OTTAWA CANADIAN RETAIL SALES TOTALED A SEASONALLY ADJUSTED 1567 BILLION CANADIAN DOLLARS US1244 BILLION IN DECEMBER UNCHANGED FROM NOVEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID RETAIL SALES HAVE SHOWN A RISING TREND SINCE MARCH 1992 ALTHOUGH AT A DECELERATING RATE SINCE JUNE STATISTICS CANADA SAID THE TREND DATA ELIMINATE IRREGULAR MONTHTOMONTH MOVEMENTS RETAIL SALES IN 1992 TOTALED C18453 BILLION A 18 INCREASE FROM 1991 9302230167 930223 BARRETT RESOURCES STOCK OFFER DENVER BARRETT RESOURCES CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 175 MILLION COMMON SHARES THE OIL AND GAS EXPLORATION CONCERN SAID IT WOULD USE THE PROCEEDS TO PAY FOR ITS DEVELOPMENT DRILLING ACTIVITIES CURRENTLY BARRETT RESOURCES HAS 97 MILLION SHARES OUTSTANDING THE MANAGING UNDERWRITERS OF THE OFFERING ARE SALOMON BROTHERS INC AND PETRIE PARKMAN & CO 9302230166 930223 ITALIAN CONSUMER PRICES MILAN ITALY'S CONSUMER PRICES ROSE ABOUT 44 IN FEBRUARY FROM A YEAR EARLIER ACCORDING TO PROVISIONAL COSTOFLIVING STATISTICS FROM SEVERAL MAJOR CITIES THE FEBRUARY INFLATION RATE IF CONFIRMED BY THE NATIONAL STATISTICS BUREAU ISTAT AT THE BEGINNING OF NEXT MONTH WOULD BE SLIGHTLY UP FROM THE 43 INFLATION RATE REGISTERED IN JANUARY PRICES ROSE AN AVERAGE 03 IN FEBRUARY FROM JANUARY WHICH IS SLIGHTLY DOWN FROM THE 04 INCREASE RECORDED LAST MONTH THE INFLATION DATA ARE BASED ON PRICE SURVEYS TAKEN AT THE MIDDLE OF THE MONTH 9302230165 930223 INTERNATIONAL WESTPAC BANKING SETS CUTBACKS WELLINGTON NEW ZEALAND WESTPAC BANKING CORP SAID THAT AS MANY AS 100 POSITIONS IN ITS NEW ZEALAND HEADQUARTERS OPERATIONS WILL BE MADE REDUNDANT OVER THE NEXT FOUR MONTHS THE JOBS WILL DISAPPEAR THROUGH A COMBINATION OF ATTRITION AND LAYOFFS A WESTPAC SPOKESMAN SAID WESTPAC WHICH IS BASED IN AUSTRALIA HAS SAID IT WILL REDUCE ITS WORK FORCE THERE 20 IN THE WAKE OF RECENT LOSSES WESTPAC'S NEW ZEALAND OPERATIONS SAW AN 8 RISE IN OPERATING PROFIT IN THE YEAR ENDED SEPT 30 WESTPAC HAS MORE THAN 4000 EMPLOYEES IN NEW ZEALAND 9302230164 930223 BUSINESS BRIEF RTZ'S KENNECOTT TO EXPAND COAL ASSETS WITH PURCHASE OF SUN'S CORDERO MINING SALT LAKE CITY KENNECOTT CORP WHOSE APPETITE FOR COAL WASN'T APPEASED BY LAST WEEK'S 470 MILLION PURCHASE OF NERCO INC SAID IT WILL BUY THE CORDERO MINING CO FROM SUN CO FOR 1205 MILLION THE PURCHASES WOULD MAKE KENNECOTT A UNIT OF RTZ CORP IN LONDON ONE OF THE FIVE LARGEST US COAL PRODUCERS KENNECOTT SAID THE CORDERO MINE PRODUCED 133 MILLION TONS OF COAL IN 1992 AND HAS THE CAPACITY TO PRODUCE 17 MILLION TONS A YEAR THE POWDER RIVER BASIN PROPERTY HAS A RESERVE OF 385 MILLION TONS OF COAL COMBINED WITH THE NERCO ACQUISITION THE PURCHASE WILL GIVE KENNECOTT A TOTAL ANNUAL COAL PRODUCTION OF ABOUT 32 MILLION TONS A YEAR AND RESERVES OF ABOUT A BILLION TONS BEFORE LAST WEEK KENNECOTT AND RTZ HAD NO DIRECT INVESTMENT IN COAL KENNECOTT THE THIRD LARGEST COPPER PRODUCER IN THE US SAID IT WILL PAY CASH FOR CORDERO FROM EXISTING CREDIT LINES THE TRANSACTION REQUIRES GOVERNMENT APPROVAL SUN CO IN PHILADELPHIA SAID IT IS FOCUSING ON ITS GASOLINE CHEMICALS AND LUBRICANTS BUSINESSES FOLLOWING A RECENT RESTRUCTURING AND BEGAN SEEKING BUYERS OF ITS COAL PROPERTIES LAST FALL LAST WEEK A SPOKESMAN FOR KENNECOTT SAID THE COMPANY AND ITS UNITS WANT TO DIVERSIFY IN ITS MINING BUSINESSES WHICH INCLUDE COPPER AND GOLD HE ADDED THAT KENNECOTT BELIEVES THE POWDER RIVER BASIN COAL MINED BY NERCO AND CORDERO WILL HAVE SOME ADVANTAGES UNDER THE RECENT CLEAN AIR ACT AMENDMENTS BECAUSE IT IS LOW IN SULFUR THE DEALS FOLLOW PRESIDENT CLINTON'S APPARENT DECISION TO SEEK BROADBASED ENERGY TAX INCREASES INSTEAD OF IMPOSING A NATIONAL CARBON TAX INCREASE ONE OF THE OPTIONS THAT HAD BEEN DISCUSSED A CARBON TAX WHICH WOULD HAVE BEEN THE ABSOLUTE WORST CASE FOR THE COAL INDUSTRY ACCORDING TO THE NATIONAL COAL ASSOCIATION PROBABLY WOULD HAVE MADE COAL INVESTMENT LESS ATTRACTIVE WE'RE ALL RELIEVED THAT IT'S NOT A DIRECT CARBON TAX THE BROADER ENERGY TAX CERTAINLY WOULD BE ONE OF THE APPROACHES THAT LEVELS THE PLAYING FIELD SO COAL CAN COMPETE SAID GREGORY BOYCE A KENNECOTT SPOKESMAN 9302230163 930223 INTERNATIONAL JAPANESE FIRMS ARE TURNING TO BOND MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S FLEDGLING CORPORATE BOND MARKET IS TAKING OFF THIS MONTH 500 BILLION YEN 46 BILLION IN DOMESTIC CORPORATE BONDS INCLUDING UTILITY ISSUES WILL HAVE HIT THE MARKET ACCORDING TO NIKKO SECURITIES CO THAT'S UP FROM 275 BILLION YEN IN JANUARY AND 150 ABOVE THE MONTHLY RATE A YEAR AGO WE'RE GETTING MUCH BUSIER SAYS SEIICHIRO KURAHASHI A MEMBER OF NIKKO'S PRIMARY MARKETS SECTION CORPORATE ISSUANCES IN MARCH HE SAYS MIGHT NOT BE A RECORD BUT SHOULD TOP 400 BILLION YEN JAPAN IS ALSO IN THE MIDST OF A RALLY IN GOVERNMENT BONDS THOUGH BLUECHIP CORPORATE ISSUES STILL ATTRACT INSTITUTIONAL INVESTORS THE CORPORATE BONDS PAY ABOUT ONE PERCENTAGE POINT ABOVE THE CURRENT 415 YIELD OF GOVERNMENT BONDS WHAT'S MORE FOREIGN INVESTORS WHO THINK THE YEN WILL CONTINUE TO STRENGTHEN AGAINST THE DOLLAR SEE AN ADDED CURRENCY PLAY THE YEN HAS GAINED ABOUT 4 AGAINST THE DOLLAR THIS YEAR THERE IS ALSO PLENTY OF INCENTIVE FOR THE COMPANIES ISSUING THE BONDS JAPANESE CORPORATIONS HAVE TO REFINANCE AN ESTIMATED 10 TRILLION YEN 8459 BILLION IN DEBT THIS YEAREQUITYLINKED FINANCE THEY PILED UP WHEN THE STOCK MARKET BOOMED IN THE 1980S WITH THE TOKYO STOCK MARKET NOW ON THE ROPES MANY COMPANIES HAVE AN INTEREST IN SEEING THE CORPORATE BOND MARKET GROW THERE'S A FORTUNATE CONFLUENCE OF BUYERS AND SELLERS NOW SAYS MARSHALL GITTLER FIXED INCOME STRATEGIST AT MERRILL LYNCH JAPAN INC IN JAPAN HE SAYS CORPORATE BONDS ARE ONE OF THE HOT ISSUES NOWADAYS TO BE SURE THE JAPANESE CORPORATE BOND MARKET ISN'T ANYWHERE NEAR THE SIZE OF ITS US AND EUROPEAN COUNTERPARTS JAPANESE CREDIT RATINGS OF MANY COMPANIES CONSIDERED ESSENTIAL TO ATTRACT OVERSEAS INTEREST IN THE BOND MARKET STILL CONTAIN TOO MANY SUBJECTIVE ELEMENTS ALSO THERE IS LITTLE SECONDARY MARKET TRADING OF CORPORATE BONDS THOUGH THE MARKET SHOWS SIGNS OF PICKING UP JAPANESE CORPORATE ISSUERS SEEM TO BE GETTING MORE COMPETITIVE IN THE TYPES OF BONDS THEY ISSUE TOO CLOTHING MAKER ONWARD KASHIYAMA CO IS NOW ISSUING A 10 BILLION YEN BOND WITH A TWOYEAR MATURITY IT'S BELIEVED TO BE THE MARKET'S FIRST TWOYEAR CORPORATE BOND WHICH MANY INVESTORS SEE AS AN EFFORT TO COMPETE WITH JAPANESE BANKS' TWOYEAR TIME DEPOSITS HIDENOBU TAKANA MANAGING DIRECTOR OF THE ACCOUNTING DEPARTMENT AT ONWARD KASHIYAMA SAYS THE COMPANY CHOSE TO ISSUE THE SHORTERTERM BOND TO INCREASE ITS FLEXIBILITY SHOULD FINANCING COSTS DROP IN THE NEXT YEAR OR SO SOME BANKS ROUTINELY COME TO US ASKING US TO TAKE OUT LOANS HE SAYS BUT THIS IS CHEAPER THE REFINANCING OF EQUITYLINKED DEBT IS EXPECTED TO PEAK THIS YEAR BUT EVEN WHEN IT SUBSIDES THE LEVEL WILL REMAIN HIGH AN ADDITIONAL FIVE TRILLION YEN IN EXPIRING DEBT WILL HAVE TO BE REFINANCED IN 1994 ENOUGH TO KEEP JAPAN'S CORPORATE BOND MARKET ACTIVE ANALYSTS SAY 9302230162 930223 ENTERPRISE MINORITY SHAREHOLDERS STAND UP DEMAND TO BE HEARD RIGHTS MOVEMENT IS GAINING BETTER TERMS FROM CLOSELY HELD COMPANIES BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL KAREN GOETTSCHE IS FED UP WITH BEING SHUT OUT OF HER FAMILY'S CHICAGO MANUFACTURING COMPANY AS A MINORITY SHAREHOLDER SHE FEELS STUCK WITH A POOR INVESTMENT I'D LIKE TO BE ABLE TO INHERIT WHAT MY DAD LEFT ME INCLUDING A JOB SAYS 50YEAROLD MS GOETTSCHE WHOSE FATHER FOUNDED THE COMPANY BUT SHE SAYS THAT HER EFFORTS TO LAND A JOB THERE CREATED ANTAGONISM WITH THE SIX FAMILY MEMBERS WHO ALREADY WORK AT THE COMPANY DIRECTORS BLOCKED HER ATTEMPT TO JOIN THE BOARD SHE ADDS LIKE MANY MINORITY SHAREHOLDERS IN CLOSELY HELD COMPANIES MS GOETTSCHE CONSIDERS HER STOCK DIVIDENDS A PITTANCE SHE HAS REJECTED COMPANY OFFERS TO BUY HER SHARES AS TOO LOW UNLIKE PUBLIC COMPANY SHAREHOLDERS SHE CAN'T EASILY ESCAPE HER FIX BY SELLING HER SHARES I'M AT THEIR MERCY SHE COMPLAINS RATHER THAN GIVING UP MS GOETTSCHE AND COUNTLESS OTHER MINORITY SHAREHOLDERS ACROSS THE US ARE STARTING TO FLEX THEIR MUSCLES THE SHAREHOLDER RIGHTS MOVEMENT THAT HAS SWEPT CORPORATE AMERICA IS KNOCKING AT THE CLOSED BOARDROOMS OF CLOSELY HELD COMPANIES THE MOVEMENT IS JUST NOW CATCHING ON IN FAMILY BUSINESSES AND OTHER CLOSELY HELD CORPORATIONS SAYS FRANCOIS DE VISSCHER A STAMFORD CONN CONSULTANT ON LIQUIDITY OPTIONS FOR FAMILY SHAREHOLDERS MANY MINORITY SHAREHOLDERS IN CLOSELY HELD CORPORATIONS ARE TAKING THEIR COMPLAINTS TO COURT AND FINDING JUDGES MORE SYMPATHETIC PROSPECTIVE MINORITY STAKEHOLDERS ALSO ARE DEMANDING BETTER TERMS BEFORE THEY INVEST MS GOETTSCHE FOR EXAMPLE WANTS TO LAUNCH A NETWORK OF MINORITY SHAREHOLDERS THAT WOULD PRESS FOR THEIR FAIR TREATMENT IN PRIVATE COMPANIES SHE PREPARED A BROCHURE TITLED THE FORGOTTEN SHAREHOLDER AND HELD A MEETING FOR KINDRED SPIRITS THIS MONTH IN SUBURBAN WOODFIELD ILL REQUESTS FOR HELP FROM MINORITY SHAREHOLDERS IN CLOSELY HELD CORPORATIONS HAVE RISEN TO SEVERAL A MONTH FROM ONE A YEAR IN THE LAST TWO YEARS REPORTS THE UNITED SHAREHOLDERS ASSOCIATION A WASHINGTON ADVOCACY GROUP FOR SHAREHOLDERS OF PUBLIC COMPANIES SOME REQUESTS INVOLVE PITIFUL CASES OF MINORITY SHAREHOLDERS BEING SQUEEZED OUT OF PRIVATE CONCERNS SAYS RALPH WHITWORTH THE GROUP'S PRESIDENT THESE TROUBLES TYPICALLY ARISE OVER CONFLICTING PRIORITIES OF MINORITY AND MAJORITY SHAREHOLDERS IN PRIVATE FIRMS LEGAL EXPERTS SAY MAJORITY STOCKHOLDERS USUALLY CONTROL MANAGEMENT AND OFTEN HOLD HIGHLY PAID JOBS THIS ENCOURAGES THEM TO PROMOTE THE COMPANY'S GROWTH AND CAPITAL REINVESTMENT THEY KEEP DIVIDENDS LOW AND SALARIES HIGH BECAUSE DIVIDENDS ARE TAXED AT BOTH THE CORPORATE AND INDIVIDUAL LEVEL SALARIES ARE TAXED ONLY AT THE INDIVIDUAL LEVEL BUT MINORITY SHAREHOLDERS OFTEN RELY SOLELY ON DIVIDENDS TO MAKE MONEY FROM THEIR HOLDINGS IN THE PAST LEGAL SPECIALISTS NOTE MINORITY INVESTORS' COMPLAINTS ABOUT THEIR LOW DIVIDENDS OR OTHER ILL TREATMENT PROMPTED MAJORITY SHAREHOLDERS ESSENTIALLY TO SAY TOUGH LUCK WHEN THE MAJORITY OFFERED TO BUY THE MINORITY'S SHARES THE PRICE WAS GENERALLY DISCOUNTED AGAINST A COMPANY'S VALUE BECAUSE THE SHARES LACK MARKETABILITY INCREASINGLY HOWEVER COURTS AND LEGISLATURES HAVE RECOGNIZED THAT THE POSITION OF MINORITY SHAREHOLDERS NEEDS ENHANCEMENT SAYS ROBERT THOMPSON A WASHINGTON UNIVERSITY LAW PROFESSOR WHO HAS WRITTEN EXTENSIVELY ABOUT MINORITY SHAREHOLDER RIGHTS HE SAYS THAT MORE JUDGES NOW LET MINORITY SHAREHOLDERS BRING CASES CHARGING THE MAJORITY WITH BREACHING THEIR FIDUCIARY DUTY AND MORE COURTS ARE ORDERING REMEDIES SUCH AS BUYOUTS OF MINORITY SHARES IN ADDITION MR THOMPSON CONTINUES JUDGES HAVE REDUCED OR ELIMINATED THE TRADITIONAL BUYOUT DISCOUNT ON MINORITY SHARES WHEN A MINORITY SHAREHOLDER GETS FORCED OUT CONSIDER THE THREE PEDRO BROTHERS THEY WORKED TOGETHER FOR MOST OF THEIR ADULT LIVES WITH EACH MAN HOLDING ONETHIRD OF THEIR FAMILY'S MINNESOTA LUGGAGE AND LEATHER GOODS FIRM ACCORDING TO AN AUGUST 1992 OPINION BY THAT STATE'S APPEALS COURT THE OPINION SAID THAT A FALLING OUT AROSE AFTER ALFRED PEDRO THE BROTHER WHO WAS MANUFACTURING MANAGER QUESTIONED AN APPARENT DISCREPANCY IN THE COMPANY'S FINANCIAL RECORDS WHEN INTERNAL INVESTIGATIONS DIDN'T RESOLVE THE ISSUE MR PEDRO TESTIFIED THAT HIS MANAGERIAL AUTHORITY WAS UNDERMINED IN 1987 HIS BROTHERS THEN THE FIRM'S CHAIRMAN AND PRESIDENT FIRED HIM THE APPEALS COURT NOTED THAT AS A MINORITY SHAREHOLDER IN SUCH A CLOSELY HELD CORPORATION MR PEDRO COULD REASONABLY EXPECT A JOB SALARY A SIGNIFICANT PLACE IN MANAGEMENT AND ECONOMIC SECURITY FOR HIS FAMILY THE COURT SAID MR PEDRO SHOULD BE AWARDED FAIR MARKET VALUE FOR HIS STOCK DESPITE A COMPANY AGREEMENT THAT PEGGED THE BUYOUT OF SHARES AT A 25 DISCOUNT FROM THEIR BOOK VALUE THE COURT AGREED WITH A LOWER COURT THAT MR PEDRO DESERVED FAIRMARKET VALUE TO COMPENSATE HIM FOR BEING FORCED TO SELL HIS SHARES IT UPHELD THE LOWER COURT FINDING THAT HIS BROTHERS HAD BREACHED THEIR FIDUCIARY DUTY TO HIM AND WRONGFULLY TERMINATED HIS CONTRACT FOR LIFETIME EMPLOYMENT IT ALSO UPHELD A 2 MILLION AWARD TO AVOID SUCH NASTY LEGAL TANGLES PROSPECTIVE MINORITY SHAREHOLDERS ARE BARGAINING HARDER UPFRONT SOME INVESTORS NOW INSIST ON A BOARD SEAT A SALARY BASED ON COMPANY PERFORMANCE OR A BUYOUT ARRANGEMENT IF THEY LOSE THEIR JOBS SAYS JC BRUNO A DETROIT LAWYER AND SMALLBUSINESS SPECIALIST MEANWHILE MORE PRIVATE COMPANIES ARE TRYING TO AVERT COSTLY LITIGATION BY TREATING MINORITY SHAREHOLDERS BETTER FIRMS ARE CREATING SEPARATE CLASSES OF STOCK SUCH AS A HIGHDIVIDEND CLASS WITH NO VOTING RIGHTS FOR PASSIVE SHAREHOLDERS AND A LOWDIVIDEND CLASS WITH VOTING RIGHTS FOR PAID MANAGERS SAYS MR DE VISSCHER THE CONSULTANT IN ADDITION THE CONSULTANT NOTES SOME FIRMS CREATE OCCASIONAL MARKETS FOR THEIR STOCK A CONCERN SETS ASIDE CERTAIN AMOUNTS SAY 1 TO 10 OF ITS YEARLY EARNINGS OR CASH FLOW FOR A SPECIAL LIQUIDITY FUND THEN FOR A FIXED PERIOD EVERY YEAR GENERALLY A MONTH TO SIX WEEKS THE BUSINESS USES THE FUND TO BUY STOCK FROM SHAREHOLDERS THE SALE PRICE IS BASED ON AN INDEPENDENT EVALUATION OR A MULTIPLE OF EARNINGS MS GOETTSCHE FOR ONE CONSIDERS SUCH A FUND A GOOD IDEA BUT SHE INSISTS THAT ANY APPRAISAL BE TRULY INDEPENDENT 9302230161 930223 CANADIAN TRADE BILL OTTAWA THE CANADIAN GOVERNMENT SAID IT INTENDS TO INTRODUCE IN THE HOUSE OF COMMONS LATER THIS WEEK LEGISLATION TO IMPLEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT REACHED BY THE US CANADA AND MEXICO THE AGREEMENT IS TO TAKE EFFECT JAN 1 1994 PROVIDED IT IS APPROVED BY THE LEGISLATURES OF THE THREE COUNTRIES THE PACT WOULD GRADUALLY DISMANTLE TRADE BARRIERS AMONG THE THREE COUNTRIES 9302230160 930223 WHO'S NEWS CITY NATIONAL APPOINTS OFFICERS BEVERLY HILLS CALIF CITY NATIONAL CORP SAID IT NAMED STEVEN D BROIDY VICE CHAIRMAN AND GEORGE H BENTER PRESIDENT OF THE BANK HOLDING COMPANY THE TWO EXECUTIVES ALSO WILL JOIN THE COMPANY'S BOARD EXPANDING ITS MEMBERSHIP TO 12 BOTH EXECUTIVES JOINED CITY NATIONAL LAST APRIL MR BROIDY 55 YEARS OLD IS VICE CHAIRMAN AND CHIEF ADMINISTRATIVE OFFICER OF THE COMPANY'S CITY NATIONAL BANK UNIT HE IS A FORMER PARTNER AT THE LOS ANGELES LAW FIRM LOEB & LOEB AND WAS A LONGTIME EXECUTIVE AT UNION BANK MR BENTER 51 IS PRESIDENT AND CHIEF OPERATING OFFICER OF CITY NATIONAL BANK PRIOR TO THAT HE SERVED FOR 27 YEARS AT SECURITY PACIFIC NATIONAL BANK NOW PART OF BANKAMERICA CORP WHERE HE SERVED AS VICE CHAIRMAN AND CHIEF CREDIT OFFICER 9302230159 930223 SCECORP UNIT TO BUY BONDS ROSEMEAD CALIF SOUTHERN CALIFORNIA EDISON CO OFFERED TO PURCHASE ALL OF ITS 10 FIRST AND REFUNDING MORTGAGE BONDS SERIES 89A DUE JAN 15 2020 THE UTILITY UNIT OF SCECORP SAID IT WILL PAY 113250 PER 1000 FACE AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF PAYMENT THE OFFER PART OF THE COMPANY'S CONTINUING EFFORT TO REDUCE INTEREST COSTS IS SET TO EXPIRE NEXT TUESDAY PAINEWEBBER INC WAS NAMED DEALERMANAGER FOR THE OFFER 9302230158 930223 IN SHIFT AMERICAN INTERNATIONAL PLANS ITS OWN SALES FORCE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A BID TO BECOME A MAJOR FORCE IN THE US LIFE INSURANCE BUSINESS AMERICAN INTERNATIONAL GROUP INC HAS BEGUN TO BUILD AN INHOUSE GROUP OF SALES AGENTS UNLIKE INDEPENDENT AGENTS WHO SELL POLICIES OF A NUMBER OF COMPANIES THESE CAREER AGENTS WILL SELL ONLY AIG PRODUCTS SOME 60 OF ALL LIFE INSURANCE IN THE US IS SOLD BY CAREER AGENTS AIG THE LARGEST INVESTOROWNED PROPERTY AND CASUALTY INSURER IN THE COUNTRY HAS A LARGE INTERNATIONAL LIFE INSURANCE OPERATION BUT ONLY A SMALL PRESENCE IN THE US THE COMPANY'S DOMESTIC LIFE INSURANCE OPERATION HAD PREMIUMS OF 11 BILLION LAST YEAR AND 52 BILLION IN ASSETS MAKING IT ABOUT THE 45THLARGEST DOMESTIC LIFE INSURER THE COMPANY PLANS TO CRACK THE TOP 20 WITHIN FIVE YEARS SAID ROBERT J O'CONNELL PRESIDENT OF AIG'S DOMESTIC LIFE INSURANCE UNIT WE CANNOT BECOME THE MAJOR FORCE WE HOPE TO BECOME WITHOUT HAVING A CAREER AGENCY FORCE MR O'CONNELL SAID AIG'S ACTION UNDERSCORES THE TURMOIL IN THE LIFE INSURANCE BUSINESS PLAGUED BY BAD INVESTMENTS A NUMBER OF COMPANIES ARE CUTTING BACK THEIR OPERATIONS CUTTING STAFF AND ADDING LESS NEW BUSINESS THE CUTBACKS CREATE OPPORTUNITIES FOR COMPANIES RATED TRIPLEA BY STANDARD POOR'S CORP SUCH AS AIG AND THE HARTFORD LIFE INSURANCE OPERATION OF ITT CORP WHICH IS ALSO EXPANDING HIGHERRATED COMPANIES ARE ABLE TO ATTRACT LIFE INSURANCE CUSTOMERS FROM WEAKER COMPANIES TWO YEARS AGO AIG CONSIDERED BUYING EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES THE COUNTRY'S FIFTHLARGEST LIFE INSURER EQUITABLE SUBSEQUENTLY WENT PUBLIC AMERICAN INTERNATIONAL CHAIRMAN MAURICE GREENBERG HAS TOLD ANALYSTS THAT IF HE DIDN'T BUY A LIFE INSURANCE COMPANY HE WOULD BUILD ONE INTERNALLY HE THINKS THIS BUSINESS IS MORE PROFITABLE NOW SAID SHEARSON LEHMAN BROTHERS ANALYST GLORIA VOGEL THE AGING POPULATION AND MATURING OF THE BABYBOOM GENERATION HAVE COMBINED TO CREATE GROWTH OPPORTUNITIES IN LIFE INSURANCE CONTRADICTING THE NOTION THAT LIFE INSURANCE IS A MATURE AND STAGNANT INDUSTRY AIG HAS ALREADY OPENED SALES OFFICES IN NEW YORK AND RIDGEFIELD CONN THE COMPANY WILL OPEN OFFICES IN SAN FRANCISCO LOS ANGELES CHICAGO AND ATLANTA BY MARCH 15 AND PLANS TO HAVE 10 TO 15 AGENCIES BY THE YEAR END MR O'CONNELL SAID NOW IS A GOOD TIME TO RECRUIT EXPERIENCED AGENTS BECAUSE MANY AT OTHER COMPANIES FEEL FRUSTRATED WE'VE BEEN ABLE TO ATTRACT MANAGERS WHOSE CAREER TRACKS WERE EFFECTIVELY BLOCKED MR O'CONNELL SAID UNTIL NOW AIG'S DOMESTIC LIFE OPERATION HAS CONCENTRATED ON SELLING ANNUITIES AND OTHER PENSION PRODUCTS MOSTLY THROUGH BANKS AND BROKERS THE NEW AGENTS WILL FOCUS ON SELLING INDIVIDUAL LIFE INSURANCE POLICIES MR O'CONNELL SAID HE EXPECTS TO PRODUCE 30 MILLION IN FIRSTYEAR PREMIUMS THIS YEAR WITHIN FIVE YEARS HE EXPECTS THE COMPANY TO GENERATE 150 MILLION IN FIRSTYEAR PREMIUM BY THAT TIME HE EXPECTS AIG TO HAVE 600 TO 800 CAREER AGENTS MR O'CONNELL SAID BUILDING THE AGENCY FORCE IS CURRENTLY A GREATER PRIORITY THAN BUYING A LIFE INSURANCE COMPANY 9302230157 930223 ECONOMY CONSUMERLED ECONOMIC GROWTH IS SEEN CONTINUING DESPITE POSSIBLE TAX BOOSTS BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE PROSPECTS OF TAX INCREASES THE RECENT UPTICK IN CONSUMER SPENDING IS EXPECTED TO CONTINUE HELPING SUSTAIN ECONOMIC EXPANSION SOME ECONOMISTS SAY THAT'S BECAUSE CONSUMERS ARE IN BETTER FINANCIAL SHAPE THAN PREVIOUSLY THOUGHT THANKS IN LARGE PART TO LOWER INTEREST RATES WHICH HAVE HELPED HOUSEHOLDS TO REDUCE HOMEMORTGAGE PAYMENTS SHARPLY IN THE PAST YEAR IN PARTICULAR HOMEOWNERS WHO TOOK PART IN A RECORD SURGE OF HOMEMORTGAGE REFINANCING ACTIVITY LAST YEAR OR WHO HAD THEIR RATES ADJUSTED DOWNWARD SAW THEIR MONTHLY PAYMENTS DROP ON THE AVERAGE OF 400 TO 500 OR FOR A TOTAL OF 22 BILLION IN ADDITIONAL ANNUAL SAVINGS THE FINANCIAL HEALTH OF THE HOMEOWNER IS IMPORTANT TO ECONOMIC GROWTH BECAUSE THE GROUP REPRESENTS MORE THAN 65 OF THE TOTAL CONSUMER OUTLAY AT THE SAME TIME THE NEGATIVE IMPACT OF THE LOWER RATES ON SAVERS EBBED IN 1992 AS MORE CONSUMERS SWITCHED FROM LOWYIELD ACCOUNTS SUCH AS PASSBOOK SAVINGS OR CERTIFICATES OF DEPOSITS TO HIGHER YIELDING MUTUAL FUNDS AND ANNUITIES AS A RESULT WITH NEWFOUND MONEY IN THEIR POCKETS COUPLED WITH REDUCED DEBT BURDEN CONSUMERS HAVE THE FINANCIAL WHEREWITHAL TO SUSTAIN THE HIGHER LEVEL OF SPENDING THAT BEGAN IN THE THIRD QUARTER OF LAST YEAR BUT THAT'S A FAR CRY FROM THE CAUTIOUS OUTLOOK ECONOMISTS HAD JUST A MONTH AGO ECONOMISTS WERE CONCERNED THAT THE UPTICK IN CONSUMER SPENDING DURING THE THIRD AND FOURTH QUARTERS OF LAST YEAR WAS JUST A BLIP AND WOULDN'T LAST FEARING THAT CONSUMERS MAY HAVE GONE BACK IN HOCK AND WOULD RETRENCH AGAIN IN THE NEW YEAR THAT HOWEVER ISN'T HAPPENING SAYS ROBERT J BARBERA CHIEF ECONOMIST FOR SHEARSON LEHMAN BROS SINCE STRONG CONSUMER SPENDING GROWTH WASN'T EXPECTED CONVENTIONAL WISDOM SAID THAT CONSUMERS MUST HAVE BORROWED OR DRAWN DOWN ON THEIR SAVINGS DR BARBERA SAID BUT RECENT DATA SHOW THAT THEY DIDN'T DRAW THEIR SAVINGS DOWN AND THEY DID MATERIALLY INCREASE THEIR SPENDING WITHOUT INCURRING ADDITIONAL DEBT SO WHERE DID THE MONEY COME FROM DR BARBERA AND OTHER ECONOMISTS POINT TO AN EXPLOSIVE REDUCTION IN THE COSTS ASSOCIATED WITH OWNING A HOME WE'RE STILL UNDERESTIMATING THE BENEFITS OF REFINANCING SAID SUSAN STERNE PRESIDENT OF ECONOMIC ANALYSIS ASSOCIATES BASED IN STOWE VT MONEY IS COMING FROM SOMEWHERE AND THAT'S WHERE YOU'LL HAVE TO LOOK INDEED IN MS STERNE'S OWN ESTIMATES THE DECLINE IN INTEREST RATES IN 1992 ALONE SAVED HOME OWNERS 22 BILLION IN MORTGAGEDEBT PAYMENTS THAT DOESN'T INCLUDE ADDITIONAL BENEFITS FROM HAVING PAID DOWN CREDIT CARD OR AUTOMOBILE LOAN BILLS WITH LOWER INTERESTRATE HOME EQUITY LOANS OR WITH SAVINGS FROM HAVING REFINANCED THE MORTGAGE AND THE FLURRY OF HOMEMORTGAGE REFINANCING ACTIVITY ISN'T EXPECTED TO WANE ANY TIME SOON PROVIDING FURTHER SAVINGS FOR HOMEOWNERS WHO MISSED OUT LAST YEAR IN FACT THE MORTGAGE BANKERS ASSOCIATION REPORTED LAST WEEK THAT ANOTHER BOOM WAS BEGINNING AFTER A SLOWDOWN IN NOVEMBER IN ADDITION TO REFINANCING MORTGAGES MS STERNE SAYS SOME HOMEOWNERS HAVE BEEN CHANGING THEIR MORTGAGE TERMS SWITCHING TO 15 YEARS FROM 30 YEARS HALVING THE AMOUNT OF TIME IT WOULD TAKE TO PAY DOWN THE MORTGAGE AND PROVIDING LONGERTERM COSTSAVING BENEFITS AT THE SAME TIME HOMEOWNERS CONCERNED WITH THE PROSPECTS OF LOSING THEIR JOBS DIDN'T IMMEDIATELY SPEND WHAT THEY SAVED IN MORTGAGE COSTS THE UPSIDE OF THE GLOOM WAS THAT CONSUMERS RETRENCHED SPENDING LESS AND ALMOST INVOLUNTARILY GOT THEIR FINANCES IN BETTER SHAPE SAYS EDWARD D MCCARTHY A RHODE ISLAND PERSONALFINANCE PLANNER OF COURSE INCREASES IN JOB CUTS COULD STILL DERAIL ANY GROWTH IN CONSUMER SPENDING AND CONSUMERS MAY SOUR ON CLINTON'S ECONOMIC PLAN TO CUT THE DEFICIT WITH INCREASED TAXES DAMPING CONSUMERS' OUTLOOK AND FORCING THEM TO RETRENCH AGAIN BUT SO FAR THE NUMBER OF NEW JOBS HAS BEGIN TO RISE AGAIN ALBEIT SLOWLY AND INITIAL POLLS INDICATE FAVORABLE REACTION TO THE ECONOMIC PLAN MEANWHILE LONGTERM INTEREST RATES ARE EXPECTED TO CONTINUE TO FALL WHICH WILL PROVIDE FURTHER BENEFITS FOR BORROWERS EVEN THE LIKELIHOOD OF LOWER TAX REFUNDS IN THE SECOND QUARTER A RESULT OF PRESIDENT BUSH'S CALL FOR THE IRS TO WITHHOLD LESS MONEY FROM 1992 PAYCHECKS ISN'T GOING TO DERAIL THE MOMEMTUM THAT HAS BEEN BUILDING SAID DR BARBERA 9302230156 930223 CREDIT MARKETS TREASURY BOND YIELDS FALL SHARPLY AS INVESTORS MAINTAIN CONFIDENCE IN CLINTON'S ECONOMIC PLAN BY THOMAS T VOGEL JR AND GENE COLTER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY BOND YIELDS PLUNGED YESTERDAY AS BOND INVESTORS MAINTAINED THEIR CONFIDENCE IN PRESIDENT CLINTON'S ECONOMIC PACKAGE LESS THAN A WEEK AFTER THE PRESIDENT PROPOSED DRAMATIC TAX INCREASES AND SHARP CUTS IN GOVERNMENT SPENDING THE BOND MARKETS ARE STILL MOSTLY POSITIVE ABOUT THE PLAN NEWS OF A 2981 BILLION BUDGET SURPLUS IN JANUARY HELPED TO SPARK YESTERDAY'S RALLY WHICH PUSHED UP THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND BY 7/8 POINT OR 875 FOR A BOND WITH 1000 FACE VALUE ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED BELOW 7 FOR THE FIRST TIME IN OVER 15 YEARS TO 693 DOWN FROM 700 ON FRIDAY THE PRICES OF FUTURES CONTRACTS MEANWHILE REACHED AN ALLTIME HIGH SAID TRADERS WITH MARCH BOND FUTURES RISING 3/4 POINT TO 110 10/32 A FUTURES CONTRACT IS AN AGREEMENT TO BUY OR SELL A GIVEN AMOUNT OF A SPECIFIC SECURITY OR COMMODITY AT A CERTAIN PRICE ON A SPECIFIED DATE IN THE FUTURE ACCORDING TO TRADERS VOLUME WAS LIGHT AS INVESTORS GEARED UP FOR TODAY'S SCHEDULED TREASURY AUCTION OF 1525 BILLION IN TWOYEAR NOTES AND TOMORROW'S AUCTION OF 11 BILLION IN FIVEYEAR NOTES BEFORE LAST WEEK THE YIELD ON THE 30YEAR BOND HAD NEVER DROPPED BELOW 710 SINCE THE TREASURY RESUMED REGULAR AUCTIONS OF THE BOND IN 1977 BEFORE THAT ISSUANCE OF THE 30YEAR BOND WAS IRREGULAR AND THEREFORE DIFFICULT TO COMPARE TO THE EASILY TRADED 30YEAR BOND OF TODAY ACCORDING TO ROBERT DICLEMENTE AN ECONOMIST AT SALOMON BROTHERS INC MANY OF THE 30YEAR BONDS SOLD IN THE 1960S AND BEFORE WERE SOCALLED FLOWER BONDS WHICH WERE SOLD AT A DISCOUNT TO FACE VALUE AND COULD BE REDEEMED AT THE DEATH OF THE HOLDER FOR PAYMENT OF FEDERAL ESTATE TAXES AS A RESULT MR DICLEMENTE RECOMMENDED THAT INVESTORS ALSO USE THE 10YEAR NOTE FOR HISTORICAL COMPARISON BECAUSE IT HAS HAD A MORE CONSISTENT ISSUANCE YESTERDAY FOR EXAMPLE THE PRICE OF THE 10YEAR NOTE ROSE 5/8 POINT TO 101 9/32 AS ITS YIELD DROPPED TO 606 FROM 614 ON FRIDAY ACCORDING TO MR DICLEMENTE THE LAST TIME THE 10YEAR NOTE CLOSED BELOW 610 WAS IN JULY 1972 INCREASED TAXES THE CURRENT BOND MARKET WISDOM HOLDS COULD HAVE A DAMPENING EFFECT ON ECONOMIC GROWTH BOND INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE IT OFTEN MEANS A PICKUP IN INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH FIXED RETURNS LIKE BONDS THE QUESTION NOW SAY TRADERS IS HOW THE PLAN SURVIVES CONGRESSIONAL DEBATE AND LOBBYING GROUPS MANY BOND TRADERS WERE STILL SKEPTICAL ABOUT THE PRESIDENT'S PROPOSALS TO REDUCE GOVERNMENT SPENDING AND NARROW THE FEDERAL BUDGET DEFICIT BUT WERE UNABLE TO IGNORE THE FLOWS OF BOND ORDERS FROM MUTUAL FUNDS LARGE MONEY MANAGERS AND INDIVIDUAL INVESTORS MEANWHILE MUNICIPAL BONDS ROSE AS MUCH AS 5/8 POINT YESTERDAY HELPED BY ANOTHER SPURT OF BUYING MUNICIPAL BONDS ARE STILL BEING SNAPPED UP BECAUSE OF THE PRESIDENT'S PLAN TO RAISE PERSONAL INCOME TAXES ON HIGHER INCOMES AND THEY ARE EXPECTED TO KEEP CLIMBING THIS WEEK AFTER RISING SUBSTANTIALLY FOR THE LAST FIVE CONSECUTIVE TRADING DAYS ACCORDING TO WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC WHETHER YOU AGREE OR DISAGREE WITH THE RECENT PRICE ACTION IN THE BOND MARKETS IT'S BEEN FORMIDABLE MR SULLIVAN SAID THAT THERE WAS SOME SELLING PRESSURE ON US TREASURYS IN OVERSEAS MARKETS GIVEN THE RECENT STRENGTHENING OF THE YEN VS THE DOLLAR IN FOREIGN EXCHANGE MARKETS BUT THAT DISSIPATED IN US TRADING WE DID SEE A DEFINITE PICKUP IN BUYER INTEREST AFTER THE BUDGET DATA WAS RELEASED SAID MR SULLIVAN THERE WAS A BIG QUESTION ABOUT WHETHER PEOPLE WOULD STEP UP TO PLATE TO BUY WITH THE 30YEAR TREASURY BOND YIELDING 7 HE SAID AND THEY PROVED THAT THEY COULD TODAY CASH HAS BEEN POURING INTO BOND FUNDS SINCE MR CLINTON REVEALED HIS PLAN SAID MR SULLIVAN BECAUSE THERE IS THE STRONG BELIEF THAT HIS TAX PROPOSALS WILL SLOW THE ECONOMY IF YOU'RE A MONEY MANAGER YOU CAN'T JUST SIT BY AND WATCH THE KIND OF PRICE RUNUPS SEEN RECENTLY SAID TONY CRESCENZI DIRECTOR OF FIXED INCOME AT MILLER TABAK HIRSCH & CO PEOPLE ARE BEING FORCED INTO THE MARKET THE DROP IN THE 30YEAR BOND'S YIELD MAY HAVE DRAWN MORE ATTENTION ON MORTGAGEBACKED SECURITIES DESKS WHERE TRADERS BEGAN TO SELL INVENTORY AND MOVE INTO TREASURYS MORTGAGE RATES WILL FOLLOW LONG BOND YIELDS DOWN TRADERS REASONED CAUSING HOMEOWNERS TO REFINANCE THEIR HOME LOANS THAT IN TURN CAUSES SECURITIES CREATED FROM MORTGAGE LOANS TO BE CALLED EARLY THUS REDUCING THE VALUE OF MANY MORTGAGEBACKED SECURITIES DISSENT IN THE DEMOCRATIC CONGRESSIONAL RANKS HAS CAUSED MANY IN THE BOND MARKET TO WONDER IF THE CLINTON PLAN WILL LEAVE CAPITOL HILL EVEN RESEMBLING ITS ORIGINAL FORM BUT THAT'S ODDLY HELPING THE MARKET SAID MR CRESCENZI OF MILLER TABAK THERE ARE A FEW MORE AGAINST THE CLINTON PROPOSALS THAN THERE WERE A FEW WEEKS AGO AND IT'S LEADING PEOPLE TO BELIEVE THAT IN ORDER TO GET IT PASSED CLINTON'S GOING TO HAVE TO THROW IN MORE SPENDING CUTS KATHLEEN STEPHANSEN SENIOR ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID BOND PLAYERS SHOULD HEED A COMMENT BY SEN DANIEL PATRICK MOYNIHAN D NY IN GAUGING THE OUTCOME SEN MOYNIHAN NOW CHAIRMAN OF THE SENATE FINANCE COMMITTEE HAS MADE THE POINT THAT TAXES ABOVE 36 ARE COUNTERPRODUCTIVE BECAUSE IT BRINGS ABOUT MORE LOOPHOLES FOR THE WEALTHY SAID MS STEPHANSEN MR CLINTON SAYS HE WANTS AN EFFECTIVE TAX RATE OF 396 FOR PEOPLE WHO EARN MORE THAN 250000 THUS IT LOOKS LIKE THE PRESIDENT IS IN FOR A FIGHT WITH ONE OF HIS OWN BUT THE BOND MARKET MAY PROFIT FROM EVEN A TONEDDOWN VERSION OF THE CLINTON PLAN ANYBODY WHO'S TAKEN FIRSTYEAR ECONOMICS KNOWS TAXES ARE A WAY TO SLOW DOWN THE ECONOMY SAYS JAMES KENNEY HEAD OF GOVERNMENT TRADING AT PRUDENTIAL SECURITIES IN LATE WHENISSUED TRADING YESTERDAY THE TWOYEAR NOTE TO BE AUCTIONED TODAY YIELDED 400 DOWN FROM 401 FRIDAY WHILE THE FIVEYEAR NOTE TO BE AUCTIONED TOMORROW YIELDED 525 DOWN FROM 530 ON FRIDAY YESTERDAY THE TREASURY SOLD 2329 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION DOWN SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 296 FOR A COUPONEQUIVALENT YIELD OF 302 COMPARED WITH 293 AND 299 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 306 FOR A COUPONEQUIVALENT YIELD OF 315 COMPARED WITH 308 AND 317 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB25 THE 13WEEK BILLS MATURE MAY 27 1993 AND THE 26WEEK BILLS MATURE AUG 26 1993 MUNICIPAL BONDS JUMPED FROM 1/8 POINT TO 5/8 POINT YESTERDAY AS INVESTORS CONTINUED POURING MONEY INTO THESE TAXEXEMPT BONDS TO USE THEM AS HEDGES AGAINST PROPOSED INCREASES IN PERSONAL INCOME TAX RATES BUYING INTEREST IS UNBELIEVABLE SAID JAMES HIGGINS A TRADER AT DILLON READ & CO AMONG SEASONED ISSUES THE SNOHOMISH COUNTY WASH PUBLIC UTILITY DISTRICT NO 1 ISSUE OF 6 REFUNDING BONDS OF 2018 CLOSED 5/8 POINT HIGHER AT 101 1/8 TO YIELD 590 PRIMARY MARKET DEALINGS GOT OFF TO A PARTICULARLY QUIET START BUT IT WAS PROBABLY THE CALM BEFORE THE STORM ACTIVITY SHOULD BE FAR LIVELIER TODAY WHEN MORE THAN 3 BILLION OF SECURITIES MAY BE INTRODUCED BY ISSUERS ANXIOUS TO TAKE ADVANTAGE OF THE CONTINUED DECLINE IN US INTEREST RATES AMONG THE ISSUERS SLATED TO SELL SIZABLE OFFERINGS ARE THE UTAH INTERMOUNTAIN POWER AGENCY MASSACHUSETTS AND CONNECTICUT THE LARGEST OF TODAY'S ANTICIPATED ISSUES AND MOST LIKELY THE WEEK'S BIGGEST OFFERING IS MICHIGAN'S 900 MILLION ISSUE OF GENERAL OBLIGATION NOTES THE NOTES WHICH ARE DUE ON SEPT 30 ARE SCHEDULED TO BE BROUGHT TO THE MARKET BY A BEAR STEARNS & CO GROUP THEY ARE BEING ISSUED TO PROVIDE FUNDS TO MEET OBLIGATIONS INCURRED BY MICHIGAN RELATED TO APPROPRIATIONS FOR THE STATE'S 199293 FISCAL YEAR WHICH BEGAN OCT 1 PROCEEDS FROM THE NOTE SALE WILL BE USED TO MEET CASH FLOW REQUIREMENTS OF THE STATE RESULTING FROM CASH DISBURSEMENTS THAT ARE SCHEDULED TO BE MADE BEFORE FUNDS ARE AVAILABLE TO MICHIGAN AS CASH RECEIPTS WITH DEMAND FOR MUNICIPAL BONDS INCREASING STEADILY NEITHER MICHIGAN NOR ANY OTHER ISSUERS ARE EXPECTED TO HAVE A PROBLEM SELLING TAXEXEMPT SECURITIES THIS WEEK HIGHGRADE CORPORATE BONDS GAINED WITH TREASURYS WHILE THE NEWISSUE MARKET WAS MUTED DESPITE A PRONOUNCED DROP IN INTEREST RATES DEALERS SAID THEY WERE SURPRISED THAT SO FEW COMPANIES TAPPED THE MARKET YESTERDAY TO REFINANCE DEBT CONSIDERING THE LARGE NUMBER OF SHELF REGISTRATIONS FILED RECENTLY IT'S POSSIBLE THAT CORPORATE FINANCE OFFICIALS BELIEVE THAT RATES COULD FALL FURTHER THEY SAID MOST ISSUES POSTED MODEST DECLINES IN EARLY TRADING BUT REVERSED COURSE LATER ENDING 1/8 TO AS MUCH AS 5/8 POINT HIGHER THE SPREAD OR DIFFERENCE BETWEEN YIELDS ON CORPORATE BONDS AND COMPARABLE TREASURYS WIDENED SLIGHTLY TRADERS SAID DESPITE A NEARLY ONEHALF PERCENTAGE POINT DROP IN INTEREST RATES ON TREASURYS SINCE EARLY JANUARY SPREADS BETWEEN CORPORATES AND TREASURYS HAVE REMAINED STEADY OR NARROWED TRADERS HAVE ARGUED IN THE PAST THAT THIS REFLECTS THE CONTINUED STRONG DEMAND FOR CORPORATE PAPER IN THE JUNK BOND MARKET MOST ISSUES ENDED UNCHANGED TO 1/8 POINT HIGHER IN EXTREMELY LIGHT VOLUME AS INVESTORS FOCUSED ON NEW ISSUES IN THE PIPELINE MORE THAN A DOZEN NEW JUNK DEALS ARE EXPECTED IN THE NEXT TWO WEEKS TRADERS AND INVESTORS SAID INVESTORS BACKED AWAY FROM MANY SECTORS OF THE MORTGAGEBACKED SECURITIES MARKET AGAIN YESTERDAY OUT OF FEAR THAT DECLINING LONG BOND YIELDS WILL SPUR MORE HOMEOWNERS TO REFINANCE MORTGAGE LOANS INTERESTONLY SECURITIES WHICH CAN BE WIPED AWAY INSTANTLY BY EARLY PREPAYMENTS WERE DOWN 1/2 TO 1 POINT YESTERDAY FOLLOWING DEEP HITS LAST WEEK CURRENT COUPON PASSTHROUGHS RECORDED ONLY SMALL GAINS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR MARCH DELIVERY FINISHED 5/32 HIGHER AT 103 3/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES ENDED 2/32 HIGHER AT 102 29/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FINISHED 3/32 HIGHER AT 102 23/32 A 30YEAR TREASURY BOND YIELDING LESS THAN 7 IS LIKELY TO PULL MORTGAGE RATES LOWER AS WELL POTENTIALLY TO LEVELS THAT WOULD PROMPT SOME HOMEOWNERS TO REFINANCE FOR A SECOND TIME IN LESS THAN A YEAR INVESTORS WHO NEED BONDS WITH SPECIFIC MATURITIES ARE THE LEAST LIKELY TO BUY MORTGAGE SECURITIES WHEN THE CHANCE OF PREPAYMENTS IS SO STRONG THUS PENSION FUNDS AND INSURANCE COMPANIES WHICH SEEK TO MATCH THE DURATION OF LIABILITIES WITH THE DURATION OF ASSETS ARE LIKELY TO SEEK SAFETY IN CORPORATE BONDS AND TREASURYS CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9302230155 930223 LETTERS TO THE EDITOR MYOPIA INERTIA AND PETTIFOGGING I COMMEND YOU FOR GIVING PAGEONE COVERAGE TO NONLETHAL ARMS NEW CLASS OF WEAPONS COULD INCAPACITATE FOE YET LIMIT CASUALTIES JAN 4 IT IS LONG PAST TIME THIS IMPORTANT SUBJECT RECEIVED A THOROUGH PUBLIC AIRING I ALSO COMMEND YOU FOR YOUR GENERALLY BALANCED TREATMENT OF THE OPERATIONAL TECHNICAL AND ETHICAL ISSUES SURROUNDING NONLETHALITY THAT WARRANT FURTHER EXPLICATION AND PUBLIC DEBATE I FAULT YOU THOUGH FOR NOT DEALING DIRECTLY WITH SOME IMPORTANT UNDERLYING QUESTIONS YOU RAISE WHY DON'T YOU CREDIT BOTH JANET AND CHRIS MORRIS AS BEING THE DRIVING FORCES BEHIND THE NONLETHALITY MOVEMENT WHY DO YOU LEAVE US TO THINK THAT THE FEDERAL GOVERNMENT KEY POLICY MAKERS THE PENTAGON'S NONLETHALITY STUDY GROUP THE NATIONAL LABORATORIES THE ARMY'S TRAINING AND DOCTRINE COMMAND AND EVEN THE JUSTICE DEPARTMENT HAS BEEN AT THE FOREFRONT OF THIS INITIATIVE INITIATIVE HERE DEFINED AS ONE HALTING STEP ABOVE DORMANCY WHY DON'T YOU TELL US HOW AND WHY DEEPLY EMBEDDED BUREAUCRATIC MYOPIA INERTIA AND PETTIFOGGING CAN KEEP A NEW INITIATIVE WITH SIGNIFICANT STRATEGIC POTENTIAL UNDER WRAPS FOR AN EXTENDED PERIOD IF WHAT YOU SAY IS TRUE WHY WOULD THE MORRISES AND THEIR COLLEAGUES BE PERCEIVED WITHIN THE PENTAGON AS MEDDLESOME AND UNCONTROLLABLE OUTSIDERS IS IT BECAUSE OUTSIDERS UNBURDENED BY THE RULES OF THE GAME THREATEN THE STATUS QUO REARVIEW MIRRORTHINKING OF COMFORTABLY OSSIFIED INSIDERS WHO HAVEN'T HAD A CREATIVE IDEA SINCE ONE AD WHY WOULD THESE PENTAGON INSIDERS RELABEL THE WHOLE CONCEPT DISABLING RATHER THAN NONLETHAL COULD IT HAVE SOMETHING TO DO WITH EXPROPRIATING SOMEONE ELSE'S IDEAS WITHOUT CREDITING THE SOURCE COULD IT BE THAT THE TERM DISABLING IS MORE OBFUSCATORY AND THUS LIKELY TO DRAW LESS ATTENTION THAN NONLETHAL COULD THE USE OF NONLETHAL WEAPONS UNDERMINE THE CREDIBILITY OF MANLY WARRIORS WHO PRIDE THEMSELVES ON BEING MANAGERS OF VIOLENCE OR KILLERS EVEN WHY WOULD THE PENTAGON WANT TO CLOAK SUCH A PROGRAM IN A VEIL OF SECRECY IS IT TRULY TO PROTECT US FROM UNSCRUPULOUS PROSPECTIVE ADVERSARIES WHO MIGHT DEVELOP COUNTERMEASURES OR EVEN USE NONLETHAL WEAPONS AGAINST US OR DO OUR MILITARY DECISION MAKERS FEAR THAT IF THE GREAT UNWASHED PUBLIC THE UNSOPHISTICATED LITTLE PEOPLE WHO WILLINGLY RELINQUISHED THEIR CONSTITUTIONAL POWERS OF CONSENT THROUGHOUT MUCH OF THE COLD WAR KNEW ABOUT NONLETHAL TECHNOLOGIES THEY WOULD DEMAND A LARGER ROLE FOR SUCH TECHNOLOGIES AND THEREBY ENDANGER MILITARY BUDGETS ARSENALS PREROGATIVES AND EVEN HALLOWED ROLES AND MISSIONS HEAVEN FORBID THAT WE SHOULD LET DEMOCRACY INTERFERE WITH NATIONAL SECURITY IF AS YOU SUGGEST RAY CLINE FORMER DEPUTY DIRECTOR OF THE CIA WAS IN FACT ABLE TO OPEN DOORS AT THE WHITE HOUSE AND PENTAGON WHY HAVEN'T WE SEEN ANY INITIATIVE FROM THOSE IN POWER WAS IT SIMPLY ANOTHER EXAMPLE OF BUSH ADMINISTRATION LETHARGY AND INACTION OR ARE THE DEEPER ROOTS OF A CONSTIPATED PAROCHIAL NATIONAL SECURITY ESTABLISHMENT AT WORK FINALLY WHY HAS CONGRESS SEEMINGLY NOT DUG INTO THIS ISSUE ARE OUR ELECTED REPRESENTATIVES UNAWARE OF THESE NEW TECHNOLOGIES AND THEIR POTENTIAL IF SO THEY SHOULD BE SHOT FOR DERELICTION OF DUTY OR HAVE THEY BEEN WILLINGLY COOPTED BY THE SAME SYSTEM THEY ARE SUPPOSED TO MONITOR YOUR READERS THOUGH GETTING A GENERAL SENSE THAT THERE IS AN EMERGING FAMILY OF WEAPONS THAT COULD DRAMATICALLY ALTER THE FACE OF WARFARE AND INTERNATIONAL POLITICS GAIN NO APPRECIATION OF THE BUREAUCRATIC RECALCITRANCE THAT IS IMPEDING THIS INITIATIVE THIS IS JUST ONE MORE GLARING EXAMPLE OF WHY A US THAT PURPORTS TO BE THE WORLD'S LONE SUPERPOWER AND LAYS CLAIM TO THE MANTLE OF GLOBAL LEADERSHIP WILL HAVE ONLY ITSELF TO BLAME IF WE BECOME VICTIMS RATHER THAN MASTERS OF OUR FUTURE YOUR ARTICLE QUOTES FROM MY BOOK LASER WEAPONS THE DAWN OF A NEW MILITARY AGE BY B ANDERBERG AND M WOLBARSHT PLENUM PRESS NEW YORK THAT BY THE END OF THE CENTURY LASER WEAPONS WILL FIND THEIR WAY INTO ARMIES ALL OVER THE WORLD AS GEN ANDERBERG AND I DISCUSS IN THIS BOOK THE USE OF ANTIPERSONNEL LASER WEAPONS HAS FARREACHING CONSEQUENCES NOT ONLY MUST THE MEDICAL SERVICES OF THE MILITARY BE RADICALLY REVISED BUT ALSO THERE MUST BE PROVISION FOR POSTWAR CARE OF THE LARGE NUMBERS OF BLINDED SURVIVORS RESULTING FROM LASERS USED AS INFANTRY WEAPONS THE EFFECT ON MORALE OF THE TROOPS FROM SUCH WEAPONS CANNOT BE DISCOUNTED EITHER ALL IN ALL GEN ANDERBERG AND I FEEL THAT THE SMALL HANDHELD LASER WEAPON WILL MAKE AS PROFOUND A CHANGE IN WARFARE AS THE INTRODUCTION OF THE MACHINE GUN DID THIS IS A PREDICTION BASED ON THE PRESENTDAY DEVELOPMENT OF LOWTECH LOWPOWER INEXPENSIVE LASERS THAT HAVE ALREADY BLINDED MANY IN LABORATORY AND MILITARY ACCIDENTS ALSO I AM A BIOPHYSICIST NOT AN OPHTHALMOLOGIST AS STATED IN THE ARTICLE 9302230154 930223 WHO'S NEWS HOME INSURANCE CO PRESIDENT NEW YORK HOME INSURANCE CO A SUBSIDIARY OF SWEDEN'S TRYGGHANSA HOLDING AB SAID LARSGORAN NILSSON WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE MR NILSSON 44 YEARS OLD SUCCEEDS JAMES J MEENAGHAN 55 WHO WILL CONTINUE AS CHAIRMAN BUT WON'T HAVE ANY OPERATING RESPONSIBILITIES A HOME INSURANCE SPOKESMAN DECLINED TO INDICATE ANY PARTICULAR REASON FOR THE MANAGEMENT CHANGE MR MEENAGHAN COULDN'T BE REACHED FOR COMMENT HOME INSURANCE SPECIALIZES IN UNDERWRITING LARGE COMPLEX AND SPECIALTY COMMERCIAL RISKS MR MEENAGHAN JOINED THE COMPANY IN 1986 AS PRESIDENT AND LATER ADDED THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER TRYGGHANSA ACQUIRED CONTROL OF THE COMMERCIAL PROPERTY/CASUALTY UNDERWRITER FROM AMBASE CORP IN 1991 BJORN SPRANGARE CHAIRMAN OF TRYGGHANSA SAID HOME INSURANCE WILL BEGIN A SEARCH FOR A CHIEF OPERATING OFFICER A NEW POSITION WHO WILL REPORT TO MR NILSSON 9302230153 930223 INTERNATIONAL YEN'S SURGE AGAINST DOLLAR TAXES JAPAN BURDENING RECESSIONWEARY EXPORTERS BY CLAY CHANDLER AND JOHN BUSSEY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE YEN'S EXTRAORDINARY SURGE TO RECORD STRENGTH AGAINST THE DOLLAR HEAPS UNEXPECTED BURDENS ON JAPAN'S STRUGGLING ECONOMY AND ADDS PRESSURE ON THE COUNTRY TO STIMULATE DOMESTIC DEMAND THE TIMING OF THE YEN'S SURGE JUST COULDN'T BE WORSE FOR JAPAN'S EXPORTERS SAYS MICHAEL JEREMY AN ELECTRONICS INDUSTRY ANALYST AT BARING SECURITIES JAPAN LTD ADDS AN OFFICIAL AT NISSAN MOTOR CO IT'S A ONETWO PUNCH THE FIRST PUNCH IS JAPAN'S RECESSION ITS WORST IN 20 YEARS NOW THE SECOND BLOW HAS CAUGHT CORPORATE JAPAN FLATFOOTED EXPORTERS HAVE BEEN COUNTING ON SALES ABROAD TO BOLSTER SAGGING PROFITS BUT WHEN THE YEN STRENGTHENS JAPANESE PRODUCTS BECOME MORE EXPENSIVE IN DOLLAR TERMS AND SALES ABROAD TUMBLE JAPAN'S TRADING PARTNERS MOST OF WHICH HAVE HUGE TRADE DEFICITS WITH THE NATION LIKE THAT IDEA FOR JAPAN HOWEVER A DROP IN FOREIGN SALES MAKES IT ALL THE MORE URGENT THAT TOKYO STIMULATE DEMAND ON THE HOMEFRONT BY LOWERING INTEREST RATES AND INCREASING PUBLIC SPENDING JAPAN'S CURRENCY WHICH HAS BEEN CLIMBING FOR TWO WEEKS SURGED FRIDAY AFTER US TREASURY SECRETARY LLOYD BENTSEN INDICATED HE FAVORED A STRONGER YEN ON MONDAY THE YEN CLOSED IN TOKYO AT 11685 AGAINST THE DOLLAR ITS STRONGEST EVER STRENGTHENING FROM 124 YEN TWO WEEKS AGO IT HAS ALSO GAINED AGAINST EUROPEAN CURRENCIES IN NEW YORK MONDAY THE DOLLAR TRADED AT 11640 YEN ANALYSTS AREN'T SURE IF THE YEN'S RALLY IS SHORTTERM OR THE BEGINNING OF A LONGERLASTING REALIGNMENT OF THE TWO CURRENCIES ECONOMIC FUNDAMENTALS IMPLY A WEAKER YEN LONGTERM OBSERVERS NOTE REFLECTING RECENT IMPROVEMENT IN THE US ECONOMY AND CONTINUED STAGNATION IN JAPAN PEOPLE WILL WAKE UP AND SEE THE YEN IS OVERVALUED SAYS A WESTERN ANALYST IN TOKYO THAT COULD HAPPEN NEXT WEEK AFTER FINANCIAL OFFICIALS FROM THE INDUSTRIAL ECONOMIES HOLD TALKS IN LONDON THEN AGAIN IT MAY NOT MANY ANALYSTS IN TOKYO EXPECT THE JAPANESE CURRENCY TO STRENGTHEN FURTHER TO 115 YEN OR EVEN 110 YEN AGAINST THE DOLLAR AND TO STAY THERE FOR SEVERAL MONTHS IN THE ABSENCE OF GOVERNMENT INTERVENTION JAPAN'S MANUFACTURERS CAN HOLD OUT AGAINST A STRONGER YEN FOR SEVERAL MONTHS OR SO BUT IF THE YEN REMAINS FIRM ECONOMISTS SAY MANY JAPANESE EXPORTERS WILL BE FORCED TO JACK UP PRICES MOST EXPORTERS' BUSINESS PLANS ASSUME THE JAPANESE CURRENCY WON'T STRENGTHEN BEYOND 120 YEN RAPID FLUCTUATION OF THE CURRENCY ISN'T FAVORABLE FOR US SAYS EIJI HIRABAYASHI A SPOKESMAN FOR TOYOTA MOTOR CORP TOYOTA'S PLANS ARE BASED ON AN EXCHANGE RATE OF ABOUT 124 YEN SONY CORP'S BUSINESS PLAN FOR THE FISCAL YEAR BEGINNING APRIL 1 TENTATIVELY ASSUMES AN EXCHANGE RATE OF 120 YEN TO THE DOLLAR IN THE THREE MONTHS TO DEC 31 A 6 RISE IN THE VALUE OF THE YEN AGAINST THE DOLLAR AND AN 18 RISE AGAINST THE POUND COST SONY 43 BILLION YEN 363 MILLION IN LOST REVENUE SAYS YUKIO OZAWA A SONY OFFICIAL A ONEYEN APPRECIATION OF THE JAPANESE CURRENCY COSTS SONY ABOUT FIVE BILLION YEN A YEAR HE ADDS IT'S EVEN TOUGHER FOR SMALLER EXPORTERS THE YEN'S RISE IS GOING TO TAKE THE LAST BIT OF OXYGEN IN THE LUNGS OF SMALL AND MEDIUMSIZED MANUFACTURERS AND JUST SQUISH IT RIGHT OUT SAYS PAUL SUMMERVILLE CHIEF ECONOMIST AT JARDINE FLEMING SECURITIES LTD RISING COSTS HAVE MADE JAPAN ONE OF THE WORST PLACES IN THE WORLD TO BE AN EXPORTER OF MANUFACTURED GOODS IT'S NOT CLEAR HOW LONG JAPANESE AUTHORITIES WILL LET GLOBAL CURRENCY TRADERS PUSH THEM AROUND YUJI TANAHASHI ADMINISTRATIVE VICE MINISTER AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAYS THE YEN'S RECENT GAINS HAVE BEEN TOO FAST AND COULD DELAY ECONOMIC RECOVERY INDEED A SENIOR FINANCE MINISTRY OFFICIAL WONDERS IF MR BENTSEN WERE ONLY JOKING WHEN HE MADE HIS COMMENTS ABOUT THE YEN SOME ANALYSTS EXPECT THE GOVERNMENT TO INTERVENE TO STOP THE YEN'S APPRECIATION IF IT STRENGTHENS BEYOND 115 YEN TO THE DOLLAR FOR THE NEXT SEVERAL MONTHS A STRONGER YEN WOULD ACTUALLY INFLATE THE JAPANESE TRADE SURPLUS BY INCREASING THE VALUE OF EXPORTS IN DOLLAR TERMS BUT ECONOMISTS BELIEVE IT WOULD NARROW THE TRADE GAP OVER THE LONGER TERM AS HIGHER PRICES ULTIMATELY TAKE THEIR TOLL ON JAPANESE EXPORTS JESPER KOLL OF SG WARBURG SECURITIES LTD CALCULATES THAT A 10 APPRECIATION IN THE YEN AGAINST THE DOLLAR WOULD REDUCE JAPAN'S GLOBAL TRADE SURPLUS BY ABOUT 10 BILLION OVER THE NEXT 15 MONTHS TAKAHIRO YANAI AN ECONOMIST AT MITSUBISHI BANK LTD DISAGREES A STRONGER YEN HE SAYS WILL BRING ABOUT NO REAL CHANGE IN THE TRADE FIGURES BECAUSE THE NATURE OF JAPANESE EXPORTS HAVE CHANGED SUBSTANTIALLY THESE DAYS HE ARGUES JAPAN'S EXPORTERS SPECIALIZE IN HIGH VALUEADDED PRODUCTS SUCH AS LUXURY CARS AND ELECTRONICS THAT ARE LESS SENSITIVE TO PRICE FLUCTUATIONS SMALL EXPORTERS COMPETING MAINLY ON A COST BASIS HAVE ALL BEEN SQUEEZED OUT HE SAYS BUT IF A STRONGER YEN DOES SLOW THE JAPANESE JUGGERNAUT THE BIGGEST WINNERS MAY BE JAPAN'S NEIGHBORS IN ASIA PARTICULARLY THOSE WITH CURRENCIES PEGGED TO THE DOLLAR RATHER THAN ITS TRADING PARTNERS IN THE WEST EXPORTERS IN MANY ASIAN COUNTRIES CONTINUE TO STEAL MARKET SHARE FROM JAPAN ECONOMISTS SAY A LONGTERM SHIFT IN THE VALUE OF THE YEN WOULD PROVE A HUGE WINDFALL FOR THEM 9302230150 930223 LETTERS TO THE EDITOR PRICKLY IN PARADISE MY WIFE AND I FELT YOUR JAN 26 PAGEONE ARTICLE THORNY QUESTION WILL THE PRICKLY PEAR BE KIWI OF THE '90S HAD ONE BARB TOO MANY WE THINK WE HAVE A LOVELY HOME IN TUCSON AS DO MANY OTHERS AND LO AND BEHOLD PART OF OUR CUSTOM LANDSCAPING CONSISTS OF PRICKLY PEAR CACTUS YET THE ARTICLE STATES THAT THE PRICKLY PEAR GROWS ABOUT AS FAR FROM PARADISE AS POSSIBLE HOW CAN THIS BE WHERE IS THIS PARADISE YOU REFER TO THAT WE ARE SO FAR AWAY FROM WILL OUR FRIENDS IN PARADISE VALLEY ARIZ WHO ALSO HAVE PRICKLY PEAR CACTUS NEED TO PETITION CITY HALL TO CHANGE THE NAME OF THEIR CITY TO PARADISE VALLEY NOT 9302230148 930223 ODDLY FILM STARS HAVE TROUBLE GETTING THEIR PICTURES DEVELOPED BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL MITCHELL GOLDSTONE THINKS HE CAN SOLVE A VEXING PROBLEM FOR MICHAEL JACKSON DURING THE POP STAR'S WIDELY SEEN TELEVISION INTERVIEW WITH OPRAH WINFREY MR JACKSON COMPLAINED THAT A SNAPSHOT OF HIM LYING IN A BURNTREATMENT CENTER'S OXYGEN CHAMBER HAD BEEN LEAKED TO THE TABLOID PRESS SEVERAL YEARS AGO THE ACCUSED CULPRIT A WORKER AT THE UNNAMED PHOTO LAB WHERE THE FILM WAS DEVELOPED THE PERSON WHO PROCESSES THE PICTURE SAYS OH MICHAEL JACKSON' AND HE MADE A COPY AND THESE PICTURES WENT ALL OVER THE WORLD MR JACKSON CHARGED THAT COMMENT LIT UP THE PHONES FOR THE NEXT SEVERAL DAYS AT MR GOLDSTONE'S 30 MINUTE PHOTOS ETC HE SAYS THE OWNER OF THE IRVINE CALIF FILMPROCESSING CENTER HAD TWO WEEKS EARLIER SENT OUT DOZENS OF HIS CONFIDENTIAL PHOTO MAILERS TO TALENT AGENTS AND FILM STUDIOS ACROSS HOLLYWOOD BUT COMPETITORS DISPUTE MR GOLDSTONE'S CLAIM TO BE THE PHOTO CENTER TO THE STARS FIRST OF ALL THEY POINT OUT HIS SHOP IS 50 MILES FROM THE MAJOR MOVIE STUDIOS AND STARSTUDDED NEIGHBORHOODS A LOT OF PEOPLE DO ACTORS SAYS EDGAR TEMORES MANAGER OF CUSTOM PRINT SHOP INC HOLLYWOOD WHICH ADVERTISES ACTORS OUR SPECIALTY ALL YOU HAVE TO DO IS BEFORE YOU THROW ANYTHING AWAY MAKE SURE IT'S TORN IN LITTLE PIECES MORRIE HALPER A SALESMAN AT ROSSI PHOTOGRAPHY IN LOS ANGELES BOASTS THAT ACTORS MICHAEL NOURI ROY SCHEIDER AND PIERCE BROSNAN AMONG OTHERS FEEL SAFE BRINGING ROLLS OF FILM TO HIS SHOP WE MIGHT LOOK AT THE PICTURES AND GIGGLE AT THEM BUT WE MAKE SURE THEY GET INTO THE PROPER HANDS HE SAYS SNIFFS CHRISTOPHER HATT A PRINTER AT MOTO PHOTO IN IRVINE THIS SEEMS LIKE A STRETCH THAT SOMEONE WOULD DO IF THEY'RE TRYING TO DRUM UP BUSINESS AND THEY HAVE NO OTHER WAY OF DOING IT BUT MR GOLDSTONE SAYS HIS LAB TAKES SPECIAL PRECAUTIONS HE REQUIRES ALL EMPLOYEES TO SIGN A ONEPAGE NONDISCLOSURE AGREEMENT AND A CARDBOARD SCREEN BLOCKS CUSTOMERS' VIEW OF PRINTS EMERGING FROM THE PROCESSING MACHINES AND ABOUT A YEAR AGO HE BOUGHT A PAPER SHREDDER SO STRAY PRINTS WOULDN'T WIND UP IN THE OUTSIDE DUMPSTER MR JACKSON DIDN'T RESPOND TO THE MASS MAILING MR GOLDSTONE CONCEDES ADDING I'M PERSONALLY SADDENED THAT MICHAEL JACKSON'S PRIVATE LIFE WAS LEAKED TO THE PUBLIC IN SUCH AN EMBARRASSING WAY BUT HE WASN'T ONE OF OUR CUSTOMERS 9302230147 930223 FINANCING BUSINESS LSB INDUSTRIES INC LSB INDUSTRIES INC OKLAHOMA CITY SAID IT CALLED FOR REDEMPTION OF ALL SHARES OUTSTANDING OF ITS 220 SERIES 1 CONVERTIBLE EXCHANGEABLE CLASS C PREFERRED STOCK AT 2088 PLUS 50 CENTS IN ACCRUED DIVIDENDS A SHARE REDEEMABLE BY THE CLOSE OF BUSINESS MARCH 23 LSB IS A DIVERSIFIED COMPANY ENGAGED IN FINANCIAL MANUFACTURING ENGINEERING AND MARKETING SERVICES HOLDERS OF THE PREFERRED MAY CONVERT INTO LSB COMMON AT ANY TIME BEFORE THE CLOSE OF BUSINESS MARCH 22 EACH SHARE OF SERIES 1 PREFERRED IS CONVERTIBLE INTO 7619 SHARES OF LSB COMMON STOCK 9302230146 930223 WHO'S NEWS TYCO TOYS INC TYCO TOYS INC MOUNT LAUREL NJ LASALLE D LEFFALL CHAIRMAN OF THE SURGERY DEPARTMENT AT HOWARD UNIVERSITY WAS NAMED A DIRECTOR OF THIS TOY MAKER EXPANDING THE BOARD TO 10 9302230145 930223 WHAT'S NEWS WORLDWIDE THE UN DECIDED TO SET UP A WAR CRIMES TRIBUNAL FOR THE BALKANS THE SECURITY COUNCIL VOTED UNANIMOUSLY TO ESTABLISH AN INTERNATIONAL TRIBUNAL TO PROSECUTE THOSE RESPONSIBLE FOR MASS KILLINGS RAPES AND OTHER CRIMES IN THE FORMER YUGOSLAVIA SERBS CROATS AND MUSLIMS ALL HAVE BEEN ACCUSED OF CRIMES IN THE WAR UN INVESTIGATORS BLAME SERBS FOR THE WORST ATROCITIES FROM THE CREATION OF NAZILIKE DETENTION CAMPS TO FORCED DEPORTATIONS AND SYSTEMATIC RAPE OF MUSLIMS THE US PREPARED TO ANNOUNCE PLANS TO PARACHUTE SUPPLIES INTO EASTERN BOSNIA CLINTON INTENDED TO DISCUSS THE AIRDROP DURING A MEETING TODAY WITH UN CHIEF BOUTROSGHALI CHRISTOPHER ARRIVED IN ISRAEL SEEKING WAYS TO OVERCOME A DISPUTE OVER PALESTINIAN DEPORTATIONS SO THAT MIDEAST TALKS CAN RESUME EARLIER IN THE DAY HE MADE AN UNSCHEDULED SIDE TRIP TO BEIRUT THE FIRST VISIT BY A US SECRETARY OF STATE IN 10 YEARS HE IS PLANNING TWO DAYS OF TALKS IN ISRAEL THE LAST STOP OF A SEVENNATION VISIT A 12MEMBER FEDERAL JURY WAS SWORN IN TO TRY FOUR WHITE LOS ANGELES POLICEMEN ACCUSED IN THE 1991 VIDEOTAPED BEATING OF BLACK MOTORIST RODNEY KING THE JURY FOR THE FEDERAL TRIAL CONSISTS OF TWO BLACKS ONE HISPANIC AND NINE WHITES IN AN EARLIER STATE TRIAL THE OFFICERS WERE ACQUITTED ON MOST CHARGES BY A JURY THAT INCLUDED NO BLACKS THE SUPREME COURT LET STAND A LOWERCOURT RULING THAT SAID FEDERAL LAW PROHIBITS PESTICIDES THAT MAY CAUSE CANCER REGARDLESS OF HOW SMALL THE RISK THE LOWER COURT HAD REVERSED A BUSH ADMINISTRATION REGULATION ALLOWING CERTAIN PESTICIDE RESIDUES IN PROCESSED FOOD THAT WERE FOUND TO CAUSE ONLY A NEGLIGIBLE RISK OF CANCER THE JUSTICES LET STAND A TENNESSEE SUPREME COURT RULING THAT THREW OUT THE CASE OF A DIVORCED WOMAN WHO WANTED TO USE FROZEN EMBRYOS TO MAKE HER EXHUSBAND A FATHER AGAINST HIS WILL ALSO THE HIGH COURT AGREED TO DECIDE HOW FAR PUBLIC SCHOOL DISTRICTS MUST GO IN PAYING FOR THE PRIVATE SCHOOLING OF STUDENTS WITH SPECIAL EDUCATIONAL NEEDS A NORTH KOREAN ENVOY SAID HIS GOVERNMENT COULD TEAR UP AN AGREEMENT ALLOWING INTERNATIONAL INSPECTORS INTO ITS NUCLEAR FACILITIES IF THEY INSIST ON VISITING TWO SECRET SITES RI TCHEUL NORTH KOREA'S PERMANENT REPRESENTATIVE TO THE UN IN GENEVA SAID THE DISPUTE WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY PUT THE ACCORD IN JEOPARDY THE STATE DEPARTMENT ANNOUNCED THE REPLACEMENT OF THE OFFICIAL RESPONSIBLE FOR AID TO THE FORMER SOVIET UNION AFTER HE ANGERED HIS SUPERIORS BY PREDICTING THE OUSTER OF YELTSIN A DEPARTMENT AIDE SAID THE DECISION TO REPLACE RICHARD ARMITAGE WHO IS TO BE SUCCEEDED BY THOMAS SIMONS WAS UNRELATED TO THE REMARKS YELTSIN DECLARED THERE WERE FORCES IN RUSSIA HOPING TO DRAG THE MILITARY INTO POLITICS AND HE APPEALED TO THE ARMED SERVICES TO ACT AS GUARANTORS OF STABILITY THE PRESIDENT IN A PUBLISHED INTERVIEW APPEARED TO BE AIMING HIS CRITICISM AT HARDLINE NATIONALISTS INCLUDING SMALL RADICAL GROUPS IN THE MILITARY THE BRADY BILL WAS REINTRODUCED IN CONGRESS WHERE ADVOCATES AND OPPONENTS OF THE GUN CONTROL LEGISLATION AGREE THAT PASSAGE IS LIKELY THIS YEAR THE BILL WHICH IS SUPPORTED BY PRESIDENT CLINTON WOULD REQUIRE A WAITING PERIOD FOR HANDGUN PURCHASES GIVING AUTHORITIES TIME TO CHECK APPLICANTS FOR CRIMINAL RECORDS OR MENTAL PROBLEMS US TROOPS POSTPONED A PULLOUT FROM THE SOMALI CITY OF KISMAYU AFTER AT LEAST SEVEN SOMALIS WERE KILLED IN FIGHTING THERE AND AN IRISH NURSE WAS SHOT TO DEATH IN AN AMBUSH ON A RELIEF CONVOY ABOUT 1000 US TROOPS IN KISMAYU WERE TO HAVE TRANSFERRED COMMAND TO BELGIAN FORCES TODAY IN PREPARATION FOR RETURNING HOME GOVERNMENT AND REBEL TROOPS ESCALATED THEIR FIGHTING FOR THE CITY OF HUAMBO IN CENTRAL ANGOLA BUT THE TWO SIDES REPORTEDLY AGREED TO RESUME PEACE TALKS THIS WEEK RELIEF WORKERS AND UN OFFICIALS HAVE BEEN UNABLE TO APPROACH HUAMBO FOR SIX WEEKS DESPITE REQUESTS FOR A TRUCE TO EVACUATE CIVILIANS AND 15000 WOUNDED TWO TEAMS OF UN INSPECTORS RUSHED TO INSTALLATIONS SOMEWHERE IN IRAQ TO CHECK WHAT THEY CALLED VERY IMPORTANT INFORMATION ABOUT THE COUNTRY'S LONGRANGE MISSILE PROGRAM AN IRAQI OFFICIAL MAINTAINED THAT NOTHING WAS FOUND AND THE CHIEF UN INSPECTOR INSISTED THERE WAS NO CRISIS BUT REFUSED FURTHER COMMENT 9302230144 930223 LETTERS TO THE EDITOR HIDDEN AGENDA BEHIND GUNCONTROL MEASURE A LIMIT OF BUYING ONE HANDGUN A MONTH SEEMS PERFECTLY REASONABLE NRA DECLARES WAR OVER GUNCONTROL IN VIRGINIA AS PROPOSAL TO LIMIT PURCHASES GAINS POPULARITY FEB 4 UNTIL ONE CONSIDERS THE MEASURES THAT WOULD BE NEEDED TO ENFORCE THE LAW AND THE HIDDEN AGENDA BEHIND IT THE GUNCONTROL LOBBY HAS BEEN TRYING TO REPEAL VIRGINIA'S INSTANT CHECK SYSTEM FROM ITS INCEPTION BECAUSE CONVICTED FELONS CAN BE SCREENED OUT WITHOUT CREATING A LIST OF FIREARMS OWNERS AND THE GUNS THEY BUY THEY KNOW SUCH A REGISTRY WILL BE NEEDED IF THEY EVER ACHIEVE THEIR AVOWED GOAL OF HANDGUN PROHIBITION SO THAT THE POLICE WILL BE ABLE TO CONFISCATE THEM THE RATIONING PLAN WAS PROPOSED BECAUSE A REGISTRY OF GUN BUYERS AND THEIR PURCHASES WOULD HAVE TO BE CREATED TO IMPLEMENT IT A REPORT BY THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS BATF SUGGESTING THAT A QUARTER OF THE GUNS SEIZED IN NEW YORK CITY AND A THIRD OF THE GUNS SEIZED IN WASHINGTON CAME FROM VIRGINIA IS USED TO JUSTIFY THIS LAW A STUDY DONE BY THE CONGRESSIONAL RESEARCH SERVICE REVEALS THAT WEAPONS TRACES ARE NOT AN ACCURATE REFLECTION OF REALITY BECAUSE TRACE REQUESTS ARE MADE FOR ONLY A SMALL FRACTION OF THE GUNS SEIZED BY THE POLICE AND THE SELECTION PROCESS IS NOT RANDOM A RATIONING PLAN WOULD ACTUALLY MAKE IT HARDER TO CATCH GUN TRAFFICKERS A GUNRUNNER IS MOST LIKELY TO BE CAUGHT WHEN HE PURCHASES MORE THAN ONE GUN FROM A DEALER WHO THEN REPORTS THE SALE TO THE BATF VIRGINIA DEALERS SOLD MORE THAN 100000 GUNS IN 1991 AND REPORTED ONLY 3410 MULTIPLE PURCHASES THE AUTHORITIES PROSECUTED IN ONLY 60 OF THESE CASES THE CHART OF WHAT WEAPONS ARE USED TO COMMIT HOMICIDES IN VIRGINIA COULD HAVE GIVEN PEOPLE THE IMPRESSION THAT THE STATE HAD A PARTICULARLY HIGH RATE OF GUN VIOLENCE THE MURDER RATE IN WASHINGTON WHERE HANDGUNS ARE BANNED IS ALMOST 10 TIMES HIGHER THAN IN VIRGINIA HANDGUNS WERE USED IN 80 OF THE CAPITAL'S MURDERS COMPARED WITH ONLY 58 OF VIRGINIA'S CLEARLY NOT EVEN THE MOST DRACONIAN GUNCONTROL LAWS SUCCEED IN CONTROLLING VIOLENT CRIME 9302230143 930223 ECONOMISTS SAY JOB GAINS TO CONTINUE TO BE SLOW WASHINGTON STRONG GAINS IN PRODUCTIVITY SUGGEST THAT EMPLOYMENT GAINS WILL CONTINUE TO BE SLOW THIS YEAR AND NEXT AND THAT THE UNEMPLOYMENT RATE WILL REMAIN HIGH ACCORDING TO A SURVEY OF THE NATIONAL ASSOCIATION OF BUSINESS ECONOMISTS BUT THE GROUP SAID THE ECONOMY IS DEFINITELY IMPROVING ALBEIT SLOWLY THE ASSOCIATION PREDICTS THE ECONOMY WILL GROW ROUGHLY 32 THIS YEAR AND NEXT WITH HOUSING LEADING THE EXPANSION AND CONSUMPTION AND NET EXPORTS HOLDING BACK THE ECONOMY THE REPORT INDICATED THAT MOST OF THE 35 NABE MEMBERS SURVEYED BELIEVE INFLATION WILL REMAIN LOW THIS YEAR BEFORE IT BEGINS TO CREEP UPWARD IN 1994 MEMBERS ALSO PREDICT THE GROSS DOMESTIC PRODUCT PRICE DEFLATOR THE BROADEST MEASURE OF INFLATION WILL RISE 25 IN 1993 AFTER A 26 RISE LAST YEAR AND THE GROUP ESTIMATES THAT INFLATION WILL RISE 3 IN 1994 9302230142 930223 RAYTHEON TAIWAN SAID TO DISCUSS ARMS VENTURE WASHINGTON RAYTHEON CO IS NEGOTIATING AN AGREEMENT VALUED AT 13 BILLION TO JOINTLY PRODUCE WITH TAIWAN A MODIFIED VERSION OF RAYTHEON'S PATRIOT AIR DEFENSE SYSTEM ACCORDING TO DEFENSE NEWS A WEEKLY PUBLICATION HERE THE MODIFIED AIR DEFENSE SYSTEM OR MADS WOULD REPLACE TAIWAN'S NIKE AIR DEFENSE SYSTEM THE WEEKLY SAID CITING STATE DEPARTMENT DOCUMENTS THE PROPOSED PACT IS CONSIDERED POLITICALLY SENSITIVE BECAUSE CHINA OPPOSES THE SALE OF ADVANCED TECHNOLOGY TO TAIWAN DEFENSE NEWS SAID IT WASN'T CLEAR FROM THE DEFENSE NEWS ARTICLE WHAT RAYTHEON'S SHARE OF THE 13 BILLION DEAL WOULD BE IN LEXINGTON MASS A SPOKESMAN FOR RAYTHEON A DEFENSE AEROSPACE AND APPLIANCE CONCERN DECLINED TO COMMENT ON THE DEFENSE NEWS ARTICLE THE WEEKLY SAID TAIWAN WOULD PURCHASE SEVEN MISSILE FIRING UNITS AND EQUIPMENT FROM RAYTHEON WHICH WOULD SUPPLY TRAINING AND TECHNICAL SUPPORT A STATE DEPARTMENT SPOKESMAN CONFIRMED THAT THE AGENCY NOTIFIED CONGRESS LAST YEAR OF A PROPOSED LICENSE TO RAYTHEON FOR EXPORTS OF EQUIPMENT TO TAIWAN FOR AN AIR DEFENSE SYSTEM 9302230141 930223 FINANCING BUSINESS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK PLANS TO OFFER 250 MILLION IN 725 DEBENTURES DUE 2023 TO FUND A SHARE REPURCHASE PROGRAM UNDER THE PROGRAM THE PHARMACEUTICAL COMPANY'S REMAINING AUTHORIZATION IS FOR NINE MILLION COMMON SHARES THE SHARES CAN BE BOUGHT IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS AND MAY BE USED FOR THE COMPANY'S EMPLOYEE BENEFITS PROGRAM THE COMPANY CURRENTLY HAS 313 MILLION SHARES OUTSTANDING 9302230140 930204 POLITICS & POLICY NRA DECLARES WAR OVER GUNCONTROL IN VIRGINIA AS PROPOSAL TO LIMIT PURCHASES GAINS POPULARITY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL RICHMOND VA AS A STATE GUNCONTROL BILL GAINS POPULARITY HERE THE NATIONAL RIFLE ASSOCIATION IS GETTING SERIOUS AIMING TO KILL THE LEGISLATION THE NRA HAS EVEN WHEELED UP THE FIRST MARYLAND ARTILLERY THE ARTILLERY UNIT A CIVIL WAR REENACTMENT GROUP BASED IN VIRGINIA TURNS UP IN FULLPAGE NEWSPAPER ADS AS ONE OF DOZENS OF GUN AND HUNTING CLUBS THAT ARE SUPPORTING THE NRA'S COSTLY AND WIDERANGING EFFORTS TO DEFEAT A MEASURE THAT WOULD LIMIT AN INDIVIDUAL TO THE PURCHASE OF ONE HANDGUN A MONTH IN THE STATE'S BUSY GUN SHOPS PEOPLE WANT SENSIBLE GUN LAWS AND WE'RE GOING TO WIN THIS ONE SAYS DEMOCRATIC GOV L DOUGLAS WILDER PEOPLE JUST CAN'T UNDERSTAND WHY ANYONE WOULD NEED TO BUY MORE THAN ONE HANDGUN A MONTH THE LEGISLATION PROPOSED LAST MONTH STEMS FROM A BUREAU OF ALCOHOL TOBACCO AND FIREARMS REPORT IN DECEMBER THAT 26 OF TRACEABLE GUNS SEIZED IN NEW YORK CITY AND 36 OF THE GUNS SEIZED IN WASHINGTON DC HAD BEEN BOUGHT IN VIRGINIA GUNCONTROL SENTIMENT HAD ALREADY BEEN IGNITED HERE BY A SPECIAL ANTIGUN EDITION OF BATMAN COMIC BOOKS CALLED SEDUCTION OF THE GUN PUBLISHED LAST YEAR IN THE STORY A POLICE INFORMER SETS UP A BIG HANDGUN PURCHASE IN THE STATE'S CLOSEST EQUIVALENT TO ATLANTIC CITY THE RESORT TOWN OF VIRGINIA BEACH I'VE TALKED WITH MY PEOPLE DOWN IN VIRGINIA THE INFORMER TELLS A GOTHAM GANG LEADER IT'S SET ALL ATTACK90S AND THEY'LL DO THE CONVERSIONS TO FULL AUTOMATIC WE HAD 10YEAROLDS READING THAT COMIC BOOK SAYS DEMOCRATIC STATE SEN ED HOLLAND A SPONSOR OF THE GUNRATIONING BILL THEY TOLD THEIR PARENTS ABOUT IT AND WE'VE HEARD FROM THE PARENTS WE HAVE A PUBLIC OUTCRY HERE IT'S HYSTERIA SAYS NRA EXECUTIVE DIRECTOR WAYNE LAPIERRE BUYING GUNS IS LEGAL IN THIS COUNTRY NO ONE SAYS YOU CAN ONLY READ ONE NEWSPAPER A MONTH NO ONE SAYS YOU CAN ONLY GO TO CHURCH ONCE A MONTH NO ONE OUGHT TO SAY YOU SHOULD BE LIMITED IN THE NUMBER OF GUNS YOU CAN BUY THIS WEEK THE NRA BEGAN RUNNING TV COMMERCIALS OPPOSING THE LEGISLATION TO AUGMENT ITS NEWSPAPER ADS BUT LOCAL NRA LEADERS SAY THEIRS IS AN UPHILL FIGHT AND MEANWHILE THE OUTCRY FOR SIMILAR CONTROLS IS SPREADING PEOPLE HAVE BEEN CALLING US FROM ALL OVER THE COUNTRY SAYS O RANDOLPH ROLLINS VIRGINIA'S SECRETARY OF PUBLIC SAFETY OTHER PEOPLE WANT TO DO WHAT WE'RE DOING HERE THE NRA IS FIGHTING A PRECEDENT IF IT CAN BE DONE IN VIRGINIA IT CAN BE DONE ANYWHERE INDEED A BILL MODELED ON GOV WILDER'S PROPOSAL HAS BEEN INTRODUCED IN CONGRESS BY NEW JERSEY DEMOCRAT ROBERT G TORRICELLI IT WOULD RATION THE SALE OF HANDGUNS NATIONWIDE TO ONE PER PERSON PER MONTH VIOLATORS WOULD BE SUBJECT TO A 1000 FINE AND UP TO A YEAR IN JAIL FOR THE NRA THESE ARE PERILOUS TIMES BOTH PRESIDENTS REAGAN AND BUSH WERE LIFETIME MEMBERS OF THE NRA AND SUPPORTED NRA POLICIES AFTER MR REAGAN LEFT OFFICE HE CAME OUT IN SUPPORT OF THE SOCALLED BRADY BILL WHICH WOULD IMPOSE A WAITING PERIOD ON ANYONE SEEKING TO BUY A HANDGUN THE BILL IS NAMED FOR JAMES BRADY MR REAGAN'S PRESS SECRETARY WHO WAS BADLY WOUNDED BY JOHN HINCKLEY DURING AN ASSASSINATION ATTEMPT ON THE FORMER PRESIDENT MR BRADY AND HIS WIFE SARAH THROUGH THEIR ORGANIZATION HANDGUN CONTROL CONTINUE TO LEAD THE FIGHT FOR GUNCONTROL LEGISLATION PRESIDENT CLINTON HAS NEVER BEEN A MEMBER OF THE NRA AND IN HIS CAMPAIGN PLEDGED TO SIGN THE BRADY BILL AND TO WORK FOR A BAN ON SEMIAUTOMATIC ASSAULT WEAPONS HE IS ALSO IN FAVOR OF LIMITING ACCESS TO LARGE AMMUNITION CLIPS USED IN PISTOLS AND RIFLES THE PRESIDENT IS BEHIND US SAYS MRS BRADY THE NEW MEMBERS OF CONGRESS ARE SYMPATHETIC THIS HAS GOT TO BE THE NRA'S WORST NIGHTMARE THE NRA DOESN'T DENY IT BILL CLINTON KISSED SARAH BRADY AT CAMPAIGN RALLIES THE NRA SAYS IN A NOTE TO ITS MEMBERS HE DELIVERED ANTIGUN SPEECHES AND PROMISED GUN BANS BY THE DOZENS AND NOW ONE OF HIS FIRST MOVES AS PRESIDENT IS TO TURN HIS ADMINISTRATION INTO A GUNGRABBING GOON SQUAD MAKE NO MISTAKE BILL CLINTON IS THE GUN OWNER'S WORST NIGHTMARE SLIGHTLY DIFFERENT VERSIONS OF THE BRADY BILL WERE PASSED BY THE HOUSE AND THE SENATE IN 1991 BUT EFFORTS TO PASS A COMPROMISE BILL IN THE SENATE FAILED AND THE MEASURE DIED THE BILL WILL BE REINTRODUCED LATER THIS MONTH AND WILL BEGIN ANEW ITS TWISTING JOURNEY THROUGH CONGRESS LEGISLATION WILL ALSO BE REINTRODUCED FOR A TOTAL BAN ON MILITARYSTYLE ASSAULT WEAPONS THAT PROVISION WAS INCLUDED IN A 1991 ANTICRIME PACKAGE BUT WAS DROPPED DURING A CONFERENCE BETWEEN MEMBERS OF THE HOUSE AND SENATE INTEREST IN THE ASSAULTWEAPONS BAN TOOK OFF IN WASHINGTON WHEN A GUNMAN KILLED TWO EMPLOYEES OF THE CENTRAL INTELLIGENCE AGENCY JAN 25 AS THEY WAITED IN THEIR AUTOMOBILES TO MAKE THE TURN INTO CIA HEADQUARTERS IN LANGLEY VA A DC SUBURB THREE OTHERS WERE WOUNDED THE GUNMAN WHO ESCAPED HAD USED THE CIVILIAN VERSION OF THE AK47 ASSAULT WEAPON BUT FOR ALL THE WORRY ABOUT ASSAULT WEAPONS HANDGUNS REMAIN THE WEAPON OF CHOICE WE HAD 219 MURDERS IN 1987 AND 340 IN 1991 COMMITTED WITH HANDGUNS SAYS MR ROLLINS VIRGINIA'S PUBLIC SAFETY SECRETARY IT'S OUT OF CONTROL VIRGINIA'S HANDGUNS ALSO ARE TURNING UP ALL ALONG THE EAST COAST LARGELY BECAUSE IT IS SO EASY TO BUY GUNS IN THE STATE PEOPLE COME INTO VIRGINIA FROM ALL OVER TO BUY GUNS SAYS MR ROLLINS YOU CAN BUY A TEC9 PISTOL HERE FOR ABOUT 250 ON THE STREET IN NEW YORK WHERE THEY HAVE VERY TOUGH GUN LAWS YOU CAN SELL IT FOR 1200 HE SAYS THE GUN TRAFFICKERS ARE ALSO USING THEIR PROFITS TO BUY DRUGS IN NEW YORK FOR SALE IN VIRGINIA WHERE THEY FETCH HIGHER PRICES THE NRA'S MR LAPIERRE SAYS THE VIRGINIA GUNCONTROL BILL IS JUST ANOTHER GUNCONTROL BILL THAT WON'T HELP SOLVE THE CRIME PROBLEM IN VIRGINIA OR ANYWHERE ELSE THE PROBLEM HE SAYS IS THAT THE CRIMINALJUSTICE SYSTEM HAS BROKEN DOWN AND PEOPLE ARE SCARED HE SAYS THE NRA'S MEMBERSHIP IS GROWING BY 1000 A DAY AND NOW TOPS THREE MILLION GUN OWNERS ARE WAKING UP THEY SEE THE THREAT MR LAPIERRE SAYS THAT IF MR CLINTON WANTS TO GET VIOLENT CRIMINALS OFF THE STREET WE'LL WORK WITH HIM HAND IN HAND BUT IF HE JUST GOES AHEAD WITH THAT GUNCONTROL STUFF WE'LL GO HEAD TO HEAD WITH HIM MRS BRADY SEES A DIFFERENT SITUATION WHAT'S HAPPENING OUT THERE WITH ALL THESE GUNS HAS SUNK IN ON THE AMERICAN PEOPLE AND NOW THE WORD IS FINALLY WORKING ITS WAY UP TO THE LEGISLATORS SHE SAYS VIOLENCE IS OUT OF CONTROL AND EVERYBODY RECOGNIZES WE'VE GOT TO DO SOMETHING ABOUT IT SEE RELATED LETTER LETTERS TO THE EDITOR HIDDEN AGENDA BEHIND GUNCONTROL MEASURE WSJ FEB 23 1993 9302040023 9302230139 930223 LEISURE & ARTS ON SPORTS HOT PROSPECTS FOR LILLEHAMMER BY FREDERICK C KLEIN WINTER PARK COLO WHEN YOUR NAME IS PICABO AND IT'S PRONOUNCED PEEKABOO IT'S NO WONDER YOU MIGHT TURN OUT A BIT UH UNUSUAL I'VE HAD SOME UPS AND DOWNS YOU CAN SAY I HAVE TROUBLE WITH AUTHORITY AND YEAH MAYBE MY NAME HAD SOMETHING TO DO WITH THAT I MEAN WHEN I WAS LITTLE IT WAS 24HOURADAY TEASING SAID PICABO STREET BUT THIS SEASON I DECIDED TO GO WITH THE PROGRAM AND IT'S REALLY HELPED AND NOW THAT I'M OLDER I LIKE MY NAME A LOT BETTER PEOPLE KEEP TELLING ME IT'S SO NEAT AND ORIGINAL THE NAME PICABO IS LIKELY TO REMAIN ORIGINAL FOR THE FORESEEABLE FUTURE BUT CHANCES ALSO ARE IT WILL BECOME BETTER KNOWN ITS POSSESSOR A FRECKLEFACED HONEYBLOND 20YEAROLD AND SELFPROCLAIMED WILD ONE POPPED TO THE TOP OF THE US WOMEN'S SKI HILL WITH A SECONDPLACE FINISH IN THE COMBINED EVENT AT THE RECENT WORLD CHAMPIONSHIPS IN MORIOKA JAPAN AND LAST WEEK AT THE US ALPINE CHAMPIONSHIPS HERE SHE PROVED THAT SHOWING WAS NO FLUKE WITH A VICTORY IN THE SUPERG A THIRD PLACE IN THE DOWNHILL AND A SECOND IN THE COMBINED WHICH WAS A TWOPART RACE SLALOM AND DOWNHILL AT MORIOKA BUT A STATISTICAL COMPILATION HERE STREET'S EMERGENCE CAPPED A MEET THAT HAD THE SPORT'S OVERSEERS CROWING THAT WITH ANOTHER WINTER OLYMPICS ONLY A YEAR AWAY THE WOMEN'S SIDE OF AMERICAN SKIING IS VERY MUCH ON THE UPSLOPE KRISTI TERZIAN LONG HAMPERED BY BAD KNEES GAINED ELITE STATUS BY VAULTING PAST WORLD SILVER MEDALIST JULIE PARISIEN TO WIN THE SLALOM ON SATURDAY THE NEXT DAY 25YEAROLD DIANN ROFFESTEINROTTER A SILVER MEDALIST AT THE 1992 OLYMPICS AT ALBERTVILLE FRANCE STRUCK A BLOW FOR THE VETERANS BY WINNING THE GIANT SLALOM THIS IS THE BEST DEPTH AMONG THE WOMEN WE'VE HAD IN A LONG TIME MAYBE EVER DECLARED DENNIS AGEE THE ALPINE PROGRAM DIRECTOR FOR US SKIING WE WENT TO THE ALBERTVILLE GAMES WITH THREE WOMEN WHO WERE LEGITIMATE MEDAL CONTENDERS WE SHOULD GO TO LILLEHAMMER NORWEGIAN SITE OF THE 1994 FESTIVITIES WITH SIX OR SEVEN THE MEN'S SIDE OF THE SLATE WASN'T NEARLY SO UPBEAT AT AN EVENT THAT ISN'T UP TO WORLD CUPCIRCUIT STANDARDS BUT IS IMPORTANT FOR THE DOMESTIC PUBLICITY IT GENERATES ESPN COVERED THURSDAY'S FRIDAY'S AND SATURDAY'S DOINGS AND FOR ITS IMPACT ON US TEAM RANKINGS INDEED GOING INTO YESTERDAY'S FINAL RACE THE MEN'S GIANT SLALOM CANADIANS HAD WON TWO FIRST PLACES TO THE US'S ONE AND CLAIMED THREE OTHER MEDALS BESIDES CARY MULLEN A WORLD CUP REGULAR FROM BANFF ALBERTA WON BOTH THURSDAY'S DOWNHILL AND FRIDAY'S SUPERG WITH TOMMY MOE A 22YEAROLD ALASKAN SECOND IN EACH AJ KITT THIRD IN THE DOWNHILL AT MORIOKA AND THE TOP US MALE SKIER INTERNATIONALLY HAD TO SETTLE FOR A THIRD IN HIS SPECIALTY THIS IS A BIG MEET FOR US TOO GRINNED JOE CROSSAN A NATIVE OF BARRIE ONTARIO WHO EARNED A SILVER MEDAL IN THE SLALOM ESPN IS BIG IN CANADA YOU KNOW THE SOLE US MEN'S WIN BEFORE YESTERDAY WAS A GOOD ONE THOUGH MATT GROSJEAN A SLIGHT 22YEAROLD FROM STEAMBOAT SPRINGS COLO EDGED CROSSAN BY A TOTAL OF 04SECOND IN SATURDAY'S TWORUN SLALOM AND HAD TO NEGOTIATE A SNOW SQUALL THAT HIT THE COURSE JUST SECONDS BEFORE HIS FINAL RUN TO DO IT I COULDN'T SEE THE GROUND AT THE START HE SAID OF HIS HEROICS I KIND OF SKIED BY BRAILLE GROSJEAN WAS THE DEFENDING CHAMP AND A 10THPLACE FINISHER AT ALBERTVILLE BUT THE WIN STILL WAS SOMETHING OF A COMEBACK FOR HIM BECAUSE OF A DISAPPOINTING EUROPEAN CAMPAIGN IN WHICH HE HASN'T PLACED HIGHER THAN 14TH THIS OUGHT TO DO SOMETHING FOR MY CONFIDENCE SAID HE THE CANADIANS ALSO SCORED ON THE WOMEN'S SIDE WITH LINDSEY ROBERTS OF ROSSLAND BRITISH COLUMBIA TAKING THE DOWNHILL AND GETTING A THIRD IN THE SUPERG BUT HERS WERE THE ONLY MEDALS OF 15 TO ESCAPE THE HOME TEAM OF THE US WOMEN'S GOLDS TERZIAN'S WAS THE MOST SURPRISING AT AGE 25 THE UTAH RESIDENT HAD SURVIVED THREE ROUNDS OF KNEE SURGERY SHE SAID SHE'D ALL BUT GIVEN UP THE SPORT AFTER THE LATEST MISHAP KEPT HER FROM TRYING TO QUALIFY FOR THE '92 GAMES BUT WATCHED THEM ON TELEVISION AND DECIDED SHE WASN'T READY TO LET IT GO YET SHE ADDED AFTER HER WIN THIS IS A GOOD BOOST FOR ME AND NONE TOO SOON THE PRIZE FOR OVERCOMING WEATHER ADVERSITY WENT TO ROFFESTEINROTTER BECAUSE THE SECOND RUN OF HER GIANTSLALOM VICTORY SUNDAY CAME IN GALEFORCE WINDS AND WITH A MINUS25DEGREE WINDCHILL READING ALL I SAW ON THE WAY DOWN WAS A LITTLE RED AND BLUE FOR THE COLORS OF THE GATES AND A LOT OF WHITE SHE SAID ROFFESTEINROTTER WAS WITHOUT MEDALS BEFORE SUNDAY DESPITE HER FAVORITE'S STATUS BUT SAW A POSITIVE SIDE TO THAT IT WAS A REALLY COMPETITIVE MEET SHE SAID THIS VIEW WAS SECONDED BY PARISIEN THE WORLD'S NO 1RANKED SLALOMIST WHOSE TWO SECONDS AND A THIRD NETTED HER THE COMBINED GOLD IT WAS ULTRAINTENSE AND THAT'S GOOD SHE DECLARED UNTIL HER WORLD CHAMPIONSHIP BREAKTHROUGH STREET WAS CLASSIFIED AS ULTRA TOO BUT IN ANOTHER SENSE SHE WAS OUR BAD GIRL A KIND OF JOHN MCENROE OF SKIING SAID PAUL MAJOR THE US WOMEN'S COACH WHICH WAS A SHAME BECAUSE OF ALL HER ENERGY AND TALENT STREET'S ANTICS TWICE GOT HER KICKED OUT OF NATIONALTEAM TRAINING CAMPS AND MAJOR SAID HE HAD HER ON DOUBLE SUPER PROBATION TO START THIS SEASON SHE'D DONE WELL IN SECONDTIER EVENTS SUCH AS THE NORAM CHAMPIONSHIPS BUT BEFORE MORIOKA NEVER PLACED HIGHER THAN EIGHTH IN A TOPGRADE INTERNATIONAL EVENT I'VE CHANGED A LOT LATELY MAINLY IN THAT I'M LISTENING BETTER REMARKED THE SKIER CALLED PEEK BY FRIENDS WHO LIVES IN SUN VALLEY IDAHO AND SAYS HER NAME HAS INDIAN ROOTS IT USED TO BE THAT IF SOMEONE TOLD ME TO DO SOMETHING ONE WAY I'D DO IT ANOTHER ON PRINCIPLE BUT NO MORE AND I'M TRAINING HARDER TOO THAT SHE'S ALSO TONED DOWN HER EXUBERANCE IS SEEN IN THE BIOGRAPHIES SHE'S FILLED OUT FOR US SKIING LAST SEASON SHE LISTED HER HOBBIES AS MUD WRESTLING WATCHING THE TV SHOW AMERICAN GLADIATORS AND MAKING WHOOPEE WITH BOYFRIEND MIKE MAKAR THIS YEAR IT'S SIMPLY FISHING MIKE VOLLEYBALL AND FUN BUT THAT'S FOR PUBLIC CONSUMPTION SHE SMILED IN MOST WAYS I'M STILL ME 9302230138 930223 DRESS BARN'S PROFIT JUMPED STAMFORD CONN DRESS BARN INC SAID FISCAL SECONDQUARTER PROFIT ROSE 94 AIDED BY IMPROVED MARGINS AND A BOOST IN SAMESTORE SALES AT THE END OF THE QUARTER DRESS BARN HAD 595 STORES UP FROM 537 A YEAR EARLIER THE COMPANY PLANS TO INCREASE TO MORE THAN 700 STORES BY THE FALL 9302230137 930223 ASPIN SHOOTS DOWN PLAN TO CUT MILSTAR PROGRAM WASHINGTON DEFENSE SECRETARY LES ASPIN TOLD THE AIR FORCE THAT IT CAN'T TERMINATE LOCKHEED CORP'S MULTIBILLIONDOLLAR MILSTAR SATELLITE PROGRAM A PENTAGON OFFICIAL SAID NOW IN ORDER TO ACHIEVE THE 28 BILLION IN CUTS FROM ITS FISCAL 1994 BUDGET THAT MR ASPIN THIS MONTH ORDERED IT TO MAKE THE AIR FORCE IS CONTEMPLATING HALVING ITS FORCE OF B1 AND B52 BOMBERS THE OFFICIAL SAID AS EXPECTED THE AIR FORCE'S PROPOSAL TO TERMINATE MILSTAR RAN INTO STIFF OPPOSITION FROM THE ARMY THE NAVY THE JOINT CHIEFS OF STAFF AND OTHER PROSPECTIVE USERS OF THE SATELLITE'S MILITARY COMMUNICATIONS NETWORK THE AIR FORCE WAS TOLD NICE TRY BUT THE OFFICIAL SAID NOW THEY'RE BEING TOLD TO LOOK AT THE NEXT OPTION DOWN THE LINE THAT OPTION APPEARS TO BE HALVING THE MANNED BOMBER FORCE WHICH WOULD LEAVE THE AIR FORCE WITH ABOUT 50 B1 BOMBERS AND CLOSE TO 100 OF THE OLDER B52S THE B1 FLIES FROM BASES IN KANSAS THE DAKOTAS AND TEXAS THE B52 FLIES FROM TWO SITES IN MICHIGAN AND FROM BASES IN ARKANSAS LOUISIANA NEW YORK AND NORTH DAKOTA AS WELL AS FROM AN INSTALLATION IN TEXAS THAT IS CLOSING 9302230136 930223 GM IS DISCUSSING SALE OF GROUP LOTUS UNIT WITH VARIOUS SUITORS DETROIT GENERAL MOTORS CORP SAID IT IS DISCUSSING THE POSSIBLE SALE OF ITS GROUP LOTUS LUXURY SPORTS CAR UNIT WITH VARIOUS INTERESTED GROUPS GM SAID ONE SUITOR IS A MANAGEMENTLED GROUP HEADED BY ADRIAN PALMER MANAGING DIRECTOR OF LOTUS CARS LTD A GM SPOKESMAN WOULDN'T IDENTIFY THE OTHER GROUPS BUT SAID THE DISCUSSIONS ARE IN THE EARLY STAGES GM ACQUIRED LOTUS IN 1986 FOR 318 MILLION MAINLY TO ACQUIRE ENGINEERING EXPERTISE FOR HIGHPERFORMANCE VEHICLES LOTUS SOLD ABOUT 150 CARS IN 1992 IN THE US ABOUT HALF OF WHAT IT SOLD IN 1988 ITS PEAK YEAR BUT SLIGHTLY HIGHER THAN THE 120 CARS SOLD IN 1986 LOTUS SELLS ONLY ONE MODEL THE TWOSEAT ESPRIT TURBO BUILT IN HETHEL ENGLAND IN OCTOBER LOTUS SLASHED THE PRICE OF THE 1993 MODEL BY 20000 TO 67345 IN ORDER TO BOOST SALES THE COMPANY SAID AT THE TIME THAT SPORTS CAR ENTHUSIASTS AREN'T WILLING TO SPEND 80000 TO 100000 ON AN EXOTIC SPORTS CAR THE COMPETITIVE PRICING PRESSURES COMBINED WITH REDUCTIONS IN PRODUCTION COSTS LED TO THE PRICE CUT A COMPANY SPOKESMAN SAID LOTUS USED TO SELL ANOTHER TWOSEATER THE ELAN BUT IT ONLY SURVIVED ONE MODEL YEAR BEFORE THE COMPANY CEASED PRODUCTION THE COMPANY SOLD 527 ELANS WHICH HAD A BASE PRICE OF 39090 GM BLAMED ELAN'S DEMISE ON POOR TIMING CITING THE GULF WAR THE RECESSION AND THE LUXURY TAX ON CARS COSTING 30000 OR MORE 9302230135 930223 ECONOMY MOST FIRMS FAIL TO WARN WORKERS OF PLANT CLOSINGS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE A 1988 LAW ENACTED TO PROTECT WORKERS MOST EMPLOYERS WHO CLOSED PLANTS FAILED TO PROVIDE THE REQUIRED 60 DAYS' NOTICE TO WORKERS BEFORE THE SHUTDOWN THE GENERAL ACCOUNTING OFFICE CONCLUDES IN A REPORT DUE OUT TODAY THE GAO SAYS IN A STUDY OF 1990 SHUTDOWNS THAT 54 OF THE EMPLOYERS DIDN'T PROPERLY NOTIFY WORKERS BEFORE THEY CLOSED PLANTS AND ABOUT THE SAME AMOUNT DIDN'T INFORM THE STATE DISLOCATEDWORKER UNIT AS REQUIRED IN ADDITION 29 OF THOSE WHO DID PROVIDE NOTICE FAILED TO GIVE THE REQUIRED TWOMONTH WARNING THE REPORT SAYS THE GAO NOTING THAT NO FEDERAL AGENCY HAS OVERSIGHT OVER THE LAW RECOMMENDED THAT CONGRESS CONSIDER GRANTING THE LABOR DEPARTMENT AUTHORITY TO ENFORCE THE LAW CONGRESS PASSED THE WORKER RETRAINING AND NOTIFICATION ACT FIVE YEARS AGO TO HELP WORKERS FIND OTHER JOBS WHEN THEY ARE ABOUT TO BE DISMISSED UNDER THE LAW EMPLOYERS WITH 100 OR MORE WORKERS MUST FILE A NOTICE IF THE CLOSING AFFECTS 50 OR MORE OF THOSE EMPLOYEES IN THE CASE OF A LAYOFF NOTICE IS REQUIRED FOR ANY FURLOUGH OF 50 OR MORE WORKERS IF THEY MAKE UP ONETHIRD OF THE WORK FORCE OR IF 500 WORKERS ARE LAID OFF BUT THE MESSAGE HASN'T GOTTEN THROUGH TO CORPORATE AMERICA THE GAO STUDIED 806 CLOSINGS IN 11 STATES DURING 1990 ACCOUNTING FOR 55 OF THE PLANT CLOSINGS THAT YEAR ABOUT HALF WERE EXEMPTED FROM THE NOTIFICATION REQUIREMENT BECAUSE THEY DIDN'T AFFECT THE REQUIRED NUMBER OF EMPLOYEES OR THE COMPANY WAS TOO SMALL SEN HOWARD METZENBAUM WHOSE SENATE LABOR SUBCOMMITTEE HOLDS A HEARING THIS MORNING ON THE ACT SAID THE LABOR DEPARTMENT SHOULD BE GIVEN ENFORCEMENT AUTHORITY TO TAKE ON COMPANIES THAT FAIL TO COMPLY THE ACT IS GOOD AND IT'S A MAJOR STEP IN THE RIGHT DIRECTION THE OHIO DEMOCRAT SAID IN AN INTERVIEW BUT IT NEEDS A BETTER ENFORCEMENT MECHANISM STILL THE GAO REPORT APPEARS TO SHOW THAT THE LAW DOESN'T GO FAR ENOUGH MR METZENBAUM SAID FOR EXAMPLE OF THE 650 LAYOFFS THAT HIT 50 OR MORE WORKERS AT A PLANT WITH 100 EMPLOYEES ABOUT TWOTHIRDS OF THE FACILITIES WERE EXEMPT MOSTLY BECAUSE THEY DIDN'T HAVE ONETHIRD OF THEIR WORKERS AT ONE LOCATION PERHAPS IN OUR DESIRE TO GET THE LAW PASSED WE WEREN'T TOUGH ENOUGH AND PROVIDED TOO MANY EXEMPTIONS MR METZENBAUM SAID ADDING HE PLANS TO REVISIT THE QUESTION GREG LEROY RESEARCH DIRECTOR OF THE MIDWEST CENTER FOR LABOR RESEARCH AGREED WITH THAT ASSESSMENT COMPANIES HAVE BECOME SLICKER AND SLICKER IN AVOIDING THE ACT'S REQUIREMENTS HE SAID WE NEED STRONG REMEDIES FOR VIOLATIONS AND WE NEED TO ELIMINATE ALL ESCAPE ROUTES DESPITE THE SPOTTY COMPLIANCE WORKERS AND ORGANIZATIONS HAVE BEEN LOATH TO BRING SUITS AGAINST COMPANIES FILING ONLY 66 SUCH ACTIONS SINCE 1988 IF SUCCESSFUL WORKERS CAN WIN AS MUCH AS 60 DAYS' BACK PAY AND ATTORNEYS' FEES FOR THE FACILITIES THAT DID COMPLY THE GAO REPORTS THE LAW HAS BEEN INEXPENSIVE FOR EMPLOYERS AND CREATED OPPORTUNITIES FOR WORKERS ABOUT 47 OF THE EMPLOYERS WHO GAVE REQUISITE NOTICE REPORTED THAT WORKERS FOUND JOBS MORE QUICKLY THAN THEY WOULD HAVE OTHERWISE THE AGENCY SAID ON THE OTHER HAND 29 OF THE EMPLOYERS SURVEYED BY THE GAO REPORTED THAT AFTER GIVING NOTICE THEY EXPERIENCED PROBLEMS SUCH AS LOWER WORKER PRODUCTIVITY 9302230134 930223 CREDIT RATINGS DU PONT DEBT FACES POSSIBLE DOWNGRADE IN REVIEW AT MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PUT DU PONT CO'S 88 BILLION OF LONGTERM DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE CITING CONCERN OVER A SIMULTANEOUS INCREASE IN THE CHEMICAL GIANT'S DEBT LEVELS AND A LAG IN ITS CASH FLOW THE RATING COMPANY CALLED THAT SITUATION A TREND OF SEVERAL YEARS' DURATION THAT WORSENED SIGNIFICANTLY IN 1992 THE PRIME1 RATING ON DU PONT'S COMMERCIAL PAPER IS CONFIRMED MOODY'S SAID AND ISN'T UNDER REVIEW THE REVIEW OF THE LONGTERM DEBT IS FOCUSING ON THE CAUSES OF THE SHARP INCREASE IN DEBT LEVELS WHICH DU PONT EXPERIENCED IN 1992 DESPITE MODERATE YEARTOYEAR IMPROVEMENT IN OPERATING PERFORMANCE MOODY'S SAID THE RATING CONCERN SAID IT IS EVALUATING THE ABILITY OF THE WILMINGTON DEL COMPANY'S TWO BUSINESS GROUPS CHEMICAL AND SPECIALTIES AND ENERGY TO GENERATE CASH IN EXCESS OF REINVESTMENT NEEDS IN SUFFICIENT QUANTITY TO ACHIEVE MEANINGFUL DEBT RETIREMENT OVER BOTH SHORT AND LONGER TERMS A DU PONT SPOKESMAN SAID THE COMPANY WAS DISAPPOINTED BUT NOT SURPRISED WITH MOODY'S DECISION TO PUT THE ISSUES UNDER REVIEW AND SAID THE COMPANY WILL WORK WITH THEM ON THE REVIEW 9302230133 930223 LETTERS TO THE EDITOR COSTS FOR DISMANTLING NUCLEAR POWER PLANTS I WOULD LIKE TO CLARIFY A MISUNDERSTANDING IN YOUR JAN 25 PAGEONE ARTICLE CLOSING COSTS NUCLEAR UTILITIES FACE IMMENSE EXPENSES IN DISMANTLING PLANTS IN 1991 I COEDITED A SPECIAL ISSUE OF THE ENERGY JOURNAL ON NUCLEAR REACTOR DECOMMISSIONING THERE IS NO RECENT STANFORD UNIVERSITY STUDY AS YOU WROTE LET ME EXPLAIN HOW I ARRIVED AT A CURRENT VALUE OF 33 BILLION FOR DECOMMISSIONING DECOMMISSIONING EQUALS DECONTAMINATION REMOVING RADIOACTIVE MATERIAL AND DISMANTLING REMOVING NONRADIOACTIVE MATERIAL THE NUCLEAR REGULATORY COMMISSION'S ESTIMATE OF 135 MILLION 1986 DOLLARS IS ONLY FOR DECONTAMINATION LET'S UPDATE THIS TO 150 MILLION IN TODAY'S DOLLARS LET'S ESTIMATE DISMANTLING AT ANOTHER 150 MILLION OR 300 MILLION TO DECOMMISSION EACH REACTOR WITH 110 REACTORS THIS IS A MINIMUM NUMBER BECAUSE IT DOES NOT INCLUDE REACTORS THAT WERE CLOSED EARLIER LIKE DRESDEN ONE AND INDIAN POINT ONE THE TOTAL IS 33 BILLION NEXT BECAUSE THIS WILL BE SPENT OVER THE NEXT 75 YEARS WE MUST CONSIDER THE TIME VALUE OF MONEY IE THE DISCOUNT RATE IF THE INTEREST RATE ON NUCLEAR DECOMMISSIONING TRUST FUNDS IS RESTRICTED TO TAX QUALIFYING INVESTMENTS IT WILL BE ABOUT EQUAL TO THE INFLATION RATE ON DECOMMISSIONING EXPENSES THEREFORE THE APPROPRIATE REAL DISCOUNT RATE IS ZERO OR CLOSE TO ZERO SO THE CURRENT VALUE IS 33 BILLION THIS IS THE AMOUNT IN REAL TERMS THAT MUST BE SPENT OVER THE NEXT THREE GENERATIONS THIS IS FAR LESS THAN WHAT WAS SPENT IN TODAY'S DOLLARS ON BUILDING THESE PLANTS 9302230132 930223 BUSINESS WORLD OLDFASHIONED NEWTECH WINNER IN THE CALIFORNIA CRUCIBLE BY TIM W FERGUSON CALIFORNIA HAD ITS OWN ECONOMIC SUMMIT LAST WEEK AND THIS ONE DIDN'T FREEZE OUT OPPOSING VIEWS WITH A POPULATION NEARING 32 MILLION THE STATE MAY BE GETTING EVER MORE CROWDED BUT THERE'S ALWAYS ROOM FOR ARGUMENT THIS FRACTIOUS CLIMATE IS PARTICULARLY ROUGH ON BUSINESSES YET SOME THRIVE ONE MENTIONED AT THE CONFERENCE IS THE REMARKABLE KINGSTON TECHNOLOGY CORP IN ORANGE COUNTY KINGSTON IS THE WORLD'S LEADING INDEPENDENT UPGRADER OF COMPUTER CAPABILITY AND ONE OF THE US'S GREAT HIGHTECH SMALLBUSINESS SUCCESS STORIES IN 1992 THE PRIVATELY HELD COMPANY'S FIFTH YEAR OF OPERATION SALES WERE SAID TO EXCEED 250 MILLION IT SEEKS NEARLY TO DOUBLE VOLUME AGAIN THIS YEAR UNTIL IT FINISHED ATOP INC MAGAZINE'S GROWTHCOMPANY HONOR ROLL LAST YEAR FEW OUTSIDE THE TECHIE WORLD HAD HEARD OF KINGSTON THIS CORPORATE COMBUSTION IS PARTLY A PHENOMENON OF THE COMPUTER INDUSTRY BUT KINGSTON'S RAPID RISE IS ALSO ABOUT THE PEOPLE ONLY 185 OF THEM WHO WORK THERE THEY MIGHT BE SAID TO REPRESENT THE EMERGING PICTURE AND PROMISE OF CALIFORNIA THE TWO OWNERS WERE BORN IN TAIWAN A ROUGH SURVEY OF THE PAYROLL NOT LONG AGO FOUND A THIRD WERE OF SIMILAR CHINESE HERITAGE ANOTHER THIRD WERE FROM VIETNAM LITTLE SAIGON IS NEAR THE HEADQUARTERS A SIXTH FROM MEXICO AND ONLY THE REMAINING SIXTH WERE US NATIVES THE PEOPLE THAT STARTED OUT FIVE YEARS AGO RECALLS PRESIDENT JOHN TU SOME OF THEM SOME COMPANIES WOULD NOT TAKE EVEN FOR MINIMUM WAGE BUT WE FELT WHY NOT EVERYBODY IS CAPABLE IF GIVEN THE OPPORTUNITY AND TRUST THEY ARE RESPONSIBLE FOR WHAT THEY'RE DOING THESE PEOPLE TODAY ARE HIGHLEVEL SALESPEOPLE AND MARKETING PEOPLE I WAS SO AMAZED TO SEE THESE PEOPLE BLOSSOM THEY COME TO ME FROM TIME TO TIME AND SAY I NOW LIKE MYSELF I KNOW I CAN GO OUT ANYWHERE AND MAKE IT' IT'S HOW YOU TREAT THEM THAT BEGINS TO EXPLAIN WHY REMAINING ENTHUSIASTS ABOUT CALIFORNIA SEE IN KINGSTON PROOF THAT POLYGLOT IS A PLUS THIS IMMIGRANT BUSINESS HAS BUILT ITSELF ON PRINCIPLES OF RELIABILITY SQUARE DEALING MODESTY AND PRUDENCE IT HAS NO USE FOR PAPER CREDENTIALS FANCY TITLES OR HIGHTORQUE FINANCE IN SHORT IT IS THE CLASSIC AMERICAN SHOP OF A BYGONE ERA WHEN NOSTALGIA HAS IT THE COUNTRY WAS A MORE GENUINE PLACE YET THE OLD VIRTUES ARE BEING VINDICATED IN A PLACE WHERE GOOD MORNING IS SAID IN FOUR LANGUAGES MR TU ARRIVED IN THE US ABOUT 20 YEARS AGO WITH AN ELECTRICALENGINEERING DEGREE BUT SPENT YEARS DEVELOPING COMMERCIAL PROPERTIES IT WAS 1982 BEFORE HE PARTNERED WITH DAVID SUN IN A COMPUTER PRODUCTS FIRM AFTER IT WAS BOUGHT BY AST RESEARCH THE PAIR WENT BACK TO THE GARAGE FLOOR TO START A COMPANY THAT WOULD LINK THE EXISTING STOCK OF COMPUTER HARDWARE WITH THE MYRIAD NEW APPLICATIONS THAT REQUIRED MORE ADVANCED PARTS THIS HAS PROVED JUST THE TICKET FOR THE TIMES SYSTEMS UPGRADES ARE NOW REQUIRED OF MILLIONS OF OLDER COMPUTERS PLUS MANY OF THOSE BEING SOLD NEW AT BARGAIN PRICES OF 1000 OR SO IN ORDER TO UTILIZE POPULAR GRAPHICS AND NETWORKING OPTIONS INNOVATION HAS OUTPACED BOTH THE TAX CODE WITH ITS FIVEYEAR DEPRECIATION SCHEDULE FOR COMPUTER EQUIPMENT AND THE ABILITY OF INDIVIDUALS TO BUY WHOLE NEW BOXES EVERY YEAR OR TWO KINGSTON IS THE STOPGAP MOREOVER DISTRIBUTORS FOR BIG COMPUTER MAKERS FIND IT QUICKER AND MORE PROFITABLE TO ASK KINGSTON WHICH REVERSEENGINEERS PRODUCTS FOR THOSE LINES TO SUPPLY THE ADAPTATIONS THEIR CUSTOMERS WANT RATHER THAN TO WAIT ON A FACTORY PART IN THIS CHAOTIC COMPETITION MESSRS TU AND SUN SAW A NEED NOT ONLY TO BE NIMBLE BUT TO BE NICE THEY BUILT UP THE CONFIDENCE OF SUPPLIERS BY PREPAYING INVOICES AND ALWAYS TAKING FULL DELIVERIES EVEN WHEN THE MARKET CHANGED AND THEY WEREN'T NEEDED ON THE OTHER END THEY FILLED ORDERS FOR DISTRIBUTORS AROUND THE WORLD ON THE STRENGTH OF A PHONE CALL THE HANDSHAKE PRINCIPLE EXTENDS TO THE VENDORS THAT SUPPLY KINGSTON WITH COMPONENTS THESE INCLUDE SOME OF THE BIGGEST PLAYERS IN THE BUSINESS SAMSUNG MOTOROLA TOSHIBA HITACHI MR TU SAYS HE ABSOLUTELY TRIES TO AVOID DEALING THROUGH LAWYERS THE SAME APPROACH EXTENDS TO KINGSTON'S MOST CRITICAL SUPPLIERS THE LOCAL JOB SHOPS THAT ACTUALLY MAKE THE PRODUCTS THAT KINGSTON DESIGNS TESTS SELLS AND SERVICES THEIR PRODUCTION LINES ARE GEARED TO SATISFY THE JUST IN TIME NEEDS OF KINGSTON AND ITS CUSTOMERS THE ARRANGEMENT MR TU SAYS SPARES KINGSTON FROM CARRYING ABOUT 50 ASSEMBLY POSITIONS TENDING TO BUSINESS RELATIONS MAY BE REWARDING BUT MR TU SAYS HE'S FOUND IT'S NOT THE INDUSTRY STANDARD HE RECEIVES MANY CALLS FROM JOB SEEKERS AT OTHER COMPANIES WHO ASPIRE TO INTRODUCE KINGSTON TO THE JOYS OF LEVERAGING A POWERFUL ORDER BOOK AND CASH FLOW BY SQUEEZING FIVE PENNIES MORE FROM PRICES AND DELAYING PAYMENTS FOR 15 OR 30 DAYS IN ORDER TO INVEST THE CASH I ABSOLUTELY HATE IT MR TU SAYS OF OPERATING THAT WAY THESE VENDORS ARE THE SAME AS YOU AND ME THEY NEED TO MAKE THEIR REASONABLE PROFIT TO BE ABLE TO SURVIVE IF THEY'VE DONE A GOOD JOB FOR YOU THEY DESERVE IT IF WE HAVE THE CASH PAY IT KINGSTON WON'T BORROW EITHER MORE THAN 8 MILLION IN CASH WAS PLUNKED DOWN FOR THE TWO BUILDINGS HOUSING IT AND A SISTER COMPANY NEWGEN WHICH MAKES LASER PRINTERS MR TU MAINTAINS THAT INCURRING DEBT IN SUCH A VOLATILE FIELD WOULD LEAVE HIM INSECURE THAT HE COULD IN A DOWNTURN FEED THE FAMILY BY THAT HE MEANS BE ABLE TO KEEP HIS EMPLOYEES AT PREMIUM PAY AND BENEFITS AS ON THE OUTSIDE MESSRS TU AND SUN BELIEVE THAT INHOUSE GENEROSITY BEGETS DEDICATION PERHAPS AS A RESULT MR TU HAS NONE OF THE STANDARD COMPLAINTS ABOUT DOING BUSINESS IN CALIFORNIA HE CAN'T RECALL ANY WORKERS' COMPENSATION CLAIMS AGAINST THE COMPANY AND LAWSUITS ARE A NONISSUE ALTHOUGH HE AND HIS PARTNER MUST NOW BE MULTIMILLIONAIRES HE DOESN'T EVEN BEEF ABOUT HIGH TAXES WHICH HE SAYS HE'S GLAD TO PAY FOR THE OPPORTUNITIES AFFORDED MR TU DID RESENT PRESIDENT CLINTON'S IMPLICATION LAST WEEK THAT SUCCESSFUL PEOPLE HAD DODGED THEIR DUE KINGSTON HAS NO PLANS TO USE AN INVESTMENT TAX CREDIT OR OTHER BREAK IT IS ONLY FOCUSED ON CREATING AND SELLING PRODUCTS SUCH A PHILOSOPHY MAY NOT SERVE EVERY BUSINESS AS WELL AND CALIFORNIA'S CLIMATE IS SURELY MORE INHOSPITABLE TO A COMPANY NOT PEDDLING HIGHVALUE OUTPUT WITH A CLOSELY KNIT IF MULTICULTURAL WORK FORCE BUT KINGSTON EVEN IF EXCEPTIONAL DOES SUGGEST THAT ALL IS NOT LOST IN THE STATE OR IN THE US'S ABILITY TO MINGLE OLD AND NEW 9302230131 930223 PEPPERAND SALT BEHIND SHOPPERS WHO STOP TO WRITE CHECKS A SHIRKAHOLIC CHUM 9302230130 930223 TECHNOLOGY & MEDICINE BORLAND DELAYS WINDOWS LINE FOR ITS DBASE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC CONFIRMING ANALYSTS' SUSPICIONS SAID IT FACED FRESH PROBLEMS IN DELIVERING THE FIRST WINDOWS VERSION OF ITS DBASE DATABASE PROGRAM AND THAT IT WOULDN'T SHIP THE PRODUCT UNTIL LATE THIS YEAR OR EARLY NEXT YEAR BORLAND WHICH IS THE TOP SUPPLIER OF DATABASE SOFTWARE FOR PERSONAL COMPUTERS HAD HOPED TO SHIP ITS FIRST WINDOWS VERSION OF DBASE IN JUNE BUT ROB DICKERSON VICE PRESIDENT OF PRODUCT MANAGEMENT SAID BORLAND DECIDED TO REVAMP THE PRODUCT TO ARRIVE AT A GREATER LEVEL OF SHARED CORE TECHNOLOGY WITH THE COMPANY'S PARADOX DATABASE FAMILY BORLAND WHICH DEVELOPED PARADOX ON ITS OWN BUT PURCHASED THE DBASE LINE IN 1991 IS LOCKED IN AN INTENSE BATTLE WITH MICROSOFT CORP THE BIGGEST SUPPLIER OF PC SOFTWARE FOR DATABASE SALES ANALYSTS CONSIDER BORLAND'S FORTHCOMING DBASE FOR WINDOWS PROGRAM TO BE A CRUCIAL PIECE IN ITS COMPETITIVE ARSENAL THE DELAY IS VERY DISAPPOINTING SAID RICHARD SHERLUND AN ANALYST AT GOLDMAN SACHS & CO BASICALLY IT MEANS BORLAND WILL BE A FULL YEAR BEHIND MICROSOFT WHICH JUST RELEASED A WINDOWS VERSION OF ITS FOXPRO DATABASE WHICH IS LARGELY COMPATIBLE WITH BORLAND'S DBASE MR DICKERSON CONCEDED THAT BORLAND WILL SMART FOR A WHILE BECAUSE OF THE DELAY BUT WE'LL BE MORE COMPETITIVE IN THE LONG RUN HE SAID BORLAND IS BUOYED BY THE RECENT RELEASE OF ITS FIRST WINDOWS VERSION OF PARADOX WHICH IS SELLING FAR BETTER THAN EXPECTED PARTLY BECAUSE OF AN AGGRESSIVE PROMOTIONAL PRICE WINDOWS IS A PROGRAM THAT ENHANCES DOS THE SOFTWARE THAT CONTROLS THE BASIC FUNCTIONS OF A PC BY ALLOWING USERS TO CONTROL THE COMPUTER BY SELECTING FROM ONSCREEN MENUS AND PROMPTS RATHER THAN MEMORIZING COMMANDS SINCE BUYING DBASE BORLAND HAS RELEASED NEW DOS VERSIONS BUT THE WINDOWS VERSION IS SEEN AS CRUCIAL TO THE CONTINUED VITALITY OF THE PRODUCT LINE SINCE PC USERS ARE RAPIDLY SHIFTING TO WINDOWS PROGRAMS GENERALLY ADAM GREEN A DATABASE CONSULTANT IN LEXINGTON MASS SAID BORLAND'S DOS VERSIONS OF DBASE SHOULD ENABLE THE COMPANY TO RETAIN MOST OF ITS CUSTOMERS HE SAID BORLAND ALSO IS HELPED BY THE LACKLUSTER CRITICAL APPRAISAL GIVEN MICROSOFT'S FOXPRO FOR WINDOWS WHICH MR GREEN DESCRIBED AS GOOD BUT NOT AN EXCITING PRODUCT HOWEVER MR GREEN ADDED THAT THE LONGER BORLAND DOESN'T HAVE A WINDOWS VERSION THE MORE THEY WILL MISS OUT ON NEW BUSINESS FROM CUSTOMERS ATTRACTED TO WINDOWS APPLICATIONS THE DELAY HE SAID ALSO GIVES AN OPENING TO OTHERS INTENT ON INTRODUCING WINDOWS PROGRAMS THAT ARE COMPATIBLE WITH DBASE 9302230129 930223 US RESERVE ASSETS INCREASED 639 MILLION IN THE LATEST MONTH WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 639 MILLION IN JANUARY TO 7196 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S RISE COMPARED WITH A 908 MILLION RISE IN RESERVE ASSETS IN DECEMBER TO 7132 BILLION THE DEPARTMENT SAID US HOLDINGS OF FOREIGN CURRENCIES INCREASED 277 MILLION IN JANUARY TO 4028 BILLION WHILE ITS GOLD RESERVES FELL 1 MILLION TO 1106 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 43 MILLION TO 855 BILLION AND ITS RESERVE POSITION AT THE IMF INCREASED 320 MILLION TO 1208 BILLION THE WASHINGTONBASED IMF SUPERVISES A SUPPLY OF MONEY SUPPORTED BY SUBSCRIPTIONS FROM MEMBER NATIONS FOR THE PURPOSE OF STABILIZING INTERNATIONAL EXCHANGE AND PROMOTING ORDERLY AND BALANCED TRADE MEMBER NATIONS MAY OBTAIN FOREIGN CURRENCY WHEN NEEDED MAKING IT POSSIBLE TO CORRECT TEMPORARY MALADJUSTMENTS IN THEIR BALANCE OF PAYMENTS WITHOUT CURRENCY DEPRECIATION 9302230128 930223 MARKETING & MEDIA JUDITH A VALENTE REPORTER FOR JOURNAL WINS NATIONAL AWARD NEW YORK JUDITH A VALENTE A REPORTER IN THE WALL STREET JOURNAL'S CHICAGO BUREAU WAS NAMED WINNER OF THE NATIONAL JOURNALISM WRITING AWARD FOR A FRONT PAGE ARTICLE ABOUT A FATHER AND HIS SON WHO WAS DIAGNOSED WITH AIDS THE HONOR SUPPORTED BY A GRANT FROM NIXON NEWSPAPERS INC PERU IND INCLUDES A 1000 AWARD THE AWARDS PROGRAM IS ADMINISTERED BY BALL STATE UNIVERSITY MUNCIE IND MS VALENTE'S ARTICLE PREVIOUSLY WON A FIRST PLACE AWARD FOR GENERAL FEATURE WRITING FROM THE AMERICAN ASSOCIATION OF SUNDAY AND FEATURE EDITORS SHE JOINED THE WALL STREET STREET JOURNAL IN 1987 9302230127 930223 WHO'S NEWS CONTINENTAL BANK CORP CONTINENTAL BANK CORP CHICAGO THIS BANK HOLDING COMPANY ELECTED THOMAS GILDEHAUS AND MILES L MARSH DIRECTORS INCREASING THE BOARD TO 12 MEMBERS MR GILDEHAUS 52 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHICAGOBASED UNR INDUSTRIES INC A DIVERSIFIED METALS MANUFACTURER MR MARSH 45 IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ST LOUISBASED PET INC A FOODS COMPANY 9302230126 930223 LEISURE & ARTS RETURN TO TRADITION THE MEDICINE MAN'S RENAISSANCE BY MARGOT COHEN SIBERUT INDONESIA SIX FAT PIGS ARE NOT GOING ANYWHERE HOOVES LASHED TIGHTLY THEY SCREAM AND SHUDDER EYES BULGING AS IF THEY SEE WHAT'S IN STORE NEARBY DRUMS QUICKEN SUMMONING THE FIRST VICTIM A SWIFT THUMB PLUNGES INTO THE LEFT EYE THEN COMES THE DAGGER STRAIGHT THROUGH THE NECK BLOOD HURRIES INTO A BLACK BOWL A TAWNY FIGURE IN FEATHERED HEADDRESS AND BARK LOINCLOTH SQUATS OVER THE FALLEN BEAST BEARING A SACK OF LEAVES AND FLOWERS HE REMOVES ONE SPRIG AND DIPS IT IN THE BOWL LATER THE REDDENED SPRIG IS REPLANTED NEVER TO PERISH TRADITION IS LIFEBLOOD FOR THE PEOPLE OF SIBERUT THE LARGEST OF THE MENTAWAI ISLANDS CLUSTERED OFF THE WEST COAST OF SUMATRA AND THIS CEREMONY HELD SPECIAL SIGNIFICANCE FOR THE FIRST TIME IN A DECADE THE VILLAGERS OF SILAOINAN WELCOMED A NEW KEREI OR MEDICINE MAN TO THEIR MIDST NOT JUST ONE IN FACT BUT TWO MEN JOINED THE RANKS OF HONORED HEALER WIELDING AGEOLD KNOWLEDGE OF SIBERUT'S RARE FLORA THEY IN TURN WILL DRAW APPRENTICES FROM THE VILLAGE YOUTH NURTURING A NEW GENERATION FOR A WHILE IT LOOKED AS IF SIBERUT'S RICH TRADITIONS WOULD BE SACRIFICED TO MODERNITY IN 1954 THE GOVERNMENT ISSUED A SERIES OF EDICTS TO STAMP OUT THE ANIMIST BELIEFS KNOWN AS ARAT SABULUNGAN VILLAGERS WERE TOLD TO SELECT ONE OF THE FIVE FAITHS RECOGNIZED UNDER THE STATE IDEOLOGY PANCASILA GIVEN ISLAM'S PORK PROHIBITION AND THE OPEN ARMS OF CATHOLIC MISSIONARIES THE CHOICE WAS NOT TOO DIFFICULT RELIGION IT TURNED OUT WAS ONLY THE BEGINNING MEN WITH LONG HAIR FELL PREY TO POLICEMEN'S SHEARS WOMEN WERE TOLD TO DON BRASSIERES AND SARONGS INTRICATE BODY TATTOOS APPLIED AFTER PUBERTY TO RESURRECT AN ADULT FROM THE WORLD OF CHILDREN WERE FORBIDDEN THE MODERNIZATION PROCESS ACCELERATED 12 YEARS AGO WHEN THE GOVERNMENT BEGAN TRANSPLANTING PEOPLE FROM THE THICKLY FORESTED INTERIOR TO COASTAL AREAS WHERE IT WOULD BE EASIER TO PROVIDE MORE UNIFORM EDUCATION AND HEALTH FACILITIES VILLAGERS DULY CARRIED OUT OFFICIAL INSTRUCTIONS TO DESTROY THE MAKESHIFT FOREST CHURCHES AND SCHOOLS THEY HAD BUILT THEY LEFT BEHIND THEIR ROOMY WOODEN LONGHOUSES HUNG WITH THE SKULLS OF BATS PIGS COWS AND MONKEYS AND MOVED INTO SMALLER GOVERNMENTBUILT HOUSES ALL IN A ROW FOR HOME DECOR SCHOOLCHILDREN LEARNED TO TWIST CANDY WRAPPERS INTO FLOWERS AND STICK THEM IN SARDINECAN VASES YET THE GOVERNMENT HEALTH CLINICS NEVER QUITE MATERIALIZED IN THESE RESETTLEMENT AREAS WHICH NOW HOUSE MOST OF THE ISLAND'S 24000 PEOPLE CEMENT ROADS AND ELECTRICITY REMAINED ELECTIONYEAR PROMISES LOGGING COMPANIES WHICH TOOK PAINS TO PROVIDE AMENITIES ELSEWHERE IN INDONESIA FELT LITTLE PRESSURE TO HELP DEVELOP SIBERUT FOOD WAS SCARCE AS PIGS WERE SHUT OUT OF THE MIGRATION PLAN FOR FEAR THEY'D SNACK ON THE NEW GARDEN PLOTS AND LIFE GOT TOUGHER FOR THE MEDICINE MEN NOT ONLY WERE THEIR PRECIOUS PLANTS AND FLOWERS NOW A LONG TREK AWAY BUT PRESSURE GREW TO ABANDON THEIR CALLING I HAD TO WALK AT NIGHT AND DO EVERYTHING SECRETLY SAYS ISMAEL ONE VETERAN KEREI WHENEVER HE GOT CAUGHT HE SAYS HE WAS FORCED TO CAST OFF THE TOOLS OF THE TRADE PLANTS NESTLED IN A SMOOTH BOX FASHIONED FROM SAGO BARK AND TWISTED RATTAN EVEN SO DURING A MAJOR OUTBREAK OF MEASLES GOVERNMENT HEALTH WORKERS REFUTE VILLERS' AND MISSIONARIES' REPORTS OF AN EPIDEMIC ALTHOUGH THEY ACKNOWLEDGE A LACK OF DATA THE 50ODD MEDICINE MEN IN THE RESETTLEMENT AREA OF SALIGUMA FANNED OUT TO THE TRADITIONAL LONGHOUSES WHERE MANY FAMILIES HAD DRIFTED BACK TO TEND TO THEIR PIGS AND SAGO TREES THE KEREI IN OTHER RESETTLEMENT AREAS FOLLOWED SUIT THE INDONESIAN GOVERNMENT DECIDED AGAINST REPRISALS IN ORDER NOT TO RILE TOURISTS WHO FOUND THE KEREIS' COSTUMES AND INCANTATIONS DELIGHTFUL JAKARTA OFFICIALS ALSO HAD GROWN MORE SENSITIVE TO THE DESIRES OF INDIGENOUS COMMUNITIES THROUGHOUT THE COUNTRY LAST YEAR MORE THAN 1500 ADVENTUROUS FOREIGNERS TRAIPSED THROUGH SIBERUT DESPITE UNRELIABLE BOAT SERVICE THAT LEFT MANY MAROONED FOR DAYS IF NOT WEEKS MONEY ROLLED IN MOST OF IT INTO THE POCKETS OF TOUR OPERATORS IN WEST SUMATRA OF THE 20 LICENSED TOUR GUIDES IN SIBERUT ONLY ONE IS A NATIVE TODAY PROVINCIAL OFFICIALS EAGERLY BRANDISH PLANS TO PROMOTE SIBERUT'S TRADITIONAL ARTS AND CULTURE WHILE THE MEDICINE MEN ARE ENJOYING A RENAISSANCE TATTOOING HAS FADED IRREVOCABLY OFFICIALS CONTINUE TO MAKE THE ROUNDS OF SCHOOLCHILDREN AND VILLAGE CAPTAINS WARNING OF THE DANGERS OF INFECTION THE GOVERNMENT OF WEST SUMATRA SAYS THE TATTOO SHOULD BE PART OF THE PAST SAYS H HAWARI SIDDIK THE PROVINCE'S TOURISM CHIEF IN A PRIMITIVE SOCIETY THE TATTOO IS A SYMBOL OF STATUS BUT MODERN SOCIETY SAYS THE TATTOO IS A SYMBOL OF PRIMITIVISM THIS MAY BE NEWS TO THE DENIZENS OF NEW YORK'S TATTOO PARLORS WHERE A BORNEO MOTIF NOW CARRIES A CERTAIN CACHET BUT IN SIBERUT FEW SEEM EAGER TO REVIVE THE TRADITION I FEEL SOMETHING IS LACKING ADMITS AMAN SEKNEK A CLEARSKINNED 50YEAROLD SALIGUMA KEREI RESTING CROSSLEGGED AFTER A THUNDEROUS MONKEY DANCE THE OTHER TWO MEDICINE MEN POOHPOOH HIS WORRY WELL IT HURT ANYWAY SAYS AMAN BELIO SURVEYING THE DARKGREEN DOTS AND CROSSHATCHING CASCADING FROM CHEST TO FINGERTIPS BARNABAS ONE OF THE NEW KEREIS IN SILAOINAN SAYS HE COULDN'T CARE LESS ABOUT HIS TATTOOLESSNESS HE DID NOT HESITATE HOWEVER TO CAP THE FRIDAY NIGHT KEREI CEREMONY BY LEAPING ONTO HOT COALS TO PROVE HIS NEWLY WON POWERS THE NEXT MORNING WAITING FOR THE FINAL PIG TO BE CARVED AND SERVED TO THE CLAN HE WAS WEARILY LOOKING AHEAD TO THE TREK BACK TO SALIGUMA TO ATTEND CHURCH SERVICES FOR LOCALS IT TAKES TWO HOURS FOR TOURISTS AND REPORTERS IT'S MORE LIKE FOUR NOT COUNTING COFFEE BREAKS HE SAYS HE SEE NO CONFLICT BETWEEN HIS DUTIES AS KEREI WHICH OFTEN INVOLVE CHASING OFF EVIL SPIRITS AND HIS UNFLAGGING CHRISTIANITY IN HIS BLITHE MULTIPIETY BARNABAS IS A FITTING CORELIGIONIST OF FATHER OTTORINO MONACI AN ITALIAN PRIEST STATIONED IN SIBERUT SINCE 1980 MORE FLUENT IN THE MENTAWAI TONGUE THAN IN ENGLISH HE IS KNOWN TO OCCASIONALLY CONDUCT MASS WITH FEATHERS AND BEADS ADORNING HIS SALTANDPEPPER HAIR SUSPENDED ABOVE THE FRONT DOOR OF HIS CHURCH ARE A CANOE PADDLE A CARVED WOODEN SHIELD A KEREI'S SAGO BOX A MINIATURE BOAT AND A CARVED MONKEY THE PRIEST HAS NEVERTHELESS LAID DOWN A FEW RULES FOR THE MEDICINE MEN THEY SHOULDN'T USE MAGIC FORMULAS THEY SHOULDN'T TELL PATIENTS TO STOP BATHING OR TO STAY HOME FROM CHURCH MOST IMPORTANT THEY SHOULDN'T SAY THAT ILLNESSES WERE CAUSED BY OTHER PEOPLE THAT CREATES HATE AND BUILDS GRUDGES FATHER MONACI EXPLAINS THE EMBATTLED TEAM OF DOCTORS NURSES AND PARAMEDICS AT THE GOVERNMENT HEALTH CLINIC IN THE PORT TOWN OF MUARA SIBERUT AREN'T SO TOLERANT OF NATIVE WAYS WHEN CHILDREN GET DIARRHEA THEY BRING THEM TO THE KEREI AND THEY'RE GIVEN BARK OR I DON'T KNOW WHAT SAYS DR JONI SASTRA TRADITIONAL MEDICINE MAKES THE SITUATION WORSE YET THE TOURISTS LURED BY THE MEDICINE MEN HAVE PROVIDED SOME RELIEF FOR THE CLINIC'S PINCHED BUDGET IN ORDER TO RAISE ADDITIONAL FUNDS TO REACH REMOTE AREAS THE MEDICAL WORKERS POOLED THEIR OWN MONEY THIS YEAR FOR A SPEEDBOAT WHICH THEY RENT AT MARKET PRICES 50 AND UP IN THE VILLAGES EVERYONE PLEADS FOR DRUGS DO YOU HAVE ANY COUGH MEDICINE ASKS BARNABAS CLEARING HIS THROAT AFTER A LONG SESSION OF CHANTING AND CHAINSMOKING THE MEDICINE MAN ACCEPTS AN OFFER OF VITAMIN C ALL EYES TURN TO THIS NEW CEREMONY THE PLOP AND FIZZ OF THE ORANGE TABLET MS COHEN IS A JAKARTABASED JOURNALIST 9302230125 930223 FEDERAL GOVERNMENT POSTS BUDGET SURPLUS WASHINGTON THE FEDERAL GOVERNMENT RAN A BUDGET SURPLUS OF 2981 BILLION IN JANUARY COMPARED WITH AN UNREVISED DEFICIT OF 3895 BILLION IN DECEMBER THE TREASURY DEPARTMENT SAID MUCH OF THE BUDGET SURPLUS LAST MONTH RESULTED FROM A CALENDAR QUIRK THAT RESULTED IN JANUARY'S SOCIAL SECURITY PAYMENTS BEING DISBURSED IN DECEMBER IN ITS MONTHLY STATEMENT THE TREASURY SAID THE GOVERNMENT TOOK IN 11281 BILLION LAST MONTH COMPARED WITH 11376 BILLION IN DECEMBER THE GOVERNMENT SPENT 83 BILLION IN JANUARY COMPARED WITH 1527 BILLION THE PREVIOUS MONTH TREASURY SAID THE GOVERNMENT PAID 1806 BILLION IN INTEREST LAST MONTH ON THE FEDERAL DEBT IN ADDITION THE RESOLUTION TRUST CORP WHICH SELLS THE ASSETS OF FAILED THRIFTS SHOWED A SURPLUS LAST MONTH GENERATING 566 MILLION IN RECEIPTS THE DEFICIT THUS FAR IN FISCAL 1993 WHICH BEGAN OCT 1 TOTALED 9065 BILLION COMPARED WITH 9948 BILLION FOR THE FIRST FOUR MONTHS OF FISCAL 1992 9302230124 930223 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH JAMES F WATSON 55 YEARS OLD WAS NAMED PRESIDENT OF THE THERMO KING CORP UNIT OF THIS ELECTRICAL EQUIPMENT FINANCIAL SERVICES BROADCASTING AND POWER GENERATION EQUIPMENT CONCERN HE SUCCEEDS THOMAS P COSTELLO 61 WHO WAS RECENTLY NAMED A GROUP PRESIDENT OF THE CORPORATION MR WATSON HAD MOST RECENTLY SERVED AS VICE PRESIDENT OF THE NORTH AMERICAN DIVISION OF THERMO KING 9302230123 930223 FINANCING BUSINESS MEDIA VISION TECHNOLOGY INC MEDIA VISION TECHNOLOGY INC SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE COMPUTER PARTS COMPANY SAID THAT OF THE PROPOSED SHARES ABOUT HALF WILL BE OFFERED BY THE COMPANY AND ABOUT HALF WILL BE OFFERED BY SELLING SHAREHOLDERS THE OFFERING PRICE WILL BE BASED ON THE TRADING PRICE OF MEDIA VISION STOCK AT THE TIME OF THE OFFERING THE FREMONT CALIF COMPANY SAID PROCEEDS FROM THE SALE WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES THERE WERE 116 MILLION COMMON SHARES OUTSTANDING AS OF DEC 31 ACCORDING TO A SPOKESWOMAN IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MEDIA VISION CLOSED AT 2725 A SHARE DOWN 225 9302230122 930223 BOARD OF CONTRIBUTORS CLINTON'S PATH TO WIDER DEFICITS BY MARTIN FELDSTEIN AS SOMEONE WHO HAS BEEN URGING DEFICIT REDUCTION FOR MORE THAN A DECADE I WAS INITIALLY PLEASED BY PRESIDENT CLINTON'S SEEMING EMPHASIS ON CUTTING THE DEFICIT AND HIS CALL FOR TOUGH MEDICINE TO ACHIEVE THAT GOAL UNFORTUNATELY CAREFUL ANALYSIS OF HIS PLAN SHOWS THAT IT WOULD NOT SHRINK THE DEFICIT'S SHARE OF NATIONAL INCOME THE PROJECTED INCREASES IN SPENDING ON SOCIAL PROGRAMS WOULD FAR OUTWEIGH THE PROPOSED CHANGES THAT REDUCE SPENDING OR RAISE REVENUE LEAVING THE NATION WITH A WIDER DEFICIT FOUR YEARS FROM NOW EVEN UNDER THE OPTIMISTIC CALCULATIONS OF THE CLINTON TEAM THERE IS VIRTUALLY NO REDUCTION OF THE RELATIVE DEFICIT OVER THE NEXT FOUR YEARS IF EVERY TAX AND SPENDING CHANGE CALLED FOR IN THE PLAN OCCURS AND THE ECONOMY RETURNS TO FULL EMPLOYMENT IN 1997 THE CLINTON CALCULATIONS PLACE THE BUDGET DEFICIT AT 27 OF GROSS DOMESTIC PRODUCT BACK IN 1990 WHEN THE ECONOMY WAS LAST AT FULL EMPLOYMENT THE DEFICIT NET OF DEPOSIT INSURANCE OUTLAYS WAS 29 OF GDP WITH A DEFICIT OF 27 OF GDP THE GOVERNMENT WOULD BE BORROWING ABOUT HALF OF THE NET SAVINGS GENERATED BY HOUSEHOLDS BUSINESSES AND STATE AND LOCAL GOVERNMENTS THE REMAINING SAVINGS WOULD BE TOO LOW TO FINANCE ENOUGH INVESTMENT TO KEEP UP WITH THE GROWTH OF THE LABOR FORCE AND THE RATIO OF THE NATIONAL DEBT TO GDP NOW MORE THAN 50 WOULD STILL BE RISING THOSE GLOOMY FIGURES ARE ACTUALLY FAR TOO OPTIMISTIC BECAUSE THERE IS NO POSSIBILITY THAT THE CLINTON PLAN WILL PRODUCE THE DEFICIT REDUCTION THAT IT PROJECTS CONSIDER FIRST THE TAX INCREASE THAT IS THE CENTERPIECE OF THE DEFICIT REDUCTION PLAN FOR 1994 THE PLAN PROJECTS DEFICIT REDUCTION OF 39 BILLION 31 BILLION OF WHICH IS SUPPOSED TO COME FROM RAISING THE PERSONAL INCOME TAX RATES ON INDIVIDUALS WITH TAXABLE INCOMES EXCEEDING 140000 AND FROM ADDING A 29 MEDICARE PAYROLL TAX TO ALL INCOMES EXCEEDING 135000 THE CLINTON REVENUE ESTIMATES ARE BASED ON THE FALLACIOUS ASSUMPTION THAT TAXPAYERS WILL NOT CHANGE THEIR BEHAVIOR IN RESPONSE TO A 37 JUMP IN THEIR MARGINAL TAX RATES FROM 31 TODAY TO THE 425 THAT RESULTS FROM THE NEW 36 RATE PLUS THE 10 SURCHARGE AND THE 29 MEDICARE TAX IN REALITY TAXPAYERS WILL FIND WAYS OF CONVERTING TAXABLE INCOME INTO NONTAXABLE INCOME TAX SHELTERS AND DEFERRED COMPENSATION WILL BECOME MORE ATTRACTIVE AND SOME INDIVIDUALS ESPECIALLY IN TWOEARNER HOUSEHOLDS WILL OPT TO WORK LESS IF THE HIGHER MARGINAL TAX RATE CAUSES THESE TAXPAYERS TO REDUCE THEIR TAXABLE INCOMES BY 10 VIRTUALLY ALL OF THE PRESIDENT'S PROJECTED REVENUE GAIN WOULD DISAPPEAR FOR A TAXPAYER WITH 400000 OF TAXABLE INCOME THE RATE HIKE WOULD PRODUCE 26085 OF ADDITIONAL REVENUE IF THERE WERE NO BEHAVIORAL RESPONSE BUT IF TAXABLE INCOME IS REDUCED TO 360000 THE ADDITIONAL REVENUE WOULD BE ONLY 7935 THE EFFECTS ON TREASURY REVENUE ARE EVEN MORE STARTLING FOR THOSE WITH SLIGHTLY LOWER INCOMES AT 180000 OF TAXABLE INCOME THE MARGINAL TAX RATE WOULD RISE BY 25 EVEN A VERY SMALL 5 REDUCTION IN TAXABLE INCOME TO 171000 FOR SUCH INDIVIDUALS WOULD MEAN A NET REDUCTION IN TOTAL TAXES PAID ALTHOUGH THE TREASURY WOULD COLLECT 2594 OF ADDITIONAL TAXES ON THE INCOME UP TO 171000 IT WOULD LOSE 2790 BY NOT TAXING THE REMAINING 9000 AT THE CURRENT 31 RATE THE NET EFFECT WOULD BE A REVENUE LOSS OF 196 INSTEAD OF THE PROJECTED REVENUE GAIN OF 3305 WITH A 10 REDUCTION IN TAXABLE INCOME TO 162000 THE HIGHER RATES WOULD ACTUALLY COST THE TREASURY 3697 FOR A COUPLE WITH 180000 OF CURRENT TAXABLE INCOME ACCORDING TO THE CLINTON PLAN DOCUMENT HALF OF ALL TAXPAYERS WITH INCOMES OVER 140000 HAVE INCOMES UNDER 180000 THUS EVEN A 5 REDUCTION IN TAXABLE INCOMES IN RESPONSE TO THE 25 MARGINAL TAX RATE INCREASE WOULD REDUCE THE TAXES PAID BY THE MAJORITY OF THOSE WHO FACED HIGHER RATES IT'S ALL PAIN FOR THEM WITH NO REVENUE GAIN TO THE TREASURY AND THEREFORE NO DEFICIT REDUCTION THE SECOND IMPLAUSIBLE FEATURE OF THE PLAN IS THE ASSUMPTION THAT CONGRESS WILL CUT REAL DEFENSE OUTLAYS BY A MASSIVE 25 OVER THE NEXT FOUR YEARS DEFENSE OUTLAYS IN THE CURRENT FISCAL YEAR WILL BE 294 BILLION OR 48 OF GDP DOWN SHARPLY FROM THE 59 OF GDP IN 1989 BEFORE THE FALL OF THE BERLIN WALL AND THE COLLAPSE OF THE SOVIET UNION MAINTAINING THE PRESENT REAL LEVEL WOULD REQUIRE 328 BILLION OF DEFENSE OUTLAYS IN 1997 EVEN IF INFLATION AVERAGES THE VERY MODEST 28 A YEAR PROJECTED BY THE CONGRESSIONAL BUDGET OFFICE THE CLINTON PLAN'S PROJECTED 249 BILLION IN 1997 DEFENSE OUTLAYS IS THUS 25 BELOW THE AMOUNT NEEDED TO MAINTAIN TODAY'S REAL SPENDING LEVEL AND 33 BELOW THE AMOUNT NEEDED TO MAINTAIN OUR CURRENT 48 OF GDP SPENDING ON DEFENSE MR CLINTON WOULD REDUCE DEFENSE SPENDING TO 33 OF GDP LOWER THAN IN ANY YEAR SINCE 1940 AND LESS THAN A THIRD OF ITS SHARE IN 1959 WHEN JOHN F KENNEDY WARNED THAT WE WERE SPENDING TOO LITTLE ON DEFENSE ALTHOUGH THE CLINTON DEFENSE OUTLAYS IN 1997 ARE PROJECTED AT 79 BILLION LESS THAN THE 328 BILLION NEEDED TO MAINTAIN THE CURRENT REAL LEVEL THE CLINTON DOCUMENTS CLAIM HIS PROPOSED POLICY CHANGES CUT 1997 DEFENSE OUTLAYS BY ONLY 37 BILLION THIS BUDGETARY SLEIGHT OF HAND IS ACHIEVED BY REDUCING THE BASELINE FROM WHICH THE CLINTON DEFENSE CUTS ARE CALCULATED INSTEAD OF TAKING AS A STANDARD THE LEVEL OF 1997 SPENDING NEEDED TO MAINTAIN TODAY'S REAL DEFENSE OUTLAYS THE CLINTON BUDGET ASSUMES THAT THE 22 BILLION OF CUTS AGREED TO IN THE OMNIBUS BUDGET RECONCILIATION ACT AND THE ADDITIONAL 20 BILLION OF CUTS SUBSEQUENTLY PROPOSED BY PRESIDENT BUSH HAVE ALREADY BEEN MADE SUBTRACTING THESE TWO CUTS FROM THE 328 BILLION GIVES PRESIDENT CLINTON A 1997 STARTING POINT OF 286 BILLION HIS ADDITIONAL PROJECTED CUTS OF 37 BILLION RESULT IN PROJECTED DEFENSE OUTLAYS OF 249 BILLION BUT PLAYING GAMES WITH THE BASELINE DOESN'T CHANGE THE RESULTS AT A TIME OF INCREASING MILITARY UNCERTAINTY AND CONFLICT AROUND THE WORLD AND A NEW PROLIFERATION OF NUCLEAR ARMS AND BALLISTIC MISSILES THERE IS GOOD REASON TO DOUBT CONGRESS'S WILLINGNESS TO ACCEPT SUCH DRASTIC CUTS THE THIRD PIECE OF IMPLAUSIBLE BUDGETING IS THE PROJECTED DOMESTIC SPENDING CUTS BY PRESIDENT CLINTON'S RECKONING NONDEFENSE SPENDING IN 1997 WOULD BE CUT BY 61 BILLION BEFORE TAKING INTO ACCOUNT HIS PLANS FOR NEW SPENDING OF 55 BILLION ON INVESTMENTS AND INCENTIVES A LABEL THAT IS DIVORCED OF ALL MEANING BY EXTENDING IT TO EVERY TYPE OF SOCIAL PROGRAM AND INCOME REDISTRIBUTION JUST HOW LIKELY IS THE 61 BILLION OF PROJECTED SPENDING CUTS ABOUT HALF THE SPENDING CUTS ARE REALLY REVENUE INCREASES RAISING THE TAX ON SOCIAL SECURITY BENEFITS FOR RETIREES WITH MORE THAN 32000 OF INCOME WOULD RAISE 7 BILLION IN 1997 A WIDE RANGE OF USER FEES WOULD PRODUCE 9 BILLION HIGHER MEDICARE PREMIUMS WOULD YIELD 4 BILLION IF CONGRESS GOES ALONG A VARIETY OF CHANGES IN HOSPITAL REIMBURSEMENT RULES FOR MEDICARE AND MEDICAID WOULD SHIFT 6 BILLION OF COSTS FROM THE GOVERNMENT TO PRIVATE INSURERS AND THEREFORE EVENTUALLY TO WAGE EARNERS ADD THE 4 BILLION THAT THE GOVERNMENT HOPES TO SAVE BY BETTING THAT FINANCIAL MARKETS ARE WRONG AND SHORTENING THE MATURITY OF THE DEBT AND YOU HAVE A TOTAL OF 30 BILLION OF 1997 SPENDING CUTS ACHIEVED WITHOUT A SINGLE DOLLAR'S WORTH OF BENEFIT CUTS OR ACTIVITY REDUCTION THE CLINTON TEAM'S EXTENSIVE SEARCH FOR PROGRAMS THAT DON'T WORK OR ARE NO LONGER NEEDED CAME UP WITH LESS THAN 3 BILLION OUT OF THE 1427 TRILLION IN NONDEFENSE OUTLAYS IN 1997025 MUCH OF THE REMAINING 28 BILLION OF PROJECTED SPENDING CUTS ARE THE KINDS OF WISHFULTHINKING NUMBERS THAT TRADITIONALLY HELP BUDGETEERS PROJECT NARROWER DEFICITS BUT DON'T ACTUALLY PRODUCE ANY SAVINGS IN THE LANGUAGE OF THE CLINTON PLAN THERE ARE 1997 SAVINGS OF 33 BILLION FROM STREAMLINING GOVERNMENT 6 BILLION FROM UNSPECIFIED ADMINISTRATIVE EFFICIENCIES AND MORE THAN A BILLION DOLLARS FROM BETTER MANAGEMENT OF PARTICULAR PROGRAMS IT IS UNFORTUNATE THAT PRESIDENT CLINTON DID NOT TAKE THE ADVICE OF HIS OWN BUDGET OFFICIALS LEON PANETTA AND ALICE RIVLIN WHEN THEY CALLED FOR A MUCH BROADER FRAMEWORK FOR DEFICIT REDUCTION THE PRESIDENT'S DECISION TO AVOID REAL CUTS IN NONDEFENSE SPENDING AND TO ADOPT A COUNTERPRODUCTIVE STRUCTURE OF HIGHER TAX RATES LEAVES US WITH NO CREDIBLE REDUCTION IN THE DEFICIT HIS PLANS TO INCREASE NONDEFENSE SPENDING LABELED INVESTMENTS AND INCENTIVES BY 160 BILLION OVER THE NEXT FOUR YEARS AND BY 55 BILLION IN 1997 ALONE VIRTUALLY ENSURES THAT THE CLINTON PLAN WOULD PRODUCE A SIZABLE INCREASE IN THE SHARE OF NATIONAL INCOME ABSORBED BY THE BUDGET DEFICIT WHAT MAKES THIS PARTICULARLY DISTURBING IS THAT THE PRESIDENT