JAKARTA INDONESIA DEPOSITORS OF CLOSED PT BANK SUMMA WILL BE ABLE TO RECEIVE 50 OF THEIR MONEY STARTING NEXT MONDAY BANK INDONESIA GOV ADRIANUS MOOY SAID THE CENTRAL BANK HEAD SAID THAT CUSTOMERS WILL GET THE HALFPAYMENTS AT BRANCHES OF TWO STATE BANKS DEPOSITORS COULD RECEIVE MORE AFTER THE SOERYADJAYA FAMILY OWNERS OF BANK SUMMA SELL MORE ASSETS TO COVER THEIR DEBTS BUT HE MADE NO PROMISES ABOUT HOW MUCH MORE CUSTOMERS COULD GET OR HOW SOON THE 50 PAYMENT COMES FROM THE PROCEEDS OF THE SOERYADJAYAS' SALE IN JANUARY OF 100 MILLION SHARES OF PT ASTRA INTERNATIONAL WHILE THE SALE WAS VALUED AT ONE TRILLION RUPIAH 4854 MILLION THE NET PROCEEDS GIVEN TO BANK SUMMA'S LIQUIDATORS WERE 460 BILLION RUPIAH THE REST REPAID A LOAN MADE TO THE FAMILY BY THREE BANKS 9302160182 930216 CLINTON WON'T SEEK WEAKER BANK LAWS AS MEANS TO SPUR INCREASE IN LENDING BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FACING A CONGRESSIONAL COUNTERATTACK AGAINST THE BANKING INDUSTRY'S PLEAS FOR REGULATORY RELIEF WILL CONCENTRATE ON ADMINISTRATIVE RATHER THAN LEGISLATIVE EFFORTS TO INCREASE BANK LENDING PRESIDENT CLINTON HAS CALLED FOR A REVIEW OF REGULATIONS THAT IMPEDE BANKS FROM MAKING SOUND LOANS PARTICULARLY TO SMALL BUSINESS HE MAY ANNOUNCE A FORMAL REVIEW IN HIS ECONOMIC ADDRESS TOMORROW BUT WON'T COMMIT TO ASKING CONGRESS TO CHANGE BANK LAWS SOME CONGRESSIONAL DEMOCRATS HAVE WARNED THE ADMINISTRATION AGAINST ACCEPTING BANKING INDUSTRY REQUESTS TO WEAKEN OR DELAY SECTIONS OF A 1991 LAW THAT TIGHTENED REGULATION A NEW CONGRESSIONAL STUDY DISPUTES BANKING INDUSTRY ASSERTIONS THAT TIGHTER REGULATION IS CRAMPING LENDING AND CAUSING A CREDIT CRUNCH AFTER ANALYZING THE RELATIONSHIP BETWEEN BANK LENDING AND THE FINANCIAL SOUNDNESS OF BANKS THE CONGRESSIONAL BUDGET OFFICE SAID THAT STRONG BANKS INCREASED THEIR LENDING 31 A YEAR FROM 1990 THROUGH THE SECOND QUARTER OF 1992 WHILE WEAK BANKS DECREASED THEIR LENDING 36 A YEAR OVER THE WHOLE PERIOD TOTAL BANK LENDING EXPANDED AT THE RATE OF 11 ANNUALLY ALTHOUGH ACTIVITY DECLINED IN NEW ENGLAND AND OTHER REGIONS WITH UNUSUALLY LARGE NUMBERS OF WEAK BANKS THE STUDY SAID THE AVAILABILITY OF BANK LOANS IN ANY REGION OF THE COUNTRY IS LIKELY TO BE ASSOCIATED WITH THE NUMBER AND SIZE OF WEAK BANKS IN THAT REGION THE CBO STAFF STUDY CONCLUDED HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS WHO ASKED FOR THE STUDY SAID THE CONCLUSION PUTS ONE MORE CHINK IN THE ARMOR OF THOSE ARGUING THAT BANKS ARE NOT LENDING DUE TO EXCESSIVE GOVERNMENT REGULATION IN FACT THE CBO STUDY SAID TO THE EXTENT THAT RECENT REGULATION AND LEGISLATION HAVE STRENGTHENED THE BANKING SYSTEM THEY ARE MORE LIKELY TO HAVE INCREASED THE ABILITY OF BANKS TO SUPPORT ECONOMIC RECOVERY THAN TO HAVE HAMPERED IT THE TOUGHER REGULATION IN THE 1991 BANKING LAW CAME IN RETURN FOR AN INCREASE IN THE TREASURY'S LINE OF CREDIT TO THE BANK DEPOSIT INSURANCE FUND WHICH WAS ON THE BRINK OF RUNNING OUT OF MONEY BECAUSE MANY BANKS WERE FAILING THIS YEAR HOWEVER BANK PROFITS ARE RUNNING AT RECORD LEVELS BUT BANKS ARE STILL COMPLAINING THAT THEY ARE SADDLED WITH COSTLY NEW PAPERWORK AND OTHER REQUIREMENTS THAT ARE MAKING IT DIFFICULT TO LEND THE CBO STUDY CONCLUDES THAT TO THE EXTENT BANK REGULATION INCREASES THE NUMBER OF STRONG BANKS THOSE WITH HIGHER CAPITAL AND RELATIVELY SMALL HOLDINGS OF BAD LOANS IT ACTUALLY ENCOURAGES LENDING IN PARTICULAR THE REPORT REFUTES CALLS BY REAL ESTATE AND OTHER BORROWER GROUPS URGING LOWER CAPITAL REQUIREMENTS AS A WAY TO SPUR LENDING ANALYSIS SUGGESTS THAT RELAXING CAPITALIZATION STANDARDS FOR STRONG INSTITUTIONS WOULD HAVE LITTLE EFFECT ON THEIR LENDING THE REPORT SAID AND IT ADDED THAT EASING REGULATION ON WEAK BANKS COULD RESULT IN MORE COSTLY BANK FAILURES AND CREATE ADDITIONAL CLAIMS ON THE BANK INSURANCE FUND THE REPORT SAID THAT AREAS WITH THE LARGEST PROPORTION OF WEAK BANKS NEW ENGLAND THE MIDATLANTIC STATES THE SOUTHWEST AND THE WEST FACED THE TOUGHEST CREDIT CONDITIONS WHILE CREDIT WAS MORE AVAILABLE IN AREAS WITH STRONG BANKS THE CENTRAL STATES THE MIDWEST AND THE SOUTHEAST THE STUDY IS JUST ONE PART OF AN EFFORT BY REP GONZALEZ TO DEFLECT THE BANKING INDUSTRY'S CALL FOR REGULATORY RELIEF TODAY THE GENERAL ACCOUNTING OFFICE THE AUDIT ARM OF CONGRESS WILL RELEASE REPORTS RAISING QUESTIONS ABOUT THE QUALITY OF FEDERAL BANK AND THRIFT EXAMINATIONS CHARLES BOWSHER THE COMPTROLLER GENERAL STRONGLY SUPPORTS THE 1991 BANKING LAW ON FRIDAY KENNETH GUENTHER EXECUTIVE VICE PRESIDENT OF THE INDEPENDENT BANKERS ASSOCIATION URGED MR CLINTON TO EXERT GREATER CONTROL OVER BANK REGULATION THE CONGRESS WORKING WITH THE GAO CANNOT AND SHOULD NOT MICROMANAGE BANK REGULATION HE TOLD A MEETING OF BANKERS IN ATLANTA MR BOWSHER LIKE MR GONZALEZ AND SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH HAS SAID HE FAVORS A CONSOLIDATION OF BANK REGULATORY AGENCIES AS A WAY TO END COSTLY OVERLAPPING PAPERWORK AND REPORTING REQUIREMENTS ON BANKS THIS IS A CHANGE THE ADMINISTRATION MAY ALSO SUPPORT 9302160181 930216 MARKETING & MEDIA NBC HIRES 2 LAWYERS TO CONDUCT PROBE OF GM CONTROVERSY NEW YORK NBC HAS RETAINED TWO OUTSIDE LAWYERS TO CONDUCT A FORMAL REVIEW OF THE CONTROVERSY SURROUNDING ITS BROADCAST OF A RIGGED CRASH DEMONSTRATION DURING A DATELINE NBC REPORT ABOUT EXPLODING GAS TANKS IN SOME GENERAL MOTORS CORP PICKUP TRUCKS NBC NEWS PRESIDENT MICHAEL GARTNER TOLD A STAFF MEETING FRIDAY THAT THE GENERAL ELECTRIC CO UNIT HAD RETAINED ROBERT S WARREN A SENIOR PARTNER AT GIBSON DUNN & CRUTCHER AND LEWIS B KADEN A PARTNER AT DAVIS POLK & WARDWELL TO DO A THOROUGH REVIEW OF WHAT HAPPENED AND WHY ON THE PROGRAM WHICH AIRED NOV 17 NBC LAST WEEK SETTLED A SUIT FILED BY GM OVER THE REPORT AND SAID IT ERRED BY USING IGNITERS IN ITS STAGED CRASHES AMONG THE ISSUES EXPECTED TO BE INVESTIGATED ARE HOW THE CRASH DEMONSTRATION CAME ABOUT WHY VIEWERS WEREN'T TOLD THAT TOY ROCKET ENGINES HAD BEEN USED TO SIMULATE SPARKS THAT MIGHT OCCUR IN A REAL CRASH AND HOW NBC NEWS INTERNALLY HANDLED GM'S SUBSEQUENT COMPLAINTS ABOUT THE REPORT MR GARTNER USED THE STAFF MEETING TO REMIND EMPLOYEES OF NBC NEWS STANDARDS BUT HE ALSO TOLD THEM THAT THE DIVISION HAD TO MOVE ON AFTER THE DEMORALIZING EPISODE ADDING WE CAN'T LET OURSELVES BE DEFINED BY 57 SECONDS THE LENGTH OF THE CONTROVERSIAL VIDEO 9302160180 930216 LEISURE & ARTS ON SPORTS EVEN AT HOME AGE PLAGUES THE CHAMPS BY FREDERICK C KLEIN CHICAGO IT IS THE FATE OF CHAMPION TEAMS TO HAVE THERMOMETERS THRUST INTO THEIR MOUTHS IF THEY ARE PLAYING LESS THAN PERFECTLY DURING THE SEASONS OF THEIR TITLE DEFENSES BUT AS RECENTLY AS A WEEK AGO THE CHICAGO BULLS THOUGHT THEY HAD DISCARDED THE STATUS OF PATIENT THE TWOTIME NATIONAL BASKETBALL ASSOCIATION LEADERS IN TEESHIRT SALES AND VICTORIES HAD WON FIVE STRAIGHT GAMES TO END AN ARDUOUS WESTERN ROAD TRIP AND WERE LOOKING CHIPPER AFTER SOME EARLIER MALAISE ALL THEY NEEDED TO TEAR UP THEIR BLUE CROSS CARDS ALTOGETHER WERE WEEKEND WINS AGAINST EASTERN CONFERENCERIVALS NEW YORK KNICKS AND CLEVELAND CAVALIERS IN THEIR CHICAGO STADIUM BASE WHERE THEY HAD BEATEN THOSE GANGS 15 TIMES IN 16 REGULARSEASON OPPORTUNITIES OVER THE LAST FOUR CAMPAIGNS BUT ON FRIDAY NIGHT THE NASTY KNICKS OUTCLAWED THE BULLS 10498 AND ON SATURDAY NIGHT THE COLTISH CAVS OUTRACED 'EM 116111 AND QUICKER THAN YOU CAN SAY 911 THE MEDICS AGAIN HOVERED OH YES EVERYONE AGREED THE FACT THAT MICHAEL JORDAN DIDN'T PLAY FRIDAY DUE TO A ONEGAME SUSPENSION FOR PUNCHING REGGIE MILLER OF THE INDIANA PACERS IN A GAME THE PREVIOUS WEDNESDAY MILLER SHOVED JORDAN FIRST FILMS SHOWED GAVE THE BULLS AN EXCELLENT EXCUSE FOR THEIR LOSS TO NEW YORK AND THE INJURYCAUSED ABSENCE OF CENTER BILL CARTWRIGHT DIDN'T HELP THEIR CAUSE AGAINST CLEVELAND BUT LOCKERROOM CHEER WAS HARD TO FIND YOU CAN ACCEPT LOSING TWO ON THE ROAD BUT AT HOME IT'S TOUGH TO TAKE MUTTERED HIS HIGHNESS MICHAEL AFTER THE SATURDAY DEBACLE WE'VE GOT TO GET MOTIVATED AGAIN IT EASILY COULD BE ARGUED THAT EXCESSIVE GLOOM DOES NOT FIT A SQUAD WHOSE WONLOST RECORD WAS A MORETHANRESPECTABLE 3317 THROUGH SUNDAY AND GOOD ENOUGH TO TOP THE NBA'S CENTRAL DIVISION BY 1 1/2GAMES OVER CLEVELAND MOREOVER THE REMAINDER OF THE BULLS' SCHEDULE IS HEAVY WITH HOME GAMES AND BOTTOMTIER FOES SO IMPROVEMENT ISN'T UNLIKELY YET IN ZIPPING THROUGH THE 199091 CAMPAIGN WITH A 6121 RECORD AND 152 PLAYOFF MARK AND UPPING THEIR REGULARSEASON WIN TOTAL TO 67 LAST SEASON THE CHICAGOANS PLAYED WITH SUCH PANACHE THAT ANY LETDOWN SEEMED REMOTE WATCHING THEM ON TELEVISION THOSE YEARS MADE PEOPLE THINK THEIR SETS HAD SOMEHOW JAMMED ON FASTFORWARD IN TRUTH THOUGH THOSE BULLS' TEAMS HAD GOOD LUCK WITH INJURIES AND A CENTER WHOSE KNEES WERE GETTING CREAKIER BY THE STEP AND IN THE LAST OFFSEASON TEAM MANAGEMENT CHOSE TO SHORE UP THEIR BENCH BY ADDING THE LIKES OF TRENT TUCKER A 33YEAROLD GUARD AND FORWARD RODNEY MCCRAY 31 PLUS A COUPLE WEEKS AGO DARRELL WALKER A GUARD WHO'S ALMOST 32 LOOKED AT ONE WAY THOSE GUYS ARE EXPERIENCED LOOKED AT ANOTHER THEY'RE OLD FINALLY THE BULLS' ACES JORDAN AND FORWARD SCOTTIE PIPPEN SPENT THE SUMMER DREAM TEAMING AT THE BARCELONA OLYMPICS AND RETURNED SAYING THEY'D BEEN DRAINED IN SPAIN PIPPEN'S COMPLAINT IS AN ANKLE THAT'S NEVER HEALED PROPERLY FROM AN INJURY SUSTAINED IN LAST JUNE'S NBA PLAYOFFS JORDAN HAS BEEN LAUNCHING FEWER HIGHLIGHTFILM FORAYS TO THE BASKET THAN IN SEASONS PAST CONTENTING HIMSELF WITH OUTSIDE SHOTS INSTEAD THE BULLS' INJURY LIST IS HEADED BY THE VETERAN JOHN PAXSON JORDAN'S LONGTIME BACKCOURT MATE AND THE TEAM'S HIGHESTPERCENTAGE OUTSIDE SHOOTER HE HAD ONE ROUND OF KNEE SURGERY IN THE OFFSEASON AND ANOTHER ON FEB 2 MCCRAY SIGNED TO BACK UP PIPPEN AND HORACE GRANT SHOWED UP COMPLAINING OF PAST AILMENTS THEN DEVELOPED A NEW ONE HE'S BEEN OUT FOR ALMOST A MONTH WITH A SURGICAL KNEE THE GUY THE BULLS MISS MOST PLAYED DAILY UNTIL STRAINING A BACK MUSCLE FRIDAY NIGHT 7FOOT1 CENTER CARTWRIGHT AN UNSUNG TYPE IF THERE EVER WAS ONE BEARDED BILL'S ERECTORSET JUMP SHOT DRAWS GUFFAWS BUT HIS ABILITY TO PUSH AND SHOVE WITH OTHER TEAMS' BIG MEN ANCHORED CHICAGO'S INTERIOR DEFENSE IN ITS CHAMPIONSHIP YEARS BUT THIS SEASON PLAGUED BY TENDINITIS IN HIS 35YEAROLD KNEES IT'S CALLED THE NBA DISEASE CARTWRIGHT'S PLAYING MINUTES HAVE PLUMMETED AND FOEMEN HAVE FATTENED THEMSELVES AT HIS AND HIS REPLACEMENTS' EXPENSE HAKEEM OLAJUWON THE HOUSTON ROCKETS' CENTER HAD 18 POINTS AND 17 REBOUNDS WHEN HIS TEAM BEAT THE BULLS ON JAN 28 DENVER'S DIKEMBE MUTOMBO HAD 29 AND 22 RESPECTIVELY IN THE NUGGETS'S UPSET WIN TWO NIGHTS LATER WHAT BILL'S ILLS MEAN TO THE BULLS WAS ILLUSTRATED ANEW ON FRIDAY WHEN THE KNICKS VISITED DESPITE JORDAN'S ABSENCE CHICAGO BATTLED THE ATLANTIC DIVISION LEADERS EVENLY THROUGH THREE QUARTERS AND LED 7574 AT THE START OF THE FOURTH BUT WITH CARTWRIGHT OUT IN THE LAST PERIOD OF A TYPICALLY ROUGH CHICAGONEW YORK BATTLE BIG PATRICK EWING SCORED 12 OF HIS GAMEHIGH 36 POINTS INCLUDING THE STUFF THAT GAVE HIS TEAM AN EIGHTPOINT LATE LEAD AND THE KNICKS PREVAILED SATURDAY'S CONTEST WAS QUITEDIFFERENT IN FORMAT IF NOT RESULT THE CAVALIERS PREFER A FREEWHEELING OPENCOURT GAME MUCH LIKE THE BULLS FAVOR AND THE BULLS HAVE DONE IT BETTER IN MOST MEETINGS PAST THIS TIME THOUGH THE VISITORS HAD OPEN SHOTS EVERYWHERE AND WHILE CENTER BRAD DAUGHERTY LED THEIR SCORING WITH 25 POINTS IN CARTWRIGHT'S CONTINUING ABSENCE JORDAN ALSO HAD 25 THE KILLING BASKETS WERE THREEPOINTERS BY CRAIG EHLO MARK PRICE AND DANNY FERRY THAT TRIO HIT ON 10 OF 16 LONGRANGE ATTEMPTS OR A HIGHER PROPORTION 625 THAN THEIR TEAM'S CLOSERIN SHOTS 59 ONE OF THE TREYS WAS A HALFCOURT HEAVE BY EHLO AT THE FIRSTQUARTER BUZZER ANOTHER BY THE BLOND BOMBER FROM THE LEFTBASELINE CORNER WITH 47 SECONDS REMAINING BROKE A 111111 TIE I HAVEN'T BEEN SO DISAPPOINTED WITH OUR DEFENSE IN A LONG TIME BULLS' COACH PHIL JACKSON SAID LATER WE LACKED BOTH ENERGY AND DIRECTION THE BULLS' BESTCASE SCENARIO HAS THE TEAM OVERCOMING THE BLAHS BY PLAYOFF TIME PIPPEN PAXSON AND MCCRAY HALE AND CARTWRIGHT RESTED ENOUGH TO MAUL AS IN DAYS OF OLD BUT WITH JORDAN TURNING 30 TOMORROW AGE DOESN'T SEEM TO BE MERELY CREEPING UP ON THE CHAMPS IT'S RACING THEM AND GAINING 9302160179 930216 WHO'S NEWS NWNL COS NWNL COS MINNEAPOLIS JOHN G TURNER 54YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS INSURANCE HOLDING CONCERN SUCCEEDING JOHN E PEARSON WHO RETIRED JAN 31 9302160178 930216 WHO'S NEWS SANWA BANK LTD SANWA BANK LTD TOKYO WILLIAM E MOELLER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SANWA BUSINESS CREDIT CORP CHICAGO A COMMERCIAL FINANCE AND LEASING UNIT OF THIS JAPANESE BANKING COMPANY MR MOELLER 50 SUCCEEDS BERNARD J MCKENNA 59 WHO IS RETIRING AND WILL REMAIN A DIRECTOR 9302160177 930216 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS FEB 16MARCH 1 MOMA'S PHOTOGRAPHY GALLERIES HAVE BEEN COMPLETELY REINSTALLED AND NEARLY 200 PICTURES ARE ON VIEW MANY OF WHICH ARE BEING EXHIBITED FOR THE FIRST TIME OR THE FIRST TIME IN MANY YEARS ALSO IN THE TEMPORARYEXHIBITIONS GALLERY THROUGH APRIL 6 ARE 30 OR SO OF THE 300 PHOTOGRAPHS ACQUIRED BY THE MUSEUM IN THE PAST YEAR AND A HALF MUSEUM OF MODERN ART 11 WEST 53RD ST 212 7089400 THE CENTER FOR AFRICAN ART HAS CHANGED ITS NAME AND MOVED TO NEW LARGER QUARTERS IN SOHO IT INAUGURATES ITS NEW SPACE WITH THIS EXHIBITION OF ABOUT 100 MASKS FIGURES TEXTILES ARCHITECTURAL SCULPTURES AND RELIQUARY OBJECTS THAT CONCEAL AND REVEAL BY CODING KNOWLEDGE ATTRACTING ATTENTION TO SECRET REALMS DISTRACTING VIEWERS AWAY FROM SECRET PLACES OR CONTAINING AND ENCLOSING SECRET THINGS THE MUSEUM FOR AFRICAN ART 593 BROADWAY BETWEEN HOUSTON AND PRINCE THROUGH AUG 15 212 9661313 EIGHTY PAINTINGS AND 20 NAUTICAL OBJECTS DATING FROM THE 16TH THROUGH THE LATE 19TH CENTURIES ON LOAN FROM THE NATIONAL MARITIME MUSEUM OF GREENWICH ENGLAND HIGHLIGHTS INCLUDE JMW TURNER'S MONUMENTAL 1823 MASTERPIECE THE BATTLE OF TRAFALGAR THE SIR JOSHUA REYNOLDS PORTRAIT COMMODORE AUGUSTUS KEPPEL 1753/4 A CHRONOMETER OWNED BY THE BOUNTY'S CAPTAIN WILLIAM BLIGH AND A SUNDIAL/COMPASS USED BY SIR FRANCIS DRAKE ON HIS TRIP AROUND THE GLOBE IN 1577 THE 26TH EDITION OF THIS ANNUAL FAIR FEATURES OLD AND RARE BOOKS MANUSCRIPTS PRINTS AND MAPS DATING FROM THE 15TH CENTURY ONWARD OF SPECIAL INTEREST THIS YEAR IS A VERY STRANGE BOOKS EXHIBIT A DISPLAY OF BOOKS THAT ARE ABOUT BIZARRE SUBJECTS HOW TO COOK HUSBANDS KNIFE THROWING AS A MODERN SPORT THAT ARE PARTICULARLY POLITICALLY CORRECT THAT HAVE UNUSUAL PRINT OR BINDING OR THAT HAVE TITLES THAT ARE SUGGESTIVE OR CONTAIN DOUBLE ENTENDRES OUT WITHOUT MY RUBBERS THREE BOOBIES INTERVIEWED FAIRGOERS ALSO CAN SEE DEMONSTRATIONS OF PAPER MAKING PAPER MARBLING AND BOOKBINDING SAN FRANCISCO CONCOURSE EIGHTH AND BRANNAN STREETS FEB 19 20 AND 21 415 4950100 TAKING ON A DRAMATIC PART NEARLY IMPOSSIBLE TO CAST THESE DAYS KRISTJAN JOHANNSSON MAKES HIS DEBUT AS MANRICO THE TROUBADOUR IN VERDI'S IL TROVATORE APRILE MILLO SINGS LEONORA DOLORA ZAJICK CHEWS SCENERY AS AZUCENA AND VLADIMIR CHERNOV COMPETES AS COUNT DI LUNA FEB 16 20 24 AND 27 THE LAST TWO WITH ALTERNATE CASTS NELLO SANTI CONDUCTS ALSO ON THE PROGRAM THESE DAYS IS A REVIVAL OF THE COMPANY'S PICTURESQUE PRODUCTION OF PUCCINI'S LA FANCIULLA DEL WEST WITH GHENA DIMITROVA AS MINNIE AND NICOLA MARTINUCCI AS THE BANDIT FEB 22 26 MARCH 2 6 9 12 15 WITH CAROL NEBLETT AS MINNIE AND 19 CHRISTIAN BADEA CONDUCTS METROPOLITAN OPERA HOUSE LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS 212 3626000 MARTA DOMINGO MAKES HER LOCAL DIRECTING DEBUT WITH VERDI'S RIGOLETTO STARRING JUSTINO DIAZ AS THE WAILING HUNCHBACK ANN PANAGULIAS AND RICHARD LEECH SING GILDA AND THE DUKE THE CONDUCTOR IS SURPRISE PLACIDO DOMINGO HUSBAND OF MARTA DOROTHY CHANDLER PAVILION 135 N GRAND AVE FEB 27 MARCH 2 6 10 14 AND 16 RANDALL BEHR CONDUCTS THE LAST THREE PERFORMANCES FOR INFORMATION 213 9727211 FOR TICKETS 213 4803232 LEOS JANACEK'S ANIMALKINGDOM FANTASY THE CUNNING LITTLE VIXEN ARRIVES AT THE KENNEDY CENTER IN A PRODUCTION BORROWED FROM COVENT GARDEN CHRISTOPHER KEENE CONDUCTS A CAST INCLUDING MARY MILLS STEPHEN WEST AND DANA KRUEGER KENNEDY CENTER OPERA HOUSE FEB 27 MARCH 1 3 6 9 12 AND 14 LOCALLY 202 4167800 ELSEWHERE 180087OPERA 9302160176 930216 QUALCOMM PLANS TO BUY SITE SAN DIEGO QUALCOMM INC SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT SIGNED A LETTER OF INTENT TO PURCHASE A 22 MILLION SITE IN SAN DIEGO A SPOKESMAN FOR THE DIGITAL WIRELESS TECHNOLOGY CONCERN SAID QUALCOMM WILL SPEND 6 MILLION TO IMPROVE THE SITE BEFORE TRANSFERRING CORPORATE HEADQUARTERS TO IT BY SUMMER 1993 9302160175 930216 UTILITY AVERAGE IS AUGURING LOWER RATES BELIEVERS CLAIM BY ANITA RAGHAVAN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WANT TO KNOW WHAT'S REALLY GOING TO HAPPEN TO INTEREST RATES FORGET THE ECONOMISTS AND WATCH THE DOW JONES UTILITY AVERAGE YES THE DOWDY UTILITY AVERAGE THAT AT LEAST IS WHAT SOME WALL STREET SOOTHSAYERS SAY THE INDEX WHICH MEASURES THE STOCKPRICE CHANGES OF 11 ELECTRIC UTILITIES AND FOUR NATURAL GAS COMPANIES TENDS TO ANTICIPATE MAJOR CHANGES IN INTEREST RATE CYCLES OFTEN BY JUST A FEW DAYS THESE ANALYSTS BELIEVE IF THEY ARE RIGHT INTEREST RATES ARE HEADED STILL LOWER AND THAT SHOULD BE GOOD NEWS FOR STOCK PRICES AS LOWER RATES ARE OFTEN THE ENGINE FOR HIGHER STOCK PRICES THE UTILITY AVERAGE IS A VERY GOOD EARLYWARNING SYSTEM AND RIGHT NOW THE SIGNAL IS ALL SYSTEMS GO SAYS GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG TWO WEEKS AGO JUST AS THE DOW JONES INDUSTRIAL AVERAGE AND THE STANDARD & POOR'S 500STOCK INDEX SMASHED THROUGH THEIR PREVIOUS RECORD HIGHS THE UTILITY AVERAGE BARRELED HIGHER TOO MS DUDACK SAYS THAT WHEN THE UTILITY AVERAGE RACES TO NEW CYCLICAL HIGHS THE STOCK MARKET IS ABOUT FIVE MONTHS AWAY FROM A SIGNIFICANT MARKET PEAK INDEED SHE POINTS OUT THAT IN THE PAST 12 STOCK MARKET PEAKS THE UTILITY AVERAGE HAS BEEN A LEADING INDICATOR 11 OUT OF 12 TIMES ON FRIDAY THE UTILITY AVERAGE SLIPPED 013 TO 23216 BUT SINCE THE START OF THE YEAR THE INDEX HAS RALLIED 5 OUTPERFORMING THE DOW JONES INDUSTRIALS AND THE S&P 500 THE RISE IN THE UTILITY INDEX REFLECTS THE SENTIMENT OF EQUITY INVESTORS THAT BOND YIELDS MAY DROP SOON SAYS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS LAST WEEK MR SHULMAN ADVISED CLIENTS TO BOOST THE PORTION OF THEIR ASSETS IN BONDS TO 40 FROM 35 ONE OF THE MAIN REASONS UTILITY STOCKS ARE A CLOSELY WATCHED BAROMETER OF INTEREST RATES IS THAT MANY MONEY MANAGERS USE THESE STOCKS AS SURROGATES FOR BONDS BECAUSE UTILITIES PAY HIGH DIVIDENDS THEY ARE OFTEN ATTRACTIVE TO CONSERVATIVE YIELDORIENTED INVESTORS WHO ALSO BUY BONDS WHEN INVESTORS EXPECT INTEREST RATES TO FALL THEY BID UP UTILITY STOCKS BETTING THAT A DROP IN BOND YIELDS WILL MAKE THESE STOCKS MORE COMPETITIVE INVESTMENTS THE UTILITY SHARES DON'T WAIT FOR THE BOND MARKET SAYS MR SHULMAN OF SALOMON THEY TRY TO ANTICIPATE THE BOND MARKET NOT ALL INVESTMENT PROFESSIONALS GIVE THE UTILITY AVERAGE SO MUCH CREDIT SOME CAUTION THAT INVESTORS SHOULDN'T RELY ON THE UTILITY AVERAGE ALONE OTHERS SAY NOT TO USE IT AT ALL I THINK THE UTILITY AVERAGE IS UTTERLY USELESS IN FORECASTING RATES SAYS JIM SOMERS A BOND PORTFOLIO MANAGER IN RADNOR PA MR SOMERS SCOFFS THAT THE ALLEGED LINK BETWEEN THE UTILITY AVERAGE AND INTEREST RATES PROBABLY HAS LESS JUSTIFICATION THAN A THEORY THAT WOULD DRAW A CORRELATION BETWEEN SUN SPOT ACTIVITY AND ECONOMIC ACTIVITY EVEN IF THE THEORY IS JUSTIFIED PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES RECKONS IT WON'T BE RIGHT THIS TIME HE NOTES THAT THE BOND MARKET HAS BEEN UNCHARACTERISTICALLY CHEERFUL IN RECENT WEEKS RALLYING IN THE FACE OF A STRONGER ECONOMY BUT HE BELIEVES PRESIDENT CLINTON'S ADDRESS TOMORROW NIGHT ON HIS ECONOMIC PLANS WILL BRING THE BOND MARKET BACK TO ITS SENSES MANY OF THE PROPOSALS MR CLINTON IS LIKELY TO UNVEIL SUCH AS A FISCAL STIMULUS PACKAGE AND INVESTMENT TAX CREDITS ARE UNHEALTHY FOR THE BOND MARKET MR CANELO SAYS WHAT'S MORE MR CANELO SAYS THAT SOME COMMODITY PRICES WHICH ARE OFTEN A HARBINGER OF INFLATIONARY PRESSURES HAVE BEEN RISING IN RECENT WEEKS I AM A LITTLE NERVOUS ABOUT THE STOCK MARKET BUT I AM TERRIFIED ABOUT THE BOND MARKET HE SAYS TO SOME EXTENT THE PROFESSIONAL VIEW ON THE UTILITY AVERAGE SEEMS TO DEPEND ON WHETHER THE PRO IN QUESTION TRADES STOCKS OR BONDS THOSE IN THE STOCK MARKET TEND TO SEE THE UTILITY AVERAGE AS A LEADING INDICATOR OF INTEREST RATES BOND TRADERS SAY THE INDEX TENDS TO MOVE WITH RATHER THAN AHEAD OF INTEREST RATES THE REAL ISSUE IS ARE THE BOND GUYS SMARTER OR ARE THE STOCK GUYS SMARTER SAYS JEFF KOCH A PORTFOLIO MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT INC OF MILWAUKEE BEING A BOND GUY HE SAYS WITH A CHUCKLE I WOULD SAY THE BOND GUYS ARE SMARTER BUT RECENTLY PEOPLE WHO BET ON THE UTILITY AVERAGE HAVE LOOKED PRETTY SMART AFTER FALLING STEADILY IN SEPTEMBER THE AVERAGE STARTED BOTTOMING OUT IN THE MIDDLE OF OCTOBER EVEN AS FEARS THAT A DEMOCRAT IN THE WHITE HOUSE WOULD SPELL DOUBLEDIGIT INFLATION WERE ROILING THE BOND MARKET ON NOV 6 TWO DAYS AFTER THE ELECTION THE TREASURY'S 30YEAR BOND CLOSED AT 776 ITS HIGHEST LEVEL IN MONTHS THE UTILITY AVERAGE MEANWHILE FINISHED AT 21751 UP ALMOST 13 FROM ITS OCTOBER LOW THEN BOND PRICES STARTED RISING AND YIELDS BEGAN THEIR CHOPPY DESCENT FALLING TO 739 BY YEAR END THREE TO FOUR WEEKS AFTER THE UTILITY AVERAGE PUT IN A BASE THE BOND MARKET PUT IN A BASE AND STARTED RALLYING SAYS JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG RIGHT NOW MR LIRO THINKS THE RALLY IN UTILITY STOCKS IS SENDING A SIMILAR MESSAGE TO BOND INVESTORS WE MAY HAVE A LITTLE INDIGESTION IN THE BOND MARKET BECAUSE OF THIS REFUNDING BUT BOND PRICES ARE WELLPOSITIONED TO MAKE ANOTHER ATTACK AT NEW HIGHS HE SAYS TIMOTHY E KEEFE AN INVESTMENT ANALYST SPECIALIZING IN UTILITY STOCKS AND CONVERTIBLE BONDS AT PITTSBURGHBASED FEDERATED INVESTORS AGREES IT SEEMS THAT OVER THE PAST FOUR OR FIVE YEARS THE YIELDS ON THE ELECTRIC UTILITIES HAVE DEFINITELY ANTICIPATED DROPS IN LONGTERM TREASURY RATES SAYS MR KEEFE AND IT SEEMS THAT NOW THE SAME THING IS HAPPENING MR KEEFE SAYS THE UTILITY AVERAGE IS RUNNING AHEAD OF THE BOND MARKET ANTICIPATING A 020 PERCENTAGE POINT DROP IN LONGBOND YIELDS SOME ANALYSTS SUCH AS STAN WEINSTEIN EDITOR OF THE PROFESSIONAL TAPE READER RELY ON THE UTILITY AVERAGE MORE FOR DIVINING THE COURSE OF STOCK PRICES THAN FOR PREDICTING INTEREST RATES THAT'S BECAUSE WHEN UTILITY STOCKS ARE RISING IT'S A SIGN THAT INVESTORS EVEN CONSERVATIVE YIELDORIENTED ONES ARE MOVING INTO STOCKS TO GET HIGHER RETURNS MR WEINSTEIN ISN'T ADVISING HIS NEWSLETTER READERS TO RUSH OUT AND INDISCRIMINATELY BUY STOCKS RIGHT NOW BUT HE DOES SAY THAT HISTORICALLY AS LONG AS THE UTILITY AVERAGE HAS BEEN IN GOOD SHAPE YOU DON'T HAVE THE ENTIRE MARKET COMING APART 9302160174 930216 MCDONNELL ROLLS OUT MD90 PASSENGER JET LONG BEACH CALIF MCDONNELL DOUGLAS CORP OFFICIALLY ROLLED OUT ITS NEW MD90 TWINJET THE COMPANY'S LATEST DERIVATIVE OF THE DC9 JETLINER THE AIRCRAFT SPORTING A NEW COMPANY LIVERY IS BEING BILLED BY COMPANY OFFICIALS AS THE WORLD'S NEWEST AND MOST ENVIRONMENTALLY FRIENDLY JET AIRLINER THE 153PASSENGER JET FEATURES TWO CLEANBURNING INTERNATIONAL AERO ENGINES V2500 ENGINES THAT ALSO MEET THE MOST STRINGENT GOVERNMENT NOISECONTROL RULES INTERNATIONAL AERO IS A CONSORTIUM THAT INCLUDES COMPANIES IN THE US AND EUROPE THE JET'S UNVEILING COMES AS THE COMPANY HAS BEEN CUTTING BACK SHARPLY ON EMPLOYMENT BECAUSE OF ORDER CANCELLATIONS AND DEFERRALS BY RECESSIONSTRUCK AIRLINES AND BECAUSE OF ITS WEAK MARKET POSITION THE COMPANY'S DOUGLAS AIRCRAFT CO UNIT WHICH PRODUCES ITS COMMERCIAL JETS LACKS A WIDE VARIETY OF JET SIZES TO GIVE ITS PRODUCTS A BROADER MARKET APPEAL DOUGLAS AIRCRAFT BASED HERE IS THE WORLD'S THIRDLARGEST JETMAKER BEHIND MARKET LEADER BOEING CO AND EUROPE'S AIRBUS INDUSTRIE CONSORTIUM SOME EXPERTS QUESTION WHETHER DOUGLAS AIRCRAFT CAN SURVIVE A LONG EXTENSION OF THE CURRENT MARKET DOWNTURN MCDONNELL DOUGLAS IS BASED IN ST LOUIS THE MD90 ADDS NEW PERFORMANCE CHARACTERISTICS TO A PRODUCT LINE THAT BEGAN AS THE DC9 MODEL JET THAT FIRST FLEW IN 1965 AND EVOLVED LATER INTO ITS EXISTING MD80 AIRLINER THE MANUFACTURER SAYS IT HAS RECEIVED 179 FIRM ORDERS AND OTHER COMMITMENTS FROM SEVEN CUSTOMERS FOR THE MD90 SINCE IT WAS LAUNCHED IN 1989 SOME JETS WILL BE PRODUCED AT A FACTORY IN CHINA FOR AIRLINES THERE THE COMPANY ALSO MAKES THE THREEENGINE MD11 A DERIVATIVE OF ITS DC10 WIDEBODY AIRLINER IN SPEECHES AND INTERVIEWS ASSOCIATED WITH THE ROLLOUT CEREMONY MCDONNELL DOUGLAS CHAIRMAN JOHN MCDONNELL AND OTHER OFFICIALS RESTATED THEIR COMMITMENT TO STAYING IN THE AIRLINER BUSINESS FOR THE LONG RUN BY LOWERING THE COST OF PRODUCTION UNTIL BETTER DAYS ONE FACTOR IN COST CUTS AT THE COMPANY HAS BEEN ITS PLUMMETING EMPLOYMENT WHICH HAS FALLEN FROM MORE THAN 40000 WORKERS IN MID1990 TO 17500 MORE JOB CUTS ARE PROJECTED WITH PRODUCTION EXPECTED TO SLOW SIGNIFICANTLY IN THE NEXT YEAR 9302160173 930216 PEPPERAND SALT FROM CROSSING A BUSY STREET WHEN THEY WERE NOT EB DE VITO 9302160172 930216 AMERICAN RELIANCE REACHES PACT FOR SALE OF SOME ASSETS TO VIK LAWRENCEVILLE NJ AMERICAN RELIANCE GROUP INC SAID IT REACHED A DEFINITIVE AGREEMENT WITH VIK BROTHERS INSURANCE INC FOR VIK TO PURCHASE SOME AMERICAN RELIANCE BUSINESSES AMERICAN RELIANCE ALSO SAID IT HAS INCREASED THE ESTIMATE OF PRETAX LOSSES FROM HURRICANE ANDREW NET OF REINSURANCE TO 100 MILLION FROM 80 MILLION THE PROPERTY AND CASUALTY INSURANCE COMPANY SAID IT EXPECTS TO REPORT FOURTHQUARTER AND 1992 RESULTS AT THE END OF THE MONTH UNDER THE PURCHASE AGREEMENT VIK WILL ASSUME ALL OF AMERICAN RELIANCE'S INSURANCE BUSINESS WRITTEN AFTER 1988 EXCLUDING ITS FLORIDA AND NEW JERSEY PRIVATE PASSENGER AUTOMOBILE BUSINESS THE COMPANIES HAD ANNOUNCED IN DECEMBER THAT THEY HAD ENTERED INTO A LETTER OF INTENT FOR THE ASSUMPTION OF THE ASSETS ALSO AS REPORTED VIK BROTHERS WILL ALSO ASSUME CERTAIN NONINSURANCE LIABILITIES OF THE AMERICAN RELIANCE COMPANIES AND PURCHASE CERTAIN OTHER ASSETS INCLUDING THE HEADQUARTERS BUILDING LOCATED IN LAWRENCEVILLE VIK BROTHERS WILL INITIALLY PAY 21 MILLION15 MILLION FOR THE INSURANCE BUSINESS AND 6 MILLION FOR THE HEADQUARTERS BUILDING AMERICAN RELIANCE COMPANIES WILL RECEIVE 8 OF THE DIRECT PREMIUMS WRITTEN ON THE ASSUMED BUSINESS FOR THE ONEYEAR PERIOD FOLLOWING CLOSING AND A PAYMENT OF AS MUCH AS 35 OF THE DIRECT PREMIUMS WRITTEN ON THE ASSUMED BUSINESS FOR THE SECOND YEAR FOLLOWING CLOSING AMERICAN RELIANCE GROUP SAID ITS BOARD HASN'T DECIDED WHAT DISTRIBUTION WILL BE MADE TO SHAREHOLDERS FROM PROCEEDS OF THE TRANSACTION 9302160171 930216 CANADA'S WHEAT STOCKS FELL 93 AT YEAR END OTTAWA CANADIAN WHEAT STOCKS TOTALED 271 MILLION METRIC TONS AT DEC 31 A 93 DECLINE FROM 299 MILLION TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON OF WHEAT EQUALS 3674 BUSHELS THE WHEAT STOCKS INCLUDED 38 MILLION TONS OF DURUM WHEAT A 22 DECLINE FROM 49 MILLION TONS A YEAR EARLIER DURUM WHEAT IS USED TO MAKE PASTA PRODUCTS STOCKS OF CANOLA OR RAPESEED TOTALED 25 MILLION TONS OFF 13 FROM 29 MILLION TONS A YEAR EARLIER CANOLA IS CANADA'S BIGGEST OILSEED CROP STOCKS OF OTHER OILSEED CROPS ALSO DECLINED FROM A YEAR EARLIER 9302160170 930216 BLUE CROSS & BLUE SHIELD PARENT UNVEILS REFORMS FOR PROTECTION OF POLICYHOLDERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE PARENT ASSOCIATION OF THE NATION'S BLUE CROSS AND BLUE SHIELD ORGANIZATIONS UNVEILED REFORMS AIMED AT PROTECTING ITS 68 MILLION POLICYHOLDERS AN APPARENT BID TO SHORE UP PUBLIC CONFIDENCE IN THE MIDST OF AN EMBARRASSING SENATE INVESTIGATION THE BLUE CROSS & BLUE SHIELD ASSOCIATION SAID FRIDAY IT WILL BEGIN TO SCRUTINIZE ITS MEMBERS MORE CLOSELY REQUIRE GREATER FINANCIAL PROTECTIONS AND DEMAND MORE INVOLVEMENT OF EACH PLANS' BOARD OF DIRECTORS THESE AGGRESSIVE STEPS MEAN THAT BLUE CROSS AND BLUE SHIELD SUBSCRIBERS WILL HAVE ALL POSSIBLE FINANCIAL SAFEGUARDS SAID BERNARD TRESNOWKSI PRESIDENT OF THE ASSOCIATION WHICH IS BASED IN CHICAGO SEN SAM NUNN D GA WHO IS SPEARHEADING THE PROBE INTO THE HEALTH INSURERS HAILED THE CHANGES BUT SAID THEY ARE MEANINGLESS UNLESS THE NATIONAL ASSOCIATION ENFORCES THEM THE STANDARDS HE SAID MUST BE COUPLED WITH AN EQUALLY TOUGH ENFORCEMENT POLICY TO ENSURE THAT THEY ARE NOT IGNORED LIKE SOME OF THE CURRENT STANDARDS MR NUNN'S COMMITTEE THE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS FOUND THE ASSOCIATION OVERLOOKED ITS STANDARDS IN REGARDS TO BLUE CROSS & BLUE SHIELD OF WEST VIRGINIA WHICH FAILED IN 1990 THE NATIONAL ASSOCIATION HOLDS POWER OVER ITS MEMBERS THROUGH ITS ABILITY TO GRANT AND REVOKE THE USE OF THE BLUE CROSS AND BLUE SHIELD NAMES AND TRADEMARKS WE HAVE THE ULTIMATE POWER AN ASSOCIATION SPOKESMAN SAID IN THE CASE OF WEST VIRGINIA THE ASSOCIATION DIDN'T ACT UNTIL THE PLAN FAILED WE DIDN'T DO IT FAST ENOUGH THE SPOKESMAN SAID ADDING THE ASSOCIATION WILL BE STRICTER IN ENFORCING THE NEW REFORMS THAT WAS A WAKEUP CALL MR NUNN'S PANEL SINGLED OUT SIX BLUE CROSS AND BLUE SHIELD PLANS AS FINANCIALLY TROUBLED THEY INCLUDE EMPIRE BLUE CROSS & BLUE SHIELD OF NEW YORK AND BLUES PLANS IN THE DISTRICT OF COLUMBIA MARYLAND NEW HAMPSHIRE NEW JERSEY AND VERMONT HIS HEARINGS TURNED UP REVELATIONS OF BLUE CROSS AND BLUE SHIELD EXECUTIVES ENJOYING EXOTIC TRIPS LAVISH MEALS AND CLUB MEMBERSHIPS AT COMPANY EXPENSE THE PLAN SERVING THE DISTRICT OF COLUMBIA SPENT 44000 ON GOLF BALLS GREENS FEES AND GOLF ATTIRE THE PROBLEMS HIGHLIGHTED ARE ISOLATED AND NOT REPRESENTATIVE OF THE SYSTEM SAID THE BLUE CROSS SPOKESMAN MR TRESNOWSKI ADDED THAT LAST YEAR EACH OF THE 72 ORGANIZATIONS MADE MONEY REPORTING AGGREGRATE GAINS OF 19 BILLION AMONG THE NEW REFORMS ARE DEMANDS THAT EACH OF THE BLUES EITHER JOIN A STATE FUND THAT RESCUES POLICYHOLDERS OF FAILED INSURERS OR THAT THEY DEVISE ANOTHER METHOD TO PROTECT POLICYHOLDERS ALREADY 25 OF THE PLANS BELONG TO SOCALLED STATE GUARANTY FUNDS OTHER PLANS ARE REQUIRED BY STATE LAWS TO MAINTAIN A SPECIFIED LEVEL OF FINANCIAL RESERVES BUT STATES SOMETIMES WAIVE THOSE REQUIREMENTS FOR INSTANCE EMPIRE THE COUNTRY'S LARGEST BLUES ORGANIZATION IS LEGALLY REQUIRED TO HOLD RESERVES OF ABOUT 500 MILLION BUT ITS RESERVES AMOUNTED TO 40 MILLION AT YEAR END DOWN FROM 1445 MILLION IN 1991 THE STATE HAS PASSED RATE INCREASES AND OTHER MEASURES AIMED AT PROPPING UP THE COMPANY 9302160169 930216 VOICES IN THE HEALTH CARE DEBATE CENTRAL AMONG THE NATIONAL SACRIFICES PRESIDENT CLINTON HOPES FOR AS HE PRESENTS HIS ECONOMIC PROPOSALS THIS WEEK IS REFORM OF AMERICA'S HEALTHCARE SYSTEM TO WIDEN THE DEBATE THE JOURNAL SURVEYED HEALTHCARE PROFESSIONALS AND ACTIVISTS ASKING THEM TO NAME THE WORST EXAMPLES OF THE CURRENT SYSTEM AND THE MAIN FOCUS POINTS FOR REFORM EXCERPTS FROM THEIR REPLIES APPEAR BELOW MUCH HEALTHCARE INFLATION IS ACTUALLY REGULATORY INFLATION EVERY AGENCY PROPOSING NEW HEALTHCARE OR DRUG REGULATIONS SHOULD CUT EXISTING ONES SO THERE IS NO NET INCREASE IN ITS REGULATORY BURDEN THIS WILL REQUIRE HARD DECISIONS THE CONSUMER PROTECTION LOBBY THE AMERICAN MEDICAL ASSOCIATION THE FOOD AND DRUG ADMINISTRATION AND THE TRIAL LAWYERS ALL HAVE A STAKE IN REGULATIONS WHERE THE BENEFIT GOES TO THEM AND THE COST IS BORNE BY SOCIETY ONE REGULATION THAT COSTS SOCIETY DEARLY IS THE FDA EFFICACY STANDARD FOR APPROVAL OF DRUGS FOR LIFETHREATENING DISEASES BY DEMANDING RIGOROUS PROOF OF EFFICACY BEFORE APPROVAL THE FDA DRIVES UP DRUG PRICES IMPEDES DEVELOPMENT OF NEW TREATMENTS AND CONDEMNS PEOPLE WITH AIDS AND CANCER TO DIE WAITING FOR THE FDA AN 80YEAROLD PATIENT ARRIVED AT MY OFFICE COMPLAINING OF FREQUENT AND UNCONTROLLABLE URINATION I PERFORMED SEVERAL TESTS PRESCRIBED MEDICATION AND HELPED THE PATIENT SOLVE HER PROBLEM FOR PRACTICING GYNECOLOGISTS LIKE MYSELF WHO SEE BLADDER PROBLEMS IN AGING PATIENTS ALMOST DAILY THERE WAS NOTHING REMARKABLE IN CURING THE PROBLEM WHAT IS NOTEWORTHY IS THAT THE BLADDER PROBLEM EXISTED FOR FIVE YEARS SINCE THE PATIENT WAS ON MEDICARE NO DOCTOR HAD TAKEN THE TIME TO GIVE HER A FULL DIAGNOSTIC WORKUP AND TREATMENT AMERICAN MEDICAL CARE FOR THE ELDERLY IS QUIETLY BEING RATIONED BY LIMITING REIMBURSEMENTS TO LEVELS WHERE DOCTORS LOSE MONEY WHEN THEY TREAT PATIENTS THIS HAS OBVIOUSLY BEEN ONE WAY FOR THE FEDERAL GOVERNMENT TO QUIETLY REDUCE HEALTH CARE COSTS YET NO POLITICIAN HAS YET HAD THE COURAGE TO EXPLAIN THIS DIRTY LITTLE SECRET TO THE AMERICAN PUBLIC MANAGED CARE INJECTS SIMILAR RATIONING THE TIME HAS COME FOR HONEST PRESENTATION OF THE CONSEQUENCES OF THE HEALTH PLANS BEING FORMULATED WE CANNOT TALK SERIOUSLY ABOUT HEALTHCARE REFORM WITHOUT A COMMITMENT TO IDENTIFYING THE EXTRAORDINARILY HIGH COSTS OF TREATING PREVENTABLE DISEASES CIGARETTE SMOKING CAUSES NEARLY 500000 OF THE ESTIMATED ONE MILLION PREMATURE DEATHS ANNUALLY ALL OF US ABSORB THE MORE THAN 35 BILLION IN COSTS ASSOCIATED WITH TREATING SMOKERS WHO AT A RELATIVELY YOUNG AGE DEVELOP CANCERS PULMONARY DISEASE AND HEART AILMENTS SMOKERS SHOULD BE ASSESSED A USERS' FEE NOT A GENERAL TAX THAT COULD BE HIJACKED FOR OTHER PURPOSES TO COMPENSATE THE SYSTEM PRIVATE OR PUBLIC FOR THE INEVITABLE COSTS OF TREATING SMOKINGRELATED DISEASES THERE IS AT THIS VERY MOMENT A WORKING MOTHER IN AMERICA WITH A SICK CHILD SHE HESITATES TO BRING HER CHILD TO A PHYSICIAN BECAUSE SHE DOES NOT HAVE HEALTH INSURANCE AND IS ALREADY BEING HOUNDED OVER EARLIER UNPAID MEDICAL BILLS IT IS A COMMON OCCURRENCE IN OUR COUNTRY WHERE MEDICAL BILLS HAVE BECOME A CHIEF SOURCE OF PERSONAL BANKRUPTCY WELLTODO AMERICANS OUGHT TO BE HAUNTED BY THAT IMAGERY AND ASHAMED ARE WE REALLY TO BELIEVE THAT OUR 6 TRILLION ECONOMY IS TOO ANEMIC TO GRANT THIS HARDWORKING MOTHER AND OTHER UNINSURED AMERICANS THE FINANCIAL ASSISTANCE AND PEACE OF MIND MUCH POORER COUNTRIES ROUTINELY AFFORD ALL CITIZENS PREMIUMS PAID BY EMPLOYERS FOR THEIR EMPLOYEES' HEALTH INSURANCE ARE NOT NOW ADDED TO THE EMPLOYEES' TAXABLE INCOME THAT FEATURE OF THE TAX CODE SAVES CORPORATE EXECUTIVES OVER 1600 A YEAR IN TAXES BUT LOWWAGE EMPLOYEES CLOSE TO NOTHING WHY NOT CONVERT THIS FRINGE BENEFIT TO TAXABLE INCOME FOR EMPLOYEES EARNING SAY 50000 OR MORE A YEAR THE TAX COULD BE PHASED IN SO THAT FOR EMPLOYEES EARNING MORE THAN SAY 80000 A YEAR 100 OF ALL EMPLOYERPAID FRINGE BENEFITS WOULD BECOME TAXABLE INCOME TO THE EMPLOYEE WITH THESE ADDED TAXES WE COULD BEGIN COVERING LOWINCOME UNINSURED AMERICANS STARTING WITH MOTHERS AND CHILDREN THE SELFEMPLOYED ARE DENIED FAIR TAX DEDUCTIBILITY OF INSURANCE PREMIUMS THEY CAN'T INVEST IN A SELFINSURING HEALTH IRA AND DON'T HAVE ACCESS TO LOWER GROUP INSURANCE RATES STATE MANDATES AND EXCESSIVE PAPER WORK REQUIREMENTS MAKE INSURANCE FINANCIALLY PROHIBITIVE AND IF THE SELFEMPLOYED OR THEIR FAMILIES HAVE COSTLY PREEXISTING MEDICAL CONDITIONS INSURANCE IS UNAVAILABLE AT ANY PRICE REPEALING STATE MANDATES A MOVE TOWARD COMMUNITY RATING AND TAX INCENTIVES FOR SMALL BUSINESS ARE JUST SOME OF THE ACHIEVABLE RAPIDLY IMPLEMENTABLE AND RELATIVELY INEXPENSIVE SOLUTIONS TO THIS PROBLEM HOUSE INITIATIVES ON THESE ISSUES SHOULD BE REINTRODUCED AND PASSED THE FOOD AND DRUG ADMINISTRATION RULES ON DRUG SAFETY YET FAR TOO MANY AMERICANS DIE FROM UNSAFE DRUGS AND FOODS IT RULES ON DRUG EFFECTIVENESS YET IT CANNOT ACT ON DRUGS USED SAFELY AND EFFECTIVELY IN EUROPE FOR DECADES THIS DOOMS THOUSANDS TO UNNECESSARY SUFFERING AND DEATH WHY DO SUCH PROBLEMS