FOR TWO YEARS THE EXECUTIVE RECRUITED TO FILL THE ASSIGNMENT IS OFFLIMITS TO THE RECRUITER FOREVER FOR YEARS COUNTLESS COMPANIES HAVE MADE A POINT OF EMPLOYING A NUMBER OF RECRUITERS THOUGH NOT FOR THE SAME ASSIGNMENT TO GET ON THE OFFLIMITS LISTS OF AS MANY SEARCH FIRMS AS POSSIBLE BY HIRING TWO RECRUITERS TO FILL A JOB A COMPANY CAN GET AROUND SOME OF THESE DEFENSES AS INTERNATIONAL BUSINESS MACHINES CORP IS NOW DOING ONE RECRUITER SIMPLY APPROACHES EXECUTIVES WHO ARE OFFLIMITS TO THE OTHER FOR INSTANCE GERARD R ROCHE THE HEIDRICK & STRUGGLES INC CHAIRMAN WHO IS ONEHALF OF THE THE IBM SEARCH TEAM IS BANNED FROM RECRUITING LAWRENCE BOSSIDY ALLIEDSIGNAL INC'S CHAIRMAN AND CHIEF EXECUTIVE AND PAUL STERN THE RECENTLY RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF NORTHERN TELECOM LTD BOTH MEN ARE RUMORED TO BE CANDIDATES FOR THE IBM JOB BUT MR ROCHE'S SEARCH PARTNER THOMAS J NEFF WHO IS PRESIDENT OF SPENCERSTUART CAN TALK TO THEM ALL HE WANTS HEIDRICK AND SPENCERSTUART EACH HAVE AT LEAST 1000 COMPANIES ON THEIR OFFLIMITS LISTS ESTIMATES EXECUTIVE RECRUITER NEWS THEN I SAW IT WAS ABSOLUTELY DIABOLICALLY CUNNING IBM HAS OPENED UP THE WHOLE CORPORATE WORLD FOR THEIR SEARCH HE THINKS OTHER COMPANIES ARE BOUND TO FOLLOW IBM'S LEAD THIS PROSPECT HAS SOME COMPANIES WRINGING THEIR HANDS ONE BIOTECHNOLOGY COMPANY IN NEW JERSEY HAS CONTRACTS WITH THREE SEARCH FIRMS ONE SPECIALIZES IN THE BIOTECHNOLOGY FIELD ANOTHER FOCUSES ON TOP MANAGEMENT AND THE THIRD IS HELPING IT FIND FEMALE MANAGERS THE STRATEGY HAS HELPED US FROM BEING RAIDED CONFESSES A HUMANRESOURCES MANAGER HOWEVER THE MANAGER SAYS A TWOFIRM SEARCH BY ANOTHER COMPANY IS BOUND TO MAKE US MORE VULNERABLE A FEW YEARS AGO A SEARCH FIRM WOULDN'T BE APT TO JOIN FORCES WITH A COMPETITOR BUT HARD TIMES HAVE ALTERED THE INDUSTRY ACCORDING TO EXECUTIVE RECRUITER NEWS SEARCHINDUSTRY REVENUE STAGNATED LAST YEAR AFTER FALLING 76 IN 1991 FROM THE PREVIOUS YEAR THIS COMPARES WITH REVENUE GROWTH RATES OF MORE THAN 10 A YEAR IN THE LATE 1980S THE NEWSLETTER ADDS TO COPE WITH THESE LEANER TIMES SOME SEARCH FIRMS HAVE DISCOUNTED FEES THE STANDARD RATE IS 33 OF AN EXECUTIVE'S CASH COMPENSATION FOR THE FIRST YEAR OTHERS THAT HAD OPERATED STRICTLY ON A RETAINER BASIS ARE QUIETLY ACCEPTING ASSIGNMENTS ON A CONTINGENCY BASIS RUSSELL REYNOLDS ASSOCIATES INC AND OTHERS HAVE CUT STAFF NOW MANY INDUSTRY INSIDERS BELIEVE RECRUITERS RELUCTANTLY WILL BEGIN SHARING ASSIGNMENTS AND FEES IF PRESSED BY COMPANIES THE LAST TWO YEARS HAVE BEEN THE PITS FOR THE SEARCH INDUSTRY SAYS JAMES H KENNEDY PUBLISHER OF EXECUTIVE RECRUITER NEWS THUS SHARING ASSIGNMENTS HE SAYS MAKES GOOD ECONOMIC SENSE NOW FOR HEIDRICK AND SPENCERSTUART THE SHARED IBM ASSIGNMENT MAKES PLENTY OF ECONOMIC SENSE THE COMPUTER GIANT IS PAYING EACH CONCERN A LOFTY 500000 BY COMPARISON SPENCERSTUART RECEIVED ABOUT 400000 WHEN MR NEFF HELPED RJR NABISCO FIND A NEW BOSS IN 1989 BEYOND THE MONEY THOUGH THE IBM ASSIGNMENT IS A MATTER OF PRESTIGE EXPLAINS JOHN SIBBALD A CHICAGO RECRUITER THIS COULD GO DOWN AS ONE OF THE MOST IMPORTANT SEARCHES OF THE DECADE IBM SAYS TIME PRESSURE PROMPTED IT TO HIRE TWO RECRUITERS TO GET THE BEST POSSIBLE CANDIDATES AS QUICKLY AS POSSIBLE WE DECIDED WE NEEDED TO GET TWO SEARCH FIRMS EXPLAINS IBM SPOKESMAN ROGER BOLTON THE COMPANY WANTS TO FIND A NEW CHIEF EXECUTIVE OFFICER IN TIME FOR ITS ANNUAL MEETING IN APRIL IBM HAS BANNED MR ROCHE AND MR NEFF FROM SPEAKING TO THE PRESS DURING THE SEARCH THE IBM SEARCH CLEARLY WILL SET PRECEDENTS FOR HOW DUAL SEARCHES ARE CONDUCTED IN THE FUTURE THERE HAS BEEN ONLY ONE OTHER MAJOR KNOWN CASE IN WHICH A SEARCH REQUIRED TWO FIRMS IN 1971 AMTRAK HIRED HEIDRICK AND WARD HOWELL INTERNATIONAL TO FIND A NEW PRESIDENT BUT BECAUSE THE RANGE OF POTENTIAL CANDIDATES WAS SET SO BROADLY THE FIRMS COULD FUNCTION ALMOST INDEPENDENTLY STEPHEN M MCPHERSON WARD HOWELL'S NEW YORK MANAGER RECALLS THAT THE SEARCH WAS DIVIDED INTO ABOUT 20 INDUSTRIES AND PROFESSIONS WHICH INCLUDED FIELDS SUCH AS FINANCE HUMAN RESOURCES MARKETING AND HIGH TECHNOLOGY BY DIVIDING THE WORK THE SEARCH FIRMS DIDN'T HAVE TO REVEAL PROPRIETARY INFORMATION OR RELEASE OFFLIMITS LISTS AND COULD CONDUCT INDEPENDENT SEARCHES MR MCPHERSON SAYS THE TWO FIRMS SPLIT THE 50000 FEE BECAUSE THE IBM CASE REQUIRES A VERY SPECIFIC TYPE OF EXECUTIVE MESSRS ROCHE AND NEFF ARE BOUND TO HAVE MORE OVERLAP MR MCPHERSON PREDICTS THE OVERLAP ISSUE WORRIES THE RECRUITING INDUSTRY THE ASSOCIATION OF EXECUTIVE SEARCH CONSULTANTS SAYS IT BELIEVES THE SEARCH INDUSTRY'S MORAL CODES AND CLIENTCONFIDENTIALITY OBLIGATIONS COULD BE JEOPARDIZED BY HAVING TWO RECRUITERS TEAM UP ON AN ASSIGNMENT IF PROBLEMS ARISE WITH OFFLIMITS GUIDELINES THE ASSOCIATION MAY DRAFT MORE STRINGENT POLICIES AND DEVELOP RULES FOR FIRMS THAT JOIN FORCES ON A SEARCH SAYS GLENN VAN DOREN PRESIDENT OF THE SEARCH ASSOCIATION SEARCH FIRMS THAT BREAK THE GROUP'S RULES COULD BE EXPELLED THE ASSOCIATION SAYS SPECIALISTS SEE OTHER PROBLEMS BOTH BIG AND SMALL WITH SHARED SEARCHES IN THE IBM CASE THE TWO RECRUITERS INITIALLY WERE EVEN IN A QUANDARY OVER WHOSE LETTERHEAD SHOULD BE USED FOR REPORTS PEOPLE FAMILIAR WITH THE SEARCH SAY BLANK STATIONERY IS BEING USED NEXT WAS THE QUESTION OF OFFICE SPACE THE MEN ALTERNATE BETWEEN HEIDRICK AND SPENCERSTUART OFFICES WHICH ARE JUST A FEW BLOCKS APART IN NEW YORK THEN THERE ARE QUESTIONS OF PERSONALITY AND STYLE MR NEFF IS CONSIDERED COOL AND BUTTONDOWN CAUTIOUS WHILE MR ROCHE IS SEEN AS GREGARIOUS AND BOLD INDUSTRY OBSERVERS WONDER HOW THE TWO WILL BE ABLE TO PUT THEIR RIVALRY IN ABEYANCE FIERCELY COMPETITIVE EACH WANTS TO BE THE ONE WHO FINDS IBM'S NEW CHIEF EXECUTIVE THEY KNOW THAT THE FINDER IS LIKELY TO GET THE FOLLOWUP JOB TO COMPLETE IBM'S MANAGEMENT TEAM BUT THE TWO MEN HAVE COMMON GROUND BOTH ARE CONSIDERED TO BE DOGGED IN THEIR PURSUIT OF TALENT A FEW YEARS AGO MR NEFF POSTPONED HIS HONEYMOON TO WORK ON AN IMPORTANT SEARCH MR ROCHE RECENTLY DELAYED DEPARTING FOR A WINTER GETAWAY IN FLORIDA BECAUSE OF WORK THESE GLAMOUR SEARCHES ARE TOO ATTRACTIVE TO IGNORE FOR PERSONAL MATTERS SAYS DAVID LORD MANAGING EDITOR OF EXECUTIVE RECRUITER NEWS MARTIN EMMETT IS CHIEF EXECUTIVE OFFICER OF TAMBRANDS INC IN A MARKETPLACE ARTICLE WEDNESDAY THE COMPANY WAS INCORRECTLY IDENTIFIED AS TANDY CORP 9302240086 930224 IBM'S SEARCH FOR NEW LEADER APPEARS AHEAD OF SCHEDULE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE HUNT FOR A NEW CHIEF EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP IS MOVING TOWARD A SHORT LIST OF FINALISTS AND COULD BE COMPLETED WITHIN A MONTH IBM INSIDERS SAY IBM DIRECTORS MET YESTERDAY AMID INDICATIONS THAT THE HIGHSTAKES SEARCH IS MOVING MUCH FASTER THAN ORIGINALLY PLANNED I WOULDN'T BE SURPRISED IF IT WERE OVER IN LATE MARCH SAID ONE OFFICIAL CLOSE TO THE SEARCH IN PREVIOUS PUBLIC STATEMENTS IBM SAID IT EXPECTED TO SELECT A NEW CEO BY THE END OF APRIL IT'S NOT GOING TO BE AS DIFFICULT AS THEY THOUGHT THEY OUGHT TO BE DOWN TO BUSINESS INTERVIEWING FIVE OR SIX PEOPLE FAIRLY FAST SAID ONE IBM INSIDER WHO RECENTLY MET WITH JAMES BURKE THE IBM DIRECTOR LEADING THE SEARCH SEVERAL OFFICIALS CLOSE TO IBM AND ITS TWO EXECUTIVESEARCH FIRMS SAID THEY BELIEVED IBM DIRECTORS YESTERDAY BEGAN DISCUSSING ABOUT A HALFDOZEN FINALISTS AMONG THE NAMES SAID TO BE UNDER CONSIDERATION MORTON MEYERSON CHAIRMAN OF PEROT SYSTEMS CORP GEORGE FISHER CHIEF EXECUTIVE OF MOTOROLA INC AND LOUIS GERSTNER CHAIRMAN OF RJR NABISCO INC THE DIRECTORS AND CONSULTANTS WORKING ON THE SEARCH HAVE MAINTAINED INTENSE SECRECY ABOUT THE SUBJECT AND IT WASN'T CERTAIN THAT THESE THREE MEN WERE ON AN OFFICIAL FINALISTS' LIST OFFICIALS CLOSE TO THE IBM SEARCH SAID JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC REMAINS A SERIOUS CONTENDER BUT SOME EXECUTIVES CLOSE TO APPLE SAID THEY BELIEVED MR SCULLEY HAS STARTED TELLING COLLEAGUES HE ISN'T INTERESTED IN THE IBM JOB MR SCULLEY HAS LATELY HAD ONE OF THE HIGHEST PROFILES OF ANY AMERICAN BUSINESS EXECUTIVE PROMOTING PRESIDENT CLINTON'S ECONOMIC PLAN AND HOBNOBBING ABOUT INTERACTIVE ENTERTAINMENT WITH HOLLYWOOD CHIEFTAINS SOME OFFICIALS FAMILIAR WITH MR SCULLEY SAID THEY BELIEVED HE IS RELUCTANT TO GIVE UP THIS LIFE FOR A BRUTAL STRUGGLE TO REPAIR IBM MY SENSE IS PRIVATELY HE'S LET IT BE KNOWN HE'S NOT INTERESTED SAID ONE OFFICIAL CLOSE TO APPLE BUT OFFICIALS CLOSE TO THE IBM SEARCH SAY MR SCULLEY HAS BEEN CONSIDERED A SERIOUS CANDIDATE AND IT'S TOO SOON TO RULE HIM OUT MR SCULLEY WHO IS 53 YEARS OLD HASN'T BEEN COMMENTING ABOUT IBM ANOTHER WIDELY MENTIONED CANDIDATE NORTHERN TELECOM LTD CHAIRMAN PAUL STERN APPEARS TO BE ENCOUNTERING RESISTANCE WITHIN IBM MR STERN KNOWN AS A BLUNT HARDCHARGING MANAGER SPENT EIGHT YEARS AT IBM AND LEFT IN 1976 ONE OFFICIAL FAMILIAR WITH THE SEARCH SAID IBM DIRECTORS ARE CONCERNED ABOUT STRONG OBJECTIONS TO MR STERN FROM SOME INFLUENTIAL IBM EXECUTIVES ON THE OTHER HAND MANY IBM CRITICS HAVE CALLED FOR A NEW CHIEF EXECUTIVE UNAFRAID TO SHAKE UP THE COMPUTER GIANT'S ENTRENCHED BUREAUCRACY CONCEIVABLY THE TENSION OVER MR STERN COULD EMERGE AS A POINT IN HIS FAVOR MR STERN COULDN'T BE REACHED FOR COMMENT MR MEYERSON'S NAME HASN'T BEEN WIDELY MENTIONED AS A TOP CONTENDER FOR THE IBM JOB BUT HE HAS SOME STRONG SUPPORTERS CLOSE TO THE SEARCH HE IS ONE OF THE LEADING EXECUTIVES IN THE BOOMING COMPUTERSERVICES FIELD A MARKET IBM CONSIDERS CRUCIAL TO ITS TURNAROUND ALONG WITH HIS LONGTIME COLLEAGUE ROSS PEROT THE 54YEAROLD MR MEYERSON BUILT ELECTRONIC DATA SYSTEMS CORP INTO A HIGHTECH SERVICES POWERHOUSE AFTER HELPING RUN THE PEROT PRESIDENTIAL CAMPAIGN HE NOW RUNS THE COMPANY MR PEROT FOUNDED AFTER LEAVING EDS MR MEYERSON ALSO UNDERSTANDS THE PERSONALCOMPUTER BUSINESS INTIMATELY AFTER A RECENT STINT AS A TOP CONSULTANT TO PC MAKER DELL COMPUTER CORP HE IS SO OBVIOUS FOR THE JOB SAID ONE SENIOR IBM INSIDER MR MEYERSON WAS TRAVELING IN ASIA AND COULDN'T BE REACHED FOR COMMENT YESTERDAY DE SOTO JORDAN A PEROT SYSTEMS VICE PRESIDENT SAID MR MEYERSON HAS BEEN TELLING HIS COLLEAGUES HE EXPECTS TO STAY AT THE COMPANY A LONG TIME BUT HE ADDED SPEAKING OF MESSRS PEROT AND MEYERSON I WOULD BE LEERY OF ANYBODY WHO SAYS THEY CAN PREDICT WHAT EITHER ONE OF THOSE PEOPLE WILL DO MR MEYERSON AND MOTOROLA'S 52YEAROLD MR FISHER ARE VIEWED AS EXECUTIVES WHO MIGHT PERFORM THE DELICATE BALANCING ACT THE IBM COMMITTEE IS SEARCHING FOR IBM IS WIDELY REGARDED AS NEEDING A STRONG ICONOCLAST BUT ALSO A CONSERVATIVE FIGURE WHO WON'T UNNERVE IBM'S BLUESUITED RANK AND FILE COMPUTER EXECUTIVES ALSO SAY IBM NEEDS A WELLKNOWN HEAVYWEIGHT WITH A STRONG TRACK RECORD YET SOMEONE YOUNG ENOUGH TO SPEND SEVERAL YEARS TURNING IBM AROUND RJR'S MR GERSTNER DOESN'T HAVE A STRONG TECHNOLOGY BACKGROUND BUT MR BURKE HAS SAID HE WANTS FRESH THINKING AT IBM AND ISN'T LIMITING HIS SEARCH TO THE COMPUTER INDUSTRY MR GERSTNER 50 WOULD ALSO BRING THE VALUABLE PERSPECTIVE OF A BIG IBM CUSTOMER BEFORE COMING TO RJR HE WAS PRESIDENT OF AMERICAN EXPRESS CO ONE OF THE CORPORATE WORLD'S MOST ADVANCED COMPUTER USERS SEVERAL WELLKNOWN HIGHTECH EXECUTIVES HAVE MADE PUBLIC STATEMENTS RULING THEMSELVES OUT OF THE IBM SEARCH THEY INCLUDE PAUL ALLAIRE CHAIRMAN OF XEROX CORP BILL GATES CHAIRMAN OF MICROSOFT CORP SCOTT MCNEALY CHAIRMAN OF SUN MICROSYSTEMS INC AND H ROSS PEROT WALT DISNEY CO CHAIRMAN MICHAEL EISNER WHO HAS PERIODICALLY SURFACED IN SPECULATION ABOUT IBM IS ALSO COUNTING HIMSELF OUT HE WOULDN'T CONSIDER THE JOB A DISNEY SPOKESMAN SAYS 9302240085 930224 MARKETING & MEDIA ADVERTISING ANTIABORTION GROUPS PUSH MESSAGE IN ADS BY LAURA BIRD IN THE FIRST HOURS OF THE NEW ADMINISTRATION PRESIDENT CLINTON VAPORIZED 12 YEARS OF ANTIABORTION POLICIES WITH A STROKE OF HIS PEN LIFTING FEDERAL RESTRICTIONS ON ABORTION COUNSELING AND FETALTISSUE RESEARCH ANTIABORTION GROUPS FINDING THEMSELVES WITH AS LITTLE INFLUENCE AND ACCESS AS THEY HAVE HAD SINCE THE LATE 1970S ARE USING LIMITED FUNDS TO BYPASS THE NEWS MEDIA AND BUY AN ARENA OF THEIR OWN ADVERTISING WE HAVE LOST THE LEGAL WAR IS THE FLAT CONCESSION OF MICHAEL BAILEY THE ONETIME CANDIDATE FOR CONGRESS WHOSE GORY ANTIABORTION ADS GARNERED NATIONAL ATTENTION LAST YEAR NOW IT'S A BATTLE FOR MINDS AND HEARTS THE EFFORT HAS OPENED A DEBATE IN THE NATION'S ANTIABORTION MOVEMENT OVER JUST HOW BLUNT AND INFLAMMATORY ITS MESSAGE SHOULD BE SOME COMBATANTS SAY REPUGNANT IMAGES INVOKING CHARGES OF MURDER AND MUTILATION ARE THE ONLY WAY TO SHOW PEOPLE THAT ABORTION SHOULD BE ILLEGAL BUT OTHERS PLY A SOFTER APPROACH PORTRAYING UPBEAT PROLIFE STORIES IN A SHREWD BID TO WIN OVER THE UNDECIDED THE SEGMENT THAT ONE ACTIVIST CALLS THE PERSUADABLE MIDDLE MR BAILEY CLEARLY LEADS THE RADICAL FACTION LAST SPRING HE DELIVERED CLOSEUPS OF MANGLED BLOODY FETUSES SOME STREWN ABOUT IN PAILS AND SINKS INTO THE LIVING ROOMS OF SOUTHERN INDIANA DURING HIS REPUBLICAN PRIMARY RACE LOCAL STATIONS AIRED THE SPOTS UNDER FEDERAL COMMUNICATION COMMISSION RULES GUARANTEEING POLITICAL CANDIDATES ACCESS TO THE AIRWAVES BY THE FALL 19 OTHER ANTIABORTION CANDIDATES NATIONWIDE HAD FOLLOWED HIS LEAD AND RAN SIMILARLY GRAPHIC COMMERCIALS IN THE GENERAL ELECTION FOR HIS JARRING AND DISTURBING APPROACH MR BAILEY WON THE PRIMARY BUT LOST THE GENERAL ELECTION BUT NOW HIS SHOCK TACTICS WILL APPEAR IN NEW ADS THIS WEEK ON BEHALF OF PROLIFE CANDIDATE KEN CALLIS WHO IS RUNNING FOR A CONGRESSIONAL SEAT IN A SPECIAL ELECTION IN CINCINNATI MR BAILEY PRESIDENT OF THE LANESVILLE IND AGENCY BAILEY ADVERTISING IS THE CALLIS CAMPAIGN MANAGER IN ONE OF THE NEW SPOTS SET TO AIR ON CINCINNATI STATIONS TOMORROW MR CALLIS PROCLAIMS ELECT ME TO CONGRESS AND I'LL BE FIGHTING FOR LIVING VICTIMS OF ABORTION IT THEN SHOWS A WOMAN IN BED IN A RESTLESS SLEEP A CHILD'S VOICE PLEADS MOMMY DON'T KILL ME FOLLOWED BY A GRUESOME IMAGE OF AN ABORTED FETUS THEN COMES THE TAGLINE ABORTION ONE DEAD ONE WOUNDED ANOTHER BAILEY SPOT IN THE CALLIS CAMPAIGN IS NO LESS SUBTLE IN GOING AFTER HOMOSEXUALS HOMOSEXUALITY IS WRONG BECAUSE THE BIBLE SAYS IT IS WRONG THE CANDIDATE DECLARES FOLLOWED BY CLOSEUP SHOTS APPARENTLY TAKEN AT A GAYRIGHTS FESTIVAL OF MEN EMBRACING AND KISSING BUT THE NBC AFFILIATE WLWT REFUSED TO RUN THE TWO COMMERCIALS EXCEPT DURING THE HOURS OF 1230 AM AND 630 AM MR BAILEY SAID THE NBC AFFILIATE DIDN'T RETURN CALLS SEEKING COMMENT THE ABC AND CBS LOCAL AFFILIATES SAY THEY ARE LEGALLY BOUND TO AIR THE SPOTS ALTHOUGH WHETHER A STATION IS FORBIDDEN FROM RESTRICTING THE HOURS ISN'T CLEAR ABORTIONRIGHTS FORCES DECRY THE GROTESQUE IMAGERY OF THE BAILEY APPROACH THE SHOCK ADS ARE DESIGNED TO INFLAME TENSIONS AND FAN THE FLAMES OF CONTROVERSY RATHER THAN RESPONSIBLY ADDRESS THE ISSUE SAYS SARA PINES PRESS SECRETARY OF THE NATIONAL ABORTION RIGHTS ACTION LEAGUE WHICH LOBBIES FOR ABORTION RIGHTS THEY'RE EXPLOITING A FEDERAL ELECTION LAW THAT PROTECTS CANDIDATES' ADS IN ORDER TO AIR THEIR EXTREMIST VIEWS EVEN SOME ANTIABORTION ELEMENTS DON'T APPROVE OF THE TACTIC I WOULDN'T PUT MY NAME ON AN AD THAT SCARES PEOPLE SAYS CARL LANDWEHR PRESIDENT OF THE MISSOURI CITIZENS FOR LIFE EDUCATION FUND BASED IN JEFFERSON CITY WE TRY TO AVOID THE THINGS THAT ALIENATE PEOPLE YOU DON'T TURN PEOPLE OFF TO TURN THEM ON ADAPTING SHOCK ADVERTISING FOR USE OUTSIDE ELECTION CAMPAIGNS IS MORE DIFFICULT FOR REASONS OF TASTE THE ST LOUIS POSTDISPATCH LAST MONTH REJECTED AN AD FROM THE MISSOURI CHAPTER OF RIGHT TO LIFE IT PICTURED A PLASTIC DOLL WHOSE ARMS LEGS AND HEAD WERE DETACHED FROM THE BODY THE HEADLINE READ THIS IS ABORTION EXCEPT THE BABY'S NOT PLASTIC THE AD ECHOED SENTIMENTS THAT MR BAILEY EXPRESSED IN HIS OWN COMMERCIALS WHICH SHOWED THE REAL THING THE NEWSPAPER CITED POOR TASTE FOR A FAMILY NEWSPAPER AND FACTUAL MISREPRESENTATION THE POSTDISPATCH'S READER'S ADVOCATE LARRY FIQUETTE SAYS THE PICTURE OF THE DOLL WAS UNDERSTOOD TO REPRESENT A THIRDTERM ABORTION AND THOSE ARE RARE IN MISSOURI IN ACUTE CONTRAST TO MR BAILEY'S SCARY TACTICS ARE ADS FILLED WITH SMILING FAMILIES HEALTHY CHILDREN AND SUNNY SUBURBAN SETTINGS LIFE WHAT A BEAUTIFUL CHOICE IS THE SENTIMENT OF A 20 MILLION CAMPAIGN THAT HAS BEEN RUNNING FOR THE PAST YEAR ON CNN AND OTHER OUTLETS THE NONPROFIT ARTHUR S DEMOSS FOUNDATION PAID FOR THE ADS AND PHIL DUSENBERRY CREATIVE HEAD OF OMNICOM GROUP'S BBDO HELPED CREATE THEM ONE SPOT SHOWS A TEENAGER SINGING IN A CHOIR MY NAME IS GIANNA JESSEN SHE SAYS I ALMOST WASN'T BORN IT GOES ON TO EXPLAIN HOW HER MOTHER HAD TRIED UNSUCCESSFULLY TO ABORT HER CNN ASKED FOR AND RECEIVED VERIFICATION OF MISS JESSEN'S STORY AND THAT SHE HERSELF APPEARED IN THE SPOTS ACCORDING TO A CNN SPOKESMAN CNN DIDN'T DEMAND VERIFICATION FOR OTHER LESS INTENSE DEMOSS ADS AND INDEED ACTORS AUDITIONED FOR AT LEAST SOME OF THEM INFORMATION ABOUT THE FOUNDATION IS SCARCE MR DUSENBERRY DECLINES TO DISCUSS HIS ROLE THE FOUNDATION BASED IN ST DAVIDS PA FAXES A STATEMENT TO INQUIRING REPORTERS THAT SAYS THE CAMPAIGN SEEKS TO CHANGE MINDS NOT LAWS BY GETTING PEOPLE TO THINK ABOUT A DIFFICULT SUBJECT IN A NEW LIGHT THE FOUNDATION IS NAMED FOR THE FORMER PRESIDENT OF NATIONAL LIBERTY LIFE INSURANCE CO WHO DIED IN 1979 IT FUNDS AND OPERATES EVANGELICAL AND DISCIPLING PROGRAMS AND HAS ASSETS OF 384 MILLION ACCORDING TO THE 1992 EDITION OF THE FOUNDATION CENTER'S FOUNDATION DIRECTORY OTHER CAMPAIGNS TAKE A SIMILARLY SOFT TACK THE AMERICAN LIFE LEAGUE PRODUCES CELEBRATE LIFE A HALFHOUR SHOW ON 121 CABLE AND BROADCAST STATIONS MOST OF THEM DEVOTED TO RELIGIOUS PROGRAMMING RECENT EPISODES HAVE FOCUSED ON ADOPTION OPTIONS WHEN HUMAN LIFE BEGINS AND ANGEL OF GRACE A LOOK AT INTRAUTERINE SURGERY PERFORMED ON AN UNBORN CHILD VIEWERS CAN CALL AN 800 NUMBER TO OBTAIN LITERATURE FROM THE GROUP WHICH CAPTURES THEIR NAMES AS FUNDRAISING PROSPECTS MR LANDWEHR OF THE MISSOURI EDUCATION GROUP SAYS 35 OF THE PEOPLE IN HIS STATE ARE LOOKING FOR INFORMATION ABOUT ABORTION AND THEREFORE MAKE UP WHAT HE CALLS THE PERSUADABLE MIDDLE HIS GROUP TRIES TO BUY TIME NEAR THE DEMOSS ADS TO CREATE A SYNERGISM EFFECT PEOPLE ARE MESMERIZED BY WORDS LIKE CHOICE' AND PRIVACY' MR LANDWEHR SAYS WE WANT TO PRESENT A TOTALLY DIFFERENT SIDE FROM THE NEGATIVE SIDE OF THE PROLIFE PERSPECTIVE THAT YOU GET FROM NEWS COVERAGE ONE SPOT SHOWS A WOMAN IN HER 20S WONDERING WHY WOMEN WHO ARE HAVING ABORTIONS CARRY FETUSES WHILE WOMEN WHO CARRY PREGNANCIES TO TERM HAVE BABIES OMNICOM OMNICOM GROUP THE AD AGENCY HOLDING COMPANY SAID FOURTHQUARTER NET INCOME ROSE 18 TO 238 MILLION OR 84 CENTS A SHARE QUARTERLY REVENUE INCREASED 66 TO 4009 MILLION FOR THE FULL YEAR OMNICOM REPORTED NET OF 693 MILLION OR 245 A SHARE UP 21 FROM 1991 OMNICOM IS THE PARENT OF AGENCIES INCLUDING BBDO AND DDB NEEDHAM ACCOUNT OFFICEMAX INC THE OFFICESUPPLY RETAILER TAPPED CLEVELAND AGENCY MELDRUM & FEWSMITH COMMUNICATIONS FOR A 30 MILLION ACCOUNT AFTER A CREATIVE REVIEW INVOLVING THREE OTHER NEW YORK AND MIDWEST AGENCIES THE ACCOUNT WAS PREVIOUSLY HANDLED BY THE SOUTHFIELD MICH AGENCY ROSS ROY COMMUNICATIONS OFFICEMAX IS A SHAKER HEIGHTS OHIO UNIT OF KMART CORP COMMERCIAL BOB NEWHART WROTE AND APPEARS IN NEW COMMERCIALS FOR BELL ATLANTIC CORP DOING HIS TRADEMARK TELEPHONECOMEDY SHTICK TO PROMOTE CONSUMERCALLING FEATURES WPP GROUP'S J WALTER THOMPSON CREATED THE SPOTS STILL UNRESOLVED IS BELL ATLANTIC'S REVIEW OF THE MEDIA PORTION OF ITS 60 MILLION ACCOUNT AMONG THE CONTENDERS ARE THOMPSON AND JORDAN MCGRATH CASE & TAYLOR THE NEW YORK SHOP THAT CREATED THE RINGERS SITUATIONCOMEDY INFOMERCIAL WHICH BELL ATLANTIC HAS BEEN TESTING IN BALTIMORE HARDEE'S HARDEE'S FOOD SYSTEMS SAID IT SELECTED GLOVER ADVERTISING & ASSOCIATES INC BOLINGBROOK ILL TO DIRECT ADVERTISING AND MARKETING TO BLACK CONSUMERS HARDEE'S A UNIT OF MONTREALBASED IMASCO LTD SAID IT WILL MAKE A CONCERTED EFFORT TO TARGET BLACK CONSUMERS AFTER DETERMINING IT WASN'T GETTING ITS SHARE OF THE DOLLARS BLACKS SPEND ON FAST FOOD 9302240084 930224 BUSINESS BRIEFS SMITH CORONA CORP PURCHASED THE ASSETS OF ACCOUNTANTS SUPPLY HOUSE TERMS WEREN'T DISCLOSED RAYTHEON CO SAID IT RECEIVED A 294 MILLION CONTRACT FROM THE AIR FORCE FOR 614 MEDIUMRANGE AIRTOAIR MISSILES CRSS INC WAS AWARDED THE CONTRACT FOR THE DESIGN OF THE GEORGE BUSH PRESIDENTIAL LIBRARY AND A RELATED ACADEMIC FACILITY ON THE TEXAS A&M UNIVERSITY CAMPUS IN COLLEGE STATION TEXAS NORTHERN TELECOM LTD'S NORTHERN TELECOM EUROPE UNIT SIGNED AN AGREEMENT VALUED AT AS MUCH AS 70 MILLION TO SUPPLY SWITCHING TECHNOLOGY TO TELEWEST COMMUNICATIONS GROUP LTD NORTHERN TELECOM IS A SUBSIDIARY OF BCE INC POUGHKEEPSIE SAVINGS BANK SOLD TWO SHOPPING CENTERS ACQUIRED THROUGH FORECLOSURES FOR 83 MILLION A 200000 PRETAX GAIN THE BANK RECEIVED 19 MILLION IN CASH ON THE SALES AND OBTAINED A MORTGAGE FOR THE BALANCE 9302240083 930224 TECHNOLOGY & MEDICINE UNISYS REPEATS FLAT REVENUE FORECAST '93 NET SEEN HIGHER BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL IN A PRESENTATION TO WALL STREET ANALYSTS CHAIRMAN JAMES UNRUH FOCUSED HEAVILY ON UNISYS'S FUTURE GROWTH PROSPECTS IN AN APPARENT EFFORT TO CHANGE ITS IMAGE AS A COMPANY THAT MERELY HAS SLASHED COSTS TO PULL BACK FROM THE BRINK OF OBLIVION STRESSING THIS POINT IN THE COMPANY'S SLIDE SHOW ONE OF MR UNRUH'S SLIDES SAID SIMPLY REVENUE WILL GROW SEVERAL TIMES HE SAID UNISYS'S COSTCUTTING TURNAROUND NOW IS HISTORY AND THE COMPANY'S NEXT PHASE HAS BEGUN FOR THE FULL 1993 THE COMPUTER COMPANY BASED IN BLUE BELL PA SAID IT EXPECTS PERSHARE PROFIT TO RISE SIGNIFICANTLY FOR 1992 UNISYS REPORTED PROFIT OF 361 MILLION OR 140 A SHARE INCLUDING AN EXTRAORDINARY GAIN OF 65 MILLION OR 36 CENTS A SHARE FOR TAXLOSS CARRYFORWARDS IN THE LONGER TERM UNISYS SAID IT HAS INCREASED ITS RETURNONINVESTMENT GOAL TO AT LEAST 16 UP FROM A LONGTERM GOAL OF 13 A YEAR AGO FOR 1992 UNISYS SAID IT HAD A 12 RETURN ON INVESTMENT UNISYS SAID IT EXPECTS TO IMPLEMENT TWO ACCOUNTING CHANGES THIS QUARTER RELATING TO POSTRETIREMENT MEDICAL BENEFITS AND DEFERRED INCOME TAXES AS EXPECTED THE COMPANY SAID THESE CHANGES WILL RESULT IN A NET GAIN OF ABOUT 200 MILLION TO FIRSTQUARTER PROFIT IT ALSO SAID IT EXPECTS SOON TO MAKE A PAYMENT OF 175 MILLION TO 200 MILLION TO THE GOVERNMENT TO SETTLE A 12YEAROLD TAX CASE INVOLVING PREDECESSOR COMPANY SPERRY CORP THIS PAYMENT WILL AFFECT CASH FLOW BUT WON'T AFFECT UNISYS'S BOTTOM LINE BECAUSE IT HAD ALREADY FULLY PROVISIONED FOR THE PAYMENT TO ACHIEVE ITS FUTURE REVENUE GROWTH UNISYS SAID IT WILL RELY HEAVILY ON THE FASTGROWING AREA OF INFORMATION SERVICES FROM WHICH IT GOT 13 BILLION OF ITS 84 BILLION IN REVENUE LAST YEAR UNISYS'S SENIOR VICE PRESIDENT VICTOR MILLAR WHO HEADS THE SERVICES THRUST SAID THE COMPANY EXPECTS TO EXCEED AN INDUSTRYWIDE ANNUAL GROWTH RATE OF 12 TO 15 IN SERVICES AND TO DO SO AT A HIGHER LEVEL OF PROFITABILITY THAN OUR COMPETITION WHILE UNISYS ISN'T COUNTING ON REVENUE GROWTH FOR 1993 MAINLY DUE TO ECONOMIC WEAKNESS IN EUROPE AND JAPAN MR UNRUH SAID THE COMPANY IS WELLPOSITIONED TO PROFIT FROM ANY UPSIDE SURPRISE BECAUSE UNISYS IS IN FIGHTING SHAPE JUST A 1 INCREASE IN REVENUE WOULD TRANSLATE INTO 10 CENTS A SHARE IN EXTRA PROFIT HE SAID 9302240082 930224 WHO'S NEWS GITANO TO REPORT WIDER 4THPERIOD LOSS HIRES FORMER VF EXECUTIVE FOR TOP JOBS NEW YORK GITANO GROUP INC SAID IT EXPECTS TO REPORT A WIDER FOURTHQUARTER LOSS THAT INCLUDES A BIG ONETIME RESTRUCTURING CHARGE AND THAT IT HIRED ROBERT E GREGORY A FORMER VF CORP EXECUTIVE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE MAKER OF CASUAL APPAREL GITANO SAID THE LOSS FOR THE QUARTER WILL BE ABOUT 140 MILLION THAT INCLUDES AN AFTERTAX CHARGE OF ABOUT 103 MILLION FOR COSTS OF CLOSING SOME RETAILING AND MANUFACTURING OPERATIONS THE CHARGE ALSO INCLUDES ABOUT 50 MILLION FOR NONCASH WRITEDOWNS OF GOODWILL PLANT AND EQUIPMENT FOR THE YEAR EARLIER FOURTH QUARTER GITANO POSTED A NET LOSS OF 667 MILLION OR 417 A SHARE WHICH INCLUDED A ONETIME 122 MILLION RESTRUCTURING CHARGE ON SALES OF 1884 MILLION FOR ALL OF 1992 GITANO EXPECTS ITS NET LOSS TO WIDEN TO ABOUT 238 MILLION COMPARED WITH 625 MILLION OR 390 A SHARE ON SALES OF 7804 MILLION IN 1991 GITANO WHICH MARKETS BUDGET APPAREL TO RETAILERS SUCH AS WALMART STORES INC HAS BEEN STRUGGLING FOR THE LAST TWO YEARS TO REFOCUS ITS BUSINESS AND RENEGOTIATE WITH ITS LENDERS GITANO SAID YESTERDAY THAT ITS LENDERS HAVE AGREED TO A TWOYEAR EXTENSION ON ITS 250 MILLION CREDIT FACILITIES AND TO PROVIDE ABOUT 120 MILLION IN LETTERS OF CREDIT MR GREGORY HAD BEEN PRESIDENT OF VF AN APPAREL MAKER UNTIL 1990 WHEN HE RESIGNED HAIM DABAH WHO HAD BEEN CHIEF EXECUTIVE OF GITANO AND CONTINUES AS PRESIDENT SAID THAT MR GREGORY'S APPOINTMENT AND THE FACT THAT OUR LENDERS HAVE GIVEN US A LONGTERM DEAL SENDS VERY STRONG SIGNALS TO OUR RETAIL CUSTOMERS VENDORS AND ASSOCIATES THAT GITANO IS HERE TO STAY FOR THE LONG RUN MR GREGORY WAS EMPLOYED AT VF FOR 11 YEARS EIGHT OF WHICH HE SPENT AS PRESIDENT AND CHIEF OPERATING OFFICER AND THREE YEARS AS PRESIDENT OF ITS LEE JEANS DIVISION HE RESIGNED FROM VF IN 1990 TO PURSUE POSSIBLE INVESTMENTS IN OTHER COMPANIES MR GREGORY SAID THAT HE IS LOOKING FORWARD TO THE OPPORTUNITY TO REPAIR AND TO REFOCUS GITANO WHICH HAS A TERRIFIC BRAND EQUITY IN THE MARKETPLACE WITH MR GREGORY'S ARRIVAL GITANO'S FOUNDING DABAH FAMILY HAVE GIVEN UP MUCH OF THEIR ROLE IN THE COMPANY'S TOP MANAGEMENT AS PRESIDENT HAIM DABAH WILL CONCENTRATE ON GITANO'S MARKETING WHILE HIS FATHER MORRIS DABAH WHO HAD BEEN CHAIRMAN WILL BECOME CHAIRMAN EMERITUS AS REPORTED MORRIS DABAH AND HIS THREE SONS LAST NOVEMBER FILED FOR PERSONAL CHAPTER 11 PROTECTION FROM CREDITORS AFTER ONE OF THEIR CREDITORS CITICORP SOLD A 14 STAKE IN GITANO THAT IT HAD HELD AS COLLATERAL ON LOANS TO THE DABAHS THE CITICORP ACTION DERAILED NEGOTIATIONS BETWEEN THE DABAHS AND THEIR MAJOR CREDITORS TO RESTRUCTURE THEIR DEBTS NEITHER GITANO NOR ITS CHILDREN'S PLACE RETAIL CHAIN DIVISION FILED FOR CHAPTER 11 9302240081 930224 BUSINESS BRIEF MICROSEMI CORP COMPANY PLANS COST CUTTING IN FACE OF LIQUIDITY CRISIS MICROSEMI CORP SAID IT PLANS STAFF CUTS ASSET SALES COST REDUCTIONS AND OTHER POSSIBLE STEPS IN THE FACE OF A LIQUIDITY CRISIS THE SANTA ANA CALIF SEMICONDUCTOR SUPPLIER ATTRIBUTED ITS CASH SHORTAGE TO COSTS OF CERTAIN OPERATING BUSINESSES AND NONRECURRING PAYMENTS THE COMPANY DIDN'T ELABORATE ON ITS PLANS AND COMPANY OFFICIALS WEREN'T AVAILABLE TO COMMENT MICROSEMI SAID IN A NEWS RELEASE THAT ITS FINANCIAL TROUBLES WERE AGGRAVATED BECAUSE AN ANTICIPATED LOAN FROM A RELATED PARTY MAY NOT BE AVAILABLE THE COMPANY SAID IT BELIEVES IT TO BE PRUDENT TO TAKE SIGNIFICANT IMMEDIATE STEPS TO REDUCE CASH OUTFLOWS MICROSEMI SAID IT IS ALSO CONSIDERING THE POSSIBLE SALE OR REFINANCING OF REAL ESTATE HOLDINGS REFINANCING OF EQUIPMENT AND SALE OF EQUITY SECURITIES 9302240080 930224 ABREAST OF THE MARKET CONSUMER CONFIDENCE DROP SENDS INDUSTRIAL AVERAGE DOWN 1972 BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BIG DROP IN CONSUMER CONFIDENCE SPOOKED THE STOCK MARKET SPURRING INVESTORS TO BAIL OUT OF ECONOMICALLY SENSITIVE STOCKS EVEN AS INTEREST RATES CONTINUED TO SLIDE THE SELLING GAINED MOMENTUM IN THE AFTERNOON AS UNCONFIRMED RUMORS ABOUT A CLINTON PROPOSAL TO CAP CONSUMER FINANCE RATES SWEPT THE MARKET THE SPECULATION DROVE THE DOW JONES INDUSTRIAL AVERAGE DOWN MORE THAN 25 POINTS AND HAMMERED THE STOCKS OF A NUMBER OF BANK AND AUTO COMPANIES WITH BIG CONSUMER LENDING BUSINESSES AFTER THE MARKET CLOSED A TREASURY OFFICIAL SAID THE RUMORS WERE ABSOLUTELY UNTRUE NEVERTHELESS THE DOW JONES INDUSTRIAL AVERAGE FINISHED 1972 POINTS LOWER AT 332327 THE STANDARD & POOR'S 500STOCK INDEX SLIPPED 044 POINT TO 43480 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED 015 LOWER TO 23937 BUT ADVANCING ISSUES OUTPACED DECLINERS 1057 TO 927 VOLUME ON THE BIG BOARD WAS EXTREMELY HEAVY WITH 321050000 SHARES CHANGING HANDS UP SLIGHTLY FROM MONDAY'S 311510000 SHARES STOCKS STARTED YESTERDAY HIGHER BUT QUICKLY RETREATED AS INVESTORS SHIFTED THEIR ATTENTION TO A CONFERENCE BOARD REPORT SHOWING CONSUMER CONFIDENCE FELL SHARPLY IN FEBRUARY THE REPORT ON CONSUMER CONFIDENCE WAS SO GLOOMY THAT A SHARP DROP IN INTEREST RATES WASN'T ENOUGH TO KEEP STOCKS FROM SINKING THE YIELD ON THE TREASURY'S 30YEAR BOND SANK TO 682 THE CURRENT DIVERGENCE BETWEEN BONDS AND STOCKS IS NOT SUSTAINABLE SAID JOSEPH MCALINDEN STOCK MARKET STRATEGIST AT DILLON READ EITHER THE BOND MARKET BUBBLE IS GOING TO BURST OR THE STOCK MARKET IS GOING TO TURN AROUND AND HAVE AN EXTRAORDINARY CATCHUP MOVE MR MCALINDEN EXPECTS THAT STOCKS WILL MOVE HIGHER MAKING UP FOR LOST GROUND IN THE NEXT MONTH OR TWO THEN POSSIBLY LATER IN THE SECOND QUARTER BOND PRICES WILL PULL BACK AND YIELDS WILL CLIMB OVER 7 AGAIN SOME OF THE BIGGEST LOSERS IN THE STOCK MARKET YESTERDAY WERE BANK AND AUTO COMPANIES WITH BIG CONSUMER FINANCE OPERATIONS FORD LOST 1 7/8 TO 44 7/8 GENERAL MOTORS FELL 1 7/8 TO 36 7/8 AND CHRYSLER SKIDDED 2 1/8 TO 35 7/8 MEANWHILE BANKAMERICA SANK 1 7/8 TO 50 7/8 CHEMICAL BANKING DROPPED 1 1/8 TO 40 3/4 AND FIRST CHICAGO LOST 1 1/2 TO 41 1/8 FIRST USA WHICH ISSUES VISA AND MASTERCARD CREDIT CARDS PLUNGED 2 1/8 TO 25 AND DEAN WITTER DISCOVER & CO THE MOST ACTIVELY TRADED STOCK ON THE BIG BOARD WAS UNCHANGED AT 31 SEARS ROEBUCK SOLD 295 MILLION SHARES IN ITS BROKERAGE FIRM AND DISCOVER CREDITCARD OPERATIONS LATE MONDAY AT 27 A SHARE OR 7965 MILLION SEARS SAID YESTERDAY THAT IT EXERCISED AN OPTION TO SELL AN ADDITIONAL 43 MILLION SHARES IN THE OFFERING THE OVERALLOTMENTS BRING THE TOTAL NUMBER OF SHARES SOLD TO THE PUBLIC TO 338 MILLION BOOSTING THE OFFERING TO 9126 MILLION BANKS WITHOUT CREDIT CARD OR CONSUMER LOAN OPERATIONS WERE UNSCATHED IN YESTERDAY'S SELLOFF JP MORGAN ROSE FOR THE SECOND STRAIGHT DAY ADDING 5/8 TO 65 5/8 WHILE BANKERS TRUST INCHED UP 3/8 TO 67 3/4 THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY SAID THE DROP IN CONSUMER CONFIDENCE WAS THE CULPRIT BEHIND THE DECLINE IN MANY CYCLICAL STOCKS THE INVESTMENT BANK'S INDEX OF CYCLICAL STOCKS FELL 181 TO 25510 WHILE ITS BAROMETER OF CONSUMER STOCKS ACTUALLY ADVANCED 136 TO 19189 AMONG THE CYCLICAL ISSUES UNDER PRESSURE CATERPILLAR SLIPPED 1/2 TO 55 3/8 AND SEARS LOST 1 7/8 TO 52 HARD HIT WERE TRANSPORTATION STOCKS UAL DIVED 2 1/8 TO 111 7/8 CSX EASED 1/2 TO 71 1/8 AND DELTA DROPPED 3/4 TO 48 LOSSES IN SOME OF THE TRANSPORTATION STOCKS HELPED PULL THE TRANSPORTATION INDEX 906 POINTS LOWER TO 148265 ENERGY STOCKS ALSO LOST THEIR LUSTER TEXACO EASED 1 1/8 TO 62 1/8 EXXON SAGGED 1 TO 63 1/2 AND CHEVRON FELL 1 1/8 TO 78 INVESTORS ALSO DUMPED CASINO STOCKS INTERNATIONAL GAME TECHNOLOGY LOST 1/8 TO 51 3/8 AND CIRCUS CIRCUS ENTERPRISES SLID 1 1/2 TO 42 1/4 AFTER THE CLOSE OF THE MARKET INTERNATIONAL GAME SAID ITS BOARD HAS AUTHORIZED THE PAYMENT OF A QUARTERLY DIVIDEND OF THREE CENTS A SHARE AFTER A 2FOR1 STOCK SPLIT BUT DRUG STOCKS WHICH HAVE BEEN BATTERED IN RECENT WEEKS ON CONCERNS THE ADMINISTRATION WILL SEEK TO CAP DRUG COSTS PERKED UP YESTERDAY PFIZER GAINED 3 1/8 TO 57 1/8 MERCK ADDED 1 TO 37 5/8 AND BRISTOLMYERS SQUIBB JUMPED 2 3/4 TO 56 5/8 ROYAL APPLIANCE MANUFACTURING PLUMMETED 4 1/4 TO 6 7/8 THE VACUUM CLEANER MARKETER SAID IT EXPECTS A LOSS IN THE FIRST QUARTER IN ADDITION THE COMPANY'S PROFIT IN THE FOURTH QUARTER NARROWED TO 99 MILLION OR 41 CENTS A SHARE FROM 134 MILLION OR 53 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S PERSHARE EARNINGS REFLECT A 2FOR1 STOCK SPLIT DIAL ROSE 1 5/8 TO 41 3/8 THE COMPANY SAID ITS BOARD HAS AUTHORIZED MANAGEMENT TO EXPLORE AS PREVIOUSLY PROPOSED THE PRIVATE SALE OF DIAL'S TRANSPORTATION MANUFACTURING AND SERVICE PARTS UNITS DISCOUNT CORP OF NEW YORK EASED 1/4 TO 5 7/8 THE COMPANY SAID IT HIRED GOLDMAN SACHS TO EXPLORE FINANCIAL ALTERNATIVES NATIONAL STANDARD GAINED 7/8 TO 4 5/8 THE COMPANY REPORTED MONDAY THAT ITS FOURTHQUARTER LOSS NARROWED SIGNIFICANTLY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 067 TO 39996 THERE WERE 301 DECLINERS AND 290 ADVANCERS 9302240079 930224 HEARD ON THE STREET DESPITE SETBACKS AMEX MULLS YET ANOTHER MARKET BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AMERICAN STOCK EXCHANGE SEEMS TO KNOW NO LIMITS IN ITS DRIVE TO ATTRACT SMALL UNPROVEN STOCKS DESPITE A ROCKY FIRST YEAR FOR THE EXCHANGE'S NEW EMERGING COMPANY MARKETPLACE A SECOND TIER OF THE AMEX WITH LOWER LISTING STANDARDS FOR FLEDGLING COMPANIES AMEX OFFICIALS ALREADY ARE TALKING OF CREATING STILL ANOTHER NEW TIER THE IDEA IS TO LIST EVEN TINIER AND RISKIER COMPANIES THAN THE MARKET KNOWN AS THE ECM IF SUCH A THING IS POSSIBLE WE COULD START A THIRD TIER TODAY DECLARES JAMES R JONES AMEX CHAIRMAN AND A FORMER CONGRESSMAN WHO ENVISIONS HIS SMALL EXCHANGE AT THE CENTER OF AN ENTREPRENEURIAL EXPLOSION IN THE US WE'VE GOT TO FREE UP SOME CAPITAL FOR THESE ENTREPRENEURS WHO RUN SMALL COMPANIES MR JONES SAYS THAT AS A PRACTICAL MATTER THE VERYTINYSTOCK TIER HE ENVISIONS WON'T BE POSSIBLE FOR THE NEXT YEAR BUT HE SAYS IT WILL BE CONSIDERED AFTER THAT THE NEW MARKETPLACE WOULD BE AIMED AT TRUE STARTUP COMPANIES BUSINESSES WITHOUT SALES OR EARNINGS THAT IN THE PAST WOULDN'T EVEN HAVE DREAMED OF TRYING TO GO PUBLIC ON AN EXCHANGE INVESTORS HAVE REASON TO BE WARY AFTER ALL THE FIRST YEAR FOR THE ECM SHOWS JUST HOW RISKY UNPROVEN COMPANIES MANY WITHOUT EARNINGS TO SPEAK OF CAN BE FIFTEEN OF THE ORIGINAL 22 ECM STOCKS HAVE DECLINED IN PRICE THIS TRACK RECORD INCLUDES THE HIGHLY PUBLICIZED DEBACLE OF PNF INDUSTRIES WHICH JOINED THE ECM AT 925 A SHARE GOT DELISTED FROM IT AFTER INVESTORS LEARNED THAT A BANNED TRADER CONTROLLED THE COMPANY AND NOW LANGUISHES AT 1 BID IN THE OVERTHECOUNTER PINK SHEETS THERE WERE A FEW SUCCESS STORIES MEDIA LOGIC SOARED FIVEFOLD AND GRADUATED ALONG WITH FIVE OTHER ECM COMPANIES TO THE REGULAR AMEX LISTINGS BUT MOST OF THE STOCKS WEREN'T SO LUCKY THE MARKET LISTS ONLY 24 COMPANIES CURRENTLY ALTHOUGH MR JONES HAD SAID IT COULD HAVE AS MANY AS 50 BY THE END OF 1992 THE ECM HASN'T LISTED A NEW COMPANY SINCE SEPTEMBER 1992 SAYS A SPOKESMAN FOR THE NASDAQ OVERTHECOUNTER MARKET THE AMEX'S CHIEF RIVAL IN LISTING THESE SMALL CONCERNS DESPITE EFFORTS BY NASDAQ BROKERS TO UNDERMINE THE ECM ONLY ONE ORIGINAL ECM STOCK HAS QUIT AND GONE BACK TO A NASDAQ LISTING OCEAN OPTIQUE A MIAMI EYEWEAR IMPORTER BUT THREE OTHER ECM COMPANIES HAVE APPLIED TO DO SO CLAIMS THE NASDAQ SPOKESMAN MR JONES SAYS THAT ASIDE FROM PNF INDUSTRIES HIS NEW MARKETPLACE HAS BEEN A SUCCESS THE ECM STOCKS HAVE TRADED MORE EFFICIENTLY AND RECEIVED MORE ATTENTION THAN THEY DID ON NASDAQ HE SAYS THE ECM HAS BEEN A SUCCESS IT'S HERE TO STAY SAYS MR JONES AS WE SAID AT THE LAUNCH WE'D GO RATHER DELIBERATELY THE FIRST YEAR AND WORK OUT ANY PROBLEMS HE ADDS BUT LOOKING BACK IT'S ACTUALLY MORE SUCCESSFUL THAN WE THOUGHT IT'D BE NOW WE'RE GEARING UP FOR THE SECOND PHASE AND WE THINK IT'LL IMPROVE FROM THERE HOW HAVE THE ECM STOCKS DONE OVERALL IT DEPENDS ON WHOM YOU ASK NASDAQ CROWS THAT AN INDEX IT KEEPS OF ALL THE ECM ISSUES THROUGH JAN 29 IS DOWN 23 COMPARED WITH AN 11 RISE IN THE NASDAQ COMPOSITE INDEX BUT THE AMEX MAKES ITS CALCULATIONS STARTING WITH A MONTH BEFORE A COMPANY'S LISTING ON ECM TO TAKE INTO ACCOUNT THE ANNOUNCEMENT EFFECT NAMES OF ECM STOCKS WERE DISCLOSED SEVERAL DAYS BEFORE THE NEW MARKET WAS LAUNCHED IN MARCH 1992 AND THE STOCKS BEGAN RISING IMMEDIATELY CALCULATED THAT WAY ECM COMPANIES STILL ON THE MARKETPLACE ON AVERAGE ARE UP 47 THE AMEX SAYS HOWEVER THE EXCHANGE SAYS IT DOESN'T INCLUDE PNF AND OCEAN OPTIQUE IN ITS CALCULATIONS BECAUSE THEY WERE DELISTED MR JONES ALSO SAYS HE FINDS IT HARD TO BELIEVE THAT THREE MORE ECM COMPANIES HAVE APPLIED TO GO BACK TO NASDAQ THOUGH HE SAYS I THINK NASDAQ'S MARKETING PEOPLE MAY HAVE BEEN TALKING TO SOME THERE ARE BROKERS WHO LOVE THE ECM THEY SAY INVESTORS WHO PICKED THE RIGHT STOCKS SUCH AS MEDIA LOGIC OR UNIQUE MOBILITY AN ELECTRICMOTOR DEVELOPER COULD HAVE MADE A TIDY PROFIT IN THE PAST YEAR HOUSTON STOCKBROKER STEVEN GIBSON SAYS HE DID JUST THAT HE SAYS HE DIRECTED 72 OF HIS TRADING BUSINESS TO THE AMEX LAST YEAR BECAUSE OF THE ECM'S EXISTENCE AND IS HAPPY WITH