TORONTO CANADIAN SECURITIES INDUSTRY OFFICIALS SOUGHT TO MINIMIZE WORRIES ABOUT THE FINANCIAL HEALTH OF SECURITIES DEALERS AFTER THE OFFICIALS THEMSELVES STIRRED UP THE CONCERN BY ASKING DEALERS TO REPORT THEIR EXPOSURE TO COMPANIES CONTROLLED BY TORONTO FINANCIERS EDWARD AND PETER BRONFMAN I HAVE ABSOLUTELY NO CONCERN THAT ANYBODY HAS THOSE SECURITIES IN A MAGNITUDE THAT WOULD CAUSE A PROBLEM SAID DONALD LESLIE PRESIDENT OF CANADIAN INVESTOR PROTECTION FUND WHO ORIGINALLY SUGGESTED THE SURVEY THE INDUSTRYFUNDED PROTECTION FUND INSURES CLIENTS AGAINST FINANCIAL LOSS IF THEIR SECURITIES ARE LOST BECAUSE OF THE FAILURE OF A DEALER COMPANIES OF THE EDPER GROUP SO NAMED AFTER THE FOUNDING BROTHERS ARE CANADA'S BIGGEST ISSUERS OF EQUITY DESPITE A LONG HAMMERING IN THE STOCK MARKET THEIR PUBLICLY TRADED SHARES HAVE A MARKET VALUE OF MORE THAN 16 BILLION CANADIAN DOLLARS US1273 BILLION THE INVESTMENT DEALERS ASSOCIATION OF CANADA AND THE COUNTRY'S FOUR STOCK EXCHANGES RECENTLY SENT IDENTICAL ONEPAGE QUESTIONNAIRES TO THEIR MEMBERS IT ASKED THE DEALERS TO DETAIL THE SHARES HELD FOR THEIR OWN ACCOUNTS IN 22 EDPER GROUP COMPANIES PLUS THE AMOUNT OF LOANS OUTSTANDING AGAINST SIMILAR SECURITIES IN CUSTOMERS' MARGIN ACCOUNTS EXISTENCE OF THE QUESTIONNAIRE WAS REPORTED YESTERDAY BY TORONTO NEWSPAPERS WHICH NOTED THAT FIRMS CAN FACE FINANCIAL DANGER IF THEY HOLD LARGE AMOUNTS OF HEAVILY MARKEDDOWN SECURITIES SHARE PRICES FOR SOME BUT NOT ALL OF THE EDPER COMPANIES ARE OFF BY 50 OR MORE FROM LAST YEAR'S HIGHS MR LESLIE SAID HE WAS DISMAYED AT THE PROMINENCE GIVEN TO PRESS REPORTS OF THE SURVEY HE SAID HE SUGGESTED THE QUESTIONNAIRE MAINLY BECAUSE CANADIAN BANK REGULATORS RECENTLY SURVEYED THE COUNTRY'S FINANCIAL INSTITUTIONS ABOUT THEIR LOAN EXPOSURE TO EDPER COMPANIES IF WE DIDN'T SEND IT OUT AND SOMEBODY DID HAVE A PROBLEM WE WOULD LOOK LIKE FOOLS HE SAID BUT HE SAID THE EXCHANGES' REGULAR MONITORING ALREADY SHOWED THAT NONE OF THE EDPER COMPANIES' SECURITIES WERE AMONG THE 20 MOST COMMONLY HELD IN MARGIN ACCUNTS HE SAID THE LATEST SURVEY WAS A BELT AND SUSPENDERS CHECK WHILE NOT ALL THE SURVEY RESULTS ARE IN DAVID BATES A TORONTO STOCK EXCHANGE EXECUTIVE SAID INCOMPLETE RETURNS FROM ITS MEMBERS INDICATE THERE'S NO SERIOUS PROBLEM AMONG THE MEMBERSHIP 9302180121 930218 WHO'S NEWS GOODY'S FAMILY CLOTHING INC GOODY'S FAMILY CLOTHING INC KNOXVILLE TENN ROGER L JENKINS WAS ELECTED PRESIDENT SUCCEEDING ROBERT M GOODFRIEND WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE DR JENKINS 47 HAS BEEN A MEMBER OF THE BOARD OF THE CLOTHING RETAILER SINCE OCTOBER 1991 HE IS A PROFESSOR OF MARKETING AND ASSOCIATE DEAN FOR ACADEMIC AFFAIRS FOR THE UNIVERSITY OF TENNESSEE BUSINESS SCHOOL IN KNOXVILLE HIS APPOINTMENT IS EFFECTIVE MARCH 1 9302180120 930218 TOWERS FINANCIAL AND SEC ENTER INTO AGREEMENT ACCORD CALLS FOR CONTROL OF LARGE EXPENDITURES TRUSTEE IS APPOINTED BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TOWERS FINANCIAL CORP AGREED WITH THE SECURITIES AND EXCHANGE COMMISSION TO THE APPOINTMENT OF A TRUSTEE TO RUN ITS BUSINESS AND TO PUT CONTROLS ON EXPENDITURES ABOVE 100000 TOWERS ATTORNEY IRA LEE SORKIN SAID AT A HEARING IN FEDERAL COURT THAT THE AGREEMENT ALLOWS THE DEBTCOLLECTION COMPANY TO MOVE FORWARD WITH PLANS TO RESTRUCTURE AND REFINANCE OR TO BE ACQUIRED BY ANOTHER CONCERN BUT THE AGREEMENT RAISES SERIOUS QUESTIONS ABOUT THE ABILITY OF STEVEN HOFFENBERG TOWERS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT TO COMPLETE HIS PURCHASE OF THE NEW YORK POST A TABLOID RICHARD WALKER REGIONAL DIRECTOR OF THE SEC SAID YESTERDAY THAT THE COMMISSION WOULD OPPOSE EXPENDITURES ON THE POST BY TOWERS OR MR HOFFENBERG SINCE IT WOULD TAKE AWAY MONEY AVAILABLE FROM ALLEGEDLY DEFRAUDED INVESTORS AT THE HEARING YESTERDAY US DISTRICT JUDGE WHITMAN KNAPP APPROVED THE AGREEMENT WITH THE SEC WHICH INCLUDES A PRELIMINARY INJUNCTION BARRING TOWERS AND ITS TOP OFFICIALS FROM BREAKING SECURITIES LAWS IN THE AGREEMENT TOWERS AND MR HOFFENBERG DON'T ADMIT OR DENY ANY LIABILITY OR WRONGDOING THE SEC BELIEVES THAT TOWERS DOESN'T HAVE ENOUGH ASSETS TO BACK MORE THAN 400 MILLION IN INVESTMENTS MADE BY THOUSANDS OF INVESTORS AROUND THE COUNTRY JUDGE KNAPP SAID LATE YESTERDAY THAT HE SELECTED AS TRUSTEE JESS FARDELLA A FORMER FEDERAL PROSECUTOR WHO HANDLED THE MICHAEL MILKEN AND DREXEL BURNHAM LAMBERT INC CASES THE SEC HAD SOUGHT THE APPOINTMENT OF A TRUST IN ITS LAWSUIT MR FARDELLA WILL TAKE CONTROL OF TOWERS' BOOKS AND RECORDS AND WILL WORK WITH THE ACCOUNTANTS IN SORTING OUT THE FINANCIAL SITUATION OF THE FIRM MR HOFFENBERG WHO CONTROLS TOWERS WILL BE FREE UNDER THE AGREEMENT HOWEVER TO PURSUE A DEAL TO SELL THE COMPANY OR RESTRUCTURE IT UNDER THE AGREEMENT MR HOFFENBERG WILL ALSO FACE LIMITS ON HOW MUCH MONEY HE SPENDS THOSE LIMITS WILL BE WORKED OUT LATER THIS MONTH IN ADDITION MR HOFFENBERG WILL BE REQUIRED TO DETAIL ALL ASSETS THAT HE OR HIS FAMILY TRUSTS CONTROL NONETHELESS THE AGREEMENT ACHIEVES THE SEC'S GOAL OF MAKING SURE THAT TOWERS' AND MR HOFFENBERG'S ASSETS AREN'T DISSIPATED WHILE THE BDO SEIDMAN ACCOUNTING FIRM CONDUCTS A FULLSCALE AUDIT OF THE COMPANY ANY HOPE THAT TOWERS WILL BE ACQUIRED IS SLIM TOWERS WHICH THE SEC SAYS IS INSOLVENT WILL LIKELY HAVE A TOUGH TIME FINDING REFINANCING IT'S ALSO UNCERTAIN WHO WOULD BUY TOWERS WHICH THE SEC SAYS HAS OVERSTATED ITS ASSETS BY MORE THAN TWO TIMES MR SORKIN DID NOT IDENTIFY ANY POTENTIAL BUYERS ANALYSTS SAID TOWERS' MOST ATTRACTIVE UNIT MAY BE TOWERS HEALTH CARE RECEIVABLES FUNDING CORP WHICH WAS AN EARLY REPACKAGER OF HOSPITAL BILLS BUT EVEN THAT UNIT HAS COME INTO QUESTION AS TOWERS STOPPED MAKING PAYMENTS LAST WEEK ON ITS 200 MILLION IN HEALTHCARE BONDS THE TRUSTEE FOR THOSE BONDS WON A COURT ORDER TUESDAY REQUIRING TOWERS TO MAKE GOOD ON THE PAYMENTS WHICH AVERAGED MORE THAN 2 MILLION A DAY BUT TOWERS HAS YET TO COMPLY WITH THE ORDER ON FRIDAY A BANKRUPTCY JUDGE WILL CONSIDER WHETHER TO ALLOW MR HOFFENBERG TO BUY THE POST A MONEYLOSING NEWSPAPER WITH MULTIMILLION DOLLAR TAX LIABILITIES BUT UNDER THE AGREEMENT REACHED YESTERDAY ANY EXPENDITURES BY MR HOFFENBERG OR TOWERS ON THE POST WILL HAVE TO BE REVIEWED BY THE SEC ON TWO DAYS' NOTICE ALTHOUGH IT WILL BE UP TO JUDGE KNAPP TO DECIDE WHETHER THEY SHOULD BE ALLOWED OR NOT ATTORNEYS FOR MR HOFFENBERG AND PETER KALIKOW THE CURRENT OWNER OF THE NEW YORK POST CONTEND THAT THE NEWSPAPER CAN CONTINUE OPERATING UNDER THE AGREEMENT WITH THE SEC AND THAT THE DEAL CAN GO FORWARD 9302180119 930218 LETTERS TO THE EDITOR POSTAL SERVICE RECEIVES NO FEDERAL SUBSIDIES LAWRENCE A KUDLOW'S JAN 25 EDITORIALPAGE ARTICLE THE DEFICIT OBSESSION EXPRESSED HOPE THAT THE MEMBERS OF PRESIDENT CLINTON'S ECONOMIC TEAM CAN QUICKLY BECOME STUDENTS OF HISTORY AS THEY ATTEMPT TO TACKLE THE PROBLEMS OF THE ECONOMY I CAN ONLY EXPRESS THE SAME HOPE FOR MR KUDLOW AFTER HE WROTE THAT THE POSTAL SERVICE CONTINUES TO RECEIVE FEDERAL ASSISTANCE IT DOES NOT AND MOST STUDENTS OF HISTORY COULD HAVE ESTABLISHED THAT RELATIVELY EASILY THE POSTAL SERVICE HAS RECEIVED NO DIRECT FEDERAL SUBSIDIES SINCE 1983 THROUGH A SERIES OF OMNIBUS BUDGET RECONCILIATION ACTS STARTING IN 1985 AND EXTENDING THROUGH 1990 ALL SOCALLED INDIRECT SUBSIDIES HAVE BEEN ELIMINATED IN FACT BY 1995 WE WILL HAVE PAID INTO THE US TREASURY SOME 9 BILLION TO COVER THE COST OF ALLEGED PAST SUBSIDIES PERPETUATING THIS MYTH ABOUT THE POSTAL SERVICE WHILE CHIDING THE NEW ECONOMIC TEAM ON ITS ALLEGED LACK OF HISTORICAL PERSPECTIVE DOESN'T DO MUCH FOR MR KUDLOW'S CREDIBILITY EITHER AS AN HISTORIAN OR AN ECONOMIST 9302180118 930218 ANADARKO TESTS ALGERIAN WELL HOUSTON ANADARKO PETROLEUM CORP SAID ITS DISCOVERY WELL IN ALGERIA FLOWED ABOUT 1972 BARRELS OF OIL A DAY AND 37 MILLION CUBIC FEET OF GAS FROM ONE PRODUCING ZONE THE WELL WHICH HAS AN ADDITIONAL PRODUCING ZONE THAT IS CURRENTLY UNDERGOING TESTS WAS TESTED ON A 3/4INCH CHOKE OR RESTRICTED OPENING ANADARKO IS OPERATOR WITH A 50 WORKING INTEREST OTHER PARTNERS IN THE WELL ARE A UNIT OF LASMO PLC OF THE UK AND A DANISH COMPANY MAERSK OLIE OG GAS AS ANADARKO HAS A PRODUCTION SHARING AGREEMENT WITH SONATRACH THE ALGERIAN OIL AND GAS ENTERPRISE WHICH PROVIDES THAT SONATRACH ANADARKO AND THE OTHER TWO PARTNERS SHARE UNDISCLOSED PORTIONS OF THE PRODUCTION 9302180117 930218 TAXES TAXES TAXES BY ALAN REYNOLDS THE PRESIDENT'S LONGAWAITED ECONOMIC STIMULUS PACKAGE TURNS OUT TO CONSIST ALMOST ENTIRELY OF MUCH HIGHER AND BROADER TAXES THAN ANYONE HAD IMAGINED THE NEW THEME IS SHARED SACRIFICE NOT PROSPERITY PERSONAL INCOME TAX RATES ARE TO BE INCREASED AGAIN TO 36 ON TAXABLE INCOME OVER 140000 FOR JOINT RETURNS AND NEARLY 40 FOR INCOMES ABOVE 250000 THESE PROPOSED TAX RATES MAY LOOK LOWER THAN THEY WERE IN 1980 BUT EFFECTIVE MARGINAL RATES WOULD REALLY BE HIGHER FOR MANY FAMILIES THAT IS BECAUSE THE 1986 TAX REFORM ENDED MANY DEDUCTIONS SUCH AS THOSE FOR INTEREST EXPENSE HEALTH INSURANCE AND SALES TAXES PRESIDENT CLINTON NOW RECOMMENDS EVEN FEWER DEDUCTIONS WITH A 2628 MINIMUM TAX THAT MEANS THE STEEP MARGINAL TAX RATES WILL APPLY TO MANY MORE PEOPLE THAN THEY DID IN THE PAST ANY INCOME REPORTED ABOVE 250000 WOULD FACE 41 HIGHER TAXES THAN IT DID UNDER THE REFORMED 28 RATE AS OF THIS WRITING THE TOP ESTATE TAX RATES OF 5355 ARE TO BE REINSTATED WITH GRAVE EFFECTS ON FAMILY FARMS AND BUSINESSES THE ADMINISTRATION IS DOUBTLESS TRYING TO FINANCE CORPORATE INVESTMENT TAX CREDITS WITH HIGHER PERSONAL TAX RATES THE PROBLEM IS THAT THIS WON'T WORK SINCE UNINCORPORATED SMALL BUSINESSES FARMS PROFESSIONALS AND THE SELFEMPLOYED WILL INCORPORATE TO GET THE LOWER 36 CORPORATE TAX EVEN THOSE IN THE 36 PERSONAL BRACKET WILL HAVE AN INCENTIVE TO INCORPORATE BECAUSE THE INCREASED 36 CORPORATE TAX ONLY APPLIES TO REVENUES ABOVE 10 MILLION THE MILLIONAIRE'S SURTAX OF 10 ON TAXABLE INCOME OVER 250000 THUS DEPENDS ON HOW YOU EARN YOUR INCOME NOT HOW MUCH YOU EARN THE CLINTON PROGRAM IN ANY CASE IS A PROGRAM THAT DIVIDES GENERATIONS IT CONSTITUTES A WAR ON RETIRED PEOPLE EARNING MORE THAN 25000 AND ON TWOEARNER MIDDLEAGED COUPLES WHO NORMALLY HAVE MUCH HIGHER INCOMES THAN YOUNG SINGLES YET MANY YOUNG PEOPLE NOW EARNING 30000 OR LESS ASPIRE TO EARN MORE IN THE FUTURE THE PROPOSED STEEP TAX PENALTIES ON SUCCESS DEMORALIZE THE AMBITIOUS REDUCING THE INCENTIVE FOR YOUNG PEOPLE TO DO THE DIFFICULT THINGS REQUIRED TO EARN HIGH INCOMES IN THE FUTURE THE TAXES ALSO DIVIDE AMERICA'S REGIONS THE STEEP INCOME TAX RATES HURT THE MOST IN THE DEPRESSED HIGHCOST CITIES OF CALIFORNIA AND THE EAST COAST AN INCOME OF 100000 GOES A LOT FURTHER IN LITTLE ROCK THAN IT DOES IN MANHATTAN THE ENERGY TAX FALLS MOST HEAVILY ON AREAS WITH INTEMPERATE WEATHER LONG DRIVING DISTANCES OR ENERGYINTENSIVE INDUSTRIES IT IS QUITE MISLEADING TO CALL IT A CONSUMPTION TAX IT IS INSTEAD A FORMIDABLE TAX ON A VITAL INPUT INTO PRODUCTION IT WOULD RAISE PRODUCTION COSTS FOR MANY STRUGGLING INDUSTRIES SUCH AS AIRLINES AUTOS ALUMINUM PAPER AND AGRICULTURE IT WOULD RAISE TRANSPORT COSTS THE RESULTING CORPORATE LOSSES WOULD MAKE A JOKE OUT OF PROJECTED CORPORATE TAX RECEIPTS AND WOULD ALSO TURN JOBS INTO LAYOFFS THE EFFECTS ON THE ECONOMY WOULD BE LIKE IMPOSING AN OPEC EMBARGO ON OURSELVES THIS IS ONLY THE FIRST STAGE THERE WILL MORE TAXES UP TO 90 BILLION MORE WHEN HILLARY RODHAM CLINTON REVEALS THE HEALTHCARE PROPOSALS THE PRESIDENT ASKS US TO BELIEVE THAT ONLY UNPATRIOTIC SPECIAL INTERESTS COULD POSSIBLY QUESTION HIS PLANS IN REALITY HIS PROPOSED CONSTRUCTION PROJECTS AND INCREMENTAL INVESTMENT TAX CREDIT TEMPORARY FOR BUSINESSES WITH REVENUES ABOVE 5 MILLION ARE SUBJECTS OF INTENSE LOBBYING SUCH COSTLY PROGRAMS WOULD UNDOUBTEDLY ENRICH POLITICALLY INFLUENTIAL SPECIAL INTERESTS BUT SUCH SPECIAL INTERESTS BENEFIT AT THE EXPENSE OF A MUCH BROADER GROUP OF SMALL BUSINESSES FARMS AND HOUSEHOLDS WE CAN'T JUST RELY ON A GENEROUS EARNED INCOME TAX CREDIT TO TRICKLE UP INTO THE WEAK MARKET FOR NEW HOUSES AND NEW CARS FROM THE BEGINNING CLINTONOMICS HAS BEEN BASED ON THREE DUBIOUS THEMES THE FIRST IS THE PRESIDENT'S OBSESSIVE CONCERN THAT THE BIG INCREASE IN INCOME REPORTED AMONG THE TOP 1 OF TAXPAYERS PROVES THEY BENEFITED UNFAIRLY FROM LOWER MARGINAL TAX RATES THE SECOND IS THE NOTION THAT GOVERNMENT INFRASTRUCTURE PROGRAMS ARE ENORMOUSLY BENEFICIAL TO PRIVATE MANUFACTURING THE THIRD IS THE CLAIM THAT HIGHER TAX RATES HAVE NO BAD EFFECTS ON ECONOMIC GROWTH PEOPLE WILL SUPPOSEDLY KEEP EARNING AND REPORTING AS MUCH INCOME AS BEFORE REGARDLESS OF TAXES AND SOMEHOW SPEND AND SAVE JUST AS MUCH FROM THEIR SMALLER AFTERTAX INCOMES AS IT HAPPENS THE NATIONAL BUREAU OF ECONOMIC RESEARCH RECENTLY ISSUED RESEARCH PAPERS DEALING WITH THESE THREE DEFINING FEATURES OF THE PRESIDENT'S APPROACH ON THE FIRST POINT DANIEL FEENBERG OF THE NATIONAL BUREAU AND JAMES POTERBA OF MIT LOOKED INTO THE RISING SHARE OF INCOME OF THE INFAMOUS TOP 1 WHAT THESE AUTHORS FOUND IS THAT SUCH RICH COUPLES EARNED AND REPORTED MORE INCOME IN THE 1980S BECAUSE THE TAX REFORMS OF 1981 AND 1986 LOWERED MARGINAL TAX RATES ON HIGHINCOME HOUSEHOLDS REDUCING THEIR INCENTIVE TO DEFER TAXABLE INCOME TO TRANSFORM EARNINGS INTO UNTAXED FRINGE BENEFITS AND TO ENGAGE IN OTHER FORMS OF TAX AVOIDANCE WITH MORE INCENTIVE TO EARN MORE AND REPORT IT THE SHARE OF ALL FEDERAL INCOME TAXES PAID BY THE TOP 1 SOARED FROM 179 IN 1981 TO 276 IN 1988 BEFORE DIPPING BACK TO 256 IN 1990 MR CLINTON NOW PLANS TO PUT THIS PROCESS IN REVERSE WITH MUCH HIGHER TAX RATES HIGHER MINIMUM TAXES AND HIGHER TAXES ON EXECUTIVE PAY IF THIS HAPPENS THE HIGH AND RISING INCOMES REPORTED BY THE RICH IN THE 1980S WILL INDEED VANISH AS THE PRESIDENT APPARENTLY WISHES BUT SO WILL THEIR TAXES IF THE CLINTON TAX SCHEMES PASS LOOK FOR THE GOVERNMENT TO ANNOUNCE SURPRISINGLY DISAPPOINTING REVENUES BY YEAR'S END AT THAT POINT THE NEXT REQUEST FOR MORE TAXES WILL HAVE TO BE SHIFTED TO THOSE WITH LOWER INCOMES THE SECOND PLANK OF CLINTONOMICS IS THAT THE SUCCESS OF MANUFACTURING DEPENDS ON GOVERNMENT INVESTMENT IN INFRASTRUCTURE INDEED AFTER ALLEGING QUITE WRONGLY THAT JAPAN AND GERMANY ARE INVESTING MORE THAN 12 TIMES WHAT WE SPEND ON ROADS BRIDGES AND THE LIKE MR CLINTON'S BOOK PUTTING PEOPLE FIRST LEAPS TO THIS ODD CONCLUSION NO WONDER THEY THREATEN TO SURPASS AMERICA IN MANUFACTURING NEVER MIND THAT INDUSTRIAL PRODUCTION FELL BY 37 IN GERMANY LAST YEAR AND BY 82 IN JAPAN OR THAT US MANUFACTURING OUTPUT IS NOW ABOUT 40 HIGHER THAN IT WAS IN 1980 THE CURIOUS IDEA THAT GOVERNMENT INVESTMENT RAISES PRIVATE OUTPUT DOESN'T WORK AT HOME ANY BETTER THAN IT DOES ABROAD A NATIONAL BUREAU STUDY BY DOUGLAS HOLTZEAKIN OF SYRACUSE UNIVERSITY CAREFULLY EXAMINED DATA FROM THE 50 STATES AND FOUND NO LINK WHATSOEVER ZERO BETWEEN PUBLIC INFRASTRUCTURE SPENDING AND PRIVATE PRODUCTION THE THIRD PLANK BENEATH THE CLINTON PROGRAM IS THAT TAX INCREASES DON'T AFFECT TAX REVENUES IN ANOTHER NATIONAL BUREAU PAPER FISCAL POLICY AND ECONOMIC GROWTH ERIC ENGEN OF UCLA AND JONATHAN SKINNER REVIEW NEARLY A DOZEN RECENT STUDIES SHOWING THAT INCREASES IN TAX RATES AND/OR GOVERNMENT SPENDING DO LASTING DAMAGE TO ECONOMIC GROWTH FULLY 65 BILLION OF THE DEFICIT CUT THAT MR CLINTON ORIGINALLY PROMISED FOR 1996 WAS TO COME FROM THE ECONOMY GROWING BY ONE PERCENTAGE POINT FASTER EVERY YEAR BUT ONCE GROWTH TAKES A BACK SEAT TO SACRIFICE THE BUDGET CAN'T POSSIBLY IMPROVE IT IS A COMMON MISTAKE TO DESCRIBE HIGHER TAX RATES IN TERMS OF THE STATIC REVENUES THAT POLITICIANS HOPE THEY WILL RAISE ON THE ABSURD ASSUMPTION THAT HIGHER TAX RATES NEITHER REDUCE ECONOMIC GROWTH NOR INCREASE TAX EVASION THE ALLEGED 150 BILLION FEDERAL TAX INCREASE OF 1990 WAS IMMEDIATELY FOLLOWED BY A STEEP DECLINE IN REAL REVENUE PARTICULARLY FROM THE RICH HIGHER US TAX RATES IF ENACTED WILL SOON YIELD LESS REVENUE NOT MORE TWOEARNER FAMILIES WILL BECOME ONEEARNER FAMILIES EXECUTIVES WILL TAKE MORE PAY IN THE FORM OF PERKS AND PENSIONS MIDDLEAGED MEN AND WOMEN WILL RETIRE YOUNGER FEWER YOUNG PEOPLE WILL BOTHER TO EARN ADVANCED DEGREES OR RISK STARTING NEW BUSINESSES INVESTORS WILL SHIFT INTO TAX SHELTERS AND TAXFREE BONDS CORPORATIONS WILL GET BACK INTO DEBT TO MINIMIZE TAXABLE PROFITS ECONOMIC GROWTH AND JOBS WILL SUFFER JUST AS THEY DID WHEN CANADA GERMANY AND JAPAN IMPOSED HIGHER INCOME AND SALES TAX RATES IN 1990 AND WHEN HERBERT HOOVER AND LYNDON JOHNSON DID THE SAME IN THE US ADD IT ALL UP AND THE PRESIDENT'S TAX PROPOSALS MUST LEAVE US WITH A MUCH WEAKER US ECONOMY FOR YEARS TO COME CONVERTING A MANAGEABLE BUDGET PROBLEM INTO A FULLBLOWN ECONOMIC CRISIS MR REYNOLDS IS DIRECTOR OF ECONOMIC RESEARCH AT THE HUDSON INSTITUTE IN INDIANA 9302180116 930218 FINANCING BUSINESS HORSHAM CORP HORSHAM CORP TORONTO SAID IT RAISED US125 MILLION FROM A PRIVATE PLACEMENT OF SENIOR SECURED ZEROCOUPON NOTES PROCEEDS WILL BE USED MAINLY TO FUND HORSHAM'S PURCHASE OF THE REMAINING 40 OF ITS CLARK OIL & REFINING CORP SUBSIDIARY FROM MINORITY SHAREHOLDERS THE NOTES WHICH ARE SECURED BY SHARES IN ST LOUISBASED CLARK OIL HAVE A FACE VALUE OF 264 MILLION THEIR EFFECTIVE YIELD TO MATURITY IN FEBRUARY 2000 IS 11 AS PREVIOUSLY REPORTED HORSHAM A HOLDING COMPANY WILL PAY 100 MILLION FOR THE MINORITY INTEREST IN CLARK OIL WHICH IS OWNED BY ST LOUIS BUSINESSMEN PAUL NOVELLY AND SAMUEL GOLDSTEIN 9302180113 930218 MAJOR CAR MAKERS TO POOL EFFORT ON FACTORY POLLUTION DETROIT THE BIG THREE US AUTO MAKERS ARE EXPECTED TO ANNOUNCE TODAY A COOPERATIVE EFFORT AIMED AT POOLING RESEARCH ON POLLUTION CONTROL AT FACTORIES GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP FACE PRESSURES TO FURTHER CUT EMISSIONS FROM PLANTS TO COMPLY WITH THE 1990 CLEAN AIR ACT BY POOLING RESEARCH ON TECHNOLOGY TO MEET THE STANDARDS THE BIG THREE COULD SAVE MILLIONS OF DOLLARS IN DUPLICATED EFFORT THE GROUP IS EXPECTED TO BE ORGANIZED UNDER THE UMBRELLA OF USCAR THE ENTITY SET UP BY THE BIG THREE TO COORDINATE THEIR GROWING STABLE OF COOPERATIVE RESEARCH PROJECTS AMONG OTHER JOINT RESEARCH PROGRAMS UNDER THE UMBRELLA GROUP IS A STUDY OF POSSIBLE JOINT PRODUCTION OF AN ELECTRIC VEHICLE TO MEET CLEAN AIR STANDARDS IN CALIFORNIA IN THE LATE 1990S 9302180112 930218 BUSINESS BRIEF COTT CORP COMPANY INTENDS TO ISSUE 1 MILLION ADDITIONAL SHARES COTT CORP SAID IT PLANS TO ISSUE AN ADDITIONAL ONE MILLION COMMON SHARES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COTT CLOSED AT 24875 DOWN 75 CENTS THE TORONTO SOFTDRINK MANUFACTURER WHICH CURRENTLY HAS 26 MILLION SHARES OUTSTANDING SAID THE ISSUE WILL BE UNDERWRITTEN BY FIRST MARATHON SECURITIES LTD IN CANADA AND BY OPPENHEIMER & CO IN THE US THE UNDERWRITERS ALSO HAVE AN OPTION TO PURCHASE AN ADDITIONAL 100000 SHARES COTT SAID THE COMPANY SAID PROCEEDS FROM THE OFFERING WILL BE USED FOR WORKING CAPITAL AND EXPANSION OF ITS BOTTLING CAPACITY 9302180111 930218 TALKS ON NAFTA SIDE DEALS TO START WEEK OF MARCH 15 WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID NEGOTIATIONS OVER SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD BEGIN THE WEEK OF MARCH 15 PRESIDENT CLINTON HAS SAID HE WANTS TO NEGOTIATE AGREEMENTS COVERING THE ENVIRONMENT LABOR STANDARDS AND SANCTIONS AS ADDITIONS TO NAFTA WHICH LIBERALIZES TRADE WITH MEXICO AND CANADA MR KANTOR STRESSED THAT THE NEGOTIATIONS WOULDN'T TRY TO UNRAVEL THE MAIN TEXT WHICH WAS SIGNED BY PRESIDENT BUSH LATE LAST YEAR AND IS EXPECTED TO GO INTO EFFECT JAN 1 1994 THE TOUGHEST PART OF THE NEGOTIATIONS WILL LIKELY CENTER ON ENFORCEMENT PROVISIONS THE US WANTS TO SET UP TRINATIONAL COMMISSIONS TO DEAL WITH LABOR AND ENVIRONMENTAL ISSUES LABOR UNIONS WANT THE LABOR BOARD OR US COURTS TO BE ABLE TO BLOCK GOODS AT THE BORDER IF THEY WERE MADE BY FACTORIES USING CHILD LABOR OR OTHER UNFAIR PRACTICES BUT MEXICAN OFFICIALS HAVE SAID THAT THEY WOULDN'T AGREE TO POWERFUL BOARDS BECAUSE THEY COULD INFRINGE MEXICAN SOVEREIGNTY MR KANTOR SAID THE SIDE DEALS MUST HAVE EFFECTIVE ENFORCEMENT MEASURES BUT HE DIDN'T SPELL OUT WHAT THOSE MEASURES SHOULD BE SOME TRADE SPECIALISTS HAVE SUGGESTED THAT THE BOARDS COULD EMPHASIZE PUBLIC HEARINGS ESSENTIALLY SHAMING THE PARTIES INTO ELIMINATING SHODDY LABOR OR ENVIRONMENTAL PRACTICES 9302180110 930218 INTERNATIONAL CHINA TO OPEN OIL FRONTIER TO FOREIGNERS INVITATION MARKS REVERSAL OF SELFRELIANCE POLICY COSTLY PIPELINE NEEDED BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA CONCLUDING THAT RUNNING OUT OF PETROLEUM WOULD BE WORSE THAN LOSING FACE HAS DECIDED TO OPEN ITS LAST OIL FRONTIER TO FOREIGN DRILLERS WANG TAO PRESIDENT OF CHINA NATIONAL PETROLEUM CORP SAID FOREIGN OIL COMPANIES CAN START BIDDING FOR RIGHTS TO EXPLORE AND DEVELOP OIL FIELDS IN 12 REGIONS IN NORTHERN AND WESTERN CHINA AMONG THEM IS A TEXASSIZED FRONTIER THAT FOREIGN COMPANIES HAVE BEEN ITCHING TO EXPLORE FOR YEARS THE TARIM BASIN IN XINJIANG PROVINCE WHICH CHINESE GEOLOGISTS SAY COULD HAVE AS MUCH OIL AS SAUDI ARABIA THE DECISION REPRESENTS SUCH A SIGNIFICANT REVERSAL OF POLICY THAT PREMIER LI PENG INVITED FOREIGN AMBASSADORS AND OIL EXECUTIVES TO A RECEPTION BEFORE MR WANG'S ANNOUNCEMENT CEREMONY APPARENTLY TO DEMONSTRATE THAT THE COUNTRY'S SENIOR LEADERSHIP BACKS THE DECISION THIS IS AN IMPORTANT PHILOSOPHICAL CHANGE FOR THEM SAID JON THOMPSON PRESIDENT OF EXXON CORP'S EXXON EXPLORATION CO UNIT WHO FLEW IN FROM HOUSTON FOR THE CEREMONY I THINK THERE WILL BE A LOT OF INTEREST THE REGIONS OPENED INCLUDE 161000 SQUARE MILES IN THE PROVINCES OF HEILONGJIANG HEBEI HENAN SHANDONG HUBEI GANSU QINGHAI INNER MONGOLIA XINJIANG AND THE CITY OF TIANJIN CHINA WHICH HAS HYPED ITS POTENTIAL RESERVES IN THE PAST ESTIMATES THE AREAS COULD HAVE 82 BILLION TONS OF OIL AND 88 TRILLION CUBIC FEET OF NATURAL GAS THE FIRST ROUND OF BIDDING IN MARCH WILL INVOLVE FIVE SECTORS WITH A TOTAL AREA OF 28000 SQUARE MILES FOREIGN OIL EXECUTIVES WELCOMED THE OPENING BUT SEVERAL OF THOSE AT THE CEREMONY SAID DEVELOPING THE TARIM AREA WOULD BE DIFFICULT THE OIL FINDS WOULD HAVE TO BE HUGE TO SUPPORT THE ENORMOUSLY EXPENSIVE PIPELINE THAT WOULD BE NEEDED TARIM IS 1600 MILES FROM THE NEAREST SEAPORT AND ALMOST THAT FAR FROM ANY CENTRAL DISTRIBUTION POINT IN CHINA ONE PROMISING SIGN WELLS THAT CHINA HAS DUG IN TARIM HAVE FAST RATES OF OIL FLOW THAT COULD SIGNIFY LARGE OIL FIELDS MEANWHILE CHINA APPEARS TO BE OFFERING FOREIGN BIDDERS A CHANCE TO EXPLORE IN SOME OF THE AREAS OF LOWEST POTENTIAL WITHIN THE NEW BASINS FOREIGN OIL EXECUTIVES SAID CHINA HASN'T RELEASED ANY SEISMIC DATA ON THE AREA SO IT IS IMPOSSIBLE TO KNOW JUST HOW MUCH OIL IS THERE CHINA ALSO SAID IT WOULD OPEN ITS EXISTING OIL FIELDS TO FOREIGN JOINT VENTURES WILLING TO EMPLOY ADVANCED TECHNOLOGY TO HELP EXTRACT OIL THAT CHINA'S EQUIPMENT CAN'T PULL OUT BUT FOREIGN OIL EXECUTIVES SAID THAT PARTICIPATING IN SUCH EFFORTS PROBABLY WOULDN'T BE LUCRATIVE ENOUGH UNLESS IT WAS COUPLED WITH SUCCESSFUL BIDS IN PLACES OF HIGH POTENTIAL UNTIL WEDNESDAY'S ANNOUNCEMENT CHINA'S OIL INDUSTRY HAD BEEN THE LAST BASTION OF MAO TSETUNG'S NATIONALISTIC PHILOSOPHY OF SELFRELIANCE IT DATES BACK TO 1960 WHEN 40000 WORKERS WERE DISPATCHED TO DEVELOP THE DAQING OIL FIELD IN THE NORTHEAST DAQING WHICH STILL PROVIDES 40 OF CHINA'S OIL BECAME A SYMBOL OF SELFSUFFICIENCY AND SOCIALIST ACHIEVEMENT IN THE EARLY 1980S OFFSHORE FIELDS IN THE SOUTH CHINA SEA WERE OPENED TO FOREIGN EXPLORATION WITH THE SAME BREATHLESS DESCRIPTIONS OF SAUDISIZED RESERVES DESPITE INVESTMENTS TOTALING SOME 25 BILLION ONLY A HALFDOZEN SMALL WELLS HAVE BEEN DEVELOPED IN 1986 FOREIGNERS WERE GIVEN ACCESS TO ONSHORE EXPLORATION IN 11 SOUTHERN PROVINCES BUT THE AREAS HAD SUCH LOW POTENTIAL THAT CHINA FOUND FEW TAKERS IN 1989 AFTER INTENSE LOBBYING BY WESTERN OIL COMPANIES CHINA'S SENIOR LEADERS CONSIDERED OPENING THE WESTERN BASINS BUT CHINA PETROLEUM PREVAILED AND 100000 WORKERS WERE DISPATCHED TO FIGHT THE BIG BATTLE FOR OIL IN TARIM WEDNESDAY'S ANNOUNCEMENT BY MR WANG FORMERLY A STRONG OPPONENT OF OPENING THE INLAND AREAS TO FOREIGNERS WAS AN ADMISSION THAT THAT BATTLE HAS BEEN LOST CHINA FACES THE PROSPECT OF BECOMING A NET IMPORTER OF OIL WITHIN THE NEXT FEW YEARS AND DESPERATELY NEEDS TO DEVELOP THE TARIM BASIN WHILE CHINA LAST YEAR HAD 12 GROWTH IN GROSS NATIONAL PRODUCT OIL PRODUCTION INCREASED ONLY 16 CHINA'S CURRENT OUTPUT IS ABOUT 27 MILLION BARRELS A DAY FOREIGN DIPLOMATS SAY THE DECISION TO OPEN THE WESTERN BASINS CAME AFTER INTENSE DEBATE AMONG SENIOR CHINESE LEADERS WITH PARAMOUNT LEADER DENG XIAOPING'S POLICY OF FAST ECONOMIC GROWTH AND INCREASED OPENING TO THE WEST OPPONENTS APPARENTLY WERE OVERWHELMED BY ARGUMENTS THAT A FAILURE TO QUICKLY PRODUCE MORE OIL COULD BRAKE CHINA'S ECONOMY 9302180109 930218 LETTERS TO THE EDITOR MAKE UP YOUR MIND AND STOP COMPLAINING MY HEART WAS NOT EXACTLY BROKEN BY YOUR JAN 28 ARTICLE A WIFE'S HIGHER PAY CAN TEST A MARRIAGE I BELIEVE THAT IN MOST MARRIAGES BOTH PARTIES ENTER WITH THEIR EYES OPEN NOT ONLY TO EACH OTHER FROM A PERSONAL SENSE BUT TO CAREER EXPECTATIONS I THINK THE FEMINIST ATTITUDE WAS ALREADY INGRAINED WHEN THE MARRIAGES TOOK PLACE DID YOU NOTICE ABOUT THESE COUPLES IN YOUR ARTICLE THAT THE WIVES RETAINED THEIR OWN MS NAMES AND DID NOT FOLLOW TRADITIONAL CHANGES TO THE HUSBAND'S SURNAME THE ONLY EXCEPTION MRS HILLARY CLINTON AS WE ALL KNOW CAUSED QUITE A FUROR SOMETIME BACK FOR KEEPING HER NAME WHICH SHE ULTIMATELY CHANGED THE WIFE WHO COMPLAINED ALSO ABOUT EARNING SO MUCH WHAT A PROBLEM THAT SHE COULDN'T TAKE OFF A YEAR TO SPEND WITH HER CHILDREN OR WORK ON SPECIAL PROJECTS OBVIOUSLY WANTS TO HAVE HER CAKE BAKED BY HER HUSBAND AND EAT IT TOO I HAVE TROUBLE FEELING SORRY FOR PEOPLE WHO AREN'T SURE WHO THEY ARE OR WHAT THEY WANT TO DO IN LIFE AND COMPLAIN LATER ESPECIALLY WITH THE JOINT INCOMES THAT THEY PROCURE FOR THEIR INCONVENIENCES 9302180108 930218 INVESTIGATORS CITE WING ICE IN FATAL USAIR '92 CRASH WASHINGTON AP THE FLIGHT CREW'S FAILURE TO DETECT ICE ON THE WINGS CAUSED A USAIR JETLINER TO GO QUICKLY OUT OF CONTROL AND PLUNGE INTO THE FRIGID WATERS DURING A FAILED TAKEOFF FROM NEW YORK'S LA GUARDIA AIRPORT FEDERAL INVESTIGATORS CONCLUDED TWENTYSEVEN OF THE 51 PEOPLE ABOARD USAIR'S FLIGHT 405 TO CLEVELAND DIED IN THE CRASH LAST YEAR USAIR IS A UNIT OF USAIR GROUP INC INVESTIGATORS WITH THE NATIONAL TRANSPORTATION SAFETY BOARD SAID THE PILOT'S ATTEMPT TO GET HIS PLANE INTO THE AIR AT TOO LOW A SPEED MAY HAVE ALSO CONTRIBUTED TO THE MARCH 22 ACCIDENT I DON'T BELIEVE THAT THE CREW OF THE AIRCRAFT REALIZED THAT A RELATIVELY TINY BIT OF ICE CONTAMINATION COULD GET THEM INTO A WHOLE LOT OF TROUBLE SAID ROBERT BENZON THE NTSB'S CHIEF INVESTIGATOR OF THE CRASH THE NTSB'S FINAL WRITTEN REPORT IS DUE OUT IN ABOUT FIVE WEEKS THE NTSB CONCLUDED THAT THE PROBABLE CAUSE OF THIS ACCIDENT WAS THE FAILURE OF THE AIRLINE INDUSTRY AND THE FEDERAL AVIATION ADMINISTRATION TO PROVIDE CREWS WITH PROPER GUIDELINES AND PROCEDURES TO DEAL WITH ICE CONTAMINATION 9302180107 930218 PENNZOIL DU PONT MULL FACILITY HOUSTON PENNZOIL CO AND DU PONT CONOCO A UNIT OF DU PONT CO SAID THEY HAVE INITIATED A STUDY TO EXPLORE THE FEASIBILITY OF CONSTRUCTING A LUBE OIL FACILITY AT CONOCO'S LAKE CHARLES LA REFINERY THE PROPOSED PROJECT WOULD INCREASE THE REFINERY'S CAPACITY TO PROCESS HEAVY SOUR CRUDE OIL BY 100000 BARRELS A DAY PENNZOIL AND DUPONT ESTIMATE THE MULTIMILLIONDOLLAR PROJECT IF APPROVED WOULD TAKE 33 MONTHS TO BUILD GENERATE 3500 CONSTRUCTION JOBS DURING PEAK CONSTRUCTION AND CREATE 250 PERMANENT JOBS 9302180106 930218 POLITICS & POLICY LOBBYIST'S COZY TIES WITH EXBOSS SEN HATCH INCLUDE CLIENT REFERRALS POLITICAL FUNDRAISING BY EDWARD T POUND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN ORRIN HATCH OF UTAH PRIDES HIMSELF ON TAKING CARE OF HIS CONSTITUENTS BUT NOBODY GETS BETTER CARE THAN HIS FORMER CHIEF OF STAFF THOMAS PARRY WHO HAS BUILT A PROSPEROUS LOBBYING BUSINESS HERE MR PARRY HAS SEN HATCH'S STAMP OF APPROVAL AND IT'S A MESSAGE NOT LOST ON A HOST OF CORPORATE CLIENTS I DO KNOW THAT HE SEN HATCH HAS GONE OUT OF HIS WAY TO SEND BUSINESS TO PARRY SAYS RICHARD RICHARDS A FORMER REPUBLICAN NATIONAL COMMITTEE CHAIRMAN AND HIMSELF A LOBBYIST SEN HATCH ACKNOWLEDGES AS MUCH AND MAKES NO APOLOGIES FOR IT I'M NOT ASHAMED TO RECOMMEND TOM PARRY HE SAYS HE'S A GOOD FRIEND OF MINE AND HE'S HONEST IT IS A MUTUALLY BENEFICIAL RELATIONSHIP LAST YEAR FOR INSTANCE SEN HATCH WAS ABLE TO POSTPONE TOUGH NEW FEDERAL RULES AIMED AT CURBING MISLEADING HEALTH CLAIMS BY MAKERS OF VITAMINS AND DIETARY SUPPLEMENTS RULES THAT WERE STRONGLY OPPOSED BY AMONG OTHERS AN ALLIANCE OF UTAH SUPPLEMENT COMPANIES REPRESENTED BY MR PARRY MR PARRY MEANWHILE IS A MAJOR FUNDRAISER FOR THE REPUBLICAN LAWMAKER'S POLITICAL AND CHARITABLE CAUSES AMONG MANY OF THOSE SAME CLIENTS IN THE HEALTHCARE AND PHARMACEUTICAL INDUSTRIES EXECUTIVES AND FAMILIES OF JUST ONE PARRY CLIENT CALIFORNIABASED HERBALIFE INTERNATIONAL INC WHICH MAKES WEIGHTLOSS PRODUCTS AND NUTRITIONAL SUPPLEMENTS GAVE AT LEAST 30000 TO SEN HATCH'S 1988 CAMPAIGN THEY GAVE ANOTHER 15000 LAST YEAR AS MR PARRY BEGAN GEARING UP FOR SEN HATCH'S 1994 REELECTION BID NOW THE LOBBYIST'S SIGHTS ARE SET ON BIGGER GAME THE SPECIALINTEREST POLITICAL ACTION COMMITTEES THAT DOMINATE THE FUNDRAISING LANDSCAPE HERE HE IS HELPING PLAN A BIG WASHINGTON FUNDRAISER TO BOOST SEN HATCH TOWARD HIS GOAL OF ABOUT 45 MILLION FOR 1994 SEN HATCH'S TIES TO MR PARRY WHO LEFT HIS EMPLOY A DECADE AGO DON'T APPEAR TO VIOLATE ANY LAWS OR SENATE RULES BUT THE CONNECTION IS JUST THE KIND OF COZY LAWMAKERLOBBYIST RELATIONSHIP THAT BILL CLINTON AND ROSS PEROT CAMPAIGNED AGAINST LAST FALL AND THAT IS FUELING CALLS FOR TIGHTER CURBS ON LOBBYING ALREADY MR CLINTON HAS ADOPTED NEW RULES BARRING TOP APPOINTEES FROM LOBBYING THEIR OLD OFFICES FOR FIVE YEARS AND SOME SENATORS WANT TO EXPAND THE CURRENT ONEYEAR COOLINGOFF PERIOD FOR TOP CONGRESSIONAL AIDES IN ADDITION COMMON CAUSE THE SELFSTYLED CITIZENS' LOBBY SAYS IT WILL PRESS FOR LEGISLATION REQUIRING LOBBYISTS TO DISCLOSE ALL FINANCIAL BENEFITS THEY PROVIDE MEMBERS INCLUDING FUNDRAISING GIFTS MEALS AND FREE TRIPS THE HATCHPARRY RELATIONSHIP DRAWS PARTICULAR SCRUTINY IN LIGHT OF SOME OTHER QUESTIONS RAISED ABOUT THE THREETERM SENATOR MR HATCH HAS A SMALL FINANCIAL STAKE IN A UTAH DRUG AND VITAMIN COMPANY AN INVESTMENT THAT IS CAUSING SOME DISCOMFORT GIVEN HIS STRONG SUPPORT OF THE PHARMACEUTICAL AND DIETARY SUPPLEMENT INDUSTRIES SEPARATELY HE REMAINS UNDER INVESTIGATION BY NEW YORK PROSECUTORS REVIEWING THE US ACTIVITIES OF THE FRAUDRIDDEN BANK OF CREDIT AND COMMERCE INTERNATIONAL THE INQUIRY INCLUDES SEN HATCH'S EFFORTS TO OBTAIN A BCCI LOAN FOR A BUSINESS ASSOCIATE MR HATCH ASKED THE SENATE ETHICS COMMITTEE TO INVESTIGATE AND SAYS HE WILL BE VINDICATED BY THE INQUIRY SEN HATCH A POWER ON THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE DENIES ANY WRONGDOING AND INSISTS HE DOESN'T USE HIS INFLUENCE TO FAVOR FRIENDS AND CONTRIBUTORS I DO WHAT I THINK IS RIGHT SAYS THE 58YEAROLD SENATOR ADDING THAT HE RECOMMENDS OTHER LOBBYISTS AS WELL AND SOMETIMES TAKES POSITIONS ADVERSE TO MR PARRY'S CLIENTS I AM NOT TRYING TO PAINT MY REAR END WHITE HE SAYS BUT EVERYBODY WHO KNOWS ME KNOWS I AM HONEST IN SEN HATCH'S VIEW HE IS ACTING NO DIFFERENTLY THAN MOST OTHER MEMBERS OF CONGRESS IN DEALING WITH FORMER AIDES WHO NOW ARE LOBBYISTS IT'S TRUE THAT MANY FORMER AIDES LOBBY THEIR OLD BOSSES AND SOLICIT MONEY FOR THEIR PERSONAL AND CAMPAIGN NEEDS BY ALL ACCOUNTS HOWEVER HIS RELATIONSHIP WITH MR PARRY IS PARTICULARLY CLOSE I HAD PEOPLE SAY TO ME IS ORRIN TELLING US IF WE DON'T USE PARRY HE WON'T HELP US' SAYS MR RICHARDS THE FORMER GOP CHAIRMAN I SAID NO ORRIN IS JUST TRYING TO HELP' A FORMER STAFFER BUT ADDS MR RICHARDS IT IS AN APPEARANCE PROBLEM IN SOME WAYS IT SEEMS AS IF MR PARRY 45 NEVER LEFT SEN HATCH'S PAYROLL HE CONTINUES AS A CHIEF ADVISER MEETING REGULARLY WITH MR HATCH AND A FEW TRUSTED AIDES TO DISCUSS POLITICAL AND LEGISLATIVE STRATEGY LAST YEAR HE HIRED ONE OF SEN HATCH'S SONS AS A RESEARCH ASSISTANT UNTIL 1991 HIS FIRM PARRY & ROMANI ASSOCIATES EVEN PROVIDED A SPACIOUS ROOM IN ITS THREESTORY TOWNHOUSE OFFICE FOR ANNUAL LEGISLATIVE STRATEGY SESSIONS CONDUCTED BY SEN HATCH AND HIS STAFF OF MORE THAN 50 PEOPLE MR PARRY WHO SAYS HE DIDN'T ATTEND THE SESSIONS PROVIDED FOOD AND SOFT DRINKS FOR THE GROUP THE SENATOR'S CHIEF AIDE WENDY HIGGINBOTHAM SAYS SHE STOPPED THE PRACTICE OF USING MR PARRY'S OFFICE IN ORDER TO MAKE SURE THINGS WERE KEPT SQUEAKY CLEAN BEFORE THE SENATE FORBADE MEMBERS TO POCKET SPEAKING HONORARIA IN 1991 MR PARRY'S FIRM OFTEN SET UP SPEAKING ARRANGEMENTS THAT PAID SEN HATCH 2000 A POP PARRY & ROMANI ASSOCIATES IS NAMED FOR ITS FOUNDERS MR PARRY AND ROMANO ROMANI ALSO AN ADEPT FUNDRAISER AND AN ASTUTE STRATEGIST MR ROMANI IS A FORMER AIDE TO SEN DENNIS DECONCINI AN ARIZONA DEMOCRAT WHO HAS WORKED CLOSELY WITH SEN HATCH MESSRS PARRY AND ROMANI WON'T SAY HOW MUCH THEY CHARGE CLIENTS BUT JUSTICE DEPARTMENT RECORDS GIVE SOME IDEA SHOWING THAT THEY CHARGED THE BAHAMAS GOVERNMENT 15000 A MONTH BACK IN 1988 AND ANOTHER CLIENT 7000 MONTHLY THE FIRM HAS ABOUT 30 ACTIVE CLIENTS ACCORDING TO A FORMER SENIOR EMPLOYEE AMONG THEM ARE HEAVY HITTERS IN THE DEFENSE AND MOVIE INDUSTRIES INCLUDING THE MOTION PICTURE ASSOCIATION OF AMERICA THE MOVIE TRADE GROUP WHICH MUST DEAL WITH MR HATCH ON THE JUDICIARY COMMITTEE MOVIEINDUSTRY EXECUTIVES HAVE BEEN BIG CAMPAIGN DONORS TO THE SENATOR LAST YEAR AT LEAST SEVEN CURRENT OR FORMER PARRY CLIENTS INCLUDING JOHNSON & JOHNSON NU SKIN INTERNATIONAL INC WARNERLAMBERT CO AND SCHERINGPLOUGH CORP CONTRIBUTED A TOTAL OF 62500 TO A UTAH CHARITY GOLF TOURNAMENT HOSTED BY SEN HATCH THE SENATOR HAS SOMETIMES GONE TO UNUSUAL LENGTHS TO HELP PARRY CLIENTS IN 1989 FOR INSTANCE HE FILED A FRIENDOFTHECOURT BRIEF WITH THE SUPREME COURT ON BEHALF OF ELI LILLY & CO WHICH WAS INVOLVED IN A COMMERCIAL DISPUTE WITH ANOTHER COMPANY SEN HATCH JOINED BY A HOUSE MEMBER ARGUED THAT A 1984 LAW HE COAUTHORED PROTECTED LILLY'S EXCLUSIVE PATENT ON A HEART PACEMAKER MR PARRY'S FIRM SAYS IT PLAYED NO ROLE IN THE MATTER LILLY EXECUTIVES AND THE COMPANY'S POLITICALACTION COMMITTEE KICKED IN 17500 TO SEN HATCH'S CAMPAIGN FUND BETWEEN 1985 AND 1988 LAST YEAR MR PARRY'S FIRM REPRESENTING AN ALLIANCE OF SIX UTAH DIETARY AND VITAMIN SUPPLEMENT COMPANIES WAS DEEPLY INVOLVED IN A NATIONWIDE LOBBYING EFFORT TO SUPPORT THE SENATOR'S PROPOSED HEALTH FREEDOM ACT WHICH WAS AIMED AT REMOVING US REGULATORY AUTHORITY OVER HEALTH CLAIMS FOR DIETARY SUPPLEMENTS ALTHOUGH SEN HATCH COULDN'T PASS THE BILL HE DID SUCCEED IN BLOCKING THE FOOD AND DRUG ADMINISTRATION FROM IMPOSING NEW LABELING RULES ON THE SUPPLEMENT INDUSTRY UNTIL DECEMBER 1993 SEN HATCH HIMSELF A SUPPLEMENTS CONSUMER INSISTS GOVERNMENT IS OVERREGULATING THE INDUSTRY ACCORDING TO A HATCH STAFFER HE FELT SO STRONGLY ABOUT THE ISSUE THAT HE SUMMONED HIS FORMER AIDE FDA COMMISSIONER DAVID KESSLER TO HIS OFFICE AND COMPLAINED THAT DR KESSLER HAD BEEN COOPTED BY FDA BUREAUCRATS PARRY AND ROMANI CLIENTS INVARIABLY INSIST THEY DON'T HIRE THE FIRM BECAUSE OF ITS ACCESS TO MR HATCH I'M NOT SAYING THAT THIS PERCEPTION MIGHT NOT BE THERE AND I'M NOT SAYING THIS PERCEPTION MIGHT NOT HAVE WORKED IN OUR FAVOR AT TIMES MR ROMANI SAYS BUT SEN HATCH IS SO ACCESSIBLE THERE IS VERY LITTLE REASON FOR ANYONE TO HIRE US TO GET TO ORRIN STILL BILL HADDAD CHAIRMAN OF THE GENERIC PHARMACEUTICAL INDUSTRY ASSOCIATION SAYS THE FIRM WAS VERY HELPFUL IN OPENING THE DOOR TO THE SENATOR IN 1984 WHEN MR HATCH ENDORSED THE GROUP'S PUSH FOR LEGISLATION TO SPEED THE APPROVAL PROCESS FOR CHEAPER GENERIC DRUGS MR HADDAD WHOSE TRADE GROUP STILL EMPLOYS THE LOBBYING FIRM SAYS THAT IF TRUTH BE TOLD WE WOULD HAVE NEVER HAD IT WITHOUT HATCH HE WAS THE KEY GUY MR PARRY EXPLAINS THAT HIS RELATIONSHIP WITH THE SENATOR IS BASED ON CREDIBILITY HE SAYS I SPENT SEVEN YEARS WORKING FOR THE SENATOR INVOLVED IN A LOT OF LEGISLATIVE BATTLES I THINK THAT HE HAS CONFIDENCE IN MY ADVICE AND INTEGRITY THAT I WOULD GIVE HIM MY BEST OPINION AND BEST ADVICE AS TO WHAT WOULD BE IN HIS BEST INTERESTS MR PARRY ISN'T THE ONLY FORMER AIDE TO HAVE ENJOYED THE SENATOR'S BLESSING HE ALSO HAS TOUTED OTHER FORMER AIDES DUBBED HATCHLINGS ON CAPITOL HILL WHO HAVE GONE INTO THE LOBBYING BUSINESS ONE IS C MCCLAIN HADDOW A DRUGCOMPANY LOBBYIST WHO MANAGED MR HATCH'S 1976 SENATE CAMPAIGN AND WHO LATER SERVED A PRISON SENTENCE AFTER PLEADING GUILTY TO CONFLICTOFINTEREST CHARGES GROWING OUT OF ACTIONS HE TOOK AS A TOP HEALTH OFFICIAL IN THE REAGAN ADMINISTRATION AMONG MR HADDOW'S CLIENTS IS MYLAN LABORATORIES INC A PITTSBURGHBASED GENERIC DRUG MAKER THAT HAS POURED BIG MONEY INTO SEN HATCH'S POLITICAL WAR CHEST AND CHARITY EVENTS MYLAN IS INVOLVED IN A RUNNING DISPUTE WITH THE FDA ACCUSING THE AGENCY OF HOLDING UP ITS DRUG APPROVALS IN RETALIATION FOR MYLAN'S ROLE IN UNCOVERING A SCANDAL INVOLVING THE GENERIC DRUG INDUSTRY AND AGENCY OFFICIALS IN JUNE 1991 TESTIMONY BEFORE A HOUSE PANEL SEN HATCH SUPPORTED MYLAN'S CHARGES ACCORDING TO MR HADDOW AND ANOTHER PERSON FAMILIAR WITH THE EVENTS MR HATCH'S REMARKS WERE ACTUALLY WRITTEN BY MR HADDOW THE MYLAN LOBBYIST SAYS HE GOT THE ASSIGNMENT FROM MR HATCH AFTER THE SENATOR EXPRESSED DISPLEASURE WITH A VERSION WRITTEN BY ANOTHER MYLAN LOBBYIST HE CALLED IT PABLUM SAYS MR HADDOW NANCY TAYLOR A FORMER HATCH AIDE AND NOW A WASHINGTON LOBBYIST MAINTAINS SHE WROTE THE TESTIMONY BUT ACKNOWLEDGES USING SOME OF MR HADDOW'S WORK SEN HATCH SAYS HE DOESN'T CARE WHO WROTE HIS TESTIMONY I DON'T CARE WHO HAS TRUTH RELATIONS BETWEEN MR HADDOW AND THE SENATOR HAVE SOURED SINCE THEN SEPARATELY MR HATCH'S DEALINGS WITH MYLAN ALSO HAVE BECAME STRAINED NONETHELESS MYLAN GAVE 20000 TO HIS CHARITY GOLF TOURNAMENT LAST AUGUST SEN HATCH'S TIES WITH MR PARRY AND MR HADDOW ARE ONLY ONE ASPECT OF HIS RELATIONSHIP WITH THE PHARMACEUTICAL INDUSTRY ANOTHER IS HIS SMALL HOLDING IN PHARMICS INC AN INVESTMENT VALUED BETWEEN 15000 AND 50000 PHARMICS IS PRIMARILY A REAL ESTATE COMPANY WITH HOLDINGS IN UTAH DEVELOPMENT PROPERTY BUT IT ALSO IS A WHOLESALE DISTRIBUTOR OF PRESCRIPTION AND OVERTHECOUNTER DRUGS AND VITAMINS WITH ANNUAL SALES OF NEARLY 300000 IN ONE EMBARRASSING SITUATION SEN HATCH INTRODUCED LEGISLATION IN 1990 THAT HIS STAFF SAYS WAS MEANT TO ASSIST NATIONAL PRODUCT SALES INC A SMALL SALT LAKE CITY COMPANY THAT ALSO HAD DEALINGS WITH PHARMICS THE COMPANY SALVAGES LOST OR UNCLAIMED PRESCRIPTION DRUGS FROM FREIGHT CARRIERS AND IT SOLD SOME OF THOSE SALVAGED DRUGS TO PHARMICS BEFORE THE TWO COMPANIES FELL OUT THOUGH A STATEMENT BY SEN HATCH SUPPORTING THE MEASURE APPEARED IN THE CONGRESSIONAL RECORD THE SENATOR MAINTAINS THE BILL WAS INTRODUCED BY HIS STAFF WITHOUT HIS KNOWLEDGE IT WAS WITHDRAWN LAST SPRING SEN HATCH ACKNOWLEDGES ONLY A FRIVOLOUS APPEARANCE PROBLEM IF ANY SAYING HE DIDN'T KNOW OF THE FINANCIAL TIES BETWEEN PHARMICS AND NATIONAL PRODUCT SALES THE SENATOR SAYS HE IS MERELY A PASSIVE INVESTOR IN PHARMICS WHICH IS CONTROLLED BY HIS FORMER LAW PARTNER WALTER J PLUMB III MR PLUMB SAYS HE IS GOING TO SELL OFF THE ADDITIONAL 23 OF PHARMICS STOCK HE OWNS JOINTLY WITH MR HATCH TO AVOID ANY FURTHER APPEARANCE PROBLEMS MR PLUMB MANAGES SOME OF THE SENATOR'S OTHER INVESTMENTS AND SAYS HE STILL OWES HIM AT LEAST 120000 FROM THE BUYOUT OF THEIR LAW PARTNERSHIP 16 YEARS AGO MR HATCH HAS FAILED TO ACCURATELY REPORT THE DEBT ON HIS FINANCIAL DISCLOSURE FORMS IN AN INTERVIEW HE SAID HE MADE A MISTAKE IN FAILING TO INCLUDE INTEREST HE WAS CHARGING MR PLUMB AND WOULD CORRECT THIS YEAR'S FORMS 9302180105 930218 COUNTERPOINT FINALLY A PRESIDENT DOES THE RIGHT THING BY KEVIN PHILLIPS LAST NIGHT PRESIDENT CLINTON TOOK AN IMPORTANT STEP TOWARD TURNING AMERICA AWAY FROM THIRD WORLDSTYLE POLARIZATION AND EASING THE GROWING WAVE OF CLASS RESENTMENT NOTICED AND DEPLORED EVEN BY THE EDITORIALISTS OF THIS NEWSPAPER BUT THE NEW DEMOCRATIC PRESIDENT FACES AN UNPRECEDENTED TASK HE MUST OVERCOME THE CRIPPLING LEGACY OF A 12YEAR GOP DEFICIT BUILDUP AND A SPECIALINTERESTORIENTED CONGRESS CONTROLLED BY HIS OWN PARTY NOT SINCE FRANKLIN ROOSEVELT HAS A PRESIDENT SO BOLDLY PROVOKED AND CHALLENGED THE NATION'S FINANCIAL AND ECONOMIC ELITES MR CLINTON'S INDICTMENT OF UNFAIR REAGANBUSH TAX POLICIES IS THE STRONGEST SINCE FDR'S JUNE 1935 DEMAND THAT CONGRESS PASS THE WEALTH TAX ACT BECAUSE OUR REVENUE LAWS HAVE OPERATED IN MANY WAYS TO THE UNFAIR ADVANTAGE OF THE FEW AND THEY HAVE DONE LITTLE TO PREVENT UNJUST CONCENTRATION OF WEALTH AND POWER MR CLINTON AND FDR ARE SIMILAR IN OTHER WAYS JUST AS THE REALITY OF 1933 FORCED FDR TO BREAK HIS YEARBEFORE CAMPAIGN PROMISES TO REDUCE SPENDING AND WORK FOR A BALANCED BUDGET THE HARSH REALITIES OF 1993 ARE FORCING MR CLINTON TO BREAK HIS CAMPAIGN PROMISE NOT TO INCREASE MIDDLECLASS TAXES WHAT THE DEMOCRATS MUST HOPE IS THAT MIDDLECLASS AMERICANS WILL ONCE AGAIN PERCEIVE A BROADER RELATIONSHIP BETWEEN THEMSELVES AND THE DEMOCRATIC PARTY MR CLINTON'S PROBLEM IS THAT HE FACES MUCH MORE COMPLEXITY THAN FDR WHOSE TROUBLES ALSO INHERITED FROM AN OUTGOING GOP ADMINISTRATION DID NOT INCLUDE TODAY'S HUGE DEFICITS THESE DEFICITS SEEM TO REQUIRE TAX INCREASES ON THE ORDINARY VOTERS WHOM THE NEW PRESIDENT PLEDGED TO PROTECT HERE THE PRESIDENT MUST SLASH AT A GORDIAN KNOT OF THREE CONVERGING CIRCUMSTANCES THE FIRST IS THREE YEARS OF DECLINING MIDDLECLASS PROSPERITY IN WHICH FEDERAL STATE AND LOCAL TAXES ROSE TO CONSUME A RECORD 37 CENTS OF EACH DOLLAR OF AVERAGE FAMILY INCOME THE SECOND IS THE NEED TO REVERSE THE ECONOMIC BIAS TOWARD THE RICH OF THE REAGAN AND BUSH YEARS THE THIRD IS THE RECORD 300 BILLIONAYEAR FEDERAL BUDGET DEFICIT NO DEMOCRATIC PROGRAM CAN SUCCEED WITHOUT CONFRONTING ALL THREE REALITIES PERVERSELY THE DEMOCRATS WILL BE HELD TO A HIGHER STANDARD OF ACHIEVEMENT IN DEFICIT REDUCTION THAN THE REPUBLICANS WERE THE REAGAN AND BUSH ADMINISTRATIONS IN BALLOONING THE DEFICIT FROM 75 BILLION IN 1980 TO 300 BILLION IN 1993 AND ENLARGING THE NATIONAL DEBT FROM ONE TRILLION TO FOUR DID SO FOR REASONS RELATIVELY ACCEPTABLE TO THE FINANCIAL MARKETS LIKE FACILITATING A DEFENSE BUILDUP LETTING UPPERBRACKET INCOME TAX RATES BE SLASHED OR REMAIN LOW AND BAILING OUT AMERICA'S RECKLESSLY MANAGED MINORITY OF S&LS AND COMMERCIAL BANKS AS DAVID STOCKMAN REVEALED HIGHLEVEL DEFICITS ALSO SERVED TO STYMIE THE INTRODUCTION OF NEW FEDERAL PROGRAMS DEMOCRATIC PRESIDENTS BY CONTRAST HAVE AN IMAGE OF BEING WASTEFUL AND INCLINED TO SPEND MONEY ON SUCH THINGS AS HEALTH JOB RETRAINING EDUCATION AND THE CITIES OF COURSE MORE THAN BONDMARKET SUSPICIONS NOW FORCE MR CLINTON TO TAKE THE FEDERAL BUDGET DEFICIT SERIOUSLY ROSS PEROT'S 1992 CHARTS HELPED THE AVERAGE AMERICAN AND ESPECIALLY THE AVERAGE PEROT VOTER COME TO FEAR THE DEFICIT'S EFFECT ON THE NATION'S FUTURE MOREOVER AS MR CLINTON UNDERSCORED IN MONDAY'S TRAILER SPEECH THE BURDEN OF PAYING THE INTEREST ON DEFICITS HAS BEEN CONSUMING MORE AND MORE FEDERAL TAX REVENUE MOST OF THE MONEY IS COLLECTED IN TAXES ON LOW AND MIDDLEINCOME AMERICANS BUT PAID OUT IN INTEREST DISPROPORTIONATELY TO HIGHINCOME AMERICANS AND FOREIGN BONDHOLDERS SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN HAS CALLED IT A TRANSFER OF WEALTH FROM LABOR TO CAPITAL UNEQUALED IN AMERICAN HISTORY SO BRINGING DOWN THE DEFICIT ACTUALLY HAS A LOGIC FOR DEMOCRATS ESPECIALLY IF A FAIR PART OF THAT REDUCTION CAN BE ACHIEVED BY INCREASING THE TAXES ON THE TOP 1 OF AMERICANS WHO GOT SO MUCH OF THE NEW INCOME AND WEALTH GENERATED IN THE 1980S ON THE OTHER HAND THERE'S NO WAY THE HITHERTOFAVORED RICH CAN BEAR MORE THAN PART OF THE BURDEN AND FOR A DEFICITREDUCTION PROGRAM TO HAVE BAREBONES CREDIBILITY ON MAIN STREET TO SAY NOTHING OF WALL STREET SOME OF THE NEW TAX INCREASES AND SPENDING CUTS MUST BE IMPOSED ON THE MIDDLE CLASS MR CLINTON IS DOING SO BUT AS PART OF A LARGER PLEDGE TO TARGET THE RICH AND END THE SOAK THE MIDDLE TAX POLICIES OF THE PAST DECADE IN THOSE YEARS SOCIAL SECURITY TAXES WERE RAISED ENOUGH TO OFFSET THE ORDINARY FAMILY'S MUCHTOUTED INCOME TAX CUTS AND THE INTERNAL REVENUE SERVICE WAS URGED TO CONCENTRATE ITS ENFORCEMENT EFFORTS ON THE MIDDLE CLASSES RATHER THAN ON RICH TAX AVOIDERS IN MR CLINTON'S NEW TAX PLAN 70 OF THE BURDEN WILL FALL ON HOUSEHOLDS MAKING OVER 100000 A YEAR INDEED POPULIST THEMES OF UPLIFTING THE ORDINARY HOUSEHOLD AND ENDING REPUBLICAN BIAS TOWARD THE RICH AND WALL STREET SUFFUSED MR CLINTON'S CAMPAIGN AND HELPED TRAP GEORGE BUSH INTO AN ELECTORAL DISASTER IN WHICH THE GOP INCUMBENT RECEIVED JUST 375 OF THE TOTAL VOTE AND UNDERPERFORMED HERBERT HOOVER'S 1932 SHOWING BY TWO PERCENTAGE POINTS MUCH AS MR CLINTON MAY CHERISH HIS ROOSEVELT AND TRUMAN ANALOGIES THEY ARE INCOMPLETE IN RAISING TAXES ON THE RICH IN THE 1930S TO REVERSE THE PERMISSIVENESS AND POLARIZATION OF THE 1920S FDR HAD NO DEFICIT HANGOVER TO MUDDLE HIS FISCAL POLITICS MR CLINTON HOWEVER MUST JEOPARDIZE HIS APPEAL TO THE SAME MIDDLEINCOME FAMILIES WITH WHOM ONLY SIX MONTHS AGO HE WAS COMMISERATING ABOUT THEIR BEING DESTROYED BY MR BUSH AND THE GOP AS FOR TRUMAN WHEN HE FOUGHT CONGRESS IN 194748 OVER TAX FAVORITISM FOR THE RICH AND WON PARTLY BY LABELING HIS FOES BLOODSUCKERS WITH OFFICES IN WALL STREET HE COULD BE CANDID EVEN EXTREME BECAUSE HE WAS FIGHTING THE REPUBLICAN 80TH CONGRESS IF THE NEW PRESIDENT CAN ENACT HIS ECONOMIC PROGRAM UNDER THESE CIRCUMSTANCES IT WILL BE A STUNNING POLITICAL ACHIEVEMENT THE ODDS HOWEVER ARE THAT JUST AS THE FAMOUS WORLD WAR II ALLIED AIRBORNE INVASION OF HOLLAND WAS SAID TO GO A BRIDGE TOO FAR MR CLINTON IS IN A POSITION OF HAVING TO GO A POLITICAL AND FISCAL COMPLEXITY TOO FAR DEALING WITH MIDDLECLASS TAX INCREASES FOR DEFICIT REDUCTION AND MANEUVERING WITH A SPECIALINTEREST CONGRESS OF HIS OWN PARTY THE BATTLE TO REVERSE THE OMISSIONS AND FAVORITISMS OF THE 1980S IS UNLIKELY TO BE MORE THAN PARTIALLY SUCCESSFUL BUT THEN IT IS ALSO JUST BEGINNING MR PHILLIPS'S NEW BOOK IS BOILING POINT DEMOCRATS REPUBLICANS AND THE DECLINE OF MIDDLE CLASS PROSPERITY JUST PUBLISHED BY RANDOM HOUSE 9302180104 930218 LEISURE & ARTS OPERA SINGING NOBLEMEN AND KEENING MAIDENS BY MANUELA HOELTERHOFF NEW YORK ARNOLD SCHONBERG'S ERWARTUNG A HALFHOUR'S WORTH OF DEMENTED WAILING BY A LONE SOPRANO IS A WORK EVEN ENTERPRISING NEW YORKERS ARE PROBABLY NOT PANTING TO SEE WHILE IT IS NOT OFTEN DONE IT SO HAPPENS THAT THE MET IN A FIT OF ADVENTUROUSNESS ACTUALLY STAGED IT A FEW SEASONS AGO TOGETHER WITH BELA BARTOK'S BLUEBEARD'S CASTLE FOR JESSYE NORMAN AND THE SIGHT OF THE DIVA PUTTERING ABOUT THE STAGE WONDERING WHERE SHE STUFFED HER LOVER'S CORPSE IS PROBABLY AND NOT TOO FONDLY ENGRAVED IN THE MINDS OF MANY WHO SAW IT IDEALLY THEN THOSE OF US EAGER FOR UNUSUAL REPERTOIRE MIGHT HAVE WISHED THE CANADIAN OPERA COMPANY TO BRING SOMETHING OTHER THAN THESE EXPRESSIONISTIC TWINS TO ITS GUEST STINT AT THE BROOKLYN ACADEMY OF MUSIC BUT NOT LONG INTO BLUEBEARD ONE COULD SEE WHY THE COMPANY CHOSE THIS DOUBLE BILL IT PROVED WELLSUITED TO SHOWCASE WITHOUT OVERBURDENING ROBERT LEPAGE THE TRENDY 34YEAROLD FRENCHCANADIAN DIRECTOR AND PERFORMANCE ARTIST THE TWO PIECES MARKED HIS OPERA DEBUT AND NEVER MIND SOME SLOPPY LIGHTING CUES SUGGESTED A DIRECTOR WHO CAN MAKE MUSIC PALPABLE WITH MOVEMENT AND LIGHT AND A MINIMUM OF SCENIC CLUTTER AS BLUEBEARD OPENED A MODEL OF HIS CASTLE GLOWED MYSTERIOUSLY IN THE DISTANT DARKNESS LIKE SOME UNOBTAINABLE BAUBLE AS THE DUKE AND HIS BRIDE WALKED SLOWLY ACROSS THE STAGE THEN SUDDENLY THEY REAPPEARED INSIDE HIS SWEATING BLOODSOAKED HOME RENDERED BY MICHAEL LEVINE AS A CLAUSTROPHOBIC SPACE THAT WITH SOME ADJUSTMENTS ALSO SERVED ERWARTUNG WELL AS EACH OPERA DREW TO A CLOSE A POOL OF BLOOD GLISTENED AT THE EDGE OF THE STAGE AWAITING BLUEBEARD'S JUDITH AND ERWARTUNG'S NAMELESS MAN WITHOUT BELABORING CONNECTIONS MR LEPAGE SUGGESTED THE ELEMENTAL THEMES OF DELUSION AND BETRAYAL FESTERING NEAR THE CORE OF BOTH WORKS BLUEBEARD WAS MORE TRADITIONALLY REPRESENTED AND OFTEN VISUALLY UNDERWHELMING MORE MIGHT HAVE BEEN DONE WITH PROJECTIONS LIGHT AND COLOR TO EVOKE THE MYSTERIES STASHED BEHIND THE DOORS THE EFFECTS WERE LEFT MOSTLY TO THE ORCHESTRA PLAYING VIVIDLY FOR COC CHIEF CONDUCTOR RICHARD BRADSHAW PARTICULARLY IN THAT SHATTERING MOMENT WHEN THE FIFTH DOOR BURSTS OPEN ON BLUEBEARD'S ENDLESS REALMS STILL THE PROCESSION OF MURDERED WIVES RISING SLOWLY FROM THE BLOODY DEEP HAD GRAVE BEAUTY IN ERWARTUNG MR LEPAGE IMPROVISED MORE INTRIGUINGLY ON THE MURKY TEXT GIVING PHYSICAL REALITY TO THE WOMAN'S WANDERING HYSTERICAL ANNOYING CHATTER MOVING FROM THE ASSUMPTION THAT SHE HAS INDEED MURDERED HER LOVER HE SUBSTITUTED AN ASYLUM FOR THE LIBRETTO'S FOREST AND AS SHE SLIPPED FROM SANITY INTO THE CONSTANTLY SHIFTING LANDSCAPE OF THE MAD SO DID THE STAGE FROM WALLS AS POROUS AS HER MIND HUMAN ARMS SNAKED OUT OF OPENINGS OR TURNED INTO BRANCHES THE INVENTED FIGURE OF A FREUDLIKE DOCTOR SLOWLY TURNED IN HIS CHAIR UNTIL HE WAS SEATED SIDEWAYS ALTOGETHER ENOUGH HAPPENED TO COMPENSATE FOR THE INACTION OF THE STORY AND THE MANIACALLY DENSE ATONAL GESCHREI THOUGH REBECCA BLANKENSHIP WAS REMARKABLE IN HER ATHLETIC MOVEMENTS AND VOCAL EASE BLUEBEARD ALSO SHOWED OFF TWO EXCELLENT SINGERACTORS THE BARITONE VICTOR BRAUN AND THE SOPRANO JANE GILBERT A SMALLER COMPANY BY FAR THE PETITE OPERA FRANCAISE WHICH TURNS UP NOW AND AGAIN AT MANHATTAN'S ALLIANCE FRANCAISE MADE A SIMILARLY BIG IMPRESSION RECENTLY WITH A PERFORMANCE OF GIOACCHINO ROSSINI'S LE COMTE ORY IT TOOK PLACE IN THE ALLIANCE'S FLORENCE GOULD AUDITORIUM WHOSE ABSENCE OF CHARM AND COMFORT BECAME INSTANTLY LESS OPPRESSIVE AS THIS JOYOUSLY SILLY PIECE ABOUT A BUNCH OF DOPES IN MEDIEVAL FRANCE GATHERED SPEED UNDER THE FLEXIBLE BATON OF YVES ABEL THE TROUPE'S YOUNG MUSIC DIRECTOR LEADING A SMALL ORCHESTRA AND CHORUS MR ABEL GOT THE KIND OF SNAPPY GRACEFUL PERFORMANCE WE WOULD LIKE TO HEAR IN LARGER HOUSES WHERE ROSSINI IS MOSTLY HANDED OFF TO HACKS WHAT A FINE SCORE THIS IS NOT AS GRANDLY SILLY AS ROSSINI'S OWN VIAGGIO A REIMS FROM WHICH HE FREELY RECYCLED MANY CHOICE TUNES BUT A BRIGHT ROMP NONETHELESS EAGER TO SEDUCE THE VIRTUOUS COUNTESS STUCK INSIDE HER CASTLE WHILE HER HUSBAND IS ON A CRUSADE ORY DONS THE DISGUISES OF A SOOTHSAYING HERMIT AND A DRUNK NUN THIS WAS A CONCERT PERFORMANCE BUT SURPRISINGLY FUNNY EVEN SO IN A KIND OF FUNKY WITH IT WAY RARELY SEEN IN THESE NORMALLY STILTED GATHERINGS OF BADLY DRESSED SINGERS HANGING TIGHTLY ONTO THE SCORE REACHING SWEATILY FOR THEIR WATER GLASSES NOT OFTEN HAVE WE SEEN SUCH AN ARRAY OF INTERESTING PERSONALITIES DELIVERING THE MUSIC WITH PANACHE AND HUMOR IN PARTICULAR JEFFREY FRANCIS CUT A SPLENDID FIGURE AS ORY WHICH HE SANG WITH A SANCTIMONIOUS AIR A MANLY CUTTING TONE AND THE NIMBLEST OF TECHNIQUES HE COMPLETELY CONFIRMED THE EXCELLENT IMPRESSION HE MADE IN IL TURCO IN ITALIA AT OPERA THEATRE OF SAINT LOUIS LAST SUMMER AS THE BESIEGED COUNTESS LAUREN FLANAGAN WAS EQUALLY AMUSING WITH HER MOPEY MIEN AND INTRIGUING SOPRANOUNUSUALLY HUED AND HUGE YET AGILE AND EXPRESSIVE THERE WASN'T ANYONE IN THE LARGE CAST I DIDN'T LIKE PROBABLY A FIRST FROM KRISTINE JEPSON AS THE PAGE ISOLIER TO JOY HERMALYN AS THE COUNTESS'S REALLY COOL CONFIDANTE AND JAN OPALACH AS THE GOVERNOR AND PHILIP COKORINOS AS RAIMBAUD A RETAINER THEY ALL MADE ONE WISH TO SEE THIS WORK STAGED MAYBE BY MR LEPAGE WHICH WAS NOT QUITE THE FEELING LEFT BEHIND BY LA STRANIERA A VINCENZO BELLINI TRAGEDY EVE QUELER REVIVED AT CARNEGIE HALL THE OTHER NIGHT AS SO OFTEN WITH THE BOLD MS QUELER AND HER OPERA ORCHESTRA OF NEW YORK THE REVIVAL BROUGHT WITH IT THE DUAL PLEASURE OF HEARING SOMETHING FAIRLY UNFAMILIAR AND KNOWING THAT IF ONE MOVED CAREFULLY THROUGH THE OPERA WORLD ONE WOULD PROBABLY NEVER HAVE TO HEAR IT AGAIN THIN AND LONG LA STRANIERA WAS WRITTEN IN 1829 AND THEN PARTLY RECAST IN A HIGHER MODE BY BELLINI FOR HIS FAVORITE TENOR GIOVANNI BATTISTA RUBINI HE OF THE FABLED TOP RANGE AND VAST TECHNICAL SKILL BUT NEVER MIND THE COMPOSER'S EXTRA EFFORT THE PART OF ARTURO REMAINS ESSENTIALLY UNGRATEFUL AND STITCHED INTO AN UNBELIEVABLY CONFUSING LIBRETTO THE STRANIERA OR LADY OF MYSTERY IS A VEILED FRENCH QUEEN WHO SKULKS ABOUT A LAKESIDE HUT WHERE ARTURO MISTAKENLY STABS HER LOVER WHO FALLS INTO THE WATER ONLY TO BE RESCUED BY ARTURO WHEN HE REALIZES THAT THE LOVER IS ACTUALLY HER BROTHER OH WHY DIDN'T ROSSINI GET HIS HAMMY HANDS ON THIS FARCE THIS WAS APPARENTLY THE FIRST MODERN OUTING FOR THE RUBINI VERSION AND IT BROUGHT TO THE STAGE THE TENOR GREGORY KUNDE WHO PRESENTED HIMSELF WITH SUCH AUTHORITY ONE WISHED HE HAD BEEN ACCORDED GREATER MUSIC AND A MORE COLORFUL VOICE YET THERE WAS MUCH TO ADMIRE IN HIS DISPATCH OF DIFFICULT PASSAGES AND EVIDENT MUSICALITY GAETAN LAPERRIERE STEPPED IN FOR AN ABSENT ITALIAN SINGING BROTHER VALDEBURGO WITH A PLEASANTLY RESONANT BARITONE AND A HAND CUPPED OVER HIS LEFT EAR HE WAS FLAT NONETHELESS MOSTLY THOUGH THE ATTENTION CENTERED ON RENEE FLEMING AS THE QUEEN A PART THAT ONCE BRIEFLY ATTRACTED MARIA CALLAS AND MONTSERRAT CABALLE WHOSE BILLOWING DIVA PERSONALITIES MAY HAVE OBSCURED THE ROLE'S EMPTY CENTER MS FLEMING A SOPRANO WITH A PENSIVE PRESENCE HAD TO RELY ON HER VOICE A GENERALLY FINE INSTRUMENT WITH A LUMINOUS MIDDLE AND FOR COLORATURA SINGING SOMEWHAT CHANCY TOP NOTES IT IS ALAIDE'S SPUN LINES THAT BELLINI INVESTED WITH PARTICULAR POETRY MS FLEMING CERTAINLY SANG THEM WITH GREAT COMMITMENT AND WITHOUT A SCORE THE ONLY SINGER TO HAVE MEMORIZED HER MUSIC GOOD LORD WHAT A FRIGHTENING THOUGHT DOES SHE INTEND TO SING IT AGAIN SOMEWHERE 9302180103 930218 SOUTHWESTERN BELL'S CHARGE SAN ANTONIO SOUTHWESTERN BELL CORP SAID IT WILL TAKE A CHARGE OF 19 MILLION OR SIX CENTS A SHARE IN THE FIRST QUARTER FOR EARLY REDEMPTION OF 450 MILLION IN LONGTERM DEBT AT ITS TELEPHONE UNIT THE COMPANY'S SOUTHWESTERN BELL TELEPHONE CO UNIT WILL REDEEM THE 9625 BONDS DUE 2019 ON MARCH 19 AT 10563 PLUS ACCRUED INTEREST IN THE 1992 FIRST QUARTER SOUTHWESTERN BELL REPORTED NET INCOME OF 2616 MILLION OR 87 CENTS A SHARE ON REVENUE OF 229 BILLION THE EARNINGS INCLUDED A ONETIME CHARGE OF 235 MILLION OR EIGHT CENTS A SHARE FOR RETIREMENT BENEFITS 9302180102 930218 AS WITH ANY PRESIDENT'S RECIPES THEY ADD AT LEAST A GRAIN OF SALT BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MENU AT SLICK WILLIE'S A RESTAURANT OFFICIALLY CHRISTENED ON INAUGURATION DAY PROUDLY DISPLAYS ITS LINE OF WILLIE BURGERS THE BIG WILLIE A DOUBLE CHEESEBURGER IS FOR THOSE WITH A PRESIDENTIAL APPETITE THOUGH WEEKEND MANAGER LAURA HESSBURG CONCEDES THAT IT'S PROBABLY KIND OF HIGH IN CHOLESTEROL FOR PRESIDENT CLINTON HE MIGHT ALSO STEER CLEAR OF THE LITTLE ROCK BURGER WHICH HAS TWO KINDS OF CHEESE PLUS BARBECUE SAUCE LESS DAUNTING ARE THE PLAIN WILLIE AND THE CHEESE WILLIE DINERS CAN WASH THEM DOWN WITH A SLICK WILLIE ALE OR A CHILLI WILLIE MILKSHAKE MS HESSBURG SAYS THAT DESPITE SOME OF THE LESSTHANFLATTERING NAMES SLICK WILLIE'S IS MEANT AS A TRIBUTE TO THE PRESIDENT THE PENNSYLVANIA AVENUE RESTAURANT ISN'T THE ONLY EATERY TRYING TO RIDE THE WAVE OF THE NEW ADMINISTRATION ARKANSAS BARBECUE CATFISH ARKANSAS HAM AND HICKORYSMOKED BACON ARE SOME OF THE DISHES THAT HAVE CREPT ONTO MENUS AT SUCH WASHINGTON RESTAURANTS AS THE PALM CAFE PROMENADE NICHOLAS AND CF FOLKS SOME OFFERINGS SUCH AS THE CONCERT VINEYARD RED AND WHITE WINES SERVED AT CAFE PROMENADE QUALIFY AS AUTHENTIC ARKANSAS FARE OTHERS LIKE THE PORK BARBECUE AT CF FOLKS ARE DISHES CARRIED OVER FROM PREVIOUS ADMINISTRATIONS WITH AN ARKANSAS LABEL PASTED ON THE OLD GLORY RESTAURANT FOR ONE HAS TRIED TO FERRET OUT GENUINE ARKANSAS CUISINE AND HIGHLIGHT THE PRESIDENT'S PERSONAL FAVORITES ACTING ON A TIP THE BARBECUE RESTAURANT RECENTLY FEATURED STUFFED ANAHEIM CHILIES THAT FROM WHAT WE HEAR FROM THE SECRET SERVICE IS PROBABLY ONE OF BILL'S FAVORITE DISHES SAYS THE MANAGER BOB CERRONE HE ADDS THAT THE SECURITY PEOPLE EVEN SLIPPED HIM THE RECIPE OLD GLORY'S CHEF IS RESEARCHING OTHER POSSIBLE ENTREES AND SAUCES CONTAINED IN A COOKBOOK CONCOCTED BY THE CHEF FOR THENGOV CLINTON OF ARKANSAS HOWEVER MR CERRONE SAYS THE SEARCH FOR A UNIQUE ARKANSAS BARBECUE HAS BEEN DIFFICULT HE SAYS THERE JUST ISN'T MUCH TO DISTINGUISH ARKANSAS BARBECUE FROM OTHER SORTS BUT THAT DOESN'T KEEP IT OFF WASHINGTON MENUS THESE DAYS MR SMITH'S WHICH PROCLAIMS ITSELF THE FRIENDLIEST SALOON IN TOWN DOESN'T WANT TO TAKE SIDES IN THE POLITICAL ARENA SO IT ALSO OFFERS PEROT BURGERS WHICH OWNER JAMES HIGHT DESCRIBES AS A REGULAR BURGER THAT'S ALL SCRAMBLED ON TOP 9302180100 930203 DEADBEAT DAD DIVORCES FACT FROM FICTION BY RANDY SALZMAN LEGALLY I'M A DEADBEAT DAD ONE OF THOSE SUPPOSEDLY AWFUL MEN PRESIDENT CLINTON HAS PLEDGED TO BRING INTO COMPLIANCE WITH THE LAW WHILE I SUPPORT AND RAISE MY EXWIFE'S SON FROM A PREVIOUS MARRIAGE I AM NOT ABLE OR WILLING TO PAY CHILD SUPPORT FOR MY DAUGHTER IN THE MYTHS OF OUR BUMPERSTICKER CULTURE AN ABSENTEE FATHER RUNS AROUND IN A LUXURY CAR A BIMBO ON EACH ARM HIRING SLICK LAWYERS WHILE A MOTHER STRUGGLES TO FIND TIME FOR THE CHILDREN BETWEEN HER TWO JOBS AND A MAILBOX FULL OF BILLS THAT POLITICALLY CORRECT STEREOTYPE IS WHAT INSPIRED CONGRESS TO PASS A BILL MAKING FATHERS IN ARREARS FACE SIX MONTHS IN PRISON AND A 5000 FINE ATOP ALREADY GARNISHEED WAGES AND CREDIT BUREAU LIENS IN REALITY THE WILLINGNESS AND ABILITY TO PAY CHILD SUPPORT IS CLOSELY ALLIED TO CUSTODY AND PARENTAL RESPONSIBILITY IT CANNOT SIMPLY BE COMPELLED BY LEGISLATIVE FIAT IN ISOLATION FROM THESE MATTERS AS PERHAPS MY OWN CASE WILL SHOW LESS THAN SIX WEEKS AFTER OUR DIVORCE IN 1988 MY EXWIFE MARRIED A SOLDIER BOUND FOR GERMANY CHILD SUPPORT ARRANGED WITH NO KNOWLEDGE OF HER PLANS HADN'T SEEMED A BURDEN WHEN I COULD SEE AND HUG MY STEPSON AND DAUGHER BUT WHEN THEY MOVED OVERSEAS THE CHECKS SEEMED TO DISAPPEAR INTO A DARK HOLE IN THREE YEARS I HEARD FROM MY EXWIFE ONCE WHEN MY STEPSON WAS IN TROUBLE WITH A TEACHER I RARELY HAD A LETTER FROM EITHER OF MY KIDS I THOUGHT OF MYSELF AS A SUGAR DADDY IN A ONEWAY RELATIONSHIP WHEN THEY CAME BACK TO GEORGIA WHERE I LIVED I WAS ECSTATIC IN SPITE OF THE FINANCIAL BURDEN THAT LAY AHEAD IN 1991 I GROSSED 5021 I PAID 1850 TO MY EXWIFE HAD MY TENNIS SHOES RESOLED AND NURSED MY VAN THROUGH ITS NINTH YEAR OF DIMINISHING SERVICE I QUIT PAYING CHILD SUPPORT IN 1992 WHEN MY STEPSON UNHAPPY LIVING WITH HIS MOTHER MOVED IN WITH ME I SIMPLY COULD NOT AFFORD TO SUPPORT HIM AND ALSO SEND CHILDSUPPORT TO MY EXWIFE BUT WITH THE TWIN POWERS OF THE STATE AND POPULAR MYTH BEHIND HER MY EXWIFE DEMANDED HER DUE THE ONLY WAY I COULD EXTRICATE MYSELF WAS TO GO BACK TO COURT AND GET A JUDGE TO AMEND THE SUPPORT ORDER OTHERWISE I'D BE IN VIOLATION OF THE OLD ONE I FURNISHED A FACTUAL ACCOUNT OF WHY I COULD NOT RESUME PAYMENTS BUT WAS UNABLE TO COME UP WITH THE MINIMUM 1500 LEGAL FEE TO FILE FOR A REDUCTION IN CHILD SUPPORT AS I COULDN'T AFFORD TO PAY SUPPORT HOW COULD I AFFORD TO PAY AN ATTORNEY MY OWN CASE IS REPRESENTATIVE IN CERTAIN WAYS NOT IN OTHERS MANY FATHERS QUIT PAYING CHILD SUPPORT SOON AFTER DIVORCE ACCORDING TO TESTIMONY HEARD IN 1991 BY THE US COMMISSION ON INTERSTATE CHILD SUPPORT IN GEORGIA 478000 GEORGIA WOMEN WERE OWED 403 MILLION IN CHILD SUPPORT IN 1990 NO DOUBT THERE ARE DODGERS BUT FOR OTHERS THE MATTER IS MORE COMPLICATED TO A FATHER DENIED THE SIGHT OF HIS DAUGHTER'S PIANO RECITAL OR HIS SON'S JUMP SHOT AT THE BUZZER CHILD SUPPORT IS THE MODERN EQUIVALENT OF TAXATION WITHOUT REPRESENTATION IN ITS 17YEAR EXISTENCE FEDERAL CHILD SUPPORT POLICY HAS PROVED AMAZINGLY INEFFECTIVE THREE TIMES UNCLE SAM HAS THROWN TOUGHER PUNITIVE MEASURES AGAINST DEADBEAT DADS EACH NEW LAW HAILED AS THE SOLUTION TO NONPAYMENT BUT THE RECORD IS ANOTHER MATTER THE COMMERCE DEPARTMENT REPORTS LESS THAN HALF THE COURTMANDATED 11 BILLION IN CHILD SUPPORT IS PAID THIS IS DOWN FROM 1983 WHEN THE CENSUS BUREAU REPORTED 71 BILLION OF 10 BILLION OWED IN CHILD SUPPORT WAS COLLECTED AND EVEN AS FEDERAL AND STATE CHILDSUPPORTCOLLECTION BUREAUCRACIES BURGEON THE NUMBER OF WOMEN RECEIVING ANY MONEY HAS HELD EVEN TRUE DEADBEATS WILL ALWAYS BE THAT ADDITIONAL CONSTRAINTS SUCCEED ONLY IN ALIENATING FATHERS TRYING HOPELESSLY TO BE GOOD ABSENTEE PARENTS JOINT CUSTODY SHOULD BECOME THE RULE AND EVERY JUDGE SHOULD ASK EACH DIVORCING COUPLE WHY THEY SPEND SO MUCH TIME DIVIDING POSSESSIONS AND SO LITTLE TIME DECIDING THE CUSTODY ISSUE A RECENT STUDY FROM THE CENTER FOR POLICY RESEARCH FOUND THAT AMONG THE 426 FAMILIES ANALYZED OVER A THREEYEAR PERIOD 95 OF FATHERS WITH JOINT RESIDENTIAL CUSTODY AND 81 WITH JOINT LEGAL CUSTODY MET THEIR FULL OBLIGATIONS FURTHER THIS RESEARCH INDICATED THAT EXTRA PAYMENTS FOR MEDICAL AND LIKE CONTRIBUTIONS INCREASED DRAMATICALLY WHEN FATHERS WERE ALLOWED REGULAR VISITATION THE AUTHORS CONCLUDED THAT WOMEN IN JOINT CUSTODY ARRANGEMENTS ARE GENERALLY SATISFIED WITH BOTH THE MONETARY AND CUSTODY AGREEMENTS FRIENDS SAY THAT MY DAUGHTER WHOM I NOW SEE EVERY WEEK WILL SOMEDAY COME TO LIVE WITH ME TODAY I'M HEARTENED BY THE FACT THAT MY EXWIFE'S SON NOW LIVES WITH ME BUT I EXPECT THAT IF AND WHEN MY DAUGHTER ASKS TO MOVE IN I WILL STILL BE REQUIRED TO PAY CHILD SUPPORT TO MY EXWIFE UNLESS I GO BACK TO PETITION THE COURT EXPENSIVE LEGAL COUNSEL AT MY SIDE MR SALZMAN A FORMER PROFESSOR OF JOURNALISM AND COMMUNICATION IS A PARTTIME VIDEOPHOTOGRAPHER IN AUGUSTA GA SEE RELATED LETTER LETTERS TO THE EDITOR SUPPORTING A CHILD ISN'T A MATTER OF CHOICE WSJ FEB 18 1993 9302030093 9302180099 930218 GENEVA STEEL TO INCREASE PRICES VINEYARD UTAH GENEVA STEEL CITING STRONGER DEMAND SAID IT WILL RAISE PRICES 20 A TON ON ALL HOTROLLED COIL PRODUCTS APRIL 4 GENEVA SAID PRELIMINARY ANTIDUMPING PENALTIES AGAINST FOREIGN STEELMAKERS MAKE IT A GOOD TIME TO BOOST PRICES THE STEELMAKER ALSO SAID IT WILL RAISE TRANSACTION PRICES 10 A TON ON PLATE PRODUCTS APRIL 4 9302180098 930218 YOU CAN'T ALWAYS SHOUT FORECAST' IN A CROWDED MEETING CHIPSOFT DISAVOWS EXECUTIVE'S EARNINGS OUTLOOK DELIVERED AMID STOCK OFFERING PERIOD BY LAURIE DELATER WEEKS SPECIAL TO THE WALL STREET JOURNAL NEW YORK PLEASE DISREGARD THOSE COMMENTS BY OUR CHIEF FINANCIAL OFFICER THAT'S THE UNUSUAL MESSAGE FROM CHIPSOFT INC FOLLOWING REMARKS THE COMPANY'S TOP FINANCIAL OFFICIAL MADE TO REPORTERS LAST WEEK IT SEEMS CHIPSOFT'S CHIEF FINANCIAL OFFICER WILLIAM H LANE III SHOULDN'T HAVE DISCUSSED THE TAX SOFTWARE COMPANY'S EARNINGS OUTLOOK WITH REPORTERS AT A CONFERENCE SPONSORED BY PIPER JAFFRAY OF MINNEAPOLIS MINN CHIPSOFT IS IN THE MIDST OF SELLING STOCK TO THE PUBLIC IN SUCH CASES THE SECURITIES AND EXCHANGE COMMISSION DOESN'T WANT COMPANIES TO PROJECT FINANCIAL RESULTS BUT RATHER TO LIMIT COMMENTS TO INFORMATION IN PROSPECTUSES FOR THE OFFERINGS LATE TUESDAY THE SAN DIEGO CALIF COMPANY ISSUED A NEWS RELEASE SAYING MR LANE INADVERTENTLY EXCEEDED THE LIMITATIONS OF THE COMPANY'S ESTABLISHED POLICIES IN TALKING WITH REPORTERS AND THAT HIS COMMENTS WERE NOT AUTHORIZED AND SHOULD NOT BE RELIED UPON MR LANE WAS UNAVAILABLE FOR COMMENT LAST THURSDAY MR LANE TOLD REPORTERS THAT HE WAS REASONABLY COMFORTABLE WITH FISCAL 1993 EARNINGS ESTIMATES OF 37 CENTS TO 38 CENTS A SHARE WHICH WOULD REFLECT SOME DILUTION FROM THE COMPLETION OF THE SHARE OFFERING THE COMPANY IS UNABLE TO PRECISELY PROJECT ITS FUTURE EARNINGS PER SHARE CHIPSOFT SAID ON TUESDAY NO ASSURANCE CAN BE GIVEN THAT EARNINGS ESTIMATES OF 37 CENTS TO 38 CENTS PER SHARE OR ANY OTHER ANALYST'S ESTIMATES WILL BE MET YESTERDAY CHIPSOFT'S SHARES FELL 1 TO 15 IN OVERTHECOUNTER TRADING DEBRA KELLEY A COMPANY SPOKESWOMAN SAID WHAT INVESTORS SHOULD TAKE AWAY FROM THE WHOLE THING IS THAT WE'RE NEITHER CONFIRMING NOR DENYING ANALYST ESTIMATES AND IT'S POLICY NOT TO DO SO ASKED IF MR LANE WAS FAMILIAR WITH THE POLICY SHE SAID SHE BELIEVED HE WAS CHIPSOFT'S PENDING OFFERING OF 34 MILLION SHARES 18 MILLION OF WHICH WOULD BE SOLD BY THE COMPANY AND THE REST BY STOCKHOLDERS WILL BE COMPLETED AFTER THE MARKET'S CLOSE TODAY AT THE EARLIEST SAID KEN FITZSIMMONS MANAGING DIRECTOR OF ROBERTSON STEPHENS & CO THE LEAD UNDERWRITER MR FITZSIMMONS SAID THE INVESTMENT BANK REALIZED THE EARNINGS OUTLOOK GIVEN BY CHIPSOFT'S CHIEF FINANCIAL OFFICER LAST WEEK COULD CAUSE A PROBLEM WITH THE SEC BECAUSE OF THE COMPANY'S PENDING STOCK OFFERING CHIPSOFT YESTERDAY FILED A DISAVOWAL OF THE EARNINGS PROJECTION WITH THE SEC APPARENTLY CLEARING THE WAY FOR THE OFFERING TO PROCEED UNFORTUNATELY THE CFO GOT HIMSELF INTO A BIND THAT HE DIDN'T KNOW HE WAS IN MR FITZSIMMONS SAID IT WAS ONE OF THOSE UNFORTUNATE INCIDENTS 9302180097 930218 MOLSON MULLS STOCK REPURCHASE TORONTO MOLSON COS SAID IT IS CONSIDERING BUYING BACK AS MANY AS 45 MILLION OF ITS CLASS A NONVOTING SHARES AND UP TO 765000 OF ITS CLASS B VOTING SHARES REPRESENTING 10 AND 5 OF EACH CLASS OF STOCK RESPECTIVELY MOLSON SAID IT WOULD FINANCE THE SHARE REPURCHASES WITH FUNDS FROM THE PROPOSED SALE OF A PART OF ITS BREWING DIVISION TO MILLER BREWING CO A UNIT OF PHILIP MORRIS COS MOLSON EXPECTS TO RECEIVE 180 MILLION CANADIAN DOLLARS US143 MILLION FROM THE SALE THE SHARE REPURCHASE PROGRAM IF CARRIED OUT IN FULL WOULD COST MOLSON C1375 MILLION BASED ON CURRENT MARKET PRICES IN TORONTO STOCK EXCHANGE TRADING YESTERDAY MOLSON CLASS A SHARES CLOSED AT C2625 UP 625 CANADIAN CENTS THE CLASS B SHARES CLOSED AT C26 UP 125 CANADIAN CENTS 9302180096 930218 RAISING CORPORATE TAXES WON'T RAISE REVENUES BY BRUCE BARTLETT AMONG THE PROPOSALS PRESIDENT CLINTON PUT FORWARD LAST NIGHT IS AN INCREASE IN THE BASIC CORPORATE INCOME TAX RATE A MAJOR JUSTIFICATION FOR THIS ACTION IS THE DECLINE OF CORPORATE TAXES AS A SHARE OF FEDERAL REVENUE FROM ALMOST A QUARTER OF FEDERAL REVENUES IN THE 1960S TO LESS THAN 10 CURRENTLY TO THE PRESIDENT THIS IS FURTHER EVIDENCE THAT ONLY THE RICH BENEFITED FROM THE TAX POLICIES OF THE 1980S AND THAT CORPORATIONS ARE NOT PAYING THEIR FAIR SHARE AN EXAMINATION OF THE DATA HOWEVER REVEALS A DIFFERENT PICTURE AS A SHARE OF CORPORATE PROFITS THE EFFECTIVE CORPORATE TAX RATETOTAL FEDERAL STATE AND LOCAL TAXES PLUS ANY OTHER TAXES ON BUSINESSWAS WELL OVER 40 IN THE 1960S THE RATE BEGAN A STEADY DECLINE DURING THE 1970S THE CORPORATE TAX RATE HIT A LOW OF 337 IN 1979 DURING THE CARTER ADMINISTRATION BEFORE MOVING UP SHARPLY DURING THE REAGAN ADMINISTRATION IN 1986 TAXES AS A SHARE OF CORPORATE PROFITS REACHED ALMOST 50 AS CORPORATIONS ADJUSTED TO THE EFFECTS OF THE TAX REFORM ACT OF 1986 WHICH LOWERED THE STATUTORY CORPORATE TAX RATE TO 34 FROM 46 IT SHIFTED INCOME INTO FUTURE YEARS WHEN THE TAX RATE WOULD BE LOWER ALTHOUGH THE EFFECTIVE CORPORATE TAX RATE HAS FALLEN SINCE THEN MAINLY DUE TO THE EFFECTS OF THE RECESSION AT 37 THE EFFECTIVE TAX RATE IS WELL ABOVE THE RATE DURING THE LAST DEMOCRATIC ADMINISTRATION THE REAL SOURCE OF WEAKNESS IN CORPORATE REVENUES IS NOT LOW TAX RATES BUT THE DECLINE OF CORPORATE PROFITS AS THE FIGURE SHOWS CORPORATE PROFITS AS A SHARE OF GROSS DOMESTIC PRODUCT HAVE FALLEN STEADILY OVER TIME AND SHARPLY SINCE THE LATE 1970S CURRENTLY CORPORATE PROFITS AMOUNT TO LESS THAN 6 OF GDP THERE ARE MANY EXPLANATIONS FOR THE DECLINE IN CORPORATE PROFITS TWO MAJOR CAUSES ARE THE SHIFT FROM EQUITY TO DEBT FINANCING BY CORPORATIONS AND THE DECLINE OF TRADITIONAL CORPORATIONS AS A FORM OF BUSINESS ORGANIZATION THE MAJOR REASON FOR THE DECLINE OF EQUITY FINANCE AND THE RISE OF DEBT FINANCE IS THAT DIVIDEND PAYMENTS ARE NOT TAX DEDUCTIBLE WHEREAS INTEREST PAYMENTS ARE THUS INTEREST PAYMENTS BY CORPORATIONS HAVE SHARPLY INCREASED OVER TIME THEREBY REDUCING REPORTED PROFITS THIS SITUATION WILL NOT BE REVERSED BY RAISING THE CORPORATE TAX RATE RAISING THAT RATE WILL PROBABLY ACCELERATE THE TREND SINCE EACH DOLLAR OF TAX DEDUCTION WILL NOW BE WORTH MORE IN TERMS OF LOWER TAXES THE DECLINE OF THE CORPORATION AS A FORM OF BUSINESS ORGANIZATION IS ALSO RELATED TO TAXES AT PRESENT CORPORATE PROFITS ARE DOUBLETAXED FIRST AT THE CORPORATE LEVEL AND AGAIN WHEN PROFITS ARE PAID OUT TO SHAREHOLDERS THUS ALTHOUGH THE TOP CORPORATE TAX RATE IS 34 AND THE TOP INDIVIDUAL RATE IS 31 THE TAX ON DISTRIBUTED CORPORATE PROFITS CAN BE AS HIGH AS 545 AND THIS TIME I AM NOT COUNTING STATE AND LOCAL AND OTHER TAXES WHICH CAN PUSH THE RATE STILL HIGHER IN RESPONSE BUSINESSES ARE NOW INCREASINGLY ORGANIZED AS PARTNERSHIPS SOLE PROPRIETORSHIPS OR SUBCHAPTER S COMPANIES ALL OF WHICH TAX PROFITS ONLY ONCE AGAIN THE RESULT IS TO REDUCE REPORTED PROFITS BY CORPORATIONS THE INESCAPABLE CONCLUSION IS THAT A RISE IN THE CORPORATE TAX RATE IS NOT LIKELY TO RAISE ADDITIONAL REVENUE IT WILL SIMPLY ACCELERATE THE TRENDS TOWARD DEBT FINANCE AND A SHIFT OUT OF THE CORPORATE FORM OF BUSINESS IT WILL ALSO INCREASE THE PRESSURE ON CONGRESS TO REINSTATE VARIOUS TAX LOOPHOLES THAT WERE ABOLISHED IN THE 1986 ACT IN RETURN FOR LOWER RATES THE CLINTON ADMINISTRATION PLANS TO GET THIS BALL ROLLING ITSELF BY BRINGING BACK THE INVESTMENT TAX CREDIT WHICH WAS REPEALED IN 1986 BECAUSE IT BIASED CORPORATE INVESTMENT DECISIONS AND WAS OF NO VALUE TO FIRMS WITHOUT PROFITS SUCH AS NEW STARTUPS THEY HAD NO TAX LIABILITY AGAINST WHICH TO APPLY THE CREDIT INSTEAD OF RAISING TAX RATES AND ADDING NEW CORPORATE TAX EXPENDITURES TO THE TAX CODE A BETTER APPROACH WOULD BE TO ABOLISH THE CORPORATE INCOME TAX ALTOGETHER TREAT ALL FORMS OF BUSINESS AS PARTNERSHIPS WITH ALL PROFITS AND LOSSES FLOWING THROUGH TO THE OWNERS WHO ARE THE CORPORATION'S SHAREHOLDERS THIS CAN EVEN BE DONE IN SUCH A WAY AS TO RAISE TOTAL REVENUE AS SHOWN IN A TREASURY DEPARTMENT STUDY PUBLISHED LAST YEAR THE RESULT WILL BE A CLEANER MORE EFFICIENT TAX CODE THAT WILL LOWER THE COST OF CAPITAL AND STIMULATE INVESTMENT MR BARTLETT A VISITING FELLOW AT THE CATO INSTITUTE IN WASHINGTON WAS A SENIOR ECONOMIST AT THE TREASURY DURING THE REAGAN AND BUSH ADMINISTRATIONS 9302180095 930218 S&P LOWERS RATING ON OUTLOOK FOR 2 UNITS OF AMERICAN FINANCIAL A WALL STREET JOURNAL NEWS ROUNDUP STANDARD & POOR'S CORP SAID IT LOWERED ITS DEBTRATING OUTLOOK ON PENN CENTRAL CORP TO NEGATIVE FROM STABLE S&P SAID THE MOVE WAS IN RESPONSE TO GREAT AMERICAN COMMUNICATIONS CO'S PROPOSAL TO FILE A PREPACKAGED CHAPTER 11 BANKRUPTCY REORGANIZATION PLAN CINCINNATIBASED PENN CENTRAL AND GREAT AMERICAN ARE UNITS OF CINCINNATI FINANCIER CARL H LINDNER'S CLOSELY HELD AMERICAN FINANCIAL CORP A HOLDING COMPANY S&P ALSO LOWERED THE DEBT RATING ON AMERICAN ANNUITY GROUP AN INSURANCE AFFILIATE OF AMERICAN FINANCIAL THE RATINGOUTLOOK CHANGE AFFECTS PENN CENTRAL'S SUBORDINATED DEBT RATED TRIPLEBMINUS AND AMERICAN ANNUITY'S SUBORDINATED DEBT RATED SINGLEBMINUS ABOUT 6506 MILLION OF DEBT IS AFFECTED S&P SAID A GREAT AMERICAN BANKRUPTCYLAW FILING WOULD RESULT IN A SIGNIFICANT DILUTION OF AMERICAN FINANCIAL'S OWNERSHIP AND A SUBSTANTIAL REDUCTION IN ITS COMMON STOCK S&P SAID THE RATINGS CHANGES FOR PENN CENTRAL AND AMERICAN ANNUITY REFLECT THE UNCERTAINTY SURROUNDING A POTENTIAL GREAT AMERICAN BANKRUPTCYLAW FILING AND ITS IMPACT ON AMERICAN FINANCIAL S&P SAID IT PLANS TO DISCUSS CREDIT QUALITY WITH MANAGEMENT OF THE AFFECTED COMPANIES 9302180094 930218 CLINTON'S ECONOMIC PACKAGE IMPORTANT CAMPAIGN PROMISES ARE LEFT IN DUST BY PRESIDENT BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THAT CRASH YOU MAY HAVE HEARD LAST NIGHT WAS THE SOUND OF CAMPAIGN PROMISES BREAKING PRESIDENT CLINTON'S ECONOMIC PLAN LEAVES IN SHARDS SOME OF THE MOST IMPORTANT PLEDGES OF HIS CAMPAIGN FOR THE PRESIDENCY ESPECIALLY THE HOPE OF TAX RELIEF FOR MIDDLEINCOME AMERICANS IN HIS ELECTIONYEAR MANIFESTO PUTTING PEOPLE FIRST MR CLINTON FLATLY PROMISED TO LOWER THE TAX BURDEN ON MIDDLECLASS AMERICANS BY OFFERING THEM THE CHOICE OF A CHILDREN'S TAX CREDIT OR A SIGNIFICANT REDUCTION IN THEIR INCOME TAX RATE NEITHER WAS PROPOSED IN LAST NIGHT'S PACKAGE INSTEAD MIDDLEINCOME FAMILIES' TAXES WOULD RISE UNDER MR CLINTON'S NEW BROADBASED ENERGY TAX THE HUGE ENERGY TAX 71 BILLION OVER FIVE YEARS ITSELF BREAKS ANOTHER MAJOR PLEDGE NOT TO RAISE TAXES ON THE MIDDLE CLASS TO PAY FOR SPENDING PROGRAMS JUST A FEW DAYS BEFORE THE ELECTION HE SAID AT A TOWN MEETING IN NEW JERSEY THAT PEOPLE WHO WOULD BE ELIGIBLE FOR SOME SORT OF TAX RELIEF AND WOULD BE IMMUNIZED FROM PAYING ANY MORE WOULD BE FAMILIES WITH FAMILY INCOME OF 80000 A YEAR OR LESS MR CLINTON'S PACKAGE ALSO VIOLATES HIS PROMISE IN PUTTING PEOPLE FIRST TO CUT THE DEFICIT IN HALF WITHIN FOUR YEARS INSTEAD THE NEW PLAN WOULD CUT THE PROJECTED FISCAL 1993 DEFICIT OF 319 BILLION TO 2065 BILLION IN FISCAL 1997 A CUT OF ONLY A THIRD FOR MR CLINTON THE BIG QUESTION IS HOW MAD PEOPLE WILL BE ABOUT HIS BROKEN PROMISES HE HAS SPENT THE PAST SEVERAL WEEKS PREPARING THE AMERICAN PEOPLE FOR DISAPPOINTMENT ABOUT THEM CITING WHAT HE CALLS A SURPRISING SURGE IN THE PROJECTED SIZE OF THE DEFICIT SINCE THE ELECTION MANY EXPERTS THOUGH DOUBT THAT HE COULD REALLY HAVE BEEN THAT SURPRISED BECAUSE MUCH OF THE BAD NEWS ABOUT THE DEFICIT WAS PUBLICLY UNDERSTOOD LONG BEFORE ELECTION DAY MR CLINTON'S BIGGEST ASSET MAY BE THAT MOST AMERICANS EXPECT TO HAVE TO MAKE SOME SACRIFICE AND SAY THEY ARE WILLING TO DO SO IF THEY SEE GOOD COMING FROM IT THE MOST RECENT WALL STREET JOURNAL/NBC NEWS POLL FOUND THAT 79 BELIEVED THEIR TAXES WOULD INCREASE AND 58 SAID THEY WOULD BE WILLING TO PAY THOSE HIGHER TAXES IF THE PROCEEDS WENT TOWARD DEFICIT REDUCTION WE WOULD BE CONDEMNING HIM IF HE DIDN'T PULL BACK FROM HIS CAMPAIGN PROMISES BECAUSE HE WOULD BE AN IRRESPONSIBLE PRESIDENT SAYS THOMAS MANN OF THE BROOKINGS INSTITUTION IF HE IS ABLE TO EXPLAIN THE PLAN AND WHY HE IS DOING IT PEOPLE WILL ACCEPT IT THE PRESIDENT ARGUES THAT RATHER THAN FOCUSING ON SPECIFIC ELEMENTS OF THE PACKAGE IT SHOULD BE SUBJECTED TO AN OVERALL COSTBENEFIT ANALYSIS EARLIER THIS WEEK HE TOLD DEMOCRATIC CONGRESSIONAL LEADERS I THINK MOST MIDDLECLASS AMERICANS WHEN YOU LOOK AT THE COST PLUS THE BENEFITS ARE GOING TO BE MUCH MUCH BETTER OFF WITH THE WHOLE PACKAGE HE ADDED THE PRICE IS A SMALL ONE COMPARED TO THE LONGTERM ECONOMIC HEALTH OF THEIR OWN BUSINESSES AS WELL AS THE ECONOMY IN ADDITION TO THE BIG BROKEN PROMISES ON TAXES AND DEFICIT REDUCTION A NUMBER OF OTHER SMALLER PROMISES ARE BEING LEFT UNFULFILLED FOR INSTANCE HIS ASSERTION THAT HE WOULD PUT EVERY DOLLAR TAKEN OUT OF PROJECTED MILITARY SPENDING INTO CONVERSION PROGRAMS DESIGNED TO CREATE NONMILITARY JOBS ALSO DIDN'T COME TO PASS LESS THAN ONEQUARTER OF HIS PROPOSED 76 BILLION IN MILITARY CUTS OVER FOUR YEARS IS PUT INTO CONVERSION PROGRAMS MR CLINTON'S PLAN ALSO DOESN'T INCLUDE THE SPECIAL CIVILIAN DEPARTMENT OF ADVANCED RESEARCH THAT HE PROMISED WOULD MATCH THE ONE IN THE PENTAGON HE ADDITIONALLY PROPOSES TO STRETCH OUT THE CONSTRUCTION OF THE SUPERCONDUCTING SUPERCOLLIDER RATHER THAN SUPPORTING ITS COMPLETION AS HE HAD ONCE ADVOCATED MR CLINTON ALSO PROMISED HE WOULD REQUIRE THE NATION'S 726 FEDERAL LABORATORIES TO DEVOTE FROM 10 TO 20 OF THEIR ANNUAL 23 BILLION BUDGET TO JOINT VENTURES WITH INDUSTRY INSTEAD HIS PLAN ALLOCATES 146 MILLION OVER FIVE YEARS FOR COMMERCIAL TECHNOLENT IN NONMILITARY LABS STILL THE PRESIDENT'S PACKAGE DOES KEEP SOME OF HIS KEY CAMPAIGN PLEDGES AS PROMISED HE'S PROPOSING TO RAISE TAXES ON UPPERINCOME AMERICANS AND TO CREATE TAX INCENTIVES FOR BUSINESS TO INVEST IN NEW PLANT AND EQUIPMENT MR CLINTON ALSO ISN'T PROPOSING TO TAMPER WITH SOCIAL SECURITY AND MEDICARE BENEFITS THOUGH HE'S SEEKING TO INCREASE THE PORTION OF SOCIAL SECURITY BENEFITS SUBJECT TO TAXATION FOR FINANCIALLY BETTEROFF RECIPIENTS 9302180093 930218 LETTERS TO THE EDITOR SUPPORTING A CHILD ISN'T JUST A MATTER OF CHOICE AS THE SPONSOR OF ONE OF THE CHILD SUPPORT ENFORCEMENT PROVISIONS RANDY SALZMAN DECRIES DEADBEAT DAD DIVORCES FACT FROM FICTION EDITORIAL PAGE FEB 3 I WANT TO POINT OUT TWO FLAWS IN HIS REASONING FIRST HIS COMPLAINT IS NOT REALLY ABOUT CHILD SUPPORT HE ACKNOWLEDGES THAT HIS CHILD SUPPORT PROBLEM COULD BE SOLVED IF HE WENT BACK TO COURT HIS COMPLAINT IS ABOUT THE FEE FOR A LAWYER AND EVEN THAT MAY BE MISPLACED SINCE HE APPEARS TO BE ARTICULATE ENOUGH TO REPRESENT HIMSELF IN A FAMILY COURT PROCEEDING SECOND HE IS CONFUSED ABOUT THE PURPOSE OF CHILD SUPPORT CHILD SUPPORT IS NOT A FEEFORSERVICES ARRANGEMENT PLENTY OF CUSTODIAL PARENTS ARE DEEPLY DISSATISFIED WITH THEIR RELATIONSHIPS WITH THEIR CHILDREN SUPPORTING ONE'S CHILDREN IS EVERY PARENT'S OBLIGATION NO MATTER WHERE THE CHILDREN LIVE I SPONSORED THE LAW THAT TOOK EFFECT ON JAN 1 1993 THAT PUTS CHILD SUPPORT DELINQUENCY ON MR SALZMAN'S CREDIT REPORT JUST LIKE ANY OTHER BAD DEBT I'M SORRY HE DOESN'T LIKE IT BUT IF HIS CHILD SUPPORT ORDER IS OUTDATED HE SHOULD HAVE IT REVISED OTHERWISE HE SHOULD HELP SUPPORT HIS DAUGHTER 9302180092 930218 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ENVIROPLAN INC AN INITIAL OFFERING OF 172 MILLION COMMON SHARES WITH A 258000 SHARE OVERALLOTMENT OPTION NEW ENGLAND INVESTMENT CO A SUBSIDIARY OF NEW ENGLAND MUTUAL LIFE INSURANCE AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC OLD AMERICA STORES INC AN INITIAL OFFERING OF 333 MILLION COMMON SHARES VIA LAZARD FRERES & CO PAREXEL INTERNATIONAL CORP AN INITIAL OFFERING OF 3115 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO AND ROBERTSON STEPHENS & CO STARTER CORP AN INITIAL OFFERING OF 775 MILLION COMMON SHARES VIA MERRILL LYNCH & CO BEAR STEARNS & CO INC DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND LEHMAN BROTHERS 9302180091 930218 REVERE ARMORED INVESTIGATION WIDENS ON SUSPICION OF OVERSTATED DEPOSITS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE INVESTIGATION INTO MISSING BANK FUNDS AT REVERE ARMORED INC HAS WIDENED TO INCLUDE THE POSSIBILITY THAT ITS CUSTOMERS SHORTCHANGED THE BANKS WHEN THEY MADE DEPOSITS THROUGH THE BOHEMIA NY ARMORED TRUCK COMPANY THE NEW TWIST IN THE CASE SURFACED YESTERDAY DURING A COURT HEARING WHEN JEFFREY STARK REVERE'S TEMPORARY RECEIVER SAID ABOUT 40 MILLION THAT SHOULD HAVE BEEN HELD AT REVERE FOR SEVEN BANKS APPEARED TO BE MISSING AFTER HIS REPORT FEDERAL BUREAU OF INVESTIGATION AGENT BRUCE BRADY RAISED THE QUESTION OF WHETHER THERE WAS A SCHEME IN WHICH REVERE CUSTOMERS GAVE REVERE DEPOSIT SLIPS FOR LARGER AMOUNTS THAN IT PICKED UP MR STARK SAID ABOUT 1000 UNOPENED DEPOSIT BAGS SEIZED AT REVERE WILL BE RETURNED TO THE DEPOSITORS AND A COUNT WILL BE MADE IN THEIR PRESENCE TO SEE WHETHER THE FIGURES ON THE DEPOSIT SLIPS MATCH THE CONTENTS OF THE BAGS THE FBI WOULD LIKE TO SEE IF A CURRENT DISCREPANCY MIGHT BE INDICATIVE OF PAST ACTIVITY SAID MR STARK MR STARK SAID SUCH A SCHEME MIGHT INVOLVE A DEPOSIT SLIP FOR 50000 BUT DEPOSITS OF ONLY 25000 WITH SOMEONE AT REVERE OR THE BANK COVERING UP THE DISCREPANCY REVERE HAD ABOUT 850 MERCHANT CUSTOMERS AND TRANSPORTED 100 MILLION OR MORE DAILY INDUSTRY EXPERTS SAY BANK FRAUD AND THEFT CHARGES ARE PENDING AGAINST THE FIRM'S OWNERS ROBERT AND SUSANNA SCARETTA WHO HAVE BEEN RELEASED ON BAIL IT SEEMS THE FBI HAS SOME VERY DEFINITE SUSPICIONS ALONG THESE LINES SAID RUSSELL YORK A SENIOR VICE PRESIDENT OF MAXSON YOUNG ASSOCIATES INC AN INTENATIONAL INSURANCE ADJUSTOR FIRM MAXSON YOUNG IS WORKING FOR THE LLOYDS OF LONDON UNDERWRITING SYNDICATE THAT HAD INSURED REVERE FOR 100 MILLION MR YORK ADDED THAT THE FBI'S INVESTIGATION INTO REVERE'S MERCHANT CUSTOMERS WILL BE SOMETHING OF INTEREST TO US BECAUSE EVIDENCE OF SUCH A SCHEME WOULD MEAN THAT INSURANCE MAY NOT COVER PART OR ANY OF THE 40 MILLION OF MISSING FUNDS IT COULD ALSO CHANGE THE SIZE OF THE BANK CLAIMS THE ATTORNEY FOR THE LLOYDS OF LONDON UNDERWRITERS SAID YESTERDAY THAT THE GROUP WAS RESERVING ALL RIGHTS OF DEFENSE ACCORDING TO MR YORK THIS WOULD INDICATE THAT THE LLOYDS GROUP HAS NOT YET DETERMINED WHETHER IT WILL PAY IF THE SCARETTAS ARE FOUND GUILTY OF WRONGDOING AT THE HEARING IN UNIONDALE NY MR STARK OF THE LAW FIRM OF MEYER SUOZZI ENGLISH & KLEIN SAID SEVEN BANKS CLAIMED THAT REVERE OWED THEM 87 MILLION BUT ONLY 47 MILLION WAS FOUND AT REVERE THE BANKS INCLUDE CITIBANK WHICH WAS SUPPOSED TO HAVE 225 MILLION AT REVERE AND MARINE MIDLAND BANKS WHICH IS CLAIMING 348 MILLION 9302180090 930218 MARKETING & MEDIA ADVERTISING CAPTIVE PAYING AUDIENCES GIVE ADS AT THE CINEMA MIXED REVIEWS BY KEVIN GOLDMAN WHEN MOVIEGOERS FILED INTO THE LION'S HEAD FIVE CINEMA IN NASHVILLE LAST MONTH TO WATCH THE TOM CRUISE COURTMARTIAL DRAMA A FEW GOOD MEN THEY GOT SOMETHING EXTRA AN ADVERTISEMENT FOR DIET COKE THE AD WASN'T NEW THE CROWD REACTION WAS THE PATRONS HARDLY FUSSED IN THEIR SEATS WHILE THE DIET COKE AD RAN REPORTS SCOTT JOHNSON THE THEATER'S PROJECTIONIST JUST AS IMPORTANT THEY DIDN'T BOO EITHER ADS IN MOVIE THEATERS WHICH HAVE ON OCCASION TURNED QUIET YUPPIES INTO SEETHING AND HISSING MOBS HAVE BECOME AS COMMONPLACE AS BUTTERED POPCORN ALMOST 40 OF MAJOR THEATER OUTLETS NOW RUN COMMERCIALS IN FACT THE NUMBER OF SOCALLED FIRSTRUN SCREENS RUNNING ADS ACTUALLY INCREASED LAST YEAR BY 17 TO 6800 OF THE NATION'S 17500 TOTAL SAYS TERRY LAUGHREN CHAIRMAN OF NEW YORKBASED SCREENVISION CINEMA NETWORK THE NATION'S LARGEST DISTRIBUTOR OF COMMERCIALS TO THEATERS IT SEEMS AS IF THE PUBLIC WHICH ONCE RESENTED FORKING OVER AS MUCH AS 750 A TICKET FOR THE PRIVILEGE OF WATCHING COMMERCIALS THEY COULD EASILY SEE ON TELEVISION HAS ROLLED OVER AND ACCEPTED THE SPOTS AS ANOTHER MILDLY IRRITATING FACT OF LIFE THAT RANKLES SOME CRITICS IT IS THE CLASSIC CASE OF DELIVERING A CAPTIVE AUDIENCE TO MARKETERS SAYS THE PRESIDENT OF WASHINGTONBASED CENTER FOR THE STUDY OF COMMERCIALISM MICHAEL JACOBSON WHO SEEMINGLY OPPOSES ADS ALMOST EVERYWHERE IT'S WORSE THAN PRODUCT PLACEMENT IN MOVIES IF I WANTED TO WATCH ADS I WOULD STAY HOME AND WATCH TV FOR FREE HE CHAFES MR JACOBSON SAYS HE URGES EVERYONE TO LOUDLY BOO WHEN ADS APPEAR ON MOVIE SCREENS HIS ADVICE ASIDE THE BUSINESS IS FINE AND BOOMING SAYS MR LAUGHREN WHOSE SCREENVISION HAS FOISTED MANY OF THESE INTRUSIONS UPON US HE DISPUTES THE NOTION THAT THE THEATER HOLDS A CAPTIVE AUDIENCE RATHER IT IS A COMMITTED AUDIENCE COMMITTED TO SEEING WHAT IS ON THE SCREEN COCACOLA WHICH HASN'T RUN AN AD IN MOVIE THEATERS FOR ITS COKE CLASSIC BRAND IN AT LEAST TWO YEARS IS COMING BACK TO THE BIG SCREEN THIS SPRING WITH SOME COMMERCIALS THAT WERE PRODUCED BY THE HOLLYWOOD TALENT SHOP CREATIVE ARTISTS AGENCY THE ADS ARE SPLASHY WITH HIGH PRODUCTION VALUE UNLIKE THE PREVIOUS COKE CLASSIC SPOTS WHICH SNIFFS ONE INDUSTRY EXECUTIVE WEREN'T CINEMATIC OTHER ADVERTISERS INCLUDE DR PEPPER THE US MARINES MTV PUMA SNEAKERS NINTENDO AND AUTO MAKERS GENERAL MOTORS CHRYSLER AND TOYOTA SOME SPONSORS INCLUDING DR PEPPER EASTMAN KODAK AND THE MARINES ACTUALLY PRODUCE SPECIAL VERSIONS EXPRESSLY FOR THE MOVIE THEATERS ADS THAT ARE BIGGER AND MORE CINEMATIC MR LAUGHREN SAYS THOSE THAT DON'T DO SO AT THEIR PERIL A SAVVY AUDIENCE CAN TUNE OUT A FAMILIAR AD IN A NANOSECOND INSTEAD OF BEING LULLED IN BY TOTALLY NEW COMMERCIALS ONLY TWO STUDIO GIANTS TIME WARNER'S WARNER BROS AND WALT DISNEY CO CLAIM TO PROHIBIT THEATERS FROM AIRING ADS BEFORE THEIR FILMS WARNER EMPLOYS SOCALLED SPOTTERS TO GO INTO THEATERS TO CHECK ON THE QUALITY OF A FILM PRINT AND MONITOR WHETHER ANY VERBOTEN ADS APPEARED WE'RE SATISFIED OUR POLICY IS BEING FOLLOWED SAYS A WARNER BROS SPOKESMAN IT IS ENTIRELY UNCLEAR HOWEVER JUST HOW OBEDIENTLY AND UNIVERSALLY THE RESTRICTIONS ARE FOLLOWED TORONTOBASED CINEPLEX ODEON FOR ONE SAYS IT RUNS ONLY COMING ATTRACTIONS AND AVOIDS ADS ON ITS 1063 SCREENS IN 237 THEATERS DOMESTICALLY WHENEVER A MOVIE FROM WARNER OR DISNEY IS SHOWN BUT COBB THEATERS A 300SCREEN CHAIN BASED IN BIRMINGHAM ALA SAYS IT ROUTINELY RUNS COMMERCIALS BEFORE A WARNER OR DISNEY FLICK MILT DALY COBB'S DIRECTOR OF OPERATIONS SAYS THE CHAIN'S CONTRACT WITH SCREENVISION SUPERSEDES ANY SELFSTYLED BAN IMPOSED BY THE TWO STUDIOS CERTIFIED MARKETING SERVICES A KINDERHOOK NY COMPANY HIRED BY SCREENVISION TO SAMPLE AUDIENCE REACTION INSISTS THAT 97 OF THEATERGOERS DON'T MIND WATCHING ONSCREEN ADS THAT'S A SOMEWHAT OPTIMISTIC CLAIM SEEING AS HOW THE FIRM DOESN'T DIRECTLY ASK CUSTOMERS FOR THEIR OPINIONS IT INSTEAD SENDS EMPLOYEES INTO 300 THEATERS ONCE A MONTH TO WATCH WHAT HAPPENS WHEN A SPOT AIRS A BOO OR HISS IS REGISTERED NATURALLY AS A COMPLAINT BUT NO REACTION AND HOW MANY PEOPLE ARE VOCALLY VIOLENT IN A THEATER IS CATEGORIZED AS A FAVORABLE RESPONSE AND TO BE SURE SOME AUDIENCES STILL RESIST THE AD ONSLAUGHT ADS ON THE SILVER SCREEN GET ROUNDLY RAZZED BY AUDIENCES IN MANHATTAN WHERE VIRTUALLY EVERYONE HAS AN OPINION WESTWOOD VILLAGE CALIF WHERE ALMOST EVERYONE IN EVERY THEATER IS CONNECTED TO THE MOVIE INDUSTRY OR WISHES THEY WERE AND IN SOME COLLEGE TOWNS SUCH AS ANN ARBOR MICH SCREENVISION SHUNS THESE LOCALES THE LOEWS THEATRES CHAIN WHICH HAS THEATERS IN MANHATTAN STOPPED RUNNING ADS ABOUT 18 MONTHS AGO BECAUSE OF COMPLAINTS FROM THE PUBLIC SAYS ROBERT SMERLING PRESIDENT PEOPLE CAN SEE ADS ON TELEVISION AT HOME WE WANT TO PRESENT A DIFFERENT KIND OF EXPERIENCE FROM A TV SCREEN WE CAME TO CONCLUSION THAT THIS WASN'T SOMETHING LOEWS DOES LOEWS THEATERS AREN'T TOTALLY ADFREE HOWEVER THE CHAIN SHOWS SLIDES PRIOR TO THE LIGHTS GOING DOWN THAT ADVERTISE LOCAL MERCHANTS MOSTLY RESTAURANTS THESE SLIDES SAYS MR SMERLING ARE LESS INTRUSIVE THAN FULL BLOWN COMMERCIALS CATHAY REVIEW CATHAY PACIFIC AIRWAYS HONG KONG PUT ITS ESTIMATED 35 MILLION INTERNATIONAL AD ACCOUNT INTO REVIEW LEO BURNETT CO'S HONG KONG OFFICE THE INCUMBENT DECLINED TO PARTICIPATE BOTH SIDES CALL THE SPLIT AMICABLE WITH BURNETT CONTINUING TO HANDLE THE ACCOUNT UNTIL A SUCCESSOR IS PICKED FOOTE CONE FOOTE CONE & BELDING COMMUNICATIONS REPORTED FOURTHQUARTER NET INCOME OF 65 MILLION OR 59 CENTS A SHARE COMPARED WITH A LOSS OF 292 MILLION A YEAR EARLIER NET INCOME FOR 1992 WAS 217 MILLION OR 2 A SHARE COMPARED WITH A LOSS OF 191 MILLION IN 1991 THE 1992 FIGURES REFLECT A CHARGE OF 36 MILLION RELATED TO A WRITEDOWN OF ITS FINANCIAL INTEREST IN THE BRITISH PUBLIC RELATIONS FIRM SHANDWICK PLC AND A ONETIME CREDIT OF 37 MILLION RELATED TO CHANGES IN ACCOUNTING FOR INCOME TAXES FORDCOSMO PACT FORD MOTOR CO HIRED HEARST CORP'S COSMOPOLITAN MAGAZINE TO PRODUCE A SALES TRAINING VIDEO ON HOW TO SELL CARS TO WOMEN COSMO INTERVIEWED HUNDREDS OF ITS READERS AND DETERMINED THAT THEIR TOP PRIORITY IS CONVENIENCE IN THE BUYING MAINTENANCE AND OPERATION OF A VEHICLE ACCOUNT APPAREL MAKER GITANO GROUP NEW YORK TAPPED MULLEN ADVERTISING WENHAM MASS FOR ITS ESTIMATED 8 MILLION ACCOUNT PREVIOUSLY HANDLED INHOUSE SPONSORSHIP CHRYSLER CORP HAS SIGNED ON TO SPONSOR THE 21ST CENTURY LIMITED A TRAIN THAT WILL TOUR THE COUNTRY AS A TRAVELING WORLD'S FAIR CELEBRATING THE CHANGE IN MILLENIUM JOHN B DAMOOSE CHRYSLER'S VICE PRESIDENT OF MARKETING SAYS THE TRAIN WILL PLAY A MAJOR ROLE IN CHRYSLER'S MARKETING EFFORTS IN THE NEXT FOUR OR FIVE YEARS ROSS E ROWLAND JR THE TRAIN'S PROMOTER SAYS HE HOPES TO SIGN SIX MORE CORPORATE SPONSORS THIS YEAR 9302180089 930218 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 FEDERAL HOME LOAN BANKS 242 MILLION OF NOTES DUE FEB 24 1995 PRICED AT PAR TO YIELD 4095 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FOUR BASIS POINTS ABOVE THE TREASURY'S TWOYEAR NOTE TEXACO CAPITAL INC 200 MILLION OF DEBENTURES DUE FEB 15 2033 PRICED AS 775 AT 99203 TO YIELD 7815 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP TEXACO CAPITAL IS A UNIT OF TEXACO INC ALABAMA POWER CO 175 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2003 WON BY DEALERS LED BY MORGAN STANLEY & CO THE ISSUE WILL BE REOFFERED AS 675 AT 98837 TO YIELD 6913 THE BONDS NONCALLABLE FIVE YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE MORGAN STANLEY'S BID RESULTED IN A 6953 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P ALABAMA POWER IS A UNIT OF SOUTHERN CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE FEB 25 2003 PRICED AT PAR TO YIELD 672 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 425 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP 139 MILLION 1992 SERIES B SPECIAL OBLIGATION REFUNDING BONDS HAVE BEEN PRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP YIELDS RANGE FROM 250 IN 1993 TO 610 IN 2017 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P GTE HAWAIIAN TELEPHONE CO 125 MILLION OF FIRST MORTGAGE BONDS DUE FEB 15 2005 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY FIRST BOSTON CORP THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE FIRST BOSTON'S BID RESULTED IN A 6894 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P GTE HAWAIIAN TELEPHONE IS A UNIT OF GTE CORP JONES INTERCABLE INC 100 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE MARCH 1 2008 PRICED AT PAR TO YIELD 105 THE ISSUE NONCALLABLE FOR SEVEN YEARS IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS ALABAMA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2023 WON BY SALOMON BROTHERS INC THE ISSUE WILL BE REOFFERED AS 775 AT 9850 TO YIELD 788 THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P ALABAMA POWER CO 50 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 1998 WON BY JP MORGAN SECURITIES INC THE ISSUE WILL BE REOFFERED AS 550 AT 98514 TO YIELD 585 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE JP MORGAN'S BID RESULTED IN A 5901 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P FLORIDA DEPARTMENT OF NATURAL RESOURCES 300 MILLION OF SERIES 1993A PRESERVATION 2000 REVENUE BONDS APPRARENTLY WON BY A LEHMAN BROTHERS GROUP LEHMAN BROTHERS IS BELIEVED TO HAVE WON THE OFFERING WITH A BID SETTING THE TRUE INTEREST COST AT 5508 YIELDS RANGE FROM 350 IN 1995 TO 584 IN 2013 BONDS DUE IN 1994 1995 AND 19972013 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE 1996 BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND ALSO CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MERCY HEALTH SYSTEM 237 MILLION OF SERIES 1993 HOSPITAL FACILITIES REVENUE REFUNDING BONDS PRICED BY A BEAR STEARNS & CO GROUP THE FIVEPART OFFERING INCLUDES CLERMONT COUNTY OHIO'S 4931 MILLION OF SERIES 1993A BONDS PRICED TO YIELD FROM 290 IN 1994 TO 596 IN 2015 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE OFFERING ALSO INCLUDES CLERMONT COUNTY'S 116 MILLION SERIES 1993B BONDS PRICED TO YIELD FROM 370 IN 1995 TO 600 IN 2019 THESE BONDS ARE INSURED BY AMBAC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ANOTHER PART OF THE ISSUE CONSISTS OF DAVIESS COUNTY KY'S 341 MILLION OF SERIES 1993A BONDS PRICED TO YIELD FROM 290 IN 1994 TO 596 IN 2015 INSURED BY MBIA THE BONDS CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ALSO INCLUDED ARE DAVIESS COUNTY'S 4 MILLION OF SERIES 1993B BONDS WHICH YIELD FROM 370 IN 1995 TO 595 IN 2013 THEY ARE INSURED BY AMBAC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE FINAL PART OF THE OFFERING CONSISTS OF KNOX COUNTY TENN'S 6459 MILLION OF SERIES 1993B BONDS WHICH YIELD FROM 370 IN 1995 TO 600 IN 2019 THEY ARE ALSO INSURED BY AMBAC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P INDIANAPOLIS INDIANA PUBLIC IMPROVEMENT BOND BANK 223 MILLION OF SERIES 1993A BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 400 IN 1996 TO 630 FOR ZEROCOUPON BONDS DUE IN 2013 THE ISSUE HAS BEEN RATED TRIPLEA BY MOODY'S AND DOUBLEAPLUS BY S&P NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY 175 MILLION OF MENTALHEALTH SERVICES FACILITIES IMPROVEMENT REVENUE BONDS REPRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP INCLUDED IN THE TWOPART OFFERING ARE 1508 MILLION 1993 SERIES A BONDS PRICED TO YIELD FROM 240 IN FEBRUARY 1994 TO 588 IN AUGUST 2022 2417 MILLION 1993 SERIES B BONDS PRICED TO YIELD FROM 240 IN FEBRUARY 1994 TO 520 IN BOTH FEBRUARY AND AUGUST 2003 ALL OF THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WITH SERIES A A NEW 2009 MATURITY WAS ADDED AND 2014 BONDS HAVE REPLACED THE 2013 SECURITIES THE 2009 550 BONDS ARE PRICED TO YIELD 565 AND THE 2014 570 BONDS ARE PRICED TO YIELD 580 GAINESVILLE FLA 164 MILLION OF 1993 SERIES A AND B UTILITIES SYSTEM BONDS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE OFFERING ARE 378 MILLION OF 1993 SERIES A REVENUE BONDS PRICED TO YIELD FROM 425 IN 1997 TO 540 IN 2006 THERE ARE ALSO 1262 MILLION OF 1993 SERIES B REVENUE REFUNDING BONDS PRICED TO YIELD FROM 405 IN 1996 TO 583 IN 2013 ALL OF THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P SALT LAKE CITY AND SALT LAKE COUNTY UTAH 73 MILLION ISSUE OF BONDS HAS BEEN PRICES BY A LEHMAN BROTHERS GROUP INCLUDED IN THE OFFERING ARE THE FOLLOWING 3926 MILLION SERIES 1993A AIRPORT REVENUE BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX YIELDS RANGE FROM 415 IN 1996 TO 620 IN 2022 AND 3418 MILLION SERIES 1993B AIRPORT REVENUE REFUNDING BONDS WHICH AREN'T SUBJECT TO THE AMT YIELDS FOR THIS PORTION OF THE ISSUE RANGE FROM 250 IN 1993 TO 605 IN 2018 ALL OF THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 450 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1484 IS BACKED BY 750 30YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 82 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 30 YEARS FEDERAL HOME LOAN MORTGAGE CORP SERIES 1482 REMIC SECURITIES TO 600 MILLION FROM 200 MILLION THE DEAL IS BEING OFFERED BY KIDDER PEABODY AND IS BACKED BY FREDDIE MAC GOLD 750 MORTGAGE SECURITIES THE SETTLEMENT DATE IS MARCH 30 1993 FIRST USA INC AN OFFERING OF FOUR MILLION COMMON SHARES WAS PRICED AT 2725 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GROSS SPREAD IS 122 SELLING CONCESSION IS 73 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 24 WATSON PHARMACEUTICALS INC AN INITIAL OFFERING OF 36 MILLION COMMON SHARES WAS PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO GROSS SPREAD IS 84 CENTS SELLING CONCESSION IS 50 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB PROFFITT'S INC AN OFFERING OF 225 MILLION COMMON SHARES WAS PRICED AT 2225 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP GROSS SPREAD IS 111 SELLING CONCESSION IS 67 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 24 PROFFITT'S ALSO GRANTED THE UNDERWRITERS AN OPTION TO BUY UP TO 337500 ADDITIONAL SHARES TO COVER OVERALLOTMENTS IES INDUSTRIES INC AN OFFERING OF TWO MILLION COMMON SHARES WAS PRICED AT 30 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GROSS SPREAD IS 97 CENTS SELLING CONCESSION IS 58 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 24 PROVINCE OF QUEBEC CANADIAN PROVINCE 14 BILLION CANADIAN OF 9625 GLOBAL BONDS DUE JAN 16 2023 REOFFERED AT 99582 VIA MERRILL LYNCH AND SCOTIAMCLEOD SEMIANNUAL COUPON THE BONDS YIELD 943 AT THE REOFFER PRICE A SPREAD OF 90 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT BOND DUE 2021 FEES 050 KINGDOM OF DENMARK SOVEREIGN 250 MILLION CANADIAN OF 750 EUROBONDS DUE MARCH 10 1998 PRICED AT 100936 VIA MERRILL LYNCH INTERNATIONAL BONDS REOFFERED AT 99311 TO YIELD 767 A SPREAD OF ABOUT 44 BASIS POINTS OVER THE COMPARABLE GOVERNMENT OF CANADA BOND FEES 1875 BANK VOOR NEDERLANDSCHE GEMEENTEN AGENCY 15 BILLION DUTCH GUILDERS OF 7 EUROBONDS DUE MARCH 10 2003 PRICED AT 10130 VIA ABN AMRO BONDS REOFFERED AT 10055 TO YIELD 10 BASIS POINTS ABOVE THE DUTCH STATE LOAN FEES 1 EUROPEAN INVESTMENT BANK AGENCY 500 MILLION ECU OF 775 EUROBONDS DUE MARCH 10 2000 PRICED AT 99905 VIA BARCLAYS DE ZOETE WEDD BONDS REOFFERED AT 9841 TO YIELD 8056 FEES 1875 ANDALUCIA SPANISH PROVINCE 400 MILLION DEUTSCHE MARKS OF 725 EUROBONDS DUE MARCH 12 1998 PRICED 10220 VIA DRESDNER BANK AG BONDS REOFFERED AT PAR TO YIELD 725 A MARGIN OF ABOUT 70 BASIS POINTS ABOVE THE GERMAN GOVERNMENT'S NOTE FEES 250 POINTS HAMBURGISCHE LANDESBANKGIROZENTRALE GERMANY 100 MILLION MARKS OF REVERSE FLOATING RATE EURONOTES DUE MARCH 17 2003 PRICED AT PAR VIA TRINKAUS UND BURKHARDT NOTES PAY 5 IN THE FIRST YEAR AND 13 LESS THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR THE FINAL NINE YEARS FEES 015 WORLD BANK AGENCY 200 BILLION YEN OF GLOBAL BONDS DUE MARCH 20 2003 TO BE PRICED THURSDAY VIA IBJ INTERNATIONAL MORGAN STANLEY INTERNATIONAL AND NIKKO SECURITIES THE BONDS WILL BE REOFFERED TO INVESTORS TO GIVE A YIELD OF 25 TO 27 BASIS POINTS OVER THE COMPARABLE JAPANESE GOVERNMENT BOND NO 145 SEMIANNUAL COUPON ARGYLL GROUP PLC UK 150 MILLION OF 0125 EUROBONDS DUE MARCH 10 2000 PRICED AT 100725 VIA CREDIT SUISSE FIRST BOSTON LTD BONDS OFFERED AT 9925 TO YIELD 827 A MARGIN OF 80 BASIS POINTS ABOVE THE COMPARABLE FEES 1875 POINTS TOA CORP JAPAN 150 MILLION OF 2125 EUROBONDS DUE MARCH 11 1997 WITH EQUITY WARRANTS PRICED AT PAR VIA NIKKO EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM MARCH 23 1993 TO FEB 26 1997 TO BUY SHARES AT AN EXPECTED 250 PREMIUM OVER THE CLOSING SHARE PRICE ON FEB 23 WHEN FINAL TERMS WILL BE FIXED ISSUE GUARANTEED BY FUJI BANK LTD FEES 2125 GRUMA SA DE CV MEXICO 125 MILLION OF EUROBONDS DUE MARCH 9 1998 TO BE PRICED THURSDAY VIA LEHMAN BROTHERS INTERNATIONAL PRICING TO OFFER YIELD BETWEEN 430 TO 455 BASIS POINTS ABOVE THE COMPARABLE TREASURY FEES 1 PETROBRAS BRASILEIRO SA BRAZIL 110 MILLION OF 8875 EUROBONDS DUE MARCH 10 1995 AT A FIXED OFFER PRICE OF 99798 VIA SALOMON BROTHERS INTERNATIONAL SEMIANNUAL COUPON THE BONDS YIELD 899 AT THE REOFFER A PICKUP OF ABOUT 490 POINTS ABOVE THE TWOYEAR TREASURY NOTE FEES 1 JAPAN FINANCE CORP FOR SMALL BUSINESS JAPAN 350 MILLION SWISS FRANCS OF 5 GUARANTEED PUBLIC BONDS DUE MARCH 22 2000 PRICED AT 10250 VIA CREDIT SUISSE FEES TOTAL 2125 POINTS 9302180088 930218 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9302180087 930218 CHEMICAL UNIT ENDS PACT TO PURCHASE TEXAS BANK NEW YORK CHEMICAL BANKING CORP'S TEXAS COMMERCE BANCSHARES UNIT SAID IT WON'T ACQUIRE THE EL PASO TEXAS BANK OF DEFUNCT FIRST CITY BANCORP DUE TO ANTITRUST CONCERNS OF THE JUSTICE DEPARTMENT THIS IS THE SECOND BANK IN TEXAS COMMERCE BANCSHARES' PURCHASE OF MOST OF FIRST CITY THAT RAISED ANTITRUST OBJECTIONS LAST WEEK TEXAS COMMERCE SAID IT WOULD SELL MUCH OF FIRST CITY NATIONAL BANK OF MIDLAND BECAUSE IT WOULD CONTROL 35 OF THE MARKET'S DEPOSITS ABOVE JUSTICE DEPARTMENT THRESHOLDS SUNWEST BANK OF EL PASO A UNIT OF BOATMEN'S BANCSHARES INC OF ST LOUIS WILL PURCHASE THE EL PASO BANK WHICH HAS 300 MILLION IN DEPOSITS FOR THE SAME 14 MILLION PREMIUM CHEMICAL WOULD HAVE PAID FOR THE BANK LAST MONTH THE FEDERAL DEPOSIT INSURANCE CORP ANNOUNCED THAT TEXAS COMMERCE WOULD PAY 347 MILLION TO ACQUIRE BRANCHES OF FAILED FIRST CITY BANCORP WITH COMBINED ASSETS OF 664 BILLION IN HOUSTON DALLAS BEAUMONT EL PASO AND MIDLAND THE 15 OTHER FIRST CITY BRANCHES WERE PURCHASED BY 11 OTHER BANKS FIRST CITY'S 20 BRANCHES HAD A TOTAL OF 912 BILLION IN ASSETS 9302180086 930218 VANGUARD GROUP FILES SUIT IN BID TO HALT NEWSLETTER VALLEY FORGE PA VANGUARD GROUP TOOK THE UNUSUAL STEP OF SUING A SMALL PUBLISHING COMPANY THAT PUTS OUT A MONTHLY NEWSLETTER DEVOTED TO THE MUTUAL FUND GROUP THE 100 BILLIONASSETS FUND GROUP IS SEEKING TO STOP THE PUBLISHER OF THE VANGUARD ADVISER FROM USING VANGUARD IN ITS NAME THE SUIT WAS FILED LAST WEEK IN THE US DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA IT'S A FRIVOLOUS LAWSUIT THAT'S BEING BROUGHT TO PUT US OUT OF BUSINESS SAYS DANIEL WIENER THE NEWSLETTER'S 36YEAROLD EDITOR HE SAYS VANGUARD BROUGHT THE LAWSUIT BECAUSE IT IS UNHAPPY WITH ARTICLES IN THE VANGUARD ADVISER WHICH HAS A CIRCULATION OF 15000 MR WIENER SAYS VANGUARD WAS ALSO UPSET BECAUSE FORBES MAGAZINE PUBLISHED HIS ESTIMATE THAT VANGUARD CHAIRMAN JOHN BOGLE EARNED 26 MILLION IN SALARY AND RETIREMENT BENEFITS IN 1991 NOT SO SAYS MR BOGLE WE JUST WANT TO STOP THIS MAN FROM STEALING OUR NAME BY CALLING HIS THING THE VANGUARD ADVISER HE'S CREATING GREAT CONFUSION AND WHAT ABOUT THE ESTIMATE OF MR BOGLE'S SALARY THE NUMBER IS OFF BY 400 TO 500 SAYS VANGUARD'S 63YEAROLD CHAIRMAN IT'S JUST PLAIN WRONG 9302180085 930218 ECONOMY CASEY WHO HEADED THRIFT CLEANUP ANNOUNCES HE'LL STEP DOWN IN APRIL BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ALBERT CASEY WHO HAS HEADED THE GOVERNMENT'S CLEANUP OF THE SAVINGSANDLOAN DEBACLE SINCE OCTOBER 1991 DISCLOSED THAT HE WILL RESIGN APRIL 1 MR CASEY CHIEF EXECUTIVE OFFICER OF THE RESOLUTION TRUST CORP HAS BEEN THE SUBJECT OF A CONTROVERSY OVER HOW THE RTC HAS CONDUCTED THE TAKEOVER OF FAILED THRIFT INSTITUTIONS AND DISPOSED OF THEIR ASSETS HE SAID IN AN INTERVIEW THAT HE SUBMITTED HIS RESIGNATION BECAUSE I FEEL THAT THEY WANT THEIR OWN PERSON IN THERE IN A LETTER TO RTC EMPLOYEES YESTERDAY MR CASEY DISCLOSED THAT HE HAD INFORMED TREASURY SECRETARY LLOYD BENTSEN OF THE RESIGNATION MR BENTSEN IS CHAIRMAN OF THE BOARD THAT OVERSEES THE RTC THE 72YEAROLD MR CASEY A FORMER AIRLINE EXECUTIVE AND POSTMASTER GENERAL WAS NAMED TO THE RTC POST BY FORMER PRESIDENT BUSH HE SAID HE HAD OFFERED TO STAY AT THE RTC UNTIL THE END OF JULY TO HELP HAMMER OUT A FUNDING PLAN FOR THE AGENCY OR UNTIL THE END OF SEPTEMBER TO WIND UP MOST OF THE PROCESS FOR RESOLVING FAILED S&LS UNDER THE RTC'S WING THE AGENCY'S AUTHORITY TO TAKE OVER ANY NEWLY FAILED THRIFTS EXPIRES ON SEPT 30 MR CASEY SAID THAT CLINTON ADMINISTRATION OFFICIALS DIDN'T RESPOND TO HIS OFFERS I KEPT OFFERING TO FOLLOW MY OWN PROGRAM HE SAID BUT I RECEIVED NO ENCOURAGEMENT THAT THAT'S WHAT THEY WANTED TO DO BEFORE NOTIFYING MR BENTSEN OF HIS PLAN TO RESIGN MR CASEY HAD SUBMITTED A RESIGNATION LETTER TO THENPRESIDENT BUSH SHORTLY BEFORE MR CLINTON'S JAN 20 INAUGURATION TO TAKE EFFECT WHEN A SUCCESSOR IS NAMED BY THE PRESIDENT CONFIRMED BY THE SENATE AND SWORN IN UNDER THE RTC'S GOVERNING LAW NO ACTING RTC CHIEF CAN BE NAMED A SENATECONFIRMED DESIGNEE MUST BE ON THE JOB FOR THE AGENCY TO FUNCTION THE RTC SAID MR CASEY MET WITH CLINTON ADMINISTRATION TREASURY OFFICIALS RECENTLY TRYING UNSUCCESSFULLY TO FIND OUT THEIR GAME PLAN FOR THE S&L WRAPUP AND WHEN THEY WANTED HIM TO LEAVE AN RTC SPOKESMAN SAID MR CASEY HAS SAID THE RTC WILL NEED ANOTHER 25 BILLION IN FUNDS TO FINISH MOST OF THE TAKEOVER OF FAILED S&LS AND THE REST OF THE CLEANUP COULD THEN BE ACCOMPLISHED BY THE FEDERAL DEPOSIT INSURANCE CORP USING ITS THRIFT INSURANCE PROGRAM HE ADVOCATES FOLDING THE RTC INTO THE FDIC AFTER SEPT 30 WHILE THE BUSH ADMINISTRATION ENDORSED MR CASEY'S FUNDING ESTIMATE OTHERS INCLUDING THE CONGRESSIONAL BUDGET OFFICE HAVE HIGHER PROJECTIONS AND SOME DISAGREE WITH HIS JUDGMENT THAT THE REST OF THE S&L CLEANUP ALREADY COSTING SOME 150 BILLION INCLUDING PRERTC SPENDING WILL BE AS SIMPLE AS MR CASEY HAS SAID AT A RECENT MEETING OF THE BENTSENCHAIRED OVERSIGHT BOARD FOR EXAMPLE BOARD PRESIDENT PETER MONROE LAID OUT WHAT HE DESCRIBED AS SOME RATHER FORMIDABLE TASKS STILL FACING THE RTC MR CASEY SAID HIS DECISION TO LEAVE WASN'T AFFECTED BY CRITICISM OF THE RTC FOR USING HIGHVOLUME BULK SALES METHODS THAT ENABLE BIG INVESTORS TO CORRAL MOST OF THE FAILED THRIFT ASSETDISPOSITION BUSINESS OR FOR ALLEGED SERIOUS INEFFICIENCIES OVER THE WEEKEND MR BENTSEN SENT MR CASEY A LETTER PARTLY CONCERNING RTC FEES PAID TO ACCOUNTANT PRICE WATERHOUSE FOR REVIEWING THE ASSETS OF HOMEFED BANK SAN DIEGO A FAILED S&L THE TREASURY SECRETARY SAID IT SEEMED THAT MUCH OF THE 100 MILLION IN FEES INCLUDING DOCUMENT COPYING CHARGES PAID TO THE ACCOUNTANT AND OTHER CONTRACTORS REPRESENT EXCESSIVE COSTS AND EXCESSIVE MARKUPS HE URGED A THOROUGH PROBE OF THE CONTRACTS AND STEPS TO RECOVER EXCESSIVE PAYMENTS YESTERDAY THE RTC SAID IT HAD NEGOTIATED REDUCED FEES WITH PRICE WATERHOUSE FOR THE SERVICES IN THE HOMEFED CASE AND THAT IT WILL SAVE THE RTC 4 MILLION NEW NEGOTIATIONS HAD BEGUN LAST MONTH BUT WERE ACCELERATED IN RECENT DAYS AS A RESULT OF CONCERN EXPRESSED BY MEMBERS OF CONGRESS MR CASEY SAID NEW PROCEDURES FOR DOCUMENT HANDLING COPYING AND PROTECTION THAT HAD BEEN SPECIFIED BY THE JUSTICE DEPARTMENT LED TO MAJOR COST INCREASES FROM EXPANDED WORK BY PRICE WATERHOUSE THE RTC SAID IN A SEPARATE STATEMENT PRICE WATERHOUSE SAID THE COMPLEXITY OF ITS ASSIGNMENT WAS INCREASED BY A JUSTICE DEPARTMENT SUBPOENA OF HOMEFED FILES PART OF AN INVESTIGATION OF POSSIBLE WRONGDOING BY THE THRIFT'S EMPLOYEES THE ACCOUNTANT SAID IT VOLUNTARILY RENEGOTIATED THE RTC CONTRACT AND AGREED TO GIVE A 20 DISCOUNT ON SERVICES BEYOND THOSE ORIGINALLY ENVISIONED FOR THE MASSIVE REVIEW PRICE WATERHOUSE ALSO SAID THAT ITS CHARGES TO COPY HOMEFED DOCUMENTS AVERAGED BETWEEN FIVE AND EIGHT CENTS A COPY NOT THE 67 CENTS A PAGE ASSERTED BY THE RTC INSPECTOR GENERAL 9302180084 930218 REVIEW & OUTLOOK EDITORIAL HOMES FOR THE NONRICH THE CLINTON ADMINISTRATION ANNOUNCED LAST NIGHT THAT AS PART OF ITS REBUILD AMERICA PROPOSAL IT WOULD POUR 96 BILLION OVER FOUR YEARS INTO HOUSING AND COMMUNITY DEVELOPMENT IT'S HARD TO SEE HOW THIS MONEY IS GOING TO AVOID DOING MUCH ELSE THAN RESTART THE SLUGGISH WASTEBELCHING ENGINE OF PUBLIC BUILDING PROGRAMS WE STILL HOPE THAT NEW HUD SECRETARY HENRY CISNEROS WILL TRY A DIFFERENT TWIST IN ADDITION TO PUSHING FOR EMPOWERMENT WHOSE MOST VOCAL ADVOCATE IN THIS ADMINISTRATION SEEMS TO BE AGRICULTURE SECRETARY MIKE ESPY VIA VOUCHERS AND ULTIMATELY HOMEOWNERSHIP AND FOR ELIMINATION OF RENTCONTROL LAWS THAT CURTAIL SUPPLY HE OUGHT TO TAKE UP THE CAUSE OF MANUFACTURED OR MODULAR HOUSING THE MARKETPLACE HAS SHOWN THIS IS A WAY TO GET MORE BANG FOR THE BUCK AND MORE SHELTER FOR POORER AMERICANS THE CENSUS BUREAU FINDS THE PERCENTAGE OF AMERICANS LIVING IN MOBILE HOMES AN INCREASINGLY MISLEADING TERM ROSE TO 67 IN 1990 FROM 29 IN 1970 THIS HOUSING IS USUALLY QUITE STATIONARY AND IN MANY CASES IS FULLY A MATCH FOR TRADITIONAL STICKS AND BRICKS CONSTRUCTION ONSITE BUT IT'S CHEAPER IN CALIFORNIA MANUFACTURED SHELTER COSTS 3648 A SQUARE FOOT VS 4655 FOR THE AVERAGE TRACT HOME THE REASON IS EFFICIENCY BUILDERS CAN USE THE SAME QUALITY OF MATERIAL AND STILL CUT COSTS BECAUSE THEY CAN CONTROL INVENTORY AND CURB THEFT OF FIXTURES AND SUCH WHILE ASSEMBLINGONORDER IN LESS TIME AND WITHOUT A CONSTRUCTION LOAN HANGING OVER THEM THE ONLY REAL PROBLEM IS A LINGERING IMAGE OF MOBILEHOME TRAILERS THAT LOOK JUNKY TO MORE COMFORTABLY SITUATED FOLKS AND ARE PRONE TO DESTRUCTION IN CALAMITOUS WEATHER SUCH ACCOMMODATIONS REMAIN A GODSEND FOR MANY FOLKS WHO MUST LIVE ON PALTRY INCOMES BUT THEY ARE NOT REPRESENTATIVE OF WHAT IS MEANT TODAY BY MANUFACTURED OR MODULAR HOUSING THOSE TWO TERMS REFER TO MUCH THE SAME KIND OF STRUCTURE MANUFACTURED IS SUBJECT TO BUILDINGCODE REGULATION BY HUD MODULAR BY THE LOCAL JURISDICTION WHERE IT IS PLACED DESPITE DESIGN ADVANCES THE STIGMA REMAINS A USEFUL ONE FOR NEIGHBORS OR TRADITIONAL COMPETITORS WHO WISH TO BLOCK THIS TYPE OF HOME MEANWHILE THE PROFESSIONAL ADVOCATES FOR LOWCOST HOUSING HAVE BEEN RATHER SILENT ON THIS OPTION THE TOPIC NEVER CAME UP AT SECRETARY CISNEROS'S CONFIRMATION HEARING LOCAL AND STATE BUREAUCRATS ARE AN OBSTACLE THE TRADES FEAR NONUNION COMPETITION THE MOST POWERFUL BUSINESS LOBBIES INCLUDING THE NATIONAL ASSOCIATION OF HOME BUILDERS HAVE THEIR OWN REASONS FOR STANDING IN THE WAY AS CREATIVE POLITICIANS SUCH AS REP NEWT GINGRICH ARE FOND OF SAYING TAXES NEEDN'T BE RAISED TO FUND BETTER GOVERNMENT IF ONLY ADVANCES IN TECHNOLOGY AND MANAGEMENT PRACTICES WILL BE ACCEPTED BY THE PUBLIC SECTOR MR CISNEROS SHOULD STAND IN FRONT OF THE MODULAR HOMES THAT ALREADY HAVE REPOPULATED A PARTICULARLY ROUGH AREA OF THE SOUTH BRONX OR THE MANUFACTURED HOUSING THAT HAS COME TO OAKLAND CALIFORNIA AND SAY THAT THIS TOO CAN BE A VITAL PART OF PUTTING AN AFFORDABLE ROOF OVER PEOPLE'S HEADS 9302180083 930218 MOVIES MODEST MOVIES ARE BIGTIME OSCAR NOMINEES BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD CALL IT THE YEAR OF THE LITTLE FILM YESTERDAY THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES BESTOWED AN UNUSUALLY HEAVY DOSE OF ACADEMY AWARD NOMINATIONS ON MANY SMALL SPECIALIZED MOVIES AND SOME ARE NOW VIRTUALLY GUARANTEED BIG BOXOFFICE REWARDS AS A RESULT THE WINNERS WITH THE LARGEST POTENTIAL APPEAR TO BE HOWARDS END AND THE CRYING GAME TWO LOWBUDGET INDEPENDENTLY FINANCED MOVIES WHOSE BOXOFFICE GROSSES NOW WILL LIKELY DOUBLE INDUSTRY EXECUTIVES SAY IF EITHER GOES ON TO WIN MAJOR AWARDS AT CEREMONIES MARCH 29 THE TAKE COULD BE EVEN HIGHER HOWARDS END PRODUCED BY MERCHANT IVORY PRODUCTIONS AND DISTRIBUTED BY SONY CORP'S SONY PICTURES CLASSICS UNIT CLAIMED NINE NOMINATIONS A MAJOR STUDIO MOVIE WARNER BROS' CLINT EASTWOOD WESTERN UNFORGIVEN ALSO GOT NINE NOMINATIONS MR EASTWOOD HIMSELF WAS NOMINATED AS BEST ACTOR AND BEST DIRECTOR BOTH HOWARDS END AND UNFORGIVEN WERE NOMINATED FOR BEST PICTURE ALONG WITH SCENT OF A WOMAN A FEW GOOD MEN AND THE CRYING GAME ACADEMY AWARD NOMINATIONS AND EVENTUAL AWARDS ARE AS GOOD AS MONEY IN THE BANK TO THE MOVIE COMPANIES THAT RELEASE THEM ENTERTAINMENT DATA INC A LOS ANGELES RESEARCHER INDICATED IN ONE SURVEY THAT THE WINNER OF THE BEST PICTURE AWARD CAN COUNT ON AN ADDITIONAL 30 MILLION OR SO IN GROSS TICKET SALES MOVIEGOERS HAVE A LOT OF CHOICES AT THEATERS THESE DAYS AND THE SENTIMENTS OF THE ACADEMY ALONG WITH THE INCREASED PUBLICITY AFFECT THEIR DECISIONS ANALYSTS SAY THE STRONG SHOWING BY INDEPENDENTLY MADE FILMS INCLUDES MAJORCATEGORY NOMINATIONS FOR PASSION FISH INDOCHINE ENCHANTED APRIL DAMAGE AND THE PLAYER THOSE MOVIES WERE ALL RELATIVELY INEXPENSIVE TO MAKE AND MOST SO FAR HAVE POSTED RELATIVELY MODEST BOXOFFICE RETURNS A SLIGHT UPTICK IN SALES ON LOWCOST MOVIES CAN MAKE A GIANT DIFFERENCE ON THE BOTTOM LINE LED BY HOWARDS END AND THE CRYING GAME MANY OF THE FILMS WILL WIDEN THEIR RELEASE SIGNIFICANTLY THIS WEEKEND TO CASH IN ON THE NOMINATIONS THE CRYING GAME A ROMANTIC THRILLER WITH POLITICAL AND SEXUAL INTRIGUE WILL BE EXPANDED TO AROUND 750 OR 800 SCREENS FRIDAY FROM 217 SCREENS TODAY THE MOVIE HOWEVER HINGES ON A SURPRISING PLOT TWIST THAT BEGAN TO SLIP OUT IN THE MEDIA YESTERDAY FOLLOWING THE ANNOUNCEMENT OF THE NOMINATIONS SOME WORRY THAT SUCH REVELATIONS COULD LIMIT THE FILM'S BOXOFFICE POTENTIAL GERRY RICH SENIOR VICE PRESIDENT OF MARKETING AT MIRAMAX FILMS CORP SAYS THE DISTRIBUTOR ISN'T CONCERNED ABOUT BEING HURT FINANCIALLY BUT ABOUT ROBBING THE AUDIENCE OF THE VIEWING PLEASURE OF SEEING THIS FILM HOWARDS END BASED ON AN EM FORSTER NOVEL ABOUT TWO EMANCIPATED SISTERS IN EARLY 20TH CENTURY ENGLAND HAS BEEN PLAYING IN LIMITED RELEASE SINCE LAST MARCH