PERSIST THE FDA BUREAUCRACY LOCKS UP MINDS AND PARALYZES ACTION TOO OFTEN PREJUDICES AGAINST CERTAIN DRUG COMPANIES OR PERSONAL AND PROFESSIONAL JEALOUSIES AND CONFLICTS HAMPER PROPER ACTION I URGENTLY ADVISE HILLARY CLINTON TO 1 FIRE THE CURRENT FDA COMMISSIONER DR DAVID KESSLER ALL OF WHOSE ACTIONS SEEM POLITICALLY MOTIVATED 2 ASK THE ATTORNEY GENERAL TO INVESTIGATE CONFLICTS OF INTEREST THAT KEEP VITAL DRUGS FROM MILLIONS OF VICTIMS AND MAKE COSTS SKYROCKET 3 ASK CONGRESS TO HOLD PUBLIC HEARINGS AT WHICH EXPERTS COULD DETAIL FDA FAILINGS AND PROPOSE A BASIC REORGANIZATION OF THE FDA ONE REASON HEALTHCARE COSTS ARE OUT OF CONTROL IS THAT WHEN WE ENTER THE MEDICAL MARKETPLACE AS PATIENTS WE ARE USUALLY SPENDING SOMEONE ELSE'S MONEY ECONOMIC STUDIES AND COMMON SENSE CONFIRM THAT WE ARE LESS LIKELY TO BE PRUDENT SHOPPERS IF SOMEONE ELSE IS PAYING THE BILL OVER THE PAST 30 YEARS THE SHARE OF OUR INCOME SPENT OUTOFPOCKET ON HEALTH CARE HAS ACTUALLY DECLINED FALLING FROM 4 OF TOTAL CONSUMPTION EXPENDITURES IN 1960 TO 36 IN 1990 OVER THE SAME PERIOD THE AMOUNT SPENT FROM ALL SOURCES HAS MORE THAN TRIPLED RISING FROM 42 OF CONSUMPTION IN 1960 TO 133 IN 1990 TO CONTROL COSTS MORE THAN 200 MEMBERS OF CONGRESS LAST YEAR SUPPORTED MEDICAL SAVINGS ACCOUNTS TAXFREE DEPOSITS COULD BE MADE TO THESE ACCOUNTS WHICH WOULD BE THE PROPERTY OF THE EMPLOYEE MONEY COULD BE WITHDRAWN WITHOUT PENALTY TO PAY FOR MEDICAL EXPENSES OR TO PAY INSURANCE PREMIUMS EVEN DURING PERIODS OF UNEMPLOYMENT WITH MEDICAL SAVINGS ACCOUNTS PEOPLE WOULD HAVE THE MONEY TO PURCHASE PREVENTIVE CARE AND TO PAY OTHER SMALL MEDICAL BILLS USING HEALTH INSURANCE TO PAY FOR CATASTROPHIC EXPENSES AS A RESULT PATIENTS WOULD ACQUIRE GREATER CONTROL OVER HOW THEIR HEALTHCARE DOLLARS ARE SPENT AND THEY WOULD HAVE A STRONG INCENTIVE TO BE PRUDENT CONSUMERS BECAUSE THEY WOULD GET TO KEEP THE MONEY THEY DID NOT SPEND AS THIS TABLE SHOWS OVER THE PAST DECADE MEDICINE HAS BECOME INCREASINGLY BUREAUCRATIC MANY MANAGERS WORK TOWARD KEEPING COSTS DOWN THROUGH UTILIZATION REVIEWS MANDATED SECOND OPINIONS AND THE LIKE YET THIS HAS DRIVEN THE ADMINISTRATIVE COSTS OF THE US HEALTH CARE SYSTEM WELL OVER 175 BILLION PER YEAR AND UNDERMINES THE MORALE OF PHYSICIANS AND THE SATISFACTION OF PATIENTS A TAXFINANCED SINGLEPAYER SYSTEM WITH A GLOBAL BUDGET CAN ELIMINATE MANY LAYERS OF BUREAUCRACY AND PROVIDE PROVEN COST CONTROL MECHANISMS PRESIDENT CLINTON CAN BEGIN THE PROCESS OF CONVERTING THE SYSTEM IN STEPS WE COULD BEGIN BY COVERING CHILDREN AND PREGNANT WOMEN WITH A TAXFINANCED HEALTH INSURANCE THEN EXPAND THE PROGRAM TO THE UNINSURED AND FINALLY INCLUDE THE ENTIRE COUNTRY FOR MANY DISEASES PHARMACEUTICALS ARE THE MOST COSTEFFECTIVE THERAPY OBVIATING THE NEED FOR EXPENSIVE INVASIVE TREATMENTS AND THE MOST EFFECTIVE TREATMENTS FOR NOW INTRACTABLE DISEASES AIDS ALZHEIMER'S CANCER MAY WELL BE DISCOVERED BY THE PHARMACEUTICAL INDUSTRY WHICH HAS DONE SO MUCH TO TREAT POLIO TUBERCULOSIS AND CERTAIN FORMS OF HEART DISEASE UNFORTUNATELY A LACK OF THIRDPARTY COVERAGE ACTS AS A DISINCENTIVE TO THE USE OF PHARMACEUTICALS ONLY 5 OF HOSPITAL COSTS AND 19 OF PHYSICIANS' COSTS ARE PAID OUT OF PATIENTS' OWN POCKETS IN CONTRAST TO 55 OF PRESCRIPTION DRUG COSTS LACK OF COVERAGE HAS LED TO THE PERCEPTION THAT DRUG PRICES ARE TOO HIGH IN FACT US SPENDING ON PHARMACEUTICALS HAS REMAINED UNDER 1 OF GROSS NATIONAL PRODUCT SINCE 1965 EVEN AS TOTAL HEALTH CARE SPENDING HAS BURGEONED FROM 6 TO AROUND 14 OF GNP HEALTHCARE REFORM SHOULD FOCUS ON PROVIDING ASSISTANCE TO THOSE WHO MUST SPEND A DISPROPORTIONATE AMOUNT OF THEIR INCOMES ON PRESCRIPTION DRUGS PRIMARILY THE ELDERLY AND PEOPLE WITH CHRONIC DISEASES THE CLINTON GOAL SHOULD BE A SYSTEM THAT EQUALIZES INCENTIVES BETWEEN PHARMACEUTICALS AND OTHER SERVICES CHAIRMAN AND CEO PFIZER INC THE FEDERAL GOVERNMENT'S CURRENT APPROACH TO MEDICAL COST CONTAINMENT SUCCEEDS ONLY IN LIMITING HEALTHCARE PROFESSIONALS AND DRIVING UP MEDICAL COSTS MEDICARE IS A PRIME EXAMPLE OUR 35BED COMMUNITY HOSPITAL HAD TO WRITE OFF 34 MILLION LAST YEAR FOR MEDICARE PATIENTS ALONE TRANSLATED OUR DOCTORS DIDN'T ALWAYS DISCHARGE PATIENTS WHEN MEDICARE TOLD US TO WE ORDERED TESTS AND QR07000015TREATMENTS THAT MEDICARE DIDN'T APPROVE WE TOOK CARE OF COMPLICATIONS THAT THE RIGID WORLD OF MEDICARE DID NOT ALLOW FOR OUR MOTIVE CERTAINLY NOT PROFIT HOW ABOUT GOOD PATIENT CARE PRIVATE PRACTITIONERS ARE IN THE SAME BOAT WE MUST FREEZE CHARGES TO MEDICARE PATIENTS WHILE OUR OVERHEAD CONTINUES TO SKYROCKET AS WE DEAL WITH EXPANDING FEDERAL REGULATIONS MOST OF WHICH THWART GOOD PATIENT CARE THE SOLUTION LET'S STREAMLINE AND MINIMIZE GOVERNMENT INVOLVEMENT LET THE GOVERNMENT AND PHYSICIANS WORK AS ALLIES NOT ENEMIES PROVIDE INCENTIVES NOT THREATS EMPHASIZE PREVENTION NOT CRISIS MEDICINE REWARD PRIMARY CARE WHERE PREVENTION BEGINS OVER EXPENSIVE PROCEDURES DECENTRALIZE GRANT MORE AUTONOMY TO THE STATES STOP LEGISLATING MEDICAL JUDGMENT TO ENCOURAGE COST CONTAINMENT KEEP QUALITY HIGH AND GET HEALTH COVERAGE TO 36 MILLION AMERICANS WHO LACK IT GOVERNMENT MUST ENCOURAGE COLLABORATION AMONG HOSPITALS PHYSICIANS AND OTHERS IN NETWORKS AT THE LOCAL LEVEL COMMUNITY CARE NETWORKS SHOULD PROVIDE A PACKAGE OF ESSENTIAL HEALTH SERVICES AT A SET ANNUAL FEE PER PERSON THE INCENTIVE KEEP PEOPLE WELL NATIONAL HEALTH CARE REFORM WILL SUCCEED IF ITS SOLUTIONS CAN BE TAILORED TO FIT COMMUNITY NEEDS THE NEED FOR HEALTH CARE IS PAINFULLY EVIDENT IN THE DISTORTION OF PRICES COSTSHIFTING HAS OCCURRED TO SUCH AN EXTENT THAT THE PRICE OF MEDICAL CARE BEARS LITTLE IF ANY RELATIONSHIP TO ITS ACTUAL COST THE EFFECT IS FELT MOSTLY BY EMPLOYERS ALTHOUGH HEALTH CARE PRICES MAY INCREASE BY ONLY 8 TO 10 NATIONALLY COSTS FOR EMPLOYERSPONSORED HEALTH INSURANCE ARE INCREASING AT TWICE OR MORE THAT RATE HEALTHCARE REFORM MUST REESTABLISH AND PRESERVE COMPETITIVE MARKETS IF INSTEAD REFORM IS VIEWED AS AN OPPORTUNITY TO SHIFT MORE COSTS TO EMPLOYERS THE COST OF LABOR WILL INCREASE JOBS WILL BE LOST BUSINESSES WILL CLOSE AND THIS COUNTRY WILL BECOME LESS COMPETITIVE NOT MORE COMPETITIVE IN WORLD MARKETS AMERICANS HAVE LONG BELIEVED THAT HEALTH CARE SHOULD HAVE A SPECIAL MORAL STATUS AND THUS BE ALLOWED TO FOLLOW ITS OWN UNFETTERED ECONOMIC RULES THAT IS WRONG HEALTH IS ONLY ONE OF MANY IMPORTANT HUMAN NEEDS NOTHING THEN IS MORE IMPORTANT FOR THE FUTURE THAN A PUBLIC AND PROFESSIONAL ACCEPTANCE OF A TIGHT AND FIXED ANNUAL HEALTHCARE BUDGET OTHER COUNTRIES HAVE DONE IT IT WORKS FROM THE RUNWAYS OF HEALTHCARE FASHION MANAGED COMPETITION IS EMERGING AS THE STAR OF THE SHOW PROPONENTS SAY THE POTENTIAL TO SAVE MONEY IS TREMENDOUS BUT THAT NOTION HAS ARISEN OUT OF IDEOLOGY AND POLITICAL EXPEDIENCY WHILE PAYING LIP SERVICE TO MARKET ECONOMICS MANAGED COMPETITION CREATES A BUREAUCRATIC QUAGMIRE TO CONSTRAIN HEALTH CARE COSTS MANAGED CARE AS IT IS NOW PRACTICED IS NOT THE SOLUTION TO SOARING HEALTH CARE COSTS IT'S PART OF THE PROBLEM I JOINED SEVERAL MANAGED CARE PLANS TO OBLIGE LONGSTANDING PATIENTS WHOSE EMPLOYERS STOPPED OFFERING INDEMNITY INSURANCE MY MANAGED CARE PATIENTS NOW GENERATE ABOUT 70 OF MY OFFICE REVENUE THE NEED TO GET PRIOR APPROVAL FOR CONSULTATIONS PROCEDURES AND XRAYS HAS GENERATED A MASSIVE AMOUNT OF PAPER WORK IN MY OFFICE AND HAS REQUIRED ME TO HIRE TWO EXTRA EMPLOYEES PRIOR TO THE INITIATION OF MANAGED CARE I SPENT 40 OF MY GROSS INCOME ON OVERHEAD TODAY 64 OF MY GROSS INCOME GOES FOR ADMINISTRATION SINCE 1985 THE ADVENT OF MANAGED CARED HERE AT SEQUOIA HOSPITAL THE INSTITUTION HAS ADDED 35 EMPLOYEES TO MANAGE CARE THEY PROVIDE NOT ONE IOTA OF CARE TO PATIENTS WE MUST MOVE BEYOND CASEBYCASE MICROMANAGEMENT AND SUBSTITUTE STANDARDS OF CARE AND THE MEASUREMENT OF DOCTORS' OVERALL PERFORMANCE AGAINST SCIENTIFIC STANDARDS UNFORTUNATELY THE TRANSFORMATION OF AMERICAN MEDICINE ALONG THESE LINES WILL TAKE YEARS TO ACCOMPLISH AND WE MAY SPEND MORE MONEY THAN WE SAVE PRESIDENT CLINTON IF YOU ARE GOING TO PLUNGE THIS NATION INTO A SYSTEM OF MANAGED COMPETITION BE PREPARED TO OPEN THE GOVERNMENT'S PURSE MASSIVE POVERTY COUPLED WITH CERTAIN KINDS OF BEHAVIOR RESULTS IN AN INCREASED VOLUME AND SEVERITY OF ILLNESS IN THIS COUNTRY MORE DRUG ABUSERELATED ILLNESSES MORE AIDS MORE TEENAGE UNWANTED OUTOFWEDLOCK PREGNANCIES RESULTING IN PREMATURE AND SICK BABIES MORE HOMICIDES AND ASSAULTIVE INJURIES AND MORE ACCIDENTS DEMANDING INTENSIVE AND EXPENSIVE MEDICAL SERVICES THESE CULTURAL FACTORS LINKED WITH SOCIAL PATHOLOGIES LIKE THE BREAKDOWN OF THE FAMILY CHRONIC UNEMPLOYMENT HOMELESSNESS AND VIOLENCE CAUSE AMERICANS TO END UP IN THE EMERGENCY ROOMS INTENSIVE CARE UNITS AND MORGUES OF OUR URBAN AND RURAL HOSPITALS THIS COUNTRY IS PAYING DEARLY FOR ITS SOCIAL PROBLEMS ONCE THEY BECOME MEDICAL PROBLEMS HEALTH INSURANCE REFORM IS VITAL BUT ANY ATTEMPT AT AN ECONOMIC QUICK FIX SUCH AS GLOBAL BUDGETING WILL ONLY DEPRIVE THE MOST VULNERABLE AMONG US OF ADEQUATE CARE UNLESS PRESIDENT CLINTON PERCEIVES THE HEALTHCARE DILEMMA AS ASSOCIATED MORE WITH OUR SOCIAL PROBLEMS THAN WITH THE STRUCTURE OF THE HEALTHCARE SYSTEM HE IS UNLIKELY TO FULFILL HIS PROMISE TO CONTROL COSTS AND EXTEND CARE TO ALL AMERICANS NO CITY BETTER ILLUSTRATES THE NEED FOR CHANGE IN AMERICAN HEALTH CARE THAN LOS ANGELES ONLY A FEW MONTHS AGO A SURGEON AT CEDARS SINAI HOSPITAL TRANSPLANTED A LIVER FROM A BABOON IN A DESPERATE EFFORT TO SAVE A WOMAN DYING OF COMPLETE LIVER FAILURE THIS IN A CITY WHERE TWO OUT OF THREE HISPANIC PRESCHOOLERS HAVE NOT BEEN IMMUNIZED DOCTORS ARE PUSHING THE ENVELOPE OF HIGHTECH MEDICINE IN THE SHADOW OF NEIGHBORHOODS WHERE THOUSANDS OF PREGNANT WOMEN DO NOT GET BASIC CARE THE CLINTON ADMINISTRATION SHOULD PROPOSE A BASIC PACKAGE OF SERVICES INCLUDING VACCINATIONS WELLBABY CARE NUTRITION COUNSELING AND HOSPITAL SERVICES TO EVERY CHILD AND PREGNANT WOMAN IN AMERICA THIS CAN BE DONE BY ADDING A 1 CHILDREN'S HEALTH TAX ON ALL MEDICAL HOSPITAL AND INSURANCEPREMIUM BILLS EXCLUDING MEDICAID AND CHARITY CARE BUT PROVIDING FINANCIAL ACCESS IS NOT ENOUGH CHILDREN NEED A GOOD PRIMARYCARE PROVIDER TO MAKE SURE THAT THEY ACTUALLY GET THE CARE THEY REQUIRE A KIDCARE PROGRAM IN WHICH EVERY DOCTOR NURSE SOCIAL WORKER AND HEALTH PROFESSIONAL IN AMERICA IS REQUIRED TO ACT AS THE HEALTH ADVOCATE FOR ONE POOR CHILD UNDER THE AGE OF TWO AS A CONDITION OF LICENSURE WOULD SOLVE THIS PROBLEM TO DEAL WITH AMERICA'S MANY HEALTHCARE PROBLEMS HILLARY CLINTON'S TEAM MUST TRY TO END THE LINK BETWEEN AN INDIVIDUAL'S PLACE OF WORK AND THE HEALTHCARE SERVICES HE HAS ACCESS TO THE EMPLOYMENTBASED SYSTEM MEANS A CHANGE OR LOSS OF BENEFITS WITH EACH JOB CHANGE IT LEADS TO UNINSURANCE AMONG WORKERS WITHOUT COMPANY PLANS AND THE ILLUSION THAT THE COMPANY PAYS FANS INFLATION THE CLINTON ADMINISTRATION CAN SOLVE THESE PROBLEMS BY LETTING THE REST OF US IN THE PROGRAM THAT ALL FEDERAL OFFICIALS ENJOY THE FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM LETS EMPLOYEES CHOOSE AMONG 10 TO 20 COMPETING PLANS AND PROVIDES THEM WITH GOVERNMENT ASSISTANCE EQUAL TO A FIXED PERCENTAGE OF THE PREMIUM COST FEHBP PREMIUMS HAVE RISEN OVER THE LAST DECADE AT ONLY TWOTHIRDS THE RATE OF CORPORATEPLAN PREMIUMS AND FEDERAL WORKERS CAN KEEP THE SAME PLAN FROM EMPLOYER TO EMPLOYER AND EVEN INTO RETIREMENT THE HERITAGE FOUNDATION'S TAX REFORM PLAN CONVERTS TODAY'S TAX EXCLUSION FOR COMPANYSPONSORED PLANS INTO A REFUNDABLE TAX CREDIT WHICH EFFECTIVELY WOULD MAKE AN IMPROVED VERSION OF THE FEDERAL PROGRAM AVAILABLE TO ALL AMERICANS INCLUDING THE UNINSURED 9302160168 930216 OWNER OF JH AYRES SETTLES SEC COMPLAINT ALLEGING FALSE CLAIMS WASHINGTON A COLORADO INVESTMENT ADVISER AGREED TO SETTLE A SECURITIES AND EXCHANGE COMMISSION COMPLAINT THAT ACCUSED HIM OF FALSELY CLAIMING THAT HE REPRESENTED AS MANY AS 193 CLIENTS AND MANAGED ASSETS TOTALING AS MUCH AS 28 BILLION IN FACT THE SEC SAID JAMES H AYRES ADVISED NO MORE THAN FOUR CLIENTS AND MANAGED ASSETS TOTALING BETWEEN 375000 AND 17 MILLION A FAR CRY FROM THE NUMBERS THAT MR AYRES ALLEGEDLY PROVIDED FOR PUBLICATION BY AT LEAST FOUR DATA SERVICES THAT FURNISH LISTS OF INVESTMENT ADVISERS TO PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS MR AYRES REACHED BY TELEPHONE AT HIS COMBINATION HOME AND OFFICE IN COLORADO SPRINGS COLO WOULDN'T SAY HOW MANY CLIENTS HE ADVISES OR COMMENT ON THE NUMBER HE GAVE THE LISTING SERVICES MR AYRES WHO SAID HE IS THE SOLE EMPLOYEE OF HIS FIRM JH AYRES & CO SAID CONFIDENTIALITY AGREEMENTS WITH HIS CLIENTS PROHIBIT HIM FROM PROVIDING THAT INFORMATION IN THE SETTLEMENT WITH THE SEC MR AYRES NEITHER ADMITTED NOR DENIED WRONGDOING BUT AGREED TO ADHERE TO SEC RULES PROHIBITING FALSE ADVERTISING MR AYRES SAID FRIDAY THAT HE HADN'T BEEN INFORMED BY THE SEC THAT HIS SETTLEMENT OFFER HAD BEEN ACCEPTED AND CONTENDED THAT NOBODY HAS BEEN HARMED BY INFORMATION HE PROVIDED I BENEFITED NOT ONE IOTA FROM ANY INFORMATION THAT WENT INTO ANY PUBLICATION MR AYRES SAID ADDING THAT HE SETTLED WITH THE SEC TO GET THOSE BUZZARDS OFF MY BACK 9302160167 930216 URUGUAY TRADE DECIFIT WIDENS MONTEVIDEO URUGUAY AN ABRUPT INCREASE IN IMPORTS CAUSED A TRADE DEFICIT OF 356 MILLION LAST YEAR URUGUAY'S CENTRAL BANK SAID IMPORTS GREW TO 205 BILLION UP 26 FROM 1991 EXPORTS ALSO GREW BUT BY A MUCH MORE MODEST 61 TO 17 BILLION THE TRADE DEFICIT WAS LARGE BY URUGUAYAN STANDARDS THE 1991 DEFICIT BY COMPARISON WAS 258 MILLION 9302160166 930216 MERCEDES TO EXTEND SHORTENED WORK SHIFTS BONN MERCEDESBENZ A UNIT OF DAIMLERBENZ AG SAID IT WILL EXTEND SHORTENED WORKING SHIFTS INTO APRIL SHORT SHIFTS IN GERMANY CAN MEAN ACTUALLY SHORTENING THE WORKING DAY OR TEMPORARILY LAYING OFF WORKERS IN THE CASE OF MERCEDES IT MEANS THAT 42000 WORKERS IN SINDELFINGEN GERMANY WILL BE TEMPORARILY IDLED FOR FIVE DAYS THE ANNOUNCEMENT COMES A WEEK AFTER THE GERMAN LUXURY CAR BUILDER SAID IT WOULD IMPOSE SHORTENED WORKING SHIFTS IN MARCH MERCEDES HAS BEEN RUNNING ON SHORTENED WORKING SHIFTS SINCE NOVEMBER CITING A POOR SALES CLIMATE FOR ITS CARS GERMAN INDUSTRY USES SHORT SHIFTS TO AVOID PERMANENT LAYOFFS AND TO REDUCE PRODUCTION 9302160165 930216 WHO'S NEWS USG CORP USG CORP CHICAGO MATTHEW P GONRING 37YEAROLD DIRECTOR OF CORPORATE RELATIONS FOR THIS MAKER OF BUILDING PRODUCTS WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT CORPORATE COMMUNICATIONS EFFECTIVE MARCH 1 9302160164 930216 VOLVO'S TRUCK UNIT SIGNS IMPORT ACCORD WITH MEXICAN FIRM STOCKHOLM SWEDEN'S VOLVO LASTVAGNAR AB THE TRUCKMAKING ARM OF AUTOMOTIVE AND AEROSPACE GROUP AB VOLVO SAID ITS NORTH AMERICAN SUBSIDIARY VOLVO GM HEAVY TRUCK CORP HAD LICENSED MEXICAN TRUCK MAKER TRAILERS DE MONTERREY TO IMPORT AND ASSEMBLE CLASS 8 TRUCKS THE MEXICAN CLASS 8 MARKET ABOVE 15000 METRIC TONS AMOUNTED TO 11800 HEAVY DUTY UNITS IN 1992 COMPARED WITH 13500 UNITS IN 1991 VOLVO SAID IT ADDED THAT IT EXPECTS TRAILERS DE MONTERREY WILL PRODUCE THE FIRST MEXICANASSEMBLED TRUCK IN THIS YEAR'S THIRD QUARTER THE AGREEMENT ALSO INCLUDES SALES MARKETING AND PARTS AND SERVICE SUPPORT FROM VOLVO GM HEAVY TRUCK FOR IMPORTED TRUCKS AS WELL AS VEHICLES ASSEMBLED IN MEXICO TRAILERS DE MONTERREY WILL BE THE EXCLUSIVE IMPORTER FOR TRUCKS ASSEMBLED IN THE US VOLVO SAID THE TWO COMPANIES SIGNED A DISTRIBUTOR AND SALES AGREEMENT A YEAR AGO THE SWEDISH GROUP SAID 9302160163 930216 FEDERAL REALTY NOTES ANALYSTS' EXPECTATIONS FOR OPERATIONS IN 1992 SPECIAL TO THE WALL STREET JOURNAL BETHESDA MD FEDERAL REALTY INVESTMENT TRUST'S PRESIDENT AND CHIEF EXECUTIVE OFFICER STEVEN GUTTMAN SAID HE IS COMFORTABLE WITH ANALYSTS' EXPECTATIONS THAT FUNDS FROM OPERATIONS TOTALED 28 MILLION TO 29 MILLION OR 130 TO 135 A SHARE FOR 1992 THAT WOULD COMPARE WITH FUNDS FROM OPERATIONS OF 262 MILLION OR 152 A SHARE POSTED BY THE TRUST IN 1991 WHEN IT HAD FEWER SHARES OUTSTANDING THE TRUST WHICH OWNS OR OPERATES 42 SHOPPING CENTERS PLANS TO REPORT ITS 1992 RESULTS FRIDAY IT DEFINES FUNDS FROM OPERATIONS AS INCOME BEFORE PROPERTY DEPRECIATION AND AMORTIZATION AND EXTRAORDINARY ITEMS LESS GAINS ON THE SALE OF REAL ESTATE AND SAYS IT IS THE FIGURE MOST CLOSELY WATCHED BY ITS INVESTORS AND WALL STREET ANALYSTS WHO FOLLOW IT ALTHOUGH THE TRUST'S FINAL 1992 FIGURES AREN'T YET AVAILABLE THE WEIGHTED AVERAGE NUMBER OF SHARES USED TO CALCULATE PERSHARE RESULTS FOR 1992 WILL BE SUBSTANTIALLY HIGHER ABOUT 22 MILLION THAN THE 173 MILLION USED IN 1991 ACCORDING TO MJ MORROW VICE PRESIDENT FINANCE THE INCREASE REFLECTS A PUBLIC OFFERING OF 25 MILLION SHARES IN DECEMBER 1991 WHICH BROUGHT THE TRUST PROCEEDS OF 422 MILLION AND AN OFFERING OF 34 MILLION SHARES IN JUNE 1992 THAT GENERATED NET PROCEEDS OF 665 MILLION 9302160162 930216 WHO'S NEWS SKOLNIKS INC SKOLNIKS INC OKLAHOMA CITY ALVIN REEVES JR 49 YEARS OLD WAS NAMED PRESIDENT AND WILL CONTINUE AS CHIEF FINANCIAL OFFICER AND TREASURER HE SUCCEEDS JAMES KISER WHO RESIGNED AFTER 13 MONTHS WITH THE BAGEL BAKERY AND RESTAURANT CHAIN THE COMPANY SAID MR KISER 58 RESIGNED TO PURSUE OTHER INTERESTS AND WOULD SERVE AS A CONSULTANT TO SKOLNIKS IN SEPTEMBER A SAN ANTONIO INVESTMENT GROUP TOOK CONTROL OF SKOLNIKS AND INSTITUTED A LEADERSHIP CHANGE THE BOARD AT THE TIME GAVE MR KISER A FULL VOTE OF CONFIDENCE MR KISER COULDN'T BE REACHED FOR COMMENT ON HIS RESIGNATION 9302160161 930216 WHO'S NEWS VISX INC VISX INC SANTA CLARA CALIF JAMES E WILLIAMS A FORMER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT TEGAL CORP WAS APPOINTED VICE PRESIDENT FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER AT THIS LASER EYESURGERY COMPANY HE SUCCEEDS MARK FORMANEK CONTROLLER WHO HAD BEEN ACTING CHIEF FINANCIAL OFFICER ROBERT B SAMUELS WAS ELECTED TO THE BOARD SUCCEEDING E PAUL EDER WHO DIED LAST YEAR MR SAMUELS IS A FORMER PRESIDENT OF ALLERGAN HUMPHREY AND CORPORATE VICE PRESIDENT OF ALLERGAN INC 9302160160 930216 WHO'S NEWS CABOT CORP CABOT CORP BOSTON ARNOLD S HIATT AND JANE C BRADLEY WERE NAMED DIRECTORS OF THIS SPECIALTY CHEMICALS AND ENERGY CONCERN INCREASING BOARD MEMBERSHIP TO 15 MR HIATT IS THE FORMER CHAIRMAN OF STRIDE RITE CORP HIS POST IS NEW MS BRADLEY IS DIRECTOR OF FIDUCIARY TRUST CO SHE SUCCEEDS HER HUSBAND JOHN BRADLEY WHO RECENTLY RETIRED FROM THE BOARD AFTER SERVING FOR 33 YEARS 9302160159 930216 OUTOKUMPU OY TO GET 60 INTEREST IN PROJECT IN RETURN FOR FUNDING SPECIAL TO THE WALL STREET JOURNAL PERTH AUSTRALIA OUTOKUMPU OY OF FINLAND WILL RECEIVE A 60 INTEREST IN THE PILBARA PANORAMA ZINC PROJECT IN WESTERN AUSTRALIA IN RETURN FOR FUNDING RESEARCH STUDIES OVER THE NEXT TWO YEARS OUTOKUMPU IS EXPECTED TO ANNOUNCE A DECISION WITHIN TWO WEEKS TO PROCEED WITH DEVELOPMENT OF THE MOUNT KEITH NICKEL PROJECT IN WESTERN AUSTRALIA IN PARTNERSHIP WITH WESTERN MINING CORP SIPA RESOURCES INTERNATIONAL NL A WESTERN AUSTRALIAN EXPLORATION COMPANY ALREADY 14OWNED BY OUTOKUMPU SAID IT WILL ISSUE 67 MILLION SHARES AT 25 AUSTRALIAN CENTS 17 US CENTS EACH TO OUTOKUMPU THAT WILL RAISE THE FINNISH COMPANY'S STAKE TO 199 SIPA SHARES ARE CURRENTLY TRADING AT 23 CENTS OUTOKUMPU IS COMMITTED TO SPEND A5 MILLION ON EXPLORATION OF PANORAMA OVER TWO YEARS IT CAN THEN INCREASE ITS INTEREST IN THE PROSPECT TO 60 BY FUNDING COMPLETION OF A FEASIBILITY STUDY IF MINING PROCEEDS OUTOKUMPU WILL ARRANGE ALL FUNDING 9302160158 930216 HEARD ON THE STREET HOW STREET TURNS YOUR STOCK TRADES TO GOLD BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT DOES CHARLES SCHWAB THE NATION'S BIGGEST DISCOUNT BROKER DO WHEN ITS CUSTOMERS WANT TO BUY OR SELL AN OVERTHECOUNTER STOCK AFTER FIRST COLLECTING A COMMISSION ON THE TRADE SCHWAB AUTOMATICALLY ROUTES IT TO A NASDAQ MARKET MAKER IN JERSEY CITY NJ NAMED MAYER & SCHWEITZER MAYER & SCHWEITZER WHICH TRADES ORDERS FROM SCHWAB AND OTHER FIRMS IS OWNED BY SCHWAB LAST YEAR ITS REVENUE TOTALED ABOUT 130 MILLION SCHWAB WON'T DISCLOSE THE UNIT'S PROFIT THE QUESTION FOR INVESTORS IF SCHWAB GIVES ITS BROKERAGE CUSTOMERS THE BEST PRICE ON THEIR TRADES HOW CAN SCHWAB'S OTC MARKET MAKER PRODUCE REVENUE OF ABOUT 10 MILLION A MONTH THESE DAYS A NUMBER OF BIG WALL STREET BROKERAGE FIRMS NOT JUST SCHWAB BUT ALSO SUCH FIRMS AS SHEARSON LEHMAN BROTHERS AND MERRILL LYNCH & CO TURN THEIR CUSTOMERS' TRADES INTO PROFITABLE ASSETS MAKING A COMMISSION ON A TRADE IS ONLY THE BEGINNING OF THIS MONEYMAKING PROCESS INCREASINGLY WALL STREET FIRMS SEE THE LITTLE GUY'S STOCK ORDER AS THEIR OWN PROPERTY TO TRADE OR SELL WHAT'S IT WORTH TO THE STREET HUNDREDS OF MILLIONS OF DOLLARS A YEAR ORDER FLOW HAS BECOME AN ASSET TO BE SOLD SAYS ONE SENIOR NEW YORK STOCK EXCHANGE TRADER WHO DECLINES TO BE IDENTIFIED BECAUSE BROKERAGE FIRMS ARE HIS CLIENTS HE WORRIES THAT INCREASINGLY BROKERAGE FIRMS ARE AT WAR WITH THEIR CLIENTS THIS FUNDAMENTAL SHIFT DOESN'T DISTURB JOSEPH HARDIMAN CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS THE NASDAQ STOCK MARKET AS LONG AS YOU ARE RECEIVING THE BEST EXECUTION THEN THE ORDER IS AN ASSET OF THE BROKER DEALER HE SAYS FIRMS SUCH AS MERRILL LYNCH AND SCHWAB VIEW THEM AS IMPORTANT ASSETS TO TRADE FOR PROFIT BUT PROFESSOR JOHN COFFEE OF COLUMBIA LAW SCHOOL FRETS THAT BROKERS THESE DAYS OFTEN AREN'T TRUE AGENTS FOR THEIR CUSTOMERS' INTERESTS THEY HAVE BECOME SELFINTERESTED DEALERS WHEN YOU ARE A PURE AGENT YOU ARE SUPPOSED TO FIND THE BEST EXCHANGE OR MARKET TO SELL THE CLIENT'S SECURITY PROF COFFEE SAYS BUT TRADING CUSTOMER ORDERS WITH THE FIRM'S ACCOUNT DOES WORK AGAINST THE CLIENTS' INTEREST THERE ISN'T A COMPETITIVE MARKET FOR THE CLIENTS' ORDER WHICH MIGHT IMPROVE PRICES THE SECURITIES AND EXCHANGE COMMISSION SAYS WALL STREET'S TRICK OF TURNING ORDERS INTO ASSETS IS AN OPEN QUESTION WILLIAM HEYMAN THE SEC'S HEAD OF MARKET REGULATION SAYS THE PRACTICE WILL BE ONE OF THE IMPORTANT ISSUES COVERED IN THE COMMISSION'S MARKET 2000 STUDY DUE THIS YEAR THE NASD SAYS SMALL INVESTORS SHOULD ALWAYS GET THE BEST QUOTED BUYING BID OR SELLING OFFER PRICE FOR THEIR STOCK BUT THAT SPREAD BETWEEN BUYING AND SELLING PRICES OF NASDAQ ISSUES IS TYPICALLY WIDE FROM 25 CENTS TO 1 A SHARE WHICH ALLOWS MARKET MAKERS ROOM TO TRADE ORDERS FOR A PROFIT HUGO QUACKENBUSH SENIOR VICE PRESIDENT AT SCHWAB SAYS CUSTOMERS GET QUICK ASSURED EXECUTION OF THEIR TRADES THANKS TO SCHWAB'S MAYER & SCHWEITZER UNIT PRICES OF SMALL STOCKS CHANGE QUICKLY SO FAST EXECUTION BY MAYER & SCHWEITZER CAN SAVE CUSTOMERS MONEY HE NOTES BUT HE CONCEDES NASDAQ HAS SOME THINGS THAT CAN DISADVANTAGE THE CUSTOMER NO QUESTION ABOUT IT HE ADDS WE ARE MEETING THE STANDARDS OF THE INDUSTRY AND THE STANDARDS MAY NOT BE TIGHT ENOUGH AND RONALD READMOND CHIEF OPERATING OFFICER OF SCHWAB'S BROKERAGE UNIT SAYS I THINK THE SPREADS IN THE NASDAQ MARKET NEED TO BE TIGHTENED OVER TIME FOR NOW HOWEVER SCHWAB IS DOING A HEFTY BUSINESS DIRECTING ALL ITS OTC TRADES TO THE MAYER & SCHWEITZER UNIT LAST YEAR ABOUT 14 OF SCHWAB'S TOTAL REVENUE CAME FROM TRADING BY MAYER & SCHWEITZER INVESTORS MAY WONDER HOW WALL STREET BROKERAGE FIRMS MANAGE TO MAKE MONEY ON CUSTOMERS' TRADES GIVEN RULES THAT REQUIRE THE BROKERS TO FIND THEIR CLIENTS THE BEST PRICE ON NASDAQ THE ANSWER IS THAT DEALERS CAN TAKE ADVANTAGE OF THE WIDE SPREADS ON NASDAQ THE NASD HAS GIVEN WALL STREET FIRMS A SEMIPRIVATE SYSTEM TO ACCOMPLISH THIS IT'S CALLED SELECTNET AFTER THE 1987 STOCK MARKET CRASH THE NASD CREATED SELECTNET AS A SPECIAL ELECTRONIC DEALERONLY MARKET FOR NASDAQ STOCKS PRICES ARE OFTEN BETTER SPREADS ARE NARROWER ON SELECTNET THAN THE BEST BID OR OFFER PRICE ON THE NATIONAL NASDAQ SYSTEM EVEN SCHWAB OFFICIALS DON'T LIKE SELECTNET THOUGH MAYER & SCHWEITZER TRADES ON IT SELECTNET IS A WAY TO GO INSIDE YOUR BID AND OFFER WITHOUT CHANGING YOUR BID AND OFFER SAYS SCHWAB'S MR READMOND WE THINK THAT'S WRONG MANY BIG INSTITUTIONAL INVESTORS DON'T LIKE SELECTNET MICHAEL MURPHY HEAD OF TRADING AT MORGAN GRENFELL CAPITAL MANAGEMENT SAYS IF THERE IS A BETTER BID OR OFFER ON SELECTNET WE WOULD LIKE TO HAVE ACCESS TO IT HE COMPLAINS THAT SELECTNET'S SET OF BETTER STOCK PRICES ARE NOT EXTENDED TO CUSTOMERS THE NASD REFERS QUESTIONS ABOUT SELECTNET TO PETER B MADOFF VICE CHAIRMAN OF ITS BOARD OF GOVERNORS MR MADOFF SAYS THAT THE DURATION OF A SELECTNET PRICE IS SHORT IT CAN'T BE EASILY USED FOR PRICE IMPROVEMENT MAYBE SO BUT SELECTNET TRADING VOLUME TOTALED 247 BILLION SHARES LAST YEAR UP 50 FROM THE PREVIOUS YEAR PUT ANOTHER WAY 53 OF ALL SHARES TRADED ON NASDAQ LAST YEAR WERE HANDLED IN THE SEMIPRIVATE DEALER MARKET OF SELECTNET NOT EVERYONE ON WALL STREET THINKS BROKERAGE FIRMS SHOULD BE TRADING THEIR CUSTOMERS' OTC STOCK ORDERS AG EDWARDS DIRECTOR OF OPERATIONS ROBERT DISSETT SAYS MOST OF OUR OTC BUSINESS IS DONE WITH OTHER OTC HOUSES WE DON'T THINK IT'S FAIR FOR THE CUSTOMERS TO TRADE THE ORDERS FOR THE HOUSE ACCOUNT WE TRY TO ACT AS AGENT MERRILL LYNCH SAYS IT WILL TRADE DIRECTLY WITH ITS CLIENTS' OTC STOCK ORDERS BUT THE FIRM SAYS IT CAREFULLY INFORMS ITS CUSTOMERS THAT IT IS DOING SO SMITH BARNEY HARRIS UPHAM TRADES CUSTOMER OTC STOCK ORDERS WITH THE FIRM'S ACCOUNT WHY NOT A SMITH BARNEY OFFICIAL ARGUES CLIENTS KNOW IT IS A MARKET MAKER IN HUNDREDS OF OTC STOCKS AND CAN GIVE THE CLIENT AS GOOD A PRICE AS THE NEXT DEALER BUT UNLIKE SCHWAB SMITH BARNEY RARELY CHARGES A COMMISSION FOR TRADES DONE WITH THE HOUSE ACCOUNT THE FIRM MAINTAINS A CLEAR DISTINCTION BETWEEN THE ROLES OF AGENT AND PRINCIPAL AGENTS CHARGE COMMISSIONS DEALERS CHARGE MARKUPS SMITH BARNEY'S DEALER MARKUP MAY BE MORE EXPENSIVE OR CHEAPER THAN A COMMISSION DEPENDING ON THE TRADE THEY NEVER CHARGE A COMMISSION ON A PRINCIPAL TRADE WITHOUT CALLING ME SAYS SMITH BARNEY'S GENERAL COUNSEL A GEORGE SAKS ALL THESE PRACTICES INVOLVE OTC STOCKS WHAT HAPPENS TO STOCKS LISTED ON THE NEW YORK STOCK EXCHANGE BIG BOARD RULES SAY ORDERS FOR STOCKS LISTED THERE SHOULD BE EXPOSED TO OTHER PUBLIC ORDERS IN A PUBLIC AUCTION CONDUCTED BY A SINGLE BIG BOARD MARKET MAKER KNOWN AS A SPECIALIST THE BIG BOARD SAYS STUDIES SHOW THAT ITS AUCTION PROCESS ALLOWS CUSTOMERS TO DO BETTER THAN THE BEST QUOTED PRICE ABOUT ONETHIRD OF THE TIME YET WALL STREET BROKERS HAVE FOUND WAYS TO MAKE A PROFIT ON CUSTOMERS TRADES IN BIG BOARD STOCKS TOO THE SIMPLEST TRICK IS FOR THE BROKER TO SELL HIS CUSTOMERS' ORDERS TO ANOTHER MARKET MAKER ONE OF THE BIGGEST BUYERS OF TRADES IS BERNARD L MADOFF INVESTMENT SECURITIES MR MADOFF WHO IS THE BROTHER OF NASD VICE CHAIRMAN PETER MADOFF PAYS A PENNY A SHARE AND THEN TRADES THE ORDERS FOR A PROFIT LAST YEAR BERNARD MADOFF TRADED AN AVERAGE OF 740 MILLION A DAY IN BIG BOARD STOCKS AT HIS OFFEXCHANGE FIRM EQUAL TO ABOUT 9 OF THE BIG BOARD'S TOTAL DAILY VOLUME BERNARD MADOFF WHOSE TRADING OPERATION USES SOPHISTICATED COMPUTER SYSTEMS SAYS HE CAN NOW PROVIDE PRICE IMPROVEMENT THAT'S AS GOOD AS OR BETTER THAN THE BIG BOARD'S AUCTION MARKET WE EXECUTE FOR ABOUT 350 NEW YORK MEMBER FIRMS HE SAYS PROUDLY BERNARD MADOFF'S ACTIVITIES HAVE ATTRACTED SOME ATTENTION BUT INVESTORS DON'T REALIZE THAT WALL STREET FIRMS HAVE FOUND STILL ANOTHER WAY TO TURN CUSTOMERS' TRADES IN BIG BOARD STOCKS INTO PROFITABLE ASSETS FIRMS SUCH AS SHEARSON PERSHING & CO A DIVISION OF DONALDSON LUFKIN & JENRETTE AND OTHERS ARE ENGAGING IN A PRACTICE STILL SHROUDED IN SECRECY CALLED PREFERENCING PREFERENCING TAKES PLACE ON THE CINCINNATI STOCK EXCHANGE WHAT'S THE CINCINNATI EXCHANGE IT'S REALLY A COMPUTER OPERATED IN CHICAGO A DOCUMENT CIRCULATED BY THE CINCINNATI EXCHANGE PROMOTES PREFERENCING AS A WAY FOR WALL STREET FIRMS TO MAKE MONEY TRADING AGAINST THEIR SMALL OR RETAIL CUSTOMERS THE DOCUMENT SAYS PREFERENCING PROVIDES AN OPPORTUNITY AND A METHOD FOR FIRMS TO TRADE AGAINST THEIR OWN ORDER FLOW FROM THEIR RETAIL CUSTOMERS AND CORRESPONDENTS SHEARSON LEHMAN BROTHERS USES A HIGHTECHNOLOGY TRADING SYSTEM TO PREFERENCE WHEN A CUSTOMER BUYS OR SELLS A BIG BOARDLISTED STOCK THROUGH SHEARSON THE ORDER IS SENT TO SHEARSON'S COMPUTER WHICH DECIDES WHETHER THE FIRM CAN TRADE THE ORDER AGAINST ITS OWN ACCOUNT FOR A PROFIT OR NOT IF YES THEN SHEARSON TAKES THE ORDER AND TRADES WITH ITSELF IN CINCINNATI WHERE SHEARSON IS A DEALER IF THE COMPUTER DECIDES IT'S NOT A PROFITABLE TRADE FOR SHEARSON THE CUSTOMER'S ORDER IS SENT TO THE BIG BOARD OR SOME OTHER EXCHANGE SAYS A SHEARSON SPOKESMAN WHEN SHEARSON USES THIS SYSTEM THE CUSTOMERS ALWAYS RECEIVE THE NATIONAL BEST BID OR OFFER PRICE OR EVEN BETTER NEVER LESS CINCINNATI STOCK EXCHANGE CHAIRMAN FREDERICK MOSS SAYS WALL STREET FIRMS THAT PREFERENCE TRADE OFTEN BETTER THE BEST BID OR OFFER BY THE WAY ONE OF HIS ASSOCIATES ON THE CINCINNATI STOCK EXCHANGE IS PETER MADOFF WHO SITS ON THE EXCHANGE'S BOARD BUT MR MOSS CONCEDES THERE ARE A LOT OF PEOPLE WHO DON'T LIKE WHAT WE ARE DOING NOT SURPRISINGLY ONE OPPONENT OF PREFERENCING IS THE BIG BOARD IT DOESN'T LIKE TO SEE ORDERS TAKEN AWAY FROM ITS PUBLIC AUCTION MARKET EDWARD KWALWASSER BIG BOARD EXECUTIVE VICE PRESIDENT OF REGULATION SAYS PREFERENCING IS INCONSISTENT WITH AUCTION MARKET RULES THE STRENGTH OF THE BIG BOARD'S PRICING SYSTEM ORDER FLOW IS BEING TURNED INTO AN ASSET MR KWALWASSER SAYS WE BELIEVE IT IS THE WRONG THING BUT BIG BOARD OFFICIALS ACKNOWLEDGE THAT PREFERENCING DOESN'T VIOLATE CURRENT EXCHANGE RULES ALL THIS LOOKS FAMILIAR PREFERENCING RESEMBLES THE WAY MANY WALL STREET FIRMS NOW TREAT CUSTOMERS' OTC TRADES GIVING THE CUSTOMER THE BEST PRICE AND THEN FINDING AN EVEN BETTER PRICE FOR THE BROKERAGE FIRMS' OWN ACCOUNT 9302160157 930216 WHO'S NEWS SULLIVAN NAMED CEO PRESIDENT OF AMERICAN HEALTH PROPERTIES INC DENVER AMERICAN HEALTH PROPERTIES INC SAID JOSEPH P SULLIVAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING ROBERT LB DIENER WHO RESIGNED AFTER LESS THAN A YEAR AS CHIEF EXECUTIVE MR SULLIVAN 50 YEARS OLD WORKED FOR 20 YEARS AT GOLDMAN SACHS & CO AND WAS THE FINANCIAL ADVISER TO AMERICAN HEALTH PROPERTIES' BOARD AT GOLDMAN SACHS HE WAS INVOLVED IN THE REAL ESTATE INVESTMENT TRUST'S 1987 INCEPTION MR DIENER RESIGNED IN DECEMBER EFFECTIVE JAN 15 TO PURSUE OTHER OPPORTUNITIES THE COMPANY SAID HE WOULD REMAIN A DIRECTOR AND CONSULTANT CHAIRMAN WALTER J MCNERNEY SERVED AS INTERIM PRESIDENT AND CHIEF EXECUTIVE AMERICAN HEALTH PROPERTIES WRESTLING WITH ITS DEBT LOAD HAS SOLD SOME ASSETS TO IMPROVE LIQUIDITY AND AS RECENTLY AS LAST YEAR IT CONSIDERED MERGING WITH ANOTHER REAL ESTATE INVESTMENT TRUST AFTER THE ANNOUNCEMENT STANDARD & POOR'S CORP AFFIRMED ITS DOUBLEBPLUS RATING ON AMERICAN HEALTH PROPERTIES AND REMOVED IT FROM CREDITWATCH WHERE IT WAS PLACED AUG 31 S&P SAID THE PERFORMANCE OF THE COMPANY'S OVERALL PORTFOLIO WHICH SPECIALIZES IN HEALTHCARE FACILITIES HAS STABILIZED FOR 1992 AMERICAN HEALTH PROPERTIES HAD A LOSS OF 63 MILLION OR 37 CENTS A SHARE WHICH INCLUDED A PRETAX NONRECURRING GAIN OF 11 MILLION AND A ONETIME PRETAX CHARGE OF 45 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY AMERICAN HEALTH PROPERTIES CLOSED AT 2425 UP 625 CENTS 9302160156 930216 CANADIAN AUTO TRIPS TO THE US OTTAWA CANADIAN SAMEDAY AUTO TRIPS TO THE US AN INDICATOR OF CROSSBORDER SHOPPING TOTALED A SEASONALLY ADJUSTED 4167000 IN DECEMBER OFF 19 FROM 4247000 IN NOVEMBER STATISTICS CANADA SAID THE DECEMBER FIGURE WAS THE LOWEST SEASONALLY ADJUSTED NUMBER OF SAMEDAY AUTO TRIPS BY CANADIAN RESIDENTS TO THE US SINCE APRIL 1990 THE AGENCY SAID STATISTICS CANADA SAID SAMEDAY CROSSBORDER AUTOMOBILE TRIPS BY CANADIAN RESIDENTS FELL THROUGHOUT 1992 9302160155 930216 WHO'S NEWS CATELLUS DEVELOPMENT CORP CATELLUS DEVELOPMENT CORP SAN FRANCISCO JOHN E NEAL A VICE PRESIDENT AT KEMPER FINANCIAL SERVICES INC IN CHICAGO WAS ONE OF FOUR NEW DIRECTORS ELECTED AT THIS REAL ESTATE DEVELOPMENT COMPANY EXPANDING THE BOARD TO 13 MEMBERS ALSO ELECTED WERE JOSEPH R SEIGER A FOUNDING PARTNER AT VINTAGE PROPERTIES IN FOSTER CITY CALIF JACQUELINE R SLATER MANAGING DIRECTOR AT CHEMICAL BANK IN NEW YORK AND TOM C STICKEL FOUNDER OF AMERICAN PROPERTIES INC IN SAN DIEGO 9302160154 930216 SOUTHMARK SETTLES WITH RTC DALLAS SOUTHMARK CORP SAID IT SETTLED LITIGATION WITH THE RESOLUTION TRUST CORP AND WOULD PAY 8 MILLION TO RETAIN OWNERSHIP OF FORMER WESTERN SAVINGS & LOAN ASSOCIATION ASSETS SOUTHMARK ONCE A HIGHFLYING REALESTATE AND SAVINGS AND LOAN CONCERN THAT IS LIQUIDATING ITS ASSETS AS PART OF A BANKRUPTCYREORGANIZATION PLAN SAID THE ASSETS INCLUDE UNSECURED CLAIMS SECURED NOTES AND SOME MORTGAGE PARTICIPATIONS 9302160153 930216 WHO'S NEWS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY CHRISTOPHER J STEFFEN WHO STARTED WORK LAST WEEK AS THIS COMPANY'S CHIEF FINANCIAL OFFICER WAS GIVEN THE ADDED TITLE OF SENIOR VICE PRESIDENT MR STEFFEN 50 YEARS OLD WILL STAND ELECTION TO THE BOARD THIS SPRING RESULTS WILL BE ANNOUNCED AT THE ANNUAL MEETING MAY 12 MR STEFFEN WHO HAS BEEN HAILED AS A TURNAROUND ARTIST HAS SAID IT WOULD BE DIFFICULT TO DO HIS JOB AT KODAK IF HE IS NOT ELECTED TO THE BOARD HE IS EXPECTED TO FILL A SEAT LEFT VACANT BY HIS PREDECESSOR AS CHIEF FINANCIAL OFFICER PAUL SMITH 57 WHO RETIRED IN DECEMBER KODAK IS A PHOTOGRAPHY CHEMICALS AND HEALTH CARE CONCERN 9302160152 930216 FINANCING BUSINESS LORAL CORP LORAL CORP'S COMMERCIAL PAPER WAS ASSIGNED A PRIME2 SHORTTERM RATING BY MOODY'S INVESTORS SERVICE INC MOODY'S SAID THE RATING RECOGNIZES LORAL'S LEADING MARKET POSITION IN DEFENSE ELECTRONICS ITS HIGHTECHNOLOGY ORIENTATION AND GOOD BUSINESS PROSPECTS THE RATING ALSO REFLECTS THE CONTINUING PRESSURES ON DEFENSE BUDGETS AND THE NEW YORK COMPANY'S LARGELY DEBTFINANCED ACQUISITION STRATEGY THE AGENCY SAID 9302160151 930216 WHO'S NEWS NOWSCO WELL SERVICE LTD NOWSCO WELL SERVICE LTD CALGARY ALBERTA THIS OILWELL DRILLING AND SERVICE COMPANY NAMED RON FE SIMARD PRESIDENT SUCCEEDING S PATRICK SHOULDICE 57 YEARS OLD WHO IS RETIRING MR SIMARD 48 WAS ALSO NAMED A DIRECTOR AND REMAINS CHIEF OPERATING OFFICER NOWSCO ALSO NAMED ALASTAIR ROBERTSON CHIEF FINANCIAL OFFICER MR ROBERTSON 40 SUCCEEDS ALAN DAY 54 WHO IS RETIRING MR ROBERTSON WILL REMAIN CORPORATE TREASURER THE COMPANY SAID S PATRICK SHOULDICE IS CONTINUING AS CHAIRMAN AND CHIEF EXECUTIVE OF NOWSCO WELL SERVICE LTD AFTER RESIGNING THE PRESIDENCY OF THE COMPANY TUESDAY'S WHO'S NEWS COLUMN IMPLIED THAT HE WAS RETIRING FROM ALL HIS POSITIONS 9302160150 930216 WHO'S NEWS AMSCO INTERNATIONAL INC AMSCO INTERNATIONAL INC PITTSBURGH DANIEL P BARRY 45 RESIGNED AS SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER TO PURSUE PERSONAL INTERESTS MR BARRY WILL REMAIN ON THE BOARD STEVEN F KREGER 41 WAS NAMED ACTING CHIEF FINANCIAL OFFICER MR KREGER IS VICE PRESIDENT AND CONTROLLER OF THIS MAKER OF DECONTAMINATION AND INFECTION CONTROL PRODUCTS 9302160149 930216 WHO'S NEWS HAROLD'S STORES INC HAROLD'S STORES INC NORMAN OKLA REBECCA POWELL CASEY 41 SENIOR VICE PRESIDENT IN CHARGE OF MERCHANDISING AND PRODUCT DEVELOPMENT OF THIS SPECIALTY STORE WAS NAMED VICE CHAIRWOMAN AND CHIEF EXECUTIVE OFFICER H RAINEY POWELL 39 CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDED POSITIONS OF VICE CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER THE TWO EXECUTIVES SUCCEED THEIR FATHER HAROLD G POWELL 68 WHO WILL REMAIN CHAIRMAN ADDITIONALLY KENNETH C ROW 28 FORMER VICE PRESIDENT MARKETING WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT AND TO THE BOARD INCREASING THE BOARD'S SIZE TO 10 9302160148 930216 US SHOE SAYS LOSS IN FOOTWEAR DIVISION HURT FOURTH PERIOD CINCINNATI US SHOE CORP SAID IT EXPECTS THAT A LOSS IN ITS FOOTWEAR DIVISION WILL SUBSTANTIALLY WIPE OUT OPERATING INCOME OF OTHER SECTORS IN ITS FISCAL FOURTH QUARTER