THE RESULT MOREOVER EXCHANGES SUCH AS THE AMEX PROVIDE BETTER PRICES THAN THE NASDAQ MARKET HE CONTENDS MR GIBSON SAYS HIS OFFICE IS PLANNING TO PAINT A SIGN ON THE WALL THE HOUSE THAT ECM BUILT I THINK THE ECM IS ONE OF THE NICEST THINGS THAT'S HAPPENED FOR THE INDIVIDUAL INVESTOR IN MY CAREER SAYS THE 40YEAROLD MR GIBSON OTHERS ARE LESS ENTHUSIASTIC JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS SAYS HIS GROUP HASN'T PICKED UP MUCH INTEREST FROM SMALL INVESTORS IN THE ECM DESPITE ALL THE HOOPLA WHEN IT CAME OUT HE ADDS NASDAQ IS OBVIOUSLY A MUCH BROADER ARENA FOR SMALL STOCKS STAN BURKE WHO INVESTS IN SMALL STOCKS AT BAY AREA MANAGEMENT IN BRENTWOOD CALIF TENDS TO AVOID ECM COMPANIES THE AMEX IS PROBABLY DOING A SERVICE BY HAVING THEM LISTED HE SAYS BUT HOW MANY ARE ACTUALLY REAL COMPANIES MAYBE THERE'S A HIDDEN GEM IN ONE IN 100 BUT THIS REALM ISN'T WHERE YOU WANT TO PLACE THE INDIVIDUAL INVESTOR'S MONEY TRADERS CITE SUCH HIGHRISK ECM STOCKS AS AUDRE RECOGNITION SYSTEMS WHICH DESPITE YEARS OF LOSSES HAS A MARKET VALUE OF 200 MILLION BASED ON ITS STOCK PRICE SHORTSELLERS WHO TARGET STOCKS THEY BELIEVE ARE DUE FOR A FALL BY BORROWING SHARES AND SELLING THEM HAVE STARTED TO CIRCLE THE STOCK'S LEVEL OF SHORT SELLING JUMPED 37 LAST MONTH THE AMEX SAYS AN AUDRE RECOGNITION SPOKESMAN IN SAN DIEGO DIDN'T RETURN A PHONE CALL MR JONES SAYS HIS EXCHANGE IS TRYING HARD TO WEED OUT QUESTIONABLE LISTINGS IT HAS TIGHTENED UP THE LISTING PROCESS A LITTLE BIT ON THE ADVICE OF A COMMITTEE APPOINTED TO REVIEW THE ECM THE AMEX NOW CHECKS MAJOR SHAREHOLDERS OF POTENTIAL ECM COMPANIES HE SAYS IN THE PNF MATTER THE WALL STREET JOURNAL DISCLOSED THAT THE UPPER SADDLE RIVER NJ MAKER OF FLAME RETARDANTS WAS CONTROLLED BY AN INVESTOR WHO HAD BEEN BANNED FROM AMEX TRADING IN 1986 ONE OF MR JONES'S BATTLES GOING FORWARD WILL BE TO KEEP THE ECMLISTED COMPANIES HAPPY MANY WERE THRILLED WITH LAST YEAR'S OPENINGDAY PUBLICITY FOR THE MARKET INCLUDING AN APPEARANCE AND ENDORSEMENT FROM RICHARD BREEDEN OF THE SECURITIES AND EXCHANGE COMMISSION BUT THE EXCITEMENT WORE OFF FOR SOME COMPANIES SUCH AS OCEAN OPTIQUE OCEAN OPTIQUE RETURNED TO NASDAQ LATE LAST YEAR AND IS HAPPY SAYS MR GORDON HE SAYS THE ECM SEEMED GOOD AT THE BEGINNING AND THE CONCEPT MAY BE VERY VERY GOOD FOR NEW EMERGING COMPANIES HE ALSO PRAISES THE AMEX FOR BEING UNDERSTANDING WHEN HIS COMPANY DECIDED TO MOVE BACK TO NASDAQ MR JONES SAYS THIS ACCOMMODATION SHOWS THAT THE AMEX IS TRYING TO DO THINGS RIGHT WITH ITS NEW MARKETPLACE STILL HE CAN'T RESIST ADDING A LITTLE JAB AT NASDAQ HIS MUCHBIGGER RIVAL FOR SMALL STOCKS IT'S AMAZING IT TOOK NASDAQ 15 YEARS TO GAIN CREDIBILITY HE SAYS I THINK WE'VE MADE REMARKABLE SUCCESS IN A YEAR PERFORMANCE OF THE ORIGINAL 22 STOCKS ON THE AMEX'S EMERGING COMPANY MARKETPLACE FROM LAST MARCH'S LAUNCH AMEX MEANS GRADUATED TO REGULAR AMEX LISTING 9302240078 930224 BUSINESS BRIEF INTEGRATED CIRCUIT SYSTEMS INC SECONDARY OFFERING RAISES ABOUT 15 MILLION IN CAPITAL INTEGRATED CIRCUIT SYSTEMS INC SAID IT SOLD 14 MILLION COMMON SHARES FOR 1650 EACH IN A SECONDARY OFFERING RAISING ABOUT 15 MILLION FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES THE VALLEY FORGE PA MAKER OF COMPUTER CHIPS SAID IT SOLD ONE MILLION SHARES AND COMPANY OFFICIALS SOLD 400000 SHARES THE COMPANY ORIGINALLY HAD FILED TO OFFER TWO MILLION SHARES WITH HALF COMING FROM THE SELLING SHAREHOLDERS PRIMARILY CHAIRMAN EDWARD ARNOLD AND VICE CHAIRMAN MARK GUIDRY WHO WERE SLATED TO SELL 360000 AND 316000 SHARES RESPECTIVELY A SPOKESMAN SAID THE SMALLER NUMBER OF SHARES OFFERED LIKELY REFLECTED MARKET CONDITIONS INTEGRATED SHARES WERE TRADING AROUND 23 A SHARE WHEN THE OFFERING WAS ANNOUNCED IN OVERTHECOUNTER TRADING YESTERDAY INTEGRATED CIRCUIT SHARES FELL 125 TO 1575 AFTER THE OFFERING THE COMPANY WILL HAVE ABOUT 10 MILLION SHARES OUTSTANDING 9302240077 930224 INTERNATIONAL BRIEF NOBEL INDUSTRIER AB SWEDISH INDUSTRIAL FIRM SELLS 2 DEFENSE UNITS TO CELSIUS SWEDEN'S NOBEL INDUSTRIER AB AN INDUSTRIAL GROUP SAID IT SOLD TWO DEFENSESECTOR UNITS NOBELTECH SYSTEMS AND NOBELTECH ELECTRONICS TO SWEDISH STATEOWNED DEFENSE MATERIAL AND HIGHTECHNOLOGY GROUP CELSIUS INDUSTRIER AB THE AGREEMENT MARKS FURTHER STREAMLINING OF THE SWEDISH DEFENSE INDUSTRY THE PRICE FOR THE TWO UNITS AMOUNTS TO ABOUT 155 BILLION KRONOR 2048 MILLION OF WHICH 800 MILLION KRONOR 1057 MILLION CONCERNS REALESTATE HOLDINGS SAID NOBEL AS PART OF THE TRANSACTION NOBEL INDUSTRIES WILL RECEIVE STOCK IN CELSIUS EQUIVALENT TO 325 MILLION KRONOR ACCORDING TO CELSIUS THE TWO COMPANIES ACQUIRED HAVE A COMBINED WORK FORCE OF ABOUT 2000 AND HAD REVENUE OF AROUND TWO BILLION KRONOR IN 1992 UNTIL THE TRANSACTION WAS ANNOUNCED CELSIUS WAS 100 STATEOWNED ALTHOUGH PLANS HAD BEEN ANNOUNCED REGARDING PRIVATIZATION 9302240076 930224 BUSINESS BRIEF TOTAL PHARMACEUTICAL CARE INC FIRM TO POST SHARP INCREASE IN FOURTHQUARTER EARNINGS TOTAL PHARMACEUTICAL CARE INC SAID IT EXPECTS TO REPORT FOURTHQUARTER OPERATING PROFIT OF ABOUT 35 MILLION UP SHARPLY FROM 16 MILLION A YEAR EARLIER NET INCOME FOR THE TORRANCE CALIF HOME INFUSION CONCERN IS EXPECTED TO HAVE CLIMBED 83 TO 22 MILLION OR 27 CENTS A SHARE FROM 12 MILLION OR 20 CENTS A SHARE THE COMPANY'S NUMBER OF SHARES OUTSTANDING INCREASED TO 82 MILLION FROM 58 MILLION A YEAR EARLIER REVENUE IS EXPECTED TO HAVE MORE THAN DOUBLED TO ABOUT 195 MILLION FROM 97 MILLION VICTOR MG CHALTIEL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER DIDN'T PROJECT RESULTS FOR THE CURRENT YEAR BUT SAID WE DO EXPECT TO GROW AT SUBSTANTIALLY MORE THAN THE MARKET GROWTH RATE OF 15 TO 20 A YEAR MR CHALTIEL HOPES THE HOME INFUSION INDUSTRY WILL BE PART OF THE CLINTON ADMINISTRATION'S SOLUTION TO THE RISING COST OF MEDICAL CARE HOSPITAL TREATMENT IS THE COSTLIEST SEGMENT OF HEALTH CARE HE SAID AND HOME INFUSION PROVIDES DRUG THERAPY TO PATIENTS IN LESS COSTLY SETTINGS SUCH AS OUTPATIENT CENTERS AND HOMES 9302240075 930224 COMMODITIES OIL FUTURES PRICES GET FURTHER BOOST AFTER RISING THROUGH RESISTANCE LEVEL IN LONDON TRADING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES ALREADY IN AN UPTREND BECAUSE OF THE OPEC RALLY OF RECENT DAYS RECEIVED A FURTHER BOOST YESTERDAY FROM WHAT TRADERS CALLED TECHNICAL BREAKOUTS PRICES MAY DRAW MORE SUPPORT IN TODAY'S TRADING FROM A BULLISH INDUSTRY REPORT RELEASED LATE YESTERDAY THAT SHOWED A SURPRISINGLY LARGE DROP OF NINE MILLION BARRELS IN US CRUDE OIL INVENTORIES IN YESTERDAY'S TRADING THE MOST SIGNIFICANT TECHNICAL BREAKOUT WAS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE THERE IN EARLY TRADING BRENT BLEND CRUDE OIL FUTURES ROSE BEYOND THE PSYCHOLOGICALLY IMPORTANT RANGE OF 1870 TO 1875 A BARREL THE RISE THROUGH THAT SOCALLED RESISTANCE LEVEL PROMPTED FRESH BUYING THE APRIL BRENT CRUDE CONTRACT REACHED 1907 A BARREL THE HIGHEST LEVEL IN THREE MONTHS BEFORE FALLING BACK IT SETTLED AT 1895 A BARREL UP 32 CENTS FOR THE DAY WHEN FUTURES TRADING BEGAN LATER ON THE NEW YORK MERCANTILE EXCHANGE IT QUICKLY REFLECTED THE LONDON SURGE IN NEW YORK LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY TRADED AS HIGH AS 2064 A BARREL BEFORE LOSING MOMENTUM THE APRIL CONTRACT SETTLED AT 2048 A BARREL 24 CENTS HIGHER FOR THE DAY DESPITE THE VIEW THAT YESTERDAY'S OIL MARKETS WERE TECHNICALLY DRIVEN SOME FUNDAMENTAL FACTORS WERE AT WORK ALTHOUGH THE RALLY HAD BEGUN TO SHOW SOME SIGNS OF FADING IT WAS LAUNCHED LATE LAST WEEK BY INDICATIONS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL FOLLOW THROUGH ON ITS AGREEMENT TO CUT PRODUCTION 14 MILLION BARRELS A DAY SAUDI ARABIA THE OPEC KINGPIN AND SOME OTHERS HAVE ALERTED THEIR CONTRACT CUSTOMERS TO EXPECT REDUCTIONS IN MARCH VOLUMES THE MARKET IS NOW SEEING SOME DEEDS FROM OPEC AND DEEDS ARE STRONGER THAN WORDS SAID PETER GIGNOUX A SENIOR VICE PRESIDENT AT SMITH BARNEY HARRIS UPHAM EUROPE LTD IN LONDON INDICATIVE OF THE FIRMING IN OIL MARKETS THAT HAS RESULTED FROM OPEC EXPECTATIONS US REFINERS ARE INCREASING THE PRICES THEY PAY FOR CRUDE IN THE OIL FIELDS YESTERDAY SEVERAL RAISED PRICES FOR WEST TEXAS INTERMEDIATE THE US BENCHMARK CRUDE 50 CENTS A BARREL TO A NEW 191975 RANGE MEANWHILE SOME FUTURES TRADERS WERE CAUTIOUS IN ADVANCE OF THE AMERICAN PETROLEUM INSTITUTE'S LATEST WEEKLY REPORT ON US OIL INVENTORIES THERE WAS SOME PROFITTAKING IN BOTH LONDON AND NEW YORK BEFORE THE API REPORT WAS RELEASED STILL SAID MR GIGNOUX THIS IS A TEXTBOOK UPTREND AND BULLISH APIS WILL STRENGTHEN IT ACCORDING TO A SURVEY BY DOW JONES INTERNATIONAL PETROLEUM REPORT TRADERS HAD EXPECTED THE API FIGURES TO SHOW DRAWDOWNS OF SOME 33 MILLION BARRELS IN INVENTORIES OF DISTILLATE FUELS WHICH INCLUDE HOME HEATING OIL AND SOME INCREASES IN THOSE FOR GASOLINE AND CRUDE OIL GASOLINE INVENTORIES DID INCREASE BY NEARLY 37 MILLION BARRELS LAST WEEK ACCORDING TO THE API REPORT BUT IN ADDITION TO THE DROP OF NINE MILLION BARRELS IN CRUDE OIL INVENTORIES STOCKS OF DISTILLATES FELL FIVE MILLION BARRELS IN OTHER COMMODITY MARKETS PRECIOUS METALS PLATINUM FUTURES PRICES REBOUNDED SHARPLY RECOUPING SOME OF THEIR DRAMATIC LOSSES MONDAY AND SENDING OTHER PRECIOUS METALS FUTURES PRICES HIGHER ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SETTLED 860 HIGHER AT 34680 AN OUNCE AND PALLADIUM FOR JUNE DELIVERY CLOSED 635 HIGHER AT 10185 AN OUNCE ON THE NEW YORK COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY JUMPED 280 TO SETTLE AT 33160 AN OUNCE WHILE SILVER ENDED 57 CENTS HIGHER AT 3582 AN OUNCE TRADERS SAID YESTERDAY'S FIRMER PERFORMANCE OF THE DOLLAR AGAINST THE YEN HELPED THE FUTURES PRICE OF PLATINUM WHICH IS DENOMINATED IN DOLLARS A STEEP DROP IN THE DOLLAR TO RECORD LOWS AGAINST THE YEN MONDAY HAD HELPED TRIGGER A 19ANOUNCE COLLAPSE IN THE APRIL PLATINUM CONTRACT ON THE NEW YORK MERC AS SPECULATORS IN TOKYO MOVED TO LIQUIDATE THEIR BUY POSITIONS REPORTS THAT JAPAN PLANS TO CUT BACK ITS IMPORTS OF THE WHITE METAL FROM RUSSIA THE WORLD'S SECONDLARGEST SUPPLIER ALSO HAVE BEEN WEIGHING ON THE PLATINUM FUTURES MARKET BUT SOME ANALYSTS SAID SUCH REPORTS WERE EXAGGERATED THERE'S BEEN AN OVERREACTION ON THE DOWNSIDE TO NEWS THAT THE JAPANESE WOULD CUT PLATINUM IMPORTS FROM RUSSIA SAID IAN MACDONALD A SENIOR METALS ANALYST WITH CREDIT SUISSE IN NEW YORK NOW THE MARKET IS JUST CORRECTING ITSELF ONE JAPANESE DEALER IN LONDON SAID HOWEVER THAT JAPAN'S IMPORTS OF PLATINUM WORLDWIDE PLUNGED 20 TO 56 TONS LAST YEAR LIVESTOCK AND MEATS PORK BELLY FUTURES PRICES SOARED AFTER THE US AGRICULTURE DEPARTMENT RELEASED A REPORT SHOWING LOWERTHANEXPECTED STOCKS OF BELLIES WHICH ARE UNCURED BACON THE DEPARTMENT'S MONTHLY COLDSTORAGE REPORT WHICH WAS RELEASED AFTER TRADING ON MONDAY SHOWED WAREHOUSE STOCKS OF ABOUT 649 MILLION POUNDS OF FROZEN PORK BELLIES MOST ANALYSTS HAD BEEN EXPECTING A FAR HIGHER QUANTITY OF MEAT IN STORAGE 675 MILLION POUNDS WAS THE AVERAGE INDUSTRY ESTIMATE THE NUMBER INDICATES STRONGER DEMAND FOR BACON THAN WAS EXPECTED IN JANUARY AND FEBRUARY WHICH ARE TRADITIONALLY PERIODS OF HEALTHY DEMAND FOR THE MEAT THE PRICE OF THE PORKBELLY CONTRACT FOR MAY DELIVERY CLIMBED THE DAILY LIMIT OF TWO CENTS TO 4070 CENTS A POUND LUMBER THE 22DAY STREAK OF CONSECUTIVE LIMITUP PRICE MOVES IN LUMBER FUTURES TRADING CAME TO AN ABRUPT END ANALYSTS SAID THE APPARENT AVAILABILITY OF STOCKS OF LUMBER IN WAREHOUSES AND A PERCEPTION THAT LUMBER IS NOW OVERPRICED CAUSED A BREAK IN WHAT HAS BEEN A RAGING BULL MARKET AT THE CHICAGO MERCANTILE EXCHANGE THE PRICE OF LUMBER FOR MARCH DELIVERY DECLINED 430 TO 43640 PER THOUSAND BOARD FEET BEFORE THIS YEAR THE PRICE OF LUMBER HAD NEVER TOPPED 300 AT 43640 LUMBER PRICES SEEM TOO HIGH TO MANY TRADERS BUT ANALYSTS STILL CAUTION AGAINST SELLING AGGRESSIVELY THE MARKET IS STILL QUITE VOLATILE AND FURTHER INCREASES ARE POSSIBLE THEY SAY 9302240073 930224 WHAT'S NEWS WORLDWIDE THE UN CHIEF AGREED WITH CLINTON ON PLANS FOR A BOSNIA AIRDROP CLINTON CONSULTED WITH THE UN SECRETARYGENERAL ON LAUNCHING PURELY HUMANITARIAN AIRDROPS THAT THE PRESIDENT SAID WOULD CARRY NO DANGER OF DRAWING THE US INTO A DEEPER ENGAGEMENT THE RELIEF AIRDROPS WOULD INVOLVE NO COMBAT IMPLICATIONS WHATEVER CLINTON SAID BOUTROSGHALI WHO HAD VOICED CONCERN ABOUT THE POSSIBILITY OF A WHOLLY SEPARATE US AIRDROP SAID AFTER THE OVAL OFFICE MEETING WE AGREED THERE IS NO PROBLEM AND THAT THERE WOULD BE COMPLETE COORDINATION WITH THE UN THE US MEANWHILE ASKED OTHER NATIONS FOR THEIR SUPPORT THE BOSNIAN SERB ARMY WARNED THE US THAT ITS PLAN TO PARACHUTE EMERGENCY SUPPLIES TO TRAPPED MUSLIMS COULD LEAD TO AN ESCALATION OF FIGHTING ISRAELI OFFICIALS INDICATED THEY WERE WILLING TO SPEED REVIEW OF PALESTINIAN DEPORTATION CASES A MOVE DESIGNED TO AID CHRISTOPHER'S EFFORTS TO REVIVE MIDEAST TALKS ISRAEL ALSO ASSURED THE VISITING US SECRETARY OF STATE THAT THE DEC 17 EXPULSION OF PALESTINIANS WAS AN EXCEPTION TO GOVERNMENT POLICY THE INITIAL PALESTINIAN REACTION WAS COOL CLINTON HAS APPOINTED A TASK FORCE OF SENIOR OFFICIALS AND CABINET SECRETARIES TO DEVELOP SEVERAL OF HIS MAJOR DOMESTIC PROPOSALS SUCH AS ENTERPRISE ZONES AND COMMUNITY BANKS THE SUPREME COURT MADE IT MORE DIFFICULT FOR REPRESENTATIVES OF RACIAL MINORITIES TO DEMAND THAT STATES REDRAW LEGISLATIVE DISTRICTS TO CREATE AREAS IN WHICH NONWHITE VOTERS PREDOMINATE SEPARATELY THE COURT RULED THAT INCREASING A DEFENDANT'S CRIMINAL PUNISHMENT FOR LYING AT TRIAL DOESN'T VIOLATE THE DEFENDANT'S RIGHT TO TESTIFY OVER 10000 PROCOMMUNISTS MARCHED TO THE KREMLIN TO DENOUNCE YELTSIN AND URGE THE MILITARY TO RISE UP AGAINST HIM THE RUSSIAN PRESIDENT WAS ON VACATION OUTSIDE MOSCOW AND HAD NO OFFICIAL REACTION AMONG THE MARCHERS WERE SEVERAL MEN ACCUSED OF LEADING THE FAILED AUGUST 1991 COUP DOCTORS HAVE PLACED A MONITORING TUBE IN DEFENSE SECRETARY ASPIN'S HEART WHICH IS SKIPPING BEATS OCCASIONALLY BUT THEY PREDICT HE WILL RECOVER FULLY THE PENTAGON SAID ASPIN WAS ADMITTED TO THE HOSPITAL SUNDAY AFTER COMPLAINING OF SHORTNESS OF BREATH RELATED TO AN UNDERLYING HEART CONDITION THE WHITE HOUSE IS CIRCULATING PROPOSED LEGISLATION TO VASTLY EXPAND THE POWERS OF THE EPA INCLUDING A PROVISION TO EFFECTIVELY GIVE THE AGENCY'S ADMINISTRATOR VETO POWER OVER REGULATIONS INTRODUCED BY OTHER AGENCIES ACCORDING TO THE PROPOSED BILL THE EPA CHIEF VETO COULD BE OVERRIDDEN ONLY BY THE PRESIDENT A USLED MILITARY COALITION TOLD A TOP SOMALI CLAN LEADER TO REMOVE HIS FIGHTERS FROM THE SOUTHERN CITY OF KISMAYU OR FACE MILITARY ACTION THE ULTIMATUM TO THE WARLORD KNOWN AS GEN MORGAN CAME AFTER HIS SUPPORTERS RECLAIMED PART OF THE CITY IN STREET FIGHTING THAT KILLED AS MANY AS TWO DOZEN PEOPLE ON MONDAY INDIAN POLICE HAVE DETAINED MORE THAN 27000 PEOPLE THROUGHOUT THE COUNTRY TO PREVENT THEM FROM ATTENDING A BANNED HINDU NATIONALIST RALLY AND A RIGHTWING PARTY SAID IT WOULD SUE THE GOVERNMENT FOR REPRESSIVE MEASURES OFFICIALS FEAR THE RALLY CALLED FOR TOMORROW IN A NEW DELHI PARK WILL TRIGGER HINDUMUSLIM RIOTS A CALIFORNIA OFFICIAL SAID THE STATE'S SIXYEAR DROUGHT IS ESSENTIALLY OVER AFTER THE LATEST SERIES OF RECORD SNOWSTORMS AND HEAVY RAINS DEE DAVIS HEAD OF THE STATE'S DROUGHT INFORMATION CENTER SAID CALIFORNIA WAS EXPECTED TO DECLARE THE DROUGHT OFFICIALLY ENDED WITHIN DAYS INDIANA'S REP HAMILTON URGED CLINTON TO IMPOSE US ECONOMIC AND POLITICAL SANCTIONS AGAINST ZAIRE CITING PRESIDENT MOBUTU'S OBSTRUCTION OF THE TRANSITION TO DEMOCRACY HAMILTON WHO HEADS THE HOUSE FOREIGN AFFAIRS COMMITTEE ALSO RECOMMENDED FREEZING MOBUTU'S OVERSEAS BANK ACCOUNTS THE INKATHA FREEDOM PARTY REJECTED PROPOSALS BY THE RIVAL AFRICAN NATIONAL CONGRESS AND THE SOUTH AFRICAN GOVERNMENT CONCERNING A TRANSITION TO NONRACIAL DEMOCRACY AN INKATHA OFFICIAL TOLD AN INTERVIEWER HIS PARTY OPPOSED THE ACCORD REACHED BY THE ANC AND THE GOVERNMENT SAYING A MULTIPARTY CONFERENCE MUST TAKE PLACE DIED VJ SKUTT 90 EXCHAIRMAN AND CHIEF EXECUTIVE OF MUTUAL OF OMAHA COS 9302240072 930224 INTERNATIONAL BRIEF GRAND METROPOLITAN PLC BRITISH FOOD FIRM SEES RISE IN THE DOLLAR HELPING PROFIT GRAND METROPOLITAN PLC CHAIRMAN ALLEN SHEPPARD SAID THE RISE IN THE US DOLLAR AGAINST THE POUND WILL HAVE A SIGNIFICANT FAVORABLE IMPACT ON THE UK FOODANDDRINK GROUP'S PROFIT FOR THE CURRENT FINANCIAL YEAR WHICH ENDS IN SEPTEMBER MR SHEPPARD SAID THE RISE IN CONTINENTAL EUROPEAN CURRENCIES AGAINST THE POUND SINCE THE UK CURRENCY WAS SUSPENDED FROM THE EUROPEAN EXCHANGE RATE MECHANISM WILL BOOST PROFIT TO A LESSER EXTENT THE CURRENCY CHANGES ALSO WILL INCREASE THE SIZE OF GRAND MET'S FOREIGNCURRENCY DEBT MR SHEPPARD SAID BUT THAT WON'T AFFECT PROFIT AND LOSS SPEAKING AT GRAND MET'S ANNUAL GENERAL MEETING MR SHEPPARD REITERATED A STATEMENT THAT OVERALL WE EXPECT MARKET IMPROVEMENT PROGRESSIVELY THROUGH 1993 WE CONTINUE TO BELIEVE THAT THE WORST IS BEHIND US FOR GRAND MET'S NORTH AMERICAN FOOD BUSINESS 9302240071 930224 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 304 40 TO 59 DAYS 305 60 TO 89 DAYS 306 90 TO 119 DAYS 308 120 TO 149 DAYS 310 150 TO 179 DAYS 312 180 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 311 30 DAYS 313 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 264 TWO MONTHS 267 THREE MONTHS 281 SIX MONTHS 301 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 302 ONE MONTH 305 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 299 60 DAYS 3 90 DAYS 302 120 DAYS 304 150 DAYS 305 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 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 1/8 ONE MONTH 3 3/16 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 710 60 DAYS 720 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 714 60 DAYS 723 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 283 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302240070 930224 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 ARCHER DANIELS MIDLAND CO 250 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2013 WAS PRICED AS 7125 AT 99736 TO YIELD 715 A 30 BASIS POINT SPREAD ABOVE THE TREASURY CURVE RATED AA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NATIONSBANK CORP 400 MILLION ISSUE OF SUBORDINATED NOTES DUE FEB 15 2005 WAS PRICED AS 6875 AT 9955 TO YIELD 6932 A 98 BASIS POINT SPREAD ABOVE THE 12YEAR POINT ON THE TREASURY CURVE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PNC BANK KENTUCKY 200 MILLION ISSUE OF NOTES DUE SEPT 1 1994 WAS PRICED AS 375 INITIALLY AT PAR TO YIELD 12 BASIS POINTS ABOVE THE 4 1/4 TREASURY NOTE OF AUGUST 1994 RATED DOUBLEA3 BY BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PNC BANK KENTUCKY IS A UNIT OF PNC BANK CORP OF PITTSBURGH WORLD SAVINGS & LOAN ASSOCIATION 200 MILLION ISSUE OF MEDIUMTERM NOTES DUE MARCH 1 1996 WAS PRICED AS 4 7/8 AT 99765 TO YIELD 496 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS WORLD SAVINGS & LOAN IS A UNIT OF GOLDEN WEST FINANCIAL CORP NEWS AMERICA HOLDINGS INC 500 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2000 WAS PRICED AT PAR TO YIELD 75 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 195 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP PH GLATFELTER CO 150 MILLION ISSUE OF NOTES DUE MARCH 1 1998 WAS PRICED AS 5 7/8 AT 99764 TO YIELD 593 AN 83 BASIS POINT SPREAD ABOVE THE WHENISSUED FIVEYEAR TREASURY NOTE RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH SOLE UNDERWRITERS BEAR STEARNS & CO ILLINOIS TOOL WORKS INC 125 MILLION ISSUE OF NOTES DUE MARCH 1 2000 WAS PRICED AS 5875 AT 99744 TO YIELD 592 A 40 BASIS POINT SPREAD ABOVE TREASURY YIELD CURVE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FLEET FINANCIAL GROUP 150 MILLION ISSUE OF SUBORDINATED NOTES DUE MARCH 1 2003 WAS PRICED AT PAR TO YIELD 6875 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 91 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC GENERAL MOTORS ACCEPTANCE CORP 500 MILLION ISSUE OF NOTES DUE MARCH 1 2000 WAS PRICED AS 7 AT 99782 TO YIELD 704 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 145 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GMAC IS A UNIT OF GENERAL MOTORS CORP SOUTHWESTERN BELL CORP THE SOUTWESTERN BELL TELEPHONE UNIT HAS OFFERED 200 MILLION OF 30YEAR 7625 DEBENTURES DUE MARCH 1 2023 AND 150 MILLION OF SEVENYEAR 6125 NOTES DUE MARCH 1 2000 THE 30YEAR DEBENTURES ARE PRICED TO YIELD 7638 AND ARE CALLABLE AFTER 10 YEARS THE SEVENYEAR NOTES ARE PRICED TO YIELD 6156 AND ARE NOT REDEEMABLE PRIOR TO MATURITY SALOMON BROTHERS FIRST BOSTON CORP GOLDMAN SACHS & CO MERRILL LYNCH & CO AND MORGAN STANLEY ARE COMANAGERS OF THE UNDERWRITING GROUP OFFERING THE NOTES KFW INTERNATIONAL FINANCE INC 250 MILLION ISSUE OF GUARANTEED NOTES DUE MARCH 1 2013 WAS PRICED AS 7 AT 98887 TO YIELD 7105 A 28 BASIS POINT SPREAD ABOVE THE TREASURY CURVE RATED TRIPLEA BY MOODY'S AND S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO COMMERCIAL CREDIT CO 200 MILLION TWOPART ISSUE OF NOTES WAS PRICED THROUGH UNDERWRITERS LED BY SALOMON BROTHERS THE FIRST PART CONSISTING OF 100 MILLION OF NOTES DUE MARCH 1 1998 WAS PRICED AS 570 AT 99871 TO YIELD 573 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF NOTES DUE MARCH 1 2000 WAS PRICED AS 6 1/8 AT 9972 TO YIELD 6175 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 53 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P INTEGRATED CIRCUIT SYSTEMS INC SOLD 14 MILLION COMMON SHARES AT A PRICE OF 1650 EACH IN A SECONDARY OFFERING THE COMPANY ORIGINALLY FILED TO OFFER TWO MILLION SHARES ONE MILLION NEW SHARES WERE OFFERED BY THE COMPANY AND 400000 SHARES WERE SOLD BY SHAREHOLDERS THE COMPANY AND THE SELLING SHAREHOLDERS ALSO GRANTED TO THE UNDERWRITERS INCLUDING ALEX BROWN & SONS INC PRUDENTIAL SECURITIES INC AND PENNSYLVANIA MERCHANT GROUP LTD AN OPTION PURCHASE UP TO AN ADDITIONAL 210000 SHARES TO COVER OVERALLOTMENTS PHOENIX RE CORP OFFERING OF TWO MILLION COMMON SHARES WAS PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CO KLLM TRANSPORT SERVICES INC OFFERING OF ONE MILLION COMMON SHARES WAS PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CO INTERMOUNTAIN POWER AGENCY OF UTAH 6197 MILLION 1993 SERIES A POWER SUPPLY REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A GOLDMAN SACHS GROUP INCLUDED IN THE OFFERING ARE APPROXIMATELY 5285 MILLION FIXEDRATE BONDS WHICH HAVE BEEN PRICED TO YIELD FROM 290 IN 1994 TO 605 FOR ZEROCOUPON BONDS ZEROS DUE IN 2017 THERE ARE ALSO 456 MILLION PERIODIC AUCTION RESET SECURITIES PARS AND 456 MILLION INVERSE FLOATING RATE SECURITIES INFLOS SUCH DERIVATIVES ARE FORMED WHEN A TERM BOND IS DIVIDED INTO TWO EQUAL PORTIONS THEY ARE DUE ON JULY 1 2021 THE YIELD FOR THE PARS WILL BE RESET AT PERIODIC AUCTIONS AFTER EACH OF THOSE AUCTIONS THE YIELD FOR THE INFLOS WILL ALSO CHANGE INVERSELY TO THE MOVEMENT OF THE PARS RATE THE INFLOS HAVE BEEN GIVEN AN INITIAL COUPON OF 858 AND A BOND EQUIVALENT YIELD OF 874 THE ENTIRE ISSUE IS EXPECTED TO BE RATED DOUBLEA BY BOTH MOODY'S AND S&P SAM RAYBURN MUNICIPAL POWER AGENCY OF TEXAS 88 MILLION SERIES 1993B POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS HAVE BEEN PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 520 IN 1997 TO 647 IN 2013 MOODY'S HAS RATED THE ISSUE BAA S&P HAS ASSIGNED A TRIPLEB RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED A TRIPLEBMINUS RATING COMMONWEALTH OF MASSACHUSETTS 517 MILLION 1993 SERIES A GENERAL OBLIGATION REFUNDING BONDS HAVE BEEN PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 380 IN 1996 TO 570 IN 2011 THE BONDS HAVE BEEN RATED SINGLEA BY MOODY'S S&P AND FITCH INVESTORS SERVICE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY 195 MILLION SERIES 1993A NOTES HAVE BEEN PRICED BY A LEHMAN BROTHERS GROUP THE NOTES ARE 300 PRICED AT APPROXIMATELY 10039 AND ARE TO YIELD 260 ON MARCH 1 1994 THEY HAVE BEEN RATED MIG2 BY MOODY'S SP1 BY S&P AND F1 BY FITCH INVESTORS SERVICE CONNECTICUT SPECIAL TAX OBLIGATION REFUNDING BONDS FOR TRANSPORTATION INFRASTRUCTURE PURPOSES HAVE BEEN REPRICED BY A REINOSO & CO GROUP IN RESPONSE TO STRONG DEMAND THE AMOUNT OF THE ISSUE HAS BEEN RAISED TO 5607 MILLION FROM THE INITIAL 415 MILLION AND YIELDS FOR BONDS DUE IN 2007 10 HAVE BEEN LOWERED BY 50 BASIS POINTS FOLLOWING THE REPRICING YIELDS RANGE FROM 265 IN 1994 TO 555 IN 2009 AND 2010 THE INITIAL SCALE OF YIELDS WAS 265 IN 1994 TO 560 IN 2009 AND 2010 MOODY'S HAS RATED THE OFFERING SINGLEA1 AND BOTH S&P AND FITCH INVESTORS SERVICE HAVE ASSIGNED DOUBLEAMINUS RATINGS NORTHERN CALIFORNIA TRANSMISSION AGENCY 1993 SERIES A REVENUE REFUNDING BONDS HAVE BEEN REPRICED BY A LEHMAN BROTHERS GROUP THE TOTAL AMOUNT OF THE ISSUE WAS TRIMMED TO 2404 MILLION FROM 2405 MILLION AT THE INITIAL PRICING DUE TO STRONG DEMAND YIELDS FOR MOST BONDS WERE LOWERED BY 30 TO 50 BASIS POINTS AT THE REPRICING INCLUDED IN THE OFFERING ARE 1633 MILLION FIXEDRATE BONDS WHICH ARE NOW PRICED TO YIELD FROM 325 IN 1995 TO 555 IN 2014 AND 2020 THERE ARE ALSO 3855 MILLION SELECT AUCTION VARIABLE RATE SECURITIES SAVRS AND 3855 MILLION RESIDUAL INTEREST BONDS RIBS THOSE DERIVATIVES ARE FORMED WHEN A TERM BOND IS DIVIDED INTO TWO EQUAL PORTIONS THE FINAL MATURITY FOR BOTH THE SAVRS AND RIBS IS MAY 1 2024 THE RIBS HAVE BEEN GIVEN AN INITIAL COUPON OF 798 AND A BOND EQUIVALENT YIELD OF 800 THIS OFFERING IS FOR THE CALIFORNIAOREGON TRANSMISSION PROJECT THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ILLINOIS 100 MILLION SERIES R BUILD ILLINOIS SALES TAX REVENUE BONDS WERE APPARENTLY WON BY A MORGAN STANLEY GROUP YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 330 IN 1995 TO 570 IN 2018 THIS ISSUE WAS RATED DOUBLEA BY MOODY'S MICHIGAN 900 MILLION FULL FAITH AND CREDIT GENERAL OBLIGATION NOTES HAVE BEEN REPRICED BY A BEAR STEARNS & CO GROUP BOTH THE COUPON AND YIELD WERE TRIMMED AT THE REPRICING IN RESPONSE TO STRONG DEMAND THE NOTES ARE NOW 285 AT 10039 WHICH ARE TO YIELD 218 ON SEPT 30 1993 MOODY'S HAS RATED THE NOTES MIG1 S&P HAS ASSIGNED AN SP1PLUS RATING AND FITCH INVESTORS SERVICE HAS ASSIGNED AN F1PLUS RATING THIS OFFERING IS BACKED BY A STANDBY NOTE PURCHASE AGREEMENT ISSUED BY THE UNION BANK OF SWITZERLAND MORGAN GUARANTY TRUST CO OF NEW YORK CREDIT SUISSE SWISS BANK CORP AND CANADIAN IMPERIAL BANK OF COMMERCE COLUMBUS OHIO 836 MILLION GENERAL OBLIGATION REFUNDING BONDS HAVE BEEN PRICED BY A MERRILL LYNCH & CO GROUP THE ISSUE INCLUDES 772 MILLION SERIES 1993A LIMITEDTAX REFUNDING BONDS AND 64 MILLION SERIES 1993B UNLIMITEDTAX REFUNDING BONDS BOTH PORTIONS OF THE ISSUE HAVE BEEN PRICED TO YIELD FROM 235 IN 1993 TO 550 IN 2010 MOODY'S HAS RATED THE BONDS DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING WAKE COUNTY NC 1241 MILLION SERIES 1993 GENERAL OBLIGATION REFUNDING BONDS WERE APPARENTLY WON BY A GOLDMAN SACHS GROUP YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 300 IN 1995 TO 490 IN 2006 THIS UNINSURED ISSUE WAS RATED TRIPLEA BY BOTH MOODY'S AND S&P CHESAPEAKE HOSPITAL AUTHORITY OF VIRGINIA 54 MILLION SERIES 1993 HOSPITAL FACILITY REFUNDING REVENUE BONDS HAVE BEEN PRICED BY WHEAT FIRST SECURITIES INC OF RICHMOND VA THIS OFFERING IS FOR CHESAPEAKE GENERAL HOSPITAL OVERALL YIELDS RANGE FROM 230 IN 1993 TO 570 IN 2012 AND 2018 ZEROCOUPON BONDS HAVE BEEN PRICED TO YIELD 520 AND 530 AT THEIR RESPECTIVE MATURITIES IN 2004 AND 2005 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FRANCE TELECOM FRANCE 150 MILLION SWISS FRANCS 4 3/4 BONDS DUE MARCH 26 1998 VIA UNION BANK OF SWITZERLAND AT ISSUE PRICE 102 1/2 FEES 1 5/8 CASIO COMPUTER CO LTD JAPAN 350 MILLION OF 2 EUROBONDS DUE MARCH 18 1997 WITH EQUITY WARRANTS ATTACHED AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD EACH 10000 BOND HAS TWO WARRANTS ATTACHED EXERCISABLE FROM APRIL 1 1993 TO MARCH 4 1997 TO BUY CASIO SHARES AT 2 1/2 PREMIUM OVER CLOSING SHARE PRICE MARCH 2 WHEN FINAL TERMS ARE SET FEES 2 1/4 BPB INDUSTRIES PLC UK 64 MILLION OF 7 1/4 SUBORDINATED CONVERTIBLE EUROBONDS DUE AUG 25 2008 VIA NM ROTHSCHILD & SONS LTD CONVERSION PRICE 258 PENCE PER SHARE A PREMIUM OF 157 OVER COMPANY'S ORDINARY SHARE PRICE ON LONDON STOCK EXCHANGE CALLABLE AT PAR FROM SEPT 8 1998 FEES 2 1/2 BANK OF GREECE SOVEREIGN 300 MILLION EURONOTES AT 3/4 POINT ABOVE SEMIANNUAL LONDON INTERBANK OFFERED RATE FOR DOLLARS REOFFERED AT 9970 DUE MARCH 2003 VIA CREDIT SUISSE FIRST BOSTON LTD PUT OPTION IN MARCH 1995 AND EVERY TWO YEARS THEREAFTER AT PAR YIELDING TO FIRST PUT DATE OF LIBOR PLUS 91 BASIS POINTS BONDS CALLABLE MARCH 1995 AND EVERY TWO YEARS THEREAFTER AT 100 1/4 TO YIELD LIBOR PLUS 103 BASIS POINTS FEES 1/4 TOYOTA MOTOR CORP JAPAN 15 BILLION OF EUROBONDS DUE MARCH 17 1998 AS 5 5/8 AT ISSUE PRICE PRICE 101333 VIA MERRILL LYNCH INTERNATIONAL AND NOMURA INTERNATIONAL PLC OFFERED INITIALLY AT 99708 TO YIELD 5615 38 BASIS POINTS ABOVE WHENISSUED FIVEYEAR US TREASURY FEES 1 7/8 TREASURY CORP OF VICTORIA AUSTRALIA 150 MILLION AUSTRALIAN OF 8 3/4 EUROBONDS DUE APRIL 7 2003 AT ISSUE PRICE 10035 VIA HAMBROS BANK GUARANTOR STATE OF VICTORIA FEES 2 1/8 CITY OF VIENNA AUSTRIA 125 MILLION CANADIAN OF 7 1/4 BONDS DUE MARCH 23 1998 AT ISSUE PRICE 101185 VIA SWISS BANK CORP REOFFERED AT 9956 TO YIELD 736 ANNUALLY A SPREAD OF 47 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT NOTE FEES 1 7/8 BHF FINANCE BV GERMAN PARENT 200 MILLION MARKS OF 675 EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE 101 VIA BERLINER HANDELS& FRANKFURTER BANK BHF BANK GUARANTOR BHF BANK FEES NOT DISCLOSED HERAEUS INTERNATIONAL FINANCE NV GERMAN PARENT 100 MILLION MARKS OF 7 1/4 EUROBONDS DUE MARCH 22 2000 AT ISSUE PRICE 10250 VIA DEUTSCHE BANK GUARANTOR HERAEUS HOLDINGS GMBH FEES 2 1/4 9302240069 930224 FOUR JAPANESE BANKS UNITS HAVE DEBT PUT ON S&P CREDITWATCH LONDON STANDARD & POOR'S CORP SAID IT PLACED THE DEBT RATINGS OF FOUR JAPANESE TRUST BANKS AND AFFILIATES ON CREDITWATCH WITH NEGATIVE IMPLICATIONS CITING THE INCREASINGLY TOUGH OPERATING ENVIRONMENT FOR FINANCIAL INSTITUTIONS IN JAPAN THE RATINGS UNDER REVIEW INCLUDE MITSUBISHI TRUST & BANKING CORP'S SINGLEAPLUS LONGTERM AND A1 SHORTTERM RATING MITSUI TRUST & BANKING CO'S SINGLEA LONGTERM AND A1 SHORTTERM RATING SUMITOMO TRUST & BANKING CO'S SINGLEAPLUS LONGTERM AND A1 SHORTTERM RATING AND YASUDA TRUST & BANKING CO'S SINGLEAMINUS LONGTERM AND ITS A2 SHORTTERM RATING S&P SAID THE BANKS ARE FACED WITH A HIGH AND GROWING LEVEL OF PROBLEM LOANS REFLECTING A STAGNANT REAL ESTATE MARKET AND THE SLOWDOWN IN THE JAPANESE ECONOMY THE BANKS' ABILITY TO WEATHER THIS CHANGE IS COMPLICATED BY THE FACT THAT THEIR PROFITABILITY RATIOS ARE UNDER PRESSURE IT ADDED 9302240068 930224 INTERNATIONAL BRIEF MANNESMANN AG GERMAN FIRM PLANS TO POST DECLINE IN 1992 EARNINGS MANNESMANN AG HURT BY RECESSION AND HIGH DEVELOPMENT COSTS FOR ITS CELLULAR TELEPHONES VENTURE WILL REPORT A DROP IN ITS 1992 EARNINGS THE GERMAN INDUSTRIAL CONCERN DIDN'T RELEASE ANY SPECIFIC EARNINGS AND DIVIDEND FIGURES BUT SAID ITS 1992 GROUP OPERATING EARNINGS WERE CLEARLY BELOW PREVIOUSYEAR LEVELS A SPECIFIC REPORT ON PROFIT WILL BE RELEASED AFTER A MAY 4 MEETING OF THE SUPERVISORY BOARD A SPOKESMAN SAID WEAK ECONOMIES IN KEY MARKETS WERE THE MAIN REASON FOR THE DECLINE IN EARNINGS AS CHEAP EASTERN EUROPEAN IMPORTS AGGRAVATED THE PROBLEMS IN THE LARGE STEELTUBING DIVISION AND THE SLUGGISH GERMAN AUTOMOBILE INDUSTRY WEAKENED DEMAND IN THE GROUP'S AUTO PARTS UNIT 9302240067 930224 TECHNOLOGY BRIEF AMERICAN SUPERCONDUCTOR CORP MIT GETS PATENT LICENSED TO FIRM FOR SUPERCONDUCTORS AMERICAN SUPERCONDUCTOR CORP WATERTOWN MASS SAID THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY RECEIVED A US PATENT LICENSED EXCLUSIVELY TO AMERICAN SUPERCONDUCTOR RELATED TO SUPERCONDUCTING WIRES THE PATENT COVERS COMPOSITES OF HIGHTEMPERATURE SUPERCONDUCTORS AND SUCH NOBLE METALS AS SILVER AMERICAN SUPERCONDUCTOR SAID A NUMBER OF COMPANIES SEEKING TO COMMERCIALIZE NEW SUPERCONDUCTORS ARE EMPLOYING SUCH COMPOSITES WHICH ENABLE BRITTLE SUPERCONDUCTING CERAMICS TO BE FASHIONED INTO FLEXIBLE WIRES AMERICAN SUPERCONDUCTOR SAID THE MIT PATENT COVERS VARIOUS COMPOSITES OF CERAMIC SUPERCONDUCTORS AND NOBLE METALS REGARDLESS OF THE PROCESS USED TO MANUFACTURE THE FINAL PRODUCT CERAMIC SUPERCONDUCTORS WHICH CARRY ELECTRICITY WITHOUT RESISTANCE WHEN COOLED PROMISE MORE EFFICIENT ELECTRIC MOTORS POWER TRANSMISSION CABLES AND OTHER NEW ELECTRICAL TECHNOLOGIES 9302240066 930224 BUSINESS BRIEF HEXCEL CORP RESTRUCTURING SLOWED SALES RESULT IN 4THQUARTER LOSS HEXCEL CORP POSTED A SLIGHTLY WIDERTHANEXPECTED FOURTHQUARTER NET LOSS ON EARNINGS THAT WERE DRAGGED DOWN BY RESTRUCTURING CHARGES AND SLOWED SALES THE INDUSTRIAL MATERIALS COMPANY POSTED A NET LOSS OF 242 MILLION OR 332 A SHARE A YEAR EARLIER HEXCEL HAD NET INCOME OF 11 MILLION OR 15 CENTS A SHARE REVENUE SANK 86 TO 885 MILLION FROM 969 MILLION HEXCEL OF PLEASANTON CALIF SAID THE REVENUE DROP WAS BECAUSE OF UNEXPECTED CANCELED AND DELAYED SHIPMENTS TO CUSTOMERS WHOSE PRODUCTION SCHEDULES HAD SLOWED THE COMPANY ALSO SAID ITS RESTRUCTURING CHARGES OF 179 MILLION WERE 2 MILLION MORE THAN PREVIOUSLY ESTIMATED BECAUSE OF HIGHERTHANEXPECTED COSTS FOR A COMPUTER SYSTEMS UPGRADE IN DECEMBER HEXCEL HAD ESTIMATED A QUARTERLY LOSS OF ABOUT 315 CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING HEXCEL CLOSED AT 850 DOWN 125 CENTS 9302240065 930224 BUSINESS BRIEF ROYAL APPLIANCE MANUFACTURING CO FIRM'S STOCK PLUNGES 38 ON NEWS OF WEAK 4TH PERIOD ROYAL APPLIANCE MANUFACTURING CO'S STOCK PLUMMETED 38 TODAY AFTER THE COMPANY ANNOUNCED WEAK FOURTHQUARTER EARNINGS AND PREDICTED BUT DIDN'T QUANTIFY A FIRSTQUARTER LOSS THE STOCK CLOSED AT 6875 A SHARE DOWN 425 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT FOR THE QUARTER ENDED DEC 31 THE VACUUM CLEANER COMPANY IN CLEVELAND EARNED 99 MILLION OR 41 CENTS A SHARE ON A 26 RISE IN SALES TO 1413 MILLION IN THE YEARAGO QUARTER ROYAL EARNED 134 MILLION OR 53 CENTS A SHARE ON SALES OF 1122 MILLION THE DROP WAS ATTRIBUTED TO INCREASED SPENDING ON ADVERTISING IN THE RECENT QUARTER ADVERTISING AND PROMOTION COSTS WERE 287 MILLION UP 744 FROM THE YEARAGO QUARTER'S COST OF 164 MILLION THE COMPANY PLANS TO SPEND EVEN MORE ON ADVERTISING AND PROMOTION NEXT QUARTER WHICH IS THE REASON FOR THE EXPECTED LOSS ROYAL SAID IN A NEWS RELEASE 9302240064 930224 INTERNATIONAL BRIEF LVMH MOET HENNESSY LOUIS VUITTON FIRM CUTS SOME AREAS' PRICE ON TWO CHAMPAGNE LABELS EUROPE'S VIOLENT CURRENCY FLUCTUATIONS AND A DEPRESSED CHAMPAGNE MARKET HAVE FORCED FRENCH LUXURY GROUP LVMH MOET HENNESSY LOUIS VUITTON SA TO CUT WHOLESALE PRICES FOR TWO OF ITS MAJOR CHAMPAGNE LABELS IN FRANCE SPAIN GERMANY AND SWITZERLAND A COMPANY SPOKESWOMAN CONFIRMED THE COMPANY WOULDN'T DIVULGE ITS PERBOTTLE WHOLESALE PRICES BUT SAID FRENCH PRICES HAVE COME DOWN 15 THE CUTS AS WELL AS MORE MODEST PRICE INCREASES IN ITALY AND THE UK WERE MADE TO BE ABLE TO HARMONIZE PRICES IN DIFFERENT MARKETS BECAUSE OF THE SHARP CHANGES IN CURRENCY PARITIES SINCE LAST FALL IN EUROPE SHE SAID BUT SHE ALSO CONFIRMED THAT IN AN OVERSUPPLIED CHAMPAGNE MARKET THE PRICE CUTS WERE INTENDED TO HELP MOVE PRODUCT AND TO UNDERCUT PARALLEL SELLERS WHO CAN NOW BUY FRENCH LVMH CHAMPAGNE IN THE UK WITH CHEAP POUNDS AND IMPORT IT FOR SALE IN FRANCE PROFITABLY 9302240063 930224 INTERNATIONAL BRIEF NATIONAL WESTMINSTER BANK PLC PRETAX PROFIT JUMPED IN '92 AIDED BY TURNAROUND IN US NATIONAL WESTMINSTER BANK PLC SAID PRETAX PROFIT JUMPED TO 405 MILLION 5911 MILLION IN 1992 FROM 110 MILLION A YEAR EARLIER HELPED BY A TURNAROUND AT ITS US UNIT AND DEVELOPMENT OF ITS CAPITAL MARKETS OPERATIONS THE RESULTS WERE IN LINE WITH EXPECTATIONS THE BRITISH CONCERN LEFT ITS FULLYEAR DIVIDEND PAYMENT UNCHANGED AT 175 PENCE A SHARE CHAIRMAN LORD ALEXANDER EXPRESSED SOME SATISFACTION WITH THE PROFIT GAIN NOTING THAT IT CAME AGAINST A BACKDROP OF RECESSION IN THE GROUP'S MAIN BRITISH MARKETS INCOME FROM INTEREST AND NONINTEREST SOURCES ROSE 10 TO 689 BILLION EXCEPTIONAL ITEMS LOPPED 135 MILLION OFF EARNINGS AT THE PRETAX LEVEL COMPARED WITH ONLY 89 MILLION A YEAR EARLIER ONE BANK ANALYST SAID THE ONLY BEARISH SURPRISE WAS A 15 RISE IN BAD DEBTS TO 19 BILLION NATWEST TRIMMED 7200 JOBS FROM ITS