EITHER DOES NOT UNDERSTAND THIS OR IS NOT LEVELING WITH THE AMERICAN PEOPLE MR FELDSTEIN FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD 9302230121 930223 INTERNATIONAL GERMANS ARE TAKING THE HELM AT AIRBUS DAIMLER UNIT'S POWER GROWS WITH BOEING FOKKER DEALS BY BRIAN COLEMAN AND CRAIG FORMAN STAFF REPORTERS OF THE WALL STREET JOURNAL MUNICH GERMANY JUERGEN SCHREMPP CHAIRMAN OF DEUTSCHE AEROSPACE AG WAS VACATIONING ON A SOUTH AFRICAN BEACH WHEN HE FOUND HIS BUSINESS DEALINGS ON THE WORLD'S FRONT PAGES FOR MONTHS HE HAD LOBBIED HIS PARTNERS IN EUROPE'S AIRBUS INDUSTRIE CONSORTIUM TO BEGIN TALKS ON BUILDING A SUPERJUMBO AIRCRAFT WITH ARCHRIVAL BOEING CO OF THE US NOW ON THE EVE OF THE TALKS MR SCHREMPP FOUND HIMSELF READING REPORTS THAT HE AND AIRBUS MEMBER BRITISH AEROSPACE PLC WERE CONSORTING WITH THE ENEMY BEHIND AIRBUS'S BACK IN FACT SAYS MR SCHREMPP HE SERVED SIMPLY AS THE AIRBUS POINTMAN IN THE BOEING PROJECT I WAS THE INITIATOR HE SAYS WITH MOVES LIKE THAT MR SCHREMPP IS MAKING DEUTSCHE AEROSPACE ALSO KNOWN AS DASA THE MOST INFLUENTIAL PLAYER IN EUROPE'S AIRCRAFT INDUSTRY HE ALSO IS SETTING HIMSELF UP TO TAKE OVER AS HEAD OF DASA'S PARENT GIANT DAIMLERBENZ AG IT'S A STUNNING RISE FOR A COMPANY THAT DIDN'T EXIST FOUR YEARS AGO AND FOR A 48YEAROLD EXECUTIVE WHOSE PREVIOUS EXPERIENCE WAS WITH DAIMLER'S TRUCK BUSINESS WHEN DAIMLERBENZ DECIDED TO PUT ITS DEEP POCKETS BEHIND A MAJOR EXPANSION IN AEROSPACE IT KNIT TOGETHER VIA ACQUISITION AND MERGER OPERATIONS MAKING EVERYTHING FROM RADAR SYSTEMS AND DIESEL ENGINES TO SATELLITES IT GROUPED THEM ALL UNDER DASA AND BROUGHT IN MR SCHREMPP TO RUN IT NOW WITH THE TRANSACTION SIGNED THIS MONTH FOR DASA TO ACQUIRE 51 OF DUTCH REGIONAL AIRCRAFT MAKER FOKKER NV THE GERMAN COMPANY HAS QUICKLY BECOME THE LARGEST AIRCRAFT MANUFACTURER IN EUROPE WE HAVE COME A LONG WAY SAYS MR SCHREMPP PROUDLY DISPLAYING THE COMPANY'S ARTICLES OF INCORPORATION FRAMED ON HIS OFFICE WALL BUT IN ITS RAPID RISE DASA ALSO IS MAKING ENEMIES AS IT INCREASINGLY CALLS THE SHOTS WITHIN AIRBUS NOT ONLY DID MR SCHREMPP LEAD THE CONSORTIUM PARTNERS INTO THE BOEING TALKS BUT DASA ALSO WON THE RIGHT TO PRODUCE AIRBUS'S TWO NEWEST PLANES THE A321 AND A319 IN HAMBURG THIS MARKS THE FIRST TIME AN AIRBUS WILL BE BUILT OUTSIDE FRANCE AND IS SOMETHING THE FRENCH PARTNERS ALLEGEDLY FOUGHT AGAINST THE AIRBUS PARTNERS CONTINUE TO DISPLAY OFFICIAL BONHOMIE BUT THEY ARE KEEPING A WARY EYE ON DASA A FORMER AIRBUS DIRECTOR SAYS THE GERMANS WHO WITH THE FRENCH GROUP AEROSPATIALE EFFECTIVELY CONTROL AIRBUS ARE BECOMING MORE AGGRESSIVE AIRBUS OFFICIALS DECLINED TO BE INTERVIEWED FOR THIS ARTICLE MR SCHREMPP SAYS DASA IS LOOKING TO THE LONG TERM BUT WITH THE AIRCRAFT BUSINESS IN A WORLDWIDE DOWNSPIN GRABBING MORE OF A SHRINKING PIE MEANS THE GERMANS RISK TAKING MORE AND MORE FROM THEIR PARTNERS WHILE ACKNOWLEDGING A DEBT TO THE FRENCH MR SCHREMPP SEES HIS COMPANY PLAYING A LARGER ROLE AND HE DOESN'T HIDE HIS AMBITION I WANT TO BE AN EQUAL AMONG THE TOP COMPANIES MR SCHREMPP SAYS I DON'T ACCEPT A JUNIOR ROLE FOR DASA BUT HE ALSO ASSURES HIS AIRBUS PARTNERS THAT HE HAS NO INTENTION OF BREAKING UP THE EUROPEAN ALLIANCE WHICH DESPITE THE WORLD'S SKEPTICISM AND GRIPES ABOUT GOVERNMENT SUBSIDIES HAS EMERGED FROM TWO DECADES OF INTERNAL BICKERING AND SLUGGISHNESS AS A POTENT RIVAL TO BOEING THE BOEING SUPERJUMBO VENTURE ISN'T A TROJAN HORSE DESIGNED TO SOW DISSENT AMONG THE AIRBUS PARTNERS HE SAYS I NEED MY EUROPEAN PARTNERS THERE IS HARDLY ANY AREA WHERE WE CAN DO WITHOUT OUR PARTNERS WHEN IT COMES TO LARGE PASSENGER AIRCRAFT OUR ROLE IS WITHIN THE AIRBUS CONSORTIUM PERHAPS THAT ROLE WILL BE EXTENDED BUT IT WILL ALWAYS BE WITH THE FOUR PARTNERS SO WHY PURSUE THE STUDY WITH BOEING HIS LOGIC IS SIMPLE ONLY TOGETHER COULD THE WORLD'S AIRPLANEMAKERS AFFORD THE BILLIONS OF DOLLARS SUCH A PROJECT WOULD REQUIRE STILL SUCH BIG THINKING HAS PROMPTED REPORTS ESPECIALLY IN THE FRENCH MEDIA OF RISING TENSION BETWEEN AIRBUS'S PARTNERS WHO FOR YEARS WERE LED BY AEROSPATIALE OF FRANCE THOSE REPORTS ARE DISMISSED NOT ONLY BY MR SCHREMPP BUT BY AEROSPATIALE CHAIRMAN LOUIS GALLOIS AEROSPATIALE AND DASA EACH HAVE 379 STAKES IN THE CONSORTIUM BRITISH AEROSPACE PLC HAS 20 AND SPAIN'S CONSTRUCCIONES AERONAUTICAS SA 42 WE WERE THE DOMINANT PARTNER IN THE PAST BUT YOU CAN'T BE THE DOMINANT PARTNER IN SUCH AN ORGANIZATION FOR A LONG TIME SAYS MR GALLOIS I HAVE NO INFERIORITY OR SUPERIORITY COMPLEX IN RESPECT TO DEUTSCHE AEROSPACE THE FRENCH EXECUTIVE SAYS BLUNTLY WHY EVERYONE IS SUDDENLY PAYING ATTENTION TO DASA THEY ARE POWERFUL THEY HAVE THE AMBITION THEY HAVE THE MONEY STILL DASA CAN'T DO IT ALONE IN THE WAKE OF GERMAN DEFEAT IN WORLD WAR II THE COUNTRY'S AEROSPACE INDUSTRY WAS SEVERELY CUT BACK NOW IF GERMAN AEROSPACE IS TO CATCH UP AND KEEP PACE WITH THE REST OF THE WORLD BOTH MILITARILY AND FOR CIVILIAN PROGRAMS IT MUST TURN TO PARTNERSHIPS DASA'S LIST OF PARTNERS SHOWS THAT IT IS TAKING THIS APPROACH SERIOUSLY THE AGREEMENT WITH FOKKER IF IT RECEIVES REGULATORY APPROVAL WILL PROPEL DASA INTO THE TOP SPOT IN EUROPE FOR REGIONAL JETLINERS FOKKER ALREADY PRODUCES A 100SEAT JET AND PLANS TO BUILD BOTH A SMALLER AND LARGER VERSION IN ABOUT THREE YEARS DASA PLANS TO BRING AEROSPATIALE AND ALENIA SPA MAKERS OF THE HIGHLY SUCCESSFUL ATR TURBOPROP PLANES INTO THE REGIONAL AIRCRAFT ALLIANCE IN 1991 THE COMPANY'S ENGINE UNIT MTU FORGED A STRATEGIC ALLIANCE WITH UNITED TECHNOLOGY CORP'S PRATT & WHITNEY THE DEAL GIVES MTU A 25 ROLE IN NEW PROGRAMS UNDERTAKEN BY THE US AEROSPACE GIANT WITH ALENIA DASSAULT SA AND AEROSPATIALE THE COMPANY IN EARLY 1992 FOUNDED EUROHERMESPACE SA THE COMPANY OVERSEEING DEVELOPMENT OF A EUROPEAN SPACE SHUTTLE WITH AEROSPATIALE DASA IN 1991 CREATED EUROCOPTER THE COMPANY 40 HELD BY DASA IS DEVELOPING EUROPE'S FIRST MILITARY ATTACK HELICOPTER AND PRODUCES A WIDE RANGE OF CIVILIAN HELICOPTERS WITH BRITISH AEROSPACE ALENIA AND AIRBUS PARTNER CASA THE GERMAN COMPANY IS DEVELOPING THE PROTOTYPES FOR THE MUCHDEBATED EUROPEAN FIGHTER AIRCRAFT HOWEVER DASA'S MOST POWERFUL ALLIES ARE AT HOME THE GERMAN GOVERNMENT AND DAIMLERBENZ IT WAS THE BONN GOVERNMENT THAT APPROACHED THE COUNTRY'S LARGEST COMPANY WITH THE IDEA OF FORMING AN AEROSPACE GIANT DAIMLERBENZ WAS RELUCTANT AT FIRST BUT THE TWO FORGED A DEAL THAT WOULD BRING DAIMLER THE GOVERNMENT'S SPRAWLING AEROSPACE ACTIVITIES AIRBUS AND MESSERSCHMITTBOELKOWBLOHM GMBH DEUTSCHE AEROSPACE IS BEING USED AS A PREFERRED VEHICLE OF THE GERMAN GOVERNMENT WHICH WANTED A LARGER ROLE IN AEROSPACE SAYS ANALYST PETE DEIGHTON OF SMITH NEW COURT SECURITIES LTD MR SCHREMPP HAS RUTHLESSLY REORGANIZED HE MOVED COMPANY HEADQUARTERS FROM DOWNTOWN MUNICH TO A LOWERCOST SITE ADJACENT TO AN OLD MESSERSCHMITT FACTORY HE PERSONALLY TOLD TOP EXECUTIVES AT SEVERAL UNITS TO PACK THEIR BAGS FACED WITH THE RECESSION IN THE AVIATION INDUSTRY HE HAS ORDERED 7500 JOB CUTS OR ABOUT 13 OF THE GROUP'S EMPLOYMENT HE LOVES HIS CONFRONTATION SAYS MICHAEL GORRIZ ONE OF MR SCHREMPP'S ASSISTANTS THOUGH FRIENDS SAY MR SCHREMPP WOULD BE HAPPY FINISHING HIS CAREER WHERE HE IS OTHERS SAY HE HAS HIS SIGHTS SET ON BIGGER TARGETS MR SCHREMPP PARRIES SUGGESTIONS THAT HE MIGHT ASPIRE TO RUNNING DAIMLER WHERE HE'S ALREADY ON THE BOARD BUT IT IS OBVIOUS THAT A SUCCESS IN AEROSPACE WOULD BE A BIG BOOST 9302230120 930223 NOTABLE & QUOTABLE DAVID SEGAL IN THE JAN/FEB ISSUE OF THE WASHINGTON MONTHLY PROPOSING LEGISLATION THAT IS BITTER MEDICINE FOR THE COUNTRY USUALLY TAKES SOME COURAGE BUT CHANGING LEGISLATION THAT IS STUPID MEDICINE FOR THE COUNTRY OFTEN TAKES MORE A CASE IN POINT IS THE DELANEY CLAUSE IN THE 1960 FOOD ADDITIVE AMENDMENT TO THE FOOD AND DRUG ACT WHICH STIPULATES THAT ANY ADDITIVE FOUND TO CAUSE CANCER IN LABORATORY ANIMALS CANNOT BE USED IN FOODS IT SOUNDS SANE ENOUGH BUT IN THE 34 YEARS SINCE DELANEY WAS PASSED ADVANCES IN SCIENCE HAVE MADE THE CLAUSE EMBARRASSINGLY OUTDATED ANIMALS AND HUMANS WE'VE SINCE LEARNED METABOLIZE DIFFERENTLY SO WHAT CAUSES CANCER IN A RAT DOESN'T NECESSARILY CAUSE CANCER IN HUMANS AND METHODS FOR MEASURING LEVELS OF CARCINOGENS HAVE SO IMPROVED THAT TAKING THE DELANEY CLAUSE AT ITS WORD WOULD MEAN BANNING ESSENTIAL MINERALS AS WELL AS VITAMINS LIKE A AND D 9302230119 930223 POLITICS & POLICY CLINTON ECONOMIC STIMULUS' WOULD AID PROJECTS DEMOCRATS HAVE LONG FAVORED BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC STIMULUS IS AS MUCH AN EFFORT TO INCREASE SPENDING ON PROGRAMS THAT DEMOCRATS HAVE LONG FAVORED AS IT IS A WAY TO STIMULATE AN ECONOMY THAT IS ALREADY PERKING UP ON ITS OWN THE FIRST AND SURPRISINGLY CONTROVERSIAL INSTALLMENT OF THE CLINTON PLAN IS TO GET CONGRESS TO PROMPTLY INCREASE GOVERNMENT SPENDING AUTHORITY BY ABOUT 163 BILLION ON EVERYTHING FROM INFRASTRUCTURE TO IMMUNIZATION ABOUT HALF THE MONEY WOULD BE PAID OUT IN THE NEXT SIX MONTHS MOST OF THE REST WOULD BE SPENT IN FISCAL 1994 WHICH BEGINS OCT 1 THE ADMINISTRATION SAYS THE STIMULUS PLAN WAS CAREFULLY CRAFTED TO BE FASTACTING AND JOBCREATING AS WELL AS A DOWN PAYMENT ON THE ADMINISTRATION'S LONGRUN INVESTMENT PROGRAM LAURA TYSON WHO HEADS MR CLINTON'S COUNCIL OF ECONOMIC ADVISERS SAID YESTERDAY THAT THE STIMULUS WILL GENERATE ON THE ORDER OF 500000 ADDITIONAL JOBS ABOVE AND BEYOND WHAT THE RECOVERY ITSELF WILL GENERATE OVER THE NEXT TWO YEARS THAT'S THE MOTIVATION BUT ON CLOSE INSPECTION THE SPENDING PACKAGE APPEARS TO HAVE BEEN TAILORED AS MUCH TO SATISFY POLITICAL CONSTITUENCIES AS TO QUICKEN THE ECONOMY WHICH AFTER ALL IS DEMONSTRATING SUBSTANTIAL MOMENTUM ON ITS OWN EVEN THOUGH IT STILL ISN'T PRODUCING MANY NEW JOBS SOME ECONOMISTS ARE NOW ARGUING THAT THE OVERALL CLINTON PACKAGE MIGHT LEAD TO FEWER JOBS UNLESS THE ADMINISTRATION CHANGES ITS MIND AND DELAYS INCOMETAX AND CORPORATETAX INCREASES THAT IT WANTS TO MAKE RETROACTIVE TO THE BEGINNING OF 1993 BECAUSE THE TAX INCREASES TAKE EFFECT THIS YEAR DRI/MCGRAWHILL A LEXINGTON MASS FORECASTING FIRM FIGURES THE PLAN WOULDN'T ADD ANY JOBS THIS YEAR AND WOULD RESULT IN 250000 FEWER JOBS NEXT YEAR THAN WOULD OTHERWISE BE THE CASE ADMINISTRATION ECONOMISTS DISAGREE BUT TREASURY SECRETARY LLOYD BENTSEN SAID OVER THE WEEKEND THAT SUCH A DELAY IS UNDER CONSIDERATION THE STIMULUS COMES IN TWO PHASES FIRST THE SPENDING BILL THAT THE WHITE HOUSE HOPES TO RUSH THROUGH CONGRESS AND SECOND AN INVESTMENT TAX CREDIT TO BE EMBEDDED IN A LATER TAX BILL THAT WOULD REWARD BUSINESS EQUIPMENT PURCHASES MADE SINCE DECEMBER 1992 THE SPENDING PART IS A HODGEPODGE IT INCLUDES ABOUT 4 BILLION TO EXTEND JOBLESS BENEFITS TO LONGTERM UNEMPLOYED THAT WOULD OTHERWISE RUN OUT 1 BILLION FOR SUMMER YOUTH JOBS AND NEARLY 3 BILLION IN HIGHWAY SPENDING THE REST CONSISTS OF DOLLOPS OF MONEY FOR FAVORED PROGRAMS SUCH AS REPAIRING VETERANS' HOSPITALS FEEDING POOR WOMEN AND CHILDREN IMMUNIZING ONE MILLION CHILDREN THIS SUMMER BEEFING UP ENFORCEMENT OF THE AMERICANS WITH DISABILITIES ACT SPEEDING PROCESSING OF SOCIAL SECURITY DISABILITY CLAIMS WEATHERIZING POOR PEOPLE'S HOMES HIRING FOOD AND POULTRY INSPECTORS PAVING ROADS ON INDIAN RESERVATIONS AND FUNDING INFORMATION HIGHWAYS TO TIE TOGETHER COMPUTERS IN SCHOOLS LIBRARIES HOSPITALS AND OTHER FACILITIES WE HAVE CHOSEN A SERIES OF PUBLIC INVESTMENT ITEMS IN INFRASTRUCTURE IN YOUTH EMPLOYMENT IN HEAD START IN ENERGY CONSERVATION A NUMBER OF AREAS WE WANT TO MOVE ON ANYWAY MS TYSON SAID YESTERDAY ON CAPITOL HILL WE BELIEVE BY MOVING ON THEM EARLY WE CAN HELP GENERATE SOME ADDITIONAL JOBS FOR THE PRIVATE SECTOR SOME ECONOMISTS WHO HAVE BEEN URGING THE GOVERNMENT TO STEP UP SPENDING TO IMPROVE THE ECONOMY HAVEN'T ANY OBJECTION SPENDING MONEY IS SPENDING MONEY IS SPENDING MONEY NO MATTER WHAT ON SAYS NOBEL PRIZEWINNING ECONOMIST JAMES TOBIN OF YALE BUT SOME POLITICIANS ARE UNEASY ABOUT VOTING TO INCREASE SUCH FAMILIAR GOVERNMENT SPENDING PROGRAMS NOW AND WAITING TILL LATER TO VOTE ON THE MUCH BIGGER TAX INCREASES AND SPENDING CUTS THAT MR CLINTON HAS PROPOSED BY THE ADMINISTRATION'S RECKONING THE CLINTON PACKAGE WOULD SHRINK THE FEDERAL BUDGET DEFICIT SIGNIFICANTLY OVER THE NEXT FOUR YEARS BUT IT WOULD WIDEN THE DEFICIT IN THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 BY ABOUT 13 BILLION WITH THE YEAR HALF OVER ECONOMISTS SAY THAT AMOUNTS TO AN ANNUAL RATE OF ABOUT 25 BILLION NOT MUCH IN A 6 TRILLION ECONOMY THE ADMINISTRATION SAYS THAT'S SUBSTANTIAL ENOUGH TO PROVIDE REAL IMPETUS TO THE RECOVERY BUT SMALL ENOUGH TO AVOID JARRING THE FINANCIAL MARKETS OR TRIGGERING INFLATION PAUL SAMUELSON THE NOBEL LAUREATE AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY SAYS THE STIMULUS IS JUST ABOUT THE RIGHT SIZE PROF TOBIN OF YALE SAYS IT'S PROBABLY TOO SMALL M KATHRYN EICKHOFF A NEW YORK ECONOMIC CONSULTANT SAYS THAT STIMULUS IS UNNECESSARY BECAUSE THE ECONOMY IS ACCELERATING ON ITS OWN AND FED CHAIRMAN ALAN GREENSPAN SAID LAST WEEK THAT THE CLINTON STIMULUS ISN'T BIG ENOUGH TO ARGUE ABOUT YOU CERTAINLY CAN'T ARGUE AT LEAST I CAN'T THAT ITS SOMETHING WHICH WOULD HAVE A SIGNIFICANT IMPACT ON THE ECONOMY HE SAID IF IT WERE A BIG NUMBER IT WOULD REALLY CONCERN US BUT ROGER BRINNER THE TOP ECONOMIST AT DRI/MCGRAW HILL CHALLENGES THE ADMINISTRATION VIEW THESE ARE CHANGES THAT AFFECT SOPHISTICATED PEOPLE HE SAID YESTERDAY THEY WOULD CHANGE THEIR SPENDING AND HIRING ACTIVITY YOU'VE GOT FISCAL RESTRAINT BEGINNING TODAY AS A RESULT MR BRINNER SEES NO STIMULUS AT ALL FROM THE CLINTON PLAN THIS YEAR AND EXPECTS IT TO SHAVE 03 OF A PERCENTAGE POINT OFF NEXT YEAR'S GROWTH UNLESS THE FED COMES THROUGH WITH LOWER INTEREST RATES BUT CHAIRMAN DAN ROSTENKOWSKI OF THE HOUSE WAYS AND MEANS COMMITTEE IS SKEPTICAL ABOUT DELAYING THE INCOMETAX INCREASES IF THAT MEANS AS TREASURY SECRETARY BENTSEN HAS SAID IT WOULD SPEEDING UP OTHER TAX INCREASES TO MEET MR CLINTON'S 1997 DEFICIT GOAL THAT IS NOT AN IDEA THAT I'VE NURTURED THE ILLINOIS DEMOCRAT SAID YESTERDAY LUCINDA HARPER CONTRIBUTED TO THIS ARTICLE STIMULUS OR SPENDING 9302230118 930223 THE PORK IN THE PRESIDENT'S PLAN BY SCOTT A HODGE MOST AMERICANS ASSUME THEIR GOVERNMENT DOES AT LEAST ONE THING WELL WASTE THEIR MONEY AND THEY ARE RIGHT DESPITE REPEATED CLAIMS OF CUTTING SPENDING TO THE BONE WASHINGTON'S GOVERNING CLASS HAS CREATED ONE DEFICIT AFTER ANOTHER WITH WASTEFUL GOVERNMENT PROGRAMS LAST WEEK HOWEVER PRESIDENT CLINTON TOLD THE NATION THAT THE PARTY IS OVER EVEN HIS BELOVED ARKANSAS HE SAID WOULD BE AFFECTED BY THE 150 SPECIFIC DEFICITREDUCTION MEASURES HE WAS PROPOSING TO CONGRESS THE REALITY HOWEVER IS DIFFERENT MUCH OF THE SOCALLED DEFICIT REDUCTION IS TO COME FROM REFINANCING GOVERNMENT DEBT STREAMLINING OPERATIONS INCREASING USER'S FEES AND ABOVE ALL RAISING TAXES FOR ALL HIS TALK OF AUSTERITY MR CLINTON MANAGED TO IDENTIFY JUST 11 PROGRAMS OUT OF A 15 TRILLION BUDGET THAT DON'T WORK OR ARE NO LONGER NEEDED MR CLINTON WOULD TERMINATE AMONG OTHER PROGRAMS THE RUSSIA/EURASIA RESEARCH AT THE STATE DEPARTMENT SAVING 29 MILLION THE TENNESSEE VALLEY AUTHORITY'S NATIONAL FERTILIZER DEVELOPMENT CENTER SAVING 188 MILLION AND NUCLEAR REACTOR RESEARCH AND DEVELOPMENT SAVING 820 MILLION BUT HE MISSED THE RIPEST TARGETS THE USELESS 100 MILLION APPALACHIAN REGIONAL COMMISSION A PET PROGRAM OF SEN ROBERT BYRD D WVA IS MERELY FROZEN AT 1993 LEVELS THE 120 MILLIONAYEAR NATIONAL HELIUM RESERVES STARTED IN 1929 TO PROVIDE HELIUM FOR BLIMPS IS LEFT INTACT SO IS THE 400 MILLION DAIRY SUBSIDY PROGRAM DURING THE EARLY 1980S THIS PROGRAM FORCED DAIRY FARMERS TO SLAUGHTER 16 MILLION COWS TO LOWER MILK PRODUCTION ALSO UNTOUCHED ARE THE AGRICULTURE DEPARTMENT'S 11000 FIELD OFFICES LOCATED IN 94 OF THE COUNTIES IN AMERICA EVEN THOUGH ONLY 13 OF THEM ARE CONSIDERED AGRICULTURAL AND THE INTERSTATE COMMERCE COMMISSION LIVES ON ALTHOUGH IT IS NOW VIRTUALLY OBSOLETE WITH THE DEREGULATION OF TRUCKING THE ADMINISTRATION'S AIM WAS BETTER WHEN IT WENT AFTER A FEW WASTEFUL AGRICULTURAL SUBSIDIES MR CLINTON FOLLOWED UP ON HIS PLEDGE TO ELIMINATE THE 40YEAROLD HONEY SUBSIDY PROGRAM SAVING 32 MILLION OVER FOUR YEARS HE ALSO PROPOSED ELIMINATING THE AGRICULTURAL RESEARCH SERVICE'S EARMARKED GRANTS SAVING 54 MILLION THIS PROGRAM HAS FUNDED SUCH PROJECTS AS THE RICE RESEARCH CENTER IN STUTTGART ARK AND THE CENTER FOR ADVANCED WATER TECHNOLOGY IN SAVANNAH GA BUT ANYONE WHO WATCHES WASTE IN GOVERNMENT WILL FIND MANY PROGRAMS STILL THRIVING THAT OUGHT TO BE CUT AT THE LOW END OF THE SCALE THERE IS THE 33 MILLION ESSENTIAL AIR SERVICE SUBSIDY PROGRAM THAT PAYS COMMERCIAL AIRLINES TO FLY TO RESORTS SUCH AS THE HOMESTEAD IN HOT SPRINGS VA A VACATION SPOT FOR MEMBERS OF CONGRESS AT THE HIGH END THERE IS THE CONSERVATION RESERVE PROGRAM THAT PAYS FARMERS SOME 26 BILLION A YEAR NOT TO PLANT CROPS MOREOVER MR CLINTON HAS ADDED PORK OF HIS OWN PRODUCING 134 OF NEW SPENDING FOR EVERY DOLLAR CUT UNDER THE HEADINGS STIMULUS OPTIONS AND INVESTMENT PROPOSALS MR CLINTON OFFERS THE FOLLOWING MR CLINTON'S LONGTERM PROPOSALS ARE LITTLE BETTER TAXPAYERS WHO ARE INCLINED TO HEED MR CLINTON'S CALL TO SACRIFICE MAY WANT TO REMEMBER THAT SACRIFICE IS THE LAST THING THE GOVERNMENT IN WASHINGTON INTENDS TO DO WHEN IT COMES TO ITS FAVORITE PROJECTS AND PROGRAMS MR HODGE IS A FELLOW IN FEDERAL BUDGETARY AFFAIRS AT THE HERITAGE FOUNDATION IN WASHINGTON 9302230117 930223 YOUR MONEY MATTERS TAXES 1993 TIMELY TIPS FOR EASING THE APRIL 15 BLUES BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON'S PROPOSED TAX INCREASES STILL DOMINATE THE HEADLINES BUT TAXPAYERS HAVE AN EVEN MORE IMMEDIATE CONCERN WITH APRIL 15 LESS THAN TWO MONTHS AWAY IT'S TIME TO START WORRYING ABOUT FILLING OUT 1992 RETURNS WHILE THOSE RETURNS AREN'T AFFECTED BY THE TAXRATE INCREASES AND OTHER CHANGES THE PRESIDENT PROPOSED LAST WEEK MANY PEOPLE MAY BE SURPRISED WHEN THEY OR THEIR ACCOUNTANTS WORK THROUGH THE NUMBERS ALTHOUGH THERE WAS NO MAJOR NEW TAX LEGISLATION LAST YEAR THERE ARE SEVERAL NOTSOSUBTLE CHANGES AND COURT RULINGS THAT WILL AFFECT MANY TAXPAYERS SAYS G WILLIAM CLAPP SENIOR VICE PRESIDENT AT BESSEMER TRUST CO LARGE NUMBERS OF TAXPAYERS WILL RECEIVE A SMALLER REFUND THIS YEAR THAN LAST YEAR AND SOME EVEN MAY WIND UP OWING THE INTERNAL REVENUE SERVICE FOR THE FIRST TIME THAT'S BECAUSE THE BUSH ADMINISTRATION EARLY LAST YEAR IN AN EFFORT TO BOLSTER THE ECONOMY REDUCED WITHHOLDING FOR MANY WAGE EARNERS MERRILL LYNCH & CO ECONOMISTS ESTIMATE THAT TAXPAYERS WILL RECEIVE ABOUT 125 BILLION LESS IN REFUNDS THIS YEAR THAN THEY DID A YEAR AGO A DEVELOPMENT THAT MERRILL PREDICTS WILL CUT INTO SECONDQUARTER ECONOMIC GROWTH BUT SOME OTHER TAXPAYERS WILL FIND THEY WILL OWE THE IRS LESS THAN A YEAR AGO BECAUSE OF AUTOMATIC INFLATION ADJUSTMENTS FOR SUCH ITEMS AS TAXBRACKET LEVELS THE PERSONAL EXEMPTION THE PERSONAL EXEMPTION PHASEOUT LEVEL THE STANDARD DEDUCTION AND THE LIMIT ON ITEMIZED DEDUCTIONS FOR UPPERINCOME TAXPAYERS ASSUMING THEIR INCOME AND TAX STATUS FOR 1992 WERE ROUGHLY THE SAME AS IN 1991 SOME UPPERINCOME TAXPAYERS WILL SAVE AS MUCH AS 750 IN TAXES ACCORDING TO CALCULATIONS FOR THE WALL STREET JOURNAL BY PRICE WATERHOUSE ARTHUR ANDERSEN LEGAL KNOWLEDGE SYSTEMS INC AND GOLDSTEIN GOLUB KESSLER & CO WHATEVER THE CASE DON'T PROCRASTINATE TAX ADVISERS SAY HERE ARE SOME WAYS TO MAKE THE CHORE EASIER AND PERHAPS SAVE MONEY AS WELL THIS IS ONE OF THE MOST OBVIOUS YET MOST OVERLOOKED TIPS AND IT IS ESPECIALLY IMPORTANT FOR TAXPAYERS WHO USE PROFESSIONAL PREPARERS CLIENTS WHO COME TO US WITH ALL THEIR RECORDS NEATLY ORGANIZED CAN SAVE UP TO 40 TO 50 ON THEIR TAX PREPARATION FEES COMPARED WITH BADLY ORGANIZED TAXPAYERS SAYS STUART KESSLER OF GOLDSTEIN GOLUB KESSLER USE LAST YEAR'S RETURN AS A CHECKLIST TO MAKE SURE YOU HAVE REMEMBERED ALL SOURCES OF INCOME AND DEDUCTIONS IN CASE YOU ARE MISSING ANY CANCELED CHECKS AND RECEIPTS THAT MIGHT BE IMPORTANT IN CASE THE IRS RAISES QUESTIONS THERE STILL IS TIME TO CALL THE ORGANIZATION THAT ISSUED THEM AND ASK FOR COPIES CONTRIBUTE TO A KEOGH THERE IS STILL TIME FOR SOME TAXPAYERS TO TAKE STEPS TO TRIM THEIR 1992 TAX BILL MANY PEOPLE CAN CONTRIBUTE TO A SELFEMPLOYED RETIREMENT PLAN SUCH AS A KEOGH PLAN TAXPAYERS WHO SET UP A KEOGH PLAN BEFORE THE END OF 1992 DON'T HAVE TO CONTRIBUTE UNTIL APRIL 15 OR THE EXTENDED DUE DATE FOR THEIR 1992 RETURNS KEOGH PLANS ARE OPEN TO SELFEMPLOYED WORKERS OR TO WORKERS WHO RECEIVE INCOME FROM OUTSIDE SOURCES SUCH AS SERVING AS A DIRECTOR CONSULTING OR FREELANCE WRITING CHECK INTEREST AND DIVIDEND STATEMENTS THE FORMS USED BY BANKS BROKERAGE FIRMS MUTUAL FUNDS AND OTHERS TO REPORT INTEREST DIVIDEND PAYMENTS AND MORTGAGE INTEREST SOMETIMES CONTAIN ERRORS WARNS JEFFRY ARONSSON OF THE LAW FIRM ARONSSON & KERKER IN NEW YORK LEFT UNCORRECTED THESE MISTAKES CAN LEAD TO NEEDLESS HASSLES WITH THE IRS PAY ESPECIALLY CLOSE ATTENTION TO FORM 1098 USED BY MORTGAGE LENDERS TO SHOW HOW MUCH INTEREST A HOMEOWNER PAID MR ARONSSON SAYS BEWARE OF EXPIRED PROVISIONS SEVERAL TAXLAW CHANGES OCCURRED BECAUSE OF PROVISIONS THAT EXPIRED IN MID1992 ONE OF THE MOST IMPORTANT AFFECTED CHARITABLE GIFTS OF ART COLLECTIBLES AND OTHER TANGIBLE PROPERTY THAT INCREASED IN VALUE TAXPAYERS WHO DONATED VALUABLE ART WORKS TO MUSEUMS DURING THE FIRST HALF OF 1992 MAY DEDUCT THE FULL MARKET VALUE OF THE ART WITHOUT TRIGGERING PROVISIONS OF THE ALTERNATIVE MINIMUM TAX A MEASURE DESIGNED TO MAKE SURE EVERYONE PAYS A MINIMUM AMOUNT OF TAX BUT SINCE THAT PROVISION DIED THIS SPECIAL TREATMENT APPLIES ONLY TO GIFTS MADE BEFORE MID1992 ANOTHER EXPIRED PROVISION AFFECTED A DEDUCTION FOR HEALTH INSURANCE FOR SELFEMPLOYED PEOPLE TAXPAYERS WHO ARE SELFEMPLOYED OR OWN OVER 2 OF THE STOCK OF AN S CORPORATION CAN DEDUCT 25 OF THE AMOUNT PAID FOR MEDICAL INSURANCE FOR THEMSELVES AND THEIR FAMILIES PROVIDED THEY MEET CERTAIN REQUIREMENTS ACCORDING TO THE IRS BUT ONLY AMOUNTS PAID BEFORE JULY 1 CAN BE USED TO CALCULATE THE DEDUCTION SIMILARLY AN INCOME EXCLUSION FOR EMPLOYERPROVIDED EDUCATIONAL ASSISTANCE PLANS DIED AT MIDYEAR PRESIDENT CLINTON HAS PROPOSED REVIVING THESE PROVISIONS AND EXTENDING THE CHARITABLE GIFTS MEASURE TO INCLUDE DONATIONS OF STOCKS BONDS REAL ESTATE AND OTHER APPRECIATED PROPERTY BUT AS AN IRS SPOKESMAN PUTS IT YOU CAN'T FILE YOUR TAX RETURN BETTING THAT PROPOSED LEGISLATION WILL BE ENACTED CURRENT LAW PREVAILS WHAT CAN YOU DO IF CONGRESS APPROVES AND MAKES THESE CHANGES RETROACTIVE TO LAST YEAR FILE AN AMENDED RETURN FOR 1992 SAYS DANIEL CAINE PRESIDENT OF LEGAL KNOWLEDGE SYSTEMS MOST MARRIED COUPLES WILL BENEFIT BY FILING A JOINT RETURN BUT THERE ARE CASES WHERE IT MAY PAY FOR A MARRIED COUPLE TO FILE SEPARATE RETURNS FOR EXAMPLE SUPPOSE ONE SPOUSE HAS LARGE AMOUNTS OF DEDUCTIONS SUCH AS MEDICAL COSTS THAT SPOUSE MIGHT BE ABLE TO USE ALL THOSE DEDUCTIONS BY FILING SEPARATELY RATHER THAN JOINTLY BECAUSE IT WOULD BE EASIER TO MEET THE THRESHOLD TESTS MEDICAL EXPENSES ARE DEDUCTIBLE ONLY TO THE EXTENT THEY EXCEED 75 OF A TAXPAYER'S ADJUSTED GROSS INCOME JOB EXPENSES AND MOST OTHER MISCELLANEOUS DEDUCTIONS CAN BE CLAIMED ONLY TO THE EXTENT THEY EXCEED 2 OF ADJUSTED GROSS INCOME INTEREST EARNED ON US TREASURY SECURITIES IS FREE FROM ALL STATE AND LOCAL INCOME TAXES THIS RULE ALSO APPLIES IN EVERY STATE EXCEPT PENNSYLVANIA TO DIVIDENDS FROM MUTUAL FUNDS THAT OWN ONLY TREASURY SECURITIES SAYS CATHERINE HERON OF THE INVESTMENT COMPANY INSTITUTE SHE SAYS LEGISLATION IS LIKELY TO BE INTRODUCED IN PENNSYLVANIA SOON TO REMEDY THE SITUATION MANY STATES ALSO EXEMPT INCOME FROM SECURITIES OF CERTAIN FEDERAL GOVERNMENT AGENCIES BECAUSE RULES CAN VARY WIDELY FROM STATE TO STATE BE SURE TO CHECK WITH STATE OFFICIALS MANY AMERICANS WHO LOST THEIR JOBS LAST YEAR MAY DEDUCT THE COSTS OF SEARCHING FOR WORK ROUTINE JOBHUNTING EXPENSES SUCH AS RESUME PREPARATION PERSONNEL AGENCY FEES AND CARFARE TO AND FROM INTERVIEWS MAY BE DEDUCTIBLE THE LAW ALLOWS DEDUCTIONS EVEN IF THE WOULDBE WORKER DIDN'T FIND A NEW JOB REMEMBER THOUGH THAT YOU MUST BE LOOKING FOR A JOB IN YOUR SAME OCCUPATION NOT A DIFFERENT FIELD FOR EXAMPLE A JOURNALIST CAN DEDUCT COSTS OF LOOKING FOR ANOTHER JOURNALISM JOB BUT NOT A JOB AS A STOCKBROKER DEDUCTIONS AREN'T ALLOWED FOR SOMEONE LOOKING FOR WORK FOR THE FIRST TIME SUCH AS A RECENT COLLEGE GRADUATE ALSO THE IRS SAYS YOU CAN'T DEDUCT EXPENSES IF THERE IS A SUBSTANTIAL BREAK BETWEEN THE TIME YOUR PAST JOB AND YOUR LOOKING FOR A NEW ONE USE CAUTION ON HOME OFFICES THE SUPREME COURT RECENTLY HANDED DOWN A RULING THAT IS LIKELY TO ENCOURAGE THE IRS TO CHALLENGE MANY MORE PEOPLE WHO DEDUCT HOME OFFICE EXPENSES THE COURT REJECTED DEDUCTIONS CLAIMED BY AN ANESTHESIOLOGIST WHO USED A SPARE BEDROOM TO KEEP RECORDS AND TO TELEPHONE COLLEAGUES AND PATIENTS EVEN THOUGH THE HOSPITALS WHERE HE WORKED DID NOT PROVIDE HIM WITH AN OFFICE THE COURT RULED THE DOCTOR'S HOME OFFICE WAS NOT HIS PRINCIPAL PLACE OF BUSINESS BECAUSE HIS ACTIVITIES THERE WERE LESS IMPORTANT THAN HIS HOSPITAL WORK THE RULING WILL HURT MANY TAXPAYERS ESPECIALLY SALESPEOPLE BUT MANY OTHERS STILL SHOULD QUALIFY TAX ADVISERS SAY THE RULES ARE THAT THE HOME OFFICE MUST BE USED EXCLUSIVELY AND REGULARLY IN ONE OF THE FOLLOWING WAYS AS THE PRINCIPAL PLACE FOR A TRADE OR BUSINESS AS A PLACE TO MEET OR DEAL WITH PATIENTS CLIENTS OR CUSTOMERS OR IF THE OFFICE IS A SEPARATE STRUCTURE NOT ATTACHED TO YOUR HOME IT MUST BE USED IN CONNECTION WITH YOUR TRADE OR BUSINESS DEFINING PRINCIPAL PLACE IS TRICKY IN ESSENCE THE HOME OFFICE MUST BE WHERE TAXPAYERS DO THEIR MOST IMPORTANT WORK FOR EXAMPLE THE IRS SAYS SALESPEOPLE WOULD QUALIFY FOR THE DEDUCTION IF THEY MADE MOST OF THEIR SALES TO CUSTOMERS BY PHONE OR MAIL FROM THE HOME OFFICE AND SPENT SIGNIFICANTLY MORE TIME IN THE HOME OFFICE THAN VISITING CUSTOMERS BUT SALESPEOPLE WOULDN'T QUALIFY IF THEY DO MOST BUSINESS AT THE CUSTOMER'S OFFICE AND SPEND MUCH LESS TIME IN THEIR HOME OFFICE FOR FURTHER DETAILS CONSULT THE IRS'S NEWLY REVISED PUBLICATION 587 HERE'S SOME GOOD NEWS THE IRS SAID IT WON'T CHALLENGE HOMEOFFICE DEDUCTIONS FOR 1991 AND PRIOR YEARS IF THE TAXPAYER REASONABLY FELL WITHIN THE SCOPE OF ITS PREVIOUSLY PUBLISHED MATERIAL 9302230116 930223 WHO'S NEWS MITSUBISHI BANK LTD MITSUBISHI BANK LTD TOKYO TATSUHORI IMAGAWA WAS NAMED GENERAL MANAGER OF THIS JAPANESE BANK'S NEW YORK BRANCH MR IMAGAWA 49 YEARS OLD SUCCEEDS YUTAKA HASEGAWA 53 WHO IS RETURNING TO THE BANK'S TOKYO HEADQUARTERS TO TAKE ON A NEW ASSIGNMENT THAT HASN'T YET BEEN ANNOUNCED MR IMAGAWA WHO JOINED THE BANK IN 1966 MOST RECENTLY WORKED AS EXECUTIVE VICE PRESIDENT/GENERAL MANAGER OF THE NORTH AMERICAN DIVISION OF MITSUBISHI BANK 9302230115 930223 LEISURE & ARTS BOOKSHELF A PAIR OF ANGELS BY MERLE RUBIN THE POET AND DANCER OF RUTH PRAWER JHABVALA'S LATEST NOVEL DOUBLEDAY 199 PAGES 1995 ARE FIRST COUSINS BUT WHILE BRASSY LARA DAUGHTER OF A GLOBETROTTING SELFREALIZATION GURU HAS LIVED MOST EVERYWHERE SHY LITTLE ANGEL HAS NEVER STRAYED OUTSIDE THE SMALL RADIUS OF HER FAMILY'S MANHATTAN BROWNSTONE WHEN THEY FIRST MEET ANGEL IS EIGHT AND LARA SEVEN ANGEL IS ALREADY A POET A SWEET GENEROUS HOMELY CHILD WITH AN UNCANNY ABILITY TO SPONTANEOUSLY ERUPT INTO TORRENTS OF PURE JOYFUL VERSE AFTER ANGEL HAS DELIGHTED THE ASSEMBLED FAMILY MEMBERS WITH POEMS INVENTED BEFORE THEIR VERY EARS LARA PROCEEDS TO DO HER LITTLE DANCE SHE'S NOT VERY TALENTED BUT SHE'S A BORN PRIMA DONNA TO HELP HER AUDIENCE SHE CALLED OUT NOW I AM A FLOWER' NOW A PRINCESS' SEE THE DEER' ALTHOUGH HER MOVEMENTS WERE ALWAYS THE SAME SHE WAVED HER ARMS ABOVE HER HEAD SHE RAN NOW TO THE RIGHT OF THE ROOM NOW TO THE LEFTHER AUDIENCE OBLIGINGLY SAW WHAT SHE WANTED THEM TO SEE ANGEL GROWS UP IN THE COZY BROWNSTONE UNDER THE DOTING EYES OF HER DIVORCED MOTHER HELENA AND HER MATERNAL GRANDPARENTS ANNA AND SIEGFRIED SIMPLE GOODHEARTED GERMAN REFUGEES WHO SHOWER THEIR GIFTED GRANDCHILD WITH LOVE AND ATTENTION LARA'S FATHER DR HUGO MANARR IS HELENA'S BROTHER A PSYCHOLOGIST WHO SEES HIS VOCATION AS HELPING THE ALREADY HEALTHY ALONG THE PATH TOWARD HUMAN PERFECTIBILITY LONG DIVORCED FROM LARA'S BEAUTIFUL BUT UNSTABLE MOTHER HUGO IS ASSISTED IN HIS HUMANITYREDEEMING LABORS BY A SUCCESSION OF WHOLESOME BLOND ACOLYTES KNOWN AS THE VALKYRIES WHILE HER FATHER PURSUES THE PATH TO PERFECTION PRETTY LITTLE LARA IS WELL ON HER WAY TO BECOMING A CLASSIC PROBLEM CHILD SPARKLING EGOCENTRIC MANIC MANIPULATIVE AND DESPERATE FOR ATTENTION ANGEL OF COURSE FALLS FOR HER DAZZLING TINSEL CHARMS AND ALTHOUGH THE TWO DO NOT MEET AGAIN UNTIL THEIR EARLY 20S THE SHALLOW LARA RETAINS AN ALMOST MAGICAL HOLD OVER HER AWKWARD PLAIN COUSIN BY THIS TIME LARA HAS BEEN EXPELLED FROM EDUCATIONAL INSTITUTIONS ALL OVER THE WORLD AND HAS NOWHERE LEFT TO GO BUT NEW YORK WHERE SHE PROMPTLY SEDUCES ANGEL'S FATHER A CONVENTIONAL BUSINESSMAN WITH NO INTENTION OF LEAVING HIS SECOND WIFE AND FAMILY HE NONETHELESS ALLOWS LARA TO PERSUADE HIM TO INSTALL HER AND ANGEL IN A FLAT PURCHASED IN THE LATTER'S NAME ASIDE FROM HER FITFUL ATTEMPTS TO STUDY DANCE AND DRAMA SHE DROPS EVERY CLASS SHE TAKES LARA SEEMS TO HAVE AS HER MAIN GOAL TURNING ANGEL AGAINST HER FAMILY AND FRIENDS EACH NIGHT SHE RUSHES HOME FROM HER OFFICE JOB TO CHECK ON HER ERRATIC COUSIN WHO MORE OFTEN THAN NOT HAS SPENT THE DAY SHOPPING SOMETIMES SHOPLIFTING SLEEPING AND HAVING SEX WITH DOORMEN DELIVERY BOYS AND WHOMEVER ELSE HAS WANDERED INTO HER LAIR ANGEL'S HOPELESS ATTRACTION TO LARA IS ONLY THE TIP OF THE ICEBERG WHAT BINDS HER INEXTRICABLY IN THIS DANGEROUS ONESIDED LOVE RELATIONSHIP IS HER BELIEF THAT SHE IS THE ONLY PERSON WHO CAN SAVE HER INCREASINGLY OUTOFCONTROL COUSIN MS JHABVALA WHO'S MADE A SPECIALTY OF DISSECTING CHARACTERS IN THE GRIP OF PASSION FOLLY AND SELFDELUSION BRINGS HER USUAL BLEND OF COOL OBSERVATION BRACING IRONY AND DISTANT SYMPATHY TO POET AND DANCER SHE'S MORE SUCCESSFUL IN ILLUMINATING THE UNDERLYING STRUCTURE OF ANGEL'S OBSESSION THAN IN CONVEYING WHATEVER CHARM OR CHARISMA OF LARA'S MIGHT HAVE SPARKED IT IN THE FIRST PLACE POET AND DANCER IS THE SECOND OF MS JHABVALA'S 11 NOVELS TO BE SET OUTSIDE INDIA IN NEW YORK WHERE SHE'S NOW BEEN LIVING FOR MORE THAN A DECADE IT IS ALSO A HAUNTING AND CONVINCING PORTRAIT NOT ONLY OF A PASSION BUT OF A MILIEU A DELICATE ECOSYSTEM OF FAMILY AND FRIENDS THREATENED BY A POISONOUS FLOWER SPAWNED IN THEIR MIDST A GERMANJEWISH FAMILY IN NEW YORK IS ALSO THE STARTING POINT OF JANET HOBHOUSE'S BEAUTIFUL AND HARROWING LAST NOVEL THE FURIES DOUBLEDAY 293 PAGES 2250 LEFT UNFINISHED AT THE TIME OF HER DEATH IN 1991 IT BEGINS AS THE SAGA OF A MATRIARCHY FOUNDED BY A CLEVER BUT UGLY HEIRESS WHOSE BENEVOLENCE EARNS HER THE NICKNAME ANGEL HER TWO DAUGHTERS FOLLOW DIVERGENT PATHS OF DOCILITY AND REBELLION EMMA THE REBEL IN TURN HAS TWO DAUGHTERS ONE SELFCONTAINED THE OTHER DEPENDENT AND FRAGILE THE LATTER LOVELY HAPLESS BETT IS MOTHER TO HELEN THE NOVEL'S NARRATOR AND QUITE OBVIOUSLY THE AUTHOR'S ALTER EGO THE STORY OF THE EARLIER GENERATIONS SERVES AS PRELUDE TO HELEN'S STORY GROWING UP AS THE CHILD OF A PRETTY VULNERABLE DIVORCEE LIVING OFF THE DIMINISHING DIVIDENDS OF HER FAMILY'S DEPLETED CAPITAL AND HER OWN FADING BEAUTY FORTIFIED BY MOTHERLOVE AND EXAMPLES OF STRENGTH FROM HER OTHER FEMALE RELATIVES HELEN SEEKS OUT HER COLD FISH OF A FATHER NOW RESIDING IN ENGLAND SHE ATTENDS OXFORD FALLS DEEPLY IN LOVE MORE THAN ONCE MARRIES BUT CAN'T SEEM TO FIND INNER PEACE THE FURIES THAT PURSUE HER ARE ROOTED IN THE GUILT SHE FEELS AT BEING UNABLE TO REPAY HER MOTHER'S LOVE THE POWER OF THIS NOVEL EXTENDS BEYOND ITS THEME THE STORY IS STUDDED WITH BRILLIANT SOCIAL AND PSYCHOLOGICAL DETAIL AND THE VOICE THAT NARRATES HAS A SATISFYING COMPLEXITY CAPABLE OF EVOKING HIGHLY SUBJECTIVE STATES OF MIND WITH CLARITY PRECISION AND A GLEAM OF WRY HUMOR UNFINISHED THOUGH IT IS THE FURIES BOASTS A STARKLY INEVITABLE CONCLUSION AND PROVIDES A REMARKABLY COMPLETE PORTRAIT OF THE WAYS IN WHICH AN INDIVIDUAL LIFE IS FINALLY MORE THAN THE SUM OF ITS PARTS AND ITS PROGENITORS 9302230114 930223 INTERNATIONAL HOECHST PLANT SENDS TOXINS INTO AIR OVER FRANKFURT FRANKFURT AP A LEAK FROM AN OVERPRESSURIZED TANK AT A HOECHST AG PLANT SPEWED ABOUT 10 TONS OF MILDLY POISONOUS CHEMICALS INTO THE AIR OVER FRANKFURT THE GERMAN MAKER OF PHARMACEUTICALS CHEMICALS AND FIBERS SAID NO INJURIES WERE REPORTED PEOPLE WERE WARNED NOT TO LET CHILDREN PLAY OUTSIDE AND NOT TO EAT FOOD FROM THEIR GARDENS FIREFIGHTERS WORKED MOST OF YESTERDAY USING A NEUTRALIZING POWDER AND HIGHPRESSURE WATER HOSES TO WASH DOWN STREETS AND SIDEWALKS AND RESIDENTS WERE INSTRUCTURED TO CLEAN CONTAMINATED PARTS OF THEIR HOMES AND VEHICLES THE FRANKFURT FIRE DEPARTMENT SAID ABOUT 75 ACRES OF LAND IN THE SCHWANHEIM AND GRIESHEIM SUBURBS INCLUDING A STRETCH OF THE MAIN RIVER WERE COATED WITH THE CHEMICALS FROM THE PLANT WHICH IS IN GRIESHEIM HOECHST AND INVESTIGATORS ISSUED A STATEMENT SAYING THE CHEMICALS WERE MILDLY POISONOUS AND COULD CAUSE SKIN IRRITATIONS AND BREATHING PROBLEMS THE LEAK OF A MIX OF ORTHONITROANISOL CHLORNITROBENZOL AND MENTHOL OCCURRED ABOUT 430 AM LOCAL TIME MONDAY INVESTIGATORS SAID A SAFETY VALVE ON THE PRESSURIZED TANK OPENED SPEWING OUT A CLOUD THAT SETTLED ONTO THE GROUND IN A POWDERY RESIDUE OPERATIONS AT THE HOECHST PLANT WERE SHUT DOWN PENDING FURTHER INQUIRIES 9302230113 930223 WHO'S NEWS SMITHKLINE BEECHAM PLC SMITHKLINE BEECHAM PLC LONDON ALAIN GOMEZ RESIGNED AS A NONEXECUTIVE MEMBER OF THE PHARMACEUTICAL COMPANY'S BOARD MR GOMEZ THE 54YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THOMSON SA THE FRENCH ELECTRONICS CONGLOMERATE JOINED THE SMITHKLINE BOARD IN JANUARY 1991 SUCCEEDING MR GOMEZ ON THE 15MEMBER BOARD IS CHRISTOPHER HOGG CHAIRMAN OF COURTAULDS PLC AND OF REUTERS HOLDINGS PLC 9302230112 930223 INVESTORS' CONFIDENCE SLIPS BUT THEY PLAN TO ACQUIRE SHARES PAINEWEBBER SURVEY SHOWS SUPPORT FOR STOCK MARKET AMID LOW INTEREST RATES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDIVIDUAL INVESTORS' EUPHORIA ABOUT A STRENGTHENING ECONOMY IS WANING BUT THAT HASN'T STOPPED THEM FROM SNAPPING UP STOCKS THAT'S THE CONCLUSION OF A SURVEY OF 5000 PAINEWEBBER GROUP INC BROKERAGE CUSTOMERS POLLED THIS MONTH THE SURVEY SHOWS THAT 60 OF THE INDIVIDUAL INVESTORS POLLED SAY THEY PLAN TO BUY STOCKS OR STOCK MUTUAL FUNDS OVER THE NEXT FEW MONTHS UP FROM 56 IN JANUARY AND THE HIGHEST LEVEL IN A YEAR THE SURGE IN PLANNED STOCK PURCHASES COMES EVEN AS THESE INVESTORS' CONFIDENCE IN THE ECONOMY FELL THE FIRST TIME SINCE OCTOBER THAT PAINEWEBBER'S SURVEY HAS SHOWN INVESTORS' CONFIDENCE DECLINING INVESTORS ARE RUSHING TO BUY STOCKS BY DEFAULT SAYS SHAILENDRA GHORPADE WHO DIRECTS PAINEWEBBER'S MONTHLY SURVEY OF A SAMPLE OF ITS CUSTOMERS HE ADDS WITH INTEREST RATES LOW WHERE ELSE CAN YOU PUT YOUR MONEY THE PAINEWEBBER POLL WAS TAKEN BEFORE PRESIDENT CLINTON UNVEILED HIS ECONOMIC PLAN LAST WEEK STILL THE RESULTS SUGGEST THAT THE STOCK MARKET COULD CONTINUE TO BE BUOYED UNTIL OTHER INVESTMENTS OFFER COMPETING RATES OF RETURN INDEED JUST 6 OF THOSE SURVEYED IN THE POLL SAID THEY WOULD BUY BANK CERTIFICATES OF DEPOSIT IN THE NEXT FEW MONTHS THE LOWEST LEVEL SINCE PAINEWEBBER STARTED ITS SURVEY IN JUNE 1991 SAID JOSEPH GRANO HEAD OF THE FIRM'S BROKERAGE OPERATIONS THE POLL ALSO TRACKS INVESTOR CONFIDENCE IN THE ECONOMY MUCH LIKE THE CONFERENCE BOARD'S MONTHLY INDEX OF CONSUMER CONFIDENCE THE PAINEWEBBER INVESTORCONFIDENCE INDEX WHICH MEASURES EXPECTATIONS ON INFLATION INTEREST RATES AND THE STOCK AND REAL ESTATE MARKETS FELL TO 842 FROM 869 IN JANUARY THE DECLINE WAS THE FIRST SINCE SHORTLY BEFORE THE PRESIDENTIAL ELECTION THOUGH THE INDEX STILL IS HIGHER THAN IT WAS FOR MUCH OF 1992 THE CONFIDENCE INDICATOR IS PEGGED TO AN INDEX THAT STOOD AT 100 IN 1985 ABOUT 60 OF THOSE WHO PLAN TO BUY STOCKS SOON EXPECT TO PURCHASE GROWTH STOCKS PAINEWEBBER SAID WHAT KIND OF RETURNS DO THEY EXPECT INVESTORS ARE LOOKING FOR ANNUAL GAINS OF 12 FOR GROWTH STOCKS AND 16 FOR AGGRESSIVE GROWTH STOCKS PAINEWEBBER SAID FOR TOP STOCK PICKS HOWEVER MANY INVESTORS PLAN TO BUY BLUE CHIPS THE TOP FIVE STOCKS THAT INVESTORS EXPECT TO BUY SOON AMERICAN TELEPHONE & TELEGRAPH CO INTERNATIONAL BUSINESS MACHINES CORP WALT DISNEY CO MERCK & CO AND WALMART STORES INC ROUGHLY 91 OF INVESTORS SURVEYED SAY THEY OWN STOCKS THOSE SURVEYED HAVE AN AVERAGE AGE OF 52 WITH ANNUAL INCOME OF ABOUT 90000 AND INVESTABLE ASSETS OF 370000 SAID PAINEWEBBER THE NATION'S FIFTHLARGEST BROKERAGE FIRM 9302230111 930223 ANOTHER VICTIM OF SUPERFUND BY ROBERT M COX JR PRESIDENT CLINTON HAS SAID HE WANTS TO REDEFINE SUPERFUND THE ANTIPOLLUTION PROGRAM SO THAT IT GOES AFTER TRUE POLLUTERS AND NOT JUST DEEP POCKETS IF HIS WORD IS GOOD THAT CHANGE WILL BE OF GREAT HELP TO MANY COMPANIES BUT PERHAPS TOO LATE FOR MINE I AM THE THIRD GENERATION OF MY FAMILY TO BE CONNECTED WITH GILBERT SPRUANCE CO A PENNSYLVANIA MANUFACTURER OF INDUSTRIAL COATINGS FOR WOOD CABINETS AND FURNITURE IN 1984 WHILE I WAS EXECUTIVE VICE PRESIDENT WE AT SPRUANCE WERE NOTIFIED THAT OUR FORMER WASTE HAULER A MARVIN JONAS OF NEW JERSEY HAD TOLD THE ENVIRONMENTAL PROTECTION AGENCY THAT HE HAD HAULED WASTE FOR DU PONT HERCULES TEXACO AND MY FIRM IT TURNED OUT MR JONAS HAD DUMPED THE WASTE AT SITES IN NEW JERSEY MR JONAS DID THIS WITHOUT OUR FIRM'S KNOWLEDGE SINCE THE 1960S AND 1970S HE HAD IN FACT SUBMITTED TO US WHAT APPEARED TO BE ALL THE PROPER PAPER WORK FOR WASTE HAULAGE THE EVENTS IN QUESTION ACTUALLY TOOK PLACE IN THE 1960S AND 1970S BUT SUPERFUND WORKS RETROACTIVELY UNDER SUPERFUND RULES WE WERE IMPLICATED SPRUANCE HAD BEEN A SMALL TO MEDIUMSIZED FAMILY PAINT COMPANY SINCE 1906 DOING ABOUT 55 MILLION IN SALES IN 1987 ONCE MR JONAS TESTIFIED WE FOUND OURSELVES UNDER THE SUPERFUND JUGGERNAUT WITH NO MEANS OF ESCAPE THIS IS BECAUSE THE SUPERFUND LAW CARRIES JOINT AND SEVERAL LIABILITY ALONG WITH THE THREAT OF TREBLE DAMAGES MR JONAS WAS USING 10 TO 11 SITES IN NEW JERSEY IT DID NOT MATTER THAT OUR RECORDS DID NOT SHOW OUR WASTE GOING TO THESE SITES IT ONLY MATTERED THAT WE USED MR JONAS VERY LITTLE OF OUR WASTE ACTUALLY WENT TO THE ILLEGAL SITES BUT AFTER SETTLING OVER ONE SITE FOR MORE THAN 200000 WE WERE RANKED AS RESPONSIBLE FOR WASTE AT FIVE OTHER SITES AND ASKED TO PAY ANYWHERE FROM 175000 TO 13 MILLION TO GET OUT OF OUR SUPERFUND LIABILITY PER SITE SPRUANCE HAD NO CHOICE BUT TO FIGHT THE SITUATION OUR INSURANCE COMPANY ABANDONED US IT WON A DECLARATORY JUDGMENT THAT FREED IT FROM PAYING LEGAL COSTS AND INSURING ANY FURTHER SUPERFUND ISSUES INVOLVING SPRUANCE WE AT SPRUANCE COUNTERSUED IN NEW JERSEY LOSING IN THE LOWER COURT BUT ACHIEVING A FAVORABLE RULING AT THE APPELLATE LEVEL THE INSURANCE COMPANY PMA THEN TOOK THE CASE TO THE SUPERIOR COURT OF NEW JERSEY ORAL ARGUMENTS WERE HEARD LAST NOVEMBER AND DECEMBER IF WE ARE VINDICATED THE NEWS WILL COME TOO LATE TO SPARE US MANY COSTS FROM 1985 ON SPRUANCE PAID APPROXIMATELY 250000 IN LEGAL FEES IN DEFENSE AGAINST SUPERFUND WITH NOTHING TO SHOW FOR OUR EFFORTS THIS ON TOP OF SUPERFUND'S CLAIMS WE ALSO INVESTED TIME APPEALING TO GOVERNMENT LEADERS AND VISITING STAFFERS OF NEW JERSEY SENS BILL BRADLEY AND FRANK LAUTENBERG TO NO AVAIL OUR TRADE ASSOCIATION THE NATIONAL PAINT AND COATINGS ASSOCIATION ALSO TRIED TO HELP US BUT SO FAR IT HAS HAD NO LUCK SUCH CARES THREATENED TO DRIVE US OUT OF BUSINESS NO BANK IN PHILADELPHIA WOULD LEND WORKING CAPITAL TO US OR I SUSPECT TO ANY COMPANY WITH ENVIRONMENTAL PROBLEMS PREOCCUPIED WITH THE SUPERFUND SUIT WE LOST OUR FOCUS ON OUR CORE BUSINESS OUR ATTEMPTS TO SETTLE WITH THE EPA FAILED WE HAD MORE FILES IN HOUSE ON SUPERFUND THAN ON ANYTHING ELSE OUR CHOICE WAS TO DECLARE BANKRUPTCY OR TO SELL SPRUANCE IN THE END BY THIS TIME I WAS PRESIDENT I SOLD THE BUSINESS FOR THOSE WHO THINK I'M A BIG BAD BUSINESSMAN I'D LIKE TO CLARIFY A FEW THINGS I WAS BORN ON APRIL 22 1947 A DATE NOW RECOGNIZED AS EARTH DAY I CAMPAIGNED FOR ROBERT KENNEDY I'M A BABY BOOMER AND BASICALLY AN ENVIRONMENTALIST I THOUGHT A COMPANY LIKE OURS COULD WORK WITH THE GOVERNMENT I'M AN OPTIMIST BY NATURE AND WOULD LIKE TO SEE SOME REASONABLENESS TO THE SUPERFUND PROCESS WHY DOESN'T THE SYSTEM ALLOW AN ENVIRONMENTALLY SENSITIVE PAINT COMPANY TO COEXIST WITH SUPERFUND THE INTENTIONS OF BOTH ARE SIMILAR WHY DOES OUR SYSTEM CREATE SO MUCH INERTIA THAT THE LAWYERS AND ADMINISTRATORS GET RICH OFF A MANUFACTURING COMPANY THAT HAS BEEN TRYING TO DO THE CORRECT THING ALL ALONG A SUPERFUND NIGHTMARE BECAME A SPRUANCE TRAGEDY BUT MY HOPE CONTINUES TO BE THAT OUR NEW ADMINISTRATION WITH PRESIDENT CLINTON AND VICE PRESIDENT GORE WILL BE ABLE TO BALANCE ENVIRONMENTAL CONCERNS WITH SMALL BUSINESS NEEDS MR COX FORMER PRESIDENT OF GILBERT SPRUANCE IS CURRENTLY DOING CONSULTING IN THE INDUSTRIAL COATING FIELD 9302230110 930223 MEDICAL CARE AMERICA'S NET FELL 48 IN 4TH PERIOD HOMEINFUSION UNIT CITED BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS STILL STRUGGLING TO SHORE UP ITS TROUBLED HOMEINFUSION THERAPY UNIT MEDICAL CARE AMERICA INC ANNOUNCED ANOTHER QUARTER OF DISAPPOINTING RESULTS AND SAID THAT TWO TOP EXECUTIVES ARE LEAVING THE COMPANY INVESTORS RESPONDED NEGATIVELY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MEDICAL CARE STOCK WAS QUOTED AT 19 DOWN 1 AFTER MERGER AND RESTRUCTURING CHARGES OF 6 MILLION OR 13 CENTS A SHARE THE LARGE PROVIDER OF ALTERNATIVE HEALTHCARE SERVICES SAID ITS NET INCOME FOR THE FOURTH QUARTER FELL 48 TO 97 MILLION OR 27 CENTS A SHARE FROM 186 MILLION OR 50 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 20 TO 1735 MILLION FROM 1451 MILLION WHILE THE RESULTS WERE ONLY SLIGHTLY BELOW ANALYSTS' EARLIER PROJECTIONS AS WELL AS COMPANY ESTIMATES THE FIGURES PROVIDE ADDITIONAL INDICATIONS THAT THE COMPANY'S HOMEINFUSION UNIT HAS NOT YET REVERSED ITS PROBLEMS HOMEINFUSION SERVICES ENABLE PATIENTS TO GIVE THEMSELVES INTRAVENOUS MEDICATIONS AND/OR NUTRITION AT HOME THUS SAVING ON COSTLY HOSPITAL BILLS THE COMPANY SAID THE FOURTHQUARTER RESULTS INCLUDED ADDITIONAL RESERVES OF ABOUT 6 MILLION FOR DISCOUNTS AND HARDTOCOLLECT ACCOUNTS AT ITS HOMEINFUSION THERAPY UNIT ADDING THAT THE UNIT'S OPERATING PROFIT FELL 46 DURING THE LAST SIX MONTHS OF 1992 COMPARED WITH THE YEAREARLIER PERIOD I DON'T SEE ANY QUICK FIX FOR THE PROBLEMS WITH HOME INFUSION SAID JOHN HINDELONG AN INDUSTRY ANALYST WITH DONALDSON LUFKIN & JENRETTE THERE IS A LOT MORE WORK TO BE DONE MEANWHILE MEDICAL CARE ALSO SAID THAT ITS CHIEF FINANCIAL OFFICER RICHARD S TURNER 44 YEARS OLD HAD RESIGNED AND THAT BOB L WOOD 48 THE HOMEINFUSION UNIT'S PRESIDENT INTENDS TO STEP DOWN ON APRIL 15 THE COMPANY SAID THOSE POSTS WILL BE FILLED BUT NOT BY EXECUTIVES CURRENTLY WORKING FOR THE COMPANY BOTH MEN WERE PREVIOUSLY TOP EXECUTIVES AT CRITICAL CARE AMERICA INC THE WESTBOROUGH MASS HOMEINFUSION CONCERN THAT MERGED WITH MEDICAL CARE INTERNATIONAL INC DALLAS IN SEPTEMBER TO FORM MEDICAL CARE AMERICA ON NOV 24 PATRICK S SMITH CRITICAL CARE'S FOUNDER RESIGNED AS CHAIRMAN OF THE MERGED CONCERN AMID MOUNTING PROBLEMS IN ITS INFUSIONTHERAPY BUSINESS MR WOOD COULD NOT BE REACHED FOR COMMENT IN AN INTERVIEW MR TURNER SAID HIS RESIGNATION IS NOT RELATED TO RECENT OPERATING PROBLEMS WITHIN THE CRITICAL CARE UNIT HE SAID HE DECIDED TO LEAVE BECAUSE DONALD E STEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER HAD BEEN PERFORMING MANY OF THE TRADITIONAL DUTIES OF CHIEF FINANCIAL OFFICER WE'RE VERY FRIENDLY ABOUT THE ISSUE MR TURNER SAID OF HIS RESIGNATION IT'S A SITUATION WHERE DON'S STYLE IS TO DO MANY THINGS HIMSELF THE RECENT DEPARTURES HAVE SPAWNED SPECULATION AMONG SOME INDUSTRY ANALYSTS THAT THE COMPANY MIGHT EVENTUALLY SELL OR SPIN OFF THE TROUBLED HOMEINFUSION UNIT HOWEVER MEDICAL CARE AMERICA EXECUTIVES DENY ANY SUCH INTENTION NOTHING IS OUT OF THE QUESTION BUT IT IS A TRUE STATEMENT THAT WE ARE NOT CONSIDERING IT SAID CHRISTOPHER GRANT JR SENIOR VICE PRESIDENT WE'RE GOING TO DO EVERYTHING WE CAN TO FIX CRITICAL CARE AND MAKE IT RUN RIGHT SO FAR THAT EFFORT HAS INCLUDED AN OVERHAUL OF THE UNIT'S STRATEGIC THRUST MOVING AWAY FROM AN ALMOST EXCLUSIVE RELIANCE UPON SELLING HIGHCOST THERAPIES DIRECTLY TO PHYSICIANS INSTEAD THE COMPANY HAS ADOPTED LOWERCOST DELIVERY SYSTEMS TRAINING A NATIONAL SALES FORCE TO MARKET DIRECTLY TO MANAGEDCARE PROVIDERS THE COMPANY SAID IT IS CONFIDENT SUCH EFFORTS WILL RESULT IN POSITIVE RESULTS DURING THE SECOND HALF OF 1993 MEDICAL CARE STOCK HAS NEVER RECOVERED FROM THE DEVASTATING ONEDAY POUNDING IT TOOK ON SEPT 25 WHEN ITS SHARES PLUNGED 33 OR 57 TO 25 AFTER THE COMPANY ANNOUNCED THAT ITS THIRDQUARTER RESULTS WOULD FALL FAR BELOW EXPECTATIONS 9302230109 930223 TECHNOLOGY & MEDICINE GENERICDRUG STOCKS PLUNGE AMID FEARS OF CLINTON'S WAR ON HEALTHCARE COSTS BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL HIGHFLYING GENERIC DRUG STOCKS TOOK A BEATING AS INVESTORS GREW MORE ANXIOUS ABOUT PRESIDENT CLINTON'S DECLARED WAR ON HEALTHCARE COSTS MYLAN LABORATORIES INC OF PITTSBURGH TRADING AT ITS 52WEEK HIGH AS RECENTLY AS LAST WEEK AND ZENITH LABORATORIES INC OF NORTHVALE NJ TOOK THE WORST HITS WITH BOTH FALLING 4625 YESTERDAY MYLAN WHICH CLOSED AT 2575 ON THE NEW YORK STOCK EXCHANGE HAS LOST 10375 SINCE LAST WEDNESDAY ZENITH CLOSED AT 18 IN OVERTHECOUNTER TRADING OTHER GENERIC STOCKS ALSO TUMBLED COPLEY PHARMACEUTICAL INC OF CANTON MASS CLOSED AT 30 DOWN 225 ISRAEL'S TEVA PHARMACEUTICAL INDUSTRIES ADR CLOSED DOWN 2125 AT 3725 BOTH TRADE OVERTHECOUNTER AL LABORATORIES INC FORT LEE NJ DID THE BEST CLOSING UNCHANGED AT 20875 ON THE BIG BOARD BUT UNLIKE THE OTHER GENERICS AL LABS WHICH SPECIALIZES IN COUGH AND COLD MEDICINE HASN'T ENJOYED A RISE IN ITS STOCK RECENTLY MYLAN SAID ITS STOCK SLID BECAUSE INVESTORS WERE WORRIED ABOUT ITS PRESENCE IN PUERTO RICO WHERE THE CLINTON ADMINISTRATION HAS PROPOSED A HIGHER TAX RATE IN THE MIDST OF THE SELLING FRENZY THE COMPANY ISSUED A NEWS RELEASE STATING THAT THOSE OPERATIONS MAKE UP LESS THAN 10 OF SALES AND EARNINGS BUT ANALYSTS SAID THE MAIN REASON BEHIND THE SELLOFF WAS PROFITTAKING MOST OF THE GENERIC DRUG MAKERS HAD BEEN TRADING AT OR NEAR THEIR 52WEEK HIGHS THEY'VE DONE PRETTY WELL OVER THE LAST YEAR OR SO SAYS DRUG ANALYST HEMANT SHAH OF HKS & CO INC OF WARREN NJ GENERIC DRUG EXECUTIVES MAINTAIN THAT PRICE CUTS ON BRAND DRUGS WON'T FORCE THEM TO LOWER THEIR OWN PRICES THE PRICE RANGE BETWEEN US AND THE BRANDS IS SO GREAT NOW THAT TO COMPETE WITH GENERIC DRUGS ON PRICE BRAND DRUG MAKERS WOULD HAVE TO LOWER PRICES TO A POINT WHERE IT WOULD BE UNPROFITABLE SAYS MARTIN ZEIGER EXECUTIVE VICE PRESIDENT OF RUGBY LABORATORIES THE LARGEST GENERIC DRUG DISTRIBUTOR IN THE US IN REALITY WE'RE AN ALTERNATIVE TO THE DRUG INDUSTRY SAID JOHN KLEIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ZENITH LABORATORIES IF ANYTHING HE SAID MR CLINTON'S PLANS TO CUT HEALTH CARE COSTS COULD BENEFIT MAKERS OF GENERIC DRUGS IT'S THE BEST THING THAT'S HAPPENED TO THE GENERIC DRUG INDUSTRY 9302230108 930223 RAWSTEEL PRODUCTION ROSE 02 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 02 LAST WEEK TO 1799000 TONS FROM 1796000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 05 FROM THE 1790000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 818 OF ITS CAPABILITY LAST WEEK COMPARED WITH 817 THE PREVIOUS WEEK AND 814 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9302230107 930223 WHO'S NEWS CEPHALON INC CEPHALON INC WEST CHESTER PA R EDWARD BRANSON WAS NAMED VICE PRESIDENT FOR MANUFACTURING A NEW POSITION AT THIS DEVELOPER OF DRUGS TO TREAT NEUROLOGICAL DISORDERS DR BRANSON 46 YEARS OLD WILL OVERSEE BIOTECHNOLOGY MANUFACTURING AT THE COMPANY'S BELTSVILLE MD FACILITY HE PREVIOUSLY WORKED AS DIRECTOR OF CONTRACT BIOTECHNOLOGY AT A UNIT OF BAXTER INTERNATIONAL INC 9302230106 930223 TECHNOLOGY COMPUTER FIRMS JOIN TO SET WORKSTATION STANDARDS PALO ALTO CALIF HEWLETTPACKARD CO SUN MICROSYSTEMS INC AND INTERNATIONAL BUSINESS MACHINES CORP SAID THEY HAVE AGREED TO WORK TOGETHER TO TRY TO ESTABLISH STANDARD FORMATS FOR THE WAY WORKSTATION COMPUTERS COMMUNICATE WITH EACH OTHER THE PURPOSE OF THE TWOYEAR AGREEMENT CALLED THE FIBRE CHANNEL SYSTEMS INITIATIVE IS TO FORMULATE TECHNICAL SPECIFICATIONS THAT MAKERS OF COMPUTER HARDWARE AND SOFTWARE CAN FOLLOW WHEN MANUFACTURING POWERFUL DESKTOP COMPUTERS CALLED WORKSTATIONS AND RELATED EQUIPMENT AND SOFTWARE A HEWLETTPACKARD SPOKESMAN SAID THE INITIATIVE BY THE WORLD'S THREE LARGEST WORKSTATION MAKERS FOR STANDARDIZING THE WAY DISPARATE MACHINES OPERATE TOGETHER COULD SERVE TO BOOST THE SALES OF SOME COMPUTER MAKERS BECAUSE BUYERS WILL BE FREER TO CHOOSE PURCHASES BASED ON PRICE AND PERFORMANCE RATHER THAN BE LIMITED TO PURCHASES FROM A PARTICULAR MANUFACTURER INDUSTRY ANALYSTS SAID AND WITH A STANDARD SET OF TECHNICAL SPECIFICATIONS HARDWARE AND SOFTWARE DEVELOPERS CAN DEVELOP PRODUCTS MORE EFFICIENTLY 9302230105 930223 WHO'S NEWS ALLOU HEALTH & BEAUTY CARE INC ALLOU HEALTH & BEAUTY CARE INC BRENTWOOD NJ CHAIRMAN VICTOR JACOBS 60 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS COSMETICS DISTRIBUTOR MR JACOBS SUCCEEDS HIS SON HERMAN JACOBS 34 AS CHIEF EXECUTIVE THE YOUNGER MR JACOBS CURRENTLY THE COMPANY'S PRESIDENT WILL BECOME CHIEF OPERATING OFFICER A NEW POSITION RAMON MONTES 45 FORMERLY VICE PRESIDENT OF OPERATIONS AND SALES WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND WILL FOCUS EXCLUSIVELY ON SALES 9302230104 930223 MONDAY'S MARKETS BOND RALLY SENDS YIELD ON 30YEAR ISSUE BELOW 7 BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL AN EXPLOSIVE RALLY IN THE BOND MARKET SENT INTEREST RATES PLUNGING DRIVING LONG BOND YIELDS BELOW 7 FOR THE FIRST TIME IN MORE THAN 15 YEARS MOST MAJOR STOCK INDEXES ALSO SURGED BUT THE DOLLAR FELL HITTING A RECORD AGAINST THE YEN THE TREASURY'S 30YEAR BENCHMARK BOND ROCKETED UP 7/8 POINT OR 875 FOR EACH 1000 FACE AMOUNT TO YIELD 693 THE LOWEST LEVEL SINCE THE TREASURY BEGAN ISSUING 30YEAR BONDS IN 1977 THE DOW JONES INDUSTRIAL AVERAGE PROPELLED BY THE TUMBLING INTEREST RATES CLIMBED 2081 POINTS TO 334299 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ADVANCED 102 TO 43524 BUT A BIG DROP IN ONE HIGHFLYING BIOTECHNOLOGY STOCK PULLED OTHERS DOWN TOO SENDING THE NASDAQ COMPOSITE INDEX REELING 1119 OR 169 TO 65242 ITS LOWEST CLOSING LEVEL SINCE LATE NOVEMBER BONDS STARTED WITH A MODEST DIP BUT RALLIED AFTER THE US GOVERNMENT REPORTED A BUDGET SURPLUS OF 2981 BILLION IN JANUARY COMPARED WITH A 1566 BILLION DEFICIT A YEAR EARLIER THE JANUARY SURPLUS WAS ALSO A TURNAROUND FROM DECEMBER WHEN THE US FEDERAL GOVERNMENT HAD A BUDGET DEFICIT OF 3895 BILLION THE REPORT COMBINED WITH AN OVERALL FAVORABLE MOOD AMONG BOND INVESTORS TOWARD PRESIDENT CLINTON'S ECONOMIC PLAN GALVANIZED THE BOND MARKET ANALYSTS SAID WHAT UNFOLDED WAS A PRETTY POWERFUL RALLY SAID MICKEY LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES CLEARLY THE FACT THAT WASHINGTON POLICY MAKERS ARE SERIOUSLY CONSIDERING THE CLINTON DEFICITREDUCTION PROPOSAL AND IT'S GETTING GOOD PLAY IN THE PRESS IS CONTRIBUTING TO THE MARKET'S POSITIVE TONE GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG SAID SHE THINKS INTEREST RATES ARE HEADED STILL LOWER AND STOCKS PRICES ARE POISED TO MOVE HIGHER ONE OF THE REASONS SHE IS SO BULLISH IS THAT THE DOW JONES UTILITY AVERAGE AN INDEX OF 11 ELECTRIC UTILITY STOCKS AND FOUR NATURAL GAS STOCKS HIT A RECORD YESTERDAY THE AVERAGE OUTPERFORMED THE DOW JONES INDUSTRIALS TO SURGE 601 OR 256 TO 24061 THE NEW HIGHS IN THE UTILITY AVERAGE ARE A TERRIFIC SIGN FOR STOCKS BECAUSE IT MEANS THAT STOCK PRICES HAVEN'T PEAKED YET SHE SAYS AS LONG AS THE UTILITY AVERAGE IS STEADILY RISING MS DUDACK SAID THE ODDS FAVOR NEW HIGHS IN THE DOW JONES INDUSTRIAL AVERAGE AS INTEREST RATES HAVE BEEN SLIDING IN RECENT MONTHS MS DUDACK SAID INVESTORS HAVE SHOWN GREATER INTEREST IN STOCKS THAN IN BONDS THE CURRENT LOW YIELD ON LONGTERM TREASURY BONDS WILL ALMOST CERTAINLY MAKE STOCKS INCREASINGLY ATTRACTIVE SHE SAID WORLDWIDE STOCK PRICES GAINED THE DOW JONES WORLD STOCK INDEX ROSE 055 TO 9475 BEFORE REBOUNDING A BIT ON PROFITTAKING THE DOLLAR TUMBLED TO A RECORD LOW OF 11594 YEN ITS PREVIOUS NADIR OF 11820 YEN WAS SET FRIDAY AFTER US TREASURY SECRETARY LLOYD BENTSEN SAID HE WOULD LIKE TO SEE JAPAN'S CURRENCY STRENGTHEN YESTERDAY'S WAVE OF DOLLAR SELLING BEGAN EARLY MONDAY IN FAR EASTERN MARKETS WHERE TRADERS THERE HAD THEIR FIRST CHANCE TO REACT TO MR BENTSEN'S REMARKS AND CARRIED THROUGH INTO EUROPEAN AND US TRADING YOU CLEARLY HAVE MARKET SENTIMENT REACTING TO THE BENTSEN COMMENT THAT THE YEN SHOULD STRENGTHEN TO HELP ALLEVIATE JAPAN'S TRADE SURPLUS WITH THE US SAID JOHN LYMAN A SENIOR CORPORATE CURRENCY DEALER AT BANK OF TOKYO LTD IN NEW YORK HE ALSO POINTED TO THIS COMING WEEKEND'S MEETING OF FINANCE MINISTERS FROM THE SEVEN MAJOR INDUSTRIAL COUNTRIES WHERE PEOPLE EXPECT THE EUROPEANS AND CANADA AS WELL AS THE US TO PUT PRESSURE ON THE JAPANESE TO TAKE STEPS TO REDUCE THEIR HUGE OVERALL TRADE SURPLUS NEVERTHELESS MR LYMAN WAS SKEPTICAL ABOUT THEIR CHANCES OF SUCCESS OVER THE PAST 7 1/2 YEARS THE YEN HAS RISEN ABOUT 150 AGAINST THE DOLLAR AND THAT HASN'T MADE A SIGNIFICANT DENT ON JAPAN'S TRADE SURPLUS HE PREDICTED THE DOLLAR COULD FALL TO 112 OR 113 YEN OVER THE NEXT FEW WEEKS BUT THAT WILL ONLY BE ON MAXIMUM YENBUYING FRENZY BOND PRICES RALLIED SHORTERTERM GOVERNMENT BONDS CLIMBED SHARPLY WITH SEVENYEAR TREASURY NOTES GAINING MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 566 THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16235 MARKS AND 11640 YEN COMPARED WITH 16378 MARKS AND 11822 YEN FRIDAY 9302230103 930223 WHO'S NEWS BATTLE MOUNTAIN GOLD CO BATTLE MOUNTAIN GOLD CO HOUSTON RODNEY L GRAY 40 YEARS OLD ENRON CORP'S SENIOR VICE PRESIDENT FINANCE AND TREASURY WAS NAMED TO THE BOARD OF THE MINING COMPANY INCREASING THE BOARD'S SIZE TO 11 9302230102 930223 INTERNATIONAL KUWAIT IS UNRESPONSIVE TO PLEAS TO DROP BOYCOTT OF US FIRMS WITH TIES TO ISRAEL BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL KUWAIT CITY TWO YEARS AFTER IT WAS LIBERATED BY USLED FORCES KUWAIT STILL ACTIVELY USES AND ADDS TO A LIST OF US COMPANIES IT BOYCOTTS BECAUSE THEY HAVE COMMERCIAL TIES WITH ISRAEL SECRETARY OF STATE WARREN CHRISTOPHER AT A MEETING IN KUWAIT TWICE ASKED THE COUNTRY'S RULER TO TAKE STEPS TO LIFT THE BOYCOTT AS PROMISED BY KUWAIT AFTER ITS LIBERATION A US OFFICIAL SAID BOTH TIMES KUWAIT'S EMIR SHEIK JABER ALSABAH WAS NOT RESPONSIVE THE OFFICIAL SAID AT THE END OF THE VISIT DESIGNED TO HIGHLIGHT THE RESTORATION OF KUWAIT AND SHOW US RESOLVE AGAINST SADDAM HUSSEIN MR CHRISTOPHER TOLD THE EMIR THAT THE US AMBASSADOR TO KUWAIT WOULD FOLLOW UP ON THE BOYCOTT ISSUE LATER YESTERDAY MR CHRISTOPHER FLEW BY HELICOPTER FROM CYPRUS TO BEIRUT TO SHOW SUPPORT FOR LEBANON'S EFFORT TO REBUILD ITS GOVERNMENT AFTER A 16YEAR CIVIL WAR AND TO URGE LEBANON TO RESUME PEACE TALKS WITH ISRAEL AT A BEIRUT NEWS CONFERENCE MR CHRISTOPHER SAID LEBANESE LEADERS AGREED THAT THERE SHOULD BE AN EARLY RETURN TO NEGOTIATIONS IF A SOLUTION CAN BE FOUND TO THE STALEMATE CREATED WHEN ISRAEL DEPORTED 415 PALESTINIAN FUNDAMENTALISTS IN DECEMBER DURING HIS MIDEAST TRIP MR CHRISTOPHER HAS FOUND A SIMILAR WILLINGNESS IN JORDAN AND SYRIA TO RESUME PEACE TALKS IF THE DEPORTEE ISSUE IS RESOLVED MR CHRISTOPHER BEGINS TALKS TODAY WITH ISRAELIS AND WITH PALESTINIANS WHO HAD BEEN NEGOTIATING WITH ISRAEL EARLIER THIS MONTH THE SECRETARY OF STATE AND ISRAELI PRIME MINISTER YITZHAK RABIN ANNOUNCED PLANS FOR A PHASED IN RETURN OF THE DEPORTEES DURING THE YEAR BUT ARAB LEADERS HAVE INDICATED THAT THE ISRAELIS MUST TAKE FURTHER STEPS BEFORE PEACE TALKS CAN RESUME THE DEPORTEES INSIST THAT THEY ALL BE ALLOWED TO RETURN IMMEDIATELY REGARDING THE BOYCOTT ISSUE KUWAIT TOLD THE US AFTER THE PERSIAN GULF WAR THAT IT WOULD RELAX ITS ENFORCEMENT OF THE ARAB BOYCOTT OF ISRAEL KUWAIT KEPT THAT PROMISE IN THE MONTHS FOLLOWING ITS LIBERATION USING US COMPANIES TO HELP ITS REBUILDING EFFORT WITHOUT INVESTIGATING THEIR DEALINGS WITH ISRAEL TOO DEEPLY BUT JOE KAMALICK PUBLISHER OF THE HOUSTONBASED BOYCOTT LAW BULLETIN WHICH MONITORS BOYCOTT ACTIVITY SAYS KUWAIT'S BOYCOTT MONITORING HAS BECOME MORE ACTIVE IN THE PAST YEAR IN A LETTER TO MR KAMALICK WILLIAM SKIDMORE DIRECTOR OF THE COMMERCE DEPARTMENT'S OFFICE OF ANTIBOYCOTT COMPLIANCE SAID THERE WAS A CONTINUING FLOW OF REQUESTS FROM KUWAIT TO US COMPANIES IN 1992 ABOUT THEIR BUSINESS WITH ISRAEL AND A STATE DEPARTMENT OFFICIAL WROTE IN A LETTER IN OCTOBER TO THE AMERICAN JEWISH CONGRESS THAT KUWAIT HAS CONTINUED TO PUBLISH REGULATIONS ADDING AND SUBTRACTING FIRMS FROM THE BOYCOTT LIST IN ACCORDANCE WITH DECISIONS TAKEN BY THE ARAB LEAGUE BOYCOTT OFFICE THE ARAB LEAGUE MAINTAINS BOTH A DIRECT BOYCOTT OF ISRAELI PRODUCTS AND A SECONDARY BOYCOTT OF COMPANIES THAT DO BUSINESS WITH ISRAEL UNDER US LAW PARTICIPATING IN OR ASSISTING A SECONDARY BOYCOTT IS ILLEGAL 9302230101 930223 WHO'S NEWS REYNOLDS METALS CO REYNOLDS METALS CO RICHMOND VA HARRY V HELTON THIS ALUMINUM CONCERN'S 58YEAROLD EXECUTIVE VICE PRESIDENT FOR METALS AND RAW MATERIALS WILL TAKE EARLY RETIREMENT ON MARCH 1 HIS DUTIES WILL BE ASSUMED BY TWO OTHER EXECUTIVE VICE PRESIDENTS J WILT WAGNER 51 WHO WILL OVERSEE RAW MATERIALS METALS AND INDUSTRIAL PRODUCTS AND JEREMIAH J SHEEHAN 54 WHO WILL BE RESPONSIBLE FOR FABRICATED PRODUCTS A SPOKESWOMAN SAID THE CHANGES WON'T LEAD TO SUBSTANTIAL CHANGES IN OPERATIONS OR COST SAVINGS 9302230100 930223 WHO'S NEWS LOTUS SELECTS PAPOWS TO BE VICE PRESIDENT OF ITS NOTES DIVISION CAMBRIDGE MASS LOTUS DEVELOPMENT CORP SAID IT NAMED JEFFREY PAPOWS FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF COGNOS INC VICE PRESIDENT OF ITS NOTES PRODUCT DIVISION COGNOS EARLIER ANNOUNCED THAT MR PAPOWS 39 YEARS OLD WAS DEPARTING COGNOS BY MUTUAL AGREEMENT MR PAPOWS IS CREDITED WITH TURNING AROUND COGNOS A SOFTWARE MAKER IN BURLINGTON MASS LOTUS SAID THAT MR PAPOWS'S POST REPRESENTS A NEW POSITION CREATED AS PART OF A REORGANIZATION OF THE COMPANY'S COMMUNICATIONS PRODUCTS BUSINESS WHICH FORMERLY INCLUDED THE COMPANY'S NOTES BUSINESS NOTES IS A SHARED DATABASE AND COMMUNICATIONS SOFTWARE PACKAGE AS PART OF THE REORGANIZATION LARRY CRUME VICE PRESIDENT MOBILE COMPUTING DIVISION HAS BEEN PLACED IN CHARGE OF LOTUS'S ELECTRONIC MAIL BUSINESS LOTUS ADDED 9302230099 930223 CORRECTIONS & AMPLIFICATIONS CHINA'S POPULATION ROSE 12 LAST YEAR TO 117 BILLION FROM A YEAR EARLIER IN YESTERDAY'S WORLD WIRE COLUMN THE PERCENTAGE WAS MISSTATED AS 12 NONFARM PRODUCTIVITY IN THE US GREW 27 IN 1992 THE LARGEST INCREASE IN 20 YEARS AN ARTICLE YESTERDAY ON HOW ASIAN GROWTH IS STILL DEPENDENT ON THE US ECONOMY INCORRECTLY SAID THAT US PRODUCTIVITY OVERALL ROSE THAT AMOUNT 9302230098 930223 SYNERGEN'S DATA ON SEPSIS DRUG DISMAYS MARKET FIRM'S SHARES PLUNGE 68 AS BROAD EFFECTIVENESS PRODUCT ISN'T PROVEN BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL SYNERGEN INC'S SHARE PRICE PLUNGED 68 AFTER RESULTS FOR A MAJOR TRIAL OF ANTRIL THE COMPANY'S FLAGSHIP DRUG INDICATED ANOTHER SETBACK IN THE SEARCH FOR A WIDELY EFFECTIVE DRUG FOR SEPSIS EVEN THOUGH ANTRIL APPEARS TO WORK FOR SOME PATIENTS WITH THE OFTENLETHAL BLOOD INFECTION WALL STREET CONSIDERED THE DRUG'S FAILURE TO MATCH STRONG FINDINGS OF AN EARLIER TRIAL A MAJOR DISAPPOINTMENT INVESTORS WHO HAD COUNTED ON POSITIVE RESULTS OF THE TRIAL TO HELP LIFT BIOTECHNOLOGY STOCKS OUT OF THEIR DOLDRUMS PUMMELED THE ENTIRE INDUSTRY PSYCHOLOGICALLY SOME INVESTORS CONSIDERED SYNERGEN AS THE ATLAS FOR BIOTECHNOLOGY SAID ANALYST MARK SIMON OF ROBERTSON & STEPHENS SAN FRANCISCO TODAY THE GLOBE FELL INDEED OTHER BIOTECH SHARES FELL ABOUT 10 AFTER ALREADY DROPPING 20 SINCE THE BEGINNING OF THE YEAR SOME ANALYSTS ATTRIBUTED THE RECENT DECLINE TO PRESIDENT CLINTON'S ATTACK ON DRUG PRICES SYNERGEN'S SHARES FELL 28625 TO 1350 IN HEAVY OVERTHECOUNTER TRADING OF 21 MILLION SHARES SCIENTISTS SAID SYNERGEN'S TRIAL RESULTS REFLECT THE COMPLEX NATURE OF SEPSIS A SYNDROME THAT KILLS 100000 US HOSPITAL PATIENTS A YEAR AND THE DIFFICULTY IN IDENTIFYING WHO MIGHT BENEFIT FROM TREATMENTS BEING DEVELOPED BY THE BIOTECHNOLOGY INDUSTRY IN THE PAST YEAR TWO OTHER COMPANIES CENTOCOR INC AND XOMA CORP HAVE FAILED TO GET INITIALLY PROMISING SEPSIS TREATMENTS ON THE MARKET SYNERGEN SAID ITS PRELIMINARY ANALYSIS OF A TRIAL INVOLVING 893 PATIENTS SHOWED THAT 29 OF THOSE GIVEN A HIGH DOSE OF ANTRIL DIED COMPARED WITH 31 GIVEN A LOW DOSE AND 34 WHO WERE ADMINISTERED A PLACEBO OR DUMMY DRUG THE RESULTS INDICATE THE HIGH DOSE OF THE DRUG REDUCED DEATH BY ABOUT 15 AN EARLIER TRIAL INVOLVING 100 PATIENTS DEMONSTRATED A REDUCTION IN DEATH OF 40 TO 60 FOR ANTRIL PROVOKING A WAVE OF OPTIMISM ABOUT THE DRUG'S CHANCES WE WERE DISAPPOINTED THAT THE RESULTS DID NOT MATCH THOSE OF THE EARLIER TRIAL SAID JON SAXE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE BOULDER COLO BIOTECHNOLOGY CONCERN NEVERTHELESS MR SAXE SAID THE ANALYSIS SHOWED THAT AMONG ONEHALF TO TWOTHIRDS OF THE PATIENTS CONSIDERED MOST SERIOUSLY ILL IN THE STUDY ANTRIL REDUCED MORTALITY BY 20 TO 25 HE SAID IT WOULD BE POSSIBLE FOR DOCTORS TO IDENTIFY SERIOUSLY ILL PATIENTS AT THE TIME OF TREATMENT WE CAN TELL PEOPLE BASED ON REAL DATA WHEN IT IS BEST TO USE THE DRUG AND WHEN IT ISN'T MR SAXE SAID IN A CONFERENCE CALL WITH JOURNALISTS SUCH INFORMATION IS EXPECTED TO BE CRUCIAL FOR MARKETING THE DRUG WHICH SOME ANALYSTS THINK COULD COST AS MUCH AS 3000 A TREATMENT BUT THIS SUBGROUP OF THOSE APPARENTLY HELPED BY THE TREATMENT WAS IDENTIFIED IN THE ANALYSIS RESEARCHERS DIDN'T DESIGN THE STUDY TO TREAT ONLY THE SICKEST PATIENTS THUS THE RESULTS MAY NOT BE SUFFICIENT TO PERSUADE REGULATORS TO PERMIT MARKETING OF THE MEDICINE MR SAXE SAID THAT PENDING MUCH MORE ANALYSIS AND DISCUSSIONS WITH REGULATORS THE COMPANY STILL PLANS TO SUBMIT ITS MARKETING APPLICATION TO THE FOOD AND DRUG ADMINISTRATION IN THE THIRD QUARTER WHILE THE COMPANY PLANS FOLLOWUP STUDIES IN ANY EVENT MR SAXE SAID HE IS HOPEFUL ANOTHER TRIAL WON'T BE NEEDED TO WIN MARKETING APPROVAL BUT CENTOCOR AND XOMA WHOSE EXPERIMENTAL PRODUCTS ALSO APPEARED TO WORK ON A PORTION OF PATIENTS TREATED HAD SIMILAR HOPES DASHED BY THE FDA ANALYSTS WERE SKEPTICAL THAT SYNERGEN COULD AVOID THE DELAYS AND EXPENSE OF ANOTHER TRIAL WHILE SOME OF THE DATA APPEAR PROMISING SAID DAVID STONE ANALYST AT COWEN & CO OUR PREDICTION IS THAT THE FDA WON'T GO ALONG WITHOUT ANOTHER TRIAL PETER DRAKE AT VECTOR SECURITIES INTERNATIONAL DEERFIELD ILL WAS LESS OPTIMISTIC ANTRIL IS AN IMPERILED DRUG RIGHT NOW HE SAID WITH AN ANTICIPATED PRICE OF 3000 AND AT BEST A 15 REDUCTION IN MORTALITY ANTRIL WON'T FLY IN CLINTON'S HEALTH CARE SYSTEM HE MAINTAINED MOUNTING A SECOND TRIAL OF ONLY A VERY SICK POPULATION WILL BE HARDER TO DESIGN AND EXECUTE THAN THE COMPLETED TEST HE ADDED SETTING SYNERGEN'S MARKETING TIME TABLE BACK BY AS MUCH AS THREE YEARS LAST MONTH AND EARLY THIS MONTH SYNERGEN'S SHARES TRADED IN THE HIGH 50S TO MID60S RANGE AT THE END OF JANUARY RUMORS THAT THE ANTRIL RESULTS WERE POOR SPREAD ON WALL STREET APPARENTLY PROVOKED BY PHONE CALLERS CLAIMING TO HAVE KNOWLEDGE OF THE TRIAL THE COMPANY SAID AT THE TIME THAT THE DATA COMPILED AT MORE THAN 60 MEDICAL CENTERS IN THE US AND EUROPE WERE STILL BLINDED AND NOT AVAILABLE TO ANYONE THE COMPANY SAID IT UNBLINDED THE DATA OVER THE WEEKEND REVEALING WHICH PATIENTS RECEIVED THE PLACEBO AND WHICH RECEIVED ANTRIL IT ANNOUNCED THE PRELIMINARY FINDINGS YESTERDAY MORNING THE STOCK MARKET DRUBBING CLOSES OFF ANY OPPORTUNITY TO RAISE NEW EQUITY CAPITAL SYNERGEN'S MR SAXE ACKNOWLEDGED BUT HE SAID THE COMPANY HAS 240 MILLION IN THE BANK AND A STRONG BALANCE SHEET HE PRESENTED THE DATA TO EMPLOYEES YESTERDAY MORNING AND TOLD THEM THERE WOULDN'T BE ANY LAYOFFS THOUGH THE RATE OF HIRING MAY SLOW ANTRIL IS ALSO BEING DEVELOPED FOR RHEUMATOID ARTHRITIS AND SEVERAL OTHER INFLAMMATORY CONDITIONS WE DON'T FEEL THE INTRINSIC VALUE OF THE COMPANY HAS CHANGED AT ALL MR SAXE SAID WE FEEL WE HAVE A PRODUCT THAT CAN DELIVER A MEANINGFUL CLINICAL BENEFIT AND WE THINK THAT'S A GOOD THING MR SAXE DECLINED TO DEFINE MEANINGFUL OR TO DESCRIBE THE STATISTICAL SIGNIFICANCE OF THE RESULTS AN INDICATOR OF THEIR VALIDITY RESEARCHERS WILL PRESENT A MORE THOROUGH ANALYSIS OF THE DATA AT THE 13TH INTERNATIONAL SYMPOSIUM ON INTENSIVE CARE AND EMERGENCY MEDICINE IN BRUSSELS ON MARCH 23 9302230097 930223 POLITICS & POLICY FRESHMAN DEMOCRATS MAY FORCE CLINTON TO PUT SPENDING CUTS AHEAD OF EFFORT TO SPUR ECONOMY BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE DEMOCRATS ELECTED WITH BILL CLINTON ON THE PROMISE OF CHANGE MAY WELL FORCE THE NEW PRESIDENT TO MAKE SOME CHANGES OF HIS OWN SLOWING DOWN THE STIMULUS AND CUTTING MORE SPENDING IN HIS ECONOMIC PACKAGE LESS THAN A WEEK AFTER MR CLINTON UNVEILED HIS PLAN DEMOCRATIC FRESHMEN WHOSE SUPPORT IS CRITICAL TO THE ADMINISTRATION'S SUCCESS ARE EXPRESSING RESERVATIONS ABOUT THE ABSENCE OF DEEPER BUDGET CUTS AND ABOUT THE WISDOM OF VOTING FOR AN IMMEDIATE 163 BILLION IN NEW SPENDING TO STIMULATE THE ECONOMY BEFORE LOCKING IN PROMISED DEFICIT REDUCTION DOES IT MAKE SENSE TO HAVE ONE LAST PIECE OF CHOCOLATE FUDGE PIE BEFORE YOU GO ON A DIET NO SAYS REP SAM COPPERSMITH AN ARIZONA DEMOCRAT WHO QUESTIONS HOW MUCH THE STIMULUS PACKAGE WILL HELP THE ECONOMY AFTER DISCUSSING THE WHITE HOUSE PROPOSAL WITH HIS CINCINNATI CONSTITUENTS OVER THE WEEKEND FRESHMAN REP DAVID MANN ADDS THEY'RE SAYING LET'S CUT SOME SPENDING FIRST BEFORE WE TALK ABOUT ANYTHING ELSE REP MANN SENT MR CLINTON A LETTER YESTERDAY URGING HIM TO PUT THE WHOLE FEDERAL BUDGET ON THE TABLE FOR POSSIBLE CUTS THESE RESERVATIONS ARE SIGNIFICANT BECAUSE MR CLINTON FASHIONED A DECIDEDLY DEMOCRATIC PACKAGE WHOSE PASSAGE WILL REQUIRE OVERWHELMING SUPPORT WITHIN HIS PARTY THE DEFECTION OF AS FEW AS 41 OF THE 258 HOUSE DEMOCRATS COULD SINK THE PLAN AND THE RESERVATIONS ARE PARTICULARLY SIGNIFICANT COMING FROM THE 64 DEMOCRATIC FRESHMEN WHO HAVE THE CLOSEST PERSONAL IDENTIFICATION WITH MR CLINTON BECAUSE THEY WERE SWEPT INTO OFFICE AT THE SAME TIME THE HOUSE LEADERSHIP HOPES TO OVERCOME THIS HESITANCY BY MOVING THE STIMULUS PACKAGE IN CLOSE TANDEM WITH THE BUDGET RESOLUTION BEFORE THE SPRING RECESS BUT DEMOCRATS STILL COULD FACE PROBLEMS WITH THEIR MORE CONSERVATIVE MEMBERS IN THE SENATE AMONG THEM IS SEN BOB KRUEGER WHO WAS APPOINTED TO THE TEXAS SENATE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN AND WHO FACES THE VOTERS IN A MAY SPECIAL ELECTION I DON'T WANT TO DEEPEN THE DEFICIT UNTIL WE'VE GOT A BETTER HANDLE ON THE SPENDING THAN WE DO AT THIS TIME SAYS MR KRUEGER WHO ADDS THAT DELAYING THE STIMULUS UNTIL AFTER APPROVING SPENDING CUTS MIGHT BE A BETTER WAY TO GO THE WHITE HOUSE APPEARS TO BE LISTENING THOUGH STILL COMMITTED TO THE STIMULUS BILL THE ADMINISTRATION YESTERDAY SIGNALED THAT IT WOULD ACCEPT A STRATEGY OF MOVING ON A BUDGET RESOLUTION BEFORE TAKING UP THE STIMULUS BILL HOUSE AND SENATE DEMOCRATIC LEADERS ARE SCHEDULED TO MEET TODAY REGARDING THE LEGISLATIVE AGENDA NO FINAL DECISIONS HAVE BEEN MADE BUT THE LEADERS HOPE THE BUDGET COMMITTEES MOVE QUICKLY TO TAKE ADVANTAGE OF THE MOMENTUM GENERATED BY MR CLINTON'S ECONOMIC SPEECH AND SUBSEQUENT TRAVELS THE WHITE HOUSE'S GOAL IS TO COMPLETE BOTH THE STIMULUS BILL AND BUDGET BY MIDAPRIL DELAYING THE SPENDING BILL TOO LONG AFTER THIS POINT WOULD STRAIN THE FUNDS AVAILABLE TO PAY UNEMPLOYMENT BENEFITS AND ALSO WOULD JEOPARDIZE SUMMERJOB AND EDUCATION PROGRAMS PROMISED BY THE ADMINISTRATION THE PRESIDENT CAN'T ASSUME THE ROCKSOLID SUPPORT FROM HIS PARTY THAT RONALD REAGAN'S ECONOMIC PACKAGE RECEIVED FROM REPUBLICANS SWEPT INTO OFFICE IN HIS 1980 LANDSLIDE CALIFORNIA DEMOCRATIC REP JANE HARMAN REFLECTS THIS UNDERLYING FISCAL CONSERVATISM AMONG FIRSTTERM MEMBERS SHE SUPPORTS THE STIMULUS BILL WHICH INCLUDES ECONOMIC CONVERSION FUNDS IMPORTANT TO THE BATTERED DEFENSE INDUSTRY IN HER DISTRICT BUT AFTER SPENDING THE WEEKEND WITH HER SOUTHERN CALIFORNIA CONSTITUENTS SHE SAYS I'D PREFER TO SEE REAL EVIDENCE THAT THE CUTS WILL PASS AS SOON AS POSSIBLE THE PUBLIC IS DEMANDING IT THE FRESHMEN ARE HARDLY ALONE IN THEIR RESERVATIONS MY REAL PREFERENCE WOULD BE TO PUT THE WHOLE PROGRAM IN A SINGLE PACKAGE' SAYS REP LEE HAMILTON OF INDIANA WHO WAS ELECTED AS PART OF LYNDON JOHNSON'S GREAT SOCIETY LANDSLIDE IN 1964 AND IS NOW A MEMBER OF THE JOINT ECONOMIC COMMITTEE IT MAKES ME VERY UNEASY TO VOTE FOR THE STIMULUS PACKAGE AND DEFER THE VOTE ON THE DEFICIT REDUCTION PORTION THE HOUSE COULD VOTE AS EARLY AS TOMORROW ON AUTHORIZING EXTENDED UNEMPLOYMENT BENEFITS AS REQUESTED BY THE PRESIDENT THE STIMULUS LEGISLATION WHICH IS CURRENTLY BEFORE THE HOUSE APPROPRIATIONS COMMITTEE HAD BEEN SCHEDULED TO REACH THE FLOOR NEXT WEEK DEMOCRATS ARE RELUCTANT TO CROSS THE PRESIDENT AT THIS JUNCTURE BUT BY THE SAME TOKEN THE LEADERSHIP WANTS TO AVOID ANY SIGN OF DISUNITY OR THE RISK OF AN AMBUSH BY REPUBLICANS THOSE CONCERNS COULD SLOW ACTION ON THE PACKAGE THE PRESSURE WITHIN THE HOUSE DOVETAILS WITH SENATE CONCERNS THAT WAITING ON THE BUDGET RESOLUTION WILL ONLY PROVIDE TIME FOR CRITICS TO PICK APART THE PACKAGE HOUSE AND SENATE LEADERS ARE EXPECTED TO MEET TODAY TO DISCUSS THE LEGISLATIVE AGENDA AND THOUGH NO FINAL DECISIONS HAVE BEEN MADE IT APPEARS INCREASINGLY LIKELY THAT BOTH HOUSES COULD MOVE ON THE BUDGET BEFORE THE ADMINISTRATION HAS SENT UP FINAL DETAILS ON MARCH 23 THE SKEPTICISM ABOUT SPENDING AMONG DEMOCRATIC FRESHMEN REPRESENTS ONE OF THE AFTERSHOCKS OF A 1992 CAMPAIGN INFLUENCED BY ROSS PEROT'S ANTIDEFICIT RHETORIC INDEED IT IS POSSIBLE THAT THE ELECTION HAS TURNED CONVENTIONAL WISDOM THAT CONGRESS WOULD EAGERLY APPROVE SPENDING BUT SLOUGH OFF BUDGET CUTS ON ITS HEAD THE WHITE HOUSE MINDFUL OF ITS SLIM MARGIN FOR ERROR ALREADY IS COURTING THE DEMOCRATIC FRESHMEN DEPUTY TREASURY SECRETARY ROGER ALTMAN MET WITH THE GROUP LAST WEEK BEFORE MR CLINTON LAID OUT HIS PLAN VICE PRESIDENT AL GORE IN HIS INITIAL CAMPAIGNSTYLE FORAY TO BUILD PUBLIC SUPPORT FOR THE PACKAGE TRAVELED TO NORTH CAROLINA WITH REP EVA CLAYTON PRESIDENT OF THE CLASS OF DEMOCRATIC NEWCOMERS THE DEMOCRATIC FRESHMEN WHO HAVE EXPRESSED THE DESIRE TO FORGE A DISTINCTIVE IDENTITY AS AGENTS OF POLITICAL CHANGE ARE SCHEDULED TO MEET THIS AFTERNOON TO CONSIDER THE CLINTON PACKAGE BUT REACHING CONSENSUS MAY BE DIFFICULT THE 1992 ELECTION SENT TO WASHINGTON RECORD NUMBERS OF BLACKS AND HISPANICS MANY OF THEM REPRESENTING ECONOMICALLY HARDPRESSED DISTRICTS BUT THE SAME REAPPORTIONMENT PROCESS THAT HELPED ELECT THEM LEFT OTHER DEMOCRATS IN DISTRICTS DOMINATED BY SUBURBAN WHITES MUCH MORE SKEPTICAL ABOUT NEW SPENDING 9302230096 930223 CHIOFARO A DEVELOPER SETTLES FINANCING FIGHT OVER BOSTON BUILDING BOSTON REAL ESTATE DEVELOPER DONALD CHIOFARO SAID A LEGAL DISPUTE THAT THREATENED TO UNDERMINE FINANCING FOR BOSTON'S TWO INTERNATIONAL PLACE OFFICE BUILDING HAS BEEN SETTLED THE DISPUTE BEGAN IN OCTOBER WHEN THE TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA A NEW YORK PENSION FUND SUED THE BUILDING'S DEVELOPER FORT HILL SQUARE PHASE 2 ASSOCIATES WHOSE GENERAL PARTNER IS MR CHIOFARO TEACHERS IS PART OF THE 109 BILLION TIAA/CREF PENSION FUND THE SUIT CLAIMED THAT THE CURRENT VALUE OF THE 35STORY INTERNATIONAL PLACE BUILDING WAS TENS OF MILLION OF DOLLARS BELOW THE LOAN OF AS MUCH AS 300 MILLION THAT TEACHERS HAD AGREED TO GIVE FORT HILL TEACHERS' SUIT CLAIMED THAT FORT HILL WAS RENDERED INSOLVENT BY THE DECREASED VALUE OF THE BUILDING AND THUS IT COULD REFUSE TO FUND AN INITIAL 217 MILLION PORTION OF THE CREDIT THAT THE DEVELOPER PLANNED TO USE FOR PAYING OFF CONSTRUCTION LOANS FROM A GROUP OF BANKS LED BY BANK OF BOSTON CORP TERMS OF THE SETTLEMENT CALL FOR TEACHERS TO FUND 258 MILLION IN LOANS FOR THE PROJECT MR CHIOFARO SAID IN A NEWS RELEASE TEACHERS ALREADY HAS FUNDED 192 MILLION OF LOANS WHICH WERE USED TO PAY OFF A CONSTRUCTION LOAN TO BANK OF BOSTON AND A CONSORTIUM OF 10 OTHER BANKS HE ADDED UNDER THE SETTLEMENT THE LOAN REPAYMENT PERIOD WILL BE 30 YEARS COMPARED WITH 35 YEARS IN THE ORIGINAL LOAN PACT HE SAID MR CHIOFARO SAID LEASE COMMITMENTS HAVE BEEN SIGNED FOR ABOUT 60 OF TWO INTERNATIONAL PLACE 9302230095 930223 YOGURT MAKERS SWEETTALK THE YOUNG SET BY KATHLEEN DEVENY CALL IT THE GRANOLABAR SYNDROME TAKE A BASICALLY HEALTHFUL FOOD THEN ADD SUGAR TO SWEETEN ITS APPEAL THAT'S EXACTLY WHAT IS HAPPENING TO REFRIGERATED YOGURTS THE DAIRY PRODUCT IS A POPULAR FIRST FOOD FOR THE TINIEST TOTS BUT MARKETERS SAY KIDS OVER THE AGE OF FOUR OFTEN TURN UP THEIR NOSES AT YOGURT TO KEEP THE 14 BILLION CATEGORY GROWING AT ITS CURRENT ANNUAL 126 CLIP THE NATION'S THREE LARGEST YOGURT MAKERS ARE SPINNING OUT NEW PRODUCTS AIMED AT KIDS IN SUCH FLAVORS AS TROPICAL PUNCH STRAWBERRY BANANA BASH AND RASPBERRY RAINBOW THE IDEA IS THAT YOGURT'S HEALTHY REPUTATION WILL APPEAL TO PARENTS WHILE THE NEW VARIETIES WILL ATTRACT THE LUNCHBOX SET WITH SWEETER STRONGER FLAVORS AND BRIGHTER COLORS MARKETERS SAY MOST KIDS ALSO GO FOR THICK CREAMY MIXTURES AND HATE TO FIND PIECES OF FRUIT IN THEIR YOGURT KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS KICKED OFF THE TREND LAST YEAR WHEN IT INTRODUCED LIGHT N' LIVELY KID PACK THE PRODUCTS ARE PACKED IN NEON PINK ORANGE AND GREEN AND HAVE TWO FLAVORS IN EACH SIXPACK GENERAL MILLS INC HAS ROLLED OUT YOPLAIT TRIX LOWFAT YOGURT TRIX FEATURES TWO COLORED LAYERS WITH A DOLLOP OF A THIRD COLOR ON TOP NOT TO BE OUTDONE BSN GROUPE'S DANNON CO THE YOGURTCATEGORY LEADER LAUNCHED SPRINKL'INS A CUP OF FRUITFLAVORED YOGURT THAT COMES WITH A PACKET OF RAINBOWCOLORED SUGAR SPRINKLES ATTACHED TO THE TOP THE IDEA ACCORDING TO DANNON IS TO KEEP THE SPRINKLES FROM MELTING INTO THE YOGURT AND ALSO TO ENCOURAGE KIDS TO PLAY WITH THEIR FOOD NOT EVERYONE IS HAPPY ABOUT DANNON'S INNOVATION I FEEL THERE ARE BETTER WAYS TO GET YOGURT INTO KIDS THAN PUMPING IT UP WITH SUGAR SAYS JAYNE HURLEY AN ASSOCIATE NUTRITIONIST AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A CONSUMERADVOCACY GROUP MS HURLEY SAYS ARTIFICIAL COLORS ARE ALSO A CONCERN DANNON EXECUTIVES SHRUG OFF SUCH CRITICISM SPRINKL'INS CONTAINS TWO GRAMS OF FAT PER 41OUNCE SERVING ABOUT THE SAME AS DANNON'S REGULAR LOWFAT YOGURT AND THE CANDY SPRINKLES ADD ONLY ABOUT 10 CALORIES OF SUGAR SAYS BOB WALLACH VICE PRESIDENT OF MARKETING FOR DANNON IT'S LESS THAN A TEASPOON HE SAYS DANNON HAD A SLIGHT LEAD IN THE KID CATEGORY DURING THE 13 WEEKS ENDED DEC 27 WITH SUPERMARKET SALES OF 43 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE YOPLAIT TRIX MEANWHILE RANG UP SALES OF 41 MILLION AND LIGHT N' LIVELY KID PACK WHICH IS AVAILABLE ONLY IN STATES EAST OF THE MISSISSIPPI RIVER TRAILED WITH SALES OF 22 MILLION SAYS A PLEASED MR WALLACH IF WE CAN GET THEM AT THIS AGE WE'RE MORE LIKELY TO HOLD THEM FOR LIFE 9302230094 930223 NEOPROBE POSTS LOSS OF 3 MILLION FOR 1992 CITES RESEARCH PROJECTS COLUMBUS OHIO NEOPROBE CORP ENGAGED IN COSTLY RESEARCH PROJECTS HAD A LOSS OF 3 MILLION OR 40 CENTS A SHARE IN 1992 PRESIDENT DAVID BUPP SAID IN 1991 THE HEALTHCARE CONCERN HAD A LOSS OF 3 MILLION OR 48 CENTS A SHARE PERSHARE RESULTS FOR THE YEAR ENDED DEC 31 1992 WERE CALCULATED USING 65 MILLION SHARES OUTSTANDING WHILE THE 1991 FIGURE WAS CALCULATED USING 62 MILLION SHARES LOSSES ARE EXPECTED INTO THE FIRST QUARTER AND FOR MUCH OF THE YEAR FOR THE FIRST QUARTER MR BUPP SAID THE COMPANY EXPECTS A LOSS OF 13 MILLION OR 18 CENTS TO 20 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY HAD A LOSS OF 300000 OR FIVE CENTS A SHARE MR BUPP ATTRIBUTED THE EXPECTED WIDER LOSS TO EXPANDED CLINICAL RESEARCH FOR 1993 NEOPROBE EXPECTS A LOSS OF 65 MILLION OR 90 CENTS TO 1 A SHARE THE COMPANY REACHED WHAT HE TERMED A SIGNIFICANT MILESTONE WITH THE FEB 16 FOOD AND DRUG ADMINISTRATION'S APPROVAL OF NEOPROBE'S REQUEST TO BEGIN PHASE THREE CLINICAL TRIALS OF ITS COLONCANCER TREATMENT SYSTEM THE COMPANY EXPECTS TO APPLY FOR A PRODUCT LICENSE POSSIBLY NEXT YEAR AND WOULD THEN HAVE TO WAIT 18 MONTHS FOR THE FDA'S DECISION IF NEOPROBE'S PRODUCT WHICH MAKES COLON CANCER DETECTION EASIER DURING SURGERY IS APPROVED THE COMPANY SHOULD SHOW AN OPERATING PROFIT IN 1996 HE SAID 9302230093 930223 BUSINESS BRIEFS CONAGRA INC ACQUIRED UNITED PLASTIC FILMS INC FOR ABOUT 820000 SHARES OF COMMON STOCK WITH A VALUE OF ABOUT 214 MILLION AT CURRENT MARKET PRICES ENDOSONICS CORP RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO HAVE 30 CLINICAL TRIAL SITES FOR ITS ELECTRONIC CATHETER PRODUCT MARTIN MARIETTA CORP'S INFORMATION SYSTEMS UNIT GOT A FIVEYEAR 31 MILLION CONTRACT FROM INFONET SERVICES CORP TO PROVIDE COMPUTER SERVICES FOR THE US GOVERNMENT UNISYS CORP RECEIVED AN ORDER FROM NATWEST LIFE FOR A 6 MILLION COMPUTER SYSTEM TO HELP MANAGE ITS INSURANCE OPERATIONS NATWEST LIFE IS A JOINT VENTURE OF NATIONAL WESTMINSTER BANK AND THE CLERICAL MEDICAL INVESTMENT GROUP ILLINOIS TOOL WORKS INC INTENDS TO ACQUIRE MILLER GROUP LTD TERMS WEREN'T DISCLOSED EPITOPE INC WILL MANUFACTURE AND DISTRIBUTE ITS AIDS VIRUS TESTS IN CHINA THROUGH A JOINT VENTURE WITH CHINA NATIONAL BIOLOGICAL PRODUCTS CORP 9302230092 930223 LAW LEGAL BEAT BATTLE OVER INTEGRATED RESOURCES IS SET FOR COURT HEARING THURSDAY BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS HAVE PUT MILLIONS OF DOLLARS ON THE LINE IN THE INTEGRATED RESOURCES INC BANKRUPTCYCOURT FIGHT WHICH COULD COME TO A HEAD THIS WEEK INTEGRATED A ONCEHIGHFLYING REAL ESTATE MANAGEMENT CONCERN HAS BEEN UNDER BANKRUPTCYCOURT PROTECTION SINCE FEBRUARY 1990 LAST MONTH LAWYERS FOR MANAGEMENT FILED A REORGANIZATION PLAN WITH THE COURT THAT THEY SAID WOULD GIVE INTEGRATED'S SENIOR CREDITORS BETWEEN 56 AND 59 CENTS ON THE DOLLAR FOR THE 11 BILLION IN DEBT THAT WAS GOOD NEWS FOR THE ARBITRAGERS AND OTHER INVESTORS WHO HAVE CREATED A LIVELY MARKET IN THE SENIOR DEBT WHICH TRADES IN LOTS STARTING AT 50000 IN FACE VALUE AFTER THE MANAGEMENT PLAN WAS FILED THE PRICE OF THE DEBT SHOT UP TO MORE THAN 50 CENTS ON THE DOLLAR FROM AROUND 42 CENTS THAT WAS NO SURPRISE TRADERS SAY BASED ON MANAGEMENT'S NUMBERS IT WAS A CHANCE TO MAKE A FABULOUS RETURN BUT LAST WEEK THOSE INVESTORS LEARNED THAT THE MANAGEMENT PLAN WAS HARDLY A SURE THING STEINHARDT MANAGEMENT CO A MONEY MANAGEMENT FIRM UNVEILED A COMPETING REORGANIZATION PLAN UNDER WHICH SENIOR DEBTORS WOULD GET ONLY 46 CENTS TO 48 CENTS ON THE DOLLAR STEINHARDT GARNERED THE SUPPORT OF JUNIOR DEBTORS WHO WOULD GET NOTHING UNDER THE MANAGEMENT PLAN BUT THREE CENTS ON THE DOLLAR WITH STEINHARDT JUNIOR DEBTORS' RIGHT TO MONEY IN BANKRUPTCY IS SUBORDINATED TO THE SENIOR DEBTORS FOR CONTRACTUAL AND OTHER REASONS IN THIS CASE THEIR HOLDINGS ARE CHIEFLY JUNK BONDS STEINHARDT ALSO FORGED AN ODDCOUPLE ALLIANCE WITH A PLAINTIFFS' LAW FIRM BY AGREEING TO PAY FOR A SETTLEMENT WITH LIMITED PARTNERS IN INTEGRATED'S REAL ESTATE SUBSIDIARIES WHO ARE SUING THE PARENT FOR FRAUD THE LAWYER REPRESENTING THE LIMITED PARTNERS HERB BEIGEL OF THE CHICAGO FIRM BEIGEL & SANDLER HAS DONE HIS PART IN THE LEGAL WAR BY FILING A FLANKING ACTION IN LOS ANGELES COUNTY SUPERIOR COURT SEEKING AN INJUNCTION TO BLOCK MANAGEMENT'S PLAN STEINHARDT IN EXCHANGE FOR A TOTAL CONTRIBUTION TO THE REORGANIZATION OF AT LEAST 250 MILLION WOULD GET INTEGRATED'S MOST VALUABLE ASSETS ACCORDING TO COURT PAPERS STEINHARDT HAS SPENT AT LEAST 5 MILLION ON LEGAL FEES AND OTHER EXPENSES FOR A CHANCE TO GET HOLD OF THOSE ASSETS WHICH INCLUDE REAL ESTATE CONTRACTS WITH HIGHQUALITY TENANTS SUCH AS XEROX CORP AND SEARS ROEBUCK & CO AT SITES AROUND THE COUNTRY NOW THE PRICE OF INTEGRATED'S SENIOR DEBT HAS DROPPED TO AROUND 48 CENTS ON THE DOLLAR THAT'S NOT MUCH OF A SPREAD FOR ARBITRAGERS IF THE STEINHARDT PLAN GOES FORWARD BUT IT WILL REPRESENT A HUGE GAIN IF THE MANAGEMENT PLAN PREVAILS AND TURNS OUT TO BE WORTH AS MUCH AS ITS PROPONENTS SAY IT IS THE BATTLE BETWEEN THE COMPETING PLANS REACHES COURT ON THURSDAY WHEN US BANKRUPTCY JUDGE CORNELIUS BLACKSHEAR IN MANHATTAN IS SCHEDULED TO HEAR ARGUMENTS OVER WHETHER TO ALLOW STEINHARDT TO PUT ITS PLAN INTO CONTENTION IT ISN'T KNOWN WHETHER JUDGE BLACKSHEAR WILL RULE FROM THE BENCH OR TAKE MORE TIME TO CONSIDER THE ISSUES FRANK GELLER CHIEF EXECUTIVE OFFICER OF INTEGRATED CHARGES THAT STEINHARDT PARTNER CHARLES DAVIDSON WHO'S HEADING THE STEINHARDT BID IS TRYING TO GET THE REAL ESTATE ASSETS ON THE CHEAP MR GELLER SAYS MANAGEMENT'S PLAN WHICH INVOLVES SELLING THE ASSETS IS COMPLETELY WORKABLE UNDER THAT PLAN THE SENIOR DEBT HOLDERS WILL GET ABOUT 39 CENTS ON THE DOLLAR UP FRONT ABOUT SEVEN CENTS LESS THAN STEINHARDT IS OFFERING AND THEN CERTIFICATES WHICH THEY CAN TRADE ENTITLING THEM TO PROFITS FROM THE ASSET SALES MR GELLER ALSO SAYS MR DAVIDSON IS GIVING AWAY TOO MUCH TO SETTLE THE LAWSUITS OF THE LIMITED PARTNERS REPRESENTED BY MR BEIGEL MR DAVIDSON SAYS MANAGEMENT'S BID WON'T WORK AND LAWYERS SUPPORTING THE STEINHARDT PLAN ARGUE IN COURT PAPERS THAT THE MANAGEMENT PROPOSAL IS PURE FANTASY AND CAN'T REALIZE THE GAINS IT PROMISES THE SENIOR DEBTORS WHAT ULTIMATELY HAPPENS WILL PROBABLY BE UP TO THE HOLDERS OF THE SENIOR DEBT WHO HAVE TO APPROVE ANY PLAN WE'RE STILL NEGOTIATING OVER THE VARIOUS OFFERS SAYS KENNETH ECKSTEIN A LAWYER REPRESENTING ONE OF TWO SENIOR DEBT COMMITTEES BUT JEFFREY GREENBLATT A GENERAL PARTNER OF BAKER NYE INVESTMENTS WHICH HAS INVESTED IN THE SENIOR DEBT SAYS THAT HE VIEWS THE STEINHARDT PROPOSAL AS TOO LOW COMPARED WITH WHAT MANAGEMENT HAS OFFERED WESTERN BUSINESSES THAT SIGN PRELIMINARY AGREEMENTS IN RUSSIA COULD BE IN FOR A SURPRISE DUE TO A NEW RUSSIAN LAW UNDER THE 1992 LEGISLATION SAYS WILLIAM BUTLER OF THE INTERNATIONAL LAW FIRM CLIFFORD CHANCE PRELIMINARY AGREEMENTS COULD BE BINDING UNDER RUSSIAN LAW EVEN IF THEY HINGE ON UNILATERAL CONDITIONS SUCH AS OBTAINING BOARD APPROVAL OR ARRANGING PROPER FINANCING IN THE US PRELIMINARY AGREEMENTS AREN'T ORDINARILY BINDING WHEN SOME OF THE CONTRACT TERMS ARE STILL OPEN TO NEGOTIATION AND A FINAL CONTRACT DOCUMENT IS CONTEMPLATED BEFORE A TRANSACTION CAN BE COMPLETED BUT EVEN IN THE US SUCH PACTS CAN CAUSE PROBLEMS IF THE PARTIES' INTENT ISN'T STATED EXPLICITLY THE RUSSIAN LEGISLATION IS VERY POORLY DRAFTED IT'S FULL OF VAGUE TERMS SAID MR BUTLER AN EXPERT ON LAWS OF THE COMMONWEALTH OF INDEPENDENT STATES AND LECTURER AT UNIVERSITY COLLEGE LONDON FOREIGN INVESTORS HE ADVISED SHOULD CAREFULLY CONSIDER WHETHER TO ENTER INTO A PRELIMINARY CONTRACT UNLESS IT APPEARS A FINAL ACCORD IS IN SIGHT IF A PRELIMINARY AGREEMENT IS NECESSARY THE PARTIES MIGHT EXPRESSLY STATE THAT THE PACT IS NONBINDING AND NOT INTENDED TO BE OTHERWISE FOR EXTRA INSURANCE THEY MIGHT STATE THAT THE AGREEMENT IS TO BE GIVEN THE SAME NONBINDING EFFECT IT WOULD HAVE IN SOME OTHER SPECIFIED COUNTRY CLIFFORD MOTION AS EXPECTED CLARK CLIFFORD ASKED A STATE JUDGE TO SEPARATE HIS CRIMINAL CASE FROM THAT OF ROBERT ALTMAN MR CLIFFORD AN ADVISER TO FIVE PRESIDENTS AND A PROMINENT WASHINGTON LAWYER SAID HE NEEDS TO PUT OFF HIS TRIAL TO HAVE HEART SURGERY NEXT MONTH THE STATE CRIMINAL TRIAL OF MR ALTMAN WHO WAS A LAW PARTNER WITH MR CLIFFORD IS EXPECTED TO BEGIN MARCH 15 MESSRS CLIFFORD AND ALTMAN FACE STATE AND FEDERAL INDICTMENTS ACCUSING THEM OF HELPING BCCI HOLDINGS LUXEMBOURG SA SECRETLY CONTROL FIRST AMERICAN BANKSHARES INC WHO'S NEWS HAROLD D JONES THE US TRUSTEE IN CHARGE OF ADMINISTERING BANKRUPTCY CASES IN NEW YORK CONNECTICUT AND VERMONT IS JOINING PRYOR CASHMAN SHERMAN & FLYNN EFFECTIVE MARCH 8 MR JONES WILL BECOME COHEAD OF THE NEW YORK FIRM'S BANKRUPTCY DEPARTMENT ALONG WITH ANGELA TESEMILNER CARLA J BISHOP FORMER INHOUSE COUNSEL FOR MARATHON OIL CO JOINED THE HOUSTONBASED LAW FIRM OF NORTON & BLAIR AS A PARTNER SPECIALIZING IN COMPLEX AND COMMERCIAL LITIGATION CHARLES GOLDSMITH CONTRIBUTED TO THIS ARTICLE 9302230091 930223 TREASURY STUDIES PROPOSAL TO CURB EXECUTIVES' PAY BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY APPARENTLY CONSIDERED AND BACKED OFF A PLAN TO ALLOW COMPANIES TO CONTINUE DEDUCTING COMPENSATION OF MORE THAN 1 MILLION A YEAR TO THEIR EXECUTIVES IF SHAREHOLDERS APPROVED PRESIDENT CLINTON HAS PROPOSED TO PREVENT A CORPORATION FROM DEDUCTING MORE THAN 1 MILLION OF COMPENSATION PAID TO AN EXECUTIVE ANNUALLY ONE EXCEPTION TO THIS WOULD BE IF THE COMPENSATION WERE SOMEHOW TIED TO THE EXECUTIVE'S PERFORMANCE AND PRODUCTIVITY ACCORDING TO A FEB 18 DOCUMENT OBTAINED BY THE WALL STREET JOURNAL THE TREASURY ALSO WAS EXAMINING A PLAN THAT WOULD HAVE ALLOWED THE SOCALLED EXCESSIVE COMPENSATION TO BE FULLY DEDUCTIBLE IF SHAREHOLDERS WERE INFORMED ABOUT THE PAYMENTS AND THE TERMS OF PAYMENTS WERE APPROVED BY A SEPARATE VOTE OF THE SHAREHOLDERS IF ENACTED THE PROVISION WOULD HAVE PROMPTED ACTION IN AN AREA THAT TRADITIONALLY HAS BEEN OUTSIDE THE PURVIEW OF SHAREHOLDERS BUT A DOCUMENT DATED THE NEXT DAY FEB 19 DOESN'T INCLUDE THE SHAREHOLDERS' PROVISION IT SAID HOWEVER THAT THE TREASURY IS CONSIDERING OTHER EXCEPTIONS REFERRING TO THE PRODUCTIVITY CLAUSE THE DOCUMENT STATED THE TREASURY IS REVIEWING APPROPRIATE STANDARDS REGARDING THIS EXCEPTION A TREASURY SPOKESMAN JACK DEVORE DECLINED TO GIVE THE STATUS OF THE PROVISION HE CALLED BOTH DOCUMENTS MEANINGLESS AND ADDED THERE'S NO FINAL PRODUCT YET A FINAL VERSION COULD BE OUT AS EARLY AS MIDWEEK THE LATER DOCUMENT STATES THAT THE PROVISION WOULD BE EFFECTIVE ON OR AFTER JAN 1 1994 AND BOTH DOCUMENTS STATE THAT CERTAIN OTHER PAYMENTS WOULD BE EXCLUDED FROM THE DEDUCTION LIMITATION THESE WOULD INCLUDE PAYMENTS MADE TO A TAXDEFERRED RETIREMENT PLAN AND CERTAIN FRINGE BENEFITS THE TREASURY DOCUMENT A MORE DETAILED VERSION OF TAX PROPOSALS THE ADMINISTRATION OUTLINED LAST WEEK ALSO SUGGESTS THAT THE TREASURY MAY SUBSTANTIALLY RESTRICT THE TYPE OF INVESTMENTS THAT ARE ELIGIBLE FOR ITS SMALLBUSINESS CAPITALGAINS TAX BREAK AS REPORTED INVESTORS WHO BUY NEWLY ISSUED STOCK IN ELIGIBLE SMALL BUSINESSES AND HOLD IT FOR FIVE YEARS WOULD PAY TAX ON ONLY HALF OF ANY PROFIT THE DOCUMENT SAYS THAT QUALIFIED BUSINESSES WON'T INCLUDE BANKING LEASING REAL ESTATE FARMING AND MINERAL EXTRACTION THE FEB 19 DRAFT LISTS TWO OTHER IMPORTANT EXCLUSIONS THE HUGE SERVICE AND HOSPITALITY INDUSTRIES BUT QUESTION MARKS IN THE TEXT SUGGEST THAT THOSE EXCLUSIONS MAY NOT SHOW UP IN THE FINAL VERSION PROFITS ELIGIBLE FOR EXCLUSION WOULD BE LIMITED TO THE GREATER OF 10 TIMES THE ORIGINAL INVESTMENT OR 1 MILLION THE DOCUMENT SAYS THE PROPOSAL INCLUDES SAFEGUARDS TO PREVENT LARGE CORPORATIONS FROM SECURING THE EXCLUSION FROM THEIR SHAREHOLDERS BY SPINNING OFF NEW SUBSIDIARIES TO PREVENT EXISTING SMALL CORPORATIONS FROM REDEEMING OUTSTANDING SHARES IN HOPES OF REISSUING QUALIFIED SMALLBUSINESS STOCK AND TO OTHERWISE RESTRICT INVESTORS' ABILITY TO USE THE NEW TAX BREAK FOR PURPOSES OTHER THAN INTENDED THE DOCUMENT SAYS 9302230090 930223 PNC OHIO BANCORP AGREE TO TERMINATE THEIR MERGER PACT BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PNC BANK CORP AND OHIO BANCORP AGREED TO CANCEL AN ACCORD UNDER WHICH PNC WAS TO ACQUIRE THE SMALLER BANK FOLLOWING THE ANNOUNCEMENT THE STOCK OF YOUNGSTOWNBASED OHIO BANCORP PLUNGED ALMOST 18 LATE YESTERDAY OHIO BANCORP CITING DISMAL RESULTS IN 1992 SAID IT WILL MAKE FUTURE DIVIDEND PAYMENTS ONLY WITH PRIOR CLEARANCE FROM THE FEDERAL RESERVE BOARD THE BANK ALSO DISCLOSED IT MAY BE ASSESSED REGULATORY PENALTIES AS THE RESULT OF ALLEGED VIOLATIONS OF THE BANK SECRECY ACT REGULATORS ARE QUESTIONING WHETHER OHIO BANCORP FAILED TO NOTIFY THEM WHEN RECEIVING LARGE DEPOSITS EXCEEDING A CERTAIN THRESHOLD THE OHIO BANCORP SPOKESMAN SAID HE DECLINED TO ELABORATE SPOKESMEN FOR OHIO BANCORP AND PITTSBURGHBASED PNC DECLINED TO ELABORATE ON WHY THE MERGER WAS CANCELED SEPARATELY OHIO BANCORP SAID IT WILL MAKE FUTURE DIVIDEND PAYMENTS ONLY WITH PRIOR REGULATORY CLEARANCE AND DISCLOSED IT MAY BE ASSESSED REGULATORY PENALTIES AS THE RESULT OF ALLEGED VIOLATIONS OF THE BANK SECRECY ACT NO DETAILS WERE GIVEN YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING OHIO BANCORP'S COMMON STOCK CLOSED AT 21 DOWN 450 FROM FRIDAY'S CLOSE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PNC COMMON CLOSED AT 31625 UP 1125 FROM FRIDAY'S CLOSE OHIO BANCORP SAID IT IS ENGAGED IN PRELIMINARY TALKS WITH OTHER POTENTIAL BUYERS THE BANK WHICH HAS 17 BILLION IN ASSETS ESSENTIALLY PUT ITSELF UP FOR SALE LAST NOVEMBER WHEN IT ANNOUNCED IT WOULD ENTERTAIN OFFERS THAT ANNOUNCEMENT FOLLOWED THE BANK'S DISCLOSURE OF LOAN LOSSES RELATING TO THE CHAPTER 11 BANKRUPTCYLAW FILING OF YOUNGSTOWNBASED PHARMOR INC OHIO BANCORP NOW HAS TO SEEK BUYERS AND MAY HAVE TO SETTLE FOR A LESSTHANIDEAL PRICE ANALYSTS SAID OHIO BANCORP RECEIVED MORE THAN ONE OFFER WHEN IT ANNOUNCED IT SOUGHT SUITORS LAST NOVEMBER THE BANK SPOKESMAN SAID DECLINING TO NAME THE BANKS THAT MADE BIDS ANALYSTS BELIEVE SOCIETY CORP AND NATIONAL CITY CORP BOTH OF CLEVELAND MAY HAVE BEEN INTERESTED IN ACQUIRING OHIO BANCORP AND STILL MAY HOLD SUCH AN INTEREST SPOKESMEN FOR SOCIETY AND NATIONAL CITY DECLINED TO COMMENT A SIGN THE PNC AGREEMENT WHICH HAD AN INDICATED VALUE OF 250 MILLION WAS IN TROUBLE CAME EARLIER THIS MONTH WHEN AT THE ACQUIRING BANK'S REQUEST OHIO BANCORP EXTENDED TO FEB 26 THE DUEDILIGENCE PERIOD FOR PNC TO SCRUTINIZE OHIO BANCORP'S BOOKS PNC HAS ASSETS OF 466 BILLION OHIO BANCORP HAD A 1992 LOSS OF 20 MILLION IN THE FOURTH QUARTER IT POSTED A LOSS OF 72 MILLION AND CHARGED OFF 171 MILLION IN NONPERFORMING LOANS PRIMARILY RELATING TO PHARMOR THAT FOLLOWED A THIRDQUARTER LOSS OF 113 MILLION AFTER A SPECIAL 29 MILLION PROVISION RELATED TO PHARMOR IN RECENT MONTHS FIVE OFFICERS HAVE UNEXPECTEDLY LEFT OHIO BANCORP THE BANK HAS DECLINED TO DISCUSS THE DEPARTURES 9302230089 930223 TECHNOLOGY BRIEF TOSHIBA CORP NEW LOWCOST NOTEBOOK PC TO BE UNVEILED ON MARCH 1 TOSHIBA CORP SAID IT WILL INTRODUCE A LOWCOST NOTEBOOKSTYLE PERSONAL COMPUTER ON MARCH 1 AMID AN ESCALATING PRICE WAR IN THE JAPANESE MARKET THE COMPANY SAID THE PC AN ADDITION TO ITS DYNABOOK LINEUP WILL BE BASED ON INTEL CORP'S 486 MICROPROCESSOR THE PC WILL BE PRICED AT 278000 YEN 2348 AND TOSHIBA SAID IT EXPECTS SALES OF 30000 UNITS A MONTH IN THE FIRST YEAR DURING THE PAST FEW MONTHS SEVERAL FOREIGN COMPETITORS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC HAVE INTRODUCED LOWPRICED COMPUTERS IN JAPAN 9302230088 930223 TSONGAS CAMPAIGN AIDE INDICTED ON FRAUD CHARGES BOSTON NICHOLAS RIZZO THE CHIEF FUNDRAISER FOR PAUL TSONGAS'S DEMOCRATIC PRESIDENTIAL CAMPAIGN HAS BEEN INDICTED ON CHARGES HE CHEATED THE CAMPAIGN OUT OF MORE THAN 1 MILLION IN A 46COUNT INDICTMENT A FEDERAL GRAND JURY IN BOSTON ACCUSED MR RIZZO OF MAIL FRAUD MONEY LAUNDERING AND MAKING FALSE STATEMENTS TO THE FEDERAL ELECTION COMMISSION IN ADDITION HE IS ACCUSED OF FRAUDULENTLY OBTAINING 28 MILLION IN BANK LOANS THE INDICTMENT SEEKS RESTITUTION OF 39 MILLION FROM MR RIZZO US ATTORNEY A JOHN PAPPALARDO SAID THE CHARGES AGAINST MR RIZZO REPRESENT THE LARGEST CASE OF CAMPAIGN FRAUD IN HISTORY MR RIZZO A FORMER ASSISTANT TREASURER OF THE DEMOCRATIC NATIONAL COMMITTEE WHO RAISED MONEY FOR PRESIDENT CARTER AND VICE PRESIDENT MONDALE AMONG OTHERS ALLEGEDLY SOLICITED FUNDS UNDER THE GUISE OF THE CAMPAIGN THEN USED THE MONEY TO PAY OFF LEGAL AND ILLEGAL GAMBLING DEBTS TO BUY WOMEN'S CLOTHING AND TO VISIT AN ADULT ENTERTAINMENT CENTER IF CONVICTED ON ALL COUNTS HE FACES A MAXIMUM SENTENCE OF 346 YEARS IN PRISON AND A 138 MILLION FINE HIS LAWYER COULDN'T BE REACHED FOR COMMENT 9302230087 930223 FORMER FSG PRESIDENT SENTENCED TO PRISON IN MUNIBOND SCHEME LOS ANGELES A FEDERAL JUDGE SENTENCED JOAN S KANTOR TO 41 MONTHS IN PRISON AND ORDERED HER TO PAY MORE THAN 28 MILLION IN RESTITUTION FOR HER ROLE IN A MUNICIPALBOND SCHEME THAT CHEATED INVESTORS OUT OF ABOUT 39 MILLION MS KANTOR 41 YEARS OLD WAS PRESIDENT OF FSG FINANCIAL SERVICES INC A BEVERLY HILLS CALIF FIRM WHICH UNDER SEVERAL DIFFERENT NAMES LED INVESTORS TO BELIEVE THEY WERE PURCHASING TAXFREE MUNICIPAL BONDS THAT WERE ISSUED BACKED OR SANCTIONED BY SOME GOVERNMENT ENTITY IN FACT THERE WERE NO BONDS PROSECUTORS SAID SEVERAL HUNDRED INVESTORS WERE DEFRAUDED FROM 1984 TO 1991 MS KANTOR WHO PLEADED GUILTY TO TWO COUNTS OF SECURITIES FRAUD AND ONE COUNT OF FILING A FALSE INCOME TAX RETURN IS THE THIRD DEFENDANT IN THE CASE TO BE SENTENCED AND A FOURTH IS SET TO BE SENTENCED NEXT WEEK JOHN ANTHONY GENETTI WHO PROSECUTORS SAY PROFITED MOST FROM THE SCHEME WAS SENTENCED TO 135 MONTHS IN PRISON FINED 25 MILLION AND ORDERED TO PAY 28 MILLION IN RESTITUTION ASSISTANT US ATTORNEY DAVID SCHINDLER CHARACTERIZED MS KANTOR AS THE FRONT PERSON FOR THE OPERATION SHE WASN'T THE MASTERMIND BUT SHE WAS INSTRUMENTAL IN THE DAYTODAY OPERATION HE SAID ADDING THAT SHE SUPERVISED SALES REPRESENTATIVES FOR THE FICTITIOUS BONDS HE SAID SHE RECEIVED ABOUT 1 MILLION FOR HER LABORS SO FAR THE GOVERNMENT HAS SEIZED 7 MILLION IN ASSETS WHICH IT SAYS WILL BE TURNED OVER TO THE BILKED INVESTORS MS KANTOR'S ATTORNEY COULDN'T BE REACHED FOR COMMENT 9302230086 930223 STATE AND LOCAL TAXES ARE TAKING A BIGGER BITE BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS STATE AND LOCAL INCOME TAXES WERE VIEWED AS THE SMALL WAGGING TAIL ON A VERY BIG DOG FEDERAL INCOME TAXES WERE FAR AND AWAY THE BIGGEST CONCERN FOR INDIVIDUAL TAXPAYERS AS APRIL 15 ROLLED AROUND BUT LATELY THAT TAIL HAS GOTTEN BIGGER AND BIGGER AND PEOPLE HAVE BEEN SURPRISED TO FIND THAT IN SOME CASES THE TAIL MAY EVEN WAG THE DOG IT'S NOT ONLY THAT STATE TAX RATES ARE GETTING HIGHER BUT ALSO THAT STATES FIGURE THEIR TAXES DIFFERENTLY FROM UNCLE SAM WITH SOME FEDERAL DEDUCTIONS DISALLOWED AND INCOME TAXED UNDER A VARIETY OF RATES THERE COULD BE SOMEONE OUT THERE WHO COULD PAY MORE STATE TAX THAN FEDERAL TAX SAYS FRANK SCHAEFER DIRECTOR OF STATE AND LOCAL TAX SERVICES FOR GRANT THORNTON IN NEW YORK IT WOULD BE WEIRD IT WOULDN'T RESEMBLE ANYONE YOU KNOW HE SAYS BUT IT COULD HAPPEN FOR INSTANCE MR SCHAEFER SAYS CONSIDER A HYPOTHETICAL NEW JERSEYAN WITH BIG PARTNERSHIP LOSSES WHO ALSO CASHED IN SOME STOCKS FOR A VERY BIG GAIN WHILE THESE PARTICULAR LOSSES COULD BE USED TO OFFSET THE GAIN ON THE FEDERAL RETURN THE STATE RETURN DOESN'T RECOGNIZE THEM GIVEN A 7 NEW JERSEY TAX ON GROSS INCOME HE SAYS THIS PERSON COULD POSSIBLY OWE THE GARDEN STATE MORE THAN THE IRS NO WONDER MORE PEOPLE ARE TRYING TO FIGURE OUT STRATEGIES TO CUT THEIR STATES' TAX BITE SOME PEOPLE WITH LOTS OF TAXABLE INVESTMENT INCOME FIND THAT IT CAN PAY TO SHIFT SOME OF THEIR MONEY INTO MUNICIPAL BONDS SOLD BY THEIR HOME STATE OR BY LOCAL ISSUERS WITH THE STATE INCOME FROM SUCH BONDS AND FROM MUTUAL FUNDS THAT BUY THEM ARE EXEMPT FROM STATE AND LOCAL AS WELL AS FEDERAL INCOME TAXES FOR INSTATE TAXPAYERS FOR THE MOST PART THOUGH IT MAY BE EASIER TO CUT YOUR TAXES BY CHANGING YOUR LIFESTYLE BY GIVING UP A NEW YORK CITY PIED A TERRE FOR EXAMPLE THAN BY ALTERING YOUR TAX STRATEGIES ONE REASON IS THAT IN MANY STATES INCOME TAXES CLOSELY FOLLOW THE FEDERAL RETURNS AND A CHANGE IN ONE TYPICALLY MEANS A CHANGE IN THE OTHER IN MOST STATES FOR EXAMPLE A COUPLE CAN'T FILE SEPARATELY IF THEY FILED A JOINT FEDERAL RETURN STILL IN A FEW CASES THOSE WHERE ONE SPOUSE HAS VERY LARGE MEDICAL BILLS OR A LOT OF OUTOFSTATE MUNICIPAL BONDS FOR EXAMPLE COUPLES MAY FIND THAT THE BENEFIT OF FILING SEPARATELY FOR THE STATE OUTWEIGHS ANY DISADVANTAGE ON THE FEDERAL LEVEL WE AUTOMATICALLY DO IT ON THE COMPUTER TO SEE WHAT IS BETTER FOR OUR CLIENTS SAYS STUART KESSLER SENIOR PARTNER WITH GOLDSTEIN GOLUB & KESSLER NEW YORK MORE IMPORTANT PERHAPS IS THE AREA OF COMPLIANCE SINCE STATES HAVE BECOME VERY AGGRESSIVE ABOUT TRACKING DOWN TAX MONEY OWED THEM PEOPLE WHO SELL AN OUTOFSTATE VACATION HOME AT A PROFIT FOR EXAMPLE OWE MONEY IN THAT STATE AND IF THEY DON'T PAY IT'S LIKELY THAT THE STATE WILL NOT ONLY FIND THEM BUT ASSESS PENALTIES AND INTEREST THESE DAYS STATES EXCHANGE INFORMATION NOT ONLY WITH THE IRS BUT ALSO WITH EACH OTHER ANOTHER AREA WHERE STATES HAVE BECOME PARTICULARLY ENERGETIC IS RESIDENCY PEOPLE WHO HAVE MOVED OUT OF STATE BUT KEPT THEIR OLD ABODES VISITING FREQUENTLY MAY FIND THEY OWE INCOME TAXES IN TWO STATES LIKEWISE PEOPLE WHO MOVE TO ANOTHER STATE AND CASH IN THEIR PENSION PLANS MAY ALSO FIND AN UNEXPECTED STATE TAX BILL FROM THEIR FORMER HOME STATE NONETHELESS THERE IS SOME GOOD NEWS ON THE STATE TAX FRONT AFTER 1991'S BOUT OF STATE TAX INCREASES MOST TAXPAYERS WILL FIND THEIR TAX RATES HAVEN'T GONE UP IN GENERAL STATES EITHER RAISED TAXES IN 1991 OR POSTPONED THE TOUGH DECISIONS UNTIL 1993 SAYS STEVEN GOLD DIRECTOR OF THE CENTER FOR THE STUDY OF STATES AT THE STATE UNIVERSITY OF NEW YORK ALBANY FOR THAT TAXPAYERS CAN THANK THE 1992 ELECTION INDEED ONLY THREE STATES KANSAS MARYLAND AND RHODE ISLAND RAISED THEIR INCOME TAX RATES FOR 1992 ALL OF THEM BOOSTED THEIR TOP TAX RATE TAKING AIM AT THE UPPER BRACKETS THAT SAYS MR GOLD IS PART OF A NATIONAL TREND TOWARD MAKING THE AFFLUENT PAY A BIGGER SHARE OF THE INCOME TAX OTHER TAX LAW CHANGES WILL INCREASE THE AMOUNT PEOPLE PAY IN THREE STATES MONTANA IMPOSED AN ACROSSTHEBOARD SURCHARGE COLORADO AND MISSISSIPPI CHANGED DEDUCTIBILITY RULES SO THAT RESIDENTS WILL PAY MORE WILL THIS LULL IN STATE TAX ACTIVITY CONTINUE NOT LIKELY SAYS HARLEY DUNCAN EXECUTIVE DIRECTOR OF THE FEDERATION OF TAX ADMINISTRATORS I WOULD EXPECT THIS TO BE A VERY ACTIVE YEAR FOR TAX INCREASES HE SAYS FOR MANY THAT MEANS THE WAGGING TAIL WILL BE GETTING BIGGER JUST ASK THE PEOPLE IN OHIO WHERE LAWMAKERS HAVE ALREADY PASSED A TAX INCREASE THAT WILL BOOST RATES FOR 1993 SEE RELATED ARTICLE YOUR MONEY MATTERS TAXES 1993 TIMELY TIPS FOR EASING THE APRIL 15 BLUES WSJ FEB 23 1993 9302230085 930223 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BARRETT RESOURCES CORP AN OFFERING OF 1750000 COMMON SHARES VIA SALOMON BROTHERS INC AND PETRIE PARKMAN & CO GEON CO A UNIT OF BF GOODRICH CO AN INITIAL OFFERING OF 13 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO LIBERTY TECHNOLOGIES INC AN INITIAL OFFERING OF 18 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND HAMBRECHT & QUIST INC TIPHOOK FINANCE CORP AN OFFERING OF 150 MILLION OF NOTES VIA LEHMAN BROTHERS AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9302230084 930223 BUSINESS BRIEF MICHIGAN FINANCIAL CORP CHARGE TO BE TAKEN FOR COSTS OF POSTRETIREMENT BENEFITS MICHIGAN FINANCIAL CORP SAID IT WILL TAKE A NONCASH CHARGE OF 102 MILLION OR 39 CENTS A SHARE AGAINST ITS FIRSTQUARTER EARNINGS TO RECOGNIZE THE COSTS OF ITS POSTRETIREMENT BENEFITS THE COMPANY SAID THE CHARGE SHOULD REDUCE FIRSTQUARTER EARNINGS BY 117 MILLION OR 45 CENTS A SHARE THE MARQUETTE MICH BANKING CONCERN ALSO SAID ITS EMPLOYEE BENEFITS EXPENSE FOR THE YEAR WILL INCREASE BY 180000 REDUCING 1993 NET INCOME BY ABOUT 119000 OR FIVE CENTS A SHARE SEPARATELY THE COMPANY IS ALSO TAKING A CHARGE OF 146000 OR SIX CENTS A SHARE TO ADJUST FOR VARIOUS DEFERRED TAX ASSETS AND LIABILITIES UNDER ACCOUNTING RULE FASB STATEMENT NO 109 9302230083 930223 INTERNATIONAL BRIEF TNT LTD AUSTRALIAN FIRM REGISTERS FIRSTHALF OPERATING LOSS TNT LTD AN AUSTRALIABASED INTERNATIONAL TRANSPORTATION COMPANY REPORTED AN AFTERTAX OPERATING LOSS OF 745 MILLION AUSTRALIAN DOLLARS US514 MILLION FOR ITS FISCAL FIRST HALF ENDED DEC 31 WIDENING FROM A LOSS OF A511 MILLION A YEAR EARLIER BEFORE ACCOUNTING FOR TAX AND UNUSUAL ITEMS TNT HAD A PROFIT OF A383 MILLION SWINGING FROM A YEAREARLIER LOSS OF A175 MILLION IT REPORTED AN ABNORMAL LOSS OF A809 MILLION WIDENING FROM A YEAREARLIER ABNORMAL LOSS OF A121 MILLION THE LATEST ABNORMAL LOSS PRIMARILY WAS FROM LOSSES INCURRED BY GD EXPRESS WORLDWIDE A PARTLY OWNED INTERNATIONAL COURIER AND PARCELS BUSINESS AND FOREIGNEXCHANGE LOSSES AT ANSETT AUSTRALIA A DOMESTIC AIRLINE HALF OWNED BY TNT 9302230082 930223 BUSINESS BRIEF HEEKIN CAN INC HOLDERS TO MEET MARCH 19 TO DISCUSS BALL CORP PACT HEEKIN CAN INC SAID IN CINCINNATI THAT IT WILL HOLD A SPECIAL MEETING OF SHAREHOLDERS MARCH 19 TO DISCUSS A TENTATIVE AGREEMENT TO SELL THE COMPANY TO BALL CORP MUNCIE IND UNDER AN AGREEMENT REACHED IN DECEMBER BALL WILL ACQUIRE HEEKIN FOR ABOUT 891 MILLION BALL A PACKAGING AND AEROSPACE CONCERN HAS SAID THE ACQUISITION REFLECTS ITS STRATEGY TO FOCUS ITS GROWTH IN THE PACKAGING BUSINESS BALL SAID THE PURCHASE ISN'T EXPECTED TO BE DILUTIVE TO ITS PERSHARE EARNINGS HEEKIN MAKES METAL CONTAINERS AND SHEET PRODUCTS FOR THE FOOD PET FOOD AND AEROSOL CAN MARKETS IT HAD 1991 SALES OF 353 MILLION AND HAS 1500 EMPLOYEES 9302230081 930223 INTERNATIONAL BRIEF NORSK HYDRO AS FIRM POSTS PROFIT FOR 1992 AFTER DEFICIT A YEAR EARLIER NORSK HYDRO AS A NORWEGIAN AGRICULTURAL OIL GAS AND METALS CONCERN REPORTED THAT NET INCOME REBOUNDED TO 176 BILLION KRONER 252 MILLION IN 1992 AFTER A 498 MILLIONKRONE LOSS THE YEAR BEFORE BUT THE SWING IN RESULTS WAS DUE TO CERTAIN ONETIME EFFECTS AND NORSK HYDRO SAID THE TWO YEARS CAN'T BE DIRECTLY COMPARED WITHOUT CERTAIN ACCOUNTING CHANGES THE GROUP HAD A LOSS OF 195 MILLION KRONER THE GROUP PROPOSED LOWERING THE DIVIDEND FOR THE SECOND CONSECUTIVE YEAR TO THREE KRONER A SHARE FROM 35 KRONER ANALYSTS HAD EXPECTED AN UNCHANGED DIVIDEND OPERATING PROFIT MORE THAN DOUBLED LAST YEAR TO 288 BILLION KRONER FROM 925 MILLION A YEAR EARLIER BUT THE JUMP IS EXAGGERATED BY RESTRUCTURING COSTS OF 29 BILLION KRONER CHARGED AGAINST 1991 RESULTS 9302230080 930223 BUSINESS BRIEF ASHLAND OIL INC FIRM SETTLES EMISSIONS CASE WITH 709 OF 740 INDIVIDUALS ASHLAND OIL INC SAID IT SETTLED WITH 709 OF THE 740 PEOPLE INVOLVED IN FOUR LAWSUITS OVER EMISSIONS FROM THE COMPANY'S CATLETTSBURG KY PLANT THE ASHLAND KY COMPANY SAID THE SETTLEMENTS WON'T HURT EARNINGS TERMS WEREN'T DISCLOSED BECAUSE OF A COURT CONFIDENTIALITY ORDER THE SUITS CHARGED THE COMPANY WITH NEGLIGENCE TRESPASS PERSONAL INJURY AND NUISANCE ALTHOUGH WE BELIEVE THAT ASHLAND WASN'T LIABLE FOR ANY OF THE CLAIMS MADE IN THE LAWSUITS THE EXPECTED LONGTERM COST OF DEFENDING THE COMPANY AND THE DISRUPTION OF OUR BUSINESS AND THE COMMUNITY LED US TO THESE SETTLEMENTS JOHN R HALL ASHLAND'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT 9302230079 930223 COMMODITIES PLATINUM TUMBLES MORE THAN 19 AN OUNCE AS RAPID RISE IN YEN CAUSES MASSIVE SELLING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PLATINUM FUTURES PLUMMETED MORE THAN 19 AN OUNCE ON MASSIVE SELLING IN TOKYO AND NEW YORK TRADERS SAID THE RAPID APPRECIATION IN THE YEN CAUSED SPECULATORS AND INVESTORS TO BACK AWAY FROM THE PRECIOUS METAL WHICH IS PRICED IN DOLLARS ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SKIDDED 1920 TO A LIFEOFCONTRACT LOW OF 33820 AN OUNCE THE PLUNGE IN THE PRICE OF THE ACTIVELY TRADED CONTRACT SHARPLY EXCEEDED AVERAGE DAILY PRICE SWINGS OVER RECENT MONTHS AND APPROACHED THE 26ANOUNCE ALLOWABLE DAILY LIMIT THE LAST TIME THE MARKET EXPERIENCED SUCH A LARGE SWING IN THE SETTLEMENT PRICE WAS OCT 1 1992 WHEN PLATINUM FELL 1730 AN OUNCE TRADERS SAID THE HUGE SELLOFF OF PLATINUM FUTURES ON THE NEW YORK MERC WAS TRIGGERED BY WAVES OF EARLIER SALES ON THE TOKYO COMMODITY EXCHANGE AS THE DOLLAR PLUNGED TO RECORD LOWS AGAINST THE YEN THE JAPANESE HIT PLATINUM HARD OVERNIGHT AND WE HAD FOLLOWTHROUGH HERE SAID SCOTT MEYERS AN ANALYST WITH REDELSILGO GROUP IN NEW YORK THE YEN'S UNPRECEDENTED STRENGTH AGAINST THE DOLLAR COMES IN THE WAKE OF COMMENTS BY TREASURY SECRETARY LLOYD BENTSEN WHO FRIDAY SAID THAT HE WOULD LIKE TO SEE AN APPRECIATION OF THE JAPANESE CURRENCY AS A MEANS OF NARROWING TOKYO'S PERSISTENT TRADE SURPLUS FOR JAPANESE COMMODITY FUNDS AND TRADERS WHO HOLD LONG PLATINUM POSITIONS OR BETS THAT PLATINUM PRICES WILL RISE A WEAKER DOLLAR MEANS LESS YEN FOR EVERY DOLLAR'S WORTH OF PLATINUM FUTURES THEY HOLDHENCE THE MOUNTING PRESSURE TO LIQUIDATE THEIR LONG POSITIONS ANALYSTS SAID FEARS THAT THE GROUP OF SEVEN INDUSTRIAL NATIONS WILL SUPPORT FURTHER STRENGTH IN THE YEN AT THIS WEEKEND'S MEETING OF G7 FINANCE MINISTERS TRIGGERED YESTERDAY'S HEFTY SALES OF PLATINUM FUTURES ANALYSTS SAID THEY SAID THAT A COMBINATION OF TECHNICAL FACTORS OR HISTORIC PRICETREND INDICATORS ALSO PUSHED PLATINUM LOWER YESTERDAY'S SHARP DECLINE IN THE FUTURES PRICE OF THE WHITE METAL FOLLOWS A COMBINED 9 AN OUNCE DROP IN PLATINUM FUTURES FOR APRIL DELIVERY IN TRADING ON THE NEW YORK MERC THURSDAY AND FRIDAY ANALYSTS ATTRIBUTED THOSE EARLIER RETREATS IN PART TO CONCERNS OVER THE APPARENTLY DEFLATIONARY CLINTON TAX PROPOSALS AND TO REPORTS LAST WEEK THAT JAPAN WAS GOING TO CUT ITS IMPORTS OF PLATINUM AND PALLADIUM BECAUSE OF DECLINING AUTO SALES PLATINUM AND PALLADIUM ARE USED EXTENSIVELY BY THE AUTOMOTIVE INDUSTRY AS CRITICAL PARTS OF CATALYTIC CONVERTERS PALLADIUM FOR JUNE DELIVERY SETTLED 900 LOWER AT 9550 AN OUNCE YESTERDAY ON THE NEW YORK COMMODITY EXCHANGE SOME ANALYSTS SAID HOWEVER THAT DEMAND FROM JAPANESE AUTO MAKERS SHOULD NOT BE SEEN AS THE MOST IMPORTANT DETERMINANT OF PLATINUM FUTURES PRICE TRENDS THE UNITED STATES AND EUROPE IS WHERE THE REAL INCREASE IN DEMAND WILL COME FROM BECAUSE OF INCREASINGLY STRINGENT EMISSION CONTROL REGULATIONS SAID NINA LIPTON DIRECTOR OF MARKET RESEARCH AT PLATINUM GUILD INTERNATIONAL INC IN NEW YORK OTHER ANALYSTS SAID THEY EXPECTED THE JAPANESE JEWELRY INDUSTRY TO TAKE ADVANTAGE OF THE LOWER PRICE IN YEN OF THE PHYSICAL METAL TO INCREASE PURCHASES PLATINUM'S PRICE IN YEN HAS FALLEN NEARLY 50 SINCE EARLY 1990 SAID BILL FLECKENSTEIN A SEATTLEBASED INVESTOR FAMILIAR WITH THE JAPANESE PLATINUM MARKET THERE'S BEEN A PATTERN OF INCREASED DEMAND FROM JAPANESE JEWELERS DURING PERIODS OF WEAKNESS IN THE YENDENOMINATED PRICE OF PLATINUM HE ADDED MS LIPTON SAID SHE EXPECTED TO SEE A CORRECTION IN THE FLAGGING PLATINUM MARKET SOON AS THE PRICE OF PLATINUM APPROACHES THE PRICE OF GOLD IT ATTRACTS A LOT OF DIFFERENT PLAYERS INTO THE MARKET WHO SEE THE RELATIVELY LOW PLATINUM PRICE AS A BUYING OPPORTUNITY SHE SAID ON THE NEW YORK COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY SETTLED 220 LOWER AT 32880 AN OUNCE WHILE SILVER FOR MARCH DELIVERY SHED FOUR CENTS TO SETTLE AT 3525 AN OUNCE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY THE OPEC RALLY IN WORLD OIL MARKETS WHICH BEGAN LATE LAST WEEK CONTINUED YESTERDAY ON RISING EXPECTATIONS THE OIL EXPORTERS WILL CUT OUTPUT MONDAY AS AGREED PETROLEUM FUTURES ROSE IN LONDON AND NEW YORK ON THE NEW YORK MERCANTILE EXCHANGE THE MARCH CRUDE CONTRACT WHICH EXPIRED YESTERDAY SETTLED 40 CENTS HIGHER AT 2002 A BARREL APRIL CRUDE WAS UP 44 CENTS TO 2024 A BARREL ANALYSTS SAID THE GAINS WERE MOSTLY A REACTION TO LAST WEEK'S AGREEMENT BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT PRODUCTION BY 14 MILLION BARRELS A DAY SO FAR LIBYA ABU DHABI AND SAUDI ARABIA HAVE ADVISED CONTRACT CUSTOMERS THAT DELIVERIES WILL BE REDUCED FOR MARCH TRADERS SAID TECHNICAL FACTORS ALSO CONTRIBUTED TO THE PRICE INCREASES AFTER CRUDE FUTURES BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL IN NEW YORK COLDER WEATHER HELPED TO PUSH UP NATURAL GAS FUTURES WITH THE APRIL CONTRACT RISING 97 CENTS TO 1849 A MILLION BRITISH THERMAL UNITS 1000 CUBIC FEET GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES DECLINED AS SOYBEAN GROWINGREGIONS OF BRAZIL GOT TIMELY RAIN INCREASING THE PROSPECT FOR A RECORD YIELD THROUGHOUT BRAZIL'S GROWING SEASON FARMERS IN THE SOUTH AMERICAN NATION HAVE ENJOYED IDEAL GROWING WEATHER MANY ANALYSTS ARE NOW CALLING FOR A RECORD YIELD OF BRAZILIAN SOYBEANS THE PROSPECT OF