IN THE YEAREARLIER PERIOD THE APPAREL OPTICAL AND FOOTWEAR RETAILER EARNED 126 MILLION OR 28 CENTS A SHARE THE COMPANY BLAMED POOR SALES IN ITS COBBIE DIVISION AND MARKDOWNS TO CLEAR INVENTORY IN ITS BANISTER MARX & NEWMAN AND EASY SPIRIT FOR MEN DIVISIONS A RESERVE BECAUSE OF A BANKRUPTCY FILING BY AN INDEPENDENT STORE OPERATOR ALSO HURT RESULTS AND THE COMPANY POINTED TO NONRECURRING COSTS INCLUDING THOSE ASSOCIATED WITH CONSOLIDATING ITS DOMESTIC AND IMPORT FOOTWEAR OPERATIONS AND THE DISPOSITION OF CERTAIN ASSETS FOOTWEAR MADE UP 27 OF US SHOE'S 273 BILLION IN SALES IN THE YEAR ENDED FEB 1 1992 THE DIVISION'S AILMENTS MARK YET ANOTHER SETBACK FOR US SHOE IT HAS BATTLED LACKLUSTER SALES IN ITS WOMEN'S APPAREL SECTOR FOR MONTHS LARGELY BECAUSE OF MERCHANDISING CHANGES AT ITS BIGGEST SALES GENERATOR THE CASUAL CORNER CHAIN SEVERAL OF THE FACTORS CONTRIBUTING TO THESE RESULTS WILL NOT BE PRESENT IN THE FIRST QUARTER OF 1993 SAID BANNUS B HUDSON PRESIDENT AND CHIEF EXECUTIVE OFFICER IN A STATEMENT MOREOVER I BELIEVE THAT WITH SOME CHANGES IN BUSINESS PRACTICES AND A REFOCUSING OF THE ORGANIZATION ON THE FUNDAMENTALS OF PRODUCT AND SELLING WE CAN RETURN TO ACCEPTABLE BUSINESS LEVELS IN A REASONABLE LENGTH OF TIME AND WITH AVAILABLE RESOURCES 9302160147 930216 PHILADELPHIA ELECTRIC CO PHILADELPHIA PHILADELPHIA ELECTRIC CO SAID IT WILL ASK SHAREHOLDERS AT THE ANNUAL MEETING TO APPROVE CHANGING THE COMPANY'S NAME TO PECO ENERGY CO THE ELECTRIC AND GAS UTILITY SAID THE CHANGE WOULD MORE ACCURATELY REFLECT THE COMPANY AS SERVING A BROADER TERRITORY AND ALSO RECOGNIZES THAT THE COMPANY PROVIDES BOTH ELECTRIC AND GAS SERVICES THE COMPANY SAID ITS CORPORATE HEADQUARTERS WOULD REMAIN IN PHILADELPHIA IF APPROVED THE NAME CHANGE WOULD BE EFFECTIVE JAN 9302160146 930216 PROVENTUS GETS STAKE IN ARITMOS STOCKHOLM IN A STOCK MARKET RAID STOCKHOLM INVESTMENT GROUP PROVENTUS AB SNAPPED UP 394 OF AB ARITMOS A SWEDISH CONCERN THAT ASSEMBLED A SPATE OF PROMINENT SPORTINGGOODS BRANDS IN RECENT YEARS BUT HASN'T YET MADE ITS COLLECTION PAY OFF THE TRANSACTION WAS VALUED AT 730 MILLION SWEDISH KRONOR 977 MILLION IN ADDITION TO DEEP POCKETS AND CONSIDERABLE INTERNATIONAL EXPERIENCE PROVENTUS IS REGARDED AS ONE OF SWEDEN'S MOST DYNAMIC INSTITUTIONAL INVESTORS AND PROMISES TO TAKE AN ACTIVE MANAGEMENT ROLE AT ARITMOS 9302160145 930216 TECHNOLOGY & HEALTH SCIENTISTS GO BACK TO FOLK REMEDIES FIND IDEAS FOR FUTURE SUBSTANCE FOUND IN STOMACHS OF SHARKS HAS POTENTIAL USE AS ANTIBIOTIC FOR HUMANS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PRACTITIONERS OF FOLK MEDICINE WHO CONCOCTED HEALING POTIONS FROM EYE OF NEWT LIZARD'S LEGS AND OTHER ANIMAL PARTS MAY HAVE BEEN ON TO SOMETHING SCIENTISTS HAVE FOUND A SUBSTANCE IN THE STOMACH OF SHARKS THAT APPEARS TO HAVE BROAD ANTIBIOTIC POTENTIAL IN HUMANS ACCORDING TO A REPORT IN THE NEW ISSUE OF THE BIMONTHLY PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES THE DRUG SQUALAMINE WAS DISCOVERED BY MICHAEL ZASLOFF WHO A FEW YEARS AGO ALSO FOUND AN ANTIBIOTIC IN FROG SKIN THAT CURRENTLY IS BEING TESTED IN HUMANS BY MAGAININ PHARMACEUTICALS INC IN PLYMOUTH MEETING PA WHERE HE IS EXECUTIVE VICE PRESIDENT THE DISCOVERY REFLECTS A TREND MOST DRUGS ARE EITHER SYNTHETIC OR ARE DERIVED FROM PLANTS OR IN THE CASE OF ANTIBIOTICS FROM SOIL BACTERIA BUT AS THE TRADITIONAL MASS SCREENINGS OF PLANT AND SOIL SAMPLES BECOME LESS FRUITFUL SCIENTISTS AND DRUG MAKERS ARE TURNING TO ANIMALS FOR NEW MEDICINES THE HEART DRUG CAPTROPRIL SOLD BY BRISTOLMYERS SQUIBB CO AS CAPOTEN WAS FIRST DISCOVERED IN SNAKE VENOM FOR INSTANCE AND MERCK & CO SCIENTISTS HAVE FOUND THAT THE SALIVA OF BLOODSUCKING CREATURES LIKE BATS AND TICKS CONTAINS PROTEINS THAT DISSOLVE BLOOD CLOTS WHICH COULD BE USEFUL IN HEART ATTACKS AND OTHER DISORDERS WHILE WATCHING RESEARCHERS IN MAINE DISSECT A PREGNANT SHARK DR ZASLOFF SAYS HE NOTICED THE UNBORN PUPS DIDN'T HAVE INFECTIONS EVEN THOUGH THE MOTHER'S UTERUS WAS FILLED WITH SEAWATER WHICH IS NOTORIOUSLY RIFE WITH BACTERIA IT STRUCK ME THAT SHE HAS TO HAVE A WAY OF STERILIZING THE FLUID THAT SHE BRINGS IN FROM THE OCEAN SAID DR ZASLOFF WHO WAS AT THE TIME A PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA SCHOOL OF MEDICINE AND DIVISION CHIEF OF CHILDREN'S HOSPITAL OF PHILADELPHIA IN STUDIES WITH OTHER ANIMALS SUCH AS FROGS COWS AND MAN DR ZASLOFF AND HIS COLLEAGUES AT THE UNIVERSITY OF PENNSYLVANIA KNEW THE GASTROINTESTINAL TRACT OFTEN HARBORS SUBSTANCES THAT ACT AS ANTIBIOTICS IN THE CASE OF THE SHARK THEY FOUND A MOLECULE THAT IN TEST TUBES KILLED A BROAD RANGE OF MICROBES MORE IMPORTANT TO ITS COMMERCIAL POTENTIAL THE MOLECULE WAS SMALL ENOUGH TO BE ACTIVE IF TAKEN BY MOUTH RATHER THAN INJECTION BUT FROGS AND SHARKS CAN REST EASY IF THE ANTIBIOTICS PROVE TO BE SAFE AND EFFECTIVE IN HUMANS AND ARE CLEARED BY THE FOOD AND DRUG ADMINISTRATION BOTH DRUGS WILL BE MADE SYNTHETICALLY OR THROUGH BIOTECHNOLOGY PROCESSES MAGAININ OFFICIALS SAY THEY WON'T BE EXTRACTED FROM THE ANIMALS THEMSELVES 9302160144 930216 ALCOA TO REDEEM ITS 625 DEBT PITTSBURGH ALUMINUM CO OF AMERICA SAID IT WILL REDEEM ALL 149 MILLION OF ITS 625 CONVERTIBLE DEBENTURES HOLDERS CAN CONVERT THE DEBENTURES INTO STOCK AT A PRICE OF 62 A SHARE UNTIL THE REDEMPTION DATE OF MARCH 26 9302160143 930216 ACME METALS LABOR AGREEMENT RIVERDALE ILL ACME METALS INC SAID IT REACHED A LABOR AGREEMENT WITH 1600 MEMBERS OF THE UNITED STEELWORKERS UNION TERMS WEREN'T DISCLOSED THE CONTRACT WILL EXPIRE AUG 31 1993 IT REPLACES ONE THAT EXPIRED AUG 31 1992 BUT HAD BEEN EXTENDED THREE TIMES THE STEELMAKER SAID IT COULDN'T NEGOTIATE A LONGERTERM AGREEMENT BECAUSE THE COMPANY HASN'T YET DETERMINED WHETHER IT WILL PROCCEED WITH A NEW THINSLAB CONTINUOUS CASTER AND HOT STRIP MILL THE NEW FACILITY WHICH WOULD BE THE FIRST FOR AN INTEGRATED STEELMAKER IN THE US WILL BE PRESENTED TO ACME'S BOARD THIS MONTH 9302160142 930216 BRITISH RETAIL PRICES LONDON BRITAIN'S RETAIL PRICE INDEX ROSE 17 IN JANUARY FROM THE YEAR BEFORE AND WAS DOWN 09 FROM DECEMBER THE CENTRAL STATISTICAL OFFICE SAID THE YEARONYEAR RISE WAS THE SMALLEST SINCE SEPTEMBER 1967 WHEN PRICES INCREASED 15 THE MONTHLY DECLINE WAS THE STEEPEST SINCE JULY 1958 WHEN PRICES FELL 15 FROM THE MONTH EARLIER THE UNDERLYING INDEX WHICH EXCLUDES MORTGAGEINTEREST PAYMENTS ROSE 32 ON THE YEAR AND WAS DOWN 05 ON THE MONTH THE YEARONYEAR RISE IN THE UNDERLYING INDEX WAS THE SMALLEST SINCE MAY 1986 WHEN PRICES ROSE 31 9302160141 930216 TECHNOLOGY RHONEPOULENC RORER MARION MERRELL DOW SUE THE OTHER FIRM COLLEGEVILLE PA RHONEPOULENC RORER INC AND MARION MERRELL DOW INC ENDED A SIXMONTH TRUCE AND SUED EACH OTHER OVER THEIR COMPETING HYPERTENSION TREATMENTS RHONEPOULENC FILED SUIT FRIDAY CHARGING MARION MERRELL WITH ADVERTISING THAT RHONE POULENC'S GENERIC VERSION DILACOR XR IS LESS POTENT THAN MARION MERRELL'S CARDIZEM CD THAT SAME DAY MARION MERRELL SUED RHONEPOULENC ALLEGING IT WAS INAPPROPRIATELY IMPLYING THAT DILACOR XR IS A PROPER SUBSTITUTE FOR CARDIZEM CD WE DON'T THINK RHONEPOULENC'S LAWSUIT HAS ANY MERIT BECAUSE SCIENTIFIC STUDIES SHOW THAT THE TWO COMPANIES' PRODUCTS HAVE SIGNIFICANTLY DIFFERENT POTENCIES SAID A MARION MERRELL SPOKESMAN RHONEPOULENC OFFICIALS COULDN'T BE REACHED TO COMMENT HOWEVER IN A WRITTEN STATEMENT THE COMPANY CHARGED MARION MERRELL WITH DEFYING AN EARLIER SETTLEMENT DUE TO THEIR CONCERN THAT DILACOR XR REPRESENTS A REAL COMPETITIVE THREAT IN THE HYPERTENSION MARKET IN AUGUST THE TWO COMPANIES SETTLED SIMILAR CHARGES UNDER THE AGREEMENT'S TERMS RHONEPOULENC ACKNOWLEDGED THAT DILACOR XR ISN'T A GENERIC SUBSTITUTE FOR CARDIZEM CD MARION MERRELL AGREED THAT THE TWO PRODUCTS OFFER SIMILAR POTENCIES BASED ON DATA AVAILABLE AT THAT TIME 9302160140 930216 CARDIS CONSOLIDATION LAYOFFS LOS ANGELES CARDIS CORP A SELLER AND DISTRIBUTOR OF AUTOMOTIVE SUPPLIES SAID IT WILL MOVE ITS HEADQUARTERS TO SAN DIEGO FROM BUENA PARK CALIF AND LAY OFF ABOUT 90 OF ITS 450 STATEWIDE WORKERS IN A CONSOLIDATION CARDIS EMPLOYS ABOUT 100 WORKERS AT ITS BUENA PARK WAREHOUSE AND 40 AT ITS HEADQUARTERS THERE THAT WAREHOUSE WILL BE CLOSED AND ITS OPERATIONS COMBINED WITH A WAREHOUSE IN SAN YSIDRO CALIF KENNETH CLEVELAND PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE DECISION WAS BASED ON CARDIS'S NEED TO BE CLOSER TO ITS MOST IMPORTANT MARKET CARDIS PLANS TO EXPAND ITS RETAIL AND DISTRIBUTION OPERATIONS IN THE SAN DIEGO AREA HE ADDED 9302160139 930216 INTERNATIONAL AN ITALIAN POPULIST TAKES ON THE MAFIA HOPING TO WIPE THE POLITICAL SLATE CLEAN BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL DAVOS SWITZERLAND BY TELEPHONE JUST HOURS BEFORE HIS SCHEDULED ARRIVAL LEOLUCA ORLANDO APOLOGIZES BUT HE WON'T BE COMING TO ADDRESS AN INTERNATIONAL CONFERENCE IN DAVOS AFTER ALL BUT AN HOUR LATER MR ORLANDO'S STAFF CALLS BACK TO SAY THEIR BOSS WHO HEADS A POWERFUL NEW ITALIAN POPULIST MOVEMENT WILL INDEED SHOW UP THOUGH LATE THIS IS FOLLOWED BY TWO FURTHER CONTRADICTORY MESSAGES ABOUT THE ARRIVAL OR NONARRIVAL OF THE MAVERICK POLITICIAN THE CONFUSION IS DELIBERATE MR ORLANDO A SICILIAN POLITICIAN LAWYER AND AUTHOR IS THOUGHT TO BE NEAR THE TOP OF THE MAFIA'S HIT LIST BECAUSE OF HIS PERSISTENT CAMPAIGN TO ROOT OUT ORGANIZED CRIME IN ITALIAN POLITICS AND SOCIETY IN THE PAST DECADE THE MAFIA HAS MURDERED OTHERS WHO EMBRACED THE SAME CAUSE INCLUDING PROMINENT JUDGES POLICEMEN AND POLITICIANS MR ORLANDO DOESN'T USUALLY SPEND TWO NIGHTS IN THE SAME PLACE FREQUENTLY CHANGES HIS SCHEDULE AND GENERALLY TRIES TO KEEP HIS MOVEMENTS SECRET FAMILY MEMBERS RARELY TRAVEL WITH HIM OR APPEAR WITH HIM IN PUBLIC OUTSIDE OBSERVERS DON'T THINK THE DANGER TO THE SICILIAN'S LIFE IS OVERSTATED WHEN SOMEONE BREAKS RANKS AS RADICALLY AS ORLANDO DOES THERE IS A HIGHER RISK FACTOR THAN YOU WOULD FIND ELSEWHERE ON THE ITALIAN PENINSULA OR IN OTHER PLACES IN THE WORLD SAYS JOSEPH LAPALOMBARA A PROFESSOR OF POLITICAL SCIENCE AT YALE UNIVERSITY WHO HAS WRITTEN EXTENSIVELY ON ITALIAN POLITICS AS MAYOR OF THE SICILIAN CAPITAL OF PALERMO IN THE MID1980S MR ORLANDO WRENCHED LUCRATIVE CONSTRUCTION CONTRACTS OUT OF THE HANDS OF THE MAFIA THEN JUST THREE YEARS AGO HE BROKE AWAY IN DISGUST FROM THE ESTABLISHED CHRISTIAN DEMOCRATIC PARTY TO FOUND HIS ANTICORRUPTION PARTY LA RETE THE NEW PARTY WHOSE NAME MEANS THE NET IN ITALIAN HAS ENJOYED CONSIDERABLE SUCCESS AT THE POLLS PARTICULARLY IN SICILY AND THE SOUTH OF ITALY MR ORLANDO IS RIDING A WAVE OF PUBLIC DISGUST AGAINST CORRUPTION AND MAFIA INFLUENCE IN ITALY JUST LAST WEEK THE ITALIAN JUSTICE MINISTER CLAUDIO MARTELLI AND SOCIALIST PARTY BOSS BETTINO CRAXI A FORMER PRIME MINISTER RESIGNED AFTER BEING INFORMED THEY WERE UNDER INVESTIGATION IN CONNECTION WITH A RAPIDLY EXPANDING POLITICALPAYOFF SCANDAL MR ORLANDO'S POLITICAL RISE COINCIDES WITH A CRACKDOWN THAT'S GENERATED DOZENS OF ARRESTS THROUGHOUT ITALY BUT ALSO SPARKED A WAVE OF MAFIADIRECTED REPRISALS AGAINST OUTSPOKEN REFORMERS BUT MR ORLANDO INSISTS THE BATTLE AGAINST CORRUPTION AND ORGANIZED CRIME IN ITALY AND SICILY IS NO LONGER A NATIONAL BATTLE IT'S AN INTERNATIONAL BATTLE HE ADDS IN ONE OF A STRING OF MEETINGS HE HELD WITH JOURNALISTS BUSINESS EXECUTIVES CRITICS AND ADMIRERS THERE IS NO LONGER A CONTEST BETWEEN EAST AND WEST NO LONGER A COLD WAR BUT THERE IS A WAR BETWEEN LEGALITY AND ILLEGALITY WE MUST BUILD AN INTERNATIONAL LEVEL OF LEGALITY THIS WEEK HE VISITS NEW YORK AND WASHINGTON TO GATHER SUPPORT FOR HIS MOVEMENT A SPOKESMAN SAYS HE HAS APPOINTMENTS WITH NEW YORK MAYOR DAVID DINKINS HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS AND OFFICIALS AT THE STATE DEPARTMENT AND SENATE MUCH AS ROSS PEROT'S THROWTHEBUMSOUT RHETORIC WON WIDE SUPPORT IN THE US MR ORLANDO'S CRUSADE HAS WON PLAUDITS IN EUROPE IN DAVOS ITALIAN RESTAURANT STAFF MEMBERS APPEAR AFTER DINNER EAGER TO BE PHOTOGRAPHED WITH THE CHARISMATIC 45YEAROLD POLITICIAN MR ORLANDO IS VERY CONTROVERSIAL SAYS YALE'S MR LAPALOMBARA SOME PEOPLE BELIEVE HE'S A KNIGHT IN SHINING ARMOR OTHERS THINK HE'S A DEMAGOGUE I THINK THE TRUTH LIES SOMEWHERE IN BETWEEN BUT MR LAPALOMBARA SAYS THAT MR ORLANDO AND OTHERS SUCH AS MR PEROT ARE STRIKING A CHORD OF PUBLIC DISILLUSIONMENT WITH GOVERNMENT GRAFT AND A WIDESPREAD FEELING THAT THE ESTABLISHED SYSTEM ISN'T CLEANING UP THE CORRUPTION BUT SEVERAL ITALIAN BUSINESSMEN ATTENDING THE CONFERENCE IN DAVOS ARGUED THAT MR ORLANDO SHOULD VOICE HIS CRITICISM OF THEIR COUNTRY'S INSTITUTIONS AT HOME AND NOT EXPORT IT FOR FOREIGN CONSUMPTION MR ORLANDO ISN'T PUT OFF BY SUCH CRITICS FOR A WHILE ITALIANS AND OTHERS PUT UP WITH A DEGREE OF CORRUPTION EVEN TOLERATING ORGANIZED CRIME OUT OF A FEAR THAT LOCAL COMMUNIST PARTIES WOULD GAIN CLOUT US INVADING FORCES IN WORLD WAR II EVEN USED SICILIAN MOBSTERS TO HELP PLAN AND EXECUTE THE INVASION OF SICILY IN 1943 THE MOB US OFFICIALS ARGUED HAD THE VIRTUE OF BEING OPPOSED TO BOTH ITALIAN DICTATOR BENITO MUSSOLINI AND THE COMMUNISTS MR ORLANDO AND HIS SUPPORTERS MAINTAIN THAT ORGANIZED CRIME FLOURISHED BECAUSE PEOPLE AT THE HIGHEST LEVELS OF SOCIETY ARE PROTECTING THE MAFIA HE WANTS TO ABOLISH PARLIAMENTARY IMMUNITY FOR CRIMINAL ACTS AND DO AWAY WITH A BILLIONDOLLAR DEVELOPMENT FUND FOR SOUTHERN ITALY WHICH HE SAYS CORRUPTS POLITICIANS AND FEEDS THE MAFIA'S COFFERS THE POPULIST APPROACH HAS SERVED MR ORLANDO WELL THROUGHOUT HIS POLITICAL CAREER AS PALERMO MAYOR MR ORLANDO DID MUCH TO ATTACK THE POWER OF THE MAFIA HE SWITCHED GOVERNMENT CONSTRUCTION CONTRACTS TO A COMPETITIVE BIDDING SYSTEM TO BREAK THE MAFIA'S HOLD OVER THIS LUCRATIVE BUSINESS HE WOULD ALSO SIT IN COURT WITH THE WIDOWS AND CHILDREN OF MAFIA VICTIMS AND ENCOURAGED OTHERS TO MAKE SUCH PUBLIC DISPLAYS OF THEIR OPPOSITION TO THE MOB HIS APPROACH SEEMS TO BE WORKING IN ELECTIONS LAST APRIL LA RETE TOOK ABOUT A FIFTH OF THE VOTE IN PALERMO AND POLLED SUFFICIENT VOTES ACROSS THE COUNTRY TO LAND 12 SEATS IN ITALY'S LOWER HOUSE AND THREE IN THE SENATE MR ORLANDO'S MOVEMENT AND THE BETTERKNOWN AND BIGGER SEPARATIST NORTHERN LEAGUE PARTY BOTH ARE USING THE RECENT SPATE OF POLITICAL SCANDALS IN ITALY TO BUILD A STRONG CHALLENGE TO THE ESTABLISHED CHRISTIAN DEMOCRAT AND SOCIALIST PARTIES IN APRIL'S NATIONAL ELECTIONS THE CHRISTIAN DEMOCRATS POLLED LESS THAN 30 OF THE VOTE FOR THE FIRST TIME SINCE THE WAR WHILE THE CURRENT CORRUPTION INVESTIGATIONS HAVE STRONG MOMENTUM NO ONE IS CERTAIN WHERE THEY WILL TAKE ITALY THEY HAVE GOT THAT PANDORA'S BOX OPEN SAYS YALE'S MR LAPALOMBARA THE DOOR IS REALLY SWINGING UP BUT HE ADDS THAT HE IS DEEPLY CONCERNED ABOUT THE SURVIVABILITY OF THE ITALIAN REPUBLIC 9302160138 930216 REVIEW & OUTLOOK EDITORIAL ASIDES PUBLICSECTOR PRESIDENCY WHERE THE MICROPROCESSOR AND PETRI DISH WERE THE TOOLS OF THE REAGAN YEARS IT APPEARS THE CLINTON PRESIDENCY'S ECONOMIC ICONS WILL BE THE DUMP TRUCK AND SHOVEL HE CALLS IT SPENDING ON INFRASTRUCTURE DIGGING DITCHES AND LAYING CONCRETE IS HONORABLE WORK AND HAS BEEN GOOD DEMOCRATIC POLITICS GOING BACK TO THE 1930S BUT IT APPEARS THAT VOTERS WHO THOUGHT THIS FORTYSOMETHING PRESIDENT WOULD PUSH US BRAIN POWER INTO THE FUTURE ARE GOING TO BE DISAPPOINTED AMERICA IS DOWNSHIFTING INTO LOWTECH 9302160137 930216 BRAJDAS CORP IN MERGER PACT SANTA CLARA CALIF BRAJDAS CORP SAID IT AGREED IN PRINCIPLE TO MERGE WITH RICHEYIMPACT ELECTRONICS INC OF GARDEN GROVE CALIF THE MERGER OF THE TWO ELECTRONICS DISTRIBUTORS IS EXPECTED TO CLOSE ON MARCH 1 THE TRANSACTION INVOLVES AN EXCHANGE OF STOCK AND DEBT AS WELL AS 4 MILLION IN CASH THE NEW COMPANY WILL USE THE BRAJDAS NAME BEFORE EVENTUALLY CHANGING IT TO RICHEY ELECTRONICS INC WILLIAM C CACCIATORE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RICHEYIMPACT WILL ASSUME THE SAME POSITIONS AT BRAJDAS DONALD ZIMMERMAN AND STEVEN A ZIMMERMAN WILL BE THE ONLY BRAJDAS DIRECTORS TO JOIN THE NEW BOARD 9302160136 930216 CORPORATE PERFORMANCE REVIEW FOURTH QUARTER 1992 COMPANIES' NET INCOME ROSE 62 STRONG GAINS EXPECTED TO CONTINUE A WALL STREET JOURNAL NEWS ROUNDUP CORPORATE PROFITS SOARED IN THE FOURTH QUARTER AND ARE LIKELY TO CONTINUE TO SHOW STRONG GAINS THIS YEAR FOR THE QUARTER 619 MAJOR CORPORATIONS REPORTED THAT NET INCOME ROSE 62 FROM A YEAR EARLIER ACCORDING TO A WALL STREET JOURNAL SURVEY THAT COMPARES WITH A 30 GAIN IN THE PREVIOUS QUARTER AND AN 18 RISE IN THE SECOND QUARTER AFTERTAX EARNINGS FROM CONTINUING OPERATIONS ROSE 57 COMPARED WITH A 27 GAIN FOR THE THIRD QUARTER STEPHEN S ROACH AN ECONOMIST AT MORGAN STANLEY & CO NOTES THAT THE REBOUND OWES A GREAT DEAL TO THE SHARP RISE IN BUSINESS PRODUCTIVITY THE CORPORATE COSTCUTTING THAT HAS BEEN GOING ON FOR MANY MONTHS HAS SLOWED ECONOMIC GROWTH BUT HAS BOOSTED PROFIT MARGINS AND PROFITS THE NET RESULT HE SAYS IS AN INCREASINGLY LEAN COST STRUCTURE M KATHRYN EICKHOFF A NEW YORKBASED ANALYST FIGURES THE IMPROVEMENTS IN PRODUCTIVITY MEAN THAT PROFITS WILL CONTINUE TO MOVE UPWARD MITIGATING ANY UPWARD CYCLICAL PRESSURE ON PRICES FOR SOME TIME TO COME SHE ADDS OVERALL THE ECONOMY APPEARS POISED FOR STRONG GROWTH LOW INFLATION RISING PROFITS AND FLATTOLOWER INTEREST RATES ALL IN ALL THE CURRENT ECONOMIC SITUATION IS NEARLY PERFECT SAYS LAWRENCE A KUDLOW CHIEF ECONOMIST OF BEAR STEARNS & CO INVESTMENT IS GROWING FASTER THAN CONSUMPTION INFLATION IS NONEXISTENT CAPITAL RETURNS ARE RISING SO ARE PROFITS AND PURCHASING POWER AMONG INDUSTRY GROUPS BANKS SECURITIES FIRMS AND OIL CONCERNS HAD STRONG PROFITS AUTO MAKERS AND COMPUTER COMPANIES HAD MIXED RESULTS IN THE AUTO SECTOR GENERAL MOTORS SURPRISED ANALYSTS WITH FAVORABLE RESULTS THE NO 1 AUTO MAKER WAS WEIGHED DOWN BY ONETIME CHARGES TOTALING 109 BILLION IN THE QUARTER AND POSTED A RECORDBREAKING LOSS OF 235 BILLION FOR THE YEAR HOWEVER GM EARNED 273 MILLION IN THE QUARTER BEFORE THE CHARGES GM WAS HEARTENED BY THE RESULTS BUT CONCEDED IT HAS A WAY TO GO IT IS STRUGGLING TO GET ITS PENSION FUNDS UNDER CONTROL AND HOPES THIS YEAR TO REVERSE ITS LOSSES IN NORTH AMERICAN AUTO OPERATIONS ANOTHER SURPRISE WAS CHRYSLER WHICH POSTED ITS BEST QUARTERLY EARNINGS PERFORMANCE IN FOUR YEARS AND ITS BEST FULLYEAR EARNINGS SINCE 1988 FORD MOTOR WHOSE LOSS INCLUDED WRITEOFFS TOTALING 524 MILLION POSTED AN OPERATING LOSS A SURGE IN US SALES FOR FORD FAILED TO OFFSET HIGH MARKETING COSTS FORD ALSO HAD A RECORD LOSS 74 BILLION FOR THE YEAR LARGELY DUE TO A ONETIME ACCOUNTING CHARGE INDUSTRY OBSERVERS FORECAST A TURNAROUND IN US AUTO SALES THIS YEAR AS CONSUMERS MAY NOW BE READY TO TRADE IN AGING CLUNKERS FOR NEW VEHICLES BUT THE SLUMPING EUROPEAN ECONOMY MAY CONTINUE TO UNDERMINE OVERALL PROFITS FOR FORD AND GM FORD POSTED A FOURTHQUARTER LOSS IN ITS OPERATIONS ABROAD GM POSTED A SMALLER PROFIT COMPARED WITH A YEAR EARLIER CHRYSLER HOWEVER HAS VERY LITTLE EXPOSURE TO THE EUROPEAN MARKET FOR COMPUTER COMPANIES THE QUARTER WAS A STORY OF BIG TURNAROUNDS THAT ARE TAKING HOLD AND OF ONE BIG TURNAROUND THAT HAS YET TO MATERIALIZE ON THE DOWNSIDE WERE THE MONUMENTAL WOES OF INTERNATIONAL BUSINESS MACHINES WHICH POSTED A RECORDBREAKING LOSS AND EVEN MORE TROUBLING ITS FIRST OPERATING LOSS WHAT MADE THE SHOWING SO DISMAL WAS THE FACT THAT THE FOURTH PERIOD IS USUALLY IBM'S BLOWOUT QUARTER THIS TIME THERE WASN'T A BRIGHT SPOT IN SIGHT IBM CONTINUED ITS SLIDE BY TAKING 72 BILLION IN PRETAX RESTRUCTURING CHARGES THE BELEAGUERED CHAIRMAN JOHN AKERS SAID HE'LL STEP DOWN AS CHIEF EXECUTIVE OFFICER LEAVING A BIG BLUE TURNAROUND TO HIS ASYET UNNAMED SUCCESSOR IBM'S TROUBLES OVERSHADOWED MOST OTHER NEWS FOR THE QUARTER BUT A FEW COMEBACK STORIES MANAGED TO EMERGE THROUGH THE GLOOM DIGITAL EQUIPMENT MADE SOME HEADWAY IN ITS INCIPIENT TURNAROUND REPORTING BETTERTHANEXPECTED RESULTS BUT THIS FALLEN GIANT HAS A LONG WAY TO GO IT'S STILL LOSING MONEY AND COULD STUMBLE UNISYS WAS FIRMLY IN THE BLACK AGAIN ROUNDING OUT A PROFITABLE YEAR AND PROVING THAT OLDLINE MAINFRAME COMPANIES CAN REJUVENATE THEMSELVES AS LONG AS THEY MAKE THE NECESSARY PAINFUL CUTS ON THE PC SIDE YET ANOTHER COMEBACK WAS IN EVIDENCE COMPAQ COMPUTER'S JUMP CAME ON RECORD SALES COMPLETING THE TURNAROUND THAT WAS SPARKED BY ITS AGGRESSIVE ENTRY INTO LOWCOST COMPUTERS BUT PRICE PRESSURES WEREN'T QUITE AS KIND TO APPLE COMPUTER WHICH ALSO HAD RECORD SALES BUT SAW MARGINS AND PROFIT DROP ANOTHER RECORD REVENUE PRODUCER WAS SUN MICROSYSTEMS BUT AGAIN THERE WAS A GLITCH BACKLOGS AND A CLUMSY PRODUCT TRANSITION CAUSED A DROP IN PROFIT LARGE BANKS POSTED BETTERTHANEXPECTED FOURTHQUARTER RESULTS HELPING TO SET A RECORD FOR THE YEAR BOUYED BY THE STRONG PERFORMANCE FOR THE QUARTER ANALYSTS ARE LOOKING FOR THE INDUSTRY TO SET ANOTHER RECORD IN 1993 BANKS CONTINUED TO BENEFIT FROM HIGHER INTEREST MARGINS THE SPREAD BETWEEN BORROWING RATES AND YIELDS ON LOANS AND POSTED LOWER PROVISIONS FOR LOAN LOSSES NONPERFORMING ASSETS DROPPED MORE THAN EXPECTED DECLINING TO THE LOWEST LEVELS IN TWO YEARS AS MORE BANKS NEARLY 70 REPORTED IMPROVED CREDIT QUALITY THE IMPROVEMENT WAS SEEN EVEN IN REGIONS WHERE ECONOMIC ACTIVITY REMAINED SLUGGISH SUCH AS CALIFORNIA AND NEW ENGLAND ALSO HELPING RESULTS FOR BANKS WAS THE ABSENCE OF UNUSUALLY LARGE CHARGES COMPARED WITH THE 1991 QUARTER WHEN SEVERAL LARGE BANKS INCLUDING CHEMICAL BANKING AND CITICORP POSTED BIG LOSSES BECAUSE OF HEFTY WRITEDOWNS OF BAD LOANS OR CHARGES FOR RESTRUCTURING OPERATIONS AGGRESSIVE COSTCUTTING SHARPLY BOOSTED PROFITS AT MANY BIG OIL COMPANIES CHEVRON ELIMINATED 6200 JOBS LAST YEAR REDUCED REFINING CAPACITY SOLD ASSETS AND REDUCED EXPENSES COMPANYWIDE MOBIL'S DOMESTIC SALARIED STAFF FELL BY 2300 WORKERS OR 11 AND THE COMPANY SOLD 900 MILLION OF ASSETS MEANTIME HIGHER US NATURAL GAS PRICES AIDED EXPLORATION AND PRODUCTION EARNINGS ALTHOUGH CRUDE OIL PRICES WERE WEAK MANY COMPANIES REPORTED IMPROVEMENTS IN GASOLINE MARKETING PROFITS PARTICULARLY ON THE WEST COAST AS SOME OF THE PRICE WARS AT THE PUMP EASED INTERNATIONAL OPERATIONS TOOK ON INCREASING IMPORTANCE IN THE PROFIT MIX EXXON FOR INSTANCE SAID THAT FOR 1992 THREEQUARTERS OF ITS EARNINGS CAME FROM OUTSIDE THE US THE QUARTER WAS LITTERED WITH ONETIME ITEMS CHEVRON HAD GAINS OF 546 MILLION PRIMARILY FROM ASSET SALES A YEAR EARLIER IT HAD 244 MILLION OF CHARGES MOBIL HAD RESTRUCTURING CHARGES OF 49 MILLION PROPERTY WRITEDOWNS OF 123 MILLION AND ENVIRONMENTAL CHARGES OF 60 MILLION PARTLY OFFSET BY GAINS OF 85 MILLION FOR ASSET SALES AND 78 MILLION FOR INVENTORY TAX AND OTHER ADJUSTMENTS TEXACO'S RESULTS INCLUDED CHARGES OF 143 MILLION FOR PROPERTY DAMAGE SEVERANCE COSTS AND ENVIRONMENTAL ISSUES A YEAR EARLIER IT HAD 202 MILLION IN GAINS FROM ASSET SALES AND TAX BENEFITS AND CHARGES OF 173 MILLION SECURITIES BROKERS HAD ROBUST PROFITS FOR THE EIGHTH STRAIGHT QUARTER EARNINGS WERE PROPPED UP BY STRONG TRADING ACTIVITY BY INDIVIDUAL INVESTORS IN OVERTHECOUNTER STOCKS AND A JUMP IN NEWSTOCK OFFERINGS THE SURGE LED TO RECORD 1992 PRETAX PROFIT OF NEARLY 7 BILLION FOR THE INDUSTRY BUT NOT ALL SECURITIES BROKERS ARE THRIVING AND ANALYSTS EXPECT FEW WALL STREET FIRMS TO MATCH THEIR 1992 PROFIT THIS YEAR SALOMON AND CHARLES SCHWAB SURPRISED ANALYSTS WITH FAT PROFITS FOR THE FOURTH QUARTER BOTH FIRMS HAD POOR THIRDQUARTER RESULTS SALOMON'S REVENUE FROM PRINCIPAL TRADING USING THE FIRM'S OWN MONEYMORE THAN DOUBLED TO 686 MILLION SCHWAB BENEFITED MOST FROM THE SURGE IN OTC TRADING ITS COMMISSIONS JUMPED 21 THE BIG DISAPPOINTMENT WAS SHEARSON LEHMAN BROTHERS THE NATION'S SECONDLARGEST BROKERAGE FIRM THE AMERICAN EXPRESS UNIT HAD A BIG FOURTHQUARTER LOSS REFLECTING 166 MILLION IN WRITEDOWNS FOR LITIGATION AND SOURED REAL ESTATE PROFITS FOR SECURITIES FIRMS IN THE CURRENT QUARTER SHOULD BE STRONG BUT PROBABLY WON'T MEET 1992 LEVELS DURING THE PAST YEAR NEARLY EVERY ENGINE OF THE SECURITIES BUSINESSFROM TRADING TO UNDERWRITINGHAS BEEN IN OVERDRIVE HERE ARE THE FOURTHQUARTER PROFITS FOR VARIOUS INDUSTRY GROUPS AND COMPARISONS WITH THE YEAREARLIER QUARTER WHEN INDIVIDUAL COMPANIES REPORT FOR THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS ARE USED IN ALL THE TABLES 000S ARE OMITTED VIRTUALLY ALL BIG INTEGRATED STEELMAKERS SUFFERED FURTHER LOSSES IN THE FOURTH QUARTER AS PRICES REMAINED DEPRESSED DESPITE AN IMPROVEMENT IN SHIPMENTS THE STEELMAKERS' FORTUNES SHOULD BEGIN TO IMPROVE IN THE CURRENT QUARTER AND BEYOND AS SHIPMENTS SURGE AND PRICE INCREASES BEGIN TO TAKE EFFECT IN PART BECAUSE OF VICTORIES FOR US PRODUCERS IN THEIR TRADE CASES AGAINST FOREIGN COMPANIES BETHLEHEM STEEL'S LOSS APPEARED LIGHTER BECAUSE OF A GAIN FOR THE REIMBURSEMENT OF A GOVERNMENT CONTRACT LTV'S LOSS INCLUDED A 140 MILLION CHARGE FOR A HEALTHCARE LIABILITY PARTLY OFFSET BY A CREDIT FROM THE SALE OF A FACILITY USX'S US STEEL HAD PRETAX CHARGES OF 231 MILLION FOR RESTRUCTURING LOAN LOSSES AND VARIOUS LIABILITIES ALUMINUM MAKERS BUMPED ALONG THE BOTTOM OF THEIR CYCLICAL TROUGH HURT BY CONTINUED LOW PRICES CAUSED BY OVERPRODUCTION AND THE CONSTANT FLOW OF CHEAP METAL FROM THE FORMER SOVIET UNION ALUMINUM CO OF AMERICA'S RESULTS INCLUDED A 129 MILLION CHARGE FOR ASSET DISPOSALS AND WORKFORCE REDUCTIONS REYNOLDS METALS' LOSS INCLUDED CHARGES OF 155 MILLION FOR ENVIRONMENTAL RESTRUCTURING COSTS BOTH COMPANIES WERE PROFITABLE BEFORE THE SPECIAL ITEMS AMONG FORESTPRODUCTS CONCERNS COMPANIES THAT OWN THEIR OWN TIMBERLAND SAW PROFITS SURGE AS LOGGING RESTRICTIONS ON PUBLIC LAND AND A REBOUND IN CONSTRUCTION ACTIVITY DROVE LUMBER PRICES TO RECORD LEVELS SENDING MARGINS SOARING WEYERHAEUSER'S TURNAROUND FOR EXAMPLE CAME ON ONLY A 10 INCREASE IN REVENUE THE COMPANY'S YEAREARLIER RESULTS WERE DEPRESSED BY A 283 MILLION RESTRUCTURING CHARGE EARNINGS AT POTLATCH MEANWHILE WERE DRAGGED DOWN BY THE POOR PERFORMANCE OF ITS PULP AND PAPER OPERATIONS AND A SHUTDOWN AT ONE MILL INDEED PAPER COMPANIES IN GENERAL FARED POORLY AS WEAK DEMAND AND A LARGE INCREASE IN CAPACITY OVER THE PAST FEW YEARS HELD DOWN PRICES MEAD PERFORMED SOMEWHAT BETTER THAN MOST PAPER COMPANIES LARGELY BECAUSE OF COST CONTROLS AND PRODUCTIVITY GAINS PROFITS FOR MANY COMMODITY CHEMICAL COMPANIES WERE SKEWED BY BIG ONETIME CHARGES AND GAINS ANALYSTS NOTE THAT WHILE SALES VOLUMES ON BULK CHEMICALS AND PLASTICS PICKED UP IN THE US SLUGGISH GROWTH ACROSS MUCH OF EUROPE AND IN JAPAN DEPRESSED RESULTS FOR COMPANIES WITH LARGE OVERSEAS OPERATIONS PRICES REMAINED WEAK REFLECTING THE GLOBAL OVERSUPPLY OF MANY CHEMICALS AND PLASTICS IN THE FACE OF WEAK DEMAND FROM MOST INDUSTRIALIZED COUNTRIES DOW CHEMICAL'S LOSS REFLECTED A 433 MILLION PRETAX RESTRUCTURING CHARGE WHILE DU PONT'S INCLUDED A 329 MILLION RESTRUCTURING CHARGE MONSANTO OFFSET A COSTCUTTING CHARGE OF 425 MILLION WITH A GAIN OF 554 MILLION FROM THE SALE OF ITS FISHER CONTROLS INTERNATIONAL DIVISION MOST SPECALTY CHEMICAL COMPANIES WHOSE PRODUCTS ARE AIMED AT LESS PRICESENSITIVE NICHE MARKETS THAN COMMODITY CHEMICAL COMPANIES POSTED GAINS COSTCUTTING DEBT REFINANCINGS AND CORPORATE RESTRUCTURINGS IMPROVED RESULTS FOR SOME OIL DRILLERS BUT WEREN'T ENOUGH TO BOOST PROFITS AT OILFIELD EQUIPMENT AND SERVICE CONCERNS OVERALL THE INDUSTRY REMAINED WEAK AS WORLDWIDE DRILLING ACTIVITY WAS SLUGGISH NATURALGAS PIPELINE PROFITS GENERALLY ROSE REFLECTING HIGHER VOLUMES OF GAS OWNED BY CUSTOMERS AS TRANSPORTERS PLAYED THE LOWRISK ROLE OF FEE COLLECTOR THE PIPELINES' MOVE AWAY FROM ACTING AS A MERCHANT BY BUYING AND SELLING GAS IS HELPING THEM STEADY THEIR CASH FLOW AND MORE FIRMLY FIX PROFIT MARGINS MANY PIPELINES REPORTED HIGHER VOLUMES AND STRONGER PRICES RESULTING FROM BUYERS' EFFORTS TO KEEP INVENTORIES FROM BECOMING DEPLETED DURING COLD SNAPS AND TO AVOID VOLATILE MARKET SWINGS COASTAL ONE OF THE FEW PIPELINES TO POST A LOSS HAD AN 825 MILLION CHARGE FROM REDUCING THE CARRYING VALUE ON ITS BOOKS OF CERTAIN ASSETS AND INVESTMENTS HIGHER EARNINGS FOR THE RAIL GROUP REFLECTED COSTCUTTING EFFORTS AND TRAFFIC GAINS IN INDUSTRIAL AND CONTAINERIZED FREIGHT BUT TRAFFIC GROWTH WAS HELD BACK BY ABNORMALLY MILD WEATHER THAT REDUCED COAL SHIPMENTS TO UTILITIES EARNINGS FELL 10 AT NORFOLK SOUTHERN EXCLUDING A YEAREARLIER 680 MILLION PRETAX CHARGE FOR WORKFORCE REDUCTIONS AND ASSET WRITEDOWNS CONRAIL'S EARNINGS ROSE 30 EXCLUDING A YEAREARLIER 719 MILLION PRETAX CHARGE WHILE CSX EARNINGS INCREASED 13 WITHOUT A PRETAX PRODUCTIVITY CHARGE OF 755 MILLION A YEAR EARLIER TRUCK COMPANIES HAD MIXED RESULTS AMID STAGNANT TRAFFIC IN SOME SEGMENTS OF THE BUSINESS CONSOLIDATED FREIGHTWAYS SAID EARNINGS WOULD HAVE BEEN 59 MILLION EXCLUDING SPECIAL ACCOUNTING AND RESTRUCTURING CHARGES THE COMPANY'S AIR FREIGHT UNIT HAD ITS FIRST PROFITABLE QUARTER SINCE ITS PURCHASE IN APRIL 1989 THE OUTLOOK FOR AIRFREIGHT COURIERS IMPROVED EVEN THOUGH CUSTOMERS CONTINUED TO OPT FOR NEXTAFTERNOON OR SECONDDAY DELIVERY THERE WAS A PICKUP AT YEAR END IN THE HIGHERMARGIN OVERNIGHT SHIPMENTS THE COMPANIES BENEFITED FROM IMPROVED COSTCUTTING AND SAW YIELDS START TO DECLINE AT A SLOWER RATE TRUCK MAKERS AND THEIR SUPPLIERS GAINED FROM A REBOUND THAT HAS BEEN CONTINUING SINCE LAST SPRING IN THE HEAVYTRUCK SECTOR THE TREND STRENGTHENED EARNINGS AT PACCAR AND EATON AND HELPED NARROW NAVISTAR'S LOSS TRINITY'S PROFIT INCREASE WAS FUELED IN PART BY GROWING RAILCAR SALES AND ORDERS WHILE THE MARKET FOR CONSTRUCTION MACHINERY DISPLAYED MODERATE SIGNS OF IMPROVEMENT IN THE US DURING THE QUARTER THE SECTOR IS STILL SOFT AND GROWTH FOR 1993 ISN'T EXPECTED TO PROVE PARTICULARLY HEARTY THE DEPRESSED EUROPEAN AND JAPANESE MARKETS HURT THE LATEST QUARTER CATERPILLAR'S PROFIT INCLUDED A GAIN FROM THE SALE OF LIFTTRUCK ASSETS THE YEAREARLIER PERIOD WAS MARRED BY 241 MILLION IN CHARGES LINKED TO PLANT CLOSURES AND CONSOLIDATION FARM EQUIPMENT SALES ARE STILL SOFT PINCHING RESULTS FOR DEERE THE COMPANY'S YEAREARLIER QUARTER INCLUDED A 120 MILLION RESTRUCTURING CHARGE MANY HOME BUILDERS HELPED BY RESURGING DEMAND IN MOST PARTS OF THE COUNTRY POSTED STRONG RESULTS DEMAND WAS GENERATED BY MORTGAGE INTEREST RATES THAT HAVE SUNK TO A 20YEAR LOW AS WELL AS BY A JUMP IN CONSUMER CONFIDENCE BIG PUBLICLY HELD BUILDERS CONTINUED TO BENEFIT FROM MARKETSHARE GAINS OVER LESSCAPITALIZED COMPETITORS CENTEX POSTED A STRONG GAIN ITS CENTEX REAL ESTATE HOME BUILDING UNIT REGISTERED A 40 SURGE IN 1992 SALES THE COMPANY SAID SALES ARE BENEFITING FROM A BROADBASED RECOVERY IN KEY MARKETS SUCH AS ARIZONA COLORADO AND TEXAS BUT STANDARD PACIFIC SAW ITS PROFIT DECLINE AS CALIFORNIA REMAINED MIRED IN RECESSION FOR THE RETAIL INDUSTRY ANALYSTS EXPECT EARNINGS OVERALL TO BE UP STRONGLY OVER YEAREARLIER LEVELS MANY RETAILERS HAD THEIR BEST CHRISTMAS SALES IN YEARS AND THE CONSUMERSPENDING MOMENTUM CARRIED OVER TO JANUARY ALSO WITH SLIMMER INVENTORIES RETAILERS DIDN'T HAVE TO MARK DOWN MERCHANDISE TO ATTRACT SALES WHICH HELPED BOOST PROFIT MARGINS BECAUSE RETAILERS' FISCAL YEAR ENDS A MONTH LATER THAN THE CALENDAR YEAR MOST COMPANIES WON'T REPORT THEIR FOURTHQUARTER RESULTS UNTIL LATE THIS MONTH OR EARLY MARCH SEARS WHICH REPORTS ON A CALENDARYEAR BASIS POSTED A LOSS FOR THE QUARTER AFTER SPECIAL CHARGES TOTALING 242 BILLION WITHOUT THE CHARGES WHICH REFLECTED RESTRUCTURING COSTS INSURANCERELATED HURRICANE LOSSES AND THE ADOPTION OF NEW ACCOUNTING STANDARDS FOR EMPLOYEE RETIREMENT COSTS OPERATING EARNINGS ROSE 19 BUT THE MERCHANDISE GROUP'S OPERATING PROFIT FELL 23 TO 222 MILLION RETAILING'S BLACK SHEEP THIS QUARTER GAP INC WHICH IS EXPECTED TO POST AN EARNINGS DECLINE OF BETWEEN 22 AND 34 AFTER TOUGH YEAREARLIER COMPARISONS GAP ALSO HAD TO WIDELY DISCOUNT ITS MERCHANDISE TO MOVE IT OUT PINCHING MARGINS HOTEL AND CASINO COMPANIES ARE FEELING THE LINGERING EFFECTS OF THE ECONOMIC DOWNTURN AS TRAVEL AND TOURISM TEND TO LAG BEHIND THE BROADER ECONOMIC TREND HOWEVER SOME MANAGED TO SHOW YEAROVERYEAR OPERATING GAINS PROFITS FOR MARRIOTT AND HILTON HOTELS REFLECTED THE OVERALL WEAKNESS IN FULLSERVICE HOTELS ALTHOUGH MARRIOTT BENEFITED FROM IMPROVEMENTS IN OTHER PRODUCT LINES AND HILTON'S CASINOS CONTINUED TO SHOW SOLID RESULTS CIRCUS CIRCUS ENTERPRISES POSTED BROAD GAINS WHILE CAESARS WORLD EXPERIENCED A SHARP DECLINE IN PROFIT BECAUSE OF BAD LUCK AT ITS GAMBLING TABLES RESTAURANTS SHOWED EARNINGS IMPROVEMENT HELPED BY VALUEPRICED MENUS AND THE OPENING OF MORE UNITS AT TCBY ENTERPRISES SAMESTORE SALES CLIMBED 5 FOR MCDONALD'S SYSTEMWIDE SALES THOSE OF FRANCHISEE AND AFFILIATE OUTLETS IN ADDITION TO THE COMPANY'S OWN RESTAURANTS ROSE 10 MCDONALD'S DOMESTIC PROFIT MARGINS BENEFITED FROM COSTCUTTING MEASURES IMPLEMENTED EARLIER AND ADVERTISING COSTS DECLINED AS A PROPORTION OF SALES WHILE MANY OF MCDONALD'S OVERSEAS MARKETS SHOWED STRONG SALES GAINS OPERATING RESULTS REMAINED WEAK IN JAPAN AND TROUBLED ECONOMIES DEPRESSED PROFITS IN CANADA AND ENGLAND MAJOR TOY MAKERS' PROFITS GREW STRONGLY REFLECTING CONTINUED SALES GROWTH IN TRADITIONAL TOYS AS WELL AS CONTRIBUTIONS FROM RECENTLY INTRODUCED MECHANICAL DOLLS TOY GUNS AND ACTION FIGURES THE GAINS CAME DESPITE A RESURGENCE IN VIDEO GAME SALES AND CONTINUED CONSOLIDATION AMONG TOY RETAILERS ANALYSTS SAY MANY TOY MAKERS HAD HIGHER SALES IN THE FOURTH QUARTER THAN IN THE THIRD AN UNUSUAL PATTERN FOR THE INDUSTRY WHICH TYPICALLY SHIPS PRODUCTS IN THE THIRD QUARTER FOR THE HOLIDAY SEASON ANALYSTS SAY RETAILERS THIS YEAR WERE HESITANT TO ORDER EARLY AS CONSUMERS WAITED LONGER TO BEGIN SHOPPING FOR THE HOLIDAYS NEWSPAPER COMPANIES HAD VARYING DEGREES OF SUCCESS IN LURING BACK CRUCIAL RETAIL ADVERTISERS RESULTS FOR SEVERAL PUBLISHERS WERE AFFECTED BY ONETIME CREDITS AND CHARGES LARGELY RELATED TO ACCOUNTINGRULE CHANGES AT GANNETT WITH ITS WIDELY DISPERSED NEWSPAPERS CLASSIFIED ADVERTISING WAS STRONGER AS DEMAND FOR HELPWANTED NOTICES INCREASED GANNETT'S BROADCASTING EARNINGS IMPROVED AS WELL BUT RESULTS FOR TIMES MIRROR SUFFERING UNDER DIFFICULT CONDITIONS IN THE NEW YORK AND LOS ANGELES NEWSPAPER MARKETS WERE AFFECTED BY LARGE ONETIME CHARGES FOR WORKFORCE REDUCTION PROGRAMS TRIBUNE'S RESULTS WERE SHARPLY HIGHER DUE TO A ONETIME CREDIT FROM BASEBALL EXPANSION FEES AIRLINE PROFITS STAYED IN THE RED FOR THE THIRD CONSECUTIVE QUARTER AS THE INDUSTRY CONTINUED TO FIND IT HARD TO SHAKE OFF THE LINGERING EFFECTS OF BRUISING FARE WARS AND WEAK DEMAND THE LOSS WAS MOST STRIKING AT AMR PARENT OF AMERICAN AIRLINES WHOSE FOURTHQUARTER FIGURES BROUGHT A RECORD LOSS OF 935 MILLION FOR THE YEAR THE FIGURE INCLUDED SEVERAL ONETIME CHARGES AND ACCOUNTING CHANGES UAL AND DELTA AIR LINES POSTED LOSSES ALBEIT NARROWER ONES THAN FOR THE YEAREARLIER QUARTER ALL THREE BLAMED THEIR RESULTS ON DISCOUNT FARES THOUGH DELTA IS STILL LOSING MONEY ON ITS EUROPEAN ROUTES ACQUIRED FROM PAN AM IN 1991 THE ADOPTION OF NEW ACCOUNTING STANDARDS BY NEARLY ALL CARRIERS MADE THE QUARTER'S LOSSES APPEAR EVEN WORSE THE EXCEPTION TO THE INDUSTRY TREND ONCE AGAIN WAS SOUTHWEST AIRLINES NET INCOME AT THE NOFRILLS CARRIER SOARED FOR THE QUARTER AND YEAR AS SOUTHWEST'S LOWFARE SERVICE FACED MORE DEMAND NOT LESS SEVERAL FOOD COMPANIES REPORTED DOUBLEDIGIT EARNINGS GAINS ON SURGING SALES TYSON'S SALES CLIMBED 13 MCCORMICK'S ROSE 9 SARA LEE'S RECORD PROFIT REFLECTED IMPROVED MARGINS ON PACKAGED FOODS WHILE CAMPBELL SOUP ATTRIBUTED ITS RECORD EARNINGS IN PART TO NEW PRODUCT INTRODUCTIONS BORDEN'S PROFIT DROP WAS BLAMED ON A LOSS IN ITS DAIRY UNIT AND DISAPPOINTING PASTA AND SAUCE SALES DOLE'S LOSS INCLUDED A RESTRUCTURING CHARGE FOOD RETAILERS CONTINUED TO STRUGGLE WITH DECLINING FOOD PRICES SUPERVALU'S PROFIT DROPPED