ITS SCREENS WILL GROW TO AROUND 350 TOMORROW FROM THE CURRENT 78 AUDIENCES ARE IN A STATE OF STARVATION SAYS NEIL JORDAN THE WRITER AND DIRECTOR OF THE CRYING GAME WHO SUGGESTED THAT MOVIEGOERS WANT THE MORE PERSONAL OUTOFTHEORDINARY FILMS OFFERED UP BY THE INDEPENDENTS THEY'VE BEEN UNDERESTIMATED CONSISTENTLY OVER THE LAST SIX OR SEVEN YEARS MR JORDAN WHO RECEIVED NOMINATIONS AS BEST DIRECTOR AND FOR BEST SCREENPLAY WRITTEN DIRECTLY FOR THE SCREEN SAYS HE DOESN'T THINK HIS MOVIE WOULD HAVE SURVIVED HAD IT BEEN MADE AT A MAJOR STUDIO THERE WOULD HAVE BEEN ALL KINDS OF EXECUTIVE INTERFERENCE HE SAYS WHICH IS WHY MANY FILMS ARE SO BLAND THESE DAYS PEOPLE TRY TO SECONDGUESS ALL THE TIME WHILE MAJORSTUDIO RELEASES CERTAINLY WERE IN EVIDENCE AT THE MOTION PICTURE ACADEMY WHEN NOMINATIONS WERE DISCLOSED EARLY YESTERDAY THE GASPS CAME FROM THE MANY SELECTIONS FROM FILMS PRODUCED OUTSIDE OF THE STUDIO SYSTEM A THIRD OF THE NOMINATIONS IN THE BEST PICTURE ACTOR AND ACTRESS CATEGORY WERE AWARDED TO SUCH FILMS A YEAR AGO THERE WAS ONLY ONE SUCH NOMINATION LAURA DERN AS BEST ACTRESS FOR RAMBLING ROSE AMONG THE MAJOR STUDIOS THAT WILL BENEFIT FROM THE NOMINATIONS WARNER BROS A UNIT OF TIME WARNER INC SAID IT WILL RERELEASE UNFORGIVEN ON 800 SCREENS ACROSS THE COUNTRY THIS WEEKEND THE MOVIE WHICH ALSO GARNERED A BEST SUPPORTING ACTOR NOMINATION FOR GENE HACKMAN OPENED LAST AUGUST AND PLAYED STRONGLY THROUGH THE FALL BUT WARNER BROUGHT THE MOVIE BACK IN A NUMBER OF THEATERS IN LOS ANGELES AT THE END OF THE YEAR SO THAT ACADEMY MEMBERS WOULD REMEMBER IT SO FAR IT HAS GROSSED AN IMPRESSIVE 753 MILLION BARRY REARDON PRESIDENT OF DISTRIBUTION AT THE STUDIO SAYS HE WOULD BE ECSTATIC IF THE PICTURE TOOK IN ANOTHER 25 MILLION THIS WEEKEND IN THE AFTERGLOW OF THE NOMINATIONS UNIVERSAL PICTURES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC SAYS THE NATIONAL RELEASE OF SCENT OF A WOMAN PROBABLY WON'T EXPAND FURTHER AS A RESULT OF ITS FOUR NOMINATIONS IN ADDITION TO THE BEST PICTURE MENTION IT WAS ALSO CITED FOR AL PACINO AS BEST ACTOR AND FOR ITS DIRECTOR MARTIN BREST UNIVERSAL SUGGESTED THAT THE RUN OF LORENZO'S OIL A DRAMA THAT SO FAR HAS STIRRED LITTLE BOXOFFICE INTEREST WILL LIKELY BE SCREENED IN MORE CITIES ON THE STRENGTH OF ITS BEST ACTRESS NOMINATION FOR SUSAN SARANDON WHERE THE NOMINATIONS WILL HELP A LOT IS OUTSIDE THE US SAYS TOM POLLOCK CHAIRMAN OF MCA'S MOTION PICTURE GROUP BOTH LORENZO'S OIL AND SCENT OF A WOMAN WILL OPEN LATER THIS MONTH OVERSEAS WITH CAMPAIGNS BOASTING ABOUT THE NODS THERE IS NO QUESTION THAT WE MADE THE DECISION TO OPEN THESE MOVIES OVERSEAS THE WEEK AFTER THE ACADEMY NOMINATIONS HOPING THAT WE WOULD GET NOMINATIONS HARVEY WEINSTEIN COCHAIRMAN OF MIRAMAX FILMS CORP SAYS HE IS HOPING THE NOMINATIONS WILL DOUBLE THE GROSS OF THE CRYING GAME TO A TOTAL OF ABOUT 30 MILLION MIRAMAX ALSO RELEASED PASSION FISH WHICH WON TWO NOMINATIONS INCLUDING A BEST ACTRESS NOD FOR MARY MCDONNELL AND ENCHANTED APRIL WHICH ALSO GOT TWO NOMINATIONS ONE A BEST SUPPORTING ACTRESS NOD FOR JOAN PLOWRIGHT MR WEINSTEIN ESTIMATES THE NOMINATIONS COULD ADD 5 MILLION TO THE GROSS OF PASSION FISH WHICH NOW HAS TAKEN IN JUST 900000 ENCHANTED APRIL WITH A TODATE TAKE OF 127 MILLION COULD INCREASE BY AT LEAST ANOTHER 1 MILLION OR SO HE ALSO SAYS IT COULD MEAN SALES OF AN ADDITIONAL 25000 VIDEOCASSETTES TO RENTAL STORES TOM BERNARD COPRESIDENT OF SONY PICTURES CLASSICS SAYS HOWARDS END IS FOLLOWING THE SAME TRACK THAT THE LAST EMPEROR A BEST PICTURE WINNER MADE IN 1987 TO DATE HOWARDS END HAS TAKEN IN 18 MILLION THE LAST EMPEROR HAD TAKEN IN 21 MILLION WHEN NOMINATIONS WERE ANNOUNCED THAT YEAR IT WENT ON TO GROSS 43 MILLION AFTER WINNING THE BEST PICTURE OSCAR MR BERNARD SAYS SONY CLASSICS ALWAYS FELT THAT THIS WAS A QUALITY FILM THAT WOULD TAKE A LOT OF NURTURING FOR IT TO GET TO THE AUDIENCE HE SAYS THE COMPANY ADOPTED AN UNTRADITIONAL PUBLICITY EFFORT BY BRINGING IN STARS ANTHONY HOPKINS AND EMMA THOMPSON WHO WAS NOMINATED FOR BEST ACTRESS AT DIFFERENT TIMES THROUGHOUT THE RUN NOT JUST BEFORE ITS OPENING THE BUZZ SLOWLY CREPT ACROSS THE COUNTRY AND THE MOVIE STARTED SETTING MOVIE HOUSE RECORDS WE WANTED PEOPLE TO SAY GEE IT'S FINALLY HERE I HEAR THIS IS A GOOD MOVIE' MR BERNARD SAYS HE SAYS INDOCHINE WHICH THE COMPANY IS ALSO DISTRIBUTING SHOULD END UP BEING A HUGE ARTHOUSE HIT WITH A GROSS OF 5 MILLION TO 7 MILLION ON THE BASIS OF THE BEST ACTRESS NOMINATION FOR CATHERINE DENEUVE THE BESTACTOR NOD FOR ROBERT DOWNEY JR IN TRISTAR PICTURES' CHAPLIN ISN'T LIKELY TO RAISE THE BOXOFFICE FORTUNES OF THAT MOVIE MUCH INDUSTRY EXECUTIVES SUGGEST TRISTAR A SONY UNIT RELEASED THE MOVIE NATIONALLY JUST AFTER CHRISTMAS AND ALTHOUGH MANY CRITICS RAVED ABOUT MR DOWNEY'S PERFORMANCE AUDIENCES DIDN'T BITE IT HAS GROSSED JUST 88 MILLION MALCOLM X GOT JUST TWO NOMINATIONS INCLUDING ONE FOR DENZEL WASHINGTON AS BEST ACTOR BUT THAT MOVIE HAS PLAYED ITSELF OUT TOO AGAIN THIS YEAR THE ACADEMY PASSED ON THE MOVIE'S DIRECTOR SPIKE LEE WALT DISNEY CO'S ANIMATED ALADDIN SOON TO BE THE HIGHEST GROSSING MOVIE IT HAS EVER RELEASED RECEIVED FIVE NODS INCLUDING TWO FOR MUSIC BUT DIDN'T REPEAT THE BEST PICTURE NOMINATION OF LAST YEAR'S BEAUTY AND THE BEAST A FEW GOOD MEN COLUMBIA PICTURES' MILITARY COURTROOM DRAMA ALSO TAPERED OFF RECENTLY AT THE BOX OFFICE SO FAR CHARTING A GROSS OF 124 MILLION INSIDERS AT PARENT SONY PICTURES SAID THERE WAS SOME DISAPPOINTMENT THAT IT DIDN'T WIN KUDOS FOR ITS DIRECTOR ROB REINER MAIN STAR TOM CRUISE OR SCREENWRITER AARON SORKIN IT GOT BEST PICTURE WHICH IS A BIG NOMINATION SAYS PETER GUBER CHAIRMAN AND CHIEF EXECUTIVE AT SONY PICTURES ENTERTAINMENT AND OVERALL IT WAS A GREAT DAY FOR THE COMPANY HE SAID NOTING THAT ITS DISTRIBUTION COMPANIES TOGETHER RECEIVED 30 NOMINATIONS MORE THAN ANY OTHER MOVIE COMPANY WARNER EXECUTIVES THOUGH WERE QUICK TO COUNTER THAT IT RANKED AS THE NO 1 DISTRIBUTOR HAVING GAINED 18 NOMINATIONS RELEASING FILMS THROUGH A SINGLE DISTRIBUTION APPARATUS IF THIS DOESN'T PROVE THAT WE'RE NO FLASH IN THE PAN I DON'T KNOW WHAT WILL MR GUBER SAID THIS IS A PARTICULARLY EXCITING MOMENT BECAUSE IT VALIDATES OUR APPROACH AND WILLINGNESS TO HAVE A VARIED FORMULA FOR FILMS 9302180082 930218 SPORTS MINORLEAGUE SOUVENIRS TRY CATCHY SELL BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MINORLEAGUE BASEBALL TEAMS NEED JUST ONE THING FOR A HOME RUN A CLEVER NAME CONSIDER THE KERNELS OF CEDAR RAPIDS IOWA UNTIL THE TEAM CHANGED ITS NAME AND LOGO FROM THE MUNDANE BORING REDS TO A BASEBALL SPROUTING FROM A CORN HUSK SOUVENIR SALES WERE FLAT IN THE THREE MONTHS SINCE THE NAME CHANGE THE TEAM HAS SOLD MORE THAN 20000 OF SOUVENIRS ABOUT HALF THE TOTAL FROM ALL OF LAST SEASON AND WE HAVEN'T EVEN THROWN THE FIRST PITCH SAYS GENERAL MANAGER JACK ROEDER NOW PEOPLE IN TOWN ASK WHETHER THE CLUB WILL PLAY BASEBALL THIS SPRING OR JUST SELL SOUVENIRS SAYS MR ROEDER HIS ANSWER I DON'T KNOW THE KERNELS A FARM CLUB OF THE CALIFORNIA ANGELS REPRESENT THE CHANGING MINDSET AMONG MINORLEAGUE BASEBALL TEAMS WHICH ONCE GAVE MARKETING CONSIDERATIONS SHORT SHRIFT NOW THEY'RE FINDING THAT BY ADOPTING UNUSUAL NAMES WITH STYLISH LOGOS THEY CAN RUN UP MAJOR SOUVENIR SALES AND PERHAPS INCREASE ATTENDANCE AS WELL TEAMS WITH THE SAME NAME AS THEIR PARENT CLUBS HAVE NOTHING TO SELL SAYS AL MANGUM GENERAL MANAGER OF THE DURHAM NC BULLS MINORLEAGUE BASEBALL'S BIGGEST MERCHANDISE SELLER ALL THEY HAVE IS A DUPLICATE OF A LOGO ADOPTING A DIFFERENT NAME CAN HELP A TEAM CREATE A LOCAL IDENTITY WITH NATIONAL APPEAL THAT'S WHY GARY NETOLICKY RECENTLY ADDED A DOZEN MINORLEAGUE CAPS TO THE LINEUP AT HIS SEVEN EBY'S SPORTING GOODS STORES IN IOWA MR NETOLICKY SAYS PEOPLE ALREADY ARE BUYING CAROLINA MUDCATS CAPS WHICH FEATURE A WHISKERED CATFISH POKING ITS HEAD THROUGH THE LETTER C THEY COULDN'T CARE LESS THAT THE TEAM IS IN ZEBULON NC OR HAD A LOSING RECORD LAST SEASON PROFESSIONAL SPORTS LEAGUES HAVE MARKETED SOUVENIRS HEAVILY FOR YEARS THE NATIONAL BASKETBALL ASSOCIATION FOR INSTANCE RACKED UP 14 BILLION IN MERCHANDSING REVENUE LAST YEAR THE SAN JOSE SHARKS OF THE NATIONAL HOCKEY LEAGUE SOLD 150 MILLION IN SOUVENIRS LAST YEAR SECOND ONLY TO THE CHICAGO BULLS IN PROFESSIONAL SPORTS AFTER CREATING A LOGO WITH A SHARK SNAPPING A HOCKEY STICK BETWEEN ITS TEETH IT MATTERED LITTLE THAT THE TEAM SUFFERED THROUGH A MISERABLE SEASON ITS FIRST IN THE LEAGUE NOW MINORLEAGUE BASEBALL IS ENTERING THE MAJOR LEAGUES OF MERCHANDISING HELPED BY A TWOYEAROLD AGREEMENT WITH MAJOR LEAGUE BASEBALL THE BIG LEAGUES' MERCHANDISING ARM IS LICENSING MINORLEAGUE LOGOS TO MANUFACTURERS AND PITCHING THEM TO RETAILERS ACROSS THE NATION MINORLEAGUE TEAMS PREVIOUSLY WERE LIMITED TO LOCAL AND MAILORDER SALES LARGELY GENERATED BY ADVERTISEMENTS IN PUBLICATIONS LIKE BASEBALL AMERICA RICHARD WHITE PRESIDENT OF MAJOR LEAGUE BASEBALL PROPERTIES PROJECTS RETAIL SALES OF MINORLEAGUE MERCHANDISE WILL RISE TO 35 MILLION THIS YEAR FROM 25 MILLION LAST YEAR AND A MERE 3 MILLION IN 1991 TEAMS RECEIVE ABOUT 3 OF THE TOTAL WHICH DOESN'T INCLUDE THEIR OWN SALES AT THEIR STADIUMS AND IN LOCAL MARKETS THE MINORLEAGUE SALES MAKE UP A TINY PART OF MAJOR LEAGUE BASEBALL'S MERCHANDISING REVENUE WHICH HIT 24 BILLION LAST YEAR BUT THE MINORLEAGUE LOGOS HAVE STRONG POTENTIAL BECAUSE THEY ADD A TREMENDOUS AMOUNT OF VARIETY TO THE SPORT'S OFFERINGS MR WHITE SAYS BEFORE THE DURHAM BULLS MINORLEAGUE MERCHANDISE SALES WERE STRICTLY BUSH LEAGUE THE TEAM'S MERCHANDISE WITH A LOGO FEATURING A SNORTING BULL LEAPING THROUGH THE LETTER D SOLD WELL THROUGH MUCH OF THE 1980S BUT ONLY LOCALLY THEN CAME THE MOVIE BULL DURHAM IN 1988 SOUVENIR SALES JUMPED TENFOLD SAYS ROB DLUGOZIMA FORMER GENERAL MANAGER THE BULLS QUICKLY SET UP A MAILORDER AND RETAIL SOUVENIR BUSINESS WHICH MAJOR LEAGUE BASEBALL SAYS TODAY LEADS THE MINORS IN REVENUE THOUGH TEAM OFFICIALS WON'T DISCLOSE FIGURES THE MUDCATS FOLLOWED FOUR YEARS AGO WHEN THE TEAM WAS IN COLUMBUS GA ITS NEW OWNER STEVE BRYANT WANTED TO CREATE AN IDENTITY FOR THE CLUB KNOWN THEN AS THE ASTROS FANS WERE ASKED TO SEND IN SUGGESTIONS OUT OF 1000 ENTRIES GENERALS AND CANNONS RECEIVED THE MOST VOTES BUT GENERAL MANAGER JOE KREMER SAW LIMITED MARKETING POTENTIAL IN EITHER WE WANTED EVERYBODY TO REACT TO THE NAME SAYS MR KREMER WE DIDN'T CARE IF IT WAS POSITIVE OR NEGATIVE MUDCATS A NAME THREE PEOPLE SUGGESTED SEEMED TO MEET THE CRITERION TEAM OFFICIALS ALSO SENSED IT WAS UNUSUAL ENOUGH TO SELL OUTSIDE THE AREA THEY ALSO LIKED SCRAMBLE DOGS BUT FIGURED FEW PEOPLE OUTSIDE GEORGIA WOULD KNOW WHAT IT MEANS A CHOPPEDUP HOT DOG WITH CHILI AND OYSTER CRACKERS THE MUDCATS LOGO WAS DESIGNED IN ONE DAY BY AN ARTIST AT MR BRYANT'S OUTDOOR ADVERTISING FIRM IN RALEIGH NC WHO SENT FAXES OF HIS IDEAS BACK AND FORTH TO MUDCATS OFFICIALS IN COLUMBUS FOR OPENING NIGHT THE TEAM ORDERED 1250 CAPS FIGURING IT WOULD REORDER ONCE DURING THE SEASON INSTEAD IT SOLD OUT THAT NIGHT TODAY THE MUDCATS SELL 125 OF SOUVENIRS AT GAMES FOR EACH FAN THROUGH THE GATE COMPARED WITH A MINORLEAGUE AVERAGE OF 40 CENTS THAT ISN'T BECAUSE FEWER PEOPLE ATTEND MUDCATS GAMES THE TEAM FINISHED SECOND IN ATTENDANCE LAST YEAR IN THE SOUTHERN LEAGUE DRAWING 270000 FANS CLUB OFFICIALS SAY THE MUDCATS LOGO AND MERCHANDISING EFFORTS HELPED THE TEAM'S ATTENDANCE OVERCOME ITS POOR 5292 RECORD SOUVENIR SALES TOTALED 400000 TO 500000 LAST YEAR MORE THAN DOUBLE THE TOTAL OF 150000 TO 200000 IN 1989 THE MUDCATS' FIRST SEASON THE MUDCATS' MERCHANDISE SALES ARE CLOSE BEHIND THE DURHAM BULLS ACCORDING TO MAJOR LEAGUE BASEBALL OTHER TEAMS NOW ARE FOLLOWING THE LEAD OF THE BULLS AND MUDCATS THE ALBANY GA POLECATS ARE ONE OF THE LATEST TO MAKE THE SWITCH KNOWN AS THE FLYERS WHEN IT WAS IN SUMTER SC THE TEAM HELD A CONTEST IN SEARCH OF A NEW MASCOT AFTER MOVING IN 1991 GENERAL MANAGER SCOTT SKADAN SAYS 90 OF THOSE SUBMITTED WERE INDIAN NAMES WHICH THE TEAM DISMISSED AFTER CONSIDERING OBJECTIONS OF NATIVE AMERICANS TO OTHER SPORTS TEAMS WITH INDIAN NAMES OTHER ENTRIES ALSO FAILED TO INTEREST TEAM OFFICIALS IF WE WERE CALLED THE NUTS OR THE PECANS OR THE PINE TREES NO ONE WOULD'VE EVER LOOKED TWICE AT US MR SKADAN SAYS THEY TURNED TO THE DICTIONARY FOR HELP AND STUMBLED UPON POLECAT MR SKADAN BURIED IT AMONG A HOST OF NAMES FAXED TO OWNER RICK HOLTZMAN IN CHICAGO MR HOLTZMAN REALIZED THE TEAM HAD FOUND ITS MASCOT PEOPLE IN ALBANY AT FIRST DIDN'T LIKE THE NAME OR LOGO A SMILING SKUNK IN JERSEY AND CLEATS TOSSING A BASEBALL SAYS MR SKADAN IT CREATED QUITE A STINK BUT PEOPLE FROM OUTSIDE THE AREA LOVED THE NAME AS THE MEDIA PICKED UP ON THE POLECATS AND THE TEAM ADVERTISED IN BASEBALL AMERICA AND BASEBALL WEEKLY MAILORDER SALES GREW THE TEAM EVEN RECEIVED A REQUEST FOR A SOUVENIR BROCHURE FROM VATICAN CITY THE CHARLESTON SC RAINBOWS ARE AMONG THE TEAMS CONSIDERING CHANGING A NAME CHANGE FOR THE 1994 SEASON WHY MR DLUGOZIMA THE FORMER DURHAM BULLS GENERAL MANAGER WHO NOW FILLS THE SAME ROLE FOR THE RAINBOWS SAYS SOUVENIR SALES ARE VIRTUALLY NONEXISTENT 9302180081 930218 CLINTON'S ECONOMIC PACKAGE HEALTHCARE GOALS TAKE A BACK SEAT TO DRIVING DOWN THE DEFICIT FOR NOW BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC PACKAGE PUTS DEFICIT REDUCTION AHEAD OF UNIVERSAL HEALTHCARE COVERAGE FOR NOW THE PLAN UNVEILED BY MR CLINTON YESTERDAY PROPOSES MORE THAN 38 BILLION OF SAVINGS FROM PROJECTED FEDERAL HEALTH EXPENDITURES OVER THE NEXT FOUR FISCAL YEARS INCLUDING REDUCTIONS IN ANNUAL INCREASES IN PAYMENTS TO DOCTORS AND HOSPITALS UNDER THE MEDICARE PROGRAM FOR THE ELDERLY AND DISABLED BUT THE SAVINGS WOULD GO TOWARD SHRINKING THE BUDGET DEFICIT NOT TOWARD HELPING FINANCE MR CLINTON'S GOAL OF OVERHAULING THE HEALTHCARE SYSTEM TO COVER THE 37 MILLION AMERICANS NOW UNINSURED THE PRESIDENT HAS PROMISED TO SUBMIT TO CONGRESS BY MAY 1 A PLAN TO PROVIDE HEALTH INSURANCE TO ALL AMERICANS AND CURB THE SHARP RISE IN MEDICAL COSTS THE CLINTON ADMINISTRATION HAS A TASK FORCE OF SIX CABINET SECRETARIES AND TOP DOMESTIC POLICY ADVISERS ALONG WITH A WORKING GROUP OF ABOUT 300 GOVERNMENT OFFICIALS AND OUTSIDE HEALTH EXPERTS WORKING ON THE PACKAGE BUT THE USE OF MEDICARE AND MEDICAID SAVINGS WHICH WERE PAINFULLY EKED OUT FROM SOME 31 PARTS OF THOSE PROGRAMS FOR DEFICIT REDUCTION WILL MAKE THEIR JOB MUCH MORE DIFFICULT AND MAKE IT ALL THE MORE LIKELY THAT A NEW ROUND OF TAX INCREASES WILL BE NEEDED TO FINANCE THE HEALTH SYSTEM'S OVERHAUL IN HER CONFIRMATION HEARING BEFORE THE SENATE FINANCE COMMITTEE HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAID MR CLINTON HAD INDICATED HE WANTED TO USE MEDICARE SAVINGS TO FUND EXPANSION OF HEALTH COVERAGE BUT BRIEFING REPORTERS YESTERDAY ON THE HEALTH PROVISIONS IN THE ECONOMIC PLAN MS SHALALA DISPUTED THE NOTION THAT USING MEDICARE SAVINGS FOR DEFICIT REDUCTION WILL IMPEDE EFFORTS TO COME UP WITH A HEALTHCARE REFORM PLAN I CONSIDER THESE UNFORTUNATE BUT NECESSARY MS SHALALA SAID I DON'T BELIEVE THEY TIE OUR HANDS IN ACHIEVING THE GOAL OF UNIVERSAL COVERAGE DESPITE THE CURBS IN MEDICARE AND MEDICAID THE FEDERALSTATE HEALTH PROGRAM FOR POOR PEOPLE THE ADMINISTRATION IS PROPOSING TO PUMP MORE MONEY INTO PREVENTIVE HEALTH PROGRAMS THE AIM IS TO REDUCE FUTURE HEALTH COSTS BY INVESTING IN PREVENTION VERY EARLY MS SHALALA SAID MR CLINTON UNVEILED A PROPOSAL TO SPEND AN ADDITIONAL 26 BILLION OVER THE NEXT FOUR YEARS ON PUBLIC HEALTH PROGRAMS INCLUDING AN EXTRA 82 BILLION ON AIDS PREVENTION IMMUNIZATIONS WOMEN'S HEALTH RESEARCH AND OTHER INITIATIVES HE ALSO PROPOSED SPENDING AN EXTRA 46 MILLION NEXT YEAR AND 15 BILLION OVER FOUR YEARS ON SUBSTANCEABUSE PREVENTION AND TREATMENT EFFORTS THE PRESIDENT ALSO PLANS TO REQUEST AN ADDITIONAL 200 MILLION IN THE CURRENT FISCAL YEAR FOR THE RYAN WHITE AIDS PROGRAM TO HELP STATE AND LOCAL GOVERNMENTS CARE FOR PATIENTS WITH THE DISEASE THAT IS IN ADDITION TO THE 342 MILLION ALREADY APPROPRIATED FOR THE EFFORT THEN OVER THE NEXT FOUR YEARS HE PLANS TO ASK FOR AN EXTRA 949 MILLION FOR THE PROGRAM LIVING UP TO HIS PLEDGE TO FUND THE PROGRAM UP TO THE LEVEL AT WHICH IT WAS AUTHORIZED MS SHALALA SAID REPEATEDLY THAT MEDICARE AND MEDICAID BENEFICIARIES WON'T BE HURT BY THE SPENDING REDUCTIONS THIS WILL NOT CHANGE IN ANY SIGNIFICANT WAY THE QUALITY OF THEIR CARE OR WHAT THEY PAY FOR THEIR CARE SHE SAID BUT THE BIGGEST SAVINGS THE ADMINISTRATION IS PROPOSING IS THE ELIMINATION OF A FEDERAL REQUIREMENT THAT STATE MEDICAID PROGRAMS HAVE TO PAY FOR HOME HEALTH CARE ENDING THAT MANDATE IS PROJECTED TO SAVE THE FEDERAL GOVERNMENT WHICH CONTRIBUTES TO STATE MEDICAID PROGRAMS 41 BILLION OVER FOUR YEARS MANY PATIENTS FIND HOME CARE PREFERABLE TO A HOSPITAL STAY AND CONSEQUENTLY ARE LIKELY TO BE UPSET BY THE NEW MEASURE THE ADMINISTRATION INTENDS TO MAKE DOCTORS AND HOSPITALS BEAR MOST OF THE SAVINGS WITH HOSPITALS SUFFERING A FAR LARGER BLOW THE ANNUAL INCREASE IN MEDICARE DOCTORS FEES WOULD BE REDUCED IN 1994 SUBSIDIES TO TEACHING HOSPITALS ALSO WOULD BE REDUCED AS WOULD REIMBURSEMENTS FOR HOSPITAL OUTPATIENT SERVICES THE INCREASE IN HOSPITAL INPATIENT PAYMENTS WOULD BE CURBED AND PAYMENTS TO MEDICAL LABORATORIES WOULD BE REDUCED FREDERICK GRAEFE A LOBBYIST FOR HOSPITALS CONTENDED THAT THE MEDICARE LIMITS WILL FORCE INSTITUTIONS TO RAISE THEIR PRICES FOR EVERYONE OUTSIDE THE MEDICARE PROGRAM THESE MEDICARE BUDGET CUTS WITHOUT COMPREHENSIVE HEALTHCARE REFORM WILL UNFORTUNATELY EXACERBATE THE EXISTING COST SHIFT AND LEAD INEVITABLY TO ACROSSTHEBOARD PRICE CONTROLS FOR THE HEALTHCARE INDUSTRY HE CHARGED ADMINISTRATION OFFICIALS DISAGREED THEY EMPHASIZED THAT THE CUTS WILL TAKE PLACE AS THE ADMINISTRATION MOVES TO RESTRUCTURE THE ENTIRE HEALTH SYSTEM AND ELIMINATE THE ABILITY OF HEALTH PROVIDERS TO SHIFT COSTS THIS IS THE FIRST PART OF A HEALTHREFORM EFFORT KEN THORPE DEPUTY ASSISTANT SECRETARY FOR HEALTH POLICY SAID AT THE BRIEFING THE SECOND PART HE SAID WILL BE APPLYING EQUAL PRESSURE FOR COSTCONTAINMENT ON THE PUBLIC AND PRIVATE SECTORS AN ARTICLE YESTERDAY INCORRECTLY SAID THAT A FEDERAL MANDATE REQUIRING STATE MEDICAID PROGRAMS TO PAY FOR HOME HEALTH CARE WOULD BE ELIMINATED UNDER A PROPOSAL BY PRESIDENT CLINTON 9302180080 930218 BUSINESS BRIEF CLAYTON DUBILIER & RICE INC PURCHASE OF VAN KAMPEN FROM XEROX IS COMPLETED CLAYTON DUBILIER & RICE INC NEW YORK SAID IT COMPLETED THE PURCHASE OF VAN KAMPEN MERRITT COS FROM XEROX FINANCIAL SERVICES INC FOR ABOUT 360 MILLION A FUND MANAGED BY CLAYTON DUBILIER INVESTED ABOUT 150 MILLION IN THE TRANSACTION AND WILL PROVIDE AN ADDITIONAL 45 MILLION OF CAPITAL TO THE COMPANY VAN KAMPEN MERRITT A MANAGER OF FIXED INCOME INVESTMENT PRODUCTS HAS ABOUT 34 BILLION OF ASSETS UNDER MANAGEMENT OR SUPERVISION XEROX CORP ACQUIRED THE CHICAGOAREA COMPANY IN 1984 CLAYTON DUBILIER & RICE MANAGES MORE THA 1 BILLION OF EQUITY CAPITAL 9302180079 930218 LEISURE & ARTS FILM BILL MURRAY'S ENDLESSLY REPEATING DAY BY JULIE SALAMON THE TRAILER FOR GROUNDHOG DAY REVEALS SO MUCH PLOT AND SO MANY PUNCH LINES IT'S HARD TO IMAGINE WHAT SURPRISES COULD REMAIN IN THIS PICTURE ABOUT A MAN WHO EXPERIENCES THE SAME DAY OVER AND OVER AGAIN INDEED THAT'S THE BEAUTY OF THE MOVIE THERE'S MUCH MORE TO IT THAN THE ELABORATE TRAILER LETS ON A MIRACLE THESE DAYS IT REALLY IS SURPRISING THE FUNNIEST BILL MURRAY MOVIE SINCE STRIPES AND THE ACTOR'S SIXTH COLLABORATION WITH DIRECTOR HAROLD RAMIS MR RAMIS USUALLY WORKS HIS PICTURES CADDYSHACK GHOSTBUSTERS ETC OUT LIKE LONG COMEDY SKETCHES THE JOKES HOLD THEM TOGETHER OR DON'T ESPECIALLY WHEN THEY HAVE TO DRAG ALONG BIG LUMBERING SET PIECES THE WAY THEY DID IN THE ORIGINAL GHOSTBUSTERS FOR A WHILE IT SEEMS THAT GROUNDHOG DAY PERFECTLY FITS THE RAMISMURRAY MOLD ONCE AGAIN MR MURRAY PLAYS A CYNICAL NARCISSISTIC CHARACTER FORCED BY CIRCUMSTANCE TO BECOME A NICER GUY WHO IS REWARDED BY GETTING THE GIRL THE STORY IS A LATENIGHT TV COMEDY SHOW'S IDEA OF KAFKA CREATE AN ABSURD SITUATION TOSS IN A LITTLE PHILOSOPHY AND KEEP THE GAGS COMING SINCE IT'S A MOVIE A ROMANCE IS THROWN IN AS WELL BUT THIS PICTURE WRITTEN BY MR RAMIS AND DANNY RUBIN ISN'T JUST ANOTHER LOOPY GAGFEST THERE'S REAL COHERENCE TO THIS FANTASY ABOUT A ROUTINE ASSIGNMENT FOR A TV WEATHERMAN THAT FORCES HIM TO REALIZE HE'S A JERK AND TO STOP BEING ONE IT'S CERTAINLY NOT LINEAR BUT IT DOESN'T FEEL SLAPDASH EITHER SO IT COMES OFF AS A REAL ROMANTIC COMEDY NOT AS A SENDUP OF ONE THAT MAY HAVE SOMETHING TO DO WITH THE CASTING OF ANDIE MACDOWELL AS THE WOMAN MR MURRAY FALLS FOR THERE IS A SWEETNESS TO HER BEAUTY THAT FITS QUITE NATURALLY INTO A ROMANTIC FANTASY IT'S EASY TO BELIEVE SHE WOULD MAKE A CYNIC STRIVE FOR SINCERITY AND SHE MAKES THE PICTURE'S SENTIMENTAL OVERTONES FEEL LESS CONTRIVED MR MURRAY'S DEADPAN SCREWINESS PLAYS AT PERFECT PITCH AS IT USUALLY DOES WHEN HE'S GIVEN GOOD MATERIAL AND PERFORMERS TO BOUNCE OFF OF THERE'S MS MACDOWELL OF COURSE BUT IN THE BEST COMEDIES THE LITTLE PARTS MATTER AS MUCH AS THE BIG ONES SOMETIMES MORE BECAUSE THEY KEEP THINGS HOPPING HERE THE LITTLE PARTS CRACKLE NOTABLY STEPHEN TOBOLOWSKY AS THE INSURANCESALESMAN CARICATURE AND CHRIS ELLIOTT AS THE SLY NERD CAMERAMAN THE REMAKING OF FOREIGN FILMS INTO AMERICAN MOVIES ISN'T SOMETHING NEW AKIRA KUROSAWA'S 1954 PICTURE THE SEVEN SAMURAI BECAME THE MAGNIFICENT SEVEN IN 1960 THE HIDDEN FORTRESS A 1958 KUROSAWA RELEASE INSPIRED THE STAR WARS TRILOGY 20 YEARS LATER THE 1977 MOVIE THE SORCERER WAS A REMAKE OF THE 1953 FRENCH CLASSIC WAGES OF FEAR ALFRED HITCHCOCK EVEN REWORKED HIS OWN 1934 BRITISH VERSION OF THE MAN WHO KNEW TOO MUCH INTO A 1955 AMERICAN PICTURE WITH DORIS DAY AND JAMES STEWART BUT WITH THE INTERNATIONALIZATION OF FILM FINANCING AND FILM DISTRIBUTION THE PRACTICE HAS BECOME MORE AND MORE COMMON AN ADDITIONAL REASON FOR THE INCREASED POPULARITY OF REMAKES SUGGESTS A FILMBUSINESS FRIEND MAY BE THAT IT'S EASIER FOR TODAY'S VIDEOAGE STUDIO EXECUTIVES TO SEE MOVIE POTENTIAL IN SOMETHING THAT'S ALREADY A MOVIE THE VANISHING REVIEWED HERE LAST WEEK IS AN EXAMPLE OF THE WORST KIND OF ADAPTATION ONE IN WHICH EVERY CHANGE MEANT TO AMERICANIZE THE MOVIE TRIVIALIZES IT ANOTHER CURRENT RELEASE SOMMERSBY SHOWS HOW A PERFECTLY GOOD PICTURE CAN TAKE ITS INSPIRATION FROM ANOTHER AND MORE OR LESS SUCCEED MAINLY BY DEPARTING SO MUCH FROM THE ORIGINAL THAT THE DISCREPANCIES BECOME LESS ANNOYING IN OTHER WORDS THE NEW MOVIE BECOMES SOMETHING ELSE ENTIRELY THE MOVIE SOMMERSBY BORROWS FROM IS THE 1982 FRENCH PICTURE THE RETURN OF MARTIN GUERRE THAT MOVIE SET IN 16THCENTURY RURAL FRANCE IS DISTINCTLY FRENCH BASED ON A REAL COURT CASE CONTESTING THE IDENTITY OF A MAN WHO RETURNED HOME AFTER AN ABSENCE OF MANY YEARS TO CHARM EVERYONE WITH HIS NEW KINDER PERSONA THE PICTURE UNFOLDS WITH SUBTLE ELUSIVENESS SOMMERSBY THE STORY OF A SOUTHERNER WHO RETURNS HOME WITH A NEW KINDER PERSONA AFTER THE CIVIL WAR ISN'T SUBTLE OR ELUSIVE SHORTLY AFTER HIS ARRIVAL SOMMERSBY'S WIFE STARES AT HIM AND MUSES ALOUD I'M THINKING WHO IS THIS MAN SITTING IN MY KITCHEN BUT IF ONE PUTS MARTIN GUERRE OUT OF MIND NOT ALL THAT DIFFICULT TO DO WITH SUCH DIFFERENT SETTINGS AND SUCH A DIFFERENT CAST OF CHARACTERS SOMMERSBY IS QUITE ENJOYABLE THE CONFUSEDIDENTITY STORY IS MUDDLED WITH A CIVILRIGHTS SUBPLOT THAT SOMEONE MUST HAVE THOUGHT WAS REQUIRED IN ANY POSTCIVIL WAR STORY BUT THERE'S MUCH INTELLIGENCE BEHIND BOTH THE SCREENPLAY BY NICHOLAS MEYER AND SARAH KERNOCHAN AND JON AMIEL'S DIRECTION THOUGH THIS IS A MUCH MORE STRAIGHTFORWARD PIECE THAN ONE WOULD EXPECT FROM THE MAN WHO DIRECTED THE BBC TELEVISION SERIES THE SINGING DETECTIVE AND QUIRKY FEATURES LIKE QUEEN OF HEARTS AND TUNE IN TOMORROW THOUGH NO GREAT SPARKS OF PASSION FLY BETWEEN RICHARD GERE AND JODIE FOSTER AS MR AND MRS SOMMERSBY THEY PORTRAY EACH CHARACTER INDIVIDUALLY WITH ENOUGH PASSION TO MAKE YOU WANT TO STRIKE THE SPARKS FOR THEM UNTAMED HEART IS A SCHMALTZY PICTURE ABOUT THE ROMANCE BETWEEN A NICE WAITRESS AND AN EDUCATED BUSBOY WHO BRIEFLY BECOMES HER FAIRY PRINCE THE PERFORMERS ARE CUTE AND LIKABLE MARISA TOMEI AND CHRISTIAN SLATER BUT TONY BILL DIRECTS WITH A HEAVY HAND VIDEO TIP AFTER WATCHING GROUNDHOG DAY YOU MIGHT WANT TO LOOK AT LUIS BUNUEL'S THE EXTERMINATING ANGEL 1962 ABOUT A DINNER PARTY THAT WON'T END 9302180078 930218 FOREIGN EXCHANGE DOLLAR LOWER BUT SHARP SELLOFF CURBED IN ANTICIPATION OF CLINTON'S ADDRESS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH FOREIGNEXCHANGE MARKET PARTICIPANTS AWAITING THE DETAILS OF PRESIDENT CLINTON'S ECONOMIC PLAN THE DOLLAR WAS LOWER YESTERDAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16253 MARKS DOWN FROM 16285 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS QUOTED AT 11965 YEN DOWN FROM 11993 YEN STERLING FELL TO 14455 FROM 14495 AT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16284 MARKS AND AT 11971 YEN THE DOLLAR LOOKS A LITTLE SICK RIGHT NOW SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK DEALERS SAID FEARS MR CLINTON'S DEFICITCUTTING PROGRAM COULD STALL THE US ECONOMIC RECOVERY CONTINUED TO ERODE ENTHUSIASM FOR THE DOLLAR BUT AHEAD OF HIS ECONOMIC ADDRESS LAST NIGHT DEALERS SAID INVESTORS SAW NO REASON TO EXTEND TUESDAY'S SHARP SELLOFF SOME OF THE BEARS DON'T WANT TO GET OVEREXCITED AT THESE LEVELS SAID SIMON FISCHER A VICE PRESIDENT AT SWISS BANK CORP IN NEW YORK DEALERS NOTED THAT THE US STOCK MARKET WHOSE 83POINT DROP ACCELERATED THE DOLLAR'S DOWNWARD SPIRAL TUESDAY ALSO STABILIZED YESTERDAY THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT 331219 UP 270 POINTS ATTEMPTS TO PUSH THE DOLLAR SHARPLY LOWER IN ASIAN TRADING FAILED AS INVESTORS LOOKED FOR ALTERNATIVES AND SAW FEW DEALERS SAID THE ONLY THING THAT'S HOLDING THE DOLLAR UP IS I BELIEVE THAT THE ECONOMIC SITUATION OVERSEAS IN WORSE SAID ALBERT SORIA FOREIGN EXCHANGE MANAGER AT KANSALLIS OSAKE PANKKI IN NEW YORK DEALERS POINTED TO A DEUTSCHE BUNDESBANK REPORT RELEASED YESTERDAY THAT SAID WESTERN GERMAN GROSS DOMESTIC PRODUCT IN THE FOURTH QUARTER OF 1992 CONTRACTED 15 FROM THE THIRD QUARTER AND 05 FROM YEAREARLIER LEVELS MR KATO OF INDUSTRIAL BANK OF JAPAN NOTED THAT THE JAPANESE ECONOMY ISN'T IN MUCH BETTER SHAPE I THINK JAPAN'S GOT MORE OF A WAYS TO GO THAN THE US HE SAID BUT HE SAID THE DOLLAR'S WEAKNESS CONFOUNDED TECHNICAL INDICATIONS THAT THE CURRENCY WOULD BOUNCE BACK AFTER TUESDAY'S PLUNGE THE PERVASIVE BEARISHNESS LEFT THE MARKET VULNERABLE TO NEGATIVE NEWS ON THE DOLLAR BUT ALMOST IMPERVIOUS TO GOOD REPORTS HE SAID MARKET PARTICIPANTS UNLOADED THE DOLLAR AFTER A REPORT THAT A EUROPEAN COMMUNITY OFFICIAL HAD SAID THE COMMUNITY WOULD CALL FOR A STRONGER YEN AT THE GROUP OF SEVEN MEETING OF INDUSTRIALIZED NATIONS FEB 27 BUT MR KATO SAID THE INITIAL REPORT WAS DIFFICULT TO BELIEVE US AND JAPANESE OFFICIALS HAVE STUDIOUSLY AVOIDED SUCH COMMENTS HE NOTED MAKING IT UNLIKELY THAT A EUROPEAN OFFICIAL WOULD ANNOUNCE A POLICY SHIFT EVEN AFTER AN OFFICIAL DENIAL THAT THE COMMENTS HAD BEEN MADE THE DOLLAR NEVER FULLY RECOVERED FROM THE SELLOFF THAT THE ORIGINAL REPORTS TRIGGERED IT SHOWS YOU THAT THE SENTIMENT FOR THE DOLLAR IS STILL ON THE DOWNSIDE MR KATO SAID 9302180077 930218 INTERNATIONAL BRIEF FRAMATOME SA COMPANY PLANS TO ACQUIRE SCHNEIDER GROUP'S JSI UNIT FRENCH STATEOWNED NUCLEAR POWER GROUP FRAMATOME SA SAID IT WILL ACQUIRE JEUMONTSCHNEIDER INDUSTRIE FROM THE SCHNEIDER SA GROUP FOR AROUND 600 MILLION 1088 MILLION TO 700 MILLION FRANCS SCHNEIDER A FRENCH ELECTRICAL EQUIPMENT MAKER HAD CONFIRMED THAT THE DEAL WAS UNDER NEGOTIATION EARLIER THIS MONTH JSI WHICH REPRESENTED 2 OF SCHNEIDER'S GROUP REVENUE IN 1991 MAKES AND MAINTAINS NUCLEAR EQUIPMENT AND SUPPLIES HEAVY ENGINEERING EQUIPMENT FOR NAVAL VESSELS AND ALTERNATORS FOR GENERAL INDUSTRIAL USE IT HAD 1992 SALES OF 115 BILLION FRANCS ACCORDING TO A JOINT COMMUNIQUE FRAMATOME SAID THAT LATER THIS YEAR IT PLANS TO SELL TO FRENCH INDUSTRIAL GROUP ALCATELALSTHOM SA THE NONNUCLEAR ACTIVITIES OF JSI WHICH REPRESENT THE EQUIVALENT OF 600 MILLION FRANCS OR OVER HALF ITS REVENUES A FRAMATOME SPOKESWOMAN SAID THE PRICE OF THE SECOND SALE HADN'T BEEN DETERMINED YET ALCATELALSTHOM IS A MAJOR MANUFACTURER OF TURBINES AND OTHER POWER PRODUCTION EQUIPMENT 9302180076 930218 INTERNATIONAL BRIEF CORP MAPFRE SA SPANISH INSURANCE FIRM SAYS 1992 PRETAX PROFIT ROSE 17 SPAIN'S LEADING INSURANCE GROUP CORP MAPFRE SA SAID PRELIMINARY RESULTS SHOW ITS CONSOLIDATED PRETAX PROFIT ROSE 17 IN 1992 TO 27937 BILLION PESETAS 24 BILLION FROM 239 BILLION PESETAS IN 1991 MAPFRE INMUEBLES THE COMPANY'S REAL ESTATE UNIT SAW OPERATING PROFIT DROP 41 IN 1992 TO 415 BILLION PESETAS FROM 708 BILLION PESETAS IN 1991 CORP MAPFRE SAID PREMIUM EARNINGS AT ITS INTERNATIONAL UNIT MAPFRE INTERNACIONAL SHOWED A PRELIMINARY INCREASE OF 18 IN 1992 TO 6341 BILLION PESETAS FROM 5378 BILLION PESETAS IN 1991 PREMIUM EARNINGS AT ITS LIFE INSURANCE UNIT MAPFRE VIDA ROSE 18 TO 5395 BILLION PESETAS FROM 4583 BILLION PESETAS IN 1991 THE COMPANY SAID BANCO MAPFRE'S PRETAX PROFIT ROSE A PRELIMINARY 2 IN 1992 TO 2085 BILLION PESETAS FROM 2045 BILLION PESETAS A YEAR EARLIER 9302180075 930218 SOME CHRYSLER DEALERS PLAN SALE ON EAGLE VISION SEDAN HIGHLAND PARK MICH IN AN EFFORT TO BOOST SALES OF CHRYSLER CORP'S NEW EAGLE VISION SEDAN DEALERS IN SELECT MARKETS WILL BE ADVERTISING A NATIONAL EAGLE SALE BEGINNING NEXT MONTH THE MARKETING MOVE IS LARGELY A RESPONSE TO DISAPPOINTING EARLY SALES OF THE EAGLE VISION WHICH IS ONE OF THREE NEW MIDSIZE LH CARS LAUNCHED LAST FALL BY CHRYSLER WHILE CHRYSLER ISN'T OFFERING DISCOUNTS ON THE VISION SOME EAGLE DEALERS WILL CUT PRICES TO SPUR SALES OF THE MODELS CHRYSLER DEALERS CURRENTLY HAVE A 96DAY SUPPLY OF VISIONS ON THE MARKET COMPARED WITH ONLY A 39DAY SUPPLY OF CONCORDES AND A 49DAY SUPPLY OF INTREPIDS ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE JOURNAL A 60DAY TO 65DAY SUPPLY OF INVENTORY IS CONSIDERED IDEAL THE NO 3 AUTO MAKER SAYS THE VISION TSI WITH A MULTIVALVE 35 LITER SIXCYLINDER ENGINE IS SELLING WELL AND THE OVERSUPPLY IS DUE TO THE FACT THAT THE AUTO MAKER INITIALLY BUILT TOO MANY VISION ESI'S WITH A LESS POWERFUL 33 LITER ENGINE 9302180074 930218 ABREAST OF THE MARKET STOCKS FINISH MIXED AS INVESTORS AWAIT CLINTON'S ECONOMIC PLAN BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED NARROWLY MIXED WITH THE DOW JONES INDUSTRIAL AVERAGE EKING OUT A TINY GAIN MANY INVESTORS STAYED AWAY FROM THE MARKET YESTERDAY AWAITING PRESIDENT CLINTON'S ADDRESS LAST NIGHT MR CLINTON WAS TO LAY OUT HIS ECONOMIC STIMULUS AND BUDGET PLANS INCLUDING DETAILS OF A TAX INCREASE PROPOSAL THAT DEPRESSED STOCKS ON TUESDAY ALTHOUGH A CLOSING UPDRAFT IN SHARE PRICES ENCOURAGED TRADERS YESTERDAY ANALYSTS WEREN'T NECESSARILY CHEERED BY THE APPARENT CALM FOLLOWING TUESDAY'S ROUT THE INDUSTRIALS WHICH LOST 8294 POINTS TUESDAY ENDED 270 POINTS HIGHER AT 331219 I WOULDN'T BE OVERLY ENCOURAGED BY WHAT I'M SEEING TODAY SAID EDWARD NICOSKI MARKET STRATEGIST FOR PIPER JAFFRAY HE NOTED THAT FALLING STOCKS OUTNUMBERED RISING STOCKS 1151 TO 783 I'M SEEING TOO MANY STOCKS VIOLATING UPWARD TRENDS THAT DATE BACK TO OCTOBER SAID MR NICOSKI HE ADDED THAT TUESDAY'S SHARP SELLOFF SHOULDN'T BE COMPARED WITH A 104POINT INTRADAY PLUNGE IN OCTOBER WHICH MARKED THE BEGINNING OF THE MARKET'S RALLY BY EARLY OCTOBER LAST YEAR THE MARKET HAD BEEN FALLING FOR SOME WEEKS HE SAID WHILE TUESDAY'S PLUNGE CAME AS STOCKS WERE BACKING OFF RECORD HIGHS THE BROADER MARKET REMAINED SOFT YESTERDAY STANDARD & POOR'S 500STOCK INDEX LOST 061 TO 43330 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID 075 TO 23874 BIG BOARD VOLUME MODERATED FROM TUESDAY'S HEAVY TRADING BUT WAS STILL A ROBUST 287180000 SHARES ABOUT 325350000 SHARES CHANGED HANDS TUESDAY JAMES C ANDREWS FIRST VICE PRESIDENT IN CHARGE OF INSTITUTIONAL TRADING AT JANNEY MONTGOMERY SCOTT SAID NEWS REPORTS FOCUSING ON THE PRESIDENT'S PROPOSED BUDGET CUTS HELPED KEEP STOCKS AFLOAT YESTERDAY MR CLINTON'S PLAN WAS EXPECTED TO SCRATCH A 30 BILLION SPACE STATION PROJECT FOR EXAMPLE IN FAVOR OF A MUCH SMALLER PLAN PART OF WALL STREET'S ANGER ON TUESDAY CAME BECAUSE MR CLINTON'S PLAN APPEARED TO RELY MORE ON TAX INCREASES THAN SPENDING CUTS ALL THESE LITTLE BLURBS ABOUT CUTS GIVE US A RAY OF HOPE THAT MAYBE WE WILL GET SOMETHING TONIGHT THAT WILL GIVE THE MARKET A POSITIVE SPIN TOMORROW SAID MR ANDREWS MR ANDREWS SAID MANY TRADERS WERE BUYING STOCKINDEX CALL OPTIONS AT THE END OF THE DAY HOPING TO MAKE SOME FAST MONEY ON AN EARLY RALLY TODAY SEVERAL OF THE STOCK GROUPS THAT WERE BATTERED ON TUESDAY REBOUNDED YESTERDAY MOST NOTABLY TECHNOLOGY SHARES RALLIED HEWLETTPACKARD WHICH REPORTED SURPRISINGLY STRONG FIRSTQUARTER EARNINGS YESTERDAY GAINED 4 5/8 TO 72 1/4 THE COMPANY POSTED PROFIT OF 103 A SHARE IN THE QUARTER NEARLY A DIME MORE THAN MANY ANALYSTS EXPECTED IT HAD OPERATING PROFIT OF 119 A SHARE A YEAR AGO MOTOROLA ROSE 1 7/8 TO 54 1/2 MERRILL LYNCH UPGRADED ITS NEARTERM RATING ON THE STOCK TO ABOVE AVERAGE FROM NEUTRAL DIGITAL EQUIPMENT GAINED 1 1/8 TO 42 5/8 AND INTERNATIONAL BUSINESS MACHINES PICKED UP 1/2 POINT TO CLOSE AT 50 1/2 SOME OF THE AUTO STOCKS RECOVERED FROM TUESDAY'S SLIDE GENERAL MOTORS GAINED 1 TO 39 5/8 AND CHRYSLER ADDED 2 TO 38 1/2 FORD MOTOR EASED 3/4 TO 46 3/4 HOWEVER GOODYEAR TIRE & RUBBER ADDED 1 TO 67 5/8 PAINEWEBBER ADDED THE STOCK TO ITS FOCUS LIST OF RECOMMENDED STOCKS CITING WHAT IT CALLED THE COMPANY'S SOLID GROWTH PROSPECTS PAPER STOCKS FARED WELL EXCEPT FOR KIMBERLYCLARK LATE TUESDAY IT SAID ITS FIRSTQUARTER PROFIT MAY NOT REACH THE 82 CENTS A SHARE EARNED A YEAR AGO THE STOCK DROPPED 2 TO 55 1/8 YESTERDAY HEALTH CARE STOCKS WERE MIXED SOME DRUG STOCKS REBOUNDED AFTER TAKING A DRUBBING TUESDAY WARNERLAMBERT FOR EXAMPLE ROSE 1 TO 66 WHILE BRISTOLMYERS SQUIBB GAINED 3/4 TO 57 3/8 MERCK LOST 3/8 TO 37 1/2 HOWEVER AND PFIZER FELL 7/8 TO 59 1/4 HEALTHSOUTH REHABILITATION JUMPED 1 1/2 TO 18 3/8 THE COMPANY REPORTED FOURTHQUARTER PROFIT OF 30 CENTS A SHARE COMPARED WITH 23 CENTS A YEAR EARLIER CORNING SLID 1 7/8 TO 34 1/4 A GRAND JURY IS LOOKING INTO CLAIMS THAT DOW CORNING THE COMPANY'S JOINT VENTURE WITH DOW CHEMICAL HID INFORMATION THAT WOULD HAVE RAISED SAFETY QUESTIONS ABOUT ITS SILICONEGEL BREAST IMPLANTS WELLMAN LOST 2 1/4 TO 20 1/2 AFTER THE MAKER OF NYLON AND POLYESTER DISAPPOINTED INVESTORS BY REPORTING FOURTHQUARTER PROFIT BELOW EXPECTATIONS THE COMPANY EARNED 39 CENTS A SHARE IN THE LATEST QUARTER DOWN FROM 44 CENTS A YEAR EARLIER AMERICAN STOCK EXCHANGE VOLUME TOTALED 15540000 SHARES COMPARED WITH 19250000 TUESDAY THERE WERE 184 ISSUES ADVANCING 382 DECLINING AND 215 UNCHANGED 9302180073 930218 INTERNATIONAL BRIEF DEGUSSA AG GERMAN FIRM'S PRETAX PROFIT ROSE 14 IN ITS FIRST QUARTER GERMANY'S DEGUSSA AG CITING THE BENEFITS OF A RESTRUCTURING SAID ITS PRETAX PROFIT IN THE FISCAL FIRST QUARTER ENDED DEC 31 ROSE 14 TO 49 MILLION MARKS 301 MILLION THE FRANKFURTBASED CHEMICALS AND METALS GROUP SAID SALES CLIMBED 9 TO 326 BILLION MARKS 2 BILLION FROM 299 BILLION MARKS A YEAR EARLIER EXCLUDING PRECIOUS METALS SALES WHICH ALONE HAD STRONG GAINS GROUP SALES WOULD HAVE RISEN ONLY 5 THE COMPANY SAID THE COMPANY SAID IT HAS BEEN HIT BY THE STRONGER DOLLAR FALLING COMMODITIES PRICES AND THE WORLDWIDE RECESSION WHILE THE COMPANY SAID ITS RESTRUCTURING HAS STRENGTHENED ITS RESISTANCE TO BAD ECONOMIC TIMES THE MANAGEMENT BOARD SAID IN A LETTER TO SHAREHOLDERS THAT SIGNS OF A RECOVERY IN THE WORLD ECONOMY CANNOT YET BE RECOGNIZED THE RESTRUCTURING INCLUDED DECENTRALIZATION OF DECISIONMAKING AND JOB CUTS 9302180072 930218 CLINTON'S ECONOMIC PACKAGE PROGRAM TO HELP WORKING POOR WITH BIGGER TAX CREDIT IS URGED BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PROPOSING A MAJOR EXPANSION OF THE EARNED INCOME TAX CREDIT A FEDERAL PROGRAM THAT REWARDS THE WORK EFFORTS OF THE NATION'S POOREST AMERICANS THE EXPANSION WON'T BE CHEAP ACCORDING TO ADMINISTRATION CALCULATIONS REVENUE LOST TO THE TAX CREDIT WILL RISE BY 525 MILLION IN THE FISCAL YEAR ENDING SEPT 30 1994 AND BY 62 BILLION IN FISCAL 1995 THE EARNED INCOME TAX CREDIT CURRENTLY COSTS THE TREASURY 135 BILLION A YEAR THE BOOST IS LIKELY TO MEET WITH APPROVAL FROM A BROAD SPECTRUM OF POLITICIANS AND POVERTY EXPERTS WHO HAVE LONG TOUTED THE CREDIT AS ONE OF THE BEST KNOWN MEANS TO HELP THE WORKING POOR AND COMBINED WITH CLINTON PROPOSALS TO INCREASE THE FOOD STAMP PROGRAM AND THE PROGRAM THAT HELPS THE POOR PAY THEIR HEATING BILLS THE CHANGE ALLOWS THE ADMINISTRATION TO ARGUE THAT ITS OVERALL TAX PACKAGE WHICH INCLUDES A NEW BROADBASED ENERGY TAX WON'T HURT FAMILIES EARNING LESS THAN 20000 A YEAR IN ADDITION THE PROPOSED CHANGES SHOULD MAKE THE EARNED INCOME TAX CREDIT MORE GENEROUS AT THE LOWEST INCOMES ALLOWING PRESIDENT CLINTON TO FULFILL A CAMPAIGN PROMISE TO USE THE TAX CREDIT TO HELP PARTTIME WORKERS IN KEEPING WITH MR CLINTON'S CLAIM THAT HE IS A NEW DEMOCRAT WHO REJECTS OLDSTYLE LIBERAL SOLUTIONS THE EXPANSION OF THE CREDIT DRAWS A SHARP DISTINCTION BETWEEN POOR PEOPLE WHO WORK AND POOR PEOPLE WHO DON'T THE CREDIT GOES ONLY TO THOSE WITH EARNED INCOME WHILE THE WORKING POOR WILL RECEIVE MORE FEDERAL HELP UNDER MR CLINTON'S PLAN THE NONWORKING POOR WILL END UP PAYING MORE FEDERAL TAXES BECAUSE OF THE NEW ENERGY TAX EVEN AS A WAY TO HELP WORKING PEOPLE THE EARNED INCOME TAX CREDIT HAS ITS DRAWBACKS ALTHOUGH THERE ARE PROVISIONS IN THE CURRENT LAW FOR EMPLOYERS AND EMPLOYEES TO INCORPORATE THE TAX CREDIT INTO WEEKLY PAYCHECKS FEW ACTUALLY DO SO BECAUSE THE PROCESS IS CUMBERSOME AS A RESULT LOWINCOME WORKERS GENERALLY RECEIVE THE TAX CREDIT ONLY WHEN THEY FILE THEIR TAXES AT YEAR'S END AND WHILE SOME HOMELESS SHELTERS AND OTHER INSTITUTIONS SERVING LOWINCOME PEOPLE HAVE BEGUN TO PROVIDE ASSISTANCE IN WRESTLING WITH FEDERAL TAX FORMS MANY ELIGIBLE RECIPIENTS NEVER RECEIVE THE MONEY OWED THEM BECAUSE THEY DON'T FILE TAX RETURNS IN ADDITION WHILE THE PROGRAM UNDOUBTEDLY CREATES AN INCENTIVE FOR THE POOREST OF THE POOR TO WORK THE CREDIT AS CURRENTLY STRUCTURED GRADUALLY DIMINISHES TO ZERO FOR FAMILIES EARNING BETWEEN ROUGHLY 12000 AND 24000 A YEAR INEVITABLY CREATING FOR WAGEEARNERS IN SUCH FAMILIES A DISINCENTIVE TO INCREASE THEIR EARNED INCOME AS A RESULT MOST EXPERTS HESITATE TO MAKE LARGE CLAIMS FOR THE PROGRAM'S ABILITY TO ENCOURAGE PARTICIPANTS TO WORK BUT THE CHANGES PROPOSED BY THE CLINTON ADMINISTRATION WOULD LESSEN THIS DISINCENTIVE SOMEWHAT BY ALLOWING FAMILIES TO KEEP RECEIVING THE CREDIT AT INCOMES UP TO ROUGHLY 30000 IN ADDITION THE PROGRAM WOULD FOR THE FIRST TIME BE EXTENDED TO LOWINCOME WAGEEARNERS WITHOUT CHILDREN 9302180071 930218 S&P DOWNGRADES DEBT OF 2 JAPANESE BANKS OVER LOAN PROBLEMS NEW YORK STANDARD & POOR'S CORP DOWNGRADED THE SENIOR AND LONGTERM DEBT RATINGS ON TWO JAPANESE BANKS CITING A LARGE NUMBER OF PROBLEM LOANS AND JAPAN'S UNCERTAIN ECONOMY S&P LOWERED RATINGS ON INDUSTRIAL BANK OF JAPAN LTD'S 8 BILLION OF LONGTERM DEBT INCLUDING SENIOR DEBT AND LONGTERM CERTIFICATES OF DEPOSIT TO DOUBLEA FROM DOUBLEAMINUS OUTLOOK ON THE LONGTERM DEBT RATING REMAINS NEGATIVE THE RATINGS AGENCY NOTED A SUBSTANTIAL INCREASE IN THE BANK'S PROBLEM LOAN BOOK AND AN EXPECTATION THAT ASSET QUALITY PROBLEMS WILL WORSEN IN THE NEAR TERM THE BANK IS FURTHER SQUEEZED BY A DEPRESSED EQUITIES MARKET MAKING IT DIFFICULT FOR INDUSTRIAL BANK OF JAPAN TO REALIZE PROFITS BY SELLING UNDERVALUED SECURITIES S&P ALSO LOWERED RATINGS ON LONGTERM CREDIT BANK OF JAPAN LTD'S 68 BILLION IN LONGTERM DEBT INCLUDING SENIOR DEBT AND LONGTERM CERTIFICATES OF DEPOSIT TO SINGLEA FROM SINGLEAPLUS THE OUTLOOK ON THE LONGTERM DEBT RATING REMAINS NEGATIVE THE RATINGS AGENCY SAID THE BANK'S ASSET QUALITY HAS DETERIORATED SHARPLY SINCE MARCH 1992 S&P ADDED THAT THE LEVEL OF PROBLEM LOANS TO ITS EQUITY BASE AND EARNINGS IS HIGH IN COMPARISON WITH PEER JAPANESE BANKS 9302180070 930218 HIGHER PORTFOLIO TAX FOR BROKERAGES BOOST IN SEC FEES SOUGHT WASHINGTON PRESIDENT CLINTON ASKED WALL STREET TO MAKE ITS SHARE OF FINANCIAL SACRIFICE THROUGH HIGHER TAXES ON BROKERAGE FIRMS' SECURITIES PORTFOLIOS AND A BOOST IN FEES FOR REGISTRATIONS AT THE SECURITIES AND EXCHANGE COMMISSION BROKERAGE FIRMS WOULD BE REQUIRED TO VALUE THEIR SECURITIES PORTFOLIOS ACCORDING TO MARKET PRICES AT THE END OF EACH YEAR RATHER THAN PEGGING THE VALUE TO PURCHASE PRICES MR CLINTON'S PLAN PROJECTS THAT REVENUE FROM TAXING THE UNREALIZED GAIN WOULD TOTAL 457 MILLION IN 1994 AND MORE THAN DOUBLE THAT OR 109 BILLION IN 1995 TAX REVENUE FOR 1996 AND 1997 IS PROJECTED AT 11 BILLION AND 112 BILLION RESPECTIVELY PRESIDENT BUSH FLOATED A SIMILAR PROPOSAL FOR INCREASING WALL STREET'S TAX BILL A YEAR AGO BUT THE IDEA SANK IN CONGRESS UNDER THE WEIGHT OF PROTESTS FROM WALL STREET FIRMS MR CLINTON'S ECONOMIC PLAN ALSO PROPOSES TAPPING SOME OF WALL STREET'S CLIENTS FOR HIGHER FEES FOR SECURITIES REGISTRATIONS THE PRESIDENT DIDN'T SPECIFY THE SIZE OF THE PROPOSED INCREASE BUT HIS PLAN PROJECTED TOTAL NEW REVENUE OF 47 MILLION THIS YEAR RISING TO 54 MILLION IN 1997 REGISTRANTS CURRENTLY PAY THE SEC 1/32 OF 1 OF THE VALUE OF THE SECURITIES BEING OFFERED SEC EXECUTIVE DIRECTOR JAMES MCCONNELL SAID THE AGENCY HADN'T BEEN BRIEFED ON ANY PROPOSED FEE INCREASE HE SAID THE CURRENT PACE OF NEW REGISTRATIONS COULD PRODUCE A 47 MILLION INCREASE IN REVENUE THIS YEAR WITHOUT CHANGING THE FEE SCHEDULE REGISTRATION FEES MAKE UP THE BULK OF THE 400 MILLION IN FEES THE SEC TAKES IN ANNUALLY MR MCCONNELL SAID 9302180069 930218 BUSINESS BRIEF PRICOR INC PLAN TO MERGE IS CANCELED SECURED DEBT IS IN DEFAULT PRICOR INC SAID IT ENDED A MERGER AGREEMENT WITH AN OPERATOR OF MEDICAL FACILITIES AND SAID ABOUT 10 MILLION OF ITS SECURED DEBT IS IN DEFAULT IN AUGUST 1992 PRICOR MURFREESBORO TENN SIGNED A DEFINITIVE MERGER AGREEMENT WITH CLOSELY HELD CUMBERLAND HEALTH SYSTEMS IN NASHVILLE TENN UNDER THE AGREEMENT EITHER PRICOR OR CUMBERLAND HAD THE OPTION TO END THE PACT IF THE CONDITIONS OF THE AGREEMENT COULDN'T BE SATISFIED BY FEB 15 1993 PRICOR WHICH OPERATES SPECIAL EDUCATION SCHOOLS RESIDENTIAL TREATMENT CENTERS AND CORRECTIONAL FACILITIES SAID THE 10 MILLION IN SECURED DEBT IS CURRENTLY DUE AND PAYABLE TO ITS BANKS THE COMPANY ALSO SAID THAT IT OWES CUMBERLAND APPROXIMATELY 428000 WHICH IS ALSO DUE AND PAYABLE PRICOR SAID IT INTENDS TO CONTINUE DISCUSSIONS WITH ITS BANKS AND OTHER CREDITORS WHILE IT EXPLORES FINANCING ALTERNATIVES 9302180068 930218 PAPER COMPANY INITIATES MEETINGS WITH BIG HOLDERS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL CHAMPION INTERNATIONAL CORP HOPING TO HEAD OFF EMBARRASSING CONFRONTATIONS WITH SHAREHOLDERS AT ITS ANNUAL MEETING THIS SPRING HAS BEEN INITIATING DISCUSSIONS WITH SOME OF ITS LARGEST INVESTORS THREE OUTSIDE DIRECTORS OF CHAMPION MET TUESDAY WITH OFFICIALS OF THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM ASKING THEM TO WITHDRAW A SHAREHOLDER PROPOSAL FROM THE COMPANY'S PROXY MATERIAL WHICH WILL SOON BE MAILED TO HOLDERS A SPOKESMAN FOR THE PENSION FUND SAID THAT THE MEETING WAS PRODUCTIVE BUT THAT IT HADN'T AGREED TO WITHDRAW THE PROPOSAL THE PROPOSAL WOULD REQUIRE THE COMPANY TO HAVE SEPARATE OFFICERS FOR THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE BOTH CURRENTLY HELD BY ANDREW SIGLER THE MEETING WAS UNUSUAL BECAUSE IT WAS INITIATED BY THE CHAMPION DIRECTORS RATHER THAN THE NEW YORK CITY PENSION FUND AS IS TYPICALLY THE CASE IN MEETINGS BETWEEN CORPORATE DIRECTORS OR MANAGEMENT AND SHAREHOLDER ACTIVISTS THE BEHINDTHESCENES NEGOTIATIONS BETWEEN CHAMPION AND ITS BIG SHAREHOLDERS ARE ANOTHER EXAMPLE OF THE GROWING POWER OF LARGE INVESTORS WHO HAVE PLAYED A MAJOR ROLE IN UPHEAVALS AT SOME OF THE NATION'S LARGEST COMPANIES IN RECENT WEEKS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP AMERICAN EXPRESS CORP AND WESTINGHOUSE ELECTRIC CORP THE EFFORT BY DIRECTORS OF CHAMPION TO MEET WITH SHAREHOLDERS IS PARTICULARLY NOTEWORTHY HOWEVER BECAUSE THE COMPANY HAS BEEN UNDER FIRE FROM SHAREHOLDER GROUPS FOR SEVERAL YEARS AS A RESULT OF ITS LAGGING STOCK PERFORMANCE THE COMPANY'S STOCK HAS HOVERED BETWEEN 20 AND 30 DURING MR SIGLER'S TENURE AS CHIEF EXECUTIVE AMONG OTHER THINGS SOME SHAREHOLDERS HAVE BEEN UNHAPPY BECAUSE THE STAMFORD CONN COMPANY HAS SPENT 4 BILLION ON MODERNIZING AND IMPROVING ITS PAPER MILLS DURING A DOWNTURN IN THE CYCLICAL PAPER BUSINESS IN YEARS PAST HOWEVER CHAMPION MADE FEW OVERTURES TO SHAREHOLDER GROUPS THE THREE DIRECTORS WHO MET WITH THE PENSION OFFICIALS WERE WALTER SHIPLEY PRESIDENT OF CHEMICAL BANKING CORP ELIZABETH MCCORMACK ASSOCIATE OF THE ROCKEFELLER FAMILY ASSOCIATION AND JOHN WEINBERG SENIOR CHAIRMAN GOLDMAN SACHS & CO A SPOKESMAN FOR CHAMPION SAID THE COMPANY ALSO MET LAST SUMMER WITH THE NEW YORK CITY PENSION FUND ALTHOUGH THAT MEETING WAS AT THE REQUEST OF PENSION FUND OFFICIALS THE CHAMPION SPOKESMAN SAID OUTSIDE DIRECTORS AND MANAGEMENT EACH MET SEPARATELY WITH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM SEVERAL WEEKS AGO CHAMPION AGREED TO SEVERAL REQUESTS OF THE HUGE CALIFORNIA PENSION FUND INCLUDING ONE FOR A STUDY THAT WOULD COMPARE THE COMPANY'S FINANCIAL PERFORMANCE WITH ITS PEERS' CHAMPION ALSO AGREED TO ACCEPT SUGGESTIONS FOR DIRECTORS FROM SHAREHOLDERS ACCORDING TO A SPOKESMAN FOR CALPERS 9302180067 930218 REVIEW & OUTLOOK EDITORIAL ASIDES BILL'S JOGGING TRACK PRESIDENT CLINTON IS GETTING HEAT FOR DECIDING TO KICK OFF THE REBUILD AMERICA CAMPAIGN IN HIS OWN BACKYARD REPORTERS NOTICED SOME INFRASTRUCTURELIKE DIGGING GOING ON AROUND THE WHITE HOUSE'S SOUTH GROUNDS AND WHITE HOUSE SOURCES CONFIRMED THAT THE PRESIDENT IS HAVING A QUARTERMILE JOGGING TRACK BUILT FOR HIS RUNS THOUGH BY THE END OF YESTERDAY THEY WERE SAYING IT WOULD BE PAID FOR WITH PRIVATE CONTRIBUTIONS UNLIKE THE CONTRIBUTIONS MR CLINTON IS ASKING OF US TAXPAYERS WELL YOU'RE NOT GOING TO FIND US COMPLAINING ABOUT A PRESIDENT TRYING TO HIT HIS TARGET HEART RATE FOUR OR FIVE TIMES A WEEK GEORGE BUSH OFTEN PLAYED GOLF ON A VIRTUAL DEAD RUN EVEN IN TEEMING RAIN STILL THIS IS AN ADMINISTRATION PREOCCUPIED WITH THE WELLKNOWN APPEARANCE STANDARD AND IF A PRESIDENT WHO EQUATES TAXES WITH PATRIOTISM FEELS FREE TO START A JOBS PROGRAM BEHIND HIS OWN HOUSE WHO WILL STOP BOBBY BYRD FROM PAVING OVER ALL OF WEST VIRGINIA WITH SIXLANE HIGHSPEED JOGGING TRACKS IF THE PRESIDENTIAL JOGGER IS GOING TO ASK THE MIDDLE CLASS TO PAY THE NEW TAXES HE PROPOSED LAST NIGHT WE SUGGEST THAT HE GET IN THE SPIRIT OF THE TIMES BY JOINING THEM ON A TREADMILL 9302180066 930218 BUSINESS BRIEF GITANO GROUP INC ACCESSORY NETWORK DIVISION IS SOLD IN 151 MILLION DEAL APPAREL MAKER GITANO GROUP INC SAID IT HAS COMPLETED THE SALE OF ITS ACCESSORY NETWORK DIVISION FOR 151 MILLION THE SALE WAS IN TWO SEPARATE TRANSACTIONS TO COMPANIES OWNED BY ACCESSORY NETWORK'S PRESIDENT ABE CHEHEBAR AND HIS BROTHER JOEY CHEHEBAR THE DIVISION'S VICE PRESIDENT GITANO BASED IN NEW YORK SAID THE SALE PRICE INCLUDES CASH FROM THE SALE RETAINED CASH AND COLLECTION OF THE DIVISION'S ACCOUNTS RECEIVABLE IN ADDITION LICENSING AGREEMENTS BETWEEN GITANO AND THE CHEHEBARS GUARANTEE MINIMUM SALES OF 212 MILLION OVER FIVE YEARS WHICH ARE EXPECTED TO GENERATE AN ADDITIONAL 105 MILLION IN LICENSING REVENUES FOR GITANO IN CONNECTION WITH COMPLETION OF THE SALE OF THE ACCESSORY NETWORK DIVISION GITANO SAID IT WILL RECORD A NONCASH CHARGE OF 159 MILLION FOR THE FOURTH QUARTER OF 1992 RELATED PRIMARILY TO GOODWILL WRITEDOWNS GITANO SAID IN A STATEMENT THAT THE SALE IS PART OF ITS PLANS TO STREAMLINE ITS OPERATIONS AND EMPHASIZE ITS LICENSING BUSINESS THE COMPANY HAS HAD A BUMPY PERFORMANCE SINCE IT WENT PUBLIC IN 1988 LAST YEAR IT REPORTED HUGE LOSSES UNDERWENT A RESTRUCTURING AND ANNOUNCED THAT IT WAS SEEKING TO RENEGOTIATE ITS DEBT 9302180065 930218 TECHNOLOGY BRIEF INTEL CORP AMERITECH BELL ATLANTIC SET PHONEGEAR VENTURE AMERITECH CORP AND BELL ATLANTIC CORP SIGNED SEPARATE AGREEMENTS WITH INTEL CORP TO DEVELOP DESKTOP VIDEO AND DATA CONFERENCING USING ORDINARY TELEPHONES AND PERSONAL COMPUTERS BOTH REGIONAL BELL COMPANIES WILL WORK WITH INTEL IN SANTA CLARA CALIF TO LINK PCS AND TELEPHONES USING STANDARD PHONE LINES AND LINES THAT HAVE BEEN UPGRADED WITH A DIGITAL TRANSMISSION TECHNOLOGY KNOWN AS INTEGRATED SERVICES DIGITAL NETWORK OR ISDN ISDN LINES CAN CARRY VOICE DATA AND VIDEO SIGNALS SIMULTANEOUSLY INTEL THE LEADING COMPUTER CHIP MAKER IS EXPECTED TO INTRODUCE PC ADDIN BOARDS AND SOFTWARE THIS YEAR FOR DATA CONFERENCING OVER REGULAR PHONE LINES AND FOR VIDEO CONFERENCING OVER ISDN LINES DATA CONFERENCING LETS PEOPLE IN DIFFERENT LOCATIONS WORK TOGETHER ON THE SAME DOCUMENT ON THEIR PC SCREENS VIDEO CONFERENCING WOULD LET USERS SEE EACH OTHER AND WORK ON THE SAME DOCUMENT ON THEIR PC SCREENS BELL ATLANTIC IN PHILADELPHIA AND AMERITECH IN CHICAGO HAVE BEEN UPDATING THEIR NETWORKS WITH ISDN TECHNOLOGY 9302180064 930218 BUSINESS BRIEF CALMAT CO DIVIDEND IS CUT AFTER LOSS IS POSTED FOR QUARTER YEAR CALMAT CO LOS ANGELES SAID ITS BOARD VOTED TO CUT ITS QUARTERLY DIVIDEND TO 10 CENTS FROM 16 CENTS THE CUT IS PART OF CALMAT'S EFFORT TO CONSERVE CASH FOLLOWING QUARTERLY AND YEARLY LOSSES LINKED TO ITS TROUBLED CONSTRUCTION MARKET THE PRODUCER OF CONCRETE AND CONSTRUCTION MATERIALS REPORTED A FOURTHQUARTER NET LOSS OF 8 MILLION OR 35 CENTS A SHARE ON SALES OF 82 MILLION THE RESULTS INCLUDED A ONETIME CHARGE OF 67 MILLION OR 29 CENTS A SHARE RELATED TO THE CONSOLIDATION OF CERTAIN CONSTRUCTION MATERIALS OPERATIONS A YEAR AGO CALMAT HAD FOURTHQUARTER NET INCOME OF 24 MILLION OR 10 CENTS A SHARE ON SALES OF 92 MILLION ROD HADFIELD CALMAT'S EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION SAID THE FOURTHQUARTER LOSSES CAUSED THE COMPANY TO FALL OUT OF COMPLIANCE WITH INTERESTRELATED COVENANTS IN ITS LOAN AGREEMENTS BUT SAID LENDERS HAD WAIVED COMPLIANCE THROUGH MARCH 30 WITH NO RESTRICTIONS OR LIMITATIONS ON BORROWING THE COMPANY IS NEGOTIATING PERMANENT AMENDMENTS TO THE LOAN AGREEMENTS 9302180063 930218 INTERNATIONAL BRIEF RHONEPOULENC SA NET CLIMBED 24 IN 1992 FIRM SEES GAIN THIS YEAR FRENCH STATECONTROLLED CONCERN RHONEPOULENC SA REPORTED THAT NET INCOME ROSE 24 TO 152 BILLION FRANCS 2756 MILLION IN 1992 BOOSTED BY ITS HEALTH AND SPECIALTY CHEMICALS BUSINESSES LOOKING AHEAD CHAIRMAN JEANRENE FOURTOU SAID RHONEPOULENC EXPECTS TO BE ABLE TO IMPROVE ITS PROFIT IN 1993 DESPITE A DREADFUL ECONOMIC CLIMATE AT THE BEGINNING OF THE YEAR HE ATTRIBUTED THIS EXPECTED PROGRESS MAINLY TO THE COMPANY'S HEALTH SECTOR WHICH WAS THE ENGINE FOR THE PROFIT INCREASE IN 1992 BUT HE ALSO CITED THE IMPROVEMENT IN THE VALUE OF THE US DOLLAR AGAINST THE FRANC AND BETTER PROSPECTS FOR THE US ECONOMY AT A NEWS CONFERENCE MR FOURTOU SAID HE COULDN'T PREDICT HOW MUCH PROFIT MIGHT IMPROVE THIS YEAR NOTING THAT THE CLIMATE FOR THE CHEMICAL INDUSTRY IS WORSE THAN DURING THE OIL SHOCKS 9302180062 930218 BUSINESS BRIEF SOUTHLAND CORP CONCERN EXPECTS CHARGES OF 29 MILLION FOR 4TH PERIOD SOUTHLAND CORP SAID IT EXPECTS TO RECORD FOURTHQUARTER NONRECURRING CHARGES OF ABOUT 29 MILLION RELATED TO BUSINESS RESTRUCTURING IN THE FOURTH QUARTER ENDED DEC 31 1991 THE DALLAS CONVENIENCE STORE OPERATOR HAD A NET LOSS OF 342 MILLION OR EIGHT CENTS A SHARE INCLUDING A 122 MILLION CHARGE RELATED TO A BANKRUPTCY SETTLEMENT REVENUE WAS 191 BILLION THE COMPANY SAID THE CHARGES IN THE LATEST FOURTH QUARTER INCLUDE AN ADDITIONAL 4 MILLION LOSS FROM THE SALE OF ITS DISTRIBUTION AND FOOD PROCESSING BUSINESS IN NOVEMBER AS WELL AS 25 MILLION RELATED TO STORE CLOSINGS AND DIVESTITURES IN 1992 OR PLANNED FOR 1993 DESPITE THE CHARGE THE COMPANY SAID ITS 7ELEVEN CONVENIENCE STORES HAVE BEEN ACHIEVING IMPROVED OPERATING RESULTS OVER THE LAST FOUR MONTHS 9302180061 930218 OBSERVING EARLY DAYS OF PRESIDENCY BRINGS BACK MEMORIES OF CARDIGANS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BEFORE CALLING ON AMERICANS TO SACRIFICE THE NEW DEMOCRATIC PRESIDENT BEGAN WITH STRONG SYMBOLIC NODS TO ETHICS AND FRUGALITY HE ISSUED RULES INTENDED TO SHUT THE REVOLVING DOOR TO ADMINISTRATION OFFICIALS HE ANNOUNCED HE WAS CUTTING THE WHITE HOUSE STAFF BY 33 AND REDUCING UNNECESSARY PERKS SUCH AS GOVERNMENT LIMOUSINES THE FORMER SOUTHERN GOVERNOR ALSO MADE PLAIN THAT HE WOULD KEEP IN TOUCH WITH AMERICANS OUTSIDE THE WASHINGTON BELTWAY BY HOLDING PERIODIC TOWN MEETINGS ACROSS THE COUNTRY TO BOOST AN IMPROVING BUT STILLSLUGGISH ECONOMY THE ADMINISTRATION PROPOSED A 31 BILLION STIMULUS PROGRAM AND THEN MARSHALING HIS POPULARITY THE PRESIDENT ASKED THE NATION AND DEMOCRATIC MAJORITIES IN CONGRESS TO SUPPORT AN ENERGY TAX AS PART OF A PROGRAM TO PROTECT OUR STRENGTH AND POWER AS A NATION THE PROGRAM WOULD SUCCEED HE PROMISED SOLEMNLY IF THE PEOPLE UNDERSTAND THE SERIOUSNESS OF THE CHALLENGE AND ARE WILLING TO MAKE SACRIFICES THE PRESIDENT WAS JIMMY CARTER IN 1977 UNVEILING HIS CONTROVERSIAL ENERGY PROGRAM THAT WAS ULTIMATELY WATERED DOWN IN CONGRESS AND WHILE THERE ARE IMPORTANT DIFFERENCES BETWEEN MR CARTER'S PREDICAMENT AND THE ONE BILL CLINTON NOW FACES THE PARALLELS UNDERSCORE HOW FRAGILE A NEW PRESIDENT'S PROSPECTS FOR SUCCESS CAN BE CARTER ADMINISTRATION VETERANS INSIST SUCH COMPARISONS MAY BE MISLEADING THE DIFFERENCES ARE MUCH MORE STRIKING SAYS JODY POWELL WHO WAS MR CARTER'S PRESS SECRETARY FOR ONE THING HE SAYS MR CARTER HAD TO SPEND PRECIOUS TIME CONVINCING AMERICANS THAT THERE WAS AN ENERGY PROBLEM REQUIRING SACRIFICE BY CONTRAST MR POWELL SAYS IT'S NOW CLEAR PEOPLE DO BELIEVE WE HAVE A BIG PROBLEM WITH THE ECONOMY AND THE DEFICIT MR CLINTON MAY HAVE AN EVEN MORE USEFUL ADVANTAGE MORE ACCUSTOMED TO DEMOCRATIC PRESIDENTS THEN PARTY MEMBERS IN CONGRESS FELT LITTLE RISK IN CITICIZING MR CARTER AS LIBERALS QUICKLY BEGAN TO DO NOW HAVING BEEN GRANTED CONTROL OF THE EXECUTIVE AND LEGISLATIVE BRANCHES BY A STILLWARY ELECTORATE MANY CONGRESSIONAL DEMOCRATS ARE ATTEMPTING TO STIFLE COMPLAINTS OUT OF RECOGNITION THAT THEIR OWN FATES MAY BE TIED TO MR CLINTON'S IF THEY DON'T CHANGE THEIR WAY OF LIVING MR POWELL WARNS FROM BITTER EXPERIENCE THEY MAY NOT BE LIVING IN WASHINGTON FOR VERY LONG 9302180060 930218 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY WILL ASK EASTERN EUROPEAN COUNTRIES TO LIMIT STEEL EXPORTS AND RAISE PRICES AS PART OF A THREEYEAR RESCUE PLAN FOR THE EC'S BLOATED AND UNPROFITABLE STEEL INDUSTRY THE EC COMMISSION AGREED ON THE PROPOSALS WHICH ALSO CALL FOR EC STEELMAKERS TO CUT PRODUCTION CAPACITY FAR MORE DEEPLY THAN THEY HAVE OFFERED IN RETURN THE EC WILL PROVIDE 240 MILLION EUROPEAN CURRENCY UNITS 2863 MILLION AS WELL AS 210 MILLION ECUS ALREADY COMMITTED TO HELP THE COMPANIES FOOT THE BILL FOR LAYING OFF ABOUT 50000 WORKERS EC GOVERNMENTS WILL BE ASKED TO MATCH THESE FUNDS MOREOVER THE COMMISSION WILL OVERSEE THE INDUSTRY RESTRUCTURING BY RECOMMENDING PRODUCTION LEVELS SOME EC COUNTRIES SUCH AS SPAIN MAY RESIST DEEP CUTS IN OUTPUT THE EC HOPES TO STAVE OFF A COLLAPSE OF THE MARKET THREATENED BY A FLOOD OF CHEAP EAST EUROPEAN STEEL THAT HAS DEPRESSED WESTERN PRICES TO LATE1970S LEVELS AMID A SEVERE ECONOMIC DOWNTURN EC STEELMAKERS WELCOMED THE PLANNED QUOTAS AND PRICE RESTRICTIONS BUT CRITICISM EMERGED FROM EAST EUROPE WHERE FORMER COMMUNIST STATES HAVE BEEN COUNTING ON WIDER ACCESS TO WESTERN MARKETS MAIL DELIVERIES IN PARIS WERE DISRUPTED AS POSTAL WORKERS BEGAN A STRIKE TO PROTEST PLANNED JOB CUTS THOUGH ALL 167 POST OFFICES IN THE FRENCH CAPITAL REMAINED OPEN THE POSTAL SERVICE SAID 45 OF ITS 19000 EMPLOYEES IN THE CITY JOINED THE STRIKE HALTING DELIVERIES IN THREE OF PARIS'S 20 DISTRICTS A COALITION OF FIVE UNIONS SAID BETWEEN 50 AND 80 OF THE WORKERS WALKED OUT OVER THE PLAN TO ELIMINATE 280 JOBS IN PARIS AND POSSIBLY 3000 NATIONWIDE THE STRIKE ALSO AFFECTED MAILSORTING CENTERS SIGNALING WIDER SERVICE UPSETS SLOVAKIA'S ECONOMICS MINISTRY INTENDS TO ALLOW SOME STATEOWNED COMPANIES TO BE LIQUIDATED WHICH COULD ALMOST DOUBLE UNEMPLOYMENT TO 20 THIS YEAR THE REPUBLIC WHICH BECAME INDEPENDENT JAN 1 SEEKS TO DEVELOP GLOBALLY COMPETITIVE INDUSTRIES THROUGH CAPITAL INVESTMENTS WITH FOREIGN PARTICIPATION TO RESTRUCTURE PRODUCTION AND BUILD INFRASTRUCTURE OVER FIVE YEARS SLOVAK INDUSTRY HAS LONG PRODUCED RAW MATERIALS AND SEMIFINISHED GOODS THAT WERE COMPLETED IN THE CZECH PART OF CZECHOSLOVAKIA SLOVAK INDUSTRIAL OUTPUT MAY DROP 10 THIS YEAR AFTER SLUMPING 14 LAST YEAR SINCE IT OPENED IN BEIJING SIX WEEKS AGO A PRIVATE DETECTIVE AGENCY TOUTED AS THE FIRST IN THE CHINESE CAPITAL WITH 95 MILLION PEOPLE HAS BEEN DOING BRISK BUSINESS WITH SEVEN STAFF MEMBERS A FEW CAMERAS AND A RENTED CAR THE BEIJING HANGONG CIVIL AFFAIRS INVESTIGATION OFFICE SPECIALIZES IN DOMESTIC AND FINANCIAL DISPUTES ITS FOUNDER SHI LIJUN SAID SOCIAL CHANGES GENERATED A NEED FOR PRIVATE EYES IN MATTERS THAT ELUDE POLICE LAST MONTH A MAN WHO SUSPECTED HIS WIFE WAS UNFAITHFUL HIRED THE AGENCY WHICH DISCOVERED SHE WAS ATTENDING NIGHT CLASSES RUSSIA'S WESTERN CREDITORS HAVE OFFERED TO HALVE ITS 1993 FOREIGN DEBT PAYMENT TO 64 BILLION WHICH STILL IS MORE THAN TWICE THE AMOUNT THE REPUBLIC WAS PREPARED TO PAY RUSSIA HAD APPEALED TO THE PARIS CLUB GOVERNMENTCREDITOR GROUP FOR REDUCED ANNUAL PAYMENTS ON FORMER SOVIET FOREIGN DEBT TOTALING AS MUCH AS 86 BILLION IT SET ASIDE ONLY 25 BILLION FOR THIS YEAR'S REQUIRED PAYMENT OF 13 BILLION RUSSIA SAID IT COULD MAKE THE 64 BILLION PAYMENT ONLY BY REDIRECTING OIL AND GAS EXPORTS FROM OTHER FORMER SOVIET REPUBLICS AND SELLING THEM FOR HARD CURRENCY OFFSETTING THE PURCHASE OF 436 FRENCH TANKS BY THE UNITED ARAB EMIRATES FRENCH FIRMS WILL REINVEST MORE THAN 2 BILLION IN THE PERSIAN GULF STATE THE UAE'S ORDER FROM GIAT INDUSTRIES IS VALUED AT AS MUCH AS 4 BILLION GIAT WILL REINVEST PART OF THE DEAL IN JOINT PROJECTS IN THE UAE TO BE DEVELOPED WITH FRENCH PARTNERS ARAB STATES HAVE BEEN BUILDING UP THEIR DEFENSES SINCE THE 1991 GULF WAR EXPOSED THEIR MILITARY WEAKNESS GERMANY'S CABINET APPROVED AND SENT TO PARLIAMENT A RAILWAY REFORM PLAN THAT IS LIKELY TO LEAD TO PRIVATIZATION OF THE UNPROFITABLE NETWORK AFTER THE YEAR 2002 WESTERN GERMANY'S DEUTSCHE BUNDESBAHN AND THE EASTERN REGION'S DEUTSCHE REICHSBAHN WOULD BE CONVERTED INTO A JOINTSTOCK COMPANY BAHN AG OWNED BY THE STATE BUT RUN ALONG COMMERCIAL LINES STARTING JAN 1 1994 IN ABOUT 1997 BAHN WOULD BE DIVIDED INTO THREE INDEPENDENT COMPANIES RESPONSIBLE FOR TRACK MAINTENANCE PASSENGER TRAFFIC AND FREIGHT GERMANY WANTS TO REDUCE THE FINANCIAL DRAIN OF ITS SUBSIDIES TO THE RAILWAYS WHICH HAVE TOTAL DEBT OF 70 BILLION MARKS 4299 BILLION THAT WOULD BE TAKEN OFF THE STATE'S BOOKS UNDER THE SELLOFF PLAN AND WITH RAIL IMPROVEMENTS LURING MORE PASSENGERS AND CARGO GERMANY HOPES TO UNCLOG THE COUNTRY'S HIGHWAYS FLU THIS SEASON HAS STRICKEN ABOUT 683500 JAPANESE CHILDREN UP MORE THAN FIVEFOLD FROM A YEAR EARLIER RIO DE JANEIRO'S CARNIVAL FOUR DAYS OF UNBRIDLED REVELRY EVERY YEAR IS BIG BUSINESS BUT WITH THE BRAZILIAN CITY'S TOURISM SAGGING BECAUSE OF POLLUTION AND CRIME THE FESTIVAL STARTING SATURDAY IS BEING PROMOTED AS A CLEANEDUP FAMILY AFFAIR SKEPTICS HOWEVER SAID CARNIVAL'S NAUGHTINESS IS ITS PERENNIAL ATTRACTION 9302180059 930218 MRS FIELDS LENDERS TO GET 79 OF STOCK UNDER RECAPITALIZATION PARK CITY UTAH MRS FIELDS INC SAID IT AGREED WITH FOUR LENDERS TO A RECAPITALIZATION PLAN THAT PUTS 79 OF THE COOKIE CONCERN'S STOCK IN THE LENDERS' HANDS BUT GIVES THE FOUNDER OPTIONS TO REGAIN A CONTROLLING INTEREST MRS FIELDS SAID THAT UNDER THE PLAN THE LENDERS WILL EXCHANGE DEBT ACCRUED INTEREST AND PREFERRED STOCK VALUED TOGETHER AT ABOUT 94 MILLION FOR NEW COMMON SHARES AND ABOUT 50 MILLION IN NEW SENIOR AND SUBORDINATED NOTES DEBBI FIELDS WHO FOUNDED THE COMPANY IN 1987 WILL REMAIN THE LARGEST INDIVIDUAL SHAREHOLDER WITH AN 84 INTEREST IN THE COMPANY SHE ALSO WILL RETAIN OPTIONS TO BUY AN ADDITIONAL 70 OF THE NEW COMMON STOCK MRS FIELDS WHICH OPERATED UNDER A HEAVY DEBT LOAD AS IT EXPANDED IN THE LATE 1980S AND EARLY 1990S EXPECTS THE RECAPITALIZATION TO HELP IT EXPAND FURTHER THE COOKIE COMPANY OWNS 400 STORES AND FRANCHISEES OWN 380 OTHERS THE COMPANY SAID IT PLANS TO OPEN 100 NEW STORES OVER THE NEXT 12 MONTHS DEBBI FIELDS IS NOW ACTING PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE A SPOKESWOMAN FOR THE COMPANY SAID IT HAS BEEN SEARCHING FOR A PERMANENT PRESIDENT AND CEO AND EXPECTS TO COMPLETE THE SEARCH SOON MRS FIELDS WILL RETAIN HER POSITION AS CHAIRMAN THE COMPANY WILL PUT THE PLAN BEFORE SHAREHOLDERS MARCH 3 AND IF THE PLAN IS APPROVED IT WILL TAKE ITS SHARES OUT OF TRADING ON THE LONDON STOCK EXCHANGE MAKING THE COMPANY A CLOSELY HELD FIRM WITH NO ACTIVE TRADING IN ITS STOCK 9302180058 930218 BUSINESS BRIEF MERCK & CO DRUG COMPANY IS PUTTING CALGON DIVISION UP FOR SALE MERCK & CO WHITEHOUSE STATION NJ SAID IT IS PUTTING ITS CALGON WATER MANAGEMENT DIVISION UP FOR SALE BECAUSE IT DOESN'T FIT ITS LONGTERM STRATEGIC PLAN TO FOCUS ON HEALTH CARE ABOUT 20 PROSPECTIVE BUYERS WILL BE CONTACTED A SPOKESMAN SAID AND MERCK HOPES TO HAVE A BUYER IDENTIFIED BY EARLY SUMMER MERCK IS WORKING WITH INVESTMENT BANK JP MORGAN SECURITIES IN THE CONTROLLED AUCTION THE SPOKESMAN SAID CALGON BASED IN PITTSBURGH HAS 1300 EMPLOYEES THE CALGON DIVISION HAS SALES OF 225 MILLION A YEAR AND HAS BEEN PROFITABLE THE SPOKESMAN SAID HEMANT SHAH AN INDEPENDENT ANALYST ESTIMATED THE DIVISION WOULD SELL FOR 200 MILLION TO 250 MILLION 9302180057 930218 EASTERN ASSOCIATED TO SHIP COAL AGAIN AMID LABOR DISPUTE CHARLESTON WVA AS ATTEMPTS TO RESTART COAL INDUSTRY CONTRACT TALKS FAILED A TARGET OF THE UNITED MINE WORKERS' STRIKE EASTERN ASSOCIATED COAL CORP SAID IT WILL BEGIN SHIPPING COAL AGAIN THE BITUMINOUS COAL OPERATORS ASSOCIATION SAID IT WAS WILLING TO INCLUDE NONUNION MINES IN DISCUSSIONS A MAJOR POINT OF CONTENTION FOR THE UMW BUT THE BCOA WOULDN'T AGREE TO AUTOMATICALLY GRANT UNION REPRESENTATION TO WORKERS IN THOSE MINES SAID ONE PERSON CLOSE TO THE COAL PRODUCER GROUP EFFORTS TO EXTEND THE LABOR CONTRACT WHICH EXPIRED FEB 1 AND RESUME TALKS ALSO HIT A SNAG WHEN THE UMW WOULDN'T PROMISE TO KEEP CONFIDENTIAL INFORMATION THE BCOA AGREED TO PROVIDE ABOUT NONUNION MINES THE PERSON SAID IN A STATEMENT THE UMW BLAMED THE BCOA SAYING IT ONCE AGAIN TURNED DOWN A PLAN THAT WOULD HAVE EXTENDED THE CONTRACT AND ALLOWED TALKS ON A NEW CONTRACT TO COMMENCE BUT THE UMW PROVIDED NO DETAILS AND OFFICIALS WEREN'T AVAILABLE FOR COMMENT MEANWHILE EASTERN SAID IT WILL START SHIPPING STOCKPILED COAL TODAY TO MEET ITS OBLIGATIONS UNDER CONTRACTS WITH CUSTOMERS EASTERN AND PEABODY COAL CO BOTH OWNED BY BRITISH CONCERN HANSON PLC'S PEABODY HOLDING CO IN ST LOUIS WERE HIT BY A STRIKE FEB 2 AFTER THE NATIONAL BITUMINOUS WAGE AGREEMENT EXPIRED SO FAR THE STRIKE WHICH THE UNION CONTENDS INVOLVES 7500 WORKERS BUT PEABODY SAYS INCLUDES 5000 HASN'T SPREAD TO OTHER BCOA MEMBERS 9302180056 930218 OTC FOCUS SMALL STOCKS ARE CONTINUING TO RETREAT BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER MONTHS AS THE DARLINGS OF INVESTORS OVERTHECOUNTER STOCKS ARE IN RETREAT THERE IS NO QUESTION THIS IS A CORRECTION IN THE OTC MARKET SAID CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST FOR MERRILL LYNCH BUT HE THINKS THE POWERFUL RALLY IN SMALL STOCKS THAT BEGAN IN DECEMBER 1990 IS FAR FROM OVER THE BULL MARKET FOR SMALL STOCKS WILL PROBABLY CONTINUE FOR SEVERAL MORE YEARS SUFFERING OCCASIONAL PULLBACKS SUCH AS THIS ONE MR CLOUGH SAID THE NASDAQ COMPOSITE INDEX YESTERDAY FELL ANOTHER 596 POINTS OR 090 TO 65943 THE NASDAQ INDEX HAS NOW FALLEN 7 FROM ITS ALLTIME HIGH OF 70885 REACHED ON FEB 4 DECLINING STOCKS OUTNUMBERED ADVANCERS 1728 TO 1031 TOTAL VOLUME WAS 2755 MILLION SHARES DOWN FROM TUESDAY'S 3037 MILLION SHARES MANY MARKET ANALYSTS SAY THE NASDAQ MARKET WHICH HAD SURGED NEARLY 23 FROM THE BEGINNING OF OCTOBER HAS BEEN DUE FOR A MAJOR PULLBACK THEY NOTE THAT LAST YEAR THE NASDAQ MARKET REACHED A TOP IN FEBRUARY FELL AND THEN LANGUISHED FOR EIGHT MONTHS PETER CANELO CHIEF MARKET STRATEGIST AT COUNTY NATWEST THINKS THE LATEST SMALLSTOCK CORRECTION COULD LAST TWO TO THREE MONTHS BUT PROBABLY WON'T BE AS SEVERE AS LAST YEAR'S HE THINKS THE SELLING COULD TAKE THE NASDAQ INDEX DOWN ANOTHER 6 WHICH WOULD PUT THE OTC BENCHMARK AT ABOUT 620 PRESIDENT CLINTON'S NATIONALLY TELEVISED ADDRESS MONDAY NIGHT WHICH OUTLINED HIS PLAN FOR HIGHER TAXES HAS HELPED TO FUEL PROFITTAKING IN SMALL STOCKS SAID BYRON WIEN MARKET STRATEGIST AT MORGAN STANLEY THE OTC MARKET WAS DUE FOR A CONSOLIDATION AND CLINTON'S TAX PROPOSALS BASICALLY SET THE CORRECTION IN MOTION HE SAID THE DECLINE IN SMALL STOCKS SLOWED FROM TUESDAY'S SHARP DROP WHEN THE NASDAQ INDEX PLUNGED 2515 POINTS OR 36 BUT BIOTECHNOLOGY AND HEALTHCARE STOCKS CONTINUED TO TUMBLE FUELED BY FEARS ABOUT PRESIDENT CLINTON'S COST CONTAINMENT PLANS FOR THE HEALTHCARE INDUSTRY SYNERGEN TOPPLED 3 1/4 TO 45 AMGEN DROPPED 1 5/8 TO 48 1/4 AND US HEALTHCARE SLIPPED 1 TO 44 3/4 IT SEEMS LIKE A HEALTHY CORRECTION AND MOST OF THE SELLING ISN'T TOO PANICKED EXCEPT FOR SOME OF THE HEALTHCARE AND BIOTECH STOCKS SAID GREG RILEY A SENIOR OTC TRADER AT FIRST BOSTON MR RILEY SAID THE MARKET STARTED TO BOUNCE BACK A LITTLE LATE YESTERDAY AFTERNOON WITH INTEL RISING 2 5/8 TO 108 1/2 AND MICROSOFT EDGING UP 1/8 TO 80 1/4 ON TUESDAY INTEL PLUNGED 5 1/8 AND MICROSOFT TUMBLED 3 1/2 ROBERT O'TOOLE HEAD OF OTC TRADING AT SHEARSON LEHMAN BROTHERS SAID INVESTORS WERE ALL WAITING FOR MR CLINTON'S EVENING SPEECH OUTLINING HIS ECONOMIC PLANS THERE IS A LOT OF CASH OUT THERE AND THERE IS A CHANCE BUYERS COULD TAKE ADVANTAGE OF SOME BARGAINS AND COME BACK INTO THE MARKET IN FACT GEORGE CONSTANTINE A SENIOR TECHNICAL ANALYST WITH MERRILL LYNCH SAID THE OTC MARKET WON'T JUST GO STRAIGHT DOWN THE MARKET COULD BOUNCE BACK A LITTLE BEFORE THE NASDAQ INDEX SETTLES SOME PLACE IN THE 630 OR 640 LEVEL HE SAID THE BEST BUYING OPPORTUNITIES WILL PROBABLY COME IN THE NEXT MONTH OR TWO THE RECENT SETBACK IN THE NASDAQ MARKET COULD ALSO SLOW THE PACE OF INITIAL PUBLIC OFFERINGS SAYS KATHY SMITH A NEW ISSUES ANALYST WITH RENAISSANCE CAPITAL CORP IN GREENWICH CONN THIS ENVIRONMENT MAKES IT HARD TO GET DEALS DONE SHE SAID IF THE SELLOFF CONTINUES WE ARE GOING TO SEE DEALS POSTPONED WE'VE HAD A LOT OF GOOD COMPANIES ON THE NEW ISSUES CALENDAR AND SOME OF THE RISKIER COMPANIES HAVE ALREADY HAD DIFFICULTY IN A VERY UNUSUAL MOVE WILT CHAMBERLAIN'S RESTAURANTS ANNOUNCED A WITHDRAWAL OF ITS INITIAL PUBLIC OFFERING ON TUESDAY JUST BEFORE THE SHARES WERE TO BE DELIVERED TO INVESTORS INVESTORS SAID THE IPO IN THE RESTAURANT NAMED AFTER THE LEGENDARY BASKETBALL PLAYER WAS ONE OF THE MOST SPECULATIVE OFFERINGS THIS MONTH WILT CHAMBERLAIN'S FAILURE ANALYSTS SAID IS AN EXAMPLE OF THE FRENZY IN THE IPO MARKET DESPITE YESTERDAY'S DOWNTURN WATSON PHARMACEUTICALS DID MANAGE TO PRICE 36 MILLION SHARES AT 12 APIECE THE CORONA CALIFBASED MANUFACTURER OF OFFPATENT MEDICATIONS AND DRUG DELIVERY SYSTEMS PRICED ITS OFFERING AT THE TOP OF ITS RANGE OF 10 TO 12 THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED THREE MILLION SHARES THROUGH LEAD UNDERWRITER BEAR STEARNS & CO THE STOCK CLOSED AT 14 1/4 ELSEWHERE SATELLITE TECHNOLOGY SLIPPED 2 1/8 TO 10 1/4 THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 18 CENTS A SHARE DOWN FROM 24 CENTS A SHARE A YEAR EARLIER THE COSTA MESA CALIF COMPANY MAKES SATELLITE COMMUNICATION NETWORKS HEALTHCARE COMPARE JUMPED 1 1/2 TO 18 THE DOWNERS GROVE ILL COMPANY REPORTED FOURTHQUARTER EARNINGS OF 24 CENTS A SHARE UP FROM 17 CENTS A SHARE A YEAR EARLIER HEALTHCARE COMPARE PROVIDES COST MANAGEMENT SERVICES WALBRO CORP SANK 2 TO 31 1/2 THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 26 CENTS A SHARE DOWN FROM 30 CENTS A SHARE A YEAR AGO ON A FULLY DILUTED BASIS THE COMPANY EARNED 25 CENTS A SHARE COMPARED WITH 28 CENTS A SHARE FOR THE SAME PERIOD LAST YEAR THE CASS CITY MICH COMPANY MANUFACTURES FUEL DELIVERY AND STORAGE SUBSYSTEMS FOR APPLICATION ON AUTOMOTIVE ELECTRONIC FUEL INJECTION SYSTEMS NOT BULLISH ON STEAK EVER BULLISH WALL STREET STOCK ANALYSTS ARE CONSTANTLY GENERATING STOCKBUYING IDEAS FOR INVESTORS ESPECIALLY WHEN THEY PICK UP RESEARCH COVERAGE OF THE COMPANY FOR THE FIRST TIME BUT YESTERDAY SALOMON BROTHERS ANALYST DONALD ZWYER INITIATED COVERAGE OF HIGHFLYING OUTBACK STEAKHOUSE INC WITH AN UNDERPERFORM RATING SOME COULD VIEW MR ZWYER'S REPORT AS A SHORTSELLING RECOMMENDATION WHERE INVESTORS SELL BORROWED STOCK IN A BET THAT A COMPANY'S STOCK PRICE WILL DECLINE MR ZWYER THINKS OUTBACK WHICH CLOSED YESTERDAY DOWN 2 1/2 TO 24 1/4 COULD FALL TO AS LOW AS 10 FOR A SHORT THAT WOULD BE A MOUTHWATERING 587 GAIN FROM YESTERDAY'S CLOSE MR ZWYER SAYS HIS CLIENTS AREN'T SHORTSELLERS WE'RE REALLY LOOKING TO TELL CLIENTS WHO HAVE BIG PROFITS IN THE STOCK TO TAKE THEM HE SAYS OUTBACK A TAMPABASED RESTAURANT CHAIN WAS TAKEN PUBLIC BY ALEX BROWN & SONS IN JUNE 1991 AT A SPLITADJUSTED 5 A SHARE INITIAL BUYERS HAVE ASTOUNDING PROFITS PROTECT THEM AND GET OUT NOW MR ZWYER URGES OTHER ANALYSTS ARE LOOKING FOR EARNINGS OF 77 CENTS A SHARE IN 1993 AND AROUND A 110 IN 1994 MR ZWYER IS SKEPTICAL HE IS LOOKING FOR 70 CENTS THIS YEAR AND 1 A SHARE NEXT YEAR PINCHING OUTBACK'S EARNINGS GROWTH WILL BE HIGHER FOOD AND WAGE COSTS MR ZWYER PREDICTS HE EXPECTS COMPETING RESTAURANT CHAINS SUCH AS SIZZLER TO PRICE AGGRESSIVELY TO LURE AWAY OUTBACK CUSTOMERS AND HE EXPECTS SAME STORE SALES GROWTH TO SLOW AND THE RATE OF NEW STORE OPENINGS TO ALSO SLOW HE SAYS THE STOCK'S VALUATION IS EXTREMELY HIGH BASED ON THESE PREDICTIONS ROBERT MERRITT OUTBACK'S CHIEF FINANCIAL OFFICER DISAGREES HE SAYS THE CHAIN CONTRACTS FOR MEAT AND EXPECTS PRICES TO STAY AT 1992 LEVELS HE EXPECTS NO LABOR INCREASES GROWTH WE'RE GOING TO GROW 50 TO 60 NEW RESTAURANTS THIS YEAR ON A BASE OF 85 I DON'T KNOW THAT THAT'S A DRAMATIC SLOWDOWN HE SAYS MR MERRITT ADDS IT IS EXTREMELY UNUSUAL FOR AN ANALYST TO INITIATE COVERAGE WITH A SELL ONE SHORT SELLER OF THE REDHOT RESTAURANT STOCKS COULDN'T AGREE MORE ONLY HE CALLS SUCH A RECOMMENDATION REFRESHING 9302180055 930218 WEDNESDAY'S MARKETS STOCKS STABILIZE AFTER SELLOFF BONDS ADVANCE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES STABILIZED IN THE WAKE OF TUESDAY'S SELLOFF ENDING MIXED IN HEAVY TRADING BOND PRICES ROSE BUT THE DOLLAR SLIPPED THE DOW JONES INDUSTRIAL AVERAGE GAINED 270 POINTS TO 331219 BUT STANDARD & POOR'S 500STOCK INDEX SLIPPED 061 TO 43330 THE RETREAT IN SMALL STOCK PRICES CONTINUED WITH THE NASDAQ COMPOSITE INDEX TUMBLING 596 TO 65943 BRINGING ITS LOSS FOR THE PAST TWO DAYS TO 45 INVESTORS BRACED FOR MORE DETAILS ON PRESIDENT CLINTON'S ECONOMIC PLAN AFTER BEING FRIGHTENED BY HIS EMPHASIS EARLIER THIS WEEK ON HIGHER TAXES TO REDUCE THE US BUDGET DEFICIT STOCK PRICES PLUNGED TUESDAY ON FEARS THAT HIGHER TAXES WILL CHOKE OFF THE BUDDING ECONOMIC RECOVERY STEVEN EINHORN A STOCK MARKET STRATEGIST AT GOLDMAN SACHS SAID MR CLINTON'S ECONOMIC PLAN HAS PUT A CAP ON POSSIBLE STOCK MARKET GAINS FOR THE NEXT FEW MONTHS BUT MR EINHORN ALSO SAID HE EXPECTS POSITIVE ECONOMIC AND STOCK MARKET FUNDAMENTALS TO LIMIT ANY LOSSES IN THE STOCK MARKET WHILE STOCKS PROBABLY WILL HOLD THEIR OWN MR EINHORN SAID BOND PRICES ARE POISED FOR GREATER GAINS ON TUESDAY MR EINHORN TOLD CLIENTS TO BOOST THEIR BOND HOLDINGS TO 40 FROM 25 BELIEVING THAT BOND YIELDS COULD FALL TO AS LOW AS 675 EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE SAID HE THINKS THE FEDERAL RESERVE MAY BE WILLING TO CUT INTEREST RATES FURTHER TO OFFSET THE NEGATIVE EFFECT OF HIGHER TAXES ON ECONOMIC GROWTH IF THE PRESIDENT STICKS TO HIS TOUGH DEFICITREDUCTION PACKAGE AND CONGRESS APPROVES IT WORLDWIDE STOCK PRICES WERE FLAT THE DOW JONES WORLD STOCK INDEX WAS UNCHANGED AT 9355 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME ON THE NEW YORK STOCK EXCHANGE TOTALED 2872 MILLION SHARES DECLINERS ON THE BIG BOARD WERE AHEAD OF GAINERS 1151 TO 783 BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/2 POINT OR ALMOST 5 FOR EACH 1000 FACE AMOUNT TO YIELD 710 THE DOLLAR EASED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16253 MARKS AND 11965 YEN COMPARED WITH 16285 MARKS AND 11993 YEN TUESDAY 9302180054 930218 BUSINESS BRIEF NATIONAL HEALTH LABORATORIES INC SETTLEMENT RESULTS IN LOSS OF 506 MILLION IN 4TH PERIOD NATIONAL HEALTH LABORATORIES INC LA JOLLA CALIF POSTED A 506 MILLION FOURTHQUARTER LOSS AFTER TAKING A 136 MILLION PRETAX CHARGE FOR RECENT GOVERNMENT SETTLEMENTS OF HEALTHCARE FRAUD CHARGES IN DECEMBER THE MEDICAL LABORATORY CONCERN AGREED TO PAY MORE THAN 110 MILLION TO SETTLE GOVERNMENT CLAIMS INVOLVING CLINICAL TESTING PROCEDURES FOR THE FEDERAL MEDICARE PROGRAM AND FOR VARIOUS STATE MEDICAID PROGRAMS THE FOURTHQUARTER LOSS WAS EQUAL TO 53 CENTS A SHARE EXCLUDING THE CHARGE INCOME WAS 297 MILLION OR 32 CENTS A SHARE NATIONAL HEALTH LABS SAID IN THE YEAREARLIER QUARTER NATIONAL HEALTH LABS POSTED NET INCOME OF 268 MILLION OR 27 CENTS A SHARE SALES IN THE 1992 QUARTER ROSE 17 TO 1803 MILLION FROM 1543 MILLION FOR THE FULL YEAR NET FELL 61 TO 406 MILLION OR 43 CENTS A SHARE FROM 1039 MILLION OR 105 A SHARE EXCLUDING THE CHARGE 1992 NET INCOME WAS 1209 MILLION OR 128 A SHARE SALES ROSE 19 TO 7214 MILLION FROM 6039 MILLION 9302180053 930218 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ACCORDING TO THE INDUSTRY USERS WILL BE ABLE TO ORGANIZE THEIR LIVES AND COMMUNICATE WITH THE WORLD JUST BY WRITING ON THE SCREENS OF THEIR SMALL RELATIVELY INEXPENSIVE PDAS BUT THE QUESTION IS ARE SUCH DEVICES ONLY NEAT DEMONSTRATIONS OF NEW TECHNOLOGY OR DO THEY PROVIDE USEFUL BENEFITS TO CONSUMERS AT A REASONABLE PRICE AND ARE THEY SUPERIOR TO CURRENT PORTABLE COMPUTERS PENANDPAPER ALTERNATIVES OR OTHER LITTLE DEVICES LIKE THE SHARP WIZARD AND SIMILAR POCKET ORGANIZERS AS PDAS BECOME AVAILABLE I PLAN TO TRY THEM OUT AND REPORT ON EACH HERE BUT GIVEN ALL THE INDUSTRY HYPE ABOUT THE PRODUCTS IT MAKES SENSE NOW TO STEP BACK AND TAKE A BASIC LOOK AT WHAT THEY ARE AND AREN'T WHO IS BUILDING THEM AND WHAT CONSUMERS CAN EXPECT FROM THEM THESE GADGETS ALSO CALLED PERSONAL COMMUNICATORS OR PERSONAL INFORMATION PROCESSORS DEPENDING ON WHICH COMPANY YOU TALK TO ARE REAL ONE BY A SMALL COMPANY CALLED EO IN MOUNTAIN VIEW CALIF IS ALREADY BEING SHIPPED IN LIMITED FASHION TO SELECTED CORPORATE CUSTOMERS IT COSTS 2000 TO 4000 AND WILL BE SOLD LATER THIS YEAR BY AMERICAN TELEPHONE & TELEGRAPH A PARTNER IN EO UNDER AT&T'S NAME AT ITS TELEPHONE STORES APPLE COMPUTER PROMISES TO SHIP A PDA CALLED NEWTON THIS SUMMER FOR WELL UNDER 1000 BASED ON NEW TECHNOLOGY THAT LETS THE MACHINE MAKE DECISIONS ABOUT CARRYING OUT TASKS IT IS ASKED TO DO A THIRD PDA CODENAMED ZOOMER IS BEING JOINTLY DEVELOPED BY TANDY AND JAPAN'S CASIO COMPUTER FOR SALE AT ABOUT 500 PROBABLY IN THE FALL AND INDUSTRY OFFICIALS SAY MICROSOFT THE SOFTWARE GIANT IS WORKING WITH A HARDWARE COMPANY TO BUILD A PDA BASED ON A SLIMMEDDOWN VERSION OF ITS WINDOWS PROGRAM IN GENERAL THE INDUSTRY IS PROMISING THAT THE PDA A TERM COINED BY APPLE WILL LET YOU MAINTAIN YOUR CALENDAR AND ADDRESS LIST ON THE ROAD USING A SPECIAL PEN THAT WRITES DIRECTLY ON THE SCREEN OF THE LITTLE GIZMO NOT A KEYBOARD USING THAT SAME PEN YOU'LL BE ABLE TO COMPOSE FAXES AND ELECTRONICMAIL MESSAGES AND THEN TRANSMIT THEM DIRECTLY TO ANYONE IN YOUR ADDRESS LIST IN SOME CASES USING WIRELESS COMMUNICATIONS THAT ELIMINATE THE NEED TO PLUG THE MACHINE INTO A TELEPHONE JACK YOU WILL ALSO BE ABLE TO TAP INFORMATION SUCH AS REFERENCE MATERIALS AND MAPS THAT IS EITHER STORED IN YOUR PDA OR DOWNLOADED FROM ONLINE DATABASE SERVICES ON SOME OF THE DEVICES YOU'LL ALSO BE ABLE TO RUN TRADITIONAL COMPUTER APPLICATION PROGRAMS SUCH AS SPREADSHEETS AND BUDGET SOFTWARE THAT HAVE BEEN TAILORED FOR THE PENBASED PDAS BUT AS IS THE CASE WITH ALL NEW COMPUTERS THE FIRST PDA MODELS ARE LIKELY TO FALL SHORT OF THE BUILDUP NONE OF THE THREE ANNOUNCED MACHINES WILL COME OUT OF THE BOX WITH THE ABILITY TO TRANSLATE LARGE VOLUMES OF HANDWRITING FLAWLESSLY OR THE NECESSARY EQUIPMENT TO SEND AND RECEIVE DATA WIRELESSLY AND IF YOU WANT FULL COMMUNICATIONS ABILITY NONE WILL COST AS LITTLE AS THEIR BASE PRICES SUGGEST EO'S DEVICE IS AN EVOLUTIONARY ADVANCE BEYOND CURRENT PENBASED PORTABLE COMPUTERS IT IS MUCH LIGHTER AND FASTER THAN CURRENT PENBASED MACHINES WITH A SPECIAL EMPHASIS ON INTEGRATING COMMUNICATIONS ABILITY BUT IT IS TOO BIG TO FIT IN A POCKET AND PRICEY THE BASE 2000 MODEL DOESN'T INCLUDE A MODEM WIRELESS CAPABILITY IS 799 EXTRA THE TANDYCASIO MACHINE IS ALSO EVOLUTIONARY A MUCHIMPROVED ELECTRONIC ORGANIZER THAT DOES AWAY WITH THOSE DEVICES' CRAMPED KEYBOARDS BUT ITS BASE PRICE PROBABLY WON'T INCLUDE A MODEM AND IT SEEMS TO EMPHASIZE ORGANIZING INFORMATION MORE THAN COMMUNICATING IT THE EO AND TANDYCASIO MACHINES BOTH CAN TRANSLATE HANDWRITING INTO ONSCREEN TEXT BUT NEITHER STRESSES HANDWRITING RECOGNITION WHICH IS FAR FROM PERFECTED AS A CENTRAL OR NECESSARY FUNCTION INSTEAD THEY FOCUS ON STORING SCRAWLED NOTATIONS BOTH AIM TO BE EASIER TO USE THAN TODAY'S COMPUTERS BUT BOTH ARE STILL BUILT ON TRADITIONAL COMPUTER CONCEPTS THEY USE VERSIONS OF EXISTING OPERATINGSYSTEM SOFTWARE THAT RUN SEPARATE APPLICATION PROGRAMS TO CARRY OUT SPECIFIC TASKS BY CONTRAST APPLE'S NEWTON AIMS TO BE A MUCH BIGGER BREAK WITH CURRENT PCS BASED ON A NEW OPERATING SYSTEM UNRELATED TO APPLE'S MACINTOSH IT RELIES HEAVILY ON HANDWRITING RECOGNITION AND STRIVES TO BE A BLANK ELECTRONIC NOTEPAD THAT WILL CARRY OUT ORDERS USERS ENTER VIA PEN WITHOUT REQUIRING THEM TO CONSCIOUSLY RUN PROGRAMS IN A DEMONSTRATION A USER WRITES FAX TO BOB ON THE NEWTON SCREEN AND THE MACHINE LOOKS UP BOB IN ITS DATABASE DIALS HIS FAX NUMBER AND TRANSMITS WHATEVER INFORMATION HAS BEEN WRITTEN ON THE SCREEN IF NEWTON WORKS IT WILL BE IN A CLASS BY ITSELF BUT TO MAKE IT WORK APPLE MUST COME THROUGH WITH A BIG ADVANCE IN HANDWRITING RECOGNITION AND THERE ARE OTHER DOWNSIDES EVEN NEWTON WON'T BE DESIGNED TO TRANSLATE LARGE VOLUMES OF HANDWRITING FEW IF ANY NEWTON APPLICATION PROGRAMS WILL BE AVAILABLE FROM ANYBODY OTHER THAN APPLE AT LEAST INITIALLY AND LIKE ITS COMPETITORS NEWTON ISN'T LIKELY TO OFFER A MODEM IN ITS BASE PRICE 500 TO 1000 EVEN IN THEIR FIRST VERSIONS THESE MACHINES WILL BE INTERESTING AND USEFUL FOR MANY PEOPLE AND MORE CAPABLE MODELS OF EACH ARE ALREADY BEING DEVELOPED BUT AS ALWAYS WITH COMPUTERS PUBLICITY ABOUT PDAS THREATENS TO OUTRUN REALITY 9302180052 930218 MARKETING BRIEF NOTED NEWSPAPERS MINNEAPOLIS'S STAR TRIBUNE WILL TEST A FREE WEEKLY BROADSHEET IN THE SOUTHERN SUBURBS OF MINNEAPOLIS AND ST PAUL IN MARCH THE COWLES MEDIA CO NEWSPAPER SAID THE PUBLICATION WILL CARRY PRIMARILY ENTERTAINMENT AND HEALTH PIECES AND IS DESIGNED AS A WAY FOR ADVERTISERS TO REACH NONSUBSCRIBERS OF THE STAR TRIBUNE 9302180051 930218 WORLD MARKETS TOKYO LONDON PRICES FINISH MIXED AS WARINESS OF US ECONOMIC PLAN PINCHES BOURSES GLOBALLY A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES ENDED MIXED WEDNESDAY THOUGH THE MAIN INDEX SQUEAKED OUT A LATE RISE AFTER AN EARLY BRUISING FROM WALL STREET'S PLUNGE A DAY EARLIER AND THE YEN'S TUMBLE LONDON STOCKS WERE MIXED IN TORPID TRADING AS WARY INVESTORS KEPT AN EYE ON THE BATTERED NEW YORK MARKET FROM THE SIDELINES IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 20167 POINTS TUESDAY ROSE 9331 TO 1700963 ON THURSDAY THE NIKKEI ROSE 7766 POINTS TO END THE MORNING SESSION AT 1708729 THE NIKKEI INDEX MOVED BETWEEN 1676081 AND 1701485 WEDNESDAY AND ALL OF ITS GAINS CAME IN THE FINAL 10 MINUTES OF TRADING ON A FUTURES RALLY THAT PROMPTED BOTH ARBITRAGE BUYING AND COVERING OF SHORT OR OVERSOLD POSITIONS IN STOCKS THE LASTMINUTE BUYING IN INDEX FUTURES APPARENTLY CAME FROM PUBLIC PENSION FUNDS OR OTHERS INTERESTED IN PROPPING UP SHARE PRICES PARTICIPANTS SAID THE NIKKEI HAD STAGGERED IN THE MORNING SESSION FOLLOWING THE BIGGEST POINT DROP 8294 OR 24 FOR THE DOW JONES INDUSTRIAL AVERAGE IN NEW YORK SINCE NOV 15 1991 THE YEN'S STRENGTH ALSO CONTINUED TO DOG JAPANESE EXPORTERS AND DAMPEN THE OVERALL MOOD IN THE TOKYO MARKET DEALERS AND PUBLIC FUNDS WERE AMONG THE MAIN BUYERS AND INVESTMENT TRUSTS LED THE SELLING IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 18 POINTS TO 28140 THE FT 30STOCK INDEX ADDED 43 POINTS TO 21756 VOLUME WAS 6186 MILLION SHARES COMPARED WITH 6343 MILLION SHARES A DAY EARLIER TRADING GOT OFF TO A GLOOMY START AS LONDON INVESTORS WEIGHED THE POISONOUS SUGGESTION FROM THE US MARKET RETREAT THAT PRESIDENT CLINTON'S AUSTERITY PLAN COULD SHORTCIRCUIT ECONOMIC RECOVERY LONDON SHARES DID GET A SHORTLIVED BOOST FROM THE RELEASE OF STRONGERTHANEXPECTED BRITISH RETAIL SALES DATA FOR JANUARY BUT BRITISH CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT SEIZED ON THAT GOOD NEWS TO REITERATE THAT HE DIDN'T FORESEE ANY FURTHER CUTS IN BRITAIN'S BASE LENDING RATES FROM THE CURRENT 6 BY THE AFTERNOON TRADING INTEREST EVAPORATED AS INVESTORS BEGAN TO FOCUS ANEW ON WHAT MR CLINTON WOULD SAY IN HIS WEDNESDAY NIGHT SPEECH TO CONGRESS AND AWAITED TODAY'S RELEASE OF BRITISH UNEMPLOYMENT DATA IN FRANKFURT SHARE PRICES CLOSED ONLY MODERATELY LOWER IN REACTION TO TUESDAY'S SHARP DROP ON WALL STREET THE DAX 30STOCK INDEX FELL 1096 POINTS TO 165326 DECLINING ISSUES IN THE INDEX OUTNUMBERED ADVANCING ISSUES 245 THE PERFORMANCE WAS VIEWED POSITIVELY GIVEN THE US MARKET'S PLUNGE GERMAN AND FOREIGN FUNDS BOUGHT AT LOWER OPENING LEVELS BUT PARTICIPANTS FEARED THAT IF WALL STREET SANK FURTHER THIS COULD TRIGGER A SHORTTERM SELLOFF IN FRANKFURT IN PARIS A FLURRY OF FUTURESRELATED BUYING IN LATE TRADING HELPED STOCKS CLOSE NEAR THE DAY'S BEST LEVELS AND RECOVER FROM LOWS A SERIOUS BUYING MOOD EMERGED IN MIDAFTERNOON WHEN WALL STREET SEEMED TO BE STEADYING AFTER TUESDAY'S DIVE PARIS PARTICIPANTS ALSO WERE ENCOURAGED BY SIGNS THAT GERMANY'S CENTRAL BANK MIGHT RELAX ITS GRIP ON CREDIT ELSEWHERE IN EUROPE AMSTERDAM EQUITIES FELL SLIGHTLY THOUGH THEY RECOVERED FROM INTRADAY LOWS IN A SESSION THAT LEFT MANY INVESTORS SIDELINED IN ANTICIPATION OF PRESIDENT CLINTON'S FORMAL PRESENTATION OF HIS ECONOMIC PLAN IN MILAN STOCKS ENDED WITH LOSSES AFTER BOUNCING UP FROM GREATER LOWS ON A LATE ROUND OF BUYING MADRID SHARES DROPPED AS THE MARKET WAS CONCERNED ABOUT THE WEAKNESS OF THE SPANISH PESETA AND WASN'T CHEERED BY THE CUT IN MARGINAL YIELDS AT THE SPANISH TREASURY'S AUCTION OF BILLS STOCKHOLM PRICES DROPPED IN LINE WITH THE TREND ON OTHER MAJOR MARKETS ZURICH SHARES DECLINED BROADLY MAINLY BECAUSE OF CONTINUED DISAPPOINTMENT ABOUT PRESIDENT CLINTON'S TELEVISED PEP TALK MONDAY ON THE NEED TO RAISE TAXES BRUSSELS SHARES ALSO FELL ON JITTERS ABOUT THE EFFECT OF THE CLINTON PROPOSALS SYDNEY SHARE PRICES DECLINED THOUGH THEY HELD REASONABLY FIRM FOLLOWING WALL STREET'S DAYEARLIER PLUNGE AS RECENT BULLISH SENTIMENT IN THE AUSTRALIAN MARKET PREVAILED HONG KONG STOCKS POSTED THEIR EIGHTH CONSECUTIVE GAIN BOOSTED BY ADDITIONAL SIGNS THAT SINOBRITISH RELATIONS WERE WARMING IN THE DISPUTE ABOUT THE TERRITORY'S FUTURE GOVERNANCE SINGAPORE SHARES EVEN AFTER RECOVERING SLIGHTLY IN LATE TRADING CLOSED SHARPLY LOWER ON CONCERNS ABOUT WALL STREET'S TUESDAY RETREAT TAIPEI PRICES BUCKED THE ASIANPACIFIC TREND RISING IN HECTIC TRADING ON THE CLINTON PLAN TO STIMULATE THE US ECONOMY SEOUL STOCKS PLUNGED BROADLY AS BEARISH SENTIMENT CONTINUED BECAUSE OF WORSENING MARKET FUNDAMENTALS MARKED BY CONTINUED DRAINING OF CASH FROM THE MARKET WELLINGTON EQUITIES FELL SHARPLY ON ACTIVE VOLUME AS SENTIMENT WEAKENED SUBSTANTIALLY BECAUSE OF WALL STREET'S LOSSES AMONG CORPORATE DEVELOPMENTS IN TOKYO CANON ROSE 10 YEN TO 1370 YEN 1142 THE MAKER OF CAMERAS COPYING MACHINES AND COMPUTER PERIPHERALS REPORTED THAT 1992 UNCONSOLIDATED PRETAX PROFIT EDGED UP 13 TO 7713 BILLION YEN 643 MILLION FROM A YEAR EARLIER BECAUSE OF THE COMPANY'S ACTIONS TO GUARD AGAINST CURRENCY FLUCTUATIONS CANON SAID ITS BUSINESS ENVIRONMENT SHOULD REMAIN SEVERE THIS YEAR AMID INCREASING COMPETITION AND THE YEN'S CONTINUED STRENGTHENING IN FOREIGNEXCHANGE MARKETS FOR 1993 CANON EXPECTS UNCONSOLIDATED PRETAX PROFIT TO RISE JUST 05 TO 775 BILLION YEN IN FRANKFURT DEGUSSA SURGED 2850 MARKS OR 79 TO 35850 MARKS 22015 THE CHEMICAL AND METAL COMPANY'S GROUP PRETAX PROFIT THE FIRST QUARTER ENDED DEC 31 CLIMBED 14 TO 49 MILLION MARKS 301 MILLION DEGUSSA CITED A RESTRUCTURING NOW IN ITS THIRD YEAR THAT STRENGTHENED THE COMPANY'S RESISTANCE TO THE ECONOMIC DOWNTURN 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 9302180050 930218 BUSINESS BRIEF ELAN ENERGY INC FIRM AGREES TO ACQUIRE UNIT OF OMV GRUPPE OF AUSTRIA ELAN ENERGY INC SAID IT AGREED IN PRINCIPLE TO BUY OMV CANADA LTD FROM OMV GRUPPE OF AUSTRIA FOR 180 MILLION CANADIAN DOLLARS US1432 MILLION ELAN SAID THE ACQUISITION HAD IT BEEN MADE EARLIER WOULD HAVE INCREASED ITS 1992 OIL PRODUCTION BY ABOUT 54 TO 21626 BARRELS A DAY AND TRIPLED ITS NATURAL GAS OUTPUT TO 21 MILLION CUBIC FEET A DAY CALGARY ALBERTABASED ELAN SAID ITS TOTAL COST WILL BE ABOUT C153 MILLION BECAUSE OMV CANADA IS DEBT FREE AND BRINGS WITH IT C27 MILLION OF WORKING CAPITAL IT SAID IT PLANS TO ISSUE ABOUT C100 MILLION OF EQUITY AND C50 MILLION OF DEBT TO FINANCE THE TRANSACTION ELAN DESCRIBED OMV GRUPPE AS A GROUP OF OIL GAS AND CHEMICAL COMPANIES ELAN AND OMV CANADA ARE OIL AND GAS PRODUCING COMPANIES 9302180049 930218 BUSINESS BRIEF LTV CORP DISCLOSURE STATEMENT WINS BANKRUPTCY COURT APPROVAL A FEDERAL BANKRUPTCY COURT JUDGE IN NEW YORK APPROVED LTV CORP'S DISCLOSURE STATEMENT CLEARING THE WAY FOR THE COMPANY TO BEGIN SOLICITING CREDITORS' VOTES ON ITS REORGANIZATION PLAN A SPOKESMAN SAID LTV SHOULD BEGIN THE SOLICITATION NEXT MONTH THE CLEVELAND STEELMAKER HAS SAID ALL OF THE CREDITOR COMMITTEES INFORMALLY BACK THE PLAN A CONFIRMATION HEARING WAS SET FOR MAY 26 THE PLAN INCLUDES A 200 MILLION INVESTMENT IN LTV BY JAPAN'S SUMITOMO METAL INDUSTRIES LTD THE INVESTMENT WILL BE MADE UP OF 100 MILLION IN CONVERTIBLE PREFERRED STOCK AND 100 MILLION IN SENIOR SECURED CONVERTIBLE NOTES ALSO BETWEEN 73 MILLION AND 76 MILLION COMMON SHARES WILL BE ISSUED AT 1542 TO 1911 EACH UNSECURED CREDITORS WILL GET 50 MILLION OF THOSE SHARES HOLDERS OF CURRENT COMMON AND PREFERRED STOCK WILL GET WARRANTS VALUED AT 5 MILLION TO BUY NEW COMMON SHARES OVER FIVE YEARS THE PRICE WILL BE SET SIX MONTHS AFTER THE REORGANIZATION SECURED CREDITORS WILL GET 100 OF THEIR ALLOWED CLAIMS IN CASH 9302180048 930218 BUSINESS BRIEF ADIENCE INC PREPACKAGED PLAN TO BE FILED FOR BANKRUPTCY PROTECTION ADIENCE INC SAID IT WILL FILE A PREPACKAGED CHAPTER 11 BANKRUPTCY PLAN TO RESTRUCTURE ITS DEBT LOAD THE PLAN INVOLVES HAVING HOLDERS OF 66 MILLION OF THE PITTSBURGH COMPANY'S 15 SENIOR SUBORDINATED RESET NOTES EXCHANGE THEM FOR 45 MILLION OF NEW 11 NOTES AND COMMON STOCK REPRESENTING 55 OF ADIENCE'S EQUITY ADIENCE MAKES REFRACTOR DEVICES FOR THE METALS AND GLASS INDUSTRIES AND OWNS 80 OF INFORMATION DISPLAY TECHNOLOGY INC WHICH MAKES WRITING AND PROJECTION SURFACES INFORMATION DISPLAY WHICH ISN'T PART OF THE BANKRUPTCY FILING SAID HERBERT T KERR RETIRED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND IS SUCCEEDED BY WILLIAM B JACKSON FIVE OTHER BOARD MEMBERS RESIGNED GEORGE ROCHE BARRY RIDINGS THOMAS FAUGHT WILLARD BELLOWS AND PHILIP SMITH THE BOARD SEATS WERE REDUCED TO FIVE FROM SEVEN AND NEW MEMBERS INCLUDE JAMES B UPCHURCH OF LIBRA INVESTMENTS INC AND A STANLEY WEST OF CLEVELAND CLIFFS IRON CO COMPANY OFFICIALS WEREN'T AVAILABLE TO PROVIDE FURTHER DETAILS 9302180047 930218 BUSINESS BRIEF DONNA KARAN NEW YORK CONCERN IS REPORTED TO SEEK UNDERWRITER TO GO PUBLIC DONNA KARAN NEW YORK ONE OF SEVENTH AVENUE'S HOTTEST FASHION HOUSES IS SHOPPING AROUND WALL STREET FOR AN UNDERWRITER TO TAKE THE COMPANY PUBLIC A SPOKESWOMAN FOR THE NEW YORK COMPANY DECLINED COMMENT BUT PEOPLE FAMILIAR WITH THE PLAN SAID OFFICIALS AT DONNA KARAN HAVE BEEN HOLDING TALKS WITH SEVERAL BROKERAGE FIRMS IN RECENT WEEKS AMONG THEM IS MORGAN STANLEY & CO WHICH WAS THE LEAD UNDERWRITER FOR SEVERAL RECENT INITIAL PUBLIC OFFERINGS IN THE APPAREL INDUSTRY INCLUDING TOMMY HILFIGER INC WARNACO GROUP AND BURLINGTON INDUSTRIES A SPOKESWOMAN FOR MORGAN STANLEY DECLINED TO COMMENT DONNA KARAN NEW YORK BEGAN IN 1985 AS A MAKER OF HIGHEND WOMEN'S APPAREL DESIGNED BY DONNA KARAN WHO SERVES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY THE COMPANY IS 50OWNED BY MS KARAN AND HER HUSBAND STEPHAN WEISS AND 50OWNED BY OWNED BY TAKIHYO LTD A TOKYO HOLDING COMPANY THAT OWNS ANNE KLEIN ANOTHER SEVENTH AVENUE FASHION HOUSE WHERE MS KARAN WORKED AS A DESIGNER FROM 1974 TO 1984 CLAIMING 1992 SALES OF ABOUT 275 MILLION DONNA KARAN NEW YORK HAS BEEN EXPANDING RAPIDLY IN THE PAST YEAR HAVING ADDED MENSWEAR CHILDREN'S WEAR LINGERIE AND FRAGRANCE DIVISIONS IN THE LAST YEAR 9302180046 930218 CLINTON'S ECONOMIC PLAN BIG JOBS PLAN AIMS TO BOOST ECONOMY IN '93 BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF EVERYTHING WORKS ACCORDING TO PLAN PRESIDENT CLINTON'S ECONOMIC PACKAGE WILL GIVE THE RECOVERY AN EXTRA PUSH THIS YEAR THROUGH A BIG JOBS PROGRAM AND WILL HELP SUSTAIN GROWTH LATER BY REDUCING THE COUNTRY'S HUGE BUDGET DEFICIT AND ENCOURAGING INVESTMENT BUT ANALYSTS SAY THE PLAN MAY NOT PLAY OUT THAT WAY BY SLAPPING NEARLY 245 BILLION IN NET NEW TAXES ONTO INDIVIDUALS AND BUSINESSES OVER THE NEXT SIX YEARS THE PLAN RISKS SLOWING DOWN THE ECONOMY ONCE IT BEGINS SHOWING HEALTHY GROWTH SOME ANALYSTS WORRY ABOUT EVEN MORE DIRE PROSPECTS CLINTON IS HEIGHTENING THE RISK OF RENEWED RECESSION BY RAISING PERSONAL INCOME TAX RATES WARNS MORGAN STANLEY CO CHIEF ECONOMIST STEPHEN ROACH IT COULD UNNERVE CONSUMER CONFIDENCE AND MAKE AMERICANS THROW IN THE TOWEL BUT PRESIDENT CLINTON'S ECONOMIC TEAM DOESN'T THINK SO THE RECOVERY ISN'T AS STRONG AS WE'D LIKE IT BUT IT HAS GAINED MOMENTUM AND THE THOUGHT IS THE ECONOMY CAN ABSORB THESE TAXES AND CONTINUE TO GROW SAYS COUNCIL OF ECONOMIC ADVISORS CHAIRWOMAN LAURA TYSON THE PROPOSED NEW TAXES HIT THE RICHEST AMERICANS THE HARDEST BUT THE AVERAGE WORKING JOE OR JANE ISN'T SPARED COMPLETELY INDEED EVERY FAMILY EARNING MORE THAN 30000 A YEAR WOULD PAY AT LEAST SOMEWHAT HIGHER TAXES UNDER THE PLAN I DON'T KNOW OF ANY ECONOMIC MODEL THAT SAYS YOU CAN TAX YOUR WAY TO PROSPERITY SAYS LOWELL GALLAWAY PROFESSOR OF ECONOMICS AT OHIO UNIVERSITY THAT'S A PRETTY BIG RISK TO TAKE PART OF THE GAMBLE INVOLVES INTEREST RATES IF THE FINANCIAL COMMUNITY BELIEVES THE PLAN HAS A GOOD CHANCE OF SIGNIFICANTLY REDUCING THE FEDERAL DEFICIT LONGTERM INTEREST RATES SHOULD DROP WHICH WOULD BE A BOON FOR SMALL BUSINESSES HOMEOWNERS AND OTHERS IN ADDITION THE PLAN'S ARCHITECTS ARE BETTING THAT BY THE TIME THE NEW TAXES HIT IN EARLY 1994 THE ECONOMY WILL HAVE ENOUGH MOMENTUM TO WITHSTAND THE SLOWING EFFECT OF HIGHER TAXES AFTER THE BUSH ADMINISTRATION BROKE ITS NONEWTAX PLEDGE IN 1990 THE HIGHER TAXES KICKED IN THE FOLLOWING YEAR WHEN THE ECONOMY WAS ALREADY SLOWING DOWN THE CLINTON TAX INCREASES MAY BE BETTERTIMED IN WHAT MANY ECONOMISTS READ AS A FIRM SIGN THAT THINGS WERE FINALLY PICKING UP THE ECONOMY SHOWED A 38 ANNUAL GROWTH RATE IN THE FOURTH QUARTER LAST YEAR INDUSTRIAL PRODUCTION AND FACTORY ORDERS ARE UP HELPING TO LEAD THE MANUFACTURING SECTOR OUT OF THE DOLDRUMS OF LAST SUMMER AND CONSUMERS WHO REPRESENT ROUGHLY TWOTHIRDS OF ECONOMIC ACTIVITY FINALLY SEEM READY TO SPEND A LITTLE MORE CASH IN ADDITION THE ADMINISTRATION SAYS THE STIMULUS PART OF THE PACKAGE COULD CREATE 500000 JOBS THROUGH INCREASED GOVERNMENT SPENDING AND TAX INCENTIVES THAT WOULD ADDRESS ONE OF THE SHORTCOMINGS OF THE ECONOMIC RECOVERY THUS FAR NEGLIGIBLE JOB GROWTH IF THE PLAN IS APPROVED A LOT MORE MONEY WILL BE SPENT ON BUILDING AND RENEWING HIGHWAYS AND BRIDGES INFRASTRUCTURE SPENDING CHURNS OUT A LOT OF JOBS PER DOLLAR SAYS DAVID WYSS ECONOMIST FOR DRI MCGRAW HILL WE EXPECT THAT THE INFRASTRUCTURE IMPROVEMENTS CAN CREATE OVER FOUR YEARS OVER 150000 JOBS WE ALSO EXPECT THAT THE BULK OF THE JOBS WILL BE CREATED BY THE PRIVATESECTOR TAX INCENTIVES LIKE THE INVESTMENT TAX CREDIT SAYS CLINTON SPOKESMAN GEORGE STEPHANOPOULOS OVER THE NEXT FOUR YEARS THE CLINTON TEAM ESTIMATES THE PROGRAM WILL GENERATE EIGHT MILLION NEW JOBS BUT FORMER BUSH ECONOMIC ADVISER MICHAEL BOSKIN ISN'T CONVINCED JOBS ARE GOING TO BE CREATED AS THE PRIVATE ECONOMY GROWS HE ARGUES IF THE PLAN PASSES CLINTON MAY TAKE CREDIT FOR THIS JOB GROWTH BUT THERE IS VERY LITTLE IN THIS PACKAGE THAT WILL GENERATE NEW JOBS ONE REASON SOME ANALYSTS SAY IS THAT THE ECONOMY HAS FUNDAMENTALLY CHANGED BUSINESSES ARE MORE INTERESTED IN PRODUCTIVITY GAINS IN ORDER TO REMAIN COMPETITIVE THAN THEY ARE IN ADDING NEW WORKERS TAX INCENTIVES AREN'T GOING TO OPEN THE FLOOD GATES TO HIRING AGAIN SAYS MORGAN STANLEY'S MR ROACH BUSINESSES ARE NOT GOING TO SET BACK THE PROGRESS THEY'VE MADE IN PRODUCTIVITY THE CLINTON PLAN ALSO ASSUMES THAT THE FEDERAL RESERVE WON'T RAISE INTEREST RATES IN RESPONSE TO THE STIMULUS PART OF THE PACKAGE THERE IS NO CONFLICT BETWEEN FISCAL AND MONETARY POLICY THE FED AGREES THAT THE ECONOMY IS MOVING SLOWLY SAYS ROBERT ULIN SENIOR CONSULTANT FOR EICKHOFF ECONOMICS IF INFLATION HEATS UP HOWEVER THE FED IS LIKELY TO INCREASE INTEREST RATES A SHRINKING DEFICIT WOULD TAKE THE PRESSURE OFF INTEREST RATES BUT NOT NECESSARILY RIGHT AWAY A PLAN THAT REDUCES THE DEFICIT GRADUALLY OVER TIME MAY NOT BE FAST ENOUGH FOR BONDMARKET PARTICIPANTS SAYS CHEMICAL SECURITIES INC ECONOMIST SALLY KLEINMAN THAT COULD MEAN LONGTERM RATES AREN'T GOING TO FALL MUCH 9302180045 930218 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO ARCHITECTS SKETCH A COMEBACK REPLETE WITH NEW PROJECTS AND HIRES THE BELEAGUERED PROFESSION IS SLOWLY CLIMBING OUT OF ITS SLUMP ACCORDING TO AN AMERICAN INSTITUTE OF ARCHITECTS SURVEY FEBRUARY DATA SHOW THAT 30 OF 300 FIRMS HAVE HIRED NEW ARCHITECTS SINCE THE LAST SURVEY IN MAY WHEN 24 REPORTED NEW HIRING ONLY 18 HAD MADE LAYOFFS DOWN FROM 25 IN MAY AMONG FIRMS WITH 20 OR MORE ARCHITECTS 58 REPORT NEW HIRES COMPARED WITH 33 IN MAY THOSE THAT CUT STAFF FELL TO 16 FROM 35 SLIGHTLY MORE FIRMS OR 46 VS 44 REPORT A RISE IN PROJECTS SINCE MAY A BIG SURPRISE COMMERCIAL BUILDINGS SUCH AS STORES WERE SECOND AFTER EDUCATIONAL FACILITIES AS THE HOT AREAS FOR WORK HEALTHCARERELATED BUILDINGS WERE NO 3 JAMES CRAMER OF AIA SAYS THAT WHILE THE WORK MAY CONSIST OF STUDIES AND CONSTRUCTION ISN'T CERTAIN IT'S A GOOD SIGN THAT CLIENTS ARE AGAIN GOING TO ARCHITECTS FOR IDEAS THE LARGEST NUMBER OF FIRMS WITH NEW HIRES WERE IN NEW ENGLAND THE RUST BELT STATES AND THE MIDSOUTH FIRSTTIME BUYERS FEARFUL OF LOSING OUT STOKE THE HOUSING MARKET'S REVIVAL NEOPHYTE HOUSE HUNTERS ARE BENT ON BUYING CERTAIN THE MARKET HAS HIT BOTTOM THEY'RE COMING IN AND SAYING WE WANT A HOUSE IN FOUR WEEKS' SAYS MIKE NASISSI A FORT LEE NJ REALTOR SOME ADDS MARY FAHEY IN WATERTOWN MASS FEAR THEY MISSED A CHANCE IN LAST YEAR'S WEAK MARKET CAUTION STILL RULES SOME FIRSTTIMERS ARE GOING FOR LESS THAN THEY CAN AFFORD SAYS ALICE NEECE OF METUCHEN NJ SOME COUPLES MAKE SURE PAYMENTS CAN BE MET ON ONE SALARY MEANWHILE COMPETING OFFERS ON HOMES A RARE OCCURRENCE LAST YEAR ARE BECOMING COMMON MARY SNIDER AN EVANSTON ILL BROKER SAYS A CLIENT RECENTLY WAS ONE OF EIGHT BIDDERS FOR A 269000 FOURBEDROOM HOME IN WILMETTE THE WINNING BID TOPPED THE ASKING PRICE IN DARIEN CONN RECENT FIRSTTIME BUYERS ARE WALL STREETERS EMBOLDENED BY GENEROUS YEAREND BONUSES SAYS KELLY ASSOCIATES SHOPPER SCANNERS RETAILERS TEST NEW AIDS FOR REFINING CUSTOMER SERVICE SAKS FIFTH AVENUE VARIED CLERICAL LUNCH HOURS AT ITS BERGEN COUNTY NJ STORE AFTER SHOPPERTRAK A RADARLIKE SYSTEM THAT COUNTS TRAFFIC SHOWED A SHOPPER SURGE BETWEEN 11 AM AND 3 PM WE KNEW WE WERE BUSIER BUT DIDN'T KNOW HOW MUCH SAYS SAKS'S PHIL JOHNSON PIER ONE IMPORTS USES THE SAME SYSTEM TO TEST AMONG OTHER THINGS THE IMPACT OF NEWSPAPER ADS ON TRAFFIC IT HAS SHOPPERTRAK IN SEVEN STORES AND PLANS TO INSTALL IT IN 150 BY MARCH 1994 RETAILERS SAY THAT BY COMBINING TRAFFIC AND SALES DATA THEY CAN FIND OUT HOW WELL A STORE CONVERTS BROWSERS TO BUYERS THIS IS THE MISSING LINK SAYS PIER ONE'S CHARLES ZUPSIC KMART CORP IS EIGHT WEEKS AWAY FROM COMPLETING A STUDY USING SHOPPERTRAK TO RAPIDLY DEPLOY STAFF IN CHECKOUT LINES TO MEET A SUDDEN SURGE IN SHOPPERS KMART HAS THE SYSTEM IN FOUR STORES ANOTHER SYSTEM VIDEOCART USES INFRARED SIGNALS TO TRACE A SHOPPING CART'S PATH IN A STORE SCHNUCKS MARKET INC ST LOUIS USES VIDEOCART TO ASSESS STORE LAYOUTS LET'S QUASH THE RUMORS EXHORTS THE DEAN OF NEW YORK UNIVERSITY'S STERN SCHOOL OF BUSINESS RICHARD WEST TAKES TO THE SCHOOL MAGAZINE TO REFUTE A STUBBORN RUMOR THAT STERN PLANS TO SHUT DOWN ITS PARTTIME MBA PROGRAM HE TRACES THE REPORTS TO THE MID'80S WHEN THE PROGRAM WAS CUT TO 2000 STUDENTS FROM 3000 BLUE AND SEETHROUGH NEW PRODUCT NEWS PUTS GENERAL FOODS' JELLO BERRY BLUE AND PEPSICOLA'S CRYSTAL PEPSI AMONG THE 25 BEST INTRODUCTIONS OF 1992 FIGURING THEY WILL SPAWN OTHER CLEAR AND INDIGO PRODUCTS ANOTHER OFFBEAT ENTRY ALPO DAIRY CAT DRINK A LOWLACTOSE MILK FOR TABBIES WITH WEAK TUMMIES TO SCRIPT A MARKETING PLAN FOR COLLEGEAGE AUDIENCES THE THEATRE DEVELOPMENT FUND IN NEW YORK ENLISTS MARKETING CLASSES AT COLUMBIA BUSINESS SCHOOL PACE UNIVERSITY AND ST JOHN'S UNIVERSITY BROADWAY WORRIES THAT THE SHARE OF THE NEW YORK THEATER AUDIENCE 35 AND UNDER FELL TO 30 IN 1990 FROM JUST OVER 50 IN 1980 ORDERS PICK UP STEAM FOR SOME HEAVY CAPITAL GOODS LITTON INDUSTRIES INC BEVERLY HILLS CALIF HAS SEEN A RECENT RISE IN ORDERS FROM CUSTOMERS RANGING FROM FOOD FIRMS AND AIRLINES TO COMPUTER COMPANIES ORDERS FOR LITTON'S MATERIALSHANDLING GROUP WHICH HAD RECORD BOOKINGS IN THE OCTOBER QUARTER ARE EXPECTED IN THE FIRST HALF TO SURPASS ALL OF LAST YEAR'S INGERSOLLRAND CO WOODCLIFF LAKE NJ REPORTS RISING SALES OF COMPRESSORS WITH HIGHERPRICED UNITS SHOWING MORE GROWTH THAN SMALLER ONES MICHAEL MONTGOMERY OF DATA RESOURCES INC SAYS INDUSTRIAL EQUIPMENT RATHER THAN COMPUTERS AND TRANSPORT MACHINES RECENTLY HAS BEEN ACCOUNTING FOR A GREATER SHARE OF CAPITALGOODS ORDERS IN DECEMBER PLANT MACHINERY ORDERS JUMPED 129 IT'S MANUFACTURING KICKING IN HE SAYS BUT STONE & WEBSTER INC A BUILDER OF POWER PLANTS AND REFINERIES COMPLAINS THAT BIGTICKET ORDERS STILL ARE BEING DEFERRED INDUSTRIAL MACHINERY PRICES ROSE 135 IN THE 1992 SECOND HALF SAYS KEMPER NATIONAL INSURANCE COS BRIEFS NABISCO FOODS GROUP AND OCEAN SPRAY CRANBERRIES INC PLAN A COSTUMED WEDDING TO ROLL OUT CRANBERRY NEWTONS COOKIES THAT'S HOMEWORK EBERHARD FABER INC SAYS IT TOOK A YEAR TO MAKE ITS ECOWRITER PENCIL MADE OF RECYCLED PAPER EASIER TO SHARPEN 9302180044 930218 BUSINESS BRIEF INFORMIX CORP LAWSUIT SETTLEMENT TO RESULT IN CHARGE FOR FOURTH PERIOD INFORMIX CORP SAID IT AGREED TO SETTLE A SECURITIES LAWSUIT FILED AGAINST IT AND CERTAIN OF ITS OFFICERS IN 1988 ADDING THAT IT WILL TAKE A 105 MILLION PRETAX CHARGE AGAINST ITS PREVIOUSLY ANNOUNCED FOURTHQUARTER RESULTS FOR THE EXPECTED COSTS OF THE SETTLEMENT THE AGREEMENT IN PRINCIPLE TO SETTLE THE CLASS ACTION CALLS FOR THE MENLO PARK CALIF COMPANY TO CONTRIBUTE 84 MILLION AND ITS INSURANCE CARRIER TO CONTRIBUTE 2 MILLION TO A FUND FOR THE PLAINTIFFS INFORMIX SAID THE CHARGE WILL REDUCE 1992 FOURTHQUARTER NET INCOME TO 152 MILLION OR 46 CENTS A SHARE FROM 222 MILLION OR 67 CENTS A SHARE THE SOFTWARE CONCERN SAID INFORMIX SAID THE SETTLEMENT WILL END THE SUIT BUT DOESN'T CONSTITUTE AN ADMISSION OF LIABILITY OR WRONGDOING THE SUIT ACCUSED CERTAIN INFORMIX OFFICERS AND DIRECTORS OF ILLEGAL INSIDER TRADING IN THE COMPANY'S STOCK AND OF MAKING MISLEADING STATEMENTS CONCERNING THE COMPANY'S PERFORMANCE IN REPORTS TO STOCKHOLDERS 9302180043 930218 CLINTON'S ECONOMIC PACKAGE IN CORPORATE SUITES AND WELLTENDED SUBURBS TAX PROPOSAL IS CALLED UNFAIR BAD FOR ECONOMY BY RANDALL SMITH AND EARL C GOTTSCHALK JR STAFF REPORTERS OF THE WALL STREET JOURNAL AFTER REAPING THE FRUITS OF A DECADE OF REAGANOMICS HIGHINCOME AMERICANS SUDDENLY FIND THEMSELVES STARING DOWN THE BARREL OF A TAX INCREASE AIMED DIRECTLY AT THEM NOT SURPRISINGLY MANY DON'T LIKE IT IT'S NOT FAIR TO TAX THE PEOPLE WHO HAVE WORKED THE HARDEST AND DISTINGUISHED THEMSELVES GRUMBLES TOM COLLINS THE 49YEAROLD OWNER OF A MOBILE HOME DEALERSHIP IN ATHENS GA WHO SAYS PRESIDENT CLINTON'S PLAN WOULD INCREASE HIS TAXES IN WEALTHY SUBURBAN WESTPORT CONN MARY JANE JARVIS 60 WHO MANAGES HER FAMILY'S INVESTMENTS SAYS I'M JUST JUMPING UP AND DOWN I'M SO ANGRY A LOT OF PEOPLE I KNOW ARE TOO THIS CUTS ACROSS GENERATION AND PARTY LINES IT'S THE TOPIC DU JOUR IN WESTPORT IT'S JUST A HORROR AS A CANDIDATE BILL CLINTON HAD ALREADY VOWED TO BOOST THE TOP INCOME TAX RATE TO 36 FROM 31 FOR THOSE EARNING OVER 200000 A YEAR PLUS A 10 SURCHARGE FOR THOSE EARNING OVER 1 MILLION THIS WEEK AS PRESIDENT MR CLINTON UPPED THE ANTE DRASTICALLY PROPOSING THAT THE 36 RATE APPLY TO THOSE WITH TAXABLE INCOMES AS LOW AS 140000 AND THE 10 SURCHARGE FOR AN EFFECTIVE RATE OF 396 TO TAXABLE INCOMES OF JUST 250000 THAT ANGERS MR COLLINS THE GEORGIA MOBILE HOME DEALER THE ADMINISTRATION IS SAYING IF YOU DO DISTINGUISH YOURSELF WE ARE GOING TO PENALIZE YOU HE SAYS MR COLLINS THINKS HIGHER TAXES ON THE WEALTHY WILL BE VERY NEGATIVE FOR THE ECONOMY RICH PEOPLE HIRE PEOPLE HE SAYS POOR PEOPLE DON'T EMPLOY PEOPLE REDISTRIBUTION OF WEALTH ISN'T IN THE BEST INTERESTS OF THE ECONOMY THE WHOLE THING REMINDS MR COLLINS OF THE RUSSIAN REVOLUTION AND THAT'S WHAT SCARES ME WESTPORT'S MS JARVIS BELIEVES PRESIDENT CLINTON SHOULD HAVE ANNOUNCED SERIOUS CUTS IN GOVERNMENT SPENDING FIRST AND THEN COME TO THE PUBLIC ASKING FOR SACRIFICE NOW WHO IS GOING TO SACRIFICE BY PAYING HIGHER TAXES WITHOUT KNOWING IF IT WILL DO ANY GOOD THE LACK OF DEEP GOVERNMENT SPENDING CUTS ALSO TROUBLES NEW YORK INVESTMENT BANKER WILLIAM BENEDETTO CHAIRMAN OF BENEDETTO GARTLAND & GREENE INC A DEMOCRAT WHO VOTED FOR MR CLINTON IN LOBBYING FOR ITS PROPOSED PACKAGE OF TAX INCREASES THE WHITE HOUSE HAS ARGUED THAT 70 WILL BE BORNE BY THE 44 OF AMERICANS WHO EARN MORE THAN 100000 BUT MR BENEDETTO BELIEVES THE PRESIDENT IS GOING TO BE SURPRISED ABOUT THE NUMBER OF MIDDLECLASS PEOPLE WHO ARE EITHER MAKING 100000 OR HAVE ASPIRATIONS TO DO SO WHO ARE GOING TO VIEW THIS AS A SIGNIFICANT TAX INCREASE PARTLY BECAUSE HE BELIEVES THE CLINTON TAX PLAN WILL SLOW DOWN THE ECONOMY MR BENEDETTO SAYS HE IS DEFERRING HIS PLANNED PURCHASE OF A NEW LINCOLN CONTINENTAL AND WILL INSTEAD CONTINUE DRIVING HIS SEVENYEAROLD MERCEDES PERSONALLY MR BENEDETTO WOULD BE HAPPY TO PAY HIGHER TAXES IF HE THOUGHT THE MONEY WOULD REALLY REDUCE THE FEDERAL BUDGET DEFICIT BUT IF THIS IS JUST TO RAISE MY TAXES AND ONLY CUT DEFENSE SPENDING AND THE NET MONEY IS JUST GOING TO DISAPPEAR INTO AN ENORMOUS BLACK HOLE OF POLITICAL SPENDING IT'S GOING TO HURT THE ENTIRE WORLD HE SAYS SOME OTHER HIGHINCOME PEOPLE AGREE THAT IT ISN'T JUST THE EXTRA MONEY IT'S THE PRINCIPLE OF THE WHOLE THING LAWRENCE KUDLOW CHIEF ECONOMIST AT THE WALL STREET SECURITIES FIRM BEAR STEARNS & CO WHO SERVED IN THE REAGAN WHITE HOUSE AND MAKES MORE THAN 250000 SAYS SURE I'M GOING TO GET WHACKED BUT WHAT TROUBLES ME MORE THAN THE DOLLARS WAS THE TONE OF THE CLINTON SPEECH ON MONDAY IN A PERSONAL SENSE I WAS ASKING MYSELF WHY IS PRESIDENT CLINTON PICKING A CLASSWARFARE FIGHT WITH PEOPLE WHO ARE ACHIEVERS AND WHO SUCCEED IN BUSINESS' I WAS OFFENDED AND DEMORALIZED BY THE CLASSWARFARE HOSTILITY MR KUDLOW WHO APPEARS IN A TELEVISION COMMERCIAL FOR CADILLAC CARS A SYMBOL OF CONSPICUOUS CONSUMPTION CONCEDES THE HIGHER TAXES WON'T AFFECT HIS DAYTODAY LIFESTYLE BUT AS A NEW YORK CITY RESIDENT HE SAYS HE WILL BE PAYING JUST ABOUT 50 OF EACH EXTRA DOLLAR OF INCOME IN FEDERAL STATE AND CITY TAXES AND THAT IS GOING TO HURT PAUL MERSHON A RETIRED GEOLOGIST IN SANTA BARBARA CALIF WHO WOULD BE HIT BY MR CLINTON'S PROPOSED TOPBRACKET 10 SURCHARGE SAYS MY ONLY HOPE IS THAT HIS ADMINISTRATION WILL ONLY LAST FOUR YEARS OUR POLITICAL SYSTEM HAS ALL THIS FAT IN IT BUREAUCRACIES ARE GROWING LIKE MUSHROOMS WE CAN'T CONTROL THEM I'M AT THE GIVEUP STAGE KAREN FAULKNER 43 A SELFEMPLOYED MONEY MANAGER IN DALLAS SAYS THE PROPOSED TAX INCREASE CUTS MY INCENTIVE TO MAKE MONEY TO GET NEW CLIENTS AND NEW BUSINESS IT'S TOTALLY A REDISTRIBUTION OF WEALTH IT DOESN'T MAKE SENSE MS FAULKNER SAYS BECAUSE ANYONE WHO MAKES MORE MONEY TENDS TO BUY A BIGGER HOME AND NICER CARS THE MORE MONEY YOU MAKE THE MORE YOU SPEND FRANCES CLARKE A 72YEAROLD WIDOW FROM LEAWOOD KAN SAYS SHE DOESN'T AGREE THAT THOSE WHO MAKE MORE THAN 100000 SHOULD ALWAYS BE CONSIDERED WEALTHY SHE SAYS HER 37YEAROLD SON AN ATTORNEY MAKES MORE THAN 100000 BUT WORKS TERRIBLE HOURS AND IT TAKES EVERY BIT OF HIS INCOME TO SUPPORT HIS FAMILY BUT FREDERIC SEEGAL COHEAD OF CORPORATE FINANCE AT SALOMON BROTHERS INC THE BIG NEW YORK SECURITIES FIRM SAYS HE UNDERSTANDS THE LOGIC OF SEEKING MORE TAX DOLLARS FROM THE WEALTHY WHAT DID WILLIE SUTTON SAY WHY DO YOU TAX THE RICH THAT'S WHERE THE MONEY IS 9302180042 930218 INTERNATIONAL BRIEF CANON INC JAPANESE FIRM POSTS '92 RISE OF 13 IN PRETAX EARNINGS CANON INC A JAPANESE MAKER OF CAMERAS COPYING MACHINES AND COMPUTER PERIPHERALS REPORTED THAT ITS UNCONSOLIDATED PRETAX PROFIT EDGED UP 13 DURING 1992 TO 7713 BILLION YEN 643 MILLION NET INCOME MEANWHILE WAS DOWN 5 TO 4045 BILLION YEN AS SALES EASED 09 TO 1063 TRILLION YEN THE FALL IN NET REFLECTED AN EXTRAORDINARY 696 BILLIONYEN PAYMENT TO SETTLE A SERIES OF LAWSUITS OVER PATENTS A SPOKESMAN SAID DURING THE YEAR CANON SETTLED A LAWSUIT BY HONEYWELL INC OF THE US OVER PATENTS FOR THAT COMPANY'S LENS TECHNOLOGY CANON SAID THE BUSINESS ENVIRONMENT SHOULD REMAIN SEVERE DURING THE COMING YEAR AMID INCREASED COMPETITION IN THE CURRENT YEAR CANON EXPECTS ITS UNCONSOLIDATED PRETAX PROFIT TO EDGE UP 05 TO 7750 BILLION YEN THE COMPANY SAID ITS NET INCOME SHOULD RISE 14 TO 41 BILLION YEN 9302180041 930218 BUSINESS BRIEF STERLING BANCORP FOURTHPERIOD NET EXPECTED TO RISE INVESTMENTS CITED STERLING BANCORP SAID IT EXPECTS TO REPORT A NEAR DOUBLING IN FOURTHQUARTER NET INCOME ATTRIBUTABLE TO HIGHER NET INTEREST INCOME AND BETTER RETURNS ON ITS INVESTMENT PORTFOLIO STERLING BANCORP THE PARENT OF STERLING NATIONAL BANK & TRUST CO OF NEW YORK SAID IT EXPECTS TO EARN 640000 OR 10 CENTS A SHARE IN THE 1992 FOURTH QUARTER COMPARED WITH 327000 OR FIVE CENTS A SHARE IN THE YEAREARLIER PERIOD NET INTEREST INCOME IS EXPECTED TO GROW 17 TO 48 MILLION FROM 41 MILLION NONINTEREST INCOME IS EXPECTED TO RISE TO ABOUT 11 MILLION FROM 656000 REFLECTING INCREASED FEE INCOME FROM MANAGING ASSETS FOR INDIVIDUALS AS WELL AS BUSINESSES FOR 1992 THE COMPANY EXPECTS TO REPORT EARNINGS OF 26 MILLION OR 41 CENTS A SHARE COMPARED WITH LOSSES OF 47 MILLION OR 74 CENTS A SHARE IN 1991 RESULTS IN 1991 INCLUDED THE EFFECT OF A 73 MILLION CHARGE FOR A LOAN TO PETER S KALIKOW REAL ESTATE DEVELOPER AND OWNER OF THE NEW YORK POST MR KALIKOW FILED FOR PERSONAL BANKRUPTCY IN 1991 9302180040 930218 BUSINESS BRIEF CONSOLIDATED RAIL CORP HOLDERS TO VOTE ON CHANGE TO HOLDING COMPANY FORM CONSOLIDATED RAIL CORP SAID IT WOULD ASK SHAREHOLDERS TO VOTE ON A PROPOSAL TO RESTRUCTURE THE COMPANY'S CORPORATE STRUCTURE AT THE ANNUAL MEETING MAY 26 THE FREIGHT RAILROAD OPERATOR SAID SHAREHOLDERS WILL BE ASKED TO APPROVE A HOLDING COMPANY STRUCTURE FOR CONRAIL WE HAVE NO INTENTION OF EXPANDING BEYOND THE TRANSPORTATION INDUSTRY A SPOKESMAN SAID BUT HE SAID THE CHANGE WOULD MAKE SURE OUR OTHER VENTURES ARE TREATED APART FROM THE RAIL OPERATIONS AS A HOLDING COMPANY CONSOLIDATED RAIL COULD AVOID HAVING TO FILE WITH THE INTERSTATE COMMERCE COMMISSION BEFORE MAKING ANY EQUITY OFFERING BUT THE COMPANY SAID IT HAS NO PLANS FOR AN OFFERING THE RAIL COMPANY ALSO NAMED KATHLEEN FELDSTEIN PRESIDENT OF ECONOMIC STUDIES INC A BELMONT MASS PRIVATE CONSULTING FIRM TO THE COMPANY'S BOARD DR FELDSTEIN 52 YEARS OLD WILL COMPLETE THE TERM OF ANN F FRIEDLAENDER WHO DIED OCT 19 1992 FROM CANCER 9302180039 930218 COMMODITIES ENERGY PRICES SLIP AS PLAYERS TRY TO FORECAST EFFECTS OF OPEC PACT AND CLINTON TAX PACKAGE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON WORLD ENERGY PRICES FELL AS MARKET PLAYERS TRIED TO PREDICT AND INTERPRET EVENTS IN VIENNA AND WASHINGTON THE DECLINES CAME DESPITE THE AGREEMENT REACHED IN VIENNA BY THE MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THIS WEEK TO REDUCE THEIR OIL OUTPUT TO 236 MILLION BARRELS A DAY ABOUT 14 MILLION BARRELS LESS THAN THEY ARE CURRENTLY BELIEVED TO BE PRODUCING TRADERS WERE SKEPTICAL THE AGREEMENT WOULD HOLD BECAUSE THE MEETING WAS ROCKIER THAN EXPECTED AND TOOK LONGER THAN ANTICIPATED BELIEVING THE ACCORD MAY BE ON SHAKY GROUND MANY TRADERS SAID THERE WERE ALREADY SIGNS OF TENSION BETWEEN KUWAIT AND OTHER OPEC MEMBERS CLEARLY THE MARKET IS REFLECTING THE OPEC DECISION AS WELL AS THE POTENTIAL IMPACT OF THE PRESIDENTIAL ADDRESS AND WHAT THAT MIGHT MEAN WITH REGARD TO ENERGY TAXES AND GENERAL ECONOMIC CONDITIONS SAID OIL ANALYST ROBERT BOSLEGO PRESIDENT OF BOSLEGO CORP IN WINCHESTER MASS IN RECENT WEEKS THERE WAS A FLURRY OF EXPECTATIONS THAT PRESIDENT CLINTON WOULD PROMOTE AN OIL IMPORT FEE AS PART OF HIS DEFICITREDUCTION PLAN BUT THE CONSENSUS IN ENERGY MARKETS NOW APPEARS TO BE THAT HE INSTEAD WILL OFFER A BROADBASED TAX ON A NUMBER OF FUELS BASED ON THEIR ENERGY CONTENT COAL WOULD BE TAXED MOST AND NATURAL GAS THE LEAST MARKET PLAYERS BELIEVE SOME ALSO SUSPECT A SMALL INCREASE IN THE FEDERAL GASOLINE TAX IN OUR OPINION NEITHER OF THESE TAXES WILL SIGNIFICANTLY AFFECT THE ENERGY MARKETS SAID THE DAILY MARKET REPORT FROM PEGASUS ECONOMETRIC GROUP INC IN HOBOKEN NJ THE REPORT STATES THAT EVEN WITH A SMALL TAX ENERGY PRICES IN THE US WILL REMAIN FAR LOWER THAN IN MOST OTHER INDUSTRIALIZED COUNTRIES MR BOSLEGO AND OTHER ANALYSTS SAID THAT A SMALL ENERGY TAX WOULD ONLY REDUCE ENERGY DEMAND SLIGHTLY AND HAVE LITTLE IMPACT ON PRICES PROBABLY OF EQUAL IF NOT GREATER IMPORTANCE IS IF THE WIDER ECONOMIC OUTLOOK CHANGES MR BOSLEGO SAID IF THE PRESIDENT'S OVERALL ECONOMIC PLAN APPEARS TO SHARPLY CURB THE COUNTRY'S ECONOMIC GROWTH THAT COULD HAVE