WHICH IS TUGGING DOWN ON SOYBEAN FUTURES PRICES AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MARCH DELIVERY WAS DOWN 25 CENTS TO 57075 A BUSHEL MEANWHILE THE PRICE OF MARCH WHEAT WAS UP 225 CENTS TO 369 A BUSHEL COCOA FUTURES PRICES JUMPED 30 A TON ON THE ACTIVELY TRADED MAY CONTRACT TO SETTLE AT 959 AMID STRONG TECHNICALLY DRIVEN BUYING BY COMMODITY FUNDS ANALYSTS SAID THAT THE MAY CONTRACT HAVING BROKEN THROUGH AN IMPORTANT RESISTANCE LEVEL OF 950 A TON WAS POISED TO MOVE SHARPLY HIGHER TOWARD THE 1000ATON LEVEL OVER THE NEXT FEW WEEKS ON TECHNICAL GROUNDS COCOA'S UPWARD MOVE IN THE FUTURES MARKET WAS ITS MOST SIGNIFICANT RISE IN MONTHS 9302230078 930223 MARKETSCAN NOW PLAYING AT YOUR LOCAL SUPERMARKET THE SUCCESS OF THE GRANOLA BAR PART II BY KATHLEEN DEVENY THEY'RE BAAACK GRANOLA BARS THE SNACK HIT OF THE MID'80S SEEMED DESTINED TO GO THE ROUTE OF EARTH SHOES AND OAT BRAN AFTER CONSUMERS DECIDED THEY WERE MERELY CANDY BARS IN DISGUISE BUT NOWADAYS FOOD SHOPPERS SEEKING A MORE HEALTHFUL ALTERNATIVE TO CHOCOLATE OR CHIPS ARE REDISCOVERING THE WHOLESOME TREATS MARKETERS MEANWHILE ARE RACING TO SPIN OUT NEW VARIETIES INCLUDING NEW FLAVORS BITESIZE VERSIONS AND BARS WITH FRUITY FILLINGS AMERICA'S CRAVING FOR SNACKS THAT SEEM HEALTHFUL BUT DON'T TASTE LIKE IT HAS HELPED TURN GRANOLA BARS BACK INTO ONE OF THE 10 FASTESTGROWING PRODUCTS IN THE SUPERMARKET DURING THE 1992 FOURTH QUARTER SALES OF GRANOLA AND OTHER SNACK BARS JUMPED 19 TO 1108 MILLION COMPARED WITH A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE LEADING THE PACK NUTRIGRAIN CEREAL BARS MADE BY KELLOGG CO SALES OF THE SNACKS PITCHED AS AN ALTERNATIVE TO A BOWL OF CEREAL SOARED 435 TO 223 MILLION IN THE QUARTER MEANWHILE SALES OF BUDGETPRICED SUNBELT CHEWY GRANOLA BARS MADE BY MCKEE FOODS CORP IN COLLEGEDALE TENN JUMPED 251 TO 67 MILLION GENERAL MILLS INC ALSO SCORED A HIT WITH NEW NATURE VALLEY GRANOLA BITES WHICH RANG UP 41 MILLION IN SALES IN THE QUARTER CONSUMERS WERE SOMEWHAT DISCRIMINATING HOWEVER THE SWEETEST GRANOLA SNACKS GENERALLY DIDN'T FARE AS WELL AS THEIR OATLADEN COMPETITORS SALES OF QUAKER CHEWY GRANOLA BARS WHICH TARGET TOTS AND COME LOADED WITH CHOCOLATE CHIPS OR PEANUT BUTTER DIPPED NEARLY 6 TO 18 MILLION MEANWHILE QUARTERLY SALES OF MARS INC'S KUDOS INCLUDING SUCH FLAVORS AS NUTTY FUDGE AND COOKIES AND CREME GREW ONLY 14 TO 131 MILLION COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF FASTESTGROWING PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS EACH QUARTER INFORMATION RESOURCES RANKS 292 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE GROWTH COMPARED WITH THE YEAREARLIER PERIOD THE URGE FOR HOMECOOKED MEALS THAT DON'T REQUIRE COOKING SKILLS HELPED MAKE MEAT SAUCES AND MARINADES THE FASTESTGROWING SUPERMARKET PRODUCT FOR THE SECOND CONSECUTIVE QUARTER SALES OF THE SAUCES INCLUDING RAGU CHICKEN TONIGHT MADE BY A UNIT OF UNILEVER GROUP AND BETTY CROCKER RECIPE SAUCES FROM GENERAL MILLS SOARED 105 TO 44 MILLION QUARTERLY SALES OF PREPAREDGRAVY PRODUCTS AND REFRIGERATED BISCUITS WERE ALSO STRONG WHILE SOME CONSUMERS FRETTED ABOUT FAT AND CALORIES PLENTY OF OTHERS LOADED UP ON SWEETS CONFIRMING THE BELIEF OF SOME MARKETING CONSULTANTS THAT INDULGENCE REMAINS A POWERFUL MOTIVATING FACTOR FOR CONSUMERS SALES OF READYMADE PIES AND REFRIGERATED PUDDINGS AND GELATINS GREW NEARLY 30 WHILE NEW FLAVORS OF COFFEEMATE REFRIGERATED COFFEE CREAMERS IRISH CREAM AMARETTO AND HAZELNUT HELPED BOOST CATEGORY SALES BY 37 SHOPPERS DIDN'T JUST FILL THEIR CARTS WITH QUICK EATS AND SWEETS THEY ALSO STOCKED UP ON TOILETBOWL CLEANERS AND SANITIZERS KEEPING SALES BRIGHT TOILET DUCK A BATHROOM CLEANER WITH A DUCKLIKE NECK LAUNCHED LAST YEAR BY SC JOHNSON & SON INC WHETHER CONSUMERS' GOALS WERE INDULGENCE CONVENIENCE OR HEALTH MARKETING EXPERTS SAY THE LIST OF FASTESTGROWING PRODUCTS CONFIRMS THAT TASTE REMAINS FOOD SHOPPERS' TOP PRIORITY EVEN DURING THE INCREASINGLY HEALTHCONSCIOUS '90S CONSUMERS WON'T BUY A FOOD PRODUCT THAT DOESN'T PROVIDE SOME PLEASURE IN ADDITION TO GRANOLA BARS RICE AND POPCORN CAKES WERE POPULAR WITH SALES UP 36 TO 424 MILLION DURING THE FOURTH QUARTER CARAMELCORN AND APPLECINNAMON CAKES INTRODUCED LAST YEAR BY QUAKER OATS CO HELPED PROPEL SALES OF THE SNACKS THANKS PARTLY TO A NEW PROCESS OF SPRAYING ON LIQUID FLAVORS THAT INTENSIFIES SWEETNESS QUAKER WIDENED ITS LEAD IN THE CATEGORY THE PRIMARY BENEFIT OF RICE CAKES HAS ALWAYS BEEN THAT THEY ARE NOFAT AND LOWCALORIE IF YOU DIDN'T CARE ABOUT THOSE QUALITIES YOU'D BE EATING OREOS SAYS POLLY KAWALEK VICE PRESIDENT OF MARKETING FOR SNACKS AT QUAKER EVEN THOUGH QUAKER'S CARAMEL CAKES HAVE 50 CALORIES EACH 15 MORE THAN OTHER FLAVORS MS KAWALEK SAYS CALORIECONSCIOUS CONSUMERS ARE VERY WILLING TO MAKE THE TRADEOFF FOR BETTER TASTE FOOD IS MORE ABOUT ENJOYMENT THAN SURVIVAL SHE EXPLAINS PERHAPS NO PRODUCT ILLUSTRATES THE RISKS OF THAT STRATEGY BETTER THAN GRANOLA BARS ONCE A COUNTERCULTURE FAVORITE GRANOLA REACHED MAINSTREAM STATUS IN THE MID1970S WHEN GENERAL MILLS INTRODUCED ITS NATURE VALLEY GRANOLA CEREAL LATER THE COMPANY ADDED A SNACK BAR UNDER THE SAME NAME QUAKER FOLLOWED IN 1981 WITH A SWEETER CHEWY GRANOLA BAR AND GRABBED THE CATEGORY'S NO 1 SPOT OTHER BIG MARKETERS INCLUDING CANDY KINGS HERSHEY FOODS CORP AND MARS QUICKLY CROWDED INTO THE MARKET WITH EVER SWEETER VERSIONS SALES ROSE TO AN ESTIMATED 370 MILLION IN 1985 HEALTHCONSCIOUS CONSUMERS HOWEVER QUICKLY BECAME DISILLUSIONED WHEN MARKETERS LOADED UP THE SNACK BARS WITH CHOCOLATE AND MARSHMALLOWS A KUDOS BOX CROWS THAT THE BARS ARE BURSTING WITH THE CRUNCH OF WHOLESOME GRAIN GOODNESS BUT THE LABEL SHOWS EACH BAR HAS ABOUT 12 GRAMS OF FAT ONE LESS THAN A SNICKERS BAR ATTEMPTS TO OBTAIN COMMENT FROM MARS WERE UNSUCCESSFUL BUT GRANOLA BARS GOT A NEW BOOST LATER THAT YEAR WHEN KELLOGG ROLLED OUT ITS NUTRIGRAIN THE COMPANY BORROWED THE NAME AND THE HEALTHFUL PITCH OF ITS NUTRIGRAIN CEREAL THE STRAWBERRY VARIETY IS MADE WITH SWEETENED STRAWBERRY PRESERVES WHICH A KELLOGG SPOKESWOMAN SAYS IS HEALTHFUL IN THAT IT IS REAL FRUIT AND THE BARS SHE SAYS WOULD BE A CONTRIBUTION TO AN OVERALL LOW FAT DIET OTHER MARKETERS ARE SCRAMBLING TO CASH IN ON THE GRANOLA REVIVAL GENERAL MILLS JUMPED IN AGAIN LAST YEAR WITH BITESIZE NATURE VALLEY SNACKS IN APPLE CINNAMON AND HONEY NUT VARIETIES TWO POPULAR FLAVORS OF THE COMPANY'S CHEERIOS BREAKFAST CEREAL QUAKER THIS YEAR INTRODUCED TRAIL MIX AND APPLE BERRY VERSIONS OF ITS CHEWY BARS AIMED AT ADULTS BUT THERE ARE ALREADY SIGNS THAT MARKETERS MAY BE ABOUT TO STRETCH THEIR CREDIBILITY WITH CONSUMERS ONCE AGAIN LAST FALL FOR EXAMPLE GENERAL MILLS ROLLED OUT INCREDIBITES ANOTHER GRANOLA PRODUCT AIMED AT KIDS EACH OF THE BITESIZE SANDWICHES COMES FILLED WITH PEANUT BUTTER VANILLA CREAM OR CHOCOLATE ALL HEALTHY SNACKS EVENTUALLY MIGRATE TOWARDS CONFECTIONS SAYS LISBETH ECHEANDIA PUBLISHER OF CONFECTIONER MAGAZINE IF THEY DON'T TASTE GOOD YOU JUST CAN'T GET PEOPLE TO KEEP EATING THEM SUPERMARKET SHOPPERS LOADED UP ON SUCH DIVERSE ITEMS AS GRANOLA BARS RICE CAKES AND TOILETBOWL CLEANERS LAST QUARTER 9302230077 930223 PICO INCREASES RESERVES FOR '92 PICKERINGTON OHIO PHYSICIANS INSURANCE CO OF OHIO SAID IT INCREASED ITS 1992 RESERVES WHICH WILL REDUCE NET INCOME FOR THE YEAR BY AN AMOUNT THAT SHOULD BE KNOWN LATER THIS WEEK IN THE FIRST NINE MONTHS THE COMPANY EARNED 157350 OR FIVE CENTS A SHARE SEPARATELY PICO SAID NEGOTIATIONS WITH THE OHIO STATE MEDICAL ASSOCIATION ABOUT THE REPURCHASE OF THE COMPANY'S CLASS B COMMON SHARES HAVE BEEN SUSPENDED THE COMPANY SAID THE BUYBACK OF SHARES FROM THE AGENCY REMAINS IN THE BEST INTEREST OF THE CORPORATION AND THAT IT HOPES TO REOPEN THE TALKS AS SOON AS THE SITUATION PERMITS 9302230076 930223 REVIEW & OUTLOOK EDITORIAL BILL'S JOBS AND EUROPE'S BILL CLINTON'S ECONOMIC PLANS HAVE BEEN WELL RECEIVED BY EUROPE'S POLITICAL LEADERS AND WHY NOT THE POLICIES ARE FAMILIAR TO EUROPEANS INCREASED PUBLIC WORKS SPENDING IN THE NAME OF JOB CREATION INCREASED SOCIAL WELFARE MANDATES TAX CREDITS FOR PLANT AND EQUIPMENT HIGHER TAXES ON ENERGY AND FOR THE UPPER INCOME GROUPS THERE OF COURSE ARE DIFFERENCES BUT THE DRIFT SOME MIGHT CALL IT EURODRIFT IS CLEAR YOU JUST HAVE TO HOPE THAT THESE POLICIES WON'T HAVE THE SAME EFFECT IN THE US AS THEY HAVE HAD IN EUROPE THERE THEY HAVEN'T CREATED JOBS THEY'VE KILLED JOBS JOBLESSNESS IN EUROPE IS HUGE WELFARE STATE FINLAND HAS AN UNEMPLOYMENT RATE OF 20 BRITAIN SAW THE NUMBER OF ITS UNEMPLOYMENT RATE HIT 106 LAST WEEK THESE NATIONS ARE IN THE MIDST OF SEVERE RECESSIONS EVEN IN NATIONS THAT ARE COMING OFF SEVERAL YEARS OF GOOD GROWTH AND THAT ARE ONLY NOW HEADING INTO RECESSION UNEMPLOYMENT IS A BIG PROBLEM THE TOTAL EC UNEMPLOYMENT LEVEL IS EXPECTED TO HIT 11 LATER THIS YEAR IN FRANCE WHICH HAS HAD THE HEALTHIEST EUROPEAN ECONOMY OVER THE PAST FEW YEARS THERE ARE MORE THAN THREE MILLION PEOPLE LISTED AS UNEMPLOYED IN ADDITION TWO MILLION PEOPLE ARE RECEIVING BENEFITS WHILE ENROLLED IN STATE TRAINING PROGRAMS ALTOGETHER 18 OF THE WORKING POPULATION IS OUT OF A JOB THE DECADESLONG RISE IN EUROPEAN UNEMPLOYMENT TODAY THE RATES ARE SIX TIMES HIGHER THAN THEY WERE IN THE 1960S IS HITTING THE HEADS OF HOUSEHOLDS HARDEST WHEN JOBS HAVE BEEN CREATED THEY HAVE TENDED TO GO TO SECOND MEMBERS OF TWOINCOME FAMILIES WOMEN IN THE EUROPEAN COMMUNITY ARE ONLY NOW ENTERING THE LABOR MARKET IN THE SAME NUMBERS AS ELSEWHERE IN THE INDUSTRIALIZED WORLD THE RESULT IS AN ARMY OF LONGTERM UNEMPLOYED ABOUT HALF OF EUROPE'S UNEMPLOYED CAN BE SO CLASSIFIED COMPARED WITH ONLY 6 OF THOSE IN THE US AND 18 IN JAPAN ACCORDING TO A FINANCIAL TIMES ANALYSIS ONE OF THE IRONIC EFFECTS OF THIS SITUATION IS THAT THE UNEMPLOYMENT IS LESS VISIBLE IN EUROPE ITS LONGTERM UNEMPLOYED TEND TO HAVE SETTLED INTO ROUTINES THAT KEEP THEM INCONSPICUOUS IN SOME SOUTHERN EUROPEAN COUNTRIES COLLEGE GRADS MERELY WAIT IN LINE FOR THEIR JOBSFORLIFE WITH A GOVERNMENT BUREAUCRACY BUT THEY DON'T CALL IT NATIONAL SERVICE THE MAJOR UNDERLYING CAUSE OF EUROPE'S UNEMPLOYMENT IS NO GREAT MYSTERY THE RELATIVE COST OF LABOR WAGES IN JAPAN AND THE US HAVE BEEN MORE SENSITIVE TO MARKET FORCES THAN WAGES IN EUROPE EUROPEAN GOVERNMENTS INTERVENE TO PREVENT WAGES FROM RATCHETING DOWN THE RESULT HAS BEEN A CONTINENT IN WHICH POLITICALLY POWERFUL WORKERS HAVE SEEN REAL WAGES RISE WHILE LESS WELLCONNECTED WORKERS HAVE PAID THE PRICE THROUGH UNEMPLOYMENT NOW AS GERMAN AUTO AND STEEL WORKERS ARE DISCOVERING NO ONE IS SAFE BUT IT IS NOT WAGES THAT ULTIMATELY DETERMINE EMPLOYMENT LEVELS BUT THE COST OF WORKERS THE HIGH UNEMPLOYMENT NATIONS OF SOUTHERN EUROPE FOR EXAMPLE MAKE IT VERY DIFFICULT TO LAY OFF WORKERS THUS RAISING THE POTENTIAL COST OF EACH EMPLOYEE THE PERVASIVE PESSIMISM THAT EXISTS IN EUROPE IS CAUSED IN PART BY THE HIGH UNEMPLOYMENT BUT ALSO WE SUSPECT BY THE FACT THAT GOVERNMENTS ARE MERELY PILING ON THE SUBSIDY POLICIES THAT CONTRIBUTE TO HIGH COSTS AND DISTORTIONS IN THE FIRST PLACE HERE GOVERNMENT POLICY FOR THE PAST 12 YEARS WAS TO PREVENT THE US SYSTEM FROM VEERING IN THIS DIRECTION NOW WE'RE NOT SO SURE 9302230075 930223 TECHNOLOGY & MEDICINE AMERITECH WANTS TO ENTER LONG DISTANCE BABY BELL ALSO REVAMPING INTO 12 UNITS TO OPEN ITS NETWORK IN EXCHANGE BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL AMERITECH CORP WANTS PERMISSION TO ENTER THE LONGDISTANCE BUSINESS AND MORE FLEXIBILITY IN SETTING PRICES FOR ITS SERVICES IN EXCHANGE FOR OPENING UP ITS MIDWESTERN PHONE NETWORK TO COMPETITORS IN ADDITION THE CHICAGOBASED BABY BELL SAID IT WOULD RESTRUCTURE INTO 12 UNITS AMERITECH WHICH HAS BEEN STUDYING A RESTRUCTURING SINCE LAST SPRING SAID 11 OF THE BUSINESS UNITS WOULD FOCUS ON SPECIFIC GROUPS OF CONSUMERS SUCH AS RESIDENTIAL CUSTOMERS SMALL BUSINESSES LONGDISTANCE COMPANIES AND LARGE CORPORATIONS THE REMAINING UNIT WOULD RUN THE LOCAL PHONE NETWORK THE COMPANY'S PLAN TO ENTER THE LONGDISTANCE MARKET FACES A ROCKY ROAD ANALYSTS SAID AMERITECH WOULD HAVE TO OVERCOME THE OPPOSITION OF POWERFUL LONGDISTANCE PROVIDERS AND CLEAR NUMEROUS REGULATORY AND LEGAL HURDLES INDEED JUST YESTERDAY THE SUPREME COURT DEALT AMERITECH A BLOW IN A LONGDISTANCE CASE STILL AFTER YESTERDAY'S ANNOUNCEMENT AMERITECH SHARES JUMPED 1625 TO 76 IN LATE NEW YORK STOCK EXCHANGE TRADING THIS IS NOT A REORGANIZATION BUT A TRANSFORMATION TO CREATE A MORE RESPONSIVE COMPANY SAID WILLIAM WEISS AMERITECH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR WEISS SAID THE COMPANY WILL SOON ASK THE FEDERAL COMMUNICATIONS COMMISSION TO REVIEW AND ENDORSE ITS PLAN TO OPEN UP THE LOCAL PHONE BUSINESS TO COMPANIES THAT WANT TO OFFER COMPETING PHONE SERVICE AT THE SAME TIME IT WILL ASK THE FCC TO SUPPORT ITS PLAN TO LIFT THE BANS ON THE REGIONAL BELL PHONE COMPANIES PROVIDING LONGDISTANCE SERVICE AND ON LOCAL PHONE COMPANIES OWNING CABLETELEVISION SYSTEMS IN THEIR SERVICE TERRITORIES LIFTING THE LONGDISTANCE BAN WHICH WAS A KEY PROVISION OF THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM WOULD HAVE TO BE APPROVED BY THE JUSTICE DEPARTMENT AND BY JUDGE HAROLD GREENE WHO OVERSEES THE DECREE OR IT WOULD HAVE TO BE PASSED BY CONGRESS THE BAN ON CABLETV OWNERSHIP CONTAINED IN THE 1984 CABLE ACT ALSO WOULD HAVE TO BE LIFTED BY CONGRESS OR THE COURTS CONGRESSIONAL OR COURT ACTION ON EITHER MATTER IS LIKELY TO TAKE TWO TO THREE YEARS AMERITECH SAID IN ADDITION THE PHONE COMPANY WANTS GREATER FLEXIBILITY TO RAISE OR LOWER PRICES AND WANTS TO SCRAP REGULATION OF ITS RATES UNDER THE PLAN AMERITECH WOULDN'T ALLOW COMPETITORS TO BUY NETWORK SERVICES UNTIL IT WINS RELAXED REGULATION AND PERMISSION TO ENTER THE LONGDISTANCE BUSINESS AS AMERITECH WAS ANNOUNCING ITS PLAN IT TOOK A BLOW ON THE LEGAL FRONT YESTERDAY WHEN THE SUPREME COURT DECLINED TO HEAR ITS APPEAL OF A LOWER COURT RULING BARRING THE BELL COMPANIES FROM PROVIDING ADVANCED CALLROUTING SERVICES ACROSS LONGDISTANCE BOUNDARIES AT THE SAME TIME ANALYSTS VOICED DOUBTS ABOUT AMERITECH'S PLAN JACK GRUBMAN A TELECOMMUNICATIONS ANALYST WITH PAINEWEBBER INC SAID THE BABY BELLS ARE NAIVE IF THEY THINK REGULATORS WILL JUST GO ALONG WITH SUCH A PLAN WITHOUT MODIFICATIONS THE PHONE COMPANIES HE SAID AREN'T LIKELY TO GET MUCH REGULATORY RELIEF UNTIL THEY CAN DEMONSTRATE THAT THEIR LOCAL MARKET SHARE HAS DROPPED SIGNIFICANTLY AMERITECH'S EFFORTS TO GET THE LONGDISTANCE BAN LIFTED ALSO WILL RUN INTO INTENSE OPPOSITION FROM LONGDISTANCE COMPANIES WHICH HAVE BEEN ENCOURAGING THE DEVELOPMENT OF LOCAL PHONE COMPETITION AS A WAY TO CUT THE FEES THEY PAY TO LOCAL PHONE COMPANIES TO COMPLETE LONGDISTANCE CALLS SAYING THERE IS LOCAL COMPETITION DOES NOT MAKE IT A REALITY SAID AMERICAN TELEPHONE & TELEGRAPH CO THE BIGGEST US LONGDISTANCE PROVIDER THAT WILL OCCUR ONLY WHEN CONSUMERS CAN CHOOSE AMONG COMPETING PROVIDERS OF LOCAL PHONE SERVICE AS EASILY AS THEY CHOOSE THEIR LONGDISTANCE COMPANIES AMERITECH IS THE SECOND PHONE COMPANY THIS MONTH TO PROPOSE SPLITTING ITS PHONE NETWORK INTO A SEPARATE UNIT ROCHESTER TELEPHONE CORP IN A PROPOSAL TO NEW YORK STATE REGULATORS SAID IT WOULD SET UP A PHONE NETWORK UNIT THAT WOULD SELL PHONE SERVICES ON A WHOLESALE BASIS TO A SEPARATE RETAIL SERVICE COMPANY OWNED BY ROCHESTER TELEPHONE AS WELL AS TO OTHER COMPANIES THAT WANT TO COMPETE WITH ROCHESTER TELEPHONE AMERITECH'S PLAN IS SIMILAR A SINGLE BUSINESS UNIT WILL RUN THE AMERITECH NETWORK IN THE COMPANY'S FIVESTATE TERRITORY ILLINOIS INDIANA OHIO MICHIGAN AND WISCONSIN THE COMPANY SAID THAT ONCE IT GETS PRICING FLEXIBILITY AND THE AUTHORITY TO OFFER LONGDISTANCE SERVICE IT WOULD ALLOW COMPETITORS TO LINK WITH ITS NETWORK BEGINNING LATER THIS YEAR THE COMPANY WILL BEGIN USING THE AMERITECH NAME FOR SERVICES AND BILLING NOT THE STATE BELL BRANDS THE STATE ORGANIZATIONS ILLINOIS BELL INDIANA BELL ETC WILL CONTINUE TO OWN PHONE ASSETS IN EACH STATE SEPARATELY NYNEX CORP SAID IT HAS SET UP A SIXMEMBER EXECUTIVE TEAM RESPONSIBLE FOR STRATEGIC PLANNING AND DEVELOPMENT OF NEW WAYS TO DELIVER SERVICES THE TEAM LED BY IVAN SEIDENBERG A VICE CHAIRMAN OF THE WHITE PLAINS NY BABY BELL INCLUDES THE PRESIDENTS OF NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE UNITS MR SEIDENBERG SAID THE TEAM'S MISSION IS TO IDENTIFY NEW SERVICES AND COSTCUTTING MEASURES AS WELL AS MARKETING OPPORTUNITIES THAT CROSS COMPANY LINES 9302230074 930223 BUSINESS BRIEF ANNTAYLOR STORES CORP COMPANY'S LOSS NARROWED IN ITS FISCAL FOURTH QUARTER ANNTAYLOR STORES CORP SHARPLY REDUCED ITS LOSS IN THE FISCAL FOURTH QUARTER REFLECTING EFFORTS TO STABILIZE BUSINESS AND SUCCESS IN BRINGING BACK CUSTOMERS TO THE WOMEN'S CLOTHING CHAIN ANNTAYLOR HAD A NET LOSS FOR THE QUARTER ENDED JAN 30 OF 11 MILLION OR FIVE CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 54 MILLION OR 27 CENTS A SHARE SALES ROSE 13 TO 1259 MILLION FROM 1115 MILLION FOR THE FISCAL YEAR NET INCOME ROSE TO 59 MILLION OR 28 CENTS A SHARE FROM A LOSS OF 158 MILLION OR 82 CENTS A SHARE A YEAR EARLIER SALES ROSE 7 TO 4684 MILLION FROM 4377 MILLION RESULTS REFLECT AN EXTRAORDINARY CHARGE OF 39 MILLION OR 11 CENTS A SHARE FOR THE YEAR STEMMING FROM A PREVIOUSLY ANNOUNCED SETTLEMENT OF A STOCKHOLDERS' CLASS ACTION SUIT DISREGARDING THE CHARGE THE COMPANY HAD FOURTHQUARTER NET INCOME OF 866000 OR FOUR CENTS A SHARE AND FISCAL YEAR NET INCOME OF 82 MILLION OR 39 CENTS A SHARE THE COMPANY ATTRIBUTED FISCAL 1992'S FAVORABLE RESULTS TO HIGHER GROSS PROFIT AND LOWER INTEREST EXPENSES LARGELY BECAUSE OF LOWER RATES AND REDUCED ADMINISTRATIVE COSTS FROM STAFF AND SALARY CUTS ANNTAYLOR SHARES WERE UP 125 TO 20875 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9302230073 930223 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK NET LOSS OF 179 MILLION REPORTED FOR FOURTH PERIOD DIME SAVINGS BANK OF NEW YORK REPORTED A FOURTHQUARTER NET LOSS OF 179 MILLION IN PART REFLECTING A 239 MILLION CHARGE RELATED TO THE SALE OF A UNIT AND SAID IT PLANS TO CUT 225 JOBS OR 10 OF ITS WORK FORCE THE LOSS WAS EQUAL TO 78 CENTS A SHARE A YEAR EARLIER THE THRIFT HAD A NET LOSS OF 1973 MILLION OR 854 A SHARE THE LATEST QUARTER CHARGE REFLECTS ELIMINATION OF GOODWILL OF A SUBSIDIARY BEING SOLD THE PROVISION FOR LOAN LOSSES FELL TO 207 MILLION IN THE LATEST QUARTER FROM 2037 MILLION THE 88 BILLION THRIFT SAID IT IS MAKING PROGRESS TOWARD MEETING REGULATORY CAPITAL REQUIREMENTS AND EXPECTS TO RAISE AT LEAST 125 MILLION BY JUNE 30 MOST LIKELY THROUGH A RIGHTS OFFERING TO CURRENT SHAREHOLDERS IT ALSO PLANS TO CUT ASSETS TO ABOUT 75 BILLION BY THAT DATE RICHARD D PARSONS CHAIRMAN SAID THE MOVES COMBINED WITH ANTICIPATED EARNINGS ARE EXPECTED TO BRING THE DIME INTO FULL COMPLIANCE FOR MANDATED CAPITAL RATIOS AT JUNE 30 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY DIME FELL 50 CENTS TO 825 9302230072 930223 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AS TRADE HAS INCREASED CHINA HAS ACCUMULATED HUGE SUMS OF THE HONG KONG AND TAIWAN CURRENCIES DRAINING LOCAL BANK DEPOSITS AND PROMPTING CONCERN OF A LENDING SQUEEZE IN THE TWO ASIAN MANUFACTURING AND TRADING TERRITORIES HONG KONG'S AND TAIWAN'S INCREASING LINKS WITH CHINA'S ECONOMY HAVE MADE HONG KONG AND NEW TAIWAN DOLLARS MORE POPULAR IN CHINA THAN THE US DOLLAR FOR TRADE DEALS MEANWHILE CHINA'S INFLATION AND DEPRECIATING YUAN HAVE PROMPTED MANY CHINESE EMPLOYEES IN FOREIGNINVESTED FIRMS TO DEMAND PAY IN EITHER THE HONG KONG OR TAIWAN CURRENCIES CHINA'S BUILDUP OF THE TWO CURRENCIES WAS HASTENED BY LAST YEAR'S WAVE OF SPECULATIVE PROPERTY PURCHASES IN CHINA BY OVERSEAS CHINESE AND BY THE YUAN'S RECENT 8 DECLINE AGAINST THE US DOLLAR UNLIKE IN HONG KONG WHERE CHINESE BANKS CAN LEND MONEY BACK TO COLONY BANKS FOR RELENDING TO LOCAL INVESTORS TAIWAN PROHIBITS ITS BANKS FROM DOING BUSINESS WITH CHINESE BANKS SO NEW TAIWAN DOLLARS THAT MOVE TO CHINA ARE UNLIKELY TO FIND THEIR WAY BACK TAIWAN WILL BAN TELEVISION ADVERTISEMENTS FOR INFANT FORMULA APRIL 1 TO ENCOURAGE BREASTFEEDING WHICH SURVEYS FOUND IS PRACTICED BY LESS THAN 10 OF TAIWAN WOMEN THE HEALTH DEPARTMENT SAID THE ISLAND STATE'S THREE TV STATIONS HAVE BEEN ORDERED TO STOP SHOWING THE COMMERCIALS IT WILL DISCOURAGE THE ADS ON RADIO AND IN PRINT WHERE IT HASN'T ANY AUTHORITY INFANTFORMULA PRODUCERS AND IMPORTERS SPEND AT LEAST 77 MILLION A YEAR ON ADS IMPORTS ACCOUNT FOR 80 OF THE MARKET VALUED AT 119 MILLION ANNUALLY FRENCH PRIME MINISTER PIERRE BEREGOVOY VOWED TO BLOCK A USEUROPEAN COMMUNITY DEAL ON OILSEED TRADE AND URGED DROPPING THE AGREEMENT FROM THE AGENDA WHEN EC FOREIGN MINISTERS MEET MARCH 8 HE TOLD TOP EC OFFICIALS THAT THE MATTER SHOULD BE DELAYED UNTIL COMPLETION OF STUDIES ON WHETHER THE ACCORD IS COMPATIBLE WITH EC FARM POLICY FRENCH OFFICIALS SAID FRANCE WOULD VETO THE NOV 20 OILSEED AGREEMENT UNDER A RARELY USED EC PROCEDURE CLAIMING THE COUNTRY'S VITAL NATIONAL INTERESTS ARE AT STAKE BUT THE ACCORD COULD STILL BE ENACTED BY WEIGHTED VOTING SLOVAKIA INTENDS TO INCREASE ITS USE OF NATURAL GAS AS A PRIMARY ENERGY SOURCE THE ECONOMY MINISTRY'S DRAFT PLAN FOR ENERGY DIVERSIFICATION IS PART OF THE CENTRAL EUROPEAN STATE'S INDUSTRIAL POLICY TO STABILIZE THE ECONOMY AND TRANSFORM IT EFFICIENTLY WITHOUT RUINING THE ENVIRONMENT SLOVAKIA WHICH BECAME INDEPENDENT JAN 1 IS DEALING WITH A LEGACY OF POLLUTION FROM CENTRAL PLANNING SLOVAKIA INTENDS FIRST TO REDUCE ITS DEMAND FOR ENERGY IMPORTS THEN TO DEVELOP ENERGY RESOURCES INCLUDING BUILDING A SECOND GAS PIPELINE AND INCREASING GAS STORAGE CAPACITY CHINA WILL OPEN ITS POST AND TELECOMMUNICATIONS SECTOR TO OVERSEAS INVESTORS TO HELP IT EXPAND PLANNED IMPROVEMENTS INCLUDE TELECOMMUNICATIONS CONSTRUCTION AND EQUIPMENT MANUFACTURING HIGHCAPACITY DIGITAL TELEPHONE EXCHANGES FIBEROPTIC SYSTEMS MOBILE TELECOMMUNICATIONS AND SATELLITE EQUIPMENT THE GOVERNMENT WILL OFFER INCENTIVES TO ATTRACT FOREIGN INVESTMENT BUT WON'T INVOLVE SUCH INVESTORS IN MANAGEMENT CHINA IN THE NEXT FEW MONTHS IS EXPECTED TO UNVEIL POLICIES TO GUARANTEE INVESTORS' RETURNS FACING GREATER COMPETITION FOR JOBS AND ADVANCEMENT IN SOUTH KOREA YOUNG MEN ARE UNDERGOING COSMETIC SURGERY TO HELP IMPROVE THEIR CHANCES PRIOR TO A JOB INTERVIEW A 25YEAROLD SALES EXECUTIVE HAD HIS EYELIDS RESHAPED TO GIVE HIS FACE MORE OF A WESTERN APPEARANCE AND HE GOT THE POST EXPLAINING THE TREND THAT BEGAN LAST YEAR A PERSONNEL MANAGER AT A BIG COMPANY SAID ACADEMIC GRADES PREVIOUSLY WERE EMPHASIZED IN HIRING BUT LOOKS HAVE GAINED IN IMPORTANCE POLAND'S GOVERNMENT AND EIGHT MAJOR TRADE UNIONS SIGNED A BROAD AGREEMENT GIVING WORKERS A SAY IN HOW STATEOWNED ENTERPRISES WILL BE SOLD OFF THE PACT WHICH REQUIRES PARLIAMENTARY APPROVAL INCLUDES TAX SOCIAL WELFARE AND PRIVATIZATION MEASURES IT IS AIMED AT AIDING MANAGEMENT AND BOOSTING WORKERS' SENSE OF RESPONSIBILITY FOR THEIR FIRMS THE ACCORD GIVES ALL STATE ENTERPRISES SIX MONTHS TO DECIDE THEIR PATH TO PRIVATIZATION EMPLOYEES WILL GET A 10 STAKE IN THEIR FIRMS AND IN LARGE COMPANIES BOARD SEATS A PRIVATIZATION TAX WILL BE REPLACED BY A 33 TAX ON EARNINGS THE GOVERNMENT AND NEW OWNERS MUST CREATE FUNDS TO PROTECT WORKERS IN COMPANY FAILURES MEANWHILE PRESIDENT LECH WALESA SIGNED A POLISH BUDGET FOR 1993 THAT AIMS TO REDUCE INFLATION TO 32 THIS YEAR FROM 44 LAST YEAR AND LEAD TO A DEBT PACT WITH THE INTERNATIONAL MONETARY FUND TAIWAN LAUNCHED A CRACKDOWN ON PIRATED FOREIGN FILMS RESPONDING TO DEMANDS BY THE US INTELLECTUAL PROPERTY PROTECTION ALLIANCE AND TRYING TO HEAD OFF ANY RETALIATORY TRADE MEASURES VIOLATORS COULD FACE PRISON TERMS THE ALLIANCE SAID TAIWAN COPYRIGHT VIOLATIONS OF FILMS COMPUTER SOFTWARE BOOKS AND COMPACT DISKS COST US FIRMS 699 MILLION LAST YEAR CHINA PASSED A CONSUMER PROTECTION LAW THAT ALLOWS THE DEATH PENALTY STARTING SEPT 1 FOR MAKERS OF FAKE MEDICINES OR PRODUCTS THAT CAUSE DEATHS 9302230071 930223 ABREAST OF THE MARKET INDUSTRIALS GAIN 2081 TO 334299 DESPITE HEALTHCARE STOCK SLUMP BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED HIGHER ACCORDING TO MAJOR MARKET AVERAGES BUT THERE WAS A SINISTER SIDE TO TRADING WHILE THE SESSION APPEARED PLEASANT ENOUGH FROM THE POINT OF VIEW OF OILSTOCK INVESTORS FOR EXAMPLE OTHERS WERE HORRIFIED BY THE CRASH OF STOCKS LINKED TO THE HEALTHCARE INDUSTRY THE DOW JONES INDUSTRIAL AVERAGE ENDED 2081 POINTS HIGHER TO CLOSE AT 334299 BELYING THE PAIN FELT BY MANY INVESTORS FEARS OF THE EFFECT PRESIDENT CLINTON'S HEALTHCARE REFORMS COULD HAVE ON THE INDUSTRY'S GALLOPING PROFIT GROWTH HAVE TRIGGERED WHOLESALE DUMPING OF STOCKS IN THAT GROUP AMONG THE WORST HIT MYLAN LABORATORIES FELL 4 5/8 POINTS TO 25 3/4 THE SHARES TRADED AS HIGH AS 37 5/8 THIS MONTH IN AN ATTEMPT TO STEM THE SELLING THE COMPANY SAID IT HAS ABSOLUTELY NO PROBLEMS AND EXPECTS TO REPORT RECORD REVENUE AND EARNINGS FOR THE YEAR ENDING IN MARCH MEDTRONIC WHICH TRADED AT 95 1/2 A MONTH AGO LOST 6 1/2 TO 70 1/2 US SURGICAL FELL 4 3/8 TO 57 1/8 THOM R BROWN MANAGING DIRECTOR OF RUTHERFORD BROWN & CATHERWOOD CALLED THE PANIC SELLING PREPOSTEROUS NOTING THAT MANY OF THE COMPANIES BEING ABANDONED MIGHT ACTUALLY BENEFIT FROM MR CLINTON'S PLAN TO EXPAND HEALTHCARE COVERAGE TO ALL AMERICANS IF WE'RE GOING TO MAKE HEALTH CARE MORE AVAILABLE TO THE MASSES SOMEONE IS GOING TO HAVE TO PROVIDE THAT HEALTH CARE MR BROWN SAID THE DAMAGE TO THE HEALTHCARE SECTOR PUT A DRAG ON THE BROADER MARKET WHICH LAGGED BEHIND THE INDUSTRIALS STANDARD & POOR'S 500STOCK INDEX ROSE 102 TO 43524 EQUAL TO ONLY ABOUT AN EIGHTPOINT GAIN BY THE DOW JONES INDUSTRIAL AVERAGE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 025 TO 23952 THE DOW JONES EQUITY MARKET INDEX GAINED 076 TO 41234 ADVANCING ISSUES EDGED OUT DECLINING ISSUES 1061 TO 935 BIG BOARD VOLUME TOTALED 311510000 SHARES UP SLIGHTLY FROM FRIDAY'S 307730000 SHARES THE BROADER MARKET WAS SAVED FROM THE SELLING THAT SWEPT THE HEALTHCARE SECTOR IN PART BECAUSE OF FALLING LONGTERM INTEREST RATES THE YIELD ON THE TREASURY'S 30YEAR BOND FELL DECISIVELY BELOW 7 BUYERS CHASED RATE SENSITIVE STOCKS AS A RESULT THE DOW JONES UTILITY INDEX FOR EXAMPLE GAINED 601 TO 24061 MANY BANK STOCKS RALLIED JP MORGAN JUMPED 2 3/4 TO 65 MERRILL LYNCH RAISED ITS INVESTMENT RATING ON THE SHARES TO NEARTERM BUY FROM ABOVE AVERAGE MORTGAGE COMPANY STOCKS SOARED INCLUDING GREEN TREE FINANCIAL WHICH WAS UP 1 5/8 TO 33 5/8 AND COUNTRYWIDE CREDIT INDUSTRIES WHICH ROSE 2 3/8 TO 32 OIL STOCKS AND THE SHARES OF OIL FIELD SERVICE COMPANIES BOTH SOARED AS CRUDE OIL AND NATURAL GAS PRICES CLIMBED MANY OF THE MAJOR OIL COMPANIES HAVE LARGE NATURAL GAS RESERVES SOME OF THE STOCKS ALSO GOT AN EXTRA BOOST BECAUSE THEY PAY BIG DIVIDENDS THAT LOOK INCREASINGLY ATTRACTIVE AS INTEREST RATES FALL GREG KUHN WHO HEADS AN EASTON PA ASSET MANAGEMENT COMPANY WITH HIS NAME SEES THE DOW JONES INDUSTRIAL AVERAGE ON ITS WAY TO A RECORD LARGELY ON THE STRENGTH OF THE ENERGY SECTOR AND OTHER ECONOMICALLY SENSITIVE SHARES HOWEVER MR KUHN WARNED THAT THE EMERGENCE OF SUCH LAGGARD GROUPS AS THE OIL STOCKS IS A SIGNAL THAT THE MARKET'S NEXT HIGH MIGHT BE ITS LAST BEFORE A SHARPER PULLBACK SETS IN WHEN THE LAGGARDS COME TO THE FOREFRONT THAT'S TYPICALLY A WARNING THAT YOU ARE CLOSE TO A CORRECTION OF GREATER THAN 10 MR KUHN SAID OTHER BIG DECLINERS IN THE HEALTHCARE SECTOR INCLUDED VALUE HEALTH A HEALTH MAINTENANCE ORGANIZATION WHICH FELL 5 5/8 TO 22 1/8 AND HAEMONETICS A MAKER OF BLOODHANDLING EQUIPMENT WHICH LOST 3 1/2 TO 18 BEVERLY ENTERPRISES WHICH OPERATES NURSING HOMES DROPPED 1 1/2 TO 10 ON HEAVY VOLUME STOCKS OF A NUMBER OF GENERIC DRUG MAKERS SLID IN ADDITION TO MYLAN LABORATORIES' PLUNGE COPLEY PHARMACEUTICAL SLUMPED 2 1/4 TO 30 IN A STATEMENT MYLAN SAID THERE SEEMS TO BE SOME CONCERN THAT IF THERE IS A CHANGE IN TAX RULES FOR COMPANIES WITH MANUFACTURING FACILITIES IN PUERTO RICO IT WILL HURT MYLAN THE COMPANY SAID ITS PUERTO RICAN OPERATION REPRESENTS LESS THAN 10 OF THE COMPANY'S TOTAL BUSINESS IN BOTH SALES AND EARNINGS TOBACCO STOCKS ALSO GOT BURNED ON FEARS OF WHAT PRESIDENT CLINTON MIGHT DO TO THE INDUSTRY THE ADMINISTRATION IS REPORTEDLY CONSIDERING LEVYING AN EXCISE TAX ON CIGARETTES TO HELP PAY FOR HEALTHCARE REFORM PHILIP MORRIS LOST 3 1/2 TO 64 1/2 RJR NABISCO FELL 1/4 TO 8 AND UST INC SLID 2 3/4 TO 26 1/4 ALL IN HEAVY TRADING HOTEL STOCKS GAINED HILTON GAINED 1 5/8 TO 45 5/8 MARRIOTT ROSE 1 1/8 TO 24 AND LA QUINTA MOTOR INNS ROSE 1/2 TO 26 1/4 UNITED INVESTORS MANAGEMENT GAINED 3 1/8 TO 30 AFTER TORCHMARK PROPOSED BUYING THE REMAINING 16 OF THE COMPANY THAT IT DOESN'T ALREADY OWN TORCHMARK SAID IT WOULD OFFER 3050 PRINCIPAL AMOUNT OF A NEW CONVERTIBLE DEBENTURE FOR EACH UNITED INVESTORS SHARE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 309 TO 39929 THERE WERE 343 DECLINERS AND 223 ADVANCERS SEARS ROEBUCK & CO ROSE 375 CENTS TO 53875 CENTS THE RETAILER'S INITIAL PUBLIC OFFERING OF 295 MILLION SHARES OF DEAN WITTER DISCOVER & CO WAS PRICED AT 27 A SHARE WELL ABOVE THE THE 23 TO 25 A SHARE THAT SEARS ORIGINALLY ANTICIPATED TRADING IS SCHEDULED TO BEGIN TODAY WITH DEAN WITTER DISCOVER LISTED ON THE NEW YORK AND PACIFIC STOCK EXCHANGES 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 9302230070 930223 MARKETING & MEDIA ADVERTISING INTERPUBLIC GROUP SHARES REFLECT WALL STREET WORRY OVER MCCANN BY KEVIN GOLDMAN FOR YEARS INTERPUBLIC GROUP OF COS HAS BEEN THE MADISON AVENUE DARLING ON WALL STREET IN THE TURBULENT ADVERTISING INDUSTRY INTERPUBLIC'S STOCK HAS BEEN A STEADY PERFORMER CASHING IN ON THE FIRM'S REPUTATION AS A FORMIDABLE COMPETITOR NOW INTERPUBLIC IS GETTING LESS THAN PERFECTLY GLOWING REVIEWS SINCE JAN 1 THE COMPANY'S SHARES ARE DOWN A TROUBLING 16 EVEN AS THE BROAD STANDARD & POOR'S INDEX OF 500 STOCKS IS DOWN ONLY 23 LAST WEEK SMITH BARNEY HARRIS UPHAM & CO LOWERED ITS RECOMMENDATION ON INTERPUBLIC TO A LUKEWARM HOLD FROM A BUY RECOMMENDATION LAST MONTH GOLDMAN SACHS ISSUED A REPORT LABELING THE COMPANY A MODERATE MARKET OUTPERFORMER BUT STOPPED SHORT OF URGING A SOLID BUY ON THE STOCK THE COMPANY'S SHARES HAVE BEEN SAGGING SO MUCH THAT PAINEWEBBER ANALYST ALAN GOTTESMAN YESTERDAY WENT THE OTHER DIRECTION UPGRADING HIS RECOMMENDATION TO A BUY FROM ATTRACTIVE MR GOTTESMAN REASONS ANYTIME YOU SEE FRONTLINE MERCHANDISE PUT ON SALE TELL YOUR CUSTOMERS TO THINK ABOUT BUYING IT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY INTERPUBLIC SHARES ROSE 375 CENTS TO 2875 IN THE WORLD OF ADVERTISING WHERE NEW CAMPAIGNS AND ACCOUNT SHIFTS MAKE HEADLINES ALMOST DAILY A COMPANY'S STOCK MOVEMENT DOESN'T EXACTLY GRAB ATTENTION BUT IN THE CASE OF INTERPUBLIC THE ANALYSTS' REPORTS ARE A SIGNIFICANT BAROMETER RESULTING FROM A DOSE OF UNWANTED ATTENTION LATELY INTERPUBLIC ENCOMPASSES THREE WORLDWIDE AGENCY NETWORKS MCCANNERICKSON LINTAS AND LOWE GROUP AND JUST ONE MCCANN HAS BEEN GIVING THE STOCK FITS OF TROUBLE AS WALL STREET FRETS OVER THE FATE OF THE SHOP'S 600 MILLION COCACOLA ACCOUNT NOW FIRMLY IN THE CREATIVE GRIP OF HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY ANALYSTS GOT OVERANXIOUS ON THE COCACOLA THING PHILIP H GEIER JR INTERPUBLIC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAYS IN AN INTERVIEW STOCK PRICES FOR ALL AD AGENCIES PLUNGED LAST WEEK SPARKED BY THE RELEASE OF INTERPUBLIC'S FOURTHQUARTER AND YEARLY EARNINGS BUT INTERPUBLIC SHARES ARE FARING WORST NET INCOME IN THE QUARTER ROSE A HEALTHY 14 TO 466 MILLION OR 62 CENTS A SHARE BUT REVENUE ROSE ONLY 2 TO 5341 MILLION AND THAT TROUBLED SOME OBSERVERS WHILE THE FIRM'S STOCK IS DOWN 16 SINCE THE START OF THE YEAR OMNICOM GROUP IS DOWN JUST 22 AND FOOTE CONE & BELDING COMMUNICATIONS STOCK IS UP 99 YET INTERPUBLIC'S MR GEIER REMAINS RELENTLESSLY OPTIMISTIC ALTHOUGH HE DECLINED TO OFFER SPECIFIC NUMBERS MR GEIER SAYS HE SEES A REBOUND IN INTERPUBLIC'S US BUSINESSES COMING THROUGH IN THE SECOND QUARTER AND CONTINUING THROUGH THE BALANCE OF 1993 WE DON'T SEE ANY MAJOR CONCERNS IN REGARD TO ADVERTISING BUDGETS NOT INCREASING AS THE YEAR GOES ALONG HE SAYS INDEED WALL STREET ANALYSTS STILL LIKE INTERPUBLIC'S PROSPECTS OVER THE LONGER HAUL I AM DISAPPOINTED WITH THE QUALITY OF INTERPUBLIC'S EARNINGS GAIN SAYS ALISON FOLINO AN ANALYST WITH SMITH BARNEY BUT I STILL LIKE THE COMPANY LONG TERM STILL NOT ALL IS WELL AT INTERPUBLIC MCCANNERICKSON IS JUST NOW EMERGING FROM THE EMBARRASSMENT IN THE COKEANDCAA LOVEFEST MCCANN COKE'S AD AGENCY SINCE THE 1950S PRODUCED ONLY ONE OF OVER TWO DOZEN NEW COMMERCIALS THAT ULTIMATELY WILL GET ON THE AIR DOMESTICALLY MCCANN MAY BE REDUCED TO THE ROLE OF MEDIA BUYER INSTEAD OF SOLID CREATIVE ENTITY INITIALLY MCCANN WILL STILL BE USED BY COCACOLA OUTSIDE THE US BUT MANY OF CAA'S COMMERCIALS CAN EASILY BE ADAPTED TO THE WORLDWIDE MARKET LINTAS RECEIVED A HEFTY BODY BLOW LAST YEAR WHEN IT LOST THE 60 MILLIONPLUS MASTERCARD ACCOUNT AND IT HASN'T ATTRACTED A COMPARABLE PIECE OF BUSINESS SINCE WATCHERS ON MADISON AVENUE BEGAN SPECULATING THAT LINTAS MIGHT LOSE CONTROL OF ITS PRIZED DIET COKE ACCOUNT TO THE INTERLOPERS AT CAA BUT FOR NOW THE SHOP APPEARS TO HAVE A STRONG HOLD ON DIET COKE WITH NEW ADS THAT ARE GETTING GOOD WORDOFMOUTH MORE IMPORTANT CAA DIDN'T MAKE THEM AND THE TALENT AGENCY SEEMS TO BE TOO BUSY RIGHT NOW TO GO AFTER THE LINTAS CLIENT LOWE GROUP IS INTERPUBLIC'S LONDONBASED CREATIVE SHOP AND IT HAD PURSUED THE COVETED GENERAL MOTORS ACCOUNT FOR OLDSMOBILE ADVERTISING AS A BACKDOOR WAY FOR INTERPUBLIC TO SNARE YET ANOTHER ASSIGNMENT FROM THE GIANT AUTOMAKER BUT LOWE WAS DISAPPOINTED WHEN IT FAILED TO GET THE FINAL NOD ON OLDSMOBILE WHICH INSTEAD STAYED WITH ITS INCUMBENT AD AGENCY LEO BURNETT NEITHER MR GEIER NOR MARVIN SLOVES SCALI'S CHAIRMAN AND CHIEF EXECUTIVE WOULD COMMENT YESTERDAY ON THE RUMORS WPP GROUP EXECUTIVES DIDN'T RETURN TELEPHONE CALLS TO THE COMPANY'S LONDON HEADQUARTERS HEALTHY IS DEFINITELY OUT AND THE CLEAR BANDWAGON HAS ARRIVED ACCORDING TO A SURVEY OF THE 110000 NEW TRADEMARK APPLICATIONS FILED TO THE US PATENT AND TRADEMARK OFFICE IN 1992 APPLICATIONS FOR TRADEMARKS CONTAINING THE WORD CLEAR WERE UP 77 IN 1992 WHILE THOSE CONTAINING THE WORD CRYSTAL WERE UP 43 OTHER HOT TERMS WERE BASIC UP 52 COUNTRY UP 32 AND HOME UP 8 ACCORDING TO THE SURVEY CONDUCTED BY THE LAW FIRM DECHERT PRICE & RHOADS OF PHILADELPHIA TRADEMARKS WITH THE WORDS HEALTH OR HEALTHY PLUMMETED 39 IN 1992 ACCORDING TO THE STUDY BUT THOSE MARKED FOR VALUE OR VALU WERE UP 40 WHILE MENTIONS OF PRICE WERE UP 29 HIPHOP TURNED UP TWICE AS OFTEN IN TRADEMARK APPLICATIONS LAST YEAR FROM SEVEN IN 1991 TO 14 IN 1992 GRUNGE APPEARED IN TWO APPLICATIONS LAST YEAR BORDEN WB DONER'S SOUTHFIELD MICH OFFICE SUCCESSFULLY DEFENDED ITS 10 MILLION SNACKFOOD ACCOUNT FOR BORDEN INC FOLLOWING A REVIEW INVOLVING SEVERAL UNDISCLOSED SHOPS DONER WILL CREATE ADS FOR THE COMPANY'S NEW BORDEN BRAND OF CHIPS AND SNACKS AS WELL AS FOR THE REGIONAL WISE AND JAYS BRANDS HBO PROMOTION CONAGRA IS OFFERING A FREE MONTH OF HOME BOX OFFICE PAYCABLE SERVICE TO PEOPLE WHO BUY BANQUET FROZEN DINNERS CONSUMERS WHO SEND SIX BANQUET PROOFS OF PURCHASE AND A COPY OF THEIR CABLE BILL RECEIVE A CHECK FOR THE COST OF THE SERVICE UP TO 1295 THE OFFER APPEARS ON BANQUET PACKAGES STARTING MONDAY HBO IS A UNIT OF TIME WARNER 9302230069 930223 HEARD ON THE STREET AS SMOKERS HUDDLE ON WHITE HOUSE CARPORT AND TAX RISE LOOMS PHILIP MORRIS IS ASHEN BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION'S VIEWS ON INHALING ARE THE LATEST PROBLEM FOR PHILIP MORRIS THE ONCEFASHIONABLE STOCK HAS DIVED 85 IN THE PAST TWO TRADING DAYS ON FEARS THAT HILLARY RODHAM CLINTON HAVING ALREADY BANNED SMOKING IN THE WHITE HOUSE WILL CALL FOR HIGHER CIGARETTE TAXES TO PAY FOR HEALTHCARE REFORM PHILIP MORRIS SANK 3 1/2 YESTERDAY ON VOLUME OF 95 MILLION SHARES FOUR TIMES HIGHER THAN NORMAL ON FRIDAY THE STOCK FELL 2 5/8 ON VOLUME OF SIX MILLION SHARES THE SHARES DID REBOUND LATE YESTERDAY AFTER BEING DOWN AS MUCH AS 6 ON WHAT SOME TRADERS ARE CALLING THE HILLARY FACTOR BUT EVEN WITH THE STOCK NOW PUMMELED TO A 52WEEK LOW OF 64 1/2 SOME BIG INVESTORS ARE SAYING THAT THE MARLBORO MAN'S ROUGH RIDE ISN'T OVER THE STOCK WAS WEAKENING EVEN BEFORE TRADERS BLANCHED AT THE SALESROBBING POTENTIAL OF HIGHER SIN TAXES ON TOBACCO THE COMPANY'S FLAGSHIP MARLBORO BRAND HAS BEEN LOSING GROUND TO SURGING SALES OF LOWPROFIT DISCOUNT SMOKES A SAVVY MARKETER PHILIP MORRIS TRIED TO PROTECT ITSELF WITH A MAJOR 1980S DIVERSIFICATION INTO FOODS BUT NOW IT IS ENDURING SLOW GROWTH IN ITS KRAFT GENERAL FOODS BUSINESS AS WELL AS FALLING PROFITS AT MILLER BREWING SALVOS KEEP RAINING DOWN FROM OUTSIDE THE COMPANY LAST WEEK MCDONALD'S SAID IT WILL TEST A SMOKING BAN IN 40 OUTLETS PERHAPS AS A FURTHER LURE TO ITS MOST FAMOUS CUSTOMER PRESIDENT CLINTON THERE IS A CERTAIN MOMENTUM ON THE DOWNSIDE RIGHT NOW SAYS DALTON AVERY AN ANALYST WITH INDEPENDENCE INVESTMENT ASSOCIATES A BOSTON PENSION FUND ADVISER IT PROBABLY GOES TO 60 HE PREDICTS OF THE STOCK TRY 58 FIGURES GARY LANGBAUM DIRECTOR OF RESEARCH FOR KEMPER FINANCIAL SERVICES IN CHICAGO WHO RECENTLY UNLOADED MORE THAN TWO MILLION SHARES THERE IS A CONFLICT BETWEEN WALL STREET ANALYSTS WHO CONTINUE TO RECOMMEND THE STOCK AND PORTFOLIO MANAGERS WHO ARE SELLING THE STOCK SAYS MR LANGBAUM A LOT OF PEOPLE AREN'T WILLING TO CONCEDE YET THAT PHILIP MORRIS IS ENTERING A PERIOD OF SLOWER GROWTH INDEED ZACKS INVESTMENT RESEARCH COUNTS 23 BUY RECOMMENDATIONS FOR THE STOCK ONE HOLD AND NOT A SINGLE SELL AMID THESE GLOWING APPRAISALS THE STOCK HAS LOST ONEFOURTH OF ITS VALUE SINCE FALL SOME PORTFOLIO MANAGERS ARE IGNORING THE BUY RECOMMENDATIONS NOBODY IS GOING TO GO NEAR IT RIGHT NOW SAID ROBERT HEALY A PORTFOLIO MANAGER FOR IDS FINANCIAL SERVICES AN AMERICAN EXPRESS DIVISION IN MINNEAPOLIS FOR ANALYSTS RECOMMENDING PHILIP MORRIS RIGHT NOW IS NOT VERY MUCH FUN SAYS S LEIGH FERST A PRUDENTIAL SECURITIES ANALYST BUT PRUDENTIAL IS STILL RECOMMENDING THE STOCK IT LOOKS MORE ATTRACTIVE AT A LOWER PRICE SAID MS FERST WHO SAYS THE TAX FEARS ARE OVERBLOWN HEALTH WATCHDOG GROUPS HAVE BEEN CLAMORING FOR WEEKS FOR A BOOST IN FEDERAL TOBACCO TAXES RAISING PRICES IS THE SINGLE BEST WAY TO PERSUADE SMOKERS TO QUIT THEY SAY AND THE IDEA ALSO SERVES UP A CERTAIN KIND OF ECONOMIC JUSTICE GIVEN THAT SMOKINGRELATED DEATHS AND DISEASES ADD BILLIONS OF DOLLARS TO THE NATION'S EVERRISING HEALTH BILL WHY NOT MAKE SMOKERS AND TOBACCO SELLERS ANTE UP BUT THE ANTISMOKING FORCES' CLOUT INCREASED AFTER MRS CLINTON BANNED SMOKING IN THE WHITE HOUSE AND THEN ASSUMED CONTROL OF THE ADMINISTRATION'S HEALTHCARE REFORM GROUP IT BEGAN CIRCULATING WORKING PAPERS CITING TOBACCO TAXES AS A GOOD MECHANISM FOR PAYING FOR HEALTHCARE REFORM SHORTSELLERS HAVE BEEN CIRCLING AROUND PHILIP MORRIS LATELY THE AMOUNT OF THE STOCK SOLD SHORT WAS UP 24 IN MIDFEBRUARY FROM A MONTH EARLIER TO 24 MILLION SHARES A SHORT SALE IS A BET THAT A STOCK PRICE WILL DECLINE THIS IS DONE BY BORROWING STOCK AND IMMEDIATELY SELLING IT WITH THE GOAL OF RETURNING CHEAPER SHARES TO THE LENDER LATER ON YET A LARGE EXCISETAX BOOST ON TOBACCO ISN'T A CERTAINTY THE TOBACCO LOBBY REMAINS WELLFINANCED AND WELLCONNECTED AND IT WILL FIGHT ANY NEW CIGARETTE TAX AS REGRESSIVE AND AS AN UNDUE BURDEN ON BLUECOLLAR WORKERS WHO ARE LIKELIER TO SMOKE THAN EXECUTIVES EVEN ASIDE FROM A TAX JUMP HOWEVER SOME INVESTORS BELIEVE THE HEADY GROWTH DAYS OF PHILIP MORRIS ARE GONE PART OF THE DOWNWARD PRESSURE ON THE COMPANY'S STOCK HAS COME FROM INVESTORS ABANDONING THE BIG CONSUMERGOODS STOCKS THAT OUTPERFORMED THE MARKET IN THE 1980S LED BY PHILIP MORRIS THE CONSUMER STOCKS OUTPACED THE MARKET IN 10 OF THE PAST 12 YEARS BUT WITH POPULATION GROWTH SLOWING AND PRICE RISES VERY DIFFICULT TO COME BY MANY BELIEVE A MORE PEDESTRIAN FUTURE AWAITS PHILIP MORRIS AND ITS ILK 9302230068 930223 WHO'S NEWS MONTGOMERY WARD'S LEVY QUITS 2 POSTS FISHKIN IS PROMOTED CHICAGO MONTGOMERY WARD & CO SAID ITS VICE CHAIRMAN AND CHIEF OPERATING OFFICER DANIEL H LEVY RESIGNED TO DO SOME OTHER THINGS IN HIS CAREER MR LEVY 49 YEARS OLD JOINED WARD FIVE YEARS AGO FROM GIMBELS PITTSBURGH WHERE HE WAS CHAIRMAN TO HEAD THE DISCOUNT RETAILER'S HOMEPRODUCTS GROUP HE LATER OVERSAW THE APPAREL GROUP AS WELL AND IN JANUARY 1991 WAS NAMED WARD'S SECONDINCOMMAND IN SEPTEMBER HOWEVER CHAIRMAN BERNARD F BRENNAN NAMED FORMER RH MACY & CO EXECUTIVE HAROLD KAHN AS PRESIDENT EFFECTIVELY BUMPING MR LEVY TO THE COMPANY'S NO 3 SPOT MR LEVY SAID HIS RESIGNATION WAS ABSOLUTELY NOT SPARKED BY ANY RANCOR WITH WARD'S TOP EXECUTIVES I WANTED TO DO OTHER THINGS AND YOU CAN'T DO OTHER THINGS IF YOU CONTINUE TO WORK FULLTIME FOR MONTGOMERY WARD MR LEVY SAID HE DECLINED TO PROVIDE SPECIFICS ABOUT HIS PLANS TO ASSUME MR LEVY'S RESPONSIBILITIES AS HEAD OF THE HOMEPRODUCTS GROUP WARD NAMED STEVEN L FISHKIN 54 AS EXECUTIVE VICE PRESIDENT OF THAT GROUP MR FISHKIN FORMERLY WAS SENIOR VICE PRESIDENT MARKETING AND SALES OF LOUI MICHEL CIE A BOCA RATON FLA MAKER OF DECORATIVE PHOTO FRAMES MR KAHN WARD'S PRESIDENT WILL ASSUME THE REMAINDER OF MR LEVY'S DUTIES ADDITIONALLY THE RETAILER NAMED SPENCER HEINE 50 AS CHAIRMAN OF ITS SIGNATURE DIRECTMARKETING UNIT A NEW POST MR HEINE HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THAT UNIT HE RETAINS THE CHIEF EXECUTIVE POST AND ALSO CONTINUES AS WARD'S EXECUTIVE VICE PRESIDENT LEGAL AND FINANCIAL SERVICES AS PRESIDENT MR HEINE IS SUCCEEDED BY RICHARD C GALLAGHER 52 FORMERLY A SENIOR VICE PRESIDENT FOR FIRST NATIONAL BANK OF CHICAGO MR GALLAGHER ALSO WAS NAMED CHIEF OPERATING OFFICER OF SIGNATURE A NEW POST LOUI MICHEL CIE A MAKER OF DECORATIVE FRAMES IS BASED IN GARDENA CALIF IN A WHO'S NEWS ARTICLE TUESDAY ABOUT MONTGOMERY WARD & CO LOUI MICHEL WAS INCORRECTLY IDENTIFIED AS BEING BASED IN BOCA RATON FLA 9302230067 930223 BUSINESS BRIEF PERKINELMER CORP COMPANY'S PROFIT ROSE 85 FOR FISCAL SECOND QUARTER PERKINELMER CORP SAID ITS FISCAL SECONDQUARTER PROFIT ROSE 85 HELPED BY STRENGTH IN ITS CORE BUSINESS IN ANALYTICAL INSTRUMENTS FOR THE PERIOD ENDED JAN 31 THE COMPANY SAID IT HAD PROFIT OF 178 MILLION OR 52 CENTS A SHARE COMPARED WITH 164 MILLION OR 48 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 65 TO 2436 MILLION FROM 2287 MILLION EXCLUDING A 33 MILLION GAIN ON THE SALE OF A JOINT VENTURE IN THE YEAREARLIER PERIOD PERKINELMER SAID ITS PRETAX PROFIT ROSE 22 FOR THE QUARTER ORDERS ROSE TO 2409 MILLION FROM 2383 MILLION PERKINELMER STRUCK A MILDLY OPTIMISTIC TONE ABOUT THE FUTURE CITING POSITIVE SIGNS IN ITS US MARKETS IN CERTAIN PARTS OF EUROPE AND IN ASIA OUTSIDE JAPAN BUT THE NORWALK CONN COMPANY ALSO CAUTIONED THAT IT SEES NEGATIVE CURRENCY TRENDS AND ECONOMIC UNCERTAINTY AND SAID THERE IS NO SIGN OF A TURNAROUND IN ITS MATERIALSCIENCES BUSINESS THE COMPANY ALSO SAID IT COMPLETED THURSDAY ITS MERGER WITH APPLIED BIOSYSTEMS INC A MAKER OF BIOCHEMICALS AND RESEARCH INSTRUMENTS IN A STOCK SWAP 9302230066 930223 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 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 CORP3 30 TO 39 DAYS 304 40 TO 59 DAYS 306 60 TO 119 DAYS 308 120 TO 149 DAYS 310 150 TO 179 DAYS 313 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 313 30 DAYS 314 60 DAYS 316 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 282 SIX MONTHS 302 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 306 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 301 60 DAYS 302 90 DAYS 304 120 DAYS 307 150 DAYS 308 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 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 737 60 DAYS 746 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 730 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 535 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 284 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302230065 930223 FOREIGN EXCHANGE YEN RISES FURTHER WEAKENING DOLLAR AGAINST EUROPEAN CURRENCIES AS WELL BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN GALLOPED STILL HIGHER YESTERDAY DEALERS SAID INVESTORS CONTINUED TO BID FOR THE JAPANESE CURRENCY IN THE WAKE OF US TREASURY SECRETARY LLOYD BENTSEN'S CALL FRIDAY FOR A STRONGER YEN TO REDUCE THE TRADE IMBALANCE BETWEEN THE US AND JAPAN THE DOLLAR LOST GROUND AGAINST EUROPEAN CURRENCIES AS WELL WEIGHED DOWN BY THE YEN'S GAINS GROWING TENSION IN EUROPE'S EXCHANGE RATE MECHANISM ALSO HELPED TO MOVE THE MARK HIGHER AGAINST THE DOLLAR DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16235 MARKS OFF FROM 16378 MARKS LATE FRIDAY IN NEW YORK THE DOLLAR ALSO WAS TRADING AT 11640 YEN DOWN 16 FROM 11822 YEN IT TRADED AS LOW AS 11594 YEN A HISTORIC LOW YESTERDAY STERLING WAS TRADING AT 14580 UP FROM 14535 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11653 YEN AND AT 16165 MARKS WE'RE NOT TRADING ON FUNDAMENTALS HERE SAID GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK IN NEW YORK THE SHORTTERM SPECULATORS ARE PROBABLY DOING THIS PLAYERS QUESTIONED WHETHER A STRONGER YEN WOULD HAVE MUCH EFFECT ON THE TRADE IMBALANCE BUT THEY SAID THE CHANCE THAT GROUP OF SEVEN LEADERS MEETING THIS WEEKEND IN LONDON MIGHT ADD TO THE CHORUS SUPPORTING THE YEN HAS MADE THE CURRENCY TOO ATTRACTIVE TO PASS UP DEALERS NOTED THAT THE FEAR OF CENTRAL BANK ACTION TO SLOW OR REVERSE THE MOVE MADE SELLERS NERVOUS ABOUT TAKING THE DOLLAR EACH NEW STEP LOWER YESTERDAY DEALERS SAID THERE WAS NO SIGN OF CENTRALBANK ACTION YESTERDAY BUT THEY NOTED THAT JAPANESE OFFICIALS CAME OUT IN FORCE TO TALK THE MARKET OUT OF SELLING THE DOLLAR TOO HARD FINANCE MINISTER YOSHIRO HAYASHI TOLD A SPECIAL NEWS CONFERENCE THAT THE YEN'S RECENT MOVES HAVE BEEN SPECULATIVE ADDING THAT NOW MORE THAN EVER CURRENCY MARKETS MUST BE WATCHED CLOSELY HE REFUSED TO BE DRAWN OUT ON THE ISSUE OF CONCERTED G7 INTERVENTION HOWEVER THE YEN'S STRENGTH AGAINST THE DOLLAR UNDERMINED THE US CURRENCY AGAINST MANY OF ITS EUROPEAN COUNTERPARTS AS WELL DEALERS SAID BUT PLAYERS NOTED THAT THE DOLLAR'S RECENT TRADING RANGE AGAINST THE MARK HELD YESTERDAY AS SELLERS FAILED TO DRIVE THE DOLLAR BELOW 16200 MARKS SOME OF THE MARK'S GAINS AGAINST THE DOLLAR CAME FROM GROWING TENSIONS IN THE ERM DEALERS SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK SAID HEAVY SELLING PRESSURE ON THE SPANISH PESETA SPURRED BY CONCERNS ABOUT SPAIN'S ECONOMY RENEWED PRESSURES IN THE SYSTEM LATE IN NEW YORK THE MARK WAS QUOTED AT 7310 PESETAS UP FROM 7180 PESETAS FRIDAY THE PESETA'S ERM FLOOR OF 7720 PESETAS WAS NOT APPROACHED YESTERDAY BUT DEALERS SAID THE BANK OF SPAIN INTERVENED HEAVILY IN EUROPEAN TRADING TO STABILIZE THE CURRENCY MR ARNOLD NOTED THAT GROWING UNEMPLOYMENT AND INFLATION IN SPAIN ARE SEEN AS THREATENING THE ABILITY OF THE GOVERNMENT TO KEEP THE PESETA WITHIN THE ERM AGAINST THE YEN DEALERS SAID THE DOLLAR'S OUTLOOK ISN'T SO SANGUINE AS LONG AS US OFFICIALS APPEAR TO BACK ITS RISE DEALERS SAID THE G7 MEETING ISN'T LIKELY TO TARGET A SPECIFIC LEVEL FOR THE CURRENCY BUT IT ALSO WON'T REPUDIATE THE YEN'S RISE MR SAKAMOTO OF NATIONAL WESTMINSTER SAID G7 OFFICIALS PROBABLY WANT TO KEEP THE DOLLAR BETWEEN 110 AND 120 YEN BUT DEALERS SAID CENTRAL BANKS COULD STEP IN TO STEADY THE MARKET IF THE DOLLAR DROPS BELOW 115 YEN BEFORE THE MEETING 9302230064 930223 INTERNATIONAL BRIEF CHUGAI PHARMACEUTICAL CO JAPANESE DRUG MAKER POSTS 39 RISE IN '92 PRETAX PROFIT CHUGAI PHARMACEUTICAL CO A JAPANESE DRUG MAKER SAID UNCONSOLIDATED PRETAX PROFIT FOR 1992 ROSE 39 TO 1465 BILLION YEN 1237 MILLION FROM 1058 BILLION YEN A YEAR EARLIER NET INCOME ROSE 27 TO 525 BILLION YEN FROM 413 BILLION YEN ON A SALES INCREASE OF 75 TO 14321 BILLION YEN FROM 13325 BILLION YEN CHUGAI SAID THAT ALTHOUGH MARKET CONDITIONS WERE TOUGH WITH AN AVERAGE 81 DROP IN DRUG PRICES DUE TO GOVERNMENTMANDATED CUTS SOME OF ITS PHARMACEUTICAL PRODUCTS WERE STRONG SELLERS THE COMPANY SAID IT EXPECTS TO SEE REVENUE AND PROFITS RISE IN THE CURRENT YEAR DUE TO BRISK SALES OF EPOGIN A DRUG THAT BOOSTS RED BLOOD CELL PRODUCTION AND NEUTROGIN WHICH HELPS RESTORE WHITE BLOOD CELLS FOR 1993 CHUGAI SAID PRETAX PROFIT LIKELY WILL RISE 16 TO 17 BILLION YEN 9302230063 930223 CLINTON PLANS EXPANDED ROLE ON TECHNOLOGY US WOULD SHIFT FUNDS FROM DEFENSE RESEARCH BACK SPECIFIC PROJECTS BY BOB DAVIS AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT CLINTON CAMPAIGNING FOR HIS ECONOMIC PACKAGE IN HIGHTECH SILICON VALLEY UNVEILED AN INDUSTRIAL POLICY IN WHICH THE GOVERNMENT WOULD EXPLICITLY BACK THE DEVELOPMENT OF COMMERCIALLY USEFUL TECHNOLOGY THE BUSH ADMINISTRATION HAD DISPARAGED SUCH EFFORTS AS PICKING WINNERS AND LOSERS BUT A 36PAGE INITIATIVE ENDORSED BY MR CLINTON AND VICE PRESIDENT ALBERT GORE PREDICTED THAT WE CAN PROMOTE TECHNOLOGY AS A CATALYST FOR ECONOMIC GROWTH BY SUPPORTING THE DEVELOPMENT COMMERCIALIZATION AND DEPLOYMENT OF NEW TECHNOLOGY MR CLINTON ANNOUNCED THE POLICY YESTERDAY AFTER TOURING THE SILICON GRAPHICS INC COMPUTER PLANT IN MOUNTAIN VIEW CALIF LATER IN EVERETT WASH THE PRESIDENT CITED WAYS TO BOOST THE NATION'S SUFFERING AEROSPACE INDUSTRY THE PRESIDENT'S TECHNOLOGY PLAN WOULD SHIFT BILLIONS OF DOLLARS FROM MILITARY RESEARCH FUNDS TO CIVILIAN PURPOSES AND ALSO FUND A VARIETY OF PROJECTS IN MANUFACTURING NEXTGENERATION AUTOMOBILES AND COMPUTER NETWORKS THE PROGRAM ECHOED A NUMBER OF THEMES FROM MR CLINTON'S ELECTION CAMPAIGN BUT WENT BEYOND THEM AS WELL FOR INSTANCE THE PRESIDENT CALLED FOR THE CREATION OF SOCALLED INFORMATION SUPERHIGHWAYS A PET PROJECT OF MR GORE'S WHEN HE WAS A SENATOR AND ONE WHICH THE TWO MEN PROMOTED THROUGHOUT THE CAMPAIGN UNDER THE PROGRAM THE FEDERAL GOVERNMENT WOULD MAKE GRANTS TO SCHOOLS LIBRARIES AND OTHER NONPROFIT ORGANIZATIONS SO THEY CAN DEVELOP WAYS IN WHICH TO USE A HIGHSPEED COMPUTER NETWORK FOR EDUCATIONAL PURPOSES MR CLINTON BACKED NEW PROGRAMS AS WELL TO SIGNAL HIS COMMITMENT TO COMMERCIAL TECHNOLOGY PART OF THE MESSAGE WAS SYMBOLIC HE SAID HE WOULD STRIP THE WORD DEFENSE FROM THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY SIGNIFYING THE LIKELIHOOD THAT DEFENSE RESEARCH CAN LEAD TO CIVILIAN PRODUCT OPPORTUNITIES OVERALL THE PRESIDENT SAID HE WOULD SHARPLY INCREASE SPENDING FOR CIVILIAN RESEARCH AND DEVELOPMENT BY ABOUT 31 TO 366 BILLION IN FISCAL 1998 FROM 279 BILLION CURRENTLY THOUGH HE DIDN'T PROVIDE ALL THE RESEARCH BUDGET NUMBERS IT'S CLEAR THAT A GOOD CHUNK OF THAT MONEY IS TO COME FROM DEFENSE RESEARCH WHICH IS SLATED TO DROP ABOUT 9 IN THE SAME PERIOD TO ROUGHLY 366 BILLION IN FISCAL 1998 FROM ABOUT 401 BILLION CURRENTLY MR CLINTON SAID DEFENSE AND CIVILIAN RESEARCH FUNDING WOULD BE ABOUT EQUAL BY 1998 THE FIRST TIME THEY WERE EQUAL SINCE THE FIRST YEAR OF THE REAGAN ADMINISTRATION WHICH BOOSTED DEFENSE RESEARCH ENORMOUSLY THE CLINTON POLICY REPRESENTS A SIGNIFICANT SHIFT IN WHAT THE GOVERNMENT DEEMS THE APPROPRIATE USE OF GOVERNMENT RESEARCH DOLLARS UNDER THE BUSH ADMINISTRATION OFFICIALS WERE SUPPOSED TO LIMIT COMMERCIALTECHNOLOGY SPENDING TO PRECOMPETITIVE AND GENERIC RESEARCH PROJECTS MEANING THOSE THAT ARE AT THE EARLY STAGES OF RESEARCH AND WEREN'T MEANT TO PRODUCE PRODUCTS THAT COULD BE MARKETED EVEN THOUGH A NUMBER OF BUSH INITIATIVES IN COMPUTERS MATERIALS AND AUTO BATTERIES CLEARLY WENT BEYOND THOSE GUIDELINES THE PAST ADMINISTRATION WAS VIGILANT IN TRYING TO RESTRICT FEDERAL INVOLVEMENT IN PROJECTS IT BELIEVED SHOULD BE PAID FOR BY PRIVATE INDUSTRY BY CONTRAST PRESIDENT CLINTON ARGUES THAT THE GOVERNMENT HAS AN IMPORTANT ROLE IN NOT ONLY RESEARCHING NEW TECHNOLOGY BUT ALSO TURNING IT INTO USEFUL PRODUCTS WHAT YOU DO IS FUND THE MOST ATTRACTIVE PROPOSALS IN TERMS OF THE PUBLIC INTEREST AND THE OPPORTUNITY FOR ECONOMIC SPURS SAID JOHN GIBBONS WHITE HOUSE SCIENCE ADVISER BUT THE POLICY DOESN'T GO AS FAR AS SOME PROPONENTS OF INDUSTRIAL POLICY WOULD LIKE FOR INSTANCE IT DOESN'T ENDORSE PLANS IN WHICH THE GOVERNMENT WOULD FORM VENTURE CAPITAL FUNDS TO FINANCE THE PRODUCTION OF NEW PRODUCTS THE ELECTRONICS INDUSTRY HAD UNSUCCESSFULLY SOUGHT SUCH FUNDING DURING THE BUSH ADMINISTRATION TO SET UP MANUFACTURING OF NEXTGENERATION TELEVISION SETS THE PLAN DOES HOWEVER ENVISION USING THE PURCHASING POWER OF THE PENTAGON AND OTHER GOVERNMENT AGENCIES TO HELP BANKROLL NEW TECHNOLOGIES THE CLINTON PLAN NOTED THAT THE PENTAGON AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BOUGHT MORE THAN 50 OF THE NATION'S COMPUTER HARDWARE AS LATE AS 1962 NURTURING THE INDUSTRY UNTIL A BIGGER COMMERCIAL MARKET DEVELOPED SIMILARLY GOVERNMENT AGENCIES NOW SHOULD INVEST IN AND PROCURE ADVANCED TECHNOLOGIES THE PLAN SAID IN ORDER TO FACILITATE THEIR COMMERCIALIZATION CLAUDE BARFIELD A TECHNOLOGY ANALYST AT THE CONSERVATIVE AMERICAN ENTERPRISE INSTITUTE ARGUED THAT THE CLINTON PROGRAM WOULD WASTE MONEY BETTER USED FOR DEFICIT REDUCTION THE NEW RESEARCH PROJECTS HE PREDICTED WOULD BECOME CAPTIVE OF POWERFUL INDUSTRIES AND THE LAWMAKERS THAT PROTECT THEIR INTERESTS YOU'LL GET MARAUDING EXPEDITIONS HE WARNED THE CLINTON PLAN TRIES TO ADDRESS THE CONCERN ABOUT PORKBARREL POLITICS BY DIRECTING THAT NEW PROJECTS BE SELECTED ON THE BASIS OF MERIT AFTER BEING EVALUATED BY PANELS OF EXPERTS IN ADDITION A NUMBER OF THE PROGRAMS WOULD CALL FOR MATCHING GRANTS BY INDUSTRIES IN AN ATTEMPT TO ENSURE THAT COMPANIES DON'T SUBSTITUTE FEDERAL FUNDS FOR RESEARCH MONEY THAT COMPANIES WOULD HAVE SPENT ANYWAY NEVERTHELESS THE PLAN CLEARLY FAVORS A NUMBER OF INDUSTRIES INCLUDING ELECTRONICS AND AUTOMOBILES IN ELECTRONICS MR CLINTON BACKS CONTINUED FUNDING FOR SEMATECH A SEMICONDUCTOR RESEARCH CONSORTIUM IN AUSTIN TEXAS WHICH CURRENTLY GETS 100 MILLION ANNUALLY ACCORDING TO SEMATECH'S ORIGINAL PLANS ITS FEDERAL FUNDING WAS SUPPOSED TO END THIS FISCAL YEAR THE PLAN ALSO BACKS THE INFORMATION SUPERHIGHWAYS PROJECT WHICH PUMPS MONEY INTO THE COMPUTER AND TELECOMMUNICATIONS INDUSTRIES AND IT WOULD INCREASE FUNDS FOR SOCALLED SMART HIGHWAYS WHICH WOULD USE ADVANCED ELECTRONICS TO ROUTE CARS AROUND TRAFFIC PROBLEMS IN AUTOMOBILES THE PLAN ENVISIONS GOVERNMENTINDUSTRY PROJECTS TO DEVELOP FUELCELLS ADVANCED GASSTORAGE SYSTEMS AND ALTERNATIVE FUELS IN AN EFFORT TO CREATE A CLEAN CAR THE TECHNOLOGY INITIATIVE DOESN'T MAKE MUCH MENTION OF AERONAUTICS BUT MR CLINTON CLEARLY RANKS IT AS A TOP PRIORITY DURING HIS STOP IN WASHINGTON STATE THE PRESIDENT SOUGHT TO LEAVE THE STRONG IMPRESSION WITH BOEING WORKERS THAT HE WOULDN'T SIT BY IDLY WHILE THEY LOSE JOBS HE SAID HIS ECONOMIC PLAN CONTAINS 8 BILLION IN NEW INVESTMENTS IN AERONAUTICS OVER THE NEXT FIVE YEARS AND HE SAID HE HAD INSTRUCTED US TRADE REPRESENTATIVE MICKEY KANTOR TO CLOSELY MONITOR THE AGREEMENT MADE LAST YEAR TO LIMIT EUROPEAN SUBSIDIES TO AIRBUS INDUSTRIE A LOT OF LAYOFFS WOULD NOT HAVE BEEN ANNOUNCED HAD IT NOT BEEN FOR THE 26 BILLION THAT THE US SAT BY AND LET EUROPE PLOW INTO AIRBUS OVER THE LAST SEVERAL YEARS MR CLINTON SAID SO WE'RE GOING TO TRY TO CHANGE THE RULES OF THE GAME 9302230062 930223 BUSINESS BRIEF HURCO COS CONCERN SUSPENDS DIVIDEND POSTS LOSS FOR 1ST QUARTER HURCO COS SUSPENDED ITS COMMON STOCK DIVIDEND AND REPORTED A FIRSTQUARTER LOSS OF 22 MILLION OR 41 CENTS A SHARE COMPARED WITH EARNINGS OF 54000 OR ONE CENT A SHARE A YEAR AGO REVENUE FELL 21 TO 168 MILLION FROM 212 MILLION THE INDIANAPOLISBASED MACHINETOOL MAKER HAD BEEN PAYING A QUARTERLY DIVIDEND OF TWO CENTS BUT AGREED TO THE SUSPENSION AS PART OF A RENEGOTIATION OF LOAN COVENANTS WITH LENDERS INCLUDING THE NATIONAL BANK OF DETROIT BRIAN MCLAUGHLIN PRESIDENT AND CHIEF EXECUTIVE OFFICER ALSO SAID THE COMPANY CONTINUES TO REDUCE COSTS AND IS CLOSING ITS PHOENIX ARIZ PLANT AND MERGING OPERATIONS WITH THOSE IN INDIANAPOLIS EMPLOYMENT IS DOWN ABOUT 14 FROM A YEAR AGO HE SAID MR MCLAUGHLIN ALSO SAID THAT DESPITE CONTINUED DIFFICULTY IN EUROPE HE HOPES THE COMPANY CAN RETURN TO PROFITABILITY LATER THIS FISCAL YEAR 9302230061 930223 BUSINESS BRIEF CULBRO CORP UNIT COMPLETES ACQUISITION FOURTHQUARTER LOSS POSTED CULBRO CORP SAID ITS ELI WITT CO DISTRIBUTION UNIT COMPLETED THE ACQUISITION OF CERTIFIED GROCERS OF FLORIDA INC OCALA FLA SEPARATELY CULBRO REPORTED A LOSS OF 898000 FOR ITS FISCAL FOURTH QUARTER ENDED NOV 28 THE NEW YORK TOBACCO AND CONSUMER PRODUCTS CONCERN SAID ITS FOURTHPERIOD AMOUNTED TO 21 CENTS A SHARE THE COMPANY EARNED 29 MILLION OR 68 CENTS A SHARE IN THE PERIOD ENDED NOV 30 1991 THE 1992 FOURTH QUARTER INCLUDES A 35 MILLION RESTRUCTURING CHARGE AT ELI WITT NOW 85OWNED BY CULBRO IN ANTICIPATION OF ITS MERGER WITH CERTIFIED GROCERS WHICH WAS COMPLETED FRIDAY THE YEAREARLIER QUARTER INCLUDES A 57 MILLION BENEFIT FROM LOWER INVENTORIES FOR THE YEAR CULBRO POSTED PROFIT OF 19 MILLION OR 43 CENTS A SHARE A 41 DROP FROM 32 MILLION OR 74 CENTS A SHARE IN FISCAL 1991 ALONG WITH THE 1991 FOURTHQUARTER BENEFIT THE 1991 FULLYEAR RESULTS INCLUDE 99 MILLION IN BENEFITS FROM LOWER INVENTORIES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CULBRO WAS QUOTED AT 17 UNCHANGED 9302230060 930223 MARKETING BRIEF CENTURY PARK PICTURES CORP GLOBETROTTERS OTHER ASSETS ARE SOUGHT FOR 10 MILLION CENTURY PARK PICTURES CORP MINNEAPOLIS SAID IT BID 10 MILLION TO ACQUIRE THE HARLEM GLOBETROTTERS BASKETBALL TEAM AND OTHER ASSETS OF INTERNATIONAL BROADCASTING CORP WHICH IS IN BANKRUPTCY PROCEEDINGS THOMAS K SCALLEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CENTURY HAD HELD THOSE SAME POSITIONS AT INTERNATIONAL BROADCASTING THE MINNEAPOLIS BUSINESSMAN SAID HE OWNS ABOUT 13 OF INTERNATIONAL BROADCASTING AND HOLDS ABOUT 40 OF CENTURY ONCE PART OF INTERNATIONAL BROADCASTING THE OFFER IS SUBJECT TO APPROVAL BY NATIONAL WESTMINSTER BANK USA THE PRIMARY SECURED CREDITOR OF INTERNATIONAL BROADCASTING WHICH FILED A CHAPTER 11 BANKRUPTCY PETITION IN 1991 OTHER PROPERTIES CENTURY SEEKS INCLUDE THE ICE CAPADES ICE SHOW CERTAIN SKATING SCHOOLS AND RINKS IN SHOPPING MALLS AND A MINNEAPOLISAREA DINNER THEATER 9302230059 930223 WORLD MARKETS TOKYO STOCKS SINK FROM CURRENCY PRESSURES LONDON PRICES HURT BY US DRUGPOLICY OUTLOOK A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES SKIDDED BROADLY MONDAY AS THE YEN HIT NEW HIGHS AGAINST THE DOLLAR AND A LATE WAVE OF ARBITRAGE SELLING TOOK ITS TOLL LONDON SHARES FINISHED MIXED TO LOWER AS PHARMACEUTICAL ISSUES CAME UNDER PRESSURE FROM POSSIBLE US HEALTHSECTOR REFORMS AN EFFECT THAT RIPPLED THROUGH OTHER EUROPEAN BOURSES AND FROM WORRIES ABOUT NEW BRITISH STOCKRIGHTS ISSUES FRANKFURT'S MAIN INDEX EDGED UP TO A NEW 1992 HIGH THOUGH BLUE CHIPS ENDED MIXED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 2789 POINTS FRIDAY SLUMPED 18942 OR 11 TO 1682061 WHICH ALSO WAS THE INTRADAY LOW ALMOST HALF THE DROP WAS CAUSED BY ARBITRAGE SELLING IN THE FINAL 10 MINUTES OF TRADING ON TUESDAY IN TOKYO THE NIKKEI ROSE 6341 POINTS TO CLOSE THE MORNING SESSION AT 1688402 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN FROM 2216 MILLION SHARES ON FRIDAY LOSERS TROUNCED GAINERS 687236 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EDGED UP 094 POINT FRIDAY LOST 1015 TO 128391 THE NIKKEI WAS IN THE PLUS COLUMN IN THE LATE MORNING AND EARLY AFTERNOON BUT INVESTOR CONFIDENCE WANED AS THE YEN'S STRENGTH FURTHER DOGGED SHARES OF EXPORTORIENTED COMPANIES FIRMNESS OF THE CURRENCY SQUEEZES RETURNS FROM OVERSEAS SALES THE CURRENCY SITUATION IS LIKELY TO PINCH THOSE FIRMS' EARNINGS WHICH ALREADY HAVE BEEN STRAINED BY WEAK ECONOMIES AND ANEMIC CONSUMER DEMAND IN JAPAN AND ABROAD STOCKS SENSITIVE TO INTEREST RATES SCORED SOME GAINS ON TALK THAT RATES MIGHT BE REDUCED IF THE YEN HOLDS TOUGH COMMENTS BY JAPANESE OFFICIALS OFFERED LITTLE TO SOOTHE JITTERY INVESTORS FINANCE MINISTER YOSHIRO HAYASHI DIDN'T GIVE ANY INDICATION THAT THE GOVERNMENT WAS POISED TO ACT IN RESPONSE TO RECENT CURRENCY MOVEMENTS AND A BANK OF JAPAN OFFICIAL SAID YEN GAINS AGAINST THE DOLLAR IF GRADUAL DIDN'T POSE A BIG THREAT TO THE ECONOMY BUT THE CENTRAL BANK OFFICIAL EMPHASIZED THAT HE WASN'T IN A POSITION TO DISCUSS CURRENCY MOVEMENTS FOREIGN INVESTORS WERE STRONG BUYERS EXPECTING THE YEN TO CONTINUE GAINING AND BOOSTING THE VALUE OF THEIR HOLDINGS IN FOREIGNCURRENCY TERMS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 17 POINTS TO 28383 AS 49 ISSUES ROSE AND 47 FELL THE FT 30STOCK INDEX EASED 28 POINTS TO 21980 VOLUME WAS 5532 MILLION SHARES COMPARED WITH 532 MILLION IN THE PREVIOUS SESSION SELLING WAS LIGHT AND DEMAND WAS MODERATE FOR HIGHYIELDING UTILITIES PARTICIPANTS WERE CONCERNED ABOUT THE EFFECT OF PLANNED US HEALTHCARE REFORMS ON BRITAIN'S HIGHFLYING PHARMACEUTICAL EXPORTERS AND WORRIES ABOUT A BIG NEW STOCK RIGHTS ISSUE WHICH WOULD DRAIN THE MARKET OF SOME LIQUIDITY ALSO SHOOK CONFIDENCE ABOUT SHORTTERM GAINS FOR THE MARKET PARTICIPANTS SCARCELY RESPONDED TO NEWS THAT BRITAIN'S GROSS DOMESTIC PRODUCT EDGED UP IN THE FOURTH QUARTER OF 1992 LEAVING IT DOWN 01 FOR THE YEAR IN FRANKFURT WHERE TRADING WAS SUBDUED SOMEWHAT BY GERMANY'S CELEBRATION OF CARNIVAL WEEK THE DAX 30STOCK INDEX ROSE 335 POINTS TO 168074 A NEW CLOSING HIGH FOR 1992 AND NEAR THE DAY'S HIGH OF 168137 OF THE DAX STOCKS 17 ADVANCED AND 13 RETREATED BANKING SHARES SURGED ON HOPES FOR REDUCED INTEREST RATES AND AUTO SHARES PLUNGED ON PROFITTAKING FOLLOWING BIG DROPS IN GERMAN PRODUCTION AND NEWCAR REGISTRATIONS IN JANUARY SOME SHARES GAINED IN LINE WITH AN EARLY RALLY IN THE BOND MARKET FOR BOND FUTURES WHICH JUMPED ON RENEWED SPECULATION ABOUT A FRESH CUT IN GERMAN INTEREST RATES THE LATEST TALK WAS PROMPTED BY THE GERMAN CENTRAL BANK'S REPORT FRIDAY THAT MONEYSUPPLY DATA AN INFLATION INDICATOR CONTRACTED IN JANUARY AFTER A POTENTIALLY INFLATIONARY EXPANSION THROUGHOUT LAST YEAR IN PARIS STOCKS GAINED FOR THE FOURTH SESSION IN A ROW AMID FRESH BUYING FOR THE START OF THE MARCH ACCOUNT MADRID SHARES DECLINED AS INVESTORS WERE UNNERVED BY CONTINUING TURBULENCE ON FOREIGNEXCHANGE MARKETS US MOVES ON HEALTH CARE ALSO WEIGHED ON STOCKS IN STOCKHOLM WHERE PHARMACEUTICAL ISSUES PLUNGED WHILE THE BROADER MARKET ROSE AND ZURICH STOCKS WERE DRAGGED DOWN BY SELLING OF DRUG STOCKS AMID CONCERN ABOUT CONTROLS IN US MEDICINE SYDNEY STOCKS RECOVERED MOST OF THEIR FRIDAY LOSSES HELPED BY WALL STREET'S FRIDAY GAINS AND BY AN OPINION POLL SHOWING AUSTRALIA'S GOVERNMENT IS LIKELY TO CHANGE AS A RESULT OF THE MARCH 13 NATIONAL ELECTION HONG KONG SHARES ENDED SOLIDLY HIGHER DESPITE MILD PROFITTAKING AS BULLISH SENTIMENT CONTINUED REGARDING SINOBRITISH RELATIONS SEOUL PRICES JUMPED ON BULLISHNESS STEMMING FROM EXPECTATIONS OF MARKETBOOSTING MEASURES THIS WEEK AS A NEW SOUTH KOREAN GOVERNMENT TAKES OFFICE TAIPEI EQUITIES CLIMBED ON POSITIVE CORPORATE DEVELOPMENTS AMONG CORPORATE DEVELOPMENTS IN LONDON TRADING REPORTED IN GUILDERS ROYAL DUTCH/SHELL GROUP ENDED AT 15535 GUILDERS 8417 UP 070 THE ANGLODUTCH OIL COMPANY SAID FOREIGNEXCHANGE LOSSES REPORTED DURING THE WEEKEND BY ITS 50OWNED JAPANESE REFINING AND DISTRIBUTION SUBSIDIARY SHOWA SHELL SEKIYU WILL TRANSLATE INTO A 131 MILLION 1903 MILLION NET CHARGE AGAINST ITS 1992 ACCOUNTS THE CHARGE WILL BE OFFSET BY AN UNRELATED CREDIT OF 149 MILLION FROM A CHANGE IN ACCOUNTING TREATMENT OF THE UNIT BUT THE COMPANY WARNED FURTHER CHARGES ARE POSSIBLE IN TOKYO SHOWA SHELL DROPPED THE LIMIT OF 300 YEN OR 20 TO 1200 YEN 101 IN MILAN FIAT FELL 30 LIRE TO 5350 LIRE 341 THE ENTIRE MARKET LOST GROUND ON NEWS REPORTS THAT TWO SENIOR EXECUTIVES OF THE INDUSTRIAL GROUP INCLUDING THE CHIEF FINANCIAL OFFICER WERE ARRESTED IN AN ITALIAN CORRUPTION SCANDAL ON SUSPICION OF VIOLATING A POLITICALPARTY FINANCING LAW AND OF COMPLICITY IN CORRUPTION THEY WERE IDENTIFIED AS FRANCESCO PAOLO MATTIOLI THE FINANCIAL CHIEF WHOSE ARREST CAME IN CONNECTION WITH HIS CAPACITY AS CHAIRMAN OF FIAT'S CONSTRUCTION UNIT COGEFARIMPRESIT AND ANTONIO MOSCONI MANAGING DIRECTOR OF TORO ASSICURAZIONI AN INSURER CONTROLLED BY FIAT IN SYDNEY TNT FELL 1 CENT TO 78 AUSTRALIAN CENTS 54 US CENTS THE TRANSPORTATION COMPANY'S AFTERTAX OPERATING LOSS FOR ITS FIRST HALF ENDED DEC 31 WIDENED TO 745 MILLION AUSTRALIAN DOLLARS US514 MILLION FROM AN A511 MILLION DEFICIT A YEAR EARLIER IN STOCKHOLM ASTRA CLASS A SHARES TUMBLED 22 SWEDISH KRONOR OR 32 TO 685 KRONOR 45416 DESPITE A 94 SURGE IN FOURTHQUARTER PRETAX PROFIT AS INVESTORS WERE NERVOUS ABOUT PHARMACEUTICAL ISSUES THE QUARTERLY RESULTS AND ASTRA'S 50 JUMP IN 1992 PRETAX PROFIT EXCEEDED MOST ANALYSTS' EXPECTATIONS AND SALES OF THE COMPANY'S FLAGSHIP ANTIULCER DRUG LOSEC INCLUDING THOSE BY LICENSEES SOARED 48 LAST YEAR PASSING 1 BILLION FOR THE FIRST TIME BUT FOURTHQUARTER PROFIT MARGINS WERE THIN BECAUSE OF ASTRA'S DECISION TO TAKE UNEXPECTED ONETIME CHARGES AND THE COMPANY ISSUED A GUARDED FORECAST FOR 1993 PRETAX EARNINGS 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 9302230058 930223 INTERNATIONAL BRIEF BASS PLC QUEENS MOAT FRANCHISE PACT FOR HOLIDAY INNS IS EXTENDED BASS PLC AND QUEENS MOAT HOUSES PLC AGREED TO EXTEND THEIR FRANCHISE ARRANGEMENT BY CONVERTING EIGHT MORE QUEENS MOAT HOTELS INTO HOLIDAY INNS THE COMPANIES ALSO RENEWED EXISTING FRANCHISE LICENSES BETWEEN HOLIDAY INN WORLDWIDE BASS'S HOTEL DIVISION AND QUEENS MOAT FOR 19 QUEENS MOAT HOTELS FOR THE FIRST TIME THE CONVERSION OF QUEENS MOATOWNED HOTELS INTO HOLIDAY INNS WILL INCLUDE FOUR IN BRITAIN THE OTHER FOUR ARE IN CONTINENTAL EUROPE AS ARE THE 19 EXISTING FRANCHISES BASS A BRITISH BREWING AND HOTEL COMPANY AND QUEENS MOAT A BRITISH HOTEL CONCERN DIDN'T DISCLOSE TERMS OF THE AGREEMENT WHICH GENERALLY INVOLVES HOLIDAY INN RECEIVING A PERCENTAGE OF REVENUE IN EXCHANGE FOR THE USE OF ITS BRAND NAME AND MARKETING SUPPORT QUEENS MOAT SAID THE ACCORD FURTHERS ITS POLICY OF USING FRANCHISES WHERE IT BELIEVES A DIFFERENT BRAND NAME WILL RESULT IN HIGHER OCCUPANCY RATES 9302230057 930223 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK GERRY LAYBOURNE WAS NAMED VICE CHAIRMAN A NEW POSITION OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN'S MTV NETWORKS UNIT A PART OF ITS VIACOM INTERNATIONAL INC DIVISION MS LAYBOURNE 45 YEARS OLD WILL CONTINUE AS PRESIDENT OF NICKELODEON VIACOM'S CHILDREN'S CABLE NETWORK MS LAYBOURNE BEGAN WORK WITH NICKELODEON IN 1980 AND HELD A SUCCESSION OF JOBS PRIOR TO BECOMING PRESIDENT OF THE NETWORK IN 1989 MTV NETWORKS CONSISTS OF MTV MUSIC TELEVISION MTV EUROPE VH1 AND NICKELODEON/NICK AT NITE 9302230056 930223 BAKER MOSBACHER WILL DO CONSULTING FOR ENRON CORP HOUSTON AP JAMES BAKER AND ROBERT MOSBACHER CABINET MEMBERS IN THE BUSH ADMINISTRATION HAVE AGREED TO DO CONSULTING WORK FOR ENRON CORP ENRON A NATURALGAS COMPANY WITH 11 BILLION IN ASSETS SAID IT HAS SIGNED A JOINT CONSULTING AND INVESTING AGREEMENT WITH THE TWO MEN UNDER THE PACT WHICH WAS ANNOUNCED YESTERDAY MESSRS BAKER AND MOSBACHER WILL ASSIST ENRON IN ITS INTERNATIONAL NATURALGAS PROJECTS NO OTHER DETAILS WERE DISCLOSED MR BAKER WAS SECRETARY OF STATE AND WHITE HOUSE CHIEF OF STAFF IN THE BUSH ADMINISTRATION HE ALSO SERVED IN THE REAGAN AND FORD ADMINISTRATIONS MR MOSBACHER AN INDEPENDENT OILMAN IN HOUSTON SERVED AS SECRETARY OF COMMERCE AND WAS CHAIRMAN OF THE BUSHQUAYLE CAMPAIGN LAST YEAR 9302230055 930223 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 10 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9302230054 930223 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC HIGH COURT DISMISSES APPEAL IN INDUSTRY NETWORK LAWSUIT ARMSTRONG WORLD INDUSTRIES INC FACES A NEW TRIAL IN THE ANTITRUST SUIT BROUGHT BY INDUSTRY NETWORK SYSTEMS INC AFTER THE US SUPREME COURT DECLINED TO HEAR ARMSTRONG'S APPEAL THAT THE CASE BE DISMISSED IN A PREVIOUS TRIAL INSTORE VIDEO PRODUCER INDUSTRY NETWORK WON A 238 MILLION JURY AWARD IN ITS 1984 CLAIM THAT ARMSTRONG A LANCASTER PA MAKER OF FLOOR COVERINGS AND OTHER FURNISHINGS DROVE IT OUT OF BUSINESS THAT VERDICT WAS SET ASIDE BY THE TRIAL JUDGE IN US DISTRICT COURT IN NEWARK NJ INDUSTRY NETWORK IS BASED IN SADDLE RIVER NJ IN A STATEMENT FROM HIS ATTORNEY INDUSTRY NETWORK OWNER ELLIOT FINEMAN SAID HE WAS THRILLED WITH THE LATEST JUDGMENT ARMSTRONG SIMPLY NOTED THE SUPREME COURT'S DENIAL OF ITS APPEAL AND THE REMAND OF THE CASE FOR A NEW TRIAL IN NEWARK ARMSTRONG OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9302230053 930223 WHAT'S NEWS BUSINESS AND FINANCE CLINTON UNVEILED AN INDUSTRIAL POLICY IN WHICH THE GOVERNMENT WOULD EXPLICITLY BACK THE DEVELOPMENT OF COMMERCIALLY USEFUL TECHNOLOGY THE PRESIDENT'S PLAN WOULD SHIFT BILLIONS OF DOLLARS FROM MILITARY RESEARCH TO CIVILIAN PURPOSES AND ALSO FUND A VARIETY OF PROJECTS IN MANUFACTURING NEXTGENERATION AUTOMOBILES AND COMPUTER NETWORKS THE PRESIDENT'S TAX PACKAGE APPEARS TO GIVE A BIG BOOST TO CAPITALINTENSIVE COMPANIES RATHER THAN TO THE SERVICE SECTOR CAUSING WORRY THAT THE PLAN WON'T GENERATE 500000 NEW JOBS SEVERAL NEW DEMOCRATIC MEMBERS OF CONGRESS EXPRESSED CONCERN ABOUT THE ABSENCE OF DEEPER BUDGET CUTS A SHARP BOND MARKET RALLY SENT INTEREST RATES PLUNGING THE YIELD ON THE TREASURY'S 30YEAR BOND FELL TO 693 ITS LOWEST LEVEL IN 15 YEARS STOCKS WERE MIXED WITH THE DOW JONES INDUSTRIALS CLIMBING 2081 POINTS TO 334299 BUT OVERTHECOUNTER ISSUES TUMBLED SYNERGEN SHARES FELL 68 ON NEWS OF DISAPPOINTING RESULTS OF A MAJOR TRIAL OF ITS FLAGSHIP DRUG ANTRIL IT WAS THE THIRD TIME IN THE PAST YEAR THAT A BIOTECH COMPANY HAS FAILED TO DEVELOP A WIDELY EFFECTIVE DRUG TO TREAT SEPSIS AN OFTENLETHAL BLOOD INFECTION THE DOLLAR FELL FURTHER IN THE WAKE OF BENTSEN'S CALL FOR A STRONGER YEN TO REDUCE JAPAN'S TRADE SURPLUS HITTING 11640 YEN IN LATE NEW YORK TRADING THE YEN'S SURGE PUTS AN ADDED BURDEN ON JAPAN'S STRUGGLING ECONOMY PLATINUM FUTURES PLUMMETED MORE THAN 19 AN OUNCE ON HEAVY SELLING TRADERS SAID THE YEN'S RISE CAUSED SPECULATORS AND INVESTORS TO BACK AWAY FROM THE PRECIOUS METAL THE SUPREME COURT AGREED TO DECIDE WHETHER A 1991 JOBDISCRIMINATION LAW APPLIES TO CASES PENDING WHEN THE STATUTE WAS ENACTED RETROACTIVE APPLICATION COULD ALLOW EMPLOYEES TO GO FORWARD WITH THOUSANDS OF LAWSUITS CONSUMER SPENDING IS EXPECTED TO HELP SUSTAIN THE ECONOMIC EXPANSION SOME ECONOMISTS SAY DESPITE THE PROSPECT OF HIGHER TAXES THEY CITE LOWER PAYMENTS FOR HOMEOWNERS WHO REFINANCED MORTGAGE LOANS LAST YEAR AMERITECH WANTS PERMISSION TO ENTER THE LONGDISTANCE PHONE BUSINESS AND MORE FLEXIBILITY IN SETTING PRICES FOR ITS SERVICES IN EXCHANGE FOR OPENING UP ITS NETWORK TO COMPETITORS RELIANCE GROUP HOLDINGS IS IN DISCUSSIONS WITH THE SEC TO SETTLE POSSIBLE CIVIL CHARGES INVOLVING RELIANCE'S TRADES WITH DREXEL BURNHAM LAMBERT'S JUNK BOND DEPARTMENT AMERICAN INTERNATIONAL HAS BEGUN ASSEMBLING AN INHOUSE GROUP OF SALES AGENTS IN AN EFFORT TO BECOME A MAJOR FORCE IN THE LIFE INSURANCE BUSINESS PNC BANK AND OHIO BANCORP CANCELED AN AGREEMENT UNDER WHICH PNC WAS TO ACQUIRE THE SMALLER BANK OHIO BANCORP SAID IT IS IN PRELIMINARY TALKS WITH OTHER POTENTIAL BUYERS MEDICAL CARE AMERICA ANNOUNCED DISAPPOINTING EARNINGS A FURTHER SIGN ITS HOMEINFUSION THERAPY UNIT HAS NOT YET REVERSED ITS PROBLEMS IT ALSO SAID TWO MORE EXECUTIVES WERE LEAVING JAPAN'S CORPORATE BOND MARKET IS GROWING AN ESTIMATED 46 BILLION OF NEW ISSUES WILL REACH THE MARKET THIS MONTH UP 150 FROM A YEAR AGO BONDS LEHMAN BROTHERS TREASURY INDEX 497271 UP 3725 COMMODITIES OIL 2002 A BARREL UP 40 CENTS DOW JONES FUTURES INDEX 12685 UP 049 SPOT INDEX 12488 OFF 044 9302230052 930223 MARKETING BRIEF KIII COMMUNICATIONS CORP LOSS NARROWED SALES ROSE 62 IN THE FOURTH QUARTER KIII COMMUNICATIONS CORP REPORTED A NARROWER NET LOSS FOR THE FOURTH QUARTER AS ITS OPERATING COSTS DECLINED AND SALES OF ITS PUBLICATIONS ROSE 62 FOR THE QUARTER THE CLOSELY HELD PUBLISHING COMPANY IN NEW YORK REPORTED A NET LOSS OF 87 MILLION COMPARED WITH 169 MILLION IN 1991 EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION INCREASED BY 13 TO 519 MILLION AND SALES GREW 116 MILLION TO 2001 MILLION GIVEN THE ADVERSE BUSINESS CLIMATE DURING 1992 WE ARE PLEASED WITH KIII'S FINANCIAL PERFORMANCE SAID WILLIAM F REILLY CHAIRMAN AND CHIEF EXECUTIVE BUT THE COMPANY REPORTED A WIDER NET LOSS FOR THE YEAR 1453 MILLION COMPARED WITH 1344 MILLION IN 1991 EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION INCREASED 89 TO 1254 MILLION SALES WERE UP 13 TO 7782 MILLION KIII PUBLISHES NEW YORK AND SEVENTEEN MAGAZINES AS WELL AS THE DAILY RACING FORM AND FUNK & WAGNALL'S ENCYCLOPEDIA 9302230050 930223 BUSINESS BRIEF PEGASUS GOLD INC MINING COMPANY'S EARNINGS FELL 62 IN FOURTH QUARTER PEGASUS GOLD INC SAID NET INCOME IN THE FOURTH QUARTER FELL 62 BECAUSE OF AN INCREASE IN PRODUCTION COSTS RELATED IN PART TO HARSH WEATHER CONDITIONS IN MONTANA BUT FOR THE YEAR THE COMPANY SAID ITS OPERATING PROFIT REACHED THE HIGHEST LEVEL IN ITS HISTORY 461 MILLION VS 326 MILLION A YEAR AGO EVEN THOUGH THE PRICE OF GOLD FELL TO ITS LOWEST LEVEL SINCE 1985 CASH COSTS OF PRODUCING GOLD FOR THE YEAR DECLINED TO 214 AN OUNCE FROM 226 AN OUNCE DESPITE THE INCREASE IN COSTS THE SPOKANE WASH GOLD MINING COMPANY SAID FOURTHQUARTER NET FELL TO 13 MILLION OR FOUR CENTS A SHARE COMPARED WITH 33 MILLION OR 13 CENTS A SHARE IN THE YEARAGO PERIOD COSTS FOR THE QUARTER ROSE TO 247 AN OUNCE FROM 214 AN OUNCE BECAUSE OF AN ADJUSTMENT FOR STRIPPING RATIOS AT ONE MINE AND BAD WEATHER AT ANOTHER REVENUE ROSE 7 TO 449 MILLION FROM 42 MILLION 9302230049 930223 BUSINESS BRIEF EATON CORP RISE IN TRUCK SALES EXPECTED TO SPUR 1993 GAINS FOR FIRM EATON CORP EXPECTS A BOOST IN ITS RESULTS THIS YEAR BECAUSE OF AN ANTICIPATED 22 JUMP IN THE NUMBER OF HEAVY TRUCKS BUILT EATON BASED IN CLEVELAND GENERATED 32 OF ITS 387 BILLION IN 1992 SALES FROM THIS AREA FOR WHICH IT MAKES TRANSMISSIONS AXLES CLUTCHES AND BRAKES CHAIRMAN WILLIAM E BUTLER ATTRIBUTED THE SURGE TO A STRENGTHENING DOMESTIC ECONOMY AND PENTUP DEMAND HE SAID HEAVY TRUCK ORDERS COULD RISE EVEN HIGHER WITH THE PROPOSED INVESTMENT TAX CREDIT EXPECTED HIGHER LIGHTTRUCK AND PASSENGER CAR SALES SHOULD LIKEWISE HELP THE COMPANY ALTHOUGH THOSE AREAS AREN'T AS BIG A KICKER AS HEAVY TRUCK SALES BECAUSE THEY MAKE UP SMALLER PERCENTAGES OF SALES HE SAID MR BUTLER DECLINED TO COMMENT ON ANALYSTS' EXPECTATIONS THAT THE COMPANY WILL EARN 112 A SHARE IN THE FIRST QUARTER AND 550 FOR THE YEAR IN 1992'S FIRST QUARTER EATON EARNED 327 MILLION OR 96 CENTS A SHARE FOR 1992 IT HAD A LOSS OF 128 MILLION OR 371 A SHARE LARGELY BECAUSE OF ACCOUNTING CHANGES 9302230048 930223 BUSINESS BRIEF DISCOUNT CORP OF NEW YORK FIRM HIRES GOLDMAN SACHS TO EXPLORE ALTERNATIVES' DISCOUNT CORP OF NEW YORK A PRIMARY DEALER OF GOVERNMENT SECURITIES SAID IT HIRED GOLDMAN SACHS & CO TO EXPLORE FINANCIAL ALTERNATIVES THE COMPANY ALSO SAID ITS PRESIDENT DAVID G BOOTH 38 YEARS OLD RESIGNED AFTER LESS THAN A YEAR ON THE JOB THE DEVELOPMENTS REFLECT THE CONTINUING TURMOIL AT DISCOUNT WHICH OVER THE PAST 19 MONTHS HAS RESTRUCTURED BY SHEDDING FIVE BUSINESSES CLOSING FIVE OFFICES AND REDUCING ITS WORK FORCE TO 85 FROM 400 IT ALSO HAS STRUGGLED TO RECOVER FROM LOSSES IN ITS BOND TRADING OPERATIONS AND ANNOUNCED PLANS TO PHASE OUT ITS DIVIDEND DISCOUNT SAID IT WILL CONCENTRATE ON WAYS TO STRENGTHEN ITS CAPITAL BASE THE COMPANY'S OPTIONS INCLUDE THE SALE OR MERGER OF THE COMPANY AS WELL AS RAISING MONEY FROM SOME OTHER SOURCE MR BOOTH RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID RAFE DE LA GUERONNIERE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME HIS DUTIES 9302230047 930223 BUSINESS BRIEF HOME DEPOT INC FOURTHPERIOD NET ROSE 44 WHILE SALES INCREASED 40 HOME DEPOT INC POSTED A 44 GAIN IN FISCAL FOURTHQUARTER EARNINGS AS CONSUMER SPENDING ON THE HOME CONTINUED TO STRENGTHEN FOR THE QUARTER ENDED JAN 31 THE HOMEIMPROVEMENT RETAILER IN ATLANTA REPORTED EARNINGS OF 971 MILLION OR 29 CENTS A SHARE COMPARED WITH 676 MILLION OR 21 CENTS A SHARE A YEAR EARLIER SALES ROSE 40 TO 182 BILLION FROM 130 BILLION ON A COMPARABLESTORE BASIS SALES JUMPED 15 IN THE QUARTER THE COMPANY SAID WHILE THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS HOME DEPOT'S SHARE PRICE TUMBLED YESTERDAY CLOSING AT 5975 A SHARE OFF 1625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE THE STOCK WAS UP MORE THAN 2 A SHARE EARLY IN THE DAY THE NEW YORK STOCK EXCHANGE REPORTED THE SALE OF A BLOCK OF TWO MILLION SHARES OF HOME DEPOT IN THE EARLY AFTERNOON SEVERAL HOURS LATER IT WAS REPORTED THAT THE TRADE HAD BEEN CANCELED BY THE PHILADELPHIA STOCK EXCHANGE 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 9302230046 930223 FORM + FUNCTION BY JOHN PIERSON WHY DOESN'T SOMEONE BUILD A GREAT RAMP THE AMERICANS WITH DISABILITIES ACT REQUIRES UNIVERSAL ACCESS TO PUBLIC AND COMMERCIAL BUILDINGS NEW STRUCTURES CAN HAVE ACCESS DESIGNED IN BUT MOST OLDER BUILDINGS HAVE REMEDIES GRAFTED ON ELEVATORS OR LIFTS FRONT YARDS GRADED UP TO ADMIT WHEELCHAIRS OR MORE OFTEN THAN NOT RAMPS IN THE VIEW OF MANY ARCHITECTS TODAY'S RAMPS SPOIL THE LOOKS OF MANY BUILDINGS MICHAEL WEINBERGER WOODSTOCK VT LIKENS RAMPS TO THE WORK OF A SLASHER JOSEPH ESHERICK SAN FRANCISCO SAYS THERE ARE MORE MISERABLY DONE RAMPS THAN ANYONE CAN IMAGINE AND RON MACE A DISABLED ARCHITECT FROM RALEIGH NC SAYS MOST RAMPS STRIKE A DISCORDANT NOTE DARTMOUTH COLLEGE'S PIKE HOUSE IN HANOVER NH HAS A WOODEN RAMP THAT WAS INSTALLED BY CARPENTERS FROM THE LOCAL HOSPITAL WHICH USED TO OWN THE BUILDING COLLEGE ARCHITECT JOHN WILSON SAYS HE WAS DISMAYED WHEN HE SAW THE UGLY ADDITION WHICH THE COLLEGE PLANS TO REPLACE EVENTUALLY THEORIES ABOUND ABOUT WHY SO MANY RAMPS ARE UGLY WILLIAM MAGAZINE LAFAYETTE IND A DISABILITIESACT CONSULTANT WHO IS DISABLED BLAMES THE WEAK ECONOMY FOR MAKING BUILDING OWNERS RELUCTANT TO PAY FOR GOOD LOOKS JOSEPH DEL VECCHIO A DISABLED ARCHITECT IN EAST PROVIDENCE RI SAYS MANY OWNERS SHUN IMAGINATIVE SOLUTIONS FOR FEAR OF BEING SUED OVER POOR OR UNSAFE ACCESS MOST OF THE DISABLED MEANWHILE ARE SO FRUSTRATED AESTHETICS ISN'T THE MAIN ISSUE SAYS KEVIN MUNROE A WAKEFIELD RI ARCHITECT MANY ARCHITECTS POINT TO THE BRITISH COLUMBIA PROVINCIAL GOVERNMENT'S COMPLEX IN VANCOUVER AS A RARE EXAMPLE OF BEAUTY BROUGHT TO BEAR ON ACCESS FOR THE DISABLED ARTHUR ERICKSON ARCHITECTS MADE WHEELCHAIR RAMPS WITHOUT RAILINGS ZIGZAG BACK AND FORTH ACROSS THREE SETS OF CONCRETE STEPS 50 FEET WIDE AND 15 FEET HIGH THAT WAS IN 1979 BUT HOPE SPRINGS ETERNAL THERE'S NO REASON WHY YOU CAN'T HAVE A GREAT RAMP NEXT TO A GREAT SET OF STAIRS SAYS CHICAGO ARCHITECT MARK RAKATANSKY LOVE DRIVES A STRAIGHTER NAIL SO SAYS HABITAT FOR HUMANITY THE NONPROFIT GROUP SAYS THE 27 LOWINCOME HOUSES IT BUILT IN THE MIAMI AREA SURVIVED HURRICANE ANDREW BETTER THAN OTHERS CHALK IT UP TO LABOR MATERIALS AND DESIGN HABITAT SAYS THE GROUP USES VOLUNTEER BUILDERS BUT REQUIRES ITS FUTURE HOMEOWNERS TO PROVIDE SWEAT EQUITY VOLUNTEERS WORKING ALONGSIDE FAMILIES TAKE A LITTLE EXTRA CARE SAYS DIRK HOLKEBOER EXECUTIVE DIRECTOR OF HABITAT'S MIAMI CHAPTER ALSO SAYS MR HOLKEBOER HIS GROUP USES PLYWOOD INSTEAD OF WEAKER SUBSTITUTES NAILS INSTEAD OF STAPLES TO FASTEN PLYWOOD TO THE FRAME EXTRA BRACES AND EXTRA STUDS MOREOVER HE ADDS MOST OF HABITAT'S MIAMI HOUSES ARE WOOD FRAME WHICH GIVES MORE IN A BIG WIND THAN CEMENT BLOCK A FAR MORE COMMON MATERIAL IN SOUTHERN FLORIDA AND THEIR ROOFS DON'T OVERHANG THE SIDES OF THE HOUSES GIVING THE WIND LESS OF A TARGET THE CITY'S BUILDERS AGREE IN PART IT'S TRUE THAT WOOD BENDS DURING A STORM AND THEN GOES RIGHT BACK IN PLACE SAYS CHUCK LENNON EXECUTIVE DIRECTOR OF THE BUILDERS ASSOCIATION OF SOUTH FLORIDA BUT THE PROBABILITY OF ERROR IS GREATER WHEN BUILDING WITH WOOD HE ADDS DAVID SNELL A SPOKESMAN FOR HABITAT FOR HUMANITY INTERNATIONAL AMERICUS GA SAYS THE GROUP BUILDS A VERY SIMPLE HOUSE WITHOUT ANY ARCHITECTURAL DOODADS THAT WOULD WEAKEN IT IT'S GETTING SO YOU CAN'T MAKE CONCRETE WITHOUT BREAKING EGGS WR GRACE HAS A NEW CHEMICAL DARAFILL THAT MAKES LIQUID CONCRETE THIN ENOUGH TO FLOW LIKE WATER AND FRAGILE ENOUGH TO DIG UP EASILY LATER ON BUILDERS ADD DARAFILL TO CONCRETE TO FILL AROUND UNDERGROUND STORAGE TANKS PIPES AND WIRES CONCRETE MAKERS TRADITIONALLY DELIVERED SUCH CHEMICALS TO THEIR TRUCKS FROM A PUMP AND METER AT THE PLANT BUT THAT EQUIPMENT IS COSTLY AND THE CHEMICALS MAKE THE CONCRETE EXPAND QUICKLY SOMETIMES CAUSING IT TO OVERFLOW FROM THE TRUCK SO MANY CONCRETE MAKERS NOW GIVE THEIR DRIVERS CONTAINERS THE SIZE OF GOOSE EGGS MADE OF GREEN WAX EACH EGG HOLDS THREE OUNCES OF DARAFILL ENOUGH FOR A CUBIC YARD OF CONCRETE WHEN A TRUCK ARRIVES AT THE JOB SITE THE DRIVER HURLS THE EGGS INTO THE MIXER ANY OVERFLOW GOES RIGHT WHERE THE CONCRETE IS NEEDED THE EGG WAS CREATED BY PACKAGE DESIGNERS THEM OF MT LAUREL NJ PRESIDENT NEIL KOZARSKY SAYS THE FIRM WANTED TO DESIGN AN ELEMENT OF FUN INTO THE PACKAGE TO HELP WORKERS VENT PENTUP STRESS AND FRUSTRATION THEM FIRST TRIED A HAND GRENADE AND THEN A FOOTBALL BUT CONCLUDED NEITHER WAS RIGHT FOR A CONSERVATIVE COMPANY LIKE GRACE MR KOZARSKY SAYS MIXERS ARE TAKING THEIR EGGS EASY UP BOB KENNEDY A DRIVER FOR GRAZIANO CONCRETE BRAINTREE MASS SAYS IT AIN'T LIKE PITCHING IN THE WORLD SERIES WHEN IT'S 10 DEGREES OUT YOU JUST WANT TO THROW THE EGGS AND GET BACK IN THE CAB 9302230045 930223 BUSINESS BRIEF NORDSTROM INC FISCAL 4THPERIOD NET ROSE ON STRONG CHRISTMAS SALES A BRIGHTER CHRISTMAS SEASON HELPED NORDSTROM INC SEATTLE POST A 22 INCREASE IN FISCAL FOURTHQUARTER EARNINGS FOR THE PERIOD ENDED JAN 31 THE DEPARTMENTSTORE RETAILER'S NET INCOME JUMPED TO 50 MILLION OR 61 CENTS A SHARE FROM THE YEAREARLIER QUARTER'S 409 MILLION OR 50 CENTS A SHARE THE LATEST PERIOD INCLUDED A CHARGE OF 4 MILLION OR FIVE CENTS A SHARE FROM THE SETTLEMENT OF A LAWSUIT OVER EMPLOYEE COMPENSATION FOURTHQUARTER SALES ROSE 93 TO 107 BILLION FROM 9781 MILLION NORDSTROM SAID ITS SAMESTORE SALES IN THE LATEST CHRISTMAS SELLING SEASON ROSE 45 BUT SO FAR THIS MONTH SUCH SALES AT STORES OPEN AT LEAST A YEAR ARE SLIGHTLY NEGATIVE REFLECTING IN PART A NATURAL SLOWDOWN AFTER SOME OF THE HEAVIEST HOLIDAY SPENDING BY CONSUMERS IN YEARS THE COMPANY SAID FOR FISCAL 1993 NORDSTROM'S NET INCHED UP TO 1366 MILLION OR 167 A SHARE FROM 1358 MILLION OR 166 A SHARE SALES ROSE TO 342 BILLION FROM 318 BILLION 9302230044 930223 INITIAL OFFER OF SEARS UNIT IS PRICED ABOVE FORECASTS NEW YORK REFLECTING STRONG INVESTOR INTEREST THE INITIAL PUBLIC OFFERING OF 295 MILLION SHARES OF DEAN WITTER DISCOVER & CO WAS PRICED AT 27 A SHARE THAT'S WELL ABOVE THE 23 TO 25 A SHARE THAT PARENT SEARS ROEBUCK & CO ORIGINALLY EXPECTED THE OFFERING WHICH IS SCHEDULED TO BEGIN TODAY WILL RAISE ABOUT 755 MILLION AFTER UNDERWRITING FEES THE RETAIL AND FINANCIAL SERVICES COMPANY IS OFFERING 20 OF DEAN WITTER DISCOVER TO THE PUBLIC AS PART OF A MAJOR RESTRUCTURING SEARS ALSO PLANS TO SELL ITS COLDWELL BANKER REAL ESTATE UNIT AND A STAKE IN ITS ALLSTATE INSURANCE OPERATION AS PART OF ITS EFFORT TO REDUCE DEBT SEARS EXPECTS TO SELL THE REST OF THE DEAN WITTER BROKERAGE BUSINESS AND THE DISCOVER CREDIT CARD OPERATION BY YEAR'S END THROUGH A SPECIAL DIVIDEND TO HOLDERS SEARS ANTICIPATES RECEIVING A 560 MILLION SPECIAL DIVIDEND FROM THE SALE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SEARS CLOSED AT 53875 UP 375 CENTS 9302230043 930223 BUSINESS BRIEF CULBRO CORP UNIT COMPLETES ACQUISITION FOURTHQUARTER LOSS POSTED CULBRO CORP SAID ITS ELI WITT CO DISTRIBUTION UNIT COMPLETED THE ACQUISITION OF CERTIFIED GROCERS OF FLORIDA INC OCALA FLA SEPARATELY CULBRO REPORTED A LOSS OF 898000 FOR ITS FISCAL FOURTH QUARTER ENDED NOV 28 THE NEW YORK TOBACCO AND CONSUMER PRODUCTS CONCERN SAID ITS FOURTHPERIOD AMOUNTED TO 21 CENTS A SHARE THE COMPANY EARNED 29 MILLION OR 68 CENTS A SHARE IN THE PERIOD ENDED NOV 30 1991 THE 1992 FOURTH QUARTER INCLUDES A 35 MILLION RESTRUCTURING CHARGE AT ELI WITT NOW 85OWNED BY CULBRO IN ANTICIPATION OF ITS MERGER WITH CERTIFIED GROCERS WHICH WAS COMPLETED FRIDAY THE YEAREARLIER QUARTER INCLUDES A 57 MILLION BENEFIT FROM LOWER INVENTORIES FOR THE YEAR CULBRO POSTED PROFIT OF 19 MILLION OR 43 CENTS A SHARE A 41 DROP FROM 32 MILLION OR 74 CENTS A SHARE IN FISCAL 1991 ALONG WITH THE 1991 FOURTHQUARTER BENEFIT THE 1991 FULLYEAR RESULTS INCLUDE 99 MILLION IN BENEFITS FROM LOWER INVENTORIES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CULBRO WAS QUOTED AT 17 UNCHANGED 9302230042 930223 BUSINESS BRIEF IDEC PHARMACEUTICALS CORP SMITHKLINE IN WIDER PACT TO PAY AN EXTRA 20 MILLION IDEC PHARMACEUTICALS CORP LA JOLLA CALIF SAID IT WILL RECEIVE AN ADDITIONAL 20 MILLION UNDER AN EXPANDED AGREEMENT WITH SMITHKLINE BEECHAM PLC TO DEVELOP A CATEGORY OF NEW DRUGS THE ORIGINAL PACT ANNOUNCED IN OCTOBER CALLED FOR IDEC TO RECEIVE AS MUCH AS 33 MILLION IN MILESTONE PAYMENTS FROM SMITHKLINE IDEC ALSO AGREED TO SELL AS MUCH AS 75 OF ITS COMMON STOCK TO THE UK DRUG MAKER UNDER THE AMENDED ACCORD SMITHKLINE RECEIVED RIGHTS TO THE PROSPECTIVE NEW DRUGS IN JAPAN AND OTHER PARTS OF ASIA THE PAYMENTS WILL BE MADE TO IDEC AS THE NEW TREATMENTS MOVE THROUGH TRIALS AND APPROVALS THE TREATMENTS INVOLVE ANTIBODIES TO COMBAT RHEUMATOID ARTHRITIS LUPUS PSORIASIS BOWEL DISEASE AND MULTIPLE SCLEROSIS SEPARATELY IDEC SAID CLIFFORD ORENT RESIGNED AS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER MR ORENT 42 YEARS OLD RESIGNED RATHER THAN MOVE FROM MOUNTAIN VIEW CALIF TO LA JOLLA WHERE CORPORATE HEADQUARTERS ARE BEING CONSOLIDATED A SPOKESMAN SAID 9302230041 930223 BUSINESS BRIEF PRUDENTIAL INSURANCE CO OF AMERICA FIRM BUYS LONDON CONCERN THAT MANAGES REAL ESTATE PRUDENTIAL INSURANCE CO OF AMERICA SAID IT PURCHASED A LONDONBASED REAL ESTATE MANAGEMENT COMPANY THAT MANAGES 900 MILLION OF PROPERTIES THE ACQUISITION OF MIM PROPERTY SERVICES LTD WILL BOOST BY 20 THE AMOUNT OF PROPERTY THAT PRUDENTIAL MANAGES FOR INSTITUTIONAL CLIENTS SUCH AS PENSION FUNDS AND FOUNDATIONS TERMS WEREN'T DISCLOSED THE INTERNATIONAL REAL ESTATE ADVISORY BUSINESS HAS GREAT POTENTIAL SAID ROBERT E RILEY PRUDENTIAL EXECUTIVE VICE PRESIDENT INSTITUTIONS ARE SHOWING INCREASED INTEREST IN GLOBAL DIVERSIFICATION PRUDENTIAL BASED IN NEWARK NJ HAS BEEN MANAGING PROPERTIES FOR INSTITUTIONS SINCE 1970 AND PRIOR TO THE ACQUISITION MANAGED 5 BILLION OF PROPERTIES MIM PROPERTY SERVICES WAS FORMERLY PART OF INVESCO MIM PLC AN ANGLOAMERICAN INVESTMENT ADVISORY GROUP BASED IN LONDON 9302230040 930223 BUSINESS BRIEF AB ASTRA FOURTHQUARTER PRETAX NET ROSE 94 AS SALES INCREASED AB ASTRA REPORTED THAT FOURTHQUARTER PRETAX PROFIT SURGED 94 TO 16 BILLION KRONOR 2104 MILLION FROM A YEAR EARLIER SALES OF THE SWEDISH COMPANY CLIMBED 22 TO 436 BILLION KRONOR BUT WHILE THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS ASTRA SHARES FELL AS INVESTORS SHOWED CONCERN ABOUT SLIMMER PROFIT MARGINS AND GROWTH DOWN THE ROAD ASTRA'S BENCHMARK CLASS A SHARES TUMBLED 22 SWEDISH KRONOR OR 31 TO 685 KRONOR ASTRA'S PROFIT GROWTH HAS OUTPACED SALES FOR 15 CONSECUTIVE YEARS BUT AT A NEWS CONFERENCE ASTRA'S CHIEF EXECUTIVE OFFICER HAKAN MOGREN SAID IT'S GETTING TOUGHER TO SUSTAIN THAT PACE GIVEN THE MARKET PENETRATION ALREADY ACHIEVED FOR MANY MAJOR PRODUCTS AND INTENSIFYING PRESSURE ON PRICES FROM GOVERNMENTS AND OTHER HEALTHCARE PROVIDERS AROUND THE WORLD 9302230039 930223 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEB 19 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CONNECTICUT WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 83 AND 84 GENERAL STATE PURPOSES BONDS DUE MARCH 15 199496 AND 199798 RESPECTIVELY 1982 ACT SERIES A 1980 ACT SERIES B AND 1979 ACT SERIES B ALSO ITS 84 HIGHWAY SYSTEM BONDS 1969 ACT SERIES D DUE MARCH 15 19992003 SHAWMUT BANK CONNECTICUT HARTFORD CONN IS PAYING AGENT GULF COAST WASTE DISPOSAL AUTHORITY WILL REDEEM ON APRIL 1 1993 THE FOLLOWING 7 3/8 REFUNDING BONDS DUE APRIL 1 2000 60000 PRINCIPAL AMOUNT OF ITS SERIES 1975A ENVIRONMENTAL IMPROVEMENT BONDS 55000 PRINCIPAL AMOUNT OF ITS SERIES 1975C AIR POLLUTION CONTROL BONDS AND 60000 PRINCIPAL AMOUNT OF ITS ENVIRONMENTAL IMPROVEMENT BONDS SERIES 1975B TEXAS COMMERCE BANK HOUSTON IS TRUSTEE MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON MARCH 15 1993 ITS QUALIFIED MORTGAGE PURCHASE NOTES MERCANTILE BANK OF ST LOUIS IS TRUSTEE MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH 23 1993 ITS 105 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1983 DUE MARCH 1 2003 MELLON BANK PHILADELPHIA IS TRUSTEE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON MARCH 3 1993 ITS SERIES A FIRST MORTGAGE GROSS REVENUE BONDS UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE RACINE WIS WILL REDEEM ON MARCH 11 1993 ITS SERIES 1977 HOSPITAL FACILITY REVENUE BONDS FIRST BANK MILWAUKEE IS TRUSTEE ST LOUIS AREA HOUSING FINANCE CORP WILL REDEEM ON APRIL 1 1993 ITS SERIES 1982 MORTGAGE REVENUE BONDS DUE OCT 1 1996 MERCANTILE BANK OF ST LOUIS IS TRUSTEE FLORIDA POWER CORP A SUBSIDIARY OF FLORIDA PROGRESS CORP WILL REDEEM ON MARCH 12 1993 200000 SHARES OF ITS 784 CUMULATIVE PREFERRED STOCK AND 50000 SHARES OF ITS 708 CUMULATIVE PREFERRED STOCK 9302230038 930223 LOOSE THREADS DRESSMAKER LESLIE FAY IS AN OLDSTYLE FIRM THAT'S IN A MODERN FIX AUDITORS PLUMB THE MYSTERY OF WHO WAS FUDGING THE NUMBERS AND WHY A TIGHTENING SQUEEZE IN 1992 BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOW COULD A COMPANY THAT KEEPS TRACK OF COINS IN ITS BATHROOM TAMPON MACHINE REPORT 23 MILLION IN PROFITS THAT MIGHT NEVER HAVE EXISTED THIS JARRING QUESTION THE KIND THAT CAN RUIN CAREERS AND PROMPT FRAUD CLAIMS IS NOW BEING PUT TO LESLIE FAY CO THE VENERABLE DRESSMAKER IN ONE OF THE ODDEST CHAPTERS IN THE FAST AND LOOSE WORLD OF FASHIONINDUSTRY FINANCE SINCE THE COMPANY ANNOUNCED THREE WEEKS AGO THAT NET INCOME IT REPORTED FOR THE LAST QUARTER OF 1991 AND ALL OF 1992 MAY HAVE BEEN FICTION AND THAT IT MIGHT ACTUALLY HAVE HAD A LOSS FOR LAST YEAR A TALE OF GROSS FINANCIAL PERFIDY AT THE 800 MILLIONAYEAR COMPANY IS BEGINNING TO UNFOLD IT NOW APPEARS THAT A RESPECTED EMPEROR OF SEVENTH AVENUE HAS BEEN WITHOUT CLOTHES FOR MORE THAN A YEAR MUCH TO THE OUTRAGE OF SHAREHOLDERS WHO HAVE AT THIS POINT FILED 12 LAWSUITS AS SWARMS OF AUDITORS DESCEND ON THE COMPANY LESLIE FAY'S TOP EXECUTIVES WHO STOOD TO PROFIT FROM BONUSES TIED TO OVERALL NET INCOME SAY THAT THE FALSE INCOME REPORTS WERE THE WORK OF A LITTLEKNOWN COMPANY CONTROLLER WHO MASTERMINDED A GRAND ACCOUNTING SCHEME CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN POMERANTZ WHO WAS PAID 36 MILLION IN 1991 MOSTLY IN A BONUS SAYS HE IS BEWILDERED BY THE ACCOUNTING SCANDAL WE JUST DON'T KNOW WHY THEY WOULD DO IT HE SAYS OF THE MIDLEVEL EMPLOYEES WHOSE SCHEME CONCEALED LESLIE FAY'S SLIDING FORTUNES YET WHILE LESLIE FAY WAS REPORTING PROFITS LAST YEAR AND KEEPING ITS STOCK PRICE BUOYED WITH ASSURANCES TO ANALYSTS MR POMERANTZ WAS QUIETLY CALLING STORES PLEADING WITH THEM TO SELL MORE OF THE COMPANY'S POORLY RECEIVED MERCHANDISE AND OFFERING MILLIONS IN REBATES TO PROTECT RETAILERS WHO SLASHED PRICES THE 58YEAROLD CEO MAINTAINS HE DID NOT WILLFULLY MISREPRESENT THE COMPANY'S CONDITION HE SAYS THAT CARPING FROM RETAILERS WASN'T UNCOMMON AND DIDN'T ALERT HIM TO THE FACT THAT FIGURES REPORTED FROM THE COMPANY'S FINANCIAL OFFICE WERE FAR TOO POSITIVE HE ALSO SAYS THE COMPANY HAS NOT DETECTED ANY THEFT IN CONNECTION WITH THE ACCOUNTING SCANDAL THE CONTROLLER DONALD F KENIA HAS BEEN SUSPENDED WITH PAY AND IS NOW BEING QUESTIONED BY AUDITORS FROM ARTHUR ANDERSEN & CO WHO ARE CONDUCTING AN INVESTIGATION THAT SHOULD REVEAL MORE ABOUT THE SCALE OF THE MISREPORTING AND WHO AT THE COMPANY WAS INVOLVED NEITHER ARTHUR ANDERSEN NOR BDO SEIDMAN THE FIRM THAT REVIEWED LESLIE FAY'S 1991 AND 1992 INTERIM INCOME STATEMENTS WILL COMMENT THOUGH THE EVENTS AT LESLIE FAY STUNNED INVESTORS THEY ECHO A PRACTICE OF GENTLY FUDGING FIGURES TO ENHANCE PROFITS THAT IS NOT UNCOMMON IN THE FASHION INDUSTRY WHERE MANY COMPANIES ARE SMALL AND REMAIN PRIVATE AS LESLIE FAY GREW INTO A LARGE PUBLIC COMPANY SAY CURRENT AND FORMER EMPLOYEES SUCH OLD GARMENTDISTRICT METHODS OF NIPANDTUCK ACCOUNTING PROVED DISASTROUS EVEN VETERANS OF THE GARMENT DISTRICT ARE ASTONISHED THOUGH SLIPPERY ACCOUNTING IS NOT UNHEARD OF IN THE DISTRICT SAYS BUD KONHEIM OWNER OF WOMEN'S APPAREL MAKER NICOLE MILLER LTD NO ONE CAN FIGURE OUT LESLIE FAY WHERE'S THE MONEY WHERE'S THE MOTIVE THAT MANY IN THE TIGHTKNIT INDUSTRY OVERLOOKED THE COMPANY'S GROWING PROBLEMS IS TESTAMENT TO THE GOOD WILL LESLIE FAY ENJOYS RESPECT FOR THE COMPANY RUNS DEEP ROOTED IN RELATIONSHIPS BUILT OVER DECADES BY MR POMERANTZ'S LATE FATHER FRED WHO STARTED THE FIRM IN 1947 AFTER MAKING DRESSES FOR THE WOMEN'S ARMY CORPS IN WORLD WAR II HE BUILT THE COMPANY NAMED FOR HIS DAUGHTER BY OFFERING STYLISH SENSIBLE WOMEN'S CLOTHES TO DEPARTMENT STORES INFORMALLY ASSURING THEM HEFTY PROFIT MARGINS ABOVE THE WHOLESALE COST OF THE GOODS BEYOND THAT HE WAS A CELEBRATED GARMENTCENTER CHARACTER WITH A FONDNESS FOR GAMBLING AND RED ROLLSROYCES WHO WOULD OFTEN LIFT HIS SHIRT TO SHOW OFF KNIFE SCARS THAT HE SAID HE HAD RECEIVED TANGLING WITH MOBSTERS WHO TRIED TO UNIONIZE HIS SHOP INDEED FRED POMERANTZ'S SCRAPPY PERSONA WAS SO POTENT IT WOULD DEFINE THE COMPANY LONG AFTER HIS SON JOHN TOOK OVER IN 1972 WHILE SOME COMPETITORS TURNED TO MARKET TESTING AND COMPUTERIZED SYSTEMS A DECADE AGO LESLIE FAY HAS REMAINED A PLACE WHERE HANDSHAKE DEALS AND BACKROOM HAGGLING COUNT FOR A LOT THE ONLY OTHER PUBLICLY OWNED US CLOTHING MANUFACTURER OF THIS SIZE LIZ CLAIBORNE INC 1992 REVENUE 22 BILLION USES MORE SOPHISTICATED MARKETING SYSTEMS SUCH AS COMPUTER LINKS TO RETAILERS TO MONITOR DAILY SALES LESLIE FAY FOR THE MOST PART STILL CALLS STORES EACH WEEK AND TAKES DOWN SALES FIGURES BY HAND THE WAY SMALL MANUFACTURERS DO ALL OF WHICH WAS FINE FOR THE SMALLER HOMIER LESLIE FAY THAT EXISTED BEFORE THE 1980S THE COMPANY WHICH FIRST WENT PUBLIC IN 1952 WAS TAKEN PRIVATE IN A 1982 LEVERAGED BUYOUT AND THEN TWO YEARS LATER THE POMERANTZFAMILY STAKE WAS LARGELY BOUGHT OUT BY MANAGERS AND INVESTORS IN ANOTHER LBO THE SECOND BUYOUT BROUGHT JOHN POMERANTZ ABOUT 41 MILLION LEAVING HIM AND HIS WIFE WITH 17 MILLION SHARES OR 87 OF THE TOTAL OUTSTANDING THE LARGEST SINGLE POSITION BY THE TIME LESLIE FAY WENT PUBLIC FOR THE SECOND TIME IN 1986 MR POMERANTZ'S GROWING WEALTH WAS MATCHED BY A COMPANY THAT WAS GROWING FAST IN THE WHITEHOT MID1980S FASHION INDUSTRY LIKE OTHER GARMENTINDUSTRY FIRMS RIDING FASHION TRENDS LESLIE FAY WHICH SELLS CLOTHES UNDER THE LABELS LESLIE FAY ALBERT NIPON KASPER FOR ASL AND CASTLEBERRY KNITS SAW ITS STOCK GYRATE FROM 18 IN 1986 TO HALF THAT IN 1989 AND THEN BACK UP TO THE HIGH TEENS IN THE EARLY 1990S REVENUE CRESTED AT 859 MILLION FOR 1990 A TRIPLING IN A DECADE INTERNAL FINANCIAL CONTROLS THOUGH COULDN'T KEEP UP SAY SOME EMPLOYEES AND RETAIL CLIENTS THE COMPANY'S FINANCIAL MATTERS ARE HANDLED FAR FROM ITS NEW YORK CORPORATE HEADQUARTERS AT AN OFFICE IN WILKESBARRE PA SNIDELY REFERRED TO AS POLIWORLD BY EMPLOYEES THAT'S BECAUSE THE FINANCIAL BACKOFFICE WITH ABOUT 225 EMPLOYEES IS RULED BY ANOTHER SIGNIFICANT PRESENCE IN LESLIE FAY CHIEF FINANCIAL OFFICER PAUL POLISHAN MR POLISHAN NOW 46 IS AN ACCOUNTANT HIRED STRAIGHT OUT OF COLLEGE BY FOUNDER FRED POMERANTZ AND LIKE HIS LATE MENTOR IS ALSO SOMETHING OF A STREETFIGHTER COLLEAGUES DESCRIBE HIM AS A MAN WHO HAS A HAIRTRIGGER TEMPER AND IS NOT ABOVE UPBRAIDING SUBORDINATES IN PUBLIC WHEN ISSUING ORDERS HE HAS A HABIT OF JABBING A FINGER IN PEOPLE'S FACES HIS PINKIE RING GLITTERING WHILE JOHN POMERANTZ WAS RISING IN MANHATTAN AND PALM BEACH SOCIAL CIRCLES HOBNOBBING WITH CELEBRITIES HE HAD MET AS AN INVESTOR IN BROADWAY PLAYS AND TAKING CLIENTS ON THE ORIENT EXPRESS HE ONCE RENTED IT FOR A RAILWAY SOIREE ACROSS EUROPE MR POLISHAN WAS ESTABLISHING SOMETHING OF AN AUTOCRATIC RULE IN WILKESBARRE WHAT THE GROWING OPERATION MAY HAVE LACKED IN ORGANIZATION HE EVIDENTLY TRIED TO MAKE UP THROUGH FRENZIED EFFORT EMPLOYEES SAY THEY WERE SOMETIMES PUSHED TO WORK 16HOUR DAYS INCLUDING MANY WEEKENDS AND HOLIDAYS AND SOMETIMES WERE REPRIMANDED FOR ARRIVING AS LITTLE AS TWO MINUTES LATE TO WORK MR POLISHAN OFTEN FOCUSED ON SMALL DETAILS LIKE NOT ALLOWING EMPLOYEES MORE THAN ONE FAMILY PICTURE ON THEIR DESKS AND SPENDING WEEKS CHECKING INTO A FEW DOLLARS STOLEN FROM A BATHROOM TAMPON MACHINE SAY EMPLOYEES WHO HEARD HIM GROUSE ABOUT THE THEFT MR POLISHAN DECLINES TO BE INTERVIEWED TWO EXEMPLOYEES WHO HAVE LEFT WITHIN THE PAST YEAR SAY A COMMON FASHIONINDUSTRY FUDGE WAS PRACTICED AT WILKESBARRE IN WHICH INVOICES WOULD BE BACKDATED AND RECORDED AS REVENUE IN THE QUARTER BEFORE THEY WERE ACTUALLY RECEIVED IN ORDER TO MEET PROFIT GOALS AS LONG AS SALES REMAINED STRONG THE PRACTICE COULD GO UNDETECTED BUT AS THE RECESSION HIT RETAILERS IN 1991 IT BECAME MORE DIFFICULT TO COVER ONE QUARTER'S SHORTFALL WITH ANTICIPATED REVENUE FROM THE NEXT SAY SEVERAL CURRENT EMPLOYEES MR POMERANTZ SAYS SUCH BACKDATING PRACTICES HAVE NEVER OCCURRED AT LESLIE FAY AMONG DISCLOSURES IN LESLIE FAY'S ANNUAL REPORT FOR 1991 WAS THE DESCRIPTION OF THAT AS ONE OF THE MOST CHALLENGING YEARS WE HAVE FACED YET LESLIE FAY REPORTED ITS NET INCOME AS A HEALTHY 293 MILLION UP SLIGHTLY FROM 1990 FOR THIS PERFORMANCE MR POMERANTZ RECEIVED 36 MILLION IN PAY AND BONUS A 300000 DROP FROM 1990 BUT STILL IMPRESSIVE TWO OTHER OFFICERS HAVE HAD AN ARRANGEMENT LIKE HIS WHERE BONUSES ARE PAID IF THE COMPANY EXCEEDS 16 MILLION IN NET INCOME FOR THE YEAR BUT NO BONUS IS PAID IF NET FALLS SHORT OF THAT THEY ARE ALAN GOLUB 56 WHO WAS LESLIE FAY'S CHIEF OPERATING OFFICER AND PRESIDENT UNTIL HE RETIRED LAST DECEMBER FOR REASONS UNRELATED TO THE CURRENT ACCOUNTING SCANDAL WHO WAS PAID 24 MILLION IN 1992 AND MR POLISHAN WHO WAS PAID SALARY OF 245000 AND A BONUS SOMEWHERE BETWEEN 80000 AND 140000 IN 1992 THE COMPANY SAYS FOR A COMPANY THE SIZE OF LESLIE FAY 16 MILLION ISN'T EVEN 2 OF SALES SAYS HOWARD SCHILIT AN ACCOUNTING PROFESSOR AT AMERICAN UNIVERSITY IN WASHINGTON WHO HAS STUDIED THE COMPANY THAT'S MEDIOCRE PERFORMANCE AN ABSURDLY LOW LEVEL FOR SUCH BIG BONUSES TO KICK IN MR POMERANTZ DISAGREES POINTING OUT THAT HE HAS RECEIVED ROUGHLY THE SAME PAY AND BONUS EVERY YEAR SINCE 1982 PUBLICLY THERE DIDN'T SEEM MUCH TO WORRY ABOUT IN EARLY 1992 IN JANUARY THE STOCK REACHED 20 A SHARE AND IN FEBRUARY MR POMERANTZ TOLD SECURITIES ANALYSTS THAT EARNINGS FOR THE YEAR WOULD BE HIGHER THAN THEY WERE IN 1991 BUT BY EARLY SPRING SEVERAL LARGE RETAILERS SENSED GROWING ANXIETY AT LESLIE FAY THEY SAY MR POMERANTZ HAD AT THAT POINT BEEN CALLING THEM FOR AT LEAST A YEAR IMPLORING THEM TO TAKE MORE OF HIS COMPANY'S MERCHANDISE AND OFFERING TO PAY MARKDOWN MONEY COMPENSATION THAT MANUFACTURERS GIVE STORES IN CASH OR DISCOUNTS ON FUTURE ORDERS TO GUARANTEE PROFIT MARGINS IF THEY HAVE TO MARK DOWN GOODS THAT AREN'T MOVING IN THE CASE OF LESLIE FAY THE MARKDOWN MONEY AMOUNT WAS ESPECIALLY HIGH AND AT LEAST SOME OF IT WAS IN CASH SAY SEVERAL RETAILERS AN EXECUTIVE WITH ONE LARGE RETAIL CHAIN SAYS IT APPROACHED LESLIE FAY LAST YEAR FOR PAYMENT OF MORE THAN 1 MILLION IN MARKDOWN MONEY IT WAS OWED IF THEY WERE PAYING US SO MUCH WE ASSUMED THEY WERE PAYING OTHER STORES AS WELL THE EXECUTIVE SAYS MR POMERANTZ CONCEDES THAT LESLIE FAY PAID MARKDOWN ALLOWANCES IN THE MILLIONS LAST YEAR BUT SAYS THAT NONE OF IT WAS IN CASH HE WON'T COMPARE THE LEVEL WITH PRIOR YEARS GENERALLY SUCH PAYMENTS DON'T SHOW UP ON A GARMENT MAKER'S BALANCE SHEET INDUSTRY EXPERTS NOTE BECAUSE IF ONE RETAILER IS GETTING MARKDOWN MONEY IN CASH OTHERS WILL DEMAND IT IN CASH AS WELL RETAILERS SAY THEY COMPLAINED TO MR POMERANTZ THAT LESLIE FAY'S DRESS STYLES WERE TOO MATRONLY OR CLASSIC IN STYLE ALSO HURTING SALES LESLIE FAY'S STRATEGY CENTERED ON BIG DEPARTMENT STORES WHICH WERE ORDERING LESS AS DISCOUNTERS CUT INTO THEIR BUSINESS SOME RETAIL CHAINS SAY THEY HAVE CUT BACK ORDERS FROM LESLIE FAY IN THE PAST TWO YEARS BY AS MUCH AS 15 A FIGURE THAT MR POMERANTZ DOESN'T DISPUTE RETAILERS SAY THEY WERE HOUNDED LAST YEAR WITH WEEKLY PHONE CALLS FROM MR POMERANTZ AND HIS WIFE LAURA A LESLIE FAY SENIOR VICE PRESIDENT HEATEDLY DEMANDING THAT THEY STEP UP ORDERS THIS URGENCY WAS HIDDEN FOR THE MOST PART FROM INVESTORS BY MARCH SECURITIES ANALYSTS HAD ISSUED ROSY 1992 EARNINGS PROJECTIONS FOR LESLIE FAY A CONSENSUS FIGURE OF 2 A SHARE COMPARED WITH 155 IN 1991 ESTIMATES THE COMPANY DIDN'T DISPUTE BUT TWO MONTHS LATER OVER THE MEMORIAL DAY WEEKEND JOHN AND LAURA POMERANTZ OPENED THEIR WESTCHESTER COUNTY NY HOME TO A BEVY OF RETAIL EXECUTIVES FROM FEDERATED DEPARTMENT STORES MAY DEPARTMENT STORES AND TWO LARGE RETAIL BUYING ORGANIZATIONS TO DISCUSS WHY ORDERS WERE SLOWING FOR AN INTENSE 10 HOURS MR POMERANTZ AND OTHER TOP COMPANY OFFICIALS LISTENED WHILE STORE EXECUTIVES RECITED WHY LESLIE FAY DRESSES WEREN'T SELLING THE BRAND HAD TOO MANY STYLES ITS PRICES WERE TOO HIGH SOME STYLES WERE OUTOFDATE IN THE FACE OF THIS LITANY MR POMERANTZ ANNOUNCED ON JUNE 8 A CORPORATE BUYBACK OF UP TO A MILLION COMMON SHARES 5 OF THE TOTAL OUTSTANDING HE TERMED THE STOCK THEN 1375 A SHARE SHARPLY UNDERVALUED HIS PUBLIC ASSESSMENT FURTHER BUTTRESSED THE NOTION THAT BUSINESS WAS HEALTHY IN EARLY JULY MR POMERANTZ SAYS HE TOLD ANALYSTS WHO WERE PUZZLED BY RUMORS OF DECLINING SALES THAT INDEED FALL RETAIL ORDERS WEREN'T COMING IN AS WE HAD EXPECTED AND LESLIE FAY HAD BEGUN AGGRESSIVELY MARKING DOWN GOODS AT WHOLESALE YET ON JULY 14 THE COMPANY AFFIRMED IN A PRESS RELEASE ITS STRONG FINANCIAL POSITION AND AGAIN FORECAST 1992 EARNINGS ABOVE THE PREVIOUS YEAR THE BUYBACK AND PUBLIC OPTIMISM SEEMED TO HAVE AN EFFECT AND THE STOCK WAS AT 15 A SHARE BY EARLY SEPTEMBER BUT A FEW RETAIL ANALYSTS WERE GROWING EDGY DEBORAH BRONSTON OF PRUDENTIAL SECURITIES INC SAYS THAT ALL YEAR SHE FOUND MR POLISHAN THE CFO SLOW TO RETURN PHONE CALLS AND EVASIVE ABOUT RETAIL ORDER TRENDS AS SHE TRIMMED HER EARNINGS ESTIMATES FOR THE THIRD QUARTER AS SHE HAD IN PREVIOUS QUARTERS MS BRONSTON SAYS SHE RECEIVED AN IRATE CALL FROM MR POMERANTZ WHO COMPLAINED SHE WAS TOO PESSIMISTIC MR POMERANTZ NOW SAYS THAT LESLIE FAY HAD A SIXWEEK STRETCH ENDING IN SEPTEMBER WHEN WE WERE BEHIND IN SALES INITIALLY I FIGURED THAT WE'D MAKE IT UP LATER BECAUSE STORES WERE PLACING ORDERS LATER CLOSER AND CLOSER TO WHEN THE GARMENTS WERE DUE TO BE SOLD WHEN SALES DIDN'T REBOUND I FELT THAT WE HAD TO MAKE AN ANNOUNCEMENT SO IN MIDSEPTEMBER MR POMERANTZ SAID THAT LESLIE FAY PROJECTED A 40 DROP IN THIRDQUARTER EARNINGS THE STOCK FELL TO 1225 AND SHORTLY THEREAFTER CAME THE FIRST SHAREHOLDER SUIT BUT RATHER THAN DOWNSHIFTING PRODUCTION THE EXPECTED RESPONSE FROM APPAREL MANUFACTURERS WHEN FACED WITH SLOW SALES AND EXCESS INVENTORY LESLIE FAY SAYS IT DECIDED IN SEPTEMBER TO CUT PRICES 20 ACROSS THE BOARD FOR FUTURE ORDERS IN THE HOPES OF FATTENING ORDERS IN THE COMING YEAR RETAIL EXECUTIVES AWARE OF SLUMPING DEMAND FOR LESLIE FAY DRESSES IN THEIR STORES WERE CONFUSED WHEN YOU CUT 20 OUT YOU MUST GET DRAMATICALLY LARGE ORDERS TO MAKE UP FOR IT SAYS ONE WE WERE WONDERING HOW THEY COULD CONTINUE TO MAKE A PROFIT IN HINDSIGHT OF COURSE LESLIE FAY MAY NOT HAVE BEEN MAKING MONEY AT THAT POINT MR POMERANTZ SAYS THAT THE CONTROLLER'S SCHEME SINCE 1991 WAS TO OVERSTATE THE NUMBER OF GARMENTS MADE WHILE UNDERSTATING THE MANUFACTURING COST OF EACH ITEM AS A WAY TO INFLATE PROFITS UNDER THAT SCENARIO LESLIE FAY'S ODD STRATEGY OF COUNTERING SLUGGISH SALES BY FLOODING STORES WITH DISCOUNTED DRESSES WOULD HAVE INFLATED PHANTOM PROFITS AS THE COST PER GARMENT WAS UNDERSTATED MR POMERANTZ DENIES ANY KNOWLEDGE OF THE ACTIVITIES OF THE CONTROLLER MR KENIA BUT ACKNOWLEDGES BEING IN CLOSE TOUCH WITH THE WILKESBARRE OFFICE TALKING TO MR POLISHAN ALMOST EVERY DAY THE CHIEF FINANCIAL OFFICER WOULD ALSO VISIT THE COMPANY'S MANHATTAN HEADQUARTERS TWO OR THREE DAYS A WEEK IN ANY EVENT THE COMPANY IN OCTOBER REPORTED THIRDQUARTER NET INCOME WAS DOWN 29 NOT INCLUDING AN EXTRAORDINARY GAIN IN THE PREVIOUS YEAR ON FLAT REVENUE NET INCOME IN THE FIRST NINE MONTHS WAS 23 MILLION COMPARED WITH 28 MILLION IN THE YEAREARLIER PERIOD MR POMERANTZ SAYS NOW HE WON'T KNOW WHAT THE COMPANY'S ACTUAL FINANCIAL CONDITION WAS LAST YEAR UNTIL HE GETS THE ARTHUR ANDERSEN AUDIT REPORT LAST MONTH MR POMERANTZ PUT HIS MEDITERRANEANSTYLE PALM BEACH ESTATE UP FOR SALE FOR 12 MILLION HE RARELY VISITED THE PLACE HE SAYS AND HAD BEEN INTENDING FOR A YEAR TO PUT IT ON THE MARKET I COULDN'T GET DOWN TO MY HOUSE BECAUSE I WORK TOO HARD HE SAYS IT HASN'T YET SOLD THE CHAIRMAN SAYS HE FIRST LEARNED OF THE ACCOUNTING IRREGULARITIES ON FRIDAY JAN 29 WHEN HE WAS CALLED OUT OF A BUSINESS MEETING IN TORONTO TO TAKE A PHONE CALL FROM MR POLISHAN WHO TOLD HIM THAT MR KENIA HAD WALKED INTO HIS OFFICE THAT DAY JUST BEFORE THE COMPANY'S YEAREND AUDIT BY BDO SEIDMAN AND CONFESSED TO MAKING FALSE ENTRIES INTO THE COMPANY'S BOOKS MR KENIA 40 A TALL QUIET 15YEAR VETERAN WITH THINNING BLOND HAIR AND A BEARD IS DESCRIBED BY A HALFDOZEN COLLEAGUES AS A STRAITLACED EMPLOYEE WHOSE WORK IS CLOSELY OVERSEEN BY MR POLISHAN MR KENIA WHO WOULD NOT RETURN PHONE CALLS SEEKING COMMENT RECEIVED A 1992 SALARY OF 116000 AND A 20000 BONUS WHICH WAS AT MR POLISHAN'S DISCRETION AND UNRELATED TO OVERALL COMPANY PERFORMANCE SAYS MR POMERANTZ MR POMERANTZ SAYS THAT AFTER BDO SEIDMAN ACCOUNTANTS INITIALLY GRILLED MR KENIA THE COMPANY ASCERTAINED THAT EARNINGS FOR 1992 MAY BE WIPED OUT AND 1991 EARNINGS MAY NEED TO BE RESTATED ON MONDAY FEB 1 THE COMPANY MADE ITS PUBLIC ANNOUNCEMENT LESLIE FAY SHARES TRADING AT 12 WHEN THE NEWS BROKE CLOSED AT 6875 ON COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MR POMERANTZ AND HIS WIFE HAVE SUFFERED A PAPER LOSS OF ABOUT 86 MILLION ON FEB 11 MR POMERANTZ SAID THAT LESLIE FAY HAD PAID ABOUT 90 OF ITS 1992 BONUSES IN DECEMBER IN ANTICIPATION OF POSSIBLE 1993 TAX CHANGES MR POMERANTZ ALSO SAID ON FEB 11 THAT IF THE AUDIT INDICATED LESLIE FAY HADN'T MET ITS 16 MILLION BONUS THRESHOLD THE BONUS MONEY WOULD BE RETURNED IN AN INTERVIEW LATE LAST WEEK MR POMERANTZ SAID ALL THE BONUSES HAVE BEEN RETURNED TO COMPANY COFFERS 9302230037 930223 JUDGE HOLDS UP PRUDENTIAL ACCORD TO SEEK MORE DATA BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE IN NEW ORLEANS SAID HE HAS SERIOUS RESERVATIONS ABOUT A PROPOSED SETTLEMENT THAT PRUDENTIAL SECURITIES INC IS SEEKING WITH ABOUT 137000 PEOPLE WHO INVESTED MORE THAN 14 BILLION IN OIL AND GAS PARTNERSHIPS IT SOLD US DISTRICT JUDGE MARCEL LIVAUDAIS SAID HE WASN'T PREPARED TO DECIDE ON THE FAIRNESS OF THE SETTLEMENT WHICH WOULD RETURN TO INVESTORS A SMALL FRACTION OF THEIR ORIGINAL INVESTMENT UNTIL INVESTIGATIONS OF THE SOURED PARTNERSHIPS BY SEVERAL STATES ARE COMPLETED HE ALSO INDICATED THAT THERE WASN'T ENOUGH INFORMATION COLLECTED YET THROUGH LEGAL DISCOVERY TO MAKE AN ADEQUATE FAIRNESS RULING THE JUDGE HELD THE FIRST FAIRNESS HEARING ON THE PROPOSED SETTLEMENT EARLIER THIS MONTH THE SETTLEMENT PLAN HAS RECEIVED MUCH PUBLICITY PARTICULARLY ABOUT ITS TERMS AND THE MANNER IN WHICH THE INVESTORS WERE REQUIRED TO CHOOSE TO PARTICIPATE IN THE SETTLEMENT ATTORNEYS FOR SOME OF THE INVESTORS WHO HAVE SUED OR GONE TO ARBITRATION WITH THE UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA SAID THE SETTLEMENT WOULD PROVIDE ONLY A FEW PENNIES ON THE DOLLAR ALSO INDIVIDUAL INVESTORS WERE MAILED A THICK SETTLEMENT DOCUMENT A FEW MONTHS AGO AND REQUIRED TO INDICATE BY LATE JANUARY IF THEY DIDN'T WANT TO PARTICIPATE IN THE SETTLEMENT BY NOT PARTICIPATING INVESTORS RETAIN THE RIGHT TO TAKE THEIR OWN LEGAL ACTION AGAINST PRUDENTIAL PRUDENTIAL AND GRAHAM RESOURCES INC A COVINGTON LA ORGANIZER OF ENERGY PARTNERSHIPS RAISED MORE THAN 14 BILLION IN THE PARTNERSHIPS BETWEEN 1983 AND 1990 THE