BECAUSE OF A 513 MILLION ONETIME GAIN IN THE YEAREARLIER PERIOD ALBERTSON'S CITED SPECIAL PROMOTIONS STRONGER NONFOOD SALES AND COST CONTROLS FOR ITS PROFIT INCREASE AMERICAN STORES BENEFITED FROM THE STRENGTH OF ITS DRUG STORE BUSINESS BEVERAGE COMPANIES POSTED MIXED RESULTS FINISHING OFF A WEAK YEAR FOR VOLUME GROWTH OF BEER AND SOFT DRINKS COKE'S EARNINGS BENEFITED FROM A SALES BOOST LATE IN THE QUARTER AS THE COMPANY LAUNCHED A HOLIDAY PROMOTION WORLDWIDE PEPSI'S EARNINGS DECLINE REFLECTED 1285 MILLION IN RESTRUCTURING CHARGES THE YEAREARLIER PERIOD INCLUDED RESTRUCTURING CHARGES OF 574 MILLION PEPSI'S FOOD AND BEVERAGE BUSINESSES HAD SOLID OPERATING PROFIT CONTRARY TO INVESTOR PERCEPTIONS THAT THE PHARMACEUTICAL INDUSTRY IS IN A TAILSPIN MOST MAJOR DRUG COMPANIES POSTED HEALTHY OPERATING PROFIT MANY COMPANIES ADOPTED NEW ACCOUNTING STANDARDS WHICH HAD A DAMPING EFFECT ON RESULTS MERCK PFIZER AND SCHERINGPLOUGH CONTINUED TO LEAD THE GROUP'S OPERATING PERFORMANCE WITH DOUBLEDIGIT GROWTH IN UNIT SALES VOLUME SAYS JOYCE ALBERS AN ANALYST AT FIRST BOSTON SHE SAYS THE INCREASE IN SALES VOLUME WAS DRIVEN BY NEW PRODUCTS OR NEW USES FOR OLDER PRODUCTS EARNINGS AT UPJOHN AND ELI LILLY WERE HURT BY PRODUCT PROBLEMS SALES OF UPJOHN'S HALCION SLEEPING DRUG CONTINUED TO DROP SHARPLY AND ELI LILLY TOOK A CHARGE AGAINST ITS INVESTMENT IN CENTOCOR WHICH LAST MONTH SUSPENDED TESTING OF CENTOXIN A TREATMENT AGAINST BACTERIAL SHOCK PFIZER'S YEAREARLIER RESULTS INCLUDED A 195 MILLION CHARGE FOR POTENTIAL CLAIMS RESULTING FROM HEARTVALVE FRACTURES WARNERLAMBERT HAD A YEAREARLIER RESTRUCTURING CHARGE OF 418 MILLION IN OFFICE EQUIPMENT GIANT XEROX SAW HEALTHY GAINS IN ITS CORE BUSINESS BUT WAS DERAILED BY A 788 MILLION CHARGE FOR ITS FINANCIALSERVICES BUSINESS WHICH IT HAS SAID IT WILL SELL AND AN ACCOUNTINGRELATED CHARGE OF 122 MILLION SEMICONDUCTOR COMPANIES SAW HEALTHY PROFIT GROWTH ON ROBUST SALES INTEL CONTINUED TO DOMINATE THE MARKET FOR MICROPROCESSORS USED AS THE BRAINS OF PERSONAL COMPUTERS WITH SALES OF ITS FLAGSHIP 486 CHIP HELPING TO BOOST REVENUE 54 INTEL IS EXPECTED TO CONTINUE TO SET THE PACE OF INNOVATION WHEN IT BEGINS SHIPPING THIS SPRING ITS LATEST GENERATION CHIP CALLED THE PENTIUM NATIONAL SEMICONDUCTOR'S GROWTH CAME PRIMARILY FROM COST CUTS AND AN INCREASE IN SALES OF ITS LOWERMARGIN COMMODITYTYPE PRODUCTS AMONG SOFTWARE COMPANIES MICROSOFT BENEFITED FROM ITS PREEMINENT POSITION IN WINDOWS APPLICATIONS NOVELL ORACLE AND TO A LESSER DEGREE LOTUS DEVELOPMENT GAINED FROM STRENGTHS IN NETWORKING COMPUTER ASSOCIATES AND AUTOMATIC DATA WERE HELPED BY CONSOLIDATION AMONG SUPPLIERS OF MAINFRAME SOFTWARE COMPANIES WITH WEAKER POSITIONS IN THE WINDOWS MARKET SUCH AS BORLAND AUTODESK AND ADOBE SYSTEMS FACE TOUGHER TIMES IN THE COMMUNICATIONS SECTOR AT&T'S PROFIT IMPROVEMENT CAME MAINLY FROM PRODUCT SALES PARTICULARLY IN NETWORK SYSTEMS EQUIPMENT INTERNATIONAL SALES OF SUCH EQUIPMENT ROSE 40 ALSO PROFIT AND REVENUE JUMPED FOR ITS POPULAR UNIVERSAL CREDIT CARD THOSE STRENGTHS OFFSET ITS WEAKNESS VIRTUALLY FLAT REVENUE FOR LONGDISTANCE SERVICE MOTOROLA DID SOMEWHAT BETTER THAN EXPECTED SHOWING ITS STRENGTH IN MICROCHIP AND CELLULAR COMMUNICATIONS TECHNOLOGY MOTOROLA'S BIG CHALLENGE THIS YEAR IS DEALING WITH THE FALLOUT FROM RECENT TALK THAT THERE MAY BE A LINK BETWEEN HEAVY EXPOSURE TO RADIO WAVES FROM CELLULAR PHONES AND BRAIN CANCER AEROSPACE INDUSTRY RESULTS WERE MIXED REFLECTING THE IMPACT OF A WEAK COMMERCIALAVIATION MARKET ON AIRPLANE MAKERS AND GENERALLY MODERATE GAINS REPORTED BY SOME PUREPLAY DEFENSE CONTRACTORS BOEING'S DROP REFLECTED A SHRINKING DEFENSE TRADE AND AIRLINEINDUSTRY WEAKNESS MCDONNELL DOUGLAS'S RESULTS WERE SKEWED BY A ONETIME GAIN OF 676 MILLION FOR ACCOUNTING CHANGES RELATED TO RETIREE HEALTH BENEFITS THE GAIN MASKED A SHARP EARNINGS DECLINE TIED TO SHRINKAGE IN MCDONNELL DOUGLAS'S COMMERCIALJET PROGRAMS AS WELL AS PROBLEMS WITH THE C17 MILITARY TRANSPORT AMONG AEROSPACE COMPANIES REPORTING GAINS DEFENSEELECTRONICS CONCERN LORAL STOOD OUT LORAL'S GROWTHTHROUGHACQUISITION STRATEGY IS SETTING THE PACE FOR COMPANIES TRYING TO COPE WITH A SHRINKING INDUSTRY BIG 1992 ACQUISITIONS BY MARTIN MARIETTA AND LOCKHEED SHOULD RESULT IN HEFTY FIRSTQUARTER GAINS AT BOTH COMPANIES EXCLUDING ANY CHARGES RELATED TO RETIREE BENEFITS MANY SAVINGS AND LOANS CONTINUED TO SUFFER FROM THE DECLINE IN REAL ESTATE VALUES WHILE CONSERVATIVE THRIFTS REMAINED SOLIDLY PROFITABLE LOANLOSS CHARGES AT CALIFORNIA'S TWO LARGEST S&LS HF AHMANSON AND GREAT WESTERN FINANCIAL WIDENED IN THE QUARTER BOTH ARE BURDENED BY LARGE PILES OF NONPERFORMING ASSETS THOUGH AHMANSON'S FELL 12 THE FIRST DROP IN SEVEN QUARTERS A TURNAROUND IN THE NEAR TERM HINGES ON IMPROVEMENT IN THE STATE'S BATTERED ECONOMY THAT MAY NOT HELP GLENFED WHOSE CREDIT PROBLEMS HAVE GOTTEN SO BAD THAT A BANKRUPTCYLAW FILING OR REGULATORY SEIZURE IS POSSIBLE IN THE NEAR FUTURE BY CONTRAST GOLDEN WEST FINANCIAL WHICH AVOIDED COMMERCIAL REAL ESTATE AND CLUNG TO TIGHT UNDERWRITING POSTED ANOTHER GAIN AS DID WASHINGTON FEDERAL STRIPPED OF ONETIME ITEMS LOCAL PHONE COMPANIES' RESULTS WERE ANEMIC BUT LONGDISTANCE CARRIERS SAW HEALTHY GROWTH WHILE THE NUMBER OF CUSTOMER TELEPHONE LINES GENERALLY GREW AROUND 2 TO 3 GROWTH IN THE MINUTES OF USAGE SLOWED IF THE FOURTH QUARTER MARKED THE BEGINNING OF THE ECONOMIC RECOVERY WE DIDN'T SEE IT IN THE PHONE INDUSTRY SAYS DANIEL REINGOLD AN ANALYST WITH MORGAN STANLEY & CO THE REASON HE EXPLAINS IS CONTINUED COSTCUTTING IN THE SERVICE SECTOR A SEGMENT THAT RELIES HEAVILY ON PHONE SERVICE GTE'S PROFIT INCLUDED A 52 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT FOR THE YEAREARLIER QUARTER AMERITECH HAD A RESTRUCTURING CHARGE OF 141 MILLION NYNEX TOOK 550 MILLION IN CHARGES FOR WORK FORCEREDUCTION PROGRAMS AND BUSINESS RESTRUCTURING PACIFIC TELESIS GROUP HAD CHARGES OF 122 MILLION ASSOCIATED WITH STAFFREDUCTION PROGRAMS AND U S WEST TOOK A 590 MILLION RESTRUCTURING CHARGE GENERAL ELECTRIC'S EARNINGS ROSE TO A RECORD BUT FELL SHORT OF ANALYSTS' EXPECTATIONS NEVERTHELESS THE COMPANY CALLED THE PERFORMANCE REWARDING CONSIDERING THE ECONOMIC CONDITIONS IN THE US AND THE REST OF THE WORLD THE GE FINANCIAL SERVICES UNIT CONTRIBUTED THE LARGEST PORTION TO GE'S BOTTOM LINE IN 1992 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 M KATHRYN EICKHOFF IS PRESIDENT OF EICKHOFF ECONOMICS INC A NEW YORKBASED ECONOMIC CONSULTING FIRM TUESDAY'S REPORT ON CORPORATE PERFORMANCE INCORRECTLY IDENTIFIED HER AS AN ANALYST 9302160135 930216 FOLEY SAYS HOUSE WILL VOTE TO SHIELD JOBS OF STRIKERS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL BAL HARBOUR FLA LEGISLATION BARRING COMPANIES FROM PERMANANTLY REPLACING STRIKING WORKERS WILL PASS THE HOUSE WITHIN THE NEXT 60 DAYS HOUSE SPEAKER THOMAS FOLEY SAID THE MEASURE WHICH ORGANIZED LABOR SEES AS CRITICAL TO ITS EFFORTS TO REGAIN LEVERAGE AT US COMPANIES WOULD THEN MOVE TO THE SENATE WHERE PASSAGE IS MUCH LESS CERTAIN LAST YEAR SENATE BACKERS WERE UNABLE TO MUSTER THE 60 VOTES NEEDED TO CONDUCT A FLOOR VOTE ON THE BILL UNIONS HAVE BEEN TRYING FOR YEARS TO GET LEGISLATION THAT WOULD STOP COMPANIES FROM HIRING PERMANENT REPLACEMENT WORKERS WHEN UNIONIZED EMPLOYEES STRUCK THEY SEE SUCH AN EFFORT AS CURING SOME OF THE PERCEIVED ANTIUNION SENTIMENT OF THE REAGAN AND BUSH ADMINISTRATIONS SEPARATELY THE AFLCIO EXECUTIVE COUNCIL AT ITS ANNUAL MEETING HERE VOTED TO URGE AN INCREASE IN THE MINIMUM WAGE TO 525 AN HOUR A 1 BOOST FROM THE CURRENT LEVEL THE RULING BODY OF THE LABOR UNION FEDERATION URGED TWO ANNUAL 50CENT INCREASES AND RECOMMENDED INDEXING THE WAGE TO 50 OF AVERAGE HOURLY EARNINGS IN ADDITION THE COUNCIL SAID THAT ALL HOURS WORKED OVER 40 A WEEK SHOULD BE PAID AT DOUBLETIME RATHER THAN THE CURRENT TIMEANDAHALF PREMIUM WHICH THE COUNCIL SAID IS NO LONGER AN EFFECTIVE DETERRENT TO EXTENDING THE WORK WEEK PRESIDENT CLINTON AND LABOR SECRETARY ROBERT REICH ALREADY HAVE ADVOCATED A HIGHER OR INDEXED MINIMUM WAGE HOUSE MAJORITY LEADER RICHARD GEPHARDT SEES THE BILL AS A STEP TOWARD A WORKERMANAGEMENT PARTNERSHIP WE NEED TO ADVANCE THE RELATIONSHIP BETWEEN MANAGEMENT AND LABOR THE MISSOURI DEMOCRAT SAID IN AN INTERVIEW THIS BILL IS A NECESSARY FIRST STEP TO SEND THE RIGHT MESSAGE TO CORPORATE AMERICA AN ENERGIZED LABOR MOVEMENT PLANS TO URGE PRESIDENT CLINTON TO STEP TO THE FOREFRONT IN PUSHING THE STRIKERREPLACEMENT BILL THROUGH CONGRESS WE WOULD HOPE HE WOULD EXPEND SOME POLITICAL CAPITAL TO KEEP A PROMISE HE MADE DURING THE CAMPAIGN SAID GERALD MCENTEE PRESIDENT OF THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES SIMILARLY RON CAREY PRESIDENT OF THE TEAMSTERS UNION SAID WE THINK CLINTON OUGHT TO GET OUT THERE WHERE HE COULD CERTAINLY BE QUITE PERSUASIVE ON THIS INDEED OTHER LABOR OFFICIALS QUESTIONED WHETHER THE MEASURE COULD GET THROUGH THE SENATE WITHOUT HEAVY LOBBYING BY THE WHITE HOUSE MUCH OF THE DEBATE AMONG UNION LEADERS DURING THE PAST FEW DAYS HAS CENTERED ON HEALTH CARE THE EXECUTIVE COUNCIL WILL VOTE THIS WEEK ON WHETHER TO PROPOSE A PLAN TO CREATE A SYSTEM OF UNIVERSAL HEALTH CARE IT ISN'T CLEAR WHETHER LANE KIRKLAND THE AFLCIO'S PRESIDENT OR OTHERS WILL PRESS FOR A CONSUMPTION TAX TO PAY FOR HEALTH CARE 9302160134 930216 LETTERS TO THE EDITOR I DON'T ENJOY FIRING PEOPLE' YOUR JAN 11 PAGEONE ARTICLE JACK THE RIPPER A CEO FOR NEW ERA PROSPERS BY PRACTICING TOUGH ART OF FIRING ATTEMPTED TO LINK FIRST BANK SYSTEM'S TURNAROUND SUCCESS ALMOST EXCLUSIVELY WITH THE NUMBER OF EMPLOYEES WHO HAVE LOST THEIR JOBS IN THE PROCESS YOU DID A DISSERVICE TO YOUR READERS TURNING A TROUBLED COMPANY AROUND INVOLVES FAR MORE THAN CUTTING STAFF WHEN I BECAME CHIEF EXECUTIVE OFFICER OF FIRST BANK SYSTEM IN 1990 WE COMMITTED OURSELVES TO FOUR PRIORITIES CREDIT QUALITY CAPITAL STRENGTH A FOCUS ON OUR CORE BUSINESS AND COST CONTAINMENT OF WHICH JOB REDUCTIONS WERE ONE PART SIMPLY REDUCING JOBS DOESN'T TURN A COMPANY AROUND BUSINESS ANNALS ARE STREWN WITH THE WRECKAGE OF COMPANIES THAT CUT THEIR WAY INTO RUIN IF WE HAD NOT BEEN SUCCESSFUL IN MAKING THE TOUGH CHOICES TO TURN AROUND THIS COMPANY THERE EASILY COULD HAVE BEEN 10000 PEOPLE OUT OF WORK INSTEAD OF 2000 WHAT BOTHERED ME MOST ABOUT YOUR ARTICLE HOWEVER WAS THE IMPRESSION THAT I SOMEHOW ENJOY CUTTING JOBS SIMPLY STATED I DON'T I NEVER HAVE I NEVER WILL A CEO CAN BE BOTH TOUGH AND FAIR WE HAVE GONE TO GREAT LENGTHS TO TREAT PEOPLE WHO HAVE LOST THEIR JOBS WITH BOTH RESPECT AND SENSITIVITY THAT INCLUDES COMMUNICATING THE DECISION QUICKLY PROVIDING A VERY FAIR SEVERANCE PACKAGE AND SUPPORTING THEM WITH OUTPLACEMENT SERVICES HAD WE GONE ABOUT THESE CUTS AS YOUR ARTICLE IMPLIED THE STAFF THAT REMAINED WOULD HAVE BEEN DECIMATED AND DEMORALIZED HARDLY A FOUNDATION UPON WHICH TO BUILD A RENEWED ORGANIZATION FAR FROM IT OUR PEOPLE ARE THE VERY FIBER THAT MAKES FIRST BANK SYSTEM THE SUCCESSFUL BANKING ORGANIZATION IT IS TODAY IT'S SAD THAT YOUR ARTICLE MISSED ALL THAT NOT JUST FOR YOUR READERS' SAKE BUT FOR THE PEOPLE OF FIRST BANK SYSTEM WHO TAKE GREAT PRIDE IN THE SUCCESS OF THEIR COMPANY MAYBE THAT DOESN'T SELL PAPERS BUT IT SURE MAKES FOR AN ORGANIZATION THAT NOW HAS HOPE AND PROMISE IN REGARD TO YOUR ARTICLE ON JOHN JACK THE RIPPER GRUNDHOFER AND HIS UNIQUE ABILITY TO CAVALIERLY FIRE EMPLOYEES WHOLESALE AND WITH LITTLE REGARD TO MERIT ALTHOUGH MY ANGER AT SUCH ARROGANCE IS UNDIMINISHED I HAVE TO ADMIT THAT THE ONLY REASON THE MARKET HAS ANY PLACE FOR SUCH A BUTCHER IS THAT HIS PREDECESSOR AT FIRST BANK SYSTEM ALLOWED THE EMPLOYEE RANKS TO BECOME EXTRAORDINARILY BLOATED THE FACT IS THAT THE JOBS INTO WHICH MANY OF THESE PEOPLE WERE HIRED NEVER REALLY EXISTED BECAUSE THEIR EMPLOYER COULD NOT REALLY AFFORD THE EXTRA JOBS AN UNFORTUNATE FACT OF LIFE IN THE '90S SEEMS TO BE THAT WELLQUALIFIED EMPLOYEES ROUTINELY HAVE TO MONITOR THEIR COMPANY'S FINANCIAL CONDITION VS THEIR COMPETITORS' TO DETERMINE WHETHER ANY LAYOFFS ARE COMING AND THEN JUMP SHIP BEFORE THE AX FALLS HAD THE EMPLOYEES OF FIRST BANK SYSTEM PERCEIVED THE NEED FOR SUCH FORESIGHT MR GRUNDHOFER WOULD HAVE BEEN LEFT EXCLUSIVELY WITH MEDIOCRE EMPLOYEES TO MATCH HIS MEDIOCRE MANAGEMENT ABILITY SEVERAL SUGGESTIONS I WOULD MAKE TO THE FORMER AND PROSPECTIVE EMPLOYEES OF FIRST BANK TO THE DIRECTORS OF FIRST BANK TO THE CUSTOMERS OF FIRST BANK AND TO THE CITIZENS OF MINNESOTA TO PROSPECTIVE EMPLOYEES OF FIRST BANK DON'T ACCEPT A JOB UNLESS YOU ARE CHAIRMAN AND CEO BECAUSE ACCORDING TO JACK YOU'VE GOT TO BE ABLE TO FIRE PEOPLE TO THE FORMER EMPLOYEES OF FIRST BANK I WOULD SUGGEST THAT YOU CELEBRATE YOUR FREEDOM FIND A NEW JOB AT A BANK THAT IS INTERESTED IN ACQUIRING FIRST BANK TO ANY DIRECTOR OF FIRST BANK I WOULD SUGGEST THAT YOU PERSONALLY BANK ELSEWHERE CLOSE YOUR ANNUAL MEETING TO ALL BUT SECURITIES ANALYSTS AND CONTINUE TO ENJOY THE PERFORMANCE OF YOUR BANK TO CURRENT CUSTOMERS OF FIRST BANK BEWARE THAT YOU MAY BE NEXT IN LINE FOR PURGE JACK AND THE FIRST BANK NEVER MENTIONED YOU IN THE ARTICLE BUT SOMEHOW I WAS NOT SURPRISED BY THIS OVERSIGHT TO THE CITY OF MINNEAPOLIS AND THE STATE OF MINNESOTA PROVIDE A FREE RESUME UPDATE FOR JACK AND FREE OVERNIGHT DELIVERY TO ANY BANK WITH MORE THAN ONE EMPLOYEE LOCATED OUTSIDE MINNESOTA MR GRUNDHOFER IS QUOTED AS SAYING SHAREHOLDERS ARE LOOKING FOR SOMEONE TO PROTECT THEIR LIVELIHOOD WHICH SHAREHOLDERS DOES MR GRUNDHOFER REPRESENT CERTAINLY NOT THE SOCALLED AFFINITY SHAREHOLDER COMMUNITY OF SHAREHOLDEREMPLOYEES SHAREHOLDERRETIREES AND SHAREHOLDERNEIGHBORS AND IN THE CASE OF A MANUFACTURING OR RETAILING BUSINESS SHAREHOLDERVENDORS AND SHAREHOLDERCUSTOMERS IT'S A NEW BALLGAME FOR THE GRUNDHOFERS AND ICAHNS AND LORENZOS AND KAZARIANS OF AMERICAN BUSINESS INNOVATION AND MARKETING HAVE TO REPLACE DOWNSIZING AND RESTRUCTURING DOWNSIZING IS NOT A SOLUTION IT IS A COVERUP OF EARLIER MISMANAGEMENT IT IS RESORTED TO BY INCUMBENT EXECUTIVES TO COVER UP THEIR OWN MISTAKES AND BY NEW EXECUTIVES TO COVER UP THE MISTAKES OF THE DIRECTORS WHO HIRED THEM DOWNSIZING IN THE NEW POST1992 ERA IS AN INVITATION TO EXPENSIVE AND PROTRACTED LITIGATION 9302160133 930216 BUSINESS BRIEFS CENTURY TELEPHONE ENTERPRISES INC SIGNED A LETTER OF INTENT TO AQUIRE CONTROLLING INTERESTS IN TWO MISSISSIPPI GULF COAST CELLULAR SYSTEMS FOR 36 MILLION QUAKER STATE CORP WILL CLOSE ITS HELEN MINING CO COAL MINE IN HOMER CITY PA SUN CHEMICAL CORP A UNIT OF JAPAN'S DAINIPPON INK & CHEMICALS INC ACQUIRED USHERWALKER PLC FOR ABOUT 14 MILLION 20 MILLION PARKEDAVIS A SUBSIDIARY OF WARNERLAMBERT CO WILL BE THE EXCLUSIVE BRITISH DISTRIBUTOR OF CORTECS INTERNATIONAL LTD'S DICLOMAX ANTIINFLAMMATORY DRUG ASARCO INC WILL CLOSE ITS TROY COPPER AND SILVER MINE NEARBY LIBBY MONT IN MIDAPRIL REFLECTING LOW METALS PRICES AND FALLING PRODUCTION HILLHAVEN CORP PLANS TO BUY 17 NURSING CENTERS WITH A TOTAL OF ALMOST 2000 BEDS IN 12 STATES FOR 527 MILLION SPHINX PHARMACEUTICALS CORP SIGNED A LETTER OF INTENT TO BUY GENESIS PHARMACEUTICALS FOR 900000 SPHINX SHARES 9302160130 930216 HARSH MEDICINE ATTACK ON DRUG PRICES OPENS CLINTON'S FIGHT FOR HEALTHCARE PLAN PRESIDENT SHOCKED' BY COSTS AND MAY IMPOSE LIMITS INDUSTRY CITES EXPENSES NEXT TARGET INSURANCE FIRMS BY JEFFREY H BIRNBAUM AND MICHAEL WALDHOLZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN HIS DRIVE TO OVERHAUL THE HEALTHCARE SYSTEM PRESIDENT CLINTON HAS DECIDED TO MAKE SPECIAL INTERESTS THE ENEMY UNFORTUNATELY FOR THE US PHARMACEUTICAL INDUSTRY IT HAS BEEN CHOSEN SPECIAL INTEREST NO 1 MR CLINTON'S BLAST AT SHOCKING DRUG PRICES LAST WEEK IS LIKELY TO PROVE ONLY THE FIRST IN A SERIES OF ATTACKS ON THE DRUG COMPANIES IN THE COMING MONTHS THE PRESIDENT PLANS TO PRESSURE THE INDUSTRY TO SEVERELY LIMIT INCREASES IN PRESCRIPTIONDRUG PRICES WHICH THE GOVERNMENT SAYS ROSE AT SIX TIMES THE GENERAL RATE OF INFLATION BETWEEN 1980 AND 1992 AND HE MAY EVEN PROPOSE GOVERNMENT CONTROLS HE ALSO IS EXPECTED TO PROPOSE SHARPLY CUTTING BACK ONE OF THE PHARMACEUTICAL COMPANIES' RICHEST PRIZES THE FEDERAL SUBSIDY THAT ALLOWS THEM TO MANUFACTURE THEIR PRODUCTS IN PUERTO RICO LARGELY TAXFREE THE RESULT IS BIG TROUBLE FOR AN INDUSTRY THAT HAS BEEN A DARLING OF WALL STREET DURING THE 1980S THE DRUG INDUSTRY WAS LAUDED AS A CROWN JEWEL OF US HIGH TECHNOLOGY AND ECONOMIC GROWTH FROM 1985 TO 1991 THE INDUSTRY'S NET PROFIT MARGINS RANGED FROM 12 TO 16 ABOUT THREE TIMES HIGHER THAN THE AVERAGE OF FORTUNE 500 COMPANIES IN 1991 ACCORDING TO A CONGRESSIONAL STUDY NET PROFITS FOR THE TOP 20 DRUG MAKERS AMOUNTED TO 151 OF SALES COMPARED WITH 32 FOR ALL FORTUNE 500 COMPANIES BUT THE ONCESOARING STOCK PRICES OF THE DRUG COMPANIES HAVE BEEN FALLING AS THEY HAVE DRAWN MORE AND MORE POLITICAL FIRE ON FRIDAY MR CLINTON LET THE DRUG COMPANIES HAVE IT WITH BOTH BARRELS ANNOUNCING A PLAN TO MORE THAN DOUBLE THE SIZE OF THE NATION'S CHILDHOODVACCINATION PROGRAM THE PRESIDENT CHARGED THAT THE INDUSTRY SPENDS 1 BILLION MORE EACH YEAR ON ADVERTISING AND LOBBYING THAN IT DOES ON DEVELOPING NEW AND BETTER DRUGS HE ADDED WE CANNOT HAVE PROFITS AT THE EXPENSE OF OUR CHILDREN FOR THEIR PART DRUG COMPANIES COMPLAIN THEY ARE BEING WRONGLY SINGLED OUT ARGUING THAT THE PRESIDENT'S MARKETING FIGURES ARE OVERSTATED AND THAT THEIR HIGH PRICES REFLECT THE COST OF RESEARCH AND THE EXPENSIVE PROCESS OF GAINING GOVERNMENT APPROVAL FOR NEW MEDICINES IN ANY EVENT THEY SAY THEIR PRICE INCREASES HAVE BEGUN TO MODERATE ADVISERS TO THE PRESIDENT SAY THE DRUG INDUSTRY IS ONLY THEIR FIRST TARGET NEXT UP INSURANCE COMPANIES WHO WILL BE ACCUSED OF CHARGING EXCESSIVE PREMIUMS UNFAIRLY RESTRICTING COVERAGE AND SPENDING TOO MUCH ON NEEDLESS BUREAUCRATIC PAPERWORK WE'LL BE TRYING TO CHANGE THE HEALTHCARE SYSTEM SAYS TOP CLINTON STRATEGIST JAMES CARVILLE THOSE WHO GET IN YOUR WAY YOU TRY TO RUN OVER BY SAYING THEY ARE PUTTING THEIR SELFINTEREST AGAINST THE NATIONAL INTEREST IT'S A TIMEHONORED TACTIC FOR PRESIDENTS JOHN F KENNEDY USED IT IN THE EARLY 1960S WHEN HE JAWBONED THE STEEL INDUSTRY OVER PRICE INCREASES RONALD REAGAN DID THE SAME WHEN HE PUSHED THROUGH AN OVERHAUL OF THE TAX CODE IN 1986 IN MR CLINTON'S CASE IT'S A STRATEGY HE IS LIKELY TO ADOPT NOT JUST IN THE HEALTHCARE FIGHT BUT IN THE BROADER STRUGGLE TO EFFECT SWEEPING ECONOMIC CHANGE IN THE COUNTRY IN PICKING THE DRUG INDUSTRY AS HIS FIRST TARGET THE PRESIDENT HAS CHOSEN A GROUP WITH SERIOUS PUBLICRELATIONS AND POLITICAL PROBLEMS THAT IT HAS DONE LITTLE TO FIX THE PHARMACEUTICAL INDUSTRY FARED VERY WELL IN THE 1980S SHARPLY RAISING PRICES AND PROFITS FOLLOWED SAYS UWE REINHARDT A PROFESSOR OF ECONOMICS AT PRINCETON UNIVERSITY YOU MIGHT SAY THE COMPANIES ARE GETTING WHAT THEY DESERVE THE DRUG COMPANIES CERTAINLY HAD AMPLE WARNING THAT THE POLITICAL HEAT WAS RISING DURING LAST YEAR'S PRESIDENTIAL CAMPAIGN MR CLINTON REGULARLY HAMMERED THEM FOR ALLEGED PRICE GOUGING AND GENERAL INSENSITIVITY THE INDUSTRY'S RESPONSE WAS TO CONTINUE TO RAISE PRICES AND UNLIKE MOST OTHER INDUSTRIES TO POUR MORE MONEY INTO THE CAMPAIGN COFFERS OF REPUBLICANS THAN DEMOCRATS ON THE WALLS IN HIS OFFICE 44 FLOORS ABOVE NEW YORK'S PARK AVENUE RICHARD GELB THE CHAIRMAN AND CHIEF EXECUTIVE OF BRISTOLMYERS SQUIBB CO HAS SEVERAL PHOTOGRAPHS OF HIMSELF WITH GEORGE BUSH THE TWO MEN WERE BOARDINGSCHOOL CLASSMATES WHO HAVE MAINTAINED A CORDIAL RELATIONSHIP EVER SINCE DURING MR BUSH'S PRESIDENCY MR GELB FELT HE HAD AN ALLY IN THE WHITE HOUSE NOW WITH THE PRESIDENCY AS WELL AS BOTH HOUSES OF CONGRESS IN DEMOCRATIC HANDS ALL THAT HAS CHANGED MAKING MATTERS WORSE FOR THE COMPANIES ONE OF MR CLINTON'S CLOSEST ALLIES IS DEMOCRATIC SEN DAVID PRYOR OF ARKANSAS WHO OVER THE PAST SEVERAL YEARS HAS BECOME A FIERCE CRITIC OF THE INDUSTRY FOR A LONG TIME I WAS THE FLEA ON THE BACK OF A BIG DOG SEN PRYOR SAYS OF THE DRUG COMPANIES I THINK THEY'RE PAYING MORE ATTENTION NOW THE PRESIDENT'S ALLIANCE WITH MR PRYOR ON THE ISSUE DATES BACK SEVERAL YEARS TO THE SENATOR'S EFFORTS WITH THE NATION'S GOVERNORS INCLUDING MR CLINTON TO FORCE THE COMPANIES TO SELL DRUGS AT LOWER PRICES TO STATEADMINISTERED MEDICAID PROGRAMS JUST AS IMPORTANT ARE SEN PRYOR'S TIES TO HILLARY RODHAM CLINTON WHO HAS THE TASK OF DESIGNING THE ADMINISTRATION'S HEALTH PLAN THE SENATOR HELD HEARINGS ON THE HIGH COST OF DRUGS FOR CHILDREN WHEN MRS CLINTON WAS WORKING ON THE ISSUE FOR THE CHILDREN'S DEFENSE FUND WHOSE PRESIDENT MARIAN WRIGHT EDELMAN WAS INSTRUMENTAL IN FORMING THE FIRST LADY'S VIEWS ON THE SUBJECT SEN PRYOR WILL HAVE CONSIDERABLE INFLUENCE IN SHAPING HEALTHCARE POLICY MR CARVILLE SAYS MRS CLINTON THINKS THE WORLD OF HIM AMONG OTHER THINGS SHE HAS CHOSEN MR PRYOR'S TOP HEALTHCARE AIDE CHRISTOPHER JENNINGS TO WORK WITH THE WHITE HOUSE'S HEALTHCARE TASK FORCE SOME DRUG EXECUTIVES ACKNOWLEDGE THAT THEY DIDN'T TAKE SEN PRYOR'S EFFORTS VERY SERIOUSLY IN YEARS PAST THEY DO NOW BUT AS THEY SCRAMBLE TO DEFEND THEMSELVES THEY AREN'T LIKELY TO GET MUCH SYMPATHY FROM A PUBLIC THAT HAS SEEN PRICES MARCH RELENTLESSLY UPWARD ACCORDING TO PRIME INSTITUTE A PHARMACEUTICAL RESEARCH CENTER AT THE UNIVERSITY OF MINNESOTA THE PRICES OF SOME WIDELY USED MEDICINES JUMPED FROM 100 TO 150 BETWEEN 1987 TO 1992 FOR INSTANCE THE WHOLESALE PRICE OF COUMADIN A HEART MEDICINE DISCOVERED DECADES AGO AND SOLD BY A JOINT VENTURE OF DU PONT CO AND MERCK INC ROSE 1594 DURING THAT TIME TO 53 FOR A BOTTLE OF 100 PILLS WHILE DU PONT'S SINEMET AN OLD DRUG FOR PARKINSON'S DISEASE INCREASED BY 1312 TO 72 FOR 100 PILLS MEANWHILE MANY NEW DRUGS HAVE BEEN INTRODUCED AT SKYHIGH LEVELS GLAXO INC'S NEW ANTIBIOTIC CEFTIN COSTS 12074 AT WHOLESALE FOR A PACKAGE OF 60 TABLETS EVEN THOUGH THE SAME AMOUNT OF THE DRUG COSTS 6901 IN CANADA JOHNSON & JOHNSON IS CHARGING ABOUT 1500 FOR A YEAR'S SUPPLY OF ITS RECENTLY APPROVED CANCER DRUG LEVAMISOLE EVEN THOUGH THE COMPANY ONLY CHARGED 14 FOR THE SAME DRUG WHEN IT WAS USED AS A VETERINARY PRODUCT DRUG COMPANIES COUNTER THAT IT'S MISLEADING AND UNFAIRLY INFLAMMATORY TO FOCUS ON SUCH NUMBERS THEY SAY THAT DRUG PRICES WERE KEPT ARTIFICIALLY LOW DURING THE 1970S AND THAT HIGHER PRICES WERE NECESSARY TO FUND THE EXTRAORDINARILY HIGH COST OF DISCOVERING AND DEVELOPING NOVEL THERAPIES INDEED THE INDUSTRY CLAIMS AND FEW DISPUTE THAT THE AVERAGE COST OF DISCOVERING AND MARKETING A NEW DRUG HAS RISEN TO MORE THAN 200 MILLION FROM ABOUT 80 MILLION A DECADE AGO THE RATE OF FAILURE IS FRIGHTENINGLY HIGH SAYS WILLIAM STEERE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PFIZER INC ONLY ABOUT ONE OUT OF EVERY 10 DRUGS TESTED ON HUMANS ACTUALLY MAKES IT TO PHARMACY SHELVES HE SAYS YES THERE ARE PROFITS IN THIS BUSINESS BUT THAT'S BECAUSE THE RISKS ARE VERY HIGH TOO THE US DRUG INDUSTRY IS EXPECTED TO SPEND MORE THAN 11 BILLION ON RESEARCH AND DEVELOPMENT THIS YEAR THAT'S MORE THAN THE FEDERAL GOVERNMENT'S NATIONAL INSTITUTES OF HEALTH SPENDS AND MANY OF THE COMPANIES THESE DAYS ARE FUNDING CUTTINGEDGE BASIC RESEARCH THE KIND OF DISCOVERY WORK THAT A DECADE AGO WAS FOUND ONLY IN A HANDFUL OF ACADEMIC LABORATORIES THE DRUG MANUFACTURERS DISPUTE MR CLINTON'S FIGURES ON ADVERTISING AND LOBBYING SAYING THE NUMBERS WHICH COME FROM A CONGRESSIONAL STUDY BY SEN PRYOR ARE INFLATED THE INDUSTRY ALSO ARGUES THAT SINGLING OUT THE DRUG INDUSTRY IS UNFAIR AND SHORTSIGHTED IT SAYS THAT DRUG COSTS ACCOUNTED FOR ONLY 7 OF TOTAL US HEALTHCARE COSTS LAST YEAR MOREOVER IT SAYS THAT A SEEMINGLY EXPENSIVE DRUG SUCH AS GLAXO'S ULCER MEDICINE ZANTAC ACTUALLY SAVES MONEY COMPARED WITH THE HIGH COSTS OF SURGERY OR RECURRENT HOSPITALIZATIONS THAT MIGHT OTHERWISE BE NEEDED CRITICS FOCUS ONLY ON A PARTICULAR DRUG'S PRICE WHEN IN FACT IT MUST BE LOOKED AT IN THE CONTEXT OF ALL HEALTH COSTS SAYS GERALD MOSSINGHOFF PRESIDENT OF THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE INDUSTRY'S WASHINGTON TRADE GROUP PHARMACEUTICAL THERAPY IS THE LEAST EXPENSIVE WAY TO TREAT MANY ILLNESSES WITHOUT ACKNOWLEDGING ANY PAST EXCESSES MR MOSSINGHOFF NONETHELESS INSISTS THAT THE INDUSTRY TODAY IS NOT THE SAME AS THE INDUSTRY IN THE MID1980S FOR ONE THING HE SAYS PRICE INCREASES ARE SLOWING DOWN TO 57 IN 1992 FROM 94 A YEAR EARLIER IN ADDITION HE SAYS THE INDUSTRY HAS TAKEN STEPS TO EASE THE FINANCIAL PAIN FOR INDIGENT PATIENTS BY SETTING UP A TOLLFREE NUMBER FOR DOCTORS TO GET FREE MEDICINES FOR THEM THE 800NUMBER LAUNCHED IN AUGUST IS NOW RECEIVING ABOUT 2500 CALLS A MONTH HE SAYS BUT THOSE ARGUMENTS CLEARLY HAVEN'T SWAYED CLINTON STRATEGISTS SUCH AS MR CARVILLE WHO SAYS THE FIGHT OVER HEALTH CARE WILL BE CENTRAL TO THE CLINTON PRESIDENCY FOR THE MOMENT THE INDUSTRY APPEARS LEADERLESS AND DIVIDED UNABLE TO MOUNT AN ORGANIZED OR EFFECTIVE RESPONSE TO THE POLITICAL FIRE TWO TELEPHONECONFERENCE CALLS EARLIER THIS MONTH AMONG TOP INDUSTRY EXECUTIVES ENDED WITHOUT ANY AGREEMENT OVER STRATEGY SEVERAL TIMES INDUSTRY LAWYERS WARNED THEM THAT DISCUSSIONS ABOUT PRICING POLICIES WOULD MAKE THE COMPANIES VULNERABLE TO FEDERAL PRICEFIXING CHARGES ANALYSTS WHO FOLLOW THE INDUSTRY POINT OUT THAT COMPANIES SUCH AS MERCK PFIZER GLAXO BRISTOLMYERS AND JOHNSON & JOHNSON WHICH HAVE RICH PIPELINES AND ARE SELLING RELATIVELY NEW MEDICINES AT PREMIUM PRICES CAN AFFORD TO HOLD BACK PRICE RISES BUT OTHER COMPANIES SUCH UPJOHN CO WARNERLAMBERT CO SCHERINGPLOUGH INC SYNTEX CORP AND MARION MERRELL DOW INC HAVE SHALLOW RESEARCH OPERATIONS AND FEW NEW DRUGS FOR THEM PRICE INCREASES ARE NEEDED TO FUND RESEARCH AND KEEP PROFITS HIGH ENOUGH TO KEEP SHAREHOLDERS HAPPY AT LEAST SOME ELEMENTS OF THE DRUG INDUSTRY WOULD LIKE TO MAKE PEACE WITH THE WHITE HOUSE REPRESENTATIVES OF SEVERAL COMPANIES THAT MANUFACTURE VACCINES ATTENDED A MEETING YESTERDAY WITH DOMESTIC POLICY ADVISER CAROL RASCO AND SOME COMPANIES LED BY P ROY VAGELOS THE CHAIRMAN OF MERCK HAVE SUGGESTED TO CLINTON ADMINISTRATION OFFICIALS THAT THE COMPANIES BE ALLOWED TO VOLUNTARILY KEEP DRUGPRICE INCREASES TO THE RATE OF INFLATION BUT OTHER COMPANIES ARE ANGERED BY MERCK'S PROMISE AND VOW NOT TO GO ALONG IN ANY CASE OFFICIALS CLOSE TO THE WHITE HOUSE SAY THE ADMINISTRATION IS SEEKING WAYS TO ENFORCE THESE PLEDGES OF PRICE RESTRAINT ONE IDEA IS A PRICEMONITORING BOARD THAT WOULD CALL ON COMPANIES WHOSE PRICES RISE ABOVE INFLATION TO PUBLICLY DEFEND THEMSELVES PRICE HIKES DEEMED UNJUSTIFIED MIGHT BE PENALIZED BY REDUCING PATENT LIFE OF CERTAIN DRUGS OR REMOVING TAX BREAKS THE WHITE HOUSE HAS EVEN SET UP A WORKING GROUP TO EXPLORE DRUGPRICE CONTROLS ACCORDING TO AN INTERNAL MEMO DISTRIBUTED TO MEMBERS OF MRS CLINTON'S TASK FORCE THE IDEA IS THAT CONTROLS WOULD BE TRIGGERED IF THE INDUSTRY VIOLATED VOLUNTARY PRICERESTRAINT GUIDELINES THE PRESIDENT IS CONSIDERING AT LEAST ONE MEASURE THAT COULD BE A POTENTIAL BOON TO THE DRUG INDUSTRY INCLUDING PRESCRIPTIONDRUG COVERAGE IN THE STANDARD PACKAGE OF HEALTH BENEFITS AVAILABLE TO ALL AMERICANS UNDER THE HEALTHCARE OVERHAUL PROPOSAL BUT SUCH A MEASURE MIGHT PROVE TOO EXPENSIVE TO PROPOSE AND IN ANY EVENT FOR RIGHT NOW THE WHITE HOUSE IS EMPHASIZING THE STICK RATHER THAN THE CARROT MR CLINTON IS ALREADY POISED TO GO AFTER SECTION 936 OF THE INTERNAL REVENUE CODE THE PROVISION THAT EXEMPTS FROM FEDERAL TAXATION INCOME EARNED THROUGH OPERATIONS IN PUERTO RICO AND OTHER US TERRITORIES DRUG COMPANIES BY FAR HAVE BEEN THE 17YEAROLD LAW'S PRIME BENEFICIARIES A REPORT LAST YEAR BY THE GENERAL ACCOUNTING OFFICE FOUND THAT IN 1987 THEY PAID AN AVERAGE OF 26512 TO PUERTO RICAN WORKERS AND RECEIVED AN AVERAGE OF 70788 IN TAX BENEFITS IN RETURN A PROPOSAL TO TRIM THE BENEFIT IS EXPECTED TO BE INCLUDED IN THE ECONOMIC PACKAGE THE PRESIDENT IS INTRODUCING TOMORROW NIGHT BUT SEN PRYOR FOR ONE ISN'T WAITING TODAY HE PLANS TO INTRODUCE A BILL TO REPEAL THE PROVISION AND REPLACE IT WITH A WAGEBASED CREDIT SEN PRYOR SAYS HIS PROPOSAL WOULD PRESERVE THE INCENTIVE FOR INVESTING IN PUERTO RICO AND OTHER TERRITORIES WHILE ELIMINATING A WINDFALL FOR THE DRUG COMPANIES THAT HE SAYS AMOUNTS TO 15 BILLION A YEAR HE WILL PROPOSE THAT SAVINGS FROM HIS MEASURE GO TO ALLOWING SELFINSURED PEOPLE TO DEDUCT THE ENTIRE COST OF THEIR HEALTHINSURANCE PREMIUMS ON THE FEDERAL INCOMETAX FORMS IN ANY EVENT HE SAYS FLATLY THE CURRENT PROVISION IS A GONER HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9302160129 930216 BUSINESS WORLD FOOD UNION TASTES GAINS EVEN AS TRENDS EAT AT BASE BY TIM W FERGUSON BEGINNING WITH AT LEAST TWO APPOINTMENTS THIS YEAR BILL CLINTON CAN BE EXPECTED TO CHANGE THE DISPOSITION OF THE NATIONAL LABOR RELATIONS BOARD PART OF RONALD REAGAN'S LEGACY WAS AN NLRB THAT DISPLEASED UNIONISTS WITH ITS RULINGS WHILE MOST PRIVATESECTOR UNIONS HAVE DECLINED IN MEMBERSHIP AND BLAMED THE NLRB FOR PART OF THEIR TROUBLES ONE PROMINENT EXCEPTION IS THE UNITED FOOD AND COMMERCIAL WORKERS SECOND ONLY TO THE TEAMSTERS OUTSIDE OF GOVERNMENT IT CLAIMS TO REPRESENT 13 MILLION EMPLOYEES A GAIN OF 100000 IN THE PAST DECADE CANADA HAS 10 ALTHOUGH ITS PRIMARY BASE SUPERMARKETS REMAINS A BATTLEGROUND THE ACCOMPANYING TABLE SUGGESTS THAT THE SITUATION HAS AT LEAST STABILIZED THERE ARE SO MANY UNIONS THAT SAID NOW THAT THE REAGAN BOARD IS IN IT'S A BAD TIME TO ORGANIZE SO WE WON'T' WELL A UNION THAT SAYS THAT ISN'T GOING TO ORGANIZE CRACKS AL ZACK AN OFFICIAL AT UFCW'S HEADQUARTERS IN WASHINGTON WHAT I'M SAYING IS THAT RONALD REAGAN MADE US A BETTER COMPETITOR THE UNION WHICH GREW OUT OF A MERGER OF THE RETAIL CLERKS AND MEAT CUTTERS SAYS IT HAS BYPASSED THE NLRB MANY TIMES BY OBTAINING SIGNATURE CARDS FROM AN OUTRIGHT MAJORITY IN A BARGAINING UNIT AND THEN PRESSING THE EMPLOYER TO RECOGNIZE A FAIT ACCOMPLI THE EMPLOYEES ARE SOMETIMES WON OVER BY MEMBERS FROM NEARBY STORES 20000 ARE TRAINED YEARLY FOR THIS TASK INSTEAD OF PAID ORGANIZERS THE UFCW LED BY LOWPROFILE PRESIDENT WILLIAM WYNN TRIES TO SIC LOCALS ON NONUNION OPERATORS RATHER THAN STORES ALREADY HELD IT EMPHASIZES THAT THE UNIONS' MARKET SHARE IN A GIVEN AREA DETERMINES HOW GENEROUS A CONTRACT IT CAN HOPE TO WIN FROM ANY CHAIN THERE DESPITE ITS OVERALL RELATIVE SUCCESS OF LATE THE UNION IS UNDER PRESSURE FROM NONUNION OPERATORS SUCH AS FOOD LION AND PUBLIX THAT ARE FINANCIALLY SOLID AND HAVE BIG CHUNKS OF THEIR STOCK HELD BY ONE INVESTOR THEY ARE ABLE TO UNDERCUT UNIONIZED CHAINS PARTICULARLY THOSE CARRYING HEAVY DEBTS AFTER LEVERAGED BUYOUTS SWEPT THE INDUSTRY IN RECENT YEARS MR ZACK REPORTS AN INCREASING NUMBER OF FLAGS WARNING HIM THAT UNIONIZED STORES HAVE FALLEN BELOW A 50 SHARE THAT LEADS TO THE UFCW'S NEXT STRATAGEM IF IT CAN'T SUCCEED IN UNIONIZING THE LOWCOST SUPERMARKET CHAINS OR THE DISCOUNT AND WAREHOUSE RETAILERS THAT ARE INCREASINGLY ENTERING THE BUSINESS THEN IT WILL ALLEGE VIOLATIONS OF LABOR HEALTH AND SAFETY LAWS APPLYING TO ALL BUSINESSES THE NEWS MEDIA HAVE BEEN ESPECIALLY HELPFUL TO THIS UNION'S CAUSE A FEW MONTHS AGO FOOD LION WAS SENT REELING BY REPORTS IT HAD MISHANDLED MEAT AND WORKED PEOPLE OFF THE CLOCK SIMILARLY WALMART WHICH HAS GOTTEN INTO GROCERIES WAS STUNG BY A BROADCAST REPORT THAT IT CHEATED ON ITS BUY AMERICAN THEME IN RECENT YEARS SAFEWAY AND CLOTHING RETAILER NORDSTROM SUFFERED BAD PRESS AFTER RUNINS WITH THE UFCW NORDSTROM RECENTLY SETTLED A SUIT OVER ITS COMMISSIONBASED PAY PRACTICES WHICH THE UNION COMPLAINS LED TO AFTERHOURS WORK IN THE NAME OF CUSTOMER SERVICE THE UFCW REPRESENTS FEW DEPARTMENTSTORE PERSONNEL AND ACTUALLY WAS VOTED OUT OF ITS NORDSTROM BEACHHEAD BEFORE THAT SUIT WAS RESOLVED THE UNION APPLIED A VARIETY OF PRESSURES INCLUDING A BOYCOTT TO GAIN A CONTRACT LATE LAST YEAR FOR CLERKS AT THE SMITTY'S GROCERY CHAIN IN ARIZONA IT ALREADY HAD THE BUTCHERS THERE THIS ON TOP OF AN EARLIER LOCAL PACT WITH SMITH'S FOOD AND DRUG CENTERS REPRESENTED ONE OF THE BIGGEST LABORORGANIZING SUCCESSES IN RECENT ARIZONA HISTORY REPORTED ONE NEWSPAPER IN THAT RIGHTTOWORK STATE DESPITE THE UNION'S TYPICAL DEMAND FOR FIRSTDOLLAR MEDICAL COVERAGE A HOARY BENEFIT IT HAS MANAGED TO KEEP IN MANY PARTS OF THE COUNTRY THE UFCW TIES WORKERS INTO A HEALTHINSURANCE TRUST THAT CAN COST AN EMPLOYER LESS THAN A PLAN WITH COPAYMENTS ON THE OPEN MARKET THE UNION ALSO INSISTS THAT ITS WORK FORCE IS MORE STABLE AND THUS MORE PRODUCTIVE THAN EMPLOYEES WHO CUT THEIR OWN DEALS HOURLYWAGE AGREEMENTS HAVE BEEN RESTRAINED OVER THE PAST DECADEEVIDENCE THAT THE UFCW HAS HAD TO BEND WITH THE COMPETITIVE WIND A BIGGER RUB WITH MANAGEMENT HAS BEEN OVER WORK RULES AND EXTRA PAY FOR WEEKEND DUTY AS SHOPPING PATTERNS ADJUST TO FIT TWOEARNER HOUSEHOLDS STORES HAVE TRIED TO ACCOMMODATE BUT USUALLY MUST PAY A PREMIUM RATE TO STAFF THE NEW HOURS MR ZACK REPORTS THAT HIS MEMBERSHIP MANY OF WHOM WORK LESS THAN A 40HOUR WEEK TELLS THE UNION THAT MORE TIME OFF IS A FOREMOST CONCERN AT LEAST IN REGIONS NOT SUFFERING FROM RECESSION A LONGSTANDING GRIPE IS THAT SEASONED WORKERS MAY NOT REGULARLY HAVE TWO CONSECUTIVE DAYS OFF THIS HEARKENS TO THE FORMATIVE YEARS OF BOTH THE CLERKS AND BUTCHERS UNIONS EARLY THIS CENTURY WHEN ENDLESS HOURS AND SIXDAY WEEKS WERE THE COMON RALLYING POINT WHERE UNIONIZED STORES HAVE SLIPPED THE UFCW'S BARGAINING POSITION HAS AS WELL THIS WAS EVIDENT LAST YEAR IN DETROIT WHERE A BITTER STRIKE AGAINST KROGER'S ENDED AFTER NINE WEEKS WITH BOTH SIDES UNHAPPY MR ZACK INVOLVED IN CONCLUDING THE WALKOUT ACKNOWLEDGES THAT THE MARKET THERE HAD GOTTEN AWAY FROM HIS LOCAL THE UFCW LEADERSHIP IS DECENTRALIZED AND WHAT YOU GET ARE PEOPLE WHO ARE ALWAYS BEATING UP ON THE SAME GUYS SAYING TO THEIR MEMBERS THAT THE ENEMY IS THE DETROIT KROGER'S WELL THE COMMON ENEMY IS THE UNORGANIZED EMPLOYER IN THE MEATPACKING INDUSTRY UNIONIZATION RATES ARE BACK ABOVE 60 HE SAYS AFTER DIPPING DOWN TO ABOUT HALF WIDE FLUCTUATION HAS BEEN THE PATTERN IN THAT BUSINESS THROUGHOUT THE 1900S THE UFCW OF LATE HAS SCORED GAINS IN CATFISH PROCESSING IN THE SOUTH ORGANIZING MOST OF THE MAJOR FACILITIES IT HAS HAD LESS SUCCESS IN THE GREATLY EXPANDED CHICKEN PLANTS AND MR ZACK CONCEDES THAT RIGHT NOW WE DON'T HAVE THE TIME TO PUT INTO A MAJOR UNDERTAKING THERE WHENEVER FOOD CAN BE FROZEN OR PACKED SO AS TO BE SOLD WEEKS LATER AND TECHNOLOGY IS WIDENING THE OPTIONS IN THIS REGARD THE UFCW LOSES ONE OF ITS GREATEST ADVANTAGES THE SITESPECIFIC NATURE OF ITS MEMBERS' WORK MEAT AND FISH PROCESSING CAN GO OFFSHORE WHICH IS WHY THE UNION OPPOSES NORTH AMERICAN FREE TRADE FOR NOW THOUGH THE UFCW SEEMS TO HAVE WON ITSELF SOME BREATHING ROOM AND EVEN WITH A MORE RECEPTIVE NLRB IN WASHINGTON IT'S LIKELY TO STICK TO ORGANIZING OUTSIDE OF THE TEDIOUS PROCEDURES OF THE FEDERAL STATUTE LABOR ECONOMIST LEO TROY OF RUTGERS ADMITS HE'S MYSTIFIED BY THE UNION'S COMPARATIVE SUCCESS IN A HOTLY COMPETITIVE MARKETPLACE BUT IN CONTRAST WITH OTHERS IN THE AFLCIO HE SAYS BY WAY OF IRONIC COMPLIMENT I THINK THEY'VE JUST GOT A BETTER MANAGEMENT 9302160128 930216 DUTCH RETAIL SALES ROSE AMSTERDAM RETAIL SALES IN THE NETHERLANDS ROSE 7 IN DECEMBER FROM A YEAR EARLIER DUE MAINLY TO THE FACT THAT THERE WAS ONE MORE SHOPPING DAY IN THE LATEST REPORTING PERIOD THAN A YEAR EARLIER INDEED ADJUSTING THE DATA FOR THE EXTRA SHOPPING DAY LAST YEAR THERE WOULD HAVE BEEN ONLY A 2 INCREASE IN RETAIL SALES THE CENTRAL BUREAU FOR STATISTICS SAID THE ACTUAL 7 RISE REPORTED FOR DECEMBER REFLECTED A 07 INCREASE IN RETAIL PRICES AND A 63 INCREASE IN UNIT SALES THE GOVERNMENT AGENCY ADDED 9302160127 930216 REVIEW & OUTLOOK EDITORIAL LABOR PAINS WHEN BILL CLINTON APPOINTED ROBERT REICH HIS OLD RHODES SCHOLAR BUDDY TO BE