PAYROLL IN 1992 THE GROUP HAS ANNOUNCED PLANS TO ELIMINATE 4000 JOBS IN 1993 9302240062 930224 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL MULTINATIONAL COMPANIES COULD FEEL SHARP PAINS FROM CLINTON'S PROPOSALS THE TAX BITE WOULD RAISE RELATIVELY LITTLE 85 BILLION IN FIVE YEARS THE TREASURY SAYS A FIRST IMPRESSION A HODGEPODGE OF TINKERING SAYS WASHINGTON LAWYER DAVID ROSENBLOOM OF CAPLIN & DRYSDALE BUT EACH NIP RAISES BUSINESS CONCERNS ONE UNEXPECTED PROPOSAL WOULD BAR US COMPANIES FROM USING EXCESS CREDITS FROM HIGH FOREIGN TAXES ON EARNINGS RECEIVED AS DIVIDENDS TO OFFSET US TAXES ON ROYALTIES FROM ABROAD ROYALTIES FROM TECHNOLOGY LICENSES BEAR LITTLE FOREIGN TAX AND GENERATE FEW FOREIGNTAX CREDITS THEMSELVES THE MEASURE IS HARSH FOR COMPANIES WITH UNUSABLE CREDITS SAYS ELI FINK OF DELOITTE & TOUCHE CPAS THE AIM IS TO GET COMPANIES TO EXPORT PRODUCTS NOT MANUFACTURING TECHNOLOGY HE SAYS BUT THAT IGNORES THE NEEDS OF A GLOBAL ECONOMY ANOTHER MEASURE WOULD TAX CERTAIN FOREIGN EARNINGS RETAINED ABROAD THAT AREN'T TAXED NOW UNTIL THEY REACH THE US AS DIVIDENDS THAT COULD LEAD COMPANIES TO INVEST THE CASH IN THEIR FOREIGN BUSINESSES RATHER THAN SEE THE US TAX IT FINK SAYS THE PROPOSALS WOULD FURTHER RESTRICT DEDUCTIONS BY FOREIGNCONTROLLED COMPANIES OF INTEREST PAID TO FOREIGN LENDERS MORTGAGE INTEREST OFFERS A ONETIME DEDUCTION DODGE CPAS SAY LAST WEEK THIS COLUMN NOTED THAT YOU MAY NOT INCREASE PERSONAL DEDUCTIONS BY PREPAYING INTEREST FOR A FUTURE YEAR BUT MANY CPAS POINT OUT THAT YOU MAY DEDUCT MORE THAN 12 MONTHS' INTEREST FOR ONE YEAR IF YOU PAY INTEREST OWED FOR PAST YEARS IF YOU WERE IN ARREARS SAY THIS ALLOWS A MANEUVER CPAS SAY THEY USE FOR A ONETIME BENEFIT WHEN PAYMENTS ARE DUE ON THE FIRST OF THE MONTH THE INTEREST PAID IN SUCH CASES IS OWED FOR THE PRIOR MONTH THUS IF YOU MAKE 12 PAYMENTS WHEN DUE AND THEN ON DEC 31 MAKE THE PAYMENT DUE JAN 1 YOU MAY DEDUCT 13 MONTHS' INTEREST THAT YEAR BECAUSE ALL THE INTEREST RELATES TO THAT YEAR OR THE PRIOR ONE THE CATCH EITHER YOU DEDUCT ONLY 11 MONTHS' INTEREST THE NEXT YEAR OR YOU MUST ACCELERATE EVERY JAN 1 PAYMENT THEREAFTER ALSO YOU MUST RECONCILE ON EACH RETURN THE DIFFERENCE BETWEEN THE INTEREST YOU DEDUCT AND THE SUM THE LENDER REPORTS TO THE IRS ON FORM 1098 ELECTRONIC FILING SHOULD BE CHEAPER AND MORE ACCESSIBLE THE GAO SAYS ELECTRONIC FILING IS THE WAVE OF THE FUTURE THE IRS EXPECTS TO GET 14 MILLION PERSONAL RETURNS THAT WAY THIS YEARBUT OF A TOTAL OF 117 MILLION THE GENERAL ACCOUNTING OFFICE SAYS THE IRS LACKS A STRATEGY TO APPEAL TO FILERS WHO DON'T NEED FAST REFUNDS THE MAIN SELLING POINT MUST PAY TAX OR WON'T OR CAN'T PAY THE FEES INVOLVED THE IRS HAS FOCUSED PROMOTIONS ON RETURN PREPARERS AND TRANSMITTERS THE GAO URGES IT TO FIND WAYS TO PROMOTE LOWCOST FILING SOME WAYS GET EMPLOYERS AND BANKS TO OFFER FILING TO EMPLOYEES AND CUSTOMERS LET PERSONALCOMPUTER OWNERS FILE DIRECTLY OFFER FREE FILING AT IRS OFFICES THE IRS AGREES WITH THE RECOMMENDATIONS AND SAYS IT IS WORKING ON THESE AND OTHER STEPS BUT IT SAYS FREE FILING AT IRS OFFICES A LONGTERM GOAL WOULD PRESENT PROHIBITIVE COSTS NOW IRS COMPUTERS CAN HANDLE UP TO 25 MILLION ELECTRONIC FILERS NOW THAT SHOULD BE ENOUGH CAPACITY TO MEET NEEDS THROUGH 1995 THE IRS SAYS NEVER THE TWAIN A WOMAN WHO HAD FILED JOINT RETURNS WITH A FORMER COMPANION CAN'T ESCAPE LIABILITY FOR HIS TAX DEBTS BY DENYING SHE WAS MARRIED TO HIM BECAUSE THE IRS ACCEPTED THE RETURNS AS JOINT A FEDERAL COURT HELD YET SHE CAN'T CLAIM TO BE AN INNOCENT SPOUSE BECAUSE THE STATES WHERE THEY LIVED DIDN'T RECOGNIZE COMMONLAW MARRIAGES DIRECT DEPOSIT OF REFUNDS IN BANK ACCOUNTS IS OFFERED IN AN IRS TEST TO CUSTOMERS OF OLD STONE FEDERAL SAVINGS BANK IN RHODE ISLAND AND OF OHIO SAVINGS BANK CLEVELAND WHO FILE PAPER RETURNS THE IRS OFFERS SUCH DEPOSITS ROUTINELY TO ANYONE WHO FILES ELECTRONICALLY ALASKA SIGNS ON SO NOW 43 STATES AND THE DISTRICT OF COLUMBIA HAVE JOINED IN A NEW UNIFORM AGREEMENT FOR THE EXCHANGE OF TAX INFORMATION ACCORDING TO THE FEDERATION OF TAX ADMINISTRATORS JERRY LEE LEWIS IS OUT OF BANKRUPTCY BUT NOT OUT OF THE IRS'S REACH THE IRS SAYS THE ROCKANDROLL SINGER OWES 16 MILLION FOR 10 OF THE YEARS FROM 1978 TO 1991 IT RECENTLY WON A BANKRUPTCYCOURT RULING THAT HE WILLFULLY EVADED TAXES INTEREST AND PENALTIES FOR 197780 AND 198284 HE WAS TRIED AND ACQUITTED IN 1984 ON CRIMINAL CHARGES FOR AN EARLIER YEAR LEWIS FACES NO CRIMINAL CHARGES NOW BUT HE DIDN'T TESTIFY FOR CONSTITUTIONAL PROTECTION AT A BANKRUPTCYCOURT TRIAL LAST OCTOBER HE SOUGHT THE TRIAL TO GET THE COURT IN MEMPHIS TO CANCEL HIS TAX DEBTS EARLIER THE COURT HAD DISPOSED OF ALL OF LEWIS'S DEBTS EXCEPT TAXES IN A VOLUNTARY BANKRUPTCY PROCEEDING AT THE TRIAL IN OCTOBER THE IRS ARGUED THE COURT COULDN'T DISCHARGE THE TAX DEBTS BECAUSE OF LEWIS'S EVASION EFFORTS BANKRUPTCY JUDGE BROWN RECENTLY AGREED HE HELD THAT AMONG OTHER THINGS LEWIS TRIED TO SHIELD MONEY CARS AND OTHER ASSETS FROM THE IRS BY PUTTING THEM IN THE NAMES OF OTHER PEOPLE LEWIS'S ATTORNEY COULDN'T BE REACHED FOR COMMENT ON THE RULING 9302240061 930224 BUSINESS BRIEF SERVAM CORP UNIT REACHES AGREEMENT ON AMENDED REORGANIZATION SERVICE AMERICA CORP A UNIT OF SERVAM CORP SAID IT REACHED AGREEMENT ON AN AMENDED REORGANIZATION PLAN SERVICE AMERICA A STAMFORD CONN VENDING AND DINING CONCERN SAID IT PLANS TO FILE THE AMENDED PLAN IN US BANKRUPTCY COURT IN BRIDGEPORT CONN IN THE NEXT TWO WEEKS SERVICE AMERICA HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM CREDITORS UNDER THE AMENDED PLAN SERVICE AMERICA WOULD CONTINUE ITS 151 MILLION TERM LOAN AND REVOLVING CREDIT LINE WITH GENERAL ELECTRIC CAPITAL CORP ITS SENIOR LENDER GE CAPITAL A UNIT OF GENERAL ELECTRIC CO WOULD BUY 25 MILLION OF INCREASINGRATE SENIOR PREFERRED STOCK AND GET WARRANTS FOR 70 OF THE COMMON STOCK OUTSTANDING ON THE PLAN'S EFFECTIVE DATE ALL UNSECURED CREDITORS INCLUDING TRADE CREDITORS AND HOLDERS OF 1314 UNSECURED SUBORDINATED NOTES WOULD SHARE 15 MILLION AND 30 OF THE COMPANY'S COMMON STOCK WITHIN 30 DAYS OF THE EMERGENCE FROM BANKRUPTCY TRADE CREDITORS WHO AGREE TO PROVIDE 30DAY TRADE TERMS WOULD ALSO GET ON A PRORATA BASIS 10 MILLION PAYABLE IN 5 MILLION INSTALLMENTS ON THE FIRST AND SECOND ANNIVERSARY OF THE PLAN'S EFFECTIVE DATE HOLDERS OF COMMON OR PREFERRED STOCK AND WARRANTS WOULDN'T GET ANYTHING 9302240060 930224 LAW LEGAL BEAT ADVOCATES FOR MORE FEDERAL JUDGES HAVE POLITICAL WIND AT THEIR BACKS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANY JUDGES THINK 846 FEDERAL JUDGESHIPS JUST AREN'T ENOUGH AND THEY MAY HAVE FOUND THE RIGHT TIME TO PUSH FOR THE CREATION OF DOZENS MORE IN RECENT YEARS A NUMBER OF PROPOSALS HAVE QUIETLY EMERGED TO INCREASE THE NUMBER OF FEDERAL JUDGESHIPS OR RESTRUCTURE THE FEDERAL COURTS AS THE SYSTEM HAS COME CLOSE TO GRIDLOCK UNDER THE WEIGHT OF BURGEONING FILINGS THESE DAYS PROPONENTS OF A GREATLY ENLARGED JUDICIARY HAVE THE ADVANTAGE OF A NEW DEMOCRATIC ADMINISTRATION AND CONGRESS EAGER TO MAKE UP FOR LOST TIME AFTER A DOZEN YEARS OF REPUBLICAN CONTROL OVER JUDICIAL SELECTION AS A RESULT SOME OBSERVERS ARE BRACING FOR BIG CHANGES WE STAND ON THE THRESHOLD OF A POTENTIALLY LARGE EXPANSION OF THE JUDICIARY WHICH WILL GREATLY CHANGE ITS CHARACTER SAYS WILLIAM SCHWARZER DIRECTOR OF THE FEDERAL JUDICIAL CENTER THE RESEARCH ARM OF THE FEDERAL COURTS THE POLITICS INDICATE THAT THIS ADMINISTRATION WILL WANT TO APPOINT A LOT OF JUDGES AS ONE INDICATION THE JUDICIAL CONFERENCE OF THE US THE POLICYMAKING BODY OF THE FEDERAL COURTS IS MEETING NEXT MONTH TO CONSIDER WHETHER TO SEEK CONGRESSIONAL APPROVAL TO ADD 10 JUDGES TO THE 28MEMBER 9TH US CIRCUIT COURT OF APPEALS THE PROPOSED EXPANSION WHICH HAS ALREADY BEEN CLEARED BY A KEY COMMITTEE OF THE CONFERENCE IS CONSIDERED HIGHLY SYMBOLIC FOR FUTURE GROWTH OF THE FEDERAL BENCH BECAUSE THE SAN FRANCISCOBASED COURT IS ALREADY THE LARGEST OF THE FEDERAL APPEALS COURTS AND SOME OBSERVERS THINK THE PROPOSAL COULD WELL BECOME THE BASIS OF LEGISLATION ADDING MORE FEDERAL JUDGES LATER THIS YEAR OR NEXT THE CONFERENCE ALREADY HAS VOTED TO REQUEST 25 OTHER JUDGESHIPS FOR OTHER COURTS MEANWHILE A FEDERAL APPEALS JUDGE IN CALIFORNIA IS LOBBYING CONGRESS TO DOUBLE THE NUMBER OF FEDERAL APPELLATE JUDGES NATIONALLY CURRENTLY THERE ARE 179 APPEALS COURT POSITIONS FOR NOW THE WHITE HOUSE AND THE SENATE JUDICIARY COMMITTEE SAY THEY'RE SWAMPED WITH FINDING NOMINEES FOR ABOUT 115 FEDERAL COURT VACANCIES A RECORD NUMBER LEFT OVER FROM THE BUSH ADMINISTRATION A PROCESS THAT WON'T GET ROLLING UNTIL EARLY SUMMER AND SOME FACTORS MILITATE AGAINST A BIG INCREASE IN JUDGES VERY SOON MR CLINTON'S VISION FOR THE FEDERAL COURTS ISN'T YET CLEAR FOR ONE THING AND CONSIDERING THAT THE ANNUAL TOTAL COST OF A FEDERAL JUDGESHIP RUNS UPWARD OF 1 MILLION BUDGETARY CONCERNS COULD INTERVENE NONETHELESS IF THE CASELOADS ARE NOT DECREASED AND THE BACKLOGS PERSIST YOU WILL SEE SOME REAL EFFORT TO EXPAND THE JUDICIARY BOTH AT THE DISTRICT COURT LEVEL AND THE CIRCUIT COURT LEVEL PREDICTS A SENATE JUDICIARY STAFFER AND ROBERT KATZMANN A BROOKINGS INSTITUTION VISITING FELLOW WHO WATCHES THE COURTS SEES EXTRA PRESSURE TO ADD JUDGES IF CONGRESS AS EXPECTED RESUSCITATES A CRIME BILL FROM LAST YEAR THAT EXPANDS THE KINDS OF CASES THAT FEDERAL COURTS HEAR WE WILL ALMOST CERTAINLY SEE AN INCREASE IN THE SIZE OF THE FEDERAL JUDICIARY EITHER FOR REASONS OF SPIRALING CASE LOADS OR FOR POLITICAL FACTORS OR A COMBINATION OF BOTH HE SAYS HISTORY ALONE SUGGESTS A BIG INCREASE HE NOTES BASED ON A TENDENCY OF RECENT ADMINISTRATIONS TO ADD JUDGES INCLUDING A BIG JUMP IN 1990 CERTAINLY FEDERAL COURT FILINGS SHOW OMINOUS TRENDS FOR THE 12 MONTHS ENDED SEPT 30 THE LATEST DATA CIVIL CASES FILED IN THE US DISTRICT COURTS WHICH ACCOUNT FOR ABOUT 80 OF TOTAL FILINGS JUMPED 86 THE FIRST SIZABLE INCREASE SINCE 1985 AT THE SAME TIME STEPPEDUP FEDERAL DRUGENFORCEMENT EFFORTS HAVE LEFT JUDGES SORTING OUT THE MOST DIFFICULT AND BURDENSOME CRIMINAL CASE LOAD WE EVER HAVE HAD ACCORDING TO JUDGE SCHWARZER BUT THE NOTION OF ADDING MANY MORE JUDGES IS ANATHEMA TO SOME JUDGES WHO ARE CONCERNED ABOUT DILUTING THE QUALITY OF THE BENCH AND THE COHERENCE OF FEDERAL LAW THE DEBATE ALSO GOES TO THE HEART OF WHETHER FEDERAL JUDGES OUGHT TO RETAIN SOME SEMBLANCE OF THEIR TRADITIONAL ROLE AS A SORT OF ELITE CORPS OF JURISTS HANDLING A SELECT FEW CASES OF GREAT NATIONAL IMPORT OR ASSUME THE MANTLE OF A HIGHPROFILE PEOPLES' COURT WITH NO PROBLEM TOO SMALL TO TACKLE THE LIKES OF CHIEF JUSTICE WILLIAM REHNQUIST HAVE SUGGESTED THAT A PERMANENT CAP OF 1000 FEDERAL JUDGES IS DESIRABLE WHILE A BLUERIBBON FEDERAL COURT COMMISSION URGED CONGRESS IN 1990 TO START CUTTING BACK ON FEDERAL JURISDICTION AND SHIFT MORE OF THE BURDEN TO THE STATE COURTS PROPONENTS OF THIS VIEW ARGUE THAT STATE COURTS COULD EASILY ABSORB A LARGE PERCENTAGE OF FEDERAL CASES SINCE THEY ARE SO MUCH BIGGER TO BEGIN WITH JON NEWMAN A HARTFORD CONN FEDERAL APPELLATE JUDGE SAYS BIG COURTS ARE ALSO INHERENTLY INEFFICIENT BOASTING THAT HIS OWN CIRCUIT HAS A HEAVIER CASELOAD PER JUDGE THAN THE 9TH CIRCUIT BUT THAT IT RESOLVES CASES MORE THAN TWICE AS QUICKLY ON AVERAGE EXPANDING THAT WEST COAST COURT WILL SIMPLY SIGNAL A VIRTUALLY UNCHECKED GROWTH THROUGHOUT THE FEDERAL JUDICIARY JUDGE NEWMAN SAYS BUT OTHERS FEEL THESE VIEWS REFLECT A SORT OF INTELLECTUAL SNOBBERY AND A FAILURE TO FACE UP TO THE REALITY OF THE ENHANCED ROLE OF THE FEDERAL BENCH IT IS NOT UP TO THE JUDGES TO DECIDE WHAT THEY DO THEY ARE GIVEN A PRIVILEGE TO SERVE TO DO WHAT CONGRESS THE EXECUTIVE BRANCH AND THE PEOPLE WANT THE FEDERAL COURT SYSTEM TO DO SAYS STEPHEN REINHARDT A FEDERAL APPEALS JUDGE IN LOS ANGELES SOME OF THEM WOULD PREFER TO DO ONLY ELITE KINDS OF WORK OR WHAT THEY CONSIDER TO BE ELITE JUDGE REINHARDT'S RADICAL SOLUTION IS A DOUBLING OF THE NUMBER OF FEDERAL APPELLATE JUDGES TO COUNTER WHAT HE SEES AS A TREND TOWARDS SECONDCLASS JUDGING JUDGE REINHARDT HIMSELF WAS APPOINTED TO THE BENCH BY PRESIDENT CARTER IN 1980 BUT SAYS HIS IDEAS TRANSCEND POLITICS I THINK IT WOULD PROBABLY BRING A BALANCE TO THE COURTS HE SAYS OF HIS PROPOSAL IT WOULD NO DOUBT MAKE THE COURTS MORE DEMOCRATIC THAN REPUBLICAN BUT THAT IS NOT SO BAD JUDGES WHO ARE TRYING TO DECIDE WHETHER CRIMINALS WILL BE VIOLENT IF FREED ARE ALMOST BETTER OFF FLIPPING A COIN THAN LISTENING TO MENTALHEALTH SPECIALISTS ACCORDING TO A STUDY RELEASED TODAY BUT THE STUDY PUBLISHED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION ALSO FOUND THAT THE SPECIALISTS' PREDICTIONS ARE FAR MORE ACCURATE IN SOME INSTANCES THAN PREVIOUS STUDIES HAVE LED LAWYERS TO BELIEVE THE STUDY BY THREE UNIVERSITY OF PITTSBURGH PSYCHOLOGY PROFESSORS SHOWS THAT PSYCHIATRISTS SOCIAL WORKERS AND OTHER MENTALHEALTH SPECIALISTS WERE WRONG 47 OF THE TIME WHEN THEY WARNED THAT A MENTAL PATIENT WOULD COMMIT VIOLENCE IN THE NEXT SIX MONTHS THE SPECIALISTS WERE WRONG 64 OF THE TIME WHEN THEY SAID A PATIENT WOULDN'T BE VIOLENT AT ALL IN THE SAME TIME PERIOD ALTHOUGH THE NUMBERS HARDLY SEEM FLATTERING TO THE MENTALHEALTH COMMUNITY CONVENTIONAL WISDOM AMONG PROSECUTORS AND CRIMINAL DEFENSE LAWYERS HAS BEEN THAT MENTALHEALTH SPECIALISTS ARE WRONG TWO OUT OF THREE TIMES OR 66 OF THE TIME WHEN THEY SAY A PERSONS WILL COMMIT VIOLENCE THAT FIGURE COMES FROM STUDIES DONE IN THE 1970S THAT USED POLICE REPORTS AND OTHER DOCUMENTS AS PROOF OF VIOLENCE THE NEW STUDY WHICH INVOLVED 357 PATIENTS AND A CONTROL SAMPLE OF THE SAME SIZE PINPOINTED ACTS OF VIOLENCE BY USING DOCUMENTS AND REPEATED INTERVIEWS WITH THE PATIENTS AND THEIR ACQUAINTANCES GENDER AGE AND RACE WERE ELIMINATED AS FACTORS UNLIKE SOME PREVIOUS STUDIES THAT NOTED ONLY CRIMINAL ACTS OF VIOLENCE THE UNIVERSITY OF PITTSBURGH RESEARCHERS USED A BROADER EVERYDAY DEFINITION OF VIOLENCE THE SPECIALISTS' EVALUATIONS ARE ROUTINELY USED IN THE CRIMINALJUSTICE SYSTEM TO HELP DETERMINE HOW MUCH BAIL TO SET HOW LONG A SENTENCE SHOULD BE AND WHETHER A CRIMINAL WILL BE PAROLED DESPITE THE NEW AND OLD EVIDENCE OF THE INACCURACY OF SPECIALISTS' PREDICTIONS PROSECUTORS AND DEFENSE LAWYERS SAY THEY HAVE NO BETTER ALTERNATIVE WHY DO WE USE THEM BECAUSE IT'S A TOOL WE'RE ALLOWED TO USE SAID MARVIN SONNY WHITE AN ASSISTANT STATE ATTORNEY GENERAL IN MISSISSIPPI WE'RE AWARE THAT THERE IS A DEBATE IN THE MEDICAL COMMUNITY THE US SUPREME COURT HAS UPHELD THE USE OF SUCH PREDICTIONS SAYING THAT AT LEAST PSYCHIATRISTS HAVE A BETTER CHANCE OF GAUGING VIOLENT TENDENCIES THAN OTHER PEOPLE DO CHARLES P EWING A LAW AND PSYCHOLOGY PROFESSOR AT STATE UNIVERSITY OF NEW YORK AT BUFFALO WHO HAS CRITICIZED USE OF THE PREDICTIONS DESCRIBED THE COURT'S REASONING AS WE RECOGNIZE HOW INACCURATE THEY ARE BUT AT THE SAME TIME THE SYSTEM IS BUILT ON THEM RICHARD G LUBIN A CRIMINALDEFENSE ATTORNEY IN WEST PALM BEACH FLA SAID THE PREDICTIONS ARE USEFUL IF THEY'RE PUT INTO CONTEXT WITH OTHER EVIDENCE MR LUBIN SAID HE CALLED ON A PSYCHIATRIST LAST MONTH FOR EXAMPLE TO TESTIFY THAT A MAN WHO SHOT SOMEONE AFTER EXPERIENCING A SERIES OF CALAMITIES ONE DAY WAS HIGHLY UNLIKELY TO EVER SHOOT ANYONE AGAIN WHATEVER THE EXPERT IS TESTIFYING ON THEIR OPINION IS ONLY AS GOOD AS THE FACTS THAT SUPPORT IT MR LUBIN SAID POLICE MAY SIFT THROUGH TRASH CANS FOR EVIDENCE ONCE THE REFUSE IS PLACED ON STREET CURBS TO BE HAULED AWAY CONNECTICUT'S HIGHEST COURT RULED THE RULING IS IN LINE WITH DECISIONS BY COURTS IN 11 OTHER STATES THAT HAVE SAID THAT UNDER THE STATES' CONSTITUTIONS POLICE DON'T NEED SEARCH WARRANTS TO LOOK THROUGH GARBAGE FOR EVIDENCE THE US SUPREME COURT HAS RULED THAT UNDER THE FEDERAL CONSTITUTION TRASH LEFT AT THE CURB ALSO IS ABANDONED PROPERTY WHICH CAN BE SEARCHED ONLY COURTS IN NEW JERSEY HAWAII AND WASHINGTON HAVE RULED THAT THEIR STATE CONSTITUTIONS PROHIBIT SUCH SEARCHES BY POLICE A SIMILAR CASE IS PENDING IN IDAHO THE 32 RULING FROM CONNECTICUT'S SUPREME COURT CAME AS SOMETHING OF A SURPRISE BECAUSE THE STATE'S COURTS HAVE TYPICALLY OFFERED BROADER PROTECTIONS TO ITS CITIZENS THAN THE FEDERAL CONSTITUTION IN THE CASE BEFORE THE STATE SUPREME COURT PAUL DEFUSCO OF HAMDEN WAS CONVICTED OF DRUG TRAFFICKING BASED ON EVIDENCE FOUND IN HIS HOME AFTER A SEARCH WARRANT WAS ISSUED BASED ON EVIDENCE POLICE FOUND IN HIS GARBAGE WRITING FOR THE MAJORITY CHIEF JUSTICE ELLEN A PETERS SAID THAT A NUMBER OF STATE LAWS INCLUDING CONNECTICUT'S TWOYEAROLD RECYCLING STATUTE SUPPORTED THE GOVERNMENT'S CONTENTION THAT RESIDENTS SHOULD KNOW THAT TRASH IS SUBJECT TO INSPECTION BY PUBLIC OFFICIALS JOHN R DONOVAN A PARTNER WITH DONOVAN & MORELLO IN CROMWELL WHICH REPRESENTED MR DEFUSCO SAID THE SUPREME COURT FAILED TO APPRECIATE THAT WHILE MOST RESIDENTS EXPECT THAT TRASH COLLECTORS OR UNOFFICIAL INDIVIDUALS RUMMAGE THROUGH THEIR GARBAGE THEY DON'T EXPECT POLICE TO DO THE SAME JUNDA WOO AND ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE A UNIVERSITY OF PITTSBURGH STUDY PUBLISHED IN THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION FOUND THAT MENTALHEALTH SPECIALISTS WERE WRONG 36 OF THE TIME WHEN THEY PREDICTED A PATIENT WOULDN'T COMMIT VIOLENCE IN THE NEXT SIX MONTHS THAT PERCENTAGE WAS MISSTATED AS 64 IN YESTERDAY'S LEGAL BEAT COLUMN 9302240059 930224 CREDIT MARKETS BOND RALLY ROARS AHEAD ON CLINTON PROPOSALS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SPECTACULAR BOND MARKET RALLY ACCELERATED YESTERDAY WITH LONGTERM TREASURY BOND YIELDS PLUNGING TO ANOTHER RECORD LOW AS INVESTORS RUSHED TO EMBRACE PRESIDENT CLINTON'S ECONOMIC PACKAGE THE BENCHMARK 30YEAR TREASURY BOND SOARED MORE THAN 1 3/8 POINTS YESTERDAY OR MORE THAN 1375 FOR A 1000 BOND AIDED BY SIGNS THAT CONSUMER CONFIDENCE MAY BE WEAKENING BOND YIELDS WHICH MOVE IN THE OPPOSITE DIRECTION OF PRICES SANK FURTHER INTO RECORDLOW TERRITORY FOR THE FIFTH CONSECUTIVE DAY WITH THE YIELD ON THE 30YEAR BOND FALLING TO 682 THAT WAS DOWN FROM 693 MONDAY AND 714 JUST A WEEK AGO UNTIL LAST WEEK THE 30YEAR TREASURY BOND YIELD HAD NEVER CLOSED BELOW 710 SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THESE BONDS IN 1977 WALL STREET BOND DEALERS WERE SCRAMBLING TO MEET THE WAVE OF DEMAND FROM EAGER FIXEDINCOME INVESTORS WE'RE GOING BANANAS SAID GIB CLARK SENIOR VICE PRESIDENT OF GOVERNMENT TRADING AT DAIWA SECURITIES AMERICA INC IT'S A FEEDING FRENZY LIKE MANY OTHER WALL STREET DEALERS HE SAID WE ARE SCRAMBLING AND REPLACING WHAT WE SELL AS TREASURY YIELDS DROPPED CORPORATIONS CITIES AND STATES RUSHED MORE THAN 6 BILLION OF NEW NOTES AND BONDS TO THE MARKET INCLUDING A 300 MILLION OFFERING OF 33YEAR FIRST AND REFUNDING MORTGAGE BONDS BY SCECORP'S SOUTHERN CALIFORNIA EDISON CO INVESTORS HAVE WARMLY GREETED MR CLINTON'S PROPOSALS FOR BIG TAX INCREASES AND REDUCTIONS IN GOVERNMENT SPENDING AIMED AT REDUCING THE FEDERAL BUDGET DEFICIT A SMALLER DEFICIT WOULD HELP REDUCE LONGTERM INTEREST RATES SINCE THE GOVERNMENT WOULD NEED TO SELL FEWER TREASURY BONDS TO RAISE MONEY MOREOVER MANY BOND INVESTORS BELIEVE MR CLINTON'S PROPOSED TAX INCREASES COULD SLOW ECONOMIC GROWTH AND THUS FURTHER REDUCE ALREADY LOW INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF BOND INVESTMENTS WHICH HAVE FIXED RATES OF RETURN OF COURSE I'VE BEEN BUYING SAID ROBERT ANDRES HEAD OF FIXEDINCOME INVESTING AT MONEY MANAGER MARTINDALE ANDRES & CO MR ANDRES SAID HE LOADED UP ON FIVEYEAR TREASURY NOTES YESTERDAY MR CLINTON'S PROPOSED TAX HIKES WILL PUT A CAP ON THE ECONOMY OR SLOW IT DOWN SAID MR ANDRES BOND INVESTORS WERE FURTHER ENCOURAGED YESTERDAY BY A REPORT FROM THE CONFERENCE BOARD THAT ITS CONSUMER CONFIDENCE INDEX HAD SLIPPED IN FEBRUARY TO 685 FROM A REVISED 767 IN JANUARY BEFORE MR CLINTON WAS ELECTED LAST FALL MANY ECONOMISTS ON WALL STREET WERE PREDICTING THAT LONGTERM TREASURY BOND YIELDS WOULD SURGE TO 8 OR MORE IF A DEMOCRAT WERE ELECTED THEY DIDN'T BELIEVE MR CLINTON WOULD DO MUCH TO REDUCE GOVERNMENT SPENDING SINCE ELECTION TIME HOWEVER THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND HAS PLUMMETED FROM 776 OR MORE THAN 090 PERCENTAGE POINT AND THE PRICE OF A 30YEAR BOND HAS RISEN MORE THAN 10 POINTS OR 100 FOR A BOND WITH 1000 FACE VALUE BUT WITH THE BOND RALLY HAVING COME SO FAR SO FAST SOME MONEY MANAGERS NOW ARE GETTING NERVOUS AND THINK THE RALLY COULD BE NEARLY OVER THE YIELD ON 30YEAR BONDS COULD CONTINUE TO RUN DOWN AT THIS POINT BUT THE RISK THAT INTEREST RATES WILL JUMP NOW IS MUCH MORE SUBSTANTIAL SAID WILLIAM GROSS MANAGING DIRECTOR OF PACIFIC INVESTMENT MANAGEMENT CO WHICH MANAGES ABOUT 40 BILLION IN FIXEDINCOME INVESTMENTS WE'RE DEFINITELY NOT IN A BUYING MODE MR GROSS SAID MR GROSS SAID HE HAS RACKED UP ABOUT 1 BILLION IN PAPER PROFITS SINCE LAST JULY THANKS TO A MASSIVE 10 BILLION HOLDING OF 30YEAR TREASURY BONDS WHILE HE HASN'T YET MOVED TO SELL ANY MR GROSS SAID WE ARE GETTING DOWN CLOSER TO THE 65 ZONE WHICH TO ME REPRESENTS A PRETTY FULL VALUE FOR 30YEAR TREASURY BONDS UNFORTUNATELY FOR WALL STREET MANY BOND DEALERS WERE SKEPTICAL OF MR CLINTON'S PROGRAM AND FAILED TO FILL THEIR SHELVES WITH TREASURY NOTES AND BONDS IN ADVANCE OF THE PRESIDENT'S PRESENTATION TO CONGRESS OF HIS ECONOMIC PACKAGE THESE DEALERS HAVE BEEN FORCED TO FILL CUSTOMER ORDERS BY PURCHASING NOTES AND BONDS IN THE OPEN MARKET AND MISSED OUT ON THE WEEK'S BIG PROFITS YOU'D HAVE TO CHARACTERIZE US AS A BUNCH OF REPUBLICANS SAID JOHN COSTAS HEAD OF GOVERNMENT BOND TRADING FOR FIRST BOSTON CORP TRADERS SAID MUCH OF YESTERDAY'S STRONG DEMAND FOR TREASURY BONDS CAME FROM INSURANCE COMPANIES AND MONEY MANAGERS WHO WERE UNLOADING MORTGAGEBACKED SECURITIES IN FAVOR OF TREASURY NOTES ESPECIALLY THOSE MATURING IN SEVEN TO 10 YEARS SINCE MORTGAGE BONDS ARE BACKED BY HOME LOANS WHICH ARE OFTEN PREPAID BY HOMEOWNERS WHEN INTEREST RATES DIP MORTGAGEBACKED SECURITIES CAN ACTUALLY LOSE VALUE WHEN THE REST OF THE BOND MARKET RALLIES STRONGLY DEMAND FOR TREASURY SECURITIES WAS STRONG ENOUGH YESTERDAY SO THAT THE MARKET WAS ABLE TO CONTINUE RALLYING EVEN AFTER A WEAK TREASURY AUCTION TRADERS SAID THE TREASURY SOLD 1526 BILLION OF TWOYEAR NOTES AT A YIELD OF 394 THE LOWEST SINCE THE START OF THE TWOYEAR AUCTIONS IN 1974 BUT WELL ABOVE THE 391 YIELD EXPECTED BY MOST IN THE MARKET THE BIDTOCOVER RATIO A MEASURE OF BIDS RECEIVED TO THOSE ACCEPTED WAS 214TO1 FAR BELOW THE AVERAGE OF 269TO1 OVER THE LAST 12 AUCTIONS BUT THE YIELD DROPPED DOWN TO 390 IN WHENISSUED TRADING LATE YESTERDAY A SIGN OF STRONG POSTAUCTION DEMAND AFTER THE TREASURY AUCTION SAID MR COSTAS OF FIRST BOSTON THE MARKET JUST POPPED BACK THERE IS SOMETHING OF A SNOWBALL EFFECT HERE SAID DAVID ADER AN ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES ACCORDING TO MR ADER WALL STREET IS BEGINNING TO BELIEVE THAT CLINTON'S PLAN OR EVEN VARIATIONS OF IT ARE GOING TO BE DARE I SAY CREDIBLE IN TERMS OF DEFICIT REDUCTION AS WELL AS CREDIBLE AS A DRAG ON THE ECONOMY IT'S VERY HARD TO CALL WHERE THE TOP SHOULD BE SAID PETER HEGEL HEAD OF FIXEDINCOME INVESTMENTS AT VAN KAMPEN MERRITT WE'VE HAD OUR LUNCH FED TO US OVER THE LAST TWO WEEKS SAID MR HEGEL IN COMMENTING ABOUT HOW MANY DEALERS AND MONEY MANAGERS MISSED OUT ON THE CURRENT RALLY WE'RE NOT CONFIDENT THAT THE RALLY WILL CONTINUE SAID MR HEGEL THERE ARE STILL 550ODD GUYS IN CONGRESS SITTING UP THE STREET WHO ARE GOING TO MAKE NOISE ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 1 AND MATURE FEB 28 1995 CORPORATIONS OF JUST ABOUT EVERY TYPE TOOK ADVANTAGE OF THE SHARP DROP IN INTEREST RATES TO OFFER MORE THAN 3 BILLION IN DEBT YESTERDAY SECONDARY TRADING OF INVESTMENTGRADE BONDS WAS QUIET AS BUYERS FOCUSED ON THE NEW ISSUES PRICES AS A RESULT DIDN'T KEEP UP WITH THE TREASURY RALLY AND GAINS RANGED FROM 1/2 POINT TO 7/8 POINT TRADING IN SPECULATIVEGRADE BONDS HOWEVER WAS BRISK AS INVESTORS SEARCHED FOR YIELD PRICES OF SEVERAL BONDS WERE UP AS MUCH AS A POINT MANY OF YESTERDAY'S OFFERINGS WERE PRICED AT TIGHT YIELD SPREADS OVER COMPARABLE TREASURYS BUT THE RALLYING TREASURY MARKET CAUSED SPREADS TO WIDEN QUICKLY MAKING AGGRESSIVE PRICING SUDDENLY LOOK GENEROUS WHEN THE MARKET STARTS TRADING UP SOMETHING THAT WAS UNDERWATER SUDDENLY BECOMES NOT UNDERWATER SAID DANA LEVENSON HEAD OF THE DEBT SYNDICATE DESK AT KIDDER PEABODY & CO IT'S SIMPLY A MATTER OF WHAT THE STRONG TREASURY RALLY CAN DO A 500 MILLION ISSUE OF SEVENYEAR NOTES OFFERED BY GENERAL MOTORS CORP'S GENERAL MOTORS ACCEPTANCE CORP FOR INSTANCE WAS PRICED THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO TO YIELD 704 AT THE PRICING THE YIELD WAS 145 PERCENTAGE POINT ABOVE THE SEVENYEAR TREASURY NOTE BUT TREASURYS RALLIED SOON AFTER PRICING PUSHING THE YIELD SPREAD TO MORE THAN 150 PERCENTAGE POINT INVESTORS TOOK THAT OPPORTUNITY TO GO IN AND GRAB EXTRA SPREAD SAID JENNIFER BOURAS A CORPORATE BOND TRADER WITH BACK BAY ADVISORS INC A BOSTON MONEY MANAGEMENT FIRM A CONTINUED DECLINE IN INTEREST RATES COULD MAKE THE YIELDS ON YESTERDAY'S CORPORATE OFFERINGS LOOK GOOD LATER ON MOST INSTITUTIONAL INVESTORS APPEAR TO BELIEVE THE RALLY WILL HOLD SAID JACK MALVEY CORPORATE STRATEGIST AT LEHMAN BROTHERS WITH MORTGAGEBACKED SECURITIES UNDER PRESSURE FROM HEIGHTENED FEARS OF EARLY PREPAYMENTS CORPORATE BONDS ARE AS GOOD AN INVESTMENT AS ANY RIGHT NOW THE CALENDAR OF EXPECTED CORPORATE OFFERINGS IS SURPRISINGLY LIGHT SAID MR MALVEY BUT THAT COULD CHANGE ONCE CORPORATIONS REALIZE HOW CHEAPLY THEY CAN ISSUE DEBT IT WOULD NOT BE SURPRISING TO SEE AN ESCALATION OF FINANCING THIS WEEK IN REACTION TO THIS BARGAIN SALE IN TERMS OF FINANCING COSTS HE SAID THE BUYING SPREE CONTINUED IN BOTH THE PRIMARY AND SECONDARY SECTORS OF THE MUNICIPAL BOND MARKET YESTERDAY DUE TO JITTERS ABOUT THE HIGHER PERSONAL INCOME TAX RATES PROPOSED BY MR CLINTON IN NEWISSUE DEALINGS INVESTORS QUICKLY BOUGHT MORE THAN 3 BILLION OF NEW NOTE AND BOND OFFERINGS DEMAND WAS SO STRONG THAT A NUMBER OF UNDERWRITING GROUPS WERE ABLE TO HOLD ABBREVIATED ORDER PERIODS FOR THEIR SECURITIES AND THEN QUICKLY LOWER YIELDS BY 005 PERCENTAGE POINT OR MORE IN SECONDARY TRADING PRICES LEAPED ANYWHERE FROM 5/8 TO 2 1/4 POINTS MUNIS AREN'T SHOWING ANY SIGN OF RUNNING OUT OF STEAM EVEN THOUGH THEY HAVE ADVANCED SHARPLY FOR SIX CONSECUTIVE TRADING DAYS AS FOR THE NEW ISSUES MARKET PARTICIPANTS SNAPPED UP OFFERINGS THAT INCLUDED MICHIGAN'S 900 MILLION ISSUE OF FULL FAITH AND CREDIT GENERAL OBLIGATION NOTES THE NOTES WERE BROUGHT TO THE MARKET BY A BEAR STEARNS & CO GROUP BOTH THE COUPON AND YIELD FOR MICHIGAN'S NOTES WERE TRIMMED AT A REPRICING IN RESPONSE TO STRONG DEMAND THE NOTES ARE NOW 285 SECURITIES AT 10039 WHICH ARE TO YIELD 218 ON SEPT 30 THEY WERE INITIALLY 290 SECURITIES PRICED AT APPROXIMATELY 10038 AND WERE TO YIELD 225 AT THEIR MATURITY MORTGAGE SECURITIES CONTINUED TO LOSE FAVOR WITH INVESTORS WHO VIEW MANY ISSUES AS OVERPRICED AT A TIME WHEN PREPAYMENT RISKS ARE LOOMING PRICES ENDED MIXED YESTERDAY WITH SOME ISSUES DOWN ABOUT 1/8 WHILE OTHERS GAINED AS MUCH AS 7/8 BECAUSE MORTGAGE SECURITIES ARE PREPAID AT PAR ANY PREMIUM INVESTORS PAY ABOVE THAT PRICE IS LOST WHEN THE SECURITIES ARE RETIRED EARLY IN SECONDARY TRADING OF 75 ISSUES FOR MARCH DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ROSE 23/32 TO 103 25/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 5/8 POINT HIGHER AT 103 17/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES GAINED 5/8 TO 103 11/32 THE PRIMARY MARKET WAS FAIRLY DORMANT WITH ONLY A 500 MILLION DEAL ANNOUNCEDFREDDIE MAC 1486 BACKED BY THE AGENCY'S GOLD 8 MORTGAGE SECURITIES ABBY SCHULTZ CONTRIBUTED TO THIS ARTICLE 9302240058 930224 INTERNATIONAL BRIEF SVENSKA HANDELSBANKEN BANK REPORTS PRETAX LOSS FOR YEAR OF 978 MILLION SVENSKA HANDELSBANKEN SWEDEN'S NO 2 BANK REPORTED A 1992 PRETAX LOSS OF 740 MILLION SWEDISH KRONOR 978 MILLION SWINGING FROM A YEAREARLIER PRETAX PROFIT OF 211 BILLION KRONOR THE LOSS SLIGHTLY WIDER THAN MOST ANALYSTS' ESTIMATES REFLECTED A DOUBLING OF LOANLOSS PROVISIONS LAST YEAR TO 8 BILLION KRONOR FROM 319 BILLION KRONOR THE BADDEBT PROVISIONS REPRESENTED A HEFTY 28 OF TOTAL LOANS OUTSTANDING HOWEVER HANDELSBANKEN HELD OUT PROSPECTS OF A STRONG RECOVERY THIS YEAR AMID SIGNS THAT SWEDEN'S DEEP BANKING CRISIS MAY BE BOTTOMING OUT AT YEAR END HANDELSBANKEN'S CAPITAL RATIO REMAINED A RELATIVELY ROBUST 101 ACCORDING TO BANK FOR INTERNATIONAL SETTLEMENTS STANDARDS WITH NONPERFORMING LOANS STILL TOTALING 155 BILLION KRONOR OR 55 OF TOTAL LOANS OUTSTANDING THE BANK'S DIRECTORS RECOMMENDED OMITTING A 1992 DIVIDEND HANDELSBANKEN'S PILE OF NONPERFORMING CREDITS ACTUALLY DECREASED SIGNIFICANTLY DURING LAST YEAR'S FINAL FOUR MONTHS ONE OF SEVERAL UPBEAT SIGNS THAT CAUSED CHIEF EXECUTIVE ARNE MARTENSSON TO SUGGEST THE WORST MAY BE OVER FOR SWEDEN'S BELEAGUERED BANKS 9302240057 930224 WHAT'S NEWS BUSINESS AND FINANCE BOND YIELDS TUMBLED TO ANOTHER RECORD LOW AS INVESTORS EMBRACED CLINTON'S ECONOMIC PACKAGE AND A REPORT SHOWED A SHARP DROP IN CONSUMER CONFIDENCE THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND SKIDDED TO 682 STOCK PRICES FELL WITH THE DOW JONES INDUSTRIALS DOWN 1972 TO 332327 THE DOLLAR WAS MIXED THE CONFERENCE BOARD'S REPORT SHOWED THAT CONSUMER CONFIDENCE IN FEBRUARY FELL TO 685 FROM 767 BUT THE REPORT WAS BASED ON A SURVEY TAKEN JUST BEFORE THE PRESIDENT OUTLINED HIS ECONOMIC PROGRAM TO CONGRESS NISSAN SAID IT WILL SHUT ONE OF ITS PLANTS APPARENTLY THE FIRST CLOSING EVER OF A JAPANESE CAR FACILITY FURTHER REFLECTING THE NATION'S SLUMP MATSUSHITA ELECTRIC SAID PRETAX PROFIT FELL 60 IN THE LATEST QUARTER WHILE NTT MAY CUT 13 OF ITS WORK FORCE DEMOCRATS SIGNALED THEY WOULD SPEED UP ACTION ON CLINTON'S BUDGET IN CONGRESS AS PART OF A STRATEGY TO EMPHASIZE SPENDING CUTS IN THE PLAN AND SHORE UP POLITICAL SUPPORT FOR A 16 BILLIONPLUS STIMULUS BILL THIS SPRING AT&T SIGNED AN ACCORD WITH CHINA WHICH IT SAID COULD MEAN BILLIONS OF DOLLARS IN REVENUE OVER THE NEXT DECADE AT&T HAD BEEN BANNED FROM THE CHINESE PHONE MARKET IN 1989 IBM'S SEARCH FOR A NEW CHIEF EXECUTIVE IS MOVING TOWARD A SHORT LIST OF FINALISTS AND COULD BE OVER WITHIN A MONTH COMPANY INSIDERS SAY IBM'S BOARD REPORTEDLY BEGAN DISCUSSING A HALFDOZEN FINALISTS YESTERDAY COX CABLE IS HOLDING TALKS WITH SOUTHWESTERN BELL TO INVEST MORE THAN 300 MILLION TO JOIN THE REGIONAL PHONE COMPANY IN A VENTURE THAT WOULD BUY AND BUILD CABLE SYSTEMS IN BRITAIN CLINTON PLANS TO ANNOUNCE SOON A SERIES OF BANK REGULATORY INITIATIVES TO EASE THE CREDIT CRUNCH PARTICULARLY FOR SMALL BUSINESSES DETAILS WEREN'T PROVIDED BUT OFFICIALS SAID THE CHANGES WILL FOCUS ON REDUCING PAPER WORK MORGAN STANLEY GROUP POSTED SURPRISINGLY STRONG FOURTHQUARTER EARNINGS THE INVESTMENT BANK RAISED ITS DIVIDEND AND AUTHORIZED THE PURCHASE OF UP TO 300 MILLION OF ITS STOCK THE SUPREME COURT SAID STATES MAY IMPOSE SALES TAXES ON THE LEASING OF CARGO CONTAINERS USED IN INTERNATIONAL TRADE THE 81 RULING WAS A DEFEAT FOR USBASED CONTAINER LESSORS COCACOLA IS TALKING WITH COCACOLA ENTERPRISES ITS LARGEST DOMESTIC BOTTLER ABOUT DISTRIBUTING COKE IN THE LUCRATIVE OVERSEAS MARKET IT WOULD BE A BOLD MOVE FOR COCACOLA ENTERPRISES WHICH HAS BEEN UNABLE TO GENERATE CONSISTENT PROFITS IN THE US GITANO SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF ABOUT 140 MILLION AND HIRED A FORMER VF CORP PRESIDENT TO RUN THE CASUALAPPAREL FIRM MEI DIVERSIFIED FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION AFTER FAILING TO GET AN EXPECTED CASH INFUSION FROM A FUND LED BY INVESTOR IRWIN JACOBS UNISYS SAID IT DOESN'T EXPECT ANY REVENUE GROWTH THIS YEAR BUT EXPRESSED CONFIDENCE THAT ITS EARNINGS WILL RISE IN 1993 AND THAT REVENUE FINALLY WILL TAKE OFF IN 1994 NORDSTROM'S STOCK PLUNGED 15 AFTER THE RETAILER CAUTIONED ANALYSTS THAT FISCAL 1994 EARNINGS COULD FALL SHORT OF WALL STREET'S 2ASHARE PROJECTION BONDS LEHMAN BROTHERS TREASURY INDEX 503692 UP 6421 COMMODITIES OIL 2048 A BARREL UP 24 CENTS DOW JONES FUTURES INDEX 12605 OFF 080 SPOT INDEX 12549 UP 061 9302240056 930224 BUSINESS BRIEF ALLEGHANY CORP FIRM'S PROFIT DECLINED 22 REVENUE ROSE IN 4TH QUARTER ALLEGHANY CORP HAD A 22 DECLINE IN INDICATED FOURTHQUARTER PROFIT COMPARED WITH A YEAR AGO WHEN SINCESOLD INSURANCE OPERATIONS ACCOUNTED FOR ITS PROFIT THE FINANCIAL SERVICES COMPANY IN NEW YORK HAD NET OF 224 MILLION OR 344 A SHARE COMPARED WITH 286 MILLION OR 448 A SHARE IN THE YEAREARLIER QUARTER REVENUE ROSE 16 TO 474 MILLION FROM 4097 MILLION ALLEGHENY HAD PROFIT OF 133 MILLION FROM ITS CONTINUING OPERATIONS COMPARED WITH A LOSS OF 79 MILLION IN THE YEARAGO PERIOD THE LATEST QUARTER INCLUDED A 91 MILLION BENEFIT FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE RELATED TO INCOME TAXES THE YEARAGO PERIOD INCLUDED 365 MILLION IN PROFIT FROM DISCONTINUED OPERATIONS INCLUDING A 31 MILLION GAIN ON THE SALE OF ITS SHELBY INSURANCE CO PROPERTY/CASUALTY UNIT ALLEGHANY REPORTED FULLYEAR RESULTS FOR 1992 BUT DIDN'T PROVIDE FIGURES FOR ITS FOURTH PERIOD INDICATED QUARTERLY RESULTS ARE BASED ON A COMPARISON OF FULLYEAR AND PREVIOUSLY REPORTED NINEMONTH RESULTS 9302240055 930224 TECHNOLOGY BRIEF UNISYS CORP COMPANY REPEATS FORECAST FOR FLAT REVENUE IN 1993 UNISYS CORP REITERATED THAT IT DOESN'T EXPECT ANY REVENUE GROWTH THIS YEAR BUT EXPRESSED STRONG CONFIDENCE THAT ITS PROFIT WILL GROW IN 1993 AND THAT REVENUE FINALLY WILL TAKE OFF IN 1994 IN A PRESENTATION TO ANALYSTS CHAIRMAN JAMES UNRUH FOCUSED HEAVILY ON UNISYS'S FUTURE GROWTH PROSPECTS IN AN APPARENT EFFORT TO CHANGE ITS IMAGE AS A COMPANY THAT MERELY HAS SLASHED COSTS TO PULL BACK FROM THE BRINK OF OBLIVION STRESSING THIS POINT IN THE COMPANY'S SLIDE SHOW ONE OF MR UNRUH'S SLIDES SAID SIMPLY REVENUE WILL GROW HE SAID UNISYS'S COSTCUTTING TURNAROUND NOW IS HISTORY AND THE NEXT PHASE HAS BEGUN FOR THE FULL 1993 THE BLUE BELL PA COMPUTER COMPANY SAID IT EXPECTS PERSHARE PROFIT TO RISE SIGNIFICANTLY FOR 1992 UNISYS REPORTED PROFIT OF 361 MILLION OR 140 A SHARE INCLUDING AN EXTRAORDINARY GAIN OF 65 MILLION OR 36 CENTS A SHARE FOR TAXLOSS CARRYFORWARDS IN THE LONGER TERM UNISYS SAID IT HAS INCREASED ITS RETURNONINVESTMENT GOAL TO AT LEAST 16 UP FROM A LONGTERM GOAL OF 13 A YEAR AGO FOR 1992 UNISYS SAID IT HAD A 12 RETURN ON INVESTMENT 9302240054 930224 BUSINESS BRIEF AUTODESK INC FISCAL FOURTHQUARTER PROFIT IS AT HIGH END OF ESTIMATES AUTODESK INC POSTED FISCAL FOURTHQUARTER PROFIT THAT WAS ON THE HIGH END OF ANALYST ESTIMATES EXCLUDING A ONETIME CHARGE ON A 48 JUMP IN REVENUE FOR THE QUARTER ENDED JAN 31 THE SAUSALITO CALIF SOFTWARE MAKER POSTED AN 18 RISE IN NET INCOME TO 112 MILLION OR 44 CENTS A SHARE COMPARED WITH A YEAREARLIER NET OF 95 MILLION OR 38 CENTS A SHARE REVENUE CLIMBED TO 986 MILLION FROM 665 MILLION THE EARNINGS INCLUDED A CHARGE OF 5 MILLION OR 12 CENTS A SHARE TO SETTLE A CLASSACTION LAWSUIT FILED AGAINST THE COMPANY IN 1992 THE COMPANY SAID THE EARNINGS WERE BOOSTED BY SALES THAT JUMPED 60 IN THE US AND 40 IN EUROPE AUTODESK SAID REVENUE GROWTH ALSO WAS HELPED BY 25 NEW SOFTWARE PRODUCTS THAT BEGAN SELLING DURING THE PAST YEAR ACCORDING TO AUTODESK DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS SAID THAT EXCLUDING THE ONETIME CHARGE EARNINGS WERE IN THE HIGH END OF PROJECTIONS 9302240053 930224 SOME COMPANIES USE SUBTLE METHODS TO CURB THE COST OF RETIREE BENEFITS BY LEE BERTON AND ROBERT J BRENNAN STAFF REPORTERS OF THE WALL STREET JOURNAL WHILE SOME COMPANIES ARE TAKING STRONG STEPS TO CURB THE COST OF RETIREE HEALTH BENEFITS OTHERS HAVE FOUND SUBTLER METHODS SOME ARE ADOPTING NEW FUNDING METHODS OR EXPLOITING LITTLEKNOWN TAX LOOPHOLES THESE COMPLEX STRATEGIES HAVE RECEIVED SCANT PUBLIC ATTENTION BECAUSE THEIR DETAILS ARE BURIED IN FOOTNOTES OF ANNUAL REPORTS THE NEW FUNDING METHODS TEND TO LEAVE RETIRED EMPLOYEES WITH MORE RISK FROM FUTURE HEALTHSPENDING INCREASES THERE'S NO QUESTION THAT SOME RISKS FOR INCREASES IN MEDICAL COSTS HAVE BEEN MOVED OVER TO EMPLOYEES TO BE FACED WHEN THEY RETIRE SAYS MICHAEL J GULOTTA PRESIDENT OF ACTUARIAL SCIENCES ASSOCIATES A PISCATAWAY NJ BENEFITS CONSULTING FIRM THAT IS A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO PROCTER & GAMBLE CO AND