A SWIFTER AND GREATER IMPACT ON ENERGY DEMAND AND PRICES HE SAID ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE NORTH SEA BRENT CRUDE CONTRACTS FELL BETWEEN 32 CENTS AND 41 CENTS A BARREL IN THIN TRADING SOME EUROPEAN TRADERS SAID THAT IF PRESIDENT CLINTON PROPOSES ENERGY TAXES IN THE US EUROPEAN COUNTRIES MAY BOOST THEIR ENERGY TAXES BUT ACTIVITY WAS SLOW SOME SAID BECAUSE OF LARGESCALE OIL INDUSTRY MEETINGS AND PARTIES THIS WEEK IN LONDON ON THE NEW YORK MERCANTILE EXCHANGE LIGHT SWEET CRUDE OIL FOR DELIVERY IN MARCH SLID 20 CENTS A BARREL TO 1933 THE CONTRACT TRADED BETWEEN 1924 AND 1961 WHILE EVENTS FROM WORLD CAPITALS ARE EXPECTED TO DETERMINE THE OVERALL DIRECTION OF OIL AND PETROLEUM PRODUCT PRICES IMMEDIATE MARKET FUNDAMENTALS LIKE INVENTORY LEVELS ARE EXPECTED TO DETERMINE THE RELATIONSHIPS BETWEEN CRUDE AND PRODUCTS IN THE SHORT RUN FOR INSTANCE RECENT BUILDUPS IN US GASOLINE INVENTORIES HAVE COMPRESSED THE DIFFERENCES BETWEEN CRUDE AND GASOLINE PRICES AFTER THE COMPLETION OF TRADING ON THE NEW YORK MERC YESTERDAY THE AMERICAN PETROLEUM INSTITUTE REPORTED THAT GASOLINE STOCKS INCREASED ABOUT 17 MILLION BARRELS IN THE LATEST WEEK CLOSE ENOUGH TO MARKET EXPECTATIONS TO KEEP THOSE SPREADS THE SAME DISTILLATE STOCKS DECREASED BY 29 MILLION BARRELS API SAID WHICH IS LESS THAN EXPECTED A LARGE INCREASE IN CRUDE OIL INVENTORIES OF NEARLY SIX MILLION BARRELS COULD ACCELERATE THE DECLINE IN CRUDE PRICES IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS PRECIOUS METALS FUTURES RETREATED SHARPLY GIVING UP MUCH OF THEIR TUESDAY GAINS ANALYSTS SAID THAT YESTERDAY'S DECLINE IN GOLD SILVER PLATINUM AND PALLADIUM FUTURES FOLLOWED A PATTERN OF SHARP SELLOFFS ON THE HEELS OF SPECULATIVE BUYING SURGES ON THE NEW YORK COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY DROPPED 190 TO 33150 AN OUNCE AND SILVER FOR MARCH DELIVERY FELL 59 CENTS TO 3653 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE APRIL PLATINUM SKIDDED 450 TO 36650 AN OUNCE WHILE PALLADIUM FOR JUNE DELIVERY SLID 180 TO 11250 AN OUNCE ANALYSTS SAID THAT THE CLINTON ADMINISTRATION'S PROPOSALS FOR HEFTY TAX INCREASES WOULD LIKELY SLOW US ECONOMIC GROWTH WHICH IN TURN MAY AUGUR A MARKED SLOWDOWN IN US DEMAND FROM INDUSTRIAL USERS OF SILVER PLATINUM AND PALLADIUM THAT PROSPECT HURT FUTURES PRICES OF THOSE METALS YESTERDAY THEY SAID SUGAR SUGAR FUTURES CONTINUED THEIR ADVANCE ON CONFIRMATION FROM HAVANA OF REPORTS THAT CUBA HAD RECENTLY BOUGHT 100000 TONS OF RAW SUGAR FROM THAILAND IN THE CASH MARKET SUGAR FOR MARCH DELIVERY SETTLED 037 CENT HIGHER AT 933 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE AS TRADERS AND COMMODITY FUNDS DIGESTED NEWS THAT CUBA'S CROP WILL BE SIGNIFICANTLY LOWER THAN THE PREVIOUS SEASON ANALYSTS SAID THAT A BREACH OF THE 10CENTSAPOUND RESISTANCE LEVEL IS WITHIN REACH THIS WEEK GRAINS & SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS JUMPED AMID REPORTS THAT EGYPT AND TURKEY ARE INTERESTED IN BUYING WHEAT EGYPT IS EXPECTED TO TENDER FOR 200000 METRIC TONS OF SUBSIDIZED US WHEAT THIS WEEKEND TURKEY IS REPORTEDLY INTERESTED IN BUYING UP TO 500000 METRIC TONS OF WHEAT FROM WORLD SOURCES IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE 725 CENTS A BUSHEL TO SETTLE AT 36875 WHEAT PRICES WERE ALSO FUELED BY SPECULATION THAT THE AGRICULTURE DEPARTMENT'S EXPORT SUBSIDY PROGRAM MIGHT LARGELY ESCAPE MR CLINTON'S BUDGET AX 9302180038 930218 BUSINESS BRIEF ANALOG DEVICES INC INTEGRATED CIRCUIT MAKER POSTS FISCAL 1STPERIOD PROFIT ANALOG DEVICES INC REPORTED A PROFIT IN ITS FISCAL FIRST QUARTER ENDED JAN 30 VS A YEARAGO LOSS AND SAID IT EXPECTS TO POST SIGNIFICANT REVENUE AND PROFIT GROWTH FOR THE YEAR AS A WHOLE THE MAKER OF INTEGRATED CIRCUITS CITING STRONG DEMAND FOR PRODUCTS USED IN PERSONAL COMPUTER APPLICATIONS AND CELLULAR TELEPHONE SYSTEMS SAID IT HAD NET INCOME OF 81 MILLION OR 16 CENTS A SHARE COMPARED WITH A LOSS OF 972000 OR TWO CENTS A SHARE IN THE YEARAGO QUARTER SALES ROSE 15 TO 1513 MILLION FROM 1313 MILLION THE NORWOOD MASS COMPANY ADDED THAT IT'S OPTIMISTIC ABOUT THE REST OF THE YEAR BECAUSE BOOKINGS IN THE FIRST QUARTER EXCEEDED BOOKINGS IN THE FOURTH QUARTER FOR THE FIRST TIME IN FOUR YEARS IN THE YEAR ENDED LAST OCT 31 THE COMPANY HAD NET OF 149 MILLION OR 31 CENTS A SHARE ON SALES OF 5673 MILLION 9302180037 930218 BUSINESS BRIEF SYNCOR INTERNATIONAL CORP HEALTH PRODUCT MAKER TO SELL ITS HOME INFUSION BUSINESS SYNCOR INTERNATIONAL CORP SAID IT PLANS TO DIVEST ITS HOME INFUSION BUSINESS WHICH IT VALUED AT 12 MILLION OR APPROXIMATELY 6 OF TOTAL REVENUE SYNCOR SAID IT WOULD CLOSE FOUR HOME INFUSION SITES AND SELL THE REMAINING NINE FACILITIES BY MAY 31 IN ORDER TO FOCUS ON ITS NEW ONCOLOGY BUSINESS A SPOKESWOMAN FOR THE CHATSWORTH CALIF MAKER AND DISTRIBUTOR OF ADVANCED MEDICAL DIAGNOSTIC PRODUCTS SAID THERE AREN'T ANY PROSPECTIVE BUYERS YET GENE MCGREVIN SYNCOR'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE PLANNED DIVESTITURE WOULDN'T IMPACT ANALYSTS' EARNINGS ESTIMATES OF 84 CENTS TO 86 CENTS A SHARE FOR SYNCOR'S FISCAL YEAR ENDING MAY 31 IN 1992 SYNCOR HAD NET INCOME OF 69 MILLION OR 63 CENTS A SHARE ON SALES OF 210 MILLION 9302180036 930218 BUSINESS BRIEF CAESARS WORLD INC FISCAL SECONDQUARTER NET ROSE 11 TO 255 MILLION CAESARS WORLD INC SAID ITS FISCAL SECONDQUARTER NET INCOME ROSE NEARLY 11 TO 255 MILLION OR 105 A SHARE ON INCREASED REVENUE FROM SLOT MACHINES IN THE SAME PERIOD LAST YEAR THE CASINO COMPANY REPORTED NET OF 231 MILLION OR 96 CENTS A SHARE REVENUE FOR THE QUARTER ENDED JAN 31 WAS 2645 MILLION COMPARED WITH 2544 MILLION A YEAR EARLIER HENRY GLUCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE SECOND QUARTER RESULTS REPRESENT ALLTIME HIGHS FOR ANY QUARTER IN CAESARS WORLD'S HISTORY SLOT MACHINE REVENUE IN NEVADA DURING THE RECENT QUARTER WAS UP 43 FROM THE SAME PERIOD LAST YEAR PRIMARILY DUE TO INCREASED TRAFFIC AT CAESARS PALACE IN LAS VEGAS THE SUBSTANTIALLY HIGHER TABLE GAME ACTIVITY IN THE RECENT QUARTER OFFSET A DECLINE FROM THE VERY HIGH LEVEL OF TABLE GAME WIN PERCENTAGES RECORDED IN THE SECOND QUARTER OF 1992 THE COMPANY SAID IN NEW JERSEY CAESARS ATLANTIC CITY'S TABLE GAME ACTIVITY WAS RELATIVELY FLAT WHEN COMPARED WITH LAST YEAR THE COMPANY SAID 9302180035 930218 CLINTON'S ECONOMIC PACKAGE A PLAN THAT'S TAILORED TO SUIT THE DEMOCRATS BY JOHN HARWOOD AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BY TAILORING HIS ECONOMIC PROGRAM SO CLOSELY TO THE INTERESTS OF DEMOCRATIC CONSTITUENCIES PRESIDENT CLINTON HAS STAKED HIS FORTUNES ON PARTY DISCIPLINE AND REDUCED HIS MARGIN FOR ERROR ON CAPITOL HILL WARY OF ALIENATING DEMOCRATIC LAWMAKERS THE WHITE HOUSE EASED OFF ITS INITIAL GOAL OF CUTTING 2 IN SPENDING FOR EVERY 1 IN TAX INCREASES INSTEAD THE PLAN MR CLINTON OFFERED LAST NIGHT TAKES A BIGGER BITE FROM THE WEALTHY AND CORPORATIONS AS PART OF AN OVERALL TAX PACKAGE OF 2449 BILLION OVER SIX YEARS WHILE SHORING UP THE PRESIDENT'S PARTISAN BASE THAT APPROACH HAS DRAWN SCATHING CRITICISM FROM REPUBLICANS AND SHARPLY DIMINISHES THE PROSPECT THAT THE ADMINISTRATION CAN FORGE A CENTRIST BIPARTISAN LEGISLATIVE MAJORITY HE'S GOT TO COUNT ON GETTING 218 DEMOCRATS SAYS MARYLAND REP STENY HOYER A MEMBER OF THE DEMOCRATIC LEADERSHIP NOTWITHSTANDING THE IMMEDIATE FIRESTORM OVER TAXES DEMOCRATIC LEADERS CONTEND THE ADMINISTRATION PROPOSAL WILL HAVE CONSIDERABLE POLITICAL STAYING POWER THE WHITE HOUSE THEY ARGUE HAS HONED IN ON POLICY GOALS WITH BROAD PUBLIC SUPPORT INCREASING SPENDING ON PROGRAMS FOR CHILDREN WHILE CUTTING DEFENSE TAXING THE RICH AND REDUCING THE DEFICIT THE PACKAGE'S BOLDLY PROGRESSIVE TILT DOVETAILS WITH POLITICAL THEMES DEMOCRATS USED EFFECTIVELY DURING THE RECENT RECESSION TO PAINT REPUBLICANS AS DEFENDERS OF THE AFFLUENT AND THE STATUS QUO IT WAS WHAT THE AMERICAN PEOPLE SAID THEY WANTED FAIRNESS CHANGE INVESTMENT IN THE FUTURE CUTTING THE DEBT BECAUSE IT'S EATING INTO OUR FUTURE SAYS REP LOUISE SLAUGHTER D NY THIS COULD BE THE LAST CHANCE WE HAVE FOR REPUBLICANS IT'S A MARKED CONTRAST FROM 1981 WHEN THEY ANSWERED THEIR OWN NEW PRESIDENT'S CALL TO CUT TAXES RATHER THAN RAISE THEM THEN HOUSE REPUBLICANS WORE MINIATURE BASEBALL BATS ON THEIR LAPELS TO SHOW THEY WERE GOING TO BAT FOR RONALD REAGAN YESTERDAY THE GOP DISTRIBUTED RED BUTTONS THAT SAID IT'S SPENDING STUPID IN MOCKERY OF THE CLINTON CAMPAIGN'S MOTTO EVEN HOUSE MINORITY LEADER ROBERT MICHEL OF ILLINOIS AN AVUNCULAR FIGURE FROM THE MIDWESTERN HEARTLAND DISPLAYED PARTISAN FRUSTRATION IN TELEVISED REMARKS LAST NIGHT IN RESPONSE TO THE PRESIDENT'S SPEECH THE ADMINISTRATION IS ABOUT TO LAUNCH THE BIGGEST PROPAGANDA CAMPAIGN IN RECENT POLITICAL HISTORY MR MICHEL SAID THE AMERICAN PEOPLE WOULD DO WELL TO REMEMBER WHEN YOU HEAR A DEMOCRAT CALL FOR TAXES DO NOT ASK FOR WHOM THE TAX RISES IT WILL RISE FOR YOU LAST NIGHT'S POLITICAL SKIRMISHING ONLY BEGAN WHAT WILL BE A LONG AND DIFFICULT FIGHT ON CAPITOL HILL HOPING TO BUILD MOMENTUM DEMOCRATIC LEADERS WILL BEGIN AS EARLY AS TODAY TO DRAFT THE MOST POPULAR ELEMENT OF MR CLINTON'S PACKAGE AN EXTENSION OF JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED BUT LIKE AN INVADING GENERAL THE NEW PRESIDENT'S SUPPLY LINES WILL BE STRAINED AS HE MOVES FURTHER AHEAD AND THE BUDGET PROCESS BREAKS INTO A MULTITUDE OF SKIRMISHES AND POTENTIAL AMBUSHES THIS SUMMER DEMOCRATS ARE GOING TO KEEP THEIR POWDER DRY UNTIL THEY SEE HOW THIS IS GOING TO PLAY IN THE HINTERLANDS SAYS PAT GRIFFIN A FORMER TOP SENATE DEMOCRATIC AIDE IF HE MR CLINTON CAN'T BUILD A GROUNDSWELL THEN THE PACKAGE WILL COLLAPSE SOME MEMBERS ARE ALREADY SKITTISH ABOUT THE PROPOSED 16 BILLION FISCAL 1993 SPENDING STIMULUS WHICH BEGINS TO MOVE THROUGH THE HOUSE APPROPRIATIONS COMMITTEE NEXT WEEK AT THE SAME TIME THEY'RE BEING ASKED TO SUPPORT TAX INCREASES TO REDUCE THE DEFICIT AFTER FIRST SETTING FISCAL GOALS BY PASSING A BUDGET RESOLUTION LAWMAKERS THEN MUST MEET THEM WITH SPECIFIC SPENDING CUTS AND TAX INCREASES THAT PROCESS KNOWN AS RECONCILIATION WON'T BE COMPLETED UNTIL AUGUST IF THEN THE BUDGET STAKES WILL GO EVEN HIGHER IF THE ADMINISTRATION IS ABLE TO MOVE QUICKLY ON ITS HEALTHCARE REFORM BILL AND MELD THAT INITIATIVE WITH THE DEFICITREDUCTION PACKAGE THIS SUMMER TAX WRITERS MIGHT PREFER SUCH A STRATEGY WHICH WOULD AVOID THE NEED OF A SECOND VOTE LATER ON REVENUE INCREASES AND THE RULES GOVERNING THE BUDGET PROCESS WOULD ENABLE SENATE DEMOCRATS TO EXPEDITE ACTION BY LIMITING DEBATE AND AMENDMENTS REP JIM BACCHUS OF FLORIDA ILLUSTRATES MR CLINTON'S POLITICAL CHALLENGE A CONSERVATIVE DEMOCRAT MR BACCHUS WANTS THE NEW PRESIDENT TO SHARPLY REDUCE THE FEDERAL BUDGET DEFICIT BUT AS THE REPRESENTATIVE OF A FLORIDA DISTRICT THAT INCLUDES THE KENNEDY SPACE CENTER AND A LARGE SHARE OF RETIREES HE VIGOROUSLY AND SUCCESSFULLY OPPOSED TWO PROMINENT SPENDING REDUCTIONS FLOATED BEFORE MR CLINTON'S SPEECH LAST NIGHT ELIMINATION OF SPACE STATION FREEDOM AND A ONEYEAR FREEZE ON COSTOFLIVING ADJUSTMENTS FOR SOCIAL SECURITY RECIPIENTS BEYOND THAT MR BACCHUS OBSERVED THIS WEEK MY CONSTITUENTS ARE READY AND PREPARED TO ENGAGE IN SOME REAL BUDGET CUTTING SO MR BACCHUS NOW WILL BE ASKED TO SUPPORT HIGHER TAXES ON WELLTODO SOCIAL SECURITY RECIPIENTS INSTEAD OF COLA CUTS HE SAYS HE'LL CONSIDER IT AMONG THE DANGERS MR CLINTON FACES IS DILUTION OF THE DEFICITREDUCTION PROPOSALS THAT FOR MANY LAWMAKERS REPRESENT THE POLITICAL RATIONALE FOR SUPPORTING TAX INCREASES ALREADY DISAPPOINTED THAT THE WHITE HOUSE ISN'T PROPOSING MORE SPENDING CUTS MODERATE AND CONSERVATIVE DEMOCRATS FEAR THAT TRADITIONAL SPENDING CONSTITUENCIES WILL SPEND THE SPRING AND SUMMER WORKING FURIOUSLY TO STAVE OFF PROPOSED REDUCTIONS THE LONGER WE MESS AROUND ON THE HILL THE MORE THE CHANCE THAT WE SUBSTITUTE SMOKEANDMIRRORS FOR HONEST CUTS SAYS DEMOCRATIC REP TIM PENNY OF MINNESOTA WHO WILL PUSH FOR DEEPER CUTS BUT ISN'T OPTIMISTIC AND IF DEMOCRATIC LEADERS EASE THE PRESIDENT'S BUDGETCUTTING GOALS ANY FURTHER WARNS INFLUENTIAL DEMOCRATIC REP CHARLES STENHOLM OF TEXAS THE LINE WOULD BE DRAWN IN THE SAND THE RESERVATIONS OF CONSERVATIVE DEMOCRATS LIKE MR STENHOLM ONE OF THE BOLL WEEVILS WHO HELPED RONALD REAGAN PASS HIS TAX AND BUDGET PROPOSALS A DOZEN YEARS AGO ARE SIGNIFICANT SINCE MR CLINTON DIDN'T TAILOR HIS PROGRAM TO ATTRACT REPUBLICAN VOTES THE REPUBLICAN RIGHT WOULD HAVE OPPOSED ANY ADMINISTRATION PROPOSAL CONTAINING SIGNIFICANT TAX INCREASES BUT MR CLINTON HAS PUT OFF GOP MODERATES AS WELL BY TARGETING THEIR HIGHINCOME CONSTITUENTS SO HEAVILY FOR TAX INCREASES BY HIS PARTISAN CONDEMNATIONS OF EARLIER REPUBLICAN ADMINISTRATIONS AND BY DECLINING TO SEEK DEEPER SPENDING CUTS I DON'T MIND INCREASING TAXES IF I'M CONVINCED THOSE INCREASED TAXES ARE NEARLY ALL GOING TO REDUCE THE DEFICIT AND THAT DOESN'T SEEM TO BE THE CASE HERE SAYS MODERATE GOP SEN JOHN CHAFFEE OF RHODE ISLAND AND WHILE DEMOCRATS SAY CONSERVATIVE ECONOMIC ASSUMPTIONS LEND MR CLINTON'S PROGRAM SPECIAL CREDIBILITY OTHER REPUBLICANS COUNTER BY MOCKING HIS NOWABANDONED CAMPAIGN PROMISE OF A TAX CUT FOR THE HARDPRESSED MIDDLE CLASS THE GUY'S TOO CUTE BY HALF SAYS CONSERVATIVE REP HENRY HYDE OF ILLINOIS THE SIZE OF THE CLINTON PACKAGE MAKES IT THAT MUCH HARDER FOR REPUBLICANS TO CRAFT AN ALTERNATIVE WITHOUT THEMSELVES PROPOSING TO RAISE TAXES AFTER MEETING THIS WEEK WITH THEIR NEW PARTY CHAIRMAN HALEY BARBOUR TOP HOUSE AND SENATE REPUBLICANS REMAINED DIVIDED ON WHAT APPROACH TO TAKE HOUSE MINORITY WHIP NEWT GINGRICH URGED HIS COLLEAGUES TO RESPOND TO MR CLINTON LIKE AMERICANS NOT REPUBLICANS THE IMPLICATION BEING THAT THE GOP MAY BE BETTER OFF HOLDING BACK RAISING QUESTIONS AND HOPING THE DEMOCRATS STUMBLE THE STIMULUS PACKAGE TO BE FOLLOWED BY YET ANOTHER MORE CONVENTIONAL SUPPLEMENTAL SPENDING BILL WILL BE AN EARLY TARGET IN THE HOUSE WHERE REPUBLICANS ARE EMBOLDENED BY THE PROSPECT OF DEMOCRATIC DEFECTIONS A CRUCIAL SWING BLOC COULD BE MODERATE NORTHERN REPUBLICANS WHO LIKE SOME OF THE PRESIDENT'S PROPOSED SPENDING INITIATIVES SUCH AS THOSE FOR CHILDREN AND RESEARCH BUT WHO HAVE BEEN STUNG BY THE WHITE HOUSE'S FAILURE TO CONSULT WITH THEM MORE AND WHO WORRY ABOUT CONSTITUENT REACTION TO HIGHER TAXES YOU TALK ABOUT PEOPLE MAKING 100000 A YEAR IT HAS A WHOLE DIFFERENT MEANING ON LONG ISLAND THAN IN ARKANSAS SAYS REP RICK LAZIO A REPUBLICAN FRESHMAN FROM SUBURBAN NEW YORK A SENIOR WHITE HOUSE OFFICIAL DESCRIBES THE BUDGET AS A DEMOCRATIC PLAN BUT SAYS THAT THE PRESIDENT HAS BEGUN REACHING OUT TO REPUBLICANS MAKING PERSONAL PHONE CALLS TO AS MANY AS 10 GOP SENATORS IN RECENT DAYS AND ARRANGING TO MEET WITH HOUSE REPUBLICANS THE DEMOCRATS' HOPE IS THAT REPUBLICANS ULTIMATELY WON'T BE ABLE TO SURMOUNT INTRAPARTY DIVISIONS AND UNITE BEHIND AN ALTERNATIVE THAT COULD SIPHON OFF DEMOCRATIC CONSERVATIVES AND DISPLACE MR CLINTON'S PACKAGE INDEED REPUBLICAN OPPOSITION MAY ULTIMATELY PROVE LESS SIGNIFICANT THAN THE REACTION OF THE MOST CONSPICUOUS DEFICITFIGHTER OF THE 1992 CAMPAIGN WE DON'T HAVE THE FOCUS OF PERSONALITY SAYS OREGON GOP SEN MARK HATFIELD ROSS PEROT DOES REACHING FOR ESSENTIALLY AN ALLDEMOCRATIC LEGISLATIVE MAJORITY THE PRESIDENT HAS LOBBIED LAWMAKERS PERSONALLY AND FASHIONED HIS PROGRAM TO FIT THEIR CONSTITUENCIES THE HEAVY FOCUS ON UPPERINCOME TAX INCREASES SEEKS TO PROTECT TRADITIONAL DEMOCRATIC WORKING CLASS CONSTITUENCIES AND DOVETAILS WITH THE FACT THAT SOUTHERN AND MIDWEST MODERATES AND CONSERVATIVES COME FROM DISTRICTS WITH AVERAGE INCOMES FAR BELOW 100000 FOR DEMOCRATIC LIBERALS NEW SPENDING FOR EDUCATION HEALTH CARE AND INFRASTRUCTURE IN THE STIMULUS PACKAGE AND IN THE ADMINISTRATION'S REARRANGED BUDGET PRIORITIES HELPS EASE POLITICAL PRESSURES BUILT UP UNDER THREE CONSECUTIVE REPUBLICAN ADMINISTRATIONS IT'S A PLAN THAT INVESTS MONEY IN THINGS THAT DEMOCRATS BELIEVE IN SAYS FIRSTTERM REP CYNTHIA MCKINNEY OF SOUTH CAROLINA WHO LEFT A RECENT MEETING WITH MR CLINTON CONFIDENT THAT THE PACKAGE MEANS DEVELOPMENT MONEY FOR HER LARGELY POOR MAJORITYBLACK DISTRICT BY INCLUDING CONCESSIONS TO SMALL BUSINESS AND REAL ESTATE INTERESTS THE WHITE HOUSE MOVED TO BLUNT CORPORATE OPPOSITION AND WHILE THE PACKAGE STILL CONTAINS PLENTY OF TARGETS FOR SPECIAL INTERESTS TO SHOOT AT ADMINISTRATION ALLIES SAY THE VERY BREADTH OF THE OPPOSITION COULD MAKE IT VULNERABLE WHEN YOU POSE A PACKAGE AS LARGE AS THIS YOU REVERSE THE PRESUMPTION AND MAKE IT HARDER FOR ANY INDIVIDUAL INTEREST GROUP TO GET OUT FROM UNDER BECAUSE IT COMES AT EVERYONE ELSE'S EXPENSE SAYS FRED WERTHEIMER PRESIDENT OF THE SELFSTYLED CITIZENS' LOBBY COMMON CAUSE IN THAT REGARD THE COMING BATTLE MAY MORE CLOSELY RESEMBLE PRESIDENT REAGAN'S 1986 TAXREFORM STRUGGLE THAN THE FIGHT OVER HIS 1981 ECONOMIC PROPOSALS DEMOCRATIC LEADERS ARE COUNTING ON ANOTHER POTENT ASSET IN THEIR ATTEMPT TO MAINTAIN PARTY DISCIPLINE THE KNOWLEDGE THAT HAVING ENDED DIVIDED GOVERNMENT VOTERS WILL PUNISH THE PARTY SEVERELY IF IT FAILS TO ACT THE IMPORTANT THING IS TO PULL BEHIND THE PRESIDENT SAYS REP PETER HOAGLAND A NEBRASKA MODERATE AND NEW MEMBER OF THE WAYS AND MEANS COMMITTEE I WOULD LIKE TO SEE MORE DEFICIT REDUCTION BUT HE'S GOT TO MAKE THE JUDGMENT CALLS SOME EVEN MAINTAIN THAT THE AFTEREFFECTS OF 1992 THE ELECTION YEAR THAT PRODUCED ROSS PEROT AND SENT 110 NEW HOUSE MEMBERS TO WASHINGTON MAY YET TURN CONVENTIONAL POLITICAL CALCULATIONS UPSIDE DOWN WE'RE IN UNCHARTED TERRITORY SAYS REP TOM BARLOW A KENTUCKY DEMOCRAT WHO INSISTS CONGRESS WILL IMPROVE UPON THE PRESIDENT'S GOOD FIRST SLICE AT DEFICIT REDUCTION THE PEOPLE WHO SUCCEED ARE GOING TO BE THE ONES WHO ARE BOLD 9302180034 930218 BUSINESS BRIEF SEAMAN FURNITURE CO EMERGING FROM CHAPTER 11 COMPANY POSTS NET INCOME SEAMAN FURNITURE CO WHICH RECENTLY EMERGED FROM BANKRUPTCY PROTECTION REPORTED NET INCOME IN THE THREE MONTHS ENDED DEC 31 AND SAID IT WILL APPLY WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOR AN OVERTHECOUNTER LISTING FOR THE THREE MONTHS THE WOODBURY NY FURNITURE STORE OPERATOR REPORTED THAT UNAUDITED NET INCOME WAS 384000 COMPARED WITH A NET LOSS OF 59 MILLION IN THE YEAREARLIER PERIOD REVENUE FELL 40 TO 464 MILLION IN THE 1992 PERIOD SEAMAN OPERATED 22 FURNITURE STORES COMPARED WITH 37 A YEAR EARLIER SEAMAN REPORTED AN UNAUDITED 1093 MILLION IN TOTAL ASSETS AND 215 MILLION IN LIABILITIES AS OF DEC 31 9302180033 930218 WHAT'S NEWS WORLDWIDE THE UN SUSPENDED MOST OF ITS AID OPERATIONS INSIDE BOSNIA UN OFFICIALS HALTED AID DELIVERIES AND ACCUSED WARRING FACTIONS OF USING FOOD AS A POLITICAL WEAPON IN BOSNIA SADAKO OGATA THE UN HIGH COMMISSIONER FOR REFUGEES SAID THAT AID SHIPMENTS WOULDN'T RESUME WITHOUT GUARANTEES FROM ALL PARTIES TO SAFEGUARD AND ALLOW PASSAGE OF FOOD CONVOYS THE AID DECISION DOESN'T AFFECT UN PEACEKEEPING ACTIVITIES IN BOSNIA MEANWHILE SERB TANKS BORE DOWN ON A WESTERN SUBURB OF SARAJEVO IN AN APPARENT ATTEMPT TO CAPTURE MORE OF THE CAPITAL BEFORE PEACE TALKS RESUME TOMORROW IN NEW YORK THE CLINTON ADMINISTRATION HAS PROPOSED PROVIDING PATROL BOATS TO ROMANIA AND BULGARIA SO THEY CAN PREVENT SHIPS ON THE DANUBE FROM VIOLATING UN SANCTIONS AGAINST SERBIA US OFFICIALS SAID RUSSIAN PRESIDENT YELTSIN REACHED AN AGREEMENT WITH HIS CHIEF RIVAL PARLIAMENT CHAIRMAN KHASBULATOV ON THE NEED TO WORK OUT A POWERSHARING ARRANGEMENT WITHIN 10 DAYS IF A COMPROMISE EMERGES THE GOVERNMENT WOULD CANCEL A REFERENDUM IN WHICH THE VOTERS WERE TO HAVE DECIDED HOW TO DISTRIBUTE POWER CHINA RELEASED THE MOST PROMINENT STUDENT LEADER OF THE 1989 DEMOCRACY MOVEMENT AND TWO OTHER DISSIDENTS IN AN APPARENT GESTURE TO OLYMPICS ORGANIZERS AND THE US WANG DAN WHO WAS NO 1 ON CHINA'S MOSTWANTED LIST AFTER THE TIANANMEN MASSACRE WAS RELEASED FROM PRISON FOUR MONTHS BEFORE THE END OF HIS FOURYEAR SENTENCE ISRAELI FORCES CLASHED WITH PROIRANIAN GUERRILLAS IN SOUTH LEBANON AND OFFICIALS SAID THE SEVENHOUR BARRAGE WAS THE HEAVIEST SHELLING IN FIVE MONTHS ISRAEL'S RABIN SAID REBELS TRIED TO ATTACK ON A BROAD FRONT BUT THAT ISRAEL WAS TRYING TO RESTORE CALM SECRETARY OF STATE CHRISTOPHER WAS DUE TO ARRIVE IN THE MIDEAST TODAY EIGHT NOBEL PEACE PRIZE WINNERS URGED THE INTERNATIONAL COMMUNITY TO JOIN IN DEMANDING THE RELEASE OF BURMA'S MAIN OPPOSITION LEADER THE NOBEL LAUREATES GATHERED IN THAILAND TO CALL FOR THE UNCONDITIONAL RELEASE OF AUNG SAN SUU KYI WINNER OF THE 1991 NOBEL PEACE PRIZE AND ABOUT 1500 OTHER POLITICAL PRISONERS IN BURMA US SCIENTISTS FINALLY BROKE INTO THE GENES OF THE MALARIA PARASITE POSSIBLY OPENING THE WAY TO WEAPONS AGAINST THE DISEASE THE RESEARCHERS SAID THAT FOR THE FIRST TIME THEY HAVE MADE TESTTUBE COPIES OF TWO OF THE CHROMOSOMES THAT CONTAIN THE GENES OF THE MICROBE THAT MOSQUITOES TRANSMIT TO HUMANS DISSIDENT UNITA MEMBERS DEFIED THEIR LEADER SAVIMBI AND TOOK THEIR SEATS IN ANGOLA'S PARLIAMENT IN A SIGN OF A SPLIT IN THE REBEL GROUP THE DECISION BY 10 OF THE 70 UNITA DEPUTIES ELECTED LAST SEPTEMBER FOLLOWED CRITICISM BY FORMER REBEL LEADERS OF THE FIGHTING THAT ERUPTED AFTER SAVIMBI REFUSED TO ACCEPT DEFEAT IN THE ELECTION THE AFRICAN NATIONAL CONGRESS SAID IT DECIDED TO CONSULT WITH ITS MEMBERS ON POWERSHARING PLANS SPARKING CONCERN THAT SOUTH AFRICA'S TRANSITION TO DEMOCRACY MAY BE DELAYED POLITICIANS SAID THE CONSULTATION PROCESS COULD TAKE MONTHS AND SET BACK THE TIMETABLE FOR MULTIRACIAL ELECTIONS DUE LATE THIS YEAR OR EARLY IN 1994 NEW ZEALAND RESEARCHERS FOUND CALCIUM SUPPLEMENTS SIGNIFICANTLY SLOWED BONE LOSS IN A STUDY OF POSTMENOPAUSAL WOMEN AND FOR THE FIRST TIME SHOWED THAT THE EFFECT IS LASTING THEIR STUDY PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE CLEARS UP SOME CONFUSION SURROUNDING THE EFFECT OF CALCIUM ON OSTEOPOROSIS UN WEAPONS INSPECTORS OBTAINED INFORMATION NEAR BAGHDAD LEADING SOME TO BELIEVE THAT IRAQ MAY BE ACTIVELY PURSUING ITS MISSILE PROGRAM THE UN TEAM USED A HELICOPTER TO VISIT A SITE SOUTH OF THE CAPITAL BUT REFRAINED FROM FLYING OVER BAGHDAD CLINTON CONFIRMED THAT A JOGGING TRACK IS BEING BUILT AT THE WHITE HOUSE THE PRESIDENT SAID CONTRIBUTIONS NOT TAX MONEY WOULD PAY FOR THE ONELANE TRACK ALONG THE DRIVEWAY OF THE SOUTH LAWN HIS PRESS OFFICE SAID THE TRACK WOULD COST 30000 US TROOPS FOUND CRATES OF WEAPONS AND AMMUNITION NEAR A MARINE DORMITORY IN SOMALIA'S CAPITAL AS VIOLENCE PLAGUED RELIEF GROUPS ELSEWHERE IN MOGADISHU MEANWHILE THE UN FOOD AND AGRICULTURE ORGANIZATION SAID THAT DESPITE A TWOMONTHOLD EFFORT TO DELIVER FOOD AND SUPPLIES TO THE SOMALI POPULATION MANY ARE STILL FAMINESTRICKEN 9302180032 930218 INTERNATIONAL BRIEF RTZ CORP CHARGES OF 725 MILLION SET ON UNITS OF NORTH AMERICA RTZ CORP OF BRITAIN SAID IT WILL TAKE THE EQUIVALENT OF MORE THAN 50 MILLION 725 MILLION IN EXCEPTIONAL CHARGES IN ITS 1992 ACCOUNTS FOR ITS NORTH AMERICAN DIVISIONS THE COMPANY SAID ITS US UNIT KENNECOTT CORP WILL HALT PRODUCTION AT ITS 54OWNED GREENS CREEK LEAD SILVER AND ZINC MINE IN ALASKA BECAUSE OF EXTREMELY LOW PRICES FOR ALL THREE METALS THAT WILL RESULT IN A 48 MILLION PROVISION AGAINST THE BOOK VALUE OF RTZ'S INVESTMENT IN GREENS CREEK THE CUTBACK WILL AFFECT 230 EMPLOYEES THE MINE IS A JOINT VENTURE WITH HECLA MINING CO CSX ENERGY CORP AND EXALAS RESOURCES RTZ ALSO REPORTED THAT ITS CANADIAN CONSTRUCTION UNIT INDAL RECORDED A LOSS OF 58 MILLION CANADIAN DOLLARS US461 MILLION IN 1992 WIDENING FROM A C12 MILLION LOSS IN 1991 THE 1992 LOSS INCLUDED EXCEPTIONAL RESTRUCTURING COSTS OF C38 MILLION FULL 1992 RESULTS WILL BE PUBLISHED MARCH 11 9302180031 930218 CREDIT MARKETS BOND YIELDS DECLINE TO RECORD LOWS AS INVESTORS ARE HEARTENED BY REPORTS ON CLINTON'S PLANS BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND YIELDS DROPPED TO RECORD LOWS YESTERDAY IN LIGHT TRADING AS INVESTORS AWAITED PRESIDENT CLINTON'S SCHEDULED SPEECH TO A JOINT SESSION OF CONGRESS THROUGHOUT THE DAY BOND INVESTORS WERE ENCOURAGED BY NEWS REPORTS SUGGESTING THAT THE PRESIDENT PLANNED TO TAKE AN AGGRESSIVE STANCE IN REDUCING THE FEDERAL BUDGET DEFICIT BY INCREASING TAXES AND CUTTING SPENDING BY THE END OF TRADING IN THE US MARKETS YESTERDAY THE YIELD FOR THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED TO 710 THE LOWEST SINCE THE GOVERNMENT STARTED REGULAR AUCTIONS OF THE BOND IN 1977 DOWN FROM 714 ON TUESDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE NEARLY 1/2 POINT OR NEARLY 500 FOR A BOND WITH 1000 FACE VALUE TO 100 7/32 THE NEWS LEAKS HAVE BEEN PLENTIFUL SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP THE MARKETS BELIEVE THAT CLINTON IS GETTING VERY STRONG AND EXPERT COUNSEL WITH REGARD TO THE IMPACT OF HIS ECONOMIC PLAN ON THE FINANCIAL MARKETS HE SAID THE LEAKS SHOWED THAT HIS EMPHASIS WOULD BE ON SPENDING REDUCTIONS AND REDUCTION OF THE DEFICIT HE ADDED THERE WAS NOT A LOT OF ACTIVITY SAID STEVEN WOOD DIRECTOR OF FINANCAL MARKETS RESEARCH AT BANK OF AMERICA IN SAN FRANCISCO PEOPLE WERE MOSTLY JUST SITTING AROUND WAITING TO SEE IF THE SPEECH WILL BE IN LINE WITH WHAT HAS BEEN ADVERTISED AND WHAT THE CONGRESSIONAL REACTION IS GOING TO BE MR WOOD SAID PARTICIPANTS ONCE AGAIN LARGELY IGNORED ECONOMIC DATA EVEN THOUGH THEY WERE ON THE FRIENDLY SIDE FOR A CHANGE THE COMMERCE DEPARTMENT REPORTED HOUSING STARTS DROPPED 72 IN JANUARY TO A 1192 MILLION UNIT ANNUAL RATE THE REPORT WAS WEAKER THAN EXPECTED WITH MOST ECONOMISTS HAVING CALLED FOR A DECLINE TO A ABOUT 13 MILLIONUNIT RATE THERE WASN'T MUCH OF A MARKET REACTION SAID RAYMOND STONE A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES IN PRINCETON NJ WHILE THE MARKET HAS GENERALLY BEEN IGNORING ECONOMIC DATA AS THE FOCUS HAS BEEN MAINLY ON EVENTS IN WASHINGTON THERE ALSO WAS A SENSE YESTERDAY THAT THE DECLINE IN HOUSING STARTS WAS WEATHERRELATED AND NOT LIKELY TO BE SUSTAINED THE WEAKNESS WILL PROBABLY BE REVERSED NEXT MONTH AND HOUSING WILL BE OK SAID MR STONE OF STONE & MCCARTHY THE MARKET'S ATTENTION YESTERDAY WAS MAINLY ON THE IMPACT THAT THE PRESIDENT'S DEFICIT REDUCTION PACKAGE WILL HAVE ON THE ECONOMY AND THE PROSPECTS FOR ADDITIONAL FEDERAL RESERVE RATE CUTS A STRONG TAX PACKAGE WOULD HURT THE ECONOMY IN WHICH CASE INTEREST RATES WOULD GO LOWER NOTED ANDY BRENNER A VICE PRESIDENT AT NOMURA SECURITIES INTERNATIONAL INC THAT SENTIMENT HELPED SHORTTERM SECURITIES OUTPERFORM LONGTERM SECURITIES FOR THE SECOND CONSECUTIVE SESSION AS YIELDS ON SHORTER MATURITIES FELL FASTER THAN THOSE ON LONGER ISSUES THE SPREAD BETWEEN THE TWO ENDS WIDENED CREATING WHAT IS KNOWN AS A STEEPER YIELD CURVE THE SPREAD BETWEEN THE YIELD ON THE TWOYEAR NOTE AND 30YEAR BOND WIDENED TO 308 PERCENTAGE POINTS YESTERDAY FROM 305 PERCENTAGE POINTS LATE TUESDAY ACCORDING TO MR COSTAS OF FIRST BOSTON EVEN LOWER LONGTERM YIELDS IN THE NEXT FEW WEEKS ARE POSSIBLE BUT THE ROAD WILL BE BUMPY THE VOLATILITY THAT WILL BE CREATED BY THE CONGRESSIONAL DEBATE ON MR CLINTON'S PROPOSED ECONOMIC PACKAGE IS GOING TO BE SIGNIFICANT ENOUGH TO CAUSE SOME PRICE SWINGS WITH LONGTERM YIELDS AT RECORD LOWS HE ADDED CORPORATE ISSUERS ARE LINED UP TO BRING NEW DEBT TO THE MARKET WHICH COULD MAKE THE RIDE EVEN BUMPIER YESTERDAY CORPORATIONS SOLD MORE THAN 1 BILLION IN NEW BONDS INCLUDING ONE OFFERING OF 200 MILLION OF 40YEAR BONDS BY TEXACO CAPITAL INC A UNIT OF TEXACO INC AS PRESIDENT CLINTON COMPLETED HIS ADDRESS TO CONGRESS YESTERDAY EVENING TREASURY BOND PRICES ROSE IN OVERSEAS TRADING IN EARLY TRADING IN TOKYO THE BENCHMARK 30YEAR TREASURY BOND ROSE AS MUCH AS 3/8 POINT FROM THE CLOSE OF THE US BOND MARKETS OR 375 FOR A BOND WITH 1000 FACE VALUE THE YIELD DROPPED TO 708 FROM 710 IN LATE US TRADING HELPING SUPPORT TREASURYS WITH INTERMEDIATE MATURITIES YESTERDAY WAS A REDUCTION IN THE AMOUNT OF FIVEYEAR NOTES THE TREASURY DEPARTMENT WILL AUCTION NEXT WEEK THE TREASURY ANNOUNCED IT WILL SELL 11 BILLION IN FIVEYEAR NOTES NEXT WEDNESDAY DOWN FROM 115 BILLION IN JANUARY ON TUESDAY TREASURY WILL SELL 1525 BILLION IN TWOYEAR NOTES UNCHANGED FROM LAST MONTH THE REDUCTION IS PART OF THIS MOVE TOWARD WHAT APPEARS TO BE A LITTLE LESS TREASURY BORROWING SAID MR WOOD OF BANK OF AMERICA IN WHENISSUED TRADING LATE WEDNESDAY THE TWOYEAR NOTE YIELDED 408 AND THE FIVEYEAR NOTE YIELDED 544 A HOST OF UTILITIES FLOATED NEW DEBT YESTERDAY TO TAKE ADVANTAGE OF LOWER INTEREST RATES BUT INVESTORS SAID THE BONDS WERE TOO EXPENSIVE MEANWHILE SECONDARY ISSUES ENDED HIGHER HIGHGRADE CORPORATES JUMPED 1/8 TO 3/8 POINT WITH TREASURYS YIELD SPREADS BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS WERE UNCHANGED TRADERS SAID JUNK BONDS ROSE AS WELL ERASING IN PART DECLINES SEEN TUESDAY WHEN HIGHYIELD BONDS SLID WITH THE STOCK MARKET IN LATE TRADING MOST JUNK BONDS WERE UP 1/8 POINT SEPARATELY BONDS OF TRANS WORLD AIRLINES ROSE ON NEWS THAT THE AIRLINE HAD FILED A REORGANIZATION PLAN WITH A US BANKRUPTCY COURT ALABAMA POWER CO A SOUTHERN CO UNIT WAS AMONG YESTERDAY'S ISSUERS RAISING 325 MILLION IN A THREEPART COMPETITIVE OFFERING GTE HAWAIIAN TELEPHONE CO A UNIT OF GTE CORP PRICED A 125 MILLION ISSUE OF 12YEAR FIRSTMORTGAGE BONDS THROUGH FIRST BOSTON CORP ILLINOIS POWER CO ALSO SOLD BONDS THE UTILITY PRICED A 235 MILLION ISSUE OF 30YEAR MORTGAGE BONDS THROUGH BEAR STEARNS & CO YET DESPITE A WIDE SELECTION OF NEW UTILITY BONDS FEW BUYERS STEPPED IN APPARENTLY BECAUSE MOST OF THE ISSUES WERE PRICED TOO EXPENSIVELY INVESTORS SAID YIELDS ON THE ISSUES WERE PRICED BETWEEN 005 PERCENTAGE POINT AND 010 PERCENTAGE POINT TOO LOW TODAY'S UTILITY DEALS SIGNAL THAT THE HIGHGRADE CORPORATE MARKET IS WAY AHEAD OF ITSELF SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT THE MASSACHUSETTS FINANCIAL BOND FUND MR KURINSKY SAID MANY OF YESTERDAY'S ISSUES WERE EXPENSIVE COMPARED WITH OUTSTANDING FINANCE AND INDUSTRIAL BONDS TRADING IN THE SECONDARY MARKET SEPARATELY TWA'S JUNK BONDS ROSE YESTERDAY AFTER THE COMPANY SAID IT INTENDED TO EMERGE FROM BANKRUPTCY PROTECTION SOON TWA 12 JUNIOR DEBENTURES DUE 2001 ROSE 3/4 POINT TO END AT 5 1/2 IN OVERTHECOUNTER TRADING TWA 1725 SENIOR NOTES DUE 1993 WERE BID AT 25 THE NOTES HAD BEEN TRADING CLOSE TO 12 SINCE EARLY JANUARY TRADERS SAID PRICES OF MUNICIPAL BONDS GENERALLY ENDED 1/8 TO 5/8 POINT HIGHER ON FOLLOWTHROUGH BUYING TO TUESDAY'S ADVANCE MUNICIPALS CONTINUED TO DRAW STRENGTH FROM EXPECTATIONS THAT MR CLINTON WOULD PROPOSE INCREASES IN FEDERAL INCOME TAXES IN HIS ADDRESS TO CONGRESS YESTERDAY EVENING MANY MARKET PARTICIPANTS EXPECT DEMAND FOR TAXEXEMPT ISSUES TO REMAIN STRONG IN THE WAKE OF THE CLINTON PROPOSALS AMONG YESTERDAY'S BIGGEST GAINERS THE CALIFORNIA PUBLIC WORKS BOARD'S 6 LEASE REVENUE BONDS OF 2018 LEASE CLOSED 5/8 HIGHER AT 98 3/4 TO YIELD 608 THERE WAS A PRETTY WARM GREETING FOR THE MORE THAN 1 BILLION OF NEW OFFERINGS PRICED YESTERDAY A LEHMAN BROTHERS GROUP WON THE FLORIDA DEPARTMENT OF NATURAL RESOURCES' 300 MILLION ISSUE OF SERIES 1993A PRESERVATION 2000 REVENUE BONDS IN COMPETITIVE BIDDING AND YIELDS WERE SET AT 350 IN 1995 TO 584 IN 2013 THERE WAS AN UNSOLD BALANCE OF 428 MILLION IN LATE TRADING LEHMAN BROTHERS SAID BONDS DUE IN 1994 1995 AND 19972013 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE 1996 BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND ALSO CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MORTGAGEBACKED PASSTHROUGHS CONTINUED TO BE IN HOT DEMAND YESTERDAY AS DEALERS SCRAMBLED TO BUY COLLATERAL TO BACK THE SLEW OF REAL ESTATE MORTGAGE INVESTMENT CONDUITS BEING BROUGHT TO MARKET NEARLY 14 BILLION IN REMICS WERE ANNOUNCED TUESDAY MOST OF WHICH WERE PRICED AT THE END OF LAST WEEK ANOTHER 850 MILLION IN NEW REMIC SUPPLY WAS ANNOUNCED YESTERDAY DEALERS ARE BEING FORCED TO BUY PASSTHROUGHS IN THE SECONDARY MARKET TO CREATE THESE DEALS BECAUSE MORTGAGE BANKERS AREN'T SELLING NEWLY ORIGINATED LOANS INTO THE MARKET TRADERS SAID PRICES OF CURRENTCOUPON SECURITIES WERE UP AS MUCH AS 13/32 YESTERDAY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR MARCH DELIVERY FINISHED 12/32 HIGHER AT 102 13/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES FINISHED 12/32 HIGHER AT 102 9/3 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FINISHED 13/32 HIGHER AT 102 3/32 DEALERS HAVE BEEN CREATING REMICS BECAUSE THE YIELD CURVE IS SO STEEP A STEEP CURVE WITH LOW SHORTTERM RATES AND HIGHER LONGTERM RATES ENABLES BANKERS TO BUY LONGTERM PASSTHROUGHS FOR LESS THAN IT COSTS TO REPACKAGE AND SELL THEM AS MULTICLASS REMICS INVESTORS HAVE BOUGHT THE SECURITIES ACCORDING TO AT LEAST ONE TRADER BECAUSE MOST OF THE NEW DEALS ARE BACKED BY 75 PASSTHROUGHS THESE ARE THE SECURITIES THAT WILL WITHSTAND THE STORM IF HOMEOWNERS REFINANCE MORTGAGE LOANS WITH THE SAME INTENSITY AS IN THE SPRING AND FALL OF LAST YEAR TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9302180030 930218 COURSE CORRECTION TIRED OF AIRLINE LOSSES AMR PUSHES ITS BID TO DIVERSIFY BUSINESS IT PLANS TO DROP SHORTHAUL UNPROFITABLE FLIGHTS AND OFFERS NEW SERVICES WE'LL EVEN MOW THE LAWNS' BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS WHAT WOULD AMR CORP BE WITHOUT AMERICAN AIRLINES POUNDED BY OVERCAPACITY THE RECENT RECESSION MURDEROUS FARE WARS AND VOLATILE FUEL PRICES THE AIRLINE INDUSTRY HAS SUSTAINED 8 BILLION IN LOSSES SINCE 1990 AMR ALONE HAS LOST 122 BILLION BUT ONLY AMR'S AIRLINE OPERATIONS HAVE HEMORRHAGED CASH EVERY OTHER AMR BUSINESS INFORMATION SERVICES DATA PROCESSING CONSULTING TRAINING INVESTMENT SERVICES AND AIRPORT SERVICES HAS MADE MONEY THAT POINT HASN'T ESCAPED SENIOR EXECUTIVES IN FACT THEY ARE REMAKING THE COMPANY IN A BOLD MOVE THAT WILL AFFECT COMPETITORS SUPPLIERS EMPLOYEES PASSENGERS AND INVESTORS THE NATION'S BIGGEST AND FIERCEST AIR CARRIER IS DIVERSIFYING AWAY FROM FLYING IT IS CONVINCED THAT SOME INDUSTRY PROBLEMS ARE INTRACTABLE AND WILL STAND IN THE WAY OF PROFIT FOR A LONG TIME WE HAVE A BUSINESS RIGHT NOW THE AIRLINE THAT DOESN'T WORK SAYS MICHAEL J DURHAM AMR TREASURER AND SENIOR VICE PRESIDENT SOMETIME IN THE INDEFINITE FUTURE IF THE AIRLINE CONTINUES TO BE SUCH A DRAG ON AMR WE'RE NOT GOING TO STAY IN THIS BUSINESS IF WE CAN'T FIND A WAY TO MAKE IT WORK SO THE COMPANY'S 1980S GROWTH PLAN CALLING FOR MORE PLANES MORE ROUTES MORE HUBS AND MORE FLIGHTS AND EMULATED BY MOST OF THE INDUSTRY HAS BEEN ABANDONED AND LAST SPRING'S FAILED ATTEMPT AT SIMPLIFYING FARES IS FADING INTO A PAINFUL MEMORY IN THEIR PLACE IS THE STRATEGY THAT AMR CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT L CRANDALL BEGINS DISCUSSING THIS WEEK WITH AMR EMPLOYEES IN A SERIES OF MEETINGS CALLED THE TRANSITION PLAN IT OUTLINES AMR'S READINESS INDEED ITS INTENTION TO CHANGE COURSE SUCH A CHANGE IS RARE AT US CORPORATIONS AND ESPECIALLY AT AN INDUSTRYLEADING COMPANY WHERE EXECUTIVES' REPUTATIONS AND CAREERS HAVE LONG BEEN MADE SIMPLY BY DOING THE SAME THING BETTER THAN ANYONE ELSE UNDER ITS NEW BLUEPRINT AMR WILL CONTINUE AGGRESSIVELY SCALING BACK ITS AIRLINE BUSINESS IT ALREADY HAS LAID OFF 576 AIRLINE MANAGEMENT EMPLOYEES SINCE NOVEMBER AND MORE LAYOFFS ARE LIKELY AS IT DIVESTS ITSELF OF SOME AIRLINE OPERATIONS FOR INSTANCE THE CARRIER WILL DUMP SHORTHOP COMPETITIVE ROUTES WHERE IT LOSES MONEY AND BEEF UP AIR SERVICE ONLY WHERE IT CAN CHARGE A PREMIUM IF OTHER AIRLINES PLAY FOLLOWTHELEADER CONSUMERS CAN EXPECT TO SEE FEWER TRAVEL CHOICES AND HIGHER TICKET PRICES AT THE SAME TIME AMR WILL EXPAND ITS PROFITABLE NONAIRLINE BUSINESSES INTERNALLY AND THROUGH ACQUISITIONS ESPECIALLY BY EXPLOITING ITS POWERFUL SABRE COMPUTERRESERVATIONS SYSTEM THE WORLD'S LARGEST PRIVATELY OWNED REALTIME COMPUTER NETWORK BECAUSE OF SABRE COMPUTERWORLD MAGAZINE IN THE PAST FIVE YEARS HAS TWICE RANKED AMR AS THE NO 1 TRANSPORTATION COMPANY FOR ITS EFFECTIVE USE OF INFORMATION SERVICES THE TIMING OF THE NEW PLAN NATURALLY RAISES THE QUESTION OF WHETHER MR CRANDALL MIGHT SIMPLY BE TRYING TO PRESSURE WASHINGTON TO ACT ON HIS REPEATED COMPLAINTS ABOUT WHAT HE PERCEIVES AS UNFAIR COMPETITION FROM FOREIGN AIRLINES AS WELL AS FROM AILING DOMESTIC RIVALS THAT KEEP FLYING ONLY WITH THE HELP OF THE BANKRUPTCY COURTS CONGRESSIONAL HEARINGS ON THE AIRLINES' FINANCIAL WOES BEGAN YESTERDAY AND TRANSPORTATION SECRETARY FEDERICO PENA APPOINTED A 15MEMBER COMMISSION ON TUESDAY TO FIND WAYS TO AID THE INDUSTRY BUT ANY WASHINGTON PROPOSALS WOULD TAKE MONTHS TO IMPLEMENT AND THEY WOULDN'T SOLVE AMERICAN'S PRESSING PROBLEMS SUCH AS MONEYLOSING SHORTHAUL DOMESTIC ROUTES MOREOVER AMR HAS ALREADY STARTED IMPLEMENTING ITS NEW PLANS THUS INDUSTRY OBSERVERS GENERALLY BELIEVE AMR IS SERIOUS ABOUT ITS NEW DIRECTION OVERALL OUR DIVERSIFICATION STRATEGY HAS BEEN TO TRY TO MAKE THE MOST OF THOSE THINGS WE HAVE LEARNED HOW TO DO IN BEING AN AIRLINE MR CRANDALL SAYS IN AN INTERVIEW RECENTLY THAT HAS INVOLVED RETRAINING TICKET PROCESSORS AT AMERICAN'S KEYPUNCH CENTER IN BARBADOS TO HANDLE MEDICAL AND INSURANCE CLAIMS FOR CLIENTS SUCH AS BLUE CROSS/BLUE SHIELD AND TRAVELERS CORP BUILDING A COMPUTERRESERVATIONS SYSTEM AND PRICING PLAN FOR THE FRENCH HIGHSPEED RAIL NETWORK AN AMR UNIT IS ABOUT TO ASSEMBLE A SIMILAR SYSTEM FOR THE CHUNNEL THE NEARLY COMPLETED TUNNEL UNDER THE ENGLISH CHANNEL SPENDING 195 MILLION FOR A STAKE IN STRUGGLING CANADIAN AIRLINES THAT GIVES AMR AN INFORMATIONSERVICES CONTRACT WORTH 2 BILLION IN REVENUE OVER 20 YEARS FOR COMPUTER RESERVATIONS ACCOUNTING DATAPROCESSING AND PRICING SERVICES AGREEING TO MANAGE THE WARSAW AIRPORT FOR THE POLISH GOVERNMENT AND TO TRAIN COMPUTER PROGRAMMERS AT AEROFLOT THE RUSSIAN AIRLINE IN NEW RESERVATIONS SOFTWARE TURKISH AIRLINES HAS HIRED AMR TO TEACH ENGLISH AMONG OTHER THINGS TO SOME OF ITS EMPLOYEES WE'LL EVEN MOW THE LAWNS AT AIRPORTS PROMISES THOMAS M METZLER PRESIDENT OF AMR SERVICES AMR ALSO PUBLISHES AN INFLIGHT MAGAZINE FOR SOUTHWEST AIRLINES AND CLEANS PLANES FOR DELTA AIR LINES JUST THIS WEEK FOR EXAMPLE AMERICAN AND AMERICA WEST AIRLINES ANNOUNCED PRELIMINARY TALKS REGARDING A JOINT MARKETING PACT AND A SEPARATE MANAGINGSERVICES AGREEMENT THOSE DISCUSSIONS COULD LEAD TO A SCENARIO IN WHICH AMERICAN ACHIEVES ALL THREE ASPECTS OF ITS TRANSITION PLAN SIMULTANEOUSLY IT COULD PULL OUT OF THE MONEYLOSING NORTHSOUTH CALIFORNIA MARKETS LEAVING LOWCOST AMERICA WEST TO FLY THOSE ROUTES IT COULD FEED AMERICAN'S TRANSPACIFIC AND TRANSCONTINENTAL FLIGHTS IN THE SAN JOSE HUB AND IT COULD SELL SERVICES TO AMERICA WEST AMR EXPECTS THAT THIS YEAR ITS NONAIRLINE BUSINESSES WILL GENERATE 240 MILLION IN OPERATING PROFITS ON 17 BILLION IN REVENUE BUT AIRLINE LOSSES COULD STILL OUTSTRIP NONAIRLINE EARNINGS EVEN THOUGH TOTAL REVENUE ABSENT MAJOR ASSET SALES OR RETRENCHMENTS WILL SURPASS LAST YEAR'S 1439 BILLION LAST YEAR THE NONAIRLINE UNITS EARNED 2163 MILLION WHILE THE AIRLINE POSTED A 2378 MILLION NET LOSS AMERICAN HAS TO BE COMMENDED FOR CHANGING COURSE SO DECISIVELY SAYS CHARLES HOFER PROFESSOR OF STRATEGY AND ENTREPRENEURSHIP AT TERRY COLLEGE OF BUSINESS AT THE UNIVERSITY OF GEORGIA THE NUMBER OF COMPANIES THAT HAVE IN ESSENCE NOT FACED UP TO THEM UNTIL THEY LITERALLY LOST ALL STOCKHOLDER VALUE IS ABSOLUTELY ASTOUNDING NOT THAT AMR FACES AN EASY TRANSITION TIMOTHY PETTEE A TRANSPORTATION ANALYST AT ALLIANCE CAPITAL MANAGEMENT IN NEW YORK PREDICTS THAT MR CRANDALL'S PLANS WILL COME UP SHORT OF THEIR GOALS INSIDE A COMPANY ACCUSTOMED TO PROJECTING AND MANIPULATING REVENUE AND PROFIT RIGHT DOWN TO ITS LAST AIRPLANE SEAT NOBODY CAN SAY HOW OR WHEN CHANGES ARE COMING IT'S IMPOSSIBLE FOR US TO TELL TO WHOM AND WHEN WE MIGHT BE ABLE TO SELL CERTAIN PARTS OF THE AIRLINE MR CRANDALL ACKNOWLEDGES SIMILARLY WE CANNOT KNOW FOR CERTAIN WHAT OPPORTUNITIES ARE OUT THERE FOR NONAIRLINE BUSINESS EITHER IN BUYING OR EXPANDING BUT VERY EAGER EMPLOYEES HAVE BEEN UNLEASHED TO FIND THOSE OPPORTUNITIES AT AMR HEADQUARTERS IN FORT WORTH PETER PAPPAS RUNS AMR CONSULTING GROUP WHICH DRUMS UP BUSINESS FOR OTHER AMR UNITS ON A WALL OF HIS WINDOWLESS OFFICE A BIG MAP OF THE WORLD IS DOTTED WITH MORE THAN THREE DOZEN PINS EACH TOPPED WITH A COLORED FLAG YELLOWS REPRESENT PROPOSALS MADE BY AMR CONSULTING GROUP WHICH NOW IS NEARLY A YEAR OLD RED MEANS A CONTRACT IS PENDING AND BLUE INDICATES PAYMENT HAS BEEN RECEIVED RIGHT NOW THERE ARE A LOT MORE YELLOWS AND REDS THAN BLUES BUT THE FLAGS ARE CHANGING QUICKLY EARLIER THIS WEEK FOR INSTANCE MR PAPPAS REPLACED A RED FLAG WITH A BLUE ONE IN TURKEY AFTER RETURNING FROM ISTANBUL WITH A SIGNED CONTRACT TO PROVIDE TURKISH AIRLINES WITH ENGLISHLANGUAGE TRAINING FOR ABOUT 576 EMPLOYEES THAT CONTRACT WAS THE CULMINATION OF EIGHT MONTHS OF EFFORT AND 10 TRIPS TO ISTANBUL BY THE 55YEAROLD MR PAPPAS DURING THAT TIME HE ALSO ACQUIRED TURKISH AIRLINES' GROUNDHANDLING BUSINESS AT NEWARK INTERNATIONAL AIRPORT IN NEW JERSEY AND PROPOSED NEW SOFTWARE FOR ITS RESERVATIONS SYSTEM ALTHOUGH MR PAPPAS'S GROUP ARRANGES SOME WORK IN THE US IN HOUSTON FOR EXAMPLE AMR DOES GROUND SERVICES AND RESERVATIONS FOR ULTRAIR A TWOMONTHOLD LUXURYAIRLINE STARTUP AMR CONSULTING FOCUSES ON OPPORTUNITIES OVERSEAS LAST YEAR HE FLEW THROUGH A SNOWSTORM TO SOUND OUT BUSINESS PROSPECTS IN MINSK THE CAPITAL OF BELARUS LATER HE MET SEPARATELY WITH AN EGYPTIAN INVESTOR AND A PAKISTANI CEMENT MANUFACTURER EACH OF WHOM WANTS TO START AN AIRLINE THIS YEAR MR PAPPAS IS CONCENTRATING ON THE PACIFIC ON TUESDAY HE HEADED TO CHINA FOR TALKS WITH GOVERNMENT AIRTRAVEL OFFICIALS THE CONSULTING GROUP HAD REVENUE OF SLIGHTLY MORE THAN 1 MILLION IN 1992 BUT MR PAPPAS SAID IN A RECENT BUSINESS PLAN HE PREPARED THAT HE EXPECTS THAT TO GROW TO 30 MILLION BY 1998 MORE IMPORTANT I THINK IT CAN FUNNEL 50 MILLION TO 75 MILLION IN BUSINESS TO OTHER AMR UNITS HE SAYS ANOTHER GROWING UNIT IS AMERICAN AIRLINES DECISION TECHNOLOGIES GROUP WHICH USES COMPUTERS TO TACKLE COMPLEX STATISTICAL PROBLEMS SUCH AS PRICING AND SCHEDULING EVEN AS AIRLINE WORKERS ARE LAID OFF DECISION TECHNOLOGIES HAS MORE THAN DOUBLED IN SIZE TO 425 PEOPLE SINCE ITS FORMATION THE GROUP STILL HANDLES AMR'S NEEDS BUT NOW DOES 60 OF ITS WORK WITH OUTSIDE CLIENTS THE US NAVY FOR INSTANCE WANTS A LARGER VERSION OF THE AMERICAN AIRLINES PILOTALLOCATION SYSTEM TO SCHEDULE TRAINING FOR HUNDREDS OF THOUSANDS OF NAVAL PERSONNEL DECISION TECHNOLOGIES BEAT OUT BOOZ ALLEN & HAMILTON INC AND MCKINSEY & CO LATE LAST YEAR FOR A BIG CONTRACT TO DESIGN CREWSCHEDULING AND AIRFAREPRICING SOFTWARE FOR LUFTHANSA AG IN 1992 DECISION TECHNOLOGIES EARNED SLIGHTLY LESS THAN 10 MILLION SAYS ITS PRESIDENT THOMAS M COOK A FORMER COLLEGE PROFESSOR WHO INITIALLY JOINED AMERICAN AS ITS OPERATIONSRESEARCH DIRECTOR AMR IS A HUGE COMPANY AND WE'RE JUST A ROUNDOFF ERROR HE SAYS WITH A SIGH HOW DO WE BECOME SIGNIFICANT THAT'S MY CONTINUAL QUEST IT HELPS THAT MOST OF AMR'S CUSTOMERS SEEM SATISFIED HOLIDAY INN WORLDWIDE ASKED DECISION TECHNOLOGIES TO DESIGN A YIELD MANAGEMENT SYSTEM FOR ITS HOTELS THEY HAVE A PROVEN TRACK RECORD WITH SUCH SYSTEMS SAYS A HOLIDAY INN SPOKESWOMAN THEY UNDERSTOOD OUR NEEDS BUT THERE'S A DOWNSIDE TO DIVERSIFICATION BOTH INSIDE AND OUTSIDE AMR NONAIRLINE OPERATIONS HAVE OCCASIONALLY STUMBLED A BRIEF FORAY INTO HOMEBANKING SERVICES IN THE MID1980S FLOPPED BECAUSE NOT ENOUGH PEOPLE HAD PERSONAL COMPUTERS AT HOME SIMILARLY AMR FAILED WITH AN ACQUISITION OF BILLING SOFTWARE FOR CABLETELEVISION COMPANIES WHEN THEY SHOWED LITTLE INTEREST IN CURBING COSTS IN ITS MOST EXPENSIVE STUMBLE SO FAR A JOINTVENTURE COMPUTERRESERVATION SYSTEM FOR HOTELS AND CARRENTAL COMPANIES FELL APART LAST YEAR IT HAD BECOME APPARENT THAT AMR PROGRAMMERS WERE MONTHS BEHIND SCHEDULE ACCORDING TO ALLEGATIONS IN A PENDING LAWSUIT BY MARRIOTT CORP ONE OF THREE PARTNERS ALL OF WHOM HAVE PULLED OUT AMR FIRED EIGHT MANAGERS SUSPENDED THE PROJECT AND TOOK A PRETAX WRITEDOWN OF 165 MILLION MAX HOPPER AMR'S SENIOR VICE PRESIDENT FOR INFORMATION SYSTEMS SAYS SIMPLY IT WAS A VERY COMPLICATED SYSTEM BUT HE THINKS IT COULD HAVE WORKED AMR FACES ANOTHER COMPLICATION AS WELL HOW TO AVOID MORALE PROBLEMS AND SERVICE DECLINES IN THE AIRLINE BUSINESS WHILE MANAGEMENT TIME AND ATTENTION ARE TURNED TOWARD NEW VENTURES RICH LAVOY A PILOT NOW IN CHARGE OF AMERICAN'S ALLIED PILOTS ASSOCIATION SAYS IT'S THE AIRLINE THAT AT SOME POINT IS PRODUCING THE CASH FLOW THAT MAKES THIS ENTREPRENEURIAL THING FUNCTION YOU CAN'T SHUT IT DOWN AND MAKE AMR A COMPUTER COMPANY ULTIMATELY HOWEVER AMR MAY HAVE HAD LITTLE CHOICE BUT TO CHANGE EVEN IF WASHINGTON DOES TRY TO HELP THE INDUSTRY WALL STREET ANALYSTS PREDICT THAT THE AIRLINE UNIT WILL STILL LIMP ALONG FOR AT LEAST THREE MORE YEARS AS LOUDLY AS AMR AND MR CRANDALL ARE DEMANDING GOVERNMENT ACTION ON ISSUES SUCH AS BANKRUPTCYLAW CHANGES AND THE FOREIGN AIRLINES THE COMPANY KNOWS IT CAN'T WAIT I THINK THAT CAPTURES THE NEW VIEW OF THE WORLDNIMBLENESS SAYS FRANCIS GOUILLART A CONSULTANT AT GEMINI CONSULTING OF MORRISTOWN NJ MR PETTEE OF ALLIANCE CAPITAL SAYS MR CRANDALL REALLY HAS EXCELLED IN CREATING VALUE OUTSIDE THE AIRLINE WALL STREET DOES NOT GIVE HIM ANY CREDIT FOR THAT AND I'M NOT SURE WALL STREET IS ALL THAT WRONG BECAUSE THE AIRLINE ISSUES ARE SO PARAMOUNT AND SO BAD LIKE AMR THE REST OF THE INDUSTRY IS STUCK CONTENDING WITH THE AIRLINE PROBLEMS BUT THOSE COMPANIES AREN'T AS WELL POSITIONED AS AMR IN TRYING TO DIVERSIFY EVEN UAL CORP'S UNITED AIRLINES WHICH HAS ITS OWN COMPUTERRESERVATIONS SYSTEM HASN'T ENTERED THE ARRAY OF BUSINESSES THAT AMR HAS THOSE CARRIERS ARE LEFT WITH LITTLE CHOICE BUT TO CUT COSTS AND CONCENTRATE ON RUNNING MORE EFFICIENTLY AND THAT RAISES A QUESTION ABOUT WHO WOULD BUY AMR'S UNWANTED AIRLINE ASSETS 9302180029 930218 CLINTON'S ECONOMIC PACKAGE A PLAN FOR CHANGE CLINTON STRESSES TAXES OVER SPENDING CUTS IN ATTACK ON DEFICIT HE PROPOSES AN ENERGY LEVY AND 160 BILLION PACKAGE OF PUBLIC INVESTMENT' RED INK IN '97 206 BILLION BY DAVID WESSEL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON REPUDIATING THE ECONOMIC POLICIES OF THE 1980S PRESIDENT CLINTON PROPOSED TO INCREASE TAXES FOR MOST AMERICANS PARTICULARLY THE RICH AND TO SHOWER BILLIONS OF DOLLARS ON FAVORED DOMESTIC PROGRAMS WHILE STILL TAKING A SIGNIFICANT SLICE OUT OF THE DEFICIT IN WHAT WAS CONSIDERED THE MOST IMPORTANT PRESIDENTIAL ADDRESS ON ECONOMIC POLICY SINCE RONALD REAGAN'S IN 1981 MR CLINTON ABANDONED HIS PLEDGE TO CUT TAXES FOR THE MIDDLE CLASS AND INSTEAD PROPOSED A BROADBASED ENERGY TAX ALTHOUGH 55 OF AMERICAN FAMILIES WILL PAY MORE TAXES OVERALL 60 OF THE TAX INCREASES WOULD FALL ON THE 2 OF FAMILIES WITH INCOMES ABOVE 200000 THEIR TAXES WOULD RISE 14 WORKING ON THE DETAILS ALMOST UP TO THE LAST POSSIBLE MOMENT MR CLINTON SHAPED A PROGRAM THAT RELIES MORE ON TAX INCREASES THAN ON SPENDING CUTS TO BRING THE DEFICIT DOWN NEARLY TO 200 BILLION BY THE END OF HIS FOURYEAR TERM THE TEST OF OUR PROGRAM CANNOT SIMPLY BE WHAT'S IN IT FOR ME MR CLINTON SAID LAST NIGHT THE QUESTION MUST BE WHAT'S IN IT FOR US UNLESS WE REDUCE THE DEFICIT INCREASE INVESTMENT AND RAISE PRODUCTIVITY SO WE CAN GENERATE JOBS HE SAID WE WILL CONDEMN OUR CHILDREN AND OUR CHILDREN'S CHILDREN TO A LESSER LIFE AND A DIMINISHED DESTINY NOTING THAT HE IDENTIFIES 150 SPECIFIC SPENDING CUTS MR CLINTON BOLDLY CHALLENGED HIS REPUBLICAN CRITICS ALL THOSE WHO SAY WE SHOULD CUT MORE BE AS SPECIFIC AS I HAVE BEEN THE NEW PRESIDENT NOW FACES A FORMIDABLE POLITICAL CHALLENGE TO PERSUADE CONGRESS AND THE PUBLIC TO ACCEPT NOT JUST THE SWEET BUT THE BITTER THE QUESTION NOW SAYS FORMER MASSACHUSETTS SEN PAUL TSONGAS AN UNSUCCESSFUL CONTENDER FOR THE DEMOCRATIC PRESIDENTIAL NOMINATION LAST YEAR IS WHETHER CONGRESS WILL SUPPORT EVEN THIS MUCH DEFICIT REDUCTION IS THE BALANCE BETWEEN SPENDING AND REVENUES GOING TO BE SUFFICIENT FOR THE AMERICAN PUBLIC ASKS CAROL COX WAIT PRESIDENT OF THE COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET A WASHINGTONBASED WATCHDOG GROUP WILL THIS TAX INCREASE REALLY GO FOR DEFICIT REDUCTION THE CLINTON PLAN INCLUDES A NEW ENERGY TAX BASED ON THE HEAT CONTENT OF FUELS THAT IS DESIGNED TO CURB USE OF RELATIVELY DIRTY FUELS LIKE COAL AND OIL THE TAX WOULD BOOST ENERGY COSTS FOR A FAMILY WITH ANNUAL INCOME OF 40000 BY 118 OR 4 THE TREASURY ESTIMATES AN INCREASE TO 36 FROM 31 IN THE MARGINAL TAX RATES FOR FAMILIES WITH TAXABLE INCOME OF 140000 OR MORE AND TO 396 FOR THOSE WITH INCOMES ABOVE 250000 MR CLINTON STRESSED IN HIS SPEECH THAT 988 OF AMERICAN FAMILIES WOULD HAVE NO INCREASE IN THEIR INCOME TAX RATES A SUBSTANTIALLY ENLARGED TAX CREDIT FOR THE WORKING POOR INCLUDING FOR THE FIRST TIME FAMILIES WITHOUT CHILDREN AND A MORE GENEROUS FOODSTAMP PROGRAM STIFF INCREASES IN CORPORATE TAXES AND NARROWER BUSINESS TAX BREAKS PARTLY OFFSET BY A REVIVED INVESTMENT TAX CREDIT DEEPER CUTS IN DEFENSE THAN PRESIDENT BUSH PLANNED TOUGH RESTRAINTS ON FEDERAL EMPLOYEES' PAY AND A SQUEEZE ON HOSPITALS THAT CARE FOR MEDICARE PATIENTS AND SIGNIFICANT INCREASES IN SPENDING FOR FAVORED DOMESTIC PROGRAMS FROM HIGHWAYS TO HEAD START THE PLAN IS FULL OF PAIN AND CONTROVERSY BUT MR CLINTON MAY HAVE FASHIONED A POLITICAL WINNING HAND HE HAS GIVEN THE AMERICAN PEOPLE LARGELY WHAT THEY SAY THEY WANT IN THE MOST RECENT WALL STREET JOURNAL/NBC NEWS POLL STRONG MAJORITIES SAID THEY WERE WILLING TO PAY HIGHER TAXES TO REDUCE THE DEFICIT AND FOR SUCH PRESSING DOMESTIC NEEDS AS EDUCATION AND HEALTH THE PACKAGE ALSO PLAYS TO THE WIDESPREAD BELIEF 77 IN THE POLL THAT UPPERINCOME AMERICANS DON'T PAY A FAIR SHARE OF TAXES AND THE MOST SIGNIFICANT CUTS COME IN DEFENSE WHERE THERE'S A BELIEF THAT THE COLLAPSE OF COMMUNISM HAS MADE CURRENT SPENDING LEVELS UNNECESSARY MR CLINTON LAST NIGHT BILLED HIS BUDGET AS GIMMICKFREE BUT IT DOESN'T APPEAR TO QUITE MEET THAT STANDARD IT DOESN'T FOR INSTANCE REFLECT AN ANTICIPATED 2 BILLION INCREASE IN THE COST OF THE SUPERCONDUCTING SUPERCOLLIDER THE TEXAS ATOMSMASHER THE ASSUMPTION IS THAT THE JAPANESE WILL PICK UP THE TAB EVEN THOUGH FORMER ENERGY SECRETARY JAMES WATKINS AND OTHERS SAY THEY PROBABLY WON'T TO SELL THE PLAN THE ADMINISTRATION IS EMBARKING ON A CAMPAIGNSTYLE EFFORT SENDING THE PRESIDENT AND HIS CABINET ON THE ROAD TO EXPLAIN THE PROGRAM TO THE PUBLIC THE CLINTON POLITICAL APPARATUS IS FAXING ACROSS THE COUNTRY SUGGESTED TEXT FOR SUPPORTERS TO USE IN CONTACTING MEMBERS OF CONGRESS I LISTENED TO WHAT THE PRESIDENT SAID IT READS IN PART AND I AM READY TO MAKE THE SACRIFICE TO SUPPORT THE PRESIDENT IN MAKING AMERICA A BETTER PLACE IN ADDITION THE PRESIDENT AND HIS TREASURY SECRETARY TEXAN LLOYD BENTSEN BOTH CALLED BILLIONAIRE POPULIST ROSS PEROT TO ENLIST HIS SUPPORT LAST NIGHT ON ABC'S NIGHTLINE MR PEROT RETURNED THE FAVOR BY GIVING A GENERALLY POSITIVE REVIEW OF MR CLINTON'S PLAN SAYING THE PRESIDENT HAD GIVEN A GOOD SPEECH A VERY POSITIVE SPEECH BUT HE WITHHELD FULL SUPPORT SAYING THAT THE DEVIL IS ALWAYS IN THE DETAILS WHICH IN THIS CASE WILL COME OVER THE NEXT FEW DAYS MR CLINTON ALSO HAS LAUNCHED A PREEMPTIVE STRIKE AGAINST WHAT HE CALLS THE DEFENDERS OF DECLINE HOPING TO RALLY THE PUBLIC AGAINST THE SPECIAL INTERESTS THAT HE FEARS WILL PICK THE PLAN APART OR WEIGH IT DOWN WITH PROVISIONS AIMED AT PROTECTING GROUPS WITH NARROW CONCERNS THE ATTACK WILL BE THAT THIS IS TAXANDSPEND BUDGET DIRECTOR LEON PANETTA SAYS MY RESPONSE IS THAT WE'VE ESSENTIALLY BEEN TAXING AND SPENDING FOR THE LAST 12 YEARS THE REPUBLICAN STRATEGY WAS TO ESSENTIALLY TAX WORKING FAMILIES TO TRY TO SHIFT THOSE RESOURCES TO THE PRIVILEGED THIS PLAN REVERSES THAT DIRECTION AS DEFICIT HAWKS LIKE MESSRS PANETTA AND BENTSEN CONVINCED MR CLINTON THAT HE HAD TO RAISE TAXES ON THE MIDDLE CLASS THE PRESIDENT'S POLITICAL ADVISERS GREW EDGY FOLLOWING THE DRAINING FRACAS OVER HOMOSEXUALS IN THE MILITARY AND THE EMBARRASSING SETBACKS IN NAMING AN ATTORNEY GENERAL MR CLINTON BEGAN TO LISTEN MORE TO HIS FORMER CAMPAIGN STRATEGISTS THEIR MESSAGE THE WEALTHY DIDN'T VOTE FOR YOU YOUR BASE IS THE MIDDLE CLASS TO INCREASE THE ODDS OF SUCCESS ON CAPITOL HILL MR CLINTON'S PLAN WAS TAILORED TO APPEAL TO DEMOCRATS AND THEIR ALLIES BY AVOIDING THE HIGHLY UNPOPULAR MOVES LIKE TAMPERING WITH SOCIAL SECURITY COSTOFLIVING INCREASES AND BY RELYING HEAVILY ON TAXES ON THE RICH THE PLAN IS EXPECTED TO PLAY WELL WITH LIBERAL DEMOCRATS AND WITH CLINTON VOTERS BUT THE SIZABLE TAX INCREASES ALSO MAKE MR CLINTON AN EASY TARGET FOR REPUBLICANS PARTICULARLY THOSE WHO ARE EAGER TO ASSOCIATE THE DEMOCRATIC PARTY WITH TAX INCREASES SENATE REPUBLICAN LEADER BOB DOLE QUICKLY ACCUSED MR CLINTON OF PROPOSING THE BIGGEST TAX INCREASE IN HISTORY IN ABSOLUTE DOLLARS BUT MR BENTSEN WAS READY FOR THAT ONE ADJUSTED FOR INFLATION HE SAYS RONALD REAGAN'S 1982 TAX INCREASE WAS BIGGER HIGHER TAXES HAVE NEVER HELPED THE ECONOMY AND NEVER WILL SAYS SEN CONNIE MACK A FLORIDA REPUBLICAN IT'S NOT WHAT AMERICA VOTED FOR FACING SUCH OPPOSITION FROM THE REPUBLICANS MR CLINTON AND TOP CONGRESSIONAL DEMOCRATS WILL NEED TO MAINTAIN STRONG PARTY DISCIPLINE TO GET THE PLAN THROUGH INTACT THE KEY NOW IS MR CLINTON'S ABILITY TO CONVINCE THE PUBLIC THAT THE PLAN IS FAIR AND HONEST AND THAT IN THE END IT WILL GO SOME WAY TOWARD SOLVING AMERICA'S DEFICIT PROBLEM THERE IS NO ONE BETTER AT EXPLAINING EDUCATING AND MOTIVATING THE AMERICAN PUBLIC SAYS FRANK GREER A MEDIA ADVISER TO THE PRESIDENT ADDS STANLEY GREENBERG THE PRESIDENT'S POLLSTER THE PUBLIC IS WAITING THEY ARE ANXIOUS BUT THEY ARE ABOVE ALL HOPEFUL THEY ARE ROOTING FOR HIM MR CLINTON CONSTRUCTED HIS ECONOMIC PLAN IN THREE SEPARATE BUILDING BLOCKS A 30 BILLION STIMULUS PLAN OF SPENDING INCREASES AND TAX CUTS FOR THE SHORT TERM A 160 BILLION PACKAGE OF PUBLIC INVESTMENT TO INCREASE PRODUCTIVITY AND ECONOMIC GROWTH OVER THE LONG RUN AND A COMBINATION OF TAX INCREASES AND REDUCTIONS IN SPENDING THAT THE ADMINISTRATION SAYS WILL TRIM FEDERAL DEFICITS BY A TOTAL OF 473 BILLION OVER THE NEXT FIVE YEARS THE PROPOSAL CARRIES SOME ECONOMIC RISKS IT INCREASES THE DEFICIT MODESTLY IN THE CURRENT FISCAL YEAR IN AN EFFORT TO AVERT ANY RECESSIONARY RELAPSE BUT THEREAFTER IT SIGNIFICANTLY RAISES TAXES AND LESS SIGNIFICANTLY CUTS GOVERNMENT SPENDING THE HIGHER TAXES COULD HAVE THE EFFECT OF SLOWING THE ECONOMY SO MR CLINTON WILL NEED SOME HELP FROM FINANCIAL MARKETS AND THE FEDERAL RESERVE TO SUSTAIN ENOUGH GROWTH TO CREATE THE EIGHT MILLION JOBS HE PROMISES OVER THE NEXT FOUR YEARS IF THERE'S ANYTHING THAT THIS PROGRAM IS DIRECTED AT IT'S INTEREST RATES NATIONAL ECONOMIC ADVISER ROBERT RUBIN SAID THIS WEEK FINANCIAL MARKETS ALREADY HAVE BID DOWN LONGTERM INTEREST RATES IN ANTICIPATION OF MR CLINTON'S DEFICITREDUCTION PLAN AND THE ADMINISTRATION EXPECTS FURTHER DECLINES IF CONGRESS ENACTS THE PACKAGE THE ADMINISTRATION ALSO IS COUNTING ON THE FED TO KEEP SHORTTERM RATES LOW OPTIMISTICALLY PROJECTING THAT THE YIELD ON THREEMONTH TREASURY BILLS WILL GRADUALLY CLIMB ONLY TO ABOUT 5 BY THE END OF 1996 YESTERDAY STOCK PRICES FIRMED IN THE WAKE OF TUESDAY'S SELLOFF WITH THE DOW JONES INDUSTRIAL AVERAGE RISING 270 POINTS TO 331219 THE BROADER MARKET ENDED MIXED BOND PRICES ROSE IN ONE OF THE MOST EMOTIONAL PASSAGES OF HIS SPEECH MR CLINTON EMPHASIZED HIS COMMITMENT TO HEALTHCARE REFORM ALL OF OUR EFFORTS TO STRENGTHEN THE ECONOMY WILL FAIL UNLESS WE ALSO TAKE THIS YEAR NOT NEXT YEAR NOT FIVE YEARS FROM NOW THIS YEAR BOLD STEPS TO REFORM OUR HEALTHCARE SYSTEM HE ALSO CALLED FOR THE SUCCESSFUL COMPLETION OF THE LATEST ROUND OF WORLD TRADE TALKS AND OF THE NORTH AMERICAN FREE TRADE AGREEMENT WITH APPROPRIATE SAFEGUARDS FOR WORKERS AND THE ENVIRONMENT MR CLINTON ALSO PLUGGED SOME OLD IDEAS LIKE DRAWING BUSINESS TO INNERCITY ENTERPRISE ZONES WITH TAX BREAKS AND HE PROMOTED SOME OF THE NEW IDEAS THAT HE CAMPAIGNED ON LIKE THE CREATION OF A NATIONAL SERVICE CORPS BUT MUCH OF THE 65MINUTE SPEECH WAS DEVOTED TO MAKING THE CASE FOR LOWER DEFICITS THE DEFICITREDUCTION PLAN GOES MUCH FURTHER THAN ANYONE WATCHING THE PRESIDENTIAL CAMPAIGN LAST FALL WOULD HAVE EXPECTED FROM THE CLINTON WHITE HOUSE THOUGH IT STILL FALLS SHORT OF SOLVING THE PROBLEM FORMER SEN TSONGAS SAYS IN THE LAST YEAR OF MR CLINTON'S TERM FISCAL 1997 WHICH BEGINS OCT 1 1996 THE PLAN SHOWS THE DEFICIT DECLINING TO 2065 BILLION ALMOST 140 BILLION BELOW THE 346 BILLION THAT THE ADMINISTRATION SAYS THE DEFICIT WOULD BE IF CURRENT POLICIES CONTINUED THE CONGRESSIONAL BUDGET OFFICE SAYS THE 1997 DEFICIT WOULD BE ABOUT 319 BILLION UNDER CURRENT POLICIES THE PROPOSAL DOESN'T MEET MR CLINTON'S CAMPAIGN GOAL OF HALVING THE DEFICIT BY THE END OF HIS TERM AND JUST MISSES A MORE RECENT GOAL OF SLICING OFF 145 BILLION WHILE ANOTHER 5 BILLION IS PEANUTS ECONOMICALLY ONE ADMINISTRATION ECONOMIC OFFICIAL SAYS THE POLITICAL IMPLICATIONS OF THE LAST 5 BILLION ARE EXCRUCIATING BY THE ADMINISTRATION'S CALCULATION THE CLINTON PLAN WOULD BRING THE FEDERAL DEFICIT DOWN TO ABOUT 27 OF THE GROSS DOMESTIC PRODUCT THE SUM OF ALL THE GOODS AND SERVICES PRODUCED IN THE NATION IN FISCAL 1997 DOWN FROM AN ESTIMATED 54 THIS YEAR MEANWHILE MR CLINTON WARNED IN THE SPEECH THAT IF WE DO NOT ACT NOW 10 YEARS FROM NOW THE DEFICIT WILL HAVE GROWN TO 635 BILLION DOLLARS A YEAR UNDER THE ADMINISTRATION'S TALLY THE PLAN WOULD RAISE TAXES BY ABOUT 250 BILLION IN THE FIVE YEARS THAT BEGIN OCT 1 AND REDUCE SPENDING FROM WHAT IT WOULD OTHERWISE HAVE BEEN BY ABOUT 220 BILLION OF THAT SPENDING RESTRAINT ABOUT 112 BILLION COMES FROM REDUCING THE DEFENSE BUDGET BELOW WHAT THE CLINTON ADMINISTRATION SAYS PRESIDENT BUSH PLANNED TO SPEND ANOTHER 556 BILLION COMES FROM SQUEEZING THE MEDICARE AND MEDICAID HEALTHCARE PROGRAMS PRIMARILY HOSPITALS DOCTORS AND OTHER HEALTHCARE PROVIDERS BY USING THAT SAVINGS TO REDUCE THE DEFICIT HOWEVER MR CLINTON WON'T HAVE IT TO FINANCE HIS COSTLY PLAN TO EXPAND HEALTHINSURANCE COVERAGE TO ALL AMERICANS THE LIKELY RESULT IS THAT GREATER TAX INCREASES WILL BE NEEDED FOR THAT HEALTHCARE PACKAGE WHICH HOUSE DEMOCRATIC LEADER RICHARD GEPHARDT OF MISSOURI AND SOME OTHERS HOPE TO COMBINE WITH THE DEFICITREDUCTION LEGISLATION THIS YEAR TO DRAW A DELIBERATE CONTRAST TO THE EARLY REAGAN BUDGETS MR CLINTON HAS BUILT HIS PLAN ON ECONOMIC ASSUMPTIONS ISSUED EARLIER THIS YEAR BY THE CONGRESSIONAL BUDGET OFFICE RATHER THAN ON THE MORE OPTIMISTIC FORECAST PREPARED BY HIS OWN ECONOMISTS TO ENHANCE THE CREDIBILITY OF THE PLAN MR CLINTON DESPITE THE OBJECTIONS OF SOME OF HIS FORMER CAMPAIGN ADVISERS BACKED AWAY FROM HIS EARLIER ASSERTION THAT THE GOVERNMENT COULD RAISE 45 BILLION OVER FOUR YEARS BY TOUGHER ENFORCEMENT OF TAX LAWS GOVERNING FOREIGN COMPANIES THE FINAL PLAN COUNTS ON 28 BILLION OVER FOUR YEARS ALTHOUGH MR CLINTON'S INABILITY TO MEET HIS OWN DEADLINE FORCED THE WHITE HOUSE TO DELAY PUBLICATION OF SOME DETAILS OF HIS PLAN UNTIL TODAY THE WHITE HOUSE DID ISSUE A LENGTHY IF SOMETIMES CONFUSING LIST OF SPECIFIC SPENDING INCREASES AND SPENDING CUTS BURIED IN THOSE LISTS WERE A FEW OF THE GIMMICKS THAT MR CLINTON CLAIMED TO HAVE AVOIDED ON THE TAX SIDE THE PLAN COUNTS ON 64 BILLION IN ADDED REVENUE OVER THE NEXT FIVE YEARS FROM AN INTERNAL REVENUE SERVICE PLAN TO GET TOUGH WITH SERVICE INDUSTRIES THAT DON'T PAY THE TAXES THEY OWE SUCH ESTIMATES HOWEVER ARE NOTORIOUSLY UNRELIABLE AND THE ADMINISTRATION ALSO OPENED ITSELF UP FOR CRITICISM PARTICULARLY IN WHAT IS LISTED AS SPENDING CUTS THE FIVEYEAR 220 BILLION TALLY OF SPENDING CUTS FOR INSTANCE INCLUDES 291 BILLION THAT THE ADMINISTRATION PROPOSES TO COLLECT BY TAXING 85 OF THE SOCIAL SECURITY BENEFITS PAID TO UPPERINCOME ELDERLY INSTEAD OF THE CURRENT 50 BUT WHEN THE TREASURY FIGURED OUT HOW MUCH OF THE HIGHER TAXES FALL ON THE RICH THIS ITEM COUNTS AS A TAX THE BUDGET ALSO INCLUDES 165 BILLION THAT THE TREASURY EXPECTS TO SAVE OVER FIVE YEARS BY BORROWING MORE AT SHORTER MATURITIES AND LESS AT LONGER MATURITIES AND ANOTHER 46 BILLION THAT IT EXPECTS TO SAVE IN INTEREST PAYMENTS BECAUSE THE DEFICIT WILL BE LOWER THAN PROJECTED TO TRY TO INCREASE THE CHANCES THAT THE PROMISED DEFICIT REDUCTION WILL OCCUR THE ADMINISTRATION WILL PROPOSE EXTENDING THE LARGELY SUCCESSFUL BUDGET MACHINERY BUILT INTO THE 1990 BUDGET LAW INCLUDING NEW CEILINGS ON SPENDING AND THE REQUIREMENT THAT ANY TAX CUTS OR BENEFIT INCREASES THAT WOULD WIDEN THE DEFICIT BE MATCHED WITH OFFSETTING TAX INCREASES OR BENEFIT REDUCTIONS DETAILS OF THE PROPOSED GET MACHINERY HAVEN'T BEEN RELEASED YET BUT THE CLINTON SPENDING PLAN IS EXPECTED TO SLIGHTLY EXCEED THE SPENDING CAPS SET IN THE 1990 LAW FOR FISCAL 1994 WHICH BEGINS OCT 1 AND SUBSTANTIALLY EXCEED THEM IN THE FOLLOWING YEAR 9302180028 930218 BUSINESS BRIEF WESTCOAST ENERGY INC WESTCOAST PETROLEUM UNIT TO BE SOLD FOR 1969 MILLION WESTCOAST ENERGY INC SAID IT AGREED TO SELL ITS OIL AND GAS PRODUCING SUBSIDIARY WESTCOAST PETROLEUM LTD TO FIVE HONG KONG INVESTORS FOR 2475 MILLION CANADIAN DOLLARS US1969 MILLION WESTCOAST BASED IN VANCOUVER BC SAID IT WANTS TO FOCUS ON ITS NATURALGAS PIPELINE AND DISTRIBUTION BUSINESSES WHICH WERE EXPANDED LAST YEAR WITH WESTCOAST'S C603 MILLION ACQUISITION OF TORONTO'S UNION ENERGY INC WHEN IT BOUGHT UNION ENERGY WESTCOAST SAID IT PLANNED TO SELL ALL OR PART OF WESTCOAST PETROLEUM THE UNIT HAS ITS OWN OIL AND GAS OPERATIONS AND ALSO OWNS AN 83 STAKE IN CANADIAN ROXY PETROLEUM LTD AN OIL AND GAS EXPLORATION CONCERN BASED IN CALGARY ALBERTA THE HONG KONG INVESTOR GROUP INCLUDES CHENG YUTUNG CHAIRMAN OF NEW WORLD DEVELOPMENT CO STANLEY HO CHAIRMAN OF SHUN TAK HOLDINGS LTD AND LEE SHAU KEE CHAIRMAN OF HENDERSON LAND DEVELOPMENT CO WESTCOAST SAID IT WILL USE THE PROCEEDS FROM THE SALE TO PAY DOWN DEBT INCURRED IN THE UNION ENERGY ACQUISITION WESTCOAST SAID THE SALE OF WESTCOAST PETROLEUM WILL RESULT IN A LOSS FROM DISCONTINUED OPERATIONS OF ABOUT C160 MILLION THE SALE IS SCHEDULED TO CLOSE MAY 5 SUBJECT TO REGULATORY APPROVALS 9302180027 930218 NORTHROP CORP RAISES QUARTERLY DIVIDEND 33 TO 40 CENTS A SHARE LOS ANGELES NORTHROP CORP RAISED ITS QUARTERLY DIVIDEND TO 40 CENTS A SHARE A 33 INCREASE FROM THE PREVIOUS 30 CENTS KENT KRESA NORTHROP'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE INCREASE REFLECTED THE COMPANY'S IMPROVED CASH FLOW AND THE BOARD'S CONFIDENCE IN OUR FUTURE FINANCIAL PERFORMANCE THE DIVIDEND IS PAYABLE MARCH 13 TO STOCK OF RECORD MARCH 1 MEANWHILE NORTHROP REPORTED FOURTHQUARTER NET INCOME OF 55 MILLION OR 117 A SHARE A YEAR EARLIER THE MILITARY CONTRACTOR HAD NET OF 159 MILLION OR 336 A SHARE THE 1991 PERIOD INCLUDED 90 MILLION IN NONRECURRING TAX CREDITS AND A 40 MILLION MARGIN RATE ADJUSTMENT ON THE B2 STEALTH BOMBER SALES SLIPPED TO 151 BILLION FROM 157 BILLION A DROP THE COMPANY ATTRIBUTED TO A DECLINE IN B2 DEVELOPMENT CONTRACT REVENUE FOR THE YEAR NORTHROP HAD NET OF 121 MILLION OR 256 A SHARE ON SALES OF 555 BILLION IN 1991 NET WAS 201 MILLION OR 426 A SHARE ON SALES OF 569 BILLION THE LATEST YEAR'S RESULTS INCLUDED A THIRDQUARTER CHARGE OF 152 MILLION OR 213 A SHARE ON A CLASSIFIED MISSILE PROGRAM NORTHROP'S SALES IN MISSILES AND UNMANNED VEHICLE SYSTEMS DROPPED TO 352 MILLION IN 1992 DOWN 37 FROM THE PREVIOUS YEAR AND ELECTRONICS REVENUE SLIPPED 78 TO 806 MILLION REFLECTING FEWER DELIVERIES THE COMPANY HAS REDUCED ITS NET DEBT 19 IN 1992 TO 280 MILLION FROM 347 AT THE BEGINNING OF THE YEAR 9302180026 930218 BUSINESS BRIEF SYNERGEN INC FIRM POSTS 4THPERIOD LOSS WARNS OF HIGHER DRUG COSTS SYNERGEN INC REPORTED A WIDENED FOURTHQUARTER LOSS OF 356 MILLION OR 143 A SHARE INCLUDING A SPECIAL CHARGE AND WARNED ANALYSTS OF INCREASED EXPENDITURES FOR THE REST OF THE YEAR AS IT MOVES TO MARKET A NEW DRUG EVEN WITHOUT THE PRETAX CHARGE OF 181 MILLION OR 72 CENTS A SHARE FOR THE ACQUISITION OF SYNERGEN DEVELOPMENT PARTNERS LTD A RESEARCH AND DEVELOPMENT PARTNERSHIP THE BOULDER COLO BIOTECHNOLOGY COMPANY TRAILED MEAN ANALYSTS' ESTIMATES OF A 35CENTASHARE LOSS FOR THE QUARTER IN THE YEAREARLIER PERIOD THE COMPANY POSTED A LOSS OF 2 MILLION OR 9 CENTS A SHARE REVENUE INCREASED 31 TO 114 MILLION FROM 87 MILLION IN A CONFERENCE CALL WITH ANALYSTS OFFICIALS SAID THE COMPANY IS PLANNING A SUBSTANTIAL INCREASE IN EXPENSES FOR SALES AND MARKETING AND FOR CONTINUED TRIALS OF ITS LEAD DRUG ANTRIL ACCORDING TO LINDA MILLER AN ANALYST WITH PAINEWEBBER INC SHE SAID SHE EXPECTS ANALYSTS TO RAISE THEIR MEAN ESTIMATE OF 1993 LOSSES TO ABOUT 3 A SHARE FROM 167 A SYNERGEN SPOKESMAN CONFIRMED THAT ACCOUNT SAYING THE INCREASED EXPENDITURES SIGNAL THAT THE COMPANY IS ON TARGET TO ANNOUNCE RESULTS IN MARCH OR APRIL OF THE PHASE III STUDY OF ANTRIL FOR USE AGAINST SEPTIC SHOCK THE EARNINGS ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF MARKETS BUT WHEN NEWS CIRCULATED THAT A CONFERENCE CALL WAS GOING TO BE HELD SHARES FELL 3 APIECE TO 4525 IN NATIONAL OVERTHECOUNTER TRADING 9302180025 930218 LETTERS TO THE EDITOR THE WORK INCENTIVE AT LAZBOY FACTORY IN REGARD TO YOUR JAN 19 PAGEONE ARTICLE MOVING ON AMERICANS WHO SEEK A FUTURE IN CALIFORNIA FIND OTHERS DEPARTING ABOUT PHILIP EBARB AND HIS REASONS FOR LEAVING CALIFORNIA YOU REFERRED TO SMALL NONUNION ENTERPRISES THAT PAY LESS AND RELY MORE ON IMMIGRANT LABOR IT IS DIFFICULT TO UNDERSTAND WHY YOU WOULD REFER TO A FORTUNE 500 COMPANY IN THIS FASHION MOST LAZBOY FACTORY EMPLOYEES RECEIVE A BASE RATE PLUS INCENTIVE PAY IF MR EBARB PROVIDED ACCURATE INFORMATION ON HIS APPLICATION FOR EMPLOYMENT AND WE BELIEVE HE DID HE LEFT UNIONIZED GENERAL DYNAMICS EARNING 835 AN HOUR AND LEFT NONUNION LAZBOY EARNING 869 AN HOUR WITH THE POTENTIAL TO EARN MORE AS FOR YOUR REFERENCE TO IMMIGRANT LABOR COMPANIES HAVE EMPLOYEE POPULATIONS THAT ARE REFLECTIVE OF THE POPULATION WHERE THEY ARE LOCATED WE WOULD SUGGEST THAT GENERAL DYNAMICS DOES THE SAME 9302180024 930218 ENTERPRISE SMALL COMPANIES REAP HARVEST FROM FOOD COMPOSTING ENTREPRENEURIAL EFFORTS AID STORES RESTAURANTS VIA LOWER DISPOSAL COSTS BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL FREEHOLD NJ ROBERT YOUNG'S BUSINESS IS PROBABLY THE QUIETEST MANUFACTURING FACILITY YOU CAN FIND AT THE ENTREPRENEUR'S 18ACRE PLOT HERE CLOUDS OF STEAM ISSUE SILENTLY FROM 75YARDLONG PILES OF ACCUMULATED LEAVES GRASS AND FOOD WASTE COUNTLESS MICROBES ARE BUSY AT WORK SILENTLY PRODUCING HEAT WATER VAPOR AND 18000 TONS OF COMPOST YEARLY THE FINISHED PRODUCT OF MR YOUNG'S AMERICAN SOIL INC COMPOST A NATURAL SOIL ENRICHER ADORED BY ORGANIC GARDENERS USUALLY IS COMMERCIALLY MADE FROM YARD TRIMMINGS AND MUNICIPAL SLUDGE BUT IN THE PAST TWO YEARS BUSINESS OWNERS SUCH AS 33YEAROLD MR YOUNG HAVE FOUND A NEW SUPPLY SOURCE FOOD WASTES FROM GROCERY STORES AND RESTAURANTS MANY BENEFIT GROCERY STORES AND RESTAURANTS FIND COMPOSTING CHEAPER THAN DUMPING THE MATERIAL IN A LANDFILL OR INCINERATOR MR YOUNG FOR EXAMPLE FIGURES THAT HIS EFFORTS HAVE HELPED AREA SUPERMARKETS CUT THEIR DISPOSAL EXPENSES BY 15 TO 50 A YEAR FURTHERMORE HE IS PAID BY THE STORES FOR REMOVING THEIR WASTE AS WELL AS BY CUSTOMERS OF COURSE WHO PURCHASE HIS COMPOST MR YOUNG AND OTHER COMPOSTERS RECEIVE A PREDICTABLE SUPPLY OF HIGHLY BIODEGRADABLE MATERIAL AND LOCALITIES LOWER THEIR WASTE DISPOSAL COSTS BY FILLING FEWER LANDFILLS FOOD COMPOSTING USED TO BE ESOTERIC SAYS MR YOUNG WHO RAN PHILADELPHIA'S RECYCLING PROGRAM BEFORE LAUNCHING HIS PARLIN NJ COMPANY IN 1986 BUT NOW HE CONTINUES THE VERY CONSERVATIVE FOOD INDUSTRY HAS REALLY GONE TO BAT FOR IT IN ADDITION SEVERAL MAJOR FASTFOOD CHAINS INCLUDING MCDONALD'S CORP DUNKIN' DONUTS INC PEPSICO INC'S KENTUCKY FRIED CHICKEN CORP AND BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC HAVE CONDUCTED PILOT COMPOSTING PROGRAMS IN THE PAST TWO YEARS SMALL FIRMS ARE STEPPING INTO THE FOOD COMPOSTING BUSINESS PARTLY BECAUSE OF LOW CAPITAL COSTS AND NEGLIGIBLE COMPETITION FROM BIGGER PLAYERS AFTER ACQUIRING SMALL PLOTS OF LAND FOR COMPOSTING FACILITIES THESE FIRMS CATER TO GROWING DEMAND FROM LANDSCAPERS GARDEN STORES AND FARMERS FOR HIGHGRADE COMPOST MR YOUNG GETS ENOUGH DISCARDED PRODUCE AND PAPER FROM AREA SUPERMARKETS TO START MAKING HIS PRODUCT WHICH IS MIXED WITH YARD WASTE HE SAYS THAT HE SELLS HIS COMPOST AT GOOD PROFITS BETWEEN 14 AND 19 A CUBIC YARD SOIL MIXED WITH HIS COMPOST HAS AN ORGANIC CONTENT OF BETWEEN 30 AND 40 SIGNIFICANTLY HIGHER THAN THE ORGANIC CONTENT OF MOST SOILS AS A RESULT AMERICAN SOIL IS GROWING ITS REVENUE REACHED 1 MILLION IN 1992 UP FROM 400000 IN 1991 SAYS MR YOUNG FOODWASTE COMPOSTING HAD TO BE PIONEERED BY SMALL COMPANIES BECAUSE THE GIANT COMPANIES ALL WENT INTO RECYCLING AND WASTE MANAGEMENT NOTES NORA GOLDSTEIN EXECUTIVE EDITOR OF BIOCYCLE MAGAZINE IN EMMAUS PA A FEW YEARS AGO BJ JONES QUIT HER JOB AS A WASTEREDUCTION PLANNER FOR THE STATE OF MAINE TO FORM COMPOST CONNECTIONS AND ENCOURAGE THE CREATION OF A COMPOSTING NETWORK AMONG FARMERS IN THE PITTSTON MAINE AREA HER FIRM ACCEPTS 12 TO 20 TONS OF FOOD WASTE A DAY FROM LOCAL HOSPITALS SCHOOLS RESTAURANTS AND MARKETS MS JONES OPERATES FROM A DAIRY FARM OWNED BY RONALD G WEBB WHO SPREADS THE MANUFACTURED COMPOST AS A SOIL ENHANCER ON HIS FIELDS MAINE HAS THE GOAL OF REDUCING WASTE DISPOSAL BY 50 IN 1994 SHE SAYS THERE WAS NO WAY YOU COULD ACHIEVE THIS WITHOUT COMPOSTING GROCERY CHAINS ARE PLEASED WITH THE GROWTH OF SMALL FOODCOMPOSTERS HANNAFORD BROTHERS CO IN SCARBOROUGH MAINE OPERATES MORE THAN 90 GROCERY STORES IN FIVE NORTHEASTERN STATES COMPANY OFFICIALS SAY THAT ABOUT A THIRD OF ITS STORES SEPARATE FOOD AND PAPER WASTE FROM THEIR PRODUCE AND BAKERY DEPARTMENTS THE WASTE THEN IS HAULED AWAY FOR COMPOSTING BY LOCAL FIRMS SUCH SOURCE SEPARATION WHICH ELIMINATES CONTAMINANTS IS KEY TO PRODUCING HIGHQUALITY COMPOST LANDFILL AND INCINERATION COSTS ARE GOING OUT OF SIGHT BUT COMPOSTING COSTS TEND TO STAY RELATIVELY CONSTANT SAYS TED BROWN HANNAFORD'S ENVIRONMENTAL MANAGER HE NOTES THAT HANNAFORD STORES SAVE ABOUT 20 PER TON OF FOOD WASTE BY PAYING TO HAVE IT HAULED FOR COMPOSTING INSTEAD OF BURNING OR BURYING IT NATIONWIDE THE INCREASED COMPOSTING OF FOOD WASTE COULD REDUCE DISPOSAL COSTS BY MILLIONS OF DOLLARS THE GROCERY INDUSTRY COMMITTEE ON SOLID WASTE AN INDUSTRY COALITION IN WASHINGTON ESTIMATES THAT US GROCERY STORES GENERATE 66 MILLION TONS OF COMPOSTABLE FOOD AND PAPER WASTES EACH YEAR DISPOSING OF THESE WASTES IN LANDFILLS OR INCINERATORS COSTS 482 MILLION ANNUALLY THE GROUP SAYS IF YOU INCLUDE WASTE FROM PRODUCE WAREHOUSES RESTAURANTS AND GIANT FOOD MANUFACTURERS THE POTENTIAL FOR COMPOSTING GROWS IMMENSE DESPITE SUCH OPPORTUNITIES MANY FOODWASTE COMPOSTERS STRUGGLE TO SUCCEED HOMEOWNERS OFTEN OPPOSE COMPOSTING FACILITIES BECAUSE OF POTENTIAL ODOR PROBLEMS AND THE POSSIBLE ATTRACTION OF RODENTS FOOD WASTE IS TRICKY TO HANDLE DECAYING QUICKLY AND EMITTING FOUL FUMES UNLESS OXYGEN IS FREQUENTLY CIRCULATED THROUGH A COMPOST HEAP PARTLY TO HELP CONTROL OFFENSIVE FUMES MOST FOOD COMPOSTERS MIX FOOD WASTE WITH LEAVES AND GRASS SOME FIRMS ALSO TRY TO REDUCE ODOR BY MOVING FACILITIES INDOORS FOOD COMPOSTERS IN SOME STATES FACE A WELTER OF RESTRICTIVE LOCAL REGULATIONS AND ANTICOMPOSTING LOBBYING EFFORTS BY LANDFILL AND INCINERATOR OWNERS MANY FOOD COMPOSTERS ARE TRYING TO PERSUADE REGULATORS THAT BECAUSE FOOD AND YARD WASTES ARE MORE BIODEGRADABLE THAN GENERAL MUNICIPAL WASTE THEY SHOULD BE REGULATED BY LESS STRINGENT RULES THESE EFFORTS ARE BEGINNING TO PAY OFF MS GOLDSTEIN OF BIOCYCLE MAGAZINE SAYS MASSACHUSETTS RECENTLY RECOGNIZED THAT FOOD WASTE IS A DIFFERENT TYPE OF COMPOSTING AND MODIFIED ITS LICENSING REQUIREMENTS FOR FOOD COMPOSTERS MAINE WASHINGTON AND NEW YORK ALSO ARE REVISING SUCH RULES AT THE SAME TIME THERE IS INCREASED ACQUISITION AND MERGER ACTIVITY AMONG SMALL FOODCOMPOSTING FIRMS SAYS CHARLES CANNON EXECUTIVE VICE PRESIDENT OF THE COMPOSTING COUNCIL IN ALEXANDRIA VA AS FOOD COMPOSTING BECOMES MORE VISIBLE THE GOVERNMENT WILL PLAY A LARGER ROLE IN ENCOURAGING IT HE PREDICTS THAT COULD MEAN A PROLIFERATION OF FOOD COMPOST HEAPS LIKE MR YOUNG'S WHICH ADJOINS A HUGE LANDFILL WHERE PRIVATE USERS ARE SPENDING 40 MILLION TO TREAT THE WASTE THAT'S THE OLD WAY MR YOUNG SAYS POINTING TO THE LANDFILL HE TURNS TO GAZE AT THE STEAMING MOUNDS OF LEAVES GRASS AND FOOD WASTE STRETCHING BELOW HIM AND THIS IS THE FUTURE 9302180023 930218 AIR FRANCE TO RECEIVE 272 MILLION INJECTION FROM CAISSE DES DEPOTS SPECIAL TO THE WALL STREET JOURNAL PARIS AIR FRANCE SAID IT WILL GET A CASH INJECTION OF 15 BILLION FRANCS 272 MILLION FROM CAISSE DES DEPOTS & CONSIGNATIONS A STATERUN FINANCIAL INSTITUTION THE STATECONTROLLED AIRLINE SAID IT PLANS TO ISSUE 750 MILLION FRANCS 136 MILLION OF BONDS REDEEMABLE IN SHARES TO WHICH CDCPARTICIPATIONS A SUBSIDIARY OF THE CAISSE DES DEPOTS WILL BE THE SOLE SUBSCRIBER THE AIRLINE WILL ALSO ISSUE 750 MILLION FRANCS OF SUBORDINATED PERPETUAL DEBENTURES WITH EQUITY WARRANTS THIS ISSUE WILL ALSO BE RESERVED FOR CDCPARTICIPATIONS THE NEW FINANCING COMES ON TOP OF A 15 BILLION FRANC BOND ISSUE FLOATED BY AIR FRANCE EARLIER THIS MONTH THE BONDS REDEEMABLE IN SHARES COME DUE AT THE END OF 1999 MEANING THAT CAISSE DES DEPOTS WILL BECOME A SHAREHOLDER OF AIR FRANCE AT THAT TIME AIR FRANCE SAID THAT FUNDING FROM CAISSE DES DEPOTS CORRESPONDS TO A SHAREHOLDING OF 75 IN THE AIRLINE THE ACTUAL SHAREHOLDING WILL BE MUCH GREATER IF THE INSTITUTION EXERCISES ITS EQUITY WARRANTS HOWEVER THE STATE REDUCED ITS DIRECT SHAREHOLDING IN AIR FRANCE LAST YEAR WHEN STATEOWNED BANQUE NATIONALE DE PARIS SUBSCRIBED TO A 125 BILLION FRANC ISSUE OF BONDS REDEEMABLE IN SHARES THAT OPERATION WILL ULTIMATELY GIVE IT THE RIGHT TO OWN 88 OF THE CARRIER AIR FRANCE BADLY NEEDS AN INJECTION OF FRESH CASH TO HELP FINANCE ITS INVESTMENTS THIS YEAR THE AIRLINE HAS SAID IT EXPECTS TO POST A LOSS OF 32 BILLION FRANCS FOR 1992 BRINGING THE ACCUMULATED LOSS OVER THE PAST THREE YEARS TO 45 BILLION FRANCS AND COMPANY OFFICIALS SAY MORE RED INK IS LIKELY IN 1993 ALTHOUGH THIS YEAR'S LOSSES COULD BE HALVED FROM LAST YEAR'S LEVEL 9302180022 930218 DIVIDEND NEWS FREMONT GENERAL CORP FREMONT GENERAL CORP OF SANTA MONICA CALIF AN INSURANCE AND FINANCIAL SERVICES HOLDING COMPANY SAID ITS BOARD APPROVED A 3FOR2 STOCK SPLIT AND AN 8 INCREASE IN THE QUARTERLY CASH DIVIDEND TO 27 CENTS A SHARE FROM 25 CENTS THE HIGHER DIVIDEND WILL BE PAID APRIL 30 TO STOCK OF RECORD MARCH 31 THE STOCK DISTRIBUTION IS SUBJECT TO APPROVAL BY SHAREHOLDERS AT THE ANNUAL MEETING IN MAY IF THE PLAN IS APPROVED THE DISTRIBUTION WILL BE MADE JUNE 22 TO STOCK OF RECORD MAY 13 THE DAY OF THE MEETING THE PRIMARY PURPOSE OF THE SPLIT IS TO EXPAND THE PUBLIC FLOAT OF SHARES AVAILABLE FOR TRADING IN ORDER TO ENHANCE THE LIQUIDITY OF THE MARKET FOR THE STOCK FREMONT SAID THERE WILL BE 123 MILLION SHARES OUTSTANDING AFTER THE SPLIT THE QUARTERLY DIVIDEND WILL BE ADJUSTED AFTER THE SPLIT TO 18 CENTS A SHARE 9302180021 930218 PEPPERAND SALT FOR THOSE OF OUR OWN WE'RE MYOPIC IT'S PLAIN TO SEE WHEN THE ECONOMY IS BAD STORES WITH GOING OUT OF BUSINESS SIGNS ACTUALLY DO COWBOY WANNABE SAGESTRUCK 9302180020 930218 BNL'S '92 PRETAX PROFIT ROSE 2 MILAN BANCA NAZIONALE DEL LAVORO SPA THE STATEOWNED ITALIAN BANK SAID PARENT COMPANY PRETAX PROFIT ROSE 2 TO 1419 TRILLION LIRE 922 MILLION IN 1992 FROM 1393 TRILLION LIRE IN 1991 GROSS OPERATING PROFIT REACHED OVER 1137 TRILLION LIRE NO COMPARABLE YEAREARLIER FIGURE WAS GIVEN BNL SAID THESE PRELIMINARY RESULTS ARE EXPECTED TO BE APPROVED BY DIRECTORS AT THEIR NEXT MEETING 9302180019 930218 THE OTHER CLINTON TEST INTERVENTION IN BOSNIA BY GEORGE KENNEY MANY PEOPLE WRONGLY TELL PRESIDENT CLINTON THAT BOSNIA WOULD RUIN HIS PRESIDENCY IF HE WERE TO INITIATE MILITARY INTERVENTION FOR POLITICAL ENDS JUST AS VIETNAM RUINED LYNDON JOHNSON'S ACCORDING TO THAT VIEW NO MATTER HOW HORRIBLE THE WAR IN THE FORMER YUGOSLAVIA BECOMES IT WILL REMAIN CONFINED TO THE BALKAN REGION NO US INTERESTS ARE AT STAKE NOT A SINGLE AMERICAN LIFE SHOULD BE SACRIFICED FOR BALKAN PEACE IF WE INTERVENE ANYWAY THE COSTS ARE PROHIBITIVELY HIGH SO THERE IS NO ALTERNATIVE TO A NEGOTIATED SETTLEMENT YES BOSNIA COULD INDEED RUIN MR CLINTON'S PRESIDENCY BUT IT IS FAR MORE LIKELY TO DO SO IF MR CLINTON DOES NOT RISE TO THE CHALLENGE AND EXERCISE LEADERSHIP ON THE WORLD STAGE SO FAR HE IS OFF TO A MIXED START ON THE POSITIVE SIDE HE AND SECRETARY OF STATE WARREN CHRISTOPHER HAVE CLEARLY IDENTIFIED MOST OF THE STAKES THAT IS FAR MORE THAN MR BUSH AND MR BAKER EVER DID ON THE NEGATIVE SIDE HE DOES NOT HAVE EVEN THE SEMBLANCE OF A PLAN HE HAS GIVEN US BUSHPLUS MR CLINTON WILL MAKE NEGOTIATIONS HIS MAIN PRIORITY YET HE IS NOT PREPARED TO USE FORCE TO BACK THEM UP THUS HE CONTINUES TO LEAVE THE INITIATIVE TO SERBIAN STRONGMAN SLOBODAN MILOSEVIC THE US SHOULD BE CONCERNED TO TRY TO RESOLVE THIS CRISIS NOW MUCH IS AT STAKE APART FROM WORTHY HUMANITARIAN CONCERNS THE WAR THREATENS THE SURVIVAL OF MULTILATERAL SECURITY ARRANGEMENTS PERHAPS WORLD PEACE IF THE WAR SPINS OUT OF CONTROL INTO THE WIDER REGION AND SOON IT WILL WITHOUT US LEADERSHIP TO MANAGE IT THE DISEASE OF NATIONALISM WILL SPREAD THROUGHOUT THE CONTINENT EUROPEAN COUNTRIES WILL DISCOVER THAT THEY HAVE TO FEND FOR THEMSELVES AS EUROPE RETURNS TO THE POLITICS OF RACE WE EXPERIENCED THAT PHENOMENON IN TWO WORLD WARS WE WOULD BE FOOLISH TO ALLOW HISTORY TO REPEAT ITSELF AGAIN ESPECIALLY SO WHEN A BREAKDOWN OF MULTILATERAL SYSTEMS WOULD ALSO FACILITATE THE PROLIFERATION OF NUCLEAR WEAPONS AND THE TECHNOLOGY TO MAKE THEM IT IS NOT OUTLANDISH TO THINK THAT MR MILOSEVIC COULD ONE DAY ACQUIRE WEAPONS OF MASS DESTRUCTION THE WEST HAS TENDED TO SERIOUSLY UNDERESTIMATE ANOTHER ISSUE AT STAKE NAMELY THAT CITIZENS OF ISLAMIC COUNTRIES ARE ENRAGED BY THE WESTERN FAILURE TO STOP SERBIAN AGGRESSION DIRECTED PRIMARILY AT MUSLIMS MANY IN THE ISLAMIC WORLD ARE QUICK TO POINT OUT THE DOUBLE STANDARD WHEN THE WEST BOMBS SADDAM HUSSEIN BUT IGNORES BOSNIA'S PLIGHT ON A PRAGMATIC LEVEL THAT MAY MEAN AN END TO THE COOPERATION OF MIDEAST STATES REGARDING IRAQ IN TURN THAT COULD JEOPARDIZE OUR ENERGY SECURITY UNFORTUNATELY THE VANCEOWEN PLAN THE ONLY PLAN UNDER SERIOUS DISCUSSION NOW IS LIKELY RESULT IN AN UNMITIGATED DISASTER ITS MOST SIGNIFICANT ASPECT IS ITS ABOLITION OF THE BOSNIAN GOVERNMENT TO BE REPLACED WITH A COUNCIL OF NINETHREE CROAT THREE SERB THREE MUSLIM HAVING A ROTATING PRESIDENCY UNDER SOME FORM OF UNITED NATIONS SUPERVISION IN THIS ARRANGEMENT BOSNIA WOULD BE BUT A SHORT STEP FROM HAVING THE WAR CRIMINAL RADOVAN KARADZIC AS PRESIDENT WE HAVE BEEN FORTUNATE UP TO NOW TO HAVE HAD MODERATE BOSNIAN LEADERS WHOM WE COULD HELP WITHOUT THEM IT WOULD BE INFINITELY MORE DIFFICULT TO ASSIST THE VICTIMS OF SERBIAN AGGRESSION TO BEAT A PLAN YOU NEED A PLAN ONE REASON MR CLINTON HAS HAD TROUBLE COMING UP WITH ONE IS THAT HE HAS RELIED HEAVILY FOR HIS COMPLETE POLICY REVIEW ON THE PEOPLE WHO PRODUCED MR BUSH'S APPROACH THESE OFFICIALS AT THE NATIONAL SECURITY COUNCIL THE STATE DEPARTMENT AND THE PENTAGON ARE CHURNING OUT THE SAME PAPER WITH THE SAME RECOMMENDATIONS AT STATE IN PARTICULAR CAREER DIPLOMATS HAVE TENDED TO EXAGGERATE THE DIFFICULTY OF GETTING EUROPEAN ALLIES TO BACK STRONGER ACTION THE EUROPEAN POWERS MUST HAVE OUR HELP AND THEY KNOW IT MR CLINTON'S FIRST TASK SHOULD BE TO TELL THEM IN RINGING TERMS THAT SERBIAN THUGGERY IS A THREAT WE CANNOT IGNORE AND THE US WILL ENGAGE IN A SOLUTION BUT ONLY ON OUR TERMS WHICH INCLUDE THE USE OF FORCE TO CONFRONT SERBIA OR EUROPE WILL HAVE TO GO IT ALONE WE SHOULD TRY TO GET THE UN OR NATO TO APPROVE INTERVENTION BUT IF THEY WON'T WE MUST FORM AN AD HOC COALITION AROUND AMERICAN LEADERSHIP INCLUDING ALLIES OUTSIDE EUROPE OUR STRATEGIC GOALS SHOULD BE SIMPLE ROLL BACK SERBIAN FORCES IN BOSNIA AND CROATIA RECOGNIZE MACEDONIA AND PROVIDE ECONOMIC AND SECURITY ASSISTANCE AND BE PREPARED TO CONTAIN SERBIAN AGGRESSION INDEFINITELY WHILE PRESSING STRONGLY FOR DEMOCRACY AND HUMAN RIGHTS IN KOSOVA TO DO THIS WE SHOULD ARM THE BOSNIANS USE AIR STRIKES AGAINST SERBIAN POSITIONS IN BOSNIA GIVE CROATIA SUPPORT TO OUST SERBIAN OCCUPIERS AND SEND LIMITED WESTERN FORCES NO MORE THAN 50000 FOR MISSIONS SUCH AS LIFTING THE SIEGE OF SARAJEVO LIBERATING CONCENTRATION CAMPS AND SEALING OFF SERBIAN RESUPPLY WE MUST BE READY TO ATTACK CENTERS OF GRAVITY WITHIN SERBIA IF THE OPERATION ESCALATES TO WAR THIS IS A MODERATELY DIFFICULT AND POSSIBLY COSTLY OPERATION THAT WE COULD BE ASSURED OF WINNING TO UNDERTAKE ANY EFFORT IN BOSNIA DIPLOMATIC OR MILITARY MR CLINTON COULD DO WORSE THAN TURN TO THE CONGRESS FOR HELP A SURPRISING BIPARTISAN CONSENSUS IS EMERGING THAT THE US SHOULD UPHOLD FUNDAMENTAL PRINCIPLES IN THE YUGOSLAV WAR DESPITE THE COST SEVERAL RESOLUTIONS ARE CIRCULATING IN THE HOUSE AND THE SENATE CALLING FOR INTERVENTION IT IS POSSIBLE THAT THE SENATE FOREIGN RELATIONS COMMITTEE WILL INTRODUCE A RESOLUTION AUTHORIZING THE USE OF FORCE JUST AS IT DID BEFORE THE GULF WAR POLITICALLY AMERICAN CALCULATIONS MAY BE MORE BYZANTINE THAN THE BALKANS CRITICS OF INTERVENTION CLAIM THE AMERICAN PEOPLE WOULD NEVER SUPPORT IT THEY WOULDN'T UNDERSTAND OR WOULDN'T CARE AND INTERVENTION COULD NOT WORK WITHOUT A STRONG CONSENSUS BEHIND IT THE LAST STATEMENT IS TRUE BUT SUCH CRITICS MAY GO TOO FAR IN SECONDGUESSING THE PUBLIC SOME OPINION POLLS SHOW THAT AN UNUSUALLY LARGE PROPORTION OF AMERICANS ARE CONCERNED AND INFORMED AND WOULD SUPPORT STRONGER ACTION THIS JOURNALIST IN AN UNSCIENTIFIC SURVEY OF THOUSANDS OF PEOPLE ACROSS THE NATION HAS FOUND A MAJORITY FAVORING INTERVENTION INDEED A FAVORABLE CLIMATE LIKELY EXISTS FOR THE PRESIDENT TO LEAD THE WAY IN SHAPING A CONSENSUS TO ACT OVER THE NEXT SEVERAL WEEKS WE SHALL SEE WHETHER MR CLINTON HAS WHAT IT TAKES TO BE A WORLD LEADER MR KENNEY IS A CONSULTANT TO THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE HE RESIGNED AS YUGOSLAV DESK OFFICER AT THE STATE DEPARTMENT IN AUGUST 1992 TO PROTEST THE BUSH ADMINISTRATION'S POLICIES 9302180018 930218 BUSINESS BRIEF MCDONNELL DOUGLAS TO FIX ENGINE FLAW IN TWO CHINA AIR JETS ST LOUIS MCDONNELL DOUGLAS CORP SAID IT IS CORRECTING AN ENGINE PROBLEM ON TWO NEW MD11 JUMBO JETS THAT HAS LED TAIWAN'S CHINA AIRLINES TO GROUND THE PLANES A SPOKESMAN AT THE MCDONNELL'S DOUGLAS AIRCRAFT CO COMMERCIALAIRPLANE UNIT IN LONG BEACH CALIF SAID THAT OF A TOTAL OF NINE INCIDENTS OF CONCERN TO TAIWANESE OFFICIALS SINCE THE PLANES WERE ACQUIRED IN NOVEMBER FIVE INVOLVED ENGINE POWER SURGES ON ENGINES MADE BY THE PRATT & WHITNEY DIVISION OF UNITED TECHNOLOGIES CORP CHINA AIRLINES PRESIDENT PETER PIEN ORDERED THE PLANES GROUNDED FOR MODIFICATIONS AS OF FRIDAY WHEN THEY RETURN FROM OVERSEAS FLIGHTS A TEAM OF OFFICIALS FROM THE AIRCRAFT MANUFACTURER AND THE ENGINE MAKER HAVE BEEN WORKING TO CORRECT THE PROBLEM BY ADJUSTING THE ANGLE OF ENGINE COMPRESSOR FAN BLADES AND BY ALTERING ENGINERELATED SOFTWARE THE DOUGLAS AIRCRAFT SPOKESMAN SAID HE SAID A SIXTH INCIDENT INVOLVED A MALFUNCTIONING CIRCUITBREAKER UNRELATED TO THE ENGINES IT WAS NEVER A SAFETYOFFLIGHT ISSUE THE SPOKESMAN SAID ADDING THAT EXTRAORDINARY POLITICAL AND CONSUMER PRESSURES ON THE AIRLINE LED TO THE GROUNDING OF THE TWO AIRPLANES A SPOKESMAN FOR PRATT & WHITNEY SAID THAT IN RECENT WEEKS THE TEAM OF ENGINEERS AND TECHNICIANS HAD FINISHED THE FANBLADE MODIFICATION AND THAT IT IS IN THE PROCESS OF CHANGING THE SOFTWARE COMPRESSOR SURGES ARE UNUSUAL BUT THEY'VE HAPPENED BEFORE AND DON'T THREATEN THE SAFETY OF THE AIRLINE OR ITS PASSENGERS THE PRATT & WHITNEY SPOKESMAN SAID HE SAID PRATT & WHITNEY HASN'T RECEIVED RELATED COMPLAINTS FROM AIRLINES OPERATING BOEING CO AND AIRBUS INDUSTRIE JETS THAT ARE POWERED BY SIMILAR ENGINES AND HASN'T HAD UNUSUAL SERVICE PROBLEMS WITH OTHER MD11 JETS FEDERAL AVIATION ADMINISTRATION OFFICIALS COULDN'T BE REACHED TO COMMENT 9302180017 930218 PORTLAND GENERAL SAYS WESTINGHOUSE MADE FAULTY GENERATORS PORTLAND ORE PORTLAND GENERAL ELECTRIC CO CHARGED WESTINGHOUSE ELECTRIC CORP WITH NEGLIGENCE AND FRAUD RELATED TO ITS DESIGN AND MANUFACTURE OF ALLEGEDLY FAULTY STEAM GENERATORS AT THE UTILITY'S TROJAN NUCLEAR PLANT THE RAINIER ORE PLANT HAS BEEN SHUT DOWN SINCE NOV 9 BECAUSE OF TECHNICAL DIFFICULTIES PORTLAND GENERAL SAID LAST MONTH IT DECIDED TO CLOSE THE FACILITY PERMANENTLY IN PART BECAUSE OF DOUBTS WITHIN THE US NUCLEAR REGULATORY COMMISSION OVER ITS SAFETY THE STEAM GENERATORS CONTAIN SERIOUS DEFECTS IN DESIGN MATERIAL AND WORKMANSHIP FAIL TO CONFORM TO PROMISES AND REPRESENTATIONS MADE BY WESTINGHOUSE AND ARE NOT SUITABLE FOR OPERATION FOR THE 40YEAR EXPECTED LIFE OF TROJAN SAYS THE COMPLAINT FILED YESTERDAY IN FEDERAL COURT IN PITTSBURGH PORTLAND GENERAL SEEKS UNSPECIFIED COMPENSATORY PUNITIVE AND TREBLE DAMAGES BASED ON ALLEGED VIOLATIONS OF FEDERAL AND STATE RACKETEERING STATUTES A WESTINGHOUSE SPOKESWOMAN SAID THAT THE CHARGES WERE WITHOUT MERIT OR FACTUAL BASIS AND THAT THE COMPANY HAD SUCCESSFULLY DEFENDED AGAINST SIMILAR ALLEGATIONS IN THE US AND MOST RECENTLY IN BRAZIL SHE SAID WARRANTIES COVERING THE PLANT RAN OUT IN THE LATE 1970S AND THAT WESTINGHOUSE HAD VERY LITTLE TO DO WITH THE PLANT FROM 1978 TO 1991 WHEN IT BEGAN WORKING WITH PORTLAND GENERAL IN AN ATTEMPT TO SOLVE THE STEAM GENERATOR PROBLEMS THE UTILITY A UNIT OF PORTLANDBASED PORTLAND GENERAL CORP OWNS A 675 STAKE IN TROJAN AND OPERATES THE PLANT THE EUGENE ORE WATER AND ELECTRIC BOARD A GOVERNMENT AUTHORITY OWNS 30 AND THE REMAINING 25 IS OWNED BY PACIFIC POWER & LIGHT CO A UNIT OF PORTLANDBASED PACIFICORP 9302180016 930218 UNITED AIR PLANS MALAYSIA SERVICE DESPITE DISPUTE BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL UNITED AIRLINES SAID IT IS PLANNING TO BEGIN PASSENGER SERVICE TO MALAYSIA VIA TOKYO DESPITE AN ONGOING DISPUTE WITH THE JAPANESE GOVERNMENT OVER THE RIGHT TO FLY ON TO OTHER DESTINATIONS THROUGH JAPAN SEPARATELY UNITED SAID IT IS PUTTING ITS 17 US FLIGHT KITCHENS UP FOR SALE AS PART OF A CONTINUING EFFORT TO CUT OPERATING COSTS AND RETURN TO PROFITABILITY UNITED A UNIT OF CHICAGOBASED UAL CORP SAID THAT BEGINNING JULY 10 IT WILL FLY THREE TIMES A WEEK FROM NEW YORK TO KUALA LUMPUR BUT THE ROUTE'S PLANNED STOPOVER AT TOKYO'S NARITA AIRPORT HAS NOT RECEIVED APPROVAL FROM JAPANESE AUTHORITIES UNITED ALREADY IS FIGHTING A RULING BY TRANSPORTATION OFFICIALS IN JAPAN THAT DENIED THE AIRLINE'S APPLICATION TO FLY FROM NEW YORK TO SYDNEY AUSTRALIA VIA TOKYO UNDER THE CURRENT BILATERAL AGREEMENT UNITED HAS THE RIGHT TO FLY TO AND BEYOND JAPAN BUT THE AIRLINE CHARGES THAT THE JAPANESE GOVERNMENT IS NOW ATTEMPTING TO LIMIT THOSE RIGHTS TWO WEEKS AGO THE US DEPARTMENT OF TRANSPORTATION ISSUED AN ORDER STATING THAT THE JAPANESE GOVERNMENT HAS DENIED UNITED RIGHTS TO WHICH IT IS ENTITLED UNDER THE BILATERAL AGREEMENT HOWEVER THE MATTER AWAITS A FINAL RULING FROM THE DEPARTMENT A UNITED SPOKESMAN SAID THAT IF JAPANESE AUTHORITIES REJECT THE CARRIER'S REQUEST TO SERVE MALAYSIA VIA TOKYO FINDING AN ALTERNATIVE PROBABLY WILL DELAY THE SERVICE CURRENTLY NO OTHER US AIRLINE FLIES TO MALAYSIA BUT WINGS HOLDINGS INC'S NORTHWEST AIRLINES UNIT ALSO HAS AUTHORITY TO SERVE THE COUNTRY UNITED SAID IT HAS HIRED FIRST BOSTON CORP TO ASSIST IN FINDING A BUYER FOR THE 17 FLIGHT KITCHENS WHICH EMPLOY 5800 PEOPLE AND PREPARE MORE THAN 125000 MEALS DAILY IN 14 CITIES FOR UNITED AND OTHER AIRLINES UNITED DIDN'T SAY HOW MUCH IT EXPECTS TO RECEIVE FROM THE SALE THE COMPANY SAID THE MOVE IS CONSISTENT WITH THAT OF MOST OTHER MAJOR US AIRLINES WHICH HAVE SOLD THEIR CATERING FACILITIES IN THE PAST FEW YEARS OUTSIDE VENDORS CAN MEET OUR CATERING NEEDS IN A MORE COSTEFFECTIVE FASHION UNITED SAID A LETTER SENT TO EMPLOYEES OF THE AIRLINE'S CATERING DIVISION HOWEVER INDICATED THAT UNITED IS BLAMING THE MOVE ON ITS LABOR GROUPS FOR REFUSING TO AGREE TO WAGE AND BENEFIT REDUCTIONS HAVING BEEN TURNED DOWN IN OUR REQUEST FOR HELP THE COMPANY MUST LOOK FOR ALTERNATIVE MEANS TO REDUCE OUR EXPENSES WROTE PATRICK W O'BRIEN THE COMPANY'S VICE PRESIDENT FOR CATERING EARLIER THIS MONTH UNITED ASKED THE UNIONS REPRESENTING ITS PILOTS MACHINISTS AND FLIGHT ATTENDANTS TO AGREE TO CONCESSIONS SO FAR THE FLIGHT ATTENDANTS AND MACHINISTS HAVE DENIED THE REQUESTS AND THE PILOTS SAY THEY ARE STUDYING THE AIRLINE'S FINANCIAL CONDITION BEFORE DECIDING 9302180015 930218 GOODRICH TO SELL 50 OF GEON VINYL UNIT IN A STOCK OFFERING AKRON OHIO THE BF GOODRICH CO SAID IT PLANS TO SELL ABOUT 50 OF ITS UNPROFITABLE GEON VINYL DIVISION IN AN INITIAL STOCK OFFERING THAT IS LIKELY TO RAISE BETWEEN 270 MILLION AND 310 MILLION NEWS OF THE PLANS FOR GEON DROVE GOODRICH'S STOCK PRICE 1125 LOWER TO CLOSE AT 51375 A SHARE ON THE NEW YORK STOCK EXCHANGE MANY INVESTORS APPARENTLY WERE DISAPPOINTED THAT GOODRICH IS CHOOSING TO SHED HALF ITS GEON STAKE JUST AS THE POLYVINYL CHLORIDE OR PVC BUSINESS IS STARTING TO REBOUND IN STEP WITH THE HOUSING MARKET SAID ROBERT GOLDBERG AN ANALYST WITH NEW VERNON ASSOCIATES INC MORRISTOWN NJ POLYVINYL CHLORIDE IS THE HARD PLASTIC USED IN PIPES FOR RESIDENTIAL HOUSING AS WELL AS OTHER APPLICATIONS OTHER INVESTORS MAY BE CONCERNED THAT GOODRICH WON'T BE ABLE TO FIND A HIGHRETURN INVESTMENT FOR THE PROCEEDS FROM THE OFFERING IN ITS SPECIALTY CHEMICAL AND AEROSPACE BUSINESSES MR GOLDBERG SPECULATED GEON WITH ABOUT 2500 EMPLOYEES IS ONE OF NORTH AMERICA'S LARGEST PVC MAKERS THE INDEPENDENCE OHIO UNIT HAS 14 PLANTS INCLUDING NINE IN THE US THREE IN CANADA AND TWO IN AUSTRALIA AND HAD NORTH AMERICAN PVC CAPACITY OF TWO BILLION POUNDS AT YEAREND SAID GOODRICH SPOKESMAN ROB JEWELL GOODRICH SAID THAT THE GEON DIVISION WHICH IT HAS SET UP AS A SEPARATE SUBSIDIARY CALLED GEON CO WILL BORROW ABOUT 200 MILLION TO MAKE A SPECIAL DISTRIBUTION TO GOODRICH PRIOR TO THE OFFERING ABOUT 30 MILLION OF GOODRICH'S EXISTING DEBT RELATING TO GEON ASSETS WILL BE ASSUMED BY GEON CO GOODRICH SAID THE GEON UNIT HAD A LOSS OF 133 MILLION LAST YEAR COMPARED WITH A 1991 LOSS OF 1308 MILLION GOODRICH REPORTED A 1992 LOSS OF 2959 MILLION OR 1190 AFTER A 2865 MILLION ACCOUNTING ADJUSTMENT 9302180014 930218 FINANCING BUSINESS LESCO INC LESCO INC CLEVELAND SAID IT IS PLANNING TO SELL 10 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES TO INSTITUTIONAL INVESTORS THE SUPPLIER OF GOLF COURSE EQUIPMENT AND LAWN SERVICE COMPANY SAID IT WILL USE PROCEEDS FROM THE OFFERING TO REDUCE BORROWINGS UNDER ITS CREDIT AGREEMENTS LESCO'S LONGTERM DEBT THE BULK OF WHICH IS MADE UP OF CREDIT AGREEMENTS WAS 455 MILLION AT YEAR END SEPARATELY LESCO REPORTED RECORD FOURTHQUARTER EARNINGS NET INCOME WAS 673926 OR 16 CENTS A SHARE ON 332 MILLION IN SALES COMPARED WITH A LOSS OF 156836 OR FOUR CENTS A SHARE ON 295 MILLION IN SALES IN THE YEAREARLIER PERIOD 9302180013 930218 WHO'S NEWS AMERICAN CYANAMID NAMES COSTELLO CHAIRMAN AND CHIEF EXECUTIVE OFFICER BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN CYANAMID CO TAPPED A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT A TIME WHEN ITS STRATEGY TO FOCUS ON PRESCRIPTION DRUGS AND LIFE SCIENCES PRODUCTS IS BEING TESTED BY THE CLINTON ADMINISTRATION'S ATTACK ON DRUG PRICES PRESIDENT ALBERT J COSTELLO A CHEMIST WHO JOINED THE COMPANY 36 YEARS AGO WAS NAMED TO SUCCEED GEORGE J SELLA JR 65 YEARS OLD WHO IS RETIRING APRIL 1 AFTER 39 YEARS WITH THE COMPANY THE APPOINTMENT OF THE 57YEAROLD MR COSTELLO WAS EXPECTED BUT THE CHANGE IN COMMAND COMES AT AN INTERESTING TIME FOR AMERICAN CYANAMID A DECADE AGO IT BEGAN PLANNING TO DIVEST ITSELF OF ITS CONSUMER AND CHEMICAL BUSINESSES TO FOCUS ON THE HIGHERMARGIN PRESCRIPTION DRUG AND LIFE SCIENCES BUSINESSES THAT STRATEGY LOOKED LIKE A SURE BULL'SEYE UNTIL PRESIDENT CLINTON MADE THE SLOWDOWN OF ESCALATING DRUG PRICES A TOP ISSUE MR COSTELLO SAID THAT DESPITE THE STOCK MARKET BEATING CYANAMID ISN'T ABOUT TO RETHINK ITS STRATEGIC GOALS LIKE MOST DRUG COMPANIES CYANAMID WITH HEADQUARTERS IN WAYNE NJ IS SENDING DROVES OF EXECUTIVES TO WASHINGTON TO ARGUE WITH ADMINISTRATION OFFICIALS AND ANYONE ELSE WHO WILL LISTEN THAT THE GOVERNMENT'S DRUG PRICE FIGURES ARE UNFAIRLY SKEWED WE HAVE TO PARTICIPATE IN THAT DIALOGUE TO BE SURE THEY DON'T DESTROY THE MOST INNOVATIVE INDUSTRY IN THE US MR COSTELLO SAYS THE CLINTON ADMINISTRATION SAYS THAT PRESCRIPTION DRUG PRICES ROSE AT SIX TIMES THE GENERAL RATE OF INFLATION BETWEEN 1980 AND 1992 MR COSTELLO CLAIMS THAT THOSE FIGURES ARE OVERSTATED AND IN ANY CASE CYANAMID IS AN EXCEPTION HE SAYS THAT AT CYANAMID PRESCRIPTION DRUG PRICES ON AVERAGE INCREASED LESS THAN 2 ANNUALLY OVER THE PAST FIVE YEARS MR COSTELLO AND OTHER DRUG INDUSTRY OFFICIALS SAY THAT IT COSTS BETWEEN 200 MILLION AND 300 MILLION IN RESEARCH AND REGULATORY COSTS TO LAUNCH A NEW DRUG CYANAMID CAN'T EXACTLY PLEAD POVERTY WHEN WASHINGTON CRITICIZES DRUG INDUSTRY PROFIT MARGINS SALES FROM ITS MEDICAL GROUP CONSISTING MAINLY OF PRESCRIPTION DRUGS VACCINES AND VITAMINS ROSE 10 TO 289 BILLION LAST YEAR FROM 264 BILLION THE SEVENTH CONSECUTIVE RECORD YEAR MEDICAL GROUP OPERATING EARNINGS ROSE 3 TO A RECORD 395 MILLION FROM 383 MILLION IN 1991 CYANAMID REPORTED RECORD NET INCOME OF 395 MILLION LAST YEAR AND RECORD REVENUE OF 527 BILLION ITS LEDERLE DIVISION MAKES SEVERAL DRUGS AND VACCINES INCLUDING POLIO VACCINES FOR CHILDREN AND A VACCINE LAUNCHED IN THE LATE 1980S THAT TREATS BACTERIAL MENINGITIS DESPITE THE PRESSURE TO CONTAIN DRUG COSTS COMING FROM WASHINGTON MR COSTELLO IS OPTIMISTIC ABOUT THE PROFITS LIKELY TO BE GENERATED BY SEVERAL NEW DRUGS THAT CYANAMID RECENTLY INTRODUCED OR EXPECTS TO INTRODUCE DURING THE COMING YEAR FOR INSTANCE THE COMPANY EXPECTS TO RECEIVE REGULATORY APPROVAL SOMETIME THIS YEAR FOR TAZOCIN AN ANTIBIOTIC THAT MR COSTELLO PREDICTS COULD EVENTUALLY PRODUCE 300 MILLION IN ANNUAL SALES LAST DECEMBER CYANAMID ANNOUNCED THAT IT HAD AGREED TO BUY A 535 STAKE IN IMMUNEX CORP A CALIFORNIA BIOTECHNOLOGY COMPANY TO BOOST ITS PRESENCE IN THAT RAPIDLY GROWING FIELD THE TRANSACTION WHICH INCLUDES FOLDING CYANAMID'S ANTICANCER DRUG BUSINESS INTO IMMUNEX IS EXPECTED TO BE VOTED ON BY IMMUNEX SHAREHOLDERS IN THE SECOND QUARTER MR COSTELLO SAID THE COMPANY DOESN'T EXPECT ANY OF IMMUNEX'S PRODUCTS TO REACH THE MARKET BEFORE 19951996 BUT THE COMPANY SHOULD BE PROFITABLE THIS YEAR BASED ON THE ANTICANCER PRODUCTS FROM CYANAMID MR SELLA WHO HAD SERVED AS CEO SINCE 1983 WILL REMAIN A DIRECTOR FRANK V ATLEE A CYANAMID EXECUTIVE VICE PRESIDENT SUCCEEDS MR COSTELLO AS PRESIDENT THE COMPANY ALSO ANNOUNCED THAT WILLIAM A LIFFERS VICE CHAIRMAN WILL RETIRE APRIL 6 9302180012 930218 CANADA AUCTIONS 625 BONDS OTTAWA THE CANADIAN GOVERNMENT AUCTIONED 18 BILLION CANADIAN DOLLARS US143 BILLION OF 625 NONCALLABLE BONDS MATURING FEB THE AVERAGE BID WAS 7106 FOR A PRICE EQUIVALENT OF 96495 PROCEEDS OF THE ISSUE WILL BE USED TO REDEEM C13 BILLION OF MATURING BONDS AND FOR GENERAL GOVERNMENT PURPOSES 9302180011 930218 US PLAN TO CUT LONGTERM BOND SALES MAY BE COSTLY IF SHORTTERM RATES JUMP BY CONSTANCE MITCHELL AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME IN RECENT HISTORY THE US GOVERNMENT IS GETTING READY TO MAKE A BIG POTENTIALLY RISKY BET ON THE DIRECTION OF INTEREST RATES THAT'S WHAT THE CLINTON ADMINISTRATION WILL BE DOING SAY ECONOMISTS IF IT GOES AHEAD WITH ITS PLANS TO REDUCE THE AMOUNT OF LONGTERM BONDS THE TREASURY DEPARTMENT SELLS WHILE BOOSTING SALES OF SHORTERTERM TREASURY SECURITIES THE GOVERNMENT CAN SELL SHORTTERM TREASURY NOTES AND BILLS AT MUCH LOWER INTEREST RATES THAN LONGTERM BONDS INDEED THE CLINTON ADMINISTRATION IS ESTIMATING THAT THE GOVERNMENT COULD SAVE 115 BILLION IN INTEREST EXPENSE OVER THE NEXT FOUR YEARS BY SHIFTING TOWARD FUNDING GOVERNMENT SPENDING WITH SALES OF SHORTERTERM SECURITIES BUT ECONOMISTS SAY THAT FOR SUCH A MOVE TO PAY OFF SHORTTERM INTEREST RATES MUST REMAIN STABLE AT LEAST IN THE NEAR FUTURE AND THEY WARN THAT ANY SUDDEN JUMP IN SHORTTERM INTEREST RATES COULD ACTUALLY COST TAYPAYERS A LOT OF MONEY THE CLINTON ADMINISTRATION MAY NOT BE SAYING LET'S BET ON INTEREST RATES' BUT THEIR DECISION IMPLIES THAT SAYS ROBERT GIORDANO AN ECONOMIST AT GOLDMAN SACHS & CO HE THINKS THE GOVERNMENT WOULD BE MAKING A MISTAKE BY LIMITING SALES OF LONGTERM BONDS THAT WIDE GAP HAS CONVINCED THE CLINTON ADMINISTRATION THAT THE GOVERNMENT COULD SAVE MONEY FOR TAXPAYERS BY RELYING MORE HEAVILY ON BORROWING WITH SALES OF SHORTTERM BILLS AND NOTES BUT ECONOMISTS AND BONDMARKET PROFESSIONALS ARE SHARPLY DIVIDED OVER WHETHER THE PROPOSED SHIFT IN DEBTMANAGEMENT STRATEGY IS A SMART ONE WILLIAM SIMON A FORMER TREASURY SECRETARY CALLS THE GOVERNMENT'S PLAN TO REDUCE SALES OF LONGTERM BONDS DUMB MR SIMON WHO WAS RESPONSIBLE FOR THE TREASURY'S MOVE IN THE 1970S TO INCREASE SALES OF LONGTERM NOTES AND BONDS SAYS THE GOVERNMENT SHOULD NOW BE SELLING MORE NOT LESS LONGTERM DEBT TO TAKE ADVANTAGE OF CURRENT LOW LONGTERM INTEREST RATES THE AVERAGE MATURITY OF THE TREASURY DEBT CONTINUES TO BE TOO SHORT AND WE SHOULD TAKE EVERY OPPORTUNITY TO EXTEND MR SIMON SAYS THAT'S JUST PRUDENT FINANCE IT'S FINANCE 101 OTHER CRITICS NOTE THAT US CORPORATIONS ARE TAKING EXACTLY THE OPPOSITE TACK FROM THE CLINTON PLAN SELLING RECORD AMOUNTS OF LONGTERM DEBT IN AN EFFORT TO LOCK IN CURRENT LONGTERM INTEREST RATES THESE RATES ARE VERY ATTRACTIVE AND WE'RE GOING OUT LONGER SAYS ROBERT ULRICH TREASURER OF TEXACO INC WHICH SOLD 200 MILLION OF UNUSUALLY LONGTERM 40YEAR BONDS YESTERDAY IT WAS TEXACO'S FOURTH OFFERING OF 40YEAR BONDS SINCE NOVEMBER 1991 UNTIL NOW THE TREASURY HASN'T TRIED TO PLAY THE WALL STREET GAME OF PREDICTING THE DIRECTION OF INTEREST RATES INSTEAD THE GOVERNMENT HAS SAID IT'S IMPORTANT FOR THE TREASURY TO BE PREDICTABLE IN ITS BORROWING PATTERN SO AS NOT TO SPOOK THE CREDIT MARKETS AND DRIVE UP THE TREASURY'S BORROWING COSTS GOLDMAN'S MR GIORDANO CONCEDES THAT THE GOVERNMENT COULD SEE MODEST SAVINGS FROM ITS NEW STRATEGY OVER THE SHORT RUN BUT HE ARGUES THAT THE FUNDAMENTAL OBJECTIVE OF DEBT MANAGEMENT IS TO MINIMIZE THE COST OF FINANCING FOR TAXPAYERS OVER A LONG PERIOD OF TIME NOT AT ANY MOMENT IN TIME CURRENTLY THE TREASURY FUNDS THE GOVERNMENT'S SPENDING NEEDS BY SELLING A MIX OF SECURITIES TREASURY BILLS WITH VERY SHORT MATURITIES OF ONE YEAR OR LESS INTERMEDIATETERM NOTES WITH MATURITIES OF TWO YEARS TO 10 YEARS AND LONGTERM BONDS THAT MATURE IN 30 YEARS THE GOVERNMENT'S BORROWING NEEDS ARE HUGE IT SOLD ABOUT 660 BILLION OF NOTES AND BONDS LAST YEAR MAINLY TO ROLL OVER OR REFINANCE MATURING TREASURY SECURITIES BUT ALSO TO FUND THE GOVERNMENT'S BIG BUDGET DEFICIT IN ADDITION THE GOVERNMENT SELLS ABOUT 20 BILLION THREEMONTH AND SIXMONTH BILLS EACH WEEK WHICH REPRESENTS THE LARGE BULK OF GOVERNMENT BORROWING THE IDEA OF CURTAILING SALES OF LONGTERM BONDS FIRST SURFACED LAST YEAR WHEN THE BUSH ADMINISTRATION PRESSED BY MEMBERS OF CONGRESS AND ACADEMIC ECONOMISTS REDUCED THE AMOUNT OF 30YEAR BONDS SOLD AT THE GOVERNMENT'S QUARTERLY REFUNDING AUCTIONS TO 10 BILLION FROM 11 BILLION LAST WEEK THE GOVERNMENT CUT THE SIZE OF THE 30YEAR BOND SALE AGAIN TO 9 BILLION PROPONENTS OF PARING BACK SALES OF 30YEAR BONDS EVEN FURTHER ARGUE THAT THE MOVE WOULD NOT ONLY SAVE TAXPAYERS MONEY BUT ALSO HELP TO BRING DOWN LONGTERM INTEREST RATES REDUCING THE SUPPLY OF LONGTERM BONDS THEY REASON WOULD GIVE THESE SECURITIES A SCARCITY VALUE CAUSING LONGTERM INTEREST RATEST TO DECLINE LACY HUNT CHIEF ECONOMIST AT CARROLL MCENTEE & MCGINLEY INC A UNIT OF HONGKONG & SHANGHAI BANK SUGGESTS THAT A SUBSTANTIAL MOVE BY THE TREASURY TO CURB SALES OF LONGTERM DEBT COULD BRING DOWN LONGTERM INTEREST RATES AS MUCH AS ONEHALF OF A PERCENTAGE POINT THE CLINTON ADMINISTRATION HASN'T DISCLOSED ITS NEW BORROWING PLANS INCLUDING HOW MUCH IT WOULD REDUCE LONGTERM BOND SALES BUT MR HUNT RECOMMENDS THAT THE TREASURY SUSPEND SALES OF SEVENYEAR TREASURY NOTES AND SHARPLY CURTAIL SALES OF 30YEAR BONDS FOR A PERIOD OF SIX MONTHS TO ONE YEAR OR UNTIL THE ECONOMY SHOWS SIGNS OF ROBUST GROWTH TO FILL IN THE GAP HE SAYS THE TREASURY SHOULD HAVE BIWEEKLY AUCTIONS OF ONEYEAR TREASURY BILLS IT'S NOT A PERMANENT SOLUTION BUT IT IS AN INTERIM DEVICE TO PRODUCE SHORTTERM SAVINGS MR HUNT SAID BUT HE ADDED I HAVE ALWAYS VIEWED THE COST SAVINGS AS A SECONDARY ASPECT MORE IMPORTANT IS THAT THIS APPROACH WOULD GET LONGTERM INTEREST RATES DOWN AND HELP TO REVITALIZE A POORLY PERFORMING ECONOMY THE CLINTON ADMINISTRATION DOES EXPECT EXPECT SHORTTERM RATES TO RISE GRADUALLY IN COMING YEARS OFFICIALS ARE PREDICTING THAT THE YIELD ON THREEMONTH TREASURY BILLS COULD RISE TO 5 BY THE END OF MR CLINTON'S FIRST TERM IN 1996 IF THE ECONOMY CONTINUES TO GROW SLOWLY SHORTTERM INTEREST RATES COULD STAY RELATIVELY LOW ECONOMISTS SAY BUT IF THE EOCNOMY REBOUNDS SHARPLY THEN SHORTTERM RATES COULD BE EXPECTED TO RISE SWIFTLY AND THAT WOULD QUICKLY BOOST THE TREASURY'S BORROWING COSTS MARIA RAMIREZ PRESIDENT OF MARIA FIORINI RAMIREZ INC ALSO FAVORS A MOVE BY THE CLINTON ADMINISTRATION TO REDUCE SALES OF LONGTERM DEBT SHE SAYS OTHER WALL STREET FIRMS OPPOSE THE PROPOSAL IN PART BECAUSE THERE IS A LOT OF RESISTANCE ON WALL STREET TO ANY CHANGES BECAUSE THE STATUS QUO IS THE COMFORTABLE WAY TO BE 9302180010 930218 CLINTON'S ECONOMIC PACKAGE TAX PROPOSALS TARGET ENERGY USE AND THE RICH BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED A TAX PACKAGE THAT WOULD HIT THE RICH PARTICULARLY HARD ALTHOUGH NOTABLY IT WOULDN'T RAISE THE TAX RATE FOR CAPITAL GAINS IN ADDITION THE PLAN WOULD WHACK EVERYONE WITH A NEW BROADBASED TAX ON ENERGY CONSUMPTION THIS TAX WOULD PINCH FAMILIES THAT MAKE AS LITTLE AS 30000 A YEAR AMONG OTHER THINGS IT WOULD DRIVE UP THE PRICE OF GASOLINE BY 25 CENTS A GALLON IN THE FIRST YEAR IT TAKES EFFECT BUT THE PLAN WOULD OFFSET THE ADDED BURDEN ON THE WORKING POOR BY GIVING THEM A GENEROUS TAX BREAK SIMILARLY THE PROPOSAL WOULD RAISE THE TOP CORPORATE INCOME TAX RATE BUT IT WOULD OFFER A HOST OF PROVISIONS DESIGNED TO SPUR INVESTMENT AND RESEARCH OUT OF THIS BALANCING ACT CRAFTED TO BRING IN 24493 BILLION IN ADDITIONAL REVENUE OVER SIX YEARS MR CLINTON HOPES TO CONVINCE AMERICANS THAT HE HAS FULFILLED HIS POPULIST PROMISE TO MAKE THE TAX SYSTEM FAIRER AND MORE EFFICIENT TO THAT END THE PLAN CALLS FOR A SERIES OF STEPS TO SQUEEZE MORE FROM UPPERINCOME PEOPLE TO RAISE A WHOPPING 18147 BILLION FROM THEM MORE THAN HALF THE NEW REVENUE TO BE GENERATED THE PACKAGE WOULD RAISE THE TOP MARGINAL TAX RATE TO 36 FROM 31 AS EXPECTED THE NEW TOP BRACKET WOULD APPLY TO COUPLES WITH TAXABLE INCOME OF MORE THAN 140000 A YEAR AND INDIVIDUALS WITH TAXABLE INCOME OF MORE THAN 115000 THIS CHANGE WOULD BE RETROACTIVE TO JAN 1 IMPOSE A 10 SURTAX FOR PEOPLE WITH TAXABLE INCOME OF MORE THAN 250000 EFFECTIVELY RAISING THEIR MARGINAL TAX RATE TO 396 HOWEVER THE MAXIMUM CAPITALGAINS TAX RATE WOULD REMAIN 28 TREASURY OFFICIALS EXPLAINED THAT THE CAPITAL GAINS RATE WAS KEPT THE SAME BECAUSE AT LEAST SOME ANALYSTS AT THE DEPARTMENT WERE CONCERNED THAT RAISING IT ACTUALLY MIGHT REDUCE REVENUE MOREOVER SAID ONE OFFICIAL THIS ADMINISTRATION ALREADY HAS ITS HANDS FULL WITH THIS PACKAGE AND THE LAST THING IT WANTS TO ENGAGE IN IS A POLITICAL BATTLE OVER CAPITAL GAINS EXTEND CERTAIN LIMITS ON ITEMIZED DEDUCTIONS AND PERSONAL EXEMPTIONS THAT WERE SET TO EXPIRE IN 1996 AND 1997 SUBJECT ALL WAGES TO THE MEDICARE PAYROLL TAX THE 29 TAX WHICH IS SPLIT EQUALLY BETWEEN EMPLOYERS AND EMPLOYEES CURRENTLY APPLIES ONLY TO WAGES UP TO 135000 A YEAR THE PROPOSED CHANGE WOULD HIT THE HIGHESTPAID 2 OF WORKERS FOR INSTANCE SOMEONE EARNING 400000 WOULD HAVE TO PAY AN EXTRA 3842 A YEAR TO UNCLE SAM THIS PROVISION WOULD TAKE EFFECT JAN 1 1994 RAISE THE TOP ESTATE TAX RATES TO 53 AND 55 BRINGING THEM BACK TO WHERE THEY HAD BEEN UNTIL THIS YEAR WHEN THEY BOTH DROPPED TO 50 THE 53 RATE APPLIES TO ESTATES WITH ASSETS OF MORE THAN 25 MILLION AND THE 55 RATE APPLIES TO ESTATES WITH ASSETS OF MORE THAN 3 MILLION THIS PROVISION WOULD BE RETROACTIVE TO JAN 1 CUT BACK SEVERAL BUSINESSRELATED DEDUCTIONS TYPICALLY TAKEN BY EXECUTIVES THE PLAN WOULD REDUCE THE DEDUCTIBLE PORTION OF BUSINESS MEALS AND ENTERTAINMENT EXPENSES TO 50 FROM 80 IT ALSO WOULD ELIMINATE THE DEDUCTION FOR CLUB DUES AND DISALLOW MOVING DEDUCTIONS FOR MEALS AND REAL ESTATE EXPENSES THIS WOULD TAKE EFFECT JAN 1 1994 ALTER THE TAX TREATMENT OF EXECUTIVE COMPENSATION FIRST THE PROPOSAL WOULD DISALLOW DEDUCTIONS CLAIMED BY CORPORATIONS FOR EXECUTIVE PAY OF MORE THAN 1 MILLION FURTHER IT WOULD REDUCE TO 150000 THE AMOUNT OF COMPENSATION THAT COMPANIES CAN TAKE INTO ACCOUNT WHEN CALCULATING EXECUTIVES' PENSION BENEFITS THAT WOULD QUALIFY FOR FAVORABLE TAX TREATMENT THE CURRENT CAP IS 235840 THESE PROVISIONS ALSO WOULD TAKE EFFECT NEXT JAN 1 THE PLAN'S OTHER BIG MONEY RAISER WOULD BE THE TAX ON ENERGY THIS LEVY DESIGNED TO TAKE IN 22 BILLION A YEAR WHEN IT FULLY TAKES EFFECT WOULD BE BASED ON THE HEAT CONTENT OF FUELS AS MEASURED IN BRITISH THERMAL UNITS TREASURY OFFICIALS SAID THE TAX WAS DESIGNED TO HIT HARDEST THE ENERGY SOURCES THAT MOST HURT THE ENVIRONMENT AND THAT ARE NOT AS VITAL TO NATIONAL SECURITY ACCORDINGLY THEY SAID THE TAX SHOULD DRIVE UP THE PRICE OF COAL THE MOST AND NATURAL GAS THE LEAST BUT IN AN APPARENT ATTEMPT TO SMOOTH OUT SOME OF THE DISADVANTAGE FOR THE POLITICALLY POWERFUL COAL INDUSTRY OIL WOULD FACE A HIGHER TAX RATE SPECIFICALLY THE TAX WOULD HIT COAL NATURAL GAS AND NUCLEAR ENERGY AT A RATE OF 257 CENTS PER MILLION BTUS AND OIL AT A RATE OF 599 CENTS PER MILLION BTUS HYDROELECTRICITY WOULD BE TAXED USING A SEPARATE FORMULA BASED ON ITS FOSSILFUEL INPUT THE TREASURY SAID SOLAR WIND AND GEOTHERMAL POWER WOULD BE EXEMPT FROM THE TAX WERE THE ENERGY TAX FULLY PHASED IN BY FISCAL 1996 AS PROPOSED IT WOULD ADD 75 CENTS TO A GALLON OF GASOLINE ACCORDING TO TREASURY CALCULATIONS THE PRICE OF HEATING OIL WOULD RISE 825 CENTS A GALLON THE PRICE OF NATURAL GAS WOULD RISE 2625 CENTS PER THOUSAND CUBIC FEET AND AN AVERAGE MONTHLY ELECTRIC BILL OF 67 WOULD GO UP BY 225 FISCAL 1996 BEGINS OCT 1 1995 TREASURY OFFICIALS ESTIMATE THAT A TYPICAL FAMILY OF FOUR EARNING 25000 A YEAR WOULD SEE ITS TOTAL ANNUAL ENERGY BILL INCREASE 105 TO 2347 A FAMILY MAKING 40000 WOULD SEE ITS ENERGY BILL RISE 118 TO 2688 AND A FAMILY WITH INCOME OF 60000 WOULD SEE ITS ENERGY BILL GO UP 133 TO 3103 ON TOP OF THIS A 25CENTAGALLON SLICE OF THE FEDERAL GASOLINE TAX WHICH WAS DUE TO EXPIRE IN SEPTEMBER 1995 WOULD BE MADE PERMANENT UNDER THE CLINTON PLAN TO EASE THE BURDEN OF THE NEW ENERGY TAX ON THE WORKING POOR THE PLAN WOULD GREATLY ENHANCE THE EARNED INCOME TAX CREDIT A PROGRAM THAT WAS ESTABLISHED IN THE MID1970S TO HELP OFFSET SOCIAL SECURITY AND MEDICARE TAXES ON WORKING POOR FAMILIES TREASURY OFFICIALS SAID THAT THE IMPACT ON LOWINCOME HOUSEHOLDS ALSO WOULD BE MITIGATED BY INCREASES IN A FEDERAL ENERGYASSISTANCE PROGRAM AND FOOD STAMPS AS A FURTHER INCENTIVE TO HELP THOSE IN DOWNTRODDEN NEIGHBORHOODS THE PLAN ALSO SEEKS TO ESTABLISH 50 ENTERPRISE ZONES AREAS IN WHICH EMPLOYERS AND INVESTORS WOULD BE ENTITLED TO SPECIAL TAX BREAKS THE PLAN INCLUDES A VARIETY OF PROVISIONS AIMED AT RAISING MORE REVENUE FROM THE BUSINESS COMMUNITY IN PARTICULAR IT WOULD INCREASE THE TOP CORPORATE TAX RATE TO 36 FROM 34 FOR TAXABLE INCOME ABOVE 10 MILLION TREASURY OFFICIALS SAID THAT ONLY ABOUT 2700 OF THE NATION'S 22 MILLION CORPORATIONS WOULD BE AFFECTED BY THIS CHANGE WHICH IS SUPPOSED TO BE RETROACTIVE TO JAN 1 THEY SAID SOME 95 WON'T FEEL ANY IMPACT AT ALL DISALLOW DEDUCTIONS FOR LOBBYING EXPENSES OFFICIALS SUGGESTED THAT THIS PROVISION WOULD APPLY ONLY TO THOSE TRYING TO INFLUENCE LEGISLATION NOT TO THOSE TESTIFYING BEFORE GOVERNMENT BODIES OR COMMENTING ON GOVERNMENT REGULATIONS REQUIRE SECURITIES DEALERS TO VALUE THEIR INVENTORIES AT MARKET PRICES RATHER THAN USING MORE ADVANTAGEOUS ACCOUNTING METHODS THIS PROVISION WHICH WAS SOUGHT BY PRESIDENT BUSH WOULD BE EFFECTIVE FOR TAX YEARS ENDING ON OR AFTER DEC 31 LIMIT A CREDIT THAT ALLOWS COMPANIES TO MANUFACTURE PRODUCTS IN PUERTO RICO VIRTUALLY TAX FREE THE CHANGE WOULD PREVENT THE CREDIT FROM EXCEEDING 65 OF THE WAGES A COMPANY PAYS IN ITS PUERTO RICAN OPERATIONS THIS MEASURE WHICH WOULD BE PHASED IN WOULD HIT THE PHARMACEUTICAL INDUSTRY PARTICULARLY HARD PROHIBIT THRIFT INSTITUTIONS FROM TAKING CERTAIN TAX WRITEOFFS IF THEY HAVE BEEN COMPENSATED BY THE FEDERAL SAVINGS AND LOAN INSURANCE CORP THIS ALSO WAS SOUGHT BY THE BUSH ADMINISTRATION EXTEND A SET OF RULES GOVERNING ESTIMATED TAX PAYMENTS MADE BY BUSINESSES THAT EXPIRE AT THE END OF 1996 PULL IN MORE TAXES FROM MULTINATIONAL COMPANIES ONE PROVISION WOULD CHANGE THE WAY OIL COMPANIES CAN USE THE FOREIGN INCOME TAX CREDIT SO THAT THEY CAN'T AS EASILY SHELTER INCOME EARNED OFFSHORE ANOTHER WOULD MAKE COMPANIES DOCUMENT MORE EXPLICITLY HOW THEY TRANSFER ASSETS BETWEEN UNITS AT HOME AND ABROAD A CHANGE DESIGNED TO PREVENT THEM FROM IMPROPERLY AVOIDING US TAX LIABILITY ON TOP OF THAT THE TREASURY SAID IT WOULD DOUBLE THE NUMBER OF INTERNAL REVENUE SERVICE AGENTS THAT POLICE SUCH TRANSACTIONS THE TAX PLAN WOULDN'T JUST TAKE FROM COMPANIES HOWEVER IT WOULD GIVE THEM INCENTIVE TO INVEST AS WELL FOR EXAMPLE THE ADMINISTRATION CALLED FOR PROVIDING LARGE BUSINESSES WITH A 7 INVESTMENT TAX CREDIT LASTING TWO YEARS TO QUALIFY COMPANIES WOULD HAVE TO INVEST SIGNIFICANTLY MORE IN EQUIPMENT THAN THEY DID OVER A BASE PERIOD FOR SMALL BUSINESSES THE TAX CREDIT WOULD BE 7 THE FIRST TWO YEARS AND DROP TO 5 THEREAFTER THE PLAN ALSO WOULD EXTEND PERMANENTLY A TAX CREDIT FOR CORPORATE RESEARCH AND PROVIDE LIMITED CAPITALGAINS TAX RELIEF FOR PEOPLE WHO INVEST IN SMALL BUSINESSES AND HOLD ON TO THEIR INVESTMENTS FOR AT LEAST FIVE YEARS IT ALSO WOULD REVIVE A POPULAR PROVISION ALLOWING PEOPLE IN THE REAL ESTATE INDUSTRY TO TAKE DEDUCTIONS FOR SOCALLED PASSIVE LOSSES TO OFFSET INCOME FROM OTHER ACTIVITIES AND IT WOULD EXTEND THE FAVORABLE TAX TREATMENT OF MORTGAGE REVENUE BONDS PERMANENTLY 9302180009 930218 CLINTON'S ECONOMIC PACKAGE LOBBYISTS INTEREST GROUPS GIRD FOR FIGHT TO TRY TO DEFEAT OR MODIFY PROPOSALS BY GERALD F SEIB AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BRYAN LITTLE AN OFFICIAL OF THE US BUSINESS AND INDUSTRIAL COUNCIL KNOWS JUST WHAT HIS GROUP WILL DO WITH THE CLINTON ECONOMIC PLAN WE'RE PRETTY MUCH GOING TO DO EVERYTHING WE CAN TO KILL IT OR AT LEAST MODIFY IT MR LITTLE DECLARED YESTERDAY TOWARD THAT END HE'S PREPARING A MAILING TO THE 1500 SMALL AND MEDIUMSIZED BUSINESSES THAT BELONG TO THE COUNCIL ANALYZING THE PLAN AND SUGGESTING WAYS TO FIGHT ITS