LABOR SECRETARY WE WONDERED WHAT DIRECTION THE INTELLECTUALLY FERTILE MR REICH WOULD TAKE HIS DEPARTMENT THE EARLY RETURNS AREN'T PROMISING IN JUST THREE WEEKS MR REICH HAS ALREADY BACKED THE REPEAL OF TWO EXECUTIVE ORDERS THAT ENHANCED THE RIGHTS OF UNION MEMBERS AND UNSKILLED CONSTRUCTION WORKERS CONSIDERED LIFTING THE 12YEAROLD BAN ON REHIRING FIRED PATCO AIR TRAFFIC CONTROLLERS AND IS MOVING TO SHORE UP UNION PAY SCALES BY BACKING A HIKE IN THE MINIMUM WAGE NONE OF THESE MOVES WILL CREATE JOBS INDEED THEY WILL SURELY DESTROY SOME THE MINIMUM WAGE WAS LAST RAISED TO 425 AN HOUR FROM 380 LESS THAN TWO YEARS AGO MR REICH IS GEARING UP TO ASK FOR A 10 INCREASE AND THEN INDEX THE MINIMUM WAGE TO INFLATION MAKING ITS ANTIEMPLOYMENT TENDENCIES A PERMANENT FIXTURE OF THE ECONOMY A HIGH MINIMUM WAGE HAS LONG BEEN FAVORED BY UNIONS WHICH KNOW IT PUTS UPWARD PRESSURE ON WAGES IN GENERAL THE LOSERS ARE UNSKILLED WORKERS WHO HAVEN'T YET ACQUIRED ENOUGH GOOD WORK HABITS TO EARN THE MINIMUM WAGE THE MINIMUM WAGE LAW SHOULD BE CALLED THE MINIMUM OPPORTUNITY LAW SAYS ECONOMIST WALTER WILLIAMS IT SAWS OFF THE BOTTOM RUNGS OF THE ECONOMIC LADDER THAT MILLIONS USED TO CLIMB INTO THE MIDDLE CLASS MR REICH IS A FAN OF JOB TRAINING BUT THE BEST SUCH PROGRAM IS ONTHEJOB EXPERIENCE AND THE DAVISBACON ACT EFFECTIVELY BLOCKS UNSKILLED CONSTRUCTION WORKERS FROM BEING HIRED ON ANY FEDERALLY SUBSIDIZED BUILDING PROJECT IN OCTOBER GEORGE BUSH ISSUED AN EXECUTIVE ORDER SUSPENDING DAVISBACON IN SOUTH FLORIDA COASTAL LOUISIANA AND HAWAII TO SPEED UP REPAIRS FROM HURRICANE DAMAGE PRESIDENT CLINTON'S DECISION EARLIER THIS MONTH TO REVOKE THAT EXECUTIVE ORDER WILL WIPE OUT BETWEEN 5000 AND 11000 CONSTRUCTION JOBS THAT WOULD HAVE BEEN CREATED AT THE LOWER WAGES IRONICALLY FOR MR CLINTON DAVISBACON IS A 1931 LAW WRITTEN TO PREVENT BLACK WORKERS FROM COMPETING WITH WHITE CONSTRUCTION UNIONS AT THE SAME TIME HE PROPPED UP DAVISBACON MR CLINTON ALSO REVOKED ANOTHER EXECUTIVE ORDER IMPLEMENTING THE SUPREME COURT'S 1988 BECK DECISION BECK HELD THAT UNION MEMBERS COULDN'T BE COMPELLED TO PAY DUES THAT FURTHER A POLITICAL CAUSE MANY UNIONS SPEND MORE THAN 75 OF THEIR DUES INCOME ON POLITICAL OR OTHER NONBARGAINING ACTIVITIES RESCINDING THE ORDER PUTS AN END TO THE POSTING OF NOTICES AND OTHER ACTIONS TO INFORM UNION WORKERS OF THEIR RIGHTS UNDER BECK THE SAME RESISTANCE TO A SUPREME COURT DECISION HAPPENED AFTER THE 1954 BROWN V BOARD OF EDUCATION DECISION INACTION THAT BILL CLINTON HAS CALLED UNCONSCIONABLE IN THE WAKE OF ALL THIS IT'S FAIR TO ASK JUST WHAT BOB REICH AND THE CLINTON ADMINISTRATION ARE UP TO ACADEMICS IN GOVERNMENT ALWAYS HAVE TO STRUGGLE TO MAINTAIN THEIR INTELLECTUAL CREDIBILITY WHILE COMPLYING WITH THE DEMANDS OF POLITICS SOME SUCH AS FORMER REAGAN BUDGET DIRECTOR JIM MILLER PULLED THAT TRICK OFF NEATLY THERE WAS ALSO THE EXAMPLE OF PAT MOYNIHAN WHO SERVED BOTH LYNDON JOHNSON AND RICHARD NIXON THEN THERE IS MR REICH WHO IN HIS GENUFLECTIONS TO REACTIONARY UNIONISM IS FAST LOSING HIS REPUTATION AS AN INDEPENDENT THINKER HE MIGHT DO WELL TO RECALL THE FATE OF A FORMER COLLEAGUE FROM HARVARD'S JFK SCHOOL OF GOVERNMENT WHO WENT TO WASHINGTON BECAME TOO CLEVER BY HALF AND WAS ULTIMATELY CAPTURED AND REPUDIATED BY THE BELTWAY HIS NAME WAS DICK DARMAN 9302160126 930216 WHO'S NEWS BOOTH WILL QUIT TURNER BROADCAST TO START OWN FIRM BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC SAID RANDY L BOOTH PLANS TO RESIGN AS THE MEDIA COMPANY'S VICE PRESIDENT OF FINANCE TO START HIS OWN CONSULTING FIRM WITH TURNER AS ITS INITIAL CLIENT MR BOOTH 40 YEARS OLD SAID HE IS MOVING ON BECAUSE AS YOU GET OLDER YOU THINK ABOUT BEING YOUR OWN BOSS HE SAID HE'LL REMAIN AT TURNER UNTIL IT NAMES A SUCCESSOR AND WILL CONTINUE TO ATTEND BOARD MEETINGS AFTERWARD HE SAID HIS COMPANY WILL DO ADVISORY WORK IN FINANCING MERGERS AND ACQUISITIONS BUT THAT HE HASN'T CHOSEN A NAME OR A PARTICULAR NICHE MR BOOTH JOINED TURNER IN 1986 AFTER AUDITING TURNER FOR PRICE WATERHOUSE HE INITIALLY HELPED TURNER SELL ASSETS AFTER ITS ACQUISITION OF MGM/UA ENTERTAINMENT CO AND WAS NAMED VICE PRESIDENT OF FINANCE IN 1988 AS CHIEF FINANCIAL OFFICER MR BOOTH HAS HELPED TAME THE COMPANY'S CUMBERSOME DEBT STRUCTURE AND CAPITALIZE ON ITS IMPROVED STOCK PERFORMANCE HE HELPED PUT TOGETHER TURNER'S 320 MILLION ACQUISITION OF HANNABARBERA PRODUCTIONS INC IN 1991 WHICH RELIED ON EQUITY FINANCING AND LAST YEAR MR BOOTH HELPED CONVERT PREFERRED STOCK TO COMMON STOCK AND RAISE MORE THAN 200 MILLION IN A STOCK OFFERING ASSOCIATES SAID MR BOOTH HAS WANTED TO SPECIALIZE IN DEALMAKING RATHER THAN MANAGING THE DETAILS OF BUDGETS AND BANK RELATIONSHIPS I THINK HE'S PARTICULARLY WELLSUITED TO BE IN THIS TYPE OF ROLE SAID TERENCE F MCGUIRK TURNER'S EXECUTIVE VICE PRESIDENT MR BOOTH SAID HIS DEPARTURE ISN'T RELATED TO TURNER'S TALKS WITH CAPITAL CITIES/ABC INC AND OTHER MEDIA COMPANIES WHICH REPORTEDLY HAVE INCLUDED DISCUSSIONS OF POSSIBLE MERGERS THIS IS SIMPLY ME HAVING A DESIRE TO CREATE SOMETHING FOR MYSELF HE SAID ADDING THAT TED TURNER THE COMPANY'S CHIEF EXECUTIVE AND I HAVE TALKED ABOUT IT FOR A WHILE THE COMPANY GAVE NO TIMETABLE FOR CHOOSING A NEW VICE PRESIDENT OF FINANCE CHRISTIAN L BECKEN 39 TURNER'S TREASURER FOR THE LAST SEVEN YEARS IS CONSIDERED BY SOME INSIDERS TO BE A LOGICAL CANDIDATE SEPARATELY ANOTHER TURNER EXECUTIVE LOU LATORRE 39 CONFIRMED THAT HE PLANS TO LEAVE THE COMPANY SHORTLY MR LATORRE EXECUTIVE VICE PRESIDENT OF ADVERTISING SALES FOR TURNER ENTERTAINMENT NETWORKS AND A 12YEAR TURNER VETERAN SAID HE WILL BECOME CHIEF EXECUTIVE OFFICER OF PLATINUM PRODUCTIONS INC A NEW CLOSELY HELD PRODUCER OF PAYPERVIEW TELEVISION EVENTS RANDY S FREER A 32YEAR OLD SENIOR VICE PRESIDENT OF ADVERTISING SALES WITH TURNER IS SLATED TO SUCCEED MR LATORRE 9302160125 930216 TECHNOLOGY MATSUSHITA AND SONY IN TALKS TO SET NEW DIGITAL VCR FORMAT SPECIAL TO THE WALL STREET JOURNAL TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO AND SONY CORP SAID THEY ARE HOLDING TALKS TO ESTABLISH A COMMON FORMAT FOR DIGITAL VIDEOCASSETTE RECORDERS SEVERAL OTHER VCR MAKERS INCLUDING HITACHI LTD AND TOSHIBA CORP OF JAPAN PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THOMSON SA OF FRANCE ARE PARTICIPATING IN THE DISCUSSIONS TO CREATE A NEW INDUSTRY STANDARD A SONY SPOKESMAN SAID BUT MATSUSHITA AND SONY SAID IN STATEMENTS THAT THEY HAVEN'T YET HAMMERED OUT TECHNICAL DETAILS OF A DIGITAL FORMAT DIGITAL MACHINES WOULD ALLOW THE RECORDING AND PLAYBACK OF HIGHDEFINITION TELEVISION WITH SHARPER PICTURES AND CRISPER SOUND THAN THAT AVAILABLE FROM CONVENTIONAL ANALOG VCRS WHICH ARE CURRENTLY IN USE A SONY SPOKESMAN SAID THE HOPE IS TO HAVE THE DIGITAL UNITS ON THE MARKET IN TIME FOR JAPAN'S FULLSCALE DEBUT OF HDTV BROADCASTS IN 1997 HE SAID DEVELOPMENT OF A STANDARD WILL TAKE THREE TO FOUR YEARS THE MOVE TOWARD COMMON GROUND MARKS A SWITCH IN MATSUSHITA'S AND SONY'S RELATIONSHIP WHICH PREVIOUSLY HAS BEEN MARKED BY AN INTENSE RIVALRY OF FORMATS AND TECHNOLOGY IN THE HOME VIDEO FIELD MATSUSHITA'S VHS FORMAT PROVED MORE POPULAR THAN SONY'S BETA FORMAT WHILE IN THE AUDIO MARKET THE WAR IS JUST BEGINNING BETWEEN THE MATSUSHITABACKED DIGITAL COMPACT CASSETTE AND THE SONY MINI DISC THE ELECTRONIC INDUSTRIES ASSOCIATION OF JAPAN ESTIMATES THAT IN THE YEAR 2000 THE ANNUAL DOMESTIC MARKET FOR DIGITAL VCRS WILL TOTAL 680 BILLION YEN 562 BILLION 9302160124 930216 GIANT FOOD SAYS ITS PROFIT MARGINS SALES HAVE IMPROVED IN RECENT WEEKS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GIANT FOOD INC AFTER TWO YEARS OF BATTLING CUSTOMER CUTBACKS AND UNIMPRESSIVE EARNINGS PERFORMANCES BELIEVES IT MAY HAVE FINALLY TURNED A CORNER THE OPERATOR OF SUPERMARKETS THAT DOMINATE THE WASHINGTON AREA SAID SALES AND PROFIT MARGINS HAVE STRENGTHENED IN THE PAST EIGHT TO 10 WEEKS THERE IS A LITTLE MORE OPTIMISM ON OUR PART SAID DAVID SYKES SENIOR VICE PRESIDENT FINANCE CUSTOMERS ARE BEGINNING TO COME BACK A LITTLE BIT AND ARE GETTING CLOSER TO BUYING THE SAME NUMBER OF ITEMS THEY DID A YEAR AGO IN AN INTERVIEW MR SYKES SAID HE EXPECTS GIANT'S RESULTS FOR THE 16WEEK FISCAL FOURTH QUARTER ENDING FEB 27 TO BE SOMEWHAT BETTER THAN THE PAST 36 WEEKS AND A LITTLE BETTER THAN THE 42 CENTS A SHARE POSTED IN THE YEAREARLIER PERIOD ANALYSTS ESTIMATE GIANT'S FOURTHQUARTER NET INCOME AT 43 CENTS A SHARE IN THE FISCAL NINE MONTHS GIANT EARNED 448 MILLION OR 75 CENTS A SHARE DOWN 28 FROM THE YEAR BEFORE MR SYKES ALSO PREDICTED THAT FULLYEAR SALES SHOULD COME IN AROUND 348 BILLION COMPARED WITH 349 BILLION A YEAR AGO HOWEVER HE SAID THE LAST FISCAL YEAR TOTALED 53 WEEKS EXCLUDING THE EXTRA WEEK FULLYEAR SALES ARE EXPECTED TO HAVE PICKED UP A SLIGHT 15 MILLION BUT THE COMPANY STRESSED THAT THE FIERCE PRICE WARS OF THE GROCERY INDUSTRY ARE FAR FROM OVER THE COMPETITIVE SITUATION REMAINS DIFFICULT MR SYKES SAID THE BOTTOM LINE IS YOU MUST MAINTAIN THE CUSTOMER COUNT BECAUSE IF YOU LOSE THE CUSTOMER YOU'VE GOT NOTHING FURTHERMORE GIANT IS CONFIDENT CONSUMER INTEREST IN GETTING MORE FOR LESS WILL CONTINUE UNABATED EVEN IF THE ECONOMY IMPROVES PRIVATELABEL PRODUCTS NOW MAKE UP 15 TO 20 OF TOTAL SALES A DOUBLEDIGIT INCREASE FROM FIVE YEARS AGO AND THE COMPANY HAS NO PLANS TO ABANDON ITS SUCCESSFUL SUPERDEALS PROGRAM WHICH SELLS PRODUCTS IN BULK SIZES TO COMPETE WITH WAREHOUSE CLUBS OR ITS DOUBLE VALUE DEALS WHICH DOUBLES THE DISCOUNTS GIVEN BY MANUFACTURERS' COUPONS UP TO 50 CENTS SUCH PROMOTIONAL STRATEGIES DON'T COME WITHOUT COST GIANT AND VIRTUALLY EVERY OTHER SUPERMARKET CHAIN IN THE COUNTRY HAVE BEEN STRUGGLING IN WHAT HAS BEEN CHARACTERIZED AS THE FIRST INDUSTRY SLUMP IN RECENT HISTORY AS LATE AS 1990 MANY BELIEVED SUPERMARKETCOMPANY STOCKS WOULD PROVIDE A RECESSIONPROOF HAVEN FOR INVESTORS BUT SHOPPERS HAVE CLEARLY DISPROVED THESE THEORIES CLIPPING COUPONS AND FLOCKING TO WAREHOUSE CLUBS FOR BARGAINS WHILE THE INDUSTRY REMAINS ANEMIC GIANT IS STILL FORGING AHEAD WITH AN EXPANSION PLAN TO ADD SIX STORES AND EXPAND FOUR OTHERS THIS YEAR THE FIRST A 61000SQUAREFOOT FOODDRUG UNIT IS EXPECTED TO OPEN IN THE SPRING OF 1994 PETE MANOS PRESIDENT OF GIANT NOTED THAT THE COMPANY PLANS TO INCREASE ITS TOTAL SQUARE FOOTAGE MORE THAN 5 IN THE NEXT 15 TO 18 MONTHS COMPARED WITH 2 TO 3 IN RECENT YEARS DELAWARE NOW HAS ENOUGH ROOFTOPS THAT WE'RE COMFORTABLE GOING INTO THE AREA HE SAID WE HAVE THE FINANCES AND THE PHYSICAL ABILITY TO MOVE AS RAPIDLY AS THE LOCATIONS ARE FOUND 9302160123 930216 HUNGARY'S JOBLESS RATE RISES FRANKFURT HUNGARY'S UNEMPLOYMENT RATE STOOD AT 133 AT THE END OF JANUARY UP FROM 122 AT THE END OF DECEMBER THE MTIECONEWS AGENCY REPORTED THE NUMBER OF UNEMPLOYED INCREASED TO 694000 PEOPLE FROM 663000 ACCORDING TO THE NEWS AGENCY WHICH CITED DATA FROM THE MINISTRY OF LABOR 9302160122 930216 WEST GERMAN CONSUMER PRICES WIESBADEN WESTERN GERMAN CONSUMER PRICES ROSE 11 IN THE MONTH TO MIDJANUARY AND WERE UP 44 FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID THE FIGURES CONFIRMED PRELIMINARY DATA BASED ON THE REGION'S FOUR LARGEST STATES AS WAS THE CASE WITH THE PRELIMINARY DATA THE STATISTICS OFFICE SAID THE ONEPERCENTAGEPOINT INCREASE IN THE COUNTRY'S VALUEADDED TAX JAN 1 ADDED A HALFPERCENTAGE POINT TO THE INFLATION RATE DECEMBER'S YEARTOYEAR INFLATION RATE WAS 37 THE STATISTICS OFFICE'S CONSUMER PRICE INDEX STOOD AT 1181 BASED ON 1985 PRICES BEING EQUAL TO 100 UP FROM 1168 IN MIDDECEMBER 9302160121 930216 HONG KONG'S BUSINESS OUTLOOK HONG KONG HONG KONG MANUFACTURERS FORECAST WORSE BUSINESS CONDITIONS AND A DROP IN CAPACITYUTILIZATION RATES IN THE CURRENT QUARTER COMPARED WITH THE FINAL THREE MONTHS OF 1992 A GOVERNMENT SURVEY FOUND THE CENSUS AND STATISTICS BUREAU'S SURVEY SAID HOWEVER THAT BEARISHNESS ABOUT THE FIRST QUARTER LARGELY REFLECTS SEASONAL FACTORS PARTICULARLY LAST MONTH'S LUNAR NEW YEAR CELEBRATION IT SAID LOCAL PRICE COMPETITION REMAINED THE MOST WORRYING ELEMENT OF DOING BUSINESS IN THE COLONY IN RECENT QUARTERS BUT ON THE POSITIVE SIDE IT FOUND IMPROVEMENT IN HIGHWAGE AND MATERIALPRICE PROBLEMS IN THE PREVIOUS QUARTER COMPARED WITH THE THIRD QUARTER THE GOVERNMENT ALSO SAID ITS SURVEY SHOWED EXPECTATIONS THAT THE PROBLEMS WILL BE ALLEVIATED FURTHER IN THIS QUARTER 9302160120 930216 PA BERGNER FILES REORGANIZATION PLAN THAT GIVES SECURED CREDITORS 60 STAKE BY CHRISTINE DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MILWAUKEE PA BERGNER & CO WHOSE SUBSTANTIAL DEBT AND SLUGGISH SALES SENT IT INTO BANKRUPTCYLAW PROCEEDINGS IN 1991 FILED A REORGANIZATION PLAN THAT WOULD GIVE SECURED CREDITORS A 60 STAKE THE PLAN FILED IN US BANKRUPTCY COURT IN MILWAUKEE WOULD LEAVE THE RETAILER'S SWISS PARENT MAUS FRERES SA WITH A CONTROLLING STAKE AND THE RIGHT TO ELECT A MAJORITY OF BERGNER'S DIRECTORS BERGNER IS ONE OF THE MIDWEST'S LARGEST DEPARTMENT STORE OPERATORS WITH 62 CARSON PIRIE SCOTT BERGNER'S AND BOSTON STORES TROUBLE STARTED FOR BERGNER IN 1989 WHEN IT TOOK ON 750 MILLION IN DEBT TO ACQUIRE CARSON PIRIE SCOTT & CO SEVERAL DISAPPOINTMENTS FOLLOWED INCLUDING THE LIQUIDATING OF CARSON'S UNPROFITABLE CATALOG OPERATION FOR MUCH LESS THAN EXPECTED ALSO CARSON'S SALES SUFFERED FROM FIERCE COMPETITION FROM CHICAGO'S BIGNAME RETAILERS AND WEAK CONSUMER DEMAND IN AUGUST 1991 BERGNER FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION AFTER FAILING TO RESTRUCTURE ITS 900 MILLION IN BANK DEBT UNDER ITS REORGANIZATION PLAN THE RETAILER WOULD EMERGE WITH ABOUT 216 MILLION IN DEBT UNDER THE REORGANIZATION PLAN BERGNER WOULD ISSUE 10 MILLION SHARES SIX MILLION WOULD GO TO SECURED CREDITORS WITH CLAIMS TOTALING 287 MILLION THE CREDITORS ALSO WOULD GET CASH AND OTHER ASSETS FOR A COMBINED HOLDING VALUED AT 128 MILLION THE REMAINING FOUR MILLION SHARES WOULD GO TO MAUS FRERES A HUGE EUROPEAN RETAIL CONGLOMERATE AND TO AN ASYETUNNAMED US COINVESTOR IN EXCHANGE BOTH PARTIES WOULD FUNNEL A COMBINED 50 MILLION INTO BERGNER IN ADDITION BERGNER WOULD PAY 25 MILLION TO ITS UNSECURED CREDITORS WHICH INCLUDE ITS TRADE VENDORS WHO HAVE 129 MILLION IN CLAIMS THE PLAN IS SUBJECT TO MAUS FINDING A SUITABLE US PARTNER FOR ITS INVESTMENT AS WELL AS TO CREDITOR APPROVAL AND BANKRUPTCY COURT CONFIRMATION AMONG OTHER THINGS BECAUSE BERGNER IS PRIVATELY OWNED IT DOESN'T DISCLOSE ITS RESULTS STANTON J BLUESTONE ITS PRESIDENT AND ACTING CHIEF EXECUTIVE OFFICER SAID ONLY THAT BERGNER GENERALLY THOUGHT TO BE POSTING LOSSES HAS MOSTLY OUTPERFORMED ITS OPERATING PROFIT PLAN WHILE UNDER CHAPTER 11 PROTECTION DURING THAT TIME THE COMPANY CLOSED SIX UNPROFITABLE STORES AND ELIMINATED SOME NONRETAILING OPERATIONS AMONG OTHER THINGS ANALYSTS SAY BERGNER IS LIKELY TO CONTINUE TO CLOSE OR SELL MORE STORES 9302160119 930216 PICCADILLY BIG BOARD LISTING BATON ROUGE LA PICCADILLY CAFETERIAS INC SAID IT FILED AN APPLICATION TO LIST ITS COMMON STOCK ON THE NEW YORK STOCK EXCHANGE PICCADILLY SHARES HAVE BEEN TRADED OVERTHECOUNTER SINCE 1979 THE RESTAURANT CHAIN SAID IT EXPECTS TO MAKE THE SWITCH IN EARLY MARCH 9302160118 930216 MARKETING & MEDIA US APPROVES LIBERTY MEDIA PURCHASE OF STAKE IN HOME SHOPPING NETWORK BY MARK ROBICHAUX AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE JUSTICE DEPARTMENT APPROVED LIBERTY MEDIA INC'S PURCHASE OF A 75 STAKE IN HOME SHOPPING NETWORK INC BRINGING LIBERTY AND ITS PARTNERS ONE STEP CLOSER TO THE POSSIBLE CREATION OF A POWERFUL NEW SHOPPING AND ENTERTAINMENT GIANT ALONG WITH FORMER FOX INC CHAIRMAN BARRY DILLER AND CABLE OPERATOR COMCAST CORP LIBERTY ALREADY OWNS A CONTROLLING INTEREST IN THE RIVAL SHOPPING CHANNEL QVC NETWORK INC LIBERTY WHICH ALSO OFFERED TO BUY THE HOME SHOPPING SHARES IT DOESN'T ALREADY OWN SAID IT HAS NO PLAN AT PRESENT TO MERGE QVC AND HOME SHOPPING BUT INDUSTRY EXECUTIVES AND WALL STREET ANALYSTS EXPECT THE TWO WILL BE MERGED EVENTUALLY FORMING THE NUCLEUS OF AN ENTERTAINMENT POWERHOUSE THAT COULD AMONG OTHER THINGS LAUNCH A POSSIBLE FIFTH BROADCAST NETWORK A COMBINED QVC AND HOME SHOPPING WOULD CREATE A RETAILING GIANT THAT COULD GENERATE REVENUE OF MORE THAN 2 BILLION A YEAR AND COULD SAVE THE MERGED ENTITY SOME 40 MILLION IN COSTS ANALYSTS SAY LIBERTY ANNOUNCED THE 160 MILLION HOME SHOPPING TRANSACTION IN DECEMBER SPARKING A JUSTICE DEPARTMENT REVIEW OF ANTITRUST QUESTIONS IN ANNOUNCING THE JUSTICE DEPARTMENT APPROVAL LIBERTY DISCLOSED FOR THE FIRST TIME IT HAS AN OPTION TO BUY FOR 2 MILLION A 60 CONTROLLING STAKE IN SILVER KING COMMUNICATIONS CORP A COMPANY RECENTLY SPUN OFF BY HOME SHOPPING THAT OWNS A GROUP OF 12 UHF STATIONS LOCATED IN MAJOR MARKETS THOSE STATIONS MIGHT FORM THE BACKBONE OF A TV AFFILIATE GROUP FOR A NEW BROADCAST NETWORK ANALYSTS SAY ACCORDING TO A RECENT REPORT BY MEDIA INVESTMENT FIRM PAUL KAGAN ASSOCIATES INC THE STATIONS REACH ABOUT 28 MILLION HOMES AND COULD BE USED AS A BASE FOR AN ENTERTAINMENT NETWORK NOT UNLIKE THE NETWORK DILLER BUILT OUT OF FOXOWNED AND OPERATED TV STATIONS MR DILLER BECAME CHAIRMAN AND CHIEF EXECUTIVE OF QVC IN DECEMBER AGREEING TO INVEST 25 MILLION AFTER SHEPHERDING THE CREATION OF THE SUCCESSFUL FOX FOURTH BROADCAST NETWORK HE RESIGNED HIS POST AT FOX LAST YEAR TO PURSUE OTHER OPPORTUNITIES MR DILLER DECLINED TO COMMENT YESTERDAY BUT THE EXECUTIVE HAS INDICATED FROM THE START THAT HE HAS BIGGER PLANS AND IS PARTICULARLY INTRIGUED BY THE INTERACTIVE TECHNOLOGY OF QVC INCLUDING ITS ADVANCED PAYPERVIEW ORDERING TECHNOLOGY THIS WILL BE A VEHICLE FOR BUILDING A MULTIMEDIA COMPANY MR DILLER SAID IN AN INTERVIEW IN DECEMBER AND PEOPLE FAMILIAR WITH HIS PLANS SAY A CENTRAL GOAL IS THE CREATION OF SOME KIND OF NEW PROGRAMMING NETWORK THIS MAY BE THE MOST SIGNIFICANT TRANSACTION IN THE HISTORY OF OUR COMPANY SAID PETER BARTON PRESIDENT AND CHIEF EXECUTIVE OF LIBERTY LIBERTY ACQUIRED ITS SHARES FROM RMS LP WHICH IS OWNED BY ROY SPEER THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HOME SHOPPING ANALYSTS SAY A MERGED QVC AND HOME SHOPPING COULD EASILY EXPAND ITS PROGRAMMING AND POSSIBLY JOIN FORCES WITH A MOVIE COMPANY YOU COULD AIR HOMESHOPPING BY DAY AND MOVIES BY NIGHT SAID PETER SIRIS AN ANALYST AT UBS SECURITIES INC HOME SHOPPING HAS DEVELOPED A STRONG PAYPERVIEW ORDERING TECHNOLOGY FOR MOVIES OF COURSE THERE ARE SIGNIFICANT HURDLES TO ESTABLISHING A FIFTH BROADCAST NETWORK MANY BROADCAST AND ADVERTISING INDUSTRY EXECUTIVES SAY THERE ISN'T ROOM FOR FIVE NETWORKS AND MAYBE NOT EVEN FOR FOUR IN THE CURRENT ADVERTISING ENVIRONMENT AND THE OWNERSHIP OF TV STATIONS MIGHT BE A STUMBLING BLOCK TO A MERGER BETWEEN QVC AND HOME SHOPPING LIBERTY HAS INTERESTS IN LOCAL CABLE COMPANIES THAT REACH 29 MILLION SUBSCRIBERS UNDER FEDERAL COMMUNICATIONS COMMISSION LAW JOINT OWNERSHIP OF CABLE SYSTEMS AND BROADCAST PROPERTIES IN THE SAME MARKET IS PROHIBITED UNDER LIBERTY'S OFFER FOR THE REMAINING STOCK HOME SHOPPING SHAREHOLDERS OTHER THAN LIBERTY WOULD RECEIVE A PACKAGE OF CASH AND SECURITIES VALUED AT 9 FOR EACH SHARE 5 IN CASH 1 IN LIBERTY STOCK AND 3 IN STOCK OF A NEWLY CREATED SUBSIDIARY THAT SUBSIDIARY WOULD DEVELOP THE PHONE TECHNOLOGY OF HOME SHOPPING'S NATIONAL CALL CENTER FURTHERING LIBERTY'S EFFORT TO BUILD A NATIONAL PAYPERVIEW ORDERING SERVICE 9302160117 930216 WHO'S NEWS PLACER DOME NAMES FRANKLIN AS CHAIRMAN TO SUCCEED FELL IN MAY VANCOUVER BRITISH COLUMBIA ROBERT M FRANKLIN 46 YEARS OLD WAS NAMED CHAIRMAN OF PLACER DOME A GOLD MINING CONCERN SUCCEEDING FRASER T FELL 64 WHO WILL RETIRE AFTER THE COMPANY'S ANNUAL MEETING SCHEDULED FOR MAY 6 MR FELL WILL BECOME CHAIRMAN EMERITUS OF PLACER DOME MR FRANKLIN WHO HAS BEEN A DIRECTOR OF PLACER DOME SINCE THE COMPANY WAS FORMED IN 1987 IS PRESIDENT OF SIGNALTA CAPITAL CORP A TORONTO INVESTMENT COMPANY PLACER DOME ALSO SAID THAT TWO OF ITS CURRENT DIRECTORS WON'T BE STANDING FOR REELECTION AT THE ANNUAL MEETING THESE ARE ANTHONY PETRINA WHO STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER LAST YEAR AND PETER CROSSGROVE WHO WAS VICE CHAIRMAN AND ACTING CHIEF EXECUTIVE FOLLOWING MR PETRINA'S DEPARTURE THE COMPANY IN NOVEMBER APPOINTED AS ITS NEW PRESIDENT AND CHIEF EXECUTIVE JOHN WILLSON FORMERLY PRESIDENT OF PEGASUS GOLD INC OF SPOKANE WASH 9302160116 930216 ECONOMY USBUILT TRUCKS STILL ON HEALTHY ROLL BUT BIG THREE CAR SALES FELL IN PERIOD BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US CONSUMERS CONTINUED TO SNAP UP DOMESTIC LIGHT TRUCKS AND VANS IN EARLY FEBRUARY BUT SALES OF DOMESTIC PASSENGER CARS MADE BY DETROIT'S BIG THREE WERE MIXED EARLY FEBRUARY DOMESTIC TRUCK SALES REACHED A SEASONALLY ADJUSTED ANNUAL SALES PACE OF 49 MILLION UP FROM A 42 MILLION SELLING PACE IN THE PREVIOUS 10DAY PERIOD AND A 41 MILLION PACE A YEAR EARLIER TRUCK SALES JUMPED 206 TO 114749 VEHICLES UP FROM 84582 VEHICLES PURCHASED A YEAR AGO HOWEVER COMBINED SALES OF DOMESTIC CARS SOLD BY GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP FELL 53 IN THE FEB 110 PERIOD BECAUSE OF A DECLINE IN SALES OF GM'S USBUILT CARS COMBINED SALES OF BIG THREE CARS AND TRUCKS ROSE 42 DURING EARLY FEBRUARY FROM A YEAR EARLIER THE 10 MAJOR US AUTO MAKERS REPORTED INCOMPLETE RESULTS FOR PASSENGER CAR SALES DURING THE FEB 110 PERIOD HONDA MOTOR CO MITSUBISHI MOTORS CORP AND FUJI HEAVY INDUSTRIES LTD'S SUBARU OF AMERICA DIDN'T RELEASE EARLY FEBRUARY CAR SALES YESTERDAY BECAUSE OF THE PRESIDENTS DAY HOLIDAY TRUCK SALES FIGURES WERE COMPLETE BECAUSE HONDA MITSUBISHI AND SUBARU DON'T SELL USBUILT LIGHT TRUCKS SALES FIGURES ARE ADJUSTED TO REFLECT NINE SELLING DAYS IN THE LATEST PERIOD COMPARED WITH EIGHT SELLING DAYS A YEAR EARLIER GM FARED THE WORST AMONG DETROIT'S BIG THREE AUTO MAKERS ITS DOMESTIC CAR SALES SKIDDED 223 IN THE FEB 110 PERIOD STRONG SALES OF SATURN SMALL CARS WEREN'T ENOUGH TO OFFSET CADILLAC'S 448 SALES SLIDE PONTIAC'S 33 PLUNGE AND BUICK'S 264 DROP GM'S DOMESTIC TRUCK SALES CLIMBED 61 IN THE LATEST 10DAY PERIOD FORD REPORTED BRISK SALES OF BOTH CARS AND TRUCKS IN THE PERIOD FORD'S DOMESTIC CAR SALES SURGED 164 WHILE SALES OF ITS LIGHT TRUCKS JUMPED 191 AMONG THE JAPANESE AUTO MAKERS REPORTING EARLY FEBRUARY SALES TOYOTA MOTOR CORP'S DOMESTIC CAR SALES ROSE 101 SALES OF USMADE NISSAN MOTOR CO CARS SURGED 962 AND PURCHASES OF USMADE MAZDA MOTOR CO CARS MORE THAN DOUBLED CHRYSLER'S DOMESTIC CAR SALES CLIMBED 247 AND ITS LIGHT TRUCK SALES ROSE 40 IN EARLY FEBRUARY ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE PUBLICATION CHRYSLER DOESN'T REPORT 10DAY VEHICLE SALES 9302160115 930216 FUNDS ARE TURNING UP GOOD PROSPECTS FOR INVESTMENTS IN RECOVERING POLAND BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN ROSEMARY SAGAR WENT TO POLAND LAST YEAR THE VICE PRESIDENT FROM GENERAL ELECTRIC CO'S INHOUSE INVESTMENTS UNIT EXPECTED A NATION BESIEGED BY STRIKES AND SHORTAGES SHE FOUND INSTEAD REASON TO INVEST THE PRIVATE SECTOR IS BOOMING AND ENTREPRENEURS IMPRESSED MS SAGAR WITH THEIR SAVVY THE PRIVATE SECTOR IN POLAND HAS REACHED CRITICAL MASS SAID MS SAGAR OF THE 43 BILLION GE INVESTMENTS WHICH MANAGES THE COMPANY'S 27 BILLION PENSION FUND AND OTHER ASSETS REASSURED BY VISITS TO POLAND GE'S AND SIX OTHER PENSION FUNDS AND MONEY MANAGERS TOOK A SMALL BUT SIGNIFICANT STEP INTO EASTERN EUROPE IN NOVEMBER BY INVESTING IN THE POLISH PRIVATE EQUITY FUND TO BE SURE POLAND IS FAR FROM A SURE BET INFLATION IS RUNNING AT A 43 ANNUAL RATE WHICH COULD LEAD TO DEVALUATION OF THE CURRENCY AND PROFITS PRIVATIZATION IS SLOWGOING UNEMPLOYMENT IS 135 AND WILL PROBABLY WORSEN AS STATE COMPANIES NOW PRIVATIZING STREAMLINE OR GO BANKRUPT ADD A POSSIBLE INFLUX OF REFUGEES FROM WARTORN NEIGHBORS AND THE BUSINESS CLIMATE LOOKS BLEAK BUT POTENTIAL GAINS JUSTIFY THE RISKS THE EQUITY FUND'S INVESTORS SAY THEY SEE THEIR INVESTMENT AS VENTURE CAPITAL IN A HUGE EMERGING MARKET LARGELY OVERLOOKED BY US FIRMS THE POLISH MARKET MAY BE A DECADE AWAY FROM PROSPERITY BUT EQUITY FUND MEMBERS BELIEVE THAT BY INVESTING NOW THEY COULD REAP SUBSTANTIAL RETURNS THE PENSION FUNDS REALIZE THEY CAN'T STAY OUT OF EASTERN EUROPE AND THE SOONER THEY GET IN THE BETTER SAYS ROBERT FARIS PRESIDENT AND CHIEF EXECUTIVE OF ENTERPRISE INVESTORS LP WHICH MANAGES THE EQUITY FUND AND ITS SISTER COMPANY THE POLISHAMERICAN ENTERPRISE FUND THE PENSION FUNDS PUT UP 50 MILLION OF THE EQUITY FUND'S 151 MILLION THE USFUNDED POLISHAMERICAN ENTERPRISE FUND WHICH SPAWNED THE EQUITY FUND AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PROVIDED THE REMAINDER CONGRESS ESTABLISHED THE POLISHAMERICAN ENTERPRISE FUND IN 1990 TO STIMULATE DEVELOPMENT OF POLISH SMALL AND MIDSIZE BUSINESSES THE FUND DREW ON ITS 240 MILLION SEED MONEY TO DIRECTLY INVEST IN BUSINESSES AND PROVIDE CREDIT THROUGH LOCAL BANKS THE ENTERPRISE FUND NOW HAS A PORTFOLIO OF 30 FIRMS WITH MORE THAN 100 MILLION OF CLOSED INVESTMENTS AND LOANS THE ENTERPRISE FUND HOPED ULTIMATELY TO ATTRACT PRIVATE INVESTMENT BUT IN 1990 US COMPANIES SHIED AWAY FROM THE STRICKEN POLISH ECONOMY LAST YEAR WITH MORE FOREIGNERS INVESTING IN A STRONGER POLAND THE ENTERPRISE FUND ANNOUNCED THE CREATION OF THE PRIVATE EQUITY FUND AT THE SAME TIME REPRESENTATIVES OF PENSION FUNDS AFTER VISITS TO POLAND TURNED TO THE ENTERPRISE FUND FOR COUNSEL THUS THE PRIVATE EQUITY FUND WAS CREATED WITH THE PENSION FUNDS THE ENTERPRISE FUND AND THE EUROPEAN BANK AS ITS SHAREHOLDERS WE WANT TO HAVE A PRESENCE IN THESE MARKETS BUT WE LACK THE EXPERIENCE SAID DOBRINKA CIDROFKAZGAN OF EMERGING MARKETS INVESTORS CORP EMERGING MARKETS MANAGEMENT WHICH MANAGES 1 BILLION MOSTLY IN US PENSION FUND MONEY SO IF WE GET ON BOARD WITH THE EQUITY FUND WE'LL EVENTUALLY COINVEST WITH IT THE EQUITY FUND WILL MIRROR THE ENTERPRISE FUND INVESTING IN NEW COMPANIES AND TO A LESSER EXTENT BOLSTERING THE ENTERPRISE FUND'S PORTFOLIO MR FARIS SAYS THE EQUITY FUND WILL SEEK OUT COMPANIES LIKE WARSAW'S SECURA AN ENTERPRISE FUND INVESTMENT A MAKER OF INDUSTRIAL PROTECTIVE GEAR AND FILTERS SECURA'S REVENUE TRIPLED TO 15 MILLION IN 1992 FROM 500000 THE PREVIOUS YEAR NINE YEARS AGO SECURA'S FOUNDER JACEK BODASINSKI RISKED ARREST BY SQUATTING AN ABANDONED BUILDING UNTIL HE WAS PERMITTED TO SET UP SHOP THERE NOW WITH 60 EMPLOYEES AND A US PARTNER SECURA USED THE 25 MILLION FUND INVESTMENT TO BEGIN EXPORTING TO JAPAN RUSSIA AND ENGLAND SIX MAJOR PENSION FUNDS AND A MONEY MANAGER HAVE EACH INVESTED A MODEST 5 MILLION TO 10 MILLION IN THE EQUITY FUND WHICH CLOSED RECENTLY SOME LIKE GE INVESTMENTS HAVE INTERNATIONAL INVESTMENT PROGRAMS WHILE OTHERS SUCH AS EMERGING MARKETS SPECIALIZE IN DEVELOPING MARKETS NONE EXPECT RETURNS ON THEIR INVESTMENTS FOR EIGHT TO 10 YEARS UNTIL IT AWAKENED FROM RECESSION LAST YEAR POLAND HAD BEEN THE BASKET CASE OF EASTERN EUROPE FOREIGN INVESTORS EXPLORED HUNGARY AND CZECHOSLOVAKIA BUT VIRTUALLY IGNORED POLAND WHICH WAS MIRED IN HYPERINFLATION AND DEBT IN 1992 THE PAINFUL SHOCK THERAPY FREEMARKET REFORMS THAT HAD ROCKED THE ECONOMY FINALLY BEGAN TO BEAR FRUIT INFLATION FELL TO 43 FROM 70 PRODUCTION REVERSED A LONG SLIDE AND ACTUALLY INCREASED AND POLAND EVEN POSTED A 500 MILLION TRADE SURPLUS HOWEVER SHAKY THE GOVERNMENT WAS IT UNDERTOOK THE REFORMS COLD TURKEY SAID MS CIDROFKAZGAN NOW THE CHANGES ARE IRREVERSIBLE MOST CREDIT THE PRIVATE SECTOR WHICH ACCOUNTS FOR MORE THAN HALF THE GROSS DOMESTIC PRODUCT FOR DRIVING THE ECONOMIC TRANSFORMATION IN A MARKET WHERE SHORTAGES ARE COMMON AND LAWS EVERCHANGING AN OWNER'S WILL AND INGENUITY ARE OFTEN ALL THAT KEEP THE COMPANY AFLOAT ENTERPRISE INVESTORS RELIES ON IMPRESSIONS OF THE ENTREPRENEURS WHO RUN COMPANIES TO SOUND OUT RELIABLE INVESTMENTS WE'RE TRYING TO FIND THE PEOPLE WHO REALLY WENT OUT ON A LIMB TO START BUSINESS SAID MR FARIS WE WANT PEOPLE WHO EXCITE US THOSE IMPRESSIONS ARE GROUNDED IN DETAILED EVALUATIONS LOCAL ENTREPRENEURS PITCH THEIR IDEAS AND OUTLINE MANUFACTURING DISTRIBUTION AND FINANCIAL SYSTEMS TO ENTERPRISE INVESTORS' WARSAW STAFF OF 13 INVESTMENT OFFICERS INCLUDING VETERAN US INVESTMENT BANKERS A LOT OF FACTORS WE CAN HELP CHANGE BUT WHAT CAN'T BE CHANGED IS WHETHER YOU CAN SELL THE PRODUCT MR FARIS SAID STAFF MEMBERS WORK WITH AN ENTREPRENEUR TO DEVELOP A BUSINESS PLAN AND THEN INVESTIGATE THE COMPANY THEY VISIT THE FIRM'S PLANT AND TALK TO INDUSTRY EXPERTS COMPETITORS REFERENCES CUSTOMERS AND EMPLOYEES AN EXPORT ORIENTATION IS A BIG PLUS FOR A COMPANY IF ALL GOES WELL THE STAFF RECOMMENDS INVESTMENT COMPETITION SO FAR HAS BEEN FIERCE FOR ENTERPRISE FUND MONIES WITH 20 TO 25 APPLICANTS VYING FOR EACH SLOT DESPITE SAFEGUARDS INVESTMENTS SOMETIMES GO AWRY A BANKABLE ENTREPRENEUR COULD TURN OUT TO BE A SMOOTH WHEELERDEALER THE ENTERPRISE FUND INVESTED 11 MILLION IN A MAKER OF CIRCUIT BOARDS RUN BY A SEEMINGLY SHREWD BUSINESSMAN TO HELP WITH EXPANSION BUT THE OWNER DIDN'T HEED THE FUND'S ADVICE EXPANSION PLANS WEREN'T IMPLEMENTED AND NOW THE COMPANY IS RUNNING OUT OF MONEY STILL UNSURE ABOUT THE FUTURE POLISH COMPANIES AT TIMES OPT FOR QUICK PROFIT OVER LONGTERM GAINS THE ENTERPRISE FUND SET UP A JOINT VENTURE APPLEPROCESSING COMPANY WITH A FARMERS' COOP TO EXPORT THE CROP THE FARMERS AGREED TO SELL APPLES TO THE VENTURE WHICH THEN PACKED AND SHIPPED THE PRODUCE AFTER THE PROJECT BEGAN HOWEVER MANY FARMERS SOLD DIRECTLY TO OTHER WHOLESALERS FOR MORE MONEY AN APPLE GLUT BROUGHT THE FARMERS BACK BUT THE VENTURE IS NOW STRUGGLING I LOOK AT THIS AS A VENTURE CAPITAL BUSINESS NO INVESTMENT WILL BE CLEAR SAILING MR FARIS SAID WE'LL BE HAPPY IF 10 OR 20 YEARS FROM NOW THERE WILL BE VIABLE BUSINESSES WE HELPED FINANCE 9302160114 930216 ABREAST OF THE MARKET STRONG EARNINGS COULD EASE FEARS ABOUT STOCK PRICES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A STRONG BURST OF FOURTHQUARTER PROFIT REPORTS IS PROMPTING ANALYSTS TO INCREASE THEIR ESTIMATES FOR 1993 CORPORATE EARNINGS A MOVE THAT MAY EASE FEARS THAT STOCK PRICES ARE TOO HIGH ACCORDING TO A SURVEY OF NEARLY 700 COMPANIES BY ZACKS INVESTMENT RESEARCH CORPORATE EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES OR GAINS JUMPED 181 IN THE FOURTH QUARTER FROM A YEAR EARLIER THE STRONGEST GROWTH IN ANY QUARTER SINCE THE FIRST QUARTER OF 1989 A SEPARATE WALL STREET JOURNAL SURVEY OF 619 COMPANIES SHOWED THAT CORPORATE AFTERTAX EARNINGS FROM CONTINUING OPERATIONS BUT INCLUDING SPECIAL CHARGES OR GAINS ROSE 57 COMPARED WITH A 27 GAIN FOR THE THIRD QUARTER THE RESULTS HAVE TOUCHED OFF A SCRAMBLE AMONG ANALYSTS TO REVISE THEIR 1993 EARNINGS UPWARD BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS SAYS 40 OF ANALYSTS' RECENT REVISIONS WERE UPWARD COMPARED WITH 32 BEFORE THE FOURTHQUARTER REPORTING SEASON BEGAN ANALYSTS SAW ENOUGH POSITIVE ELEMENTS IN THE FOURTH QUARTER TO BECOME CONSIDERABLY MORE OPTIMISTIC ABOUT EARNINGS FOR 1993 AND THAT'S VERY POSITIVE FOR THE STOCK MARKET MR ZACKS SAYS EARNINGS WILL COME IN STRONG ENOUGH TO SUPPORT HIGHER STOCK PRICES ROBUST EARNINGS ARE VITAL TO FURTHER GAINS IN THE STOCK MARKET LOW INTEREST RATES HAVE DRIVEN STOCK PRICES HIGHER FOR SOME TIME BUT RATES AREN'T LIKELY TO FALL MUCH MORE AND MAY EVEN INCH HIGHER IN COMING MONTHS STOCK PRICES ARE ALREADY HIGH BY MANY HISTORICAL MEASURES SUCH AS DIVIDEND YIELDS OR PRICEEARNINGS RATIOS PUTTING A HEAVY BURDEN ON BETTER EARNINGS TO JUSTIFY THE MARKET'S LOFTY LEVEL MR ZACKS TAKES PARTICULAR ENCOURAGEMENT FROM THE INCREASING NUMBER OF POSITIVE EARNINGS SURPRISES FOUND IN THE FOURTHQUARTER PROFITS REPORTED BY THE NEARLY 700 COMPANIES IN THE DOW JONES EQUITY MARKET INDEX NEGATIVE EARNINGS SURPRISES USUALLY OUTNUMBER POSITIVE ONES BECAUSE ANALYSTS TEND TO BE TOO OPTIMISTIC IN PREDICTING CORPORATE PROFITS THAT WAS TRUE IN THE FOURTH QUARTER BUT THE MARGIN OF NEGATIVE SURPRISES NARROWED SLIGHTLY IN THE FOURTH QUARTER ANALYSTS SAID THE STRONG FOURTHQUARTER EARNINGS REFLECT IMPROVEMENTS IN COMPANIES' PRODUCTIVITY MANY BUSINESSES ARE SUCCEEDING IN THEIR EFFORTS TO HOLD DOWN COSTS AND IMPROVE PROFIT MARGINS BUT WHAT'S GOOD FOR THE CORPORATE BOTTOM LINE AND FOR A COMPANY'S SHARE PRICE HASN'T BEEN GOOD FOR WORKERS MOST OF THE SAVINGS HAVE COME FROM REDUCTIONS IN LABOR COSTS THROUGH LAYOFFS AND LIMITED HIRING MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES SAYS THAT PRODUCTIVITY MUST CONTINUE TO IMPROVE FOR THE ECONOMIC RECOVERY TO BE SUSTAINED AND FOR STOCK PRICES TO CLIMB HIGHER MY FEELING IS THAT THERE IS SOMETHING UNIQUE GOING ON MR LEVY SAYS THE RECENT GAINS IN PRODUCTIVITY WILL CONTINUE BECAUSE A LOT OF BUSINESSES HAVE CHANGED THEIR PRODUCTION PROCESSES MR LEVY NOTES THAT A PICKUP IN CONSUMER DEMAND AIDED PROFIT GROWTH IN THE FOURTH QUARTER AND THAT CONSUMPTION IS EXPECTED TO GROW FURTHER THOUGH AT A SLOWER PACE ALL THE FUNDAMENTALS ARE IN PLACE FOR IMPROVEMENT IN EARNINGS AND STOCK PRICES MR LEVY SAYS BUT THAT IMPROVEMENT MAY NOT PROCEED AT THE QUICK PACE IT DID IN THE FOURTH QUARTER STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO BELIEVES THE RATE OF GROWTH OF CORPORATE EARNINGS HAS PEAKED FOR THE CURRENT ECONOMIC CYCLE WHILE HE EXPECTS THE ECONOMY TO CONTINUE EXPANDING HE WARNS THAT INVESTORS MAY BE A LITTLE DISAPPOINTED BY CORPORATE PROFITS COMPARED WITH THE PACE OF GAINS IN 1992 THAT COULD CONTRIBUTE TO MODEST DECLINES IN STOCK PRICES IN THE NEAR TERM HE SAYS MANY COMPANIES HAVE COMPLETED THEIR RESTRUCTURINGS SO THE OPPORTUNITY FOR POSITIVE EARNINGS SURPRISES HAS DIMINISHED MR RESNICK SAYS IT'S NOT A BLEAK PICTURE BUT WE WON'T SEE AS BROAD A PROFILE OF EARNINGS SURPRISES AS WE GOT BEFORE AS A RESULT MR RESNICK PREDICTS A SLIGHT DOWNTURN IN STOCK PRICES IN THE SECOND QUARTER BEFORE THE UPWARD TREND RESUMES AS ECONOMIC GROWTH CONTINUES TO CARRY CORPORATE PROFITS HIGHER ALBEIT AT A SLIGHTLY SLOWER RATE HE ADVISES INVESTORS TO SEEK OUT THE STOCKS OF COMPANIES THAT WILL BENEFIT FROM THEIR RESTRUCTURINGS SUCH AS FORD ALLIEDSIGNAL AND ROCKWELL FOR THE PATIENT INVESTOR MR RESNICK RECOMMENDS EASING INTO THE STOCKS OF COMPANIES THAT ARE AMONG THE LAST TO BENEFIT FROM AN ECONOMIC RECOVERY SUCH AS CONSTRUCTION ENGINEERING AND MACHINERY CONCERNS HE LIKES CATERPILLAR WHICH HE SAYS ALSO WILL BENEFIT FROM LATIN AMERICAN EXPORTS AND PRESIDENT CLINTON'S INFRASTRUCTURE RENEWAL PLANS BUT MR RESNICK CAUTIONS TO BENEFIT FROM THE LAST CYCLICALS TO IGNITE YOU HAVE TO BE AWFULLY PATIENT AND A LOT CAN HAPPEN BEFORE YOU GET THERE EARNINGS NEED TO IMPROVE SIGNIFICANTLY IN ORDER TO JUSTIFY CURRENT STOCK PRICES HE SAYS HE IS KEEPING AN EYE ON A VARIETY OF INDICATORS INCLUDING INVESTOR SENTIMENT INSIDER TRANSACTIONS AND MONETARY CONDITIONS FOR A SELL SIGNAL BUT THE ALARM HASN'T BEEN RAISED YET WE'RE LOOKING FOR SIGNS OF TROUBLE BUT HAVEN'T SEEN OVERT SIGNS THAT WOULD PULL US TO A DEFENSIVE STANCE MR MOORE SAYS WE STILL NEED TO SEE MORE THINGS FALL INTO PLACE AMONG KEY INDICATORS MR MOORE WATCHES THE MONTHLY SURVEY OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT THE SURVEY PROVIDES DATA ON NEW ORDERS PRODUCTION EMPLOYMENT AND INVENTORIES AND OFTEN IS AN EARLY SIGNAL OF WHERE THE INDUSTRIAL SIDE OF THE ECONOMY IS HEADED MR MOORE SAYS IT ALSO OFTEN PROVIDES A WINDOW ON EARNINGS PROSPECTS AND THEREFORE STOCK PRICE TRENDS IF THE PURCHASING MANAGERS' REPORT GOES THE WRONG WAY YOU CAN BET EARNINGS WILL BE DISAPPOINTING MR MOORE SAYS STOCK PRICES TUMBLED AS INVESTORS TURNED SKITTISH AHEAD OF PRESIDENT CLINTON'S ADDRESS THIS WEEK OUTLINING HIS ECONOMIC PACKAGE THE DOW JONES INDUSTRIAL AVERAGE PLUNGED 3026 POINTS TO 339243 STANDARD & POOR'S 500STOCK INDEX FELL 308 TO 44458 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 