GILLETTE CO RECENTLY STARTED EMPLOYEE STOCK OWNERSHIP PLANS THAT WILL GIVE WORKERS CONVERTIBLE PREFERRED SHARES TO PAY FOR THEIR HEALTH BENEFITS AFTER THEY RETIRE IF THE STOCK'S PRICE STAGNATES OR FALLS CONSULTANTS SAY RETIREES' KITTY FOR MEDICAL COSTS COULD RUN SHORT UNDER P&G'S PLAN A TRUST IT SET UP BORROWED 1 BILLION IN 1989 WITH THE LOAN GUARANTEED BY P&G THE TRUST WILL START GIVING EMPLOYEES SHARES IN 1995 TO PARTIALLY FUND THEIR POSTRETIREMENT MEDICAL BENEFITS P&G CAN DEDUCT CONTRIBUTIONS TO PAY OFF THE LOAN PRINCIPAL AND THE TRUST DOESN'T PAY TAXES ON ITS INVESTMENT INCOME ALSO P&G EMPLOYEES DON'T PAY INCOME TAXES ON STOCK THEY RECEIVE THROUGH THE PLAN THE INTERNAL REVENUE SERVICE APPROVED THE P&G PLAN IN 1990 BUT THE IRS LATER SAID IT WON'T APPROVE OTHER PLANS LIKE IT BECAUSE THE GOVERNMENT WOULD LOSE TOO MUCH TAX REVENUE FOR THIS REASON GILLETTE'S SIMILAR MEDICALBENEFITS FUNDING PROGRAM REQUIRES EMPLOYEES TO PAY INCOME TAX ONCE THEY GET STOCK FROM THE PLAN GILLETTE EMPLOYEES HIRED SINCE JULY 1 1990 WILL BE MOST DEPENDENT ON THE GROWTH OF THE ESOP STOCK TO COVER THEIR MEDICAL COSTS IN RETIREMENT SAYS JOHN O'CONNELL DIRECTOR OF EMPLOYEEBENEFIT FINANCE DEDUCTIONS WILL BE MADE FROM RETIREES' PENSION CHECKS TO COVER 25 OF HEALTHINSURANCE PREMIUMS WITH THE REMAINING 75 PAID BY THE ESOP BENEFIT CONSULTANTS SAY COMPANIES CAN CUT THEIR RETIREE MEDICAL COSTS 25 OR MORE BY USING ESOPS TO FUND A MAJOR PORTION OF THEM CONSULTANTS ALSO NOTE THAT SUCH FUNDING CHANGES WILL HELP EASE THE IMPACT OF A RECENT ACCOUNTINGRULE CHANGE THAT REQUIRES COMPANIES TO BEGIN SETTING ASIDE RESERVES FOR RETIREE MEDICAL BENEFITS NO LATER THAN THIS YEAR ESOPS AND OTHER ALTERNATIVE FUNDING METHODS ARE AMONG THE BEST WAYS A COMPANY CAN CONTROL RETIREE MEDICAL COSTS IN THE FUTURE AND HELP AVOID THE BIG HIT EACH YEAR OF THE NEW ACCOUNTING RULE SAYS ROBERT POLLOCK A PRINCIPAL IN LOS ANGELES FOR WILLIAM M MERCER INC A NEW YORK CONSULTING FIRM OTHER COMPANIES ARE CONTROLLING THEIR COSTS BY USING FUNDING METHODS THAT AVOID TAXES IN 1991 AT&T SET UP TRUSTS FOR NONUNION AND UNIONIZED EMPLOYEES THE NONUNIONIZED EMPLOYEES' TRUST AVOIDS TAXES ON INVESTMENT GAINS BY BUYING LIFE INSURANCE AND ACTING AS THE BENEFICIARY WHEN AN EMPLOYEE DIES THE TRUST USES THE INSURANCE PROCEEDS TO PAY FOR SURVIVING EMPLOYEES' MEDICAL BENEFITS AFTER THEY RETIRE THIS DEVICE ISN'T NEEDED FOR THE UNIONIZED EMPLOYEES' TRUST AS FEDERAL LAW LETS SUCH ASSETS APPRECIATE UNTAXED THE COMPANY GETS A TAX DEDUCTION FOR FUNDING THESE TRUSTS AT&T'S INITIAL CONTRIBUTION OF 773 MILLION TO BOTH TRUSTS HAS RISEN TO 813 MILLION UNTAXED SOME BENEFITS CONSULTANTS WORRY THAT THESE VEHICLES COULD FALL VICTIM TO A DRIVE TO CUT THE DEFICIT IF THE IRS DECIDES TO END THESE TAX ADVANTAGES MEDICALBENEFIT GROWTH WOULD BE REDUCED AND THE EMPLOYEE WOULD SUFFER UNLESS THE COMPANY MADE UP THE DIFFERENCE SAYS ONE CONSULTANT AT&T CREATED THE TWO TRUSTS SHORTLY AFTER IT BARGAINED A CAP ON ITS CONTRIBUTION TO UNIONIZED EMPLOYEES' RETIREE MEDICALBENEFIT PREMIUMS AT&T IMPOSED THE SAME CAP FOR NONUNION EMPLOYEES TO CURB THEIR RETIREE MEDICAL COSTS SOME COMPANIES ARE CONTRIBUTING ONLY IF THEIR EMPLOYEES CHIP IN FIRSTLONG BEFORE THEY RETIRE THAT HAS BEEN THE CASE AT AMERICAN AIRLINES A SUBSIDIARY OF AMR CORP SINCE JANUARY 1990 ALL USBASED EMPLOYEES EXCEPT PILOTS AND FLIGHT ATTENDANTS CAN MAKE MONTHLY CONTRIBUTIONS TO A MEDICALCARE ACCOUNT FOR AT LEAST A DECADE BEFORE THEY RETIRE SUCH PAYMENTS NOW RANGE FROM 10 TO 9150 A MONTH THEY WILL DEPEND ON WORKERS' AGE WHEN THEY WERE HIRED AND HOW MUCH MEDICAL COSTS RISE EACH YEAR WORKERS MAKE THE PAYMENTS UNTIL RETIREMENT AMERICAN CONTRIBUTES AN EQUAL AMOUNT TO THE RETIREE MEDICALCARE ACCOUNT EMPLOYEES WHO DECIDE AGAINST MAKING CONTRIBUTIONS AREN'T ELIGIBLE FOR RETIREE MEDICAL BENEFITS FROM THE COMPANY THE CURRENT PLAN RELIEVES PARTICIPANTS OF WORRYING ABOUT MEDICALCOST INCREASES AFTER THEIR RETIREMENT ONCE EMPLOYEES RETIRE AS LONG AS THEY'VE MADE THE CONTRIBUTIONS THEY HAVE FULL COVERAGE SAYS MARK JOHNSON THE AIRLINE'S BENEFITS COMPLIANCE COUNSEL 9302240052 930224 CORRECTIONS & AMPLIFICATIONS VALUE HEALTH INC PROVIDES SPECIALTY HEALTH PROGRAMS PRIMARILY INVOLVING PRESCRIPTION DRUG AND MENTAL HEALTH SERVICES TO LARGE EMPLOYERS IN YESTERDAY'S ABREAST OF THE MARKET COLUMN IT WAS INCORRECTLY STATED THAT THE COMPANY IS A HEALTH MAINTENANCE ORGANIZATION SUSAN SARGISSON IS COPUBLISHER OF MARKET VIEW A MARKETING REPORT THE PUBLICATION WAS INCORRECTLY IDENTIFIED AS THE MARKETING INTELLIGENCE REPORT IN THURSDAY'S MARKETSCAN COLUMN ABOUT THE AFRICANAMERICAN COSMETICS MARKET JIM MEADLOCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INTERGRAPH CORP ASSUMED THE DUTIES OF ELIOTT D JAMES WHO RESIGNED AS PRESIDENT IN MONDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT MR MEADLOCK ASSUMED THE ADDITIONAL TITLE OF PRESIDENT THAT POSITION REMAINS UNFILLED 9302240051 930224 WORLD MARKETS TOKYO EQUITIES STAY UNDER PRESSURE FROM YEN STOCKS DROP SHARPLY IN LONDON AND FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP EQUITIES IN TOKYO ENDED MIXED IN THIN ACTIVITY TUESDAY AS THE YEN'S CONTINUED STRENGTH AGAINST THE DOLLAR HURT MARKET SENTIMENT BUT THE BENCHMARK INDEX NUDGED INTO POSITIVE TERRITORY LONDON PRICES FELL BROADLY ON CONTINUING ANXIETY ABOUT STOCKRIGHTS ISSUES AND IN FRANKFURT FEARS ABOUT THE DEEPENING GERMAN RECESSION FINALLY TOOK HOLD AND PUSHED SHARES DOWN HARD IN TOKYO THE NIKKEI 225STOCK INDEX WHICH PLUMMETED 18942 POINTS MONDAY ROSE 4254 TO 1686315 AFTER TRADING IN A TIGHT RANGE OF SLIGHTLY MORE THAN 131 POINTS ON WEDNESDAY IN TOKYO THE NIKKEI FELL 2819 POINTS TO CLOSE THE MORNING SESSION AT 1683496 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES COMPARED WITH 2159 MILLION SHARES MONDAY RETREATING ISSUES TOPPED GAINERS 567344 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 1015 POINTS MONDAY DECLINED 260 TO 128131 INVESTORS TURNED TO SHARES SUCH AS UTILITIES THAT STAND TO BENEFIT FROM A FIRM YEN A STRONG JAPANESE CURRENCY CUTS THE COST OF IMPORTED RESOURCES ON WHICH THE UTILITIES DEPEND SEVERAL EXPORTORIENTED ISSUES RECOVERED AFTER A SHARP DROP MONDAY ON THE YEN'S STRENGTH WHICH REDUCES THEIR RETURNS FROM OVERSEAS SALES THE NIKKEI MOVED LOWER MOST OF THE DAY BEFORE RECOVERING IN THE LATE AFTERNOON AS APPARENT STABILITY IN THE CURRENCY MARKETS HELPED CALM INVESTORS WHO WERE WARY OF THE VOLATILE YENDOLLAR SITUATION A WAITANDSEE ATTITUDE WAS REINFORCED BY JAPANESE OFFICIALS' REMARKS VIEWED AS CONTRADICTORY ABOUT ANY ACTIONS AFFECTING CURRENCY MOVEMENTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SANK 203 POINTS TO 28180 WITH 66 STOCKS IN THE AVERAGE DECLINING AND 30 ADVANCING THE FT 30STOCK INDEX GAVE UP 181 POINTS TO 21807 VOLUME WAS 5978 MILLION SHARES COMPARED WITH 5532 MILLION SHARES A DAY EARLIER THE MAIN FOCUS OF PRESSURE ON PRICES WAS RIGHTS ISSUES IN WHICH COMPANIES GO TO THE MARKET TO RAISE CASH SIPHONING FUNDS THAT COULD GO TO OTHER ISSUES THE MARKET ALSO HAD A DIFFICULT TIME DIGESTING THE REMNANTS OF A MONDAY SELL PROGRAM IN WHICH VARIOUS CYCLICAL ISSUES WERE UNLOADED IN FAVOR OF HIGHYIELDING DEFENSIVE STOCKS IN THE UTILITY SECTOR FURTHER DOWNWARD PRESSURE TUESDAY CAME FROM WALL STREET'S DECLINE LATE IN THE LONDON SESSION UTILITIES TURNED IN A STRONG PERFORMANCE BUT BANK STOCKS WERE HIT BY PROFITTAKING IN FRANKFURT THE DAX 30STOCK INDEX AFTER POSTING SMALL GAINS FOR TWO WEEKS DROPPED 1916 POINTS OR 11 TO 166158 THE INDEX FELL THROUGHOUT MOST OF THE SESSION WITH 25 OF THE STOCKS RETREATING AND ONLY THREE ADVANCING AS WEAK GERMAN ECONOMIC FUNDAMENTALS IMPRESSED THEMSELVES ON MARKET SENTIMENT INVESTORS IN FRANKFURT TOOK A CLOSER LOOK AT LAST WEEK'S GERMAN MONEYSUPPLY FIGURE WHICH CONTRACTED IN JANUARY AND INITIALLY OFFERED RELIEF ABOUT INFLATION PROSPECTS BUT PARTICIPANTS BECAME WORRIED THAT A SHRINKING MONEY SUPPLY OFTEN SIGNALS THAT AN ECONOMY IS SO STAGNANT THAT A DEEP RECESSION IS LOOMING THOSE WORRIES WERE DRIVEN HOME BY A SERIES OF POOR CORPORATE EARNINGS RESULTS IN THE PAST WEEK FRANKFURT STOCKS ALSO WERE PUSHED LOWER BY A SELLOFF IN THE GERMAN BOND MARKET TURNOVER WAS QUIET THOUGH AS MANY INVESTORS LEFT EARLY FOR THE COUNTRY'S CARNIVAL FESTIVITIES PARIS STOCKS ENDED A FOURSESSION BULL RUN AND DROPPED ON PROFITTAKING MADRID SHARE PRICES PLUNGED BROADLY AS PRESSURE MOUNTED AGAINST THE SPANISH PESETA AFTER THE CENTRAL BANK LEFT ITS BENCHMARK INTEREST RATE UNCHANGED STOCKHOLM EQUITIES FELL ON BANKING RESULTS THAT WERE WORSE THAN EXPECTED ZURICH SHARES FELL SHARPLY PRESSURED BY CONTINUED SELLING IN THE CHEMICAL AND PHARMACEUTICAL SECTOR SYDNEY STOCKS FIRMED AS SENTIMENT CONTINUED TO BE BUOYED BY A RISING AUSTRALIAN DOLLAR AND A STRONGER BOND MARKET AND GAINS MONDAY ON WALL STREET SINGAPORE SHARES CLIMBED TO A RECORD ON POSITIVE EXPECTATIONS ABOUT THE COMING GOVERNMENT BUDGET GREATER ECONOMIC GROWTH THIS YEAR AND SOME FAVORABLE CORPORATE DEVELOPMENTS PROFITTAKING LEFT PRICES DOWN SHARPLY IN HONG KONG AND IN TAIPEI MANILA STOCKS' RISE WAS FUELED BY HEAVY FOREIGN BUYING AMONG CORPORATE DEVELOPMENTS IN TOKYO NIPPON TELEGRAPH & TELEPHONE GAVE UP 6000 YEN TO 613000 YEN 527303 ON A REPORT THAT THE TELECOMMUNICATIONS GIANT WILL UNVEIL FRIDAY A PLAN TO ELIMINATE ABOUT 30000 OF ITS 200000 JOBS IN THE NEXT THREE YEARS TO BOOST EARNINGS NTT ALSO WILL CLOSE A LARGE NUMBER OF ITS 1300 SALES OUTLETS NATIONWIDE AND STRENGTHEN EARLYRETIREMENT EFFORTS IN LONDON NATIONAL WESTMINSTER BANK SLUMPED 16 PENCE OR 35 TO 443 PENCE 647 PRETAX PROFIT FOR 1992 MORE THAN TRIPLED TO 405 MILLION 5911 MILLION FROM THE YEAREARLIER 110 MILLION HELPED BY A TURNAROUND AT ITS US UNIT AND DEVELOPMENT OF ITS CAPITAL MARKETS OPERATIONS THE EARNINGS JUMP AND THE UNCHANGED DIVIDEND OF 175 PENCE A SHARE WERE IN LINE WITH MARKET EXPECTATIONS BUT THE STOCK FELL IN REACTION TO AN INCREASE IN NATWEST'S BAD DEBT CHARGES SMITHKLINE BEECHAM ROSE 3 TO 424 THE DRUG COMPANY'S 1992 PRETAX PROFIT ROSE 11 TO 112 BILLION THE DIVIDEND WAS BOOSTED 12 TO 86 PENCE A SHARE UNILEVER CLIMBED 14 PENCE TO 1160 1693 THE ANGLODUTCH CONSUMER PRODUCTS COMPANY POSTED BETTERTHANEXPECTED 1992 NET INCOME THAT ROSE 5 TO 4 BILLION GUILDERS 219 BILLION GRAND METROPOLITAN DROPPED 6 PENCE OR 13 TO 445 PENCE THE FOOD AND BEVERAGE COMPANY PREDICTED THE RISE IN THE DOLLAR'S VALUE AGAINST THE POUND WILL HAVE A SIGNIFICANTLY FAVORABLE EFFECT ON PROFIT FOR THE YEAR ENDING IN SEPTEMBER SEDGWICK GROUP SLIPPED 2 TO 168 IN A BETTERTHANEXPECTED REPORT THE INSURANCE BROKER'S 1992 PRETAX PROFIT FELL 29 TO 582 MILLION BECAUSE OF SHARP DECLINE IN INTEREST INCOME IN THE US AS EXPECTED THE DIVIDEND WAS HALVED TO 6 PENCE A SHARE IN FRANKFURT MANNESMANN SANK 770 MARKS OR 3 TO 247 MARKS 15218 THE INDUSTRIAL GROUP THOUGH IT DIDN'T SPECIFY PROFIT OR DIVIDEND NUMBERS SAID ITS 1992 EARNINGS FELL HURT BY RECESSION AND HIGH DEVELOPMENT COSTS FOR ITS CELLULARTELEPHONE VENTURE EARNINGS ARE TO BE POSTED IN MAY IN PARIS LVMH MOET HENNESSY LOUIS VUITTON LOST 86 FRENCH FRANCS OR 26 TO 3265 FRANCS 59322 AFTER HAVING DROPPED AS MUCH AS 33 THE LUXURYGOODS AND SPIRITS COMPANY CUT PRICES OF TWO OF ITS MAJOR CHAMPAGNE LABELS IN FRANCE SPAIN GERMANY AND SWITZERLAND CITING EUROPE'S VIOLENT CURRENCY FLUCTUATIONS AND A DEPRESSED CHAMPAGNE MARKET THE PRICES OF MOET & CHANDON AND MERCIER IN FRANCE WERE CUT 15 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 9302240050 930224 BUSINESS BRIEF HOMECARE MANAGEMENT INC SHARP INCREASE IN EARNINGS TO BE POSTED FOR 3RD QUARTER BOLSTERED BY A GROWING NUMBER OF PATIENTS IN ITS AFTERCARE PROGRAM FOR ORGAN TRANSPLANT RECIPIENTS HOMECARE MANAGEMENT INC SAID IT EXPECTS TO REPORT A LARGE INCREASE IN FISCAL THIRDQUARTER NET INCOME CLIFFORD E HOTTE CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT SEES NET INCOME FOR THE QUARTER ENDED JAN 31 OF ALMOST 500000 OR ABOUT NINE CENTS A SHARE A 93 INCREASE FROM LAST YEAR'S NET OF 257861 OR SIX CENTS A SHARE DR HOTTE EXPECTS REVENUE TO RISE 74 TO 68 MILLION FROM 39 MILLION LAST YEAR BASED IN RONKONKOMA NY THE COMPANY HAD 46 MILLION SHARES OUTSTANDING IN THE FISCAL 1992 THIRD QUARTER COMPARED WITH 58 MILLION NOW OVERALL THERE ARE ABOUT 15000 ORGAN TRANSPLANTS A YEAR WITH ABOUT 25000 PEOPLE AWAITING THEM OF THOSE WHO RECEIVE TRANSPLANTS HOMECARE MANAGEMENT HAS ABOUT 2600 PATIENTS IN ITS PROGRAMS EACH PAYS AN AVERAGE OF ABOUT 8000 A YEAR 9302240049 930224 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BALTIMORE GAS & ELECTRIC CO A SHELF OFFERING OF 350 MILLION OF FIRST REFUNDING MORTGAGE BONDS DIGITAL BIOMETRICS INC AN OFFERING OF ONE MILLION COMMON SHARES VIA DAIN BOSWORTH INC AND JOHN G KINNARD & CO INC EDUNETICS LTD AN OFFERING OF 18 MILLION ORDINARY SHARES VIA FURMAN SELZ INC AND TUCKER ANTHONY INC FEDERALMOGUL CORP A REGISTRATION STATEMENT TO OFFER 57 MILLION COMMON SHARES MICHIGAN NATIONAL CORP A SHELF OFFERING OF 150 MILLION OF DEBT SECURITIES SANMINA HOLDINGS INC AN OFFERING OF 295 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND COWEN & CO WEINGARTEN REALTY INVESTORS SBI AN OFFERING OF 25 MILLION SHARES OF BENEFICIAL INTEREST VIA MERRILL LYNCH & CO WHEELINGPITTSBURGH CORP AN OFFERING OF 10 MILLION COMMON SHARES VIA SALOMON BROTHERS AND MERRILL LYNCH 9302240048 930224 BUSINESS BRIEF HANSON PLC COURT UPHOLDS PEABODY PACT TO BUY MINES FROM COSTAIN PEABODY HOLDING CO THE US COAL OPERATING ARM OF HANSON PLC MAY PROCEED WITH PLANS TO BUY THE AUSTRALIAN COAL OPERATIONS OF COSTAIN GROUP PLC A US DISTRICT COURT IN ST LOUIS RULED COSTAIN AGREED IN OCTOBER 1992 TO SELL THE OPERATIONS TO PEABODY'S PEABODY RESOURCES LTD AFFILIATE FOR 200 MILLION PLUS THE ASSUMPTION OF 102 MILLION OF DEBT BUT THEN COSTAIN SIGNED A SEPARATE PACT TO SELL THE SAME ASSETS TO ALTUS FINANCE SA A UNIT OF CREDIT LYONNAIS PEABODY SAID IN HIS RULING THE JUDGE PERMANENTLY ENJOINED COSTAIN FROM PROCEEDING WITH THE SALE OF THE ASSETS TO ALTUS THE ASSETS INCLUDE TWO OPERATING SURFACE MINES PLUS ONE MINE THAT BEGINS PRODUCTION THIS YEAR UNDER TERMS PEABODY WOULD ALSO OWN OR MANAGE COSTAIN'S STAKE IN 663 MILLION TONS OF LOWSULFUR COAL RESERVES NEAR THE MINES PEABODY WHICH SOLD 91 MILLION TONS OF COAL LAST YEAR ESTIMATES THE THREE AUSTRALIAN MINES HAVE COMBINED PRODUCTION OF ABOUT FIVE MILLION TONS A YEAR 9302240047 930224 INTERNATIONAL IRAQ TURNS ITSELF INTO A VICTIM OF THE WEST AFTER LAST MONTH'S STRIKE BAGHDAD TAKES THE INITIATIVE BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BASRA IRAQ IN A CROWDED HOSPITAL WARD A WOMAN WAILS FOR HER HUSBAND AND SON WHO HAVE BEEN MISSING SINCE WESTERN JETS DESTROYED THEIR HOME THE EVENT IS RECORDED BY TV CAMERAS AROUND HER BED THE GRIM SCENE IS THE MAIN EVENT IN A GOVERNMENT TOUR OF IRAQI CASUALTIES FROM LAST MONTH'S ALLIED AIR STRIKES HOVERING NEARBY A PAIR OF LOCAL OFFICIALS OF SADDAM HUSSEIN'S BAATH PARTY LOOK PLEASED AS THEIR VICTIM OF WESTERN AGGRESSION VENTS HER ANGER FOR THE CAMERAS CHALK UP ANOTHER POINT FOR PRESIDENT SADDAM HUSSEIN THOUGH GEORGE BUSH'S PARTING SHOTS AT IRAQ WERE MILITARILY INSIGNIFICANT THE SKIRMISHES HAVE GIVEN THE IRAQI DICTATOR A BOUNTY OF AMMUNITION IN HIS WAR OF WORDS AND IMAGES AGAINST THE WEST AND IN THIS FIGHT FOR HIS OWN SURVIVAL SADDAM HUSSEIN HAS TAKEN THE INITIATIVE IRAQ HAS TURNED ITSELF INTO A VICTIM IT SEES ITSELF AS THE TARGET NOT THE PERPETRATOR OF ATROCITIES THAT THE IRAQI REGIME CAUSED THE NATION'S CURRENT WOES BY BRUTALLY OCCUPYING KUWAIT HARDLY SEEMS TO MATTER IN IRAQ ANY MORE SYMPATHY TODAY FLOWS ONLY INWARD THE WEST'S REACTION TO THE KUWAIT INVASION HAS REACHED SUCH HORRIFIC PROPORTIONS THAT THE ORIGINAL ACT HAS LOST ALL SIGNIFICANCE ARGUES JERUSALEMBORN JABRA I JABRA ONE OF THE ARAB WORLD'S MOST CELEBRATED NOVELISTS AND A BAGHDAD RESIDENT SINCE 1948 WE'RE DAZED WHY IS THE WESTERN WORLD DESTROYING US A WITHERING SENSE OF SELFPITY HAS SWEPT IRAQ IT HANGS IN ART GALLERIES WHERE A BURST OF WORKS BY YOUNG ARTISTS SINCE THE GULF WAR DEPICTS THE TERROR OF A THIRD WORLD NATION FACING THE WORLD'S STRONGEST ARMIES ALONE IT SHOWS ON PEOPLE'S FACES IN BAGHDAD'S NARROW ALLEYS WHERE ELDERLY WOMEN HAWK PERSONAL BELONGINGS OLD SHOES KNIVES AND FORKS ON CARDBOARD BOXES AND IT ECHOES IN THE GRIPES OF MIDDLECLASS IRAQIS WHO SAY THEY HAD JUST ASSUMED WHEN THE BOMBING STOPPED THAT THE US WOULD GET RID OF SADDAM HUSSEIN BUT THAT DIDN'T HAPPEN AND IN THIS CLIMATE OF RESIGNATION THE CHANCES OF TOPPLING SADDAM HUSSEIN'S REGIME BY POPULAR REVOLT NEVER HIGH TO BEGIN WITH AMID IRAQ'S PERVASIVE SECURITY NETWORK LOOK SLIMMER THAN EVER TERRIBLE MISCALCULATIONS HAVE BEEN MADE ON ALL SIDES SAYS A WESTERNEDUCATED ARTIST NAMED REBIHA IRAQ IS A COUNTRY THAT LITERALLY OUTLAWED DESSERT THREE MONTHS AGO TO CONSERVE RESOURCES AFTER 2 1/2 YEARS OF AN INTERNATIONAL TRADE EMBARGO THAT HAS CAUSED RUNAWAY INFLATION AND SCARCITIES OF NEARLY EVERYTHING THE STRUGGLE FOR SURVIVAL HAS ECLIPSED ALL OTHER CONCERNS FOR MOST IRAQIS REBIHA'S ONCEMIDDLECLASS FAMILY FOR EXAMPLE SPENDS MOST OF THE TIME CONFINED TO THE HOUSE FOOD RATIONS THOUGH SLIGHTLY INCREASED BY THE GOVERNMENT FEB 1 ARE TOO SMALL TO ENTERTAIN GUESTS REBIHA SAYS AND A CRIME WAVE HAS MADE GOING OUT UNSAFE TO MAKE MATTERS WORSE REBIHA HAS BEEN LOSING LARGE CLUMPS OF HAIR HER DOCTOR ADVISED HER TO AVOID STRESS AVOID STRESS CAN YOU IMAGINE SHE SAYS I LAUGHED IRAQIS VIEW THE GULF WAR THESE DAYS NOT AS A FIGHT OVER KUWAIT BUT AS SOME SORT OF COSMIC TEST OF THEIR CAPACITY TO OVERCOME ADVERSITY EVEN THE LEASTVICTIMIZED IRAQIS FEEL LIKE VICTIMS AT AL WIYA COUNTRY CLUB A WALLED OASIS OF LAWNS TENNIS COURTS AND SWIMMING POOLS IN DOWNTOWN BAGHDAD THE FAMILIES OF MERCHANTS AND GOVERNMENT OFFICIALS BASK OUTDOORS ON A WARM WINTER'S DAY INSIDE THE RAMBLING CLUBHOUSE BUILT BY BRITISH COLONISTS IN THE 1930S THE IRAQI NATIONAL SNOOKER CHAMPION IS TAKING ON CHALLENGERS IN THE MAIN TEA ROOM IRAQ'S BIGGEST COFFEE TRADER WHOSE WICKED NET GAME IS LEGENDARY ON THE CLUB'S CLAY TENNIS COURTS IS DISPENSING BAGS OF CONTRABAND COFFEE TO HIS FRIENDS ALL IRAQIS KNOW IN OUR HEARTS THAT WHAT HAPPENED IN 1991 WOULD HAVE HAPPENED EVENTUALLY SAYS ONE CLUB MEMBER WHOSE OWN IMPORT BUSINESS IS PROSPERING FROM THE EMBARGO THE WEST WOULD HAVE INVENTED A WAY TO TAKE ALL THIS AWAY FROM US TO MR JABRA THE NOVELIST THE MOST PAINFUL PART OF THE PAST TWO YEARS HAS BEEN THE REALIZATION THAT THE WEST PREFERS A BACKWARD ARAB WORLD THE WRITER WHO HAS TRANSLATED WORKS BY SHAKESPEARE AND FAULKNER INTO ARABIC AND TAUGHT AT HARVARD AND CAMBRIDGE UNIVERSITIES DESCRIBES THE NIGHT WESTERN BOMBS STARTED FALLING ON BAGHDAD SIMILAR VIEWS ARE CAST IN ARTWORKS CREATED SINCE THE GULF WAR IRAQI ARTISTS FEARING REPRISALS FROM THE REGIME CANNOT CRITICIZE SADDAM HUSSEIN OR THE INVASION OF KUWAIT BUT MANY OF THEIR DEPICTIONS OF LIFE UNDER THE EMBARGO AND THE BOMBS CLEARLY SPEAK FROM THE HEART AT BAGHDAD'S SADDAM ART CENTER THE PRESIDENTIAL GALLERY COMES FIRST OF COURSE SADDAM HUSSEIN THRESHING WHEAT WITH FARMERS SADDAM TELLING STORIES TO SOLDIERS BY THE GLOW OF A CAMPFIRE SADDAM POURING WATER FROM HIS OWN HANDS INTO IRAQ'S THIRD RIVER CANAL PROJECT THEN THE SORROWS BEGIN ONE OF THE MOST MOVING WORKS IS NADIA'S BOW A PAINTING OF A LOCK OF CHILD'S HAIR FOUND IN THE RUBBLE OF THE BOMBEDOUT AMARIYA SHELTER NEAR BAGHDAD OF THE DOZENS OF GULF WAR PAINTINGS ONLY A FEW SHOW IRAQI SOLDIERS IN COMBAT INDEED IN CONTRAST TO IRAQ'S EIGHTYEAR WAR WITH IRAN WHICH INSPIRED MANY HEROIC BATTLE SCENES IN THE MUSEUM THE BATTLE OVER KUWAIT ISN'T MEMORIALIZED AS A WAR AT ALL BUT AS AN INESCAPABLE SLAUGHTER THIS IMAGE IS FORCEFULLY DRAWN IN THREE CANVASES PAINTED FROM THE PERSPECTIVE OF AN IRAQI SOLDIER GAZING THROUGH THE WINDSHIELD OF HIS JEEP IN THE FIRST IMAGE HE SEES OTHER SOLDIERS STANDING IN THE DESERT AT THE EDGE OF A CALM SEA IN THE SECOND THE JEEP'S WINDSHIELD IS SHATTERED THE SEAS ARE RAGING AND THE OTHER SOLDIERS HAVE MELTED INTO BLACK PUDDLES AND BY THE THIRD THE SOLDIER HIMSELF HAS BEEN BLOWN TO BLOODY KHAKI SHREDS WHICH DANGLE FROM THE EMPTY PICTURE FRAME WITH THE SOLDIER'S HELMET AND THE SKELETAL REMAINS OF HIS HAND AT A DIFFERENT SORT OF WAR MUSEUM THE PIECES ARE PUT BACK TOGETHER AGAIN AT THE MUSEUM OF RECONSTRUCTION IN AN OLD OTTOMAN FORT ON THE TIGRIS RIVER TWO LONG CORRIDORS ARE JAMMED WITH SNAPSHOTS AND MODELS OF A HUNDRED OR SO BUILDINGS BRIDGES AND OIL INSTALLATIONS DETAILING HOW EACH LOOKED AFTER IT WAS BOMBED OR RANSACKED BY SHIITE REBELS AND HOW IT LOOKS NOW REBUILT THIS TESTIMONY TO IRAQI RESILIANCE IS HOW SADDAM HUSSEIN WANTS PEOPLE TO REMEMBER THE WAR RUIN AND RENEWAL IRAQ'S TRADE MINISTER MOHAMMED MEHDI SALEH GIVES TOURS OF A SIMILAR RECONSTRUCTION EXHIBIT IN HIS OUTER OFFICE AT ONE FOOD WAREHOUSE HE SAYS IRAQI ENGINEERS HOBBLED BY THE EMBARGO HAD TO INVENT AN INSULATION FROM LOCAL BRICKS MUD AND RICE HUSKS IT WORKS AS WELL AS IMPORTED SANDWICH BOARD THE MINISTER CLAIMS IT'S THE SAME STORY AT THE OIL MINISTRY WHERE OFFICIALS SHUFFLE VISITORS INTO A BASEMENT ROOM TO WATCH A 40MINUTE VIDEO ON EVERY IRAQI PIPE AND VALVE REFITTED IN THE PAST TWO YEARS THIS IS OUR VICTORY PROCLAIMS A MINISTRY SPOKESMAN 9302240046 930224 CLINTON ASSEMBLES PANEL OF TOP AIDES TO DEVELOP HIS KEY DOMESTIC PROPOSALS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS APPOINTED A TASK FORCE OF SENIOR OFFICIALS AND CABINET SECRETARIES TO DEVELOP SEVERAL OF HIS MAJOR DOMESTIC PROPOSALS SUCH AS ENTERPRISE ZONES AND COMMUNITY BANKS GENE SPERLING A DEPUTY AT THE NATIONAL ECONOMIC COUNCIL AND BRUCE REED THE DEPUTY DOMESTIC POLICY ADVISER ARE COCHAIRMEN OF THE WORKING GROUP THAT WILL DECIDE HOW TO USE THE 350 MILLION THAT THE ADMINISTRATION WANTS TO SPEND ON COMMUNITY BANKS OVER THE NEXT FOUR YEARS AND THE 24 BILLION FOR ENTERPRISE ZONES ESTABLISHING THIS THINK TANK OF TALENT FROM VARIOUS DEPARTMENTS IS THE LATEST EXAMPLE OF THE PRESIDENT'S EXERTING WHITE HOUSE CONTROL OVER POLICY INITIATIVES THAT HAD BEEN FORMED BY THE VARIOUS AGENCIES IN PREVIOUS ADMINISTRATIONS MR SPERLING SAID THE ARRANGEMENT NOT ONLY TEARS DOWN THE TRADITIONAL WALLS BETWEEN DOMESTIC AND ECONOMIC ADVISERS BY INCLUDING BOTH IN THE POLICYDEVELOPMENT STAGE BUT ALSO MOVES TO END RIVALRIES THAT OFTEN ARISE WHEN MORE THAN ONE AGENCY HAS AN INTEREST IN A PARTICULAR POLICY A SENIOR WHITE HOUSE AIDE SAID THE GROUP ALSO WILL BE MONITORING THE GOVERNMENT'S RESPONSE TO THE RIOTS IN LOS ANGELES AND THE HURRICANE VICTIMS IN FLORIDA IT WILL LOOK NOT ONLY AT URBAN ISSUES BUT ALSO RURAL ONES AND WILL FOCUS ON LONGRANGE PLANS AS WELL AS PROPOSALS FOR THE FISCAL YEAR BEGINNING IN OCTOBER THE GROUP WHICH HELD ITS FIRST MEETING LAST WEEK INCLUDES PAUL DIAMOND AND SHERYLL CASHIN OF THE ECONOMIC COUNCIL HOUSING SECRETARY HENRY CISNEROS AND HIS ASSISTANTS ANDREW CUOMO AND BRUCE KATZ TREASURY UNDERSECRETARY FRANK NEWMAN AGRICULTURE SECRETARY MICHAEL ESPY AND COMMERCE SECRETARY RON BROWN IN PUTTING MESSRS REED AND SPERLING IN CHARGE THE PRESIDENT HAS APPOINTED TWO CLOSE AIDES WHO ARE FAMILIAR WITH THE PROMISES MADE DURING THE PRESIDENTIAL CAMPAIGN ONE ADVISER SAID THE THEME FOR THE GROUP IS COMMUNITY DEVELOPMENT AND INDIVIDUAL EMPOWERMENT WHICH SOUNDS SIMILAR TO THE POLICIES PROMOTED BY THE DEMOCRATIC LEADERSHIP COUNCIL THE MODERATE GROUP THAT MR CLINTON HEADED BEFORE STARTING HIS CAMPAIGN LAST YEAR ROBERT RUBIN CHAIRMAN OF THE ECONOMIC COUNCIL HAS A STRONG INTEREST IN URBAN POLICY AND WILL BE INVOLVED WITH THE GROUP AS WILL CAROL RASCO THE PRESIDENT'S DOMESTIC POLICY ADVISER MR RUBIN PARTICIPATED IN THE GROUP ESTABLISHED BY NEW YORK GOV MARIO CUOMO TO ADDRESS THE NATION'S DOMESTIC WOES AND WROTE A REPORT ON THE INNER CITY FOR THAT GROUP IN THE CAMPAIGN MR CLINTON PROPOSED ENTERPRISE ZONES THAT OFFER WAGE CREDITS AS TAX BREAKS TO INDUSTRIES THAT OPERATE BUSINESSES IN INNERCITY AND RURAL COMMUNITIES THAT HAVE HAD DIFFICULTY ATTRACTING BUSINESSES THE COMPANIES COULD WRITE OFF A PERCENTAGE OF THE WAGES FOR EMPLOYEES AND WOULD BE REQUIRED TO HIRE A CERTAIN PERCENTAGE FROM THE SURROUNDING AREA HIS COMMUNITY BANKING PROPOSAL MODELED AFTER THE SOUTH SHORE BANK IN CHICAGO AND ELKHORN BANK IN ARKANSAS WOULD OFFER LOANS TO EMERGING NEIGHBORHOOD BUSINESSES THAT HAVE SOUND CREDIT BUT ARE USUALLY IGNORED BY THE LARGER FINANCIAL INSTITUTIONS MR REED SAID THE WORKING GROUP IS FOCUSING ON IMPLEMENTING THESE TWO PROPOSALS AT THE MOMENT AND SAID THEY HAVE GAINED SOLID SUPPORT ON CAPITOL HILL THIS IS A CLASSIC EXAMPLE OF HOW BILL CLINTON WANTS GOVERNMENT TO WORK INTERAGENCY COOPERATION THAT IS COORDINATED FROM THE WHITE HOUSE SAID MR REED 9302240045 930224 INTERNATIONAL UNILEVER STARTS TO SEE POSITIVE SIGNS AS NET INCOME ADVANCES TO 219 BILLION BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL ROTTERDAM THE NETHERLANDS AFTER THREE DIFFICULT YEARS UNILEVER ONE OF THE WORLD'S LARGEST CONSUMER PRODUCTS GROUPS IS SEEING SOME POSITIVE SIGNS THE FOOD AND HOMEPRODUCTS COMPANY POSTED 1992 RESULTS THAT ANALYSTS CALLED BETTER THAN EXPECTED NET INCOME ADVANCED 52 TO FOUR BILLION GUILDERS 219 BILLION ON STAGNANT SALES OF 7657 BILLION GUILDERS GUILDERDENOMINATED FIGURES UNDERSTATED UNILEVER'S REAL PERFORMANCE BECAUSE THE GUILDER HAS TENDED TO GAIN VALUE AGAINST THE DOLLAR AND THE POUND STATED IN POUNDS THE ANGLODUTCH COMPANY'S NET JUMPED A FULL 12 IF EXCHANGERATE EFFECTS COULD HAVE BEEN REMOVED ENTIRELY UNILEVER SAID ITS NET WOULD HAVE GROWN A HEALTHY 9 ON A 4 INCREASE IN SALES RICHARD WORKMAN FOOD INDUSTRY ANALYST AT LONDON BROKERAGE FIRM HOARE GOVETT SAID HE NOW EXPECTS UNILEVER'S 1993 PERSHARE PROFIT TO GROW AS MUCH AS 7 IN GUILDER TERMS HE PREVIOUSLY HAD FORECAST 56 GROWTH IN PERSHARE PROFIT HE EXPECTS A 23 JUMP IN POUND TERMS BECAUSE OF CONTINUING WEAKNESS IN THE POUND INDEED FLORIS MALJERS CHAIRMAN OF THE ANGLODUTCH GIANT'S DUTCH HALF SAID THE ENVIRONMENT ISN'T AS DIRE AS FEARED TO BE QUITE HONEST WE WERE A BIT SURPRISED OURSELVES PLEASANTLY SURPRISED HE SAID MR MALJERS ADDED THAT YEAREND SALES REINFORCE THE BELIEF THAT THE US ECONOMY MAY FINALLY BE RECOVERING MORE SURPRISING UNILEVER ALSO IS SEEING POSITIVE SIGNS IN GERMANY EUROPE'S BIGGEST AND ONE OF ITS MOST TROUBLED ECONOMIES MR MALJERS SAYS HE HAS HOPES THAT A EUROPEAN RECOVERY COULD BEGIN IN THE YEAR'S SECOND HALF SALES OF CONSUMER GOODS IN GERMANY WERE BETTER THAN EXPECTED IN THE FOURTH QUARTER MR MALJERS SAID HE WARNED THAT FOURTHQUARTER RESULTS CAN BE MISLEADING ESPECIALLY IN COUNTRIES WHERE PRECHRISTMAS PURCHASES ARE IMPORTANT STILL HE SAID IT IS A SIGN OF HOPE UNILEVER'S FIGURES INDICATE THAT GERMAN CONSUMER SPENDING IS NOWHERE NEAR AS BAD AS PESSIMISTS MIGHT EXPECT SAID MR WORKMAN THE ANALYST AND WHERE THEY'RE REALLY SEEING THE GROWTH RIGHT NOW IS IN SOUTHERN EUROPE WHICH FOR THEM MEANS ITALY SPAIN AND FRANCE STILL OPERATING PROFIT IN EUROPE SLIPPED 6 ON STAGNANT SALES EUROPEAN PROFIT MARGINS FELL TO 85 FROM 9 IN 1991 UNILEVER SAID MR MALJERS SAID THAT WITH CONSUMERS SWITCHING TO SIMPLER LESS EXPENSIVE PRODUCTS THE ONLY GOOD WAY TO KEEP PROFITS UP IS TO CUT COSTS HE SAID UNILEVER HAS BEEN ABLE TO BENEFIT FROM COSTCUTTING PROJECTS BEGUN IN 1990 THOSE CUTS AIMED AT REDUCING STAFF AND CREATING SPECIALIZED FACTORIES TO SUPPLY EUROPE'S INCREASINGLY UNIFIED MARKET ARE JUST NOW BRINGING SAVINGS HE SAID HE SAID UNILEVER ALSO BOOSTED AD SPENDING 85 WORLDWIDE IN 1992 WHICH HELPED IT MAINTAIN MARKET SHARE HE SAID HOWEVER THAT HE IS INCREASINGLY WORRIED BY THE UNHELPFUL POLITICAL TRENDS WHICH ARE NOW ALL TOO EVIDENT HE MENTIONED GROWING PROTECTIONIST PRESSURES IN COUNTRIES LIKE THE US AND FRANCE AND PRESSURE TO SLOW DOWN PROGRESS TOWARD EUROPE'S SINGLE MARKET SEPARATELY UNILEVER SAID IT ACQUIRED POLISH ICE CREAM MAKER ROMA INTERNATIONAL BASED IN BANINO NEAR GDANSK TERMS WEREN'T DISCLOSED 9302240044 930224 MORTGAGE BONDS ARE LEFT BEHIND IN LATEST RALLY BY BARBARA DONNELLY GRANITO STAFF REPORTER OF THE WALL STREET JOURNAL MANY BOND INVESTORS ARE FINDING THERE IS A WAY TO GET LEFT BEHIND IN ONE OF THE BIGGEST BOND RALLIES IN HISTORY INVEST IN MORTGAGEBACKED SECURITIES FALLING INTEREST RATES ARE DRIVING PRICES SHARPLY HIGHER IN MOST SECTORS OF THE BOND MARKET BUT NOT IN MORTGAGEBACKED BONDS LOWER RATES TEND TO BE BAD FOR MORTGAGEBACKED SECURITIES BECAUSE THEY CAUSE A RUSH OF REFINANCINGS BY HOMEOWNERS WHO ARE EAGER TO LOCK IN LOWER RATES WHAT HOMEOWNERS GAIN BY PREPAYING THEIR MORTGAGES TO REFINANCE AT LOWER RATES MORTGAGESECURITIES INVESTORS LOSE BY HAVING THEIR MONEY RETURNED TO THEM TO REINVEST AT UNAPPETIZING YIELDS INDEED THE RAPID RISE IN REFINANCING ACTIVITY IN RECENT WEEKS AND FEARS IN THE MARKET THAT REFINANCINGS WILL SOAR IN THE WEEKS AHEAD ARE CAUSING MORTGAGESECURITIES TO LANGUISH EVEN AS RATES CONTINUE TO DROP LAST WEEK FOR INSTANCE MUTUAL FUNDS THAT INVEST IN MORTGAGEBACKED BONDS EKED OUT GAINS OF ONLY 03 ON A TOTAL RETURN BASIS INCLUDING PRICE CHANGE PLUS INTEREST THAT'S ONLY ABOUT A THIRD AS MUCH AS THE 11 GAIN OF US TREASURY BOND FUNDS ACCORDING TO MORNINGSTAR INC THE POORER PERFORMANCE CAME DESPITE THE FACT THAT MORTGAGE SECURITIES OFFER ANNUAL YIELDS THAT ARE ROUGHLY ONE PERCENTAGE POINT HIGHER THAN THOSE ON TREASURYS A BIG INCREMENT IN TODAY'S LOW INTEREST RATE ENVIRONMENT ADJUSTABLERATE MORTGAGE FUNDS FARED WORSE POSING AVERAGE RETURNS OF LESS THAN 01 IN THE LATEST RALLY MORNINGSTAR DATA SHOW SIMILAR RESULTS FROM LIPPER ANALYTICAL SERVICES INC SHOWS THAT PRICE DECLINES AT SOME ADJUSTABLERATE FUNDS MORE THAN WIPED OUT THEIR INTEREST INCOME HANDING INVESTORS SMALL LOSSES ON A TOTALRETURN BASIS IN RECENT WEEKS IT'S THE THIRD TIME IN ROUGHLY A YEAR THAT MORTGAGE SECURITIES HAVE BEEN BUFFETED BY PREPAYMENT JITTERS AND WHILE MANY PROFESSIONALS PREDICT REFINANCINGS WON'T BE QUITE SO HUGE THIS TIME AROUND EVIDENCE OF HIGHER TURNOVER IN THE HOUSING MARKET ANOTHER SOURCE OF PREPAYMENTS RAISES NEW CONCERN PARTICULARLY REGARDING THE LOWCOUPON MORTGAGE SECURITIES THAT UNTIL NOW SEEMED SAFEST UNDER THE CIRCUMSTANCES BOND PROFESSIONALS SAY WOULDBE INVESTORS SHOULD PROBABLY STEER CLEAR OF MORTGAGEBACKED BONDS FOR NOW ESPECIALLY IF THEY THINK INTEREST RATES ARE HEADED EVEN LOWER FOR NEW MONEY I'D RECOMMEND HOLDING OFF FOR THE NEXT SEVERAL WEEKS SAYS WILLIAM GROSS MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT CO A LEADING BOND MANAGER THE MARKET IS TOO VOLATILE SO IT MIGHT BE BETTER TO STICK WITH INTERMEDIATE TREASURY BONDS AS A SUBSTITUTE UNTIL THE DUST SETTLES HE SAYS BUT FOR INVESTORS WHO ALREADY OWN MORTGAGE SECURITIES MR GROSS'S ADVICE IS STAY PUT RATES PROBABLY DON'T HAVE MUCH FURTHER TO FALL AND PRICES OF MORTGAGE BONDS ALREADY REFLECT A SUBSTANTIAL PICKUP IN PREPAYMENTS HE SAYS MOREOVER THE EXTRA YIELD IN MORTGAGE SECURITIES IS STILL SIGNIFICANT ENOUGH TO JUSTIFY THE RISK PREPAYMENTS ALWAYS STAND TO HIT SOME MORTGAGE SECURITIES A LOT HARDER THAN OTHERS IN TODAY'S MARKET FOR INSTANCE MORTGAGE SECURITIES WITH HIGH COUPONS OF 95 TO 10 OR MORE ARE CONSIDERED SOMEWHAT INSULATED FROM PREPAYMENT RISK BASED ON WHAT'S CALLED BURNOUT THE IDEA IS THAT IF HIGHRATE HOMEOWNERS HAVEN'T TAKEN ADVANTAGE OF LOWER RATES TO REFINANCE BY THIS POINT THEY PROBABLY NEVER WILL BY CONTRAST MORTGAGE BONDS WITH 8 TO 9 COUPONS ARE CONSIDERED TO BE AMONG THE RISKIEST THAT'S BECAUSE THE HOMEOWNERS WHOSE MORTGAGES BACK THESE BONDS HAVEN'T HAD MUCH OPPORTUNITY TO REFINANCE TO DATE SO THEY'RE MORE LIKELY TO JUMP AT THE CHANCE TODAY MEANWHILE CERTAIN TYPES OF COLLATERALIZED MORTGAGE OBLIGATIONS KNOWN AS PLANNED AMORTIZATION CLASS BONDS ARE CREATED WITH THE SOLE INTENT OF INSULATING INVESTORS FROM MORTGAGE PREPAYMENTS COMPANION CMOS ON THE OTHER HAND ARE MADE TO SHOULDER MORE THAN THEIR SHARE OF PREPAYMENT RISK AND SO SHOULD BE AVOIDED THE PROS SAY FOR INDIVIDUALS THE BEST THING WOULD BE TO BUY PACS BACKED WITH LOWERCOUPON MORTGAGE COLLATERAL SAYS MICHAEL WALDMAN A MANAGING DIRECTOR AT SALOMON INC UNFORTUNATELY THE MORTGAGE INVESTMENTS THAT ARE MOST POPULAR WITH INDIVIDUAL INVESTORS TEND TO BE MORE NOT LESS VULNERABLE TO PREPAYMENTS THESE MAY INCLUDE ADJUSTABLERATE MORTGAGE FUNDS GINNIE MAE FUNDS AND GENERAL US GOVERNMENT BOND FUNDS AS WELL AS COMPANION CMOS LAST YEAR GINNIE MAE FUNDS ALONE ATTRACTED 134 BILLION OF NEW MONEY FROM INVESTORS NOT INCLUDING REINVESTED DIVIDENDS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A MUTUAL FUND TRADE GROUP TOTAL ASSETS IN THOSE FUNDS SOARED ALMOST 50 TO 575 BILLION TRADITIONALLY SUCH FUNDS HAVE TENDED TO FAVOR MORTGAGE BONDS WITH COUPONS THAT ARE SLIGHTLY ABOVE THE GOING MARKET RATE IN THEORY THAT GIVES A NICE BOOST TO THEIR ADVERTISED YIELDS WITHOUT INVOLVING TOO MUCH PREPAYMENT RISK BUT WHEN INTEREST RATES HEAD SHARPLY LOWER YESTERDAY'S SLIGHT PREMIUM BONDS BECOME TODAY'S NOTSOSLIGHT PREMIUM BONDS AND THAT CAUSES TWO POTENTIAL PROBLEMS FOR INVESTORS NOT ONLY DO THESE BONDS BECOME THE MOST SUSCEPTIBLE OF ALL TO RISING PREPAYMENTS BUT AS WITH OTHER PREMIUM BONDS INVESTORS STAND TO LOSE PRINCIPAL WHEN THESE BONDS ARE PAID OFF AT FACE VALUE THE PRINCIPAL RISK IS CRITICAL NOW SAYS JACK ABLIN A SENIOR FUND MANAGER AT PRIVATE BANK A UNIT OF BANK OF BOSTON FOR INSTANCE MORTGAGE BONDS WITH 8 COUPONS HAVE TRADED AT ABOUT 105 OF THEIR FACE VALUE IN RECENT DAYS THAT MEANS YOU STAND TO LOSE 5 OF YOUR MONEY ON EVERY PREPAYMENT HE SAYS SOME MORTGAGE FUNDS MAINLY ADJUSTABLE RATE MORTGAGE FUNDS HAVE MADE A BAD SITUATION WORSE BY TRYING TO BOOST YIELDS WITH ARCANE INTERESTONLY CMOS OR IOS WHICH ARE HYPERSENSITIVE TO PREPAYMENTS IO PRICES HAVE PLUMMETED 20 OR MORE IN RECENT WEEKS A BIG FACTOR IN SOME FUNDS' POOR PERFORMANCE FOR INVESTORS WHO DO WANT TO BRAVE THE MORTGAGEBACKED MARKET THE BOTTOM LINE IS AVOIDING VOLATILITY LOOK FOR A FUND WITH STEADY PERFORMANCE IN UP AND DOWN MARKETS EVEN IF AT THE MOMENT IT ISN'T OFFERING THE HIGHEST YIELD SAYS ANDREW CARRON HEAD OF MORTGAGE RESEARCH AT FIRST BOSTON CORP WATCH OUT FOR HIGHYIELDING FUNDS THAT HAVE A LOT OF VOLATILITY 9302240043 930224 ECONOMY DEMOCRATS VOW TO ACCELERATE BUDGET ACTION MOVE SEEKS TO EMPHASIZE SPENDING CUTS BOLSTER STIMULUS BILL'S SUPPORT BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS PROMISED TO ACCELERATE ACTION ON PRESIDENT CLINTON'S BUDGET IN CONGRESS AS PART OF A STRATEGY TO EMPHASIZE SPENDING CUTS IN THE ECONOMIC PLAN AND SHORE UP POLITICAL SUPPORT FOR A 16 BILLIONPLUS STIMULUS BILL THIS SPRING THE SHIFT OF TACTICS REFLECTS CLOSE COORDINATION WITH THE WHITE HOUSE AND DOVETAILS WITH COMMENTS BY MR CLINTON EMPHASIZING HIS COMMITMENT TO ADD STILLUNSPECIFIED SAVINGS TO HIS DEFICITREDUCTION PLAN TOP WHITE HOUSE AIDES INCLUDING THE PRESIDENT'S COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS CAME TO THE CAPITOL YESTERDAY TO MEET WITH HOUSE LEADERS WHO HAVE BEEN UNDER PRESSURE FROM RANKANDFILE MEMBERS TO EXPEDITE THE BUDGET BEFORE DEMANDING VOTES ON NEW SPENDING CHAIRMAN MARTIN SABO D MINN SAID THE HOUSE BUDGET COMMITTEE COULD BEGIN TO DRAFT A BUDGET RESOLUTION WITHIN TWO WEEKS AND HOUSE AND SENATE LEADERS SPOKE BY TELEPHONE WITH THE PRESIDENT LAST NIGHT IN A HIGHPROFILE COMMITMENT TO SPEEDING ACTION ON THE BUDGET BEFORE THE STIMULUS INVESTMENT PACKAGE IS CONSIDERED BY THE HOUSE SAID SPEAKER THOMAS FOLEY LATER IT'S IMPORTANT FOR THE MEMBERS AND THE COUNTRY TO UNDERSTAND THAT WE ARE COMMITTED TO THE BROAD PROGRAM INCLUDING SPENDING CUTS BY THE BUDGET RESOLUTION WE COMMIT TO THE WHOLE BALANCED PROGRAM A BUDGET RESOLUTION SETS TARGETS FOR SPENDING AND TAX CHANGES THAT CONGRESSIONAL COMMITTEES USE IN CRAFTING APPROPRIATIONS AND TAX BILLS FOR LATER CONSIDERATION BY THE ENTIRE CONGRESS IN A JOINT STATEMENT THE HOUSE AND SENATE LEADERS SOUGHT TO GIVE MR CLINTON CREDIT FOR THE DECISION SAYING THEY WERE ACTING AT THE PRESIDENT'S REQUEST THOUGH THE PRECISE TIMING IS UNCLEAR HOUSE DEMOCRATS SAID THEY HOPED TO VOTE ON THE RESOLUTION BY MARCH 17 AND THEN ACT ON THE STIMULUS BILL THE NEXT DAY BY ITSELF THIS IS AN AMBITIOUS UNDERTAKING AS THE RESOLUTION WILL ENCOMPASS A COMPLEX SET OF RECONCILIATION INSTRUCTIONS TO HOUSE AND SENATE COMMITTEES ORDERING THEM TO ENACT THE PROMISED SAVINGS AND TAXES DELAYS ARE TO BE EXPECTED BUT BUDGET DIRECTOR LEON PANETTA WHO PREVIOUSLY HEADED THE HOUSE PANEL IS LIKELY TO PROVIDE STAFF AND EXPERTISE