TAX PROVISIONS TO LOBBYISTS AND INTEREST GROUPS THROUGHOUT WASHINGTON PRESIDENT CLINTON'S PRESENTATION OF HIS ECONOMIC PLAN WAS LIKE THE SOUNDING OF A STARTER'S GUN TRIGGERING A MAD RACE TO BOLSTER PUBLIC AND LEGISLATIVE OPPOSITION TO ITS MOST CONTROVERSIAL ELEMENTS COMPANIES LARGE AND SMALL HAVE FORMED COALITIONS TO FIGHT THE PROPOSED BROADBASED ENERGY TAX THE NATIONAL ASSOCIATION OF MANUFACTURERS HAS SCHEDULED A MEETING TODAY TO DEBATE WHAT ACTION TO TAKE ON THE PROPOSED CORPORATE TAX INCREASE SENIOR CITIZENS' GROUPS ARE GENERATING LETTERS AND PHONE CALLS TO CONGRESS TO FIGHT INCREASED TAXATION OF SOCIAL SECURITY BENEFITS BUT THE SOAKTHERICH POPULIST OVERTONES OF THE CLINTON PLAN WILL GIVE THE WHITE HOUSE AN OPENING TO SPUR POPULAR SUPPORT AT THE NATION'S GRASS ROOTS TO FIGHT BACK AND SOME SPECIAL INTERESTS AND EVEN A FEW BUSINESS INTERESTS WILL BE HELPING THE WHITE HOUSE IN THAT CAUSE WHILE THE PLAN WAS BEING CRAFTED FOR INSTANCE A COALITION OF ENVIRONMENTAL GROUPS CALLED 20000 ENVIRONMENTAL ACTIVISTS AROUND THE US URGING THEM TO PRESSURE THE WHITE HOUSE TO STICK WITH ITS PLANS FOR AN ENERGY TAX THAT KIND OF EFFORT NOW NEEDS TO BE TURNED ON CONGRESSMEN SAID DAVID DONIGER A SENIOR ATTORNEY AT THE NATURAL RESOURCES DEFENSE COUNCIL THIS IS GOING TO BE A BIG EFFORT OVER COMING MONTHS AT THE SAME TIME THE DEMOCRATIC NATIONAL COMMITTEE IS LAUNCHING A PROADMINISTRATION LOBBYING CAMPAIGN WHICH BEGAN LAST NIGHT WITH HUNDREDS OF HOUSE PARTIES AROUND THE COUNTRY AT WHICH DEMOCRATS GATHERED TO WATCH MR CLINTON'S TELEVISED SPEECH THE COMMITTEE IS COUNSELING DEMOCRATIC ACTIVISTS ON HOW TO GENERATE PRESSURE ON CONGRESS IN SUPPORT OF THE CLINTON PROGRAM AND DAVID WILHELM A CLOSE CLINTON CONFIDANT WHO IS THE DEMOCRATS' NEW NATIONAL CHAIRMAN HAS MET WITH REPRESENTATIVES FROM A WIDE RANGE OF TRADITIONAL DEMOCRATIC ORGANIZATIONS IN THE PAST FEW DAYS AND USED THE GETACQUAINTED SESSIONS IN PART TO MUSTER SUPPORT FOR THE CLINTON PACKAGE AMONG THE GROUPS ARE THE AMERICANS FOR DEMOCRATIC ACTION PUBLIC CITIZEN THE ORGANIZATION LED BY CONSUMER ACTIVIST RALPH NADER AND COMMON CAUSE THE SELFSTYLED CITIZEN'S LOBBY THE ADMINISTRATION'S EFFORT TO GATHER SUPPORT FOR THE PACKAGE IS HELPED BY ITS DECISION TO INCLUDE ITEMS BUSINESS GROUPS CLEARLY FAVOR SUCH AS A PASSIVELOSS DEDUCTION FOR REAL ESTATE AND A CAPITALGAINS TAX BREAK FOR NEW SMALL BUSINESSES THOSE CARROTS COULD PRODUCE SOME BUSINESS LOBBYING IN FAVOR OF THE CLINTON PLAN WE WANT TO BE SUPPORTIVE HE'S CLEARLY REACHING OUT SAID ED HATCHER OF THE AMERICAN ELECTRONICS ASSOCIATION WHOSE MEMBERS STAND TO BENEFIT BOTH FROM THE RESEARCH AND DEVELOPMENT TAX CREDIT AND CAPITALGAINS PROVISIONS AND ON THE SPENDING SIDE THE ADMINISTRATION'S INVESTMENT IN SCIENCE AND NEW TECHNOLOGY APPEALS TO THE SAME CONSTITUENCY CLEARLY THERE ARE A LOT OF POSITIVE THINGS IN THERE SAID MR HATCHER AND SOME BUSINESS GROUPS ARE DECIDING FOR TACTICAL REASONS TO TURN DOWN THEIR LOBBYING EFFORTS THE AMERICAN TRUCKING ASSOCIATIONS FOR INSTANCE HAD BEEN BEATING THE DRUM LOUDLY TO KILL ANY PLANS FOR A GASOLINE TAX NOW THAT MR CLINTON HAS CHOSEN AN ENERGY TAX THAT DOESN'T TARGET JUST GASOLINE USERS WE WILL NOT BE ON THE LEAD IN TRYING TO KILL A BROADBASED ENERGY TAX SAID THOMAS DONOHUE PRESIDENT OF THE ASSOCIATIONS IN GENERAL THOUGH THE BUSINESS COMMUNITY HAS UNDERLYING CONCERNS ABOUT THE TAX PORTIONS OF THE PACKAGE WHICH ARE ONLY COMPOUNDED BY THE FEAR THAT MORE TAXES WILL BE REQUIRED WHEN THE CLINTON ADMINISTRATION'S HEALTHCARE PACKAGE EMERGES LATER THIS YEAR BEYOND THE NEW PLAN'S GENERAL TAX PROVISIONS THERE ARE SPECIFIC PROPOSALS THAT DIRECTLY AFFECT NARROWER INTERESTS LIKELY TO FIGHT BACK A PROPOSAL TO REDUCE A TAX BREAK FOR PRODUCTS MADE IN PUERTO RICO FOR INSTANCE PARTICULARLY AFFECTS DRUG COMPANIES AND TOUCHES COMPANIES SUCH AS COCACOLA CO THE ISSUE ALSO HAS BEEN AN EMOTIONAL ONE FOR NEW YORK'S PUERTO RICAN COMMUNITY WHICH COULD INFLUENCE SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN WHO IS UP FOR REELECTION NEXT YEAR MOREOVER SOME PROVISIONS OF THE CLINTON PLAN ARE LIKELY TO PUSH SPECIAL INTERESTS INTO COMPETITION WITH EACH OTHER IN AN EFFORT TO APPEASE COALPRODUCING STATES FOR INSTANCE THE ADMINISTRATION MAY HAVE STUMBLED INTO A PROBLEM WITH OIL INTERESTS THE BROADBASED ENERGY TAX IS CRAFTED TO HIT OIL PRODUCTS MORE HEAVILY THAN COAL WHICH IS PROVOKING COMPLAINTS FROM OIL CONSUMERS AND MARKETERS THIS TILT AGAINST OIL WILL HAVE A REGIONAL IMPACT SAID JOHN BUCKLEY A FORMER NEW ENGLAND OIL EXECUTIVE WHO NOW IS A REPRESENTATIVE FOR THE NEW ENGLAND FUEL INSTITUTE IT'S A SLAP IN THE FACE OF GEORGE MITCHELL THE MAJORITY LEADER'S HOME STATE IS MAINE WHICH IS HEAVILY DEPENDENT ON OIL FOR HEATING AND ELECTRICITY IN THE FINAL IRONY IN THE UNFOLDING LOBBYING ONSLAUGHT LOBBYISTS WILL HAVE TO FIGHT FOR THEIR OWN WELLBEING EVEN AS THEY FIGHT ON BEHALF OF THEIR CLIENTS THAT'S BECAUSE LOBBYISTS ARE DIRECTLY TARGETED BY A PROVISION ELIMINATING THE CORPORATE DEDUCTION FOR LOBBYING 9302180008 930218 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PROPOSED TAX INCREASES FOR MOST AMERICANS TO PAY FOR NEW PROGRAMS AND TO TRIM THE BUDGET DEFICIT THE PACKAGE WOULD HIT THE RICH HARD BUT WOULDN'T RAISE THE CAPITALGAINS TAX RATE THE TOP MARGINAL RATE FOR INDIVIDUALS WOULD RISE TO 36 FROM 31 WHILE THOSE WITH TAXABLE INCOME OF MORE THAN 250000 WOULD BE SUBJECT TO A 10 SURTAX CLINTON ALSO PROPOSED AN ENERGY TAX BASED ON THE HEAT CONTENT OF FUELS AND AN EXPANSION OF THE EARNED INCOME TAX CREDIT THE PLAN CALLS FOR 16 BILLION IN EXTRA SPENDING IN THE CURRENT FISCAL YEAR BUT 138 BILLION LESS OVER THE NEXT FOUR YEARS CLINTON PROPOSES CUTTING DEFENSE SPENDING BY ABOUT 76 BILLION OVER FOUR YEARS AND HEALTHCARE AND OTHER MANDATORY SPENDING BY ANOTHER 76 BILLION ANALYSTS SAID THE PLAN MAY NOT LEAD TO SUSTAINED GROWTH TREASURY SALES OF LONGTERM BONDS WOULD BE REDUCED AND SALES OF SHORTERTERM SECURITIES WOULD BE INCREASED UNDER A PLAN PROPOSED BY CLINTON THE ADMINISTRATION ESTIMATES IT COULD SAVE 115 BILLION IN INTEREST EXPENSE OVER FOUR YEARS UNDER THE PROPOSAL STOCK PRICES STABILIZED FOLLOWING TUESDAY'S BIG SELLOFF THE DOW JONES INDUSTRIALS GAINED 270 POINTS TO 331219 BUT SMALL STOCKS FELL AGAIN WITH THE NASDAQ COMPOSITE INDEX TUMBLING 596 TO 65943 BONDS ROSE AMR IS DIVERSIFYING IN AN EFFORT TO IMPROVE ITS PROFITS THE COMPANY'S AMERICAN AIRLINES UNIT HAS BEEN A BIG MONEY LOSER BUT ITS NONAIRLINE BUSINESSES HAVE BEEN PROFITABLE HOUSING STARTS FELL 72 IN JANUARY AFTER A REVISED 48 RISE IN DECEMBER THE CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION SAID THE JANUARY REPORT COULD SIGNAL THAT THE HOUSING PICKUP IS PETERING OUT DOW CORNING CONFIRMED THAT A FEDERAL GRAND JURY IS LOOKING INTO THE COMPANY'S HANDLING OF POTENTIALLY DAMAGING INFORMATION ABOUT ITS EARLIER PRODUCTION OF SILICONE BREAST IMPLANTS ALBERT CASEY SAID HE WILL RESIGN AS HEAD OF THE RESOLUTION TRUST CORP HE HAS BEEN THE SUBJECT OF A CONTROVERSY OVER HOW THE RTC CONDUCTED THE TAKEOVER OF FAILED THRIFT INSTITUTIONS OPEC'S AGREEMENT TO CUT PRODUCTION REFLECTS A GOAL BY SAUDI ARABIA FOR OIL PRICES IN A RANGE OF 18 TO 22 A BARREL CRUDE OIL FUTURES PRICES DECLINED THE AFLCIO PLANS TO LIFT SANCTIONS AGAINST THE TEAMSTERS UNION MARKING AN END TO BITTER JURISDICTIONAL BATTLES BETWEEN THE NATION'S BIGGEST UNION AND THE REST OF ORGANIZED LABOR THE CFTC CHARGED Z LOU GUTTMAN THE CHAIRMAN OF THE NEW YORK MERCANTILE EXCHANGE WITH CIVIL VIOLATIONS OF COMMODITY LAWS CHINA HAS INVITED FOREIGN COMPANIES TO BID FOR RIGHTS TO DEVELOP OIL FIELDS IN NORTHERN AND WESTERN CHINA AMERICAN CYANAMID NAMED ITS PRESIDENT ALBERT J COSTELLO CHAIRMAN AND CHIEF EXECUTIVE AT A TIME WHEN THE FIRM'S STRATEGY TO FOCUS ON PRESCRIPTION DRUGS AND LIFE SCIENCES PRODUCTS IS BEING TESTED BY THE ADMINISTRATION'S ATTACK ON DRUG PRICES HEWLETTPACKARD POSTED A FISCAL FIRSTQUARTER PROFIT OF 261 MILLION COMPARED WITH A YEAREARLIER LOSS OF 30 MILLION REFLECTING STRONG SALES OF PRINTERS AND WORKSTATIONS TWA HAS MOVED CLOSER TO EMERGING FROM CHAPTER 11 IT FILED A PLAN CALLING FOR ELIMINATING ABOUT 4 BILLION IN CLAIMS THE DISTRIBUTION OF NEW COMMON AND PREFERRED STOCK TO THE AIRLINE'S CREDITORS AND EMPLOYEES AND THE ISSUANCE OF NEW DEBT SECURITIES BONDS LEHMAN BROTHERS TREASURY INDEX 488299 UP 2701 COMMODITIES OIL 1933 A BARREL OFF 20 CENTS DOW JONES FUTURES INDEX 12524 UP 002 SPOT INDEX 12536 UP 021 9302180007 930218 MAYOR OF MOSCOW SPIDER THE METALHEAD IS READY TO SERVE ROCKERS AND NATIONALISTS JOIN POLITICAL FORCES UNITED BY HATREDS AND NOSTALGIA BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW DRESSED IN A BLACK TSHIRT TIGHT JEANS AND JACKBOOTS SERGEI TROITSKY ALIAS SPIDER TAKES A BREAK FROM A STUDIO RECORDING SESSION TO DISCUSS HIS BAND'S LATEST HIT THE SONG KILL THE SUNAREFA IS A FRENZIED ELECTRIFIED CALL FOR ETHNIC CLEANSING SPIDER WANTS SUNAREFA SLANG FOR DARKSKINNED MINORITIES FROM THE SOUTH DRIVEN OUT OF RUSSIA AND IN THIS THE INTENSE LONGHAIRED HEAVYMETAL ROCK STAR SEEMS TO HAVE STRUCK A CHORD WITH HIS ADOLESCENT FANS THE KIDS USED TO SCREAM AT US TO SING RUSSIAN VODKA' SAYS SPIDER REFERRING TO THE FORMER SIGNATURE TUNE OF HIS BAND KORROZIA METALLA NOW ALL THEY WANT IS KILL THE SUNAREFA' AFTER THE LAST CONCERT HEAVYMETAL FANS TOOK TO THE STREETS OVERTURNING CARS AND TORCHING KIOSKS MANNED BY SWARTHY NONRUSSIAN SHOPKEEPERS WHILE AUTHORITIES ARE ALARMED BY HEAVY METAL'S ABILITY TO INCITE SUCH ANGER AND VIOLENCE RUSSIA'S POLITICAL OPPOSITION SMELLS AN OPPORTUNITY AND SO A BIZARRE ALLIANCE IS FORMING BETWEEN NATIONALISTIC FORMER SOVIET COMMUNISTS IN THEIR CHEAP POLYESTER SUITS AND RUSSIA'S TRASH ROCKERS IN BLACK LEATHER AND CHAINS AT THE MOSCOW EDITORIAL OFFICES OF THE ULTRACONSERVATIVE NEWSPAPER DEN OR DAY DEPUTY CHIEF EDITOR VLADIMIR BONDARENKO SPENDS HIS DAYS TAKING POTSHOTS AT THE REFORMIST GOVERNMENT OF RUSSIAN PRESIDENT BORIS YELTSIN THE PAPER CHAMPIONS EXTREMIST ANTIWESTERN CAUSES A RECENT EDITORIAL FOR EXAMPLE ACCUSES THE WEST OF ACTIVELY PLOTTING TO STARVE TO DEATH HALF OF RUSSIA'S PEOPLE DEN'S NATURAL AUDIENCE ELDERLY RUSSIAN NATIONALISTS WHO MOURN THE BREAKUP OF THE SOVIET EMPIRE IS SHRINKING THUS MR BONDARENKO'S TASK IS TO RECRUIT YOUTH TO THE CAUSE OF REBUILDING A GREAT SLAVIC NATION ONE APPROACH TAPPING INTO THE ANGRY PASSION OF RUSSIA'S HEAVYMETAL CROWD WE'RE OPPOSITION AND THEY'RE OPPOSITION SAYS MR BONDARENKO WE NEED THEM THEY NEED US WITH HIS DRAB SUIT AND TIE AND NEATLY TRIMMED HAIR THE BESPECTACLED MR BONDARENKO WHO WAS TRAINED AS A CHEMICAL ENGINEER SEEMS MORE AT HOME IN THE BOOKLINED OFFICES OF DEN THAN IN MOSCOW'S ROCK CLUBS BUT TO GET INTO THE YOUTH PSYCHE THE 46YEAROLD EDITOR IS MAKING TENTATIVE FORAYS INTO MUSICAL WORLDS THAT UNTIL RECENTLY HE DIDN'T KNOW EXISTED HEAVY METAL TRASH METAL DEATH METAL I'M NOT EXACTLY A BIG FAN OF HEAVY METAL BUT YOU CAN'T DENY THAT IT'S AN INTRINSIC PART OF RUSSIAN CULTURE SAYS MR BONDARENKO DEN SURPRISED READERS WHEN IT RECENTLY LAUNCHED A REGULAR BACKPAGE COLUMN CALLED ROCK THE RUSSIAN RESISTANCE UNLIKE THE PLODDING IDEOLOGICAL ESSAYS OR THE HYSTERICAL CONSPIRATORIAL TRACTS THAT FORM THE BULK OF THE PAPER THE ROCK ARTICLES ARE FASTPACED AND TRENDY THEY DON'T SHY FROM COVERING RUSSIA'S RAUNCHIEST HEAVYMETAL ACTS LIKE EXORCIST AND DEATH VOMIT THERE ARE OTHERS BRIDGING THE GAP BETWEEN HEAVYMETAL FANS AND THE ULTRANATIONALISTS SERGEI ZHARIKOV THE 37YEAROLD FORMER DRUMMER AND VOCALIST OF THE NOWDEFUNCT POSTPUNK BAND DK SERVES AS YOUTH ADVISER TO THE NATIONAL RADICAL PARTY AN EXTREME RIGHTWING WHITE SUPREMACIST GROUP THE PARTY NOMINATED SPIDER AS AN OFFICIAL CANDIDATE FOR MOSCOW'S COMING MAYORAL ELECTIONS HE'S POPULAR AND HE'S CHARISMATIC SAYS MR ZHARIKOV A TALL AND BROADSHOULDERED MAN WITH MOIST BLUE EYES MY HUNCH IS THAT PEOPLE IN MOSCOW ARE READY FOR A HEAVY METALIST FOR MAYOR DK ONCE RANKED AMONG RUSSIA'S MOST INNOVATIVE BANDS RAILING AT COMMUNISM TODAY MR ZHARIKOV HAS EMBRACED A NEW CAUSE RACE WAR IF MR ZHARIKOV WERE IN CHARGE RUSSIA WOULD EXPEL ALL AZERIBAIJANIS ARMENIANS GEORGIANS AND OTHERS FROM THE SOUTH HE APPLAUDS THE RECENT BURNING OF SEVERAL AZERIRUN KIOSKS I SUPPORT THIS IT'S FAIR AND HE WOULD BOOT OUT THE THOUSANDS OF AFRICAN UNIVERSITY STUDENTS IN RUSSIA ALL THEY DO IS SPREAD AIDS ON HIS VEST MR ZHARIKOV WEARS A SILVER SKULL REPRESENTING NAZI GERMANY'S SECRET POLICE A PRESENT FROM AN AMERICAN WHITE SUPREMACIST THE POLITICIAN HE MOST ADMIRES IS DAVID DUKE THE FORMER KU KLUX KLANSMAN OF LOUISIANA POLITICS WE ARE READY FOR A HOLY WAR A REAL ONE NOT JUST A REVOLUTION SAYS MR ZHARIKOV THE METALHEADS REPRESENT A SOCIAL LAYER OF THE POPULATION THAT WE CAN COUNT ON THE POWERS THAT BE ARE DOOMED IT'S UNCLEAR TO WHAT EXTENT THE ULTRANATIONALIST RIGHT IS SUCCEEDING IN COURTING YOUNG SOULS AND SO FAR THE YELTSIN GOVERNMENT HAS HAD LITTLE TO SAY PUBLICLY ABOUT THE EMERGING THREAT MR BONDARENKO CLAIMS THAT 50 OF RUSSIA'S HEAVYMETAL KIDS ARE OURS WHILE MR ZHARIKOV SAYS THREE MILLION PEOPLE IN MOSCOW ABOUT A THIRD OF THE CITY'S POPULATION WOULD SUPPORT SPIDER'S CANDIDACY FOR MAYOR A HIGHLY QUESTIONABLE CLAIM MASHA VOLKENSTEIN OF VALIDATOR YANKELOVICH A MOSCOWBASED MARKETRESEARCH COMPANY ESTIMATES THAT ONEFIFTH OF RUSSIA'S 20 MILLION YOUNG ADULTS ARE ATTRACTED TO THE INCREASINGLY INTOLERANT VIEWS OF HARDLINE NATIONALISTS AND THAT THE FIGURE IS GROWING WHAT FUELS THE APPEAL EXPERTS AGREE IS THE FRUSTRATION MANY FEEL AS ONCEMIGHTY RUSSIA FLOUNDERS BETWEEN THE AGGRESSIVE SURENESS OF ITS COMMUNIST PAST AND AN UNCHARTED FUTURE MOSCOW'S HEAVYMETAL HEADQUARTERS IS DAVAIDAVAI A GRUNGY RECORD STORE THAT FOR TWO YEARS HAS OPERATED OUT OF THE STAIRWELLS AND TOP FLOOR OF A DILAPIDATED RESIDENTIAL BUILDING A TAPEDUP POSTER TOUTS A CONCERT FOR METAL BAND DIV TITLED MEIN KAMPF BEFORE MAJOR CONCERTS THE BUILDING'S LARGE COMMUNAL COURTYARD PLASTERED WITH ROCK GRAFFITI BECOMES A MEETING GROUND FOR THOUSANDS OF METALHEADS THEY TEND TO FORM AN ANGRY MOB SHOPKEEPERS NEARBY CONSTANTLY MUST REPLACE WINDOWS RANDOMLY SMASHED BY THE CROWDS THE STORE'S MANAGER IS VASILY BOYARINTSEV 40 A BUSINESSMAN AND ROCK AFICIONADO SINCE HIS SHOP IS USUALLY JAMMED WITH RUSSIAN HEAVYMETAL KIDS MR BOYARINTSEV IS WELL PLACED TO JUDGE THE EXTENT TO WHICH RUSSIA'S NATIONALISTS ARE GETTING THROUGH HEAVY METAL IS PRETTY ROUGH STUFF AND IT'S ALWAYS BEEN HARD TO FIT IT INTO A DEMOCRATIC SCHEME HE SAYS THE RIGHT IS GETTING THROUGH TO THE YOUNG WHO FEEL LEFT OUT OF THINGS NOWADAYS MR BOYARINTSEV WHO CONTRIBUTES ARTICLES TO DEN HOPES TO SEE A STRONG RIGHTWING GOVERNMENT TAKE OVER IN RUSSIA PICTURES OF HITLER AND SADDAM HUSSEIN LINE HIS OFFICE WALLS HE RESPECTS VLADIMIR ZHIRINOVSKY A PROMINENT OUTSPOKEN HARDLINE NATIONALIST MR ZHARIKOV THE RETIRED ROCKER INTRODUCED MR ZHIRINOVSKY TO THE HEAVYMETAL WORLD A FEW MONTHS AGO TAKING HIM TO A HARDCORE MOSCOW CLUB MR ZHIRINOVSKY WARMED UP TO THE SCENE TOOK OFF HIS SHIRT AND BEGAN DANCING AMID A CRUSH OF YOUNG PEOPLE THERE ARE OF COURSE PLENTY OF METALHEADS WHO AREN'T MAKING A POLITICAL STATEMENT LUCIFER A SOFTSPOKEN 21YEAROLD BLOND HAS BEEN HOOKED ON METAL SINCE HE HEARD AN AC/DC TAPE AS A CHILD NOW HE PERFORMS OFTEN ALONGSIDE NAKED AND TATTOOED FEMALE DANCERS IN STAGE SHOWS THAT ACCOMPANY KORROZIA METALLA'S CONCERTS FOR ME IT'S JUST FINE MUSIC HE SAYS BUT FOR SPIDER THE BAND'S 26YEAROLD BASS PLAYER AND LYRICIST HEAVY METAL IS POLITICS RUSSIAN SOCIETY IS GETTING MORE AND MORE ANGRY SAYS SPIDER WHO SPEAKS IN SHORT MONOTONE BURSTS IT'S SOMETHING LIKE GERMANY DURING THE WEIMAR REPUBLIC BEFORE HITLER CAME TO POWER IN KILL THE SUNAREFA SPIDER TRIES TO CAPTURE THE DEEP HATRED MANY RUSSIANS FEEL TOWARD THE SOCALLED SOUTHERN MAFIA BUSINESS GROUPS FROM THE SOUTH WHO CONTROL MUCH OF MOSCOW'S RETAIL TRADE THE SONG HE SAYS DESCRIBES ANIMALS DESCENDING FROM THE HILLS BRINGING POISONED VEGETABLES AND FRUITS TO MOSCOW WHEN THE BEASTLY MUGS COME DOWN FROM THE MOUNTAINS SPIDER WRITES RUSSIAN GUNS SHOULD SHOOT THEM BUT SPIDER DOESN'T WANT TO BE MISUNDERSTOOD END YOUR ARTICLE THIS WAY HE SAYS WE WANT EVERYONE TO BE KIND AND LIVE IN PEACE BASICALLY WE'RE PEACEFUL PEOPLE 9302180006 930218 BANK OF BOSTON UNITS GET HIGHER RATINGS ON LONGTERM DEBT NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED ITS RATINGS ON BANK OF BOSTON CORP AND TWO OF ITS BANK SUBSIDIARIES AFFECTING ABOUT 2 BILLION OF LONGTERM DEBT THE AGENCY SAID THE RATINGS AGENCY CITED IMPROVEMENTS IN ASSET QUALITY AND CORE PROFITABILITY AS WELL AS THE BANK HOLDING COMPANY'S STRENGTHENED CAPITAL ADEQUACY AND IMPROVED ASSET MIX A SPOKESWOMAN FOR BANK OF BOSTON WHICH IS BASED IN BOSTON SAID WE ARE VERY VERY PLEASED WITH MOODY'S DECISION THIS IS VERY GOOD NEWS FOR US MOODY'S UPGRADED BANK OF BOSTON'S SENIOR DEBT TO BAA1 FROM BAA3 SUBORDINATED DEBT TO BAA2 FROM BA1 COMMERCIAL PAPER TO PRIME2 FROM PRIME3 CUMULATIVE PREFERRED STOCK TO BAA2 FROM BA1 AND THE SHELF REGISTRATION FOR NONCUMULATIVE PREFERRED STOCK TO BAA3 FROM BA2 MOODY'S ALSO RAISED CERTAIN RATINGS FOR UNITS FIRST NATIONAL BANK OF BOSTON IN BOSTON AND RHODE ISLAND HOSPITAL TRUST NATIONAL BANK PROVIDENCE RI MOODY'S RAISED FIRST NATIONAL'S LONGTERM DEPOSITS TO SINGLEA2 FROM BAA1 AND SHORTTERM DEPOSITS TO PRIME1 FROM PRIME2 SUBORDINATED DEBT TO BAA1 FROM BAA3 LONGTERM LETTERSOFCREDIT TO SINGLEA2 FROM BAA2 AND SHORTTERM LETTERSOFCREDIT TO PRIME1 FROM PRIME2 FIRST NATIONAL IS A UNIT OF BANK OF BOSTON THE RATINGS AGENCY ALSO RAISED THE RATINGS ON RHODE ISLAND HOSPITAL'S LONGTERM DEPOSITS TO SINGLEA2 FROM BAA1 AND SHORTTERM DEPOSITS TO PRIME1 FROM PRIME2 LONGTERM LETTERSOFCREDIT TO SINGLEA2 FROM BAA2 AND SHORTTERM LETTERSOFCREDIT TO PRIME1 FROM PRIME2 RHODE ISLAND HOSPITAL IS ALSO A BANK OF BOSTON UNIT 9302180005 930218 WHO'S NEWS DICEON NAMES JONAS CHIEF IRVINE CALIF PETER S JONAS 54 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF DICEON ELECTRONICS INC SUCCEEDING ROLAND G MATTHEWS MR MATTHEWS 53 WHO REMAINS CHAIRMAN SAID HE RESIGNED AS CHIEF EXECUTIVE TO TAKE A NINEMONTH SABBATICAL TRIP WITH HIS WIFE MR JONAS WAS ALSO NAMED PRESIDENT A NEW POST HE REMAINS VICE CHAIRMAN BUT RELINQUISHED THE CHIEF FINANCIAL OFFICER POST TO MICHAEL S SHIMADA 43 WHO REMAINS CONTROLLER AND VICE PRESIDENT OF FINANCE AT THE COMPUTER CIRCUITBOARD MAKER MR MATTHEWS SAID HE WILL KEEP IN TOUCH WITH THE BOARD BY TELEPHONE BUT WON'T BE PAID DURING HIS SABBATICAL WHICH BEGINS IN APRIL 9302180004 930218 ECONOMY HOUSING STARTS TUMBLED 72 DURING JANUARY DECREASE FOLLOWED SURGE IN THE FOURTH QUARTER SOUTHERN DATA STRONG BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL JANUARY STARTS DECLINED TO A SEASONALLY ADJUSTED ANNUAL RATE OF 12 MILLION FROM 13 MILLION IN DECEMBER THE COMMERCE DEPARTMENT REPORTED THE DROP FOLLOWED A REVISED 48 GAIN IN DECEMBER LAST MONTH'S DECLINE CAME AFTER THE HOUSING MARKET SEEMED TO BE REVIVING CONSTRUCTION HAD REBOUNDED IN 1992 FROM A POSTWORLD WAR II LOW IN 1991 FOR THE FIRST ANNUAL INCREASE SINCE 1986 DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION CALLED JANUARY'S DECLINE DISAPPOINTING NEWS AFTER A SURGE IN THE FOURTH QUARTER OF 1992 HE SAID THE GOVERNMENT'S REPORT FOR JANUARY COULD SIGNAL THAT THE HOUSING PICKUP IS PETERING OUT BUT HE CAUTIONED THAT ONE MONTH'S FIGURES DON'T MAKE A TREND AND ADDED THAT JANUARY'S SLUMP COULD BE BLAMED PARTLY ON BAD WEATHERFLOODING IN THE WEST AND SNOW IN THE NORTHEAST I STILL CLING TO THE BELIEF THAT HOUSING STARTS FOR ALL OF 1993 WILL RISE TO 13 MILLION FROM 12 MILLION LAST YEAR HE SAID AND HE PREDICTED THAT FEBRUARY AND MARCH WOULD SHOW IMPROVED RESULTS IN JANUARY SINGLEFAMILY CONSTRUCTION THE BULWARK OF LAST YEAR'S PICKUP FELL 56 TO A 107 MILLIONUNIT ANNUAL RATE THE RATE FOR MULTIFAMILY BUILDING WAS DOWN EVEN MORE BY 20 TO 122000 UNITS AFTER A SIZABLE UPTURN IN DECEMBER EVERY REGION SUSTAINED A SHARP DECLINE IN JANUARY STARTS EXCEPT THE SOUTH WHICH SHOWED A 34 INCREASE BUILDING PERMITS AN INDICATION OF FUTURE CONSTRUCTION ALSO FELL IN JANUARY BY 48 TO 994000 FOR SINGLEFAMILY HOMES BUT PERMITS ROSE 18 TO 186000 FOR MULTIFAMILY HOMES JANUARY CONSTRUCTION WAS OFF A FULL 15 OUTSIDE THE SOUTH WHERE HOUSING ACTIVITY WAS BOLSTERED BY RECONSTRUCTION ACTIVITY FOLLOWING HURRICANE ANDREW SAID MR LEREAH HE NOTED BIG DECLINES OF 24 IN THE NORTHEAST AND 22 IN THE WEST 9302180003 930218 YOUR MONEY MATTERS CLINTON TAX PLAN MAY CHANGE HOW YOU INVEST BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PROPOSED TAX CHANGES COULD HAVE A BIG IMPACT ON THE WAY SOME AMERICANS CHOOSE THEIR INVESTMENTS CUMULATIVELY WHILE THE PROPOSED CHANGES WOULDN'T INFLUENCE THE WAY MIDDLE AND LOWERINCOME INDIVIDUALS SAVE AND INVEST THEY COULD CREATE INCENTIVES FOR WEALTHIER PEOPLE TO CHOOSE TAXEXEMPT MUNICIPAL BONDS AND TAXDEFERRED INVESTMENTS LIKE ANNUITIES AND WHOLE LIFE INSURANCE THEY WOULD ALSO MAKE STOCKS MORE ATTRACTIVE THAN BONDS CLEARLY THE BIGGEST EFFECT WOULD BE TO MAKE TAXFAVORED INVESTMENTS SUCH AS MUNIS AND ANNUITIES MORE ATTRACTIVE TO THE WEALTHY WHOSE TAX RATES WOULD CLIMB UNDER THE PROPOSAL MR CLINTON OUTLINED LAST NIGHT BEFORE A JOINT SESSION OF CONGRESS A NEW 36 MARGINAL TAX RATE WOULD KICK IN AT 140000 OF TAXABLE INCOME FOR COUPLES 115000 FOR SINGLE FILERS AND 127500 FOR HEADS OF HOUSEHOLD WHEN COMBINED WITH THE 10 SURTAX ON TAXABLE INCOME OVER 250000 THE TOP RATE WOULD RISE TO 396 FOR THE RICHEST INVESTORS UP FROM THE CURRENT TOP STATED RATE OF 31 BUT THE PROPOSED CHANGES COULD ALSO MAKE STOCKS LOOK SLIGHTLY MORE ATTRACTIVE THAN TAXABLE BONDS AND OTHER INCOMEPRODUCING INVESTMENTS FOR MANY WEALTHY INVESTORS SAYS FRANK MCARDLE PARTNER AND MANAGER OF THE RESEARCH GROUP IN THE WASHINGTON OFFICE OF HEWITT ASSOCIATES A BENEFITS CONSULTING FIRM THAT'S BECAUSE THE SPREAD BETWEEN THE TOP CAPITAL GAINS RATE CURRENTLY 28 AND THE TOP MARGINAL RATE ON ORDINARY INCOME WOULD WIDEN CONSIDERABLY MOREOVER THE PROPOSED SURTAX WOULDN'T BE APPLICABLE TO CAPITAL GAINS CAPITAL GAINS OCCUR WHEN AN INVESTOR BUYS A STOCK BOND OR OTHER INVESTMENT AND IT GOES UP IN PRICE THE GAIN IS REALIZED FOR TAX PURPOSES WHEN THE INVESTMENT IS SOLD AT WHICH POINT THE GOVERNMENT DEMANDS A SHARE OF ANY PROFITS ABOVE THE INITIAL PURCHASE PRICE THE INCREASED GAP BETWEEN THE MAXIMUM TAX RATES ON CAPITAL GAINS AND ORDINARY INCOME COULD MAKE PEOPLE PAY MORE ATTENTION TO CAPITAL GAINS THAN THEY HAVE PREVIOUSLY SAYS THOMAS OCHSENSCHLAGER A PARTNER AT THE WASHINGTON OFFICES OF ACCOUNTING FIRM GRANT THORNTON THE DIFFERENCE BETWEEN A CAPITAL GAINS RATE OF 28 AND A TOP RATE OF 31 HASN'T BEEN THAT IMPORTANT TO CLIENTS BUT WITH A NEARLY 12 PERCENTAGE POINT DIFFERENCE THEY MAY PAY MORE ATTENTION HE SAYS STILL MANY FINANCIAL PROFESSIONALS DON'T THINK THE CHANGES WOULD LEAD THE WEALTHY TO STAMPEDE INTO STOCKS ONE DOESN'T KNOW WHETHER STOCKS WILL GENERATE LARGE CAPITAL GAINS SMALL CAPITAL GAINS OR CAPITAL LOSSES SAYS JOHN BOGLE CHAIRMAN OF THE VANGUARD GROUP IN VALLEY FORGE PA MOST INVESTORS IN THESE BRACKETS ALMOST CERTAINLY HAVE TAXEXEMPT BONDS MOREOVER INVESTMENT PROFESSIONALS SAY THE CHANGES PROPOSED BY PRESIDENT CLINTON ON CORPORATE AND PERSONAL INCOME TAXES WOULD HURT RETURNS ON ALL FINANCIAL ASSETS AND THUS ARE A PROBABLE NEGATIVE FOR INVESTORS OF ALL STRIPES THE KEY QUESTION TO ASK IS WHICH KINDS OF INVESTMENTS WOULD BE HURT LEAST INVESTMENTS THAT PROVIDE THE BULK OF THEIR RETURN THROUGH CAPITAL GAINS INCLUDING EMERGING GROWTH STOCKS TURNAROUND STOCKS VENTURE CAPITAL AND POSSIBLY REAL ESTATE WOULD FACE MINIMAL DAMAGE RELATIVE TO THE CURRENT TAX STRUCTURE THAT WOULD MAKE THEM MORE DESIRABLE TO INVESTORS RELATIVE TO OTHER TAXABLE INVESTMENTS CORPORATE AND GOVERNMENT BONDS WOULD BE SUBSTANTIALLY HARDER HIT ON AN AFTERTAX BASIS BUT NOT AS BADLY AS HIGHYIELDING STOCKS INCOME FROM MONEYMARKET FUNDS AND BANK CERTIFICATES OF DEPOSITS WOULD ALSO BE HIT BY THE HIGHER MARGINAL TAX RATES IN ANY CASE THE ADDED LUSTER OF CAPITAL GAINS OVER REGULAR INCOME COULD MAKE A PRACTICAL DIFFERENCE IN INVESTORS' DECISIONS ABOUT WHEN TO SELL SECURITIES THEY MAY BE MORE INCLINED TO WAIT UNTIL THEY HAVE HELD THEM AT LEAST 12 MONTHS IN ORDER TO QUALIFY FOR THE CAPITAL GAINS RATE SAYS MR OCHSENSCHLAGER ROBERT GREENBERGER DIRECTOR OF TAX AT COWEN & CO AN INTERNATIONAL SECURITIES FIRM BASED IN NEW YORK SAYS UPPERINCOME INVESTORS WITH GAINS ON TAXABLE BONDS MIGHT WANT TO SELL THEM BEFORE MATURITY SINCE THE PROFIT WOULD BE CONSIDERED A CAPITAL GAIN AND THEREFORE TAXED AT A LOWER RATE THAN THEIR ORDINARY INCOME EXECUTIVES MIGHT WANT TO EXERCISE COMPANYGRANTED STOCK OPTIONS SOONER RATHER THAN LATER SO THAT FUTURE APPRECIATION WILL GENERATE INCOME TAXED AT CAPITAL GAINS RATES RATHER THAN ORDINARY TAX RATES SAYS DEBORAH WALKER A TAX PARTNER AT KPMG PEAT MARWICK IN WASHINGTON THE PROPOSED TAX INCREASES ARE LIKELY TO ENCOURAGE MORE INVESTORS TO TURN TO TAXFREE MUNICIPAL BONDS SAYS JOHN R MOUSSEAU A FIRST VICE PRESIDENT AT LEHMAN BROTHERS THE IMPACT WILL BE INCREASED DEMAND FOR MUNICIPAL BONDS FROM WEALTHY RETAIL INVESTORS HE SAYS MUNICIPAL BONDS WOULD BECOME EVEN MORE ATTRACTIVE FOR SOMEONE LIVING IN A HIGHTAX AREA SUCH AS NEW YORK CITY FOR A NEW YORK CITY DWELLER IN THE TOP BRACKET RIGHT NOW A 6 BOND TRANSLATES INTO A TAXABLE EQUIVALENT YIELD OF ABOUT 99 MR MOUSSEAU SAYS BUT IF THE TOP FEDERAL RATE RISES TO 396 THAT 6 BOND WOULD HAVE A TAXABLE EQUIVALENT YIELD OF MORE THAN 113 HE ADDS THE CLINTON PLAN MAKES MUNIS A MUST INVESTMENT FOR PEOPLE IN THE HIGHEST TAX BRACKET SAYS RICHARD A CICCARONE A SENIOR VICE PRESIDENT AT KEMPER SECURITIES INC IN CHICAGO EXPERTS WARN INVESTORS WHO WOULD BE AFFECTED BY MR CLINTON'S PROPOSED CHANGES NOT TO BE HUSTLED INTO TAXEXEMPT INVESTMENTS BY EAGER SALESPEOPLE IN PART BECAUSE MUNI PRICES HAVE ALREADY RISEN THE NEWS THAT TAX RATES ARE GOING UP IS HARDLY NEWS SAYS MR BOGLE IT'S NOT AS IF THE MARKET DIDN'T ANTICIPATE THIS TO MEASURE THE IMPACT OF THE PROPOSED CHANGES ON TAXABLE INVESTMENTS CONSIDER THE THREE WAYS INDIVIDUALS MAKE MONEY WITH THESE INVESTMENTS DIVIDENDS DIVIDENDS FACE A DOUBLE WHAMMY UNDER THE PROPOSED TAX CHANGES AND WILL BE LEAST APPEALING TO INDIVIDUAL INVESTORS ON AN AFTERTAX BASIS THE DOUBLE WHAMMY ARISES BECAUSE DIVIDENDS ARE TAXED TWICE ONCE AS CORPORATE INCOME AND ONCE AS PERSONAL INCOME WHEN THEY'RE PAID OUT TO INVESTORS AND BOTH THOSE TAX RATES FACE SIGNIFICANT INCREASES AT THE PROPOSED TOP INCOME TAX RATES FOR CORPORATIONS 36 AND INDIVIDUALS 396 A COMPANY WOULD HAVE TO INCREASE EARNINGS BY 178 FROM CURRENT LEVELS SIMPLY TO KEEP ITS DIVIDEND UNCHANGED AFTERTAX THAT IS IT WOULD HAVE TO HAVE 259 IN PRETAX PROFIT IN ORDER TO PAY A 1 AFTERTAX DIVIDEND TO SHAREHOLDERS COMPARED WITH 220 AT TODAY'S TAX RATES ACCORDING TO AB LAFFER VA CANTO & ASSOCIATES INTEREST INTEREST INCOME WOULD BE HURT BY THE PROPOSED INCREASE IN PERSONAL INCOME TAXES BUT SINCE IT'S NOT TAXED AT THE CORPORATE LEVEL THE NET DAMAGE WOULD BE SOMEWHAT SOFTER THAN ON DIVIDENDS AT THE NEW TOP RATES A COMPANY WOULD HAVE TO MAKE 166 TO PROVIDE 1 OF AFTERTAX RETURN TO ITS BOND INVESTORS ACCORDING TO LAFFER CANTO THAT'S UP 124 FROM 145 TODAY CAPITAL GAINS CAPITAL GAINS ARE EFFECTIVELY TAXED TWICE ONCE DIRECTLY AT THE INDIVIDUAL LEVEL AND ONCE INDIRECTLY AT THE CORPORATE LEVEL INVESTORS OF COURSE PAY CAPITAL GAINS WHEN THEY SELL A STOCK THAT'S APPRECIATED IN PRICE WHILE A COMPANY'S STOCK PRICE MAY FLUCTUATE DAILY ITS APPRECIATION IN THE LONG RUN IS INTIMATELY TIED TO EARNINGS GROWTH BUT HIGHER TAXES ON A COMPANY'S EARNINGS WOULD LEAVE LESS MONEY IN THE CORPORATE TILL TO EXPAND ITS BUSINESS AND INCREASE EARNINGS LOWER EARNINGS GROWTH IN TURN WOULD MEAN LESS STOCKPRICE APPRECIATION WHICH ULTIMATELY WOULD PUT LESS MONEY IN THE INVESTOR'S POCKET IN CAPITAL GAINS UNDER PRESIDENT CLINTON'S PROPOSALS CAPITAL GAINS TAXES WOULD REMAIN UNCHANGED WHILE CORPORATE TAXES WOULD RISE TO 36 FROM 34 AS A RESULT A COMPANY WOULD HAVE TO INCREASE ITS PROFIT BY ONLY 31 FROM ITS CURRENT LEVEL TO PROVIDE THE SAME 1 OF AFTERTAX RETURN TO INVESTORS THROUGH CAPITAL GAINS 217 COMPARED WITH 210 AT CURRENT TAX RATES ACCORDING TO LAFFER CANTO TAX EXPERTS CAUTION THAT THE PROPOSED CHANGES AND THE EFFECTIVE DATE WHICH WOULD BE JAN 1 1993 COULD ALL BE ALTERED BUT THE SIGNALS ARE CLEAR ENOUGH TO MAKE IT IMPORTANT FOR WEALTHY TAXPAYERS TO WORK OUT SOME PROJECTIONS WITH THEIR ACCOUNTANTS GET THE GUN COCKED BUT DON'T PULL THE TRIGGER SAYS GEORGE BARBEE A DIRECTOR WITH PRICE WATERHOUSE IN BOSTON FIND OUT WHAT YOUR TAX BRACKET WOULD BE AND WHAT YOUR ALTERNATIVE MINIMUM TAX STATUS IS AND WEIGH THAT OVER THE NEXT SEVERAL MONTHS HE SAYS DON'T PANIC TOM HERMAN AND BARBARA DONNELLY GRANITO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9302180002 930218 LEISURE & ARTS BOOKSHELF SICK KIDS DANGEROUS GAMES BY TOM NOLAN SEVERAL DETECTIVEFICTION NOVELISTS NOW WRITE EXCLUSIVELY ABOUT THE CRIMES SUFFERED BY CHILDREN PIONEERING THIS SERIOUS TERRITORY WAS JONATHAN KELLERMAN WHOSE CHILD PSYCHOLOGIST HERO DR ALEX DELAWARE HAS BEEN ON THE SCENE SINCE 1985 DEVIL'S WALTZ BANTAM 416 PAGES 2295 IS THE SEVENTH OUTING FOR DR DELAWARE WHO ENCOUNTERS IN IT THE SORT OF SPOOKY HOSPITAL THAT IS A STAPLE OF A WHOLE OTHER SUBGENRE OF MEDICAL THRILLERS WESTERN PEDIATRICS IS THE INSTITUTION IN QUESTION LOCATED IN A RUNDOWN SECTION OF LOS ANGELES THE ONCE STATEOFTHEART FACILITY IS DETERIORATING ALONG WITH THE NEIGHBORHOOD DR DELAWARE IS CALLED THERE TO CONSULT ON THE CASE OF CASSIE JONES A 21MONTHOLD GIRL WHO HAS EXPERIENCED AN ALARMING SERIES OF LIFETHREATENING CRISES RULING OUT OTHER EXPLANATIONS THE PHYSICIAN IN CHARGE BELIEVES THE YOUNGSTER MAY BE A VICTIM OF MUNCHAUSEN SYNDROME BY PROXY AN OUTER FRINGE FORM OF CHILD ABUSE IN WHICH A PARENT CREATES ILLNESS IN HIS OR HER OFFSPRING ALMOST AS DISTURBING TO DELAWARE IS THE ATMOSPHERE AT WESTERN PEDS ARMED SECURITY GUARDS PROWL THE CORRIDORS BUT A DOCTOR IS MURDERED IN THE PARKING LOT SERVICES ARE MINIMAL ENTIRE DEPARTMENTS ARE BEING PHASED OUT IS THE HOSPITAL'S APPARENT PATHOLOGY LINKED SOMEHOW TO CASSIE'S SICKNESS MR KELLERMAN HIMSELF A FORMER CHILD PSYCHOLOGIST PRESENTS HIS MEDICAL DATA IN AN ENGROSSING MANNER THAT CREATES GENUINE SUSPENSE EQUALLY ADEPTLY HE OUTLINES THE FINANCIAL SHENANIGANS USED TO MANIPULATE THE HOSPITAL'S ASSETS ALSO ADROITLY GIVEN ARE VIVID GLIMPSES OF CONTEMPORARY SOUTHERN CALIFORNIA COMPUTERIZED UNIVERSITY LIBRARIES UNDERGROUND PUNKROCK CLUBS BEVERLY HILLS ESTATES CULVER CITY FLATS THE DISTURBED CHARACTERS IN JULIAN SYMONS'S FICTION ARE NOT LIKELY TO SEEK PROFESSIONAL HELP INSTEAD THEY LOOK FOR RELEASE FROM INTERNALIZED PRESSURES THROUGH THE PLAYING OUT OF DANGEROUS GAMESFANTASIES THAT OFTEN TURN REAL WITH FATAL CONSEQUENCES SUCH IS THE CASE WITH JUDITH LASSITER THE DISCONTENTED WIFE IN SOMETHING LIKE A LOVE AFFAIR MYSTERIOUS PRESS 224 PAGES 1795 THE ENGLISH AUTHOR'S LATEST BRILLIANT NOVEL ALIENATED FROM HER ARCHITECT HUSBAND JUDITH TAKES UP WITH BILLY GATY A DISHY BUT SOMEWHAT LOUTISH DRIVING INSTRUCTOR THEIR EROTIC ENTANGLEMENT LEADS JUDITH TO VOICE THE WISH THAT HER HUSBAND BE ELIMINATED BILLY RELUCTANTLY INTRODUCES JUDITH TO WILLEM A PROFESSIONAL WHO TAKES THE GAME TO A MORE DANGEROUS LEVEL MR SYMONS RENDERS HIS CHARACTERS' INNER STATES AND PAST HISTORIES AS EFFECTIVELY AS HE LIMNS THE EXTERNAL CIRCUMSTANCES IN WHICH THEY ARE CAUGHT THIS CONVINCING PSYCHOLOGICAL STUDY IS ENCLOSED IN A SUPERBLY CRAFTED SUSPENSE TALE THAT DELIVERS FULLY ON ITS PROMISE WITH A DOUBLE SLEIGHT OF HAND THAT SHOULD DAZZLE EVEN THE EXPERIENCED READER WHAT SEEMS INEVITABLE IN THE STORY'S FINALE SHIFTS INTO A NEW SURPRISE WHILE CLUES TO ANOTHER STARTLING DEVELOPMENT HAVE BEEN PRESENT ALL ALONG NOT FOR NOTHING HAS MR SYMONS BEEN GIVEN THE MYSTERY WRITERS OF AMERICA'S GRAND MASTER AWARD GOING FROM JULIAN SYMONS TO ROBERT FERRIGNO IS LIKE SWITCHING FROM AN ART FILM TO A HEAVYMETAL VIDEO MR FERRIGNO'S 1990 NOVEL THE HORSE LATITUDES AFFORDED A FLAMBOYANT VIEW OF SOUTHERN CALIFORNIA EXCESS THAT DREW EXTREME REACTIONS PRO AND CON FROM ITS REVIEWERS HIS SECOND THRILLER THE CHESHIRE MOON MORROW 285 PAGES 20 IS SOMEWHAT LESS LURID BUT ITS CONTENTS AND STYLE ARE STILL CHARACTERISTICALLY OVER THE TOP QUINN JUST QUINN IS THE CENTRAL FIGURE A TWOTIME PULITZER PRIZEWINNING REPORTER WE'RE TOLD NOW ON THE STAFF OF SLAP A SNIDE TRENDY MONTHLY SPECIALIZING IN CELEBRITY EXPOSES ONE OF QUINN'S BUDDIES IS ANDY A DEALER IN STOLEN GOODS WHO HAPPENS UPON A MURDER SCENE AND GLIMPSES THE KILLER AFTER TELLING QUINN WHAT HE KNOWS ANDY HIMSELF IS FOUND DEAD IT'S A SNIDE AND TRENDY LANDSCAPE QUINN TRAVERSES FILLED WITH LOATHSOME MEDIA TYPES AND SADOMASOCHISTIC PSYCHOKILLERS EVERYTHING IS PAINTED OVERSIZED AND IN PRIMARY COLORS THERE ARE SOME BROADLY AMUSING SET PIECES A DIRTDISHING LUNCH FUELED BY HERBAL COCKTAILS BUT THE SATIRE IS OVERWHELMED BY THE GARISH FANTASY WHICH INCLUDES KINKY SOFTCORE SEX AT FIRST SQUINT BUCKET NUT PERFECT CRIME/DOUBLEDAY 236 PAGES 1850 THE FIRST BOOK IN A NEW SERIES BY THE AWARDWINNING LISA CODY MIGHT ALSO SEEM TO FALL INTO SOME BIZARREFANTASY NICHE ITS HEROINENARRATOR LIVES IN AN AUTO SALVAGE YARD WITH TWO ATTACK DOGS AND PERFORMS ON THE SEEDY ENGLISH WRESTLING CIRCUIT AS THE LONDON LASSASSIN BUT EVA WYLIE WHO MAKES A WINNING DEBUT HERE IS A WONDERFULLY DRAWN AND COMPLETELY BELIEVABLE CHARACTER THE GRITTY WORLD SHE INHABITS SEEMS EQUALLY AUTHENTIC IN ADDITION TO HER RELATIVELY LEGITIMATE WORK AS JUNKYARD SECURITY PERSON AND WRESTLING VILLAIN THE AUTHORITYFLOUTING WYLIE RUNS OCCASIONAL NOQUESTIONSASKED ERRANDS FOR A SECRETIVE RESTAURANT OWNER NAMED MR CHENG MOONLIGHTING AS A GUARD FOR MR CHENG'S BUSINESS RIVAL WYLIE GETS CAUGHT IN THE MIDDLE OF A VICIOUS TURF WAR SHE MUST GRUDGINGLY ACCEPT THE HELP OF ANNA LEE THE DETECTIVE WHO TOOK CENTER STAGE IN MS CODY'S SIX PREVIOUS MYSTERIES WITH HER SKEWED SOCIAL PERSPECTIVE AND HER INADVERTENTLY SELFREVEALING MONOLOGUE THIS NOHOLDSBARRED WRESTLER IS THE MOST INTERESTING SLEUTH TO APPEAR IN MANY A SEASON BUCKET NUT HINTS AT A FUTURE TEAMING OF ANNA LEE AND EVA WYLIE A RETURN MATCH IS EAGERLY AWAITED 9302180001 930218 WHO'S NEWS SUNRISE MEDICAL INC SUNRISE MEDICAL INC TORRANCE CALIF LARRY C BUCKELEW WAS ELECTED PRESIDENT OF THIS MAKER OF REHABILITATION PRODUCTS EFFECTIVE JULY 1 MR BUCKELEW 39 YEARS OLD IS CURRENTLY PRESIDENT OF THE COMPANY'S BIO CLINIC UNIT AND WILL SUCCEED RICHARD H CHANDLER IN HIS NEW POST MR CHANDLER 49 WILL RETAIN THE TITLES OF CHAIRMAN AND CHIEF EXECUTIVE 9302180170 930128 WORKPLACE WIFE'S HIGHER PAY CAN TEST A MARRIAGE BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL BLAUVELT NY BOND BROKER TOM MCDONOUGH WORKS ON WALL STREET LIVES IN THIS RUSTIC SUBURB AND AT AGE 39 RELISHES RIDING 10000 MOTORCYCLES LAST FALL HE JETTED TO BERMUDA FOR A WEEK OF EXECUTIVE MEETINGS BUT WHEN THE EXECUTIVES FILED INTO CONFERENCE ROOMS HE JOINED 120 WOMEN AND TWO OTHER MEN AT QUESTIONANDANSWER SESSIONS FOR SPOUSES MR MCDONOUGH'S WIFE ELLEN HART IS A 44YEAROLD GEMINI CONSULTING INC VICE PRESIDENT WHOSE SIXFIGURE SALARY IS MORE THAN TRIPLE HIS SINCE SHE'S OFTEN ON THE ROAD HE LIMITS HIS OWN WORK HOURS AND TRAVEL TO CARE FOR THEIR SEVENYEAROLD SON ARTHUR IT'S A ROLE HE LOVES BUT IT THREATENS TO SWALLOW HIS CAREER TWO YEARS AGO HE BALKED AT MS HART'S CHANCE TO TRANSFER TO LONDON FOR A YEAR BECAUSE WITHOUT A GOOD JOB OFFER OF HIS OWN HE WOULD HAVE HAD TO BECOME A HOUSE HUSBAND I REMEMBER THINKING OF MYSELF AS A NANNY HE SAYS TWOCAREER COUPLES ARE STANDARD THESE DAYS AND MANY OF THEM COUNT ON THE WIFE'S INCOME TO FOOT HEFTY SHARES OF MORTGAGE AND COLLEGE TUITION BILLS BUT NOW A FEW WOMEN ARE DOING WHAT WAS UNTHINKABLE JUST ONE GENERATION AGO EARNING SUBSTANTIALLY MORE THAN THEIR HUSBANDS THESE WOMEN ARE GROWING IN NUMBER AS THEY REACH SENIOR MANAGEMENT SUCCESSFULLY LAUNCH THEIR OWN BUSINESSES OR ENTER HIGHPAYING FIELDS SUCH AS MEDICINE OTHER WOMEN FIND THEMSELVES EARNING MORE AS THEIR HUSBANDS ARE LAID OFF DURING DOWNSIZINGS OR REACH CAREER DEAD ENDS THE INCOME GAP DOESN'T NECESSARILY HURT A MARRIAGE AS LONG AS THE MAN FEELS HE'S AT LEAST AN EQUAL HILLARY CLINTON EARNED SUBSTANTIALLY MORE THAN HER HUSBAND THE GOVERNOR WHEN SHE WAS PRACTICING LAW AND HE BOASTED OF HER SUCCESS BUT AN INCOME GAP THAT CLEARLY GIVES THE WIFE ALL THE POWER CAN UNDERMINE OR EVEN END A MARRIAGE A MANHATTAN FINANCIAL CONSULTANT FEELS FRUSTRATED BECAUSE HER FINANCEEXECUTIVE HUSBAND TOOK TOO LONG TO DECIDE WHAT HE WANTED TO DO WHEN HE GREW UP SHE SAYS SHE HATES BEING THE PRIMARY EARNER BECAUSE SHE HAS LOST THE FREEDOM TO TAKE OFF A YEAR TO SPEND WITH HER CHILDREN OR WORK ON SPECIAL PROJECTS THE WOMAN RESENTS HER HUSBAND'S LACK OF POWER BECAUSE WE WEREN'T RAISED AS WOMEN TO THINK WE WERE GOING TO BE MARRIED TO LOSERS MEN RESENT THAT ATTITUDE S ROSS GOODMAN OF HICKSVILLE NY SAYS HE WAS HAPPY WITH HIS JOB MANAGING A DISCOUNT STORE UNTIL 1984 WHEN HE MARRIED MERYL ABRAMSON A COMPUTER SPECIALIST AND COMMUNICATIONSCOMPANY MANAGER AT HER URGING HE WENT BACK TO SCHOOL TO LEARN COMPUTER PROGRAMMING AND TOOK A PAY CUT TO JOIN HER COMPANY SHE ALSO PUSHED FOR HIS PROMOTION TO A JOB AS LOCAL AREA NETWORK ADMINISTRATOR SHE WANTED TO BE MARRIED TO A PROFESSIONAL MR GOODMAN SAYS I DON'T THINK I WAS GIVEN A CHOICE MS ABRAMSON SAYS SHE SIMPLY WANTED HER HUSBAND TO REACH AT LEAST THE SAME LEVEL THAT SHE HAD OR TO BE MORE AMBITIOUS I THOUGHT I TRIED TO BUILD HIM UP IN THE END MR GOODMAN'S EGO WAS DEPLETED BY THE FACT THAT I WAS SITTING IN THE BREADWINNER'S SEAT MS ABRAMSON SAYS MR GOODMAN COUNTERS THAT IF ANYTHING SHE WAS THE ONE WHO COULDN'T STAND HIS LOWER STATUS THE TWO DIVORCED LAST SUMMER BUT MOST PROBLEMS CAUSED BY A WOMAN EARNING MORE THAN HER HUSBAND ARE MORE SUBTLE FOR MEN THE SWITCH CAN HURT THEIR SELF IMAGE ESPECIALLY IF THEY WERE RAISED TO BE OZZIES IN THE OZZIE AND HARRIET SCENARIO MANY MEN CAN'T TOLERATE THE EGO DIMINUTION OF A WIFE WHO'S MORE POWERFUL THAN HE IS SAYS PATRICIA S COOK AN AT KEARNEY VICE PRESIDENT AND EXECUTIVE RECRUITER WHO IS ALSO A PSYCHOLOGIST FOR WOMEN FEMININITY CAN BE UNDERMINED ON THE SURFACE MOST SEEM HAPPY TO LIVE UP TO THE SUPERWOMAN CHALLENGE BUT EVEN THE MOST LIBERATED WOMAN HAS FANTASIES OF BEING TAKEN CARE OF SAYS MANHATTAN PSYCHOLOGIST BARBRA LOCKER IN GENERAL IT'S AN UNUSUAL COUPLE THAT CAN NEGOTIATE EQUAL POWER MS COOK CONTENDS AT BEST THE COUPLE REALIZES THAT WHO MAKES THE MOST MONEY IS GOING TO SHIFT BETWEEN THEM IN FACT MR MCDONOUGH BOASTS OF HIS WIFE'S SUCCESS TO COLLEAGUES AT HARRY'S A BAR IN LOWER MANHATTAN WHERE HE AND OTHER BOND BROKERS ARE REGULARS BUT HE SAYS HE HAS BEEN TOLD OUTRIGHT BY FRIENDS THAT THEY COULDN'T STAND TO HAVE THEIR WIVES MAKE MORE WHEN THEY MET AT RAMAPO COLLEGE IN MAHWAH NJ IN 1975 MR MCDONOUGH WAS AN ECONOMICS MAJOR AND MS HART WAS A PSYCHOLOGY TEACHER WHO MARCHED IN ANTIWAR DEMONSTRATIONS AFTER GRADUATION HE LANDED WORK AS AN INSURANCE CLAIMS ADJUSTOR SPENDING HIS DAYS HAGGLING WITH AUTO MECHANICS OVER REPAIR BILLS BUT IN TIME MR MCDONOUGH'S PAY EDGED PAST MS HART'S TEACHING SALARY THE TWO MARRIED IN 1980 A YEAR LATER MS HART PUT ASIDE HER DISDAIN FOR CORPORATE AMERICA AND BECAME A BUSINESS CONSULTANT HELPING TO DESIGN EXECUTIVE TEAMS TWO YEARS LATER MR MCDONOUGH HIT THE BIG TIME LANDING A JOB AS A BOND BROKER WITH MANUFACTURERS HANOVER MS HART WHO HAD EARLIER RESISTED MARRIAGE BECAUSE I THOUGHT I MIGHT LOSE MYSELF DEFENDED HER INDEPENDENCE BY INSISTING ON SEPARATE BANK ACCOUNTS AND SPLITTING THE BILLS I EVEN USED TO KNOW WHO OWNED WHAT STOCK SHE SAYS THAT SEPARATE BUT EQUAL ARRANGEMENT HALTED AFTER SHE GAVE BIRTH AND QUIT HER JOB HOME FOR 18 MONTHS WITHOUT AN INCOME SHE BEGAN TO FEEL LIKE HER MOTHER STRETCHING HER FATHER'S PAYCHECKS I FELT LIKE I HAD TO BE MS FRUGAL SINCE IT WASN'T MY MONEY MS HART SAYS TOM DIDN'T HOOK INTO THAT AT ALL HE KEPT SAYING WHATEVER THE FAMILY'S GOT THE FAMILY'S GOT' HE DIDN'T HAVE ONE SECOND OF TROUBLE THAT HE WAS THE BREADWINNER AND I WASN'T BUT I DID HER INSECURITY LINGERED UNTIL SHE RETURNED TO WORK THE 1980S REVERSED THEIR FORTUNES WHILE MS HART RETURNED TO WORK AND LOGGED DOUBLEDIGIT RAISES AND PROMOTIONS MR MCDONOUGH'S CAREER STALLED IN 1987 NEW TRADING REGULATIONS CAPPED COMMISSIONS FORCING HIM TO SELL MORE BONDS TO MAKE THE SAME PROFIT THEN THREE YEARS LATER MANUFACTURERS HANOVER MERGED WITH CHEMICAL BANK HE SURVIVED THE FIRST ROUND OF CUTS BUT NOT THE SECOND THAT'S WHEN MR MCDONOUGH REALIZED HIS OPTIONS WERE LIMITED WITH MS HART ON THE ROAD SEVERAL DAYS A WEEK HE WASN'T FREE TO CHOOSE WORK THAT DEMANDED TRAVEL LONG HOURS OR A LENGTHY COMMUTE SOMEONE HAS GOT TO RELIEVE THE BABYSITTER AND THAT PERSON IS ME HE SAYS SO HE TURNED DOWN A BANKING POSITION WHICH WOULD HAVE REQUIRED THE FAMILY TO MOVE TO ROCHESTER NY AND TOOK A LOWERPAYING JOB AS A BOND BROKER AT A SMALL WALL STREET FIRM THE SPECTER OF TRANSFERS STILL CAUSES ANGST WHILE MR MCDONOUGH CAN'T CONSIDER ONE HIS WIFE CAN WHICH WOULD FORCE THEM TO RETHINK HIS CAREER THE ISSUE SURFACED TWO YEARS AGO WHEN GEMINI OFFERED MS HART A TEMPORARY TRANSFER TO LONDON EVEN IF HE HAD FOUND A JOB THERE HE WOULD HAVE HAD TO FIND A NEW ONE IN THE BATTERED US FINANCIAL SERVICES INDUSTRY AFTER HIS WIFE WAS TRANSFERRED BACK THAT WAS JUST TOO SCARY HE SAYS I THOUGHT OF IT AS AN UNNECESSARY RISK FOR MS HART THE TRANSFER WAS A CHANCE TO BECOME A BETTER BUSINESS CONSULTANT BY LEARNING HOW BUSINESS IS DONE ABROAD AND EVERY WEEKEND WE COULD HAVE FLOWN TO PARIS SHE SAYS A BIT WISTFULLY SPENDING MONEY IS TRICKY TOO ALTHOUGH THE COUPLE MAKES MUTUAL INVESTMENT DECISIONS MR MCDONOUGH HESITATES TO SAY WHETHER HE'S FREE TO SPEND AT THE LEVELS MS HART'S INCOME WOULD ALLOW YOU'RE THE ONE MAKING MORE HE SAYS TOSSING THE QUESTION TO HER THAT SAID HE DISCLOSES HE'S CONSIDERING A BIG PURCHASE A HARLEY DAVIDSON SUPERGLIDE MOTORCYCLE THAT STARTS AT 10000 A MAN AT MY STATION OF LIFE DESERVES TO TRADE UP MR MCDONOUGH SAYS SEE RELATED LETTER LETTERS TO THE EDITOR MAKE UP YOUR MIND AND STOP COMPLAINING WSJ FEB 18 1993 9301280058 9302180143 930119 MOVING ON AMERICANS WHO SEEK A FUTURE IN CALIFORNIA FIND OTHERS DEPARTING THE EBARBS ALABAMA BOUND LOST THEIR DEFENSE JOBS A HOME AND WAY OF LIFE THE NEW JOADS' HIT THE ROAD BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THE VINEYARDS THE ORCHARDS THE GREAT FLAT VALLEY GREEN AND BEAUTIFUL RUTHIE WHISPERED IT'S CALIFORNIA BLYTHE CALIF AWRIGHT PHILIP EBARB BELLOWS AS HIS PICKUP WITH A TINY WEATHERED HOUSE TRAILER IN TOW BARRELS EAST ACROSS THE COLORADO RIVER TOWARD THE HEAT OF THE ARIZONA DESERT WE'RE GETTIN' OUT OF CALIFORNIA BEHIND DRIVING A BIG YELLOW RENTAL TRUCK CRAMMED WITH THE FAMILY'S POSSESSIONS MICHELLE EBARB WATCHES THE GOLDEN STATE'S LAST PALMS DISAPPEAR IN THE REARVIEW MIRROR AND PROMISES HER FOURYEAROLD DAUGHTER BRIANNA THAT THINGS WILL BE DIFFERENT NOW A TRAILER PARK IN REDLANDS 200 MILES BACK UP THE ROAD WAS THE EBARBS' LAST CALIFORNIA HOME THE END OF A TALE OF LAYOFFS TOO LITTLE MONEY THE LOSS OF A HOUSE AND THE SOUND OF GUNFIRE IN THE NIGHT AHEAD LIES A 2000MILE JOURNEY TO ALABAMA AND THE HOPE SAYS MRS EBARB OF STARTING LIFE AGAIN FOR DECADES CALIFORNIA HAS BEEN A PLACE AMERICANS HAVE COME TO IN SEARCH OF A BETTER LIFE MILLIONS HAVE MOVED HERE SINCE THE DEPRESSION WHEN THE OKIES WHOM STEINBECK WROTE ABOUT ABANDONED DROUGHTSTRICKEN FARMS OF THE DUST BOWL AND HEADED WEST TODAY SOME CALIFORNIANS ARE HEADED IN THE OTHER DIRECTION IT'S TRUE THAT THE STATE'S POPULATION CONTINUES TO GROW BUT THIS IS MOSTLY BECAUSE OF ASIAN AND HISPANIC IMMIGRATION AND A STATEWIDE BIRTHRATE THAT'S 25 ABOVE THE NATIONAL AVERAGE IT'S ALSO TRUE THAT MILLIONS OF CALIFORNIANS ARE PERFECTLY HAPPY TO STAY PUT AND THAT THE ARRIVAL OF AMERICANS FROM OTHER STATES HASN'T ENTIRELY STOPPED BUT IN TERMS OF AMERICANS ON THE MOVE SEEKING OPPORTUNITY AN EXODUS NOW IS APPARENT IN THE BUSINESS OF VAN LINES IN DRIVER'SLICENSE DATA IN CALIFORNIANS LOOKING FOR JOBS AND HOUSES IN OREGON AND IN SCHOOL ENROLLMENTS IN PLACES LIKE PARK CITY UTAH WORK PROMPTS MUCH OF IT CALIFORNIA HAS LOST MORE THAN 800000 JOBS IN THE PAST TWO YEARS THE STATE UNEMPLOYMENT RATE OF 97 THOUGH DOWN IN THE PAST MONTH IS FAR ABOVE THE US RATE OF 73 THE NATION'S LARGEST STATE APPEARS TO BE IN THE MIDDLE OF EPOCHAL CHANGE NOT ONLY IN ITS ECONOMIC FORTUNES BUT IN THE WAY RESIDENTS REGARD IT THERE IS A FEELING HERE THAT THINGS ARE OUT OF CONTROL SAYS MARK BALDASSARE A POLLSTER AND SOCIOLOGIST AT THE UNIVERSITY OF CALIFORNIA AT IRVINE EVEN BEFORE RIOTS SHOOK LOS ANGELES GROWING URBAN PRESSURES TROUBLED CALIFORNIANS LAND ONCE COVERED WITH SAGEBRUSH AND LIVE OAK IS OVERGROWN WITH HOUSING RESIDENTS COMPLAIN THAT HOMES COST TOO MUCH THAT THE SCHOOLS ARE GOING TO HELL THAT TAXES ARE TOO HIGH THAT TOO MANY PEOPLE ARE ON WELFARE THAT CRIME IS OUT OF CONTROL PHILIP EBARB BORN HERE 30 YEARS AGO AND MICHELLE EBARB WHO ARRIVED FROM OHIO AT THE AGE OF EIGHT WERE ONCE PROUD OF THE STATE THEY FEEL NOW THAT CALIFORNIA HAS LET THEM DOWN IT DIDN'T WORK FOR US SAYS MRS EBARB WHO IS 31 LIKE JOHN STEINBECK'S FICTIONAL JOAD FAMILY THE EBARBS THEIR RYDER TRUCK LOADED WITH EVERYTHING THEY OWN ARE HEADED TO A PLACE THEY DON'T KNOW MUCH ABOUT BUT IT'S BACK EAST RURAL ALABAMA THEIR TREK BEGINS AT THE NEW YORK PIZZA RESTAURANT IN YUCAIPA NEAR REDLANDS FAMILIES FROM THE PROTESTANT GREEN VALLEY FOURSQUARE CHURCH GATHER FOR A GOODBYE LUNCH AT THE MORNING CHURCH SERVICE GOD WAS ASKED TO BLESS THE FAMILY NOW AS PIZZAS ARE PLOPPED ONTO PAPER PLATES MR EBARB BOWS HIS HEAD AND OFFERS A SIMPLE PRAYER WE KNOW WE ARE GOING TO MISS PEOPLE HERE LORD WE THANK YOU FOR THE TIME WE HAVE SPENT IN THIS PLACE AFTER A ROUND OF AMENS TALK TURNS QUICKLY TO WORLDLY MATTERS TO JOBS THE SENSE OF DWINDLING OPPORTUNITY AND THE URGE TO GET OUT OF CALIFORNIA IT IS AN ARTICLE OF FAITH AROUND THE TABLE THAT LIFE IS BETTER ELSEWHERE PLACES ARE DESCRIBED GLOWINGLY TOWNSPEOPLE IN THIS DEPRESSED SUBURB OF SAN BERNARDINO HAVEN'T EVEN VISITED TIM CARNES A MACHINIST WITH THREE CHILDREN SAYS THAT IN A WEEK HE WILL BE OFF TO LOOK AT PENNSYLVANIA HE HAS NEVER BEEN THERE HE SAYS BUT HE IS THINKING OF MAKING THE MOVE SOME OF THE 11 ADULTS AROUND THE TABLE ARE WORRIED ABOUT WORK OTHERS LIKE MR CARNES ARE PREOCCUPIED WITH CRIME AND SCHOOLS WHICH OF COURSE ARE NATIONAL ISSUES AS WELL THIS IS NO PLACE TO RAISE CHILDREN HE SAYS HEADS NOD ALL AROUND OUT THE RESTAURANT WINDOW A NEIGHBORING BUSINESS PROMISES AGGRESSIVE TRAILER SALES FOR THOSE NEEDING TO CASH OUT QUICKLY IN A TEARFUL EMBRACE A FRIEND TELLS MICHELLE EBARB THE LORD WILL PROVIDE THE EBARBS HEAD TO THE TINY 14FOOT TRAILER THEY HAVE BEEN LIVING IN READY TO LEAVE AT DAWN THERE WAS A TIME WHEN THE EBARBS WERE HAPPY WITH CALIFORNIA THE SUN THE LIFESTYLE AND THE OPPORTUNITY PHILIP AND MICHELLE MET WHILE WORKING AT A GENERAL DYNAMICS CORP MISSILE FACTORY IN 1987 MRS EBARB WHO ATTENDED A COUPLE OF COMMUNITY COLLEGES WAS A LAB TECHNICIAN AND WORKED AT GENERAL DYNAMICS FOR 10 YEARS MR EBARB WHO NEVER FINISHED HIGH SCHOOL HAD A JOB HOISTING PARTS AND MATERIALS BOTH WON PROMOTIONS THEIR LIFE INCLUDED TRIPS WITH THE COMPANY SKI CLUB WEEKENDS AT CAR RACES AND NIGHTS OUT DANCING BRIANNA WAS BORN IN 1988 AND THEY BOUGHT A FUNKY 1920S CLAPBOARD HOUSE THEY LOVED TOGETHER THEY MADE ABOUT 47000 IN 1989 CALIFORNIA COMPANIES WERE GETTING A FIFTH OF PRIME US DEFENSE CONTRACTS TOTALING MORE THAN 120 BILLION IN THE SECOND HALF OF THE 1980S THEN THE COLD WAR ENDED MAJOR DEFENSE CONTRACTS IN THE STATE FELL TO 24 BILLION IN THE FISCAL YEAR ENDED SEPT 30 1991 FROM A 1985 PEAK OF 29 BILLION AND CALIFORNIA BEGAN FEELING OTHER CHILLS RETAIL SALES ARE DOWN A TOTAL OF 4 IN THE PAST TWO YEARS THE STATE'S FIRST DROP SINCE THE DEPRESSION THE SAVINGSANDLOAN CRISIS AND TIGHT MONEY HAVE HURT THE REALESTATE MARKET WHICH SUFFERED ANYWAY AS UNEMPLOYMENT ROSE FROM THE START OF 1991 THROUGH LAST SEPTEMBER THE DOLLAR AMOUNT OF MORTGAGE LOANS FELL 64 NATIONWIDE BUT 11 IN CALIFORNIA THE EBARBS' LIFE CHANGED SUDDENLY WHEN BOTH WERE LAID OFF IN JANUARY 1990 WITHIN A DAY OF EACH OTHER WITH A TODDLER AND A MORTGAGE PAYMENT THEY EXHAUSTED THEIR SAVINGS IN A FEW MONTHS MR EBARB WAS ABLE TO GET A NIGHT JOB DRIVING SNOWGROOMING EQUIPMENT AT A SKI HILL 30 MILES AWAY IT PAID 6 AN HOUR HALF WHAT HE MADE AT GENERAL DYNAMICS AT THE END OF THE SKI SEASON A FRIEND TOLD HIM ABOUT A JOB AT A FURNITURE FACTORY THAT INCLUDED HEALTH INSURANCE AND SO MR EBARB TOOK A PIECEWORK JOB STRETCHING UPHOLSTERY OVER LAZBOY RECLINERS WITH THIS MR EBARB BECAME PART OF AN IMPORTANT CHANGE IN THE SOUTHERN CALIFORNIA ECONOMY A SHIFT FROM LARGE WELLPAYING UNIONIZED FACTORIES TO SMALL NONUNION ENTERPRISES THAT PAY LESS AND RELY MORE ON IMMIGRANT LABOR SINCE 1980 CALIFORNIA HAS BECOME HOME TO MORE THAN 25 MILLION LEGAL AND ILLEGAL IMMIGRANTS BY STATE ESTIMATES THAT'S NEARLY ONE OF EVERY THREE IMMIGRANTS TO THE US MANY OF MR EBARB'S COWORKERS AT LAZBOY HAD COME TO CALIFORNIA FROM MEXICO AND CENTRAL AMERICA MANY WERE FAST WORKERS THEY WERE REALLY PUMPIN' RECALLS MR EBARB WHO HAD TROUBLE MAKING RATE AND WAS TOLD HE WOULD BE FIRED IF HE DIDN'T WORK FASTER A FRIENDLY SUPERVISOR MOVED HIM TO A JOB BUILDING ARMS FOR CHAIRS AND HIS WORK IMPROVED ON A GOOD DAY HE BUILT MORE THAN 200 ARMS AND EARNED A LITTLE OVER 7 AN HOUR MRS EBARB FOUND TEMPORARY WORK TRAINING ENUMERATORS FOR THE 1990 CENSUS THEN MOVED BRIEFLY TO A MORTGAGE COMPANY INTERVIEWING PROSPECTIVE BORROWERS SHE TOOK ODD JOBS DOING ELECTRICAL WORK STILL WITHIN MONTHS CASH WAS SO SHORT THE COUPLE HAD TO SELL THEIR HOUSE AND PUT MOST OF THEIR GOODS IN STORAGE THEY MOVED IN WITH MRS EBARB'S MOTHER AT ONE POINT MRS EBARB DID SOMETHING SHE SAYS SHE HAD NEVER DREAMED OF DOING SHE APPLIED FOR WELFARE I WAS THINKING MAYBE WE COULD GET FOOD STAMPS SHE RECALLS HER VOICE CRACKING BUT SHE DIDN'T QUALIFY IN PART BECAUSE SHE OWNED A CARA TWOYEAROLD HONDA WORTH LESS THAN THE LOAN SHE STILL HAD ON IT THEN SHE HEARD ABOUT APPRENTICESHIPS WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS REJECTED ONCE SHE FOUGHT HER WAY INTO THE FIVEYEAR WORKSTUDY PROGRAM STUDYING AT NIGHT AND DOING ELECTRICAL WORK BY DAY FOR SMALL CONTRACTORS WHO HIRE THROUGH THE UNION HALL SUDDENLY SHE HAD THE PROSPECT OF LEARNING A NEW TRADE BUT AN APPRENTICE'S PAY STARTED AT ONLY ABOUT 7 AN HOUR WHEN THERE WAS WORK SHE WENT FROM JOB TO JOB MORE THAN ONE OF HER EMPLOYERS WENT BROKE THIS TOO WAS A BIG CHANGE FOR SAN BERNARDINO COUNTY WHEN ITS POPULATION WAS SOARING IN THE 1980S DEVELOPERS BUILT FURIOUSLY IN FORMER CITRUS GROVES AND DESERT STARTING 34000 HOMES IN 1986 ALONE BUT WITH THE INFLUX CAME OTHER CHANGES THE COUNTY MURDER RATE CLIMBED 40 IN A DECADE AND NOW IS NEARLY 1 1/2 TIMES THE NATIONAL RATE WHEN I WENT TO HIGH SCHOOL YOU MIGHT WORRY ABOUT SOMEBODY WANTING TO FIGHT SAYS MR EBARB NOW KIDS ARE WORRIED THAT THEY MIGHT BE SHOT THREE BLOCKS FROM MRS EBARB'S MOTHER'S HOUSE BULLET CASINGS WERE FOUND SCATTERED ON THE PLAYGROUND OF A PRIMARY SCHOOL THE SCHOOL BRIANNA WOULD HAVE ATTENDED HAD THE EBARBS REMAINED THE SOUND OF GUNSHOTS IN THE NIGHT AND POLICE HELICOPTERS WERE COMMON EMERGENCY CALLS SQUAWKED FROM A SMALL POLICE RADIO THAT THE EBARBS KEPT WHEN THEY MOVED IN WITH HER MOTHER AND FINALLY AT THE SHOPPING CENTER PHILIP AND MICHELLE WATCHED AS ROBBERS MAKING THEIR ESCAPE SHOT OUT THE FRONT WINDOW OF A LIQUOR STORE IT SCARES YOU IT SCARES YOU A WHOLE LOT SAYS MR EBARB WE DECIDED THAT BRIANNA COULDN'T GROW UP WITH THIS LAST JULY THE EBARBS FLEW TO ARKANSAS TO VISIT MR EBARB'S PARENTS WHO HAD RECENTLY LEFT CALIFORNIA THEN FOR TWO WEEKS THEY TRAVELED THE SOUTH VISITING RELATIVES AND THINKING OF MOVING THEY WOUND UP THE TRIP IN ALABAMA WITH A VISIT TO MRS EBARB'S SISTER BARBARA MURPHY AND HER HUSBAND LOWELL THERE NEAR ROBERTSDALE EAST OF MOBILE WAS PINE FOREST CHEAP LAND AND A SLOWER PACE OF LIVING MRS MURPHY TOOK THE EBARBS TO SEE THE ACREAGE SHE AND HER HUSBAND HAD JUST BOUGHT WE WENT OUT THERE AND INSTANTLY WE FELL IN LOVE WITH IT MRS EBARB RECALLS TEN ACRES OF UNDEVELOPED LAND WERE FOR SALE RIGHT NEXT DOOR AND THE EBARBS CALLED THE REALESTATE AGENT THE PRICE 17500 IT COULD BE THEIRS FOR 175 A MONTH THE EBARBS COULDN'T BELIEVE IT WHAT SEEMED IMPOSSIBLE IN CALIFORNIA WHERE HOUSES AND SMALL PLOTS SELL FOR HUNDREDS OF THOUSANDS OF DOLLARS WAS WITHIN REACH IN RURAL ALABAMA WE PRAYED A LOT HOPING IT WOULD WORK OUT SAYS MRS EBARB THE EBARBS WERE ABLE TO PUT JUST 200 DOWN SUDDENLY A NEW LIFE WAS BEGINNING MRS EBARB FOUND THAT SHE COULD TRANSFER HER APPRENTICESHIP TO AN ELECTRICAL UNION LOCAL IN MOBILE HER HUSBAND WHO WANTED TO DRIVE HEAVY MACHINERY FELT HE HAD A 99 POSSIBILITY OF A DREAM COME TRUE A JOB WITH THE EARTHMOVING COMPANY WHERE HIS BROTHERINLAW WORKED THE EBARBS HEADED BACK TO CALIFORNIA TO SETTLE THEIR AFFAIRS BY THEN THEY WERE NO LONGER LIVING WITH HER MOTHER BUT IN A TINY TRAILER ACQUIRED YEARS AGO FOR VACATIONS NOW LATE AT NIGHT IN SOUTHERN TEXAS MR EBARB IS DRIVING HIS RYDER TRUCK AS FAST AS IT WILL GO 65 MPH HE LISTENS AS THE ROAD COMES ALIVE WITH TRUCKERS GABBING ON CITIZENS' BAND RADIOS BEHIND IN THE FAMILY'S 1984 FORD PICKUP MRS EBARB MICROPHONE IN HAND CHATS WITH OTHER DRIVERS IT HAS BEEN A LONG AND TIRING TRIP THROUGH ARIZONA AND NEW MEXICO DRIVING FROM DAWN TILL LATE INTO THE NIGHT BRIANNA WHO AT FIRST PLAYED QUIETLY ON THE TRUCK SEAT IS COMPLAINING TUESDAY THE FAMILY DALMATIAN IS A LUMP OF BEDRAGGLED BLACK AND WHITE SPOTS STARING OUT THE WINDOW DESCENDING FROM THE MOUNTAINS OF NEW MEXICO INTO EL PASO MR EBARB LOOKS ACROSS THE MUDDY FLATS OF THE RIO GRANDE TO THE CRUMBLING CONCRETE HOVELS OF JUAREZ I GUESS THAT'S WHAT YOU CALL REAL POVERTY HE SAYS AT A REST STOP DOWN THE ROAD A DISHEVELED FELLOW IS BEGGING FOR GASOLINE MONEY MR EBARB SAYS NO HE CAN BARELY AFFORD TO BUY GAS HIMSELF IN THE TEXAS NIGHT HUNDREDS OF MILES FARTHER EAST MRS EBARB TALKS ON THE CB WITH A TRUCKER CALLED CRACKER JACK WHO ASKS WHERE SHE'S FROM CALIFORNIA MRS EBARB REPLIES ADDING THAT HER FAMILY HAS LEFT THE STATE FOR GOOD THERE SEEM TO BE A WHOLE LOT OF PEOPLE MOVING FROM CALIFORNIA RIGHT NOW VOLUNTEERS CRACKER JACK BETWEEN THE RIOTS THE EARTHQUAKES AND THE ECONOMIC CONDITIONS THERE I'M SURPRISED ANYBODY'S LEFT THE EBARBS' TWOTRUCK CONVOY FOLLOWS ROUTE 10 EAST COVERING THE WIDTH OF TEXAS AND LOUISIANA AND SPRINTING ACROSS THE BOTTOM OF MISSISSIPPI THE END IS IN SIGHT WE'RE GOIN' TO ALABAMA TO BUILD US A NEW HOME AND START AGAIN MRS EBARB TELLS CATFISH YET ANOTHER TRUCKER ON THE RADIO BUSINESSES SHE MOANS ARE JUST EATIN' DUST IN CALIFORNIA THEY AIN'T DOIN' MUCH BETTER HERE LADY CATFISH RESPONDS HOPE IT WORKS OUT FOR YA'LL NEAR MIDNIGHT THREE DAYS FROM CALIFORNIA THE EBARBS ROLL INTO ALABAMA PAST THE LIGHTS OF MOBILE REFLECTED ON THE WATERS OF THE BAY AND 40 MILES FARTHER ON TO THE DARKENED STREETS OF ROBERTSDALE A QUIET AGRICULTURAL CENTER THAT IS THE NEAREST TOWN TO WHERE THEY WILL LIVE THE EBARBS ARE SILENT AS THEY PASS THE PECAN SQUARE IGA SUPERMARKET THE CHANGE OF PACE BAR AND A REALESTATE OFFICE THAT PROMISES LOW DOWN PAYMENTS ON WOOD LOTS AT 230 AM THEY WALK INTO THE WAITING ARMS OF THE MURPHYS IN THE MORNING THE TWO COUPLES DRIVE OUT TO THE LAND THEY HAVE BOUGHT ABOUT 20 MILES FROM ROBERTSDALE MRS EBARB POINTS OUT A PRETTY BRICK BUILDING WITH WHITE TRIM IN A GROVE OF OAK TREES THAT'S GOING TO BE YOUR SCHOOL BRIANNA SHE TELLS THE GIRL THEIR PICKUP TRUCKS STOP IN A GROVE OF PINES THERE'S A SOFT LIGHT THROUGH THE TREES THE DIRT IS RED BARBARA MURPHY HAS BEEN CLEARING LAND FOR THE TRAILER THAT WILL TEMPORARILY HOUSE BOTH FAMILIES AS MICHELLE EBARB CLIMBS DOWN FROM THE TRUCK TEARS WELL UP IN HER EYES OH MY GOODNESS SHE SAYS HUGGING HER HUSBAND THIS IS IT HONEY THIS IS WHERE WE'RE GOING TO SPEND THE REST OF OUR LIVES AS DAYS PASS REALITY INTRUDES MICHELLE THOUGH STUDYING IN A UNION APPRENTICE SYSTEM DOESN'T YET HAVE UNION WORK UNTIL THEN SHE IS EARNING 5 AN HOUR AS A TRUCKSTOP CASHIER 6 AN HOUR WHEN SHE WORKS THE GRAVEYARD SHIFT PHILIP HAS HIS DREAM JOB DRIVING BULLDOZERS BUT TO GET IT HE HAD TO CUT HIS SHOULDERLENGTH HAIR AND GET RID OF AN EARRING HE LOOKS LIKE A REGULAR REDNECK NOW OVERALLS AND ALL HIS WIFE TEASES TO REALLY LIVE THE DREAM THE EBARBS HAVE ACQUIRED A HORSE TO GO WITH THEIR LAND SWAPPING A WASHING MACHINE A DRYER AND A BED IN THE DEAL WE'RE WORKING AWFUL HARD BUT IT'S PEACEFUL HERE MICHELLE EBARB SAYS AND I'M SATISFIED I'D NEVER GO BACK TO CALIFORNIA SEE RELATED LETTER LETTERS TO THE EDITOR THE WORK INCENTIVE AT LAZBOY FACTORY WSJ FEB 18 1993 9301190082 9302180115 930125 THE DEFICIT OBSESSION BY LAWRENCE A KUDLOW CLEARLY THE DEFICIT IS TAKING CENTER STAGE AGAIN FOR PRESIDENT CLINTON AND HIS ECONOMIC TEAM AT HIS INAUGURATION MR CLINTON CALLED FOR SACRIFICE TO CONTROL THE DEFICIT HENCE APPARENTLY THE MIDDLE CLASS MUST SACRIFICE ITS TAX CUT AT THEIR CONFIRMATION HEARINGS LLOYD BENTSEN THE NEW TREASURY SECRETARY AND LEON PANETTA DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET SPOKE IN A SIMILAR WAY UNFORTUNATELY WALL STREET ECONOMISTS ARE FOLLOWING MR CLINTON'S LEAD AGAIN LINKING DEFICIT ESTIMATES WITH THE INTEREST RATE AND ECONOMIC OUTLOOK THE ONLY TROUBLE WITH THIS DEFICIT OBSESSION IS THAT IT CONFUSES CAUSE WITH EFFECT IT IS NOT THE DEFICIT PER SE THAT IS THE PROBLEM BUT RATHER THE TAXING SPENDING REGULATORY AND MONETARY POLICIES THAT HELP TO DETERMINE INTEREST RATES THE ECONOMY'S PERFORMANCE AND THUS THE DEFICIT UNLESS THE TRUE CAUSE OF THE DEFICIT IS PROPERLY DIAGNOSED THERE WILL NEVER BE ANY PERMANENT PROGRESS TOWARD DEFICIT REDUCTION THE SINGLE BEST MEASURE OF THE BUDGET'S IMPACT ON THE ECONOMY IS NOT THE DEFICIT BUT THE SHARE OF GROSS DOMESTIC PRODUCT ABSORBED BY FEDERAL SPENDING SINCE 1988 THIS RATIO HAS INCREASED TO 235 FROM 217 EXCLUDING DEPOSIT INSURANCE INDEED SINCE 1965 WHEN IT WAS 176 THIS FRACTION HAS GROWN TO A PEAK OF 243 IN 1983 DROPPED TO A LOW OF 217 IN 1989 AND THEN MOVED BACK UP TO THE 235 LEVEL FOR 1992 DURING THIS ENTIRE 28YEAR PERIOD THE REVENUE SHARE OF THE ECONOMY HAS AVERAGED 186 NEVER DROPPING BELOW 174 OR RISING ABOVE 201 DURING 198384 WHEN PRESIDENT REAGAN REDUCED MARGINAL INCOME TAX RATES THE AVERAGE NATIONAL TAX RATE HELD AT 181 IN 1992 THE REVENUE SHARE OF GDP REGISTERED 186 EXACTLY THE AVERAGE OF THE ENTIRE 196592 PERIOD WHAT DO THESE NUMBERS MEAN FOR ONE THING THAT THE DEFICIT SHARE OF GDP WHICH STOOD AT 02 IN 1965 AND ROSE TO 49 IN 1992 IS ENTIRELY EXPLAINED BY THE RISE IN FEDERAL SPENDING ALL THE TALK ABOUT EXCESSIVE 1980S TAX CUTS CAUSING THE DEFICIT IS WRONG BUT OVERSPENDING IS ONLY PART OF THE PROBLEM BY ITS VERY NATURE GOVERNMENT SPENDING IMPEDES ECONOMIC GROWTH UNLIKE THE PRIVATE SECTOR THE GOVERNMENT IS NOT DISCIPLINED BY THE MARKETPLACE NOR IS IT SUBJECT TO BOTTOMLINE PROFIT CONSIDERATIONS GOVERNMENT PROGRAMS ARE DRIVEN BY POLITICAL DECISIONS AND BUREAUCRATIC INCENTIVES AS SUCH THEY TOO OFTEN ARE INEFFICIENT OR REDUNDANT AND THEY DEVELOP A LIFE OF THEIR OWN CONTINUING LONG AFTER THEIR REASON FOR BEING HAS DISAPPEARED THE SOUTH NOW HAS ALL THE ADVANCED ELECTRIC UTILITY AND TELEPHONE SERVICES YET RURAL ELECTRIFICATION SUBSIDIES STARTED IN THE 1930S LIVE ON THE POSTAL SERVICE IS BEING OVERTAKEN BY FAX MACHINES AND FIRMS IN THE PRIVATE SECTOR BUT FEDERAL ASSISTANCE CONTINUES THERE ARE MANY OTHER EXAMPLES FEDERAL LAND ACQUISITIONS AGRICULTURAL SUBSIDIES EXPORT ENHANCEMENT PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS THE SMALL BUSINESS ADMINISTRATION AND ON AND ON YET MR CLINTON'S TEAM SEEMS TO BE LOOKING TO TAXES TO FIX THE DEFICIT NOT SPENDING CUTS AT THEIR CONFIRMATION HEARINGS MESSRS PANETTA AND BENTSEN BOTH TESTIFIED STRONGLY IN SUPPORT OF THE 1990 BUDGET DEAL UNFORTUNATELY ITS HIGHER TAXES ON PERSONAL INCOME BUSINESS AND SOCALLED LUXURY SALES DID NOT REDUCE THE DEFICIT WHICH MOVED TO 5 OF GDP BY 1992 FROM 31 IN 1990 NOR DID IT REVIVE ECONOMIC GROWTH OR CREATE JOBS INDEED HIGHER TAX BURDENS ON INCOME AND SALES GENERATED LOWER ECONOMIC OUTPUT AND FEWER JOBS THAN WOULD HAVE OTHERWISE BEEN THE CASE ECONOMIC RECOVERY DID NOT TRULY MATERIALIZE UNTIL 1992 AFTER THE PRIVATE SECTOR ADJUSTED TO THE POLICY SHOCKS OF 1990 AND EVEN NOW THE RECOVERY RATE REMAINS BELOW PAR YET THE POLICY OPTIONS EMANATING FROM THE BENTSENPANETTA CONFIRMATION HEARINGS ARGUED FOR STILL HIGHER TAX RATES THE TOP INCOME TAX BRACKET WOULD MOVE UP TO 36 ALONG WITH A 10 SURTAX ON MILLIONAIRES WITH ONLY VERY NARROW IMPROVEMENT FOR THE TREATMENT OF CAPITAL GAINS AND BUSINESS INVESTMENT TO THIS MIGHT BE ADDED CORPORATE TAXRATE HIKES VALUEADDED TAXES AND A GASOLINE TAX AT THE SAME TIME THERE IS VERY LITTLE TALK OF A TRULY RIGOROUS BUDGET SCRUB THAT WOULD ELIMINATE OR SUBSTANTIALLY REDUCE UNNECESSARY SPENDING PROGRAMS IN OTHER WORDS THOSE WHO HAVEN'T LEARNED THE MISTAKES OF THE PAST ARE ABOUT TO REPEAT THEM THE CLINTON ADMINISTRATION SEEMS POISED TO EMBARK ON YET ANOTHER HIGHTAX AUSTERITY PROGRAM THAT WILL NEITHER MOVE THE ECONOMY TOWARD 4 GROWTH NOR SUBSTANTIALLY NARROW THE DEFICIT THROUGHOUT ECONOMIC HISTORY THIS TRUTH REMAINS WHEN SOMETHING IS TAXED MORE WE GET LESS OF IT WHEN INCOME INVESTMENT AND SALES ARE TAXED MORE WE HAVE LESS OF THEM WHEN AFTERTAX REWARDS ARE REDUCED PRODUCTIVITY AND RISKTAKING DIMINISH WHEN RETAIL ITEMS ARE TAXED MORE INCLUDING GASOLINE FEWER SALES RESULT WHEN THE COST OF DOING BUSINESS RISES PROFITS DECLINE ALONG WITH OUTPUT AND EMPLOYMENT FROM 1985 THROUGH 1989 THE FOUR YEARS PRECEDING THE 1990 DEBACLE THE US ECONOMY GREW AT AN INFLATIONADJUSTED ANNUAL RATE OF 33 WHICH GENERATED NOMINAL BUDGET REVENUE GROWTH OF 78 A YEAR IF MORE CONSTRUCTIVE TAX AND REGULATORY POLICIES HAD BEEN APPLIED OVER THE NEXT THREE YEARS EVEN WITH THE SLOWDOWN OF INFLATION A PLAUSIBLE PATH OF 6 1/2 ANNUAL REVENUE GROWTH WOULD HAVE GENERATED 1992 REVENUE OF 1275 TRILLION THE ACTUAL LEVEL WAS 183 BILLION LESS THAN THAT THIS STRONGER ECONOMIC PERFORMANCE ALONE WOULD HAVE NARROWED THE BUDGET DEFICIT TO 104 BILLION OR ROUGHLY 17 OF REESTIMATED GDP MEANWHILE LOWER COUNTERCYCLICAL SPENDING WOULD HAVE NARROWED THE DEFICIT BY AN ADDITIONAL 20 BILLION OR SO TO 14 OF GDP SUCH IS THE BUDGETARY IMPORTANCE OF ECONOMIC GROWTH THE LESSON IS SIMPLE WITHOUT RISING CAPITAL FORMATION OUTPUT AND EMPLOYMENT THERE WILL BE NO SUSTAINED DEFICIT REDUCTION A 4 REAL GROWTH RATE THE PROPER TARGET CAN BE ACHIEVED ONLY THROUGH TAX AND REGULATORY POLICIES THAT REDUCE CAPITAL AND LABOR COSTS AND RAISE INVESTMENT AND EMPLOYMENT RETURNS ACROSS THE BOARD WHAT SORTS OF POLICIES ARE NECESSARY TO ACHIEVE A 4 REAL GROWTH TARGET AT A BARE MINIMUM BOTH CAPITAL GAINS AND BUSINESS DEPRECIATION SCHEDULES SHOULD BE IMMEDIATELY INDEXED TO PROTECT AGAINST INFLATION BEYOND THIS MR CLINTON'S TEAM SHOULD DEVELOP A MULTIYEAR PHASEIN OF INCOMETAX CREDITS OR A PAYROLL TAXRATE REDUCTION A REDUCTION IN THE CAPITALGAINS TAX RATE FOR ALL ASSETS INCLUDING JACK KEMP'S PROPOSED ENTERPRISE ZONES ACCELERATED DEPRECIATION SCHEDULES AND AN END TO THE DOUBLE TAXATION OF CORPORATE DIVIDENDS IN SHORT NATIONAL ECONOMIC POLICIES SHOULD REWARD RISKTAKING AND ECONOMIC ACHIEVEMENT NOT PUNISH IT AT THE SAME TIME POLICY MAKERS SHOULD UNDERTAKE A THOROUGH BUDGET REVIEW FROM THE BOTTOM UP EVERY FUNCTION EVERY ACCOUNT AND EVERY LINE ITEM MUST BE CAREFULLY EXAMINED HIDDEN ECONOMIC COSTS MUST BE UNCOVERED UNNECESSARY AND LOWPRIORITY PROGRAMS MUST BE CURTAILED OR ELIMINATED ENTITLEMENT PROGRAMS MUST BE REFORMED POORLY MANAGED ASSETS SHOULD BE SOLD TO THE HIGHEST BIDDER WASTEFUL ADMINISTRATIVE OVERHEAD MUST BE CURBED THROUGH ATTRITION FOR MORE THAN 10 YEARS NEARLY EVERY PRIVATE ENTERPRISE IN THE US HAS UNDERTAKEN THIS EXERCISE NOW IT IS HIGH TIME FOR THE FEDERAL GOVERNMENT TO DO EXACTLY THE SAME ECONOMIC GROWTH WILL DEPEND ON A COMBINATION OF POLICIES A REDIRECTION OF TAX AND REGULATORY PROGRAMS TO PROMOTE LOWER COSTS AND HIGHER AFTERTAX REWARDS AND A RESTRUCTURING OF GOVERNMENT TO ELIMINATE WASTEFUL SPENDING IF WE RETURN TO THAT ALLIMPORTANT RATIO OF GOVERNMENT SPENDING TO GDP THE TRICK IS TO UNDERTAKE POLICIES THAT WILL GROW THE DENOMINATOR'S SUPPLY GDP AND LESSEN THE NUMERATOR'S DEMAND THE BUDGET THE FEDERAL RESERVE IS DOING ITS JOB BY MOVING THE ECONOMY TOWARD PRICE STABILITY AND LOW INTEREST RATES NOW IT IS TIME FOR THE LEGISLATIVE AND EXECUTIVE BRANCHES TO EMBARK ON LONG OVERDUE REFORMS CAN THE CLINTON ADMINISTRATION AND THE NEW CONGRESS DO IT ONE HAS ONE'S DOUBTS ALONG WITH GEORGE BUSH AND HIS ADVISERS MESSRS BENTSEN AND PANETTA WERE KEY ARCHITECTS OF THE FAILED ECONOMIC POLICIES OF THE PAST SEVERAL YEARS MR PANETTA HAS RECENTLY ARGUED FOR HIGHER TAXES AND EASIER MONEY BUT THIS NOTION OF REDUCING THE SUPPLY OF GOODS THROUGH HIGHER TAXES THEN SUBSTITUTING MORE MONEY FOR THE LOST VOLUME OF GOODS IS A SURE WAY TO REENACT THE STAGFLATION OF THE 1970S AT THE END OF THE DAY LET US HOPE THAT MR PANETTA AND THE REST OF MR CLINTON'S TEAM CAN QUICKLY BECOME STUDENTS OF HISTORY A GOOD DEAL OF WISDOM CAN BE GLEANED FROM THE PAST ESPECIALLY THE RECENT PAST MR KUDLOW IS CHIEF ECONOMIST AT BEAR STEARNS SEE RELATED LETTER LETTERS TO THE EDITOR POSTAL SERVICE RECEIVES NO FEDERAL SUBSIDIES WSJ FEB 18 1993 9301250071 9302180114 930125 RIGHT FROM WRONG GENERATION GAP AT BSCHOOL BY MARY SHERRY I AM A 52YEAROLD STUDENT IN AN MBA PROGRAM EVEN THOUGH MY SCHOOL REQUIRES AT LEAST TWO YEARS OF REALLIFE WORK EXPERIENCE PRIOR TO ADMISSION FEW OF MY CLASSMATES HAVE HAD AS MUCH REAL LIFE AS I FROM THIS PERSPECTIVE I VIEW BUSINESS SCHOOLS' NEW FOCUS ON ETHICS WITH INTEREST HERE'S HOW MY SCHOOL'S DECREE THAT EVERY COURSE MUST HAVE AN ETHICS COMPONENT WAS APPLIED IN A RECENT SESSION OF MY MANAGERIAL ACCOUNTING CLASS THE INSTRUCTOR PRESENTED A SCENARIO IN WHICH A CAR OWNER'S INSURER PAID FOR A STOLEN CAR PHONE AFTER THE PHONE HAD BEEN REPLACED BY THE CAR OWNER'S EMPLOYER THE QUESTION IF YOU WERE THE CAR OWNER WOULD YOU KEEP THE MONEY TURN THE MONEY OVER TO THE EMPLOYER OR REFUSE THE MONEY SINCE THE PHONE HAD ALREADY BEEN REPLACED NEARLY HALF THE CLASS OF TWENTY AND THIRTYSOMETHINGS SAID THEY WOULD KEEP THE MONEY I WAS STUNNED I WAS PREPARED TO HEAR A FEW SAY THEY WOULD KEEP THE MONEY BUT I DIDN'T EXPECT THE NUMBER TO BE SO DISTURBING NOR DID I THINK THE REMAINDER OF THE CLASS WHILE HOLDING ON TO ITS OWN OPINION WOULD NOT TRY TO CHANGE THE MINDS OF THE OTHERS WE DISCUSSED POPULAR RATIONALIZATIONS FOR SUCH BEHAVIOR ETHICAL FAILURES OF BUSINESS IN GENERAL AND SOCIETY AS A WHOLE AND THE SENSE THAT IF YOU CAN'T BEAT 'EM JOIN 'EM ZOE BAIRD HOW DID WE GET THIS WAY I SAID THAT WIDESPREAD SANCTION OF THESE PRACTICES ENSUES WHEN ETHICAL CONSIDERATIONS HAVEN'T BEEN TAUGHT IN SCHOOL FOR THE PAST 25 YEARS THE INSTRUCTOR POUNCED ON THAT NOTING THAT PLENTY OF PEOPLE OF MY GENERATION HAD COMMITTED BIGTIME ETHICAL VIOLATIONS I AGREED BUT STUCK TO MY POINT ETHICAL BEHAVIOR WAS TAUGHT IN THE PAROCHIAL ELEMENTARY SCHOOL I ATTENDED BUT TODAY IT HAS BEEN ABANDONED IN MOST CLASSROOMS FOR VALUES CLARIFICATION OR VALUES JUSTIFICATION THE INSTRUCTOR SENSING DANGER PROTESTED THAT HE DID NOT WANT TO GET INTO GENERATIONAL CONFLICT HERE I COULDN'T HAVE AGREED MORE AS IT OCCURRED TO ME THAT WE WERE IN THIS FIX BECAUSE MY GENERATION HAD DROPPED THE ETHICAL BALL I SAID THIS TO THE CLASS SOON AFTER THE JOSEPHSON INSTITUTE FOR ETHICS' REPORT ON ETHICAL VALUES IN AMERICAN SCHOOLS WAS RELEASED SOME OF ITS FINDINGS ONE IN EIGHT COLLEGE STUDENTS ADMITS TO FRAUD THREEFIFTHS OF HIGH SCHOOL STUDENTS AND ONETHIRD OF COLLEGE STUDENTS SAY THEY ARE WILLING TO LIE TO GET A JOB HAD WE FIFTYSOMETHINGS BECOME THE TEACHERS 25 YEARS AGO WHEN WE BOUGHT INTO THE IF IT FEELS GOOD DO IT PROGRAM AND THE WELL EVERYBODY ELSE DOES IT JUSTIFICATION WE FAILED TO PASS ON THE VALUES THAT WERE HANDED TO US WAS IT TOO MUCH TROUBLE WERE WE UNSURE OF OUR OWN CONVICTIONS OR DID WE JUST NOT WANT TO PRACTICE WHAT WE MIGHT HAVE PREACHED MY ANCIENT CATECHISM SAID A FIRM SENSE OF OBJECTIVE RIGHT AND WRONG OCCURS UPON REACHING THE AGE OF REASON WHICH THE 1950S CATHOLIC CHURCH DECLARED TO BE AGE SEVEN BUT SURELY WE CANNOT LEAVE IT AT THAT OR OUR WHOLE PERCEPTION OF ETHICAL BEHAVIOR WOULD BE FROZEN BEFORE WE REACH AGE 10 CHILDREN NEED CONSTANT REINFORCEMENT AS THEIR LIVES BECOME MORE COMPLEX THAT'S WHERE MY GENERATION HAS FAILED WE HAVEN'T DONE SUCH A HOT JOB OF DIRECTLY TEACHING OR EVEN HINTING AT A DISTINCT SENSE OF OBJECTIVE RIGHT AND WRONG GIVING ETHICS LESSONS THEY MISSED EARLIER TO 25YEAROLDS MAY NOT PRODUCE ANY BIG RESULTS YET I DO SEE A VALUE IN ADDRESSING THE QUESTION OF ETHICS IN BUSINESS SCHOOL ONE OF MY YOUTHFUL CLASSMATES WHOSE JOB IT IS TO MONITOR HIS SUPERIORS' EXPENSE ACCOUNTS LAMENTED WHEN I SEE THE KINDS OF THINGS THEY CHARGE OFF I GET MAD AND I WONDER HOW THEY CAN DO THIS I FEEL GUILTY IF I ASK FOR COMPENSATION FOR OVERTIME HE IS NOT GOING TO LEARN ANYTHING ABOUT ETHICS IN THIS CLASS BUT HE HAS THE CONSOLATION OF EXPRESSING FRUSTRATION AND RECEIVING AFFIRMATION THAT HE IS DOING THE RIGHT THING HE NEEDS TO HEAR THIS FROM SOMEONE AT SOME TIME BSCHOOL IS AS GOOD A TIME AS ANY MS SHERRY HEADS THE BETHESDA MDBASED ECONOMIC RESEARCH COUNCIL WHICH STUDIES CAPITAL INVESTMENT BY INDUSTRY SEE RELATED LETTERS LETTERS TO THE EDITOR WE'VE SEEN THE UNETHICAL AND HE IS US WSJ FEB 18 1993 9301250082 9302170185 930217 LETTERS TO THE EDITOR BIG BLUE NEEDS A COLOR CHANGE I TAKE ISSUE WITH MARK STAHLMAN'S EXPLANATION THAT IBM HAS FAILED BECAUSE THE COMPANY'S SENIOR MANAGERS HAVE MISUNDERSTOOD THE COMPETITIVE DYNAMICS OF THE COMPUTER MARKETPLACE IN HIS JAN 6 EDITORIALPAGE ARTICLE CREATIVE DESTRUCTION AT IBM HE SUGGESTS THAT IBM'S MANAGEMENT FAILED TO VIEW THE DATA PROCESSING INDUSTRY AS BEING COMPOSED OF MULTIPLE INDUSTRIES AND HE DENIGRATED IBM'S UNIFYING SYSTEMS APPLICATION ARCHITECTURE STRATEGY AS A CULPRIT IN IBM'S DISMAL PERFORMANCE WHILE IBM AND THE INDUSTRY ARE FAR TOO COMPLEX TO REDUCE FAULT DOWN TO SIMPLISTIC TERMS CATEGORIZING THE IBM FAILURE TO LACK OF UNDERSTANDING THE MARKET OR TO ITS FEEBLE ATTEMPT AT UNIFYING ITS PRODUCT LINES IS IN MY OPINION MISSING THE MARK WHAT IBM MANAGEMENT HAS EMINENTLY DISPLAYED IS A REMARKABLE LACK OF VISION AND LEADERSHIP IN THE PRACTICAL APPLICATION OF TECHNOLOGY THIS BLINDNESS LED TO A GATEKEEPING ADMINISTRATION THAT IRONICALLY PERPETUATED PRACTICES THAT SHOULD HAVE BEEN ABANDONED WHILE ABANDONING PRACTICES THAT SHOULD HAVE BEEN FOLLOWED SCRUPULOUSLY IN THIS CONTEXT JOHN AKER'S PROTECTION OF MAINFRAMES IS NO DIFFERENT THAN TOM WATSON SR'S PROTECTION OF TABULATING EQUIPMENT WHILE MR STAHLMAN GIVES MR WATSON CREDIT FOR UNDERSTANDING CHANGE THE FOUNDER OF THE BLUE GIANT ACTUALLY RESISTED COMPUTER DEVELOPMENT IN ORDER TO PROTECT IBM'S TABULATING EQUIPMENT PRODUCT LINE IT WAS THE VISION OF MANY IBMERS INCLUDING TOM WATSON JR AND VINCE LEARSON WHO RISKED THE WRATH OF MR WATSON SR TO MOVE THE WORLD LITERALLY INTO COMPUTER AUTOMATION STEALING THE LEAD FROM SPERRY RAND UNIVAC AND IBM DOES NOT LACK FOR PEOPLE WHO HAD THE VISION TO MOVE THE FIRM INTO DISTRIBUTED DATA PROCESSING PERHAPS THE LACK OF A CHAMPION WITH THE ADDED ASSET OF BEING THE CEO'S SON PREVENTED SUCH VISION TO PREVAIL EVIDENCE THAT SOME IBMERS HAVE WELLTARGETED VISIONS THAT WENT ASTRAY BY HAZY SKIES AROUND ARMONK IS LENGTHY SBS SATELLITE BUSINESS SYSTEMS A VENTURE THAT COULD HAVE EVOLVED INTO THE VERY NETWORK MOTOROLA CURRENTLY IS PLANNING TO BUILD WAS NEVER INCLUDED IN IBM'S BASIC COMMUNICATIONS SUPPORT PURCHASING ROLM ON AN EMOTIONAL WHIM EMBRACING OPEN SYSTEMS INTERCONNECTION IN A BEGRUDGING MANNER NOT FULLY DELIVERING ON ITS INFERENCES THAT NETVIEW WOULD MANAGE A NETWORK OF MULTIVENDOR EQUIPMENT ETC PERHAPS THE BEST EXAMPLE OF GATEKEEPER MANAGEMENT IS THE INCREDIBLE SITUATION WHERE IBM FAILED TO HAVE SOME OWNERSHIP IN THE OPERATING SYSTEM FOR ITS FIRST GENERATION OF PCS SOME MIGHT EVEN VIEW THAT FAILURE AS GROSS MISMANAGEMENT REMEMBER IBM IS THE FIRM THAT PULLED OUT ALL THE INTERNATIONAL STOPS TO GET FUJITSU TO PAY FOR USING ELEMENTS OF ITS MAINFRAME OPERATING SYSTEM THE FIRM THAT SUED NCR/COMTEM FOR ALLEGEDLY USING A MODULE OF SNA COMMUNICATIONS CODE CERTAINLY IBM KNEW AND UNDERSTOOD THE IMPORTANCE OF OPERATING SYSTEM OWNERSHIP IF IBM HAD NOT MADE THAT MISSTEP THE THOUGHT THAT THE MARKET VALUE OF MICROSOFT COULD EXCEED IBM'S IN A FEW SHORT WEEKS WOULD BE CONSIDERED LUNATIC THAT'S THE PAST AND UNTIL THE HELM IS OCCUPIED BY A TRUE VISIONARY THE OPPORTUNITIES WILL CONTINUE TO BYPASS IBM THERE ARE STRATEGIES WHERE THE MAINFRAME COULD STEM THE TIDE OF MICROBASED SERVERS THERE ARE IBMERS WHO UNDERSTAND HOW MAJOR CAPITAL INVESTMENTS CURRENTLY BEING MADE BY THE COMMON CARRIERS COULD BREATHE NEW LIFE INTO MAINFRAMES THERE ARE IBMERS WHO UNDERSTAND THAT MORE THAN 20 MILLION IBM 3270 TERMINALS COULD BE REPLACED BY RADIOBASED TERMINALS THAT WITH THE APPROPRIATE SYSTEMS SUPPORT COULD COSTEFFECTIVELY CHEW UP MAINFRAME CYCLES WELL BEYOND THEIR REPLACED 3270S YET WITHOUT THE PROPER LEADERSHIP IBM IGNORES THIS OPPORTUNITY INSTEAD IT CONTEMPLATES SELLING PCS AS RADIO GATEWAYS TO MICROBASED APPLICATION PROCESSORS THIS IS SELLING A COMMODITY WHILE A THIRD PARTY PROVIDES THE HIGHMARGIN VALUED ADDED SOFTWARE THE CRIME GOES BEYOND AFFECTING IBM'S FORTUNES WHETHER ONE IS AN IBM DEVOTEE OR NOT ONE HAS TO ADMIT THAT IBM BROUGHT STRUCTURE TO THE MAINFRAME ARENA WITH MINOR EXCEPTIONS MAINFRAMES ARE IBMCOMPATIBLE THE BENEFITS TO ALL END USERS BOTH IN FINANCIAL AND OPPORTUNITY TERMS CANNOT BE OVEREVALUATED EVEN IBM'S COMPETITORS BENEFITED IBM PROVIDED THEM WITH A LIVING MODEL OF THE IMPORTANCE OF STANDARDIZATION GALVANIZING THEM INTO COOPERATION WITH ONE ANOTHER RESULTING IN THE HEALTHY EVOLUTION OF INTERNATIONAL STANDARDS STANDARDS THAT SAVE VENDORS INCREDIBLE AMOUNTS OF DEVELOPMENT DOLLARS RECENTLY IBM EMPLOYED A MARKETING THEME CENTERED AROUND THE PHRASE A NEW SHADE OF BLUE IT EPITOMIZED THE IBM CONDITION VERY WELL THE FIRM CONTINUES TO PLAY WITH TINTS WHEN WHAT IT NEEDS IS A CHANGE IN COLOR AND THE COLOR GUARD 9302170182 930217 TRAVEL AGENTS' GROUP CRITICIZES US SUIT AGAINST EIGHT AIRLINES WASHINGTON THE NATION'S LARGEST ASSOCIATION OF TRAVEL AGENTS DENOUNCED THE JUSTICE DEPARTMENT'S PRICEFIXING LAWSUIT AGAINST EIGHT US AIRLINES SAYING THE ACTION COULD HURT CONSUMERS AND CAUSE TURMOIL IN THE TRAVEL INDUSTRY IN DECEMBER THE JUSTICE DEPARTMENT CHARGED THE AIRLINES WITH ILLEGALLY RAISING TICKET PRICES THROUGH A COMPUTERIZED FARE DATABASE TWO AIRLINES NAMED IN THE SUIT UAL CORP'S UNITED AIRLINES AND USAIR GROUP INC'S USAIR REACHED A SETTLEMENT BY SIGNING A CONSENT DECREE WITH THE DEPARTMENT UNITED AND USAIR ADMITTED NO WRONGDOING AND SAID THEY SIGNED THE DECREE TO AVOID THE COST OF LITIGATION THE DECREE WHICH IS SUBJECT TO APPROVAL BY THE US DISTRICT COURT IN WASHINGTON SEEKS TO MUFFLE THE ELECTRONIC DIALOGUE THAT THE DEPARTMENT SAYS IS USED TO SIGNAL PRICE CHANGES TO DETERMINE WHETHER RIVAL CARRIERS ARE GOING TO MATCH FARE INITIATIVES THE DECREE AMONG OTHER THINGS WOULD PROHIBIT AIRLINES FROM COMMUNICATING THROUGH THE COMPUTER SYSTEM ABOUT THE FIRST AND LAST DATES OF FARE CHANGES EXCEPT WHEN AN ENDING DATE OF A PROMOTIONAL FARE IS ADVERTISED IN THE GENERAL MEDIA AN OFFICIAL OF THE AMERICAN SOCIETY OF TRAVEL AGENTS WHICH REPRESENTS 15000 TRAVEL AGENCIES SAID IN A NEWS CONFERENCE THAT THE PROPOSED SETTLEMENT WOULD DRASTICALLY RESTRICT CONSUMERS' ABILITY TO ATTAIN BASIC FARE INFORMATION AND ENTANGLE THE GOVERNMENT AS A PRICE REGULATOR PEOPLE ARE GOING TO END UP PAYING MUCH HIGHER PRICES FOR TICKETS SAID PAUL RUDEN THE TRAVEL ASSOCIATION'S SENIOR VICE PRESIDENT FOR LEGAL AFFAIRS DEMAND FOR AIR TRANSPORTATION IS A RESULT OF PRICE AND HOW EASY IT IS TO BOOK FLIGHTS AT THE BEST FARE WHEN YOU BEGIN TO INTERFERE WITH THE INFORMATION THAT IS AT THE CORE OF THAT PROCESS YOU'RE GOING TO CAUSE A LOT OF PEOPLE TO STOP BUYING THE OTHER AIRLINES NAMED THE SUIT ARE ALASKA AIR GROUP INC'S ALASKA AIRLINES AMR CORP'S AMERICAN AIRLINES CONTINENTAL AIRLINES HOLDINGS INC'S CONTINENTAL AIRLINES DELTA AIR LINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND TRANS WORLD AIRLINES THEY SAY THE DEPARTMENT'S ALLEGATIONS ARE WITHOUT MERIT AND OPPOSE THE CONSENT DECREE 9302170181 930217 MARKETING & MEDIA SONY MUSIC LAUNCHES NEW LABEL TO MARKET FOREIGN ACTS IN US NEW YORK SONY MUSIC SAID IT IS LAUNCHING A NEW RECORD LABEL TRISTAR MUSIC GROUP WHICH WILL RELEASE AND MARKET FOREIGN ACTS IN THE US PRESIDENT OF THE NEW YORKBASED LABEL WHICH WILL START OPERATIONS IN APRIL WILL BE INDUSTRY VETERAN BOB BUZIAK MR BUZIAK 49 YEARS OLD IS A FORMER PRESIDENT OF RCA RECORDS NOW A UNIT OF BERTELSMANN AG HE MOST RECENTLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF A SMALL INDEPENDENT LABEL CHAMELEON ENTERTAINMENT A SONY SPOKESWOMAN SAID TRISTAR MUSIC WON'T HAVE ANY DIRECT AFFILIATION WITH SONY CORP'S TRISTAR PICTURES AND ISN'T EXPECTED TO RELEASE SOUNDTRACKS BUT THE TRISTAR NAME WAS CHOSEN FOR BRAND AWARENESS AND ITS ASSOCIATION TO SONY RECORDS ARE INCREASINGLY BEING MARKETED ON A GLOBAL BASIS REGARDLESS OF AN ARTIST'S NATIONALITY BUT EXPORTING ANGLOAMERICAN ROCK AND POP STARS HAS ALWAYS BEEN FAR EASIER THAN IMPORTING EUROPEAN OR ASIAN ACTS TO THIS COUNTRY MOST RECORD COMPANIES FUNNEL THEIR FOREIGN ALBUMS THROUGH THE SAME US DIVISIONS THAT PROMOTE AND MARKET US ACTS AND MUCH OF THE TIME THEY GET SHORT SHRIFT TRISTAR MUSIC IS THE FIRST EFFORT BY A US RECORD COMPANY TO FOCUS EXCLUSIVELY ON SELLING FOREIGN ACTS HERE MOSTLY ON SONY'S LABELS BUT IN SOME CASES FOREIGN ACTS THAT DON'T HAVE AN AMERICAN DISTRIBUTOR THE UNIT WON'T USE SONY'S RECORD DISTRIBUTION SYSTEM INSTEAD TRISTAR ALBUMS WILL BE DISTRIBUTED BY RELATIVITY ENTERTAINMENT DISTRIBUTION INC AN INDEPENDENT DISTRIBUTOR 50OWNED BY SONY RELATIVITY FOCUSES ON SPECIALIZED MARKETBYMARKET GRASSROOTS DISTRIBUTION RATHER THAN MASSMARKET DISTRIBUTION REPERTOIRE FROM PLACES LIKE BRAZIL OR DENMARK OR WHATEVER JUST GETS LOST IN THE SHUFFLE WHEN YOU TRY AND SELL IT ALONG WITH THE BIGGEST ROCK GROUPS IN AMERICA SAID CHRIS ROBERTS VICE PRESIDENT INTERNATIONAL MARKETING FOR POLYGRAM A RECORD COMPANY 80 OWNED BY DUTCH PHILIPS ELECTRONICS NV WHAT MOST LABELS DO DOESN'T WORK AND I THINK THIS IS A SHREWD SOLUTION 9302170180 930217 BUSINESS BRIEF RETIREE HEALTH COSTS TO RESULT IN CHARGE OF 7 BILLION AT AT&T NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT EXPECTS TO TAKE A CHARGE OF ABOUT 7 BILLION IN THE FIRST QUARTER TO REFLECT ACCUMULATED RETIREE HEALTHCOST LIABILITIES THE NONCASH CHARGE WAS CLOSER TO THE HIGH END OF AT&T'S PREVIOUS ESTIMATED RANGE OF 55 BILLION TO 75 BILLION UNDER A NEW CORPORATE ACCOUNTING RULE COMPANIES BY 1993 HAD TO BEGIN ACCOUNTING FOR FUTURE RETIREE MEDICAL COSTS OVER THE WORKING LIVES OF EMPLOYEES UNTIL THEIR RETIREMENT AT&T SAID THE BENEFITS ACCOUNTING CHANGE WILL HAVE A NEGLIGIBLE EFFECT ON EARNINGS THIS YEAR PREVIOUSLY IT HAD SAID THE ANNUAL INCREASE FOR THE NONCASH CHARGE COULD BE AS MUCH AS 100 MILLION AT&T ALSO SAID THE ACCOUNTING CHANGE WOULD HAVE NO EFFECT ON CURRENT OR FUTURE RETIREE HEALTH BENEFITS NOR WOULD IT AFFECT CASH FLOW EARNINGS GOALS OR ITS DIVIDENDS FOR 1992 THE TELECOMMUNICATIONS GIANT HAD EARNINGS OF 381 BILLION OR 286 A SHARE ON REVENUE OF 649 BILLION PARTIALLY OFFSETTING THE MEDICALCOST CHARGE WILL BE A 500 MILLION GAIN THIS YEAR FOR AN ACCOUNTING CHANGE ON DEFERRED INCOME TAXES AT&T NOTED THAT IN 1991 IT BEGAN A FUNDING PLAN FOR ITS 141000 RETIREES THROUGH SEPARATE TRUSTS FOR MANAGEMENT AND UNION RANKS AND CONTRIBUTIONS TO THAT PLAN NOW TOTAL 773 MILLION BEGINNING IN 1995 IT ALSO WILL LIMIT ITS CONTRIBUTIONS TO THE PLAN BY REQUIRING A RETIREE TO PAY PART OF THE PREMIUM FOR MEDICAL COVERAGE AT&T SAID THE MAXIMUM ANNUAL COST TO RETIREES WOULD RANGE FROM 850 TO 5650 DEPENDING ON THE RETIREE'S AGE AND MARITAL STATUS 9302170179 930217 PLAYBOY FOUNDER PLANS TO SELL 2 MILLION SHARES OF NONVOTING STOCK CHICAGO PLAYBOY ENTERPRISES INC SAID FOUNDER HUGH HEFNER WILL TRY FOR THE SECOND TIME TO SELL TWO MILLION OF HIS NONVOTING CLASS B COMMON SHARES THROUGH A PUBLIC OFFERING AN EARLIER ATTEMPT WAS SHELVED LAST SEPTEMBER THE ENTERTAINMENT AND PUBLISHING CONCERN AT THE TIME CITED THE STOCK MARKET'S FATIGUE WITH NEW ISSUES THE DECISION TO RELAUNCH THE OFFER COMES IN THE WAKE OF A 24 RISE IN THE PRICE OF PLAYBOY NONVOTING CLASS B STOCK SINCE THE BEGINNING OF THIS YEAR CHRISTIE HEFNER PLAYBOY CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER TOLD SHAREHOLDERS LATE LAST YEAR THAT THE OUTLOOK FOR ADVERTISING IN THE MAGAZINE IS IMPROVING A TRUST CONTROLLED BY MR HEFNER OWNS ABOUT 99 MILLION SHARES OR 721 OF THE 138 MILLION CLASS B SHARES CURRENTLY OUTSTANDING THE MOVE WON'T AFFECT MR HEFNER'S CONTROL OF PLAYBOY'S CLASS OF VOTING COMMON SHARES MR HEFNER'S TRUST OWNS ABOUT 70 OF THE 47 MILLION PLAYBOY CLASS A VOTING SHARES AS PART OF A REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT WILL SIMULTANEOUSLY OFFER ONE MILLION NONVOTING CLASS B SHARES TO THE PUBLIC PLAYBOY SAID IT WOULD USE PROCEEDS FROM THAT OFFERING TO REPAY SHORTTERM DEBT AS WELL AS INVEST IN PROGRAMMING AMONG OTHER THINGS IN TRADING AT THE NEW YORK STOCK EXCHANGE YESTERDAY PLAYBOY CLASS B SHARES WERE QUOTED AT 9125 UNCHANGED AT THAT PRICE THE SALE WOULD GENERATE ABOUT 183 MILLION IN PROCEEDS FOR MR HEFNER THE VOTING CLASS A COMMON SHARES WERE QUOTED AT 9 A SHARE DOWN 125 CENTS PLAYBOY CONVERTED ITS COMMON STOCK INTO NONVOTING AND VOTING SHARES IN 1990 SO THAT IT COULD ISSUE MORE SHARES WITHOUT DILUTING THE VOTING STAKE OF ITS FOUNDER THE DUALCLASS ARRANGEMENT ALSO ALLOWS MR HEFNER TO SELL PART OF HIS HOLDINGS WITHOUT SURRENDERING CONTROL OF PLAYBOY BEAR STEARNS & CO AND DANIELS & ASSOCIATES WILL MANAGE THE UNDERWRITING GROUP 9302170178 930217 US RAWSTEEL OUTPUT INCREASED 03 IN WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS INCREASED 03 LAST WEEK TO 1796000 TONS FROM 1791000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 28 FROM THE 1748000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 817 OF ITS CAPABILITY LAST WEEK COMPARED WITH 815 THE PREVIOUS WEEK AND 795 A YEAR AGO 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 9302170177 930217 WHO'S NEWS NEW YORK LIFE INSURANCE CO NEW YORK LIFE INSURANCE CO NEW YORK JOHN D FLEMING 49 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS INSURANCE COMPANY'S WORLDWIDE HOLDING INC UNIT WHICH OPERATES NEW YORK LIFE'S INSURANCE COMPANIES OUTSIDE THE US AND CANADA HE WAS PREVIOUSLY VICE PRESIDENT FOR INDIVIDUAL INSURANCE AT CONFEDERATION LIFE INSURANCE CO IN CANADA 9302170176 930217 LIMITED'S NET ROSE 22 IN FOURTH QUARTER LIZ CLAIBORNE'S FELL 8 A WALL STREET JOURNAL NEWS ROUNDUP LIMITED INC REPORTED A 22 RISE IN FISCAL FOURTHQUARTER NET INCOME WHILE LIZ CLAIBORNE INC'S EARNINGS FELL 8 ON WEAK CONSUMER SPENDING AND STARTUP COSTS FOR NEW BUSINESSES LIMITED A COLUMBUS OHIO RETAILER SAID EARNINGS FOR THE QUARTER ENDED JAN 30 ROSE TO A RECORD 2439 MILLION OR 67 CENTS A SHARE FROM EARNINGS OF 2003 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 18 TO 242 BILLION FOR THE YEAR LIMITED EARNED 4555 MILLION OR 125 A SHARE COMPARED WITH 4033 MILLION OR 111 A SHARE IN 1991 SALES ROSE 13 TO 694 BILLION EARNINGS FELL AT LIZ CLAIBORNE A NEW YORK APPAREL MAKER BECAUSE CUSTOMERS BOUGHT LESS IN THE RECESSION AND BECAUSE OF COSTS ASSOCIATED WITH STARTING UP NEW BUSINESSES THESE FACTORS ALSO ARE EXPECTED TO CAUSE A 30 DECLINE IN FISCAL FIRSTQUARTER PROFITS THE COMPANY SAID IN THE FOURTH QUARTER EARNINGS FELL TO 519 MILLION OR 63 CENTS A SHARE FROM 565 MILLION OR 66 CENTS A SHARE SALES ROSE TO 5464 MILLION FROM 5307 MILLION FOR THE YEAR EARNINGS FELL TO 2188 MILLION FROM 2227 MILLION PERSHARE EARNINGS WERE UNCHANGED AT 261 SALES GREW TO 219 BILLION FROM 201 BILLION IN 1991 FOR THE FIRST QUARTER ENDED MARCH 28 1992 THE COMPANY REPORTED NET OF 628 MILLION OR 74 CENTS A SHARE 9302170175 930217 ENTERPRISE CLINTON'S BREAK FOR SMALL BUSINESS GENERATES SKEPTICISM PROPOSED TAX CUT IN CAPITAL GAINS IS NOT EXPECTED TO FLY WITH ANGELS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL TONIGHT PRESIDENT CLINTON IS EXPECTED TO PROPOSE IN HIS ADDRESS TO THE NATION A BREAK FOR SMALL COMPANIES A CUT IN CAPITALGAINS TAXES FOR THEIR NEW INVESTORS YET MANY IN THE SMALLBUSINESS COMMUNITY PREDICT FEW BENEFITS FRANKLY WITH THE WAY INTEREST RATES ARE TODAY PEOPLE ARE GOING TO BE BUYING STOCK ANYWAY REGARDLESS OF ANY CAPITAL GAINS TAX CUTS SAYS REG JONES CHIEF FINANCIAL OFFICER OF HYCOR BIOMEDICAL INC A GARDEN GROVE CALIF MAKER OF MEDICAL DIAGNOSTIC CHEMICALS INDEED SOME SAY IT'S THE ECONOMY'S OVERALL HEALTH THAT PROPELS VENTURE INVESTMENTS NOT CAPITALGAINS TAX CUTS IF THE ECONOMY ISN'T FIXED CAPITAL GAINS TAX CUTS AREN'T GOING TO MAKE A DIFFERENCE FOR SMALL BUSINESSES BECAUSE THE ENVIRONMENT FOR DOING BUSINESS NEEDS TO BE STRONGER SAYS CLAIRE LEONARDI A MANAGING DIRECTOR OF BIGLER INVESTMENT MANAGEMENT CO A FARMINGTON CONN FIRM THAT INVESTS IN VENTURE CAPITAL PARTNERSHIPS MR CLINTON'S PROPOSAL BASED ON LEGISLATION COSPONSORED BY SEN DALE BUMPERS D ARK THAT WAS INTRODUCED YESTERDAY PROBABLY WILL INCLUDE BOTH A VENTURE CAPITAL TIER AND ONE FOR SEED CAPITAL THE VENTURE TIER WOULD PERMIT A 50 CUT IN THE CAPITALGAINS RATE ON NEW INVESTMENTS HELD FOR AT LEAST FIVE YEARS IN COMPANIES THAT HAVE RAISED 100 MILLION OR LESS IN THE DEBT AND EQUITY MARKETS THE SEED TIER FOR INVESTORS IN COMPANIES THAT HAVE RAISED 5 MILLION OR LESS WOULD ALLOW AN ADDITIONAL 10 DEDUCTION FROM CAPITAL GAINS TAXES FOR EACH YEAR AFTER THE FIFTH INVESTORS' TAX BITES ULTIMATELY COULD REACH ZERO IF THEY HELD THEIR INVESTMENTS FOR 10 YEARS EVEN STRONG BACKERS OF MR CLINTON'S PROPOSAL AGREE THAT THE TAX CUT ALONE WON'T WORK MAGIC FOR SMALL BUSINESSES IT IS NOT A PANACEA SAYS ED HATCHER DIRECTOR OF CONGRESSIONAL RELATIONS FOR THE AMERICAN ELECTRONICS ASSOCIATION THERE IS STILL A MAJOR PROBLEM AS FAR AS THE CREDIT CRUNCH IS CONCERNED AND NO ONE SAYS THIS IS GOING TO CURE THE PROBLEMS OF SMALL BUSINESS TO BE SURE SOME SMALLBUSINESS LEADERS AGREE THAT A CAPITAL GAINS TAX CUT MIGHT HELP IT IS A GOOD IDEA FOR GETTING MONEY INTO RISKY BUSINESSES SAYS JACK RENNIE CHAIRMAN OF PACER SYSTEMS INC A BILLERICA MASS MAKER OF AEROSPACE EQUIPMENT WITH ABOUT 30 MILLION IN ANNUAL REVENUE AND FOR PEOPLE WHO INVEST IN SMALLER COMPANIES IT'S A VERY USEFUL AND IMPORTANT WAY OF MAKING US ATTRACTIVE TO THEM YET EVEN SOME SMALLBUSINESS OWNERS WHO LIKE THE IDEA IN PRINCIPLE DON'T EXPECT LOWERED CAPITAL GAINS TAXES TO BRING THEIR OWN OPERATIONS MORE INVESTMENT DOLLARS THERE'S LITTLE OR NO CREDIT GOING TO SMALL BUSINESSES TODAY SO EVERYTHING HELPS SAYS SIDNEY SMALL OWNER OF SIDMAR ENTERPRISES INC A HOLBROOK MASS MANUFACTURER OF SOAPS AND DETERGENTS WITH 3 MILLION IN ANNUAL REVENUE BUT I DON'T THINK I HAVE THE KIND OF COMPANY THAT LOOKS FOR OUTSIDE INVESTORS HYCOR'S MR JONES WHOSE COMPANY HAS ABOUT 27 MILLION IN ANNUAL REVENUE SEES SUCH TAX CUTS AS MORE MEANINGFUL FOR NEW VENTURES BUT OTHERS SAY THAT EVEN STARTUPS WOULDN'T GET MUCH OF A BOOST FROM A CAPITALGAINS TAX CUT EASING FEDERAL REGULATIONS AND LOOSENING BANK CREDIT WOULD BE MORE VALUABLE FOR NEW BUSINESSES ARGUES WILLIAM SAHLMAN PROFESSOR OF ENTREPRENEURIAL FINANCE AT THE HARVARD BUSINESS SCHOOL PROPONENTS OF THE CLINTON PLAN SAY THAT PREVIOUS CAPITALGAINS TAX CUTS HAVE BEEN A BOON TO SMALL BUSINESS WHILE PREVIOUS INCREASES HAVE STALLED GROWTH ACCORDING TO THE NATIONAL VENTURE CAPITAL ASSOCIATION A CUT OF ALMOST 50 IN THE 1979 RATE PROMPTED A BOOM IN VENTURE CAPITAL INVESTMENTS THAT PEAKED IN 1987 THE ASSOCIATION ALSO SAYS THAT A 1986 INCREASE IN THE CAPITALGAINS TAX RATE LED TO A DECLINE IN VENTURE INVESTMENTS THAT HASN'T YET BOTTOMED OUT HOWEVER THE PICTURE IS MORE COMPLICATED THAN THAT ASSOCIATION FIGURES SUGGEST THE 1979 CAPITALGAINS TAX CUT LED TO A MODEST PICKUP IN INVESTMENTS IN SMALLER ENTERPRISES THAT TREND DIDN'T REALLY ACCELERATE UNTIL A RECESSION ENDED IN 1983 THOUGH THE CAPITALGAINS TAX RATE DIDN'T CHANGE BETWEEN 1983 AND 1985 VENTURE INVESTMENTS PLUMMETED AND INVESTMENTS ACTUALLY ROSE BETWEEN 1986 AND 1987 EVEN AFTER THE TAX RATE WENT UP THE POST1987 DECLINE MAY BE ATTRIBUTED TO THE STOCK MARKET CRASH THAT YEAR AND THE ONSET OF THE RECESSION SOME CRITICS FEAR THAT EXPECTED INCREASES IN PERSONAL AND CORPORATE TAX RATES WOULD OFFSET ANY CUTS IN CAPITALGAINS TAXES MOREOVER PENSION FUNDS WHICH CONTROL ABOUT 50 OF THE NATION'S VENTURE CAPITAL POOL AREN'T TAXED ON CAPITAL GAINS THUS A GAINS CUT ISN'T AS MEANINGFUL TO THEM AS IT IS FOR INDIVIDUAL INVESTORS A CAPITALGAINS TAX CUT FOR SMALL BUSINESSES REALLY AIMS TO ATTRACT WEALTHY INVESTORS KNOWN AS ANGELS HOWEVER ANGELS ARE VERY CHOOSY BECAUSE ONLY 10 TO 15 OF THEIR INVESTMENTS SUCCEED ANGELS GET INVOLVED IN VENTURES BECAUSE THEY KNOW THE GUY OR LIKE THE IDEA SO I DON'T THINK A CAPITAL GAINS TAX CUT IS GOING TO IMPROVE THE INVESTMENT FLOW TO SMALL COMPANIES PROF SAHLMAN CONTENDS SUCH SELECTIVITY MAKES IT ESPECIALLY DIFFICULT FOR MINORITY ENTERPRISES TO RAISE MONEY THROUGH ANGELS I DO NOT THINK THIS TAX CUT IDEA IS THE MOST EFFECTIVE WAY TO CHANNEL CAPITAL TO SMALL COMPANIES SAYS JOANN PRICE PRESIDENT OF THE NATIONAL ASSOCIATION OF INVESTMENT COMPANIES WHICH REPRESENTS INVESTORS IN MINORITY BUSINESSES EVEN IF A CAPITALGAINS TAX BREAK LOOKS ATTRACTIVE ANGELS COULD BE SCARED OFF BY AN INCREASE IN THE ALTERNATIVE MINIMUM TAX AN INDIVIDUAL'S LOWEST INCOME TAX RATE ACCORDING TO A CONGRESSIONAL AIDE PRESIDENT CLINTON MAY SEEK TO RAISE THE MINIMUM TAX CURRENTLY SET AT 24 TO 28 FURTHERMORE EVEN THOUGH THIS MINIMUM TAX WOULDN'T APPLY TO SEEDCAPITAL INVESTMENTS UNDER THE BUMPERS PLAN IT WOULD APPLY TO VENTURECAPITAL OUTLAYS SOME OBSERVERS VIEW THIS AS A PROBLEM A CAPITALGAINS TAX CUT HAS TO BE STRUCTURED TO BE MEANINGFUL SAYS PATRICIA CLOHERTY GENERAL PARTNER IN THE NEW YORK FIRM PATRICOF & CO VENTURES 9302170174 930217 WHO'S NEWS COMPENSATION TIES BRONFMAN EXECUTIVES TO SINKING STOCKS MANY TORONTO GROUP OFFICIALS NOW HOLD LOANS EXCEEDING VALUE OF SHARES PURCHASED BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THANKS TO AN UNUSUAL COMPENSATION PLAN DIRECTORS AND EXECUTIVES OF THE GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ARE SUFFERING ALONGSIDE THE GROUP'S SHAREHOLDERS SALARIES AT THE EDPER COMPANIES SO NAMED AFTER THE FOUNDING BROTHERS HAVE ALWAYS BEEN SMALL IN COMPARISON WITH OTHER BIG CONCERNS FEW KEY OFFICIALS EARN MORE THAN 150000 CANADIAN DOLLARS US119550 ANNUALLY INSTEAD THE BRONFMAN EMPIRE OFFERED ITS EXECUTIVES LARGE CHEAP LOANS TO BUY STOCK IN THE COMPANIES RISING SHARE PRICES TURNED SOME OF THESE EXECUTIVES INTO MULTIMILLIONAIRES IN THE 1980S FALLING PRICES IN 1990S ARE LEAVING OTHERS WORSE OFF THAN IF THEY HAD JUST DRAWN A SALARY THIS IS A GREAT WAY TO ENSURE EXECUTIVES RETAIN AN ONGOING FINANCIAL INTEREST IN THEIR COMPANIES BUT IN THIS CASE IT GOT A LITTLE OVERDONE SAID KEN HUGESSEN MANAGING DIRECTOR IN CHARGE OF EXECUTIVE COMPENSATION AT WILLIAM M MERCER LTD IN TORONTO MR HUGESSEN NOTES THAT THE LOANS EXTENDED TO BRONFMAN GROUP OFFICIALS TEND TO BE LARGE IN RELATION TO THEIR SALARIES AND ASSETS PARTICULARLY FOR THE MORE JUNIOR EXECUTIVES THESE ARE MOSTLY WORKING STIFFS WITHOUT PERSONAL FORTUNES TO FALL BACK ON WHO FIND THEMSELVES WITH NEARLY ALL OF THEIR INVESTMENTS IN ONE PLACE AND HIGHLY LEVERAGED HE NOTES AT HEES INTERNATIONAL BANCORP INC FOR EXAMPLE AT DEC 31 1991 THE LAST DATE FOR WHICH COMPLETE FIGURES ARE AVAILABLE ABOUT C178 MILLION IN LOANS WERE OUTSTANDING UNDER THE SHARE PURCHASE PROGRAM INDIVIDUAL LOANS FOR THE 14 EXECUTIVES IN THE PLAN RAN AS HIGH AS C17 MILLION SINCE THEN THE VALUE OF HEES'S STOCK HAS FALLEN BY 51 TO ABOUT C7 A SHARE AS A RESULT SOME OF THE COMPANY'S OFFICERS ACKNOWLEDGE THAT THEIR LOANS ARE AT LEAST SLIGHTLY UNDER WATER WITH THE VALUE OF THEIR LOANS EXCEEDING THE VALUE OF THE SHARES GENERALLY THE TYPE OF PEOPLE RECRUITED TO JOIN HEES ARE THE KIND WHO ARE AWARE OF THE VAGARIES OF THE STOCK MARKET AND CONSCIOUS OF THE LONGTERM VALUES THAT EXIST SAYS WILLARD L'HEUREUX PRESIDENT OF HEES IF THE PLAN HAS BEEN OVERDONE IT'S ONLY IN THE CONTEXT OF THIS NOT BEING A NORMAL BUSINESS CYCLE ACCORDING TO MANAGEMENT PROXY CIRCULARS MR L'HEUREUX OWNED 467681 HEES SHARES AT DEC 31 1991 AND OWED THE COMPANY C1753665 WITH RESPECT TO THE PURCHASE OF SHARES THE PROXY DIDN'T DISCLOSE HOW MANY SHARES HAD BEEN PAID FOR OTHER GROUP EXECUTIVES ARE AFFECTED BY THE DROP IN SHARE PRICES OF A NUMBER OF DIFFERENT COMPANIES ALL HIT BY THE RECESSION LOAN LOSS PROBLEMS AND A GENERAL CRISIS IN CONFIDENCE IN THE GROUP ITSELF EVEN THE BRONFMAN BROTHERS THEMSELVES WHO TEND TO TAKE A BACK SEAT IN THE MANAGEMENT OF THE EMPIRE THEY FOUNDED HAVE SEEN DENTS MADE IN THEIR NET WORTH FOR EXAMPLE EDWARD BRONFMAN'S HOLDINGS IN THE GROUP CONCENTRATED IN HIS 193 STAKE IN A TOP LEVEL HOLDING COMPANY WERE VALUED AT ABOUT C758 MILLION IN DECEMBER 1991 THAT MARKET VALUE HAS SLIPPED TO ABOUT C323 MILLION WITH FEW SIGNS OF AN UPTURN IN THE SHARE PRICES OF HEES AND OTHER GROUP COMPANIES SUCH AS BRASCAN LTD ROYAL TRUSTCO LTD AND TRILON FINANCIAL CORP GROUP MANAGERS ARE STARTING TO REDESIGN THE COMPENSATION PACKAGES PAID TO EXECUTIVES AT NORANDA 49 CONTROLLED BY THE BRONFMANS TERMS ON SOME LOANS ARE BEING EXTENDED TO 10 YEARS FROM FIVE TO ALLOW THE EXECUTIVES TO REALIZE THE VALUE SAYS COURTNEY PRATT NORANDA SENIOR VICE PRESIDENT NO EMPLOYEE WILL BE FORCED TO REPAY LOANS IF THE STOCK IS TRADING SUBSTANTIALLY BELOW THE PRICE AT WHICH THE LOAN WAS MADE MANAGERS ARE ALSO GETTING STOCK OPTIONS AS AN ADDITIONAL COMPONENT OF THEIR COMPENSATION MR PRATT SAYS MR L'HEUREUX SAID HEES PLANS TO PAY JUNIOR EXECUTIVES MORE CASH FORMERLY THE VALUE OF THE SHARES SOLD TO THEM REPRESENTED AS MUCH AS 60 OF THEIR TOTAL COMPENSATION THE YOUNGER PEOPLE HAVEN'T HAD A CHANCE TO BENEFIT FROM EARLIER STOCK PLANS HE NOTES IN CONTRAST EXECUTIVES WHO BOUGHT SHARES UNDER EARLIER PLANS BENEFITED FROM A 15YEAR PERIOD WHEN HEES STOCK ROSE STEADILY TO ITS HIGH OF MORE THAN C30 SHARE PURCHASE LOANS WILL NOT HOWEVER DISAPPEAR HE ADDS AS THEY ENCOURAGE A COMMONALITY OF INTEREST WITH OTHER SHAREHOLDERS PETER AND EDWARD BRONFMAN ARE COUSINS OF MONTREAL'S BRONFMAN DISTILLING DYNASTY WHO CONTROL SEAGRAM CO THE TWO FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON 9302170173 930217 MARKETING & MEDIA THOMSON CORP PLANS 170 MILLION CHARGE FOR THE FOURTH PERIOD TORONTO THOMSON CORP SAID IT EXPECTS TO RECORD A CHARGE OF US170 MILLION AGAINST FOURTHQUARTER EARNINGS AS PART OF THE RESTRUCTURING OF ITS NEWSPAPER BUSINESSES IN THE UK AND NORTH AMERICA THE COMPANY SAID THE CHARGE RELATES TO THE CARRYING VALUE OF ITS NEWSPAPER ASSETS WHICH THOMSON SAID HAVE BEEN HURT BY LOWERTHANEXPECTED GROWTH AND BY THE EFFECT OF THE RECESSION ON THE NEWSPAPER BUSINESS THOMSON SAID THAT FOLLOWING A REVIEW OF ITS ASSETS A NUMBER OF NEWSPAPERS IN BOTH NORTH AMERICA AND BRITAIN WILL BE EITHER SOLD OR CLOSED SOME OF OUR NORTH AMERICAN PAPERS HAVE NOT MET THE PROFIT GOALS WE SET FOR THEM SAID NIGEL HARRISON CHIEF FINANCIAL OFFICER IN SOME OF THOSE MARKETS WE'VE OWNED PAPERS FOR A NUMBER OF YEARS AND THEY CAN NO LONGER MEET OUR GROWTH OBJECTIVES ANALYSTS BELIEVE THAT THOMSON WHICH OWNS MOSTLY DAILY NEWSPAPERS IN SMALL ONEPAPER COMMUNITIES INTENDS TO CLOSE PAPERS WITHIN EASY RANGE OF URBAN CENTERS FOR EXAMPLE IT HAS BEEN RUMORED FOR SEVERAL MONTHS THAT THE OSHAWA TIMES PUBLISHED IN A SMALL CITY NEAR TORONTO ONTARIO WOULD BE CLOSED OR SOLD IN RESPONSE TO GROWING COMPETITION FROM FREE PAPERS LOCALLY AND FROM TORONTO PUBLICATIONS IN RECENT MONTHS A HANDFUL OF SMALL PAPERS IN THE US AND CANADA HAVE BEEN SOLD MR HARRISON WOULDN'T COMMENT ON THE OSHAWA PAPER'S FUTURE OR TO SAY HOW MANY OR WHICH PAPERS WOULD BE UP FOR SALE OR CLOSURE HE SAID THE COMPANY DOESN'T EXPECT FURTHER CHARGES AS THE RESTRUCTURING PROCEEDS IN BRITAIN MR HARRISON SAID THE THOMSON REGIONAL NEWSPAPERS DIVISION HAS BEEN HIT BY THE RECESSION TO A FAR GREATER EXTENT THAN ITS NORTH AMERICAN OPERATIONS FOR EXAMPLE THE GROUP HAS SEEN A 30 DECLINE IN UK EMPLOYMENT ADVERTISING THOMSON'S 1992 RESULTS ARE EXPECTED TO BE DISCLOSED MARCH 17 IN 1991 THE COMPNAY HAD NET INCOME OF 320 MILLION CANADIAN DOLLARS US2548 MILLION OR 53 CENTS A SHARE THOMSON IS 70 CONTROLLED BY THE THOMSON FAMILY THE COMPANY HAS INTERESTS IN SPECIALIZED INFORMATION NEWSPAPER PUBLICATION AND LEISURE TRAVEL IN NORTH AMERICA AND BRITAIN 9302170172 930217 RAYTHEON WINS JOB FROM SAUDI ARABIA TOTALING 580 MILLION LEXINGTON MASS RAYTHEON CO SAID THAT IT WAS AWARDED A 580 MILLION CONTRACT FROM SAUDI ARABIA FOR TRAINING AND TECHNICAL AND LOGISTICS SUPPORT FOR PATRIOT AND HAWK AIRDEFENSE MISSILE SYSTEMS THE MAKER OF MISSILES AIRCRAFT AND APPLIANCES SAID THAT THE CONTRACT WILL PROVIDE TRAINING TECHNICAL ASSISTANCE AT PATRIOT AND HAWK SITES THROUGHOUT SAUDI ARABIA AND LOGISTICS SUPPORT FOR SPARES AND MODIFICATIONS RUNNING THROUGH FEBRUARY 1995 THE CONTRACT IS IN ADDITION TO TWO CONTRACTS TOTALING MORE THAN 15 BILLION AWARDED TO RAYTHEON BY THE US ARMY MISSILE COMMAND UNDER THE FOREIGN MILITARY SALES PROGRAM THE MOST RECENT AWARDED LAST DECEMBER CALLS FOR THE DELIVERY OF 13 PATRIOT FIRE UNITS AND 761 MISSILES TO THE ROYAL SAUDI AIR DEFENSE FORCES TWO YEARS AGO SAUDI ARABIA ACQUIRED EIGHT PATRIOT FIRE UNITS AND 300 MISSILES THE KINGDOM HAS DEPLOYED HAWK AIRDEFENSE SYSTEMS SINCE 1967 IN A STATEMENT RAYTHEON SAID THAT FURTHER HAWK UPGRADES ARE PLANNED 9302170171 930217 WHO'S NEWS KIRSCHNER MEDICAL CORP KIRSCHNER MEDICAL CORP TIMONIUM MD ROGER VAN BROECK WAS NAMED VICE PRESIDENT FOR THE ORTHOPEDIC DIVISION OF THE MEDICAL EQUIPMENT MAKER FOLLOWING A REORGANIZATION MR VAN BROECK 44 YEARS OLD HAD BEEN VICE PRESIDENT OF INTERNATIONAL SALES AND MARKETING IN ADDITION LEWIS PARKER 51 THE COMPANY'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL ASSUME THE ADDITIONAL POST OF VICE PRESIDENT FOR OPERATIONS 9302170170 930217 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK KENNETH COYTE 61 YEARS OLD WAS NAMED CHAIRMAN AND RETAINS HIS CHIEF EXECUTIVE OFFICER POSITION AT WORLDWIDE TELEVISION NEWS A BROADCAST SERVICES COMPANY THAT IS 80OWNED BY CAPITAL CITIES/ABC AS CHAIRMAN HE SUCCEEDS RICHARD WALD WHO MOVED UP TO THE PARENT AS SENIOR VICE PRESIDENT AT ABC NEWS ROBERT BURKE 42 BECOMES WORLDWIDE TELEVISION'S PRESIDENT AND CHIEF OPERATING OFFICER THAT POSITION IS NEWLY CREATED 9302170169 930217 MITSUBISHI MARUBENI SENIOR DEBT RATINGS LOWERED BY MOODY'S TOKYO MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE SENIOR DEBT RATINGS OF JAPANESE TRADING COMPANIES MITSUBISHI CORP AND MARUBENI CORP CITING GROWING RISKS LINKED TO THEIR LATE 1980S DIVERSIFICATION MOODY'S DOWNGRADED TOKYOBASED MITSUBISHI'S SENIOR DEBT RATING TO SINGLEA1 FROM DOUBLEA3 AFFECTING ABOUT 24 BILLION IN LONGTERM DEBT THE RATINGS SERVICE LOWERED THE SENIOR DEBT RATINGS OF OSAKABASED MARUBENI AND ITS GUARANTEED SUBSIDIARIES TO SINGLEA3 FROM SINGLEA2 AND COMMERCIAL PAPER RATINGS TO PRIME2 FROM PRIME1 ABOUT 18 BILLION OF LONGTERM DEBT IS AFFECTED DUE TO DOWNTURNS IN THEIR CORE TRADING BUSINESSES THE TWO COMPANIES HAD BRANCHED OUT INTO NICHE MARKETS SUCH AS CABLE TELEVISION AND THE JAPANESE CONSUMER MARKET THEY ALSO MADE DIRECT INVESTMENTS IN AND ALLIANCES WITH DOMESTIC AND FOREIGN MANUFACTURERS AND LARGESCALE DEVELOPMENT PROJECTS MOODY'S SAID THE DOWNGRADES REFLECTED THE FACT THAT THE DIVERSIFICATION MAY TAKE LONGER THAN EXPECTED TO GENERATE INCOME FOR THE COMPANIES GIVEN THE GLOBAL ECONOMIC SLOWDOWN MARUBENI AND MITSUBISHI OFFICIALS COULDN'T BE REACHED FOR COMMENT 9302170168 930217 WHO'S NEWS AKORN INC AKORN INC ABITA SPRINGS LA JOHN H WILLIFORD WAS NAMED CHAIRMAN SUCCEEDING JOHN KAPOOR WHO RESIGNED BECAUSE OF OTHER BUSINESS COMMITMENTS DR KAPOOR 49 YEARS OLD WILL REMAIN A MEMBER OF THE BOARD MR WILLIFORD 66 IS CURRENTLY CHAIRMAN OF ADVANCED POLYMER SYSTEMS INC OF REDWOOD CITY CALIF THE OPHTHALMIC PRODUCTS CONCERN ALSO NAMED THREE NEW VICE PRESIDENTS ERIC WINGERTER 30 THE CURRENT CHIEF FINANCIAL OFFICER WAS NAMED VICE PRESIDENT FINANCE HAROLD KOCH 44 CURRENTLY DIRECTOR OF PRODUCT DEVELOPMENT IS NOW VICE PRESIDENT BUSINESS DEVELOPMENT TIM TONEY 51 CURRENT PRESIDENT OF TAYLOR PHARMACAL CO A UNIT OF AKORN WAS NAMED TO THE ADDITIONAL POSITION OF VICE PRESIDENT MANUFACTURING OPERATIONS OF AKORN 9302170167 930217 MAKE MARKET FEAR 1990 REPEAT BY STEPHEN ROBERT THE MARKET'S LONG SLIDE YESTERDAY WAS IN EFFECT A CLEAR MESSAGE FOR THE PRESIDENT HIGHER TAXES ALONE WON'T WORK MONDAY NIGHT MR CLINTON FOCUSED ON DEFINING THE SACRIFICE HE ASKS OF THE NATION HE ASKED THAT 70 OF HIS NEW TAX HIKES BE BORNE BY AMERICANS EARNING MORE THAN 100000 THE PRESIDENT DID OF COURSE LIST A FEW BUDGETCUTTING MEASURES INCLUDING HIS 150 SPECIFIC CUTS IN SPENDING PROGRAMS BUT HIS FAILURE TO CONCENTRATE ON THE DEFICIT AND SPENDING CUTS CAUSED THE MARKET TO DOUBT THAT SERIOUS DEFICIT REDUCTION WILL RESULT FROM THIS SOCALLED EMERGENCY DEFICIT PLAN INSTEAD THE MARKET FEARS AND LEGITIMATELY A REPEAT OF 1990 THEN CONGRESS ENACTED 150 BILLION IN TAX INCREASES THE SECOND LARGEST TAX INCREASE IN HISTORY BUT NEVER CAME CLOSE TO DELIVERING THE 400 BILLION IN BUDGET CUTS THAT WERE PART OF THE DEAL THAT FAILURE WAS WHAT GAVE US THE RECORD BUDGET DEFICITS THAT PROMPTED THE NEW PRESIDENT'S CALL TO ARMS IN THE FIRST PLACE THE PRESIDENT LIKES TRIAL BALLOONS AND THE MARKET'S REACTION MAY PROMPT HIM TO SHIFT HIS PLAN IN TIME FOR TONIGHT'S ADDRESS TO CONGRESS IF HE IS AS SERIOUS ABOUT THE DEFICIT AS HE SAYS HE IS HE SHOULD SEIZE THE MOMENT AND FOCUS ON THE DEFICIT EXCLUSIVELY IN FACT NARROWING THE DEFICIT SIGNIFICANTLY CAN DO FAR MORE THAN ANY 30 BILLION JOBSCREATION PROGRAM LET'S WALK THROUGH THE ARGUMENT THE FIRST POINT AND ONE MISSING FROM THE PRESIDENT'S PRESENTATION THUS FAR IS THAT IN A CAPITALIST ECONOMY THE WAY WE CREATE JOBS IS THROUGH BUSINESS EXPANSION YES GOVERNMENTS CAN HIRE PEOPLE TOO AND THE MONEY SPENT ON INFRASTRUCTURE EDUCATION AND JOB TRAINING IS AN INVESTMENT IN THE FUTURE BUT WELFARE PROGRAMS AND SERVICING THE NATIONAL DEBT INTEREST PAYMENTS NOW RUN ABOUT 200 BILLION A YEAR DON'T CREATE JOBS DEPENDABLE LONGTERM ECONOMIC GROWTH STEMS FROM ADDING FACTORIES NOT BUREAUCRATS BUILDING THOSE FACTORIES TAKES CAPITAL AND CAPITAL COMES FROM A NATION'S SAVINGS SAVINGS EQUAL INVESTMENT THE COUNTRIES WITH THE HIGHEST SAVINGS RATES HAVE THE HIGHEST INVESTMENT RATES AND THE HIGHEST RATES OF JOB GROWTH SADLY THE SAVINGS RATE IN THIS COUNTRY HAS NEVER BEEN LOWER IT HAS DROPPED TO AN AVERAGE OF AROUND 3 OF GROSS DOMESTIC PRODUCT TODAY FROM AROUND 98 IN 1960 IN GERMANY AND JAPAN SAVINGS ACCOUNT FOR MORE THAN 10 OF ECONOMIC PRODUCTION IN THE SAME PERIOD THE FEDERAL DEFICIT ROSE TO 49 OF GDP LAST YEAR FROM 02 OF GDP IN 1965 IN OTHER WORDS TWOTHIRDS OF THE DROP IN THE SAVINGS RATE CAN BE ACCOUNTED FOR BY GOVERNMENT DEFICIT SPENDING INSTEAD OF HAVING SAVINGS AVAILABLE FOR INVESTMENT IN NEW TECHNOLOGIES NEW PLANTS AND EQUIPMENT AND NEW SERVICE BUSINESSES THE MONEY IS BEING BORROWED AND SPENT BY THE FEDERAL GOVERNMENT SOME WILL ASK IF THE DEFICIT IS SUCH A BIG PROBLEM WHY DID THE MARKETS DO WELL THIS WINTER THE MARKET HAS INDEED BEEN PERFORMING AT HISTORIC LEVELS THE VALUE OF THE STANDARD AND POOR'S INDEX WAS ON FRIDAY 36 TIMES THE VALUE OF ALL DIVIDENDS THE SHORT EXPLANATION IS THAT OUR DEFICIT IS HOLDING BACK ECONOMIC GROWTH SLOWER ECONOMIC GROWTH BRINGS LOWER INFLATION AND LOWER INTEREST RATES CONDITIONS THAT CAUSE THE CURRENT MIGRATION OUT OF LOWERYIELD CDS AND THE MONEY MARKET AND INTO THE EQUITIES MARKETS IF PRESIDENT CLINTON DOES MAKE DEFICIT REDUCTION HIS PRIORITY HE MUST MAKE SPENDING CUTS AND TAX INCREASES UNFORTUNATELY THEY ARE NEEDED TO TACKLE A DEFICIT OF THE MONSTROUS SIZE WE HAVE CREATED IT IS TRUE THAT A TAX INCREASE WOULD LEAVE THE PUBLIC WITH LESS DISCRETIONARY MONEY TO SPEND WHICH IN TURN MIGHT SLOW THE ECONOMY IN THE SHORT TERM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS SAID HOWEVER THAT IF A GENUINE EFFORT IS MADE TO REDUCE THE DEFICIT HE WOULD COUNTERACT ANY DEPRESSANT EFFECT BY A MORE ACCOMMODATING MONETARY POLICY IT CAN BE ARGUED THAT EVEN IN THE SHORT TERM THE ECONOMY WOULD NOT BE APPRECIABLY SLOWED ONE VITAL BENEFIT OF A DECLARATION OF WAR ON THE DEFICIT WOULD BE IMMEDIATE LONGTERM INTEREST RATES WOULD FINALLY COME DOWN A REDUCTION OF TENS OF BILLIONS OF DOLLARS IN THE GOVERNMENT'S DEMANDS ON THE CREDIT MARKETS WOULD ALONE EASE RATES AND A MAJOR THREAT OF INFLATION WOULD BE LIFTED THE BOND AND STOCK MARKETS WOULD RALLY SHARPLY BUT MORE IMPORTANT BANKS WOULD NO LONGER BE ABLE TO TAKE IN MONEY AT LOW INTEREST RATES AND INVEST IN GOVERNMENT BONDS AND THRIVE NICELY ON THE SPREAD THEY WOULD INSTEAD HAVE TO START LENDING TO BUSINESSES AGAIN AND WITH THE COST OF CAPITAL DOWN BUSINESS COULD AFFORD TO BORROW SMALL BUSINESSES WOULD BE THE PRIME BENEFICIARIES OF DEFICIT REDUCTION THE LARGEST CORPORATIONS CAN USUALLY FIND FINANCING WHETHER FROM BANKS OR THE SECURITIES MARKETS THE ENTREPRENEUR HAS HAD A HARD TIME OF IT AND IT IS THE THOUSANDS OF SMALL BUSINESSES THAT WE RELY ON FOR JOB CREATION ESPECIALLY WHEN GIANT CORPORATIONS ARE STILL TRIMMING THEIR PAYROLLS FOREIGN INTERESTS WOULD ALSO WIDEN INVESTMENT HERE WHEN GOVERNMENT COMPETES WITH THE PRIVATE SECTOR FOR CAPITAL BY PAYING INTEREST RATES THAT BUSINESSES CANNOT AFFORD AND THAT IS WHAT HAPPENS WHEN BANKS FIND IT MORE ATTRACTIVE TO BUY TREASURY BONDS THAN EXTEND LOANS EVERYONE LOSES FREE UP MONEY FOR THE PRIVATE SECTOR AND WE CAN HAVE OUR STIMULUS AND NEW JOBS WITHOUT PUMPING 30 BILLION BORROWED DOLLARS INTO THE ECONOMY SOME PEOPLE PUT THE DEBATE IN MORAL TERMS ARGUING THE DEFICIT IS BAD AND THAT THE GOVERNMENT IS ACTING LIKE THE PROFLIGATE WHO SQUANDERS HIS INHERITANCE AND LEAVES NOTHING FOR HIS PROGENY BUT DEBTS WE SHOULD RATHER LOOK AT THE MATTER PRAGMATICALLY WE SIMPLY CAN'T GENERATE THE INVESTMENTS WE NEED WITH DEFICITS RUNNING AT THIS HIGH A PERCENTAGE OF OUR ECONOMIC OUTPUT IN THIS SENSE THE ECONOMY IS NO DIFFERENT THAN A BUSINESS WHICH CAN'T GROW IF MONEY IS NOT PUT BACK INTO IT MR ROBERT IS CHAIRMAN AND CEO OF OPPENHEIMER & CO THE WALL STREET FIRM SEE RELATED STORY SHAM CUTS ON SPENDING WSJ FEB 17 1993 9302170166 930217 WHO'S NEWS REEBOK INTERNATIONAL LTD REEBOK INTERNATIONAL LTD STOUGHTON MASS ROBERT MEERS PRESIDENT OF US AND CANADIAN OPERATIONS FOR THE REEBOK BRANDS DIVISION WAS NAMED A DIRECTOR OF THIS SNEAKER MAKER HIS APPOINTMENT INCREASES THE BOARD'S SIZE TO 11 MEMBERS 9302170165 930217 BEYOND WASHINGTON MIDDLE AMERICA IN CLINTON'S FIRST YEAR POLITICS & POLICY IN ILLINOIS A SWING VOTING AREA IN SWING STATE AWAITS PROOF THAT CLINTON STANDS FOR CHANGE BY DENNIS FARNEY STAFF REPORTER OF THE WALL STREET JOURNAL VANDALIA ILL THE PINEPLANKED FLOORS OF THE OLD STATEHOUSE HERE CREAK WITH THE SOUND OF HISTORY ABRAHAM LINCOLN WALKED THESE FLOORS AND LAST JULY SO DID CANDIDATE BILL CLINTON WHO PROMISED A RALLY OF 10000 OUTSIDE TO BE YOUR INSTRUMENT TO CHANGE THIS COUNTRY FAYETTE COUNTY TOOK HIM AT HIS WORD VOTING FOR A DEMOCRATIC PRESIDENT FOR THE FIRST TIME SINCE 1976 TONIGHT PEOPLE HERE WILL BE WATCHING MR CLINTON'S ADDRESS TO CONGRESS FOR EVIDENCE THAT HE MEANT IT HE'S GOING TO HAVE TO MAKE PEOPLE MAD IF HE DOES HIS JOB SAYS CHARLES KIRKPATRICK A RETIRED AIR FORCE OFFICER A REPUBLICAN WHO VOTED FOR MR CLINTON HE ADDS I MAY BE ONE OF THEM THAT PRETTY WELL SUMS UP FAYETTE COUNTY'S EXPECTATIONS OF THE NEW PRESIDENT TO WHOM IT GAVE 48 OF ITS VOTE IT DOESN'T EXPECT MIRACLES BUT IT DOES EXPECT CHANGE BOLD CHANGE FOR A NATION IT SENSES IS DANGEROUSLY ADRIFT THE DOMINANT IMPRESSION GATHERED FROM A VISIT HERE IS THAT MR CLINTON HAS SOME MANEUVERING ROOM THAT PEOPLE HERE ARE READY FOR SACRIFICES IF THOSE SACRIFICES SEEM FAIR THAT HIS EARLY MISSTEPS HAVE BEEN DAMAGING BUT NOT DEVASTATING THAT HE IS STILL PERCEIVED HOWEVER FUZZILY AS A DIFFERENT DEMOCRAT SPECIFICALLY MIDDLECLASS VOTERS HERE WANT SHARP BUDGET CUTS AND MAJOR CUTBACKS IN THE FEDERAL BUREAUCRACY THEY WANT THE SWEEPING WELFARE AND HEALTH INSURANCE REFORMS THAT CANDIDATE CLINTON PROMISED THEY ARE EVEN WILLING TO GO ALONG WITH TAX INCREASES IF MR CLINTON CONVINCES THEM THAT THOSE INCREASES SPREAD THE PAIN TO EVERYONE GIVEN THE SWOLLEN FEDERAL DEFICIT MOST SEE A TIME OF SACRIFICE AS INEVITABLE I THINK WE'LL ALL BE AGRUBBIN' A BIT MORE SAYS 72YEAROLD MARVIN ALDERSON A SEMIRETIRED FARMER WHO VOTED FOR GEORGE BUSH I'VE LIVED THROUGH SOME GOOD TIMES MAYBE THE BEST TIMES THIS COUNTRY HAS EVER HAD BUT I FEEL THE FUTURE IS GOING TO PAY FOR THEM ANTIQUES DEALER BARBARA BIGELOW WHOSE SHOP OFFERS FOR 300 THE LITTLE OAK TABLE THAT HELD BILL CLINTON'S WATER GLASS DURING HIS SPEECH HERE IS INCLINED TO AGREE ASKED ABOUT MR CLINTON'S PLANS TO HIT MIDDLECLASS CITIZENS LIKE HER WITH NEW TAXES HER REPLY IS MATTEROFFACT I DON'T THINK HE'S GOT MUCH CHOICE MRS BIGELOW VOTED FOR MR CLINTON BUT SHE IS ANYTHING BUT A HARDCORE DEMOCRAT THE LAST TIME SHE VOTED FOR A PRESIDENT WAS IN 1968 WHEN SHE BACKED RICHARD NIXON IN THIS SENSE SHE IS A LOT LIKE VANDALIA ITSELF A SWING VOTING AREA IN A CLASSIC SWING STATE VANDALIA SITS ASTRIDE A GEOLOGIC AND SOCIAL DIVIDE A WOODED RIDGE AT THE EDGE OF TOWN THE SIGNATURE OF A LONGAGO GLACIER DELINEATES THE APPROXIMATE GATEWAY TO SOUTHERN ILLINOIS TO THE NORTH IS RICH BLACK SOIL WITH FLAT PRAIRIES POPULATED BY THE DESCENDANTS OF YANKEES TO THE SOUTH IS POORER DUNCOLORED SOIL WITH A ROLLING LANDSCAPE PEOPLED BY THE DESCENDANTS OF SOUTHERNERS FOR A BRIEF SHINING PERIOD VANDALIA WAS THE PLACE WHERE THESE TWO WORLDS CONVERGED IT WAS THE ILLINOIS CAPITAL FROM 1819 TO 1839 AN EARLY ACCOUNT DESCRIBES LEGISLATORS NAVIGATING HERE THROUGH THE NEIGHBORING PRAIRIES AS THE MARINER STEERS OVER THE TRACKLESS OCEAN GETTING LOST PLUNGING INTO CREEKS AND RIVERS THEN CAME STATE LEGISLATOR ABRAHAM LINCOLN 6FOOT4 AND A LEADER OF A SPRINGFIELDAREA DELEGATION SO TALL IT WAS COLLECTIVELY DUBBED THE LONG NINE THE LONG NINE CAST A LONG SHADOW OVER VANDALIA'S FUTURE THEY GOT THE CAPITAL MOVED TO SPRINGFIELD TODAY THIS QUIET LITTLE TOWN IS MORE ACCUSTOMED TO REFLECTING UPON HISTORY THAN MAKING IT YET PRESIDENT CLINTON CAN'T SUCCEED IN WASHINGTON UNLESS HE SUCCEEDS IN THIS OTHER AMERICA SO DIFFERENT SO FAR REMOVED FROM THE INSULAR WORLD BOUNDED BY THE WASHINGTON BELTWAY RIGHT NOW VANDALIA IS LOOKING AT PRESIDENT CLINTON THROUGH