142 TO 24530 FOR THE WEEK THE DOW JONES INDUSTRIALS LOST 14 THE S&P 500 WAS DOWN 1 AND THE BIG BOARD'S COMPOSITE INDEX SLIPPED 09 ON FRIDAY DECLINING ISSUES OUTPACED ADVANCERS 1116 TO 736 TRADING ON THE BIG BOARD TOTALED 215750000 SHARES DOWN FROM 252670000 THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 024 POINT TO 9406 ANALYSTS SAID INVESTORS WERE CONCERNED THAT MR CLINTON MAY PROPOSE TOO LARGE A SPENDING PACKAGE AND FAIL TO FOCUS ENOUGH ON TRIMMING THE BUDGET DEFICIT HEALTHCARE STOCKS WERE BATTERED FRIDAY ON FEARS OF GOVERNMENTDIRECTED REFORMS WITH HEALTH MAINTENANCE ORGANIZATIONS BEARING THE BRUNT OF THE SELLING FOUNDATION HEALTH DROPPED 5 1/2 TO 33 5/8 AND UNITED HEALTHCARE LOST 6 TO 55 7/8 UNITED AMERICAN HEALTHCARE FELL 2 TO 16 1/2 ONE HEALTHCARE STOCK MEDTRONIC AVOIDED THE SELLOFF IT SOARED 8 5/8 TO 90 7/8 AFTER THE FOOD AND DRUG ADMINISTRATION APPROVED ITS NEW CARDIAC DEVICE LATE THURSDAY THE DEFIBRILLATOR WHICH CAN BE IMPLANTED IS EXPECTED TO ACCELERATE THE COMPANY'S ALREADY DRAMATIC EARNINGS GROWTH STUDENT LOAN CORP AN ORIGINATOR AND SERVICER OF STUDENT LOANS PLUNGED 3 1/2 TO 18 5/8 GOLDMAN SACHS ELIMINATED THE STOCK FROM ITS RECOMMENDED LIST THE STUDENT LOAN SERVICE FACES A SETBACK IF THE CLINTON ADMINISTRATION REPLACES THE GUARANTEED STUDENT LOAN PROGRAM WITH A DIRECT LOAN SYSTEM THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 158 TO 41547 DECLINERS OUTPACED ADVANCERS 341 TO 234 9302160113 930216 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9302160112 930216 AMR ATTACKS IBERIA AIR FRANCE ON ISSUE OF RESERVATION SYSTEM FORT WORTH TEXAS AMERICAN AIRLINES SAID IT FILED UNFAIR COMPETITION COMPLAINTS AGAINST AIR FRANCE AND IBERIA AIR LINES OF SPAIN SA CLAIMING THAT THE TWO INTERNATIONAL CARRIERS ARE KEEPING THE AMR CORP UNIT FROM SELLING ITS SABRE COMPUTER RESERVATION SYSTEM IN FRANCE AND SPAIN IN COMPLAINTS FILED LAST WEEK WITH THE US DEPARTMENT OF TRANSPORTATION AMERICAN CLAIMS THAT THE TWO CARRIERS HAVE MADE SABRE ESSENTIALLY USELESS BY PREVENTING LOCAL FRENCH AND SPANISH AIRLINE FLIGHTS FROM BEING LISTED IN ITS RESERVATION SYSTEM WITHOUT THAT INFORMATION SABRE IS OF LITTLE VALUE TO FRENCH AND SPANISH TRAVEL AGENTS AND AMERICAN CLAIMS ITS SALES EFFORTS BOGGED DOWN IN 1992 AS A RESULT AMERICAN ASKED THE DOT TO ORDER EACH COMPUTER RESERVATION SYSTEM OPERATING IN THE US TO DENY AIR FRANCE IBERIA AND THEIR AFFILIATES THE ABILITY TO DISTRIBUTE THEIR PRODUCTS THROUGH USBASED COMPUTER RESERVATION SYSTEMS COMPUTER RESERVATION SYSTEMS ENABLE TRAVEL AGENTS TO PLOT OUT FLIGHT SCHEDULES SEEK LOW FARES AND MAKE HOTEL CAR RENTAL AND AIRPLANE RESERVATIONS THE HOST SYSTEMS CHARGE FEES FOR EACH BOOKING TRANSACTION A SPOKESMAN FOR AIR FRANCE DIDN'T RETURN CALLS SEEKING COMMENT AND IBERIA COULDN'T BE REACHED AMERICAN ALSO NAMED THE FRENCH AND SPANISH GOVERNMENTS BECAUSE THEY OWN AIR FRANCE AND IBERIA AMERICAN ALREADY HAS SIMILAR COMPLAINTS AGAINST THE TWO AIRLINES PENDING BEFORE THE EUROPEAN COMMUNITY 9302160111 930216 PENA FAVORS PANEL TO STUDY AIRLINE AEROSPACE ISSUES BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TRANSPORTATION SECRETARY FEDERICO PENA AND CONGRESSIONAL LEADERS PLAN TO SEEK EARLY ACTION ON LEGISLATION TO CREATE A 15MEMBER COMMISSION ON THE FINANCIAL PLIGHT OF THE NATION'S AEROSPACE AND AIRLINE INDUSTRIES THE BIPARTISAN COMMISSION'S CHARGE WILL BE TO COME UP WITH RECOMMENDATIONS TO IMPROVE THE VIABILITY OF US AIRLINES AND AIRCRAFT MANUFACTURERS AT HOME AND STRENGTHEN THEIR COMPETITIVENESS OVERSEAS ACCORDING TO CONGRESSIONAL STAFFERS IT WILL BE AN ENLARGED VERSION OF A SEVENMEMBER PANEL THAT WAS AUTHORIZED BY CONGRESS LAST YEAR BUT NEVER ORGANIZED THE IDEA OF SUCH A COMMISSION ENDORSED BY PRESIDENT CLINTON LAST WEDNESDAY AT A TOWNHALL MEETING IN DETROIT IS SEEN AS A WAY TO PUT ASIDE PARTISAN DIFFERENCES AND CORPORATE BAD BLOOD AND TAKE UP THE PROBLEMS OF AN INDUSTRY THAT HAS LOST MORE THAN 10 BILLION SINCE 1989 MOSTLY IN FIERCELY FOUGHT AIRFARE WARS IN AN INTERVIEW LAST WEEK MR PENA SAID THAT THE OBJECTIVE IS TO FIND THE BEST CREATIVE MINDS IN AVIATION WHO ARE WILLING TO WORK TOGETHER ON SOLUTIONS WE DON'T HAVE TIME FOR IDEOLOGICAL BATTLES HE ADDED THE LEGISLATIVE INITIATIVE WILL BE ANNOUNCED TODAY AT A CAPITOL HILL NEWS CONFERENCE BY MR PENA SEN ERNEST HOLLINGS D SC HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO REP NORMAN MINETA D CALIF AND REP BUD SCHUSTER R PA THE PANEL WILL LOOK AT A WIDE ARRAY OF ISSUES INCLUDING FOREIGN INVESTMENT IN US AIRLINES BILATERAL AVIATION AGREEMENTS WITH JAPAN AND OTHER TRADING PARTNERS THE AEROSPACE INDUSTRY'S DEEPENING SLUMP TAX AND REGULATORY RELIEF AIRPORT CONGESTION AND OVERCAPACITY THERE ARE TOO MANY SEATS CHASING TOO FEW PASSENGERS SAID REP MINETA CHAIRMAN OF THE HOUSE PUBLIC WORKS AND TRANSPORTATION COMMITTEE UNDER THE LEGISLATION THE CLINTON ADMINISTRATION WILL GET TO NAME FIVE OF THE 15 MEMBERS WHILE THE SENATE AND THE HOUSE LEADERSHIPS WILL EACH GET TO NAME THREE DEMOCRATS AND TWO REPUBLICANS ACCORDING TO CONGRESSIONAL STAFFERS THE MEMBERS ARE EXPECTED TO COME FROM THE RANKS OF INDUSTRY LABOR AND AIRPORT MANAGERS AS WELL AS ACADEMIC CIRCLES IN ADDITION SOME LAWMAKERS MAY SERVE AS EXOFFICIO MEMBERS OR ADVISERS THE COMMISSION IS TO REPORT BACK IN THREE MONTHS WITH ITS RECOMMENDATIONS ACCORDING TO CONGRESSIONAL STAFFERS THE SEVENMEMBER PANEL THAT NEVER JELLED WAS TO HAVE REPORTED AFTER SIX MONTHS OF STUDY THE AIRLINES LOST 39 BILLION IN 1990 19 BILLION IN 1991 AND 44 BILLION LAST YEAR INCLUDING 2 BILLION FOR ONETIME CHARGES FROM AN ACCOUNTING RULE FOR RECORDING HEALTH BENEFITS FOR RETIREES AS A RESULT THEY HAVE FURLOUGHED THOUSANDS OF WORKERS CUT BACK SERVICE MOTHBALLED HUNDREDS OF PLANES IN CALIFORNIA'S MOHAVE DESERT AND CANCELED OR POSTPONED NEW PLANE ORDERS 9302160110 930216 LEISURE & ARTS THE GALLERY A MASTER RESCUED FROM THE MARGINS OF ITALIAN ART BY ROGER KIMBALL FORT WORTH TEXAS THE MAN ART HISTORIANS KNOW AS JACOPO BASSANO WAS BORN JACOPO OR GIACOMO DAL PONTE IN THE SMALL TOWN OF BASSANO DEL GRAPPA 30 MILES NORTHWEST OF VENICE THAT THE NAME OF BASSANO IS NOT NEARLY SO WELLKNOWN AS THE NAMES OF HIS ILLUSTRIOUS VENETIAN CONTEMPORARIES TITIAN VERONESE AND TINTORETTO REMINDS US THAT HISTORY INCLUDING ART HISTORY IS FREQUENTLY UNFAIR IT ALSO SAYS SOMETHING ABOUT THE PRESTIGE THAT RENAISSANCE VENICE THEN THE MOST POWERFUL CITY IN EUROPE COULD CONFER UPON ITS FAVORITE SONS FOR WHILE BASSANO VISITED VENICE EARLY ON IN HIS CAREER AND PROFITED MIGHTILY FROM HIS ACQUAINTANCE WITH THE WORKS OF TITIAN ET AL HE WAS CONTENT TO SPEND MOST OF HIS LONG LIFE CIRCA 15101592 OUTSIDE THE GLITTERING NIMBUS OF VENICE PRESIDING OVER THE DAL PONTE WORKSHOP IN HIS NATIVE TOWN TODAY TINTORETTO IS PRACTICALLY A HOUSEHOLD NAME WHILE BASSANO IS HARDLY MORE THAN A LEARNED REFERENCE THAT MAY CHANGE THE KIMBELL ART MUSEUM HERE TOGETHER WITH THE MUSEO CIVICO OF BASSANO DEL GRAPPA HAS ORGANIZED A SPECTACULAR EXHIBITION OF BASSANO'S WORK THAT SHOULD HELP RESCUE THIS RENAISSANCE MASTER FROM HIS UNDESERVED PLACE AT THE MARGINS OF 16THCENTURY ITALIAN ART THIS IS A SOMEWHAT DIFFERENT VERSION OF THE SHOW THAT WAS ON VIEW LAST FALL IN BASSANO DEL GRAPPA IT CONSISTS OF SOME 50 PAINTINGS AND 20 DRAWINGS AND IT IS UP AT THE KIMBELL THROUGH APRIL 25 THE EXHIBITION IS THE FIRST OVERVIEW OF BASSANO'S ART SINCE THE LATE 1950S AND THE FIRST EVER TO COME TO THE US IT IS WELL WORTH GOING OUT OF YOUR WAY TO SEE AS IS USUAL WITH EXHIBITIONS ORGANIZED BY THE KIMBELL THE OBJECTS WERE CHOSEN WITH GREAT CARE AND ARE BEAUTIFULLY INSTALLED IN WHAT ARE CERTAINLY AMONG THE MOST INVITING GALLERIES OF ANY 20THCENTURY MUSEUM FOR MOST OF US OF COURSE WHAT MAKES THIS SHOW IMPORTANT IS THE OPPORTUNITY TO SAVOR SOME OF THE BEST WORK BY ONE OF THE MOST ACCOMPLISHED AND ORIGINAL PAINTERS OF THE LATE ITALIAN RENAISSANCE BUT THE RECENT DISCOVERY OF AN ACCOUNT BOOK FROM THE DAL PONTE WORKSHOP MAKES THE EXHIBITION AN IMPORTANT SCHOLARLY EVENT AS WELL RELIABLE DATES AND ATTRIBUTIONS OF MANY CONTROVERSIAL PAINTINGS HAVE NOW BEEN ESTABLISHED FOR THE FIRST TIME THE LONG DETAILED CATALOG ACCOMPANYING THE SHOW REHEARSES ALL THAT WITH GREAT EVEN INSISTENT THOROUGHNESS YET WHATEVER ITS CLAIM TO SCHOLARLY DISTINCTION JACOPO BASSANO IS FIRST OF ALL AN ARTISTIC FEAST IT MAY BE THAT BASSANO OCCUPIES A PLACE ONE STEP DOWN FROM TITIAN AND VERONESE IN THE PANTHEON OF RENAISSANCE GREATNESS BUT IT IS A SHORT STEP HIS PAINTINGS RANGE FROM SUMPTUOUS EXTRAVAGANZAS OF COLOR RIVALING TITIAN TO BROODING MELANCHOLIC SCENES WITH ACID COLORS AND MANNERIST FORESHORTENING THAT LOOK FORWARD TO EL GRECO IT IS THEREFORE NOT SURPRISING THAT THE WORD EXPERIMENTAL IS OFTEN USED TO DESCRIBE BASSANO'S ART IN THIS EXHIBITION ONE FINDS EXAMPLES OF THE MOST PRISTINE RESERVED NATURALISM SIDE BY SIDE WITH DRAMATICALLY ALMOST SURREALLY LIGHTED MANNERISM HIS COMPOSITIONS MOVE FROM THE COOLLY METICULOUS TO THE BREATHLESSLY EXPRESSIONISTIC ONE PAINTING IS FULL OF PRECISELY DELINEATED DETAIL THE NEXT IS A SWIRLING SCUMBLED PASSION OF FIGURES NOTHING IN THE OUTWARD PARTICULARS OF BASSANO'S LIFE WHAT LITTLE WE KNOW OF THEM SUGGESTS THAT HE WAS A NOTABLY ROMANTIC PERSONALITY THE ELDEST SON OF A MINOR LOCAL PAINTER AND CRAFTSMAN HE LIVED A QUIET RETIRING LIFE THE DAL PONTE CLAN SOCALLED BECAUSE THEY LIVED NEAR A FAMOUS WOODEN BRIDGE IN BASSANO DEL GRAPPA WERE TRUE RENAISSANCE ARTISANS THE DAL PONTE WORKSHOP TWO OF JACOPO'S SONS EVENTUALLY JOINED HIM THERE AS HE HAD EARLIER JOINED HIS FATHER COULD NOT AFFORD TO CONFINE ITSELF TO PRODUCING PORTRAITS ALTARPIECES AND FRESCOS AS WR REARICK POINTS OUT IN HIS LONG CATALOG ESSAY IT ALSO PROVIDED THE TOWN WITH BANNERS SHOP SIGNS LANTERNS DECORATED EASTER CANDLES AND PATTERNS FOR EMBROIDERY IT EVEN DESIGNED MARZIPAN GOODIES FOR PARTIES YET IT IS FOR HIS PAINTINGS AND DRAWINGS MANY OF THEM COLLABORATIONS THAT BASSANO DESERVES TO BE REMEMBERED TODAY ESPECIALLY NOVEL AND INFLUENTIAL WAS HIS INTRODUCTION OF EVERYDAY OBJECTS AND MOTIFS INTO RELIGIOUS PAINTINGS MANY OF BASSANO'S DEPICTIONS OF THE HOLY FAMILY AND OTHER BIBLICAL SCENES SHOW THE HUMANIZING GENIUS OF THE RENAISSANCE AND POINT TOWARD THE TRIUMPH OF DUTCH GENRE PAINTING IN THE 17TH CENTURY IN THE KIMBELL'S MARVELOUS SUPPER AT EMMAUS 1558 FOR EXAMPLE THE SUPERNATURAL REVELATION OF CHRIST TO TWO OF HIS DISCIPLES TAKES PLACE IN THE MOST ORDINARY OF ROADSIDE INNS THE BEMUSED INNKEEPER LOOKS ON AS A JAUNTILY DRESSED SERVANT BRINGS IN THE SUPPER AND TWO CATS DEEP IN THEIR SEPARATE DRAMA EYE EACH OTHER WARILY ACROSS THE ROOM THE HUMANIZING TOUCH OF BASSANO'S BRUSH IS ALSO EVIDENT IN HIS PORTRAITS WHICH REVEAL THE VULNERABILITY AND MORTALITY OF THEIR SUBJECTS WITHOUT COMPROMISING THEIR MORAL DIGNITY THAT IS TO SAY BASSANO ACHIEVES PSYCHOLOGICAL PENETRATION WITHOUT PSYCHOLOGICAL VIOLATION IN THE POIGNANTLY RENDERED PORTRAIT OF A MAN EARLY 1550S FROM THE J PAUL GETTY MUSEUM IN MALIBU CALIF FOR INSTANCE THE PUFFY CAREWORN EYES OF THE SITTER ARE AS MUCH A SIGN OF INNER STRENGTH AS FATIGUE AND THE AIR OF RESIGNED TRANSITORINESS OF WHICH THE CATALOG SPEAKS IS OFFSET BY THE SENSE OF SUFFERING MET AND OVERCOME BASSANO'S POWERS AS A DRAFTSMAN AND COLORIST HAVE BEEN PRAISED SINCE THE 16TH CENTURY THIS EXHIBITION PROVIDES US WITH A SPLENDID OPPORTUNITY FOR APPRECIATING THOSE POWERS NOT ONLY IN THE MAGNIFICENT ACHIEVEMENT OF THE ARTIST'S MASTERPIECES BUT ALSO AS THEY DEVELOPED DURING THE YEARS OF HIS APPRENTICESHIP IN THIS REGARD ONE OF THE MOST INSTRUCTIVE WORKS IS THE 1536 PICTURE OF THE CHIEF MAGISTRATE OF BASSANO DEL GRAPPA WITH HIS DAUGHTER AND BROTHER BEING PRESENTED TO THE MADONNA AND CHILD MOST OF THE RIGHT HALF OF THE PAINTING WAS EXECUTED BY BASSANO'S FATHER THE FIGURES ARE WOODEN THE ARCHITECTURAL PERSPECTIVE IS CLUMSILY SKEWED BUT THE FIGURES PAINTED BY THE YOUNGER BASSANO ESPECIALLY THE YOUNG GIRL PLAYING WITH A PUPPY VIBRATE WITH WARMTH AND FEELING NOT ONLY ARE THEY BY ANOTHER HAND THEY SEEM TO COME FROM A DIFFERENT WORLD BASSANO'S FULL POWER EXHIBITS ITSELF MOST STRIKINGLY IN THE LARGE COMPLEX COMPOSITIONS THAT ARE HIS MASTERPIECES THE ADORATION OF THE MAGI 1542 FROM THE NATIONAL GALLERIES OF SCOTLAND IN EDINBURGH FOR EXAMPLE IS AN EXTRAORDINARY TOUR DE FORCE OF MOVEMENT AND COLORISTIC ENERGY GLIMPSED IN SNAPSHOT LAZARUS AND THE RICH MAN 1554 FROM THE CLEVELAND MUSEUM OF ART SHOWS BASSANO TILTING TOWARD CARAVAGGIO WITH PRETERNATURAL LIGHTING EFFECTS AND HORIZONTAL FORESHORTENING OF THE FIGURE OF LAZARUS AND THE LAST SUPPER CIRCA 1546 FROM THE BORGHESE GALLERY IN ROME IS A STUNNING PSYCHOLOGICALLY ACUTE REDACTION OF RAPHAEL'S FAMOUS PICTURE OF THE SUBJECT SOME 18THCENTURY SCHOLARS MISTOOK IT FOR A TITIAN SO LUSH AND ACCOMPLISHED IS THE COLOR AT THE KIMBELL IT REPRESENTS AS MUCH A TESTIMONY TO THE RESTORER'S ART AS TO BASSANO'S SINCE THE PAINTING IS PRESENTED ONLY HALF RESTORED DOTTED WHITE LINES INDICATE WHICH BITS HAVE YET TO BE RECLAIMED JUDAS'S HEAD STANDS OUT SHARPLY IN ITS BOX OF UNRESTORED GLOOMINESS A CUTE TRICK PERHAPS BUT IT WOULD HAVE BEEN NICER TO SEE THIS MASTERWORK STRAIGHT 9302160109 930216 WHAT'S NEWS WORLDWIDE SARAJEVO'S LEADERS REFUSED FOR A FOURTH DAY TO DISTRIBUTE UN FOOD AID OFFICIALS IN BOSNIA'S BESIEGED CAPITAL SAID THEIR ACTION WAS INTENDED TO PROTEST THE UN'S FAILURE TO GET FOOD AND MEDICINE TO TOWNS IN EASTERN BOSNIA WHERE UP TO 200000 MUSLIMS ARE SAID TO BE TRAPPED BY SERBS MEANWHILE SARAJEVO'S RESIDENTS WERE TOLD TO STAY INDOORS BECAUSE OF FIERCE SHELLING THE CITY'S ONLY REMAINING BAKERY RAN OUT OF FUEL AND PRODUCED NO BREAD FOR THE FIRST TIME SINCE THE BOSNIAN WAR STARTED THE US IS PLANNING TO URGE UN COMMISSIONERS TO SUPPORT THE ESTABLISHMENT OF A TRIBUNAL THAT WOULD TRY PEOPLE ACCUSED OF WAR CRIMES IN THE FORMER YUGOSLAVIA US OFFICIALS SAID YELTSIN LEFT MOSCOW UNEXPECTEDLY FOR WHAT WAS DESCRIBED AS A 12DAY HOLIDAY AT A COUNTRY VILLA AN AIDE TO YELTSIN SAID HIS HEALTH WAS FINE HOURS AFTER THE RUSSIAN PRESIDENT'S DEPARTURE CONSERVATIVE RIVAL KHASBULATOV THE PARLIAMENT SPEAKER PROPOSED A POPULAR CONFIDENCE VOTE ON YELTSIN TO PARALLEL A CONSTITUTIONAL REFERENDUM THE ANGOLAN GOVERNMENT CLAIMED IT REGAINED GROUND FROM UNITA REBELS IN A BATTLE FOR THE CITY OF HUAMBO BUT DIPLOMATS SAID THE GOVERNMENT'S POSITION IN HUAMBO WAS PRECARIOUS AND THE REBELS STILL CONTROL LARGE PARTS OF THE CITY ANGOLAN OFFICIALS MEANWHILE SAID AT LEAST 6000 CIVILIANS HAVE DIED IN MORE THAN A MONTH OF FIGHTING THE REV JESSE JACKSON THREATENED TO ORGANIZE A HUNGER STRIKE IN THE US UNLESS THE CLINTON ADMINISTRATION ACTS MORE QUICKLY TO ALLOW HIVINFECTED HAITIANS INTO THE COUNTRY SEPARATELY A HALFDOZEN HAITIAN POLITICAL PARTIES SAID THEY WOULD TAKE PART IN A STRIKE TODAY TO DEMAND THE RESIGNATION OF MILITARYBACKED PRIME MINISTER BAZIN QUESTIONS HAVE ARISEN ABOUT THE ROLE THE HEALTHCARE INDUSTRY PLAYED IN INFLUENCING THE AMERICAN CANCER SOCIETY'S RECOMMENDATION IN NOVEMBER THAT MEN OVER 50 GET AN ANNUAL BLOOD TEST DESIGNED TO DETECT PROSTATE CANCER THERE ALSO ARE QUESTIONS ABOUT THE RELIABILITY OF THE TEST WHICH COSTS FROM 30 TO 70 GEN POWELL CALLED FOR CONSOLIDATION OF AIRCRAFT MAINTENANCE AND OTHER SUPPORT SERVICES FOR THE MILITARY THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF ALSO RECOMMENDED THAT A NEW HEADQUARTERS BE SET UP TO OVERSEE ALL FORCES BASED IN THE US AND TO PREPARE THE MILITARY FOR ITS NEW PEACEKEEPING AND DISASTERRELIEF MISSIONS LITHUANIANS OVERWHELMINGLY ELECTED FORMER COMMUNIST PARTY CHIEF BRAZAUSKAS IN THEIR FIRST DIRECT PRESIDENTIAL VOTE SUNDAY BRAZAUSKAS REGARDED AS A POLITICAL MAVERICK HAS PLEDGED TO RESTORE ORDER TO THE ECONOMY AND RAISE LIVING STANDARDS WHICH HAVE DECLINED SINCE LITHUANIA WON ITS INDEPENDENCE FROM THE SOVIET UNION IN 1991 THE PRESIDENTELECT OF CYPRUS SAID HE WOULD ASK FOR A POSTPONEMENT OF NEXT MONTH'S UNSPONSORED TALKS ON ENDING THE 18YEAR DIVISION OF THE ISLAND GLAFCOS CLERIDES WHO NARROWLY DEFEATED INCUMBENT PRESIDENT VASSILIOU IN SUNDAY'S VOTE SAID HE NEEDS TIME TO CONSULT WITH THE COUNTRY'S CYPRIOT AND GREEK POLITICAL LEADERSHIP RIVAL SOMALI FACTIONS CLASHED NORTH OF THE REGION CONTROLLED BY THE USLED MILITARY FORCES IN SOMALIA AND SOME FACTIONS DEFIED AN ORDER TO LIST THE WEAPONS AND MILITIAS THAT ARE UNDER THEIR CONTROL MEANWHILE UN OFFICIALS SAID UP TO 25000 TROOPS WOULD BE DEPLOYED UNDER ITS FLAG AFTER A HANDOVER OF COMMAND IN SOMALIA THE SLOVAK PARLIAMENT ELECTED ECONOMIST MICHAL KOVAC AN ALLY OF PRIME MINISTER MECIAR AS INDEPENDENT SLOVAKIA'S FIRST PRESIDENT KOVAC 62 WAS THE ONLY CANDIDATE WHILE THE PRESIDENCY IS LARGELY CEREMONIAL THE VOTE WAS IMPORTANT FOR MECIAR AFTER RECENT POLITICAL INFIGHTING THAT SPARKED SPECULATION HIS PARTY MIGHT SPLIT BRAZILIAN POLICE SAID THE TWO CONVICTED KILLERS OF ENVIRONMENTAL ACTIVIST CHICO MENDES ESCAPED WITH SEVEN OTHER INMATES FROM A PRISON IN THE WESTERN AMAZON REGION OF BRAZIL THE 1988 MENDES SLAYING SPARKED OUTRAGE ABROAD AND FOCUSED ATTENTION ON THE DESTRUCTION OF THE AMAZON RAIN FOREST NORTH KOREA IS SENDING ITS MINISTER OF ATOMIC ENERGY TO VIENNA TO BARGAIN WITH INTERNATIONAL ATOMIC ENERGY AGENCY OFFICIALS IN AN ATTEMPT TO PREVENT THE AGENCY FROM DECLARING PYONGYANG IN VIOLATION OF A TREATY OBLIGATION THE IAEA WANTS TO INSPECT TWO NUCLEAR DISPOSAL SITES BUT NORTH KOREA HAS SAID THIS WOULD VIOLATE ITS SOVEREIGNTY 9302160107 930216 POLITICS & POLICY SENATE DEMOCRATS KEEP CLASHING WITH CLINTON FINDING HABIT OF INDEPENDENCE HARD TO BREAK BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE AS PRESIDENT CLINTON IS LEARNING CAN BE AS LOUD AND EMPTY AS A TIN DRUM IT IS NOT THE SENATE I ONCE KNEW LAMENTS WEST VIRGINIA SEN ROBERT BYRD THE SELFAPPOINTED KEEPER OF THE CHAMBER'S TRADITIONS IT HAS LOST ITS SOUL MR CLINTON WHO GOES BEFORE A JOINT SESSION OF CONGRESS TOMORROW NIGHT TO OUTLINE HIS ECONOMIC PACKAGE DOESN'T REQUIRE THE INSTITUTION TO FIND ITS SOUL JUST A LITTLE DISCIPLINE AND PATIENCE SINCE TAKING POWER LAST MONTH HIS ADMINISTRATION HAS BEEN PUMMELED BY SENATE DEMOCRATS WHO HAVE GROWN ACCUSTOMED AS HAS MR BYRD HIMSELF TO BEING INDEPENDENT ACTORS DURING 12 YEARS OF REPUBLICAN RULE THERE HAS BEEN A LACK OF UNDERSTANDING BY DEMOCRATS ABOUT HOW DIFFICULT THIS TRANSITION IS SAYS SEN BOB KERREY OF NEBRASKA HOUSE DEMOCRATS ARE OPENLY SCORNFUL OF THEIR SENATE COUNTERPARTS WE HANG TOGETHER OR WE HANG SEPARATELY WITH THE PRESIDENT SAYS REP MIKE SYNAR OF OKLAHOMA OVER THERE IT'S PEACOCK OF THE DAY IT'S A LESSON THE PRESIDENT HAS LEARNED REPEATEDLY WHEN ZOE BAIRD'S NOMINATION TO BE ATTORNEY GENERAL FALTERED WHITE HOUSE ALLIES WERE SURPRISED THAT LOUISIANA SEN JOHN BREAUX WHO ADVERTISES HIS FRIENDSHIP WITH MR CLINTON BROKE RANKS TO CALL PUBLICLY FOR HER WITHDRAWAL THE ISSUE OF GAYS IN THE MILITARY PROVOKED DAYS OF PAINFUL CONFRONTATION WITH ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN WHO TOLD A REPORTER I NEVER HAVE THOUGHT OF THE PRESIDENT AS THE BOSS AS SOON AS THE TREASURY RAISED THE POSSIBILITY OF AN ENERGY TAX OKLAHOMA SEN DAVID BOREN OF THE FINANCE COMMITTEE WEIGHED IN AGAINST IT SEN DANIEL PATRICK MOYNIHAN THE FINANCE CHAIRMAN SAW RED AT THE NOTION OF TRIMMING SOCIAL SECURITY BENEFITS AT THE BUDGET COMMITTEE CHAIRMAN JAMES SASSER TOOK TO THE EDITORIAL PAGES AND AIRWAVES TO PRESS FOR FURTHER INCREASES IN TAXES ON THE WEALTHY MR SASSER WHO HIMSELF WORRIES ABOUT THE IMAGE OF A BALKANIZED SENATE SAYS HE ACTED FOR FEAR THAT SILENCE WOULD BE MISINTERPRETED AS ACQUIESCENCE TO BE SURE THESE FIRST WEEKS HAVE BEEN TORTURE FOR LAWMAKERS COMPELLED TO RESPOND TO HOMESTATE INTERESTS FRIGHTENED BY BITS OF A DEFICIT PLAN MOST WILL ONLY BEGIN TO SEE FULLY TOMORROW STILL THE CONTRAST WITH THE REPUBLICAN TAKEOVER IN 1981 IS TELLING RONALD REAGAN'S LANDSLIDE PUT SENATE REPUBLICANS IN POWER FOR THE FIRST TIME IN DECADES AND GRATEFUL LAWMAKERS SHOWED IMMENSE DISCIPLINE IN PURSUING THE NEW PRESIDENT'S AGENDA AN AGENDA MOREOVER THAT WAS RIDING A POPULAR WAVE OF ANTITAX ANTIGOVERNMENT SENTIMENT BY COMPARISON SENATE DEMOCRATS AREN'T SO INDEBTED TO MR CLINTON AND SHOW LESS OF THE URGENCY FELT BY HOUSE DEMOCRATS WHO SUFFERED THE BRUNT OF THE TURMOIL AND SCANDALS OF THE LAST CONGRESS THEY ALSO FACE AN AGENDA OF DEFICIT REDUCTION TAX INCREASES AND HEALTHCARE REFORM THAT IS FAR MORE POLITICALLY DIFFICULT THAN WAS THE GOP ROADMAP OF 12 YEARS AGO SENATE MAJORITY LEADER GEORGE MITCHELL HAS FORGED A CLOSE WORKING RELATIONSHIP WITH THE WHITE HOUSE WHICH TOOK HEART WHEN ONLY TWO DEMOCRATS DEFECTED ON A TABLING VOTE THAT BROKE THE BACK OF REPUBLICAN EFFORTS TO DELAY PASSAGE OF THE FAMILY AND MEDICAL LEAVE BILL IN THE SENATE YET THE HESITANCY IN MR MITCHELL'S VOICE BETRAYS A RECOGNITION OF THE FRACTIOUSNESS AROUND HIM CERTAINLY DEMOCRATS IN THE SENATE WILL HE PAUSES AND CORRECTS HIMSELF SHOULD AND I THINK WILL BE WILLING TO CHANGE THE WAYS THEY HAVE OPERATED IN THE PAST MR MITCHELL WILL BE PRESSED TO ADOPT A MORE FORCEFUL LEADERSHIP STYLE NOT ONLY TO PREVENT THE THREAT OF SENATE GRIDLOCK BUT TO KEEP SUCH GRIDLOCK FROM BECOMING AN EXCUSE FOR THE HOUSE NOT TO ACT EITHER ALREADY THE HOUSE WANTS THE SENATE TO GO FIRST ON CAMPAIGN FINANCE REFORM WHEN ASKED IF DEMOCRATS CAN PASS AN ENERGY TAX HOUSE SPEAKER THOMAS FOLEY SUGGESTS IT WILL TURN ON THE PROSPECTS FOR FINAL PASSAGE IN THE SENATE THE GREAT RISK IS THAT THE SENATE'S INDEPENDENCE WILL HARDEN INTO A PERMANENT ESTRANGEMENT FROM THE ADMINISTRATION THE LOSS OF A HANDFUL OF SEATS NEXT YEAR COULD ROB THE DEMOCRATS OF THEIR SLIM WORKING MAJORITY EVEN AMONG THE PRESIDENT'S MOST LOYAL SENATE SUPPORTERS THERE IS ALREADY DISMAY AT THE INEPTNESS OF RECENT WEEKS A LEADING SENATE DEMOCRAT WAS STUNNED WHEN TOLD BY A TRANSITION OFFICIAL THAT HE WAS TOO MIDDLE CLASS IN HIS OBJECTIONS TO MS BAIRD IN THE CASE OF GAYS IN THE MILITARY THE WHITE HOUSE'S POLITICAL OPERATION CLAIMED THE HIGH MORAL GROUND FOR THE PRESIDENT'S DECISION TO LIFT THE BAN BUT THEN WORRIED ALOUD THAT APPOINTED DEMOCRATIC SEN BOB KRUEGER HURT HIMSELF IN TEXAS'S COMING MAY ELECTION BY SUPPORTING THAT POSITION BUT THE SENATE ITSELF IS HARDLY IMMUNE FROM PUBLIC DISDAIN DESPITE THE TURNOVER OF THE LAST DOZEN YEARS THE CHAMBER IS IN MANY RESPECTS MORE OSSIFIED THAN EVER STALLING TACTICS HAVE PROVOKED A RECORD NUMBER OF CLOTURE MOTIONS THAT LIMIT DEBATE POWER IS SO CONCENTRATED THAT ALMOST ALL THE TOP CHAIRMANSHIPS ARE HELD BY A SELECT GROUP OF DEMOCRATS SERVING ON JUST THREE COMMITTEES APPROPRIATIONS FINANCE AND ARMED SERVICES MR BYRD THE APPROPRIATIONS CHAIRMAN AND A FIERCE OPPONENT OF SURRENDERING POWER TO THE PRESIDENT IN THE FORM OF A LINEITEM VETO IS BOTH A SYMBOL OF THIS AUTHORITY AND WELLPOSITIONED TO SEE ITS SHORTCOMINGS HE FEARS THE SENATE'S EVERGREATER DEPENDENCE ON POLITICAL FUNDS THE SPECIAL INTERESTS CORRAL AND CAPTURE TOO MANY PEOPLE BEFORE THEY GET HERE HE SAYS A TRADITIONALIST THE FORMER MAJORITY LEADER IS DISMAYED THAT SO FEW SENATORS EVEN GO TO THE FLOOR BECAUSE THEY ARE TOO BUSY ELSEWHERE INCLUDING RAISING MONEY IN AN AGE OF TELEVISED TOWNHALL MEETINGS MR BYRD SAYS THAT SENATE DEBATE SHOULD BE USED TO EDUCATE THE PUBLIC ABOUT THE HARD CHOICES AHEAD IN THE SAME VEIN SEN KERREY ARGUES FOR THE WHITE HOUSE TO ENCOURAGE CONGRESS TO TAKE THE LEAD AND POLITICAL HEAT ON ISSUES LIKE HEALTHCARE REFORM TO GIVE THE PRESIDENT GREATER RUNNING ROOM TELEVISED HEARINGS ARE THEMSELVES A POWERFUL TOOL AND THERE MAY BE NO GREATER POLITICAL TESTS THAN THOSE PLANNED BY SEN NUNN THIS SPRING ON THE PRESIDENT'S PLAN TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY THE HEARINGS MAY BE A FORUM TO ADDRESS NOT ONLY THE PROPOSED EXECUTIVE ORDER BUT BROADER QUESTIONS OF SEXUAL HARASSMENT OF WOMEN IN THE ARMED FORCES PROMPTED BY THE NAVY'S TAILHOOK SCANDAL IN THIS BROADER CONTEXT SEN NUNN MAY YET BE ABLE TO DEFINE COMMON RULES OF CONDUCT FOR GAYS AND HETEROSEXUALS ALIKE WHILE AT THE SAME TIME LEADING THE CHAMBER TOWARD A COMPROMISE WITH THE PRESIDENT IT'S A LOT HARDER TO BUILD THAN IT IS TO CRITICIZE SAYS ARKANSAS SEN DAVID PRYOR WHO WATCHES FROM THE VANTAGE POINT OF BEING BOTH A SENATE VETERAN AND LONGTIME FRIEND OF MR CLINTON ALL OF US HAVE GOTTEN SO USED TO BEING INDEPENDENT CONTRACTORS I DON'T KNOW WHETHER WE CAN BREAK THAT MENTALITY OR NOT 9302160106 930216 WHITE HOUSE CONSIDERS TAXES TO COVER HEALTHCARE COSTS OF UP TO 90 BILLION BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS CONSIDERING A SECOND ROUND OF TAX INCREASES FOR LATER THIS YEAR TO PAY FOR PROVIDING UNIVERSAL HEALTHCARE COVERAGE A PROGRAM THAT CLINTON ADMINISTRATION OFFICIALS PREDICT COULD COST 30 BILLION TO 90 BILLION ANNUALLY SOME OF THE POSSIBLE TAX INCREASES WERE LAID OUT IN A MEMO SENT TO HILLARY RODHAM CLINTON AND OTHER MEMBERS OF THE WHITE HOUSE HEALTHCARE TASK FORCE FROM IRA MAGAZINER THE SENIOR PRESIDENTIAL ADVISER WHO IS RUNNING THE PANEL'S DAYTODAY OPERATIONS THE JAN 26 MEMO DESCRIBED AS A PRELIMINARY WORK PLAN FOR THE TASK FORCE WAS OBTAINED LATE LAST WEEK BY THE WALL STREET JOURNAL SOME ADMINISTRATION OFFICIALS ARE ARGUING THAT HEALTH COVERAGE FOR ALL AMERICANS CAN BE ACHIEVED WITHOUT IMPOSING ANY TAX INCREASES BUT THE MAGAZINER MEMO INDICATES THAT A VARIETY OF MONEYRAISING OPTIONS BEYOND THOSE TO BE UNVEILED TOMORROW BY PRESIDENT CLINTON TO HELP SHRINK THE FEDERAL BUDGET DEFICIT ARE BEING EXPLORED AMONG THEM TAXING THE PREMIUMS TAKEN IN BY INSURANCE COMPANIES TAXING BENEFIT PLANS THAT OFFER COVERAGE ABOVE A CERTAIN LEVEL CURRENTLY ALL EMPLOYEE HEALTHCARE BENEFITS ARE EXEMPT FROM TAXATION A GROWING NUMBER OF ECONOMISTS HOWEVER THINK THAT TAXING BENEFITS ABOVE A THRESHOLD WOULD FORCE PEOPLE TO BE MORE SENSITIVE TO THE AMOUNTS PAID FOR COVERAGE SUCH SENSITIVITY SHOULD SPUR COMPETITION AMONG HEALTH PROVIDERS AND IN TURN PUSH DOWN PRICES FOR EVERYONE LEVYING A CORPORATE TAX THIS TAX CONCEIVABLY WOULD BE IN ADDITION TO THE GENERAL INCREASE IN THE CORPORATE TAX RATE TO 36 THAT THE PRESIDENT IS EXPECTED TO PROPOSE TOMORROW NIGHT RAISING TAXES ON PRODUCTS WHICH CONTRIBUTE TO HEALTH PROBLEMS INCLUDING ALCOHOLIC BEVERAGES TOBACCO POLLUTANTS AND GUNS CREATING A TAX ON NONCRITICAL HEALTH SERVICES WHICH OFFICIALS SUGGESTED MIGHT INCLUDE SUCH THINGS AS PLASTIC SURGERY NO DECISIONS HAVE BEEN MADE ADMINISTRATION OFFICIALS STRESS THAT NO DECISIONS HAVE BEEN MADE ON HOW THE GOVERNMENT SHOULD HELP FINANCE HEALTH COVERAGE FOR THE NATION'S 37 MILLION UNINSURED BESIDES THE POSSIBLE TAX INCREASES THAT WERE LISTED THE MEMO SAID THAT ABOUT 20 OTHER UNDISCLOSED ALTERNATIVES ARE BEING EXAMINED DEPUTY TREASURY SECRETARY ROGER ALTMAN INTERVIEWED LAST WEEKEND ON CNN'S EVANS AND NOVAK SAID THAT A TYPE OF NATIONAL SALES TAX KNOWN AS A VALUEADDED TAX IS AMONG THE MANY OPTIONS THAT WILL GET VERY SERIOUS CONSIDERATION WITH REGARD TO HEALTHCARE REFORM BUT LATER IN THE PROGRAM HE ADDED I DON'T PERSONALLY THINK THERE WILL BE A VAT THE ADMINISTRATION ALSO HOPES TO BEGIN CURBING THE SHARP RISE IN MEDICAL COSTS THROUGH A SERIES OF STOPGAP MEASURES ACCORDING TO THE MAGAZINER MEMO THESE SHORTTERM OPTIONS INCLUDE INSTITUTING GOVERNMENT PRICE CONTROLS BY EXTENDING MEDICARE RATE RESTRICTIONS WHICH COVER DOCTORS AND HOSPITALS TO THE PRIVATE SECTOR ON TOP OF THIS PRESIDENT CLINTON TOMORROW IS EXPECTED TO PROPOSE REDUCING FEDERAL MEDICARE PAYMENTS TO DOCTORS AND HOSPITALS AS PART OF HIS ADMINISTRATION'S DEFICITREDUCTION EFFORT THE MAGAZINER MEMO BY CONTRAST FOCUSES ON GENERATING SAVINGS AND RAISING REVENUE FOR THE ADMINISTRATION'S HEALTHCARE REFORM INITIATIVE WHICH THE PRESIDENT HAS PLEDGED TO PRESENT TO CONGRESS BY MAY 1 THE CENTERPIECE OF HEALTH REVISION WILL BE A SYSTEM OF MANAGED COMPETITION UNDER WHICH EMPLOYERS AND INDIVIDUALS WOULD BUY THEIR HEALTH INSURANCE THROUGH LARGE PURCHASING NETWORKS THE HOPE IS THAT THE BUYING POWER OF THESE BIG NETWORKS WHICH ARE TO BE FINANCED BY BOTH BUSINESSES AND THE GOVERNMENT WOULD RESULT IN LOWER PRICES AND IMPROVED QUALITY FOR EVERYONE TO BRING FURTHER DISCIPLINE TO THE SYSTEM THE ADMINISTRATION ALSO WANTS TO SET A NATIONAL BUDGET FOR PRIVATE AND PUBLIC HEALTH SPENDING HOWEVER MR MAGAZINER CAUTIONED IN THE MEMO THAT MOST OF THE SAVINGS REALIZED UNDER ALMOST ANY SET OF POLICY OPTIONS WILL BE GENERATED IN THE PRIVATE SECTOR RATHER THAN FROM GOVERNMENT PROGRAMS SUCH AS MEDICARE AND MEDICAID AS A RESULT HE EXPLAINED RECAPTURING PRIVATE SECTOR SAVINGS PRESUMABLY THROUGH TAX INCREASES IS CRUCIAL TO REALIZING POSITIVE EFFECTS FROM HEALTHCARE REFORM FOR THE FEDERAL BUDGET MR MAGAZINER WARNED THAT SUCH PROPOSALS WILL BE COMPLEX TO DESIGN ECONOMICALLY AS THEY MUST BE EFFICIENT AND EQUITABLE THEY WILL ALSO BE HARD TO DESIGN POLITICALLY NONETHELESS THERE MAY BE NO CHOICE GIVEN HOW EXPENSIVE IT WILL BE TO PROVIDE UNIVERSAL COVERAGE MR MAGAZINER WROTE THAT DEPENDING ON HOW THE HEALTHCARE OVERHAUL IS STRUCTURED UNIVERSAL ACCESS COULD COST THE GOVERNMENT AN ADDITIONAL 30 BILLION TO 90 BILLION A YEAR BY 1997 9302160105 930216 CORRECTIONS & AMPLIFICATIONS DON AURIEMMA PRESIDENT OF AURIEMMA CONSULTING GROUP A MANAGEMENT CONSULTANT TO CREDIT CARD BUSINESSES SAID COMMENTS ATTRIBUTED TO HIM IN WEDNESDAY'S ADVERTISING COLUMN WERE ABOUT MASTERCARD INTERNATIONAL INC'S MID1980S MASTER THE POSSIBILITIES CAMPAIGN NOT ITS MOST RECENT MASTER THE MOMENT CAMPAIGN AS REPORTED COOPERATIVE HOME CARE ASSOCIATES A NEW YORK HOME HEALTHCARE COMPANY WAS INCORRECTLY IDENTIFIED AS COMMUNITY HEALTH CARE ASSOCIATES IN FRIDAY'S ENTERPRISE ARTICLE A LOS ANGELES OFFICE TOWER DEVELOPED BY RAFFI COHEN EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION IN EARLY JANUARY A FRIDAY ARTICLE CITED THE BUILDING FIGUEROA PLAZA I AS AN EXAMPLE OF CURRENT PROBLEMS IN THE CITY'S DOWNTOWN COMMERCIAL REAL ESTATE MARKET 9302160104 930216 NIPPONDENSO REPORTS PRETAX PROFIT FELL 21 FOR ALL OF LAST YEAR TOKYO NIPPONDENSO CO JAPAN'S LARGEST PRODUCER OF ELECTRONIC PARTS FOR AUTOMOBILES REPORTED A 21 DECLINE IN UNCONSOLIDATED PRETAX PROFIT FOR 1992 THE COMPANY WHICH IS A MEMBER OF THE TOYOTA MOTOR GROUP SAID PRETAX NET FELL TO 6579 BILLION YEN 545 MILLION FROM 8305 BILLION YEN IN 1991 NET INCOME DROPPED 25 TO 3429 BILLION YEN FROM 4548 BILLION YEN SALES TOTALED 1358 TRILLION YEN A 09 INCREASE FROM 1346 TRILLION YEN IN 1991 FOR THE CURRENT YEAR THE COMPANY FORECAST THAT UNCONSOLIDATED PRETAX PROFIT WILL RISE A SLIM 03 TO 66 BILLION YEN NET INCOME IS SEEN INCHING UP 06 TO 3450 BILLION YEN WHILE SALES ARE EXPECTED TO REACH 1360 TRILLION YEN UP 02 IN THE LATEST REPORTING PERIOD THE COMPANY'S PRETAX PROFIT WAS ERODED BY INCREASING LABOR COSTS AND THE YEN'S APPRECIATION IN INTERNATIONAL CURRENCY MARKETS A COMPANY OFFICIAL SAID 9302160103 930216 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN CAMPUS RECRUITING PLUMMETS AS COMPANIES TARGET SPECIFIC HIRES NEARLY HALF THE 258 COMPANIES SURVEYED BY NORTHWESTERN UNIVERSITY PLAN TO CUT COLLEGE VISITS A THIRD OF THEM CUT THEIR OVERALL RECRUITING BUDGETS ACCORDING TO THE COLLEGE'S LINDQUISTELLICOTT REPORT AT GEORGE WASHINGTON UNIVERSITY ONLY 100 FIRMS RECRUITED LAST YEAR DOWN 59 FROM FIVE YEARS AGO NOW STRATEGIC HIRES ARE THE TARGET SAYS MAURY HANIGAN WHO RUNS A NEW YORK RECRUITING FIRM PRICE WATERHOUSE DEVELOPS A BEST AND BRIGHTEST STRATEGY TO DOUBLE ITS PERCENTAGE OF MINORITY NEW HIRES TO 16 AT MOSTLY BLACK HOWARD UNIVERSITY 60 OF THE RECRUITING COMPANIES HAVE INTERNSHIP PROGRAMS UP FROM 15 IN 1987 DALLAS RECRUITER ROGER CAMERON ADVISES STUDENTS TO FIND A CORPORATE MENTOR WHEN THEY ARE FRESHMEN OR SOPHOMORES TO PROVIDE THEM WITH A REALWORLD VIEWPOINT COMPANIES GET TOUGHER ON SMOKERS AFTER STUDIES CITE THE DANGERS THE ENVIRONMENTAL PROTECTION AGENCY'S RECENT PRONOUNCEMENT THAT SECONDHAND SMOKE IS A CARCINOGEN PRODS ORGANIZATIONS TO BAR SMOKING THE SECURITIES INDUSTRY ASSOCIATION JUST BANNED TOBACCO AT ITS NEW YORK OFFICES FOSTER WHEELER CORP CLINTON NJ WILL END WORKPLACE SMOKING BY MAY SOME COMPANIES START CHARGING HIGHER MEDICAL PREMIUMS FOR SMOKERS MANY FIRMS BACK STOPSMOKING PROGRAMS TENNECO INC PAYS FOR NICOTINE PATCHES FOR THE LAST YEAR SHELL OIL CO PAID EMPLOYEES UP TO 300 TO TAKE A NOSMOKING CLASS PENNWALT CORP OFFERS 150 FOR A SIMILAR PROGRAM BUT THERE IS NO SOFT SELL AT DALLAS TRUCKER FROZEN FOOD EXPRESS INDUSTRIES WHICH BANS SMOKING IN BUILDINGS AND ON THE GROUNDS WITH THIS DECREE YOU CAN QUIT OR YOU CAN QUIT LABOR AND MANAGEMENT ARE SKEPTICAL ABOUT EXPECTED JOBTRAINING PROGRAMS I HAVEN'T SEEN MANY GOVERNMENT PROGRAMS THAT CAN DO THE KIND OF TRAINING THAT BUSINESS DOES SAYS KEITH POSTON NATIONAL ALLIANCE OF BUSINESS TEAMSTERS PRESIDENT RON CAREY WANTS THE WHITE HOUSE TO WORRY ABOUT THE FLOW OF US FACTORIES OVERSEAS BEFORE TAKING ON JOB TRAINING WHAT THE HELL WOULD YOU TRAIN THESE PEOPLE TO DO STAND ON THE UNEMPLOYMENT LINE HE ASKS STILL TRAINING WILL BE A HEFTY PIECE OF THE ECONOMIC PLAN PRESIDENT CLINTON PLANS TO UNVEIL TOMORROW LABOR SECRETARY ROBERT REICH SEES A SYSTEM OF LIFETIME LEARNING AND WILL PROD COMPANIES TO SPEND AT LEAST 15 OF PAYROLL ON TRAINING BUT WILL MONEY GET TO THE WORKER CURRENTLY ABOUT 75 OF FIRMS' TRAINING BUDGETS GOES FOR EXECUTIVES TWO MAJOR GROUPS WILL BE TARGETED FOR JOB TRAINING IN THE CLINTON PLAN YOUTH AND WORKERS PERMANENTLY DISPLACED FROM AILING INDUSTRIES OUCH IT'S OFFICIAL THE NUMBER OF EMPLOYEES WORKING FOR FEDERAL STATE AND LOCAL GOVERNMENTS SURPASSED THE LEVEL OF MANUFACTURING JOBS IN 1992 THE BUREAU OF LABOR STATISTICS REPORTS THE 182 MILLION GOVERNMENT EMPLOYEES WHICH EXCLUDES MILITARY PERSONNEL EXCEEDED THE SLIPPING MANUFACTURING SECTOR BY 100000 TO SUPPORT IT ALL THE AVERAGE FAMILY PAYS 16110 IN TAXES SAYS THE DALLASBASED INSTITUTE FOR POLICY INNOVATION THE SNAILS OF JUSTICE IT ONLY TOOK 11 1/2 YEARS TO RESOLVE BUT THE NATIONAL LABOR RELATIONS BOARD RULED AGAINST WORKERS WHO WERE FIRED AFTER WALKING OUT OF A TNS INC URANIUMPRODUCTS FACTORY THE WORKERS HAD CLAIMED THE PLANT WAS ABNORMALLY DANGEROUS THE CASE WAS THE OLDEST ONE PENDING BEFORE THE NLRB WHOSE SPOKESMAN CALLS THE DELAY AN ABERRATION AID FOR THE UNEMPLOYED PROBABLY WILL COME IN SEPARATE LEGISLATION FROM THE WHITE HOUSE ECONOMICSTIMULUS PACKAGE THE CLINTON ADMINISTRATION DOESN'T WANT THE EXTENSION TO OCTOBER OF EMERGENCY JOBLESS BENEFITS TO BE SLOWED BY HAGGLES OVER THE BIGGER SET OF PROPOSALS CONGRESSIONAL DEMOCRATS HOPE TO PUSH THE BILL THROUGH COMMITTEE THURSDAY JUST AFTER MR REICH TESTIFIES ON A PLAN TO LINK SUCH BENEFITS TO BETTER COUNSELING AND TRAINING PROGRAMS OVERHAUL RULES ON HOUSEHOLD HELP AFTER NANNYGATE CORPORATIONS URGE I DON'T KNOW IF ANYONE REALLY UNDERSTANDS THEM SAYS BRAD PARKER A DIAL CORP SPOKESMAN JANET COLSON A VICE PRESIDENT AT RESTAURANT ENTERPRISES GROUP INC IRVINE CALIF DECRIES PAPERWORK GOING TO THE IRS WHEN THERE ARE OTHER ISSUES THE IRS SHOULD BE SPENDING TIME ON WORSE IS A LACK OF AFFORDABLE FLEXIBLE CHILD CARE FOR PROFESSIONAL WOMEN FUMES CECILIA WILKINSON OF PONDEL PARSONS & WILKINSON IN LOS ANGELES SOME HELP ALBEIT MILD MAY BE ON THE WAY A HOUSE WAYS AND MEANS COMMITTEE BILL WOULD ALLOW EMPLOYERS TO FILE TAXES AND SOCIAL SECURITY PAYMENTS ANNUALLY RATHER THAN QUARTERLY A LINE ON THE PAYER'S 1040 WOULD ASK ABOUT HOUSEHOLD HELP AND PAYMENT COULD BE MADE THEN BUT THE THRESHOLD FOR WHO MUST FILE WOULDN'T CLIMB MUCH TO 300 A YEAR FROM 50 QUARTERLY THE SKIMPY HIKE WOULD ASSURE THAT THE BILL DOESN'T HURT TAX RECEIPTS A COMMITTEE AIDE SAYS OF THE PROVISION WHICH WAS PART OF A BILL BUSH VETOED IN 1992 THE CHECKOFF FORTYSEVEN PERCENT OF LAIDOFF BANKERS FOUND THEIR NEXT JOB OUTSIDE THE INDUSTRY A STUDY OF 1200 BANKERS BY LEE