SETTLEMENT PLAN CONSISTS OF A 37 MILLION CASH PAYMENT PLUS THE CARRIED EQUITY INTERESTS IN THE PARTNERSHIPS WHICH WOULD BE CONVERTED TO AN OPERATING COMPANY GRAHAM ENERGY RESOURCES INC JUDGE LIVAUDAIS SAID THAT MANY OF THE PEOPLE WHO PUT THEIR MONEY INTO THE SERIES OF PARTNERSHIPS KNOWN AS THE PRUDENTIALBACHE ENERGY INCOME PARTNERSHIPS WERE NOT SOPHISTICATED INVESTORS AND MAY STAND TO LOSE OVER 90 OF THE VALUE OF THEIR INITIAL INVESTMENT THE JUDGE WARNED HOWEVER THAT WHILE THE COURT NEITHER EXPLICITLY APPROVES NOR DISAPPROVES THE SETTLEMENT IT HAS NO INTENTION WHATSOEVER OF REWRITING THE SETTLEMENT AGREEMENT FIVE STATES ARIZONA CALIFORNIA ILLINOIS IDAHO AND SOUTH CAROLINA ARE COOPERATING IN AN INVESTIGATION INTO PRUDENTIAL'S SALE OF THE PARTNERSHIPS AND FILED OBJECTIONS TO THE PROPOSED SETTLEMENT WHICH THE JUDGE NOTED WAYNE KLEIN CHIEF SECURITIES REGULATOR FOR IDAHO THE LEAD STATE IN THE INQUIRY SAID THE STATES WERE VERY PLEASED WITH THE OPINION A PRUDENTIAL SPOKESMAN SAID IT WAS IMPORTANT TO NOTE THAT THE JUDGE SAID NEITHER YES NOR NO TO THE SETTLEMENT HE SAID THE SECURITIES FIRM WAS CONFIDENT THAT AS MORE FACTS COME TO LIGHT PEOPLE WILL SEE THIS AS A FAIR SETTLEMENT 9302230036 930223 TECHNOLOGY & MEDICINE PROSECUTORS LAUNCH GRANDJURY INQUIRY OF SYMANTEC EXECUTIVES IN SECRETS CASE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL PROSECUTORS IN A TRADESECRETS CASE HAVE LAUNCHED A GRANDJURY INVESTIGATION OF EXECUTIVES AT SYMANTEC CORP ONE OF THE NATION'S 10 LARGEST SUPPLIERS OF SOFTWARE FOR PERSONAL COMPUTERS PEOPLE FAMILIAR WITH THE CASE SAY THE DISTRICT ATTORNEY'S OFFICE OF SANTA CRUZ COUNTY CALIF HAS INVESTIGATED SYMANTEC AND ITS EMPLOYEES SINCE SEPTEMBER AFTER AN EMPLOYEE OF RIVAL BORLAND INTERNATIONAL INC EUGENE WANG JUMPED TO SYMANTEC ALLEGEDLY BRINGING WITH HIM CONFIDENTIAL COMPANY MATERIAL INVESTIGATORS LATER FOUND BORLAND MEMOS AND OTHER ALLEGEDLY CONFIDENTIAL INFORMATION IN THE HOME AND CAR OF GORDON EUBANKS SYMANTEC'S CHIEF EXECUTIVE OFFICER ONE PERSON FAMILIAR WITH THE PROCEEDING SAID THE GRAND JURY COULD HAND UP INDICTMENTS AGAINST SYMANTEC EXECUTIVES AS EARLY AS NEXT WEEK A SPOKESMAN FOR SYMANTEC DECLINED TO COMMENT THE SANTA CRUZ DISTRICT ATTORNEY'S OFFICE DECLINED TO COMMENT CITING ITS PRACTICE OF NOT DISCLOSING GRANDJURY ACTIVITIES BORLAND WOULDN'T COMMENT ON THE DEVELOPMENTS THE ALLEGATIONS AGAINST SYMANTEC HAVE RECEIVED WIDE SCRUTINY IN THE COMPUTER AND SOFTWARE INDUSTRIES WHERE EMPLOYEES FREQUENTLY CHANGE JOBS AND IT IS NOT UNCOMMON FOR COMPANIES TO FILE CIVIL LAWSUITS AGAINST ONE ANOTHER IN AN EFFORT TO RESTRAIN THE FLOW OF INFORMATION HOWEVER IT IS RARE FOR CHARGES OF TRADESECRETS THEFT TO END UP IN A CRIMINAL INVESTIGATION BUT IN THIS CASE SYMANTEC LEFT AN ELECTRONIC TRAIL THAT INDICATED MR WANG HAD SENT MESSAGES TO MR EUBANKS AND THAT INFORMATION ALLEGEDLY INCLUDED SPECIFICATIONS FOR FUTURE BORLAND PRODUCTS AND THE COMPANY'S MARKETING PLANS FOR 1993 EXPERTS IN TRADESECRETS LAW POINT OUT THAT FOR PROSECUTORS TO MAKE A CRIMINAL CASE STICK THEY MUST SHOW THAT SYMANTEC LIFTED INFORMATION FROM BORLAND THAT HAS TECHNICAL OR SCIENTIFIC VALUE THEFT OF COMMERCIAL INFORMATION IS GROUNDS FOR A CIVIL BUT NOT CRIMINAL ACTION THESE LAWYERS SAY THE MAIN THRUST OF SYMANTEC'S DEFENSE OUGHT TO DEMONSTRATE THAT ANY INFORMATION SPIRITED FROM BORLAND BY MR WANG DOES NOT MEET THE CRIMINAL TEST INDICTMENTS AGAINST ANY SYMANTEC EXECUTIVES COULD COMPLICATE THE COMPANY'S PROSPECTS BUT ANALYSTS SAY THE STOCK PRICE ALREADY REFLECTS THE DEVELOPMENTS ANY FURTHER DROP IN THE PRICE OF SYMANTEC'S SHARES WOULD DEPEND ON WHAT NEW INFORMATION THE INDICTMENTS REVEALED SAYS RICHARD SHERLUND A GOLDMAN SACHS & CO ANALYST IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SYMANTEC SHARES FELL 375 CENTS TO 11125 THE STAKES IN THE CRIMINAL CASE WOULD BE HIGH FOR OTHER REASONS BORLAND HAS FILED A CIVIL LAWSUIT AGAINST SYMANTEC OVER THE MATTER AND ITS CASE WILL BE BOLSTERED OR WEAKENED DEPENDING ON THE OUTCOME OF THE CRIMINAL CASE THEN THERE IS THE EFFECT OF THE PROCEEDING ON MR EUBANKS ONE OF THE MOST SUCCESSFUL SOFTWARE EXECUTIVES HE PERSONALLY BUILT SYMANTEC INTO AN INDUSTRY POWERHOUSE 9302230035 930223 MATTER OF PRINCIPLE HIGH SCHOOL IN EL PASO GIVES THE BORDER PATROL A CIVILRIGHTS LESSON FEDERAL JUDGE TELLS AGENTS LOOKING FOR ILLEGAL ALIENS STOP HARASSING STUDENTS MAVERICK EDUCATOR'S CRUSADE BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL EL PASO TEXAS PAUL STRELZIN KNEW HE FACED SERIOUS PROBLEMS WHEN HE BECAME PRINCIPAL OF BOWIE HIGH SCHOOL LAST JULY WEDGED BETWEEN THE HARDSCRABBLE SEGUNDO BARRIO AND THE INTERNATIONAL BOUNDARY FENCE JUTTING UP FROM THE RIO GRANDE'S NORTH BANK THE VIRTUALLY ALLHISPANIC SCHOOL WAS BESET BY GANG PROBLEMS A SOARING DROPOUT RATE AND FACILITIES SO DETERIORATED THAT THE FOOTBALL TEAM HAD TO BEG FOR ICE FROM A NEARBY RESTAURANT VOWING TO CREATE AN OASIS FOR STUDENTS THE BLUNTSPOKEN FORMER SPORTS ANNOUNCER CALLED RIVAL GANGS IN FOR PEACE TALKS OPENED THE LIBRARY AT NIGHT AND PUT A JUKEBOX IN THE CAFETERIA STILL HE RECALLS IT FELT LIKE THERE WAS A LITTLE BLACK CLOUD HANGING OVER THIS SCHOOL THAT CLOUD TURNED OUT TO BE THE US BORDER PATROL IN PURSUIT OF ILLEGAL ALIENS ITS PALE GREEN CHEVY SUBURBANS SPED DOWN CAMPUS ACCESS ROADS AND RACED ACROSS LAWNS AND ATHLETIC FIELDS AGENTS OCCASIONALLY BURST INTO SCHOOL BUILDINGS AND USED BINOCULARS TO WATCH THE MARCHING BAND MR STRELZIN ALSO HEARD RUMORS THAT HIS STUDENTS AND STAFF WERE BEING INTERROGATED ROUGHED UP AND DETAINED BUT WHEN HE FIRST ASKED THEM ABOUT IT SOME SHRUGGED OTHERS WOULDN'T TALK AND A FEW SAID THERE WAS NOTHING TO BE DONE THE BROOKLYNBORN EDUCATOR QUICKLY DECIDED OTHERWISE FOR MY STUDENTS IN EL PASO HE SAYS SHAKING HIS FIST THE DECLARATION OF INDEPENDENCE STARTED IN THE SUMMER AND FALL OF 1992 THE RESULTING REBELLION TRIGGERED A FEDERAL LAWSUIT LAST OCTOBER BY A GROUP OF BOWIE STUDENTS AND STAFF MEMBERS WHO ACCUSE THE BORDER PATROL OF VIOLATING THEIR CONSTITUTIONAL RIGHTS IN A COMMUNITY WHERE COMPLAINING PUBLICLY ABOUT THE BORDER PATROL HAS LONG BEEN SEEN AS FUTILE AND PERHAPS DANGEROUS THE LAWSUIT RENEWED OLD FEARS WHILE RAISING NEW HOPES IT WAS ALSO A STARK NEW EXAMPLE OF THE DIFFICULTIES OF ENFORCING IMMIGRATION LAW ALONG THE 2000MILE LINE THAT DIVIDES MEXICAN ASPIRATIONS AND US PROMISE LOCATED A FEW MILES EAST OF DOWNTOWN EL PASO BOWIE HIGH HAS BEEN ONE OF THE PLACES WHERE THE BORDER FENCES ARE THE HARDEST TO KEEP REPAIRED BUILT UPON A FLAT 100ACRE STRIP OF LAND THAT WAS ONCE A MELON FIELD ITS DRAB STONE BUILDINGS LOOK LIKE TINY FORTRESSES HUDDLED AROUND A SPRAWLING CONCRETE PLAZA FOR STUDENTS CROSSING THE PLAZA BETWEEN CLASSES THE ONLY VIEW IS THE RIO GRANDE LEVEE WHICH RISES UP A FEW HUNDRED YARDS TO THE SOUTH ON THE OTHER SIDE JUST BELOW THE TALL STEEL FENCE THAT RUNS ACROSS THE LEVEE'S RIDGE MEXICANS WADE THE SHALLOW RIVER AND OTHERS PAY TO BE FLOATED ACROSS ON CRUDE FERRIES MADE OF OLD INNER TUBES AND BOARDS FROM THE LEVEE FENCE WOULDBE IMMIGRANTS HAVE A CLEAR VIEW OF ANY BORDER PATROL ACTIVITY THANKS TO THE WIDEOPEN BOWIE CAMPUS SOME CROSS DURING THE CONFUSION OF CLASS CHANGES AND CARRY BOOKS TO BLEND IN WITH BOWIE'S 2200 STUDENTS FOR THOSE WHO MAKE IT THE MAZELIKE STREETS OF THE HOUSING PROJECT THAT ABUTS THE NORTHERN EDGE OF THE SCHOOL PROPERTY INHIBIT PURSUIT AND NEARBY RAIL YARDS AND BUS STOPS PROVIDE A QUICK EXIT THE BORDER PATROL ALREADY HARRIED BY THINLY STRETCHED RESOURCES HIGH TURNOVER AND MOUNTING VIOLENCE FROM GANGS BANDITS AND DRUG SMUGGLERS IS EXPECTED TO HOLD THE LINE I TRY TO BE AS HUMANITARIAN AS I CAN BE AND STILL DO MY JOB SAYS VETERAN AGENT JAVIER NADA BUT IT'S A VERY UNPOPULAR LAW THAT WE ENFORCE BORDER PATROL COMMANDERS BRISTLE AT THE SUGGESTION THAT THEY SINGLE ANYONE OUT BECAUSE OF SKIN COLOR WE DON'T STOP PEOPLE ON MERE HISPANIC APPEARANCE ASSERTS STEPHEN L WILLIAMS DEPUTY CHIEF OF THE PATROL'S 600AGENT EL PASO CONTINGENT THE SECOND LARGEST AFTER SAN DIEGO'S ALONG THE BORDER WITH MEXICO AGENTS CAN LEGALLY QUESTION PEOPLE ABOUT THEIR IMMIGRATION STATUS BUT CAN DETAIN THEM OR REQUIRE THEM TO ANSWER ONLY WITH REASONABLE SUSPICION THAT THEY ARE HERE ILLEGALLY GROUNDS FOR SUCH SUSPICION SAYS MR WILLIAMS INCLUDE WALKING DOWN A KNOWN ROUTE OF TRAVEL WEARING CLOTHES MADE OF MEXICANMADE FABRIC OR GIVEN A THIRD WORLD HEALTH AND DIET HAVING A GENERALLY THIN OR SICKLY APPEARANCE AN AMERICAN JUST LOOKS LIKE AN AMERICAN HE SAYS IF YOU'VE TRAVELED ABROAD YOU KNOW WHAT I MEAN BOWIE HIGH WRESTLER DAVID RENTERIA WAS WEARING A CHICAGO BULLS SHIRT AND BLUE JEANS WHEN HE AROUSED THE SUSPICIONS OF TWO AGENTS LAST JUNE 3 AS HE WALKED HOME FROM SCHOOL THIS WAS THE DAY THE MEXICANBORN 19YEAROLD A NATURALIZED CITIZEN WHO WAS BORN PARTIALLY BLIND WAS TO RECEIVE HIS HIGHSCHOOL DIPLOMA AND SO IN ENGLISH HE PROUDLY TOLD THE AGENTS HE WAS A US CITIZEN AND KEPT ON WALKING HE SAYS THAT ONE OF THEM THEN GRABBED HIS ARM PUSHED HIM FACEFIRST INTO A FENCE AND KICKED HIS LEGS TO FRISK HIM THE BORDER PATROL DENIES THAT ANY ABUSE TOOK PLACE THERE WAS NO GROUNDSWELL OF OUTRAGE OR SUPPORT WHEN MR RENTERIA TOLD HIS STORY TO A FEW LOCAL REPORTERS AND LOCAL LAWYERS WEREN'T EAGER TO PURSUE THE CASE FEW HISPANIC RESIDENTS OF THE SEGUNDO BARRIO RELISHED THE IDEA OF TAKING ON A WELLARMED FEDERAL AGENCY THAT FOR GENERATIONS HAS BEEN A POWERFUL PRESENCE IN THEIR COMMUNITY A PLACE WHERE SOME PARENTS FEARING AN ACCIDENTAL DEPORTATION DON'T LET THEIR CHILDREN LEAVE HOME IN THE MORNING WITHOUT THEIR BIRTH CERTIFICATES LEGAL RESIDENTS SELDOM PROTEST FEARING DEPORTATION OR DENIAL OF CITIZENSHIP AND MANY US CITIZENS ARE HUMILIATED TO HAVE BEEN MISTAKEN FOR A CRIMINAL OR SOMETHING OTHER THAN A US CITIZEN YOU WOULDN'T EVEN TELL YOUR FRIENDS ABOUT IT SIGHS BOWIE HIGH SECRETARY GRACE HERNANDEZ WHO WAS ONCE FOLLOWED HOME AND QUESTIONED AFTER AGENTS SAW HER JOGGING ON CAMPUS AFTER SCHOOL BOWIE HISTORY TEACHER JUAN SYBERTCORONADO TRIED TO PUNCTURE THE SILENCE BY TALKING TO HIS CLASSES AND HISPANIC STUDENT GROUPS ABOUT THEIR CONSTITUTIONAL RIGHTS BUT WHILE A HANDFUL OF STUDENTS TOLD HIM THEIR STORIES PRIVATELY FEW WOULD SPEAK ABOUT THEM PUBLICLY OR EVEN TO EACH OTHER IT WAS EMBARRASSING TO THE KIDS TO BE IDENTIFIED AS ANYTHING BUT ALLAMERICAN HE SAYS THEY WERE ASHAMED SO WAS BENJAMIN MURILLO THE BEEFY DEFENSIVE COORDINATOR FOR THE BOWIE FOOTBALL TEAM IN NOVEMBER 1991 HE AND TWO PLAYERS WERE DRIVING TO A SATURDAY MORNING GAME WHEN THE BORDER PATROL STOPPED THEM IN A DAIRY QUEEN PARKING LOT ONE OF THE AGENTS ALLEGEDLY POINTED A GUN AT MR MURILLO'S HEAD AND ORDERED HIM OUT OF THE CAR EVEN AFTER ANOTHER BOWIE COACH DROVE UP AND IDENTIFIED THE TRIO THEY WERE FRISKED AND QUESTIONED ALLEGEDLY BECAUSE SOME POSSIBLE DRUG DEALERS MATCHING THEIR DESCRIPTIONS HAD BEEN SPOTTED CROSSING THE RIVER FOR MONTHS AFTERWARD THE COACH SELDOM DISCUSSED THE INCIDENT NOR DID HE FILE A COMPLAINT SINCE THE FEW THAT HAD BEEN MADE TO SCHOOL ADMINISTRATORS HAD NEVER GONE ANYWHERE I NEVER DID ANYTHING ABOUT IT THE 37YEAROLD EL PASO NATIVE ADMITS SHAKING HIS HEAD DOWN HERE IT'S ALMOST ANOTHER EVENT DURING THE DAY LIKE EATING LUNCH BUT THAT CHANGED DRAMATICALLY WITH THE ARRIVAL OF THE FEISTY MR STRELZIN A HULKING 52YEAROLD GIVEN TO STRUTTING AROUND THE CAMPUS IN JEANS AND A WINDBREAKER AND GREETING STUDENTS MALE AND FEMALE WITH YOU'RE DYNAMITE BABY SINCE DRIVING INTO TOWN FOR THE FIRST TIME IN A CORVETTE CONVERTIBLE IN 1966 THE STRELZ HAD BEEN A TEACHER AND PRINCIPAL AT SEVERAL LOCAL SCHOOLS STILL HE WAS BETTER KNOWN AS THE TV PITCHMAN FOR AN AUTOPARTS CHAIN THE MASTER OF CEREMONIES AT COUNTLESS LOCAL BANQUETS AND THE OUTSPOKEN GAME ANNOUNCER FOR LOCAL HIGH SCHOOL COLLEGE AND SEMIPRO TEAMS AS ANNOUNCER FOR THE TEXAS LEAGUE'S EL PASO DIABLOS BASEBALL TEAM HE RAZZED LOCAL DIGNITARIES FROM THE PRESS BOX COACHED VENDORS ON PEANUTSELLING TECHNIQUES AND GOT EJECTED FROM THE PARK FOR CHALLENGING AN UMPIRE'S CALL BY PLAYING A LINDA RONSTADT SONG THAT BEGINS WITH THE LINE I'VE BEEN CHEATED WHILE HE IS A WELLOFF ANGLO WHO LIVES IN A TONY NEIGHBORHOOD FAR FROM BOWIE HIGH HIS WIFE WAS BORN IN MEXICO AND HIS THREE DAUGHTERS CONSIDER THEMSELVES MEXICANAMERICANS AFTER GETTING WORD OF THE INCIDENTS INVOLVING HIS SECRETARY MS HERNANDEZ AND COACH MURILLO HE INVITED LOCAL BORDER PATROL COMMANDERS TO HIS OFFICE TO HEAR THEIR STORIES WHEN THAT MEETING FAILED TO PRODUCE IMMEDIATE RESULTS HE COMPLAINED PUBLICLY AT A SCHOOLBOARD MEETING NOTIFIED THE LOCAL CONGRESSMAN AND DESCRIBED INCIDENTS HE'D HEARD ABOUT IN AN INTERVIEW WITH A LOCAL COLUMNIST DURING THE FIRST WEEK OF SCHOOL MR STRELZIN MET WITH A HISPANIC STUDENT GROUP AND SAID HE NEEDED TO HEAR ALL OF THEIR STORIES BEFORE HE COULD DO ANYTHING HE BASICALLY SAID IT WAS GOING TO STOP RECALLS MR SYBERTCORONADO THE GROUP'S FACULTY ADVISER NO ONE ON THAT LEVEL HAD EVER TRIED FOR THEM BEFORE AS HIS STUDENTS TALKED THE PRINCIPAL BEGAN TELLING THEIR STORIES WITHOUT USING NAMES ON TALK SHOWS AND IN THE PRESS THE RESULTING PUBLICITY SEEMED TO BREAK SOME SORT OF PSYCHIC LOGJAM EIGHT HUNDRED STUDENTS AND FACULTY SIGNED A PETITION ASKING THE BORDER PATROL TO REPAIR FENCE HOLES NEAR THEIR CAMPUS TWO DOZEN OTHERS CAME FORWARD WITH STORIES OF ABUSE OR QUESTIONABLE DETENTIONS MORE CAME FORWARD WHEN A LOCAL HISPANICRIGHTS GROUP BROUGHT IN SOME SAN ANTONIO CIVILRIGHTS LAWYERS TO TAKE AFFIDAVITS FOR A POSSIBLE LAWSUIT IT JUST KEPT EXPLODING RECALLS LAWYER ROBERT GREENBLUM IT WAS JUST ONE AFTER ANOTHER NEIDEN SUSIE DIAZ 17 YEARS OLD TOLD THEM A STORY SHE HAD KEPT SECRET EVEN FROM HER MOTHER FOR TWO YEARS SHE SAID A BORDER PATROL AGENT STOOD ON HER CHEST WITH ONE BOOT AND KICKED HER WITH THE OTHER CAUSING DEEP LEG AND CHEST BRUISES THE BORDER PATROL HAS SINCE LOOKED INTO HER COMPLAINT BUT HAS NOT BEEN ABLE TO DETERMINE THE IDENTITY OF THE AGENT INVOLVED IT'S LIKE A WHOLE MOUNTAIN DROPS ON YOU LAMENTS HER MOTHER JOSEFINA DIAZ WHO LIKE MOST PARENTS DIDN'T FIND OUT HER CHILD WAS INVOLVED IN THE RESULTING LAWSUIT UNTIL THE NIGHT BEFORE THE FIRST HEARING AT THAT OCT 20 SESSION THE PLAINTIFFS ASKED FOR AN ORDER BARRING THE BORDER PATROL FROM UNWARRANTED SEARCHES OF BOWIE STUDENTS AND STAFF AT THE HEARING THE LOCAL BORDER PATROL CHIEF SAID HE WOULD INVESTIGATE THE INCIDENTS BUT COMPLAINED THAT NONE OF THE PLAINTIFFS HAD REPORTED THEM TO HIS OFFICE IN A TIMELY MANNER THE AGENTS INVOLVED FILED AFFIDAVITS DENYING ANY ABUSES AFTER CONSIDERING THE EVIDENCE US DISTRICT JUDGE LUCIUS BUNTON GRANTED THE PLAINTIFFS' REQUEST FOR A RESTRAINING ORDER AND GAVE THEIR LAWYERS PERMISSION TO SEEK OTHER POTENTIAL VICTIMS AND PURSUE A POSSIBLE CLASSACTION SUIT THE GOVERNMENT'S INTEREST IN ENFORCING IMMIGRATION LAWS DOES NOT OUTWEIGH THE PROTECTION OF THE RIGHTS OF UNITED STATES CITIZENS AND PERMANENT RESIDENTS TO BE FREE FROM UNREASONABLE SEARCHES AND SEIZURES THE JUDGE RULED IN DECEMBER ADDING THAT BECAUSE OF THEIR HISPANIC APPEARANCE THE PLAINTIFFS HAD BEEN REPEATEDLY STOPPED QUESTIONED DETAINED FRISKED SEARCHED AND ARRESTED WITHOUT LEGAL CAUSE AND HAVE BEEN SUBJECT TO VERBAL AND PHYSICAL ABUSE AS WORD OF THE RULING SPREAD AT BOWIE SOME CLASSES ERUPTED IN APPLAUSE AND STOMPING THEY WERE DANCING IN THE AISLES MR STRELZIN ADMITS EVERYBODY WAS CONGRATULATING EVERYBODY ALTHOUGH SOME SCHOOLDISTRICT OFFICIALS GRUMBLED ABOUT THE UPROAR MOST REMAINED SUPPORTIVE OF THE PRINCIPAL THERE WERE FORCES THAT TRIED TO STOP PAUL FROM SPEAKING OUT BUT IT WAS TOO LATE WHEN THEY TRIED SAYS RICHARD TELLES THE SCHOOL BOARD'S VICE PRESIDENT I SUPPORT HIM WHOLEHEARTEDLY THE MAN HAS DONE A TREMENDOUS JOB OF DEFENDING HIS STUDENTS TWO MONTHS LATER THE LAWYERS STILL SEEKING A PERMANENT INJUNCTION AGAINST THE BORDER PATROL AND PERHAPS MONEY DAMAGES ARE STILL INTERVIEWING POTENTIAL PLAINTIFFS THE BORDER PATROL IS ALL BUT GONE FROM THE BOWIE CAMPUS AND THE STUDENTS WHO TOOK THEM ON REMAIN HEROES AMONG MANY OF THEIR CLASSMATES NOW I HAVE A VOICE SENIOR MIKE BANVELOS SAYS AS CLASSMATES SITTING AROUND HIM IN THE BUSTLING CAFETERIA NOD IN AGREEMENT BUT AFTER GENERATIONS OF FEAR SUCH FEELINGS OF EMPOWERMENT AND PRIDE REMAIN TENUOUS ONE FEARFUL COUPLE FORCED THEIR SON TO WITHDRAW AS A PLAINTIFF AND OTHER PARENTS HAVE ORDERED LAWYERS NOT TO INTERVIEW THEIR CHILDREN SOME OF THE STUDENTS INVOLVED IN THE SUIT SAY THEY FULLY EXPECT THEIR PARENTS' FEARS OF RETRIBUTION TO BE REALIZED YOU DON'T KNOW HOW IT'S GOING TO COME SAYS STUDENT ALBERT VASQUEZ BUT IT'S GOING TO COME IN A DEEPLY CONSERVATIVE CITY WHERE MEXICANAMERICANS ARE ONLY NOW ASSUMING POLITICAL POWER THE PLAINTIFFS ARE STILL BERATED ON LOCAL CALLIN SHOWS AND IN LETTERS TO AREA NEWSPAPERS I GOT A LETTER FROM A MAN WHO WANTED TO KNOW WHY I WAS IN LOVE WITH MY BROWN BABIES DOWN HERE MR STRELZIN SAYS BUT WE PLANTED THE SEED HE ADDS DEFIANTLY AND THE TREE GROWS 9302230034 930223 ECONOMY SERVICE SECTOR FEELS SLIGHTED BY TAX PLAN INCENTIVES FOR MANUFACTURERS WON'T ADD JOBS CRITICS SAY BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MUCH TO THE CHAGRIN OF THE NATION'S SERVICE SECTOR THE CLINTON ADMINISTRATION'S TAX PACKAGE APPEARS TO GIVE A BIG BOOST TO CAPITALINTENSIVE COMPANIES INSTEAD NO INDUSTRY OF COURSE IS HAPPY WITH THE PROPOSAL TO RAISE THE TOP CORPORATE TAX RATE TO 36 FROM 34 HOWEVER SOMEWHAT IRONICALLY FOR A NEW KIND OF DEMOCRAT A GOOD NUMBER OF THE TAX INCENTIVES INCLUDED IN THE PRESIDENT'S PLAN SEEM AIMED AT HELPING OLDLINE MANUFACTURERS OTHER PARTS OF THE PLAN ARE GEARED TOWARD ASSISTING HIGHTECH CONCERNS LARGELY LEFT OUT ARE SERVICE COMPANIES IN SOME EYES THIS RAISES ISSUES OF ECONOMIC POLICY THAT GO BEYOND SIMPLY WHO WON AND WHO LOST THE INCENTIVES ARE REALLY SKEWED SAID MORGAN STANLEY & CO ECONOMIST STEPHEN ROACH BECAUSE IT'S THE SERVICE COMPANIES THAT TEND TO BE MOST LABORINTENSIVE HE WORRIES THAT THE CLINTON PACKAGE WON'T GENERATE 500000 NEW JOBS THIS YEAR AS THE ADMINISTRATION IS PLEDGING THIS PLAN HAS A REAL ANTIJOBS BIAS MR ROACH ASSERTED YESTERDAY AT A HEARING OF THE CONGRESSIONAL JOINT ECONOMIC COMMITTEE SEN BYRON DORGAN VOICED A SIMILAR FEAR TO LAURA TYSON THE CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IF SOMEONE HAD AN OPPORTUNITY TO HIRE A MACHINE OR A PERSON TO DO AN EQUIVALENT JOB AT AN EQUIVALENT COST YOU WOULD HAVE TO TAKE THE MACHINE BECAUSE THE MACHINE COMES WITH A TAX BENEFIT THE NORTH DAKOTA DEMOCRAT SAID INDEED MANY OF THE TAX BREAKS PROPOSED BY MR CLINTON WILL HELP COMPANIES THAT POUR LOTS OF MONEY INTO THEIR DAILY OPERATIONS BE IT IN HEAVY MACHINERY OR MAJOR DEVELOPMENT PROJECTS AMONG THESE ARE THE RESTORATION OF A CREDIT FOR INVESTING IN NEW EQUIPMENT THE PERMANENT EXTENSION OF A CREDIT FOR CORPORATE RESEARCH AND THE MODIFICATION OF THE CORPORATE ALTERNATIVE MINIMUM TAX WHICH HAS HIT STEEL CHEMICAL PAPER AND AUTO COMPANIES ESPECIALLY HARD BUT SERVICE COMPANIES FOR THE MOST PART WOULDN'T BE GIVEN SUCH GOODIES AND IN A COUPLE OF CASES SUCH AS A PROVISION REDUCING THE DEDUCTIBLE PORTION OF BUSINESS MEALS AND ENTERTAINMENT EXPENSES THE SERVICE SECTOR FEELS AS IF IT'S BEING SINGLED OUT FOR PUNISHMENT TAX INCENTIVES SHOULD BE NEUTRAL WITH RESPECT TO HOW THEY AFFECT MANUFACTURING VERSUS SERVICE COMPANIES SAID MARGARET WIGGLESWORTH DIRECTOR OF THE COALITION OF SERVICE INDUSTRIES A TRADE GROUP REPRESENTING AMERICAN EXPRESS CO AMERICAN TELEPHONE & TELEGRAPH CO AND A DOZEN OTHER CORPORATE GIANTS AND WHEN IT COMES TO THE CLINTON PLAN SHE ADDED I THINK THERE ARE SOME AREAS WHERE THIS IS NOT TRUE DISTRIBUTORS OF PRODUCTS ARE GRIPING TOO THE CLINTON PLAN IS GOOD FOR THE MANUFACTURERS SAID GEORGE SYDNOR CHAIRMAN OF THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS BUT IT REALLY DOESN'T HELP US MR SYDNOR'S OWN BUSINESS JAMES MCGRAW INC MIGHT ACTUALLY PROFIT FROM THE PROPOSED TAX CHANGES BECAUSE THE RICHMOND VA COMPANY SUPPLIES MACHINE TOOLS AND OTHER INDUSTRIAL EQUIPMENT TO CAPITALINTENSIVE CONCERNS BUT THE VAST MAJORITY OF THE 40000 COMPANIES THAT HIS TRADE ORGANIZATION REPRESENTS MR SYDNOR SAID SELL TO RETAIL OUTLETS OR SERVICE ESTABLISHMENTS AND THEY'RE NOT GOING TO SEE ANY BENEFIT THE ADMINISTRATION'S FOCUS ON GIVING THE LARGEST TAX BREAKS TO CAPITALINTENSIVE COMPANIES ISN'T AN ACCIDENT SEVERAL ECONOMISTS INCLUDING LAWRENCE SUMMERS WHO IS SLATED TO BE PART OF THE CLINTON TREASURY HAVE DONE STUDIES SUGGESTING THAT ENCOURAGING INVESTMENT IN EQUIPMENT MAY BE THE MOST EFFECTIVE MEANS OF PROMOTING LONGTERM ECONOMIC GROWTH FOCUS ON HIGHER WAGES ADDITIONALLY THOSE JOBS THAT ARE CREATED BY CAPITALINTENSIVE COMPANIES TEND TO BE HIGHERWAGE JOBS SAID CHRIS VARVARES AN ECONOMIST AT LAURENCE H MEYER & ASSOCIATES A ST LOUIS CONSULTING FIRM THAT WAS ASKED BY THE CLINTON CAMPAIGN TO ANALYZE THESE ISSUES LABOR DEPARTMENT STATISTICS SHOW FOR INSTANCE THAT THE AVERAGE HOURLY PAY IN MANUFACTURING IS 1118 THE AVERAGE HOURLY WAGE AMONG FINANCE INSURANCE AND REAL ESTATE FIRMS BY CONTRAST IS 1040 AND AMONG RETAILERS IT'S ONLY 695 THE IMPACT OF THE CLINTON PLAN DOESN'T BREAK DOWN PERFECTLY BETWEEN THE SECTORS SOME SERVICE PROVIDERS SUCH AS AIRLINES COULD BENEFIT GREATLY FROM THE ALTERNATIVE MINIMUM TAX RELIEF AND THE INVESTMENT TAX CREDIT SIMILARLY THE INVESTMENT TAX CREDIT WOULD APPLY TO PURCHASES OF PERSONAL COMPUTERS WHICH SERVICE COMPANIES USE EXTENSIVELY AND MEASURES INTENDED TO ENCOURAGE STARTUP COMPANIES INCLUDING A BREAK FROM CAPITAL GAINS TAXES FOR SMALLBUSINESS INVESTORS COULD BE A BOON FOR MANUFACTURERS AND SERVICE COMPANIES AT THE SAME TIME MANY CAPITALINTENSIVE INDUSTRIES SAY THEY WOULD BE HURT DISPROPORTIONATELY BY THE ADMINISTRATION'S ENERGYTAX PROPOSALS BROADBASED ENERGY TAXES WOULD BE SERIOUSLY DAMAGING TO STEEL BECAUSE WE HAVE NO CHOICE IN USING CARBONBASED ENERGY FUELS THEY ARE ESSENTIAL INPUTS IN OUR PRODUCTION PROCESS MILTON DEANER PRESIDENT OF THE AMERICAN IRON AND STEEL INSTITUTE WROTE EARLIER THIS MONTH IN A LETTER TO PRESIDENT CLINTON AND SOME SIMPLY WANT MORE IT'S NICE THEY HAVE DONE SOMETHING BUT THIS PLAN IT ISN'T GOING TO HAVE A MAJOR IMPACT ON THE COST OF CAPITAL SAID MARGO THORNING CHIEF ECONOMIST AT THE AMERICAN COUNCIL FOR CAPITAL FORMATION WHICH INCLUDES MANY BIG MANUFACTURERS SUCH AS ALUMINUM CO OF AMERICA HEWLETTPACKARD CO AND FORD MOTOR CO FOR ONE THING MS THORNING SAID THE PROPOSED MODIFICATIONS TO THE ALTERNATIVE MINIMUM TAX WHICH ARE INTENDED TO ALLOW COMPANIES FORCED TO USE THAT TAX SYSTEM TO ACCELERATE THEIR DEPRECIATION IS REALLY A VERY SMALL AMOUNT OF RELIEF SECOND SHE NOTED THAT THE 7 INVESTMENT TAX CREDIT FOR LARGE COMPANIES APPLIES ONLY TO INVESTMENTS ABOVE A CERTAIN BASELINE AND THE CREDIT IS ONLY TEMPORARY BUSINESSES WITH GROSS REVENUE OF LESS THAN 5 MILLION A YEAR WOULD GET A PERMANENT FLAT CREDIT BUT COMPANIES THAT SMALL ACCOUNT FOR ONLY ABOUT 13 OF THE NATION'S TOTAL INVESTMENT IN PLANT AND EQUIPMENT ACCORDING TO MS THORNING 9302230033 930223 TECHNOLOGY SPECTRANETICS SYSTEM FOR LASER ANGIOPLASTY IS APPROVED FOR SALE COLORADO SPRINGS COLO SPECTRANETICS CORP SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO SELL ITS LASER ANGIOPLASTY SYSTEM FOR A WIDE NUMBER OF USES IN CLEARING BLOCKED CORONARY ARTERIES THE MAKER OF MEDICAL PRODUCTS IS ONE OF ONLY TWO COMPANIES WITH CLEARANCE TO MARKET SUCH A DEVICE LAST YEAR THE FDA APPROVED THE SALE OF A SIMILAR SYSTEM BY ADVANCED INTERVENTIONAL SYSTEMS INC IRVINE CALIF ALBEIT FOR A MORE LIMITED NUMBER OF USES SPECTRANETICS SAID ITS SYSTEM INVOLVES INSERTING A DISPOSABLE FIBEROPTIC CATHETER THROUGH A LEG ARTERY PASSING IT TO THE AFFECTED AREA NEAR THE HEART AND USING A NONTHERMAL LASER BEAM TO DISINTEGRATE THE BLOCKAGE INTO MICROSCOPIC PARTICLES THAT CAN BE CARRIED AWAY BY THE BODY'S NATURAL WASTE SYSTEM IN ADDITION TO TREATING LONG ARTERIAL BLOCKAGES GEORGE ROUNTREE SPECTRANETICS' CHIEF FINANCIAL OFFICER SAID THE SYSTEM HAS ALSO BEEN APPROVED FOR TREATING OTHER TYPES OF BLOCKAGES INCLUDING ARTERIES THAT HAVE NARROWED AGAIN AFTER HEART BYPASS SURGERY AND THOSE THAT HAVE RESISTED TREATMENT BY BALLOON ANGIOPLASTY A MORE COMMON TECHNIQUE WHILE DECLINING TO ESTIMATE POTENTIAL SALES OF ITS SYSTEMS WHICH COST ABOUT 250000 A BASIC UNIT THE COMPANY SAID THAT MORE THAN 1800 PATIENTS HAVE BEEN SUCCESSFULLY TREATED DURING CLINICAL TRIALS AT 32 US HOSPITALS AND THAT AN ADDITIONAL 2000 PATIENTS HAVE BEEN TREATED AT 27 UNITS INSTALLED IN EUROPE 9302230032 930223 HIGHTECH FIRM IMPROPERLY TAXED US JUDGE RULES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL IN A DECISION THAT COULD RELIEVE CASHRICH HIGHTECHNOLOGY COMPANIES OF A POTENTIAL TAX BURDEN A FEDERAL JUDGE IN MINNEAPOLIS RULED THAT THE INTERNAL REVENUE SERVICE IMPROPERLY TAXED NETWORK SYSTEMS CORP'S RETAINED EARNINGS FROM 1983 TO 1985 THE RULING BY US DISTRICT JUDGE JAMES ROSENBAUM FILED FRIDAY ORDERED THE AGENCY TO RETURN THE 11 MILLION IN ADDITIONAL TAXES AND PENALTIES PREVIOUSLY PAID BY THE MAKER OF DATA COMMUNICATIONS PRODUCTS AND TO PAY INTEREST AND COURT COSTS THE COURT FOUND THAT IN CASES WHERE CASH EXCEEDED ACCUMULATED EARNINGS AND PROFITS CAPITAL CONTRIBUTIONS MUST BE EXCLUDED FROM ACCUMULATED EARNINGS THE ISSUE CENTERED ON HOW MUCH OF NETWORK SYSTEMS' PROFIT COULD BE ACCUMULATED FOR FUTURE USE BEFORE THE COMPANY MUST START PAYING IT OUT AS DIVIDENDS TO SHAREHOLDERS THE IRS WAS SEEKING TO TAX WHAT IT CONSIDERED AN EXCESS ACCUMULATION OF RETAINED EARNINGS BY BASING ITS ASSESSMENT ON NET LIQUID ASSETS INSTEAD OF TAXABLE EARNINGS ANALYSTS SAID THE DECISION WILL HELP HIGHTECH COMPANIES MAINTAIN STRONG BALANCE SHEETS I THINK IF THE IRS HAD BEEN SUCCESSFUL IT WOULD HAVE BEEN VERY BAD NEWS FOR THE HIGHTECHNOLOGY INDUSTRY SAID DAVID ROTHSCHILD AN ANALYST WITH PIPER JAFFRAY IN MINNEAPOLIS LIKE MANY HIGHTECHNOLOGY COMPANIES THAT ARE BRACED FOR RAPID UPHEAVAL AND THAT NEED TO ACT QUICKLY ON EMERGING OPPORTUNITIES NETWORK SYSTEMS HAS MAINTAINED SIZABLE RETAINED EARNINGS FOR THE THREE YEARS IN QUESTION THE COMPANY'S ACCUMULATED CONTRIBUTIONS TO CAPITAL TOTALED 603 MILLION 61 MILLION AND 887 MILLION RESPECTIVELY WE GET A FAIR AMOUNT OF MONEY JUST FROM PRIVATE OFFERINGS AND THEY WERE TRYING TO TAX THAT SAID MALCOLM REID THE COMPANY'S VICE PRESIDENT GENERAL COUNSEL AND SECRETARY IT WOULD HAVE TURNED THE MARKET TOPSYTURVY IF YOU HAD TO CONSIDER THIS EVERY TIME YOU DID AN OFFERING JUDGE ROSENBAUM NOTED THAT THE COMPETITIVE HIGHTECHNOLOGY INDUSTRY IS LITTERED WITH THE BONES OF FAILED COMPANIES WIPED OUT BY INAPPROPRIATE CORPORATE STRATEGIES CORPORATE MANAGERS WHO ARE PRESUMABLY INTIMATELY FAMILIAR WITH THEIR OWN INDUSTRY AND OPERATIONS ARE IN A FAR BETTER POSITION TO DETERMINE THEIR CAPITAL NEEDS THAN ARE FEDERAL TAX EXAMINERS OR JUDGES THE RULING DECLARED NETWORK SYSTEMS PAID THE 11 MILLION ASSESSMENT WHILE IT PURSUED LEGAL ACTION BUT THE COMPANY WAS SO CONFIDENT OF VICTORY THAT IT DIDN'T ACCOUNT FOR THE PAYMENT IN ITS PROFIT STATEMENTS THUS MR REID SAID THE DECISION WON'T HAVE AN IMPACT ON EARNINGS THE IRS IS ALSO SEEKING 148 MILLION IN ADDITIONAL TAXES AND PENALTIES FOR THE YEARS 1986 THROUGH 1988 MR REID SAID THE AGENCY HAS PLACED THAT MATTER UNDER ADMINISTRATIVE REVIEW HE SAID THE COMPANY WOULD AGAIN PAY THE ADDITIONAL TAXES AND SEEK A REFUND THROUGH COURT ACTION 9302230031 930223 INTERNATIONAL BRIEF DAIMLERBENZ AG MERCEDESBENZ PLANS TO START ASSEMBLY OF BUSES IN MEXICO MERCEDESBENZ AG ACCELERATING ITS STRATEGY OF GLOBALIZATION PLANS TO BEGIN ASSEMBLING BUSES THIS YEAR AT A NEWLY ACQUIRED PLANT IN MEXICO THE ANNOUNCEMENT BY THE GERMAN AUTO MAKER COMES SHORTLY AFTER MERCEDES REVEALED IT WAS CONSIDERING BUILDING A NEW PASSENGERCAR ASSEMBLY PLANT IN THE US AND WAS NEGOTIATING TO ASSEMBLE CARS WITH SSANGYONG MOTOR CO ITS SOUTH KOREAN PARTNER THE FACTORY IS IN MONTERREY NEAR THE TEXAS BORDER MERCEDES A DIVISION OF DAIMLERBENZ AG SAID THE LOCATION WILL MAKE IT EASIER TO MARKET BUSES IN BOTH MEXICO AND THE US MERCEDES PLANS TO INVEST 80 MILLION MARKS 488 MILLION AND PRODUCE 3000 TO 4000 BUSES A YEAR MERCEDES OFFICIALS SPOKE AT A CELEBRATION TO MARK THE START OF PRODUCTION AT THE COMPANY'S PILOT PASSENGERCAR ASSEMBLY PLANT IN THE MEXICAN CITY OF SANTIAGO TIANGUISTENCO THE COMPANY'S FIRST PASSENGER CAR ASSEMBLY OPERATION ON THE NORTH AMERICAN CONTINENT MERCEDES HAS BEEN BUILDING COMMERCIAL VEHICLES FOR SEVERAL YEARS IN MEXICO 9302230030 930223 INTERNATIONAL TWO FIAT OFFICERS ARRESTED IN PROBE OF BRIBE SCHEME BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN TWO SENIOR FIAT SPA EXECUTIVES WERE ARRESTED IN ITALY'S CONTINUING CORRUPTION INVESTIGATION SENDING THE AUTO MAKER'S SHARES PLUMMETING AND THREATENING THE REPUTATION OF THE COUNTRY'S LARGEST PRIVATESECTOR CORPORATION ANALYSTS SAID HOWEVER THAT FIAT'S IMAGE ISN'T EXPECTED TO SUFFER IN THE LONG TERM FRANCESCO PAOLO MATTIOLI THE FIAT GROUP'S CHIEF FINANCIAL OFFICER AND ONE OF THE COMPANY'S MOST SENIOR EXECUTIVES WAS ARRESTED IN TURIN YESTERDAY MORNING FIAT CONFIRMED MR MATTIOLI 52 YEARS OLD WAS CHARGED WITH CORRUPTION AND VIOLATING LAWS ON POLITICALPARTY FINANCING THE CHARGES RELATE TO HIS POSITION AS CHAIRMAN OF COGEFARIMPRESIT SPA FIAT'S CONSTRUCTION UNIT WHICH ALLEGEDLY PAID A 18 BILLION LIRE 11 MILLION BRIBE TO POLITICAL PARTIES FOR CONTRACTS ON A MILAN SUBWAY LINE AND RAILROAD BRIDGE POLICE ALSO ARRESTED ON THE SAME CHARGES ANTONIO MOSCONI 49 CHIEF EXECUTIVE OFFICER OF FIAT INSURANCE GROUP TORO ASSICURAZIONI HE HAD BEEN DEPUTY CHAIRMAN OF COGEFARIMPRESIT FROM MAY 1989 TO JUNE 1991 AND CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR OF THE UNIT'S PARENT COMPANY FIAT IMPRESIT FROM OCTOBER 1985 TO DECEMBER 1992 MR MOSCONI WAS NAMED CEO OF TORO LAST NOVEMBER IN A STATEMENT FIAT EXPRESSED ITS FULL SOLIDARITY AND ABSOLUTE CONVICTION THAT THE TWO EXECUTIVES WHO HAVE ALWAYS PERFORMED THEIR JOBS WITH THE UTMOST RESPONSIBILITY AND PROPRIETY WILL DEMONSTRATE QUICKLY THEY HAVE NOTHING TO DO WITH ANY CIRCUMSTANCE ATTRIBUTED TO THEM ON THE MILAN STOCK MARKET FIAT SHARES PLUMMETED 5 IN HECTIC TRADING BEFORE RECOVERING TO 5350 LIRE OFF JUST 30 LIRE THE LIRA WHICH WAS BATTERED LAST WEEK AFTER TWO GOVERNMENT MINISTERS RESIGNED AMID THE SCANDAL WAS SLIGHTLY HIGHER AT 15680 IN LATE NEW YORK TRADING COMPARED WITH 15675 ON FRIDAY FINANCIAL ANALYSTS CALLED THE STOCK DROP IMPULSIVE AND SAID THE NEWS SHOULDN'T DAMAGE FIAT IN THE LONG TERM I THINK MOST PEOPLE UNDERSTAND THAT THE LID HAS BEEN BLOWN OFF THE POT IN ITALY SAID DAGMAR BOTTENBRUCH AUTOMOTIVE ANALYST FOR CREDIT SUISSE FIRST BOSTON IN MILAN IT'S PRETTY CLEAR THAT THE LARGEST CORPORATION IN ITALY WITH CLOSE LINKS TO POLITICAL POWERS COULDN'T HAVE BEEN THE ONLY ONE TO BE DOING THINGS DIFFERENTLY 9302230029 930223 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK MARILYN ALLEN WAS NAMED VICE PRESIDENT DIRECT SALES FOR THE PARAMOUNT PUBLISHING DISTRIBUTION SERVICES DIVISION OF PARAMOUNT PUBLISHING MS ALLEN WAS PREVIOUSLY VICE PRESIDENT DIRECTOR OF SALES FOR MASS MARKET AND PLUME TRADE PAPERBACKS AT PENGUIN USA NEW YORK PARAMOUNT PUBLISHING IS THE PUBLISHING OPERATION OF PARAMOUNT COMMUNICATIONS INC 9302230028 930223 CREDIT RATINGS RYKOFFSEXTON INC LOS ANGELES MOODY'S INVESTORS SERVICE INC LOWERED THE COMMERCIAL PAPER RATING OF THIS FOOD DISTRIBUTION AND RESTAURANT SUPPLY COMPANY TO NOT PRIME AND CONCURRENTLY WITHDREW THE RATING BECAUSE THE COMPANY NO LONGER IS ISSUING COMMERCIAL PAPER MOODY'S SAID THAT FOR THE INTERMEDIATE TERM IT EXPECTED THE RYKOFFSEXTON'S FINANCIAL FLEXIBILITY TO REMAIN STRAINED DUE TO DEPRESSED MARKET CONDITIONS AND THE HIGH COSTS OF A RECENT OPERATIONAL RESTRUCTURING STANDARD PACIFIC CORP COSTA MESA CALIF MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON THIS SINGLEFAMILY HOME BUILDER'S 1275 SUBORDINATED SINKING FUND DEBENTURES DUE 1999 AND ITS 1387 SUBORDINATED SINKING FUND DEBENTURES DUE 2004 TO SINGLEB1 FROM BA3 THE RATING ON THE COMPANY'S 200 MILLION SENIOR/SUBORDINATED SHELF REGISTRATION WAS LOWERED FROM BA1/BA3 TO BA2/SINGLEB1 THE RATING ACTION REFLECTS MOODY'S EXPECTATION OF CONTINUED WEAKNESS IN THE CALIFORNIA REAL ESTATE MARKET FOR THIS YEAR AND ONLY GRADUAL IMPROVEMENT NEXT YEAR 9302230027 930223 WHO'S NEWS ELJER INDUSTRIES INC ELJER INDUSTRIES INC DALLAS PAUL E PRICE 58 YEARS OLD WAS NAMED TO THE BOARD OF THIS MAKER OF PLUMBING PRODUCTS INCREASING THE BOARD'S SIZE TO SIX MR PRICE WHO RETIRED FROM QUAKER OATS CO IN 1991 SERVES ON SEVERAL OTHER BOARDS 9302230026 930223 WHO'S NEWS MATRIX PHARMACEUTICAL INC MATRIX PHARMACEUTICAL INC MENLO PARK CALIF JOHN E LYONS 40 YEARS OLD WAS NAMED TO THE BOARD OF THIS PHARMACEUTICAL COMPANY BRINGING THE NUMBER OF MEMBERS TO SEVEN MR LYONS IS A FORMER VICE CHAIRMAN OF MERCK & CO 9302230025 930223 MARKETING BRIEF NOTED WHO'S NEWS SPELLING ENTERTAINMENT GROUP INC NAMED MITCH HORWITS 37 SENIOR VICE PRESIDENT FOR ACQUISITIONS AND COPRODUCTIONS HE WAS VICE PRESIDENT FOR WORLDWIDE ACQUISITIONS AT TIME WARNER INC'S WARNER BROS TELEVISION UNIT SPELLING 48OWNED BY CINCINNATI FINANCIER CARL LINDNER'S AMERICAN FINANCIAL CORP IS A TELEVISION PRODUCER AND DISTRIBUTOR 9302230024 930223 PACIFIC GAS & ELECTRIC PLANS REORGANIZATION CUTTING STAFF BY 11 SAN FRANCISCO PACIFIC GAS & ELECTRIC CO UNVEILED A BROAD REORGANIZATION DESIGNED TO SAVE 200 MILLION ANNUALLY AFTER 1995 BY SLASHING ITS WORK FORCE BY 11 AND ELIMINATING MANY OPERATING DIVISIONS AND A BUSINESS UNIT INDUSTRY CHANGES ALONG WITH THE SLOWDOWN IN CALIFORNIA'S ECONOMY FORCED THESE MOVES SAID RICHARD A CLARKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE SAN FRANCISCOBASED UTILITY AFTER COSTS OF THE REORGANIZATION ARE PAID PG&E PLANS TO START PASSING SAVINGS ALONG TO CUSTOMERS IN THE FORM OF LOWER ENERGY PRICES PG&E IS NOW FACING GREATER COMPETITION IN BOTH ITS GAS AND ELECTRIC MARKETS THAN AT ANY TIME IN THE COMPANY'S 88YEAR HISTORY MR CLARKE SAID INTERSTATE PIPELINE COMPANIES ARE PICKING OFF SOME OF PG&E'S LARGEST GAS CUSTOMERS AND MORE COMPETITION IS EXPECTED FROM INDEPENDENT POWER PRODUCERS AFTER PASSAGE LAST YEAR OF A FEDERAL ENERGY BILL PG&E AIMS TO CUT ABOUT 3000 OF ITS 26600 JOBS OVER THREE YEARS HALF THE REDUCTIONS ARE PLANNED THIS YEAR WITH THE REMAINDER TO COME BY THE END OF 1995 SIX OF THE UTILITY'S 38 OFFICERS AND 50 OF MORE THAN 150 MANAGERS AND DEPARTMENT HEADS HAVE OPTED FOR EARLY RETIREMENT PG&E HOPES THAT MOST OF THE JOB REDUCTIONS CAN BE ACHIEVED THROUGH VOLUNTARY RETIREMENT AND SEVERANCE PROGRAMS BUT SOME TERMINATIONS ARE LIKELY A SPOKESMAN SAID THE PROJECTED COST OF THE SEVERANCE PROGRAM IS 135 MILLION OVER THREE YEARS AND WILL BE PAID BY THE SAVINGS ON EMPLOYEE SALARIES AND RELATED EXPENSES THE SPOKESMAN SAID THE PROGRAM ISN'T EXPECTED TO RESULT IN A CHARGE AGAINST EARNINGS BUT SAVINGS WILL BE MONITORED IN A SPECIAL ACCOUNT TO BE REVIEWED BY THE CALIFORNIA PUBLIC UTILITIES COMMISSION THE ENGINEERING AND CONSTRUCTION BUSINESS UNIT WILL BE ELIMINATED AND ITS ACTIVITIES WILL BE SPREAD AMONG THE REMAINING FOUR UNITS 9302230023 930223 LA PETITE ACADEMY AGREES TO PROPOSAL TO TAKE IT PRIVATE KANSAS CITY MO LA PETITE ACADEMY INC'S BOARD AGREED TO A PLAN BY WHICH MANAGEMENT AND VESTAR CAPITAL PARTNERS INC WOULD TAKE THE COMPANY PRIVATE FOR ABOUT 170 MILLION VESTAR CAPITAL IS A NEW YORK INVESTMENT CONCERN THAT INVESTS IN MANAGEMENTLED BUYOUTS LA PETITE ACADEMY WHICH OPERATES CHILDCARE CENTERS DISCLOSED LATE LAST YEAR THAT CERTAIN MEMBERS OF MANAGEMENT AND AN UNNAMED INVESTMENT FIRM WERE IN TALKS WITH A COMMITTEE OF OUTSIDE DIRECTORS OVER A BUYOUT PLAN THAT WOULD GIVE PUBLIC STOCKHOLDERS 10 A SHARE UNDER THE BUYOUT AGREEMENT ANNOUNCED YESTERDAY LA PETITE SHARES IN THE HANDS OF THE PUBLIC WOULD BE PURCHASED FOR 10 APIECE THE MANAGEMENT BUYOUT GROUP DOESN'T INCLUDE CHIEF EXECUTIVE OFFICER JACK L BROZMAN AND THE BUYOUT PACT TREATS DIFFERENTLY THE NEARLY 41 MILLION SHARES HELD BY THE ESTATE OF HIS LATE FATHER FORMER CHAIRMAN ROBERT F BROZMAN IN A RELATED TRANSACTION THE ROBERT BROZMAN ESTATE HAS GRANTED THE BUYOUT GROUP AN OPTION TO ACQUIRE 16 MILLION SHARES AT 850 WITH THE REMAINING 25 MILLION TO BE REDEEMED BY THE COMPANY AT AN INITIAL 6 A SHARE THE SHARES REDEEMED AT 6 COULD SUBSEQUENTLY GARNER UP TO AN ADDITIONAL 250 APIECE UNDER CERTAIN CIRCUMSTANCES THE COMPANY SAID THE TRANSACTIONS INVOLVING THE ESTATE'S STAKE ARE SUBJECT TO APPROVAL OF THE PROBATE COURT HANDLING ROBERT BROZMAN'S ESTATE THE BUYOUT ITSELF REQUIRES APPROVAL FROM SHAREHOLDERS OTHER THAN THE ESTATE OR PETITE MANAGEMENT IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY PETITE SHARES CLOSED UP 50 CENTS AT 9375 THROUGH THE FIRST NINE MONTHS OF 1992 LA PETITE ACADEMY HAD NET INCOME OF 74 MILLION OR 47 CENTS A SHARE ON REVENUE OF 1835 MILLION 9302230022 930223 FUQUA PLANS FOCUS ON SPORTS LEISURE 4THPERIOD NET POSTED ATLANTA FUQUA INDUSTRIES INC SAID IT PLANS TO FOCUS ON THE SPORTS AND LEISURE INDUSTRY AND IS CONSIDERING HIRING MERRILL LYNCH & CO TO HELP INCREASE THE VALUE OF THE COMPANY FUQUA ALSO REPORTED FOURTHQUARTER EARNINGS OF 5 MILLION OR 30 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 268 MILLION OR 162 A SHARE THE YEAREARLIER QUARTER INCLUDED CHARGES OF 104 MILLION FOR RELOCATING CERTAIN OPERATIONS AND FOR RESERVES FOR BAD DEBTS AND INVESTMENT LOSSES FUQUA OFFICIALS WOULDN'T SAY IF ITS NEW STRATEGIC PLAN MEANS THE COMPANY INTENDS TO SELL ITS NEWLY PROFITABLE SNAPPER POWER EQUIPMENT DIVISION WHICH MAKES LAWN EQUIPMENT AS REPORTED LAST MONTH FUQUA HAD BEEN IN TALKS WITH A POSSIBLE BUYER BUT THE COMPANY SAID AT THE TIME THAT CHANCES OF COMPLETING A DEAL SEEMED SLIM CHARLES R SCOTT FUQUA'S CHIEF EXECUTIVE SAID IN A LETTER TO SHAREHOLDERS THAT FUQUA WOULD WORK TO IMPROVE RESULTS OF ITS EXISTING LEISURE BUSINESSES WHICH INCLUDE SPORTS EQUIPMENT LICENSING PHOTOFINISHING AND OUTDOOR PRODUCTS AND WOULD IDENTIFY SUITABLE NEW ACQUISITIONS THE COMPANY SAID IT IS INTERESTED IN SPORTS SUCH AS WALKING CAMPING BOWLING AND GOLFING THE COMPANY SAID THE SNAPPER UNIT HAD OPERATING INCOME OF 18 MILLION FOR THE FULL YEAR COMPARED WITH AN OPERATING LOSS OF 51 MILLION IN 1991 FOR THE YEAR FUQUA REPORTED A PROFIT OF 116 MILLION OR 70 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 508 MILLION OR 308 A SHARE SALES ROSE 24 TO 115 BILLION FROM 9246 MILLION THE YEAREARLIER RESULTS INCLUDED 59 MILLION IN RESTRUCTURING CHARGES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FUQUA WAS QUOTED AT 1175 DOWN 375 CENTS 9302230021 930223 PHARMOR IS CLOSING 31 STORES IN 17 STATES BRINGING TOTAL TO 86 YOUNGSTOWN OHIO PHARMOR INC SAID IT WILL CLOSE 31 STORES IN 17 STATES BRINGING TO 86 THE NUMBER OF STORES CLOSED SINCE THE DEEPDISCOUNT DRUG STORE CHAIN FILED FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION IN AUGUST PHARMOR SAID IT DECIDED TO CLOSE THE STORES AFTER OBTAINING NEW INFORMATION INDICATING THAT IT EXPERIENCED A GREATERTHANEXPECTED LOSS OF 200 MILLION IN THE YEAR ENDED JUNE 30 NOW FOR THE FIRST TIME WE ACTUALLY KNOW WHICH STORES ARE PROFITABLE AND WHICH ARE UNPROFITABLE A PHARMOR SPOKESMAN SAID PHARMOR HAS ALLEGED IT WAS THE VICTIM OF A FRAUDANDEMBEZZLEMENT SCHEME BY THREE FORMER EXECUTIVES PHARMOR HAS INCREASED ITS ESTIMATE OF TOTAL LOSSES RESULTING FROM THE ALLEGED SCHEME TO 499 MILLION FROM 350 MILLION SEPARATELY FOXMEYER INC PHARMOR'S LARGEST TRADE CREDITOR FILED SUIT AGAINST COOPERS & LYBRAND PHARMOR'S FORMER ACCOUNTANT THE SUIT FILED IN STATE COURT IN DALLAS AND SEEKING UNSPECIFIED ACTUAL AND PUNITIVE DAMAGES ALLEGES COOPERS & LYBRAND FAILED TO USE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN AUDITING PHARMOR'S FINANCIAL STATEMENTS A SPOKESMAN FOR COOPERS & LYBRAND WHICH IS BASED IN NEW YORK SAID HE DOUBTS FOXMEYER OR ANY OTHER TRADE CREDITOR RELIED ON PHARMOR'S AUDIT REPORTS IN DECIDING WHETHER TO DO BUSINESS WITH THE DRUGSTORE CHAIN MEANWHILE A PANEL OF FEDERAL JUDGES THE JUDICIAL PANEL ON MULTIDISTRICT LITIGATION AGREED TO CONSOLIDATE 11 LAWSUITS INVOLVING PHARMOR INTO A SINGLE JURISDICTION THE US DISTRICT COURT IN PITTSBURGH IN ORDER TO COORDINATE PRETRIAL PROCEEDINGS AMONG THE LAWSUITS ARE INVESTOR ACTIONS AGAINST THE CLOSELY HELD DRUG STORE CHAIN'S OFFICERS AND DIRECTORS 9302230020 930223 BUSINESS BRIEF GOODYEAR RAISES BID ON GOODYEAR CANADA OFFERING 148 MILLION AKRON OHIO GOODYEAR TIRE & RUBBER CO PROPOSED PAYING 148 MILLION OR 5151 A SHARE FOR THE 11 OF GOODYEAR CANADA INC IT DOESN'T OWN EIGHT MONTHS AFTER SHAREHOLDERS REJECTED A LOWER OFFER IRWIN MICHAEL WHO LED THE PROTEST AGAINST GOODYEAR'S EARLIER OFFER OF 4047 A SHARE CALLED THE NEW PROPOSAL FAIR AND SAID HIS FIRM IA MICHAEL INVESTMENT COUNSEL LTD IN TORONTO WILL TENDER THE SHARES IT CONTROLS THE FIRM HOLDS ABOUT 1625 OF THE 288000 SHARES OUTSTANDING MR MICHAEL SAID HE IS ACCEPTING GOODYEAR'S NEW BUYOUT OFFER BECAUSE THERE IS A TIME VALUE OF MONEY WHILE HE SEES POTENTIAL FOR GOODYEAR CANADA'S STOCK TO CLIMB OVER THE NEXT 18 MONTHS HE DOESN'T WANT TO WAIT FOR THE PAYOFF MR MICHAEL HAS PRESSED THE MINORITY SHAREHOLDERS' CASE WITH GOODYEAR FOR ABOUT A YEAR BUT DECLINED TO SAY WHAT ROLE HE PLAYED IN NEGOTIATING THE NEW PRICE SHAREHOLDERS ARE EXPECTED TO VOTE ON THE OFFER IN MAY IN CANADIAN DOLLARS GOODYEAR'S OFFER IS 65 A SHARE SEPARATELY GOODYEAR SAID IT AGREED TO SELL RENEER FILMS CORP AUBURN PA TO GENCORP INC TERMS WEREN'T DISCLOSED BUT DAVID M GARRITY AN ANALYST WITH MCDONALD & CO SECURITIES INC SAID RENEER COULD FETCH ABOUT 30 MILLION RENEER HAD 40 MILLION IN SALES LAST YEAR THE SALE OF RENEER IS PART OF GOODYEAR'S STRATEGY TO EXIT FROM NONCORE BUSINESSES AND USE THE PROCEEDS TO PAY DOWN DEBT FOR GENCORP WHICH MAKES AEROSPACE AUTOMOTIVE AND POLYMER PRODUCTS RENEER OFFERS WHAT THE COMPANY CALLED AN EXCELLENT STRATEGIC FIT THE FAIRLAWN OHIO COMPANY ALREADY HAS A VINYL FILM BUSINESS RENEER MAKES VINYL WOODGRAIN LAMINATES FOR FURNITURE AND CONSUMER ELECTRONICS AND CLEAR PLASTIC FILMS 9302230019 930223 BUSINESS BRIEF TELUS CORP AGT UNIT SEEKS TO INCREASE TELEPHONE RATES IN ALBERTA TELUS CORP EDMONTON ALBERTA SAID ITS AGT LTD TELEPHONE SERVICE UNIT IS ASKING CANADIAN REGULATORS TO PERMIT A 9 TO 15 INCREASE IN THE LOCAL TELEPHONE RATES CHARGED TO CUSTOMERS IN ITS ALBERTA SERVICE AREA AGT SAID THE INCREASES IF APPROVED WOULD GENERATE ABOUT 718 MILLION CANADIAN DOLLARS US57 MILLION IN ADDITIONAL REVENUE IN 1993 IT SAID UNDER THE PROPOSAL RESIDENTIAL CUSTOMERS WOULD PAY ABOUT 9 MORE FOR THEIR LOCAL PHONE SERVICE WHILE BUSINESS SUBSCRIBERS WOULD SEE A 15 INCREASE THE NEW RATES IF APPROVED WOULD TAKE EFFECT MAY 1 THE COMPANY SAID ITS LOCAL RATES HAVE RISEN ONLY ONCE SINCE 1984 WHILE LONG DISTANCE RATES HAVE DECREASED 40 IN THE LAST FIVE YEARS IT SAID THE COST OF PROVIDING LOCAL SERVICE IS STILL HIGHER THAN THE REVENUE IT RECEIVES FROM THIS SERVICE AGT HAS A MONOPOLY ON LOCAL TELEPHONE SERVICE IN THE PROVINCE OF ALBERTA 9302230018 930223 WHO'S NEWS CEM CORP CEM CORP CHARLOTTE NC RICHARD N DECKER 44 YEARS OLD WAS NAMED TREASURER AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF MICROWAVE TEST EQUIPMENT SUCCEEDING C PHILLIP BROWN 37 WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID 9302230017 930223 OTC FOCUS SYNERGEN PLUNGES 68 OTHER BIOTECHS ARE WEAK AS NASDAQ INDEX DROPS 17 BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THERE'S NO SUCH THING AS A SAFE BIOTECHNOLOGY STOCK THAT'S WHAT TRADERS WERE SAYING AFTER SYNERGEN FELL 68 YESTERDAY ON NEWS OF DISAPPOINTING TEST RESULTS FOR ITS DRUG ANTRIL USED TO TREAT SEPSIS A BLOOD INFECTION SYNERGEN OFTEN CALLED ONE OF THE SAFEST BIOTECH INVESTMENTS PLUNGED 28 5/8 TO 13 1/2 INVESTORS BAILED OUT OF THE STOCK ON 21 MILLION SHARES OR 37 TIMES TIMES NORMAL DAILY VOLUME THE STOCK NOW STANDS AT ABOUT ONEFIFTH OF ITS 52WEEK HIGH OF 66 1/4 IT WAS THE SAFEST AMONG THE BIOTECHS BECAUSE IT WAS VIEWED AS HAVING THE NEXT BIGGEST LAUNCH ANTRIL SAID MAUREEN MCGANN A BIOTECH ANALYST WITH MERRILL LYNCH BUT THERE IS RISK IN EVERY BIOTECH COMPANY MERRILL LYNCH CUT ITS SHORTTERM RATING OF SYNERGEN TO BELOW AVERAGE FROM ABOVE AVERAGE SYNERGEN'S BAD NEWS PUMMELED THE ALREADY BEATEN BIOTECH STOCKS AND SANK THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX TUMBLED 1119 OR 17 TO 65242 NEARLY 8 BELOW ITS ALLTIME HIGH OF 70885 REACHED FEB 4 DECLINING ISSUES OUTNUMBERED ADVANCERS 1687 TO 1003 ON TOTAL VOLUME OF 2774 MILLION SHARES UP FROM FRIDAY'S 2433 MILLION BIOTECH STOCKS FELL ALMOST ACROSSTHEBOARD AMGEN DROPPED 3 1/2 TO 41 1/2 BIOGEN SLIPPED 1 3/8 TO 26 7/8 CHIRON TOPPLED 5 1/8 TO 45 5/8 AND GENZYME FELL 3 1/4 TO 29 1/4 IT WAS PRETTY MUCH A BLOOD BATH NOBODY IS STEPPING UP TO THE PLATE TO BUY ANY OF THESE STOCKS SAID JERRY NEWMAN AN INSTITUTIONAL EQUITY TRADER WITH COWEN & CO IN SAN FRANCISCO THERE MIGHT BE SOME NIBBLING IN 24 OR 48 HOURS BUT RIGHT NOW IT'S A TAKE ME OUT' MENTALITY INVESTORS WERE PRONE TO PANIC BECAUSE THEY RECENTLY WATCHED TWO OTHER BIOTECH STOCKS GET HAMMERED AFTER REPORTING DISAPPOINTING EFFORTS TO CREATE A SEPSIS DRUG THOSE STOCKS WERE CENTOCOR WHICH YESTERDAY EASED 1/2 TO 6 1/2 AND XOMA DOWN 3/8 TO 7 3/4 BOTH ARE TRADING WELL BELOW THEIR 52WEEK HIGHS OF 40 AND 24 1/2 RESPECTIVELY DAVID WEBBER AN ANALYST AT ALEX BROWN & SONS CUT HIS RATING ON SYNERGEN TO NEUTRAL FROM STRONG BUY HE SAID THERE IS A GOOD CHANCE THAT ANTRIL WILL NEED TO HAVE ANOTHER TRIAL WHICH WILL DELAY THE PRODUCT'S DELIVERY MR WEBBER SAID SYNERGEN HAD BEEN EXPECTED TO SUBMIT AN APPLICATION TO THE FOOD AND DRUG ADMINISTRATION THIS SUMMER WITH A PROJECTED DECEMBER 1994 ARRIVAL OF THE DRUG ON THE MARKET HE SAID THESE PROJECTIONS WILL HAVE TO BE PUSHED BACK THE COMPANY SAID IT WAS DISAPPOINTED THAT THE RESULTS OF ITS PHASE III CLINICAL TRIAL OF ANTRIL DID NOT MATCH THOSE OF THE EARLIER TRIAL NEVERTHELESS THE COMPANY SAID THAT ABOUT ONEHALF TO TWOTHIRDS OF THE MOST SEVERELY ILL PATIENTS IN THE TEST SHOWED A MORTALITY REDUCTION ON THE ORDER OF 20 TO 25 COMPARED WITH THE MOST SEVERELY ILL PEOPLE WHO RECEIVED PLACEBOS SYNERGEN OFFICIALS SAID THEY STILL PLAN TO APPLY IN THE THIRD QUARTER FOR APPROVAL TO MARKET THE DRUG IN THE US CANADA AND EUROPE NOT EVERY SYNERGEN INVESTOR JUMPED SHIP LESIA KORYTKO AN OFFICIAL OF INVESCO TRUST CO SAID OF THE DENVERBASED FAMILY OF FUNDS WE'RE STAYING IN WE'RE DEVASTATED AT THE NEWS BUT IT COULD BE WORSE AT THESE PRICES WE ARE BUYING SOME MORE SHE SAID THAT OVERALL SYNERGEN IS THE CLOSEST TO PRODUCING AN EFFECTIVE SEPSIS DRUG AND ITS RESULTS AMONG THE SICKEST PATIENTS ARE PROMISING INVESCO WAS SYNERGEN'S THIRDLARGEST SHAREHOLDER AS OF LAST WEEK MANY MEDICAL STOCKS CONTINUED TO BE HIT BY HEAVY SELLING AS INVESTORS WORRY ABOUT POSSIBLE COSTCONTAINMENT POLICIES OF PRESIDENT CLINTON US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION FELL 3 3/4 TO 39 1/2 AND COSTAR A LABORATORY PRODUCTS COMPANY TUMBLED 4 1/2 TO 17 1/2 TECHNOLOGY STOCKS ALSO FELL MICROSOFT SLIPPED 3 TO 76 3/4 INTEL EASED 7/8 TO 114 1/2 AND ADOBE SYSTEMS SLID 1 5/8 TO 42 1/8 MTC ELECTRONIC TECHNOLOGIES DROPPED 3 5/8 TO 6 7/8 DAIWA SECURITIES THE UNDERWRITER OF MTC'S PROPOSED OFFERING OF FIVE MILLION SHARES AND 50 MILLION IN DEBENTURES ORIGINALLY PLANNED FOR THIS PAST DECEMBER SAID THE OFFERING IS STILL AT LEAST A MONTH AWAY SHARES OF THE BRITISH COLUMBIA COMPANY SOARED AS HIGH AS 30 LAST YEAR AS INVESTORS BECAME ENTHUSIASTIC ABOUT ITS POTENTIAL AS A CHINA PLAY IN DECEMBER WHEN THE STOCK WAS AT 2725 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN SAID ANYONE CONSIDERING BUYING THE STOCK AT TODAY'S LEVELS WILL DO WELL TO PONDER THE QUESTION OF WHETHER MTC IS RIGHT IN ENVISIONING ITSELF AS THE MAJOR PLAYER IN THE CHINESE CELLULAR MARKET ONE THAT WILL OUTWIT POTENTIAL RIVALS SUCH AS CABLE & WIRELESS OF BRITAIN AND MOTOROLA INC ENCORE WIRE CORP SLIPPED 2 TO 8 THE MCKINNEY TEXAS COMPANY SAID IT HAS LOST ITS LARGEST CUSTOMER WHICH ACCOUNTED FOR NEARLY 27 OF FISCAL 1992 SALES THE COMPANY SAID WESTINGHOUSE ELECTRIC SUPPLY CO HAS DECIDED TO CONSOLIDATE ITS VENDOR BASE UPON COMPLETION OF ALL CURRENT PURCHASE ORDERS AND INVENTORIES ENCORE MAKES COPPER ELECTRICAL WIRE FOR INTERIOR WIRING THE COMPANY SAID IT HAS ALREADY HAD DISCUSSIONS WITH EXISTING AND PROSPECTIVE CUSTOMERS AND IS CONFIDENT OF ITS ABILITY TO REPLACE LOST SALES HEALTHINFUSION SLID 1 TO 7 1/2 RAYMOND JAMES FINANCIAL INC DOWNGRADED THE HOME INFUSION THERAPY COMPANY BASED IN MIAMI TO HOLD FROM BUY DANKA BUSINESS SYSTEMS PLC CLIMBED 2 1/8 TO 37 5/8 PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON INITIATED COVERAGE OF DANKA'S AMERICAN DEPOSITARY RECEIPTS WITH A BUY RATING THE LONDONBASED COMPANY DISTRIBUTES COPIERS FACSIMILE GEAR AND OTHER BUSINESS EQUIPMENT AND SUPPLIES THROUGH MORE THAN 138 OUTLETS PRIMARILY IN THE SOUTHEASTERN US 9302230016 930223 WHO'S NEWS METCOIL SYSTEMS CORP METCOIL SYSTEMS CORP CEDAR RAPIDS IOWA JOHN F LOGAN 57 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ADVANCE ASSEMBLY AUTOMATION INC WAS NAMED A DIRECTOR OF THIS SHEETMETAL PROCESSOR TO FILL THE UNEXPIRED TERM OF GRAEME J MARSH 58 A NEW ZEALAND BUSINESSMAN WHO RESIGNED 9302230015 930223 ANDERSEN CONSULTING REPORTS 16 INCREASE IN REVENUE FOR 1992 CHICAGO ANDERSEN CONSULTING A MAJOR CONSULTING AND COMPUTERSERVICES CONCERN SAID STRONG OVERSEAS GROWTH AND HOT AREAS SUCH AS CLIENTSERVER TECHNOLOGY FUELED A 16 JUMP IN 1992 REVENUE THE REPORT WAS ANDERSEN'S FIRST ON A CALENDARYEAR BASIS THE CONSULTING FIRM AS PART OF ITS EFFORT TO CREATE ITS OWN IDENTITY HAS EFFECTIVELY DECOUPLED ITS RESULTS FROM THOSE OF ITS SISTER FIRM ACCOUNTING GIANT ARTHUR ANDERSEN NEXT MONTH ANDERSEN CONSULTING ALSO WILL ISSUE ITS FIRST SEPARATE ANNUAL REPORT BOTH FIRMS ARE UNITS OF SWISS HOLDING COMPANY ARTHUR ANDERSEN & CO PREVIOUSLY THE PARENT REPORTED JOINT RESULTS FOR A YEAR ENDING AUG 31 AN ANDERSEN CONSULTING SPOKESMAN SAID THIS PRACTICE WILL CONTINUE OVERALL ANDERSEN CONSULTING'S REVENUE ADVANCED TO 272 BILION FROM 234 BILLION IN 1991 NONUS REVENUES WERE 147 BILLION WHILE US OPERATIONS ROSE 12 TO 125 BILLION FOREIGN GROWTH WAS STRONGER AT 20 ANDERSEN SAID 1992 GROWTH WAS HELPED BY VIBRANT MARKETS IN CLIENTSERVER TECHNOLOGY A MORE DECENTRALIZED ALTERNATIVE TO TRADITIONAL MAINFRAME COMPUTING AND REENGINEERING OR FUNDAMENTAL REORDERING OF BUSINESS PROCESSES MORE THAN 1 BILLION OF 1992 REVENUE CAME FROM THE CLIENTSERVER AREA ANDERSEN SAID UP FROM ONLY 370 MILLION IN 1991 IT EXPECTS CLIENTSERVER REVENUES TO BE ABOUT 19 BILLION IN 1993 REENGINEERING CONTRIBUTED ABOUT 700 MILLION OF 1992 REVENUE ANDERSEN SAID ITS STRONGEST DEMAND WAS IN AREAS SUCH AS UTILITIES AND TELECOMMUNICATIONS BOTH OF WHICH REPORTED 41 GROWTH DRIVEN BY DEREGULATION IN EUROPE AND INCREASED COMPETITION IN THE US ANDERSEN EMPLOYS MORE THAN 26000 PERSONS IN 151 OFFICES AND 47 COUNTRIES 9302230014 930223 RELIANCE SAID TO SEEK ACCORD ON SEC CLAIM BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RELIANCE GROUP HOLDINGS INC IS HOLDING TALKS WITH THE SECURITIES AND EXCHANGE COMMISSION TO SETTLE POSSIBLE SEC CIVIL CHARGES INVOLVING RELIANCE BOND TRADES WITH DREXEL BURNHAM LAMBERT INC'S JUNK BOND DEPARTMENT ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE MATTER THE SEC HAS ALLEGED IN COMMUNICATIONS WITH DEFENSE LAWYERS THAT RELIANCE GROUP'S RELIANCE INSURANCE CO UNIT INITIATED A SERIES OF ILLEGAL TRADES IN 1986 THAT WERE INTENDED TO HELP RELIANCE GROUP WHICH IS CONTROLLED BY NEW YORK FINANCIER SAUL STEINBERG REALIZE GAINS IN ITS SECURITIES PORTFOLIO SEC INVESTIGATORS HAVE FOUND EVIDENCE THAT RELIANCE ARRANGED TO SELL SECURITIES TO DREXEL AND THEN REPURCHASE THEM LATER THE INDIVIDUALS FAMILIAR WITH THE MATTER SAID ANY LOSSES ON THE TRADES WERE TO BE MADE UP IN FUTURE TRADES SO THAT THERE WOULD BE NO RISK FOR RLIANCE THE INDIVIDUALS SAID SUCH A PRACTICE IS KNOWN AS PARKING IN THIS CASE THE SEC IS UNDERSTOOD TO BELIEVE THAT THE AIM OF THE TRADES WAS TO ENABLE RELIANCE TO RECOGNIZE GAINS IN ITS PORTFOLIO IN ANTICIPATION OF RELIANCE GROUP'S INITIAL PUBLIC STOCK OFFERING IN SEPTEMBER 1986 AND AN INITIAL OFFERING OF RELIANCE JUNK BONDS IN NOVEMBER OF THAT YEAR DREXEL UNDERWROTE BOTH OFFERINGS FOR RELIANCE GROUP AN INSURANCE AND FINANCIALSERVICES COMPANY A RELIANCE GROUP SPOKESMAN DECLINED COMMENT RELIANCE HAS TOLD THE SEC THAT THE TRADES WEREN'T PARKING TRANSACTIONS BUT INSTEAD INVOLVED A DIFFERENCE OF INTERPRETATION WITH THE SEC OVER ACCOUNTING RULES ON HOW TO RECOGNIZE GAINS ON BOND SALES THE RELIANCE PROBE STEMS FROM THE GOVERNMENT'S MASSIVE INVESTIGATION OF DREXEL AND MANY OF ITS CUSTOMERS THAT BEGAN IN 1986 HOWEVER INDIVIDUALS WITH KNOWLEDGE OF THE SEC'S INVESTIGATION SAY THAT NEITHER MR STEINBERG RELIANCE GROUP'S CHAIRMAN NOR MICHAEL MILKEN THE FORMER HEAD OF DREXEL'S JUNK DEPARTMENT HAVE BEEN IMPLICATED IN CONNECTION WITH THE ALLEGED PARKING TRANSACTIONS INDIVIDUALS FAMILIAR WITH THE MATTER SAID RELIANCE IS CURRENTLY NEGOTIATING TO SETTLE THE MATTER BY SIGNING AN ORDER THAT REQUIRES IT TO CEASE AND DESIST FROM SUCH TRADES IN THE FUTURE WHILE SECURITIES PARKING HAS BEEN ALLEGED IN NUMEROUS OTHER INSTANCES RELATING TO DREXEL CLIENTS THE SEC HAS REFRAINED FROM BRINGING CIVIL CHARGES IN PARKING CASES IT IS UNCLEAR WHY THE SEC IS CONSIDERING PURSUING THE PARKING CASE AGAINST RELIANCE AN SEC SPOKESMAN DECLINED TO COMMENT INDIVIDUALS FAMILIAR WITH THE MATTER SAY THE TRADES WERE THE RESULT OF AN AGREEMENT BETWEEN JOHN PANKRATZ A VICE PRESIDENT OF FIXED INCOME AT RELIANCE INSURANCE AND WILLIAM TOBEY A FORMER DREXEL SALESMAN MR TOBEY WHO IS UNDERSTOOD TO BE COOPERATING WITH THE SEC INVESTIGATION COULDN'T BE REACHED FOR COMMENT RELIANCE SAID THAT MR PANKRANTZ DIDN'T HAVE ANY COMMENT MR MILKEN HAS DENIED KNOWING ANYTHING ABOUT THE TRADES DURING HUNDREDS OF HOURS OF COOPERATION WITH THE GOVERNMENT PEOPLE FAMILIAR WITH THE MATTER SAID THE ALLEGEDLY ILLEGAL TRADES OCCURRED DURING THE SECOND AND THIRD QUARTERS OF 1986 DURING THE SECOND QUARTER THE SEC FOUND THAT RELIANCE TURNED A LOSS INTO A SUBSTANTIAL GAIN AS A RESULT OF THE TRADES THE THIRD QUARTER WAS LESS PROFITABLE BECAUSE THE MARKET WAS MORE VOLATILE AND DREXEL APPARENTLY DECLINED TO PURSUE ADDITIONAL COMPENSATORY TRADES AFTER IT LEARNED THAT FORMER ARBITRAGER IVAN BOESKY WAS COOPERATING IN THE GOVERNMENT'S INVESTIGATION OF DREXEL DREXEL LATER PLEADED GUILTY TO CRIMINAL SECURITIESLAW VIOLATIONS AND COLLAPSED IN 1990 MR MILKEN PLEADED GUILTY TO CRIMINAL CHARGES AND IS COMPLETING A FEDERAL PRISON SENTENCE 9302230013 930223 REVIEW & OUTLOOK EDITORIAL THE VACCINE SCAPEGOAT CYNICS ARGUE THAT THE REASON BILL AND HILLARY CLINTON PISTOLWHIPPED THE DRUG INDUSTRY OVER VACCINE PRICES JUST DAYS BEFORE THE STATE OF THE UNION WAS TO INTIMIDATE THE REST OF US INDUSTRY INTO SILENCE OVER THE TAXLADEN ECONOMIC PROPOSAL AND THE REASON CYNICISM LIKE THIS IS COMING BACK INTO VOGUE IS THAT THE CLINTONS AS ELSEWHERE HAD SO TRANSPARENTLY DEMAGOGUED THE VACCINE ISSUE LEAVING HUGE AND OBVIOUS PARTS OF THE IMMUNIZATION PROBLEM UNMENTIONED EXCORIATING COMPANIES THAT PROFIT AT THE EXPENSE OF OUR CHILDREN PRESIDENT CLINTON CALLED VACCINE PRICES SHOCKING AS USUAL GEORGE STEPHANOPOULOS THEN RAN FORWARD TO KICK THE DRUG COMPANIES AS THE ENTRENCHED SPECIAL INTERESTS WE'RE TRYING TO FIGHT A MORE HONEST EXPLANATION OF THE PROBLEM AT LEAST WOULD HAVE MENTIONED BOTH THE FAMOUS LIABILITY SUITS THAT PUSHED UP THE COST OF VACCINES AND THE GOVERNMENT BUREAUCRACY'S OWN FAILED EFFORTS TO IMMUNIZE THE POOR THE FEAR OF LIABILITY IS RESPONSIBLE FOR MUCH OF THE INCREASED COST OF VACCINES OVER THE PAST DECADE TEN YEARS AGO THERE WERE AT LEAST A DOZEN VACCINE MANUFACTURERS IN THE US TODAY THERE ARE ONLY FIVE THE OTHERS HAVING PULLED OUT OF THE VACCINE BUSINESS BECAUSE THEY COULDN'T AFFORD THE LIABILITY RISK THERE IS NO PATENT ON THE MMR VACCINE AGAINST MEASLES MUMPS AND RUBELLA YET MERCK IS THE ONLY COMPANY WILLING TO SELL IT IN THIS COUNTRY LEDERLEPRAXIS IS THE SOLE US PROVIDER OF THE ORAL POLIO VACCINE AS IS WELL KNOWN TO KEEP THE LIABILITY PLAGUE FROM DRIVING MORE DRUG COMPANIES OUT OF THE VACCINE BUSINESS CONGRESS IN 1986 SET UP THE VACCINE INJURY COMPENSATION FUND WHICH PROVIDES NOFAULT COMPENSATION TO CHILDREN WHO HAVE BEEN INJURED BY VACCINES IT IS PAID FOR BY LARGE FEDERAL EXCISE TAXES ON VACCINES WHILE THIS SYSTEM WORKS REASONABLY WELL IT HAS BY NO MEANS PUT AN END TO THE LIABILITY PROBLEM A CLAIMANT MUST FIRST TAKE HIS CASE TO THE FUND BUT IF HE'S UNHAPPY WITH THE SETTLEMENT HE CAN STILL SUE THE MANUFACTURER WHICH IN TURN MUST SELFINSURE BECAUSE NO PRIVATE INSURANCE IS AVAILABLE ANYMORE THE COST OF LIABILITY COVERAGE IS OF COURSE ADDED TO THE PRICE OF THE VACCINE ANOTHER UNINTENDED RESULT OF THE WAVE OF LAWSUITS SOME PARENTS ARE AFRAID OF THE VACCINES BEFORE THE LIABILITY CRISIS BACK IN 1982 THE PRIVATESECTOR COST OF IMMUNIZATIONS FOR A TWOYEAROLD WAS 2017 TEN YEARS LATER AS THE TABLE SHOWS THE COST OF A COMPLETE REGIMEN OF VACCINATIONS HAD RISEN TO 18819 WITH THE FEDERAL LIABILITY TAX CONSTITUTING 125 OF THAT PRICE ANOTHER REASON THE COST HAS GONE UP IS SCIENCE THANKS TO R&D BY THE DRUG COMPANIES THERE ARE TWO NEW VACCINES CHILDREN CAN NOW BE PROTECTED AGAINST HEPATITIS B AND BACTERIAL MENINGITIS IN THE PUBLIC SECTOR THE COST OF THE SAME SET OF VACCINES LAST YEAR WAS LOWER JUST 8978 THIS IS BECAUSE GOVERNMENT BUYS IN BULK FROM THE DRUG COMPANIES AT SUBSTANTIALLY LOWER PRICES IN THE CASE OF LEDERLE'S ORAL POLIO VACCINE IT'S ABOUT ONEFIFTH THE COST TO PRIVATE PHYSICIANS SOME 50 TO 55 OF ALL PEDIATRIC VACCINES ARE PURCHASED THIS WAY BY STATE AND FEDERAL GOVERNMENTS THAT BRINGS US TO THE SECOND WIDELY KNOWN REASON THAT SO MANY CHILDREN DON'T RECEIVE THE PROPER IMMUNIZATIONS THE BUREAUCRACY CAN'T FIGURE OUT HOW TO GET THE JOB DONE ANY CHILD IN ANY STATE CAN RECEIVE FREE VACCINES AT A PUBLICHEALTH CLINIC PAID FOR BY STATE AND FEDERAL MONEY SO WHY DON'T MORE PARENTS RESPOND ONE LARGE REASON IS THAT THE PUBLIC SYSTEM IS VERY INCONVENIENT BEFORE THEY WILL ADMINISTER A VACCINATION MANY PUBLICHEALTH CLINICS REQUIRE A PHYSICIAN'S REFERRAL OR A COMPLETE PHYSICAL THEY DON'T PHONE WITH A REMINDER THAT IT'S TIME AGAIN FOR THE SHOTS AND LIKE THE DEPARTMENT OF MOTOR VEHICLES THEIR HOURS OFTEN AREN'T CONVENIENT FOR WORKING PARENTS BY THE TIME HE REACHES THE AGE OF TWO A CHILD IS SUPPOSED TO HAVE HAD 15 SHOTS WHICH ADD UP TO A LOT OF WAITING AND WHINING IN CLINIC LINES HOW POOR IS THE DELIVERY SYSTEM IN THE 11 STATES THAT PURCHASE ALL VACCINES FOR FREE DISTRIBUTION TO ALL CHILDREN REGARDLESS OF INCOME THE VACCINATION RATE IS JUST 61 COMPARED WITH THE NATIONAL AVERAGE OF 58 SO YES THERE'S A PROBLEM BUT CLEARLY IT'S ABOUT SOMETHING MORE COMPLICATED THAN JUST PRICE THE PRESIDENT'S ANSWER IS TO SPEND 300 MILLION TO IMPROVE OUTREACH EFFORTS AND HIRE MORE STAFF FOR THE PUBLIC CLINICS THIS IS REINVENTING GOVERNMENT IN AN AD PLACED IN FOUR NEWSPAPERS LAST FRIDAY P ROY VAGELOS CEO OF MERCK DEFENDED THE DRUG COMPANIES AGAINST MR CLINTON'S ACCUSATIONS AND CALLED FOR A SEARCH FOR TRUTH NOT FOR SCAPEGOATS DR VAGELOS HAS A LEGITIMATE BEEF EVEN IF THE DRUG INDUSTRY DELIVERED A YEAR'S SUPPLY OF VACCINES TO THE CLINTONS' DOORSTEP FOR FREE IT'S NOT LIKELY THAT THE PUBLICHEALTH SYSTEM COULD GET THE JOB DONE THAT IS INDEED A SERIOUS PROBLEM BUT BY DIVERTING ATTENTION TO UNCONSCIONABLE DRUG PROFITS AS HE DID WITH TAXES ON THOSE WHO BENEFITED MOST IN THE PAST MR CLINTON AGAIN HAS CREATED A USEFUL SCAPEGOAT WE WONDER WHO'S NEXT 9302230012 930223 JUSTICES TO DECIDE IF 1991 JOBBIAS LAW APPLIES TO CASES PENDING WHEN ENACTED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER A MAJOR 1991 JOBDISCRIMINATION LAW APPLIES TO CASES THAT WERE PENDING WHEN THE STATUTE WAS ENACTED THE QUESTION IS CRITICAL FOR BUSINESS BECAUSE SUCH APPLICATION OF THE CIVIL RIGHTS ACT OF 1991 COULD ALLOW EMPLOYEES TO GO FORWARD WITH THOUSANDS OF WORKPLACEBIAS LAWSUITS THE SUPREME COURT IS EXPECTED TO HEAR ARGUMENTS ON THE ISSUE NEXT FALL AND ISSUE A RULING IN 1994 THE CIVIL RIGHTS LAW WAS DESIGNED TO MODIFY OR REVERSE THE EFFECT OF A SERIES OF 1989 SUPREME COURT DECISIONS THAT HAD MADE IT MORE DIFFICULT FOR EMPLOYEES TO FILE AND WIN JOBDISCRIMINATION SUITS THE LAW ALSO ALLOWED WOMEN TO SEEK PUNITIVE AND COMPENSATORY DAMAGES RATHER THAN JUST BACKPAY IN GENDERBIAS CASES CONGRESS ALMOST GUARANTEED CONFUSION AND EXTRA LITIGATION WHEN IT FAILED TO MAKE CLEAR WHETHER THE ACT WOULD APPLY TO PLAINTIFFS WHO HAD FILED DISCRIMINATION CLAIMS BEFORE THE LAW WAS ENACTED IN NOVEMBER 1991 FORMER PRESIDENT BUSH INDICATED THAT HE WOULDN'T HAVE SIGNED THE ACT IF CONGRESS HAD EXPLICITLY MADE IT RETROACTIVE SOME REPUBLICANS AND MANY BUSINESS INTERESTS CONTEND THE NEW LAW SHOULD BE APPLIED ONLY PROSPECTIVELY THAT WOULD LIMIT EMPLOYERS' LIABILITY BUT SOME DEMOCRATS INCLUDING THE MAIN SPONSORS OF THE ACT SAY IT SHOULD APPLY TO THE PENDING CASES AS WELL AND SOME ARGUE THAT THE LAW SHOULD APPLY TO CERTAIN LAWSUITS THAT WERE FILED AFTER IT TOOK EFFECT BUT ALLEGE DISCRIMINATION THAT OCCURRED BEFORE NOVEMBER 1991 FEDERAL APPEALS COURTS GENERALLY HAVE APPLIED THE LAW PROSPECTIVELY BUT ONE FEDERAL APPEALS COURT AND SEVERAL FEDERAL TRIAL COURTS HAVE ISSUED RULINGS APPLYING IT RETROACTIVELY THE SUPREME COURT HAS STRUGGLED WITH THE QUESTION OF WHETHER AS A GENERAL MATTER CONGRESSIONAL LEGISLATION OUGHT TO HAVE ANY RETROACTIVE EFFECT THE HIGH COURT'S DECISIONS ON THE FREQUENTLY LITIGATED ISSUE ARE CONTRADICTORY THE HIGH COURT AGREED TO HEAR APPEALS IN TWO SEPARATE CASES CONCERNING THE 1991 CIVIL RIGHTS LAW IN ONE A TEXAS WOMAN HAD FILED SUIT AGAINST HER FORMER EMPLOYER IN 1989 ALLEGING THAT SHE HAD BEEN SUBJECTED TO VERBAL AND PHYSICAL SEXUAL HARASSMENT BY ANOTHER EMPLOYEE THE WOMAN ARGUES THAT A FEDERAL APPEALS COURT ERRED WHEN IT RULED LAST YEAR THAT SHE WASN'T COVERED BY A CIVIL RIGHTS ACT PROVISION ALLOWING SEXDISCRIMINATION VICTIMS TO COLLECT COMPENSATORY AWARDS FOR SUCH THINGS AS EMOTIONAL SUFFERING OR PUNITIVE AWARDS DESIGNED TO DETER OR PUNISH ILLEGAL CONDUCT THE OTHER CASE INVOLVES TWO BLACK GARAGE MECHANICS FROM OHIO WHO SUED THEIR FORMER EMPLOYER AFTER THEY WERE FIRED IN 1986 THE PLAINTIFFS ARGUED THAT THEY SHOULD BE PROTECTED RETROACTIVELY BY A PART OF THE 1991 ACT INVOLVING A WIDELY USED FEDERAL CIVIL RIGHTS LAW KNOWN AS SECTION 1981 IN THE 1991 ACT CONGRESS SAID THE HIGH COURT HAD BEEN MISTAKEN WHEN IT LIMITED SECTION 1981 TO APPLY ONLY TO THE MAKING AND ENFORCEMENT OF CONTRACTS INCLUDING HIRING AGREEMENTS CONGRESS SAID THAT SECTION 1981 SHOULD EXTEND TO COVER DISCRIMINATORY ONTHEJOB HARASSMENT AND FIRINGS AS WELL LANDGRAF VS USI FILM PRODUCTS RIVERS VS RAILWAY EXPRESS INC SEPARATELY THE JUSTICES LET STAND A LOWERCOURT RULING THAT SAID FEDERAL LAW PROHIBITS PESTICIDES THAT MAY CAUSE CANCER REGARDLESS OF HOW SMALL THE RISK THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN FRANCISCO REVERSED A BUSH ADMINISTRATION REGULATION ALLOWING CERTAIN PESTICIDE RESIDUES IN PROCESSED FOOD THAT WERE FOUND TO CAUSE ONLY A NEGLIGIBLE RISK OF CANCER THE NINTH CIRCUIT SAID THE LANGUAGE AND PURPOSE OF THE RELEVANT FEDERAL PROVISION KNOWN AS THE DELANEY CLAUSE REFLECT THAT CONGRESS INTENDED THE ENVIRONMENTAL PROTECTION AGENCY TO PROHIBIT ALL ADDITIVES THAT ARE CARCINOGENIC REGARDLESS OF THE DEGREE OF RISK INVOLVED THE JUSTICES DECLINED TO HEAR AN APPEAL OF THAT DECISION FILED BY AN AGRICULTURAL CHEMICAL TRADE GROUP INDUSTRY OFFICIALS AND ENVIRONMENTALISTS HAD EXPECTED THE HIGH COURT DECISION WHICH WILL INCREASE PRESSURE ON THE CLINTON ADMINISTRATION AND CONGRESS TO FASHION AN ALTERNATIVE TO THE DELANEY CLAUSE IF THERE ISN'T A PROMPT LEGISLATIVE SOLUTION THE EPA WILL BE FORCED TO WITHDRAW DOZENS OF WIDELY USED PESTICIDES THE EPA HAS IDENTIFIED 35 CHEMICALS THAT COULD BE BANNED THE SUPREME COURT ALSO DECLINED TO DISTURB A LOWER COURT RULING THAT MADE IT EASIER FOR AMERICAN TELEPHONE & TELEGRAPH CO TO BLOCK ANTITRUSTLAW CHANGES THAT WOULD HELP REGIONAL PHONE COMPANIES THE DISPUTE AROSE FROM THE 1982 ANTITRUST SETTLEMENT UNDER WHICH AT&T AGREED TO DIVEST ITSELF OF THE SEVEN REGIONAL BELL OPERATING COMPANIES KNOWN AS THE BABY BELLS THE SETTLEMENT KNOWN AS A CONSENT DECREE RESTRICTED THE BABY BELLS FROM PROVIDING LONGDISTANCE SERVICE AMONG OTHER THINGS THE BABY BELLS HAVE BEEN TRYING TO MODIFY THE DECREE SO THAT THEY MAY COMPETE IN PROFITABLE MARKETS FROM WHICH THEY HAVE BEEN EXCLUDED IN THE CASE THE JUSTICES DECLINED TO REVIEW THE BELLS HAD SOUGHT PERMISSION TO SELL A MORE EFFICIENT MEANS TO TRANSMIT ELECTRONIC SIGNALS THAT ROUTE CALLS FROM ONE AREA TO ANOTHER THE BELLS ALREADY USE THIS TECHNOLOGY KNOWN AS COMMON CHANNEL SIGNALLING WITHIN LOCAL CALLING AREAS THEY WANTED TO MARKET THE TECHNOLOGY TO SMALLER LONGDISTANCE CARRIERS THAT COMPETE WITH AT&T THE JUSTICE DEPARTMENT APPROVED OF THE PROPOSED MODIFICATION OF THE DECREE IT SAID THAT ALLOWING THE BABY BELLS TO USE THE IMPROVED TECHNOLOGY WOULD INCREASE COMPETITION AND BENEFIT CONSUMERS BUT AT&T AND MCI COMMUNICATIONS CORP THE TWO LARGEST LONGDISTANCE CARRIERS OPPOSED THE CHANGE AT&T AND MCI ALREADY HAVE THEIR OWN COMMON CHANNEL SIGNALLING NETWORKS AND STOOD TO LOSE BUSINESS IF THEIR SMALLER COMPETITORS GAIN THE SAME CAPACITY HAROLD GREENE THE FEDERAL JUDGE IN WASHINGTON WHO OVERSEES THE DECREE ORIGINALLY DENIED THE REQUESTED MODIFICATION THE BABY BELLS APPEALED BUT US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT AFFIRMED THE RULING THE APPEALS COURT SAID THAT AS A PARTY TO THE ORIGINAL DECREE AT&T COULD EFFECTIVELY BLOCK MODIFICATIONS THE BABY BELLS APPEALED TO THE SUPREME COURT CONTENDING THAT THE LOWER COURTS SHOULD HAVE ANALYZED THE PROPOSED CHANGE UNDER A MORE FLEXIBLE STANDARD THAT WOULD PERMIT MODIFICATIONS DEEMED TO BE IN THE PUBLIC INTEREST HOWEVER THE JUSTICE DEPARTMENT IN A SEPARATE BRIEF TOLD THE HIGH COURT THAT WHILE THE DC CIRCUIT APPLIED TOO TOUGH A STANDARD ON MODIFICATION THERE IS NO PRESSING NEED AT THIS TIME FOR THE SUPREME COURT TO REVIEW THIS CASE THE HIGH COURT'S REFUSAL TO ACT YESTERDAY DOESN'T RULE OUT ITS INTERVENING IN RELATED CASES IN THE FUTURE IF THE JUSTICE DEPARTMENT ITSELF WERE TO SUGGEST A MODIFICATION THE JUSTICES PROBABLY WOULD SERIOUSLY CONSIDER DOING SO AMERITECH CORP VS AMERICAN TELEPHONE & TELEGRAPH CO BELLSOUTH CORP VS AT&T CO IN OTHER ACTION THE SUPREME COURT 9302230009 930223 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE UNION LEADERS NOW FIND LABOR SECRETARY REICH THE PERFECT CHOICE IN FLORIDA LAST WEEK REICH LETS HIS PRESCRIBED 45MINUTE DISCUSSION WITH THE 35MEMBER AFLCIO EXECUTIVE COUNCIL RUN 2 1/2 HOURS ON MR REICH'S PROMISE LIST TO PRESS FOR A BAN ON HIRING PERMANENT REPLACEMENTS FOR STRIKERS TO SEEK A MINIMUMWAGE INCREASE AND TO REVIEW LABOR LAWS WHICH COULD EASE UNION ORGANIZING WITH PROLABOR EXECUTIVE ORDERS ON UNION DUES AND FEDERAL CONSTRUCTION PROJECTS ALREADY ISSUED THE AGENCY NOW PLANS TO SUSPEND A BUSH FIAT CREATING ACCOUNTING TROUBLES FOR UNION LOCALS MY EARS CAN'T BELIEVE WHAT I'M HEARING CROWED JACK SHEINKMAN HEAD OF THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION WE HAVE A LABOR DEPARTMENT THAT CARES ABOUT WORKING PEOPLE THE UNIONISTS' SOLE DISAPPOINTMENT THE ADMINISTRATION POSTPONES A DECISION ON REINSTATING AIRTRAFFIC CONTROLLERS FIRED BY PRESIDENT REAGAN IN 1981 LABOR'S TRIUMPH REICH'S DEPARTMENT IS A BIG WINNER IN CLINTON'S BUDGET IT GAINS NEW RESPONSIBILITIES AND LOTS MORE MONEY FOR TRAINING PROGRAMS SOME 46 BILLION OVER FOUR YEARS ARE EARMARKED TO TRAIN WORKERS DISLOCATED BY DEFENSE CUTBACKS TRADE PACTS OR ECONOMIC CONTRACTION A NEW YOUTH APPRENTICESHIP PLAN WHICH WOULD LINK BUSINESSES WITH HIGH SCHOOLERS NOT PLANNING TO ATTEND COLLEGE IS SET TO RECEIVE 12 BILLION OVER FOUR YEARS SUMMER YOUTH JOBS BOOSTED UNDER THE CLINTON ECONOMICSTIMULUS PLAN NOW WILL BE TIED TO TUTORING TO HELP KIDS WITH SCHOOL WORK ELDERLY WORKERS' PROGRAMS ARE SET TO GROW FROM 4 MILLION NEXT YEAR TO 35 MILLION IN 1996 CUTS ARE SCANT AT THE AGENCY BECAUSE REICH SAYS THERE WERE SHARP REDUCTIONS UNDER BUSH AND REAGAN RELIABLE REFERENCES ARE GETTING DIFFICULT TO FIND FULLY 68 OF COMPANIES SURVEYED BY PERSONNEL FIRM ROBERT HALF SAY IT HAS BECOME HARDER TO CHECK JOB APPLICANTS' REFERENCES FORMER EMPLOYERS SAY NOTHING OR ONLY NICE THINGS FRETS SHARON STARK A MANAGER AT AMERICAN POWER CONVERSION MARY ANN CHENELL HUMANRESOURCES DIRECTOR FOR DESIGN INC IN BOSTON BELIEVES COMPANIES CLAM UP FOR FEAR OF LAWSUITS FROM FORMER EMPLOYEES LACKING HELPFUL REFERENCES HER FIRM REQUIRES FOUR JOB INTERVIEWS SOFTWARE COMPANY LOTUS DEVELOPMENT IN CAMBRIDGE MASS SEEKS OUT JOB SEEKERS' FORMER COLLEAGUES JUDY JIVOREC HUMANRESOURCES MANAGER AT MINNEAPOLIS'S CERIDIAN CORP SAYS PEOPLE WHO WORKED WITH A CANDIDATE BUT HAVE SINCE MOVED TO NEW JOBS THEMSELVES TEND TO BE MORE CANDID SOME 44 OF COMPANIES TOLD ROBERT HALF THAT A FORMER EMPLOYER'S RELUCTANCE TO COMMENT HURTS APPLICANTS' CHANCES OF BEING HIRED PROTESTS KILL A PROPOSAL TO LET LONGHAUL TRUCKERS DRIVE UP TO 100 HOURS IN ANY EIGHTDAY PERIOD 30 MORE THAN THE CURRENT LIMIT PUBLICINTEREST AND INSURANCEINDUSTRY GROUPS AND THE TEAMSTERS FLOODED THE FEDERAL HIGHWAY ADMINISTRATION WITH LETTERS CALLING THE PROPOSED CHANGE UNFAIR TO TRUCKERS AND UNSAFE FOR OTHER DRIVERS THE AGENCY WAS BASICALLY OVERWHELMED SAYS STAFFER DEBORAH FREUND WORKERS' COMPENSATION COSTS ARE RISING MOSTLY BECAUSE OF DEFICIENCIES IN THE HANDLING OF CLAIMS NOT BECAUSE OF INCREASED CLAIMS OR HIGHER BENEFITS SAYS THE WORKERS COMPENSATION RESEARCH INSTITUTE IT CITES GROWING DURATION OF DISABILITY MORE ATTORNEY INVOLVEMENT AND INCREASING LUMPSUM SETTLEMENTS HIGHER MEDICAL COSTS ARE A FACTOR TOO MORE THAN HALF OF ALL WORKERS AT MIDSIZE AND LARGE COMPANIES ARE NOW ENROLLED IN HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGED CARE HEALTH PLANS ACCORDING TO A SURVEY OF 1057 FIRMS BY KPMG PEAT MARWICK THAT IS UP FROM 29 IN 1988 THE PORTION OF COMPANIES OFFERING CONVENTIONAL INDEMNITY COVERAGE HAS DECLINED FROM 89 IN 1988 TO JUST 62 TOP TEMPS MORE EXECUTIVES SERVE AS TEMPORARY EMPLOYEES THE NUMBER OF INTERIM EXECUTIVE PLACEMENT AGENCIES HAS JUMPED IN FOUR YEARS TO ABOUT 80 FROM JUST 10 COMPANIES LIKE FIRST NATIONAL BANK OF CHICAGO HIRE TEMPORARY PROFESSIONALS TO HANDLE FLUCTUATING WORKLOADS ESPECIALLY IN ADVERTISING AND MARKETING IT'S A VERY EFFECTIVE WAY TO CAPITALIZE ON EXPERTISE WITHOUT ADDING TO THEIR HEAD COUNT EXPLAINS BRIAN GAUNY OF MERIT RESOURCES GROUP THE UNIVERSITY OF CALIFORNIA AT BERKELEY STARTED USING TEMP BOSSES AFTER BUDGET CUTS ATE INTO ITS ADMINISTRATIVE STAFF IT SAYS OUTSIDERS BRING AN UNBIASED PERSPECTIVE BUT FUNCTION MORE LIKE TEAM MEMBERS THAN CONSULTANTS DO MANY TEMPS HOPE TO LAND PERMANENT JOBS BUT BRYAN ENGLISH OF THE STAFF ALTERNATIVE IN STAMFORD CONN SAYS SOME EXECUTIVES PREFER THE EXCITEMENT AND VARIABILITY OF PROJECT WORK THEY SEE YOU AS A MASKED AVENGER WHO SWOOPS IN AND OUT FIXES THINGS AND GIVES THEM A ROAD MAP OF WHERE TO GO NEXT SAYS LINDA ROSSO A SAN FRANCISCO MARKETING TEMP THE CHECKOFF TEAMSTERS OFFICIALS SCRAMBLE TO FIND A COSTUME RESEMBLING KIDTV'S DINOSAUR BARNEY TO PICKET HASBRO INC AT THE NEW YORK TOY FAIR BUT A LASTMINUTE CONTRACT SETTLEMENT WITH THE COMPANY MAKES THE OUTFIT UNNECESSARY REVOLVING DOOR FORMER LABOR SECRETARY LYNN MARTIN TAKES REICH'S PLACE AS COMMENTATOR ON PUBLIC RADIO'S MARKETPLACE SHOW 9302230008 930223 CORPORATE FOCUS GOODRICH FACES TOUGH TASK PITCHING ITS NEW STRATEGY FIRM TRIES TO SHOW TIMING IS RIGHT FOR SALE OF STAKE IN VINYL DIVISION BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL BF GOODRICH CO FACES ITS TOUGHEST SELLING JOB SINCE THE LATE 1980S WHEN IT RESORTED TO ADVERTISING TO CONVINCE THE WORLD IT NO LONGER MADE TIRES AND NEVER DID FLY A BLIMP NOW THE AKRON OHIO COMPANY MUST CONVINCE INVESTORS THIS IS THE PERFECT TIME FOR IT TO SELL A MAJORITY STAKE IN ITS CYCLICAL VINYL PLASTICS BUSINESS EVEN THOUGH VINYL PROFITS ARE POISED TO IGNITE AFTER TWO YEARS OF LOSSES FURTHERMORE GOODRICH WANTS TO USE SALE PROCEEDS TO BUY BUSINESSES WITH A BRIGHT EARNINGS FUTURE SERVICING THE AVIATION INDUSTRY FORGET THAT THE AVIATION INDUSTRY IS IN A NOSEDIVE GOODRICH IS BETTING THAT THE MARKET IS RIGHT FOR SELLING MOST OF ITS VINYL PLASTICS BUSINESS NOW AND THAT THE AVIATION INDUSTRY HOLDS MANY PROMISING OPPORTUNITIES SO FAR GOODRICH'S STRATEGY HAS GONE OVER LIKE A LEAD BLIMP INVESTORS STARTED DUMPING GOODRICH STOCK AFTER THE COMPANY ANNOUNCED WEDNESDAY THAT IT INTENDS TO SELL AT LEAST 50 OF ITS POLYVINYL CHLORIDE PLASTIC BUSINESS TO THE PUBLIC THE STOCK SLID 1125 WEDNESDAY AND THE SELLOFF TURNED INTO A ROUT THE NEXT DAY AS THE PRICE PLUNGED 11 OR 575 TO CLOSE AT 45625 IN HEAVY NEW YORK STOCK EXCHANGE TRADING BOEING CO INADVERTENTLY HELPED KNOCK THE WIND FROM GOODRICH'S SALES PITCH WHEN THE MAJOR PURCHASER OF GOODRICH AVIATION BRAKES AND WHEEL ASSEMBLIES SAID THURSDAY IT PLANNED A BIGGERTHANEXPECTED CUT OF 28000 JOBS OR 20 OF ITS WORK FORCE BY 1994 BOEING CITED WEAK AIRLINE INDUSTRY DEMAND FOR THE MOVE WHAT'S SO GOOD ABOUT INVESTING IN THE AVIATION BUSINESS IF BOEING IS CUTTING 20 OF ITS WORK FORCE ASKS ONE SECURITIES ANALYST WHO RECOMMENDED LAST WEEK AGAINST BUYING GOODRICH SHARES SURPRISED BY THE THURSDAY SELLOFF GOODRICH OFFICIALS QUICKLY MADE THEIR CASE IN A HASTILY ARRANGED CONFERENCE CALL WITH SECURITIES ANALYSTS FRIDAY WHILE MANY ANALYSTS STILL BELIEVED GOODRICH WAS MAKING THE WRONG MOVE AT THE WRONG TIME ITS STOCK ROSE ONEEIGHTH TO 4575 THOUGH GOODRICH DOESN'T NEED A SHAREHOLDER VOTE TO SELL ITS PLASTICS STAKE IT WANTS INVESTOR SUPPORT TO MAINTAIN ITS STOCK PRICE IN LATE TRADING YESTERDAY GOODRICH SHARES SKIDDED AN ADDITIONAL 2 TO 4375 GOODRICH CLAIMS IT'S A VICTIM OF A MISUNDERSTANDING ANALYSTS FOLLOW US MOSTLY FROM A PVC POINT OF VIEW WE THOUGHT PEOPLE UNDERSTOOD OUR OTHER BUSINESSES SAYS THOMAS A WALTERMIRE VICE PRESIDENT IN CHARGE OF INVESTOR RELATIONS INDEED GOODRICH IS WIDELY VIEWED ON WALL STREET AS ONE OF A HANDFUL OF INVESTMENT PLAYS ON THE PVC BUSINESS VIA ITS GEON VINYL DIVISION ONE OF THE WORLD'S BIGGEST PVC PRODUCERS GEON HAS 14 PLANTS WITH A TOTAL PVC CAPACITY OF TWO BILLION POUNDS A YEAR OR 165 OF NORTH AMERICAN PVC CAPACITY RIGID PVC PLASTIC IS WIDELY USED FOR WATER PIPES AND OTHER APPLICATIONS IN RESIDENTIAL HOUSING INCLUDING WINDOW FRAMES FLOORING AND APPLIANCES THE RECENT SURGE IN US HOUSING STARTS HAS FUELED DEMAND FOR PVC AND TRIGGERED AN INCREASE IN PVC PRICES AT ITS PEAK THE HIGHLY CYCLICAL PVC BUSINESS CAN YIELD BANNER EARNINGS IN 1988 GEON CONTRIBUTED 234 MILLION OR 80 OF GOODRICH'S 293 MILLION IN OPERATING PROFIT THAT YEAR AEROSPACE PRODUCTS AND SERVICES CHIPPED IN 41 MILLION AND SPECIALTY CHEMICALS THE COMPANY'S THIRD MAJOR DIVISION ADDED 69 MILLION WHILE CORPORATE CHARGES REDUCED THE TOTAL OPERATING PROFIT BY 51 MILLION ON THE OTHER HAND THE PVC BUSINESS CAN PRODUCE A FLOOD OF RED INK WHEN INDUSTRY CAPACITY CATCHES UP WITH DEMAND AND PRICES BREAK THAT HAPPENED IN 1991 WITH PVC PRICES HAVING PLUNGED BY NEARLY ONETHIRD TO ABOUT 28 CENTS A POUND IN THREE YEARS FORCING GOODRICH TO SHUT DOWN SEVERAL INEFFICIENT PRODUCTION PLANTS GEON REPORTED A 1991 OPERATING LOSS OF 131 MILLION ITS OTHER DIVISIONS HELPED REDUCE THE OPERATING LOSS FOR THE YEAR TO 53 MILLION LAST YEAR THE GEON DIVISION LOST 133 MILLION ON 9507 MILLION IN SALES BUT A TURNAROUND IS UNDER WAY COMPANY OFFICIALS SAY RECENT PVC PRICE INCREASES ARE STICKING AND MORE ARE ON THE WAY A TRIMMER GEON IS LIKELY TO POST OPERATING EARNINGS OF 140 MILLION BY 1995 OR 1996 THE NEXT LIKELY PEAK IN THE PVC INDUSTRY CYCLE SAYS ANALYST ANANTHA RAMAN OF SG WARBURG & CO HE CUT HIS RATING ON GOODRICH YESTERDAY TO HOLD FROM BUY SAYING THE SALE OF THE GEON STAKE COMPROMISES THE CYCLICAL EARNINGS GROWTH OF GOODRICH SO WHY DOES GOODRICH SEEK TO SELL A CONTROLLING STAKE THAT'S PRIMED TO START MINTING MONEY GOODRICH'S MR WALTERMIRE MAINTAINS THAT THE COMPANY'S STOCK PRICE PRINCIPALLY ADVANCED FROM THE LOW 40S A SHARE LAST FALL TO THE LOW 50S EARLIER THIS MONTH BECAUSE OF THE IMPROVING OUTLOOK FOR PVC WITH THE STOCK MARKET ALREADY REFLECTING MUCH OF THE VALUE OF HIGHER PVC PRICES WE DECIDED LET'S TAKE ADVANTAGE OF THE OPPORTUNITY TO SELL A STAKE IN THE BUSINESS AND MAKE ANOTHER INVESTMENT IN AVIATION HE EXPLAINS WALL STREET ISN'T BUYING THAT ARGUMENT AT LEAST NOT YET INSTITUTIONAL INVESTORS HAVE BEEN HOLDING GOODRICH SHARES OVER THE PAST TWO YEARS SOLELY TO GET THE FULL BANG FOR THEIR BUCK FROM THE NEXT PEAK IN PVC PRICES ANALYSTS CLAIM UNFORTUNATELY GOODRICH FORGOT ABOUT WHY SHAREHOLDERS OWN THE STOCK SAYS ROBERT GOLDBERG AN ANALYST WITH NEW VERNON ASSOCIATES INC MORRISTOWN NJ GOODRICH ARGUES THAT TURMOIL IN THE AVIATION INDUSTRY HAS CREATED MANY INVESTMENT OPPORTUNITIES MR WALTERMIRE SAYS THE COMPANY HAS BEEN STUDYING SEVERAL POSSIBILITIES AND EXPECTS TO ANNOUNCE AT LEAST ONE OR TWO MAJOR PURCHASES WITHIN THE NEXT SEVERAL MONTHS HE DECLINES TO BE MORE SPECIFIC WHAT'S SO GOOD ABOUT AN INDUSTRY WHERE LOSSLADEN AIRLINES CAN'T CANCEL OR DELAY AIRPLANE ORDERS FAST ENOUGH GOODRICH'S AVIATION BUSINESSES ARE HEAVILY SKEWED TOWARD SUPPLYING REPLACEMENT PARTS FOR COMMERCIAL AIRCRAFT EVEN THOUGH THEY DO SUPPLY ORIGINAL PARTS FOR BOEING AND OTHERS THE 16 SETS OF WHEELS AND BRAKES ON A BOEING 747 NEED REPLACING AT A COST OF ABOUT 100000 EVERY TWO YEARS OR SO DEPENDING ON WHETHER THE PLANE MAKES LONG HAULS OR SHORT HOPS IF ANYTHING THE REPLACEMENT PARTS AND SERVICE BUSINESS BENEFITS WHEN AIRLINES CUT BACK ON NEWPLANE ORDERS AS THEY'RE DOING GOODRICH'S AEROSPACE BUSINESS ALSO HAS RELATIVELY LITTLE EXPOSURE TO THE SHRINKING MILITARY BUDGET SINCE ABOUT THREEFOURTHS OF ITS SALES COME FROM PRIVATE INDUSTRY IN ADDITION TO WHEELS AND BRAKES THE DIVISION MAKES ENGINE AND FUEL MANAGEMENT COMPONENTS AND IS IN THE AIRCRAFT MAINTENANCE BUSINESS SO FAR THE COMPANY HAS AVOIDED THE EARNINGS DECLINE PLAGUING THE AIRLINE INDUSTRY GOODRICH'S AEROSPACE DIVISION POSTED RECORD OPERATING PROFIT OF 832 MILLION LAST YEAR ON SALES OF 750 MILLION ITS SPECIALTYCHEMICAL OPERATIONS WHICH INCLUDE A GRAB BAG OF PRODUCTS FROM ADDITIVES THAT MAKE PLASTICS MORE HEAT RESISTANT TO THE EMULSIFIER THAT KEEPS TOOTHPASTE FROM SEPARATING INTO ITS CONSTITUENT PARTS HAD OPERATING PROFIT OF 409 MILLION LAST YEAR ON 8251 MILLION OF SALES VINYL AND POLYVINYL CHORIDE PLASTICS USED PRINCIPALLY IN THE CONSTRUCTION INDUSTRY PARTS FOR THE AVIATION INDUSTRY AS WELL AS AVIATION SERVICES AND MAINTENANCE AND SPECIALTY CHEMICALS SERVING NICHE MARKETS IN PLASTICS EMULSIONS SEALANTS ADHESIVIES AND OTHER AREAS 9302230007 930223 WHO'S NEWS STANDARD REGISTER CO STANDARD REGISTER CO DAYTON OHIO JUDY L WILSON 40 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THIS BUSINESS EQUIPMENT CONCERN'S ADVANCED MEDICAL SYSTEMS DIVISION SHE SUCCEEDS GERRY EHRLICH 59 FOUNDER AND FORMER PRESIDENT OF THE DIVISION WHO RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR EHRLICH WILL REMAIN A CONSULTANT DURING THE MANAGEMENT TRANSITION MS WILSON WAS PREVIOUSLY REGIONAL VICE PRESIDENT OF CUSTOMER SERVICE AT HBO & CO A PUBLICLY HELD HOSPITAL SOFTWARE MANAGEMENT COMPANY BASED IN ATLANTA 9302230006 930223 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 HOUSEHOLD FINANCE CORP 300 MILLION ISSUE OF SENIOR NOTES DUE MARCH 1 2003 WAS WON BY UNDERWRITERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 6 7/8 AT 99722 TO YIELD 6914 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP HOUSEHOLD FINANCE IS A UNIT OF HOUSEHOLD INTERNATIONAL INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2000 WAS PRICED AT PAR TO YIELD 609 THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC WEYERHAEUSER CO 250 MILLION ISSUE OF DEBENTURES DUE MARCH 1 2013 WAS PRICED AT PAR TO YIELD 75 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 48 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY PHILADELPHIA ELECTRIC CO 250 MILLION ISSUE OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2003 WAS WON BY UNDERWRITERS LED BY LEHMAN BROTHERS THE BONDS WILL BE REOFFERED AS 6 5/8 AT 98794 TO YIELD 6793 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 62 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P PHILADELPHIA ELECTRIC CO 100 MILLION ISSUE OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY GOLDMAN SACHS & CO THE BONDS WILL BE REOFFERED AS 7 3/4 AT 98852 TO YIELD 785 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P HOUSTON 177 MILLION PUBLIC IMPROVEMENT REFUNDING BONDS HAVE BEEN PRICED BY A GOLDMAN SACHS GROUP AND GIVEN YIELDS THAT RANGE FROM 250 IN 1994 TO 565 IN 2010 GOLDMAN SACHS HAS ALSO PRICED THREE OTHER TEXAS ISSUES THOSE OFFERINGS ARE THE HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO 175'S 208 MILLION REFUNDING BONDS THE HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO 223'S 121 MILLION REFUNDING BONDS AND THE INTERWOOD MUNICIPAL UTILITY DISTRICT'S 92 MILLION REFUNDING BONDS ALL OF THOSE OFFERINGS HAVE BEEN PRICED TO YIELD FROM 255 IN 1994 TO 570 IN 2010 THE INTERWOOD ISSUE ALSO INCLUDES ZEROCOUPON BONDS THAT WILL YIELD TO MATURITY FROM 525 IN 2001 TO 555 IN 2004 CREDIT RATINGS ARE THE SAME FOR HOUSTON ISSUE AND THE OTHER OFFERINGS MOODY'S AND FITCH INVESTORS SERVICE INC HAVE ASSIGNED DOUBLEA RATINGS AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING WLR FOODS INC TWO MILLION COMMON SHARES WAS PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY AG EDWARDS & SONS INC DEAN WITTER DISCOVER & CO INITIAL PUBLIC OFFERING OF 295 MILLION SHARES OF DEAN WITTER DISCOVER & CO WAS PRICED AT 27 A SHARE THE 27 SHARE PRICE FOR DEAN WITTER DISCOVER IS WELL ABOVE THE ORIGINAL 23TO25 RANGE THAT PARENT SEARS ROEBUCK & CO HAD ANTICIPATED MOBIL OIL CANADA LTD US PARENT 125 MILLION CANADIAN OF 7 5/8 EUROBONDS DUE SEPT 22 1998 PRICED AT 101005 VIA SCOTIA MCLEOD INC BONDS REOFFERED AT 9943 TO YIELD 7 3/4 A MARGIN OF ABOUT 70 BASIS POINTS ABOVE THE CANADIAN GOVERNMENT'S 6 1/4 DUE 1998 ISSUE GUARANTEED BY MOBIL CORP FEES 1 7/8 POINTS GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION CANADIAN OF 7 1/8 EUROBONDS DUE MARCH 25 1996 PRICED AT 1009175 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9973 TO YIELD 723 A SPREAD OF 41 BASIS POINTS OVER THE COMPARABLE CANADIAN GOVERNMENT NOTE FEES TOTAL 1 3/8 NEDERLANDSE INVESTERINGSBANK VOOR ONVWIKKELINGSLANDEN DUTCH AGENCY 200 MILLION GUILDERS OF 6 3/4 EUROBONDS DUE MARCH 24 2003 PRICED AT 10055 VIA RABOBANK BONDS OFFERED AT 9980 TO YIELD 6775 A MARGIN OF ABOUT FIVE BASIS POINTS ABOVE THE DUTCH GOVERNMENT'S 7 DUE FEBRUARY 2003 FEES 1 9302230005 930223 PLACER DOME TO CLOSE GOLD MINE VANCOUVER BRITISH COLUMBIA PLACER DOME INC SAID IT PLANS TO CLOSE ITS DONA LAKE GOLD MINE IN NORTHWEST ONTARIO ON AUG 1 THE GOLD MINING CONCERN SAID EXISTING ORE RESERVES AT THE MINE WILL SUPPORT PRODUCTION ONLY UNTIL THAT DATE BUT ADDED THAT CONTINUING EXPLORATION DRILLING COULD DELAY THE CLOSURE IN 1991 PLACER DOME RECORDED A US26 MILLION WRITEDOWN AGAINST THE CARRYING VALUE OF THE DONA LAKE MINE IN 1992 THE MINE PRODUCED 46000 OUNCES OF GOLD AT THE END OF 1992 ITS GOLD ORE RESERVES TOTALED 29700 OUNCES 9302230004 930223 SEC TO PROPOSE 3DAY SETTLEMENTS ON STOCK PURCHASES BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACTING ON A FIVEYEAROLD RECOMMENDATION VOTED TO PROPOSE A RULE THAT STOCK TRANSACTIONS BE PAID FOR WITHIN THREE BUSINESS DAYS INSTEAD OF THE CURRENT FIVE THE RULE IS INTENDED TO REDUCE RISK IN THE STOCK MARKETS BY NARROWING THE TIME PERIOD IN WHICH BUYERS CAN RENEGE ON STOCK PURCHASES BUT THE CHANGE WOULDN'T OCCUR OVERNIGHT DESPITE THE YEARS ALREADY LAPSED BETWEEN THE RECOMMENDATION AND THE COMMISSION ACTION YESTERDAY THE PROPOSED RULE AS WRITTEN WOULD TAKE EFFECT JAN 1 1996 IN THE MEANTIME THE SEC WILL COLLECT COMMENTS ON THE PROPOSAL AS WELL AS POSSIBLE AMENDMENTS INCLUDING ONE MOVING UP ITS EFFECTIVE DATE TO JANUARY 1995 THE COMMISSION IS ALSO SEEKING COMMENT ON POSSIBLE AMENDMENTS THAT WOULD REQUIRE THREEDAY SETTLEMENTS OF TRANSACTIONS INVOLVING MUNICIPAL BONDS AND MORTGAGEBACKED SECURITIES THE THREEDAY RULE ON STOCK SETTLEMENTS WAS FIRST SUGGESTED BY THE PRESIDENTIAL TASK FORCE THAT EXAMINED THE STOCK MARKET CRASH OF OCTOBER 1987 ANOTHER TASK FORCE SUGGESTED A SIMILAR RULE IN MAY PERHAPS IT IS FAIR TO SAY THAT WE HAVE NOT MOVED AS FAST AS POSSIBLE TO IMPLEMENT A SHORTER SETTLEMENT PERIOD SEC CHAIRMAN RICHARD BREEDEN SAID BUT HE ADDED THE COMMISSION NEEDED THE TIME TO WIN THE COOPERATION OF THE PRIVATE SECTOR INCLUDING RETAIL BROKERS AND THEIR CUSTOMERS PARTICULARLY THOSE WHO PREFER RECEIVING STOCK CERTIFICATES TO RELYING ON COMPUTER MEMORIES FOR SOME RETAIL BROKERS THE SHORTER TIME PERIOD IS EXPECTED TO REQUIRE A POTENTIALLY COSTLY UPGRADING OF EQUIPMENT THAT WILL ALLOW THEM TO TELL RETAIL CUSTOMERS EXACTLY HOW MUCH A TRANSACTION WILL COST AT THE TIME IT IS EXECUTED SEC STAFF MEMBERS SAID THEY WON'T HAVE AN ESTIMATE OF COSTS UNTIL THEY REVIEW THE COMMENT LETTERS THAT ARE DUE JUNE 30 FOR RETAIL CUSTOMERS MR BREEDEN AND COMMISSIONER MARY SCHAPIRO SAID THEY WANTED CLEAR ASSURANCES THAT THE RULE WILL STILL PERMIT THEM TO REQUEST AND RECEIVE STOCK CERTIFICATES IN ANOTHER ACTION THE SEC APPROVED THE FORMAL IMPLEMENTATION OF ITS ELECTRONIC FILING SYSTEM FOR CORPORATE REPORTS AND SECURITIES REGISTRATIONS THE ELECTRONIC DATA GATHERING ANALYSIS AND RETRIEVAL SYSTEM KNOWN AS EDGAR HAS BEEN ACCEPTING VOLUNTARY FILINGS FROM ABOUT 1200 COMPANIES SINCE JULY UNDER THE RULE ADOPTED BY THE SEC THE FIRST MANDATORY ELECTRONIC FILINGS WILL BEGIN APRIL 26 FOR ABOUT 500 LARGE CORPORATIONS AND INVESTMENT COMPANIES ANOTHER 1200 COMPANIES WILL BE REQUIRED TO USE THE SYSTEM STARTING IN JULY THE ELECTRONIC FILING SYSTEM HAS BEEN UNDER CONSTRUCTION AND OCCASIONAL SIEGE FOR MORE THAN A DECADE BUT MR BREEDEN URGED CRITICS TO BACK OFF IT WASN'T LIKE GOING TO COMPUSA AND BUYING AN EDGAR BRINGING IT HOME AND PLUGGING IT IN HE SAID 9302230003 930223 SPECTRUM INFORMATION WINS RULING TO PROTECT ITS PHONE TECHNOLOGY MANHASSET NY SPECTRUM INFORMATION TECHNOLOGIES INC SAID IT RECEIVED A PRELIMINARY INJUNCTION AGAINST TWO DATA RACE INC EXECUTIVES AS PART OF A CONTINUING DISPUTE CONCERNING CELLULAR PHONE TECHNOLOGY DATA RACE PRESIDENT HERB HENSLEY AND LEE STAPLES THE COMPANY'S VICE PRESIDENT OF ENGINEERING AGREED WITH A RULING BY THE US DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS THAT BARS THE PAIR FROM WORKING ON ANY PRODUCTS THAT WOULD USE TECHNOLOGY POSSIBLY LINKED TO SPECTRUM'S RECENTLY PATENTED TECHNOLOGY TO TRANSMIT DATA VIA CELLULAR PHONES USING MODEMS THE INJUNCTION DOES NOT INVOLVE THE BUSINESS OF DATA RACE IN SAN ANTONIO TEXAS A SUPPLIER OF MODEMS OR ANY OTHER DATA RACE EMPLOYEES SPECTRUM A DATA COMMUNICATIONS SYSTEMS COMPANY AND DATA RACE BROKE OFF DISCUSSIONS CONCERNING A POSSIBLE JOINT WORKING AGREEMENT EARLIER THIS MONTH AND THE TWO COMPANIES ARE NOW IN LITIGATION CONCERNING POSSIBLE INFRINGEMENT BY DATA RACE ON A SPECTRUM PATENT FOR CELLULARRELATED TECHNOLOGY AT THE TIME DATA RACE SAID SPECTRUM WAS ASKING TOO MUCH FOR ITS TECHNOLOGY 9302230002 930223 WHO'S NEWS RYDER SYSTEM INC RYDER SYSTEM INC MIAMI JAMES B GRIFFIN 39 YEARS OLD WAS PROMOTED TO PRESIDENT OF THE AUTOMOTIVE CARRIER DIVISION OF THIS TRANSPORTATION SERVICES COMPANY HE SUCCEEDS TERENCE L RUSSELL 49 WHO IS THE DIVISION CHAIRMAN PREVIOUSLY MR GRIFFIN WAS VICE PRESIDENT AND GENERAL MANAGER OF RYDER COMMERCIAL LEASING & SERVICES MIDSOUTH REGION 9302230152 930104 NONLETHAL ARMS NEW CLASS OF WEAPONS COULD INCAPACITATE FOE YET LIMIT CASUALTIES MILITARY SEES ROLE FOR LASERS ELECTROMAGNETIC PULSES OTHER HIGHTECH TRICKS STICKY ROADS STALLED TANKS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL IF THE US EVENTUALLY INTERVENES IN THE FORMER YUGOSLAVIA SAYS COL JAMIE GOUGH THE AIR FORCE'S DEPUTY DIRECTOR OF PLANNING ITS ARSENAL ABSOLUTELY WILL INCLUDE A NEW CLASS OF DEVICES NONLETHAL WEAPONS WITHOUT KILLING PEOPLE SUCH WEAPONRY WOULD DISRUPT TELEPHONES RADARS COMPUTERS AND OTHER COMMUNICATIONS AND TARGETING EQUIPMENT HE SAYS OTHER DEFENSE OFFICIALS SAY THE DAMAGE WOULD BE INFLICTED BY A NEW ELECTROMAGNETIC PULSE GENERATOR THAT DISABLES EQUIPMENT WITHOUT HURTING PEOPLE THEY SAY THE US ALSO COULD DEPLOY COMBUSTION INHIBITORS THAT STOP THE ENGINES OF MOVING VEHICLES AS WELL AS CHEMICALS THAT CRYSTALLIZE AND DESTROY CERTAIN KINDS OF TIRES THESE NEW TYPES OF WEAPONS ARE ONLY A TINY FRACTION OF THE CURRENT DEFENSE BUDGET OF 2743 BILLION BUT THEY ARE RAPIDLY GAINING FAVOR AT LEAST TWO DOZEN PROJECTS EXPLORING NONLETHAL TECHNOLOGIES ARE UNDER WAY AT DEFENSE LABORATORIES SEVERAL OF THE US'S 10 REGIONAL COMMANDERSINCHIEF WITHIN THE PAST 18 MONTHS HAVE SENT THE JOINT CHIEFS CLASSIFIED MISSION NEEDS STATEMENTS ASKING FOR NONLETHAL WEAPONS LES ASPIN PRESIDENTELECT CLINTON'S NOMINEE FOR SECRETARY OF DEFENSE HAS ALSO EXPRESSED INTEREST IN NONLETHAL WEAPONRY IF THE GULF WAR MADE SMART WEAPONS FAMILIAR TO THE WORLD THE NEXT US CONFLICT IS LIKELY TO INTRODUCE NICER WEAPONS IN WHAT COULD BE A NOTEWORTHY STEP IN AMERICAN MILITARY STRATEGY BY DEVISING WAYS TO STOP AN ADVERSARY WITHOUT KILLING ITS SOLDIERS OR DEVASTATING THEIR HARDWARE ADVOCATES SAY THE US COULD GREATLY WIDEN ITS RANGE OF POTENTIAL MILITARY RESPONSES TO THREATS ABROAD PROPONENTS OF NONLETHALITY SAY IT MAY BE BEST SUITED TO SOMALIA AND OTHER PEACEMAKING MISSIONS THE US MILITARY MAY TAKE ON IN THE POSTCOLD WAR WORLD MARINES IN MOGADISHU MAY SOON WISH THEY HAD STUN GUNS OR OTHER NONLETHAL MEANS OF DISARMING 14YEAROLDS TOTING AK47S NOTES ONE FAN OF THE NEW WEAPONRY DESPITE THE NAME NONLETHAL WEAPONS ARE HARDLY GENTLE AND IN A FEW INSTANCES THEY COULD EVEN MAKE WAR MORE GROTESQUE FOR EXAMPLE POWERFUL LASERS DESIGNED TO DESTROY AN ENEMY TANK'S OPTICS COULD ALSO EXPLODE A SOLDIER'S EYEBALLS PORTABLE MICROWAVE WEAPONS BEING FIELDTESTED BY THE US SPECIAL FORCES CAN QUIETLY CUT ENEMY COMMUNICATIONS BUT ALSO CAN COOK INTERNAL ORGANS I DON'T KNOW THAT NONLETHALITY IS ALL THAT HUMANE CONCLUDES MYRON L WOLBARSHT A DUKE UNIVERSITY OPHTHALMOLOGIST AND EXPERT ON LASER WEAPONS WHAT'S MORE THE QUIET US MOVE INTO NONLETHALITY COULD PRY OPEN A PANDORA'S BOX OF CHEMICAL BIOLOGICAL AND NUCLEAR WEAPONRY THAT DIPLOMATS HAVE SPENT MUCH OF THE 20TH CENTURY TRYING TO KEEP CLOSED THE US CENTRAL COMMAND THE UNIFIED COMMAND FOR THE MIDDLE EAST THAT FORMERLY WAS HEADED BY GEN NORMAN SCHWARZKOPF HAS TOLD THE JOINT CHIEFS OF STAFF THAT IT WANTS A WIDEAREAPULSE CAPABILITY THAT IS THE ABILITY TO FRY ENEMY ELECTRONICS BY DETONATING A WARHEAD OUTSIDE THE ATMOSPHERE THE CENTRAL COMMAND'S STATEMENT DIDN'T EXPRESSLY SAY SO BUT ONLY A NUCLEAR EXPLOSION WOULD BE POWERFUL ENOUGH TO DO THE JOB YOU'RE PROBABLY TALKING ABOUT A FEW TENS OF KILOTONS SAYS EARL RUBRIGHT SCIENCE ADVISER TO THE CENTRAL COMMAND HE CONTENDS THAT THE IRAQI ARMY INVADING KUWAIT IN 1991 COULD HAVE BEEN STOPPED NONLETHALLY WITH ONE SUCH PULSE BLAST EVEN IN ITS LESS CONTROVERSIAL FORMS NONLETHALITY HAS BEEN CAUGHT UP IN THE DEBATE ABOUT THE US ROLE IN THE POSTCOLD WAR WORLD JOINT CHIEFS CHAIRMAN COLIN POWELL ARGUES THAT THE US SHOULD USE ITS MILITARY ONLY WHEN IT CAN APPLY DECISIVE AND OVERWHELMING FORCE NONLETHALITY LOWERS THAT HURDLE BY MAKING IT EASIER TO INVOKE THE MILITARY IN A CRISIS IT GIVES YOU MORE OPTIONS BUT THERE'S A DANGER OF ILLUSIONS THAT THESE THINGS CAN BE DONE MORE QUICKLY AND PRECISELY SAYS A SENIOR AIR FORCE OFFICER MANY OFFICERS ALSO WONDER HOW THE EXOTIC NEW WEAPONS WOULD WORK ON THE BATTLEFIELD DISABLING EQUIPMENT COULD REQUIRE BETTER TARGETING INTELLIGENCE THAN THE US GATHERED IN THE GULF WAR AND ONCE A PLATOON OF ADVANCING TANKS HAD BEEN SAY PULSED OR LASERED INTO SUBMISSION HOW WOULD A COMMANDER KNOW WHICH ONES REALLY HAD LOST THEIR TARGETING MECHANISMS AND WHICH WERE PLAYING POSSUM A BIGGER WORRY IS THAT NONLETHAL WEAPONS SOMEDAY MAY BE AIMED AT US FORCES BECAUSE THE US MILITARY IS INCREASINGLY HIGHTECH IT'S PERHAPS MORE VULNERABLE TO DISABLING MEASURES THAN MANY POTENTIAL ADVERSARIES AN ARMY PAPER WARNS BUT NONLETHALITY ALSO HAS MANY MILITARY ADVOCATES ESPECIALLY AMONG DEFENSE INTELLECTUALS WHO SEE IT REDEFINING MODERN WARFARE WHAT TOOK 9000 BOMBS TO DESTROY IN WORLD WAR II AND 300 BOMBS IN VIETNAM THEORETICALLY REQUIRED ONLY A SINGLE SMART BOMB IN THE GULF WAR IN THE NEXT WAR WITH PRECISE TARGETING ABILITIES AND NONLETHAL WEAPONS THEY ASK WHETHER WE NEED A BOMB AT ALL THESE BOOSTERS SEE NONLETHAL ARMAMENTS AS PART OF THE TRANSITION FROM INDUSTRIALERA WARS OF DIRECTFIRE ATTRITION TO INFORMATIONAGE WARS IN WHICH THE EMPHASIS IS ON PARALYZING THE ADVERSARY NOT NECESSARILY DESTROYING HIM RATHER THAN REPLACE ARTILLERY AND EXPLOSIVES THE NEW NONLETHAL WEAPONRY WOULD BE MIXED INTO THE OLD ARSENAL FOR INSTANCE A 40MM LASER CARTRIDGE HAS BEEN DEVELOPED TO FIT INTO A STANDARD GRENADE LAUNCHER MILTON FINGER DIRECTOR OF THE ADVANCED CONVENTIONAL WEAPONS PROGRAM AT LAWRENCE LIVERMORE NATIONAL LABORATORY PREDICTS THAT NONLETHAL WEAPONS WILL BECOME AN IMPORTANT ADJUNCT TO THE COMMON INSTRUMENTS OF WAR THEY'RE ALL REAL SAYS RETIRED ARMY LT GEN RICHARD TREFRY A FORMER MILITARY ASSISTANT TO PRESIDENT BUSH AND A FAN OF NONLETHALITY BUT YOU'RE BORDERING ON CLASSIFIED STUFF HERE TO FIGURE OUT HOW TO USE THE NEW WEAPONS THE ARMY'S TRAINING AND DOCTRINE COMMAND IN SEPTEMBER CIRCULATED TO THE MILITARY'S TOP COMMANDERS A 34PAGE DRAFT STATEMENT ON NONLETHAL WEAPONS A WIDE RANGE OF DISABLING MEASURES TECHNOLOGIES AND APPLICATIONS NOW EXISTS IT STATES THIS WAS NOT TRUE 10 YEARS AGO ONE MAJOR REASON THEY DO EXIST NOW IS THAT ABOUT A DECADE AGO JOHN ALEXANDER BEGAN THINKING ABOUT THEM AN ARMY SPECIAL FORCES VETERAN OF VIETNAM HE LED ETHNIC CAMBODIAN IRREGULARS IN THE MEKONG DELTA HE WENT ON TO STUDY NEARDEATH EXPERIENCES WITH ELISABETH KUBLERROSS THEN IN 1980 HE PUBLISHED AN ARTICLE IN MILITARY REVIEW MAGAZINE ABOUT THE NEW MENTAL BATTLEFIELD WHICH HE SAID COULD INVOLVE TELEPATHY OR WEAPONS THAT INTERFERED WITH THE BRAIN'S OWN ELECTRICAL ACTIVITY THAT CAUGHT THE ATTENTION OF TWO SENIOR ARMY GENERALS WHO ENCOURAGED HIM TO PURSUE WHAT WERE THEN CALLED SOFT KILL TECHNOLOGIES IN 1988 COL ALEXANDER LEFT THE MILITARY AND JOINED LOS ALAMOS NATIONAL LABORATORY WHERE HE IS ATTACHED TO THE SPECIAL TECHNOLOGIES GROUP MEANWHILE HIS INTEREST IN PARAPSYCHOLOGY LED HIM TO COLLABORATE ON A BOOK ON MINDTRAINING TECHNIQUES WITH JANET MORRIS A SCIENCEFICTION WRITER INTERESTED IN COUNTERTERRORISM SHE ENLISTED RAY CLINE A WELLCONNECTED FORMER DEPUTY DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY WHO WAS ABLE TO OPEN DOORS AT THE WHITE HOUSE AND PENTAGON A US LEAD IN NONLETHAL TECHNOLOGIES WILL INCREASE OUR OPTIONS AND REINFORCE OUR POSITION IN THE POSTCOLD WAR WORLD PAUL WOLFOWITZ UNDER SECRETARY OF DEFENSE FOR POLICY WROTE TO DEFENSE SECRETARY DICK CHENEY AFTER THE GULF WAR OUR R&D EFFORTS MUST BE INCREASED A PENTAGON STRATEGY GROUP CALLED TOGETHER AFTER THE WAR WAS ENTRANCED BY THE POSSIBILITIES ONE LESSON OF THE GULF WAR WAS THAT US HIGH TECHNOLOGY WORKED ANOTHER WAS THAT GLOBAL MEDIA COVERAGE COULD QUICKLY TURN HEAVY CASUALTIES EVEN AMONG THE ADVERSARY INTO A POLITICAL ISSUE BY USING TECHNOLOGY TO REDUCE CASUALTIES NONLETHALITY HEEDS BOTH LESSONS THE STRATEGISTS ENVISIONED THAT IN A SUBSEQUENT CRISIS NONLETHAL WEAPONS COULD FIRST BE USED IN CONCERT WITH ECONOMIC SANCTIONS FOR EXAMPLE ROADS LEADING INTO AN EMBARGOED NATION COULD BE DUSTED WITH CRYSTALLIZING POWDER THAT WOULD DESTROY TRUCK TIRES FUEL TANKERS GOING INTO THE AREA COULD BE CLANDESTINELY TREATED WITH A MICROBE THAT JELLIFIES GASOLINE AIRCRAFT RUNWAYS IN THE AREA COULD BE CLOSED BY SPRAYING THEM WITH SUPERSTICKY ROACH MOTEL POLYMERS RAILROAD TRACKS COULD BE RENDERED USELESS BY SUPERSLICK ANTITRACTION POLYMERS AND LUBRICANTS BRIDGES COULD BE QUIETLY WEAKENED WITH SUPERCAUSTIC ACIDS SO THAT REFUGEES COULD CROSS BUT NOT TRUCKS PEOPLE MOVING INTO RESTRICTED ZONES SUCH AS BORDER CROSSINGS COULD BE TRAPPED BY QUICKSETTING HARD FOAM OR DETERRED FROM ENTERING BY ACOUSTIC GENERATORS THAT COULD BE FINETUNED TO BE ANYTHING FROM MILDLY IRRITATING TO ORGANBURSTING AS THE HYPOTHETICAL CRISIS ESCALATED THE PENTAGON STRATEGISTS DREAMED OTHER NONLETHAL WEAPONS COULD COME INTO PLAY WHAT THEY ASKED IF THE US COULD PREEMPTIVELY DISABLE THE OTHER SIDE'S TRUMP CARD WEAPONS SECRET LOWORBIT SATELLITES COULD NEUTRALIZE THE LAUNCH SITES OF A STATE THREATENING CHEMICAL OR NUCLEAR BLACKMAIL OR EVEN PULSE OUT THE ELECTRONIC TRIGGERS ON THOSE WEAPONS MEANWHILE SPECIAL FORCES OPERATORS COULD DAUB AIRCRAFT WINGS WITH EMBRITTLING CHEMICALS WHILE DRONE AIRCRAFT COULD CRIPPLE ENEMY WEAPONS BY SPRAYING THEM WITH METALEATING MICROBES IF WAR DID OCCUR POTENT MICROWAVES COULD BE DEPLOYED TO DETONATE ENEMY AMMUNITION DUMPS BEFORE THE MUNITIONS COULD BE USED ENEMY COMMUNICATIONS COULD BE FRIED BY MICROWAVES OR BY SMALL PULSES PRODUCED BY NONNUCLEAR DEVICES ENEMY TROOPS MIGHT BE GREETED WITH LASERS THAT BLINDED THEIR TARGETING DEVICES THEIR TANKS AND PERSONNEL CARRIERS MIGHT STALL AS THEY HIT CLOUDS OF COMBUSTION INHIBITORS AND SHORTCIRCUITING METAL FIBERS THEN THE NONLETHAL WEAPONS DESIGNED TO AFFECT PEOPLE MIGHT BE DEPLOYED THE ANTIPERSONNEL STUFF IS EXTREMELY DESIRABLE BUT EXTREMELY DIFFICULT SAYS RETIRED COL ALEXANDER THE LOS ALAMOS SPECIALIST AMONG THE CONCERNS SOME APPLICATIONS MIGHT VIOLATE TREATIES GOVERNING WAR PRACTICES IN ADDITION NOTES HARVARD BIOCHEMIST MATTHEW MESELSON NONLETHAL TACTICS ESPECIALLY THOSE INVOLVING CHEMICALS COULD ESCALATE INTO LETHAL ONES NOTWITHSTANDING THESE WORRIES ANTIPERSONNEL NONLETHAL DEVICES ARE BEING RESEARCHED INTENSIVELY LAWRENCE LIVERMORE LISTS A HALFDOZEN POTENTIAL WAYS OF TEMPORARILY INCAPACITATING COMBATANTS SUCH AS DAZZLING THEM WITH LASERS PUTTING THEM TO SLEEP WITH CALMATIVE CHEMICALS AND EVEN CONFUSING THEM WITH HOLOGRAPHIC PROJECTIONS IN THE CLOUDS ABOVE THEM PERHAPS IMAGES OF MUSLIM MARTYRS TELLING THEM TO GO HOME SOME RESEARCH IS SPILLING INTO THE CIVILIAN SECTOR TOO THE JUSTICE DEPARTMENT'S RESEARCH ARM IS PIGGYBACKING SEVERAL PROJECTS AND EXPECTS WITHIN A FEW YEARS TO TEST FOAM AND LIGHT IMMOBILIZERS FOR USE AGAINST EVERYTHING FROM ORDINARY DOMESTIC DISTURBANCES TO PRISON RIOTS IN MILITARY USE A BIG ADVANTAGE OF NONLETHAL WEAPONRY COMES AFTER THE SHOOTING AND PULSING IS OVER RECONSTRUCTION WOULD BE FAR EASIER IF SAY ELECTRICAL INFRASTRUCTURE COULD BE RESTORED BY REPLACING A FEW BLOWNOUT SWITCHES AND WIRES SAY THERE'S A WAR IN KOREA SAYS ONE AIR FORCE BOMBER PILOT YOU WANT IT WON BUT THE DAY THE WAR'S OVER YOU WANT TO REUNIFY THEM AND NOT HAVE TO SPEND FIVE YEARS REBUILDING IT THE PENTAGON'S NONLETHAL STUDY GROUP CAME AWAY SO ENTHUSIASTIC THAT IT NOT ONLY RECOMMENDED A MAJOR PUSH INTO NONLETHAL WEAPONS BUT ALSO SUGGESTED THAT PRESIDENT BUSH ANNOUNCE A PUBLIC INITIATIVE AKIN TO PRESIDENT REAGAN'S UNVEILING OF HIS STRATEGIC DEFENSE INITIATIVE OR STAR WARS THAT IDEA DREW FIRE TAKING NONLETHALITY PUBLIC WOULD HAVE THE EFFECT OF SPURRING OUR ADVERSARIES TO LOOK INTO THIS SAYS ONE PENTAGON POLICY MAKER OTHER EXPERTS THOUGHT THAT A PRESIDENTIAL DECLARATION MIGHT MAKE FURTHER DEVELOPMENT PRONE TO POLITICAL MEDDLING SO PENTAGON POLICY MAKERS DECIDED TO INTENSIFY THE NONLETHALITY EFFORT BUT DO IT EVEN MORE SECRETLY THAN PREVIOUSLY THEY ALSO SEEM TO HAVE CUT OUT JANET MORRIS AND RAY CLINE WHO WERE PERCEIVED WITHIN THE PENTAGON AS MEDDLESOME AND UNCONTROLLABLE OUTSIDERS TO MAKE NONLETHALITY EVEN LESS VISIBLE POLICY MAKERS DECREED THAT IT HENCEFORTH WOULD BE REFERRED TO AS DISABLING SYSTEMS TECHNOLOGIES BUT THE NEXT TIME THE US GOES TO WAR IT ALMOST CERTAINLY WILL DEPLOY SOME KINDS OF NONLETHAL WEAPONS IT MAY WELL FACE THEM TOO BY THE END OF THIS CENTURY PROF WOLBARSHT PREDICTS IN A NEW BOOK LASER WEAPONS WILL FIND THEIR WAY INTO ARMIES ALL OVER THE WORLD FROM OPERATIONS CONCEPT FOR DISABLING MEASURES DRAFT US ARMY TRAINING AND DOCTRINE COMMAND SEPTEMBER 1992 LASER WEAPONS RESEMBLING CONVENTIONAL RIFLES LOWENERGY LASER RIFLES WITH POWER PACKS CAN FLASHBLIND PEOPLE AND DISABLE OPTICAL AND INFRARED SYSTEMS USED FOR TARGET ACQUISITION TRACKING NIGHT VISION AND RANGE FINDING INFRASOUND VERY LOW FREQUENCY SOUND GENERATORS COULD BE TUNED TO INCAPACITATE HUMANS CAUSING DISORIENTATION NAUSEA VOMITING OR BOWEL SPASMS THE EFFECT CEASES AS SOON AS THE GENERATOR IS TURNED OFF WITH NO LINGERING PHYSICAL OR ENVIRONMENTAL DAMAGE SUPERCAUSTICS SUPERCAUSTICS CAN BE MILLIONS OF TIMES MORE CAUSTIC THAN HYDROFLUORIC ACID A ROUND THAT DELIVERS JELLIED SUPERACIDS COULD DESTROY THE OPTICS OF HEAVILY ARMORED VEHICLES PENETRATE VISION BLOCKS OR GLASS OR BE EMPLOYED TO SILENTLY DESTROY KEY WEAPONS SYSTEMS OR COMPONENTS ANTITRACTION TECHNOLOGY USING AIRBORNE DELIVERY SYSTEMS OR HUMAN AGENTS WE CAN SPREAD OR SPRAY TEFLONTYPE ENVIRONMENTALLY NEUTRAL LUBRICANTS ON RAILROAD TRACKS GRADES RAMPS RUNWAYS EVEN STAIRS AND EQUIPMENT POTENTIALLY DENYING THEIR USE FOR A SUBSTANTIAL PERIOD BECAUSE SUCH LUBRICANTS ARE COSTLY AND TIMECONSUMING TO REMOVE ROACH MOTELS POLYMER ADHESIVES DELIVERED BY AIR OR SELECTIVELY ON THE GROUND CAN GLUE' EQUIPMENT IN PLACE AND KEEP IT FROM OPERATING COMBUSTION ALTERATION INTERNAL COMBUSTION ENGINES CAN BE DISRUPTED THROUGH SPECIAL CHEMICAL COMPOUNDS THESE CHEMICAL COMPOUNDS WOULD TEMPORARILY CONTAMINATE FUEL OR CHANGE ITS VISCOSITY TO DEGRADE ENGINE FUNCTION COMPUTER VIRUS TECHNOLOGY THIS TECHNOLOGY FOCUSES ON COMPUTER SYSTEMS WHICH CONTROL FIRE SUPPORT SYSTEMS DATA TRANSMISSION FIRE CONTROL SYSTEMS AVIONICS ETC IT INVOLVES THE COVERT INTRUSION OF A COMPUTER VIRUS LOGIC BOMB OR WORM WHICH MAY REMAIN HIDDEN UNTIL THE SYSTEM IS USED OR MEETS SPECIFIC PARAMETERS SEE RELATED LETTERS LETTERS TO THE EDITOR MYOPIA INERTIA AND PETTIFOGGING WSJ FEB 23 1993 9301040025 9302230149 930126 THORNY QUESTION WILL THE PRICKLY PEAR BE KIWI OF THE '90S THE CACTUS AND ITS FRUIT HAVE MANY POSSIBLE USES AS FOOD BUT SOME NASTY DRAWBACKS BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL KINGSVILLE TEXAS AT FIRST GLANCE THE PRICKLY PEAR CACTUS SEEMS TO BE THE FORBIDDEN FRUIT EAT OF IT AT YOUR OWN RISK FOR STARTERS IT GROWS ABOUT AS FAR FROM PARADISE AS POSSIBLE IN PARCHED ROCKY TERRAIN THAT IS HOME TO THE JAVELINA A KIND OF WILD BOAR UNIQUELY CAPABLE OF CHOMPING THOUGH THE PRICKLY PEAR'S VICIOUS SPINES FOR HUMAN BEINGS MAKING THE CACTUS USERFRIENDLY OFTEN TAKES A FLAMETHROWER TO BURN OFF THE SPIKES BUT THE CACTUS PADDLES MAKE FOR GOOD EATING AS DOES THE FRUIT WHICH RESEMBLES A HAND GRENADE AND CONTAINS BIG SEEDS THAT LOOK LIKE LEAD SHOT THIS IS THE NEXT KIWI FRUIT IF WE CAN IMPROVE ITS IMAGE SAYS KAREN CAPLAN A PRODUCE DISTRIBUTOR IN LOS ANGELES THUS SHE SAYS WE DON'T CALL IT PRICKLY' ANYMORE JUST CACTUS PEAR BUT THE PRICKLY PEAR CACTUS IS STILL RATHER OBSCURE YOU CERTAINLY WON'T FIND CACTUS PEAR RECIPES IN THE BETTER HOMES AND GARDENS COOKBOOK THE FARMERS WHO CALL THEMSELVES THE TEXAS PRICKLY PEAR COUNCIL HAVE HAD TO PUT OUT THEIR OWN PAMPHLET WITH INSTRUCTIONS FOR PREPARING CACTUS JELLY AND PRICKLY PEAR PUNCH BUT THE PRICKLY'S PEAR'S POPULARITY IS GROWING IMPORTS FROM MEXICO AND SOUTH AMERICA OF THE FISTSIZE FIVEOUNCE FRUIT WHOSE TASTE HAS BEEN COMPARED TO HONEYDEW MELON ROSE 51 FROM 1987 TO 1989 TO 27 MILLION POUNDS US FARMERS ARE PLANTING HUNDREDS OF ACRES FROM CALIFORNIA TO TEXAS ALTHOUGH THAT HARDLY MAKES IT A STAPLE THE FRUIT OF THE PRICKLY PEAR CACTUS DOES FETCH PRICES COMPARABLE TO KIWI FRUIT ABOUT 2 A POUND IN THOSE FEW SUPERMARKETS THAT STOCK IT PRODUCE BUYERS FOR STORES SAY THEY COULD PROBABLY SELL MORE OF IT IF IT DIDN'T COME IN SO MANY CONFUSING SHADES OF RED PINK YELLOW AND GREEN DEFYING SHOPPERS TO TELL WHETHER IT IS RIPE SAYS DIANNA HOWARD WHO MAKES AND SELLS PRICKLY PEAR JELLY THERE'S A TENDENCY FOR PEOPLE TO BUY PRICKLY PEAR BECAUSE IT SOUNDS LIKE FUN AND THEN LET IT ROT BECAUSE THEY CAN'T FIGURE OUT WHAT TO DO WITH IT THE FRUIT CAN BE EATEN SLICED AND UNADORNED OR IN A RANGE OF PROCESSED PRICKLY PEAR PRODUCTS THAT EVEN INCLUDES A MARGARITA COCKTAIL MIX BUT THE PRICKLY PART IS THE PROBLEM THE INCHLONG SPINES THAT THEY BLAST OFF AT HARVEST TIME READILY DRAW BLOOD BUT A SECOND NEARLY INVISIBLE SET OF STICKERS CALLED GLOCHIDS LURK TO STAB THOSE WHO WOULD GO TOO NEAR THE PRICKLY PEAR IN THE PRODUCE DEPARTMENT GLOCHIDS ARE SHARP AT BOTH ENDS DR PETER FELKER A PLANT PHYSIOLOGIST AT TEXAS A&I UNIVERSITY HERE WHO HAS STUDIED THE PRICKLY PEAR CACTUS UNDER A 100000 FEDERAL GRANT RECOMMENDS REMOVING THEM FROM YOUR SKIN WITH TWEEZERS USE YOUR TEETH AND THEY ARE LIKELY TO STICK IN YOUR TONGUE AND THAT REALLY SMARTS HE SAYS DR FELKER A SLENDER 45YEAROLD FORMER US ARMY AGRICULTURAL ADVISER TO VIETNAMESE RICE FARMERS IN THE MEKONG DELTA SAYS HE GOES THROUGH A PAIR OF GLOVES A WEEK TENDING THE 70 VARIETIES OF PRICKLY PEAR HE HAS GROWING ON FOUR ACRES AT TEXAS A&I GLOVES OF THICK COTTON LEATHER AND ASBESTOS THESE SPINES PUNCH THROUGH ANYTHING HE SAYS BUT DR FELKER IS A FAN WHO SEES CONSIDERABLE POTENTIAL IN THE NETTLESOME DESERT PLANTS THEY WILL GROW ANYWHERE THEY COULD BE PROVIDING FOOD FOR THE HUNGRY IN ARID REGIONS SUCH AS SOMALIA HE SAYS THE PRICKLY PEAR CACTUS WITH ITS SPLIT PERSONALITY SPROUTS BOTH AN EDIBLE FRUIT FROM THE FLOWER AND A NUTRITIOUS VEGETABLE IN ITS PADDLELIKE LEAVES THE FRUIT IS PACKED WITH VITAMIN C AND CALCIUM AND THE CACTUS PADDLE WITH A TASTE NOT UNLIKE BELL PEPPER BUT WITH A SLIGHTLY SLIMY MOUTHFEEL IS GREAT IN SALADS BUT THE CACTUS FRUIT AND VEGETABLE IS DISMISSED AS A MERE NOVELTY BY THE DEPARTMENT OF AGRICULTURE INDEED UNTIL JUST A FEW YEARS AGO THE PRICKLY PEAR CACTUS WAS CONSIDERED SUCH A NUISANCE IN THE US THAT MOST DOMESTIC CACTUS RESEARCH WAS AIMED AT FINDING BETTER WAYS TO ERADICATE IT SAYS ROBERT MICK A TEXAS FARMER WHO RECENTLY PLANTED 15 ACRES OF PRICKLY PEAR NEXT TO HIS 2000 ACRES OF SORGHUM AND COTTON MY GRANDFATHER WORKED TO CLEAR THIS LAND OF CACTUS 80 YEARS AGO AND I WOULD HAVE THOUGHT YOU WERE CRAZY TO SUGGEST PLANTING IT UNTIL I REALIZED THAT PEOPLE TODAY ARE WILLING TO PAY GOOD MONEY FOR IT TIMES CHANGE MARY MAHAFFEY WHO DISTRIBUTES PRODUCE TO FANCY RESTAURANTS IN AUSTIN SAYS SHE CAN'T GET ENOUGH PRICKLY PEAR IT'S A COMER WITH THE HIGHEND CHEFS SHE SAYS BUT MS MAHAFFEY SAYS GROCERYSTORE SHOPPERS ARE STILL PUT OFF BY THE PRICKLY PEAR THIS IS A STRANGELOOKING THING TO EAT BUMPY OUTSIDE EVEN WITH THE SPINES OFF AND THEN THOSE SEEDS PLEASE BUT CACTUS PEARS ARE WORTH THE EFFORT SAYS DIANNA HOWARD WHO PACKED AND SOLD 4000 JARS OF PEAR JELLY LAST YEAR FOR CUSTOMERS AS FAR AWAY AS JAPAN DOUBLING HER SALES FROM 1991 AT 700 FOR A 10OUNCE JAR THE PRODUCT IS SOMETHING OF A LUXURY ITEM THE PRICE COULD COME DOWN IF SALES INCREASED BUT IS PRICKLY PEAR JELLY GOOD ENOUGH FOR THE JM SMUCKER CO MARKET RUMORS ABOUND AMONG CACTUS SUPPLIERS THAT THE JELLY AND JAM GIANT BASED IN ORRVILLE OHIO HAS BEEN SCOUTING AROUND FOR SUPPLIES BEFORE IT INTRODUCES PRICKLY PEAR PRESERVES A SMUCKERS SPOKESMAN DENIES THE COMPANY IS COOKING UP ANY CACTUS CONCOCTIONS BUT ADDS I WOULDN'T TELL YOU IF WE WERE IN ANY EVENT TEXANS AREN'T WAITING FOR BIG BUSINESS TO TAKE THE PLUNGE INTO THE CACTUS PATCH LAURIE HARREL WHO OWNS A DRUGSTORE IN KINGSVILLE IS PEDDLING TRULY TEXAS BRAND CACTUS SALSA YOU CAN TASTE A SAMPLE SHE SAYS PLOPPING SOME ON A CRACKER WITH CREAM CHEESE BUT I'M SOLD OUT AND THERE ARE A DOZEN PEOPLE ON MY WAITING LIST TO WASH SUCH TREATS DOWN YOU MIGHT TRY A PRICKLY PEAR MARGARITA THE INCREASINGLY POPULAR RECIPE FOR THE DRINK CALLS FOR MARINATING THE FRUIT IN TWO OR THREE OUNCES OF TEQUILA FOR THREE DAYS YOU NEED THAT LONG TO TURN THE GOLDENCOLORED LIQUOR JUST THE RIGHT SHADE OF DEEP RED AND TO LET THE FLAVOR DEVELOP SAYS MONICA MARVIN MANAGER OF ZUNI'S A RESTAURANT ON THE RIVERWALK IN SAN ANTONIO SHE SAYS ZUNI'S IS SELLING MORE THAN 1000 OF THE CACTUS DRINKS A WEEK AT 8 EACH ALL OF WHICH SEEMS LIKE QUITE A STRETCH FOR A PLANT CHRISTOPHER COLUMBUS DISCOVERED IN 1492 AND TRIED TO PASS