TO ASSIST IN PREPARING THE LEGISLATION TREASURY SECRETARY LLOYD BENTSEN WHO LAST WEEK URGED CONGRESS TO ACT RIGHT AWAY TO APPROVE THE STIMULUS SPENDING PACKAGE CHANGED HIS TUNE YESTERDAY AT THE HOUSE BUDGET COMMITTEE MR BENTSEN SAID HE DOESN'T BELIEVE THAT A STIMULUS SHOULD BE PASSED WITHOUT ALSO ADOPTING THE CORRESPONDING REDUCTIONS IN SPENDING AFTER THE HEARING MR BENTSEN TOLD REPORTERS THAT THE CLINTON ADMINISTRATION ISN'T ANY LONGER PRESSING CONGRESS TO TAKE UP THE STIMULUS FIRST WE'RE LEAVING THAT TO THE LEADERSHIP THE SECRETARY SAID THEY'RE THE ONES THAT SCHEDULE THE PROGRESS OF LEGISLATION AND IT'S UP TO THEM TO SEE WHAT HAS TO BE DONE TO SEE THAT THIS PACKAGE THAT ONE DOESN'T PASS WITHOUT THE OTHER THE ADMINISTRATION BELIEVES IT MUST TAKE ADVANTAGE OF MOMENTUM GENERATED BY THE PRESIDENT DURING THE PAST WEEK AND TOP STAFF FOR HOUSE AND SENATE FISCAL COMMITTEES WERE CALLED TO THE WHITE HOUSE FOR A STRATEGY MEETING THAT HELPED SET THE STAGE FOR MR CLINTON'S PHONE CONFERENCE WITH THE LEADERSHIP THE LEADERSHIP OF THE HOUSE APPROPRIATIONS COMMITTEE BEGAN HEARINGS ON THE STIMULUS BILL YESTERDAY IN ANTICIPATION OF MOVING QUICKLY TO THE FLOOR NEXT WEEK SENSING THE UNEASE ON THE DEMOCRATIC SIDE REPUBLICANS SOUGHT TO FORCE DELAYS BY INVOKING RULES ENSURING THE MINORITY MORE TIME FOR TESTIMONY THE OFTEN RANCOROUS EXCHANGES WERE STRIKING FOR A PANEL THAT PRIDES ITSELF ON ITS BIPARTISAN TRADITION THESE TENSIONS ARE SURE TO BE MORE PRONOUNCED IN THE SENATE AND THE ADMINISTRATION WANTS TO MAKE ADJUSTMENTS NOW TO ENSURE IT COMES OUT OF THE HOUSE WITH THE STRONGEST AND MOST UNIFIED POSITION FRESHMEN DEMOCRATS WHO MET LAST EVENING ON THE BUDGET ISSUE HAVE BEEN AMONG THOSE MOST OUTSPOKEN ON THE NEED TO ACT ON THE BUDGET FIRST BUT THE STIMULUS PACKAGE REMAINS A MAJOR COMMITMENT FOR THE PRESIDENT AND ONE THAT HE CAN'T AFFORD TO DISMISS WITHOUT HURTING HIMSELF AMONG THOSE MOST SENSITIVE TO UNEMPLOYMENT AT HOME YOU CAN'T RAISE EXPECTATIONS AND NOT ACT SAID REP BOBBY RUSH D ILL WHOSE CHICAGO DISTRICT INCLUDES BLACK NEIGHBORHOODS WITH A HIGH JOBLESS RATE MY PEOPLE SAY 'WE WANT TO GET BACK TO WORK' THEY NEED JOBS IT IS IMPORTANT TO PUT THIS IN PLACE BEFORE THE SUMMER THOUGH THE LEADERSHIP IS CONFIDENT IT WILL PREVAIL DELAYING THE SPENDING BILL ISN'T WITHOUT RISK THE LONGER IT GOES THE MORE DIFFICULT IT WILL BE TO PASS IT WITHOUT CHANGES SAID REP JOHN MURTHA D PA A SENIOR MEMBER OF THE APPROPRIATIONS COMMITTEE REPUBLICANS BELIEVE THAT WITH MORE TIME THEY CAN MAKE A CASE AGAINST SOME OF THE SPENDING PROVISIONS SENATE GOP LEADER ROBERT DOLE SAID FLATLY YESTERDAY THAT MR CLINTON'S PLAN IS IN REAL TROUBLE DESPITE THE PRESIDENT'S ACKNOWLEDGED POPULARITY MR DOLE SAID HIS OFFICE IS RECEIVING INCREASINGLY NEGATIVE CALLS FROM CONSTITUENTS IN HIS HOME STATE OF KANSAS AND TOGETHER WITH THE RANKING REPUBLICANS ON THE SENATE BUDGET AND FINANCE COMMITTEES HE RELEASED AN ANALYSIS HIGHLIGHTING WHAT HE SAID WERE 178 BILLION IN INCREASED FEDERAL EXPENDITURES UNDER THE CLINTON PROGRAM OVER THE NEXT FOUR TO FIVE YEARS THE NUMBER IS INFLATED IN PART BY INCLUDING A PORTION OF THE EARNED INCOME TAXCREDIT BENEFITS TO POOR WORKINGCLASS FAMILIES UNDER THE PRESIDENT'S PROPOSAL BUT ALSO INCLUDES AN ARRAY OF PROMISED INCREASES IN FOOD STAMPS SCIENCE AND RESEARCH FUNDING AND MR CLINTON'S PROPOSED NATIONAL SERVICE PROGRAM THE SHIFT IN TACTICS WAS APPLAUDED BY FISCALLYCONSERVATIVE MEMBERS OF THE LARGE CLASS OF HOUSE DEMOCRATIC FRESHMAN WHO HAVE EXPRESSED SUPPORT FOR A TOUGHER LINE ON SPENDING BUT SOME INSIST THAT THE ADMINISTRATION STILL NEEDS TO PROPOSE MORE CUTS ONE OF THEM REP TOM BARLOW D KY WON'T COMMIT TO SUPPORTING THE STIMULUS PACKAGE EVEN THOUGH IT MAY INCLUDE DEVELOPMENT FUNDS FOR HIS LARGELY RURAL DISTRICT I DON'T THINK LAWMAKERS ARE BEING BOUGHT OFF BY THE PROMISE OF HOMETOWN SPENDING MR BARLOW SAID THE PRESIDENT FELT OBLIGED TO GIVE A RHETORICAL NOD TO SUCH SENTIMENTS IN A SPEECH TO THE US CHAMBER OF COMMERCE YESTERDAY I AM SURE AFTER NOW ALMOST FIVE WEEKS IN OFFICE THAT THERE ARE MORE CUTS COMING MR CLINTON SAID I CAN TELL YOU I WILL FIND MORE BUT MR CLINTON'S SPOKESMAN MR STEPHANOPOULOS INDICATED LATER THAT THE PRESIDENT WASN'T TALKING ABOUT IDENTIFYING NEW CUTS IN TIME FOR THE FISCAL 1994 BUDGET HE IS TO SUBMIT NEXT MONTH EVEN IF HE DID IT'S FAR FROM CLEAR THAT SIGNIFICANT NEW CUTS COULD COMMAND MAJORITY SUPPORT I DON'T SEE ANY GREAT VISTAS OF OPPORTUNITY HERE SAID HOUSE MAJORITY LEADER RICHARD GEPHARDT AND TREASURY SECRETARY BENTSEN TOLD THE HOUSE BUDGET COMMITTEE WE THINK WE'RE STRETCHING THE ENVELOPE NOW LAYING OUT A CHALLENGE TO CRITICS OF THE ECONOMIC PROGRAM BUDGET DIRECTOR PANETTA SAID THAT OPPONENTS NEED TO PRODUCE 316 BILLION IN ADDITIONAL SPECIFIC SPENDING CUTS OVER FIVE YEARS TO MATCH THE ADMINISTRATION'S PROPOSED DEFICIT REDUCTIONS MR PANETTA NOTED THAT THE CRITICS WHO OPPOSE TAX INCREASES OPPOSE ADDITIONAL DEFENSE SAVINGS AND SUPPORT TAX INCENTIVES WOULD NEED TO PRODUCE THE EXTRA 316 BILLION EVEN IF THEY ELIMINATED ALL THE PRESIDENT'S PROPOSED INVESTMENTS IN EDUCATION HEALTH CARE INFRASTRUCTURE AND TECHNOLOGY DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9302240042 930224 POLITICS & POLICY CLINTON'S CHOICE FOR CZAR OF ALL THE RUSSIA POLICIES TO GET BIG JOB MUCH AUTHORITY MANY HEADACHES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN REPUBLICANS WERE BEATING UP ON BILL CLINTON FOR HIS STUDENTERA VISIT TO MOSCOW STROBE TALBOTT FELT GUILTY AFTER ALL IT WAS MR TALBOTT'S GLOWING REPORTS OF HIS OWN VACATION IN RUSSIA THAT PERSUADED HIS OXFORD ROOMMATE TO MAKE THE TRIP BUT MR CLINTON HOLDS NO GRUDGE INSTEAD HE HAS REWARDED THE FORMER TIME MAGAZINE COLUMNIST AND RUSSIA SCHOLAR WITH A POSITION OF REMARKABLE SCOPE AND INFLUENCE OVERSEEING US POLICY TOWARD THE FORMER SOVIET REPUBLICS NOT JUST FOR THE STATE DEPARTMENT BUT FOR THE ENTIRE ADMINISTRATION FOR OBVIOUS REASONS OFFICIALS DON'T USE THE WORD CZAR TO DESCRIBE HIS ROLE BUT THAT'S WHAT HE IS MR TALBOTT WHO IS TRYING TO AVOID THE PUBLIC SPOTLIGHT UNTIL HIS SENATE CONFIRMATION PROCEEDINGS IS EXPECTED TO COME INTO OFFICE WITH BIG PLANS THE ADMINISTRATION WANTS NOT ONLY TO REFOCUS BUT TO INCREASE US AID TO RUSSIA PROPOSALS UNDER DISCUSSION COULD POTENTIALLY ADD AS MUCH AS 500 MILLION TO 1 BILLION TO CURRENTLY PLANNED ASSISTANCE LEVELS ALTHOUGH OFFICIALS INSIST THEY WILL FIRST TRY TO FIND THE MONEY WITHOUT INCREASING THE OVERALL FOREIGN AID BUDGET YET THE QUESTION IS HOW MUCH EVEN A CERTIFIED FOB OR FRIEND OF BILL CAN ACHIEVE AT A TIME WHEN AMERICANS ARE BEING ASKED TO TIGHTEN THEIR BELTS BY PAYING HIGHER TAXES AND RECEIVING REDUCED BENEFITS ANY INCREASES IN FOREIGN AID LET ALONE IN AID TO RUSSIA WITH ITS SHAKY ECONOMIC AND POLITICAL STRUCTURE WOULD SET OFF A POLITICAL STORM I DON'T SEE HOW ANY ADMINISTRATION THAT HAS JUST PROPOSED A MASSIVE TAX HIKE IN ONE BREATH CAN THEN PROPOSE IN THE SECOND BREATH THAT MORE AID BE SENT TO A FOREIGN COUNTRY SAYS CALIFORNIA REPUBLICAN REP DANA ROHRABACHER BUT WISCONSIN DEMOCRATIC REP DAVID OBEY CHAIRMAN OF THE APPROPRIATIONS PANEL THAT OVERSEES FOREIGN AID SAYS THAT WHILE AIDING RUSSIA MAY BE POLITICALLY DIFFICULT IT IS WELL WORTH OUR INVESTMENT TO TAKE A TINY PIECE OF WHAT WE HAVE BEEN SPENDING ON THE MILITARY AND TRY TO CONVERT IT INTO A DIFFERENT KIND OF SECURITY SPENDING THE MOST CONTROVERSIAL IDEA UNDER CONSIDERATION BY THE ADMINISTRATION'S RUSSIA TEAM IS A MULTIBILLION DOLLAR INTERNATIONALLY FINANCED SOCIAL SAFETY NET TO HELP THE RUSSIAN GOVERNMENT MAKE POLITICALLY DIFFICULT ECONOMIC REFORMS THE IDEA IS THAT WAGES IN RUSSIA ARE SO LOW THAT THE INDUSTRIALIZED NATIONS COULD FAIRLY CHEAPLY PROVIDE A PACKAGE OF BENEFITS SUCH AS UNEMPLOYMENT INSURANCE OLDAGE PENSIONS AND PERHAPS RETRAINING FOR DISPLACED WORKERS THAT WOULD ENCOURAGE THE GOVERNMENT TO SHUT DOWN INEFFICIENT STATE ENTERPRISES ESTIMATES OF HOW MUCH SUCH A PLAN WOULD COST GO AS HIGH AS 8 BILLION A YEAR THOUGH US OFFICIALS SAY 3 BILLION IS A MORE REALISTIC FIGURE OFFICIALS SAY THEY WOULD FIRST LOOK TO INTERNATIONAL LENDING INSTITUTIONS TO COME UP WITH FUNDS FOR SUCH A PLAN OUT OF EXISTING RESOURCES BUT THEY ACKNOWLEDGE THAT THEY COULD END UP HAVING TO HIT UP THE INDUSTRIALIZED DEMOCRACIES FOR MORE MONEY EVEN THOUGH THE US CONTRIBUTION MIGHT ONLY BE A RELATIVELY SMALL PORTION OF THE FUNDS NEEDED IT COULD STILL AMOUNT TO MORE THAN 500 MILLION AND WOULD BE WILDLY UNPOPULAR AMONG VOTERS AND ON CAPITOL HILL SEPARATELY THE ADMINISTRATION WILL SEEK TO INCREASE ASSISTANCE TO THE FORMER SOVIET REPUBLICS FOR FISCAL 1994 TO MORE THAN 700 MILLION FROM A PROJECTED 400 MILLION ACCORDING TO ONE OFFICIAL ADMINISTRATION OFFICIALS SAY THEY PLAN TO PAY FOR THE INCREASE BY SHUFFLING MONEY IN EXISTING AID PROGRAMS WHETHER SUCH IDEAS REPRESENT THE NAIVE ENTHUSIASM OF THE NEWLY APPOINTED OR A GENUINE REFLECTION OF A PRESIDENTIAL MANDATE SHOULD BECOME CLEARER SOON AS PRESIDENT CLINTON GETS READY FOR HIS FIRST SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN A DATE FOR THE SUMMIT COULD BE ANNOUNCED TOMORROW WHEN SECRETARY OF STATE WARREN CHRISTOPHER MEETS IN GENEVA WITH HIS RUSSIAN COUNTERPART ANDREI KOZYREV INDIANA REPUBLICAN SEN RICHARD LUGAR WHO WAS AMONG THE FIRST TO URGE THE NAMING OF A SPECIAL COORDINATOR IS ENCOURAGED BY MR TALBOTT'S APPOINTMENT WE'D GO TO FORMER SECRETARY OF STATE LARRY EAGLEBURGER AND SAY LET'S WORK ON HOUSING AND HE'D AGREE ONLY TO FIND OUT THAT SOME OTHER PART OF THE BUREAUCRACY HAD OTHER PLANS SAYS SEN LUGAR THERE WAS NO SINGLE VOICE NO SINGLE POLICY CLINTON AIDES ADMIT THEY WOULD HAVE LIKED TO POSTPONE DEALING WITH RUSSIA AND THE POLITICALLY MESSY AID QUESTION FOR MANY MORE MONTHS BUT THEY SAY MR YELTSIN'S PROBLEMS ARE TOO URGENT AND HIS SURVIVAL TOO IMPORTANT TO WAIT DIMITRI SIMES A RUSSIA EXPERT AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE SAYS THAT MR YELTSIN AT A MINIMUM NEEDS MORE LENIENCY FROM THE CLINTON ADMINISTRATION ON ISSUES SUCH AS ARMS CONTROL SERBIA AND INTERNATIONAL LENDING THE BUSH ADMINISTRATION HE SAYS WAS ALWAYS LOOKING TO SQUEEZE THE LAST POSSIBLE ADVANTAGE IN ITS DEALINGS WITH RUSSIA BUT HE SAYS EACH CONCESSION MR YELTSIN MADE TO WASHINGTON ONLY ENDED UP DRIVING HIM FURTHER AWAY FROM THE POLITICAL CENTER AT HOME FOUR MAJOR ELEMENTS OF POLICY CLINTON AIDES EMPHASIZE FOUR MAJOR PARTS TO THEIR EMERGING POLICY TOWARD RUSSIA A MORE VISIBLE PERSONAL RELATIONSHIP BETWEEN MR CLINTON AND MR YELTSIN MORE SENSITIVE DIPLOMATIC COOPERATION ON A HOST OF INTERNATIONAL ISSUES INCLUDING IRAQ AND BOSNIA A MORE EFFICIENT USE OF RESOURCES ALREADY IN THE PIPELINE AND IN CONCERT WITH US ALLIES MORE ECONOMIC AID MR TALBOTT AND COMPANY WILL BEGIN THEIR WORK WITH A CUSHION OF CASH IN TECHNICAL AID LEFT OVER FROM THE BUSH ADMINISTRATION WHICH UNTIL ITS LAST YEAR WAS NOTORIOUSLY SLOW IN STARTING PROJECTS OF ABOUT 650 MILLION ALLOCATED IN FISCAL 1992 AND 1993 ONLY ABOUT 240 MILLION HAS BEEN COMMITTED ONE WAY CLINTON AIDES HOPE TO ENCOURAGE MORE PRIVATE INVESTMENT BY US COMPANIES WOULD BE TO USE US MISSIONS ESPECIALLY IN THE MORE REMOTE REPUBLICS AS BUSINESS CENTERS TO PROVIDE INFORMATION AND SUPPORT TO US ENTREPRENUERS AIDES SAY THEY ALSO ARE LOOKING AT WAYS TO LOOSEN UP A HOST OF LEGAL RESTRICTIONS FROM TECHNOLOGY TRANSFERS TO LIMITS ON INVESTORS' INSURANCE THAT CURRENTLY MAKE INVESTING IN RUSSIA LESS ATTRACTIVE BUT OFFICIALS ARE LESS SURE HOW THEY WILL GET AGRICULTURAL CREDITS FLOWING AGAIN A PROJECT DEAR TO THE HEART OF US FARMERS RUSSIA IS CURRENTLY BEHIND ON ITS PAYMENTS AND THUS BARRED FROM FURTHER BORROWING STEPHEN SESTANOVICH OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES A WASHINGTON THINK TANK SAYS THAT THE BUSH ADMINISTRATION CAME UP WITH MANY OF THE SAME IDEAS AS THE CLINTON TEAM BUT FOUND THEIR EFFORTS BLOCKED BY CONFUSION AND BUREAUCRATIC CHAOS INSIDE RUSSIA THESE ARE ALL SENSIBLE GOALS HE SAYS BUT THE OBSTACLES INSIDE RUSSIA ARE CONSIDERABLE THEY DON'T EVEN HAVE A LAW ON PRIVATE PROPERTY YET EVEN MORE DAUNTING IS THE QUESTION OF WHERE THE ADMINISTRATION WOULD GET THE CASH TO FINANCE BIGTICKET PROJECTS LIKE THE SOCIAL SAFETY NET ADMINISTRATION OFFICIALS PREDICT THAT SOONER OR LATER MR CLINTON HIMSELF WILL HAVE TO TAKE TO THE STUMP TO CONVINCE AMERICANS THAT MORE HELP FOR RUSSIA IS IN THEIR BEST INTERESTS AIDES UNDERSTAND IT WILL BE A TOUGH SELL BUT NECESSARY IMAGINE TRYING TO CUT OUR MILITARY BUDGET WITH A HOSTILE GOVERNMENT IN MOSCOW SAYS ONE SENIOR OFFICIAL WHATEVER ANYONE SAYS THE RUSSIA ISSUE IS A DOMESTIC ISSUE FOR THE US 9302240041 930224 CHILLY SUNSET FIRMS' ATTEMPTS TO CUT HEALTH BENEFITS BREAK CALM OF RETIREMENT CHIQUITA MEATPACKING UNIT CITES SURGING COSTS SUES ANGRY FEARFUL RETIREES BAD NEWS AT THE BINGO CLUB BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL SIOUX FALLS SD THE MONTHLY BINGO CLUB MEETING OF JOHN MORRELL & CO RETIREES HASN'T BEEN THE SAME SINCE THE MEATPACKER SUED ITS FORMER WORKERS MEMBERS STILL RECITE THE PLEDGE OF ALLEGIANCE AND HEAR A READING OF NAMES OF THOSE WHO'VE DIED SINCE THE LAST MEETING BUT THEN THE MEETING AT A BRICK BUILDING CALLED THE LABOR TEMPLE INVARIABLY TURNS TO WHAT MANY SEE AS AN EMPLOYER'S BROKEN PROMISE MORRELL IS TRYING TO CHANGE 3300 RETIREES' HEALTH BENEFITS WHAT WE AGREED TO WAS FOR LIFE SAYS FRANCIS MCDONALD WHO 26 YEARS AGO HELPED NEGOTIATE THE POSTEMPLOYMENT HEALTH BENEFITS WITH THE MEATPACKING COMPANY LONG A MAINSTAY OF THIS PLAINS CITY'S ECONOMY NOW SAYS THE 80YEAROLD THEY COME AROUND AND WANT TO DO SOMETHING ELSE AND WE'RE STILL LIVING ACROSS THE COUNTRY A RAPIDLY GROWING NUMBER OF RETIRED WORKERS ARE FINDING THEMSELVES FORCED TO FOOT MORE OF THEIR MEDICAL BILLS THEIR FORMER EMPLOYERS FACED WITH EXPLODING HEALTH COSTS ARE REDUCING OR ELIMINATING RETIREE BENEFITS CONSIDERED SACROSANCT A FEW YEARS AGO NEARLY HALF OF EMPLOYERS SURVEYED LAST SUMMER BY CONSULTANTS WILLIAM M MERCER INC HAD ASKED RETIREES TO PAY MORE OF THEIR MEDICALINSURANCE PREMIUMS A SIMILAR LARGE PERCENTAGE HAD INCREASED MEDICAL DEDUCTIBLES OR COPAYMENTS NINE PERCENT HAD ELIMINATED BENFITS FOR FUTURE RETIREES UNISYS CORP FOR INSTANCE INTENDS TO STOP PAYING FOR ANY MEDICAL BENEFITS FOR BOTH CURRENT AND FUTURE RETIREES SOME OTHER COMPANIES SUCH AS NAVISTAR INTERNATIONAL CORP ARE SHIFTING MORE OF THE HEALTH COSTS TO RETIREES JUST AS THEY HAVE DONE ALREADY WITH MANY OF THEIR ACTIVE EMPLOYEES STILL OTHERS SUCH AS DU PONT CO SAY THEY WILL PAY ONLY A PORTION OF FUTURE COST INCREASES FOR EMPLOYEES AND RETIREES DU PONT ARGUES THAT RISING MEDICAL COSTS THREATEN ITS COMPETITIVENESS HEALTHCARE COSTS FOR ACTIVE AND RETIRED WORKERS EQUALED 31 OF MANUFACTURERS' PROFITS IN 1991 ACCORDING TO A SURVEY BY THE NATIONAL ASSOCIATION OF MANUFACTURERS AS NEW RULES FORCE EMPLOYERS TO ACCOUNT FOR THE FUTURE COST OF RETIREE BENEFITS SHIFTING EXPENSES TO RETIREES IS THE MOST EFFECTIVE WAY TO PARE THE HUGE CHARGES THE BENEFIT CUTBACKS MEAN A NEW ERA OF UNCERTAINTY FOR RETIREES WHO THOUGHT ONE OF LIFE'S BIGGEST WORRIES WAS BEHIND THEM SPIRALING HEALTH COSTS ARE THE NO 1 THREAT TO THE FINANCIAL SECURITY OF OLDER PEOPLE SAYS JAMES FIRMAN PRESIDENT OF THE UNITED SENIORS HEALTH COOPERATIVE IN WASHINGTON MANY RETIREES BENEFITS EXPERTS SAY HAVE IT BETTER THAN THOSE WHO PRECEDED OR THOSE WHO WILL FOLLOW THEM MOST COMPANIES DIDN'T START PROVIDING RETIREE HEALTH BENEFITS UNTIL AFTER WORLD WAR II AND SOME ARE DROPPING POSTEMPLOYMENT COVERAGE FOR FUTURE RETIREES MEDICARE ENACTED IN 1965 PAYS MUCH OF PHYSICIAN AND HOSPITAL COSTS FOR THE ELDERLY THOUGH NOT FOR PRESCRIPTION DRUGS OR LONGTERM CARE BUT THAT IS ONLY PARTIAL CONSOLATION TO THE ESTIMATED EIGHT MILLION RETIREES WHO COUNT ON COMPANYPAID BENEFITS TO FILL THE GAP SO RETIREES ARE FIGHTING BACK AND AS THEY DO SO MANY OF THE DISPUTES END UP IN COURT WHILE SOME RETIREES CAN POINT TO CONTRACT OR BENEFITPLAN DOCUMENTS PROMISING UNCHANGED BENEFITS AND IN OTHER INSTANCES COMPANIES HAVE CLEARLY RESERVED THE RIGHT TO MAKE CHANGES MANY OTHER CASES FALL BETWEEN THOSE EXTREMES THEN JUDGES MUST SORT THROUGH MOUNDS OF DOCUMENTS AND ORAL TESTIMONY TO DECIDE WHAT IF ANYTHING WAS PROMISED TO THE RETIREES TODAY SOME EMPLOYERS ACTUALLY ARE GOING TO COURT TO SUE THEIR RETIREES HOPING TO CONTROL THE ENSUING LEGAL STRUGGLE THAT'S WHAT MORRELL DID THROUGH THE CHICAGO LAW FIRM OF MCDERMOTT WILL & EMERY WHICH HAS GAINED A REPUTATION AS EXPERT IN PARING RETIREE HEALTH BENEFITS RESISTING IS THE UNITED FOOD AND COMMERCIAL WORKERS UNION WHICH REPRESENTS THE 2800 HOURLY MORRELL WORKERS IN THIS CITY OF 105000 FOR A DECADE THE UNION FOUGHT A LOSING BATTLE AGAINST MORRELL AND OTHER MEATPACKERS DETERMINED TO CUT THEIR LABOR COSTS THE BASE PAY OF A MORRELL WORKER HAS FALLEN TO 860 AN HOUR FROM 1127 A DECADE AGO ACTIVE HOURLY WORKERS IN SIOUX FALLS WHERE MORRELL BEGAN BUTCHERING HOGS BY THE BIG SIOUX RIVER IN 1909 PAY DEDUCTIBLES COPAYMENTS AND PART OF PREMIUMS FOR THEIR HEALTH CARE MORRELL DECLINES TO BE INTERVIEWED SO DO OFFICIALS OF ITS PARENT COMPANY CHIQUITA BRANDS INTERNATIONAL INC OF CINCINNATI WHICH IS CONTROLLED BY CINCINNATI INVESTOR CARL LINDNER AND HIS AMERICAN FINANCIAL CORP MORRELL ANNOUNCED ITS PLANNED BENEFITS CHANGE IN A LETTER TO HOURLY RETIREES 14 MONTHS AGO THE COMPANY SAID THEY WOULD HAVE TO PAY MORE OF THE COST OF PRESCRIPTION DRUGS THE YEARLY DEDUCTIBLE WOULD INCREASE TO 300 FROM 200 PER PERSON A RETIREE'S MAXIMUM ANNUAL OUTOFPOCKET EXPENSES FOR COVERED EXPENSES WOULD RISE TO 1000 FROM 900 RETIREES WHO WERE UNDER AGE 65 AND THUS NOT COVERED BY MEDICARE WOULD ALSO PAY PREMIUMS OF 18 A MONTH FOR SINGLE COVERAGE AND 36 A MONTH FOR FAMILIES MORRELL BLAMED SURGING COSTS IT SAID ITS COST OF HEALTH CARE PER HOURLY RETIREE 1276 IN 1985 HAD MORE THAN DOUBLED BY 1990 OVERALL MORRELL'S MEDICAL COSTS JUMPED TO 20 MILLION FROM 14 MILLION IN THOSE FIVE YEARS WITH DRUGS ACCOUNTING FOR NEARLY A THIRD OF THE RISE THE CHANGES STILL LEFT THE RETIREES WITH WHAT THE COMPANY CALLED SOLID COMPREHENSIVE HEALTHCARE PROTECTION INDEED THE REVISIONS SHIFTED SOME COSTS TO THE RETIREES BUT LEFT INTACT BASIC COVERAGE FOR ITEMS SUCH AS SURGERY HOSPITALIZATION SICK VISITS TO DOCTORS HOSPICE AND VISION CARE COMBINED WITH MEDICARE THE FORMER MORRELL WORKERS WOULD STILL HAVE BENEFITS SUPERIOR TO THOSE OF MOST AMERICAN RETIREES SOME MORRELL RETIREES SAY THEY COULD HAVE LIVED WITH THE PROPOSED CHANGES EXCEPT FOR A JARRING SENTENCE AT THE END OF THE COMPANY'S MAILING TO THEM JOHN MORRELL & CO RESERVES THE RIGHT TO CHANGE OR TERMINATE ANY PLAN OR BENEFIT AT ANY TIME MR MCDONALD WHO WAS PRESIDENT OF THE UNION LOCAL FROM 1945 TO 1978 READS THAT TO MEAN THAT NEXT YEAR THEY'LL BE BACK FOR MORE WHEN MORRELL AND CHIQUITA ANNOUNCED THE PLANNED CHANGES IN LATE 1991 CHIQUITA WAS COMPLETING ITS EIGHTH STRAIGHT YEAR OF HIGHER PROFITS 1285 MILLION ON SALES OF 463 BILLION SINCE THEN HOWEVER CHIQUITA HAS INCURRED A 906 MILLION LOSS IN THE FIRST NINE MONTHS OF 1992 PARTLY BECAUSE OF HIGHER BANANA COSTS SEPARATE RESULTS FOR MORRELL ALONE WEREN'T AVAILABLE AS THE RETIREES WERE RECEIVING THEIR LETTERS MORRELL WAS SUING THEM AND THE UNION IN FEDERAL COURT THE IDEA WAS TO BEAT THE RETIREES TO COURT AND TO LIMIT THE PROCEEDINGS TO A SINGLE JURISDICTION OTHERWISE THE COMPANY ARGUED IN ITS SUIT IT COULD FACE A MULTIPLICITY OF LAWSUITS FROM THE RETIREES WHO ARE SCATTERED AROUND THE COUNTRY MORRELL ASKED THE JUDGE TO DECLARE THAT IT CAN MODIFY OR TERMINATE THE HEALTH BENEFITS OF ITS RETIRED HOURLY EMPLOYEES AT ANY TIME MORRELL'S LAWYERS MCDERMOTT WILL KNEW THAT THE EIGHTH FEDERAL JUDICIAL CIRCUIT OF WHICH SOUTH DAKOTA IS A PART HAS BEEN MORE FAVORABLE TO EMPLOYERS IN SUCH CASES THAN HAS ITS JUDICIAL COUNTERPART IN OHIO WHERE CHIQUITA IS BASED SUING IN SOUTH DAKOTA ALSO INCREASED THE CHANCES OF GETTING A PROBUSINESS JUDGE SAYS MICHAEL MELBINGER A MCDERMOTT WILL LAWYER WORKING ON THE MORRELL CASE THE LAWYERS BELIEVED THAT A SOUTH DAKOTA JUDGE EITHER WOULD GIVE THEM PERMISSION FOR THE RETIREEBENEFIT CHANGES OR GRANT A SECONDARY REQUEST TO ORDER THE UNION TO BARGAIN OVER SUCH CHANGES THE LAWYERS ALSO FIGURED THAT IF THE COURT ORDERED NEGOTIATIONS AND THE UNION DIDN'T BUDGE MORRELL COULD DECLARE AN IMPASSE AND IMPLEMENT THE CHANGES ON ITS OWN MORE THAN 200 RETIREES CROWDED THE BINGO MEETING AFTER THE BENEFIT CHANGES WERE ANNOUNCED AND THE LAWSUIT FILED MORRELL HAD INSISTED IN ITS LETTER THAT THE RETIREE BENEFITS STILL WERE BETTER THAN THOSE PROVIDED BY MANY OF ITS COMPETITORS THE CHANGES WE ARE MAKING WILL HELP US TO MANAGE THIS COMPETITIVE DISADVANTAGE WHILE CONTINUING TO OFFER STRONG PROTECTION IT SAID IN THE MAILING THAT DIDN'T MAKE THE RETIREES ANY HAPPIER BENARD ANING A FORMER PRESIDENT OF THE UNION LOCAL ASKED IF ANY RETIREE HAD HEARD THE COMPANY SAY THAT MEDICAL BENEFITS WERE SUBJECT TO CHANGE AS MORRELL SAYS IT TOLD EMPLOYEES IN EXIT INTERVIEWS UPON RETIREMENT NOT ONE RAISED THEIR HAND SAYS THE FORMER UNION LOCAL PRESIDENT US DISTRICT JUDGE RICHARD BATTEY CITING THE POTENTIAL OF IRREPARABLE HARM TO THE RETIREES ORDERED THE COMPANY NOT TO ACT UNTIL THE CASE IS DECIDED HE HEARD THE CASE LAST FALL IN RAPID CITY SD AT THE OCTOBER TRIAL CURRENT AND FORMER MORRELL OFFICIALS TESTIFIED THAT RETIREE BENEFITS WERE A MANAGEMENT PREROGATIVE SUBJECT TO CHANGE THERE WAS NEVER ANY CONSIDERATION OR PROMISE OR CONVERSATION THAT THEY WOULD REMAIN THAT WAY FOR THE REST OF THEIR LIFE SAID ROBERT GRAY A LABOR CONSULTANT FOR MORRELL HE ALSO SAID THAT WHILE PREVIOUS LABOR CONTRACTS STATED THAT THE COMPANY AND THE UNION MUST AGREE TO CHANGES IN RETIREE BENEFITS THE CURRENT CONTRACT HAS NO SUCH LANGUAGE UNION OFFICIALS COUNTERED IN COURT THAT WORKERS HAD BEEN PROMISED THE BENEFITS NOT ONLY IN EXIT INTERVIEWS BUT IN NEGOTIATIONS THROUGHOUT THE YEARS THE OFFICIALS SAID THEY EVEN ACCEPTED LESS PAY AS A TRADEOFF FOR BETTER RETIREE BENEFITS IT WOULD HAVE BEEN FOOLISH STUPID FOR US TO HAVE PAID FOR A BENEFIT KNOWING THAT THE COMPANY COULD TAKE IT BACK AT THEIR PLEASURE SOMETIME IN THE FUTURE MAINTAINED WILLIAM BURNS AN OFFICIAL FROM THE UNION'S WASHINGTON OFFICE A RETIREE'S WIDOW MARJORIE BOYD 72 YEARS OLD WAS EAGER TO TELL HER STORY TO JUDGE BATTEY LIVING ON SOCIAL SECURITY AND A MONTHLY MORRELL PENSION OF 225 SHE DIDN'T KNOW HOW SHE COULD AFFORD THE NEW COPAYMENTS FOR DRUGS TO TREAT HER DIABETES ARTHRITIS AND HEART CONDITION IN A VAN WITH OTHER RETIREES SHE HAD TRAVELED 348 MILES TO TESTIFY STOPPING ALONG THE WAY TO TAKE INSULIN BUT IN THE COURTROOM SHE FOUND THAT CASES INVOLVING RETIREE MEDICAL BENEFITS DEPEND MORE ON THE INTERPRETATION OF CONTRACTS AND BENEFITPLAN DOCUMENTS THAN ON STORIES OF PERSONAL HARDSHIP JUDGE BATTEY ACKNOWLEDGED THAT A LACK OF HEALTH BENEFITS AND RISING COSTS PRESENT A SEVERE PROBLEM FOR FOLKS WHO ARE IN THAT POSITION BUT WHEN MORRELL'S TRIAL ATTORNEY BILL BOIES OBJECTED TO AN EXHIBIT OF MRS BOYD'S DRUG PURCHASES AS IRRELEVANT THE JUDGE AGREED I CAN'T SAY ANY MORE MRS BOYD ASKED ACCORDING TO THE TRIAL TRANSCRIPT THERE'S NO QUESTION FOR YOU TO ANSWER MRS BOYD THE JUDGE REPLIED WELL THIS ISN'T IRRELEVANT SHE PERSISTED TELLING THE JUDGE SHE WAS THERE NOT JUST FOR HERSELF BUT HER LATE HUSBAND WILLIAM AND I HATE TO SEE HIM TURN OVER IN HIS GRAVE I DON'T KNOW HOW THIS CASE IS GOING TO WASH OUT JUDGE BATTEY SAID BUT IT'S NOT GOING TO WASH OUT BASED ON SYMPATHY BECAUSE IT'S GOING TO BE DECIDED UNDER THE RULE OF LAW WHICH I HAVE ALSO TAKEN AN OATH TO FOLLOW SO WITH THAT IN MIND MRS BOYD YOU ARE EXCUSED AT A RECENT MEETING OF THE BINGO CLUB RETIREES AND WIDOWS OF RETIREES SIT AROUND FOLDING TABLES IN THE BASEMENT OF THE LABOR TEMPLE THEY RECITE THE TRADE UNIONISTS' PLEDGE TO BUY UNIONMADE GOODS AND NOTE A LETTER FROM A LOCAL FOOD PANTRY THANKING THEM FOR THE DONATION OF FOOD AND 7 AND THEY PLAY GAME AFTER GAME OF BINGO CONTINUING UNTIL EVERYONE HAS WON AT LEAST ONE PACKAGE OF MORRELL LUNCH MEAT THEY ALSO HEAR MR ANING'S MONTHLY REPORT ON THE LITIGATION THE NEWS ON THIS COLD WINTER DAY IS THAT A DECISION HAS BEEN DELAYED AGAIN PROBABLY TILL LATE SPRING THAT'S FINE WITH GERRIT ZWAK THE BINGO CLUB'S PRESIDENT HE SAYS A PRESCRIPTION FOR HIS WIFE'S HEART DRUG COSTS 105 AND THE COMPANY WANTS RETIREES TO PAY 20 TO 30 OF THAT INSTEAD OF THE CURRENT 2 FLAT FEE WE'D BETTER BE THANKFUL EVERY DAY AND EVERY MONTH THAT WE CAN KEEP IT THE WAY IT IS MR ZWAK SAYS IN THEIR OFFICES IN A NEW SKYSCRAPER OVERLOOKING DOWNTOWN CHICAGO MORRELL'S LAWYERS TAKE A DIFFERENT VIEW WHEN A COMPANY PARES RETIREE BENEFITS IT'S FOLLOWING ITS OBLIGATIONS UNDER THE DOCUMENTS SAYS MR MELBINGER HE SAYS PROVIDING THE BENEFITS WAS A NICE THING FOR THE COMPANY TO DO BUT I DON'T BELIEVE IT'S WHY YOU WERE THERE THE ALTERNATIVE ADDS MR BOIES MAY BE A BANKRUPT COMPANY AND NO COVERAGE MR MELBINGER SAYS THAT IF CHIQUITA GETS A FAVORABLE DECISION FROM THE JUDGE IT MIGHT SEEK LARGER CUTS THERE'S LITTLE DOUBT OTHER COMPANIES WILL CONTINUE TO SEEK WAYS TO CUT RETIREE BENEFITS AS WELL GEORGE WAGONER OF THE WILLIAM M MERCER CONSULTING FIRM PREDICTS A SECOND WAVE OF CUTBACKS LATER THIS YEAR AS COMPANIES SEEK TO MATCH THE COSTCUTTING OF COMPETITORS THEN ANOTHER ROUND IS LIKELY BY 1995 WHEN SMALLER EMPLOYERS HAVE TO FOLLOW THE NEW ACCOUNTING RULES ON RETIREE COSTS THAT MAJOR COMPANIES HAD TO ADOPT THIS YEAR TO SMOOTH THE WAY CONSULTANTS AND LAWYERS TELL EMPLOYERS TO CLEARLY STATE IN WRITING THAT RETIREMENT BENEFITS ARE SUBJECT TO CHANGE OR ELIMINATION MR MELBINGER OF MCDERMOTT WILL SAYS THE LAW FIRM IS ADVISING COMPANIES TO SPEED UP THEIR DECISIONS THE FIRM FEARS THAT PUBLICITY OVER CUTBACKS MIGHT PROMPT CONGRESS TO TRY TO REQUIRE VESTING OF RETIREE MEDICAL BENEFITS MUCH AS CURRENT LAW SEEKS TO ENFORCE SOME PENSION PROMISES 9302240040 930224 BUSINESS BRIEF BRITISH COLUMBIA TELEPHONE CO REORGANIZATION OF BUSINESSES IS APPROVED BY FIRM'S BOARD BRITISH COLUMBIA TELEPHONE CO VANCOUVER BRITISH COLUMBIA SAID ITS BOARD APPROVED A REORGANIZATION OF ITS BUSINESSES TO SEPARATE REGULATED TELECOMMUNICATIONS SERVICES AND SYSTEMS FROM OTHER LARGELY NONREGULATED SUBSIDIARIES IF APPROVED BY SHAREHOLDERS AND THE COURTS THE REORGANIZATION WOULD CREATE A NEW HOLDING COMPANY BC TELECOM INC WHICH WOULD OWN THE REGULATED AND UNREGULATED BUSINESSES IN TWO SEPARATE OPERATING DIVISIONS COMMON SHAREHOLDERS WOULD OWN SHARES IN THE NEW HOLDING COMPANY WHILE OTHER INVESTORS SUCH AS PREFERRED SHAREHOLDERS WOULD RETAIN AN INTEREST IN THE REGULATED TELEPHONE UTILITY HOLDERS WILL VOTE ON THE PROPOSAL AT THE APRIL 15 ANNUAL MEETING IF APPROVED THE PLAN WILL TAKE EFFECT MAY 1 THE COMPANY SAID THE DIVISION WOULD ALLOW SUBSIDIARIES DIRECT ACCESS TO CAPITAL MARKETS AND WOULD ALLOW GREATER MANAGEMENT FLEXIBILITY BC TELEPHONE IS 503 CONTROLLED BY GTE CORP OF STAMFORD CONN 9302240039 930224 BUSINESS BRIEF WESTVACO CORP NET INCOME DECLINED 23 IN THE FISCAL FIRST QUARTER WESTVACO CORP NEW YORK REPORTED A 23 DROP IN FISCAL FIRSTQUARTER EARNINGS CITING WEAKER PRICES AND LOWER DEMAND IN OVERSEAS MARKETS THE PAPER PRODUCTS COMPANY SAID NET INCOME FOR THE QUARTER ENDED JAN 31 FELL TO 209 MILLION OR 31 CENTS A SHARE FROM 271 MILLION OR 41 CENTS A SHARE A YEAR EARLIER REVENUE EDGED UP 4 TO 5611 MILLION FROM 5398 MILLION JOHN A LUKE JR PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE INDUSTRY'S RECOVERY WILL LAG THE ECONOMY BECAUSE EXCESS CAPACITY IN THE US WILL TAKE LONGER TO BE ABSORBED AND OVERSEAS MARKETS REMAIN TROUBLED NEVERTHELESS THE PAPER PRODUCTS COMPANY SAID CAPITAL OUTLAYS FOR THIS YEAR WILL JUMP 36 TO 475 MILLION FROM 350 MILLION LARGELY TO COMPLETE PROJECTS SUCH AS THE INSTALLATION OF BLEACHED PAPERBOARD EQUIPMENT AT ITS COVINGTON VA MILL IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WESTVACO SHARES FELL 375 CENTS TO 35875 9302240038 930224 INSIDE TRACK INSIDERS AT TWO HOT RESTAURANT CHAINS CASHED IN SOME STOCK BEFORE IT COOLED BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INSIDERS AT TWO RESTAURANT CHAINS THAT WERE SIZZLING HOT LAST YEAR HEADED FOR THE EXITS BEFORE RECENT STOCKPRICE SLIDES FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THREE INSIDERS TRIMMED THEIR HOLDINGS IN STARBUCKS CORP A SEATTLE COMPANY THAT OPERATES 171 SPECIALTY COFFEE BARS IN DECEMBER AND JANUARY AND AT CHECKERS DRIVEIN RESTAURANTS INC THE PRESIDENT HAS SLASHED HIS HOLDINGS BY 227 MILLION SINCE LATE NOVEMBER THE FILINGS SHOW BOTH COMPANIES HAVE SHOWN RAPID SALES GROWTH A DIZZYING PACE OF EXPANSION AND HAD INITIAL PUBLIC OFFERINGS THAT TOOK OFF STARBUCKS WHICH DOES 80 OF ITS BUSINESS IN THE SALE OF HOT BEVERAGES AND COFFEE BEANS HAS BEEN ONE OF THE FASTESTGROWING COMPANIES IN THE NATION SINCE 1988 ANNUAL SALES HAVE SOARED NINEFOLD ITS STOCK MARKET PERFORMANCE WAS ALSO STRONG STARBUCKS WENT PUBLIC LAST JUNE AT 17 A SHARE AND ITS PRICE HAD MORE THAN DOUBLED TO 4225 BY LAST MONTH BUT DURING THE PAST FEW WEEKS STARBUCKS SHARES HAVE BEEN EDGING LOWER CLOSING YESTERDAY AT 33 DOWN 875 CENTS IN OVERTHECOUNTER TRADING LAWRENCE MALTZ SENIOR VICE PRESIDENT FOR NEWPRODUCT DEVELOPMENT SOLD 43 OF HIS STARBUCKS SHARES IN JANUARY AT 37 TO 3811 A SHARE ACCORDING TO SEC FILINGS IN TOTAL HE SOLD 49960 SHARES SEC FILINGS SHOW TWO OTHER STARBUCKS INSIDERS SOLD A TOTAL OF 15000 SHARES ON DEC 3 AND JAN 25 ACCORDING TO SEC FILINGS MR MALTZ WASN'T AVAILABLE FOR COMMENT BUT G SCOTT GREENBURG STARBUCKS' CORPORATE SECRETARY AND GENERAL COUNSEL SAID EXECUTIVES AT STARBUCKS WEREN'T PAID MUCH DURING THE EARLY YEARS OF THE COMPANY'S GROWTH PERIOD MR MALTZ IN PARTICULAR HAD DEFERRED INCOME FOR A NUMBER OF YEARS IN THE HOPES THAT THE COMPANY WOULD BE AS SUCCESSFUL AS IT HAS BEEN HE SAID FOR THE FISCAL YEAR ENDED SEPT 30 STARBUCKS' NET INCOME ROSE 71 TO 41 MILLION OR 33 CENTS A SHARE ANALYSTS EXPECT THE COMPANY TO EARN ABOUT 50 CENTS A SHARE THIS FISCAL YEAR STARBUCKS HAS SHOWN A HEFTY EARNINGS GROWTH RATE WITH REVENUE FROM DIRECTMAIL SALES UP 170 IN THE FIRST QUARTER ALONE BUT THE RATIO OF ITS STOCK PRICE TO ITS EXPECTED 1993 EARNINGS IS A HEFTY 66 THAT'S WAY ABOVE THE AVERAGE EARNINGS MULTIPLE OF STANDARD & POOR'S 500 STOCK INDEX WHICH IS ABOUT 24 AT 85 CENTS FOR A CUP OF COFFEE STARBUCKS IS CHARGING ABOVE AVERAGE BUT ITS A VERY AFFORDABLE LUXURY SAYS CHRIS VROOM ANALYST AT ALEX BROWN & SONS INC WHICH TOOK THE COMPANY PUBLIC MR GREENBURG SAYS THE COMPANY'S RAPID EXPANSION PACE CONTINUES AND STARBUCKS HAS BEEN VERY PLEASED WITH THE RESULTS OF RECENT STORE OPENINGS IN DENVER TEN MORE OUTLETS ARE SCHEDULED TO OPEN IN WASHINGTON DC THIS SPRING THE INSIDER SELLER AT CHECKERS DRIVEIN RESTAURANTS WAS JAMES H MATTEI COMPANY PRESIDENT HE SOLD 30 OF HIS STOCK 1050000 SHARES SINCE LATE NOVEMBER SEC FILINGS SHOW CHECKERS OPERATES 223 FASTFOOD OUTLETS MOSTLY IN THE SOUTH SERVING 99CENT HAMBURGERS THROUGH DOUBLE DRIVETHROUGH WINDOWS THE CHAIN HAS ALMOST DOUBLED IN SIZE FROM THE 117 LOCATIONS AT THE END OF 1991 AND PLANS TO OPEN ANOTHER 155 RESTAURANTS NEXT YEAR SOME OF THEM IN THE HOUSTON MARKET CHECKERS OWNS ABOUT 40 OF THE LOCATIONS THE REMAINDER ARE FRANCHISES THE COMPANY WENT PUBLIC AT AN ADJUSTED 534 A SHARE IN DEC 1991 HAS SPLIT TWICE HAD A SECONDARY SHARE OFFERING IN MAY 1992 AND HAS TRADED AS HIGH AS 26 BUT LATELY A WEAKENING RESTAURANT SECTOR RUMORS DENIED BY THE COMPANY THAT CHECKERS MIGHT ISSUE MORE STOCK SOON AND CONCERNS ABOUT OVERHEATED IPOS HAVE SENT ITS SHARES LOWER IN OVERTHECOUNTER TRADING YESTERDAY CHECKERS SHARES CLOSED AT 1725 EACH OFF 75 CENTS MR MATTEI SOLD HIS STOCK IN 56 SEPARATE SALES SINCE NOV 24 AT SHARE PRICES RANGING FROM 1950 TO 2525 SEC FILINGS SHOW MR MATTEI COULDN'T BE REACHED FOR COMMENT BUT N JOHN SIMMONS JR CHECKERS'S CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE SAID MR MATTEI SOLD MOST OF THE SHARES LATE LAST YEAR BECAUSE OF CONCERNS THAT TAX RATES WOULD RISE IN 1993 AS FOR THE STOCK'S DECLINE HE SAYS THE VAGARIES OF THE STOCK MARKET NOT ANY PROBLEMS AT CHECKERS ARE TO BLAME WE'VE HAD NOTHING BUT GOOD NEWS AND THE COMPANY IS COMFORTABLE WITH ANALYSTS' 1993 EARNINGS ESTIMATES OF ABOUT 54 CENTS A SHARE MR SIMMONS ADDS FOR THE FOURTH QUARTER CHECKERS REPORTED NET INCOME OF 31 MILLION OR 11 CENTS A SHARE UP FROM 14 MILLION OR SIX CENTS THE YEAR EARLIER REVENUE ALMOST DOUBLED TO 289 MILLION FROM 148 MILLION 9302240037 930224 POLITICS & POLICY WITH ITS HIGHEST POSITIONS YET UNFILLED JUSTICE DEPARTMENT REMAINS IN DISARRAY BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STUART GERSON THE BUSH ADMINISTRATION HOLDOVER WHO IS ACTING ATTORNEY GENERAL INFORMS ANYONE WHO ASKS THAT I AM IN CHARGE BUT RECENT EVENTS MIGHT SUGGEST THAT NO ONE IS THOUGH THE DAYTODAY OPERATIONS OF THE JUSTICE DEPARTMENT CONTINUE THE CLINTON ADMINISTRATION'S FAILURE TO INSTALL AN ATTORNEY GENERAL MORE THAN A MONTH AFTER ASSUMING POWER PLUS THE ABSENCE OF TOP AGENCY APPOINTEES APPEARS TO HAVE RENDERED THE DEPARTMENT RUDDERLESS IN MATTERS SUCH AS THE BUDGET THE CRIME BILL AND THE CONTROVERSY SURROUNDING THE FBI DIRECTOR THE DEPARTMENT AWAITS DIRECTION FROM A STILLEMPTY ATTORNEY GENERAL'S OFFICE MR GERSON CHOSE TO REMAIN IN THE DEPARTMENT'S CIVIL DIVISION OFFICE WHICH HE OCCUPIED UNDER MR BUSH THE LATEST FLAP IS OVER MR GERSON'S DECISION TO HAVE FEDERAL PROSECUTORS IN TENNESSEE REVERSE THEIR POSITION AND AGREE TO ASK A COURT TO ALLOW NEW JURY SELECTION IN THE RETRIAL OF REP HAROLD FORD THE MEMPHIS DEMOCRAT FACES 19 COUNTS OF BANK AND WIRE FRAUD IN A 1987 INDICTMENT THAT ACCUSES HIM OF TAKING 12 MILLION IN IMPROPER PAYMENTS FROM BANKS CONTROLLED BY JAKE AND CH BUTCHER TWO KNOXVILLE BROTHERS WHO HAVE BEEN CONVICTED IN CONNECTION WITH BANK FAILURES MR FORD'S FIRST TRIAL RESULTED IN A HUNG JURY EIGHT BLACK JURORS VOTED FOR ACQUITTAL AND FOUR WHITE JURORS VOTED FOR A CONVICTION LITERALLY WAITING UNTIL THE 11TH HOUR MR GERSON ISSUED AN 1139 PM STATEMENT FRIDAY ANNOUNCING THAT HE HAD AGREED TO A CONGRESSIONAL BLACK CAUCUS REQUEST FOR THE DEPARTMENT TO ASK THE COURT TO ALLOW NEW JURY SELECTION FOR THE RETRIAL THE CAUCUS REQUESTED ITS MEETING WITH MR GERSON THROUGH WEBSTER HUBBELL WHO SERVES AS THE DEPARTMENT'S LIAISON TO THE WHITE HOUSE MR HUBBELL IS A CLOSE FRIEND OF THE PRESIDENT'S AND IS HILLARY RODHAM CLINTON'S FORMER LAW PARTNER HIS PARTICIPATION IN THAT SESSION AND A LATER ONE FRIDAY IN WASHINGTON WITH PROSECUTORS FROM TENNESSEE LED SOME DEPARTMENT OFFICIALS TO COMPLAIN THAT THE WHITE HOUSE HAD INTERVENED THE IMPRESSION THAT EVERYBODY HAS WHETHER IT IS TRUE OR NOT IS THIS FLIPFLOP ON THE FORD CASE IS THE RESULT OF WHITE HOUSE INTERVENTION SAID A DEPARTMENT LAWYER WHAT THE CAREER PROSECUTORS DON'T LIKE IS DECISIONS BEING MADE FOR POLITICAL REASONS WHAT THIS WHOLE THING LOOKS LIKE IS A POLITICAL DECISION HOWEVER A DEPARTMENT SPOKESWOMAN SAID THE WHITE HOUSE WASN'T INFORMED OF MR GERSON'S DECISION UNTIL IT HAD BEEN ANNOUNCED PUBLICLY THE RETRIAL NOW SET FOR NEXT MONDAY WAS TO HAVE BEGUN LAST MONDAY IN MEMPHIS BUT WITH A JURY DRAWN FROM AN ADJACENT LARGELY WHITE JURISDICTION FEDERAL PROSECUTORS HAD ARGUED SUCCESSFULLY THAT MR FORD'S INFLAMMATORY RHETORIC POISONED THE WELL FOR UNBIASED JURORS AND THE JUDGE AGREED TO SELECT A JURY FROM OUTSIDE THE MEMPHIS AREA MR GERSON A REPUBLICAN WHO CLAIMS TO BE TO THE RIGHT OF MODERATE SAID IN HIS FRIDAY STATEMENT I AM NOT WILLING TO SAY ON BEHALF OF THE UNITED STATES THAT JUSTICE CANNOT BE OBTAINED FROM A MEMPHIS JURY HIS DECISION SO OUTRAGED PROSECUTORS IN TENNESSEE THAT THE US ATTORNEY IN MEMPHIS ED BRYANT RESIGNED AND TWO OTHER DEPARTMENT LAWYERS ASKED TO BE TAKEN OFF THE CASE AS FOR DEPARTMENT MORALE FOLLOWING MR GERSON'S DECISION IT STINKS SAID ONE ATTORNEY IT'S TERRIBLE TO ADD TO THE CONFUSION MR GERSON DECIDED YESTERDAY TO ABANDON HIS SUPPORT OF MR FORD'S ATTEMPT TO HAVE THE NEW JURY 11 WHITES AND ONE BLACK DISMISSED IN WHAT AMOUNTS TO A DOUBLE REVERSE THE DEPARTMENT NOW IS OPPOSING MR FORD'S APPEAL TO THE APPELLATE COURT TO OVERTURN THE LOWERCOURT'S DISMISSAL OF HIS MOTION TO HAVE THE JURY DISMISSED IT SOUNDS LIKE THE DEPARTMENT IS REVERSING ITSELF BUT IT'S NOT SAID FRANK SHULTS A DEPARTMENT SPOKESMAN IN WASHINGTON WHO EXPLAINED THAT YESTERDAY'S ACTION WAS BASED ON THE BELIEF THAT IT IS IMPROPER FOR THE APPELLATE COURT TO FORCE THE DISTRICT COURT TO