HECHT HARRISON SHOWS THREE OF FIVE MEN WOULD DATE COWORKERS IF THEY WERE UNMARRIED A GALLUP POLL BY ACCOUNTANTS ON CALL SAYS BUT ONLY 36 OF WOMEN WOULD PENNWALT CORP A SUBSIDIARY OF SOCIETE NATIONALE ELF AQUITAINE MERGED WITH TWO OTHER COMPANIES IN 1990 AND IS NOW KNOWN AS ELF ATOCHEM NORTH AMERICA INC IN TUESDAY'S LABOR LETTER THE COMPANY WAS INCORRECTLY IDENTIFIED BY ITS OLD NAME 9302160102 930216 SEARS ISSUES FIRE WARNING ON CERTAIN DISHWASHERS WASHINGTON REUTER SEARS ROEBUCK & CO WARNED OF A POSSIBLE FIRE HAZARD IN 21 MODELS OF ITS POPULAR KENMORE DISHWASHER TELLING CONSUMERS WHO BOUGHT THE MACHINES TO IMMEDIATELY TURN THEM OFF AND CALL FOR FREE SERVICE ELECTRICAL SHORTS AND OVERHEATING HAVE CAUSED TIMER FAILURES IN 21 MODELS SOLD SINCE FEBRUARY 1990 ABOUT 30 OF THE 400000 UNITS SOLD HAVE HAD TIMER FAILURES AND FOUR HAVE DEVELOPED FIRES RESULTING IN SMOKE DAMAGE TO KITCHENS SEARS AND THE CONSUMER PRODUCT SAFETY COMMISSION SAID IN A STATEMENT NO INJURIES HAVE BEEN REPORTED SEARS SAID SEARS SAID IT IS WORKING CLOSELY WITH FRIGIDAIRE CO THE MANUFACTURER OF THE DISHWASHER AND SUPPLIER OF NECESSARY NEW PARTS TO RESPOND QUICKLY TO CONSUMER SERVICE REQUESTS SEARS WILL ADD ADDITIONAL TECHNICIANS FOR SERVICE CALLS ON FEB 6 SEARS STARTED SENDING LETTERS TO MORE THAN 300000 CUSTOMERS WHO BOUGHT ONE OF THE AFFECTED MODELS FROM FEBRUARY 1990 TO OCTOBER 1992 OWNERS OF THE MODELS SHOULD STOP USING THE DISHWASHER IMMEDIATELY AND TURN THE POWER OFF OR UNLATCH THE MACHINE DOOR UNTIL THE COMPANY LOOKS AT IT THE PROBLEM STEMS FROM THE POSSIBILITY DISHWASHERS CAN DEVELOP AN INTERNAL LEAK THAT MAY CAUSE THE TIMER TO SHORT OUT AND OVERHEAT IN CERTAIN CONDITIONS AN OVERHEATED TIMER CAN CAUSE A FIRE 9302160101 930216 REAL ESTATE BY JIM CARLTON SALES OF MOBILE HOMES BUOYED BY A RESURGENCE IN THEIR HARDESTHIT MARKET THE OIL PATCH PICKED UP LAST YEAR AFTER AN EIGHTYEAR SLIDE THE MANUFACTURED HOUSING INSTITUTE A TRADE GROUP BASED IN ARLINGTON VA SAYS MOBILEHOME SHIPMENTS BY MANUFACTURERS ROSE 23 LAST YEAR TO 211000 UNITS FROM A 27YEAR LOW OF 171000 UNITS IN 1991 THE DOLLAR VALUE OF SHIPMENTS ALSO JUMPED 23 TO 588 BILLION SHIPMENTS HAD FALLEN STEADILY FROM 295100 UNITS IN 1983 CRIPPLED BY THE ENERGY BUST IN THE SOUTHERN STATES ONE OF THE BIGGEST MARKETS FOR MOBILE HOMES IN THAT PERIOD THE NUMBER OF MOBILE HOME MANUFACTURERS FELL BY HALF AMID SEVERE PRICE COMPETITION AND A GLUT OF HOMES LEFT BY REPOSSESSIONS IN TEXAS WHICH ONCE ACCOUNTED FOR NEARLY A FIFTH OF ALL US MOBILEHOME SALES SHIPMENTS PLUMMETED TO A LOW OF 3500 IN 1989 FROM 43900 IN 1982 BUT DEMAND HAS REBOUNDED IN THE OIL PATCH MOBILEHOME SALES ROSE 49 LAST YEAR IN THE SOUTHCENTRAL STATES STRETCHING FROM ALABAMA TO OKLAHOMA IN TEXAS SHIPMENTS MORE THAN DOUBLED FROM 1991 WITH APARTMENT CONSTRUCTION VIRTUALLY SHUT DOWN AS A MAIN COMPETITOR TO MOBILE HOMES AND WITH MANY OF THE REPOSSESSED MOBILE HOMES FINALLY OFF THE MARKET DEMAND HAS SURGED IN ALL REGIONS EXCEPT THE RECESSIONRACKED WEST PRIMARILY CALIFORNIA JOE OWENS VICE PRESIDENT OF THE MANUFACTURED HOUSING INSTITUTE CAUTIONS THAT THE INDUSTRY ISN'T LIKELY TO RETURN TO SUSTAINED DOUBLEDIGIT GROWTH RATES ANYTIME SOON HE EXPECTS STEADY BUT MODERATE GROWTH FOR A FEW YEARS THE SOUTHERN CALIFORNIA HOUSING MARKET GETS A FRESH DOSE OF GLOOM FROM A NEW ECONOMIC REPORT SEVEN OF THE 10 WORSTPERFORMING MARKETS IN CALIFORNIA WILL BE CONCENTRATED IN THE TROUBLED SOUTHERN END OF THE STATE THROUGH 1996 ACCORDING TO A REPORT BY REGIONAL FINANCIAL ASSOCIATES A WEST CHESTER PA CONSULTING FIRM EXISTINGHOME PRICES IN SOUTHERN CALIFORNIA WILL DROP AS MUCH AS 38 ANNUALLY THROUGH THE PERIOD OR A TOTAL OF 15 FROM CURRENT LEVELS ALREADY PRICES HAVE FALLEN AS MUCH AS 25 IN THE HARDESTHIT AREAS OF SOUTHERN CALIFORNIA THE 10 HEALTHIEST MARKETS IN THE GOLDEN STATE BY CONTRAST WILL BE BUNCHED IN NORTHERN CALIFORNIA ACCORDING TO THE REPORT ANNUAL PRICE INCREASES OF 18 TO 42 ARE FORECAST THROUGH 1996 FOR SACRAMENTO FRESNO STOCKTON AND OTHER LOCALES THE REGIONS' OUTLOOKS ARE SO DIFFERENT BECAUSE NORTHERN CALIFORNIA HASN'T BEEN HIT WITH THE SAME MAGNITUDE OF JOB LOSSES AS SOUTHERN CALIFORNIA WHICH ACCOUNTS FOR NEARLY 90 OF EMPLOYMENT CUTBACKS IN THE STATE ACCORDING TO A FEDERAL RESERVE STUDY THE PROBLEMS IN THE SOUTH INFLUENCE THE ENTIRE STATE HOWEVER BECAUSE IT REPRESENTS THE MAJORITY OF POPULATION AND JOBS WITH THE DEFENSE INDUSTRY EXPECTED TO CONTINUE SHRINKING MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL SAYS TOTAL EMPLOYMENT STATEWIDE WON'T RECOVER TO ITS 1990 PEAK OF 128 MILLION BEFORE 1996 AND THREE MAJOR METRO AREAS LOS ANGELES ANAHEIM AND SAN JOSE WON'T HAVE RECOVERED EVEN THEN MR ZANDI SAYS IN ITS THREEYEAR RECESSION CALIFORNIA HAS LOST 700000 JOBS ACCORDING TO STATE OFFICIALS CALIFORNIA REALESTATE BROKERS ACKNOWLEDGE THAT THE SOUTHERN CALIFORNIA RESIDENTIAL MARKET REMAINS WEAK BUT THEY DISPUTE THE SEVERITY OF PROJECTED PRICE DECLINES CITING A REBOUND IN SALES STATEWIDE THE PAST FEW MONTHS THEY SAY SOUTHERN CALIFORNIA SHOULD FOLLOW THE REST OF THE STATE'S HOUSING MARKET IN RECOVERY THROUGH AT LEAST NEXT YEAR WE'RE ENCOURAGED SAYS WALT MCDONALD PRESIDENT OF THE CALIFORNIA ASSOCIATION OF REALTORS UNIVERSITIES ARE TEAMING WITH PRIVATE DEVELOPERS TO SET UP RETIREMENT VILLAGES ON OR NEAR CAMPUS ENABLING SENIORS TO RETURN TO SCHOOL AS MANY AS 15 UNIVERSITIES AROUND THE COUNTRY INCLUDING DARTMOUTH COLLEGE IOWA STATE UNIVERSITY AND THE UNIVERSITY OF VIRGINIA HAVE AFFILIATED WITH DEVELOPERS IN RECENT YEARS TO BUILD RETIREMENT VILLAGES OTHER SCHOOLS INCLUDING STANFORD AND CORNELL HAVE SUCH CENTERS IN THE WORKS THE ALLIANCES ALLOW DEVELOPERS TO DRAW ON LARGE POOLS OF ALUMNI AND RETIRED FACULTY TO FILL THE HOUSING UNITS FOR A COLLEGE AN ONPREMISES RETIREMENT CENTER PROVIDES A LIVING LABORATORY INTO RESEARCH ON AGING AND MORE IMPORTANT AN ADDITIONAL SOURCE OF REVENUE IT'S A REAL WIN FOR EVERYONE INVOLVED SAYS DAVID SCHLESS EXECUTIVE DIRECTOR OF THE AMERICAN SENIORS HOUSING ASSOCIATION AN ARM OF THE NATIONAL MULTI HOUSING COUNCIL TRADE GROUP BUT THE DEVELOPMENTS AREN'T ALWAYS PROBLEMFREE AT STANFORD THE UNIVERSITY AND LOCAL DEVELOPERS ARE WORKING TO OVERCOME NEIGHBORS' CONCERNS ABOUT NOISE AND TRAFFIC THAT COULD RESULT FROM THE BUILDING OF A PLANNED 500UNIT DEVELOPMENT ON 20 ACRES OF VACANT LAND UNIVERSITY LAND IS OFTEN LEASED RATHER THAN SOLD FOR SUCH DEVELOPMENTS WHICH CAN MAKE FINANCING TRICKY MANY LENDERS ARE UNCOMFORTABLE BACKING CONSTRUCTION WHEN THE LAND ISN'T OWNED BY THE ENTITY DEVELOPING THE PROJECT THE STANFORD DEVELOPERS ARE TRYING TO SECURE FINANCING AND HOPE TO START CONSTRUCTION WITHIN TWO YEARS MIDTOWN NEW YORK REMAINS THE COSTLIEST US MARKET FOR NEW OFFICE SPACE DESPITE A DROP TO AN AVERAGE OF 4475 A SQUARE FOOT FOR RENT LAST YEAR FROM 47 IN 1991 ACCORDING TO JULIEN J STUDLEY INC COMMERCIAL BROKERS IN NEW YORK HOUSTON UNCHANGED AT 19 A SQUARE FOOT LAST YEAR IS THE CHEAPEST OF 13 MAJOR MARKETS SURVEYED THE AVERAGE VALUE OF A NEW YORK CITY COOP APARTMENT FELL 14 TO 54430 LAST YEAR REPORTS THE NATIONAL COOPERATIVE BANK WHICH PROVIDES FINANCING FOR REALESTATE COOPERATIVES THAT WAS A SMALLER DROP THAN THE 18 DECLINE IN 1991 9302160100 930216 FOODMAKER DELAYS EXPANSION PLANS IN WAKE OF FOODPOISONING OUTBREAK BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO FOODMAKER INC IS DELAYING ITS EXPANSION PLANS IN THE WAKE OF AN OUTBREAK OF FOOD POISONING FROM HAMBURGERS SOLD AT ITS JACK IN THE BOX CHAIN OF FASTFOOD RESTAURANTS IN THE PACIFIC NORTHWEST AND NEVADA FOODMAKER CHAIRMAN JACK W GOODALL JR TOLD SHAREHOLDERS AT THE ANNUAL MEETING HERE FRIDAY THAT THE JACK IN THE BOX UNIT HAS DEFERRED ALL CAPITAL EXPENDITURES FOR THE NEAR TERM THUS DELAYING PLANS TO OPEN 85 NEW STORES THIS YEAR A SPOKESWOMAN SAID THE COMPANY MAY RESUME ITS EXPANSION LATER IN 1993 AFTER IT DETERMINES THE IMPACT OF THE OUTBREAK UNDERCOOKED JACK IN THE BOX HAMBURGERS CAUSED AN OUTBREAK OF A BACTERIAL INFECTION THAT HAS LEFT A TWOYEAROLD TACOMA WASH BOY DEAD AND MORE THAN 450 PEOPLE SERIOUSLY ILL IN WASHINGTON STATE IDAHO AND NEVADA AT LEAST ONE CHILD KNOWN TO HAVE EATEN SUCH A HAMBURGER REMAINED ON A LIFESUPPORT SYSTEM AT A SEATTLE HOSPITAL OVER THE WEEKEND A FOODMAKER SPOKESWOMAN SAID THAT AS OF FRIDAY EIGHT LAWSUITS HAD BEEN FILED AGAINST THE COMPANY IN CONNECTION WITH THE OUTBREAK FOODMAKER IN TURN IS SUING ITS SUPPLIER VONS COS OF ARCADIA CALIF AND VONS'S MEAT SUPPLIERS ALLEGING THOSE COMPANIES ARE LIABLE FOR ANY LOSSES SUSTAINED BY JACK IN THE BOX RELATED TO THE OUTBREAK SUCH LOSSES WOULD INCLUDE COSTS OF DEFENDING AND PAYING DAMAGES IN LAWSUITS FILED BY PEOPLE WHO ATE THE HAMBURGERS AS WELL AS ALL LOST JACK IN THE BOX BUSINESS THE SUIT SAYS THE FOODMAKER SPOKESWOMAN SAID THE COMPANY HAS 100 MILLION IN INSURANCE TO COVER THE OUTBREAK WHICH HAS COST THE COMPANY ABOUT 2 MILLION SO FAR AT THE ANNUAL MEETING AND AT A NEWS CONFERENCE AFTERWARD ROBERT J NUGENT JR PRESIDENT OF JACK IN THE BOX AND A FOODMAKER EXECUTIVE VICE PRESIDENT CONCEDED HE WAS WRONG WHEN HE SAID LAST MONTH THAT THE COMPANY WASN'T INFORMED OF A NEW WASHINGTON STATE COOKING STANDARD BUT HE SAID THAT WITHOUT EVEN TRYING THE CHAIN HAD LIKELY COME CLOSE TO COMPLIANCE WITH THE STATE REGULATION MR NUGENT SAID THE COMPANY RECEIVED IN MAY 1992 A BULLETIN FROM THE BREMERTONKITSAP COUNTY HEALTH DEPARTMENT IN WASHINGTON NOTIFYING IT THAT THE STATE HAD INCREASED THE REQUIRED TEMPERATURE OF GRILLS TO 155 DEGREES FAHRENHEIT UP FROM THE FEDERAL STANDARD OF 140 DEGREES THE BULLETIN DETAILING THE NEW STANDARD HAD BEEN IN THE COMPANY'S FILES AT ITS CORPORATE HEADQUARTERS HERE SINCE THAT TIME EIGHT MONTHS BEFORE THE OUTBREAK MR NUGENT SAID A JACK IN THE BOX RESTAURANT IN TACOMA ALSO RECEIVED A COPY OF THE REGULATION BY MAIL MR NUGENT SAID IT WAS THE RESPONSIBILITY OF THE COMPANY'S VICE PRESIDENT OF TECHNICAL SERVICES TO BRING THE NEW COOKING STANDARD TO THE ATTENTION OF SENIOR MANAGEMENT BUT THE VICE PRESIDENT HADN'T DONE SO HE DECLINED TO GIVE THE VICE PRESIDENT'S NAME MR NUGENT SAID FOODMAKER HAD NOT YET DECIDED WHAT DISCIPLINARY ACTION IF ANY WOULD BE TAKEN AGAINST THE VICE PRESIDENT FOODMAKER LAWYERS SAY THAT THEY INTEND TO DEFEND THE COMPANY AGAINST VARIOUS CHARGES BY ATTEMPTING TO PROVE IN COURT THAT HAMBURGERS WERE COOKED ON AVERAGE TO WITHIN A DEGREE OF THE NEW WASHINGTON STATE REGULATION WE DO COOKING TESTS THROUGHOUT THE YEAR IN OUR CORPORATE OFFICES ON A GRILL THAT IS JUST LIKE THE GRILLS IN OUR STORES USING THE SAME ELECTRONIC EQUIPMENT THAT CALIBRATES THE GRILL AND THE SAME TIMERS AND THE SAME HAMBURGER PATTIES MR NUGENT TOLD REPORTERS AND THOSE STUDIES FOR ALL OF 1992 SHOW AN AVERAGE COOKING TEMPERATURE OF 154 DEGREES FOODMAKER HAS AGREED TO PAY HOSPITAL COSTS OF ANY PERSON WHOSE ILLNESS IS LINKED TO JACK IN THE BOX WITHOUT REQUIRING THE INDIVIDUAL TO WAIVE HIS RIGHTS TO FILE A LAWSUIT A LAWYER FOR FOODMAKER MICHAEL T THORSNES SAID THE COMPANY'S MAIN INSURER CHICAGOBASED CNA IS IN THE PROCESS OF SELECTING COUNSEL TO DEFEND THE ACTIONS RELATED TO THE OUTBREAK HE SAID NO RESPONSES TO THE SUITS HAVE BEEN FILED YET JACK IN THE BOX IS THE THIRDLARGEST FASTFOOD CHAIN IN THE US WITH 1151 DOMESTIC OUTLETS ONE IN HONG KONG AND THREE IN MEXICO FOODMAKER'S SHAREHOLDER MEETING BEGAN SHORTLY AFTER THE CLOSE OF TRADING FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY FOODMAKER STOCK CLOSED AT 10 A SHARE DOWN 25 CENTS 9302160099 930216 BUSINESS BRIEF FLETCHER CHALLENGE LTD CANADA UNIT'S PULP OUTPUT TO BE HALTED TEMPORARILY FLETCHER CHALLENGE CANADA LTD SAID IT WILL TEMPORARILY HALT PRODUCTION OF MARKET PULP AT ITS CROFTON MILL ON VANCOUVER ISLAND IN THE FACE OF SEVERELY OVERSUPPLIED WORLD MARKETS AND A SHARP DROP IN PRICES THE STOPPAGE FROM MARCH 16 TO APRIL 2 WILL REMOVE 15000 METRIC TONS FROM PRODUCTION THE VANCOUVER BRITISH COLUMBIA FORESTPRODUCTS COMPANY SAID FLETCHER IS A UNIT OF FLETCHER CHALLENGE LTD OF NEW ZEALAND THE MOVE CAME A DAY AFTER MONTREALBASED CANADIAN PACIFIC FOREST PRODUCTS LTD ANNOUNCED IT WILL SHUT DOWN INDEFINITELY PRODUCTION OF MARKET PULP AT A QUEBEC MILL 9302160098 930216 IBM TO TRIM SALES FORCE SOME LAYOFFS ARE POSSIBLE ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP RELEASED THE DETAILS OF ITS PLAN TO ELIMINATE ABOUT 7000 JOBS FROM ITS US SALES OPERATION AND SAID THAT SOME OF THOSE WORKERS COULD BE LAID OFF WHILE IT IS ANTICIPATED THAT SOME OF THE RESOURCE REDUCTIONS WILL BE RESOLVED VOLUNTARILY INVOLUNTARY REDUCTIONS MAY OCCUR IN SOME GEOGRAPHIC AND BUSINESS AREAS A COMPANY RELEASE STATED IBM SAID THE DEPARTURE PACKAGE INCLUDES UP TO A YEAR'S SALARY A YEAR OF MEDICAL INSURANCE CAREER TRANSITION ASSISTANCE AND UP TO 2500 IN RETRAINING ASSISTANCE REIMBURSEMENT THE DEPARTING DATE FOR EMPLOYEES WHO LEAVE UNDER THE PROGRAM IS JUNE 30 THE LATEST ANNOUNCEMENT REFLECTED AN INCREASE IN THE NUMBER OF WORKERS IBM PLANNED TO CUT FROM THE US SALES FORCETHE COMPANY HAD EARLIER PREDICTED REDUCTIONS BETWEEN 4000 TO 6000 IN 1993 A COMPANY SPOKESWOMAN SAID IBM DOESN'T HAVE PLANS FOR ANY MORE STAFF CUTBACKS BUT SAID MORE COULD OCCUR IF BUSINESS CONDITIONS DETERIORATE 9302160097 930216 TECHNOLOGY NEW INTEL CHIP SAMPLES MIMIC BRAIN FUNCTIONS SANTA CLARA CALIF INTEL CORP SAID IT HAS BEGUN SHIPPING SAMPLES OF AN EXPERIMENTAL CHIP WHICH HELPS COMPUTERS MIMIC THE BASIC FUNCTIONS OF THE HUMAN BRAIN INTEL AND NESTOR INC A COMPUTER DEVELOPMENT COMPANY IN PROVIDENCE RI HAVE BEEN DEVELOPING THE NEURAL NETWORK CHIP WHICH THEY HOPE WILL SOMEDAY HELP COMPUTERS PERFORM PROCESSES THAT ARE ANALOGOUS TO HUMANS' LEARNING BY EXPERIENCE SUCH A CHIP PROMISES TO HELP COMPUTERS BETTER PROCESS DATA BY ALLOWING THEM TO SEE LISTEN AND THINK INTEL SAID THE CHIP HAS MORE THAN THREE MILLION TRANSISTORS THE SEMICONDUCTOR MAKER HAS YET TO FIND A WIDESPREAD MARKET FOR THE CHIP BEYOND NICHE EXPERIMENTAL APPLICATIONS RESEARCHERS HAVE BEEN WORKING ON SUCH TECHNOLOGY FOR SEVERAL YEARS WORK ON THE CHIP BY INTEL AND NESTOR BEGAN AFTER RECEIVING A GRANT FROM THE FEDERAL GOVERNMENT'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY IN 1990 9302160096 930216 UNILEVER WINS PATENT CASE AGAINST P&G IN CANADA OTTAWA UNILEVER PLC WON THE LATEST ROUND OF A LONGRUNNING PATENT DISPUTE WITH PROCTER & GAMBLE CO WHEN A CANADIAN JUDGE ORDERED P&G TO PAY IT ROYALTIES ON SALES OF CANADIANMADE BOUNCE FABRIC SOFTENER UNILEVER HAD ALLEGED THAT THE FABRIC SOFTENER INFRINGED ITS CHEMICAL PATENTS IN CANADA IN THE US THE TWO COMPANIES REACHED A SETTLEMENT IN 1989 THAT REQUIRED CINCINNATIBASED P&G TO PAY ROYALTIES TO UNILEVER ON ITS BOUNCE SALES CANADIAN FEDERAL COURT JUDGE FRANCIS MULDOON UPHELD THE ANGLODUTCH CONCERN'S PATENT CLAIM BUT CRITICIZED BOTH COMPANIES FOR NOT AGREEING TO EXTEND THE US SETTLEMENT TO CANADA SUCH A MOVE WOULD HAVE SAVED THE COURT TIME AND AVOIDED A LONG AND TECHNICAL HEARING THAT A JUDGE LIKE HIMSELF WAS ILLEQUIPPED TO RULE UPON HE SAID JUDGE MULDOON ORDERED P&G TO PAY UNILEVER ROYALTIES ON ALL SALES OF CANADIANMADE BOUNCE FROM 1977 THE YEAR P&G INTRODUCED THE PRODUCT IN CANADA TO 1994 WHEN UNILEVER'S PATENT EXPIRES A REFEREE IS TO BE APPOINTED TO SET THE ROYALTIES HOWEVER THE JUDGE DENIED UNILEVER'S REQUEST FOR AN ORDER TO STOP P&G FROM PRODUCING BOUNCE IN CANADA P&G'S CANADIAN UNIT DECLINED TO COMMENT ON THE CASE 9302160095 930216 FINANCING BUSINESS ICH CORP ICH CORP LOUISVILLE KY SAID IT WILL REDEEM 375 MILLION OF THE INSURANCE COMPANY'S 165 SENIOR SUBORDINATED DEBENTURES DUE 1994 IT WILL REDEEM THEM ON MARCH 31 AT A PRICE EQUAL TO 10184 OF PAR VALUE PLUS ACCRUED INTEREST 9302160094 930216 INTERNATIONAL UAE TO BUY FRENCH TANKS IN 35 BILLION TRANSACTION PARIS REUTER THE UNITED ARAB EMIRATES THREW FRANCE'S ARMS INDUSTRY A LIFELINE BY BUYING 35 BILLION OF FRENCH TANKS BUT THE DEAL WON'T HALT THE SECTOR'S GRADUAL DECLINE DEFENSE ANALYSTS SAID THE UAE SAID IT WOULD BUY 390 LECLERC TANKS AND 46 ARMORED VEHICLES FROM FRANCE'S STATEOWNED GIAT INDUSTRIES THE DEAL FURTHER BOOSTS THE REGION'S REARMAMENT SPREE SINCE THE GULF WAR THIS IS A HUGE CONTRACT AND IT IS GOOD NEWS FOLLOWING TAIWAN'S MIRAGE ORDER SAID AN ANALYST AT A FRENCH BROKERAGE HOUSE REFERRING TO TAIWAN'S DECISION LATE LAST YEAR TO BUY 60 DASSAULT AVIATION MIRAGE 20005 FIGHTERS IN A DEAL VALUED AT 67 BILLION BUT HE LIKE OTHER ANALYSTS SAID IT DOESN'T CHANGE THE FACT THAT MOST MILITARY BUDGETS ARE BEING TRIMMED AROUND THE WORLD GIAT LAUNCHED A PUBLICITY CAMPAIGN TO SAVE THE LECLERC 18 MONTHS AGO SAYING IT WOULD CUT 3000 JOBS AND CLOSE THREE PLANTS BY THE END OF 1993 IF FRANCE DID NOT ORDER ENOUGH TANKS STILL A MEMBER OF GIAT'S WORKERMANAGEMENT COMMITTEE TOLD FRENCH TV THAT THE UAE CONTRACT WOULDN'T STOP GIAT FROM CUTTING 2600 EMPLOYEES THIS YEAR A SPOKESWOMAN FOR GIAT DECLINED TO COMMENT ON WHAT EFFECT THE ORDER WOULD HAVE ON EMPLOYMENT 9302160093 930216 INTERNATIONAL MOST GERMANS WANT NATION TO TAKE ACTIVE GLOBAL ROLE BONN THE GERMAN PUBLIC HAS RACED AHEAD OF GOVERNMENT LEADERS IN ITS WILLINGNESS TO TAKE ON A MORE ACTIVE INTERNATIONAL ROLE AT THE SAME TIME HOWEVER A NEW SURVEY SHOWS THE PUBLIC HAS GROWN INCREASINGLY OPPOSED TO A SUPERNATIONAL EUROPE SOME 60 FINDING THAT EUROPEANS IN GENERAL HAVE DIVERGENT INTERESTS WHILE ONLY 10 FIND THEY HAVE COMMON INTERESTS THE SURVEY TO BE RELEASED TODAY SHOWS THAT MORE THAN 60 OF GERMANS WANT THEIR COUNTRY TO TAKE A MORE ACTIVE WORLD ROLE A SURPRISING THREEFOURTHS OF RESPONDENTS WANT THE NORTH ATLANTIC TREATY ORGANIZATION TO RESPOND TO CRISES OUTSIDE ALLIANCE BOUNDARIES SUCH AS IN FORMER YUGOSLAVIA AND THAT A MAJORITY WOULD BACK GERMAN TROOP INVOLVEMENT IN UNITED NATIONS PEACEKEEPING MISSIONS THE GERMAN GOVERNMENT HAS ARGUED THAT IT'S LIMITED IN THE HELP IT CAN PROVIDE UNSPONSORED MISSIONS DUE TO PUBLIC OPPOSITION THE SURVEY WAS FUNDED BY THE US AIR FORCE AND CONDUCTED BY RAND CORP OF SANTA MONICA CALIF AND INFRATEST BURKE BERLIN 9302160092 930216 US ATTORNEY IS CLEARED OF GUINNESS CASE CHARGE LONDON ANOTHER CHAPTER OF THE LONGRUNNING GUINNESS PLC AFFAIR ENDED WHEN US ATTORNEY THOMAS WARD WAS CLEARED OF ALLEGED MISCONDUCT IN THE 1986 TAKEOVER OF DISTILLERS CO MR WARD HAD ACTED AS AN ADVISER TO GUINNESS A GIANT BEVERAGE COMPANY AND ITS THENCHIEF EXECUTIVE ERNEST SAUNDERS DURING THE BITTERLY CONTESTED MULTIBILLION DOLLAR TAKEOVER FIGHT DURING A FIVEWEEK TRIAL PROSECUTORS HAD ALLEGED THAT MR WARD WITH MR SAUNDERS HAD PLANNED TO MISAPPROPRIATE AND SPLIT SEVERAL MILLION POUNDS IN GUINNESSRELATED FEES ATTORNEYS FOR MR WARD SAID ANY MONEY RECEIVED BY MR WARD WAS A LEGITIMATE PAYMENT FOR HIS ROLE IN THE HARDFOUGHT TAKEOVER BID IT FULLY REFLECTED A CONTRIBUTION MADE BY MR WARD IN THIS HUGELY IMPORTANT BUSINESS TRANSACTION SAID ANDREW TROLLOPE MR WARD'S ATTORNEY MR WARD'S ACQUITTAL BRINGS TO AN END THE MAIN PORTION OF LEGAL PROCEEDINGS STEMMING FROM THE GUINNESS CASE AT LEAST FOUR CASES RELATED TO THE GUINNESS TAKEOVER HAVE BEEN BROUGHT BY BRITAIN'S SERIOUS FRAUD OFFICE THE FIRST TRIAL IN 1990 RESULTED IN GUILTY VERDICTS AGAINST MR SAUNDERS AND SEVERAL OTHERS IN AN INTERVIEW YESTERDAY MR WARD SAID I FEEL VERY GOOD I WAS INNOCENT OF THE CHARGES 9302160091 930216 FINANCING BUSINESS HILLSIDE BEDDING INC HILLSIDE BEDDING INC NEW YORK LAUNCHED AN INITIAL PUBLIC OFFERING OF 310000 EQUITY UNITS AT 1720 A UNIT FOR A TOTAL OF 53 MILLION EACH UNIT OF THE RETAIL BEDDING CHAIN CONSISTS OF ONE COMMON SHARE ONE PREFERRED SHARE AND TWO WARRANTS THE FIRST WARRANT TO PURCHASE ONE COMMON SHARE IS EXERCISABLE FOR FIVE YEARS FROM THIS PAST FRIDAY THE SECOND WARRANT ATTACHED TO THE PREFERRED SHARE IS EXERCISABLE FOR FOUR YEARS BEGINNING FEB 12 1994 BOTH WARRANTS ALLOW FOR THE SHARES TO BE BOUGHT AT 840 A SHARE HILLSIDE SAID IT WILL USE PROCEEDS OF THE OFFERING TO REFINANCE DE BT FUND AN EXPANSION AND PROVIDE WORKING CAPITAL THE UNITS COMMON STOCK PREFERRED STOCK AND WARRANTS WILL TRADE SEPARATELY IN THE OVERTHECOUNTER MARKET 9302160090 930216 COMMODITIES HIGHER FUTURES PRICES FOR MANY COMMODITIES ARE BEGINNING TO RAISE INFLATIONARY CONCERNS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IS THERE A SCENT OF INFLATION IN COMMODITY PRICES THESE DAYS NOTHING TO GET ALARMED ABOUT EXPERTS SAY BUT STAY TUNED AFTER MONTHS OF GENERALLY STABLE TO WEAKER FUTURES PRICES IN A HOST OF IMPORTANT RAW MATERIALS A RALLY IS UNDER WAY IN LUMBER LIVESTOCK COTTON PLATINUM AND PALLADIUM AND THAT MOST PERVASIVE OF ALL COMMODITIES OIL IS SHOWING SIGNS OF STRENGTH AS WELL THE RECENT RALLY IN THOSE COMMODITIES HAS PUSHED THE CLOSELY WATCHED COMMODITY RESEARCH BUREAU INDEX OF 21 FUTURES CONTRACTS BACK ABOVE THE PSYCHOLOGICALLY IMPORTANT 200 LEVEL AFTER THE INDEX HAD SUNK LAST WEEK TO 19846 THE LOWEST POINT SINCE JULY 1986 FRIDAY THE CRB INDEX CLOSED AT 20172 THAT REBOUND SUGGESTS TO BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER THAT THE CRB INDEX WANTS TO GO UP MORE THAN DECLINE THE JUMP IN THE INDEX RAISES SOME INFLATIONARY CONCERNS WHILE THE MOST POPULAR MEASURE OF INFLATION THE BUREAU OF LABOR STATISTICS' CONSUMER PRICE INDEX SHOWS ANNUAL INFLATION JUST BELOW 3 THE LOWEST IN YEARS ANALYSTS POINT OUT THAT IT MEASURES CURRENT OR SPOT PRICES FUTURES INDEXES SUCH AS THE CRB ON THE OTHER HAND ARE REGARDED AS BAROMETERS OF BROAD PRICE TRENDS TO COME TECHNICAL ANALYSTS WHO CHART HISTORICAL PRICE TRENDS ARGUE THAT LAST WEEK'S RISE IN THE CRB INDEX MAY MARK THE END OF THE LONG DECLINE IN OVERALL COMMODITY PRICES LAST WEEK'S REVERSAL IN THE CRB HAS THE POTENTIAL FOR BECOMING A VERY MEANINGFUL BOTTOM OF THE MARKET FROM A TECHNICAL PERSPECTIVE SAYS HUNT TAYLOR MANAGING DIRECTOR OF DUICH INVESTMENTS CO A SAN FRANCISCO COMMODITY TRADING ADVISER THE KEY QUESTION IS ARE THESE RALLIES SUSTAINABLE MR SAVAIKO AND OTHER ANALYSTS SUCH AS JOHN J MURPHY PRESIDENT OF JJM TECHNICAL ADVISORS ARGUE THAT IF THE CRB INDEX RISES THROUGH ITS RECENT HIGH OF 204 IN DECEMBER THEY WOULD BEGIN TO WORRY ABOUT RISING INFLATION BUT OTHER ANALYSTS ARE FAR MORE SANGUINE ABOUT THE INFLATION OUTLOOK THE RALLIES IN SOME COMMODITIES NOTWITHSTANDING THE CRB INDEX IS STILL AT HISTORICALLY LOW LEVELS IT STOOD FOR EXAMPLE AT 212 A YEAR AGO 220 IN OCTOBER 1991 AND AT 245 IN AUGUST 1990 INDEED ARRAYED AGAINST THE LINEUP OF STRONGER INDUSTRIAL COMMODITIES IS A ROSTER OF VERY WEAK PLAYERS FROM THE AGRICULTURAL SECTOR INCLUDING GRAINS SOYBEANS ORANGE JUICE SUGAR AND COCOA WE'RE AN AWFUL LOT CLOSER TO ALLTIME LOWS THAN RECENT HIGHS SAYS WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH ADDS GAIL LEVEY RESEARCH DIRECTOR OF THE COMMODITY RESEARCH BUREAU IN NEW YORK THERE HAS BEEN A SHARP ADVANCE IN THE INDEX BUT IF YOU LOOK AT IT FROM A LONGERTERM PERSPECTIVE WE'RE STILL AT VERY DEPRESSED LEVELS WHILE THE STRENGTHENING ECONOMIC RECOVERY IS BULLISH FOR COMMODITY PRICES AS GROWING DOMESTIC DEMAND FOR HOUSES PULLS UP LUMBER PRICES AND INDUSTRIAL INVESTMENT BOLSTERS COPPER AND OTHER BASE METALS MS LEVEY WARNS THAT IT WOULD BE PREMATURE TO SEE ANY INFLATION BUGBEAR RAISING ITS HEAD EVEN THE RALLIES IN THE INDUSTRIAL COMMODITIES DON'T SCARE MANY ANALYSTS WHO SEE THEM AS PECULIAR INDUSTRYSPECIFIC DEVELOPMENTS THAT POSE NO REAL OVERALL INFLATION THREAT TO THE BROADER ECONOMY THERE'S AN INFLATION SCARE IN THE MARKET BUT I DO NOT THINK OF COMMODITIES TODAY AS HAVING LONGTERM INFLATIONARY INDICATIONS SAYS MR O'NEILL HE SAYS HE WON'T GET WORRIED UNTIL THE CRB PUSHES AT LEAST THROUGH 215 IF YOU LOOK AT THE INDIVIDUAL SUPPLYDEMAND EQUATION FOR COMMODITIES YOU DON'T SEE THE CASE FOR AN ACROSSTHEBOARD RISE IN PRICES RESULTING FROM SHARP INCREASES IN DEMAND HE SAYS HE POINTS OUT THAT ALTHOUGH THE US ECONOMY IS GATHERING STEAM THE OTHER MAJOR INDUSTRIALIZED NATIONS ARE STILL SLUMPING BADLY ESPECIALLY GERMANY AND JAPAN FOR COMMODITIES THAT ARE TRADED AROUND THE WORLD SUCH WEAKNESS VIRTUALLY PRECLUDES A BROADBASED SURGE IN PRICES OIL IS A CASE IN POINT ALTHOUGH CRUDE OIL FUTURES HAVE RECENTLY FIRMED MORE THAN 150 TO LEVELS ABOVE 20 A BARREL THE REASONS HAVE MORE TO DO WITH US TAX POLICY AND WORRIES ABOUT SUPPLIES THAN ANY SURGE IN DEMAND TRADERS EXPECT SOME FORM OF US ENERGYTAX LEGISLATION TO BE IMPLEMENTED SOON AT THE SAME TIME TRADERS WERE CAUTIOUS BEFORE THIS PAST WEEKEND'S CONFERENCE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN THE EVENT THAT THE CARTEL WOULD AGREE TO AND ENFORCE A SIZABLE PRODUCTION CUT EVEN IF WE SEE PRICES MOVE A LITTLE HIGHER WE WOULD STILL EXPECT TO SEE OIL TRADE IN A RELATIVELY NARROW RANGE NO MORE THAN 23 A BARREL HIGHER BECAUSE OF THE THREAT OF IRAQ COMING BACK INTO OPEC SAYS FRED BRILL DIRECTOR OF ENERGY RESEARCH AT PEGASUS ECONOMETRIC GROUP IN HOBOKEN NJ IRAQ IS CURRENTLY BANNED BY THE UNITED NATIONS FROM EXPORTING OIL IF OIL PRICES GO UP SIGNIFICANTLY THAT WOULD HAVE A LARGE EFFECT ON INFLATION MR BRILL CONCEDES BUT I JUST DON'T SEE THAT HAPPENING OVER THE NEXT YEAR OR TWO IN GENERAL THERE'S ENOUGH OIL AROUND MR O'NEILL THE MERRILL STRATEGIST CONCURS TWENTY TO TWENTYONEDOLLAR OIL IS NOT INFLATIONARY OIL HE SAYS IT MIGHT CREEP A LITTLE HIGHER IF OPEC DOES ENOUGH TO CUT PRODUCTION BUT IT PROBABLY WON'T TOP 2150 FOR THE LIGHT SWEET CRUDE TRADED IN THE SPOT FUTURES MARKET IN NEW YORK LUMBER IS THE ONE HOT COMMODITY THAT IS BEING DRIVEN HIGHER BY RUNAWAY DEMAND LUMBER FUTURES PRICES HAVE SOARED THE DAILY LIMIT FOR THREE WEEKS RUNNING IN WHAT HAS BECOME THE BIGGEST BULL MARKET IN LUMBER FUTURES' HISTORY LUMBER MILLS IN CANADA AND THE NORTHWEST US ARE UNABLE TO MEET DEMAND FROM THE HOUSING INDUSTRY IN THE US WHERE CONSTRUCTION OF SINGLEFAMILY HOMES IS ON THE RISE WHILE THE LUMBER PRICE SPIRAL IS DRAMATIC ECONOMISTS SAY IT IS A FAIRLY THIN MARKET AND THUS CAN'T PUSH BROADBASED COMMODITY INDEXES SIGNIFICANTLY HIGHER TIGHTENING SUPPLIES RATHER THAN ACCELERATING DEMAND ACCOUNT PRIMARILY FOR RECENT JUMPS IN OTHER COMMODITIES LAST YEAR'S FLOODS IN PAKISTAN CUT DEEPLY INTO COTTON SUPPLIES THE SEVERE COLD AND HEAVY SNOWFALL IN THE US MIDWEST IS CUTTING INTO LIVESTOCK SUPPLIES AND PRODUCTION INTERRUPTIONS IN THE COMMONWEALTH OF INDEPENDENT STATES ARE DISRUPTING WORLD SUPPLIES OF PLATINUM AND PALLADIUM LAWRENCE KUDLOW CHIEF ECONOMIST AT BEAR STEARNS SAYS HE VIEWS LAST WEEK'S RISE IN THE CRB INDEX NOT AS AN EMERGING INFLATIONARY THREAT BUT AS A SIGN OF PRICE STABILITY BROAD COMMODITY INDEXES ARE ALL SHOWING PRICE STABILITY HE SAYS AND THE UPTICK IN GOLD FROM RECENT SEVENYEAR LOWS AROUND 327 AN OUNCE IS HEALTHY HE SAYS GOLD THE MOTHER OF ALL INFLATION INDICATORS IS FLASHING THE SAME SIGNAL OF BROAD PRICE STABILITY AND THEN THERE ARE THOSE ECONOMISTS WHO PUT LITTLE STORE IN COMMODITIES AND COMMODITY INDEXES AS LEADING INDICATORS OF INFLATION FOR THE SERVICEBASED US ECONOMY COMMODITY PRICES ARE A VERY SMALL PART OF THE INFLATION PICTURE SAYS ALLAN SINAI CHIEF ECONOMIST OF BOSTON CO NOTING THAT THEY REPRESENT ONLY 45 OF THE CONSUMER PRICE INDEX AS A RESULT MR SINAI NOTES BLIPS IN THE CONSUMER PRICE INDEX AND THE COMMODITY RESEARCH BUREAU INDEX HAVE BEEN MISLEADING ON OCCASION THERE HAVE BEEN A NUMBER OF CASES WHEN THE COMMODITY INDEX PICKED UP BUT THEN TURNED OUT TO BE A FALSE ALARM NEITHER THE ECONOMY NOR INFLATION PICKED UP MR SINAI WHO PREFERS TO TRACK MONEY SUPPLY AND CAPACITY UTILIZATION FIGURES SAYS HE EXPECTS INFLATION TO STAY IN A 25 TO 3 RANGE THIS YEAR LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK PRECIOUS METALS ANALYSTS AND TRADERS SAY THEY WILL WATCH CLOSELY THIS WEEK FOR SIGNS OF GOLD SALES BY CENTRAL BANKS AFTER A RUMOR OF SUCH SALES FRIDAY BY THE BANK OF FRANCE HELPED TO PUSH GOLD FUTURES PRICES DOWN SHARPLY AT WEEK'S END GOLD FOR APRIL DELIVERY WHICH HAD CLOSED AT A RECENT HIGH OF 33370 WEDNESDAY CLOSED FRIDAY AT 330 DOWN 270 ON THE DAY TRADERS SAID THE STRONGER DOLLAR HURT GOLD AS DID SOME PROFITTAKING BY COMMODITY FUNDS AND EUROPEANBASED MIDDLE EAST SYNDICATES THE MARKET HAS BEEN CONCERNED ABOUT THE PROSPECT OF CENTRAL BANK SALES FOLLOWING NEWS THIS YEAR THAT THE DUTCH CENTRAL BANK HAD SOLD A MAJOR PART OF ITS BULLION HOLDINGS IN 1992 SPECULATION ABOUT THE BANK OF FRANCE POSSIBLY UNLOADING BULLION INTO THE MARKET CENTERS ON FRENCH GOVERNMENT CONCERNS ABOUT FURTHER SPECULATIVE ATTACKS ON THE FRANC AHEAD OF NEXT MONTH'S FRENCH NATIONAL ELECTIONS BULLION SALES WOULD BOLSTER THE FRENCH NATIONAL BANK'S FOREIGNCURRENCY RESERVES MICHAEL BROWN OF THE WASHINGTONBASED GOLD INSTITUTE SAID HE WAS SKEPTICAL OF THE RUMOR BECAUSE HE SAID FRANCE HAS ALWAYS BEEN A CONSERVATIVE HOLDER OF ITS LARGE BULLION INVENTORY 9302160089 930216 INTERNATIONAL BRIEF PSA PEUGEOT CITROEN AUTOMOBILES CITROEN PLANS TO CUT 1629 JOBS THIS YEAR AUTOMOBILES CITROEN SA ONE OF THE TWO CAR MANUFACTURING DIVISIONS OF FRANCE'S PSA PEUGEOT CITROEN GROUP SAID IT PLANS TO TRIM 1629 JOBS THIS YEAR IN A BID TO IMPROVE PRODUCTIVITY AND REDUCE COSTS THREEQUARTERS OF THE JOB CUTS WILL AFFECT WHITECOLLAR WORKERS AT EIGHT CITROEN ESTABLISHMENTS IN FRANCE THE COMPANY WILL TRY TO AVOID OUTRIGHT LAYOFFS BY A VARIETY OF MEANS INCLUDING INTRAGROUP TRANSFERS EARLY RETIREMENT AND PARTTIME EMPLOYMENT THE COMPANY SAID THE OUTLOOK FOR 1993 INCREASING COMPETITIVE PRESSURE AND THE OPENING OF THE EUROPEAN MARKET TO JAPANESE VEHICLES MAKE IT NECESSARY TO REDUCE COSTS BY CONTINUED PRODUCTIVITY GAINS PSA PEUGEOT CITROEN CHAIRMAN JACQUES CALVET HAS SET THE GROUP AN AMBITIOUS TARGET OF IMPROVING PRODUCTIVITY BY 12 ANNUALLY 9302160088 930216 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION APPLIED SIGNAL TECHNOLOGY INC AN INITIAL OFFERING OF 22 MILLION COMMON SHARES VIA OWEN & CO EMC CORP AN OFFERING OF 45 MILLION COMMON SHARES SMITH BARNEY HARRIS UPHAM & CO AND MERRILL LYNCH & CO ETHICAL HOLDINGS LTD AN INITIAL OFFERING OF 25 MILLION OF AMERICAN DEPOSITARY SHARES VIA VOLPE WELTY & CO AND NEEDHAM & CO INC SUPERMAC TECHNOLOGY INC AN OFFERING OF 1 MILLION SHARES OF ITS COMMON STOCK TOLL BROTHERS INC AN OFFERING OF 50 MILLION OF CONVERTIBLE SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO AND PAINEWEBBER INC WCT COMMUNICATIONS INC AN OFFERING OF 32 MILLION COMMON SHARES VIA OPPENHEIMER & CO INC AND SUTRO & CO INC 9302160087 930216 SALOMON INC IS SEEN SELLING FOUR REFINERIES FURTHER RETREAT FROM OIL IS EXPECTED BY ANALYSTS AFTER 2 YEARS OF LOSSES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC STUNG BY TWO YEARS OF LOSSES IN ITS ENERGY OPERATIONS IS LIKELY TO SELL ITS FOUR REFINERIES IN A FURTHER RETREAT FROM THE OIL BUSINESS SOME ANALYSTS SAY SALOMON RECENTLY MERGED PHIBRO ENERGY INC ITS OILREFINING AND COMMODITYTRADING UNIT INTO SALOMON AND SLASHED PHIBRO'S STAFF AND INTERNATIONAL OILPRODUCTS TRADING OPERATION IN THE PAST TWO YEARS PHIBRO HAS POSTED PRETAX LOSSES TOTALING NEARLY 300 MILLION PARTLY REFLECTING RAZORTHIN REFINING MARGINS AND WEAK GLOBAL DEMAND FOR PETROLEUM PRODUCTS SALOMON OFFICIALS TOLD ANALYSTS AND INSTITUTIONAL INVESTORS AT A MEETING LATE LAST WEEK THAT THE REFINING BUSINESS IS LIKELY TO REMAIN DIFFICULT THE OFFICIALS SAID IT HAS COST SOME OTHER COMPANIES 500 MILLION TO UPGRADE THEIR REFINERIES THOUGH THE OFFICIALS SAID SALOMON WOULDN'T SPEND THAT MUCH EITHER WAY SOME ANALYSTS DON'T EXPECT SALOMON TO KEEP ITS REFINERY OPERATIONS FOR LONG I DON'T THINK THEY'LL MAKE THAT KIND OF INVESTMENT SAYS JAMES HANBURY A BROKERAGE ANALYST AT WERTHEIM SCHRODER & CO REFINING WILL BE SOLD SALOMON FOR ITS PART DOESN'T RULE OUT SELLING THE REFINERIES WHICH HAVE ABOUT 300000 BARRELS OF DAILY CAPACITY AND MAKE SALOMON THE NATION'S FOURTHLARGEST INDEPENDENT REFINER SALOMON ALSO COULD SPIN OFF THE REFINERY OPERATIONS TO SHAREHOLDERS OR ENTER INTO A JOINT VENTURE TO CONTINUE RUNNING THEM SELLING THE REFINERIES IS AN OPTION THAT WILL BE CONSIDERED A SENIOR PHIBRO EXECUTIVE SAYS EVEN AFTER A REFINERY SALE OR SPINOFF SALOMON WOULD REMAIN A PLAYER IN THE OIL BUSINESS PHIBRO ENERGY WOULD STILL TRADE CRUDE OIL PETROCHEMICALS AND NATURAL GAS AMONG OTHER COMMODITIES AND ITS PHIBRO ENERGY PRODUCTION INC DIVISION WOULD CONTINUE PARTICIPATING IN A RUSSIANAMERICAN OIL PRODUCTION VENTURE IN THE WESTERN SIBERIAN BASIN STILL THE POSSIBLE DISMANTLING OF PHIBRO'S OPERATIONS REPRESENTS A STUNNING REVERSAL FROM JUST A FEW YEARS AGO IN 1990 PHIBRO'S EARNINGS EXCEEDED THOSE OF SALOMON'S FLAGSHIP SALOMON BROTHERS INC SECURITIES UNIT IN 1990'S THIRD QUARTER ALONE PHIBRO REPORTED A RECORD 369 MILLION IN PRETAX PROFIT FROM AN EXPLOSIVE RALLY IN OIL PRICES FOLLOWING THE IRAQI INVASION OF KUWAIT PHIBRO'S FAT PROFIT LED TO HUGE PAYCHECKS FOR ITS TOP EXECUTIVES INCLUDING ABOUT 20 MILLION IN 1990 SALARY AND BONUS FOR ANDREW J HALL PHIBRO'S CURRENT CHAIRMAN PEOPLE FAMILIAR WITH SALOMON SAY A SCALEDDOWN PHIBRO BRINGS SALOMON CLOSER TO THE BONDTRADING COMPANY IT WAS IN 1981 WHEN IT WAS SOLD TO PHILIPP BROTHERS INC A PUBLICLY TRADED COMMODITIES POWERHOUSE SALOMON OFFICIALS LED BY THENCHAIRMAN JOHN GUTFREUND ENGINEERED A COUP THAT PUT SALOMON IN CHARGE OF PHILIPP WHICH IS NOW CALLED PHIBRO ENERGY MR GUTFREUND BOASTED THAT PHIBRO PROVIDED A HEDGE TO COUNTER BAD SECURITIESRELATED EARNINGS AT SALOMON BUT PHIBRO HAS BLED RED INK FOR TWO YEARS IN 1992'S FOURTH QUARTER PHIBRO HAD A PRETAX LOSS OF 181 MILLION COMPARED WITH A YEAREARLIER PRETAX PROFIT OF 30 MILLION THE 1992 RESULTS INCLUDED SPECIAL CHARGES OF 72 MILLION REFLECTING PHIBRO'S DECISION TO PARE ITS OPERATIONS AND REDUCE ITS EXPOSURE TO THE SHIPCHARTERING BUSINESS FOR ALL OF 1992 PHIBRO HAD A PRETAX LOSS OF 194 MILLION COMPARED WITH 1991 PRETAX EARNINGS OF 47 MILLION PHIBRO ENERGY USA WHICH OWNS AND OPERATES THE FOUR REFINERIES IN THE GULF COAST HAD A PRETAX LOSS OF 31 MILLION IN 1992'S FOURTH QUARTER COMPARED WITH A LOSS OF 90 MILLION IN THE YEAREARLIER PERIOD FOR ALL OF 1992 PHIBRO ENERGY USA HAD A PRETAX LOSS OF 47 MILLION FOLLOWING A 1991 PRETAX LOSS OF 80 MILLION RESULTS FOR BOTH YEARS REFLECT THE DIFFICULT CONDITIONS THAT HAVE PREVAILED IN THE INDUSTRY INCLUDING RECESSIONWEAKENED DEMAND FOR ENERGY PRODUCTS AND EXTREMELY NARROW REFINING MARGINS SALOMON SAYS EVEN THE DEVELOPING RUSSIANAMERICAN JOINT VENTURE HAS HAD LOSSES SALOMON SAID ITS PHIBRO ENERGY PRODUCTION DIVISION HAD A PRETAX CHARGE AGAINST FOURTHQUARTER EARNINGS OF 20 MILLION LARGELY REFLECTING THE DIVISION'S SHARE OF LOSSES THE VENTURE INCURRED DURING ITS DEVELOPMENT PHASE YET SOME BIG INSTITUTIONAL INVESTORS SHRUG OFF PHIBRO'S RECENT PEFORMANCE IF THE REFINERY BUSINESS IS NOT EARNING MONEY THEY'LL SELL IT CONCLUDES LAWRENCE SONDIKE A VICE PRESIDENT AT THE 49 BILLION MUTUAL SERIES FUND GROUP WHICH RECENTLY HAS BEEN SNAPPING UP SALOMON'S SHARES I'D LOVE IT IF BOTH THE BROKER AND THE OIL COMPANY WERE MAKING MONEY MR SONDIKE SAYS BUT SALOMON IS TERRIFIC AT ALLOCATING CAPITAL WHERE IT SHOULD BE SALOMON'S STOCK HAS WON SOME FANS LATELY AMID BLOCKBUSTER RESULTS AT ITS SALOMON BROTHERS BROKERAGE UNIT AND CURRENTLY IS TRADING NEAR ITS 52WEEK HIGH SALOMON CLOSED FRIDAY AT 41125 DOWN 75 CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MEANWHILE PHIBRO'S RECENT STUMBLE HAS MADE PREDICTING SALOMON'S TYPICALLY VOLATILE EARNINGS EVEN MORE DIFFICULT SOME ANALYSTS GROUSE MR HANBURY THE WERTHEIM ANALYST SAYS HE CAN'T PROVIDE A 1993 EARNINGS ESTIMATE FOR SALOMON BECAUSE HE CAN'T FIGURE OUT WHAT SALOMON BROTHERS WILL MAKE AND HOW MUCH PHIBRO IS GOING TO LOSE 9302160086 930216 WHO'S NEWS MAZDA MOTOR CORP MAZDA MOTOR CORP IRVINE CALIF CLARK VITULLI SENIOR VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT OF US OPERATIONS MAZDA SAID MR VITULLI WILL CONTINUE TO OVERSEE SALES MARKETING AND HUMANRESOURCE OPERATIONS OF THE US UNIT