OFF IN SPAIN AS EVIDENCE THAT HE HAD FOUND INDIA HE CALLED PRICKLY PEARS INDIAN FIGS AND THEY'RE STILL CALLED THAT IN ITALY SEE RELATED LETTER LETTERS TO THE EDITOR PRICKLY IN PARADISE WSJ FEB 23 1993 9301260178 9302230001 930125 CLOSING COSTS NUCLEAR UTILITIES FACE IMMENSE EXPENSES IN DISMANTLING PLANTS CUSTOMERS AND SHAREHOLDERS FACE YEARS OF FIGHTING OVER BEARING THE BURDEN RESPIRATORS AND RUBBER BOOTS BY ROBERT JOHNSON AND ANN DE ROUFFIGNAC STAFF REPORTERS OF THE WALL STREET JOURNAL FORT ST VRAIN COLO NUCLEAR POWER HAS CAUSED UTILITIES SO MANY HEADACHES OVER THE YEARS THAT SOME ARE READY TO JUST WALK AWAY FROM IT BUT THEY CAN'T EVEN DO THAT RETIRING OLD PLANTS IS TURNING OUT TO BE SUCH A CHALLENGE THAT THE VISITORS' CENTER AT A PLANT HERE WHICH ONCE TOLD SCHOOLCHILDREN ABOUT THE MARVELS OF ATOMIC POWER NOW ENTERTAINS ENGINEERS WHO COME FROM AS FAR AWAY AS JAPAN TO STUDY THE HUGELY COSTLY AND COMPLEX PROCESS OF DISMANTLEMENT FORT ST VRAIN IS THE FIRST FULLY OPERATIONAL COMMERCIAL NUCLEAR PLANT TO BE TAKEN APART PIECE BY PIECE ITS OWNER PUBLIC SERVICE CO OF COLORADO IS AMONG THE GROWING RANKS OF UTILITY COMPANIES NOW FACING A HARSH REALITY NOT ONLY ARE SOME NUCLEAR PLANTS TOO EXPENSIVE TO RUN BUT IT MAY COST MORE TO TAKE THEM APART IN TODAY'S DOLLARS THAN IT COST TO BUILD THEM IN THE FIRST PLACE IT IS A PAINFUL LESSON PAINFUL FOR THE COMPANIES FOR THEIR SHAREHOLDERS AND FOR THEIR RATE PAYERS NUCLEAR PLANT DISMANTLING SAYS JAMES GREENE A UTILITIES CONSULTANT AT THE ACCOUNTING FIRM OF ARTHUR ANDERSEN & CO IS THE BIG BOGY OUT THERE WAITING THE FORT ST VRAIN PLANT HAS BECOME A SYMBOL OF THE PROBLEM THERE WERE NO ACCIDENTS HERE NO RADIATION LEAKS NO ALARMS ABOUT MELTDOWNS THERE WAS JUST A LONG LIST OF TEMPORARY CLOSINGS AND COSTLY REPAIRS THE COMPANY FIGURES THE PLANT ACTUALLY WAS IN OPERATION ONLY ABOUT 15 OF THE TIME MARK STUTZ A SPOKESMAN FOR THE UTILITY SAYS SIMPLY OUR NUCLEAR PLANT DIDN'T WORK FORT ST VRAIN WAS THE FIRST AND ONLY HELIUMCOOLED COMMERCIAL REACTOR IN THE US THE REST ARE WATERCOOLED INCLUDING THE OTHER 14 THAT HAVE CLOSED EARLIER THAN PLANNED PUBLIC SERVICE OF COLORADO POINTS OUT THAT THE LAST STRAW THAT CAUSED IT TO CLOSE FORT ST VRAIN WAS A PROBLEM COMMON IN MANY WATERCOOLED PLANTS CRACKS IN THE REACTOR'S STEAM TUBES THE RELATIVELY SMALL 330MEGAWATT FORT ST VRAIN PLANT COST 224 MILLION TO BUILD IN THE 1970S TAKING IT APART SAFELY WILL COST 333 MILLION UNDER AN AGREEMENT WITH STATE REGULATORS THE UTILITY'S CUSTOMERS WILL STILL BE HELPING TO PAY FOR THE PLANT'S DEMISE IN THE YEAR 2005 LARGERTHANEXPECTED COSTS FROM EARLY DISMANTLING ALSO LOOM FOR MANY OF THE 110 REMAINING US NUCLEAR PLANTS IN THE US THREATENING SOME UTILITIES WITH HUGE BILLS FOR WHICH THEY ARE UTTERLY UNPREPARED THE NUCLEAR REGULATORY COMMISSION REQUIRES UTILITIES GRADUALLY TO PUT ASIDE AS MUCH AS 135 MILLION FOR EACH OF THEIR NUCLEAR PLANTS TO COVER THE COSTS OF DISMANTLING DECOMMISSIONING IN GOVERNMENT PARLANCE BUT NRC OFFICIALS ACKNOWLEDGE THAT THIS SUM IS FAR SHORT OF THE REAL AMOUNT NEEDED THEY SAY THEY WILL SOON ISSUE SHARPLY HIGHER ESTIMATES OF HOW MUCH UTILITIES SHOULD PUT AWAY FOR THE END OF THE ATOMIC ROAD A RECENT STANFORD UNIVERSITY STUDY SUGGESTS THAT UTILITIES SHOULD ALREADY HAVE ACCUMULATED A TOTAL OF 33 BILLION TO HAVE ENOUGH FOR EVENTUAL PLANT DISMANTLING BUT THE NRC ESTIMATES THAT ONLY 4 BILLION HAS BEEN STASHED SO FAR WHEN PORTLAND GENERAL ELECTRIC CO IN OREGON ABRUPTLY ANNOUNCED PLANS EARLIER THIS MONTH TO CLOSE ITS 675OWNED TROJAN NUCLEAR PLANT THE UTILITY'S COFFERS CONTAINED ONLY 8 OF THE 488 MILLION ESTIMATED TO BE ITS SHARE OF DISMANTLING COSTS IT WILL TRY TO WRING THE REST OF ITS SHARE FROM CONSUMERS IN A REGULATORY BATTLE THAT MAY TAKE YEARS THE WORST NEWS IS YET TO COME SOME UTILITIES ARE ALREADY RAISING ESTIMATES OF ANTICIPATED DISMANTLING COSTS FAR HIGHER THAN THOSE FORECAST BY THE NRC FOR EXAMPLE AMERICAN ELECTRIC POWER CO BASED IN COLUMBUS OHIO RECENTLY INCREASED THE DISMANTLING FORECAST FOR ITS TWO NUCLEAR UNITS WHOSE COMBINED 2200MEGAWATT CAPACITY IS SEVEN TIMES THAT OF FORT ST VRAIN TO A SUM IN THE RANGE OF 588 MILLION TO 11 BILLION COMPARED WITH A 1989 ESTIMATE OF 340 MILLION SIMILARLY NEBRASKA PUBLIC POWER DISTRICT BASED IN COLUMBUS NEB MORE THAN TRIPLED THE DISMANTLINGCOST FORECAST FOR ITS 836MEGAWATT NUCLEAR PLANT LAST YEAR TO 115 BILLION MOREOVER THE DAY OF RECKONING IS FAR CLOSER FOR MANY UTILITIES THAN THEY IMAGINED WHEN THEY BUILT THEIR PLANTS NUCLEAR FACILITIES ARE LICENSED BY THE NRC TO OPERATE FOR A SUPPOSED 40YEAR LIFE CYCLE BUT THE 15 PLANTS CLOSED SO FAR WERE OPEN FOR AN AVERAGE OF ONLY 127 YEARS FORT ST VRAIN RAN FOR 10 AND WITH THE AVERAGE PERKILOWATT COST OF RUNNING A NUCLEAR PLANT NOW EDGING HIGHER THAN THE COST OF A COALFIRED PLANT DEPARTMENT OF ENERGY OFFICIALS SAY PRIVATELY THAT 25 OF THE REMAINING REACTORS MAY BE CLOSED IN THE NEXT DECADE FOR ECONOMIC REASONS THAT MEANS UTILITIES SUCH AS PUBLIC SERVICE OF COLORADO WHICH PLANNED A DELIBERATE PACE OF SAVING DECOMMISSIONING FUNDS OVER FOUR DECADES ARE BEING CAUGHT SHORT WALL STREET ANALYSTS SAY THE UTILITIES INDUSTRY SHOULD HAVE CONFRONTED THE ECONOMIC REALITY OF DECOMMISSIONING LONG AGO TO BE LICENSED TO USE NUCLEAR POWER UTILITIES HAD TO FILE PLANS SHOWING HOW THEY WOULD RETURN AN OBSOLETE POWERPLANT SITE TO PRISTINE CONDITION BUT THEY DIDN'T HAVE TO CALCULATE THE EXPECTED COST OF DOING SO AND FEWER THAN A DOZEN UTILITIES HAVE MADE SUCH ESTIMATES PUBLIC THE FINANCIAL FACTS OF NUCLEAR DECOMMISSIONING BY UTILITIES WILL USHER IN AN ERA OF LENGTHY REGULATORY BATTLES OVER HOW MUCH OF THE COSTS CAN BE PASSED ALONG TO CUSTOMERS INDUSTRY OFFICIALS PREDICT BUT THE UTILITIES THEMSELVES WILL ALMOST CERTAINLY HAVE TO SHOULDER BIG CHUNKS OF THE COST THUS ERODING THEIR PROFIT MARGINS RAISING THEIR DEBT TOTALS AND MAKING IT MORE EXPENSIVE FOR THEM TO BORROW I JUST HOPE I'M RETIRED FROM RATING UTILITY BONDS WHEN MOST OF THIS HAPPENS SAYS DANIEL SCOTTO A UTILITYBOND ANALYST AT DONALDSON LUFKIN & JENRETTE TEARING AWAY THE LAYERS OF DECOMMISSIONING PROBLEMS IS LIKE PEELING AN ONION YOUR EYES TEAR MORE AND MORE IN THE SIX YEARS SINCE PUBLIC SERVICE OF COLORADO'S FORT ST VRAIN OPERATION WENT OFFICIALLY SOUR WITH A 200 MILLION CHARGE AGAINST EARNINGS THE UTILITY'S NET INCOME HAS PLUNGED TO 138 OF CAPITAL FROM 193 DESPITE A LESSENED CORPORATE TAX RATE AND ITS DEBT RATING HAS BEEN REDUCED FOUR TIMES BY STANDARD & POOR'S CORP FOR NOW A NUMBER OF UTILITIES CAUGHT IN SIMILAR SQUEEZES ARE MOTHBALLING PLANTS UNTIL THEY CAN ACCUMULATE DISMANTLING FUNDS OR DISCOVER LOWERCOST WAYS TO DISPOSE OF THE FACILITIES THE NRC ALLOWS UTILITIES TO WAIT UP TO 60 YEARS BEFORE THEY MUST DISMANTLE A PLANT THAT HAS BEEN TAKEN OUT OF SERVICE BUT MAINTAINING INSPECTING AND SECURING SUCH A FACILITY CAN STILL COST UP TO 15 MILLION A YEAR SAYS RON BINZ DIRECTOR OF COLORADO'S OFFICE OF CONSUMER COUNSEL YOU'LL NEED GENERATIONS OF DOBERMAN PINSCHERS SUCH PROBLEMS WEREN'T FORESEEN IN 1965 WHEN PUBLIC SERVICE OF COLORADO HIRED SAN DIEGOBASED GENERAL ATOMICS TO DESIGN THE FORT ST VRAIN PLANT AT THIS FORMER FURTRADING POST 35 MILES NORTH OF DENVER THIS WAS STILL THE AGE OF INNOCENCE FOR NUCLEARFUELED ELECTRICITY IT HAD BEEN ONLY 11 YEARS SINCE LEWIS STRAUSS CHAIRMAN OF THE ATOMIC ENERGY COMMISSION ISSUED HIS FAMOUS PREDICTION THAT ELECTRICITY WOULD BECOME TOO CHEAP TO METER AND ONLY EIGHT YEARS SINCE PRESIDENT EISENHOWER HAD WAVED A MAKESHIFT MAGIC WAND TO OPEN THE NATION'S FIRST COMMERCIAL REACTOR NEAR PITTSBURGH WALT DISNEY PUBLISHED A NUCLEAR PRIMER CALLED OUR FRIEND THE ATOM UTILITY INDUSTRY BROCHURES DEPICTED NUCLEAR POWER MAKING THE ARCTIC BALMY ENOUGH FOR A TOURIST TO SUNBATHE ON AN ICEBERG SIPPING A TROPICAL DRINK WE ALL REALLY BELIEVED THAT THE NUCLEAR ERA WOULD BE ONE OF DECLINING ELECTRICITY COSTS SAYS DUANE CHAPMAN AN ECONOMIST AT CORNELL UNIVERSITY AND A FORMER CONSULTANT TO THE DEPARTMENT OF ENERGY NEVER IN MY WILDEST DREAMS DID I THINK IT WOULD BE THIS EXPENSIVE WHEN CONSTRUCTION BEGAN ON FORT ST VRAIN IN 1968 MANY ENVIRONMENTALISTS WERE STILL PROCLAIMING NUCLEAR POWER THE ANSWER TO FOSSILFUEL POLLUTION THE NUCLEAR INDUSTRY GOT ONE OF ITS BIGGEST BOOSTS FROM THE FEDERAL CLEAN AIR ACT OF 1970 WHICH TOUGHENED STANDARDS FOR COAL PLANTS BUT BY THE TIME THE PLANT OPENED IN 1979 CONCERNS ABOUT SAFETY AND WASTE DISPOSAL HAD LONG SINCE REPLACED THE ROSY SCENARIOS AT FORT ST VRAIN THOSE CONCERNS TRANSLATED INTO MOUNTING COSTS PUBLIC SERVICE OF COLORADO HAD ORIGINALLY PLANNED TO OPERATE THE PLANT WITH 54 WORKERS BUT THE NUMBER SWELLED TO 400 EVEN BEFORE IT OPENED THEN THE WORK FORCE BALLOONED AGAIN TO 837 UNDER THE PUBLIC SCRUTINY THAT DEVELOPED AFTER THE THREE MILE ISLAND NUCLEAR ACCIDENT MEANWHILE THE PLANT WAS GIVING ITS CRITICS PLENTY OF AMMUNITION A SPOKESMAN FOR GENERAL ATOMICS SAYS THAT THE PLANT WAS SAFE UNFORTUNATELY THERE WERE SOME BUGS THE PLANT DIDN'T CONSISTENTLY PRODUCE ELECTRICITY AT A COST THAT WOULD PROVIDE THE UTILITY A PROFIT UNDER CONSUMERCOST CEILINGS SET BY STATE REGULATORS AN ECONOMIC DISASTER CONCLUDES COLORADO'S CONSUMER COUNSEL MR BINZ WE WERE ALWAYS UNDER THE GUN FROM CUSTOMERS ABOUT THIS PLANT'S COSTS SAYS DON WAREMBOURG THE CHIEF ENGINEER DESCENDANTS OF THE PLANT'S NAMESAKE 1830S PIONEER MARCELLIN ST VRAIN ASKED THAT THE PLANT BE CALLED SOMETHING ELSE TO SAVE THE FAMILY FROM EMBARRASSMENT AN EARLY PAMPHLET ABOUT FORT ST VRAIN PUT MAINTENANCE REQUIREMENTS AT LITTLE MORE THAN A TWOWEEK REFUELING STINT ANNUALLY IN REALITY THE PLANT SAT USELESS FOR MONTHS AT A TIME IN 1986 THE PUBLIC SERVICE COMMISSION OF COLORADO STOPPED THE UTILITY FROM CHARGING FOR FORT ST VRAIN'S POWER UNTIL IT GOT COSTS UNDER CONTROL THREE YEARS LATER FACED WITH A FIVEYEAR REPAIR JOB ON THE PLANT'S COOLING SYSTEM THE UTILITY GAVE UP AND CLOSED THE PLACE COMPANY OFFICIALS MULLED THEIR OPTION TO DELAY DISMANTLING FOR 60 YEARS BUT ULTIMATELY DECIDED TO START TAKING THE PLANT APART LAST AUGUST WE JUST COULDN'T SEE GUARDING THE PLACE FOR HALF A CENTURY SAYS MR WAREMBOURG WHY IS DISMANTLING A PLANT SO EXPENSIVE ENGINEERS CITE THE EXTENSIVE SAFETY TRAINING REQUIRED THE NEED TO ROTATE WORKERS TO LIMIT RADIATION EXPOSURE AND THE LENGTHY PLANNING OF EVERY MOVE IN CONTAMINATED AREAS THOMAS LAGUARDIA AN ENGINEER WHO CONSULTS WITH UTILITIES ABOUT DISMANTLING PLANTS SAYS YOU NEED UP TO FOUR HOURS TO GET READY TO DO SOME JOBS THAT WOULD BE SIMPLE IN A FOSSILFUEL PLANT SOMETIMES YOU'LL HAVE TO BUILD MOCKUP REACTORS TO PRACTICE SO YOU DON'T WASTE TIME ON THE REAL THING NUCLEAR DISMANTLING IS MADE TOUGHER BY THE PLANT DESIGNS WHICH CRAM ALL THE SENSITIVE MATERIAL INTO THE SMALLEST POSSIBLE SPACES TO LIMIT RADIOACTIVE CONTAMINATION THIS IS HOT SWEATY WORK BY PEOPLE WEARING PROTECTIVE SUITS RESPIRATORS AND RUBBER BOOTS SAYS MR LAGUARDIA PRODUCTIVITY WILL GO WAY DOWN ON THESE JOBS AT FORT ST VRAIN THE WORKERS ARE FINDING THAT NOTHING IS SIMPLE JUST GETTING ACCESS TO SOME OF THE RADIOACTIVE AREAS OF THE PLANT MEANS SLEDGEHAMMERING ASIDE TONS OF STEEL PIPES AND CEMENT WALLS THE HUGE AMOUNT OF WATER USED TO COOL OTHER NUCLEAR REACTORS WASN'T SUPPOSED TO BE A PROBLEM AT FORT ST VRAIN'S 1400DEGREE CORE BECAUSE THIS PLANT USES HELIUM TO CONTROL TEMPERATURES BUT ENGINEERS HAVE DISCOVERED THEY WILL HAVE TO POUR A MILLION GALLONS OF WATER INTO THE REACTOR VESSEL DURING DISMANTLING AS A RADIATION SHIELD AND ALL THAT WATER MUST BE CHEMICALLY TREATED TO REMOVE RADIOACTIVE RESINS UNTOLD ADDITIONAL AMOUNTS OF WATER MUST BE USED FOR WASHING WORKERS' PROTECTIVE CLOTHING A QUARANTINED LAUNDRY HAS BEEN SET UP TO WASH UP TO 250 UNIFORMS A DAY FOR THE THREE YEARS OR SO THE PROJECT IS EXPECTED TO TAKE YOU WASH ALL THOSE SUITS AND CLEAN IONS FROM THAT WATER THEN YOU CUT UP THE WASHING MACHINE AND THE DRYER AND PACK THEM INSIDE STEEL BOXES YOU CHOP UP THE FLOOR UNDERNEATH WHERE THE WASHER AND DRYER WERE SAYS JAMES KRAUSE A WESTINGHOUSE ELECTRIC CORP ENGINEER CONSULTING AT FORT ST VRAIN THE LAST THING IN THE BOX IS THE GEIGER COUNTER YOU USED TO TEST EVERYTHING AND YOU BURY THAT TOO PUBLIC SERVICE OF COLORADO FIGURES IT WILL TAKE 39 MONTHS FROM START TO FINISH TO COMPLETE THE DISMANTLING OF THE FORT ST VRAIN NUCLEAR PLANT BUT IT PLANS TO LEAVE THE OUTSIDE WALLS STANDING AND EVENTUALLY REBUILD THE INNARDS TO BURN NATURAL GAS YOU CAN STILL BRING YOUR CHILDREN TO VISIT SAYS CLEGG CRAWFORD VICE PRESIDENT OF ELECTRIC PRODUCTION WE WON'T HAVE A NUCLEAR REACTOR OF COURSE BUT WE'LL STILL BE MAKING ELECTRICITY SEE RELATED LETTER LETTERS TO THE EDITOR COSTS FOR DISMANTLING NUCLEAR POWER PLANTS WSJ FEB 23 1993 9301250007 9302220188 930222 HARLEYDAVIDSON NET DOUBLED IN 4TH PERIOD AS SALES CLIMBED 31 MILWAUKEE HARLEYDAVIDSON INC'S FOURTHQUARTER EARNINGS DOUBLED ON A 31 SALES RISE AS THE COMPANY SAW CONTINUED POWERFUL DEMAND FOR ITS HEAVY MOTORCYCLES AND A TURNAROUND AT ITS RECREATIONALVEHICLES SEGMENT THE MOTORCYCLE MAKER REPORTED NET OF 145 MILLION OR 40 CENTS A SHARE UP FROM 72 MILLION OR 20 CENTS A SHARE A YEAR EARLIER SALES CLIMBED TO 3122 MILLION FROM 2377 MILLION HARLEY'S TRANSPORTATIONVEHICLES DIVISION WHICH INCLUDES THE RECREATIONALVEHICLES OPERATION POSTED OPERATING PROFIT OF ABOUT 700000 SALES ROSE 44 TO 736 MILLION THE RESULTS REFLECTED ENTHUSIASTIC MARKET RESPONSE TO ITS RECREATIONALVEHICLE OFFERINGS THE COMPANY SAID AND MARKED A BIG IMPROVEMENT FROM THE UNIT'S YEAREARLIER OPERATING LOSS OF 69 MILLION BUT THE COMPANY THREW IN A CAUTIONARY NOTE THE RECREATIONALVEHICLE INDUSTRY'S MOMENTUM OF 1992 DOESN'T APPEAR TO HAVE CARRIED OVER TO THE FIRST QUARTER OF 1993 THE COMPANY SAID HARLEY SAID ITS RECREATIONVEHICLE DEALERS ARE REPORTING A SLOWDOWN IN SHOWROOM TRAFFIC A TREND HARLEY IS WATCHING VERY CLOSELY AS WE ENTER THE KEY MONTHS OF OUR SELLING SEASON THE COMPANY'S MUCHLARGER MOTORCYCLE DIVISION HAS NO SUCH CONCERNS AS DEMAND FROM THE U S AND ABROAD CONTINUED TO OUTPACE HARLEY'S PRODUCTION CAPACITY SALES ROSE 28 TO 2386 MILLION BUT PROFIT MARGINS WERE THINNED FROM THE YEAR EARLIER BECAUSE OF A 5 MILLION CHARGE TO COVER THE COST OF CERTAIN VEHICLE RECALLS OPERATING PROFIT FOR THE MOTORCYCLE AND RELATED PRODUCTS GROUP STILL ROSE HOWEVER TO 259 MILLION FROM 219 MILLION IN THE 12 MONTHS HARLEY'S NET ROSE 45 TO 538 MILLION OR 150 A SHARE FROM 37 MILLION OR 104 A SHARE SALES WERE 111 BILLION TOPPING 1 BILLION FOR THE FIRST TIME IN THE COMPANY'S HISTORY AND UP 18 FROM THE PRIOR YEAR'S 9399 MILLION IN NEW YORK STOCK EXCHANGE TRADING FRIDAY HARLEYDAVIDSON SLIPPED 1375 TO 32875 9302220187 930222 TECHNOLOGY & MEDICINE IBM GIVES DATA ON TWO BABY BLUES' COMING CLOSER TO GOAL OF REORGANIZING BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP TOOK A STEP CLOSER TO ITS GOAL OF BECOMING A FEDERATION OF INDEPENDENT COMPANIES REPORTING RESULTS FOR TWO OF ITS DOZEN NEW BABY BLUE OPERATIONS FOR THE FIRST TIME THE INFORMATION IS CONTAINED IN GALLEYS OF A PORTION OF IBM'S 1992 ANNUAL REPORT MAILED TO FINANCIAL ANALYSTS LATE LAST WEEK AN IBM SPOKESMAN SAID THE COMPANY'S FULL ANNUAL REPORT SHOULD BE AVAILABLE IN ABOUT A WEEK IBM ALSO GAVE A BETTER INDICATION OF ITS 1992 PERFORMANCE IN VARIOUS GEOGRAPHIC AREAS SHOWING THAT WEAKNESS IN EUROPE ACCOUNTED FOR THE COMPANY'S SLIGHT REVENUE DROP LAST YEAR IBM'S US REVENUE WAS ESSENTIALLY FLAT WHILE ASIAN REVENUE ROSE ABOUT 5 AND IBM GAVE A MORE DETAILED BREAKDOWN OF ITS SALES FIGURES SHOWING THAT HIGHEND AND MIDRANGE HARDWARE REVENUE DROPPED 69 LAST YEAR TO 1392 BILLION FROM 1495 BILLION IBM SAID THE DROP WAS MOSTLY DUE TO FALLING SALES OF ITS BIG MAINFRAME COMPUTERS MEANWHILE PERSONAL SYSTEMS REVENUE DECLINED 73 TO 789 BILLION FROM 851 BILLION MAINLY BECAUSE OF PERSONALCOMPUTER PRICE WARS DISK DRIVES AND OTHER DATASTORAGE DEVICES SUFFERED EVEN MORE FALLING NEARLY 13 TO 626 BILLION FROM 718 BILLION BUT SERVICES ROARED AHEAD FOR THE SECOND YEAR RISING 32 TO 735 BILLION FROM 558 BILLION AS PREVIOUSLY REPORTED IBM'S TOTAL 1992 REVENUE DROPPED TO 6452 BILLION FROM 6477 BILLION IBM'S DISCLOSURE OF THE RESULTS OF BOTH BABY BLUE OPERATIONS HAD BEEN EXPECTED ONE OF THE UNITS IBM'S ADSTAR DISKDRIVE BUSINESS IS FURTHEST ALONG IN SEPARATING ITS FINANCES FROM THE MOTHER COMPANY AS WITH OTHER BABY BLUES IBM WANTS TO DISENTANGLE ADSTAR SO IT IS FREE TO CHANGE THE UNIT'S OWNERSHIP STRUCTURE PERHAPS BY SELLING A CHUNK FOR EXAMPLE OR BY OFFERING A SPECIAL STOCK PEGGED ONLY TO ADSTAR'S RESULTS IBM RECENTLY HIRED MORGAN STANLEY & CO AND BOSTON CONSULTING GROUP TO FIGURE OUT WAYS TO SPEED UP THIS PROCESS FOR ADSTAR AND ANOTHER UNIT IBM PERSONAL COMPUTER CO ACCORDING TO FEDERAL REGULATIONS IBM MUST PROVIDE THREE YEARS OF AUDITED RESULTS FOR ANY UNIT BEFORE LAUNCHING A PUBLIC OFFERING THE 1992 REPORT IS ADSTAR'S FIRST THE PC BUSINESS HAS YET TO DISCLOSE ANY RESULTS WITH A RETURN ON ASSETS OF 6 WELL BELOW IBM'S LONGTERM TARGETS ADSTAR ISN'T A STELLAR PERFORMER FOR 1992 THE UNIT REPORTED A LOSS OF 265 MILLION ON REVENUE OF 611 BILLION BEFORE SWALLOWING ITS SHARE OF IBM'S MASSIVE 1992 RESTRUCTURING CHARGES IBM SAID ADSTAR HAD NET INCOME OF 247 MILLION ADSTAR SELLS MOST OF ITS PRODUCTS TO OTHER IBM UNITS BUT IBM SAID ABOUT 442 MILLION OF ADSTAR'S 1992 REVENUE CAME FROM OUTSIDE THE COMPANY A SIGNIFICANT BITE OF THE 12 BILLION IBM GENERATED LAST YEAR BY OFFERING ITS TECHNOLOGY FOR RESALE BY OTHER COMPANIES INTEGRATED SYSTEMS SOLUTIONS CORP THE OTHER NEW BABY BLUE TO REPORT 1992 RESULTS EKED OUT A PROFIT IN LINE WITH PREDICTIONS MADE BY ITS PRESIDENT LAST MONTH THE UNIT IS IBM'S MAIN VEHICLE FOR OFFERING COMPREHENSIVE DATAPROCESSING SERVICES TO BIG CORPORATE CUSTOMERS AND IS ONE OF BIG BLUE'S MAIN HOPES FOR THE FUTURE INCLUDING THE RESULTS OF ADVANTIS IBM'S COMMUNICATIONSSERVICES JOINT VENTURE WITH SEARS ROEBUCK & CO INTEGRATED SYSTEMS POSTED A 1992 PROFIT OF 30 MILLION ON REVENUE OF 184 BILLION LAST YEAR WAS INTEGRATED'S FIRST FULL YEAR OF OPERATION IBM SAID THE UNIT'S 1992 REVENUE INCLUDED 118 BILLION IN SALES TO THE REST OF IBM A 64 SHARE OF THE TOTAL MUCH HIGHER THAN THE ROUGHLY 5050 SPLIT THE COMPANY HAD PREVIOUSLY INDICATED AS FOR THE REMAINING BABY BLUES IBM SAID NEW MANAGEMENT SYSTEMS ARE IN PLACE AND THE COMPANY INTENDS TO PUBLISH INFORMATION RELATIVE TO THESE BUSINESSES OR GROUPINGS OF THESE BUSINESSES IN THE 1993 ANNUAL REPORT 9302220186 930222 LEISURE & ARTS THIRST FOR REGIONAL WINES BY BARBARA ENSRUD AT A TIME WHEN THE WINE BUSINESS IS CONTRACTING IN SALES AND CONSUMPTION IF NOT PRODUCTION THE BRIGHT SPOTS ARE WORTH LOOKING AT THE NEWS COMES FROM SURPRISING QUARTERS WHEN WE THINK OF THE WINE INDUSTRY IN THIS COUNTRY WE THINK FIRST OF CALIFORNIA AND IMPORTS WHICH CERTAINLY CONSTITUTE BY FAR THE LARGEST SEGMENTS OF THE WINE MARKET BUT SOMETHING IS HAPPENING IN THE HINTERLANDS SALES FIGURES FOR REGIONAL WINES ARE BUCKING THE TREND BY RISING INSTEAD OF FALLING LOCAL SUPPORT FOR REGIONAL WINERIES IS THE REASON VIRGINIA REPORTS THAT SALES OF ITS WINE IN 1991 WERE UP 29 OVER 1990 THE 1992 FIGURES ARE ALREADY UP AN ADDITIONAL 20 BASED ON REPORTS THROUGH JULY SALES ARE EASY TO TRACK IN VIRGINIA WHERE THE STATE'S 40 WINERIES PAY 2 OF THE PRICE OF EACH BOTTLE IN EXCISE TAXES WHICH ARE THEN USED TO PROMOTE VIRGINIA WINES FIGURES ARE HARDER TO COME BY IN TEXAS WHERE ALL WINE SALES ARE LUMPED TOGETHER THE MARKET OVERALL IN TEXAS IS DOWN SLIGHTLY BUT STEVE MORSE AN ECONOMIST AT THE TEXAS WINE MARKETING RESEARCH INSTITUTE AT TEXAS TECH UNIVERSITY IN LUBBOCK SAYS TEXAS WINES ARE INCREASING THEIR MARKET SHARE WE WERE UP 19 IN 1991 1990 WAS UP 15 IT DOESN'T SEEM LIKE MUCH PERHAPS BUT THOSE FIGURES WILL LIKELY INCREASE FURTHER THIS YEAR TEXAS HAD TWO GOOD VINTAGES IN 1990 AND 1991 PRODUCING SUCH STANDOUTS AS CAPROCK'S 1991 SAUVIGNON BLANC FALL CREEK'S 1990 CABERNET AND A 1991 CHENIN BLANC FROM LLANO ESTACADO WHEN THE NORTH AMERICAN FREE TRADE AGREEMENT WAS RECENTLY SIGNED BY THE US CANADA AND MEXICO IN SAN ANTONIO THE OFFICIAL TOASTS WERE DRUNK WITH MOYER BRUT A TEXAS SPARKLING WINE TWENTY YEARS AGO THE YOUNG WINE INDUSTRIES OF TEXAS AND VIRGINIA WERE BARELY STIRRING THEIR FIRST DECADE WAS EXCITING AS NEW VINEYARDS CAME INTO BEARING AND NEW WINERIES WERE BONDED THE FIRST WINES HOWEVER DID NOT CREATE MUCH EXCITEMENT OR INTEREST FEW WERE WORTH DRINKING BACK THEN EXCEPT OUT OF CURIOSITY AND SCATTERED EVIDENCE OF POTENTIAL THAT KEPT ALIVE THE EFFORTS WHAT A DIFFERENCE A DECADE MAKES VIRGINIA IS PRODUCING WINES TODAY THAT COULD GRACE ANY TABLE IN THE COUNTRY CHARDONNAY CABERNET SAUVIGNON AND MERLOT SAUVIGNON BLANC DRY RIESLING EVEN PINOT GRIGIO THAT OF COURSE IS THE MAIN REASON VIRGINIANS ARE DRINKING MORE OF THEIR OWN WINES THEY ARE GOOD AND GETTING BETTER WINE SHOPS AND RESTAURANTS INCREASINGLY STOCK THEM FOR THE SAME REASON THERE IS MORE TO THIS BOOM HOWEVER THAN HIGHER QUALITY LOTS OF GOOD WINE IS AVAILABLE THAT DOESN'T SELL SIMPLY BECAUSE PEOPLE DON'T KNOW ABOUT IT VIRGINIA WINERIES ARE DOING A GREAT JOB OF BRINGING WINE TO THE PEOPLE SPONSORING SEVERAL FAMILYORIENTED FESTIVALS THROUGHOUT THE YEAR THAT ALLOW THE PUBLIC TO TASTE THEIR WINES VINTAGE VIRGINIA THE STATE'S LARGEST FESTIVAL IS SPONSORED EACH JUNE BY THE VIRGINIA WINERIES ASSOCIATION IT DREW A RECORD 25000 PEOPLE LAST YEAR TO THE GREENS OF GREAT MEADOW THE STEEPLECHASE RACEWAY NEAR MIDDLEBURG WHOLE FAMILIES CAME WITH KIDS IN STROLLERS AND BABES IN ARMS SPREADING BLANKETS ON THE THICK GRASS TO PICNIC OR LISTEN TO MUSIC JAZZ COUNTRY BLUEGRASS DEPENDING ON WHERE YOU SETTLED IN COLORFUL PAVILIONS SCATTERED AROUND THE 300ACRE SITE 23 OF VIRGINIA'S 40 WINERIES OFFERED A TASTE OF THEIR WARES ADMISSION INCLUDED A SOUVENIR WINE GLASS FOR TASTING IN ADDITION TO AMPLE PROVENDER FROM FAST FOOD AND DRINK TO SPECIALTIES PREPARED BY SOME OF VIRGINIA'S BEST RESTAURANTS THERE WERE CRAFT VENDORS GAMES FOR CHILDREN COOKING DEMONSTRATIONS BALLOON AND PONY RIDES AND A GRAPE STOMP SIMILAR SCENES ARE COMMON NOW IN MANY PARTS OF THE COUNTRY THOUGH TEXAS HAS ONLY 26 WINERIES IT CELEBRATES THEM ON A TEXAN SCALE IF YOU FLEW THROUGH DALLASFORT WORTH AIRPORT IN MIDSEPTEMBER YOU MIGHT HAVE KILLED TIME BETWEEN PLANES BY STROLLING OVER TO THE ANNUAL GRAPEFEST IN GRAPEVINE THE AIRPORT AMAZINGLY IS WITHIN THE CITY LIMITS OF THE PRAIRIE TOWN OF GRAPEVINE THE GRAPEFEST A FUNDRAISER FOR THE GRAPEVINE HERITAGE ASSOCIATION DREW 55000 PEOPLE LAST YEAR NOT ONLY FROM DALLAS AND FORT WORTH BUT FROM 17 STATES AND FIVE COUNTRIES THIS FESTIVAL IS MORE LIKE A COUNTY FAIR WITH RIDES AND GAMES AND A FRIDAYNIGHT DANCE WINE FLOWS BY THE OUNCE HERE BUT NONE CAN BE SOLD THE CROWD SEEMED MORE SOPHISTICATED THAN THOSE OF YEARS PAST ACCORDING TO GRAPEFEST'S SUE JOHNSON WINNERS OF THE CONSUMER FAVORITES AWARDS WERE WINES LIKE LLANO'S CHENIN BLANC OFFDRY AND SCHOPPAUL HILL'S CRIMSON A RED BLEND INSTEAD OF THE SWEET DESSERT WINES THAT ALWAYS WON IN PREVIOUS YEARS SHE EXPLAINS THE SUCCESS OF SUCH FESTIVALS INDICATES THE GROWING ACCEPTANCE OF WINE IN THE NATION AT LARGE IT IS BECOMING CLEAR THAT AS SCIENTIFIC STUDIES REPORT NEW FINDINGS ON THE BENEFITS OF MODERATE WINE CONSUMPTION PEOPLE ARE FEELING MORE COMFORTABLE ABOUT DRINKING IT MANY OF THEM START WITH WINES MADE IN THEIR OWN AREA INITIALLY BECAUSE THEY ARE CURIOUS REPEATEDLY BECAUSE THE WINES ARE WORTH DRINKING TABLE WINE CONSUMPTION IN TEXAS INCREASED 5 FROM 1989 TO 1990 WHEREAS NATIONALLY IT INCREASED ONLY 1 A NUMBER OF OTHER STATES HAVE ACHIEVED NEW LEVELS OF QUALITY IN RECENT YEARS OHIO PENNSYLVANIA MICHIGAN MISSOURI NEW MEXICO NORTH CAROLINA COLORADO FORTYTHREE STATES NOW GROW WINE GRAPES AND/OR PRODUCE WINE OFFICIAL NATIONAL RECOGNITION OF THIS PHENOMENON HAS FINALLY COME CONGRESS JUST PASSED A JOINT RESOLUTION MAKING FEB 2127 AMERICAN WINE APPRECIATION WEEK THE BIPARTISAN BILL WAS PROPOSED BY WOMEN FOR WINESENSE A NONPROFIT ORGANIZATION OF FEMALE WINE PROFESSIONALS WHO SUPPORT MODERATE WINE CONSUMPTION THERE WILL BE MANY ORGANIZED CELEBRATIONS BUT THE MOST APPROPRIATE WAY TO SALUTE THIS NEW OCCASION IS TO BUY A BOTTLE OF WINE FROM YOUR REGION AND DRINK IT WITH FRIENDS THIS WEEK MS ENSRUD IS A FREELANCE WINE WRITER BASED IN NEW YORK 9302220185 930222 ECONOMY CLINTON TO PUSH YOUTH APPRENTICESHIPS THAT MOVE STUDENTS INTO SKILLED JOBS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR A CLINTON ADMINISTRATION THAT DREAMS OF CREATING HIGHSKILL HIGHWAGE JOBS HIGHSCHOOLERS ARE THE PROBLEM AS THE FUTURE WORKERS WHO WILL HAVE TO FILL THOSE JOBS THEY MUST BE ABLE TO TURN OUT PRODUCTS AND SERVICES TO COMPETE WITH THE CRAFTSMANSHIP OF THE JAPANESE AND GERMANS AND THE LOW COSTS OF LABOR IN DEVELOPING COUNTRIES THUS THE WHITE HOUSE IS PINNING ITS HOPES ON A RISKY PROGRAM OF YOUTH APPRENTICESHIP A PROGRAM THAT IF DONE PROPERLY WOULD HELP NINTH AND 10TH GRADERS PINPOINT THEIR INTERESTS STUDENTS WOULD THEN BE GUIDED THROUGH SEVERAL YEARS OF A SCHOOLWORK COMBINATION WITH AN EMPHASIS ON A SPECIFIC FIELD SUCH AS COMPUTERS LAW OR FINANCIAL SERVICES THE HOPEDFOR RESULT TRAINED EDUCATED 18YEAROLDS WITH THE OPTION TO HEAD FOR COLLEGE OR CONTINUE IN THEIR FIELDS AT A CONFERENCE THAT BEGINS TODAY LABOR SECRETARY ROBERT REICH AND EDUCATION SECRETARY RICHARD RILEY WILL UNVEIL THEIR VISION OF SUCH A PROGRAM WHILE STAFFERS ARE STILL PIECING TOGETHER DETAILS IT'S CLEAR THAT ANY FEDERAL APPRENTICE PROGRAM WOULD BE DESIGNED TO HELP STATES AND LOCALITIES LINK SCHOOLS AND BUSINESSES TO CREATE CURRICULA THAT WOULD MOVE TEENAGERS INTO SKILLED JOBS STUDIES HAVE SHOWN THAT THE AVERAGE APPRENTICE OR VOCATIONALSCHOOL STUDENT IS ABOUT 28 YEARS OLD THAT FACT RAISES CONCERNS ABOUT WHAT HIGHSCHOOL GRADUATES ARE DOING TO IMPROVE THEIR SKILLS DURING THE INTERVENING DECADE MOST KIDS NOW IF THEY DON'T GO ON TO A FOURYEAR DEGREE ENTER A DECADE OF THEIR 20S WHERE THEY DRIFT FROM LOWWAGE JOB TO LOWWAGE JOB SAID HILARY PENNINGTON PRESIDENT OF JOBS FOR THE FUTURE A NONPROFIT GROUP THAT BACKS APPRENTICE PROGRAMS THE TRICK WOULD BE TO REACH TEENAGERS EARLY TO SET THEM ON MORE PRODUCTIVE TRACKS A FEDERAL PROGRAM ALSO WOULD BE LIKELY TO SET NATIONAL SKILLSTANDARDS TO BE SURE THAT A HIGH SCHOOLER WHO HAS COMPLETED AN APPRENTICESHIP IN MAINE FOR EXAMPLE COULD USE THOSE SAME SKILLS IN OREGON THE CLINTON ECONOMIC PLAN ENVISIONS SPENDING MORE THAN 12 BILLION OVER THE NEXT FOUR YEARS TO DIRECT AND HELP FUND SUCH APPRENTICESHIP PLANS IN ALL 50 STATES COMPARED WITH ONLY SCANT FUNDING OF SIMILAR PROGRAMS CURRENTLY NOT EVERYONE IN THIS COUNTRY SHOULD HAVE A COLLEGE DEGREE MR REICH SAID RECENTLY THERE MUST BE AVENUES OF UPWARD MOBILITY FOR PEOPLE WITHOUT THOSE DEGREES IN CONGRESS EIGHT BILLS WERE INTRODUCED LAST YEAR RELATING TO SCHOOLWORK PROGRAMS AND SEN EDWARD KENNEDY D MASS CHAIRMAN OF THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE IS PLANNING TO PRESS LEGISLATION THAT WOULD ESTABLISH A NATIONAL BOARD TO SET SKILLSSTANDARDS FOR SPECIFIC INDUSTRIES EFFORTS IN THE HOUSE AND SENATE ARE LIKELY TO BE BIPARTISAN REPUBLICANS AND BUSINESS LIKE APPRENTICE PROGRAMS BECAUSE THEY WANT SKILLED WORKERS THE LACK OF HELP FOR STUDENTS WHO AREN'T COLLEGEBOUND SAID REP BILL GOODLING R PA WHO INTRODUCED APPRENTICESHIP LEGISLATION LAST YEAR RESULTS IN AN INADEQUATELY SKILLED WORK FORCE WHICH UNDERCUTS THE ABILITY OF THE US TO COMPETE IN THE INTERNATIONAL ECONOMY NONETHELESS REPUBLICANS WORRY ABOUT THE COSTS OF THE PROGRAM LAST YEAR MANY BACKED A PLAN ADVANCED BY PRESIDENT BUSH TO HELP FUND SUCH PROGRAMS FOR 100 MILLION THE CLINTON ECONOMIC PLAN EARMARKS ABOUT 275 MILLION IN THE YEAR BEGINNING OCT 1 ACCORDING TO THE LABOR DEPARTMENT THE IDEA OF A FEDERAL APPRENTICESHIP PROGRAM RAISES OTHER QUESTIONS AS WELL I THINK THIS WILL BE REAL HARD WORK SAID CURTIS PLOTT PRESIDENT OF THE AMERICAN SOCIETY FOR TRAINING AND DEVELOPMENT AN ALEXANDRIA VA ORGANIZATION OF CORPORATE TRAINING PROFESSIONALS TRAINING IS A VERY DECENTRALIZED OPERATION INSIDE AMERICAN COMPANIES OTHERS SAID THE MAIN HURDLE IS THAT HIGH SCHOOLS ARE DESIGNED ALMOST EXCLUSIVELY TO PUSH YOUNG PEOPLE INTO COLLEGE WE NEED TO GET AWAY FROM THE IDEA IN THIS COUNTRY THAT JOB PREPARATION IS SECOND CLASS ARGUED EUGENIA KEMBLE OF THE AMERICAN FEDERATION OF TEACHERS THE LARGEST TEACHERS UNION SOMEWHAT PARADOXICALLY PROBLEMS ALSO COULD COME FROM ONE OF THE ADMINISTRATION'S BIGGEST BACKERS ORGANIZED LABOR THE BUILDING TRADES FOR YEARS HAVE RUN WHAT SOME BELIEVE ARE THE COUNTRY'S MOST SUCCESSFUL APPRENTICESHIP PROGRAMS TRAINING YOUNG WORKERS IN SUCH SKILLS AS WELDING ASBESTOS REMOVAL AND BRICKLAYING NOW THE BUILDING TRADES ARE WORRIED THAT A NATIONAL APPRENTICE PROGRAM COULD OPEN THE DOOR TO NONUNION EMPLOYEES' LEARNING THE SAME SKILLS IN ADDITION THE BUILDING TRADES LINK THE NUMBER OF WORKERS TO THE AMOUNT OF WORK ARGUED VICTOR KAMBER A LABOR CONSULTANT I AM THRILLED WITH THE IDEA OF TRAINING AND RETRAINING BUT IT HAS TO BE DONE IN THE JOB AREAS WHERE THERE IS A NEED HE SAID STILL THE STAKES COULDN'T BE MUCH HIGHER ABOUT 70 OF WORKERS HAVEN'T GRADUATED FROM COLLEGE AND THEIR EARNINGS HAVE DECREASED OVER THE PAST DECADE ABOUT 20 ADMINISTRATION AND CAPITOL HILL STAFFERS STUDIED A BOSTON PROGRAM PROTECH WHICH IN MANY WAYS EMBODIES THE HOPES OF APPRENTICE PROGRAMS PROTECH FUNNELS 200 11TH AND 12TH GRADE STUDENTS FROM BOSTON PUBLIC HIGH SCHOOLS INTO SIX TEACHING HOSPITALS FOR 15 TO 20 HOURS A WEEK STARTING AT 5 AN HOUR EACH STUDENT PERFORMS HOSPITAL JOBS EVENTUALLY SPECIALIZING IN LAB WORK OR TECHNICAL TASKS THESE KIDS WERE INTERESTED IN HEALTH BUT WERE ENROLLED IN THE KINDS OF COURSES AND PERFORMING AT ACADEMIC PROFICIENCY WHERE THEY COULDN'T HAVE GOTTEN INTO COLLEGE FOR THESE PROGRAMS SAID MS PENNINGTON OF JOBS FOR THE FUTURE FEW OF THE STUDENTS WERE READING AT THEIR GRADE LEVEL A C AVERAGE WAS NORMAL NOW THESE KIDS WILL BECOME PHYSICAL THERAPISTS LAB TECHS OCCUPATIONAL THERAPISTS MS PENNINGTON PREDICTED WHAT IS SO STRIKING IS THAT IF YOU JUST TURN ON THE TAP A LITTLE BIT THEY JUST BLOSSOM 9302220184 930222 INTERNATIONAL SHOWA SHELL HIT BY A BIG LOSS ON FUTURES BET BY DAVID P HAMILTON AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO SHOWA SHELL SEKIYU KK SAID THAT BECAUSE OF A WRONG BET MADE ON DOLLAR FUTURES CONTRACTS IT HAD SUSTAINED AN UNREALIZED LOSS OF ABOUT 125 BILLION YEN 105 BILLION AS OF THE END OF THE YEAR THE LOSS AMOUNTS TO MORE THAN THREE TIMES WHAT THE COMPANY HAD PROJECTED FOR ITS 1992 EARNINGS A SPOKESMAN FOR SHOWA SHELL WHICH IS AN AFFILIATE OF THE ANGLODUTCH OIL GIANT ROYAL DUTCH/SHELL GROUP SAID THE COMPANY HAD PURCHASED A LARGE QUANTITY OF DOLLAR FUTURES CONTRACTS AT AN AVERAGE VALUE OF 145 YEN TO THE DOLLAR THE DOLLAR'S VALUE STOOD AT AROUND 125 YEN AT THE END OF 1992 AND LAST FRIDAY WAS TRADING BELOW 119 YEN IN NEW YORK THE COMPANY NEEDS DOLLARS TO IMPORT CRUDE OIL DOLLAR FUTURES ARE CONTRACTS TO BUY OR SELL DOLLARS AT GIVEN PRICES AT SPECIFIED PERIODS THE SPOKESMAN ADDED THAT THE COMPANY'S LOSS COULD RUN AS HIGH AS 160 BILLION YEN IF THE DOLLAR CONTINUES TO WEAKEN AGAINST THE YEN HE SAID SHOWA SHELL WHICH IS ONE OF JAPAN'S FEW SUCCESSFUL OIL COMPANIES HAD AN OUTSTANDING BALANCE OF 644 BILLION IN DOLLAR FUTURES CONTRACTS AT THE END OF 1992 THE SPOKESMAN SAID SHOWA SHELL HAS TAKEN MEASURES TO CAP THE LOSS ALTHOUGH HE DIDN'T GIVE DETAILS OR SAY WHEN THE LOSS WOULD BE REFLECTED IN THE COMPANY'S EARNINGS MORE INFORMATION WILL BE AVAILABLE WHEN THE COMPANY REPORTS ITS 1992 EARNINGS ON FEB 25 HE SAID THE SPOKESMAN BLAMED THE LOSS ON THE EMPLOYEES RESPONSIBLE FOR BUYING DOLLAR FUTURES WHOM HE SAID BOUGHT CONTRACTS IN EXCESS OF THE COMPANY'S LIMITS BUT HE SAID HE WAS UNABLE TO GIVE DETAILS ABOUT EXACTLY WHAT HAPPENED AND WHETHER THIS WAS PART OF THE COMPANY'S NORMAL HEDGING ACTIVITY SHOWA SHELL REPORTED 1991 SALES OF 162 TRILLION YEN AND A 1991 PRETAX PROFIT OF 433 BILLION YEN THE COMPANY'S LATEST FORECAST FOR 1992 CALLS FOR SALES OF 15 TRILLION YEN AND A 37 BILLION YEN PRETAX PROFIT 9302220183 930222 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 7/8 HIGH 2 13/16 LOW 2 13/16 NEAR CLOSING BID 2 13/16 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 303 30 TO 59 DAYS 305 60 TO 119 DAYS 307 120 TO 149 DAYS 310 150 TO 179 DAYS 312 180 TO 239 DAYS 315 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 312 30 DAYS 314 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 267 THREE MONTHS 277 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 302 ONE MONTH 306 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 298 30 DAYS 298 60 DAYS 298 90 DAYS 3 120 DAYS 305 150 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 675 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 TUESDAY FEBRUARY 16 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 293 13 WEEKS 308 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 734 60 DAYS 743 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4375 2 RATE CAPPED ONEYEAR ADJUSTABLE RATE 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 733 60 DAYS 742 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 530 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 284 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302220182 930222 BENTSEN WON'T RULE OUT DELAY IN TAX INCREASE POSTPONING LEVY ON INCOME MAY NOT BE NECESSARY TREASURY SECRETARY SAYS BY DAVID WESSEL AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THE CLINTON ADMINISTRATION IS WILLING TO CONSIDER DELAYING ITS PROPOSED INCREASES IN PERSONAL INCOME TAXES TO SHIELD THE ECONOMY FROM HARM THIS YEAR BUT SAID HE DOUBTS THAT WILL BE NECESSARY PRESIDENT CLINTON'S ECONOMIC PLAN CALLS FOR MAKING THE INCREASES IN INCOMETAX RATES FOR UPPERINCOME AMERICANS RETROACTIVE TO JAN 1 1993 MR BENTSEN INDICATED SOME CONGRESSIONAL DEMOCRATS FEAR SUCH A MOVE COULD INTERFERE WITH MR CLINTON'S GOAL OF CREATING 500000 JOBS THIS YEAR MR BENTSEN SAID THE DISCUSSIONS WITH LAWMAKERS HOWEVER DON'T ANTICIPATE ANY DELAY IN THE INCREASE IN THE CORPORATE INCOME TAX WHICH WOULD ALSO BE RETROACTIVE TO JAN 1 JOBS ARE PARAMOUNT WHAT WE WANT TO BE SURE OF IS THAT WE ACHIEVE THE 500000 JOBS MR BENTSEN SAID IN AN INTERVIEW YESTERDAY ALTHOUGH EXPRESSING A WILLINGNESS TO CONSIDER THE CONGRESSIONAL CONCERNS MR BENTSEN SAID HE BELIEVES THE RECENT DECLINE IN LONGTERM INTEREST RATES WOULD MORE THAN COMPENSATE FOR ANY SLOWING OF THE ECONOMY THAT MIGHT BE CAUSED BY THE HIGHER TAX RATES LOWER INTEREST RATES ENCOURAGE BUSINESSES AND CONSUMERS TO BORROW AND SPEND AND MR BENTSEN SAID THE DECLINE IN INTEREST RATES IN RESPONSE TO THE CLINTON PLAN HAS BEEN MORE THAN I ANTICIPATED ON FRIDAY THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND DROPPED TO 7 ITS LOWEST MARK SINCE THE GOVERNMENT BEGAN ISSUING THE BONDS REGULARLY IN 1977 DELAYING THE EFFECTIVE DATES OF THE NEW 36 AND 396 MARGINAL INCOME TAX RATES FOR A YEAR WOULD REDUCE BY ABOUT 10 BILLION THE REVENUE MR CLINTON'S PLAN WOULD PRODUCE BUT MR BENTSEN SAID THE ADMINISTRATION WOULD MOVE UP THE EFFECTIVE DATES OF OTHER TAX INCREASES TO COMPENSATE SO THAT IT COULD STILL REACH ITS 1997 DEFICITREDUCTION GOAL THE NEW ENERGY TAX FOR INSTANCE COULD BE PHASED IN MORE RAPIDLY CURRENTLY IT IS TO BE PHASED IN OVER THREE YEARS BEGINNING JULY 1 1994 THE SECRETARY FIRST RAISED THE POSSIBILITY OF DELAYING THE TAX INCREASES YESTERDAY ON ABCTV NEWS'S THIS WEEK WITH DAVID BRINKLEY SEPARATELY MR BENTSEN SET THE STAGE FOR THIS WEEK'S MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS BY SAYING AFTER A SPEECH ON FRIDAY THAT HE WOULD LIKE TO SEE THE YEN RISE IN VALUE MR BENTSEN'S COMMENTS ON FRIDAY HIS FIRST ABOUT THE WORLD'S CURRENCY SITUATION SINCE ASSUMING OFFICE SWIFTLY SENT THE DOLLAR TUMBLING TO A POSTWORLD WAR II LOW OF 11820 YEN AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS DOWN TO 11717 YEN NONETHELESS ANALYSTS SAID THEY EXPECT THE DOLLAR TO FIRM AGAINST THE YEN ONCE THE CURRENT ROUND OF SPECULATION SUBSIDES AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11717 YEN MR BENTSEN'S MARKETMOVING REMARKS FOLLOWED AN ADDRESS AT THE NATIONAL PRESS CLUB WHERE HE WAS ASKED IF HE WOULD LIKE TO SEE A WEAKER DOLLAR PRESUMABLY TO HELP BOLSTER US EXPORTS HE PAUSED FOR A MOMENT THEN REPLIED I'D LIKE TO SEE A STRONGER YEN THE YEN HAS GAINED SHARPLY IN RECENT WEEKS AS SPECULATION HAS GROWN THAT THE G7 NATIONS MIGHT CALL FOR A STRONGER YEN AT THEIR MEETING IN LONDON THIS WEEKEND US OFFICIALS HAVE BEEN URGING JAPAN TO STIMULATE ITS ECONOMY BY INCREASING GOVERNMENT SPENDING RATHER THAN CUTTING INTEREST RATES LOWER RATES WOULD TEND TO MAKE THE YEN FALL AGAINST THE DOLLAR WHICH WOULD MAKE JAPAN'S GOODS CHEAPER COMPARED WITH US PRODUCTS AND BOOST JAPAN'S TRADE SURPLUS WITH THE US THE G7 COUNTRIES ARE THE US JAPAN GERMANY BRITAIN CANADA FRANCE AND ITALY ALSO ON FRIDAY MR BENTSEN SUGGESTED THAT THERE MAY HAVE TO BE SOME ADJUSTMENTS IN THE ADMINISTRATION'S PROPOSED ENERGY TAX TO HELP CERTAIN ENERGYINTENSIVE INDUSTRIES SUCH AS ALUMINUM REMAIN COMPETITIVE WITH FOREIGN RIVALS EXPERTS SAID HOWEVER THAT CURRENT INTERNATIONAL RULES WOULD PREVENT THE REBATE OF THE ENERGY TAX WHEN USMADE PRODUCTS ARE EXPORTED THE RULES ARE LESS CLEAR AS TO WHETHER A COMPARABLE TAX COULD BE IMPOSED ON IMPORTS 9302220181 930222 GERMAN CAR REGISTRATIONS FALL FLENSBURG GERMANY GERMAN NEWCAR REGISTRATIONS IN JANUARY PLUNGED 183 TO 238246 FROM A MONTH EARLIER THE FEDERAL MOTOR VEHICLES OFFICE SAID REGISTRATIONS WERE DOWN 275 FROM JANUARY 1992 IT ADDED 9302220180 930222 INTERNATIONAL CHRISTOPHER VOWS US INVOLVEMENT IN MIDEAST TALKS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL RIYADH SAUDI ARABIA SECRETARY OF STATE WARREN CHRISTOPHER PLEDGED THAT THE US WOULD TAKE AN ACTIVE ROLE IN MIDEAST DIPLOMACY INCLUDING SUGGESTING IDEAS AND SOLUTIONS OF ITS OWN IF ARABS AND ISRAELIS RESUME SERIOUS NEGOTIATIONS MR CHRISTOPHER MADE THE COMMITMENT DURING A NEWS CONFERENCE IN DAMASCUS SYRIA BEFORE FLYING HERE YESTERDAY IT IS PART OF A DEVELOPING MIDDLE EAST POLICY OF INCENTIVES AND PRESSURE THAT HAS BEEN TAKING SHAPE DURING THE SECRETARY OF STATE'S CURRENT TOUR OF THE REGION THE STRATEGY'S SUCCESS FACES AN EARLY TEST WHEN MR CHRISTOPHER FLIES TO TEL AVIV LATER TODAY TO HOLD TWO DAYS OF TALKS WITH ISRAELIS AND PALESTINIANS THE PROSPECT OF GREATER US INVOLVEMENT IS BEING OFFERED TO HELP BREAK THE STALEMATE CAUSED BY ISRAEL'S DECISION IN DECEMBER TO DEPORT 415 PALESTINIANS FROM THE FUNDAMENTALIST GROUP HAMAS THE GROUP HAS CLAIMED RESPONSIBILITY FOR A SURGE OF VIOLENCE AGAINST ISRAELIS MR CHRISTOPHER BELIEVES BOTH JORDAN AND SYRIA ARE EAGER TO RESUME PEACE TALKS WITH ISRAEL US OFFICIALS PRIVATELY SAY THAT LEADERS OF THESE NATIONS HAVE MADE A POINT OF NOT DIRECTLY LINKING THEIR WILLINGNESS TO RESUME TALKS WITH ISRAEL TO THE RETURN OF THE DEPORTEES US OFFICIALS SAID THAT SYRIAN PRESIDENT HAFEZ ASSAD HAD IMPORTANT DISCUSSIONS YESTERDAY WITH MR CHRISTOPHER ABOUT HOW TO CONDUCT SYRIANISRAELI NEGOTIATIONS THE ARABS HAVE BEEN CALLING FOR A MORE ACTIVE US ROLE BELIEVING THAT THIS IS THE MOST EFFECTIVE WAY FOR THEM TO NEGOTIATE WITH ISRAEL A NEW INGREDIENT ACCORDING TO A US ANALYST IS THAT ISRAEL ALSO IS READY FOR MORE AMERICAN INVOLVEMENT PREVIOUSLY ISRAELI LEADERS HAD FEARED THAT AN ACTIVE US ROLE WOULD TRANSLATE INTO ONESIDED PRESSURE ON THEM 9302220179 930222 NISSAN MOTOR ANNOUNCES RECALL CARSON CALIF NISSAN MOTOR CORP SAID IT IS RECALLING ABOUT 106000 MODEL 1991 AND 1992 SENTRAS TO REPLACE A DEFECTIVE VACUUM HOSE THAT MAY LOOSEN AND CAUSE THE EMISSION CONTROL SYSTEM TO BECOME INOPERATIVE ABOUT 9000 SENTRAS INVOLVED IN THE RECALL WERE SOLD IN CANADA 9302220178 930222 CANADIAN CONSUMER PRICES RISE OTTAWA CANADA'S CONSUMER PRICE INDEX ROSE A SEASONALLY ADJUSTED 02 IN JANUARY FROM DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE INDEX INCREASED 03 IN DECEMBER BEFORE ADJUSTMENT FOR SEASONAL FACTORS THE JANUARY INDEX WAS UP 04 FROM DECEMBER AND UP 2 FROM A YEAR EARLIER THE RISE WAS LED BY FOOD AND CLOTHING COSTS 9302220177 930222 CZECH CONSUMER PRICES RISE PRAGUE CONSUMER PRICES IN THE CZECH REPUBLIC ROSE 85 IN JANUARY FROM DECEMBER AND 212 FROM JANUARY 1992 THE ECONOMIC NEWSPAPER HOSPODARSKE NOVINY REPORTED CITING FIGURES FROM THE CZECH STATISTICAL OFFICE THE NEWSPAPER REPORTED THAT THE LARGEST MONTHLY INCREASES WERE 154 IN RESTAURANT PRICES AND 127 FOR SERVICES FOOD PRICES ROSE 82 IN JANUARY FROM DECEMBER AND PRICES OF CONSUMER GOODS INCREASED 6 THE STATISTICS OFFICE SAID THE RISE IN PRICES REFLECTED THE INTRODUCTION OF A NEW VALUEADDED TAX OR VAT 9302220176 930222 WHO'S NEWS BAXTER INTERNATIONAL INC BAXTER INTERNATIONAL INC DEERFIELD ILL SUSAN CROWN VICE PRESIDENT OF HENRY CROWN & CO WAS NAMED A DIRECTOR OF THIS MAKER OF HEALTHCARE PRODUCTS SYSTEMS AND SERVICES INCREASING BOARD MEMBERSHIP TO 18 9302220175 930222 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON JON P NEWTON 51 YEARS OLD FORMER PARTNER OF AN AUSTIN TEXAS LAW FIRM WAS NAMED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS INSURANCE COMPANY 9302220174 930222 CANADA BANKS CUT PRIME RATES OTTAWA CANADA'S MAJOR BANKS REDUCED THEIR PRIME LENDING RATES TO 650 FROM 675 EFFECTIVE TODAY THE REDUCTION WAS PROMPTED BY A DECLINE IN SHORTTERM INTEREST RATES IN THE CANADIAN MONEY MARKET THE PRIME RATE IS A BENCHMARK FOR VARIOUS BANK LENDING CHARGES 9302220173 930222 WHO'S NEWS PEOPLE'S MUTUAL HOLDINGS PEOPLE'S MUTUAL HOLDINGS BRIDGEPORT CONN JEAN M LAVECCHIA 42 YEARS OLD WAS ELECTED TO THE 12MEMBER BOARD OF THE PEOPLE'S BANK UNIT MS LAVECCHIA VICE PRESIDENT FOR HUMAN RESOURCES AT SOUTHERN NEW ENGLAND TELEPHONE CO FILLS A VACANCY CREATED BY THE RETIREMENT OF ROBERT W HUEBNER 70 9302220172 930222 REVIEW & OUTLOOK EDITORIAL IT'S ABOUT POLITICS STUPID THE STOCK MARKET SPENT THE FIRST TWO DAYS AFTER THE CLINTON ECONOMIC SPEECH BOUNCING OFF THE WALLS THROUGHOUT TRADING ON THURSDAY AND FRIDAY THE ARROW ON THE DOW JONES INDUSTRIALS SPUN FROM GAINS TO LOSSES AS PEOPLE TRIED TO FIGURE OUT WHAT CLINTONOMIX ADDS UP TO BUT AS WE SEE MORE OF THE STYLE OF THE CLINTON PRESIDENCY WE'RE DRAWN TO A CONCLUSION IT'S NOT SUPPOSED TO ADD UP AS OUR COLLEAGUE PAUL GIGOT EXPLAINED PERSUASIVELY IN HIS COLUMN LAST FRIDAY THE CLINTON PLAN IS FUNDAMENTALLY A POLITICAL DOCUMENT THE ECONOMICS TO THE EXTENT IT STANDS FOR ANYTHING IS THERE PRIMARILY AS A FOOT SOLDIER IN THE LARGER POLITICAL STRATEGY AS ARTICULATED BY CLINTON POLLSTER STAN GREENBERG THAT STRATEGY IS TO CAPTURE BACK MOST OF THE SUBURBAN SWING VOTE THAT WENT OVER TO RONALD REAGAN THUS THE RICH AND LARGE CORPORATIONS APPEAR IN THE RHETORIC AS BEARING THE BRUNT OF THE PLAN'S COSTS WHILE THE SUBURBAN MIDDLE CLASS IS ASSURED THAT IN RETURN FOR THEIR TAXES THE WELFARE PROBLEM DOWN IN THE CITIES THEY NEVER VISIT IS GOING TO BE FIXED WHILE THEIR OWN PHOBIAS ABOUT HEALTH CARE ARE ADDRESSED BAD OR UNNEEDED GOVERNMENT SPENDING LIKE DEFENSE IS GOING TO BE CUT WHILE GOOD GOVERNMENT SPENDING ROADS SEWERS THE ENVIRONMENT IS SHIPPED OUT TO THE SUBURBS IN RETURN FOR BTU TAXES WHETHER THIS STRATEGY IS PLAUSIBLE IT REFLECTS THE TRADITIONAL DEMOCRATIC FOCUS ON BUILDING POLITICAL POWER WITH GOVERNMENTPROTECTED CONSTITUENCIES THUS IN A GLOBAL ERA WHEN THE PREMIUM ON GETTING THE ECONOMICS RIGHT IS HIGHER THAN EVER WE'RE BACK TO THE ANCIENT DEMOCRATIC PRACTICE OF STUFFING THE UNFORTUNATE NECESSITY OF AN ECONOMIC POLICY INSIDE AN ALLCONTROLLING POLITICAL STRATEGY THE WORLD OF ECONOMIC GROWNUPS IS THEREBY LEFT TO SCRATCH ITS COLLECTIVE HEAD OVER THE PLAN'S ENDLESS ANOMALIES AND CONTRADICTIONS FOR INSTANCE WHILE THE CLINTON RHETORIC ABOUT THE CREDIT CRUNCH AND PROBLEMS FOR SMALL BUSINESS MAKES SENSE HIS TARGETED CAPITAL GAINS EXEMPTION DOES NOT HIS PLAN WOULD HALVE THE CAPITAL GAINS RATE BUT ONLY FOR COMPANIES UNDER 25 MILLION IN MARKET CAPITALIZATION AND HE WOULD GIVE A PERMANENT INVESTMENT TAX CREDIT ONLY TO COMPANIES UNDER 5 MILLION THIS WON'T HELP BUSINESSES TRYING TO MAKE THE LEAP FROM SMALL TO BIG AND IT WON'T DO ANYTHING TO UNLOCK OLD GAINS HOWEVER IT WILL DO WONDERS FOR THE TAXSHELTER INDUSTRY WHICH ALWAYS EMERGES WHEN POLITICAL CALCULATION OVERWHELMS THE PURPOSE OF ECONOMICS WHICH IS EFFICIENCY WITH THE CLINTON PLAN WE'RE GOING BACK TO THE DAYS WHEN TAX ATTORNEYS RATHER THAN MARKET LOGIC DROVE THE ECONOMY WHERE THE DOWNSIZING OF BUSINESS WAS ONCE GUIDED BY ECONOMIC AND TECHNOLOGICAL REALITY NOW IT WILL BE DRIVEN BY TAX DISTORTIONS AS IF SMALLER BUSINESSES ARE SOMEHOW PREFERABLE ON SOCIAL OR AESTHETIC GROUNDS BUT IN CLINTONOMIX EVERYTHING IS SUPPOSED TO TURN OUT OK BECAUSE HIGHER TAXES WILL REDUCE THE DEFICIT THE GOVERNMENT WILL BORROW LESS OF THE NATION'S SAVINGS AND LEAVE MORE AVAILABLE FOR BUSINESS TO INVEST LET'S SET ASIDE THE FACT THAT THE PROMISED SPENDING CUTS THE ONES THAT IN FACT AREN'T TAX INCREASES OR NEW FEES STILL HAVE TO PASS THROUGH THE SAME CONGRESS THAT SPENT THE PAST 12 YEARS DRIVING UP SPENDING TO ABOVE 24 OF GDP AND LEAVE ASIDE THAT MR CLINTON ABANDONED HIS PURPORTED DESIRE FOR THE LINEITEM VETO OR ANY OTHER TOOL THAT MIGHT BEGIN TO MAKE ANY OF THIS CREDIBLE WHAT REMAINS IS THAT THE BREADTH OF THE PROPOSED TAX BURDEN IS ENOUGH TO WASH OUT MOST BENEFITS FROM REDUCED GOVERNMENT BORROWING THE DEFINITION OF THE RICH HAS BEEN SET PREPOSTEROUSLY LOW IN REAL LIFE ALL BUT THE MOST EXTREMELY WEALTHY FAMILIES HAVE THEIR INCOMES BUDGETED TO PAY MORTGAGES TUITION AND OTHER BILLS THAT'S WHY HIGHER TAXES ALWAYS END UP BEING PAID OUT OF SAVINGS ODDLY THE PLAN DOESN'T EVEN ATTEMPT THE FIG LEAF OF SOME SORT OF SAVINGS INCENTIVE SUCH AS AN EXPANDED IRA SHOULD ANY OF THE MIDDLE CLASS DISCOVER THEY HAVE INCOME THAT ISN'T ALREADY BUDGETED AWAY AND NOT COUNTING THE TAX PORK FOR SILICON VALLEY THE PRESIDENT'S PLAN ISN'T LIKELY TO DIRECT MORE SAVINGS TOWARD BUSINESS BY RAISING BOTH CORPORATE AND INDIVIDUAL TAXES THE PLAN DOUBLY REDUCES ANY INCENTIVE TO INVEST FOR STOCK DIVIDEND PAYMENTS THE DEMOCRATS REALLY HAVEN'T LEARNED ANYTHING ABOUT MARKET ECONOMICS WHAT THEY HAVE LEARNED IS THAT THE REPUBLICANS' PROGRAM OF USING ECONOMICS TO CREATE MARKET INCENTIVES COST THEM THREE PRESIDENTIAL ELECTIONS IN A ROW THE FIRST PRIORITY FOR MR CLINTON ELECTED WITH 43 OF THE VOTE IS TO GET THE POLITICS FLOWING IN HIS DIRECTION AS CLINTON STRATEGIST JAMES CARVILLE WOULD BE THE FIRST TO ADMIT THAT FAMOUS PHRASE IT'S THE ECONOMY STUPID HAD NOTHING TO DO WITH ECONOMICS 9302220171 930222 WHO'S NEWS AP GREEN INDUSTRIES INC AP GREEN INDUSTRIES INC MEXICO MO PAUL F HUMMER PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS MINERALS MINER AND PROCESSOR MR HUMMER 51 YEARS OLD SUCCEEDS HARRY M STOVER 66 WHO IN AUGUST ANNOUNCED HIS INTENTION TO RETIRE 9302220170 930222 WHO'S NEWS IMC FERTILIZER GROUP INC IMC FERTILIZER GROUP INC NORTHBROOK ILL WENDELL F BUECHE A DIRECTOR AND FORMER CHIEF EXECUTIVE OFFICER OF ALLISCHALMERS CORP WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FERTILIZER COMPANY MR BUECHE 62 YEARS OLD SUCCEEDS BILLIE B TURNER 62 WHO WILL CONTINUE AS CHAIRMAN AND A MEMBER OF THE EXECUTIVE COMMITTEE MR TURNER IS RESIGNING FOR FAMILY AND PERSONAL REASONS THE COMPANY SAID 9302220169 930222 FINANCING BUSINESS COMAIR HOLDINGS INC COMAIR HOLDINGS INC CINCINNATI SAID IT SOLD 175 MILLION COMMON SHARES AT 2625 EACH RAISING 435 MILLION THE COMMUTER AIRLINE WILL USE PROCEEDS TO FINANCE A PORTION OF ITS ACQUISITION OF CANADAIR REGIONAL JETS RELATED SPARE PARTS AND COSTS RELATED TO NEW TERMINAL FACILITIES AT CINCINNATI/NORTHERN KENTUCKY INTERNATIONAL AIRPORT COMAIR GRANTED UNDERWRITERS LED BY ALEX BROWN & SONS INC A 30DAY OPTION TO BUY AS MANY AS 250000 ADDITIONAL SHARES AT 2625 EACH FOR OVERALLOTMENTS 9302220168 930222 FINANCING BUSINESS ESKIMO PIE CORP ESKIMO PIE CORP RICHMOND VA DECLARED AN INITIAL DIVIDEND OF FIVE CENTS A SHARE PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 15 THE FROZEN NOVELTY MAKER NOTED IT IS DEBTFREE AND HAS AMPLE CASH FLOW TO FINANCE OUR CONTINUED EFFORTS FOR GROWTH THE COMPANY SAID IT INTENDS TO PAY DIVIDENDS QUARTERLY BUT SAID FUTURE PAYMENTS WOULD DEPEND ON FACTORS SUCH AS GENERAL BUSINESS CONDITIONS AND THE COMPANY'S FINANCIAL CONDITION THE COMPANY ALSO AUTHORIZED REPURCHASE OF AS MANY AS 50000 COMMON SHARES IN PERIODIC OPEN MARKET PURCHASES 9302220167 930222 ASIAN GROWTH IS STILL LINKED TO GAINS IN US ECONOMY DESPITE SOME CHANGES BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL UNCLE SAM HAS STOPPED SNIFFLING BUT WILL IT MAKE ANY DIFFERENCE TO ASIA THE LONGDEPENDABLE CLICHE WHEN THE US SNEEZES ASIA CATCHES A COLD APPEARED TO BECOME OBSOLETE IN RECENT YEARS AS THE REGION CONTINUED TO REGISTER HEALTHY ECONOMIC GROWTH WHILE THE US LANGUISHED IN RECESSION AS A RESULT MANY ANALYSTS CONCLUDED THAT ASIA INCREASINGLY SELFRELIANT HAD BECOME IMMUNE TO THE SHIFTING FORTUNES OF WHAT HAD ALWAYS BEEN ITS MOST IMPORTANT CUSTOMER SO NOW THAT THE US IS EXPERIENCING AN UNEXPECTEDLY ROBUST RECOVERY ASIA SHOULDN'T REALLY SEE MUCH BENEFIT RIGHT NOT QUITE SAY MANY ECONOMISTS WHILE GROWING INTRAREGIONAL TRADE AND DIVERSIFICATION INTO NEW MARKETS IN EUROPE HAVE DIMINISHED ASIA'S DEPENDENCE ON THE US SINCE THE MID1980S A STRONG CASE CAN BE MADE THAT THE US ECONOMY REMAINS THE REGION'S MAIN ENGINE OF GROWTH I STILL BELIEVE THE TRADITIONAL ARGUMENT THAT THE ASIAN ECONOMIES ARE THE MAJOR BENEFICIARIES OF THE US RECOVERY SAYS ALFRED WONG SENIOR ECONOMIST AT WARDLEY INVESTMENT SERVICES HONG KONG LTD THAT WILL CERTAINLY BE TRUE IN 1993 WITH EUROPE SINKING INTO RECESSION AND JAPAN DEEP IN MALAISE STRONG US DEMAND WILL BE CRITICALLY IMPORTANT TO ASIAN EXPORTERS ESPECIALLY AS NEW PRODUCTION CAPACITY COMES ON STREAM IN DEVELOPING COUNTRIES SUCH AS INDONESIA THAT IMPORTANCE ALREADY IS APPARENT IN SOME PARTS OF THE REGION FOR INSTANCE THE US SHARE OF THE TOTAL DOMESTIC EXPORTS OF HONG KONG AND SINGAPORE ROSE LAST YEAR FOR THE FIRST TIME IN THREE AND FIVE YEARS RESPECTIVELY FOR SINGAPORE WHICH SAW A HEALTHY 20 INCREASE IN NONOIL DOMESTIC EXPORTS IN THE LAST QUARTER OF 1992 FROM A YEAR EARLIER THE US RECOVERY WILL PUSH ECONOMIC GROWTH TO 65 THIS YEAR FROM 56 IN 1992 ACCORDING TO RANJAN PAL REGIONAL ECONOMIST AT JARDINE FLEMING BROKING LTD STILL MANY ECONOMISTS SKEPTICAL OF THE STAYING POWER OF THE US TURNAROUND WORRY THAT PRESIDENT CLINTON'S PLAN TO RAISE TAXES WILL DAMP AMERICAN CONSUMERS' SPIRITS THE RISK IS THAT THE US RECOVERY WON'T BE ENOUGH TO OFFSET THE DOWNTURN IN JAPAN AND EUROPE MR PAL SAYS SO FAR HOWEVER THE US ECONOMY IS SHOWING SURPRISING STRENGTH UNDERPINNED BY THE LOWEST INTEREST RATES IN A GENERATION PRODUCTIVITY ROSE 27 LAST YEAR THE LARGEST JUMP IN 20 YEARS AND IS THE BEST SIGNAL OF SUSTAINED GROWTH AHEAD HOME SALES AND ORDERS FOR HIGHPRICED CONSUMER ITEMS SUCH AS CARS AND HOUSEHOLD APPLIANCES HAVE SHOWN SHARP INCREASES IN RECENT MONTHS AS WELL THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS FORECASTS THAT THE US ECONOMY WILL GROW 31 THIS YEAR AND 33 IN 1994 ROUGHLY A FULL PERCENTAGE POINT BETTER THAN IN 1992 HOW ASIA STANDS TO BENEFIT FROM THIS PERFORMANCE IS DIFFICULT TO GAUGE IN THE AGGREGATE FOR EACH NATION MUCH DEPENDS ON THE IMPORTANCE OF EXPORTS TO THE OVERALL ECONOMY AND THE TYPE OF GOODS THE COUNTRY IS PRODUCING FOR EXAMPLE THE PHILIPPINES IS THE ASIAN NATION THAT SENDS THE LARGEST SHARE OF ITS TOTAL EXPORTS TO THE US BUT EXPORTS ACCOUNT FOR ONLY A FRACTION OF THE PHILIPPINE ECONOMY SO THE OVERALL IMPACT OF A RISE IN US DEMAND IS MINIMAL SINGAPORE ON THE OTHER HAND IS THE MOST EXPORTDEPENDENT ECONOMY IN THE REGION AND HAS ONE OF THE HIGHEST LEVELS OF US DIRECT INVESTMENT PROBABLY MAKING IT THE REGION'S CHIEF BENEFICIARY OF AMERICAN RECOVERY TAIWAN HONG KONG KOREA AND THAILAND SEND BETWEEN 22 AND 35 OF THEIR DOMESTIC EXPORTS TO THE US BUT HAVE SIGNIFICANT EXPOSURE TO JAPAN AND EUROPE AS WELL YET THE FASTESTGROWING MARKET FOR EXPORTS FROM ALL THESE COUNTRIES ISN'T THE US BUT ASIA ITSELF HALF OF THE REGION'S EXPORTS NOW REMAIN IN THE NEIGHBORHOOD ECONOMISTS SEE THIS AS THE ASIAN ECONOMY'S MOST SIGNIFICANT LONGTERM TREND AND BELIEVE IT WILL ACCELERATE AS DEVELOPING ECONOMIES SUCH AS CHINA INDONESIA AND THAILAND TAKE OFF IN THE 1990S DISAGREEMENTS ARISE OVER HOW MUCH IMPACT THIS STRUCTURAL CHANGE MAY ALREADY BE HAVING I DON'T BELIEVE THE ASIAN ECONOMY MOVES IN LOCKSTEP WITH THE US ECONOMY SAYS ENZIO VON PFEIL CHIEF REGIONAL ECONOMIST AT SG WARBURG SECURITIES FAR EAST LTD THE GROWTH RATES BETWEEN THE THREE CHINAS NOW CORRELATE MORE CLOSELY WITH EACH OTHER THAN WITH THE US TAIWAN AND HONG KONG ARE NOW A FUNCTION OF CHINA'S GROWTH RATE OTHERS COUNTER THAT CHINA WITH ITS 18 BILLION TRADE SURPLUS WITH THE US IN 1992 IS INTEGRALLY LINKED TO THE U S ECONOMY AND THEY NOTE THAT BECAUSE THE REGION'S CONSUMER SPENDING POWER STILL IS RELATIVELY SCANT MUCH OF INTRAREGIONAL TRADE IS RELATED TO RELATIVELY LOW VALUEADDED PROCESSING OF GOODS THAT ARE DESTINED FOR MARKETS OUTSIDE THE REGION A 1991 ECONOMETRIC ANALYSIS BY MAK NAKKEUNG SENIOR ECONOMIST AT NOMURA RESEARCH INSTITUTE HONG KONG LTD FOUND THAT A 1 INCREASE IN EXPORTS TO THE US BY ANY ONE OF THE FOUR TIGERS HONG KONG KOREA SINGAPORE AND TAIWAN CONTRIBUTED THREE TIMES MORE TO ECONOMIC GROWTH THAN A 1 INCREASE IN EXPORTS TO ASIA WOULD HAVE INTRAREGIONAL TRADE AND INVESTMENT WILL PROVIDE A NEW FORCE BUT RIGHT NOW THE DEGREE IS STILL NOT THAT SIGNIFICANT MR MAK SAYS DAVID SHAIRP REGIONAL RESEARCH DIRECTOR FOR BARCLAYS DE ZOETE WEDD ASIA LTD NOTES THAT THE US SHARE OF THE FOUR TIGERS' EXPORTS HAS DECLINED IN RECENT YEARS BUT HE ADDS FOR THE REGION AS A WHOLE THAT DROP HAS BEEN OFFSET AS THE MATURING FOUR TIGERS HAVE RELOCATED LABORINTENSIVE MANUFACTURING TO SUCH DEVELOPING COUNTRIES AS THAILAND AND CHINA BOOSTING THE US EXPORTS OF THOSE COUNTRIES IN AGGREGATE THE REGION IS AS DEPENDENT ON THE US AS IT HAS EVER BEEN HE SAYS THE ARGUMENT FOR STRUCTURAL CHANGE HAS BEEN OVERHYPED MR VON PFEIL AGREES GROWING INTRAREGIONAL TRADE AND INVESTMENT DON'T MEAN IN ANY WAY THAT THE US IS UNIMPORTANT IT JUST MEANS THAT ASIA IS BECOMING IMPORTANT IN ITS OWN RIGHT HE SAYS WHO CONTROLS THE ANCHOR CURRENCY WHO IS THE TECHNOLOGICAL ANCHOR WHO IS PUSHING TRADE REFORM THE MOST IT IS STILL THE US NONFARM PRODUCTIVITY IN THE US GREW 27 IN 1992 THE LARGEST INCREASE IN 20 YEARS AN ARTICLE YESTERDAY ON HOW ASIAN GROWTH IS STILL DEPENDENT ON THE US ECONOMY INCORRECTLY SAID THAT US PRODUCTIVITY OVERALL ROSE THAT AMOUNT 9302220166 930222 WHO'S NEWS PROGRESSIVE CORP PROGRESSIVE CORP MAYFIELD HEIGHTS OHIO ALFRED LERNER 59 DECIDED NOT TO STAND FOR REELECTION AS CHAIRMAN OF THIS INSURANCE COMPANY AT ITS ANNUAL MEETING IN APRIL NO SUCCESSOR WAS NAMED IN A STATEMENT MR LERNER ONLY SAID HE BELIEVES HE CAN CONTRIBUTE TO THE COMPANY WITHOUT A FORMAL POSITION OFFICIALS WERE UNAVAILABLE TO COMMENT FURTHER 9302220165 930222 BUSINESS BRIEF LA GEAR POSTS WIDER THAN EXPECTED LOSS FOR FISCAL 4TH PERIOD SANTA MONICA CALIF LA GEAR INC CONTINUING TO LAG IN THE SNEAKER RACE REPORTED A WIDER THAN ANTICIPATED FISCAL FOURTHQUARTER NET LOSS OF 30 MILLION OR 139 A SHARE ON A 38 DECLINE IN SALES ITS LOSS IN THE YEAREARLIER QUARTER ENDED NOV 30 WAS 38 MILLION OR 204 A SHARE LAST DECEMBER LA GEAR PROJECTED THAT IT WOULD LOSE 27 MILLION TO 31 MILLION IN THE PERIOD SALES WERE 795 MILLION COMPARED WITH 1273 MILLION LA GEAR'S FULLYEAR LOSS WIDENED TO 72 MILLION OR 376 A SHARE FROM 66 MILLION OR 349 A SHARE AS ITS WORLDWIDE FOOTWEAR SALES FELL 246 AND MARGINS NARROWED AS A RESULT OF DISCOUNTING THE LATEST YEAR'S LOSS INCLUDED A PRETAX CHARGE OF 231 MILLION FROM THE SETTLEMENTS OF THREE SHAREHOLDER LAWSUITS AND 125 MILLION PROVISION FOR RESTRUCTURING SALES FELL 31 TO 4302 MILLION THE COMPANY REITERATED THAT IT EXPECTS A NET LOSS IN THE CURRENT HALF IT SAID THAT REESTABLISHING THE COMPANY'S NAME AMONG RETAILERS AND CONSUMERS WILL CONTINUE OVER THE NEXT FEW YEARS AND THAT THE EXTENT OF ITS SUCCESS MAY NOT BE IMMEDIATELY REFLECTED IN THE OPERATING RESULTS BUT LA GEAR SAID ITS PACE IS QUICKENING IN SOME AREAS IT CITED MARKET RECEPTION OF ITS NEW LINE OF LIGHTED SHOES AND IMPROVEMENTS IN PRODUCT SOURCING AND MARKETING INVENTORY FELL TO 56 MILLION PAIRS EQUIVALENT TO 615 MILLION ON NOV 30 FROM A PEAK OF 123 MILLION PAIRS OR 157 MILLION ON JAN 31 1992 LA GEAR HAS NARROWED ITS FOCUS UNDER THE CONTROL OF TREFOIL CAPITAL INVESTORS LP WHICH ACQUIRED A 34 STAKE IN SEPTEMBER 1991 ADDITIONALLY LA GEAR AMENDED ITS BYLAWS TO INCREASE ITS BOARD TO 10 FROM NINE UPON PAYMENT OF THE ACCRUED DIVIDEND ON FEB 26 THE TERMS OF TWO DIRECTORS SELECTED BY TREFOIL VAPPALAK A RAVINDRAN AND CLIFFORD A MILLER WILL EXPIRE MR MILLER 64 YEARS OLD WAS REAPPOINTED TO THE BOARD TO FILL THE VACANCY CREATED BY THE INCREASE IN SIZE ALSO ON FEB 26 MR RAVINDRAN 45 WILL SUCCEED R RUDOLPH REINFRANK 37 ANOTHER DIRECTOR SELECTED BY TREFOIL WHO VOLUNTEERED TO RESIGN A SPOKESMAN SAID MR REINFRANK WILL STAY INVOLVED WITH LA GEAR THROUGH HIS INVOLVEMENT WITH SHAMROCK CAPITAL ADVISORS WHICH HAS A MANAGEMENT CONTRACT WITH LA GEAR THE SPOKESMAN SAID 9302220164 930222 CORPORATE FOCUS CIRCLE K PREPARES TO EMERGE FROM BANKRUPTCY BUT TURNAROUND IS UNCERTAIN AMID DISARRAY AMONG COMPETING PLANS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX AFTER MUCH TINKERING DURING ITS TURBULENT THREEYEAR BANKRUPTCYCOURT PROCEEDING CIRCLE K CORP IS PREPARING TO EMERGE AS A NEW IMPROVED MODEL BUT ONE THAT DOESN'T COME WITH ANY GUARANTEES BART BROWN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS PATCHED UP THE CONVENIENCESTORE CHAIN'S TROUBLED OPERATIONS USING A IRONHANDED APPROACH HE HAS DUMPED UNPROFITABLE STORES REVERSING THE ILLCONCEIVED HYPEREXPANSION THAT LED THE COMPANY INTO ITS CURRENT DIFFICULTY AND FIXED UP THE REMAINING UNITS WITH PAINT POLISH AND NEW PRODUCTS HE ALSO HINTS THAT STRATEGIC ALLIANCES WITH FASTFOOD OPERATORS SUCH AS MCDONALD'S CORP AND TACO BELL MAY BE IN THE WORKS ALTHOUGH HE WON'T PROVIDE SPECIFICS BUT EVEN HE ISN'T SURE THAT THE COMPANY CAN SUSTAIN A TURNAROUND IN A TROUBLED AND HIGHLY COMPETITIVE INDUSTRY INDEED THE COMPANY CONTINUES TO POST LOSSES WITH REORGANIZATION COSTS OF 25 MILLION TO 30 MILLION EXPECTED TO RESULT IN A LOSS OF BETWEEN 15 MILLION AND 20 MILLION FOR THE FISCAL YEAR ENDING APRIL 30 HE SAYS MEANWHILE AS CIRCLE K CREDITORS APPROACH A MARCH 17 DEADLINE TO VOTE ON COMPETING REORGANIZATION PLANS THE WOULDBE BIDDERS FOR THE COMPANY APPEAR TO BE IN DISARRAY THE FRONTRUNNING PLAN WOULD TURN CIRCLE K OVER TO INVESTCORP INTERNATIONAL INC A LOWPROFILE HOLDING COMPANY THAT FUNNELS MONEY FROM PERSIAN GULF ARISTOCRATS INTO US AND EUROPEAN INVESTMENTS INVESTCORP'S PLAN CALLS FOR A 3995 MILLION PAYMENT TO CREDITORS AND A 50 MILLION LINE OF CREDIT PROVIDED TO THE REORGANIZED COMPANY BY ITS INVESTCORP EC BANK BUT BONDHOLDERS WHO WOULD GET NOTHING UNDER THE PROPOSAL HAVE TAKEN TO MUDWRESTLING TACTICS TO DELAY AND DISCREDIT THE PLAN AND STANFORD PHELPS A CONNECTICUTBASED INVESTOR IN DISTRESSED CREDIT WHO REPORTEDLY HOLDS ABOUT 40 MILLION IN CIRCLE K BONDS HIRED A DETECTIVE AGENCY TO SNIFF AROUND INVESTCORP AND TWO OF ITS PARTNERS SPANISH FINANCIER JAVIER DE LA ROSA AND FORMER KUWAITI FINANCE AND OIL MINISTER SHEIK ALI ALKHALIFA ALSABAH BOTH DROPPED OUT OF THE DEAL AFTER BEING LINKED TO A MASSIVE FINANCIAL SCANDAL IN KUWAIT AND SPAIN INVESTCORP SHRUGGED OFF DISCLOSURES BROUGHT BACK TO BONDHOLDERS BY MR PHELPS' GUMSHOES SAYING IT HAD MORE THAN ENOUGH MONEY TO PROCEED ALONE AN ALTERNATIVE PLAN PROPOSED BY BONDHOLDERS AND SENT TO CREDITORS BY BANKRUPTCY JUDGE GEORGE B NEILSON JR ISN'T SUPPORTED BY THE COMPANY THE BANKS THE NOTEHOLDERS OR UNSECURED CREDITORS IT JUST DOESN'T PROVIDE ENOUGH WORKING CAPITAL SAYS PAUL DEBBAN AN ANALYST AT SEIDLER AMBEC SECURITIES LOS ANGELES A THIRD PLAN PROPOSED BY MR PHELPS HAS BEEN IN LIMBO SINCE JUDGE NEILSON DEMANDED PROOF THAT MR PHELPS' SAUDI BACKER PRINCE TURKI BIN FAHD BIN JALAWI ALSAUD HAS THE 360 MILLION HE SUPPOSEDLY PLEDGED POSSIBLE LONG WAIT JUDGE NEILSON MAY HAVE A LONG WAIT PRINCE JALAWI'S GOBETWEEN TO MR PHELPS SEEMS TO HAVE VANISHED AND SAUDI BANKERS ARE NOT FAMILIAR WITH THE PRINCE MR PHELPS DIDN'T RETURN REPEATED CALLS FOR COMMENT PRINCE JALAWI COULDN'T BE REACHED IN THE EYE OF THIS STORM IS CIRCLE K CHAIRMAN MR BROWN WHO WAS A LAWYER FOR A FORMER MAJOR SHAREHOLDER BROUGHT ON BOARD A MONTH AFTER THE COMPANY'S MAY 1990 BANKRUPTCY FILING HE INSISTS THAT CIRCLE K IS A COMPANY TRANSFORMED THE OLD CIRCLE K WENT BELLY UP AFTER DROWNING IN 11 BILLION OF JUNK BOND DEBT USED TO FINANCE A FRENZY OF ACQUISITIONS THE BUYING SPREE LEFT THE COMPANY IN CHAOS WITH OLD OPERATIONS LEFT UNCONSOLIDATED WHILE EXECUTIVES CHASED AFTER NEW ONES IN SOME INSTANCES THE COMPANY WOUND UP OWNING STORES DIRECTLY ACROSS THE STREET FROM EACH OTHER THE COMPANY ALSO BLUNDERED BY INCREASING PRICES AND STUFFING STORES WITH HIGHMARGIN ITEMS NOBODY BOUGHT NOW MR BROWN SAYS A STREAMLINED CIRCLE K HAS PLANS TO SHRINK TO FEWER THAN 2600 STORES FROM ITS CURRENT 2900 AND FROM A PREBANKRUPTCY PEAK OF MORE THAN 4600 UNITS THE COMPANY SLASHED MIDDLE MANAGEMENT POSITIONS IN HALF BROUGHT IN FRESH MANAGEMENT BLOOD AND CHANGED ITS MIX OF PRODUCTS AND PROMOTIONS TRYING TO APPEAL TO WOMEN AS WELL AS ITS TRADITIONAL CUSTOMERS 20TO45YEAROLD MEN IN SEARCH OF BEER AND CIGARETTES THE COMPANY ALSO HAS SPENT 5 MILLION ON AN AD CAMPAIGN TO IMPROVE ITS IMAGE AND PLANS TO SINK AN ADDITIONAL 20 MILLION THIS YEAR INTO NEW FOUNTAINS GRILLS AND OTHER EQUIPMENT AS PART OF REMODELING AND CLEANUP PROGRAMS BUT MANY OF THOSE IDEAS HAVE BEEN TRIED BY OTHER CONVENIENCESTORE CHAINS WITH LESSTHANCOMPELLING RESULTS A SWEEPING REVAMP BY NATIONAL CONVENIENCE STORES INC WHICH OPERATES THE STOPANDGO CHAIN DIDN'T PREVENT IT FROM SLIDING INTO BANKRUPTCY PROCEEDINGS WHILE SOUTHLAND CORP OPERATOR OF THE HUGE 7ELEVEN CHAIN POSTED A LOSS OF 102 MILLION THROUGH THE FIRST NINE MONTHS OF 1992 ON A 7 DECLINE IN REVENUE DESPITE ITS OWN STRATEGIC OVERHAUL AFTER EMERGING FROM BANKRUPTCY PROCEEDINGS EVEN WITH FRESH PAINT AND NEW MARKETING ATTITUDES THE THREE CONVENIENCESTORE CHAINS FACE CONSIDERABLE COMPETITIVE PRESSURE FROM GAS STATION MINIMARTS THAT DON'T DEPEND ON FAT MARGINS ON FOOD PRODUCTS AND ALLNIGHT GROCERY STORES THAT HAVE GREATER SELECTION AND OFTEN BETTER PRICES WE'RE STILL SEEING CONSOLIDATION SAYS BARBARA WEDELSTAEDT AN ANALYST AT DUFF & PHELPS CHICAGO THE INDUSTRY WILL HAVE TO OPERATE ON MUCH LOWER MARGINS THAN BEFORE MR BROWN TOO SEES TOUGH TIMES AHEAD THOUGH HE SAYS SALES IN CIRCLE K'S REMAINING STORES ARE UP 12 THIS YEAR AND HE EXPECTS THAT THE POSTBANKRUPTCY COMPANY WILL GENERATE ENOUGH CASH FLOW TO BUY THE COMPANY A COUPLE OF YEARS OF BREATHING ROOM THEN WE'LL HAVE TO FIND THE SECRET FOR THE YEAR 2000 AND BEYOND HE SAYS WE'RE HUNTING FOR IT JUST LIKE EVERYBODY ELSE AND THERE'S ANOTHER POTENTIAL MIRE IN CIRCLE K'S FUTURE FOUR STATES ARE SUING THE CONVENIENCESTORE CHAIN CHARGING THAT AT MORE THAN 150 OF 900 STORES THAT THE COMPANY ABANDONED LEAKING UNDERGROUND GASOLINE STORAGE TANKS HAVE CONTAMINATED GROUNDWATER IN MANY CASES IN RESIDENTIAL NEIGHBORHOODS ALL TOLD 450 SITES OR MORE MAY BE CONTAMINATED ALTHOUGH REGULATORS AREN'T SURE BECAUSE THE COMPANY NEVER TESTED THE SITES AS REQUIRED BY LAW SAYS JIM CAIRNS ASSISTANT ATTORNEY GENERAL FOR ARIZONA CIRCLE K WHICH SAYS IT EXPECTS TO SPEND 676 MILLION TO CLEAN UP TANKS AT STORES IT IS KEEPING HAS ASKED JUDGE NEILSON TO CAP ITS LIABILITY FOR THE ABANDONED SITES AT 45 MILLION 20 MILLION FROM THE PAYOUT TO UNSECURED CREDITORS AND 25 MILLION FROM INVESTCORP THE STATES SAY THE CLEANUP WILL COST MORE THAN 100 MILLION THE COMPANY INSISTS ITS ACTIONS IN WALKING AWAY FROM THE SITES WERE LEGAL AND BOTH JUDGE NEILSON AND A FEDERAL DISTRICT COURT AGREED BUT THOUGH THE TWO SIDES ARE NEGOTIATING THE STATES ALSO HAVE APPEALED TO THE NINTH US CIRCUIT COURT OF APPEALS IN SAN FRANCISCO LEAVING THE ISSUE STILL VERY MUCH UP IN THE AIR IF THE STATES WIN THE INVESTCORPFUNDED REORGANIZATION PLAN COULD COLLAPSE SINCE EITHER INVESTCORP OR THE UNSECURED CREDITORS UNDER TERMS OF THE BUYOUT CAN WITHDRAW IF CIRCLE K'S ENVIRONMENTAL LIABILITY GOES ABOVE 45 MILLION AND IF THAT HAPPENS ANOTHER BIDDER MIGHT BE DIFFICULT TO FIND AFTER ALL THE INVESTCORP GROUP WAS THE ONLY BIDDER WHEN CIRCLE K AUCTIONED ITSELF OFF LAST YEAR ANALYSTS SAY OTHER POTENTIAL BUYERS WERE SCARED OFF BY THE POTENTIAL ENVIRONMENTAL LIABILITIES MAJOR ITEMS SOLD IN CONVENIENCE STORE OPERATION GASOLINE TOBACCO PRODUCTS BEER WINE AND LIQUOR WHERE PERMITTED BY LAW FAST FOOD BEVERAGES GROCERIES AND SUNDRIES LOTTERY TICKETS MOVIE RENTALS AND MONEY ORDERS 9302220163 930222 INTERNATIONAL HONDA'S NET HURT BY SLOW SALES FELL IN LATEST PERIOD BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO HONDA MOTOR CO HOBBLED BY SLOW CAR SALES IN THE US AND JAPAN SAID CONSOLIDATED NET INCOME IN THE QUARTER ENDED DEC 31 PLUNGED 28 FROM A YEAR EARLIER HONDA LEFT UNCHANGED ITS ESTIMATE THAT NET INCOME FOR THE FISAL YEAR ENDING MARCH 31 WILL FALL 36 TO 413 BILLION YEN 3464 MILLION BUT ANALYSTS SAID THE FULLYEAR FIGURE COULD FALL SHORT OF THAT TARGET IF THE YEN CONTINUES TO APPRECIATE THEREBY LOWERING THE YEN VALUE OF THE COMPANY'S OVERSEAS SALES HONDA'S FULLYEAR PROFIT FORECAST ASSUMES AN EXCHANGE RATE OF 125 YEN TO THE DOLLAR HOWEVER THE DOLLAR HAS WEAKENED AGAINST THE JAPANESE CURRENCY IN RECENT WEEKS RECENTLY TRADING TRADED AT AROUND 119 YEN TAKESHI SUMITA A SENIOR OFFICIAL IN HONDA'S FINANCE DIVISION ACKNOWLEDGED THAT A STRONGER YEN WILL MAKE REALIZING THE FULLYEAR PROFIT FORECAST A LITTLE DIFFICULT HONDA SAID CONSOLIDATED NET INCOME FELL TO 768 BILLION YEN IN THE OCTOBERDECEMBER PERIOD DOWN FROM 1072 BILLION YEN A YEAR EARLIER PRETAX PROFIT FELL 17 TO 1823 BILLION YEN FROM 2194 BILLION YEN A YEAR EARLIER HOWEVER OPERATING PROFIT ROSE 5 TO 2302 BILLION YEN FROM 2201 BILLION YEN A YEAR AGO A HONDA SPOKESMAN SAID THE RISE IN OPERATING INCOME REFLECTED GAINS FROM PRICE INCREASES AND A SERIES OF COSTCUTTING MEASURES IN THE COMPANY'S MANUFACTURING AND RESEARCHANDDEVELOPMENT OPERATIONS JAPAN'S AUTO MAKERS ARE SCRAMBLING TO CONTAIN PRODUCTION COSTS BY REDUCING VARIATIONS IN MODELS AND PARTS WHILE HONDA SAYS ITS RESTRUCTURING EFFORT IS SEVERAL YEARS AHEAD OF OTHER JAPANESE CAR MANUFACTURERS SOME INDUSTRY ANALYSTS DOUBT THAT CLAIM SEVERAL PREDICT THAT HONDA'S EARNINGS WON'T RECOVER UNTIL NEXT YEAR THE COMPANY IS SITTING IN LIMBO SAID NEAL DOYING OF BARING SECURITIES JAPAN INC HONDA HAS GREATER EXPOSURE TO THE US MARKET THAN DO OTHER JAPANESE AUTO MAKERS NONETHELESS ANALYSTS WARN THAT THE COMPANY MAY NOT BE PROPERLY POSITIONED TO CAPITALIZE ON A US RECOVERY HONDA WHICH HAS LOST MARKET SHARE IN THE US PASSENGERCAR SEGMENT RECENTLY LACKS COMPETITIVE ENTRIES FOR FASTGROWING NICHES SUCH AS VANS AND RECREATIONAL VEHICLES THE US IS NO LONGER THE SOURCE OF GROWTH IT ONCE WAS FOR HONDA SAID MR DOYING HONDA DIDN'T PROVIDE AN ESTIMATE FOR FULLYEAR PRETAX OR OPERATING INCOME KOJI ENDO AUTO INDUSTRY ANALYST AT SG WARBURG SECURITIES JAPAN INC PREDICTED HONDA'S FULLYEAR PRETAX PROFIT WILL DROP ABOUT A THIRD FROM LAST YEAR TO 92 BILLION YEN 9302220162 930222 WHO'S NEWS METPRO CORP METPRO CORP HARLEYSVILLE PA EDWIN A WILCOX 54 YEARS OLD RESIGNED FOR PERSONAL REASONS AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF FILTRATION EQUIPMENT MR WILCOX WHOSE RESIGNATION WAS EFFECTIVE LAST WEEK WILL CONTINUE AS A CONSULTANT FOR THE REST OF THE FISCAL YEAR HE IS SUCCEEDED BY 61YEAROLD WILLIAM L KACIN PREVIOUSLY VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S SETHCO UNIT 9302220161 930222 POLITICS & POLICY SEN PRYOR GAINS NEW PROMINENCE AS CLINTON'S CLOSEST ALLY IN CONGRESS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FLYING INTO THE CAPITAL THE OTHER DAY SEN DAVID PRYOR WAS INTERRUPTED BY A MAN WITH A SMALL REQUEST THE MAN'S GIRLFRIEND HOPED FOR A TRANSFER FROM A MILITARY BASE IN COLORADO TO ONE IN GEORGIA AND HE WANTED ME TO CALL SOMEBODY THE ARKANSAS DEMOCRAT DOESN'T WORK ON MILITARY MATTERS BUT HE'S RECEIVING ALL SORTS OF SPECIAL PLEADINGS THESE DAYS AS PRESIDENT CLINTON'S BEST FRIEND ON CAPITOL HILL HE'D BETTER GET USED TO IT IT CAN BE AN UNMITIGATED PAIN SAYS FORMER REPUBLICAN SEN PAUL LAXALT OF NEVADA WHO HAD A SIMILAR RELATIONSHIP WITH THENPRESIDENT REAGAN YOU'VE CONSTANTLY GOT PEOPLE IN YOUR FACE THINKING YOU'VE GOT AN INSIDE ROUTE TO THE MAN HIMSELF EVEN SO THE RELATIONSHIP COULD PAY IMPORTANT DIVIDENDS FOR MR PRYOR AND THE WHITE HOUSE ALIKE FOR THE SENATOR WHO HAS KNOWN MR CLINTON FOR A QUARTER CENTURY AND PRECEDED HIM AS ARKANSAS GOVERNOR IT MEANS ENHANCED PROMINENCE AND INFLUENCE ON THE FINANCE COMMITTEE WHERE CRITICAL DETAILS OF THE PRESIDENT'S ECONOMIC AND HEALTH CARE PROPOSALS WILL BE FORGED I'LL PROBABLY BE PLAYING A LARGER ROLE DRAWLS THE UNDERSTATED MR PRYOR WHO IN JUST THE LAST WEEK WAS SUMMONED TO THE WHITE HOUSE THREE TIMES AS THE CLINTON ECONOMIC PACKAGE CAME TOGETHER MEANWHILE FOR MR CLINTON AND PERHAPS EQUALLY AS IMPORTANT FOR HIS RELATIVELY INEXPERIENCED SENIOR AIDES THE RELATIONSHIP OFFERS A BACKCHANNEL MEANS OF COMMUNICATION AND SOURCE OF ADVICE UNTAINTED BY THE SUBTLE TENSIONS AND RIVALRIES THAT OFTEN COLOR A PRESIDENT'S DEALINGS WITH CAPITOL HILL IT'S A SUBSTANTIAL PORTFOLIO FOR A MAN WHO CONSIDERS HIMSELF LUCKY EVEN TO BE ALIVE TWO YEARS AGO THE THIRDTERM SENATOR THEN 56 SUFFERED A MASSIVE HEART ATTACK WHILE AT HOME ALONE IN HIS WASHINGTON APARTMENT HE MANAGED TO CALL AN AMBULANCE AND RECEIVED EMERGENCY CARE JUST IN TIME AMONG THOSE WHO PHONED SEVERAL TIMES DURING HIS WEEKLONG HOSPITAL STAY WAS BILL CLINTON A YEAR LATER IT WAS MR CLINTON BATTERED BY ALLEGATIONS OF INFIDELITY AND DRAFT EVASION WHO NEEDED RESUSCITATION MR PRYOR TRAVELED TO NEW HAMPSHIRE TO ATTEST TO MR CLINTON'S FITNESS FOR THE OVAL OFFICE BACK HOME HE BUCKED UP DISPIRITED MEMBERS OF THE CANDIDATE'S OWN STAFF FOLLOWING RELEASE OF THE LETTER IN WHICH THENRHODES SCHOLAR CLINTON THANKED A NATIONAL GUARD OFFICIAL FOR SAVING ME FROM THE DRAFT THE SENATOR WALKED THROUGH LITTLE ROCK HEADQUARTERS AND TOLD AIDES HE'S THE NEXT PRESIDENT OF THE UNITED STATES DURING THE FALL CAMPAIGN MR PRYOR DEFENDED HIS FRIEND TENACIOUSLY LEAVING STANDING ORDERS IN THE SENATE CLOAKROOM THAT HE BE CALLED TO THE FLOOR ANY TIME A GOP COLLEAGUE ATTACKED MR CLINTON THE SENATOR IS STILL DEFENDING HIM FROM CRITICISM OF THE DISTRACTING FIGHT OVER GAYS IN THE MILITARY THE ERRORPRONE SEARCH FOR AN ATTORNEY GENERAL AND NOW THE TAXRAISING ECONOMIC PACKAGE BUT MOSTLY HE'S EXPECTED TO HELP THE NEW ADMINISTRATION BEHIND THE SCENES IT WON'T BE HIGH PROFILE BECAUSE THAT'S NOT DAVID PRYOR SAYS TREASURY SECRETARY LLOYD BENTSEN A FORMER TEXAS SENATOR WHO SERVED WITH MR PRYOR ON THE FINANCE COMMITTEE FOR EXAMPLE HOURS AFTER MR CLINTON UNVEILED HIS ECONOMIC PACKAGE LAST WEEK AIDES SUMMONED MR PRYOR TO THE WHITE HOUSE TO HELP HEAD OFF A PUBLIC OUTCRY THE SENATOR WHO CHAIRS THE AGING COMMITTEE HUDDLED WITH REPRESENTATIVES OF SENIOR CITIZENS' GROUPS TO APPEAL FOR RATIONAL DEBATE OVER PROVISIONS AFFECTING THE ELDERLY MR CLINTON CONSULTED MR PRYOR BEFORE HIS INITIAL VISITS TO CAPITOL HILL AND REGULARLY INCLUDES HIM IN STRATEGY SESSIONS WITH SENIOR DEMOCRATS BUT SINCE THE HANDSON PRESIDENT PLAINLY INTENDS TO DO A LOT OF HIS OWN LOBBYING MR PRYOR'S COUNSEL MAY BE EVEN MORE VALUABLE TO SENIOR WHITE HOUSE AIDES PERSONNEL CHIEF BRUCE LINDSEY ONCE WORKED AS MR PRYOR'S ADMINISTRATIVE ASSISTANT CHIEF OF STAFF THOMAS MACK MCLARTY HAS KNOWN MR PRYOR SINCE MR MCLARTY WAS 12 YEARS OLD MCLARTY AIDE SKIP RUTHERFORD SAYS THE CHIEF OF STAFF A NEWCOMER TO WASHINGTON OFTEN PUNCTUATES POLICY DISCUSSION BY ASKING HAVE YOU CHECKED WITH DAVID THE SENATOR'S POLITICAL INSTINCTS AREN'T ALWAYS SURE WHEN MR MCLARTY CALLED HIM FOR ADVICE ABOUT ZOE BAIRD'S NANNY PROBLEM MR PRYOR ADMITS HE WAS NOT SENSITIVE ENOUGH TO KNOW WHAT A DEEP ISSUE IT WAS THROUGHOUT HIS CAREER THE AMIABLE MR PRYOR HAS DISPLAYED A KNACK FOR SPOTLIGHTING POPULAR ISSUES MR CLINTON HIMSELF HAS ALREADY SEIZED ON THE SENATOR'S LONGSTANDING CRUSADE AGAINST HIGH PRESCRIPTION DRUG PRICES AS THE LEADING EDGE OF HIS ASSAULT ON SPECIAL INTERESTS IMPEDING ACCESS TO AFFORDABLE HEALTH CARE THE SENATOR IS ALSO CURRENTLY PUSHING PLANS TO HELP SMALL BUSINESS BY SIMPLIFYING PENSION PROCEDURES AND TO MAKE THE IRS MORE RESPONSIVE TO TAXPAYERS BY PASSING A NEW TAXPAYER'S BILL OF RIGHTS THIS TALENT HAS HELPED HIM AVOID IDEOLOGICAL TRAPS AND BUILD A NEARIMPREGNABLE BASE AT HOME DAVID PRYOR CAN HOLD THAT SEAT AS LONG AS HE WISHES TO HOLD IT SAYS FORMER REPUBLICAN REP ED BETHUNE WHO IN 1984 RECEIVED JUST 43 AGAINST MR PRYOR WHILE RONALD REAGAN WAS SWEEPING THE STATE IN A LANDSLIDE IN 1990 THE ARKANSAS GOP DIDN'T EVEN BOTHER TO FIELD A CANDIDATE THAT POPULARITY AFFORDS MR PRYOR THE FLEXIBILITY TO BACK UNPOPULAR ELEMENTS OF MR CLINTON'S ECONOMIC PROGRAM BUT HELPING GET IT PASSED WILL HARDLY BE EASY AND MR PRYOR WHO TIRES EASILY IN THE WAKE OF TRIPLE HEARTBYPASS SURGERY LAST NOVEMBER WARNS THAT THE INITIAL BUMPS IN THE ROAD ARE JUST THE BEGINNING FOR AN ADMINISTRATION AIMING TO TACKLE BOTH DEFICIT REDUCTION AND COMPREHENSIVE HEALTH CARE REFORM GET IN SIT DOWN BUCKLE UP AND HOLD ON HE SAYS QUOTING A BUMPER STICKER HE SAW RECENTLY ON AN ARKANSAS HIGHWAY THAT'S KIND OF WHAT IT'S GONNA BE HERE FOR FOUR YEARS 9302220160 930222 NEW PLAN REALTY TRUST HOLDER NEW YORK NEW PLAN REALTY TRUST SAID ITS MAJOR INSTITUTIONAL SHAREHOLDER PLANS TO SELL ONETHIRD OF ITS STAKE IN THE REAL ESTATE INVESTMENT TRUST MERCHANT NAVY OFFICERS PENSION FUND OF THE UK SAID IT IS SELLING 25 MILLION SHARES IN PART TO DIVERSIFY ITS INVESTMENT PORTFOLIO IT TOLD NEW PLAN THAT IT HAS NO PLANS TO SELL MORE STOCK IN THE NEAR FUTURE 9302220159 930222 OREGON COURT UPHOLDS USE OF AUTODIAL SALES PITCH THE OREGON SUPREME COURT UPHELD A LOWER COURT RULING OVERTURNING A 1989 STATE LAW THAT BANNED THE USE OF COMPUTERS THAT AUTOMATICALLY DIAL TELEPHONE NUMBERS AND DELIVER RECORDED SALES PITCHES THE CASE WAS BROUGHT BY THE AMERICAN CIVIL LIBERTIES UNION ON BEHALF OF AAA1 LUCKY LEPRECHAUN CO A KEIZER ORE CHIMNEYSWEEPING BUSINESS THE SUPREME COURT AFFIRMED AN APPEALS COURT DECISION THAT OREGON'S CONSTITUTION GIVES COMMERCIAL SPEECH THE SAME LEVEL OF PROTECTION AS NONCOMMERCIAL SPEECH LUCKY LEPRECHAUN AND THE NATIONAL ASSOCIATION OF TELECOMPUTER OPERATORS WON A PRELIMINARY INJUNCTION LATE LAST YEAR STOPPING THE FEDERAL COMMUNICATIONS COMMISSION FROM ENFORCING A KEY PROVISION OF A SIMILAR FEDERAL LAW DESIGNED TO PROTECT CONSUMERS FROM TELEMARKETING CALLS 9302220158 930222 THE ROOM DEAL WAS EASY NOW VOLUME DISCOUNTS AT MCDONALD'S BY JONATHAN DAHL STAFF REPORTER OF THE WALL STREET JOURNAL IN KEEPING WITH HIS PLEDGE TO SLASH FEDERAL WASTE PRESIDENT CLINTON SPENT ONE OF HIS FIRST NIGHTS OUT OF THE WHITE HOUSE IN LESS THAN LUXURIOUS STYLE HE STAYED AT A COMFORT INN IN CHILLICOTHE OHIO IN TOWN LAST THURSDAY TO PROMOTE HIS ECONOMIC PACKAGE MR CLINTON STAYED IN ROOM 143 A SECONDFLOOR ROOM WITH NO BALCONY NO DESIGNER BUBBLE BATH AND NO TELEPHONE IN THE BATHROOM INSTEAD OF BEAUTIFUL PAINTINGS AND FANCY ANTIQUES THE ROOM HAD PLAIN WALL PRINTS OF FLOWERS AND A SIMPLE BLUE AND ROSE COLOR SCHEME IT DID HAVE A LOVELY VIEW OF THE PARKING LOT SAYS A SPOKESWOMAN FOR COMFORT INNS A UNIT OF CHOICE HOTELS INTERNATIONAL INC ACTUALLY IT WASN'T TOTALLY STANDARD ACCOMMODATIONS THE HOTEL PUT HIM UP IN A SOCALLED CORPORATE APARTMENT WHICH HAS A BEDROOM LIVING ROOM AND COMPLETE KITCHEN IT ALSO HAD A VCR REMOTECONTROL TELEVISION WITH CABLE CHANNELS AND A HIGHER QUALITY OF FURNITURE THAN NORMAL THE MANAGER OF THE PROPERTY USED TO LIVE IN THE ROOM IT WAS THE EQUIVALENT OF A PRESIDENTIAL SUITE FOR COMFORT INN SAYS THE SPOKESWOMAN THE ROOM NORMALLY GOES FOR 125 A NIGHT BUT THE HOTEL PLANNED TO CHARGE 4240 THE SPECIAL RATE ALL GOVERMENT EMPLOYEES GET FOR STAYING IN STANDARD ROOMS BUT THE WHITE HOUSE TRAVEL STAFF THOUGHT THAT WAS A LITTLE HIGH AND ASKED TO PAY 40 A NIGHT MR CLINTON LIKE ALL FEDERAL EMPLOYEES ALSO DIDN'T PAY ANY ROOM TAX THE ROOM'S TV DIDN'T COME WITH A CHOICE OF MOVIES TO ORDER BUT THE HOTEL SAYS IT PICKED OUT THREE MOVIE TAPES FOR THE VCR IN THE ROOM FAR AND AWAY BASIC INSTINCT AND GRAND CANYON ALL THE TAPES WERE POLITELY RETURNED REWOUND THE NEXT MORNING SO HOTEL OFFICIALS DON'T KNOW WHETHER THE PRESIDENT WATCHED ANY OF THEM THE HOTEL ALSO GAVE MR CLINTON A TERRYCLOTH ROBE A FREE FRUIT BASKET AND A SILK TIE BUT MAKES NO APOLOGIES FOR THE SPECIAL TREATMENT HE'S A LOYAL CUSTOMER SAYS THE SPOKESWOMAN MR CLINTON HAS STAYED AT COMFORT INNS BEFORE INCLUDING A STOP WITH MRS CLINTON IN ERIE PA DURING HIS CAMPAIGN THE FIRST LADY DIDN'T MAKE THE TRIP TO OHIO PLUS THE SPOKESWOMAN POINTS OUT RESERVATIONS AT THE HOTEL HAVE ALREADY PICKED UP BUT CALLERS WHO WANT TO STAY IN THE ROOM ARE OUT OF LUCK A BUSINESS TRAVELER WHO HAD BEEN THERE ON AN EXTENDED TRIP AND MOVED OUT FOR THE PRESIDENT IS RETURNING FOR THE NEXT FEW MONTHS 9302220156 930222 RUHRKOHLE COAL SALES SLIDE 95 ESSEN GERMANY GERMANY'S LARGEST PRODUCER OF HARD COAL RUHRKOHLE AG SAID SALES FELL 95 IN 1992 TO 428 MILLION TONS FROM 473 MILLION TONS IN 1991 THE DECLINE WAS SPEARHEADED BY A 28 PLUNGE IN COKING COAL SALES TO 49 MILLION TONS FROM 69 MILLION TONS SALES OF COKING COAL USED IN THE PRODUCTION OF STEEL MIRROR THE FLAGGING FORTUNES OF THE GERMAN STEEL INDUSTRY RECENTLY RUHRKOHLE SAID LOW DEMAND FOR COKING COAL MAY FORCE IT TO LIMIT PRODUCTION BY CLOSING DOWN MINES AND PUTTING 8000 MINERS OUT OF WORK COAL AND COMPRESSEDCOALDUST BRIQUETTES SALES SLIPPED TO 364 MILLION TONS FROM 383 MILLION TONS RUHRKOHLE'S UNSOLD RESERVES OF COAL ROSE IN THE YEAR TO 168 MILLION TONS FROM 117 MILLION TONS AN INCREASE RUHRKOHLE CALLED UNSUSTAINABLE TO LIMIT OUTPUT RUHRKOHLE HAS SAID IT WILL IDLE ITS MINES FOR 12 DAYS IN 1993 EMPLOYMENT IS ALREADY DOWN WITH RUHRKOHLE REPORTING A WORK FORCE OF 82000 AT THE END OF 1992 COMPARED WITH 88000 A YEAR EARLIER 9302220155 930222 INTERNATIONAL UKRAINE SELLS 17 PROPERTIES AT FIRST PUBLIC AUCTION LVOV UKRAINE AUTHORITIES SOLD 17 SMALL STATEOWNED ENTERPRISES TO EAGER BUYERS AT THE NATION'S FIRSTEVER PUBLIC AUCTION LAUNCHING A LONGAWAITED PILOT PROGRAM IN SMALLSCALE PRIVATIZATION ORGANIZED BY INTERNATIONAL FINANCE CORP THE WORLD BANK'S LENDING ARM THE ENTERPRISES CONSISTING OF RETAIL SHOPS RESTAURANTS AND CONSUMERSERVICES OUTLETS EACH WERE SOLD FOR 28 MILLION TO 110 MILLION COUPONS OR 1400 TO 55000 TO BOTH WORKERS' COLLECTIVES AND PRIVATE INVESTORS TOTAL PROCEEDS CAME TO 784 MILLION COUPONS OR 392000 I'M SATISFIED I'M MORE THAN SATISFIED SAID ROBERTA FELDMAN THE KIEVBASED IFC LENDING OFFICER WHO SPENT EIGHT MONTHS HELPING LVOV OFFICIALS PUT TOGETHER A PRIVATIZATION PROGRAM SATURDAY'S AUCTION MARKED THE FIRST STEP IN UKRAINE'S BID TO BREAK FROM ITS COMMUNIST PAST BY ALLOWING FOR PRIVATE OWNERSHIP ALTHOUGH BIDDERS WERE IN FACT BUYING THE RIGHT TO A FIVEYEAR LEASE FOR MOST SHOPS THAT WENT ON THE BLOCK ANTHONY DORAN THE IFC'S DIRECTOR FOR RUSSIA UKRAINE BELARUS AND MOLDOVIA SAID IT IS UNLIKELY THAT SATURDAY'S WINNERS WILL LOSE THEIR SHOPS WHEN THE RENTAL AGREEMENTS EXPIRE EITHER LVOV'S CITY AUTHORITIES WILL RENEW THE AGREEMENTS OR ANOTHER MECHANISM ALLOWING FOR THE TRANSFER OF OWNERSHIP WILL BE WORKED OUT HE SAID 9302220154 930222 PUBLIC IRE OVER TAX PLAN FUELED BY TANGLED TABLES WASHINGTON PRESIDENT CLINTON'S ATTEMPT TO DOCUMENT THAT HIS TAX PLAN WOULD HIT THE RICH MUCH HARDER THAN THE MIDDLE CLASS IS PRODUCING UNEXPECTED CONFUSION AND UNJUSTIFIED ANGER TOWARD THE PRESIDENT'S PLAN ON TELEVISION AND RADIO TALK SHOWS AND IN TELEPHONE CALLS TO REPORTERS TAXPAYERS ARE ASSERTING THAT MR CLINTON PROPOSES TO SUBJECT TO INCOME TAXES SUCH ITEMS AS INTEREST ON TAXEXEMPT BONDS EMPLOYERPROVIDED FRINGE BENEFITS WELFARE BENEFITS AND EVEN AN ESTIMATE OF THE RENT SAVED WHEN ONE OWNS A HOUSE MR CLINTON ISN'T MAKING ANY SUCH PROPOSAL THE CONFUSION IS CAUSED BY TABLES RELEASED BY THE TREASURY THAT SHOW HOW MUCH FAMILIES IN VARIOUS INCOME CATEGORIES WOULD PAY IN EXTRA TAXES UNDER THE PRESIDENT'S PROPOSALS TO MAKE SUCH ANALYSES THE TREASURY'S ECONOMISTS HAVE FOR YEARS USED SOMETHING THEY CALL FAMILY ECONOMIC INCOME A THEORETICAL CONCEPT THAT DOES INCLUDE ALL SORTS OF INCOME THAT DOESN'T SHOW UP ON TAX RETURNS THE TREASURY ECONOMISTS' DEFINITION OF FAMILY ECONOMIC INCOME HAS NO EFFECT WHATSOEVER ON WHAT INCOME THE GOVERNMENT ACTUALLY TAXES 9302220153 930222 CHINA EXCEEDS ITS TARGETS FOR CURRENCY ISSUANCE SPECIAL TO THE WALL STREET JOURNAL HONG KONG CHINA PROBABLY ISSUED MORE NEW CURRENCY LAST YEAR THAN THE 80 BILLION YUAN 137 BILLION TARGETED ACCORDING TO AN OFFICIAL REPORT THE CHINA DAILY REPORT DIDN'T SAY HOW MUCH EXTRA MONEY WAS PRINTED IT QUOTED A SPOKESMAN OF THE STATE STATISTICS BUREAU AS SAYING GROWING DEMAND FOR INVESTMENT IN FIXEDINCOME ASSETS HAD DRIVEN THE RISE IN MONEY SUPPLY HE SAID THE OVERPRINTING AND INVESTMENT DRIVE COULD RAISE INFLATION BUT THE SPOKESMAN ALSO PREDICTED THAT SIGNS OF AN OVERHEATING ECONOMY GRADUALLY WILL VANISH BECAUSE OF MACROECONOMIC FINETUNING MEASURES BY THE STATE THE CHINA DAILY SAID THE CENTRAL GOVERNMENT'S RESERVE OF FOREIGN EXCHANGE THROUGHOUT LAST YEAR REMAINED FLAT AROUND 217 BILLION INFLATION THE SPOKESMAN NOTED AVERAGED ABOUT 64 IN CHINA LAST YEAR ALTHOUGH IT REACHED LEVELS OF 13 OR MORE IN SOME OF THE COUNTRY'S FASTER GROWING REGIONS HE SAID ABOUT 70 OF THE INFLATIONARY PRESSURE CAME FROM THE READJUSTMENT OF SOME PRICES BY THE STATE TO BETTER REFLECT MARKET DEMAND THE REPORT SAID 245 OF STATEOWNED ENTERPRISES COVERED IN THE GOVERNMENT'S BUDGET HAD OPERATING LOSSES LAST YEAR WHICH TOTALED 289 BILLION YUAN THE STATISTICS BUREAU SPOKESMAN SAID THE AMOUNT OF THE TOTAL LOSSES NARROWED 36 FROM 1991 THE BUREAU SAID 145 STATE COMPANIES OF THE 346 THAT FILED FOR BANKRUPTCY WERE FORCED TO CLOSE LAST YEAR 9302220152 930222 CLINTON TAPS PHIL LADER FOR POST IN BUDGET OFFICE WASHINGTON PHIL LADER FOUNDER OF THE RENAISSANCE WEEKEND SEMINARS IN SOUTH CAROLINA THAT DREW BILL CLINTON AND HILLARY RODHAM CLINTON AMONG OTHERS WAS NOMINATED TO BE DEPUTY DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE FOR MANAGEMENT MATTERS MR LADER 46 YEARS OLD HAS BEEN PRESIDENT OF BOND UNIVERSITY IN QUEENSLAND AUSTRALIA FOR THE PAST YEAR FORMERLY THE HEAD OF A COMPANY THAT OPERATES AND DEVELOPS RECREATIONAL FACILITIES MR LADER WAS AN UNSUCCESSFUL CANDIDATE FOR GOVERNOR OF SOUTH CAROLINA IN 1986 SEPARATELY LESLIE B SAMUELS AS EXPECTED WAS NOMINATED TO BE ASSISTANT TREASURY SECRETARY FOR TAX POLICY THE TREASURY'S TOP TAX POST MR SAMUELS 50 IS A PARTNER AT CLEARLY GOTTLIEB STEIN & HAMILTON IN NEW YORK TREASURY SECRETARY LLOYD BENTSEN HAD SOME DIFFICULTY FILLING THE IMPORTANT TAX POLICY POST IN PART BECAUSE NEW ETHICS RULES LIMIT THE APPOINTEE'S POSTGOVERNMENT PRACTICE OF TAX LAW AND BECAUSE SOME CANDIDATES WERE CONCERNED THAT MR BENTSEN ALREADY HAD DECIDED WHOM TO PICK FOR SUBORDINATE TAX POSTS IN THE TREASURY THE NOMINATIONS OF MESSRS LADER AND SAMUELS MUST BE CONFIRMED BY THE SENATE MR BENTSEN ALSO APPOINTED EDWARD S KNIGHT 42 A PARTNER AT AKIN GUMP STRAUSS HAUER & FELD IN WASHINGTON TO BE EXECUTIVE SECRETARY AND SENIOR ADVISER 9302220151 930222 JVC TO HAVE A LOSS ON UNITS TOKYO VICTOR CO OF JAPAN A MAJOR CONSUMER ELECTRONICS MAKER SAID FRIDAY IT WILL HAVE A LOSS OF 75 BILLION YEN 629 MILLION FROM THE LIQUIDATION OF THREE OF ITS SUBSIDIARIES JVC SAID IT WILL OFFSET THE LOSS BY SELLING FIXED ASSETS RESULTING IN NO IMPACT ON THE COMPANY'S NET PROFIT JVC EARLIER ANNOUNCED IT WOULD LIQUIDATE VICTOR MAGNETICS CO JVC MAGNETICS EUROPE GMBH AND J2T HOLDING BV AS PART OF A CORPORATE RESTRUCTURING EFFORT 9302220150 930222 DIVIDEND NEWS WESBANCO INC WESBANCO INC WHEELING WVA BOOSTED ITS QUARTERLY DIVIDEND TO 385 CENTS A SHARE FROM 35 CENTS AND CALLED FOR A 2FOR1 STOCK SPLIT THE DIVIDEND IS PAYABLE APRIL 1 TO SHARES OF RECORD MARCH 12 THE STOCK SPLIT WOULD INCREASE THE NUMBER OF SHARES OUTSTANDING TO 66 MILLION IT WOULD ALSO INCLUDE INCREASING THE NUMBER OF AUTHORIZED SHARES TO 25 MILLION FROM 10 MILLION IT IS SUBJECT TO SHAREHOLDER APPROVAL AT THE APRIL 21 ANNUAL MEETING AND WOULD BE PAYABLE APRIL 22 TO SHARES OF RECORD APRIL 2 WESBANCO A BANK HOLDING COMPANY EARNED 123 MILLION OR 373 A SHARE IN 1992 9302220149 930222 MARKETING & MEDIA MCDONALD'S PLANS TO TEST SMOKEFREE RESTAURANTS OAK BROOK ILL MCDONALD'S CORP WILL TEST A SMOKEFREE ENVIRONMENT AT ABOUT 40 OF ITS US RESTAURANTS BOTH COMPANYOWNED AND FRANCHISED OUTLETS IN THE EXPERIMENT WILL BAN SMOKING TO FIND OUT HOW OUR SMOKING CUSTOMERS WOULD FEEL A SENIOR COMPANY OFFICIAL SAID THIS IS SOMETHING ALL PUBLIC PLACES SHOULD BE CONCERNED WITH SMOKEFREE SITES WILL BE SCATTERED ACROSS THE COUNTRY RICHARD G STARMANN A MCDONALD'S SENIOR VICE PRESIDENT SAID IT WAS UNCERTAIN HOW LONG THE TEST WOULD RUN IT'S A COMPLICATED ISSUE THE TEST WON QUICK APPLAUSE FROM THE AMERICAN MEDICAL ASSOCIATION WHICH SAID FASTFOOD CHAINS THAT GO SMOKELESS WILL BE TAKING STRONG MEASURES TO PROTECT THE HEALTH OF THE CHILDREN AND ADULTS WHO USE THESE FACILITIES AND THE TENS OF THOUSANDS OF TEENAGERS WHO STAFF THEM MCDONALD'S LIKE MANY RESTAURANT CHAINS HAS NOSMOKING AREAS IN MOST STORES BUT TWO WEST COAST CHAINS CARL'S JR AND CALIFORNIA PIZZA KITCHEN HAVE BANNED SMOKING IN COMPANYOWNED OUTLETS FOR THE PAST TWO YEARS INDEPENDENT FRANCHISEES ARE ENCOURAGED TO ADOPT A SIMILAR POLICY A SPOKESWOMAN FOR CARL'S JR SAID 9302220148 930222 DELTA TO DEFER 500 MILLION IN CAPITAL EXPENDITURES ATLANTA DELTA AIR LINES FOLLOWING UP ON A WIDERANGING PACKAGE OF COST CUTS ANNOUNCED IN DECEMBER SAID IT WOULD DEFER ABOUT 500 MILLION IN AIRCRAFT CAPITAL EXPENDITURES UNTIL SOME TIME AFTER FISCAL 1995 THE DELAY IN ORDERS BY THE ATLANTABASED AIRLINE COMES TWO MONTHS AFTER IT NEGOTIATED WITH AIRCRAFT MANUFACTURERS TO DEFER AN ADDITIONAL 13 BILLION OF NEW PLANES THE ACTION DELAYS DELIVERIES OF 35 AIRCRAFT FROM BOEING CO AND MCDONNELL DOUGLAS CORP DELTA DECLINED TO SPECIFY THE TYPE OF AIRCRAFT INVOLVED OR HOW MANY WERE ORDERED FROM EACH MANUFACTURER THE REDUCTIONS UNDERSCORE BOTH THE SEVERITY OF THE AIRLINE INDUSTRY'S DOWNTURN AND OF THE CARRIER'S OWN PARTICULAR PROBLEMS INCLUDING HIGH LABOR AND OPERATIONAL COSTS AS WELL AS UNPROFITABLE EUROPEAN ROUTES AS REPORTED LAST MONTH DELTA'S BOARD VOTED TO CUT THE QUARTERLY DIVIDEND TO FIVE CENTS FROM 30 CENTS OTHER COSTCUTTING MEASURES UNVEILED IN DECEMBER INCLUDED A 5 WAGE REDUCTION FOR ALL NONCONTRACT PERSONNEL AS OF FEB 1 AND TRIMMING CAPITAL SPENDING ON CERTAIN FACILITIES AND GROUND EQUIPMENT BY 600 MILLION THROUGH FISCAL 1995 DELTA'S FISCAL YEAR ENDS JUNE 30 IN THE FISCAL SECOND QUARTER ENDED DEC 31 DELTA HAD A LOSS OF 1263 MILLION OR 304 A SHARE ON REVENUE OF 287 BILLION 9302220147 930222 GERMAN AUTO OUTPUT DECLINES FRANKFURT GERMAN AUTOMOBILE PRODUCTION DROPPED 29 IN JANUARY FROM A YEAR EARLIER THE VDA AUTOMOBILE INDUSTRY TRADE ASSOCIATION SAID FRIDAY THE ASSOCIATION ESTIMATED PRODUCTION TOTALED 312000 UNITS DOWN FROM 441039 UNITS IN JANUARY 1992 PRODUCTION ALSO SLIPPED FROM DECEMBER'S 345367 UNITS AND NOVEMBER'S 440549 UNITS VDA SAID MANY GERMAN FACTORIES WERE CLOSED OVER THE CHRISTMAS HOLIDAYS AND INTO JANUARY AS A WAY OF ADJUSTING PRODUCTION TO FALLING DEMAND 9302220146 930222 WHO'S NEWS INTERMARK INC'S SCOTT RESIGNS SAN DIEGO INTERMARK INC AND ITS TRITON GROUP LTD UNIT IN THE MIDST OF BANKRUPTCY COURT PROCEEDINGS SAID CHARLES R SCOTT RESIGNED AS CHAIRMAN AND A DIRECTOR MR SCOTT 64 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FUQUA INDUSTRIES INC A MAJOR SECURED CREDITOR OF INTERMARK THE TERMS OF REPAYMENT HAVE BECOME A VERY HOTLY CONTESTED ISSUE BETWEEN THE TWO COMPANIES AND MR SCOTT WAS ADVISED BY FUQUA ATTORNEYS THAT HE SHOULD NO LONGER REMAIN ON THE INTERMARK BOARD SAID JOHN C STISKA INTERMARK PRESIDENT A SUCCESSOR FOR MR SCOTT WAS NOT NAMED INTERMARK WITH INTERESTS IN BUSINESSES RANGING FROM GAS TURBINES TO RESTAURANTS OWNS 26 OF FUQUA 9302220145 930222 GM TO OFFER JOBHUNTING LEAVES IN EFFORT TO EASE OUT WHITECOLLAR WORKERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WILL TRY TO SPEED CUTS IN ITS WHITECOLLAR WORK FORCE BY GIVING PAID JOBHUNTING LEAVES TO EMPLOYEES WHO AGREE TO QUIT GM ALSO TOLD SALARIED WORKERS THAT IT WILL GRANT MERIT PAY INCREASES LATER THIS YEAR FOR THE FIRST TIME SINCE 1991 THE MOVES HIGHLIGHT GM'S STRUGGLE TO SLASH ITS DOMESTIC WHITECOLLAR WORK FORCE BY 8000 PEOPLE THIS YEAR AND YET BOOST THE MORALE OF THOSE WHO REMAIN BY OFFERING PAID JOBHUNTING LEAVES GM CLEARLY WANTS TO EASE MORE UNNEEDED MANAGERS OUT THE DOOR WITHOUT ORDERING OUTRIGHT LAYOFFS THE NEW APPROACH ALSO IS LESS COSTLY THAN THE EARLY RETIREMENT PACKAGES AND LUMPSUM BUYOUTS OFFERED IN THE PAST AND WILL COVER A MUCH BROADER GROUP OF EMPLOYEES GM HAS SAID IT WANTS TO CUT ITS DOMESTIC SALARIED WORK FORCE TO 71000 PEOPLE FROM 79000 PEOPLE BEFORE THE END OF THE YEAR UNDER WHAT GM CALLS A CAREER TRANSITION PROGRAM SALARIED WORKERS OF ANY AGE WHO HAVE AT LEAST ONE YEAR OF SERVICE COULD AGREE TO QUIT GM BETWEEN APRIL 1 AND JUNE 30 AND THEN RECEIVE FULL PAY AND BENEFITS FOR SIX TO 15 MONTHS GM SAID IT WILL PROVIDE OUTPLACEMENT COUNSELORS TO HELP WITH JOB SEARCHES GM INFORMED SALARIED WORKERS OF THE LATEST INITIATIVE TO REDUCE THEIR RANKS IN A LETTER SIGNED BY PRESIDENT JOHN F SMITH JR AND DELIVERED FRIDAY A GM SPOKESMAN SAID THE COMPANY WON'T FORCE EMPLOYEES TO QUIT AND ADDED THAT SUPERVISORS COULD BLOCK A VALUED SUBORDINATE FROM USING THE PROGRAM BUT GM SIGNALED IT WILL TAKE A TOUGHER LINE WITH MARGINAL EMPLOYEES BY DECLARING THAT IT WILL ELIMINATE NEXT JAN 1 A PROGRAM THAT PROTECTS WHITECOLLAR WORKERS WHOSE POSITIONS ARE ELIMINATED BY EFFICIENCY GAINS MEANWHILE GM OFFICIALS SCURRIED TO SCOTCH REPORTS FROM GERMANY ABOUT VOLKSWAGEN AG'S EFFORTS TO WOO J IGNACIO LOPEZ DE ARRIORTUA GM'S HIGHPROFILE HEAD OF WORLDWIDE PURCHASING MR LOPEZ A SPANIARD WHO MOVED TO DETROIT LAST SPRING RECEIVED A PROMOTION THIS MONTH TO GROUP VICE PRESIDENT FROM VICE PRESIDENT AND FRIDAY MR LOPEZ DECLARED THROUGH A SPOKESWOMAN THAT HE IS HAPPY HERE AT GM AND NOT LEAVING MR LOPEZ'S ENERGETIC APPROACH TO CUTTING GM'S PURCHASING AND ADMINISTRATIVE COSTS IS A KEY ELEMENT IN MR SMITH'S STRATEGY TO RETURN GM'S NORTH AMERICAN OPERATIONS TO PROFITABILITY SEPARATELY GM AND TOYOTA MOTOR CORP HAVE SHELVED A PROPOSAL TO FORM A JOINT VENTURE TO BUILD A LARGE TOYOTA PICKUP AT A GM FACTORY IN DECEMBER THE TWO AUTO MAKERS ACKNOWLEDGED THAT THEY WERE DISCUSSING SUCH A VENTURE BUT GM COOLED TO THE IDEA OF PAVING TOYOTA'S WAY INTO A PROFITABLE SEGMENT THAT IS NOW PROTECTED BY A 25 DUTY ON IMPORTED TRUCKS TOYOTA AND GM OFFICIALS DECLINED TO COMMENT FRIDAY ON REPORTS FROM JAPAN THAT TOYOTA IS LOOKING ON ITS OWN FOR A US SITE TO BUILD MORE TRUCKS 9302220144 930219 BLACK ENTREPRENEURSHIP A SPECIAL REPORT CASH CRUNCH FOR BLACK ENTREPRENEURS RAISING MONEY IS OFTEN THE BIGGEST HURDLE BY UDAYAN GUPTA THE LITANY OF OBSTACLES FACING ENTREPRENEURS IS A FAMILIAR ONE COMPETITIVE MARKETS BUREAUCRATIC RED TAPE LONG HOURS THE LIST IS SEEMINGLY ENDLESS BUT WHEN THE BUSINESS OWNER HAPPENS TO BE BLACK ONE OBSTACLE LOOMS FAR LARGER THAN ANY OTHER IT PREVENTS MANY FROM LAUNCHING THEIR BUSINESSES AT ALL AND FOR THOSE WHO DO GET VENTURES OFF THE GROUND IT STYMIES GROWTH KEEPS SUPPLIERS WARY AND LEAVES PROSPECTIVE EMPLOYEES CAUTIOUS THE OBSTACLE FINANCING SMALL BUSINESSES GENERALLY HAVE DIFFICULTY IN OBTAINING FINANCING AND THOSE OWNED AND OPERATED BY MINORITIES HAVE EVEN GREATER PROBLEMS SAYS DEMOCRATIC REP JOHN LAFALCE OF NEW YORK CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE BANKERS AND VENTURE CAPITALISTS SEE THEIR TIGHTFISTEDNESS AS EASY TO EXPLAIN FOR ONE THING BLACK ENTREPRENEURS TEND TO FOCUS ON SLOWGROWING LOWTECH BUSINESSES LARGELY IN THE SERVICE SECTOR MOST OF THEM TOO HAVE SPENT LITTLE OR NO TIME IN THE RANKS OF CORPORATE MANAGEMENT MUCH OF THEIR EXPERIENCE COMES INSTEAD FROM OPERATING NEIGHBORHOODORIENTED BUSINESSES THAT CATER TO A PREDOMINANTLY BLACK CLIENTELE BLACKS DON'T HAVE SUFFICIENT ASSETS TO PUT UP AS COLLATERAL SAYS MARGARET SIMMS DIRECTOR OF RESEARCH AT THE JOINT CENTER FOR POLITICAL AND ECONOMIC STUDIES A WASHINGTON DC RESEARCH CONCERN THERE'S NOT A LOT OF LIQUIDITY TO TAKE ADVANTAGE OF MOREOVER THOUGH IT MAY BE HARD TO PROVE CONCLUSIVELY FEW WOULD DENY THAT RACISM PLAYS A PART EXPLAINING THE PROBLEM THOUGH IS EASIER THAN SOLVING IT FOR SOME IN THE BUSINESS COMMUNITY THE ANSWER IS TO DEVELOP ALTERNATIVE SOURCES OF FINANCING AMONG THEM MINORITYOWNED VENTURE FUNDS COMMUNITYDEVELOPMENT BANKS AND BUSINESS INCUBATORS WHICH PROVIDE WORKING SPACE AS WELL AS SUPPORT STAFF AND EQUIPMENT BUT PERHAPS THE MOST IMPORTANT EFFORTS ARE AIMED AT FUNDAMENTALLY CHANGING THE WAY BOTH BUSINESS AND GOVERNMENT VIEW MINORITY ENTERPRISE INSTEAD OF SIMPLY HIRING MINORITYOWNED COMPANIES AS SUPPLIERS OF NONESSENTIAL PRODUCTS MORE LARGE COMPANIES ARE TARGETING THOSE BUSINESSES THAT HAVE THE POTENTIAL FOR STRONG GROWTH IN STRATEGIC INDUSTRIES THE LARGE FIRMS THEN PROVIDE THE SMALLER FIRMS WITH CAPITAL TO FINANCE THEIR EXPANSION AND MANAGEMENT SKILLS TO BOLSTER THEIR PRODUCTIVITY AT THE SAME TIME MANY ANALYSTS BELIEVE THAT THE FOCUS OF PUBLIC POLICY MUST CONTINUE TO SHIFT FROM PROVIDING OPPORTUNITIES FOR INDIVIDUALS TOWARD A GREATER EMPHASIS ON ECONOMIC DEVELOPMENT IN 1968 WE TALKED ABOUT INTEGRATION AND JOBS SAYS JOHN ROBINSON THE CHIEF EXECUTIVE OFFICER OF NATIONAL MINORITY BUSINESS COUNCIL INC A NEW YORK CONCERN THAT REPRESENTS MOSTLY SMALL MINORITYOWNED BUSINESSES NOW WE'RE TALKING ABOUT ECONOMIC DEVELOPMENT AND BUILDING AND GROWING BUSINESSES THIS NEW ATTITUDE HAS ALREADY BENEFITTED A FEW COMPANIES SAYS MICHAEL PLATER A RESEARCHER IN ENTREPRENEURSHIP AT THE COLLEGE OF WILLIAM AND MARY IN PARTICULAR HE AND OTHERS CITE TLC BEATRICE INTERNATIONAL HOLDINGS INC WHICH THE LATE BLACK ENTREPRENEUR REGINALD LEWIS PURCHASED IN 1987 IN A 985 MILLION LEVERAGED BUYOUT AND THE PUBLIC FINANCING LAST YEAR OF BET HOLDINGS A BLACK CABLEANDCOMMUNICATIONS CONCERN BUT MR PLATER BELIEVES THAT THESE HIGHPROFILE SUCCESSES HAVE ALSO DIVERTED MONEY AND ATTENTION AWAY FROM MANY BLACKOWNED BUSINESSES WHICH CONTINUE TO BE MOSTLY LOCAL MOMANDPOP OPERATIONS ALTHOUGH MINORITYOWNED BUSINESSES OVERALL NOW ACCOUNT FOR AN ESTIMATED 100 BILLION IN SALES ANNUALLY IN INDUSTRIES RANGING FROM COMMUNICATIONS TO HEALTH CARE THE AVERAGE BLACK ENTREPRENEUR SOON LEARNS THAT MUCH OF THE TALK ABOUT DEVELOPMENT AND OPPORTUNITY IS STILL JUST THAT IN A SURVEY OF BLACK ENTREPRENEURS CONDUCTED LATE LAST YEAR AND EARLY THIS YEAR FOR THE WALL STREET JOURNAL BY THE ROPER ORGANIZATION 73 OF THE RESPONDENTS SAID IT IS MUCH MORE DIFFICULT FOR BLACKOWNED BUSINESSES TO OBTAIN FINANCING THAN IT IS FOR WHITEOWNED BUSINESSES ANOTHER 21 SAID IT IS SOMEWHAT MORE DIFFICULT AND 83 SAID RAISING CAPITAL IS A VERY SERIOUS PROBLEM FOR BLACKOWNED BUSINESSES IN A SIMILAR SURVEY CONDUCTED EARLY LAST YEAR 84 OF RESPONDENTS CALLED LACK OF ACCESS TO FINANCING A MAJOR REASON FOR THE RELATIVE SCARCITY OF BLACKOWNED BUSINESSES SIMILARLY A REPORT ISSUED LATE LAST YEAR BY THE US COMMISSION ON MINORITY BUSINESS DEVELOPMENT CONCLUDED THAT LACK OF ACCESS TO CAPITAL IS ONE OF THE MOST FORMIDABLE STUMBLING BLOCKS TO THE FORMATION AND DEVELOPMENT OF MINORITYOWNED BUSINESSES THE REPORT ALSO FOUND THAT FEDERAL PROGRAMS FELL FAR SHORT OF THEIR POTENTIAL AND WERE HAMPERED BY AN EXCESS OF RED TAPE NEEDLESS BUREAUCRATIC ENTANGLEMENT IT NOTED STRANGLES THE LIFEBLOOD FROM BUSINESSES OWNED BY MINORITIES THE PRIVATE SECTOR HASN'T BEEN MUCH MORE HELPFUL OBSERVES DIANE THOMAS EXECUTIVE DIRECTOR OF THE ENTREPRENEURIAL GROWTH AND INVESTMENT INSTITUTE A WASHINGTON DC ORGANIZATION THAT PROMOTES MINORITY ENTREPRENEURSHIP THE PRIVATE VENTURECAPITAL COMMUNITY ISN'T FINANCING MINORITY DEALS SHE SAYS THE BANKING COMMUNITY INCREASINGLY SUBJECTED TO MORE STRINGENT CREDIT TESTS BY REGULATORY AGENCIES IS UNWILLING TO TAKE WHAT IT CONSIDERS INCREASED RISK IN FINANCING SMALL COMPANIES EVEN WITH THE SMALL BUSINESS ADMINISTRATION LOANGUARANTEE PROGRAM AMONG THE REASONS MS THOMAS CITES FOR THE BANKS' RELUCTANCE TO LEND TO MINORITY ENTREPRENEURS ARE THEIR LOWER LEVEL OF PERSONAL WEALTH TO OFFER AS COLLATERAL AND THE FACT THAT INVESTORS ARE NOT FAMILIAR WITH THE MINORITY BUSINESS COMMUNITY AND THEIR MARKETS ALTHOUGH THE NUMBER OF BLACKS GETTING CORPORATE EXPERIENCE HAS INCREASED SHARPLY IN RECENT YEARS MS THOMAS NOTES THAT THEIR RESTRICTED ACCESS TO MANAGEMENT POSITIONS IS STILL A SIGNIFICANT BARRIER MAKING MATTERS WORSE OF LATE IS THAT WHILE THE CREDIT SQUEEZE OF THE PAST FEW YEARS HAS AFFECTED EVERYONE THE IMPACT ON MINORITY BUSINESSES HAS BEEN DISPROPORTIONATE SAYS MR PLATER THE WILLIAM AND MARY RESEARCHER EVEN WITHIN THE MINORITY BUSINESS COMMUNITY HE ADDS WE HAVE CREATED A TWOTIERED ECONOMIC SYSTEM WHERE ONE SMALL TIER OF HIGHPROFILE ENTERPRISES IS FLOURISHING AND THE REST ALL ARE IN DISTRESS IN THE ROPER SURVEY LAST YEAR 70 OF THE RESPONDENTS SAID THEY HAD RELIED ENTIRELY ON PERSONAL SAVINGS TO FINANCE THEIR BUSINESSES ON AVERAGE 83 OF THE FINANCING FOR BLACKOWNED BUSINESSES OVERALL WAS FOUND TO COME FROM PERSONAL SAVINGS LENDING INSTITUTIONS HAD PROVIDED ONLY 6 THE SAME PROPORTION SUPPLIED BY FRIENDS AND RELATIVES MOST MAINSTREAM VENTURE CAPITALISTS FOR THEIR PART CLAIM THAT BLACKOWNED BUSINESSES OFTEN FLUNK THE TESTS OF SIZE AND GROWTH POTENTIAL WE'RE TRYING TO DO THE BEST DEALS POSSIBLE SAYS ONE MANAGING PARTNER AT A MAJOR MIDWEST FIRM AND IN THE 20 YEARS OR SO I'VE BEEN IN THE BUSINESS I'VE YET TO SEE A PROPOSAL FROM A MINORITY MANAGEMENT TEAM THAT EVEN CAME CLOSE TO THE CRITERIA WE ESTABLISH FOR INVESTING IN GENERAL VENTURE CAPITALISTS SAY THAT MOST OF THE ENTREPRENEURS THEY BACK HAVE HELD KEY MANAGEMENT OR SCIENTIFIC JOBS AT BIG TECHNOLOGY CONCERNS POSITIONS IN WHICH BLACKS ARE SCARCE WITHOUT THE CORPORATE EXPERIENCE IT'S HARD FOR MINORITIES TO ATTRACT INVESTORS ASSERTS THE MANAGING PARTNER MOREOVER HE SAYS THAT HIS FIRM TYPICALLY LIMITS ITS PARTICIPATION TO ENTERPRISES SHOWING GROWTH POTENTIAL OF 25 TO 30 A YEAR WITH ANNUAL INVESTMENT RETURNS OF AT LEAST 20 IT'S NOT THAT MANY WHITEOWNED BUSINESSES REALIZE THESE GOALS HE CONCEDES BUT THEY REMAIN HIS FIRM'S GUIDELINES CONFRONTED WITH SUCH HURDLES SOME BLACKS HAVE TAKEN MATTERS INTO THEIR OWN HANDS IN MANY INNERCITY AREAS THERE IS A GROWING MOVEMENT TO EXPAND PROGRAMS THAT OFFER CAPITAL AND BUSINESS TRAINING TO THE THOUSANDS OF MICROBUSINESSES THAT WOULD OTHERWISE HAVE NO CHANCE AT ALL OF OBTAINING FINANCING AN OLDER EFFORT IS DELTA FOUNDATION A BLACKRUN BUSINESSDEVELOPMENT CONCERN FOUNDED IN 1970 IN GREENVILLE MISS TAPPING A VENTURE FUND FINANCED BY CORPORATIONS AND FOUNDATIONS DELTA PROVIDES CAPITAL PRIMARILY TO ENTREPRENEURS IN RURAL AREAS AND THOSE IN THE FIELD OF COMMUNICATIONS THROUGH A SEPARATE PROFITMAKING DEVELOPMENT UNIT DELTA HAS LAUNCHED SEVERAL VENTURES INCLUDING A SEWING FACTORY AND A PLANT TO ASSEMBLE ELECTRONIC COMPONENTS THE ENTERPRISES WHICH HAVE ALREADY CREATED 700 JOBS ARE DESIGNED TO TRAIN BOTH SKILLED WORKERS AND MANAGERS SAYS HOWARD BUTTE DELTA'S PRESIDENT WE NEED A STRUCTURE THAT CAN PROVIDE CAPITAL AND CREATE DEVELOPMENT OPPORTUNITIES MR BUTTE SAYS THERE IS HOPE THAT THE CLINTON ADMINISTRATION WILL FIND WAYS TO BUILD THAT STRUCTURE PARTICULARLY IN LIGHT OF THE NEW PRESIDENT'S APPOINTMENT OF MINORITYGROUP MEMBERS TO CERTAIN CABINET POSTS INCLUDING RON BROWN AT COMMERCE AND HENRY CISNEROS AT HOUSING AND URBAN DEVELOPMENT THAT COULD HAVE A SIGNIFICANT EFFECT ON MINORITY ECONOMIC DEVELOPMENT SOME SPECIALISTS MEANWHILE HAVE ADVOCATED AN OVERHAUL OF THE FEDERAL PROGRAMS DESIGNED TO AID MINORITYOWNED ENTERPRISE ONE FREQUENTLY HEARD SUGGESTION IS TO GIVE GOVERNMENT AGENCIES THE AUTHORITY TO CONCLUDE CONTRACTS DIRECTLY WITH BUSINESSES THAT QUALIFY FOR HELP UNDER THE FEDERAL SETASIDE PROGRAM UNDER THE CURRENT RULES CORPORATIONS THAT WIN GOVERNMENT CONTRACTS ARE REQUIRED TO RESERVE FOR MINORITYOWNED ENTERPRISES A GIVEN SHARE OF THE BUSINESS GENERATED BY THOSE CONTRACTS GETTING THE GOVERNMENT INVOLVED DIRECTLY THE ARGUMENT GOES WOULD ENSURE COMPLIANCE WITH THE LAW WHICH IS NOW LARGELY UNENFORCED AS FAR AS THE NATIONAL MINORITY SUPPLIER DEVELOPMENT COUNCIL IS CONCERNED THERE'S PLENTY OF ROOM FOR CORPORATIONS TO DO MORE THE TRADE GROUP WHICH LINKS MINORITYOWNED BUSINESSES TO BIG COMPANIES IS SPEARHEADING AN EFFORT TO BOLSTER CORPORATE BUYING OF GOODS AND SERVICES FROM MINORITYOWNED FIRMS ALONG THE SAME LINES THE NATIONAL MINORITY BUSINESS COUNCIL HAS BEGUN ASKING BIG CORPORATIONS TO COMMIT AT LEAST 20 OF THEIR TOTAL PURCHASING BUDGET TO BUYING FROM MINORITY FIRMS OTHERS INCLUDING THE US COMMISSION ON MINORITY BUSINESS DEVELOPMENT CONTEND THAT THE SBA SHOULD BE MORE SELECTIVE IN ITS LENDING PROGRAM RATHER THAN WRITING LOANS TO ALL WHO MEET THE BASIC CRITERIA THEY SAY THE AGENCY SHOULD FOCUS ON NURTURING FASTGROWTH ENTERPRISES IN PROMISING FIELDS CURRENTLY SBAGUARANTEED LOANS HAVE TO BE FULLY COLLATERALIZED AND MANY HIGHTECH HIGHGROWTH COMPANIES LACK COLLATERAL THE GREATER POTENTIAL FOR SUCCESS MIGHT ENABLE THE SBA TO SET LESSRESTRICTIVE CRITERIA FOR THE LOAN GUARANTEES IT PROVIDES AND THIS IN TURN MIGHT ENCOURAGE BANKS TO BE MORE LIBERAL IN THEIR LENDING AND SOME ARGUE THAT ENTERPRISE ZONES ADVOCATED BY MANY DEVELOPMENT PLANNERS AS A WAY TO EASE THE ILLS THAT PLAGUE INNERCITY BLACK BUSINESSES NEED HANDSON MANAGEMENT ASSISTANCE AS MUCH AS CAPITAL GIVING MONEY DIRECTLY TO BLACKOWNED BUSINESSES WITHOUT PROVIDING THEM WITH THE EXPERTISE TO DEPLOY THAT MONEY EFFICIENTLY IS A WASTE OF SCARCE CAPITAL SAYS TERRY JONES THE PRESIDENT OF SYNDICATED COMMUNICATIONS VENTURE PARTNERS II A BLACKOWNED INVESTMENTMANAGEMENT GROUP IN SILVER SPRING MD HIS ADVICE IS TO USE FINANCIAL INTERMEDIARIES TO PROVIDE CAPITAL AND TECHNICAL ASSISTANCE MEANWHILE JUST AS SOME MAINSTREAM BUSINESSES ARE REALIZING THAT IT'S TO THEIR OWN BENEFIT TO ENCOURAGE MINORITY ENTERPRISE SEVERAL PUBLIC PENSION FUNDS ARE NOW TRYING TO HELP LAST NOVEMBER FOR EXAMPLE THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE NATION'S LARGEST PUBLIC PENSION FUND COMMITTED 25 MILLION TO EACH OF TWO MINORITY VENTURECAPITAL GROUPS FAIRVIEW CAPITAL PARTNERS AND BASTION CAPITAL DEWITT BOWMAN THE RETIREMENT FUND'S CHIEF INVESTMENT OFFICER SAYS THAT ITS INVESTMENTS IN MAINSTREAM VENTURECAPITAL FUNDS HAVEN'T PANNED OUT IN TERMS OF SIZABLE RETURNS HE SEES INVESTING IN MINORITYOWNED BUSINESSES NOT ONLY AS NO RISKIER BUT ALSO AS HAVING THE POTENTIAL FOR PRODUCING BROADER ECONOMIC BENEFITS INCLUDING NEW JOBS ANOTHER PROMISING SIGN IS THAT THE PENSION FUNDS OF THE COLLEGE TEACHERS' UNION TIAACREF AND THE CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM WERE AMONG THE SEVEN INITIAL INVESTORS IN SYNDICATED COMMUNICATIONS AS COMPANIES CUT EMPLOYEES AND BEGIN TO LOOK OUTSIDE FOR VARIOUS SERVICES AND PRODUCTS THE IMPORTANCE OF SMALLER BUSINESSES SUCH AS THOSE OWNED BY MANY MINORITIES IS RAPIDLY GROWING SAYS DAVID BROPHY AN ASSOCIATE PROFESSOR OF FINANCE AT THE UNIVERSITY OF MICHIGAN'S BUSINESS SCHOOL THERE IS MORE REASON THAN EVER TO NOW SUPPORT THE SMALLER BUSINESS UNIT MR GUPTA IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU LOOKING FOR HELP THE CASHHUNGRY BLACK ENTREPRENEUR HAS A NUMBER OF PALCES TO GET INFORMATION HERE ARE SOME OF THEM 9302220143 930222 WHO'S NEWS ILLINOIS CENTRAL CORP PRESIDENT CHICAGO ILLINOIS CENTRAL CORP SAID IT NAMED E HUNTER HARRISON 48 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE AND NAMED GILBERT H LAMPHERE 40 CHAIRMAN BOTH MEN SUCCEED EDWARD L MOYERS 64 WHO IN DECEMBER ANNOUNCED PLANS TO STEP DOWN THIS YEAR MR HARRISON WILL ALSO SUCCEED MR MOYERS AS A DIRECTOR OF THE RAILROARD CONCERN THERE ARE NINE MEMBERS ON THE BOARD EARLIER THIS MONTH THE COMPANY REPORTED THAT MR MOYERS WILL ENTER A HOSPITAL FOR TREATMENT OF A HEART CONDITION DISCOVERED IN A ROUTINE EXAMINATION DURING THE PERIOD OF HIS TREATMENT AND CONVALESCENCE THE BOARD ASKED MR HARRISON SENIOR VICE PRESIDENT OPERATIONS TO SERVE AS ACTING CHIEF EXECUTIVE 9302220142 930222 SPAIN'S VEHICLE OUTPUT SKIDS MADRID SPAIN'S MOTOR VEHICLE PRODUCTION DROPPED 20 IN DECEMBER FROM A YEAR EARLIER THE SPANISH ASSOCIATION OF AUTO MAKERS ANFAC SAID FRIDAY ANFAC DIDN'T PROVIDE YEAREARLIER FIGURES BUT SAID THAT THE NUMBER OF VEHICLES PRODUCED IN DECEMBER TOTALED 118982 THE TOTAL NUMBER OF VEHICLES PRODUCED IN 1992 ROSE A MODEST 19 TO 212 MILLION FROM 1991 ANFAC SAID IN DECEMBER THE NUMBER OF PASSENGER CARS PRODUCED PLUNGED 22 TO 99047 CARS WHILE THE NUMBER OF INDUSTRIAL VEHICLES AND BUSES DROPPED 11 TO 19935 UNITS ANFAC SAID LOWER PRODUCTION LEVELS WHICH BEGAN IN JUNE ARE THE DIRECT RESULT OF SLUGGISH DOMESTIC DEMAND AND SHARPLY LOWER EXPORT LEVELS AND CONFIRM A HIGHLY WORRYING CHANGE IN TENDENCY ANFAC SAID MOTOR VEHICLE EXPORTS IN DECEMBER DROPPED 13 TO 96771 UNITS FROM A YEAR EARLIER 9302220141 930222 COSTAIN AGREES TO PAY FINE OF 375 MILLION IN FATAL MINE BLAST LOUISVILLE KY AP A COAL COMPANY PLEADED GUILTY FRIDAY TO 29 CHARGES STEMMING FROM THE DEATHS OF 10 MINERS IN A 1989 EXPLOSION AND AGREED TO PAY 375 MILLION THE LARGEST PENALTY EVER IMPOSED FOR FEDERAL MINESAFETY VIOLATIONS IN A PLEA AGREEMENT COSTAIN COAL INC PART OF COSTAIN GROUP PLC OF BRITAIN ALSO PLEADED NO CONTEST TO THREE OTHER CHARGES A FEDERAL GRAND JURY RETURNED A 32COUNT INDICTMENT EARLIER FRIDAY THAT ACCUSED THE COMPANY OF FOLLOWING A PATTERN OF WIDESPREAD MISCONDUCT THAT ENDANGERED MINERS AND CONCEALING THE HAZARDOUS CONDITIONS TO FEDERAL REGULATORS THE EXPLOSION TOOK PLACE IN SEPTEMBER 1989 AT THE WILLIAM STATION MINE IN WESTERN KENTUCKY AT THAT TIME THE MINE WAS OWNED BY PYRO MINING CO WHICH SUBSEQUENTLY WAS TAKEN OVER BY COSTAIN COAL US ATTORNEY JOSEPH WHITTLE SAID THE 375 MILLION FINE WAS NEARLY FOUR TIMES GREATER THAN THE HIGHEST CRIMINAL PENALTY PREVIOUSLY IMPOSED IN A SINGLE CASE FOR VIOLATIONS OF THE MINE SAFETY ACT THE TOTAL INCLUDED A 3 MILLION CRIMINAL FINE AND A CIVIL PENALTY OF 705568 HE SAID THE COMPANY ALSO WILL BE REQUIRED TO PAY AN ADDITIONAL 5725 IN SPECIAL CRIMINAL PENALTY ASSESSMENTS MR WHITTLE SAID PLUS PROSECUTION EXPENSES US DISTRICT JUDGE CHARLES SIMPSON III WHO PRESIDED AT FRIDAY'S COURT PROCEEDINGS IS NOT BOUND BY THE PLEA AGREEMENT'S TERMS BUT WE HAVE EVERY CONFIDENCE THAT THE COURT WILL APPROVE IT IN ITS ENTIRETY MR WHITTLE SAID THE PROSECUTOR SAID THE INVESTIGATION WAS CONTINUING HE SAID HE ANTICIPATES CHARGES AGAINST INDIVIDUALS INVOLVED IN THE CASE IN THE NEAR FUTURE ONE PERSON WAS CHARGED EARLIER THIS MONTH JAMES H TICHENOR 40 YEARS OLD OF MADISONVILLE AN ACTING MINE FOREMAN PLEADED GUILTY IN US DISTRICT COURT IN LOUISVILLE TO FALSIFYING RECORDS OF METHANE GAS LEVELS IN JULY 1989 THE INDICTMENT INCLUDED 18 COUNTS OF MAKING FALSE STATEMENTS ONE COUNT OF CONSPIRACY NINE COUNTS OF VIOLATING MINESAFETY STANDARDS AND FOUR COUNTS OF MAKING FALSE ENTRIES IN REQUIRED MINE SAFETY ACT RECORDS TWENTYTHREE WERE FELONIES AND NINE WERE MISDEMEANORS 9302220140 930222 INTERNATIONAL MEXICO REJECTS IBM PROTESTS OVER CONTRACTS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN GOVERNMENT REJECTED PROTESTS BY INTERNATIONAL BUSINESS MACHINES CORP AND FIVE OTHER MULTINATIONALS OVER THE HANDLING OF 21 MILLION IN CONTRACTS TO MODERNIZE MEXICO'S AIRTRAFFIC SYSTEM THE COMPANIES HAD FORMALLY PETITIONED MEXICO'S COMPTROLLER SECRETARIAT TO PROTEST ALLEGED IRREGULARITIES IN THE AWARDING OF THE CONTRACTS THE CONTRACT DISPUTE GREW EXPLOSIVE WHEN THE FINANCIAL TIMES OF LONDON PUBLISHED ALLEGATIONS BY AN IBM AGENT THAT MEXICAN OFFICIALS ASKED HIM FOR A 1 MILLION BRIBE TO SECURE THE CONTRACT IBM SAID FRIDAY THAT THE AGENT'S EMPLOYMENT CONTRACT HAS BEEN TERMINATED THOUGH THE COMPANY DECLINED