TWO DISTINCTLY DIFFERENT LENSES CULTURAL CONSERVATISM AND ECONOMIC POPULISM FOR NOW ITS CONSERVATISM SEEMS ECLIPSED BY ITS POPULISM THE CULTURALLY CONSERVATIVE SIDE OF VANDALIA HAS NOTED WITH DISTASTE PRESIDENT CLINTON'S PLAN TO LIFT THE BAN ON GAYS IN THE MILITARY US BOYS DOWN HERE DON'T GO ALONG WITH THAT SORT OF THING SAYS LYNDELL DUFF AT THE HIHAT A BAR FILLED WITH CIGARETTE SMOKE AND THE CLICK OF BILLIARD BALLS BUT MR DUFF WHO VOTED FOR GEORGE BUSH QUICKLY ADDS ACTUALLY I DON'T CARE WHAT HIS POLICIES ARE SO LONG AS HE DOES SOMETHING FOR THE WORKING PEOPLE I DON'T THINK YOU CAN CLASSIFY BILL CLINTON AS A TYPICAL DEMOCRAT SAYS CAROLYN STILT 48 AS SHE EMERGES FROM AN INCOME TAX APPOINTMENT AT THE LOCAL H&R BLOCK OFFICE HE'S NOT LIKE THE KENNEDY FAMILY SHE EXPLAINS HE'S VERY MUCH A MAN OF THE PEOPLE ALTHOUGH SHE DIDN'T VOTE FOR MR CLINTON SHE IS HOPEFUL THAT HIS ADMINISTRATION WILL USHER IN NATIONAL HEALTH INSURANCE THE RUB OF COURSE IS THAT HEALTH INSURANCE AND OTHER HELP FOR ORDINARY PEOPLE WILL COST MONEY AT THE VERY TIME MR CLINTON IS TRYING TO CUT THE DEFICIT IT MAY PROVE TRUE AS MANY IN OFFICIAL WASHINGTON WOULD ARGUE THAT SQUARING THIS CIRCLE WILL BE IMPOSSIBLE BUT VANDALIA DOESN'T SEE IT THAT WAY NOT THE LEAST BECAUSE VANDALIA DOESN'T TRUST OFFICAL WASHINGTON THE GOVERNMENT IS LIKE QUEEN ELIZABETH SITTING UP THERE SAYS MRS BIGELOW THE ANTIQUES DEALER AND CLINTON SUPPORTER IT'S A BLOATED FIGUREHEAD SHE SAYS LIVING IN A REGAL AND ISOLATED WORLD I THINK CONGRESS IS AGAINST HIM 100 SAYS WAYNE REXFORD 36 A CLINTON VOTER WHO RACES STOCK CARS IN HIS SPARE TIME IN A WHITE HOUSECONGRESS SHOWDOWN HE WOULD BACK THE PRESIDENT HE ACTUALLY TALKED TO PEOPLE OUT HERE HE TALKED TO THEM AND THERE AREN'T ANY BIGWIGS WHO HAVE DONE THAT FOR A LONG TIME THIS KIND OF SUPPORT COULD MELT AWAY UNDER THE COUNTERATTACK OF ORGANIZED INTEREST GROUPS THAT IS SURE TO GREET MR CLINTON'S PROPOSALS INEVITABLY THE NEW PRESIDENT ALREADY HAS SOME IMPLACABLE CRITICS HE'S FAKE SAYS MARION J SHROYER A REALTOR AND ANTIABORTION ACTIVIST A PERSON CAN'T SMILE CONSTANTLY AND NOT BE A FAKE SHE PREDICTS HE'LL TAKE THE COUNTRY RIGHT BACK TO WHERE WE WERE WHEN JIMMY CARTER WAS IN THERE EVEN AMONG THOSE WHO LIKE HIM HIS SUPPORT SEEMS MORE BROAD THAN DEEP HIS ELECTION VICTORY HERE AS MUCH A VOTE AGAINST GEORGE BUSH WHO GOT ONLY 35 OF THE VOTE ROSS PEROT GOT 17 AS A VOTE FOR BILL CLINTON AS COSMETOLOGIST DAVID HARRISON PUTS IT WE WEREN'T GETTING ANYWHERE WHAT A LOT OF PEOPLE WERE VOTING FOR WAS A CHANCE FOR HOPE THE PERCEPTION THAT MR CLINTON IS A DIFFERENT KIND OF DEMOCRAT IS HIS BIGGEST ASSET BUT PRESERVING THAT VIEW WILL FORCE HIM TO GAMBLE TERMS OF DOMESTIC POLICY HE WILL HAVE TO BREAK WITH TRADITIONAL LIBERALISM AND EXPERIMENT WITH NEW APPROACHES BOLD NEW POLICIES WON'T ENSURE THE SUCCESS OF HIS PRESIDENCY THEY MAY AFTER ALL COME A CROPPER BUT A LACK OF THEM SEEMS EVEN MORE CERTAIN TO ENSURE ITS FAILURE CLINTON SCARED ME WHEN HE FIRST CAME IN SAYS BONNIE TJADEN WHO OWNS CAIN'S DRUG STORE WITH HER PHARMACISTHUSBAND DARRYL I WAS AFRAID OF THE OLD TAXANDSPEND BUT I'M KIND OF EXCITED NOW HE DOES SEEM TO HAVE THE GUTS TO GO AHEAD OR DOES HE VANDALIA WILL BE TAKING HIS MEASURE TONIGHT 9302170164 930217 WHO'S NEWS GLOBAL MARINE INC GLOBAL MARINE INC HOUSTON JOHN G RYAN SENIOR VICE PRESIDENT OF THE OFFSHORE DRILLING CONCERN WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS CONTRACT DRILLING SUBSIDIARY THE 40YEAROLD MR RYAN SUCCEEDS C RUSSELL LUIGS WHO RETAINS HIS POSITIONS AS GLOBAL MARINE'S CHAIRMAN AND CHIEF EXECUTIVE 9302170163 930217 BUSINESS BRIEFS ARA SERVICES ACQUIRED LONDONBASED STUART CABELDU CATERING LTD A FOOD SERVICE COMPANY FOR UNDISCLOSED TERMS TELXON CORP REACHED AN AGREEMENT UNDER WHICH GENERAL ELECTRIC CO'S COMPUTER SERVICE UNIT WILL WORK WITH TELXON CUSTOMERS ITT DATACOM A BRITISH SUBSIDIARY OF ITT CORP SAID IT FORMED A NEW UNIT TO MARKET ITS COMPUTER NETWORKING PRODUCTS AND SERVICES IN NORTH AMERICA POPE & TALBOT INC WILL INVEST 34 MILLION IN CAPITAL IMPROVEMENTS TO ITS PULP MILL IN HALSEY ORE THE PROJECT IS SCHEDULED FOR COMPLETION AT YEAR END OHM CORP WAS AWARDED A 177 MILLION CONTRACT FROM THE US DEPARTMENT OF ENERGY TO REMOVE CHEMICALLY AND RADIOACTIVELY CONTAMINATED WASTE FROM A SITE IN ST CHARLES MO THE US PATENT OFFICE NOTIFIED LORAD CORP THAT PATENT CLAIMS RELATED TO ITS CHARGECOUPLED DEVICE CAMERA FOR USE IN MAMMOGRAPHY EQUIPMENT HAVE BEEN ALLOWED BAUSCH & LOMB INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE STERIOSS INC AN ANAHEIM CALIF DENTAL IMPLANT MAKER MEDLINE INDUSTRIES INC SIGNED A FIVEYEAR FEDERAL CONTRACT TO SUPPLY THE VETERANS ADMINISTRATION WITH MEDICAL AND SURGICAL PRODUCTS TERMS WEREN'T DISCLOSED 9302170162 930217 WHO'S NEWS ABITIBIPRICE INC ABITIBIPRICE INC TORONTO THE FORESTPRODUCTS COMPANY NAMED THREE NEW DIRECTORS STANLEY H HARTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CAMDEV CORP TORONTO H EARL JOUDRIE CHAIRMAN OF ALGOMA STEEL CORP SAULT STE MARIE ONTARIO AND ALLAN H MICHELL PRESIDENT OF AH MICHELL CONSULTANTS MONTREAL THE APPOINTMENTS FOLLOW THE RECENT RESIGNATIONS FROM ABITIBI'S BOARD BY THREE MEMBERS OF THE REICHMANN FAMILY AND ONE OTHER OFFICIAL OF THE INSOLVENT OLYMPIA & YORK DEVELOPMENTS LTD REAL ESTATE CONCERN O&Y OWNS 82 OF ABITIBIPRICE THE RESIGNATIONS WERE SUBMITTED IN CONJUNCTION WITH O&Y'S RESTRUCTURING PLAN ABITIBI'S BOARD NOW TOTALS 13 MEMBERS 9302170161 930217 WHO'S NEWS BETHLEHEM STEEL PICKS CIVILETTI CLARK KAMEN AS OUTSIDE DIRECTORS BETHLEHEM PA BETHLEHEM STEEL CORP NAMED THREE NEW OUTSIDE DIRECTORS ANOTHER INDICATION OF A QUICKENING PACE OF CHANGE AT THE OLDLINE STEELMAKER UNDER ITS NEW CHAIRMAN BETHLEHEM APPOINTED TO ITS BOARD BENJAMIN R CIVILETTI A BALTIMORE LAWYER AND A US ATTORNEY GENERAL UNDER PRESIDENT CARTER WORLEY H CLARK JR CHIEF EXECUTIVE OFFICER OF NALCO CHEMICAL CO IN NAPERVILLE ILL AND HARRY P KAMEN CHIEF EXECUTIVE OF METROPOLITAN LIFE INSURANCE CO IN NEW YORK THE APPOINTMENT OF MESSRS CIVILETTI 57 YEARS OLD CLARK 60 AND KAMEN 59 INCREASES THE SIZE OF BETHLEHEM'S BOARD TO 15 FROM 12 THE APPOINTMENTS COMING AT A TIME OF INCREASED ACTIVISM BY OUTSIDE DIRECTORS WERE THE FIRST UNDER CURTIS H BARNETTE WHO BECAME BETHLEHEM'S CHAIRMAN NOV 1 SINCE TAKING THE STEELMAKER'S HELM MR BARNETTE HAS SPLIT THE COMPANY'S OPERATIONS INTO STANDALONE BUSINESSES AND ANNOUNCED PLANS TO SALVAGE THE COMPANY'S RAIL AND STRUCTURALSTEEL UNITS ALL OF BETHLEHEM'S DIRECTORS FACE REELECTION EACH YEAR AND THE COMPANY HAS A RETIREMENT AGE OF 70 FOR OUTSIDE DIRECTORS MOST BETHLEHEM DIRECTORS WHOSE AGES RANGE FROM 54 TO 69 WERE NAMED UNDER MR BARNETTE'S PREDECESSOR WALTER F WILLIAMS ONLY THREE OF BETHLEHEM'S DIRECTORS ARE COMPANY OFFICERS MR BARNETTE SAID IN A STATEMENT THAT HE ANTICIPATES THE DIRECTORS' ACTIVE PARTICIPATION IN THE BUSINESS AND AFFAIRS OF BETHLEHEM STEEL 9302170160 930217 WHO'S NEWS HUFFY CORP HUFFY CORP DAYTON OHIO ROBERT R WIELAND 56 YEARS OLD WAS NAMED VICE PRESIDENT LAW AND CHIEF ADMINISTRATIVE OFFICER OF THIS MAKER OF SPORTS EQUIPMENT AND LAWN AND GARDEN PRODUCTS HE FORMERLY WAS VICE PRESIDENT GENERAL COUNSEL MR WIELAND RETAINS HIS POST AS SECRETARY NANCY A MICHAUD 46 FORMER SENIOR COUNSEL SUCCEEDS MR WIELAND AS GENERAL COUNSEL SHE ALSO WAS NAMED ASSISTANT SECRETARY 9302170159 930217 WHO'S NEWS THOMAS INDUSTRIES INC THOMAS INDUSTRIES INC LOUISVILLE KY RONALD D WISEMAN WAS NAMED TREASURER OF THIS LIGHTING PRODUCTS MAKER MR WISEMAN 38 YEARS OLD FORMERLY WAS MANAGER OF TAX AND INTERNAL AUDITING HE SUCCEEDS DAVID REINHARDT 39 WHO RESIGNED THE COMPANY ALSO NAMED CLIFFORD C MOULTON GROUP VICE PRESIDENT FOR COMPRESSOR AND VACUUM PUMPS MR MOULTON 44 PREVIOUSLY WAS VICE PRESIDENT AND GENERAL MANAGER OF THE SKINNER VALVE DIVISION AT HONEYWELL INC HIS POSITION IS NEWLY CREATED 9302170158 930217 EATERIES INC JANUARY SALES ROSE OKLAHOMA CITY EATERIES INC SAID SAMESTORE SALES AT ITS GARFIELD'S RESTAURANTS CHAIN ROSE 82 IN JANUARY FROM THE SAME PERIOD OF LAST YEAR TOTAL SALES FOR THE MONTH ROSE 62 TO 18 MILLION EATERIES OPERATES 32 RESTAURANTS IN 12 STATES 9302170157 930217 COLUMBIA HOSPITAL ACQUISITION FORT WORTH TEXAS COLUMBIA HOSPITAL CORP SAID IT ACQUIRED CEDARS MEDICAL CENTER A 585BED TEACHING HOSPITAL IN MIAMI OPERATION OF THE HOSPITAL WILL BE COMBINED WITH COLUMBIA'S VICTORIA HOSPITAL A NEARBY 300BED FACILITY 9302170156 930217 PEPPERAND SALT ONE PERSONAL ARTIFACT LINGERS YOU KNOW THE ONE FOR FINGERS FOR BETTER OR FOR WORSE OTHER DAYS YOU'RE IN REVERSE 9302170155 930217 INDUSTRY FOCUS BRITISH BIOTECH HOPES TO TAKE A PAGE OUT OF US STORY STARTUP DRUG GROUP SEEKS TO COPY AMERICANS' ENTREPRENEURIAL SUCCESS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL OXFORD ENGLAND IT SOUNDS LIKE THE CLASSIC AMERICAN ENTREPRENEURIAL TALE TEN HUNGRY SCIENTISTS DUMPED BY A BIG DRUG MAKER MORTGAGE THEIR HOMES AND PLOW THEIR LIFE SAVINGS INTO A STARTUP COMPANY BASED ON A RISKY IDEA THAT HARDLY ANYBODY ELSE BELIEVES IN THEY SCRAPE TOGETHER FUNDING RECRUIT SOME POWERFUL ALLIES AND PUT THEMSELVES INTO THE THICK OF THE RACE TO FIND A VACCINE AGAINST AIDS WHAT MAKES THIS SCENARIO UNUSUAL IS THAT IT IS NOT AN AMERICAN BUT A EUROPEAN STORY IT HAPPENED TO BRITISH BIOTECHNOLOGY GROUP PLC AND SOME IN EUROPE'S DRUG BUSINESS ARE HOPING BRITISH BIOTECH WILL INSPIRE OTHER RESTLESS SCIENTISTS TO STRIKE OUT ON THEIR OWN IN THE US THERE ARE WELL OVER 100 PUBLICLY TRADED BIOTECH COMPANIES SAYS JAMES NOBLE BRITISH BIOTECH'S FINANCE DIRECTOR WHO USED TO BE AN INVESTMENT BANKER IN THE UK THE COMPARABLE FIGURE IS FIVE AND THAT IS STILL ABOUT FOUR MORE THAN THE REST OF EUROPE THAT'S A PROBLEM FOR EUROPE'S PHARMACEUTICAL INDUSTRY BECAUSE IT IS SMALL ENTREPRENEURIAL VENTURES THAT HAVE BECOME THE MOST FERTILE BREEDING GROUNDS FOR INNOVATION SAYS SAM ISALY OF MEHTA & ISALY A NEW YORK PHARMACEUTICAL ANALYSIS FIRM PEOPLE REALIZE THAT CORPORATE BUREAUCRACIES AT THE MAJOR DRUG MAKERS ARE ABSOLUTELY STIFLING FOR SCIENTIFIC ADVANCE STARTING A TINY DRUG COMPANY IN EUROPE IS A HEADACHE COMPARED WITH THE US WHERE ACCESS TO VENTURE CAPITAL AND RESEARCH FACILITIES IS MUCH FREER CONSEQUENTLY TOP EUROPEAN SCIENTISTS TEND TO TAKE THEIR DISCOVERIES TO AMERICA MONOCLONAL ANTIBODIES FOR EXAMPLE WERE DISCOVERED IN CAMBRIDGE UNIVERSITY LABS BUT WERE COMMERCIALLY EXPLOITED FIRST IN THE US AFTER BRITISH AUTHORITIES FAILED TO PATENT AND DEVELOP THE BREAKTHROUGH THERE IS ENORMOUS SCIENTIFIC POTENTIAL IN EUROPE THAT SHOULD BE MORE FULLY EXPLOITED BY BOTH EUROPEAN COMPANIES AND AMERICAN COMPANIES THAT ARE ACTIVE HERE SAYS MAX LINK CHAIRMAN OF THE PHARMACEUTICAL DIVISION OF SANDOZ AG THE SWISS CONCERN BUT CREATION OF STARTUP COMPANIES IS STILL FRUSTRATED BY LEGISLATIVE OBSTACLES AND LACK OF ACCESS TO THE CAPITAL MARKETS FIGURING THAT EUROPE'S BIOTECH INDUSTRY LAGS A DECADE BEHIND THE US SANDOZ AND OTHER EUROPEAN DRUG MAKERS HAVE BEEN PROSPECTING IN AMERICA SANDOZ PAID 392 MILLION IN 1991 FOR 60 OF SYSTEMIX INC A FLEDGLING CALIFORNIA RESEARCH COMPANY AND SANDOZ IS IN A 10YEAR 300 MILLION RESEARCH COLLABORATION WITH SAN DIEGOBASED SCRIPPS RESEARCH INSTITUTE TWO YEARS AGO SWISS DRUG GIANT ROCHE HOLDING LTD PAID 21 BILLION FOR A 60 STAKE IN US BIOTECH FLAGSHIP GENENTECH INC THE SEARCH FOR INNOVATION HAS HELPED BRITISH BIOTECH TO BEAT THE ODDS AGAINST EUROPEAN STARTUPS AMONG ITS BACKERS ARE GLAXO HOLDINGS PLC AND SMITHKLINE BEECHAM PLC WHICH SIGNED ON TO HELP SPEED DEVELOPMENT OF TWO DRUGS THE LINK WITH BRITISH BIOTECH IS EXACTLY PROTOTYPIC OF WHAT WE HAVE IN MIND SAYS GEORGE POSTE THE RESEARCH DIRECTOR OF SMITHKLINE HE ACKNOWLEDGES THAT EVEN THE WORLD'S BIGGEST DRUG COMPANIES CAN NO LONGER AFFORD TO REMAIN SELFSUFFICIENT BRITISH BIOTECH AND ALMOST THE ENTIRE UK BIOTECH INDUSTRY GREW OUT OF A EUROPEAN RESEARCH CENTER SET UP IN THE 1960S BY GD SEARLE & CO THE US DRUG MAKER SEARLE WAS ACQUIRED BY MONSANTO CO IN 1985 AND THE FACILITY WAS DISMANTLED THE DAY WE LEARNED MONSANTO WAS CLOSING IT DOWN I SMILED AND TOLD ASSOCIATES THEY WERE DOING US A GREAT SERVICE RECALLS KEITH MCCULLAGH ONE OF THE FOUNDERS OF BRITISH BIOTECH WHO IS NOW ITS CHIEF EXECUTIVE MR MCCULLAGH HIS BOSS BRIAN RICHARDS AND EIGHT OTHER SCIENTISTS INVESTED THEIR SEVERANCE PAYMENTS FROM SEARLE IN THE NEW COMPANY ALONG WITH 25 MILLION 36 MILLION OF STARTUP CAPITAL FROM FOUR INITIAL BACKERS THE COMPANY SUBSEQUENTLY COMPLETED FOUR ROUNDS OF VENTURECAPITAL FINANCING RAISING 732 MILLION FROM 1986 TO 1991 BESIDES GLAXO AND SMITHKLINE FINANCIAL BACKERS INCLUDE JOHNSON & JOHNSON OF THE US JAPAN'S CHUGAI PHARMACEUTICAL CO AND MUTUAL FUNDS CONTROLLED BY GEORGE SOROS THE PROMINENT INTERNATIONAL INVESTOR A FURTHER 30 MILLION CAME VIA BRITISH BIOTECH'S INITIAL PUBLIC OFFERING LAST SUMMER THE ISSUE'S SIMULTANEOUS DEBUT ON LONDON'S STOCK EXCHANGE AND THE NASDAQ MARKET IN THE US GAVE THE ENTIRE COMPANY A VALUATION OF ROUGHLY 150 MILLION MR MCCULLAGH AND FELLOW EXECUTIVES PROBABLY WILL NEED EVERY PENNY THEY'VE RAISED TO SURVIVE THE PUNISHING 10 TO 12 YEARS REQUIRED TO GET AN INNOVATIVE NEW DRUG TO MARKET NO PRODUCT CURRENTLY UNDER DEVELOPMENT IS EXPECTED TO REACH MARKETS UNTIL THE LATE 1990S AT THE EARLIEST IN THE MEANTIME DEVELOPMENT COSTS WILL CONTINUE TO GOBBLE UP THE COMPANY'S CAPITAL IN THE SIX MONTHS ENDED OCT 31 BRITISH BIOTECH HAD A NET LOSS OF 47 MILLION WHICH IT DESCRIBED AS WELL WITHIN BUDGETED LEVELS THE LOSSES ARE EXPECTED TO WIDEN IN THE FISCAL SECOND HALF AS CLINICAL TRIALS INTENSIFY AND LEAD PRODUCTS PROGRESS TO HUMAN TESTING THAT'S A CRUCIAL MILESTONE MISMANAGEMENT OF EXPENSIVE CLINICAL TRIALS OR BOTCHED DEALINGS WITH REGULATORY AGENCIES HAVE FORCED DOZENS OF FLEDGLING DRUG AND BIOTECH FIRMS TO SURRENDER THEIR INDEPENDENCE OR CLOSE DOWN ENTIRELY TO HELP ITS PRODUCTS THROUGH THE REGULATORY LABYRINTH BRITISH BIOTECH CAN TAP THE EXPERIENCE OF ITS DEVELOPMENT PARTNERS GLAXO AND SMITHKLINE BRITISH BIOTECH'S MOST ADVANCED PRODUCT IS AN AIDS VACCINE DESIGNED TO BOLSTER THE IMMUNE SYSTEM AND SLOW DETERIORATION IN THE HEALTH OF PATIENTS INFECTED WITH HIV THE VACCINE IS BASED ON THE APPARENT CAPACITY OF ANTIBODIES TO A PROTEIN CALLED P24 WHICH IS CONTAINED IN THE CORE OF THE AIDS VIRUS TO DELAY THE ONSET OF AIDS AS LONG AS SEVERAL YEARS IN INFECTED PATIENTS UNLIKE CONVENTIONAL VACCINES IN WHICH DEAD OR WEAKENED VIRUSES ARE INJECTED INTO PATIENTS BRITISH BIOTECHNOLOGY EMPLOYS A NOVEL TECHNOLOGY TO PRODUCE VIRUSLIKE PARTICLES THAT ARE ROUGHLY THE SAME SIZE AS THE REAL VIRUS AND COATED WITH SYNTHETIC COPIES OF P24 IN THEORY THE VACCINE WORKS BY SPURRING THE BODY TO PRODUCE ANTIBODIES THAT WILL ATTACK THE P24 PROTEIN THE IDEA IS THAT THESE WILL HELP THE IMMUNE SYSTEM AT LEAST TO SLOW THE AIDS VIRUS INITIAL CLINICAL TRIALS ON HEALTHY VOLUNTEERS PROVED THAT THE VACCINE IS SAFE AND THAT IT INDUCES THE DESIRED ANTIBODY AND IMMUNESYSTEM RESPONSES PHASE TWO CLINICAL TRIALS THE FIRST TEST OF THE VACCINE ON PATIENTS INFECTED WITH HIV BEGAN IN LONDON LAST MONTH SIMILAR TRIALS WILL COMMENCE LATER THIS YEAR AT OTHER MEDICAL CENTERS AROUND EUROPE TWO OTHER PROMISING MEDICINES NOW UNDER DEVELOPMENT TARGET DISEASES RANGING FROM ARTHRITIS AND CANCER TO ASTHMA AND SEPTIC SHOCK A DRUG THAT BRITISH BIOTECH DESIGNATES BB94 IS DESIGNED TO INHIBIT THE ACTION OF AN ENZYME CALLED MATRIX METALLOPROTEINASE OR MMP RESEARCH HAS LINKED THE MMP ENZYME WITH THE ABILITY OF CELLS FROM A CANCER TUMOR TO BORE THROUGH WALLS OF A BLOOD VESSEL AND SPREAD THROUGH THE BODY A PROCESS KNOWN AS METASTASIS THE UK'S CANCER RESEARCH CAMPAIGN AND BRITISH BIOTECH BEGAN INITIAL CLINICAL TRIALS LAST YEAR TESTING THE ABILITY OF BB94 TO PREVENT THE SPREAD OF SECONDARY TUMORS IN WOMEN WHO HAVE BREAST CANCER SEPARATE CLINICAL TESTS OF BB94 AGAINST OVARIAN AND OTHER CANCERS WILL BEGIN DURING THE FIRST HALF OF THIS YEAR 9302170154 930217 SCRIPPS COMPLETES SALE TO KIII CINCINNATI EW SCRIPPS CO SAID IT COMPLETED THE SALE OF PHAROS BOOKS AND WORLD ALMANAC EDUCATION TO KIII COMMUNICATIONS CORP FOR 30 MILLION THE SALE WILL RESULT IN AN 11 MILLION OR 15CENTASHARE GAIN FOR SCRIPPS WHICH EARNED 839 MILLION OR 113 A SHARE IN 1992 9302170153 930217 CINCINNATI MILACRON TO SELL SOME SHARES 4THPERIOD NET JUMPS CINCINNATI CINCINNATI MILACRON INC AIMING TO CUT ITS DEBT LOAD SAID IT PLANS TO OFFER 45 MILLION COMMON SHARES AND ALSO REPORTED FOURTHQUARTER EARNINGS MORE THAN DOUBLED THE MAKER OF MACHINE TOOLS AND PLASTICS MACHINERY HAD 1756 MILLION IN DEBT AT DEC 31 WHICH REPRESENTED 57 OF THE COMPANY'S CAPITAL AND THAT FIGURE SHOULD CLIMB HIGHER THIS QUARTER WHEN THE COMPANY RECORDS DEBT ASSOCIATED WITH ITS RECENT ACQUISITION OF GTE VALENITE CORP AND BOOKS REQUIRED ACCOUNTING CHANGES WHICH WILL CUT EQUITY SEPARATELY CINCINNATI MILACRON REPORTED SUBSTANTIALLY HIGHER FOURTHQUARTER EARNINGS NET INCOME CLIMBED TO 95 MILLION OR 34 CENTS A SHARE FROM 4 MILLION OR 15 CENTS A SHARE IN THE YEAREARLIER PERIOD THE 1992 FOURTHQUARTER EARNINGS INCLUDED A GAIN OF 25 MILLION OR NINE CENTS A SHARE FROM A TAXLOSS CARRYFORWARD IN THE MOST RECENT QUARTER SALES ROSE 8 TO 2181 MILLION COMPARED WITH 2019 MILLION A YEAR EARLIER THE COMPANY CREDITED THE EARNINGS IMPROVEMENT TO ITS WOLFPACK PROJECT WHICH IS ALLOWING CINCINNATI MILACRON TO MAKE MACHINE TOOLS MORE EFFICIENTLY IN A STATEMENT DANIEL J MEYER CHAIRMAN POINTED TO POSITIVE TRENDS FOR 1993 INCLUDING STRONG DEMAND FOR PLASTICS MACHINERY AND A PICKUP IN DEMAND FOR BASIC MACHINE TOOLS HOWEVER HE SAID THE SLOWDOWN IN THE AEROSPACE INDUSTRY RAISES CONCERNS INDEED ELI LUSTGARTEN AN ANALYST WITH PAINEWEBBER SAID COMPANY OFFICIALS SAID BOEING CO'S PROBLEMS COULD CUT 35 MILLION IN SALES THIS YEAR SALES LAST YEAR REACHED 7892 MILLION THE COMPANY PLANS TO FILE ITS STOCK OFFERING PLANS WITH THE SECURITIES AND EXCHANGE COMMISSION IN THE NEXT FEW WEEKS IT HAS 275 MILLION SHARES OUTSTANDING NOW CINCINNATI MILACRON MAY REDEEM ALL OR A PORTION OF ITS 12 SINKING FUND DEBENTURES DUE 2010 WHICH TOTALS 70 MILLION WITH PROCEEDS FROM THE OFFERING 9302170152 930217 INTERNATIONAL DISCONTENT IS GROWING ON CHINA'S FARMS BEIJING WORRIES AS PEASANTS PROTEST THEIR TREATMENT BY RURAL GOVERNMENTS BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA'S LEADERS AMID THEIR EUPHORIA OVER RAPID ECONOMIC GROWTH AND RECORD FOREIGN INVESTMENT ARE EXPRESSING CONCERN ABOUT CRACKS IN THEIR BEDROCK POLITICAL SUPPORT THE CHINESE FARMER FOR SEVERAL YEARS MANY OF CHINA'S 431 MILLION FARMERS THE SONS AND DAUGHTERS OF THE PEASANT REVOLUTIONARIES WHO BROUGHT MAO TSETUNG TO POWER HAVE BEEN FALLING BEHIND AS PEOPLE ON THE COAST AND IN URBAN AREAS GET RICHER OFFICIAL STATISTICS WHICH USUALLY UNDERSTATE REAL INCOMES BUT NONETHELESS REFLECT TRENDS INDICATE THAT FARMERS' ANNUAL EARNINGS AVERAGE TWOFIFTHS OF URBAN DWELLERS' AVERAGE INCOME 135 VS 315 MEANWHILE FARM PRODUCTION IN 1992 GREW BY ONLY ABOUT 3 WHILE INDUSTRIAL OUTPUT SOARED 19 BUT WHAT SEEMS TO BE WORRYING PARAMOUNT LEADER DENG XIAOPING AND OTHER SENIOR OFFICIALS IS THAT CHINESE FARMERS APPARENTLY HAVE BEEN DEMONSTRATING AND OCCUPYING GOVERNMENT OFFICES TO PROTEST WHAT THEY CONSIDER TO BE EXPLOITATION BY LOCAL GOVERNMENT AND PARTY OFFICIALS WHILE NEWS OF THE PROTESTS HAS BEEN SUPPRESSED EXCEPT FOR SCATTERED REPORTS LEAKED TO HONG KONG PUBLICATIONS CHINESE OFFICIALS HAVE BEEN PUBLICLY FRETTING ABOUT THE DIRE CONSEQUENCES FOR THE COMMUNIST PARTY SHOULD IT LOSE FARMERS' SUPPORT ON TUESDAY AGRICULTURE MINISTER LIU ZHONGYI JOINED THE DEBATE BY CRITICIZING LOCAL OFFICIALS FOR SADDLING FARMERS WITH EXCESSIVE TAXES AND FEES AT A NEWS CONFERENCE IN BEIJING MR LIU SUGGESTED THAT INSTEAD OF TAKING MONEY FROM FARMERS LOCAL BUREAUCRATS SHOULD FIND SOME OTHER KIND OF WORK AND THEREBY REDUCE THE COST OF GOVERNMENT WE ENCOURAGE CADRES AT LOCAL LEVELS PARTICULARLY THOSE YOUNG AND MIDDLEAGED CADRES TO ENGAGE IN BUSINESS TO OPEN COMPANIES AND ENTERPRISES MR LIU SAID IN CHINA GOVERNMENT IS NOW BLOATED AND OVERSTAFFED AND WE HAVE BEEN TRYING TO CUT THE SIZE OF GOVERNMENT TO REDUCE THE BURDEN ON FARMERS MR LIU'S COMMENTS ECHO SENTIMENTS EXPRESSED BY PARTY CHIEF JIANG ZEMIN AND PREMIER LI PENG AT RECENT MEETINGS ORGANIZED TO EXAMINE FARM PROBLEMS AT A MEETING IN WUHAN IN DECEMBER MR JIANG LISTENED TO FARMERS' COMPLAINTS AND SAID OFFICIALS WOULD FACE DISCIPLINARY ACTION IF TOTAL ASSESSMENTS EXCEEDED 5 OF FARMERS' INCOME AT THE SAME TIME MR DENG HIMSELF WARNED PARTY OFFICIALS IN JIANGSU PROVINCE OF TURMOIL IF AGRICULTURE GOES WRONG ACCORDING TO HONG KONG REPORTS MR LIU SAID THE GOVERNMENT ALREADY HAS TAKEN STEPS TO SOLVE THE MOST IMMEDIATE CAUSE OF FARMERS' IRE HE SAID THAT BEFORE THE CHINESE NEW YEAR IN LATE JANUARY THE GOVERNMENT PAID OFF THREE BILLION YUAN 527 MILLION IN IOUS GIVEN TO FARMERS BY LOCAL GOVERNMENT COMMODITIES BUYERS MR LIU SAID HE DIDN'T KNOW WHAT PORTION OF THE OUTSTANDING IOUS THIS REPRESENTED BUT THE OFFICIAL XINHUA NEWS AGENCY RECENTLY CALLED THE IOU PROBLEM A CHRONIC DISEASE THAT THREATENS TO ROCK THE VERY FOUNDATION OF AGRICULTURE IN THE FEVERPITCH EFFORT TO ATTRACT FOREIGN INVESTMENT ACROSS CHINA LOCAL GOVERNMENTS ARE SPENDING HUGE AMOUNTS ON INDUSTRIAL PARKS ROADS TELEPHONE SYSTEMS AND OTHER INFRASTRUCTURE PROJECTS A GOVERNMENT MAGAZINE REPORTED CHINA NOW HAS 8700 ECONOMIC DEVELOPMENT ZONES OF WHICH ONLY 213 WERE APPROVED BY THE CENTRAL OR PROVINCIAL GOVERNMENTS BUT BECAUSE CITIES AND TOWNS ARE BOTH APPROVING AND THEREFORE PAYING FOR THESE UNAUTHORIZED ZONES MANY HAVEN'T BEEN ABLE TO PAY FARMERS FOR THE GRAIN THAT FARMERS ARE REQUIRED TO SELL TO THE STATE AT FIXED PRICES HONG KONG MAGAZINES SAY THE RESULTING IOUS AND EXCESSIVE INFRASTRUCTURE LEVIES HAVE TRIGGERED MORE THAN 100 DEMONSTRATIONS IN RURAL AREAS INCLUDING FARMERS BLOCKING HIGHWAYS AND ATTACKING COUNTY GOVERNMENT OFFICES THAT MAY HAVE PROMPTED THE STATE PLANNING COMMISSION TO ANNOUNCE IN JANUARY THAT CENTRAL GOVERNMENT INVESTMENT IN AGRICULTURE WILL INCREASE BY A THIRD THIS YEAR OFFICIALS SAY THE INCREASE WILL MAKE AVAILABLE A TOTAL OF 67 BILLION FOR IMPROVING IRRIGATION AND PROVIDING MORE FERTILIZER PESTICIDES AND OTHER SUPPLIES ANALYSTS SAY THE REAL PROBLEM IS THAT THE FARM REFORMS LAUNCHED BY MR DENG IN THE EARLY 1980S HAVE SIMPLY RUN OUT OF STEAM AFTER DISBANDING MAO'S COMMUNES AND LEASING PLOTS TO LET FARM FAMILIES GROW AND SELL THEIR PRODUCE PRIVATELY CHINA ENJOYED SEVERAL YEARS OF RAPID PRODUCTION INCREASES BUT CHINESE AGRICULTURE IS NOW STUCK BETWEEN HIGH POPULATION AND LOW PRODUCTIVITY MECHANIZATION WOULD IMPROVE PRODUCTIVITY BUT IT WOULD ALSO THROW MILLIONS OF FARMERS OUT OF WORK OF CHINA'S 431 MILLION RURAL WORKERS FEWER THAN 200 MILLION ARE NEEDED ON THE FARM ACCORDING TO OFFICIAL STATISTICS ABOUT 105 MILLION WORK IN RURAL INDUSTRIES WHICH LEAVES CHINA WITH A RURAL LABOR SURPLUS OF 100 MILLION MANY OF THEM TRAVEL TO THE COAST OR BIG CITIES FOR TEMPORARY JOBS IN FACTORIES OR CONSTRUCTION SITES WITHOUT STRONG FARM POLICY DIRECTION FROM BEIJING ANALYSTS SAY LOCAL GOVERNMENTS ARE TAKING IT UPON THEMSELVES TO TINKER WITH PRICES AND POLICIES AS A RESULT THE COST OF FERTILIZER AND PESTICIDES HAS TRIPLED AND QUADRUPLED IN SOME AREAS WHILE THE PRICES FARMERS GET FOR THEIR GRAIN HAVE DECREASED IN MARCH THE NATIONAL PEOPLE'S CONGRESS CHINA'S LEGISLATURE IS SCHEDULED TO CONSIDER A NATIONAL FARM LAW THAT THE AGRICULTURE MINISTRY CONTENDS WILL FIX SUCH PROBLEMS AND MAKE FARREACHING CHANGES IN CHINESE FARM POLICY 9302170151 930217 INTERNATIONAL NEW ORDERS RISE 3 IN SWEDEN STOCKHOLM NEW ORDERS TO SWEDISH INDUSTRY ROSE 3 IN DECEMBER FROM NOVEMBER THE NATIONAL STATISTICS AGENCY SCB SAID COMPARED WITH DECEMBER 1991 NEW ORDERS WERE UP 10 IN THE MONTH IN THE FOURTH QUARTER ORDERS FELL 4 FROM THE THIRD QUARTER FOR THE FULL YEAR ORDERS WERE ALSO DOWN 4 FROM 1991 IN DECEMBER EXPORT ORDERS WERE UP 10 WHILE DOMESTIC ORDERS DECLINED 4 THE AGENCY SAID 9302170149 930217 LETTERS TO THE EDITOR OH SHOOT YOUR JAN 14 ARTICLE ON THE NATIONAL CHEERLEADER SOCIETY THE SALES FORCE WILL NEED TO HAVE THE BEST TEAM SPIRIT IN THE NATION STARTED RIGHT OUT WITH THE POMPOM MOM' WILL SOON HAVE THE PERFECT PLACE TO SHOP SINCE I HAD NEVER HEARD OF WOMEN MANNING ANTIAIRCRAFT GUNS NOR DID I REALIZE ONE COULD BUY ACKACK GUNS AT A SHOPPING CENTER NATURALLY I WAS INTRIGUED IMAGINE MY DISAPPOINTMENT WHEN THE GUNS TURNED OUT TO BE POMPONS THOSE FUZZY GLOBS THAT GROW ON THE ENDS OF CHEERLEADERS' ARMS YOU OWE ME AN ACKACK ARTICLE 9302170148 930217 CONTINENTAL BANK FIRST CHICAGO MAY RECEIVE HIGHER CREDIT RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS CONSIDERING RAISING THE CREDIT RATINGS OF TWO CHICAGO BANKS CONTINENTAL BANK CORP AND FIRST CHICAGO CORP CITING AN IMPROVED PROFIT OUTLOOK MOODY'S SAID CONTINENTAL HAS IMPROVED ITS REVENUE WITH AN ACTIVE MARKETING CAMPAIGN AND BETTER PRICING THE RATING CONCERN SAID IT WILL CONSIDER THE OUTLOOK FOR CONTINENTAL'S BUSINESSES AND THE PROSPECTS FOR CONTINUED PROFIT GAINS MOODY'S VOICED CONCERNS HOWEVER ABOUT THE QUALITY OF CONTINENTAL'S LOAN PORTFOLIO CONTINENTAL'S SENIOR DEBT IS NOW RATED BA2 ABOUT 14 BILLION OF SECURITIES ARE AFFECTED MOODY'S SAID IT WAS REVIEWING FIRST CHICAGO BECAUSE OF PROGRESS THE COMPANY HAS MADE WITH ITS PROBLEM ASSET PORTFOLIO MOODY'S WILL CONSIDER THE OUTLOOK FOR FUTURE ASSET QUALITY AND WHETHER THE COMPANY CAN SUSTAIN ITS SOURCES OF NONINTEREST INCOME FIRST CHICAGO'S SENIOR DEBT IS NOW RATED BAA1 ABOUT 27 BILLION OF SECURITIES ARE AFFECTED 9302170147 930217 BEAR STEARNS AIDES SELL SHARES NEW YORK BEAR STEARNS COS SAID EXECUTIVES SOLD 418271 COMMON SHARES IN A BLOCK TRANSACTION THAT THEY HAD ACQUIRED LATE LAST YEAR WHEN A DEFERREDPAYMENT PLAN WAS TERMINATED THE SHARES WERE SOLD TO HELP EXECUTIVES IN PAYING TAXES ON THE STOCK DISTRIBUTION THE INVESTMENT BANKING COMPANY HAD SAID IN DECEMBER THAT MAKING THE DISTRIBUTION AT THAT TIME WOULD PRESERVE ABOUT 165 MILLION IN TAX EXEMPTIONS 9302170146 930217 CUMMINS ENGINE JAPAN'S KOMATSU AGREE TO A LINK BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CUMMINS ENGINE CO AND KOMATSU LTD TENTATIVELY AGREED TO A JOINTVENTURE LINK THAT WILL GIVE JAPANESE HEAVYEQUIPMENT MAKER KOMATSU ACCESS TO CUMMINS'S DIESELEMISSIONSCONTROL TECHNOLOGY THE OFFHIGHWAY EQUIPMENT KOMATSU MAKES WILL FOR THE FIRST TIME BEGIN TO FACE REGULATORY POLLUTION LIMITS IN CALIFORNIA AND MOST LIKELY IN EUROPE WITHIN A FEW YEARS BRINGING ITS OWN ENGINES UP TO THOSE STANDARDS WOULD PROBABLY HAVE REQUIRED THE JAPANESE CONCERN ALREADY A MAJOR CUMMINS CUSTOMER TO MAKE HEAVY RESEARCH DEVELOPMENT AND ENGINEERING OUTLAYS FOR CUMMINS SAID AN OFFICIAL OF THE COLUMBUS IND DIESEL MAKER THE PROPOSED LINK PROVIDES A STRONGER MANUFACTURING BASE IN THE ASIAPACIFIC REGION IN THE FIRST STEP OF THE PLANNED COLLABORATION THE VENTURE PARTNERS EXPECT TO PRODUCE CUMMINS'S SMALLER ENGINES IN JAPAN THOSE ENGINES WILL BE INSTALLED IN KOMATSU'S CONSTRUCTION EQUIPMENT FOR WORLDWIDE SALES AND SOLD SEPARATELY BY CUMMINS TO OTHER MANUFACTURERS ALSO UNDER CONSIDERATION THE COMPANIES SAID IS A SEPARATE VENTURE IN WHICH A LARGE KOMATSU ENGINE WOULD BE PRODUCED AT A CUMMINS FACILITY IN THE US AND DISTRIBUTED THROUGH CUMMINS'S EXISTING CHANNELS CUMMINS THE NATION'S BIGGEST MAKER OF DIESEL ENGINES DOESN'T PRODUCE IN JAPAN CURRENTLY ALTHOUGH IT HAS BEEN EXPORTING TO THAT COUNTRY SINCE THE MID1960S KOMATSU MANUFACTURED AN ENGINE UNDER LICENSE FROM CUMMINS UNTIL THE 25YEAR ARRANGEMENT EXPIRED IN 1986 KOMATSU DOESN'T PRODUCE ENGINES IN THE US BUT IT HAS A 5050 US JOINT VENTURE KNOWN AS KOMATSU DRESSER CO WHICH MAKES BULLDOZERS AND OTHER CONSTRUCTION EQUIPMENT AND TO WHICH CUMMINS IS A MAJOR SUPPLIER SINCE THE MID1980S US ENVIRONMENTAL REGULATIONS HAVE FORCED DIESEL MANUFACTURERS TO HALVE THEIR TRUCK AND BUS ENGINES' RELEASE OF CERTAIN POLLUTANTS AND EVEN MORESTRINGENT REQUIREMENTS ARE ON THE HORIZON IN COMING YEARS MEETING THOSE STANDARDS HAS GIVEN DOMESTIC DIESELENGINE MANUFACTURERS A BIG TECHNOLOGICAL LEAD IN KOMATSU'S CASE HOWEVER THE TOUGHENING STANDARDS HAVEN'T BEEN A FACTOR BECAUSE ALL ITS ENGINES GO INTO OFFHIGHWAY EQUIPMENT KOMATSU AND CUMMINS SAID THEY PLAN TO SIGN A DEFINITIVE AGREEMENT BY THE MIDDLE OF THE YEAR 9302170145 930217 FORMER OFFICIALS OF KANSAS THRIFT ARE SUED BY RTC BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL THE RESOLUTION TRUST CORPORATION SUED FORMER OFFICERS AND DIRECTORS OF FRANKLIN SAVINGS ASSOCIATION OTTAWA KAN ALLEGING THAT THEIR NEGLIGENCE CAUSED 164 MILLION IN LOSSES BUT THE AGENCY'S SUIT FILED JUST BEFORE THE STATUTE OF LIMITATIONS ON THE FRANKLIN SEIZURE EXPIRED DIDN'T TACKLE THE QUESTION OF THE MASSIVE HIGHPROFILE HEDGING OPERATION THAT ONCE MADE THE 11 BILLIONASSET THRIFT A DARLING OF WALL STEET AND CAPITOL HILL THE SUIT FILED FRIDAY IN FEDERAL COURT IN KANSAS CITY KAN CLAIMS MISMANAGEMENT RESULTED IN LOSSES OF 70 MILLION ON MULTIFAMILY APARTMENT BONDS 646 MILLION ON FRANKLIN'S THREE SECURITIES BROKER SUBSIDIARIES AND 29 MILLION IN UNLAWFUL DIVIDENDS PAID IN 1988 AND 1989 BUT THE RTC FAILED TO MENTION FRANKLIN'S SOPHISTICATED THRIFTBASED RISKARBITRAGE OPERATION THE BRAINCHILD OF FORMER CHAIRMAN ERNEST FLEISCHER THAT AMOUNTED TO 90 OF THE FIRM'S BUSINESS WHEN THE OFFICE OF THRIFT SUPERVISION SEIZED FRANKLIN FEB 15 1990 IN WHAT BECAME ONE OF THE MOST CONTENTIOUS TAKEOVERS OF THE SAVINGS AND LOAN CLEANUP THE AGENCY CONTENDED THAT THE OPERATION WAS MORE SPECULATION THAN HEDGE AND WAS PRODUCING SIZABLE LOSSES MR FLEISCHER ARGUED THAT THE RISKARBITRAGE OPERATION WAS SOLVENT AND THAT THE GOVERNMENT NEVER UNDERSTOOD HOW IT FUNCTIONED CHARGING THAT THE RTC WOULD DRIVE THE THRIFT INTO THE GROUND HE SUED AND WON A FEDERAL JUDGE'S ORDER RETURNING CONTROL OF FRANKLIN TO HIM A SUBSEQUENT REVERSAL OF THE RULING BY A FEDERAL APPEALS COURT WHICH THE US SUPREME COURT ALLOWED TO STAND HELD THAT CONGRESS HAD GIVEN THE OTS THE POWER TO DEFINE WHAT WAS AN UNSAFE AND UNSOUND CONDITION NOT THE COURTS THE APPEALS COURT DID HOWEVER NOTE THAT THE RECORD REVEALS THE OWNERS DIVERTED MILLIONS OF DOLLARS INTO THEIR POCKETS NOTWITHSTANDING THE LOSSES BEING INCURRED BY THE ASSOCIATION CHARLES GERMAN AN ATTORNEY FOR THE FORMER OFFICERS AND DIRECTORS SAID THE GROUP DENIES ANY IMPROPRIETY HE CONTENDED THAT WHAT WASN'T IN THE SUIT WAS MORE SIGNIFICANT THAN WHAT WAS OUR VIEW IS THIS MEANS THERE WAS NOTHING WRONG WITH THE PRIMARY BUSINESS MR GERMAN SAID THEY PICKED THREE ISSUES AND THAT'S WHAT THEY'RE GOING TO GO WITH THE COMPLAINT COULD BE AMENDED TO INCLUDE THE HEDGING OPERATIONS BUT MR GERMAN AND OTHERS SAID THAT WAS UNLIKELY RTC OFFICIALS SAID THIS WAS JUST ANOTHER PROFESSIONAL LIABILITIES SUIT A SPOKESWOMAN SAID THE RTC CHARGED WITH RECOUPING MONEY FOR THE TAXPAYER INVESTIGATES EVERY INSTITUTION FOR POTENTIAL CLAIMS BUT DOESN'T FILE EVERY CLAIM OUT THERE AND NOTED THAT FRANKLIN'S FORMER OFFICERS AND DIRECTORS HAVEN'T ANY LIABILITY INSURANCE LEAVING ONLY PERSONAL ASSETS FROM WHICH TO RECOVER DAMAGES IN THIS CASE WE FEEL THE THREE INSTANCES WE ADDRESSED ARE ADEQUATE FOR RECOVERING CLAIMS THE SPOKESWOMAN SAID 9302170143 930217 LAW LEGAL BEAT AS SUITS AGAINST COMPANY OFFICERS LEVEL OFF DISCLOSURE CASES RISE BY EDWARD FELSENTHAL AND JUNDA WOO STAFF REPORTERS OF THE WALL STREET JOURNAL FOR CORPORATE DIRECTORS AND OFFICERS THERE'S SOME GOOD NEWS AND BAD NEWS THE GOOD NEWS IS THAT THE NUMBER OF LAWSUITS AGAINST CORPORATE OFFICIALS HAS LEVELED OFF IN RECENT YEARS AFTER BIG INCREASES IN THE 1980S BUT A SEPARATE TREND POSES A NEW LEGAL PERIL FOR DIRECTORS AND OFFICERS AN UPSWING IN LAWSUITS ACCUSING THEM OF DISTORTING OR BOTCHING FINANCIAL DISCLOSURE REPORTS IN THE LAST NINE YEARS THE KEY ISSUE IN ABOUT 10 OF LAWSUITS AGAINST CORPORATE OFFICIALS WAS FINANCIAL DISCLOSURE UP FROM 6 IN THE NINEYEAR PERIOD ENDING IN 1990 ACCORDING TO A SURVEY BY WYATT CO A CONSULTING FIRM LAWSUITS ALLEGING INADEQUATE OR INACCURATE FINANCIAL DISCLOSURE OFTEN ARE FILED BY SHAREHOLDERS WHO HAVE BOUGHT STOCK AFTER READING A COMPANY'S ROSY ASSESSMENT OF ITS PROSPECTS ONLY TO SEE SHARES PLUNGE WHEN THE COMPANY RELEASES DISAPPOINTING EARNINGS PHIL NORTON A WYATT CONSULTANT IN CHICAGO WHO WROTE THE SURVEY REPORT SAID SETTLEMENTS AND VERDICTS IN DISCLOSURE SUITS ARE DRIVING UP THE AVERAGE PAYOUT FOR LAWSUITS AGAINST CORPORATE OFFICIALS THE AVERAGE PAYOUT FOR A DISCLOSURE SUIT WAS 6 MILLION NEARLY TWICE THE AVERAGE FOR ALL SUITS THE OVERALL AVERAGE FOR CLAIMS AGAINST CORPORATE OFFICIALS WAS 326 MILLION IN THE LAST NINE YEARS AN INCREASE OF MORE THAN 15 MILLION FROM THE NINEYEAR PERIOD ENDING IN 1989 THE NUMBERS HAVEN'T BEEN ADJUSTED FOR INFLATION THE INCREASE IN THESE LAWSUITS ISN'T SURPRISING GIVEN THE NUMBER OF COMPANIES THAT POSTED EARNINGS DECLINES DURING THE RECESSION SAID ALAN BROMBERG A CORPORATELAW PROFESSOR AT SOUTHERN METHODIST UNIVERSITY HOWEVER HE SAID THE COURTS ARE GROWING INCREASINGLY IMPATIENT WITH THESE COOKIECUTTER SUITS FILED EVERY TIME A STOCK DROPS FOUR OR FIVE POINTS MR NORTON ESTIMATES THAT THE PRICE TAG ON MANY PENDING LAWSUITS AGAINST CORPORATE OFFICIALS COULD ULTIMATELY REACH MORE THAN 10 MILLION SUCH CLAIMS ARE USUALLY PAID OUT OF A COMPANY'S DIRECTORS AND OFFICERS LIABILITY INSURANCE IN THE SURVEY 81 OF THE COMPANIES SAID THEY HAVE SOCALLED D&O LIABILITY INSURANCE WYATT SAMPLED RETURNS FROM 1342 SURVEY PARTICIPANTS MOSTLY PUBLICLY TRADED COMPANIES THE SURVEYED COMPANIES HAD MEDIAN ASSETS OF ABOUT 550 MILLION IN A BIG BREAK FROM TRADITION A SAN FRANCISCO FIRM IS DITCHING ITS SUMMER PROGRAM THE CHIEF RECRUITING VEHICLE USED BY MAJOR LAW FIRMS TO WOO LAW STUDENTS LONG & LEVIT WILL CONTINUE TO COURT STUDENTS THROUGH SCHOOLYEAR CLERKSHIPS SCHEDULED TO START IN THE FALL STUDENTS WILL GET EITHER CLASS CREDIT OR PAYMENTS FOR THEIR WORK AT THE 84ATTORNEY FIRM THE CHANGE WAS DISCLOSED IN THE RECORDER A SAN FRANCISCO LEGAL NEWSPAPER THE FIRM DOESN'T EXPECT TO SAVE ANY MONEY BY USING CLERKSHIPS SAID HIRING PARTNER DEBRA MELLINKOFF BUT LONG & LEVIT SWITCHED TACTICS SHE SAID BECAUSE PARTNERS FELT THEY WEREN'T GETTING TO KNOW ALL THE SUMMER ASSOCIATES I WOULD CALL IT AN EXPERIMENT MS MELLINKOFF SAID IT'S AN EXPERIMENT THAT OTHER FIRMS WILL WATCH CLOSELY SOME LARGE FIRMS SPEND HUNDREDS OF THOUSANDS OF DOLLARS ON SUMMER PROGRAMS WHICH LAW FIRMS USE AS A WAY OF IMPRESSING AND VYING FOR YOUNG LAWYERS IN THE 1980S WHEN COMPETITION FOR TOPNOTCH TALENT WAS AT ITS HEIGHT SWANKY OUTINGS AND DINNERS WERE THE RULE FEW FIRMS ARE LIKELY TO ABANDON SUMMER PROGRAMS PREDICTS GLORIA PYSZKA CAREERSERVICES DIRECTOR AT STANFORD LAW SCHOOL HOWEVER SHE ADDS THE ECONOMY CHANGES THINGS AND PEOPLE ARE GOING TO BE LOOKING FOR DIFFERENT WAYS TO MEET THEIR HIRING NEEDS SOME FIRMS SAY THEY'RE HAPPY WITH THEIR PROGRAMS AS THEY ARE CHANGING TO A SCHOOLYEAR CLERKSHIP FOR INSTANCE WOULD ALLOW RECRUITMENT ONLY FROM NEARBY SCHOOLS SAID JACK MCLEAN HIRING PARTNER FOR THE SAN FRANCISCO FIRM PILLSBURY MADISON & SUTRO THE 600ATTORNEY FIRM'S SUMMER PROGRAM INCLUDES BARBECUES AND A WEEKEND IN CABINS ON LAKE TAHOE IN ADDITION MR MCLEAN SAID SCHOOLYEAR ASSOCIATES WOULD WORK PART TIME AND WOULDN'T BE ABLE TO PULL THE ALLNIGHTERS THAT SUMMER ASSOCIATES OCCASIONALLY ENDURE WE EVALUATE THEIR WORK PRODUCT IN A REALTIME SITUATION HE SAID WHO'S NEWS ABELARDO L VALDEZ CHIEF OF PROTOCOL DURING THE CARTER ADMINISTRATION JOINED SQUIRE SANDERS & DEMPSEY IN WASHINGTON ON AN OFCOUNSEL NONPARTNERSHIP BASIS MR VALDEZ AN INTERNATIONAL LAW SPECIALIST PREVIOUSLY PRACTICED ON HIS OWN AND AT LAXALT WASHINGTON PERITO & DUBUC A WASHINGTON LAW FIRM THAT FOLDED IN 1991 AT 400LAWYER SQUIRE SANDERS MR VALDEZ WILL HELP DEVELOP THE FIRM'S PRACTICE IN LATIN AMERICA THE CARIBBEAN AND SPAIN HELMSLEY SETBACK THERE'LL BE NO NEW TRIAL FOR LEONA M HELMSLEY THE HOTELIER CURRENTLY SERVING A FOURYEAR PRISON SENTENCE FOR TAX EVASION MRS HELMSLEY SOUGHT THE NEW TRIAL ON THE GROUND THAT PROSECUTORS MISLED JURORS ON HOW MUCH HER ACCOUNTANTS KNEW ABOUT CERTAIN ALLEGEDLY ILLEGAL TAX DEDUCTIONS BUT THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK REJECTED THE APPEAL SAYING THAT ANY EVIDENCE OF MISCONDUCT BY PROSECUTORS WAS KNOWN AT THE TIME OF THE ORIGINAL TRIAL SEC PROMOTION THOMAS C NEWKIRK WAS APPOINTED AN ASSOCIATE DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION AFTER ALMOST SEVEN YEARS AS CHIEF LITIGATION COUNSEL MR NEWKIRK WHO OVERSAW SEC ENFORCEMENT ACTIONS AGAINST THE NOWDEFUNCT DREXEL BURNHAM LAMBERT INC AND TWO OF ITS EMPLOYEES DENNIS LEVINE AND MICHAEL MILKEN NOW WILL BE RESPONSIBLE FOR SEC ENFORCEMENT INVOLVING ISSUES OF TRADING MARKETS AND CHANGES IN CORPORATE OWNERSHIP MR NEWKIRK SUCCEEDS HARRY J WEISS WHO LEFT THE SEC LAST MONTH TO JOIN THE WASHINGTON LAW FIRM ARNOLD & PORTER 9302170142 930217 GARNET RESOURCES OIL DISCOVERY HOUSTON GARNET RESOURCES CORP SAID IT DISCOVERED OIL IN ITS MARY NO 2 WELL IN THE PUTUMAYO REGION OF COLOMBIA THE WELL TESTFLOWED A COMBINED RATE OF 873 BARRELS OF OIL A DAY FROM THREE ZONES OF PRODUCTION ON A 1/4INCH TO 3/8INCH CHOKE OR RESTRICTED OPENING IN AN ADDITIONAL ZONE TESTED THE MARY NO 2 WELL FLOWED 763 BARRELS A DAY ON THE SAME SIZE CHOKE BUT THE COMPANY SAID THIS ZONE IS NOT A NEW DISCOVERY BUT PART OF A PRODUCING ZONE OF THE COMPANY'S MARY NO 1 WELL THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID THE ESTIMATED PRODUCTION RATE ON A PUMP FROM THE MARY NO 2 WOULD BE ABOUT 5300 TO 5500 BARRELS OF OIL A DAY 9302170141 930217 LETTERS TO THE EDITOR CANUTE WAS WASHOUT AS A DIVINE MONARCH POOR KING CANUTE FIRST TO BE HARRIED OUT OF ENGLAND BY HIS BROTHER HAROLD THEN TO BE MALIGNED BY THE PEOPLE OF NORTHUMBRIA AND WESSEX JUST BECAUSE HE LACKING IN SENSITIVITY TRAINING LAID WASTE TO THEIR LANDS ON HIS WAY TO BECOMING KING OF WESSEX AND FINALLY TO HAVE TO BE MISUNDERSTOOD BY HENRY AARON IN YOUR JAN 25 OUTLOOK COLUMN CANUTE THOUGHT HE COULD HOLD BACK THE TIDES SAYS MR AARON OF THE BROOKINGS INSTITUTION AN INSTITUTION FOUNDED TO PROMOTE RESEARCH AND EDUCATION IN THE SOCIAL SCIENCES THE LEGEND ACTUALLY ASSERTS THAT CANUTE WAS TEACHING HIS COURTIERS A LESSON SINCE THEY HAD PROFESSED HIM DIVINE HE THEREFORE HAD HIS THRONE PLACED ON THE SEASHORE AND AS THE WAVES APPROACHED HE ORDERED THE WAVES TO RECEDE WHEN THEY DID NOT OBEY CANUTE POINTED OUT TO HIS COURTIERS THAT ONLY GOD HAD THE DIVINE POWER NECESSARY TO COMMAND SUCH OBEDIENCE ALSO AS TO THE REFERENCE OF HIS BEING A DANISH KING HE WAS KING OF ENGLAND IN 1017 BEFORE HE ADDED KING OF DENMARK TO HIS TITLE IN 1018 AND BEFORE HE FINALLY WENT FOR THE TRIPLE CROWN KING OF NORWAY IN 1028 AFTER THE EUPHORIA OF INAUGURATION WEARS OFF PRESIDENT CLINTON MAY WISH TO TAKE MEMBERS OF HIS STAFF AND SELECTED MEMBERS OF THE BROOKINGS INSTITUTION DOWN TO THE POTOMAC OR TO CONGRESS FOR A REENACTMENT 9302170140 930217 REVIEW & OUTLOOK EDITORIAL THE US'S COUNTRYRISK PROBLEM THE VON ROLL COMPANY OF GERLAFINGEN SWITZERLAND IS A GLOBAL POWERHOUSE IN ANTIPOLLUTION TECHNOLOGY ITS RECENT TRIUMPHS INCLUDE CREATING THE WORLD'S MOST ADVANCED HAZARDOUS WASTE INCINERATOR BUILT IN GERMANY THIS MACHINE NOW MERRILY CONVERTS THE TOXIC BYPRODUCTS OF GERMAN INDUSTRY INTO BENIGN COMPOUNDS THAT DON'T POISON THE AIR AND WATER BUT VON ROLL IS IN TROUBLE WITH ITS GIMLETEYED SWISS BANKERS IT SEEMS THE COMPANY WAS CRAZY ENOUGH TO BRING ITS TECHNOLOGY TO AMERICA AND INVEST HERE I DON'T WANT TO COMPARE THE US TO LATIN AMERICA BUT WHEN OUR BANKS ARE TALKING ABOUT COUNTRY RISK' IN THE US IT TELLS YOU SOMETHING SAYS RUDOLF ZAENGERLE VON ROLL'S CHIEF OF ENVIRONMENTAL ENGINEERING COUNTRY RISK IS A CONDITION THAT USUALLY AFFLICTS THIRD WORLD NATIONS FOREIGN INVESTORS FRET ABOUT UNSTABLE POLITICS AND CAPRICIOUS BUREAUCRATS AND DEMAND A HIGHER RETURN BEFORE COMMITTING THEIR MONEY BUT NOW WE HEAR THE TERM BEING APPLIED MORE AND MORE TO THE UNITED STATES OUR WASTEFUL LEGAL CULTURE IS THE REASON A MAJOR GLOBAL FUND MANAGER RECENTLY TOLD US THE SAME STORY HE'S BULLISH ON ANY COUNTRY THAT INHERITED THE BRITISH LEGAL SYSTEM BUT WHILE FOREIGN INVESTORS STILL FIND THE US ATTRACTIVE OUR LEGAL AND REGULATORY MORASS IS INCREASINGLY VIEWED AS REASON TO INVEST SOMEWHERE ELSE HE SAYS VON ROLL IS A CASE IN POINT CONGRESS LONG AGO DIVINED THE NEED FOR INCINERATION AND GAVE EPA THE JOB OF APPROVING NEW PROJECTS YET AFTER 13 YEARS 160 MILLION AND AN UNBROKEN STRING OF 21 LEGAL AND REGULATORY VICTORIES VON ROLL'S INCINERATOR ON THE OHIO RIVER SITS IDLE WHATEVER THE LAW SAYS THE PLANT MAKES AN EASY TARGET FOR ALL KINDS OF POLITICAL OPPORTUNISTS AND LEGAL HARASSERS FROM GREENPEACE TO AL GORE ANYWHERE ELSE THERE'D FINALLY BE AN END TO THIS NIGHTMARE BUT AMERICA'S POLITICOLEGAL SYSTEM IS PRETTY SINGULAR IN THE WORLD SAYS MR ZAENGERLE THOUGH AN ARMY OF EPA SCIENTISTS VETTED THE PLAN A FEDERAL JUDGE IN OHIO CANCELED THE TEST AFTER PERUSING AN AFFIDAVIT FROM A GREENPEACE EXPERT WHO LATER FAILED TO SHOW UP FOR A HEARING MEANWHILE AN EPA DRAFT DOCUMENT LABELED DO NOT CITE OR QUOTE IS BEING CITED AND QUOTED BY GREENPEACE TO PROVE THAT VON ROLL INTENDS TO SPEW LETHAL DIOXIN ALL OVER ITS EAST LIVERPOOL NEIGHBORS EPA'S WILLIAM FARLAND PATIENTLY TESTIFIED THAT THIS IS NONSENSE AS GREENPEACE'S LAWYER ADMITTED TO THE AP LAST WEEK I KNOW NOTHING ABOUT ENVIRONMENTAL LAW AND THIS SCIENCE CRAP THE LEGAL CIRCUS WAS SUPPOSED TO PACK UP LAST WEEK BUT A CONTINUANCE WAS GRANTED SO ECOGADFLY BARRY COMMONER COULD BUZZ ACROSS THE STAGE THIS INDULGENCE WILL COST VON ROLL AN ADDITIONAL HALF A MILLION BUCKS THE COMPANY MAY ULTIMATELY PREVAIL BUT SUCH VICTORIES BEGIN TO LOOK PRETTY PYRRHIC EVERY DAY SPENT TWIDDLING ITS THUMBS MEANS 115000 GOES UP IN SMOKE AND GREENPEACE IS ALREADY LOOKING TO FIND ANOTHER JUDGE MR ZAENGERLE TELLS US WHEN IT'S NOT FIGHTING HARASSING SUITS VON ROLL HAS BATTLED POLITICAL BULLIES THE MOST NOTABLE IS AL GORE WHO PROMISED AFTER THE ELECTION TO TORPEDO THE PLANT LUCKILY HIS HANDPICKED EPA CHIEF CAROL BROWNER ACTUALLY SEEMS TO KNOW SOMETHING ABOUT THE ISSUE SHE GRABBED THE NEAREST AVAILABLE ESCAPE POD AND RECUSED HERSELF FREEING UP EPA'S PROFESSIONALS TO SUPPORT VON ROLL IN COURT IT'S NOT IN AMERICA'S INTEREST TO SEE A USEFUL AND PROFITABLE PROJECT TURNED INTO AN INDUSTRIAL MAUSOLEUM YET VON ROLL'S DOMESTIC PARTNERS LONG AGO TOOK FRIGHT AND HEADED FOR THE HILLS FUTURE CUSTOMERS LIKE DUPONT AND BASF ARE BAILING OUT OF THEIR COMMITMENTS AND BY CALLING IN THE PROJECT'S LOANS THE BANKS HAVE PUT VON ROLL'S FINANCES IN DUTCH WHEN THE BOARD MET LAST TUESDAY THERE WAS PLENTY OF ANGST ABOUT EAST LIVERPOOL AT SOME POINT THE SWISS MAY EVEN WALK AWAY FOREIGN INVESTORS AREN'T THE ENEMY IN TODAY'S WORLD WHAT MATTERS ISN'T WHERE A COMPANY IS HEADQUARTERED BUT WHERE IT CHOOSES TO BUILD ITS FACTORIES AND LABS AND OFFICES VON ROLL'S LEGALIZED WATER TORTURE HAS BEEN PICKED UP BY THE EUROPEAN PRESS AND TELEVISION THE MESSAGE THEY'RE SENDING OUT DOESN'T BODE WELL FOR WINNING AMERICA'S SHARE OF THE WORLD'S JOBS AND OPPORTUNITIES 9302170139 930217 MARKETING BRIEF DIED RICHARD SALANT 78 RETIRED CBS NEWS PRESIDENT TUESDAY IN FAIRFIELD CONN OF HEART FAILURE 9302170138 930217 CANADIAN FIRMS' ORDERS UP OTTAWA CANADIAN MANUFACTURERS' NEW ORDERS ROSE 25 IN DECEMBER FROM NOVEMBER AND THEIR SHIPMENTS INCREASED 13 STATISTICS CANADA A GOVERNMENT AGENCY SAID DECEMBER WAS THE THIRD CONSECUTIVE MONTH IN WHICH NEW ORDERS AND SHIPMENTS INCREASED THE RISE IN SHIPMENTS WAS LED BY TRANSPORTATION EQUIPMENT WHICH SHOWED A 47 INCREASE FROM NOVEMBER AND ELECTRICAL AND ELECTRONIC PRODUCTS WITH A 44 GAIN 9302170137 930217 CREDIT RATINGS KENTUCKY CENTRAL LIFE INSURANCE CO NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED THE RATING ON THIS COMPANY'S CLAIMSPAYING ABILITY TO R FROM DOUBLEB FOLLOWING THE INSURER'S MOVE FRIDAY TO SEEK REGULATORY PROTECTION FROM THE KENTUCKY INSURANCE COMMISSIONER S&P SAID THE R RATING IS ASSIGNED TO AN INSURANCE COMPANY THAT IS UNDER SUPERVISION OF STATE REGULATORS FOLLOWING REHABILITATION RECEIVERSHIP LIQUIDATION OR OTHER ACTION THAT REFLECTS REGULATORY CONCERN ABOUT THE INSURER'S FINANCIAL CONDITION THE RATING AGENCY ALSO SAID THAT THE LEXINGTON KY COMPANY COULD SEE LOSSES FROM ITS MORTGAGE AND REAL ESTATE PORTFOLIO OF AS MUCH AS 115 MILLION OVER THE NEXT SEVERAL YEARS S&P ADDED THAT IT BELIEVES THE POTENTIAL FOR SUCH LOSSES WOULD HAVE A SIGNIFICANTLY ADVERSE IMPACT ON THE COMPANY'S CAPITALIZATION KENTUCKY CENTRAL OFFICIALS COULDN'T BE REACHED FOR COMMENT 9302170136 930217 HONG KONG JOBLESS RATE HONG KONG HONG KONG'S UNEMPLOYMENT RATE SLIPPED TO 2 OF THE WORK FORCE IN THE NOVEMBERTOJANUARY PERIOD FROM 21 IN THE OCTOBERTODECEMBER PERIOD ACCORDING TO GOVERNMENT FIGURES 9302170135 930217 SAFECARD APPROVES BUYBACK CHEYENNE WYO SAFECARD SERVICES INC SAID ITS BOARD AUTHORIZED THE COMPANY TO REPURCHASE AS MANY AS FOUR MILLION SHARES OF ITS COMMON STOCK OUTSTANDING THE COMPANY WHICH NOTIFIES CREDIT CARD ISSUERS OF LOST OR STOLEN CARDS CITED ITS STRONG FINANCIAL POSITION AND THE CURRENT PRICE LEVEL OF OUR COMMON STOCK FOR THE MOVE THE COMPANY SAID THE REPURCHASES MAY BE MADE FROM TIME TO TIME THROUGH FEB 28 1994 SAFECARD CURRENTLY HAS 266 MILLION SHARES OUTSTANDING 9302170134 930217 INTERNATIONAL SKANDIA GROUP FOERSAEKRING STOCKHOLM SWEDISH INSURER SKANDIA GROUP FOERSAEKRING AB SAID IT WON'T PAY A DIVIDEND FOR 1992 IN 1991 SKANDIA PAID A DIVIDEND OF FOUR KRONOR 05 CENT A SHARE ALTHOUGH THE COMPANY ISN'T SCHEDULED TO RELEASE PRELIMINARY FULLYEAR EARNINGS UNTIL MARCH 18 SKANDIA SAID IT WILL REPORT A CONSIDERABLY REDUCED NET ASSET VALUE FOR 1992 CALCULATIONS ALREADY INDICATE NET ASSET VALUE DROPPED TO ABOUT 115 BILLION KRONOR AS OF DEC 31 FROM 144 BILLION A YEAR EARLIER THE DECLINE IN NET ASSET VALUE IS PRIMARILY A RESULT OF THE SHARP FALL IN THE VALUE OF THE GROUP'S SWEDISH AND FOREIGN REAL ESTATE PORTFOLIOS SAID THE GROUP 9302170133 930217 INTERNATIONAL OCEVAN DER GRINTEN EARNINGS AMSTERDAM THE DUTCH COPIER AND OFFICE SYSTEMS MAKER OCEVAN DER GRINTEN SAID ITS NET INCOME FOR 1992 FELL 14 DUE IN PART TO PRESSURES FROM THE WEAK ECONOMIC CLIMATE AND UNFAVORABLE CURRENCY EXCHANGE RATES PROFIT TOTALED 873 MILLION GUILDERS 468 MILLION DOWN FROM 1009 MILLION GUILDERS SALES EDGED UP 3 TO 266 BILLION GUILDERS FROM 258 BILLION 9302170132 930217 THE PROBLEM WITH THESE PIGGIES SOME SAY IS THEY STAY AT HOME BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THOUGH JAPAN'S ECONOMIC OUTLOOK IS GLUM AND RETAIL SALES ARE FALLING SOME HOPEFUL ANALYSTS HERE PREDICT A CONSUMERSPENDING BINGE WILL BRING BRIGHTER DAYS JUST LOOK AT THE CHARTS AND GRAPHS SAY SALOMON BROTHERS INC'S TOKYO BRANCH AND OTHERS IT'S PERFECTLY CLEAR BUT THEY HAVEN'T FACTORED IN THE PIGGYBANK INDICATOR SOME OF TOKYO'S HUNGRY RETAILERS SAY CHOKIN BAKO OR THE JAPANESE VERSION OF PIGGY BANKS HAVE BEEN ONE OF THEIR FEW HOT SELLERS LATELY JAPANESE CONSUMERS APPARENTLY ARE INTENT ON HUNKERING DOWN SALESPEOPLE AT SEIBU LOFT A BIG TOKYO RETAILING CHAIN STUMBLED ACROSS THE TREND A FEW DAYS BEFORE THE NEW YEAR'S HOLIDAY ON A HUNCH THEY SET UP A STAND TO DISPLAY INEXPENSIVE COIN SAVINGS BANKS AT ONE OF THEIR DOWNTOWN STORES THE BANKS SOLD OUT WITHIN DAYS MANAGERS AT SOME TOKYO DEPARTMENT STORES SAY COINBANK SALES ARE DOUBLE LAST YEAR'S LEVELS JAPAN'S FORMERLY FREESPENDING SHOPPERS SEEM TO HAVE REDISCOVERED THE VALUE OF SMALL CHANGE SAYS A SPOKESWOMAN FOR ONE SEIBU STORE PIGGYBANK BUYERS HAVE MANY OPTIONS TO CHOOSE FROM IN JAPAN AT SEIBU YOU CAN PICK UP A ROTATING PIGGY BANK THAT SAYS SQUEALS ACTUALLY MONEY MAKES MY HEAD SPIN THERE'S THE MICKEY MOUSE BANK THERE'S THE BANK IN THE SHAPE OF THE EARTH A CLOTHCOVERED MINIATURE MATTRESS IMPORTED FROM THE US IS LABELED THE SAFEST BANK IN THE WORLD SAVERS WHO BELIEVE JAPAN'S RECESSION WILL REQUIRE A SUPREME SHOW OF ENDURANCE CAN OPT FOR THE CROUCHINGSUMOWRESTLER BANK BUT SIMPLE MODELS SOLD AT ROCKBOTTOM PRICES HAVE BEEN THE MOST POPULAR LATELY THE SEIBU SPOKESWOMAN SAYS THE TOP SELLER IS A 10 TIN DRUM WITH A HOLE IN IT LAST MONTH SHOPPERS AT SEIBU'S STORE IN TOKYO'S IKEBUKURO DISTRICT SNAPPED UP 300 OF THE DRUMS IN ONE WEEK PARENTS COMMITTED TO TEACHING THEIR CHILDREN THE IMPORTANCE OF SAVING BOUGHT MANY OF THE DRUMS THE SPOKESWOMAN SAYS THESE DAYS JAPANESE CONSUMERS ARE CONCERNED ABOUT PRODUCTS THAT FIT THEIR EVERYDAY LIFE NOT THE LATEST THING FROM LOUIS VUITTON SAYS TAKAYUKI SUZUKI A RETAIL ANALYST AT MERRILL LYNCH JAPAN INC HE FIGURES ANY NEW INCOME WINDFALL FOR CONSUMERS WILL GO RIGHT INTO THE PIGGY BANKS AND THAT'S ENOUGH TO MAKE SALESSTARVED RETAILERS AND SOME OPTIMISTIC ECONOMISTS CRINGE 9302170131 930217 PICTURETEL BUYS SOFTWARE ASSETS DANVERS MASS PICTURETEL CORP SAID IT BOUGHT SUBSTANTIALLY ALL THE ASSETS OF KA TELETECH CORP A BALTIMORE DEVELOPER OF SCHEDULING RESERVATION ACCOUNTING AND NETWORK MANAGEMENT SOFTWARE FOR VIDEOCONFERENCING SYSTEMS AND NETWORKS TERMS WEREN'T DISCLOSED THE PURCHASE INCLUDES RIGHTS TO KA'S TELECONFERENCING SOFTWARE SYSTEM ALL KA TELETECH PRINCIPALS WILL BECOME EMPLOYEES OF PICTURETEL AND RELOCATE TO DANVERS PICTURETEL SAID 9302170130 930217 INTERNATIONAL JAPANESE STEEL OUTPUT UP TOKYO JAPAN'S STEEL PRODUCTION GREW 52 IN JANUARY FROM THE LIKE MONTH A YEAR EARLIER TO 8550000 METRIC TONS THE JAPAN IRON AND STEEL FEDERATION SAID A METRIC TON IS 22046 POUNDS THE LATEST FIGURE FOLLOWS A 09 INCREASE IN DECEMBER FROM A YEAR EARLIER WHICH WAS THE FIRST YEARONYEAR RISE IN 17 MONTHS JANUARY'S STEEL PRODUCTION MEANWHILE REPRESENTED AN UNADJUSTED 17 RISE FROM DECEMBER THE PRODUCTION INCREASES OVER THE PAST TWO MONTHS FOLLOW THE VERY LOW LEVELS OF THE YEAR BEFORE WHEN STEELMAKERS CURBED PRODUCTION SHARPLY TO REDUCE INVENTORY AMID SHRINKING DEMAND A FEDERATION OFFICIAL SAID 9302170129 930217 WHITE HOUSE REVIEWS ACCORD ON AIRBUS AID IN 1992 PACT EC AGREED TO CURB ITS SUBSIDIES TO EUROPEAN CARRIER BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS BEGUN A REVIEW OF A 1992 TRADE PACT IN WHICH THE EUROPEAN COMMUNITY AGREED TO CURB SUBSIDIES FOR ITS AIRBUS INDUSTRIE THE AGREEMENT BROUGHT A NEGOTIATED END TO A DECADELONG DISPUTE BETWEEN THE US AND EC OVER SUBSIDIES TO THE COMMERCIAL AIRCRAFT INDUSTRY BUT AT A TOWN MEETING LAST WEEK IN DETROIT PRESIDENT CLINTON ACCUSED THE EC OF CONTINUING TO SUBSIDIZE AIRBUS UNFAIRLY I'M NOT GOING TO ROLL OVER AND PLAY DEAD MR CLINTON VOWED SINCE THEN THE ADMINISTRATION HAS BEGUN TO REVIEW THE TERMS OF THE DEAL SAID A US OFFICIAL WE'RE LOOKING AT EVERYTHING THROUGH THE PHILOSOPHICAL LENS OF THE NEW ADMINISTRATION SAID THE OFFICIAL WHO EMPHASIZED THAT THE REVIEW WAS AT AN EARLY STAGE THE US AND THE EC WANT TO EXTEND THE SUBSIDY RESTRICTIONS IN THE AIRBUS ACCORD TO OTHER NATIONS AND OTHER PRODUCTS BUT THAT EFFORT WHICH BEGAN LAST YEAR HAS BEEN TIED TO THE WORLD TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND HAS PROCEEDED FITFULLY THAT EFFORT WILL ALSO BE PART OF THE ADMINISTRATION'S REVIEW THE OFFICIAL SAID THE NUB OF THE AIRBUS DEAL LIMITED THE AMOUNT OF GOVERNMENT SUBSIDIES THAT THE US AND EUROPEAN AEROSPACE INDUSTRIES CAN RECEIVE TO ABOUT 33 OF TOTAL PRODUCTDEVELOPMENT COSTS EUROPEAN DIPLOMATS SAID THEY WERE MYSTIFIED AT THE CLINTON ADMINISTRATION'S CRITICISM OF AIRBUS SUBSIDIES AND INITIALLY FIGURED THE NEW PRESIDENT DIDN'T UNDERSTAND THE TERMS OF THE SUBSIDY PACT BUT WHEN INFORMED OF THE REVIEW A SENIOR EC DIPLOMAT SAID WE'D CAUTION PRUDENCE ABOUT REOPENING SOMETHING THAT WAS THE SUBJECT OF LONGFOUGHT NEGOTIATIONS THE AIRBUS REVIEW COMES AT A TIME OF GROWING CONCERN OVER THE PLIGHT OF THE US AVIATION INDUSTRY TRANSPORTATION SECRETARY FEDERICO PENA AND CONGRESSIONAL LEADERS YESTERDAY PROPOSED A 15MEMBER COMMISSION TO MAKE RECOMMENDATIONS TO IMPROVE THE VIABILITY OF US AIRLINES AND AIRCRAFT MANUFACTURERS AIRBUS INDUSTRIE WHICH WAS FORMED IN THE EARLY 1970S IS A CONSORTIUM COMPRISING AEROSPATIALE OF FRANCE BRITISH AEROSPACE PLC CONSTRUCCIONES AERONAUTICAS SA OF SPAIN AND DEUTSCHE AIRBUS A UNIT OF GERMANY'S DAIMLERBENZ AG 9302170128 930217 COMMODITIES GOLD FUTURES PRICES JUMP ON CHINESE BUYING AND SHARP DECLINES IN DOLLAR AND US STOCKS BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES SURGED MORE THAN 3 AN OUNCE PROPELLED BY THE SLUMP IN BOTH THE DOLLAR AND US STOCKS HEAVY CHINESE BUYING ALSO CONTRIBUTED TO THE FIRMER TONE ANALYSTS SAID THERE WAS A FLIGHT TO SAFETY INTO GOLD WITH THE SHARPLY LOWER DOLLAR AND THE SHARP BREAK IN STOCK PRICES DRIVING INVESTORS SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH IN NEW YORK GOLD VIEWED AS A HEDGE AGAINST INFLATION TENDS TO RISE WHEN THE DOLLAR FALLS AND A WEAK DOLLAR TENDS TO STOKE INFLATION BY MAKING IMPORTS MORE EXPENSIVE THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS A CLOSELY WATCHED GAUGE OF INFLATIONARY PRESSURES AT THE RAWMATERIAL LEVEL YESTERDAY ROSE 38 TO 2021 ON THE NEW YORK COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY ROSE 340 TO 33340 AN OUNCE THE RALLY IN THE ACTIVELY TRADED APRIL CONTRACT COMES LESS THAN A WEEK AFTER LAST WEDNESDAY'S 410ANOUNCE JUMP IN APRIL GOLD WHEN THE CONTRACT CLOSED AT 33370 THE RECENT SPURT IN GOLD HAS A LOT TO DO WITH SURGING DEMAND FROM CHINA BULLION DEALERS SAID SWISS BULLION DEALERS SAID THAT CHINA'S CENTRAL BANK THE PEOPLE'S BANK HAS BEEN PURCHASING GOLD WHENEVER IT DIPS BELOW 330 AN OUNCE THE BANK IS BELIEVED TO HAVE BEEN A DIRECT BUYER OF A BIG PORTION OF THE 400 MILLION TONS OF GOLD RESERVES SOLD LAST YEAR BY THE DUTCH CENTRAL BANK TRADERS SAID CHINA'S FOREIGN EXCHANGE RESERVES ARE APPROACHING 60 BILLION AND DEALERS SAID THE COUNTRY IS ANXIOUS TO PLACE AN INCREASING PROPORTION OF ITS FOREIGN RESERVES INTO GOLD AS A HEDGE AGAINST POTENTIAL POLITICAL CONFLICT WITH THE US AND BRITAIN PRIVATE CITIZENS IN CHINA ARE ALSO TRYING TO HEDGE BY INVESTING IN GOLD ANALYSTS SAID THEY'RE BUYING GOLD AS A KIND OF PROXY FOR INTERNATIONAL CURRENCIES AS THEIR LOCAL CURRENCY CONTINUES TO WEAKEN AGAINST THE DOLLAR AND OTHER WESTERN CURRENCIES SAID GEORGE MILLINGSTANLEY A SENIOR ANALYST WITH SHEARSON LEHMAN BROTHERS BUT SOME ANALYSTS WARNED THAT CHINESE BUYING OF BULLION HAS ITS LIMITS THE FAR EAST HAS SEEN SOME VERY GOOD PHYSICAL DEMAND FOR GOLD BUT THAT DEMAND IS QUITE PRICESENSITIVE SAID TED ARNOLD A LONDONBASED METALS SPECIALIST FOR MERRILL LYNCH AT PRICES AROUND 340 TO 350 AN OUNCE DEMAND FROM THE FAR EAST FOR BULLION WILL DROP OFF SHARPLY THE MERRILL LYNCH VICEPRESIDENT PREDICTED IT WOULD BE TERRIBLY DIFFICULT AT THIS STAGE TO GET EXCITED ABOUT GOLD TAKING OFF MR ARNOLD SAID ANALYSTS SAID THE GOLD MARKET HAD LARGELY SHRUGGED OFF LAST WEEK'S RUMORS OF CENTRAL BANK GOLD SALES BY THE BANK OF FRANCE SUCH UNCONFIRMED RUMORS WERE BELIEVED TO HAVE HELPED PUSH GOLD LOWER ON THURSDAY AND FRIDAY I WOULD BE VERY SURPRISED IF FRANCE HAS SOLD GOLD SAID MICHAEL BROWN OF THE WASHINGTONBASED GOLD INSTITUTE FRANCE HAS ALWAYS BEEN A CONSERVATIVE HOLDER OF GOLD HE ADDED MARKET WATCHERS NOW BELIEVE THAT A MAJOR SOURCE OF LAST WEEK'S DECLINE WAS HEAVY SELLING BY AUSTRALIAN AND SOUTH AFRICAN GOLD PRODUCERS THE AUSTRALIAN DOLLAR AND THE SOUTH AFRICAN RAND ARE WEAK AND THE DECLINE IN THE CURRENCIES RAISES THE GOLD PRICE RECEIVED BY MINING COMPANIES IN THOSE TWO COUNTRIES CONSEQUENTLY AUSTRALIAN AND SOUTH AFRICAN PRODUCERS WERE ENCOURAGED TO SELL SOME OF THEIR INVENTORY THROUGH THE FUTURES AND OPTIONS MARKETS DEALERS SAID IN OTHER COMMODITY MARKETS YESTERDAY SUGAR THE PRICE OF SUGAR FUTURES RALLIED TO SIXMONTH HIGHS ON NEWS OF A PRODUCTION SHORTFALL IN CUBA THAT TRADERS SAID HAS LED HAVANA TO BUY LARGE VOLUMES OF SUGAR ON THE WORLD CASH MARKET HARVEST DELAYS AND A LOWER CROP THIS SEASON HAVE FORCED THE CUBANS TO BUY ABOUT 100000 TONS OF RAW SUGAR FROM THAILAND TO MEET THEIR LONGSTANDING CONTRACTUAL OBLIGATION TO CHINA SAID SANDRA KAUL A SENIOR ANALYST WITH SHEARSON RUMORS OF STRONG KENYAN BUYING ALSO PUSHED UP SUGAR FUTURES DEALERS SAID ON THE COFFEE SUGAR & COCOA EXCHANGE SUGAR FOR MARCH DELIVERY SETTLED 048 CENT HIGHER AT 896 CENTS A POUND JUST SHY OF ITS LIFEOFCONTRACT HIGH OF NINE CENTS A POUND TRADERS SAID THAT CUBA'S SUGAR HARVEST FOR THE CURRENT SEASON WILL BE DOWN CONSIDERABLY FROM LAST YEAR'S LEVELS OF AROUND SEVEN MILLION METRIC TONS BECAUSE OF A LACK OF FERTILIZERS AND FUEL OIL MS KAUL SAID SHE DOESN'T EXPECT MARCH SUGAR TO EASILY BREACH THE 10CENTAPOUND LEVEL IN THE NEAR FUTURE EVEN WITH THE RECENT PRICE STRENGTH THE MARKET HAS ONLY RETURNED TO THE MIDPOINT OF A TWOYEAR TRADING RANGE SHE SAID ENERGY OPEC MINISTERS APPARENTLY DIDN'T GO FAR ENOUGH WITH THEIR SECONDQUARTER PRODUCTION CUTS TO SUIT TRADERS ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FUTURES PRICES FOR MARCH FELL 45 CENTS A BARREL TO FINISH AT 1953 AFTER THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AGREED TO REDUCE ITS CEILING BY ONE MILLION BARRELS A DAY TO 23582 MILLION IN FACT IF OPEC MEMBERS REALLY DO ABIDE BY THE NEW AGREEMENT ABOUT 14 MILLION BARRELS A DAY WOULD COME OFF THE MARKET GIVEN CURRENT OVERPRODUCTION HOWEVER SEVERAL MARKET WATCHERS FIGURE THE MEETING RAN AN UNEXPECTED FOUR DAYS LONG BECAUSE SOME OIL PRODUCERS ARE UNHAPPY WITH THE AGREEMENT AND THEREFORE MAY NOT ABIDE BY IT THE NEWS ON CRUDE AS WELL AS OVERSUPPLY PUSHED PETROLEUM PRODUCTS PRICES LOWER TOO MARCH GASOLINE LOST 130 CENTS A GALLON TO SETTLE AT 5228 CENTS WINTER STORMS AIDED HEATING OIL SOMEWHAT BUT THE MARCH CONTRACT STILL LOST GROUND SETTLING AT 5514 CENTS A GALLON DOWN 49 CENT THE SEVERE WINTER WEATHER IN THE MIDWEST AND NORTHEAST ADDED 55 CENTS A MILLION BRITISH THERMAL UNITS TO MARCH NATURAL GAS WHICH FINISHED AT 1765 LIVESTOCK & MEATS THE CATTLE FUTURES CONTRACT FOR FEBRUARY DELIVERY ROSE IN THE WAKE OF A WINTER STORM THAT DUMPED SNOW ON FEEDLOTS ACROSS MUCH OF THE SOUTHERN PLAINS THE SNOW IS EXPECTED TO FURTHER SLOW THE GROWTH OF YOUNG CATTLE ON THE FEEDLOTS WHICH ARE STILL FEELING THE EFFECTS OF A THANKSGIVING STORM THAT TURNED THE LOTS INTO MUD FEEDLOTS FATTEN YOUNG CATTLE FOR SLAUGHTER IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE FEBRUARY CATTLE CONTRACT ROSE 017 CENT A POUND TO SETTLE AT 8287 CENTS PRICES OF FUTURES CONTRACTS FOR DELIVERY AFTER FEBRUARY SLIPPED ON THE REASONING THAT THE STORM WILL POSTPONE THE MATURITY OF MANY YOUNG CATTLE UNTIL LATER IN THE YEAR WHICH WOULD INCREASE BEEF SUPPLIES THEN THE DUTCH CENTRAL BANK LAST YEAR SOLD 400 METRIC TONS OF GOLD RESERVES THE AMOUNT WAS INCORRECTLY GIVEN AS 400 MILLION TONS IN YESTERDAY'S COMMODITIES COLUMN 9302170127 930217 RULE OF LAW THE SUPREME COURT'S BAD LANGUAGE BY ROBERT F NAGEL BY NOW EVERYONE HAS HEARD ABOUT COLORADO'S AMENDMENT 2 WHICH PROHIBITS STATE AND LOCAL OFFICIALS FROM TREATING HOMOSEXUALITY AS THE BASIS OF ANY CLAIM OF MINORITY STATUS OR DISCRIMINATION AMENDMENT 2 HAS LED TO AN ECONOMIC BOYCOTT DEMONSTRATIONS TALKSHOW HARANGUES AND CONSIDERABLE NAMECALLING COLORADO HAS BEEN DUBBED THE HATE STATE DESPITE THIS ACCUSATION THERE ARE AS IN MOST MORAL DISPUTES LEGITIMATE CONCERNS ON BOTH SIDES OPPONENTS OF AMENDMENT 2 INVOKE IMPORTANT VALUES SUCH AS PERSONAL AUTONOMY AND POLITICAL EQUALITY SUPPORTERS HAVE DOUBTS ABOUT THE GROWING LIST OF GROUPS RECEIVING SPECIAL PROTECTION UNDER VARIOUS CIVIL RIGHTS LAWS AND THEY ARE DEEPLY UNCERTAIN ABOUT EGALITARIAN EXPERIMENTATION THAT WILL HAVE CONSEQUENCES FOR SUCH A SENSITIVE AND MYSTERIOUS MATTER AS SEXUAL IDENTITY AS SO OFTEN HAPPENS IN OUR SOCIETY THIS CONTROVERSY HAS ENDED UP IN FRONT OF JUDGES MANY AMERICANS BELIEVE THAT THE COURTS CAN REFINE THE SHRILL RHETORIC FOUND IN THE WORLD OF POLITICS THEY HOPE THAT ADJUDICATION CAN PROMOTE THOUGHTFUL FAIR EVALUATION OF THE VARIOUS HEARTFELT POSITIONS BUT WHAT IS SURPRISING AND SOBERING IS THE EXTENT TO WHICH THE HARSH CHARGES THAT DOMINATE IN THE POLITICAL ARENA ARE REPEATED IN CONSTITUTIONAL ARGUMENTS CONSIDER THE BRIEF FILED BY THE PLAINTIFFS AS A PART OF THEIR EFFORT TO BLOCK IMPLEMENTATION OF AMENDMENT 2 IT IDENTIFIES A PROAMENDMENT GROUP CALLED COLORADO FOR FAMILY VALUES AND ASSERTS THAT CFV WAS ASSISTED IN ITS WORK BY AN ORGANIZATION FOUNDED BY THE REVEREND PAT ROBERTSON THE PLAINTIFFS QUICKLY CONCLUDE THAT CFV'S EFFORTS WERE PART OF A CAMPAIGN BY THE RELIGIOUS RIGHT THE BRIEF ASSERTS THAT THE APPROACH DEVELOPED BY THE NEW RIGHT' TO PROMOTE ANTIHOMOSEXUALITY MEASURES IS AKIN TO HITLER'S APPEALS IN CASE IT IS STILL LESS THAN CLEAR WHAT THE SPECIFIC CONNECTION IS BETWEEN CFV AND THE HITLERIAN FORCES OF THE NEW RIGHT THE BRIEF NOTES THAT AT LEAST TWO NATIONAL RELIGIOUS RIGHT ORGANIZATIONS ARE BASED IN THE SAME TOWN COLORADO SPRINGS AS CFV AND THAT SEVERAL EMPLOYEES OF JAMES DOBSON'S GROUP FOCUS ON THE FAMILY SIT ON ADVISORY BOARDS OF CFV QUIBBLERS MIGHT ASK WHAT ALL THIS VAGUELY CONSPIRATORIAL STUFF HAS TO DO WITH ANY LEGAL ISSUE RELIGIOUS PEOPLE ARE AFTER ALL PERMITTED TO PARTICIPATE IN POLITICS THE PLAINTIFFS' ANSWER IS THAT IT SUPPORTS THEIR ARGUMENT THAT THE PURPOSES OF THOSE WHO VOTED FOR AMENDMENT 2 WERE ILLEGITIMATE THOSE PURPOSES ARE DESCRIBED AS A DESIRE TO HARM A POLITICALLY UNPOPULAR GROUP AND AS AN EXPRESSION OF PREJUDICE AND FEAR AND ANTIPATHY A PURPORTEDLY NEUTRAL RATIONALE WAS USED TO MASK A CAMPAIGN OF HATRED NOW SIMPLISTIC ACCUSATIONS MAY BE AN INEVITABLE PART OF OUR POLITICAL LIFE BUT HOW DID IT HAPPEN THAT IN OUR ORDINARY COURTS OF LAW IT CAME TO BE THOUGHT APPROPRIATE TO CHARACTERIZE THE PUBLIC DECISIONS OF OUR FELLOW CITIZENS IN SIMILARLY CRUDE WAYS THE DISMAYING ANSWER IS THAT MANY OF THE CONSTITUTIONAL DECISIONS OF THE SUPREME COURT INVITE EXACTLY THIS KIND OF TALK FOR EXAMPLE IN A LARGE NUMBER OF CASES INVOLVING SUCH COMPETING VALUES AS NEIGHBORHOOD SCHOOLING NUMERICAL RACIAL BALANCE AND FUNDING FOR EDUCATIONAL QUALITY THE COURT HAS BEEN SATISFIED TO CHARACTERIZE SCHOOL DISTRICT POLICIES AS SEGREGATIVE IN CRAIG V BOREN IT DESCRIBED A STATUTE THAT PERMITTED FEMALES TO PURCHASE BEER AT AN EARLIER AGE THAN MALES AS INVIDIOUS IT ONCE DECLARED THAT A ZONING ORDINANCE TREATING GROUP HOMES FOR THE MENTALLY RETARDED DIFFERENT FROM OTHER GROUP HOMES WAS BASED ON AN IRRATIONAL PREJUDICE AN ELIGIBILITY REQUIREMENT FOR FOOD STAMPS THAT EXCLUDED HOUSEHOLDS CONTAINING UNRELATED MEMBERS WAS ACCORDING TO THE COURT BASED ON A BARE CONGRESSIONAL DESIRE TO HARM A POLITICALLY UNPOPULAR GROUP AND A PROHIBITION ON THE DISTRIBUTION OF CONTRACEPTIVES THAT DISTINGUISHED BETWEEN MARRIED AND UNMARRIED PEOPLE WAS DESCRIBED AS WHOLLY IRRATIONAL WORDS LIKE PREJUDICED AND INVIDIOUS AND IRRATIONAL FORM JUST PART OF THE BLEAK PICTURE THAT THE COURT PAINTS OF THE REST OF US IN A WIDE VARIETY OF SETTINGS THE JUSTICES HAVE DESCRIBED OUR ELECTED REPRESENTATIVES AS BEING INTENT ON NOTHING LESS THAN THE SUBVERSION OF THE CONSTITUTION ITSELF A LAW THAT AUTHORIZED PUBLIC SCHOOL STUDENTS TO HAVE A MOMENT OF SILENT MEDITATION OR PRAYER WAS UNDER THE REASONING IN WALLACE V JAFFREE INTENDED TO ENDORSE PRAYER AND EVEN TO RETURN OFFICIAL PRAYER TO THE PUBLIC SCHOOLS SIMILARLY EDWARDS V AQUILLARD HELD THAT A LAW REQUIRING BALANCED TREATMENT OF EVOLUTION AND CREATION SCIENCE IN PUBLIC SCHOOLS WAS CLEARLY INTENDED TO ADVANCE THE CREATIONISTS' RELIGIOUS VIEWPOINT WHEN CONGRESS ENACTED THE FLAG DESECRATION ACT OF 1989 IT WAS NOT GIVING VOICE TO LEGITIMATE CONCERNS ABOUT THE IMPORTANCE OF THE FLAG AS A NATIONAL SYMBOL IT WAS SAID THE COURT PROVIDING FURTHER PROOF OF THE POPULAR INCLINATION TO STIFLE DISSENTING IDEAS WHEN A STATE REQUIRED THAT WOMEN SEEKING ABORTIONS BE PROVIDED WITH CERTAIN TRUTHFUL BUT TROUBLING INFORMATION THAT STATE WAS NOT MERELY MISGUIDED ON A MORALLY DIFFICULT ISSUE IT WAS SEEKING TO INTIMIDATE WOMEN AND DEFY THE LAWFUL AUTHORITY OF THE COURT IN MUCH THE SAME WAY THAT SOUTHERN RIOTERS TRIED TO BLOCK SCHOOL DESEGREGATION IT MAY BE THAT ALL THESE LAWS WERE ON THE WHOLE BAD LAWS SOME OF THE MOTIVATIONS THAT WENT INTO THEIR ENACTMENT PROBABLY WERE REGRETTABLE OR EVEN REPREHENSIBLE NEVERTHELESS THE KIND OF LANGUAGE USED BY THE COURT DOES NOT LEAVE ENOUGH ROOM FOR THE DIFFICULTY OF THE JUDGMENTS INVOLVED AND THE COMPLEXITY OF HUMAN MOTIVATIONS WHY DO THE CONSTITUTIONAL DECISIONS OF THE MODERN SUPREME COURT SO OFTEN VILIFY PUBLIC DECISION MAKING PERHAPS THE JUDICIARY'S NAMECALLING MERELY REFLECTS A GENERAL INCAPACITY IN OUR CULTURE FOR GENUINE MORAL DEBATE OR POSSIBLY THE JUSTICES' TERMINOLOGY IS A NATURAL BYPRODUCT OF THEIR IMMERSION IN AN EVER WIDER ARRAY OF VOLATILE POLITICAL ISSUES IT MAY BE TRACEABLE IN A PARADOXICAL WAY TO THE COURT'S POPULAR TRIUMPHS SUCH AS ITS 1954 SCHOOL DESEGREGATION DECISION AND ITS LATER HANDLING OF THE WATERGATE TAPES CRISIS WE HAVE COME TO EXPECT JUDGES TO PROTECT US FROM CATASTROPHES IF A HEROIC ROLE IS WHAT THE JUSTICES EXPECT OF THEMSELVES THEY WILL BE INCLINED TO JUSTIFY THEIR ACTIONS AS BEING NECESSARY TO PROTECT US FROM SOME LOOMING AND SINISTER THREAT WHATEVER THE CAUSE EVERY TIME THE SUPREME COURT USES HOSTILE AND EXAGGERATED TERMS TO INVALIDATE A PUBLIC DECISION IT INVITES BRIEFS OF THE SORT FILED IN THE AMENDMENT 2 LITIGATION THE RESULT IS THAT OUR LEGAL DISCOURSE IS INCREASINGLY CHARACTERIZED BY THE SAME INTOLERANCE AND NASTINESS THAT MARK THE LOWER DEPTHS OF POLITICAL DEBATE MR NAGEL IS A PROFESSOR AT THE UNIVERSITY OF COLORADO SCHOOL OF LAW 9302170125 930217 LAW LIFEANDDEATH MEDICAL CASES DRAG IN COURTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL SHERI DEXTER WAS DEAD BEFORE HER LAWSUIT SEEKING AN EXPENSIVE LEUKEMIA TREATMENT COULD BE RESOLVED AN UNSURPRISING RESULT LAWYERS SAY IN A COURT SYSTEM THAT IS PROVING TOO SLUGGISH TO DEAL EFFECTIVELY WITH SUCH DISPUTES HUNDREDS OF CASES SUCH AS MS DEXTER'S HAVE SPRUNG UP AROUND THE COUNTRY IN RECENT YEARS AS PATIENTS' NEEDS FOR EXPENSIVE CARE RUN FLUSH INTO INSURERS' COSTCUTTING EFFORTS THE LAWSUITS ARE OVER AN ARRAY OF COSTLY AND OFTEN UNPROVEN TREATMENTS FROM BONEMARROW AND ORGAN TRANSPLANTS TO NEW KINDS OF DRUGS THE CASES TROUBLE HEALTH SPECIALISTS WHO SAY THE COURT SYSTEM WITH ITS INVETERATE DELAYS AND LENGTHY APPEALS ISN'T CAPABLE OF RULING AS QUICKLY AS THESE LIFEANDDEATH DISPUTES REQUIRE AND THEY SAY THE ETHICAL AND POLICY DECISIONS INVOLVED SHOULD BE SETTLED BY PHYSICIANS AND PATIENTS BY SCIENTISTS OR BY LEGISLATORS BY ALMOST ANYONE IN SHORT OTHER THAN LAWYERS AND JUDGES IN MS DEXTER'S SUIT AS IN MANY OF THESE CASES NO ONE REALLY EMERGED A WINNER CITING THE IRREPARABLE HARM MS DEXTER WOULD SUFFER WITHOUT THE TREATMENT A 170000 BONEMARROW TRANSPLANT A LOWER COURT HAD ISSUED A PRETRIAL RULING REQUIRING ARIZONA'S MEDICAID PROGRAM TO FUND IT BUT BY THE TIME MS DEXTER RECEIVED THE TREATMENT HER CONDITION HAD WORSENED MS DEXTER'S LAWYER BELIEVES HER CLIENT MIGHT HAVE LIVED IF LITIGATION HADN'T DELAYED THE PROCEDURE CASES SUCH AS MS DEXTER'S OFTEN BECOME MOOT BECAUSE IN ISSUING PRETRIAL RULINGS JUDGES CAN WEIGH THE DEFENDANT'S ARGUMENTS AGAINST THE POTENTIAL HARM TO THE PLAINTIFF FROM DELAYING A RULING UNTIL TRIAL WHEN THAT HARM IS DEATH DEFENDANTS NEED AN UNUSUALLY STRONG CASE TO DEFEAT THE RULING THE COURTS REALLY ARE THE PLACE OF LAST RESORT FOR THESE ISSUES SAID ARTHUR CAPLAN A BIOETHICIST AT THE UNIVERSITY OF MINNESOTA THE JUDGES DON'T WANT THESE CASES HE SAID THE DOCTORS HATE TO GO THERE THE PATIENTS FIND IT FRUSTRATING INSURERS COMPLAIN THAT JUDGES IN THESE LAWSUITS ROUTINELY DISPENSE MORE SYMPATHY THAN JUSTICE IGNORING EXPLICIT LIMITATIONS IN INSURANCE CONTRACTS AND REQUIRING COVERAGE FOR TREATMENTS THAT THE CONTRACTS NEVER MEANT TO INCLUDE COURTS HAVE REALLY SIDESTEPPED REALITY AND PUT THEMSELVES IN AN ALICEINWONDERLAND WORLD OF WORDS MEANING WHAT THEY WANT THEM TO MEAN SAID MARY ADER ASSOCIATE GENERAL COUNSEL FOR THE BLUE CROSS & BLUE SHIELD ASSOCIATION IN CHICAGO IN A CONTROVERSIAL 1990 DECISION FOR EXAMPLE A NEW YORK STATE TRIAL JUDGE REQUIRED A HEALTH INSURER EMPIRE BLUE CROSS & BLUE SHIELD TO PAY FOR A BONEMARROW TRANSPLANT FOR A MAN WHO WAS INFECTED WITH THE HIV VIRUS WHICH CAUSES AIDS EMPIRE CLAIMED THE TRANSPLANT WAS EXPERIMENTAL HAVING BEEN USED FOR AIDS PATIENTS OY A HANDFUL OF TIMES THE AIDS PATIENT'S HEALTH INSURANCE LIKE MOST PRIVATE PLANS EXCLUDED COVERAGE FOR SERVICES WHICH ARE DEEMED EXPERIMENTAL OR INVESTIGATIVE BUT IN A WRITTEN OPINION JUDGE ELLIOTT WILK SUGGESTED THAT THE TREATMENT WASN'T EXPERIMENTAL WRITING THAT ALTHOUGH THE PROCEDURE WAS NEW FOR HIV PATIENTS IT HAD HAD SOME SUCCESS IN TREATING OTHER ILLNESSES SUCH AS BREAST CANCER THE HIV PATIENT HOWEVER HAD BECOME TOO ILL TO RECEIVE THE TREATMENT AND DIED A YEAR AFTER THE JUDGE'S RULING UNTIL THE 1970S RESOLVING SUCH QUESTIONS WASN'T TYPICALLY PART OF THE JOB DESCRIPTION FOR TRIAL JUDGES THEN EMERGED A SERIES OF PROMINENT CASES ASKING JUDGES TO DECIDE WHETHER THE FAMILIES OF CERTAIN COMATOSE PATIENTS COULD TERMINATE THEIR LIFESUPPORT LEGAL SPECIALISTS CONTEND THAT THOSE ISSUES MANY THEM NOW SETTLED WERE APPROPRIATELY THE PROVINCE OF JUDGES BECAUSE THEY INVOLVED TRADITIONAL QUESTIONS OF LAW SUCH AS INDIVIDUAL RIGHTS CONSENT AND THE STATE'S INTEREST IN PROTECTING LIFE THE CURRENT SLATE OF MEDICALTREATMENT CASES HOWEVER ARE BROUGHT MOSTLY BY PLAINTIFFS WHO SEEK TO RECEIVE RATHER THAN TURN DOWN COSTLY TREATMENTS AS A RESULT THE CASES OFTEN FOCUS ON SCIENTIFIC DEBATES ABOUT THE EFFICACY OF PARTICULAR THERAPIES DEBATES THAT FALL OUTSIDE OF MOST JUDGES' EXPERTISE LONG AGO THE PEOPLE WHO SIT ON THE BENCH AND DECIDE THE CASES DROPPED OUT OF ORGANIC CHEMISTRY SAID PROF CAPLAN THEY AREN'T ESPECIALLY COMFORTABLE WITH SCIENTIFIC ISSUES AND THE SCIENTISTS WHOM THE JUDGES RELY UPON AS EXPERT WITNESSES IN THESE CASES OFTEN AREN'T REALLY THE MOST FAITHFUL ALLIES OF THE TRUTH SAID UWE REINHARDT A PRINCETON UNIVERSITY HEALTH ECONOMIST IF YOU HOLD ENOUGH GREEN STUFF IN FRONT OF A SCIENTIST THE TRUTH GETS DEFLECTED DEFENDERS OF JUDICIAL INVOLVEMENT IN THE TREATMENT CASES COUNTER THAT MOST OF THE SUITS ARE CONTRACTINTERPRETATION DISPUTES OF THE KIND JUDGES ROUTINELY TACKLE I DON'T DECIDE WHETHER THE INSURANCE COMPANY OUGHT TO BE INSURING A PARTICULAR TREATMENT JUSTICE WILK SAID IN AN INTERVIEW MY DETERMINATION IS MADE ON THE CONTRACT SOME HEALTHCARE REFORM ADVOCATES ARE PUSHING FOR LEGISLATION THAT WOULD ESTABLISH NATIONAL GUIDELINES ON WHETHER PARTICULAR TREATMENTS ARE STANDARD OR EXPERIMENTAL SUCH GUIDELINES THEY HOPE WOULD MAKE COVERAGE DECISIONS MORE PREDICTABLE PERHAPS CURBING THE NUMBER OF DECISIONS THAT ARE CHALLENGED IN COURT 9302170124 930217 BIOTECHNOLOGY'S PRODUCT STATUS NEW YORK BIOTECHNOLOGY GENERAL CORP SAID ITS RECOMBINANT HUMAN GROWTH HORMONE WAS GIVEN ORPHAN DRUG DESIGNATION BY THE FOOD AND DRUG ADMINISTRATION FOR THE TREATMENT OF CACHEXIA OR WASTING SYNDROME IN PEOPLE WITH AIDS BIOTECHNOLOGY SAID ITS PILOT CLINICAL STUDIES SHOW THE HORMONE SAFELY AND EFFECTIVELY PROMOTES PROTEIN SYNTHESIS AND REVERSES WASTING CACHEXIA CAUSES SEVERE WEIGHT LOSS WHICH DAMAGES THE IMMUNE SYSTEM LEAVING AIDS PATIENTS MORE SUSCEPTIBLE TO OFTENFATAL OPPORTUNISTIC DISEASES ORPHAN DRUG DESIGNATION POSITIONS THE COMPANY TO EVENTUALLY SEEK ORPHAN DRUG STATUS WHICH WOULD GIVE BIOTECHNOLOGY EXCLUSIVE MARKETING RIGHTS FOR THE TREATMENT FOR SEVEN YEARS 9302170122 930217 LEISURE & ARTS BOOKSHELF A MAN OF TWO HERITAGES BY VIRGINIA I POSTREL RICHARD RODRIGUEZ IS AN AMERICAN SACRAMENTOBORN UNLIKE THE MANY IMMIGRANTS FOREIGN AND DOMESTIC WHO PEOPLE CALIFORNIA I WAS BORN AT THE DESTINATION HE WRITES IN DAYS OF OBLIGATION AN ARGUMENT WITH MY MEXICAN FATHER VIKING 230 PAGES 21 HIS PARENTS WERE FROM MEXICO HIS UNCLE FROM INDIA HIS TEACHERNUNS FROM IRELAND BUT RICHARD RODRIGUEZ THE BOY EMBRACED CALIFORNIA THE LAND OF NEW BEGINNINGS AS A CHILD IN THE 1950S HE WRITES I CRAVED ALLNEW AND ALLELECTRIC FREE MUGS AND KOOL INSIDE AND DOUBLE GREEN STAMPS NO MONEY DOWN WHILEUWAIT ALL YOU CAN EAT AT A COFFEE SHOP OPEN 24 HOURS 365 DAYS A YEAR I APPROVED THE SWIPE OF THE WAITRESS'S RAG WHICH COULD ERASE HISTORY ERASING THE PAST IS THE CALIFORNIA DREAM A DREAM MR RODRIGUEZ HAS ABANDONED AT MIDDLE AGE HE HAS SEEN THE NEW LEFT DESTROY LIBERAL IDEALS AND AIDS DESTROY HIS FRIENDS' SAN FRANCISCO PARADISE AND HE HAS INHERITED HIS FATHER'S TRAGIC SENSE OF LIFE MY FATHER REMAINS MEXICAN IN CALIFORNIA MY FATHER LIVES UNDER THE DOCTRINE UNDER THE VERY TREE OF ORIGINAL SIN MUCH IN LIFE IS FAILURE OF COMPROMISE LIKE FATHER LIKE SON MR RODRIGUEZ IS KNOWN AS A MEXICANAMERICAN WRITER WHO REJECTS BILINGUALISM AND AFFIRMATIVE ACTION A DECADE AGO HE WAS A PROMISING LITERARY CRITIC WHO REFUSED THE ACADEMIC LIFE BECAUSE UNIVERSITIES WANTED HIM TO FILL THEIR QUOTAS HIS PREVIOUS BOOK HUNGER OF MEMORY DEFENDED INDEED URGED THE TEACHING OF ENGLISH TO THE CHILDREN OF IMMIGRANTS WITH HIS PASSION FOR THE COMMON CULTURE MR RODRIGUEZ IS STILL NO FRIEND TO THE POLITICALLY CORRECT IF I AM A NEWCOMER TO YOUR COUNTRY WHY TEACH ME ABOUT MY ANCESTORS TEACH ME ABOUT COWBOYS AND INDIANS I SHOULD KNOW THAT TRAGEDIES CREATED THE COUNTRY THAT WILL CREATE ME HE WRITES AND LATER HE SAYS HISPANICS AND ASIANS HAVE BECOME THE CONVENIENT NATIONAL EXCUSE FOR THE ACCOMPLISHMENT OF WHAT AMERICA HAS ALWAYS WANTED DONETHE SEVERING OF MEMORY THE DISMANTLEMENT OF NATIONAL CULTURE THE END OF HISTORY MR RODRIGUEZ BELIEVES THAT AMERICA'S PROTESTANT FATHERS BEQUEATHED TO US AN ESSENTIAL OPTIMISM A BELIEF IN THE INDIVIDUAL PILGRIM'S PROGRESS TOWARD THE FUTURE MEXICO BY CONTRAST INHERITED THE CATHOLIC CULTURE OF TRAGEDY COMMUNITY HISTORY AS REPETITION LIKE MOST DICHOTOMIES THIS ONE CAN'T BE TAKEN TOO LITERALLY THE PURITANS ALSO BELIEVED IN SUCH TRAGIC CONCEPTS AS TOTAL DEPRAVITY AND LIMITED ATONEMENT BUT AS A CULTURAL SYMBOL IT CAPTURES SOME ESSENTIAL TRUTHS IN THESE BEAUTIFULLY WRITTEN BUT OFTEN ELUSIVE ESSAYS MR RODRIGUEZ SEEKS TO RECONCILE HIS TWO HERITAGES WITHOUT REACHING A SATISFACTORY CONCLUSION I BELIEVE THE BEST RESOLUTION TO THE DEBATE BETWEEN COMEDY AND TRAGEDY IS IRRESOLUTION THE RESULT IS A MADDENINGLY AMBIVALENT BOOK BUT ONE THAT IS TRUER THAN A SIMPLE CHOICE WOULD PRODUCE LIFE IS NOT COMEDY OR TRAGEDY BUT BOTH IT FALLS INTO THAT THIRD SHAKESPEAREAN CATEGORY HISTORY CALIFORNIA AND MEXICO PROTESTANT AND CATHOLIC COMEDY AND TRAGEDY CANNOT REMAIN APART FROM HIS NEPHEW'S BLOND HAIR AND DARK EYES TO A MISSION CHURCH WITH AN ARABIC DOME MR RODRIGUEZ SEES CULTURAL SYNTHESIS EVERYWHERE WHEN HE LOOKS IN THE MIRROR HE KNOWS THE INDIANS ARE NOT DEAD IT IS AN OBVIOUS INSIGHT AS PLAIN AS THE NOSE ON HIS FACE THE HISPANIC WRITER IS THE DESCENDANT OF INDIANS I TAKE IT AS AN INDIAN ACHIEVEMENT THAT I AM ALIVE THAT I AM CATHOLIC THAT I SPEAK ENGLISH THAT I AM AN AMERICAN MY LIFE BEGAN IT DID NOT END IN THE SIXTEENTH CENTURY THE FUTURE ISN'T MULTICULTURAL BUT ALL MIXED UP HE SUGGESTS WRITING MEXICO CITY IS THE CAPITAL OF MODERNITY FOR IN THE SIXTEENTH CENTURY UNDER THE PATRONAGE OF THE QUEEN OF HEAVEN MEXICO INITIATED THE TASK OF THE TWENTYFIRST CENTURY THE RENEWAL OF THE OLD THE KNOWN WORLD THROUGH MISCEGENATION TODAY CAPITALISM UNITES NORTH AND SOUTH GIVING STILL IMPOVERISHED TIJUANA THE COMIC OPTIMISM OF MR RODRIGUEZ'S CHILDHOOD SACRAMENTO VISITING A TIJUANA SUPERMARKET HE WRITES COMMERCIAL IS BIGGER MORE CROWDED HAPPIER MORE PRODIGIOUSLY STOCKED THAN ANY SUPERMARKET I HAVE SEEN THERE ARE CEILINGHIGH PYRAMIDS OF SIXPACKS EIGHTPACKS ECONOPACKS SUPERSAVERS BOXES OF DETERGENTS AND BAGS OF METALLICLOOKING CANDIES AND PACKAGES OF TOILET PAPER COME IN GIGANTIC MEXICAN FAMILY' SIZES NEVER SEEN IN AMERICA THERE ARE LUXURIES CONVENIENCES NECESSITIES EVERYTHING EVERYTHING DESPITE HIS GROWNUP SENSE OF LIMITS MR RODRIGUEZ RETAINS A MEASURE OF OPTIMISM WRITING RECENTLY IN THE LOS ANGELES CITY MAGAZINE BUZZ HE FORESAW A HOPEFUL FUTURE FOR A LOS ANGELES THAT HAS SHED ITS INNOCENCE IF ANY AMERICAN CITY CAN HEAL THE RACIAL DIVISION OF AMERICA IF ANY CITY CAN TEACH US WHAT A MULTICULTURAL AMERICA WILL LOOK LIKE I THINK LA WILL BE THAT CITY MS POSTREL IS EDITOR OF REASON MAGAZINE IN LOS ANGELES 9302170121 930217 GM TO BACK OFF ITS DECISION TO STOP NONDEALER LOANS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID IT IS BACKING OFF ITS DECISION LAST YEAR TO STOP MAKING LOANS TO NONGM DEALERSHIPS BY FEB 28 BECAUSE OF THE CAR MAKER'S IMPROVED FINANCIAL SITUATION IN NOVEMBER GM SAID IT WOULD BE FORCED TO PHASE OUT 6 BILLION IN PROFITABLE LOANS TO NONGM DEALERSHIPS OPERATED BY GM DEALERS AND TO CUSTOMERS WHO BUY COMPETING BRANDS AT SUCH DEALERSHIPS GM HAS SINCE CARRIED OUT ITS PLEDGE TO STOP WRITING CAR LOANS FOR INDIVIDUAL CUSTOMERS BUYING COMPETING BRANDS HOWEVER GM SAID YESTERDAY IT WILL CONTINUE MAKING LOANS TO NONGM DEALERSHIPS AT LEAST UNTIL JULY 31 AND VERY LIKELY BEYOND THAT GM CURRENTLY HAS 31 BILLION IN LOANS USED BY DEALERS TO FINANCE THEIR NEW CAR INVENTORY IN NOVEMBER WHEN GM ANNOUNCED ITS DECISION TO BACK OUT OF THESE DEALER LOANS THE COMPANY WAS JUST A WEEK FROM LOSING ITS PRIME RATING FOR COMMERCIAL PAPER FROM RATING AGENCY MOODY'S INVESTORS SERVICES INC HOWEVER DESPITE THE LOSS OF THE TOP RATING A GM SPOKESWOMAN SAID THE COMPANY HAS BEEN SUCCESSFUL AT ISSUING SHORTTERM DEBT AT FAVORABLE INTEREST RATES THE COMPANY CURRENTLY IS PAYING AN INTEREST RATE OF ABOUT 35 ON ITS 16 BILLION IN COMMERCIAL PAPER SHE SAID BEFORE ITS RATING DOWNGRADE THE COMPANY HAD 20 BILLION IN COMMERCIAL PAPER AND PAID AN AVERAGE RATE OF 4 IN ADDITION GM SAID ITS DECISION WAS AFFECTED BY ITS IMPROVED OPERATING RESULTS IN THE FOURTH QUARTER WHICH WERE HELPING FIRM UP THE COMPANY'S BORROWING BASE 9302170120 930217 COCACOLA ORANGE JUICE PRICES ATLANTA COCACOLA FOODS SAID IT HAS REDUCED THE WHOLESALE LIST PRICES FOR MINUTE MAID ORANGE JUICE PRODUCTS BY 7 TO 10 THE COMPANY A UNIT OF COCACOLA CO CITED AN ABUNDANT ORANGE CROP AS THE REASON FOR THE PRICE REDUCTIONS 9302170119 930217 THERMAL INDUSTRIES BUYOUT PITTSBURGH WINDOW MAKER THERMAL INDUSTRIES INC SAID IT AGREED TO BE ACQUIRED BY JELDWEN INC A PRIVATELY HELD KLAMATH FALLS ORE BUILDING PRODUCTS MAKER FOR 152 MILLION UNDER A NONBINDING LETTER OF INTENT THERMAL'S TWO MAJOR STOCKHOLDERS CHAIRMAN DAVID H WEIS AND TREASURER ERIC RASCOE WOULD RECEIVE 775 A SHARE IN CASH FOR THEIR 64 STAKE THE OTHER SHAREHOLDERS WOULD GET 8 A SHARE THERMAL HAS ABOUT 194 MILLION SHARES OUTSTANDING THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT THE TARGETED CLOSING DATE FOR THE TRANSACTION IS JUNE 1 9302170118 930217 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COMVERSE TECHNOLOGY AN OFFERING OF 33 MILLION SHARES OF COMMON STOCK VIA LEHMAN BROTHERS AND SALOMON BROTHERS GENTA INC AN OFFERING OF 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES WCT COMMUNICATIONS INC AN OFFERING OF 32 MILLION SHARES OF COMMON STOCK VIA OPPENHEIMER & CO INC AND SUTRO & CO INC ZENIX INCOME FUND INC AN OFFERING OF 30 MILLION OF PREFERRED STOCK 9302170117 930217 BREWERS AIM TO TAP YOUNGER DRINKERS AND WOMEN BY ROLLING OUT CLEAR BEERS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL CLEAR BEER IS THE BREWING INDUSTRY'S LATEST INFATUATION BUT THE NEWFANGLED NOTION FACES A CLOUDY FUTURE SEVERAL BEER MAKERS JOLTED BY A DROP IN SHIPMENTS LAST YEAR ARE DEVELOPING CLEAR BREWS AS A WAY TO LURE NEW DRINKERS TO THE BAR NEARLY 85 OF ALL BEER IS GUZZLED BY MEN SO BREWERS ARE PREPARING CLEAR FORMULAS IN A TRANSPARENT ATTEMPT TO APPEAL TO MORE WOMEN AND YOUNGER CONSUMERS THAT BOTHERS SOME INDUSTRY WATCHERS IT IS PART OF AN AGGRESSIVE ATTEMPT TO RECRUIT YOUNGER DRINKERS CHARGES CHRISTINE LUBINSKI DIRECTOR OF PUBLIC POLICY FOR THE NATIONAL COUNCIL ON ALCOHOLISM AND DRUG DEPENDENCE IN WASHINGTON THE CLEAR BEERS ARE DESIGNED TO COMPETE WITH THE SOFTDRINK MARKET BREWERS HOWEVER FLATLY DENY THE NEW PRODUCTS ARE AIMED AT UNDERAGE DRINKERS COORS BREWING CO LAST FALL INTRODUCED A CLEAR MALT BEVERAGE CALLED ZIMA IN THREE TEST MARKETS WHERE THE COMPANY SAYS IT IS FARING WELL THE COMPANY PLANS TO EXPAND THE TEST TO 40 MORE CITIES MILLER BREWING CO A PHILIP MORRIS COS SUBSIDIARY IS TELLING SOME RETAILERS TO EXPECT SHIPMENTS OF A CLEAR BEER IN SEVERAL MONTHS STROH BREWERY CO SAYS IT IS STUDYING THE IDEA BEVERAGE CONSULTANTS SAY NO 1 BREWER ANHEUSERBUSCH COS IS CONSIDERING CLEAR SUDS TOO THE COMPANY DECLINES TO COMMENT CERTAINLY THE BREWING INDUSTRY AND MILLER IN PARTICULAR NEEDS A NEW WAY TO EXCITE BEER DRINKERS MILLER'S PROFITS PLUNGED 14 AND SALES SLIPPED 2 LAST YEAR SHIPMENTS OF MILLER LITE MILWAUKEE'S BEST AND MILLER HIGH LIFE ALL FELL LAST YEAR AND AMONG THE COMPANY'S TOP BRANDS ONLY MILLER GENUINE DRAFT POSTED AN INCREASE CLEARNESS IS A HOT PRODUCT TREND HITTING EVERYTHING FROM COLAS TO DEODORANTS BUT MANY RETAILERS AND BEVERAGE EXPERTS ARE SKEPTICAL THAT IT WILL BOOST BEER THEY SAY BREWERS' RUSH TO CLEAR BEER MAY BE A GLARING EXAMPLE OF A GOOD MARKETING NOTION RUN AMOK THEY ARGUE THAT CONSUMERS AND RETAILERS ARE HARDLY CLAMORING FOR A COLORLESS CONCOCTION IT IS ABSOLUTELY FOREIGN TO THE WHOLE CONCEPT OF BEER SAYS ROBERT PILE A BEERDRINKING ADVERTISING EXECUTIVE IN MINNEAPOLIS GRAIN IS ESSENTIAL TO BEER AND YOU THINK OF GRAIN AS VARIOUS SHADES OF GOLDEN THE IMAGERY CONJURED UP BY A TRANSPARENT BEER IS HARDLY THE STUFF OF A TRADITIONAL BEER COMMERCIAL HE SAYS UNAPPEALING FLAT TASTELESS WEAK EVEN SOME BREWERS ADMIT THE NOTION IS A LITTLE FARFETCHED I HAVE NOT RECEIVED ONE REQUEST FROM OUR DISTRIBUTION NETWORK SAYS RICHARD MCMAHON PRESIDENT OF MINNESOTA BREWING CO A SMALL BREWERY IN ST PAUL DESPITE WIDESPREAD PUBLICITY IN BREWING CIRCLES THE LIQUOR STORES AREN'T GETTING ANY CALLS FOR IT HE ADDS THOUGH CLEAR PRODUCTS APPEAL TO YOUNG PEOPLE NEWPRODUCT SPECIALISTS SAY BREWERS MAY BE MOVING TOO SLOWLY TO ATTRACT THE ATTENTION OF THE YOUNG AND TRENDY IT IS STARTING TO BECOME OLD HAT TO DO A CLEAR PRODUCT SAYS DOUG HALL PRESIDENT OF RICHARD SAUNDERS INTERNATIONAL A CINCINNATI FIRM THAT EVALUATES CONSUMERS' RESPONSES TO NEW PRODUCTS WE'VE SEEN A HUGE DROP IN POSITIVE REACTIONS OF CONSUMERS TO CLEAR VERSIONS OF PRODUCTS HE ADDS CLEAR BEER'S OUTLOOK MAY GET NO BETTER ONCE GUZZLERS LEARN HOW THE STUFF IS MADE IT AMOUNTS TO AN UNAPPETIZING PROCESS THAT STRIPS THE DRINK OF ITS ESSENCE YOU DUMP A BAG OF BLACK POWDER INTO A TANK OF BEER SAYS JOSEPH OWADES A BREWING SPECIALIST IN SAN FRANCISCO THE CHARCOAL POWDER IS THEN FILTERED OUT REMOVING WITH IT THE COLOR AND MUCH OF THE TASTE AS WELL BREWERS MUST THEN RESTORE FLAVOR COORS SAYS CONSUMERS REPORT ITS ZIMA PRODUCT IS MORE AKIN IN TASTE TO A GIN AND TONIC THAN TO A BEER BUT INDUSTRY EXECUTIVES SAY MILLER'S CLEAR OFFERING IS EXPECTED TO HAVE MORE OF A BEER FLAVOR FOR ALL THE OBSTACLES OBSCURING A CLEAR PATH FOR CLEAR BEER ONE THING CAN BE SEEN IN THE NEW EFFORTS THE IMMENSE PRESSURE ON MARKETERS TO MATCH EVERY MOVE MADE BY A RIVAL IF THE HEAD SHEEP DOESN'T KNOW WHERE IT IS GOING IT LEADS THE REST TO SLAUGHTER WARNS MR HALL THE NEWPRODUCT CONSULTANT LIQUOR MERCHANTS RECALL WITH A SHUDDER A CLEAR WHISKEY FROST 880 THAT BROWNFORMAN CORP SOLD BRIEFLY MORE THAN A DECADE AGO IT GOT A CHILLY RECEPTION AND QUICKLY TOOK A DIVE RECALLS JOE SURDYK PRESIDENT OF SURDYK'S LIQUORS IN MINNEAPOLIS SUCH PAST FAILURES MEAN LITTLE HOWEVER IN THE CURRENT FRENZY TO INTRODUCE SEETHROUGH SPIRITS IN ONE OF THE STRANGER CASES YET E & J GALLO WINERY IS TESTING A TRANSPARENT BRANDY THOUGH IT IS BILLED AS A HORSE OF A DIFFERENT COLOR E & J WHITE 9302170116 930217 BONDFUND ASSETS TOP MONEY MARKETS FOR FIRST TIME BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS SCRAMBLING TO SNATCH HIGHER RETURNS HAVE FOR THE FIRST TIME PUSHED THE TOTAL AMOUNT OF MONEY IN BOND MUTUAL FUNDS ABOVE THE TOTAL IN MONEYMARKET FUNDS INVESTORS NOW HAVE 578 BILLION IN BONDFUND ASSETS ECLIPSING THE 548 BILLION IN MONEYMARKET FUNDS ACCORDING TO AN INVESTOR ACTIVITY REPORT PREPARED BY THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP IN THE PAST YEAR ALONE BONDFUND ASSETS JUMPED 31 WHILE MONEYFUND ASSETS REMAINED ESSENTIALLY FLAT THOUGH THE BRISK SALES OF STOCK FUNDS HAVE SNARED MANY OF THE HEADLINES IN RECENT MONTHS INDIVIDUALS HAVE SHOWN AN EVEN GREATER PROPENSITY TO SHIFT INTO BOND FUNDS SAYS JEFFREY SCHAEFER THE TRADE GROUP'S RESEARCH CHIEF BUT THE POWERFUL PUSH INTO BOND FUNDS ALSO COMES WITH SIGNIFICANT RISKS FOR INVESTORS SOME BONDFUND INVESTORS NOW GET MORE THAN TWICE THE ROUGHLY 3 YIELD OFFERED BY MANY MONEY FUNDS YET THE PRICES OF BOND FUNDS GYRATE WITH CHANGES IN INTEREST RATES UNLIKE THE STABLE PRINCIPAL VALUE OF MONEY FUNDS ANY SURGE IN INTEREST RATES WOULD HAMMER THE VALUE OF BOND FUNDS A LESSON LEARNED THE HARD WAY BY MANY INVESTORS DURING 1987'S RATE JUMP THEN YOU HAD A LOT OF PEOPLE IN BONDFUNDS WITHOUT QUITE UNDERSTANDING WHAT THEY WERE BUYING SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES A NEW YORK CONSULTING FIRM THAT'S HAPPENING AGAIN SOME BROKERAGE FIRMS KEEP THEIR FINGERS CROSSED THAT THEY'RE GETTING THAT MESSAGE ACROSS TO THEIR CUSTOMERS WE PREACH IT ALL THE TIME BUT WE JUST PRAY THE BROKER IS MAKING SURE THE CUSTOMER UNDERSTANDS THE DIFFERENCE BETWEEN BOND FUNDS AND MONEY FUNDS SAYS RAYMOND CHIP MASON CHAIRMAN OF LEGG MASON INC A BALTIMOREBASED BROKERAGE FIRM THE STAKES FOR WALL STREET ARE HIGH BROKERAGE FIRMS KNOW THAT A BIG DROP IN BOND FUND VALUES COULD ALIENATE INVESTORS WHO HAVE ONLY RECENTLY RECOVERED FROM THE STOCK AND BONDMARKET SHOCKS OF 1987 BROKERS HAVE GOT A REAL RISK IN THIS BECAUSE IF IT DOESN'T WORK IT'S THEIR CUSTOMERS AND THEIR CUSTOMER ASSETS THEY'RE PLAYING WITH MR MASON SAYS MUCH OF THE MONEY HAS FLOWED INTO TAXFREE LONGTERM MUNICIPAL BOND FUNDS AS INVESTORS BRACE FOR TAX INCREASES BY THE CLINTON ADMINISTRATION BUT MANY INVESTORS ALSO ARE OPTING FOR TAXABLE INTERMEDIATEBOND FUNDS WITH A PORTFOLIO OF BONDS MATURING IN ABOUT SEVEN YEARS OR SO THESE FUNDS TYPICALLY ARE LESS VOLATILE AND POTENTIALLY LESS LUCRATIVE THAN LONGERTERM BOND FUNDS PEOPLE ARE AFRAID TO GO OUT TOO LONG IN BOND MATURITIES FOR FEAR THAT IF THE MARKET FLIPS ON THEM THEY'VE GOTTEN THEMSELVES IN A BOX MR MASON SAYS SO FAR INVESTORS HAVE BENEFITED FROM THEIR SHIFT INTO BOND FUNDS IN 1992 TAXABLE BOND FUNDS AVERAGED A TOTAL RETURNPRICE CHANGE PLUS INTEREST INCOME OF 78 MORE THAN DOUBLE THE 34 FOR TAXABLE MONEYMARKET FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES INC GENERAL STOCK FUNDS HAD AN AVERAGE 1992 TOTAL RETURN OF 89 SOME BROKERAGE FIRM EXECUTIVES SUGGEST THAT WARY INVESTORS TIPTOEING INTO THE BOND MARKET OPT FOR MUTUAL FUNDS WHICH TYPICALLY HOLD A WIDE RANGE OF ISSUES AS OPPOSED TO INDIVIDUAL BONDS MOST FUNDS HAVE A STAGGERED PORTFOLIO OF BONDS MAKING THEM LESS VOLATILE THAN INDIVIDUAL ISSUES SAYS DONALD MARRON CHAIRMAN OF PAINEWEBBER GROUP INC 9302170115 930217 LEISURE & ARTS CRITIQUE OLD WORLD LOOFAS RUB US THE RIGHT WAY BY RAYMOND SOKOLOV NEW YORK HERE IN THE NEW WORLD THERE'S A LOT OF LOOSE TALK ON CAMPUS ABOUT ENDING THE CULTURAL HEGEMONY OF DEAD EUROPEAN WHITE MALES DEWMS DOOMS THESE NEODEMONS INCLUDE SHAKESPEARE AND GOETHE AND GOYA NEVERTHELESS DEWMSDAY IS NOT AT HAND SHAKESPEARE IS STILL PERFORMED IN CENTRAL PARK AND NO ONE IS BURNING THE LIBRARY OF CONGRESS NOT YET IN THE LIBRARY'S RENOVATED GREAT HALL TREASURES FROM THE VATICAN LIBRARY HAVE BEEN ON VIEW MAKING A SILENT BUT PEERLESSLY ELOQUENT STATEMENT IN FAVOR OF THE SHARED ATLANTIC CULTURAL HERITAGE SIMILARLY OUR CONCERT HALLS AND OPERA HOUSES ARE MUSEUMS OF THE EUROPEAN 19TH CENTURY IT IS STILL NEWS WHEN A NATIVEBORN AMERICAN GETS HIRED TO CONDUCT AN AMERICAN SYMPHONY ORCHESTRA OUR IDEAS OF CHIC STILL ARRIVE ON THE CONCORDE AND ARE DISSEMINATED IN FASHION MAGAZINES EDITED BY BRITISH WOMEN EVEN THE NEW YORKER MAGAZINE IS NOW EDITED BY A BRITISH WOMAN WHO PREVIOUSLY BREATHED LIFE INTO VANITY FAIR PERHAPS FROM THE PERSPECTIVE OF DOOMBAITING UNIVERSITY CULTURAL RADICALS THE RISE OF THESE LIVING EUROPEAN WHITE FEMALES LEWFS LOOFAS IS A FORM OF PROGRESS HOWEVER LIMITED IT MIGHT SEEM STRANGE AT FIRST TO THINK OF TINA BROWN AS THE OPENING WEDGE OF THE ULTIMATE TRIUMPH OF ADVANCED THOUGHT AT THE NEW YORKER BUT IT GOT EASIER FOR ME TO SEE THIS AFTER A RECENT CONVERSATION WITH A LONGTIME STAFFER WHO HAD JUST RESIGNED FROM THE MAGAZINE IN DISGUST HE SAID HE'D BEEN HORRIFIED TO HEAR THAT MS BROWN WAS STRESSING TIMELINESS PUTTING IT OUT FAST IT DIDN'T MATTER TO THIS MAN THAT THE NEW YORKER SEEMED TO HAVE SPRUNG BACK TO LIFE UNDER ITS NEW LEADER OR THAT PEOPLE WERE ONCE AGAIN TALKING ABOUT ARTICLES THEY HAD ACTUALLY READ IN IT WHAT MATTERED TO THIS LOYALIST TO THE ANCIEN REGIME WAS THE ELEGANTLY DELIBERATE PACE OF THE OLD EDITORIAL PROCESS AS OVERSEEN BY THE TWO PREVIOUS EDITORS WILLIAM SHAWN AND ROBERT GOTTLIEB THE MAGAZINE'S LIMPNESS UNDER THOSE WORTHIES DIDN'T MATTER TO THIS WRITER TAKING HIM AS REPRESENTATIVE OF THE OLD PRELOOFA ORDER IT WAS EASY TO SEE THE CURRENT BROWNIAN COMMOTION AS A TRIUMPH OVER INBRED ENERVATION STILL THE HEGEMONY OF THE NOUVELLE LOOFAS DOES MAKE US NEW WORLDERS ANXIOUS AT LEAST AS ANXIOUS AS THE THREAT OF US CULTURAL IMPERIALISM IN THE FORM OF DALLAS AND OTHER AMERICAN POP ENTERTAINMENT HAS MADE FRENCH MINISTER OF CULTURE JACK LANG OR THE FRENCH FILM GROUP THAT HAS DECIDED TO PREVENT NONFRENCH PICTURES FROM WINNING THE CESAR BUT IN OUR DEFENSE WE CAN SAY THAT OUR SENSITIVITY DERIVES FROM A HISTORY OF REAL COLONIALISM NOT SOME SYMBOLIC FORM OF IT EXPRESSED THROUGH TELEVISION SERIES THAT CAN BE ELIMINATED BY THE PUSH OF A BUTTON INDEED FOR SOME NEW WORLDERS TRUE COLONIALISM IS STILL A FACT OF LIFE ALTHOUGH THEY ARE TECHNICALLY FULLFLEDGED DEPARTMENTS OF FRANCE MARTINIQUE GUADELOUPE AND FRENCH GUIANA ARE STILL DE FACTO COLONIES OF THEIR TRADITIONAL EUROPEAN METROPOLIS AND THE CHIEF INJURY CAUSED BY THESE LINGERING RELATIONSHIPS IS TO NATIVE CULTURE ESPECIALLY IN FRENCH GUIANA THE PLIGHT OF INDIGENOUS TRIBAL PEOPLE AND OF THE DESCENDANTS OF RENEGADE BLACK SLAVES IS A CLASSIC CASE OF THE ERASURE OF TRADITIONAL LIFE BY CONTACT WITH A MORE POWERFUL INTERLOPING CIVILIZATION THE PROCESS HAD BEGUN LONG BEFORE I GOT TO THE RAFFISH DEPARTMENTAL CAPITAL OF CAYENNE IN 1974 IT WAS ROUTINELY POSSIBLE THEN TO TAKE A BOAT TRIP INTO THE INTERIOR AND GAWK AT TOPLESS VILLAGE WOMEN WHILE EUROPE'S SPACE STATION AT KOUROU ON THE CARIBBEAN COAST WAS UNDER CONSTRUCTION AT THE TIME THE CONTRAST OF PRIMITIVE AND ADVANCED CULTURES WAS UNNERVING BUT IT WAS STILL POSSIBLE TO BELIEVE THAT THE FUNDAMENTAL ISOLATION OF THE PLACE WOULD KEEP IT MORE OR LESS AS IT WAS TWO DECADES LATER HOWEVER PARIS HAS COME TO MARIPASOULA ONCE A BARELY ELECTRIFIED OUTPOST AS RICHARD AND SALLY PRICE DESCRIBE IT IN THEIR ACUTELY OBSERVED NEW BOOK EQUATORIA ROUTLEDGE TRADITIONAL CULTURE IN MARIPASOULA IS ON ITS LAST LEGS AT THE FRIDAY EVENING DANSI NOT A WRAPSKIRT IN SIGHT AND IT WOULD CLEARLY HAVE BEEN INAPPROPRIATE TO WEAR ONE WOMEN IN GLITTERY SEQUINED DRESSES IN COMPLEX FRENCH DRESSMAKING EXTRAVAGANZAS MANY IN HIGH HEELS ALL IN ELABORATELY BRAIDED OR CAREFULLY STRAIGHTENED HAIRDOS PASSIVE SPECTATORS ON SHORE USED CAMERAS AND VIDEO CAMSA RECENT TOKEN OF ALUKU CONSPICUOUS CONSUMPTION THE PRICES USBORN ETHNOGRAPHERS WERE HIRED BY THE FRENCH GOVERNMENT TO COLLECT INDIGENOUS CARVINGS AND OTHER ARTWORK FOR A MUSEUM IN CAYENNE THEY EXPRESS GREAT DUBIETY ABOUT THEIR ROLE BUT THEY CONCLUDE THAT THE HEYDAY OF GUIANESE CRAFT IS OVER AND THAT BEFORE LONG THE ONLY PIECES LEFT FROM A REMARKABLE TRADITION THAT WON'T HAVE BEEN CARRIED OFF AS SOUVENIRS TO METROPOLITAN FRANCE WILL BE IN MUSEUMS OR PRIVATE COLLECTIONS SOME DAY SOON THE ONLY PLACE ALUKUS WILL BE ABLE TO SEE UNDEGRADED EXAMPLES OF THEIR HERITAGE WILL BE IN MUSEUMS SATELLITE DOWNLINKS ALREADY BRING THEM VISIONS OF NORTH AMERICAN MODERN LIFE WITH BARELY A MENTION OF VOLTAIRE OR EVEN ROUSSEAU TRISTES TROPIQUES INDEED 9302170114 930217 FOREIGNERS WILL SPURN CANADIAN BONDS UNLESS DEBT LOAD EASES ECONOMISTS SAY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA A GROUP OF PROMINENT CANADIAN ECONOMISTS WARNED THAT FOREIGN INVESTORS WILL SPURN CANADIAN BONDS IF THE COUNTRY DOESN'T CURB ITS MOUNTING DEBT CANADA RELIES HEAVILY ON FOREIGN FUNDS TO FINANCE THE DEFICITS OF ITS FEDERAL AND PROVINCIAL GOVERNMENTS THE COMBINED DEFICIT OF THE FEDERAL AND PROVINCIAL GOVERNMENTS THIS YEAR IS EXPECTED TO TOTAL ABOUT 58 BILLION CANADIAN DOLLARS US462 BILLION OR 84 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF ITS OUTPUT OF GOODS AND SERVICES THE ECONOMISTS WHO REPRESENTED SOME OF CANADA'S MAJOR FINANCIAL INSTITUTIONS SAID THE COUNTRY IS NOW ON THE THRESHOLD OF A FISCAL CRISIS BECAUSE OF ITS RAPIDLY GROWING DEBT FEDERAL AND PROVINCIAL BUDGET DEFICITS OVER THE YEARS HAVE BUILT UP A DEBT THAT NOW TOTALS C665 BILLION OR 96 OF ANNUAL GDP CANADA ALREADY IS PAYING A STIFF PREMIUM IN FINANCIAL MARKETS BECAUSE OF INVESTOR CONCERN OVER THE DEBT BURDEN THE FEDERAL GOVERNMENT'S THREEMONTH TREASURY BILLS YESTERDAY YIELDED 604 ABOUT TWICE THE YIELD OF COMPARABLE US BILLS SOME PROVINCES INCLUDING SASKATCHEWAN REPORT FEWER INSTITUTIONS WILL NOW BUY THEIR BONDS BECAUSE THEIR DEBT BURDENS HAVE PROMPTED CUTS IN THEIR DEBT RATINGS FOREIGN INVESTORS HOLD ABOUT 25 OF FEDERAL GOVERNMENT BONDS AND ABOUT 40 OF PROVINCIAL GOVERNMENT BONDS PETER NICHOLSON SENIOR VICE PRESIDENT AT THE BANK OF NOVA SCOTIA SAID FOREIGN MARKETS HAVE A LIMITED TOLERANCE FOR CANADIAN DEBT AND I WOULD SUGGEST THAT THIS LIMIT IS LIKELY TO BE REACHED RATHER SUDDENLY AND WITHOUT A LOT OF WARNING HE SAID CANADA GOT A WARNING IN OCTOBER WHEN STANDARD & POOR'S CORP DOWNGRADED ITS RATING ON CANADIAN GOVERNMENT LONGTERM FOREIGN CURRENCY DEBT TO DOUBLEAPLUS FROM TRIPLEA PRIME MINISTER BRIAN MULRONEY'S PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT HAS CURBED SPENDING AND BOOSTED TAXES BUT HASN'T MANAGED TO NARROW THE DEFICIT SIGNIFICANTLY BECAUSE OF THE HEAVY INTEREST COSTS OF THE DEBT OUTSTANDING A RECENT OPINION POLL REPORTED THAT ONLY 11 OF CANADIANS CONSIDERED THAT THE GOVERNMENT SHOULD GIVE MOST OF ITS ATTENTION TO THE DEFICIT FINANCE MINISTER DON MAZANKOWSKI SAID YESTERDAY THAT THE GOVERNMENT EXPECTS THE FEDERAL DEFICIT TO NARROW AS THE ECONOMY RECOVERS HE RULED OUT FURTHER TAX INCREASES SAYING CANADIANS WOULDN'T TOLERATE THEM THE ECONOMISTS SAID BROAD SPENDING CUTS WERE NEEDED TO DEAL WITH THE DEFICIT PROBLEM BUT THEY DOUBTED THAT DECISIVE ACTION WOULD BE TAKEN SOON BECAUSE A FEDERAL ELECTION IS TO BE HELD IN CANADA BEFORE THE END OF THIS YEAR THEY ALSO CLAIMED THAT SOME PROVINCES PARTICULARLY ONTARIO WEREN'T SUFFICIENTLY WORRIED ABOUT DEBT ISSUE TO TAKE THE NECESSARY ACTION THE ECONOMISTS MET UNDER THE AUSPICES OF THE CD HOWE INSTITUTE A TORONTO RESEARCH ORGANIZATION AND THEIR DISCUSSIONS WERE PRESIDED OVER BY EDWARD NEUFELD ROYAL BANK OF CANADA'S EXECUTIVE VICE PRESIDENT CANADIAN BOND PRICES FELL YESTERDAY PARTLY BECAUSE OF THE ECONOMISTS' WARNINGS TRADERS SAID THE CANADIAN GOVERNMENT 2021 BOND DECLINED 060 POINT TO 11335 TO YIELD 849 COMPARED WITH 844 LATE MONDAY 9302170112 930217 REVIEW & OUTLOOK EDITORIAL ASIDES TERM LIMIT STAMPEDE THE WYOMING LEGISLATURE HAS DECIDED IT WON'T DILUTE THAT STATE'S TERM LIMIT INITIATIVE AFTER ALL AFTER THE STATE HOUSE VOTED 43TO16 TO EFFECTIVELY SCRAP ANY TERM LIMIT ON WYOMING'S CONGRESSIONAL DELEGATION CITIZENS OF THE COWBOY STATE STAMPEDED LAST WEEK THE CHAIRMAN OF A STATE SENATE COMMITTEE CALLED THE CITIZEN PROTESTERS DESPICABLE BUT THEN WENT ALONG WITH THE COMMITTEE'S 5TO0 VOTE TO LEAVE THE TERM LIMIT LAW UNTOUCHED NOT TOO MANY POLITICIANS FAIL TO HEAR THE SOUND OF A THUNDERING ELECTORATE 9302170111 930217 GENERAL RE BERKLEY AGREE TO COMBINE REINSURANCE BUSINESS STAMFORD CONN GENERAL RE CORP AND WR BERKLEY CORP AGREED TO FORM A NEW COMPANY TO COMBINE TWO OF THEIR REINSURANCE SUBSIDIARIES CREATING ONE OF THE LARGEST REINSURANCE COMPANIES OF ITS KIND THE NEW COMPANY YET UNNAMED WILL BUY GENERAL RE'S NORTH STAR REINSURANCE CORP UNIT AND BERKLEY'S SIGNET REINSURANCE CO THE COMPANY WILL BE ONE OF THE LARGEST COMPANIES THAT SELLS REINSURANCE THROUGH BROKERS AS OPPOSED TO SELLING DIRECTLY TO INSURERS GREENWICH CONNBASED BERKLEY WILL OWN 60 OF THE NEW HOLDING COMPANY WITH GENERAL RE OWNING THE REST GENERAL RE AND BERKLEY WILL RETAIN LOSS RESERVES ACCUMULATED PRIOR TO THE END OF LAST YEAR SO THE NEW COMPANY WILL BEGIN WITHOUT ANY LIABILITIES LAST YEAR THE TWO REINSURANCE COMPANIES HAD COMBINED PREMIUMS OF 184 MILLION AND SURPLUS OF 232 MILLION THE TRANSACTION IS SUBJECT TO REGULATORY APPROVALS AND A DEFINITIVE AGREEMENT GENERAL RE IS THE COUNTRY'S LARGEST REINSURER BERKLEY IS A PROPERTY AND CASUALTY INSURANCE COMPANY YESTERDAY GENERAL RE SHARES FELL 2 TO 120 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BERKLEY SHARES FELL 150 TO 4850 ON THE NATIONAL OVERTHECOUNTER MARKET 9302170110 930217 UNOCAL INCREASES CAPITAL SPENDING PLANS FOR THIS YEAR BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES UNOCAL CORP SAID IT PLANS CAPITAL SPENDING OF 141 BILLION THIS YEAR FOCUSING ON THE DEVELOPMENT OF CRUDE OIL AND NATURAL GAS RESERVES THE INVESTMENT PLAN NEARLY RETURNS THE OIL COMPANY TO ITS 1991 CAPITAL SPENDING LEVEL OF 147 BILLION LAST YEAR CAPITAL SPENDING DROPPED TO 959 MILLION AS UNOCAL IMPLEMENTED A COMPANYWIDE RESTRUCTURING AND REDUCED ITS DEBT BY MORE THAN 1 BILLION TO 37 BILLION WHAT WE'RE SEEING IS A RECOGNITION ON THE PART OF THE COMPANY THAT THE BALANCE SHEET IS IN MUCH BETTER SHAPE NOW SAID THOMAS LEWIS AN ANALYST AT DUFF & PHELPS/MCM INVESTMENT RESEARCH CO THEY ENVISION HAVING CASH FLOW IN 1993 SUFFICIENTLY ABOVE MAINTENANCE SPENDING AND WILL HAVE MORE TO SPEND ON THEIR BASIC BUSINESSES UNDER THE PLAN UNOCAL SAID IT EXPECTS TO SPEND 817 MILLION ON WORLDWIDE PETROLEUM DEVELOPMENT UP ABOUT 49 FROM LAST YEAR'S 549 MILLION SPENDING ON WORLDWIDE PETROLEUM EXPLORATION WAS BUDGETED AT 93 MILLION SLIGHTLY HIGHER THAN LAST YEAR'S 90 MILLION BUT DOWN SHARPLY FROM THE PREVIOUS YEAR'S 215 MILLION THE CURRENT LEVEL OF SPENDING ON EXPLORATION REFLECTS UNOCAL'S SHIFT TO DEVELOPING THE COMPANY'S EXISTING RESERVE INVENTORY WHILE FOCUSING ON FEWER KEY EXPLORATION PROJECTS THE COMPANY SAID CAPITAL SPENDING FOR GEOTHERMAL ENERGY WAS SET AT AN EXPECTED 85 MILLION MORE THAN DOUBLE THE PREVIOUS YEAR'S 37 MILLION REFINING MARKETING AND TRANSPORTATION CAPITAL SPENDING WAS PROJECTED AT ABOUT 343 MILLION UP FROM 201 MILLION LAST YEAR AND BUT STILL LOWER THAN 479 MILLION IN 1991 THE RECENT PROJECTION INCLUDES NEARLY 240 MILLION FOR GENERAL REFINERY UPGRADES TO MEET ENVIRONMENTAL REQUIREMENTS AND THE ADDITION OF UNITS TO ASSIST IN THE MANUFACTURE OF REFORMULATED GASOLINE RICHARD J STEGEMEIER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE CURRENT YEAR'S CAPITAL INVESTMENT PROGRAM WILL BE FUNDED WITH IMPROVED CASH FLOW FROM OPERATIONS AND THE PROCEEDS FROM MAJOR ASSET SALES INCLUDING THE SALE OF THE COMPANY'S AUTO/TRUCKSTOP SYSTEM FOR AN EXPECTED 180 MILLION THE SALE TO NATIONAL AUTO/TRUCKSTOPS INC IS EXPECTED TO CLOSE IN THE FIRST QUARTER OF THIS YEAR PROCEEDS FROM THE SALE OF A 513 MILLION PRIVATE PLACEMENT PREFERRED STOCK ISSUE LAST YEAR WERE USED TO ACCELERATE DEBT REDUCTION MR STEGEMEIER SAID THAT MADE CASH FLOW FROM OPERATIONS WHICH OTHERWISE WOULD HAVE BEEN USED FOR REDUCING DEBT AVAILABLE FOR INVESTMENT IN UNOCAL'S CORE BUSINESSES THE COMPANY SAID IT PLANS TO REDUCE TOTAL DEBT BY AN ADDITIONAL 500 MILLION OVER THE NEXT FOUR YEARS IN NEW YORK STOCK EXCHANGE TRADING UNOCAL SHARES FELL 625 CENTS TO 25125 9302170109 930217 WILT SHOOTS AN AIR BALL WITH STOCK OFFER BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILT CHAMBERLAIN TOOK HIS BALL AND WENT HOME YESTERDAY AFTER ITS STOCK PLUNGED 34 IN ITS FIRST TWO DAYS OF TRADING WILT CHAMBERLAIN'S RESTAURANTS INC ANNOUNCED A WITHDRAWAL OF ITS HYPED INITIAL PUBLIC STOCK OFFERING JUST BEFORE THE SHARES WERE TO BE DELIVERED TO INVESTORS THE IPO IN THE RESTAURANT NAMED AFTER THE LEGENDARY BASKETBALL PLAYER WAS ONE OF THE WORST PERFORMING AND MOST MOCKED STOCK ISSUES TO HIT THE MARKET MANY TRADERS SCOFFED LAST WEEK WHEN THE WILT CHAMBERLAIN'S OFFERING CAME OUT AT 7 A SHARE APPARENTLY RAISING 98 MILLION FOR A COMPANY THAT HAS ONLY A SINGLE 242SEAT RESTAURANT IN BOCA RATON FLA BUT PLANS FOR MORE IN THE FIRST DAY OF TRADING THURSDAY THE STOCK BRIEFLY ROSE TO 750 WHICH SEEMINGLY ALLOWED SAVVY EARLY INVESTORS TO GET OUT WITH A QUICK PROFIT BUT IT NOSEDIVED TO 6 BY THE END OF THE DAY ON FRIDAY THE STOCK PLUNGED FURTHER TO 4625 THE STOCK NEVER OPENED FOR TRADING YESTERDAY THE WITHDRAWAL OF AN IPO IS A RARE EVENT BECAUSE IT REQUIRES THE CONSENT OF BOTH THE ISSUING COMPANY AND THE WALL STREET SECURITIES FIRM THAT UNDERWROTE THE STOCK ISSUE IT HAPPENED ONLY TWICE IN 1992 AND ABOUT FOUR TIMES THE YEAR BEFORE SAID A SPOKESMAN FOR THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS THE NASDAQ OVERTHECOUNTER MARKET WHERE THE RESTAURANT'S SHARES HAD TRADED UNDER THE SYMBOL WILT WE'RE SENDING A NOTICE TO OUR MEMBERS THAT ALL TRADES WERE CANCELED THE NASD SPOKESMAN SAID INVESTORS WHO HAVE ALREADY PAID FOR SHARES EITHER IN THE IPO OR IN LATER TRADING WILL GET THEIR MONEY BACK THROUGH THEIR BROKERS THE SPOKESMAN SAID CHARLES BENNETT THE NASD'S DIRECTOR OF CORPORATION FINANCING IN WASHINGTON SAID INVESTORS SHOULD EXPECT THEIR MONEY BACK IN FULL BY WEEK'S END IN A STATEMENT WILT CHAMBERLAIN'S AND ITS SMALL WALL STREET UNDERWRITER MEYERS POLLOCK ROBBINS INC SAID THEY MUTUALLY AGREED TO WITHDRAW THE OFFERING THE RESTAURANT SAID IT WILL PROCEED WITH ITS EXPANSION PLANS AND MAY EVALUATE THE POSSIBILITY OF A NEW PUBLIC OFFERING AT AN APPROPRIATE TIME IN THE FUTURE WHAT WENT WRONG THOUGH INSTITUTIONAL INVESTORS TURNED OUT ENTHUSIASTICALLY FOR THE PREOFFERING ROAD SHOW ATTENDED BY MR CHAMBERLAIN IT TURNS OUT THAT MANY INVESTORS WENT THERE SIMPLY TO MEET THE FORMER BASKETBALL STAR AND ONCE THE ISSUE CAME OUT MANY OF THESE INVESTORS IMMEDIATELY SOLD THE SHARES THEY WERE ALLOTED A PRACTICE CALLED FLIPPING AT THAT POINT THE STOCK'S UNDERWRITERS AND OTHER OVERTHECOUNTER TRADERS WEREN'T ABLE TO GENERATE SUFFICIENT BUYING INTEREST IN A STOCK THAT MANY ANALYSTS AND THE PRESS WERE SCOFFING AT JUST AS THE OFFERING WAS DERIDED AS A SIGN OF EXCESS IN THE REDHOT IPO MARKET ITS FAILURE SHOWS THAT INVESTORS DO HAVE THEIR LIMITS OVERTHECOUNTER TRADERS SAID IT JUST SHOWS THAT INVESTORS ARE INTELLIGENT PEOPLE AND THEY LOOK AT THESE OFFERINGS ON THEIR OWN MERIT SAID WILLIAM SULYA HEAD OF NASDAQ TRADING AT AG EDWARDS & SONS INC IN ST LOUIS OBVIOUSLY THE VALUE WASN'T THERE THE THING JUST FELL APART SAID ANOTHER TRADER I JUST DON'T UNDERSTAND HOW IT GOT TO THE PLACE IT WAS TO BEGIN WITH EVEN SPORTSLOVING MONEY MANAGERS LIKE SCOTT BLACK OF DELPHI MANAGEMENT INC IN BOSTON COUDN'T BRING THEMSELVES TO TAKE A CHANCE ON THE OFFERING WHILE WILT'S 7FOOT2 SAID MR BLACK THE PRICETOBOOK AND PRICETOEARNINGS RATIOS OF THE COMPANY WERE TOO TALL FOR ME ALL THE RISKS OF THE OFFERING WERE SPELLED OUT IN THE PROSPECTUS OF COURSE INCLUDING THE FACT THAT THE RESTAURANT HAS ONLY A TWOYEAR TRACK RECORD AND MODEST PROFIT OF 222706 IN THE FIRST NINE MONTHS OF LAST YEAR MR CHAMBERLAIN WAS TO HAVE OWNED A 33 STAKE IN THE PUBLIC COMPANY WALL STREET NEVER TOOK THE WHOLE THING SERIOUSLY BUT NEITHER THE COMPANY NOR THE UNDERWRITER SAW ANYTHING FUNNY ABOUT IT INVESTING IS A SERIOUS BUSINESS I DON'T HAVE FUN' WITH INVESTMENTS SAID DONALD ECKER PRESIDENT OF MEYERS POLLOCK HE SAID THE IPO WAS WITHDRAWN TO PROTECT THE PUBLIC AFTER THE BIG PRICE PLUNGE INVESTORS OFTEN SUE UNDERWRITERS AND ISSUING COMPANIES AFTER STOCK PLUNGES BUT ANY SUCH POTENTIAL LEGAL PROBLEM SEEMS TO HAVE BEEN AVERTED WITH THE WITHDRAWAL A SPOKESMAN FOR WILT CHAMBERLAIN'S BARRY ROTHMAN SAID MR CHAMBERLAIN WASN'T AVAILABLE TO COMMENT HE'S DISAPPOINTED OBVIOUSLY MR ROTHMAN SAID THE SPOKESMAN ADDED THAT HE DOESN'T UNDERSTAND HOW OTHER HOT AND RISKY IPOS HAVE SUCCEEDED RECENTLY BUT NOT WILT CHAMBERLAIN'S A LOT OF PEOPLE WHO'VE MADE THE CRITICAL COMMENTS THEY HAVEN'T SEEN THE RESTAURANT HE PROTESTED THIS WAS TO HAVE BEEN THE FIRST IPO DONE BY THE 50YEAROLD MEYERS POLLOCK SECURITIES FIRM WHICH TOLD INVESTORS AT THE ROAD SHOW THAT IT HAD FINALLY FOUND A STORY WE THINK WILL BE GREAT ASKED IF HIS FIRM PLANS OTHER STOCK UNDERWRITINGS MR ECKER SAID I DON'T CHOOSE TO COMMENT AT THIS POINT 9302170108 930217 OTC FOCUS COMPOSITE INDEX TAKES 36 PLUNGE ROUTING RECENT RALLY IN SMALL STOCKS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RECENT RALLY IN SMALL STOCKS CAME TO A SCREECHING HALT AS THE OVERTHECOUNTER MARKET PLUNGED 36 THE NASDAQ COMPOSITE INDEX PLUMMETED 2515 TO 66539 THE GREATEST ONEDAY POINTS DECLINE SINCE THE 2955POINT DROP ON OCT 26 1987 A WEEK AFTER THE BLACK MONDAY STOCK MARKET CRASH DECLINING STOCKS SWAMPED GAINERS 2376621 ON TOTAL VOLUME OF 3037 MILLION SHARES UP FROM FRIDAY'S 2146 MILLION SHARES THE NASDAQ INDEX BROKE THROUGH THE 680 TO 690 SUPPORT LEVEL LIKE A KNIFE THROUGH BUTTER SAID PETER CANELO COUNTY NATWEST'S CHIEF MARKET STRATEGIST THIS IS A CONSOLIDATION THAT MAY LAST SEVERAL MONTHS HE PREDICTED THE INDEX COULD SOON FALL MORE THAN 2 TO 650 YESTERDAY'S SHARP DROP FOLLOWS A WEEK OF STEADY SELLING BY NASDAQ INVESTORS OVERTHECOUNTER STOCKS HAVE FALLEN 61 SINCE FEB 4 WHEN THE NASDAQ COMPOSITE INDEX HIT A HIGH OF 70885 MR CANELO SAID PRESIDENT CLINTON'S NATIONALLY TELEVISED ADDRESS MONDAY NIGHT WHICH OUTLINED SOME OF HIS PLANS FUELED THE PROFITTAKING MORE DETAILS WILL COME TONIGHT WHEN THE PRESIDENT IS TO SPEAK BEFORE CONGRESS THE WHOLE MARKET IS SUFFERING FROM POLITICAL UNCERTAINTY AND THIS IS ESPECIALLY ROUGH ON BIOTECHNOLOGY AND HIGHTECHNOLOGY STOCKS BUT HE SAID SMALL STOCKS PROBABLY WILL STILL OUTPERFORM LARGE ISSUES FOR THE YEAR I'M STILL BULLISH ON THE NASDAQ MARKET IN THE LONG TERM ALTHOUGH IN THE SHORT TERM I AM QUITE NEGATIVE AND IT IS TIME TO LOCK IN SOME PROFITS GEORGE CONSTANTINE A TECHNICAL ANALYST WITH MERRILL LYNCH CALLED YESTERDAY'S SELLOFF SHORTTERM TROUBLE FOR THE NASDAQ MARKET FROM THE END OF JANUARY TO THE BEGINNING OF FEBRUARY THE OTC STOCKS WERE AVERAGING MORE THAN 700 NEW HIGHS A DAY MR CONSTANTINE NOTED HE SAID THE LEVEL OF SPECULATION AMONG SMALLSTOCK INVESTORS ALSO WAS EVIDENT IN THE OVERHEATED MARKET FOR INITIAL PUBLIC OFFERINGS THERE IS NO WAY THAT IS SUSTAINABLE WITHOUT SOME SORT OF CORRECTION SAID MR CONSTANTINE ADDING THE MARKET IS STILL OVERBOUGHT EVEN WITH THE DAY'S LOSSES AND I THINK WE WON'T SEE ANY STRONG UPWARD MOMENTUM FOR THE NEXT MONTH OR TWO MARY FARRELL A PAINEWEBBER MARKET STRATEGIST SAID INVESTORS WHO WERE BETTING THAT SMALL COMPANIES WOULD BENEFIT FROM NEARTERM GROWTH NOW FEAR THAT THE PRESIDENT'S PLANS TO RAISE INDIVIDUAL AND CORPORATE TAXES WILL HURT ECONOMIC RECOVERY A HIGHER TAX ENVIRONMENT WILL HIT THE CONSUMER WHO IS ALREADY SQUEEZED AND WILL NOW HAVE LESS DISCRETIONARY INCOME SHE SAID THIS IS ESPECIALLY TRUE FOR INVESTORS WITH INCOMES OF 250000 AND MORE WHO TEND TO BE LARGE PLAYERS IN THE SMALLSTOCK NAMES DESPITE THE PLUNGE TRADERS SAID MUCH OF THE SELLING WAS ORDERLY RATHER THAN PANICKED WE'VE BEEN HAVING A SELLOFF BUT MANY SAY THIS IS A BUYING OPPORTUNITY SAID EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD DAVID BOSTIAN HERZOG'S CHIEF ECONOMIST SAID THERE IS A STRONG POSSIBILITY THAT THE NASDAQ MARKET COULD REBOUND WITHIN A WEEK THERE IS A LOT OF CASH OUT THERE AND WHENEVER THERE IS A DRAMATIC SELLOFF A LOT OF BUYERS COME IN TO BARGAIN HUNT MR BOSTIAN SAID INTEREST RATES REMAIN LOW AND ANY PLANS THAT CLINTON HAS WILL TAKE A LONG TIME TO MAKE IT THROUGH CONGRESS SEVERAL LARGE TECHNOLOGY STOCKS TUMBLED UNDER YESTERDAY'S SELLING PRESSURE MICROSOFT DROPPED 3 1/2 TO 80 1/8 BMC SOFTWARE DIVED 5 1/2 TO 62 1/2 AND INTEL FELL 5 1/8 TO 105 7/8 CITING SIGNS THAT TECHNOLOGY STOCKS MIGHT HAVE PEAKED MARKET RESEARCHERS SOUNDVIEW FINANCIAL GROUP ADVISED PORTFOLIO MANAGERS TO REDUCE THEIR EXPOSURE TO TECHNOLOGY SHARES AND PREDICTED A FURTHER 15 TO 20 SELLOFF IN THE GROUP OVER THE NEXT THREE TO FIVE MONTHS INVESTORS SOLD HEALTHCARE STOCKS FEARING THAT THE NEW ADMINISTRATION'S EFFORTS TO REVAMP THE NATION'S HEALTHCARE SYSTEM WILL CRIMP CORPORATE PROFITS IN THAT INDUSTRY THE SHARES OF HEALTH MAINTENANCE ORGANIZATION COMPANIES HAVE BEEN PUMMELED SINCE LATE LAST WEEK AND THAT SELLING CONTINUED YESTERDAY IN ADDITION TO WORRIES OVER HEALTHCARE REFORM INVESTORS HAVE BECOME CONCERNED ABOUT INCREASING PRICE COMPETITION AMONG HMO CONCERNS LOSERS IN THAT GROUP YESTERDAY INCLUDED US HEALTHCARE WHICH FELL 2 5/8 TO 45 3/4 COVENTRY WHICH LOST 6 7/8 TO 20 1/8 AND PACIFICARE HEALTH SYSTEMS' CLASS B WHICH DECLINED 7 TO 30 3/4 BIOTECHNOLOGY STOCKS ALSO FELL SHARPLY AMGEN SANK 4 TO 49 7/8 SYNERGEN SLID 2 1/4 TO 48 1/4 AND BIOGEN DROPPED 4 1/2 TO 30 3/4 9302170107 930217 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 MORGAN GUARANTY TRUST CO 1 BILLION OF BANK NOTES DUE FEB 23 1994 PRICED AT PAR TO YIELD 345 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF FIVE BASIS POINTS ABOVE THE TREASURY'S ONEYEAR BILL RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS MORGAN IS A UNIT OF JP MORGAN & CO MOBIL CORP 250 MILLION OF DEBENTURES DUE FEB 23 2033 PRICED AS 7 5/8 AT 98951 TO YIELD 771 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP CATERPILLAR INC 200 MILLION OF DEBENTURES DUE FEB 15 2023 PRICED AS 8 AT 99602 TO YIELD 8035 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MERRILL LYNCH & CO 200 MILLION OF NOTES DUE MARCH 1 2003 PRICED AS 6 7/8 AT 9911 TO YIELD 7 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH MICHIGAN BELL TELEPHONE CO 200 MILLION OF DEBENTURES DUE FEB 15 2023 PRICED AS 7 1/2 AT 99465 TO YIELD 7545 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED DOUBLEA1 BY MOODY'S AND TRIPLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MICHIGAN BELL IS A UNIT OF AMERITECH CORP PNC FUNDING CORP 200 MILLION OF SUBORDINATED NOTES DUE MARCH 1 2003 PRICED AS 6 7/8 AT 9912 TO YIELD 6998 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 665 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PNC FUNDING IS A UNIT OF PNC FINANCIAL CORP NEW YORK METROPOLITIAN TRANSPORTATION AUTHORITY 4159 MILLION OF SERIES M TRANSIT FACILITIES REVENUE BONDS PRICED BY A FIRST BOSTON GROUP YIELDS RANGE FROM 510 IN 1998 TO 6191 IN 2014 THE BONDS HAVE PRELIMINARY RATING OF BAA FROM MOODY'S AND TRIPLEBPLUS FROM S&P THE 19992006 SERIAL BONDS ARE INSURED BY AMBAC INDEMNITY CO AND THE 20072008 AND 2011 SERIAL BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO THOSE BONDS ARE RATED TRIPLEA BY MOODY'S AND S&P THE 1998 AND 2014 SERIAL BONDS HAVE PRELIMINARY RATINGS OF BAA FROM MOODY'S AND TRIPLEBPLUS FROM S&P PALM BEACH COUNTY SCHOOL DISTRICT FLA 649 MILLION OF GENERAL OBLIGATION