CHANGE ITS DECISION EVEN THOUGH THE JUSTICE DEPARTMENT OBJECTED TO THAT DECISION THE DEPARTMENT ALSO LACKS DIRECTION ON ISSUES OF POLICY MANY AGENCIES GET OFF TO A SLOW START FOLLOWING SHIFTS IN ADMINISTRATIONS BUT THE JUSTICE DEPARTMENT IS FALLING EVEN FURTHER BEHIND OTHER AGENCIES BECAUSE THE PEOPLE CHARGED WITH GENERATING POLICY SIMPLY AREN'T THERE AND THE CONFIRMATION HEARING FOR ATTORNEY GENERALDESIGNATE JANET RENO PROBABLY WON'T BE HELD UNTIL THE SECOND WEEK OF MARCH THE ABSENCE OF AN ATTORNEY GENERAL AND OF THE POLICY DIRECTION PROVIDED BY POLITICAL APPOINTEES WAS REFLECTED IN THE PAUCITY OF INFORMATION THE DEPARTMENT FURNISHED ON ITS BUDGET PROPOSALS LAST WEEK IT ISSUED A SPARSE ONEPAGE STATEMENT THAT LISTED THREE INITIATIVES ALL OF WHICH HAD ALREADY BEEN PROPOSED THERE WAS LITTLE INDICATION OF ANY CHANGE IN PRIORITIES MEANWHILE OTHER AGENCIES HELD NEWS BRIEFINGS TO DISCUSS THEIR SPENDING PLANS MR GERSON WOULDN'T COMMENT YESTERDAY BUT IN EARLIER INTERVIEWS HE HAS INSISTED THE DEPARTMENT IS RUNNING WELL AND CHRISTINE MILLIKEN DIRECTOR OF THE NATIONAL ASSOCIATION OF ATTORNEYS GENERAL SAYS HER GROUP HASN'T HAD ANY PROBLEMS WITH DEPARTMENT ACTION ON A SUPREME COURT CASE INVOLVING HATE CRIMES BUT THE CLINTON ADMINISTRATION HASN'T MOVED TO RESOLVE THE LEADERSHIP CRISIS AT THE FEDERAL BUREAU OF INVESTIGATION FBI DIRECTOR WILLIAM SESSIONS IS FIGHTING ETHICS CHARGES LODGED BY FORMER ATTORNEY GENERAL WILLIAM BARR CONFIDENCE IN MR SESSIONS'S LEADERSHIP HAS ERODED AND HIS FUTURE IN THE BUREAU IS UNCLEAR BUT UNTIL A NEW ATTORNEY GENERAL IS IN PLACE TO HELP ADVISE THE PRESIDENT THE TURMOIL WILL CONTINUE THE WHITE HOUSE ALSO HAS BEEN UNABLE TO SUBMIT ITS VERSION OF A CRIME BILL TO CONGRESS IT WAS EXPECTED EARLIER THIS MONTH BUT WITHOUT AN ATTORNEY GENERAL TO LEAD THE WAY THE LEGISLATION REMAINS STALLED CLEARLY THE LACK OF AN ATTORNEY GENERAL AND OTHER PEOPLE APPOINTED TO TOP POSITIONS BY THE NEW ADMINISTRATION IS CREATING A POLICY GULF ON A LOT OF ISSUES SAID ROBERT EVANS DIRECTOR OF THE AMERICAN BAR ASSOCIATION'S WASHINGTON OFFICE 9302240036 930224 SHAWMUT OFFERS MUTUAL FUNDS HARTFORD CONN SHAWMUT NATIONAL CORP SAID IT INTRODUCED A FAMILY OF SEVEN MUTUAL FUNDS THE FUNDS WILL BE AVAILABLE THROUGH SHAWMUT'S 311 BRANCHES IN MASSACHUSETTS CONNECTICUT AND RHODE ISLAND THE BANK HOLDING COMPANY SAID OUR LONGTERM STRATEGY IS TO OFFER A MORE COMPLETE LINE OF INVESTMENT PRODUCTS AND TO CAPITALIZE ON OUR SUPERB DISTRIBUTION CAPABILITIES MICHAEL J ROTHMEIER EXECUTIVE VICE PRESIDENT SAID MUTUAL FUNDS WILL FILL WHAT IS CURRENTLY THE LARGEST GAP IN OUR INVESTMENT SERVICES PRODUCT LINE SHAWMUT ADDED THAT IN DECEMBER IT CONVERTED CERTAIN COLLECTIVE INVESTMENT TRUSTS INTO MUTUAL FUNDS THUS ITS NEW MUTUAL FUNDS CURRENTLY HAVE 600 MILLION UNDER MANAGEMENT 9302240035 930224 FOOD LION IS SUING FOOD WORKERS UNION ALLEGING SMEAR EFFORT SALISBURY NC FOOD LION INC IS SUING THE UNITED FOOD & COMMERCIAL WORKERS INTERNATIONAL UNION ALLEGING THAT THE LABOR GROUP HAS WAGED A SMEAR CAMPAIGN AGAINST THE SUPERMARKET CHAIN IN AN ATTEMPT TO UNIONIZE IT THE LAWSUIT FILED IN CIRCUIT COURT IN GREENVILLE SC CHARGES ABUSE OF PROCESS AND SEEKS ACTUAL AND PUNITIVE DAMAGES NO DOLLAR AMOUNT WAS SPECIFIED THE UNION IN A PREPARED STATEMENT CHARACTERIZED THE ACTION AS AN ATTEMPT BY FOOD LION TO DRAW ATTENTION AWAY FROM ITS DISASTROUS FOURTH QUARTER AND THE CONSEQUENCES OF BAD MANAGEMENT FOOD LION FIRST COMMENTED ON THE SUIT WHICH WAS FILED FEB 12 AFTER THE UNION PUBLISHED ITS OWN REACTION COMPANY OFFICIALS SAID THE FILING WASN'T ANNOUNCED PUBLICLY BECAUSE FOOD LION DIDN'T WANT TO DRAW ATTENTION TO IT WE JUST DO NOT WANT TO TRY A CASE IN THE MEDIA SAID A COMPANY SPOKESMAN THE MEDIA'S NOT THE PROPER FORUM FOR THIS FOOD LION OFFICIALS SAID THE UFCW HAS USED ECONOMIC GUERRILLA TACTICS TO TARNISH THE RETAILER'S IMAGE AND HAS FILED FRIVOLOUS LAWSUITS AGAINST THE CHAIN THUS THE CHARGE OF ABUSE OF PROCESS TO LEARN MORE ABOUT THE COMPANY IN AN ATTEMPT TO UNIONIZE IT FOOD LION HAS BEEN BUFFETED SINCE NOVEMBER WHEN ABC'S PRIMETIME LIVE AIRED A REPORT CHARGING THAT THE COMPANY REPACKAGED OUTOFDATE MEAT AND HAD UNSANITARY FOODHANDLING PRACTICES FOOD LION DENIED THE ALLEGATIONS CLAIMING THEY WERE PART OF A UNION CAMPAIGN TO HURT THE COMPANY AND TO ENCOURAGE THE CHAIN'S EMPLOYEES TO UNIONIZE IN ITS FOURTH QUARTER ENDED JAN 2 FOOD LION'S PROFIT FELL 55 TO 273 MILLION OR SIX CENTS A SHARE FROM 608 MILLION OR 13 CENTS A SHARE A YEAR EARLIER SAMESTORE SALES DROPPED 38 AND THE COMPANY CUT ITS QUARTERLY DIVIDEND TO ABOUT 22 CENTS A SHARE FROM ABOUT 28 CENTS THE LAWSUIT IS THE SECOND FILED IN CONNECTION WITH THE ABC BROADCAST FOOD LION HAS ALREADY FILED SUIT AGAINST ABC A UNIT OF CAPITAL CITIES/ABC INC CHARGING THE NETWORK WITH FRAUD 9302240034 930224 AUTOS SUBARU HAS A LOT RIDING ON ITS IMPREZA BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL SUBARU OF AMERICA INC WAS ONE OF THE HOTTEST CAR COMPANIES IN THE US BEFORE AN ILLFATED MOVE UPSCALE IN THE LATE 1980S NOW SUBARU SAYS ITS NEW IMPREZA SMALL SEDAN WILL TRY TO RECAPTURE THE OLD MAGIC BUT CONSUMERS LOOKING FOR A RETURN OF THE CHEAP SUBARU WILL FIND THE WELLEQUIPPED IMPREZAS PRICEY COMPARED WITH THE BARGAINS OF YORE AND RIVAL SUBCOMPACTS A FRONTWHEELDRIVE IMPREZA WITH AN AIR BAG ANTILOCK BRAKES AND AUTOMATIC TRANSMISSION STARTS AT 15699 THAT'S 916 MORE THAN TOYOTA MOTOR CORP'S SIMILARLY EQUIPPED COROLLA DX SEDAN WHICH SPORTS A MORE POWERFUL ENGINE CLEARLY SUBARU BASED IN CHERRY HILL NJ AND ITS STRUGGLING JAPANESE PARENT FUJI HEAVY INDUSTRIES LTD NEED A HIT WITH THE IMPREZA WHICH IS SCHEDULED TO MAKE ITS DEBUT MARCH 1 AS A REPLACEMENT FOR THE EIGHTYEAROLD LOYALE MODEL THE COMPANY IS PUTTING HALF OF ITS 100 MILLION ADVERTISING BUDGET BEHIND THE CAR'S LAUNCH MORE THAN IT HAS EVER SPENT ON A PRODUCT INTRODUCTION SUBARU PAID TOP DOLLAR TO RUN SIX IMPREZA ADS DURING LAST MONTH'S SUPER BOWL GAME AND SOON WILL OFFER CONSUMERS IN 10 CITIES A CHANCE TO DRIVE AN IMPREZA IN A COMPARISON TEST AGAINST THE COROLLA AND HONDA MOTOR CO'S CIVIC DEALERS AND SALESPEOPLE WILL GET INTENSIVE TRAINING TO SELL THE NEW MODEL SUBARU'S GOAL IS TO RECAPTURE THE LUSTER IT ENJOYED IN THE EARLY AND MID1980S WHEN ITS RELIABLE INEXPENSIVE ALLWHEELDRIVE SUBCOMPACTS MADE IT AN INDUSTRY DARLING IN 1986 SUBARU SALES REACHED 183242 VEHICLES WHICH EMBOLDENED FUJI TO BUILD A FACTORY IN INDIANA WITH ISUZU MOTORS LTD FUJI BOUGHT 100 OWNERSHIP OF SUBARU IN 1990 BUT BY THEN SUBARU WAS IN A SKID IN 1989 SUBARU HAD LAUNCHED A NEW LINE OF LARGER MORE EXPENSIVE CARS UNDER THE LEGACY NAME AND IT TRIED TO REPOSITION ITSELF AS AN ALTERNATIVE FOR WELLHEELED BUYERS WHO WERE SNAPPING UP HONDA ACCORDS AND TOYOTA CAMRYS THE UPMARKET PRICING STRATEGY MUDDIED SUBARU'S UTILITARIAN IMAGE STARTING A SALES SLIDE THE COMPANY HASN'T BEEN ABLE TO HALT WE DIDN'T HAVE A STRONG COMPETITOR IN THE MARKET WHERE PEOPLE EXPECTED SUBARU TO BE THE STRONGEST CONCEDES GEORGE MULLER SUBARU EXECUTIVE VICE PRESIDENT AS A RESULT SUBARU SALES LAST YEAR FELL TO 104800 CARS DOWN 43 FROM THE 1986 PEAK ITS SHARE OF THE US CAR MARKET DROPPED TO 13 LAST YEAR FROM 16 IN 1986 NOW CHASTENED SUBARU EXECUTIVES SAY THEY WANT TO GET BACK TO THE OLD SUCCESS FORMULA SUBARU'S STRENGTH EXISTED WHEN WE HAD A COMPETITIVE SUBCOMPACT SAYS A SPOKESMAN THE IMPREZA IS A RETURN TO OUR ROOTS INDUSTRY ANALYSTS SAY THE IMPREZA IS THE STRONGEST SMALLCAR CONTENDER SUBARU HAS FIELDED IN A DECADE THE IMPREZA IS A NICELY STYLED SMALL CAR THAT'S EXTREMELY WELL REFINED AND EXECUTED SAYS CHRISTOPHER CEDERGREN AN AUTO ANALYST WITH AUTOPACIFIC GROUP AN INDUSTRY CONSULTING FIRM IT'S IN A LEAGUE WITH THE COROLLA AND CIVIC THE SLEEK AND CURVY IMPREZA IS A BIG STEP UP FROM ITS BOXY AGED PREDECESSOR IT'S NEARLY A FOOT WIDER THAN THE LOYALE AND HAS MORE LEGROOM AND HEADROOM THE IMPREZA'S FOURCYLINDER ENGINE IS RATED AT 110 HORSEPOWER VS JUST 90 FOR THE LOYALE ALL IMPREZAS COME WITH A DRIVERSIDE AIR BAG A FEATURE THE LOYALE LACKED BUT THE CHEAPEST 1993 IMPREZA WITH FRONTWHEEL DRIVE STANDARD TRANSMISSION AND NO AIR CONDITIONING IS 10999 A 37 INCREASE FROM THE LEAST EXPENSIVE LOYALE SUBARU OFFICIALS SAY THEY EXPECT ONE OF THE BESTSELLING IMPREZAS TO BE THE FRONTDRIVE L SEDAN THAT STARTS AT 11499 ALLWHEELDRIVE IMPREZAS START AT 14499 AND RANGE AS HIGH AS 17599 FOR A LOADED LS WAGON MR MULLER SAYS THE PRICING IS COMPETITIVE BECAUSE WE'RE GIVING PEOPLE A STATEOFTHEART VEHICLE BUT THE IMPREZA WILL BE GRAPPLING FOR SALES IN A SLUGGISH MARKET AMONG SOME BETTERKNOWN SMALL CARS SALES OF NISSAN MOTOR CO'S SENTRA ARE DOWN SO FAR THIS YEAR WHILE THOSE OF FORD MOTOR CO'S ESCORT AND THE COROLLA ARE UP ONLY SLIGHTLY MANY AUTO MAKERS ARE OFFERING DISCOUNTS TO SPUR SALES OF THEIR SMALL CARS NEVERTHELESS SUBARU EXECUTIVES SAY THEY EXPECT TO SELL 60000 IMPREZAS ANNUALLY COMPARED WITH JUST 33087 LOYALES LAST YEAR THUS THE IMPREZA IS KEY TO THE COMPANY'S GOAL OF IMPROVING OVERALL SALES TO 130000 CARS ANNUALLY IN THE NEXT TWO OR THREE YEARS AND ULTIMATELY RETURNING TO THE LEVELS REACHED IN THE MID1980S 9302240033 930224 FINANCING BUSINESS GLENFED INC GLENFED INC GLENDALE CALIF SAID ITS GLENDALE FEDERAL BANK UNIT AMENDED ITS JAN 27 EXCHANGE OFFER FOR ITS PUBLICLY TRADED 14 7/8 SUBORDINATED CAPITAL NOTES DUE IN 1997 THE AMENDED OFFER SWEETENS THE DEAL FOR NOTE HOLDERS ALLOWING THEM TO ACQUIRE EQUITY MORE EASILY THAN UNDER PREVIOUS TERMS GLENDALE SAID THE AMENDED OFFER HAD THE APPROVAL OF MORE THAN 80 OF NOTE HOLDERS THE AMENDED EXCHANGE OFFER WILL EXPIRE MARCH 8 9302240032 930224 BUSINESS BRIEF WALMART STORES HAD RECORD PROFIT SALES FOR 4TH QUARTER YEAR BENTONVILLE ARK WALMART STORES INC SAID ITS FOURTHQUARTER NET INCOME JUMPED 24 ON A 25 SALES GAIN AS THE RETAIL GIANT POSTED RECORD PROFIT AND SALES FOR THE QUARTER AND YEAR IN THE PERIOD ENDED JAN 31 THE NET WAS 7496 MILLION OR 65 CENTS A SHARE COMPARED WITH 6024 MILLION OR 52 CENTS A SHARE SALES GREW TO 1712 BILLION FROM 1364 BILLION A YEAR EARLIER FOR THE YEAR WALMART NET ROSE 24 TO 199 BILLION OR 174 A SHARE FROM 161 BILLION OR 140 A SHARE SALES FOR THE YEAR ROSE 26 TO 5548 BILLION FROM 4389 BILLION THOUGH THE QUARTER AND YEAREND RESULTS WERE IN LINE WITH ANALYSTS' PROJECTIONS WALMART COMMON SHARES SLIPPED 875 CENTS TO 59875 IN NEW YORK STOCK EXCHANGE TRADING ANALYSTS VARIOUSLY ATTRIBUTED THE REACTION TO EITHER FEAR OF NEW TAX POLICIES FROM WASHINGTON OR TO WORD FROM THE COMPANY IN A CONFERENCE CALL WITH ANALYSTS THAT FEBRUARY SALES IN STORES OPEN AT LEAST A YEAR WILL BE UP 68 BELOW THE 11 GROWTH THAT THE COMPANY POSTED FOR THE YEAR ENDED JAN 31 THE PREVIOUS FEBRUARY RESULTS HOWEVER INCLUDED AN ADDITIONAL SATURDAY AND SALES THIS MONTH HAVE BEEN DEPRESSED BY BAD WEATHER IN MUCH OF THE COUNTRY DAVID PONEMAN AN ANALYST AT SANFORD C BERNSTEIN SAID EXPECTATIONS FOR WALMART ARE ABSURDLY HIGH HE POINTED OUT THAT THE RETAILER'S GROWTH IN STORE FOOTAGE REVENUE AND EARNINGS LAST YEAR WERE ROUGHLY EQUIVALENT TO BUILDING AN ENTIRE COMPANY THE SIZE OF TOYS R US FROM SCRATCH THE COMPANY OPENED 76 NEW WALMART STORES AND 13 SAM'S CLUB WAREHOUSE STORES IN THE QUARTER FOR THE YEAR THE COMPANY ADDED A NET 160 WALMART STORES AND 48 NEW SAM'S CLUBS WITH A TOTAL OF 40 MILLION SQUARE FEET OF RETAIL STORE SPACE DAVID PONEMAN AN ANALYST AT SANFORD C BERNSTEIN SAID ANALYSTS' EARNINGS EXPECTATIONS FOR WALMART STORES INC WERE EXTREMELY HIGH RATHER THAN ABSURDLY HIGH AS REPORTED IN AN ARTICLE YESTERDAY ABOUT THE COMPANY'S FOURTHQUARTER PROFIT MR PONEMAN SAID HE THINKS WALMART HAS A BETTER CHANCE OF MEETING EXPECTATIONS THAN MOST ANY OTHER RETAILER 9302240031 930224 MARKETING & MEDIA TCI TV NEW ZEALAND LEAD GROUP STARTING ASIAN NEWS CHANNEL A WALL STREET JOURNAL NEWS ROUNDUP A GROUP LED BY TELECOMMUNICATIONS INC AND TELEVISION NEW ZEALAND LTD SAID IT WILL LAUNCH AN ASIAN BUSINESSNEWS SATELLITE TV CHANNEL LATER THIS YEAR TELECOMMUNICATIONS AN ENGLEWOOD COLO CABLE CONCERN AND STATEOWNED TV NEW ZEALAND EACH OWN 36 OF THE NEW VENTURE ASIA BUSINESS NEWS SINGAPORE LTD A CLOSELY HELD HONG KONG CONCERN BUSINESS NEWS NETWORK LTD OWNS 18 OF THE CHANNEL A SINGAPORE GOVERNMENT AGENCY AND STATEOWNED SINGAPORE BROADCASTING CORP TOGETHER OWN THE REMAINING 10 OF ASIA BUSINESS NEWS THE PACT WAS EXPECTED THE STARTUP COSTS OF THE CHANNEL AND THE AMOUNTS INVESTED BY THE PARTNERS WEREN'T DISCLOSED ASIA BUSINESS NEWS WILL BE BASED IN SINGAPORE AND MANAGED BY TV NEW ZEALAND BILL EARL DIRECTOR OF BUSINESS DEVELOPMENT AT TV NEW ZEALAND DECLINED TO COMMENT ON THE FINANCIAL DETAILS OF THE VENTURE OR MAKE REVENUE PROJECTIONS CITING COMPETITIVE REASONS SEPARATELY A TV NEW ZEALAND SPOKESMAN SAID ALL FOUR PARTNERS ARE INJECTING CASH INTO THE VENTURE IN PROPORTION TO THEIR RESPECTIVE SHAREHOLDINGS ASIA BUSINESS NEWS WILL BROADCAST IN ENGLISH 18 HOURS EVERY WEEKDAY AND SIX HOURS ON SATURDAY STARTING IN THE FOURTH QUARTER OF 1993 THE CHANNEL IS A FREETOAIR SERVICE THAT WILL DEPEND ON ADVERTISING FOR ITS REVENUE ASIA BUSINESS NEWS IS THE LATEST ENTRY IN A STILL YOUNG BUT RAPIDLY DEVELOPING MARKET TIME WARNER INC'S HOME BOX OFFICE UNIT AUSTRALIA BROADCASTING CORP VIACOM INC'S MTV UNIT AND BRITISH BROADCASTING CORP ARE ALREADY CHASING VIEWERS IN THE REGION 9302240030 930224 INTERNATIONAL BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC BRITISH COMPANY TO DECIDE DETAILS OF ITS RESTRUCTURING IMPERIAL CHEMICAL INDUSTRIES PLC IS EXPECTED TO DECIDE DETAILS OF ITS CORPORATE RESTRUCTURING IN A BOARD MEETING TODAY AND ANNOUNCE SHARPLY LOWER PRETAX PROFIT FOR 1992 TOMORROW ICI'S BOARD WILL DETERMINE WHETHER TO PROCEED WITH PREVIOUSLY ANNOUNCED PLANS FOR BREAKING APART THE 67YEAROLD BRITISH PHARMACEUTICAL AND CHEMICAL COMPANY IF IT VOTES TO SEPARATE THE CHEMICAL AND BIOSCIENCE OPERATIONS INTO TWO COMPANIES THE BOARD IS EXPECTED TO REVEAL FINANCING PLANS AND PROVIDE SOME DETAILS ABOUT FLOTATION OF STOCK FOR THE MOVE MARKET OBSERVERS CONSIDER IT A STRONG POSSIBILITY THAT THE BOARD WILL APPROVE A RIGHTS ISSUE TOTALING 1 BILLION 146 BILLION TO SET OFF ZENECA WHICH WOULD MAKE UP ICI'S BIOSCIENCE OPERATIONS HOWEVER BUSINESS CONDITIONS HAVE COOLED THE OUTLOOK FOR THE PHARMACEUTICAL SECTOR LEAVING QUESTIONS ABOUT HOW ICI WILL PROCEED ANALYSTS ESTIMATE THAT 1992 PRETAX PROFIT WAS BETWEEN 500 MILLION AND 585 MILLION DOWN FROM 843 MILLION FOR 1991 9302240029 930224 AMERICAN CYANAMID SAYS IT WILL SPIN OFF LAST CHEMICAL LINE WAYNE NJ AMERICAN CYANAMID CO TAKING ANOTHER STEP TOWARD LEAVING CHEMICALS DISCLOSED IT WILL SPIN OFF ITS REMAINING 105 BILLIONAYEAR CHEMICAL OPERATION TO SHAREHOLDERS PERHAPS LATER THIS YEAR FOR THE PAST TWO YEARS THE COMPANY HAS BEEN RESTRUCTURING TO FOCUS ON THE MEDICAL AND AGRICULTURAL BUSINESSES WHICH ACCOUNT FOR MOST OF ITS EARNINGS IT HAS SOLD EIGHT CHEMICAL BUSINESSES AND HAD SEPARATED ITS REMAINING OPERATIONS AS A FREESTANDING UNIT CYTEC INDUSTRIES BASED IN WEST PATERSON NJ CYTEC EMPLOYS 6800 WORKERS INCLUDING ABOUT 1000 OVERSEAS AT 25 FACILITIES WHILE CHEMICAL SALES FELL 8 LAST YEAR TO 105 BILLION FROM 114 BILLION OPERATING EARNINGS IMPROVED 6 TO 34 MILLION FROM 32 MILLION FOR ALL OF CYANAMID NET INCOME CLIMBED LAST YEAR TO A RECORD 3951 MILLION OR 435 A SHARE ON RECORD REVENUES OF 527 BILLION THE COMPANY SAID CYTEC COULD BE SPUN OFF TO HOLDERS BY THE LATTER PART OF THE YEAR IF THE COMPANY GETS FAVORABLE RULINGS FROM THE INTERNAL REVENUE SERVICE AND CLEARANCE FROM OTHER REGULATORS CYANAMID IS FOCUSING ON THE HIGHERMARGIN PRESCRIPTION DRUG AND LIFE SCIENCES BUSINESSES EVEN THOUGH PRESIDENT CLINTON HAS MADE IT CLEAR HE WANTS DRUG PRICES TO SLOW THEIR SHARP RISE OF RECENT YEARS LAST YEAR SALES OF CYANAMID'S MEDICAL GROUP ROSE 10 TO 289 BILLION WHILE OPERATING EARNINGS ROSE 3 TO A RECORD 395 MILLION THE COMPANY ALSO AGREED LAST DECEMBER TO BUY A 535 STAKE IN IMMUNEX CORP A CALIFORNIA BIOTECHNOLOGY COMPANY TO BOOST ITS PRESENCE IN THAT RAPIDLY GROWING FIELD IMMUNEX SHAREHOLDERS ARE EXPECTED TO VOTE ON THAT TRANSACTION IN THE SECOND QUARTER 9302240028 930224 PROPOSED LEGISLATION WOULD GIVE EPA BROAD NEW POWERS ADMINISTRATION HASN'T GIVEN ENDORSEMENT OF THE VETO OVER OTHER AGENCIES' RULES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS CIRCULATING PROPOSED LEGISLATION THAT WOULD VASTLY EXPAND THE POWERS OF THE ENVIRONMENTAL PROTECTION AGENCY INCLUDING A PROVISION TO EFFECTIVELY GIVE THE EPA ADMINISTRATOR VETO POWER OVER LAWS AND REGULATIONS BY OTHER CABINET AGENCIES THE PROPOSAL WHICH ORIGINATED IN TALKS BETWEEN THE NEWLY CREATED WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY AND MEMBERS OF CONGRESS WAS YESTERDAY CIRCULATED BY THE WHITE HOUSE BUDGET OFFICE FOR COMMENT AS A DISCUSSION DRAFT AMONG CABINET AGENCIES THE BILL HASN'T BEEN ENDORSED BY THE CLINTON ADMINISTRATION IF ENACTED THE PROPOSED LEGISLATION COULD CONCEIVABLY MAKE THE EPA AS POWERFUL AS THE RECENTLY DECEASED WHITE HOUSE COUNCIL ON COMPETITIVENESS WHICH DURING THE BUSH ADMINISTRATION FREQUENTLY BLOCKED CABINET ACTIONS DEEMED TOO UNFAVORABLE TO BUSINESS IN THIS CASE HOWEVER IT WOULD BE NOT BUSINESSES BUT ENVIRONMENTALISTS WHO WOULD ACQUIRE THE MEANS TO APPEAL ADMINISTRATION ACTIONS THE DRAFT BILL MAY BE YET ANOTHER INDICATION THAT VICE PRESIDENT ALBERT GORE WILL HAVE A STRONG HAND IN SETTING ENVIRONMENTAL POLICY ALTHOUGH MR GORE WASN'T DIRECTLY INVOLVED IN DISCUSSIONS TO DRAFT THE PROPOSED LANGUAGE HE IS FOLLOWING THE MATTER WITH INTEREST ACCORDING TO AN ADMINISTRATION SOURCE KATHLEEN MCGINTY WHO HEADS THE WHITE HOUSE ENVIRONMENT OFFICE AND HAS PARTICIPATED IN THE TALKS IS A FORMER SENATE STAFF AIDE TO MR GORE UNDER THE BILL THE EPA ADMINISTRATOR WOULD BE GIVEN POWER TO REVIEW LEGISLATION REGULATIONS AND NEWLY AUTHORIZED FEDERAL CONSTRUCTION PROJECTS PROPOSED BY ANY FEDERAL DEPARTMENT OR AGENCY IF ANY WERE FOUND BY THE ADMINISTRATOR TO BE UNSATISFACTORY FROM THE STANDPOINT OF PUBLIC HEALTH OR WELFARE OR ENVIRONMENTAL QUALITY THE EPA COULD IMMEDIATELY AND UNILATERALLY BLOCK THE ACTION ACCORDING TO THE PROPOSED LEGISLATION THE EPA ADMINISTRATOR'S VETO COULD BE OVERRIDDEN ONLY BY THE PRESIDENT WHO WOULD HAVE UP TO 45 DAYS TO DO SO BY WRITTEN ORDER THE LAW WOULD FURTHER REQUIRE THAT THE PRESIDENT'S ORDER TO OVERRIDE BE SUBMITTED TO THE SENATE COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS AND THE HOUSE COMMITTEE ON MERCHANT MARINE AND FISHERIES THE STRONG WORDING OF THE DRAFT LEGISLATION TOOK EVEN SOME EPA OFFICIALS ABACK I'M SURPRISED THAT I HAVEN'T BEEN ABLE TO HEAR THE SCREAMS COMING FROM OTHER AGENCIES SAID ONE EPA EMPLOYEE MARLA ROMASH A SPOKESWOMAN FOR MR GORE AND THE NEW WHITE HOUSE ENVIRONMENTAL OFFICE SAID IT'S TOO EARLY TO SAY WHETHER THE ADMINISTRATION WOULD FAVOR OR OPPOSE THE LANGUAGE IN THE BILL WE ARE SEEKING INPUT FROM THE AGENCIES SHE SAID WE WANT THEIR VIEWS ON IT THE PRINCIPAL PURPOSE OF THE BILL WOULD BE TO TRANSFER TO THE EPA STATUTORY POWERS THAT PREVIOUSLY RESIDED WITH THE COUNCIL ON ENVIRONMENTAL QUALITY WHICH PRESIDENT CLINTON HAS SAID HE INTENDS TO ELIMINATE AMONG THE COUNCIL'S CURRENT FUNCTIONS IS TO REQUIRE OTHER CABINET AGENCIES TO PERFORM ENVIRONMENTALIMPACT STUDIES BEFORE THEY UNDERTAKE ACTIONS POTENTIALLY DAMAGING TO THE ENVIRONMENT BUT THE COUNCIL DOESN'T HAVE THE POWER TO BLOCK ACTIONS BY OTHER AGENCIES AS THE EPA WOULD HAVE UNDER THE DRAFT LEGISLATION UNDER CURRENT LAW THE EPA MAY REVIEW ENVIRONMENTALIMPACT STATEMENTS ISSUED BY OTHER AGENCIES AND REFER ANY IT DEEMS UNACCEPTABLE TO THE COUNCIL ON ENVIRONMENTAL QUALITY THE COUNCIL MAY THEN ISSUE A REQUEST THAT THE PRESIDENT INTERVENE IN THE MATTER BUT THE PRESIDENT IS FREE TO IGNORE THE REQUEST SAYS THE EPA EMPLOYEE WE'VE NEVER HAD THE ABILITY TO HOLD UP OTHER AGENCY ACTION PENDING AN APPEAL 9302240027 930224 MARKETING & MEDIA AFFILIATED PUBLICATIONS NAMES STORIN EDITOR OF BOSTON GLOBE UNIT BOSTON AFFILIATED PUBLICATIONS INC SAID IT NAMED MATTHEW V STORIN EXECUTIVE EDITOR OF ITS BOSTON GLOBE UNIT AS THE NEWSPAPER'S EDITOR EFFECTIVE MARCH 1 MR STORIN 50 YEARS OLD IS A GLOBE VETERAN WHO FIRST JOINED THE PAPER IN 1969 HE REJOINED THE PAPER IN AUGUST AFTER SPENDING SEVEN YEARS AT MANAGEMENT POSTS WITH OTHER PUBLICATIONS INCLUDING US NEWS AND WORLD REPORT AND THE CHICAGO SUN TIMES MR STORIN WILL SUCCEED JOHN S DRISCOLL 58 WHO WAS NAMED VICE PRESIDENT OF THE GLOBE MR DRISCOLL EDITOR OF THE GLOBE SINCE 1987 WILL REPRESENT THE GLOBE IN A NEWLY FORMED CONSORTIUM OF COMMUNICATIONS COMPANIES AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY MEDIA LAB AFFILIATED SAID THE CONSORTIUM IS CONDUCTING RESEARCH AIMED AT DISCOVERING WAYS TO INDIVIDUALIZE NEWS AND ADVERTISING AFFILIATED SAID HELEN W DONOVAN 45 THE GLOBE'S MANAGING EDITOR WILL SUCCEED MR STORIN AS EXECUTIVE EDITOR 9302240026 930224 BUSINESS BRIEF ULTIMATE CORP COMPUTER CONCERN POSTS FISCAL THIRDQUARTER LOSS ULTIMATE CORP SAID IT POSTED A LOSS OF 177 MILLION FOR ITS FISCAL THIRD QUARTER MOSTLY BECAUSE OF CHARGES FOR RESTRUCTURING DEBT AND VACATING SOME FACILITIES THE EAST HANOVER NJ COMPUTER COMPANY PREDICTED HOWEVER THAT DESPITE FASTFALLING REVENUE EFFORTS TO REPOSITION ITSELF SHOULD LEAD TO PROFITABILITY IN THE NEAR TERM FOR THE PERIOD ENDED JAN 31 ULTIMATE'S LOSS AMOUNTED TO 188 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 57 MILLION OR 62 CENTS A SHARE REVENUE DROPPED 31 TO 26 MILLION FROM 376 MILLION THE LATEST PERIOD INCLUDED PREVIOUSLY ANNOUNCED CHARGES OF 158 MILLION RELATED TO THE TRANSFER OF ITS HEADQUARTERS TO CHASE MANHATTAN BANK ITS VACATING OTHER FACILITIES AND THE REVALUATION OF SOME ASSETS IN ADDITION THE COMPANY SAID THERE WAS A 686000 LOSS FROM DISCONTINUING ITS BRITISH OPERATION THE YEARAGO THIRD QUARTER INCLUDED A 2 MILLION CHARGE FOR OBSOLETE SOFTWARE 9302240025 930224 THE OTHER SHOE JAPANESE RECESSION PROMPTS CORPORATIONS TO TAKE RADICAL STEPS NISSAN WILL CLOSE A FACTORY OTHERS PLAN JOB CUTS EVEN BOSSES AREN'T SAFE FRUGAL SHOPPERS WON'T HELP BY WALL STREET JOURNAL STAFF REPORTERS JOHN BUSSEY CLAY CHANDLER AND MICHAEL WILLIAMS TOKYO TO GET AN IDEA OF WHAT THE NEWS OUT OF JAPAN INC WILL PROBABLY SOUND LIKE IN THE COMING MONTHS JUST LISTEN TO THE JOLTING HEADLINES FROM YESTERDAY ALONE NISSAN MOTOR CO SLAMMED BY PLUMMETING SALES AND PROFITS SAID IT WILL CLOSE A MAJOR AUTO PLANT THE FIRST TIME THAT HAS EVER HAPPENED IN JAPAN'S CAR INDUSTRY SAY OFFICIALS AT THE BIG AUTO COMPANIES NISSAN JAPAN'S SECONDLARGEST AUTO MAKER ALSO WILL ACCELERATE PLANS TO TRIM 5000 EMPLOYEES 9 OF ITS WORK FORCE THROUGH ATTRITION AND THE COMPANY DOUBLED ITS ESTIMATE OF ITS PRETAX LOSS FOR THE YEAR ENDING MARCH 31 ITS FIRST PRETAX LOSS SINCE 1946 MATSUSHITA ELECTRIC INDUSTRIAL CO THE WORLD'S BIGGEST CONSUMERELECTRONICS COMPANY SAID BUSINESS IS SO BAD THAT GROUP PRETAX PROFIT FELL 60 IN THE LATEST QUARTER THE AX FELL TOO PRESIDENT AKIO TANII 64 YEARS OLD RESIGNED OSTENSIBLY TO TAKE THE HEAT FOR A 1991 LOANFRAUD SCANDAL AT A SUBSIDIARY BUT MORE LIKELY BECAUSE OF MATSUSHITA'S BROADER TROUBLES AND MAMMOTH NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S LARGEST COMPANY IS PREPARING A SPARTAN BUSINESS PLAN THAT WOULD SHRINK ITS PAYROLL BY MORE THAN 10 POSSIBLY 30000 PEOPLE IN THE NEXT THREE YEARS GONE TOO WILL BE MANY OF THE COMPANY'S 1300 SALES OUTLETS WHAT YOU ARE HEARING IS THE SOUND OF THE OTHER SHOE DROPPING FOR MONTHS JAPAN HAS BEEN IN THE MIDST OF A SERIOUS ECONOMIC CONTRACTION YET ITS BIG CORPORATIONS HAD HELD ON AS IF BY SHEER FORTITUDE THEY WOULD BE ABLE TO WEATHER THE STORM AND AVOID SERIOUS LAYOFFS AND RESTRUCTURINGS NOW THEY APPEAR TO BE SUBMITTING TO THE INEVITABLE LIKE COMPANIES IN RECESSION THROUGHOUT THE WORLD THEY MUST CHANGE AND SOMETIMES SHRINK TO SURVIVE IT IS A PAINFUL CONVULSION FOR A CORPORATE COMMUNITY THAT FOR YEARS HAD CONCENTRATED ON EXPANSION AND SEEMED UNBEATABLE AT IT BUT THOUGH THE DECISIONS IN THE COMING MONTHS WILL BE TOUGH ONES FOR JAPAN'S COMPANIES ECONOMISTS AND ANALYSTS HERE SEEM TO BE BREATHING A SIGH OF RELIEF THIS IS A HEALTHY SIGN THEY SAY CORPORATE JAPAN AND THE GOVERNMENT TOO IS STARTING TO WAKE UP TO WHAT NEEDS TO BE DONE THE DEEP DIFFICULTY OF EACH CORPORATION IS SURFACING SAYS YOSHITO YAMAGUCHI A DIRECTOR OF MITSUBISHI ELECTRIC CORP IT'S INEVITABLE THAT JAPANESE CORPORATIONS WILL THINK GROWTH BUT IT TURNS OUT WE CAN'T EXPECT TOO MUCH GROWTH WE HAVE TO ADJUST WHERE WILL THE COST CUTTING THE LAYOFFS AND THE STREAMLINING TAKE PLACE NAME YOUR SECTOR THERE ARE OVERCAPACITY AND PLUNGING SALES IN AUTOS ELECTRONICS RETAILING CHEMICALS AND NEWSPAPER ADVERTISING A BIG SHAKEOUT LOOMS IN THE SECURITIES BUSINESS SO TOO IN BROAD STRETCHES OF THE PARTSSUPPLIER INDUSTRY AND THIS TIME WHITECOLLAR WORKERS ARE LIKELY TO BE HIT RIGHT ALONG WITH BLUECOLLAR EMPLOYEES POLITICIANS ARE IMPLORING COMPANIES NOT TO LAY OFF WORKERS AND TO TRY TO BOOST WAGES TO STIMULATE CONSUMPTION CLEARLY JAPAN'S TRADITION OF LIFETIME EMPLOYMENT WILL SLOW IF NOT BLOCK MANY LAYOFFS BUT ONLY FOR A TIME AND ONLY IN CERTAIN CASES OVERSTAFFING HAS GOTTEN SO BAD IN JAPAN THAT IT IS ESTIMATED THAT NEARLY A MILLION REDUNDANT WORKERS ARE DRAWING PAYCHECKS TODAY THE RESTRUCTURINGS ANNOUNCED YESTERDAY ARE JUST THE TIP OF THE ICEBERG SAYS PETER MORGAN CHIEF ECONOMIST AT MERRILL LYNCH JAPAN INC AT THE VERY LEAST YOU'LL HAVE ANOTHER YEAR OF THIS PROBABLY TWO OR THREE THE ECONOMIC BACKDROP FOR THE COMING RESTRUCTURING IS STARK TOTAL AUTO OUTPUT WAS DOWN 135 IN JANUARY FROM A YEAR EARLIER THE INDUSTRY'S STEEPEST DECLINE IN 18 YEARS DOMESTIC DEMAND FOR CARS PLUMMETED 112 FROM A YEAR EARLIER NOTCHING ITS 21ST CONSECUTIVE MONTHLY DECLINE CORPORATE PROFITS MEANWHILE ARE EXPECTED TO DROP FOR THE THIRD CONSECUTIVE YEAR DOWN AS MUCH AS 20 IN JANUARY THE NUMBER OF BUSINESS FAILURES ROSE YEARTOYEAR FOR THE 28TH MONTH IN A ROW CAPITAL SPENDING IS EXPECTED TO DROP 4 THIS FISCAL YEAR THE FIRST TIME THAT HAS HAPPENED SINCE RECORDS HAVE BEEN KEPT JAPAN'S BANKS AWASH IN BAD LOANS CAN BARELY FUND THEIR OWN NEEDS LET ALONE THOSE OF OTHERS THE MONEY SUPPLY IS SHRINKING AND EARLY NEXT MONTH THE GOVERNMENT IS EXPECTED TO ANNOUNCE THAT JAPAN'S GROSS NATIONAL PRODUCT ITS TOTAL OUTPUT OF GOODS AND SERVICES CONTRACTED FOR A SECOND CONSECUTIVE QUARTER DON'T COUNT ON SHOPPERS TO LEAD THE ECONOMY OUT OF THE WOODS WITH THE UNEMPLOYMENT RATE INCHING UPWARD AND OVERTIME HOURS A KEY SOURCE OF INCOME PLUNGING CONSUMER CONFIDENCE HAS FALLEN TO ITS LOWEST LEVEL IN A DECADE IN 1992 SALES AT JAPAN'S DEPARTMENT STORES SLID 33 THE FIRST ANNUAL DECLINE IN 27 YEARS THE PHILOSOPHY OF HONEST POVERTY A GUIDE TO THE SIMPLE LIFE IS CLIMBING JAPAN'S BESTSELLER LIST IT'S FOR THESE REASONS THAT JAPAN IS NOW SEEING A WAVE OF COSTCUTTING AND RESTRUCTURING MOVES IN JAPAN'S PAPER INDUSTRY FOR EXAMPLE OVERCAPACITY HAS TRIGGERED CORPORATE CONSOLIDATION AND A FREEFALL IN PRICES JAPANESE PAPER PRICES ARE DOWN MORE THAN 30 FROM THE LATE1980S PEAK LAST MONTH OJI PAPER CO JAPAN'S BIGGEST PAPERMAKER SAID IT WOULD MERGE WITH KANZAKI PAPER MANUFACTURING CO RANKED SEVENTH THAT COMBINATION WILL FOLLOW THE PLANNED APRIL MERGER OF JUJO PAPER CO AND SANYOKOKUSAKU PULP CO SOME MANUFACTURERS ARE SAVING ON DEVELOPMENT COSTS BY SHARING PRODUCTS RATHER THAN BUILDING THEIR OWN FROM SCRATCH HONDA MOTOR CO AND ISUZU MOTORS LTD RECENTLY SAID THEY PLAN TO START SELLING CERTAIN OF EACH OTHER'S VEHICLES PAYROLL IS ALSO BEING ATTACKED ELECTRONICSMAKER SONY CORP AMONG OTHERS SAID IT EXPECTS TO HAVE SHIFTED 600 REDUNDANT ADMINISTRATIVE PEOPLE TO THE SALES FORCE BY THE END OF NEXT MONTH PIONEER ELECTRONIC CORP MEANWHILE CREATED A RUCKUS WHEN IT SAID IT WOULD LAY OFF 35 MANAGERS THE NEWS SPARKED FRONTPAGE HEADLINES IN JAPAN AND EVEN IN THE US AND PIONEER LATER BACKED DOWN FROM ITS DEADLINE TO GET RID OF THE EMPLOYEES FOREIGN FIRMS ARE MAKING HARD DECISIONS TOO IBM JAPAN LTD HAS SAID IT HOPES TO SHED ROUGHLY 40 OF ITS 3000 OR SO EMPLOYEES AGED 50 AND OLDER THROUGH ITS FIRSTEVER EARLYRETIREMENT PLAN EASTMAN KODAK JAPAN LTD ASTONISHED THE CORPORATE COMMUNITY WHEN IT WITHDREW JOB OFFERS TO EIGHT UNIVERSITY STUDENTS IT HAD PLANNED TO HIRE A HIGHLY EMBARRASSING MOVE IN PROTOCOLCONSCIOUS JAPAN AT NISSAN COMPANY OFFICIALS SAID THEY WILL SHUTTER AUTOASSEMBLY OPERATIONS AT THE AGING ZAMA PLANT JUST OUTSIDE OF TOKYO IN EARLY 1995 I THINK IT'S VERY POSSIBLE THAT OTHER JAPANESE CAR MAKERS WILL FOLLOW NISSAN'S LEAD IN CLOSING FACTORIES SAYS KOJI ENDO AN AUTO ANALYST AT SG WARBURG SECURITIES JAPAN LTD YESTERDAY NISSAN EXECUTIVES SAID THEY NOW EXPECT THE COMPANY TO REPORT A PRETAX LOSS OF 29 BILLION YEN 248 MILLION FOR THE YEAR ENDING MARCH 31 ON SALES OF 39 TRILLION YEN THEY SAID THEY HOPE TO RAISE SOME EXTRA MONEY IN THE SHORT TERM BY SELLING COMPANYOWNED DORMITORIES AND OTHER PROPERTIES EXECUTIVE VICE PRESIDENT ATSUSHI MURAMATSU SAID HE EXPECTS NISSAN TO REPORT A PRETAX PROFIT IN THE NEXT FISCAL YEAR WHICH BEGINS APRIL 1 AS AN AGGRESSIVE COSTCUTTING PROGRAM KICKS IN NISSAN HOPES TO SAVE MONEY BY CUTTING TOTAL MODEL VARIATIONS BY ABOUT 35 OVER THE NEXT THREE YEARS AND REDUCING THE NUMBER OF UNIQUE PARTS USED IN EACH VEHICLE BY ABOUT 30 IN ADDITION THE COMPANY IS SLASHING CAPITAL EXPENDITURES BUT SOME THINK NISSAN'S EXPECTATIONS MAY BE TOO OPTIMISTIC IT WILL BE ABSOLUTELY IMPOSSIBLE FOR THE AUTO MAKER TO POST A PROFIT IN THE NEXT FISCAL YEAR CONTENDS MR ENDO OF SG WARBURG HE CALCULATES NISSAN WILL SELL 50000 FEWER CARS AND TRUCKS NEXT YEAR THAN THIS YEAR WHILE SOME OF THE WORKERS AT ZAMA WILL REMAIN AT A RELATED DISTRIBUTION CENTER AND MACHINETOOL OPERATION THE 2500 WORKERS ON THE ASSEMBLY LINE FACE A TOUGH CHOICE THE COMPANY SAYS THEY CAN STICK WITH NISSAN BY MOVING TO JOBS AT NISSAN'S NEW PLANT IN KYUSHU AT THE FAR WESTERN TIP OF THE JAPANESE ARCHIPELAGO OR AT ONE OTHER PLANT BUT MANY ZAMA EMPLOYEES PARTICULARLY OLDER WORKERS WITH ROOTS IN THE TOKYO AREA ARE LIKELY TO QUIT RATHER THAN RELOCATE INDUSTRY ANALYSTS SAY DIFFICULT TRANSFERS OF THIS SORT ARE ROCKING MANY EMPLOYEE GROUPS IN JAPAN MATSUSHITA MEANWHILE HAS PROBLEMS ENDEMIC TO JAPAN'S ELECTRONICS INDUSTRY SATURATED MARKETS AND A LACK OF NEW HIT PRODUCTS SOME ANALYSTS WHO FOLLOW MATSUSHITA AREN'T BULLISH ABOUT ITS PROSPECTS THE COMPANY HAS A LOT OF PROBLEMS SAYS CHUCK GOTO AN ANALYST WITH SG WARBURG I'M GLAD I HAVE A SELL' RECOMMENDATION FOR THE COMPANY MATSUSHITA IS STILL HEAVILY GEARED TOWARD VOLUME PRODUCTION HE SAYS WHICH HITS THE COMPANY WITH HIGH OVERHEAD COSTS WHEN ITS SALES FALL OFF WHICH IS THE CASE NOW YESTERDAY MATSUSHITA ANNOUNCED RESULTS FOR THE THIRD QUARTER ENDED DEC 31 CONSOLIDATED SALES FELL 6 TO 188 TRILLION YEN 1612 BILLION FROM 201 TRILLION YEN IN THE YEAREARLIER PERIOD THE COMPANY'S GROUP PRETAX PROFIT FOR THE QUARTER FELL TO 502 BILLION YEN FROM 1252 BILLION YEN MR TANII WHO QUIT AS COMPANY PRESIDENT WAS SUCCEEDED BY YOICHI MORISHITA A FORMER MANAGER OF CONSUMER ELECTRONICS WHO HAS SERVED AS MATSUSHITA'S EXECUTIVE VICE PRESIDENT SINCE DECEMBER MR TANII WILL BE A CORPORATE ADVISER AND WILL NO LONGER SIT ON THE COMPANY'S BOARD OF DIRECTORS IT WASN'T CLEAR IF MR TANII WOULD ALSO RESIGN FROM THE BOARD OF MCA INC THE HOLLYWOOD STUDIO MATSUSHITA ACQUIRED IN 1990 FOR 659 BILLION HIROYUKI MIZUNO A MATSUSHITA EXECUTIVE DIRECTOR SAYS THE RESTRUCTURING UNDER WAY AT JAPANESE COMPANIES INDICATES THAT THEY ARE MOVING TOWARD THE TOUGHER AMERICAN MANAGEMENT STYLE THAT THE JAPANESE HAVE LONG DISDAINED WE ARE COMING TO THE US WAY HE SAYS OUR MANAGEMENT HAS TO BE CHANGED THE NEWS OUT OF NTT MEANWHILE IS JUST THE LATEST ROUND OF TROUBLE FOR THE COMPANY WHICH WAS GOVERNMENT OWNED UNTIL AN INITIAL PUBLIC OFFERING IN 1987 ITS STOCK WHICH ONCE WAS WILDLY POPULAR AMONG INVESTORS HAS PLUMMETED OVER THE LAST COUPLE OF YEARS NTT IS ALSO WRESTLING WITH A BLOATED BUREAUCRACY AND INTENSE COMPETITION FOR JAPAN'S DOMESTIC LONGDISTANCE PHONE BUSINESS ALL OF THIS GRIM CORPORATE NEWS COULD SPELL OPPORTUNITY FOR US AND OTHER FOREIGN FIRMS HOPING TO CRACK THE JAPANESE MARKET AND CAPITALIZE ON WEAKNESS HERE WITH JAPANESE COMPANIES SLASHING RECRUITING AND PUSHING MIDDLE MANAGERS OUT THE DOOR THERE ARE MORE OPPORTUNITIES TO HIRE QUALIFIED JAPANESE PERSONNEL AN ALMOST UNHEARDOF PROSPECT A FEW YEARS AGO FALLING LAND PRICES ALSO MAKE IT EASIER FOR FOREIGNERS TO FIND OFFICE SPACE AND THE COLLAPSE OF STOCK PRICES IN JAPAN IS AT LEAST THEORETICALLY MAKING IT MORE POSSIBLE TO ACQUIRE COMPANIES TO BE SURE CORPORATE JAPAN RESISTS TAKEOVERS WITH A VENGEANCE ON THE FLIP SIDE OF THIS THE SHARP RISE IN THE VALUE OF THE YEN AGAINST THE DOLLAR IN RECENT WEEKS HAS THROWN UP A PROTECTIVE BULWARK OF SORTS AROUND JAPAN SUDDENLY THE DOLLAR BUYS LESS WHICH ACTUALLY INCREASES COSTS FOR AMERICANS LOOKING TO ELBOW INTO JAPAN DOING BUSINESS HERE SAYS PAUL SUMMERVILLE ECONOMIST AT JARDINE FLEMING SECURITIES LTD JUST GOT 10 MORE EXPENSIVE AS TROUBLES FOR THE CORPORATE SECTOR GROW THE COUNTRY'S ECONOMIC POLICY MAKERS ARE FINDING THEIR FEET HELD SQUARELY TO THE FIRE FOR MONTHS THE GOVERNMENT HAS BEEN UNDER PRESSURE TO TAKE BOLDER ACTION TO STIMULATE THE ECONOMY LATELY THERE HAVE BEEN SIGNS IT IS FINALLY READY TO RESPOND EARLIER THIS MONTH JAPAN'S CENTRAL BANK LOWERED THE OFFICIAL DISCOUNT RATE THE FEE IT CHARGES ON LOANS TO COMMERCIAL BANKS TO 25 FROM 325 IN AN EFFORT TO PROVIDE CREDIT ON EASIER TERMS THE CENTRAL BANK MAY DROP RATES EVEN LOWER IN THE COMING MONTHS WHAT'S MORE PROMINENT MEMBERS OF THE NATION'S RULING LIBERAL DEMOCRATIC PARTY ARE URGING AN INCOMETAX CUT TO HELP SPUR CONSUMER SPENDING THE ANNOUNCEMENT OF SUCH A CUT COULD COME AS EARLY AS NEXT WEEK THE US AND OTHER NATIONS ARE PUTTING THEIR OWN FULLCOURT PRESS ON JAPAN BECAUSE WEAKNESS IN THE ECONOMY HERE IS CHOKING IMPORTS DAMPING ECONOMIC RECOVERY IN OTHER NATIONS AND SENDING JAPAN'S TRADE SURPLUS SOARING JAPAN'S LEADERS MAY FEEL OBLIGED TO OFFER PROPOSALS TO DEAL WITH THESE ISSUES WHEN THEY MEET IN LONDON THIS WEEKEND WITH FINANCE OFFICIALS FROM THE SEVEN MAJOR INDUSTRIALIZED NATIONS BUT FOR JAPAN'S COMPANIES THERE ARE MORE IMMEDIATE CONCERNS CLOSER TO HOME TO CONTEND WITH MANY ECONOMISTS NOW BELIEVE AN ECONOMIC RECOVERY HERE MAY NOT MATERIALIZE FOR SEVERAL MORE MONTHS THE NEXT TWO YEARS SAYS A NISSAN OFFICIAL WILL BE VERY DIFFICULT FOR US DAVID P HAMILTON CONTRIBUTED TO THIS ARTICLE 9302240024 930224 AT&T CHINA SET BROAD PACT ON PHONES GEAR FIRM'S ROLE OF OUTSIDER TIED TO 1989 BAN ENDS RIVALS ARE FORMIDABLE BY WALL STREET JOURNAL REPORTERS JAMES MCGREGOR IN BEIJING AND JOHN J KELLER IN NEW YORK WITH ONE SWEEPING AGREEMENT AMERICAN TELEPHONE & TELEGRAPH CO HAS GONE FROM OUTSIDER TO INSIDER IN CHINA'S TELECOMMUNICATIONSEQUIPMENT MARKET POTENTIALLY THE WORLD'S LARGEST AT&T AND CHINA'S STATE PLANNING COMMISSION WHICH BANNED THE US TELECOMMUNICATIONS GIANT FROM THE CHINESE PHONE MARKET JUST 3 1/2 YEARS AGO SIGNED THE ACCORD WHICH COULD MEAN BILLIONS OF DOLLARS IN REVENUE OVER THE NEXT DECADE FOR AT&T ACCORDING TO ITS VICE CHAIRMAN RANDALL TOBIAS THE MEMORANDUM OF UNDERSTANDING CALLS FOR AT&T AND CHINA TO EXPLORE BUSINESS ACTIVITIES IN EQUIPMENT PHONE AND DATA TRANSMISSION SERVICES AND THE BUILDING OF GIANT CORPORATE COMMUNICATIONS NETWORKS THE ACCORD ALSO GIVES THE US COMPANY A CHANCE TO SPRINT AHEAD OF ITS COMPETITORS THERE WHILE THE MEMORANDUM CONTAINED FEW DETAILS OFFICIALS FROM BOTH SIDES SAID IN BEIJING TUESDAY THAT IT LAYS THE GROUNDWORK FOR AT&T TO MOVE RAPIDLY INTO CHINA WITH SUCH PROJECTS AS TELEPHONE SWITCH FACTORIES AND A RESEARCH FACILITY COMANAGED WITH AT&T BELL LABORATORIES STILL AT&T FACES FORMIDABLE RIVALS FROM EUROPE AND JAPAN MOST NOTABLE IS FRANCE'S ALCATELALSTHOM SA WHICH TOOK OVER FORMER ITT CORP OPERATIONS IN CHINA AND NOW IS THE LARGEST SUPPLIER OF SWITCHING EQUIPMENT TO THAT MARKET THROUGH ITS ALCATEL BELL UNIT SWEDEN'S TELEFON AB LM ERICSSON A BIG SUPPLIER OF CELLULAR SYSTEMS TO CHINA LAST WEEK LANDED A 150 MILLION ORDER THE LARGEST TO DATE IN CHINA FOR CELLULAR SWITCHES AND RADIO STATIONS JAPAN'S NEC CORP AND FUJITSU LTD ARE OTHER MAJOR SUPPLIERS BUT NONE OF THESE COMPETITORS HAS THE COMPREHENSIVE OPERATIONS IN NETWORK GEAR TRANSMISSION SERVICES AND RESEARCH AND DEVELOPMENT THAT AT&T CAN BRING TO BEAR IN CHINA SAID YE QING VICE CHAIRMAN OF CHINA'S STATE PLANNING