TO COMMENT ON WHETHER THIS WAS CONNECTED TO THE CONTRACT ALLEGATIONS THE AGENT WAS HIRED FOR MARKETING ASSISTANCE ON THE MEXICAN CONTRACT A COMMON PRACTICE IN INTERNATIONAL BUSINESS IBM SAID A SPOKESMAN FOR THE IBM UNIT INVOLVED ACKNOWLEDGED THAT THE COMPANY AUTHORIZED THE AGENT TO GO TO THE MEDIA WITH ITS FORMAL COMPLAINT HOWEVER HE WENT A STEP FURTHER SAID BILL PRATER A SPOKESMAN FOR IBM'S FEDERAL SYSTEMS CO UNIT WHICH SUPERVISED THE AIRPORT BID IBM DIDN'T EXPECT THE AGENT TO MENTION THE BRIBE ALLEGATION A CHARGE FOR WHICH THERE IS NO CORROBORATION MR PRATER SAID IBM AND MEXICAN AUTHORITIES SAY THE AGENT HASN'T SUPPLIED NAMES OF THE MEXICANS INVOLVED IN HIS BRIBE ALLEGATION AT THE MINIMUM WE NEED TO KNOW WHO DID WHAT TO WHOM SAID MARIA ELENA VASQUEZ NAVA MEXICO'S COMPTROLLER GENERAL IBM'S MEXICO OFFICE ISSUED AN EXTENSIVE APOLOGY TO THE MEXICAN GOVERNMENT AND A REPRESENTATIVE EVEN APPEARED ON NATIONAL TELEVISION IBM SAYS IT WON'T PURSUE ITS FORMAL PROTEST WHICH NEVER INVOLVED A BRIBE ALLEGATION THE ISSUE SO PIQUED MEXICAN POLITICAL SENSITIVITIES THAT THE PRESS OFFICE OF PRESIDENT CARLOS SALINAS DE GORTARI TOOK CONTROL OF THE GOVERNMENT'S RESPONSE PRESIDENT SALINAS IS PUSHING HARD FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH FACES TOUGH SLEDDING IN THE US CONGRESS AN INDEPENDENT STUDY BY A MARTIN MARIETTA CORP UNIT CONCLUDED THAT THE PROTESTING MULTINATIONALS LOST THE BID BECAUSE THEY FAILED TO MEET TECHNICAL REQUIREMENTS AND NOT FOR OTHER REASONS THE LOSING AIRTRAFFIC BIDDERS WERE RAYTHEON CO OF LEXINGTON MASS CLOSELY HELD CALMAQUIP ENGINEERING CORP OF MIAMI WORKING TOGETHER WITH A UNIT OF WESTINGHOUSE ELECTRIC CORP OF PITTSBURGH SIEMENS AG OF GERMANY AND NISSHO IWAI CORP OF TOKYO THE WINNERS WERE THOMPSON SA OF FRANCE AND ALENIA SPA A UNIT OF ITALY'S FINMECCANICA SPA 9302220139 930222 ABREAST OF THE MARKET INVESTORS FIND LITTLE GUIDANCE IN CLINTON'S PROGRAM BY WALL STREET JOURNAL STAFF REPORTERS DOUGLAS R SEASE ANITA RAGHAVAN AND MICHAEL R SESIT FOR MONTHS INVESTORS WAITED TO HEAR THE DETAILS OF PRESIDENT CLINTON'S ECONOMIC PACKAGE IN HOPES OF DISCERNING MORE CLEARLY WHAT LAY AHEAD FOR THE ECONOMY AND THE FINANCIAL MARKETS NOW THAT THEY HAVE HEARD THEY ARE MORE CONFUSED THAN EVER THOSE WILD STOCK MARKET SWINGS LAST WEEK WEREN'T CAUSED BY CONFIDENCE AND CERTAINTY WILL HIGHER TAXES TANK THE ECONOMY REIGNITE INFLATION CURE THE BUDGET DEFICIT EVEN INVESTMENT ADVISERS WHO ARE PAID TO HAVE AN OPINION ABOUT THE ECONOMY AND THE STOCK MARKET CONFESS TO PUZZLEMENT THERE IS NO QUESTION THAT THIS IS AN EXTRAORDINARILY CONFUSING TIME AND IT'S LIKELY TO REMAIN SO FOR A WHILE SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP ABOUT THE BEST WE CAN HOPE FOR IS THAT THE ECONOMY CONTINUES TO MUDDLE ALONG HE SAYS WHICH SUGGESTS A STOCK MARKET THAT DOES ABOUT THE SAME THE KEY FACTOR IN MR JOHNSON'S VIEW IS THAT WHILE THE PRESIDENT HAS SAID THE DETAILS OF HIS PROGRAM ARE NEGOTIABLE THE GOAL OF REDUCING THE DEFICIT IS NOT NEGOTIABLE AT THE SAME TIME HE ADDS THE PRESIDENT ISN'T AN INFLEXIBLE IDEOLOGUE HE DEFINITELY GOES WITH THE FLOW SAYS MR JOHNSON NOTING THAT MR CLINTON REDUCED THE SIZE OF HIS FISCAL STIMULUS PACKAGE TO 30 BILLION FROM 50 BILLION AS THE ECONOMY SHOWED INCREASING SIGNS OF RECOVERY IN THE PAST SEVERAL MONTHS THAT CAN BE A POSITIVE ATTRIBUTE IN A PRESIDENT HE SAYS BUT AN INVESTOR CAN'T TAKE A FIXED APPROACH TO A MARKET WHEN THE PRESIDENT DOESN'T HAVE A FIXED APPROACH TO PUBLIC POLICY THE RESULT SAYS MR JOHNSON IS THAT INVESTORS WILL HAVE TO TAKE A SEATOFTHEPANTS APPROACH TO THE STOCK MARKET GUIDED BY THE OVERALL ASSUMPTION THAT HIGHER CORPORATE AND INDIVIDUAL TAXES WILL SLOW THE RATE OF ECONOMIC RECOVERY IN THE NEXT FEW YEARS IN SUCH AN ENVIRONMENT STOCKS OF COMPANIES THAT DEPEND UPON STRONG ECONOMIC GROWTH SUCH AS CHEMICAL PAPER AND ALUMINUM MANUFACTURERS AREN'T LIKELY TO DO AS WELL AS PREVIOUSLY EXPECTED HE SAYS STOCKS OF SOCALLED GROWTH COMPANIES THAT AREN'T ECONOMICALLY SENSITIVE FOOD BEVERAGE AND TOBACCO FOR INSTANCE SHOULD DO BETTER YET HE CAUTIONS THAT INVESTORS SHOULDN'T MAKE BLANKET DECISIONS ABOUT WHAT KINDS OF STOCKS TO OWN CYCLICAL COMPANIES THAT COULD PARTICIPATE IN REBUILDING THE NATION'S HIGHWAYS AND SEWERS COULD DO WELL WHILE THE PHARMACEUTICAL COMPANIES THE CLASSIC GROWTH STOCKS OF THE PAST DECADE PROBABLY WILL SUFFER UNDER THE PRESIDENT'S EFFORTS TO CUT HEALTH CARE COSTS ARTHUR MICHELETTI CHIEF ECONOMIST AND INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF AGREES THAT THE BROAD IMPACT OF THE PRESIDENT'S ECONOMIC PROGRAM WILL BE SLOWER ECONOMIC GROWTH I GAVE CLINTON THE BENEFIT OF THE DOUBT BUT HE'S TURNING INTO MY WORST NIGHTMARE SAYS MR MICHELETTI WE'RE GETTING A JOBDESTROYING DEFICITINCREASING PROGRAM WHAT ALSO WORRIES HIM IS THAT RISING TAXES WILL FORCE INVESTORS TO MAKE DECISIONS BASED ON SOMETHING OTHER THAN INVESTMENT CRITERIA PEOPLE WILL BE MAKING INVESTMENTS FOR TAX REASONS RATHER THAN INVESTMENT REASONS AND THAT'S BAD FOR GROWTH HE SAYS AS FOR STOCK PLAYS MR MICHELETTI SUGGESTS THAT SOME DRUG STOCKS MAY HAVE BEEN BEATEN DOWN ENOUGH TO BE WORTH A LOOK PFIZER FOR INSTANCE HAS AN ENORMOUS NUMBER OF NEW DRUGS THAT WILL TRIPLE ITS SALES OVER THE NEXT THREE YEARS HE SAYS IT MIGHT BE PREMATURE TO JUMP OUT AND BUY PFIZER RIGHT NOW BUT I'D HAVE IT ON MY SHOPPING LIST HE SAYS ONE MONEY MANAGER WHO ISN'T CONFUSED IS FELIX W ZULAUF HEAD OF HIS OWN ASSET MANAGEMENT FIRM IN ZURICH SWITZERLAND MOST OF THE TIME I HAVE A CLEAR VIEW HE SAYS ALTHOUGH SOMETIMES IT'S NOT CORRECT A PESSIMIST HE SEES THE DOW JONES INDUSTRIAL AVERAGE RETREATING 15 AND THE NASDAQ COMPOSITE INDEX FALLING 20 BY MIDYEAR AS A RESULT OF THE PRESIDENT'S POLICIES THE END OF ALL THIS IS GOING TO BE RECESSION NEXT YEAR HE PREDICTS MOREOVER THE DEFICIT PROBLEM STILL WON'T BE SOLVED BECAUSE THEN YOU ARE GOING TO GET LESS TAX REVENUES BECAUSE OF A WEAK ECONOMY AGAIN HISTORY SHOWS HE SAYS THAT HIGHER TAXES LEAD TO LOWER STOCK PRICES PRESIDENT BUSH WAS THE FIRST ONE TO RAISE TAX RATES AND CLINTON IS NOW CONFIRMING THAT THE TREND IS FOR REAL AND WILL GO ON FOR MANY MANY YEARS SAYS MR ZULAUF NONETHELESS HE IS SHOPPING SELECTIVELY FOR US STOCKS ESPECIALLY ENERGY ISSUES HE LIKES OIL SERVICE CONCERNS SUCH AS HALLIBURTON BAKER HUGHES SCHLUMBERGER AND BAROID AS WELL AS NOBLE AFFILIATES AN INDEPENDENT OIL EXPLORER AND PRODUCER DESPITE PRESIDENT CLINTON'S PROPOSED ENERGY TAX MR ZULAUF ARGUES THAT OIL SERVICE COMPANIES HAVE BEEN SO BEATEN DOWN OVER THE PAST DECADE THAT EXCESS CAPACITY HAS BEEN ELIMINATED AND THE SURVIVING CONCERNS ARE HEALTHY IN CONTRAST TO THE GENERAL STOCK MARKET WHICH IS SKY HIGH THESE STOCKS ARE VERY LOW AND DEPRESSED HE SAYS BY CONTRAST WOLFHARD GRAETZ CHIEF INVESTMENT OFFICER OF BANK J VONTOBEL GROUP THINKS IT'S TOO SOON TO PREDICT SPECIFIC CONSEQUENCES OF THE PRESIDENT'S PROPOSALS BUT IT IS OBVIOUS THERE WILL BE MORE GOVERNMENT INTERVENTION MORE GOVERNMENT IN ALL RESPECTS IN AVERAGE AMERICANS' LIVES HE SAYS LONG TERM GOVERNMENT INTERVENTION IS NEVER TOO GOOD FOR THE ECONOMY BECAUSE IT HAS AN INFLATIONARY BIAS AND IT'S BAD FOR PRODUCTIVITY GAINS NEVERTHELESS BANK J VONTOBEL ISN'T PULLING OUT OF US STOCKS AS YET BUT BECAUSE IT SEES BETTER PROSPECTS IN EUROPE IT ISN'T ADDING TO ITS AMERICAN PORTFOLIO EITHER RATHER IT IS SHIFTING THE EMPHASIS OF ITS US PORTFOLIO DESPITE HIS LONGTERM CONCERNS MR GRAETZ NEVERTHELESS THINKS THE US ECONOMY WILL CONTINUE TO RECOVER CONSEQUENTLY HE IS SELLING SUCH WELLKNOWN GROWTH STOCKS AS PHILIP MORRIS AND GENERAL MILLS TO BUY CYCLICAL ISSUES LIKE FORD GENERAL MOTORS FURNITURE MAKER MASCO AND FOSTER WHEELER AN ENGINEERING CONCERN STOCK PRICES JUMPED PROPELLED BY THE MONTHLY EXPIRATION OF STOCKINDEX OPTIONS THE DOW JONES INDUSTRIAL AVERAGE ADVANCED 1999 POINTS TO 332218 STANDARD & POOR'S 500STOCK INDEX GAINED 232 TO 43422 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 119 TO 23927 VOLUME ON THE BIG BOARD WAS HEAVY WITH 307730000 SHARES CHANGING HANDS COMPARED WITH 309420000 SHARES THURSDAY ADVANCING ISSUES TOPPED DECLINERS 1275 TO 682 FOR THE WEEK THE INDUSTRIAL AVERAGE WAS DOWN 21 THE STANDARD & POOR'S 500STOCK INDEX SLIPPED 23 AND THE BIG BOARD'S COMPOSITE INDEX SLUMPED 25 HEALTH CARE STOCKS WERE THE BIGGEST LOSERS AS INVESTORS CONTINUED TO POUND THEM ON FEARS ABOUT PRESIDENT CLINTON'S HEALTH CARE REVISION BILL PFIZER DROPPED 4 5/8 TO 54 1/2 MERCK WAS OFF 1 TO 36 7/8 SCHERINGPLOUGH SKIDDED 3 1/8 TO 53 5/8 AND US SURGICAL TUMBLED 6 1/8 TO 61 1/2 AFTER PAINEWEBBER LOWERED ITS INVESTMENT RATING ON THE STOCK TO NEUTRAL FROM BUY MEDICAL DEVICES STOCKS ALSO ERODED MEDTRONIC WHICH MAKES PACEMAKERS PLUNGED 4 3/4 TO 77 BUT ENERGY STOCKS WERE BIG WINNERS MANY OF THEM HAVE BEEN LANGUISHING RECENTLY BECAUSE CRUDE OIL PRICES ARE LOW BUT NOW THAT PRESIDENT CLINTON IS PROPOSING LEVYING AN ENERGY TAX MANY INVESTORS ARE SWITCHING OUT OF TRANSPORTATION STOCKS PARTICULARLY AIRLINE ISSUES AND MOVING INTO OIL STOCKS EXXON ROSE 2 3/8 TO 64 1/4 TEXACO ADDED 2 TO 62 1/4 AND CHEVRON GAINED 2 1/2 TO 77 3/4 CIRCUS CIRCUS ENTERPRISES FELL 3 7/8 TO 44 3/4 THE CASINO COMPANY SAID THAT ITS PRESIDENT AND CHIEF FINANCIAL OFFICER GLENN SCHAEFFER RESIGNED MR SCHAEFFER WAS SUCCEEDED UNEXPECTEDLY FRIDAY MORNING BY CLYDE TURNER FORMER CHIEF FINANCIAL OFFICER AT RIVAL MIRAGE RESORTS PHILIP MORRIS WAS THE SECOND MOST ACTIVELY TRADED STOCK ON THE BIG BOARD SLIDING 2 5/8 TO 68 A 52WEEK LOW THE TOBACCO CONCERN DENIED RUMORS THAT IT HAD CALLED AN EMERGENCY BOARD MEETING FOR 3 PM EST FRIDAY IT ALSO SAID THAT THE COMPANY IS SUBSTANTIALLY INCREASING NORMAL DAILY PURCHASES IN ITS ONGOING STOCKREPURCHASE PROGRAM BECAUSE ITS STOCK NOW IS SELLING AT AN EXTRAORDINARY VALUE SEPARATELY MCDONALD'S CONFIRMED IT IS TESTING A SMOKING BAN IN SOME RESTAURANTS CITICORP GAINED 1 1/2 TO 26 1/4 DONALDSON LUFKIN & JENRETTE ANALYST THOMAS BROWN URGED CLIENTS TO BUY BANK STOCKS PREDICTING THAT THE BULL MARKET OF THE PAST TWO YEARS WILL CONTINUE MR BROWN SAID HE FAVORS CITICORP SHAWMUT NATIONAL AND BANK OF BOSTON SHAWMUT NATIONAL INCHED UP 3/4 TO 20 7/8 AND BANK OF BOSTON CHALKED UP 1 1/8 TO 25 9302220138 930222 RUSSIANKOREAN AIRCRAFT BID SEOUL SOUTH KOREA RUSSIAN AIRPLANE MAKER MYASISHCHEV CO HAS PROPOSED JOINT AIRCRAFT DEVELOPMENT AND PRODUCTION WITH SOUTH KOREAN AIRCRAFT MANUFACTURERS KOREAN COMPANY OFFICIALS SAID ACCORDING TO THE OFFICIALS FROM SAMSUNG AEROSPACE CO AND DAEWOO HEAVY INDUSTRIES CO THE RUSSIAN COMPANY ASKED THE KOREAN COUNTERPARTS TO DEVELOP AND PRODUCE THREE KINDS OF AIRPLANES NINESEATERS 100SEATERS AND 300SEATERS THE OFFICIALS SAID THE KOREAN COMPANIES ASKED RUSSIA FOR DETAILS ON THE PROPOSAL TO DECIDE WHETHER THE PROJECTS ARE VIABLE KOREAN INDUSTRY WATCHERS SAID JOINT DEVELOPMENT AND MANUFACTURING IN THE AEROSPACE INDUSTRY WITH RUSSIA WOULD ENABLE KOREAN COMPANIES TO OBTAIN ADVANCED AEROSPACE TECHNOLOGY 9302220137 930222 USX AGREES TO FINES PITTSBURGH USX CORP SAID IT ENTERED INTO A CONSENT DECREE AND AGREED TO PAY 18 MILLION IN CIVIL PENALTIES FOR CLEAN AIR ACT VIOLATIONS AT ITS PLANT IN CLAIRTON PA THE VIOLATIONS INCLUDED VENTING INCIDENTS AND PROBLEMS WITH WATER USED IN THE COKEMAKING PROCESS THE STEELMAKER SAID IT SPENT NEARLY 140 MILLION BETWEEN 1987 AND 1990 WHEN THE INCIDENTS OCCURRED TO INSTALL NEW EQUIPMENT UPGRADE EXISTING EQUIPMENT AND TRAIN EMPLOYEES TO CORRECT ENVIRONMENTAL PROBLEMS THE COMPANY ALSO AGREED TO MEET STANDARDS ON COKEOVEN DOORS AND DESULFURIZATION OF COKEOVEN GAS TIGHTER THAN ALLEGHENY COUNTY REGULATIONS 9302220136 930222 SOUTH KOREA'S CAR EXPORTS SOAR SEOUL SOUTH KOREA'S AUTOMOBILE EXPORTS TOTALED 39685 UNITS IN JANUARY A HEFTY SIXFOLD RISE FROM 6381 A YEAR EARLIER THE KOREA AUTOMOBILE MANUFACTURERS ASSOCIATION SAID FRIDAY THE SHARP JUMP LARGELY RESULTED FROM A MONTHLONG LABOR STRIKE IN JANUARY 1991 AT HYUNDAI MOTOR CO THE NATION'S LARGEST AUTO MAKER THE ASSOCIATION SAID EFFORTS BY THE NATION'S AUTO COMPANIES TO DIVERSIFY THEIR EXPORT MARKETS ALSO HELPED TO PRODUCE THE STRONG PERFORMANCE THE ASSOCIATION ADDED BY REGION SHIPMENTS TO NORTH AMERICA REACHED 12011 VEHICLES UP FROM 2911 A YEAR EARLIER WHILE EXPORTS TO EUROPEAN COUNTRIES AMOUNTED TO 10061 UP FROM 2911 ASIAPACIFIC COUNTRIES BOUGHT 6633 SOUTH KOREAN AUTOS IN JANUARY UP FROM 1313 A YEAR EARLIER A TOTAL OF 10980 SOUTH KOREAN AUTOS WENT TO MIDDLE EAST COUNTRIES IN THE MONTH UP FROM 292 A YEAR EARLIER 9302220135 930222 WHO'S NEWS REYNOLDS METALS CO REYNOLDS METALS CO RICHMOND VA DONALD T COWLES 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT HUMAN RESOURCES AND EXTERNAL AFFAIRS OF THIS ALUMINUM MAKER THIS IS A NEW POSITION D MICHAEL JONES 39 SUCCEEDS MR COWLES AS VICE PRESIDENT GENERAL COUNSEL AND CORPORATE SECRETARY MR JONES FORMERLY WAS ASSOCIATE GENERAL COUNSEL AND ASSISTANT SECRETARY ALLEN M EAREHART 50 WAS NAMED CONTROLLER HE PREVIOUSLY WAS DIRECTOR OF CORPORATE ACCOUNTING MR EAREHART SUCCEEDS DAVID C BILSING 59 WHO IS RETIRING MARCH 1 9302220134 930222 EASTMAN KODAK SETS COUPONS ROCHESTER NY EASTMAN KODAK CO IN ITS LATEST EFFORT TO SPUR SALES OF ITS PHOTO CD PLAYER SAID IT WILL OFFER COUPONS TO CUSTOMERS WORTH 50 WHEN THEY TRANSFER PICTURES TO COMPACT DISCS THE COUPON OFFER AVAILABLE TO CONSUMERS WHO BUY THE MACHINES FROM MARCH 15 TO SEPT 30 COMES JUST OVER A MONTH AFTER KODAK SLASHED PRICES ON THE PHOTO CD PLAYERS KODAK SAID IT'S PLEASED WITH SALES SO FAR BUT DIDN'T PROVIDE FIGURES THE COMPANY SAID IT COSTS ABOUT 20 TO DEVELOP AND TRANSFER A 24EXPOSURE ROLL OF 35MM FILM THE COUPONS EXPIRE SEPT 30 1994 THE PLAYERS DISPLAY PICTURES ON TELEVISION AND ALSO PLAY MUSIC 9302220133 930222 BUSINESS BRIEF HYUNDAI ENGINEERING & CONSTRUCTION SINGAPORE AWARDS CONTRACT FOR A TOTAL OF 380 MILLION SOUTH KOREA'S HYUNDAI ENGINEERING & CONSTRUCTION CO SEOUL WAS AWARDED A 380 MILLION CONTRACT TO RECLAIM LAND FOR AN AIRPORT IN SINGAPORE COMPANY OFFICIALS SAID FRIDAY THE SINGAPORE GOVERNMENT INFORMED HYUNDAI THAT IT WON THE INTERNATIONAL BIDDING INVOLVING 14 FOREIGN FIRMS HYUNDAI THE NATION'S LARGEST CONSTRUCTION COMPANY HAS THUS FAR WON 600 MILLION IN CONTRACTS FOR RECLAMATION PROJECTS IN SINGAPORE COMPANY OFFICIALS SAID 9302220132 930222 WHO'S NEWS HD VEST INC HD VEST INC IRVING TEXAS THREE OFFICERS OF THIS FINANCIALSERVICES FIRM WERE NAMED EXECUTIVE VICE PRESIDENTS AND APPOINTED TO A NEWLY CREATED EXECUTIVE COMMITTEE THAT WILL REPLACE THE POSITION OF PRESIDENT FORMERLY HELD BY HERB VEST MR VEST 48 YEARS OLD WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE NEW EXECUTIVE VICE PRESIDENTS ARE LYNN NIEDERMEIER THE 39YEAROLD FORMER VICE PRESIDENT AND DIRECTOR OF MARKETING STEVEN HASTINGS THE 38YEAROLD FORMER CHIEF OPERATING OFFICER AND CORPORATE TREASURER AND PATRICIA BELLOWS THE 33YEAROLD FORMER VICE PRESIDENT AND CORPORATE SECRETARY 9302220131 930222 BRITISH INVENTORIES FALL LONDON BRITISH MANUFACTURERS RAN DOWN THEIR INVENTORIES DURING THE FOURTH QUARTER OF LAST YEAR ACCORDING TO NEW FIGURES RELEASED BY THE CENTRAL STATISTICAL OFFICE THE DECLINE IN INVENTORIES HOWEVER WASN'T AS LARGE AS THE FALLS RECORDED DURING THE DEPTHS OF THE RECESSION IN LATE 1991 AND EARLY 1992 AND THE DATA SHOW RETAILERS AND WHOLESALERS ALLOWED THEIR STOCKS TO RISE DURING THE SAME PERIOD MANUFACTURERS' STOCKS WERE DOWN 361 MILLION 522 MILLION IN THE FOURTH QUARTER COMPARED WITH MARGINAL INCREASES DURING THE SECOND AND THIRD QUARTERS THE DECLINE IN MANUFACTURERS' STOCKS WAS PARTLY OFFSET BY A 236 MILLION RISE IN WHOLESALERS' STOCKS AND A 81 MILLION RISE IN RETAILERS' STOCKS 9302220129 930222 DIVIDEND NEWS REYNOLDS METALS CO REYNOLDS METALS CO DECLARED ITS REGULAR QUARTERLY DIVIDEND OF 45 CENTS A SHARE BUT CAUTIONED INVESTORS ABOUT FUTURE PAYMENTS THE BOARD HAS GIVEN CAREFUL CONSIDERATION TO OUR DIVIDEND LEVEL AT ITS LAST TWO MEETINGS RICHARD G HOLDER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN RICHMOND VA THE BOARD WILL CONTINUE TO REVIEW THE DIVIDEND LEVEL ON A QUARTERLY BASIS THE COMPANY ALSO SAID IT EXPECTS TO POST A LOSS FOR 1993'S FIRST QUARTER REYNOLDS HAD A LOSS OF 1521 MILLION OR 255 A SHARE IN 1992'S FIRST QUARTER INCLUDING 155 MILLION IN CHARGES BUT REYNOLDS EXPECTS GRADUAL IMPROVEMENT FOR THE REST OF THE YEAR THE DIVIDEND IS PAYABLE APRIL 1 TO STOCK OF RECORD MARCH 5 9302220128 930222 HEALTH CURING HEALTH CARE AS OUTPATIENT CARE GAINS COMMUNITIES NEED TO TRIM THEIR EXCESS HOSPITAL BEDS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL MOLINE ILL ON A BUSY DAY TRINITY MEDICAL CENTER CAN HOUSE MORE THAN 750 OVERNIGHT PATIENTS IN ITS HOSPITALS HERE AND IN NEIGHBORING ROCK ISLAND TROUBLE IS THERE AREN'T MANY BUSY DAYS AT ONE OF ITS TWO SITES TRINITY HAS TURNED A RESPIRATORY THERAPY SECTION INTO ADMINISTRATIVE OFFICES BECAUSE PATIENT USAGE HAS DROPPED SO MUCH ACROSS THE STREET A SURGICAL RECOVERY WARD IS SO EMPTY THAT TRINITY LETS PATIENTS' HEALTHY VISITORS SLEEP THERE FOR JUST 20 A NIGHT IN THE STARKEST SIGN OF OVERCAPACITY TRINITY HAS GUTTED THE ENTIRE SIXTH FLOOR OF ONE OF ITS MOLINE TOWERS AND IS USING IT AS A STORAGE AREA FOR OLD BEDS AND WHEELCHAIRS WE'VE GOT TOO MANY INPATIENT BEDS CONCEDES TRINITY'S PRESIDENT ERIC CROWELL HE OVERSEES WHAT USED TO BE THREE SEPARATE HOSPITALS WHICH WERE BROUGHT TOGETHER BY MERGERS IN 1989 AND 1992 NOW MR CROWELL SAYS HIS MISSION IS TO SHRINK TRINITY TO A 450BED HOSPITAL DIVIDED BETWEEN TWO SITES OVER THE NEXT THREE OR FOUR YEARS MOLINE IS ONE OF THE FEW CITIES TAKING THE PAINFUL NECESSARY STEPS TO ADDRESS A CHRONIC HEALTHCARE PROBLEM OVERCAPACITY IN THE HOSPITAL INDUSTRY ON ANY GIVEN NIGHT ROUGHLY 310000 OF THE NATION'S 925000 COMMUNITY HOSPITAL BEDS ARE EMPTY ACCORDING TO AMERICAN HOSPITAL ASSOCIATION STATISTICS THE ASSOCIATION CALCULATES THAT HOSPITALS' AVERAGE OCCUPANCY RATE STOOD AT JUST 661 IN 1991 DOWN FROM 76 IN 1981 THOSE VACANT BEDS AREN'T CHEAP THEY EACH COST 30000 TO 40000 A YEAR IN MAINTENANCE STAFFING AND DEPRECIATION CHARGES OR ABOUT 15 OF THE COST OF A FULL BED SAYS GERARD ANDERSON DIRECTOR OF THE CENTER FOR HOSPITAL FINANCE AND MANAGEMENT AT THE JOHNS HOPKINS HEALTH INSTITUTIONS HE ESTIMATES HOSPITALS NATIONWIDE HAVE 200000 MORE BEDS THAN THEY NEED TO MEET PEAK DEMAND THE COST OF THE EXCESS BEDS 6 BILLION TO 8 BILLION A YEAR WITH SOARING HEALTHCARE COSTS UNDER ATTACK PLENTY OF THEORISTS HOSPITAL ADMINISTRATORS AND POLICY MAKERS ARE LOOKING FOR WAYS TO REDUCE THE GLUT OF HOSPITAL BEDS ONE POSSIBLE REMEDY WOULD BE TO ACCELERATE THE CONVERSION OF BED SPACE TO OTHER USES SUCH AS NURSING CARE OR OUTPATIENT SERVICES WHICH ARE IN GREATER DEMAND ANOTHER PROPOSED SOLUTION WOULD BE AN INCREASE IN HOSPITAL MERGERS OR CLOSINGS OFTEN THOUGH THERE'S WIDE RESISTANCE TO CUTBACKS IN PART BECAUSE NEARLY THREEQUARTERS OF US HOSPITALS OPERATE ON A NOTFORPROFIT BASIS RATHER THAN BEING JUDGED BY THEIR NET INCOME HOSPITALS ARE OFTEN HELD ACCOUNTABLE TO MORE CIVICMINDED STANDARDS LOCAL COMMUNITIES LIKE TO HAVE HOSPITALS SAYS JOSHUA WEINER A HEALTHCARE ANALYST AT THE BROOKINGS INSTITUTION HOSPITALS ARE OFTEN AMONG A TOWN'S LARGEST EMPLOYERS THEY CAN ALSO GENERALLY COUNT ON BACKING FROM A WIDE RANGE OF CIVIC LEADERS WHO SIT ON THEIR BOARDS DURING THE PAST YEAR BOSTON'S BETH ISRAEL HOSPITAL HAS CLOSED TWO WARDS WITH A TOTAL OF 34 BEDS SHRINKING ITS CAPACITY TO 470 BEDS EVERYONE RECOGNIZED THAT IT HAD TO BE DONE SAYS MITCHELL T RABKIN THE HOSPITAL'S PRESIDENT WE AREN'T FIRING ANYONE BUT IT'S ALWAYS DISTRESSING TO A WELLFUNCTIONING UNIT TO DISRUPT THE SOCIOLOGY OF PEOPLE WORKING TOGETHER BETH ISRAEL A MAJOR NOTFORPROFIT TEACHING HOSPITAL HAS AN UNUSUALLY HIGH OCCUPANCY RATE OF MORE THAN 80 EVEN SO DR RABKIN SAYS HIS HOSPITAL HAD UNDERUTILIZED WARDS THAT'S BECAUSE CHANGING REIMBURSEMENT PRACTICES AND WIDERANGING ADVANCES IN MEDICAL TREATMENT MEAN THAT PATIENTS AREN'T HOSPITALIZED FOR AS LONG AS IN THE PAST EVEN WHEN MUCH LOWER OCCUPANCY RATES COMPEL HOSPITAL ADMINISTRATORS TO RETRENCH INERTIA CAN DELAY CUTBACKS FOR YEARS FLINT MICH FOR EXAMPLE HAS FOUR MAJOR HOSPITALS AND SEVERAL SMALLER ONES OPERATING A TOTAL OF 2000 BEDS IN A TOWN OF JUST 168000 PEOPLE OCCUPANCY RATES AT THE LARGE HOSPITALS AVERAGE 50 THIS COMMUNITY HAS TOO MANY HOSPITALS AND TOO MANY BEDS SAYS YOUNG SUH PRESIDENT OF A NOTFORPROFIT GROUP OF FOUR FLINT HOSPITALS GENESIS HEALTH SYSTEM HIS GROUP PLANS TO ADDRESS THAT BY REPLACING ITS FACILITIES WITH A SINGLE NEW HOSPITAL THAT WILL CUT ITS BED COUNT IN HALF TO 439 OTHER FLINT HOSPITALS ARE FIGHTING HIS PLAN HOWEVER AND MR SUH'S MOST OPTIMISTIC GUESS IS THAT THE SWITCHOVER WILL TAKE FOUR YEARS MEANWHILE GENESIS IS HOLDING ON TO ITS FULL COMPLEMENT OF LICENSED BEDS WHICH IT PLANS TO SURRENDER GRADUALLY AS LOCAL AUTHORITIES CLEAR THE WAY FOR THE NEW HOSPITAL TO BE BUILT AMONG GENESIS'S PROPERTIES IS A 70BED FACILITY GENESEE MEMORIAL HOSPITAL THAT BY ONE MEASURE IS AMERICA'S EMPTIEST HOSPITAL IN 1991 THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE GENESEE MEMORIAL HAD AN OVERNIGHT OCCUPANCY RATE OF LESS THAN 1 FOR ITS BEDS ACCORDING TO HCIA INC A MEDICAL DATA CONCERN THAT IS LOWER THAN ANY OF THE OTHER 5300 HOSPITALS TRACKED BY HCIA GENESEE MEMORIAL ISN'T QUITE THE GHOST TOWN THAT ITS OVERNIGHT OCCUPANCY RATE WOULD SUGGEST MR SUH SAYS IN RECENT YEARS THE HOSPITAL HAS SWITCHED ITS FOCUS TO OUTPATIENT CARE SUCH AS ONEDAY FOOT AND EYE SURGERY THOSE PATIENTS DON'T SHOW UP AS OVERNIGHT OCCUPANTS EVEN THOUGH THEY ARE MAJOR REVENUE SOURCES STILL MR SUH ACKNOWLEDGES WE NEED TO DRASTICALLY REDUCE THE NUMBER OF BEDS SOME HOSPITALS PARTICULARLY THOSE OPERATED FOR PROFIT HAVE BEEN QUICK TO FIND WAYS TO MAKE UP FOR THE LOST REVENUE REPRESENTED BY EMPTY BEDS HEALTHTRUST INC A NASHVILLE TENN OPERATOR OF 81 FORPROFIT HOSPITALS IS SOLIDLY PROFITABLE DESPITE AN AVERAGE OCCUPANCY RATE OF JUST 405 LAST YEAR OCCUPANCY RATES ARE AN ANTIQUATED MEASURE OF HOW A HOSPITAL IS PERFORMING ASSERTS HEALTHTRUST'S CHIEF OPERATING OFFICER W HUDSON CONNERY JR OVERNIGHT OCCUPANCY RATES DON'T TAKE NOTE OF OUTPATIENT SERVICES HE OBSERVES AND THAT HAS BEEN A BIG AND GROWING REVENUE SOURCE FOR CHAINS LIKE HEALTHTRUST GALLBLADDER REMOVAL USED TO MEAN A SEVENDAY STAY IN THE HOSPITAL MR CONNERY OBSERVES NOW IT'S DONE ON AN OUTPATIENT BASIS HERNIA OPERATIONS CHEMOTHERAPY AND A LOT OF OTHER MEDICAL PROCEDURES NO LONGER REQUIRE OVERNIGHT STAYS FOR PATIENTS DECADES AGO INPATIENT SERVICE MIGHT HAVE ACCOUNTED FOR 95 OF A HOSPITAL'S REVENUE MR CONNERY SAYS NOW AT SOME HEALTHTRUST HOSPITALS INPATIENT SERVICES ACCOUNT FOR LESS THAN HALF OF REVENUE THE REST IS OUTPATIENT THE HOSPITALS HERE IN MOLINE/ROCK ISLAND PROVIDE CLEAR EVIDENCE THAT FOR MANY NOTFORPROFIT HOSPITALS ADJUSTING TO A WORLD WITH FEWER OVERNIGHT PATIENTS REQUIRES WRENCHING CHANGES IN STRATEGY FOR EXAMPLE AS RECENTLY AS 1991 BOTH OF THE TOWNS' TWO MAIN LOCAL HOSPITALS WERE PREPARED TO EMBARK ON MAJOR CAPITAL SPENDING PROGRAMS THE OUTLAYS WOULD HAVE TRIGGERED A COSTLY BATTLE FOR MARKET SHARE THAT TRINITY'S MR CROWELL SAYS WOULD HAVE AMOUNTED TO CHASING A DECREASING NUMBER OF PATIENTS AT EVERHIGHER COST AS MERGER TALKS BEGAN IN MID1991 OFFICIALS REALIZED THEY COULD MODERNIZE AT MUCH LOWER COST AND ELIMINATE EXCESS CAPACITY BY WORKING TOGETHER TRINITY ESTIMATES THE COMBINED HOSPITALS WILL SPEND 40 MILLION LESS OVER THE NEXT 10 YEARS BY ELIMINATING DUPLICATIVE PROGRAMS ALREADY THE COMBINED HOSPITALS ARE LOOKING FOR WAYS TO CONSOLIDATE DEPARTMENTS SUCH AS OBSTETRICS CARDIOVASCULAR SURGERY AND PSYCHIATRIC CARE INTO ONE FACILITY RATHER THAN KEEPING DUPLICATE MIDSIZE FACILITIES AT BOTH SUCH CHANGES WILL BRING EFFICIENCIES IN SCHEDULING NURSES AND DOCTORS OFFICIALS SAY ALL TOLD THEY MAY LET TRINITY SHRINK ITS 2400PERSON WORK FORCE BY 10 OR MORE THROUGH ATTRITION IN THE NEXT FEW YEARS OFFICIALS SAY EVEN SO MR CROWELL THINKS FURTHER MERGERS AND SHRINKAGE MAY LIE AHEAD FOR HIS REGION WE'RE NOT IN THE BUSINESS OF FILLING BEDS ANYMORE HE SAYS NOW WE'RE BEING JUDGED BY OUR ABILITY TO INTEGRATE INPATIENT AND OUTPATIENT CARE PUT EMPTY HOSPITAL BEDS TO NEW USES SUCH AS NURSING CARE WHERE DEMAND IS GREATER MERGE LOWOCCUPANCY HOSPITALS WHILE CUTTING CAPACITY CLOSE THE MOST UNDERUSED HOSPITALS 9302220127 930222 EUROPE'S ECONOMIC DOWNTURN MAKES IT A GOOD YEAR TO SAMPLE WINE MARKET BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS IF YOU LIKE TO COMBINE BUSINESS WITH PLEASURE HERE IS A WAY TO DO IT INVEST IN RED WINE LIKE MANY LUXURY GOODS HIGH QUALITY WINE HAS BEEN A VICTIM OF THE ECONOMIC DOWNTURN IN EUROPE WITH SLUGGISH DEMAND AND BANKRUPT COLLECTORS AUCTIONING OFF PRECIOUS BOTTLES WINE PRICES HAVE FALLEN A FEW DUSTY CASES MIGHT BE A BARGAIN AT THE MOMENT THERE IS JUST ONE RECIPE TO BUY RECOMMENDS FRANZ J WERMUTH HEAD OF THE WINE DEPARTMENT AT AUKTIONSHAUS STEINFELS IN ZURICH WHO HAS THE MONEY SHOULD GET IN NOW YOU HAVE GOOD RETURNS ON YOUR INVESTMENT AGREES HIS COLLEAGUE PAUL BOWKER AT CHRISTIE'S INTERNATIONAL PLC IN LONDON WHERE WINE AUCTIONS ARE HELD TWICE A MONTH WINE IS A SELFAPPRECIATING ASSET IT GETS MORE RARE ALL THE TIME HOWEVER EVEN THOUGH CLASSY WINES MAY TURN INTO TIMELESS TREASURES INVESTING IN THEM IS RISKY THE NEW INVESTOR SHOULD CONCENTRATE ON RARE WINES THAT DO NOT LOSE VALUE OVER TIME SUCH AS THE FIRST FEW GROWTHS OR PREMIER CRU OF RED BORDEAUX THESE FAMOUS WINES LIKE CHATEAU MARGAUX CHATEAU LATOUR OR CHATEAU MOUTONROTHSCHILD ARE KNOWN FOR THEIR LONGEVITY AND ARE EASY TO VALUE BECAUSE THEY ARE RANKED ACCORDING TO QUALITY THIS CLASSIFICATION DATES BACK TO 1855 AND HAS BEEN ALTERED ONLY ONCE SINCE THEN GOOD WINES ARE BECOMING STATUS SYMBOLS SAYS DIETER HACKEMANN A GERMAN WINE DEALER FROM DORTMUND THE WORLD'S TOP WINES CONSTANTLY GO UP IN PRICE BECAUSE THEY CAN'T BE REPRODUCED BUT THIS CONCERNS ONLY 100 TO 200 OF THE AROUND 100000 WINERIES IN THE WORLD THE CARDINAL FACTOR OF COURSE IS THE VINTAGE AT THE FRANCIS BERNARD WINE STORE IN BRUSSELS A MOUTONROTHSCHILD FROM 1956 COSTS 69000 BELGIAN FRANCS 2053 MADE ONE YEAR LATER THE SAME WINE IS VALUED AT ONLY 17000 BELGIAN FRANCS WHATEVER THE VINTAGE HOWEVER DON'T BUY IT UNLESS YOU KNOW IT HAS BEEN STORED PROPERLY SOME STORES AND INVESTORS WON'T BUY FROM PRIVATE COLLECTORS FOR FEAR THEIR WINE HAS TURNED TO VINEGAR SELLING EVEN A VALUABLE WINE THEREFORE CAN BE DIFFICULT FOR THE PRIVATE INVESTOR WHO LACKS CONNECTIONS TO AUCTION HOUSES OR OTHER POTENTIAL BUYERS YOU CAN PULL OFF A COUP BUT IT DEPENDS ON MANY FACTORS AND YOU ALSO HAVE TO BE LUCKY SAYS OLAF MUELLERSOPPARD A WINE WIZARD FROM DUSSELDORF WHO STARTED JAQUES' WEIN DEPOT A POPULAR CHAIN OF LOW AND MEDIUMPRICE WINE SHOPS IN GERMANY DURING THE BORDEAUX BOOM IN THE LATE 1980S UNSOPHISTICATED SPECULATORS WHOM INSIDERS CALL NONDRINKERS ACQUIRED A TASTE FOR THE MORE EXPENSIVE PRODUCT AND DROVE PRICES TO ASTRONOMICAL HEIGHTS SOME MADE THE MISTAKE OF BUYING SECONDCLASS WINES AND MOST BOUGHT TOO LATE AT THE SAME TIME THAT THE MARKET WAS FLOODED WITH THE STRONG VINTAGES IN THE PERIOD FROM 1988 TO 1990 THE DOLLAR FELL AND DEMAND FLATTENED WITH THE ECONOMIC SLOWDOWN IN EUROPE THESE UNFORTUNATE INVESTORS' COLLECTIONS LOST MARKET VALUE THEY ARE TODAY'S GOOD DEALS THE SECRET TO MAKING MONEY WITH WINE IS PATIENCE IF YOU WANT TO SPECULATE ON WINE PRICES IT HAS TO BE A LONGTERM THING SAYS MR BOWKER THE WINE SPECIALIST AT CHRISTIE'S IN 1975 THE AUCTION PRICE FOR A CASE OF 1961 CHATEAU MOUTONROTHSCHILD FOR INSTANCE WAS 215 31089 AT CURRENT EXCHANGE RATES TODAY THE SAME WINE COSTS 2300 THE CHALLENGE IS NEITHER TO DRINK NOR SELL THE WINE UNTIL PRICES HAVE FULLY RECOVERED DON'T WAIT UNTIL THINGS ARE GOING BAD AGAIN SAYS THE SWISS AUCTIONEER MR WERMUTH YOU HAVE TO SELL ANTICYCLICALLY THE NEXT TRICK IN DEALING WITH WINE IS BUYING EARLY BETWEEN MIDAUGUST AND THE HARVEST IN THE FALL THE PRICE OFTEN DOUBLES YOU CAN MAKE A LOT OF MONEY IF YOU BUY YOUNG WINE FROM SERIOUS DEALERS AND LET IT SIT FOR FIVE YEARS BEFORE YOU SELL IT SAYS EBERHARD HARDY A BERLIN WINE DEALER WHO SUPPLIES BIRTHYEAR BOTTLES TO THE PARTIES OF GERMANY'S RICH AND FAMOUS AND WHEN YOU REALIZE IT IS NOT DEVELOPING WELL GET RID OF IT SPECULATION WITH WINE BEGAN WITH SUBSCRIPTION SALES IN THE EARLY 1980S UNDER THIS SYSTEM ONE THIRD OF THE WINE IS SOLD RIGHT AFTER THE HARVEST AND ANOTHER THIRD WHEN THE WINE COMES ON THE MARKET IN FEBRUARY DEPENDING ON HOW THE PRICE DEVELOPS THIS TRANCHE IS ALREADY PRICED HIGHER THAN THE TRANCHE SOLD HALF A YEAR EARLIER THE OTHER THIRD IS OFFERED BY THE WINERIES AT AN EVEN HIGHER PRICE TWO YEARS LATER WHEN THE COSTLY CASES ARE ACTUALLY READY FOR DRINKING OR DELIVERY IF THE GRAPES TURN OUT TO BE THE WINE OF THE CENTURY THE EARLY BUYER CAN RAKE IN HIGH SPECULATIVE GAINS WHEN THE LEGENDARY 1982 VINTAGE WAS SHIPPED IN 1985 A CASE COST BETWEEN 200 AND 300 TODAY A COLLECTOR WOULD HAVE TO PAY AS MUCH AS 900 FOR IT THE WINE MARKET IS SMALL AND CAN BE MANIPULATED EASILY IMAGINE THE 20 TOP CHATEAUS EACH PUT OUT AROUND 200000 BOTTLES SAYS MR WERMUTH THESE FOUR MILLION BOTTLES HAVE TO BE SHARED BY THE WHOLE WORLD WHEN THE WINE SPECTATOR A BIBLE FOR US WINE BUYERS RECENTLY DECLARED CHATEAU PICHONLONGUEVILLE BARON A SECOND GROWTH FROM THE PAUILLAC REGION TO BE THE WINE OF THE YEAR 1992 ITS PRICE FOR THE 1989 VINTAGE INCREASED TO 34 A BOTTLE FROM 23 WHEN IT WAS STILL IN THE BARREL A WINE'S RATING IN TURN CAN BE CLOSELY RELATED TO THE TASTER'S RELATIONSHIP TO A DEALER OR VINEYARD OR WHICH CHATEAU INVITES THE JOURNALIST FOR DINNER OR LETS HIM TAKE PICTURES OF THE BEDROOMS AS ONE ANALYST PUT IT PETERPAUL FALKENSTEIN A FREELANCE WINE WRITER FROM COLOGNE SAYS AN ADVERTISEMENT IN A WINE MAGAZINE OFFERING A HIGH PRICE FOR A WINE CAN BE ENOUGH TO DRIVE UP THE PRICE FOR THAT VINTAGE CLEVER SPECULATORS ARE SAID TO HAVE USED THIS TACTIC TO PUSH UP PRICES FOR THE BOTTLES THEY WANT TO SELL FOR SOME INFORMED WINE PURCHASES ARE LESS OF AN INVESTMENT AND MORE A WAY OF REDUCING THE COST OF AN EXPENSIVE TASTE CHRISTIE'S MR BOWKER SAYS SOME BUYERS PURCHASE 10 CASES ONLY TO SELL HALF OF THEM AFTER THEY'VE APPRECIATED THUS HELPING TO PAY FOR THE FIVE CASES THEY'VE FINISHED OFF BASICALLY IT'S SUBSIDIZING THEIR DRINKING SAYS MR BOWKER 9302220126 930222 TECHNOLOGY GAO REPORT PRAISES CANADA MEDICAL PANEL US COPY SUGGESTED WASHINGTON CITING EVIDENCE THAT A CANADIAN REGULATORY BODY HAS HELPED TO HOLD DOWN THE PRICES OF PATENTED MEDICINES THE CHAIRMAN OF THE US SENATE'S SPECIAL COMMITTEE ON AGING SAID HE WILL SUGGEST THAT A SIMILAR BOARD BE CONSIDERED FOR THE US SEN DAVID PRYOR AN ARKANSAS DEMOCRAT AND FRIEND OF PRESIDENT CLINTON SAID HE WILL FORWARD THE RESULTS OF A STUDY BY THE GENERAL ACCOUNTING OFFICE TO HILLARY RODHAM CLINTON WHO HEADS THE ADMINISTRATION'S TASK FORCE ON HEALTH CARE THE GAO STUDY SCHEDULED FOR RELEASE TODAY EXAMINED CANADA'S PATENTED MEDICINE PRICES REVIEW BOARD A FIVEMEMBER PANEL APPOINTED TO DETERMINE WHETHER PRICES OF NEWLY PATENTED MEDICINES EXCEED PRICES OF SIMILAR MEDICINES IN SEVEN OTHER INDUSTRIALIZED COUNTRIES AND WHETHER PRICES OF EXISTING PATENTED DRUGS HAVE RISEN FASTER THAN CANADA'S CONSUMER PRICE INDEX THE GAO FOUND THAT THE BOARD HAS BEEN EFFECTIVE AT RESTRAINING PRICES OF PATENTED DRUGS PARTICULARLY PRICE INCREASES ON EXISTING DRUGS ACCORDING TO THE BOARD PRICES CHARGED TO WHOLESALERS AND DISTRIBUTORS FOR EXISTING PATENTED DRUGS FROM 1987 TO 1991 ROSE AT AN ANNUAL AVERAGE RATE OF 29 COMPARED WITH THE 47 ANNUAL RATE ALLOWED UNDER THE PRICING GUIDELINES BUT THE GAO SAID THE CANADIAN BOARD'S LACK OF POWER OVER DRUGS WITH EXPIRED OR NONEXISTENT PATENTS LIMITS ITS EFFECTIVENESS IN PRICE CONTROLS IN ADDITION THE GAO SAID THAT DESPITE LOWER PRICES ON PATENTED MEDICINES SPENDING ON PRESCRIPTION DRUGS ROSE AN AVERAGE OF 6 PER CANADIAN FROM 1987 TO 1990 9302220125 930222 POLITICS & POLICY TELEDYNE SETTLES US SUIT AGREES TO PAY 215 MILLION LOS ANGELES TELEDYNE INC AGREED TO PAY 215 MILLION TO SETTLE US GOVERNMENT CLAIMS THAT ONE OF ITS UNITS FAILED TO PROPERLY TEST SOME COMPONENTS OF FIGHTER JETS AND OTHER EQUIPMENT THE CLAIM WAS FILED BY FORMER TELEDYNE CONTROLS QUALITY AUDITOR MARIANNE D GENDRON IN JUNE 1990 UNDER THE FEDERAL FALSE CLAIMS ACT WHICH ALLOWS EMPLOYEES TO FILE SUITS AGAINST COMPANIES FOR DEFRAUDING THE GOVERNMENT ON FEDERAL CONTRACTS THE JUSTICE DEPARTMENT TOOK OVER THE CASE IN JUNE 1991 AND IT NEGOTIATED THE SETTLEMENT THAT WILL DIRECT 172 MILLION TO GOVERNMENT COFFERS AND 430000 TO MS GENDRON MS GENDRON'S ATTORNEY WILLIAM RAMSEY SAID THE PLAINTIFF PLANS OTHER LAWSUITS AGAINST THE COMPANY THAT AREN'T AFFECTED BY THE SETTLEMENT FOR EXAMPLE HE NOTED THAT WHILE THE SUIT SETTLES CLAIMS FOR FAILURES TO TEST PRINTED WIRING CIRCUITS FOR F14 TOMCAT FIGHTERS IT DOESN'T SETTLE SUCH CLAIMS FOR THE C17 MILITARY TRANSPORT A STATEMENT BY TELEDYNE SAID IT HAD AGREED TO PAY THOSE AMOUNTS WITHOUT ADMISSION OF WRONGDOING AND IT HAS RECEIVED A LETTER FROM FEDERAL ATTORNEYS WHO SAY THEY ARE DECLINING CRIMINAL PROSECUTION OF THE ISSUES EXPLORED IN THE CIVIL SUIT TELEDYNE SAID THE COMPANY WILL VIGOROUSLY DEFEND AGAINST ANY FURTHER ACTIONS BY MS GENDRON IN NEW YORK STOCK EXCHANGE TRADING FRIDAY TELEDYNE GAINED 150 TO 2125 9302220124 930222 MARKETING & MEDIA VAIL MIFFED AT LOSS OF NO 1 RANKING IN SKIER SURVEY PRINTED FAKE BALLOTS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL COLORADANS ARE CALLING IT SNOWGATE BUT VAIL ASSOCIATES INC THE OWNER OF VAIL AND BEAVER CREEK SKI RESORTS CALLS IT DOWNRIGHT EMBARRASSING IN A MOVE THAT VAIL'S CRITICS BELIEVE WAS INTENDED TO BOOST THE RESORTS' RATINGS IN AN ANNUAL SKI MAGAZINE SURVEY A VAIL EXECUTIVE ARRANGED TO PRINT THOUSANDS OF FAKE SURVEY BALLOTS THAT ARE ALMOST INDISTINGUISHABLE FROM THE REAL THING RIGHT DOWN TO THE POSTAL CODE THE COMPANY HAD PLANNED TO HAND THEM OUT TO CUSTOMERS AT THE MOUNTAINS BUT DECIDED AGAINST IT AFTER WORD OF THE EFFORT LEAKED OUT THEY SAT HERE AND SAT HERE AND SAT HERE BUT WE NEVER DISTRIBUTED THEM SAID KENT MYERS SENIOR VICE PRESIDENT OF THE RESORT COMPANY IF THERE IS ANY IMPLICATION THAT I'VE OFFENDED OUR COMMUNITY OUR ASSOCIATES OUR GUESTS WE'LL ABSOLUTELY APOLOGIZE THE BROUHAHA WHICH BEGAN AFTER VAIL LOST ITS LONGTIME NO 1 RATING LAST YEAR IN A READER SURVEY BY SNOW COUNTRY MAGAZINE SHOWS HOW IMPORTANT SUCH POLLS HAVE BECOME FOR SKI RESORTS IN RECENT YEARS WITH HIGH RANKINGS MEANING MILLIONS OF DOLLARS IN ADDITIONAL REVENUE FOR THE WINNERS BUT IT ALSO RAISES QUESTIONS ABOUT THE METHODOLOGY OF THE SURVEYS AND WHETHER THE RESULTS SIGNIFY MUCH AT ALL I THINK THERE ARE SOME REAL PROBLEMS WITH THESE BECAUSE OF THE WAY PEOPLE GET THE BALLOTS AGREES JERRY JONE A SKI INDUSTRY CONSULTANT WHO THINKS THE DISTRIBUTION SYSTEM FAVORS THE BIG RESORTS LIKE VAIL UNDER THE CURRENT SYSTEM I DON'T THINK IT IS FAIR TO ANY AREA WITH A SMALL NUMBER OF SEASON PASSHOLDERS OR TO SMALLER AREAS THE FLAP BEGAN LAST SEPTEMBER WHEN SNOW COUNTRY'S ANNUAL SURVEY RANKING READERS' FAVORITE NORTH AMERICAN SKI RESORTS PLACED WHISTLER/BLACKCOMB IN BRITISH COLUMBIA CANADA AS NO 1 AND VAIL IN THE UNACCUSTOMED SPOT OF RUNNERUP MR MYERS OF VAIL IMMEDIATELY COMPLAINED TO TOM BROWN SNOW COUNTRY'S PUBLISHER ARGUING THAT THE SURVEY DOESN'T ADEQUATELY MEASURE THE RIGHT THINGS SUCH AS SNOW CONDITION OR ACCESS AND ISN'T DISTRIBUTED IN A FAIR MANNER HE ARGUED FOR INSTANCE THAT THE MAGAZINE HAS IN THE PAST ENCOURAGED READERS TO COPY THE BALLOTS AND PASS THEM TO FRIENDS SO THE EDITORS DON'T KNOW WHO IS FILLING THEM OUT THE SURVEY DOES ASK READERS TO RATE THE TERRAIN CROWDS GROOMING SERVICES LODGING FOOD SCENERY AND NIGHT LIFE AT THE RESORTS WHISTLER A RESORT WITH GOOD AIR CONNECTIONS TO JAPAN HAS RATED HIGHLY LARGELY BECAUSE OF ITS HUGE AND VARIED TERRAIN GOOD LIFTS NEARBY LODGING AND VERTICAL DROP THE RESORT USED THE RATING IN AD CAMPAIGNS BUT BAD SNOWS THIS YEAR KEPT IT FROM CAPITALIZING ON THE RATING UNAPPEASED AFTER HIS MEETING WITH MR BROWN MR MYERS DECIDED TO FIGHT BACK WITH AN UNCONVENTIONAL TACTIC WHEN THE BALLOTS APPEARED IN THE FEBRUARY SNOW COUNTRY ISSUE HE CONTACTED VAIL'S ADVERTISING AGENCY IN SEATTLE AND ASKED IT TO PRINT SEVERAL BOXES FULL OF FAUX SURVEY BALLOTS WHICH DIFFER FROM THE REAL ONES ONLY BY THE ABSENCE OF A PERFORATED EDGE SOMETIME AFTER BEING CONTACTED BY THIS NEWSPAPER ABOUT THE PLANS MR MYERS DROPPED HIS PLAN TO DISTRIBUTE THEM STILL SNOW COUNTRY SENIOR EDITOR RON RUDOLPH SAID THE MAGAZINE'S EDITORS WILL BE ON THE LOOKOUT FOR THE FAKE BALLOTS IT PLANS TO TALLY ANY REPRINTS SEPARATELY AND PROBABLY WON'T COUNT THEM IF THEY SKEW THE RESULTS HE SAID OTHER SKI RESORT EXECUTIVES PROFESSED TO BE SURPRISED BY VAIL'S TACTICS THE SURVEY ISN'T THAT IMPORTANT SAID ROD HANNA DIRECTOR OF PUBLIC RELATIONS AND ADVERTISING FOR STEAMBOAT SKI RESORT ALSO IN COLORADO IT HAS SOME INFLUENCE BUT IT ISN'T THE KEY TO OUR SUCCESS STEAMBOAT RANKED FOURTH ON THE SNOW COUNTRY SURVEY OF THE TOP 50 RESORTS THE SURVEYS HAVE RISEN IN IMPORTANCE AS THE MAGAZINES HAVE USED THEM AS PROMOTIONAL TOOLS SENDING OUT PRESS RELEASES ANNOUNCING THE RESULTS BEFORE THEY ARE PUBLISHED IN THE MAGAZINES THOSE PRESS RELEASES GENERATE NEWS STORIES WHICH CAN LEAD TO BOTH MAGAZINE SALES AND RESORT RESERVATIONS ONE POLL VAIL ISN'T QUIBBLING ABOUT AT LEAST YET IS THE ONE PUBLISHED BY SKI MAGAZINE WHICH LISTED THE COLORADO RESORT AS NO 1 IN 1992 SENIOR EDITOR LISA GOSSELIN SAYS THE MAGAZINE MAILS ITS SURVEYS TO 3000 RANDOMLY SELECTED SUBSCRIBERS AND DOESN'T ALLOW THE SURVEY TO BE COPIED OR FILLED OUT BY ANYONE ELSE WE TRY TO BE VERY CAREFUL TO BE AS FAIR AS POSSIBLE SHE SAID WE WOULDN'T KEEP DOING THESE IF WE DIDN'T FEEL THERE WAS SOME EDITORIAL VALUE TO OUR READERS EVEN IF VAIL HAD SUCCEEDED IN STUFFING THE BALLOT BOX THERE'S NO ASSURANCE IT WOULD HAVE HELPED THE RESORT A COUPLE OF YEARS AGO A SMALL RESORT IN THE EAST MADE DOZENS OF COPIES OF THE SNOW COUNTRY BALLOT ON A COPY MACHINE AND PASSED THEM AROUND TO ITS SEASON TICKET HOLDERS AND EMPLOYEES WHEN THEY CAME INTO SNOW COUNTRY'S OFFICES HOWEVER THE COPIED BALLOTS RANKED THE RESORT LOWER ON AVERAGE THAN THE ORIGINAL BALLOTS DID SAYS MR RUDOLPH 9302220123 930222 WHO'S NEWS COMPREHENSIVE CARE CORP COMPREHENSIVE CARE CORP ST LOUIS RICHARD C PETERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ACCESSCARE UNIT IN TAMPA FLA WAS NAMED INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS HEALTHCARE PROVIDER MR PETERS SUCCEEDS RICHARD W WOLFE WHO RESIGNED EARLIER AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR 9302220122 930222 INSURANCE RATES TO HOLD STEADY ANALYSTS SAY ANY BROAD UPTURN IN FEES COULD BE A YEAR AWAY STOCKS START TO DECLINE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CONTRARY TO EXPECTATIONS PROPERTY AND CASUALTY INSURANCE RATES HAVEN'T RISEN IN THE WAKE OF HURRICANE ANDREW AND ANALYSTS NOW SAY INCREASES COULD BE A YEAR OFF ONLY A FEW MONTHS AGO A TURN IN THE PRICING CYCLE THAT HAS ERODED INSURANCE PROFITS FOR SIX YEARS SEEMED IMMINENT PROMPTING INVESTORS TO BID UP PRICES OF PROPERTY AND CASUALTY INSURERS NOW PARTLY BECAUSE COMPANIES FAILED TO AGGRESSIVELY ADD TO RESERVES AT YEAR END AS EXPECTED ANALYSTS SAY A BROAD UPTURN IN INSURANCE RATES COULD BE A YEAR AWAY THEY ADD THAT STOCK PRICES AT LEAST IN THE NEAR TERM MAY HAVE PEAKED THE CYCLE WILL TURN SOMEDAY BUT WE MIGHT ALL CELEBRATE ANOTHER BIRTHDAY BEFORE IT HAPPENS SAID RONALD FRANK AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO INDEED INVESTORS SEEM TO SHARE THE SENTIMENT PROPERTY AND CASUALTY STOCKS WHICH HAD SCORED HUGE GAINS AFTER ANDREW HAVE BEGUN TO PULL BACK LAST WEEK FOR INSTANCE AMERICAN INTERNATIONAL GROUP INC FELL TO 11725 FROM 123 CHUBB CORP SLIPPED TO 89 FROM 9225 SINCE 1987 PROPERTY AND CASUALTY INSURANCE COMPANIES HAVE BEEN SLASHING PREMIUMS BY AS MUCH AS 40 IN A BID TO GAIN MARKET SHARE FOR EXAMPLE AN ENGINEERING FIRM THAT PAID 40000 FOR 1 MILLION IN LIABILITY COVERAGE IN 1986 WOULD PAY ABOUT 24000 TODAY AND A HOTEL CHAIN THAT PAID 504000 WOULD NOW PAY ABOUT 378000 ACCORDING TO MARSH & MCLENNAN COS A NEW YORK INSURANCE BROKER INSURERS HAVE BEEN SELLING SOME POLICIES AT A LOSS ANALYSTS BELIEVED HURRICANE ANDREW WHICH RAVAGED FLORIDA AND LOUISIANA IN LATE AUGUST WOULD PUT AN END TO PRICE WAR INSURERS LOST AS MUCH AS 165 BILLION ON THE STORM AND ANALYSTS BELIEVED THEY WOULD RAISE PRICES TO RECOUP THEIR LOSSES A LEAKED INTERNAL MEMO URGING PRICE RISES WRITTEN BY AMERICAN INTERNATIONAL GROUP EXECUTIVE VICE PRESIDENT JEFFREY GREENBURG HELPED FUEL EXPECTATIONS THEN THERE WAS THE INDIRECT IMPACT OF ANDREW ANALYSTS BELIEVED THAT BECAUSE ANDREW MADE 1992 A DISASTER FOR INSURANCE COMPANY PROFITS INSURERS MIGHT FINALLY RECOGNIZE WHAT MOST INSURANCE EXPERTS SAY ARE HUGE LOSSES ON ASBESTOS AND ENVIRONMENTAL CLAIMS OBVIOUSLY ONE FINE DAY THE FACT THEY ARE UNDERRESERVED IS GOING TO CATCH UP WITH COMPANIES MR FRANK SAID BUT WHEN EARNINGS ANNOUNCEMENTS BEGAN OVER THE PAST FEW WEEKS INVESTORS WERE DISAPPOINTED AETNA LIFE & CASUALTY CORP IN HARTFORD CONN ANNOUNCED ADDITIONAL RESERVES FOR POLLUTION AND ASBESTOS EXPOSURES AND CNA CORP IN CHICAGO ANNOUNCED A 15 BILLION RESERVE ADDITION FOR POSSIBLE ASBESTOS CLAIMS OTHER COMPANIES HOWEVER FAILED TO FOLLOW AND IN THE CASE OF CNA THE COMPANY TOOK PAINS TO INDICATE ITS MAMMOTH LOSS WOULD NOT DEPLETE ITS SURPLUS ANALYSTS SAY COMPANIES WON'T FEEL PRESSURE TO RAISE PRICES UNTIL SURPLUS OR NET WORTH DECLINES LAST YEAR DESPITE ANDREW THE SURPLUS OF THE PROPERTY AND CASUALTY INDUSTRY WAS FLAT AT ABOUT 160 BILLION THAT'S BECAUSE THE INDUSTRY MADE UP ITS HURRICANE LOSSES WITH INVESTMENT PROFITS HELPED BY THE SOARING BOND MARKET TO BE SURE CATASTROPHE REINSURANCE PRICES HAVE SOARED IN THE WAKE OF ANDREW AND PROPERTY INSURANCE PRICES HAVE RISEN IN SOME MARKETS ALTHOUGH NOT SPECTACULARLY IN ADDITION FLORIDA AND HAWAII HAVE SEEN SHORTAGES DEVELOP ON HOMEOWNERS INSURANCE BUT THE PRICE OF CASUALTY INSURANCE HAS BEEN FLAT ACCORDING TO A SURVEY BY GOLDMAN SACHS & CO THERE'S VERY LITTLE SIGN THAT RATES ARE GOING UP SAID GOLDMAN SACHS ANALYST THOMAS CHOLNOKY PEOPLE ARE TALKING ABOUT RATES GOING UP BUT I DON'T SEE VERY MUCH HAPPENING MR FRANK REMAINS CONVINCED THAT THE PRICING CYCLE WILL TURN BUT HE BELIEVES IT COULD TAKE WHAT HE CALLS A CASUALTY MARKET CATASTROPHE SUCH AS A REGULATORY ORDER TO RESERVE FOR POLLUTION CLAIMS BUT HE WORRIES THAT IN THE NEAR TERM THE CASUALTY MARKET COULD BECOME EVEN MORE COMPETITIVE HE SAID COMPANIES THAT HAVE DEEMPHASIZED PROPERTY INSURANCE MIGHT REDEPLOY CAPITAL INTO CASUALTY LINES THAT WOULD LEAD TO MORE PRICE CUTTING ANALYST G ALAN ZIMMERMAN OF PRUDENTIAL SECURITIES INC TAKES AN OPPOSITE VIEW BELIEVING CASUALTY PRICES WILL RISE PRECISELY BECAUSE OF THE CUTBACKS IN PROPERTY LINES IN A RECENT REPORT HE WROTE INSURERS MIGHT CHARGE MORE FOR CASUALTY COVERAGE IN EXCHANGE FOR PROVIDING PROPERTY COVERAGE WE BELIEVE THAT PROPERTY INSURANCE WILL BE SOLD MAINLY TO THOSE INSUREDS WHO ARE WILLING TO ALSO PAY HIGHER PRICES FOR THEIR CASUALTY COVERAGES HE WROTE HE BELIEVES THERE WILL BE A MEANINGFUL INCREASE IN COMPANY PROFITS BUT NOT UNTIL 1994 9302220121 930222 S&P CUTS PACIFICORP RATINGS BUT MOODY'S REVIEWS FOR UPGRADES PORTLAND ORE STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON SENIOR DEBT AND PREFERRED STOCK FOR PACIFICORP AND RELATED COMPANIES WHILE MOODY'S INVESTORS SERVICE SAID IT HAD PLACED MANY OF THE SAME ISSUES UNDER REVIEW FOR A POSSIBLE RATINGS UPGRADE THE CREDITRATING COMPANY ACTIONS AFFECTING ABOUT 4 BILLION IN DEBT CAME JUST A DAY AFTER PACIFICORP A UTILITY AND MINING HOLDING COMPANY CUT ITS DIVIDEND BY 30 AND ANNOUNCED AN AGREEMENT TO SELL ITS NERCO INC NATURALRESOURCE SUBSIDIARY IT ALSO POSTED A ONETIME LOSS OF 2988 MILLION THAT REFLECTS ONETIME CHARGES ACROSS ITS OPERATIONS S&P CITED PACIFICORP'S FAILURE TO ACHIEVE FINANCIAL PROTECTION IT HAD ANTICIPATED PLUS PROBLEMS WITH SOME BUSINESSES AND HIGH LEVELS OF PLANNED CAPITAL SPENDING IT LOWERED RATINGS ON PACIFICORP SENIOR SECURED DEBT TO SINGLEAMINUS FROM SINGLEA ON SENIOR UNSECURED DEBT AND PREFERRED STOCK TO TRIPLEBPLUS AND ON COMMERCIAL PAPER TO A2 FROM A1 IN ADDITION PACIFICORP HOLDING'S INC'S SENIOR UNSECURED DEBT WAS LOWERED TO DOUBLEBPLUS FROM TRIPLEBMINUS AND ITS COMMERCIAL PAPER RATING WAS LOWERED TO SINGLEB FROM A3 S&P RATINGS FOR PACIFICORP FINANCIAL SERVICES ALSO WERE LOWERED MOODY'S PLACED THE RATINGS OF ALL THREE ENTITIES UNDER REVIEW FOR POSSIBLE UPGRADE PENDING THE COMPLETION OF THE PROPOSED NERCO SALE TO BRITAIN'S RTZ CORP FOR ABOUT 1 BILLION INCLUDING DEBT ASSUMPTION MOODY'S SAID CASH PROCEEDS FROM THE SALE WILL REDUCE DEBT A PACIFICORP SPOKESMAN SAID MANAGERS ARE DISAPPOINTED IN THE S&P RATING DOWNGRADE AND SUPPORT THE LOGIC BEHIND THE MOODY'S DECISION TO REVIEW FOR POSSIBLE UPGRADES 9302220120 930222 TCI TO UNVEIL PANASIAN TV JOINT VENTURE NEW ZEALAND AND SINGAPORE STATEOWNED CONCERNS TEAM FOR NEWS CHANNEL BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE TELECOMMUNICATIONS INC THE GIANT ENGLEWOOD COLO CABLETELEVISION COMPANY TELEVISION NEW ZEALAND LTD AND SINGAPORE BROADCASTING CORP ARE SET TO ANNOUNCE TUESDAY THAT THEY WILL LAUNCH A PANASIAN BUSINESSNEWS SATELLITE TV CHANNEL THIS YEAR ACCORDING TO ONE PERSON FAMILIAR WITH THE PLAN TCI AND THE TWO STATEOWNED BROADCASTERS ARE TEAMING UP WITH BUSINESS NEWS NETWORK LTD A CLOSELY HELD HONG KONG CONCERN THAT CALLED OFF A PLANNED LAUNCH OF ITS BUSINESSNEWS CHANNEL IN LATE 1991 AFTER THE COMPANY'S TAIWAN BACKERS GOT COLD FEET THE CHANNEL MARKS THE LATEST ADDITION TO A GROWING LIST OF PROJECTS SEEKING TO TAP ASIA'S POTENTIALLY LUCRATIVE SATELLITETV AND CABLETV MARKET PROMPTED IN PART BY THE SUCCESS OF HONG KONGBASED PANASIAN SATELLITE SERVICE STAR TV OTHER TELEVISION COMPANIES ARE ON THE PROWL IN THE REGION JAPAN WHICH ALREADY HAS LOTS OF CHANNELS IS TREATED AS A SEPARATE MARKET THE NEW CHANNEL WILL BE BASED IN SINGAPORE ALTHOUGH BNN HAD ORIGINALLY PLANNED TO BROADCAST FROM HONG KONG THE SERVICE WILL BE DELIVERED BY INDONESIA'S PALAPA B2P SATELLITE USING A TRANSPONDER CURRENTLY LEASED TO TV NEW ZEALAND THE PALAPA SATELLITE'S FOOTPRINT COVERS SOUTHEAST ASIA HONG KONG TAIWAN AND SOUTHERN CHINA TCI AND TV NEW ZEALAND WILL BE THE LARGEST SHAREHOLDERS IN THE VENTURE WITH BNN AND SINGAPORE BROADCASTING HOLDING SMALLER STAKES THE PERSON FAMILIAR WITH THE VENTURE SAID THE AMOUNT OF EACH PARTNER'S INVESTMENT AND THE STARTUP COST OF THE CHANNEL HASN'T BEEN DISCLOSED A TCI OFFICIAL SAID THE COMPANY IS INVOLVED IN A VENTURE WITH TV NEW ZEALAND AND SINGAPORE BROADCASTING BUT DECLINED TO ELABORATE ADDING THAT DETAILS OF THE PROJECT WILL BE ANNOUNCED THIS WEEK OFFICIALS AT TV NEW ZEALAND SINGAPORE BROADCASTING AND BNN DECLINED TO COMMENT OR COULDN'T BE REACHED THE NEW BUSINESS CHANNEL WILL EMPLOY ABOUT 100 PEOPLE IN SINGAPORE AND IT WILL CONSIST OF HALFHOUR ENGLISHLANGUAGE NEWSCASTS UPDATED AS EVENTS WARRANT INITIALLY THE CHANNEL WON'T BROADCAST 24 HOURS A DAY STAR TV THE TWOYEAROLD NETWORK BASED IN HONG KONG IS THE BESTKNOWN REGIONAL TELEVISION VENTURE IN ASIA WHILE STARTV IS OWNED BY THE FAMILY OF TYCOON LI KASHING AND HUTCHISON WHAMPOA LTD THE HONG KONG CONGLOMERATE HE CONTROLS MUCH OF THE PROGRAMMING IS SUPPLIED BY NONASIAN CONCERNS INCLUDING BRITISH BROADCASTING CORP VIACOM INC'S MTV UNIT AND TCI'S PRIME NETWORK A SPORTS SERVICE AUSTRALIA BROADCASTING CORP HAS JUST LAUNCHED AUSTRALIAN TELEVISION INTERNATIONAL A CHANNEL BEAMED AT ASIA FROM INDONESIA'S PALAPA SATELLITE TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK WHICH ALSO USES PALAPA IS MAKING A BIG PUSH INTO THE REGION HOME BOX OFFICE A UNIT OF TIME WARNER INC STARTED AN ASIAN VERSION OF ITS NAMESAKE PAYTELEVISION MOVIE CHANNEL IN JULY SO FAR AVAILABLE ONLY IN SINGAPORE HBO EXPECTS THE PAY CHANNEL WILL BE AVAILABLE IN SEVERAL OTHER COUNTRIES BY THE END OF THE YEAR THE POTENTIAL ASIAN AUDIENCE FOR SATELLITE AND CABLE CHANNELS IS VAST HBO ESTIMATES THAT EXCLUDING CHINA THE PALAPA SATELLITE CAN REACH 731 MILLION HOUSEHOLDS IN SOUTHEAST AND EAST ASIA ABOUT HALF OF WHICH OWN TELEVISION SETS IN THE US 17 MILLION OF A TOTAL OF 90 MILLION HOUSEHOLDS ARE HBO SUBSCRIBERS RISING INCOMES ENSURE THAT MOST HOUSEHOLDS IN THE REGION INCLUDING CHINA WILL OWN A TELEVISION SET BEFORE TOO LONG BUT PUMPING IN MORE CHANNELS TO ALL THOSE TV SETS BY CABLE SATELLITE OR OVER THE AIR IS COMPLICATED BY A SOMETIMES CHAOTIC REGULATORY STRUCTURE AND OTHER BARRIERS AFTER YEARS OF DISCUSSION HONG KONG MAY FINALLY GET CABLE TELEVISION LATER THIS YEAR TAIWAN HAS A BOOMING ILLEGAL CABLE INDUSTRY WHILE THE OWNERSHIP OF SATELLITE DISHES IS TIGHTLY RESTRICTED IN MALAYSIA AND SINGAPORE SINGAPORE WANTS TO BECOME A REGIONAL MEDIA HUB SNARING THE NEW BUSINESS CHANNEL JUST A FEW MONTHS AFTER LURING HBO TO THE ISLAND REPUBLIC SHOWS THAT DESPITE TIGHT CENSORSHIP RULES AND PRESS CONTROLS THE REPUBLIC MAY ACHIEVE ITS GOAL SINGAPORE LIKE MANY OTHER COUNTRIES SCREENS BOOKS MAGAZINES TELEVISION AND FILMS FOR SEXUAL CONTENT FOR EXAMPLE PLAYBOY COSMOPOLITAN AND XRATED MOVIES ARE BANNED HBO WHICH OFFERS ENTERTAINMENT DOESN'T RESIST SUCH CENSORSHIP IT CAN SIMPLY PULL AN OBJECTIONABLE PROGRAM FROM ITS SCHEDULE BUT THINGS MAY BE A BIT TRICKIER FOR A NEWS CHANNEL THE SINGAPORE GOVERNMENT HAS OBJECTED IN THE PAST TO WHAT IT DEEMS TO BE INTERFERENCE IN DOMESTIC POLITICS BY FOREIGN PUBLICATIONS AND IT RESTRICTS OR PROHIBITS OUTRIGHT THE CIRCULATION OF CERTAIN FOREIGN NEWS PUBLICATIONS THE ASIAN WALL STREET JOURNAL IS PERMITTED TO SELL 3500 COPIES A DAY IN SINGAPORE SINGAPORE BROADCASTING OFFICIALS COULDN'T BE REACHED TO COMMENT ON WHETHER THE NEW BUSINESS CHANNEL WILL BE AVAILABLE ON THE REPUBLIC'S NEW PAYTELEVISION NETWORK THE PERSON CLOSE TO THE PLANNED VENTURE SAID THE PARTNERS HOPE AND EXPECT THE CHANNEL WILL BE MADE AVAILABLE IN SINGAPORE 9302220119 930222 WHO'S NEWS ALLIED CAPITAL ADVISERS INC ALLIED CAPITAL ADVISERS INC JOHN M SCHEURER 40 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT PRIMARILY RESPONSIBLE FOR MANAGING ALLIED CAPITAL COMMERCIAL CORP THE PARENT COMPANY'S LATEST FUND HE WAS PREVIOUSLY VICE PRESIDENT 9302220118 930222 INFRASTRUCTURE INVESTMENT COMMISSION TO DISCLOSE FUNDING PLAN TOMORROW BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN AMBITIOUS PLAN TO CHANNEL BILLIONS OF INVESTMENT DOLLARS INTO INFRASTRUCTURE PROJECTS WILL BE UNVEILED TOMORROW BY A BIPARTISAN COMMISSION CREATED BY CONGRESS FASHIONED BY THE INFRASTRUCTURE INVESTMENT COMMISSION THE PLAN CALLS FOR CREATING A FEDERALLY CHARTERED CORPORATION THE NATIONAL INFRASTRUCTURE CORP TO HELP MAKE INFRASTRUCTURE INVESTMENTS ATTRACTIVE TO INSTITUTIONAL INVESTORS THROUGH SUCH METHODS AS BOND INSURANCE AND GUARANTEES THE COMMISSION ESTIMATES THAT EACH NEW ONE BILLION DOLLARS OF FEDERAL CAPITAL IN THE CORPORATION HAS THE IMMEDIATE POTENTIAL TO PROMPT 10 BILLION IN INFRASTRUCTURE PROJECT ACTIVITY THE PANEL SAYS IN ITS FINAL REPORT THE REPORT SAYS THE PROPOSED CORPORATION WHICH WOULD HAVE A LIMITED LINE OF CREDIT TO THE TREASURY AND WOULD ALSO BE EMPOWERED TO SELL ITS OONDS WILL PROVIDE A FOCAL POINT FOR INFRASTRUCTURE THAT IS ESSENTIAL TO A TIMELY EFFECTIVE NATIONAL POLICY RESPONSE TO THE INFRASTRUCTURE FINANCING CHALLENGE THE COMMISSION WAS ESTABLISHED BY CONGRESS TO FIND WAYS OF DRAWING MORE INVESTMENTS INTO SUCH PROJECTS AS HIGHWAYS BRIDGES AND SEWAGE SYSTEMS PERHAPS BRANCHING EVENTUALLY INTO SUCH HIGHTECH AREAS AS COMPUTER NETWORKS MOST PANEL MEMBERS WERE APPOINTED BY THE DEMOCRATIC AND REPUBLICAN LEADERS OF THE HOUSE AND SENATE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY A LEADING FORCE BEHIND CREATING THE PANEL IS EXPECTED TO INTRODUCE A BILL TO ENACT ITS PROPOSALS AND TO PRESS FOR INCLUSION OF KEY RECOMMENDATIONS IN THE LEGISLATIVE PACKAGE THAT WILL INCORPORATE MOST OF PRESIDENT CLINTON'S ECONOMIC PLAN MR CLINTON DURING LAST YEAR'S PRESIDENTIAL CAMPAIGN ADVOCATED A REBUILD AMERICA FUND TO LEVERAGE MONEY FOR INFRASTRUCTURE HE DIDN'T MENTION A NEW INFRASTRUCTURE AGENCY IN THE ECONOMIC PROGRAM HE OUTLINED LAST WEEK BUT COMMISSION OFFICIALS WHO HAVE BRIEFED CLINTON AIDES ON THE PANEL'S RECOMMENDATIONS REPORT RECEIVING VERY POSITIVE FEEDBACK FROM THE WHITE HOUSE PARTICULARLY THE IDEA OF LEVERAGING SUBSTANTIAL ACTIVITY WITH A LIMITED UPFRONT FEDERAL COMMITMENT A FOCUS OF THE COMMISSION IS TO FASHION INFRASTRUCTURE SECURITIES THAT WOULD BE ATTRACTIVE TO INSTITUTIONAL INVESTORS PARTICULARLY PENSION FUNDS WITH SOME 4 TRILLION IN ASSETS THE PROPOSED CORPORATION WOULD BE EMPOWERED TO INSURE INFRASTRUCTURE SECURITIES ISSUED BY STATE AND LOCAL GOVERNMENTS THUS ENHANCING THEIR CREDITWORTHINESS AND TO SELL ITS OWN DEBT SECURITIES WITH THE PROPOSED LINE OF CREDIT FROM THE TREASURY AND THE CORPORATION'S FEDERAL CHARTER THE PLAN ENVISIONS THESE SECURITIES BEING ACCORDED AGENCY STATUS BY THE CAPITAL MARKETS LIKE THE SECURITIES OF SUCH GOVERNMENTSPONSORED ENTERPRISES AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AGENCY SECURITIES ENJOY PREFERENTIAL BORROWING RATES THE COMMISSION STRESSES THAT PENSION PLAN PURCHASES OF SECURITIES INSURED OR SOLD BY THE CORPORATION WOULD BE ON A PURELY VOLUNTARY BASIS IN ACCORDANCE WITH THE FIDUCIARY DUTIES SET FORTH IN CURRENT LAWS AND RULES GOVERNING PENSION FUND INVESTMENTS PENSION FUNDS CLEARLY INDICATED THE DESIRE TO HAVE AN OPTION TO INVEST IN A NEW INFRASTRUCTURE SECURITY PAYING A COMPETITIVE TAXABLE MARKET RATE OF RETURN THE REPORT SAYS THE COMMISSION ALSO RECOMMENDS THAT FEDERAL POLICY MAKERS MODIFY RESTRICTIONS ON THE USE OF TAXEXEMPT BONDS FOR INFRASTRUCTURE PROJECTS 9302220117 930222 HOLLMAN CHEUNG CHARGED IN GOLDBULLION FRAUD CASE LOS ANGELES A MAJOR LOCAL ASIANAMERICAN GAMBLING FIGURE HAS BEEN CHARGED BY FEDERAL AUTHORITIES WITH PARTICIPATION IN AN ALLEGED GOLDBULLION FRAUD RING IN A COMPLAINT FILED IN FEDERAL DISTRICT COURT IN NEW YORK HOLLMAN CHEUNG AND SIX OTHERS WERE CHARGED WITH MASSIVE FRAUD IN WHICH MONEY TAKEN FROM CUSTOMERS FOR BULLION TRADING WOULD ACTUALLY BE KEPT BY THE DEFENDANTS THE TRADING OPERATION STAYED IN BUSINESS BY CONSTANTLY DRAWING UPON NEW CUSTOMERS PRIMARILY FROM THE CHINESE IMMIGRANT COMMUNITY SAID THE COMPLAINT THE COMPLAINT DIDN'T GIVE A DOLLAR ESTIMATE OF THE SIZE OF THE ALLEGED FRAUD MR CHEUNG COULDN'T BE REACHED FOR COMMENT IN A WALL STREET JOURNAL FRONTPAGE STORY LAST YEAR ABOUT THE RISE OF ASIAN ORGANIZED CRIME ACTIVITY IN THE US IT WAS REPORTED THAT MR CHEUNG WAS UNDER INVESTIGATION BY LAWENFORCEMENT OFFICIALS HERE FOR SUSPECTED LOANSHARKING AND EXTORTION ACTIVITIES IN CONNECTION WITH HIS POSITION AS A SENIOR OFFICIAL AT A BIG SOUTHERN CALIFORNIA CARD CASINO LAST WEEK'S CRIMINAL COMPLAINT OUT OF NEW YORK DIDN'T DEAL WITH THOSE SUSPECTED ACTIVITIES 9302220116 930222 EUROPEAN POLITICAL RISK COMPOUNDS UNCERTAINTY OF INTERNATIONAL MARKETS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AS IF A STRAIGHTFORWARD CURRENCY CRISIS WEREN'T ENOUGH TO FRET ABOUT EUROPEAN MARKETS ARE STARTING TO WINCE AS THAT OLD HOBGOBLIN CALLED POLITICAL RISK REARS ITS UGLY HEAD AGAIN WORRY NO 1 OF COURSE IS THE FRENCH PARLIAMENTARY ELECTION TO BE HELD IN TWO ROUNDS NEXT MONTH NOBODY WILL BE SURPRISED IF A COALITION OF CENTERRIGHT PARTIES TAKES OVER FROM THE GOVERNMENT OF SOCIALIST PRESIDENT FRANCOIS MITTERRAND BUT WHAT EXACTLY HAPPENS TO FRENCH INTEREST RATES CURRENTLY AT HISTORIC HIGHS IN REAL TERMS IS ANYONE'S GUESS A COHABITATION GOVERNMENT LIKELY WILL FOLLOW THE ELECTIONS AND MR MITTERRAND IS EXPECTED TO STAY ON CONTINUING THE STRUGGLE FOR GREATER EUROPEAN UNITY AND A STRONG FRANC THERE IS A RISK OF A FRANC DEVALUATION BUT IT'S A VERY SMALL RISK SAYS FLORANT BRONES EQUITY STRATEGIST AT SOCIETE GENERALE IN PARIS BUT THE MAIN POINT IS TO GET INTEREST RATES LOWER AND WE ASSUME THAT THE GERMAN BUNDESBANK IS GOING TO EASE POLICY SOON MR BRONES THINKS THE NEW FRENCH GOVERNMENT REGARDLESS OF WHO IS IN IT WILL ACT QUICKLY TO MAKE THE BANQUE DE FRANCE INDEPENDENT SUCH A MOVE WOULD HELP BOOST CONFIDENCE IN THE FRANC AND BRING FRANCE CLOSER TO FULFILLING THE REQUIREMENTS FOR EUROPEAN MONETARY UNION THAT'S THE MOST PROBABLE SCENARIO BUT EVENTS IN EUROPEAN MARKETS OVER THE PAST SIX MONTHS HAVE PROVEN THE MOST PROBABLE SCENARIO WRONG ASSET MANAGERS SHELLSHOCKED FROM WAVES OF CURRENCY DEVALUATIONS AND INTEREST RATE HIKES ARE NOW RELUCTANT TO MAKE LONGTERM PLANS EVERY TIME INVESTORS HAVE TRIED TO TAKE A FOURMONTH VIEW THINGS HAVE BLOWN APART SAYS ALISON COTTRELL INTERNATIONAL ECONOMIST AT SAMUEL MONTAGU & CO IN LONDON MS COTTRELL THINKS MOST MARKET PARTICIPANTS ARE LIMITING THEIR HORIZONS TO MAY 29 THE DAY AFTER THE LAST ROUND OF FRENCH ELECTIONS STILL THE BUSY POLITICAL CALENDAR IN EUROPE AND SHARPLY DETERIORATING ECONOMIC CONDITIONS ARE FORCING INVESTORS TO FACTOR IN INSTABILITY ACROSS EUROPE EVEN SOONER THE CLEAREST EXAMPLE OF POLITICS GETTING IN THE WAY OF INVESTMENT DECISIONS IS ITALY WHICH IS BECOMING EVER MORE ENTANGLED IN A SERIES OF CORRUPTION SCANDALS FRIDAY ONLY A WEEK OR SO AFTER INTERNATIONAL STRATEGISTS STARTED TO BE LURED BY MILAN STOCKS GIOVANNI GORIA THE COUNTRY'S FINANCE MINISTER ANNOUNCED HIS RESIGNATION THE LATEST VICTIM OF THE BRIBERY AND KICKBACK SCANDALS THE LIRA PLUNGED ALMOST 1 FRIDAY AGAINST BOTH THE DOLLAR AND THE MARK PARLIAMENTARY ELECTIONS ARE LIKELY FOR THIS AUTUMN ONCE THE ITALIAN ELECTORAL SYSTEM HAS BEEN REFORMED ALTHOUGH THE ACCELERATING CRISIS COULD FORCE A VOTE MUCH EARLIER IN ANY CASE THE UNCERTAIN ENVIRONMENT SURROUNDING THE FRANC COUPLED WITH NEARCHAOS DOMESTICALLY MEANS THAT THE LIRA IS A LONG WAY FROM RETURNING TO THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM MIKE YOUNG DIRECTOR OF EUROPEAN STRATEGY AT MERRILL LYNCH & CO IN LONDON PREDICTS THE ITALIANS WILL KEEP DEVALUING TO KEEP THE ECONOMY FROM IMPLODING MR YOUNG IS INCREASINGLY WORRIED ABOUT THE ECONOMIC OUTLOOK THROUGHOUT EUROPE PARTICULARLY UNEMPLOYMENT WHICH IS RISING FAST IN NEARLY EVERY EUROPEAN COUNTRY THE MOST DRAMATIC EXAMPLE IS SPAIN WHERE JOBLESSNESS IS RUNNING AT ABOUT 20 OF THE POTENTIAL WORK FORCE UP FROM ABOUT 155 A YEAR AGO SPAIN IS HEADING FOR 25 UNEMPLOYMENT AND POLITICALLY THAT'S JUST NOT SUSTAINABLE HE SAYS SPANISH GENERAL ELECTIONS ARE TO BE HELD IN OCTOBER AT THE LATEST PARTIES OPPOSING THE GOVERNING SOCIALISTS ARE CALLING FOR AN EARLY VOTE TO TAKE ADVANTAGE OF NEGATIVE SENTIMENT CAUSED BY BLACKENING ECONOMIC FUNDAMENTALS IN ADDITION A SERIES OF CORRUPTION SCANDALS WHILE LESS DRAMATIC THAN IN ITALY IS EXPECTED TO LOSE THE SOCIALISTS MANY VOTES A POLL PUBLISHED LAST WEEK SHOWED 36 SUPPORTING THE SOCIALIST PARTY WHICH WOULD CUT ITS NUMBER OF PARLIAMENTARY SEATS FROM 175 TO 155 THE POLL ALSO INDICATED 31 IN FAVOR OF THE PARTIDO POPULAR WHICH WOULD RESULT IN 127 SEATS FOR THE CONSERVATIVEORIENTED PARTY 20 MORE THAN IT WON IN 1989 THE SOCIALISTS ARE EXPECTED TO HOLD ON TO SOME POWER THOUGH BY FORGING A COALITION WITH SEVERAL REGIONAL PARTIES IN ANY EVENT MANY ANALYSTS PREDICT THE NEED TO WIN VOTES WILL TRANSLATE IN INCREASED GOVERNMENT SPENDING IN SPAIN AND ELSEWHERE MR YOUNG AT MERRILL LYNCH IS DUBIOUS THAT THE GOAL OF REDUCING EC MEMBER BUDGET DEFICITS TO 3 OF GROSS DOMESTIC PRODUCT AS SET OUT BY THE MAASTRICHT TREATY WILL HOLD UP DURING EUROPE'S IMPENDING ECONOMIC DOWNTURN WHICH HE EXPECTS WILL BE THE WORSE SINCE WORLD WAR II EUROPE'S DESPERATE NEED TO GET INTEREST RATES DOWN TO RESTART GROWTH MAKES A LOT OF ANALYSTS BULLISH ON BONDS PETER LYON GLOBAL STRATEGIST AT SMITH NEW COURT PLC LIKES FRENCH GOVERNMENT BONDS ABOVE ALL OTHERS FRANCE IS A WINWIN SITUATION HE SAYS REASONING THAT INTEREST RATES THERE WILL COME DOWN EITHER THROUGH THE BUNDESBANK LETTING UP ON THE MONETARY POLICY REINS OR BY THE FRENCH DEVALUING AND CUTTING RATES ON THEIR OWN LESS THAN TWO MONTHS AFTER THE FRENCH ELECTION THE DANES ARE SCHEDULED TO HAVE ONE MORE SHOT AT RATIFYING THE MAASTRICHT TREATY POLLS PREDICT IT WILL PASS BY A WIDE MARGIN BUT THEN FEW EXPECTED A REJECTION LAST JUNE EITHER AFTER THAT THE BRITISH PARLIAMENT IS EXPECTED TO VOTE ON THE TREATY JUDGING BY THE INCREASINGLY VOCAL EURO SKEPTICS AMONG THE TORIES ITS PASSAGE IS FAR FROM A DONE DEAL 9302220115 930222 INTERNATIONAL HOW ONE MAN IN ITALY SAID NO MORE' AND THE CORRUPTION SCANDAL UNFOLDED BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MONZA ITALY EVERY TIME LUCA MAGNI PICKS UP A NEWSPAPER AND SEES THAT YET ANOTHER TOP POLITICIAN OR BUSINESS EXECUTIVE HAS BEEN HAULED AWAY IN HANDCUFFS ON CORRUPTION CHARGES HE SHAKES HIS HEAD THOUGH HE'S THE MAN WHO STARTED IT ALL HE SAYS WHO COULD'VE GUESSED THAT WHAT I DID WOULD LEAD TO ALL THIS AS ITALY'S CORRUPTION SCANDAL REACHES EPIC PROPORTIONS AND INTO ALMOST EVERY CORNER OF ITALIAN SOCIETY FEW REALIZE THAT MR MAGNI A QUIET 32YEAROLD OWNER OF A CLEANING COMPANY EXPOSED THE DIRT THAT IS BRINGING DOWN A REGIME A YEAR AGO MR MAGNI DECIDED HE HAD PAID ONE TOO MANY BRIBES TO GOVERNMENT OFFICIALS IN EXCHANGE FOR THE RIGHT TO CLEAN THE BUILDINGS UNDER THEIR SUPERVISION SO HE WENT TO AUTHORITIES AND AGREED TO COOPERATE IN A STING OPERATION AGAINST THE CHIEF OF A CITYRUN NURSING HOME WHO WAS DEMANDING KICKBACKS MR MAGNI'S TESTIMONY SERVED AS THE BASIS FOR OPERATION CLEAN HANDS A SWEEPING INVESTIGATION OF ITALIAN POLITICIANS WHO ARE ACCUSED OF EXTORTING MONEY ON PUBLIC WORKS CONTRACTS TO FINANCE THEIR POLITICAL PARTIES THE PROBE HAS LED TO 900 INVESTIGATIONS AND MORE THAN 220 ARRESTS IN 30 CITIES IT HAS LED TO THE RESIGNATIONS OF CABINET MINISTERS AND THE SOCIALIST PARTY BOSS AND IMPLICATED THE FORMER BUDGET MINISTER SCORES OF LEGISLATORS AND LEADING BUSINESSMEN A LIBERAL PARTY STUDY ESTIMATES THAT 60000 PEOPLE FACE IMPRISONMENT IN THE CASE MR MAGNI IS PROUD OF WHAT HE DID THE SUICIDES UPSET ME HE SAYS REFERRING TO SEVEN POLITICIANS AND BUSINESSMEN INVOLVED IN THE SCANDAL WHO KILLED THEMSELVES BUT HE IS PLEASED WITH THE INVESTIGATION'S OVERALL OUTCOME IT MADE ME FEEL GOOD HE SAYS WITH HIS 34YEAROLD SISTER ELISABETTA MR MAGNI OWNS IMPRESA LOMBARDA PULIZIE INDUSTRIALI A SMALL COMPANY IN THIS TOWN NEAR MILAN THAT DEVELOPED A VINYLFLOORCLEANING SYSTEM THEY HAVE 16 EMPLOYEES AND ANNUAL SALES OF 600 MILLION LIRE 389580 NOT LONG AFTER RECEIVING A CONTRACT TO CLEAN ITALY'S LARGEST PUBLIC NURSING HOME MILAN'S PIO ALBERGO TRIVULZIO MR MAGNI WAS SUMMONED TO THE OFFICE OF THE HOME'S PRESIDENT MARIO CHIESA HE TOLD ME I GAVE YOU THIS WORK NOW YOU GIVE ME SOME MONEY' MR MAGNI SAYS HE ASKED FOR 10 OF THE CONTRACT WE HAD INVESTED IN ALL KINDS OF NEW MACHINERY AND THIS WAS A BIG CONTRACT SO WE COULDN'T SAY NO HE SAYS BUT AFTER ABOUT TWO YEARS OF PAYING THE 10 WE STARTED TO GET SICK OF IT IT MAKES THINGS VERY DIFFICULT LAST FEBRUARY MR CHIESA GRANTED MR MAGNI'S COMPANY ITS BIGGEST CONTRACT EVER FOR 140 MILLION LIRE I GOT THREE PHONE CALLS FROM HIS SECRETARY AND I KNEW HE WAS CALLING FOR THE MONEY I TALKED TO MY SISTER ABOUT IT AND WE DECIDED THAT'S IT ENOUGH WE KNEW WE WOULDN'T WORK FOR THEM AGAIN AND WE KNEW WE WOULDN'T WORK FOR ANY OTHER STATE COMPANY AGAIN BUT AT LEAST WE'D HAVE A CLEAN CONSCIENCE AT THE TIME MR MAGNI THOUGHT HIS COMPANY WAS THE ONLY ONE THAT HAD TO PAY THE BRIBES MR MAGNI TALKED TO A MILAN INVESTIGATING MAGISTRATE WHO PUT HIM IN TOUCH WITH JUDGE ANTONIO DI PIETRO THE CHIEF INVESTIGATOR FOR OPERATION CLEAN HANDS WHO HAD ALREADY COMPILED A FILE OF EXTORTION ALLEGATIONS AGAINST MR CHIESA BUT HAD NO PROOF ADMISSIBLE IN COURT DI PIETRO TOLD ME THE ONLY WAY THEY COULD DO SOMETHING ABOUT THIS WAS IF I COOPERATED SO I AGREED SAYS MR MAGNI THIS WAS A FRIDAY HE TOLD ME THAT ON MONDAY MORNING I SHOULD TAKE HALF THE BRIBE OR SEVEN MILLION LIRE IN AN ENVELOPE TO CHIESA'S OFFICE THAT WAY CHIESA WOULD GET MAD AND START TALKING THE MORE HE TALKED THE BETTER THE EVIDENCE ON MONDAY MR MAGNI DROVE TO THE POLICE OFFICE IN MILAN THEY GAVE ME A PEN WITH A MICROPHONE ON IT THAT I PUT IN MY POCKET THEY MARKED 10 OF THE BILLS IN THE ENVELOPE AND PHOTOCOPIED THEM THEN THEY GAVE ME A BRIEFCASE WITH A HOLE IN THE SIDE IT WAS A VIDEO CAMERA BUT THAT DIDN'T WORK FOUR UNDERCOVER POLICE CARS ACCOMPANIED MR MAGNI TO THE NURSING HOME WHERE THEY WAITED IN THE PARKING LOT WITH A RADIO RECEIVER LISTENING TO THE CONVERSATION VIA MR MAGNI'S PEN WHEN HE WALKED INTO THE PRESIDENT'S OFFICE MR MAGNI TOLD MR CHIESA THAT HE HAD BROUGHT ONLY HALF THE BRIBE HE SAID WHEN ARE YOU BRINGING THE OTHER HALF' I SAID NEXT WEEK' AND THAT WAS ALL THEY NEEDED MR MAGNI WAS HALFWAY DOWN THE STAIRS WHEN EIGHT POLICEMEN RACED PAST HIM ON THEIR WAY UP THE POLICE FOUND AN ADDITIONAL 14 BILLION LIRE 9 MILLION IN MR CHIESA'S SAFE IT SEEMS MR MAGNI WASN'T THE ONLY ONE PAYING BRIBES LAST AUTUMN MR CHIESA WAS FOUND GUILTY OF CORRUPTION AND WAS SENTENCED TO SIX YEARS IN PRISON HE ALSO AGREED TO REPAY SIX BILLION LIRE IN BRIBES 55 MILLION OF WHICH WAS RETURNED TO MR MAGNI BEFORE THE TRIAL MR CHIESA TOLD POLICE EVERYTHING HE KNEW ABOUT THE BRIBERY SCAM RUNNING WILD IN MILAN AND AS IT TURNS OUT THROUGHOUT ITALY HIS CONFESSIONS LED TO A SERIES OF ARRESTS AND MORE CONFESSIONS CREATING A DOMINO EFFECT THAT IS STILL SWEEPING THE COUNTRY MR MAGNI DOESN'T LIKE TAKING CREDIT FOR BEING THE CATALYST TO CHANGE A NATION IF I HADN'T DONE IT SOMEBODY ELSE WOULD HAVE HE SAYS THE ABSURD THING ABOUT ITALY IS THAT THEY MAKE PEOPLE A HERO FOR DOING WHAT ANY NORMAL PERSON SHOULD DO 9302220114 930222 POTOMAC ELECTRIC TO PAY 384 MILLION TO SETTLE BIAS CHARGES WASHINGTON POTOMAC ELECTRIC POWER CO AGREED TO PAY 384 MILLION TO SETTLE DISCRIMINATION CHARGES ALLEGED BY BLACK AND FEMALE WORKERS AND JOB APPLICANTS AFTER PAYMENT OF ABOUT 10 MILLION IN LEGAL FEES THE MONEY WILL BE DISTRIBUTED AMONG AS MANY AS 3200 CURRENT OR FORMER WORKERS AND 17000 REJECTED JOB APPLICANTS ACCORDING TO THE SETTLEMENT AGREEMENT DISCLOSED SATURDAY THE UTILITY WHICH DID NOT ADMIT WRONGDOING ALSO AGREED TO REVISE ITS HIRING PRACTICES AND OTHER PERSONNEL PROCEDURES POTOMAC ELECTRIC'S PRESIDENT JOHN M DERRICK SAID HE WANTED TO PUT AN END TO THE SEVENYEAROLD LAWSUIT AND PREEMPT WHAT COULD HAVE BEEN SEVERAL MORE YEARS OF LITIGATION POTOMAC ELECTRIC DID NOT DISCLOSE THE FINANCIAL EFFECT TO THE COMPANY A SPOKESMAN SAID THE COMPANY IS REVIEWING WHETHER INSURANCE COVERS PART OF THE COSTS THE SETTLEMENT REQUIRES APPROVAL OF A FEDERAL DISTRICT JUDGE IN WASHINGTON 9302220113 930222 WHO'S NEWS CIRCUS CIRCUS'S SCHAEFFER QUITS STOCK TUMBLES ABRUPT DEPARTURE IS LAID TO CHAIRMAN'S CRITICISM OF BIG PROJECT'S COSTS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL GLENN W SCHAEFFER RESIGNED AS PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR OF CASINO GIANT CIRCUS CIRCUS ENTERPRISES INC FOLLOWING A CLASH WITH THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM G BENNETT IN HIS NINE YEARS AT CIRCUS MR SCHAEFFER 39 YEARS OLD HELPED TRANSFORM THE LAS VEGAS COMPANY INTO AN INDUSTRY LEADER AND WALL STREET DARLING HIS ABRUPT DEPARTURE SHOCKED INVESTORS WHO SENT THE STOCK TUMBLING 3875 TO 4475 ON VERY HEAVY VOLUME OF 3920000 SHARES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY CLYDE T TURNER 55 WAS NAMED TO SUCCEED MR SCHAEFFER AS PRESIDENT AND CHIEF FINANCIAL OFFICER LAST FALL MR TURNER RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF RIVAL MIRAGE RESORTS INC WHERE HE HAD WORKED FOR 14 YEARS TERRY L CAUDILL 43 WAS NAMED TO SUCCEED MR SCHAEFFER AS TREASURER THE EXECUTIVE SHAKEUP SENT A CHILL THROUGH WALL STREET INVESTORS BECAUSE IT COMES IN THE MIDST OF AN AGGRESSIVE EXPANSION AT CIRCUS THE COMPANY IS SPENDING MORE THAN 300 MILLION ON A HUGE PYRAMIDSHAPED CASINO ON THE LAS VEGAS STRIP AND 75 MILLION ON AN ENTERTAINMENT PARK AT ITS NEARBY CIRCUS CIRCUS HOTELCASINO MR BENNETT 68 ATTRIBUTED THE BLOWUP TO THE COMPANY'S JOINT BID WITH HILTON HOTELS CORP AND CAESARS WORLD INC TO BUILD A 2 BILLION ENTERTAINMENT AND CASINO COMPLEX IN CHICAGO THE LOBBYING EFFORT FOR THE PROJECT WHICH HAS BEEN STALLED BY POLITICAL OPPOSITION LED BY ILLINOIS GOV JIM EDGAR HAS COST THE THREE COMPANIES A TOTAL OF MORE THAN 5 MILLION IN AN INTERVIEW THE COMPANY'S COFOUNDER SAID HE HAD CHASTISED MR SCHAEFFER A FEW WEEKS AGO FOR SPENDING SO HEAVILY ON THE PLAN WHICH SPARKED AN ARGUMENT MR SCHAEFFER TOLD THE BOARD HE WAS RESIGNING LATE THURSDAY NIGHT MR BENNETT SAID MR SCHAEFFER SAID HE COULD NOT DISCUSS HIS DEPARTURE BEYOND A STATEMENT IN A NEWS RELEASE WHICH SAID HE WOULD CONTINUE AS A CONSULTANT AND WOULD PURSUE OTHER OUTSIDE INTERESTS MR BENNETT SAID MR SCHAEFFER WOULD SERVE IN THAT ROLE FOR THE REST OF THE YEAR AND WOULD BE PRECLUDED FROM TAKING A JOB WITH A COMPETITOR DURING THAT TIME BUT PERSONS FAMILIAR WITH THE SITUATION SAID TENSIONS HAD BEEN MOUNTING AT THE COMPANY AS THE PRESSURES OF THE CHICAGO VENTURE AND TWO MAJOR PROJECTS TOOK THEIR TOLL THAT SPARKED A SERIES OF SKIRMISHES BETWEEN THE SHREWD PLAINSPOKEN MR BENNETT AND HIS HEIR APPARENT WHO ARGUED ABOUT VARIOUS ISSUES INCLUDING MR SCHAEFFER'S EVENTUAL SUCCESSION TO THE TOP JOB MR BENNETT DOWNPLAYED THE CHANGES SAYING MR SCHAEFFER'S DEPARTURE WILL MAKE NO DIFFERENCE TO THE COMPANY BECAUSE IT'S TOO BIG BUT INVESTORS COMPETITORS AND WALL STREET ANALYSTS SAID THE SHAKEUP RAISES SEVERAL CONCERNS INCLUDING THE ISSUE OF MR BENNETT'S APPARENT RELUCTANCE TO TURN OVER THE REINS TO A SUCCESSOR GLENN'S DEPARTURE CREATES A HEIGHTENED DEGREE OF UNCERTAINTY ABOUT THESE PROJECTS IN THE MIDDLE OF AN IMPORTANT PHASE OF DEVELOPMENT SAID HAROLD VOGEL AN ANALYST WITH MERRILL LYNCH & CO OTHERS POINTED OUT THAT MR SCHAEFFER'S DEPARTURE MIRRORS THE 1991 RESIGNATION OF RICHARD P BANIS AS PRESIDENT AND CHIEF OPERATING OFFICER WHICH CAME JUST MONTHS AFTER MR BENNETT SAID HE PLANNED TO RETIRE MR BENNETT SAID HE WANTS TO GROOM A TOP OPERATIONS MANAGER TO ROUND OUT HIS TEAM WHILE THE COMPANY HAS SOME GOOD EXECUTIVES RUNNING ITS VARIOUS CASINOS HE SAID I'VE HAD PRETTY BAD LUCK MOVING THOSE GUYS UP A NOTCH TO SENIOR POSITIONS THE COMPANY'S PROJECTS REMAIN ON SCHEDULE MR BENNETT SAID ALTHOUGH THE CONSTRUCTION COSTS FOR THE PYRAMIDTHEMED LUXOR WILL RISE BY ABOUT 10 MILLION TO 310 MILLION ALSO THE COMPANY RECENTLY HIRED MICHAEL RUMBOLZ FORMER CHAIRMAN OF THE NEVADA GAMING CONTROL BOARD TO EXPLORE DEVELOPMENTS OUTSIDE NEVADA SEPARATELY THE COMPANY EXPECTS TO REPORT NET INCOME FOR THE FISCAL FOURTH QUARTER ENDED JAN 31 OF 35 CENTS TO 37 CENTS A SHARE VS 34 CENTS A SHARE OR 19 MILLION A YEAR EARLIER BAD WEATHER IN RENO NEV AND CONSTRUCTION AT THE CIRCUS CIRCUS CASINO IN LAS VEGAS DEPRESSED VISITOR COUNTS DURING THAT PERIOD THE COMPANY SAID 9302220112 930222 HITACHI ZOSEN AGREES TO SET UP A VENTURE FOR SHIPSCRAPPING SPECIAL TO THE WALL STREET JOURNAL TOKYO HITACHI ZOSEN CORP AGREED WITH TWO HONG KONG FIRMS AND A JAPANESE SHIPPER TO START A SHIPSCRAPPING JOINT VENTURE IN VIETNAM HITACHI ZOSEN A JAPANESE SHIPBUILDING COMPANY WILL HOLD A 10 SHARE OF THE VENTURE CAPITALIZED AT 44 MILLION AND DUE TO BEGIN WORK IN JUNE HONG KONG'S KUO OIL LTD WILL HOLD 15 AND THAT COLONY'S PATT MANFIELD & CO WILL HOLD 10 A HITACHI ZOSEN SPOKESMAN SAID JAPANESE SHIPPER NISSHO KISEN KK WILL HOLD 15 AND A VIETNAMESE STATEOWNED CONCERN CALLED NO 387 FACTORY WHICH SPECIALIZES IN AUTOMOBILE REPAIR WILL HOLD 50 THE SPOKESMAN SAID THE HITACHI ZOSEN SPOKESMAN SAID THIS IS THE FIRST TIME FOR A JAPANESE SHIPBUILDER TO FORM A VENTURE FOR OVERSEAS SCRAPPING JAPAN'S SHIPPING AND SHIPBUILDING INDUSTRIES HAVE BEEN TRYING TO ENCOURAGE NEW SHIPSCRAPPING OPERATIONS AS A GLUT OF VESSELS ON THE WORLD'S OCEANS DEPRESSES CARGO FEES AND DAMPS ORDERS FOR NEW VESSELS THE RELATIVELY LOWWAGE PHYSICALLY DEMANDING NATURE OF THE WORK MAKES LOWWAGE COUNTRIES WITH RAPIDLY EXPANDING DEMAND FOR STEEL THE MOST LIKELY SITES FOR SUCH OPERATIONS THE VENTURE WILL BE BASED IN THE CENTRAL VIETNAMESE CITY OF DA NANG AND WILL BE CALLED DA NANG SHIPBREAKING & STEEL CO 9302220111 930222 FUJITSU RAISES STAKE IN AMDAHL TO 4476 SUNNYVALE CALIF FUJITSU LTD RAISED ITS STAKE IN AMDAHL CORP TO 4476 A 33 INCREASE IN THE JAPANESE COMPANY'S HOLDINGS ACCORDING TO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IN THE FILING FUJITSU SAID IT BOUGHT 15 MILLION AMDAHL COMMON SHARES IN NOVEMBER 1992 AND BOUGHT 325400 MORE SHARES ON JAN 28 A SPOKESMAN FOR AMDAHL A SUNNYVALE CALIF MAINFRAME COMPUTER MAKER SAID FUJITSU HELD 4333 AT THE END OF SEPTEMBER JUST BEFORE ITS ADDITIONAL PURCHASES FUJITSU HAS OWNED A SUBSTANTIAL STAKE IN AMDAHL SINCE BEFORE THE US COMPANY'S STOCK WENT PUBLIC IN 1976 AND THE GIANT JAPANESE ELECTRONICS CONCERN BUYS NEW SHARES OCCASIONALLY TO COMPENSATE FOR DILUTIONS IN ITS HOLDINGS CAUSED BY AMDAHL EMPLOYEES' EXERCISING OF STOCK OPTIONS THE SPOKESMAN SAID FUJITSU'S AGREEMENT WITH AMDAHL ALLOWS IT TO HOLD UP TO 495 OF AMDAHL'S STOCK 9302220109 930222 BRITISH AIR REALIGNS DUTIES OF TOP OFFICIALS IN WAKE OF SCANDAL SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH AIRWAYS PLC AS PART OF A PREVIOUSLY ANNOUNCED MANAGEMENT RESTRUCTURING SAID IT WILL SPLIT VARIOUS OPERATIONAL RESPONSIBILITIES BETWEEN ROBERT AYLING THE RECENTLY APPOINTED GROUP MANAGING DIRECTOR AND THE NEW CHAIRMAN SIR COLIN MARSHALL THE MANAGEMENT CHANGES FOLLOW A SCANDAL OVER THE ALLEGEDLY UNFAIR COMPETITIVE TACTICS IT USED AGAINST VIRGIN ATLANTIC AIRWAYS MR AYLING WILL HEAD BA'S MARKETING AND OPERATIONS GROUP WHICH WILL BE SUBDIVIDED INTO A VARIETY OF NEW OPERATING UNITS MR AYLING WHO WILL CONTINUE TO REPORT TO SIR COLIN WILL ALSO BE RESPONSIBLE FOR BA'S FLIGHT OPERATIONS HUMAN RESOURCES ENGINEERING AND INFORMATION MANAGEMENT DEPARTMENTS IN ADDITION TO HIS ROLE AS CHAIRMAN SIR COLIN WILL RETAIN DIRECT RESPONSIBILITY FOR FINANCE SAFETY SECURITY AND ENVIRONMENT HEALTH SERVICES COMPANY SECRETARIAT LEGAL COMMUNICATIONS AND PUBLIC RELATIONS BA'S FORMER CHAIRMAN LORD KING RESIGNED FEB 5 HE WAS SCHEDULED TO RESIGN LATER THIS YEAR BUT PULLED THE DATE FORWARD AFTER BA AGREED TO PAY 610000 882060 PLUS COURT COSTS TO VIRGIN TO SETTLE A LIBEL SUIT FILED BY THE RIVAL UK AIRLINE VIRGIN CLAIMED THAT BA HAD USED A VARIETY OF UNFAIR COMPETITIVE TACTICS TO LURE AWAY ITS CLIENTS 9302220108 930222 BUSINESS BRIEF HOMESTAKE MINING CO FIRM'S FOURTHPERIOD LOSS NARROWED TO 274 MILLION HOMESTAKE MINING CO REPORTED A NARROWED FOURTHQUARTER LOSS COMPARED WITH A YEAREARLIER PERIOD THAT WAS LADEN WITH WRITEDOWNS AND SAID IT LOWERED ITS AVERAGE CASH COST OF PRODUCING GOLD BY 21 THE SAN FRANCISCO COMPANY HAD A LOSS OF 274 MILLION OR 20 CENTS A SHARE COMPARED WITH A LOSS OF 1409 MILLION OR 106 A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED PRETAX WRITEDOWNS OF 108 MILLION AND RESTRUCTURING CHARGES OF 136 MILLION REVENUE ROSE 35 TO 156 MILLION FROM 1508 MILLION THE COMPANY SAID IT PUSHED CASH COSTS OF GOLD PRODUCTION TO 227 AN OUNCE FROM 289 AN OUNCE A YEAR EARLIER IN NEW YORK STOCK EXCHANGE TRADING FRIDAY HOMESTAKE MINING GAINED 25 CENTS TO 1225 9302220107 930222 LETTERS TO THE EDITOR IN MOMENTS OF CHAOS REACH FOR AURELIUS TO SAY THAT MARCUS AURELIUS'S TALENT LAY IN HIS ABILITY TO CONCENTRATE STOIC THOUGHT INTO TIGHT PITHY EXPRESSIONS THAT CAN BE VERY QUOTABLE IS TO BETRAY AN UNDERSTANDING OF THE MEDITATIONS THAT IS SLIGHT AT BEST THE BOOK ON CLINTON'S BEDSIDE TABLE BY STEVE COATES EDITORIAL PAGE JAN 20 MARCUS AURELIUS LEFT US THE ACCOUNT OF A MAN WHO IN THE FACE OF GREAT VAGUENESS CONTINUED TO TRY TO DO WHAT WAS NECESSARY SPIRITUALLY SOUND AND JUST IT IS MARCUS'S SINCERITY HIS UNFLINCHING HUMILITY AND HIS ATTEMPT TO CONFRONT THE HUMAN CONDITION WITH BOTH MORALITY AND DIGNITY THAT DISTINGUISH HIS SHORT AND PRIVATE NOTES IN EVERY DIFFICULT ENDEAVOR THERE IS AT LEAST ONE TIME WHEN ALL THINGS SEEM CONTRADICTORY IF NOT OUTRIGHT CHAOTIC AND IT IS FOR MOMENTS SUCH AS THESE THAT THE MEDITATIONS MOST APPLY IT IS TYPICAL OF MARCUS AURELIUS THAT HE BEGINS WITH A LIST OF THOSE PEOPLE FROM WHOM HE HAS LEARNED VALUABLE LESSONS A WORTHWHILE PURSUIT FOR ANYONE ABOUT TO EMBARK ON A NEW AND PERILOUS ENTERPRISE 9302220106 930222 ANOTHER FORMER ALYESKA INSPECTOR SAYS OIL PIPELINE IGNORES POTENTIAL PROBLEMS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL ANOTHER FORMER ALYESKA PIPELINE SERVICES CO INSPECTOR HAS LEVELED CHARGES THAT ALYESKA IS IGNORING POTENTIALLY DANGEROUS SAFETY AND ENVIRONMENTAL PROBLEMS AND HARASSING WHISTLE BLOWERS AT ITS OPERATIONS ALONG THE TRANSALASKA PIPELINE RICHARD GREEN WHO WAS QUALITYCONTROL MANAGER AT ALYESKA'S OIL TANKER LOADING TERMINAL IN VALDEZ ALASKA FOR ABOUT 20 MONTHS BEFORE BEING FIRED IN DECEMBER ALLEGES THAT INSPECTORS' REPORTS OF NUMEROUS SERIOUS AND DANGEROUS VIOLATIONS OF EVERYTHING FROM ENVIRONMENTAL REGULATIONS TO NATIONAL ELECTRICAL CODES WERE ROUTINELY SWEPT UNDER THE RUG BY HIS SUPERIORS AT ALYESKA MR GREEN ALSO SAID HE WAS ORDERED TO FALSIFY EMPLOYEE EVALUATIONS SO ALYESKA COULD JUSTIFY FIRING AN INSPECTOR WHO HAD RAISED POTENTIAL SAFETY PROBLEMS HE SAID HE HIMSELF WAS FIRED AFTER HIS CRITICISMS OF ALYESKA'S PRACTICES HE MADE THE ALLEGATIONS IN A WRONGFULTERMINATION COMPLAINT FILED WITH THE DEPARTMENT OF LABOR AND IN AN INTERVIEW MR GREEN JOINS A GROWING CHORUS OF FORMER INSPECTORS AND WHISTLE BLOWERS ALLEGING THAT ALYESKA'S SAFETY AND ENVIRONMENTAL PRACTICES REMAIN POOR DESPITE PUBLIC AND CONGRESSIONAL PRESSURE TRIGGERED BY THE EXXON VALDEZ OIL SPILL IN MARCH 1989 FIVE OTHER INSPECTORS ALREADY HAVE FILED WRONGFULTERMINATION ACTIONS WITH THE LABOR DEPARTMENT ALYESKA WHICH IS OWNED BY BRITISH PETROLEUM LTD EXXON CORP ATLANTIC RICHFIELD CO AND THE OTHER OIL CONCERNS OPERATING IN ALASKA'S NORTH SLOPE FIELDS RUNS THE PIPELINE AND THE TANKER TERMINAL IN VALDEZ IT HAS ALWAYS DENIED THE INSPECTORS' ACCUSATIONS A SPOKESWOMAN DECLINED TO COMMENT ON DETAILS OF MR GREEN'S CHARGES BUT SAID MR GREEN WAS DISMISSED AS PART OF A REORGANIZATION OF HIS DEPARTMENT NOT IN RETALIATION FOR ANY COMPLAINTS ABOUT ALYESKA PRACTICES MR GREEN A 55YEAROLD WITH 30 YEARS O EXPERIENCE AS A QUALITYCONTROL MANAGER AT NUCLEAR PLANTS AND BIG CONSTRUCTION PROJECTS WAS HIRED BY ALYESKA IN APRIL 1991 HE SAID HE FOUND HUNDREDS OF VIOLATIONS OF GOVERNMENTMANDATED SAFETY CODES AND OTHER REGULATIONS BUT MET STIFF RESISTANCE WHEN HE TRIED TO REPORT OR CORRECT THEM ONE OF MR GREEN'S MOST TROUBLING ALLEGATIONS INVOLVES THE EVENTUAL FIRING OF ANOTHER INSPECTOR JAMES SCHOOLEY WHO HAD RAISED SAFETY CONCERNS MR GREEN SAID HE WAS ORDERED TO FABRICATE AND BACKDATE UNFAVORABLE EMPLOYMENT EVALUATIONS OF MR SCHOOLEY WHO HAS SINCE FILED A WRONGFULTERMINATION COMPLAINT AGAINST ALYESKA IN NOVEMBER MR GREEN WROTE A MEMO ABOUT SUCH PRACTICES TO ALYESKA'S CHIEF EXECUTIVE OFFICER JAMES B HERMILLER WHO RECENTLY ANNOUNCED THAT HE WILL STEP DOWN IN APRIL MR GREEN SENT COPIES OF THE MEMO TO CONGRESSIONAL COMMITTEES THAT OVERSEE SOME ALYESKA OPERATIONS SHORTLY THEREAFTER MR GREEN WAS FIRED 9302220105 930222 MARKETING & MEDIA PEARSON'S PENGUIN RR DONNELLEY AGREE ON PRINTING FACILITY NEW YORK PENGUIN USA AND PRINTER RR DONNELLEY & SONS CO ANNOUNCED AN AGREEMENT FOR DONNELLEY TO BUILD A BOOKPRINTING PLANT EXCLUSIVELY FOR PENGUIN TITLES NEXT TO THE PUBLISHER'S WAREHOUSE TERMS WEREN'T DISCLOSED CHICAGOBASED RR DONNELLEY THE COUNTRY'S BIGGEST BOOK PRINTER AND PENGUIN A NEW YORKBASED UNIT OF BRITISH PEARSON PLC SAID THIS MARKS THE FIRST SUCH ARRANGEMENT BETWEEN A PUBLISHER AND PRINTER THE PLANT SCHEDULED TO START PRODUCTION IN AUGUST WILL BE BUILT IN NEWBERN TENN AND WILL HANDLE ONLY PAPERBACK BOOKS TO START DONNELLEY CURRENTLY PRINTS PENGUIN PAPERBACK TITLES AT PLANTS IN WISCONSIN ILLINOIS AND VIRGINIA WHICH ARE THEN TRUCKED TO PENGUIN'S WAREHOUSE IN TENNESSEE BEFORE BEING SHIPPED TO WHOLESALERS AND DISTRIBUTORS WHO THEN SEND THE BOOKS TO STORES REMOVING A LEG OF THE DISTRIBUTION JOURNEY WILL SAVE TIME AND MONEY SAID A PENGUIN SPOKESMAN AND WILL ALLOW PENGUIN TO PRINT SMALLER QUANTITIES CLOSER TO THEIR DELIVERY DATES THE EXCESSIVE RETURN OF UNSOLD BOOKS FROM BOOKSTORES IS A GROWING PROBLEM IN PUBLISHING ESPECIALLY FOR MASSMARKET PAPERBACKS 9302220104 930222 WHO'S NEWS GAYLORD ENTERTAINMENT HIRES EVANS FOR NEW POSITION OF OPERATING CHIEF BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL GAYLORD ENTERTAINMENT CO IN A MOVE TO STRENGTHEN ITS ALREADY FORMIDABLE COMMUNICATIONS AND ENTERTAINMENT OPERATIONS NAMED RICHARD H EVANS TO THE NEW POSITION OF CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT MR EVANS 48 YEARS OLD WAS MOST RECENTLY PRESIDENT AND CHIEF EXECUTIVE OF DORNA USA A SUBSIDIARY OF DORNA PROMOCION DEL DEPORTE A MAJOR SPORTSMARKETING FIRM BASED IN MADRID BUT HE IS BEST KNOWN FOR HIS TENURE DURING THE 1980S AS HEAD OF RADIO CITY MUSIC HALL IN NEW YORK CITY'S ROCKEFELLER CENTER AND LATER AS HEAD OF PARAMOUNT COMMUNICATIONS INC'S MADISON SQUARE GARDEN ALSO IN NEW YORK ANALYSTS APPLAUDED THE MOVE NOTING THAT MR EVANS'S EXPERIENCES DOVETAIL NICELY WITH GAYLORD'S DIVERSE DIVISIONS IT'S CLEARLY THE KIND OF TALENT THAT THE COMPANY NEEDS TO BRING TO THE PARTY SAID CHRISTOPHER DIXON AT PAINEWEBBER THAT PARTY BY MOST ACCOUNTS IS A MAJOR SUCCESS REFLECTING THE NATION'S CURRENT LOVE AFFAIR WITH COUNTRY MUSIC GAYLORD'S CABLENETWORK DIVISION MADE UP PRIMARILY OF TNN THE NASHVILLE NETWORK AND CMT COUNTRY MUSIC TELEVISION SAW PROFIT JUMP ALMOST 15 IN THE 1992 FOURTH QUARTER ON A 27 INCREASE IN REVENUE PROFIT IN THE COMPANY'S ENTERTAINMENT DIVISION CONSISTING PRIMARILY OF THE GRAND OLE OPRY OPRYLAND HOTEL AND OPRYLAND PARK IN NASHVILLE TENN ROSE ALMOST 35 ON AN 8 INCREASE IN REVENUE THE OVERALL RESULT AT GAYLORD RECORD FOURTHQUARTER EARNINGS OF 88 MILLION OR 21 CENTS A SHARE ON REVENUE OF 1605 MILLION WE HAVE A LOT OF GROWTH OPPORTUNITIES SAID EW WENDELL GAYLORD'S PRESIDENT AND CHIEF EXECUTIVE IN AN INTERVIEW MR EVANS'S BACKGROUND PARALLELS MANY OF OUR BUSINESSES WE'VE REACHED A POINT WHERE IT'S TIME TO BRING HIM ON BOARD BETWEEN 1980 AND 1986 MR EVANS SERVED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF RADIO CITY MUSIC HALL PRODUCTIONS INC BEFORE THAT HE WORKED AT WALT DISNEY CO WHERE HE WAS INVOLVED IN THE PLANNING AND CONSTRUCTION OF DISNEY WORLD IN ORLANDO FLA IN 1986 MR EVANS BECAME PRESIDENT AND CHIEF EXECUTIVE OF MADISON SQUARE GARDEN CORP WHERE HE OVERSAW A 200 MILLION RENOVATION OF THE FAMED FACILITY IN AUGUST 1991 HOWEVER PARAMOUNT SAID MR EVANS WAS LEAVING THE GARDEN TO PURSUE OTHER OPPORTUNITIES AT THE TIME PEOPLE FAMILIAR WITH THE SITUATION SAID PARAMOUNT HAD ASKED HIM TO RESIGN BECAUSE IT WAS DISSATISFIED WITH THE PACE OF DEVELOPMENTS AT THE SUBSIDIARY MR EVANS SAID HE RESIGNED BY MUTUAL AGREEMENT WITH PARAMOUNT ADDING THAT HE HAD COMPLETED WHAT HE SET OUT TO ACCOMPLISH AT THE SUBSIDIARY IN AN INTERVIEW FRIDAY MR EVANS SAID HE FELT AS IF HE HAD BEEN TRAINING HIS WHOLE LIFE FOR THE NEW POSITION AT GAYLORD THEY HAVE A UNIQUE NICHE IN THE MARKET HE SAID AND I HOPE TO CONTRIBUTE TO THEIR GROWTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY GAYLORD SHARES FELL 25 CENTS TO 38875 9302220103 930222 EXSTOCK TRADER FOR FIDELITY UNIT ACCUSED OF FRAUD BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON A FORMER STOCK TRADER FOR FIDELITY INVESTMENTS' INSTITUTIONAL SERVICE ARM WAS CHARGED WITH DEFRAUDING MARKET MAKERS OF ABOUT 83000 KEN L ANDERSON 32 YEARS OLD WAS CHARGED WITH DEFRAUDING FIVE MARKET MAKERS WHO REGULARLY HANDLED BIG TRADES FOR FIDELITY INCLUDING SHERWOOD SECURITIES CORP TROSTER SINGER CORP AND SHEARSON LEHMAN HUTTON INC ACCORDING TO THE US ATTORNEY'S OFFICE MR ANDERSON PERSUADED THE MARKET MAKERS TO ACCEPT FICTITIOUS TRADES HE CLAIMED TO HAVE MADE IN THE ACCOUNT OF A FRIEND BY USING HIS COMPUTER SCREEN TO CREATE REPORTS OF THE TRADES WHEN A MARKET MAKER LATER RECEIVED A REPORT OF THE TRADE FROM A CLEARINGHOUSE IT WOULDN'T HAVE ANY RECORD BUT MR ANDERSON WHO REPRESENTED A CHERISHED CUSTOMER WOULD CONVINCE THE MARKET MAKER THAT IT HAD MADE THE ERROR SAID ASSISTANT US ATTORNEY JONATHAN L KOTLIER WHO IS PROSECUTING THE CASE FIDELITY SAID THAT ITS INTERNAL COMPLIANCE FORCE DISCOVERED WHAT MR ANDERSON WAS DOING IN OCTOBER 1991 AND HE WAS IMMEDIATELY TERMINATED FIDELITY INFORMED THE FEDERAL BUREAU OF INVESTIGATION A SPOKESWOMAN SAID FIDELITY HASN'T MADE ANY PAYMENTS TO THE MARKET MAKERS BUT SHE SAID SHE UNDERSTANDS THAT MR ANDERSON PLANS TO REPAY THEM MR ANDERSON DIDN'T RESPOND TO A MESSAGE LEFT ON HIS ANSWERING MACHINE WHILE MR ANDERSON WAS A LOWLEVEL EMPLOYEE THE CHARGES AGAINST HIM ARE ANOTHER EMBARRASSMENT FOR FIDELITY THE NATION'S BIGGEST MUTUAL FUND FIRM LAST YEAR A FORMER FIDELITY INVESTMENTS JUNKBOND FUND PORTFOLIO MANAGER PATRICIA OSTRANDER WAS CONVICTED OF ACCEPTING A BRIBE FROM FORMER DREXEL BURNHAM LAMBERT JUNK CHIEF MICHAEL MILKEN IN RETURN FOR DOING BUSINESS WITH DREXEL IN 1985 WILLIAM PIKE WHO MANAGED FIDELITY'S HIGH YIELD FUND FROM 1981 UNTIL 1988 WAS DISCIPLINED BY THE SECURITIES AND EXCHANGE COMMISSION FOR FALSELY DOCUMENTING TRADES WITH DREXEL 9302220102 930222 ISHIKAWAJIMA PLANS TECHNOLOGY TRANSFER FOR CARRYING TANKS SPECIAL TO THE WALL STREET JOURNAL TOKYO ISHIKAWAJIMA HARIMA HEAVY INDUSTRIES CO PLANS TO TRANSFER THE TECHNOLOGICAL EXPERTISE ON A TYPE OF LIQUEFIED NATURAL GAS CARRIER THAT IT HAS INVENTED A SPOKESMAN SAID SEVERAL FOREIGN SHIPBUILDERS MOSTLY FROM EUROPE HAVE ASKED ISHIKAWAJIMA TO GIVE THEM TECHNOLOGY TO BUILD THE SPB MODEL TANKERS WHICH FEATURE SELFSUPPORTING PRISMATIC SHAPED GAS TANKS HE SAID THE COMPANY WILL START NEGOTIATING TERMS OF SUCH TECHNOLOGY TRANSFER IN THE NEXT FEW MONTHS WITH UNIDENTIFIED COMPANIES AND WILL PICK TWO TO THREE PARTNERS THE SPOKESMAN SAID THE PURPOSE OF SUCH ARRANGEMENTS IS TO CREATE A FAMILY OF SPB TANKER BUILDERS IN ORDER TO ACQUIRE A COMPETITIVE EDGE AGAINST OTHER TYPES OF LNG CARRIERS SUCH AS THE MOSS MODEL BUILT BY JAPAN'S MITSUBISHI HEAVY INDUSTRIES LTD MOSS CARRIERS ARE EQUIPPED WITH SPHERICAL GAS TANKS THERE WILL BE MANY NEW LNG PROJECTS COMING ON STREAM INCLUDING PHASES TWO AND THREE OF QATAR OMAN AND INDONESIA THE SPOKESMAN SAID ISHIKAWAJIMA WILL COMPLETE ITS FIRST SPB TANKER IN JUNE FOR A JOINT VENTURE OF PHILLIPS 66 LNG CO AND MARATHON OIL CO OF THE US THE SHIP WILL GO INTO SERVICE ON THE ALASKAJAPAN ROUTE HE SAID ISHIKAWAJIMA HAS ALREADY SIGNED A TECHNOLOGY TRANSFER AGREEMENT ON THE SPB MODEL WITH JAPAN'S SUMITOMO HEAVY INDUSTRIES LTD 9302220101 930222 LETTERS TO THE EDITOR BEWARE THE ECOFANATICS JONATHAN TURLEY'S SHRILL FEB 3 LETTER TO THE EDITOR CRIMES AGAINST THE ENVIRONMENT CRITICIZES YOUR JAN 15 EDITORIAL THE ELLEN PARDON MR TURLEY TAKES YOU TO TASK FOR EDITORIALIZING AGAINST THE OVERZEALOUS CRIMINAL PROSECUTION AND PRISON TERMS METED OUT FOR MINOR WETLAND INFRACTIONS BY BILL ELLEN OUR CLIENT JOHN POZSGAI AND OTHERS HIS LETTER PERFECTLY ILLUSTRATES THE REASON WHY THE ENVIRONMENTAL PROTECTION AGENCY AND JUSTICE DEPARTMENT ENVIRONMENTAL PROSECUTORS ARE IN NEED OF SOME ADULT SUPERVISION MR TURLEY'S ATTEMPT TO GENERALIZE ABOUT SOCALLED ENVIRONMENTAL CRIMINALS AND HOW THEY ARE AS A CLASS MORE DANGEROUS THAN CONVENTIONAL CRIMINALS IS LAUGHABLE IN DOING SO HE CONSPICUOUSLY AVOIDS DISCUSSING HOW PUTTING CLEAN NONTOXIC NONHAZARDOUS FILL MATERIAL AND TOPSOIL ON ONE'S OWN PROPERTY AND FOR THAT MATTER MOST OTHER MINOR ENVIRONMENTAL INFRACTIONS VICTIMIZES WHOLE COMMUNITIES AND CAUSES INJURIES THAT LINGER FOR YEARS AND EVEN GENERATIONS YOUR EDITORIAL PROPERLY DID NOT SEEK EXONERATION FOR THOSE WHO COMMIT SIGNIFICANT AND CONSCIOUS ACTS OF ENVIRONMENTAL DEVASTATION YET MR TURLEY AND COMPANY ARE INCAPABLE OF MAKING RATIONAL DIFFERENTIATIONS PREFERRING INSTEAD TO LUMP ALL ENVIRONMENTAL VIOLATORS TOGETHER THERE ARE TWO DISTINCT STEPS IN THE CRIMINAL PROCESS PROSECUTION AND PUNISHMENT WITH RESPECT TO THE FIRST THERE ARE NO CRIMINAL ENVIRONMENTAL LAWS AS MR TURLEY SUGGESTS RATHER ENVIRONMENTAL VIOLATIONS CAN BE ADDRESSED ADMINISTRATIVELY CIVILLY OR BY CRIMINAL PROSECUTION BANK ROBBERS AND OTHER CONVENTIONAL CRIMINALS SIMPLY CANNOT BE SUED CIVILLY OR HAULED BEFORE AN ADMINISTRATIVE LAW JUDGE PRECISELY BECAUSE SOCIETY HAS GIVEN ENVIRONMENTAL REGULATORS THE DISCRETION TO USE AN ARSENAL OF CORRECTIVE WEAPONS CRIMINAL PROSECUTION SHOULD BE USED ONLY AS A LAST RESORT AS THENEPA CHIEF WILLIAM REILLY MISLED CONGRESS INTO THINKING WAS THE GOVERNMENT'S POLICY ARBITRARY CRIMINAL PROSECUTION FOR THESE MINOR REGULATORY CASES IS BAD ENOUGH WHAT'S WORSE IS THE GRATUITOUS AND UNJUST PUNISHMENT SOUGHT FOR AND METED OUT TO FIRSTTIME OFFENDERS SIXMONTHS FOR MR ELLEN AND 27 MONTHS FOR MR POZSGAI RATHER THAN PROBATION COMMUNITY SERVICE AND REASONABLE FINES THAT CONGRESS INTENDED THE SENTENCING GUIDELINES TO REFLECT FOR THESE KINDS OF CRIMES AND CRIMINALS ZOE BAIRD INTENTIONALLY VIOLATED THE IMMIGRATION LAWS BUT NO ONE WOULD SUGGEST THAT SHE BE CRIMINALLY PROSECUTED LET ALONE SENT TO PRISON FOR SIX MONTHS TO THREE YEARS YET MR TURLEY'S KIND OF THINKING WOULD DEMAND SUCH AN UNJUST RESULT UNFORTUNATELY MR TURLEY IS NOT SIMPLY SPREADING HIS EXTREMIST VIEWS TO HIS LAW STUDENTS OR TO YOUR READERS AS A MEMBER OF AND REPORTER FOR THE US SENTENCING COMMISSION'S CONTROVERSIAL ADVISORY COMMITTEE ON ENVIRONMENTAL CRIMES HE HAS BEEN WORKING FOR THE PAST YEAR BEHIND CLOSED DOORS TO PROPOSE PUNISHMENTS FOR RESPONSIBLE BUSINESSES THAT ARE CAUGHT UP IN THE EPA'S REGULATORY MAZE IF HE GETS HIS WAY THOSE PROPOSED SENTENCING GUIDELINES DUE OUT IN A FEW WEEKS SHOULD ALARM ANY BUSINESS LARGE OR SMALL THAT IS AT THE MERCY OF MISGUIDED REGULATORS AND HEADLINEGRABBING PROSECUTORS IF MR TURLEY BELIEVES THAT PROTECTING THE ENVIRONMENT IS SO IMPORTANT THAT WE SHOULD JAIL INDIVIDUALS WHO INTENTIONALLY OR EVEN ACCIDENTALLY RUN AFOUL OF REGULATIONS HE SHOULD BE MORE FORTHRIGHT AND JUST SAY SO HIS LETTER SUGGESTS THAT ZEALOUS ENVIRONMENTAL PROSECUTORS HAVE NO INTEREST IN PURSUING INDIVIDUALS WHOSE LEGITIMATE BUSINESS DECISIONS GO AWRY BUT THAT'S EXACTLY WHAT'S GOING ON AND IT'S ENTIRELY PROPER FOR YOUR NEWSPAPER TO EXPRESS CONCERN OVER THE MATTER CONSIDER THE CASE OF SAN FRANCISCO ATTORNEY WILLIAM SCHERER IN MAY 1991 HE WAS CHARGED WITH A FELONY BECAUSE OF THE LEGAL ADVICE HE GAVE TO A CLIENT COMPANY SHORTLY AFTER HIS CLIENT HAD FILED FOR BANKRUPTCY IT WAS EVICTED FROM ONE OF ITS WAREHOUSES SOME 55GALLON DRUMS OF RADIOACTIVE WASTE WERE APPARENTLY LEFT BEHIND WHEN THE COMPANY MOVED OUT WHEN THE LANDLORD EXECUTED A WRIT OF POSSESSION AGAINST THE WAREHOUSE MR SCHERER TOLD THE LANDLORD'S COUNSEL THAT HIS CLIENT COULD NOT PAY TO HAVE THE DRUMS PROPERLY REMOVED WITHOUT VIOLATING BANKRUPTCY LAW THE STATE REGULATORY AUTHORITIES WERE ADVISED ABOUT THE SITUATION AND THE INVESTIGATION BEGAN BANKRUPTCY LAWYERS SEEM TO DISAGREE ABOUT WHETHER MR SCHERER'S ADVICE AMOUNTED TO MALPRACTICE BUT THE REAL CONTROVERSY CONCERNED THE ISSUE OF WHETHER MR SCHERER'S CONDUCT AMOUNTED TO A CRIMEESPECIALLY IN LIGHT OF THE FACT THERE WAS NO ENVIRONMENTAL DAMAGE THE PROSECUTORS THOUGHT IT DID AND THEY PURSUED A CRIMINAL NEGLIGENCE THEORY IT IS TRUE OF COURSE THAT THE ENVIRONMENTAL AREA ISN'T THE ONLY PLACE WHERE THE LAW CRIMINALIZES CONDUCT BASED ON THEORIES OF NEGLIGENCE THE POINT HERE IS THAT SUCH CRIMES HAVE ALWAYS BEEN THE VERY LIMITED EXCEPTION TO THE COMMONLAW NOTION THAT CRIMINAL CONDUCT CONSISTS OF AN EVIL ACT AND AN EVIL PURPOSE OR INTENT THE QUESTION OF WHETHER VIOLATIONS OF ENVIRONMENTAL REGULATIONS BELONG IN THAT EXCEPTIONAL AREA OUGHT TO BE CONSIDERED CAREFULLY BY OUR POLICY MAKERS IT IS DISTURBING THAT MANY POLITICIANS SEEM TO AGREE WITH MR TURLEY THAT THERE ARE TOO FEW PROSECUTIONS IN THOSE AREAS WHERE UNINTENTIONAL VIOLATIONS OF ENVIRONMENTAL REGULATIONS HAVE ALREADY BEEN CRIMINALIZED THAT VIEW RESTS UPON THE TROUBLING ASSUMPTION THAT THERE'S LITTLE DIFFERENCE BETWEEN INDIVIDUALS LIKE MR SCHERER AND COMMON STREET THUGS 9302220100 930222 TECHNOLOGY ZEOS REPORTS A LOSS FOR FOURTH QUARTER MINNEAPOLIS ZEOS INTERNATIONAL LTD REPORTED A FOURTHQUARTER NET LOSS OF 72 MILLION OR 83 CENTS A SHARE INCLUDING 11 MILLION IN ONETIME CHARGES COMPARED WITH NET INCOME OF 32 MILLION OR 33 CENTS A SHARE A YEAR EARLIER THE STRUGGLING PERSONALCOMPUTER MAKER WHICH HAS BEEN HIT HARD BY THE INDUSTRY PRICE WAR SAID REVENUE PLUNGED 34 DURING THE QUARTER TO 469 MILLION FROM 706 MILLION AS PART OF ITS EFFORT TO TRIM COSTS THE COMPANY SAID IT IS CLOSING ITS SEPARATE TELEMARKETING SUBSIDIARY IN THE NETHERLANDS AND IS MERGING THE OPERATIONS OF ITS OCCIDENTAL SYSTEMS BRAND SUBSIDIARY INTO ITS PRINCIPAL OPERATIONS IT WILL CONTINUE TO SELL THE OCCIDENTAL BRAND AS A SEPARATE DEEPDISCOUNT LINE THE MOVES RESULTED IN FOURTHQUARTER CHARGES OF 11 MILLION OR 12 CENTS A SHARE THE COMPANY HAS ALSO BEEN REDIRECTING ITS FOCUS TO ITS TRADITIONAL BUSINESS SELLING COMPUTERS THROUGH THE MAIL IN THE FOURTH QUARTER MAILORDER SALES REPRESENTED 98 OF REVENUE VS 72 A YEAR EARLIER THE REMAINDER WERE SOLD MOSTLY THROUGH THE SOCALLED MASS MERCHANT CHANNEL 9302220099 930222 WESTPAC'S NEW CHIEF SAYS BANK IS ON ROAD TOWARD A RECOVERY SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA WESTPAC BANKING CORP IS RECOVERING FROM THE TROUBLES OF THE PAST FEW YEARS ROBERT JOSS THE BANK'S NEW MANAGING DIRECTOR SAID MR JOSS AN AMERICAN WHO UNTIL JANUARY WAS VICE CHAIRMAN OF WELLS FARGO & CO TOOK CHARGE AT WESTPAC EARLIER THIS MONTH WESTPAC IS DEFINITELY ON THE ROAD TO RECOVERY IT WILL EMERGE IN THE 1990S IN MY JUDGMENT AS AUSTRALIA'S BEST BANK GIVING THE BEST VALUE FOR CUSTOMERS BEING THE BEST PLACE TO INVEST FOR SHAREHOLDERS AND THE BEST PLACE TO WORK FOR EMPLOYEES JOSS TOLD A MEDIA CONFERENCE FRIDAY I'M THOROUGHLY CONVINCED THAT THIS WILL BE ACHIEVABLE HE SAID MR JOSS WAS APPOINTED TO WESTPAC AFTER THE RESIGNATION IN DECEMBER OF FRANK CONROY MR CONROY QUIT AFTER KERRY PACKER AUSTRALIA'S RICHEST MAN WAS APPOINTED TO THE BOARD AFTER BUYING AROUND 10 OF THE BANK MR PACKER HAS SINCE LEFT THE BOARD DUE TO A DISPUTE WITH OTHER DIRECTORS OVER THE SPEED OF WESTPAC'S RECOVERY PROGRAM IN NOVEMBER WESTPAC ANNOUNCED A LOSS OF 156 BILLION AUSTRALIAN DOLLARS US107 BILLION FOR THE YEAR ENDED SEPT 30 DUE TO WRITEDOWNS OF PROPERTY LOANS SINCE OCTOBER NINE WESTPAC DIRECTORS HAVE RESIGNED MR JOSS DECLINED TO COMMENT SPECIFICALLY ON WESTPAC'S PROPERTY EXPOSURE HE SAID WESTPAC MUST CUT COSTS BUT DIDN'T SPECIFY HOW 9302220098 930222 CLINTON IS TO UNVEIL TODAY NEW POLICY ON TECHNOLOGY SANTA MONICA CALIF PRESIDENT CLINTON WILL OUTLINE THIS MORNING A NEW TECHNOLOGY POLICY FOR THE NATION WHEN HE SPEAKS AT SILICON GRAPHICS A HIGHTECHNOLOGY FIRM NEAR SAN JOSE CALIF A MAJOR THEME WILL BE THE NEED TO REDIRECT SOME OF THE BILLIONS OF DOLLARS SPENT ON RESEARCH AND DEVELOPMENT OF MILITARY TECHNOLOGY INTO CIVILIAN USE ACCORDING TO SENIOR WHITE HOUSE OFFICIALS IN ADDITION THE POLICY IS LIKELY TO EMPHASIZE THE NEED FOR GOVERNMENT AND PRIVATE INDUSTRY TO FORM PARTNERSHIPS TO CREATE JOBS AND TURN NEW TECHNOLOGY INTO MARKETABLE PRODUCTS IN A SPEECH HERE YESTERDAY TO PROMOTE HIS ECONOMIC PLAN THE PRESIDENT SAID HE WILL ANNOUNCE A NEW TECHNOLOGY POLICY MR CLINTON ALSO PLANS TO VISIT A BOEING CO PLANT IN EVERETT WASH TO DISCUSS THE NEED TO REVIVE THE NATION'S AIRCRAFT AND AEROSPACE INDUSTRIES THE PRESIDENT SAID YESTERDAY THAT THE NATION MUST MOVE TOWARD FORGING AN INDUSTRIAL STRATEGY AND THAT SUCH A STRATEGY HAS PAID BIG REWARDS FOR EUROPEANS BUT HAS COST AMERICANS NOTING THAT BOEING WAS LAYING OFF 23000 WORKERS HE SAID IT WAS ONLY PARTLY DUE TO DEFENSE CUTS AND HE CRITICIZED THE PREVIOUS REPUBLICAN ADMINISTRATIONS THE LAST SEVERAL YEARS WE HAVE STOOD BY WHILE EUROPE INVESTED 26 BILLION IN TAXPAYER MONEY TO BUILD THE AIRBUS TO PUSH AMERICAN PEOPLE OUT OF WORK NOT BECAUSE THEY WON ANY SORT OF FREEMARKET COMPETITION BUT BECAUSE EUROPE HAD A THEORY ABOUT HOW TO GET HIGHWAGE JOBS GOING INTO THE 21ST CENTURY IN AEROSPACE 9302220097 930222 EC COMMISSION EASES ITS STANCE ON HDTV AFTER SOME CRITICISM SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION AMENDED ITS ILLFATED BID FOR A EUROPEAN VERSION OF HIGHDEFINITION TELEVISION OR HDTV BUT DIDN'T ABANDON THE PROJECT FOR WHICH IT SEEKS HEFTY RESEARCH FUNDING IT SAID RAPID ADVANCES IN DEVELOPING DIGITAL TELEVISION SIGNALS MEANT IT SHOULD NO LONGER LIMIT ITS BACKING TO DEVELOPMENT IN EUROPE OF AN INTERMEDIATE PREDIGITAL BROADCAST NORM KNOWN AS D2MAC THE COMMISSION HAS BEEN CRITICIZED FOR PUSHING THAT NORM WHILE THE US AND JAPAN FORGED AHEAD WITH RESEARCH INTO FULLY DIGITAL TELEVISION WHICH IS NOW EXPECTED TO BE AVAILABLE BY 1997 THERE IS NO QUESTION OF THE EC ABANDONING HIGHDEFINITION TELEVISION SAID A SPOKESMAN FOR EC INDUSTRY COMMISSIONER MARTIN BANGEMANN INSTEAD MR BANGEMANN WANTS A SHIFT OF EMPHASIS FROM PROMOTING AN EC BROADCAST NORM TO PRODUCTION OF WIDESCREEN TV SETS WITHOUT FAVORING ANY PARTICULAR NORM FOUR SUCH NORMS ARE UNDER STUDY IN EUROPE AND ELSEWHERE INCLUDING ONE JOINTLY DEVELOPED BY PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THOMSON SA OF FRANCE LAST YEAR THE COMMISSION PROPOSED THE 12 EC STATES PROVIDE 1 BILLION IN FUNDING TO HELP INSTALL THE D2MAC STANDARD IN THE COMMUNITY BY DROPPING ITS EMPHASIS ON THE D2MAC BROADCAST NORM OFFICIALS SAID THE COMMISSION HOPES THE EC STATES CAN AGREE TO PROVIDE FUNDS INDUSTRY MINISTERS OF THE MEMBER STATES ARE TO DISCUSS THIS MAY 10 THE TECHNOLOGY IMPLIES WHOLESALE CHANGES IN TELEVISION EQUIPMENT FROM CAMERAS TO SETS THE EC ESTIMATES THE VALUE OF ADVANCED TELEVISION TECHNOLOGY AT 150 BILLION 9302220096 930222 BUSINESS BRIEF ASAHI BREWERIES LTD UNCONSOLIDATED PRETAX PROFIT FELL 20 DURING THE YEAR ASAHI BREWERIES LTD A MAJOR JAPANESE BEER MAKER REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT DROPPED 20 DURING THE YEAR FROM THE YEAR BEFORE DUE TO A SHARP FALL IN INTEREST INCOME ASAHI SAID ITS BEER SALES SHOULD CONTINUE TO POST FIRM GROWTH THIS YEAR FOR THE CURRENT YEAR ASAHI FORECASTS A 33 RISE IN UNCONSOLIDATED PRETAX PROFIT TO 145 BILLION YEN 1216 MILLION THE COMPANY EXPECTS ITS NET PROFIT TO RISE 10 TO 45 BILLION YEN SALES WILL RISE 51 TO 810 BILLION YEN ASAHI PREDICTED PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES NET PROFIT REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND PAYMENTS OF TAXES UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES ASAHI SAID ITS VIGOROUS COST CUTTING EFFORTS AND ITS INCREASE IN SALES HELPED IT POST A 91 SURGE IN OPERATING PROFIT DURING THE LATEST YEAR TO 3594 BILLION YEN 9302220095 930222 PIONEER ELECTRONIC'S PRETAX PROFIT DROPPED 54 IN ITS 3RD QUARTER TOKYO PIONEER ELECTRONIC CORP REPORTED CONSOLIDATED PRETAX PROFIT TUMBLED 54 IN THE FISCAL THIRD QUARTER ENDED DEC 31 TO 1143 BILLION YEN 967 MILLION FROM 2467 BILLION YEN THE YEAR BEFORE AMID WEAK SALES AND THE NEGATIVE IMPACT OF THE YEN'S STRENGTH NET PROFIT FELL 61 TO 491 BILLION YEN FROM 1252 BILLION YEN ACCORDING TO A SPOKESMAN FOR THE COMPANY PIONEER NOW SEES PARENT COMPANY PRETAX PROFIT AT 163 BILLION YEN DOWN 25 FROM A NOVEMBER FORECAST OF 218 BILLION YEN AND DOWN 51 FROM 3310 BILLION YEN IN FISCAL 1991 UNCONSOLIDATED NET PROFIT IS NOW SEEN AT 10 BILLION YEN DOWN 19 FROM THE PRIOR FORECAST OF 123 BILLION YEN AND DOWN 44 FROM 1781 BILLION YEN LAST YEAR PARENT COMPANY SALES ARE NOW EXPECTED AT 384 BILLION YEN DOWN 53 FROM THE ORIGINAL FORECAST OF 4055 BILLION YEN AND 77 BELOW LAST YEAR'S 41592 BILLION YEN THE SPOKESMAN SAID 9302220094 930222 WHO'S NEWS MICRONICS COMPUTERS INC MICRONICS COMPUTERS INC FREMONT CALIF STEVEN P KITROSSER 49 WAS NAMED CHAIRMAN OF THIS COMPUTER COMPANY SUCCEEDING WILLIAM M SELBACH 68 WHO IS RETIRING MR KITROSSER WILL REMAIN CHIEF EXECUTIVE OFFICER MICRONICS ALSO APPOINTED FOUR DIRECTORS W CHARLES HAZEL 58 A PARTNER WITH BAY MANAGEMENT CO LEON MALMED 55 VICE PRESIDENT OF WORLDWIDE SALES AND MARKETING FOR SUNDISK CORP GEORGE D WELLS 57 PRESIDENT OF EXAR CORP AND DEAN CHANG 40 MICRONICS' SENIOR VICE PRESIDENT OF RESEARCH AND DEVELOPMENT DEPARTING BOARD MEMBERS IN ADDITION TO MR SELBACH ARE CHUCK K CHAN 42 AND DADO BANATAO 46 THE APPOINTMENTS INCREASE THE BOARD'S SIZE TO EIGHT FROM SEVEN 9302220093 930222 BUSINESS BRIEF LEGG MASON INC COMPANY RECEIVES APPROVAL FOR TRUST FIRM'S OPERATIONS LEGG MASON INC SAID IT RECEIVED REGULATORY APPROVAL TO BEGIN OPERATIONS FOR ITS TRUST COMPANY THE GOAHEAD COMES MORE THAN THREE YEARS AFTER THE BALTIMORE BROKERAGE FIRM APPLIED TO THE MARYLAND BANK COMMISSIONER'S OFFICE FOR AUTHORIZATION OF THE TRUST COMPANY IN LATE 1989 THE OPERATION LEGG MASON TRUST CO ALREADY IS CHARTERED AND INCORPORATED OUR PLAN IS TO ADDRESS THE SERVICES AND NEEDS OF LEGG MASON CLIENTS INCLUDING INDIVIDUALS AS WELL AS PENSION PLANS SAID ARTHUR SIMS THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEGG MASON TRUST WE'RE SEEKING NEW BUSINESS AND HOPE TO OFFER THE TRUST COMPANY'S SERVICES TO EXISTING CLIENTS ALTHOUGH MR SIMS DECLINED TO PROJECT TRUST REVENUE HE DID SAY LEGG MASON HOPES TO INCREASE THE TRUST BUSINESS' ASSETS UNDER MANAGEMENT TO SEVERAL HUNDRED MILLIONS OF DOLLARS IN THE FIRST TWO TO THREE YEARS OF OPERATION TRUST COMPANIES ACT AS AGENTS FOR INDIVIDUALS OR BUSINESSES IN A VARIETY OF FINANCIAL MATTERS 9302220092 930222 MARKETING & MEDIA CABLEVISION SYSTEMS EXPECTED TO DISCLOSE PLAN FOR NEW NETWORK NEW YORK CABLEVISION SYSTEMS CORP THIS WEEK IS EXPECTED TO ANNOUNCE PLANS TO ROLL OUT THE NATION'S LARGEST ELECTRONIC HIGHWAY TO HOMES IN NEW YORK AND LONG ISLAND FOLLOWING A SIMILAR ANNOUNCEMENT FROM TIME WARNER INC LAST MONTH THE FULLSERVICE FIBEROPTIC SYSTEM WHICH THE COMPANY SAYS IS NOW UNDER CONSTRUCTION WILL PROVIDE MOVIESONDEMAND PHONE SERVICES VIDEOCONFERENCING AND A VARIETY OF OTHER INFORMATION AND ENTERTAINMENT SERVICES CABLEVISION THE FOURTHLARGEST CABLE SYSTEM WITH 17 MILLION SUBSCRIBERS NATIONWIDE SERVES 800000 CABLE HOMES IN THE NEW YORK METROPOLITAN AREA AND LONG ISLAND TIME WARNER PLANS TO SWITCH ON AN ELECTRONIC SUPERHIGHWAY A HIGHCAPACITY COMPUTERIZED NETWORK IN SUBURBAN ORLANDO FLA IN EARLY 1994 THAT SYSTEM WOULD DEPLOY COMPUTERIZED OR DIGITAL SWITCHING TECHNOLOGY AND COMPUTERIZED STORAGE TO HOLD VAST LIBRARIES OF MOVIES AND INFORMATION MORE SUCH ANNOUNCEMENTS ARE LIKELY TO FOLLOW AS CABLE COMPANIES UPGRADE THEIR SYSTEMS TO COMPETE IN THE COMING WORLD OF 500 CHANNELS THE NEW SERVICES ARE EXPECTED TO OPEN UP NEW REVENUE STREAMS AS THE INDUSTRY MATURES AND SUBSCRIBER GROWTH SLOWS A CABLEVISION SPOKESPERSON DECLINED TO GIVE DETAILS ON THE PENDING ANNOUNCEMENT 9302220091 930222 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS ALL INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS AND THE NASDAQ OVERTHECOUNTER SECURITIES MARKET ANNOUNCED SEVEN NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS THE BIG BOARD BEGAN TRADING FIVE DIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANIES ALLAMERICAN TARGET TERM TRUST INC NEW YORK UNDER AAT BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST INC NEW YORK UNDER BKN HYPERION 2005 INVESTMENT GRADE OPPORTUNITY TERM TRUST INC NEW YORK UNDER HTO THE BENEFICIAL INTEREST UNITS OF INTERCAPITAL INSURED MUNICIPAL INCOME TRUST NEW YORK UNDER IIM AND NUVEEN PREMIUM INCOME MUNICIPAL FUND 4 INC CHICAGO ILL UNDER NPT THE BIG BOARD ALSO BEGAN TRADING THE BENEFICIAL INTEREST UNITS OF INTERCAPITAL CALIFORNIA INSURED MUNICIPAL INCOME TRUST A CLOSEDEND NONDIVERSIFIED MANAGEMENT INVESTMENT COMPANY IN NEW YORK UNDER IIC CHIC BY HIS INC NEW YORK A MAKER OF JEANS AND OTHER CLOTHES UNDER JNS AND GALEN HEALTH CARE INC LOUISVILLE KY A SPINOFF OF HOSPITAL OPERATOR HUMANA INC UNDER GHC PETERSBURG LONG DISTANCE INC TORONTO ONTARIO A DIVERSIFIED HOLDING COMPANY OPERATING THROUGH UNITS IN ST PETERSBURG RUSSIA AND BRITAIN AND CURRENTLY TRADING ON THE TORONTO STOCK EXCHANGE BEGAN TRADING UNDER PLDIF JMAR INDUSTRIES INC SAN DIEGO A MAKER OF LASER AND OPTICAL SYSTEMS PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET BEGAN TRADING UNDER JMAR THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON BREED TECHNOLOGIES BOONTON TOWNSHIP NJ A MAKER OF SENSORS FOR AIRBAGS IN CARS WHILE THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON BANK SOUTH CORP ATLANTA A BANK HOLDING CONCERN 9302220090 930222 FTC SEEKS TO BLOCK PURCHASE OF FACILITY BY COLUMBIA HOSPITAL FORT WORTH TEXAS THE FEDERAL TRADE COMMISSION IS TRYING TO BLOCK COLUMBIA HOSPITAL CORP'S PROPOSED ACQUISITION OF MEDICAL CENTER HOSPITAL IN PUNTA GORDA FLA CHARGING THAT THE PURCHASE WOULD VIOLATE ANTITRUST LAWS THE ACQUISITION WOULD HAVE NUMEROUS ANTICOMPETITIVE EFFECTS IN PART BECAUSE COLUMBIA ALREADY OWNS A NEARBY HOSPITAL THE AGENCY SAID COLUMBIA DENIED THE ALLEGATIONS AND SAID IT IS CONFIDENT GIVEN THE FACTS OF THIS CASE THAT WE WILL PREVAIL IN COURT ON THIS ISSUE COLUMBIA HAS AGREED TO BUY THE HOSPITAL FROM THE ADVENTIST HEALTH SYSTEMSUNBELT IN EXCHANGE FOR THREE EXISTING HOSPITALS THE FTC PUT THE VALUE OF THE TRANSACTION AT ABOUT 40 MILLION A US DISTRICT COURT JUDGE HAS ALREADY ISSUED A TEMPORARY RESTRAINING ORDER PREVENTING COLUMBIA FROM PURSUING THE ACQUISITION A HEARING IS SET IN TAMPA FEDERAL COURT FOR MARCH 4 TO HEAR THE FTC'S REQUEST FOR A PRELIMINARY INJUNCTION TO BAR THE ACQUISITION UNTIL THE CONCLUSION OF A TRIAL BEFORE AN FTC ADMINISTRATIVE LAW JUDGE IN NATIONAL OVERTHECOUNTER TRADING FRIDAY COLUMBIA CLOSED AT 1850 DOWN 125 9302220089 930222 SHELL'S SPANISH UNIT SEEKS TO BUY ASSETS EXPROPRIATED IN '20S SPECIAL TO THE WALL STREET JOURNAL MADRID SHELL ESPANA SA THE SPANISH UNIT OF ROYAL DUTCH/SHELL GROUP IS PRESSING SPAIN'S GOVERNMENT FOR PERMISSION TO BUY BACK ASSETS EXPROPRIATED ABOUT 65 YEARS AGO UNDER A SHORTLIVED MILITARY GOVERNMENT SHELL ESPANA'S REQUEST IS THE UNLIKELY OFFSHOOT OF THE SPANISH GOVERNMENT'S EFFORTS TO MEET EUROPEAN COMMUNITY REQUIREMENTS TO LIBERALIZE ITS PETROLEUM SECTOR AND DISMANTLE ITS GASOLINEDISTRIBUTION MONOPOLY CIA ARRENDATARIA DEL MONOPOLIO DE PETROLEOS OR CAMPSA A SHELL ESPANA SPOKESMAN SAID IT HOPES THAT BUYING BACK THE ASSETS WILL PROVE CONSIDERABLY CHEAPER THAN BUYING NEW LAND AND BUILDING NEW FACILITIES IT ALSO BELIEVES IT'S LEGALLY ENTITLED TO THEM ALTHOUGH SHELL DOESN'T SAY SO THE COMPANY IS BELIEVED TO BE INTERESTED IN USING ITS CLAIM AS A BARGAINING CHIP TO OPEN NEGOTIATIONS WITH SPANISH STATECONTROLLED OIL COMPANY REPSOL SA OVER A POSSIBLE ASSET SWAP THE STATE MONOPOLY WAS SET UP BY THE GOVERNMENT OF GEN MIGUEL PRIMO DE RIVERA THROUGH A 1927 DECREE THAT NATIONALIZED ASSETS OWNED BY THE THREE OIL COMPANIES THEN OPERATING IN SPAIN SHELL ESPANA A UNIT OF WHAT IS NOW EXXON CORP AND PETROLEOS DE PORTO PI OWNED BY SPAIN'S MARCH FAMILY 9302220088 930222 BUSINESS BRIEF DEUTSCHE GENOSSENSCHAFTS BANK BANK SAYS OPERATING PROFIT MORE THAN TRIPLED IN 1992 DEUTSCHE GENOSSENSCHAFTS BANK REPORTED THAT ITS FULL OPERATING PROFIT IN 1992 MORE THAN TRIPLED ON THE BACK OF A 72 RISE IN NET INTEREST INCOME THE GERMAN BANK WHICH ISN'T PUBLICLY TRADED SAID FULL OPERATING PROFIT SURGED TO 340 MILLION MARKS 2083 MILLION IN 1992 FROM 94 MILLION MARKS A YEAR EARLIER THE FULL OPERATING PROFIT INCLUDES TRADING RESULTS FROM DG BANK'S OWN ACCOUNT WHICH JUMPED TO 143 MILLION MARKS FROM 67 MILLION MARKS PARTIAL OPERATING PROFIT ALSO SURGED TO 200 MILLION MARKS FROM 27 MILLION MARKS FULL OPERATING PROFIT AT A GERMAN BANK IS THE PROFIT BEFORE TAXES FROM NET INCOME FROM INTEREST COMMISSIONS AND TRADING GAINS OR LOSSES FROM THE BANK'S OWN ACCOUNT LESS ADMINISTRATIVE COSTS PARTIAL OPERATING PROFIT DOESN'T INCLUDE GAINS OR LOSSES FROM TRADING ON THE BANK'S OWN ACCOUNT NET INTEREST INCOME JUMPED TO 690 MILLION MARKS FROM 402 MILLION MARKS COMMISSION NET INCOME ROSE TO 261 MILLION MARKS FROM 239 MILLION MARKS 9302220087 930222 LETTERS TO THE EDITOR FORGET ABOUT FANATICS EGYPT MEANS BUSINESS I MUST COMMENT ON YOUR ARTICLE BULLY PULPIT EGYPTIAN JIHAD LEADER PREACHES HOLY WAR TO BROOKLYN MUSLIMS PAGE ONE JAN 6 TO COMPARE THE SOCALLED PREACHER TO AYATOLLAH KHOMEINI WITH A HINT THAT HE MAY HAVE ANY CAPABILITY OF DESTABILIZING THE EGYPTIAN GOVERNMENT DEFINITELY INDICATES ONE OF TWO THINGS YOUR COMPLETE IGNORANCE AND NAIVETE OR AN