REFUNDING BONDS PRICED BY A MERRILL LYNCH GROUP YIELDS ON THE BONDS RANGE FROM 250 IN 1993 TO 550 IN 2007 THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P EL PASO COUNTY TEXAS 507 MILLION OF SERIES A AND B LIMITED TAX GENERAL OBLIGATION JAIL AND REFUNDING BONDS PRICED BY A MERRILL LYNCH GROUP YIELDS RANGE FROM 280 IN 1994 TO 595 IN 2013 THE SERIES A AND B BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND ARE RATED TRIPLEA BY MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION A 500 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS THE OFFERING SERIES 199335 IS BACKED BY FANNIE MAE'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 149 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS THE OFFERING SERIES 199333 IS BACKED BY FANNIE MAE'S 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY GOLDMAN SACHS THE OFFERING SERIES 199336 IS BACKED BY FANNIE MAE'S 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 195 MILLION OF REMIC SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES THE OFFERING SERIES 199331 IS BACKED BY FANNIE MAE'S 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES THE OFFERING SERIES 199334 IS BACKED BY FANNIE MAE'S 9 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 10208 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2288 YEARS EUROPEAN INVESTMENT BANK SUPRANATIONAL 350 MILLION CANADIAN DOLLARS OF 7 1/2 EUROBONDS DUE MARCH 23 2000 AT AN ISSUE PRICE OF 10110 VIA SALOMON BROTHERS INTERNATIONAL OFFERED INITIALLY AT A FIXED PRICE 9940 TO YIELD 761 A MARGIN OF 28 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO CREDIT LYONNAIS FRANCE 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE MARCH 10 2003 VIA KIDDER PEABODY INTERNATIONAL INTEREST WILL BE PAID AT 25 BASIS POINTS BELOW THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS SUBJECT TO A MINIMUM OF 5 AND MAXIMUM OF 9 1/4 ISSUE PRICE OF PAR FEES 1/2 JAPAN AIRLINES CO LTD JAPAN 40 BILLION YEN OF 46 EUROBONDS DUE JUNE 18 1998 AT AN ISSUE PRICE 101 3/4 VIA NIKKO EUROPE LTD OFFERED INITIALLY AT A FIXED PRICE OF 10015 TO YIELD 456 FEES 1 7/8 JAPAN AIRLINES CO LTD JAPAN 20 BILLION YEN OF 46 EUROBONDS DUE MARCH 18 1998 AT AN ISSUE PRICE OF 101725 VIA YAMAICHI INTERNATIONAL EUROPE LTD OFFERED INITIALLY AT A FIXED PRICE OF 10015 TO YIELD 457 FEES 1 7/8 FINANCE FOR DANISH INDUSTRY AS DENMARK 150 MILLION GUILDERS OF 7 EUROBONDS DUE MARCH 24 2000 AT AN ISSUE PRICE OF 100 1/4 VIA NATIONALE INVESTERINGSBANK OFFERED INITIALLY AT A FIXED PRICE OF 99 1/2 TO YIELD 709 A MARGIN OF 23 BASIS POINTS ABOVE THE COMPARABLE DUTCH GOVERNMENT BOND FEES ONE NISSEKI HOUSE INDUSTRY CO JAPAN 65 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 375 NOTES DUE MARCH 31 1997 AT PAR VIA LEAD MANAGER J HENRY SCHRODER AG EACH 50000 SWISS FRANC NOTE IS CONVERTIBLE FROM MARCH 15 1993 TO MARCH 24 1997 FEES 1 5/8 9302170106 930217 INSIDE TRACK INSIDER SNAPS UP CONCORD CAMERA STOCK AFTER A TIMELY TRIM OF LESLIE FAY STAKE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VENTURE CAPITALIST IRA J HECHLER SOLD 18 MILLION OF LESLIE FAY COS STOCK LAST YEAR AT TRIPLE THE APPAREL MAKER'S CURRENT PRICE NOW HE'S BULLISH ON CONCORD CAMERA CORP MR HECHLER WHO COULDN'T BE REACHED FOR COMMENT IS A NEW YORK FINANCIER AND A DIRECTOR OF BOTH LESLIE FAY AND CONCORD CAMERA HE BECAME A SHAREHOLDER OF LESLIE FAY IN ITS 1981 LEVERAGED BUYOUT AND WAS THE ONLY INSIDER TO SELL SUBSTANTIAL AMOUNTS OF ITS STOCK LAST YEAR MOST OF HIS SALES WERE AT A PRICE JUST BELOW THE COMPANY'S 1992 HIGH OF 2175 FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW MR HECHLER TRIMMED HIS LESLIE FAY HOLDINGS SUBSTANTIALLY MONTHS BEFORE NEWS OF ACCOUNTING IRREGULARITIES CUT THE VALUE OF THE NEW YORK COMPANY'S SHARES LAST FEBRUARY HE SOLD 89700 SHARES AT PRICES RANGING FROM 20 TO 2150 A SHARE FOR A TOTAL OF ABOUT 18 MILLION ACCORDING TO SEC FILINGS HE RETAINS ABOUT 11 MILLION SHARES THE FILINGS SHOW EARLY THIS MONTH LESLIE FAY SAID IT REQUESTED ITS AUDIT COMMITTEE TO BEGIN AN INVESTIGATION INTO ALLEGED ACCOUNTING IRREGULARITIES THAT IF TRUE COULD RESULT IN A RESTATEMENT OF ITS 1991 EARNINGS AND THE ELIMINATION OF ANY PROFIT FOR 1992 FOLLOWING THE ANNOUNCEMENT THE COMPANY'S STOCK LOST MORE THAN A THIRD OF ITS VALUE IT FELL 4625 OR 39 TO 7375 IN HEAVY NEW YORK STOCK EXCHANGE TRADING SHAREHOLDERS HAVE SINCE FILED SEVERAL LAWSUITS AGAINST THE COMPANY AND ITS TOP OFFICERS AND DIRECTORS YESTERDAY LESLIE FAY'S SHARES CLOSED AT 675 UP 125 CENTS IN BIG BOARD TRADING MORE RECENTLY MR HECHLER HAS BEEN BUYING SEC FILINGS REPORTED IN THIS WEEK'S INSIDER TRADING SPOTLIGHT SHOW THAT MR HECHLER PURCHASED 458000 SHARES OF CONCORD CAMERA ON DEC 31 THOSE SHARES WERE PART OF A PRIVATE PLACEMENT OF 33 MILLION SHARES THE AVENEL NJ COMPANY SAID CONCORD MANUFACTURES AND SELLS 35 MILLIMETER AND 110 CARTRIDGE CAMERAS UNDER THE KEYSTONE AND ARGUS BRAND NAMES AMONG OTHERS AT THE TIME CONCORD STOCK WAS TRADING AT ABOUT 9 A SHARE THE SEC FILINGS SHOW THAT THE STOCK MR HECHLER PURCHASED WAS PRICED AT 5 A SHARE FOR A TOTAL OF 229 MILLION MOST OF THAT AMOUNT REPRESENTED CANCELLATION OF A 2 MILLION PERSONAL LOAN MR HECHLER HAD PREVIOUSLY MADE TO THE COMPANY SAID MICHAEL KATZENSTEIN CONCORD'S ATTORNEY THE 290000 BALANCE OF THE PURCHASE PRICE CAME FROM MR HECHLER'S PERSONAL FUNDS MR KATZENSTEIN SAID YESTERDAY CONCORD REPORTED A FISCAL SECONDQUARTER LOSS OF 16 CENTS A SHARE COMPARED WITH NET INCOME OF 29 CENTS A SHARE IN THE YEAREARLIER PERIOD THE SHARES HAVE BEEN EDGING LOWER SINCE THE COMPANY ANNOUNCED LAST MONTH THAT IT CANCELED PLANS TO ACQUIRE THE VIVITAR PHOTOGRAPHIC BUSINESSES OF GESTETNER HOLDINGS PLC IN OVERTHECOUNTER TRADING YESTERDAY CONCORD STOCK FINISHED AT 750 DOWN 75 CENTS A SHARE 9302170105 930217 HOSPITALITY FRANCHISE AGREES TO BUY SUPER 8 MOTELS INC FRANCHISING SYSTEM PARSIPPANY NJ SLATING A MAJOR ACQUISITION IN THE LOWBUDGET END OF THE LODGING MARKET HOSPITALITY FRANCHISE SYSTEMS INC SAID IT AGREED TO BUY THE SUPER 8 MOTELS INC FRANCHISING SYSTEM FOR 125 MILLION THOUGH NO PROPERTY WILL CHANGE HANDS HOSPITALITY WILL ADD MORE THAN 1000 MOTELS AND ABOUT 60000 ROOMS TO ITS SYSTEM HOSPITALITY WHICH LICENSES AND FRANCHISES THE MIDRANGE DAYS INN RAMADA AND HOWARD JOHNSON MOTELS AND HOTELS HAS A SYSTEM WITH MORE THAN 2500 LOCATIONS AND MORE THAN 300000 ROOMS HOSPITALITY OWNS NO PROPERTY BUT SELLS VARIOUS HOTEL FRANCHISE NAMES AND THEN COORDINATES RESERVATIONS MARKETING PRODUCT PROCUREMENT AND OTHER SERVICE OPERATIONS FOR ITS FRANCHISEES FOR A FEE HOSPITALITY WILL FINANCE THE PURCHASE THROUGH BORROWINGS FROM ITS EXISTING BANK GROUP IT ADDED THAT IT IS NEGOTIATING TO REFINANCE ITS EXISTING 270 MILLION DEBT THIS REALLY POSITIONS HOSPITALITY NICELY IN THE LOWERBUDGET END OF THE INDUSTRY WHERE THEY WEREN'T BEFORE SAID MIKE MUELLER AN ANALYST WITH MONTGOMERY SECURITIES AND THE LOWEND ENTRY IS IMPORTANT BECAUSE IT IS ONE OF THE FASTESTGROWING SEGMENTS IN THE LODGING INDUSTRY ANALYSTS ALSO NOTED THAT THE SUPER 8 CHAIN'S FRANCHISING SYSTEM HAS BEEN PROFITABLE AND ITS 66 OCCUPANCY RATE IS ABOVE THE INDUSTRY'S 6061 AVERAGE ACCORDING TO HOSPITALITY SUPER 8 HAD 34 MILLION IN FRANCHISING REVENUE FOR 1992 AND 154 MILLION IN EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION DESPITE THE GENERAL MARKET SELLOFF YESTERDAY HOSPITALITY SHARES WERE UP 125 CENTS TO 2625 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY WHICH WENT PUBLIC LAST DECEMBER IS CONTROLLED BY BLACKSTONE CAPITAL PARTNERS LIMITED PARTNERSHIP SUPER 8'S FIRST MOTEL OPENED IN ABERDEEN SD 17 YEARS AGO THE CHAIN HAS CONCENTRATED MAINLY ON MIDWESTERN RURAL COMMUNITIES AND ON OFFERING SIMPLE CLEAN ROOMS AT A LOW PRICE THE CHAIN IS NAMED FOR AN 888PERNIGHT CHARGE IN 1976 THE AVERAGE PRICE IS NOW ABOUT 37 A NIGHT COMPARED WITH AN AVERAGE OF ABOUT 43 AT DAYS INN SUPER 8 FLIRTED WITH SELLING ITS CHAIN TO A GROUP OF HONG KONG INVESTORS IN 1990 AND MADE THEN ABANDONED PLANS TO GO PUBLIC LAST SPRING RONALD J RIVETT FOUNDER AND CHAIRMAN OF SUPER 8 SAID SELLING ITS SYSTEM TO HOSPITALITY FRANCHISE WOULD INCREASE THE VALUE OF OUR MOTELS FOLLOWING THE TRANSACTION EXPECTED TO BE COMPLETED IN APRIL SUPER 8 WILL CONTINUE TO OWN AND OPERATE 48 HOTELS IN THE CHAIN JOHN D SNODGRASS PRESIDENT AND CHIEF OPERATING OFFICER OF HOSPITALITY WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUPER 8'S FRANCHISING SYSTEM 9302170104 930217 TECHNOLOGY & HEALTH IBM IS PROJECTING MINICOMPUTER LINE WILL TURN AROUND BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SAID ITS HUGE MINICOMPUTER BUSINESS WHOSE UNEXPECTED LATE 1992 SALES PLUNGE STIRRED FEARS ABOUT IBM'S CHANCES FOR A TURNAROUND IS RECOVERING AND WILL GROW 3 TO 4 THIS YEAR THE ESTIMATE FROM IBM OFFERED EVIDENCE THAT IN AT LEAST ONE CRUCIAL MARKET THE COMPUTER COMPANY IS ARRESTING THE WORST DECLINE IN ITS HISTORY MINICOMPUTERS AND PRODUCTS THAT GO WITH THEM MAKE UP ABOUT 20 OF IBM'S SALES BUT IBM STILL FACES AN UPHILL BATTLE WRINGING GROWTH FROM ITS FLAGSHIP AS/400 MINICOMPUTER IBM SAID THE WORLDWIDE MINICOMPUTER MARKET WILL GROW ONLY 1 TO 2 THIS YEAR AFTER SEVERAL YEARS OF 4 TO 5 GROWTH RATES AND A 4 DECLINE LAST YEAR IBM DEFINES THE MARKET AS COMMERCIAL COMPUTERS FOR MULTIPLE USERS COSTING BETWEEN 15000 AND 1 MILLION IN AN INTERVIEW WILLIAM STUEK A SENIOR IBM MINICOMPUTER MARKETING EXECUTIVE CALLED THE 1992 DECLINE AN ANOMALY BUT HE SAID MINICOMPUTER PRICES ARE PLUMMETING SO FAST THAT THE MARKET CAN NO LONGER SUSTAIN ITS HISTORIC GROWTH RATES MR STUEK MADE HIS COMMENTS AS IBM TOOK A BIG STEP TOWARD ACCELERATING THE DROP IN MINICOMPUTER PRICES IT ANNOUNCED 14 NEW AS/400 MODELS AND SAID THEY OFFER AN AVERAGE OF 26 MORE COMPUTING POWER PER DOLLAR SINCE ITS INTRODUCTION IN 1988 THE AS/400 HAS BEEN ONE OF THE BRIGHTEST LIGHTS IN IBM'S DISMAL RESULTS IN 1990 THE IBM TEAM IN ROCHESTER MINN THAT BUILT THE MACHINE WON THE BALDRIGE AWARD FOR QUALITY THE MACHINE POSTED DOUBLEDIGIT SALES GAINS IN ITS FIRST YEARS LAST MONTH ANALYSTS WERE STUNNED TO LEARN THAT THE AS/400 POSTED A DOUBLEDIGIT DROP IN REVENUE FOR THE FOURTH QUARTER OF 1992 YESTERDAY MR STUEK SOUGHT TO DEMONSTRATE THAT DESPITE THAT FOURTHQUARTER DECLINE THE AS/400'S BUSINESS IS STILL ROBUST HE SAID ITS HARDWARE SALES DROPPED ONLY 2 IN 1992 HALF THE INDUSTRYWIDE DROP HE ALSO MAINTAINED THAT IBM REMAINS THE MINICOMPUTER MARKET LEADER WITH A ROUGHLY 15 SHARE AHEAD OF RIVALS HEWLETTPACKARD CO AND DIGITAL EQUIPMENT CORP MR STUEK SAID THE MINICOMPUTER BUSINESS LAST YEAR ACHIEVED AN IMPRESSIVE 17 RETURN ON ASSETS HE SAID THE BUSINESS HAD 1992 HARDWARE SALES OF ABOUT 37 BILLION AND OPERATINGSYSTEM SOFTWARE SALES OF ABOUT 700 MILLION ADDING RELATED REVENUE FROM OTHER IBM UNITS INCLUDING FINANCING APPLICATIONS SOFTWARE AND ACCESSORIES MINICOMPUTERS CONTRIBUTED ABOUT 13 BILLION IN SALES TO IBM IN 1992 HE SAID IBM SAID ITS MOST POWERFUL NEW AS/400 MODELS USE A NEW SEMICONDUCTOR TECHNOLOGY KNOWN AS BICMOS THE TECHNOLOGY IS A HYBRID OF THE POWERFUL BUT SUPERHOT BIPOLAR TECHNOLOGY USED IN BIG MAINFRAME COMPUTERS AND THE SLOWER BUT COOLER COMPLEMENTARY METAL OXIDE SEMICONDUCTOR TECHNOLOGY USED IN PCS 9302170103 930217 TECHNOLOGY & HEALTH BELLSOUTH INTEL AND TWO OTHER FIRMS FORM ALLIANCE FOR MOBILE COMPUTING BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL BELLSOUTH CORP INTEL CORP ERICSSON GE AND RAM MOBILE DATA HAVE FORMED AN ALLIANCE TO DEVELOP NEW PRODUCTS AND SERVICES FOR MOBILE COMPUTING THE COMPANIES DISCLOSED PRELIMINARY AGREEMENTS AIMED AT EXPANDING THE USE OF PORTABLE COMPUTERS THAT CAN TRANSMIT AND RECEIVE DATA OVER RAM MOBILE DATA'S WIRELESS NETWORK THE INITIAL TARGET AUDIENCE IS BUSINESS EXECUTIVES WHO COULD PICK UP OR SEND ELECTRONIC MAIL MESSAGES OR OTHER COMPUTER TRANSMISSIONS OVER PORTABLE DEVICES WHILE TRAVELING THE COMPANIES SAID THAT LATER THIS YEAR THEY PLAN TO OFFER INTEL HARDWARE AND SOFTWARE PACKAGED WITH WIRELESS COMMUNICATIONS SERVICES THROUGH SOME 6200 RETAIL OUTLETS THAT ALREADY CARRY INTEL PRODUCTS BY THE TIME YOU WALK OUT OF THE STORE YOU CAN BE UP AND RUNNING SAID MICHAEL AYMAR VICE PRESIDENT AND GENERAL MANAGER OF INTEL'S MOBILE COMPUTER GROUP YOU CAN BUY A PORTABLE PERSONAL COMPUTER A RADIO MODEM PACKAGED WITH NECESSARY SOFTWARE AND SUBSCRIBE TO A WIRELESS SERVICE INTEL WILL BE WORKING WITH ERICSSON GE A VENTURE OF THE SWEDISH TELECOMMUNICATIONS GIANT LM ERICSSON AND GENERAL ELECTRIC CO WHICH HAS DEVELOPED WIRELESS MODEM TECHNOLOGY THE INTEL DEVICES AND SOFTWARE WILL LET CUSTOMERS USE THE MOBILTEX DATA NETWORKS DEVELOPED BY ERICSSON AND OPERATED BY RAM MOBILE DATA A JOINT VENTURE OF BELLSOUTH AND RAM BROADCASTING CORP FOR THE PAST TWO YEARS RAM MOBILE DATA HAS BEEN AGGRESSIVELY BUILDING A NATIONWIDE NETWORK THAT IT BELIEVES WILL REACH ABOUT 90 OF THE POPULATION IN URBAN AREAS BY JUNE THE ANNOUNCEMENT IS PART OF A GROWING TREND IN TELECOMMUNICATIONS ALLIANCES OF POWERFUL PLAYERS TO DEVELOP NICHE MARKETS JOHN CLENDENIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BELLSOUTH PREDICTED THE EMERGENCE OF A WHOLE ARRAY OF NEW STRATEGIC ALLIANCES AND ARRANGEMENTS WITH COMPUTER AND COMMUNICATIONS COMPANIES AS THE MOBILE COMPUTING MARKET GROWS THAT SENTIMENT WAS ECHOED BY AKE PERSSON VICE PRESIDENT OF BUSINESS DEVELOPMENT FOR ERICSSON GE YOU WILL SEE ALLIANCES COVERING THE WHOLE INDUSTRY HE SAID FOR NOW WE BELIEVE WE HAVE FOUND THE BESTPLACED PARTNER IN THE PC INDUSTRY INDEED THE ANNOUNCEMENT COMES AMID A FLURRY OF ACTIVITY CENTERED AROUND EXPANDING THE MARKET FOR MOBILE COMPUTING DEVICES AND SERVICES EARLIER THIS MONTH GENERAL MAGIC A THREEYEAR OLD VENTURE STARTED BY APPLE COMPUTER INC DISCLOSED THAT AMERICAN TELEPHONE & TELEGRAPH CO SONY CORP MOTOROLA INC PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO WERE INVESTORS GENERAL MAGIC PLANS TO DEVELOP A NEW COMMUNICATIONS STANDARD THAT WILL LET DIFFERENT TYPES OF WIRELESS DEVICES COMMUNICATE WITH EACH OTHER SO THAT HANDHELD PERSONAL COMMUNICATORS CAN BE USED TO MAKE CALLS SEND AND RECEIVE ELECTRONIC MAIL SEND FACSIMILES AND RETRIEVE INFORMATION FROM REMOTE DATABASES 9302170102 930217 INTERNATIONAL PHILIPPINE TRADE DEFICIT WIDENS MANILA PHILIPPINES THE PHILIPPINES' TRADE DEFICIT IN DECEMBER 1992 REACHED 440 MILLION WIDER THAN THE PREVIOUS MONTH'S 429 MILLION AND THE YEARAGO MONTH'S LEVEL OF 171 MILLION ACCORDING TO THE NATIONAL STATISTICS OFFICE FOR ALL OF 1992 THE DEFICIT TOTALED A RECORD 479 BILLION THE FIGURE IS NEARLY 50 ABOVE THE 1991 LEVEL OF 321 BILLION 9302170101 930217 MARKETING BRIEF GILLETT HOLDINGS INC SCI TELEVISION TO BUY ASSETS OF FLORIDA TELEVISION STATION GILLETT HOLDINGS INC SAID ITS GHTV INC UNIT REACHED AN AGREEMENT TO SELL THE ASSETS OF WTVTTV A TAMPA FLA CBS AFFILIATE FOR 163 MILLION TO SCI TELEVISION INC OF VAIL COLO GHTV INC SAID IT PLANS TO USE 160 MILLION IN PROCEEDS FROM THE SALE TO REPAY DEBT OWED TO ITS DENVERBASED PARENT GILLETT WHICH BOUGHT THE TELEVISION STATION IN 1987 IN A LEVERAGED TRANSACTION EMERGED FROM BANKRUPTCY COURT PROTECTION LAST YEAR AND SAID IT PLANS TO USE THE PAYMENT TO RETIRE AN EQUAL AMOUNT OF SENIOR SECURED NOTES ISSUED AS A PART OF ITS RECENT REORGANIZATION PLAN THE SALE IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL AND IS EXPECTED TO BE CONCLUDED LATER THIS YEAR SCI TELEVISION OPERATES SIX OTHER TELEVISION STATIONS AND ALSO IS UNDERGOING A RESTRUCTURING 9302170100 930217 INTERNATIONAL BRIEF PANCONTINENTAL MINING LTD EARNINGS PLUNGED BY 89 IN FIRST HALF ENDED DEC 31 PANCONTINENTAL MINING LTD OF AUSTRALIA REPORTED THAT PROFIT FELL 89 TO 61 MILLION AUSTRALIAN DOLLARS US41 MILLION IN THE FIRST HALF ENDED DEC 31 THE YEAREARLIER PROFIT FIGURE TOTALED A579 MILLION INCLUDING A LARGE ONETIME GAIN PANCONTINENTAL SAID THAT BEFORE ACCOUNTING FOR ABNORMAL ITEMS AND TAX PROFIT DOUBLED TO A141 MILLION FROM A69 MILLION SALES ROSE 15 TO A117 MILLION FROM A1016 MILLION THE SYDNEYBASED COMPANY BOOKED A A52 MILLION ABNORMAL GAIN IN THE YEAREARLIER FIRST HALF BUT RECORDED NO ABNORMAL ITEMS IN THE SIX MONTHS TO DEC 31 1992 9302170099 930217 GOP OPPORTUNITY REJECT A DEAL WITH CLINTON BY ALBERT R HUNT AS PRESIDENT CLINTON UNVEILS HIS CRITICAL ECONOMIC PROGRAM TONIGHT THE REPUBLICAN MINORITY HAS A GOLDEN OPPORTUNITY TO HELP THE PRESIDENT ITS OWN PARTY AND THE COUNTRY THE WAY TO ACHIEVE THIS POLITICAL HAT TRICK IS SIMPLE FORGET THE KIND OF CAUTIOUS CONCILIATION THAT A NUMBER OF REPUBLICAN LEGISLATIVE LEADERS ARE ALREADY TALKING ABOUT AND OPPOSE EVERYTHING BILL CLINTON PROPOSES THE DEMOCRATS OUGHT TO PASS THEIR OWN ECONOMIC PLAN WITHOUT REPUBLICAN HELP IF IT'S SUCCESSFUL MR CLINTON AND HIS PARTY WILL REAP THE POLITICAL DIVIDENDS IF IT'S NOT THEY WILL PAY THE PRICE EITHER WAY THE VOTERS WILL BE WINNERS BECAUSE THEY WILL KNOW PRECISELY WHERE TO AFFIX BLAME OR CREDIT THAT WILL BE REFRESHING IN A POLITICAL SYSTEM THAT FOR MOST OF THE PAST DECADE HAS BEEN MARKED NOT JUST BY GRIDLOCK IN WASHINGTON BUT BY A GLARING LACK OF ACCOUNTABILITY DEMOCRATS HAVE BLAMED REPUBLICANS WHO HAVE CONTROLLED THE WHITE HOUSE FOR THE PAST DOZEN YEARS FOR THE NATION'S ECONOMIC WOES THE GOP HAS POINTED THE FINGER AT DEMOCRATS WHO'VE CONTROLLED AT LEAST ONE HOUSE OF CONGRESS FOR THAT TIME THE UPSHOT IS THE ALIENATION AND FRUSTRATION THAT SO MANY VOTERS FEEL NOT ONLY ARE THINGS LOUSY BUT THEY DON'T EVEN KNOW WHOM TO BLAME THE 1992 ELECTION WAS NOT JUST ABOUT ENDING GRIDLOCK NOTES VIN WEBER A RECENTLY RETIRED REPUBLICAN CONGRESSMAN FROM MINNESOTA IT ALSO WAS ABOUT ESTABLISHING ACCOUNTABILITY MR WEBER DOESN'T ADVOCATE DRAWING SHARP PARTISAN LINES ON MOST ISSUES BUT TONIGHT'S PACKAGE COMBINING ECONOMIC GROWTH TAXES AND SPENDING PRIORITIES HE NOTES IS THE CENTRAL ISSUE OF THE DAY THE ONE THAT OUGHT TO CLEARLY DELINEATE THE DIFFERENCES BETWEEN DEMOCRATS AND REPUBLICANS IF THE DEMOCRATS REALLY WANT TO RECAPTURE THE MANTLE OF THE GOVERNING PARTY IT'S ESSENTIAL THAT THEY PUT TOGETHER THIS ECONOMIC PACKAGE OVER THE PAST WEEK WHITE HOUSE OFFICIALS HAVE HELD PERIODIC SESSIONS WITH GROUPS OF A COUPLE DOZEN HOUSE LAWMAKERS EACH TO SEEK THIS OBJECTIVE ALREADY THERE'S GRUMBLING ABOUT THESE PLEDGE SESSIONS IT'D BE A LOT EASIER TO ENACT POLITICALLY CONTROVERSIAL MEASURES WITH GOP HELP SOME MARGINAL DEMOCRATS COULD DUCK THE TOUGH VOTES AND AT THE SAME TIME REPUBLICAN BACKING WOULD PROVIDE POLITICAL COVER FOR OTHER DEMOCRATS BUT THE RESULT WOULD BE TO DILUTE THE FINAL PRODUCT SUBSTANTIVELY AND POLITICALLY ONCE AGAIN THERE WOULD BE LESSTHANCLEARCUT LINES OF ACCOUNTABILITY FOR VOTERS OVER THE LONG HAUL THIS WOULD BE BAD FOR THE CLINTON ADMINISTRATION RONALD REAGAN FACED SIMILAR PRESSURES TO COOPERATE WITH THE OTHER PARTY IN 1981 THE NEW REPUBLICAN PRESIDENT HAD A GOP SENATE TO WORK WITH BUT THE DEMOCRATS STILL HAD A MAJORITY IN THE HOUSE NEW COMMITTEE CHAIRMEN DAN ROSTENKOWSKI OF WAYS AND MEANS AND JAMES JONES OF BUDGET WANTED TO CUT A DEAL WITH THE PRESIDENT ON THE ECONOMIC PACKAGE INSTEAD MR REAGAN WISELY REJECTED THOSE OVERTURES AND PUT TOGETHER HIS OWN DEAL WITH REPUBLICANS AND THE NECESSARY HELP OF SOME SOUTHERN CONSERVATIVE DEMOCRATS IN THE HOUSE SUBSTANTIVELY THAT PACKAGE HAD SERIOUS SHORTCOMINGS BUT IT SET THE TONE FOR A REAGAN WHITE HOUSE THAT CLEARLY WAS IN COMMAND THERE WAS NO SHARING OF CREDIT OR BLAME FOR THE 1981 PACKAGE OF BIG TAX CUTS AND SPENDING CUTBACKS IT WAS ALL RONALD REAGAN'S THAT ENABLED HIM TO GOVERN MUCH MORE EFFECTIVELY FOR THE NEXT SEVERAL YEARS IF BILL CLINTON WANTS TO ESTABLISH THOSE SAME LEADERSHIP BONA FIDES HE NEEDS TO PUSH THROUGH AN UNMISTAKABLE DEMOCRATIC PACKAGE AND CALL THE BLUFF OF RECALCITRANTS SOME DEMOCRATIC LAWMAKERS ESPECIALLY IN THE SENATE ARE INSISTING THEY AREN'T INDEBTED TO A PRESIDENT WHO GOT A MEAGER 43 OF THE NATIONAL VOTE AND RAN BEHIND DEMOCRATIC CONGRESSIONAL CANDIDATES IN MOST DISTRICTS AND STATES THEIR FATE SOME SUGGEST MAY NOT BE TIED TO BILL CLINTON'S THAT'S WISHFUL THINKING WITH LAST NOVEMBER'S ELECTION AS SEN DANIEL PATRICK MOYNIHAN D NY SAID RECENTLY IT'S OUR DEFICIT NOW IF AN ECONOMIC PROGRAM DOESN'T WORK THESE DEMOCRATS WON'T HAVE THE CONVENTIONAL SCAPEGOATS THAT RONALD REAGAN AND THE REPUBLICANS HAD IN THE 1980S THAT'S THE PRICE OF ENDING DEADLOCK THERE ARE THREE TYPES OF REPUBLICANS WHO WILL WANT TO CUT SOME DEALS WITH THE DEMOCRATS ON THIS ISSUE A MODERATE REPUBLICANS WHO THINK THEY'RE IDEOLOGICALLY NOT THAT FAR FROM BILL CLINTON B DEFICIT HAWKS WHO THINK ANY OPPORTUNITY TO REDUCE THE BUDGET DEFICIT OUGHT TO BE SEIZED AND C LONGTIME LEGISLATIVE LEADERS WHO THINK THEIR ROLE IS TO PARTICIPATE IN ALL MAJOR LEGISLATIVE INITIATIVES THESE REPUBLICANS WOULD DO MUCH BETTER HOWEVER TO WORK WITH THE CONSERVATIVE MAJORITY IN THEIR OWN PARTY TO FASHION A GOP ALTERNATIVE TO THE CLINTON PLAN TO BE SURE IT'LL GO DOWN TO DEFEAT BUT IT MAY LAY THE GROUNDWORK FOR A REAL DEBATE OVER ECONOMIC POLICY THIS ISN'T A MODEL FOR HOW TO HANDLE MOST LEGISLATIVE INITIATIVES EVEN ADVOCATES LIKE VIN WEBER SAY I CERTAINLY DON'T WANT TO SEE EVERYTHING IN GOVERNMENT PARTISANIZED ON MANY ISSUES INCLUDING A BROAD RANGE OF FOREIGN POLICY OR NATIONAL SECURITY MATTERS AS WELL AS SUCH DOMESTIC INITIATIVES AS OVERHAULING THE WELFARE SYSTEM OR CAMPAIGN FINANCING AND CONCEIVABLY EVEN HEALTHCARE LEGISLATION A BIPARTISAN APPROACH IS BOTH POSSIBLE AND PREFERABLE BUT IF THE TWO PARTIES ARE TO STAND FOR ANYTHING AND THE PUBLIC IS TO BE ABLE TO HOLD THEM ACCOUNTABLE THE LINES OUGHT TO BE DRAWN SHARPLY ON THE CENTRAL ECONOMIC ISSUE STARTING TONIGHT THUS REPUBLICANS HAVE THAT DELICIOUS OPPORTUNITY TO BE BLATANTLY PARTISAN AND RESPONSIBLE AT THE SAME TIME MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF 9302170098 930217 TOWERS FINANCIAL HALTS ITS PAYMENTS ON 200 MILLION IN BONDS SUIT CHARGES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL TOWERS FINANCIAL CORP HAS STOPPED MAKING PAYMENTS ON 200 MILLION IN BONDS BACKED BY HEALTHCARE RECEIVABLES ACCORDING TO A LAWSUIT FILED IN FEDERAL COURT BY THE TRUSTEE FOR THE BONDS IN THE SUIT SHAWMUT BANK CONNECTICUT A UNIT OF SHAWMUT NATIONAL CORP ASKED THAT TOWERS MAKE GOOD ON THE PAYMENTS WHICH AVERAGED MORE THAN 2 MILLION EACH BUSINESS DAY SHAWMUT SAID TOWERS STOPPED MAKING THE PAYMENTS FEB 9 AND THE MISSED PAYMENTS NOW TOTAL MORE THAN 10 MILLION THE SUIT FILED IN FEDERAL COURT IN BRIDGEPORT CONN ALSO DEMANDS THAT TOWERS TURN OVER INFORMATION ABOUT HOW IT HAS SPENT THE MONEY RAISED BY THE BONDS US DISTRICT JUDGE TF GILROY DALY ISSUED A TEMPORARY ORDER CALLING ON TOWERS TO MAKE THE PAYMENTS AND TO ALLOW THE TRUSTEE ACCESS TO THE COMPANY'S BOOKS TOWERS CHAIRMAN STEVEN HOFFENBERG SAID THE TWO SIDES WERE MEETING YESTERDAY TO TRY TO RESOLVE THE DISPUTE THE ACTION BY HARTFORDBASED SHAWMUT COMES ONE WEEK AFTER THE SECURITIES AND EXCHANGE COMMISSION RAISED QUESTIONS ABOUT THE HEALTH OF THE BONDS AND TOWERS IN A CIVIL SUIT THE SEC ACCUSED TOWERS A NEW YORK DEBTCOLLECTION COMPANY OF FRAUDULENTLY SELLING 215 MILLION IN OTHER NOTES AND WITH OVERSTATING ITS ASSETS BY MORE THAN DOUBLE IN COURT PAPERS THE AGENCY ALSO ALLEGED THAT TOWERS MISUSED 16 MILLION OF THE 200 MILLION RAISED BY ITS HOSPITALBILL COLLECTION SUBSIDIARY TOWERS HEALTH CARE RECEIVABLES CORP SHAWMUT'S SUIT ALSO COMES ON THE HEELS OF A DECISION LATE LAST WEEK BY DUFF & PHELPS CREDIT RATING CO CHICAGO TO WITHDRAW ITS DOUBLEA RATING FOR THE TOWERS BONDS JULIE SCHLUETER SENIOR VICE PRESIDENT IN CHARGE OF DUFF & PHELPS'S ASSETBACKED RATING GROUP SAID THE RATING WAS WITHDRAWN BECAUSE TOWERS HADN'T RESPONDED TO QUESTIONS ABOUT HOW THE BOND MONEY WAS BEING USED TOWERS IS WIDELY VIEWED AS A PIONEER IN THE BUSINESS OF REPACKAGING UNPAID HOSPITAL BILLS AND THEN SELLING THEM AS SECURITIES TO INVESTORS ANALYSTS SAID CONCERNS OVER TOWERS'S HEALTHCARE BOND BUSINESS MAY UNSETTLE THE NEW FIELD THE HOFFENBERG SITUATION WILL PUSH THE INDUSTRY TO BETTER DEFINE WHO'S RESPONSIBLE FOR CHECKING UP TO MAKE SURE THAT THE BOND MONEY IS BEING USED PROPERLY AND THAT THE RECEIVABLES ARE BEING COLLECTED MS SCHLUETER SAID MR HOFFENBERG WHO HAS SIGNED AN AGREEMENT TO BUY THE STRUGGLING NEW YORK POST TABLOID SAID TOWERS STOPPED MAKING THE PAYMENTS BECAUSE IT BELIEVED SHAWMUT WOULD HOLD THE MONEY RATHER THAN ALLOW IT TO BE USED TO FINANCE AND REFINANCE THE DEBT OF THE NURSING HOMES AND HOSPITALS WHOSE RECEIVABLES BACKED THE BONDS SHAWMUT WAS MORE CONCERNED ABOUT THE BONDHOLDERS THAN THE NURSING HOMES MR HOFFENBERG SAID TOWERS TOOK THE POSITION THAT BOTH HAVE TO BE PROTECTED MR HOFFENBERG DECLINED TO COMMENT WHEN ASKED IF INVESTMENTS IN THE HEALTHCARE BONDS ARE SAFE MS SCHLUETER SAID MOST OF THE HEALTHCARE BONDS ARE HELD BY INSTITUTIONAL INVESTORS THE ALLEGATIONS ABOUT TOWERS WHICH IS THINLY TRADED OVER THE COUNTER AND IS CONTROLLED BY MR HOFFENBERG HAVE GAINED PARTICULAR NOTICE BECAUSE OF MR HOFFENBERG'S PLANS TO BUY THE POST SEC OFFICIALS HAVE SAID IN COURT THAT MR HOFFENBERG'S ACQUISITION OF THE POST WILL ONLY DRAIN MORE MONEY FROM TOWERS WHICH THE AGENCY BELIEVES IS ALREADY STRAINED FOR FUNDS TO PAY INVESTORS MR HOFFENBERG DISPUTES THE SEC'S CLAIM 9302170097 930217 POOR PROTECTION SUSPICIONS BY RIVALS OPEN UP A SCANDAL AT ARMOREDCAR FIRM MISSING ARE TENS OF MILLIONS AND FINGERS ARE POINTING AT COMPANY'S OWNERS AN EMBARRASSMENT TO BANKS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE UNDOING OF REVERE ARMORED INC BEGAN WHEN SOME COMPETITORS TIRED OF LOSING CUSTOMERS TO REVERE'S CUTTHROAT PRICES EMPLOYED A VIDEO CAMERA THE COMPETITORS TAPED A REVERE DELIVERY IN DECEMBER OF 100 MILLION TO THE NEW YORK FEDERAL RESERVE BANK'S BUFFALO BRANCH THEY WERE HOPING FOR EVIDENCE OF SHODDY SECURITY AND ACCORDING TO A STATE LAWENFORCEMENT OFFICIAL THEY GOT IT IN THE PARKING LOT OF A HIGHWAY RESTAURANT THE TAPE SHOWED THE DRIVER AND A GUARD LEAVING THE ARMORED TRACTORTRAILER TRUCK LOCKED BUT UNGUARDED ITS DIESEL ENGINE RUNNING WHILE THEY WENT INSIDE TO EAT THE PRESENTATION OF THAT TAPE TO A LLOYDS OF LONDON UNDERWRITING GROUP THAT HAD INSURED REVERE FOR 100 MILLION HAS LED TO THE DISCOVERY OF PROBLEMS CONSIDERABLY MORE SERIOUS THAN SHODDY SECURITY A WEEK AGO TODAY FEDERAL AUTHORITIES LAUNCHED A PREDAWN RAID ON REVERE HEADQUARTERS ON LONG ISLAND EAST OF NEW YORK CITY AND UNCOVERED A HUGE SCANDAL MILLIONS OF DOLLARS MISSING ALLEGEDLY PILFERED BY REVERE OWNERS ROBERT AND SUSANNA SCARETTA WHOM FEDERAL AUTHORITIES HAVE ACCUSED OF BANK FRAUD AND THEFT THEY HAVE BEEN ARRAIGNED AND RELEASED ON BAIL AND FACE A PRELIMINARY HEARING MARCH 3 THEY HAVEN'T BEEN INDICTED IN TERMS OF SHEER DOLLARS IT COULD TURN OUT TO BE ONE OF THE LARGEST HEISTS OF THE CENTURY PULLED OFF BY THE ARMOREDTRUCK COMPANY ITSELF OF THE 846 MILLION THAT BANKS SAY THEY HAD IN STORAGE AT REVERE ONLY 45 MILLION HAD BEEN DISCOVERED AS OF YESTERDAY WITH THE COUNT VIRTUALLY COMPLETE SAYS A PERSON CLOSE TO THE INVESTIGATION DETERMINING THE PRECISE AMOUNT IS HARD BECAUSE REVERE ONE OF THE NATION'S 10 LARGEST ARMOREDTRUCK COMPANIES IS A MESS INVESTIGATORS SAY THEY SAY THEY HAVE FOUND ACCOUNTING RECORDS TO BE MISSING OR DESTROYED AND MOUNDS OF CASH OWNERSHIP UNDETERMINED STREWN ABOUT THE FBI WHICH HAS SAID MR AND MRS SCARETTA RAN UP GAMBLING DEBTS ALSO IS LOOKING INTO THE POSSIBILITY THAT REVERE'S FASTGROWING BUSINESS WAS A MONEYLAUNDERING OPERATION FOR ILLEGAL GAMBLING PROCEEDS FRANCIS CASALE AND CHARLES FAMIGHETTI ATTORNEYS FOR THE COUPLE DID NOT RETURN PHONE CALLS BUT MR FAMIGHETTI HAS BEEN QUOTED IN THE PRESS AS SAYING THAT THE SCARETTAS ARE UNAWARE OF ANY MISSING FUNDS AND THAT ANY MONEY THAT MIGHT BE ABSENT WOULD BE MISSING ONLY BECAUSE OF EMPLOYEE THEFT OR MINOR NEGLIGENCE THE DAY BEFORE THE FEDERAL RAID REVERE EXECUTIVES CANCELED ALL PICKUPS AND DELIVERIES AND ORDERED ALL DRIVERS TO RETURN TO HOME BASE EFFECTIVELY SHUTTING DOWN THE COMPANY BESIDES LEAVING MILLIONS OF DOLLARS IN LIMBO AND 700 PEOPLE OUT OF WORK THE COLLAPSE OF REVERE IS PROVING TO BE AN EMBARRASSMENT FOR SOME OF THE NATION'S LARGEST BANKS AFTER ALL THEY ENTRUSTED TENS OF MILLIONS OF DOLLARS TO A FIRM THAT PROVIDED POOR RECORDKEEPING AND EVEN WORSE PROTECTION ONE BANK THE US ARM OF BRITAIN'S NATIONAL WESTMINSTER BANK CONTINUED DOING BUSINESS WITH REVERE EVEN AFTER A SHORTFALL OF NEARLY 6 MILLION WAS DETECTED LAST MAY NOW AFTER SIFTING THROUGH THE REMAINS OF REVERE CITICORP'S CITIBANK SAYS IT IS MISSING MORE THAN 11 MILLION THAT WAS SUPPOSED TO HAVE BEEN STORED THERE AND MARINE MIDLAND BANKS IS WONDERING HOW MUCH IS LEFT OF THE 348 MILLION REVERE WAS SUPPOSED TO HAVE OF ITS MONEY THE BANKS SHOULD HAVE KNOWN THEY DIDN'T DO THEIR DUE DILIGENCE SAYS FRANCIS BUD MULLEN A FORMER FBI OFFICIAL WHO CONDUCTED AN INVESTIGATION OF REVERE LAST MONTH FOR THE LLOYDS UNDERWRITING GROUP AN EXECUTIVE OF A RIVAL ARMOREDTRUCK COMPANY ASKS WHY WEREN'T THE BANKS IN THERE COUNTING THEIR MONEY REGULARLY THE BANKS MAINTAIN THEY WERE PROPERLY VIGILANT INVESTIGATORS SAY REVERE WAS ABLE TO SKIM MONEY BECAUSE OF THE LARGE INVENTORY OF CASH IT KEPT ON HAND FOR THE BANKS THAT WERE ITS MAIN CUSTOMERS THE CASH WAS USED TO MEET THE NEEDS OF THE BANKS' MERCHANT CUSTOMERS AND TO DISTRIBUTE AMONG THE BANKS' BRANCHES AND AUTOMATEDTELLER MACHINES BUT UNLIKE OTHER ARMOREDTRUCK COMPANIES REVERE SAY INVESTIGATORS COMMINGLED THE FUNDS IT HELD FOR THE BANKS RATHER THAN KEEPING EACH BATCH CAREFULLY SEGREGATED AS LONG AS ALL BANK CUSTOMERS DIDN'T SHOW UP AT THE SAME TIME ENOUGH MONEY COULD BE FOUND TO SATISFY THE AUDITORS OF ANY ONE OF THEM REVERE AFTER PICKING UP CASH RECEIPTS FROM MORE THAN 850 MERCHANTS AND COUNTING AND CREDITING THE MONEY TO ACCOUNTS WOULD KEEP THE PROCEEDS FOR UP TO A WEEK BEFORE DELIVERING THEM TO THE FEDERAL RESERVE BANK RAPID GROWTH IN REVERE'S BUSINESS GAVE IT THE ABILITY TO COVER ANY SHORTAGES WITH NEW FUNDS INDUSTRY EXPERTS EXPLAIN INVESTIGATORS HAVEN'T ACCUSED REVERE OF THIS PRACTICE HOWEVER SOME CRITICS CALL THE CASE AN ARGUMENT FOR INCREASED REGULATION OF THE ARMOREDTRUCK INDUSTRY MR SCARETTA A FORMER SELFEMPLOYED AUTO MECHANIC BEGAN REVERE IN 1979 AFTER TAKING POSSESSION OF A TRUCK WHOSE OWNER COULDN'T PAY THE REPAIR BILL HE WAS JOINED BY HIS WIFE WHO WAS LISTED ON A RECENT DUN & BRADSTREET REPORT AS A HOMEMAKER PRIOR TO THE FORMATION OF THE COMPANY AND BY HIS FATHER PETER WHO HAD WORKED FOR AMTRAK FROM 1954 TO 1979 TWO YEARS LATER MR SCARETTA BEGAN BUYING ARMORED TRUCKS FROM LENCO INDUSTRIES INC A PITTSFIELD MASS MANUFACTURER THAT WAS STILL BUILDING VEHICLES FOR REVERE AS OF LAST WEEK HE WANTED TO BE KING OF THE HILL IF NOT BIGGEST IN THE US CERTAINLY IN THE EAST SAYS LEN LIGHT A VICE PRESIDENT OF LENCO MR LIGHT AND EXECUTIVES FROM SEVERAL LEASING COMPANIES THAT FINANCED ITS TRUCK PURCHASES SAY REVERE PAID ITS BILLS ON TIME REVERE'S FLEET GREW TO 212 VEHICLES LAST YEAR FROM 48 IN 1990 BUT ITS BARGAINBASEMENT PRICING AND AGGRESSIVE ACQUISITION OF OTHER SECURITY COMPANIES MADE COMPETITORS SUSPICIOUS I LOST A LOT OF BUSINESS TO REVERE BECAUSE I COULD NOT AFFORD TO GO DOWN IN PRICE SAYS HERMAN KIP KOEHLER HEAD OF COIN DEPOT INC A NEW YORK COMPETITOR JOHN PRATT PRESIDENT OF FEDERAL ARMORED EXPRESS INC A PRIVATELY OWNED COMPANY BASED IN NEW YORK ADDS WHEN REVERE WAS ONLY IN NEW YORK IT WAS JUST A NUISANCE BUT AS IT STARTED COMPETING THROUGHOUT NEW ENGLAND INDEPENDENT COMPANIES THAT DOMINATED MARKET SHARE DIDN'T TAKE LIGHTLY TO THE LOW PRICES ASIDE FROM WELLS FARGO ARMORED SERVICE CORP AND BRINKS INC WHICH ARE SUBSIDIARIES OF LARGE COMPANIES MOST OF THE INDUSTRY WHICH HAS ABOUT 1 BILLION A YEAR IN REVENUE IS COMPOSED OF SMALL REGIONAL FIRMS THE OTHER INDEPENDENTS FELT HE WAS SABOTAGING THEM WITH HIS RATES AS MUCH AS HALF AS LOW AS COMPETITORS' SAYS MR PRATT THEY STARTED LOOKING AT PUBLIC INFORMATION LIKE TAX RECORDS TRYING TO FIGURE HOW HE COULD MAKE MONEY AND EXPAND WHILE CHARGING SUCH RATES MR PRATT SAYS HE PERSONALLY HAS NO REASON TO SUSPECT MR SCARETTA OF BEING DISHONEST THE TWO HAD A FALLING OUT IN THE LATE 1980S WHEN THEY WERE PARTNERS IN A NEW JERSEY SECURITY FIRM THAT HAS SINCE BECOME PART OF REVERE BUT THE ISSUE THEN WAS OVER HOW HARD MR SCARETTA WAS WORKING THE STAFF HE WOULD THINK NOTHING OF HAVING THEM WORK 17 HOURS AND SAY GO HOME SEE YOU IN A FEW HOURS' SAYS MR PRATT THE 38YEAROLD MR SCARETTA WAS DRIVING HIMSELF AND HIS STAFF TO ADD MORE AND MORE BUSINESS FROM BANKS IN THE PAST 10 YEARS BANKS HAVE INCREASINGLY CONTRACTED OUT THE PICKUP COUNTING AND DELIVERY OF MONEY FROM LARGE RETAIL OUTLETS INSTEAD OF LETTING THEIR BRANCHES TAKE SUCH DEPOSITS OR RUNNING THEIR OWN COUNTING OPERATIONS FOR LARGE CASH DEPOSITS THEY CONTRACT WITH AN ARMOREDCAR COMPANY THEN CHARGE THE MERCHANT ONE PRICE FOR THE PICKUP AND DELIVERY SERVICE AND ANOTHER FOR WHAT IS CALLED THE FINE COUNTING REVERE RODE THAT INDUSTRY TREND GROWING TO MORE THAN 20 MILLION IN REVENUE LAST YEAR FROM LESS THAN 4 MILLION IN 1990 ACCORDING TO DEPARTMENT OF TRANSPORTATION FILINGS AND AN ACCOUNTANT'S REPORT LATE LAST YEAR THE NEW YORK FEDERAL RESERVE ACCEPTED BIDS FOR DELIVERY OF A LARGE SHIPMENT FROM NEW YORK TO BUFFALO REVERE BID 1700 OTHER BIDS CAME IN BETWEEN 3000 AND 12000 THAT'S WHEN REVERE'S RIVALS DECIDED TO TAPE THE COMPANY IN ACTION THE TAPE OF THE 100 MILLION TRANSPORT WAS AIMED AT DEMONSTRATING TO LLOYDS THE EASE WITH WHICH SOMEONE COULD WHACK 'EM SAYS MR KOEHLER THE COMPETITOR HE SAYS HE KNOWS WHAT WENT ON IN THE VIDEOTAPE THOUGH HIS FIRM WASN'T A PARTY TO IT THOMAS ALDRIDGE A PRINCIPAL IN JANSON & GREEN THE LLOYDS OF LONDON UNDERWRITER OF REVERE'S POLICY SAYS THE VIDEOTAPE PROMPTED HIS FIRM TO HIRE INVESTIGATOR MR MULLEN MR MULLEN'S FINDINGS SHOWED THAT THE OPERATION WAS NOT BEING CARRIED OUT IN A WAY WE CONSIDER APPROPRIATE FOR THE ENORMOUS AMOUNT OF MONEY BEING HANDLED SAYS MR ALDRIDGE AMONG OTHER THINGS THE INVESTIGATION TURNED UP INTERESTING DISCOVERY EVIDENCE TAKEN IN A LAWSUIT AGAINST REVERE AND NATWEST BY IBI SECURITY SERVICE INC A COLLAPSED SECURITY FIRM ON LONG ISLAND THAT CLAIMS THE TWO CONSPIRED TO PUT IT OUT OF BUSINESS IBI COLLAPSED AFTER NATWEST DISCOVERED A 27 MILLION SHORTFALL IN IBI'S ACCOUNT AND TRANSFERRED ALL OF THE BANK'S ATM BUSINESS TO REVERE TAKING IBI'S ATM DIVISION STAFF WITH IT ACCORDING TO JOHN C MALLON IBI'S FORMER VICE CHAIRMAN THE SUIT WAS FILED IN US BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF NEW YORK AND IS PENDING NATWEST AND REVERE DENIED THE CHARGES IN TRYING TO SHOW THAT REVERE AND NATWEST HAD MORE THAN AN ARM'S LENGTH RELATIONSHIP IBI LAWYER LOUIS MANGONE ASKED NATWEST ABOUT A SURPRISE AUDIT OF REVERE IT CONDUCTED LAST MAY THE AUDIT TEAM ARRIVED AT REVERE HEADQUARTERS AT 3 PM ON MAY 18 ACCORDING TO COURT DOCUMENTS BUT EVEN THOUGH FIRMS SUCH AS REVERE ARE SUPPOSED TO BE AVAILABLE FOR A SURPRISE AUDIT AT ANY TIME NATWEST WAS NOT ALLOWED TO BEGIN COUNTING UNTIL OR AFTER 4 PM AN AUDITTEAM MEMBER SAID PRESENTED WITH A LARGE INVENTORY OF COINS DESCRIBED AS EXCLUSIVELY BELONGING TO NATWEST THE AUDITORS FOUND EVIDENCE TO THE CONTRARY FILES FOR INSTANCE BEARING THE NAMES OF OTHER BANKS ACCORDING TO COURT DOCUMENTS MOREOVER WHEN ANOTHER REVERE CUSTOMER NEEDED MONEY REVERE OFFICIALS ARE SAID TO HAVE TRIED REMOVING SOME OF THE INVENTORY THAT ONLY MINUTES BEFORE THEY HAD SAID BELONGED EXCLUSIVELY TO NATWEST IN THE END THE NATWEST AUDITORS DISCOVERED A SHORTFALL OF ABOUT 6 MILLION WHICH REVERE COVERED BY THE NEXT DAY ACCORDING TO THE BANK THE RESULT OF THE SURPRISE AUDIT SHOULD HAVE MADE THE BANK SUSPICIOUS MAINTAINS MR MALLON HE SAYS NATWEST AND REVERE HAVE FAILED TO PROVIDE ANY DOCUMENTATION AS TO WHY THERE WAS A SHORTAGE AND HOW NATWEST WAS REIMBURSED NATWEST MAINTAINS THAT THE DISCREPANCY AT REVERE WAS DUE TO A TRANSACTION IN PROCESS INVOLVING THE SALE OF ITS COINS TO ANOTHER PARTY THAT HAD NOT YET BEEN CREDITED TO THE NATWEST ACCOUNT EVEN SO NATWEST BEGAN REDUCING ITS THEN 30 MILLION HELD AT REVERE DOWN TO ROUGHLY 6 MILLION AT THE TIME OF THE POLICE SEIZURE LAST WEEK A NATWEST SPOKESMAN SAYS THE BANK HAS BEEN REDUCING ITS INVENTORY AT ALL OF ITS OUTSIDE SECURITY VENDORS IN REACTION TO MR MULLEN'S INVESTIGATION LLOYDS INFORMED REVERE THAT IT WAS CANCELING REVERE'S POLICY EFFECTIVE FEB 21 MR SCARETTA SCRAMBLED TO LINE UP OTHER INSURANCE AND EVEN MADE AN UNSUCCESSFUL APPEAL FOR HELP FROM REPUBLICAN SEN ALPHONSE D'AMATO BUT WOULDN'T LET ANY OF THE POTENTIAL CARRIERS CONDUCT A THOROUGH INVESTIGATION BEFORE DOING SO SAYS MR ALDRIDGE OF JANSON & GREEN NEXT THE UNDERWRITER GROUP'S BROKER IN NEW YORK SENT LETTERS TO THE BANKS THAT DID BUSINESS WITH REVERE INFORMING THEM THAT COVERAGE WOULD BE CANCELED ON TUESDAY FEB 9 LAWYERS FOR HALF A DOZEN BANKS SHOWED UP AT REVERE HEADQUARTERS DEMANDING THAT THEY BE ALLOWED TO TAKE POSSESSION OF THEIR MONEY CITIBANK EVEN HAD A BRINKS ARMORED TRUCK STANDING BY AT THE SUFFOLK COUNTY POLICE HEADQUARTERS A CALL FOR ASSISTANCE CAME FROM A LIEUTENANT WHO SAID I HAVE A BUILDING SURROUNDED BY LAWYERS MR SCARETTA'S LAST ATTEMPT TO KEEP HIS BUSINESS GOING WAS A FOURHOUR ARGUMENT WITH THE LAWYERS LED BY CITIBANK'S IT ENDED WITH HIM THROWING CITIBANK OFF THE PREMISES IN A HEATED ARGUMENT SAYS A PERSON CLOSE TO THE SUFFOLK COUNTY POLICE DEPARTMENT HE ADDS THAT WHILE SOME OF THE CITIBANK PEOPLE WENT IN SEARCH OF A COURT ORDER TO ENTER THE BUILDING OTHERS REMAINED BEHIND AND TRAILED MR SCARETTA TO HIS NEARBY HOME WHERE THEY WATCHED HIM AND ANOTHER PERSON PILE BOXES INTO TWO CARS A POLICE INVESTIGATOR SAYS THE CARS THEN DROVE AWAY EVENTUALLY LOSING THEIR PURSUERS CITIBANK DIDN'T RESPOND TO INQUIRIES ABOUT THIS ACCOUNT ON THAT SAME TUESDAY ACCORDING TO A STATEMENT BY FBI AGENT BRUCE BRADY SUFFOLK COUNTY POLICE RECEIVED A PHONE CALL FROM SOMEONE WHO IDENTIFIED HIMSELF AS THE BROTHER OF THE NIGHT MANAGER AT REVERE THE CALLER'S BROTHER WHO WAS ALWAYS PRESENT IN THE VAULT AS ANY MONEY WAS DELIVERED AND COUNTED WAS TOLD THAT EVENING TO LEAVE THE AREA PRIOR TO THE COUNT AND STORAGE OF THE CURRENCY THE CALLER SAID A PERSON CLOSE TO THE INVESTIGATION SAYS IT IS SUSPECTED THAT MONEY WAS TAKEN OUT OF THE BUILDING WHILE CITIBANK'S LAWYERS WERE SEEKING A COURT ORDER AT THE SAME TIME REVERE'S PLANE NORMALLY USED TO CARRY AROUND MONEY HAD FILED A FLIGHT PLAN FOR DEPARTURE TUESDAY NIGHT THIS PERSON SAYS IT IS UNCLEAR WHETHER IT EVER TOOK OFF THE WARRANT FOR THE ARREST OF THE SCARETTAS WENT OUT THE NEXT DAY THEY TURNED THEMSELVES IN TO POLICE AND ARE NOW OUT ON BAIL THE INVESTIGATION HAS RAISED THE POSSIBILITY THE COUPLE USED BANK MONEY TO FUND EXPANSION OF THEIR BUSINESS AND TO PAY OFF GAMBLING DEBTS A LAWENFORCEMENT OFFICIAL SAYS MR SCARETTA HAD A LINE EVERYWHERE INCLUDING CASINOS IN ATLANTIC CITY AND FOR SPORTS GAMBLING WITH ILLEGAL BOOKIES MR ALDRIDGE OF JANSON & GREEN SAYS HE HAS NO PERSONAL KNOWLEDGE OF ANY CRIMES COMMITTED IF ANY WRONGDOING SHOULD BE SHOWN HE ADDS IT IS UNCLEAR WHETHER HIS UNDERWRITING SYNDICATE WOULD BE LIABLE FOR LOSSES IT ENCOMPASSES MANY INVESTORS AND IS BUT ONE OF 30 SYNDICATES BACKING THE 100 MILLION POLICY THE BANKS MAINTAIN THEY ARE FULLY COVERED IN ANY EVENT AND THEY DENY CHARGES THAT THEY WERE REMISS IN THEIR VIGILANCE A SPOKESMAN FOR FLEET FINANCIAL WHICH SAYS IT HAS A 13 MILLION EXPOSURE SAYS IT CHECKED INTO ANONYMOUS TIPS ABOUT THE FIRM LAST YEAR BUT COULD FIND NO EVIDENCE OF A PROBLEM A SPOKESMAN FOR MARINE MIDLAND SAYS HIS BANK CONDUCTED THOROUGH AND ONGOING DUE DILIGENCE BEFORE CONTRACTING WITH REVERE LAST JUNE AND ONGOING CHECKS WHICH FOUND NO EVIDENCE OF ANY PROBLEMS 9302170096 930217 BUSINESS BRIEF ARMCO INC FOURTHQUARTER DEFICIT GREW DUE TO CHARGE STEEL LOSSES ARMCO INC REPORTED A NET LOSS OF 3767 MILLION OR 368 A SHARE FOR THE FOURTH QUARTER LARGELY DUE TO A RESTRUCTURING CHARGE AND HUGE LOSSES AT ITS HALFOWNED STEEL COMPANY THE PARSIPPANY NJ COMPANY TOOK A 188 MILLION CHARGE TO CUT ITS WORK FORCE BY 1400 OR 12 ITS SHARE OF LOSSES AT ARMCO STEEL CO WHICH IT OWNS WITH KAWASAKI STEEL CORP AMOUNTED TO 180 MILLION ARMCO'S FOURTHQUARTER LOSS WIDENED FROM 2415 MILLION OR 275 A SHARE A YEAR EARLIER THAT INCLUDED CHARGES THAT REDUCED EARNINGS BY 201 MILLION AND EQUITY LOSSES FROM ARMCO STEEL OF 303 MILLION 9302170095 930217 INTERNATIONAL BRIEF FLETCHER CHALLENGE LTD FIRSTHALF PROFIT ROSE 27 TO 789 MILLION ON GAINS FLETCHER CHALLENGE LTD A NEW ZEALAND FORESTRY AND RESOURCES COMPANY SAID PROFIT ROSE 27 IN ITS FIRST HALF ENDED DEC 31 COMPARED WITH A YEAR EARLIER THE LATEST FISCAL PERIOD'S PROFIT OF 1535 MILLION NEW ZEALAND DOLLARS US789 MILLION INCLUDES ONETIME GAINS OF NZ47 MILLION FROM TRANSACTIONS INVOLVING THE COMPANY'S INTEREST IN ENERGY UTILITY NATURAL GAS CORP A YEAR EARLIER THE COMPANY POSTED PROFIT OF NZ1211 MILLION SALES SLIPPED 5 TO NZ495 BILLION FROM NZ521 BILLION SIR RONALD TROTTER FLETCHER CHALLENGE'S CHAIRMAN SAID THE RESULTS IN THE LATEST PERIOD ARE IN LINE WITH THE COMPANY'S EXPECTATIONS HUGH FLETCHER CHIEF EXECUTIVE SAID THE COMPANY EXPECTS TO BENEFIT FROM IMPROVING ECONOMIC ACTIVITY IN THE US AND UNITED KINGDOM IN ITS CURRENT FISCAL HALF ENDING JUNE 30 9302170094 930217 BUSINESS BRIEF CIGNA CORP FOURTHPERIOD NET FELL 54 DUE TO CATASTROPHE LOSSES CIGNA CORP PHILADELPHIA SAID FOURTHQUARTER EARNINGS FELL 54 PARTLY BECAUSE OF LARGER CATASTROPHERELATED LOSSES THE LIFE AND PROPERTY/CASUALTY INSURER SAID IT EARNED 50 MILLION OR 70 CENTS A SHARE COMPARED WITH 108 MILLION OR 151 A SHARE IN THE YEAREARLIER PERIOD REVENUE WAS FLAT AT 36 BILLION RESULTS WHICH DIDN'T SURPRISE ANALYSTS INCLUDED LOSSES FROM HURRICANES ANDREW AND INIKI AND LOSSES FROM THE DECEMBER STORM IN THE NORTHEAST FOR THE FULL YEAR CIGNA EARNED 311 MILLION OR 434 A SHARE DOWN FROM 449 MILLION OR 628 A SHARE IN 1991 REVENUE FELL SLIGHTLY TO 139 BILLION FROM 142 BILLION THE COMPANY ALSO SAID IT TOOK A 6 MILLION FOURTHQUARTER CHARGE FOR AN ACCOUNTING RULE CHANGE IN CONNECTION WITH FORECLOSED ASSETS 9302170093 930217 WHO'S NEWS LANDS' END INC LANDS' END INC DODGEVILLE WIS RONALD T CAMPO 44 YEARS OLD FORMERLY PRESIDENT OF REEBOK INTERNATIONAL LTD'S APPAREL DIVISION WAS NAMED TO THE NEW POST OF VICE PRESIDENT NEW BUSINESS DEVELOPMENT OF THIS MAILORDER CLOTHING CONCERN 9302170092 930217 BUSINESS BRIEF FIBREBOARD CORP CALIFORNIA CONCERN SWINGS TO PROFIT FOR 4TH QUARTER FIBREBOARD CORP REPORTED A SMALL FOURTHQUARTER PROFIT UP FROM A YEARAGO LOSS CITING SPECIAL CHARGES AND GAINS THE CONCORD CALIF WOOD AND INSULATIONPRODUCTS CONCERN POSTED NET INCOME OF 85000 OR TWO CENTS A SHARE COMPARED WITH A NET LOSS OF 292 MILLION OR 721 A SHARE IN THE YEARAGO QUARTER FOURTHQUARTER SALES FELL 93 TO 544 MILLION FROM 60 MILLION IN THE 1991 PERIOD FIBREBOARD'S 1991 FOURTHQUARTER RESULTS INCLUDED PRETAX CHARGES OF 34 MILLION FOR ASBESTOSRELATED COSTS AND OTHER UNUSUAL ITEMS THE 1992 FOURTH QUARTER INCLUDED A PRETAX PENSION GAIN OF 24 MILLION FOR THE YEAR FIBREBOARD REPORTED NET INCOME OF 94 MILLION OR 230 A SHARE COMPARED WITH A NET LOSS OF 439 MILLION OR 1099 A SHARE IN 1991 SALES ROSE 24 TO 2397 MILLION FROM 2341 MILLION 9302170091 930217 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY'S POWERFUL IG METALL UNION DEMANDED THAT THE GERMAN GOVERNMENT AND THE EUROPEAN COMMUNITY INTERVENE QUICKLY TO RESCUE THE STEEL INDUSTRY CALLING FOR A NATIONWIDE MARCH ON BONN NEXT MONTH TO PROTEST THE PROJECTED LOSS OF 40000 JOBS IN GERMANY'S STEEL SECTOR IG METALL THE COUNTRY'S LARGEST UNION URGED THE EC TO SET MINIMUM PRICES AND PRODUCTION QUOTAS MARKET PRICES ARE 30 BELOW 1990 LEVELS AND THE EUROPEAN INDUSTRY HAS OVERCAPACITY OF ABOUT 30 MILLION TONS OF CRUDE STEEL IG METALL REJECTED EC PROPOSALS THAT COULD OFFER THE INDUSTRY NONBINDING PRODUCTION GUIDELINES BUT ESSENTIALLY LEAVE ANY RESTRUCTURING TO THE STEELMAKERS THE STEEL SECTOR HAS 380000 WORKERS AND IG METALL SAID THAT EVERY STEEL JOB LOST CAUSES 17 JOB CUTS IN RELATED INDUSTRIES A PROPOSAL BY GERMANY'S OPPOSITION SOCIAL DEMOCRATS TO INTRODUCE A UNITYTAX SURCHARGE IN JULY COULD THWART THE CONSENSUS CHANCELLOR HELMUT KOHL NEEDS FOR HIS NATIONAL SOLIDARITY PACT INTENDED TO STABILIZE GERMAN FINANCES UNDER THE PROPOSED PACT MR KOHL AND POLITICIANS WILL TRY NEXT MONTH TO AGREE ON SPENDING AND TAX PRIORITIES MR KOHL WOULD LIKE TO FASHION A THREEYEAR POLICY THAT CALLS FOR COMMON SACRIFICES BY BUSINESS LABOR TAXPAYERS AND THE FEDERAL AND STATE GOVERNMENTS HIS AIM IS TO SPEED EASTERN GERMANY'S RECOVERY CONTAIN GERMANY'S RUNAWAY BUDGET DEFICITS AND INCREASE REVENUE TO PAY DEBT POLITICAL CORRUPTION SINCE 1980 HAS COST ITALY BETWEEN 10 BILLION AND 20 BILLION AND ACCOUNTS FOR AS MUCH AS 15 OF THE BUDGET DEFICIT A STUDY FOUND THE LUIGI EINAUDI RESEARCH CENTER IN TURIN SAID THE PRIVATE SECTOR TO COVER BRIBES ROUTINELY DEMANDED BY POLITICIANS BUILD THOSE SUMS INTO SUPPLIES AND SERVICES SOLD TO THE GOVERNMENT AND IT SAID THE VALUE OF PUBLIC INVESTMENTS WAS REDUCED BECAUSE POLITICIANS DIRECTED THEM TO AREAS WHERE MONEY COULD BE RAKED OFF ITALY'S DEFICIT GREW TO 112 BILLION LAST YEAR THE HIGHEST IN THE EUROPEAN COMMUNITY AS CORRUPTION COSTS INCREASED THE HIGHINTEREST BONDS THE GOVERNMENT HAD TO ISSUE TO FINANCE THE GAP THE STUDY SAID THOUGH 60 OF JAPANESE CONSUMERS BELIEVE DOMESTIC BEEF IS TOO EXPENSIVE AT PRICES A THIRD MORE THAN IMPORTS AND CAN'T TELL ANY DIFFERENCE IN TASTE AND TEXTURE THEY WORRY ABOUT THE SAFETY OF THE IMPORTED BEEF OF 3900 PEOPLE SURVEYED LAST SEPTEMBER BY THE ECONOMIC PLANNING AGENCY 24 SAID THEY HAD INCREASED PURCHASES OF IMPORTED BEEF BUT 57 QUESTIONED ITS SAFETY STANDARDS AND EFFICIENCY OF TESTS MANY CITED CONCERNS ABOUT SIDE EFFECTS OF FOOD ADDITIVES AND CHEMICALS SRI LANKAN TOURISM IS RECOVERING STRONGLY FROM THE EFFECTS OF A CIVIL WAR LAST YEAR ARRIVALS ON THE INDIAN OCEAN ISLAND ROSE 24 TO 393669 FROM A YEAR EARLIER AND COULD TOP 450000 THIS YEAR BREAKING THE 1982 RECORD OF 407230 SRI LANKA HAS 9900 HOTEL ROOMS AND IS TO ADD 4000 IN THE NEXT FEW YEARS IN 60 PROPOSED HOTEL PROJECTS IN 1987 A REBEL CAMPAIGN OF VIOLENCE AND STRIKES BY TAMIL SEPARATISTS AS WELL AS GOVERNMENT COUNTERATTACKS STARTED A TOURISM SLUMP THE CONTINUING STRIFE OCCURS MAINLY IN THE NORTH AND EAST RARELY AFFECTING COLOMBO THE CAPITAL OR BEACH RESORTS FINLAND PREDICTED ITS ECONOMIC CRISIS WILL GET EVEN WORSE THIS YEAR ESPECIALLY WITH RECESSION SPREADING THROUGHOUT EUROPE FINLAND IS ALREADY REELING FROM LAST YEAR'S 15 JUMP IN BANKRUPTCIES TO 7000 RECORD HIGH UNEMPLOYMENT HUGE FOREIGN DEBT DEEP BANK LOSSES AND A DROP IN PRODUCTION THE JOBLESS RATE IS EXPECTED TO GROW TO 20 THIS YEAR FOREIGN DEBT TO RISE 6 TO 250 BILLION MARKKAA 4242 BILLION AND INTEREST PAYMENTS ON THAT DEBT TO REACH 27 BILLION MARKKAA THOUGH EXPORTS ROSE 16 LAST YEAR GROSS DOMESTIC PRODUCT IS EXPECTED TO REMAIN FLAT IN 1993 AFTER FALLING 35 LAST YEAR AND 62 IN 1991 AUSTRALIAN TELEVISION BEGAN SATELLITE BROADCASTS TO A REGION THAT EXTENDS FROM PAPUA NEW GUINEA TO CHINA THE AUSTRALIAN TELEVISION INTERNATIONAL SERVICE PRODUCED BY THE GOVERNMENTFUNDED AUSTRALIAN BROADCASTING CORP INCLUDES NEWS AND CURRENT AFFAIRS FOCUSING ON SOUTHEAST ASIA AND PROGRAMS ON AUSTRALIAN CULTURE THE SAME SATELLITE BEAMS TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK TO THE REGION THE AUDIENCE IS COMPOSED OF PEOPLES THAT VARY GREATLY IN CULTURE RELIGION AND POLITICS AND WHO LIVE IN SOME COUNTRIES THAT SUPPRESS INFORMATION OR ARE OFFENDED BY WESTERN CULTURAL ATTITUDES THUS ATVI SAID IT WOULD CENSOR ITS PROGRAMS EXCEPT FOR NEWS REPORTING TO AVOID OFFENDING NATIONS SUCH AS INDONESIA AND CHINA NINE OF THE 15 NATIONS THAT CAN RECEIVE THE SATELLITE SIGNAL HAVE RESTRICTED DISTRIBUTION OF SATELLITE RECEPTION DISHES RUSSIA'S CENTRAL BANK WILL RAISE INTEREST RATES ON LOANS TO STATE ENTERPRISES TO 100 FROM 80 EFFECTIVE MARCH 1 LENDING TO UNPROFITABLE STATE COMPANIES IS PARTLY BLAMED FOR INFLATION RUNNING AT MORE THAN 2000 A YEAR ERODING THE RUBLE'S VALUE AND COMPLICATING FREEMARKET REFORMS THE RUSSIAN DAILY ROSSIISKIYE VESTY REPORTED THAT PROSTITUTES IN THE CITY OF PERM ACCEPT AS PAYMENT THE GOVERNMENT VOUCHERS DISTRIBUTED FREE TO ENABLE CITIZENS TO BUY STOCKS IN PRIVATIZED COMPANIES 9302170090 930217 INTERNATIONAL BRITISH AIRWAYS PROFIT IN 3RD PERIOD PLUNGED BY 80 TO 28 MILLION LONDON BATTERED BY THE POUND'S DECLINE AND TOUGH COMPETITION BRITISH AIRWAYS PLC REPORTED PRETAX PROFIT PLUNGED 80 TO 20 MILLION 28 MILLION IN THE THIRD QUARTER ENDED DEC 31 THE AIRLINE BLAMED MORE THAN HALF THE 80 MILLION DROP ON THE SHORTTERM IMPACT OF THE DECLINE OF THE POUND SINCE THE BRITISH CURRENCY'S EXIT FROM THE EUROPEAN EXCHANGERATE MECHANISM IN SEPTEMBER BUT MORE WORRISOME FOR THE LONG RUN IS THAT THE CARRIER'S YIELD OR PROFIT ON EACH PASSENGER FELL 51 THE NEWS CAUSED BRITISH AIRWAYS STOCK TO FALL THREE PENCE TO 276 PENCE ON THE LONDON STOCK EXCHANGE YESTERDAY NONETHELESS THE QUARTER'S RESULTS WERE AT THE TOP OF THE RANGE FORECAST BY ANALYSTS AND BRITISH AIRWAYS IS LIKELY TO BE AMONG THE FEW IF NOT THE ONLY MAJOR EUROPEAN AIRLINES TO REPORT A PROFIT FOR ITS FULL FISCAL YEAR IN THE LONG RUN THE STERLING DEVALUATION IS EXPECTED TO HELP THE UK'S NO 1 AIRLINE SOME ANALYSTS REDUCED THEIR FULLYEAR FORECASTS AFTER THE PROFIT REPORT BUT THE GENERAL RANGE PREDICTED BY OBSERVERS REMAINS A PRETAX PROFIT OF 200 MILLION TO 230 MILLION FOR THE NINE MONTHS BRITISH AIRWAYS REPORTED A PRETAX PROFIT OF 247 MILLION COMPARED WITH 285 MILLION PROFIT AFTER TAX OR NET INCOME WAS 222 MILLION OR 265 PENCE A SHARE ON A FULLY DILUTED BASIS THE LOWER YIELDS COMBINED WITH THE AIRLINE'S PURCHASE OF A 199 STAKE IN USAIR GROUP INC AND ITS OUTRIGHT TAKEOVER OF DANAIR OF THE UK CAUSED BRITISH AIRWAYS TO SWING TO A NET CASH OUTFLOW OF 183 MILLION FROM A NET INFLOW OF 399 MILLION A YEAR AGO 9302170089 930217 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 4 HIGH 3 3/8 LOW 3 1/2 NEAR CLOSING BID 3 5/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 310 60 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 320 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 318 30 DAYS 319 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 268 TWO MONTHS 270 THREE MONTHS 281 SIX MONTHS 301 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 310 THREE MONTHS 320 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 90 DAYS 309 120 DAYS 314 150 DAYS 318 180 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 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 3/4 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 744 60 DAYS 754 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 746 60 DAYS 755 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 540 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 285 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302170088 930217 BUSINESS BRIEF COCACOLA ENTERPRISES INC BOTTLER'S 4THQUARTER LOSS NARROWED TO 31 MILLION COCACOLA ENTERPRISES INC REPORTED THAT ITS FOURTHQUARTER LOSS NARROWED FROM A YEAR EARLIER AND THAT ITS OPERATING PROFIT IMPROVED THE ATLANTA COMPANY A BOTTLER OF COCACOLA PRODUCTS SAID THE LOSS TOTALED 31 MILLION OR 24 CENTS A SHARE COMPARED WITH A PROFORMA LOSS OF 122 MILLION OR 94 CENTS A SHARE A YEAR EARLIER THE 1992 FIGURES REFLECT TWO ACCOUNTING CHANGES RELATED TO RETIREE HEALTH BENEFITS AND TAXES THE 1991 FIGURES WERE RESTATED TO INCLUDE THE RESULTS OF JOHNSTON COCACOLA BOTTLING GROUP INC WHICH COCACOLA ENTERPRISES ACQUIRED IN DECEMBER 1991 EXCLUDING ONETIME CHARGES THE COMPANY HAD ADJUSTED OPERATING PROFIT OF 87 MILLION UP FROM 35 MILLION A YEAR EARLIER REVENUE CLIMBED ALMOST 8 TO 128 BILLION FROM A PROFORMA 119 BILLION THE RESULTS WHICH WERE IN LINE WITH EXPECTATIONS REFLECTED GAINS IN PRICING AND VOLUME IN THE QUARTER COCACOLA ENTERPRISES NOTED THAT NET PRICE PER UNIT INCREASED ABOUT 4 IN THE PERIOD FROM 1991'S PROFORMA RESULTS AND CASE VOLUME IN THE 1992 FOURTH QUARTER ROSE ABOUT 05 9302170087 930217 INSIDER TRADING SPOTLIGHT BASED ON ACTUAL TRANSACTION DATES IN REPORTS RECEIVED THROUGH FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9302170086 930217 INTERNATIONAL FRANCE AGAIN CONSIDERS CASH INFUSION FOR BULL SPECIAL TO THE WALL STREET JOURNAL PARIS THE FRENCH GOVERNMENT IS CONSIDERING ANOTHER CASH INJECTION FOR TROUBLED COMPUTER MAKER CIE DES MACHINES BULL GOVERNMENT OFFICIALS SAID BULL RECEIVED CAPITAL BOOSTS OF TWO BILLION FRANCS 3541 MILLION IN BOTH 1991 AND 1992 AND IT'S EXPECTED THAT THIS YEAR'S INJECTION WILL BE OF THE SAME ORDER FROM 1983 TO 1992 THE STATE INJECTED 11 BILLION FRANCS INTO THE GROUP THERE IS NO QUESTION THAT BULL NEEDS TO STRENGTHEN ITS CAPITAL BASE AN OFFICIAL OF THE STATECONTROLLED COMPANY SAID THE FRENCH GOVERNMENT DIRECTLY OWNS 72 OF BULL'S CAPITAL AND FRANCE TELECOM HAS 162 INTERNATIONAL BUSINESS MACHINES CORP OF THE US HAS A 57 STAKE AND JAPAN'S NEC OWNS 44 LESS THAN 2 OF THE COMPANY'S SHARES ARE LISTED ON THE PARIS BOURSE LAST JULY THE EUROPEAN COMMUNITY COMMISSION APPROVED FRANCE'S 1991 AND 1992 CAPITAL INJECTIONS AS PART OF A RADICAL RESTRUCTURING PROGRAM INVOLVING LARGE JOB CUTS AND BULL'S RETREAT FROM PARTS OF THE COMPUTER MARKET BUT THE COMMISSION SAID IT WOULD HAVE TO BE NOTIFIED IN ADVANCE OF ANY FUTURE CASH INJECTIONS BULL WHICH HAS BEEN HIT HARD BY THE COLLAPSE IN COMPUTER PRICES IS EXPECTED TO POST ANOTHER LOSS FOR 1992 ITS 1991 LOSS WAS 33 BILLION FRANCS ON MONDAY BULL REPORTED THAT 1992 REVENUE FELL 10 TO 302 BILLION FRANCS 9302170085 930217 ITALY'S LATEST INDUSTRIAL OUTPUT ROME ITALY'S INDUSTRIAL OUTPUT FELL AN UNADJUSTED 21 IN DECEMBER FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID ISTAT SAID THE INDEX BASED ON 1985 EQUALING 100 REGISTERED 1022 IN DECEMBER COMPARED WITH 1044 IN DECEMBER 1991 THE NUMBER OF WORKING DAYS IN DECEMBER 1992 WAS 21 ONE DAY MORE THAN DECEMBER 1991 THE DROP IN DECEMBER FOLLOWED A 17 DROP IN NOVEMBER ISTAT ALSO SAID THAT THE AVERAGE INDUSTRIAL OUTPUT FELL 06 IN THE YEAR AS A WHOLE FROM 1991 9302170084 930217 BUSINESS BRIEF NOVELL INC DEFINITIVE PACT TO ACQUIRE AT&T'S UNIX SYSTEM SIGNED NOVELL INC PROVO UTAH SAID IT SIGNED A DEFINITIVE AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO THAT FORMALIZES ITS PREVIOUSLY ANNOUNCED PLAN TO ACQUIRE AT&T'S UNIX SYSTEM LABORATORIES UNDER THE AGREEMENT UNIX SYSTEM'S COMMON STOCK WILL BE EXCHANGED FOR AS MUCH AS 123 MILLION SHARES OF NOVELL'S COMMON STOCK NOVELL'S SHARES CLOSED AT 2625 DOWN 150 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY PLACING THE VALUE OF THE DEAL AT ABOUT 323 MILLION NOVELL A NETWORKINGSOFTWARE CONCERN SAID THE ACQUISITION STILL NEEDS REGULATORY APPROVALS A SHAREHOLDER VOTE AND OTHER NORMAL CONDITIONS BEFORE CLOSING AT&T NOW OWNS ABOUT 77 OF THE UNIX SYSTEM'S SHARES OUTSTANDING NOVELL HOLDS ABOUT 5 AND 11 OTHER INVESTORS HOLD ABOUT 18 UNIX SYSTEMS SELLS VERSIONS OF THE UNIX OPERATING SYSTEM WHICH IS FAVORED ON POWERFUL COMPUTERS CALLED WORKSTATIONS AND SERVERS 9302170083 930217 WHO'S NEWS KEITHLEY INSTRUMENTS INC KEITHLEY INSTRUMENTS INC CLEVELAND FREDERICK R HUME 49 YEARS OLD WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S TEST INSTRUMENTATION GROUP KEITHLEY MAKES HARDWARE AND SOFTWARE FOR TESTING AND MEASUREMENT EQUIPMENT 9302170082 930217 DEPARTMENT CHAIN STORES SEE RISE IN WEEKLY SALES NEW YORK THE JOHNSON REDBOOK SERVICE SURVEY OF DEPARTMENT AND CHAIN STORES REPORTED SALES 98 HIGHER FOR THE SECOND WEEK OF FEBRUARY COMPARED WITH THE SAME WEEK ONE YEAR AGO THE SURVEY REPORTED SALES OF WOMAN'S APPAREL DROVE THE SALES GAINS WITH MOST WOMEN'S MERCHANDISE SELLING AT FULL PRICE THE DEPARTMENT STORE SEGMENT SHOWED STRONG GAINS REPORTING A 6 INCREASE OVER LAST YEAR'S NUMBERS THE SURVEY FOUND SALES STRONGEST IN THE SOUTHEAST AND CENTRAL REGION THE RETAIL SURVEY WHICH POLLS A REPRESENTATIVE SAMPLE OF DEPARTMENT CHAIN AND DISCOUNT STORES COMPARES TOTAL SALES FIGURES RATHER THAN SAMESTORE FIGURES 9302170081 930217 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL THE THRILL HAS GONE OUT OF SIN TAXES A STATECOUNCIL STUDY SAYS TOBACCO ALCOHOLICBEVERAGE AND GASOLINE LOBBIES ARE CAMPAIGNING ANEW AGAINST ANY INCREASES BY THE CLINTON ADMINISTRATION AND BY STATES IN TAXES ON THESE OFTENTARGETED PRODUCTS ONE RECURRENT CLAIM HIGHER RATES REDUCE CONSUMPTION AND THUS TOTAL TAX REVENUE THE DISTILLED SPIRITS COUNCIL SAYS FEDERAL REVENUE FELL BY 91 MILLION AFTER 1991'S 8 RISE IN THE EXCISE TAX ON LIQUOR NOW A STUDY BY THE COUNCIL OF STATE GOVERNMENTS ON THE STEADY RISE IN STATE RATES ON CIGARETTES AND MOTOR FUELS FINDS THESE TAXES NO LONGER ARE GOOD SOURCES OF REVENUE THE STUDY MEASURED TAXREVENUE GROWTH AGAINST PERSONALINCOME GROWTH IN 197790 CIGARETTETAX REVENUE FELL IN 20 STATES AND ROSE NATIONALLY AT ONLY 3 OF THE RATE FOR INCOME GROWTH MOTORFUELTAX REVENUE ROSE AT ONLY 27 OF THE INCOMEGROWTH RATE OF COURSE OTHER FACTORS FOSTERED DROPS IN CONSUMPTIONHEALTH CONCERNS FOR CIGARETTES AND MORE EFFICIENT ENGINES FOR MOTOR FUELS THE COUNCIL SAYS THE STUDY SUPPORTS ARGUMENTS THAT STATES WOULD DO BETTER BY BROADENING SALES TAXES ON SERVICES FREE CHECKING FOR IRA AND KEOGH CUSTOMERS IS APPROVED OFFICIALLY AT LAST IN RULINGS AWAITED SINCE 1989 THE LABOR DEPARTMENT SAYS BANKS AND THRIFTS MAY OFFER NOMINAL GIFTS OR SERVICES AS INCENTIVES TO RETIREMENTPLAN CUSTOMERS WITHOUT JEOPARDIZING A PLAN'S DEFERREDTAX STATUS THE RULINGS' TERMS AFFECT INDIVIDUAL RETIREMENT ACCOUNTS AND KEOGH PLANS FOR THE SELFEMPLOYED THE DEPARTMENT PROPOSES TO EXTEND THE RULINGS TO SIMPLIFIED EMPLOYEE PENSIONS THE DEPARTMENT REGULATES SUCH PLANS IT PROVOKED A FUROR IN 1989 BY TELLING ONE BANK THAT THE LAW BARRED CUSTOMERS FROM GETTING FREE CHECKING IN RETURN FOR INVESTING IRA FUNDS WITH THE BANK IF APPLIED GENERALLY THE OPINION COULD HAVE CAUSED MILLIONS OF PEOPLE TO LOSE TAX BREAKS AND SUFFER TAX PENALTIES BUT THE IRS AND THE LABOR DEPARTMENT AGREED TO TAKE NO ACTION WHILE THE DEPARTMENT REVIEWED THE MATTER NOW RULINGS PTE 931 AND PTE 932 SETTLE IT S CORPORATIONS ARE HERE TO STAY EVEN IF PERSONALTAX RATES RISE THESE ENTITIES AREN'T SUBJECT TO DOUBLE TAXATION THAT IS BOTH ON CORPORATE INCOME AND ON DIVIDENDS PAID FROM THAT INCOME THE INCOME MUCH LIKE A PARTNERSHIP'S IS TAXED ONCE TO THE OWNERS PERSONALLY AFTER 1986'S TAX ACT RAISED THE TOP CORPORATE RATE NOW 34 ABOVE THE TOP PERSONAL RATE NOW 31 FOR THE FIRST TIME HUNDREDS OF THOUSANDS OF CLOSELY HELD BUSINESSES OPTED FOR S STATUS NOW PRESIDENT CLINTON PROPOSES TO RAISE THE TOP RATES SO THAT THE PERSONAL RATE EQUALS OR EXCEEDS THE CORPORATE ONE IS THAT A REASON TO ABANDON SCORPORATION STATUS NOT IN MOST CASES SAYS SHELDON BONOVITZ OF THE PHILADELPHIA LAW FIRM DUANE MORRIS & HECKSHER AN S CONCERN HAS MANY ADVANTAGES OVER A REGULAR CORPORATION BESIDES LOWER INCOME TAXES THE MAIN ONE BONOVITZ SAYS IS THAT AN OWNER'S COST BASIS IN SCOMPANY STOCK RISES AS THE OWNER PAYS TAXES ON UNDISTRIBUTED COMPANY INCOME THAT LOWERS THE TAXABLE GAIN IF THE OWNER SELLS THE STOCK AND IN MOST CASES THE SAVING SHOULD OFFSET A RISE IN INCOMETAX RATES AN S CORPORATION ALSO CAN SELL ASSETS WITHOUT DOUBLE TAXATION WHICH BENEFITS ITS OWNERS AND THE BUYERS ALBERT HAKIM WHO PLEADED GUILTY OF A MISDEMEANOR IN THE IRANCONTRA AFFAIR HAS ASKED THE TAX COURT TO REJECT THE IRS'S CLAIM THAT HE FAILED TO REPORT 23 MILLION OF INCOME FROM ARMS SALES IN 198586 INDIVIDUAL NET WORTH NOT EXCEEDING 2 MILLION IS A REQUISITE FOR WINNING LEGAL COSTS FROM THE IRS IN A CASE WHERE IT HAS TAKEN AN UNJUSTIFIED POSITION THE TAX COURT HAS AWARDED COSTS TO KAYE AND DOROTHY S HONG OF HONOLULU EVEN THOUGH THEIR JOINT WORTH TOPS 2 MILLION INDIVIDUALLY EACH HAS A NET WORTH BELOW THE CEILING PLASTIC SURGEON FRANCIS C BURTON JR OF SAN ANTONIO LIQUIDATED THE PROFESSIONAL ASSOCIATION IN WHICH HE WAS THE SOLE SHAREOWNER EMPLOYEE AND RESHAPED HIS PRACTICE AS A SOLE PROPRIETORSHIP BUT THE LIQUIDATION DIDN'T CAUSE A SEPARATION FROM SERVICE SAYS THE TAX COURT SO BURTON COULDN'T WITHDRAW PENSIONPLAN CASH AND GET TAX BREAKS FOR A LUMPSUM DISTRIBUTION A BAKER'S DOZEN DOESN'T DO WHEN YOU ARE DEDUCTING HOMEMORTGAGE INTEREST YOU DON'T EXPECT PITFALLS IN THIS SEEMINGLY SIMPLE DEDUCTION BUT THEY ARE THERE SAYS CPA DAVID ZALLES OF LAFAYETTE HILL PA FIRST ON LINE 9A SCHEDULE A YOU MUST SHOW ONLY INTEREST AND POINTS THAT THE LENDER REPORTS TO YOU AND THE IRS ON FORM 1098 IF YOUR ENTRY AND A 1098 DIFFER YOU WILL HEAR FROM THE IRS IF YOU DID PAY OTHER DEDUCTIBLE AMOUNTS IN 1992 LIST THE INTEREST ON LINE 9B AND ATTACH AN EXPLANATION LIST POINTS ON LINE 10 IF YOU PAID INTEREST TO AN INDIVIDUAL REPORT THE NAME AND ADDRESS MOREOVER ZALLES NOTES YOU MAY DEDUCT ONLY 12 MONTHS OF MORTGAGEINTEREST PAYMENTS FOR ANY YEAR NOT 13 OR MORE YOU CAN'T INCREASE YOUR DEDUCTIONS IN DECEMBER BY MAKING EARLY PAYMENTS OF INTEREST THAT ISN'T DUE UNTIL THE NEXT YEAR THAT IS BECAUSE INTEREST EXPENSE IS DEDUCTIBLE ONLY FOR THE SPECIFIC YEAR TO WHICH IT RELATES THIS IS AN EXCEPTION TO THE GENERAL RULE THAT YOU MAY DEDUCT AN EXPENSE IN THE YEAR WHEN YOU PAY IT BRIEFS ALAN J WILENSKY FORMER ACTING ASSISTANT TREASURY SECRETARY FOR TAX POLICY HAS JOINED AKIN GUMP STRAUSS HAUER & FELD AS A PARTNER IN WASHINGTON ABRAHAM NM SHASHY JR THE IRS'S FORMER CHIEF COUNSEL GOES TO KING & SPALDING AS A PARTNER IN WASHINGTON 9302170080 930217 GREAT AMERICAN COMMUNICATIONS PLANS TO REGROUP BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL GREAT AMERICAN COMMUNICATIONS CO A PIECE OF CINCINNATI FINANCIER CARL H LINDNER'S BUSINESS EMPIRE ANNOUNCED A PROPOSED CONSENSUAL CHAPTER 11 REORGANIZATION PLAN AIMED AT REDUCING ITS CRIPPLING DEBT LOAD IF APPROVED BY CREDITORS AS EXPECTED THE PLAN WILL BE SUBMITTED TO THE US BANKRUPTCY COURT IN CINCINNATI WHERE GREAT AMERICAN IS BASED GREAT AMERICAN IS 403OWNED BY AMERICAN FINANCIAL CORP THE LINDNER FAMILY'S CLOSELY HELD HOLDING COMPANY GREAT AMERICAN WHICH OWNS TELEVISION AND RADIO STATIONS ACROSS THE COUNTRY HAS BEEN STAGGERING UNDER 625 MILLION OF DEBT INCURRED WHEN IT ACQUIRED TAFT BROADCASTING CO IN 1987 THE COMPANY INITIALLY WAS SADDLED WITH 14 BILLION OF DEBT OF WHICH 560 MILLION WAS IN THE FORM OF HIGHYIELD BONDS THE COMPANY SAID IT CAN NO LONGER MAKE PRINCIPAL PAYMENTS DUE IN MARCH TO BANK LENDERS LED BY CONTINENTAL BANK CORP CHICAGO AND BANK OF BOSTON AND IS RENEGOTIATING TERMS OF A NEW LINE OF CREDIT TO REPLACE ITS EXISTING 245 MILLION FACILITY IT MADE THE DISCLOSURE IN A PROXY STATEMENT SUBMITTED TO THE SECURITIES AND EXCHANGE COMMISSION UNDER THE REORGANIZATION PLAN WHICH WILL REDUCE DEBT BY 31 TO 430 MILLION GREAT AMERICAN WILL ISSUE COMMON STOCK IN EXCHANGE FOR ALL 275 MILLION OF PREFERRED STOCK A BIG HIT FOR AMERICAN FINANCIAL WHICH OWNS 255 MILLION OF THE PREFERRED THE REST OF THE PREFERRED IS OWNED BY MEMBERS OF THE TAFT FAMILY WHO ARE EXPECTED TO EXERCISE AN OPTION TO SELL IT TO AMERICAN FINANCIAL ANALYSTS SAID AMERICAN FINANCIAL'S POSITION WHICH INCLUDES A 425 MILLION LINE OF CREDIT TO GREAT AMERICAN THE 403 EQUITY STAKE PREFERRED STOCK AND DEBT WILL BE CONVERTED INTO AN EQUITY STAKE OF LESS THAN 40 ANALYSTS ESTIMATED THAT AMERICAN FINANCIAL'S STAKE COULD BE REDUCED TO ABOUT ONEEIGHTH OF ITS CURRENT VALUE UNDER THE REORGANIZATION EVEN AFTER THE REORGANIZATION AMERICAN FINANCIAL WILL STILL BE THE LARGEST SHAREHOLDER SAID GREGORY C THOMAS GREAT AMERICAN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE PLAN ESSENTIALLY EXCHANGES ALL SUBORDINATED DEBT SOME SENIOR SECURED NOTES AND ALL PREFERRED STOCK FOR ABOUT 98 OF COMMON EQUITY JUST FROM THE MATHEMATICS IT'S A BIG HIT FOR EVERYBODY INCLUDING AMERICAN FINANCIAL IF BUSINESS PICKS UP PEOPLE WILL RECOUP ON THEIR INVESTMENT MR THOMAS SAID HE EMPHASIZED THAT GREAT AMERICAN'S OPERATING COMPANIES WHICH OWN TV AND RADIO STATIONS ARE NOT PART OF THE REORGANIZATION PLAN AND THEIR BUSINESS WILL CONTINUE TO OPERATE AS USUAL LAST MONTH MR LINDNER 73 YEARS OLD CHAIRMAN OF AMERICAN FINANCIAL RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF GREAT AMERICAN HE WAS SUCCEEDED BY 44YEAROLD JOHN P ZANOTTI PRESIDENT OF THE COMPANY'S TELEVISION GROUP SAID PHELPS B HOYT AN ANALYST WITH DUFF & PHELPS THEIR INTENT RIGHT NOW IS TO AVOID LOSING CONTROL OF THE SITUATION THEY WANT APPROVAL VIA A PROXY STATEMENT WITHOUT A CONTESTED CHAPTER 11 9302170079 930217 BUSINESS BRIEF AMERICAN MANAGEMENT SYSTEMS COMPANY TO REPORT 22 RISE IN 4THQUARTER NET INCOME BUOYED BY ACCELERATED BUSINESS FROM STATE AND LOCAL GOVERNMENTS AMERICAN MANAGEMENT SYSTEMS INC SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME ROSE 22 TO 45 MILLION OR 28 CENTS A SHARE REFLECTING STRONG DEMAND FOR THE COMPANY'S INFORMATIONSYSTEMS CONSULTING SERVICES FROM TELECOMMUNICATIONS FINANCIAL SERVICES AND GOVERNMENT CLIENTS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHARLES O ROSSOTTI SAID HE ESTIMATES NET INCOME FOR THE YEAR ROSE 43 TO 16 MILLION OR ABOUT 1 A SHARE EXCLUDING A FIRSTQUARTER ONETIME TAX CREDIT THAT IS IN LINE WITH ANALYSTS' EXPECTATIONS IN THE FOURTH QUARTER A YEAR EARLIER THE ARLINGTON VA COMPANY HAD NET INCOME OF OF 37 MILLION OR 24 CENTS A SHARE ON REVENUE OF 729 MILLION NET INCOME FOR THE YEAR WAS 112 MILLION OR ABOUT 72 CENTS A SHARE ON REVENUE OF 2844 MILLION THE YEAREARLIER FIGURES REFLECT A 3FOR2 STOCK SPLIT AND ARE RESTATED TO REFLECT ACCOUNTING CHANGES FOR INCOME TAXES AND RECOGNITION OF SOFTWARE REVENUE THE OUTLOOK IS SOLID GOING INTO 1993 MR ROSSOTTI SAID IN AN INTERVIEW ADDING THAT GROWTH RATES FOR 1993 DON'T LOOK TO BE A WHOLE LOT DIFFERENT THAN IN 1992 9302170078 930217 BUSINESS BRIEF INTEGRATED RESOURCES INC SUBORDINATED BONDHOLDERS PROPOSE REORGANIZATION PLAN SUBORDINATED BONDHOLDERS OF INTEGRATED RESOURCES INC ARE PROPOSING AN ALTERNATIVE REORGANIZATION PLAN FOR THE NEW YORK REAL ESTATE CONCERN THAT WOULD GIVE THEM THREE CENTS ON THE DOLLAR FOR THEIR INVESTMENT WHILE SENIOR CREDITORS WOULD GET 46 CENTS TO 48 CENTS ON THE DOLLAR INTEGRATED RESOURCES HAS BEEN UNDER BANKRUPTCY COURT PROTECTION FOR THE PAST THREE YEARS THE PLAN BY A COMMITTEE OF SUBORDINATED HOLDERS AND STEINHARDT MANAGEMENT CO CHALLENGES A PROPOSAL BACKED BY INTEGRATED'S MANAGEMENT THAT FAVORS THE COMPANY'S SENIOR DEBTORS UNDER THE MANAGEMENT PLAN SENIOR CREDITORS WOULD GET AT LEAST 57 CENTS ON THE DOLLAR BUT SUBORDINATED HOLDERS WOULD GET NOTHING STEINHARDT PROPOSES TO FUND THE ALTERNATIVE PLAN IN EXCHANGE FOR INTEGRATED'S ASSETS WHICH TOTAL ABOUT 400 MILLION THE MANAGEMENT PLAN IS ALSO BEING CHALLENGED BY LIMITED PARTNERS IN AN INTEGRATED RESOURCES REAL ESTATE SUBSIDIARY WHO HAVE FILED A LAWSUIT IN CALIFORNIA SUPERIOR COURT IN LOS ANGELES SEEKING TO BLOCK IT 9302170077 930217 BREAD SALES BY RALSTON ANHEUSER UNITS ARE INVESTIGATED FOR POSSIBLE BIDFIXING BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT IS INVESTIGATING POSSIBLE BIDRIGGING IN BREAD SALES TO SCHOOLS AND MILITARY BASES AND HAS SUBPOENAED DOCUMENTS FROM TWO OF THE NATION'S LARGEST BAKERIES THE PREVIOUSLY UNREPORTED PROBE IS BELIEVED PART OF A WIDENING GOVERNMENT CRACKDOWN ON THE COST OF FOOD SOLD TO SCHOOL DISTRICTS AND OTHER PUBLICLY FINANCED INSTITUTIONS IN THE US ONLY LAST WEEK BORDEN INC ONE OF THE NATION'S LARGEST DAIRIES AGREED TO PAY AN 8 MILLION FINE TO SETTLE CHARGES THAT IT CONSPIRED IN A PRICEFIXING SCHEME IN TEXAS INVOLVING MILK SALES TO SCHOOLS HOSPITALS A UNIVERSITY AND AN AIR FORCE BASE A NUMBER OF OTHER MILK SUPPLIERS HAVE REACHED SIMILAR SETTLEMENTS BOTH CONTINENTAL BAKING CO A UNIT OF RALSTON PURINA CO AND CAMPBELL TAGGART INC A UNIT OF ANHEUSERBUSCH COS ACKNOWLEDGE RECEIVING SUBPOENAS SEEKING BUSINESS RECORDS THE SUBPOENAS WERE ISSUED IN DECEMBER BY A GRAND JURY SITTING IN SAN FRANCISCO A JUSTICE DEPARTMENT OFFICIAL SAID YESTERDAY THAT GRAND JURIES IN TWO OTHER UNDISCLOSED CITIES ARE PURSUING SIMILAR INVESTIGATIONS WE ARE PROVIDING THE INFORMATION REQUESTED AND ARE FULLY COOPERATING WITH THE JUSTICE DEPARTMENT A SENIOR OFFICIAL WITH DALLASBASED CAMPBELL TAGGART SAID RALSTON ALSO SAID IT WAS COOPERATING ADDING THAT WE SEE NO REASON TO BELIEVE THAT THE COMPANY OR ANY OF ITS PEOPLE HAVE DONE ANYTHING UNLAWFUL OR IMPROPER SENIOR EXECUTIVES AT TWO OTHER LEADING BAKERY CONCERNS INTERSTATE BAKERIES CORP KANSAS CITY MO AND FLOWERS INDUSTRIES INC THOMASVILLE GA SAID THEY HAVEN'T BEEN SERVED WITH SUBPOENAS AND WEREN'T AWARE OF ANY GRAND JURY INVESTIGATIONS RALSTON FIRST DISCLOSED THE BREADBIDDING INVESTIGATION IN A DOCUMENT IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION WHILE CAMPBELL TAGGART ACKNOWLEDGED BEING SUBPOENAED IN RESPONSE TO A REPORTER'S QUESTION YESTERDAY IN ITS FILING RALSTON MENTIONED THAT ITS CONTINENTAL BAKING UNIT HAD RECEIVED A SUBPOENA DEC 11 THE INVESTIGATION APPEARS PRINCIPALLY TO CONCERN BIDDING PROCEDURES FOR SALES OF BREAD PRODUCTS TO SCHOOL DISTRICTS AND GOVERNMENTAL INSTITUTIONS RALSTON SAID THE HEAD OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION'S SAN FRANCISCO OFFICE GARY R SPRATLING YESTERDAY CONFIRMED THAT THERE'S AN INVESTIGATION OF THE BREAD INDUSTRY IN NORTHERN CALIFORNIA AND THAT RALSTON'S BAKING UNIT'S RECORDS HAD BEEN SUBPOENAED HE WOULDN'T ELABORATE ON THE CASE IT'S NOT UNUSUAL FOR SEVERAL GRAND JURIES AROUND THE COUNTRY TO SIMULTANEOUSLY INVESTIGATE ALLEGED CRIMINAL CONSPIRACIES SINCE NUMEROUS COMPANIES MAY BE INVOLVED INDEED THAT WAS THE CASE IN THE SCHOOLMILK INVESTIGATION A RALSTON SPOKESMAN SAID THE SUBPOENAED RECORDS COVERED A PERIOD FROM JANUARY 1987 THROUGH THE PRESENT WE'VE ALREADY SUPPLIED SOME INFORMATION AND WILL BE PROVIDING ADDITIONAL DOCUMENTS HE SAID CONTINENTAL BAKING THE NATION'S LARGEST BAKER WITH MORE THAN 2 BILLION IN SALES LAST YEAR DISTRIBUTES BREAD ROLLS CAKES AND OTHER BAKED GOODS ACROSS MUCH OF THE US ITS BRANDS INCLUDE WONDER BREADS AND HOSTESS SNACKS AMONG THEM TWINKIES AND DING DONGS THE COMPANY SELLS PRIMARILY THROUGH SUPERMARKETS IN THE NORTHEAST MIDWEST AND WEST COAST BUT ALSO SERVES NUMEROUS FOODSERVICE ACCOUNTS INCLUDING SCHOOLS HOSPITALS MILITARY BASES AND PRISONS THIRTEEN OF CONTINENTAL'S BAKING'S 35 BAKERIES ARE IN WESTERN STATES OVER WHICH THE SAN FRANCISCO ANTITRUST REGIONAL OFFICE HAS JURISDICTION ANHEUSER'S CAMPBELL TAGGART UNIT IS BELIEVED TO BE THE NATION'S SECONDLARGEST BAKER THE COMPANY WHICH DOESN'T DISCLOSE ANNUAL SALES MAKES SUCH BREADS AS RAINBO COLONIAL IRON KIDS AND EARTH GRAINS BRANDS PENALTIES IN ANTITRUST CASES RANGE UP TO 350000 IN FINES AND THREE YEARS' IMPRISONMENT FOR INDIVIDUALS ON EACH COUNT AND UP TO 10 MILLION IN FINES FOR A CORPORATION PER COUNT FREQUENTLY ANTITRUST CASE CONVICTIONS INVOLVE MULTIPLE COUNTS ADDRESSING THAT ISSUE RALSTON SAID IN ITS FILING WITH THE SEC THAT ALTHOUGH THE AMOUNT OF CONTINENTAL'S POTENTIAL LIABILITY CAN'T BE DETERMINED WITH WHAT IT NOW KNOWS MANAGEMENT DOUBTS THAT POSSIBLE FINES PENALTIES OR OTHER SANCTIONS WOULD HAVE A MATERIAL ADVERSE EFFECT ON CONTINENTAL'S FINANCIAL POSITION BREAD SALES TO SCHOOLS HAVE BEEN INVESTIGATED IN THE PAST IN THE LATE 1980S FLORIDA OFFICIALS LOOKING INTO SCHOOLLUNCH PROGRAMS SUBPOENAED RECORDS FROM INTERSTATE BAKERIES AND LOOKED AT FILES AT FLOWERS INDUSTRIES' OFFICES COMPANY OFFICIALS SAID NOTHING CAME OF IT SAID AMOS R MCMULLIAN FLOWERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEPARATELY RALSTON DISCLOSED THAT IT HAS BEEN SERVED WITH ADDITIONAL LAWSUITS ALLEGING PARTICIPATION IN A CONSPIRACY TO FIX BABYFOOD PRICES AS PREVIOUSLY REPORTED RALSTON'S BEECHNUT UNIT AS WELL AS HJ HEINZ CO AND INDUSTRY LEADER GERBER PRODUCTS CO LAST MONTH WERE NAMED IN A HALFDOZEN VIRTUALLY IDENTICAL CASES BROUGHT IN NEW JERSEY ON BEHALF OF WHOLESALERS AND OTHER DISTRIBUTORS ALLEGING A 17YEAR PRICEFIXING SCHEME A GERBER SPOKESMAN SAID WOULDBE CLASSACTION LAWSUITS BROUGHT IN BEHALF OF CONSUMERS WERE FILED IN LOS ANGELES SAN FRANCISCO AND SCOTTSBORO ALA LATE LAST MONTH ALL THREE COMPANIES HAD VIGOROUSLY DENIED THE INITIAL ALLEGATIONS 9302170076 930217 HEARD ON THE STREET BATTERED DRUG STOCKS DIVE BARGAIN HUNTERS ARE LEERY BY CRAIG TORRES AND MICHAEL WALDHOLZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRESIDENT CLINTON'S HARSH ATTACK ON THE PHARMACEUTICAL INDUSTRY WREAKED HAVOC ON DRUG STOCKS INVESTORS PUMMELED SHARES OF GIANT US PHARMACEUTICAL CONCERNS WITH A MULTIMILLIONSHARE AVALANCHE OF SELLING TAKING DRUG STOCKS DOWN ABOUT 3 TO 6 MERCK TUMBLED 2 1/2 OR 62 TO 37 7/8 PFIZER PLUNGED 4 1/8 OR 64 TO 60 1/8 AND SCHERINGPLOUGH FELL 3 3/4 OR 59 TO 59 3/8 SOME INVESTMENT PROFESSIONALS CAN'T BELIEVE HOW CHEAP THE DRUG STOCKS ARE GETTING BUT THEY AREN'T BUYING YET THERE'S MORE SELLING TO COME MANY INVESTORS FEAR WHAT'S GOING ON ONLY A YEAR OR TWO AGO MONEY MANAGERS BID UP THE STOCKS OF SUCH COMPANIES AS MERCK PFIZER AND BRISTOLMYERS SQUIBB HAILING THEM AS EXAMPLES OF US SCIENTIFIC PROWESS WHERE EARNINGS COULD GROW 15 A YEAR SEEMINGLY FOREVER BUT ALL THAT'S CHANGED IN RECENT DAYS MR CLINTON HAS SLAMMED THE DRUG INDUSTRY FOR ITS SHOCKING PRICES AND PLEDGED A MAJOR ASSAULT ON PRICE INCREASES THE WRECKAGE IN DRUG STOCKS MARKS A STUNNING REVERSAL IN INVESTOR PSYCHOLOGY THE LESSON UNLIKE THE LAISSEZFAIRE DAYS OF THE BUSH PRESIDENCY THE CLINTON WHITE HOUSE IS GOING TO LEAVE BIG FOOTPRINTS IN THE FINANCIAL MARKETS NEIL WEISMAN GENERAL PARTNER AT CHILMARK CAPITAL WARNS THAT UNCERTAINTY SURROUNDING THE PRESIDENT'S PRECISE PLANS FOR HEALTHCARE REFORM COULD KEEP THE BIG DRUG STOCKS UNDER SELLING PRESSURE FOR WEEKS IT IS GOING TO TAKE A WHILE TO SHAKE THE DRUGS STOCKS OUT HE SAYS I AM JUST GOING TO WAIT THERE IS NO HURRY SAYS MONEY MANAGER RICHARD FONTAINE EVERY GROWTH MANAGER IN THE WORLD OWNS THESE STOCKS WITH DRUGCOMPANY EARNINGS UNDER PRESSURE THE GROWTH GUYS WILL HAVE TO GET OUT SO DRUG STOCKS WILL HAVE TO GET EVEN CHEAPER BEFORE THEY BECOME COMPELLING BUYS WHETHER IT'S THROUGH PRICE CONTROLS ON DRUGS OR THE SUSPENSION OF CERTAIN TAX BENEFITS INVESTORS ARE CONVINCED THAT THE CLINTON ADMINISTRATION WILL PRUNE THE ROBUST EARNINGS GROWTH RATES OF THE BIG DRUG COMPANIES OTHER FUNDAMENTAL CHANGES IN THE PHARMACEUTICAL MARKET ARE ALREADY HITTING DRUG PRICES FOR THE PAST YEAR THE PHARMACEUTICAL INDUSTRY HAS COME UNDER INTENSE PRICING PRESSURE FROM LARGEVOLUME BUYERS SUCH AS BIG MANAGED CARE PLANS THESE PLANS USE THEIR BUYING CLOUT TO EXACT DISCOUNTS ON THE DRUGS THEY BUY NOW THE CLINTON ADMINISTRATION'S HEALTH PACKAGE IS EXPECTED TO REQUIRE MANAGED CARE PLANS TO PROVIDE OUTPATIENT DRUG COVERAGE THAT MEANS A LARGER PERCENTAGE OF A DRUG COMPANY'S SALES WILL BE EXPOSED TO DISCOUNTDEMANDING BUYERS INDUSTRY SOURCES SAY THAT MANAGED CARE SALES WHICH REPRESENTED ABOUT 35 OF ALL PRESCRIPTIONDRUG SALES IN THE US IN 1989 GREW TO 64 OF ALL SALES IN 1991 AND ARE EXPECTED TO RISE TO 75 OF ALL PRESCRIPTIONDOLLARS IN 1994 THE PRESSURE CAN ALREADY BE SEEN IN ACTUAL AND PROJECTED REVENUE AND PROFIT GROWTH AT MAJOR DRUG COMPANIES THE AVERAGE WEIGHTED PRICES OF PRESCRIPTION DRUGS ACCORDING TO THE US BUREAU OF LABOR STATISTICS ROSE 57 IN 1992 DOWN FROM 94 IN 1991 ANALYSTS BELIEVE PRICE GROWTH WILL SLOW FURTHER THIS YEAR TO BETWEEN 3 AND 5 WITH OR WITHOUT FEDERAL REGULATIONS AS A RESULT THE PHARMACEUTICAL INDUSTRY'S AVERAGE ANNUAL PROFIT INCREASE WHICH WAS 1520 FROM 1987 TO 1991 IS MODERATING TO 912 PROFIT GROWTH IS EXPECTED TO STAY AT ABOUT THAT LEVEL FOR THE NEXT THREE TO FIVE YEARS IT WILL BE SURVIVAL OF THE FITTEST PREDICTS MARIOLA HAGGAR DRUG STOCK ANALYST AT SALOMON BROTHERS WE ARE DEFINITELY HEADING INTO THE ERA OF TIGHT PRICE CONTROLS THAT MEANS THE CARNAGE IN DRUG SHARES PROBABLY ISN'T OVER EVEN SO THERE ARE CONTRARIAN INVESTORS WHO THINK THE BLOODLETTING IS OVERDONE AND A BUYER WITH A ONEYEAR TO THREEYEAR PERSPECTIVE COULD EVENTUALLY DO QUITE WELL THEY ARE PRETTY ATTRACTIVE STOCKS SAYS DENNIS LYNCH PRESIDENT OF MONEY MANAGER LYNCH & MAYER THEY MAY NOT SELL AT THE VALUATIONS THEY ONCE DID BUT THEY DON'T HAVE TO FOR AN INVESTOR TO MAKE MONEY THE KEY ANALYSTS SAY IS TO MOVE AWAY FROM THOSE DRUG COMPANIES THAT WILL HAVE TO COMPETE ON PRICE TO THOSE THAT CAN COMMAND A PREMIUM PRICE FOR UNIQUE MEDICINES RONALD NORDMANN AN ANALYST AT PAINEWEBBER SAYS THE RICHEST PIPELINE OF EXPERIMENTAL MEDICINES BELONGS TO A HANDFUL OF COMPANIES BRISTOLMYERS WITH 16 NEW MEDICINES IN ADVANCED STAGES OF HUMAN TESTING MERCK WITH 18 SUCH DRUGS PFIZER WITH 13 AND SCHERINGPLOUGH WITH 23 MR NORDMAN EXPECTS BRISTOLMYERS'S EARNINGS FROM CONTINUING OPERATIONS TO GROW BY ABOUT 15 TO 540 A SHARE IN 1994 PUT ANOTHER WAY THE STOCK IS NOW TRADING AT LESS THAN 11 TIMES HIS 1994 EARNINGS ESTIMATE WHILE ITS DIVIDEND YIELD HIT 5 YESTERDAY HE EXPECTS MERCK TO POST YEARONYEAR EARNINGS GROWTH OF ABOUT 16 IN 1994 TO 285 A SHARE PFIZER'S EARNINGS SHOULD RISE ABOUT 20 TO 450 A SHARE IN 1994 THE ANALYST PREDICTS HE EXPECTS SCHERINGPLOUGH'S EARNINGS TO RISE 16 NEXT YEAR TO 490 A SHARE LOOK FOR COMPANIES THAT HAVE A STRONG CORE BUSINESS OF PATENTPROTECTED PRODUCTS SAYS MR NORDMANN LOOK FOR COMPANIES INCREASING EARNINGS THROUGH UNIT GROWTH NOT PRICE INCREASES AMONG THE STOCKS HE LIKES IS MERCK WHICH HE EXPECTS TO POST YEARONYEAR EARNINGS GROWTH OF ABOUT 16 IN 1994 TO 285 A SHARE PFIZER'S EARNINGS SHOULD RISE ABOUT 20 TO 450 A SHARE IN 1994 THE ANALYST PREDICTS HE EXPECTS SCHERINGPLOUGH'S EARNINGS TO RISE 16 NEXT YEAR TO 490 A SHARE BUT THERE COULD BE PLENTY OF LAND MINES NO MATTER HOW CAREFUL AN INVESTOR IS OR HOW GOOD THE COMPANIES ARE ANALYSTS ALSO EXPECT THAT DRUG COMPANIES WILL SOON BEGIN COSTCUTTING EFFORTS OF THE KIND THAT HAS BECOME COMMONPLACE THROUGHOUT US BUSINESS IN RECENT MONTHS BRISTOLMYERS ELI LILLY AND SYNTEX HAVE UNDERTAKEN STAFF REDUCTIONS ANALYSTS EXPECT TO SEE SIMILAR MOVES BY MANY OTHER DRUG COMPANIES EVEN COMPANIES WITH HUGE RESEARCH OPERATIONS MAY BEGIN SCALING BACK RESEARCH AND DEVELOPMENT SPENDING FOR THE FIRST TIME IN YEARS I EXPECT DRUG MAKERS WILL SHUT DOWN ENTIRE RESEARCH PROJECTS ESPECIALLY THOSE THAT ARE DESIGNED TO PRODUCE DRUGS SIMILAR TO PRODUCTS ALREADY IN THE MARKETPLACE MR NORDMANN OF PAINEWEBBER SAYS INDUSTRY EXECUTIVES SAY IN FACT THAT ONLY ABOUT FIVE DRUG MAKERS CAN CURRENTLY AFFORD TO FUND THE KIND OF CUTTINGEDGE RESEARCH NEEDED TO FIND NEW BLOCKBUSTER DRUGS THESE COMPANIES ARE MERCK PFIZER BRISTOLMYERS GLAXO AND ELI LILLY ANALYSTS SAY THAT COMPANIES THAT ARE ABLE TO BOLSTER THEIR OWN RESEARCH WITH PRODUCTS FROM OTHER COMPANIES ALSO WILL FARE WELL FOR INSTANCE MERCK HAS BEEN ESPECIALLY AGGRESSIVE IN DEVELOPING ALLIANCES WITH OTHER DRUG MAKERS IN RECENT YEARS MERCK HAS CREATED A JOINT VENTURE WITH DU PONT AND ANOTHER WITH THE SWEDISH DRUG MAKER ASTRA IT IS ALSO DEVELOPING A NONPRESCRIPTION DRUG BUSINESS WITH JOHNSON & JOHNSON ANALYSTS EXPECT THESE DEALS TO KEEP MERCK'S NEWDRUG PIPELINE FULL WELL INTO THE NEXT CENTURY EVEN SO MANY ANALYSTS THINK DRUG STOCKS BOTH GOOD AND BAD ARE HEADING LOWER WITH WAVES OF PESSIMISM WASHING OVER THE STOCKS THE STRONGEST COMPANIES WILL SIMPLY HAVE TO PROVE THE SKEPTICS WRONG SAYS MS HAGGAR OF SALOMON BROTHERS THIS MONTH SHE REMOVED HER BUY RECOMMENDATION FROM SEVERAL DRUG STOCKS CURRENTLY NONE OF THESE STOCKS DESERVE TO BE RATED A BUY SHE SAYS ELI LILLY & CO DIDN'T INCUR STAFF REDUCTIONS AS A RESULT OF A RESTRUCTURING PROGRAM IN 1992 WEDNESDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID THE COMPANY HAD CUT ITS WORK FORCE 9302170075 930217 BUSINESS BRIEF LIBERTY MEDIA CORP HOME SHOPPING HOLDERS SUE IN BID TO BLOCK TRANSACTION AT LEAST FOUR SHAREHOLDERS OF HOME SHOPPING NETWORK INC FILED LAWSUITS IN DELAWARE CHANCERY COURT SEEKING TO BLOCK LIBERTY MEDIA CORP'S ATTEMPT TO BUY THE REMAINDER OF THE COMPANY LAST WEEK AFTER THE JUSTICE DEPARTMENT APPROVED LIBERTY'S BID TO BUY A 75CONTROLLING STAKE IN HOME SHOPPING LIBERTY PROPOSED TO BUY THE REMAINING SHARES FOR CASH AND SECURITIES IT VALUED AT 9 A SHARE THE HOME SHOPPING SHAREHOLDERS CALLED THE OFFER GROSSLY UNFAIR INADEQUATE AND SUBSTANTIALLY BELOW THE FAIR OR INHERENT VALUE OF THE COMPANY CITING THE COMPANY'S ASSETS AND FUTURE EARNINGS POTENTIAL BECAUSE LIBERTY NOW CONTROLS THE HOME SHOPPING BOARD THE SUIT STATES PUBLIC SHAREHOLDERS HAVEN'T ANY CHOICE IN THE MATTER IF THE MERGER PROPOSAL IS COMPLETED THE SUIT SEEKS TO RESCIND THE TRANSACTION A LIBERTY SPOKESWOMAN DECLINED TO COMMENT 9302170074 930217 BUSINESS BRIEF REPUBLIC GOLDFIELDS INC AGREEMENT WITH 2 BANKERS WILL REDUCE BANK DEBT 70 REPUBLIC GOLDFIELDS INC SAID IT ENTERED INTO AGREEMENTS WITH ITS TWO MAIN BANKERS THAT WILL REDUCE ITS BANK DEBT BY 70 THE TORONTO GOLD MINING CONCERN SAID THAT UNDER THE AGREEMENTS IT WILL BE LEFT WITH 900000 CANADIAN DOLLARS US717300 IN BANK DEBT WHICH WILL BE RESCHEDULED INTO A TWOYEAR TERM LOAN REPUBLIC SAID THAT IT WILL PAY US700000 IN CASH AND ISSUE C300000 IN CONVERTIBLE PREFERENCE SHARES TO BANK OF NOVA SCOTIA WHICH IN RETURN WILL ASSIGN TO REPUBLIC THE US18 MILLION OUTSTANDING BALANCE OF A GOLD LOAN FACILITY PROVIDED TO A UNIT OF REPUBLIC REPUBLIC WILL ISSUE C100000 IN CONVERTIBLE PREFERRED SHARES TO ROYAL BANK OF CANADA WHICH AGREED TO CONVERT A C900000 CREDIT LINE INTO A TWOYEAR TERM LOAN REPUBLIC SAID FUNDING REQUIRED FOR THE REFINANCING WILL COME FROM EXISTING WORKING CAPITAL AND PROCEEDS OF A PRIVATE EQUITY PLACEMENT OF AS MUCH AS US400000 9302170073 930217 BUSINESS BRIEF APPLIED MATERIALS INC PROFIT MORE THAN DOUBLED IN THE FISCAL FIRST QUARTER APPLIED MATERIALS INC BUOYED BY A RESURGING SEMICONDUCTOR MARKET POSTED A MORE THAN TWOFOLD GAIN IN FISCAL FIRSTQUARTER NET INCOME ON RECORD SALES THE SANTA CLARA CALIF COMPANY WHICH MAKES EQUIPMENT FOR CHIP MANUFACTURING SAID PROFIT IN THE QUARTER ENDED JAN 31 WAS 147 MILLION OR 36 CENTS A SHARE UP FROM 64 MILLION OR 18 CENTS A SHARE A YEAR EARLIER THE EARNINGS CAME IN AT THE HIGH END OF ANALYSTS' ESTIMATES WHICH RANGED FROM 30 CENTS TO 36 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC SALES ROSE 29 TO 2156 MILLION FROM 167 MILLION APPLIED'S FORTUNES TEND TO RISE AND FALL WITH THOSE OF THE CHIP MAKERS THAT ARE ITS BIG CUSTOMERS BUT IT HAS BEEN GAINING MARKET SHARE BECAUSE IT IS THE STRONGEST PLAYER IN SEVERAL IMPORTANT MARKETS THE COMPANY HAS SEEN A RECOVERY IN EARNINGS SINCE EARLY LAST YEAR WHEN US SEMICONDUCTOR CONCERNS BEGAN TO REBOUND APPLIED SAID ITS BACKLOG OF ORDERS ROSE TO 2678 MILLION FROM 2539 MILLION AT THE END OF FISCAL 1992 AND THAT RECORD NEW ORDERS OF 231 MILLION WERE RECEIVED DURING THE QUARTER 9302170072 930217 INTERNATIONAL BRIEF HANSON PLC FIRM'S PRETAX PROFIT ROSE 44 FOR FISCAL FIRST PERIOD BRITISH INDUSTRIAL CONGLOMERATE HANSON PLC REPORTED THAT ITS FISCAL FIRSTQUARTER PRETAX PROFIT ROSE 44 TO 236 MILLION 3352 MILLION OR 35 PENCE A SHARE THE RESULTS WERE HELPED BY A 20 MILLION POUND PROFIT ON THE SALE OF ONE OF ITS WEBER UNITS HANSON'S LATEST PROFIT COMPARES WITH YEAREARLIER PROFIT OF 226 MILLION OR 39 PENCE A SHARE FIRSTQUARTER SALES ROSE 10 TO 230 BILLION FROM 1210 BILLION A YEAR EARLIER THE COMPANY DECLARED A DIVIDEND OF 285 PENCE HANSON DIDN'T START PAYING A QUARTERLY DIVIDEND UNTIL THE SECOND QUARTER OF 1992 LORD HANSON CHAIRMAN SAID THAT THE NEW YEAR HAS BEGUN WITH LOWER OPERATING MARGINS THAN IN THE COMPARABLE QUARTER LAST YEAR PERSHARE EARNINGS DROPPED 10 BECAUSE OF A RETURN TO MORE NORMAL TAX LEVELS HE SAID HANSON SAID THE 1992 FIRSTQUARTER FIGURES INCLUDE FIRSTTIME CONTRIBUTIONS FROM BEAZER PLC THE BRITISH BUILDING MATERIALS CONTRACTING AND CONSTRUCTION FIRM THAT HANSON BOUGHT IN LATE 1991 9302170071 930217 BUSINESS BRIEF METALL MINING CORP REST OF MINNOVA IS SOUGHT IN A CASHANDSTOCK OFFER METALL MINING CORP SAID IT PROPOSED TO ACQUIRE ALL THE SHARES THAT IT DOESN'T ALREADY OWN OF MINNOVA INC IN A TRANSACTION VALUED AT ABOUT 1141 MILLION CANADIAN DOLLARS US909 MILLION IN STOCK AND CASH METALL OFFERED ONE COMMON SHARE PLUS C4 CASH FOR EACH MINNOVA SHARE METALL WOULD ALSO ASSUME MINNOVA'S C65 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES LAST YEAR METALL PURCHASED 504 OF MINNOVA FROM KERR ADDISON MINES LTD FOR C1366 MILLION MINNOVA IS A TORONTO BASE AND PRECIOUS METALS CONCERN METALL IS A TORONTO BASE METALS PRODUCER BASED ON MONDAY'S CLOSING STOCK PRICES THE OFFER REPRESENTS A 152 PREMIUM FOR THE MINNOVA SHARES WHICH JUMPED C150 TO C1550 IN LIGHT TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY AFTER THE OFFER WAS ANNOUNCED MINNOVA SHAREHOLDERS ARE EXPECTED TO VOTE ON THE PROPOSAL AT THE ANNUAL MEETING APRIL 26 METALL MINING IS 686 OWNED BY METALLGESELLSCHAFT AG OF FRANKFURT 9302170070 930217 BUSINESS BRIEF SC JOHNSON & SON INC COMPANY DECIDES TO SELL PERSONAL CARE PRODUCTS LINE SC JOHNSON & SON INC PUT MOST OF ITS SHAMPOO AND LOTION LINES UP FOR SALE AFTER DETERMINING IT WOULD BE TOO COSTLY TO BRING THE BRANDS INTO LEADERSHIP POSITIONS THE CLOSELY HELD RACINE WIS COMPANY DOESN'T HAVE A BUYER YET WE DETERMINED THAT THE HAIR CARE AND LOTION BUSINESSES WERE NOT OUR STRONGEST OPTIONS SAID WILLIAM D GEORGE JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH WILL CONTINUE ITS HOUSEHOLD CLEANING PRODUCTS LINE INDEED INDUSTRY ANALYSTS HAVE BEEN SUGGESTING THAT THE COMPANY WOULD HAVE DIFFICULTY OVER THE NEXT SEVERAL YEARS IN RETAINING SHELFSPACE AND MARKET SHARES BECAUSE OF INCREASED COMPETITION A COMPANY SPOKESMAN SAID THE DECISION TO SELL THE PERSONAL CARE PRODUCTS ISN'T TIED TO SC JOHNSON'S PURCHASE RECENTLY OF DRACKETT CO'S LINE OF HOUSEHOLD CLEANING PRODUCTS FOR 115 BILLION 9302170069 930217 AFLCIO SEEKS HEALTH CARE ACCESSIBLE TO ALL AMERICANS BAL HARBOUR FLA THE AFLCIO HOPING TO BE A MAJOR PLAYER IN THE NATIONAL DEBATE OVER HEALTHCARE REFORM IS PROPOSING A HEALTHCARE SYSTEM THAT WOULD BE ACCESSIBLE TO ALL AMERICANS BUT THE ORGANIZATION STAGING ITS ANNUAL MEETING OF THE AFLCIO EXECUTIVE COUNCIL HERE DECLINED TO SPELL OUT JUST HOW THE SYSTEM WOULD BE FUNDED SEPARATELY LABOR SECRETARY ROBERT REICH TOLD REPORTERS THAT HE PLANS TO SET UP A PANEL TO REVIEW US LABOR LAW AND TO MAKE RECOMMENDATIONS TO REFORM THOSE LAWS IF NECESSARY THE LABOR SECRETARY ALSO SAID THE ADMINISTRATION WON'T PRESS FOR A MANDATORY 15 PAYROLL TAX TO PAY FOR WORKER TRAINING EXCEPT AS A LAST RESORT INSTEAD THE LABOR DEPARTMENT WILL PROD COMPANIES INTO SETTING THEIR OWN HIGH STANDARDS FOR TRAINING EMPLOYEES THE AFLCIO HEALTHCARE PLAN WILL BE PRESENTED MARCH 3 TO HILLARY RODHAM CLINTON WHO IS RUNNING THE TASK FORCE TO REFORM THE COUNTRY'S 840 BILLION HEALTHCARE SYSTEM 9302170068 930217 INTERNATIONAL BRIEF SUMITOMO CHEMICAL CO GROUP PRETAX PROFIT ROSE 19 IN '92 SALES DROPPED SUMITOMO CHEMICAL CO A MAJOR JAPANESE CHEMICAL MAKER REPORTED THAT ITS GROUP PRETAX PROFIT INCREASED 19 TO 3995 BILLION YEN 331 MILLION IN 1992 BUT NET INCOME FELL 19 TO 1636 BILLION YEN BECAUSE TAX PAYMENTS ROSE SALES WERE OFF 62 TO 1018 TRILLION YEN FROM 1085 TRILLION YEN THE PREVIOUS YEAR FOR THE CURRENT YEAR SUMITOMO CHEMICAL EXPECTS ITS GROUP PRETAX PROFIT TO INCREASE 10 FROM THE YEAR BEFORE TO 44 BILLION YEN NET INCOME TO GROW 22 TO 20 BILLION YEN AND SALES TO IMPROVE 31 TO 105 TRILLION YEN JAPAN'S ECONOMIC SLOWDOWN AND THE EXCESS SUPPLY OF PETROCHEMICAL PRODUCTS DEPRESSED SALES OF BASIC CHEMICAL PRODUCTS ESPECIALLY IN THE SECOND HALF OF 1992 SUMITOMO SAID THE DECLINE IN PRICES OF OILRELATED RAW MATERIALS AS WELL AS THE SLACK DEMAND ACCELERATED THE DECLINE OF BASIC CHEMICAL PRICES IN BOTH THE JAPANESE AND SOUTHEAST ASIAN MARKETS 9302170067 930217 BUSINESS BRIEF ASEA BROWN BOVERI INC THREE POWERPLANT UNITS WIN JOBS FOR 100 MILLION ASEA BROWN BOVERI INC SAID THAT THREE OF ITS POWERPLANT BUSINESSES WON A TOTAL OF 100 MILLION IN CONTRACTS TO SUPPLY EQUIPMENT FOR A 300 MILLION COGENERATION POWER PLANT BEING BUILT IN MARYLAND COGENERATION IS THE PROCESS OF PRODUCING TWO USEFUL ENERGY FORMS NORMALLY ELECTRICITY AND HEAT FROM THE SAME FUEL SOURCE ABB BASED IN STAMFORD CONN IS A UNIT OF ABB ASEA BROWN BOVERI LTD OF ZURICH SWITZERLAND ABB IS IN A CONSORTIUM WITH UNITED ENGINEERS & CONSTRUCTORS INC TO BUILD A 180MEGAWATT COALFIRED FACILITY IN ALLEGHENY COUNTY MD THE PLANNED FACILITY KNOWN AS THE WARRIOR RUN COGENERATION PROJECT IS BEING BUILT BY AES WARRIOR RUN INC A WHOLLY OWNED UNIT OF AES CORP AN ENERGY COMPANY IN ARLINGTON VA UNDER THE TERMS OF THE CONTRACTS ABB COMBUSTION ENGINEERING SYSTEMS IN WINDSOR CONN WILL SUPPLY THE PLANT'S BOILER ABB STEAM TURBINE DIVISION IN RICHMOND VA WILL PROVIDE THE TURBINE AND ABB ENVIRONMENTAL SYSTEMS IN BIRMINGHAM ALA WILL PROVIDE AIRQUALITY CONTROL SYSTEMS UNITED ENGINEERS WILL PROVIDE DESIGN ENGINEERING EQUIPMENT PROCUREMENT AND CONSTRUCTION SERVICES CONSTRUCTION IS SCHEDULED TO BEGIN IN THE SPRING OF 1994 WITH COMPLETION IN LATE 1996 9302170066 930217 MARKETING BRIEF NOTED WHO'S NEWS KNIGHTRIDDER INC'S MIAMI HERALD NAMED SAUNDRA KEYES AS MANAGING EDITOR FOR THE PAST TWO YEARS MS KEYES 47 WAS EXECUTIVE EDITOR OF THE LONG BEACH PRESSTELEGRAM A DAILY NEWSPAPER SERVING SUBURBAN LOS ANGELES BEFORE THAT SHE WAS MANAGING EDITOR OF THE PHILADELPHIA DAILY NEWS AND A DEPUTY MANAGING EDITOR AT THE ORLANDO SENTINEL IN FLORIDA SHE SUCCEEDS PETE WEITZEL 56 WHO BECAME SENIOR MANAGING EDITOR AT THE HERALD LAST MONTH MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC SAID FRANK P STANEK WAS NAMED PRESIDENT OF ITS MCA ENTERPRISES INTERNATIONAL UNIT SUCCEEDING J ANTHONY YOUNG MR STANEK 52 WAS EXECUTIVE VICE PRESIDENT OF THE UNIT WHERE HE CONTINUES TO DIRECT THE DEVELOPMENT AND EXPANSION OF NEW INTERNATIONAL BUSINESS OPPORTUNITIES FOR MCA INC 9302170065 930217 BUSINESS BRIEF ABRAXAS PETROLEUM CORP COMPANY AGREES TO ACQUIRE TEXAS OIL AND GAS PROPERTIES ABRAXAS PETROLEUM CORP SAN ANTONIO SAID IT AGREED WITH A MAJOR OIL COMPANY TO BUY PRODUCING OIL AND GAS PROPERTIES IN SOUTH TEXAS THAT WILL DOUBLE ITS REVENUE THE SELLER AND TERMS OF THE TRANSACTION WERE NOT DISCLOSED ABRAXAS SAID THE PROPERTIES CURRENTLY PRODUCE ABOUT 1400 BARRELS OF OIL AND NATURAL GAS LIQUIDS A DAY AND 68 MILLION CUBIC FEET OF GAS A DAY ABRAXAS SAID AN AFFILIATE OF ITS PRIMARY LENDER WILL PROVIDE FINANCING AND THE BALANCE WILL COME FROM A TRUST FUND THAT WILL RECEIVE 50 OF THE PRODUCTION REVENUES FROM THE PROPERTIES ABRAXAS WHICH IS EXPANDING INTO SOUTH TEXAS SAID THE PURCHASE WILL NEARLY TRIPLE THE DISCOUNTED VALUE OF ITS PROVEN RESERVES TO 57 MILLION FROM 21 MILLION AS OF DEC 31 9302170064 930217 BUSINESS BRIEF DIET CENTER INC PACTS WITH BANKS HOLDER CUT DEBT TO 162 MILLION DIET CENTER INC SAID IT SLASHED ITS DEBT LOAD TO 162 MILLION FROM 126 MILLION THROUGH AGREEMENTS WITH BANKS AND ITS LARGEST SHAREHOLDER THE PITTSBURGH FRANCHISER OF COMMERCIAL DIET CENTERS SAID A GROUP OF FIVE BANKS AGREED TO REDUCE ITS LOANS IN EXCHANGE FOR 3 MILLION AND A 10 EQUITY STAKE IN THE PRIVATELY HELD FIRM AND THOMAS H LEE CO A BOSTON INVESTMENT FIRM RESTRUCTURED ITS HOLDINGS TO WIPE OUT THE SUBORDINATED DEBT AND PREFERRED STOCK IT HELD LEAVING IT WITH COMMON STOCK EQUAL TO ABOUT 895 OF THE COMPANY THE SAME STAKE ON A PERCENTAGE BASIS THAT IT FORMERLY HELD THE DEBT REDUCTION IS PART OF AN OVERALL REORGANIZATION PLAN WHICH INCLUDES INTRODUCING NEW PRODUCTS SELLING MORE FRANCHISES AND LAUNCHING AN INDEPENDENT NATIONAL DISTRIBUTION SYSTEM 9302170063 930217 WORLD MARKETS TOKYO SHARES SKID AS BUYERS LOSE TUG OF WAR LONDON PRICES SINK AS CLINTON PLAN SOCKS EUROPE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES LOST 12 TUESDAY AS SELLING OVERWHELMED BUYING BY PUBLIC PENSION FUNDS IN THEIR ROLE OF BUTTRESSING THE MARKET PRESIDENT CLINTON'S PLAN TO RAISE US TAXES REVERBERATED THROUGH EUROPEAN MARKETS DRAGGING PRICES DOWN LONDON SHARES SANK 12 HURT BY WALL STREET'S EARLY PLUNGE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 26648 POINTS MONDAY LOST 20167 TO 1691632 WHICH ALSO WAS THE INTRADAY LOW ON WEDNESDAY THE NIKKEI FELL 10073 POINTS TO CLOSE THE MORNING SESSION AT 1681559 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES LITTLE CHANGED FROM 2149 MILLION SHARES A DAY EARLIER RETREATING ISSUES TROUNCED GAINERS 585330 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1181 POINTS MONDAY SLIPPED 843 TO 129233 IN THE TOKYO MARKET'S TUG OF WAR SELLING BY TOKKIN SPECIFIED MONEY TRUSTS AND DEALERS PROVED TOO MUCH FOR THE CONTINUED SUPPORT BUYING BY THE PENSION FUNDS HALF OF THE DAY'S LOSSES CAME IN THE FINAL HALF HOUR ON ARBITRAGE SELLING HOUSINGRELATED SHARES SAW SUSTAINED BUYING INTEREST AS TALK OF RECOVERY IN THAT SECTOR CIRCULATED IN THE MARKET PARTICIPANTS AGAIN FOCUSED ON FOREIGNEXCHANGE DEALINGS AS THE YEN FIRMED AGAINST THE DOLLAR AFTER A BRIEF RESPITE A DAY EARLIER EXPORTORIENTED BLUE CHIPS CONTINUED THEIR LOSING STREAK THAT BEGAN LAST WEEK A STRONG JAPANESE CURRENCY IS BAD FOR EXPORTERS BECAUSE IT REDUCES THEIR RETURNS FROM OVERSEAS SALES UNEASINESS ABOUT THE YENDOLLAR SITUATION AND THE LACK OF INCENTIVES CONTINUED TO HOLD MANY INVESTORS AT BAY AND JAPANESE AUTHORITIES PROVIDED LITTLE COMFORT TO EASE WORRIES ABOUT THE JAPANESE CURRENCY'S RAPID APPRECIATION FINANCE MINISTER YOSHIRO HAYASHI INDICATED THAT THE GOVERNMENT DOESN'T NEED TO STEP INTO THE CURRENCY MARKETS TO TEMPER THE YEN'S RISE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 337 POINTS TO 28122 NEAR THE INTRADAY LOW OF 28080 THE FT 30STOCK INDEX DECLINED 165 POINTS TO 21713 VOLUME WAS 6342 MILLION SHARES COMPARED WITH 5163 MILLION SHARES A DAY EARLIER IN THE EARLY GOING LONDON PRICES DRIFTED LOWER AMID A LACK OF BUYING INCENTIVES AND NEWS OF A CORPORATE RIGHTS ISSUE STRONGERTHANEXPECTED DATA ON BRITAIN'S PUBLICSECTOR FINANCES LATER LIFTED THE MARKET OFF ITS LOWS BUT AS THE NEW YORK MARKET OPENED SHARPLY LOWER LONDON PRICES ALSO WERE ROCKED BY WORRIES ABOUT MR CLINTON'S PLANS TO RAISE TAXES AND CUT GOVERNMENT SPENDING IN AN EFFORT TO REDUCE THE US BUDGET DEFICIT DEALERS IN LONDON WORRIED WHETHER THE NEW US PRESIDENT WOULD BREAK FURTHER CAMPAIGN PROMISES HE HAD VOWED TO REDUCE TAXES AND SOME ECONOMISTS ESTIMATED THAT HIGHER TAXES ON AMERICANS WOULD CURB THEIR SPENDING AND THUS REDUCE THE GOODS THEY BUY FROM OVERSEAS THAT COULD HURT BRITISH COMPANIES THAT EXPORT TO THE US IN FRANKFURT SHARES CLOSED LITTLE CHANGED AFTER AN OPENING RALLY FIZZLED THE DAX 30STOCK INDEX SLIPPED 049 POINT TO 166422 POINTS CONTINUING ITS TREND OF TIGHTRANGE TRADING THIS TIME WITHIN ABOUT 12 POINTS OF THE DAX STOCKS 16 ROSE AND 14 FELL SOME ISSUES WERE VOLATILE AND WITH SHARE PRICES MOVING ERRATICALLY PARTICIPANTS COULDN'T DETECT ANY FIRM TREND WITH THE EXPIRATION OF OPTIONS FRIDAY INVESTORS MIGHT BID THE MARKET HIGHER BEFORE THEN PARIS SHARES FINISHED BROADLY LOWER YANKED DOWN IN THE LAST HOUR OF TRADING BY WALL STREET'S PLUNGE AMSTERDAM PRICES ALSO FELL BROADLY WITH EVEN TRADITIONALLY SECURE STOCKS SUCH AS FINANCIAL AND PUBLISHING COMPANIES LOSING GROUND PARTLY BECAUSE OF A SOFTER DOLLAR AND OTHER BOURSES' DECLINES IN MADRID SHARE PRICES DROPPED SHARPLY PULLED DOWN BY NEW YORK STOCKS' SLIDE THE SPANISH MARKET HAD LITTLE CORPORATE NEWS TO AFFECT EQUITIES AND WAS MILDLY DISAPPOINTED THAT LAST FRIDAY'S CUT BY THE BANK OF SPAIN IN ITS BENCHMARK INTEREST RATE TO 13 FROM 1325 WASN'T BIGGER ZURICH SHARE PRICES SLIPPED ON DISAPPOINTMENT ABOUT PRESIDENT CLINTON'S TAXINCREASE PROPOSALS SYDNEY'S MARKET REACHED A SIXMONTH HIGH IN AN ADVANCE PROMPTED BY OPINION POLLS THAT SUGGESTED A POLITICAL OPPOSITION COALITION WILL WIN AUSTRALIAN ELECTIONS SCHEDULED FOR MARCH 13 WELLINGTON'S MARKET HIT ITS HIGHEST LEVEL IN 2 1/2 YEARS ON POSITIVE EARNINGS AND A RESTRUCTURING PLAN BY TELECOM THE NATIONAL PHONE COMPANY SINGAPORE STOCKS SURGED ON POSITIVE RUMORS SUCH AS TALK OF NEW CONTRACTS FOR SHIPBUILDING REPAIRS AND ACTIVITY IN LOWERPRICED STOCKS CONTINUED TO BE SUSTAINED BY SPECULATIVE BUYING HONG KONG SHARES ROSE MODERATELY IN EXTREMELY VOLATILE TRADING AS INVESTORS GROPED FOR INDICATIONS OF WHERE SINOBRITISH RELATIONS STOOD AND PUSHED SHARES STRONGLY UP AND DOWN IN REACTION TO PERCEPTIONS TAIPEI'S RALLY ENDED AT FOUR SESSIONS AS PRICES EASED IN SEOUL A WORSENING OF INVESTMENT FUNDAMENTALS SENT SHARE PRICES DOWN REDUCING EXPECTATIONS THAT THE MARKET WILL TURN UP BEFORE THE NEW SOUTH KOREAN GOVERNMENT TAKES OFFICE AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AIRWAYS DECLINED 3 PENCE OR 11 TO 276 PENCE 392 THE AIRLINE'S PRETAX PROFIT FOR ITS THIRD QUARTER ENDED DEC 31 PLUNGED 80 TO 20 MILLION 284 MILLION FROM A YEAR EARLIER STILL THE RESULTS WERE AT THE TOP END OF ANALYSTS' EXPECTATIONS THE CARRIER BLAMED MORE THAN HALF OF THE 80 MILLION DROP IN EARNINGS ON THE SHORTTERM EFFECT OF THE POUND'S DEVALUATION BOWATER RALLIED 8 OR 16 TO 493 THE INDUSTRIAL CONGLOMERATE AGREED TO BUY SPECIALTY COATINGS INTERNATIONAL OF THE US FOR 434 MILLION INCLUDING ASSUMED DEBT TO PAY FOR THE ACQUISITION BOWATER LAUNCHED A 295 MILLION RIGHTS ISSUE OF NEW SHARES OFFERING HOLDERS ONE NEW SHARE AT 400 PENCE FOR EVERY SIX ALREADY OWNED BOWATER ALSO SAID THAT ITS 1992 PRETAX PROFIT WAS AT LEAST 147 MILLION UP 48 AND THAT IT EXPECTED TO PAY AN ANNUAL DIVIDEND OF 115 PENCE A SHARE UP 11 FROM AFTER ACCOUNTING FOR AN EARLIER RIGHTS ISSUE HANSON DROPPED 4 OR 16 TO 250 THE INDUSTRIAL CONGLOMERATE'S PRETAX PROFIT FOR ITS FIRST QUARTER ENDED DEC 31 ROSE 44 TO 236 MILLION HELPED BY A 20 MILLION PROFIT ON THE SALE OF ITS WEBER OPERATING UNIT THE DIVIDEND WAS DECLARED AT 285 PENCE A SHARE HANSON DIDN'T START PAYING A QUARTERLY DIVIDEND UNTIL THE FISCAL 1992 SECOND QUARTER IN FRANKFURT ALLIANZ DROPPED 5 MARKS TO 2225 MARKS 134190 THE INSURER EXPECTS TO PAY AN UNCHANGED DIVIDEND OF 1350 MARKS A SHARE FOR 1992 AND TO POST LOWER PROFIT THAN THE YEAREARLIER 105 BILLION MARKS 6333 MILLION 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 9302170062 930217 FOREIGN EXCHANGE DOLLAR PLUNGES DEALERS SAY INVESTORS FEAR CLINTON PLAN COULD HURT RECOVERY BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WORRIED THAT PRESIDENT CLINTON'S DEFICITREDUCTION PLAN COULD STRANGLE ECONOMIC RECOVERY IN THE US INVESTORS UNLOADED DOLLARS YESTERDAY DEALERS SAID AND THE US CURRENCY PLUNGED ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16238 MARKS AND AT 11977 YEN THE MARKET IS JUST OBSESSED RIGHT NOW WITH CLINTONOMICS SAID CARL AMENDOLA A VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK PRESIDENT CLINTON IS HOLDING BACK HIS FULL PLAN UNTIL TONIGHT'S ADDRESS BUT HE SOUGHT TO PREPARE THE GROUND WITH A SHORT SPEECH MONDAY LAYING OUT ONLY THE BROAD THEMES OF HIS APPROACH TO CUTTING THE BUDGET DEFICIT HE EMPHASIZED THE NEED FOR SACRIFICE IN HIS ADDRESS TO THE NATION HE SAID FORGOING THE TAX CUT FOR THE MIDDLE CLASS THAT HE HAD PROMISED WHILE CAMPAIGNING WOULD BE ONE SUCH SACRIFICE THE APPARENT FOCUS ON TAX INCREASES AND DEFICIT REDUCTION RATHER THAN ON STIMULUS SPOOKED DOLLAR BULLS DEALERS SAID WITH HIGHER TAXES THE SLUGGISH ECONOMY WILL BE BURDENED FURTHER SAID CHARLES SPENCE CORPORATE FOREIGN EXCHANGE MANAGER AT STANDARD CHARTERED BANK OF LOS ANGELES SIMILAR FEARS AFFLICTED THE US STOCK MARKET YESTERDAY HAMMERING THE DOW JONES INDUSTRIAL AVERAGE 8294 POINTS LOWER TO A CLOSE OF 330949 TOM HOGE A CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK SAID THE CLINTON PLAN BY THREATENING THE US ECONOMIC RECOVERY UNDERMINES THE ONCE WIDELY HELD BULLISH OUTLOOK ON THE DOLLAR WITH GERMAN INTEREST RATES DECLINING ONLY SLOWLY HE SAID THE MAIN ATTRACTION OF THE DOLLAR SO FAR THIS YEAR HAS BEEN THE US ECONOMIC RECOVERY THE PRESIDENT'S PLAN DOES SORT OF CLOUD THE PICTURE SAID MR HOGE BY RAISING TAXES ON A BROAD SPECTRUM OF CONSUMERS THE PROGRAM COULD FORCE THEM TO CUT BACK ON THE SPENDING WHICH HAS HELPED FUEL THE RECOVERY SO FAR DEALERS SAID BAYERISCHE HYPOTHEKENUND WECHSELBANK'S MR AMENDOLA SAID WITH CLINTON RAISING TAXES ONE CAN REASON THAT YOU HAVE LESS DISPOSABLE INCOME AS A CONSUMER SO YOU CAN SPEND LESS IN ADDITION DEALERS SAID THE PRESIDENT'S SHORTTERM ECONOMICSTIMULUS PLAN SEEMS TO HAVE FADED IN IMPORTANCE WITH THE NEW FOCUS ON REDUCING THE DEFICIT STANDARD CHARTERED'S MR SPENCE SAID AS A RESULT PEOPLE ARE ANTICIPATING LOWER INTEREST RATES IN THE US DOLLAR BULLS HAD LOOKED TO THE STIMULUS TO PUSH UP INFLATION POSSIBLY PRESSURING THE FEDERAL RESERVE INTO RAISING INTEREST RATES BUT DEALERS NOTED THAT TECHNICAL FACTORS ALSO ADDED TO YESTERDAY'S DOLLAR DECLINE AFTER THE CURRENCY FAILED TO EXTEND ITS RECENT GAINS SIGNIFICANTLY ABOVE 16600 MARKS LAST WEEK TECHNICAL INDICATORS POINTED TO A TEST OF SUPPORT DEALERS SAID WE TRIED THE TOPSIDE A FEW TIMES AND THERE'S NO FRESH DOLLARBUYING INCENTIVES AT THE MOMENT SAID MR AMENDOLA ADDINGTHE MARKET WANTED TO TRY THE DOWNSIDE 9302170061 930217 TECHNOLOGY & HEALTH COMPUSERVE INC REDUCES FEES FOR HOURLY ACCESS COLUMBUS OHIO BOWING TO CUSTOMER DEMAND COMPUSERVE INC SAID IT IS REDUCING HOURLY CONNECT FEES FOR CUSTOMERS WHO SUBSCRIBE MONTHLY TO COMPUSERVE INFORMATION SERVICE THE NEW FEE STRUCTURE WHICH INCREASES MONTHLY RATES FOR BASIC SERVICES IS INTENDED TO GIVE CUSTOMERS CHEAPER HOURLY ACCESS TO COMPUSERVE'S ELECTRONIC BULLETIN BOARDS AN EXTRA SERVICE THAT IS ALSO THE COMPANY'S MOST POPULAR COMPUSERVE IS A UNIT OF TAX PREPARERS H&R BLOCK INC OF KANSAS CITY MO UNDER THE REVISED PRICING PLAN WHICH TAKES EFFECT FEB 28 CUSTOMERS WILL PAY 895 A MONTH UP FROM 795 FOR UNLIMITED CONNECTTIME TO 36 BASIC SERVICES INCLUDING TRAVEL SHOPPING INVESTMENT AND GAMES BUT HOURLY CONNECT FEES FOR EXTRA SERVICES SUCH AS ACCESS TO THE BULLETIN BOARDS WILL DROP TO A RANGE OF 8 TO 16 THE RATES CURRENTLY RANGE FROM 1280 TO 2280 THE DIFFERENCE DEPENDS ON HOW FAST A SUBSCRIBER'S COMPUTER CAN RECEIVE DATA THE FASTER THE TRANSMISSION CAPABILITY THE HIGHER THE HOURLY RATE THE PLAN IS ANOTHER STEP TOWARD COMBINING MONTHLY FEES FOR BASIC SERVICES AND HOURLY RATES FOR THE EXTRAS AT COMPUSERVE WHICH OFFERED ONLY A METERED OR BYTHEMINUTE BILLING STRUCTURE WHEN IT STARTED ITS SERVICE IN 1979 9302170060 930217 WHO'S NEWS THUROW RESIGNS AS DEAN OF SLOAN SCHOOL AT MIT CAMBRIDGE MASS LESTER C THUROW RESIGNED AS DEAN OF THE SLOAN SCHOOL OF MANAGEMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY DR THUROW SAID IN A RESIGNATION LETTER THAT HE WOULD TAKE A YEARLONG SABBATICAL THEN RETURN TO THE FACULTY AS A TEACHER AND RESEARCHER THE RESIGNATION TAKES EFFECT JULY 1 THE AUTHOR OF HEAD TO HEAD COMING ECONOMIC BATTLES AMONG JAPAN EUROPE AND AMERICA IN 1992 AND THE ZEROSUM SOCIETY IN 1978 AMONG OTHER BOOKS DR THUROW HAS FOCUSED HIS RESEARCH ON PUBLIC FINANCE INCOME DISTRIBUTION AND INTERNATIONAL ECONOMICS HE HAS BEEN DEAN OF SLOAN SINCE 1987 BEFORE THAT HE WAS AN MIT MANAGEMENT PROFESSOR JOINING THE FACULTY IN 1968 AFTER SERVING FOR A YEAR AS A STAFF ECONOMIST ON THE COUNCIL OF ECONOMIC ADVISERS UNDER PRESIDENT JOHNSON THROUGH THE LEADERS FOR MANUFACTURING PROGRAM AND EXTENSIVE CURRICULAR REVISION HE HAS LED THE SCHOOL TO RECONCEPTUALIZE MUCH OF MANAGEMENT EDUCATION FOR DECADES AHEAD MIT PRESIDENT CHARLES M VEST SAID IN A STATEMENT MIT SAID DR THUROW STEPPED DOWN BECAUSE THE TERM OF OFFICE OF THE DEAN TYPICALLY IS FOUR OR FIVE YEARS HE HAS SERVED SIX DR THUROW WHO WAS TRAVELING IN HONG KONG COULDN'T BE REACHED 9302170059 930217 CLINTON WEIGHS UNDOING PARTS OF '86 TAX ACT PLAN CALLS FOR HIGHER RATES BREAK ON REAL ESTATE OTHER CREDITS REVIVED BY DAVID WESSEL AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO PROPOSE UNDOING SUBSTANTIAL PORTIONS OF THE 1986 TAX REFORM ACT BY RAISING TAX RATES AND REVIVING VARIOUS TAX CREDITS INCLUDING A CONTROVERSIAL REALESTATE TAX BREAK ALTHOUGH THE PLAN MR CLINTON IS TO UNVEIL TONIGHT WILL CALL FOR BIG TAX INCREASES ON THE WEALTHY AND CORPORATIONS IT ALSO IS EXPECTED TO PROPOSE THE PARTIAL RESTORATION OF THE SOCALLED PASSIVE LOSS DEDUCTION BUT ONLY FOR PEOPLE WHO DERIVE MOST OF THEIR INCOME FROM REAL ESTATE NOT FOR INVESTORS WHO DABBLE IN IT THE 1986 LAW LOWERED TAX RATES AND ENDED A VARIETY OF DEDUCTIONS INCLUDING THE PASSIVELOSS DEDUCTION ON THE THEORY THAT THE TAX CODE SHOULDN'T TRY TO INFLUENCE CORPORATE OR INDIVIDUAL BEHAVIOR TO ACHIEVE SOCIAL OR ECONOMIC OBJECTIVES ONE PERSON'S SOCIAL ENGINEERING IS ANOTHER PERSON'S IMPROVEMENT DEPUTY TREASURY SECRETARY ROGER ALTMAN SAID IN DEFENSE OF THE CLINTON PLAN YESTERDAY THE 1986 LAW PROHIBITED OWNERS OF RENTAL REAL ESTATE FROM USING DEDUCTIONS FROM REAL ESTATE SOCALLED PASSIVE LOSSES TO OFFSET INCOME FROM OTHER ACTIVITIES ALTHOUGH MANY ECONOMISTS ARGUE AGAINST GIVING ANY NEW TAX BREAKS FOR REAL ESTATE GIVEN THE OVERSUPPLY OF OFFICE SPACE THE RESTORATION OF THE DEDUCTION IS POPULAR ON CAPITOL HILL AND WILL HELP DRAW VOTES TO THE CLINTON PACKAGE THE ADMINISTRATION IS EXPECTED TO ARGUE THAT THE CHANGE WILL SHORE UP REALESTATE VALUES AND ENCOURAGE BANKS HIT HARD BY LOSSES ON REALESTATE LOANS TO LEND MORE OVERALL THE WHITE HOUSE SAYS THAT TAXES WOULD RISE FOR NEARLY EVERY FAMILY WITH INCOME OF MORE THAN 30000 A YEAR THANKS TO A NEW ENERGY TAX THAT MR CLINTON IS EXPECTED TO PROPOSE PUTTING INTO EFFECT BEFORE THE END OF THIS YEAR MR CLINTON HAS BEEN TELLING CONGRESSMEN THAT A TYPICAL 31000AYEAR FAMILY WILL PAY ONLY ABOUT 25 A YEAR MORE IN TAXES EARLIER THIS WEEK HE SAID THAT 70 OF THE TAX INCREASES WILL FALL ON THOSE WITH INCOMES ABOVE 100000 A YEAR THE PRESIDENT IS EXPECTED TO PROPOSE SUBJECTING ALL WAGES TO THE MEDICARE PAYROLL TAX A CHANGE THAT WOULD HIT THE HIGHESTPAID 2 OF WORKERS CURRENTLY THE TAX 29 SPLIT EQUALLY BETWEEN EMPLOYER AND EMPLOYEE APPLIES ONLY TO WAGES BELOW 135000 A YEAR THE PLAN WOULD RAISE MORE THAN 6 BILLION A YEAR THE PROPOSED 36 TOP TAX BRACKET IS EXPECTED TO HIT COUPLES WITH TAXABLE INCOME AFTER DEDUCTIONS OF ABOUT 140000 A YEAR AND INDIVIDUALS WITH INCOME OF 115000 MR CLINTON ALSO IS EXPECTED TO PROPOSE A 10 SURTAX FOR THOSE WITH TAXABLE INCOME OF 250000 EFFECTIVELY RAISING THEIR MARGINAL TAX RATE TO 396 MR CLINTON IS EXPECTED TO ASK THAT THE INCOME TAX INCREASES TAKE EFFECT IN 1994 THE BIG TAX INCREASES ARE PROVING AN EASY TARGET FOR REPUBLICANS THEY ARE MAKING THE SAME MISTAKE THAT BUSH BUDGET DIRECTOR DICK DARMAN MADE IN 1990 SAID FORMER HOUSING SECRETARY JACK KEMP REFERRING TO THE 1990 TAX INCREASES THAT GEORGE BUSH AGREED TO HANG ON TO YOUR WALLETS SAID SENATE REPUBLICAN LEADER BOB DOLE OF KANSAS WE DON'T SEE MANY SPENDING RESTRAINTS HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWKSI D ILL QUICKLY FIRED BACK IF BOB DOLE WANTS TO ASK FOR SPECIFIC CUTS I'LL ENTERTAIN THEM IN MY COMMITTEE BUT THEY HAVE TO BE SPECIFIC MR CLINTON'S PLAN IS AIMED AT SUBSTANTIALLY REDUCING THE DEFICIT IN FISCAL 1997 WHICH BEGINS OCT 1 1996 FROM A PROJECTED 346 BILLION A WHITE HOUSE OFFICIAL SAID YESTERDAY EVEN IF ALL MR CLINTON'S TAX INCREASES WHICH TOTAL MORE THAN 70 BILLION IN 1997 AND SPENDING CUTS ARE APPROVED BY CONGRESS THE PLAN IS ESTIMATED TO LEAVE THE 1997 DEFICIT ABOVE 200 BILLION IN ALL MR CLINTON IS EXPECTED TO ARGUE THAT HIS PLAN WOULD REDUCE THE DEFICIT BY A TOTAL OF NEARLY 500 BILLION OVER THE NEXT FOUR OR FIVE YEARS WITH ABOUT HALF OF THAT COMING FROM SPENDING CUTS AND HALF FROM TAX INCREASES THE WHITE HOUSE ALSO PROJECTS THAT OVER EIGHT YEARS ITS PLAN WOULD CUT SPENDING BY 2 FOR EVERY 1 IN TAX INCREASES BUDGET DIRECTOR LEON PANETTA'S GOAL WHAT WE'RE SAYING IS THAT THE OVERALL PACKAGE WILL REDUCE THE DEFICIT WE HOPE AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT IN HALF OVER FOUR YEARS MR CLINTON'S SPOKESMAN GEORGE STEPHANOPOULOS SAID YESTERDAY LAST YEAR THE DEFICIT AMOUNTED TO 77 OF GDP THE VALUE OF ALL THE GOODS AND SERVICES PRODUCED IN THE US HE ALSO SAID MR CLINTON PROPOSES TO CUT NONDEFENSE SPENDING BY MORE THAN 100 BILLION OVER FOUR YEARS BUT IT WASN'T CLEAR IF THAT FIGURE TAKES INTO ACCOUNT PLANS TO INCREASE FAVORED PROGRAMS SUBSTANTIALLY THESE PARTS OF THE PRESIDENT'S ECONOMIC PLAN EMERGED YESTERDAY FROM THE ADMINISTRATION AND CONGRESS A WHITE HOUSE OFFICIAL SAID MR CLINTON IS BACKING OFF A CAMPAIGN CLAIM THAT TOUGHER INTERNAL REVENUE SERVICE ENFORCEMENT OF RULES GOVERNING PRICES THAT FOREIGN COMPANIES CHARGE THEIR OWN SUBSIDIARIES COULD RAISE 45 BILLION OVER FOUR YEARS THE PLAN WILL RELY ON SUBSTANTIALLY LESS THAN 2 BILLION A YEAR FROM TOUGHER ENFORCEMENT BUT THE PRESIDENT IS ALSO EXPECTED TO PROPOSE SEVERAL SIGNIFICANT TAX INCREASES AIMED AT MULTINATIONAL CORPORATIONS THAT COULD RAISE AS MUCH AS 9 BILLION OVER THE NEXT FIVE YEARS MR CLINTON IS EXPECTED TO PROPOSE ALLOWING COMPANIES TO DEDUCT ONLY 50 OF THEIR SPENDING ON BUSINESS MEALS AND ENTERTAINMENT INSTEAD OF THE CURRENT 80 THAT WOULD RAISE MORE THAN 3 BILLION A YEAR THE ADMINISTRATION HAS SCALED BACK INITIAL PLANS TO CUT SPENDING ON VARIOUS AGRICULTURAL SUBSIDIES BUT STILL IS EXPECTED TO PROPOSE SAVING ABOUT 3 BILLION OVER THE NEXT FOUR OR FIVE YEARS IN A CONTROVERSIAL PROPOSAL THE ADMINISTRATION ALSO IS EXPECTED TO PARE THE CONSTRUCTION BUDGET OF THE VETERANS AFFAIRS DEPARTMENT THE NATIONAL SCIENCE FOUNDATION HOWEVER IS SLATED FOR A SIZABLE BUDGET INCREASE THE NEW BROAD ENERGY TAX IS TO BE BASED ON THE HEAT CONTENT OF FUELS MEASURED IN BRITISH THERMAL UNITS BUT AN ENERGY DEPARTMENT SOURCE SAID THE TAX RATE FOR EACH MILLION BTUS OF OIL WOULD BE SET AT DOUBLE THE RATE FOR COAL AND NATURAL GAS BY THIS ADJUSTMENT THE ADMINISTRATION HOPES TO MAKE THE PERCENTAGE INCREASE IN THE PRICE OF OIL COAL AND NATURAL GAS ROUGHLY EQUIVALENT THE MOVE IS APPARENTLY DESIGNED TO APPEASE THE POLITICALLY INFLUENTIAL COAL INDUSTRY IN AN ATTEMPT TO IMPROVE THE CREDIBILITY OF ITS DEFICITREDUCTION PLAN THE WHITE HOUSE CONFIRMED YESTERDAY THAT IT RELIED ON CONGRESSIONAL BUDGET OFFICE ECONOMIC ASSUMPTIONS RATHER THAN THE MORE OPTIMISTIC PROJECTIONS BY MR CLINTON'S ECONOMISTS MR CLINTON'S ECONOMIC ADVISERS EXPECT THE ECONOMY TO GROW 31 AFTER INFLATION IN 1993 33 IN 1994 27 IN 1995 25 IN 1996 AND 25 IN 1997 A WHITE HOUSE OFFICIAL SAID BUT ITS DEFICITREDUCTION ESTIMATES ARE BASED ON THE MORE CONSERVATIVE CBO FORECAST WHICH SHOWS THE ECONOMY GROWING 28 IN 1993 3 IN 1994 28 IN 1995 26 IN 1996 AND 22 IN 1997 SEPARATELY HILLARY RODHAM CLINTON SPENT SEVERAL HOURS ON CAPITOL HILL MEETING WITH HOUSE REPUBLICANS AS WELL AS DEMOCRATS TO SEEK HELP IN CRAFTING AND PASSING LEGISLATION TO OVERHAUL THE US HEALTH SYSTEM THAT PUTS HER ONE STEP AHEAD OF HER HUSBAND SAID HOUSE REPUBLICAN WHIP NEWT GINGRICH OF GEORGIA COMPLAINING THAT THE PRESIDENT HAS IGNORED CONGRESSIONAL REPUBLICANS TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9302170058 930217 WHAT'S NEWS BUSINESS AND FINANCE STOCKS PLUMMETED AMID FEARS HIGHER TAXES COULD CHOKE OFF THE ECONOMIC RECOVERY THE DOW JONES INDUSTRIALS FELL 8294 POINTS OR 24 TO 330949 ITS BIGGEST ONEDAY POINT DECLINE SINCE NOV 15 1991 THE S&P 500STOCK INDEX LOST 1067 OR 24 WHILE THE NASDAQ COMPOSITE INDEX FELL 2515 POINTS OR 36 TO 66539 THE TREASURY'S 30YEAR BOND LOST LESS THAN A QUARTER OF A POINT OR 250 FOR EACH 1000 FACE AMOUNT