COMMISSION AT&T OFFERS THE FULL RANGE OF TECHNOLOGIES PRODUCTS SERVICES AND NETWORK EXPERIENCE THAT WILL BENEFIT CHINA WELL INTO THE 21ST CENTURY WITH THE MODERNIZATION THAT CHINA'S CONTEMPLATING THIS IS A MULTIBILLIONDOLLAR DEAL FOR AT&T IN JUST SWITCHING EQUIPMENT SAID JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC AT&T STOCK WAS QUOTED AT 5450 UP 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AS MANY BLUECHIP STOCKS TUMBLED MR TOBIAS SAID THAT ONCE THE STATE COUNCIL CHINA'S HIGHEST ADMINISTRATIVE BODY LOCATES CHINESE COMPANIES TO SERVE AS JOINTVENTURE PARTNERS AT&T COULD BUILD SEVERAL PLANTS TO MAKE SUCH PRODUCTS AS THE COMPANY'S 5ESS SYSTEMS USED TO SWITCH TELEPHONE TRAFFIC MICROELECTRONIC DEVICES OPTICAL TRANSMISSION GEAR CELLULAR NETWORK SYSTEMS AND OFFICE PHONE SYSTEMS HE SAID AT&T WILL ALSO HELP TRAIN CHINA'S PHONE WORKERS PROJECTS CONTEMPLATED IN THIS PARTNERSHIP ARE POTENTIALLY AMONG THE MOST EXTENSIVE IN OUR COMPANY'S HISTORY SAID MR TOBIAS AT&T BENEFITED FROM A REMARKABLE MIX OF LUCK SKILL AND A SWIRL OF POLITICAL AND ECONOMIC PRESSURES CREATED BY EVERYBODY FROM P RESIDENTS CLINTON AND BUSH TO CHINA'S PARAMOUNT LEADER DENG XIAOPING TO AMERICAN CHILDREN WHO PURCHASE TOYS MADE IN CHINA ON AUG 22 1989 THE STATE COUNCIL ISSUED A SECRET DIRECTIVE THAT IN EFFECT BANNED AT&T FROM THE CHINESE PHONE SWITCH MARKET THE DIRECTIVE WAS GENERALLY SEEN AS A PRESSURE TACTIC TO FORCE THE US TO RELAX ITS TRADING POLICIES WITH CHINA KNOWN AS ARTICLE 56 IT DIRECTED THAT FUTURE CONTRACTS FOR CHINESE PHONE SWITCHES BE RESERVED FOR SIEMENS AG OF GERMANY ALCATELALSTHOM AND NEC THIS AND OTHER BARRIERS TO US COMPANIES ALONG WITH A FASTGROWING TRADE DEFICIT PROMPTED THE BUSH ADMINISTRATION IN 1991 TO LAUNCH A ONEYEAR INVESTIGATION OF CHINA'S TRADE PRACTICES THOSE OFTEN ACRIMONIOUS TALKS ENDED LAST OCT 10 WITH CHINA AGREEING TO ELIMINATE SOME 80 OF ITS IMPORT QUOTAS AND OTHER MARKET BARRIERS OVER THE NEXT FIVE YEARS AT&T WHICH MADE ITS PLIGHT AND ARTICLE 56 A FOCAL POINT OF THOSE TALKS USED THE OPPORTUNITY TO RECOVER FROM A BLUNDER IN 1979 WHEN IT SPURNED A CHINESE INVITATION TO BUILD THE FIRST JOINTVENTURE PLANT IN CHINA FOR TELEPHONE SWITCHES SINCE RECONSIDERING AND COMING TO CHINA IN 1985 AT&T HAS ESTABLISHED JOINT VENTURES TO BUILD FIBEROPTIC CABLE AND TRANSMISSION EQUIPMENT BUT IT FOUND ITSELF CUT OUT OF THE LUCRATIVE SWITCHING MARKET BY NEC ALCATEL AND SIEMENS ALL OF WHICH HAVE SET UP SWITCH FACTORIES IN CHINA IT IS A MARKET AT&T COULD HARDLY AFFORD TO MISS CHINA CURRENTLY HAS 30 MILLION PHONE LINES THE GOVERNMENT'S GOAL IS TO REACH 100 MILLION LINES BY THE YEAR 2000 INSTALLING SOME 10 MILLION LINES OF SWITCHING EQUIPMENT A YEAR WITH SWITCHES PRICED AT ABOUT 120 A LINE THE POTENTIAL SALES REVENUE TO CHINA'S SUPPLIERS IS ABOUT 12 BILLION A YEAR THIS PACE IS EXPECTED TO LAST FOR SEVERAL DECADES BECAUSE CHINA NOW HAS FEWER THAN TWO PHONES PER 100 PEOPLE AND A GOAL OF HAVING 40 PHONES PER 100 PEOPLE BY THE YEAR 2020 CHINA'S THREE TELEPHONESWITCH PLANTS TWO OF WHICH ARE NEW PRODUCED ONLY 18 MILLION LINES OF SWITCHING EQUIPMENT LAST YEAR LAST YEAR'S TRADE AGREEMENT EFFECTIVELY KILLED ARTICLE 56 BECAUSE CHINA AGREED TO OPEN BIDDING AND ABIDE BY INTERNATIONALLY ACCEPTED PROCEDURES ON TELEPHONE SWITCH PURCHASES BUT THE AGREEMENT DIDN'T GIVE AT&T A LOCK ON THE MARKET SUCH COMPANIES AS NORTHERN TELECOM LTD A CANADIAN CONCERN WITH EXTENSIVE MANUFACTURING IN THE US AND SWEDEN'S LM ERICSSON HAVE BEEN MORE SUCCESSFUL THAN AT&T IN SELLING IMPORTED SWITCHES TO CHINA BOTH ARE VIGOROUSLY SEEKING PERMISSION TO SET UP SWITCH PLANTS IN CHINA YESTERDAY LM ERICSSON WAS QUICK TO PLAY DOWN AT&T'S ENTRANCE AT&T IS JUST ANOTHER COMPETITOR IN THE MARKET SAID BO LANDIN SENIOR VICE PRESIDENT OF MARKETS FOR ERICSSON IN STOCKHOLM HE POINTED OUT THAT ERICSSON SIGNED BROAD AGREEMENTS WITH CHINA IN 1992 FOR MORE THAN 1 BILLION IN ORDERS FOR ITS AXE NETWORK SWITCH WHICH COMPETES AGAINST AT&T'S 5ESS SYSTEM ERICSSON IS ALSO CHINA'S MAJOR SUPPLIER OF CELLULAR NETWORK EQUIPMENT AND IT HAS TWO PRODUCTION VENTURES TO BUILD CELLULAR RADIO EQUIPMENT AND THE AXE SWITCH BUT AT&T BOASTS ADDITIONAL ADVANTAGES LAST YEAR'S 18 BILLION US TRADE DEFICIT WITH CHINA AND CHINA'S FEARS OF THE CLINTON ADMINISTRATION CHINA IS CLEARLY NERVOUS ABOUT MR CLINTON WHILE HE HAS SAID LITTLE ABOUT CHINA SINCE ENTERING THE WHITE HOUSE DURING THE CAMPAIGN MR CLINTON OFFERED SUPPORT FOR CONGRESSIONAL EFFORTS TO TIE CHINA'S FAVORABLE TRADE STATUS WITH HUMANRIGHTS IMPROVEMENTS MR CLINTON'S FOCUS ON THE US ECONOMY ALSO HAS CHINA WORRIED THAT THE 18 BILLION TRADE DEFICIT COULD TRIGGER SOME SORT OF SANCTIONS ANALYSTS SAY THIS IS WHY CHINA RECENTLY HAS RELEASED PROMINENT POLITICAL PRISONERS WHILE TRYING TO MAKE IT EASIER FOR US COMPANIES TO DO BUSINESS WITH CHINA AT TUESDAY'S NEWS CONFERENCE MR TOBIAS ACKNOWLEDGED THESE PRESSURES BY CALLING FOR THE CLINTON ADMINISTRATION TO CONTINUE UNCONDITIONAL MOSTFAVOREDNATION TRADING STATUS FOR CHINA WHEN THE ANNUAL DEADLINE COMES IN JUNE BECAUSE HE SAID WITHOUT IT THE PARTNERSHIP WE CELEBRATE TODAY WOULD SIMPLY NOT BE POSSIBLE 9302240023 930224 WHO'S NEWS DETREX CORP DETREX CORP SOUTHFIELD MICH GERALD J ISRAEL 52 YEARS OLD FORMERLY VICE PRESIDENT TREASURER AND CONTROLLER AT CHRYSLER CORP'S CANADA UNIT WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF THIS MAKER OF CHEMICAL ADDITIVES FOR PETROLEUM PRODUCTS 9302240022 930224 POLITICS & POLICY TAX ATTORNEY IS NOMINATED TO HEAD IRS BY MICHAEL K FRISBY AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOMINATED WASHINGTON TAX ATTORNEY MARGARET RICHARDSON TO BE THE COMMISSIONER OF THE INTERNAL REVENUE SERVICE THE APPOINTMENT OF THE 49YEAROLD MS RICHARDSON WHO USES THE NICKNAME PEGGY WAS EXPECTED SHE IS A PARTNER WITH THE FIRM SUTHERLAND ASBILL & BRENNAN AND AS A FRIEND OF HILLARY RODHAM CLINTON WAS ACTIVE IN THE PRESIDENTIAL CAMPAIGN IN THE MID1970S SHE WORKED IN THE IRS CHIEF COUNSEL'S OFFICE AND MORE RECENTLY SERVED ON AN ADVISORY PANEL TO THE IRS COMMISSIONER ALSO YESTERDAY JEFFREY SHAFER WAS NAMED ASSISTANT TREASURY SECRETARY FOR INTERNATIONAL AFFAIRS MR SHAFER 48 HAS BEEN PART OF THE ECONOMICS DEPARTMENT AT THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT BOTH POSTS ARE SUBJECT TO SENATE CONFIRMATION THE WHITE HOUSE CRITICIZED FOR THE PACE OF NOMINATIONS TO VARIOUS AGENCIES YESTERDAY AFTERNOON RELEASED THE NAMES OF 21 OTHER PEOPLE PICKED FOR TOP POSTS AMONG THEM WAS THOMAS GRUMBLY WHO WAS CHOSEN TO MANAGE THE ENERGY DEPARTMENT'S CLEANUP AT NUCLEAR WEAPONS PLANTS AS ASSISTANT SECRETARY FOR ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MR GRUMBLY A FORMER CONGRESSIONAL AIDE TO VICE PRESIDENT ALBERT GORE IS PRESIDENT OF CLEAN SITES INC A NONPROFIT COMPANY INVOLVED IN CLEANING UP HAZARDOUS WASTE SUSAN FALLOWS TIERNEY WAS PICKED TO BE ASSISTANT ENERGY SECRETARY FOR DOMESTIC AND INTERNATIONAL POLICY WHICH ENTAILS OVERSIGHT OF VARIOUS RESEARCH AND LONGRANGE PLANNING FUNCTIONS MS TIERNEY IS CURRENTLY SECRETARY OF ENVIRONMENTAL AFFAIRS IN MASSACHUSETTS CONSPICUOUSLY ABSENT FROM THE LIST WAS MICHAEL BEATTY WHO IS STILL BELIEVED TO BE THE ADMINISTRATION'S CHOICE FOR DEPUTY ENERGY SECRETARY MR BEATTY'S POSITION AS GENERAL COUNSEL OF COASTAL CORP AN ENERGY COMPANY WITH BUSINESS TIES TO LIBYA AND IRAQ HAS STIRRED SOME CONTROVERSY AT THE INTERIOR DEPARTMENT THE NOMINATIONS INCLUDED BOB ARMSTRONG WHO HAS BEEN AN AIDE TO TEXAS GOV ANN RICHARDS AND A MEMBER OF THE STATE'S LAND COMMISSION AS ASSISTANT SECRETARY FOR LAND AND MINERALS MANAGEMENT AND GEORGE FRAMPTON PRESIDENT OF THE WILDERNESS SOCIETY AS ASSISTANT SECRETARY FOR FISH WILDLIFE AND PARKS AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES MR CLINTON NAMED WALTER BROADNAX TO BE DEPUTY SECRETARY AND AVIS LAVELLE AS ASSISTANT SECRETARY FOR PUBLIC AFFAIRS AT THE DEFENSE DEPARTMENT MASSACHUSETTS INSTITUTE OF TECHNOLOGY CHEMIST JOHN DEUTCH WAS NOMINATED TO BE UNDERSECRETARY FOR ACQUISITION WHILE FRANK WISNER A VETERAN OF THE STATE DEPARTMENT WAS NOMINATED TO BE UNDERSECRETARY OF POLICY BOTH APPPOINTMENTS HAD BEEN EXPECTED MR DEUTCH AN ENERGY DEPARTMENT UNDERSECRETARY DURING THE CARTER ADMINISTRATION WILL RUN WHAT IS EXPECTED TO BE AN OVERHAUL OF THE PENTAGON'S APPROACH TO ACQUISITION EMPHASIZING THE NEED TO INTEGRATE THE DEFENSE SECTOR INTO COMMERCIAL INDUSTRY IN THE PAST HE HAS BEEN CRITICAL OF THE GOVERNMENT'S APPROACH TO SPENDING ON SCIENCE AND TECHNOLOGY ESPECIALLY ON SUCH BIG PROJECTS AS THE SPACE STATION AND THE SUPERCONDUCTING SUPERCOLLIDER TWO PROGRAMS MR CLINTON PLANS TO CONTINUE MR CLINTON IS EXPECTED TO SOON NAME NICHOLAS RETSINAS AS FEDERAL HOUSING COMMISSIONER MR RETSINAS IS EXECUTIVE DIRECTOR OF THE RHODE ISLAND HOUSING & MORTGAGE FINANCE CORP 9302240021 930224 TECHNOLOGY COMPRESSION LABS TO SELL LOWERCOST VIDEOCONFERENCING SAN JOSE CALIF COMPRESSION LABS INC SAID IT PLANS TO BEGIN SELLING A RELATIVELY LOWCOST VIDEOCONFERENCING SYSTEM THAT ANALYSTS SAID COULD GIVE A BOOST TO THE NASCENT INDUSTRY AND THAT THE COMPANY EXPECTS TO HELP BOOST REVENUE BY AT LEAST 48 THIS YEAR COMPRESSION SAID ITS NEW SYSTEM CALLED ECLIPSE WILL LIST FOR AS LOW AS 15000 OR 50 TO 70 LESS THAN CURRENT SYSTEMS WITH COMPARABLE FEATURES VIDEOCONFERENCING SYSTEMS ALLOW PEOPLE IN DIFFERENT LOCATIONS TO CONDUCT MEETINGS WITH EACH OTHER USING VIDEO CAMERAS MONITORS AND OTHER HARDWARE THAT ARE TIED TOGETHER BY SPECIALIZED TELEPHONE LINES BUT SUCH SYSTEMS HAVE BEEN TOO EXPENSIVE TO CATCH ON BROADLY LOWER COST SYSTEMS SUCH AS COMPRESSION'S ARE VERY CRITICAL IN GETTING THIS MARKET OFF TO A START SAID SARAH DICKINSON AN ANALYST WITH PERSONAL TECHNOLOGY RESEARCH A MARKETRESEARCH FIRM COMPRESSION ALREADY HAS ORDERS FOR 1000 OF THE ECLIPSE SYSTEMS WHICH WILL BEGIN SHIPPING IN ABOUT A MONTH SAID JOHN TYSON COMPRESSION LABS' CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY COMPARISON THE COMPANY SHIPPED 450 OF ITS HIGHER PERFORMING MORE EXPENSIVE SYSTEMS IN THE FOURTH QUARTER HE SAID MARK LOWENSTEIN AN ANALYST WITH THE YANKEE GROUP ESTIMATED THE MARKET FOR ALL VIDEOCONFERENCING SYSTEMS TO BE ABOUT 330 MILLION IN 1992 AND GROWING TO 11 BILLION IN 1996 AS PRICES DROP VIDEO CONFERENCING SYSTEMS BECOME MORE ATTRACTIVE TO CORPORATIONS LOOKING FOR WAYS TO CONDUCT MEETINGS MORE QUICKLY EFFICIENTLY AND FOR LESS MONEY HE SAID WITH THE HELP OF THE NEW SYSTEM INTRODUCED YESTERDAY THE SAN JOSE CALIF COMPANY SEES AS ACCURATE ANALYSTS ESTIMATES THAT THE COMPANY'S 1993 REVENUE WILL CLIMB TO BETWEEN 160 MILLION AND 175 MILLION MR TYSON SAID IN 1992 COMPRESSION LABS POSTED A NET LOSS OF 33 MILLION OR 29 CENTS A SHARE ON REVENUE OF 1078 MILLION MR TYSON WOULD NOT COMMENT ON THE COMPANY'S QUARTERLY EARNINGS 9302240020 930224 BUSINESS BRIEF ALBERTSON'S INC COMPANY EXERCISES OPTION TO BUY 11 MILLION SHARES ALBERTSON'S INC SAID IT EXERCISED AN OPTION TO PURCHASE 11 MILLION SHARES OF THE BOISE IDAHO COMPANY'S COMMON STOCK FROM THE ESTATE OF THE COMPANY'S FOUNDER IN A TRANSACTION VALUED AT 520 MILLION THE TRANSACTION IS SCHEDULED TO CLOSE ON JULY 22 ALTHOUGH BOTH PARTIES INVOLVED ARE NEGOTIATING AN EARLIER CLOSING DATE ALBERTSON'S SAID THE ESTIMATED PURCHASE PRICE IS 4725 A SHARE BASED ON 96 OF THE AVERAGE CLOSING PRICE OF ALBERTSON'S COMMON STOCK FOR 30 CONSECUTIVE BUSINESS DAYS ENDED MONDAY ALBERTSON'S PLANS TO FINANCE THE STOCK PURCHASE WITH ABOUT HALF IN A COMMON STOCK ISSUE AND ABOUT HALF IN MEDIUMTERM NOTES WITH THREEYEAR TO SEVENYEAR MATURITIES THIS WOULD RESULT IN THE RETIREMENT OF ABOUT 55 MILLION COMMON SHARES WHEN THE TRANSACTIONS ARE COMPLETED THERE ARE 1323 MILLION COMMON SHARES OUTSTANDING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALBERTSON'S CLOSED AT 49125 A SHARE DOWN 175 9302240019 930224 WHO'S NEWS ELDORADO BANCORP ELDORADO BANCORP TUSTIN CALIF DONALD SODARO 59 YEARS OLD WAS ELECTED A DIRECTOR OF THE BANK HOLDING COMPANY INCREASING THE BOARD'S SIZE TO 10 HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ACCORD GROUP INC 9302240018 930224 ENTERPRISE FOCUS ON FRANCHISING FRANCHISERS MOVE TO IMPROVE DIALOGUE WITH FRANCHISEES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WANTED MEANINGFUL DIALOGUE BETWEEN FRANCHISERS AND FRANCHISEES THAT'S WHAT THE INTERNATIONAL FRANCHISE ASSOCIATION SAYS IT IS SEEKING AS FRANCHISEEFRANCHISER TENSIONS GROW THE FRANCHISER GROUP HAS ORGANIZED A FRANCHISEE ADVISORY COUNCIL THE IFA'S NEW CHAIRMAN C STEPHEN LYNN HAS CALLED 1993 THE YEAR OF INCLUSION IN WHICH FRANCHISEES FOR THE FIRST TIME WILL ASSUME A ROLE IN THE GROUP MR LYNN IS THE CHIEF EXECUTIVE OFFICER OF SONIC CORP A FASTFOOD OPERATOR AND FRANCHISER BASED IN OKLAHOMA CITY FOR ITS FIRST ASSIGNMENT THE 22MEMBER ADVISORY COUNCIL WILL HELP THE IFA DETERMINE HOW TO ENFORCE ITS RECENTLY REVISED CODE OF ETHICS THE IFA DESCRIBES BOTH THE CODE AND THE COUNCIL AS MAJOR STEPS TOWARD SELFREGULATION BY THE FRANCHISING INDUSTRY TENSIONS IN THE FIELD LARGELY STEM FROM FIGHTS OVER FRANCHISEES' TERRITORIAL RIGHTS AND FRANCHISETERMINATION ISSUES CHOSEN BY THEIR RESPECTIVE FRANCHISERS THE FRANCHISEES ON THE COUNCIL AREN'T THE DISGRUNTLED PEOPLE WHO INCREASINGLY CALL FOR NEW LAWS TO REGULATE FRANCHISERS SUCH LAWS WOULD HARM FRANCHISING SAYS COUNCIL MEMBER ROBERT S CHAPELL THE STAMFORD CONN FRANCHISEE OF MAIL BOXES ETC A BUSINESSSERVICES FRANCHISER BASED IN SAN DIEGO WE HAD BETTER GET OUR ACT TOGETHER TO PROTECT THE INVESTMENT WE HAVE HE SAYS OF FRANCHISERS AND FRANCHISEES WILL THE IFA REALLY ACT ON THE ADVICE OF FRANCHISEES THAT REMAINS TO BE SEEN MR CHAPELL NOTES BUT THE IFA APPEARS TO BE SINCERE IN ITS EFFORT TO SOLICIT ADVICE HE ADDS UMBRELLA GROUPS PLAN TO STEP UP LOBBYING FOR FRANCHISEES RATHER THAN ADVISE FRANCHISERS MANY FRANCHISEES WOULD RATHER FIGHT THEM IN LEGISLATIVE BATTLES THE NEW AMERICAN FRANCHISEE ASSOCIATION STARTS OUT WITH 11 SMALLER GROUPS AS MEMBERS TOGETHER CLAIMING TO REPRESENT SOME 10000 FRANCHISED OUTLETS OF THE MORE THAN 400000 IN THE US FOUNDER SUSAN P KEZIOS SAYS THE ASSOCIATION BASED IN CHICAGO WILL SOON OPEN A WASHINGTON OFFICE FOR LOBBYING SHE ADDS THAT THE GROUP WHICH SEEKS TO GROW FOURFOLD THIS YEAR WILL SUPPORT FEDERAL FRANCHISE LEGISLATION PROPOSED BY REP JOHN J LAFALCE D NY WHO HAS VOWED A HOLY CRUSADE ON FRANCHISING ABUSE MEANWHILE THE AMERICAN ASSOCIATION OF FRANCHISEES & DEALERS WHICH STARTED IN SAN DIEGO LAST MAY SAYS IT HAS 250 MEMBERS MOSTLY MULTIUNIT FRANCHISEES WHO REPRESENT THOUSANDS OF FRANCHISED UNITS CHAIRMAN ROBERT L PURVIN JR TOLD MEMBERS RECENTLY OUR ABILITY TO INFLUENCE FAVORABLE FRANCHISEE LEGISLATION WILL INCREASE AS OUR MEMBERSHIP INCREASES THE TWO GROUPS AIM TO OFFSET THE LOBBYING POWER OF MAJOR FRANCHISERS WE'RE TALKING ABOUT LEVELING THE PLAYING FIELD AND GETTING FRANCHISEE VOICES HEARD MS KEZIOS SAYS SOME SEE FRANCHISING AS A WAY AROUND THEIR MONEY CRUNCH FRANCORP INC A CONSULTING COMPANY IN OLYMPIA FIELDS ILL SAYS IT IS RECEIVING 15 TO 20 MORE INQUIRIES THAN A YEAR AGO FROM POTENTIAL FRANCHISERS MOSTLY COMPANIES EXPECTING A STRONGER ECONOMY AND THUS LOOKING TO EXPAND CONSUMERORIENTED BUSINESSES COMPANIES HAVE BEEN STYMIED IN EXPANSIONS BY THEIR INABILITY TO GET BANK FUNDING SAYS DONALD D BOROIAN CHAIRMAN THEREFORE THEY ARE LOOKING AT FRANCHISING AS A WAY TO EXPAND WHETHER OR NOT BANKS HAVE ACTUALLY REJECTED THEM FOR LOANS MANY COMPANIES ASSUME THAT A GROUP OF FRANCHISEES CAN PROVIDE OR GET MORE CAPITAL THAN A SINGLE COMPANY WORRELL'S STEAMED SHRIMP INC A VIRGINIA BEACH VA OPERATOR OF TWO OUTLETS FOR THE TAKEOUT AND DELIVERY OF COOKED SHRIMP SAYS IT SOON WILL BEGIN FRANCHISING ITS BUSINESS FORMAT IN ORDER TO GROW FASTER THAN IT OTHERWISE COULD THERE'S A GOODSIZED POOL OF FRANCHISEE CAPITAL OUT THERE SAYS A MICHAEL WORRELL PRESIDENT IN WARREN MICH RESTAURATEUR JOHN S AUSILIO IS PREPARING THE PROTOTYPE UNIT FOR AN ENVISIONED SPAGHETTI CHAIN HE SAYS FRANCHISING IS THE WAY TO GO THE GROWTH WILL BE MUCH QUICKER AND THE FUNDING MUCH FASTER SPECIALISTS WARN HOWEVER THAT STARTUP COSTS FOR NEW FRANCHISERS OFTEN OUTSTRIP THE INITIAL FEES RECEIVED FROM FRANCHISEES THUS FRANCHISING MAY NOT BE FEASIBLE FOR COMPANIES THAT ARE COMPLETELY WITHOUT ACCESS TO OTHER FUNDS MARYLAND MULLS A MEASURE TO SPUR BLACK OWNERSHIP OF FRANCHISES TONY E FULTON A DELEGATE TO THE GENERAL ASSEMBLY HAS INTRODUCED A BILL THAT WOULD REQUIRE FRANCHISERS NEW TO THE STATE TO SELL MAJORITY STAKES IN AT LEAST 15 OF THEIR UNITS TO BLACKS WHO ARE DISADVANTAGED SOCIALLY OR ECONOMICALLY AS FRANCHISING SPREADS THE BILL ADDRESSES THE CONCERN THAT MANY AFRICANAMERICANS HAVE ABOUT SPREADING WEALTH THROUGHOUT THE STATE SAYS MR FULTON A BALTIMORE DEMOCRAT FRANCHISERS WOULD HAVE TO HELP THE DISADVANTAGED TO FINANCE FRANCHISES HE SAYS THE QUOTA WOULD HAVE TEETH A PENALTY EQUAL TO 10 OF ANNUAL GROSS INCOME FOR FRANCHISERS FAILING TO MEET IT AND THE BILL WOULD ALLOW FOR CRIMINAL FRAUD PENALTIES IF BLACKS WERE MERELY USED AS FRONTS FOR WHITE OWNERS THE MEASURE AROUSED OPPOSITION AT A HEARING LAST WEEK SAYS JOHN REYNOLDS EXECUTIVE VICE PRESIDENT OF THE IFA THE MAJOR TRADE GROUP FOR FRANCHISERS WE SHARE THE SAME GOAL WHICH IS TO CREATE MORE OPPORTUNITIES FOR MINORITIES BUT THERE ARE BETTER WAYS TO DO THAT THAN MANDATED PROGRAMS OR QUOTAS QUOTAS AND PENALTIES WOULD DISCOURAGE FRANCHISERS FROM ENTERING THE STATE THE IFA SAYS INSTEAD IT URGES STATE FINANCIAL INCENTIVES FOR FRANCHISERS AND MINORITY FRANCHISEES THE BILL MAY HAVE LITTLE CHANCE OF PASSAGE EVEN MR FULTON IS ALREADY TALKING ABOUT POSSIBLE AMENDMENTS TO MAKE HIS PROPOSED QUOTA VOLUNTARY NOT MANDATORY BRIEFS IN FEDERAL COURT IN TRENTON NJ THE FEDERAL TRADE COMMISSION HAS CHARGED TWO CARINSPECTION FRANCHISERS CAR CHECKERS OF AMERICA INC AND AUTO CHECKERS INTERNATIONAL INC WITH MULTIPLE VIOLATIONS SUCH AS THE ALLEGED FABRICATION OF FRANCHISEE SUCCESS STORIES BY CAR CHECKERS IN PITCHES TO POTENTIAL FRANCHISEES OFFICIALS OF THE BRIDGEWATER NJ COMPANIES COULDN'T BE REACHED TO COMMENT EXECUTIVES OF MANOR CARE INC'S CHOICE HOTELS INTERNATIONAL UNIT ARE UNDERTAKING A NATIONAL BUS TOUR WHICH THEY SAY WAS INSPIRED BY THE CLINTONGORE CAMPAIGN TO PRESS THE FLESH WITH FRANCHISEES 9302240017 930224 WHO'S NEWS SUNBEAMOSTER CO SUNBEAMOSTER CO PROVIDENCE RI THE BOARD OF THIS CONSUMER PRODUCTS CONCERN NAMED ITS FOUR OPERATING GROUP PRESIDENTS TO THE ADDITIONAL POSTS OF SENIOR VICE PRESIDENT THE NEW SENIOR VICE PRESIDENTS ARE JAMES J CLEGG PRESIDENT OF HOUSEHOLD PRODUCTS RICHARD D DAVIDSON PRESIDENT OF OUTDOOR PRODUCTS JAMES K THOMAS PRESIDENT OF SPECIALTY PRODUCTS AND RICHARD T WISSING PRESIDENT OF THE INTERNATIONAL GROUP THE COMPANY SAID HENRY R RAUZI CONTROLLER WAS ALSO NAMED A SENIOR VICE PRESIDENT 9302240016 930224 BUSINESS BRIEF DEERE & CO FIRM POSTS WIDENED LOSS FOR THE FISCAL FIRST QUARTER DEERE & CO POSTED A STEEPERTHANEXPECTED NET LOSS OF 276 MILLION OR 36 CENTS A SHARE ON A 2 DECLINE IN SALES IN ITS FISCAL FIRST QUARTER ENDED JAN 31 IN THE YEAREARLIER PERIOD DEERE HAD A LOSS OF 199 MILLION OR 26 CENTS A SHARE SALES IN THE LATEST QUARTER WERE 142 BILLION DOWN FROM 145 BILLION BUT THE MOLINE ILL MAKER OF FARM LAWN AND INDUSTRIAL EQUIPMENT PROJECTED SIGNIFICANT IMPROVEMENT IN ITS EQUIPMENT OPERATIONS FOR THE REST OF 1993 AND GUARDED OPTIMISM ABOUT FUTURE PROSPECTS THAT HELPED BUOY DEERE STOCK WHICH CLIMBED 275 TO 4825 IN FAIRLY HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN ITS FIRST QUARTER WHICH TRADITIONALLY IS A LOWPRODUCTION PERIOD FOR THE COMPANY ANALYSTS HAD ANTICIPATED THAT DEERE WOULD POST A LOSS OF ABOUT 21 CENTS A SHARE BUT THE COMPANY SAID ITS EQUIPMENT OPERATIONS INCURRED HIGHER LOSSES THIS YEAR BECAUSE OF VERY LOW FARM EQUIPMENT SALES ESPECIALLY OVERSEAS WHERE SUCH SALES FELL 3 FROM YEARAGO LEVELS 9302240015 930224 BUSINESS BRIEF MICHAEL BAKER CORP FIRM TO POST PROFIT GAIN BUT ITS RATING IS LOWERED MICHAEL BAKER CORP EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME AND REVENUE SURGED MORE THAN 25 WILLIAM G THOMAS CHIEF EXECUTIVE OFFICER SAID IN PITTSBURGH NET INCOME PER SHARE WAS ABOUT 20 CENTS WHICH IS LESS THAN IN THE 1991 FOURTH QUARTER BECAUSE THE COMPANY NOW HAS MORE SHARES OUTSTANDING BUT WAS IN LINE WITH ANALYSTS' EXPECTATIONS SEPARATELY PAINEWEBBER INC LOWERED ITS RATING ON THE DIVERSIFIED CONCERN TO NEUTRAL FROM ATTRACTIVE ARGUING THAT INFRASTRUCTURE SPENDING AND THE COMPANY'S ACQUISITION PLANS ARE DEVELOPING MORE SLOWLY THAN EXPECTED MICHAEL BAKER SHARES WERE TRADING AT 12 DOWN 1625 LATE YESTERDAY IN HEAVY AMERICAN STOCK EXCHANGE TRADING PAINEWEBBER LOWERED ITS 1993 EARNINGS ESTIMATES TO 72 CENTS A SHARE FROM 82 CENTS MICHAEL BAKER SAID IT IS COMFORTABLE WITH THE NEW FIGURE 9302240014 930224 SOCIETY FOR SAVINGS HOLDER SAYS HIGHER BIDS MAY YET COME BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL POTENTIAL BUYERS OF SOCIETY FOR SAVINGS BANCORP MAY BE WILLING TO OFFER MORE THAN THE MAXIMUM 20 A SHARE IN STOCK THAT BANK OF BOSTON CORP HAS AGREED TO PAY FOR IT ACCORDING TO A FILING BY A DISSIDENT SOCIETY SHAREHOLDER WITH THE SECURITIES AND EXCHANGE COMMISSION THE PROSPECT OF A BIDDING WAR OVER SOCIETY REFLECTS ITS IMPROVED EARNINGS DUE TO ITS PROFITABLE CONSUMER FINANCE BUSINESS AND THE GENERAL IMPROVEMENT IN THE BANKING CLIMATE IN NEW ENGLAND HEINE SECURITIES CORP A MUTUAL FUND ADVISER WHICH HOLDS ABOUT A 6 STAKE IN SOCIETY SAID IN THE SEC FILING THAT IT HAS RECEIVED FROM THIRD PARTIES INDICATIONS OF INTEREST IN TRANSACTIONS WITH SOCIETY WHICH WOULD YIELD SIGNIFICANTLY HIGHER VALUES FOR SHAREHOLDERS THAN THE OFFER FROM BANK OF BOSTON A HEINE SPOKESMAN DECLINED TO NAME THIRD PARTIES WHO HAVE EXPRESSED INTEREST IN ACQUIRING SOCIETY HEINE HAS SAID IT WILL OPPOSE THE BANK OF BOSTON OFFER WHEN SOCIETY HOLDS A SPECIAL HOLDERS MEETING MARCH 4 TO VOTE ON THE PROPOSED ACQUISITION THE HEINE SPOKESMAN SAID THIRD PARTIES INTERESTED IN SOCIETY AREN'T LIKELY TO MAKE BIDS BEFORE SOCIETY'S SPECIAL HOLDERS MEETING BECAUSE SUCH BIDS WOULD TRIGGER AN OPTION THAT ALLOWS BANK OF BOSTON TO PURCHASE ABOUT 24 MILLION SOCIETY SHARES AT 1297 EACH DILUTING OTHER SOCIETY HOLDERS' INTERESTS HOWEVER IF SOCIETY HOLDERS SCUTTLE THE PROPOSED PURCHASE AT THE SPECIAL MEETING NEXT WEEK THIRD PARTIES CAN BID FOR SOCIETY WITHOUT TRIGGERING THE LOCKUP OPTION HE ADDED IN HARTFORD CONN A SOCIETY FOR SAVINGS SPOKESMAN SAID WE HAVEN'T RECEIVED EXPRESSIONS OF INTEREST FROM OTHER PARTIES BANK OF BOSTON DECLINED COMMENT HEINE'S FAILURE TO IDENTIFY POTENTIAL THIRD PARTY BIDDERS HOWEVER MAY WEAKEN ITS ATTEMPT TO BLOCK BANK OF BOSTON GERARD CASSIDY A TUCKER ANTHONY INC ANALYST SAID THAT UNLESS A LEGITIMATE THIRD PARTY BID MATERIALIZES VERY QUICKLY SOCIETY'S HOLDERS PROBABLY WILL VOTE IN FAVOR OF BANK OF BOSTON SOCIETY HOLDERS ARE NOT LIKELY TO RISK WAITING FOR AN ALTERNATIVE PURCHASE WHICH MIGHT NOT BE COMPLETED FOR MONTHS HE ADDED BANK OF BOSTON AGREED TO BUY SOCIETY LAST FALL IN A STOCK SWAP UNDER WHICH SOCIETY HOLDERS WOULD RECEIVE 08 BANK OF BOSTON SHARE FOR EACH OF SOCIETY'S 119 MILLION SHARES OUTSTANDING UNDER THE AGREEMENT THE RATIO CAN BE ADJUSTED DEPENDING ON BANK OF BOSTON'S STOCK PRICE SO THAT SOCIETY HOLDERS RECEIVE A MAXIMUM OF 20 IN BANK OF BOSTON STOCK FOR EACH OF THEIR SHARES BASED ON YESTERDAY'S CLOSING PRICE OF 2475 A SHARE FOR BANK OF BOSTON'S STOCK ON THE NEW YORK STOCK EXCHANGE THE AGREEMENT VALUES EACH SOCIETY SHARE AT 1980 SOCIETY CLOSED YESTERDAY AT 1850 DOWN 25 CENTS IN OVERTHECOUNTER TRADING FOR THE FOURTH QUARTER SOCIETY EARNED 34 MILLION OR 28 CENTS A SHARE INCLUDING A GAIN OF 245000 COMPARED WITH A LOSS OF 589 MILLION OR 495 A SHARE A YEAR EARLIER THE YEAREARLIER LOSS INCLUDED A PROVISION FOR LOAN LOSSES OF 352 MILLION 9302240013 930224 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS BRUCE J RYAN VICE PRESIDENT AND CORPORATE CONTROLLER OF THIS COMPUTER MAKER WAS NAMED TO THE NEW POST OF VICE PRESIDENT FINANCIAL PROFESSIONAL AND PUBLIC SERVICES INDUSTRIES UNIT THE APPOINTMENT OF MR RYAN 49 YEARS OLD COMPLETES A TEAM OF EXECUTIVES HEADING DIGITAL'S NINE NEW BUSINESS UNITS IN HIS NEW POSITION MR RYAN WILL BE RESPONSIBLE FOR DIGITAL'S BUSINESS IN THE BANKING INSURANCE PUBLIC ADMINISTRATION SOFTWARE CONSULTING LEGAL ACCOUNTING ARCHITECTURE ENGINEERING CONSTRUCTION AND OTHER PROFESSIONAL SERVICES AREAS DIGITAL SAID 9302240012 930224 FOREIGN EXCHANGE YEN FALLS ON PROFITTAKING AS JAPAN SENDS A SIGNAL ON BANK INTERVENTION BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN LOST GROUND YESTERDAY AS PLAYERS SOLD THE CURRENCY TO LOCK IN PROFITS AGAINST A BROAD RANGE OF CURRENCIES DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16230 MARKS LITTLE CHANGED FROM 16235 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11708 YEN UP FROM 11640 YEN STERLING WAS TRADING AT 14530 DOWN FROM 14580 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11680 YEN AND AT 16212 MARKS WHAT YOU'RE SEEING TODAY IS PROFITTAKING IN THE CROSSES SAID BILL BERTHA CHIEF DEALER AT MELLON BANK NA IN PITTSBURGH DEALERS SAID VEILED THREATS FROM JAPANESE OFFICIALS OF CENTRAL BANK INTERVENTION TO STOP THE YEN'S RISE COMBINED WITH A NOTABLE SILENCE FROM US OFFICIALS ON THE ISSUE LED INVESTORS TO CASH IN THEIR YEN GAINS AGAINST THE DOLLAR AND THE MARK AFTER FALLING AS LOW AS 7150 YEN THE MARK REBOUNDED YESTERDAY LATE IN NEW YORK THE MARK WAS QUOTED AT 7212 YEN UP FROM 7168 YEN LATE MONDAY BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK LTD IN NEW YORK SAID THE YEN BUYING TRIGGERED BY TREASURY SECRETARY LLOYD BENTSEN'S CALL FRIDAY FOR A STRONGER YEN PLAYED ITSELF OUT EARLY YESTERDAY MR BENTSEN'S COMMENTS SPURRED SPECULATION THAT THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WHOSE FINANCE MINISTERS AND CENTRAL BANKERS ARE DUE TO MEET THIS WEEKEND IN LONDON MIGHT CALL FOR YEN APPRECIATION TO REDUCE JAPAN'S HUGE TRADE SURPLUS BY YESTERDAY SAID MR DOLAN THE MAJOR SPECULATIVE MOVES HAD TAKEN PLACE ADDING TO THE IMPETUS TO TAKE PROFITS ON THE YEN RISE DEALERS SAID WAS THE CHORUS OF COMMENTS FROM JAPANESE OFFICIALS CALLING THE YEN'S RISE TOO RAPID BANK OF JAPAN GOVERNOR YASUSHI MIENO SAID FLATLY THE MOVE HAD BEEN TOO FAST MEANWHILE FINANCE MINISTRY OFFICIALS INSISTING ON ANONYMITY OMINOUSLY NOTED THAT COORDINATED G7 ACTION ON CURRENCIES COULD HAPPEN AT ANY TIME ON THE US SIDE DEALERS SAID YEN BULLS WERE DISAPPOINTED WHEN MR BENTSEN DIDN'T ADDRESS CURRENCY ISSUES IN CONGRESSIONAL TESTIMONY ALTHOUGH CURRENCIES WEREN'T ON THE CONGRESSIONAL AGENDA MR BENTSEN'S SILENCE ON THE ISSUE TELLS ME THAT IT'S NOT A BURNING ISSUE ON HIS MIND NOW SAID MR DOLAN MR BERTHA OF MELLON BANK NOTED THAT THE DOLLAR'S TUMBLE HAD LEFT THE US CURRENCY OVERSOLD AND TECHNICAL INDICATORS CALLED FOR A MODEST REBOUND BUT DEALERS NOTED THERE WAS LITTLE TO ATTRACT INVESTORS TO THE DOLLAR AND ONLY A LATE TECHNICAL RALLY PULLED THE DOLLAR FROM INTRADAY LOWS INITIALLY THE DOLLAR WEAKENED AGAINST THE MARK AS INVESTORS TAKING PROFITS BOUGHT MARKS FOR YEN PUSHING THE MARK UP AGAINST THE DOLLAR DEALERS SAID LATER AN UNEXPECTED DROP IN US CONSUMER CONFIDENCE ENCOURAGED DOLLAR SELLING FOR MARKS PARTICIPANTS SAID CONSUMER CONFIDENCE TOOK THE MARKETS A LITTLE BIT BY SURPRISE SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON NA THE CONFERENCE BOARD REPORTED THAT ITS INDEX OF CONSUMER CONFIDENCE FELL TO 685 IN FEBRUARY FROM 767 IN JANUARY THE SURVEY ALSO SHOWED CONSUMER EXPECTATIONS FALLING SHARPLY GROWING OPTIMISM AMONG CONSUMERS HAD BEEN A MAJOR ENGINE OF THE RECOVERY MR DOLAN SAID AND YESTERDAY'S REPORT LED DEALERS TO QUESTION WHETHER THEY HAD EXAGGERATED THE ECONOMY'S STRENGTH IN ADDITION MS TIERNEY OF SHAWMUT BANK SAID THE CONTINUING RALLY IN THE US TREASURY MARKET WHICH HAS PUSHED LONGTERM INTEREST RATES TO RECORD LOWS HAS CURRENCY DEALERS NERVOUS FALLING US INTEREST RATES MAKE US ASSETS LESS ATTRACTIVE TO INTERNATIONAL INVESTORS AND THUS UNDERMINE THE DOLLAR ANDREW HODGE CHIEF CORPORATE DEALER AT BANK BRUSSELS LAMBERT IN NEW YORK SAID CONCERNS THAT PRESIDENT CLINTON'S DEFICITREDUCTION PROGRAM COULD REDUCE ECONOMIC GROWTH IN THE NEAR TERM WHILE ENCOURAGING TO BOND INVESTORS HAVE PUSHED THE DOLLAR LOWER BUT HE ADDED THAT THE RELATIVE STRENGTH OF US ECONOMIC GROWTH UNDERPINS THE DOLLAR WHILE YOU'VE GOT TO PAY ATTENTION TO THE DOLLARNEGATIVE IMPLICATIONS IT'S NOT GOING TO LAST ALL THAT LONG HE SAID MS TIERNEY NOTED THAT THE US ECONOMY REMAINS FURTHER ALONG THE ROAD TO RECOVERY THAN OTHER MAJOR ECONOMIES ADDING TO THE DOLLAR'S FIRM UNDERTONE 9302240011 930224 INTERNATIONAL GREEK BUSINESSES RUSH TO FILL DEMAND IN BULGARIA'S FRAGILE MARKET ECONOMY BY JOHN CARR SPECIAL TO THE WALL STREET JOURNAL ATHENS GREECE WHILE MOST OF THE BALKANS GRAPPLES WITH POLITICAL TURMOIL AND GREECE'S ECONOMY REMAINS STUCK IN RECESSION GREEK BUSINESS HAS FOUND AN OUTLET FOR ITS ENERGIES IN BULGARIA IN THE TWO YEARS SINCE BULGARIAN COMMUNISM GAVE WAY TO A FRAGILE MARKETBASED ECONOMY MORE THAN 400 GREEK BUSINESSES FROM INVESTMENT BANKERS TO SODA BOTTLERS HAVE RUSHED NORTH TO MEET AN UNTAPPED DEMAND FOR GOODS AND SERVICES WE SHOULD ALL GET IN THERE IT'S IN OUR NATIONAL INTEREST SAYS DIMITRIS DASKALOPOULOS MANAGING DIRECTOR OF DAIRY PRODUCTS FIRM DELTA SA AFTER SEVERAL YEARS OF SELLING MILK TO BULGARIA DELTA LAST YEAR NEGOTIATED A CONTRACT WITH AN UNIDENTIFIED BULGARIAN PARTNER TO MANUFACTURE AND DISTRIBUTE ICE CREAM IN BULGARIA THE CLIMAX OF A 12 BILLION DRACHMA 55 MILLION INVESTMENT MR DASKALOPOULOS SAYS HE EXPECTS THE BULGARIA VENTURE TO START TURNING A PROFIT IN TWO YEARS THE ENTREES ARE STILL THERE WAITING SAYS APOSTOLOS BARATSIS CORPORATE FINANCE MANAGER AT KOURI CAPITAL GREECE LTD A SUBSIDIARY OF USBASED KOURI CAPITAL GROUP LAST YEAR THE GREEK INVESTMENT BANK GOT BULGARIA'S PERMISSION TO DO VALUATIONS FOR PLANNED PRIVATIZATION PROJECTS ALONE AMONG THE YOUNG BALKAN MARKET ECONOMIES BULGARIA APPEARS TO HAVE NEW PRIVATIZATION AND FOREIGN INVESTMENT LAWS SECURELY IN PLACE ALTHOUGH THE MARKET IS IN ITS INFANCY GREEK BUSINESSMEN SAY IT IS FLEXIBLE AND DOESN'T REQUIRE A LOT OF MONEY UPFRONT BUT CAUTION IS STILL NECESSARY YOU HAVE TO BE CAREFUL WHAT DEALS YOU MAKE IN ALL EASTERN EUROPE SAYS KOURI CAPITAL'S MANAGING DIRECTOR ANTHONY ZIOUDAS THE BULGARIANS HAVE MADE IT CLEAR THEY EXPECT A GREAT DEAL FROM GREECE THE ONLY EUROPEAN COMMUNITY MEMBER WITH WHICH THEY SHARE A BORDER DELTA'S MR DASKALOPOULOS RECALLS A COCKTAILPARTY ENCOUNTER WITH THE BULGARIAN AMBASSADOR TO ATHENS WHO ASKED HIM WHY DELTA WAS THE ONLY GREEK COMPANY ACTIVE IN HIS COUNTRY BUT THE DIPLOMAT HAS SINCE SEEN GROWTH IN THE RANKS OF BULGARIA'S GREEK INVESTORS THERE IS A HUNGER UP THERE FOR GREEK ENTREPRENEURIAL ACTIVITY SAYS PANAYOTIS PAVLOPOULOS DEPUTY GOVERNOR OF THE BANK OF GREECE THE CENTRAL BANK ALONG WITH GREECE'S BIGGEST COMMERCIAL BANK THE NATIONAL BANK OF GREECE SAY THEY HAVE RECEIVED REQUESTS FROM BULGARIA TO TRAIN BANK STAFFERS BULGARIANS ARE THOUGHT TO TRUST THE GREEKS A FELLOW BALKAN PEOPLE MORE THAN OTHER EUROPEANS BECAUSE OF CULTURAL AND RELIGIOUS AFFINITIES THE GOVERNOR OF THE STATERUN ETVA BANK EFTYCHIA PYLARIOU HOPES THIS WILL GIVE GREECE AN EDGE IN EC BUSINESS WITH BULGARIA IT'S EASIER TO GO THROUGH GREECE RATHER THAN DIRECTLY TO THE BALKAN COUNTRIES SHE SAYS LAST YEAR ETVA BANK USING FUNDS FROM PHARE AN EC PROGRAM THAT OILS THE WHEELS OF EASTWEST EUROPEAN BUSINESS WAS THE MIDWIFE FOR AT LEAST 150 GREEKBULGARIAN JOINT VENTURES AND 400 MORE INVOLVING GREEK AND ROMANIAN INTERESTS THEY LACK EVERYTHING UP THERE MRS PYLARIOU SAYS COCACOLA CO ATLANTA OFFERS AN EXAMPLE OF HOW TO BREAK INTO AN EAST EUROPEAN MARKET BY WAY OF GREECE HELLENIC BOTTLING CO WHICH IS MORE COMMONLY KNOWN AS TRIA EPSILON SA AND HOLDS THE COCACOLA FRANCHISE IN GREECE HAS BEEN BOTTLING AND DISTRIBUTING COKE IN BULGARIA FOR 10 MONTHS AND HAS PLANS TO EXPAND ITS OPERATIONS BEYOND SOFIA BULGARIA'S CAPITAL TRIA EPSILON'S DEPUTY MANAGING DIRECTOR LOUKAS KOMIS SAID THE COMPANY IS TARGETING ANNUAL SALES OF AROUND 450 MILLION LITERS OF COKE WITHIN THE YEAR MEANWHILE ATHENSBASED IONIAN BANK IS CASTING ABOUT FOR A MIDDLEECHELON MANAGER WHO CAN SPEAK BULGARIAN IT HASN'T FOUND ONE YET BUT WE WILL SAYS GENERAL MANAGER MARINOS YANNOPOULOS THE BANK PLANS TO OPEN A REPRESENTATIVE OFFICE IN SOFIA THIS YEAR AND HOPES TO DEVELOP IT INTO A FULL BRANCH IN 1994 SO FAR ALL GREEK DRACHMAS EARNED IN BULGARIA HAVE BEEN GOING INTO AUSTRIAN BANKS SAYS MR YANNOPOULOS BUT NOT ALL ATHENS BANKS ARE SO OPTIMISTIC NIKOS NANOPOULOS GENERAL MANAGER OF EURO MERCHANT BANK SAYS HE BELIEVES INVESTING MUCH TIME AND MONEY IN THE STILLUNFAMILIAR ENVIRONMENT OF BULGARIA COULD BOOMERANG IT WOULD ABSORB A LOT OF THE MANAGEMENT TIME NEEDED FOR DOMESTIC PROBLEMS HE SAYS ALLUDING TO GREECE'S OWN FINANCIALSECTOR RESTRUCTURING SEVERAL GREEK COMPANIES ALSO HAVE SAID PAYMENT DELAYS HAVE PUT SOMETHING OF A DAMPER ON THE ENTHUSIASM FOR BULGARIA FOOD PROCESSING FIRM HAITOGLOU BROS BASED IN THE NORTHERN GREEK CITY OF THESSALONIKI HAD TO SHELVE PLANS TO DISTRIBUTE ITS BRAND OF HALVAH IN BULGARIA AFTER THE BULGARIANS COULDN'T COME UP WITH THE MONEY FOR THE FIRST SHIPMENTS 9302240010 930224 BOMBAY CO SALES UP 24 FORT WORTH TEXAS BOMBAY CO SAID ITS SALES FOR THE FOURWEEK PERIOD ENDED SUNDAY ROSE 24 TO 155 MILLION FROM 125 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR GREW 10 SALES AT THE HOME FURNISHINGS RETAILER FOR THE 34WEEK PERIOD ENDED SUNDAY INCREASED 26 TO 1526 MILLION FROM 1209 MILLION SAMESTORES SALES INCREASED 13 9302240009 930224 INTERNATIONAL QANTAS AIRWAYS RECAPITALIZATION SYDNEY AUSTRALIA THE AUSTRALIAN GOVERNMENT FINALIZED A 135 BILLION AUSTRALIANDOLLAR US932 MILLION RECAPITALIZATION OF QANTAS AIRWAYS AS PART OF THE PRIVATIZATION OF THE CARRIER FINANCE MINISTER RALPH WILLIS SAID MOST OF THE MONEY WILL BE USED TO CONVERT QANTAS'S A120 BILLION OF GOVERNMENTGUARANTEED DEBT INTO EQUITY WITH A FURTHER A150 MILLION OF NEW EQUITY CREATED THE GOVERNMENT HAS AGREED TO SELL 25 OF QANTAS TO BRITISH AIRWAYS PLC FOR A665 MILLION IT WILL SELL THE REMAINDER OF THE AIRLINE IN AN INITIAL PUBLIC OFFERING PROBABLY IN OCTOBER OR NOVEMBER THIS CAPITAL INJECTION COMPLETES ANOTHER INTEGRAL COMPONENT OF THE QANTAS SALE PROCESS MR WILLIS SAID 9302240008 930224 DSC TO REDEEM DEBENTURES DALLAS DSC COMMUNICATIONS CORP SAID IT WILL REDEEM 715 MILLION OF DEBENTURES MARCH 25 HOLDERS OF THE 775 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014 WILL RECEIVE EITHER 5376 SHARES OF DSC COMMON STOCK OR A CASH PAYMENT OF 106588 FOR EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES HELD THE CASH PAYMENT INCLUDES ACCRUED INTEREST OF 1163 IN OVERTHECOUNTER TRADING YESTERDAY DSC SHARES CLOSED AT 2450 A SHARE DOWN 875 CENTS THE TELECOMMUNICATIONS COMPANY ALSO SAID THAT FOR ANY DEBENTURES THAT AREN'T SURRENDERED FOR REDEMPTION DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SALOMON BROTHERS INC HAVE AGREED TO PURCHASE THE COMMON SHARES THAT WOULD HAVE BEEN ISSUED DSC SAID IT WILL USE PROCEEDS FROM THE STANDBY PURCHASE AGREEMENT TO FINANCE THE REDEMPTION OF ANY UNCONVERTED DEBENTURES DEBENTURE HOLDERS MAY ALSO SELL THE DEBENTURES DIRECTLY TO THE TWO SECURITIES FIRMS AT A PRICE OF 106663 PER 1000 PRINCIPAL AMOUNT DSC SAID 9302240007 930224 FTC EASES ANTITRUST RULES ON COMPANY DIRECTORSHIPS WASHINGTON THE FEDERAL TRADE COMMISSION SCALED BACK THE ANTITRUST RESTRICTIONS THAT BAR PEOPLE FROM SERVING AS OFFICERS OR DIRECTORS OF COMPETING COMPANIES THE UPDATING REQUIRED BY LAW TO TAKE THE EXPANDING ECONOMY INTO ACCOUNT MEANS THAT A PERSON CAN'T SERVE AS AN OFFICER OR DIRECTOR OF COMPETING COMPANIES IF ONE OF THE TWO HAS CAPITAL SURPLUS AND UNDIVIDED PROFITS GREATER THAN 1136769981 THE PREVIOUS FIGURE WAS 10 MILLION SALES OF THE COMPETING PRODUCTS AND SERVICES MUST EXCEED 113676998 BY ONE OF THE COMPANIES FOR THE BAN TO APPLY THE PREVIOUS FIGURE WAS 1 MILLION THE FTC ADJUSTS THE THRESHOLDS ANNUALLY BASED ON CHANGES IN THE GROSS NATIONAL PRODUCT 9302240006 930224 ECONOMY CLINTON PLANS REGULATORY INITIATIVES TO EASE THE CRUNCH ON BANK LENDING BY LUCINDA HARPER AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID HIS ADMINISTRATION SOON WILL ANNOUNCE A SERIES OF BANK REGULATORY INITIATIVES TO EASE