INTENTION ON THE PART OF SOMEONE TO DAMAGE EGYPT'S IMAGE LET ME REMIND YOU THAT EGYPT IS NOT IRAN AND THAT NONE OF THE SOCALLED FUNDAMENTALISTS IN EGYPT RULE EVEN ONE INCH OF A NARROW ALLEY IN THAT VERY STABLE COUNTRY I DARE ANY CORRESPONDENT TO GO TO EGYPT AND ASK THE PEOPLE IN THE STREETS IF THE PROSPECT OF A KHOMEINILIKE GOVERNMENT IN EGYPT ATTRACTS OR CONCERNS THEM THE VERY SIMPLE ANSWER IS THAT THE BOTTOM LINE RIGHT NOW IN EGYPT IS THE SAME AS IN THE USTHE ECONOMY AND I REPEAT THE ECONOMY FANATICS OVERTHROWING THE GOVERNMENT ARE NOT A PROSPECT AT ALL EXCEPT IN THE FANTASIES OF THE WESTERN MEDIA AND THE FAKE SOCALLED MIDDLE EAST EXPERTS WE SEE FREQUENTLY ON TV STIMULATING THE ECONOMY IS NAGGAR TOURS DOES BUSINESS IN EGYPT MOROCCO GREECE AND TURKEY 9302220086 930222 ARKLA CREDIT RATINGS ON 22 BILLION OF DEBT RECEIVE DOWNGRADES NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE CREDIT RATINGS ON ABOUT 22 BILLION OF ARKLA INC'S DEBT THE RATINGS AGENCY CITED CONTINUED WEAK FINANCIAL RESULTS FROM THE COMPANY'S LARGEST ASSET THE AER PIPELINE AND SAID FURTHER MEANINGFUL REDUCTION IN DEBT IS UNLIKELY HOWEVER MOODY'S NOTED THAT RECENT ASSET SALES HAVE REDUCED LIQUIDITY RISK FOR THE SHORT TERM ARKLA'S SENIOR UNSECURED DEBT WAS DOWNGRADED TO BA2 FROM BA1 SENIOR UNSECURED SHELF REGISTRATION TO PBA2 FROM PBA1 AND PREFERRED STOCK TO BA FROM BA3 THE SHREVEPORT LA NATURALGAS TRANSPORTATION MARKETING AND DISTRIBUTION COMPANY SOLD ASSETS SUCH AS ITS OIL AND GAS EXPLORATION AND PRODUCTION BUSINESS TO RETIRE BANK DEBT AND REDUCE ITS INTEREST BURDEN FURTHER MOODY'S EXPECTS STRONG INCOME AND CASH FLOW FROM ARKLA'S GAS DISTRIBUTION PROPERTIES TO SUPPORT THE NEW RATINGS CASH FLOW FROM CONTINUING OPERATIONS WILL BE SUFFICIENT TO COVER FIXED CHARGES HOWEVER MOODY'S SAID ARKLA'S DEBT LEVEL IS STILL TOO HIGH RELATIVE TO PROJECTED CASH FLOW AND WILL CONTINUE TO IMPINGE ON ARKLA'S FINANCIAL FLEXIBILITY 9302220084 930222 BRAMALEA'S CREDITORS GIVE APPROVAL TO PLAN ON DEBT RESTRUCTURING TORONTO BRAMALEA LTD'S CREDITORS APPROVED THE COMPANY'S PLAN TO RESTRUCTURE ITS 46 BILLION CANADIAN DOLLARS US365 BILLION OF LONGTERM DEBT BRAMALEA AN INSOLVENT REAL ESTATE CONCERN BASED IN TORONTO SAID IT WILL SEEK FINAL APPROVAL FOR THE PLAN FROM THE ONTARIO COURT OF JUSTICE WEDNESDAY IN DECEMBER BRAMALEA FILED FOR CANADA'S EQUIVALENT OF CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM CREDITORS UNDER THE RESTRUCTURING PLAN MOST SECURED CREDITORS WOULD CONTINUE TO RECEIVE FULL PAYMENT OF THE INTEREST ON THEIR LOANS PRINCIPAL REPAYMENTS WOULD BE FUNDED LARGELY BY BRAMALEA'S PROPOSED SALE OVER FIVE YEARS OF ABOUT HALF ITS C6 BILLION IN ASSETS THE COMPANY'S UNSECURED CREDITORS WOULD BE ISSUED NEW EQUITY BRAMALEA IS 72OWNED BY TRIZEC CORP A CALGARY ALBERTA REAL ESTATE CONCERN THAT IS CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN UNDER THE PLAN TRIZEC'S HOLDING WOULD SHRINK TO ABOUT 20 OF BRAMALEA'S STOCK 9302220083 930222 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK CHARLOTTE KANDEL 42 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF WORLDWIDE PUBLICITY AND PROMOTION FOR THIS MEDIA AND ENTERTAINMENT COMPANY'S WARNER BROS DIVISION THE POST IS NEW MS KANDEL WAS VICE PRESIDENT OF DOMESTIC PUBLICITY AND PROMOTION NOW A PART OF HER NEW POST 9302220082 930222 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ATHENA NEUROSCIENCES INC THREE MILLION COMMON SHARES VIA PAINEWEBBER INC BANCO NACIONAL DE COMERCIO EXTERIOR SNC 250 MILLION OF NOTES VIA MERRILL LYNCH & CO BE AEROSPACE INC 100 MILLION OF SENIOR UNSECURED NOTES VIA MERRILL LYNCH BOCA RESEARCH INC INITIAL 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC CALIFORNIA MICROWAVE INC 22 MILLION COMMON SHARES VIA BEAR STEARNS & CO CARDIOVASCULAR IMAGING SYSTEMS INC TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES CENTRAL HUDSON GAS & ELECTRIC CORP 700000 COMMON SHARES VIA KIDDER PEABODY & CO CHIPSOFT INC 34 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO CONSOLIDATED CIGAR CORP 85 MILLION OF SENIOR SUBORDINATED NOTES VIA FIRST BOSTON CORP DEAN WITTER DISCOVER & CO INITIAL 295 MILLION COMMON SHARES VIA DEAN WITTER REYNOLDS INC ENERGY BIOSYSTEMS CORP INITIAL 24 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC EZCORP INC TWO MILLION CLASS A SHARES VIA KIDDER PEABODY INSIGHT COMMUNICATIONS CO 109 MILLION OF SENIOR SUBORDINATED NOTES VIA LAZARD FRERES & CO INTEGRATED CIRCUIT SYSTEMS INC TWO MILLION COMMON SHARES VIA ALEX BROWN & SONS INTERCITY PRODUCTS CORP 125 MILLION OF SENIOR SECURED NOTES VIA CITICORP SECURITIES MARKETS INC INTERNEURON PHARMACEUTICALS INC THREE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES KLLM TRANSPORT SERVICES INC ONE MILLION COMMON SHARES VIA ALEX BROWN & SONS KROGER CO 125 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO LANDSTAR HOLDING CORP INITIAL 4750000 MILLION COMMON SHARES VIA ALEX BROWN & SONS LENNAR CORP THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS MANUFACTURED HOMES COMMUNITIES INC INITIAL 44 MILLION COMMON SHARES VIA MERRILL LYNCH MARSH SUPERMARKETS INC 750000 CLASS B COMMON SHARES VIA KEMPER SECURITIES INC NEUREX CORP INITIAL THREE MILLION CLASS A COMMON SHARES VIA LEHMAN BROTHERS OCLASSEN PHARMACEUTICALS INC INITIAL THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS PHILADELPHIA ELECTRIC CO 150 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS AND 100 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS IN COMPETITIVE BID PUBLIC SERVICE ENTERPRISE GROUP INC 44 MILLION COMMON SHARES VIA MERRILL LYNCH SENSORMEDICS CORP INITIAL 17 MILLION COMMON SHARES VIA LEHMAN BROTHERS SERAGEN INC 25 MILLION COMMON SHARES VIA GOLDMAN SACHS SUPERMAC TECHNOLOGY INC ONE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES TECNOMATIX TECHNOLOGIES LTD INITIAL 25 MILLION COMMON SHARES VIA LEHMAN BROTHERS VICAL INC INITIAL THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST WASHINGTON HOMES INC INITIAL 16 MILLION COMMON SHARES VIA PAINEWEBBER WEIRTON STEEL CORP 125 MILLION OF SENIOR NOTES VIA LEHMAN BROTHERS CALIFORNIA 120 MILLION CLEANWATER GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING AT 1 PM EST ILLINOIS 100 MILLION SERIES R BUILD ILLINOIS SALES TAX REVENUE BONDS VIA COMPETITIVE BIDDING AT NOON EST DELAWARE 55 MILLION SERIES 1993A GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING AT 11 AM EST COLUMBUS OHIO 825 MILLION GENERAL OBLIGATION REFUNDING BONDS VIA A MERRILL LYNCH GROUP CONNECTICUT 225 MILLION SERIES 1993A REFUNDING BONDS VIA A REINOSO & CO INC GROUP HOUSTON 236 MILLION SERIES 1993D PUBLIC IMPROVEMENT REFUNDING BONDS VIA A GOLDMAN SACHS GROUP INDIANAPOLIS INDIANA 87 MILLION GAS UTILITY SYSTEM REVENUE REFUNDING BONDS VIA A LAZARD FRERES & CO GROUP INSURED BY THE FINANCIAL GUARANTY INSURANCE CO INTERMOUNTAIN POWER AGENCY UTAH 600 MILLION 1993 SERIES A POWER SUPPLY REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP LEE COUNTY SCHOOL BOARD FLA 85 MILLION CERTIFICATES OF PARTICIPATION VIA A BEAR STEARNS GROUP INSURED BY FINANCIAL SECURITY ASSURANCE MASSACHUSETTS 450 MILLION GENERAL OBLIGATION REFUNDING BONDS VIA A FIRST BOSTON GROUP NEW JERSEY HOUSING & MORTGAGE FINANCE AGENCY 1146 MILLION BONDS VIA A MERRILL LYNCH GROUP INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP NORTHERN CALIFORNIA TRANSMISSION AGENCY 200 MILLION BONDS VIA A LEHMAN BROTHERS GROUP INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP SAM RAYBURN MUNICIPAL POWER AGENCY TEXAS 877 MILLION REFUNDING REVENUE BONDS VIA A PAINEWEBBER GROUP TENNESSEE HOUSING DEVELOPMENT AGENCY 80 MILLION BONDS VIA A MERRILL LYNCH GROUP 9302220081 930222 REVIEW & OUTLOOK EDITORIAL ASIDES NAKED REASONING WE RECENTLY NOTED THAT THE UNIVERSITY OF CALIFORNIA AT BERKELEY HAD FINALLY COME TO ITS SENSES AND EXPELLED A STUDENT WHO SINCE SEPTEMBER HAD INSISTED ON WALKING AROUND CAMPUS IN THE NUDE TO PROTEST SOCIAL REPRESSION IT TURNS OUT WE GAVE BERKELEY OFFICIALS TOO MUCH CREDIT THE STUDENT WAS FINALLY THROWN OUT OF SCHOOL AFTER SOME FEMALE STUDENTS SAID HIS NUDITY CONSTITUTED SEXUAL HARASSMENT IN OTHER WORDS ONLY WHEN ARMED WITH A POLITICALLY CORRECT EXCUSE WERE UNIVERSITY OFFICIALS ABLE TO ACT SOME FOLKS OUT THERE WISH THE ADMINISTRATION WOULD NOW DRAW ON THE INFINITELY ELASTIC THEORIES OF POLITICAL CORRECTNESS TO CRACK DOWN ON THE GROWING ARMY OF FOULMOUTHED MENACING VAGRANTS WHO HAVE INVADED THE BERKELEY CAMPUS 9302220079 930222 WHO'S NEWS NORTHROP CORP NAMES SCOWCROFT TO BOARD NOMINATES 3 OTHERS LOS ANGELES NORTHROP CORP NAMED FORMER NATIONAL SECURITY ADVISER AND RETIRED AIR FORCE LT GEN BRENT SCOWCROFT TO ITS BOARD THE COMPANY ALSO NOMINATED THREE OTHER MEMBERS INCLUDING FORMER CONGRESSWOMAN BARBARA C JORDAN OTHER NEWLY NOMINATED MEMBERS SLATED FOR ELECTION AT A MAY SHAREHOLDERS MEETING ARE FORMER DEPUTY TREASURY SECRETARY JOHN E ROBSON AND JOHN BROOKS SLAUGHTER 58 YEARS OLD PRESIDENT OF OCCIDENTAL COLLEGE MR SCOWCROFT WHO IS 67 YEARS OLD SUCCEEDS JOSEPH A CALIFANO JR WHO THE COMPANY SAID IS RETIRING TO SPEND MORE TIME IN HIS ROLE AS FOUNDING CHAIRMAN AND PRESIDENT OF THE CENTER ON ADDICTION AND SUBSTANCE ABUSE AT COLUMBIA UNIVERSITY MS JORDAN 56 IS A PROFESSOR AT THE UNIVERSITY OF TEXAS AT AUSTIN MR ROBSON 62 RESIGNED HIS TREASURY POST THIS YEAR NORTHROP CHAIRMAN KENT KRESA SAID THE APPOINTMENTS WILL BRING DIVERSIFIED EXPERIENCE AT THE NATIONAL LEVEL TO THE COMPANY'S BOARD 9302220078 930222 BUSINESS BRIEFS UNOCAL CORP'S PUREGRO CO UNIT SOLD 33 RETAIL OUTLETS FOR AGRICULTURAL PRODUCTS TO CROP PRODUCTION SERVICES INC TERMS WEREN'T DISCLOSED ENCORE WIRE CORP LOST ITS LARGEST CUSTOMER WESTINGHOUSE ELECTRIC SUPPLY CO WHICH ACCOUNTED FOR 268 OF ITS 631 MILLION IN FISCAL 1992 SALES FLIGHTSAFETY INTERNATIONAL DIRECTORS AUTHORIZED THE BUYBACK OF AS MANY AS THREE MILLION SHARES OF THE COMPANY'S COMMON STOCK OUTSTANDING TIDEWATER INC AGREED TO PURCHASE 19 VESSELS FROM MCDERMOTT INTERNATIONAL INC TERMS WEREN'T DISCLOSED INCO LTD PLANS TO SPEND 401 MILLION CANADIAN DOLLARS US318 MILLION OVER THE NEXT TWO YEARS TO REOPEN ITS GARSON NICKEL MINE IN NORTHERN ONTARIO DIGITAL EQUIPMENT CORP RECEIVED A FIVEYEAR 28 MILLION COMPUTER SERVICE CONTRACT FROM CALDWELLSPARTIN 9302220077 930222 BUSINESS BRIEF DR PEPPER/SEVENUP COS LOSS TOTALS 599 MILLION AFTER 569 MILLION CHARGE DR PEPPER/SEVENUP COS POSTED A LOSS OF 599 MILLION FOR THE FOURTH QUARTER AFTER A DEBTRESTRUCTURING CHARGE OF 569 MILLION THE DALLAS COMPANY SAID OPERATING LOSSES NARROWED ON STRONG SALES GROWTH FOR ITS SOFT DRINKS THE LOSS BEFORE EXTRAORDINARY ITEMS WAS 29 MILLION COMPARED WITH A LOSS OF 12 MILLION A YEAR EARLIER THE YEAREARLIER NET LOSS WAS 146 MILLION AFTER A 25 MILLION CHARGE PERSHARE FIGURES WEREN'T DISCLOSED SALES ROSE 9 TO 1544 MILLION FROM 1411 MILLION A YEAR EARLIER WE EXPERIENCED STRONG VOLUME INCREASES IN THE SECOND HALF OF 1992 DESPITE COOLER WEATHER AND STIFF COMPETITIVE PRESSURES THE COMPANY SAID ADDING WE ARE STRONG IN OUR ABILITY TO SERVICE THE COMPANY'S DEBT WHILE CONTINUING AGGRESSIVE MARKETING EFFORTS FOR OUR BRANDS 9302220076 930222 BUSINESS BRIEF AIRTOURS PLC HOSTILE OFFER IS EXTENDED FOR OWNERS ABROAD GROUP AIRTOURS PLC EXTENDED ITS HOSTILE TAKEOVER BID FOR FELLOW BRITISH TOUR OPERATOR OWNERS ABROAD GROUP PLC UNTIL MARCH 4 THE EXTENSION WAS THE SECOND FOR AIRTOURS THE ORIGINAL DEADLINE EXPIRED FEB 4 AND THE MOST RECENT CLOSING DATE WAS THURSDAY AS OF THURSDAY AIRTOURS SAID IT CONTROLLED 06 OF OWNERS ABROAD'S ORDINARY SHARES AND 123 OF THE COMPANY'S CONVERTIBLE PREFERENCE SHARES AIRTOURS CAN EXTEND ITS OFFER AGAIN AND THE COMPANY CAN RAISE IT THE VALUE OF AIRTOURS' ALLSHARE OFFER WITH A PARTIAL CASH OPTION WAS VALUED AT ABOUT 237 MILLION 3427 MILLION WHEN LAUNCHED JAN 6 BUT HAS FALLEN ALONG WITH AIRTOURS' SHARE PRICE TO ABOUT 210 MILLION 9302220075 930222 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CHEMICAL BANKING CORP 200 MILLION ISSUE OF 7 1/8 SUBORDINATED NOTES DUE MARCH 1 2005 WAS PRICED AT 99928 TO YIELD 7134 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 97 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BDOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP DUKE POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE BONDS WILL BE REOFFERED AS 7 3/8 ISSUES AT 97124 TO YIELD 762 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993G13 IS BACKED BY 85 30YEAR GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GINNIE MAE SECURITIES FEDERAL HOME LOAN BANKS 160 MILLION NOTES DUE MARCH 1 1996 WAS PRICED AT PAR TO YIELD 451 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF EIGHT BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO KINGDOM OF SWEDEN SOVEREIGN 2 BILLION 6 1/2 SEMIANNUAL GLOBAL BONDS DUE MARCH 4 2003 AT FIXED REOFFER PRICE 99536 VIA MORGAN STANLEY AND SALOMON BROTHERS YIELD 656 AT REOFFER PRICE MARGIN 42 BASIS POINTS ABOVE REFERENCE 6 1/4 TREASURY DUE 2003 CREDIT LYONNAIS FRANCE 500 MILLION OF FLOATING RATE EURONOTES DUE MARCH 11 1996 VIA UBS PHILLIPS & DREW INTEREST PAID AT 1/8 POINT ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE REGENCY SQUARE FINANCE CORP SPECIAL PURPOSE COMPANY 575 MILLION ISSUE OF FLOATINGRATE EURONOTES DUE MARCH 1998 BACKED BY LEASES ON THE REGENCY SQUARE SHOPPING MALL IN JACKSONVILLE FLA VIA MERRILL LYNCH INTERNATIONAL INTEREST PAID AT 110 BASIS POINTS ABOVE QUARTERLY LONDON INTERBANK OFFERED RATE INITIAL OFFER PRICE 9975 PROPERTY BACKING VALUED AT 125 MILLION OR 217 TIMES BOND ISSUE CREDIT COMMERCIAL DE FRANCE FRANCE 100 MILLION OF 8 1/8 PARTPAID EUROBONDS DUE MARCH 17 2003 VIA MORGAN STANLEY INTERNATIONAL ISSUE PRICE 10160 REOFFER PRICE PAR INVESTORS ARE REQUIRED TO PAY 20 ON SETTLEMENT DATE MARCH 17 1993 AND REMAINING 80 ON MARCH 17 1994 FINNISH EXPORT CREDIT FINLAND 100 MILLION CANADIAN OF 7 3/4 EUROBONDS DUE OCT 7 1998 ISSUE PRICE 100375 REOFFER PRICE OF 9880 VIA HAMBROS BANK LTD CREDIT SUISSE FIRST BOSTON FINANCE BV US 150 MILLION SWISS FRANCS OF 5 1/4 PUBLIC BONDS DUE MAR 22 1999 PRICED AT 10200 VIA CREDIT SUISSE 9302220074 930222 INTERNATIONAL BRIEF PIRELLI SPA TIRE FIRM'S OPERATING PROFIT ADVANCED 31 IN THE YEAR ITALIAN TIRE AND CABLE MAKER PIRELLI SPA SAID CONSOLIDATED GROSS OPERATING PROFIT IN 1992 ROSE 31 TO 770 BILLION LIRE 4951 MILLION FROM 590 BILLION LIRE THE YEAR BEFORE A SPOKESWOMAN SAID HOWEVER THAT TAXES AND EXTRAORDINARY CHARGES CONNECTED WITH A RESTRUCTURING KEPT THE GROUP UNPROFITABLE LAST YEAR SHE DIDN'T GIVE A FIGURE FOR TOTAL LOSSES BUT SAID THEY WERE CONTAINED AND WERE LESS THAN THE 722 BILLION LIRA LOSS IN 1991 TOTAL LOSSES IN 1991 CONTAINED A 337 BILLION LIRA EXTRAORDINARY ITEM THAT STEMMED FROM PIRELLI'S FAILED TAKEOVER BID OF GERMAN TIRE GROUP CONTINENTAL AG PIRELLI SAID LOSSES FOR ORDINARY OPERATIONS WERE ALSO LESS THAN THE 152 BILLION LIRA LOSS IN 1991 BUT DIDN'T GIVE A FIGURE IN A STATEMENT ISSUED AFTER A BOARD MEETING PIRELLI SAID THAT ON AN ADJUSTED BASIS TAKING INTO ACCOUNT SALES OF SOME OF ITS DIVERSIFIED ACTIVITIES 1992 REVENUE WAS UP ABOUT 2 THE SPOKESWOMAN SAID ADJUSTED REVENUE FOR 1991 WAS ABOUT 81 TRILLION LIRE 9302220073 930222 ENTERPRISE BOWLES IS EXPECTED TO BE CHOICE FOR SBA BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NOMINATE ERSKINE BOWLES A NORTH CAROLINA INVESTMENT BANKER AND A FUNDRAISER FOR THE CLINTON PRESIDENTIAL CAMPAIGN TO HEAD THE SMALL BUSINESS ADMINISTRATION WITHIN THE NEXT TWO WEEKS THE APPOINTMENT WOULD END WEEKS OF INTENSE SPECULATION AMONG SMALLBUSINESS OWNERS AND THEIR ADVOCACY GROUPS WHICH HAVE SAID THE PERSON SELECTED WOULD INDICATE WHETHER PRESIDENT CLINTON WILL FOLLOW THROUGH ON PROMISES TO GIVE SMALLBUSINESS ISSUES A HIGHER PRIORITY IN PAST ADMINISTRATIONS THE AGENCY'S TOP JOB USUALLY HAS GONE TO RECENTLY DEFEATED MEMBERS OF CONGRESS MR BOWLES THE FOUNDER AND PRESIDENT OF BOWLES HOLLOWELL CONNER & CO OF CHARLOTTE NC AN INVESTMENT BANKING CONCERN SERVING SMALL AND MEDIUMSIZED COMPANIES WAS A FUNDRAISER FOR THE CLINTON CAMPAIGN IN NORTH CAROLINA AND OTHER PARTS OF THE SOUTH A WHITE HOUSE SOURCE SAID MR BOWLES IS THE PRIME CANDIDATE FOR THE JOB HE IS NOW UNDERGOING BACKGROUND CHECKS IN A TELEPHONE INTERVIEW MR BOWLES SAID HE HAS TALKED TO SEVERAL PEOPLE IN THE ADMINISTRATION ABOUT THE SBA JOB BUT NOT IN AN OFFICIAL CAPACITY AND HE STRESSED THAT HE HASN'T BEEN OFFERED THE POSITION I'M REAL GOOD AT TELLING THE TRUTH I'D RATHER NOT COMMENT ON THE PROCESS HE SAID THE PRESIDENT HAS CONSIDERED LOTS OF PEOPLE I DO KNOW HE PLANS TO GIVE THE POSITION A LOT MORE EMPHASIS IN THE FUTURE ALTHOUGH MR BOWLES AGE 47 IS VIRTUALLY A STRANGER TO THE CAPITAL'S SMALLBUSINESS LOBBY HE WOULD BRING TWO INTERESTING CREDENTIALS TO THE JOB HIS CAREER HAS FOCUSED ON WHAT IS CURRENTLY A HOT TOPIC THE FINANCIAL PROBLEMS OF MEDIUMSIZED COMPANIES AND HE IS CONSIDERED AN FOBH A FRIEND OF BILL AND HILLARY MR BOWLES SAID HE MET THE PRESIDENT JUST OVER A YEAR AGO THROUGH KEN BRODY A PARTNER AT MORGAN STANLEY & CO THE NEW YORK INVESTMENT BANKING FIRM WHERE HE BEGAN HIS CAREER ATTRACTED TO MR CLINTON'S IDEAS ON THE ECONOMY AND SMALL BUSINESS MR BOWLES DECIDED TO BECOME A FUNDRAISER HIS WIFE CRANDALL BOWLES WAS A CLASSMATE OF HILLARY RODHAM CLINTON'S AT WELLESLEY COLLEGE BUT WASN'T A PERSONAL FRIEND HE ADDED MRS BOWLES IS EXECUTIVE VICE PRESIDENT OF SPRINGS INDUSTRIES INC A LARGE TEXTILE COMPANY BASED IN FORT MILL SC HE SEEMS TO BE AN INCREDIBLY INTERESTING CANDIDATE SAID JOHN PAUL GALLES EXECUTIVE VICE PRESIDENT OF NATIONAL SMALL BUSINESS UNITED WHICH HAS THE SECONDLARGEST MEMBERSHIP AMONG THE THE NATION'S SMALLCOMPANY ORGANIZATIONS AND IF HE'S GOT SOLID CONNECTIONS WITH PRESIDENT CLINTON THAT SHOULD HELP SMALL BUSINESS AIR ITS CONCERNS AT THE WHITE HOUSE MR BOWLES ESTABLISHED HIS COMPANY TO WORK WITH SMALLER BUSINESSES BECAUSE HE FELT THEIR TRANSACTIONS WERE HANDLED POORLY AND ASSIGNED TO INEXPERIENCED PEOPLE AT NEW YORK'S MAJOR INVESTMENT BANKING CONCERNS HE TOOK A LEAVE OF ABSENCE FROM MORGAN STANLEY AND RETURNED TO HIS NATIVE NORTH CAROLINA IN 1972 TO HELP HIS FATHER HARGROVE SKIPPER BOWLES JR IN HIS UNSUCCESSFUL BID FOR GOVERNOR HE DECIDED TO ESTABLISH HIS OWN FIRM AND BEGAN LOOKING FOR PARTNERS WITH BACKGROUNDS IN LAW TAXATION AND FINANCE WHO COULD FOCUS ON SMALL AND MEDIUMSIZED CONCERNS THE COMPANY NOW HAS 55 EMPLOYEES AND HANDLES ABOUT 30 TRANSACTIONS A YEAR THERE HAS BEEN SOME SPECULATION THAT THE SBA COULD TAKE ON A NEW DIRECTION UNDER THE CLINTON ADMINISTRATION TO MATCH SOME OF HIS CAMPAIGN THEMES THE PRESIDENT HAS STRESSED THE IMPORTANCE OF ACCESS TO CAPITAL FOR GROWING COMPANIES THAT CREATE JOBS ENCOURAGING THOSE WHO WANT TO SEE MORE EMPHASIS ON AGGRESSIVE YOUNG CONCERNS BUT MR CLINTON ALSO HAS STRESSED THE IMPORTANCE OF COMMUNITYBASED DEVELOPMENT BANKS TO AID TINY STARTUP BUSINESSES MR BOWLES SAID THAT SO FAR HE KNOWS ONLY THAT THE PRESIDENT PLANS TO REVITALIZE SBA HE BELIEVES SMALL BUSINESS DESERVES A PLACE AT THE TABLE A NEW ADMINISTRATOR WILL INHERIT AN AGENCY THAT WAS NEARLY ELIMINATED BY THE REAGAN ADMINISTRATION AND WHICH HAS BEEN USED AS A DUMPING GROUND FOR POLITICAL APPOINTEES BY SEVERAL OTHER PRESIDENTS EMPLOYEE MORALE REMAINED LOW AS EACH OF A SERIES OF ADMINISTRATORS STAYED ON FOR RELATIVELY SHORT PERIODS THE AGENCY'S MAIN LOANGUARANTEE PROGRAM HOWEVER IS GROWING AT A RATE OF ABOUT 37 ANNUALLY BECAUSE BANKS ARE RELUCTANT TO MAKE LOANS TO SMALL COMPANIES WITHOUT THE ASSURANCE THAT THE FEDERAL GOVERNMENT WILL STAND BEHIND 75 TO 90 OF THE LOAN AMOUNT THE PROGRAM ALSO IS CONSIDERED A WELLMANAGED ONE BUT THE SBA HAS COME UNDER CONTINUED CRITICISM OVER THE PAST SEVERAL YEARS FOR ITS MANAGEMENT OF THE FEDERALLY LICENSED INVESTMENT COMPANIES THAT OPERATE AS VENTURE CAPITAL FIRMS AND FOR ITS GOVERNMENTCONTRACTING PROGRAM FOR MINORITYOWNED AND DISADVANTAGED BUSINESSES MR BOWLES IS A GRADUATE OF THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL AND EARNED HIS MASTER'S OF BUSINESS ADMINISTRATION AT COLUMBIA UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS THE PRESIDENT HAD CONSIDERED A LONG LIST OF CANDIDATES TO HEAD THE AGENCY INCLUDING SEVERAL WOMEN BLACKS HISPANICS AND WHITE MEN THE MOST PROMINENT CANDIDATES INCLUDED FORMER REP PARREN MITCHELL OF MARYLAND A FORMER CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE AND BARBARA BLUM PRESIDENT OF ADAMS NATIONAL BANK IN WASHINGTON DC THE NOMINATION REQUIRES CONFIRMATION BY THE SENATE 9302220072 930222 BUSINESS BRIEF MONTCLAIR BANCORP INC HOLDERS APPROVE PURCHASE OF COMPANY BY COLLECTIVE MONTCLAIR BANCORP INC SAID SHAREHOLDERS HAVE APPROVED ITS ACQUISITION BY COLLECTIVE BANCORP FOR 2415 A SHARE OR 58 MILLION THE SPECIAL SHAREHOLDERS' MEETING WAS RECONVENED LAST THURSDAY AFTER ADJOURNING FEB 4 WHEN MONTCLAIR SAID IT NEEDED MORE TIME TO CORRECT ITS PROXY STATEMENT FOR CERTAIN ERRORS IN ITS HISTORICAL STOCK PRICE ALSO SOME SHAREHOLDERS AT THE FEB 4 MEETING PROTESTED THE SALE PRICE SAYING IT WAS ONLY ABOUT 88 OF THE MONTCLAIR NJ BANK HOLDING COMPANY'S BOOK VALUE A SPOKESWOMAN FOR THE COMPANY DECLINED TO COMMENT ON THOSE SHAREHOLDER COMPLAINTS SHE SAID BOOK VALUE FOR MONTCLAIR AT OCT 31 1992 WAS 2746 A SHARE MONTCLAIR HAS ABOUT 24 MILLION SHARES OUTSTANDING MONTCLAIR SAID HOLDERS OF 77 OF SHARES OUTSTANDING VOTED FOR THE MERGER A SIMPLE MAJORITY APPROVAL WAS NEEDED THE SPOKESWOMAN SAID UNDER THE DEAL'S TERMS COLLECTIVE AN EGG HARBOR NJ BANKING COMPANY WILL PAY 2415 FOR EACH MONTCLAIR SHARE THE PRICE WILL INCREASE BY FIVE CENTS A SHARE ON MARCH 2 APRIL 2 AND MAY 2 IF THE DEAL ISN'T COMPLETED BY MARCH 1 APRIL 1 OR MAY 1 THE COMPANY SAID MONTCLAIR BANCORP SHARES CLOSED FRIDAY AT 23625 UP 125 CENTS A SHARE IN NATIONAL OVERTHECOUNTER TRADING 9302220071 930222 REGULATORY CHOKEHOLD THE WORST KIND OF SHORTTERM THINKING BY ALLAN H MELTZER THE CLINTON ADMINISTRATION HIT THE GROUND BACKPEDALING INSTEAD OF TAX REDUCTION FOR THE MIDDLE CLASS WE WILL SEE TAX INCREASES INSTEAD OF CUTTING THE DEFICIT IN HALF BY 1997 WE WILL SEE VERY LITTLE REDUCTION IN THE BUDGET DEFICIT WHEN WE GET TO 1997 INSTEAD OF 2 OF SPENDING REDUCTION FOR EVERY DOLLAR OF TAX INCREASE THERE WILL BE 4 IN TAX INCREASE FOR EACH DOLLAR OF REDUCTION IN SPENDING GROWTH IF CONGRESS ADOPTS THE PRESIDENT'S PROGRAM PART OF THE SOCALLED SPENDING REDUCTION COMES FROM HIGHER TAXES ON SOCIAL SECURITY CHECKS AND MEDICARE FEES PAID BY CONSUMERS THE GOVERNMENT WILL SPEND LESS ON MEDICARE BY MAKING THE PUBLIC PAY MORE GOVERNMENT SPENDING WILL CONTINUE TO RISE AS IT HAS EVERY YEAR SINCE 1965 THE PROJECTED INCREASE IS 300 BILLION IN FIVE YEARS OUR FISCAL HISTORY FOR THE PAST 30 YEARS CAN BE WRITTEN IN THREE SENTENCES 1 THE SHARE OF TOTAL EARNED INCOME TAXED BY THE FEDERAL GOVERNMENT HAS REMAINED BETWEEN 18 AND 20 IN 1992 IT WAS 186 2 THE SHARE OF FEDERAL GOVERNMENT SPENDING TO TOTAL SPENDING HAS INCREASED FROM ABOUT 17 OR 18 TO ABOUT 23 OR 24 3 THE DEFICIT HAS INCREASED WITH SPENDING THE CLINTON ADMINISTRATION HARANGUES ABOUT THE DEFICIT TO GET MORE REVENUE IF THE ADMINISTRATION WERE SERIOUS ABOUT REDUCING SPENDING IT WOULD ELIMINATE THE 30 BILLION SPACE STATION REDUCE ENTITLEMENTS AND CUT WASTEFUL PROJECTS INSTEAD OF REDUCING SPENDING THE ADMINISTRATION PLANS TO SPEND MORE THAN 30 BILLION TO CREATE SHORTTERM JOBS AT A TIME WHEN SIGNS SHOW THE ECONOMY DOES NOT NEED ADDITIONAL STIMULUS FURTHER THE CLINTON PROGRAM IS NOT A GOOD USE OF TAX DOLLARS HALF THE PROGRAM 15 BILLION OVER TWO YEARS GOES FOR A TEMPORARY INVESTMENT TAX CREDIT BUT CORPORATIONS WILL PAY AN ADDITIONAL 6 BILLION A YEAR IN PERMANENT TAXES THE HIGHER TAXES WILL FALL HEAVILY ON CORPORATE SAVING AND INVESTMENT AND ENERGY TAXES RAISE COSTS AND REDUCE OUTPUT JUST AS THEY DID WHEN OPEC HIT US THIS IS PUZZLING POLICY WHAT IS THE POINT OF A TEMPORARY KICK TO AN ECONOMY THAT IS DOING MODERATELY WELL IF IT IS PAID FOR BY A TAX INCREASE THAT DISCOURAGES LONGTERM INVESTMENT THE ANSWER TO THE PUZZLE IS THIS THE TEMPORARY TAX CREDIT WILL HAVE A BIG EFFECT JUST BEFORE THE END OF 1994 JUST BEFORE THE NEXT CONGRESSIONAL ELECTIONS WHEN THE CREDIT IS ABOUT TO EXPIRE IT PAYS BUSINESSES TO SHIFT PURCHASES OF EQUIPMENT FROM 1995 TO 1994 THE POLICY PENALIZES THE FUTURE BECAUSE THE TAX ON CORPORATE INCOME WILL REMAIN LONG AFTER THE TEMPORARY CREDIT EXPIRES BUT IT MAY SERVE A POLITICAL PURPOSE CORPORATE AND INDIVIDUAL TAX RATES ARE LIKELY TO RISE EVEN MORE IN THE FUTURE THE HEALTH CARE PLAN NOW IN PREPARATION WILL BE COSTLY DURING THE CAMPAIGN MR CLINTON ENCOURAGED THE BELIEF THAT THE PUBLIC WAS GOING TO SAVE MONEY ON HEALTH CARE MOST OF US WILL PAY MORE EITHER IN TAXES OR IN PREMIUMS FOR INSURANCE OR BOTH TAXES ON CIGARETTES AND ALCOHOL ARE OFTEN MENTIONED AS ONE OF THE WAYS TO PAY FOR AN EXPANDED HEALTH CARE PROGRAM THESE TAXES AGAIN WILL BACKPEDAL ON CANDIDATE CLINTON'S PLEDGE TO LOWER TAXES ON THE MIDDLE CLASS AND RAISING TAXES WILL NOT SOLVE THE BUDGET PROBLEM WHAT MATTERS MOST ABOUT SPENDING IS HOW WE AS A NATION USE RESOURCES IF THE DEFICITS OF THE 1980S AND 1990S HAD PAID FOR PRODUCTIVE INVESTMENT IN EDUCATION AND PHYSICAL CAPITAL WE WOULD BE MORE PRODUCTIVE AND RICHER WE COULD REDUCE THE DEFICIT FROM OUR INCREASED EARNINGS JUST AS BUSINESSES DO WHEN THEY BORROW PUBLIC POLICY HAS DISCOURAGED INVESTMENT IN SEVERAL WAYS INFLATION HAS TAXED INVESTED CAPITAL PARTICULARLY LONGLIVED CAPITAL THE 1986 TAX ACT SHIFTED TAXES FROM CONSUMERS TO OWNERS OF CAPITAL EARNED INCOME INCLUDING SAVINGS WILL BE TAXED AT HIGHER RATES UNDER THE CLINTON PLAN TAXING SAVING IS NOT A WAY TO ENCOURAGE GROWTH AND RAISE LIVING STANDARDS TAXES SHOULD BE SHIFTED FROM EARNED INCOME TO CONSUMED INCOME TO SPUR SAVING ALLOW TAXPAYERS TO SUBTRACT THEIR ANNUAL SAVINGS FROM THEIR TAXABLE INCOME AND LEVY THE TAX ON THE REMAINDER SPENDING OR CONSUMED INCOME CORPORATIONS SHOULD BE ALLOWED TO WRITE OFF THEIR PURCHASES OF MACHINERY AND EQUIPMENT THIS WOULD INCREASE PRODUCTIVE INVESTMENT AND PRODUCTIVITY THERE SHOULD BE A LIMIT ON THE GOVERNMENT'S SHARE OF TOTAL SPENDING GIVE GOVERNMENT AN INCENTIVE TO ENCOURAGE ECONOMIC GROWTH WE SHOULD ENCOURAGE TOO GENERAL RESEARCH AND DEVELOPMENT AND IMPROVEMENTS IN EDUCATION AND TRAINING BY PROMOTING COMPETITION IN SCHOOLS AND INCREASING INCENTIVES FOR LEARNING INSTEAD THE PRESIDENT'S PROGRAM SPENDS MONEY ON COSTLY GOVERNMENT TRAINING PROGRAMS AND MAKEWORK SUMMER JOBS FOR TEENAGERS IN MANY COUNTRIES SCHOOL GRADES ARE IMPORTANT FOR GETTING A FIRST JOB IN THE US OUR LAWS CAN TREAT SUCH INFORMATION AS EVIDENCE OF DISCRIMINATION MY LATE FRIEND PROF HARRY JOHNSON OFTEN SAID THAT WHEN A GOVERNMENT WANTED TO DO SOMETHING THAT MADE LITTLE SENSE IT EITHER DESCRIBED ITS PROGRAM AS A WAR OR ASKED FOR SACRIFICE THAT'S WHAT THE PRESIDENT HAS NOW DONE A FEW GOOD IDEAS ARE BURIED IN A BAD PROGRAM THERE'S NOT A WORD ABOUT DEREGULATION TO LOWER PRIVATESECTOR COSTS WE ARE HEADED FOR MORE BURDENSOME REGULATION THERE'S TOO MUCH TAXATION TOO FEW SPENDING CUTS TOO LITTLE GROWTH TOO MUCH GOVERNMENT WHAT'S THE BIG CHANGE LET'S URGE THE PRESIDENT TO BACKPEDAL AGAIN MR MELTZER IS PROFESSOR OF ECONOMICS AT CARNEGIEMELLON AND VISITING SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE 9302220070 930222 RETAILING MALL CRIME MAY DETER INVESTORS RETAILERS BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL FEAR OF RISING CRIME IS MAKING SOME SHOPPING MALLS LESS ATTRACTIVE TO BOTH INVESTORS AND RETAIL TENANTS QUANTIFYING THE IMPACT OF CRIME ON REALESTATE INVESTMENT VALUES IS DIFFICULT BECAUSE SHOPPINGMALL RENTS AND PROFITS HINGE ON SO MANY VARIABLES INCLUDING LOCAL RETAIL COMPETITION CHANGING DEMOGRAPHICS AND THE GENERAL ECONOMY BUT SOME OBSERVERS SAY MALL CRIME HAS BECOME SUCH A VOLATILE ISSUE THAT IT IS INFLUENCING THE GROWTH STRATEGIES OF LEADING SHOPPINGCENTER TENANTS THEREBY DEPRESSING RENT LEVELS AND PROPERTY VALUES IN SOME AREAS SEVERAL RETAIL CLIENTS HAVE TOLD ME THEY INTEND TO AVOID CERTAIN MALLS BECAUSE OF THEIR REPUTATIONS FOR CRIME SAYS JIM SELONICK A RETAIL REALESTATE CONSULTANT BASED IN CINCINNATI THERE'S NO QUESTION HE ADDS THAT CRIME HAS CAUSED SOME DEPRECIATION IN THOSE MALLS' VALUE WESTWOOD VILLAGE IN LOS ANGELES EXEMPLIFIES A SHOPPING AREA WHERE CRIME HAS EXACERBATED EXISTING ECONOMIC PROBLEMS AFTER THE 1987 MURDER OF A YOUNG WOMAN IN THE TRENDY 250STORE COMPLEX BUSINESS FELL OFF SHARPLY MATTERS DIDN'T IMPROVE WHEN TWO COMPETING SHOPPING CENTERS NEARBY WERE UPGRADED WITH NEW THEATERS AND RESTAURANTS ACCORDING TO JOANNE WILLIAMS A RETAIL LEASING SPECIALIST WITH GRUBB & ELLIS COMMERCIAL BROKERAGE IN LOS ANGELES MONTHLY RENTS FOR RETAIL SPACE ON WESTWOOD VILLAGE'S MOST DESIRABLE STREET HAVE FALLEN TO 250 A SQUARE FOOT FROM 6 BEFORE THE MURDER ONE OF THE BIGGEST PROBLEMS WESTWOOD VILLAGE HAS HAD HAS BEEN CRIME MS WILLIAMS SAYS BUT THE WESTWOOD VILLAGE ASSOCIATION A BUSINESS ORGANIZATION RESPONDS THAT THE AREA SUFFERS LITTLE ACTUAL CRIME RENTS WOULD BE HIGHER THE GROUP MAINTAINS IF THE ECONOMY WERE BETTER NONETHELESS BIG RETAILERS NATIONWIDE CONFIRM THAT CRIME IS PLAYING A ROLE IN THE SELECTION OF NEW STORE SITES AT THE NATION'S 38000 SHOPPING CENTERS THE IMPETUS OFTEN COMES FROM EMPLOYEES WHO FEAR STORE ROBBERIES OR PARKINGLOT MUGGINGS AT CHARMING SHOPPES INC A LARGE SPECIALTY RETAIL CHAIN THERE IS AN ONGOING DEBATE BETWEEN PEOPLE IN OPERATIONS WHO WORRY ABOUT EMPLOYEE SAFETY AND REALESTATE EXECUTIVES HUNGRY FOR LOCATIONS WHERE THE COMPANY CAN MAKE MONEY SAYS BERNARD BRODSKY VICE PRESIDENT AND TREASURER THE BENSALEM PA CHAIN CATERS TO LOWERMIDDLECLASS SHOPPERS WITH MORE THAN 1200 FASHION BUG AND FASHION BUG PLUS STORES LOCATED MOSTLY IN STRIP SHOPPING CENTERS CHARMING SHOPPES OPERATES STORES IN CHICAGO PHILADELPHIA BALTIMORE CLEVELAND AND DETROIT AND INTENDS TO STAY IN URBAN AREAS THAT MIGHT DISCOURAGE OTHERS THERE AREN'T TOO MANY SPECIALTY CHAINS THAT WOULD CONSIDER A STRIP CENTER IN A CITY NEIGHBORHOOD MR BRODSKY SAYS BUT IF YOU CAN FIND A VIABLE NEIGHBORHOOD YOU CAN STILL DO BUSINESS THERE ARE HOWEVER LIMITS WE'VE LEARNED WHERE WE SHOULDN'T OPEN MORE STORES BECAUSE OF THE HUMAN ELEMENT HE SAYS FOR MELVILLE CORP IN RYE NY CRIME IS DEFINITELY A FACTOR IN CHOOSING STORE LOCATIONS SAYS ROBERT HUTH CHIEF FINANCIAL OFFICER MELVILLE OPERATES MORE THAN 8000 STORES UNDER SUCH NAMES AS MARSHALLS AN OFFPRICE SPECIALTY CHAIN THOM MCAN SHOES AND KAYBEE TOYS IN URBAN MALLS WHERE TRAFFIC IS STILL BRISK AND THE POTENTIAL FOR PROFIT GOOD MR HUTH SAYS YOU LOOK FOR THE LANDLORD TO INCREASE SECURITY BUT IF THE MALL HAS TO DO TOO MUCH IN THAT AREA MAYBE YOU DON'T TAKE A STORE OTHER RETAILERS NOTABLY RH MACY & CO LIMITED INC AND SHARPER IMAGE CORP DENY THAT CRIME INFLUENCES THEIR REALESTATE DECISIONS MORE CRITICAL THEY SAY ARE SUCH FACTORS AS LOCAL TRANSPORTATION HOUSEHOLD INCOME AND EMPLOYMENT LEVELS YET IN FACT THE CRITERIA THAT BOTH MALL TENANTS AND INVESTORS USE TO EVALUATE POTENTIAL PROPERTIES TEND TO RULE OUT MARGINAL CRIMERIDDEN LOCATIONS ONE OF THE NATION'S LARGEST MALL INVESTORS PRUDENTIAL INSURANCE CO OF AMERICA EVEN GOES SO FAR AS TO CHECK LOCAL COLLEGE BOARD SCORES AMONG OTHER THINGS BEFORE DECIDING WHERE TO INVEST THE POTENTIAL FOR CRIME FOR CIVIL AND SOCIAL UNREST IS SOMETHING WE LOOK AT SAYS JOEL STOESSER MANAGING DIRECTOR OF PRUDENTIAL REALTY GROUP'S INSTITUTIONAL INVESTMENT MANAGEMENT UNIT BUT HE INSISTS PRUDENTIAL HAS NEVER REJECTED AN INVESTMENT OPPORTUNITY SOLELY BECAUSE OF CRIME CONCERNS YOU EXAMINE ALL OF THE FACTORS THAT INFLUENCE THE ECONOMIC LIFE OF A REGION HE SAYS THE ADVENT OF MALL CRIME IS A TROUBLING DEVELOPMENT FOR AN INDUSTRY THAT GREW IN TANDEM WITH THE MIDDLECLASS FLIGHT FROM CRIMERIDDEN CITIES AND DOWNTOWN FLAGSHIP STORES AS THE SUBURBS BLOSSOMED IN THE 1950S AND 1960S MALLS WERE HERALDED AS BRIGHT BECKONING HAVENS OF AMUSEMENT AND ASPIRATION WHERE PARENTS COULD SAFELY PARK THE KIDS FOR A COUPLE OF HOURS NOW THAT THIS SERENITY CAN NO LONGER BE ASSURED MALL OWNERS HAVE BEEN FORCED TO STEP UP INVESTMENTS IN PARKINGLOT LIGHTING PATROL VEHICLES AND UNIFORMED GUARDS THE TREND IS EXPECTED TO ACCELERATE MALLS WON'T WANT TO BE BLACKLISTED BY SHOPPERS SAYS RICHARD ECHIKSON CHAIRMAN OF RETAIL CONSULTANTS INC IN MILLBURN NJ THIS MEANS SECURITY WILL MOVE FROM NO 10 ON THE PRIORITY LIST TO NO 5 A PRIME EXAMPLE IS THE GREEN ACRES MALL IN VALLEY STREAM NY A MULTITIERED COMPLEX WITH 250 TENANTS AND FOUR DEPARTMENT STORES THAT SPRAWLS ACROSS 100 ACRES OF SUBURBAN LONG ISLAND SHOPPERS' FEAR OF CRIME HAS PROMPTED THE MALL TO BEEF UP SECURITY HIRING GUARDS WHO WEAR STATE TROOPERSTYLE HATS THOUGH TENANTS REPORT ENHANCED PEACE OF MIND THE MALL STILL LABORS TO DISPEL FEARS EVEN A SECURITY GUARD CONFIDES THAT THE MALL'S REPUTATION FOR CRIME MADE HIM THINK TWICE BEFORE ACCEPTING HIS JOB WE'VE BEEN HURT BY THE PERCEPTION OF CRIME SINCE DAY ONE SAYS MYLES TANENBAUM CHIEF EXECUTIVE OF EQK GREEN ACRES LP A HOLDING COMPANY WHOSE STOCK HAS BEEN TRADED ON THE NEW YORK STOCK EXCHANGE SINCE 1986 MR TANENBAUM THE COMPANY'S LARGEST SHAREHOLDER IS CONVINCED ITS SHARES WOULD BE WORTH MORE IF IT WEREN'T FOR CRIME CONCERNS NONETHELESS THE MALL AVERAGES AN IMPRESSIVE 400 PER SQUARE FEET IN SALES VERSUS A NATIONAL AVERAGE OF 175 TO 250 MR TANENBAUM BELIEVES REVENUE WOULD BE EVEN HIGHER IF SHOPPERS WEREN'T WORRIED ABOUT CARJACKINGS AND MUGGINGS THE COST OF FIGHTING MALL CRIME IS MOSTLY SHOULDERED BY RETAIL TENANTS MERRYGOROUND ENTERPRISES INC A RETAIL CHAIN BASED IN JOPPA MD PRIDES ITSELF ON ITS WILLINGNESS TO GO INTO AREAS SHUNNED BY MORE CONSERVATIVE COMPETITORS BUT JEFF MASON A LEASING EXECUTIVE WITH THE CHAIN FRETS ABOUT THE STEADY INCREASE IN SECURITYRELATED OPERATING COSTS SUCH EXPENSES ARE FACTORED INTO WHAT DEVELOPERS CALL COMMON AREA MAINTENANCE CHARGES THE FEES TENANTS ARE ASSESSED FOR GENERAL MALL UPKEEP TODAY MR MASON SAYS THE AVERAGE CHARGE IN METROPOLITAN SHOPPING MALLS HAS RISEN TO ABOUT 750 A SQUARE FOOT FROM ONLY 450 FIVE YEARS AGO MUCH OF THE INCREASE HE SAYS GOES FOR SECURITY EVERY TIME THOSE CHARGES GO UP IT AFFECTS OUR BOTTOM LINE 9302220069 930222 BUSINESS BRIEF CHRYSLER CORP VENTURE IN CHINA WILL BOOST LOCAL SOURCING PAPER SAYS BY THE END OF 1994 CHRYSLER CORP WILL ATTEMPT TO LOCALLY SOURCE AS MUCH AS 80 OF THE PARTS USED IN THE JEEPS IT PRODUCES UNDER A JOINTVENTURE ARRANGEMENT IN CHINA A REPORT IN HONG KONG SAID ACCORDING TO THE ENGLISHLANGUAGE CHINA DAILY THE US AUTO MAKER'S JOINT VENTURE MANUFACTURED OR OTHERWISE OBTAINED IN CHINA 60 OF THE PARTS FOR ITS VEHICLES IN 1992 THAT WAS AN INCREASE FROM 44 IN 1991 ACCORDING TO NUMBERS PROVIDED BY LI YUANZHU VICE PRESIDENT OF BEIJING JEEP CORP MR LI SPOKE AT A CONFERENCE IN BEIJING THE REPORT SAID ESTABLISHED IN 1985 BEIJING JEEP IS THE LARGEST OF CHRYSLER'S JOINT VENTURES IN CHINA ACCORDING TO CHINA DAILY BEIJING JEEP PRODUCED 56000 CHEROKEE AND BJ212 JEEPS IN 1992 UP 17 FROM 1991 SALES SURGED 45 9302220068 930222 BUSINESS BRIEF YELLOW FREIGHT SYSTEM INC ACQUISITION OF PRESTON CORP IS COMPLETE REFINANCING SET YELLOW FREIGHT SYSTEM INC OF DELAWARE SAID IT COMPLETED ITS OFFER TO ACQUIRE PRESTON CORP YELLOW FREIGHT PAID 217 MILLION FOR ABOUT 91 OF PRESTON AND WILL BE PURCHASING THE REMAINING SHARES AT 4125 A SHARE AS PART OF THE OFFER YELLOW FREIGHT AN OVERLAND PARK KAN MAJOR LONGHAUL TRUCKER WILL REFINANCE ABOUT 85 MILLION OF PRESTON'S DEBT AND REPLACE CERTAIN LETTERS OF CREDIT OF ABOUT 31 MILLION PRESTON OF PRESTON MD OWNS VARIOUS TRANSPORTATION COMPANIES THE FORMER CHAIRMAN OF PRESTON CORP WILLIAM POTTER AND THE FORMER PRESIDENT OF PRESTON TRUCKING CO WILLIAM TERRELL RESIGNED UPON COMPLETION OF THE ACQUISITION GEORGE E POWELL III PRESIDENT AND CHIEF EXECUTIVE OF YELLOW FREIGHT WAS NAMED CHAIRMAN OF PRESTON CORP WHILE LEO SUGGS WAS NAMED PRESIDENT OF PRESTON CORP AND PRESTON TRUCKING MR SUGGS WAS SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT FOR YELLOW FREIGHT 9302220067 930222 RTC WASTED MILLIONS IN PACT OFFICIAL CHARGES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SALESDRIVEN FOCUS OF THE RESOLUTION TRUST CORP'S TOP MANAGEMENT CAUSED THEM TO IGNORE CONTRACTING POLICIES PROCEDURES INTERNAL CONTROLS AND OVERALL COSTS AND MILLIONS HAVE BEEN WASTED AS A RESULT THE AGENCY'S INSPECTOR GENERAL SAID IN PARTICULAR INSPECTOR GENERAL JOHN ADAIR BLAMED THE RTC'S PROBLEMS OVER ITS CONTROVERSIAL HOMEFED BANK CONTRACT WITH PRICE WATERHOUSE ON A DEADLINEDRIVEN ATMOSPHERE IN THE AGENCY'S UPPER ECHELONS RTC CHIEF EXECUTIVE OFFICER ALBERT CASEY APPEARING WITH MR ADAIR AT A SENATE HEARING ON THE HOMEFED CONTRACT STRONGLY DISPUTED THIS CHARGE MR CASEY WHO ANNOUNCED HIS RESIGNATION LAST WEEK ACKNOWLEDGED THAT MISTAKES WERE MADE BUT INSISTED THEY WERE HONEST MISTAKES AND WERE NOT RELATED TO ANY DEADLINE HE ACCUSED THE INSPECTOR GENERAL'S OFFICE OF SENSATIONALISM MR ADAIR HAS SAID THE RTC PAID PRICE WATERHOUSE ABOUT 67 CENTS A PAGE FOR LABOR IN PHOTOCOPYING MILLIONS OF HOMEFED DOCUMENTS PRICE WATERHOUSE HAS DENIED ANY OF ITS CHARGES WERE EXCESSIVE SEN JOSEPH LIEBERMAN D CONN CHAIRMAN OF THE SENATE GOVERNMENTAL AFFAIRS SUBCOMMITTEE THAT HELD THE HEARING SAID THAT IT'S HARD TO SEE HOW THE PRICE WATERHOUSE CONTRACT WAS THE RESULT OF ANYTHING LESS THAN GROSS NEGLIGENCE AND MISMANAGEMENT ON THE PART OF RTC SENIOR MANAGEMENT MR ADAIR SAID SOME PRICE WATERHOUSE COSTS WERE MARKED UP MORE THAN 340 WHEN PASSED ON TO THE RTC HE PLACED THE BLAME SQUARELY ON THE RTC'S SENIOR MANAGEMENT WHO HE SAID SET A DEADLINE FOR DEALING WITH HOMEFED WITHOUT PROPER PLANNING THE RTC INSPECTOR GENERAL SAID HE NOTIFIED MR CASEY OF HIS CONCERNS ABOUT THE HOMEFED CONTRACT ON OCT 19 1992 AND PROVIDED AT LEAST 10 WRITTEN UPDATES AFTERWARD HE SAID THE RTC DIDN'T BEGIN RENEGOTIATING THE CONTRACT WITH PRICE WATERHOUSE UNTIL EARLIER THIS MONTH AS REPORTED THE ACCOUNTING FIRM AND RTC ANNOUNCED A SUBSTANTIAL FEE REDUCTION ON THE HOMEFED CONTRACT HOMEFED A 12 BILLION INSOLVENT SAN DIEGO THRIFT IS THE LARGEST THRIFT EVER TAKEN OVER BY THE RTC MR CASEY TOLD THE SENATE PANEL THAT CLEARLY SOME MISTAKES WERE MADE WITH RESPECT TO THE HOMEFED CONTRACT BUT INSISTED IT WAS NOT A CONTRACT RUN AMOK HE WENT ON TO ATTACK AS TOTALLY UNPROFESSIONAL WHAT HE CALLED THE SENSATIONALISM OF THE INSPECTOR GENERAL'S OFFICE HE DEPICTED THE 67CENTSAPAGE COPYING FIGURE AS MISLEADING PRICE WATERHOUSE HAS DISPUTED THIS FIGURE AND HAS INSISTED THAT ITS CONDUCT WITH REGARD TO THE HOMEFED CONTRACT HAS BEEN TOTALLY ABOVE REPROACH 9302220066 930222 INTERNATIONAL ITALIAN CABINET IS RESHUFFLED AMID SCANDAL PRIVATIZATION AND REFORMS HAD BEEN THREATENED AFTER 2 MINISTERS QUIT BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ITALIAN PRIME MINISTER GIULIANO AMATO TRYING TO SHORE UP A FEEBLE GOVERNMENT DISCREDITED BY A WIDENING CORRUPTION SCANDAL PLUGGED TWO NEWLY EMPTY CABINET SPOTS YESTERDAY AND SHUFFLED SOME MINISTERIAL DUTIES HEALTH MINISTER FRANCESCO DE LORENZO AND FINANCE MINISTER GIOVANNI GORIA RESIGNED FRIDAY FOLLOWING ACCUSATIONS OF DUBIOUS CONDUCT ONLY A WEEK AFTER THE JUSTICE MINISTER QUIT THE RESIGNATIONS OF MESSRS DE LORENZO AND GORIA THREATENED TO FORCE MR AMATO TO STEP DOWN JEOPARDIZING MR AMATO'S PRIVATIZATION PLANS BUDGET REDUCTION AND OTHER REFORMS NOW UNDER WAY THE ALREADY WEAK LIRA SWOONED ON THE NEWS MR DE LORENZO RESIGNED AFTER A PARLIAMENTARY COMMITTEE VOTED TO LIFT HIS IMMUNITY TO PROSECUTION FOR CHARGES OF EXCHANGING VOTES FOR JOBS IN LAST APRIL'S PARLIAMENTARY ELECTIONS HE DENIED THE CHARGES MR GORIA'S EXIT FOLLOWED RUMORS THAT HE IS THE TARGET OF A PROBE INTO THE ALLEGED FALSIFICATION OF BALANCE SHEETS AT A SAVINGS BANK IN HIS HOME TOWN OF ASTI WHILE HE WAS ON THE BOARD OF AUDITORS THERE IN 1976 RUMORS ALSO FOCUS ON MR GORIA'S ALLEGED INVOLVEMENT IN IRREGULARITIES INVOLVING THE CONSTRUCTION OF A HOSPITAL IN ASTI MR GORIA WHO WAS ITALY'S PRIME MINISTER FOR EIGHT MONTHS IN 19871988 SAID HE STEPPED DOWN BECAUSE HE COULDN'T TOLERATE BEING SUBJECTED TO ACCUSATIONS WHICH ARE UNJUST WITH THE RESHUFFLING MR AMATO TEMPORARILY AVOIDS HAVING TO LURE NEW PARTIES INTO HIS WOBBLY FOURPARTY COALITION MR AMATO'S SOCIALIST PARTY IS THE FOCUS OF AN INQUIRY INTO BRIBERY AND PUBLIC WORKS CONTRACTS IN MILAN THE EXPANDING SCANDAL NOW BRANCHING INTO OTHER REGIONS AND ACCUSATIONS RECENTLY FORCED FORMER PRIME MINISTER BETTINO CRAXI TO RESIGN AS PARTY HEAD MR AMATO NAMED FRANCO REVIGLIO CURRENTLY BUDGET MINISTER TO SUCCEED MR GORIA AS FINANCE MINISTER THE NEW BUDGET MINISTER IS BENIAMINO ANDREATTA WHO HELD THE SAME OFFICE IN 1979 AND WAS TREASURY MINISTER FROM 19801982 THE NEW HEALTH MINISTER IS RAFFAELE COSTA WHO MOVES FROM HIS POST AS MINISTER FOR REGIONAL AFFAIRS MR AMATO ALSO CREATED A NEW MINISTRY FOR PRIVATIZATION REMOVING THIS RESPONSIBILITY FROM INDUSTRY MINISTER GIUSEPPE GUARINO'S PORTFOLIO MR GUARINO HAS BEEN CRITICAL OF THE PRIVATIZATION PLANS AND PRESENTED HIS OWN ALTERNATIVE PLAN FOR STATE ASSET SALES FRIDAY PAOLO BARATTA THE LONGTIME HEAD OF GOVERNMENT CREDIT INSTITUTION CREDIOP WAS NOMINATED AS THE NEW PRIVATIZATIONS AND EMPLOYMENT MINISTER OVER THE WEEKEND THE CORRUPTION PROBE CONTINUED ENZO CARRA FORMER PRESS SECRETARY FOR FORMER CHRISTIAN DEMOCRAT SECRETARY ARNALDO FORLANI WAS ARRESTED IN MILAN CHARGED WITH PROVIDING FALSE TESTIMONY DURING AN INQUIRY INTO AN ALLEGED BRIBE PAID TO THE CHRISTIAN DEMOCRATIC PARTY BY ENIMONT THE SHORTLIVED CHEMICALS JOINT VENTURE BETWEEN STATE PETROCHEMICAL CONCERN ENI AND MONTEDISON SPA ANTONIO CARIGLIA PRESIDENT OF THE SMALL SOCIAL DEMOCRATIC PARTY WAS SERVED WITH NOTICE HE IS UNDER INVESTIGATION FOR ALLEGEDLY DEMANDING KICKBACKS ON CONSTRUCTION OF A PORT IN FOGGIA 9302220065 930222 BUSINESS BRIEF PHILLIPS PETROLEUM CO SETTLEMENT OF 502 MILLION IS PAID FOR TAX LIABILITIES PHILLIPS PETROLEUM CO BARTLESVILLE OKLA SAID IT PAID 502 MILLION TO THE STATE OF ALASKA IN A SETTLEMENT OF CERTAIN TAX LIABILITIES THE OIL COMPANY SAID THE FUNDS IT USED FOR THE PAYMENT WERE PREVIOUSLY ACCRUED AND WON'T RESULT IN A CHARGE AGAINST EARNINGS PHILLIPS SAID THE PAYMENT WHICH WAS MADE FEB 12 COVERS TAX AND INTEREST TO SETTLE CERTAIN PRODUCTION LIABILITIES FOR THE YEARS 1976 TO 1985 AND INCOME TAX LIABILITIES FOR THE YEARS 1978 TO 1981 THE COMPANY ADDED THAT THE SETTLEMENT DOESN'T AFFECT PENDING LITIGATION IN US TAX COURT INVOLVING ITS ALASKA LIQUEFIED NATURAL GAS OPERATIONS 9302220064 930222 BUSINESS BRIEF ALLIANT COMPUTER SYSTEMS CORP SHAREHOLDERS NOT EXPECTED TO SEE PROCEEDS FROM SALES ALLIANT COMPUTER SYSTEMS CORP SAID IT DOESN'T EXPECT SHAREHOLDERS TO RECEIVE ANY PROCEEDS AFTER IT SELLS OFF ALL ITS ASSETS ALLIANT SAID IT COMPLETED THE SALE OF THE EQUITY IN ITS EUROPEAN SUBSIDIARIES TO FPS EUROPE BV AND THE SALE OF ITS NORTH AMERICAN SERVICE BUSINESS TO GS COMPUTER SERVICES INC FOR 5 MILLION IT SAID 18 MILLION OF THAT AMOUNT IS BEING HELD IN ESCROW FOR A CONTINGENT EUROPEAN TAX LIABILITY THE LITTLETON MASS COMPUTER MANUFACTURER WHICH IS IN THE PROCESS OF SELLING ALL ITS ASSETS UNDER CHAPTER 11 BANKRUPTCY COURT PROTECTION SAID THAT WHILE THE COMPANY CANNOT ESTIMATE THE FINAL PROCEEDS THAT MAY BE RECEIVED UPON THE SALE OF ITS ASSETS IT ANTICIPATES THAT NO ASSETS OR PROCEEDS FROM ASSET SALES WILL BE AVAILABLE FOR DISTRIBUTION TO STOCKHOLDERS IT SAID THAT AMOUNTS OWED TO CREDITORS WILL BE MATERIALLY IMPAIRED 9302220063 930222 HOT DEMAND FOR IPO INFORMATION KEEPS DAVID MENLOW'S LINE BUSY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOOM IN NEW STOCK OFFERINGS HAS BEEN A GODSEND FOR STOCK MARKET NEWSLETTER WRITERS HOTLINE TIPSTERS AND ANYONE ELSE WHO APPEARS TO KNOW SOMETHING ABOUT INITIAL PUBLIC OFFERINGS AND FEW HAVE CASHED IN ON THIS MANIA FOR IPO INFORMATION AS SUCCESSFULLY AS DAVID MENLOW HEAD OF IPO FINANCIAL NETWORK A TWOPERSON OPERATION BASED IN SPRINGFIELD NJ WHO IS MR MENLOW HE'S A FORMER CAR SALESMAN MUNICIPALBOND BROKER AND COMMODITY EXECUTIVE HIS BACKGROUND INCLUDES A PERSONAL BANKRUPTCY AND A RESIGNATION FROM SHEARSON LEHMAN BROTHERS INC IN 1982 FOR WHAT THE BROKERAGE FIRM SAID WAS EXCESSIVE TRADING ACCORDING TO SECURITIESINDUSTRY RECORDS YET THAT HASN'T KEPT MR MENLOW FROM DOLING OUT IPO ADVICE OVER THE CNBC CABLE CHANNEL ON NEWS WIRES AND IN NEWSPAPERS INCLUDING USA TODAY AND THE WALL STREET JOURNAL MR MENLOW ALSO RUNS ONE OF THE BIGGEST 900 TELEPHONE HOTLINES DEVOTED TO IPOS THE HOTLINE CHARGES CALLERS 250 A MINUTE FOR RAPIDFIRE IPO PRICING UPDATES AND STOCK PICKS MR MENLOW WON'T DIVULGE HOW MUCH HE HAS MADE FROM THE HOTLINE EXCEPT TO SAY THE WORD HAS BEEN GETTING AROUND AS TO WHAT I DO THE CALLS HAVE BEEN INCREASING DAILY WEEKLY WITH ALL THE EXPOSURE IN THE NEWSPAPER AND ON TV NO ONE HAS ACCUSED THE 42YEAROLD MR MENLOW OF DOING ANYTHING THESE DAYS BUT WHAT HE PROMISES PROVIDING COMMENTARY ON IPOS HE SAYS HE DOESN'T ENGAGE IN HYPE OR TRADE FOR HIMSELF OR OTHERS BUT THE SUDDEN POPULARITY OF MR MENLOW DESPITE HIS BACKGROUND SHOWS HOW EAGER PEOPLE ARE FOR ANY SMIDGEN OF IPO INSIGHT MR MENLOW CALLS HIS 1982 BANKRUPTCY AND THE SHEARSON PROBLEM ANCIENT HISTORY AND STRESSES THAT HE ISN'T A BROKER ANYMORE HE SAYS HE HAS TAKEN PAINS TO MAKE SURE HIS 900 LINE IS OBJECTIVE AND HYPEFREE I'VE BEEN TRAVELING THE STRAIGHT AND NARROW SINCE LEAVING SHEARSON HE SAYS OTHER MOREESTABLISHED WALL STREET ANALYSTS WHO FOCUS ON IPOS HAVE BEEN SIMILARLY BUSY IN RECENT MONTHS AS THE NEWISSUES MARKET HAS SOARED THE PHONE HASN'T STOPPED RINGING FOR WELLKNOWN IPO ANALYSTS SUCH AS ROBERT NATALE OF STANDARD & POOR'S CORP KEITH GOGGIN OF IPO REPORTER AND JAY GOTTLIEB OF NEW ISSUES DIGEST FOREIGN SUBSCRIPTIONS TO MR GOTTLIEB'S DIGEST HAVE TRIPLED IN THE PAST 90 DAYS WITH ORDERS COMING FROM AS FAR AWAY AS SAUDI ARABIA THAT'S THE NEED MR MENLOW HAS TAPPED INTO MR MENLOW IS SOUGHTAFTER BY JOURNALISTS BECAUSE HE DOES A CREDIBLE JOB OF KEEPING TRACK OF THE TORRENT OF IPOS AND THE UNDERWRITERS WHO BRING THEM OUT HE SPENDS HOURS COMPILING LISTS OF EVERY DAY'S OFFERINGS RANKING THEM AND TRACKING THEIR PRICE PERFORMANCE I'M VERY CAREFUL ABOUT WHAT I SAY ADDS MR MENLOW HERE'S WHAT YOU HEAR ON A TYPICAL MINUTE LISTENING TO MR MENLOW'S HOTLINE FIRST AN APPRAISAL OF THE NEWISSUES SCENE WE ARE SEEING SOME FAIRLY DECENT THINGS IN THE MARKETPLACE AS FAR AS CONSTRUCTIVE PRICING WE'RE STARTING TO SHOW A VERY BIG DIVERGENCE HERE CALLERS CAN ALSO SWITCH TO SPECIFIC STOCK PICKS DELIVERED IN WHAT SOUNDS LIKE BROKERSPEAK EAGLE HARDWARE & GARDEN WE ISSUED A BUY SIGNAL YESTERDAY BUT WE'RE GOING TO CANCEL THIS BECAUSE THERE WAS SOME NEGATIVE PRESS FROM DAN DORFMAN YESTERDAY WE'D RATHER PLAY IT SAFE AND PULL YOU OUT OF ANY POTENTIAL PROBLEM HERE THIS IS ALL FINE FOR SMALL INVESTORS WILLING TO PAY FOR IT PROVIDING THEY REALIZE THAT THE IPO GAME IS TILTED HEAVILY IN FAVOR OF BIG INSTITUTIONS WHO GET THE INSIDE WORD ON THE BEST IPOS AND MOST OF THE SOUGHTAFTER SHARES SMALL INVESTORS ARE TYPICALLY LEFT WITH EITHER THE SCRAPS OR WITH THE MOST SPECULATIVE DEALS INDEED MANY EXPERTS ADVISE SMALL INVESTORS TO STAY AWAY FROM GUESSING ABOUT HOT IPOS AND CONCENTRATE ON MOREESTABLISHED COMPANIES MR MENLOW SAYS HE HAS BEEN IN OPERATION FOR 2 1/2 YEARS FORMERLY UNDER THE NAME HUBRIS GROUP HE CHANGED THE NAME TO IPO FINANCIAL NETWORK LAST SUMMER SECURITIESINDUSTRY RECORDS SHOW THAT MR MENLOW SOLD FORDS AND BUICKS IN THE 1970S BEFORE MOVING TO WALL STREET IN 1977 HE WAS HIRED BY SHEARSON A UNIT OF AMERICAN EXPRESS CO IN 1981 WHERE HE SPENT ONLY A YEAR THE RECORDS SHOW HE WAS PERMITTED TO RESIGN FROM SHEARSON IN NOVEMBER 1982 DUE TO EXCESSIVE TRADING IN HIS PERSONAL ACCOUNT SHEARSON OBTAINED A JUDGMENT IN 1986 IN NEW JERSEY STATE COURT FOR 65518 THAT MR MENLOW OWED IT WHICH REMAINED UNPAID TWO YEARS LATER THE RECORDS SHOW SHEARSON DECLINES TO COMMENT OF HIS SHEARSON PROBLEM MR MENLOW SAYS IT WAS A VOLUNTARY RESIGNATION BECAUSE I'D CREATED DEBITS FROM TRADING AND IT WAS LIKE THIS ISN'T COOL WE DON'T CONDONE IT' THAT TYPE OF SITUATION IT WASN'T FROM MISAPPROPRIATING FUNDS I JUST OVERSTEPPED MY BOUNDS IN MY OWN ACCOUNT IT WAS STUPID PART OF THE SHEARSON DEBT HAS BEEN REPAID HE SAYS MR MENLOW WENT ON TO TWO OTHER BROKERAGE FIRMS AFTER SHEARSON LEAVING THE SECOND ONE IN 1989 MR MENLOW SUGGESTS THAT HIS CURRENT BUSINESS IS MUCH FAIRER FOR INVESTORS THAN WHAT HE HAD TO DO AT THE WALL STREET BROKERAGE FIRMS I'VE BEEN IN THE SECURITIES BUSINESS SINCE 1977 AND BASICALLY I AM SO GLAD I'M OUT OF IT I CAN'T TELL YOU I'VE SEEN THE FULL GAMUT OF WHAT'S GOING ON AND I'M SO HAPPY I DON'T HAVE TO PICK UP THE PHONE AND MAKE A SALE IT'S A HORRIBLE EXISTENCE BUT YOU DON'T REALIZE IT UNTIL YOU'RE AWAY FROM IT YOU CAN EXPECT MR MENLOW TO MOVE ONTO OTHER AREAS OF THE MARKET AND OTHER HOTLINES AS SOON AS THE IPO MARKET COOLS DOWN FIRST OF ALL I DON'T THINK THAT'LL BE A PROBLEM UNTIL 1994 HE SAYS BUT WHEN THE IPO MARKET GOES TO SLEEP I'LL HAVE OTHER PRODUCTS THAT'LL DOVETAIL INTO THE IPO MARKET 9302220062 930222 POLITICS & POLICY CLINTON FACES TASK OF ALTERING SPENDING HABITS BUDGET PRIORITIES REQUIRE CONGRESS TO REALLOCATE BILLIONS FOR INVESTMENT BY DAVID ROGERS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SUCCESS OF PRESIDENT CLINTON'S BUDGET PLAN RESTS ON HIS ABILITY TO PERSUADE CONGRESS NOT ONLY TO CUT THE DEFICIT BUT TO REDIRECT BILLIONS TOWARD PUBLIC INVESTMENTS HE BELIEVES ARE IMPORTANT TO THE NATION'S ECONOMY AFTER LONG RESISTING REPUBLICAN PRESIDENTS DEMOCRATS NOW FACE ONE OF THEIR OWN IN THE WHITE HOUSE AND HE DEMANDS CHOICES THAT CHALLENGE OLD ALLIANCES GOVERNING SPENDING PRIORITIES COMPROMISES WILL BE REQUIRED BEFORE THE BUDGET CLEARS CONGRESS BUT IF MR CLINTON MOVES TOO FAR FROM HIS MARK HE RISKS UNDERMINING HIS CREDIBILITY AND THE VOTERS' WILLINGNESS TO ACCEPT THE LARGE TAX INCREASES SO IMPORTANT TO HIS PLAN PENTAGON SPENDING AND BIGTICKET ENTITLEMENTS SUCH AS MEDICARE HEALTH BENEFITS FOR THE ELDERLY ARE EACH BATTLEGROUNDS IN THEIR OWN RIGHT BUT THE NITTYGRITTY TEST IS ELSEWHERE IN THE DOMESTIC BUDGET WHERE THE PRESIDENT SEEKS SAVINGS OF 50 BILLION OVER THE NEXT FOUR YEARS WHILE SIMULTANEOUSLY ADDING ABOUT 120 BILLION UNDER THE RUBRIC OF INVESTMENT AND ECONOMIC STIMULUS I DO PROPOSE TO SPEND SOME MORE MONEY BUT NOT IN THE OLD WAY MR CLINTON SAID LAST WEEK IN ST LOUIS TO EMPHASIZE THIS NEW ORDER THE WHITE HOUSE IS ASKING CONGRESS TO GRANT HIM GREATER POWER TO RESCIND SPENDING PROVISIONS ADDED BY LAWMAKERS A MODIFIED VERSION OF THE LINEITEM VETO IT WILL ALSO PROPOSE TO SET CEILINGS ON TOTAL SPENDING ALTHOUGH THE CAPS WILL BE MORE GENEROUS THAN THE ONES SET BY THE 1990 BUDGET LAW WHILE POWERFUL COMMITTEE CHAIRMEN ALREADY ARE RESISTING ELEMENTS OF THE CLINTON PLAN THE DYNAMICS THIS YEAR ARE DIFFERENT WITH THE HISTORIC TURNOVER IN CONGRESS AND THE DEMOCRATS' COMMON STAKE IN MR CLINTON'S SUCCESS UNDER THE BUSH AND REAGAN ADMINISTRATIONS THE APPROPRIATIONS COMMITTEE LEADERSHIP BUILT UP POLITICAL CAPITAL BY PROTECTING DEMOCRATIC PROGRAMS BUT IT THEN CHARGED A COMMISSION OF SORTS BY EARMARKING FUNDS FOR HOMESTATE PRIORITIES NOW MR CLINTON AS THE NATION'S TOP DEMOCRAT CAN DRAW THE LINES MORE CLEARLY APPROPRIATORS WILL BE JUDGED BY RANKANDFILE MEMBERS LOYAL TO THE PRESIDENT AND SKITTISH OF REPUBLICAN ATTACKS ON THE SPENDING ISSUE IF THEY THE APPROPRIATIONS COMMITTEE MAKE A DEAL WITH THE PRESIDENT THAT'S ONE THING SAID REP GEORGE MILLER CHAIRMAN OF THE NATURAL RESOURCES COMMITTEE AND CLOSE FRIEND OF BUDGET DIRECTOR LEON PANETTA IF THEY'RE UNDERMINING THE PRESIDENT THE BENEFIT OF THE DOUBT IS GOING TO GO TO THE PRESIDENT MINDFUL OF THE BATTLE AHEAD MR CLINTON RECENTLY MET PRIVATELY WITH THE NEW HOUSE APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER WHO COULD PROVE TO BE A MAJOR ASSET TO INVOKING DISCIPLINE THE 83YEAROLD KENTUCKIAN SHUNS THE EARTHY PORKBARREL IMAGE RELISHED BY HIS PREDECESSOR REP JAMIE WHITTEN D MISS MR NATCHER'S COURTLY STYLE BELIES A STUBBORN SCHOOLMASTER STREAK SEEN IN AN EXCHANGE WITH HIS FELLOW OCTOGENARIAN REP SIDNEY YATES AT A CLOSED DOOR MEETING LAST WEEK REP YATES A GENTLE ILLINOIS DEMOCRAT OVERSEEING ENERGY AND NATURAL RESOURCES PROGRAMS ASKED IF HE WOULD BE PROHIBITED FROM MAKING CHANGES IN THE MORE THAN 16 BILLION STIMULUS BILL EXPECTED TO BE SENT TO CONGRESS THIS WEEK SID YOU'RE NOT PROHIBITED FROM DOING IT REP NATCHER ANSWERED I DON'T WANT YOU TO DO IT SID DON'T DO IT MR CLINTON'S BUDGET IS ITSELF A POLITICAL DOCUMENT ALREADY SHAPED BY BEHINDTHESCENES COMPROMISES ON REALLOCATING FUNDS SENATE BUDGET COMMITTEE CHAIRMAN JAMES SASSER'S HOME STATE OF TENNESSEE WILL BENEFIT FROM INCREASED SPENDING FOR A NEW RESEARCH REACTOR FOR THE ADVANCED NEUTRON SOURCE PROJECT AND DURING THE LAST WEEKEND OF WHITE HOUSE DELIBERATIONS HOUSE SPEAKER THOMAS FOLEY SPOKE WITH HIS FORMER PROTEGE MR PANETTA TO ARGUE AGAINST DEMANDING UPFRONT SAVINGS FROM FEDERAL POWER MARKETING AGENCIES IMPORTANT TO THE FRAGILE ECONOMY IN THE PACIFIC NORTHWEST THE FINAL PLAN STILL SPEAKS AMBITIOUSLY OF FUTURE REFORMS BUT FOURYEAR BUDGET TABLES SHOW ONLY 200 MILLION IN SAVINGS ALL AFTER THE 1994 ELECTION MANY OF THE SPENDING INITIATIVES FAVORED BY MR CLINTON FIT THE CONVENTIONAL DEFINITION OF PUBLIC INVESTMENT HIGHWAYS AND HIGHSPEED RAIL PROJECTS NUCLEAR FUSION RESEARCH YOUTH APPRENTICESHIP PROGRAMS AND AN EXPANDED HEAD START FOR POOR CHILDREN BUT CRITICS ARGUE THE DEFINITION IS STRETCHED THIN ELSEWHERE TO SUIT DEMOCRATS DESIRE TO FUND GRANTS TO STATE AND LOCAL GOVERNMENTS FOR EXAMPLE OR HELP INSULATE THE HOMES OF LOWINCOME FAMILIES IT'S HARD TO THINK OF A PROGRAM FOR WHICH YOU CAN'T MAKE AN INVESTMENT ARGUMENT OR CONCOCT AN INVESTMENT RATIONALE SAID JOHN COGAN A STANFORD UNIVERSITY ECONOMIST WHO SERVED IN THE REAGAN ADMINISTRATION'S BUDGET OFFICE ROBERT GRADY FORMER ASSOCIATE DIRECTOR OF THE BUSH BUDGET OFFICE SAID THE EMPHASIS ON HEAD START AND RESEARCH AND DEVELOPMENT PICKS UP WHERE THE LAST ADMINISTRATION LEFT OFF BUT COMES WITHOUT THE SAME RESTRAINT ON OVERALL SPENDING TO THE EXTENT YOU GIVE THE APPROPRIATORS MORE ROOM HE SAID IT'S LESS LIKELY THEY CUT LOWRETURN PROGRAMS THIS IS A MAJOR RISK TO THE CLINTON STRATEGY WHICH BUILDS IN ENOUGH EXTRA SPENDING TO GIVE LAWMAKERS OPPORTUNITIES TO PARE BACK ON HIS INITIATIVES TO SAVE THEIR OWN FOR EXAMPLE THE PRESIDENT WANTS 13 BILLION MORE OVER THE NEXT FOUR YEARS FOR THE NATIONAL INSTITUTES OF STANDARDS AND TECHNOLOGY THE INVESTMENT IS POPULAR AND DOVETAILS WITH HIS LARGER INDUSTRIAL POLICY BUT THE SAME APPROPRIATIONS SUBCOMMITTEE THAT MUST DECIDE ON THIS REQUEST IS ALSO BEING ASKED UP TO GIVE UP HUNDREDS OF MILLIONS OF DOLLARS IN FAVORED PROJECTS IN COMMERCE AND JUSTICE DEPARTMENT BUDGETS THE STATE JUSTICE INSTITUTE A FEDERALLY FUNDED PROGRAM TO ASSIST STATE COURTS HAD THE MISFORTUNE OF TESTIFYING FOR MORE MONEY LAST WEEK EVEN AS MR PANETTA WAS RELEASING DOCUMENTS SHOWING HE WANTS TO END THE PROGRAM BACKED BY SUBCOMMITTEE CHAIRMAN REP NEAL SMITH WHEN THEY PUT TOGETHER A BUDGET THEY HAVE TO FIND A WAY TO MAKE THE FIGURES LOOK BETTER SAID MR SMITH A CRUSTY IOWA DEMOCRAT ALREADY ANNOYED THAT THE ADMINISTRATION HADN'T MADE ROOM IN ITS STIMULUS PACKAGE FOR A FAVORITE SMALL BUSINESS ADMINISTRATION TREEPLANTING PROGRAM WHETHER OR NOT IT'S A REPUBLICAN OR DEMOCRATIC PRESIDENT DOESN'T MATTER HE SAID EACH ONE OF US ARE PRIMA DONNAS WE REPRESENT 500000 CONSTITUENTS AND THEY HAVE TO HAVE A SAY GOVERNMENT CONTRACTORS AREN'T IMMUNE FROM THE SAME CHOICES GENERAL ATOMICS FOR EXAMPLE STANDS TO BENEFIT FROM THE ADMINISTRATION'S INCREASED EMPHASIS ON NUCLEAR FUSION BUT IT FEARS PROPOSED CUTS IN A HIGHTEMPERATURE GAS REACTOR PROGRAM SEN BENNETT JOHNSTON CHAIRMAN OF THE SENATE ENERGY COMMITTEE AND THE APPROPRIATIONS SUBCOMMITTEE THAT WILL HELP DECIDE ON THE CUT IS A STRONG NUCLEAR ALLY THE SAN DIEGOBASED CONTRACTOR BUILT POLITICAL SUPPORT ELSEWHERE THROUGH POLITICAL ACTION COMMITTEE CONTRIBUTIONS OF MORE THAN 310000 TO HOUSE AND SENATE CANDIDATES IN THE LAST ELECTION TWOTHIRDS OF THAT WENT TO DEMOCRATS MANY OF WHOM SIT ON THE APPROPRIATIONS COMMITTEE WE'RE TAKING A LOOK AT IT SAID NORVAL CAREY OF THE COMPANY'S WASHINGTON OFFICE BUT WE'RE CONVINCED AS EVER IT'S RIGHT 9302220061 930222 TECHNOLOGY BRIEF MERCK & CO FDA PANEL RECOMMENDS EXPANDED USE OF HEART DRUG MERCK & CO RAHWAY NJ SAID AN ADVISORY COMMITTEE OF THE FOOD AND DRUG ADMINISTRATION RECOMMENDED APPROVAL OF THE COMPANY'S VASOTEC HEART DRUG FOR EXPANDED USE THE PANEL RECOMMENDED USE OF THE DRUG TO PREVENT SYMPTOMATIC HEART FAILURE IN ASYMPTOMATIC PATIENTS WITH LEFT VENTRICULAR DYSFUNCTION VASOTEC IS CURRENTLY USED TO REDUCE MORTALITY IN ALL STAGES OF SYMPTOMATIC CONGESTIVE HEART FAILURE AND FOR THE TREATMENT OF HYPERTENSION THE BROADENED INDICATION WAS BASED ON DATA FROM MAJOR NATIONAL INSTITUTES OF HEALTH STUDIES WHICH SHOWED VASOTEC DELAYED THE ONSET OF OVERT HEART FAILURE AND DECREASED THE FREQUENCY OF HOSPITALIZATION FOR HEART FAILURE IN ASYMPTOMATIC PATIENTS WITH LEFT VENTRICULAR DYSFUNCTION VASOTEC IS A TYPE OF HEART DRUG KNOWN AS AN ANGIOTENSINCONVERTING ENZYME INHIBITOR OR ACE INHIBITOR SUCH DRUGS ACT BY BLOCKING THE ENZYME THAT CREATES ANGIOTENSIN II A POWERFUL CONSTRICTOR OF BLOOD VESSELS ACE INHIBITORS DILATE BLOOD VESSELS MAKING BLOOD FLOW EASIER 9302220060 930222 TECHNOLOGY & MEDICINE INFORMATION AGE PUBLISHERS DELIVER REAMS OF DATA ON CDS BY WILLIAM M BULKELEY INCREASINGLY PUBLISHERS ARE MAILING MONTHLY PUBLICATIONS FILLED WITH AS MUCH INFORMATION AS SEVERAL ENCYCLOPEDIAS BUT MAILMEN CAN RELAX THEY'RE SENDING THEM ON HALFOUNCE COMPACT DISKS SUBSCRIBERS CAN NOW GET WEEKLY AND MONTHLY DISKS CONTAINING MASSIVE GOBS OF CHANGING INFORMATION ABOUT THINGS LIKE NEW PATENTS RESTAURANT EQUIPMENT AND GOVERNMENT REGULATIONS AS A RESULT SOME ARE CHANGING THE WAY THEY USE DATA ENGINEERS NOW CAN GET THEIR HANDS ON PATENT INFORMATION THAT USED TO BE ACCESSIBLE ONLY TO PATENT LAWYERS IT'S A STRATEGIC TOOL FOR DOING INDUSTRIAL SPYING SAYS MICHAEL VIOLA A TECHNICAL MANAGER AT POLAROID CORP CAMBRIDGE MASS WHO WATCHES PATENTS FILED BY JAPAN'S FUJI PHOTO FILM CO AMONG OTHERS MICROPATENT INC NEW HAVEN CONN SELLS THE MONTHLY ABSTRACTS OF US OR EUROPEAN PATENTS ON CDROM FOR 1200 A YEAR DOCTORS WHO DON'T HAVE TIME TO GO TO A LIBRARY CAN CHECK THE LATEST LITERATURE ABOUT A DISEASE WHEN IT'S ON A DESKSIDE CDROM SETH HABER CHIEF OF PATHOLOGY AT KAISER PERMANENTE IN SANTA CLARA CALIF SAYS HE CONSULTS PATHLINE A SECTION OF THE HUGE MEDLINE DATABASE OF MEDICAL ARTICLES COLLECTED BY THE NATIONAL LIBRARY OF MEDICINE THREE OR FOUR TIMES A DAY ON DISK BEFORE ARIES SYSTEMS CORP NORTH ANDOVER MASS CREATED THE 695 A YEAR PATHLINE DISK DR HABER CONSULTED THE DATABASE AT A LIBRARY 200 YARDS AWAY JUST ONCE A MONTH HE SAYS CDROM DISKS LOOK LIKE AUDIO COMPACT DISKS BUT THEY CONTAIN DIGITAL DATA RATHER THAN MUSIC ONE CDROM STORES 680 MEGABYTES OF DATA THE EQUIVALENT OF 20 FOURDRAWER FILE CABINETS USERS CAN'T STORE THEIR OWN DATA ON CDROM WHICH STANDS FOR COMPACT DISKREAD ONLY MEMORY BUT WITH THEIR COMPUTERS THEY CAN SEARCH FOR STORED DATA USING KEY WORDS OR INDEXES AND PRINT IT OUT OR SEND IT OFF CDROM HAS LONG BEEN A TECHNOLOGY LOOKING FOR A MARKET BUT IT'S REALLY HOT RIGHT NOW SAYS KURT MUELLER PRESIDENT OF DATAWARE TECHNOLOGIES INC A CAMBRIDGE FIRM THAT SELLS SOFTWARE USED BY MANY OF THE CDROM DEVELOPERS HE SAYS BIG COMPANIES ARE STARTING TO PUT INTERNAL REPAIR MANUALS AND PRODUCT INFORMATION ON CDROM SOME GOVERNMENT AGENCIES ARE USING CDROM FOR REGULATIONS AND INFORMATION COMPANIES ARE CONVERTING TEXT AND ONLINE DATA TO CDROM IN ADDITION CONSUMER SALES OF MULTIMEDIA BOOKS WITH SOUND AND MOVIE CLIPS ARE RISING ABOUT TWO MILLION COMPUTERS NOW HAVE CDROM DRIVES DOUBLE THE TOTAL AT THE END OF 1991 SAYS MARKET RESEARCHER INFOCORP SANTA CLARA CALIF SOME OF THE MOST INNOVATIVE PUBLICATIONS USING CDROM TECHNOLOGY ARE COMING FROM ENTREPRENEURS WHO DON'T OWN THE INFORMATION THEY SELL FINDING PUBLIC DOMAIN INFORMATION THAT CAN BE REPACKAGED AND SOLD TO SUBSCRIBERS HAS CREATED A NUMBER OF SMALL BUSINESSES LAW OFFICE INFORMATION SYSTEMS VAN BUREN ARK SELLS CDROMS CALLED CASEBASE WHICH CONTAIN STATE SUPREME COURT AND APPELLATE COURT DECISIONS FOR 11 SMALL STATES UPDATED FOUR TIMES ANNUALLY AND PRICED AT 3295 A YEAR THE PUBLICATION COMPARES FAVORABLY WITH PAPERBASED BOOKS SAYS DAVID JAMELL COFOUNDER IT APPEALS TO SMALL FIRMS AND SOLO PRACTITIONERS WHO CAN'T AFFORD TO GET THE INFORMATION FROM ONLINE LEGAL DATABASES THAT CHARGE FOR EACH MINUTE ON THE LINE COUNTERPOINT PUBLISHING INC CAMBRIDGE HAS ABOUT 600 SUBSCRIBERS FOR ITS WEEKLY VERSION OF THE FEDERAL REGISTER THE DAILY COMPENDIUM OF ALL PROPOSED AND FINAL FEDERAL REGULATIONS EVEN THOUGH IT COSTS 1950 A YEAR OR NEARLY FIVE TIMES THE 415 THE GOVERNMENT CHARGES FOR A DAILY PAPER COPY SUBSCRIBERS SAY THE EXTRA COST IS WORTH IT BECAUSE IT'S SO MUCH EASIER TO FIND INFORMATION ONE SUBSCRIBER CATHY SCHUETTENBERG REGULATORY AFFAIRS ANALYST AT PHILLIPS PETROLEUM CO IN BARTLESVILLE OKLA SAYS HAPPILY I DON'T HAVE A SHELF FULL OF FEDERAL REGISTERS I JUST HAVE A LITTLE DISK IN MY DRAWER SOMEDAY GOVERNMENT AGENCIES ARE LIKELY TO PUBLISH THE MATERIAL THEMSELVES THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION ALREADY SELLS AN 88 DISK OF REGULATIONS BUT ENTREPRENEURS WILL OFTEN BE ABLE TO PROVIDE MORE INFORMATION OR DESIGN WAYS TO MAKE IT EASIER TO GET AT EAGLE EYE PUBLISHERS INC ARLINGTON VA PUBLISHES A 2495 A YEAR QUARTERLY DATABASE OF FEDERAL PRIME CONTRACTORS PROVIDING A RESOURCE FOR COMPETITORS AND SUBCONTRACTORS TO SEARCH ONLY ABOUT 40 OF THE INFORMATION COMES FROM THE GENERAL SERVICES ADMINISTRATION WITH THE REST COLLECTED FROM OTHER SOURCES SAYS TIMOTHY YEANEY VICE PRESIDENT OTHER ENTREPRENEURS HAVE FOUND NICHES BY COMBINING INFORMATION FROM MANY COMPETITIVE BUSINESSES STEVEN KATZ PRESIDENT OF AUTOMATED CATALOG SERVICES INC WAYNE PA WAS AN ENTREPRENEUR LOOKING FOR WORK WHEN A FRIEND WHO MAKES COMMERCIAL DISHWASHERS GAVE HIM HIS IDEA FOR A MONTHLY CATALOG OF ALL MANUFACTURERS' FOOD SERVICE EQUIPMENT NOW HE CHARGES COMPANIES FROM 1100 TO 25000 FOR THE SERVICE DEPENDING ON HOW MANY PAGES OF THEIR CATALOGS THEY WANT ON THE DISK AFTER STARTING A YEAR AGO WITH 100 MANUFACTURERS HE'S UP TO 220 A SINGLE DISK NOW HOLDS THE EQUIVALENT OF 7000 PAGES OF INFORMATION ON ALMOST 50000 DIFFERENT PRODUCTS FROM SALADBAR SNEEZEGUARDS TO DEEPFAT FRYERS CURRENTLY 500 DEALERS DISTRIBUTORS AND CHAINS SUBSCRIBE PAYING 600 TO 1600 A YEAR FOR THE MONTHLY DISKS WHILE MOST ESTABLISHED PUBLISHERS TAKE THEIR EXISTING INFORMATION AND PUT IT ON DISK AT A PRICE THAT WON'T CANNIBALIZE SALES OF PRINT AND ONLINE SERVICES SOME FIRMS HAVE SPOTTED NEW MARKETS ON CDROM ZIFF COMMUNICATIONS CORP PUBLISHER OF PC MAGAZINE AND OTHERS SAW A MARKET IN THE CORPORATE PC MANAGERS WHO WANTED TO SOLVE USER PROBLEMS ZIFF GOT THE TECHNICAL NOTES AND MANUALS USED BY SERVICE PEOPLE AT SOFTWARE VENDORS FOR 50 DIFFERENT PROGRAMS AND PACKAGED THEM ON A SINGLE CDROM UPDATED MONTHLY AND PRICED AT 1295 A YEAR REDGATE COMMUNICATIONS CORP VERO BEACH FLA PUBLISHES BOTH A PAPER AND A CDROM CATALOG OF PRODUCTS DESIGNED TO WORK WITH THE APPLE MACINTOSH COMPUTER TED LEONSIS PRESIDENT OF REDGATE LIKES THE ECONOMICS OF CDROM THE HARD COPY BOOK COSTS US 6 TO PRINT AND SHIP THE CDROM COSTS 150 WE SELL THE BOOK FOR 1495 WE SELL THE CD FOR 99 9302220059 930222 BUSINESS BRIEF CELINA FINANCIAL CORP NATIONAL MUTUAL INSURANCE OFFERS TO TAKE FIRM PRIVATE CELINA FINANCIAL CORP CELINA OHIO SAID IT WILL BE TAKEN PRIVATE THROUGH A TENDER OFFER BY ONE OF ITS MEMBER MUTUAL INSURANCE COMPANIES NATIONAL MUTUAL INSURANCE IS OFFERING 580 A SHARE FOR THE 750000 OUTSTANDING CLASS A COMMON SHARES OF CELINA A GROUP OF THREE INSURANCE COMPANIES THE THREE COMPANIES ALREADY OWN 55 OF CELINA DON W MONTGOMERY CELINA'S CHAIRMAN SAID CELINA HAS EXITED MANY BUSINESSES INCLUDING REINSURANCE AND DATA PROCESSING MAKING A HOLDING COMPANY NO LONGER NECESSARY HE ALSO SAID THE EXPENSES OF BEING A PUBLIC COMPANY ARE TOO HIGH THE OFFER IS SUBJECT TO VARIOUS CONDITIONS INCLUDING THE TENDER OF AT LEAST A MAJORITY OF SHARES HELD BY PARTIES OTHER THAN CELINA AND ITS AFFILIATES 9302220058 930222 BUSINESS BRIEF BAXTER INTERNATIONAL INC TALKS END OVER ACQUISITION OF STUART MEDICAL BUSINESS BAXTER INTERNATIONAL INC SAID TALKS WERE TERMINATED ON THE ACQUISITION OF THE MEDICALPRODUCTS DISTRIBUTION BUSINESS OF CLOSELY HELD STUART MEDICAL INC FOR STOCK AND DEBT IN NOVEMBER THE DEERFIELD ILL MEDICAL PRODUCTS AND SERVICES CONCERN ANNOUNCED THAT IT HAD AGREED IN PRINCIPLE TO SWAP 65 MILLION COMMON SHARES IN EXCHANGE FOR THE UNIT OF GREENSBURG PABASED STUART IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY BAXTER CLOSED AT 28 DOWN 1625 BAXTER'S STOCK SLIPPED AMID INVESTOR CONCERNS ABOUT HOW THE CLINTON ADMINISTRATION MIGHT REFORM HEALTH CARE AT THAT CLOSING PRICE THE TRANSACTION HAD AN INDICATED VALUE OF 182 MILLION AS PART OF THE ACQUISITION BAXTER HAD ALSO TENTATIVELY AGREED TO ASSUME 155 MILLION OF STUART DEBT A BAXTER SPOKESMAN SAID THE TWO COMPANIES MUTUALLY AGREED TO END THE TALKS BECAUSE OF DIFFERENCES OVER MINOR FINANCIAL DETAILS 9302220057 930222 ADVERTISING MORE MARKETERS TAP EMPLOYEES TO STAR IN ADS BY KEVIN GOLDMAN WHEN SPRINT WANTED TO JAZZ UP ITS IMAGE AND RESTORE ITS COMPETITIVE EDGE IN THE LONGDISTANCE PHONE MARKET IT HIRED SASSY AND CLASSY ACTRESS CANDICE BERGEN WHEN RIVAL MCI COMMUNICATIONS WANTED TO DO THE SAME IT TAPPED LISA MIKKELSON AND WILMA KNOX LIKE A GROWING NUMBER OF ADVERTISERS MCI IS SHUNNING THE GLAMOURPUSSES AND THE STUFFY HEAVILY COMPENSATED CHIEF EXECUTIVE OFFICERS WHO POPULATED ADS IN THE FREESPENDING 1980S REMEMBER LEE IACOCCA INCREASINGLY WORKER BEES FROM THE LABORER ON THE LOADING DOCK TO THE STIFF BEHIND THE COUNTER AT A FASTFOOD DINER ARE THE STARS OF TELEVISION COMMERCIALS ADS FOR MCDONALD'S HAMBURGERS AND SUBWAY SANDWICHES NYNEX PHONE SERVICE AND UNITED PARCEL SERVICE GENERAL MOTORS CORP'S SATURN AUTOMOBILES AND EVEN STRAITLACED SHEARSON LEHMAN BROTHERS SHUN BUTTONEDDOWN EXECUTIVES IN FAVOR OF TESTIMONIALS FROM EMPLOYEES AND CUSTOMERS THERE WAS A TIME WHEN STRUGGLING ACTORS PORTRAYED SOCALLED CONSUMERS WHILE COMPANIES STILL ARE EMPLOYING ACTORS FOR COMMERCIALS THEY ARE INCREASINGLY USING ACTUAL EMPLOYEES TO PERSONALIZE THEIR PRODUCTS MARKETERS AND MADISON AVENUE EXECUTIVES SAY THE REASON FOR THE GROWTH IS SO SIMPLE IT SOUNDS LIKE AN AD SLOGAN REAL PEOPLE HAVE REAL CREDIBILITY CORPORATE EXECUTIVES ARE NOW PERCEIVED AS BEING OUT OF TOUCH WITH THE MASSES AND ARE UNDER ATTACK FOR EXCESSIVE SALARIES TAKE A LOOK AT HOW MANY HAVE BEEN GIVEN THE GATE BY THEIR OWN BOARDS IN THE PAST YEAR NOW THEY ARE GETTING BOOTED OUT OF AD CAMPAIGNS AS WELL ENTER LISA MIKKELSON AND WILMA KNOX THEY ARE ACTUAL MCI OPERATORS AND IN MCI SPOTS THEY PROMOTE A FREE MONTH OF LONGDISTANCE SERVICE FOR NEW SUBSCRIBERS THE AD PRODUCED BY AD AGENCY MESSNER VETERE BERGER MCNAMEE SCHMETTERER IS ONE OF A SERIES OF FOUR SPOTS IN WHICH MCI GATHERED HUNDREDS OF EMPLOYEES IN A GIGANTIC MCI PHONE CENTER BASED IN PHOENIX TO BE VIDEOTAPED WHILE HANDLING CALLS ANOTHER COMMERCIAL SHOWS SOME 800 MCI OPERATORS CELEBRATING THE SIGNUP OF THE TENMILLIONTH CUSTOMER IT IS A SURREAL SCENE AS DOZENS OF MCI EMPLOYEES GRIN INTO ONE OF FIVE CAMERAS AND SAY BEING A PART OF HISTORY IS EXCITING OR WE'RE A PART OF HISTORY TODAY AND THEN WHOOP HOLLER EXCHANGE HIGH FIVES AND TOSS CONFETTI AS AN OVERSIZED TOTE BOARD TICKS OFF TO THE MAGIC NUMBER THIS IS WALLTOWALL REAL SAYS BARRY VETERE A PARTNER IN MCI'S AD AGENCY THIS APPROACH WAS PERFECT SINCE MCI IS IN A PEOPLECONTACT INDUSTRY WE WANTED TO PUT A FACE ON THE COMPANY MR VETERE SAYS NO LINES WERE SCRIPTED INSTEAD EMPLOYEES WERE PREINTERVIEWED AND THEN WERE ASKED TO REPEAT SOME OF THEIR REMARKS ON CAMERA FLUBS WERE ALSO RECORDED IN FACT MCI IS PLANNING TO RELEASE A SPOT WITHIN THE NEXT TWO WEEKS THAT BEGINS WITH A VOICEOVER SAYING PEOPLE CALL US ALL THE TIME AND ASK WHETHER THOSE ARE REAL MCI EMPLOYEES WELL THEY'RE NOT ACTORS THEN MCI'S OWN VERSION OF BLOOPERS AND BLUNDERS IS SHOWN SUCH AN APPROACH HUMANIZES A LARGE FACELESS CORPORATION SAYS ELLEN G GARTRELL THE DIRECTOR OF THE CENTER FOR SALES ADVERTISING AND MARKETING HISTORY AT DUKE UNIVERSITY THIS IS AN EMOTIONAL APPEAL IN ADVERTISING IT'S A WAY TO USE MIDDLEOFTHEROAD PEOPLE INSTEAD OF EXECUTIVES IN IVORY TOWERS EVEN WHEN EXECUTIVES POP UP IN ADS THESE DAYS IT RARELY IS A REGAL APPEARANCE IN LUXURIOUS SURROUNDINGS FOR INSTANCE CHARLES LAZARUS THE CHAIRMAN OF TOYS R US APPEARS IN AN AMERICAN EXPRESS AD LEANING BACK AND CHATTING LAZILY ABOUT KIDS DANNY MEYER THE OWNER OF NEW YORK'S TONY UNION SQUARE CAFE IS ALSO FEATURED IN ADS FOR THE CREDITCARD COMPANY DISCUSSING USING LEFTOVERS TO FEED THE HOMELESS AND THE GUY WHO RUNS 1800FLOWERS APPEARS IN AN AD SHOWING A TACKY ERSATZ TALK SHOW CHAMPIONING THE DELIVERY SERVICE REAL PEOPLE ARE ANOTHER DEVICE TO GET PEOPLE TO PAY MORE ATTENTION TO THE COMMERCIAL AND TO BREAK THROUGH THE CLUTTER SAYS MS GARTRELL IF PEOPLE CAN SEE THEMSELVES IN A COMMERCIAL AS OPPOSED TO SOMEONE THEY MIGHT NOT IDENTIFY WITH PERHAPS THE ADS WILL BE MORE EFFECTIVE IT'S A WAY TO GET IN TOUCH WITH THE CONSUMER BREAKING THROUGH THE CLUTTER IS EXACTLY WHAT AD AGENCY HAL RINEY & PARTNERS' CHICAGO OFFICE PROPOSED TO SUBWAY ASSOCIATES THE CHAIN OF SANDWICH STORES BASED IN MILFORD CONN INSTEAD OF A GLITZY AD CAMPAIGN THAT MAY BE MORE COMFORTABLE ON SAY MTV THE AGENCY CAME UP WITH A SERIES OF SPOTS THAT WOULD BE MORE AT HOME ON THE FAMILY CHANNEL JUST PLAIN FOLKS AT THEIR WORK STATIONS IN THE YELLOW AND WHITE EATERIES ALL CHATTING UP THEIR EXPERTISE AS SANDWICH ARTISTS THE AGENCY HELD SCREEN TESTS AT SUBWAY LOCATIONS FOR BUDDING STARS NATIONWIDE BUT SUBWAY UNLIKE MCI WASN'T TAKING ANY CHANCES IT SCRIPTED EVERYTHING THEN THEY HAD TO MEMORIZE SAYS DICK PILCHEN SUBWAY'S VICE PRESIDENT FOR MARKETING EMPLOYEES ARE THE BEST SPOKESPEOPLE CONSUMERS SAYS MR PILCHEN HAVE COME TO KNOW THAT WHEN A CELEBRITY ENDORSES A PRODUCT IT IS USUALLY THE MONEY THAT IS THE MOTIVATION AND NOT THE STAR'S ACTUAL LOVE FOR THE MERCHANDISE WHEN YOU INTERVIEW ACTUAL EMPLOYEES YOU GET A SENSE OF HOW THE COMPANY IS RUN INSTEAD OF JUST PROPPING UP THE CHAIRMAN HE ADDS UPS TOOK THE WORKER ETHIC A STEP FURTHER INSTEAD OF FEATURING THE SHIPPER'S OWN RANK AND FILE AD AGENCY AMMIRATI & PURIS SHOT A SERIES OF JARRING GRAINY PROFILES IN HANDHELDCAMERA STYLE TO FOCUS ON REAL UPS CUSTOMERS A HEMAN ON THE LOADING DOCK CLERKS IN THE MAILROOM A SECRETARY WHO DOESN'T DEIGN TO GET HER BOSS'S COFFEE THE ACTING FEES FOR THE EMPLOYEES DON'T EXACTLY BREAK THE BANK MOST TIMES THEY RECEIVE 41425 A DAY WHICH IS SCREEN ACTORS GUILD SCALE EVEN THOUGH NATURALLY THEY AREN'T SAG MEMBERS THE ONETIME APPEARANCE MAKES THEM ELIGIBLE TO JOIN SAG HOWEVER IF THEY FALL IN LOVE WITH THE CAMERA MOST OF THE COMMERCIALS IN THE VARIOUS CAMPAIGNS WERE SHOT IN THREE DAYS OR LESS MCI DIDN'T PAY ALL OF ITS 800 EMPLOYEES WHO APPEARED IN THE CELEBRATION COMMERCIAL IT ONLY PAID THOSE WHO ACTUALLY SPOKE ON CAMERA WHILE THE OTHERS PERFORMED THEIR JOBS AS THE CAMERAS ROLLED PREDICTABLY THE TREND TO USE ACTUAL EMPLOYEES DOESN'T THRILL THE SCREEN ACTORS GUILD WE WANT ACTORS TO DO THIS WORK SAYS JOHN SUCKE EXECUTIVE DIRECTOR OF SAG'S NEW YORK BRANCH AN ACTOR MAKES A BETTER PRESENTATION THAN ANY EMPLOYEE OUR PEOPLE ARE REAL TOO HE COMPLAINS FINDING THOSE EMPLOYEES WHO CAN PERFORM IN FRONT OF A CAMERA WASN'T EASY CONCEDES BERNIE BLOOMFIELD MANAGING DIRECTOR OF MARKETING COMMUNICATIONS AT NYNEX WHICH HAS BEEN RUNNING SIX SPOTS SHOWING WORKERS ON THE JOB INCLUDING A WOMAN WHO REPAIRS PAY PHONES AND A CELLULARPHONE SALESMAN NYNEX CONTACTED SUPERVISORS FOR RECOMMENDATIONS OF THE BEST AND BRIGHTEST AND LOOKED OVER 300 EMPLOYEES FOR THE FIRST SIX COMMERCIAL PROFILES WHEN THEY WERE FINALLY CHOSEN A CAMERA CREW FROM NYNEX'S AGENCY WPP GROUP'S OGILVY & MATHER SIMPLY FOLLOWED THE INDIVIDUALS AND RECORDED CONVERSATIONS A LOT WENT INTO THE EDITING MR BLOOMFIELD SAYS SO ONE NYNEX SPOT DUTIFULLY RECORDS THE GUSHY REMARKS OF A REPAIRMAN NAMED DOMINICK VENTOLA WHO HAS BEEN BASED IN NEW YORK'S SOUTH BRONX FOR 22 YEARS I GET REAL QUICK SATISFACTION ON GIVING PEOPLE A DIAL TONE IT'S A LINE FEW SELFRESPECTING COPYWRITERS WOULD DARE PUT TO PAPER AND ONE THAT A STAR SPOKESWOMAN LIKE CANDICE BERGEN MIGHT HAVE TROUBLE PULLING OFF SWEDISH SAAB AUTOMOBILE AB TAPPED LOWE BRINDFORS OF SWEDEN FOR ITS ESTIMATED 12 MILLION ACCOUNT IN SWEDEN AND FINLAND THE SWEDISH OFFICE OF OMNICOM GROUP'S BBDO PREVIOUSLY HANDLED THE ACCOUNT ACCORDING TO LOWE GROUP LOWE BRINDFORS'S LONDONBASED PARENT AGENCY INTERPUBLIC GROUP OF COS ACQUIRED THE BRINDFORS AGENCY LAST YEAR SAAB AUTOMOBILE IS A JOINT VENTURE OF SAABSCANIA AB AND GENERAL MOTORS CORP LOWE BRINDFORS ALSO WON THE ACCOUNTS FOR GM'S AMERICAN BRANDS IN SWEDEN NEW YORK SHOP ANGOTTI THOMAS HEDGE HANDLES SAAB'S ESTIMATED 30 MILLION ACCOUNT IN THE US ACCOUNT SARA LEE CORP CHICAGO TAPPED INTERPUBLIC GROUP'S LONG HAYMES & CARR WINSTONSALEM NC FOR ITS BALI BRAND OF WOMEN'S INTIMATE APPAREL INDUSTRY EXECUTIVES SAID BILLINGS COULDN'T BE DETERMINED THE ACCOUNT PREVIOUSLY WAS AT SAATCHI & SAATCHI ADVERTISING NEW YORK YOOHOO THE NEW YORK OFFICE OF CME KHBB A UNIT OF SAATCHI & SAATCHI PLC WON THE YOOHOO CHOCOLATE BEVERAGE ACCOUNT HANDLED UNTIL RECENTLY BY GEER DUBOIS NEW YORK YOOHOO CHOCOLATE BEVERAGE CORP IS A UNIT OF GROUPE PERNOD RICARD'S AUSTIN NICHOLS & CO 9302220056 930222 LEISURE & ARTS BUSINESS BOOKSHELF FUTURE OF HIGHTECH BIG BLUE AND BEYOND BY LAURENCE HOOPER COMPUTER WARS HOW THE WEST CAN WIN IN A POSTIBM WORLD TIMES BOOKS 272 PAGES 23 APPEARS IN STORES JUST AS INTERNATIONAL BUSINESS MACHINES CORP DITCHES ITS OLD MANAGEMENT TEAM AND REPORTS RECORDBREAKING LOSSES IBM MAY NAME A NEW CHIEF EXECUTIVE WHILE THE AUTHORS ARE ON THEIR PUBLICITY TOUR AS A RESULT THIS BOOK WILL LIKELY BE REQUIRED READING FOR ANYONE ITCHING TO KNOW WHAT HAPPENED TO BIG BLUE BUT DESPITE ITS UNCANNY PRESCIENCE COMPUTER WARS ISN'T TOTALLY FOCUSED ON IBM INSTEAD AUTHORS CHARLES H FERGUSON AND CHARLES R MORRIS USE IBM'S WOES AS A SPRINGBOARD TO PROPOSE A BROADER THEORY ABOUT HIGHTECH SUCCESS AND FAILURE THEN THEY AIM EVEN HIGHER OUTLINING A STRATEGY FOR WESTERN COMPUTER COMPANIES TO PREVAIL IN WHAT THEY PREDICT WILL BE A TECHNOLOGY WAR WITH JAPAN AS A RESULT WHILE IBM'S TROUBLES PERMEATE THE TEXT AN ACTUAL RECOUNTING OF THE COMPANY'S MISSTEPS IS BUT THE FIRST OF THREE SECTIONS IN THIS BOOK THAT LEAVES READERS TO SLOG THROUGH TWO HEFTY DISCUSSION SECTIONS WHICH WILL INTEREST ONLY COMPUTERINDUSTRY INSIDERS AND THE CLINTON ADMINISTRATION'S TECHNOLOGY WONKS BY THEN IT'S CLEAR THAT MESSRS FERGUSON AND MORRIS HAVE FALLEN SOMEWHAT SHORT OF THEIR GOALS WHILE WELL PRESENTED THEIR MAIN ARGUMENT LONGTERM SUCCESS COMES FROM CONTROLLING KEY TECHNICAL STANDARDS IS OLD HAT BY NOW TO ANYONE IN THE COMPUTER INDUSTRY MEANWHILE THEIR SUGGESTED POLICIES FOR AMERICAN VICTORY OVER JAPAN ARE BOTH VAGUE AND INTERVENTIONIST DESPITE SOME CARPING ABOUT THE OOZING BEHEMOTH OF GOVERNMENT THE AUTHORS NEVER BOTHER TO CONVINCE READERS OF THEIR BASIC PREMISE THAT JAPAN MAY SOON THREATEN US DOMINANCE OF COMPUTER STANDARDS THAT'S A BIG OMISSION FOR A BOOK THAT PROPOSES MAJOR CHANGES IN US HIGHTECH POLICY ESPECIALLY SINCE ALL SIGNS NOW INDICATE A ROUT OF JAPAN ON VIRTUALLY EVERY IMPORTANT STANDARD FROM MICROPROCESSORS TO SOFTWARE TO HIGHDEFINITION TELEVISION STILL COMPUTER WARS WORKS WELL ENOUGH AS A CHRONICLE OF THE UPHEAVALS IN COMPUTERS DURING THE 1980S IN PARTICULAR IT'S A SMART ANALYSIS OF HOW THE BIG JAPANESE AND US COMPANIES ALLOWED THEMSELVES TO GET SURPRISED BY WHAT THE AUTHORS CALL THE THIRD FORCE SMALLER NIMBLER COMPANIES WITH ROOTS IN SILICON VALLEY THE AUTHORS BOTH WELLRESPECTED ANALYSTS SHOW PROPER REVERENCE FOR ALL THAT IBM DID RIGHT IN THE PAST BY THE SAME TOKEN THEY SHOW PROPER DISDAIN FOR IBM'S WORST BUREAUCRATIC EXCESSES SUCH AS THE MASSIVE AMOUNT OF TIME MANAGERS WASTED STRIVING TO MASTER IBM'S CULT OF SLIDESHOW PRESENTATIONS AND THEY PLAINLY LAY OUT SUCH SHORTSIGHTED DECISIONS AS THE BYNOWLEGENDARY NEGLECT OF RISC A HOT MICROCHIP TECHNOLOGY IBM INVENTED AND LEFT LANGUISHING FOR A DECADE DESPITE THEIR OVERRELIANCE ON ANONYMOUS SOURCES IT'S CLEAR THE AUTHORS HAVE SPOKEN TO MANY FORMER IBMERS AND DONE A LOT OF HOMEWORK FOR THEIR PAINS THEY COME UP WITH A FEW INTRIGUING ALLEGATIONS FOR INSTANCE THEY SAY TOP IBM EXECUTIVES WERE BULLIED BY BILL GATES NOW AMERICA'S RICHEST MAN BUT THEN AN UPSTART INTO SHELVING SOME IBMDEVELOPED SOFTWARE THAT COULD HAVE RIVALED THE BLOCKBUSTER WINDOWS PRODUCT THAT WOULD BE RELEASED YEARS LATER BY MR GATES'S MICROSOFT CORP ACCORDING TO COMPUTER WARS MR GATES ACHIEVED THIS ASTOUNDING COUP BY THREATENING TO WITHHOLD SOME IMPORTANT SOFTWARE CODE FROM IBM WHAT'S MORE THE BOOK IMPLIES A CYNICAL MR GATES FOLLOWED UP BY HAMSTRINGING A KEY MICROSOFTIBM PROJECT SO THAT WINDOWS WOULD SUCCEED UNCHALLENGED ON BOTH COUNTS THE AUTHORS ASSERT GUTLESS IBMERS WITH LITTLE TECHNICAL KNOWLEDGE WERE OUTWITTED BY MR GATES SINCE COMPUTER WARS DOESN'T CITE ITS SOURCES IT'S HARD TO ASSESS SUCH CLAIMS MICROSOFT DENIES THEM IBM VICE CHAIRMAN JACK KUEHLER A VILLAIN IN THE BOOK HAS CALLED THEM BALONEY UNFORTUNATELY SLOPPINESS ELSEWHERE IN THE BOOKINCLUDING A FLUB ON A WELLKNOWN DATE IN THE VERY FIRST PARAGRAPH DOESN'T PROMOTE TOTAL TRUST BUT ON BETTERKNOWN TOPICS THE AUTHORS ADD SOLID NEW DETAILS THERE'S A NICE ACCOUNT OF A SECRETIVE HUGELY AMBITIOUS IBM MAINFRAMECOMPUTER PROJECT IN THE MID'70S WHICH TURNED INTO A DEMORALIZING FAILURE THE AUTHORS CONVINCINGLY CONCLUDE THAT THIS WAS IBM'S OWN QUIET VIETNAM THE POINT AT WHICH BIG BLUE LOST ITS NERVE AND LAPSED INTO DEFENSIVE HABITS THAT MADE ITS RECENT DOWNFALL INEVITABLE COMPUTER WARS OFTEN BOGS DOWN IN TECHNOBABBLE AND THE BOOK LACKS ANY FEEL FOR THE CHARACTERS INVOLVED HEROES AND VILLAINS ALIKE PERHAPS REFLECTING THEIR PROFESSIONAL BIAS THE AUTHORS SEEM MORE INTERESTED IN STRATEGIES THAN IN PEOPLE READERS WHO DON'T ALREADY HAVE AN INTEREST IN IBM'S TRAVAILS MAY GET LOST THERE'S ALSO LITTLE ON OFFER FOR ANYONE WONDERING ABOUT DEPARTING CEO JOHN AKERS'S ROLE IN SCUTTLING IBM LIKE MOST TOP IBM EXECUTIVES MR AKERS IS GIVEN ONLY A PERIPHERAL ROLE IN THIS BOOK WHOSE TRUE VILLAINS ARE IBM'S INBRED CULTURE AND SINCE THE MID'70S ITS FEAR OF TAKING A CHANCE MR AKERS MAY HAVE BEEN JUST AS MUCH A VICTIM AS ANYONE ELSE MR HOOPER COVERS THE COMPUTER INDUSTRY FOR THE JOURNAL OUT OF NEW YORK 9302220054 930222 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9302220053 930222 WHAT'S NEWS BUSINESS AND FINANCE BENTSEN SAID CLINTON IS WILLING TO CONSIDER DELAYING HIGHER PERSONAL INCOME TAXES TO PROTECT THE ECONOMY BUT SAID HE DOUBTS THAT WILL BE NECESSARY THE PRESIDENT'S PLAN CALLS FOR HIGHER INCOMETAX RATES FOR UPPERINCOME AMERICANS TO BE RETROACTIVE TO JAN 1 BENTSEN SAID SOME DEMOCRATS FEAR THAT COULD INTERFERE WITH CLINTON'S GOAL OF CREATING 500000 JOBS GREENSPAN GENERALLY PRAISED THE PRESIDENT'S DEFICITREDUCTION PLAN BUT WOULDN'T SAY IF THE FED WILL KEEP INTEREST RATES LOW IF IT IS ADOPTED CLINTON ALSO MUST GET CONGRESS TO REDIRECT BILLIONS TOWARD PUBLIC INVESTMENTS THE DOLLAR FELL TO A POSTWORLD WAR II LOW OF 11820 YEN AFTER BENTSEN SAID HE WOULD LIKE TO SEE A STRONGER YEN BUT ANALYSTS SAID THE DOLLAR SHOULD FIRM ONCE CURRENT SPECULATION SUBSIDES THE YIELD DECLINED TO 7 ON THE TREASURY'S 30YEAR BOND THE LOWEST SINCE 1977 STOCKS ROSE WITH THE DOW JONES INDUSTRIALS CLIMBING 1999 POINTS TO 332218 ENERGY STOCKS MOVED UP BUT HEALTHCARE ISSUES LOST MORE GROUND INSURANCE RATES HAVEN'T RISEN IN THE WAKE OF HURRICANE ANDREW CONTRARY TO EXPECTATIONS AND ANALYSTS SAY INCREASES COULD BE A YEAR OFF ELI LILLY IS BEING INVESTIGATED BY A GRAND JURY FOR POSSIBLE CRIMINAL VIOLATIONS OF FEDERAL STANDARDS FOR PROPER MANUFACTURE OF PHARMACEUTICALS GM PLANS TO GIVE PAID JOBHUNTING LEAVES TO WHITECOLLAR WORKERS WHO AGREE TO QUIT AND MERIT RAISES TO OTHERS WHO STAY THE MOVE IS PART OF GM'S PLAN TO CUT ITS WORK FORCE AND STILL BOOST THE MORALE OF REMAINING WORKERS LOTUS WILL BEGIN SELLING AN INNOVATIVE SOFTWARE PROGRAM THAT ANALYSTS SAY COULD SHAKE UP THE SPREADSHEET MARKET THE PROGRAM IMPROV FOR WINDOWS WILL BE PRICED INITIALLY AT 99 A BIG CITICORP SHAREHOLDER SAID HE WOULD SELL UP TO 128 MILLION COMMON SHARES OVER THE NEXT THREE MONTHS THE HOLDER A SAUDI PRINCE COULD REAP OVER 100 MILLION IN PROFITS AND CONVERT A PREFERREDSHARE STAKE TO COMMON DONALD TRUMP REACHED AN ACCORD WITH HIS BANKERS THAT HE HOPES WILL GET HIM OUT OF PERSONAL DEBT WITHIN TWO YEARS AND EFFECTIVELY END BANK SUPERVISION OF HIS BUSINESS ACTIVITIES IBM MOVED CLOSER TO ITS GOAL OF BECOMING A FEDERATION OF INDEPENDENT COMPANIES BY REPORTING RESULTS FOR TWO OF ITS NEW BABY BLUE OPERATIONS DUTCH TRUCK MAKER DAF WILL BE RESCUED UNDER TERMS OF A FINANCIAL BAILOUT REACHED OVER THE WEEKEND THE PLAN CALLS FOR DAF TO BE TRIMMED TO LESS THAN HALF ITS PREVIOUS SIZE CIRCUS CIRCUS ENTERPRISES SAID GLENN W SCHAEFFER RESIGNED AS PRESIDENT FOLLOWING A CLASH WITH THE COMPANY'S CHAIRMAN THE HOTELCASINO OPERATOR'S STOCK FELL 3875 TO 4475 BONDS LEHMAN BROTHERS TREASURY INDEX 493546 UP 585 COMMODITIES OIL 1962 A BARREL UP 20 CENTS DOW JONES FUTURES INDEX 12636 UP 035 SPOT INDEX 12532 UP 002 9302220052 930222 FRESH START BOOTSTRAPPING MAYOR RAISES HOPE OF REVIVAL IN YES PHILADELPHIA RENDELL WINS A WAGE FREEZE PRIVATIZES SOME SERVICES AVERTS RACIAL ANIMOSITY HEAD CHEERLEADER AND BEGGAR BY NEIL BARSKY STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA WHEN MAYOR EDWARD RENDELL MADE A SPECIAL ADDRESS ON TELEVISION LAST MONTH TO ANNOUNCE A PLAN TO CLOSE A BUDGET GAP HE SEEMED TO BREAK ONE OF HIS MOST SACRED PUBLIC VOWS LOOKING STRAIGHT INTO THE CAMERA THE USUALLY JOVIAL DEMOCRAT WIPED A GRIN OFF HIS FACE AND SAID THE CITY FACED A 100 MILLION DEFICIT IN 1994 THEREFORE HE SAID I HAVE REQUESTED FROM CITY COUNCIL INCREASES ON OUR WAGE TAX AND PROPERTY TAX THAT WILL TOTAL 100 MILLION BUT THEN THE MAYOR GRINNED HOLD ON HE SAID DON'T TOUCH THAT DIAL OR THROW ANYTHING AT YOUR TELEVISION SET I WANT YOU TO KNOW THAT WHAT I'VE JUST TOLD YOU ISN'T GOING TO HAPPEN I REPEAT ISN'T GOING TO HAPPEN WE AREN'T GOING TO RAISE TAXES BECAUSE I BELIEVE AS YOU DO THAT RAISING TAXES AGAIN WOULD BE THE STRAW THAT BREAKS THE CAMEL'S BACK THE STUNT IS TYPICAL OF THE ZANY STYLE OF MAYOR RENDELL BUT IT ISN'T FOR LAUGHS THAT THE 49YEAROLD FORMER PROSECUTOR IS EMERGING AS URBAN AMERICA'S HIGH PRIEST OF PRAGMATIC POLITICS IN JUST OVER A YEAR HE HAS USED FISCAL TOUGHNESS AND GOODNATURED BOOSTERISM TO PULL THIS CITY FROM THE BRINK OF FINANCIAL AND SPIRITUAL RUIN NO SMALL FEAT IN AN ERA OF DEEPENING URBAN WOES WORKING CLOSELY WITH THE CITY COUNCIL MR RENDELL HAS PUT TOGETHER A FIVEYEAR FISCAL PLAN THAT WON PRAISE ON WALL STREET ADOPTED A BAREBONES BUDGET THAT INCLUDED 835 MILLION IN SAVINGS FROM MANAGEMENT STREAMLINING AND WON 986 MILLION IN CONCESSIONS FROM LABOR UNIONS AFTER A STRIKE THAT LASTED ONLY 16 HOURS TO BALANCE THE BUDGET MR RENDELL HAS PERSUADED UNIONS TO ACCEPT A 33MONTH WAGE FREEZE SOLD SUCH CITYRUN SERVICES AS A NURSING HOME AND HEALTH CENTER TO PRIVATE OPERATORS AND CLOSED A LIBRARY AND REDUCED HOURS AT OTHERS HE IS EVEN REPLACING 600 TRAFFIC LIGHTS WITH LOWERCOST STOP SIGNS AT THE SAME TIME MR RENDELL HAS BECOME PHILADELPHIA'S CHIEF CHEERLEADER AND AS HE SAYS ITS BIGGEST BEGGAR HE HAS BEEN PIVOTAL IN GETTING THE CITY'S 250 MILLION AVENUE OF THE ARTS COMPLEX UNDER CONSTRUCTION BY GETTING 20 MILLION FROM LOCAL PHILANTHROPIST WALTER ANNENBERG AND 606 MILLION FROM THE STATE THAT PROJECT A COMPLEX OF THEATERS AND CONCERT HALLS ALONG WITH A SOONTOOPEN 500 MILLION CONVENTION CENTER IS GIVING PHILADELPHIA A MUCHNEEDED ECONOMIC LIFT BUT WHAT DISTINGUISHES MAYOR RENDELL'S APPROACH FROM THOSE OF MAYORS OF MANY OTHER TROUBLED CITIES IS HIS EAGERNESS TO BREAK THE TRADITIONAL BOUNDS OF GOVERNING WITH NEW AND MORE EFFICIENT WAYS OF DELIVERING SERVICES MR RENDELL IS EMBLEMATIC OF A NEW WAVE OF BIGCITY MAYORS WHO REFUSE TO BLAME WASHINGTON FOR ALL OF THE NATION'S URBAN ILLS CRUMBLING INFRASTRUCTURE MULTIPLYING SOCIAL PROBLEMS AND THE LOSS OF WHITECOLLAR AND MANUFACTURING JOBS UNLIKE BOSTON MAYOR RAYMOND FLYNN OR NEW YORK'S DAVID DINKINS MR RENDELL REFRAINED FROM HANDING BILL CLINTON A LAUNDRY LIST OF SUGGESTED URBAN INITIATIVES THE MORNING AFTER ELECTION DAY AN EARLY CLINTON SUPPORTER HE WAS CONSPICUOUSLY ABSENT RECENTLY WHEN THE US CONFERENCE OF MAYORS GAVE THE ADMINISTRATION A 27 BILLION WISH LIST A LOT OF MY FELLOW MAYORS HAVE THE MISTAKEN IDEA THAT BILL CLINTON WILL COME IN AND GIVE US A CHECK SAYS MR RENDELL BEFORE MAJOR CITIES CAN GO KNOCKING ON WASHINGTON'S DOOR FOR FEDERAL AID HE SAYS THEY MUST GET THEIR OWN HOUSES IN ORDER DID 12 YEARS OF REAGANBUSH EXACERBATE THE PROBLEM YES SAYS MR RENDELL BUT HE ADDS OUR PROBLEMS COME FROM A QUARTERCENTURY OF MISMANAGEMENT MR RENDELL HAS WORKED TO PREEMPT THE KIND OF RACIAL ANTAGONISMS THAT TEAR AT SO MANY OTHER CITIES FORGING AN ALLIANCE WITH THE POWERFUL CITY COUNCIL PRESIDENT JOHN STREET WHO IS BLACK WITH RENDELL AND STREET WORKING HAND IN HAND THE RACE CARD HAS BEEN ALMOST TOTALLY REMOVED FROM THE PUBLIC DEBATE SAYS THEODORE HERSHBERG A PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA AND FORMER ADVISER TO WILSON GOODE THE CITY'S FIRST BLACK MAYOR IN WHAT MAY BE A GENERATIONAL SHIFT SHADES OF MR RENDELL'S APPROACH TO CITY MANAGEMENT CAN ALSO BE SEEN IN THE RELATIVELY YOUNG ADMINISTRATIONS IN SOME OTHER AMERICAN CITIES BREAKING WITH PAST IDEOLOGY THESE NEWER MAYORS SEE A LINK BETWEEN LOWERING THE COST OF GOVERNMENT AND INCREASING GOVERNMENT'S ABILITY TO DELIVER SERVICES IN CLEVELAND MAYOR MICHAEL WHITE SAYS WINNING CONCESSIONS FROM LABOR UNIONS ENABLED HIM TO BEEF UP SERVICES THIS YEAR CHICAGO MAYOR RICHARD M DALEY AND INDIANAPOLIS MAYOR STEPHEN GOLDSMITH HAVE INTRODUCED A RASH OF PRIVATIZATION INITIATIVES AIMED AT MAKING GOVERNMENT RUN MORE SMOOTHLY OTHER MAYORS ARE ALREADY FEELING THE HEAT OF COMPARISON AFTER NEW YORK'S MR DINKINS NEGOTIATED CONTRACT RAISES WITH THE CITY'S UNIONS WITHOUT GETTING PRODUCTIVITY GAINS IN RETURN A NEW YORK NEWSDAY EDITORIAL CHIDED RENDELL SHOWED HOW A MAYOR CAN BUILD A MANDATE FOR CHANGE AND USE POLITICAL MUSCLE TO DELIVER IT A NATURAL POLITICIAN MR RENDELL LOVES TO SCHMOOZE AND ISN'T AFRAID TO MAKE HIMSELF LOOK SILLY IN THE LINE OF DUTY THE LINEBACKERSIZED MAYOR DONNING BOXER TRUNKS HAS LEAPT CANNONBALLSTYLE INTO A MUNICIPAL SWIMMING POOL TO MARK ITS OPENING AND DROPPED TO HIS HANDS AND KNEES IN A CITY HALL RESTROOM TO HELP CLEAN UP THE RUNDOWN BUILDING HE HAD A CAMEO ROLE AS A MAYOR IN DIRECTOR JONATHAN DEMME'S COMING MOVIE PHILADELPHIA HIS CRITICS CHARGE MR RENDELL LACKS A VISION FOR THE CITY BEYOND AUSTERITY THERE IS A SERIOUS PROBLEM IN A CITY WHEN THE PRIMARY CONCERN IS JUST THE BOTTOMLINE SAYS THOMAS PAINE CRONIN PRESIDENT OF THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES DISTRICT COUNCIL 47 WHICH REPRESENTS MOST OF THE CITY'S WHITECOLLAR EMPLOYEES YOU NEED A STRATEGY WHETHER IT'S HOMELESSNESS OR DRUG ABUSE OR AIDS OR PUBLIC HEALTH WHEN IT COMES TO THOSE ISSUES I DON'T THINK HE'S SETTING THE WORLD ON FIRE MR RENDELL HAS HAD AN EASY ACT TO FOLLOW HIS PREDECESSOR MR GOODE CAME TO OFFICE IN 1984 TOUTED AS A MANAGER WHO COULD GET THINGS DONE BUT WOUND UP BICKERING ENDLESSLY WITH THE CITY COUNCIL WHILE REFORMS OFTEN DIED ON THE VINE HE LEFT OFFICE EIGHT YEARS LATER AFTER REACHING HIS TWOTERM LIMIT WITH THE CITY'S POLITICAL SYSTEM IN GRIDLOCK BY THEN AFTER A QUARTERCENTURY OF DECLINE PHILADELPHIA HAD BECOME THE POSTER CHILD FOR AILING NORTHEAST CITIES IN THE PAST 10 YEARS IT HAS HAD A NET LOSS OF NEARLY 44000 JOBS WHEN MAYOR RENDELL TOOK OFFICE IN JANUARY 1992 CITY WORKERS COULDN'T BE SURE THEIR NEXT PAYCHECK WOULD CLEAR AT ONE POINT THE CITY HAD TO DELAY PAYMENTS TO ITS PENSION FUND FOSTER PARENTS WEREN'T PAID FOR KEEPING CHILDREN MUNICIPALBOND INVESTORS WERE REQUIRING 27 EFFECTIVE RETURNS TO BUY THE CITY'S BONDS AND AFTER 19 TAX INCREASES IN A DOZEN YEARS RESIDENTS FELT THEY WERE BEING TAXED TO THE BONE THEY LIVE WITH THE HIGHEST TAX BURDEN ON THE EAST COAST NOT UNTIL A STATEFORMED FISCAL OVERSIGHT BOARD THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY SOLD 475 MILLION IN BONDS FOR THE CITY LAST YEAR DID PHILADELPHIA WIN SOME BREATHING ROOM NOW THE AUTHORITY IS CHIEF WATCHDOG OVER THE CITY'S ADHERENCE TO ITS FIVEYEAR PLAN AND UNDER CERTAIN CONDITIONS IT CAN WITHHOLD FUNDING PHILADELPHIA IS STILL NOT OUT OF THE WOODS IN JANUARY SIX MONTHS INTO ITS FISCAL YEAR ITS BUDGET WAS RUNNING 57 MILLION IN THE RED REQUIRING FURTHER CUTS AS PART OF THE PARING DOWN PROCESS THE CITY WILL PRIVATIZE MORE THAN 10 SERVICES INCLUDING THE NURSING HOME AND HEALTH CENTER FOR A SAVINGS OF ABOUT 19 MILLION A YEAR TO REGAIN THE FAITH OF BOND INVESTORS ANALYSTS SAY THE CITY MUST SHOW YEAR AFTER YEAR THAT IT HAS BROKEN FROM PAST PRACTICES OF SPENDING MORE THAN IT TAKES IN THEY HAVE MADE PROGRESS BUT THEY STILL HAVE TO GET A TRACK RECORD FOR OPERATING WITHOUT DEFICITS SAYS RICHARD P LARKIN AN OFFICIAL AT STANDARD & POOR'S CORP S&P RAISED ITS RATING OF THE CITY'S BONDS LAST SUMMER TO B FROM CCC IT'S STILL BELOW INVESTMENT GRADE HOWEVER MR RENDELL'S BELTTIGHTENING HAS HAD ITS SOCIAL COSTS WAITS FOR NONEMERGENCY CARE AT CITY HEALTH CENTERS NOW CAN BE TWO MONTHS INSTEAD OF TWO OR THREE WEEKS TRASH PICKUPS ARE OFTEN A DAY OR TWO LATE AID TO ART MUSEUMS HAS BEEN CUT ALONG WITH FUNDS FOR LIBRARIES AFTER A FAILED BID FOR GOVERNOR IN 1986 HE CHALLENGED MAYOR GOODE IN THE DEMOCRATIC PRIMARY IN 1987 ALIENATING SOME BLACK VOTERS HIS BACKTOBACK DEFEATS FRIENDS SAY SEEMED TO BE MORE THOSE OF A RESTLESS POLITICIAN THAN A MAN ON A MISSION ED WASN'T READY TO RUN IN 1987 SAYS DAVID COHEN THE MAYOR'S CHIEF OF STAFF WHO WAS HIS PRESS SECRETARY IN 1987 BUT ONCE HE LOST MR RENDELL SET OUT TO GET READY FOR ANOTHER RUN HE EXPLORED HOW OTHER CITIES AND STATES WERE CHANGING THE WAYS THEY DELIVERED SERVICES HE MET WITH OFFICIALS IN PHOENIX AND LOS ANGELES TO DISCUSS INITIATIVES UNDER WAY THERE TO MAKE CITIES RUN MORE EFFICIENTLY WHEN HE LEARNED THAT KAREN NOWAK WHO HAD BEEN RESPONSIBLE FOR OHIO'S EFFECTIVE MANAGEMENT AND PRODUCTIVITY PROGRAM HAD MOVED TO THE PHILADELPHIA AREA HE RECRUITED HER FOR HIS CAMPAIGN BY 1991 HE HAD 10 FILE DRAWERS OF DOCUMENTS ON THESE TYPES OF MANAGEMENT AND PRODUCTIVITY ISSUES SAYS MR COHEN FOR FOUR YEARS HE LITERALLY STUDIED HOW TO BE MAYOR A BIG FACTOR IN THE MAYOR'S SUCCESS HAS BEEN HIS CLOSE RELATIONSHIP WITH MR STREET A FORMER HOUSING ACTIVIST AND A BUDGET EXPERT WHO IS ALSO 49 THEIR ALLIANCE COMES AS A SURPRISE TO MANY WHO RECALL THE FEUDS BETWEEN THIS TOWN'S PAST MAYORS AND CITY COUNCILS AND THE ILL FEELINGS OF SOME BLACKS TOWARD MR RENDELL FOLLOWING HIS CHALLENGE OF MAYOR GOODE BUT MESSRS RENDELL AND STREET HAVE HELPED KEEP DEMAGOGUERY OUT OF THE DEBATE OVER PHILADELPHIA'S FUTURE THEY MEET EACH TUESDAY MORNING AT 730 TO KEEP EACH OTHER INFORMED WHEN THE LATEST ROUND OF BUDGET CUTS WAS PREPARED MR STREET WHOSE SUPPORT FOR THE MAYOR'S PLAN WAS CRUCIAL WAS THE ONLY ONE OUTSIDE OF THE MAYOR'S OFFICE TO GET AN ADVANCE PEEK AT A RECENT CAMPAIGN FUNDRAISER FOR MR STREET THIS SPIRIT OF COOPERATION WAS ON FULL DISPLAY WHEN THE MAYOR GRABBED A MICROPHONE AND CROONED TO HIS ALLY YOU ARE SO BEAUTIFUL TO ME AND THEN PLANTED A KISS ON HIS CHEEK ASKED ABOUT HIS EARLY YEARS IN POLITICS MR STREET POINTS TO A BLACK AND WHITE PHOTO ON HIS OFFICE WALL SHOWING HIM SEPARATED BY AN IRON GATE FROM A POLICE OFFICER AND CITY COUNCIL CHAMBERS LAST MONTH IT WAS MR STREET WHO BANGED THE GAVEL DOWN ON DEMONSTRATORS WHO HAD COME TO CITY COUNCIL CHAMBERS TO PROTEST THE CUTBACKS WE'VE TOLD OUR PEOPLE THAT WHILE THERE MIGHT BE SOME PAIN NOT FIXING THE PROBLEM WILL RUIN THE ECONOMY AND THE PEOPLE WHO WILL BE HURT ARE THOSE WHO HAVE THE FEWEST OPTIONS HE SAYS TO ILLUSTRATE HIS POINT MR STREET SAYS HE DID A SURVEY OF HIS NORTH CENTRAL PHILADELPHIA DISTRICT WHICH INCLUDES SOME OF THE CITY'S POOREST AND MOST AFFLUENT NEIGHBORHOODS HE SAYS HE FOUND THAT CERTAIN INDIVIDUALS IN HIS DISTRICT PAID AS MUCH IN TAXES AS ALL THE PEOPLE IN SOME ENTIRE SQUARE BLOCKS WE NEED UPPERINCOME PEOPLE AND WE NEED BUSINESSES HE SAYS WE HAVE TO REMEMBER THEY'RE NOT CAPTIVE POPULATIONS MR RENDELL HAS ALSO WON THE GRUDGING COOPERATION OF THE CITY'S UNIONS AFTER A SUMMER OF BITTER NEGOTIATION THE UNIONS AGREED LAST FALL TO NEW CONTRACTS THAT WILL SAVE THE CITY 374 MILLION OVER FOUR YEARS THE AGREEMENTS INCLUDE A 33MONTH WAGE FREEZE CUTS IN PAID HOLIDAYS TO 10 FROM 14 A REDUCTION IN SICK LEAVE FOR NEW EMPLOYEES TO 15 DAYS FROM 20 AND INCREASED CONTRACTING OUT OF CITY SERVICES THE CITY ALSO GAINED CONTROL OVER THE ADMINISTRATION OF UNION HEALTH PLANS A SAVING OF ABOUT 60 MILLION A YEAR THE NEW CONTRACTS LEFT SOME CITY WORKERS BITTER WE WERE THE SCAPEGOATS COMPLAINS JEFF BROWN A STAFFER AT DISTRICT COUNCIL 33 THE CITY'S BLUECOLLAR UNION WE WERE DEMEANED BELITTLED AND DENIGRATED HE'S PUSHED BACK 30 YEARS OF HISTORY ANTICIPATING STIFF RESISTANCE MAYOR RENDELL HAS USED THE MEDIA TO WIN PUBLIC SUPPORT HE PRECEDED HIS SHOWDOWN WITH THE UNIONS WITH A CAMPAIGN EXPOSING SOME OF THE MORE GENEROUS ARRANGEMENTS HE PUBLICIZED STUDIES FROM THE BUSINESSFUNDED PENNSYLVANIA ECONOMY LEAGUE THAT SHOWED THE CITY'S LABOR COSTS EXCEEDING THOSE OF MOST CITIES WHEN CITY WORKERS WALKED OFF THEIR JOBS IN OCTOBER THE UNION QUICKLY CALLED OFF THE STRIKE BECAUSE OF A PUBLIC BACKLASH TO MR RENDELL ALMOST NO AMOUNT OF SAVINGS IS TOO PUNY TO PURSUE TO CONVINCE PEOPLE THE CITY COULD SAFELY REPLACE 600 TRAFFIC LIGHTS WITH STOP SIGNS THE MAYOR NOTED THAT PHILADELPHIA HAD THE HIGHEST NUMBER OF STOPLIGHTS PER CAPITA IN THE NATION AND THE FEWEST CARS PER CAPITA WE'RE ON THE VERGE OF DOING TERRIFIC THINGS IF WE DON'T SCREW IT UP HE SAYS 9302220051 930222 FOREIGN EXCHANGE DOLLAR SAGS TO LOW AS BENTSEN URGES A STRONGER YEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR PUSHED DOWN BY A COMMENT FROM TREASURY SECRETARY LLOYD BENTSEN SANK TO A POSTWORLD WAR II LOW AGAINST THE YEN FRIDAY BUT ANALYSTS SAY IT SHOULD FIRM ONCE THE CURRENT ROUND OF SPECULATION SUBSIDES THE JAPANESE CURRENCY HAS SOARED FOR TWO WEEKS AS TRADERS SPECULATE THAT GOVERNMENTS FAVOR A STRONG YEN AS A MEANS OF NARROWING JAPAN'S TRADE SURPLUS ON FRIDAY MR BENTSEN GAVE THE FIRST OFFICIAL CONFIRMATION FROM US OFFICIALS THAT APPRECIATION OF THE JAPANESE CURRENCY IS DEEMED DESIRABLE I'D LIKE TO SEE A STRONGER YEN HE SAID IN RESPONSE TO A QUESTION DURING AN APPEARANCE AT THE NATIONAL PRESS CLUB IN WASHINGTON THE DOLLAR FELL FOLLOWING HIS STATEMENT SETTING A RECORD LOW OF 11820 YEN BELOW THE PREVIOUS LOW OF 11860 YEN REACHED LAST SEPTEMBER LATE FRIDAY AFTERNOON IN NEW YORK THE DOLLAR WAS TRADING AT 11822 YEN DOWN FROM 11925 YEN THURSDAY THE LATEFRIDAY LEVEL LEFT THE DOLLAR DOWN 5 AGAINST THE YEN SINCE THE BEGINNING OF FEBRUARY AND DOWN FROM 12065 YEN AT THE END OF THE PREVIOUS WEEK THE DOLLAR WAS QUOTED AT 16378 MARKS LATE FRIDAY UP FROM 16325 MARKS ON THURSDAY BUT DOWN FROM 16585 MARKS THE WEEK EARLIER AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11717 YEN AND AT 16367 MARKS BARRING JAPANESE INTERVENTION TO SLOW THE YEN'S RISE SPECULATORS MAY TRY TO DRIVE THE DOLLAR AS LOW AS 115 YEN BY THE END OF THIS WEEK TRADERS SAY ANALYSTS DON'T EXPECT THE YEN TO GIVE BACK ITS RECENT GAINS SOON THE JAPANESE FISCAL YEAR ENDS MARCH 31 AND JAPANESE COMPANIES ARE LIKELY TO BRING YEN HOME TO SHORE UP THEIR BALANCE SHEETS TOWARD THE END OF A FISCAL YEAR JAPANESE TEND TO BE RELUCTANT TO SHIP FUNDS OUT SAYS ERIC NICKERSON FOREIGNEXCHANGE ECONOMIST AT BANK OF AMERICA AT THE SAME TIME THE YEN IS LIKELY TO BENEFIT FROM INVESTOR DEMAND FOR JAPANESE DEBT SECURITIES OF INTERMEDIATE DURATION SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORKBASED ECONOMICSCONSULTING FIRM YIELDS ON JAPANESE NOTES WITH MATURITIES RANGING FROM TWO TO NINE YEARS STILL HAVEN'T FALLEN AS FAR AS YIELDS ON SHORTERTERM AND LONGERTERM DEBT IN RESPONSE TO THE LATEST CUT IN JAPAN'S DISCOUNT RATE MR WEINBERG SAYS THE BANK OF JAPAN CUT THE DISCOUNT RATE TO 25 FROM 325 ON FEB 4 WITH JAPANESE BANKS' LONGTERM PRIME RATE LINKED TO THE FIVEYEAR NOTE MR WEINBERG EXPECTS GOVERNMENT PRESSURE TO NUDGE RATES LOWER IN THE INTERMEDIATE SECTOR THAT SHOULD PRODUCE CAPITAL GAINS FOR NOTEHOLDERS IT WILL SUPPORT THE YEN BECAUSE IT DRAWS CAPITAL INTO THE JAPANESE MARKET MR WEINBERG SAYS IT'S A GOOD REASON TO KEEP MONEY THERE WEAKER YEN SEEN BY SOME ULTIMATELY HOWEVER JAPAN'S WEAK ECONOMY AND LOW INTEREST RATES ARE EXPECTED TO DISCOURAGE INVESTORS FROM BUYING YEN OVER THE LONGER TERM ALTHOUGH REMARKS SUCH AS MR BENTSEN'S HAVE SPARKED SHARP GAINS ECONOMIC FUNDAMENTALS STILL POINT TO A WEAKER YEN TRADERS AND ANALYSTS SAY JAPANESE POLITICIANS HAD BEEN TRYING TO TALK THE YEN UP IN ORDER TO DEFLECT PRESSURE FOR TRADE PROTECTIONISM SAYS CHESTER RUBEN SENIOR FOREIGNEXCHANGE TRADER AT CONTINENTAL BANK IN CHICAGO BUT POLITICIANS CAN'T CHANGE THE FUNDAMENTALS TO KEEP THE YEN STRONG JAPAN WOULD HAVE TO RAISE INTEREST RATES TO MAKE YENDENOMINATED SECURITIES MORE ATTRACTIVE MR RUBEN SAYS THAT'S IMPOSSIBLE AS LONG AS JAPAN'S ECONOMY IS MIRED IN RECESSION ANALYSTS SAY MOREOVER SOME ECONOMISTS SAY THE ARGUMENT THAT A STRONGER YEN WOULD REDUCE JAPAN'S TRADE SURPLUS SIGNIFICANTLY IS FLAWED WHILE A STRONGER YEN WOULD MAKE JAPANESE EXPORTS MORE EXPENSIVE AND THEREFORE LESS COMPETITIVE EXPORTS ARE ONLY HALF OF THE TRADE EQUATION A STRONGER YEN WON'T BE PARTICULARLY HELPFUL FOR CORRECTING THE TRADE BALANCE GIVEN THAT THE MAJOR PROBLEM IS WEAK IMPORTS NOT SURGING EXPORTS SAYS MR NICKERSON JAPAN ALSO MAY NOT BE WILLING TO SACRIFICE ITS EXPORT ADVANTAGE INDEFINITELY TO FORESTALL TRADE TENSIONS A STRONGER YEN IS NOW DETRIMENTAL TO CORPORATE EARNINGS MR NICKERSON SAYS ADDING IT RAISES THE RISK OF A WEAKER STOCK MARKET REMARKS FRIDAY BY JAPANESE OFFICIALS HINTED AT DISCOMFORT WITH THE SPEED OF THE YEN'S GAINS YOSHIRO MORI HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THAT RECENT CURRENCY MOVEMENTS HAD BEEN TOO FAST HAJIME FUNADA HEAD OF THE ECONOMIC PLANNING AGENCY SAID THAT IF THE YEN CONTINUED TO SURGE THE MOVE WOULD BE CONSIDERED TOO RAPID THE YEN ALSO MAY BE AT UNSUSTAINABLY HIGH LEVELS AGAINST THE MARK GIVEN THE WIDE GAP BETWEEN JAPANESE AND GERMAN INTEREST RATES SAYS MR NICKERSON OF BANK OF AMERICA LATE FRIDAY THE MARK TRADED AT 7240 YEN DOWN FROM 7275 YEN AT THE END OF THE PREVIOUS WEEK IT DOESN'T MAKE MUCH SENSE TO SEE A SIGNIFICANT STRENGTHENING OF THE YEN AGAINST THE MARK BETWEEN NOW AND THE TIME GERMANY CUTS RATES HE SAYS THE LAST TIME THE MARK TRADED AROUND 73 YEN WAS IN SEPTEMBER 1989 HE NOTES WE HAVEN'T SEEN THESE KINDS OF LEVELS SINCE THE LATE '80S WHEN JAPAN'S ECONOMY WAS BOOMING HE SAYS 9302220050 930222 WHAT'S NEWS WORLDWIDE SYRIA GAVE STRONG SUPPORT TO THE US DRIVE TO REOPEN MIDEAST PEACE TALKS SECRETARY OF STATE CHRISTOPHER WHO MET IN DAMASCUS WITH ASSAD SAID THE SYRIAN PRESIDENT VOICED AN INDEPENDENT DESIRE TO MOVE FORWARD WITH THE PEACE PROCESS THE US FOR ITS PART PLEDGED TO STEP IN TO HELP SHAPE A SETTLEMENT ONCE THE NEGOTIATIONS RESUME WE INTEND IF ANYTHING TO BE MORE ACTIVE THAN THE US HAS BEEN IN THE PAST CHRISTOPHER SAID TAKING A STANCE LONG URGED BY THE ARABS SYRIA'S FOREIGN MINISTER SAID THAT ALTHOUGH ISRAEL'S DEPORTATION OF PALESTINIANS HAS BECOME LIKE A THORN HINDERING THE RESUMPTION OF MIDEAST TALKS THE PEACE PROCESS IS A BROADER AND MORE IMPORTANT ISSUE FOR THE REGION A UN AID CONVOY REACHED THE BESIEGED MUSLIM TOWN OF ZEPA IN EASTERN BOSNIA BUT THERE STILL WAS NO AID DISTRIBUTION IN THE CAPITAL CITY OF SARAJEVO THE UN HIGH COMMISSIONER FOR REFUGEES SAID HER AGENCY WAS RESUMING RELIEF OPERATIONS IN BOSNIA AFTER RECEIVING ASSURANCES FROM WARRING FACTIONS THAT THEY WON'T BLOCK CONVOYS THE WHITE HOUSE INTENDS TO ANNOUNCE THIS WEEK THAT IT WILL BEGIN AIRDROPPING HUMANITARIAN SUPPLIES INTO EASTERN BOSNIA WASHINGTON IS ENCOURAGING ITS EUROPEAN ALLIES TO PARTICIPATE IN THE EFFORT A SENIOR US OFFICIAL SAID PRESIDENT CLINTON PLANS TO OUTLINE A NEW TECHNOLOGY POLICY DURING A SPEECH TODAY IN CALIFORNIA A KEY THEME WILL BE THE NEED TO REDIRECT SOME OF THE MONEY SPENT ON THE DEVELOPMENT OF MILITARY TECHNOLOGY INTO CIVILIAN USE ACCORDING TO AIDES HE ALSO IS LIKELY TO STRESS THE NEED FOR PARTNERSHIPS BETWEEN GOVERNMENT AND PRIVATE INDUSTRY THE US POSTAL SERVICE IS FACING A LIKELY REDUCTION IN ITS FUNDING FROM CONGRESS A MOVE THAT MAY FORCE THE AGENCY TO BOOST MAILING RATES FOR NONPROFIT ORGANIZATIONS STAFFERS HAVE BEGUN PLANNING OPTIONS FOR HOW TO MAKE UP AN EXPECTED 1 BILLION SHORTFALL FOR THE YEAR THAT ENDS ON SEPT 30 PRIME MINISTER AMATO NAMED REPLACEMENTS FOR ITALY'S OUTGOING MINISTERS OF HEALTH AND FINANCE IN A BID TO SHORE UP HIS EIGHTMONTHOLD GOVERNMENT WHICH HAS BEEN DISCREDITED BY A WIDENING CORRUPTION SCANDAL BOTH MINISTERS RESIGNED ON FRIDAY AMATO ALSO SHUFFLED OTHER CABINET POSTS THE UN ANNOUNCED A SURPRISE WEAPONS INSPECTION VISIT TO IRAQ AND SAID ARMS EXPERTS WOULD FLY INTO BAGHDAD EARLY TODAY THE TEAM LEADER WOULDN'T DISCLOSE THE OBJECTIVES OF THE VISIT ANOTHER UN TEAM HAS EXTENDED ITS STAY IN THE IRAQI CAPITAL AFTER TELLING REPORTERS THAT IT HAD GATHERED NEW DATA ON IRAQ'S BALLISTIC MISSILE PROGRAM ISRAELI RELIGIOUS AND LAY LEADERS ELECTED TWO NEW CHIEF RABBIS AFTER A CAMPAIGN MARRED BY ALLEGATIONS OF WOMANIZING BRIBERY AND ELECTRONIC SNOOPING YISRAEL LAU WAS ELECTED CHIEF RABBI OF THE EUROPEANDESCENDED ASHKENAZI COMMUNITY OF JEWS ELIAHU BAKSHIDORON WILL HEAD THE MIDDLE EASTDESCENDED SEPHARDI COMMUNITY A UN REPORT ESTIMATES THAT THE COST OF PROJECTS TO START REBUILDING SOMALIA WILL BE ABOUT 250 MILLION ACCORDING TO A DRAFT COPY OF THE PROPOSAL UN OFFICIALS ARE TO PRESENT A FINAL VERSION OF THE REPORT TO A CONFERENCE OF DONOR NATIONS NEXT MONTH THE DUTCH FOREIGN MINISTER SUMMONED THE PAPAL NUNCIO IN THE NETHERLANDS TO A MEETING THIS WEEK TO PROTEST THE VATICAN'S ATTACK ON DUTCH EUTHANASIA POLICY PRIME MINISTER LUBBERS SAID FRIDAY THE VATICAN'S COMPARISON OF THE LIBERAL EUTHANASIA LAW TO NAZI EXTERMINATION OF THE MENTALLY AND PHYSICALLY DISABLED ABSOLUTELY WON'T DO BRITAIN'S INTERIOR MINISTER VOWED TO CRACK DOWN ON A JUVENILE CRIME WAVE INVOLVING MURDERS RAPES AND ROBBERIES AND SAID PROPOSALS INCLUDED LOCKING UP PERSISTENT OFFENDERS UNDER THE AGE OF 15 THE KILLING OF A TWOYEAROLD BOY IN LIVERPOOL THIS MONTH HAS SPARKED NATIONAL OUTRAGE TWO 10YEAROLD BOYS HAVE BEEN CHARGED WITH THE MURDER DIED GERHARD GESELL 82 FEDERAL JUDGE WHO PRESIDED OVER THE WATERGATE AND IRANCONTRA CASES FRIDAY IN WASHINGTON OF LIVER CANCER DAVID BAZELON 83 EXFEDERAL APPEALS COURT JUDGE WHO PIONEERED THE USE OF PSYCHIATRY IN THE INSANITY DEFENSE FRIDAY IN WASHINGTON OF PNEUMONIA FERRUCCIO LAMBORGHINI 76 FOUNDER OF THE LUXURY CAR COMPANY BEARING HIS NAME SATURDAY IN PERUGIA ITALY AFTER SUFFERING A HEART ATTACK EARLIER THIS MONTH 9302220049 930222 CREDIT MARKETS MUNIS CAN SEE FURTHER GAINS SAY MANAGERS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S NOT TOO LATE TO JUMP ONTO THE MUNICIPAL BOND BANDWAGON ALTHOUGH THE RIDE OVER THE NEXT THREE MONTHS MAY NOT BE AS EXCITING AS THE PAST THREE MONTHS SINCE ELECTION DAY MANY MONEY MANAGERS AND INVESTORS HAVE BEEN RUSHING INTO MUNICIPAL BONDS IN ANTICIPATION OF HIGHER TAX RATES THE SURGING DEMAND HAS FUELED A MAJOR RALLY IN MUNICIPAL BOND PRICES AND MANY OF THOSE WHO BOUGHT EARLY HAVE REAPED HUGE RETURNS A NEW WAVE OF BUYING SWEPT OVER THE MARKET LAST WEEK AFTER PRESIDENT CLINTON OFFICIALLY PROPOSED CREATING A NEW 36 TAX BRACKET AND RAISING THE RATE FOR THE HIGHESTINCOME AMERICANS TO 396 MUNICIPAL BOND PRICES ROSE EVEN HIGHER AND YIELDS PLUNGED SOME MONEY MANAGERS CLAIM GAINS EXCEEDING 13 POINTS ON A SINGLE BOND PURCHASED AROUND ELECTION TIME OR MORE THAN 130 DOLLARS FOR EACH 1000 OF FACE VALUE IN 15 YEARS OF MANAGING MONEY SAYS JOSEPH DEANE DIRECTOR TAXEXEMPT FIXEDINCOME MANAGEMENT AT SHEARSON LEHMAN ADVISORS A UNIT OF SHEARSON LEHMAN BROTHERS INC THESE ARE THE BEST RETURNS I'VE EVER HAD IN SUCH A SHORT PERIOD BUT DESPITE THE SHARP INCREASE IN MUNICIPAL BOND PRICES HE AND OTHER TAXEXEMPT INVESTMENT PROS ARE LOOKING FOR FURTHER GAINS THE MUNICIPAL BOND MARKET IS STILL EXTREMELY STRONG MR DEANE SAYS WHILE INVESTORS SHOULD EXPECT A MUCH MORE ORDERLY PACE HE SAYS WE HAVE ROOM TO MOVE HIGHER MUNICIPAL BOND YIELDS HAVE DROPPED MORE THAN THREEQUARTERS OF A PERCENTAGE POINT SINCE THE WEEK BEFORE THE ELECTION TO 606 ACCORDING TO AN INDEX OF 25 REVENUE BONDS MATURING IN 30 YEARS COMPILED BY THE BOND BUYER A TRADE PUBLICATION SUCH A STEEP PLUNGE MIGHT NORMALLY AROUSE GREAT CONCERN AMONG INVESTORS THAT THE MARKET HAS GONE TOO FAR TOO FAST NOT THIS TIME THAT'S PARTLY BECAUSE TREASURY YIELDS HAVE DROPPED AS MUCH AS MUNICIPAL YIELDS WITH THE 30YEAR TREASURY BOND FALLING TO 7 ON FRIDAY WHEN MUNICIPAL YIELDS DROP MORE THAN TREASURY YIELDS SAY ANALYSTS IT CAN BE A SIGN THE MARKET IS HEADED FOR A CORRECTION AS HAPPENED LATE LAST SUMMER BUT AS OF LAST WEEK MUNICIPAL BONDS IN THE BOND BUYER'S REVENUE BOND INDEX WERE YIELDING ABOUT 864 OF THE YIELD OF 30YEAR TREASURY BONDS THAT WAS LITTLE CHANGED FROM 872 AROUND ELECTION DAY ANOTHER REASON ANALYSTS AREN'T TOO WORRIED ABOUT THE POSSIBILITY OF A PLUNGE IN PRICES HAS TO DO WITH SUPPLY THE TOTAL ISSUANCE OF LONGTERM MUNICIPAL BONDS IS EXPECTED TO BE MUCH LOWER THIS YEAR THAN LAST YEAR WHEN IT TOPPED 230 BILLION AND REDEMPTIONS OF REFUNDED BONDS ARE EXPECTED TO REACH RECORD LEVELS IN JANUARY ALONE AS MUCH AS 11 BILLION OF MUNICIPAL BONDS WERE CALLED OR REDEEMED BEFORE THEIR SCHEDULED MATURITY AND EVEN MORE BONDS WILL PROBABLY BE CALLED THROUGHOUT THE YEAR WE'RE NOT LOOKING AT 1993 TO BE A BIG VOLUME YEAR SAYS RICHARD CICCARONE DIRECTOR OF FIXED INCOME RESEARCH AT KEMPER SECURITIES INC SO IT'S POSSIBLE THAT DEMAND WILL OUTSTRIP SUPPLY AS THE YEAR GOES ON THE RESULT IS THAT FEWER MUNICIPAL BONDS ARE AVAILABLE JUST AS INVESTORS ARE INTERESTED IN BUYING MORE OF THEM UNDER THE CURRENT TAX LAW SOMEONE IN THE TOP FEDERAL TAX BRACKET OF 31 WOULD HAVE TO FIND A TAXABLE BOND YIELDING 87 TO MATCH THE TAXABLE EQUIVALENT YIELD ON A 6 MUNICIPAL BOND IF MR CLINTON GETS HIS WAY A TOP BRACKET INVESTOR WOULD HAVE TO FIND A TAXABLE BOND YIELDING AT LEAST 99 TO KEEP AS MUCH INCOME AS IS PAID ON A 6 TAXEXEMPT BOND THE TAXABLE EQUIVALENT YIELD WOULD BE EVEN HIGHER FOR INVESTORS LIVING IN HIGHTAX AREAS LIKE NEW YORK CITY OR CALIFORNIA EVEN AT THE CURRENT LOW LEVEL OF INTEREST RATES MANY INVESTORS FIND MUNICIPAL BONDS AND TAXEXEMPT BOND FUNDS ARE AN ATTRACTIVE ALTERNATIVE TO SICKLY YIELDS ON CERTIFICATES OF DEPOSIT JAMES ERICKSON CHIEF INVESTMENT OFFICER OF TAXEXEMPT INVESTMENTS AT PUTNAM CO SAYS INFLOWS OF NEW MONEY TO THE FIRM'S MUNICIPAL BOND FUNDS ARE RUNNING AT DOUBLE THE LEVELS OF LAST YEAR'S FOURTH QUARTER THE STRONG DEMAND FOR TAXEXEMPT BOND FUNDS IN TURN HAS SPARKED FIERCE COMPETITION AMONG THE FUNDS FOR NEW MUNICIPAL BONDS SOME NEW OFFERINGS HAVE RECEIVED 10 TIMES MORE BUYERS THAN NEEDED TO BE COMPLETED SAYS MR ERICKSON INDEED SOME MONEY MANAGERS SAY THE COMPETITION IS SO INTENSE THAT THE TOP MUTUAL FUNDS HAVE BEGUN OFFERING TO BUY ENTIRE MULTIMILLIONDOLLAR ISSUES IN ORDER TO ENSURE THAT THEY RECEIVE ENOUGH TAXEXEMPT BONDS TO FILL THEIR NEEDS SUCH AGGRESSIVE BIDDING WHICH DEALERS CALL ORDER PADDING HAS ALLOWED MANY ISSUERS TO LOWER THE YIELDS OFFERED ON NEW MUNICIPAL BONDS ONE ISSUE THAT STOOD OUT WAS AN OFFERING BY THE STATE OF HAWAII LAST THURSDAY ACCORDING TO DENNIS BOYLE MANAGING DIRECTOR OF NATIONAL UNDERWRITING AT MERRILL LYNCH & CO THE LEAD UNDERWRITER FOR THE OFFERING DEMAND WAS STRONG ENOUGH THAT YIELDS WERE LOWERED 015 PERCENTAGE POINT FOR