THE DOLLAR FELL DRUG STOCKS TUMBLED IN THE WAKE OF THE PRESIDENT'S ATTACK ON THE PHARMACEUTICAL INDUSTRY MERCK SKIDDED 2 1/2 POINTS OR 62 TO 37 7/8 WHILE PFIZER PLUNGED 4 1/8 OR 64 TO 60 1/8 CLINTON IS EXPECTED TO PROPOSE UNDOING SUBSTANTIAL PARTS OF THE 1986 TAX REFORM ACT BY RAISING TAX RATES AND REVIVING SOME TAX CREDITS THE PLAN IS EXPECTED TO PROPOSE THE RESTORATION OF THE SOCALLED PASSIVE LOSS DEDUCTION BUT ONLY FOR PEOPLE WHO DERIVE MOST OF THEIR INCOME FROM REAL ESTATE THE ADMINISTRATION HAS BEGUN A REVIEW OF A TRADE AGREEMENT IN WHICH THE EUROPEAN COMMUNITY AGREED TO CURB SUBSIDIES FOR AIRBUS INDUSTRIE OPEC OIL MINISTERS AGREED TO REDUCE THE FLOW OF OIL MARCH 1 IN A MOVE INTENDED TO SUPPORT PRICES BUT THE PLAN MET WITH SKEPTICISM AS CRUDE OIL FUTURES PRICES FOR MARCH DELIVERY FELL 45 CENTS A BARREL TO 1953 THE US IS INVESTIGATING POSSIBLE BIDRIGGING IN BREAD SALES TO SCHOOLS AND MILITARY BASES RALSTON PURINA AND ANHEUSERBUSCH SAID THEIR BAKING DIVISIONS HAD RECEIVED SUBPOENAS INVESTORS HAVE PUSHED THE TOTAL AMOUNT OF MONEY INVESTED IN BOND MUTUAL FUNDS ABOVE THE TOTAL IN MONEYMARKET FUNDS FOR THE FIRST TIME RONALD PERELMAN HAS MADE A BID TO ACQUIRE SCI TELEVISION INC AND MAY EVENTUALLY TRY TO JOIN FORCES WITH ANOTHER TV STATION GROUP OWNER BANK LENDERS WOULD FACE FEWER REGULATORY BARRIERS UNDER THREE CHANGES BEING CONSIDERED BY CLINTON BUT IT'S UNCLEAR IF THE PRESIDENT WILL INCLUDE THE MEASURES IN HIS ECONOMIC PLAN GM IS BACKING AWAY FROM ITS DECISION TO STOP MAKING LOANS TO NONGM DEALERSHIPS BECAUSE OF THE CAR MAKER'S IMPROVED FINANCIAL SITUATION GOLD FUTURES PRICES SURGED MORE THAN 3 AN OUNCE DRIVEN BY THE SLUMP IN THE DOLLAR AND US STOCKS NYNEX WAS FOUND GUILTY OF CRIMINAL CONTEMPT FOR VIOLATIONS OF THE BELL SYSTEM BREAKUP DECREE AND FINED 1 MILLION THE VIOLATIONS STEMMED FROM OPERATIONS OF A SMALL SOFTWARE FIRM THAT NYNEX ACQUIRED IN APRIL 1986 TOWERS FINANCIAL HAS STOPPED MAKING PAYMENTS ON 200 MILLION IN BONDS ACCORDING TO A LAWSUIT FILED BY THE TRUSTEE FOR THE BONDS JAPAN'S TRADE SURPLUS SOARED 39 IN JANUARY FROM THE YEAR EARLIER FIGURE REACHING 529 BILLION AMERICA WEST AIRLINES IS HOLDING TALKS WITH AMERICAN AIRLINES ABOUT POSSIBLE JOINT MARKETING AND MANAGEMENTSERVICES PACTS BOTH SIDES SAID THE TALKS DON'T INVOLVE ANY EQUITY INVESTMENT IN AMERICA WEST HOSPITALITY FRANCHISE SYSTEMS INC AGREED TO BUY THE SUPER 8 MOTELS FRANCHISING SYSTEM FOR 125 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 485598 OFF 917 COMMODITIES OIL 1953 A BARREL OFF 45 CENTS DOW JONES FUTURES INDEX 12522 UP 070 SPOT INDEX 12515 UP 076 9302170057 930217 MARKETING & MEDIA ABC'S SATURDAY SCHEDULE TO LOSE 3 DISNEY PROGRAMS NEW YORK ABC IS LOSING ITS THREE WALT DISNEYSUPPLIED SATURDAY MORNING ANIMATED SHOWS THIS FALL LEAVING THE NETWORK WITH A BIG HOLE IN ITS CHILDREN'S LINEUP DISNEY TOOK THE UNUSUAL STEP OF PULLING ONE CARTOON THE HALFHOUR GOOF TROOP FROM THE ABC LINEUP BECAUSE THE NETWORK'S LICENSE FEE WAS NOT KEEPING PACE WITH RISING ANIMATION PRODUCTION COSTS SAID GARY KRISEL PRESIDENT OF WALT DISNEY TELEVISION ANIMATION A UNIT OF THE WALT DISNEY CO A SECOND SHOW DARKWING DUCK WILL LEAVE ABC FOR SYNDICATION IN DISNEY'S WEEKDAY AFTERNOON LINEUP DISNEY DIDN'T NEED ANYMORE EPISODES MR KRISEL SAID SO IT DECIDED TO PULL IT OFF THE NETWORK BECAUSE EACH EPISODE WAS BEING PRODUCED AT A DEFICIT THE THIRD SHOW THE NEW ADVENTURES OF WINNIE THE POOH WAS ALREADY SCHEDULED TO LEAVE ABC FOR SYNDICATION DISNEY CALLED IT AN UNFORTUNATE COINCIDENCE THAT ALL THREE WERE LEAVING ABC AT ONCE ABC IS A UNIT OF CAPITAL CITIES/ABC INC 9302170056 930217 INTERNATIONAL BRIEF KAWASAKI STEEL CORP JAPANESE STEELMAKER CITING US VENTURE WILL POST LOSS JAPAN'S KAWASAKI STEEL CORP SAID A 300 MILLION EXTRAORDINARY LOSS AT ARMCO STEEL CO A US JOINTVENTURE UNIT WILL DRAG NET INCOME INTO THE RED FOR THE FISCAL YEAR ENDING MARCH 31 THE LOSS IS TIED TO A RESTRUCTURING KAWASAKI SAID IT EXPECTS TO POST A CONSOLIDATED NET LOSS OF 29 BILLION YEN 2404 MILLION A SWING FROM THE 144 BILLION YEN PROFIT IT HAD IN THE FISCAL YEAR ENDED MARCH 31 1991 IT SAID PRETAX PROFIT SHOULD DROP 66 TO 18 BILLION YEN FROM 5328 BILLION YEN IN THE PAST YEAR THE COMPANY SAID FULLYEAR GROUP SALES ARE NOW SEEN AT 132 TRILLION YEN 1094 BILLION DOWN 43 FROM 138 TRILLION YEN IN THE YEARAGO PERIOD A KAWASAKI SPOKESMAN SAID THE COMPANY WHICH NORMALLY DOESN'T RELEASE FORECASTS MADE THESE NUMBERS PUBLIC BECAUSE IT REPRESENTED A SIGNIFICANT DROP FROM LAST YEAR'S FIGURES 9302170054 930217 INTERNATIONAL BRIEF BOWATER PLC UK CONGLOMERATE TO BUY SPECIALTY COATINGS OF US UK INDUSTRIAL CONGLOMERATE BOWATER PLC AGREED TO BUY SPECIALTY COATINGS INTERNATIONAL INC A US COMPANY FOR 434 MILLION INCLUDING ASSUMED DEBT TO PAY FOR THE ACQUISITION BOWATER LAUNCHED A 295 MILLION 419 MILLION RIGHTS ISSUE OF NEW SHARES OFFERING EXISTING HOLDERS ONE NEW SHARE AT 400 PENCE 568 FOR EVERY SIX ALREADY OWNED ONLY LAST MARCH BOWATER RAISED 3335 MILLION FOR TWO OTHER ACQUISITIONS THE RIGHTS PRICE REPRESENTED AN 18 DISCOUNT ON BOWATER'S CLOSING PRICE ON THE LONDON STOCK EXCHANGE MONDAY IN A PRELIMINARY REPORT BOWATER ALSO SAID 1992 PRETAX PROFIT ROSE ABOUT 48 TO 147 MILLION REVENUE ROSE 24 TO 157 BILLION 223 BILLION BOWATER SAID IT EXPECTED TO PAY A FULLYEAR DIVIDEND OF 115 PENCE UP 11 FROM THE YEAR BEFORE AFTER ACCOUNTING FOR THE EARLIER RIGHTS ISSUE 9302170053 930217 ROLL OVER BEETHOVEN YOU TOO COLTRANE CLASSICAL SAX IS BACK PLAYERS HOPE FOR BETTER TIMES NOW THAT THE WHITE HOUSE HAS A TOOTER FOR A TENANT BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN THE NIGHTS GET LONG DOWN AT THE OVAL OFFICE AND THE HOWLS OF CRITICS REACH A FEVERISH PITCH BILL CLINTON CAN SMILE WITH THE KNOWLEDGE THAT HIS ELECTION HAS MADE AT LEAST ONE GROUP OF AMERICANS DELIRIOUSLY HAPPY THANKS IN PART TO PRESIDENT CLINTON'S WILLINGNESS TO TOOT HIS HORN ON NATIONAL TELEVISION SALES OF SAXOPHONES ARE WAY UP TEACHERS REPORT A BIG INCREASE IN SAX STUDENTS COMPACTDISK SALES OF POP SAXOPHONE STARS SUCH AS DAVID SANBORN AND KENNY G ARE BOOMING SO ARE RECORDINGS BY JAZZ GIANTS LIKE JOHN COLTRANE BUT NONE ARE SMILING MORE THAN CLASSICAL SAXOPHONE PLAYERS ONE OF MUSIC'S MOST IGNORED SUBSPECIES WHILE THE SAXOPHONE A RELATIVELY NEW INSTRUMENT IS A STAPLE IN THE JAZZ WORLD AND IN BIG BANDS AND A PART OF EVERY HIGHSCHOOL MARCHING BAND IT HAS HAD TO FIGHT FOR LEGITIMACY AMONG MUSICIANS OF THE UPPER CRUST ALTHOUGH QUITE A BIT OF CONTEMPORARY CLASSICAL MUSIC HAS BEEN WRITTEN FOR THE SAXOPHONE RELATIVELY LITTLE HAS BEEN SYMPHONIC MANY ORCHESTRAL MUSICIANS LOOK DOWN THEIR NOSES AT JAZZ AND AT THE SAXOPHONE AND THE PEOPLE WHO PLAY IT AS REPRESENTATIVES OF A LOWER CLASS OF ART WRITES TORONTO SYMPHONY SAXOPHONIST DAVID TANNER IN SAXOPHONE SYMPOSIUM MAGAZINE BUT SYMPHONIC SNOBBERY HASN'T DISSUADED A SMALL CROP OF YOUNG CLASSICALLY TRAINED SAXOPHONE PLAYERS WHO THINK THE NATION'S FIRST INSTRUMENT DESERVES MORE RESPECT THEY INSIST THAT THEIR INSTRUMENT BELONGS NOT JUST IN SMOKY JAZZ CELLARS OR ON MTV BUT ALSO IN CARNEGIE HALL OR DARE THEY SUGGEST THE EAST ROOM OF THE WHITE HOUSE NOW THAT A FELLOW SAXOPHONIST IS IN RESIDENCE THERE THE DOOR JUST MIGHT BE CRACKED OPEN WHO CARES IF MR CLINTON PLAYED YOUR MAMA DON'T DANCE AT HIS INAUGURAL GIG RATHER THAN GLAZUNOV'S QUARTET IN B FLAT MAJOR WE'VE HAD HUNDREDS OF OFFERS TO ENTERTAIN AT THE WHITE HOUSE SAYS SPOKESMAN NEEL LATTIMORE CLASSICAL SAXOPHONES AREN'T ON THE SCHEDULE NOW HE ADDS NOT THAT THEY WON'T BE ETHEL SIEGEL AN ARTISTS' MANAGER SAYS I JUST WROTE A LETTER TO THE SOCIAL SECRETARY OF MRS CLINTON HER CLIENTS INCLUDE THE AMHERST SAXOPHONE QUARTET BASED IN BUFFALO NY MS SIEGEL THINKS WHITE HOUSE TALENT BOOKERS SHOULD LOOK BEYOND TRADITIONAL MUSICAL GROUPS LIKE STRING QUARTETS TO SOMETHING MORE IN LINE WITH THE BOSS'S MUSICAL TASTE CHAMBER MUSIC SOUNDS LIKE A WHOLE BUNCH OF DEAD GUYS PLAYING MUSIC NOBODY'S LISTENED TO FOR HUNDREDS OF YEARS SAYS STEPHEN ROSENTHAL AMHERST'S TENOR PLAYER AND LEADER SAXOPHONE QUARTETS ON THE OTHER HAND OFFER DIVERSITY SAYS MR ROSENTHAL DREDGING UP ONE OF MR CLINTON'S FAVORITE BUZZWORDS I REALLY WANTED TO GET THESE GUYS INTO THE INAUGURAL MS SIEGEL SAYS OF THE AMHERST QUARTET WHICH HAS A TONIGHT SHOW APPEARANCE ON ITS RESUME IT WOULD HAVE BEEN A PERFECT OPPORTUNITY TO SHOW WHAT THE INSTRUMENT CAN DO IN FACT THE SAXOPHONE CAN DO A LOT LEARNING A FEW NOTES ISN'T TOUGH IT'S AN EASY INSTRUMENT TO LEARN HOW TO PLAY BADLY SAYS BRAD HUBBARD BARITONE PLAYER IN THE NEW WORLD SAXOPHONE QUARTET BASED IN WINSTONSALEM NC THE SAXOPHONE A REED INSTRUMENT THAT BRIDGES THE TONAL GAP BETWEEN WOODWINDS AND BRASS IS AMAZINGLY VERSATILE PLAYED AT ITS OUTER LIMITS IT CAN COVER ENORMOUS MUSICAL TERRITORY DISPLAYING BOTH POWER AND DELICACY PLUS A SURPRISING RANGE OF TONAL COLOR IN GREAT HANDS IT CAN BE WONDERFUL IN LESSER HANDS IT CAN BE RATHER DANGEROUS SAYS MR ROSENTHAL ASKED WHERE MR CLINTON'S MUSICIANSHIP FALLS ON THIS SPECTRUM THE NEW WORLD QUARTET'S STEPHEN POLLOCK SAYS IS THIS GOING IN THE PAPER WE DO WANT TO PLAY AT THE WHITE HOUSE USING SOPRANO ALTO TENOR AND BARITONE INSTRUMENTS SAXOPHONE QUARTETS PLAY EVERYTHING FROM 18THCENTURY CHAMBER MUSIC ORIGINALLY SCORED FOR STRINGS TO SUCH PLAYFUL MODERN AMERICAN COMPOSITIONS AS DRASTIC MEASURES BY RUSSELL PECK AND SAX APPEAL BY DAVID STOCK I'VE NEVER PLAYED DRASTIC MEASURES' WHEN PEOPLE WEREN'T SMILING LIKE CRAZY WHEN WE FINISHED SAYS MR POLLOCK IT'S FRESH IT'S A KICK IN THE PANTS THE QUARTET PLAYED IT IN NEW YORK LAST MAY IN THE CONCERT ARTISTS GUILD COMPETITION AND WON FIRST PRIZE BEATING OUT 378 ENTRIES FROM AROUND THE WORLD SO WHY ISN'T THE SAXOPHONE HAULED OUT FOR MORE CLASSICAL PERFORMANCES TIMING MOSTLY WHEN THE IRASCIBLE BELGIAN INSTRUMENT MAKER ADOLPHE SAX PATENTED THE SAXOPHONE IN THE 1840S THE ORCHESTRA AS WE KNOW IT TODAY WITH VIOLINS CELLOS CLARINETS TRUMPETS PERCUSSION INSTRUMENTS AND THE LIKE WAS LARGELY IN PLACE THE FAMILY OF SAXOPHONES ENVISAGED BY THE ODDBALL MR SAX INCLUDED A SUPERBASS MODEL SO HUGE IT WOULD HAVE HAD TO BE PLAYED OUT OF A SECONDSTORY WINDOW RIVAL INSTRUMENT MAKERS FOUND MR SAX SO LOATHSOME THAT THEY BEAT HIM UP BURNED DOWN HIS FACTORY AND FORCED HIM INTO FINANCIAL RUIN ALSO IN PLACE WAS A HUGE SHARE OF THE CURRENT SYMPHONIC REPERTOIRE MOZART HAYDN BEETHOVEN AND THE OTHER MASTER COMPOSERS WROTE MUSIC FOR THE ORCHESTRA THEY KNEW WHICH DIDN'T INCLUDE THE SAX HOW DO YOU PUT SAXOPHONES INTO BEETHOVEN'S NINTH ASKS CALIFORNIA COMPOSER GEORGE ROMANIS YOU DON'T WHICH LEAVES THE CLASSICAL SAXOPHONIST WAITING BY THE PHONE FOR AN INFREQUENT INVITATION TO PLAY ONE OF THE DOZEN OR SO SYMPHONIC PIECES THAT CALL FOR THE INSTRUMENT PERHAPS RAVEL'S BOLERO OR SOMETHING BY PROKOFIEV OR LEONARD BERNSTEIN EVEN THAT CAN BE A TRIAL LISTEN TO MR TANNER THE TORONTO SYMPHONY PLAYER DESCRIBE THE SAXOPHONE PART IN IBERIA A SUITE BY SPANISH COMPOSER ISAAC ALBENIZ TENOR SAXOPHONE PLAYS ONLY IN ONE OF FIVE MOVEMENTS YOU MUST SIT QUIETLY FOR HALF AN HOUR OR LONGER BEFORE YOU PLAY DIFFICULT AND NERVE WRACKING TOURING AN ORDEAL FOR THE MOST RENOWNED MUSICIAN CAN BE EVEN MORE ONEROUS WHEN YOU PLAY PETIT QUATUOR POUR SAXOPHONES ON AN INSTRUMENT THAT MOST PEOPLE ASSOCIATE WITH A CHICAGO BLUES CLUB OR FUNKADELIC ROCK ON MTV A PRISM QUARTET CONCERT LAST FALL AT A COMMUNITY CENTER IN HAWAII DREW A TOTAL AUDIENCE OF FIVE SMALL CHILDREN WHO WANDERED IN FROM THE SWIMMING POOL AS FOR SELLOUTS THE ANN ARBOR MICH QUARTET GAVE A CONCERT TWO YEARS AGO AT RICKS COLLEGE IN REXBURG IDAHO AMERICA'S LARGEST TWOYEAR MORMON COLLEGE NOTES ALTO SAX PLAYER MICHAEL WHITCOMBE THEY INVITED US BACK BUT THINGS ARE LOOKING UP THIS WEEKEND PRISM WILL DEBUT AT NEW YORK'S PRESTIGIOUS LINCOLN CENTER WHERE THE QUARTET WILL PLAY A PIECE BY 28YEAROLD COMPOSER MICHAEL RUSZCZYNSKI AMHERST QUARTET MEMBERS TRY TO DISTANCE THEMSELVES FROM CHAMBER GROUPS WHOM THEY CONSIDER TRADITIONAL AND STARCHY THEIR PRESS KIT INCLUDES A BLACK AND WHITE PUBLICITY PHOTO OF WHAT APPEARS TO BE THE HOODLUM QUARTET THE FOUR MUSICIANS LOUNGING AROUND IN DARK GLASSES WITH BLACK TIES ASKEW AND SHIRTS UNBUTTONED TO THE WAIST FIFTEEN YEARS FIVE COMPACT DISKS ROUGHLY 1000 CONCERTS AND PR HUMOR NOTWITHSTANDING PUBLIC APPRECIATION OF THE AMHERST QUARTET AND ITS CLASSICAL COLLEAGUES REMAINS LESS THAN FORTE IT'S NOT LIKE WE'RE MAKING GODZILLIONS OF DOLLARS SAYS MR ROSENTHAL HE SAYS THE AMHERST QUARTET GROSSED 211000 LAST YEAR LOVERS OF SERIOUS SAX HOPE THIS WILL CHANGE NOW THAT THEIR INSTRUMENT IS POLITICALLY CHIC EVERYBODY BRINGS UP BILL CLINTON SAYS MR WHITCOMBE OF PRISM I GUESS MY QUESTION IS ARE THEY GOING TO PICK UP ON ALL FACETS OF THE INSTRUMENT OR DO THEY WANT TO DO 20 TV SHOWS WITH KENNY G 9302170052 930217 BUSINESS BRIEF CS FIRST BOSTON INC FIRST BOSTON CORP UNIT SELLS ITS INTEREST IN SEALY CORP FIRST BOSTON CORP COMPLETED THE SALE OF ITS MAJORITY INTEREST IN SEALY CORP TO THE CHICAGO INVESTMENT FIRM ZELL/CHILMARK FUND LP AND BANKERS TRUST NEW YORK CORP FOR 250 MILLION SEALY FORMERLY OHIO MATTRESS CO WAS BOUGHT OUT IN 1989 FOR 980 MILLION THE PURCHASE WAS COMPLETED WITH HELP FROM A 457 MILLION BRIDGE LOAN OR INTERIM FINANCING PROVIDED BY FIRST BOSTON A UNIT OF CS FIRST BOSTON INC IN PART BECAUSE OF THE COLLAPSE OF THE JUNKBOND MARKET THE MATTRESS COMPANY'S BUYERS WERE NEVER ABLE TO REFINANCE THE DEBT FORCING FIRST BOSTON TO HELP RESTRUCTURE IT AND ABSORB MORE AND MORE OF THE INVESTMENT FIRST BOSTON ACQUIRED A 40 EQUITY STAKE IN SEALY IN EARLY 1990 AND BOOSTED IT TO 94 LAST AUGUST 9302170051 930217 TWO GROUPS ASK FOR PROBE CLAIMING GM SHRED PAPERS A WALL STREET JOURNAL NEWS ROUNDUP WASHINGTON TWO CONSUMER GROUPS SEEKING THE RECALL OF 47 MILLION GENERAL MOTORS CORP PICKUP TRUCKS ASKED THE JUSTICE DEPARTMENT TO LOOK INTO ALLEGED SHREDDING OF DOCUMENTS BY THE AUTO MAKER THE CENTER FOR AUTO SAFETY AND PUBLIC CITIZEN CLAIMED THAT THE DOCUMENTS MIGHT HAVE SHED LIGHT ON THE 197387 CHEVROLET AND GMC CK SERIES FULLSIZE PICKUPS WHOSE SIDEMOUNTED GASOLINE TANKS ARE NOW THE SUBJECT OF A FEDERAL SAFETY INVESTIGATION THE GROUPS SAID THEIR ALLEGATION IS SUPPORTED BY A NOV 5 1991 DEPOSITION VIDEOTAPED BY A FORMER GM ENGINEER THEODORE KASHMERICK SHORTLY BEFORE HIS DEATH HE SAID HE WAS ADVISED AROUND 1982 AGAINST KEEPING PAPERWORK ON THE GM TRUCK DESIGN BECAUSE IT WAS POTENTIALLY CONTROVERSIAL AND THAT EVERY DOCUMENT IN HIS POSSESSION WAS TAKEN AWAY AUTO MAKERS ARE REQUIRED TO KEEP SAFETYRELATED DOCUMENTS FOR FIVE YEARS ACCORDING TO THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION GM SAID IT HAD PREVIOUSLY PROMISED THE ATLANTA JURY TO INVESTIGATE ALLEGATIONS THAT IT DESTROYED EVIDENCE IN ORDER TO BEGIN THE INVESTIGATION THE AUTO MAKER IS IN THE PROCESS OF HIRING AN INDEPENDENT COUNSEL GM SAID WE HAVE BEEN INVESTIGATING THIS MATTER INTERNALLY AND HAVE THUS FAR FOUND NO EVIDENCE OF DESTRUCTION OF DOCUMENTS TO AVOID DISCOVERY OR OTHERWISE TO OBSTRUCT THE PROCESS OF JUSTICE GM SAID GM DESCRIBED THE CENTER FOR AUTO SAFETY'S ALLEGATIONS ABOUT THE PICKUPS' SAFETY AS SIMPLY WRONG 9302170050 930217 TOSHIBA BEGINS REBATE PROGRAM IRVINE CALIF TOSHIBA AMERICA INFORMATION SYSTEMS INC A UNIT OF TOSHIBA CORP SAID IT IS STARTING A DEALER REBATE PROGRAM FOR THE COMPANY'S T6400 SERIES OF PORTABLE COMPUTERS THE COMPANY SAID THE OFFER WHICH WILL LOWER THE PRICE TO CUSTOMERS BY AS MUCH AS 500 APPLIES TO THE ENTIRE T6400 SERIES AND IS EFFECTIVE IMMEDIATELY 9302170049 930217 TECHNOLOGY IN THE LAB SCIENTIST SEEKS BROADER ACCESS TO FIBER OPTICS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HAWTHORNE NY PAUL GREEN JR RUNS THE WORLD'S MOST BORING TELEVISION NETWORK THIS AFTERNOON ON CHANNEL ONE A BALLERINA TURNING A PIROUETTE OVER AND OVER AGAIN IN AN ENDLESSLY REPEATING VIDEO LOOP ON CHANNEL TWO THE 24HOUR LIVE BROADCAST FROM A MAJOR INTERNATIONAL BUSINESS MACHINES CORP PARKING LOT CHANNEL THREE THE BEHINDCLOSEDDOORS VIEW OF AN EMPTY IBM LAB CHANNEL FOUR AN ANIMATED SCENE OF MOLECULES BREAKING APART DR GREEN KEEPS A TV IN HIS OFFICE TUNED TO ONE OF THESE CHANNELS AT ALL TIMES BUT NOT FOR THE RIVETING ACTION ON THE SCREEN THE VETERAN ENGINEER IBM'S MANAGER OF ADVANCED OPTICAL NETWORKING IS WORKING ON A RADICAL NEW TECHNOLOGY FOR THE WIRES THAT LINK HIS NETWORK HIS PROJECT DUBBED RAINBOW INVOLVES THE ARCANE PHYSICS OF LIGHT TRAVELLING ON STRANDS OF GLASS BUT HIS AMBITIONS ARE ANYTHING BUT ARCANE AS HE SEES IT RAINBOW WILL LOOSEN THE PHONE COMPANIES' STRANGLEHOLD ON THE FIBEROPTIC NETWORKS THEY USE TO SEND PHONE CALLS AND OTHER MESSAGES HE WANTS TO THROW THESE NETWORKS OPEN AT STAGGERINGLY CHEAP RATES DIRECTLY TO CUSTOMERS LETTING THEM SOMEDAY SEND VIDEOS ENCYCLOPEDIAS AND CATSCANS AS EASILY AS THEY SEND FAXES TODAY BEHIND DR GREEN'S VISION ARE TWO BATTLES ONE SCIENTIFIC ONE POLITICAL THE SCIENTIFIC STRUGGLE INVOLVES HIS ALTERNATIVE DESIGN FOR THE TRAFFIC COP THAT SORTS AND CONTROLS MESSAGES ON THE PHONE NETWORK TODAY THE PHONE INDUSTRY DOES THIS JOB WITH BIG COMPUTERS CALLED SWITCHES MESSAGES COURSE THROUGH THE FIBEROPTIC NETWORK IN THE FORM OF FLASHES OF LIGHT THE SWITCHES TAKE THE LIGHT SIGNALS CONVERTED TO ELECTRONIC DATA AND SEND THEM ALL TO THE RIGHT DESTINATIONS NORMALLY MESSAGES CAN'T GET ON OR OFF THE OPTICAL FIBERS WITHOUT GOING THROUGH A PHONE COMPANY'S SWITCH RAINBOW DISPENSES WITH THE COMPUTERIZED SWITCHES INSTEAD IT BORROWS AN ANALOGY FROM THE WORLD OF RADIOS JUST AS EACH RADIO STATION BROADCASTS ON ONLY ONE BAND OF THE RADIO SPECTRUM EACH PHONE USER WOULD BE ABLE TO TAP DIRECTLY INTO THE OPTICAL FIBER NETWORK AND TRANSMIT HIS CALL ON ONE CHANNEL OF THE LIGHT SPECTRUM ON THE OTHER END THE RECIPIENT WOULD USE AN OPTICAL TUNER TO DIAL ACROSS THE SPECTRUM AND PICK UP THE CORRECT CHANNEL THE POLITICAL BATTLE IS MUCH MORE COMPLEX DR GREEN THINKS THE PHONE INDUSTRY HAS LIMITED WHAT CUSTOMERS CAN SEND TO EACH OTHER BY FORCING EVERYTHING TO GO THROUGH ITS SWITCHES GET THE PHONE COMPANY OUT OF THE WAY HE CRIES FURTHERMORE HE CONTENDS THE INDUSTRY IS SQUANDERING VAST AMOUNTS OF UNUSED CAPACITY KNOWN IN PHONESPEAK AS DARK FIBER THAT COULD BE MADE AVAILABLE TO CUSTOMERS WHO WANT TO CONNECT THEIR OWN TUNERS TO THE NETWORK IN A 1991 PAPER DR GREEN WROTE THAT ONE THIRD OF ALL PHONEINDUSTRY FIBER IS DARK MOREOVER THE REMAINING FIBER USES ONLY 01 OF ITS POTENTIAL HE WROTE A GENIAL 69YEAROLD WHO BUILDS PIPE ORGANS IN HIS SPARE TIME DR GREEN ALSO HAS A STRONG COMBATIVE STREAK NEXT TO THE TECHNICAL TOMES ON HIS OFFICE SHELF HE KEEPS AN AEROSOL CAN MARKED BULL REPELLENT A BADGE ON HIS WALL AMID AWARDS AND DIPLOMAS PROCLAIMS HIM AN ADVANCED WILD WEASEL HE IS CERTAINLY STIRRING MORE TUMULT THAN MOST LAB ENGINEERS THE ECONOMIST AND TECHNOLOGY WRITER GEORGE GILDER VISITED DR GREEN LAST YEAR AND THEN PROCLAIMED HIS WORK WOULD IGNITE A REVOLUTION COMPARABLE TO THE STEAM ENGINE AND THE INTEGRATED CIRCUIT SINCE GLASS AND LIGHT ARE CHEAP AND ABUNDANT JUST LIKE SILICON RAINBOW WILL MAKE COMMUNICATIONS POWER VIRTUALLY FREE MR GILDER WRITES IN HIS FORTHCOMING BOOK TELECOSM THE PHONE INDUSTRY NOT SURPRISINGLY DOESN'T SHARE DR GREEN'S ENTHUSIASM FOR LETTING OUTSIDERS USE ITS DARK FIBER SEVERAL PHONE COMPANIES ARE EMBROILED IN A LONG LEGAL BATTLE WITH THE FEDERAL COMMUNICATIONS COMMISSION FIGHTING AN ORDER TO OPEN UP DARK FIBER ROBERT LUCKY A VICE PRESIDENT AT THE REGIONAL PHONE COMPANIES' BELLCORE RESEARCH CONSORTIUM AND LONGTIME FRIEND OF DR GREEN'S CALLS RAINBOW A REALLY COMPELLING TECHNICAL IDEA BUT HE SAYS IT HAS SOME BIG PROBLEMS HE DOESN'T THINK HUNDREDS OF LIGHT CHANNELS CAN RUN LONG DISTANCES WITHOUT BREAKING UP OR INTERFERING WITH EACH OTHER HE ALSO DOESN'T THINK PHONE CUSTOMERS CAN HANDLE THE LOGISTICAL NIGHTMARE OF MANAGING AND MAINTAINING ALL THOSE CHANNELS A JOB THE PHONE COMPANIES CURRENTLY HANDLE DR GREEN ACKNOWLEDGES THAT BOTH DR LUCKY'S OBJECTIONS ARE SIGNIFICANT BUT HE BELIEVES NEW TECHNIQUES FOR AMPLIFYING LIGHT WILL SOLVE THE LONGDISTANCE PROBLEM HE SAYS RESEARCHERS AT IBM BELLCORE AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ARE ALL WORKING ON THE PROBLEM OF MANAGING BIG OPTICAL NETWORKS WITHOUT TRADITIONAL SWITCHES ANOTHER SHORTCOMING OF RAINBOW AS THE RADIO ANALOGY SUGGESTS ANY TRANSMISSION WOULD BE BROADCAST TO ALL RECEIVERS ON THE NETWORK TO HAVE A PRIVATE CONVERSATION BOTH SENDER AND RECEIVER WOULD HAVE TO ENCRYPT THEIR SIGNALS TO GET RAINBOW RUNNING DR GREEN HAD TO BUILD A LITTLE FIBER NETWORK OF HIS OWN HE PERSUADED IBM'S LAB MANAGERS TO SPEND ABOUT 1 MILLION TO SNAKE 17 MILES OF FIBER CABLE THROUGH WESTCHESTER COUNTY NY BETWEEN IBM'S MAIN LAB IN YORKTOWN HEIGHTS AND THE LAB HERE WHERE HE WORKS RIGHT NOW EACH END POINT ON THE RAINBOW NETWORK NEEDS ABOUT 16000 OF EQUIPMENT THE TUNER AN OPTICAL FILTER COSTS ABOUT 6000 ALONE LIGHT STREAMS INTO THE FILTER COMES OUT THE OTHER END AND FALLS ON A LIGHT DETECTOR THAT CONVERTS IT TO COMPUTER DATA THE TRANSMISSION ULTIMATELY SHOWS UP ON AN ORDINARY PERSONALCOMPUTER SCREEN DR GREEN THINKS THE 16000 PRICE WOULD DROP TO 160 IF THE PARTS BECAME MASSPRODUCED AFTER A LONG CAREER AS A LAB RESEARCHER DR GREEN SAYS HE'S SUDDENLY FOUND HIMSELF TRANSFORMED INTO A POLEMICIST ON BUSINESS STRATEGY AND INDUSTRIAL POLICY I'M TRYING NOT ONLY TO BE AN ENGINEER BUT TO MAKE THIS REVOLUTION HAPPEN HE SAYS IF I HAVE TO LEARN HOW TO SPELL FCC THEN I WILL 9302170048 930217 WHO'S NEWS HONEYWELL INC NAMES BONSIGNORE CHAIRMAN AND CHIEF EXECUTIVE MINNEAPOLIS HONEYWELL INC SAID MICHAEL R BONSIGNORE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE AND CHAIRMAN MR BONSIGNORE 51 YEARS OLD SUCCEEDS JAMES J RENIER 63 WHO WILL REMAIN AS CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THIS MAKER OF CONTROL EQUIPMENT MR RENIER'S RETIREMENT WAS WIDELY EXPECTED BY WALL STREET ANALYSTS WHO SAID HE HAD EXPRESSED THE DESIRE TO STEP DOWN BEFORE HITTING THE COMPANY'S MANDATORY RETIREMENT AGE OF 65 MR RENIER HAD NONEMERGENCY HEARTBYPASS SURGERY IN JUNE 1992 AFTER WHICH A TEAM OF EXECUTIVES BEGAN OVERSEEING DAYTODAY OPERATIONS THE COMPETITION FOR THE POST OF CHIEF EXECUTIVE WAS BETWEEN MR BONSIGNORE AND D LARRY MOORE WHO WERE PUT INTO THE RACE IN 1990 WHEN MR RENIER GAVE BOTH OF THEM THE SAME TITLE AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR MOORE WAS IN CHARGE OF HONEYWELL'S SPACE AND AVIATION UNIT AND INDUSTRIAL BUSINESSES WHILE MR BONSIGNORE WAS IN CHARGE OF HONEYWELL'S HOME AND BUILDING CONTROL UNIT AS WELL AS INTERNATIONAL OPERATIONS AS PART OF THE TRANSITION MR MOORE 56 WAS NAMED CHIEF OPERATING OFFICER AND TO THE NEW POST OF PRESIDENT THE MOVES TAKE EFFECT AT THE COMPANY'S APRIL 20 ANNUAL MEETING OF SHAREHOLDERS THE COMPETITION FOR THE CEOPOST NARROWED IN DECEMBER WHEN HONEYWELL'S THIRD EXECUTIVE VICE PRESIDENT CHRISTOPHER J STEFFEN RESIGNED HE QUICKLY REEMERGED AS THE CHIEF FINANCIAL OFFICER OF EASTMAN KODAK CO WALL STREET ANALYSTS SAID THE TRANSITION SIGNALS THAT HONEYWELL PLANS TO PUT MORE OF AN EMPHASIS ON MARKETING AND INTERNATIONAL EXPANSION TWO AREAS THAT MR BONSIGNORE HAS EMPHASIZED INTERNATIONAL OPERATIONS GENERATE ABOUT 40 OF HONEYWELL'S REVENUE NOW AND ARE EXPECTED TO CONTRIBUTE ABOUT 50 BY THE END OF THE DECADE ANALYSTS SAID SINCE SERVING SIX YEARS IN THE NAVY MR BONSIGNORE HAS SPENT HIS ENTIRE CAREER AT HONEYWELL INCLUDING A STINT IN BRUSSELS AS PRESIDENT OF HONEYWELL EUROPE MR MOORE JOINED HONEYWELL IN 1986 WHEN IT ACQUIRED THE AEROSPACE GROUP OF SPERRY WHERE HE HAD WORKED FOR 24 YEARS 9302170047 930217 WHO'S NEWS DESTEC ENERGY INC DESTEC ENERGY INC HOUSTON JACK G HELFENSTEIN WAS NAMED TO THE BOARD OF THIS POWER PRODUCER FILLING A VACANCY BASED IN HORGEN SWITZERLAND MR HELFENSTEIN 57 YEARS OLD IS GLOBAL VICE PRESIDENT FOR HYDROCARBONS AND ENERGY FOR DOW CHEMICAL CO 9302170046 930217 WHO'S NEWS DURIRON CO DURIRON CO DAYTON OHIO JOHN S HADDICK 63 YEARS OLD RETIRED AS CHIEF EXECUTIVE OFFICER ALTHOUGH HE WILL REMAIN CHAIRMAN WILLIAM M JORDAN 49 SUCCEEDED MR HADDICK MR JORDAN RETAINED HIS TITLE AS PRESIDENT BUT NO LONGER HAS THE CHIEF OPERATING OFFICER POSITION THE MAKER OF CORROSIVERESISTANT EQUIPMENT DIDN'T NAME A NEW CHIEF OPERATING OFFICER 9302170045 930217 STEELWORKERS' PACT WITH INLAND ST LOUIS THE UNITED STEELWORKERS SAID 480 OF ITS MEMBERS RATIFIED A CONTRACT WITH JOSEPH T RYERSON & SONS INC A UNIT OF INLAND STEEL INDUSTRIES INC OVER THE LIFE OF THE CONTRACT WHICH IS RETROACTIVE TO AUG 1 AND EXPIRES AUG 1 1996 WORKERS WILL RECEIVE BONUS PAYMENTS OF 2300 EACH A 50 CENTS AN HOUR WAGE INCREASE AND 2 A MONTH MORE IN PENSION BENEFITS FOR EACH YEAR OF SERVICE 9302170044 930217 AMERICA WEST AMERICAN AIR MULL VENTURES BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA WEST AIRLINES AND AMERICAN AIRLINES SAID THEY ARE IN PRELIMINARY TALKS ABOUT A POSSIBLE JOINTMARKETING ARRANGEMENT AND MANAGEMENTSERVICES AGREEMENTS BOTH SIDES WERE QUICK TO POINT OUT THAT THE DISCUSSIONS DON'T INVOLVE ANY EQUITY INVESTMENT BY THE AMR CORP UNIT IN AMERICA WEST WHICH HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION SINCE JUNE 1991 A JOINT MARKETING ARRANGEMENT BETWEEN THE TWO COULD LINK THEIR FREQUENT FLYER PROGRAMS COORDINATE SOME ADVERTISING AND PROMOTION EFFORTS OR OTHERWISE ENHANCE THE PROFITABILITY OF BOTH CARRIERS ACCORDING TO THE CARRIERS' JOINT STATEMENT ANY VENTURE BETWEEN THE TWO COMPANIES LIKELY WOULD FIT INTO THE BROADER PARAMETERS OF EACH AIRLINE'S STRATEGY AMERICA WEST HAS CUT COSTS CONSISTENTLY SINCE IT FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS AND ALREADY HAS LAID OFF THOUSANDS OF EMPLOYEES ELIMINATED EXCESS PLANES FROM ITS FLEET AND CUT FLIGHTS IT STILL HOWEVER NEEDS TO ATTRACT MORE PASSENGERS IN ORDER TO SUCCESSFULLY EMERGE FROM CHAPTER 11 AMERICA WEST NEEDS TO FOCUS ON A MARKET NICHE THAT TAKES ADVANTAGE OF OUR ABILITY TO PROVIDE LOWCOST SERVICE SAID AMERICA WEST'S CHAIRMAN BILL FRANKE HE SAID AMERICA WEST WOULD REMAIN AN INDEPENDENT CARRIER UTILIZING ITS OWN AIRCRAFT AND PROPERTIES FOR ITS PART THE FAR LARGER AMERICAN HAS BEEN DEVELOPING MORE FEEBASED SERVICES IT CAN OFFER CHEAPLY TO OTHER CARRIERS SUCH AS CLEANING MAINTENANCE AND TRAINING SERVICES FOR BOTH DOMESTIC AND FOREIGN AIRLINES IN DECEMBER FOR EXAMPLE AMR SIGNED A MULTIYEAR PACT WITH CANADIAN AIRLINES IN WHICH IT AGREED TO PROVIDE REVENUE ACCOUNTING PRICING AND OTHER MANAGEMENT SERVICES TO CANADIAN UNLIKE THE AMERICA WEST TALKS HOWEVER AMR ALSO AGREED TO INVEST 195 MILLION IN CANADIAN THE TWO SIDES SAID THEY ARE SEEKING THE APPROVAL OF THE BANKRUPTCY COURT OVERSEEING AMERICA WEST'S CASE TO EXCHANGE NONPUBLIC INFORMATION AND CONDUCT DETAILED DISCUSSIONS BOTH CARRIERS SAID THEY WOULD HAVE NO FURTHER COMMENT UNTIL THEY CONCLUDE THEIR DISCUSSIONS AMERICA WEST AIRLINES FELL 3125 CENTS TO 50 CENTS A SHARE IN OVERTHECOUNTER TRADING AMR WAS DOWN 225 TO 6075 IN LATE NEW YORK STOCK EXCHANGE TRADING 9302170043 930217 INTERNATIONAL JAPAN'S SURPLUS IN TRADE WIDENED 39 IN JANUARY BY MASAYOSHI KANABAYASHI AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS CONTINUED TO SOAR LAST MONTH POSTING A 39 RISE FROM THE PREVIOUS JANUARY THE SURGE THE RESULT IN PART OF SLUMPING DOMESTIC DEMAND AND THUS LOWER IMPORTS PROBABLY WILL FURTHER STRAIN RELATIONS BETWEEN JAPAN AND ITS TRADING PARTNERS THE JANUARY TRADE SURPLUS REACHED THE EQUIVALENT OF 529 BILLION AND MARKED THE 25TH CONSECUTIVE MONTH IN WHICH THE SURPLUS EXCEEDED YEAREARLIER LEVELS JAPAN'S TRADE SURPLUS FOR 1992 WAS A RECORD 10663 BILLION ACCORDING TO REVISED FINANCE MINISTRY FIGURES RELEASED YESTERDAY MEANWHILE GOVERNMENT OFFICIALS STEPPED UP THEIR RHETORIC AGAINST ANTICIPATED TRADE ATTACKS FROM THE CLINTON ADMINISTRATION NOBORU HATAKEYAMA A VICE MINISTER AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID THE GOVERNMENT IS PREPARING RULES TO ALLOW THE CABINET TO RETALIATE IF A COUNTRY CAUSES UNILATERAL ACTION AGAINST JAPAN CLINTON ADMINISTRATION OFFICIALS WHO ARE REVIEWING US TRADE POLICY WITH JAPAN HAVE REPEATEDLY SAID THEY CONSIDER THE TRADE DEFICIT WITH JAPAN TO BE A MAJOR TRADE PROBLEM CONGRESS AS WELL AS THE US AUTO STEEL AND SEMICONDUCTOR INDUSTRIES HAVE BEEN PRESSING FOR A TOUGH RESPONSE MR HATAKEYAMA SPEAKING AT A NEWS CONFERENCE FOR FOREIGN REPORTERS ALSO SAID JAPAN WOULD FILE A COMPLAINT WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE IF THE US CARRIES OUT THREATS TO RAISE DUTIES ON JAPANESE MINIVANS BUT MR HATAKEYAMA ACKNOWLEDGED THAT JAPAN ALREADY HAS LAWS ALLOWING RETALIATION SO THE NEW RULES WOULDN'T GIVE THE CABINET ANY NEW POWERS AND HE SAID JAPAN WOULD RETALIATE ON MINIVAN TARIFFS OR OTHER ISSUES ONLY IF AN INDEPENDENT GATT PANEL RULES IN JAPAN'S FAVOR STILL HIS REMARKS UNDERSCORE JAPAN'S GROWING ATTEMPTS TO APPEAR LESS ACCEPTING OF UNILATERAL US TRADE ACTIONS WE ARE THE NO 1 IMPORTING COUNTRY OF FARM PRODUCTS FROM THE US AND WE ARE THE NO 2 IMPORTING COUNTRY OF MANUFACTURED GOODS FROM THE US MR HATAKEYAMA SAID THOSE TWO SIMPLE FACTS WILL BE ENOUGH FOR JAPAN TO HAVE LEVERAGE FOR JANUARY JAPAN'S TRADE SURPLUS WITH THE US WIDENED 21 TO 295 BILLION IN ALL OF LAST YEAR JAPAN POSTED A 4356 BILLION TRADE SURPLUS WITH THE US 14 WIDER THAN A YEAR EARLIER EXPORTS TO THE US ROSE 64 IN JANUARY FROM A YEAR EARLIER TO 718 BILLION WHILE IMPORTS FROM THE US FELL 18 TO 423 BILLION JOSEPH T GORMAN CHAIRMAN OF THE USJAPAN BUSINESS COUNCIL AND OF TRW INC SAID AT A TOKYO NEWS CONFERENCE THAT JAPAN SHOULD TAKE CLEAR STEPS TO REDUCE ITS TRADE SURPLUS WITH THE US HE SAID THAT FOR POLITICAL AND ECONOMIC REASONS JAPAN'S TRADE SURPLUS WITH THE REST OF THE WORLD IS PROBABLY NOT SUSTAINABLE YASUSHI OKADA AN ECONOMIST AT DAIWA SECURITIES ECONOMIC RESEARCH INSTITUTE ESTIMATES THAT JAPAN'S TOTAL TRADE SURPLUS WILL SOAR TO 142 BILLION THIS YEAR IF CURRENT ECONOMIC CONDITIONS IN JAPAN PREVAIL BUT MR HATAKEYAMA SAID THE GOVERNMENT EXPECTS AN ECONOMIC RECOVERY LATER THIS YEAR THAT COULD REVERSE THE TREND IN THE LONG TERM A RISE IN THE VALUE OF THE YEN AGAINST THE DOLLAR WOULD ALSO HELP BECAUSE IT MAKES JAPANESE EXPORTS MORE EXPENSIVE HE ADDED FOR ABOUT A YEAR HOWEVER THE RISE IN THE YEN WOULD LIKELY INCREASE JAPAN'S SURPLUS BECAUSE EXPORT VOLUME WOULD PROBABLY STAY CONSTANT WHILE THE DOLLAR VALUE OF THOSE GOODS WOULD RISE HE SAID 9302170042 930217 LETTERS TO THE EDITOR A LOT OF TALK YOUR JAN 20 ARTICLE BANKS FORCE GRIPING CUSTOMERS TO FORGO COURTS FOR ARBITRATION DESCRIBES MEDIATION AS A NONBINDING FORM OF THIS ARBITRATION PROCESS MEDIATION AND ARBITRATION WHILE BOTH ALTERNATIVE DISPUTE RESOLUTION PROCESSES ARE NOT THE SAME MEDIATION IS A CONFIDENTIAL PROCESS VOLUNTARILY ENTERED INTO BY THE DISPUTING PRINCIPALS WHO WITH THE HELP OF A MEDIATOR DEVELOP A MUTUALLY ACCEPTABLE RESOLUTION TO THEIR DISPUTE THE MEDIATOR UNLIKE AN ARBITRATOR HAS NO AUTHORITY TO RENDER A DECISION 9302170039 930217 TRAVEL AIRLINES BET THAT PAMPERING PASSENGERS WILL BUILD LOYALTY SOFTEN FARE INCREASES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AIRLINES ARE PROMOTING A FLURRY OF NEW PERKS TO WOO BUSINESS TRAVELERS BRITISH AIRWAYS OFFERS COTTON PAJAMAS TO FIRSTCLASS PASSENGERS ON OVERNIGHT TRANSATLANTIC FLIGHTS CONTINENTAL AIRLINES' BUSINESSCLASS SERVICE FEATURES FRENCHDESIGNED SLEEPER SEATS A LONG WINE LIST AND THE STEAMY FILM BASIC INSTINCT DISPLAYED ON ARMCHAIR VIDEO SCREENS ON ULTRAIR FLIGHTS THERE IS A LONGSTEMMED ROSE IN THE LAVATORY AFTER SURVIVING FINANCIALLY RUINOUS FARE WARS THE AIRLINES ARE DESPERATE TO DISTINGUISH THEMSELVES IN WHAT IS OTHERWISE A COMMODITY SERVICE AND TO JUSTIFY HIGHER PRICES PRIMARILY FOR BUSINESS TRAVELERS ON LONGHAUL AND INTERNATIONAL FLIGHTS CUSTOMERS ARE NO DOUBT GRATEFUL FOR THE ATTENTION BUT WILL MASSAGES ON VIRGIN ATLANTIC AIRWAYS OR PREBOARDING CUPS OF COMPLIMENTARY FRESCA COURTESY OF UNITED AIRLINES STIMULATE DEMAND OR STEAL MARKET SHARE PROBABLY NOT TRAVELINDUSTRY OBSERVERS SAY FLIERS ARE NOTORIOUSLY PRAGMATIC AND THEY CHOOSE FLIGHTS PRIMARILY BECAUSE OF PRICE FREQUENTFLIER PROGRAMS AND SCHEDULING FROM OUR PERSPECTIVE I DON'T THINK THE PERKS WILL MAKE ANY DIFFERENCE AT ALL SAYS DAVID VANSELOW VICE PRESIDENT OF COMMUNICATIONS AT FRANKLIN LIFE INSURANCE CO UNIT OF AMERICAN BRANDS INC IN SPRINGFIELD ILL ABOUT 125 EMPLOYEES FROM THE CORPORATE HEADQUARTERS TRAVEL REGULARLY THE THINGS THAT MATTER MOST ARE TIMELINESS OF FLIGHTS FRIENDLINESS OF SERVICE AND REASONABLENESS OF COSTS NOT WHETHER OUR CHICKEN IS SERVED ON CELLOPHANE OR CRYSTAL ADDS ROBERT THALER PRESIDENT OF SEA & AIR TRAVEL INC A TRAVEL AGENCY IN FAIRLAWN NJ FREQUENTFLIER PROGRAMS ARE REALLY THE ONLY METHOD THE AIRLINES HAVE TO CREATE BRAND LOYALTY IN MY EXPERIENCE ADDITIONAL AMENITIES AREN'T TOO EFFECTIVE UNLESS PEOPLE DIDN'T WANT TO FLY THE AIRLINE IN THE FIRST PLACE BECAUSE SERVICE WAS SO BAD NEVERTHELESS OVERHAULING MENUS AND INSTALLING INFLIGHT PHONES REPRESENT THE LATEST GAMBIT BY MANY CARRIERS TO HELP RESTORE PROFITS AIRLINE EXECUTIVES SAY REVENUES ARE SUFFERING BECAUSE PLANES ARE CARRYING A POOR MIX OF CUSTOMERS TOO MANY LEISURE TRAVELERS PAYING DISCOUNTED FARES AND TOO FEW BUSINESS TRAVELERS PAYING FOR FULLFARE TICKETS WHICH ARE TYPICALLY TWICE THE PRICE OF ADVANCEPURCHASE TICKETS BUSINESS CLASS WHICH PRIMARILY APPLIES TO INTERNATIONAL ROUTES AND FIRST CLASS ARE ALSO HURTING AS CORPORATIONS TRIM TRAVEL BUDGETS TO SELL THEIR HIGHREVENUE SEATS AIRLINES ARE TRYING TO OFFER BETTER SERVICE EVEN IF THAT MEANS HIGHER COSTS FEW AIRLINES HAVE PURSUED THIS STRATEGY MORE AGGRESSIVELY THAN CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC IN HOUSTON WHICH HAS OPERATED IN CHAPTER 11 BANKRUPTCY PROCEEDINGS SINCE 1990 IN RECENT YEARS ONLY ABOUT 6 OF CONTINENTAL'S PASSENGERS FLYING OVERSEAS WERE BUYING BUSINESSCLASS SEATS OR ABOUT ONETHIRD THE INDUSTRY AVERAGE WE'VE SPENT 2 1/2 YEARS RESEARCHING WHAT IT WOULD TAKE TO OBTAIN PREFERENCE WITH BUSINESS FLIERS OR INDUCE SOMEONE TO SWITCH LOYALTY SAYS JOHN NELSON VICE PRESIDENT OF MARKETING FOR CONTINENTAL THE RESULT CONTINENTAL UNVEILED LATE LAST YEAR ITS 21 MILLION BUSINESSFIRST CABINS ON ITS FLEET OF BOEING 747 AND DC10 AIRCRAFT WHICH ARE USED ON INTERNATIONAL FLIGHTS THE CABINS REPLACED FIRSTCLASS SERVICE AND DOUBLED THE NUMBER OF BUSINESS SEATS IN THIS CASE HIGHTECH RECLINERS ALSO FEATURED IS FINE DINING INCLUDING DELICACIES LIKE FREE RANGE CHICKEN AND STEAMED MAINE LOBSTER OF COURSE THE FOOD BETTER BE GOOD A ROUNDTRIP TICKET FROM HOUSTON TO PARIS IN BUSINESSFIRST CLASS IS 3538 OR 46 MORE THAN A FULLFARE COACH TICKET AND SEVERAL TIMES MORE THAN A RESTRICTED DISCOUNTED COACH SEAT THE CREATURE COMFORTS OF BUSINESSFIRST IMPRESSED LAWRENCE W LIPMAN A LAWYER IN GLEN ROCK NJ WHO BOUGHT TWO BUSINESSCLASS TICKETS FOR LONDON THIS SUMMER AFTER HE SAW CONTINENTAL'S NEWSPAPER ADS THE SLEEPER SEAT CLINCHED IT HE SAYS I'M VERY NERVOUS WHEN I FLY I TOOK PHYSICS IN HIGH SCHOOL BUT I STILL DON'T KNOW WHAT KEEPS THE PLANE UP SO I FEEL BETTER WHEN THEY GIVE ME THE GOODIES BUT IF MR LIPMAN IS ANY INDICATION CONTINENTAL MAY NOT REAP THE WINDFALL IT HOPES FROM THE NEW SERVICE THE LAWYER PAID ONLY 578 APIECE FOR TWO COACH TICKETS THEN CASHED IN FREQUENTFLIER MILES FOR A BUSINESSCLASS UPGRADE THE AIRLINE SAYS INITIAL REACTION TO BUSINESSFIRST HAS BEEN OUTSTANDING WHILE THE AIRLINES MAY BE FETING SOME PEOPLE UP FRONT THE PROLETARIAT IN THE REST OF THE CABIN HAS LITTLE TO CHEER ABOUT FOR THOSE PASSENGERS AIRLINES ARE CUTTING COSTS BY REDUCING MEAL SERVICE AND ALL FLIERS HAVE BEEN HURT BY HIGHER FEES FOR LOST TICKETS OR REFUNDS AND REDUCED FLIGHT SERVICE TO SMALLER CITIES SOME ANALYSTS BELIEVE THE PERK WARS ARE MISGUIDED FOR ONE THING GAINING AN OBVIOUS SERVICE EDGE IS DIFFICULT IN AN INDUSTRY OF COPYCATS WINGS HOLDINGS CORP'S NORTHWEST AIRLINES INTRODUCED IN DECEMBER 1991 A PACKAGE OF ENHANCED AIRPORT SERVICES FOR FULLPAYING BUSINESS PASSENGERS ON FLIGHTS BETWEEN THE AIRLINE'S MINNEAPOLIS / ST PAUL HUB AND O'HARE INTERNATIONAL AIRPORT IN CHICAGO THOSE CUSTOMERS HAVE ACCESS TO A SEPARATE CHECKIN LINE AND FOOD BUFFET IN THE GATE AREA LAST OCTOBER UAL CORP'S UNITED AIRLINES ANNOUNCED NEW AIRPORT AMENITIES OF ITS OWN FOR CUSTOMERS FLYING BETWEEN ITS HUB AT O'HARE AND SIX OTHER CITIES INCLUDING MINNEAPOLIS / ST PAUL PREBOARDING REFRESHMENTS AND AUTOMATIC TICKETING MACHINES ARE AMONG THE PERQUISITES A UNITED SPOKESMAN SAYS I CAN'T DENY THE AIRPORT AMENITIES ARE SIMILAR BUT WE'VE DEVELOPED OUR OWN PROGRAM AND ARE ACTING IN OUR OWN BEST INTERESTS AIRLINE CRITICS SAY THESE TYPES OF INITIATIVES REPRESENT IDLE DIVERSIONS FOR AN INDUSTRY THAT HAS HAD LOSSES OF 8 BILLION IN THREE YEARS AFTER ALL BOTH EASTERN AIRLINES AND MIDWAY AIRLINES PULLED SEATS OUT OF CABINS TO EXTEND LEG ROOM SHORTLY BEFORE THEY SHUT DOWN TRANS WORLD AIRLINES WHICH IS IN CHAPTER 11 BANKRUPTCY PROCEEDINGS IS NOW TRYING THE SAME THING BUT HOPES FOR A BETTER FATE TO PULL OUT OF THE INDUSTRY'S LATEST PROLONGED TAILSPIN AIRLINES WILL ULTIMATELY HAVE TO ADDRESS THE BIG PROBLEMS OF BLOATED COSTS SAYS THOMAS TRANTUM AN AIRLINE ANALYST WITH JC BRADFORD & CO IN NASHVILLE TENN FUEL INEFFICIENCY LOWPRODUCTIVITY WORK FORCE FLIGHT SCHEDULES THESE ARE THE GUT ISSUES MEANWHILE SOME AIRLINES WILL APPARENTLY ALSO PULL OUT ALL STOPS TO CODDLE THEIR BEST CUSTOMERS BRITISH AIR RECENTLY INTRODUCED SPECIAL SLEEP SERVICE ON OVERNIGHT FLIGHTS BETWEEN BOSTON/NEW YORK AND LONDON FIRSTCLASS PASSENGERS CAN PREORDER MEALS AND EAT THEM ON THE GROUND INSIDE THE CABIN THEY SIT IN CHAIRS DRESSED WITH SHEETS AND ARE GIVEN TWOPIECE NAVY SLEEP SUITS THEY'RE QUITE DECENT SAYS VAL GOODING BRITISH AIR'S GENERAL MANAGER OF MARKETING IN LONDON YOU CAN CHANGE IN THE LOO GO BACK TO YOUR SEAT AND CUDDLE UP AND GO TO SLEEP 9302170038 930217 TREASURY PLANS TO SELL 232 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 375 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2357 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON MAY 27 1993 AND AUG 27 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794C93 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794E26 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9302170037 930217 KASLER BOARD BACKS MERGER PLAN TO GIVE 66 STAKE TO A HOLDER HIGHLAND CALIF KASLER CORP A SOUTHERN CALIFORNIA BUILDER OF HIGHWAYS SAID ITS BOARD PRELIMINARILY APPROVED A MERGER OF THE COMPANY WITH A PRIVATE CONSTRUCTION AND MINING CONCERN OWNED BY MONTANA INDUSTRIALIST DENNIS R WASHINGTON KASLER'S BOARD APPROVED THE EXECUTION OF A LETTER OF INTENT WITH WASHINGTON CONTRACTORS GROUP INC UNDER WHICH MR WASHINGTON WOULD GET 66 OF THE MERGED COMPANIES AND KASLER'S SHAREHOLDERS WOULD RECEIVE 34 KASLER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JL FELLER SAID THE COMBINED COMPANIES WOULD BE STRONGLY CAPITALIZED AND WELLPOSITIONED FOR EXPECTED FUTURE GROWTH IN INFRASTRUCTURE AND OTHER HEAVY CONSTRUCTION PROJECTS KASLER ALSO SAID MR WASHINGTON WHO NOW HOLDS 83 OF KASLER'S STOCK OUTSTANDING AGREED NOT TO ACQUIRE FURTHER SHARES PENDING THE EXECUTION OF A DEFINITIVE AGREEMENT THE COMPANY AGREED NOT TO SOLICIT OTHER MERGER PROPOSALS OR SIMILAR TRANSACTIONS DURING THAT PERIOD ACCORDING TO A PLAN DISCLOSED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION LAST WEEK THE COMBINED COMPANIES WOULD BE ACQUIRED BY A HOLDING COMPANY THAT WOULD RETAIN THE KASLER NAME AND CONTINUE TO BE PUBLICLY TRADED MR WASHINGTON WOULD CONTROL IT THROUGH WASHINGTON CONTRACTORS THE FILING SAID WASHINGTON CONTRACTORS HAD NET INCOME OF 136 MILLION ON REVENUE OF 1336 MILLION IN THE YEAR ENDED NOV 30 KASLER HAD NET OF 65 MILLION ON REVENUE OF 1619 MILLION IN THE YEAR ENDED OCT 31 MR WASHINGTON DISCLOSED A LARGE OWNERSHIP STAKE IN KASLER IN JANUARY AND SAID HE INTENDED TO SEEK BOARD REPRESENTATION FROM JAN 29 TO FEB 3 HIS DW HOLDINGS FURTHER INCREASED ITS STAKE IN KASLER BY PURCHASING AN ADDITIONAL 57100 COMMON SHARES AT PRICES FROM 1025 TO 1075 A SHARE KASLER SAID THE COMPANIES EXPECT TO NEGOTIATE A FINAL MERGER AGREEMENT SUBJECT TO VARIOUS CONDITIONS AND SHAREHOLDER AND REGULATORY APPROVALS BY MARCH 10 KASLER'S STOCK WAS UNCHANGED AT 10375 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY WHEN TRADING WAS SUSPENDED PENDING THE ANNOUNCEMENT OF THE BOARD'S ACTION 9302170036 930217 COMCAST TO REDEEM DEBENTURES PHILADELPHIA COMCAST CORP A DEVELOPER OF CABLE COMMUNICATIONS SYSTEMS SAID IT INTENDS TO REDEEM ON MARCH 17 ALL 998 MILLION OF OUTSTANDING 2 3/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 DEBENTURE HOLDERS HAVE THE OPTION OF RECEIVING 103715 PER 1000 DEBENTURE OR CONVERTING EACH 1000 DEBENTURE INTO 80819 SHARES OF CLASS A SPECIAL COMMON STOCK IN LATE OVERTHECOUNTER TRADING YESTERDAY THE SHARES WERE QUOTED AT 1925 DOWN 1 BASED ON THAT PRICE EACH DEBENTURE WOULD BE VALUED AT ABOUT 1550 IN STOCK 9302170035 930217 TECHNOLOGY BRIEF CELLPRO INC THIRDQUARTER LOSS WIDENED ON RESEARCH DEVELOPMENT CELLPRO INC REPORTED A WIDENED FISCAL THIRDQUARTER LOSS CITING RESEARCH AND PRODUCTDEVELOPMENT EXPENSES THE BOTHELL WASH BIOTECHNOLOGY COMPANY WHICH IS DEVELOPING A CELLSEPARATION TECHNOLOGY THAT CAN ISOLATE SPECIFIC POPULATIONS OF BLOOD CELLS FOR USE IN BONEMARROW TRANSPLANTS AND OTHER MEDICAL APPLICATIONS SAID ITS LOSS FOR THE QUARTER ENDED DEC 31 WAS 31 MILLION OR 35 CENTS A SHARE COMPARED WITH A LOSS OF 14 MILLION OR 16 CENTS A SHARE IN THE YEARAGO PERIOD SALES IN THE PERIOD WERE 67993 UP FROM 13031 A YEAR AGO THE RESULTS ARE CONSISTENT WITH THE COMPANY'S BUSINESS PLAN SAID LARRY G CULVER THE COMPANY'S CHIEF FINANCIAL OFFICER SAID IN A STATEMENT RESEARCHANDDEVELOPMENT EXPENSES INCREASED 108 OVER THE SAME QUARTER LAST YEAR HE SAID 9302170034 930217 CD YIELDS REGISTERED LITTLE CHANGE IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 281 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 513 FROM 515 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED UP TO 310 FROM 308 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD CREPT UP TO 523 FROM 520 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 282 FROM 283 ON FIVEYEAR JUMBOS THE AVERAGE EDGED DOWN TO 528 FROM 529 BANXQUOTE SAID 9302170033 930217 FINANCING BUSINESS STERLING SOFTWARE INC STERLING SOFTWARE INC DALLAS SAID THE UNDERWRITERS OF ITS 100 MILLION PRINCIPAL AMOUNT 575 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 HAVE EXERCISED THEIR 15 OVERALLOTMENT RAISING THE ISSUE TO 115 MILLION STERLING IS A DALLAS SYSTEMS SOFTWARE COMPANY SPECIALIZING IN SERVICES TO THE FEDERAL GOVERNMENT 9302170032 930217 TECHNOLOGY BRIEF APPLE COMPUTER INC NEW MACINTOSH SOFTWARE ALLOWS LINK TO IBM AS/400S APPLE COMPUTER INC CUPERTINO CALIF SAID IT WILL BEGIN SELLING A SOFTWARE PACKAGE THAT ALLOWS ITS MACINTOSH COMPUTERS TO TAP INTO SOFTWARE RESIDING ON INTERNATIONAL BUSINESS MACHINES CORP'S AS/400 MIDRANGE COMPUTERS THE NEW SOFTWARE IS THE FIRST APPLE PRODUCT TO COME OUT OF THE COMPANY'S JOINT DEVELOPMENT EFFORT WITH IBM THE APPLE/IBM ENTERPRISE NETWORKING INITIATIVE WHICH SEEKS TO DEVELOP PRODUCTS THAT INTEGRATE THE MACINTOSH WITH IBM SYSTEMS AND NETWORKS APPLE'S NEW SOFTWARE ALLOWS MACINTOSH DESKTOP AND LAPTOP MACHINES TO EMULATE THE IBM TERMINALS THAT NORMALLY TIE INTO THE AS/400 IT WILL BE SOLD BY APPLE AND IBM AT PRICES STARTING AT 345 9302170031 930217 INTERNATIONAL GERMAN DECISION TO CUT MILITARY LEADS TO UNEASE AT HOME ABROAD BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BONN CHANCELLOR HELMUT KOHL'S DETERMINATION TO CUT COSTS BY REDUCING GERMANY'S ARMED FORCES THREATENS TO CREATE NEW TENSIONS WITH HIS ALLIES AND PLACE NEW PRESSURES ON MILITARY MANAGERS BUT MR KOHL INTENDS TO CUT FAR DEEPER SO HE CAN APPLY THE PEACE DIVIDEND AGAINST THE RUNAWAY COSTS OF UNIFICATION BY 1996 TROOP STRENGTH WILL BE SLASHED TO ABOUT 300000 AND THE MILITARY BUDGET WILL BE CUT 20 FROM ITS 1993 LEVEL OF 30 BILLION GOVERNMENT OFFICIALS SAY DEFENSE MINISTRY PLANNERS WHO AS RECENTLY AS DECEMBER RECKONED ON PRESERVING A FORCE OF 370000 UNTIL THE TURN OF THE CENTURY NOW CONCEDE THAT ANOTHER ROUND OF CUTS PROBABLY WILL LEAVE GERMANY WITH ONLY ABOUT 200000 TROOPS BY THAT TIME MR KOHL'S ANNOUNCEMENT OF THE CUTS EARLIER THIS MONTH CAUGHT SOME OF GERMANY'S ALLIES IN THE NORTH ATLANTIC TREATY ORGANIZATION BY SURPRISE AND ELICITED A PAINED EXPRESSION OF CONCERN FROM NATO SECRETARYGENERAL MANFRED WOERNER KLAUS BECHER A MILITARY ANALYST AT BONN'S GERMAN SOCIETY FOR FOREIGN AFFAIRS CONCEDES THAT WHAT THE GERMANS DID WAS A LITTLE BEYOND THE USUAL PRACTICES THE LACK OF PRIOR CONSULTATION REVIVED UNPLEASANT MEMORIES OF GERMANY'S PREVIOUS TROOPREDUCTION ANNOUNCEMENT THAT ONE WHICH CREATED THE 370000 TROOP CAP CAME AS PART OF MR KOHL'S UNIFICATION DEAL WITH SOVIET LEADER MIKHAIL GORBACHEV IN THE SUMMER OF 1990 AND WAS ALSO DELIVERED WITHOUT TIPPING OFF THE ALLIANCE FOR NOW GERMANY'S ALLIES MOST OF WHOM ARE CUTTING THEIR OWN ARMIES ARE HOLDING THEIR CRITICISM ON THE REDUCTION UNTIL THEY KNOW MORE ABOUT THE FORCE STRUCTURES THAT WILL BE DEVELOPED INDEED THEIR LEADING QUESTION HASN'T BEEN HOW MANY TROOPS GERMANY WILL HAVE BUT WHAT KIND OF JOINT PEACEKEEPING EFFORTS IT WILL PARTICIPATE IN ALL HASN'T BEEN AS QUIET ON THE DOMESTIC FRONT DEMANDS FOR INCREASED SAVINGS HAVE FORCED INTO THE OPEN A RIFT BETWEEN FINANCE MINSTER THEO WAIGEL AND DEFENSE MINISTER VOLKER RUEHE WHO WAS PUBLICLY DRESSED DOWN BY MR KOHL FOR COMPLAINING OF THE DICTATORSHIP OF THE FINANCE MINISTER THE FREE DEMOCRATS THE JUNIOR PARTNER TO MR KOHL'S CHRISTIAN DEMOCRATS IN THE RULING COALITION ARE ALSO GRUMBLING ABOUT NOT HAVING HAD A HAND IN PLANNING THE CUTBACKS SOME OF THE SHARPEST ATTACKS HAVE COME FROM WITHIN THE MILITARY'S RANKS IN AN UNPRECEDENTED MOVE A DEFENSE MINISTRY PERSONNEL BOARD REPRESENTING MILITARY AND CIVILIAN EMPLOYEES OF THE BUNDESWEHR SENT A LETTER TO MEMBERS OF PARLIAMENT COMPLAINING THAT PLANNING HAD BECOME AN UNBELIEVABLE MUDDLE AND THAT THOSE RESPONSIBLE HAVE PROVEN THEMSELVES INCAPABLE OF DEFINING THE FORCES' TASKS THE RESULTS THE LETTER ADDED WERE AN IMPLAUSIBLE SECURITY CONCEPT AND A FASTPROGRESSING DEMORALIZATION MEANWHILE MR RUEHE'S RECENT DECLARATION OF A FREEZE ON WEAPONS PROCUREMENTS ELICITED A SHARP REACTION FROM THE GERMAN ARMAMENTS INDUSTRY SINCE HIS ANNOUNCEMENT EARLY THIS MONTH THAT 35 BUNDESWEHR INSTALLATIONS WOULD CLOSE FEDERAL OFFICIALS HAVE BEEN BRACING FOR A TORRENT OF CRITICISM AND APPEALS FROM LOCAL AUTHORITIES FOR RECISION WORD OF THE PERSONNEL REDUCTIONS HAS ALSO REVIVED A DEBATE ON THE FUTURE OF CONSCRIPTION ALL 18YEAROLD MALES CAN EITHER TAKE THEIR CHANCES WITH THE DRAFT OR SIGN UP FOR CIVILIAN SERVICE WITH ONLY 300000 MEN IN UNIFORM AND A SIZABLE COMPLEMENT OF CAREER SOLDIERS NEEDED FOR NATO'S RAPIDREACTION FORCE CONSCRIPTION WILL BE CONSIDERABLY DIMINISHED THE LENGTH OF ARMY HITCHES HAS VARIED FROM A HIGH OF TWO YEARS TO THE CURRENT LOW OF ONE YEAR WITH A 300000MAN ARMY THE TERM MAY HAVE TO BE SHORTENED TO NINE MONTHS THAT MILITARY SOURCES SAY IS THE BARE MINIMUM FOR TRAINING PURPOSES IN A COUNTRY WHERE TWOTHIRDS OF THOSE POLLED THINK THE ARMY SHOULD BE CONVERTED TO AN ALLVOLUNTEER FORCE THIS WOULD SEEM TO OFFER A RIPE POLITICAL OPPORTUNITY BUT GERMANY'S POLITICAL ELITE FROM MR KOHL ON DOWN HAS RALLIED AROUND THE IDEAL OF MANDATORY SERVICE THEY ARGUE THAT NATIONAL SERVICE HAS DEMOCRATIZED THE GERMAN ARMY WHICH BECAUSE OF ITS POWER AND INDEPENDENCE EARLIER THIS CENTURY WAS A STATE WITHIN A STATE CONSCRIPTION SAYS MR BECHER HELPS TO INTEGRATE THE ARMY INTO SOCIETY AND BUILD LEGITIMACY FOR IT THAT'S QUITE IMPORTANT IN LIGHT OF THE HISTORY OF THE MILITARY IN 20TH CENTURY GERMANY ADDITIONALLY IF THE COSTS OF A VOLUNTEER ARMY ARE ASSESSED TO INCLUDE THE PRICE OF DOING AWAY WITH ALTERNATIVE CIVILIAN SERVICE IT MAY PROVE VASTLY MORE EXPENSIVE THAN THE CURRENT SYSTEM A THIRD OF 18 YEAR OLDS NOW OPT FOR CIVILIAN SERVICE WHICH TYPICALLY INVOLVES WORK IN HEALTH CARE SUCH AS PROVIDING MEALS ON WHEELS HOME CARE FOR THE HANDICAPPED OR AS A SCHOOL AIDE FOR A WHEELCHAIRBOUND CHILD THOSE PERFORMING ALTERNATIVE SERVICE COMPRISE 13 OF THE WORK FORCE IN THESE SOCIAL SERVICE CATEGORIES AND OFTEN RECEIVE AS LITTLE AS 7 AND CHANGE A DAY IF THERE WERE NO 'CIVIL SERVICE' TOMORROW WE WOULD HAVE TO GO TO THE FREE MARKET SAYS BERT HINTERKEUSER OF ARBEITERWOHLFAHRT A SOCIAL WORK UMBRELLA GROUP THAT NO ONE COULD AFFORD 9302170030 930217 PERELMAN BIDS FOR SCI TELEVISION INC MAY ALLY WITH ANOTHER STATION GROUP BY RANDALL SMITH AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INVESTOR RONALD PERELMAN HAS MADE A BID TO ACQUIRE SCI TELEVISION INC WHICH OWNS SIX TV STATIONS AND MAY EVENTUALLY TRY TO JOIN FORCES WITH ANOTHER STATION GROUP OWNER SUCH AS CHRISCRAFT INDUSTRIES INC MR PERELMAN HAS OFFERED TO INJECT 100 MILLION CASH TO ACQUIRE A 51 STAKE IN SCI WHICH DEFAULTED ON ITS DEBTS LAST YEAR AS PART OF A PROPOSED DEBT RESTRUCTURING IN WHICH SCI WOULD SEEK BANKRUPTCYLAW PROTECTION FROM CREDITORS THE PROPOSAL OFFERS HOLDERS OF 660 MILLION IN SCI BANK DEBT A 42 EQUITY STAKE IN DENVERBASED SCI PLUS NEW DEBT OF 559 MILLION HOLDERS OF 350 MILLION IN SCI BONDS WOULD GET A 7 EQUITY STAKE BUT HOLDERS OF 275 MILLION IN OTHER DEBT WOULD BE WIPED OUT AS PART OF THE DEAL SCI WOULD ALSO ACQUIRE A SEVENTH STATION FROM GILLETT HOLDINGS FOR 160 MILLION GILLETT IS CONTROLLED BY ONE SCI'S DEBT INVESTORS LEON BLACK OTHER KEY SCI DEBTHOLDERS BACKING THE DEAL INCLUDE VULTURE FUNDS AT TRUST CO OF THE WEST AND FIDELITY INVESTMENTS VULTURE FUNDS HOLDING THE BANK DEBT ARE ALSO BELIEVED TO OWN ENOUGH OF SCI'S BONDS TO MAKE APPROVAL OF THE PERELMAN PLAN LIKELY POSSIBLY WITHIN A MATTER OF WEEKS HOWEVER OTHER BONDHOLDERS COULD TRY TO HOLD OUT FOR BETTER TREATMENT TERMS OF THE PERELMAN OFFER WERE FIRST REPORTED YESTERDAY IN BANK LETTER A BANK INDUSTRY NEWSLETTER AIDES TO MR PERELMAN DECLINED TO COMMENT AS DID THE DEBTHOLDERS GREGORY MILMOE A LAWYER AT SKADDEN ARPS SLATE MEAGHER & FLOM WHICH REPRESENTS SCI SAID THE COMPANY WOULDN'T COMMENT MAX HOLMES DIRECTOR OF BANKRUPTCY RESEARCH AT SALOMON BROTHERS INC NOTED THAT SCI DID ITS ORIGINAL 15 BILLION LEVERAGED BUYOUT IN 1987 AT A PEAK OF SPECULATIVE FRENZY IN BOTH MEDIA ASSET VALUES AND LBO ACTIVITY SCI ALREADY RESTRUCTURED ITS DEBT ONCE IN 1990 MR PERELMAN WHO OWNS COSMETICS COMPANY REVLON INC AS WELL AS EQUITY STAKES IN SEVERAL OTHER BUSINESSES DOESN'T HAVE ANY BROADCAST HOLDINGS BUT HE IS SAID TO HAVE EXPLORED FORMING AN ALLIANCE WITH ANOTHER TV STATION OWNER SUCH AS CHRISCRAFT CHRISCRAFT DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE SITUATION SAID THE BROADCASTING CONCERN HAS TALKED TO THE PERELMAN GROUP AND OTHERS INCLUDING PARAMOUNT COMMUNICATIONS INC ABOUT POSSIBLE TRANSACTIONS INVOLVING STATION GROUPS AND PROGRAMMING CHRISCRAFT HAS BEEN INTERESTED IN EXPLORING OPPORTUNITIES TO LINK TV STATIONS FOR PROGRAMMING AND ADVERTISING EFFICIENCIES LIKE OTHERS IN THE ENTERTAINMENT INDUSTRY IT HAS ALSO EXPLORED FORMING SOME KIND OF BROADCAST NETWORK WITH ITS STATIONS PARAMOUNT IS REGARDED AS A MORE LIKELY PARTNER FOR CHRISCRAFT SINCE PARAMOUNT ALREADY OWNS BOTH TV STATIONS AND A MOVIE STUDIO AND IS ALREADY A LARGE DISTRIBUTOR OF SYNDICATED PROGRAMS TO TV STATIONS PARAMOUNT ALSO DECLINED TO COMMENT SCI'S STATIONS ARE IN BOSTON DETROIT ATLANTA CLEVELAND SAN DIEGO AND MILWAUKEE THE STATION IT PLANS TO ACQUIRE FROM GILLETT IS IN TAMPA FLA FOR THE NINE MONTHS ENDING SEPTEMBER 1992 SCI REPORTED A 594 MILLION LOSS ON REVENUES OF 1595 MILLION CHRISCRAFT IS MAJORITY HOLDER OF BHC COMMUNICATIONS INC WHICH OWNS TWO TV STATIONS AND A MAJORITY OF UNITED TELEVISION WHOSE FIVE TV STATIONS INCLUDE OUTLETS IN SAN FRANCISCO AND SAN ANTONIO LAST YEAR BHC ACQUIRED PINELANDS INC OWNER OF WWORTV IN SECAUCUS NJ MAKING CHRISCRAFT ONE OF THE TOP FEW NONNETWORK STATION GROUPS REACHING NEARLY 20 OF US HOMES ADDING THE NEW YORKAREA PROPERTY TO ITS OTHER STATIONS ESPECIALLY THE LOS ANGELES OUTLET GIVES IT THE CLOUT IT NEEDS TO LAUNCH NEW PROGRAMMING MR PERELMAN HAS THE CASH FOR THE SCI INVESTMENT FROM A RECENT SALE OF BANK ASSETS TO BANKAMERICA CORP SEPARATELY HE ANNOUNCED YESTERDAY AS EXPECTED A SALE OF 550 MILLION IN NEW REVLON JUNK BONDS TO BE SOLD PRIVATELY MAINLY TO REFINANCE EXISTING DEBT 9302170029 930217 TECHNOLOGY & HEALTH JUDGE CITES NYNEX FOR CONTEMPT SETS FINE OF 1 MILLION BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE FOUND NYNEX CORP GUILTY OF CRIMINAL CONTEMPT FOR VIOLATIONS OF THE BELL SYSTEM BREAKUP DECREE AND FINED THE COMPANY 1 MILLION THE DECISION WAS THE FIRST TIME A REGIONAL BELL COMPANY WAS FOUND GUILTY OF A CRIMINAL CHARGE IN CONNECTION WITH THE 1982 BELL SYSTEM BREAKUP DECREE THE VIOLATIONS STEMMED FROM OPERATIONS OF A TINY SOFTWARE UNIT TELCO RESEARCH CORP WHICH THE COMPANY ACQUIRED IN APRIL 1986 AND SOLD IN NOVEMBER 1990 JUDGE HAROLD GREENE WHO OVERSEES THE 1982 CONSENT DECREE FOUND THAT NYNEX WILLFULLY VIOLATED THE DECREE'S BAN ON THE SEVEN REGIONAL BELL COMPANIES PROVIDING INFORMATION SERVICES THE INFORMATION SERVICES BAN WAS LIFTED IN 1991 A NYNEX SPOKESMAN SAID THE COMPANY IS DISAPPOINTED WITH TODAY'S DECISION AND WE PLAN TO APPEAL IT AT ISSUE WAS A TELCO RESEARCH OPERATION THAT ALLOWED MCI COMMUNICATIONS CORP TO ACCESS TELCO RESEARCH'S COMPUTER FACILITIES AND SOFTWARE NYNEX STOPPED PROVIDING THE SERVICE TO MCI EARLY IN 1987 AFTER THE JUSTICE DEPARTMENT BEGAN INVESTIGATING THE PRACTICE NYNEX ARGUED THAT IT INFORMED THE JUSTICE DEPARTMENT ABOUT THE MCI ARRANGEMENT JUST AFTER IT PURCHASED TELCO RESEARCH AND EXPRESSED AN INTENTION TO MOVE THE COMPUTER MCI USED AND TRANSFER ITS OWNERSHIP TO MCI IN HIS DECISION JUDGE GREENE TOOK NYNEX TO TASK FOR NOT MAKING THE CHANGES EXPEDITIOUSLY AND INSTEAD PASSING THE RESPONSIBILITY FOR CARRYING OUT THE DECISION THROUGH VARIOUS LEVELS OF MANAGEMENT NYNEX CANNOT INSULATE ITSELF FROM ITS RESPONSIBILITIES UNDER THE DECREE BY CREATING A MERRY GO ROUND IN WHICH ITS EMPLOYEES CONTINUOUSLY DELEGATE DECREE RESPONSIBILITY JUDGE GREENE WROTE EVENTUALLY RESPONSIBILITY FOR ENSURING THAT THE DECREE IS COMPLIED WITH MUST REST SOMEWHERE AS FOR THE FINE JUDGE GREENE NOTED AS HE HAS IN THE PAST THAT 1 MILLION WOULD CONSTITUTE ONETENTH OF ONE PERCENT OF NYNEX'S AVERAGE ANNUAL NET INCOME OF OVER 1 BILLION SUCH A FINE WOULD BARELY SCRATCH THE SURFACE OF NYNEX'S CONSIDERABLE FINANCIAL RESOURCES 9302170028 930217 WHO'S NEWS UAL CORP UAL CORP CHICAGO DOUGLAS A HACKER 38 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT FINANCE OF UNITED AIRLINES A UNIT OF THIS AIRLINE HOLDING COMPANY MR HACKER HAD BEEN VICE PRESIDENT CORPORATE AND FLEET PLANNING AT AMR CORP'S AMERICAN AIRLINES 9302170027 930217 ADVERTISING CRITICS SHOOT AT NEW COLT 45 CAMPAIGN BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL IN A NEW TV COMMERCIAL THAT BEGAN AIRING NATIONALLY THIS WEEK A MESSAGE OF HOPE AND REFORMATION IS DELIVERED IN HIP STREAMOFCONSCIOUSNESS NARRATION OVER BLEAK GRAINY SHOTS OF AN INNERCITY NEIGHBORHOOD I WAS THE FIRST ONE IN MY FAMILY TO GO TO COLLEGE SAYS THE EARNEST YOUNG BLACK MAN IN SHIRT AND TIE IT WAS A NIGHTSCHOOL THING WHICH IS COOL BECAUSE NOW I CAN DO SOME GOOD THINGS GIVE BACK WHAT I LEARNED HE SITS ON A FRONT PORCH AND BECKONS TO AN EVEN YOUNGER FRIEND TO JOIN HIM AND THE BROTHERS THEY SEE ME AND MAYBE THEY'LL WANT TO DO SOMETHING BETTER FOR THEMSELVES Y'KNOW THE ROLE MODEL SAYS IT MAY LOOK LIKE AN AD FOR BIG BROTHERS OR THE UNITED NEGRO COLLEGE FUND BUT THE COLLEGE GRAD AND HIS FRONTPORCH PAL SIP FROM BOTTLES OF COLT 45 MALT LIQUOR IN THE NEW SPOT FROM G HEILEMAN BREWING CO IT MARKS A SHARP DEPARTURE FROM THE CAMPAIGN COLT 45 HAS USED SINCE THE MID1980S FEATURING THE OLDERAPPEAL MIDDLEAGED LEADING MAN BILLY DEE WILLIAMS BEAUTIFUL WOMEN AND THE TAG LINE COLT 45 IT WORKS EVERY TIME THE NEW SPOT IS PART OF A CONTROVERSIAL EFFORT TO HONE A HIPPER IMAGE FOR COLT 45 AND APPEAL MORE DIRECTLY TO THE MALTLIQUOR MARKET'S MOST IMPORTANT CUSTOMERS YOUNG INNERCITY BLACKS IT IS ALREADY REOPENING THE PITCHED DEBATE OVER THE ETHICS OF AIMING HIGHOCTANE MALT LIQUOR AT YOUNG DRINKERS IN THE INNER CITY DEUTSCH/DWORIN THE NEW YORK AD AGENCY THAT CREATED THE NEW COLT 45 COMMERCIALS SAYS THEY ARE MEANT TO PORTRAY THE VALUES AND CONCERNS OF INNERCITY CONSUMERS BUT CRITICS CALL THEM CYNICAL JUST A MORE SUBTLE VERSION OF MR WILLIAMS'S GLITZY SPOTS LINKING THE DRINK WITH ROMANTIC AND FINANCIAL PROWESS IT'S TOO BAD AND IT'S IN POOR TASTE SAYS DAVID GRANT A COMMUNICATIONS OFFICIAL WITH THE INSTITUTE ON BLACK CHEMICAL ABUSE SPEAKING OF THE NEW APPROACH IT'S INACCURATE TO PORTRAY SOMEONE LIKE THE GENTLEMAN WITH THIS SENSE OF MISSION YET ACTING AS A PROPONENT OF MALT LIQUOR RIGHT THERE ON THE STREET IT'S THE SAME OLD SUCCESS TIEIN PORTRAYING DRINKERS AS THOSE WHO ARE SUCCESSFUL SAYS GEORGE HACKER DIRECTOR OF THE ALCOHOLPOLICIES PROJECT AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST OF THE COMMERCIAL'S TEXT BUT HERE IT'S SO CYNICAL BECAUSE DRINKING THOSE HIGHALCOHOL PRODUCTS FREQUENTLY LEADS TO THE EXACT OPPOSITE RESULT THE ISSUE IS ALL THE MORE HEATED BECAUSE OF THE HEILEMAN NAME TWO SUMMERS AGO THE COMPANY WAS PLANNING TO INTRODUCE POWERMASTER AN ESPECIALLY POTENT MALT AIMED DIRECTLY AT URBAN BLACKS BUT BACKED OFF AFTER WIDESPREAD OUTCRY LATER HEILEMAN TOOK HEAT FOR ITS PART IN PRODUCING AND DISTRIBUTING ST IDES A MALT BRAND THAT FEATURES RAPPERS LIKE ICE CUBE IN ITS ADS AFTER THAT CAME STILL MORE CRITICISM FOR HEILEMAN FOR BREWING THE HIGHPOWER CRAZY HORSE MALT LIQUOR NOW COMES THE COMMERCIAL BLITZ FOR COLT 45 USING AN ALLBLACK CAST OF YOUTHFUL ACTORS THE COMPLAINTS MAY GROW WHEN HEILEMAN HARNESSES THE NEW CAMPAIGN TO COOL COLT A LIGHTER FLAVORED MALT LIQUOR THAT THE COMPANY SAYS IS DESIGNED TO BROADEN THE COLT 45 FRANCHISE COOL COLT'S SLOGAN IS TASTE THE COOL AND SUCH LIGHTER FLAVORED VERSIONS OFTEN APPEAL TO YOUNGER CONSUMERS COOL COLT IS THE ONLY ASPECT OF THIS ARTICLE ON WHICH HEILEMAN WOULD COMMENT MANY BREWINGINDUSTRY EXECUTIVES SEE NOTHING WRONG WITH SUCH EFFORTS TARGETING LOWINCOME AFRICANAMERICANS FOR MALT LIQUOR IS NO DIFFERENT FROM SELLING THE MERCEDESBENZ LINE TO WHITE AFFLUENT SUBURBANITES THEIR ARGUMENT GOES IT REEKS OF PATERNALISM AND RACISM TO SUGGEST IT IS INAPPROPRIATE SAYS DONNY DEUTSCH EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR AT DEUTSCH/DWORIN WHY SHOULD COLT 45 SHY AWAY FROM PORTRAYING ITS CORE CONSUMERS JUST BECAUSE MORE THAN 90 OF THEM ARE MALE AND BLACK I DON'T UNDERSTAND WHY BEER CAN'T BE SEGMENTED WITH INTELLIGENCE RESPECT HONESTY AND RELEVANCE TO BLACK CONSUMERS MR DEUTSCH SAYS JUST LIKE YOU CAN TARGET TO AFFLUENT BUSINESSMEN YOU SHOULD BE ABLE TO TARGET URBAN DOWNSCALE WHITE WOMEN OR URBAN BLACK MEN OR CHILDREN THAT'S MARKETING WHO ARE THESE PEOPLE WHO ARE SITTING AS JUDGE AND JURY ON WHO SHOULD BE TARGETED BUT CRITICS OF THE TARGETING TECHNIQUE SAY MALT MAKERS HAVE DRAWN A BEAD ON THE VERY MARKET URBAN BLACKS AND OTHER MINORITIES THAT SUFFERS DISPROPORTIONATELY FROM ALCOHOLRELATED DISEASE AND INADEQUATE ACCESS TO HEALTH CARE FOR INSTANCE AFRICANAMERICAN MEN ARE NEARLY TWICE AS LIKELY AS WHITE MEN TO DIE FROM LIVERRELATED AILMENTS AND ALMOST THREE TIMES AS LIKELY TO DIE DUE TO OTHER ALCOHOLRELATED CIRCUMSTANCES ACCORDING TO A 1989 REPORT BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION THAT RENDERS TARGETING SUCH PEOPLE FUNDAMENTALLY WRONG CRITICS CONTEND MAKANI THEMBA A PUBLICPOLICY ANALYST AT THE MARIN INSTITUTE IN SAN RAFAEL CALIF AND OTHERS SAY THE MALT BUSINESS PURSUES THE BLACK URBAN MARKET BECAUSE IT IS ONE OF THE FEW GROWTH SEGMENTS LEFT INNERCITY BLACKS HAVE HISTORICALLY LOWER LEVELS OF ALCOHOL CONSUMPTION THAN WHITES AND THEY ARE MORE LIKELY TO PURCHASE MALT AS A CHEAPER AND HIGHERKICK ALTERNATIVE TO BEER CRITICS OF THE MALTLIQUOR ADS SAY MALT LIQUOR WAS A RARE BRIGHT SPOT IN THE BEER INDUSTRY LAST YEAR ACCORDING TO M SHANKEN COMMUNICATIONS' IMPACT DATABANK WHICH TRACKS INDUSTRY SALES MALTLIQUOR SALES WERE UP 15 LAST YEAR TO 11 BILLION AT RETAIL COMPARED WITH FLAT SALES IN THE OVERALL 35 BILLION BEER CATEGORY BUT COLT WITH ITS DATED IMAGE HASN'T KEPT UP WITH THE CATEGORY COLT SALES WERE UP 125 LAST YEAR ACCORDING TO IMPACT TO ABOUT 280 MILLION THAT COMPARES WITH 18 GROWTH FOR PABST BREWING'S OLDE ENGLISH 800 NOW THE NO 1 SELLING MALT THANKS IN PART TO A BLIZZARD OF OUTDOOR ADS FEATURING BLATANT USE OF MACHO IMAGERY THE NEW CAMPAIGN FOR COLT 45 IS A STRENUOUS ATTEMPT TO CHANGE THAT PICTURE DEUTSCH/DWORIN WON THE ESTIMATED 8 MILLION ACCOUNT IN A CREATIVE SHOWDOWN LAST FALL AND ITS NEW WORK FIRST BEGAN AIRING THIS MONTH IN CLEVELAND NORFOLK AND RICHMOND VA AND OTHER MARKETS THIS WEEK THE EFFORT WAS EXTENDED TO THE CBS AND FOX NETWORKS AND CABLE NETWORKS INCLUDING BLACK ENTERTAINMENT TELEVISION AMONG THE CRITICISM SOME HEALTH ACTIVISTS CHARGE THE COLT 45 ADS PORTRAY UNDERAGE DRINKING AS ACCEPTABLE AND THEY CONTEND THAT HEILEMAN IS BREACHING THE BEER INDUSTRY'S SELFIMPOSED RESTRICTIONS AGAINST ADVERTISING ALCOHOL TO CUSTOMERS UNDER THE LEGAL DRINKING AGE OF 21 THE MARIN INSTITUTE'S MS THEMBA SAYS THE SPOTS HAVE BEEN CALCULATED TO SEND TWO DANGEROUS MESSAGES THAT THE WAY TO APPROPRIATELY BOND IS THROUGH MALT LIQUOR AND THAT MALT LIQUOR IS A BETTER ALTERNATIVE TO THE OTHER DANGEROUS THINGS THAT ARE OUT THERE VARIOUS VISUAL CUES ADD UP TO AN APPEAL TO UNDERAGE DRINKERS SHE MAINTAINS THE YOUNGER GUY IN THE PORCH SCENE LOOKS BARELY OUT OF HIS TEENS IN MS THEMBA'S VIEW ESPECIALLY GIVEN THE WAY HE TREATS THE OTHER CHARACTER AS A MENTOR I DON'T KNOW MANY 21YEAROLD AFRICANAMERICAN MALES WHO WOULD RESPOND TO ANOTHER MALE THAT WAY SHE ARGUES THE AD ALSO INCLUDES A SHOT OF A PAIR OF SNEAKERS DANGLING OVER A TELEPHONEPOLE WIRE WHEN GANG MEMBERS BADLY BEAT AN OPPONENT THEY HANG UP HIS SNEAKERS FOR ALL TO SEE MS THEMBA SAYS IN THE AD SHE MAINTAINS THIS SUGGESTS THAT THE YOUNGER CHARACTER IS SAYING NO TO STREET DANGERS BY ENGAGING IN A SAFER ACTIVITY DRINKING MALT LIQUOR MR DEUTSCH COUNTERS THAT HE HAS NEVER HEARD OF SUCH A THING THE IMAGE OF THE DANGLING SNEAKERS HE SAYS WAS LITERALLY PICKED UP AS THEY WERE SHOOTING IN LOS ANGELES AND ANY UNDERLYING MESSAGE WAS UNINTENDED THE AGENCY SAYS MOREOVER THAT EVERYONE WHO APPEARS IN THE SPOTS IS AT LEAST 25 YEARS OLD INTERPUBLIC INTERPUBLIC GROUP OF COS REPORTED FOURTHQUARTER EARNINGS OF 466 MILLION OR 62 CENTS PER SHARE UP FROM 1991 FOURTHQUARTER NET INCOME OF 41 MILLION OR 55 CENTS PER SHARE FOURTHQUARTER REVENUE WAS 5341 MILLION UP SLIGHTLY FROM FOURTHQUARTER REVENUE OF 5232 MILLION IN 1991 NET INCOME FOR THE YEAR WAS 873 MILLION OR 117 PER SHARE DOWN FROM 946 MILLION OR 130 PER SHARE IN NET INCOME LAST YEAR THE YEAREND FIGURES REFLECT A 246 MILLION CHARGE FOR ACCOUNTING CHANGES RELATED TO POSTRETIREMENT BENEFITS BEFORE THE CHARGE NET INCOME FOR THE YEAR WAS 1119 MILLION OR 150 A SHARE INTERPUBLIC IS THE NEW YORK HOLDING COMPANY THAT OWNS AD AGENCIES INCLUDING MCCANNERICKSON LINTAS AND THE LOWE GROUP 9302170026 930217 BUSINESS BRIEF LIFETIME PRODUCTS INC TENTATIVE ACCORD IS REACHED WITH NOTEHOLDER ON WIPER LIFETIME PRODUCTS INC DALLAS SAID IT TENTATIVELY SETTLED LITIGATION WITH NOTEHOLDER ELLIOTT BRACKETT WHO WILL RECEIVE A SHARE OF A PREVIOUSLY ANNOUNCED ROYALTY AGREEMENT ON ITS PATENTED WINDSHIELD WIPER MR BRACKETT ONE OF THE ORIGINAL INVESTORS IN LIFETIME HAS A SECURITY AGREEMENT THAT ENTITLES HIM TO ONETHIRD OF THE SALE OF CERTAIN ASSETS AS COLLATERAL FOR 51 MILLION IN DEBT HE SUED LIFETIME ON JAN 8 SEEKING PAYMENT OF THE DEBT AND CLAIMING THAT LIFETIME WAS IN THE PROCESS OF SELLING THE RIGHTS TO ITS TRIPLEEDGED WIPER IN VIOLATION OF THE SECURITY AGREEMENT A LIFETIME SPOKESMAN SAID MR BRACKETT AGREED TO THE TERMS OF THE SALE ANNOUNCED LAST WEEK LIFETIME SOLD THE NORTH AND SOUTH AMERICAN RETAIL SALES RIGHTS TO ITS WIPER AND THE PATENT TO A MARKETING FIRM FOR FUTURE ROYALTY PAYMENTS TERMS OF THE TENTATIVE SETTLEMENT WHICH LIFETIME EXPECTS TO COMPLETE BY MARCH 31 WEREN'T DISCLOSED MR BRACKETT SAID THE SETTLEMENT WAS AN ORAL AGREEMENT IN PRINCIPLE THAT'S IT HE TOO DECLINED TO DISCUSS THE TERMS 9302170025 930217 MIDAMERICAN'S NET FOR FOURTH QUARTER LOWER THAN EXPECTED CANAL WINCHESTER OHIO MIDAMERICAN WASTE SYSTEMS INC MAY DISAPPOINT ANALYSTS WITH 1992 FOURTHQUARTER NET INCOME OF 45 MILLION OR 19 CENTS A SHARE CHRISTOPHER L WHITE CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT SAID INCLUDING A NONRECURRING GAIN OF 10 CENTS A SHARE 1991 FOURTHQUARTER NET INCOME WAS 6 MILLION OR 27 CENTS A SHARE SHARES OUTSTANDING IN THE RECENT QUARTER WERE 24350000 COMPARED WITH 22067000 LAST YEAR THE WASTE MANAGEMENT COMPANY ALSO EXPECTS TO REPORT FOURTHQUARTER REVENUE OF 44 MILLION COMPARED WITH 36 MILLION IN THE 1991 FOURTH QUARTER FOR 1992 MIDAMERICAN SAID NET INCOME WILL REACH ABOUT 187 MILLION OR 80 CENTS A SHARE COMPARED WITH YEARAGO NET OF 171 MILLION OR 83 CENTS A SHARE INCLUDING AN 11 CENTS A SHARE NONRECURRING GAIN SHARES OUTSTANDING WERE 23357000 COMPARED WITH 20543000 A YEAR AGO REVENUE IN 1992 IS EXPECTED TO BE 167 MILLION COMPARED WITH 119 MILLION IN 1991 DENNIS P WILBURN EXECUTIVE VICE PRESIDENT AND TREASURER SAID RESULTS WERE SLIGHTLY BELOW ANALYSTS' ESTIMATES OF 21 CENTS A SHARE FOR THE FOURTH QUARTER AND 83 CENTS A SHARE FOR 1992 HOWEVER MR WHITE SAID ANALYSTS WOULD BE PLEASANTLY SURPRISED BY A 40 INCREASE IN REVENUE AND A 94 INCREASE IN NET INCOME FOR 1992 DESPITE A TRIPLING OF INTEREST EXPENSE TO 6 MILLION FROM 19 MILLION MR WHITE EXPECTS THE MONEY INVESTED IN UPGRADING AND DEVELOPING LANDFILL SITES AND LAUNCHING HAULING COMPANIES WILL START PAYING OFF IN THE COMING YEAR MR WHITE SAID HE IS COMFORTABLE BASED ON CURRENT MARKET CONDITIONS WITH ESTIMATES OF 85 CENTS TO 95 CENTS FOR 1993 9302170024 930217 BUSINESS BRIEF IOMEGA CORP DISK DRIVE MAKER WILL CUT 99 POSITIONS AND REORGANIZE IOMEGA CORP MOVING TO REDUCE EXPENSES AS REVENUE FALLS SHORT OF EXPECTATIONS SAID IT WILL ELIMINATE 99 POSITIONS AND REORGANIZE SOME OF ITS OPERATIONS THE MAKER OF REMOVABLE DISK DRIVES FOR COMPUTERS SAID IT WILL ELIMINATE THE POSITIONS ABOUT 9 OF ITS WORLDWIDE STAFF OF 1150 FROM ALL LEVELS OF THE ORGANIZATION THE COMPANY WHICH IS BASED IN ROY UTAH SAID IT WILL ALSO REORGANIZE ITS OPERATIONS INTO THREE PRODUCT GROUPS THAT WILL REPORT TO A NEW INTERNALOPERATIONS UNIT FRED WENNINGER CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT IOMEGA MADE THE MOVES IN PART BECAUSE COSTS OF DEVELOPING NEW PRODUCTS IN THE SECOND HALF OF 1992 HAVE NOT YET BEEN OFFSET BY REVENUES AND THAT BUSINESS IS BELOW THE COMPANY'S EXPECTATIONS 9302170023 930217 BUSINESS BRIEF CANADIAN PACIFIC LTD CONCERN BUYS CMBT STAKE IN CANADA MARITIME UNIT CANADIAN PACIFIC LTD SAID IT ACQUIRED THE 43 INTEREST IN ITS CANADA MARITIME LTD SHIPPING UNIT THAT HAD BEEN HELD BY CMBT OF BELGIUM CANADIAN PACIFIC A MONTREALBASED CONGLOMERATE WOULDN'T DISCLOSE TERMS OF THE TRANSACTION IT NOW OWNS 100 OF THE UNIT CANADA MARITIME FORMED BY CANADIAN PACIFIC AND ITS BELGIAN PARTNER IN 1984 OPERATES A CONTAINER SERVICE BETWEEN MONTREAL AND SEVERAL EUROPEAN PORTS IT HAD AN OPERATING PROFIT OF ABOUT 183 MILLION CANADIAN DOLLARS US146 MILLION IN 1992 ON REVENUES OF ABOUT C350 MILLION SEPARATELY CANADIAN PACIFIC'S CANADIAN PACIFIC EXPRESS & TRANSPORT LTD UNIT SAID IT AGREED TO SELL ITS CANPAR PARCELDELIVERY DIVISION TO A COMPANY KNOWN AS WESTMINSTER HOLDINGS INC TERMS OF THE TRANSACTION WHICH IS SUBJECT TO REGULATORY APPROVAL AND THE IDENTITY OF WESTMINSTER'S PRINCIPAL OWNERS WEREN'T DISCLOSED CANPAR WHICH HAD 1992 REVENUES OF ABOUT C100 MILLION WILL REMAIN BASED IN TORONTO 9302170022 930217 DIVIDEND NEWS CIRCUIT CITY STORES INC CIRCUIT CITY STORES INC RICHMOND VA SAID DIRECTORS RAISED THE DIVIDEND 33 AND DECLARED A 2FOR1 STOCK SPLIT CITING THE ELECTRONICS AND APPLIANCE RETAILER'S GROWTH TRENDS AND POTENTIAL THE SPLIT WILL BE DISTRIBUTED MARCH 19 TO SHARES OF RECORD FEB 26 THE DIVIDEND WAS RAISED TO FOUR CENTS FROM THREE CENTS ON PRESPLIT SHARES AND WILL TAKE EFFECT AT THE NEXT QUARTERLY DECLARATION AFTER THE SPLIT THE COMPANY WILL HAVE ABOUT 956 MILLION SHARES OUTSTANDING 9302170021 930217 OPEC AGREES TO CUT OUTPUT BUT PRICES FALL OIL MARKETS REACT TO DELAY IN AGREEMENT TO TRIM 14 MILLION BARRELS A DAY BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA OPEC OIL MINISTERS YESTERDAY AGREED THEY WOULD REDUCE THE FLOW OF OIL TO WORLD MARKETS BEGINNING MARCH 1 IN AN EFFORT TO SUPPORT PRICES BUT DELAYS IN REACHING THE ACCORD CAUSED OIL PRICES TO FALL YESTERDAY ON THE NEW YORK MERCANTILE EXCHANGE WHERE NEWS OF THE AGREEMENT WASN'T RECEIVED UNTIL ABOUT A HALFHOUR BEFORE TRADING CLOSED THE FUTURES PRICE OF LIGHT LOWSULFUR CRUDE FOR MARCH DELIVERY FELL 45 CENTS A BARREL TO 1953 AND PRICES WHICH HAD RISEN AS MUCH AS 2 A BARREL IN RECENT WEEKS IN ANTICIPATION OF THE AGREEMENT COULD FALL FURTHER BECAUSE OF SOME SKEPTICISM ABOUT WHETHER THE OIL PRODUCERS WILL ADHERE TO THE LOWER PRODUCTION ALLOTMENTS UNDER THE AGREEMENT MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE SCHEDULED TO PRODUCE 236 MILLION BARRELS A DAY OF OIL THROUGH THE SECOND QUARTER ABOUT 14 MILLION BARRELS A DAY LESS THAN THEY ARE WIDELY ESTIMATED TO BE PRODUCING NOW THE PACT SET INDIVIDUAL OUTPUT ALLOCATIONS FOR ALL 12 MEMBER COUNTRIES BUT ONLY 11 ENDORSED IT IRAQ WHICH IS BARRED BY THE UNITED NATIONS FROM EXPORTING OIL WAS NOT A PARTY TO THE AGREEMENT NONETHELESS OPEC REDUCED IRAQ'S NATIONAL ALLOCATION OF 500000 BARRELS A DAY BASED ON WHAT IT PRODUCES FOR DOMESTIC CONSUMPTION BY 20 IRAQ MADE CLEAR IT WAS PRODUCING NEARLY 600000 BARRELS A DAY AND THAT IT INTENDED TO PRODUCE WHATEVER IT WISHED FOR ITS DOMESTIC NEEDS BUT THE DEVICE SERVED TO FORGE A COMPROMISE WITH KUWAIT AND END FOR NOW A DISPUTE THAT HAD DELAYED THE OVERALL OPEC PACT KUWAIT HAS BEEN DEMANDING THAT IT BE ALLOWED TO PRODUCE MORE THAN OTHER MEMBERS WERE PREPARED TO ALLOW THROUGH THE GIMMICK OF THE FICTITIOUS IRAQI CUTBACK THE EMIRATE WILL BE ALLOWED TO INCREASE PRODUCTION BY 160000 BARRELS A DAY TO 16 MILLION BARRELS STILL THIS WAS ABOUT HALF A MILLION BARRELS A DAY LESS THAN KUWAIT'S GOAL WHICH WAS A QUOTA ON PAR WITH THAT OF THE UNITED ARAB EMIRATES IT TOOK FOUR DAYS OF NEGOTIATIONS AND A WRITTEN PROMISE OF A SHARP INCREASE IN KUWAIT'S SHARE OF OPEC OUTPUT WHEN ALLOCATIONS ARE MADE FOR THE THIRD QUARTER TO SATISFY THE EMIRATE YESTERDAY MANY DELEGATES DESPAIRED AS KUWAIT FOUGHT FOR THE WRITTEN PLEDGE IN AN EIGHTHOUR SESSION MINISTERIAL BAGS WERE PACKED AND UNPACKED AND FLIGHT PLANS CHANGED FINALLY THE DEAL WAS STRUCK IT SEEMED TO HAVE SATISFIED THE KUWAITI DELEGATION THOUGH THEY SAID THEY HAD DESPAIRED OF GETTING WHAT THEY CONSIDERED A FAIR DEAL I'D RATHER BE IN A SOUK WHERE I CAN AT LEAST GET A FAIR BARGAIN SAID SHAIKHA ALSABAH A KUWAITI DELEGATE AT ONE POINT BUT KUWAIT FINALLY MANAGED TO EXTRACT THE PROMISE THAT WOULD PLACE IT IN THE SAME LEAGUE AS THE UAE IF THE OTHERS HONOR THEIR WORD WHEN THIRDQUARTER ALLOCATIONS ARE MADE THE UAE WAS GIVEN A QUOTA OF 216 MILLION BARRELS A DAY A LEVEL WHICH KUWAIT SAID IT COULD HAVE BEEN PRODUCING IN A FEW WEEKS IF IT HADN'T AGREED TO REIN IN ITS OUTPUT KUWAIT HAS LONG SOUGHT AN OPEC QUOTA EQUAL TO THE UAE'S AND IT SOMETIMES HAS PRODUCED MUCH MORE DESPITE AGREEING TO A LOWER QUOTA KUWAITI DELEGATES STRESSED HERE THAT THE EMIRATE NOW INTENDED TO ABIDE BY ITS COMMITMENTS AN OPEC NEWS RELEASE OUTLINING THE AGREEMENT SPECIFIED THAT IN RETURN FOR THE SACRIFICES KUWAIT MADE OTHER MEMBERS WOULD BEGINNING JULY 1 GIVE KUWAIT PARITY WITH THE PRODUCTION ALLOCATION TO OTHER COUNTRIES WITH SIMILAR OIL RESOURCES KUWAIT'S ARGUMENT WAS THAT ITS OUTPUT HAD BEEN RISING SHARPLY MORE SHARPLY THAN OTHERS IN OPEC EITHER EXPECTED OR WERE WILLING TO BELIEVE AND THAT IT CURRENTLY WAS AT TWO MILLION BARRELS A DAY IN THOSE TERMS KUWAIT SAID IT WAS TAKING A 20 REDUCTION WHEN OTHERS WERE ONLY LOSING ABOUT 4 THE KUWAITIS CITED THE NOVEMBER AGREEMENT SETTING QUOTAS FOR THE CURRENT QUARTER UNDER WHICH KUWAIT WHILE NOMINALLY AUTHORIZED TO PRODUCE 15 MILLION BARRELS A DAY IN REALITY WAS ALLOWED TO PRODUCE AS MUCH AS IT COULD IN ORDER TO REBUILD ITS OIL INDUSTRY AFTER THE GULF WAR WE SHALL ABIDE BY THIS AGREEMENT AND BY THE FIGURE GIVEN TO US ALTHOUGH WE WILL SUFFER SAID KUWAIT OIL MINISTER ALI AHMAD ALBAGHLI BUT AT THE FIRST SIGN OTHERS ARE NOT RESPECTING THE AGREEMENT WE WILL TAKE ACTION TO INCREASE PRODUCTION BACK TO THE CURRENT LEVEL THE DELAY CAUSED BY THE DISPUTE WITH KUWAIT DENIED OPEC THE QUICK SETTLEMENT IT HAD SOUGHT AS EVIDENCE THAT IT WAS RETURNING TO PRODUCTION DISCIPLINE TO BALANCE OIL SUPPLY AND DEMAND AND PROP UP PRICES THERE WAS MAJOR CONCERN AMONG THE MINISTERS THAT IF THEY DIDN'T ACT QUICKLY TO CUT PRODUCTION AS PROPOSED BY HISHAM NAZER THE SAUDI OIL MINISTER AND ALIRIO PARRA OPEC'S PRESIDENT AND VENEZUELA'S OIL MINISTER PRICES WOULD FALL AGAIN THAT CONCERN APPEARED TO HAVE BEEN BORNE OUT A SURPRISE AT THE MEETING WAS THE SUDDEN CORDIALITY BETWEEN GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER AND SAUDI ARABIA'S MR NAZER WHO ARE OFTEN CRITICAL OF EACH OTHER MR AGHAZADEH COMPLIMENTED MR NAZER ON SAUDI EFFORTS TO STRENGTHEN OIL PRICES AND TOLD HIM IRAN WOULD DO THE SAME OPEC NEEDS VERY STRONG SUPPORT BY THE BIG PRODUCERS MR AGHAZADEH SAID 9302170020 930217 REVIEW & OUTLOOK EDITORIAL TAXING TO PROSPERITY BILL CLINTON'S OVAL OFFICE SPEECH MONDAY EVENING ABOUT HIS SOONTOBERELEASED ECONOMIC PLAN WAS WHAT FOLKS IN SHOW BUSINESS CALL AN OUTOFTOWN TRYOUT ON THE EVIDENCE OF THE STOCK WATCHERS WHO RAN SCREAMING FOR THE EXITS YESTERDAY WE'D SAY THAT THE NEW CLINTON PRODUCTION TAXING OUR WAY TO PROSPERITY BOMBED IN NEW HAVEN THE DOW JONES INDUSTRIALS DOVE NEARLY 83 POINTS SETTING OFF THE BIG BOARD'S PROGRAMTRADING UPTICK RULE IN THE FIRST HOUR NASDAQ STOCKS WERE HAMMERED WITH GIANT INTEL DOWN 5 1/8 AT ONE POINT US HEALTHCARE DOWN 2 5/8 AMGEN OFF 4 AND EVEN MICROSOFT DOWN 3 1/2 DRUG STOCKS LAST SEEN GOING FOR A RIDE TO THE SWAMPS WITH MR CLINTON ON FRIDAY WERE DOOMED FROM THE OPENING BELL IN ALL THAT'S A FAIR CROSS SECTION OF AMERICA'S INDUSTRIAL FUTURE WOBBLING IN THE WAKE OF MR CLINTON'S SPEECH MONDAY AGAIN THE SPEECH WAS ONLY A DRESS REHEARSAL AND WE SUPPOSE IT'S POSSIBLE THAT BY THIS EVENING THE CLINTON WRITERS WILL COME UP WITH BETTER APPLAUSE LINES THAN THE ONES HE DELIVERED MONDAY FOR NOW THE PRESIDENT'S SOMEWHAT COQUETTISH RENDERING OF THE ANTIQUE CLASSIC PROMISES PROMISES DOESN'T QUITE CONVINCE SOMETHING ISN'T RIGHT ABOUT THE TOOJOYOUS KICKLINE THAT THE PRESIDENT DOES WITH GEORGE MITCHELL AND TOM FOLEY WE'RE IN THE MONEY WE FOUND OURSELVES DISCONCERTED BY THIS GRAND NUMBER APPEARING SO SOON AFTER MR CLINTON AND THE CHORUS OF UNMET NEEDS PERFORMING UNDER THE LIVELY BATON OF HR CLINTON HAD SOBBED THEIR WAY THROUGH BROTHER CAN YOU SPARE A DIME WE SPOKE WITH ONE OF THE SHOW'S WRITERS YESTERDAY AND HE INSISTED THAT THE PRESS NOTICES DON'T TELL THE FULL STORY THAT MR CLINTON'S LONGAWAITED DEBUT AT THE CAPITOL THEATRE TONIGHT WILL INCLUDE A STIRRING AND UTTERLY CONVINCING ARIA TITLED SPENDING REDUCTIONS SPENDING REDUCTIONS NO DOUBT THE FULLEST APPRECIATION OF AMERICAN POLITICS REQUIRES A CERTAIN SUSPENSION OF BELIEF IN THE DETAILS OF ITS PERIODIC BURLESQUES BUT IT HAS BEEN OUR OBSERVATION THAT THE PROMISE OF SPENDING REDUCTIONS IS AN INVITATION TO HOOTING AND TOMATOES WE SUSPECT THAT YESTERDAY'S STUMBLING STOCK MARKET UNDERSTOOD THAT THIS LATEST VERSION OF THE OFTPERFORMED BELTWAY CHESTNUT WOULD BE NO DIFFERENT NO MATTER HOW LILTING THE PRESIDENT'S PERFORMANCE HISTORICAL MEMORY CAN BE A STERN STANDARD AND THE CHART ACCOMPANYING THIS EDITORIAL IS HISTORY'S RECORD NOTWITHSTANDING MR CLINTON'S INSISTENT BASHING OF THE '80S SO FAR STILL ABOUT 18 MILLION NEW JOBS AHEAD OF HIS JOBCREATION RECORD THE FAMOUS BUDGET DEFICIT AT WHICH ALL THIS NEW REVENUE IS PRESUMABLY DIRECTED IS THE RESULT OF SPENDING MAINTAINED BY HIS PARTY IN CONGRESS AT BETWEEN 22 AND 24 OF GDP TAXES HAVE HOVERED AROUND AN HISTORICAL AVERAGE WE WOULD CALL IT A POLITICAL CONSENSUS OF ABOUT 19 OF GDP MR CLINTON WANTS MORE THE PRESIDENT CAN DRESS UP THIS REQUEST FOR MORE AS THE PRICE OF FUNDAMENTAL CHANGE OR A CHALLENGE OR INCREDIBLY A CONTRIBUTION BUT THE TAXPAYING ELECTORATE LIKE YESTERDAY'S FRIGHTENED STOCK MARKET HAS HEARD THIS MANY TIMES BEFORE FEW CAN FORGET THE STIRRING PERFORMANCE IN THIS ROLE BY THE FAMED NEW JERSEY TENOR JIM FLORIO NOW THE ENTIRE COUNTRY IS PRESENTED WITH A PRESIDENT WHO PROMISES TO TAX THEM INTO PROSPERITY WE'LL SEE HOW LONG IT PLAYS 9302170019 930217 BUSINESS BRIEF DEN NORSKE BANK AS NORWEGIAN BANK SAYS LOSS NARROWED GREATLY IN 1992 NORWAY'S LARGEST BANKING GROUP DEN NORSKE BANK AS SAID ITS NET LOSS NARROWED TO 307 BILLION KRONER 437 MILLION IN 1992 FROM 601 BILLION KRONER IN 1991 THE DNB GROUP IN WHICH THE NORWEGIAN GOVERNMENT HOLDS A 70 STAKE AFTER EXTENSIVE RESCUE OPERATIONS SAID OPERATING PROFIT BEFORE LOAN LOSSES ROSE TO 260 BILLION KRONER IN 1992 FROM 157 BILLION KRONER A YEAR EARLIER NONPERFORMING LOANS GREW TO 1135 BILLION KRONER IN 1992 FROM 1017 BILLION KRONER A YEAR EARLIER ALTHOUGH LOANLOSS PROVISIONS ARE ON THE WAY DOWN THE ROAD TO RECOVERY IS STILL LONG FOR THE NORWEGIAN CORPORATE SECTOR FINN HVISTENDAHL CHIEF EXECUTIVE OFFICER SAID 9302170018 930217 SYNETIC COMPLETES ACQUISITION FAIR LAWN NJ SYNETIC INC COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF RELIANCE HEALTH SERVICES FOR SYNETIC STOCK CURRENTLY VALUED AT 148 MILLION PLUS POSSIBLE FUTURE PAYMENTS OF SYNETIC STOCK BASED ON FINANCIAL PERFORMANCE 9302170017 930217 CLINTON CONSIDERS PROPOSALS TO REDUCE REGULATORY BARRIERS TO BANK LENDING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING THREE CHANGES AIMED AT REDUCING REGULATORY BARRIERS TO BANK LENDING PARTICULARLY TO SMALL BUSINESSES ONE PROPOSAL WOULD ENCOURAGE BANKS TO MAKE SOCALLED CHARACTER LOANS TO FINANCE NEW BUSINESSES OR ALLOW OTHERS TO EXPAND A SECOND POSSIBLE CHANGE IN SUPERVISORY PROCEDURES WOULD ESTABLISH A NEW PROCESS FOR APPEALING UNFAVORABLE DECISIONS MADE BY BANK EXAMINERS THE ADMINISTRATION IS ALSO CONSIDERING ISSUING NEW STANDARDS SPECIFYING THE CIRCUMSTANCES UNDER WHICH REGULATORS COULD SUE OR PENALIZE BANK OFFICERS AND DIRECTORS FOR NEGLIGENCE THESE PROPOSALS HAVE BEEN DRAFTED IN THE TREASURY DEPARTMENT BUT IT'S UNCLEAR WHETHER PRESIDENT CLINTON WILL INCLUDE THE MEASURES WHEN HE ANNOUNCES HIS ECONOMIC PLAN TODAY THE CHANGES WHICH COULD BE MADE BY REGULATORY AGENCIES WITHOUT AMENDING BANKING LAWS REPRESENT THE ADMINISTRATION'S INITIAL EFFORTS TO FIND WAYS TO BOOST BANK LENDING WITHOUT WEAKENING SAFETY AND SOUNDNESS PROVISIONS PRESIDENT CLINTON HAS STRESSED THE NEED TO SPUR SMALL BUSINESS LENDING AS A WAY TO CREATE JOBS AND ADMINISTRATION OFFICIALS HAVE SIGNALED THEIR INTEREST IN BANKING MATTERS IN OTHER WAYS AS WELL LAST WEEK FOR INSTANCE WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY DISCUSSED A RANGE OF BANKING MATTERS WHILE DINING WITH FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN AND VICE CHAIRMAN DAVID MULLINS BANKERS COMPLAIN THAT REGULATORS AND CONGRESS OVERREACTED TO THE SAVINGSANDLOAN CRISIS BY IMPOSING RIGID REGULATIONS AND EXAMINATION PROCEDURES ON BANKS AS A RESULT BANKERS CONTEND THAT THEY ARE RELUCTANT TO MAKE LOANS THAT REGULATORS MAY CHALLENGE AS RISKY A MOVE THAT HAS CHOKED OFF CREDIT TO NEW BUSINESSES BANKERS HAVE APPEALED FOR REGULATORY RELIEF AND TREASURY SECRETARY LLOYD BENTSEN HAS PROMISED THAT CONSIDERATION OF SUCH MEASURES WILL BE A HIGH PRIORITY BUT THE POLITICS OF BANK REGULATION ARE TRICKY THE CHAIRMEN OF THE HOUSE AND SENATE BANKING COMMITTEES HAVE QUESTIONED THE WISDOM OF GRANTING REGULATORY RELIEF JUST YESTERDAY CHARLES BOWSHER THE COMPTROLLER GENERAL TOLD THE HOUSE BANKING COMMITTEE THAT THE FOUR FEDERAL BANK REGULATORS AREN'T DOING A THOROUGH JOB IN EXAMINING BANKS AND THRIFTS THE FOUR AGENCIES ARE THE FED THE FEDERAL DEPOSIT INSURANCE CORP THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION MR BOWSHER RELEASED REPORTS BY THE GENERAL ACCOUNTING OFFICE THE AUDIT ARM OF CONGRESS THAT CONCLUDED EXAMINERS DON'T ADEQUATELY ASSESS THE INTERNAL CONTROLS BANKS FOLLOW TO STAY OUT OF TROUBLE NOR DO THE REGULATORS PAY ENOUGH ATTENTION TO LOAN QUALITY OR TO WHETHER LOANLOSS RESERVES ARE SUFFICIENT SEVERAL AGENCIES HAVE CHALLENGED THE FAIRNESS AND ACCURACY OF THE GAO'S CHARGES THE THREE CHANGES THE ADMINISTRATION IS CONSIDERING HAVE THE SUPPORT OF THE BANKING INDUSTRY IN FACT THE INDUSTRY PROPOSED THEM TO MR CLINTON IN DECEMBER EVEN BEFORE HE ASSUMED THE PRESIDENCY AS PART OF A MUCH BROADER CALL FOR REGULATORY RELIEF IN PARTICULAR BANKERS ARE CONCERNED THAT BANKING LAWS GIVE REGULATORS THE AUTHORITY TO IMPOSE CIVIL MONETARY PENALTIES OF BETWEEN 5000 AND 1 MILLION A DAY AGAINST INSTITUTIONS THEIR OFFICERS DIRECTORS CONTROLLING SHAREHOLDERS LAWYERS AND ACCOUNTANTS FOUND IN VIOLATION OF BANKING LAWS BANKERS ARGUE THAT THE THREAT OF SUCH PENALTIES HAS MADE BANKERS FEARFUL OF TAKING RISKS THAT EXAMINERS MAY LATER CALL A THREAT TO THE INSTITUTION'S SAFETY OR SOUNDNESS ALTHOUGH THE DETAILS OF THE PROPOSALS AREN'T CLEAR THE THRUST OF THE THREE CHANGES INCLUDES CHARACTER LENDING THE ADMINISTRATION WANTS TO ENCOURAGE REGULATORS TO RECOGNIZE THE ROLE OF JUDGMENT IN MAKING BANK LOANS FOR EXAMPLE IT WANTS REGULATORS TO ALLOW BANKERS TO MAKE LOANS PARTICULARLY TO NEW BUSINESSES THAT REPRESENT A REASONABLE RISK ALTHOUGH THE CREDITS MAY NOT FIT SPECIFIC REGULATORY RATIOS AND FORMULAS EVEN FED CHAIRMAN GREENSPAN HAS COMPLAINED THAT THE MOST RECENT THRUST OF LEGISLATION AND THE ASSOCIATED SUPERVISION HAS ELIMINATED THE SOCALLED CHARACTER LOANS THAT HAD SO DOMINATED LENDING PRACTICES OF A LARGE NUMBER OF BANKS TO INDIVIDUALS AND SMALL BUSINESS APPEALS PROCESS BANKERS HAVE ASKED FOR AN APPEALS CHANNEL THAT WOULD ALLOW THEM TO SEEK HIGHLEVEL OBJECTIVE REVIEW WITHOUT RETRIBUTION OF EXAMINATION DECISIONS THEY CONSIDER UNFAIR ALTHOUGH REGULATORS HAVE MOVED TO MAKE APPEALS EASIER THEY HAVEN'T GONE FAR ENOUGH TO PLEASE BANKERS GUIDANCE FOR BANK OFFICERS AND DIRECTORS THE ADMINISTRATION IS TRYING TO COME UP WITH GUIDELINES THAT WOULD GIVE BANK OFFICERS AND DIRECTORS A ROADMAP TO HELP THEM AVOID CRITICISM PENALTIES AND LAWSUITS BY REGULATORS ALTHOUGH THE PROPOSALS MAY APPEAR TO BE TECHNICAL CHANGES THEY COULD ALTER THE TONE OF THE BANKING REGULATIONS AND HELP TO EASE THE UNCERTAINTIES THAT BANKERS CONTEND MAKE THEM RELUCTANT TO LEND BUT IT MAY BE DIFFICULT TO ACTUALLY MAKE THE CHANGES THE BUSH ADMINISTRATION TRIED MANY OF THE SAME MEAURES WITHOUT CLEAR SUCCESS IN ADDITION THE CLINTON ADMINISTRATION DOESN'T HAVE ITS BANKING TEAM IN PLACE FRANK NEWMAN FORMER VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF BANKAMERICA CORP IS TAPPED TO BE TREASURY DEPARTMENT UNDERSECRETARY FOR FINANCE AND EUGENE LUDWIG A WASHINGTON LAWYER IS EXPECTED TO BE NAMED COMPTROLLER OF THE CURRENCY BUT NEITHER HAS BEEN FORMALLY NOMINATED YET THEY ARE NOW WORKING AS CONSULTANTS FOR THE ADMINISTRATION MOREOVER PRESIDENT CLINTON HASN'T NAMED OTHER TREASURY OFFICIALS WHO WILL WORK ON BANKING ISSUES OR NOMINATED ANYONE TO SERVE AS CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP 9302170016 930217 TUESDAY'S MARKETS STOCKS SLUMP AS CLINTON'S PLAN SPARKS FEARS BY WALL STREET JOURNAL REPORTERS DOUGLAS R SEASE ANITA RAGHAVAN AND MICHAEL R SESIT FRIGHTENED BY THE PROSPECT OF HIGHER TAXES THAT COULD CHOKE OFF THE BUDDING ECONOMIC RECOVERY INVESTORS SENT THE STOCK MARKET TUMBLING IN A BROADBASED SELLOFF STOCK PRICES PLUNGED FROM THE OPENING BELL AS INVESTORS GAVE PRESIDENT CLINTON'S ECONOMIC PLANS AN INITIAL AND STRONG VOTE OF NO CONFIDENCE ALTHOUGH STOCK PRICES RECOVERED SLIGHTLY FROM THEIR LOWS OF THE DAY THE DOW JONES INDUSTRIAL AVERAGE ENDED DOWN 8294 POINTS OR 244 TO 330949 IT WAS THE BIGGEST ONEDAY POINT DECLINE SINCE NOV 15 1991 STANDARD & POOR'S 500STOCK INDEX FELL 1067 OR 240 TO 43391 SMALL STOCKS FARED EVEN WORSE THE NASDAQ COMPOSITE INDEX WHICH HAS SURGED IN RECENT MONTHS SURRENDERED 2515 POINTS OR 364 TO 66539 ITS WORST DECLINE SINCE OCT 26 1987 BOND INVESTORS STAYED COOL WITH THE TREASURY'S BENCHMARK 30YEAR BOND LOSING LESS THAN A QUARTER OF A POINT OR LESS THAN 250 FOR EACH 1000 FACE AMOUNT SHORTERTERM TREASURY ISSUES ROSE MODESTLY BUT THE DOLLAR REACTING TO THE THREAT OF SLOWER US ECONOMIC GROWTH UNDER THE CLINTON ADMINISTRATION'S TAX PLAN PLUNGED AGAINST EUROPEAN CURRENCIES AND SANK AGAINST THE YEN THE MARKETS ARE RECOGNIZING THAT TAXES ARE GOING TO BE MUCH HIGHER THAN THEY EXPECTED AND SPENDING CUTS ARE GOING TO BE MUCH LOWER SAID ARTHUR MICHELETTI CHIEF MARKET STRATEGIST AT BAILARD BIEHL & KAISER A MONEYMANAGEMENT FIRM INVESTORS ARE GIVING CLINTON'S PLAN A PRELIMINARY THUMBS DOWN NEVERTHELESS TRADERS SAID THAT THE SELLING WHILE HEAVY HAD NONE OF THE EARMARKS OF A PANICKY RETREAT INDEED SEVERAL SUGGESTED THAT STOCK PRICES ARE LIKELY TO STABILIZE AND PERHAPS EVEN RECOVER MUCH OF THE LOST GROUND BEFORE THE END OF THE WEEK YESTERDAY'S SHARP RETREAT SPARED FEW IF ANY SECTORS OF THE STOCK MARKET BUT THE SELLING WAS HEAVIEST IN STOCKS OF COMPANIES WHOSE FORTUNES RISE AND FALL WITH THE ECONOMIC CYCLE AUTOMOBILE STOCKS WERE HIT ESPECIALLY HARD GENERAL MOTORS TUMBLED 2 TO 38 5/8 CHRYSLER SKIDDED 3 3/8 TO 36 1/2 AND FORD SLID 1 3/4 TO 47 1/2 ANTICIPATION THAT PRESIDENT CLINTON WILL PROPOSE A BROADBASED ENERGY TAX HAMMERED TRANSPORTATION ISSUES TOO WITH THE DOW JONES TRANSPORTATION INDEX PLUMMETING 6346 OR 402 TO 151548 AMONG THE 20 STOCKS IN THAT INDEX UAL PARENT OF UNITED AIRLINES FELL 6 1/2 TO 119 1/2 AMR PARENT OF AMERICAN AIRLINES TUMBLED 2 3/8 TO 60 5/8 DELTA AIR LINES LOST 2 3/8 TO 49 CSX WAS OFF 2 TO 73 7/8 AND CONRAIL PLUNGED 3 3/8 TO 53 3/8 WHILE ANALYSTS DEBATED HOW FAST SUCH GROUPS WOULD RECOVER THEY VIRTUALLY WROTE OFF THE HEALTHCARE INDUSTRY WHICH THE CLINTON ADMINISTRATION HAS TARGETED FOR BIG GOVERNMENTSPENDING CUTS THROUGH LIMITS ON PAYMENTS TO DOCTORS AND POSSIBLE CONTROLS ON DRUG PRICES PFIZER PLUNGED 4 1/8 TO 60 1/8 MERCK WAS OFF 2 1/2 TO 37 7/8 SCHERINGPLOUGH LOST 3 3/4 TO 59 3/8 AND BRISTOLMYERS SQUIBB FELL 2 3/8 TO 56 5/8 STOCKS OF SOME MAJOR HEALTHCARE PROVIDERS AND INSURANCE COMPANIES WERE CAUGHT IN THE SELLING FRENZY US HEALTHCARE SLID 2 5/8 TO 45 3/4 CAREMARK INTERNATIONAL DROPPED 1 TO 15 3/4 AND MANOR CARE INCHED DOWN 7/8 TO 22 3/8 AMERICAN INTERNATIONAL GROUP TUMBLED 6 TO 117 TORCHMARK LOST 3 5/8 TO 60 3/8 AND ST PAUL COS SLIPPED 2 1/2 TO 78 1/2 THE FIRST LADY HILLARY RODHAM CLINTON IS HEADING A COMMISSION THAT WILL DEVISE A PLAN TO CONTROL HEALTHCARE COSTS TO BE RELEASED THIS SPRING NOBODY IS GOING TO HAVE THE COURAGE TO BUY A HEALTHCARE STOCK UNTIL THEY KNOW WHAT THAT PLAN IS GOING TO SAY SAID PETER CANELO CHIEF MARKET STTEGIST AT COUNTY NATWEST MR CANELO SAID YESTERDAY'S DECLINE IN SMALL STOCKS COUPLED WITH EARLIER RETREATS BY THE NASDAQ COMPOSITE FROM ITS ALLTIME HIGH SIGNALS THAT SMALL STOCKS ARE IN A FULLBLOWN RETREAT IT'S NOT A BEAR MARKET BUT IT'S A CORRECTION THAT COULD CARRY US DOWN AS MUCH AS 13 HE SAID WHILE OPINION WAS MORE MIXED ABOUT THE NEARTERM FUTURE OF LARGE STOCKS ANALYSTS AGREED THAT A RETREAT OF 5 OR MORE IN THE DOW INDUSTRIALS OR THE S&P 500 WILL TEST THE METTLE OF THE THOUSANDS OF INDIVIDUAL INVESTORS WHO DISAPPOINTED WITH THE LOW RETURNS AVAILABLE IN MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT HAVE BEEN POURING MONEY INTO STOCK MUTUAL FUNDS AT A RECORD PACE DURING THE PAST YEAR MICHAEL HINES SENIOR VICE PRESIDENT MARKETING AT FIDELITY INVESTMENTS THE BIG MUTUALFUND FIRM SAID REDEMPTIONS FROM FIDELITY'S AGGRESSIVE GROWTHSTOCK FUNDS HAD BEEN PICKING UP IN RECENT DAYS AND ACCELERATED YESTERDAY BUT HE ADDED THAT MANY LONGTERM INVESTORS TOOK ADVANTAGE OF YESTERDAY'S SKID TO MOVE MONEY INTO MORE CONSERVATIVE GROWTHANDINCOME FUNDS WHICH INCLUDE STOCKS AS WELL AS BONDS MANY OF THE GROWTHANDINCOME FUNDS ARE SEEING MONEY COME IN AS PEOPLE SEE THE PULLBACK AS A BUYING OPPORTUNITY HE SAID JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ IS LOOKING TO FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TO TAKE SOME OF THE PAIN OUT OF MR CLINTON'S TAXINCREASE PROPOSALS BY RAISING THE POSSIBILITY THAT THE FED COULD CUT INTEREST RATES FURTHER HINTS OF LOWER RATES COULD COME AS EARLY AS TOMORROW WHEN MR GREENSPAN IS SCHEDULED TO TESTIFY BEFORE CONGRESS SAID MR MCALINDEN OTHER MARKET EXPERTS ENCOURAGED INVESTORS TO TAKE ADVANTAGE OF THE PRICE PLUNGE TO ADD TO THEIR STOCK PORTFOLIOS THE INDICATORS I LOOK AT ARE VERY BULLISH DECLARED ELAINE GARZARELLI SHEARSON LEHMAN BROTHERS STOCK STRATEGIST SHE SAID THAT PRESIDENT CLINTON'S PROPOSALS NOTWITHSTANDING THE ECONOMY IS EXPANDING AND INTEREST RATES ARE LOW BOTH OF WHICH ARE POSITIVE FOR STOCKS WHILE MANY ANALYSTS PANNED MR CLINTON'S PLANS THEY ALSO SUGGESTED THAT STOCKS REMAIN GOOD BUYS BECAUSE CONGRESS IS VERY UNLIKELY TO GIVE THE PRESIDENT THE SHARPLY HIGHER TAXES HE WANTS ESPECIALLY IN LIGHT OF THE STOCK MARKET'S STRONG NEGATIVE REACTION I HOPE CLINTON ISN'T ARROGANT ABOUT WHAT THE MARKET IS SAYING SAID BYRON WIEN A STRATEGIST AT MORGAN STANLEY SURE WE DIDN'T ELECT HIM TO KEEP THE SEAT WARM BUT WE ALSO DIDN'T ELECT HIM TO ABORT A STRUGGLING RECOVERY MR WIEN SAID HE EXPECTS CONGRESS TO TAKE MATTERS INTO ITS OWN HANDS MODIFYING THE ADMINISTRATION'S PROPOSALS TO MAKE THEM MORE ACCEPTABLE TO CONSUMERS AND INVESTORS BUT UNTIL THAT HAPPENS HE SAID CONSUMERS ARE LIKELY TO HOLD BACK ON THEIR SPENDING PLANS THIS IS GOING TO KILL CONSUMER CONFIDENCE HE SAID UNTIL CONSUMERS KNOW HOW THEY'RE GOING TO BE AFFECTED THEY ARE GOING TO HOLD BACK ON SPENDING MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID STOCK AND BOND INVESTORS MAY BE TRAPPED IN A WAY THE MARKETS ARE IN A NOWIN SITUATION HE SAID IF CLINTON'S PROPOSALS GO THROUGH IT'S GOING TO RESULT IN A PRONOUNCED FISCAL DRAG ON THE ECONOMY IF HIS PROPOSALS DON'T GO THROUGH THEN WE'RE FACED WITH A SPIRALING DEFICIT AND NO ONE ADDRESSING THE PROBLEM IN ANY EVENT FINANCIAL MARKETS ARE LIKELY TO BE ROILED FOR MONTHS TO COME RESISTANCE TO HIGHER TAXES FROM A NUMBER OF SOURCES IS LIKELY TO STALL THE NECESSARY TAX LEGISLATION IN CONGRESS AND THE RESULTING DEBATES AND TRADE OFFS AMONG COMPETING INTEREST GROUPS WILL LEAVE INVESTORS UNCERTAIN ABOUT THE FINAL RESULTS ANALYSTS SAY WE'RE IN FOR A LONG HOT SUMMER HERE PREDICTED MR CANELO IT'S GOING TO BE LABOR DAY BEFORE WE SEE THE END OF THIS AND THE MARKETS HATE THAT KIND OF PROLONGED UNCERTAINTY SOME ANALYSTS ADVISED CLIENTS YESTERDAY TO PARE BACK THEIR STOCK HOLDINGS GOLDMAN SACHS RECOMMENDED THAT CLIENTS CUT THEIR STOCK HOLDINGS TO 55 OF THEIR PORTFOLIO FROM 70 AND TO BOOST BOND HOLDINGS TO 40 FROM 25 WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 076 TO 9355 THE EFFECTS OF PRESIDENT CLINTON'S SPEECH WERE FIRST FELT IN THE CURRENCY MARKETS THE DOLLAR SELLOFF BEGAN IN FAR EASTERN MARKETS RIGHT AFTER MR CLINTON FINISHED SPEAKING AND CONTINUED INTO EUROPEAN AND US TRADING BY LATE YESTERDAY IN NEW YORK THE DOLLAR WAS OFF 18 AGAINST THE MARK 23 AGAINST THE SWISS FRANC AND 2 AGAINST THE BRITISH POUND THE PRESIDENT'S SPEECH WAS A LOT OF DOOM AND GLOOM SAID ROBERT K RYAN A VICE PRESIDENT AT BANK OF NEW YORK WHENEVER YOU RAISE TAXES IT DEFINITELY SLOWS THE ECONOMY DOWN AND WITH A SOFTENING ECONOMY YOU HAVE SOFTER US INTEREST RATES WHICH WIDENS THE YIELD DIFFERENTIAL IN FAVOR OF MARKS IN MAJOR MARKET ACTION STOCK PRICES PLUNGED IN HEAVY TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE TOTALED 3254 MILLION SHARES WITH 1701 ISSUES DECLINING AND 378 RISING BOND PRICES WERE MIXED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE TO 714 YIELDS ON SHORTERTERM ISSUES SLIPPED SLIGHTLY THE DOLLAR TUMBLED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16285 MARKS AND 11993 YEN COMPARED WITH 16587 MARKS AND 12095 YEN MONDAY IN LONDON 9302170015 930217 SHAM CUTS ON SPENDING BY JAMES C MILLER III TONIGHT PRESIDENT CLINTON UNVEILS MORE ABOUT HIS PLAN TO STIMULATE THE ECONOMY AND REDUCE THE DEFICIT JUDGING FROM THE DETAILS LEAKED THUS FAR THE MARKET'S 83POINT DROP YESTERDAY AND MR CLINTON'S ADDRESS FROM THE OVAL OFFICE ON MONDAY IT WILL BE A HARD SELL NOT ONLY BECAUSE OF THE TAX CONTRIBUTION BUT BECAUSE THERE IS SO LITTLE DISCIPLINE ON THE SPENDING SIDE OF THE BUDGET FIRST A WORD ABOUT THE BUDGET NEWSPEAK IN WASHINGTON THAT MASQUERADES AS TRUTH WHEN THE BELTWAY CROWD TALKS ABOUT CUTTING SPENDING THEY DON'T MEAN SPENDING LESS NEXT YEAR THAN WILL BE SPENT THIS YEAR THEY MEAN SPENDING LESS THAN WOULD HAVE BEEN SPENT IF THE BUDGET WERE LEFT ON AUTOMATIC PILOT THE OFFICE OF MANAGEMENT AND BUDGET OR OMB ESTIMATES THAT SPENDING WILL RISE 48 BILLION FROM FISCAL YEAR 1993 TO 1994 THE CONGRESSIONAL BUDGET OFFICE OR CBO ESTIMATES 54 BILLION THE SAME HOLDS TRUE FOR THE TAX SIDE OMB ESTIMATES THAT THE TAX CODE LEFT ALONE WILL PRODUCE 82 BILLION MORE IN 1994 THAN IN 1993 CBO ESTIMATES 72 BILLION WITH THIS BASELINE AS HIS STARTING POINT MR CLINTON RECOMMENDS A 31 BILLION INCREASE IN SPENDING FOR 1993 OF WHICH 16 BILLION WILL BE FOR JOB CREATION WITH THE REST FOR PUBLIC INFRASTRUCTURE NEW TECHNOLOGIES IMMUNIZATIONS FOR CHILDREN AND GRANTS TO CITIES AND TOWNS HE ALSO RECOMMENDS CERTAIN SPENDING REDUCTIONS AN ADDITIONAL 8 BILLION FROM DEFENSE PLUS UNSPECIFIED SAVINGS FROM TRIMMING ADMINISTRATIVE COSTS REDUCING THE FEDERAL WORK FORCE BY 100000 POSITIONS AND FROM OTHER SOURCES REDUCTIONS THAT MR CLINTON CHARACTERIZES AS REAL DEFENSIBLE AND MEASURABLE NOT IMAGINARY JUST HOW MUCH SPENDING IS TO BE CUT IS A MATTER OF INTENSE SPECULATION IT APPEARS HOWEVER THAT THE AMOUNT WILL FALL CONSIDERABLY SHORT OF THE PREVIOUSLY STATED GOAL OF 2 IN SPENDING CUTS FOR EVERY 1 IN TAX INCREASES A FORMULA THAT TEXAS REP CHARLES STENHOLM LEADER OF THE 50MEMBER CONSERVATIVE DEMOCRATIC FORUM SAYS IS ESSENTIAL IF THE PLAN IS TO PASS MUSTER IN THE HOUSE EVEN THE LOWER RATIO MIGHT BE TOLERABLE PROVIDED THERE WAS SPENDING DISCIPLINE UNFORTUNATELY THERE IS LITTLE REASON FOR CONFIDENCE ON THIS SCORE SOME OF THE PRESIDENT'S CLAIMED SAVINGS ARE NOT REALLY SAVINGS AT ALL AN EXAMPLE IS THE PLAN TO INCREASE MEDICARE PREMIUMS FOR THE WEALTHY ALTHOUGH BY CONVENTION THESE REVENUES SHOW UP IN THE BUDGET AS NEGATIVE OUTLAYS AND SERVE TO REDUCE THE MEASURED COST OF THE MEDICARE PROGRAM IN REALITY THE PRESIDENT'S PLAN AMOUNTS TO A REVENUE INCREASE AND DOES NOTHING TO REDUCE THE SIZE OF GOVERNMENT THE SAME IS TRUE OF HIS APPROACH TO SOCIAL SECURITY INCREASING THE TAX TO 85 FROM 50 ON THAT PORTION OF SOCIAL SECURITY ABOVE 25000 PER YEAR FOR A SINGLE ADULT AND 32000 FOR A MARRIED COUPLE CONSTITUTES A STRAIGHTFORWARD TAX INCREASE HAVING NO EFFECT ON SOCIAL SECURITY OUTLAYS MOREOVER TO KEEP THE FISCAL AGGREGATES DOWN THE CLINTON ADMINISTRATION IS LOOKING INCREASINGLY TO REGULATION TO ACCOMPLISH ITS POLICY OBJECTIVES TO RESTRAIN THE COSTS OF IMMUNIZATIONS THE PRESIDENT BEATS UP ON VACCINE MANUFACTURERS CHARACTERIZING THEIR PROFITS AS UNCONSCIONABLE AND DIRECTING HIS HEALTH SECRETARY TO NEGOTIATE WITH THEM TO ENSURE THAT THEIR PRICES ARE REASONABLE TO REIN IN THE COST OF MEDICARE THE PRESIDENT WANTS TO APPLY PRICE CONTROLS TO DOCTORS HOSPITALS AND INSURANCE COMPANIES OF COURSE THE REAL COSTS OF GOVERNMENT PROGRAMS ARE CHANGED NOT ONE IOTA BY SUCH MEASURES THE ONLY THING THAT CHANGES IS WHO FOOTS THE BILL AND WHERE WILL IT STOP WILL WE NEXT HEAR THAT MR CLINTON WANTS TO FORCE PENSION FUNDS TO INVEST IN PUBLIC INFRASTRUCTURE THE OPENENDEDNESS OF SUCH OPPORTUNITIES TO SHIFT COSTS OFFBUDGET MAKES IT IMPERATIVE THAT CONGRESS INSTITUTE A REGULATORY BUDGET WHAT ABOUT THE SPENDING BEHAVIOR OF CONGRESS THERE IS ABUNDANT THOUGH CONTROVERSIAL EVIDENCE THAT WHENEVER THERE IS AN INCREASE IN GOVERNMENT REVENUE CONGRESS SIMPLY SPENDS THE MONEY THUS NO MATTER WHAT THE RHETORIC THE CHANCES ARE THAT ALL THE REVENUE INCREASES FROM MR CLINTON'S ASSORTMENT OF NEW TAXES WILL BE TRANSLATED INTO SPENDING INCREASES NOT DEFICIT REDUCTIONS THE STRATEGY THAT IS DEVELOPING THAT OF NEGOTIATING A MEGADEAL WITH CONGRESS ALL BUT ENSURES THAT SPENDING WILL GROW BY MORE THAN THE INCREASE IN REVENUES BEAR IN MIND THAT BOTH OMB AND CBO PROJECT THAT THE BASELINE DEFICIT WILL FALL IN 1994 OMB SAYS BY 35 BILLION CBO SAYS BY 19 BILLION BUT WHAT WILL HAPPEN TO THE ACTUAL DEFICIT HISTORY IS PARTICULARLY INSTRUCTIVE ON THIS SCORE FROM 1980 THROUGH 1993 SIX BUDGETS WERE THE RESULT OF BUDGET SUMMITS AND SEVEN WERE NOT IN THE AGREEMENT YEARS THE DEFICIT INCREASED AN AVERAGE OF 26 BILLION IGNORING THE YEARS COVERED BY THE INFAMOUS 1990 BUDGET ACCORD YIELDS A SIMILAR RESULT 30 BILLION HOWEVER IN THE NONAGREEMENT YEARS THE DEFICIT ACTUALLY DECREASED AN AVERAGE OF 17 BILLION THUS ESTABLISHING PARAMETERS FOR THE BUDGET AND THREATENING TO VETO ANY BILL OUTSIDE THOSE PARAMETERS WOULD LIKELY REDUCE THE DEFICIT WHEREAS SITTING DOWN AND CUTTING A DEAL WITH CONGRESS WOULD LIKELY INCREASE THE DEFICIT UNFORTUNATELY EVERY YEAR OR TWO OUR ELECTED OFFICIALS DO A MEMORY DUMP ON RECENT HISTORY AND CALL FOR SUMMIT NEGOTIATIONS TO REDUCE THE DEFICIT THE LAST TIME THAT HAPPENED 1990 THE DEFICITREDUCTION GOAL WAS 496 BILLION MR CLINTON'S GOAL IS 500 BILLION AS RONALD REAGAN WOULD SAY THERE THEY GO AGAIN MOST IMPORTANT THE LACK OF SPENDING DISCIPLINE IS EVIDENT BY WHAT MR CLINTON HAS NOT PROPOSED OUR PRESENT INSTITUTIONS IMPART A BIAS TOWARD INCREASED SPENDING AND INCREASED DEFICITS THE WAY OUT OF THE SPIRAL IS TO ADOPT RULES THAT MEET THIS BIAS HEADON THE MOST IMPORTANT SUCH CHANGE WOULD BE A BALANCED BUDGET AMENDMENT REQUIRING A SUPERMAJORITY TO INCREASE SPENDING NOMINALLY IN REAL TERMS OR EVEN AS A PROPORTION OF GROSS NATIONAL PRODUCT YET IN HIS TOWN MEETING LAST WEEK MR CLINTON SAID HE COULDN'T SUPPORT THE IDEA WHAT ABOUT OTHER RULES A LINEITEM VETO WOULD BE JUST GREAT BUT MR CLINTON BACKED OFF WHEN THE CONGRESSIONAL LEADERSHIP OBJECTED AND WHAT ABOUT FIRM CAPS ON ENTITLEMENT PROGRAMS OR SUBJECTING THEM TO REAUTHORIZATION ZEROBASED BUDGETING ON A REGULAR TIMETABLE AND WHAT ABOUT AUTOMATIC SEQUESTERS OF SPENDING AUTHORITY TIED TO DEFICIT TARGETS A LA GRAMMRUDMANHOLLINGS IF MR CLINTON IS INDEED SERIOUS ABOUT GETTING THE BUDGET UNDER CONTROL HE SHOULD SPEND HIS POLITICAL CAPITAL ON INSTITUTIONAL REFORMS THAT PROVIDE INCENTIVES FOR CONGRESS AND THE EXECUTIVE TO CHOOSE FISCAL RESPONSIBILITY OVER FISCAL PROFLIGACY THERE ARE REASONS TO BE DISAPPOINTED WITH MR CLINTON'S PACKAGE NOT THE LEAST OF WHICH IS THAT RATHER THAN BEING A STIMULUS FOR THE ECONOMY IT MAY ACTUALLY SLOW DOWN THE RECOVERY BUT MOST DISAPPOINTING OF ALL IS THAT MR CLINTON FAILS TO GRASP THE SALIENT FEATURE OF THE PRESENT BUDGET CRISIS IT'S NOT A FAILURE OF ELECTED OFFICIALS TO COMPROMISE AN UNWILLINGNESS OF THE PUBLIC TO GO ALONG WITH SHARED SACRIFICE OR EVEN A GENERAL LACK OF PATRIOTISM IT'S A BUDGET PROCESS THAT UNDERMINES SPENDING DISCIPLINE MR MILLER IS CHAIRMAN OF CITIZENS FOR A SOUND ECONOMY AND A FELLOW AT GEORGE MASON UNIVERSITY'S CENTER FOR THE STUDY OF PUBLIC CHOICE SEE RELATED STORY MAKE MARKET FEAR 1990 REPEAT WSJ FEB 17 1993 9302170014 930217 ARKANSAS CLEARS BILL TO RAISE DEPOSIT CAP FOR BANK COMPANIES LITTLE ROCK ARK THE ARKANSAS STATE LEGISLATURE APPROVED A BILL THAT WILL RAISE THE CAP ON DEPOSITS CONTROLLED BY A BANK HOLDING COMPANY TO 25 OF THE TOTAL DEPOSITS IN THE STATE FROM 15 THE BILL WHICH GOV JIM GUY TUCKER IS EXPECTED TO SIGN WAS PUSHED PRIMARILY BY THE STATE'S LARGEST BANK HOLDING COMPANIES WORTHEN BANKING CORP AND FIRST COMMERCIAL CORP BOTH BASED IN LITTLE ROCK THE ACQUISITIONMINDED BANKING COMPANIES WERE BUCKING AGAINST THE OLD CAP WHICH THEY CONTENDED WOULD STIFLE THEIR GROWTH AND LEAVE THEM UNABLE TO COMPETE WITH LARGE OUTOFSTATE BANKS BOTH THE ARKANSAS BANKERS ASSOCIATION AND THE INDEPENDENT BANKERS ASSOCIATION OF ARKANSAS OPPOSED THE BILL AT 25 OF TOTAL DEPOSITS ARKANSAS'S CEILING ON DEPOSITS WILL BE THE HIGHEST AMONG THE 10 STATES IN THE NATION THAT HAVE CAPS SAID THE BILL'S SPONSOR LU HARDEN A DEMOCRAT FROM RUSSELLVILLE 9302170013 930217 POLITICS & POLICY PRESIDENT'S TEMPER UNSETTLES STAFFERS UNUSED TO HIS WAYS BUT WHILE BLOWUPS MAY BE THE NORM AIDES SAY THEY PASS LIKE A SUMMER STORM BY JEFFERY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S TEMPER SPORADICALLY FELT BY AIDES PRIVATELY SINCE HIS INAUGURATION FLASHED OUTSIDE THE WHITE HOUSE YESTERDAY DURING AN EVENT STAGED TO PROMOTE HIS ECONOMICSTIMULUS PACKAGE PRESIDENT CLINTON SNAPPED AT AIDES WHO HAD STOPPED TWO LOCAL POLITICIANS FROM JOINING HIM BEFORE THE CAMERAS LISTEN GODDAMMIT YOU CAN'T DO THAT MR CLINTON SAID DURING A DESIGNEDFORTELEVISION MEETING WITH CONSTRUCTION WORKERS YOU CAN'T BRING ME OUT HERE WITH THE MAYOR AND THE CONGRESSMAN AND PUSH THEM BACK THE OUTBURST WASN'T THE FIRST DISPLAY OF PRESIDENTIAL DISPLEASURE AT AIDES AND PEOPLE CLOSE TO MR CLINTON SAY IT CERTAINLY WON'T BE THE LAST WHILE THE PRESIDENT LIKES TO SHOW THE PUBLIC HIS EVERUPBEAT EVENHUGGABLE SIDE PEOPLE WHO KNOW AND WORK CLOSELY WITH HIM ALSO HAVE BECOME ACCUSTOMED TO OCCASIONAL EXPLOSIONS OF TEMPER SINCE HIS INAUGURATION DURING MR CLINTON'S DIFFICULT FIRST WEEKS IN OFFICE OVAL OFFICE BLOWUPS HAVE BECOME A NORM A FACT THAT HAS UNSETTLED MANY STAFFERS WHO HAVEN'T BEEN USED TO MR CLINTON'S DECIDEDLY OUTSPOKEN WAYS FOR EXAMPLE MR CLINTON HAS BEEN VOCALLY UNHAPPY ABOUT PRESS LEAKS HE HAS ROARED AT AIDES ABOUT UNAUTHORIZED LEAKS DETAILING OPTIONS UNDER DISCUSSION FOR HIS NEW ECONOMIC PLAN IN PARTICULAR HE UPBRAIDED HIS STAFF FOR TALKING TO REPORTERS ABOUT A PLAN ADVANCED BY ONE OF HIS FISCAL ADVISERS BUT WHICH HE NEVER TOOK SERIOUSLY TO LIMIT THE AUTOMATIC RISE IN SOCIAL SECURITY BENEFITS THE PRESIDENT WAS EVEN MORE DEMONSTRATIVE ABOUT LEAKS OVER HIS SELECTION OF KIMBA WOOD AS ATTORNEY GENERAL THE PRESS APPOINTED KIMBA WOOD NOT ME HE SHOUTED HE ALSO IS SAID TO HAVE TURNED REDFACED OVER WHAT HE CONSIDERED DECEPTION BY MS WOOD AIDES SAY MR CLINTON BELIEVED THAT SHE WASN'T COMPLETELY TRUTHFUL WHEN SHE ANSWERED THAT SHE DIDN'T HAVE BABYSITTING PROBLEMS OF THE KIND THAT SANK HIS FIRST CHOICE FOR ATTORNEY GENERAL ZOE BAIRD LIKE MANY FIRST FAMILIES NEITHER MR NOR MRS CLINTON IS UNIVERSALLY LIKED BY THE SECRET SERVICE AGENTS WHO ARE CHARGED WITH PROTECTING THEM BOTH ON OCCASION HAVE REPORTEDLY BEEN SHORT AND LOUD WITH AGENTS THE CLINTONS HAVE TENDED TO WANT MORE DISCRETION TO GO ABOUT THEIR BUSINESS IN A CROWD THAN THE SUPERCAUTIOUS SECRET SERVICE WOULD PREFER MR CLINTON IN PARTICULAR HAS SOMETIMES HAD TO INSIST ON GETTING WHAT HE WANTS AND HIS AIDES HAVE BEEN SEEN IN LONG INTENSE CONVERSATIONS WITH TOP AGENTS IN THE WAKE OF SUCH INCIDENTS MUCH OF THIS IS AN EXTENSION OF MR CLINTON'S PATTERN OF BEHAVIOR WHEN HE WAS GOVERNOR OF ARKANSAS THEN MR CLINTON WAS ONCE WITNESSED BERATING HIS PERSONAL AIDE DAVID FRIENDLY FOR ALLOWING REPORTERS TO FOLLOW HIM ONTO A GOLF COURSE DURING THE PRESIDENTIAL CAMPAIGN HE DRESSED DOWN MR FRIENDLY FOR PERMITTING CAMERAS TO WAIT FOR HIM AT THE BASE OF HIS DRIVEWAY BEFORE HIS MORNING JOG BUT SUCH FLAREUPS ROUTINELY SUBSIDE AFTER HIS DRIVEWAY OUTBURST AT MR FRIENDLY FOR INSTANCE MR CLINTON STRODE DOWN THE DRIVEWAY AND WAVED AT THE CAMERAS WHAT'S MORE MR FRIENDLY IS STILL MR CLINTON'S TRUSTED PERSONAL AIDE INDEED PEOPLE WHO KNOW MR CLINTON WELL SAY THAT HIS TEMPER PASSES LIKE A SUMMER STORM HE DOES LIKE TO VOICE HIS OPINION YOU ALWAYS PRETTY MUCH KNOW WHERE YOU STAND SAYS ONE LONGTIME AIDE WITH SELFCONSCIOUS UNDERSTATEMENT BUT THE NICE THING ABOUT WORKING FOR BILL CLINTON IS THAT IT DOESN'T LAST HE DOESN'T HOLD A GRUDGE EVERY DAY IS A NEW DAY DURING THE CAMPAIGN MR CLINTON WAS WELLKNOWN FOR HIS FINGERPOINTING HARANGUES AT STAFF AFTER FAILED EVENTS ON THE ROAD ANOTHER AIDE SAYS THAT THE OFFENDING AIDE WOULD VIRTUALLY BE FIRED AT 800 BE HORSEWHIPPED AT 805 GET A TALKING TO AT 810 AND BE A GOOD GUY BY 815 BUT AT YESTERDAY'S EVENT HERE MR CLINTON'S ANGER WAS CAPTURED ON TELEVISION HE CAME TO THE CONSTRUCTION SITE WITH THE CITY'S MAYOR SHARON PRATT KELLY AND ITS DELEGATE TO CONGRESS ELEANOR HOLMES NORTON THE EVENT WAS MEANT TO SHOW HOW EXTRA INFRASTRUCTURE SPENDING WOULD CREATE JOBS MR CLINTON WEARING AN ORANGE HARD HAT WALKED AHEAD OF THE TWO WOMEN TO TALK TO CONSTRUCTION WORKERS BUT AIDES STOPPED THE TWO C'MON C'MON ELEANOR AND THE MAYOR MR CLINTON SAID AND COULD BE HEARD ON A PORTABLE MICROPHONE THAT HE WAS WEARING HE THEN LET GO WITH STRONGER WORDS AFTER THE INCIDENT THE PRESIDENT'S REMARKS WHICH WERE BEING PIPED BACK TO THE WHITE HOUSE PRESS ROOM WERE CUT OFF 9302170010 930217 BANC ONE TO BUY BANK FIRM COLUMBUS OHIO BANC ONE CORP SAID ITS COLORADO UNIT REACHED AN AGREEMENT TO ACQUIRE COLORADO WESTERN BANCORP INC FOR ABOUT 165 MILLION THE MOVE STRENGTHENS BANC ONE'S POSITION IN COLORADO WHICH THE BANK HOLDING COMPANY ENTERED IN LATE 1991 COLORADO WESTERN BASED IN MONTROSE IS A ONEBANK HOLDING COMPANY WITH 75 MILLION IN ASSETS BANC ONE HAS 614 BILLION IN ASSETS 9302170009 930217 LETTERS TO THE EDITOR NONWORKING MOM HAS STATUS OF SERF YOUR JAN 22 EDITORIAL HILLARY'S JOB STATES THAT HILLARY DOESN'T DO TEAS PRESUMABLY MEANING DOMESTIC TASKS AND GOES ON TO ASK AND WHY SHOULD SHE SHE IS A FORCEFUL INTELLIGENT WOMAN THIS IS A VERY INTERESTING COMMENT COMING FROM THE JOURNAL AFTER WORKING AT A RESPONSIBLE CORPORATE MANAGEMENT JOB FOR 14 YEARS SEVEN OF THEM AS A MOTHER I QUIT WORK TO FOCUS ON MY FAMILY I WAS SURPRISED TO DISCOVER THE DEPTH AND BREADTH OF ANTISTAYATHOMEMOMISM IN OUR SOCIETY DESPITE YEARS OF PASSIONATE DISCUSSION ABOUT FAMILY VALUES THE IMPORTANCE OF NURTURING AND PARENTAL GUIDANCE AND THE VALUE OF MODELING RESPONSIBLE BEHAVIOR SINCE CEASING TO WORK OUTSIDE THE HOME I HAVE BEEN TREATED AS NEIGHBORHOOD BABY SITTER AND DRIVER CAN'T YOU WATCH SOANDSO SINCE YOU'RE NOT DOING ANYTHING NOW CAN'T YOU TAKE SOANDSO TO EXTRACURRICULAR ACTIVITIES SINCE I'LL BE AT WORK I HAVE BEEN RIDICULED AS A SUCKER FOR DOING ADDITIONAL VOLUNTEER WORK ON BEHALF OF MY CHILDREN'S SCHOOLS I HAVE EVEN BEEN REFERRED TO AS A SERVANT IN THE PRESENCE OF MY CHILDREN THESE ARE COMMENTS FROM HIGHLY EDUCATED FRIENDS WHEN ONE'S OCCUPATION IS SO DEVALUED AND DEMEANED IT UNQUESTIONABLY AFFECTS SELFESTEEM ONE IS CHALLENGED DAILY TO REMAKE THE COMMITMENT TO STAY AT HOME AND WHEN PAPERS AS SERIOUS AND THOUGHTFUL AS THE JOURNAL RUN EDITORIALS LIKE THIS ONE IT IS CLEAR THAT AMERICAN SOCIETY REALLY IS NO LONGER COMFORTABLE WITH THE ROLE OF NONWORKING MOM VOLUMINOUS LIP SERVICE TO THE CONTRARY NOTWITHSTANDING 9302170008 930217 BUSINESS BRIEF KIMBERLYCLARK TO ENTER EUROPE MARKET FOR DISPOSABLE DIAPERS TRAINING PANTS KIMBERLYCLARK CORP MAKER OF THE LEADING US DIAPER BRAND HUGGIES WILL ENTER THE 4 BILLION EUROPEAN MARKET FOR DISPOSABLE DIAPERS AND TRAINING PANTS WITHIN THE NEXT YEAR THE MOVE WHICH HAS LONG BEEN SPECULATED WILL PUT THE DALLAS CONSUMER PRODUCTS MAKER IN AN INTERNATIONAL DIAPER WAR WITH DOMESTIC ARCHRIVAL PROCTER & GAMBLE CO WHICH IS A DOMINANT DIAPER MAKER IN EUROPE WITH ITS PAMPERS BRAND AS A RESULT KIMBERLYCLARK'S SHORTTERM EARNINGS ARE EXPECTED TO BE HURT EXPENSES AND CAPITAL SPENDING IN EUROPE WILL MOUNT FOR AT LEAST THE NEXT TWO YEARS CHAIRMAN WAYNE R SANDERS WARNED ANALYSTS YESTERDAY THAT THEIR CONSENSUS ESTIMATE OF 362 FOR 1993 AND 412 FOR 1994 MAY NOT RECOGNIZE THE COST OF LAUNCHING THE NEW PRODUCTS IN ADDITION MR SANDERS CAUTIONED THAT THE REMAINDER OF THE FIRST QUARTER OF 1993 NEEDS TO IMPROVE TO MATCH LAST YEAR'S FIRSTQUARTER EARNINGS OF 82 CENTS A SHARE ADJUSTED FOR ACCOUNTING CHANGES CAPITAL SPENDING IN 1993 IS EXPECTED TO EXCEED 700 MILLION SURPASSING THE 691 MILLION SPENT IN 1992 HE SAID THE DALLAS CONSUMER PRODUCTS MAKER DECLINED TO SPECIFY WHERE OR WHEN THE EUROPEAN DIAPERS WILL BE LAUNCHED THEY WILL BE MANUFACTURED IN A 250 MILLION PLANT KIMBERLY STARTED BUILDING LAST YEAR IN BARTONUPONHUMBER ENGLAND WHICH IS SCHEDULED TO OPEN AT AN UNDISCLOSED TIME LATER THIS YEAR KIMBERLYCLARK WILL BE THE FIRST TO INTRODUCE TRAINING PANTS IN EUROPE ITS HUGGIES' PULLUPS TRAINING PANTS HAVE BEEN EXTREMELY SUCCESSFUL IN THE US WHERE THEY'VE RACKED UP AN ESTIMATED 300 MILLION IN SALES WITH AN ANNUAL GROWTH RATE THAT HAS SLOWED TO 17 WHILE PRIVATELABEL MAKERS HAVE LAUNCHED SIMILAR PRODUCTS P&G HAS YET TO BRING TRAINING PANTS TO THE MARKET KIMBERLYCLARK HAS HAD A TOUGH TIME BOOSTING ITS COMPARATIVELY SMALL PRESENCE IN EUROPE WHERE IT HAD 1992 SALES OF ABOUT 360 MILLION ITS PROPOSED JOINT VENTURE WITH GERMAN TISSUE MAKER VPSCHICKEDANZ FELL THROUGH LATE LAST YEAR WITH THE COMPANIES CITING THE WEAK EUROPEAN ECONOMY IT ALSO TOOK A RESTRUCTURING CHARGE OF 172 MILLION TO CUT 800 JOBS IN EUROPE AND 100 IN NORTH AMERICA MR SANDERS ALSO SAID KIMBERLY LAST YEAR UNDERESTIMATED THE DETERIORATION IN EUROPEAN ECONOMIC CONDITIONS AND THE DIFFICULTY OF EXPANDING KLEENEX BATHROOM TISSUE INTO GERMANY OVER THE PAST THREE YEARS CAPITAL SPENDING IN EUROPE WAS MORE THAN 400 MILLION ON THE DOMESTIC FRONT THE COMPANY SAID ITS NEW THINNER ULTRATRIM DIAPER NOW CONSTITUTES ABOUT 40 OF ITS BUSINESS INDICATING THAT THE THICKER HUGGIES BABY STEPS DIAPERS STILL HAS A STRONG FOLLOWING THE COMPANY HAS HAD A TOUGH TIME CONVINCING CONSUMERS THAT A THIN DIAPER CAN BE AS ABSORBENT AS A THICKER ONE PROCTER & GAMBLE HAS BEEN TESTING A NEW SUPERABSORBENT DIAPER IN THE NORTHWEST TO COUNTER THE ULTRATRIM 9302170007 930217 BUSINESS BRIEF COMCAST CORP PURCHASE OF FLEET CALL STOCK FOR 115 MILLION IS PLANNED FLEET CALL INC RUTHERFORD NJ SAID COMCAST CORP WILL BUY ABOUT 115 MILLION OF FLEET CALL STOCK IN ORDER TO MAINTAIN ITS 30 STAKE IN THE MOBILE RADIO SYSTEMS COMPANY UNDER AN EARLIER AGREEMENT COMCAST A PHILADELPHIA DEVELOPER OF CABLE COMMUNICATIONS SYSTEMS IS PERMITTED TO PARTICIPATE IN ANY ISSUANCE OF FLEET CALL STOCK TO MAINTAIN ITS STAKE FLEET CALL WHICH HAS A STOCKSWAP MERGER PENDING WITH DISPATCH COMMUNICATIONS INC RECENTLY ISSUED 161 MILLION SHARES TO DISPATCH'S STOCKHOLDERS COMCAST HAS THE RIGHT TO BUY 67 MILLION FLEET CALL SHARES AT 1675 EACH THE CLOSING PRICE OF THE STOCK THE DAY BEFORE THE DISPATCH MERGER WAS ANNOUNCED FLEET CALL SHARES CLOSED YESTERDAY AT 21 DOWN 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING UPON COMPLETION OF THE MERGER COMCAST WILL BUY THE SHARES EITHER WITH CASH OR WITH 70 MILLION IN CASH AND A TWOYEAR NOTE FOR THE BALANCE 9302170006 930217 WHAT'S NEWS WORLDWIDE CHRISTOPHER PLAYED DOWN PROSPECTS FOR A MIDEAST BREAKTHROUGH THE SECRETARY OF STATE WHO LEAVES TONIGHT ON HIS FIRST OVERSEAS MISSION SAID HE DOESN'T EXPECT