THE CREDIT CRUNCH PARTICULARLY FOR SMALL BUSINESSES IN A SPEECH TO THE CHAMBER OF COMMERCE MR CLINTON SAID THE GOAL OF THE MEASURES IS TO TRY TO MAKE IT POSSIBLE FOR BANKS TO LOAN MONEY TO BUSINESSES AGAIN TO TRY TO RELEASE THE ENERGIES FOR THE OLDFASHIONED CHARACTER SMALLBUSINESS LOANS TO TRY TO REDUCE THE FEAR THAT A LOT OF BANKS HAVE THAT IF THEY MAKE SENSIBLE LOANS THE GOVERNMENT WILL COME DOWN ON THEM THE PRESIDENT DIDN'T GIVE ANY DETAILS BUT ADMINISTRATION OFFICIALS SAID THE CHANGES WHICH ARE BEING WORKED OUT WITH THE FEDERAL RESERVE BOARD AND OTHER BANK REGULATORS WILL FOCUS ON WAYS TO REDUCE THE PAPERWORK AND OTHER RULES THAT APPLY TO SMALLBUSINESS AND OTHER LOANS WE ARE LOOKING AT ALL OUR POLICIES TO SEE IF THEY IMPEDE SMALLBUSINESS LENDING A REGULATOR SAID THE NATURE OF OUR DISCUSSION IS ARE THE REGULATIONS TERRORIZING BANKS DO WE NEED DIFFERENT STANDARDS FOR SMALLBUSINESS LOANS IN ADDITION THE ADMINISTRATION AND REGULATORS ARE DRAFTING RULES ON THE TREATMENT OF INTERESTRATE RISK THAT COULD HELP PROMOTE SMALLBUSINESS LENDING PERHAPS BY MAKING IT SLIGHTLY LESS ATTRACTIVE FOR BANKS TO INVEST IN GOVERNMENT SECURITIES INSTEAD OF MAKING LOANS IT MAY TAKE REGULATORS SEVERAL MONTHS TO PUT NEW RULES AND PROCEDURES IN PLACE ANOTHER ELEMENT OF THE PROGRAM INVOLVES STEPPEDUP ENFORCEMENT OF VARIOUS BANKING RULES DESIGNED TO ENCOURAGE LOANS TO CONSUMERS THIS ISN'T A PACKAGE THAT APPLIES ONLY TO SMALL BUSINESS A TREASURY OFFICIAL SAID IT WILL MAKE IT EASIER FOR LENDERS TO LEND AND CORRECT A VARIETY OF OBSTACLES THAT WE THINK ARE OUTMODED INITIALLY THE ADMINISTRATION AND REGULATORS WILL CONCENTRATE ON ADMINISTRATIVE CHANGES THAT DON'T REQUIRE LEGISLATIVE ACTION OFFICIALS STRESSED THAT THEIR GOAL IS TO SPUR LENDING WITHOUT WEAKENING REGULATIONS AIMED AT ENSURING THE SAFETY AND SOUNDNESS OF BANKS AS A RESULT THE ADMINISTRATION CURRENTLY DOESN'T PLAN TO ASK CONGRESS TO MODIFY A 1991 BANKING LAW THAT THE BANKING INDUSTRY CONTENDS IMPOSED RIGID RULES THAT ARE CHOKING OFF LENDING IN TESTIMONY TO THE HOUSE BANKING COMMITTEE YESTERDAY FED CHAIRMAN ALAN GREENSPAN HINTED THAT THE PACKAGE MAY EASE PAPERWORK BURDENS AND CREDITSCREENING REQUIREMENTS FOR CERTAIN SMALL LOANS MADE BY HEALTHY BANKS AT A MINIMUM ALLOWING WELLCAPITALIZED BANKS TO GET BACK INTO THE BUSINESS OF CHARACTER LOANS STRIKES ME AS NO THREAT TO THE SAFETY AND SOUNDNESS OF THE BANKING SYSTEM HE SAID MR GREENSPAN ACKNOWLEDGED THAT A WAVE OF NEW BANK REGULATIONS PASSED IN THE WAKE OF THE SAVINGSANDLOAN CRISIS HAS MADE IT PROHIBITIVELY COSTLY FOR BANKS TO MAKE LOANS TO SMALL BUSINESSES IN PARTICULAR MR GREENSPAN CRITICIZED IMPEDIMENTS TO WHAT WE USED TO CALL CHARACTER LOANS WHERE YOU COULD BASICALLY MAKE A LOAN TO AN INDIVIDUAL OF A MODEST AMOUNT ON YOUR KNOWLEDGE OF THE INDIVIDUAL AND YOUR FULL EXPECTATION OF IT BEING REPAID WITHOUT GOING THROUGH A NUMBER OF FORMAL DOCUMENTS WITHOUT COLLATERAL WITHOUT APPRAISALS OF VARIOUS DIFFERENT THINGS ACCORDING TO FED STUDIES OVER THE LAST DECADE THE AMOUNT OF PAPERWORK REQUIRED TO MAKE A SMALLBUSINESS LOAN HAS DOUBLED AS EXAMINERS HAVE REQUIRED BANKERS TO DOCUMENT EVERY ASPECT OF THE LOAN ONE OF THE MEASURES THE FED HAS BEEN DISCUSSING WOULD ALLOW WELLCAPITALIZED BANKS TO REDUCE THE PAPERWORK REQUIRED ON SOME SMALLBUSINESS LOANS SUCH A CHANGE COULD HAVE A HUGE IMPACT CURRENTLY MORE THAN 90 OF THE NATION'S BANKS AND NEARLY 70 OF THE THRIFTS MEET THE DEFINITION OF WELLCAPITALIZED INSTITUTIONS THEIR TOTAL CAPITAL IS AT LEAST 10 OF THEIR RISKWEIGHTED ASSETS THEIR CORE OR TIER 1 CAPITAL EQUALS 6 OR RISKWEIGHTED ASSETS AND THEIR RATIO OF TOTAL CAPITAL TO ASSETS IS AT LEAST 5 THE CAPITAL STANDARDS ARE RISKADJUSTED IN THAT THEY REQUIRE BANKS TO HOLD MORE CAPITAL AGAINST RISKY ASSETS SUCH AS COMMERCIAL REAL ESTATE LOANS THAN AGAINST LESS RISKY LOANS SUCH AS HOME MORTGAGES REGULATORS ARE DRAFTING RULES THAT WOULD REQUIRE BANKS TO ASSESS THE RISK OF SHARP INTERESTRATE FLUCTUATIONS WHEN THEY CALCULATE THEIR CAPITAL REQUIREMENTS FED AND TREASURY OFFICIALS BELIEVE THE NEW RULES CAN BE WRITTEN IN A WAY THAT INCREASES THE CAPITAL REQUIRED AGAINST LONGTERM ASSETS SUCH AS MORTGAGES AND MORTGAGEBACKED SECURITIES THIS WOULD MAKE IT RELATIVELY LESS COSTLY TO HOLD SHORTERTERM BUSINESS LOANS IN HIS TESTIMONY TO THE BANKING COMMITTEE MR GREENSPAN SAID THE FED AND THE CLINTON ADMINISTRATION ARE LOOKING FOR WAYS TO BREAK THE BACK OF THIS CREDIT CRUNCH IN ORDER TO HELP SMALL BUSINESSES AND RESTORE THE FINANCIAL VITALITY OF THIS COUNTRY SMALL BUSINESSES HISTORICALLY ARE THE SOURCE OF EMPLOYMENT GROWTH BUT THEIR RECENT INABILITY TO SECURE FUNDS TO EXPAND AND BUY EQUIPMENT CRIMPED THAT GROWTH HE SAID MR GREENSPAN ACKNOWLEDGED THAT IT MIGHT NOT BE EASY TO SPUR BANK LENDING REFERRING TO THE BUSH ADMINISTRATION'S EFFORTS TO PERSUADE REGULATORS TO LOWER BARRIERS TO LENDING THE FED CHIEF SAID WE'VE TRIED A NUMBER OF DIFFERENT VEHICLES WHICH HAVE NOT BEEN VERY SUCCESSFUL BANKERS CLAIM THAT CONGRESS AND BANK EXAMINERS ARE SO AFRAID OF BANK FAILURES THAT THEY HAVE IMPOSED COSTLY AND RIGID LENDING RULES THE BURDEN IS PARTICULARY HEAVY ON SMALL COMMUNITY BANKS MR GREENSPAN SAID BANKERS SAY THAT LENDING WON'T PICK UP UNTIL THE CURRENT CLIMATE OF FEAR ABATES INDUSTRY OFFICIALS ARE WORRIED BY REPORTS THAT MR CLINTON MAY APPOINT THEODORE BARREAUX AN OFFICIAL AT THE GENERAL ACCOUNTING OFFICE TO A SEAT ON THE FIVEMEMBER FEDERAL DEPOSIT INSURANCE CORP BANKERS BLAME THE GAO FOR ENCOURAGING CONGRESS TO INCLUDE TOUGH NEW AUDITING AND MANAGEMENT STANDARDS IN THE 1991 BANKING LAW GAO OFFICIALS SAY THE PROVISIONS PROVIDE IMPORTANT PROTECTIONS AGAINST LOSSES TO THE BANK DEPOSIT INSURANCE FUND MR CLINTON HASN'T YET NAMED EVEN AN FDIC CHAIRMAN MR GREENSPAN SAID YESTERDAY THAT THE ECONOMY HAS SHOWN IMPORTANT IMPROVEMENTS BUT HE ADDED THAT IT'S TOO SOON TO SAY THAT WE ARE IN A SENSE MOVING FORWARD IN A SELFPERPETUATING RECOVERY SO LONG AS COMPANIES CONTINUE TO RESTRUCTURE THEIR BALANCE SHEETS SMALLBUSINESS LOANS REMAIN HARD TO GET AND THE DEFENSE INDUSTRY CONTINUES TO SHRINK THE FED CHIEF SAID IT'S IMPORTANT FOR THE PRESIDENT AND CONGRESS TO ADDRESS THE BUDGET DEFICIT QUICKLY THE LONGER WE TAKE TO DEAL WITH THE ISSUE THE LONGER IT WILL TAKE TO COME TO GRIPS WITH IT HE SAID MR GREENSPAN ADDED THAT IF MR CLINTON'S ECONOMIC PLAN HELPS NARROW THE BUDGET DEFICIT ONE COULD EXPECT LONGTERM INTEREST RATES AND INTERMEDIATE INTEREST RATES AND MOST SPECIFICALLY MORTGAGE RATES TO FALL MR GREENSPAN HAS CALLED THE PRESIDENT'S PLAN CREDIBLE YESTERDAY FEDERAL RESERVE BOARD GOV SUSAN PHILLIPS ALSO SAID THE PRESIDENT'S PLAN WAS BASED ON SOUND ECONOMIC ASSUMPTIONS DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9302240005 930224 AT&T WILL PURCHASE NEW SHARES OF MCCAW FOR ABOUT 400 MILLION NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL PURCHASE 145 MILLION NEWLY ISSUED SHARES OF MCCAW CELLULAR COMMUNICATIONS INC FOR ABOUT 400 MILLION AS THE TWO COMPANIES CONTINUE NEGOTIATING A LARGER ALLIANCE AT&T'S PURCHASE AT A PRICE OF 27625 A SHARE RESULTS FROM MCCAW'S EXERCISE OF AN EARLIER PUTOPTION AGREEMENT WITH AT&T THAT OPTION GAVE MCCAW OF KIRKLAND WASH THE RIGHT TO SELL NEWLY ISSUED CLASS A SHARES TO AT&T THE OPTION WAS TO EXPIRE AT THE END OF THIS MONTH THE PURCHASE PROVIDES AN UPFRONT CASH INFUSION FOR DEBTHEAVY MCCAW WHICH HAD A 1992 LOSS OF 3647 MILLION OR 203 A SHARE ON REVENUE OF 174 BILLION AS PREVIOUSLY REPORTED AT&T AND MCCAW SAID LAST NOVEMBER THAT THEY WERE IN TALKS FOR AT&T TO BUY A 33 STAKE IN MCCAW FOR ABOUT 38 BILLION AT&T WOULD ACQUIRE THE STAKE IN TWO PIECES BY BUYING 476 MILLION NEWLY ISSUED CLASS A SHARES FOR 42 EACH OR ABOUT 2 BILLION AND BY BUYING BRITISH TELECOMMUNICATIONS PLC'S 22 STAKE IN MCCAW FOR 49 A SHARE OR ABOUT 18 BILLION MCCAW THE NATION'S LARGEST PROVIDER OF CELLULAR PHONE SERVICE WOULD USE THE 2 BILLION FROM THE SALE OF NEW SHARES TO AT&T TO REDUCE ITS DEBT WHICH CURRENTLY TOTALS ABOUT 55 BILLION AT&T AND MCCAW SPOKESMEN SAID YESTERDAY THAT THE 145 MILLIONSHARE PURCHASE COULD BE APPLIED TOWARD THE LARGER TRANSACTION WHICH IS STILL BEING NEGOTIATED A MCCAW SPOKESMAN ALSO SAID THAT IF THE LARGER TRANSACTION IS COMPLETED AT&T WOULD PAY THE DIFFERENCE ON THE OPTION SHARES TO BRING THE PRICE TO 42 A SHARE THE SHARE PURCHASE UNDER YESTERDAY'S ANNOUNCEMENT GIVES AT&T THE RIGHT TO NAME ONE MCCAW DIRECTOR IT WOULD ULTIMATELY GET THREE OF THE 15 BOARD SEATS IF IT COMPLETES THE LARGER TRANSACTION 9302240004 930224 PNC TO ACQUIRE TRAVELERS UNIT PITTSBURGH PNC BANK CORP SEEKING BROADER CONSUMER MARKETING AVENUES AGREED TO ACQUIRE MASSACHUSETTS CO A UNIT OF TRAVELERS CORP INVOLVED IN RESIDENTIAL FIRST MORTGAGES AND HOME EQUITY LINES OF CREDIT FOR ABOUT 52 MILLION MOODY'S INVESTORS SERVICE INC CITING PNC'S IMPROVED ASSET QUALITY AND BALANCE SHEET IN THE PAST TWO YEARS SAID IT PLACED PNC'S DEBT RATINGS UNDER REVIEW FOR POSSIBLE UPGRADE MOODY'S ALSO PLACED MASSACHUSETTS CO'S RATING FOR LONGTERM DEBT DEPOSIT OBLIGATIONS AND LETTERS OF CREDIT UNDER REVIEW FOR POSSIBLE UPGRADE 9302240003 930224 BUSINESS BRIEF ANTHEM ELECTRONICS INC RESULTS ARE EXPECTED TO FALL IN FIRST PERIOD FROM FOURTH ANTHEM ELECTRONICS INC SAID IT EXPECTS FIRSTQUARTER RESULTS TO BE BELOW ITS FOURTHQUARTER NET INCOME OF 79 MILLION OR 64 CENTS A SHARE AND REVENUE OF 150 MILLION IN THE YEARAGO FIRST QUARTER THE SAN JOSE CALIF COMPUTER PRODUCTS DISTRIBUTOR POSTED NET OF 76 MILLION OR 62 CENTS A SHARE ON REVENUE OF 1261 MILLION ANTHEM SAID ITS SALES AND MARGINS HAVE BEEN HURT BY A DROP IN THE PRICES OF CERTAIN PRODUCTS THAT IT DISTRIBUTES SUCH AS DISK DRIVE PRODUCTS AND MICROPROCESSORS 9302240002 930224 COKE TALKS WITH COCACOLA ENTERPRISES ABOUT DISTRIBUTION IN OVERSEAS MARKET BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO SAID IT HAS BEGUN TALKS WITH COCACOLA ENTERPRISES INC ITS LARGEST DOMESTIC BOTTLER ABOUT DISTRIBUTING COKE IN THE FASTGROWING AND LUCRATIVE OVERSEAS MARKET THE PUSH ABROAD REPRESENTS A BOLD AND RISKY MOVE FOR COCACOLA ENTERPRISES IN ITS SIXYEAR EXISTENCE IT HASN'T BEEN ABLE TO GENERATE CONSISTENT PROFITS IN THIS COUNTRY BUT THE COMPANIES ARE HOPING THAT COCACOLA ENTERPRISES WHICH HAS HAD TO STEP UP EFFICIENCY IN THE HIGHLY COMPETITIVE US MARKET CAN APPLY SOME OF ITS SKILLS ABROAD WHERE BOTTLERS GENERALLY USE OLDER EQUIPMENT AND SALES TECHNIQUES FOR COCACOLA ENTERPRISES THE HIGHER GROWTH RATES IN SOME INTERNATIONAL MARKETS COULD PROVIDE ENOUGH OF A SALES BOOST TO ENSURE PROFITABILITY FOR COKE THE VENTURE COULD STRENGTHEN ITS BIG DOMESTIC BOTTLER WHICH HAS TO BATTLE RIVAL PEPSICO INC EVERY DAY ON THE HOMEFRONT AND CAPTURE PROFITS COKE NOW LOSES TO INDEPENDENT BOTTLERS ABROAD THOSE PROFITS WOULD FLOW BACK TO COKE THROUGH ITS 44 OWNERSHIP IN COCACOLA ENTERPRISES COKE ALREADY HAS ITS OWN STAKE IN THE OVERSEAS BOTTLING BUSINESS IN PLACES LIKE THE UNITED KINGDOM AND AUSTRALIA STILL COCACOLA ENTERPRISES' OVERSEAS PLANS STRUCK SOME STOCK ANALYSTS AS TRICKY AND PERHAPS PREMATURE THOUGH COCACOLA ENTERPRISES' MANAGEMENT TEAM IS STRONG AT OPERATIONS SAID JOSEPH DOYLE AN ANALYST WITH SMITH BARNEY LET'S GET PROFITABILITY UP TO RESPECTABLE LEVELS IN THE US FIRST ADDED DAVID GOLDMAN AN ANALYST WITH OPPENHEIMER & CO THE MOVE COULD DILUTE MANAGEMENT'S ATTENTION FROM THE US A COCACOLA ENTERPRISES SPOKESWOMAN RESPONDS WE VIEW THE OPPORTUNITY AS A POSITIVE ONE COCACOLA ENTERPRISES ALSO SAID THAT DONALD R KEOUGH ITS 66YEAROLD CHAIRMAN WILL RETIRE APRIL 20 COCACOLA ENTERPRISES' DIRECTORS WILL CHOOSE A NEW CHAIRMAN AT THE NEXT BOARD MEETING IN APRIL A SPOKESWOMAN SAID LAST WEEK MR KEOUGH ANNOUNCED HIS RETIREMENT ALSO IN APRIL AS PRESIDENT AND CHIEF OPERATING OFFICER OF COCACOLA IN THE MEANTIME M DOUGLAS IVESTER THE COCACOLA SENIOR VICE PRESIDENT IN CHARGE OF COKE'S NORTH AMERICAN OPERATIONS HAS BEEN NOMINATED TO THE BOARD OF COCACOLA ENTERPRISES MR IVESTER 45 WAS INSTRUMENTAL IN THE CREATION OF COCACOLA ENTERPRISES FORMED BY COMBINING SEVERAL LARGE BOTTLERS IN 1986 COCACOLA ENTERPRISES SO FAR HAS OPERATED SOLELY IN THE US BOTTLERS BUY CONCENTRATE FROM COKE MIX IT WITH CARBONATED WATER PACKAGE IT AND DISTRIBUTE THE FINISHED PRODUCT TO RETAILERS AND OTHER OUTLETS COCACOLA ENTERPRISES ACCOUNTS FOR 53 OF PACKAGED COCACOLA VOLUME IN THE US FACED WITH AN UNEVEN PROFIT RECORD COCACOLA ENTERPRISES MERGED WITH JOHNSTON COCACOLA BOTTLING GROUP INC ANOTHER BOTTLER IN DECEMBER 1991 AND CHANGED ITS TOP OFFICERS BUT WITH VOLUME DOWN SLIGHTLY LAST YEAR THE COMBINED COMPANIES STILL POSTED A LOSS FOR 1992 IN A STATEMENT YESTERDAY MR KEOUGH SAID THAT THE NEW MANAGERS AT COCACOLA ENTERPRISES HAVE MADE SIGNIFICANT MOVES IN THE PAST YEAR TO MAKE PRODUCTION AND DISTRIBUTION MORE EFFICIENT ACTIONS THAT ARE INCREASING PROFITABILITY AS A RESULT HE SAID IT IS BENEFICIAL FOR BOTH COMPANIES TO EXPLORE INTERNATIONAL OPPORTUNITIES COKE AND COCACOLA ENTERPRISES DECLINED TO DISCUSS POSSIBLE OVERSEAS MARKETS OR FINANCING FOR ACQUISITIONS BUT ANALYSTS EXPECT INITIAL MARKETS TO BE CLOSE TO THE US MEXICO COKE'S BIGGEST VOLUME MARKET ABROAD MAY BE ON THE SHORT LIST THEY SAY FOR ONE THING COKE'S MEXICAN BOTTLER FOMENTO ECONOMICO MEXICANO SA SAID LAST WEEK THAT IT HAS HAD TALKS WITH COKE ABOUT SELLING A LARGE MINORITY STAKE IN FEMSA'S SOFT DRINK DIVISION COKE WOULDN'T COMMENT 9302240001 930224 BOARD OF CONTRIBUTORS BUDGET LEDGERDEMAIN BY HERBERT STEIN IN THE TIME OF EMPEROR VESPASIAN THE GOVERNMENT PROVIDED URINALS IN THE STREETS OF ROME AND CHARGED A FEE FOR THEIR USE THE EMPEROR SEEKING TO REDUCE HIS BUDGET DEFICIT DECIDED TO RAISE THE FEE HIS SON A FINICKY FELLOW ASKED THE EMPEROR WHETHER THE ADDITIONAL RECEIPTS SHOULD BE CONSIDERED A TAX INCREASE OR A REDUCTION OF GOVERNMENT EXPENDITURE FOR THE PROVISION OF THE FACILITIES TO THIS THE EMPEROR MADE HIS FAMOUS REPLY IN LATIN THE ONLY LANGUAGE HE SPOKE NON OLET THE LITERAL TRANSLATION IS IT DOESN'T SMELL BUT THE MEANING IS IT'S ALL MONEY AND IT DOESN'T MATTER WHICH SIDE OF THE LEDGER YOU PUT IT ON I AM REMINDED OF THIS STORY BY THE CURRENT FUROR OVER THE DIVISION OF PRESIDENT CLINTON'S DEFICITREDUCTION PACKAGE BETWEEN TAX INCREASES AND EXPENDITURE CUTS THE CLINTON PEOPLE SEEM INTENT ON SHOWING THAT THE EXPENDITURE CUTS ARE EQUAL TO THE TAX INCREASES OR NEARLY SO THE OPPOSITION SEEMS INTENT ON SHOWING THAT THE TAX INCREASES ARE SAY FIVE TIMES AS LARGE AS THE EXPENDITURE CUTS THIS IS ALL VERY PECULIAR BECAUSE WE DON'T KNOW WHETHER SOME MAJOR ITEMS SHOULD BE CALLED TAX INCREASES OR EXPENDITURE CUTS AND WE DON'T KNOW WHAT PRACTICAL DIFFERENCE THESE RATIOS MAKE THE LEADING CASE IS THE INCLUSION OF A LARGER SHARE OF SOCIAL SECURITY BENEFITS IN THE TAXABLE INCOME OF THE BENEFICIARY SOME PEOPLE WANT TO CALL THIS AN EXPENDITURE CUT OTHERS WANT TO CALL IT A TAX INCREASE THERE IS NO ANSWER TO THE LABELING QUESTION BECAUSE THE TERMS TAX INCREASE AND EXPENDITURE CUT ARE ARBITRARY AND NO SIGNIFICANT CONCLUSION FOLLOWS FROM WHAT NAME WE APPLY THE NEW TREATMENT OF SOCIAL SECURITY BENEFITS WILL NOT BE GOOD IF WE CALL IT AN EXPENDITURE CUT OR BAD IF WE CALL IT A TAX INCREASE WHEN I PAY THE ADDITIONAL AMOUNT NEXT YEAR IT WILL NOT MATTER TO ME WHETHER I HAVE LESS MONEY BECAUSE MY TAX HAS BEEN RAISED OR BECAUSE MY BENEFIT HAS BEEN CUT IT'S ALL MONEY THAT I WON'T HAVE BUT SOCIAL SECURITY IS ONLY THE MOST OBVIOUS CASE THE ADMINISTRATION PROPOSES TO LIMIT DOCTORS' FEES IN ORDER AS IT SAYS TO CUT EXPENDITURES BUT COULDN'T THAT ALTERNATIVELY BE CALLED A TAX INCREASE ON DOCTORS IS THE FREEZE ON FEDERAL SALARIES AN EXPENDITURE CUT OR A TAX ON FEDERAL EMPLOYEES OR LOOK AT THE OTHER SIDE OF THE COIN THE ADMINISTRATION PROPOSES TO GIVE A TAX CREDIT FOR CERTAIN KINDS OF INVESTMENT IS THAT A TAX REDUCTION OR AN ADDITIONAL EXPENDITURE TO SUBSIDIZE A CHOSEN KIND OF INVESTMENT SUPPOSE AS MANY HAVE SUGGESTED THAT A CAP SHOULD BE PLACED ON THE AMOUNT OF EMPLOYERPROVIDED HEALTH INSURANCE THAT IS EXCLUDABLE FROM TAXABLE INCOME WOULD THAT BE A TAX INCREASE OR THE REDUCTION OF GOVERNMENT EXPENDITURE THAT NOW PROMOTES EXPENSIVE HEALTH INSURANCE THE BASIC FACT IS THAT THE GOVERNMENT IS INVOLVED IN PAYING MONEY OUT TO PEOPLE AND TAKING MONEY FROM PEOPLE THE DEFICITREDUCING EFFORT IS AN EFFORT TO REDUCE THE NET OF THIS THE EXCESS OF PAYMENTS OUT OVER PAYMENTS IN BY REDUCING THE PAYMENTS OUT AND/OR INCREASING THE PAYMENTS IN NO REALISTIC STATEMENT ABOUT THE CONSEQUENCES OR RELATIVE MERITS OF REDUCING PAYMENTS OUT OR INCREASING PAYMENTS IN CAN BE MADE WITHOUT SPECIFYING THE CONDITIONS OF THE PAYMENTS THAT IS UNLESS WE KNOW TO WHOM THE PAYMENTS ARE TO BE MADE OR FROM WHOM THE PAYMENTS ARE TO BE RECEIVED AND ON WHAT CONDITIONS WE KNOW NOTHING SIGNIFICANT ABOUT THE TRANSACTIONS WHETHER WE CALL THEM TAX INCREASES OR EXPENDITURE CUTS IT WILL BE SAID THAT TAX INCREASES DEPRESS THE ECONOMY IT IS NOW CONVENTIONAL WISDOM IN SOME CIRCLES THAT THE 1990 TAX INCREASES CAUSED THE RECESSION OF 1990 AS IF WE DIDN'T HAVE ENOUGH OTHER EXPLANATIONS THIS ARGUMENT RUNS IN PART ON THE DEMAND SIDE IF YOU TAX MONEY AWAY FROM PEOPLE THEY WILL SPEND LESS AND THAT WILL DEPRESS THE ECONOMY BUT IF THE GOVERNMENT SPENDS LESS THAT ALSO DEPRESSES TOTAL DEMAND IN EITHER CASE THE NEGATIVE EFFECT ON DEMAND MAY BE OFFSET BY THE POSITIVE EFFECT OF A SMALLER BUDGET DEFICIT ON THE AVAILABILITY AND COST OF CAPITAL WE USED TO HAVE A THEOREM IN ECONOMICS THAT AN EQUAL CUT OF SPENDING AND REVENUES RESULTED IN A NET DECLINE OF DEMAND WE MAY NOT BE SO SURE OF THAT ANYMORE BUT WE ARE A LONG WAY FROM KNOWING THE REVERSE A MORE IMPORTANT ARGUMENT IS MADE ON THE SUPPLY SIDE IT IS SAID THAT TAX INCREASES HAVE BAD INCENTIVE EFFECTS PROBABLY ALL TAXES HAVE INCENTIVE EFFECTS BUT NOT ALL INCENTIVE EFFECTS ARE BAD SUPPOSE TO TAKE MY FAVORITE EXAMPLE WE WERE TO CAP THE AMOUNT OF HEALTH INSURANCE THAT IS DEDUCTIBLE FROM TAXABLE INCOME THAT WOULD BE A TAX INCREASE AND IT WOULD HAVE THE DESIRABLE EFFECT OF REDUCING THE INCENTIVE TO TAKE SO MUCH OF INCOME IN THE FORM OF GENEROUS HEALTHINSURANCE POLICIES ALTHOUGH THE APPLICATION OF THE ENERGY TAX TO ENERGY USED IN BUSINESS IS IN MY OPINION A MISTAKE ONE CAN EASILY ARGUE THAT THE ENERGY TAX AS APPLIED TO CONSUMERS WOULD HAVE GOOD INCENTIVE EFFECTS THE PROPOSED INVESTMENT TAX CREDIT IS I SUPPOSE A TAX CUT BUT IT IS NOT AT ALL CLEAR THAT ITS INCENTIVE EFFECTS ARE GOOD EXPENDITURE CUTS ALSO HAVE INCENTIVE EFFECTS SOME GOOD AND SOME BAD WILL THE PROPOSED CONTROLS ON DOCTORS' FEES PART OF THE EXPENDITURECUTTING PROGRAM HAVE GOOD OR BAD INCENTIVE EFFECTS I DON'T KNOW ONE CAN EASILY IMAGINE DOCTORS HAVING AN INCENTIVE TO PRESCRIBE MORE PROCEDURES IF THE PRICE PER PROCEDURE IS CURTAILED AND THAT WOULD PROBABLY BE A BAD INCENTIVE EFFECT ON THE OTHER HAND ECONOMISTS HAVE BEEN ARGUING FOR DECADES CORRECTLY I BELIEVE THAT CUTTING GOVERNMENT EXPENDITURES FOR FARM PRICE SUPPORTS WOULD HAVE BENEFICIAL INCENTIVE EFFECTS AND I SUPPOSE OR HOPE THAT INCREASING EXPENDITURES TO IMPROVE HEAD START WOULD IMPROVE INCENTIVES SURELY WE SHOULD LOOK AT THE INCENTIVE EFFECTS OF WHAT THE GOVERNMENT DOES BUT IT IS UNREALISTIC TO START WITH THE PRESUMPTION THAT TAX INCREASES HAVE WORSE INCENTIVE EFFECTS THAN EXPENDITURE CUTS WITHOUT REFERENCE TO THE PARTICULAR TAXES AND EXPENDITURES THE MOST GENERAL ARGUMENT IS THAT WE SHOULD OPPOSE TAX INCREASES AND FAVOR EXPENDITURE CUTS BECAUSE BIG GOVERNMENT IS A BAD THING I DON'T SUPPOSE MANY PEOPLE REALLY BELIEVE THAT WITH RESPECT TO ALL FUNCTIONS OF GOVERNMENT BUT I DO NOT WANT TO ENTER THAT ARGUMENT HERE IT IS RELEVANT HOWEVER TO ASK WHETHER TOTAL EXPENDITURE IS THE PROPER MEASURE OF WHAT WE FEAR ABOUT BIG GOVERNMENT ESPECIALLY IF WE DON'T KNOW WHAT AN EXPENDITURE IS WILL THE GOVERNMENT BE BIGGER AND MORE DANGEROUS IF WE CALL THE TAXATION OF SOCIAL SECURITY BENEFITS A TAX INCREASE RATHER THAN AN EXPENDITURE CUT SURELY NOT IS THE GOVERNMENT BIGGER AND MORE DANGEROUS WHEN IT IS SPENDING 200 BILLION A YEAR FOR INTEREST ON THE DEBT THAN 25 YEARS AGO WHEN IT WAS SPENDING 30 BILLION NOT ON THAT ACCOUNT I WOULD OFFER THE PROPOSITION THAT THE SIZE OF GOVERNMENT AND ITS DANGER ARE MUCH BETTER MEASURED BY THE CHARACTER OF WHAT IT DOES AND ESPECIALLY BY THE SELECTIVITY OF WHAT IT DOES THAN BY THE AGGREGATE NUMBERS IN THE BUDGET THE GOVERNMENT CAN COLLECT HUNDREDS OF BILLIONS THROUGH A BROADBASED GENERAL INCOME TAX WITH LITTLE DISTORTION OF THE ECONOMY OR POWER OVER INDIVIDUALS BUT IT CAN BE MUCH MORE DANGEROUS IF IT COLLECTS LESS MONEY IN A SYSTEM WITH PREFERENCES FOR THE OIL INDUSTRY AND THE REAL ESTATE INDUSTRY AND THE FORESTRY INDUSTRY AND SMALL BUSINESS ETC IT CAN MORE SAFELY SPEND HUNDREDS OF BILLIONS OF DOLLARS IN SOCIAL SECURITY BENEFITS THAN IT CAN SPEND 20 BILLION IN HIGHWAY FUNDS THAT IT WILL AWARD AT ITS DISCRETION TO PARTICULAR AREAS AND CONTRACTORS THOSE CONCERNED ABOUT THE SIZE OF GOVERNMENT SHOULD TRY TO APPLY MORE SOPHISTICATED ANALYSIS THAN REPETITION OF THE BUDGET TOTALS I WOULD LIKE IF POSSIBLE TO AVOID BEING LABELED A SUPPORTER OF ALL TAX INCREASES AND ENEMY OF ALL EXPENDITURE CUTS I DO NOT LIKE SOME OF MR CLINTON'S TAX INCREASES I OPPOSE RAISING THE CORPORATE PROFITS TAX AND THE APPLICATION OF THE ENERGY TAX TO BUSINESS USE I REGARD THE SURCHARGE ON QUARTERMILLIONAIRES AS OFFENSIVE DEMAGOGIC BRAVURA BUT I WOULD FAVOR AN ENERGY TAX APPLIED TO CONSUMERS AT A HIGHER RATE AND CAPPING THE DEDUCTIBILITY OF HEALTH INSURANCE BENEFITS ON THE EXPENDITURE SIDE I WOULD BE FOR A SUBSTANTIAL CUT IN THE MEDICARE SUBSIDY I AM SKEPTICAL OF THE BRIDE'S BOUQUET OF INVESTMENT GIVEAWAYS THAT THE PRESIDENT TOSSED TO THE CHEERING CONGRESS ON FEB 17 BUT MY MAIN POINT IS NOT ABOUT SUCH THINGS I AM TRYING TO URGE CONSIDERATION OF THE REALITIES OF THE BUDGET PROPOSAL RATHER THAN PARTISAN HARANGUES EXCLUSIVELY CONSISTING OF SHIBBOLETHS A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9302240152 930122 INTERNATIONAL WORLD ECONOMY CAN AN OLD STATE DEPARTMENT LEARN NEW TRADE TRICKS FROM CLINTON'S MAN BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE STATE DEPARTMENT FINALLY WILL HAVE AN AMERICA DESK AND I'LL BE SITTING RIGHT BEHIND IT THAT'S THE PROMISE OF WARREN CHRISTOPHER WHEN DESCRIBING HIS TOP PRIORITY AS PRESIDENT CLINTON'S SECRETARY OF STATE ONE REASON HE CONTENDS US DIPLOMATS SPEND TOO LITTLE TIME PROMOTING US BUSINESS IN THE RUGGED GLOBAL COMPETITION FOR SALES CONTRACTS AND INVESTMENTS THERE HAS BEEN THIS LONG TRADITION IN AMERICAN EMBASSIES THAT THEY PREFER POLITICAL ISSUES TO ASSISTING AMERICAN BUSINESSMEN AND I THINK WE HAVE TO CHANGE THAT CONCEPT MR CHRISTOPHER SAID DURING SENATE HEARINGS ON HIS NOMINATION AND HE VOWED TO MAKE SURE IT HAPPENS FOR THE SIGNAL IS GOING TO HAVE TO COME FROM THE PRESIDENT AND ME IF IT'S GOING TO BE CARRIED OUT IN EMBASSIES AROUND THE WORLD MR CHRISTOPHER WANTS HIS MISSIONS AS AGGRESSIVE AS THOSE OF JAPAN FRANCE AND BRITAIN WHEN NATIONAL COMMERCIAL INTERESTS ARE AT STAKE ABROAD HE SAYS THEY MUST NOT BE SHY OR BASHFUL ABOUT ROLLING UP THEIR SLEEVES AND GETTING IN AND HELPING WHEN US COMPANIES HAVE PROBLEMS A GREAT IDEA BUT HARDLY NEW AND MAKING IT AN EFFECTIVE PLAN FACES OLD OBSTACLES THAT NO ONE YET HAS OVERCOME MR CHRISTOPHER MUST ATTACK BOTH BUREAUCRATIC BIASES WITHIN THE STATE DEPARTMENT AND POLICIES THAT CONSTRAIN IT PAST EFFORTS HAVE FIZZLED AND THERE'S NO GUARANTEE THE CLINTON TEAM WILL PROVE MORE RESOLUTE I'M SKEPTICAL SAYS ONE US AMBASSADOR WHO EMBRACES THE THEORY BUT RETAINS DEEP DOUBTS ABOUT THE PRACTICE BY CONTRAST OTHER NATIONS' FOREIGN MINISTRIES OFTEN BOOST THEIR COMPANIES' INTERESTS INTERNATIONALLY WITH GREAT PERSISTENCE THAT'S PARTLY BECAUSE THEY REPRESENT SOCIETIES MORE INSTINCTIVELY ATTUNED TO FOREIGN TRADE ONES THAT LACK THE HUGE NATIONAL MARKET WHICH HAS LONG SUSTAINED US BUSINESS AND LIMITED ITS INTEREST IN OVERSEAS COMMERCE IT IS OBVIOUS THAT FOR US EXPORTS ARE VITAL WE WOULDN'T EXIST WITHOUT THEM SAYS A DUTCH DIPLOMAT BUT NOW THE US TOO NEEDS FOREIGN BUSINESS TO PROSPER AND US BUSINESSMEN SOMETIMES TALK WISTFULLY OF HOW OTHER DIPLOMATS SERVE AS ASSISTANT SALESMEN THEY COLLECT MARKET DATA GET IMPORTANT DOORS OPENED AND APPLY MUSCLE WHEN IT HELPS FOR EXAMPLE BONN SUBSIDIZES GERMAN CHAMBERS OF COMMERCE AROUND THE WORLD EIGHT OFFICES IN THE US TO PROMOTE GERMAN BUSINESS THE FRENCH ARE ESPECIALLY ADEPT AT TURNING FRIENDLY POLITICAL TIES INTO PROFITABLE BUSINESS RELATIONSHIPS AND OTHER NATIONS OFTEN LINK AID PROGRAMS TO THEIR COMMERCIAL INTERESTS WE PROMOTE DEMOCRACY THE JAPANESE FINANCE BRIDGES WHICH ARE BUILT BY JAPANESE COMPANIES NOTES A US BUSINESS PERSON THIS DIPLOMATIC ROLE CAN GO FURTHER IF MORE THAN ONE JAPANESE COMPANY IS COMPETING AGAINST OTHER FOREIGN COMPANIES FOR IMPORTANT BUSINESS IN SAY THAILAND THEIR AMBASSADOR MAY CALL THEM IN FOR A TALK UNDER HIS GUIDANCE EXPLAINS A JAPANESE DIPLOMAT THESE RIVALS DECIDE WHO HAS THE BEST CHANCE AND THE OTHERS DROP OUT THEN A SINGLE SHARPENED JAPANESE BID AGAINST THE REST OF THE WORLD GOES FORWARD AND IT OFTEN WINS FOR AMERICANS THAT COULD BE BOTH UNSEEMLY AND ILLEGAL NOT THAT ALL US DIPLOMATS ARE INDIFFERENT TO BUSINESS OUTGOING SECRETARY OF STATE LAWRENCE EAGLEBURGER LONG AGO ORDERED AMBASSADORS TO BECOME SALESMAN NO 1 IN THE COUNTRIES WHERE THEY SERVE ROBERT DRISCOLL PRESIDENT OF THE USASEAN BUSINESS COUNCIL FINDS US AMBASSADORS IN THE SIX SOUTHEAST ASIAN NATIONS HE COVERS ESPECIALLY HELPFUL BUT THE RECORD IS UNEVEN ONE RETIRED US DIPLOMAT NOW IN BUSINESS SAYS MR EAGLEBURGER'S ORDER MADE A REAL DIFFERENCE BUT ANOTHER FOUND IT MORE LIKE JUST ANOTHER MEMO GOING AROUND PART OF THE PROBLEM IS STATE DEPARTMENT TRADITION FOR DECADES WAGING THE COLD WAR WAS THE MAIN JOB DOING THAT WELL WAS THE FAST CAREER TRACK TO AMBASSADORSHIPS AND OTHER TOP SPOTS THE ECONOMICS BUREAU BY CONTRAST SEEMED A WAYSTATION TO NOWHERE SPECIAL THE UNDERSECRETARY FOR ECONOMIC AFFAIRS DOESN'T EVEN CONTROL THE ECONOMICS BUREAU OR MUCH ELSE NO ONE AT STATE WORRIED MUCH ABOUT HOW US BUSINESSES WERE DOING AROUND THE WORLD IN THE CARTER YEARS THE DEPARTMENT SURRENDERED ITS FOREIGN COMMERCIAL SERVICE TO THE COMMERCE DEPARTMENT WHICH HAS NEVER BEEN QUITE SURE HOW TO RUN IT SEVERAL OTHER AGENCIES ALSO DABBLE IN OVERSEAS BUSINESS WITH NONE CLEARLY IN CHARGE AND THERE ARE POLICY PROBLEMS OTHER GOVERNMENTS CAN OFFER MORE GENEROUS FINANCING FOR THEIR EXPORTS AND ARE FREER TO SELL GOODS THAT MIGHT SERVE MILITARYRELATED PURPOSES THE COMPLEX DUAL USE ISSUE CAN IRAN SPEND 7 BILLION FOR BOEING JETS FOR EXAMPLE OR MUST IT BUY THE EUROPEAN AIRBUS FEW LIMIT TRADE FOR HUMAN RIGHTS REASONS THESE AREN'T TRIVIAL RULES BUT SOME COULD BE REVISED SO MR CHRISTOPHER HAS A TOUGH TASK AND IT WILL TEST SERIOUSLY HIS VOW TO RUN A FOREIGN POLICY THAT ADVANCES AMERICA'S ECONOMIC SECURITY AS VIGOROUSLY AS EARLIER ONES FOUGHT THE COLD WAR SEE RELATED LETTER LETTERS TO THE EDITOR RAISE EXPORTS INCREASE PROSPERITY WSJ FEB 24 1993 9301220116 9302240118 930129 THE AMERICAS SUCCESSFUL LATIN ECONOMIES SHOW THE GAIN BEFORE THE PAIN BY DAVID MALPASS PRESIDENT CLINTON LLOYD BENTSEN ROBERT REICH ET AL TAKE NOTE LATIN POLITICIANS WHO HAVE RAISED GASOLINE AND CONSUMPTION TAXES AND CUT GOVERNMENT SUBSIDIES MERELY TO REDUCE THEIR BUDGET DEFICITS HAVE FAILED BOTH POLITICALLY AND ECONOMICALLY HOWEVER WHEN LATIN LEADERS UNLEASH THE GROWTH POTENTIAL OF ALL LEVELS OF THE ECONOMY THROUGH LIBERALIZED FISCAL POLICIES BUILT ON A SOLID CURRENCY THEY GET PUBLIC SUPPORT AND ACHIEVE LASTING CHANGE LIKE THE INCOMING ADMINISTRATION LATIN AMERICA IS SEEKING A SWEEPING CHANGE IN ITS POLITICAL ECONOMY IN A VERY SHORT PERIOD OF TIME LATIN AMERICA ADOPTED DEMOCRACY AS ITS PREFERRED FORM OF GOVERNMENT AND MARKETBASED ECONOMICS AS ITS PREFERRED ECONOMIC SYSTEM IN COUNTRIES SUCH AS MEXICO ARGENTINA EL SALVADOR AND CHILE GOVERNMENTS PROMOTED POLICIES THAT LED TO AN ALMOST IMMEDIATE IMPROVEMENT IN THE GROWTH POTENTIAL OF THE AVERAGE CITIZEN HOWEVER IN VENEZUELA ECUADOR BRAZIL NICARAGUA AND OTHERS THE CONSENSUS MOVEMENT TOWARD A MARKETORIENTED ECONOMY WAS SLOWED BY LEADERS WHO FOCUSED ON DEFICIT REDUCTION WITHOUT FIRST DECLARING A PROGRAM DESIGNED TO IMPROVE THE PEOPLE'S ECONOMIC SITUATION MOST OF LATIN AMERICA'S UNSUCCESSFUL ATTEMPTS AT ECONOMIC CHANGE RELY ON AUSTERITY THE NO PAIN NO GAIN RECIPE IN THIS RECIPE COURAGEOUS POLITICIANS USE UP THEIR POLITICAL CAPITAL GETTING THEIR PEOPLE TO ACCEPT ECONOMIC SLOWDOWN TAX INCREASES AND PUBLIC SECTOR LAYOFFS IT'S HARD ENOUGH TO SELL THAT MESSAGE IN DEVELOPED COUNTRIES LIKE THE US BUT IN POOR LATIN COUNTRIES WHERE MERE SURVIVAL IS A CHALLENGE FOR MOST IT CAN BE A POLITICAL DEATH SENTENCE LEADERS WHO PROMOTE THESE POLICIES ARE LEFT WITH POLITICAL INSTABILITY A DEEP RECESSION AND HIGHER NOT LOWER DEFICITS NEVERTHELESS MANY ECONOMISTS LAUD THIS POLICY OF IMPOVERISHMENT AND URGE LATIN POLITICIANS TO STAY THE COURSE AS THEIR POPULARITY ERODES AND PER CAPITA INCOMES SINK FURTHER THE EXAMPLES BUILD A CLEAR CASE THAT DEFICIT REDUCTION MUST BE KEPT IN THE CONTEXT OF IMPROVED LIVING STANDARDS WHILE DEFICITS DO IMPEDE GROWTH AND SHOULD BE REDUCED SOUND DEFICIT REDUCTION PROGRAMS MUST BE BUILT ON CREATING AN ENVIRONMENT FOR PRIVATE SECTOR GROWTH DEFICIT REDUCTION CANNOT BE PURSUED AS AN END IN ITSELF WHEN PRESIDENT CARLOS SALINAS SET ABOUT REVOLUTIONIZING THE MEXICAN ECONOMY HE FIRST PROMISED AND ACHIEVED ECONOMIC STABILITY AND THE PROSPECT OF RAPID GROWTH TAXES ON PRODUCTION CAPITAL FORMATION INTERNATIONAL TRADE AND INTERNAL COMMERCE WERE RADICALLY REDUCED ALMOST IMMEDIATELY THE ECONOMY BEGAN TO EXPAND AND TAX REVENUES INCREASED RAPIDLY THIS GAVE GOVERNMENT THE REVENUE IT NEEDED TO PURSUE FARREACHING EFFORTS AT MODERNIZING MEXICO'S INFRASTRUCTURE AND REACHING OUT TO THE MOST IMPOVERISHED MOST NOTABLY THROUGH THE MULTIBILLIONDOLLAR SOLIDARITY PROGRAM THE EXPANDING ECONOMY AND INCREASED SOCIAL SPENDING GAVE PRESIDENT SALINAS THE POPULARITY HE NEEDED TO ENTER INTO A TRADE AGREEMENT WITH THE US EMBARK ON AGRICULTURAL REFORM AND SELL OFF STATE ENTERPRISES ONLY AFTER THE FRUITS OF THIS GROWTH STRATEGY WERE HARVESTED WAS SIGNIFICANT REVENUE ALLOCATED TO RETIRE MEXICO'S INTERNAL AND EXTERNAL DEBTS IF MEXICO'S ORIGINAL POLICY OBJECTIVE HAD BEEN MERELY DEFICIT REDUCTION RATHER THAN IMPROVED LIVING STANDARDS THESE RADICAL CHANGES MIGHT NEVER HAVE OCCURRED SIMILARLY ARGENTINA'S BUDGET DEFICIT HAS FALLEN SHARPLY NOT BECAUSE THE GOVERNMENT IMPOSED DEFICIT REDUCTION AND AUSTERITY ON ITS PEOPLE BUT BECAUSE IT IMPOSED A SOUND CURRENCY AND VERY RAPID GROWTH YET CONVENTIONAL WISDOM INCREASINGLY ATTRIBUTES ITS SUCCESS TO DEFICIT REDUCTION A REPORT IN THE FINANCIAL TIMES EARLIER THIS MONTH CLAIMED THAT VIRTUAL ELIMINATION OF THE BUDGET DEFICIT HAS ALREADY CUT INFLATION TO LESS THAN 20 A YEAR BUT ARGENTINA'S BUDGETBALANCING REVENUE SURGE BEGAN IN APRIL 1991 JUST AFTER IT EMBARKED ON ITS GROWTH POLICY BASED ON A SOUND FREELY EXCHANGEABLE CURRENCY COMBINED WITH DRAMATIC FISCAL INCENTIVES FOR GROWTH INCOME TAX RATES WERE LOWERED TO 20 ON INCOMES UP TO 60000 WITH NO TAX ON CAPITAL GAINS ARGENTINA'S TREASURY INCOME ROSE FROM UNDER 400 MILLION MONTHLY BETWEEN JANUARY AND MARCH 1991 TO 618 MILLION IN APRIL AND NEARLY 1 BILLION PER MONTH IN 1992 BEGINNING IN JUNE 1991 THE BUDGET WAS PRACTICALLY IN BALANCE IN THE MEANTIME ARGENTINA'S RAPID GROWTH BEGAN ALMOST PRECISELY IN APRIL 1991 THE RESULT OF A STABILIZATION PROGRAM RELIANT ON GROWTH NOT ON ECONOMIC CONTRACTION IN CONTRAST BRAZIL HAS SPENT NEARLY THREE YEARS BLINDLY PURSUING DEFICIT REDUCTION WHILE ITS ECONOMY CONTINUES TO SINK BRAZIL'S JANUARY 1992 STANDBY ARRANGEMENT WITH THE IMF AGREED ON ANOTHER VIGOROUS ATTACK ON THE DEFICIT AS THE PRIMARY THRUST OF ECONOMIC REFORM THE ECONOMIC COMMISSION ON LATIN AMERICA NOTED IN ITS SEPTEMBER 1992 REPORT THAT BRAZIL'S FEDERAL GOVERNMENT CUT BACK SHARPLY ON EXPENDITURE IN RESPONSE TO A DECREASE IN ITS REVENUES AND MANAGED TO GENERATE A SURPLUS AS A RESULT OF COURSE DURING THIS ATTACK ON THE DEFICIT THE GOVERNMENT WAS PRINTING SO MUCH MONEY THAT INFLATION STAYED ABOVE 20 A MONTH YET THE JAN 6 EDITORIAL IN THE FINANCIAL TIMES CLAIMED MODESTLY THAT ALTHOUGH HE MAY NOT REALISE IT FISCAL REFORM SHOULD BE BRAZIL'S NEW PRESIDENT ITAMAR FRANCO'S PRIORITY ONLY THROUGH SUCH REFORM WILL THE BUDGET DEFICIT BE CLOSED INFLATION SUBDUED INTEREST RATES LOWERED AND CONFIDENCE RESTORED NO MENTION OF THE IMPORTANCE OF MONETARY POLICY IN FUELING INFLATION OR OF REDUCING SUBSIDIZED CREDIT TO FARMERS STATES AND STATE ENTERPRISES IN VENEZUELA PERU AND ECUADOR GOVERNMENTLED AUSTERITY PROGRAMS THE BLIND PURSUIT OF DEFICIT REDUCTION WITH LITTLE REGARD TO GROWTH HAS BROUGHT FALLING POLITICAL FORTUNES ECONOMIC HARDSHIPS ON THE PEOPLE AND A FALTERING DESIRE TO CONTINUE WITH ECONOMIC CHANGE PERU'S REAL GDP MAY HAVE FALLEN AS MUCH AS 3 IN 1992 WITH INFLATION STILL ABOVE 40 IN SPITE OF A SUCCESSFUL DEFICIT REDUCTION EFFORT ECUADOR'S NEW PRESIDENT ENTERED OFFICE LAST AUGUST WITH 90 PUBLIC APPROVAL HE IMMEDIATELY SET BOUT FIXATING ON HIS GOVERNMENT'S TOOHIGH DEFICIT BY INCREASING GASOLINE TAXES AND DEVALUING THE CURRENCY HIS POPULARITY PLUMMETED MUCHNEEDED ECONOMIC REFORM PLANS WERE SHELVED AND GROWTH REMAINED STAGNANT BEFORE THE NEW US ADMINISTRATION TURNS THE HELM POINT BLANK AT DEFICIT REDUCTION IT SHOULD TELL THE AVERAGE AMERICAN EXACTLY WHAT THE BENEFIT WILL BE ABOVE ALL COUNTRIES END UP WITH SMALLER DEFICITS WHEN THEIR ECONOMIES EXPAND NOT WHEN THEY CONTRACT SO DEFICIT REDUCTION MEASURES SHOULD PROMOTE GROWTH MR MALPASS WAS DEPUTY ASSISTANT SECRETARY OF STATE FOR LATIN AMERICA DURING THE BUSH ADMINISTRATION SEE RELATED LETTER LETTERS TO THE EDITOR DEFICIT CUTTING PLANS NOT ALWAYS MONSTERS WSJ FEB 24 1993 9301290148 9302230171 930223 MARKETING & MEDIA STRANGE BEDFELLOWS INSPIRE ANOTHER PAIR IN THE BOOK WORLD RIVAL PUBLISHERS WILL TEAM UP FOR THE CAMPAIGN TELLALL BY CARVILLE AND MATALIN BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RIVAL POLITICAL STRATEGISTS JAMES CARVILLE AND MARY MATALIN HAVE SIGNED A BOOK DEAL AS BIZARRE AS THEIR OWN RELATIONSHIP THEY WILL BE COPUBLISHED BY ARCHRIVAL PUBLISHERS SIMON & SCHUSTER AND RANDOM HOUSE THE HATFIELDS AND THE MCCOYS WILL BE PUBLISHING CAPULET AND MONTAGUE SAYS ROBERT BARNETT THE WASHINGTON LAWYER WHO SERVED AS THE COUPLE'S LITERARY AGENT MR CARVILLE WAS BILL CLINTON'S CHIEF POLITICAL STRATEGIST WHILE MS MATALIN WAS A KEY CAMPAIGN STRATEGIST FOR GEORGE BUSH AND THEIR ROMANTIC INVOLVEMENT ADDED A SORT OF KATHARINE HEPBURNSPENCER TRACY TWIST TO THE CAMPAIGN THE TWO ANNOUNCED SHORTLY AFTER THE ELECTION THAT THEY PLANNED AN UNCONVENTIONAL HE SAIDSHE SAID CAMPAIGN TELLALL BILLED AS A MORE INTIMATE LOOK AT THE CAMPAIGN THAN AT THEIR LOVE LIFE THE BOOK IS DUE NEXT SPRING ALTHOUGH THE PRECISE PRICE WASN'T DISCLOSED THE ADVANCE IS SAID TO BE SLIGHTLY MORE THAN 750000 FOR WORLD RIGHTS BESTSELLER BONUSES AND OTHER EXTRAS COULD PUSH THE PRICE TO 1 MILLION INSIDERS SAY THE DEAL IS SAID TO BE UNPRECEDENTED BECAUSE ALL EDITING MARKETING AND PUBLISHING OPERATIONS WILL BE DONE JOINTLY AND BOTH PUBLISHERS' NAMES WILL APPEAR ON THE SPINE THE HARDCOVER WILL BE DISTRIBUTED BY RANDOM HOUSE A UNIT OF ADVANCE PUBLICATIONS INC AND THE PAPERBACK WILL BE DISTRIBUTED BY SIMON & SCHUSTER A UNIT OF PARAMOUNT COMMUNICATIONS INC THIS IS AS WACKY AND WILD AS THE IDEA THAT JAMES AND I ARE DOING THIS BOOK TOGETHER SAYS MS MATALIN AFTER THE HONEYMOON WE'LL BE BACK AT WAR SAYS HARRY EVANS RANDOM HOUSE'S PUBLISHER THIS IS A UNIQUE BOOK THAT REQUIRED A UNIQUE RESPONSE 9302230170 930223 INTERNATIONAL JAPANESE STEEL EXPORTS TOKYO JAPANESE EXPORTS OF STEEL ROSE 57 IN DECEMBER FROM A YEAR EARLIER THE JAPAN IRON AND STEEL FEDERATION SAID JAPAN'S STEEL EXPORTS TOTALED 19 MILLION METRIC TONS IN 1992 UP 53 FROM 1991 A METRIC TON IS 22046 POUNDS 9302230169 930223 TEXACO BUYS NORTH SEA INTEREST LONDON TEXACO INC SAID IT PURCHASED A 75 INTEREST IN A CERTAIN PROSPECT IN THE NORTH SEA FROM UNION JACK OIL PLC THE PROSPECT UNITED KINGDOM CONTINENTAL SHELF BLOCK 29/5B IS ABOUT 150 MILES EAST OF SCOTLAND THE BLOCK CONTAINS THE FRANKLIN PROSPECT AND AN EXTENSION OF THE ELGIN PROSPECT WHICH ARE BOTH HIGH PRESSURE GAS/CONDENSATE DISCOVERIES SAID TEXACO TERMS WEREN'T DISCLOSED