BONDS MATURING IN 1996 TO 010 PERCENTAGE POINT FOR BONDS MATURING IN 2009 A HUGE DROP BY MUNICIPAL BOND STANDARDS AT THE SAME TIME THE SIZE OF THE OFFERING OF GENERAL OBLIGATION REFUNDING BONDS WAS INCREASED FROM 350 MILLION TO 472 MILLION THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP WHILE CRITICS MAY SAY NOT TO BUY MUNICIPALS BECAUSE THE PRICES HAVE ALREADY BEEN ADJUSTED TO HIGHER TAX RATES SAYS MR CICCARONE OF KEMPER SECURITIES I WOULD ARGUE THAT THE MARKET HAS NOT BEEN FULLY ADJUSTED TO THE HIGHER TAX RATES MOREOVER OVER THE NEXT COUPLE OF YEARS THE MUNICIPAL BOND MARKET IS LIKELY TO BENEFIT FROM SEVERAL OTHER PROPOSALS THAT MR CLINTON MADE LAST WEEK FOR EXAMPLE HE PROPOSED ALLOWING TAXEXEMPT BONDS TO BE ISSUED FOR HIGHSPEED RAIL PROJECTS WITHOUT REGARD TO THE STATEBYSTATE VOLUME CAPS THAT CONSTRAIN THE ISSUANCE OF SOCALLED PRIVATE ACTIVITY BONDS THIS PROPOSAL COULD SPUR A HUGE VOLUME OF HIGHSPEED RAIL BONDS OVER TIME THE PRESIDENT ALSO PROPOSED THE ESTABLISHMENT OF AT LEAST 50 ENTERPRISE ZONES IN WHICH BONDS WOULD ENJOY SPECIAL TAX BREAKS THESE BONDS WOULD BE ELIGIBLE FOR A FULL INTEREST DEDUCTION BY BANKS SUCH DEDUCTIONS WERE LIMITED BY THE 1986 TAX REFORM ACT THOSE WHO STARTED BUYING CERTAIN KINDS OF MUNICIPAL BONDS AROUND ELECTION TIME LIKE MR DEANE OF SHEARSON LEHMAN HAVE REAPED HUGE RETURNS HIGHQUALITY BONDS SOLD AT A DISCOUNT TO FACE VALUE WERE THE BIGGEST WINNERS IN THE PAST THREE MONTHS SAYS MR DEANE AND MAY BE ONE OF THE BETTER VALUES IN THE MONTHS AHEAD MR DEANE CITED SAN FRANCISCO SEWER AUTHORITY BONDS AS AN EXAMPLE HE SAYS THAT HE PURCHASED 10 MILLION OF THESE 55 COUPON BONDS MATURING IN 2015 AT 85 1/4 TO YIELD 680 SHORTLY BEFORE THE ELECTION AS OF LATE LAST WEEK THOSE SAME BONDS WERE YIELDING 560 AT A PRICE OF 98 3/4 A GAIN OF 135 POINTS OR 135 FOR A BOND WITH 1000 FACE VALUE WE'VE PROBABLY MADE A COUPLE HUNDRED MILLION DOLLARS IN THE LAST THREE MONTHS SAYS MR DEANE OUT OF A TOTAL MUNICIPAL BOND PORTFOLIO OF NEARLY 2 BILLION IN THE SHEARSON MANAGED MUNICIPALS FUND ACCORDING TO LIPPER ANALYTICAL SERVICES INC THE FUND HAD A TOTAL RETURN OF 703 IN THE THREE MONTHS ENDING IN JANUARY EVEN BEFORE THE CURRENT RUNUP IN MUNICIPAL BOND PRICES THAT MADE IT THE SECONDBEST PERFORMER OF ALL GENERAL MUNICIPAL BOND FUNDS FOR THE PERIOD AFTER SCHWAB NATIONAL TAXFREE FUND WITH A RETURN OF 761 BUT AS LONGTERM RATES HAVE PLUNGED MR DEANE SAYS THAT PERHAPS INVESTORS OUGHT TO PLAY IT SAFER WITH BONDS WITH INTERMEDIATE MATURITIES OF 15 TO 20 YEARS RATHER THAN THOSE MATURING IN 30YEARS OR MORE ACCORDING TO MR DEANE MR CLINTON'S ECONOMIC PLAN COULD STILL BE PICKED APART BY CONGRESS WHICH WOULD WORRY INVESTORS THAT THE FEDERAL BUDGET DEFICIT WILL NOT BE REDUCED AND MIGHT PUSH LONGTERM INTEREST RATES BACK UP AGAIN MR DEANE ALSO ADVISES INVESTORS TO AVOID BONDS THAT ARE SOLD AT A PREMIUM TO THE FACE VALUE AND MANY HOUSING BONDS BOTH TYPES HAVEN'T FARED AS WELL DURING THE RALLY HOUSING BONDS ARE ISSUED BY MUNICIPALITIES TO FINANCE CONSTRUCTION PROJECTS SUCH AS LOWINCOME HOUSING SINCE THEY ARE BACKED BY MORTGAGES WHICH CAN BE PREPAID WHEN INTEREST RATES DIP SUCH BONDS TEND TO UNDERPERFORM THE REST OF THE MARKET DURING A RALLY JOHN B SCHWARTZMAN DIRECTOR OF MUNICIPAL BOND RESEARCH AT BANK OF NEW YORK SAYS THAT HIS BANK IS ADVISING ITS PORTFOLIO MANAGERS NOT TO HESITATE TO BUY HIGHQUALITY BONDS WE ARE TELLING THEM WHEN YOU SEE A GOOD CREDIT DON'T WAIT TO BUY IT' BECAUSE SOMEONE ELSE WILL VERY SOON BECAUSE THE INTEREST RATE GAPS BETWEEN HIGHRATED AND RISKIER LOWERRATED MUNICIPAL BONDS ARE SO NARROW SAYS MR SCHWARTZMAN IT DOESN'T PAY TO TAKE ON EXTRA RISK FOR MANY LOWERRATED BONDS THE INTEREST RATE GAP BETWEEN THE AVERAGE TRIPLEARATED AND SINGLEARATED 10YEAR GENERAL OBLIGATION BONDS HAS NARROWED TO 030 PERCENTAGE POINT FROM 055 PERCENTAGE POINT SINCE LAST OCTOBER SAYS MR SCHWARTZMAN MR SCHWARTZMAN RECOMMENDS HIGHQUALITY REVENUE BONDS WHICH ARE BACKED BY THE REVENUES OF THE ISSUER FOR INVESTORS LIVING IN NEW YORK HE SAYS A GOOD INVESTMENT WOULD BE REVENUE BONDS ISSUED BY THE TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY WHICH HAS A FAIRLY STEADY FLOW OF REVENUES AND IS LIKELY TO BENEFIT FROM MR CLINTON'S PROPOSALS TO BOOST INFRASTRUCTURE INVESTMENT THE BONDS ARE RATED SINGLEAPLUS BY S&P AND DOUBLEA BY MOODY'S PRICES OF US TREASURY NOTES AND BONDS ENDED MIXED FRIDAY WITH LONGER ISSUES CHALKING UP MODEST GAINS WHILE SHORT AND INTERMEDIATE SECURITIES FINISHED WITH SMALL LOSSES THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/4 POINT TO 101 14/32 TO YIELD 700 DOWN FROM 702 ON THURSDAY THAT IS THE LOWEST YIELD SINCE THE TREASURY BEGAN REGULAR ISSUANCE OF THE 30YEAR BOND IN 1977 WITH NO MAJOR ECONOMIC DATA RELEASED FRIDAY THE MARKET'S ATTENTION WAS FIXED ON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN'S SEMIANNUAL HUMPHREYHAWKINS TESTIMONY BEFORE THE SENATE BANKING COMMITTEE BUT EVEN MR GREENSPAN'S APPEARANCE ON CAPITOL HILL DID LITTLE TO STIR UP A BOND MARKET WEARY AFTER THE NEWS OF PRIOR DAYS AS HAD BEEN ANTICIPATED MR GREENSPAN ANNOUNCED THAT THE FED HAD LOWERED ITS MONEY SUPPLY TARGETS BY HALF A PERCENTAGE POINT IN WHAT WAS TERMED A TECHNICAL ADJUSTMENT MR GREENSPAN ALSO PRESENTED THE FED'S ECONOMIC FORECASTS WHICH CALLED FOR SLIGHTLY STRONGER ECONOMIC GROWTH AND LOWER INFLATION I DIDN'T FIND ANYTHING THAT WAS A SURPRISE IN GREENSPAN'S COMMENTS AND THE MARKET REACTED ACCORDINGLY SAID MICHAEL STRAUSS CHIEF ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC THE TREASURY IS SCHEDULED TO AUCTION 11 BILLION OF TWOYEAR NOTES TOMORROW AND 1525 BILLION OF FIVEYEAR NOTES WEDNESDAY IN WHENISSUED TRADING THE TWOYEAR NOTE YIELDED 401 LATE FRIDAY AND THE FIVEYEAR NOTE YIELDED 530 IN THE GLOBAL BOND MARKET THE KINGDOM OF SWEDEN PRICED A 2 BILLION ISSUE OF 10YEAR GLOBAL BONDS AS 65 ISSUES TO YIELD 656 OR 042 PERCENTAGE POINT ABOVE THE TREASURY'S 10YEAR NOTE JOINT LEAD MANAGERS WERE MORGAN STANLEY & CO AND SALOMON BROTHERS INC THE BORROWER'S OUTSTANDING SENIOR DEBT IS RATED DOUBLEA1 BY MOODY'S AND TRIPLEA BY S&P INVESTORS SAID THE DEAL SOLD WELL ALTHOUGH DEMAND WAS CENTERED IN EUROPE LESS THAN HALF OF THE BONDS WERE PLACED IN THE US THEY SAID NONETHELESS THE SPREAD ON THE ISSUE NARROWED TO ABOUT 040 PERCENTAGE POINT IN LATE TRADING A SIGN OF STRONG DEMAND 9302220048 930222 THE OUTLOOK CLINTON FALLS SHORT ON SPENDING REVAMP BY ALAN MURRAY WASHINGTON BY NOW IT IS CLEAR THE ACHILLES' HEEL OF PRESIDENT CLINTON'S ECONOMIC PLAN IS ITS RELIANCE ON TAX INCREASES RATHER THAN SPENDING CUTS TO REDUCE THE DEFICIT WHILE SELLING THE PLAN LAST WEEK MR CLINTON CONTINUED TO INSIST IT CONTAINS ONE DOLLAR IN SPENDING CUTS FOR EVERY DOLLAR'S TAX RISE BUT ONLY THE MOST GENEROUS SORT OF ACCOUNTING COMBINED WITH AN IMMODEST PUFF OF BLUE SMOKE ENABLES HIM TO MAKE SUCH A CLAIM AMONG THE LEAST QUESTIONABLE ITEMS COUNTED AS SPENDING CUTS IN THE PLAN ARE 21 BILLION RAISED OVER THE NEXT FOUR YEARS BY TAXING SOCIAL SECURITY BENEFITS 11 BILLION SAVED BY SHIFTING FROM LONGTERM TO SHORTTERM DEBT 24 BILLION IN REDUCED DEBTSERVICE COSTS AT LEAST 6 BILLION IN NEW USER FEES AND MORE THAN 80 BILLION IN SPENDING CUTS OVER FOUR YEARS THAT WERE REQUIRED IF NOT ACTUALLY SPECIFIED UNDER THE 1990 BUDGET AGREEMENT TAKE THOSE AWAY AND THE NET SPENDING CUTS VIRTUALLY DISAPPEAR EVEN IF YOU ALLOW MR CLINTON'S LOOSE DEFINITIONS TAX INCREASES ACCOUNT FOR ROUGHLY 85 OF THE DEFICIT REDUCTION IN 1994 AND MORE THAN 60 IN 1995 IT'S NOT UNTIL 1997 THAT ONE CAN BEGIN TO ARGUE USING THE ADMINISTRATION'S CALCULUS THAT SPENDING CUTS ARE AS LARGE AS TAX INCREASES BUT ANYONE WHO WAS HALFAWAKE DURING MR CLINTON'S CAMPAIGN SHOULDN'T BE SURPRISED WHAT MADE CANDIDATE CLINTON DIFFERENT FROM HIS DEMOCRATIC PREDECESSORS WASN'T A COMMITMENT TO REDUCING THE SCOPE OF GOVERNMENT BUT A COMMITMENT TO CHANGING THE SCOPE OF GOVERNMENT HIS CONTRIBUTION TO THE DEMOCRATIC DEBATE WAS THE NOTION THAT A HEALTHY HIGHWAGE ECONOMY IS THE MOST IMPORTANT FAMILY POLICY URBAN POLICY LABOR POLICY MINORITY POLICY AND FOREIGN POLICY AMERICA CAN HAVE TO SERVE THAT END MR CLINTON PLEDGED TO INCREASE GOVERNMENT INVESTMENT SPENDING THAT WOULD IMPROVE THE LONGTERM PRODUCTIVITY AND EARNING POWER OF THE AMERICAN WORK FORCE AND TO DECREASE GOVERNMENT CONSUMPTION SPENDING THAT MERELY PROVIDES RELIEF TODAY BUT DOES LITTLE TO BUILD FOR TOMORROW IN ASSESSING WHETHER THE PLAN UNVEILED LAST WEEK IS TRUE TO THAT PROMISE THE OVERALL BALANCE BETWEEN TAXES AND SPENDING IS LESS IMPORTANT THAN CHANGES MADE AMONG SPENDING PROGRAMS ECONOMIC TERMS SUCH AS INVESTMENT OF COURSE CAN QUICKLY LOSE DEFINITION WHEN APPLIED TO GOVERNMENT SPENDING EVERY CONSTITUENCY LOBBIES OVERTIME TO MAKE SURE THEIR SPENDING IS INCLUDED IN THE FAVORED CATEGORY ANYONE WHO DOUBTS THAT NEED ONLY LOOK AT HOW THE NEW ADMINISTRATION DEFINED STIMULUS IN COMPILING ITS 16 BILLION ECONOMIC STIMULUS PACKAGE THERE TUCKED AWAY WITH SPENDING ON HIGHWAYS AND MASS TRANSIT ARE BIG BOOSTS IN PROGRAMS SUCH AS FOOD ASSISTANCE TO THE POOR AIDS RESEARCH HEAD START AND COLLEGE GRANTS ALL ARE WORTHY PROGRAMS BUT THEY WILL DO LITTLE TO JUMP START THE ECONOMY STILL A CLOSE LOOK AT THE ECONOMIC PLAN SHOWS THE NEW ADMINISTRATION HAS LADLED A LOT OF NEW MONEY INTO PROGRAMS THAT CAN BE TERMED INVESTMENT VICE PRESIDENT GORE AND LABOR SECRETARY ROBERT REICH WHO BOTH ATTENDED MOST OF THE LONG SESSIONS IN WHICH THE PLAN WAS ASSEMBLED ARGUED TIRELESSLY FOR MORE SPENDING ON TECHNOLOGY AND FOR EDUCATION TRAINING AND APPRENTICESHIP PROGRAMS THE ADMINISTRATION ALSO PUT A HIGH PRIORITY ON PROGRAMS FOR CHILDREN WHICH MAY IN THE END BE THE MOST IMPORTANT LONGTERM INVESTMENT ASSURING THAT THE NEXT GENERATION IS PREPARED FOR THE ECONOMIC CHALLENGES IT WILL UNDOUBTEDLY MEET THE CLINTON ADMINISTRATION WAS FAR MORE TIMID HOWEVER WHEN IT CAME TO CUTTING GOVERNMENT SPENDING ON CONSUMPTION THE FEDERAL GOVERNMENT SENDS OUT HUNDREDS OF BILLIONS OF DOLLARS OF CHECKS EACH YEAR TO SENIOR CITIZENS VETERANS MILITARY RETIREES FARMERS AND OTHERS THERE ARE NO SEMANTIC GYMNASTICS THAT ALLOW SUCH PROGRAMS TO BE CHARACTERIZED AS INVESTMENT YET THOSE ARE THE PROGRAMS THAT HAVE GROWN LIKE WILDFIRE IN RECENT DECADES DWARFING GOVERNMENT SPENDING ON CHILDREN EDUCATION TECHNOLOGY AND LATELY EVEN ON DEFENSE THE CLINTON BUDGET AX BARELY GRAZED THE SURFACE OF THOSE BENEFIT PROGRAMS THE NEW PRESIDENT DID DECIDE TO TAX THE SOCIAL SECURITY BENEFITS OF HIGHINCOME AMERICANS AND HE HAS MADE SOME SMALL ADJUSTMENTS IN FARMERS AND VETERANS BENEFITS HIS CUTS IN THE MEDICARE PROGRAM FOR THE ELDERLY ON THE OTHER HAND FALL ALMOST ENTIRELY ON HEALTHCARE PROVIDERS NOT HEALTHCARE CONSUMERS FOR THE MOST PART THE HUGE GOVERNMENT CONSUMPTION BUDGET HAS BEEN LEFT INTACT BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN MADE AN ATTEMPT TO TAKE MORE OUT OF THOSE BENEFIT PROGRAMS BY PROPOSING A ONETIME FREEZE IN COSTOFLIVING INCREASES MADE TO COUNTER THE EFFECTS OF INFLATION TO PROTECT THE POOR THEY PROPOSED GIVING FULL COSTOFLIVING BENEFIT INCREASES TO THOSE AT OR BELOW THE POVERTY LEVEL OTHERS WOULD HAVE GOTTEN A BENEFIT INCREASE LIMITED TO THE DOLLAR AMOUNT GIVEN THOSE AT THE POVERTY LEVEL BUT EVEN THAT MODEST PLAN WAS REJECTED THOSE ON THE PRESIDENT'S ECONOMIC TEAM WHO CHAMPIONED INVESTMENT SPENDING LOST THEIR STOMACHS WHEN IT CAME TO CUTTING CONSUMPTION SPENDING LEON AND ALICE SAID ONE BUDGET OFFICIAL ENDED UP WITH TREAD MARKS ALL OVER THE FACES WHILE IT IS STILL FAR FROM THE RADICAL REALIGNMENT OF SPENDING PRIORITIES THAT CANDIDATE CLINTON PROMISED THE RESULT IS A PLAN THAT REDUCES THE DEFICIT LARGELY THROUGH TAX INCREASES IT ALSO BEGINS TO TILT GOVERNMENT SPENDING IN A DIRECTION THAT WILL DO MORE TO HELP LONGRUN ECONOMIC GROWTH 9302220047 930222 CORRECTIONS & AMPLIFICATIONS KENNETH L LUCAS AN ENGLEWOOD COLO PRINCIPAL OF MLB INVESTMENTS LTD WAS SUSPENDED FOR 30 DAYS AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR ONE YEAR BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC FOR ALLEGED RULES VIOLATIONS MR LUCAS DIDN'T ADMIT OR DENY THE ALLEGATIONS A FRIDAY ARTICLE INCORRECTLY SAID MR LUCAS HAD BEEN BARRED FEDERAL NATIONAL MORTGAGE ASSOCIATION'S SERIES 199332 REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES ARE BACKED BY A STRIPPED MORTGAGEBACKED TRUST SMBS TRUST 212 SMBS 212 IS BACKED BY 400 MILLION IN 8 30YEAR MORTGAGES FRIDAY'S NEW SECURITIES ISSUES LISTINGS INCORRECTLY SAID THE REMICS WERE BACKED BY 85 30YEAR MORTGAGES A NEWSWEEK ARTICLE ON JULY 27 CONCERNING EVIDENCE OF A NEW AIDS VIRUS SIMILAR TO THE HUMAN IMMUNODEFICIENCY VIRUS RAN IN THE MAGAZINE'S NEWS OF THE WEEK SECTION A FEB 11 WALL STREET JOURNAL ARTICLE ON DOUBTS RAISED ABOUT THE NEW VIRUS MISCHARACTERIZED THE NEWSWEEK ARTICLE AS A COVER STORY 9302220046 930222 COMMODITIES CLINTON'S EMPHASIS ON TAX INCREASES MAY MEAN COMMODITIES PRICES WILL DECLINE ANALYSTS SAY BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CLINTON ADMINISTRATION'S PROPOSED ECONOMIC PACKAGE PROVIDES LITTLE SOLACE TO PARTICIPANTS IN THE STRUGGLING COMMODITIES MARKETS AN EMPHASIS ON TAX INCREASES INSTEAD OF ECONOMIC STIMULUS SUGGESTS TO MANY COMMODITIES EXPERTS THAT PRICES ARE HEADED LOWER AT BEST THEY SAY THE IMPACT OF THE PRESIDENT'S PLAN WILL BE NEUTRAL MY FIRST GUT REACTION IS THAT THE CLINTON PROGRAM IS LIABLE TO BE DEFLATIONARY SAYS HUNT TAYLOR MANAGING DIRECTOR OF DUICH INVESTMENT CO A SAN FRANCISCO COMMODITY TRADING ADVISER OTHER ANALYSTS SAY INDUSTRIAL COMMODITIES METALS AND LUMBER MOSTLY WILL BE THE ONES MOST LIKELY DRAGGED DOWN BY THE PRESIDENT'S PROGRAM THEY'RE ALSO THE ONES THAT HAVE BEEN SHOWING THE MOST PRICE STRENGTH LATELY LUMBER PLATINUM AND PALLADIUM HAVE POWERED THE RECENT RISE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS TO LEVELS AROUND 202 FROM EARLIER LOWS OF 198 PRIOR TO THE PRESIDENT'S SPEECH WEDNESDAY THE CRB INDEX WHICH IS WIDELY REGARDED AS AN INFLATION BAROMETER CLOSED LITTLE CHANGED FRIDAY AT 20266 AND SOME ANALYSTS THINK IT MAY SOON DECLINE A LOT WILL DEPEND ON WHETHER THIS PACKAGE DRIVES INTEREST RATES LOWER CAUTIONS STEVE PLATT A SENIOR ANALYST WITH DEAN WITTER IN CHICAGO YIELDS ON LONGTERM TREASURY BONDS IN FACT DECLINED BOTH THURSDAY AND FRIDAY MOST MARKET WATCHERS BELIEVE THE UNPRECEDENTED INCREASE IN TAXES OUTLINED IN MR CLINTON'S PLAN WILL MORE THAN OUTWEIGH ANY BOOST FROM FEDERAL CAPITALSPENDING PROJECTS OR SHORTTERM DECLINES IN INTEREST RATES THE CLINTON PLAN IS NOT PARTICULARLY GOOD FOR METALS SAYS MR TAYLOR WHOSE COMPANY TRADES IN A RANGE OF COMMODITIES FROM METALS TO CRUDE OIL THE INFRASTRUCTURE SPENDING IS GOING TO BE MORE THAN OFFSET BY THE TAX HIKES SOME ANALYSTS SAY THE SPENDING CUTS AND TAX INCREASES PROPOSED WEDNESDAY BY MR CLINTON HELPED TRIGGER A SHARP FALL THURSDAY AND FRIDAY IN CERTAIN INDUSTRIAL METALS SUCH AS PLATINUM PALLADIUM AND SILVER PLATINUM FUTURES SKIDDED MORE THAN 9 LOWER FOR APRIL DELIVERY AND PALLADIUM FUTURES FOR JUNE DELIVERY TUMBLED 8 IN TRADING THURSDAY AND FRIDAY ON THE NEW YORK MERCANTILE EXCHANGE BUT OTHERS INSIST THAT US FISCAL POLICY WHETHER INFLATIONARY OR DEFLATIONARY HAS NO DRAMATIC EFFECT ON SHORTTERM SWINGS IN COMMODITY PRICES THEY POINT OUT THAT COMMODITIES ARE TRADED AROUND THE WORLD AND THAT PRICE SWINGS ARE ROOTED IN WORLDWIDE SUPPLY AND DEMAND FACTORS MERRILL LYNCH FUTURES STRATEGIST WILLIAM O'NEILL ARGUES FOR INSTANCE THAT THE RECENT DOWNTURN IN FUTURES PRICES OF PALLADIUM AND PLATINUM METALS USED EXTENSIVELY IN THE AUTOMOTIVE INDUSTRY IS THE DIRECT RESULT OF REPORTS LAST WEEK THAT JAPAN WAS GOING TO CUT ITS IMPORTS OF THE TWO METALS BECAUSE OF DECLINING AUTO SALES PRIOR TO THE JAPANESE REPORTS NEWS THAT RUSSIA WAS EXPERIENCING SHARP PRODUCTION ROADBLOCKS HAD SENT PALLADIUM AND PLATINUM PRICES SOARING THE UNITED STATES IS ONLY A SMALL PIECE OF THE PICTURE MR O'NEILL SAYS THE GLOBAL RECESSION IS REALLY MORE IMPORTANT THAN WHAT GOES ON IN THE UNITED STATES THIS IS ONE REASON WE'VE HAD A MUTED RESPONSE IN METALS BUT OTHER TRADERS AND ANALYSTS ARGUE THAT THE STIMULUS PACKAGE MAY GIVE AT LEAST SHORTTERM SUPPORT TO SOME COMMODITIES PRICES THEY EXPECT FUTURES PRICES OF CERTAIN METALS SUCH AS COPPER ALUMINUM AND NICKEL TO RISE MODERATELY AS A RESULT OF THE 31 BILLION STIMULUS PACKAGE PROPOSED BY THE PRESIDENT FOR ROADS BRIDGES MASS TRANSPORT SYSTEMS AND OTHER INFRASTRUCTURE PROJECTS PAUL O'NEILL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ALUMINUM CO OF AMERICA SAYS THE ENERGY TAX WILL INCREASE ALUMINUM COSTS BUT MARGINALLY COMPARED TO WHAT'S REALLY PLAGUING THE INDUSTRY THE HUGE INCREASE IN AVAILABLE SUPPLY AS A CONSEQUENCE OF THE SOVIET UNION COLLAPSING UPON ITSELF NICK GERBER WHO RUNS THE MARC STEVENS FUTURES INDEX FUND IN SAN FRANCISCO BELIEVES THE CLINTON PROPOSAL WILL PROVIDE A MILD BOUNCE FOR BROADBASED INDUSTRIAL COMMODITIES WHICH HAVE DROPPED BY MORE THAN 30 OVER THE PAST FIVE YEARS CLEARLY THE ECONOMY IS PICKING UP AND THIS 30 BILLION STIMULUS WILL SPARK SOME MORE DEMAND HE SAYS I'M NOT EXPECTING A HUGE PRICE INCREASE HOWEVER ON THE AGRICULTURAL FRONT THE CLINTON PLAN REALLY HAS NOT HAD THAT MUCH IMPACT IN TERMS OF FOODS OBSERVES DEAN WITTER'S MR PLATT CERTAINLY THE HIGHER COST OF TRANSPORTATION WHICH WILL RESULT FROM THE NEW ENERGY TAX WILL HAVE SOME BEARING ON FOOD PRICES OVER THE LONGER TERM ENERGY IN GENERAL IS A KEY COMPONENT IN THE AGRICULTURAL SECTOR FRED BRILL DIRECTOR OF ENERGY RESEARCH AT PEGASUS ECONOMETRIC GROUP IN HOBOKEN NJ PREDICTS THAT THE NEW ENERGY TAX IF APPROVED BY CONGRESS IN ITS CURRENT FORM WILL NOT SIGNIFICANTLY AFFECT THE ENERGY MARKET BUT WILL HAVE MILD INFLATIONARY REPERCUSSIONS FOR THE REST OF THE ECONOMY THE INCREASE IN ENERGY PRICES DUE TO THIS TAX WILL BE LESS THAN THE VOLATILITY THAT WE SEE IN A NORMAL YEARLY CYCLE OF SWINGS IN THE PRICE OF CRUDE OF AROUND 25 CENTS A GALLON MR BRILL SAID THE FACT IS WE ARE PAYING LESS FOR OIL PRODUCTS TODAY THAN IN 1980 IN NOMINAL TERMS AND EVEN LESS IN INFLATIONADJUSTED TERMS AND THIS IS NOT GOING TO CHANGE AFTER THE ENERGY TAX IS IMPLEMENTED HE ADDED SINCE THURSDAY LIGHT SWEET CRUDE FOR DELIVERY IN MARCH HAS GAINED MORE THAN 25 CENTS A BARREL TO 1962 LOOKING AHEAD TO COMMODITIES MARKETS THIS WEEK CATTLE PRICES ARE EXPECTED TO COME UNDER PRESSURE TODAY IN THE WAKE OF A GOVERNMENT REPORT THAT CATTLE FEEDLOTS IN THE SEVEN MAJOR RANCH STATES ARE THE MOST CROWDED SINCE 1974 A MONTHLY SURVEY RELEASED AFTER THE CLOSE OF TRADING FRIDAY BY THE AGRICULTURE DEPARTMENT SHOWED 907 MILLION CATTLE ON FEEDLOTS ON FEB 1 UP 11 FROM THE SAME 1992 DATE THE JUMP WAS LARGER THAN EXPECTED BY MOST CATTLE TRADERS THE POPULATION ON FEEDLOTS WHERE LIVESTOCK ARE FATTENED FOR SLAUGHTER IS A LEADING INDICATOR OF BEEF SUPPLY AND THUS RETAIL PRICES THE GOVERNMENT ALSO REPORTED THAT FEEDLOTS DURING JANUARY SOLD 10 FEWER MATURE CATTLE TO MEATPACKERS COMPARED WITH JANUARY 1992 MEANWHILE RANCHERS PLACED 3 MORE YOUNG CATTLE ONTO FEEDLOTS DURING THAT MONTH COMPARED WITH THE SAME 1992 MONTH THE CHEAP PRICE OF CORN IS SPURRING RANCHERS TO MOVE THEIR CATTLE TO FEEDLOTS WHERE THEY ARE FATTENED QUICKLY ON A CORNBASED DIET 9302220045 930222 WORLD MARKETS PHILIPPINE LONG DISTANCE DESPITE POOR SERVICE PROVES A RINGING SUCCESS FOR MANY SHAREHOLDERS BY LAWRENCE MACDONALD STAFF REPORTER OF THE WALL STREET JOURNAL MANILA THE PHILIPPINES FOR CUSTOMERS PHILIPPINE LONG DISTANCE TELEPHONE IS A NEARMONOPOLY THAT PROVIDES POOR SERVICE AT HIGH PRICES FOR SHAREHOLDERS AT LEAST THOSE WHO OWN VOLUNTARILY PURCHASED COMMON VOTING STOCK THE COMPANY IS BETTER THAN GOLD HOW CAN A COMPANY THAT SO DISPLEASES ITS CUSTOMERS THE WAITS FOR INSTALLATION ARE LONG AND BUSY SIGNALS AND DISRUPTED CALLS ARE FREQUENT KEEP ON PLEASING ITS SHAREHOLDERS THE ANSWER ANALYSTS SAID LIES IN INVESTORS' LONGHELD PERCEPTION THAT PHILIPPINE LONG DISTANCE WILL CONTINUE TO DOMINATE THE COUNTRY'S TELECOMMUNICATIONS MARKET REGARDLESS OF CUSTOMER PREFERENCES STOCK ANALYSTS ALWAYS CONCENTRATE ON THE EARNINGS AND IF YOU CONCENTRATE ON THAT THE OUTLOOK IS ALWAYS BRIGHT SAID JOEY SALCEDA CHIEF OF RESEARCH AT BARING SECURITIES PHILIPPINES INC THERE IS NO FACTORING IN SUCH QUALITATIVE FACTORS AS SERVICE AS A RESULT PHILIPPINE LONG DISTANCE STOCK WHICH ACCOUNTS FOR ABOUT A THIRD OF THE PHILIPPINE MARKET'S CAPITALIZATION AND IS ONE OF A HANDFUL OF PHILIPPINE ISSUES TRADED ON THE AMERICAN STOCK EXCHANGE IN NEW YORK HAS CONSISTENTLY PERFORMED WELL DESPITE GOVERNMENT PLEDGES TO OPEN THE TELECOMMUNICATIONS INDUSTRY TO GREATER COMPETITION INDEED THE SHARES HAVE RISEN AT A COMPOUNDED ANNUAL RATE OF ABOUT 79 SINCE FEBRUARY 1986 WHEN PRESIDENT FERDINAND MARCOS FLED THE PHILIPPINES AND CORAZON AQUINO TOOK OFFICE PLEDGING TO BREAK UP MARCOSBACKED MONOPOLIES SUCH AS PHILIPPINE LONG DISTANCE THE STOCK CLOSED FRIDAY AT 910 PESOS 3669 UNCHANGED MEANWHILE THE COMPANY'S SERVICE NETWORK WHICH ACCOUNTS FOR ABOUT 94 OF THE TELEPHONES IN THE PHILIPPINES HAS GROWN AT A SNAIL'S PACE THE NUMBER OF PHILIPPINE LONG DISTANCE LINES HAS INCREASED TO 1140000 FROM 820000 IN 1986 OR A COMPOUNDED ANNUAL RATE OF JUST 5 DURING THE SAME PERIOD THE POPULATION HAS GROWN NEARLY A FIFTH TO 666 MILLION THE RESULT PHILIPPINE LONG DISTANCE WHICH HAS A NATIONWIDE FRANCHISE NOW PROVIDES 17 LINES FOR EVERY 100 FILIPINOS UP FROM 15 LINES IN 1986 COMPANY OFFICIALS SAID THE BACKLOG OF 600000 APPLICANTS AWAITING SERVICE HAS ITS ROOTS IN THE COUNTRY'S ECONOMIC CRISIS WHICH AFTER 1983 MADE IT DIFFICULT FOR PHILIPPINE LONG DISTANCE TO BORROW ABROAD TO EXPAND ITS NETWORK THEY NOTED WITH SATISFACTION A RECENT SUCCESSFUL 250 MILLION PREFERREDSHARE OFFERING OVERSEAS SAYING THIS WILL HELP THE COMPANY INSTALL AN ADDITIONAL 450000 LINES BY 1995 AND 12 MILLION MORE AFTER THAT EVEN WITH ITS CURRENT NETWORK PHILIPPINE LONG DISTANCE HAS PERFORMED WELL FOR ITS OWNERS IN THE YEAR ENDED SEPTEMBER 1992 FOR EXAMPLE THE COMPANY EARNED 484 BILLION PESOS 1951 MILLION ON OPERATING REVENUE OF 1771 BILLION PESOS WHILE PHILIPPINE LONG DISTANCE'S PROFIT IS REGULATED BY THE GOVERNMENT CRITICS OF THE PROCESS SAY THE FORMULA THAT IS EMPLOYED WHICH IS BASED ON A PERCENTAGE OF THE COMPANY'S FIXED ASSETS PROVIDES LITTLE INCENTIVE TO BOOST EFFICIENCY THE LEGAL FRAMEWORK ALLOWS SCOPE FOR PHILIPPINE LONG DISTANCE TO MAXIMIZE PROFITS MR SALCEDA OF BARING SECURITIES SAID THE COMPANY'S SHARES ARE WIDELY HELD PARTLY OWING TO A 1973 DECREE THAT SUBSCRIBERS TO PHILIPPINE LONG DISTANCE SERVICE MUST BUY NONVOTING SHARES BUT CONTROL RESTS ALMOST ENTIRELY WITH THE COMPANY'S PRESIDENT ANTONIO COJUANGCO HIS IMMEDIATE RELATIVES AND FAMILY ASSOCIATES OF LONG STANDING DIRECTLY AND THROUGH A COMPANY CALLED PRIME HOLDINGS THESE INTERESTS OWN PHILIPPINE TELECOMMUNICATIONS INVESTMENT WHICH IN TURN OWNS 242 OF PHILIPPINE LONG DISTANCE'S VOTING STOCK GOVERNMENT SHAREHOLDERS AND US INVESTORS MOSTLY PASSIVE HAVE GIVEN MR COJUANGCO BROAD LATITUDE IN RUNNING THE COMPANY WHILE THE COMPANY'S BOARDROOM BUSINESS IS SHROUDED IN SECRECY PHILIPPINE LONG DISTANCE VICE PRESIDENT ANTONIO SAMSON DESCRIBED THE SYSTEM AS ONE UNDER WHICH MR COJUANGCO NOMINATES A BOARD THAT IS APPROVED BY SHAREHOLDERS AND THEN IN TURN REELECTS MR COJUANGCO PRESIDENT THOSE WHO CHOOSE NOT TO SUPPORT MR COJUANGCO'S SLATE ARE FREE TO DO SO HE SAID BUT THEIR CHANCE OF SUBSTITUTING AN ALTERNATIVE SLATE IS VERY SMALL TOKYO STOCKS ENDED MIXED FRIDAY AND THE NIKKEI INDEX FIRMED A BIT ON A LASTMINUTE REBOUND FUELED BY INDEXLINKED ARBITRAGE BUYING AMID A LACK OF FRESH INCENTIVES LONDON SHARES ROSE IN QUIET TRADING MOSTLY RELATED TO OPTIONS ON MONDAY IN TOKYO THE NIKKEI ROSE 1144 POINTS TO CLOSE THE MORNING SESSION AT 1702147 THE TOKYO MARKET AVOIDED A SELLOFF FRIDAY AFTER WALL STREET DECLINED ONLY A BIT THURSDAY FOLLOWING PRESIDENT BILL CLINTON'S PITCH FOR SWEEPING ECONOMIC CHANGE BUT THE YEN'S STRENGTH IN CURRENCY MARKETS CONTINUED TO WEIGH ON TOKYO MARKET SENTIMENT DOGGING EXPORTERS' STOCKS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 23 POINTS TO 28400 THE FT 30STOCK INDEX GAINED 36 POINTS TO 22008 VOLUME SHRANK TO 5332 MILLION SHARES FROM 6373 MILLION SHARES IN THE PREVIOUS SESSION THE SPARSE PARTICIPATION RESULTED LARGELY FROM A THURSDAY DINNER FOR ABOUT 2500 LONDON INVESTMENT ANALYSTS MANY OF WHOM DIDN'T ENTER THE MARKET FRIDAY AND OTHERS ARRIVED LATE MOST TRADING WAS RELATED TO SQUARING POSITIONS AHEAD OF THE EXPIRATION OF THE FEBRUARY OPTIONS CONTRACT STERLING'S ADVANCE HELPED BUOY THE MARKET IN FRANKFURT AFTER INITIAL SLUGGISHNESS SHARE PRICES RALLIED IN THE FINAL MINUTES OF TRADING TO CLOSE WITH MODEST GAINS THE DAX 30STOCK INDEX ROSE 513 POINTS TO 167739 BRINGING THE RISE FOR THE WEEK TO 2692 POINTS THE LATE SPURT WAS TRIGGERED BY THE EXPIRATION OF OPTIONS CONTRACTS IN THE FUTURES MARKET WHERE PARTICIPANTS SCRAMBLED TO POSITION UNDERLYING PRICES PARIS STOCKS EASILY ABSORBED PROFITTAKING AND ENDED HIGHER AS BULLISH SENTIMENT PERSISTED AMSTERDAM SHARES CLIMBED BROADLY ON AN OPTIONS EXPIRATION AND HOPES FOR LOWER GERMAN INTEREST RATES STOCKHOLM PRICES REBOUNDED FROM A WEAK OPENING TO SCORE GAINS BOOSTED BY INTERESTRATE SCENARIOS ZURICH EQUITIES' DROP CAME FROM PROFITTAKING SYDNEY PRICES FELL TO THEIR LOWEST LEVEL IN SEVEN SESSIONS ON JITTERY SELLING BECAUSE OF WALL STREET'S WIDE SWINGS THURSDAY HONG KONG'S STRING OF NINE CONSECUTIVE GAINS ENDED BECAUSE OF PROFITTAKING TAIPEI STOCKS DROPPED ON NEWS THAT TAIWAN PLANS TO PROPOSE A SECURITIES CAPITALGAINS TAX ON INSTITUTIONAL INVESTORS THAT WOULD TAKE EFFECT EARLY NEXT YEAR 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 9302220044 930211 HEALTH MYSTERY VIRUS SIMILAR TO HIV IS DISCOUNTED BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL FIVE REPORTS IN THE NEW ENGLAND JOURNAL OF MEDICINE TODAY CONTRADICT REPORTS FROM LAST SUMMER THAT A POSSIBLE MYSTERY VIRUS CAUSING AN AIDSLIKE SYNDROME POSES A NEW THREAT TO PUBLIC HEALTH AFTER COMBING THROUGH SOME 230000 CASES IN CDC'S AIDS FILES RESEARCHERS CONCLUDED THAT INCIDENTS WHERE AN UNKNOWN VIRUS WAS SUSPECTED IN PEOPLE SUFFERING FROM LOW COUNTS OF INFECTIONFIGHTING WHITE BLOOD CELLS AREN'T LINKED BY ANY COMMON CAUSE IN SHORT THE REPORTS ARGUE THERE IS NO MYSTERY VIRUS THE REPORTS BASED ON STUDIES BY THE US CENTERS FOR DISEASE CONTROL AND PREVENTION THE NATIONAL INSTITUTES OF HEALTH AND SEVERAL RESEARCH CENTERS HARK BACK TO THE INTERNATIONAL CONFERENCE ON AIDS IN AMSTERDAM IN JULY ON THE EVE OF THE CONFERENCE NEWSWEEK MAGAZINE PUBLISHED A COVER STORY DESCRIBING CASES OF AN AIDSLIKE SYNDROME THAT OCCURRED WITHOUT ANY TRACE OF HUMAN IMMUNODEFICIENCY VIRUS OR HIV STRONGLY SUGGESTING THAT A STEALTHY NEW MICROBE THREATENED THE NATION'S BLOOD SUPPLY CORNELL UNIVERSITY RESEARCHER JEFFREY LAURENCE STEPPED INTO THE MEDIA SPOTLIGHT EVEN WARNING THE PUBLIC TO CARRY THEIR OWN BLOOD WHILE TRAVELING THE NEW STUDIES CONCLUDE THAT THE 101 KNOWN CASES OF APPARENT IMMUNE SUPPRESSION WITHOUT HIV ARE RARE SPORADIC AND UNRELATED STEMMING FROM A VARIETY OF HEALTH PROBLEMS PROBABLY IN EXISTENCE FOR DECADES THIS ILLNESS ISN'T NEW OR TRANSMISSIBLE THE REPORTS CONCLUDE IN SUCH CASES NEITHER THE PATIENTS' SEXUAL PARTNERS NOR HOUSEHOLD MEMBERS WERE AFFECTED IN ADDITION PEOPLE WHO DONATED BLOOD TO THE PATIENTS AS WELL AS INDIVIDUALS WHO RECEIVED TRANSFUSIONS FROM THE PATIENTS WERE NOT FOUND TO HARBOR ANY ILLNESS AT THIS POINT WE CAN REASONABLY CONCLUDE THAT IT IS A RARE SYNDROME IS NOT NEW IS NOT CAUSED BY HIV AND DOES NOT APPEAR TO BE CAUSED BY A TRANSMISSIBLE AGENT WROTE ANTHONY S FAUCI HEAD OF THE NIH'S OFFICE OF AIDS IN AN EDITORIAL ACCOMPANYING THE RESEARCH REPORTS FURTHER DR FAUCI CHASTISED THE PRESS FOR FOMENTING NEAR HYSTERIA THROUGH EXAGGERATED REPORTS LAST SUMMER THE SPOTLIGHT LAST SUMMER TURNED A SLENDER AND PRELIMINARY REPORT INTO THE MAIN EVENT IN AMSTERDAM ECLIPSING MAJOR REPORTS ON THE RELENTLESS SPREAD OF AIDS AROUND THE WORLD INCLUDING A DEADLY NEW STRAIN RACING THROUGH MILITARY RECRUITS IN THAILAND PRESS ACCOUNTS ACCUSED PUBLIC HEALTH OFFICIALS OF IGNORING A LARGE PUBLIC HEALTH THREAT POSED BY THE MYSTERY VIRUS IN THE WAKE OF THE OUTCRY GLOBAL HEALTH AUTHORITIES ASKED DOCTORS TO REPORT ANY ODD IMMUNE DISORDERS AND IN FOLLOWING MONTHS SCIENTISTS WERE SUMMONED TO MEETINGS IN ATLANTA AND GENEVA AMID AN ATMOSPHERE OF CRISIS THE CDC REVIEWED 230000 CASES REPORTED IN ITS AIDS SURVEILLANCE SYSTEM AND INVESTIGATED 47 PEOPLE WHO FIT THE DESCRIPTION OF NONHIV IMMUNE DEFICIENCY OTHERS CONDUCTED MINUTE LAB ANALYSES OF CERTAIN HIVFREE PATIENTS THE RESULTING REPORTS ARE FEATURED IN TODAY'S ISSUE OF THE NEW ENGLAND JOURNAL SCOTT HOLMBERG OF THE CDC CHIEF AUTHOR OF ONE CDC REPORT IN THE JOURNAL FOUND THAT THE 47 PEOPLE FITTING THE DESCRIPTION SUFFERED FROM A RARE AND DIVERSE COLLECTION OF DISORDERS WITH NO COMMON THREAD TO UNITE THEM THIS PUTS BIG LIMITS ON THE AMOUNT OF CONCERN THE PUBLIC AND SCIENTIFIC COMMUNITY SHOULD HAVE DR HOLMBERG SAID IN A TELEPHONE INTERVIEW IT IS NOT AN EPIDEMIC IT IS NOT NEW IT IS NOT AIDS THOMAS SPIRA IN A SEPARATE CDC REPORT EXAMINED FIVE PATIENTS CLOSELY AND FOUND THEY HARBORED NO VIRUS AND NO TRACE OF A KEY VIRAL ENZYME KNOWN AS REVERSE TRANSCRIPTASE HE AGREED WITH DR HOLMBERG THAT THE NEW CASES DIFFERED FROM AIDS IN SEVERAL KEY RESPECTS ADDING NOTHING SUGGESTS THAT A TRANSMISSIBLE AGENT CAUSES THIS CONDITION VIROLOGIST DAVID HO OF THE AARON DIAMOND AIDS RESEARCH CENTER IN NEW YORK REPORTED IN A THIRD JOURNAL PAPER THAT HE TOO FINDS THE CASES DISSIMILAR FROM AIDS AND HAS YET TO SEE PROOF OF A NEW VIRUS HOWEVER HE LEAVES OPEN THE QUESTION OF WHETHER ONE MIGHT BE FOUND DR HO COULDN'T BE REACHED FOR ELABORATION THOUGH STILL SUSPICIOUS THAT A NEW VIRUS EXISTS CORNELL'S DR LAURENCE CONCEDED IN AN INTERVIEW THAT THE NEW ENGLAND JOURNAL REPORTS ARE PERFECTLY REASONABLE ADDING THAT HIS WORK HASN'T PROGRESSED MUCH SINCE LAST SUMMER I HAVE ONE PATIENT WITH VIRAL ENZYME AND THAT COULD BE FROM A MILLION DIFFERENT SOURCES HE SAID FURTHER HE SEEMED TO BACK OFF FROM EARLIER ASSERTIONS OF A NEW PUBLIC HEALTH THREAT SAYING HE NOW IS LOOKING AT A TINY SUBGROUP OF IMMUNE DISORDERS WE'RE TALKING ABOUT VERY SMALL NUMBERS HERE HE SAID A NEWSWEEK ARTICLE ON JULY 27 CONCERNING EVIDENCE OF A NEW AIDS VIRUS SIMILAR TO THE HUMAN IMMUNODEFICIENCY VIRUS RAN IN THE MAGAZINE'S NEWS OF THE WEEK SECTION A FEB 11 WALL STREET JOURNAL ARTICLE ON DOUBTS RAISED ABOUT THE NEW VIRUS MISCHARACTERIZED THE NEWSWEEK ARTICLE AS A COVER STORY 9302220043 930222 WHO'S NEWS VALUE HEALTH INC VALUE HEALTH INC AVON CONN ALVIN E DECKER 54 WAS NAMED VICE PRESIDENT FOR SALES A NEWLY CREATED POST VALUE HEALTH IS A PROVIDER OF MANAGED CARE AND RELATED INFORMATION SERVICES 9302220041 930222 BUSINESS BRIEF SAUDI PRINCE WITH BIG CITICORP STAKE TO SELL AS MANY AS 128 MILLION SHARES NEW YORK PRINCE ALWALEED BIN TALAL CITICORP'S LARGEST INDIVIDUAL SHAREHOLDER SAID HE WOULD SELL AS MANY AS 128 MILLION COMMON SHARES OVER THE NEXT THREE MONTHS THE MOVE WILL ENABLE HIM TO REAP MORE THAN 100 MILLION IN PROFITS THE PLAN WAS FILED FRIDAY WITH THE SECURITIES AND EXCHANGE COMMISSION BY THE 37YEAROLD SAUDI ARABIAN BUSINESSMAN IT COMES TWO YEARS AFTER HE MADE A 590 MILLION CAPITAL INFUSION TO BUY THE PREFERRED SHARES AT A TIME WHEN CITICORP WAS BATTERED BY BAD REAL ESTATE LOANS IN THE MONTHS BEFORE THE DEAL THE PRINCE ALSO BOUGHT 166 MILLION OF CITICORP'S COMMON SHARES IN THE OPEN MARKET CITICORP'S STOCK HAS MORE THAN DOUBLED IN PRICE SINCE THEN REFLECTING THE SUCCESSFUL IMPLEMENTATION OF CHAIRMAN JOHN REED'S COSTCUTTING AND CAPITALBUILDING PLAN A SEPARATE FILING WITH THE SEC LATE LAST WEEK SAID CITICORP'S BOARD APPROVED A 104 MILLION BONUS FOR MR REED HIS FIRST IN THREE YEARS ON TOP OF HIS 12 MILLION ANNUAL SALARY THE PRINCE'S FILING TO SELL SOME OF HIS SHARES EFFECTIVELY WITHDRAWS HIS REQUEST LAST YEAR FOR FEDERAL RESERVE BOARD PERMISSION TO HOLD MORE THAN 10 OF CITICORP'S COMMON STOCK THAT THRESHOLD WAS SET BY A 1991 AGREEMENT WITH THE FED A REPRESENTATIVE OF THE PRINCE COULDN'T BE REACHED FOR COMMENT AND A FEDERAL RESERVE SPOKESMAN WHO SAID THURSDAY THAT SOME INFORMATION ON THE EARLIER REQUEST WAS PENDING DIDN'T RETURN CALLS IN THE FILING THE PRINCE SAID THE CONVERSION OF HIS 5900 PREFERRED SHARES IS RESTRICTED BY THE PURCHASE AGREEMENT WITH CITICORP AND BY FEDERAL RESERVE REGULATIONS IF HE CONVERTED THE PREFERRED STOCK WITHOUT SELLING MOST OF HIS COMMON SHARES HIS TOTAL COMMON STOCK HOLDING WOULD CLIMB ABOVE THE 10 THRESHOLD TO 149 THE PRINCE'S AVERAGE PERSHARE PURCHASE PRICE FOR THE 166 MILLION COMMON SHARES WAS 1240 INDICATING PROFITS OF AT LEAST 125 MILLION AT CURRENT PRICES DEPENDING ON HOW MANY SHARES HE SELLS IN HIS FILING HE SAID HE WOULD SELL BETWEEN 92 MILLION AND 128 MILLION SHARES OVER THE NEXT THREE MONTHS ON FRIDAY SHARES OF CITICORP TRADED AT 2625 UP 150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PRINCE STANDS TO GAIN EVEN MORE IF HE CONVERTS THE PREFERRED STOCK TO COMMON AND SELLS AT CURRENT PRICES THE STAKE CONVERTS TO MORE THAN 36 MILLION COMMON SHARES INDICATING A PROFIT OF MORE THAN 370 MILLION IF SOLD AT FRIDAY'S PRICE 9302220040 930222 OTC FOCUS NEWSTOCK OFFERINGS POSE PERIL ANALYSTS WARN AS QUALITY OF ISSUES TENDS TO WEAKEN AMID BOOM BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AVERAGE NEWSTOCK ISSUE HAS SOARED 22 IN THE PAST SIX MONTHS BUT DON'T LET THE DAZZLING GAINS FOOL YOU WHILE INVESTORS STILL HAVE A HEALTHY APPETITE FOR NEWSTOCK OFFERINGS THERE ARE SIGNS THAT THE EASY MONEY ALREADY HAS BEEN MADE ANALYSTS ARGUE THAT FORTHCOMING INITIAL PUBLIC OFFERINGS AREN'T LIKELY TO DO NEARLY AS WELL AS RECENT STELLAR PERFORMERS SUCH AS ALPHABETA TECHNOLOGY PLATINUM SOFTWARE AND AMERICAN STUDIOS WHICH HAVE MORE THAN DOUBLED SINCE COMING PUBLIC IF THIS MARKET IS IN A SERIOUS CORRECTION THE RECENT IPOS WILL COME DOWN HARDER AND FASTER THAN THE MARKET AT LARGE WARNS JOHN LAPORTE MANAGER OF BALTIMORE'S T ROWE PRICE NEW HORIZONS FUND THE PROBLEM SAY ANALYSTS IS THAT THE QUALITY OF COMPANIES COMING PUBLIC TENDS TO DECLINE THE LONGER THE IPO FRENZY LASTS THAT MAKES THE IPO MARKET TREACHEROUS FOR NOVICE INVESTORS WHO ARE LURED INTO THE MARKET BY THE EARLY DAZZLING SUCCESSES MANY INVESTORS ARE ENTERING THE IPO MARKET HOPING TO FIND STOCKS SUCH AS CASINO MAGIC THE BESTPERFORMING IPO IN THE PAST SIX MONTHS CASINO MAGIC WHICH CAME PUBLIC IN OCTOBER IS NOW TRADING AT 19 1/4 NEARLY FOUR TIMES ITS OFFERING PRICE OF 5 BUT EVEN AN APPARENTLY SOLID SUCCESS LIKE CASINO MAGIC COULD BE VULNERABLE INVESTORS SAY THE RAPIDLY EXPANDING GAMBLING COMPANY WHICH PLANS TO OPEN A NEW CASINO IN BILOXI MISS EARLY THIS SUMMER MIGHT SUFFER A STOCK MARKET SETBACK IF IT CAN'T MAINTAIN ITS EXPECTED GROWTH RATE THE ONES WITH THE STRONGEST RUNUPS ARE THE MOST VULNERABLE TO A PRICE CORRECTION IN THE MARKET SAYS ROBERT NATALE STANDARD & POOR'S NEWISSUES ANALYST MANY TIMES THE GROWTH RATE MATURES AND SLOWS DOWN AND THESE STOCKS BECOME TOO EXPENSIVE FOR THEIR HIGH TRADING PRICES MR NATALE ALSO WARNS INVESTORS NOT TO JUMP QUICKLY INTO OTHER GAMBLING OFFERINGS BASED ON THE SUCCESS OF CASINO MAGIC USUALLY THE BETTER DEALS GO FIRST IN AN INDUSTRY UNDERWRITING CYCLE AT THE END OF THE CYCLE THE VALUATIONS ARE MUCH HIGHER AND THERE IS AN ADDED RISK THAT THE QUALITY OF THE DEAL ISN'T AS GOOD BUT IS RIDING ON THE NEWLY ATTRACTED ATTENTION HE SAYS SOME INVESTORS ALREADY HAVE SOLD OUT OF ARGOSY GAMING OFFERED LAST WEEK AT 19 A SHARE THROUGH LEAD UNDERWRITER DONALDSON LUFKIN & JENRETTE SCOTT MULLINIX A PORTFOLIO ASSISTANT WITH IDS GROWTH SPECTRUM ADVISORS IN MINNEAPOLIS SAYS THE FIRM BOUGHT INTO THE ARGOSY OFFERING AND SOLD IT 10 MINUTES AFTER IT OPENED ON THE MARKET THE ALTON ILLBASED COMPANY OWNS AND OPERATES A GAMBLING RIVERBOAT ON THE MISSISSIPPI IN ILLINOIS THE STOCK CLOSED UNCHANGED AT 19 1/4 ON FRIDAY MR MULLINIX SAYS HIS FIRM WAS ALSO QUICK TO SELL PRESIDENT RIVERBOAT CASINOS ANOTHER GAMBLING COMPANY ONE OF THE PAST SIX MONTHS' TOP 20 BESTPERFORMING IPOS PRESIDENT RIVERBOAT CAME PUBLIC AT 18 1/2 THROUGH LEAD UNDERWRITER MONTGOMERY SECURITIES AND IS NOW TRADING AT NEARLY DOUBLE THAT PRICE AT 35 1/2 THIS IS A HOT AREA OF THE MARKET BUT QUITE FRANKLY COMPETITION IS GOING TO BE A REAL ISSUE AT SOME POINT DOWN THE ROAD AND THE STOCK PRICE CAN ONLY GO SO HIGH SAYS MR MULLINIX NEW ISSUES HAVE STRUGGLED IN RECENT MONTHS THE AVERAGE IPO IS UP JUST 2 SINCE THE BEGINNING OF THE YEAR NOTES LINDSAY VANVORRHIS AN ANALYST WITH SECURITIES DATA CO OTHER INDEXES TELL THE SAME STORY THE STANDARD & POOR'S NEW ISSUES INDEX SHOWS A GAIN OF 34 FROM THE BEGINNING OF AUGUST BUT THE INDEX WHICH CONTAINS ALL BUT THE SMALLEST IPOS WITH AN OFFERING PRICE OF LESS THAN 5 IS UP JUST 012 FOR THIS YEAR THE NASDAQ COMPOSITE INDEX THE BENCHMARK OF THE OVERTHECOUNTER MARKET WHERE MOST NEW ISSUES TRADE ALSO REFLECTS A CURRENT WANING APPETITE FOR IPOS AND SMALL STOCKS THE INDEX ROSE 116 TO 66361 ON FRIDAY DOWN 64 FROM ITS FEB 4 HIGH OF 70885 AND DOWN 2 FOR THE YEAR TO DATE THE WEAKENING OF NEWISSUE STOCK PRICES SHOULD COME AS NO SURPRISE SAYS S&P'S MR NATALE THE AVERAGE NEW ISSUE RISES THE MOST WITHIN THE FIRST THREE MONTHS OF ITS OFFERING HE SAYS AN EVEN STRONGER TREND IS FOR THE COMPANIES THAT HAVE MANAGED TO DO WELL FOR THE FIRST SIX MONTHS WON'T DO AS WELL AFTERWARDS LIKE GAMBLING STOCKS ANALYSTS SAY RESTAURANT AND COMPUTER NETWORKING ISSUES HAVE ALSO BECOME OVERHEATED RESTAURANT OPERATOR FRESH CHOICE WHICH WAS BROUGHT PUBLIC IN EARLY DECEMBER IS TRADING AT 81 ABOVE ITS OPENING PRICE OF 13 THE STOCK EDGED UP 1/2 TO 23 1/2 FRIDAY NETWORKING COMPANY NETWORTH DOUBLED AS SOON AS IT HIT THE MARKET IN LATE NOVEMBER IT CLOSED AT 27 1/2 FRIDAY 72 ABOVE ITS OFFERING PRICE OF 16 RIGHT NOW INVESTORS ARE WARY OF MOST HEALTH CARE AND BIOTECHNOLOGY ISSUES BECAUSE OF THE UNCERTAINTIES SURROUNDING PRESIDENT CLINTON'S HEALTH CARE POLICY MR NATALE SAYS ANY NEW ISSUES THAT HELP WITH COST CONTAINMENT WOULD BE GOOD BUYS BUT IN THE MEANTIME HE RECKONS MOST MEDICALRELATED STOCKS WILL BE SHAKY AT BEST AND FEW NEW ISSUES IN THIS INDUSTRY WILL MAKE IT TO MARKET DESPITE THE DANGERS SHEARSON LEHMAN BROTHERS GROWTH STOCK ANALYST SUSAN HIRSCH LIKE MANY ANALYSTS REMAINS BULLISH ON GROWTH STOCKS AND THE NEWISSUES MARKET IN A REPORT RELEASED FRIDAY SHE NOTES THAT AGGRESSIVE GROWTH FUND MANAGERS HAVE 30 TO 35 OF THEIR PORTFOLIOS IN CASH SHE THINKS THAT SOME OF THIS MONEY WILL BE PUT TO WORK IN THE NEWISSUES MARKET IN THE NEXT SEVERAL MONTH WE BELIEVE TECHNOLOGY AND INFORMATION STOCKS WILL CONTINUE TO PROVIDE LEADERSHIP TO THIS SECTOR SHE SAYS BUT ANALYTS SAY INVESTORS SHOULD PICK THEIR TECHNOLOGY STOCKS CAREFULLY THE FORTHCOMING TECNOMATIX TECHNOLOGIES IS RATED AN AVOID BY S&P'S MR NATALE THE ISRAELBASED COMPANY PROVIDES SOFTWARE USED FOR COMPUTERAIDED PRODUCTION ENGINEERING THE 25 MILLIONSHARE OFFERING IS PLANNED TO COME TO MARKET AT BETWEEN 9 AND 11 A SHARE THROUGH LEAD UNDERWRITER SHEARSON LEHMAN BROTHERS MR NATALE SAYS THAT WITH AN EARNINGS ESTIMATE OF 25 CENTS A SHARE FOR 1993 THE STOCK WILL HAVE A HEFTY PRICETOEARNINGS RATIO OF 40 TIMES INVESTORS TOOK ANOTHER SMALL STEP BACK INTO THE OVERTHECOUNTER MARKET GIVING PRICES A SLIGHT LIFT BUT THEY CONTINUED TO SHY AWAY FROM HEALTH CARE ISSUES THE NASDAQ COMPOSITE INDEX ROSE 116 OR 018 TO 66361 ADVANCING ISSUES OUTNUMBERED DECLINERS 1432 TO 1234 ON TOTAL VOLUME OF 2433 MILLION SHARES DOWN FROM THURSDAY'S 2986 MILLION IT WAS ANOTHER WEAK DAY IN THE MEDICAL SECTOR US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION DROPPED 2 1/2 TO 43 1/2 LINCARE HOLDINGS A HOME THERAPY SERVICES CONCERN TUMBLED 4 1/4 TO 23 AND HEALTHCARE COMPARE WHICH PROVIDES COSTCONTAINMENT SERVICES SLUMPED 3 1/4 TO 15 1/2 BIOTECHNOLOGY STOCKS ALSO FARED POORLY AMGEN SANK 4 1/8 TO 45 SYNERGEN SLID 2 7/8 TO 42 1/8 AND BIOGEN EASED 1/4 TO 28 1/4 TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY SAID INVESTORS STILL AREN'T WILLING TO GAMBLE ON THE MEDICAL GROUP THEY REMAIN JITTERY ABOUT WHAT PRESIDENT CLINTON WILL PROPOSE WHEN HE UNVEILS HIS HEALTHCARE REFORM INITIATIVES NOW UNDER STUDY THE MEDICAL AND HEALTH CARE DISASTER CONTINUES MR CECIN SAID THE PRESIDENT IS TALKING ABOUT A LOT OF THINGS THAT AREN'T BEING RECEIVED VERY WELL HE SAID BUT CHARLES HOWLEY MANAGER OF NASDAQ TRADING AT SOUNDVIEW FINANCIAL GROUP SAID SOME INVESTORS ARE WILLING TO PLACE SMALL BETS ON SOME OF THE BIGGEST TECHNOLOGY SHARES THEY BELIEVE THE WORST IS OVER HE SAID INTEL'S SHARP JUMP OF 5 3/8 TO 115 3/8 LED THE TECH MARKET DELL COMPUTER ADDED 1 7/8 TO 36 1/2 ORACLE SYSTEMS GAINED 1 1/8 TO 30 1/2 AND ADOBE SYSTEMS ADVANCED 1 1/2 TO 43 3/4 APPLE COMPUTER WAS UNCHANGED AT 55 AND MICROSOFT FELL 1 7/8 TO 79 3/4 PICTURETEL SURGED 4 TO 25 LATE THURSDAY AFTERNOON THE DANVERS MASS VIDEO COMMUNICATIONS CONCERN POSTED A PROFIT OF 17 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH EARNINGS FROM OPERATIONS OF 10 CENTS A SHARE A YEAR EARLIER ON FRIDAY ALEX BROWN & SONS RAISED ITS RATING ON THE STOCK TO BUY FROM NEUTRAL MCI COMMUNICATIONS JUMPED 1 5/8 TO 39 1/2 ON FRIDAY MORGAN STANLEY & CO RAISED ITS RATING ON MCI TO BUY FROM HOLD INITIAL PUBLIC OFFERINGS FROM AUGUST 1 1992 TO FEBRUARY 18 1993 RANKED BY PERCENTAGE GAIN OR LOSS IN PRICE SINCE OFFERING DATE 9302220039 930222 PEPPERAND SALT WHAT TO BELIEVE IS SOMETHING TO FEAR THE DANGER IS CLEAR RECURRING ICE AGES TO BLOW HOT AND COLD BUT MY MIND IS GOING MAD 9302220038 930222 COMPUTERS LOTUS TO SELL A NOVEL TYPE OF SPREADSHEET BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS LOTUS DEVELOPMENT CORP TOMORROW WILL BEGIN SELLING AN INNOVATIVE SOFTWARE PROGRAM THAT SOME ANALYSTS AND EARLY REVIEWERS BELIEVE COULD SHAKE UP THE 1 BILLION SPREADSHEET MARKET THE NEW PROGRAM IMPROV FOR WINDOWS WILL BE PRICED AT 99 FOR THE FIRST 90 DAYS ITS LIST PRICE WILL JUMP TO 495 AFTER MAY 31 SUGGESTING A COMMON STREET PRICE OF 325 AT MANY RETAIL OUTLETS AT 99 LOTUS COULD SELL 500000 COPIES RIGHT OFF THE BAT IN THE FIRST 90 DAYS SAID DAVID READERMAN AN ANALYST AT LEHMAN BROTHERS EVERY SPREADSHEET USER IS GOING TO WANT TO TRY IT OUT IF IMPROV TAKES OFF IT COULD BE A REAL HELP FOR LOTUS THE GROWTH OF THE FLAGSHIP 123 LINE HAS SLOWED AS THE MARKET FOR SPREADSHEETS HAS BECOME SATURATED AND COMPETITORS HAVE GRABBED MARKET SHARE ESPECIALLY IN THE CRITICAL WINDOWS SOFTWARE MARKET THE SOFTWARE HAILED IN EARLY REVIEWS AS REVOLUTIONARY AND A NEW SPECIES OF SPREADSHEET WILL REACH RETAIL SHELVES 10 YEARS AFTER LOTUS SHIPPED THE FIRST COPY OF LOTUS 123 THE RUNAWAY BEST SELLER THAT HELPED TO BUILD THE PERSONALCOMPUTER INDUSTRY MANY ANALYSTS THINK THAT IT MIGHT HELP REPAIR LOTUS'S REPUTATION FOR INNOVATION WHICH HAS EBBED IN THE YEARS SINCE 123 CAME OUT AS COMPETITORS MICROSOFT CORP AND BORLAND INTERNATIONAL INC OUTPACED THE PIONEER WITH WHAT MANY CONSIDERED BETTERDESIGNED SPREADSHEETS WHAT HAS ATTRACTED SO MUCH ATTENTION IS IMPROV'S FLEXIBILITY AND ITS USE OF PLAIN ENGLISH INSTEAD OF COMPLICATED FORMULAS IN MOST SPREADSHEETS DATA ARE ENTERED INTO CELLS THAT INTERSECT ROWS AND COLUMNS AND ARE IDENTIFIED BY NUMBERS AND LETTERS IMPROV BY CONTRAST USES LABELS LIKE SALES OR EXPENSES IT ALLOWS USERS TO QUICKLY CREATE NEW MODELS REGIONAL SALES BY MONTH FOR EXAMPLE BECOMES MONTHLY SALES BY REGION WITH A CLICK OF THE MOUSE IMPROV COULD TRIGGER A NEW SPREADSHEET REVOLUTION AND PUT LOTUS BACK ON TRACK IN ITS CORE BUSINESS WRITES JOHN C DVORAK A COLUMNIST IN THE CURRENT ISSUE OF PC MAGAZINE IT'S CLEARLY THE EASIEST SPREADSHEET TO EDIT AND RESTRUCTURE AND NEITHER MICROSOFT NOR BORLAND HAS ANYTHING LIKE IT IF LOTUS MARKETS IT CORRECTLY AND HE IS SKEPTICAL OF THIS IT SHOULD BE AN INCREDIBLE SUCCESS LOTUS EXECUTIVES HAD APPARENTLY VIEWED IMPROV INITIALLY AS A NICHE PRODUCT ONE THAT WOULD APPEAL TO SOCALLED POWER USERS BUT ITS DESIGN AND EASE OF USE HAVE WON SUCH ACCLAIM THAT LOTUS MAY ATTEMPT TO MARKET IT MORE BROADLY HOWEVER THE PROGRAM PRESENTS A DELICATE MARKETING CHALLENGE WHICH MAY EXPLAIN WHY IT HAS TAKEN THE COMPANY SO LONG TO BRING IMPROV TO A MAINSTREAM MARKET FOR TWO YEARS AN EARLIER VERSION OF IMPROV HAS BEEN AVAILABLE ONLY ON SLOWSELLING NEXT COMPUTER INC COMPUTERS LOTUS CAN'T AFFORD TO MAKE OBSOLETE THE TRADITIONAL SPREADSHEET SAID JEFFREY TARTER PUBLISHER OF THE INDUSTRY MONTHLY SOFTLETTER WHO ADDED THAT LOTUS STILL GETS TWOTHIRDS OF ITS SALES FROM 123 BUT HE THINKS IMPROV MAY BE OVERKILL FOR THE MAJORITY OF SPREADSHEET USERS YOU DON'T REALLY NEED ALL THOSE FEATURES TO DO YOUR EXPENSE ACCOUNT THE IMPROV VERSION BEING SHIPPED TOMORROW WAS DESIGNED FOR MICROSOFT WINDOWS A SOFTWARE TEMPLATE OR INTERFACE THAT ALLOWS THE USE OF A MOUSE POINTING DEVICE AND IS THE FASTESTGROWING SOFTWARE CATEGORY LOTUS'S 123 HAS SO FAR BEEN UNABLE TO CAPTURE MORE THAN 30 OF THAT MARKET AFTER DOMINATING THE OLDER DOS CATEGORY FOR A DECADE FOR ITS PART MICROSOFT HAS BEEN QUIETLY SAYING IN RECENT DAYS THAT IT DOESN'T THINK IMPROV IS SUCH A BIG DEAL BUT THEN MANAGERS HAVE HINTED THAT A NEW VERSION OF EXCEL WILL OFFER SIMILAR FEATURES LOTUS MEANWHILE INSISTS IT IS IMPOSSIBLE TO PASTE IMPROVLIKE FEATURES ONTO EXISTING SPREADSHEETS A SPOKESMAN SAID LOTUS THOUGHT ABOUT PUTTING SUCH FEATURES INTO A FORTHCOMING 123 BUT DECIDED IT COULDN'T BECAUSE IMPROV'S ARCHITECTURE IS SO FUNDAMENTALLY NEW SOME OF THE ADVANCED FEATURES IN IMPROV HAVE ALREADY APPEARED IN OTHER PRODUCTS WHICH TYPICALLY HAVE BEEN SOLD AS FINANCIAL MODELING TOOLS WITHOUT FULL SPREADSHEET CAPABILITIES ONE IS CACOMPETE BY COMPUTER ASSOCIATES INTERNATIONAL INC WHICH ANALYSTS SAY WILL SOON BE AVAILABLE IN A NEW VERSION THAT IS DIRECTLY COMPETITIVE WITH IMPROV AMONG OTHER THINGS THESE PRODUCTS HAVE IN COMMON A MULTIDIMENSIONAL APPROACH THAT APPROACH IS INTENDED TO FREE USERS FROM THE HIGHLY STRUCTURED VIEW OF THE WORLD IMPOSED BY THE ROWS AND COLUMNS OF TRADITIONAL SPREADSHEETS AND TO ALLOW THEM TO CHOOSE ANY VIEW OF MULTIPLE VARIABLES FOR COMPARISON FOR EXAMPLE A TYPICAL SPREADSHEET MODEL OF A BUDGET MIGHT BE ORGANIZED BY TIME AND COSTS AND IS DIFFICULT TO BREAK UP BY DIVISIONS SAY OR PRODUCT LINES BYTE MAGAZINE SAID IN ITS IMPROV REVIEW THAT WHILE IT MAY NOT LURE ADVANCED USERS AWAY FROM MORE TRADITIONAL SPREADSHEETS IMPROV IS SURE TO INFLUENCE THE FUTURE DEVELOPMENT OF THE SPREADSHEET RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO CALLED IMPROV A VERY VERY NICE PRODUCT BUT IS DOUBTFUL IT WILL BECOME A MAJOR REVENUE CONTRIBUTOR FOR LOTUS BECAUSE IT ISN'T FULLY COMPATIBLE WITH 123 WHILE IMPROV READS WORK FILES FROM 123 OR EXCEL IT CAN'T HANDLE PROGRAMS CALLED MACROS WRITTEN BY USERS TO CUSTOMIZE 123 TERENCE QUINN AN ANALYST WITH FURMAN SELZ & CO SAID THAT WHILE IMPROV ISN'T GOING TO BE RIGHT FOR EVERYONE HE THINKS IT COULD NONETHELESS SELL BRISKLY BUT HE QUESTIONS WHETHER THE COMPANY HAS COMMITTED SUFFICIENT FUNDS TO MARKET AND SELL THE NEW PRODUCT I'M NOT SURE THEY REALIZE WHAT THEY HAVE HERE DISTRIBUTORS WHO HAVE BEEN ACCEPTING EARLY ORDERS FOR THE PRODUCT SAY THEY HAVE BEEN SEEING VERY STRONG DEMAND AT THE LEAST HE ADDED I KNOW EVERY FINANCIAL ANALYST ON WALL STREET IS GOING TO WANT A COPY 9302220037 930222 WHO'S NEWS INTERTEL COMMUNICATIONS INC INTERTEL COMMUNICATIONS INC DENVER ROBERT REUSS FORMER CHAIRMAN OF CENTEL CORP WAS NAMED A DIRECTOR OF THIS TELECOMMUNICATIONS CONCERN RAISING THE BOARD TO FIVE MR REUSS SERVED AS CENTEL'S CHAIRMAN FROM 1977 TO HIS RETIREMENT IN 1988 9302220036 930222 WHO'S NEWS INTERGRAPH CORP INTERGRAPH CORP HUNTSVILLE ALA JIM MEADLOCK 59 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPUTER COMPANY WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT MR MEADLOCK SUCCEEDS ELIOTT D JAMES 52 WHO RESIGNED TO PURSUE OTHER INTERESTS BUT WILL CONTINUE AS A CONSULTANT TO THE COMPANY 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 9302220035 930222 INTERNATIONAL GROUP DEVISES A BAILOUT PLAN FOR DUTCH DAF SPECIAL TO THE WALL STREET JOURNAL DAF HAS BEEN SAVED IN A SLIMMED DOWN FORM SAID COURTAPPOINTED ADMINISTRATORS AND DAF CHAIRMAN COR BAAN IN A JOINT STATEMENT A NEW JOINTSTOCK COMPANY CALLED DAF TRUCKS NV WILL BE CREATED FROM THE FORMER DAF NV THE SURVIVAL PLAN IN EFFECT WILL SLASH THE BIG TRUCK MAKER DOWN TO LESS THAN HALF ITS PREVIOUS SIZE OFFICIALS HOPE THE COMPANY IN ITS NEW FORM WILL BE ABLE TO COMPETE EFFECTIVELY IN A DEPRESSED AND FIERCELY COMPETITIVE EUROPEAN TRUCK MARKET THE BAILOUT IS A SUCCESS FOR THE GOVERNMENT WHICH IN RECENT DAYS HAS MANAGED TO SAVE NOT JUST DAF THE ONLY DUTCH TRUCK MAKER OF ITS KIND BUT ALSO ITS AEROSPACE INDUSTRY THE DAF AGREEMENT ENDS MONTHS OF BICKERING BETWEEN THE COMPANY'S BANKS AND THE GOVERNMENT BACKERS OVER A BAILOUT PACKAGE A DEADLOCK LAST MONTH FORCED A PENNILESS DAF INTO COURT PROTECTION FROM CREDITORS AND INTO THE HANDS OF SEPARATE ADMINISTRATIVE RECEIVERS IN THE NETHERLANDS AND THE UK THE FATE OF DAF'S SUBSTANTIAL BRITISH OPERATIONS WHICH ARE BEING HANDLED UNDER BRITISH BANKRUPTCY LAW IS STILL UNCLEAR MR BAAN SUGGESTED ON BRITISH RADIO YESTERDAY THE NEW DAF MIGHT BE INTERESTED IN RETAINING AT LEAST SOME OF ITS LEYLAND DAF PRODUCTION FACILITIES IN BRITAIN WHERE THE COMPANY USED TO EMPLOY MORE THAN 5500 PEOPLE BUT IN ANY CASE SUBSTANTIAL DAF JOBS IN THE UK WILL DISAPPEAR DAF PREVIOUSLY HAD A GLOBAL WORK FORCE OF MORE THAN 12500 PEOPLE UNDER THE DUTCH SURVIVAL PLAN BETWEEN 450 MILLION AND 500 MILLION GUILDERS OF NEW RISKBEARING EQUITY CAPITAL WILL BE PUMPED INTO DAF WITH MORE THAN 400 MILLION GUILDERS OF FRESH BANK LOANS AS WELL DAF'S ORIGINAL NINEMEMBER CONSORTIUM OF BANK CREDITORS HAS AGREED TO CONVERT SOME OF THE DEBT OUTSTANDING INTO EQUITY VALUED AT 45 MILLION GUILDERS OR MORE THAN 15 OF THE EQUITY IN THE NEW DAF 9302220034 930222 MOODY'S TO REVIEW OCCIDENTAL PETROLEUM ISSUE FOR DOWNGRADE LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID IT COMPLETED A PRIVATE PLACEMENT OF 115 MILLION SHARES OF CUMULATIVE CONVERTIBLE PREFERRED STOCK AND MOODY'S INVESTORS SERVICE INC PLACED THE SECURITIES UNDER REVIEW FOR POSSIBLE DOWNGRADE RAY R IRANI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE OIL AND CHEMICAL COMPANY SAID THE NET PROCEEDS OF ABOUT 563 MILLION ARE BEING USED TO REPAY OUTSTANDING LONGTERM DEBT IN ASSIGNING A RATING OF BAA3 TO THE CUMULATIVE CONVERTIBLE PREFERRED STOCK MOODY'S NOTED THE SUBORDINATED STATUS OF THE SECURITIES IN LIQUIDATION TO THE CLAIMS OF OCCIDENTAL'S DEBTHOLDERS THE SHARES OF 3875 CUMULATIVE CONVERTIBLE PREFERRED STOCK HAVE A LIQUIDATION PREFERENCE OF 50 A SHARE PLUS ACCRUED UNPAID DIVIDENDS AND ARE CONVERTIBLE AT ANY TIME AFTER MARCH 30 INTO SHARES OF OCCIDENTAL'S COMMON STOCK AT AN INITIAL CONVERSION PRICE OF 2276 A SHARE OF COMMON STOCK 9302220033 930222 MANAGER'S JOURNAL TREAT BUSINESS AS YOUR PARTNER MR PRESIDENT BY HUGH AARON WHEN I STARTED OUT IN BUSINESS I HAD A MORTGAGED HOUSE AND AN AUTOMOBILE OWNED MOSTLY BY THE FINANCE COMPANY WHEN I SOLD MY BUSINESS ALMOST 20 YEARS LATER I OWNED TWO HOUSES AND TWO CARS HAD A SUBSTANTIAL NEST EGG AND NO DEBT IT PAINS ME TO THINK WHAT ENORMOUS AMOUNTS IN TAXES MY COMPANY MY EMPLOYEES AND I PAID THE GOVERNMENT FEDERAL STATE AND LOCAL DURING THOSE YEARS IN ESSENCE THE GOVERNMENT WAS A SILENT PARTNER TAKING ITS SHARE OF EVERY DOLLAR WE EARNED WE WERE THE VERITABLE GOOSE THAT LAID THE GOLDEN EGG SO LONG AS MY COMPANY WAS PERMITTED TO KEEP ENOUGH OF ITS PROFITS FOR WORKING CAPITAL GROWTH AND A COMFORTABLE INCOME FOR ITS EMPLOYEES I HAD NO COMPLAINT BUT WHENEVER THE GOVERNMENT CHANGED THE RULES ADVERSELY INSISTING FOR EXAMPLE THAT I HIRE A MIX OF PEOPLE CORRESPONDING TO THAT OF THE LOCAL POPULATION I LIMITED OUR EMPLOYMENT GROWTH I FELT COMPETENCE ALONE SHOULD BE THE MEASURE BY WHICH SOMEONE IS HIRED WHEN THE GOVERNMENT CONTINUED TO TAX DIVIDENDS AFTER CONSIDERING A CUT IN THIS TAX WE SIMPLY PAID NO DIVIDENDS AND INSTEAD PUT THE MONEY INTO TAXFREE AND TAXDEFERRED EMPLOYEE BENEFITS AND WHEN THE GOVERNMENT INCREASED THE CAPITALGAINS TAX IN 1986 I RUSHED TO SELL MY COMPANY BEFORE THE NEW INCREASED SCHEDULE WOULD TAKE EFFECT FURTHERMORE AFTER PAYING CORPORATE INCOME TAXES AT 50 FOR YEARS I FINALLY DECIDED IT WASN'T WORTH IT ANY LONGER ON THE OTHER HAND WHENEVER THE GOVERNMENT ALLOWED ME TO RETAIN MORE OF OUR PROFITS OR GAVE ME AN INDUCEMENT TO INVEST I RESPONDED AS IF IN LOCK STEP TO ITS PURPOSE AS A RESULT OF TAX INCENTIVES I INSTALLED ANTIPOLLUTION EQUIPMENT PURCHASED STATEOFTHEART MACHINERY DEVELOPED NEW PRODUCTS AND ESTABLISHED AN ESOP INDEED I TOOK ADVANTAGE OF GOVERNMENT GUARANTEES THROUGH THE SMALL BUSINESS ADMINISTRATION TO BORROW ESSENTIAL CAPITAL FOR STARTING THE BUSINESS THE RISK THE GOVERNMENT TOOK BY THAT SMALL GESTURE WAS REDEEMED A THOUSAND TIMES MY REACTIONS AS A BUSINESSMAN TO GOVERNMENT POLICY WERE FAIRLY TRANSPARENT THAT IS I REACTED POSITIVELY TO EVERYTHING THE GOVERNMENT DID THAT BENEFITED MY COMPANY AND NEGATIVELY TO EVERYTHING THE GOVERNMENT DID THAT HURT MY COMPANY MY BEHAVIOR MADE PERFECT SENSE THOSE THINGS THE GOVERNMENT DID THAT BENEFITED MY COMPANY LED TO MORE GROWTH THE HIRING OF ADDITIONAL EMPLOYEES AND THE PAYMENT OF MORE TAXES THAN BEFORE I ALSO OBSERVED THAT THOSE THINGS THE GOVERNMENT DID THAT HURT MY COMPANY LED TO STAGNATION IF NOT DECLINE THE LAYING OFF OR DISMISSAL OF EMPLOYEES AND A REDUCED TAX BURDEN IN SOME INSTANCES ZERO TAXES WHAT THE GOVERNMENT OFTEN DID TO RAISE REVENUE SIMPLY DIDN'T MAKE SENSE IT ENDED UP COSTING BOTH BUSINESS AND GOVERNMENT COFFERS AS AN ENTREPRENEUR I FOUND IT DIFFICULT TO FATHOM WHY THE GOVERNMENT DID THINGS THAT HURT MY COMPANY WHEN THE NET RESULT WAS TO REDUCE ITS TAKE AND WHEN I HEARD POLITICIANS AS I HEAR THEM AGAIN TODAY TALK OF RAISING TAXES TO PAY FOR THIS OR THAT OR TO REDUCE THE DEFICIT I SUSPECTED THEY DIDN'T REALIZE THEY WERE STIFLING THE ENTREPRENEURIAL SPIRIT AND TRASHING THE VERY WELLSPRING OF THE GOVERNMENT'S INCOME FROM MY ENTREPRENEURIAL VANTAGE POINT I FELT THEY SHOULD HAVE DONE JUST THE OPPOSITE THE REASON FOR SUCH BLINDNESS TO THIS OBVIOUS CAUSE AND EFFECT MAY BE THAT OUR POLITICIANS DON'T THINK LIKE BUSINESSPEOPLE NOR DO THEY APPRECIATE WHAT MOTIVATES THEM THEY MAY UNDERSTAND INTELLECTUALLY HOW ENTREPRENEURS THINK BUT THEY DON'T BELIEVE IT IN THEIR HEARTS EVEN THOSE POLITICIANS WHO HAVE BEEN IN BUSINESS SEEM TO FORSAKE THEIR ENTREPRENEURIAL PSYCHOLOGY ONCE IN OFFICE THEY CHOOSE TO IGNORE IT BECAUSE OF IMMEDIATE POLITICAL CONSIDERATIONS SUCH AS GETTING REELECTED I WOULD URGE EVERY OFFICEHOLDER FROM THE PRESIDENT ON DOWN TO ASK HOW HE OR SHE WOULD REACT TO A PARTICULAR TAX OR REGULATION WERE HE OR SHE IN BUSINESS NO EFFORT OF THE IMAGINATION IS NEEDED BECAUSE THE RESPONSE IS UNIVERSAL ALL OF US WILL INCREASE OUR RISK IF THE PAYOFF IS BETTER AND REDUCE OUR RISK IF IT ISN'T AND THE WILLINGNESS TO RISK BRINGS ON SUCCESSES THAT ENRICH THE PEOPLE AND GOVERNMENT ALIKE THE DECISIONS I MADE FOR MY COMPANY WERE LIVING PROOF OF THIS PRECEPT WE WERE NOT THE EXCEPTION BUT THE RULE OUR BUSINESS WAS BUT A SMALL TAX ENGINE THAT CONTRIBUTED TO THE GOVERNMENT'S COFFERS MULTIPLY OUR TYPICAL REACTION TO GOVERNMENT POLICY BY THAT OF EVERY INTELLIGENT BUSINESS MANAGER IN AMERICA AND THE MEANS BY WHICH OUR GOVERNMENT CAN RAISE OR REDUCE REVENUE IS EVIDENT HOW SIMPLE IT IS MR AARON WRITES FROM BELFAST MAINE HE IS THE AUTHOR OF BUSINESS NOT AS USUAL STONES POINT PRESS 1993 9302220032 930222 LETTERS TO THE EDITOR RIPE RED TOMATOES CONCERNING YOUR JAN 12 ARTICLE NEW CALGENE TOMATO MIGHT HAVE TASTED JUST AS GOOD WITHOUT GENETIC ALTERATION ANY CONSUMER OF FRESH TOMATOES CAN TELL YOU THAT THE TOMATOES AVAILABLE IN OUR STORES ARE A PATHETIC IMITATION OF REAL TOMATOES BECAUSE THEY ARE NOT PICKED RED RIPE THE FLAVR SAVR TOMATO IS THE AVERAGE CONSUMER'S ONLY HOPE FOR FULLFLAVORED TOMATOES FROM HIS LOCAL SUPERMARKET IN THE INTEREST OF DISCLOSURE I HAVE BEEN A CALGENE SHAREHOLDER FOR SEVERAL YEARS 9302220031 930222 CLINTON STAND ON CHINA TRADE MAY AFFECT US BUSINESS IN ASIA RISK ANALYST SAYS BY EDUARDO LACHICA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GUESS WHAT A POLITICALRISK ANALYST WOULD SAY IF YOU ASK WHAT HE THINKS IS THE GREATEST THREAT TO US BUSINESS IN ASIA TODAY KIM ILSUNG THE KHMER ROUGE WRONG HE'D SUGGEST THAT YOU LOOK NO FARTHER THAN WASHINGTON THE NO 1 POLITICAL RISK LIES IN CLINTON'S HANDLING OF CHINA SAYS THOMAS RECKFORD A VETERAN RISK ASSESSOR WHOSE ADVICE IS OFTEN SOUGHT BY US INVESTORS IF THE PRESIDENT WERE TO SUCCUMB TO CONGRESSIONAL DEMANDS AND PLACE CONDITIONS ON CHINA'S TRADE WITH THE US MR RECKFORD WARNS THE REPERCUSSIONS COULD DARKEN THE FUTURE OF US BUSINESS IN CHINA AND IN OTHER PARTS OF ASIA THAT THE TEALEAF READERS WORRY MORE ABOUT WASHINGTON LEGISLATION THAN THEY DO ABOUT DENG XIAOPING'S LIKELY SUCCESSOR SAYS SOMETHING ABOUT HOW MUCH OF ASIA IS GAINING POLITICAL MATURITY IT DOESN'T SEEM TOO LONG AGO THAT THE ENTIRE POLITICALRISK COMMUNITY BRACED FOR SOCIAL UPHEAVALS IN THE PHILIPPINES SOUTH KOREA AND OTHER ASIAN HOT SPOTS IN FACT THE PHILIPPINES HAS SURVIVED ALL THE PREDICTED CRISES AND SOUTH KOREA IS NOW A CERTIFIABLE DEMOCRACY WITH A WORKABLE ECONOMY TO BOOT EVEN SRI LANKA IS RECOVERING FROM THE EFFECTS OF THE FRATRICIDAL BLOODLETTING BETWEEN THE SINGHALESE AND THE TAMILS THAT ONCE THREATENED ITS EXISTENCE THE MAJOR DOWNSIDE TO ALL THIS IS THAT ASIA MAY HAVE DEVELOPED A BIT TOO FAST SOME OF THOSE COUNTRIES ARE NOW HURTING FROM HIGHER LABOR COSTS REPORTS WILLIAM COPLIN A SENIOR ANALYST FOR IBC USA PUBLICATIONS INC'S POLITICAL RISK SERVICES SINGAPORE AND MALAYSIA CAN'T TAKE MUCH MORE OF IT THE STANDARD ANALYSIS STILL SHOWS A FAMILIAR HIERARCHY OF COUNTRY RISKS IN POLITICAL & ECONOMIC RISK CONSULTANCY LTD'S RATINGS BASED ON SYSTEMIC AND SOCIOPOLITICAL RISKS CHINA IS AT THE TOP FOR ALL THE OBVIOUS REASONS INDONESIA TAIWAN AND OTHER NONSOCIALIST REGIMES ARE AT A LOWER PLATEAU AND HONG KONG AND SINGAPORE AT THE BOTTOM CHINA CLEARLY DESERVES ITS PROMINENCE MANY US COMPANIES THAT INVESTED THERE IN THE 1970S WERE BURNED BY UNFORESEEN POLICY SWITCHES AND OTHER PITFALLS HOWEVER CHINA IS A HIGHRISK COUNTRY ONLY COMPARED WITH OTHER ASIAN COUNTRIES MR COPLIN'S AGENCY RATES CHINA HIGHER THAN CHILE COLOMBIA KUWAIT AND NEW ZEALAND IN TERMS OF THE SAFETY OF FINANCIAL TRANSACTIONS OVER THE NEXT FIVE YEARS P&E HAS ANOTHER CHART MEASURING THE SUSCEPTIBILITY OF ASIAN COUNTRIES TO THE SHORTERTERM RISKS OF DISRUPTIVE POLITICAL CHANGES HONG KONG IS TOPS IN THIS ONE FOLLOWED BY CHINA BECAUSE OF GOV CHRIS PATTEN'S STILLUNRESOLVED QUARREL WITH BEIJING OVER HOW THE TERRITORY WILL BE RUN AFTER THE CHINESE TAKEOVER IN 1997 INVESTORS MAY APPRECIATE THIS KIND OF HARDHEARTED ADVICE BUT IT DOESN'T SHOW IN THEIR BALANCE SHEETS THEY ARE PRESENT ON THE MAINLAND IN FORCE ACCORDING TO THE BANK OF EAST ASIA IN 1991 CHINA ABSORBED 6 BILLION IN FOREIGN INVESTMENTS OR NEARLY AS MUCH AS SINGAPORE MALAYSIA AND THAILAND DID COLLECTIVELY PROCTER & GAMBLE CO SELLS MORE SHAMPOO IN CHINA THAN IN ANY OTHER COUNTRY BESIDES THE US AVON PRODUCTS INC'S SUCCESS IN SELLING COSMETICS DOORTODOOR IN CHINA ALREADY IS THE STUFF OF LEGEND THERE'S ONE INTERNAL PROBLEM THAT THESE INVESTORS HAVE TO BE CONCERNED ABOUT THOUGH THE CHINESE ECONOMY MAY BE OVERHEATING THERE HAS BEEN A 50 INCREASE IN MONEY IN CIRCULATION SAYS ROBERT BROADFOOT MANAGING DIRECTOR OF POLITICAL & ECONOMIC RISK CONSULTANCY THIS IN TURN COULD STRAIN SUPPLIES AND TRANSPORTATION NETWORKS AND PUT UPWARD PRESSURE ON PRICES INFLATION COULD CAUSE BEIJING TO PUT A GOOD NUMBER OF ITS PROJECTS ON HOLD UNTIL THE ECONOMY COOLS DOWN CURIOUSLY ENOUGH POLITICAL & ECONOMIC RISK CONSULTANCY SEES JAPAN CREATING MORE LONGTERM RISKS FOR INVESTORS THAN EITHER HONG KONG OR SINGAPORE ALL THROUGH THE 1980S JAPAN WAS THE HUB OF THE ASIAN UNIVERSE BUT LATELY IT HAS SLIPPED A BIT IN THE ESTIMATION OF MOST ANALYSTS BECAUSE OF ITS SWOONING ECONOMY COMBINED WITH A SYSTEM OF MONEY POLITICS IT MIGHT BE GOOD FOR THE COUNTRY IF THE LONGRULING LIBERAL DEMOCRATIC PARTY WERE TO LOSE AT LEAST ONCE AND OPEN THE SYSTEM TO AN INFUSION OF FRESH BLOOD SOME OF THESE CASSANDRAS SUGGEST ANOTHER KIND OF RISK THAT OVERHANGS FOREIGN INVESTORS IN ASIA IS THE PERVASIVENESS OF CORRUPTION US COMPANIES HAVE A TOUGH TIME HANDLING THIS BECAUSE OF POTENTIAL LIABILITY UNDER THE FOREIGN CORRUPT PRACTICES ACT UNFORTUNATELY THE PROBLEM CAN'T BE EASILY EVADED THE COUNTRIES THAT ARE DOING BEST ARE ALSO THE MOST CORRUPT SAYS MR RECKFORD YOU CAN'T DO ANY SERIOUS BUSINESS THERE WITHOUT LINING SOMEBODY'S POCKET THE LARGE MULTINATIONALS KNOW AND DEAL WITH THE POLITICALLY WELL CONNECTED IN THOSE COUNTRIES THEY HAVE THE HEFT AND THE PURSE TO PLAY THE PATRONAGE GAME PRESUMABLY THEY CAN BUY ENOUGH LEGAL ADVICE TO PROTECT THEIR BOARDS FROM THE REACH OF THE FOREIGN CORRUPT PRACTICES ACT IT'S THE SMALLER US COMPANIES WITHOUT MUCH LOCAL KNOWLEDGE THAT ARE MORE AT RISK 9302220030 930222 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TAIWAN'S ECONOMIC GROWTH LAST YEAR SLOWED TO AN INFLATIONADJUSTED 61 FROM 72 A YEAR EARLIER FALLING SHORT OF THE 7 TARGET IN THE GOVERNMENT'S LONGRANGE PLAN FOR NATIONAL DEVELOPMENT THE EXPANSION WAS PACED BY 9 GROWTH FOR SERVICE INDUSTRIES WHILE INDUSTRIAL PRODUCTION ROSE ONLY 45 BECAUSE OF SLOWER EXPORT GROWTH PRIVATE INVESTMENT GREW 19 THE FASTEST RATE IN THE PAST FOUR YEARS PRIVATE CONSUMPTION CLIMBED 88 GOVERNMENT SPENDING ROSE 6 GROSS NATIONAL PRODUCT EXPANDED TO 211 BILLION FROM 180 BILLION AND PER CAPITA GNP ROSE TO 10215 FROM 8788 THE MERCHANDISE AND SERVICE TRADE SURPLUS CONTRACTED TO 48 BILLION FROM 89 BILLION FOR THIS YEAR THE GOVERNMENT FORECAST ECONOMIC GROWTH OF 66 GNP OF 225 BILLION AND PER CAPITA GNP OF 10803 THE TRADE SURPLUS IS EXPECTED TO REACH 38 BILLION INFLATION IS PREDICTED AT A 36 ANNUAL RATE DOWN FROM 45 LAST YEAR CHINA BEGAN TAXING FACTORIES BASED ON HOW MUCH SULFUR DIOXIDE THEY EMIT WITH THE REVENUE TO PAY FOR AIR CLEANUP MEASURES THE LEVY INITIALLY APPLIES IN SOUTHERN PROVINCES AND IN NINE CITIES SULFUR DIOXIDE FROM COAL CHINA'S MAIN FUEL SOURCE HAS CREATED POLLUTION PROBLEMS THAT WORSENED ALONG WITH RAPID ECONOMIC DEVELOPMENT MANY PROVINCES AND CITIES TAX FACTORIES FOR EMISSIONS OF SOLID AND LIQUID WASTES AND MAY FINE EXCESSIVE POLLUTERS BUT ENTERPRISES IMPORTANT TO LOCAL ECONOMIES OFTEN ARE ALLOWED TO EVADE LEVIES AND PENALTIES SOUTH KOREAN EXPORTS LOST GROUND LAST YEAR TO ASIAN RIVALS THAT INCREASED THEIR MUSCLE IN GLOBAL MARKETS THE KOREAN TRADE AND INDUSTRY MINISTRY SAID THE COUNTRY FELL A NOTCH TO 13TH PLACE WORLDWIDE WITH EXPORTS TOTALING 766 BILLION SURPASSED BY CHINA WITH SHIPMENTS TOTALING 85 BILLION AND TAIWAN WITH 815 BILLION BEHIND SOUTH KOREA WAS SINGAPORE WITH 636 BILLION THE US TOPPED THE LIST WITH 4465 BILLION FOLLOWED BY GERMANY'S 4262 BILLION AND JAPAN'S 3398 BILLION SOUTH KOREA ESTIMATED ITS 1993 EXPORTS WILL RISE 84 TO 83 BILLION BUT STILL FACE TOUGH REGIONAL COMPETITION THE PRICE OF TROPICAL TIMBER IS SOARING AS MALAYSIA THE WORLD'S LARGEST SUPPLIER OF TROPICAL LOGS HAS CUT ITS PRODUCTION AND EXPORTS DRASTICALLY THE CUTBACKS BEGUN LAST MONTH ARE AIMED AT RESPONDING TO COMPLAINTS BY ENVIRONMENTALISTS AND THREATS OF TRADE RESTRICTIONS ON MALAYSIAN PRODUCTS BY WESTERN GOVERNMENTS THAT CRITICIZE ITS LOGGING PACE BUT MALAYSIA ALSO IS EAGER TO EXPAND OUTPUT OF VALUEADDED TIMBER PRODUCTS TO BOOST EXPORT EARNINGS THE MOVES ARE HURTING REGIONAL FORESTPRODUCTS INDUSTRIES SUCH AS PLYWOOD MAKERS WORKERS IN VIETNAM HAVE STAGED STRIKES AND PROTESTS AT SOUTH KOREANRUN FACTORIES MARRING EFFORTS TO BOOST ECONOMIC TIES IN THE BIGGEST WILDCAT STRIKE SINCE VIETNAM OPENED TO FOREIGN INVESTMENT FIVE YEARS AGO ABOUT 680 WORKERS AT A LUGGAGEMAKING JOINT VENTURE IN HO CHI MINH CITY PROTESTED WHAT THEY SAID WERE SUBSTANDARD WAGES FORCED OVERTIME AND BRUTAL TREATMENT BY THEIR KOREAN BOSSES THE CITY PLANS TO INVESTIGATE LABOR CONDITIONS AND COMPLIANCE WITH LAWS AND REGULATIONS SOUTH KOREAN INVESTORS THIS MONTH ANNOUNCED 60 PROJECTS IN VIETNAM VALUED AT 450 MILLION THE POLISH SEJM THE LOWER HOUSE OF PARLIAMENT APPROVED ADDING TOBACCO PRODUCTS TO AN ADVERTISING BAN THE MEASURE WHICH WAS SENT TO THE SENATE WOULD PROHIBIT THE ADS IN ALL MEDIA VIOLATORS COULD FACE FINES OR SHORT JAIL TERMS THOUGH ADS FOR ALCOHOLIC BEVERAGES HAVE BEEN BARRED SINCE 1982 POLISH AND WESTERN CIGARETTES HAVE BEEN WIDELY ADVERTISED IN THE COUNTRY JAPAN PLANS SCIENTIFIC STUDY OF SOCALLED NEW AGE PHENOMENA SUCH AS PSYCHIC POWERS IN HOPES OF FINDING APPLICATIONS USEFUL TO THE NEXT GENERATION OF INDUSTRY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY INTENDS TO FORM A RESEARCH INSTITUTE PROBABLY IN 1995 FOR STUDY OF ART CULTURE AND PARAPSYCHOLOGY INCLUDING TELEPATHY AND CLAIRVOYANCE THE INSTITUTE WAS PROPOSED BY AN MITI PANEL EXAMINING SENSITIVITY TO HUMAN NEEDS FOR ART INNER PEACE AND OTHER INTANGIBLES THE PANEL IS ACCUMULATING DATA ON EFFECTS OF CULTURAL ACTIVITIES SUCH AS TEA CEREMONIES AND FLOWER ARRANGING ON PEOPLE'S STATE OF MIND AS INDICATED BY BRAINWAVE AND OTHER EXAMINATIONS IT ALSO INTENDS TO EXAMINE PEOPLE WHO CLAIM EXPERIENCE WITH PARAPSYCHOLOGICAL AND OCCULT PHENOMENA LONG IGNORED OR DISMISSED BY THE SCIENTIFIC COMMUNITY AS AN EXAMPLE OF THE SORT OF RESEARCH RESULTS THAT THEY WILL RECOMMEND TO MANUFACTURERS MITI OFFICIALS SAID THAT CONSUMERELECTRONICS COMPANIES MIGHT MANUFACTURE A RELAXATION DEVICE EMITTING SUPERSONIC WAVES THAT GIVE THE ILLUSION OF SITTING IN A FOREST CHINA'S POPULATION LAST YEAR GREW 12 TO 117 BILLION FROM A YEAR EARLIER THE INCREASE ABOUT 135 MILLION ALMOST EQUALS THE NUMBER OF PEOPLE WHO LIVE IN FLORIDA FOUR OUT OF EVERY 10 BRITISH TEENAGERS ENTERING COLLEGE READ AND DO MATH BELOW GRADE LEVEL ACCORDING TO A UK STUDY EDUCATION SECRETARY JOHN PATTEN SAID THE SURVEY OF 10000 STUDENTS AGED 16 TO 19 REVEALED AN UNACCEPTABLE PICTURE CHINA'S POPULATION ROSE 12 LAST YEAR TO 117 BILLION FROM A YEAR EARLIER IN YESTERDAY'S WORLD WIRE COLUMN THE PERCENTAGE WAS MISSTATED AS 12 9302220029 930222 TRUMP BANKERS AGREE ON PLAN TO CUT HIS DEBT CASINO REFINANCING IS PART OF PROPOSAL FOR ENDING SUPERVISION BY LENDERS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL DONALD TRUMP HAS CUT A DEAL WITH HIS BANKERS THAT HE HOPES WILL GET HIM OUT OF PERSONAL DEBT WITHIN TWO YEARS AND EFFECTIVELY END BANK SUPERVISION OF HIS BUSINESS ACTIVITIES THE NEW YORK REAL ESTATE DEVELOPER PLANS TO PULL 50 MILLION OUT OF A PLANNED CASINO REFINANCING TO RETIRE ABOUT 95 MILLION IN PERSONAL BANK DEBT AND HIS LENDERS HAVE AGREED TO ALLOW HIM TO PAY DOWN THE REMAINING 95 MILLION FOR 50 TO 66 OF FACE VALUE OVER THE NEXT TWO YEARS ACCORDING TO TWO INDIVIDUALS FAMILIAR WITH THE PROPOSAL IF THE REFINANCING OF TRUMP PLAZA CASINO IS SUCCESSFUL MR TRUMP WILL BEGIN REDUCING A MAJOR IMPEDIMENT TO HIS FUTURE BUSINESS ACTIVITIES ABOUT 190 MILLION IN PERSONALLY GUARANTEED DEBT LEFT OVER FROM HIS MASSIVE 1991 RESTRUCTURING THAT DEBT WHICH COMES DUE IN MID1995 CARRIES LIENS ON MOST OF HIS ASSETS A COMPLETE CLEANUP OF HIS PERSONAL BALANCE SHEETS HOWEVER WILL DEPEND ON CONTINUED IMPROVEMENTS IN HIS THREE ATLANTIC CITY NJ CASINOS MR TRUMP WHO IS BARRED BY LAW FROM DISCUSSING THE REFINANCING UNTIL IT IS COMPLETED HAS TOLD ASSOCIATES THAT HE HOPES TO RAISE ADDITIONAL CAPITAL TO RETIRE HIS REMAINING PERSONAL DEBT BY REFINANCING ONE OR BOTH OF HIS OTHER CASINOS THOSE PROPERTIES HOWEVER ARE ALREADY CARRYING AS MUCH DEBT AS THEY CAN SEVERAL ANALYSTS MAINTAINED HIS CURRENT DEBTREDUCTION AGREEMENT IS CONTINGENT ON THE SALE OF 325 MILLION IN NEW TRUMP PLAZA FIRST MORTGAGE BONDS AND AT LEAST 25 MILLION OF A 50 MILLION OFFERING OF NEW UNSECURED SUBORDINATED NOTES MOST OF THE PROCEEDS WILL BE USED TO PAY OFF 225 MILLION IN EXISTING BONDS AND TO BUY BACK 75 MILLION IN PREFERRED SHARES TRUMP ORGANIZATION OFFICIALS REGISTERED THE OFFERING FRIDAY AFTERNOON WITH THE SECURITIES AND EXCHANGE COMMISSION THE FILING DID NOT DISCLOSE THE ANTICIPATED INTEREST RATES ON THE NEW ISSUES BUT ONE BOND ANALYST FAMILIAR WITH THE TRUMP ORGANIZATION'S PLANS SAID THAT LEAD UNDERWRITER MERRILL LYNCH & CO HOPES TO SELL THE FIRSTMORTGAGE BONDS AT 12 TO 13 THE 5000 SUBORDINATED NOTES WHICH ALLOW INTEREST PAYMENT IN THE FORM OF NEW SECURITIES MAY CARRY A COUPON OF ABOUT 15 EACH WILL ALSO CARRY A WARRANT FOR ONE NEW 1000 NOTE AT A FUTURE DATE IN MY VIEW THAT'S A FULL LEVERAGING OF THE PROPERTY BUT IT'S NOT EXCESSIVE SAID STEVEN PATRICOLA A BOND ANALYST AT CITICORP REFLECTING A VIEW SHARED BY TWO OTHER ANALYSTS IN THIS MARKET CARRYING THOSE INTEREST RATES I THINK IT WILL BE WELLRECEIVED USING TRUMP PLAZA'S 1992 CASH FLOW OF 60 MILLION A COMMONLYUSED MULTIPLIER WOULD VALUE THE PROPERTY AT ABOUT 330 MILLION 45 MILLION LESS THAN THE PROPOSED NEW DEBT ANALYST LAWRENCE KLATZKIN OF PRUDENTIAL SECURITIES INC SAYS THE DEAL WILL HAVE TO BE SOLD BASED ON PROJECTED 1993 CASH FLOW IN THE EVENT THAT MR TRUMP IS UNABLE TO SELL ALL OF THE SUBORDINATED DEBT THE BANK GROUP HOLDING MR TRUMP'S PERSONAL DEBT WHICH INCLUDES THE MAIN BANKING UNITS OF BANKERS TRUST NEW YORK CORP CITICORP CHASE MANHATTAN CORP CHEMICAL BANKING CORP AND NATIONAL WESTMINSTER BANK PLC'S US UNIT HAS AGREED TO ACCEPT AS MUCH AS 25 MILLION IN NOTES IN LIEU OF CASH IT HAS ALSO AGREED TO PERMIT MR TRUMP TO PAY DOWN PERSONAL DEBT WITH EXPECTED PROCEEDS FROM FUTURE SALES OF TRUMP TOWER CONDOMINIUMS BEFORE HIS NEAR BRUSH WITH BANKRUPTCY TWO YEARS AGO WHICH LED HIM TO SURRENDER SUCH PRIZED ASSETS AS THE TRUMP SHUTTLE AIRLINE HIS PERSONAL LIABILITY EXCEEDED 900 MILLION IN A SEPARATE DEVELOPMENT LAST WEEK MR TRUMP SAID THAT HE INTENDED TO CONVERT HIS 100000 SQUARE FOOT MARALAGO MANSION IN PALM BEACH FLA INTO THE MOST EXCLUSIVE CLUB IN THE WORLD IN ADDITION TO THE DEBT HE HOPES TO REDUCE THROUGH THE REFINANCING MR TRUMP ALSO CARRIES A MORTGAGE OF MORE THAN 210 MILLION WITH CHASE WHICH COMES DUE THIS YEAR ON A HUGE UNDEVELOPED TRACT OF ABANDONED RAIL YARDS ON MANHATTAN'S WEST SIDE 9302220028 930222 BUSINESS BRIEF BROWN & SHARPE MANUFACTURING CO MACHINE TOOL MAKER RECORDS 4THQUARTER LOSS ON A CHARGE BROWN & SHARPE MANUFACTURING CO REPORTED A FOURTHQUARTER LOSS OF 38 MILLION OR 78 CENTS A SHARE AFTER TAKING A 71 MILLION RESTRUCTURING CHARGE RELATED TO ITS EUROPEAN FACILITIES IN THE YEAR AGO QUARTER BROWN & SHARPE REPORTED NET INCOME OF 474000 OR 10 CENTS A SHARE SALES FELL 96 TO 444 MILLION FROM 491 MILLION THE NORTH KINGSTOWN RI MACHINE TOOL MAKER SAID THAT INCOMING ORDERS IN THE FOURTH QUARTER ROSE 19 TO 50 MILLION FROM 42 MILLION IN THE YEAR AGO QUARTER CHARLES JUNKUNC CHIEF FINANCIAL OFFICER SAID THAT THE EUROPEAN ACTIONS INCLUDE CONSOLIDATING FACILITIES WHICH HAVE EXPANDED DURING A SPATE OF ACQUISITIONS OF SMALL EUROPEAN COMPANIES FOR THE YEAR BROWN & SHARPE REPORTED A LOSS OF 85 MILLION OR 174 A SHARE COMPARED WITH A LOSS OF 4 MILLION OR 86 CENTS A SHARE SALES FELL 91 TO 1599 MILLION FROM 1758 MILLION 9302220027 930222 BUSINESS BRIEF UNITED BISCUITS HOLDINGS PLC BRITISH FOOD FIRM CONSIDERS SELLING ITS CHOCOLATE UNIT UNITED BISCUITS HOLDINGS PLC CONFIRMED IT IS CONSIDERING SELLING ITS TERRY'S CHOCOLATE UNIT THE BRITISH FOOD MANUFACTURER SAID IN LONDON THAT SEVERAL PARTIES HAVE EXPRESSED AN INTEREST IN ACQUIRING THE CONFECTIONARY UNIT UNITED BISCUITS IS CURRENTLY CONSIDERING ITS POSITION AND IF APPROPRIATE A FURTHER STATEMENT WILL BE MADE THE COMPANY SAID THE STATEMENT FOLLOWED REPORTS IN THE FINANCIAL TIMES AND TIMES NEWSPAPERS THAT UNITED BISCUITS IS TRYING TO SELL TERRY'S IN AN EFFORT TO CUT DEBT AND FUND FURTHER ACQUISITIONS UNITED BISCUITS DECLINED TO NAME ANY POSSIBLE BUYERS BUT THE FINANCIAL TIMES REPORTED THAT THE COMPANY HAS BEEN IN TALKS FOR SEVERAL WEEKS WITH A NUMBER OF PARTIES INCLUDING THE US TOBACCO AND FOOD CONGLOMERATE PHILIP MORRIS COS OTHER POTENTIAL BUYERS ARE REPORTED TO INCLUDE HERSHEY FOODS CORP OF THE US 9302220026 930222 HEARD ON THE STREET STUDENT LOAN MARKETING STILL GETS GOOD GRADE FROM ANALYST DESPITE ITS PLUNGE LAST WEEK BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL LAST WEDNESDAY ON THE MORNING OF PRESIDENT CLINTON'S BIG SPEECH MABON SECURITIES INITIATED COVERAGE OF STUDENT LOAN MARKETING ASSOCIATION OR SALLIE MAE WITH A BUY RECOMMENDATION THE STOCK WAS TRADING AT 56 5/8 THEN THE ROOF FELL IN THE DAY AFTER THE SPEECH SALLIE MAE PLUNGED 9 3/8 TO 47 1/4 IT FELL ANOTHER 7/8 FRIDAY INVESTORS BAILED OUT OVER THE PRESIDENT'S PLAN TO LET COLLEGE STUDENTS BORROW DIRECTLY FROM THE US TREASURY BY 1997 RATHER THAN THROUGH BANKS THEY FEARED DEVASTATION FOR SALLIE MAE THE BIGGEST HOLDER OF STUDENT LOANS WHICH MERRILY COLLECTS INTEREST ON ITS 24 BILLION STUDENTLOAN PORTFOLIO IT BECAME A SHARK FRENZY COMPLAINS E GARETH PLANK THE MABON ANALYST WHO MADE THE UNFORTUNATELY TIMED CALL BUT DON'T EXPECT ANY APOLOGIES FROM MR PLANK WHO'S IN MABON'S SAN FRANCISCO OFFICE HE SAYS HE IS MORE CONVINCED THAN EVER THAT SALLIE MAE HAS A GOOD FUTURE AT LEAST FOR SEVERAL YEARS LAST WEEK'S PLUNGE WAS CLEARLY AN OVERREACTION HE INSISTS AND THE MARKET IS DISCOUNTING A WORSTCASE SCENARIO THAT HASN'T BEEN LEGISLATED YET AFTER ALL SAY SALLIE MAE'S FEW REMAINING DEFENDERS THIS IS A STOCK THAT WAS FLYING HIGH AT 76 NOT TOO LONG AGO HOW CAN IT SUDDENLY BE SUCH A LEPER THIS COMPANY HAS A LIQUIDATION VALUE OF 50 A SHARE SO IN MY MODEL IT'S A BUY SAYS MR PLANK MR PLANK SAYS PEOPLE ARE PUTTING TOO MUCH FAITH IN CONGRESS DON'T COUNT ON A REVOLUTION IN STUDENT LENDING THAT WILL HURT SALLIE MAE HE SAYS BECAUSE SALLIE MAE HAS MANY FRIENDS ON CAPITOL HILL AND PERFORMS A SERVICE AND I THINK IT'LL BE QUITE A SELL FOR MR CLINTON TO CONVINCE THE WORLD THAT THE GOVERNMENT WILL DO A BETTER JOB OF LOANSERVICING THAN THE PRIVATE SECTOR WHAT ABOUT THE SLOWDOWN IN THE COLLEGE POPULATION DEMOGRAPHICS HAVE ALWAYS LOOKED TERRIBLE FOR STUDENT LENDING RESPONDS MR PLANK HE SAYS THE DROPOFF IN YOUNG PEOPLE BORROWING MONEY TO GO TO SCHOOL WILL BE PARTIALLY OFFSET BY INCREASING NUMBERS OF OLDER FOLKS GOING BACK TO SCHOOL TO IMPROVE THEIR RESUMES HE ANTICIPATES SALLIE MAE EARNINGS OF 490 A SHARE FOR THIS YEAR UP FROM 421 IN 1992 MR PLANK IS EITHER BRAVER OR MORE STUBBORN THAN MOST OTHERS ON WALL STREET WHO LOOK AT SALLIE MAE OTHER ANALYSTS AND INVESTORS SEE LONGTERM PROBLEMS WITH THIS UNUSUAL COMPANY APART FROM THE WORRIES ABOUT DIRECT STUDENT LOANS BY THE GOVERNMENT MOST IMPORTANT THE COLLEGE POPULATION ISN'T GROWING AS IT USED TO SO IT'S ANYBODY'S GUESS HOW SALLIE MAE WILL BE ABLE TO MAINTAIN ITS PROFITS IN COMING YEARS ANALYSTS AT MERRILL LYNCH GOLDMAN SACHS SMITH BARNEY AND OTHERS ALL PULLED BACK FROM THE STOCK IN RECENT DAYS THESE ANALYSTS SAY TRYING TO HANDICAP WHAT CONGRESS WILL DO IS A BUSINESS THEY DON'T WANT ANY PART OF IT'S REALLY A HIGHRISK SITUATION SAYS MICHAEL HUGHES OF MERRILL LYNCH WHO MOVED HIS SALLIE MAE RATING FROM A WEAK BUY TO HOLD IT'S REALLY NOT A WIDOWSANDORPHANS STOCK ANY MORE AND IT USED TO BE ALTHOUGH HE STILL SEES LONGTERM VALUE IN SALLIE MAE NO MATTER WHAT HAPPENS WITH THE DIRECTLOAN IDEA THE STOCK IS SIMPLY TOO FLUID TO TOUCH FOR NOW NO INSTITUTIONAL INVESTOR KNOWS THAT BETTER THAN LINCOLN CAPITAL MANAGEMENT IN CHICAGO WHICH AS OF A RECENT TABULATION WAS SALLIE MAE'S BIGGEST HOLDER WITH A 5 STAKE IF IT STILL HOLDS THAT POSITION IT LOST MORE THAN 60 MILLION JUST LAST WEEK THE FIRM DECLINED TO COMMENT DESPITE THE EMBARRASSMENT OF PUTTING OUT A BUY RECOMMENDATION BEFORE A 17 DROP IN SALLIE MAE MR PLANK SAYS HE WOULD DO THE SAME THING AGAIN THE DIRECTLOAN IDEA SIMPLY WASN'T ANYTHING NEW HE INSISTS OBVIOUSLY HE ADDS I UNDERESTIMATED JUST HOW FAR BEHIND THE MARKET WAS ON WHAT CLINTON WAS GOING TO SAY 9302220025 930222 DIVIDEND NEWS ANGELES RELATED TRUST HALT MONTHLY PAYOUT DUE TO TIGHT FUNDS LOS ANGELES ANGELES CORP AND ANGELES MORTGAGE INVESTMENT TRUST SAID THE REAL ESTATE TRUST'S 167CENT MONTHLY DIVIDEND HAS BEEN SUSPENDED DUE TO LIQUIDITY PROBLEMS ANGELES A REAL ESTATE INVESTMENT CONCERN HOLDS ABOUT 18 OF THE CLASS A SHARES OF STOCK IN THE TRUST AN OFFSHOOT OF ANGELES AND HAS PROVIDED THE TRUST WITH GUARANTEES THAT IT WILL HELP PAY THE DIVIDEND AND REPAY SOME LOANS TO THE TRUST HOWEVER ANGELES SAID IT HAS NOTIFIED THE TRUST THAT IT IS PRESENTLY UNABLE TO FULFILL GUARANTEES TO THE TRUST A STATEMENT ISSUED BY THE TRUST SAID IT HOLDS 35 MILLION IN LOANS ABOUT 40 OF ITS LOAN PORTFOLIO THAT ARE NOT BEING REPAID ANGELES SAID THAT PARTNERSHIPS FORMERLY AFFILIATED WITH ANGELES HAVE BEEN UNABLE TO REPAY THEIR DEBTS TOUCHING OFF A SERIES OF FINANCIAL PROBLEMS ANGELES ALSO SAID ITS LIQUIDITY PROBLEMS HAVE WORSENED BECAUSE IT CAN'T SELL OR REFINANCE SOME REAL ESTATE ASSETS IN DEPRESSED MARKETS OFFICIALS OF THE COMPANY TRUST AND PARTNERSHIPS ARE EXPLORING A PROSPECTIVE RESTRUCTURING OF THE OBLIGATIONS INVOLVED AND TALKS WITH OTHER MAJOR CREDITORS ARE EXPECTED TO BEGIN SHORTLY ANGELES SAID IT WILL REPORT A SIGNIFICANT LOSS WHEN ITS LATEST QUARTERLY RESULTS ARE FILED TODAY 9302220023 930222 GLOBAL VIEW MR SMITH GOES TO BOURNEMOUTH TO KILL SOCIALISM BY GEORGE MELLOAN IT IS APPROPRIATE THAT SOCIALISM SHOULD HAVE RETURNED HOME TO DIE IN THE ENGLAND WHERE ITS MOST EXTREME MODERN VERSION WAS LAUNCHED BY KARL MARX 129 YEARS AGO THE COUP DE GRACE WAS ADMINISTERED LATE LAST MONTH BY BRITAIN'S NEW LABOR PARTY LEADER JOHN SMITH IN A SPEECH TO LABORITE LOCAL COUNCILORS IN BOURNEMOUTH OFFERING WHAT HE CALLED MOOD MUSIC TO MAKE IT CLEAR THAT HE WAS NOT YET ENUNCIATING A NEW MANIFESTO MR SMITH SAID THAT LABOR SHOULD HENCEFORTH STAND FOR THE ASPIRATIONS AND ADVANCEMENT OF INDIVIDUAL PEOPLE MOOD MUSIC OR NOT YOU CAN'T BE MUCH CLEARER THAN THAT FOR MOST OF THOSE 129 YEARS INDIVIDUALISM HAS BEEN DEPLORED BY FABIANS BOLSHEVIKS MAOISTS AND ASSORTED OTHER SOCIALISTS AS A LICENSE FOR THE EXPLOITATION OF THE MASSES BY INDIVIDUALISTIC ROBBER BARONS GENERATIONS OF RUSSIAN KIDS WERE TAUGHT THE EVILS OF CAREERISM WHICH EXPLAINS WHY RUSSIANS HAVE TROUBLE WITH SELFEXPRESSION TODAY THE SOCIALIST ANTIDOTE WAS COLLECTIVISM BUT NOW MR SMITH LEADER OF A POLITICAL PARTY WITH NEARLY A CENTURY OF SOCIALIST TRADITIONS HAS REHABILITATED INDIVIDUALISM THE BRITISH PRESS WAS QUICK TO SPOT THIS APOSTASY CITIZEN SMITH ENDS LABOUR BACKING FOR STATE CONTROL TRUMPETED THE TIMES IN A FRONTPAGE BANNER LABOUR SHOWN A NEW PATH BY SMITH SHOUTED THE TELEGRAPH BRITISH LEFTISTS GOT THE MESSAGE TOO AMONG THOSE DISPLEASED WAS MP TONY BENN WHO HAS SACRIFICED A LOT INCLUDING A HEREDITARY PEERAGE FOR HIS FABIAN BELIEFS OVER THE PAST 40 YEARS HE FUMED TO BBC RADIO THAT THE SPEECH SEEMED NOT JUST TO ABANDON SOCIALISM BUT TO REPUDIATE SOCIAL DEMOCRACY PERHAPS THE REAL DIFFERENCE BETWEEN MR SMITH AND MR BENN IS THAT MR SMITH WOULD LIKE TO WIN ELECTIONS AGAIN SOMEDAY HE HAS NO DOUBT NOTICED THAT THE ONCEPOWERFUL CITADEL OF INTERNATIONAL SOCIALISM THE SOVIET UNION NO LONGER EXISTS THE WORD SOCIAL STILL HAS THE GENTEEL PATINA THAT THE BRITISH FABIANS IMPARTED TO IT IN THE LATE 19TH CENTURY AND SO IT WILL CONTINUE TO BE EMBRACED AS AN ACCEPTABLE LABEL BUT AS THE TIMES DISCERNED IT NO LONGER STANDS FOR A FIRM CONVICTION THAT THE STATE IN THEORY REPRESENTING THE PEOPLE SHOULD OWN THE MEANS OF PRODUCTION THAT WAS THE GUTS OF MARXIST SOCIALISM AND THE UTOPIAN VISION COMMUNISM THAT DERIVED FROM IT TODAY PRIVATIZATION IS THE WATCHWORD IN THOSE LANDS WHERE THE SOVIETS ONCE REIGNED NOT TO MENTION THE BOOMING FRINGES OF COMMUNIST CHINA AND EVEN IN THE LABYRINTHS OF THE ITALIAN POLITICAL SYSTEM IT TOO CAN CLAIM BRITISH ORIGINS WITH MARGARET THATCHER'S 1980S SELLOFF OF DECREPIT INDUSTRIES THAT HER LABORITE PREDECESSORS HAD SEIZED HER TORY PARTY BENEFITING FROM THE ECONOMIC REVITALIZATION THAT RESULTED HAS BEEN IN CONTROL OF THE BRITISH GOVERNMENT NEARLY 14 YEARS AND MOST LIKELY WILL BE FOR SEVERAL YEARS MORE ONE OF THE WONDERS OF THE BRITISH POLITICAL SYSTEM HAS BEEN ITS ABILITY TO ACCOMMODATE DIVERSE POLITICAL TENDENCIES WITHOUT BEING RADICALIZED BY ANY OF THEM ROBERT OWEN'S 1830S VISION OF A KINDER GENTLER SOCIETY WAS AN APPROPRIATE RESPONSE TO THE APPALLING CONDITIONS OF LIFE THAT RESULTED WHEN THE MACHINES OF THE INDUSTRIAL REVOLUTION PULLED WORKERS AWAY FROM THEIR FARMS AND SHOPS AND CONCENTRATED THEM INTO GRIMY FACTORIES AND FACTORY TOWNS BUT ALTHOUGH KARL MARX'S INTERNATIONAL WORKING MEN'S SOCIETY OR FIRST INTERNATIONAL WAS BORN IN LONDON IN 1864 WITH THE GOAL OF EMPOWERING THE PROLETARIAT RADICAL MARXISM NEVER CAUGHT ON IN ENGLAND THE LABOR PARTY HAS ADHERED TO BRITISH DEMOCRATIC TRADITIONS INDEED ITS PRAGMATISM SOMETIMES HAS CONQUERED IDEOLOGY ONE OF LABOR'S SOTTO VOCE APPEALS FOR VOTES IN THE HAROLD WILSON ERA OF THE 1960S WAS THE SUGGESTION THAT IT COULD BETTER TAME THE ANARCHIC TENDENCIES OF BRITISH UNIONS THAN COULD A TORY GOVERNMENT BUT NATIONALIZATIONS ONLY COMPOUNDED THE BRITISH DISEASE COMPELLING WORKERS TO STRIKE AGAINST THE GOVERNMENT ITSELF IN PART BECAUSE GOVERNMENT'S INFLATIONARY POLICIES WERE DESTROYING PURCHASING POWER AND SAVINGS MRS THATCHER DIDN'T INTRODUCE INDIVIDUALISM BUT THROUGH PRIVATIZATION SHE BROUGHT BRITISH WORKERS THE BENEFITS OF MODERN CORPORATE ORGANIZATION WITH ITS THRUST TOWARD EFFICIENCY HIGHER VALUE PRODUCTS HIGHER SKILLS IMPROVED WORKING CONDITIONS AND BETTER PAY BY CONTRAST THE BRITISH LABOR PARTY HAS BEEN SLOW TO RESPOND TO THE POLITICAL DEMANDS OF A NEW WORLD IN WHICH SERVICE AND HIGHTECH INDUSTRIES PLAY AN INCREASINGLY DOMINANT ROLE CLAUSE 4 OF THE LABOR CONSTITUTION STILL COMMITS THE PARTY TO DELIVERING TO WORKERS THE FULL FRUITS OF THEIR LABOR THROUGH COMMON OWNERSHIP OF THE MEANS OF PRODUCTION DISTRIBUTION AND EXCHANGE BUT AMERICAN WORKERS HAVE SUCCEEDED BETTER AT GAINING CONTROL OF THE MEANS OF PRODUCTION THROUGH PRIVATE COLLECTIVE BARGAINING AGREEMENTS SETTING UP LARGE PENSION FUNDS THESE FUNDS NOW OWN A HUGE CHUNK OF THE SHARES OF MULTINATIONAL COMPANIES BUT BACK TO THE SPEECH WE KNOW WHAT MR SMITH WAS RENOUNCING WHAT IS NOT ENTIRELY CLEAR IS WHAT HE IS EMBRACING USING RHETORIC REMINISCENT OF THE CAMPAIGN THEMES OF BILL CLINTON HE SAID HIS PARTY MUST BE ABOUT THE ADVANCE OF INDIVIDUAL PEOPLE ABOUT THEIR FREEDOM AND AUTONOMY ABOUT THEIR CAPACITY TO PROSPER IN SPECIFIC TERMS HE SEEMED TO BE SUGGESTING THAT LABOR WOULD SET ABOUT TO DEVOLVE SOME OF THE CENTRAL GOVERNMENT'S POWER TO LOWER LEVELS OF ADMINISTRATION THE LOCAL COUNCILORS IN HIS AUDIENCE MIGHT EITHER HAVE FOUND THAT APPEALING OR FRIGHTENING DEPENDING A GREAT DEAL ON HOW MUCH DIFFICULTY THEY ARE HAVING MEETING THE RESPONSIBILITIES THEY HAVE NOW HIS REFERENCE TO GRANTING INDIVIDUAL CITIZENS THE FREEDOM AND AUTONOMY TO PROSPER IS SOMETHING AMERICA'S SUPPLYSIDE MOVEMENT WOULD APPLAUD BUT AS TORIES WERE QUICK TO POINT OUT MR SMITH MAY BE IN FAVOR OF GREATER FREEDOM AND AUTONOMY BUT HE ALSO WAS ONE OF THE AUTHORS OF LABOR'S PROPOSALS FOR HIGHER TAXES WHICH HELPED LABOR LOSE LAST YEAR'S GENERAL ELECTION AT LEAST HE FORTHRIGHTLY MOOTED HIGHER TAXES BEFORE THE ELECTION AND NOT AFTERWARD AS WE NOW KNOW TO BE THE CASE IN THE CLINTON ADMINISTRATION AS TO MR SMITH'S REFERENCE TO A CREATIVE PARTNERSHIP BETWEEN THE PUBLIC AND PRIVATE SECTORS THAT SOUNDS LIKE INDUSTRIAL POLICY AND NOT AT ALL LIKE A PRESCRIPTION FOR LETTING PRIVATE INDIVIDUALS DO THEIR THING THE TIMES BEST SUMMED IT UP WITH AN EDITORIALPAGE CARTOON DEPICTING BOTH MR SMITH AND JOHN MAJOR FINGERS TO LIPS PONDERING THE VISION THING BUT WHILE THE FUTURE IS FUZZY ONE THING IS CERTAIN SOCIALISM AS WE HAVE KNOWN IT HAS BEEN LAID TO REST IN ENGLAND BESIDE THE BONES OF ITS MOST POWERFUL ADVOCATE KARL MARX AT LEAST UNTIL IT IS BORN AGAIN 9302220022 930222 SHORT INTEREST ON BIG BOARD INCREASES 3 AMEX POSTS RISE OF 77 LARGEST POSITIONS HELD IN SPRINT AND DISNEY BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE 3 AT MIDFEBRUARY AFTER DROPPING NEARLY 8 THE PRIOR MONTH TO BELOW THE BILLIONSHARE MARK THE EXCHANGE'S MONTHLY SHORT INTEREST TOTAL HAD REACHED THE RECORD BILLIONSHARE LEVEL AT MIDDECEMBER THE MONTHLY TOTAL HAS BEEN ABOVE 900 MILLION SHARES SINCE LAST AUGUST SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 77 DESPITE THE HISTORIC LEVELS OF RECENT MONTHS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS SPRINT CORP WAS THE COMPANY WITH THE LARGEST SHORT POSITION NEARLY 162 MILLION SHARES AN INCREASE OF NEARLY FIVE MILLION SHARES FROM THE PRIOR MONTH WHEN IT ALSO ROSE SHARPLY ITS ACQUISITION OF CENTEL CORP IS STILL PENDING AND THE INCREASE IN SHORT INCREASE COULD BE ATTRIBUTABLE TO MERGERRELATED ARBITRAGE WALT DISNEY CO AND FEDERATED DEPARTMENT STORES INC CONTINUED TO HAVE LARGE SHORT POSITIONS DISNEY SHORT INTEREST ROSE 920000 SHARES TO A TOTAL OF 156 MILLION FEDERATED'S TOTAL FELL 14 MILLION TO 125 MILLION A LARGE SHORT INTEREST IN FEDERATED DEVELOPED IN RECENT MONTHS AFTER THE RETAILER ANNOUNCED IT WAS LIFTING TRANSFER RESTRICTIONS ON MANY OF ITS SHARES WHICH WERE IMPOSED AS PART OF ITS CHAPTER 11 REORGANIZATION EARLIER IN 1992 SHORT INTEREST IN MOTOROLA INC MORE THAN DOUBLED TO 67 MILLION SHARES IT SPLIT ITS STOCK 2FOR1 LAST MONTH THE COMPANY A LEADING MAKER OF CELLULAR PHONE EQUIPMENT HAS BEEN CONTENDING WITH RECENT REPORTS THAT SOME LABORATORY STUDIES SUGGESTED RADIATION EMITTED FROM CELLULAR PHONES COULD BE CANCERCAUSING SHORT POSITIONS IN GLOBAL MARINE INC AND KEYCORP WERE REDUCED SHARPLY GLOBAL MARINE AN OIL AND GAS DRILLER COMPLETED A DEBT RESTRUCTURING IN LATE DECEMBER ITS SHORT POSITION WAS LESS THAN 150000 SHARES COMPARED WITH 41 MILLION IN THE PRIOR MONTH KEYCORP SHORT INTEREST FELL TO 15 MILLION FROM 52 MILLION SHARES IT COMPLETED A 1 BILLION STOCKSWAP ACQUISITION OF PUGET SOUND BANCORP LAST MONTH NEW YORK STOCK EXCHANGE SHORT INTEREST ROSE AT THE FEB 12 SETTLEMENT DATE TO 959825122 SHARES FROM 931834254 AT MIDJANUARY ON THE AMEX SHORT INTEREST ROSE TO 71924249 FROM AN ADJUSTED 66730936 SHARES THE MONTH INCLUDED THE 20 TRADING DAYS THROUGH FEB 5 AT MIDFEBRUARY 1992 SHORT INTEREST VOLUME WAS 721935672 SHARES ON THE BIG BOARD AND 62598435 SHARES ON THE AMEX TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE TO RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING THE FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO FELL TO 35 FROM 415 FOR THE MIDJANUARY MONTH THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 20 TRADING DAYS WAS 274071500 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 150000 SHARES EXISTED AT MIDFEBRUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDJANUARY SEE ACCOMPANYING TABLES WSJ FEB 9302220019 930222 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK JOHN ISLEY 42 YEARS OLD WAS NAMED PRESIDENT OF THE PARAMOUNT PUBLISHING SUBSIDIARY'S PRENTICE HALL CANADA UNIT SUCCEEDING W DON CALDWELL WHO IS RETIRING PARAMOUNT COMMUNICATIONS IS AN ENTERTAINMENT AND PUBLISHING COMPANY SEPARATELY ANTHONY CASSARA 48 WAS NAMED PRESIDENT OF PARAMOUNT STATIONS GROUP COMPRISING THE MEDIA AND ENTERTAINMENT COMPANY'S SIX TELEVISION STATIONS MR CASSARA PREVIOUSLY CHAIRMAN AND MANAGING GENERAL PARTNER OF HONOLULUBASED CORAL COMMUNICATIONS SUCCEEDS JAMES BOAZ WHO RETIRED LAST FALL 9302220018 930222 LAW LEGAL BEAT REFUSAL TO IMMUNIZE YOUNGSTER SAID TO VIOLATE CHILDNEGLECT LAWS BY JUNDA WOO AND WADE LAMBERT STAFF REPORTERS OF THE WALL STREET JOURNAL DOES A PARENT'S REFUSAL TO IMMUNIZE A YOUNG CHILD VIOLATE STATE CHILDNEGLECT LAWS ONE NEW YORK JUDGE SAYS YES DRAMATIZING THE IMPORTANCE OF IMMUNIZATION AND OFFERING A POSSIBLE ENFORCEMENT MECHANISM FOR THE CLINTON ADMINISTRATION'S NEW VACCINATION PUSH BUT CHILDREN'S ADVOCATES SAY THE JUDGE'S TOUGH APPROACH APPARENTLY ONE OF THE FEW TIMES IT HAS BEEN TRIED SHOULD BE TAKEN ONLY IN EXTREME INSTANCES TYPICALLY STATE LAWS REQUIRING THAT ALL CHILDREN BE ADEQUATELY IMMUNIZED AGAINST VARIOUS DISEASES ARE ENFORCED THROUGH THE LOCAL SCHOOL SYSTEMS CHILDREN WHO HAVEN'T BEEN INOCULATED AREN'T PERMITTED TO ATTEND AND PARENTS WHO DON'T FOLLOW UP END UP RUNNING AFOUL OF MANDATORY SCHOOL ATTENDANCE LAWS IN THE NEW YORK CASE HOWEVER THE JUDGE SAID THE IMMUNIZATION REQUIREMENT CAN BE ENFORCED EVEN FOR PRESCHOOL CHILDREN ABOUT HALF OF US CHILDREN UNDER TWO YEARS OLD AREN'T IMMUNIZED ACCORDING TO FEDERAL OFFICIALS EVEN THOUGH PERIODIC IMMUNIZATIONS ARE SUPPOSED TO BEGIN WHEN A CHILD IS JUST A FEW MONTHS OLD PRESIDENT CLINTON HAS PROPOSED ALMOST DOUBLING THE 342 MILLION SPENT EACH YEAR TO IMMUNIZE CHILDREN AS WELL AS NEGOTIATING WITH DRUG MAKERS FOR CHEAPER VACCINES THE NEW YORK CASE AROSE IN 1990 WHEN NEW YORK CITY WAS EXPERIENCING A MEASLES EPIDEMIC MAINLY AMONG PRESCHOOLAGE CHILDREN AFTER A 23MONTHOLD GIRL WAS HOSPITALIZED FOR OTHER REASONS A DOCTOR RECOMMENDED THAT SHE BE VACCINATED FOR MEASLES AS WELL BUT THE FATHER REFUSED AND A SOCIAL WORKER FILED A REPORT OF SUSPECTED CHILD ABUSE BECAUSE THE VACCINATION WASN'T ALLOWED SINCE THE CASE IS IN FAMILY COURT THE FATHER AND THE CHILD KNOWN IN COURT PAPERS AS CHRISTINE M WEREN'T IDENTIFIED THE FATHER'S FAILURE TO HAVE CHRISTINE VACCINATED AGAINST MEASLES IN THE MIDST OF A MEASLES OUTBREAK OR EPIDEMIC CAUSED CHRISTINE TO BE A NEGLECTED CHILD' WITHIN THE MEANING OF THE LAW JUDGE GLORIA DABIRI IN BROOKLYN NY SAID IN HER OPINION LAST WEEK OUTSIDE OF THAT LAPSE HOWEVER THE FATHER WAS A DILIGENT LOVING AND CONCERNED PARENT THE JUDGE STRESSED THE JUDGE REJECTED THE FATHER'S CLAIM THAT HE WAS EXEMPT FROM THE LAW BECAUSE OF STRONG RELIGIOUS CONVICTIONS AGAINST VACCINATIONS SUCH AN EXEMPTION EXISTS THE JUDGE SAID BUT THE FATHER'S OBJECTIONS WERE BASED MORE ON PERSONAL BELIEFS ABOUT MEDICINE THAN ON RELIGION UNDER THE LAW A NEGLECTED CHILD CAN BE PLACED UNDER SOCIALSERVICE AGENCY SUPERVISION OR EVEN PUT IN FOSTER CARE ALTHOUGH NEITHER OCCURRED IN THIS CASE CHILDREN'SRIGHTS ADVOCATES SAID THAT THE NEW YORK RULING MADE SENSE BECAUSE THE FATHER HAD REPEATEDLY REFUSED TO VACCINATE THE CHILD BUT THAT PARENTS GENERALLY SHOULDN'T BE PUNISHED FOR FAILING TO FOLLOW THE VACCINATION REQUIREMENT IT WOULD BE A RIDICULOUS WAY TO ENFORCE IT SAID ANNE COHN DONNELLY EXECUTIVE DIRECTOR OF THE NATIONAL COMMITTEE FOR THE PREVENTION OF CHILD ABUSE A CHICAGO RESEARCH AND ADVOCACY GROUP THE ONLY REASON THAT MOST PEOPLE DON'T VACCINATE THEIR CHILDREN IS IGNORANCE LACK OF ACCESS OR LACK OF MONEY DESPITE FINDING THAT THERE WAS NEGLECT THE JUDGE IN THE NEW YORK CASE DECLINED TO ORDER THE VACCINATION BECAUSE THE MEASLES EMERGENCY HAD PASSED WHILE CLEARLY SOME RISK EXISTS THAT CHRISTINE WILL CONTRACT MEASLES THE URGENCY PREVIOUSLY CREATED BY THE EPIDEMIC OR OUTBREAK DOESN'T EXIST THE JUDGE SAID A BRONX NY PROSECUTOR'S BAN ON PLEA BARGAINING IS CREATING AN ALARMING BACKLOG OF FELONY CASES AWAITING TRIAL IN THAT NEW YORK CITY BOROUGH A JUDGE THERE SAYS THE BAN WAS IMPOSED 12 WEEKS AGO BY BRONX DISTRICT ATTORNEY ROBERT T JOHNSON BEFORE THAT MOST CASES WERE RESOLVED THROUGH AGREEMENTS UNDER WHICH PROSECUTORS DROPPED MORE SERIOUS CHARGES AGAINST A DEFENDANT IN EXCHANGE FOR GUILTY PLEAS TO LESSER COUNTS INDEED ONLY 65 OF 10141 BRONX FELONY CASES WENT TO TRIAL LAST YEAR PROPONENTS SAY THE PLEA BARGAINS IN WIDE USE NEARLY EVERYWHERE EXPEDITE PROCEEDINGS REDUCE THE BACKLOG OF TRIALS AND ASSURE THAT SOME PUNISHMENT WILL BE ASSESSED BUT MR JOHNSON IN ISSUING HIS BAN SIDED WITH OPPONENTS INCLUDING PROSECUTORS AND VICTIMS' RIGHTS ADVOCATES WHO ARGUE THAT THE PRACTICE HAS GOTTEN OUT OF HAND ALLOWING PEOPLE ACCUSED OF SERIOUS CRIMES TO ESCAPE HARSH PENALTIES THE TRACK RECORD WHERE SIMILAR BANS HAVE BEEN TRIED DETROIT AND NEW ORLEANS FOR EXAMPLE SHOW THE BANS CAN WORK WITHOUT OVERBURDENING THE COURT DOCKET WHEN PROSECUTORS TAKE STEPS TO WEED OUT WEAKER CASES RATHER THAN FORCE ALL OF THEM TO TRIAL BUT BRONX ADMINISTRATIVE JUDGE BURTON B ROBERTS SAID THAT IN ITS FIRST 12 WEEKS IN THE BRONX THE BAN HAS ALREADY SLOWED DOWN THE DISPOSITION OF FELONY CASES BY NECESSITATING MANY MORE TRIALS JUDGE ROBERTS SAID THAT THE NUMBER OF INDICTED FELONY DEFENDANTS AWAITING TRIAL HAS INCREASED BY 189 TO A TOTAL OF 4577 SINCE NOV 20 WHEN THE BAN WENT INTO EFFECT THE JUDGE SAID THAT AT THE CURRENT RATE THE BACKLOG WOULD INCREASE TO 6000 BY THE END OF THE YEAR JUDGE ROBERTS SAID THE BURGEONING BACKLOG WILL MEAN THAT IT WILL TAKE LONGER AND LONGER TO TRY CASES AND THAT DEFENDANTS IN JAIL AWAITING TRIAL WILL BE THERE MUCH LONGER HE SAID THAT AS A RESULT JUDGES WILL BE FORCED TO LOWER BAILS AND RELEASE MORE DANGEROUS PRISONERS AS A WAY OF REDUCING PRISON OVERCROWDING STEVEN REED A SPOKESMAN FOR THE BRONX DISTRICT ATTORNEY'S OFFICE SAID THAT FOR THE PAST 10 YEARS THE BACKLOG HAS SHOWN A STEADY INCREASE AND YOU CANNOT ATTRIBUTE THE GROWING BACKLOG TO THE BAN MR REED SAID THE BAN HASN'T PRODUCED ANY UNANTICIPATED PROBLEMS AND IT APPEARS TO BE WORKING TEXAS DEATH CASE THE SUPREME COURT WILL DECIDE BY JULY WHETHER A NOWDEFUNCT TEXAS DEATHPENALTY LAW UNFAIRLY LIMITED SENTENCING JURIES' CONSIDERATION OF MITIGATING EVIDENCE THE FATES OF DOZENS OF TEXAS DEATH ROW INMATES COULD BE AFFECTED THE JUSTICES FRIDAY SAID THEY WOULD REVIEW THE DEATH SENTENCE OF CONVICTED MURDERER DORSEY JOHNSON WHO KILLED A CONVENIENCE STORE CLERK IN SNYDER TEXAS SEVEN YEARS AGO WHO'S NEWS FRED FOREMAN THE US ATTORNEY IN CHICAGO SINCE AUGUST 1990 SAID HE PLANS TO RESIGN APRIL 5 AND WILL JOIN THE CHICAGO LAW FIRM OF FREEBORN & PETERS MR FOREMAN 44 HAD SERVED THREE TERMS AS A STATE'S ATTORNEY IN SUBURBAN LAKE COUNTY BEFORE BEING TAPPED BY THE BUSH ADMINISTRATION TO SUCCEED ANTON VALUKAS AS TOP PROSECUTOR FOR THE NORTHERN DISTRICT OF ILLINOIS ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9302220017 930222 FOR THESE TOMS GOBBLEGOBBLE' ISN'T GOOD ENOUGH AT A TURKEYCALLING CONTEST COMPETITORS MUST MASTER CLUCK CUT AND KEEKEE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LOUISVILLE KY WALTER PARROTT A 37YEAROLD BRICK MASON FROM MISSOURI IS THE PLACIDO DOMINGO OF TURKEY CALLING MR PARROTT IS A THREETIME GRAND NATIONAL WILD TURKEY CALLING CHAMPION THIS PAST WEEKEND HE CAME HERE TO DEFEND HIS CROWN AGAINST A FLOCK OF YOUNG TURKS AND A COUPLE OF OLDER ONES HOPING TO UPSET THE PECKING ORDER A CROWD OF 1300 DRESSED IN CAMOUFLAGE SUITS AND BASEBALL CAPS AND AS SILENT AS A GOLF GALLERY HAS GATHERED INSIDE THE CONVENTION CENTER HERE TO LISTEN TO HIM AND OTHERS CACKLE CUT YELP PURR CLUCK AND KEEKEE SOME CALLERS WILL CROUCH AND STRUT ABOUT LIKE TURKEYS IT'S HIGH PRESSURE SAYS CHRIS KIRBY ONE JITTERY COMPETITOR IT'S LIKE THE SUPER BOWL THEY HAVE REASON TO BE SERIOUS THEY ARE SPONSORED BY VARIOUS COMPANIES THAT MAKE TURKEYCALLING DEVICES SUCH AS QUAKER BOY INC IN ORCHARD PARK NY AND HUNTER'S SPECIALTIES IN CEDAR RAPIDS IOWA THE CALLERS STAND TO REAP AS MUCH AS 5000 FROM THEIR SPONSORS IF THEY WIN THE WINNER CAN ALSO USE THE TITLE TO SOLICIT BUSINESS AS A GUIDE FOR LESS VOCAL HUNTERS WILLING TO PAY 300 A DAY FOR THEIR SERVICES THE COMPETITORS DRAWN FROM THE RANKS OF FIREFIGHTERS WELDERS AND FARMERS ARE ALL HUNTERS THEY KNOW THAT THEY CAN'T GET A TURKEY WITHOUT USING A FEW FOWL SOUNDS AND WHILE MOST RUGGED OUTDOORSMEN FIND IT AWKWARD TO ACT LIKE FEMALE TURKEYS IN HEAT THAT IS WHAT THEY MUST DO TO GET A GOBBLER YOU'VE GOT TO THINK LIKE A TURKEY SAYS CALLER VON EUBANKS OF DERMOTT ARK YOU'VE GOT TO ACT LIKE A TURKEY ADDS MATT MORRETT A CALLER FROM HARRISBURG PA THE COMPETITION BEGINS WITH A PRAYER OF THANKS FOR THE GOBBLE OF THE WILD TURKEY A FELLOW IN A COWBOY HAT SINGS THE UNOFFICIAL TURKEYHUNTER THEME SONG GOBBLIN' FEVER THE CONTESTANTS WARM UP CREATING A CACOPHONY OF CHIRPS CLUCKS AND GOBBLES THAT MAKES THE PLACE SOUND LIKE A CHICKEN COOP AFTER THE FOX ENTERS THE 60 CONTESTANTS WILL BE JUDGED ON TONE VERSATILITY AND MOST OF ALL TURKEY RHYTHM IF YOU'VE GOT TURKEY RHYTHM YOU CAN CALL A TURKEY SAYS EARL GROVES A COMPETITION JUDGE HE DEMONSTRATES WITH A SERIES OF RAPID YELPS HE WILL HELP DECIDE WHICH WINNERS GET SHOTGUNS FROM THE NATIONAL WILD TURKEY FEDERATION EDGEFIELD SC AND TROPHIES FROM WILD TURKEY BOURBON MADE BY AUSTIN NICHOLS & CO IN NEW YORK JUST WHAT MAKES THE PERFECT TURKEY CALL IS HARD TO SAY SINCE SOME TURKEYS AREN'T SO GOOD AT IT THEMSELVES THESE GUYS ARE MUCH BETTER THAN TURKEYS SAYS MR GROVES TURKEYS MAKE A LOT OF MISTAKES SOMETIMES WHILE HUNTING MR GROVES HAS HEARD WHAT HE THOUGHT WAS A BAD TURKEY CALLER BUT IT TURNED OUT TO BE A REAL TURKEY I'D GIVE THAT HEN A TWO OUT OF 20 HE SAYS THIS OF COURSE IS BECAUSE TURKEYS DON'T PRACTICE AS MUCH AS HUMANS OR USE CALLING DEVICES LARRY NORTON OF PENNINGTON ALA WHO WORKS IN A PAPER MILL SAYS HE YELPS SIX HOURS A DAY DURING CALLING SEASON MR KIRBY MAKES RECORDINGS OF TURKEYS AND PLAYS THEM IN HIS CAR GREAT TRUMPET PLAYERS PRACTICE EACH DAY HE SAYS THIS IS THE SAME CONCEPT ANOTHER CONTESTANT MISSISSIPPIAN TUCKER CRISP KEEPS 20 TURKEYS IN HIS YARD AND SAYS HE REHEARSES WITH THEM THREE TIMES A DAY MR CRISP WHO ALSO CAN IMITATE A ROOSTER CROW PIG GOOSE BLUE JAY AND OWL LIKES TO LET LOOSE IN RESTAURANTS THEIR MOUTHS DROP OPEN AND THEIR TEETH HIT THE FLOOR HE SAYS OF THE OTHER DINERS ONE AFTER ANOTHER CONTESTANTS TAKE THE STAGE WHERE THEY GYRATE SWOON AND SHUDDER WITH EYES CLOSED AND HANDS CUPPED TO MOUTHS THEY TALK TURKEY THEY DO THE YELP THE RAPID SQUAWKING OF THE MOTHER HEN THE KEEKEE RUN THE FORLORN WHISTLE OF THE LOST CHICK THE CUT A HEN'S SEX TALK AND THE VARIOUS CLUCKS AND PURRS OF CASUAL TURKEY DIALOGUE CALLERS MAKE TURKEY SOUNDS BY BLOWING THROUGH LATEX REEDS WHICH SIT ON THE ROOF OF THE MOUTH OR BY RUBBING FRICTION CALLS MADE OF WOOD OR STONE PURISTS PREFER USING THEIR NATURAL VOICES BUT NO ONE CAN REMEMBER A PURIST WINNING NONE ENTERED THIS YEAR'S CONTEST DURING THE CONTEST MR NORTON A RUNNERUP LAST YEAR FAILED TO QUALIFY HE SLURRED HIS CACKLE AND HIS CUT SOUNDED LIKE A YELP MR CRISP LIKEWISE WAS ELIMINATED HE HOPES FOR BETTER LUCK IN THE GOBBLING COMPETITION IT'S A LESS PRESTIGIOUS SIDESHOW TO THE CALLING COMPETITION WITH CONTESTANTS DANCING WITH TURKEY DECOYS AND FLYING AROUND THE STAGE WHILE AMUSING SERIOUS CALLERS SAYS IT'S NOT A VERY MARKETABLE TALENT AS THE FINALS APPROACH MR PARROTT IS CONFIDENT HE HAS BROUGHT A SUITCASE FULL OF CALLING DEVICES AND A GOOD LUCK CHARM A THREEINCHTALL DOLL WITH A WHITE DRESS A VICTORY WOULD MAKE HIM THE BIGGEST WINNER IN THE COMPETITION'S 16YEAR HISTORY I PREFER HARDER CALLS THE HARDER THE BETTER HE SAYS IT SEPARATES THE MEN FROM THE BOYS OR AS MR GROVES THE JUDGE SAYS IT SEPARATES THE SHEEP FROM THE GOATS THE CHALLENGERS INCLUDE 50YEAROLD DICK KIRBY WHO WON IN 1984 BUT HASN'T MADE THE FINALS IN FOUR YEARS THOUGH CONSIDERED A LONG SHOT HE THINKS HIS WHISTLE IS GOOD ENOUGH TO BEAT MR PARROTT I AM GOING TO SOUND LIKE A TURKEY HE BOASTS HE BETTER SINCE HE OWNS QUAKER BOY WHICH HE SAYS HAS SALES OF 2 MILLION ANNUALLY BY PEDDLING NOT ONLY TURKEYCALLING DEVICES BUT TOOLS TO ATTRACT ELK AND DEER MR KIRBY'S SON CHRIS 23 ALSO IS A FINALIST THE APTLY NAMED MR PARROTT WHO CALLS FOURTH OUT OF THE 13 FINALISTS LETS FLY A PERFECT CUT AND A FLAWLESS KEEKEE BUT HIS PURR COMES OUT TOO DEEP LIKE A GROWL THE JUDGES GIVE HIM 421 POINTS OUT OF A POSSIBLE 500 THE YOUNGER MR KIRBY AND SEVERAL OTHER COMPETITORS HAVE CLUCKING TROUBLE AND FALL SHORT OF MR PARROTT'S SCORE THE SENIOR MR KIRBY APPEARS DOOMED AS WELL HE HAS COPIED THE WRONG LIST OF CALLS AND SCRAMBLES TO SWITCH MOUTHPIECES LEAVING HIM NO TIME TO REHEARSE YET SOMEHOW MR KIRBY PRODUCES AN INSPIRED ASSEMBLY CALL AND HIS KEEKEE RUN IS JUDGED PERFECT HE SCORES 426 EDGING MR PARROTT BY FIVE POINTS I CAN'T BELIEVE IT MR KIRBY SAYS MR PARROTT WHO MUST SETTLE FOR SECOND PLACE SHAKES HIS HEAD AND THEN SHAKES MR KIRBY'S HAND BUT ALREADY THE DETHRONED CHAMP IS PLOTTING HIS COMEBACK I CAN TELL YOU THIS HE VOWS I'LL BE BACK 9302220016 930222 MARKETING & MEDIA INJECTION OF 3 MILLION CLEARS HURDLE FOR HOFFENBERG TO BUY NEW YORK POST BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A LASTMINUTE INVESTMENT IS LIKELY TO ALLOW STEVEN HOFFENBERG CHAIRMAN OF TOWERS FINANCIAL CORP TO CLOSE HIS DEAL TO BUY THE NEW YORK POST ONE OF THE NATION'S OLDEST DAILY NEWSPAPERS ABRAHAM J HIRSCHFELD A NEW YORK REAL ESTATE INVESTOR AND UNSUCCESSFUL CONGRESSIONAL CANDIDATE HAS PUT UP 3 MILLION TO KEEP THE TABLOID NEWSPAPER RUNNING AND TO BECOME ITS COOWNER WITH MR HOFFENBERG UNDER THEIR AGREEMENT MADE PUBLIC YESTERDAY MR HIRSCHFELD WILL BECOME CHAIRMAN OF NEW YORK POST CO AND MR HOFFENBERG WILL BE THE PAPER'S PUBLISHER MR HIRSCHFELD'S MOVE COMES ON THE HEELS OF A DECISION FRIDAY BY US BANKRUPTCY JUDGE BURTON LIFLAND TO APPROVE A DEAL TO SELL THE PAPER TO MR HOFFENBERG JUDGE LIFLAND WHO IS OVERSEEING THE PERSONAL BANKRUPTCY OF THE POST'S CURRENT OWNER PETER KALIKOW SAID HE APPROVED THE DEAL BECAUSE MR HOFFENBERG WAS JUST ABOUT THE ONLY GAME IN TOWN A SUCCESSFUL SALE OF THE POST WILL CLEAR THE KALIKOW ESTATE OF SIGNIFICANT LIABILITIES THE INVESTMENT BY MR HIRSCHFELD WHO MR HOFFENBERG SAID HAS BEEN LIKE A FATHER TO ME FOR A LONG TIME WAS NECESSARY BECAUSE THE SECURITIES AND EXCHANGE COMMISSION OBJECTED TO MR HOFFENBERG'S USE OF HIS OWN OR TOWERS' MONEY TO KEEP THE UNPROFITABLE PAPER OPERATING THE SEC SUED MR HOFFENBERG EARLIER THIS MONTH SHORTLY AFTER HE BEGAN NEGOTIATIONS TO BUY THE POST THE SEC WHICH ACCUSED MR HOFFENBERG AND TOWERS A DEBT COLLECTION CONCERN OF FRAUDULENTLY SELLING 215 MILLION OF UNREGISTERED NOTES SAID THAT ANY DEAL FOR THE POST WOULD DISSIPATE ASSETS AT TOWERS THAT SHOULD BE AVAILABLE FOR INVESTORS THAT CASE IS BEFORE US DISTRICT JUDGE WHITMAN KNAPP IN NEW YORK DESPITE THE AGGRESSIVE POSTURE OF THE SEC MR HOFFENBERG NOW APPEARS TO HAVE PULLED OFF WHAT MANY SAW AS IMPOSSIBLE HE'LL BE ABLE TO LEAVE TOWERS FOR A NEW CAREER IN THE NEWSPAPER BUSINESS NOW WITH ABE I DON'T NEED TO USE MY OR TOWERS' MONEY AT ALL ON THE POST MR HOFFENBERG SAID AMONG OTHER THINGS THE SEC ALSO PLANNED TO OBJECT TO MR HOFFENBERG'S AND TOWERS' ASSUMPTION OF AT LEAST 45 MILLION IN POST LIABILITIES BUT RANDY MASTRO AN ATTORNEY FOR MR KALIKOW SAID THOSE LIABILITIES ONLY COME INTO PLAY IF THE POST FAILS AND MR HIRSCHFELD'S INVESTMENT SPEAKS VOLUMES ABOUT THE ABILITY OF THE POST TO SURVIVE A HOFFENBERG PURCHASE MR HOFFENBERG SAYS HE'LL NOW PUT TOWERS UP FOR SALE AT VERY FAVORABLE TERMS ASKED WHY HE'S WILLING TO LET GO OF TOWERS WHICH HE BUILT UP OVER NEARLY TWO DECADES AND WHICH HE MAINTAINS IS A STRONG BUSINESS MR HOFFENBERG SAYS THE SEC IS HOUNDING HIM MAKING IT IMPOSSIBLE FOR HIM TO STAY THERE ACCORDING TO THE SEC TOWERS HAS OVERSTATED ITS ASSETS BY 100 AND IS INSOLVENT LEAVING ITS NOTEHOLDERS AT GREAT RISK AMONG THE LARGEST HOLDERS ARE THE DETROIT PUBLIC PENSION FUNDS WHICH BOUGHT 50 MILLION OF TOWERS NOTES IN ADDITION THE TRUSTEE FOR 200 MILLION IN BONDS BACKED BY HEALTHCARE RECEIVABLES HAS SUED TOWERS ALLEGING THAT IT IS IN DEFAULT ON THE BONDS MR HOFFENBERG WHO HAS BEEN ACTING AS THE POST'S PUBLISHER AND HAS APPEARED AT COURT HEARINGS WITH A PRESS PASS DANGLING FROM HIS NECK SAID HE IS LIKELY TO CONTINUE WRITING A COLUMN FOR THE POST IN HIS COLUMN LAST FRIDAY HE SAID THE SEC HAS DOGGED EVERY STEP IN MY EFFORT TO SAVE THIS NEWSPAPER AND HAS DONE EVERYTHING IT CAN TO DENY ME MY CONSTITUTIONAL RIGHT TO PUBLISH THE NEW YORK POST NOW MR HOFFENBERG SAYS HE'LL TAKE ON PRESIDENT CLINTON WHOSE ECONOMIC PLAN IS IN TROUBLE 9302220015 930222 MARKETING BRIEF IMAGE TECH INTERNATIONAL INC GEORGIA CONCERN INTRODUCES SINGLEUSE' 3D CAMERA IMAGE TECH INTERNATIONAL INC LOOKING DEEP INTO THE CARDBOARD CAMERA MARKET INTRODUCED A THREEDIMENSIONAL VERSION THE CAMERA WHICH RETAILS FOR 995 EACH COMES PRELOADED WITH 3D FILM AND IS EQUIPPED TO HOOK UP TO A FLASH FROM A REGULAR CAMERA AFTER SHOOTING THE ROLL CONSUMERS MAIL THE CAMERA BACK TO IMAGE TECH THE ONLY US COMPANY THAT DEVELOPS THE FILM HOWEVER THE PRIVATELY HELD NORCROSS GA COMPANY IS SELLING FILMDEVELOPING EQUIPMENT TO OTHERS WHO WANT TO ENTER THE MARKET CARDBOARD CAMERAS CALLED SINGLEUSE BECAUSE THEY CAN BE USED ONLY ONCE ARE THE FASTESTGROWING SEGMENT OF THE PHOTOGRAPHY MARKET LAST YEAR ABOUT 22 MILLION WERE SOLD UP FROM ROUGHLY 14 MILLION IN 1991 ACCORDING TO THE PHOTO MARKETING ASSOCIATION A TRADE GROUP CUSTOMERS ARE CURIOUS ABOUT 3D BUT IT'S UNCLEAR WHETHER THEY'RE CURIOUS ENOUGH TO MAKE IMAGE TECH'S NEW PRODUCT A HOT SELLER RETAILERS SAY 9302220014 930222 TECHNOLOGY & MEDICINE ELI LILLY & CO IS SCRUTINIZED BY GRAND JURY BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL A US GRAND JURY IN BALTIMORE IS INVESTIGATING ELI LILLY & CO FOR POSSIBLE CRIMINAL VIOLATIONS OF FEDERAL STANDARDS FOR PROPER MANUFACTURE OF PHARMACEUTICALS THE CRIMINAL INQUIRY STEMS FROM A 1989 INSPECTION BY THE US FOOD AND DRUG ADMINISTRATION OF A LILLY DRUG MANUFACTURING PLANT IN INDIANAPOLIS WHICH THE COMPANY CALLS BUILDING 100 THAT PLANT ONE OF MORE THAN 30 LILLY FACILITIES MAKING PHARMACEUTICALS HAS BEEN USED TO MANUFACTURE THE COMPANY'S OLDEST DRUGS SUCH AS THE PAINKILLER DARVON PRODUCTS DEVELOPED MORE RECENTLY SUCH AS THE ANTIBIOTIC CECLOR AND THE ANTIDEPRESSANT PROZAC ARE MADE ELSEWHERE FDA INSPECTORS ISSUED AN UNUSUALLY LONG AND DETAILED COMPENDIUM OF VIOLATIONS AT THE PLANT AFTER THEIR FOURMONTHLONG INSPECTION THE AGENCY ALSO CONCLUDED THAT EMPLOYEES OF INDIANAPOLISBASED LILLY TWICE IN 1989 SUBMITTED FALSE OR INCOMPLETE DATA TO THE FDA ON DRUGS MADE AT THE PLANT LILLY SAID THAT IT HAS CORRECTED THE VIOLATIONS AND THAT NO ALLEGATIONS OF UNSAFE DRUGS HAVE EVER BEEN MADE LILLY SENIOR AIDES SAID THEY DON'T KNOW THE PRECISE NATURE OF THE CRIMINAL INQUIRY RICHARD D BENNETT THE US ATTORNEY IN BALTIMORE DECLINED COMMENT AS DID SENIOR FDA OFFICIALS AT THEIR MAIN OFFICE IN ROCKVILLE MD HOWEVER CASES OF FALSE OR INCOMPLETE DATA ARE THE TYPES OF MATTERS THAT USUALLY TRIGGER A CRIMINAL INQUIRY UNDER FEDERAL LAW ANY VIOLATION OF THE FOOD DRUG AND COSMETICS ACT WITH INTENT TO MISLEAD AND DECEIVE IS A FELONY FELONY CHARGES ALSO CAN RESULT FROM MAKING FALSE STATEMENTS TO GOVERNMENT INVESTIGATORS OR FROM INTERFERING WITH AN INSPECTION THE FDA EXAMINATION OF THE LILLY PLANT REVEALED OBJECTIONABLE CONDITIONS IN NEARLY EVERY AREA INSPECTED FEDERAL INSPECTORS WROTE IN 1989 RECORDKEEPING PROBLEMS WERE DETECTED IN NEARLY ALL AREAS INSPECTED SOME OF THE MORE SERIOUS FINDINGS OF THAT 1989 INSPECTION RELATED TO SOCALLED STABILITY TESTS WHICH INDICATE A DRUG'S ABILITY TO WORK AS PROMISED OVER TIME INVESTIGATORS FOUND IN SUCH TESTS THAT FOUR LOTS OF THE ANTIBIOTIC ILOTYCIN HAD REGISTERED IMPROPER MOISTURE LEVELS BUT REPORTS TO THE FDA HADN'T MENTIONED THE PROBLEM TOO MUCH MOISTURE CAN MAKE A DRUG DEGRADE MORE QUICKLY HURTING ITS EFFECTIVENESS FEDERAL INSPECTORS ALSO DOCUMENTED CASES OF EMPLOYEES' SIGNING RECORDS WITHOUT SEEING THE PROCESSING STEPS THEY WERE CERTIFYING INVESTIGATORS REPORTED ONE INSTANCE OF A SUPERVISOR'S SIGNING OFF ON SOME OF THE TABLET WEIGHTS OF THE PAINKILLER DARVOCETN 50 WITHOUT ACTUALLY VERIFYING THE WEIGHT FOLLOWING THE 1989 INSPECTION LILLY RECALLED FROM ITS WHOLESALERS 18 LOTS OF 10 DRUGS INCLUDING DARVON AND THE PAINKILLER DOLOPHINE HYDROCHLORIDE SUBSEQUENTLY THE COMPANY REACHED AN AGREEMENT WITH THE FDA TO CORRECT THE INFRACTIONS THE FEDERAL INQUIRY REVIVES TROUBLES FROM LILLY'S PAST AT A PARTICULARLY INOPPORTUNE TIME DRUG STOCKS HAVE BEEN HAMMERED LATELY AS INVESTORS RESPOND TO PRESIDENT CLINTON'S INTENTION TO SCRUTINIZE PHARMACEUTICAL EARNINGS AS A WAY OF CUTTING HEALTH COSTS IN NEW YORK STOCK EXCHANGE TRADING FRIDAY LILLY CLOSED AT 4875 DOWN 3125 ITS LOWEST LEVEL IN MONTHS FURTHERMORE THE COMPANY HAS SUFFERED DISAPPOINTING EARNINGS RESULTS LATELY IN 1992'S THIRD QUARTER LILLY REPORTED ITS FIRSTEVER QUARTERLY LOSS THE COMPANY ALSO HAD SETBACKS IN ITS MEDICALDEVICE OPERATIONS IN RESPONSE TO AN FDA INSPECTION THE REDMOND WASH PLANT THAT MAKES EMERGENCY DEFIBRILLATORS WAS CLOSED IN MAY ALTHOUGH THAT FACILITY WHICH ONCE BROUGHT IN 150 MILLION IN ANNUAL REVENUE HAS RESUMED INTERNATIONAL SHIPMENTS IT STILL AWAITS AN FDA DECISION TO RESTART US PRODUCTION