TO GET AN IMMEDIATE GREEN LIGHT FOR RESUMPTION OF STALLED ARABISRAELI TALKS EVEN WITH UN ENDORSEMENT OF A US COMPROMISE WITH ISRAEL OVER PALESTINIAN DEPORTATIONS CHRISTOPHER VOICED LIMITED EXPECTATIONS AS HE MET IN WASHINGTON WITH ISRAELI FOREIGN MINISTER PERES I HOPE THAT SUBSEQUENTLY THE PEACE PROCESS CAN BE RESTARTED CHRISTOPHER SAID BUT HE ADDED I WOULD NOT EXPECT THAT TO HAPPEN DURING THE COURSE OF MY TRIP CHRISTOPHER PLANS TO STOP IN EGYPT JORDAN SYRIA SAUDI ARABIA KUWAIT AND ISRAEL HE WILL THEN MEET IN GENEVA WITH RUSSIA'S FOREIGN MINISTER AND GO ON TO BRUSSELS FOR NATO TALKS UN MEDIATOR VANCE IS EXPECTED TO QUIT PEACE TALKS ON THE FORMER YUGOSLAVIA ONCE NEGOTIATIONS ON BOSNIA ARE COMPLETED IN NEW YORK DIPLOMATS SAID IN BOSNIA SERBS BATTERED SARAJEVO AND BLOCKED AN AIRPORT ROAD ON THE BORDER WITH YUGOSLAVIA SERBS HALTED A UN CONVOY FOR A THIRD DAY BUT A SECOND CONVOY PASSED INTO BOSNIA KOSOVO'S PRESIDENT PRESSED FOR US AND INTERNATIONAL ACTION INCLUDING IMMEDIATE DEPLOYMENT OF UN PEACEKEEPERS TO PREVENT THE BALKAN WAR FROM SPREADING TO HIS SEMIAUTONOMOUS PROVINCE RUGOVA ON A TRIP TO WASHINGTON SAID A US THREAT TO USE FORCE IN RESPONSE TO SERB AGGRESSION WOULD HELP PROTECT KOSOVO DEFENSE SECRETARY ASPIN HAS DELAYED RELEASE OF A REPORT ON THE NAVY'S TAILHOOK SEX ABUSE SCANDAL UNTIL THE APPOINTMENT OF A NEW NAVY SECRETARY A PENTAGON SPOKESMAN SAID POLITICS HAD NOTHING TO DO WITH DELAYING THE REPORT ON THE SEXUAL HARASSMENT OF WOMEN AT A 1991 AVIATORS' CONVENTION THE REPORT WAS TO HAVE BEEN ISSUED THIS MONTH YELTSIN REQUESTED AN URGENT SESSION OF RUSSIA'S LEGISLATURE AIMED AT ENDING A POWER STRUGGLE THAT COULD DERAIL HIS REFORMS A STATEMENT ISSUED AFTER KREMLIN TALKS BETWEEN THE PRESIDENT AND HIS CONSERVATIVE RIVAL KHASBULATOV SUGGESTED THE CONGRESS OF PEOPLE'S DEPUTIES COULD MEET IN EARLY MARCH TO RATIFY A POWERSHARING ACCORD MEN WHO HAVE VASECTOMIES MAY RUN A HIGHER RISK OF DEVELOPING PROSTATE CANCER TWO STUDIES INDICATED BOTH STUDIES DONE BY BOSTON RESEARCHERS INDICATED THAT MEN WHO HAD VASECTOMIES OVER 20 YEARS AGO MIGHT HAVE AN 85 TO 90 HIGHER RISK OF DEVELOPING PROSTATE CANCER THAN MEN WHO DIDN'T HAVE THE OPERATION INTERIOR SECRETARY BABBITT APPEALED FOR A BROAD NEW APPROACH TO THE ENDANGERED SPECIES ACT THAT SEEKS TO PROTECT ENTIRE ECOSYSTEMS INSTEAD OF FOCUSING ON INDIVIDUAL PLANTS AND ANIMALS BABBITT ALSO TOLD A HOUSE COMMITTEE THAT THE ADMINISTRATION WOULD BOOST NATIONAL PARK FUNDING HE ENDORSED MINING LAW REFORMS IRAN IS WORKING WITH NORTH KOREA ON DEVELOPING A LONGRANGE MISSILE MILITARY SOURCES SAID THE SOURCES SPEAKING ON CONDITION OF ANONYMITY AT AN ARMS SHOW IN THE UNITED ARAB EMIRATES SAID THE NORTH KOREAN SYSTEM COULD BE READY FOR PRODUCTION WITHIN THREE YEARS UN CHIEF BOUTROSGHALI ASKED JAPAN TO PLAY A BIGGER ROLE IN WORLD PEACEKEEPING SAYING THIS WOULD HELP COUNTER COMPLAINTS THAT THE UN WAS DOMINATED BY THE US BUT PRIME MINISTER MIYAZAWA FACING DOMESTIC OPPOSITION TO EXPANDED RESPONSIBILITIES FOR JAPAN'S ARMY RESPONDED CAUTIOUSLY DURING A MEETING IN TOKYO WITH THE UN CHIEF THE UN PLANS TO SEND MORE WEAPONS INSPECTORS TO BAGHDAD AND CONDUCT AERIAL SURVEYS OF TWO SITES WHERE IT SUSPECTS SADDAM HUSSEIN'S GOVERNMENT DESIGNED NUCLEAR ARMS UN OFFICIALS SAID THE DECISION TO CHALLENGE AN IRAQI BAN ON FLIGHTS OVER BAGHDAD WILL TEST IRAQ'S COMPLIANCE WITH UN TERMS FOR ENDING THE GULF WAR THE HOUSE URGED THAT THE US REMAIN OPPOSED TO RESUMPTION OF COMMERCIAL WHALING DESPITE PRESSURE FROM NORWAY AND OTHER WHALING NATIONS THE NONBINDING RESOLUTION PASSED 3820 ALSO SAID THE US SHOULD WORK TOWARD A MORATORIUM ON THE DIRECT COMMERCIAL HARVEST OF DOLPHINS AND PORPOISES THE MEASURE WAS SENT TO THE SENATE CHINA'S AGRICULTURE MINISTER CRITICIZED LOCAL OFFICIALS FOR LEVYING EXCESSIVE TAXES AND FEES ON FARMERS SENIOR OFFICIALS IN BEIJING ARE SAID TO BE CONCERNED ABOUT RECENT PUBLIC PROTESTS BY ANGRY FARMERS 9302170005 930217 BUSINESS BRIEF NATIONAL SEMICONDUCTOR CORP CONCERN FILES SUIT INVOLVING PATENT DISPUTE WITH LORAL NATIONAL SEMICONDUCTOR CORP SAID IT FILED A LAWSUIT AGAINST LORAL CORP ASKING THE COURT TO DECLARE THAT NATIONAL OWNS PATENTS COVERING METHODS FOR MAKING CERTAIN COMPONENTS THAT ACT AS ELECTRONIC EYES IN TELEVISION CAMERAS AND OTHER DEVICES THE SUIT WAS FILED IN A CALIFORNIA STATE COURT IN SANTA CLARA CALIF THE PATENTS IN QUESTION COVER PRODUCTION METHODS FOR SOCALLED CHARGEDCOUPLED DEVICES DEVELOPED IN THE 1970S AT FAIRCHILD SEMICONDUCTOR CORP A WHOLLY OWNED SUBSIDIARY OF NATIONAL NATIONAL ACQUIRED FAIRCHILD IN 1987 AND SAYS IT ACQUIRED ALL FAIRCHILD PROCESS PATENTS INCLUDING THOSE NAMED IN THE LORAL SUIT OFFICIALS OF NEW YORKBASED LORAL COULDN'T BE REACHED FOR COMMENT NATIONAL BASED IN SANTA CLARA SAID IT FILED THE SUIT BECAUSE LORAL IN A SEPARATE PATENTINFRINGEMENT SUIT FILED IN NEW YORK IS CLAIMING OWNERSHIP OF TWO PATENTS OWNED BY FAIRCHILD 9302170004 930217 FINANCING BUSINESS CAMBRIDGE BIOTECH CORP CAMBRIDGE BIOTECH CORP WORCESTER MASS SAID IT IS SEEKING TO WITHDRAW ITS 100 MILLION SHELF REGISTRATION STATEMENT FILED DEC 3 WITH THE SECURITIES AND EXCHANGE COMMISSION PETER HARTMAN VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER SAID THE REGISTRATION LED PEOPLE TO BELIEVE THAT A LARGE PUBLIC OFFERING WAS CONTEMPLATED IN THE NEAR TERM THIS WAS NEVER THE COMPANY'S INTENTION OUR INTENT WAS TO UTILIZE REVISED SEC SHELF REGISTRATION RULES IN ORDER TO BE READY FOR POSSIBLE OFFERINGS OVER THE NEXT TWO YEARS TO CLEAR UP ANY MISCONCEPTIONS HE SAID WITHDRAWING THIS REGISTRATION IS IN THE COMPANY'S BEST INTEREST CAMBRIDGE BIOTECH IS DEVELOPING DIAGNOSTICS AND VACCINES FOR INFECTIOUS DISEASES 9302170003 930217 ABREAST OF THE MARKET INDUSTRIALS PLUNGE 8294 ON WORRY OVER CLINTON'S TALK OF TAX BOOST BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET GROWLED AT PRESIDENT CLINTON'S TALK OF HIGHER TAXES SCARING MONEY OUT OF THE STOCK MARKET THE DOW JONES INDUSTRIAL AVERAGE LOST 8294 POINTS OR 244 TO 330949 THE BIGGEST DECLINE IN BOTH POINTS AND PERCENTAGE SINCE NOV 15 1991 VOLUME SURGED TO 325350000 SHARES COMPARED WITH 215750000 ON FRIDAY ANALYSTS DOUBT MR CLINTON CAN SAY ANYTHING IN HIS ECONOMIC AND BUDGET ADDRESS TONIGHT TO IMPROVE THE MARKET'S MOOD MANY INVESTORS ALREADY BELIEVE STOCKS ARE OVERPRICED AND WILL TAKE ANY NEWS AS AN EXCUSE TO SELL THE MARKET'S IN A NOWIN SITUATION SAID MICHAEL METZ MARKET STRATEGIST AT OPPENHEIMER & CO HE WARNED THAT MR CLINTON'S TAX PLAN WOULD PUT A DRAG ON CORPORATE PROFITS BUT THAT IF THE PRESIDENT FAILS TO PUSH HIS TAX PLAN THROUGH CONGRESS INTEREST RATES MAY RISE TRADERS SAY THE STOCK MARKET IS VULNERABLE TO FURTHER SELLING BECAUSE IT IS JUST COMING OFF RECORD HIGHS HOWEVER MANY MARKET WATCHERS EXPECT THE CURRENT RETREAT TO END SOON CARMINE GRIGOLI CHIEF US PORTFOLIO STRATEGIST AT BARING SECURITIES NOTED THE INDUSTRIAL AVERAGE HAS LOST 133 POINTS OR NEARLY 4 SINCE PEAKING JUST SIX SESSIONS AGO THAT'S A BIT OF AN OVERREACTION HE SAID MR GRIGOLI AGREED HOWEVER THAT THE TAX NEWS IS NEGATIVE FOR THE STOCK MARKET STANDARD & POOR'S 500STOCK INDEX LOST 1067 POINTS TO 43391 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 581 TO 23949 THE MARKET WAS MOST UPSET BY INDICATIONS THAT THE MIDDLE CLASS MAY SEE THEIR INCOME TAXES RISE IN HIS OVAL OFFICE SPEECH MONDAY NIGHT MR CLINTON SAID HE COULDN'T PROTECT THE MIDDLE CLASS FROM HIGHER TAXES AS HE HAD PROMISED TO DO DURING THE PRESIDENTIAL CAMPAIGN HIGHER TAXES ON THE MIDDLE CLASS ARE EXPECTED TO PUT A DAMPER ON CONSUMER SPENDING WHICH IS CONSIDERED A KEY TO THE ECONOMIC RECOVERY MR CLINTON'S EXPECTED PROPOSALS TO RAISE CORPORATE TAX RATES TO 36 FROM 34 ALSO ANGERED WALL STREET TWO SECTORS HIT HARD BY THE TAX TALK WERE HEATH CARE AND TRANSPORTATION STOCKS MR CLINTON IS EXPECTED TO TRY TO CHANGE PROVISIONS IN THE TAX CODE THAT ALLOW DRUG COMPANIES TO EARN TAXEXEMPT PROFITS IN PUERTO RICO THE PRESIDENT HAS ALSO ATTACKED THE DRUG INDUSTRY'S PRICING PRACTICES AND IS EXPECTED TO INTRODUCE REGULATIONS THAT WOULD LIMIT THE RATE AT WHICH DRUG PRICES CAN BE RAISED DRUG STOCKS SANK AS DID OTHER HEALTH CARE SHARES MERCK LOST 2 1/2 TO 37 7/8 PFIZER FELL 4 1/8 TO 60 1/8 AND SCHERINGPLOUGH SLID 3 3/4 TO 59 3/8 HEALTH MAINTENANCE ORGANIZATION STOCKS CONTINUED TO LOSE GROUND FOUNDATION HEALTH DROPPED 3 3/8 TO 30 1/4 AND UNITED HEALTHCARE TUMBLED 4 3/8 TO 51 1/2 EVEN MEDICAL DEVICE STOCKS WHICH HAD AVOIDED EARLIER BLOODLETTING WERE DUMPED YESTERDAY US SURGICAL FELL 2 7/8 TO 67 7/8 AND MEDTRONIC DROPPED 5 3/8 TO 85 1/2 OFFICE DEPOT'S STOCK PLUNGED 4 1/4 TO 28 5/8 YESTERDAY AND HOME DEPOT TUMBLED 3 3/8 TO 60 1/2 ON VOLUME OF 39 MILLION SHARES A SPOKESMAN FOR BARRON'S SAID THE PUBLICATION MISIDENTIFIED IN ITS UP & DOWN WALL STREET COLUMN A FAVORITE SHORT OF CEDD MOSES OF PORTFOLIO ADVISORY SERVICES THE COLUMN REFERRED TO HOME DEPOT IT SHOULD HAVE BEEN OFFICE DEPOT BUT A TABLE ACCOMPANYING THE COLUMN DID CORRECTLY IDENTIFY OFFICE DEPOT AS AMONG MR MOSES' SHORTS MR CLINTON'S EXPECTED PROPOSAL TO LEVY A TAX ON ENERGY BASED ON THE HEAT CONTENT OF FUELS HURT TRANSPORTATION STOCKS THE TAX WOULD RAISE FUEL COSTS FOR MANY FIRMS ANALYSTS SAID THE SELLING DROVE THE DOW JONES TRANSPORTATION AVERAGE DOWN 6346 POINTS TO 151548 AMONG THE AIRLINES UAL FELL 6 1/2 TO 119 1/2 AMR DROPPED 2 1/4 TO 60 3/4 AND DELTA AIR LINES TUMBLED 2 3/8 TO 49 TRUCKING STOCKS FELL INCLUDING CONSOLIDATED FREIGHTWAYS WHICH LOST 1 1/8 TO 19 1/8 AND RYDER WHICH FELL 1 5/8 TO 28 3/4 EVEN RAIL STOCKS ENDED LOWER THE ENERGY TAX IS EXPECTED TO HIT COAL PRICES HARDEST HURTING DEMAND FOR THE FUEL WHICH IS TRANSPORTED BY RAIL CONSOLIDATED RAIL FELL 3 3/8 TO 53 3/8 AND SANTA FE PACIFIC ENDED 5/8 POINT LOWER AT 14 STUDENT LOAN MARKETING ASSOCIATION EASED 2 TO 56 5/8 SINCE THE START OF THE MONTH THE STOCK HAS FALLEN 23 ON CONCERN THAT PRESIDENT CLINTON WILL PHASE IN A DIRECT STUDENT LOAN PROGRAM GOLD STOCKS GAINED AS INVESTORS SOUGHT A HAVEN FROM THE SELLING BATTLE MOUNTAIN GOLD JUMPED 3/8 TO 6 HOMESTAKE MINING GAINED 1/2 TO 12 3/8 AND LAC MINERALS ROSE 1/4 TO 5 7/8 YESTERDAY LAC MINERALS REPORTED ENCOURAGING RESULTS FROM ITS 1992 GOLD EXPLORATION PROGRAM PLACER DOME WHICH PRODUCES SILVER COPPER AND OTHER METALS GAINED 3/8 TO 14 1/8 ON HEAVY VOLUME THE COMPANY REPORTED FOURTHQUARTER PROFIT FROM CONTINUING OPERATIONS OF 18 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 120 A SHARE TELECOM CORP OF NEW ZEALAND'S AMERICAN DEPOSITARY RECEIPTS JUMPED 2 TO 28 1/2 ON MONDAY THE COMPANY REPORTED THAT ITS PROFIT ROSE 53 IN THE LATEST NINEMONTH PERIOD FROM A YEAR EARLIER NIKE LOST 9 1/8 TO 73 AFTER ANNOUNCING LATE FRIDAY THAT IT MIGHT NOT MEET ANALYSTS' EARNINGS ESTIMATES FOR THE YEAR ENDING MAY 31 THE COMPANY SAID ANALYSTS' ESTIMATES OF 490 TO 5 A SHARE FOR THE YEAR ARE TOO HIGH BECAUSE WEAKNESS IN ITS EUROPEAN MARKETS AND A RISING DOLLAR HAVE HURT PROFIT AMERICAN STOCK EXCHANGE VOLUME TOTALED 19250000 SHARES COMPARED WITH 13630000 FRIDAY THERE WERE 125 ISSUES ADVANCING 501 DECLINING AND 162 UNCHANGED 9302170002 930217 CORRECTIONS & AMPLIFICATIONS AMERICAN GENERAL CORP'S FOURTHQUARTER NET INCOME FIGURES FOR BOTH 1992 AND 1991 WERE MISSTATED IN YESTERDAY'S REPORT ON CORPORATE PERFORMANCE RESULTING IN INCORRECT PROFIT TOTALS FOR THE LIFE INSURANCE CATEGORY THE FINANCIAL SERVICES CATEGORY AND THE 619 COMPANIES SURVEYED AMERICAN GENERAL EARNED 133698000 IN THE LATEST QUARTER UP 12 FROM 119431000 IN THE YEAREARLIER PERIOD TOTAL NET FOR THE LIFE INSURANCE GROUP ROSE 17 TO 484752000 FROM 413102000 A YEAR EARLIER THE FINANCIAL SERVICES GROUP HAD PROFIT OF 6651305000 UP 80 FROM 3694292000 WHILE NET FOR ALL 619 COMPANIES WAS 26224355000 UP 62 FROM 16147242000 9302170001 930217 BUSINESS BRIEF CREATIVE TECHNOLOGY LTD TERMS OF AGREEMENT TO BUY EMU SYSTEMS ARE AMENDED CREATIVE TECHNOLOGY LTD SAID IT AMENDED THE TERMS OF ITS AGREEMENT TO ACQUIRE CLOSELY HELD EMU SYSTEMS INC ADDING THAT IT MAY POST A LOSS IN ITS CURRENT QUARTER TO ACCOUNT FOR THE PURCHASE UNDER THE NEW AGREEMENT CREATIVE WILL PAY ABOUT 295 MILLION TO ACQUIRE EMU A SCOTTS VALLEY CALIF MAKER OF DIGITALAUDIO PRODUCTS THE ORIGINAL AGREEMENT CALLED FOR CREATIVE TO ACQUIRE EMU FOR ABOUT 145 MILLION CREATIVE SHARES IN A DEAL THAT WAS TO HAVE BEEN ACCOUNTED FOR AS A POOLING OF INTERESTS THE AGREEMENT WAS AMENDED BECAUSE THE SECURITIES AND EXCHANGE COMMISSION DETERMINED THAT THE ACQUISITION WOULDN'T QUALIFY AS A POOLING OF INTERESTS CREATIVE SAID BASED IN MILPITAS CALIF CREATIVE A MAKER OF AUDIO ADDIN BOARDS FOR PERSONAL COMPUTERS SAID IT EXPECTS TO TAKE A ONETIME CHARGE FOR THE ACQUISITION IN ITS FISCAL THIRD QUARTER ENDING MARCH 31 THE CHARGE IS EQUAL TO A SIGNIFICANT PORTION OR SUBSTANTIALLY ALL OF THE 295 MILLION PURCHASE PRICE PLUS ABOUT 25 MILLION IN TRANSACTION COSTS CREATIVE SAID THE COMPANY ALSO SAID IT MAY REPORT A NET LOSS FOR THE QUARTER BECAUSE OF THE CHARGE 9302170150 930122 REVIEW & OUTLOOK EDITORIAL HILLARY'S JOB IT WAS GOOD TO READ IN THE JOURNAL YESTERDAY THAT PRESIDENT CLINTON IS THINKING OF GIVING HIS WIFE HILLARY THE JOB OF HEALTHCARE REFORM CZAR THE ASSIGNMENT HASN'T BEEN CONFIRMED YET BUT IT WOULD BE GOOD FOR A NUMBER OF REASONS SOME OF WHICH BEAR DIRECTLY ON HILLARY CLINTON'S ROLE AND SOME MORE GENERALLY ON THE ROLE OR MULTIPLE ROLES OF WOMEN IN OUR TIMES THE CONSEQUENCE OF NOT GIVING HILLARY A REAL JOB DOESN'T LOOK ATTRACTIVE THE IDEA THAT MRS CLINTON WOULD HAVE AN OFFICE IN THE WEST WING THE HEAVY HITTERS' WING WOULD HAVE HER OWN STAFF WOULD CARRY NO OFFICIAL TITLE OR ASSIGNMENT BUT WOULD SIT IN A CORNER OF THE CABINET MEETINGS TAKING DOWN NAMES IS A RECIPE FOR A FULLCORE MELTDOWN OF THE CLINTON ADMINISTRATION THE FIRST TIME IT BECAME KNOWN THAT MRS CLINTON HAD OVERRULED A CABINET SECRETARY THE NEW CABINET WOULD COLLAPSE AS A FUNCTIONING INSTRUMENT OF DISCUSSION AND ADVICE THE INHERENT INTIMIDATION FACTOR IS OVERWHELMING HOW WOULD THIS BE DIFFERENT THAN TO HAVE HAD NANCY REAGAN SITTING IN ON CABINET MEETINGS BUT HILLARY DOESN'T DO TEAS AND WHY SHOULD SHE SHE IS UNDOUBTEDLY AS HER MANY BOSWELLS HAVE WRITTEN A FORCEFUL INTELLIGENT WOMAN OF INDEPENDENT ACCOMPLISHMENT IT MAY WELL BE THAT THE TIME HAS COME TO RETHINK THE FIRST LADY MODEL THAT WE'VE LIVED WITH FOR SOME 200 YEARS HILLARY CLINTON IS HARDLY UNIQUE A PRESIDENT DICK CHENEY WOULD COME WITH LYNNE CHENEY PHIL GRAMM COMES WITH WENDY GRAMM AS A FORCE OF NATURE BOTH ARE HILLARY'S EQUAL AT THE VERY LEAST ONCE THE LAWYERS FIGURE A WAY AROUND THE BOBBY KENNEDY RULE PUTTING HILLARY AT THE HEAD OF AN INTERAGENCY TASK FORCE ON HEALTH CARE MAKES CONSIDERABLE SENSE CERTAINLY IT IS POSSIBLE THAT THE DARK NIGHT OF THE PROGRESSIVES WOULD DESCEND ON US ALL THAT MRS CLINTON HHS'S DONNA SHALALA AND CLINTON AIDE IRA MAGAZINER WOULD CONSPIRE TO TRULY NATIONALIZE HEALTH CARE BUT IF OUR READING OF THE MANY RECENT MEDIA HAGIOGRAPHIES OF THE FIRST LADY ARE CORRECT HILLARY RODHAM'S ANIMATING LIFE FORCE HAS BEEN TO SUCCEED SUCCESS IN HEALTHCARE REFORM IS GOING TO REQUIRE MOST OF ALL A MATURITY OF JUDGMENT ABOUT HOW BEST TO HANDLE THE ISSUE'S ENDLESS OFTEN CONTRADICTORY FORCES SIMPLY TYING A RIBBON AROUND SOME PROGRESSIVE PIPE DREAM WOULD ENSURE A LARGE AND VERY PUBLIC FAILURE DECIPHERING THE HEALTHCARE PUZZLE IS A SERIOUS COMPLEX JOB JUST LIKE THE JOBS THAT ALL THE OTHER SERIOUS PEOPLE IN THE CLINTON ADMINISTRATION ARE TAKING ON IF MRS CLINTON IS GOING TO REVISE THE WAY WE THINK ABOUT FIRST LADIES BETTER IT SHOULD BE IN AN ASSIGNMENT LIKE THIS AS A PUBLIC EQUAL OF HER ADMINISTRATION PEERS THAN AS A FIGURE IN THE SHADOWS THAT SAID WE THINK MRS CLINTON'S BOOSTERS OUGHT TO CONSIDER THE POSSIBILITY THAT THEY ARE DISTORTING PUBLIC UNDERSTANDING OF THEIR OWN CAUSE ELEVATING THE ROLE OF WOMEN IN PUBLIC LIFE IT IS HARD NOT TO NOTICE THAT WHEN WHAT HILLARY CLINTON REPRESENTS IS WRITTEN ABOUT THE ONE GROUP OF WOMEN WHO MERIT NO MENTION ARE THE WOMEN WHO HAVE SERVED IN THE BUSH ADMINISTRATION OUR LIST WOULD INCLUDE CARLA HILLS THE TRADE REPRESENTATIVE LYNN MARTIN LABOR SECRETARY LYNNE CHENEY THE HUMANITIES ENDOWMENT WENDY GRAMM CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION CONNIE HORNER DIRECTOR OF WHITE HOUSE PERSONNEL GAIL WILENSKY WHO RAN MEDICAID AND MEDICARE DIANE RAVITCH POLICY AT EDUCATION AND LEE LIBERMAN DEPUTY WHITE HOUSE COUNSEL YOU COULD ELECT ANY ONE OF THESE WOMEN TO THE OVAL OFFICE AND STOCK THE CABINET WITH THE REST OF THEM AND THE COUNTRY WOULD RUN LIKE CLOCKWORK BUT THEY ARE REPUBLICAN WOMEN AND SOLIDARITY OF SOME SORT SAYS THEY DON'T COUNT AN EXCLUSIONARY PRACTICE ONE MIGHT HAVE THOUGHT ABANDONED BACK AROUND THE EIGHTH GRADE SUCH SILENT BLACKLISTING OF ACCOMPLISHED WOMEN IN PUBLIC LIFE IS GOING TO CONFUSE MANY LESSPOLITICAL WOMEN AND PERHAPS CAUSE SOME UNFORTUNATE CASUALTIES ZOE BAIRD ONE OF THE FEW PEOPLE WHO SEEMS TO HAVE BEEN PRESIDENT CLINTON'S PERSONAL CHOICE HAS NOW FALLEN INTO SOME SORT OF POLITICALLY INCORRECT GRAY AREA MANY OF THE WOMEN WHO ARE PRESSING HILLARY'S CAUSE SEEM CONTENT TO LET MS BAIRD BLEED TO DEATH IN FRONT OF JOE BIDEN'S HUMILIATING COMMITTEE RIGHT NOW ZOE BAIRD IS HIS NOMINEE WAS THE WHITE HOUSE'S SEMISUPPORT YESTERDAY HILLARY CLINTON IS BEING ASKED TO CARRY A HEAVY LOAD FOR A LOT OF OTHER PEOPLE IT WOULDN'T BE SO HEAVY OR RISKY IF HER SUPPORTERS LONG AGO HAD MORE HONESTLY DISPERSED THE BURDEN SEE RELATED LETTER LETTERS TO THE EDITOR WE LIKE HILLARY WSJ FEB 3 1993 SEE RELATED LETTER LETTERS TO THE EDITOR NONWORKING MOM HAS STATUS OF SERF WSJ FEB 16 1993 9301220012 9302030128 9302170144 930120 LAW LEGAL BEAT BANKS FORCE GRIPING CUSTOMERS TO FORGO COURTS FOR ARBITRATION BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SEEKING TO CUT LEGAL COSTS SEVERAL BIG BANKS HAVE TAKEN A STEP TO KEEP CONSUMER DISPUTES OUT OF COURT AND THE REST OF THE INDUSTRY IS POISED TO FOLLOW SUIT BANKAMERICA CORP SAN FRANCISCO TOLD HOLDERS OF DEPOSIT AND CREDITCARD ACCOUNTS LAST SUMMER THAT ANY COMPLAINT THEY HAVE WOULD HENCEFORTH BE SUBJECT TO ARBITRATION THE UNILATERAL MOVE WAS COPIED WEEKS LATER BY CROSSTOWN RIVAL WELLS FARGO & CO THOUGH ITS POLICY PERMITS JUDICIAL APPEALS AND APPLIES ONLY IF 25000 OR MORE IS AT STAKE NOW HALF A DOZEN OTHER HUGE BANKS ACROSS THE COUNTRY ALSO ARE PREPARING TO IMPOSE NEW DISPUTERESOLUTION POLICIES SAYS LAURIE MOSS OF THE AMERICAN ARBITRATION ASSOCIATION OVER THE NEXT SIX TO 12 MONTHS YOU'LL HEAR A LOT MORE ABOUT IT SHE SAYS DECLINING TO CITE SPECIFIC BANKS THAT HER ORGANIZATION IS ADVISING A CALIFORNIA BANKERS ASSOCIATION SPOKESWOMAN CONFIRMED THAT NUMEROUS BANKS ARE LOOKING INTO IT NOT ALL BANK CUSTOMERS ARE ENTHUSIASTIC ABOUT THE MOVE SOME BANKAMERICA CUSTOMERS TOGETHER WITH CONSUMER ACTION A NONPROFIT GROUP IN SAN FRANCISCO AND THE CALIFORNIA TRIAL LAWYERS ASSOCIATION HAVE SUED THE COMPANY IN SAN FRANCISCO SUPERIOR COURT TO CANCEL THE POLICY CHANGE JAMES STURDEVANT THE PLAINTIFFS' ATTORNEY SAYS THIS WOULD WIPE OUT A NUMBER OF SUITS WE HAVE WON BY TRIAL OR SETTLEMENT CONSUMERS WOULDN'T GET THE MONEY THAT THEY HAVE IN PAST ARBITRATION IS A CLOSEDDOOR PROCEEDING CONDUCTED MUCH LIKE A TRIAL BUT WITHOUT SOME ELEMENTS OF DUE PROCESS THAT MOST PEOPLE TAKE FOR GRANTED SUCH AS THE RIGHT OF APPEAL AND DELIBERATION BY A JURY PARTIES PAY A 300 ARBITRATION FEE PLUS 200 TO 800 A DAY FOR A MUTUALLY ACCEPTABLE REFEREE OFTEN A RETIRED JUDGE TO PONDER THE FACTS AND RENDER A DECISION A NONBINDING FORM OF THIS PROCESS IS KNOWN AS MEDIATION THUS FAR ARBITRATION HAS BEEN SELDOM USED AT THE RETAIL LEVEL THE NOTABLE EXCEPTIONS BEING AT STOCK BROKERAGE FIRMS AND SOME CAR DEALERSHIPS BUT IT'S A WIDELY USED ALTERNATIVE IN INTERCOMPANY DISPUTES SUCH AS BETWEEN BANKS AND THEIR COMMERCIAL BORROWERS IF THE PRACTICE BECOMES A FIXTURE IN RETAIL BANKING OTHER CONSUMERSERVICE COMPANIES INCLUDING MERCHANDISERS AND AIRLINES ALSO ARE EXPECTED TO MAKE ARBITRATION A CONDITION OF DOING BUSINESS WITH THEM OPPONENTS SAY ARBITRATION IS A CHEAPER QUICKER AND OFTEN MORECREATIVE MEANS OF RESOLVING DIFFERENCES THAN THROUGH THE OVERLOADED COURTS THE PROCESS BLOCKS NUISANCE SUITS AS WELL AS CONVOLUTED LEGAL MANEUVERS THAT MOST BANKS BUT FEW CUSTOMERS CAN AFFORD IT LEVELS THE PLAYING FIELD SAYS MS MOSS ADDS A WELLS FARGO SPOKESMAN THIS IS AN ATTEMPT TO GET A HANDLE ON LEGAL FEES I DON'T THINK SETTLEMENT AMOUNTS PAID TO PLAINTIFF CUSTOMERS WILL BE THAT MUCH DIFFERENT HOWEVER ARBITRATION ROBS BANK CUSTOMERS OF IMPORTANT LEGAL PROTECTIONS SAYS KEN MCELDOWNEY EXECUTIVE DIRECTOR OF CONSUMER ACTION ONE OF THESE IS THE CLASSACTION LAWSUIT WHICH ENABLES PATRONS TO JOIN TOGETHER TO CHALLENGE BUSINESS PRACTICES THAT MAY NOT AMOUNT TO MUCH INDIVIDUALLY BUT THAT CAUSE LARGE FINANCIAL HARM COLLECTIVELY LAST APRIL FOR EXAMPLE WELLS FARGO AND FIRST INTERSTATE BANCORP LOS ANGELES PAID 55 MILLION TO SETTLE CHARGES OF PRICEFIXING ON CREDITCARD INTEREST RATES INVOLVING THOUSANDS OF CARDHOLDERS BANKAMERICA WHICH REMAINS A DEFENDANT IN THE CASE NOTED THAT ITS POLICY WOULD PERMIT SUCH CASES TO BE HEARD IN APPEALS COURT AFTER AN ARBITRATION DECISION BUT NOT IN TRIAL COURT MR MCELDOWNEY SAYS THE ARBITRATION PROCESS ALSO ALLOWS NO DISCOVERY OF EVIDENCE MAKING THE SOMETIMES CRITICAL REVIEW OF CORPORATE RECORDS IMPOSSIBLE MOREOVER AN ARBITRATOR'S DECISION DOESN'T ESTABLISH ANY LEGAL PRECEDENT BECAUSE IT'S PRIVATE AND THUS THE SAME ISSUES MUST BE AIRED REPEATEDLY SAYS MR MCELDOWNEY WHO ALSO QUESTIONS THE IMPARTIALITY OF ARBITRATORS WHO ARE FREQUENTLY CALLED ON BY BANKS CRITICS ALSO FAULT THE WAY THE BANKS HAVE ADOPTED THE NEW POLICY BANKAMERICA AND WELLS FARGO INFORMED ITS CUSTOMERS WITH A NOTICE SET IN SMALL TYPE THAT WAS MAILED ALONG WITH MONTHLY BANK AND CREDITCARD STATEMENTS NO APPROVAL SIGNATURE WAS REQUESTED MERELY USING A CREDIT CARD OR HOLDING A DEPOSIT ACCOUNT SIGNALS A CUSTOMER'S ACCEPTANCE OF THE NEW TERMS JUST AS A CHANGE IN CHECKING FEES MIGHT BE ADOPTED IT'S A NONCONSENSUAL ATTEMPT TO IMPOSE THE WILL OF THE STRONGER ON THE WEAKER WITHOUT ANY ATTEMPT TO ALLOW THE WEAKER TO AGREE SAYS MR STURDEVANT IT'S ABSOLUTELY BRAZEN AND COMES ON HEELS OF ONE OF THE LARGEST MERGERS IN BANK HISTORY HE SAYS REFERRING TO BANKAMERICA'S 1992 ACQUISITION OF SECURITY PACIFIC CORP REGULATORS RAISED CONCERNS ABOUT THE BANK'S DOMINANCE IN SOME MARKETS BUT APPROVED THE DEAL AFTER THE BANK AGREED TO DIVEST ITSELF OF CERTAIN OPERATIONS THE SUIT AGAINST BANKAMERICA COULD SLOW THE BANKING INDUSTRY'S SHIFT TO ARBITRATION OR AT LEAST PERSUADE BANKS TO ADOPT POLICIES THAT GIVE CUSTOMERS MORE LATITUDE IN DISPUTES SUCH AS THE POLICY AT WELLS FARGO WHICH HASN'T BEEN SUED OVER ITS ARBITRATION REQUIREMENT MEANWHILE SAYS A SPOKESMAN FOR FIRST INTERSTATE WE'RE REVIEWING THESE OPTIONS VERY SERIOUSLY LITIGATION IS EXPENSIVE THE SCALES OF JUSTICE ARE GIVING WAY TO A ROTATING DRUM IN AN ARIZONA FEDERAL COURT NEXT MONTH IN US BANKRUPTCY COURT JUDGE LAWRENCE OLLASON'S COURTROOM A LUCKY WINNER WILL BE SELECTED FROM A PLEXIGLASS DRUM FILLED WITH LOTTERY TICKETS THE PRIZE COLLEGE BASKETBALL TICKETS ONCE OWNED BY A FAN NOW IN BANKRUPTCYLAW PROCEEDINGS IN THE PAST FEW YEARS A NUMBER OF FINANCIALLY TROUBLED UNIVERSITY OF ARIZONA BASKETBALL ENTHUSIASTS HAVE FILED FOR BANKRUPTCYLAW PROTECTION PLACING THEIR ASSETS SEASON TICKETS AND ALL AT THE MERCY OF JUDGE OLLASON PREVIOUSLY THE TUSCON JUDGE AUCTIONED OFF THE VALUABLE TICKET RIGHTS ALONG WITH THE OTHER ASSETS OF THE ARIZONA WILDCATS FANS BUT ALAN SOLOT A TUSCON LAWYER FOR ONE OF THE WILDCATS FANS NOW BEFORE JUDGE OLLASON SUCCESSFULLY PROPOSED THAT HIS CLIENTS' TICKETS BE RAFFLED RATHER THAN AUCTIONED STARTING NEXT WEEK ASPIRING SPECTATORS CAN BUY 10 LOTTERY TICKETS FROM TICKETMASTERARIZONA INC MR SOLOT SAID HE HOPES SELLING LOTTERY TICKETS FOR THE POPULAR WILDCATS' GAMES WILL BRING IN MORE MONEY THAN AN AUCTION WOULD HAVE THE LOTTERY SCHEME WILL MEAN THAT THE MAN ON THE STREET WILL HAVE HIS SHOT AT THIS RATHER THAN ONLY THOSE WHO CAN PAY THE THOUSANDS OF DOLLARS THAT THE AUCTIONED TICKET RIGHTS SOLD FOR MR SOLOT SAID THEY'RE NOT THE BEST SEATS BUT THEY'RE NOT THE WORST HE SAID THE UNIVERSITY WHOSE POLICY IS THAT TICKET RIGHTS ARE TRANSFERABLE ONLY IN CASES OF DEATH AND DIVORCE HASN'T DECIDED WHETHER TO CHALLENGE THE LOTTERY SAID JUDI KESSLER AN OFFICIAL WITH THE UNIVERSITY ATHLETIC DEPARTMENT THE UNIVERSITY OBJECTED UNSUCCESSFULLY TO THE AUCTIONS MORE THAN HALF OF THE ATTORNEYS IN KELLEY DRYE & WARREN'S WASHINGTON OFFICE ARE LEAVING TO JOIN BOSTON LAW FIRM PEABODY & BROWN THE 15 ATTORNEYS WHO INCLUDE SIX KELLEY DRYE PARTNERS WILL OPEN A WASHINGTON OFFICE FOR PEABODY & BROWN THE GROUP OF ATTORNEYS JOINED KELLEY DRYE IN 1989 WHEN THE NEW YORK LAW FIRM ABSORBED LANE & EDSON A WASHINGTON LAW FIRM THE ATTORNEYS LEAVING KELLEY DRYE LARGELY SPECIALIZE IN REAL ESTATE AND FEDERAL HOUSING LAW JOHN CALLAGY CHAIRMAN OF KELLEY DRYE SAID THE DEPARTING ATTORNEYS' FOCUS IS A BETTER FIT FOR PEABODY & BROWN WHICH ALSO HAS A LARGE REALESTATE AND HOUSING PRACTICE HE SAID THE MOVE LEAVES KELLEY DRYE'S WASHINGTON OFFICE WITH NINE ATTORNEYS WHO DEAL MAINLY WITH MERGERS AND SECURITIES LAW KELLEY DRYE HAS A TOTAL OF 380 LAWYERS BRUCE S LANE A FOUNDER OF LANE & EDSON WILL BE MANAGING PARTNER OF PEABODY & BROWN'S NEW WASHINGTON OFFICE THE WASHINGTON ADDITIONS GIVE PEABODY & BROWN A TOTAL OF 112 LAWYERS EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR A LOT OF TALK WSJ FEB 17 1993 9301200104 9302170126 930125 THE OUTLOOK HEALTH CARE A MAGIC ASTERISK BY ALAN MURRAY WASHINGTON SEARCHING FOR HUGE SPENDING CUTS TO TAME A SWELLING DEFICIT A DOZEN YEARS AGO RONALD REAGAN'S EVERRESOURCEFUL BUDGET DIRECTOR DAVID STOCKMAN INVENTED THE MAGIC ASTERISK IT WAS A 44 BILLION LINE IN THE BUDGET CALLED FUTURE SAVINGS TO BE IDENTIFIED THE SAVINGS WERE NEVER IDENTIFIED AND THE MAGIC ASTERISK WENT DOWN IN HISTORY AS ONE OF THE GIMMICKS THAT LED TO THE NATION'S FISCAL MESS TODAY PRESIDENT CLINTON FACES A SIMILAR DILEMMA HE HAS PROMISED TO CUT 145 BILLION FROM THE DEFICIT IN 1997 AND HIS BUDGET DIRECTOR LEON PANETTA PLEDGES TWOTHIRDS OF THOSE CUTS WILL COME FROM CUTS IN SPENDING BUT IN THE DESPERATE SEARCH FOR SAVINGS MR CLINTON IS ALSO EYEING A MAGIC ASTERISK OF HIS OWN HEALTHCARE REFORM ANY HEALTHCARE REFORM WORTHY OF THE NAME MUST DO TWO THINGS IT MUST SLOW THE SPIRALING OF HEALTHCARE COSTS AND IT MUST BEGIN TO PROVIDE COVERAGE TO THE 37 MILLION PEOPLE WHO ARE UNINSURED THE FIRST SAVES THE GOVERNMENT MONEY THE SECOND COSTS MONEY MOST HEALTHCARE ANALYSTS INCLUDING MR CLINTON'S BELIEVE THAT IN THE NEXT FIVE YEARS THE COSTS TO THE GOVERNMENT WILL FAR OUTSTRIP THE SAVINGS BUT THERE IS ONE VERY IMPORTANT PERSON WHO DISAGREES THE PRESIDENT OF THE UNITED STATES DURING THE CAMPAIGN MR CLINTON SAID REPEATEDLY THAT GETTING HEALTHCARE COSTS UNDER CONTROL IS CRUCIAL TO TAMING THE DEFICIT AND NOW THAT HE HAS ASSUMED THE OVAL OFFICE HE HAS DECIDED TO ACT ON HIS OWN RHETORIC AIDES SAY HE RECENTLY CHASTISED HEALTHCARE ADVISERS FOR TELLING HIM THEIR PLAN CAN'T BE MADE TO HELP REDUCE THE DEFICIT OVER THE NEXT FIVE YEARS MR CLINTON WAS RIGHT TO ARGUE IN THE CAMPAIGN THAT HEALTH CARE IS A CRITICAL PART OF THE LONGTERM DEFICIT PROBLEM EXPENDITURES ON THE MEDICARE PROGRAM FOR THE ELDERLY AND THE MEDICAID PROGRAM FOR THE POOR ARE GOBBLING UP FEDERAL DOLLARS AT AN ASTOUNDING RATE AND COULD BE THE SINGLE BIGGEST FEDERAL EXPENDITURE BIGGER THAN DEFENSE OR SOCIAL SECURITY BY THE END OF THE DECADE GETTING HEALTHCARE INFLATION UNDER CONTROL IS THUS CRITICAL TO GETTING THE DEFICIT UNDER CONTROL BUT IN THE SHORTTERM ANY SAVINGS WILL QUICKLY BE GOBBLED UP IN THE REFORM EFFORT WHILE FUNDAMENTAL HEALTHCARE REFORM IS A CRUCIAL COMPONENT OF ANY LONGRUN DEFICITREDUCTION EFFORT IT WILL NOT GENERATE ANY SAVINGS OVER THE NEXT FOUR OR FIVE YEARS SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE PART OF THE PROBLEM NOTES MR REISCHAUER IS THAT THE FEDERAL GOVERNMENT IS ALREADY PAYING LESS THAN FULL COST FOR HEALTH CARE MEDICARE FOR INSTANCE REIMBURSES HOSPITALS FOR ONLY ABOUT 90 OF THE COST OF CARING FOR A MEDICARE PATIENT AND MEDICAID REIMBURSES FOR ONLY ABOUT 80 OF COSTS PATIENTS WITH PRIVATE INSURANCE GET STUCK WITH THE TAB PAYING ABOUT 128 OF COST ANY REFORM PROGRAM SHOULD EVEN THAT BURDEN BUT THAT MEANS THE EARLY SAVINGS FROM COST CONTROL WILL GO TO THOSE WHO BUY PRIVATE INSURANCE THAT WILL BE GOOD FOR THE ECONOMY REDUCING THE HEALTHCARE COST BURDEN ON COMPANIES AND WORKERS BUT IT WON'T DO THE FEDERAL BUDGET ANY GOOD MR CLINTON SEEMS TO BE TAKING HIS CUES FROM HIS RHODES SCHOLAR COLLEAGUE AND LONGTIME FRIEND IRA MAGAZINER WHO HAS BEEN NAMED A SENIOR ADVISER IN THE WHITE HOUSE MR MAGAZINER WHO COULDN'T BE REACHED FOR COMMENT IS A HIGHPOWERED ANALYST WHO BELIEVES THE HEALTHCARE SYSTEM IS RIDDLED WITH SUCH MASSIVE INEFFICIENCIES THAT IT IS POSSIBLE TO SQUEEZE COSTS QUICKLY AND REAP BENEFITS FOR THE GOVERNMENT HE PARTICIPATED IN A STUDY IN HIS HOME STATE OF RHODE ISLAND THAT FOUND ONLY 50 CENTS OF EVERY DOLLAR SPENT ON HEALTH CARE WENT TO HEAL THE SICK THE REST WENT TO ADMINISTRATIVE COSTS BUT THE VIEW THAT HEALTH REFORM CAN CUT THE DEFICIT IN THE SHORT RUN DOESN'T SIT WELL WITH OTHER HEALTHCARE EXPERTS EVEN THOSE WHO WERE STRONG SUPPORTERS OF MR CLINTON CANUTE THOUGHT HE COULD HOLD BACK THE TIDES SAYS HENRY AARON OF THE BROOKINGS INSTITUTION A SOMETIME ADVISER TO THE CLINTON CAMP WHO CITED THE DANISH KING WHEN ASKED ABOUT MR MAGAZINER'S VIEWS INDEED MANY REFORM ADVOCATES SAY THE HEALTHCARE REFORM PLAN WILL HAVE TO SPEND BILLIONS OF DOLLARS IN THE SHORT RUN TO PROVIDE HEALTHCARE COVERAGE TO THE UNINSURED BEFORE SAVINGS KICKS IN DEMOCRATIC REP JIM COOPER OF TENNESSEE AN ADVOCATE OF THE MANAGEDCOMPETITION APPROACH THAT MR CLINTON FAVORS SAYS THE BILL HE'S SPONSORING IS ONE OF THE CHEAPEST BILLS AND IT STILL REQUIRES 30 BILLION A YEAR IN NEW REVENUE TO ENSURE THE REFORM PLAN MEETS HIS GOALS MR CLINTON HAS ASKED HIS WIFE TO HEAD UP THE WHITE HOUSE EFFORT DRAWING UP THE PLAN AND MR MAGAZINER TO SERVE AS CHIEF ADVISER IF HE WANTS THEM TO PRODUCE A PLAN THAT CLAIMS TO SAVE TENS OF BILLIONS OF DOLLARS OVER THE NEXT FIVE YEARS NO DOUBT THEY WILL BUT THERE ARE TWO GRAVE DANGERS FIRST THE RESULT COULD BE BAD HEALTHCARE POLICY CREATING AN EFFECTIVE SYSTEM OF MANAGED COMPETITION IN THE US HEALTHCARE INDUSTRY IS A TASK ON A PAR WITH MAKING CAPITALIST ECONOMIES OUT OF THE FORMERLY SOCIALIST COUNTRIES OF EASTERN EUROPE IF THE GOVERNMENT DEMANDS RESULTS TOO QUICKLY IT MAY ENSURE THE FAILURE OF REFORM SECOND BY CLAIMING SAVINGS FOR HEALTHCARE REFORM OVER THE NEXT FIVE YEARS MR CLINTON MAY BE TRYING TO AVOID MAKING THE TOUGH BUDGET DECISIONS NEEDED TO GET THE DEFICIT UNDER CONTROL IF THAT HAPPENS HEALTHCARE REFORM WILL BECOME THIS YEAR'S MAGIC ASTERISK PROMISING SAVINGS THAT NEVER MATERIALIZE SEE RELATED LETTER LETTERS TO THE EDITOR CANUTE WAS WASHOUT AS A DIVINE MONARCH WSJ FEB 17 1993 9301250024 9302170123 930106 CREATIVE DESTRUCTION AT IBM BY MARK STAHLMAN THE NEWS IS FILLED WITH LAMENTS OVER IBM'S LATEST ROUND OF TROUBLE ANOTHER MASSIVE WRITEOFF 25000 MORE IN STAFF CUTS MORE PLANTS TO BE CLOSED AN UNPRECEDENTED REDUCTION IN R&D SPENDING AND A THREATENED CUT IN ITS HITHERTO SACROSANCT DIVIDEND ONE WONDERS WHY THESE EVENTS SEEM SO SURPRISING AND EVEN SO TERRIFYING TO SO MANY PEOPLE WHO DON'T OWN THE STOCK AND DON'T COLLECT A BIG BLUE STIPEND DO THEY ASSUME THAT WITH IBM IN TROUBLE THERE'S NO SURE THING NO PLACE TO HIDE IBM HAS BEEN UNFAIRLY BURDENED WITH EXCESSIVE PRAISE FROM DECADES OF EXCELLENCE SEEKERS AND WITH THE OVERHEATED SCORN OF TODAY'S SCAVENGERCRITICS WHAT HAS HAPPENED TO IBM HOWEVER IS NATURAL AND PREDICTABLE INDEED IT WILL HAPPEN TO SCORES OF OTHER COMPANIES IT IS NOTHING LESS THAN THE MARKETPLACE AT WORK EXTRAORDINARY MANAGEMENT FAILURE FORECASTING IBM'S DOOM HAS BECOME A THRIVING BUSINESS OVER THE PAST FEW YEARS BUT THE EXTRAORDINARY MANAGEMENT FAILURE THAT LED TO THE COMPANY'S WELLPUBLICIZED TROUBLES HAS NEVER BEEN ADEQUATELY EXPLAINED PUT SIMPLY IBM HAS FAILED BECAUSE THE COMPANY'S SENIOR MANAGERS HAVE MISUNDERSTOOD THE COMPETITIVE DYNAMICS OF THE COMPUTER MARKETPLACE WE ALL KNOW THAT THE COMPETITION HAS BEEN KILLING IBM BUT THIS IS NOT THE KIND OF COMPETITION THAT MOST FREQUENTLY COMES TO MIND THE HOLLYWOOD STYLE TECHNOLOGY SHOOTOUT AT HIGH NOON NO COMPETITION IN COMPUTERS IS ULTIMATELY DRIVEN BY IDEAS NOT TECHNOLOGY IDEAS COME TO LIFE IN THE FORM OF BUSINESS MODELS AND ULTIMATELY BECOME THE SOUL OF THE ENTERPRISE WHAT PETER DRUCKER HAS CALLED THE THEORY OF THE BUSINESS IN COMPUTERS AS IN MOST BUSINESSES THE WINNING INNOVATION IS BUSINESS INNOVATION NOT TECHNOLOGY INNOVATION THE MARKETPLACE REWARDS THE RIGHT IDEA IN THE 1960S IBM HAD THE RIGHT IDEA AND WITH IT INVENTED THE MAINFRAME INDUSTRY IN THE PROCESS IBM TOTALLY TRANSFORMED ITSELF FROM A BUSINESS MACHINE COMPANY TABULATORS CARD PUNCHES AND ACCOUNTING MACHINES INTO A COMPUTER COMPANY IBM'S FOUNDING EXECUTIVE THOMAS WATSON SR SAW THESE CHANGES IN SWEEPING TERMS HE BELIEVED THAT STORED PROGRAM CONTROL AND LARGE MACHINE MEMORIES WOULD REQUIRE A COMPLETELY NEW KIND OF COMPANY AND SIMULTANEOUSLY WOULD RELEGATE THE OLD KIND OF COMPANY TO THE SIDELINES OF COURSE HE WAS RIGHT BUT BY THE MID1970S IBM'S IDEA HAD ALREADY REACHED ITS PRACTICAL LIMITS AND NEW IDEAS DEVELOPED AND NURTURED BY OUTSIDERS EXPLODED IN A FLURRY OF STARTUPS TO BECOME THE MINICOMPUTER INDUSTRY WHILE MINIS DIDN'T REPLACE MAINFRAMES THEY DID DO SOMETHING FAR MORE IMPORTANT THEY DEFINED AND ADDRESSED AN ENTIRELY NEW MARKETPLACE FROM THE SIDELINES IBM WATCHED AS SCORES OF BOLD NEW COMPETITORS STAKED OUT NEW TERRITORY PLAYED BY NEW RULES AND IN THE PROCESS INVENTED A NEW INDUSTRY OVER AND OVER THIS CYCLE OF INDUSTRY CREATION AND DECLINE HAS REPEATED ITSELF BY THE EARLY 1980S MINICOMPUTERS TOO HAD REACHED THEIR LIMITS NOW IT WAS THE PERSONAL COMPUTER'S TURN TO TAKE THE FIELD AND THE MINICOMPUTER COMPANIES HAD TO WATCH FROM THE BLEACHERS AS A NEW GROUP OF OUTSIDERS GOT TO WORK DEFINING ANOTHER NEW INDUSTRY SERVING MARKETPLACE NEEDS UNTOUCHED BY EARLIER INDUSTRIES FOR A WHILE IT LOOKED AS IF IBM MIGHT BE BACK IN THE LEAD THROUGH A UNIQUE COMBINATION OF EVENTS IBM HIT UPON THE CORRECT NEW IDEA USING OUTSIDE INDEPENDENT TECHNOLOGY SOURCES LIKE INTEL AND MICROSOFT INSTEAD OF INTERNAL R&D EFFORTS AND INDIRECT DISTRIBUTION CHANNELS LIKE COMPUTERLAND INSTEAD OF A CAPTIVE SALES FORCE TO BE SURE IBM DIDN'T KNOW HOW POWERFUL THIS IDEA WOULD BECOME SINCE ITS FIRST MARKET FORECAST WAS FOR ONLY 200000 PCS TO BE SOLD EVER NOW NEARLY TWICE THAT MANY SELL EVERY WEEK BUT IBM SACRIFICED THIS LEAD BY SUFFOCATING ITS INFANT PC UNIT WITH A DEVASTATING RETURN TO THE OLD RULES THE MAINFRAME RULES IN 1985 IBM IMPOSED AN UMBRELLA SOFTWARE STRATEGY CALLED SYSTEMS APPLICATION ARCHITECTURE SAA ON ALL ITS BUSINESS UNITS SAA ISN'T ONE PRODUCT IT'S HUNDREDS OF PRODUCTS INTENDED TO MAKE THE VARIOUS INCOMPATIBLE IBM COMPUTER FAMILIES ALL APPEAR TO WORK THE SAME WAY BY ADDING AN EXTRA SOFTWARE LAYER ON TOP OF THE ORIGINAL DESIGN WHILE THIS GOAL MAY SOUND GOOD ON PAPER THE SAA STRATEGY KILLED ANY CAPACITY WITHIN IBM TO FOSTER INDEPENDENT BUSINESS MODELS AIMED AT SEPARATE UNIQUE COMPUTER INDUSTRIES PROPRIETARY MAINFRAMEBASED AND HOPELESSLY COMPLEX SAA IS THE DISTILLATION OF EVERYTHING THAT IS STILL WRONG WITH IBM SAA ROBBED IBM'S PC UNIT OF ITS PRECIOUS INDEPENDENCE AND FORCED IBM INTO THE POSITION OF FOLLOWER WHILE THE PC INDUSTRY GREW BY LEAPS AND BOUNDS IN THE END IBM FAILED BECAUSE THE COMPANY WAS ORGANIZED AROUND THE WRONG BUSINESS IDEA IBM'S IDEA OF ONE COMPUTER INDUSTRY WITH ONE SET OF BUSINESS PRACTICES ONE SET OF MANAGEMENT PRINCIPLES AND ONE UNIFIED ENTERPRISEWIDE COMPUTER SOLUTION IE SAA HAS DOOMED THE COMPANY TO LOSE THE BATTLE FOR MARKET LEADERSHIP IBM WAS WRONG THERE ISN'T JUST ONE COMPUTER INDUSTRY THERE ARE MANY ALTHOUGH EACH IS BASED ON THE SAME RAPIDLY EVOLVING TECHNOLOGY EACH IS RADICALLY DIFFERENT IN BASIC ECONOMIC STRUCTURE REQUIRING A DIFFERENT BUSINESS MODEL IN THE COMPUTER BUSINESS A SUCCESSFUL BUSINESS MODEL MUST PROVIDE THE RIGHT ANSWERS TO A KEY SET OF QUESTIONS NOT ONLY WHAT IS THE PRODUCT AND HOW IS IT TO BE USED HOW MUCH WILL IT COST AND HOW IS IT TO BE SOLD BUT ALSO WHO ORIGINATES THE CORE TECHNOLOGIES WHO DESIGNS AND BUILDS THE FINAL SYSTEM WHO PROVIDES THE SOFTWARE WHO SUPPORTS THE PRODUCT ONCE INSTALLED SHOULD A COMPUTER VENDOR BE COMPLETELY VERTICALLY INTEGRATED YES IF IT'S MAINFRAMES NO IF IT'S PCS SHOULD THE APPLICATION SOFTWARE BE SHRINKWRAPPED ONESIZEFITSALL OR HIGHLY CUSTOMIZED PCS NEED SHRINKWRAP OTHERS NEED VARIOUS DEGREES OF CUSTOMIZATION SHOULD THERE BE A STANDARD TECHNICAL ARCHITECTURE IN COMMON ACROSS ALL VENDORS YES IN THE CASE OF PCS NO IN THE WORKSTATION INDUSTRY LIFE AFTER IBM IT IS BECAUSE THE CHARACTERISTIC BUSINESS MODEL IS SO DIFFERENT IN EACH INDUSTRY THAT NO LEADING COMPUTER COMPANY HAS EVER BEEN ABLE TO ACHIEVE SUCCESS IN MORE THAN ONE OF THESE INDUSTRIES NOT INTEL NOT MICROSOFT NOT APPLE NOT SUN NOT HEWLETTPACKARD AND NOT IBM THERE ISN'T A SINGLE EXAMPLE OF CROSSINDUSTRY SUCCESS AMONG THE MAJOR COMPUTER VENDORS AND THERE ISN'T LIKELY TO BE ONE IS THERE LIFE AFTER IBM OF COURSE THERE IS COMPUTER TECHNOLOGY AND COMPUTERBASED BUSINESS INNOVATION HAVE MANY MORE DECADES OF OPPORTUNITIES AND MANY MORE COMPUTERBASED INDUSTRIES AHEAD FOR EVERY MAJOR DISAPPOINTMENT LIKE IBM THERE ARE DOZENS OF VITAL EXCITING NEW BUSINESSES EXPLORING NEW MARKETS OVERALL MANY THOUSANDS OF JOBS AND MASSIVE WEALTH WILL CONTINUE TO BE CREATED CRY NOT FOR IBM THE MARKETPLACE WILL CONTINUE TO REWARD THE RIGHT IDEA MR STAHLMAN IS PRESIDENT OF NEW MEDIA ASSOCIATES INC A NEW YORKBASED MEDIA AND FINANCIAL SERVICES COMPANY SEE RELATED LETTER LETTERS TO THE EDITOR BIG BLUE NEEDS A COLOR CHANGE WSJ FEB 17 1993 9301060004 9302170012 930114 THE SALES FORCE WILL NEED TO HAVE THE BEST TEAM SPIRIT IN THE NATION BY STEPHEN PLAUCHE II STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THE POMPOM MOM WILL SOON HAVE THE PERFECT PLACE TO SHOP NATIONAL CHEERLEADING ASSOCIATION PLANS TO BUILD IN THE HOUSTON AREA WHAT IT CALLS THE NATION'S FIRST THREE CHEERLEADING STORES EACH OF THE 9000SQUAREFOOT NCA SUPER CENTERS WILL STOCK CHEERLEADINGRELATED MERCHANDISE AND OFFER CLASSES IN TUMBLING DANCE AND MORE CLOSE FOLLOWERS OF SUPERMARKET TABLOIDS AND MADEFORTV MOVIES WILL RECALL THE POMPOM MOM SAGA TO RATTLE HER DAUGHTER'S RIVAL FOR A SPOT ON A JUNIORHIGH CHEERLEADING SQUAD WANDA HOLLOWAY OF CHANNELVIEW TEXAS ALLEGEDLY HIRED SOMEONE TO MURDER THE OTHER GIRL'S MOTHER JUST BEFORE TRYOUTS MRS HOLLOWAY IS AWAITING A SECOND TRIAL A GUILTY VERDICT AT HER FIRST TRIAL IN 1991 WAS NULLIFIED WHEN A JUROR WAS FOUND TO HAVE BEEN INELIGIBLE TO SERVE IT MIGHT SEEM FITTING TO LOCATE THE CENTERS JUST A SOMERSAULT AWAY FROM CHANNELVIEW BUT THERE IS NO CONNECTION WHATSOEVER BETWEEN THE TWO SAYS MONTE L TINKHAM THE REALESTATE AGENT WHO LEASED THE STORE SITES TO NCA JEFF HENNINGSEN REGIONAL DIRECTOR FOR NCA SUPER CENTERS ALSO SAYS THE WANDA HOLLOWAY INCIDENT IN NO WAY PRECIPITATED THE COMING OF THESE STORES TO HOUSTON MR HENNINGSEN ADDS THESE CENTERS ARE BEING BUILT TO ACCOMMODATE THE LARGE GYMNASTICS FOLLOWING IN HOUSTON TO TRAIN CHEERLEADERS IN THE PROPER TECHNIQUES AND TO MAKE CHEERLEADING INTO MORE OF A COMPETITIVE SPORT AND OF COURSE TO ADD TO THE 45 MILLION A YEAR IN REVENUE THAT NCA ALREADY TAKES IN FROM CATALOG SALES AND SUMMER CHEERLEADING CAMPS THE COMPANY IS A UNIT OF NATIONAL SPIRIT GROUP LTD A DALLASBASED PARTNERSHIP GYMNASTICS IS A GROWING ELEMENT OF CHEERLEADING AND HOUSTON HAS BELA KAROLYI WHO COACHED NADIA COMANECI MARY LOU RETTON AND OTHER OLYMPIANS HE SET UP TRAINING FACILITIES HERE AFTER DEFECTING FROM ROMANIA IN 1981 NCA ALSO MUST HAVE NOTICED THE 300PLUS AREA HIGH SCHOOLS AND JUNIOR HIGHS EACH WITH SPORTS TEAMS AND CHEERLEADING SQUADS WHATEVER THE MOTIVATION HOUSTON'S CHEERLEADING COMMUNITY IS EXCITED ABOUT MEGASTORES FOR MEGAPHONES I COULD NOT IMAGINE HAVING IT SO NICE SAYS CELESTE HARPER CHEERLEADING ADVISER AT LEE HIGH SCHOOL JANA ARMSTEAD CHEERLEADING COACH AT STRATFORD HIGH SAYS I AM ALWAYS TRYING TO FIND KNOWLEDGEABLE INSTITUTIONS WHERE MY KIDS CAN GO AND LEARN THE PROPER TECHNIQUES SAFELY SEE RELATED LETTER LETTERS TO THE EDITOR OH SHOOT WSJ FEB 17 1993 9301140116 9302160211 930216 LETTERS TO THE EDITOR AN AWFUL PROBLEM GETS DREDGED UP YOUR JAN 25 EDITORIAL DIOXIN DESTROYS SHIPS ATTACKS THE ENVIRONMENTAL PROTECTION AGENCY FOR WITHDRAWING APPROVAL FROM A CORPS OF ENGINEERS PERMIT TO THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TO DREDGE IN NEWARK BAY YOUR READERS WOULD HAVE BENEFITED MORE FROM BEING PRESENTED WITH BOTH SIDES OF THIS ISSUE INSTEAD YOU'VE SUCCEEDED SIMPLY IN MUDDYING THE WATERS ON A DIFFICULT ISSUE THE PERMIT IN QUESTION WAS DEVELOPED AFTER CAREFUL TESTING AND ANALYSIS BY THE EPA THE CORPS AND THE PORT AUTHORITY THE APPLICANT AS WELL AS EXTENSIVE PUBLIC REVIEW ITS TERMS CAPPING THE DREDGE SPOIL WITH CLEAN FILL AFTER IT IS DUMPED WOULD WE BELIEVE HAVE ALLOWED THE DREDGING TO PROCEED WITHOUT UNDUE HARM TO THE ENVIRONMENT CONTRARY TO YOUR EDITORIAL PARTS PER TRILLION LEVELS OF DIOXIN ARE NOT TRIVIAL GIVEN ITS PROPENSITY TO BIOACCUMULATE IN THE FOOD CHAIN YOU FAIL TO MENTION THAT THE PERMIT ISSUED BY THE CORPS ON JAN 6 WOULD HAVE ALLOWED THE DUMPING OF 500000 CUBIC YARDS OF SPOIL TWOANDAHALF TIMES THE AMOUNT UPON WHICH OUR ANALYSIS AND THE PUBLIC COMMENT HAD BEEN BASED YOU ALSO FAIL TO MENTION THAT THIS CHANGE WAS BASED ON A LASTMINUTE REQUEST FROM THE PORT AUTHORITY THAT INCLUDED NO FACTUAL BASIS FOR THE ESTIMATE NEITHER THE EPA NOR THE PUBLIC WAS ADVISED OF THIS CHANGE SINCE THEN THE PORT AUTHORITY HAS QUOTED US VOLUME NUMBERS RANGING ALL OVER THE LOT YOU QUOTE PORT DIRECTOR LILLIAN LIBURDI AS SAYING THIS IS NOT AN ACCEPTABLE WAY TO DO BUSINESS I'LL SAY IT'S NOT WE RECOGNIZE THE NEED FOR A HEALTHY PORT ECONOMY IN THIS REGION HOWEVER THE EPA'S RESPONSIBILITY IS TO PROTECT PUBLIC HEALTH AND THE ENVIRONMENT WE CAN MAINTAIN OUR CREDIBILITY IN DOING SO ONLY IF WE BASE OUR ACTIONS ON CAREFUL ANALYSIS OF ACCURATE INFORMATION IF WE ACCEPTED WITHOUT QUESTION THIS LASTMINUTE CHANGE THAT CREDIBILITY WOULD VANISH RIGHT NOW WE ARE LOOKING AT ADDITIONAL DATA SUBMITTED TO US BY THE CORPS TO SEE WHAT THE ACTUAL VOLUME OF MATERIAL REALLY IS ANY DELAY THAT OCCURS IN THIS DREDGING PROJECT WILL RESULT FROM THE ELEVENTHHOUR CHANGE IN THE PERMIT THE EPA WILL CONTINUE TO WORK WITH ALL PARTIES TO BRING THIS ISSUE TO RAPID RESOLUTION YOUR EDITORIAL WAS ON THE MARK IN WARNING OF THE RISK OF ACTIONS LIKE THE EPA'S VETO OF A DREDGING PERMIT FOR SHIP BERTHS AT THE PORT OF NEW YORK AND NEW JERSEY AT A TIME WHEN THE NATION MUST LOOK ECONOMICALLY OUTWARD TO SURVIVE AND PROSPER THIS KIND OF GOVERNMENTAL MYOPIA THREATENS TO FORCE IT INTO AN ISOLATIONIST STRAITJACKET TOO MANY PEOPLE TODAY FAIL TO REALIZE THE IMPORTANCE OF SHIPS AND SEAPORTS THEY DON'T APPRECIATE THAT MOST OF THE NATION'S IMPORTS AND EXPORTS FROM AUTOMOBILES TO ORANGE JUICE TO CHILDREN'S TOYS TO STEEL IRON AND LUMBER MOVE BY SHIP AIRPLANES CARRY FAR LESS CHARGE MUCH MORE AND USE MORE ENERGY AND WITHOUT PORTS SHIPS CANNOT DISCHARGE OR PICK UP CARGO THE PORT OF NEW YORK AND NEW JERSEY IS RESPONSIBLE FOR 186000 JOBS AND NEARLY 20 BILLION IN ANNUAL ECONOMIC ACTIVITY AS THE SECONDLARGEST SEAPORT IN THE COUNTRY IT IS A MAJOR GATEWAY FOR US EXPORTS AND IMPORTS WE WANT IT TO CONTINUE IN THOSE ROLES NEITHER THE PORT AUTHORITY NOR THE MARITIME INDUSTRY ADVOCATES IGNORING THE ENVIRONMENT ON THE CONTRARY WE WANT TO PRESERVE IT THE PORT AUTHORITY IS COMMITTED TO HANDLING DREDGING SAFELY AND RESPONSIBLY IT IS PURSUING A PAINSTAKINGLY CAREFUL APPROACH AND SPENDING 3 MILLION ON MONITORING AND SAFEGUARDS SHIPS SEAPORTS AND THE ENVIRONMENT MUST COEXIST IF THIS NATION AND ITS PEOPLE ARE TO GAIN THE FULL BENEFITS OF EACH 9302160210 930216 INTERNATIONAL DAIMLERBENZ UNIT CLEARS UP DISPUTE IN BID FOR FOKKER BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL DEUTSCHE AEROSPACE AG LOOKS SET TO BECOME EUROPE'S LARGEST AIRCRAFT BUILDER AFTER CLEARING UP A DISPUTE WITH THE DUTCH GOVERNMENT IN THE GERMAN COMPANY'S BID TO ACQUIRE 51 OF FOKKER NV THE NEWS PUSHED UP FOKKER'S SHARES BY 17 TO 1230 GUILDERS 659 ON THE AMSTERDAM STOCK EXCHANGE DEUTSCHE AEROSPACE A UNIT OF DAIMLERBENZ AG YESTERDAY SENT A LETTER TO DUTCH ECONOMICS MINISTER KOOS ANDRIESSEN ATTEMPTING TO DISPEL FEARS ABOUT POSSIBLE DEMANDS FOR FUTURE GOVERNMENT FUNDING MR ANDRIESSEN OVER THE WEEKEND HAD REJECTED WHAT HE CALLED A REQUEST FOR A BLANK CHECK IN THE DEAL WITH MR ANDRIESSEN'S APPARENT ACCEPTANCE OF THE NEW TERMS ONLY TWO HURDLES REMAIN BEFORE THE DEAL BECOMES FINAL APPROVAL BY DIRECTORS OF BOTH COMPANIES IS EXPECTED TO COME IN THE NEXT THREE WEEKS THE EUROPEAN COMMUNITY COMMISSION MUST THEN REVIEW THE DEAL UNDER THE NEW TERMS OF THE DEAL DEUTSCHE AEROSPACE WOULD PAY A TOTAL OF ABOUT 697 MILLION GUILDERS 3737 MILLION FOR A 51 STAKE IN THE DUTCH AIRCRAFT MAKER THAT INCLUDES A PAYMENT OF 379 MILLION GUILDERS FOR 132 MILLION NEW SHARES PLUS 196 MILLION GUILDERS FOR 50 OF THE DUTCH GOVERNMENT'S 318 STAKE IN FOKKER OR ABOUT 53 MILLION SHARES DEUTSCHE AEROSPACE THEN WILL BUY OUT THE REST OF THE GOVERNMENT'S STAKE DURING THE NEXT THREE YEARS FOR 122 MILLION GUILDERS DEUTSCHE AEROSPACE ORIGINALLY AGREED LAST OCTOBER TO PAY 37 DUTCH GUILDERS PER SHARE FOR A 51 STAKE BUT AFTER DUE DILIGENCE THE GERMAN COMPANY SOUGHT TO RESTRUCTURE THE DEAL AT ABOUT 30 GUILDERS A SHARE 9302160209 930216 SEQUOIA SYSTEMS POSTS LOSS OF 196 MILLION FOR FISCAL 2ND PERIOD MARLBOROUGH MASS SEQUOIA SYSTEMS INC REPORTED A 196 MILLION LOSS FOR ITS FISCAL SECOND QUARTER AFTER A RESTRUCTURING CHARGE AND A 45 REVENUE DECLINE THE COMPUTER MAKER WHICH IS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION FOR OVERSTATING REVENUE IN THE PAST SAID IT HAS BEEN VERY DIFFICULT TO GENERATE NEW BUSINESS SINCE IT RESTATED ITS FISCAL 1992 EARNINGS SEVERAL TIMES LAST FALL AND BOTH ITS CHAIRMAN AND CHIEF FINANCIAL OFFICER RESIGNED SEQUOIA WHICH EARLIER ANNOUNCED IT WAS CONSIDERING A POSSIBLE SALE OF THE COMPANY SAID IT IS CURRENTLY MEETING WITH A NUMBER OF INTERESTED PARTIES THE COMPANY'S LOSS FOR THE QUARTER ENDED DEC 27 OF 196 MILLION OR 232 A SHARE INCLUDES A 152 MILLION CHARGE RELATED TO STAFF REDUCTIONS INVENTORY WRITEDOWNS AND THE CLOSING OF REGIONAL OFFICES AS REPORTED EARLIER SEQUOIA REDUCED ITS WORK FORCE 60 TO ABOUT 170 FROM 400 DURING THE QUARTER IN THE YEARAGO QUARTER THE COMPANY HAD NET INCOME OF 25 MILLION OR 29 CENTS A SHARE SEQUOIA SAID ITS REVENUE IN THE SECOND QUARTER SLUMPED TO 11 MILLION FROM 199 MILLION IN THE YEAREARLIER PERIOD SEQUOIA'S REVENUE DECLINED BECAUSE THERE WAS SOME CONCERN ABOUT OUR VIABILITY SAID JOHN MURZYCKI A SEQUOIA SPOKESMAN CUSTOMERS WANTED TO BE ASSURED THAT EQUIPMENT WILL CONTINUE TO BE SERVICED AND SUPPORTED IN THE FUTURE MR MURZYCKI SAID GENERATING SALES FOR ITS PRODUCTS WHICH COST BETWEEN 300000 TO 500000 IS STILL DIFFICULT AND THE COMPANY DOESN'T EXPECT TO RETURN TO PROFITABILITY IN FISCAL 1993 WE EXPECT REVENUES WILL BE IN THE 8 MILLION TO 10 MILLION RANGE FOR THE NEXT COUPLE OF QUARTERS HE SAID FOR THE SIX MONTHS SEQUOIA REPORTED A LOSS OF 288 MILLION OR 341 A SHARE AFTER THE CHARGE VERSUS NET INCOME OF 13 MILLION OR 14 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE DROPPED 34 TO 209 MILLION FROM 319 MILLION 9302160208 930216 ADVERTISING FIRST CASUALTY OF COKECAA IS AT MCCANN BY KEVIN GOLDMAN THE UNUSUAL ALLIANCE BETWEEN COCACOLA AND HOLLYWOOD POWER BROKER MICHAEL OVITZ'S CREATIVE ARTISTS AGENCY APPEARS TO HAVE CLAIMED ITS FIRST CASUALTY ON MADISON AVENUE GORDON BOWEN IS LEAVING MCCANNERICKSON LESS THAN 18 MONTHS AFTER HE JOINED THE INTERPUBLIC GROUP'S AD AGENCY AS A HIGHPROFILE AND HIGHLY PAID MR FIXIT FOR MCCANN'S COVETED COCACOLA ACCOUNT MR BOWEN'S DEPARTURE WHICH WASN'T PUBLICLY ANNOUNCED WAS EFFECTIVE FRIDAY JUST TWO DAYS AFTER COCACOLA UNVEILED A SERIES OF 24 COMMERCIALS PRODUCED BY CAA AT A NEWS CONFERENCE IN NEW YORK MCCANN PRODUCED TWO SPOTS ONLY ONE OF WHICH WILL ACTUALLY BE SHOWN ON THE AIR THE 42YEAROLD MR BOWEN DECLINED COMMENT AND MCCANN OFFICIALS COULDN'T BE REACHED FOR COMMENT MR BOWEN'S EXIT FROM MCCANN IS THE LATEST CHAPTER IN THE TUGOFWAR THAT STARTED IN SEPTEMBER 1991 WHEN COKE HIRED CAA AND PITTED THE GIANT TALENT AND MARKETING AGENCY AGAINST MCCANN WHICH HAS HAD THE COKE ACCOUNT SINCE 1955 MR BOWEN WAS HIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF CREATIVE OFFICER AT MCCANN NEW YORK AND CHIEF CREATIVE OFFICER FOR COCACOLA AT MCCANN WORLDWIDE MONTHS BEFORE ATLANTABASED COKE HIRED CAA LAST OCTOBER JUST 13 MONTHS AFTER MR BOWEN ACTUALLY BEGAN WORKING AT MCCANN HE WAS REMOVED FROM DAYTODAY MANAGEMENT RESPONSIBILITIES OF MCCANN'S CREATIVE DEPARTMENT AND GIVEN THE TITLE OF CREATIVE CONSULTANT ACCORDING TO ONE PERSON WITH KNOWLEDGE OF THE SITUATION MR BOWEN WAS HIRED TO HANDLE THE COKE ACCOUNT AND HELP TURN AROUND MCCANN'S TROUBLED RELATIONSHIP WITH THE SOFT DRINK GIANT ONCE IT BECAME CLEAR THAT MCCANN WOULD HAVE LITTLE CREATIVE INPUT IN THE ADS IT BECAME INCREASINGLY DIFFICULT FOR MR BOWEN TO JUSTIFY HIS ROLE AT MCCANN ACCORDING TO THE SOURCE MR BOWEN ACTUALLY LOBBIED FOR CAA AND MCCANN TO WORK TOGETHER CREATIVELY A NOTION THAT CAUSED HIM PROBLEMS INSIDE MCCANN MR BOWEN REPORTEDLY RECEIVED AT LEAST TWO JOB FEELERS FROM RIVAL AGENCIES AROUND CHRISTMAS IT IS UNCLEAR WHETHER THE OFFERS REMAIN OPEN THE LARGER QUESTION HOWEVER IS HOW AND IF MCCANN CAN SHORE UP ITS COKE CLASSIC BUSINESS WHICH IS ESTIMATED AT 600 MILLION WORLDWIDE MCCANN WHICH LAST WEEK SAID IT IS EXCITED BY WHAT AN AGENCY SPOKESMAN CHARACTERIZED AS ITS PARTNERSHIP WITH CAA WILL ALMOST CERTAINLY SHUFFLE IN ADDITIONAL CREATIVE EXECUTIVES ONE MAY BE A FAMILIAR FACE PAUL CAPPELLI A FORMER MCCANN EXECUTIVE AND FORMER DEPUTY CREATIVE DIRECTOR ON THE COKE ACCOUNT WHO JOINED SAATCHI & SAATCHI'S AC&R ADVERTISING LAST APRIL AFTER CLASHING WITH MR BOWEN MR CAPPELLI LEFT AC&R RECENTLY REACHED YESTERDAY MR CAPPELLI SAID I AM MORE THAN WILLING TO HELP MCCANN I HAVE ALWAYS ENJOYED BEING A COMBATANT IN THE COLA WARS AND I AM AVAILABLE A MAJORITY OF COKE'S CAACREATED ADS ARE SHOT IN A BOLD FRENETIC STYLE VERY UNLIKE THE SOFT DRINK MAKER'S PREVIOUS COMMERCIALS THEY APPEAL TO A MORE YOUTHFUL AUDIENCE CONTRASTING WITH THE WHOLESOME FAMILYORIENTED FOCUS OF PREVIOUS COMMERCIALS EXCEPT FOR ONE COMMERCIAL SHOT BY MOVIE DIRECTOR ROB REINER ABOUT A MARRIED COUPLE CELEBRATING THEIR 50TH ANNIVERSARY COKE CLEARLY IS AIMING FOR THE YOUNG AUDIENCE THAT RIVAL PEPSICO HAS COURTED MORE EFFECTIVELY IT IS THIS DIRECTION THAT APPEARS TO HAVE SEALED MR BOWEN'S FATE MR BOWEN IS KNOWN FOR ADS THAT ARE PRECISELY THE OPPOSITE OF THOSE COKE IS NOW EMBRACING AS SENIOR VICE PRESIDENT OF WPP GROUP'S OGILVY & MATHER MR BOWEN MADE HIS REPUTATION AS THE TOP CREATIVE GURU BEHIND THE SUCCESSFUL AND AWARD WINNING AMERICAN EXPRESS MEMBERSHIP HAS ITS PRIVILEGES CAMPAIGN THE WORK USED PORTRAIT PHOTOGRAPHS BY ANNIE LEIBOVITZ OF CELEBRITIES AND POLITICIANS RANGING FROM CANDICE BERGEN TO FORMER HOUSE SPEAKER TIP O'NEILL HE ALSO FAVORED STORYTELLING IN COMMERCIALS SUCH AS THE YOUNG COUPLE USING THEIR AMERICAN EXPRESS CARD ON A CARIBBEAN VACATION MR BOWEN REPORTEDLY WANTED COKE TO RETURN TO TOUCHYFEELY AD CAMPAIGNS THAT WOULD MIRROR THE COMPANY'S WELLRECEIVED ADS FROM THE 1970S THOSE FEATURED FOOTBALL STAR MEAN JOE GREEN TOSSING HIS SWEATY JERSEY TO AN ADORING YOUNG FAN BUT THAT IDEA WAS SHUNTED ASIDE IN FACT ALTHOUGH MCCANN CAME UP WITH COKE'S NEW SLOGAN ALWAYS IT CAME NOT FROM MR BOWEN BUT FROM JOHN BERGIN A RETIRED MCCANN VICE CHAIRMAN AND THE TWO ADS PRODUCED BY MCCANN ARE ANYTHING BUT WARM AND FUZZY THE ONE SPOT THAT MAY HAVE A BRIEF LIFE ON TELEVISION IS TITLED THERE WILL ALWAYS BE AND FEATURES SURF BOARDS STUCK IN SAND ON A BEACH ANOTHER IS TITLED MOTORMOUTH UPDATED AND INCLUDES A RAPIDLY TALKING ANNOUNCER SAYING THEY TELL YOU YOUR MUSIC IS TOO LOUD AND YOUR HAIR IS TOO WEIRD AND YOUR VOICE IS TOO HIGH AND YOUR GRADES ARE TOO LOW AND YOU CAN'T TELL YOUR HEAD FROM YOUR TAIL KICK BACK AND ENJOY A COKE MR BOWEN ACCORDING TO INDUSTRY OFFICIALS DIDN'T HAVE ANYTHING TO DO WITH THE TWO MCCANNPRODUCED COKE SPOTS NUTRI/SYSTEM NUTRI/SYSTEM INC MOVED ITS 20 MILLION NATIONAL MEDIA ASSIGNMENT BACK TO ERIC MOWER AND ASSOCIATES SYRACUSE NY FROM FOOTE CONE & BELDING/LGK PHILADELPHIA WHO'S NEWS NANCY W SMITH EXECUTIVE VICE PRESIDENT AND DIRECTOR OF PRINT MEDIA AT YOUNG & RUBICAM NEW YORK WAS HIRED AS GROUP PUBLISHER AT THE PARENTING GROUP THE PUBLISHER OF PARENTING AND BABY TALK MAGAZINES THE PARENTING GROUP IS A UNIT OF TIMEWARNER INC'S TIME INC VENTURES ACCOUNT HILLSIDE BEDDING INC THE BRONXBASED RETAIL CHAIN TAPPED SAATCHI & SAATCHI'S AC&R ADVERTISING NEW YORK FOR AN ASSIGNMENT INCLUDING STORE REDESIGN AND AN AD CAMPAIGN SLATED FOR FALL HILLSIDE SPENT 3 MILLION IN ADVERTISING IN 1991 ACCORDING TO LEADING NATIONAL ADVERTISERS 9302160207 930216 POLITICS & POLICY PEROT'S REACTION WILL PLAY A KEY PART IN HOW CLINTON'S PACKAGE IS RECEIVED BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN PRESIDENT CLINTON PRESENTS HIS EAGERLY ANTICIPATED ECONOMIC PACKAGE TOMORROW NIGHT THE TELEVISION LINEUP WILL LOOK LIKE THIS FIRST MR CLINTON THEN HOUSE MINORITY LEADER BOB MICHEL DELIVERING THE REPUBLICAN RESPONSE THEN BATTING CLEANUP THE IRREPRESSIBLE ROSS PEROT WHO WILL APPEAR ON ABCTV'S NIGHTLINE TO RENDER JUDGMENT OF ALL THE INSTANT REACTION THERE WILL BE NONE MORE IMPORTANT TO THE CLINTON WHITE HOUSE THAN THAT OF MR PEROT WHO IS IN THE MIDST OF A FULLSCALE PUBLIC REEMERGENCE DURING HIS INDEPENDENT PRESIDENTIAL CAMPAIGN THAT WON 19 OF THE VOTE LAST YEAR THE WEALTHY BUSINESSMAN BECAME THE SULTAN OF SACRIFICE PREACHING IN HIS HOMESPUN HOMILIES THE NEED FOR EVERYONE TO CHIP IN TO TACKLE THE DEFICIT NOW MR PEROT'S BAND OF SKEPTICAL SHOCK TROOPS WILL BE WAITING FOR HIS JUDGMENT ABOUT WHETHER THE CLINTON PLAN IS CREDIBLE AND FAIR IF THE PRESIDENT INTENDS TO CONVINCE AMERICANS THAT ALL MUST SACRIFICE A LITTLE TO CONQUER THE NATIONAL DEBT THERE WILL BE NO MORE IMPORTANT SECONDING VOICE THAN MR PEROT'S A PEROT STAMP OF APPROVAL WON'T BE ENOUGH TO WIN THE CLINTON PLAN UNIVERSAL ACCLAIM BUT A PEROT ATTACK COULD UNDERMINE THE GRASSROOTS SUPPORT SO VITAL TO THE CLINTON TEAM'S HOPE OF PASSING ITS PLAN IF FOR SOME REASON THE PLAN IS MARGINAL AND ROSS PEROT IS NEGATIVE THAT IS VERY BAD SAYS JOHN WHITE THE AUTHOR OF MR PEROT'S ECONOMIC PLAN LAST YEAR WHO NOW IS AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT IF HE'S POSITIVE THAT'S NICE AND HELPFUL BUT IF HE'S NEGATIVE THAT'S MUCH WORSE A NOD OF APPROVAL FROM MR PEROT IS PARTICULARLY IMPORTANT FOR THE WHITE HOUSE BECAUSE SOME POLLS ALREADY INDICATE THAT PEROT VOTERS ARE GROWING SKEPTICAL MORE QUICKLY THAN OTHERS ABOUT WHETHER MR CLINTON WILL TRULY CHANGE WASHINGTON IT'S OBVIOUS THAT CLINTON HAS DONE NOTHING TO CAPTURE THESE VOTERS MAINTAINS NEIL NEWHOUSE A REPUBLICAN POLLSTER CLINTON AIDES ARE AWARE OF THE PEROT SHADOW LOOMING OVER THEIR SHOULDERS IF THEY NEEDED A REMINDER IT CAME WHEN THE FIRST QUESTIONER TO CONFRONT THE PRESIDENT AT LAST WEEK'S TOWN HALL MEETING IN DETROIT WAS MR PEROT'S MICHIGAN COORDINATOR WHO PRESSED MR CLINTON TO SUPPORT A BALANCEDBUDGET AMENDMENT HE DECLINED TO DO SO BUT AS HAS ALWAYS BEEN THE CASE WITH MR PEROT NO ONE IN POWER SEEMS SURE PRECISELY HOW TO HANDLE HIM WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID YESTERDAY THAT ADMINISTRATION OFFICIALS MIGHT LOOK FOR AN EARLY OPPORTUNITY TO MEET WITH MR PEROT AND EXPLAIN THE ECONOMIC PLAN TO HIM BUT A WHITE HOUSE OFFICIAL SAYS THERE HASN'T BEEN ANY FORMAL COMMUNICATION YET HOWEVER MR PEROT WON'T BE WAITING FOR A WHITE HOUSE INVITATION TO GET IN HIS TWO CENTS' WORTH AFTER FADING FROM VIEW AFTER THE NOVEMBER ELECTION HE IS IN THE OPENING STAGES OF A MULTIMEDIA RETURN ENGAGEMENT THAT GUARANTEES HE WILL BE MAKING HIS VIEWS ON CLINTON POLICIES FELT HIS MAIN VEHICLE IS HIS NEW POLITICAL ORGANIZATION UNITED WE STAND AMERICA INC THE TEXAS BILLIONAIRE IS USING EVERY OPPORTUNITY TO ASK AVERAGE AMERICANS TO SEND IN 15 TO JOIN UP HE PROMISES THE MONEY WILL BE USED TO KEEP YOU INFORMED ABOUT THE CRITICAL ISSUES FACING THIS COUNTRY AND TO CREATE HIS OFTDISCUSSED ELECTRONIC TOWN HALL A SYSTEM FOR HOLDING NATIONAL TELEVISED MEETINGS TO CANVASS OPINIONS ON CURRENT AFFAIRS SHARON HOLMAN MR PEROT'S SPOKESWOMAN SAYS HE HAS SO FAR FILMED 22 NEW ONEMINUTE TELEVISION COMMERCIALS EACH OF WHICH FOCUSES ON A NATIONAL PROBLEM AND THEN ASKS VIEWERS TO JOIN HIS ORGANIZATION TO HELP SOLVE IT MR PEROT WROTE THE TELEVISION SPOTS HIMSELF AND THEY'RE ALL ROSS PEROT SITTING AT THAT SAME DESK HE USED FOR HIS WIDELY WATCHED PAID CAMPAIGN PROGRAMS MS HOLMAN SAYS THE COMMERCIALS HAVE BEGUN APPEARING ON CABLE NEWS NETWORK AND ONE HAS EVEN AIRED ON THE MTV ROCK MUSIC NETWORK IN ADDITION MR PEROT HAS STARTED HOLDING RALLIES AROUND THE COUNTRY AN EFFORT THAT BEGAN WITH THREE EVENTS IN MAINE THIS MONTH HE HAS BEEN RUNNING NEWSPAPER ADS URGING PEOPLE TO SIGN UP FOR UNITED WE STAND AMERICA PROCLAIMING THAT TOGETHER WE CAN RECLAIM OUR ROLE AS OWNERS OF AMERICA MR PEROT ALSO APPEARED WITH JAY LENO ON THE TONIGHT SHOW LAST WEEK TRADING QUIPS AND TRYING HARD TO PLUG THE TOLLFREE TELEPHONE NUMBER PEOPLE CAN CALL TO JOIN HIS ORGANIZATION MR PEROT'S EFFORTS BECAME ALMOST COMICAL AS HE TRIED TO GET MR LENO TO DISPLAY A COFFEE CUP AND A SIGN WITH THE NUMBER THEN TRIED SEVERAL TIMES TO ANNOUNCE THE NUMBER ALOUD MR LENO APPARENTLY INTENT ON PREVENTING HIS SHOW FROM BECOMING A PEROT FUNDRAISER CUT OFF EACH EFFORT MS HOLMAN WON'T DIVULGE HOW MANY AMERICANS HAVE SIGNED UP AND SENT IN THEIR 15 BUT SAYS THE RESPONSE TO MR PEROT'S ADS HAS BEEN HUGE EVEN AS THE WHITE HOUSE PONDERS HOW TO STEER MR PEROT AND HIS TROOPS IN ITS DIRECTION SOME REPUBLICANS ARE MOVING TO WOO THEM SENATE REPUBLICAN LEADER ROBERT DOLE HAS MET MR PEROT ONCE SINCE THE ELECTION TEXAS SEN PHIL GRAMM A LIKELY REPUBLICAN PRESIDENTIAL CONTENDER IN 1996 IS ACTIVELY SEEKING MR PEROT'S SUPPORT FOR A BALANCEDBUDGET AMENDMENT THE SENATOR PLANS TO OFFER IN LATE MARCH OR EARLY APRIL WHEN A BILL TO INCREASE THE NATIONAL DEBT CEILING WILL BE INTRODUCED HE AND I HAVE MET ON THIS WE HAVE TALKED ABOUT IT SEN GRAMM SAYS HE HAS TOLD ME HE IS GOING TO SUPPORT THE EFFORT TO PASS A BALANCEDBUDGET AMENDMENT DEFICITCUTTING IS AN ISSUE WHERE MR PEROT HAS CREDIBILITY AND HIS SUPPORT IN ACTIVATING GRASSROOTS AMERICA COULD BE THE DIFFERENCE BETWEEN WINNING AND LOSING ON THIS ISSUE AS FOR PRESIDENT CLINTON SEN GRAMM SAYS I DON'T KNOW TO WHAT EXTENT HE HAS REACHED OUT TO ROSS BUT I CAN TELL YOU I HAVE THE DEFICIT ISN'T A PARTISAN ISSUE IT IS CLEARLY AN ISSUE WHERE ROSS PEROT HAS CREDIBILITY AND WHERE HE COULD BE A KEY PLAYER AND SHOULD BE 9302160206 930216 DANISH INSURER SEEKS THREEMONTH DELAY IN PAYING CREDITORS STOCKHOLM HAFNIA HOLDING AS DENMARK'S SECONDLARGEST INSURER SAID IT HAD APPLIED TO A DANISH COURT TO EXTEND ITS SUSPENSION OF PAYMENTS TO CREDITORS FOR THREE MONTHS TO MAY 19 HAFNIA ADDED THAT THE DEADLINE FOR BIDS FOR THE GROUP WOULD NOT BE EXTENDED BEYOND FEB 19 THE GROUP SAID IT NEEDED THE EXTENSION OF ITS INSOLVENT STATUS AS SALES TERMS WEREN'T EXPECTED TO BE SETTLED UNTIL THE END OF MARCH IT GAVE NO INDICATION WHO THE BUYER OR BUYERS WILL BE HAFNIA HOLDING SUSPENDED PAYMENTS TO CREDITORS LAST AUGUST WITH OPERATIONS CONTINUING UNDER COURT ADMINISTRATORS IN A NEW COMPANY HAFNIA HOLDING OF 1992 A/S ALL ASSETS WERE TRANSFERRED TO THE NEW COMPANY WHILE ABOUT SIX BILLION KRONER 803 MILLION IN DEBTS REMAINED IN THE OLD HAFNIA HOLDING ALTHOUGH HAFNIA'S CORE INSURANCE OPERATIONS REMAINED PROFITABLE COSTS INCURRED THROUGH BUILDING STAKES IN TWO COMPETING INSURANCE GROUPS DENMARK'S BALTICA HOLDING A/S AND SWEDEN'S SKANDIA GROUP FOERSAEKRINGS AB DROVE HAFNIA TO INSOLVENCY SPECULATION ON POTENTIAL BUYERS FOR ALL OR PART OF HAFNIA HAS INCLUDED FRANCE'S CREDIT LYONNAIS AND UNION DES AUSSURANCES GERMANY'S ALLIANZ AG BRITAIN'S SUN ALLIANCE PLC AND SWEDEN'S SKANDIA SAID DEALERS HAFNIA WHICH HAS DECLINED COMMENT ON THE SPECULATION HAS SAID PROCEEDS FROM THE SALE OF ANY OF ITS ASSETS WOULD BE USED TO PAY CREDITORS HAFNIA ALSO SAID IT HOLDS A 151 STAKE IN SKANDIA NOT THE 148 STAKE REPORTED EARLIER THE GROUP HASN'T ACQUIRED ANY ADDITIONAL SHARES IN THE SWEDISH INSURER BUT SOME OF HAFNIA'S EXISTING HOLDINGS HAD BEEN REGISTERED UNDER AN INCORRECT CODE WITH THE COPENHAGEN STOCK EXCHANGE IT SAID HAFNIA AND NORWEGIAN INSURER UNI STOREBRAND ATTEMPTED A HOSTILE TAKEOVER OF SKANDIA THAT CAUSED THE DOWNFALL OF BOTH HAFNIA AND UNI DEALERS SAID THE NORWEGIAN GROUP THE COUNTRY'S LARGEST INSURER HAS ALSO FALLEN UNDER PUBLIC ADMINISTRATION AFTER DECLARING INSOLVENCY 9302160205 930216 FIRST COMMERCIAL BUYS 2 BANKS LITTLE ROCK ARK FIRST COMMERCIAL CORP SAID IT HAS COMPLETED ITS ACQUISITION OF BANKS IN TYLER AND LUFKIN TEXAS FROM THE FEDERAL DEPOSIT INSURANCE CORP APPROXIMATE TOTAL ASSETS FOR THE TWO BANKS ARE 146 MILLION FOR LUFKIN AND 243 MILLION FOR TYLER 9302160204 930216 WHO'S NEWS SIZZLER SAYS DUNCAN RESIGNS FROM POSTS LOS ANGELES SIZZLER INTERNATIONAL INC SAID J HUGH DUNCAN 48 YEARS OLD RESIGNED AS CHIEF OPERATING OFFICER OF SIZZLER INTERNATIONAL AND PRESIDENT OF SIZZLER USA EFFECTIVE FRIDAY HIS DUTIES WILL BE ASSUMED BY RICHARD P BERMINGHAM PRESIDENT AND CHIEF EXECUTIVE OF SIZZLER INTERNATIONAL IN A STATEMENT THE COMPANY SAID MR DUNCAN HAD JOINED THE COMPANY WITH THE EXPECTATION THAT HE WOULD BE NAMED PRESIDENT AND BECAUSE OF PHILOSOPHICAL DIFFERENCES HE DOES NOT FEEL THIS WILL BE THE CASE MR DUNCAN WHO HAD HELD HIS POSTS SINCE LAST FEBRUARY DIDN'T RETURN A TELEPHONE CALL TO HIS OFFICE ALSO WAYNE F MCDANIEL 46 WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS OF THE RESTAURANT COMPANY PREVIOUSLY HE HAD SERVED AS REGIONAL VICE PRESIDENT THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING FRIDAY WHERE SIZZLER'S SHARES WERE QUOTED AT 1025 UNCHANGED IN NEW YORK STOCK EXCHANGE TRADING 9302160203 930216 MBCARADON TO ASK HOLDERS TO CLEAR SALE OF FRENCH FIRM STAKE SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH BUILDINGPRODUCTS AND PRINTING GROUP MBCARADON PLC CALLED AN EXTRAORDINARY SHAREHOLDER MEETING FOR MARCH 4 TO ASK PERMISSION TO SELL ITS 253 STAKE IN FRENCH PACKAGING COMPANY CARNAUDMETALBOX MBCARADON SAID THE MARKET VALUE OF ITS STAKE IN CARNAUDMETALBOX WAS ABOUT 515 MILLION 7303 MILLION THE INVESTMENT IS CARRIED ON MBCARADON'S BALANCE SHEET AT 3375 MILLION SO THE GROUP COULD REALIZE A 1775 MILLION PROFIT ON THE SALE MBCARADON SAID IT SAW STRONG RATIONALE FOR SELLING THE HOLDING BUT SAID IT WOULD ONLY DO SO SHOULD A SUITABLE OPPORTUNITY ARISE FOLLOWING MBCARADON'S ANNOUNCEMENT THE PARIS BOURSE SUSPENDED TRADING IN THE SHARES AND BONDS OF CARNAUDMETALBOX SA SEPARATELY CARNAUDMETALBOX SAID CONSOLIDATED REVENUE FELL 26 IN 1992 TO 2483 BILLION FRENCH FRANCS 443 BILLION FROM 2550 BILLION FRANCS A YEAR BEFORE BECAUSE OF NEGATIVE CURRENCY MOVEMENTS MBCARADON'S MANAGEMENT PARTNER IN CARNAUDMETALBOX IS CIE GENERALE D'INDUSTRIE & DE PARTICIPATIONS A HOLDING COMPANY WITH A STAKE SIMILAR TO MBCARADON'S EXPLAINING ITS DECISION TO SEEK TO SELL ITS STAKE MBCARADON SAID MANY CHANGES HAVE TAKEN PLACE SINCE THE PRESENT CARNAUDMETALBOX WAS FORMED IN APRIL 1989 WITH THE MERGER OF METALBOX PACKAGING AND CARNAUD SA MBCARADON NOTED IT HADN'T AT THAT TIME ASSUMED ITS PRESENT SHARE WITH THE COMBINATION OF MB GROUP PLC AND CARADON PLC AND THE MANAGEMENT CHANGES THAT FOLLOWED MBCARADON SAID IT WOULD REPORT ITS 1992 EARNINGS ON APRIL 5 IT SAID THE SECOND HALF OF THE YEAR WAS LARGELY AS EXPECTED LOOKING AHEAD THE GROUP SAID ITS CONTINENTAL EUROPEAN MARKETS APPEAR LESS BUOYANT IN 1993 THAN IN 1992 BUT THE US AND UK LOOK SET TO IMPROVE 9302160202 930216 FEELING FOILED BY THE FOIL FIRM SHE IS RECYCLING HER ARGUMENTS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL GERALDINE DAVIS CLAIMS SHE HAS BEEN FOILED BY BIG BUSINESS REYNOLDS METALS CO THE BIG BUSINESS IN QUESTION SAYS IT'S GETTING A BAD RAP THE FLAP IS ABOUT WRAP SPECIFICALLY ABOUT WHO INVENTED REYNOLDS WRAP'S FOILRECYCLING PROGRAM REYNOLDS SAYS ITS PUBLICRELATIONS STAFF CAME UP WITH THE PROGRAM WHICH PAYS SCHOOLS WHOSE STUDENTS ROLL UP GIANT WADS OF USED ALUMINUM FOIL FOR RECYCLING REYNOLDS CALLS ITS PROGRAM GREAT BALLS OF FOIL MS DAVIS A NORFOLK VA HOMEMAKER SAYS SHE PITCHED THE SAME IDEA TO REYNOLDS 11 YEARS AGO BUT REYNOLDS BASED IN RICHMOND VA TURNED DOWN HER VERSION WHICH SHE CALLED KEEP THE BALL ROLLING SO WHEN MS DAVIS HEARD OF GREAT BALLS OF FOIL IN LATE 1991 SHE AND HER LAWYER SENT LETTERS TO THE COMPANY CREDIT SHOULD BE GIVEN WHERE CREDIT IS DUE SAYS MS DAVIS WHO SEEKS UNSPECIFIED COMPENSATION FROM REYNOLDS I'M NOT A ROCKET SCIENTIST AND I'M NOT A PHI BETA KAPPA BUT I AM CREATIVE THE COMPANY CONCEDES THAT ITS OFFICIALS MET WITH MS DAVIS 11 YEARS AGO BUT IT SAYS IN A RECENT LETTER TO HER LAWYER THAT HER NOTION WAS COMMON KNOWLEDGE BEFORE SHE PRESENTED IT TO REYNOLDS THE LETTER SPEAKS FOR ITSELF ASSERTS A REYNOLDS SPOKESWOMAN WE DON'T HAVE ANYTHING FURTHER TO ADD THE COMPANY SAYS IT HAS STOPPED RESPONDING TO MS DAVIS'S LETTERS BUT MS DAVIS HAS A TAPE THAT SHE CLAIMS IS A RECORDING OF HER 1982 CONVERSATION WITH REYNOLDS EXECUTIVES A DEVELOPMENT THAT MAY YET FURTHER EMBROIL THE FOIL CONTROVERSY IT MAY NOT HAVE THE IMPACT OF THE WATERGATE OR RODNEY KING TAPES BUT MS DAVIS'S RECORDING WHICH IS LARGELY UNINTELLIGIBLE DOES HAVE AN UNIDENTIFIED MAN SAYING IT'S A GREAT IDEA MS DAVIS PERSUADED THE RICHMOND TIMESDISPATCH TO RUN AN ARTICLE ON THE WRAP SPAT TWO WEEKS AGO WHICH WAS FOLLOWED BY ONE IN A NORFOLK PAPER CALLED THE VIRGINIANPILOT AND THE LEDGERSTAR SHE SAYS STRANGERS RECOGNIZE HER FROM HER PHOTO IN THE PAPERS A TV STATION HAS CALLED HER ABOUT DOING A NEWS STORY AND SHE ISN'T STOPPING THERE NEXT MS DAVIS PLANS TO PRESENT A NEW IDEA OF HERS TO THE AUTO INDUSTRY SHE DECLINES TO COMMENT ON WHAT HER LATEST CONCEPT IS BUT SHE SAYS SHE'S SENDING REGISTERED LETTERS TO ALL US AND JAPANESE AUTO MAKERS 9302160201 930216 TECHNOLOGY & HEALTH UNITING TWO KEY HEALTH CARE PROPOSALS IS URGED BY CLINTON TASK FORCE ADVISER BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL TWO WIDELY TALKEDABOUT PROPOSALS FOR REVISING HEALTH CARE MANAGED COMPETITION AND A COMPREHENSIVE SPENDING CAP SHOULD BE COMBINED AN ADVISER TO THE CLINTON ADMINISTRATION'S HEALTHCARE TASK FORCE SAYS THE PROPOSAL IS BEING MADE BY PAUL STARR A PRINCETON SOCIOLOGY PROFESSOR AND AUTHOR OF A PULITZER PRIZEWINNING BOOK ON THE US MEDICAL SYSTEM MR STARR IS ONE OF ABOUT 50 ACADEMIC ADVISERS TO THE HEALTHCARE TASK FORCE ALTHOUGH MR STARR DOESN'T SPEAK FOR THE ENTIRE WHITE HOUSE TASK FORCE HIS PROPOSAL REPRESENTS THE MOST DETAILED EFFORT YET TO UNITE TWO MAJOR FACTIONS IN THE CURRENT HEALTHCARE DEBATE HIS VIEWS APPEAR IN A SPECIAL ISSUE OF HEALTH AFFAIRS BEING PUBLISHED THIS WEEK JOINING MR STARR IN HIS PROPOSAL IS WALTER ZELMAN CALIFORNIA'S DEPUTY INSURANCE COMMISSIONER FOR HEALTH ISSUES MANAGED COMPETITION WHICH IS GENERALLY VIEWED AS THE LESS DRASTIC OF THE TWO REVISIONS HAS WON AT LEAST SOME MEASURE OF SUPPORT FROM HOSPITALS INSURANCE COMPANIES AND BIG CORPORATIONS CONCERNED ABOUT THEIR RISING EMPLOYEE BENEFIT COSTS MOST MANAGED COMPETITION PROPOSALS CENTER ON A WAY TO POOL CONSUMERS TOGETHER INTO GIANT GROUPS KNOWN AS HEALTH INSURANCE PURCHASING COOPERATIVES THAT IN THEORY SHOULD INCREASE THE PUBLIC'S BUYING CLOUT IN CHOOSING AMONG HEALTH PLANS MESSRS STARR AND ZELMAN LARGELY ENDORSE THAT APPROACH CONTENDING THAT IT WILL ENCOURAGE CONSUMERS TO MAKE QUALITYCONSCIOUS AS WELL AS COSTCONSCIOUS DECISIONS BUT MESSRS STARR AND ZELMAN ALSO FAVOR A BROAD ATTEMPT TO REIN IN US HEALTH CARE SPENDING SUCH SPENDING CAPS KNOWN AS GLOBAL BUDGETS ARE FAVORED BY SOME CONSUMER GROUPS AND LIBERAL DEMOCRATIC LEGISLATORS OPPOSITION TO SUCH CAPS IS INTENSE HOWEVER DOCTORS AND INSURERS FEAR THAT GLOBAL BUDGETS WOULD LEAD TO HIGHLY BUREAUCRATIC CONTROLS ON EACH STATE'S SPENDING AND ON EACH TYPE OF MEDICAL PROCEDURE MESSRS STARR AND ZELMAN ACKNOWLEDGE THAT SOME GLOBAL BUDGET PROPOSALS AMOUNT TO A FINE RECIPE FOR BLOCKING STRUCTURAL REFORM AND HEIGHTENING CONFLICT BUT THEY CONTEND THEY HAVE DEVISED A BETTER METHOD THEIR PROPOSAL WOULDN'T LIMIT ANY SPECIFIC MEDICAL PROCEDURES INSTEAD IT WOULD FOCUS ON PERCAPITA RATES FOR HEALTHCARE COVERAGE AS ESTABLISHED BY THE BUYING COOPERATIVES THOSE RATES WOULD BE SET IN THE MARKETPLACE AND WOULD BE LARGELY PAID BY EMPLOYERS BUT THE GOVERNMENT WOULD THEN DETERMINE A MAXIMUM ALLOWABLE RATE OF INCREASE IN BENCHMARK PREMIUMS EACH YEAR BY LIMITING THE OVERALL POOL OF MONEY THAT A BUYING COOPERATIVE COULD SPEND MESSRS STARR AND ZELMAN ARGUE PRESSURES WOULD BE CREATED TO HOLD DOWN COSTS BUT HEALTH CARE PROVIDERS AND CONSUMERS STILL WOULD HAVE CONSIDERABLE FLEXIBILITY IN DECIDING HOW THAT MONEY WOULD BE SPENT BUYING COOPERATIVES THAT FAILED TO KEEP THEIR RATE INCREASES WITHIN THE ALLOWED LIMIT WOULD COME UNDER GOVERNMENT SCRUTINY THESE COOPERATIVES COULD BE SUBJECT TO STRICT REGULATORY CONTROLS OR DISBANDED IF THEY WEREN'T ABLE TO KEEP PRICES IN LINE A COMBINED STRATEGY OF MANAGED COMPETITION AND GLOBAL COST CONTROLS IS THE BEST WAY TO AVERT RUNAWAY PRICE INCREASES AND AN UNRAVELING OF THE HEALTHINSURANCE SYSTEM MESSRS STARR AND ZELMAN CONCLUDE IF THE CLINTON ADMINISTRATION DECIDES TO PRESS ON WITH THE STARRZELMAN PROPOSAL THOUGH IT MAY FACE SOME TOUGH SELLING AHEAD TRYING TO MERGE GLOBAL BUDGETS AND MANAGED COMPETITION IS A VERY DIFFICULT TASK SAID VIC CAMPBELL PRESIDENT OF THE FEDERATION OF AMERICAN HEALTH SYSTEMS AND A SENIOR HCAHOSPITAL CORP OF AMERICA EXECUTIVE WHILE MR CAMPBELL SAID HE'S GENERALLY SUPPORTIVE OF MANAGED COMPETITION HE CONTENDED THAT GLOBAL BUDGETS AND PRICE CONTROLS HAVEN'T WORKED IN ANY INDUSTRY IN AMERICA EQUALLY SKEPTICAL IS DONALD BARRETT EXECUTIVE VICE PRESIDENT OF OXFORD HEALTH PLANS INC A DARIEN CONN HEALTH MAINTENANCE ORGANIZATION I THINK SPENDING CAPS ARE WISHFUL THINKING MR BARRETT SAID OVERLY TIGHT PRICE CONTROLS MIGHT CAUSE INSURERS AND HEALTH CARE PROVIDERS TO WITHDRAW FROM THE MARKET MAKING IT DIFFICULT FOR PEOPLE TO GET NECESSARY CARE HE SAID AT PRUDENTIAL INSURANCE CO OF AMERICA HOWEVER VICE PRESIDENT PAUL COOPER SAID THE DEBATE OVER HEALTH CARE CHANGES IS STILL FLUID ENOUGH THAT ANY POSSIBILITY MIGHT PREVAIL I WOULDN'T SAY THAT NO ONE CAN DESIGN A SYSTEM WHERE GLOBAL BUDGETS AND MANAGED COMPETITION ALL FIT TOGETHER HE SAID BUT BEFORE WE SUPPORT IT IN CONCEPT WE'VE GOT TO SEE HOW IT WORKS IN DETAIL 9302160200 930216 TECHNOLOGY LOSING BIDDERS FILE TO BLOCK THE AWARD OF AIR FORCE CONTRACT A WALL STREET JOURNAL NEWS ROUNDUP COMPUADD COMPUTER CORP AND ELECTRONIC DATA SYSTEMS CORP LOSING BIDDERS FOR A 724 MILLION AIR FORCE COMPUTER CONTRACT SAID THEY HAVE FILED FORMAL PROTESTS SEEKING TO BLOCK THE AWARD THE PROTESTS FILED LATE FRIDAY WITH A GENERAL SERVICES ADMINISTRATION APPEALS BOARD STALLS WORK ON THE HUGE CONTRACT WHICH ALREADY HAS BEEN REBID TWICE FOLLOWING EARLIER APPEALS THE AIR FORCE AWARDED THE WORK FEB 2 TO ZENITH DATA SYSTEMS A UNIT OF FRANCE'S CIE DES MACHINES BULL AND GOVERNMENT TECHNOLOGY SERVICES INC A CHANTILLY VA SYSTEMS INTEGRATOR TOM BUCHSBAUM A ZENITH VICE PRESIDENT SAID IN A STATEMENT HE IS CONFIDENT THAT ZENITH WILL RETAIN ITS SHARE OF THE AWARD THE BUFFALO GROVE ILL COMPANY WAS THE SOLE WINNER OF THE WORK BUT WAS FORCED TO SHARE THE CONTRACT FOLLOWING PREVIOUS PROTESTS THE CONTRACT CLEARS THE COMPANIES TO SELL UP TO 300000 COMPUTER SYSTEMS TO THE DEFENSE DEPARTMENT AND OTHER AGENCIES BOTH COMPUADD IN AUSTIN TEXAS AND ELECTRONIC DATA SYSTEMS A GENERAL MOTORS CORP UNIT IN DALLAS DECLINED TO DISCUSS THEIR PROTESTS UNTIL EDITED VERSIONS OF THEIR FILINGS ARE RELEASED BY THE AIR FORCE THIS WEEK PREVIOUSLY ZENITH'S COMPETITORS HAVE ARGUED THAT CRITICAL GOVERNMENT COMPUTER CONTRACTS SHOULDN'T BE AWARDED TO A FOREIGN OWNED COMPANY EVEN THOUGH ZENITH HAS A LONG RECORD AS A SUPPLIER TO THE US GOVERNMENT IN ADDITION OTHER BIDDERS INCLUDING COMPUADD AND ELECTRONIC DATA SYSTEMS HAVE COMPLAINED THAT ZENITH'S EARLIER PROPOSALS INCLUDED COMPUTER MONITORS THAT DIDN'T COMPLY WITH GOVERNMENT TRADE RULES ZENITH IN ITS STATEMENT SAID IT HAS CHANGED ITS MONITOR MANUFACTURING PROCESS TO COMPLY WITH THE RULES THE ONLY MOTIVATION FOR ANY ACTION AGAINST THE AWARD IS OUR COMPETITORS' ATTEMPT TO PROTECT THEIR OWN BUSINESS INTERESTS MR BUCHSBAUM SAID 9302160199 930216 CHANGES MULLED FOR THE MILITARY ARE SCALED BACK POWELL URGES CONSOLIDATION OF MAINTENANCE WORK NOTES INDUSTRY CONCERN BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S TOP MILITARY OFFICER CALLED FOR SWEEPING CONSOLIDATION OF AIRCRAFT MAINTENANCE AND OTHER SUPPORT SERVICES FOR THE MILITARY CONCLUDING A HALFYEAR REVIEW OF THE ROLES AND MISSIONS OF THE ARMED SERVICES GEN COLIN POWELL CHAIRMAN OF THE JOINT CHIEFS OF STAFF ALSO RECOMMENDED THAT A NEW HEADQUARTERS BE CREATED TO OVERSEE ALL MILITARY FORCES BASED IN THE US AND TO PREPARE THE MILITARY FOR ITS NEW PEACEKEEPING AND DISASTERRELIEF MISSIONS FOR THE DEFENSE INDUSTRY THE MOST CONTROVERSIAL PART OF THE REPORT CONCERNS THE MULTIBILLIONDOLLAR BUSINESS OF IMPROVING AND MAINTAINING AIRCRAFT TANKS TRUCKS AND SHIPS THE REPORT SAID THE MILITARY'S MAINTENANCE SYSTEM HAS OVERCAPACITY OF AS MUCH AS 50 BUT CALLED FOR CLOSING ONLY ABOUT A QUARTER OF THE MILITARY'S 30 MAINTENANCE DEPOTS AN ACTION THE REPORT SAID COULD SAVE AS MUCH AS 600 MILLION A YEAR THAT IMPLIES THAT THE REST OF THE EXCESS CAPACITY MIGHT BE ABSORBED BY HAVING THE MILITARY TAKE IN WORK CURRENTLY DONE BY THE PRIVATE SECTOR MAINLY BY PRIME CONTRACTORS THAT BUILD AND MAINTAIN SHIPS AIRCRAFT AND OTHER WEAPONS PLATFORMS AT A NEWS CONFERENCE FRIDAY GEN POWELL WENT OUT OF HIS WAY TO ADDRESS DEFENSE INDUSTRY CONCERNS ABOUT THE PROPOSED CONSOLIDATION ONE OF THE THINGS WE REALLY WANT TO LOOK AT IS SEEING HOW MUCH CAN BE CONTRACTED OUT IN ORDER TO HELP THE INDUSTRIAL BASE HE SAID GEN POWELL APPEARED SOMEWHAT DEFENSIVE ABOUT THE REPORT WHICH RETREATED FROM SOME RECOMMENDATIONS FOR MILITARY REORGANIZATION MADE IN EARLIER DRAFTS SUCH AS STRIPPING THE ARMY AND NAVY OF THEIR SPACERELATED WORK AND TRANSFERRING THOSE FUNCTIONS TO THE AIR FORCE SOME WILL FIND IT MUCH TOO MODEST HE SAID OF THE REPORT IT DOESN'T GO TO REVOLUTIONARY EXTREMES SUCH AS ELIMINATING THE MARINE CORPS OR PULLING ALL THE AVIATION OUT OF THE MARINE CORPS OTHERS I AM SURE WILL FIND SOME OF THE PROPOSALS TOO RADICAL THE RETREAT FROM EARLIER RECOMMENDATIONS WAS PORTRAYED IN SOME MEDIA REPORTS AS A SLAP IN THE FACE OF THE CLINTON ADMINISTRATION IN FACT THE RECOMMENDATIONS ARE IN LINE WITH THE ADMINISTRATION'S VIEWS SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN A GEORGIA DEMOCRAT WHO HAS OTHER DIFFERENCES WITH THE ADMINISTRATION HAS BEEN THE LEADING ADVOCATE OF SHAPING THE POSTCOLD WAR MILITARY BY ASKING QUESTIONS ABOUT EACH OF THE SERVICES' ROLES AND MISSIONS IN CONTRAST SEVERAL OF THE CLINTON ADMINISTRATION'S MOST INFLUENTIAL DEFENSE OFFICIALS BELIEVE THAT EXAMINING ROLES AND MISSIONS IS THE WRONG APPROACH TO CUTTING BACK THE MILITARY BECAUSE IT FORCES EACH SERVICE TO DEFEND ITS EXISTING HARDWARE RATHER THAN ASK LARGER QUESTIONS ABOUT WHAT SORT OF THREATS THE NATION FACES AND HOW THOSE SHOULD BEST BE ADDRESSED FOR EXAMPLE GORDON ADAMS WHO IS NOW THE WHITE HOUSE'S BUDGET ADVISER ON DEFENSE ISSUES LAST FALL FAULTED THE ROLES AND MISSIONS APPROACH BECAUSE IT PITS THE SERVICES AGAINST EACH OTHER THE REPORT SUGGESTED FEW CHANGES TO THE SERVICES THEMSELVES BESIDES THE PROPOSAL TO CREATE A NEW COMMANDER FOR FORCES IN THE US TO BE BASED IN NORFOLK VA IT RECOMMENDED THE MARINE CORPS NOT PROVIDE ITS OWN MULTIPLELAUNCH ROCKET SYSTEMS THE HIGHTECH ARTILLERY THAT WAS FIRST USED IN THE PERSIAN GULF WAR BUT RELY ON THE ARMY FOR THAT ASSIGNING THE ROCKETS TO THE ARMY COULD SAVE 300 MILLION OVER SIX YEARS THE REPORT SAID LTV CORP IS THE PRIME CONTRACTOR OF THE SYSTEM THE REPORT ALSO CALLED FOR CONSOLIDATING PRELIMINARY PILOT TRAINING PROGRAMS AND FOR REDUCING EACH SERVICE'S CONSTRUCTION ENGINEERING OPERATIONS AND IT SAID THE ARMY NEEDS TO CONSIDER REDUCING THE SIZE OF ITS LIGHT INFANTRY CONTINGENT DESPITE THE REPORT'S VARIOUS RETREATS DEFENSE ANALYSTS APPLAUDED IT AS A SUBSTANTIAL FIRST STEP INTO THE POSTCOLD WAR WORLD IT'S THE FIRST TIME SINCE 1948 THAT THE SERVICES HAVE APPROACHED THIS WITH A FAIRLY OPEN MIND SAID ROBERT GASKIN VICE PRESIDENT OF BUSINESS EXECUTIVES FOR NATIONAL SECURITY A GROUP THAT LOOKS FOR WAYS TO CONTROL DEFENSE SPENDING TWO ASIDES IN THE REPORT COULD AFFECT DISCUSSIONS NOW UNDER WAY AT THE PENTAGON ABOUT CUTTING THE SERVICES' BUDGETS THE REPORT CITES LOCKHEED CORP'S MILSTAR MILITARY COMMUNICATIONS SATELLITE AS ONE OF FOUR PARTICULARLY NOTEWORTHY ACQUISITIONS THE AIR FORCE RESPONDING TO A DIRECTIVE TO CUT ITS 1994 BUDGET BY 28 BILLION LAST WEEK PROPOSED ENDING THE PROGRAM BUT THE REPORT DID SUPPORT THE AIR FORCE'S PROPOSAL TO STOP THE ACQUISITION OF 24 F16 FIGHTERS A MOVE THAT WAS FORCED UPON IT LAST YEAR BY DEFENSE SECRETARY LES ASPIN WHEN HE WAS STILL CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITEEE THE F16 IS BUILT BY GENERAL DYNAMICS CORP 9302160198 930216 WHO'S NEWS STAODYN INC STAODYN INC LONGMONT COLO LYNDA S DREILING 45 YEARS OLD EXECUTIVE VICE PRESIDENT OF THIS MAKER OF ELECTROMEDICAL EQUIPMENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER FILLING A VACANCY 9302160197 930216 CANADIAN FIRMS' SHARP PROFIT GAINS SIGNAL RECOVERY IN NATION'S ECONOMY BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIAN CORPORATE PROFITS TURNED SHARPLY HIGHER IN THE FOURTH QUARTER CONVINCING ANALYSTS THAT A MODERATE ECONOMIC RECOVERY IS FINALLY AT HAND A WALL STREET JOURNAL SURVEY OF 111 EARLY REPORTING COMPANIES SHOWED COMBINED FOURTHQUARTER EARNINGS OF 9523 MILLION CANADIAN DOLLARS US7582 MILLION REVERSING A LOSS OF C195 BILLION A YEAR EARLIER WHEN RESULTS WERE SKEWED BY SEVERAL LARGE CHARGES THE LATEST FIGURE WAS UP 63 FROM THE THIRD QUARTER COMBINED PROFIT FOR ALL OF 1992 WAS C32 BILLION REVERSING A LOSS OF C3921 MILLION IN 1991 WHILE THE IMPROVED EARNINGS SIGNAL FURTHER PROFIT GAINS THIS YEAR THE ECONOMIC RECOVERY IS NOT A BARNBURNER SAID LLOYD ATKINSON CHIEF ECONOMIST AT BANK OF MONTREAL IN TORONTO MR ATKINSON IS CALLING FOR A MODEST 3 INCREASE IN CANADIAN GROSS DOMESTIC PRODUCT IN 1993 AND AN UNEMPLOYMENT RATE STUCK IN THE 11 TO 115 RANGE THE UNEMPLOYMENT RATE IN JANUARY FELL TO 11 FROM 115 IN DECEMBER BUT THE DROP WAS DUE LARGELY TO A SHARP REDUCTION IN THE WORK FORCE THIS ISN'T GOING TO FEEL LIKE A RECOVERY FOR A LOT OF FOLK MR ATKINSON SAID MR ATKINSON SEES CORPORATE RESTRUCTURING EFFORTS CONTINUING FOR A FEW MORE YEARS BUT THE CHANGES HE SAID HAVE MADE CANADIAN COMPANIES MUCH MORE COMPETITIVE ESPECIALLY IN MANUFACTURING THEY ARE INVESTING LIKE MAD THEY'RE DELAYERING THEY'RE RESTRUCTURING BY THE END OF THIS YEAR MR ATKINSON IS LOOKING FOR CANADIAN CORPORATE PROFITS TO CLIMB TO ABOUT 6 OF GROSS DOMESTIC PRODUCT UP FROM 44 IN THE FIRST QUARTER OF 1991 WHEN THEY BOTTOMED OUT DURING THE RECESSION SECURITIES FIRM WOOD GUNDY INC OF TORONTO EXPECTS CORPORATE PRETAX PROFITS TO JUMP 35 IN 1993 PROPELLED BY HIGHER SALES AND COSTCUTTING CONSUMERS STILL SADDLED WITH A HIGH DEBT LOAD CANNOT BE EXPECTED TO DRIVE THE RECOVERY AS THEY DID COMING OUT OF THE 198182 RECESSION MR ATKINSON ADDED WITH CANADA'S SAVINGS RATE AT ABOUT 10 OF DISPOSABLE INCOME COMPARED WITH ABOUT 18 IN 198182 THERE ISN'T A GREAT BIG CUSHION THAT PEOPLE ARE SITTING ON BUSINESS'S FIXED INVESTMENT IN SUCH ITEMS AS PLANTS AND MACHINERY WILL SPEARHEAD THE IMPROVING ECONOMY MR ATKINSON SAID MUTUAL FUND MANAGER FRANK MERSCH SAID HE IS REASONABLY CONFIDENT THAT CANADA IS IN A SUSTAINED RECOVERY PHASE FOR SEVERAL MONTHS NOW HE SAID THE COMPANIES THAT WE TALK TO HAVE BEEN INDICATING THAT THEIR VOLUMES ARE UP MR MERSCH VICE PRESIDENT OF EQUITY MANAGEMENT AT ALTAMIRA INVESTMENT SERVICES INC IN TORONTO IS PARTICULARLY ENCOURAGED BY CORPORATE CASH FLOWS WHICH HAVE BEEN GAINING STEAM BY HIS FIRM'S CALCULATIONS STOCK PRICE/CASH FLOW MULTIPLES HAVE BEEN DECLINING FOR SEVERAL MONTHS ONE FACTOR THAT MAKES HIM BULLISH ON CANADIAN STOCKS HIGHER CASH FLOWS COUPLED WITH PRODUCTIVITY GAINS HAVE PAVED THE WAY FOR PROFITMARGIN IMPROVEMENTS HE SAID THE ONLY MISSING INGREDIENT IS POLITICAL STABILITY WHEN THAT ARRIVES MR MERSCH SAID THERE WILL BE NO EXCUSE NOT TO BUY CANADIAN CANADA WILL HOLD AN ELECTION THIS YEAR IN QUEBEC THE SEPARATIST PARTI QUEBECOIS LEADS THE LIBERAL GOVERNMENT IN OPINION POLLS AND A PROVINCIAL ELECTION MUST BE HELD BY NEXT YEAR THE RECENT UPTICK IN CANADIAN CORPORATE PROFITS HAS BROUGHT DOWN THE PRICE/EARNINGS RATIO OF THE TORONTO STOCK EXCHANGE'S 300STOCK COMPOSITE INDEX THE INDEX'S P/E RATIO ON DEC 18 REACHED THE DIZZYING LEVEL OF 15641 TIMES TRAILING 12MONTH EARNINGS THEN SANK TO ABOUT 55 TIMES EARNINGS AS OF LATE LAST WEEK BUT THE RATIO WON'T BE A RELIABLE INDICATOR OF STOCKPRICE VALUATIONS UNTIL EARNINGS RETURN TO TRADITIONAL LEVELS ANALYSTS SAID THE RATIO HAD BEEN PUSHED SKYHIGH BY THE LARGE ONETIME CHARGES TAKEN BY SEVERAL CANADIAN COMPANIES DURING THE RECESSION RESULTS FOR FIVE MINING COMPANIES SHOWED A COMBINED FOURTHQUARTER LOSS OF C1567 MILLION WIDENING FROM A LOSS OF C200000 A YEAR EARLIER COMINCO LTD REPORTED A SHARPLY EXPANDED LOSS DUE TO A C50 MILLION PRETAX PROVISION FOR LEAD SMELTER MODIFICATION LOW NICKEL PRICES LEFT INCO LTD WITH A LOSS OF C289 MILLION WIDENING FROM A LOSS OF C58 MILLION SIX GOLD MINING CONCERNS HAD A COMBINED PROFIT OF C723 MILLION UP MORE THAN FOURFOLD FROM C158 MILLION AMERICAN BARRICK RESOURCES CORP EARNED US655 MILLION MORE THAN DOUBLE THE US241 MILLION OF A YEAR EARLIER EIGHT COMPANIES IN THE OIL AND GAS SECTOR RECORDED A COMBINED PROFIT OF C2762 MILLION REVERSING A LOSS OF C731 MILLION THE SWING WAS DUE MAINLY TO PETROCANADA WHICH REPORTED PROFIT OF C27 MILLION REVERSING A LOSS OF C364 MILLION WHICH INCLUDED A C369 MILLION RESTRUCTURING CHARGE SEVENTEEN INDUSTRIAL COMPANIES POSTED EARNINGS OF C1563 MILLION DOWN 14 FROM C1811 MILLION THE DECLINE WAS DUE LARGELY TO STEELMAKER DOFASCO INC WHICH TOOK A C1922 MILLION RESTRUCTURING CHARGE WIDENING ITS LOSS TO C1089 MILLION FROM A LOSS OF C15 MILLION NORTHERN TELECOM LTD HAD ITS BEST ONEYEAR RESULTS EVER POSTING A PROFIT OF US5483 MILLION UP FROM US5149 MILLION A YEAR EARLIER FOURTHQUARTER EARNINGS JUMPED TO US2556 MILLION FROM US208 MILLION BCE INC THE PARENT OF BELL CANADA AND NORTHERN TELECOM POSTED A C139 BILLION PROFIT FOR 1992 AN ALLTIME RECORD AMONG CANADIAN COMPANIES ITS FOURTHQUARTER PROFIT ROSE TO C528 MILLION FROM C368 MILLION THE FOREST INDUSTRY POSTED NARROWER LOSSES LARGELY DUE TO A C5283 MILLION PRETAX CHARGE TAKEN BY CANADIAN PACIFIC FOREST PRODUCTS LTD IN THE 1991 FOURTH QUARTER EXCLUDING CP FOREST WHICH IS 797OWNED BY CANADIAN PACIFIC LTD 11 FOREST CONCERNS HAD A COMBINED LOSS OF C821 MILLION NARROWING A LOSS OF C2986 MILLION AYEAR EARLIER NINE CONSUMER PRODUCTS COMPANIES HAD COMBINED PROFIT OF C1575 MILLION UP 19 FROM C1323 MILLION 9302160196 930216 AMERICAN STOCK EXCHANGE SEAT NEW YORK THE AMERICAN STOCK EXCHANGE SAID A SEAT ON THE EXCHANGE SOLD FOR 98000 UP 6000 FROM THE PREVIOUS SALE FEB 11 AMEX SEATS ARE CURRENTLY BID AT 90000 AND OFFERED AT 110000 9302160195 930216 S&P RAISES RATINGS ON UNISYS CORP DEBT NEW YORK STANDARD & POOR'S CORP SAID IT RAISED THE SENIOR DEBT RATING ON UNISYS CORP AND UNISYS FINANCE CORP REMOVING THE RATINGS FROM CREDITWATCH S&P RAISED THE SENIOR DEBT RATING TO SINGLEBPLUS FROM SINGLEB AND THE SUBORDINATED DEBT RATING TO SINGLEBMINUS FROM TRIPLECPLUS UNISYS HAS ABOUT 25 BILLION OF DEBT OUTSTANDING THE BLUE BELL PA COMPUTER SYSTEMS COMPANY HAD BEEN PLACED ON STANDARD & POOR'S CREDITWATCH JAN 20 WITH POSITIVE IMPLICATIONS THE RATINGS SERVICE SAID THE UPGRADE REFLECTS UNISYS'S IMPROVED FINANCIAL CONDITION AND IMPROVING EARNINGS IT ADDED THAT THE IMPROVED FINANCIAL CONDITION OF THE COMPANY WOULD ALLOW IT TO BETTER WEATHER THE CURRENT TURMOIL IN THE INDUSTRY THAN IN THE PAST 9302160194 930216 WHO'S NEWS RITE AID CORP RITE AID CORP CAMP HILL PA JOEL F FELDMAN 39 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT FOR MANAGED CARE SERVICES A NEWLY CREATED POSITION MR FELDMAN HAD SERVED AS THE DRUGSTORE CHAIN'S VICE PRESIDENT FOR MANAGED CARE SERVICES 9302160193 930216 BUSINESS BRIEF MAYOR SEEKS RULING ON PLANS BY DIGITAL TO SHUT BOSTON PLANT BOSTON MAYOR RAYMOND FLYNN ASKED THE MASSACHUSETTS ATTORNEY GENERAL TO DETERMINE WHETHER DIGITAL EQUIPMENT CORP COULD BE BARRED FROM CLOSING A PLANT FOR WHICH IT ACCEPTED TAX BREAKS THE REQUEST FOLLOWS A MICHIGAN JUDGE'S DECISION LAST WEEK TO PREVENT GENERAL MOTORS CORP FROM CLOSING ITS YPSILANTI MICH ASSEMBLY PLANT BECAUSE IT RECEIVED TAX ABATEMENTS FROM THE MUNICIPALITY JUDGE DONALD E SHELTON SAID THAT IN EXCHANGE FOR RELIEF ON ITS TAXES GM MADE AN IMPLICIT PROMISE TO KEEP THE FACILITY OPERATING MAYOR FLYNN SAID BOSTON PROVIDED DIGITAL WITH ALMOST 7 MILLION IN SUBSIDIES IN ORDER TO CONSTRUCT THE BOSTON FACILITY IN 1980 THE SUBSIDIES INCLUDED A GRANT TO CLEAR THE SITE A REDUCTION IN REAL ESTATE TAXES AND THE RENTAL PRICE OF THE LAND AND A REDUCTION ON THE BUILDING PURCHASE PRICE THE COMPUTER MAKER HAS SAID IT PLANS TO CLOSE THE PLANT WHICH PRODUCES CABLES FOR COMPUTER SYSTEMS IN APRIL SOME 190 JOBS WOULD BE ELIMINATED DIGITAL SAID IT PLANS TO BUY CABLES RATHER THAN MAKE THEM NIKKI RICHARDSON A DIGITAL SPOKESWOMAN SAID THE PLANT CLOSING IS PART OF THE COMPANY'S WORLDWIDE DOWNSIZING SHE DECLINED TO COMMENT ON WHAT OBLIGATIONS DIGITAL HAS TO THE COMMUNITY AFTER ACCEPTING TAX BREAKS BUT SHE SAID DIGITAL HAS BEEN WORKING WITH CITY OFFICIALS TO TRANSFER THE USE OF THE PLANT SO THAT IT WILL PROVIDE EMPLOYMENT FOR THE COMMUNITY THOMAS SAMOLUK A MASSACHUSETTS ASSISTANT ATTORNEY GENERAL SAID HE HAD NO SUBSTANTIVE LEGAL EVALUATION OF THE REQUEST 9302160192 930216 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR GROWING UNEMPLOYMENT AND MORE WORK HOURS AT THE NATION'S FACTORIES SHOULD HAVE HELPED INDUSTRIAL OUTPUT IN JANUARY MAINTAIN THE EXPANSION THAT BEGAN LAST FALL THE GOVERNMENT ALREADY HAS REPORTED A 34000JOB GAIN IN MANUFACTURING EMPLOYMENT DURING JANUARY AND THE LONGEST WORK WEEK IN 28 YEARS BOTH GOOD SIGNS FOR THE MONTHLY INDUSTRIAL PRODUCTION NUMBERS DUE OUT THIS WEEK THOMAS CARPENTER CHEIF ECONOMIST AT ASB CAPITAL MANAGEMENT SAID HE EXPECTS THE JANUARY INDUSTRIAL PRODUCTION FIGURES TO SHOW A 07 INCREASE UP SLIGHTLY FROM THE 05 MONTHLY AVERAGE INCREASE SINCE OCTOBER WHEN YOU TAKE GAINS IN MANUFACTURING JOBS AND ADD TO THAT THE LONGER WORK WEEK AND INCREASED PRODUCTIVITY YOU CAN EXPECT A STRONG GAIN IN INDUSTRIAL PRODUCTION MR CARPENTER SAID THE INCREASE IN INDUSTRIAL OUTPUT SHOULD MEAN THAT MORE CAPACITY WAS USED MR CARPENTER ESTIMATED THAT INDUSTRIES USED 799 OF THEIR CAPACITY IN JANUARY UP FROM 793 IN DECEMBER ALTHOUGH SOME ANALYSTS SAY THE RISE IN CAPACITY UTILIZATION WILL PLACE UPWARD PRESSURE ON PRICES MR CARPENTER SAID IT WON'T HAPPEN THIS TIME THE FACT THAT THE ECONOMIC EXPANSION IS PRODUCTIVITY DRIVEN WILL KEEP INFLATION IN CHECK HE SAID 9302160191 930216 FOREIGN EXCHANGE GERMANY'S TARDINESS IN CUTTING RATES DISAPPOINTS DOLLAR BUYERS ANALYSTS SAY BY DIANE DIMOND AND CONNER MIDDELMANN SPECIAL TO THE WALL STREET JOURNAL DOLLAR BUYERS ARE DISAPPOINTED THEY HAD BEEN EXPECTING AGGRESSIVE INTERESTRATE CUTS IN GERMANY ONCE INFLATION WAS TAMED INSTEAD THEY'RE GETTING SMALL INCREMENTAL CUTS PROMPTED BY POLITICS AS WELL AS BY MONETARY CONDITIONS BUT A SERIES OF SMALL RATE CUTS IS ALL CURRENCY PLAYERS CAN HOPE FOR THIS YEAR ANALYSTS SAY GRADUAL EASING IS HERE TO STAY SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON WITHOUT SHARPER CUTS IN GERMAN RATES THE DOLLAR PROBABLY WILL ADVANCE MORE SLOWLY AGAINST THE MARK THAN MANY PLAYERS ANTICIPATED ANALYSTS SAY IN LONDON TRADING YESTERDAY THE DOLLAR WAS QUOTED AT 16587 MARKS LITTLE CHANGED FROM 16585 MARKS IN NEW YORK ON FRIDAY THE PRESIDENTS DAY HOLIDAY IN THE US DAMPED YESTERDAY'S TRADING AGAINST THE JAPANESE CURRENCY THE DOLLAR WAS QUOTED AT 12095 YEN IN LONDON UP SLIGHTLY FROM 12065 YEN IN NEW YORK ON FRIDAY ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16548 MARKS AND AT 12110 YEN ANALYSTS SAY THE DOLLAR PROBABLY WILL ADVANCE TO 175 MARKS BY YEAR'S END BUT SOME BELIEVE THE GAINS WILL DEPEND AS MUCH ON RISING US RATES AS ON FALLING GERMAN RATES THAT CAUTIOUS OUTLOOK WOULD CHANGE IF GERMANY'S CENTRAL BANK LOWERED RATES SHARPLY TO DEFEND THE EXCHANGE RATE MECHANISM OF THE BELEAGUERED EUROPEAN MONETARY SYSTEM ANALYSTS DOUBT THAT THE BUNDESBANK WOULD SACRIFICE ITS CONSTITUTIONALLY MANDATED DEFENSE OF A STRONG MARK AND LOW INFLATION FOR THE SAKE OF THE EMS BUT THEY SAY THE CENTRAL BANK'S LATEST MOVES HAVE DENTED ITS CREDIBILITY MANY ANALYSTS WHO RELIED ON THE BUNDESBANK FEEL THEY'RE BOWING TO POLITICAL PRESSURE THAT THEY WOULDN'T HAVE BOWED TO BEFORE SAYS KEVIN LOGAN CHIEF ECONOMIST AT SWISS BANK CORP IN NEW YORK HISTORICALLY BANK OFFICIALS WAITED FOR ALL INDICATORS TO SIGNAL AN INFLATIONFREE OUTLOOK ANALYSTS SAY ONLY THEN DID THEY IMPLEMENT A SUBSTANTIAL CUT IN INTEREST RATES SOME CURRENCY PLAYERS WHO BEGAN BUYING DOLLARS FOR MARKS IN DECEMBER SAID THAT PATTERN LED THEM TO EXPECT A BIG RATE CUT THAT WOULD MAKE MARKDENOMINATED SECURITIES LESS ATTRACTIVE INSTEAD THE BUNDESBANK HAS NUDGED RATES LOWER WHILE INFLATION AND MONEY SUPPLY MEASURES WERE STILL ABOVE ITS TARGETS TWO WEEKS AGO THE BUNDESBANK CUT ITS DISCOUNT RATE WHICH SERVES AS A FLOOR FOR MONEY MARKET RATES 025 POINT AND ITS LOMBARD RATE WHICH SERVES AS A CEILING 050 POINT IN ITS ROUTINE OPENMARKET OPERATIONS THIS PAST WEDNESDAY IT ACCEPTED BIDS FOR SECURITIESREPURCHASE AGREEMENTS AS MUCH AS 0007 POINT LOWER THAN THE PREVIOUS WEEK'S RATE BECAUSE THE CUTS WERE MADE WHILE INFLATION WAS STILL ABOVE THE BUNDESBANK'S TARGET SOME ANALYSTS CONCLUDED THAT THE CUTS WERE DESIGNED TO EASE PRESSURE ON THE DANISH KRONE WHICH WAS UNDER FIERCE SPECULATIVE ASSAULT THE CENTRAL BANK'S WILLINGNESS TO EASE RATES FOR THE SAKE OF THE EMS RAISES QUESTIONS ABOUT HOW FAR IT WILL GO THE KRONE FIRMED AFTER THE LAST MODEST EASING BUT CURRENCY DEALERS MIGHT BEGIN SHRUGGING OFF MINOR RATE CUTS ANALYSTS SAY THAT WILL BE THE TEST SAYS RONALD LEVEN GLOBAL CURRENCY STRATEGIST AT MORGAN GUARANTY TRUST CO IN NEW YORK IF GERMANY'S CENTRAL BANKERS CUT RATES ONE PERCENTAGE POINT TO SAVE THE ERM THEIR INFLATIONFIGHTING CREDIBILITY WILL BE SUSPECT A CUT OF THAT MAGNITUDE WOULD FORCE YIELDS ON LONGTERM GERMAN BONDS HIGHER ANALYSTS SAY WHILE DRIVING DOWN SHORTTERM YIELDS TO WHICH CURRENCY RATES ARE LINKED BUT ANALYSTS AGREE THAT THE BUNDESBANK PROBABLY WON'T INSTITUTE RATE CUTS THAT WOULD THREATEN ITS GOAL OF PRICE STABILITY WHAT'S MORE LIKELY THEY SAY IS THAT THE CENTRAL BANK WILL KEEP NIBBLING AWAY AT RATES A FEW BASIS POINTS AT A TIME DICTATED BOTH BY PRESSURES ON THE ERM AND GERMANY'S DEEPENING RECESSION BOTH INFLATION AND MONEY SUPPLY ARE SET TO RISE MORE SLOWLY THIS YEAR ECONOMISTS SAY THAT WILL LEAVE ROOM FOR EASIER MONETARY POLICY AND THURSDAY'S 3 WAGE SETTLEMENT FOR WESTERN PUBLICSECTOR EMPLOYEES ALSO MINIMIZES THE THREAT OF INFLATION THE ANALYSTS ASSERT 9302160190 930216 FOURTH FINANCIAL ACQUISITION WICHITA KAN FOURTH FINANCIAL CORP SAID IT HAS COMPLETED ITS ACQUISITION OF SOUTHGATE BANKING CORP IN KANSAS AND ITS PRINCIPAL SUBSIDIARY SOUTHGATE BANK FOR 451310 SHARES OF COMMON STOCK 9302160189 930216 SANSUI ELECTRIC SLASHES EARNINGS PROJECTIONS FOR ITS FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO SANSUI ELECTRIC CO A SPECIALIZED AUDIO MAKER ANNOUNCED SHARP DOWNWARD REVISIONS IN ITS EARNINGS FORECASTS FOR THE FISCAL YEAR ENDED DEC 31 IT SAID CONSOLIDATED OR GROUP SALES WERE LOWER THAN ESTIMATED WHILE LOSSES WIDENED FROM EARLIER EXPECTATIONS AS THE RESULT OF THE SALE OF A SUBSIDIARY THE ELECTRONICS CONCERN SAID IT NOW EXPECTS CONSOLIDATED SALES TO HAVE FALLEN 81 TO 1560 BILLION YEN 1287 MILLION FROM 8286 BILLION YEN A YEAR AGO SANSUI SAID IN A FILING WITH THE TOKYO STOCK EXCHANGE THAT CONSOLIDATED LOSSES LIKELY WIDENED FROM EARLIER EXPECTATIONS AS A RESULT OF THE SALE OF HONG KONGBASED CAPETRONIC HOLDINGS LTD LAST MAY A SENIOR OFFICIAL WHO WAS ASKED WHY THE FIRM DIDN'T LOWER FORECASTS WHEN THE SALE TOOK PLACE SAID ONLY THAT WAS A MISS SANSUI SAID ITS CONSOLIDATED PRETAX LOSS FOR THE YEAR SHOULD TOTAL 490 BILLION YEN SLIMMER THAN THE 1770 BILLION YEN LOSS IT POSTED THE YEAR PRIOR BUT WIDER THAN THE 490 BILLION YEN LOSS IT HAD ESTIMATED THE COMPANY IS NOW EXPECTING A GROUP NET LOSS OF 860 BILLION YEN SLIMMER THAN THE 7464 BILLION YEN LOSS OF 1991 BUT IN SHARP CONTRAST TO THE 100 MILLION YEN IN NET PROFIT ORIGINALLY PROJECTED ON AN UNCONSOLIDATED OR PARENTONLY BASIS SANSUI SAID IT NOW SEES SALES OF 15 BILLION YEN FOR THE FULL YEAR DOWN 49 FROM 2050 BILLION YEN A YEAR EARLIER AND OFF 12 FROM THE 17 BILLION YEN IT HAD FORESEEN THE COMPANY SAID IT EXPECTS TO POST A PRETAX LOSS OF 340 BILLION YEN FOR THE YEAR NARROWER THAN THE 350 BILLION YEN LOSS OF 1991 BUT WIDER THAN THE 300 BILLION YEN LOSS IT ORIGINALLY HAD FORECAST SANSUI SAID ITS NET LOSS IS EXPECTED TO TOTAL 1770 BILLION YEN DOWN SHARPLY FROM A LOSS OF 7316 BILLION YEN IN 1991 BUT WIDER THAN THE 1450 BILLION YEN FORECAST EARLIER THE COMPANY SAID THAT SALES IN JAPAN THE US AND EUROPE DIDN'T PICK UP AS EXPECTED DURING THE SECOND HALF OF THE FISCAL YEAR IT SAID THAT ON THE WHOLE NET LOSSES NARROWED FROM THE YEAR EARLIER AFTER BALANCING A STRONG EXTRAORDINARY LOSS FROM THE CAPETRONIC SALES AND A MAJOR EXTRAORDINARY GAIN FROM THE SALE OF ITS SHIZUOKA OFFICE FACILITY THE COMPANY LEFT ITS UNCONSOLIDATED FORECAST FOR THE FIRST HALF OF THE PAST FISCAL YEAR UNCHANGED BUT REVISED FIGURES FOR THE SECOND HALF 9302160188 930216 LAW LEGAL BEAT TUBERCULOSIS IS REVIVING CONCERN ON LEGALITY OF FORCED TREATMENT BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL THE RESURGENCE OF TUBERCULOSIS IS REVIVING LONGDORMANT CIVIL LIBERTIES CONCERNS ABOUT QUARANTINES AND FORCED MEDICAL TREATMENT NEW YORK CITY WHERE THE DISEASE HAS STRUCK HARDER THAN ANYWHERE ELSE IN THE NATION HAS QUARANTINED MORE THAN 90 PEOPLE IN THE LAST TWO YEARS UNDER A POLIOERA LAW ALLOWING THE HEALTH COMMISSIONER TO LOCK UP PATIENTS WITHOUT A HEARING OR ADVICE FROM A LAWYER THE CITY'S HEALTH BOARD IS STUDYING HOW TO REVISE THE LAW WHICH CRITICS CALL OUTMODED BECAUSE OF CHANGES IN CIVIL RIGHTS LEGISLATION HOSPITALS THROUGHOUT THE US ARE USING MANDATORY DIRECTLY OBSERVED THERAPY IN WHICH HEALTHCARE WORKERS VISIT NONCONTAGIOUS TB PATIENTS DAILY AT HOME OR WORK TO MAKE SURE THEY TAKE THEIR MEDICINE THE TACTIC IS RECOMMENDED BY THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA AND THE AMERICAN LUNG ASSOCIATION IN NEW YORK IF PATIENTS BALK OFFICIALS MOVE ON TO STERNER MEASURES ALTHOUGH THOSE MEASURES DIFFER FROM STATE TO STATE THEY CAN INCLUDE QUARANTINES CIVIL LIBERTARIANS HOWEVER ARE TRYING TO PERSUADE HEALTH OFFICIALS TO AVOID APPLYING SUCH COERCIVE APPROACHES IN EVERY INSTANCE LAWRENCE O GOSTIN DIRECTOR OF THE AMERICAN SOCIETY FOR LAW MEDICINE AND ETHICS IN BOSTON SAYS SOME PEOPLE WILL TAKE THEIR MEDICINE WITH A MINIMUM OF SUPERVISION HOSPITALS SHOULD DEVISE INDIVIDUAL VOLUNTARY TREATMENT PLANS THAT PRESERVE PATIENT DIGNITY AND AUTONOMY MR GOSTIN SAYS PATIENT CONFIDENTIALITY IS ANOTHER CONCERN ATTORNEYS FOR PATIENTS SAY THE PUBLIC DOESN'T NECESSARILY UNDERSTAND THE DIFFERENCE BETWEEN ACTIVE TUBERCULOSIS WHICH IS CONTAGIOUS AND INACTIVE TUBERCULOSIS WHICH ISN'T THEY WARN THAT DOCTORS MUST BE CAREFUL TO KEEP CONFIDENTIAL THEIR INFORMATION ABOUT WHO HAS THE DISEASE CIVIL LIBERTIES GROUPS ALSO WORRY ABOUT LONGSTANDING CRIMINAL LAWS MAKING IT A MISDEMEANOR OR FELONY TO SPREAD TUBERCULOSIS THE GROUPS SAY THAT THE ENFORCEMENT OF SUCH LAWS WHILE LEGALLY VALID WOULD ACTUALLY DETER ILL PEOPLE FROM GOING TO DOCTORS FOR TREATMENT A HANDFUL OF STATES INCLUDING TEXAS HAVE SUCH LAWS ON THE BOOKS ARIZONA EVEN ALLOWS A YEAR OF IMPRISONMENT AS PUNISHMENT FOR BREAKING OUT OF QUARANTINE THE HEALTH DEPARTMENTS OF THOSE STATES HOWEVER SAY THE LAWS AREN'T ENFORCED SO FAR THESE ISSUES HAVEN'T BEEN LITIGATED VERY MUCH THE 1990 AMERICANS WITH DISABILITIES ACT PROHIBITS DISCRIMINATION ON THE BASIS OF A DISABILITY INCLUDING TUBERCULOSIS OR EVEN A PERCEIVED DISABILITY NONETHELESS EVEN CIVIL LIBERTARIANS AGREE THAT QUARANTINES AND OBSERVED THERAPY ARE SOMETIMES NECESSARY TO PROTECT PUBLIC HEALTH THEY JUST WANT DOCTORS TO PERFORM THEIR JOBS AS UNINTRUSIVELY AS POSSIBLE THE GREATEST CONCERNS INVOLVE QUARANTINES GENERALLY FORCED HOSPITAL OR HOME CONFINEMENT IMPOSED TO GUARANTEE THAT CONTAGIOUS PATIENTS WILL TAKE THEIR MEDICINE AND WON'T COME IN CLOSE CONTACT WITH OTHERS TUBERCULOSIS IS SPREAD THROUGH COUGHING SNEEZING AND EVEN BREATHING IT IS USUALLY PASSED TO HEALTHY INDIVIDUALS ONLY AFTER PROLONGED CONTACT SUCH PEOPLE WHO ARE EXPOSED TO TB HAVE ONLY A ONEIN10 CHANCE OF DEVELOPING ACTIVE TUBERCULOSIS OVER THEIR LIFETIMES BUT THE MAJORITY DO DEVELOP INACTIVE TB THE DISEASE SPREADS MOST QUICKLY IN POORLY VENTILATED AREAS AND TO CHILDREN THE ELDERLY AND PEOPLE WITH SUPPRESSED IMMUNE SYSTEMS TO BE FULLY CURED EVEN PATIENTS WHO ARE NO LONGER CONTAGIOUS MUST ENDURE A REGIMEN OF ABOUT 10 PILLS EVERY DAY FOR UP TO TWO YEARS AS MANY AS HALF DON'T COMPLETE THIS THERAPY A BIG REASON IS THAT MOST PATIENTS ARE HOMELESS JOBLESS AND ADDICTED TO NARCOTICS OR ALCOHOL DRUGRESISTANT TUBERCULOSIS HAS SO FLOURISHED THAT NATIONALLY ONE OUT OF EVERY SEVEN PATIENTS IS IMMUNE TO AT LEAST ONE DRUG ROBERT LEVY SENIOR STAFF ATTORNEY OF THE NEW YORK CIVIL LIBERTIES UNION SAYS DOCTORS CAN CURB THE DISEASE AND PRESERVE PATIENTS' RIGHTS BY EVALUATING EACH CASE INDIVIDUALLY AND GIVING EACH ONE AS MUCH OR AS LITTLE REIN AS NECESSARY IT'S SELDOM NECESSARY TO QUARANTINE ANYONE FORCIBLY HE ARGUES AT BETH ISRAEL MEDICAL CENTER IN MANHATTAN FOR INSTANCE SOME PATIENTS WHO WANT TO VENTURE OUT OF THEIR ROOMS ARE PERSUADED TO STAY WHEN PROVIDED WITH VIDEO GAMES TELEPHONES OR TELEVISIONS ONLY A FEW COURTS HAVE ADDRESSED THE ISSUE OF EXACTLY WHEN A HOSPITAL CAN FORCIBLY ISOLATE A TUBERCULOSIS PATIENT THESE COURTS HAVE GENERALLY APPLIED THE SAME STANDARD USED TO DECIDE WHETHER A MENTALLY ILL PERSON CAN BE DETAINED THE PERSON MUST POSE A RISK TO SOCIETY AND THE HOSPITAL MUST HAVE NO ALTERNATIVE THAT IS LESS RESTRICTIVE MR GOSTIN OF THE AMERICAN SOCIETY FOR LAW MEDICINE AND ETHICS SAYS SOME COERCIVE LAWS ARE LIKELY USED BUT PATIENTS AREN'T BRINGING SUIT IT'S HAPPENING SILENTLY HE SAYS YOU'RE DEALING WITH A PRETTY VULNERABLE AND DISORGANIZED POPULATION THE JURY SYSTEM HAS WON A STRONG ENDORSEMENT FROM ONE GROUP THAT'S SELDOM HEARD FROM JURORS IN A POLL CONDUCTED BY THE NATIONAL LAW JOURNAL AND LEXIS A SERVICE OF MEAD DATA CENTRAL INC 75 OF JURORS SURVEYED SAID THAT IF THEY WERE ON TRIAL THEMSELVES THEY'D PREFER TO HAVE THEIR CONDUCT EVALUATED BY A JURY OF THEIR PEERS THAN BY A JUDGE ONLY 11 SAID THEY'D RATHER BE TRIED BY A JUDGE THE REMAINDER WERE UNDECIDED A SIGNIFICANT MAJORITY WERE WILLING TO SECONDGUESS A PARTICULAR VERDICT SOME 61 OF JURORS POLLED SAID THEY WOULD HAVE VOTED FOR CONVICTION IN LAST YEAR'S TRIAL OF FOUR LOS ANGELES POLICE OFFICERS ACCUSED OF BEATING RODNEY KING AMONG BLACK JURORS 89 SAID THE OFFICERS SHOULDN'T HAVE BEEN ACQUITTED THE POLL WHICH QUERIED NEARLY 800 PEOPLE WHO SERVED ON CRIMINAL AND CIVIL JURIES DURING 1992 ADDRESSED SUCH ISSUES AS JURY REFORM THE VALUE OF EXPERT TESTIMONY AND THE ROLE OF RACE IN THE DECISIONMAKING PROCESS MOST JURORS SAID THEY FELT THE TIME THEY SERVED ON THEIR PANEL WAS WORTHWHILE AND THE TRIAL ITSELF WAS NECESSARY BUT A SIZABLE MINORITY SAID THE TRIAL THEY WATCHED WAS A WASTE OF TIME CIVIL JURORS WHO FOUND FOR THE DEFENDANT WERE MOST LIKELY TO CONCLUDE THAT THEIR TIME HAD BEEN MISSPENT IN CONTRAST TO SOME ARGUMENTS MADE BY REFORMERS WHO ADVOCATE IMPANELING JURIES OF EXPERTS FOR COMPLEX CASES AN OVERWHELMING NUMBER OF PEOPLE SURVEYED SAID THEY UNDERSTOOD THE JUDGES' INSTRUCTIONS AND HARDLY EVER FOUND EVIDENCE SO CONFUSING THAT THEY SIMPLY DISREGARDED IT HOWEVER THEY WERE A LITTLE LESS SURE THAT JURORS SHOULD HEAR THE MOST COMPLICATED CASES ONLY A SLIGHT MAJORITY OF 56 SAID THE MOST SCIENTIFIC AND TECHNICAL CASES CAN RECEIVE A FAIR HEARING FROM A LAY JURY DESPITE THEIR CLAIMS THAT THEY UNDERSTOOD THE RULES MANY JURORS ADMITTED THAT THEY DIDN'T ALWAYS FOLLOW THEM IN CRIMINAL CASES MORE THAN ONEFOURTH OF THE RESPONDENTS CAST ASIDE THE PRESUMPTION OF INNOCENCE IN FAVOR OF A BELIEF THAT THE DEFENDANT WAS GUILTY OR PROBABLY GUILTY SIMPLY BECAUSE HE OR SHE HAD BEEN BROUGHT TO TRIAL IN CIVIL CASES 35 OF JURORS SAID THEY AWARDED DAMAGES BASED ON THE DEFENDANT'S ABILITY TO PAY NOT ON THE HARM CAUSED THE SURVEY APPEARED TO ENDORSE THE USE OF PAID EXPERT WITNESSES A PRACTICE WHOSE LIMITS ARE CURRENTLY BEING TESTED IN A CASE BEFORE THE US SUPREME COURT BY LARGE MAJORITIES IN BOTH CIVIL AND CRIMINAL CASES JURORS SAID THE EXPERT TESTIMONY THEY HEARD WAS BOTH CREDIBLE AND INFLUENTIAL EXPERTS APPEARED IN 60 OF THE CASES AND 89 OF JURORS WHO HEARD THEM SAID THEY WERE VERY BELIEVABLE OR SOMEWHAT BELIEVABLE SOME 71 OF JURORS SAID EXPERTS MADE A DIFFERENCE IN THE OUTCOME A COMPANY THAT SELLS LIVINGWILL KITS WON THE RIGHT TO PROCEED WITH A LIBEL SUIT AGAINST AN NBCOWNED TELEVISION STATION IN DENVER THE RULING BY AN INTERMEDIATE STATE APPEALS COURT REVERSED A LOWER COURT DECISION THAT HAD DISMISSED BEFORE TRIAL THE LAWSUIT BY THE LIVING WILL CENTER DENVER THE APPEALS COURT SAID IT WAS POSSIBLE THAT A JURY WOULD FIND THAT SOME ASPECTS OF THE TWO KCNCTV REPORTS WERE MISLEADING THE LIVING WILL CENTER WHICH PROVIDES MATERIALS TO HELP PEOPLE PREPARE LIVING WILLS CONTENDS THE REPORTS FALSELY IMPLIED THAT THE COMPANY PROVIDED CUSTOMERS WITH NOTHING OF VALUE LIVING WILLS ARE DOCUMENTS THAT ENABLE AN INDIVIDUAL TO SPECIFY IN ADVANCE WHAT MEDICAL STEPS SHOULD BE TAKEN IN THE EVENT OF SERIOUS ILLNESS OR INJURY KCNC HAS DEFENDED ITS BROADCASTS AS NOT DEFAMATORY MERRILL H HASTINGS JR PRESIDENT OF THE LIVING WILL CENTER SAID THE REPORTS SEVERELY DAMAGED THE COMPANY AND THAT DOLLAR SALES VOLUME FELL 65 WITHIN A DAY OF THE FIRST BROADCAST KEVIN M SHEA AN ATTORNEY FOR THE TELEVISION STATION SAID HIS CLIENT IS CONSIDERING WHETHER TO SEEK A REHEARING BEFORE THE APPEALS COURT AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9302160187 930216 MICHAEL ANTHONY SAYS PROFIT ROSE IN QUARTER SPECIAL TO THE WALL STREET JOURNAL MOUNT VERNON NY MICHAEL ANTHONY JEWELERS INC EXPECTS TO REPORT NET INCOME OF 14 MILLION OR 20 CENTS A SHARE ON SALES OF 45 MILLION FOR ITS SECOND QUARTER ENDED IN DECEMBER ACCORDING TO THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MICHAEL PAOLERCIO THE PROFIT FIGURE INCLUDES A ONETIME PRETAX CHARGE OF 12 MILLION OR ABOUT 10 CENTS A SHARE AFTER TAX ASSOCIATED WITH THE EARLY TERMINATION OF AN EMPLOYMENT AGREEMENT HE SAID IN AN INTERVIEW MR PAOLERCIO NOTED HOWEVER THAT AS THE RESULT OF THE TERMINATION THE COMPANY WILL REALIZE LOWER EXECUTIVE COMPENSATION COSTS IN EXCESS OF 500000 OVER THE NEXT 18 MONTHS IN THE FISCAL 1992 SECOND QUARTER MICHAEL ANTHONY EARNED 12 MILLION OR 19 CENTS A SHARE ON SALES OF 434 MILLION NET INCOME FIGURES INCLUDED A ONETIME PRETAX CHARGE OF 500000 MICHAEL ANTHONY DESIGNS AND SELLS HANDCRAFTED 14KARAT GOLD JEWELRY MR PAOLERCIO POINTED TO A STRONGERTHANANTICIPATED CHRISTMAS SELLING SEASON AS ONE REASON FOR THE STRENGTH OF THE FISCAL SECOND QUARTER RENEWED CONSUMER CONFIDENCE HELPED SPARK SALES HE SAID HE SAID THE COMPANY'S CUSTOMERS HAD EXCELLENT SELLTHROUGH OF THE MICHAEL ANTHONY MERCHANDISE DURING THE HOLIDAY SEASON LEAVING THEM WITH HISTORICALLY LOW INVENTORY LEVELS FOR THIS TIME OF THE YEAR THE MICHAEL ANTHONY CUSTOMERS HAVE THUS NEEDED TO REPLENISH THEIR STOCK AND BRING INVENTORY LEVELS BACK UP TO BE READY FOR THE NEXT GIFTGIVING HOLIDAYS 9302160186 930216 POLITICS & POLICY LARRY IRVING TAPPED BY CLINTON FOR POST AT COMMERCE AGENCY WASHINGTON LARRY IRVING WAS PICKED BY PRESIDENT CLINTON TO BE ASSISTANT SECRETARY FOR COMMUNICATIONS AND INFORMATION AT THE COMMERCE DEPARTMENT AND HEAD THE NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION MR CLINTON ALSO SAID HE WILL NOMINATE JAMES LEE WITT TO HEAD THE FEDERAL EMERGENCY MANAGEMENT AGENCY MR WITT A FORMER JUDGE IN ARKANSAS CURRENTLY LEADS THE ARKANSAS OFFICE OF EMERGENCY MANAGEMENT IN THE CLINTON ADMINISTRATION THE TELECOMMUNICATIONS AGENCY IS EXPECTED TO SHED ITS REPUTATION AS SIMPLY A PRODUCER OF THICK REPORTS ON COMMUNICATIONS POLICY COMMERCE SECRETARY RON BROWN SAID IN AN INTERVIEW LAST WEEK THAT THE AGENCY WILL BE OF CRUCIAL IMPORTANCE TO HIS PLAN TO TURN THE DEPARTMENT INTO A TECHNOLOGICAL POWERHOUSE AND THAT TELECOMMUNICATIONS WILL HAVE A HIGH PROFILE IN THE PRESIDENT'S ECONOMIC PLAN MR IRVING IS AN AIDE TO CHAIRMAN EDWARD MARKEY D MASS OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE WHERE HE PLAYED A KEY PART IN LAST YEAR'S CABLE TELEVISION REREGULATION LAW AND THE CHILDREN'S TELEVISION ACT OF 1990 BEFORE JOINING THE SUBCOMMITTEE HE WAS LEGISLATIVE DIRECTOR AND COUNSEL TO REP MICKEY LELAND D TEXAS AND STARTED HIS CAREER IN WASHINGTON AS AN ASSOCIATE WITH THE LAW FIRM HOGAN & HARTSON 9302160185 930216 BELMAC HALTS TALKS INVOLVING PURCHASE OF 2 EUROPEAN FIRMS TAMPA FLA BELMAC CORP HALTED NEGOTIATIONS TO BUY TWO EUROPEAN PHARMACEUTICAL COMPANIES THE PHARMACEUTICAL COMPANY DISCOVERED REGULATORY AND PATENT ISSUES WE COULDN'T GET A COMFORT LEVEL ON SAID MICHAEL HARSHBARGER PRESIDENT AND CHIEF OPERATING OFFICER HE DECLINED TO ELABORATE THE COMPANY HAD SIGNED A LETTER OF INTENT IN NOVEMBER TO BUY ROSAPHYTOPHARMA A UNIT OF THE PRIVATE FRENCH CONCERN BOUCHERA AND BIOTEKFARMA AN ITALIAN COMPANY THE HALTED NEGOTIATIONS HAD NOTHING TO DO WITH ANY INABILITY TO FINANCE THE ACQUISITIONS NOTHING TO DO WITH OUR FINANCIAL STATUS MR HARSHBARGER SAID ANALYSTS SAID THEY EXPECT BELMAC TO RESUME ACQUISITION NEGOTIATIONS ESPECIALLY WITH THE ITALIAN COMPANY AT LOWER PRICE LEVELS BELMAC ALSO RELEASED EXPECTATIONS FOR FOURTHQUARTER RESULTS THAT WERE LOWER THAN ANALYSTS HAD EXPECTED THE COMPANY SAID IT EXPECTS TO REPORT A NET LOSS OF 128 MILLION OR 105 A SHARE THAT COMPARES WITH A LOSS OF 19 MILLION OR 22 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE IS EXPECTED TO HIT 5 MILLION COMPARED WITH 3 MILLION IN THE YEARAGO PERIOD THE COMPANY PREVIOUSLY SAID IT WOULD POST 72 MILLION IN NONRECURRING CHARGES FOR THE QUARTER IN TRADING FRIDAY ON THE AMERICAN STOCK EXCHANGE BELMAC CLOSED AT 425 DOWN 3125 CENTS THE COMPANY ATTRIBUTES MUCH OF ITS OPERATING LOSS TO MARKETING COSTS FOR THE ANTIBIOTIC BIOLID IN FRANCE ANALYSTS SAID THE COMPANY MADE MARKETING ERRORS IN INTRODUCING THAT PRODUCT THE COMPANY SOLD IT IN SACHETS RATHER THAN PILLS OR TABLETS RELIED ON A LARGE DIRECT MARKETING SALES FORCE AND INTRODUCED IT AT A PRICE FAR LOWER THAN ITS COMPETITION ANALYSTS SAID GARY DAVIS ANALYST WITH REICH & CO SAID THEY SPENT MUCH TOO MUCH MARKETING IT RELATIVE TO THE RETURN THEY GOT THE COMPANY HAS ALREADY TAKEN STEPS TO CHANGE ITS MARKETING STRATEGY IN FRANCE CUTTING ITS DIRECT SALES FORCE TO THREE FROM 55 MR HARSHBARGER SAID BELMAC'S STOCK HAS PREVIOUSLY BEEN HURT BY APPARENT DELAYS IN DEVELOPMENT OF BIOLID FOR THE US MARKET BELMAC'S LOSS ALSO REFLECTED AN EXPANSION OF ITS SALES FORCE IN SPAIN TO 60 FROM 40 AND THE COSTS OF LAUNCHING SEVERAL PRODUCTS THERE MR HARSHBARGER SAID ANALYSTS SAID THEY EXPECT RESULTS TO IMPROVE IN THE FIRST QUARTER REFLECTING THE IMPROVED COST STRUCTURE IN EUROPE THEY ALSO EXPECT THE COMPANY TO DEVELOP A BIOLID TABLET BY THE END OF THE SECOND QUARTER SEPARATELY BELMAC SAID A REGISTRATION STATEMENT IT FILED HAS BEEN DECLARED EFFECTIVE BY THE SECURITIES AND EXCHANGE COMMISSION AND THE COMPANY NOW EXPECTS TO HAVE RELEASED FROM ESCROW ABOUT 17 MILLION BEFORE INTEREST AND EXPENSES FROM A PRIVATE PLACEMENT IN OCTOBER TO HELP ITS PROFITABILITY BELMAC ALSO SAID IT DEVELOPED AN AUSTERITY PROGRAM WHICH INCLUDES SUBSTANTIAL SALARY CUTS FOR SENIOR EXECUTIVESEND 9302160184 930216 ACX TECHNOLOGIES HAD 198 MILLION LOSS IN THE FOURTH QUARTER GOLDEN COLO ACX TECHNOLOGIES INC REPORTED WIDER LOSSES IN ITS CERAMICS AND ALUMINUM OPERATIONS AND LOWER PROFIT IN ITS PACKAGING OPERATIONS FOR THE FOURTH QUARTER COMPARED WITH THE YEAR BEFORE IN THE COMPANY'S FIRST EARNINGS REPORT SINCE IT WAS SPUN OFF FROM ADOLPH COORS CO IN DECEMBER ACX SAID IT HAD A LOSS OF 198 MILLION OR 158 A SHARE COMPARED WITH A PROFORMA LOSS OF 28 MILLION IN THE YEAREARLIER FOURTH QUARTER NET SALES DECLINED SLIGHTLY TO 1222 MILLION FOR THE 12WEEK PERIOD ENDED DEC 27 FROM 1223 MILLION THE YEAR BEFORE THE 1992 FOURTH QUARTER INCLUDED AN AFTERTAX RESTRUCTURING CHARGE OF 86 MILLION OR ABOUT 68 CENTS A SHARE FOR COSTS ASSOCIATED WITH THE SPINOFF FOR THE YEAR THE COMPANY REPORTED A NET LOSS OF 337 MILLION OR 268 A SHARE COMPARED WITH NET INCOME OF 13 MILLION FOR 1991 SALES INCREASED TO 5708 MILLION FROM 5435 MILLION THE 1992 RESULTS INCLUDED A LOSS OF 124 MILLION FROM ACCOUNTING CHANGES THE COMPANY SAID ITS STARTUP COSTS AT ITS ALUMINUM UNIT FOR A NEW MILL IN SAN ANTONIO WERE ABOUT 201 MILLION FOR THE YEAR ACX IS STILL ENGAGED IN QUALIFYING THAT MILL FOR COMMERCIAL PRODUCTION A PROCESS THAT THE COMPANY EXPECTS TO BE COMPLETE IN THE FIRST QUARTER OF 1993 AT THAT TIME THE ALUMINUM UNIT WILL BEGIN TAKING ORDERS AND SELLING ALUMINUM SHEET FULLYEAR EARNINGS AT THE PACKAGING UNIT WHICH MAKES MOISTUREBARRIER PACKAGES FOR CONSUMER GOODS ROSE 17 ALTHOUGH PROFIT DECLINED IN THE FOURTH QUARTER IN THE YEAREARLIER FOURTH QUARTER SALES AND EARNINGS WERE BOOSTED BY PACKAGING DEMAND FROM THE INTRODUCTION OF CONCENTRATED LAUNDRY DETERGENTS THE COMPANY SAID THE CERAMICS UNIT'S OPERATING PROFIT ROSE 52 FOR THE YEAR THE RESULT OF IMPROVEMENTS IN THE ECONOMY HAROLD SMETHILLS ONE OF THE COMPANY'S THREE PRESIDENTS SAID ACX EXPECTS TO BEGIN RECEIVING BENEFITS IN 1993 FROM THE RESTRUCTURING AND RECAPITALIZATION DONE IN THE PAST YEAR INCLUDING BENEFITING FROM LOWER INTEREST COSTS