HOWEVER A MAZDA SPOKESMAN SAID THE US REGIONAL OFFICES WON'T REPORT TO MR VITULLI ANY LONGER BUT WILL REPORT DIRECTLY TO SONNY SONOGUCHI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAZDA MOTOR OF AMERICA THE SPOKESMAN ADDED THAT THE MOVE WOULD SHIFT MORE DECISIONMAKING TO THE REGIONS IN AN ATTEMPT TO BETTER ADDRESS DEALERS' CONCERNS AND TO RESPOND MORE QUICKLY TO MARKET CHANGES 9302160085 930216 TECHNOLOGY VIDEO GAME MAKERS SEEK ACTION AGAINST TAIWAN WASHINGTON NINTENDO OF AMERICA INC AND MORE THAN 70 OTHER US VIDEOGAME COMPANIES HAVE ASKED THE US TRADE REPRESENTATIVE TO RETALIATE AGAINST TAIWAN FOR REFUSING TO STOP THE PIRATING OF THEIR PRODUCTS THE COMPANIES IN A FILING UNDER A SPECIAL PROVISION OF THE SUPER 301 TRADE LAW CALLED TAIWAN THE CENTER FOR VIDEO GAME PIRACY THROUGHOUT THE WORLD ECHOING LANGUAGE USED BY THE TRADE REPRESENTATIVE'S OFFICE LAST YEAR BEFORE IT CALLED OFF AN INVESTIGATION OF THE ASIAN NATION'S TRADE PRACTICES WHEN IT PROMISED TO CURB VIOLATIONS BANDING TOGETHER FOR THE FIRST TIME TO CALL FOR TRADE SANCTIONS THE COMPANIES SAID THERE HAS BEEN A SIGNIFICANT INCREASE IN THE THEFT OF INTELLECTUAL PROPERTY IN THE LAST TWO YEARS THE OTHER COUNTRIES NAMED IN THE FILING ARE SOUTH KOREA VENEZUELA MEXICO BRAZIL ARGENTINA ECUADOR URUGUAY PARAGUAY SINGAPORE AND CHINA NINTENDO IS A REDMOND WASH UNIT OF NINTENDO CO OF JAPAN THE US UNIT SAID THE COMPANY ITS DEVELOPERS AND LICENSEES HAVE LOST MORE THAN 2 BILLION A YEAR FROM COUNTERFEIT VIDEO GAMES 9302160084 930216 MARKETING & MEDIA CONVERSE CHANGES NAME OF SHOE AFTER CRITICISM NORTH READING MASS CONVERSE INC BOWING TO PRESSURE FROM COMMUNITY GROUPS CHANGED THE NAME OF A NEW BASKETBALL SHOE TO RUN 'N SLAM FROM RUN 'N GUN CRITICS OF THE ATHLETIC SHOE MAKER HAD CHARGED THE NAME RUN 'N GUN MIGHT ENCOURAGE YOUTH VIOLENCE CONVERSE WHICH SAID IT CHOSE THE NAME RUN 'N GUN TO REFER TO A FASTBREAKING STYLE OF BASKETBALL SAID IT MADE THE CHANGE BECAUSE IT IS COMMITTED TO THE SOCIAL AND ATHLETIC WELLBEING OF YOUNG PEOPLE AROUND THE WORLD THE SHOE WILL BE ON STORE SHELVES IN JULY GILBERT FORD CONVERSE PRESIDENT SAID THIS CONTROVERSY HAS GIVEN US A BETTER PERSPECTIVE ON THE POTENTIAL IMPLICATIONS THE NAMES OF ATHLETIC SHOES MIGHT HAVE ON OUR YOUTH MR FORD SAID THE COMPANY A UNIT OF INTERCO INC INTENDS TO REVIEW THE NAMES OF ALL OF THE PRODUCTS IN ITS FALL LINE I WOULD FURTHER ENCOURAGE OTHER COMPANIES IN THE ATHLETIC SHOE INDUSTRY TO TAKE THE SAME KIND OF SOCIALLY CONSCIOUS ACTION IN NAMING THEIR PRODUCTS WHICH TRADITIONALLY HAVE CARRIED AGGRESSIVE NAMES HE SAID 9302160083 930216 OFF COURSE BOEING'S BID TO AVOID SWINGS IN ITS BUSINESS FALLS SHORT OF HOPES IT IS PLANNING HUGE LAYOFFS AS AIRLINES SLASH ORDERS SUPPLIERS SEATTLE SUFFER LIVING WITH A ROLLER COASTER BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE BOEING CO THOUGHT IT HAD FINALLY FIGURED OUT A WAY TO EVEN OUT THE HUGE CYCLICAL SWINGS IN ITS BUSINESS IT WAS WRONG AND THE WHOLE STATE OF WASHINGTON IS CAUGHT IN THE DOWNDRAFT EVEN WHILE BASKING IN A HISTORIC RUN OF MULTIBILLIONDOLLAR JETLINER ORDERS BOEING HAD CAREFULLY ARRANGED TO STRETCH OUT ITS DELIVERIES INTO THE MID1990S GONE OR AT LEAST GREATLY REDUCED WOULD BE THE NEED FOR COSTLY PLANT SLOWDOWNS AND MASSIVE LAYOFFS THAT HAD FOLLOWED PREVIOUS BOOMS BUT DESPITE THE BEST EFFORTS OF THE WORLD'S MOST SUCCESSFUL AIRCRAFT MANUFACTURER BOEING IS EXPECTED TO ANNOUNCE LATER THIS WEEK DETAILS OF PLANS TO SLASH THIS YEAR SOME 15000 TO 20000 JOBS ABOUT 20 OF ITS AIRLINER PAYROLL LARGELY FROM ITS LEGIONS OF WORKERS IN WESTERN WASHINGTON EVEN MORE JOBS ARE LIKELY TO BE CUT NEXT YEAR THE COMPANY ALREADY HAS ANNOUNCED CUTBACKS THAT WILL REDUCE ITS AIRLINER PRODUCTION RATE 47 IN THE TWO YEARS ENDING IN MID1994 BOEING HAS AGAIN BEEN CAUGHT OFF GUARD BY THE DEPTH OF THE AIRLINES' WOES I DON'T KNOW ANY EXECUTIVE WHO LOVES TO SIT AND SAY GEE I'M SURPRISED I WAS FACING NORTH AND ALL THE ACTION WAS SOUTH' SAYS BOEING PRESIDENT PHILIP CONDIT WHO NONETHELESS ALLOWS THAT THAT IS SUBSTANTIALLY WHAT HAPPENED BOEING'S PROBLEMS WILL DEEPEN THE US TRADE DEFICIT THE NET REDUCTION IN ANNUAL EXPORTS MAY EXCEED 3 BILLION THEY ARE DRIVING SOME BOEING SUBCONTRACTORS OUT OF BUSINESS AND THEY ARE RATTLING FOREIGN ECONOMIES THAT HAVE BENEFITED FROM BOEING'S SHIFT TOWARD OVERSEAS SUPPLIERS BUT AS IN THE PAST THE STATE OF WASHINGTON WILL BLEED THE MOST WE ARE ABOUT AS DEPENDENT ON BOEING AS WE EVER HAVE BEEN SAYS PAUL SOMMERS OF THE UNIVERSITY OF WASHINGTON'S NORTHWEST POLICY CENTER DESPITE MUCHPUBLICIZED ATTEMPTS TO REDUCE ITS DEPENDENCE WASHINGTON STILL OWES MORE THAN A THIRD OF ITS MANUFACTURING JOBS DIRECTLY OR INDIRECTLY TO BOEING SOME SURVEYS INDICATE THAT IF ANYTHING THAT DEPENDENCE HAS GROWN HOW DID BOEING A BASTION OF FINANCIAL CONSERVATISM MUFF ITS CONCERTED EFFORT TO IMMUNIZE ITSELF AGAINST THE BUSINESS PROBLEMS OF ITS CUSTOMERS THE AIRLINES THE ANSWER SEEMS TO BE THAT BOEING UNDERESTIMATED THOSE PROBLEMS ITS EXECUTIVES EXPECTED CONDITIONS TO HAVE IMPROVED BY NOW A BOEING MEMORANDUM TO SUPPLIERS JUST LAST NOV 3 ENVISIONED ANTICIPATED PRODUCTION RATES THAT WOULD BE STABLE FOR MOST MODELS AND IT EVEN FORECAST AN INCREASE IN PRODUCTION OF THE SMALL 737 JETLINER NEXT YEAR THE MEMO WAS SENT DESPITE WHAT BOEING NOW CONCEDES WAS THE EMERGENCE MONTHS EARLIER OF STRONG SIGNALS THAT THE SLUMP WAS DEEPENING BOEING MANAGERS CAN MAKE A GOOD CASE BY CITING THEIR CURRENT PRODUCTION PLANS THAT THE DAMAGE WOULD HAVE BEEN MUCH MORE SEVERE IF THEY HADN'T TRIED TO TEMPER THE BOOM WHICH CULMINATED IN A SURGE IN ORDERS IN 1989 AND 1990 THAT TOTALED 1411 PLANES WORTH MORE THAN 94 BILLION WE JUST BY THE VERY NATURE OF BEING A CAPITALGOODS SUPPLIER ARE BOUND TO BE IN A MORE SEVERE CYCLE SAYS MR CONDIT ADDING THE FUNDAMENTAL FACT REMAINS THAT YOU ARE STILL IN A BUSINESS THAT HAS SOME CYCLICAL CHARACTER TO IT AND YOU CAN'T WISH THAT AWAY YOU CAN'T PLAN THAT AWAY NOT COINCIDENTALLY BOEING'S TWO MAIN RIVALS AIRBUS INDUSTRIE AND MCDONNELL DOUGLAS CORP ALSO HAVE SUFFERED AN UNPRECEDENTED LEVEL OF CANCELLATIONS AND REQUESTS FOR DELAYED DELIVERIES NOW BOEING EXECUTIVES ARE HARD AT WORK AT THE GIANT COMPANY WHICH HAD SALES LAST YEAR TOTALING 3018 BILLION THEY ARE REJUGGLING PRODUCTION SCHEDULING AND STAFFING WHILE DEALING WITH SUBCONTRACTORS SQUEEZED AND DISGRUNTLED THAT THEY DIDN'T GET MORE WARNING THEY ALSO FACE WANING EMPLOYEE ENTHUSIASM AND REIGNITED CONFLICTS OVER BOEING'S DOMINANT ROLE IN THIS REGION AND THE PRICE OF BOEING STOCK HAS BEEN WEAK ON FRIDAY IT CLOSED AT 34375 A SHARE UNCHANGED ON THE DAY BUT NOT MUCH ABOVE ITS 12MONTH LOW OF 33125 AND WELL BELOW ITS 12MONTH HIGH OF 47875 LONGER TERM IT IS FAR FROM CERTAIN THAT THE WORST IS OVER BOEING CHAIRMAN FRANK SHRONTZ WHO RARELY TALKS IN HYPERBOLE CALLS THE FARECUTTING STRATEGIES OF HIS US AIRLINE CUSTOMERS A KIND OF DEATH WISH THAT THREATENS TO TAKE EVEN THE STRONGEST CARRIERS DOWN THE TUBE THOUGH HE DOESN'T SEE THAT HAPPENING FOR NOW BOEING MANAGERS NOTE THAT THE HANDFUL OF MAJOR DOMESTIC CARRIERS AREN'T HURTING BECAUSE OF A LACK OF PASSENGERS THEY ARE PARALYZED BY THEIR FINANCIAL WEAKNESS BECAUSE THEY CAN'T SETTLE ON A SENSIBLE FARE STRUCTURE THAT ALLOWS ALL OF THEM TO MAKE MONEY WEAKER PLAYERS HURTING FOR CASH AND FEARFUL OF LOSING MARKET SHARE REFUSE TO ADHERE TO BASIC FARESETTING STRUCTURES REPEATEDLY PROPOSED BY CARRIERS SUCH AS AMR CORP'S AMERICAN AIRLINES I DON'T HAVE A STRONG FOUNDATION FOR MY HOPE THAT THAT'S GOING TO CHANGE MR SHRONTZ SAYS SINCE THE FIRST JETLINERS FLEW IN THE 1950S THE DRAMATIC PEAKS AND VALLEYS OF AIRLINER ORDERING HAVE BEEN AS MUCH A PART OF THE SEATTLE SCENE AS THE IMPOSING CASCADE RANGE TO THE EAST AN UPTURN SWELLED BOEING'S COMMERCIALAIRCRAFT PAYROLL TO 85000 BY MID1968 ONLY TO BE FOLLOWED BY LAYOFFS THAT LEFT JUST 21000 WORKERS EMPLOYED BY 1971 BOEING'S PLAN FOR INSULATING ITSELF FROM DRASTIC PRODUCTION CUTS BEGAN AFTER A 40 PLUNGE IN DELIVERIES IN THE TWO YEARS FOLLOWING THE 1980 ORDER PEAK BY 1989 MR CONDIT THEN PRESIDENT OF THE COMMERCIALAIRPLANE DIVISION WAS TALKING OF FLATTENING THE CYCLE BY BUILDING A HUGE BACKLOG OF ORDERS BUT HOLDING DOWN PRODUCTION AND NEGOTIATING WITH SOME BUYERS TO DEFER DELIVERIES INTO 1994 AND 1995 PLANTS WOULD BE KEPT BUSY THROUGH THE MID1990S DESPITE THE EXPECTED DROP IN ORDERS UNTIL LAST FALL BOEING SEEMED TO BE PULLING IT OFF TO PRODUCE THE NEWGENERATION 777 JETLINER BOEING IS ADDING 10000 JOBS AT PLACES FROM EVERETT TO TACOMA IN THE SOUTH BOEING CURRENTLY HAS A TOTAL OF 142000 EMPLOYEES WITH 85000 ON THE AIRLINER SIDE AS IT CALCULATED THE NEED FOR PRODUCTION CUTS IN OTHER PROGRAMS ATTRITION OF ABOUT 5000 PEOPLE A YEAR WAS EXPECTED TO MITIGATE THE NEED FOR MORE LAYOFFS LAST YEAR AS BOEING SLOWLY CUT JET PRODUCTION AND SHARPLY CURTAILED SOME DEFENSE PROGRAMS IT CLIPPED ABOUT 10000 JOBS ABOUT 5900 WERE IN WASHINGTON STATE BOEING MANAGED TO GET SOME AIRLINES TO ACCEPT ITS DELIVERY SCHEDULE WE WERE CONTINUALLY TRYING TO CONVINCE CUSTOMERS THAT THEY NEEDED TO THIN OUT THEIR REQUIREMENTS SPREAD THEM OUT INTO THE FUTURE THEY NEEDED TO TRY TO PACE THEIR RATE OF GROWTH RECALLS CAROLYN CORVI A PROGRAMMANAGEMENT SUPERVISOR AT THE RENTON WASH PLANT AS LAST SUMMER WANED THOUGH EDWARD M HOMMEL FELT A SENSE OF FOREBODING AS THE SALES DIRECTOR FOR THE COMMERCIALAIRPLANE GROUP MR HOMMEL HAD TO DEAL WITH 10000 SEPARATE CUSTOMER REQUESTS LAST YEAR TO SHUFFLE THE TIMING OF DELIVERIES IN BOEING'S 1500PLANE BACKLOG SO HE WAS AMONG THE FIRST TO DETECT THE HOLES THAT BEGAN FORMING IN 1994 DELIVERY SCHEDULES ON THE CLOSELY GUARDED SKYLINE CHARTS THAT PLOT INCOMING ORDERS PRECISE DELIVERY DATES AND POTENTIAL BUYERS AS THE 1992 THIRD QUARTER WORE ON HE SAYS IT BECAME OBVIOUS THAT IT REALLY WASN'T TURNING AROUND AND WE BEGAN TO SET THE STAGE TO SLASH PRODUCTION WHAT BOEING HADN'T COUNTED ON WERE EVENTS THAT EXACERBATED ITS TRADITIONAL CYCLE INTO A GLOBAL PHENOMENON WHILE THE US AIRLINE SLUMP IS DRAGGING ON THROUGH ITS THIRD YEAR EUROPEAN AIRLINES' BUSINESS ALSO IS BEING HURT BY THE HIGH INTEREST RATES AND WEAK ECONOMIES ON THE CONTINENT AND THE JAPANESE ECONOMY IS STUMBLING UNEXPECTED ORDER DELAYS ARE BEING ANNOUNCED OR PLANNED BY AMERICAN AIRLINES BY UAL CORP'S UNITED AIRLINES BY GPA GROUP PLC THE TROUBLED IRISH AIRCRAFTLEASING COMPANY AND EVEN BY USUALLY DEPENDABLE JAPAN AIR LINES ON JAN 26 BOEING DROPPED ITS BOMB IT SAID THAT OVER THE NEXT 18 MONTHS IT WOULD TRIM DELIVERY RATES ACROSS ITS LINE OF 737 757 AND 767 TWINJETS AND AT ITS JUMBO 747 FACILITY THE CUTS WOULD RESULT IN SIGNIFICANT LAYOFFS DETAILS OF WHICH ARE ABOUT TO BE ANNOUNCED BOEING'S MANAGERS EXPECT THAT ITS PARTS FACTORIES AT WICHITA KAN ALSO WILL BE HARDHIT EVEN THOUGH BOEING HAS BEEN BROADENING ITS BASE OF 3800 SUBCONTRACTORS INTO AN INCREASINGLY GLOBAL GROUP THE PACIFIC NORTHWEST REMAINS THE CENTER OF ITS SUPPLY SYSTEM AND FOR SUPPLIERS HERE BOEING'S PROBLEMS ARE JUST THE LATEST OF MANY BLOWS INCLUDING ITS GLOBALIZATION CAMPAIGN ITS DRIVE TO TAKE ON MORE SUCH WORK ITSELF AND THE PROSPECT OF YEARS OF CUTBACKS IN US MILITARY PURCHASES SOME SUPPLIERS SAW THE HANDWRITING ON THE WALL ALL ALONG ANYBODY IN THE AEROSPACE INDUSTRY WHO WAS TAKEN BY SURPRISE BY THIS SHOULDN'T BE IN THE INDUSTRY SAYS RICHARD PETRICH CHIEF FINANCIAL OFFICER FOR MIW AEROSPACE OF TACOMA A LONGTIME LANDINGGEARPARTS SUPPLIER THAT PLANS TO CLOSE DOWN BY YEAR END OTHERS ARE LESS CERTAIN AT THE 120WORKER PRECISION MACHINE WORKS INC IN TACOMA ALUMINUM SHAVINGS CRUNCH UNDER PRESIDENT JOHN GAZECKI'S FEET AS HE STROLLS THROUGH HIS NEWLY EXPANDED PLANT PAUSING BY A BULLETIN BOARD HE MOTIONS TOWARD A PHOTO OF A 350000 TOOL ORDERED LAST FALL AND DUE TO ARRIVE IN MAY THAT WAS BASED ON THE 757 GOING TO 10 A MONTH HE SAYS BUT NOW BOEING PLANS TO CUT THE CURRENT 85AMONTH RATE FOR 757S TO FIVE IN SEPTEMBER MR GAZECKI SAYS HIS REVENUE WILL PLUMMET TO 12 MILLION IN 1994 FROM THE 18 MILLION ANTICIPATED THIS YEAR HE ALREADY HAS TRIMMED 30 JOBS AND PLANS TO CUT ABOUT 18 MORE BOEING PROCUREMENT CHIEF JAMES BLUE WHO OVERSEES ITS 56 BILLION OF SUPPLIER CONTRACTS SAYS PRESSURES TO RAISE EFFICIENCY ARE FORCING BOEING TO BALANCE ITS OWN SURVIVAL WITH THAT OF VALUED SUPPLIERS HE ESTIMATES THAT LAST YEAR 60 SUPPLIERS IN THE PUGET SOUND AREA DISAPPEARED AND MORE ARE GOING TO DIE RECENTLY HE SAYS HE ORDERED EXTRA WORK FOR 250 SUBCONTRACTORS MOSTLY TO ENSURE THAT THEY WILL BE AROUND FOR THE NEXT UPSWING HE ALSO SAYS SUPPLIERS WHO ONCE DID MOSTLY DEFENSE WORK ARE BEGGING FOR COMMERCIAL JOBS HELL I DON'T HAVE THE WORK I DON'T HAVE IT ANYMORE MR BLUE FRETS BOEING'S PERVASIVENESS IN THE AREA OF COURSE MAKES IT A CONSTANT FOCUS OF STUDY THE NORTHWEST POLICY CENTER'S MR SOMMERS SAYS THAT ALTHOUGH BOEING HAS FEWER LOCAL SUPPLIERS IT HAS GROWN AND ITS HIGH WAGES ESPECIALLY FOR BLUECOLLAR WORKERS ARE HARD TO DUPLICATE DESPITE THE SUCCESS OF OTHER LOCALLY BASED COMPANIES SUCH AS SOFTWARE GIANT MICROSOFT CORP WHICH EMPLOYS 7000 PEOPLE IN WESTERN WASHINGTON BOEING'S ECONOMIC CONTRIBUTION IS A BLESSING MR SOMMERS SAYS BUT YOU'VE GOT TO LIVE WITH THE ROLLER COASTER AND THE CURRENT BUMPY RIDE MAY WELL STRAIN THE RELATIONSHIP BETWEEN THE COMPANY AND ITS HOST STATE EARLY ESTIMATES SUGGEST THAT WASHINGTON'S TAX REVENUE COULD DROP A TOTAL OF MORE THAN 320 MILLION OVER TWO YEARS AND THAT DROP IN TURN WOULD TRIGGER LAYOFFS IN THE PUBLIC SECTOR AS BUREAUCRATS WEARILY HAUL OUT THEIR CALCULATORS AGAIN BOEING'S CRITICS ARE REVIVING COMPLAINTS THAT IT PLAYS TOO BIG A ROLE IN FORMULATING WASHINGTON'S ENVIRONMENTAL AND TAX POLICIES ONE HOT DEBATE IS OVER FAVORABLE SALESTAX AND BUSINESSTAX LAWS THAT CRITICS SAY SAVE THE COMPANY AN ESTIMATED 1 BILLION EVERY TWO YEARS BOEING EXECUTIVES WHO CONTEND THAT THEY WOULD GET THE SAME TAX TREATMENT FROM OTHER STATES GENERALLY CONCEDE THAT THE REGION IS OVERLY RELIANT ON THE COMPANY AND SOME EXECUTIVES SUGGEST THAT PERHAPS THEY SHOULD LOOK ELSEWHERE FOR BOEING'S SHARE OF PRODUCTION ON THE NEXT MAJOR NEW JETLINER A 600SEAT SUPERJUMBO PLANE THAT A BOEINGLED INTERNATIONAL CONSORTIUM MAY EVENTUALLY BUILD BOEING HAS MADE CLEAR ITS IRRITATION OVER TIMECONSUMING STATE AND LOCAL ENVIRONMENTAL REVIEWS AND DEMANDS FOR COMPANY PAYMENTS TO OFFSET ENVIRONMENTAL COSTS A PARTICULAR THORN WAS THE 47 MILLION BOEING WAS REQUIRED TO SHELL OUT FOR HIGHWAYS BUSES AND OTHER AMENITIES TO COUNTER THE IMPACT OF A CAVERNOUS NEW PLANT NEARING COMPLETION AT THE EVERETT FACILITY TO BUILD ADVANCED 777 AIRLINERS IN MANY CASES WE'VE BEEN TAKEN FOR GRANTED AND IN SOME CASES TAKEN ADVANTAGE OF CHAIRMAN SHRONTZ COMPLAINS THE CONTROVERSY OVER BOEING'S ROLE HAS CREATED DIZZYING CONFLICTS FOR LOCAL OFFICIALS A FEW DAYS AFTER THE PRODUCTION CUTS WERE ANNOUNCED EVERETT MAYOR PETER KINCH SAT IN HIS OFFICE BRACING FOR MORE GROWTH FROM THE NEW 777 PLANT WHICH STILL SEEMS TO BE ON TRACK SIMULTANEOUSLY HE WAS CONTEMPLATING POSSIBLE MUNICIPAL LAYOFFS BECAUSE OF THE OVERALL PRODUCTION DROP HE ALSO FINDS HIMSELF DEFENDING THE LOCAL ENVIRONMENTALIMPACT DEMANDS WHILE CALLING FOR GOVERNMENT AND GRASSROOTS ACTION TO HELP BOEING WEATHER ITS SLUMP IN BOEING'S PLANTS MEANWHILE THERE'S A SENSE OF RESIGNATIONAND DEJA VU JOHN JENNINGS A FLIGHTLINE ELECTRICIAN PAUSES AFTER HIS GRAVEYARD SHIFT TO OBSERVE THAT HIS RELATIVELY MEAGER 5 1/2 YEARS ON THE JOB SEEM TO MARK HIM FOR LAYOFF WITH THE US AEROSPACE BUSINESS IN A TAILSPIN HE SAYS HE PLANS TO HUNT FOR WORK IN SAUDI ARABIA EVERYTHING CHANGES AND IF YOU DON'T ADAPT TO CHANGE YOU GET LEFT BEHIND OR DESTROYED HE OBSERVES THE HUMAN PART OF THIS IS UNATTRACTIVE AS HELL SAYS DEAN D THORNTON THE PRESIDENT OF BOEING'S COMMERCIALAIRPLANE GROUP WHO MADE LAST MONTH'S FINAL DECISION TO CUT PRODUCTION MANY YOUNGER WORKERS ARE ALL FIRED UP ABOUT QUALITY IMPROVEMENT AND ALL OF THE THINGS WE'RE TRYING TO DO AND WE'VE GOT TO GIVE THEM PINK SLIPS GOD THAT'S TOUGH HE ADDS IT AFFECTS MORALE IT AFFECTS MY MORALE BUT DEPRESSED WORKERS ARE JUST THE BEGINNING OF THE COMPLICATIONS AND EXPENSE FOR BOEING REMAINING WORKERS WHO INSTALL LAVATORY FLOORS OR WIRE COCKPIT DISPLAYS ON 747S FOR EXAMPLE WILL SOON ADD HALFADOZEN UNFAMILIAR DUTIES AS THE PEOPLE ON THE EVERETT LINE DWINDLE AND UNDER UNION CONTRACTS A HIGHSENIORITY WORKER CAN BUMP A WORKER WITH LESS SENIORITY TO ANOTHER J0B OFTEN TRIGGERING AS MANY AS FIVE REASSIGNMENTS HOWEVER BOEING SAYS IT WILL DEAL WITH THE PROBLEMS AND RESUME ITS EFFORTS TO ALLEVIATE THE INDUSTRY'S CYCLES WE HAVEN'T FOUND A WAY TO REPEAL THE CYCLES CHAIRMAN SHRONTZ SAYS WE HAVE FOUND A WAY TO TEMPER THEM A BIT BOEING'S BEST HOPE OF DOING THAT IS THROUGH ITS DRAMATIC GAINS IN EFFICIENCY WHICH WILL HALVE THE CYCLE TIME BETWEEN WHEN A PLANE IS ORDERED AND WHEN IT IS DELIVERED BOEING MANAGERS SAY SUCH A CHANGE COULD REDUCE THE AIRLINES' TEMPTATION TO OVERORDER DURING GOOD TIMES TO RESERVE A PLACE IN BOEING'S DELIVERY SCHEDULE FEAR OF BEING SHUT OUT IS A MAJOR REASON FOR BOOMS IN ORDERS BUT BOEING MANAGERS ARE TEMPERING THEIR PROMISES AND FOR GOOD REASON DURING THE LAST ORDER BOOM MR SHRONTZ SOUGHT TO CUT PRODUCTION COSTS 25 OVER FIVE YEARS HIS GOAL HAS BEEN ONLY HALFREALIZED WITH ONE YEAR TO GO ON HIS DEADLINE AND AS FOR PREDICTING THE TIMING OF A MARKET REBOUND MR SHRONTZ IS ALSO CAUTIOUS I WOULD HOPE THAT BY 1994 AT SOME POINT WE WOULD BEGIN TO SEE SOME RESURGENCE IN ORDERS HE SAYS ADDING QUICKLY I SURE HAVE BEEN WRONG BEFORE 9302160082 930216 TECHNOLOGY & HEALTH FCC PANEL URGES NEW SET OF HDTV TESTS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPECIAL PANEL RECOMMENDED A NEW ROUND OF TESTING FOR THE FOUR SYSTEMS VYING TO BE THE US STANDARD FOR HIGHDEFINITION TELEVISION THE PANEL GAVE ITS ADVICE TO THE FEDERAL COMMUNICATIONS COMMISSION'S ADVISORY COMMITTEE ON ADVANCED TELEVISION WHICH IS SCHEDULED TO MEET FEB 24 TO CONSIDER WHAT SYSTEM TO RECOMMEND TO THE FCC THE ADVISORY COMMITTEE'S FINAL DECISION IS NOW LIKELY TO BE POSTPONED FOR ABOUT FIVE MONTHS WHILE THE FOUR SYSTEMS ARE TESTED FOR THREE OR FOUR WEEKS APIECE AND ENGINEERS ANALYZE THE RESULTS THE CONTENDERS INCLUDE TWO SYSTEMS DEVELOPED BY GENERAL INSTRUMENT CORP AND THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ONE BY A TEAM OF ZENITH ELECTRONICS INC AND AMERICAN TELEPHONE & TELEGRAPH CO AND ONE BY A GROUP THAT INCLUDES DAVID SARNOFF RESEARCH CENTER THE US UNITS OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND THOMSON OF FRANCE THE NBC UNIT OF GENERAL ELECTRIC CO AND COMPRESSION LABS INC OF SAN JOSE CALIF ALL FOUR SYSTEMS ARE DIGITAL MEANING THAT SIGNALS ARE TRANSMITTED IN THE 1S AND 0S OF COMPUTER CODE NHK JAPAN'S PUBLIC BROADCASTING CORPORATION DROPPED OUT OF THE COMPETITION LAST WEEK WHEN IT BECAME APPARENT ITS SYSTEM HAD NO POSSIBILITY OF WINNING NHK STUCK WITH ANALOG TECHNOLOGY EVEN AS THE FCC PUSHED FOR A DIGITAL STANDARD THE COMPANIES WERE HAPPY WITH THE NEW ROUND OF TESTING BECAUSE IT GIVES THEM A CHANCE TO DEMONSTRATE HOW THEIR SYSTEMS HAVE BEEN FINETUNED TO THE CASUAL OBSERVER DIFFERENCES IN THE CURRENT SYSTEMS ARE HARD TO DETECT WE BELIEVE IT WILL BE A BETTER DECISION BECAUSE OF THE SUPPLEMENTAL TESTING AN AT&T SPOKESMAN SAID ECHOING OTHERS HE ALSO SAID THAT LINES OF COMMUNICATION ARE OPEN BETWEEN THE COMPETITORS AND THAT THE IDEA OF A MERGED GROUP HAS COME UP IN THE PAST HE DECLINED TO COMMENT FURTHER THE EXTRA TESTING TO BE PERFORMED AT THE INDUSTRYSUPPORTED ADVANCED TELEVISION TEST CENTER IN ALEXANDRIA VA IS CERTAIN TO PUSH BACK THE FCC'S TIMETABLE FOR SELECTING AN HDTV STANDARD THE AGENCY HAD HOPED TO MAKE A FINAL CHOICE BY THE END OF THIS YEAR NOW A DECISION APPEARS UNLIKELY UNTIL NEXT YEAR BUT SUCH A DELAY DOESN'T SEEM SIGNIFICANT CONSIDERING THAT WHATEVER HDTV STANDARD IS SELECTED WILL BE USED IN BROADCAST AND CABLE TRANSMISSION AS WELL AS TELEVISION SETS FOR MANY DECADES A DECISION COULD COME MUCH EARLIER THOUGH IF THE FOUR COMPETING SYSTEMS WERE TO CONSOLIDATE IN THE PAST TWO WEEKS THE FOUR COMPETING GROUPS HAVE BEGUN PRELIMINARY TALKS THAT COULD LEAD TO A COMBINATION THE ADVISORY COMMITTEE AND THE FCC WOULD WELCOME A MERGED SYSTEM WHICH WOULD ELIMINATE THE CHANCES THAT SOME LOSING PARTY WOULD SUE OVER ITS CHOICE THE ZENITH GROUP AND THE GENERAL INSTRUMENT GROUP ALREADY AGREED TO SHARE ROYALTIES IF EITHER SIDE WINS THE COMPETITION ALTHOUGH EACH SYSTEM MIGHT HAVE SOME GLITCHES ALL DELIVER FAR SHARPER PICTURES AND CLEARER SOUND THAN POSSIBLE WITH TODAY'S TV TECHNOLOGY BECAUSE THE SYSTEMS ARE DIGITAL THEY CAN USE THE BROADCAST AIRWAVES MORE EFFICIENTLY AND ARE BETTER ABLE TO COMMUNICATE WITH COMPUTERS THAN EXISTING TV SETS 9302160081 930216 SOUTH KOREA BANKS TRIM STAFF PRIOR TO DEREGULATION BY KIM SOOMI SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S COMMERCIAL BANKS PREPARING FOR THE STIFFER COMPETITION THAT DEREGULATION IS EXPECTED TO BRING ARE TRIMMING THEIR OPERATIONS THE KOREAN GOVERNMENT HAS PLEDGED TO OPEN THE NATION'S FINANCIAL MARKETS IN THREE STEPS BY 1997 THE STEPS WILL INCLUDE THE FULL DEREGULATION OF INTEREST RATES BY THE END OF THIS YEAR THE GOVERNMENT IS TO FREE ABOUT 90 OF INTEREST RATES UP FROM THE CURRENT 10 THE DEREGULATION WILL FORCE BANKS TO COMPETE FOR DEPOSITS MORE AGGRESSIVELY SENIOR BANKERS SAY IT IS EXPECTED TO NARROW THE SPREAD BETWEEN DEPOSIT RATES AND LOAN RATES CURRENTLY AT A WIDE 23 PERCENTAGE POINTS THUS MAKING LENDING LESS PROFITABLE IN AN EFFORT TO MINIMIZE THE DISRUPTIONS THAT DEREGULATION WILL BRING A SPECIAL TASK FORCE UNDER THE FINANCE MINISTRY IS DRAFTING A PLAN TO REVAMP AND RESTRUCTURE THE FINANCIAL INDUSTRY EXPECTATIONS IN THE FINANCIAL COMMUNITY ARE THAT THE DRAFT WILL AMONG OTHER THINGS FOCUS ON BROADENING THE BUSINESS OPERATIONS OF BANKS WHICH ARE BARRED FROM ENGAGING IN SUCH AREAS AS BROKERAGE OPERATIONS AND INVESTMENT COUNSELING A MANAGER AT THE CENTRAL BANK SAID THE DRAFT ALSO IS LIKELY TO GIVE THE BANKS A FREER HAND TO MANAGE ASSETS THE DRAFT IS EXPECTED TO BE ISSUED BY THE END OF FEBRUARY WITH A GOAL OF COMPLETION BY THE END OF JUNE A COMPARISON OF KOREAN AND JAPANESE BANKS BY THE OFFICE OF BANKING SUPERVISION AND EXAMINATION SHOWS THAT A KOREAN BANK BRANCH HAS ABOUT 25 MORE STAFF THAN ITS JAPANESE EQUIVALENT SPURRED BY THE DEREGULATIONS PLANS THE SIX MAJOR KOREAN BANKS BASED IN SEOUL CHO HUNG BANK COMMERCIAL BANK OF KOREA KOREA FIRST BANK SEOUL BANK HANIL BANK AND KOREA EXCHANGE BANK ARE RESTRUCTURING KOREA FIRST BANK BEGAN A FIVEYEAR RESTRUCTURING PROGRAM IN 1991 AND EXPECTS TO REDUCE EMPLOYMENT TO 8360 POSITIONS BY 1995 FROM 9269 AT THE SAME TIME THE NUMBER OF BRANCHES IS TO EXPAND TO 305 FROM 276 CHO HUNG BANK AIMS TO REDUCE ITS WORK FORCE TO 9000 BY 1995 FROM 9800 THE NUMBER OF ITS BRANCHES IS EXPECTED TO RISE BY 20 ANNUALLY FROM THE CURRENT 324 OFFICIALS AT BOTH BANKS SAY THEY EXPECT TO REACH THEIR GOALS PRIOR TO THE TARGET YEAR WORKFORCE REDUCTIONS ARE BEING ACHIEVED THROUGH REDUCTIONS IN RECRUITING AND BY LEAVING OPENINGS UNFILLED BANK OFFICIALS SAY THAT BANK MERGERS ARE POSSIBLE AND THAT THEY COULD RESULT IN LAYOFFS WITH THAT BACKGROUND THE STOCK MARKET HAS BEEN HOME TO RUMORS ABOUT BANK MERGERS DESPITE DENIALS FROM THE BANKS THAT ARE THE SUBJECT OF THE RUMORS BANK MERGERS ARE ALMOST IMPOSSIBLE UNDER CURRENT LAW HOWEVER BANKERS EXPECT THE GOVERNMENT TO EASE THE RESTRICTIONS 9302160080 930216 BOEING UNION ACCEPTS PACT IT REJECTED LAST MONTH SEATTLE AN INDEPENDENT UNION REPRESENTING BOEING CO'S ENGINEERS AND TECHNICAL WORKERS VOTED TO ACCEPT THE SAME THREEYEAR CONTRACT THAT ITS MEMBERS REJECTED IN DECEMBER UNION OFFICIALS SAID THE SEATTLE PROFESSIONAL ENGINEERING EMPLOYEES ASSOCIATION SAID 66 OF ENGINEERS AND 62 OF TECHNICAL WORKERS VOTED TO APPROVE THE COMPANY'S OFFER DANIEL MAHONEY THE UNION'S GENERAL COUNSEL SAID THE UNION REPRESENTS 14968 BOEING ENGINEERS AND 13337 TECHNICAL EMPLOYEES IN TWO BARGAINING UNITS IN JANUARY BOEING ANNOUNCED A 35 PRODUCTION CUT WHICH RELIABLE ESTIMATES SUGGEST WILL LEAD TO 15000 TO 20000 JOB CUTS THIS YEAR WITH THE PROSPECT OF EVEN MORE IN 1994 THE CONTRACT PROVIDES THAT AMONG OTHER THINGS TECHNICAL WORKERS WILL RECEIVE A 4 GENERAL WAGE INCREASE RETROACTIVE TO DECEMBER AND 2 FOR EACH OF THE NEXT TWO YEARS THE CONTRACT ALSO INCLUDES A MERITRAISE POOL WHICH WILL BE ADMINISTERED BY MANAGEMENT ENGINEERS WON'T RECEIVE A GENERAL WAGE INCREASE WHICH THEY HAD BEEN SEEKING BUT WILL RECEIVE MERIT RAISES RANGING FROM 5 TO 6 9302160079 930216 MARKETING & MEDIA PAYPERVIEW TV IS GIVEN LOW MARKS BY CONSUMERS NEW YORK AMERICAN CONSUMERS STILL RATE FRESH POULTRY A GREAT BUY BUT THINK PAYPERVIEW TELEVISON IS A RAW DEAL ACCORDING TO A CONFERENCE BOARD SURVEY OF HOUSEHOLDS OTHER BEST BUYS INCLUDE VIDEOTAPE RENTALS TELEVISION SETS AND OTHER FRESH FOOD SUCH AS FRUITS AND VEGETABLES OTHER BAD BUYS INCLUDE TICKET EVENTS MOVIES AND SPORTS HEALTH INSURANCE AND MEDICAL CARE AND COLLEGE TUITION THE SURVEY OF 6500 HOUSEHOLDS WAS CONDUCTED FOR THE BOARD BY NATIONAL FAMILY OPINION INC AND RESPONDENTS GAVE GOOD FAIR OR POOR RATINGS TO 50 WIDELY USED GOODS AND SERVICES THE SURVEY FINDINGS CONFIRM THAT AMERICAN CONSUMERS HAVE BECOME INCREASINGLY DISCRIMINATING BUYERS SAID FABIAN LINDEN EXEUCTIVE DIRECTOR OF THE BOARD'S CONSUMER RESEARCH CENTER HE SAID THAT SINCE THE BOARD'S LAST FINDINGS IN 1990 SOME CHANGES ARE EVIDENT TELEPHONE SERVICE WAS RATED CONSIDERABLY BETTER BUT CAR REPAIRS AND CABLE TELEVISION HAVE DETERIORATED IN CONSUMERS' EYES WHILE POULTRY AND VIDEO RENTALS WERE STILL RATED BEST AND SECONDBEST PAYPERVIEW TV BUMPED HOSPITAL CHARGES AS THE WORST BUY OF THE 50 9302160078 930216 CORPORATE FOCUS FARMLAND INDUSTRIES HOPES TO BECOME HOUSEHOLD NAME HUGE COOPERATIVE MAKES A PUSH INTO THE CONSUMER FOOD BUSINESS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL KANSAS CITY MO FARMLAND INDUSTRIES INC A HEARTLAND BEHEMOTH HAS PROSPERED AS THE NATION'S LARGEST FARM COOPERATIVE WHILE REMAINING VIRTUALLY UNKNOWN TO MOST AMERICANS BUT THAT ANONYMITY IS ABOUT TO DISAPPEAR FARMLAND HAS EMBARKED ON A BOLD AND RISKY COURSE TO MAKE IT MORE OF A HOUSEHOLD NAME IN THE FOOD BUSINESS IT HAS GONE ON AN ACQUISITION BINGE IN RECENT MONTHS GOBBLING UP FOOD COMPANIES FROM MASSACHUSETTS TO OKLAHOMA IT ALREADY SELLS HAM SAUSAGE HOT DOGS AND PORK CUTS WITH THE FARMLAND LABEL IN SUCH CITIES AS KANSAS CITY MINNEAPOLIS OMAHA AND TAMPA FLA THE COMPANY WHICH HAS ANNUAL REVENUE OF 45 BILLION PLANS TO EXPAND SALES TO OTHER CITIES AND SELL CUTS OF FARMLAND BEEF AS WELL OTHER PRODUCT POSSIBILITIES POULTRY AND EVEN TORTILLAS THEY'RE SETTING THEMSELVES UP TO BE A REASONABLY MAJOR PLAYER IN CONSUMER FOODS SAYS JOHN URBANCHUK A PHILADELPHIA AGRIBUSINESS CONSULTANT THEY'RE IN AN IDEAL POSITION TO EXPAND MORE INTO THE FOOD BUSINESS AND IT MAKES SOME SENSE FOR THEM TO DO THIS SIMULTANEOUSLY THE COMPANY HAS BEEN UNLOADING ITS STAKE IN TRADITIONAL BUSINESSES PLANTS THAT GRIND OUT SUPPLIES FOR FARMERS SUCH AS PHOSPHATE FERTILIZER AND DIESEL FUEL THERE HAVE BEEN MORE ACQUISITIONS JOINT VENTURES AND SALES IN THE PAST YEAR THAN EVER IN OUR HISTORY SAYS ROBERT W HONSE FARMLAND'S EXECUTIVE VICE PRESIDENT FOR FARMLAND THE RISK INVOLVES JUMPING INTO TWO MAJOR BUSINESSES GRAIN TRADING AND BEEF SLAUGHTER THAT ALREADY ARE TROUBLED LAST JULY FARMLAND ACQUIRED UNION EQUITY OF ENID OKLA A COOPERATIVE WITH 1 BILLION A YEAR IN SALES THAT SPECIALIZES IN THE HARVEST AND EXPORT OF HARD RED WINTER WHEAT THE PRIME GRAIN IN WHEAT BREAD FARMLAND ALSO BOUGHT A HALFINTEREST IN THE HYPLAINS LC BOXEDBEEF PLANT IN DODGE CITY KAN AND IS ACQUIRING A SHARE OF A SECOND MAJOR BEEF SLAUGHTERHOUSE NATIONAL BEEF CO IN LIBERAL KAN THE ACQUISITIONS ARE EXPECTED TO MAKE FARMLAND THE NATION'S FOURTHLARGEST CATTLE SLAUGHTERER THE COMPANY'S BUYING DRIVE ALSO INCLUDED THE PURCHASE OF CARANDO CO AN ITALIANMEATS COMPANY IN SPRINGFIELD MASS AND OF AN INTEREST IN A KANSAS CITY FLOUR MILL IT ALSO PLANS TO BUILD A FACILITY IN RUSSELL KAN TO PROCESS WHEAT INTO GLUTEN WHICH HOLDS WHOLEGRAIN BREAD TOGETHER AND FARMLAND ISN'T DONE YET IT'S STILL STALKING THE PLAINS IN SEARCH OF A TORTILLA COMPANY TO BUY PLUS ADDITIONAL FLOUR MILLING CAPACITY AND POSSIBLY EVEN A POULTRY OPERATION WE'RE GOING TO CONTINUE TO LOOK FOR OPPORTUNITIES IN GRAIN AND BEEF SAYS GARY E EVANS SENIOR VICE PRESIDENT THE GOAL TO ATTAIN A GREATER RETAIL FOOD PRESENCE AND AN OUTLET FOR THE WHEAT CORN PORK AND CATTLE RAISED BY ITS MEMBER FARMERS AND COOPERATIVES HOWEVER FARMLAND'S PATH TOWARD A HIGHERPROFILE PRESENCE IN THE FOOD INDUSTRY FACES A MINEFIELD THE GRAIN TRADE AND MEATPACKING ARE TWO HIGHLY COMPETITIVE BUSINESSES WITH THIN PROFIT MARGINS AMERICANS ARE EATING LESS RED MEAT BEEFPACKING PLANTS WHICH RELY ON HIGH VOLUME FOR PROFITABILITY HAVE BEEN OPERATING AT ONLY ABOUT 75 CAPACITY INDUSTRY LEADER IBP INC RECENTLY ADDED TO THE NATION'S SLAUGHTERHOUSE CAPABILITY WHEN IT BUILT A NEW BEEF PLANT IN LEXINGTON NEB THERE'S TOO MUCH CAPACITY GOING AFTER TOO LITTLE BEEF MAINTAINS JOHN M MCMILLIN A PRUDENTIAL SECURITIES FOOD INDUSTRY ANALYST SOME OF THE COMPANIES ARE JUST HOLDING ON BY A SHOESTRING AND THE INTERNATIONAL GRAIN TRADE DOMINATED BY SUCH CLOSELY HELD COMPANIES AS CARGILL INC AND CONTINENTAL GRAIN CO HAS BEEN A DEPRESSED INDUSTRY FOR ABOUT 10 YEARS SAYS ANALYST WILLIAM LEACH OF DONALDSON LUFKIN & JENRETTE BUT FARMLAND IS WELLVERSED AT SURVIVAL IN BELEAGUERED BUSINESSES AGRICULTURAL COOPERATIVES LIKE AMERICA'S FARMS WENT THROUGH TRYING TIMES IN THE MID1980S COOPERATIVES WHICH SHARE PROFITS WITH MEMBER FARMERS WERE STARTED IN THE LATE 1800S AS A MEANS FOR SMALL FARMERS TO BAND TOGETHER TO GET BUYING AND SELLING CLOUT BUT IN THE 1980S ABOUT ONEFIFTH OF THEM WEIGHED DOWN BY DEBT MERGED OR WERE DEVOURED BY OTHER COOPS FARMLAND SHOWED LOSSES OF 341 MILLION IN 1985 AND 1564 MILLION IN 1986 BUT IT DUG OUT FROM UNDER ITS DEBT LOAD HACKED AWAY AT OPERATING COSTS AND ELIMINATED 1000 WHITECOLLAR JOBS TODAY FARMLAND HAS ABOUT 8000 WORKERS ALTHOUGH EARNINGS HAVE SINCE BEEN INCONSISTENT FARMLAND AT LEAST HAS BEEN IN THE BLACK EACH YEAR SINCE 1987 AND SINCE 1988 IT HAS BEEN ABLE TO MAKE MILLIONS OF DOLLARS IN SOCALLED PATRONAGE PAYMENTS ROUGHLY AKIN TO DIVIDENDS TO ITS 1800 MEMBER COOPERATIVES THESE LOCAL COOPS WHICH INCLUDE 250000 FARMERS ARE LOCATED IN 19 STATES MOSTLY IN THE GREAT PLAINS IN 1988 IT EXPLORED A MERGER WITH DAIRY COOP LAND O' LAKES INC AND CHEMICALPETROLEUM COOP CENEX BUT THE DEAL FELL THROUGH FARMLAND STILL INDEPENDENT IS REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION WHILE IT DOESN'T ISSUE STOCK PUBLICLY IT DOES SELL DEBT SECURITIES TO STRENGTHEN ITS FOOD HOLDINGS WHICH FARMLAND CALLS THE FARM OUTPUT SIDE IT HAS HAD TO UNLOAD SOME HOLDINGS ON THE FARM INPUT SIDE IT CLOSED A PETROLEUM REFINERY IN PHILLIPSBURG KAN SOLD PART OF ANOTHER ONE IN MCPHERSON KAN AND SOLD HALF OF ITS PHOSPHATE PLANT IN BARTOW FLA IT ALSO SOLD A BATTERY FACTORY IN KANSAS CITY FARMLAND ISN'T GETTING OUT OF THE FARM INPUT SIDE WHICH NOW ACCOUNTS FOR ABOUT TWOTHIRDS OF REVENUE BUT IS SHIFTING ITS EMPHASIS TOWARD FOOD THE COMPANY NOW SEEKS TO FORGE CUSTOMER LOYALTY AND THUS SEIZE GUARANTEED FUTURE CUSTOMERS FOR CROPS AND LIVESTOCK HARRY D CLEBERG FARMLAND'S CHIEF EXECUTIVE OFFICER SAYS SOME OF THIS STRATEGY SPRINGS FROM DECADESOLD LESSONS TAUGHT HIM BY HIS SOUTH DAKOTA GRANDFATHER A GRAIN ELEVATOR WORKER ONE OF THE LESSONS FARMERS WERE AT THE MERCY OF GRAIN COMPANIES AFTER LOADING AND HAULING CROPS TO SELL AT GRAIN ELEVATORS FARMERS WERE CONFRONTED BY ELEVATOR BOSSES CLAIMING NOT TO BE BUYING GRAIN THAT DAY DESPERATE THE FARMERS WOULD SELL CROPS AT MEAGER PRICES IN SEEKING A DEPENDABLE CUSTOMER BASE FARMLAND IS FURTHEST ALONG IN PORK SLAUGHTER AND SALES ALREADY A 900 MILLIONAYEAR BUSINESS FARMLAND'S GRAND STRATEGY IS TO PARTICIPATE IN ADDING VALUE TO FARM PRODUCTS AS THEY BECOME RETAIL PRODUCTS SAYS MARK DRABENSTOTT VICE PRESIDENT AND ECONOMIST WITH THE FEDERAL RESERVE BANK IN KANSAS CITY CONSUMERS ARE BECOMING FAR MORE SPECIFIC IN WHAT THEY WANT TO PURCHASE HE SAYS COMPANIES THAT CAN DELIVER DIFFERENTIATED PRODUCTS ARE GOING TO BE REWARDED 9302160077 930216 UAL PLANS TO FORM A UNIT TO LEASE AND SELL AIRCRAFT SPECIAL TO THE WALL STREET JOURNAL CHICAGO UAL CORP THE PARENT OF UNITED AIRLINES SAID IT WILL FORM A SUBSIDIARY TO LEASE AND SELL NEW AND USED AIRPLANES THAT UNITED DOESN'T NEED THE COMPANY OFFERED FEW DETAILS OF THE PLAN AND SAID THE DATE FOR THE SUBSIDIARY TO BEGIN OPERATING HASN'T BEEN SET PEOPLE FAMILIAR WITH THE COMPANY SAID THAT UAL IS FORMING THE UNIT IN AN ATTEMPT TO PRESSURE ITS LABOR GROUPS TO AGREE TO CONCESSIONS IN RECENT WEEKS UAL HAS IMPLEMENTED A 400 MILLION COSTREDUCTION PLAN THAT INCLUDED CUTTING 10 OF ITS 50 CORPORATE OFFICERS AND ELIMINATING 2800 OTHER JOBS THE COMPANY ALSO HAS ASKED ITS LABOR GROUPS TO TAKE A 5 PAY CUT FOR A YEAR DEFER WAGEANDEXPENSE INCREASES FOR TWO YEARS AND BEGIN PAYING PART OF THEIR MEDICALINSURANCE COSTS SO FAR THE LABOR GROUPS HAVE REFUSED TO AGREE TO SUCH GIVEBACKS TWO WEEKS AGO WHILE ANNOUNCING A 1992 LOSS OF 957 MILLION UAL WARNED THAT UNLESS THE UNIONS CAPITULATE THE AIRLINE WOULD BE FORCED TO TAKE ALTERNATIVE COSTCUTTING MEASURES BY SETTING UP THE SUBSIDIARY PEOPLE FAMILIAR WITH THE PLAN SAY UNITED IS PREPARING TO PULL DOWN SERVICE FROM ROUTES THAT AREN'T PROFITABLE SUCH A MOVE APPARENTLY WOULD LEAD TO FURTHER LAYOFFS 9302160076 930216 ECONOMY KUWAIT IS KEY TO OPEC PACT ON OUTPUT CUT EMIRATE BALKS AT THE QUOTA CARTEL WANTS DISPUTES FIGURES ON PRODUCTION BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL VIENNA OPEC OIL MINISTERS LAST NIGHT WERE STRUGGLING TO COMPLETE WHAT THEY HOPED WAS AN AGREEMENT TO SHORE UP THE PRICE OF OIL BY CUTTING PRODUCTION THE EMERGING AGREEMENT WOULD REDUCE THE FLOW OF OIL FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO THE WORLD'S MARKETS BY ABOUT 14 MILLION BARRELS A DAY TO 236 MILLION BARRELS A DAY IT WOULD BE EFFECTIVE MARCH 1 AND CONTINUE THROUGH THE SECOND QUARTER WHEN THERE IS A SEASONAL DECLINE IN DEMAND NEVERTHELESS CONSENSUS HAS BEEN DIFFICULT TO DEVELOP IN THE TALKS THAT BEGAN SATURDAY DURING THE TALKS THE OIL MINISTERS WERE TRIPPED UP TIME AND AGAIN BY THE SAME OBSTACLE KUWAIT'S DISINCLINATION TO CURB ITS PRODUCTION UNTIL LATE LAST NIGHT THE PLAN PUSHED BY THREE OF OPEC'S LARGEST PRODUCERS SAUDI ARABIA IRAN AND VENEZUELA SEEMED TO GO AWRY THEY HAD COMBINED THEIR EFFORTS TO SEEK A QUICK SETTLEMENT AND GIVE A PRICING JOLT TO SLUGGISH OIL MARKETS ALTHOUGH THEY WANTED TO SHOW THAT OPEC COULD RESTORE ITS ABILITY TO FINETUNE ITS OUTPUT TO BALANCE OIL SUPPLIES WITH DEMAND THE DISCORD SEEMED TO SEND THE OPPOSITE MESSAGE IN TRADING YESTERDAY WHICH WAS THIN BECAUSE OF THE US PRESIDENTS DAY HOLIDAY PETROLEUM PRICES FELL IN SOME MARKETS ON THE INTERNATIONAL PETROLEUM EXCHANGE THE BRENT BLEND CRUDE FELL 25 CENTS A BARREL TO 1796 LAST NIGHT KUWAIT'S OIL MINISTER SAID HE HAD COMPROMISED TO A LARGE EXTENT WE HAVE BEEN VERY FLEXIBLE SAID ALI AHMAD ALBAGHLI THE BALL IS IN THEIR COURT BUT HE SAID HE HAD ATTACHED CONDITIONS TO HIS ACCEPTANCE OF A NEW QUOTA FOR KUWAIT OF 16 MILLION BARRELS A DAY DOWN FROM CURRENT PRODUCTION THAT HE CLAIMS IS AROUND TWO MILLION BARRELS A DAY THE CONDITIONS ARE SAID TO INCLUDE KUWAIT BEING ENTITLED TO A HIGHER PRODUCTION LEVEL FOR THE THIRD QUARTER WHEN OIL DEMAND BEGINS ITS SEASONAL INCREASE KUWAITI OFFICIALS AGREED WITH THE OTHERS THAT OVERALL OPEC OUTPUT SHOULD BE REDUCED SIGNIFICANTLY FROM THE CURRENT 25 MILLION BARRELS A DAY BUT THEY RESISTED ATTEMPTS TO COERCE THEM INTO REDUCING KUWAITI OUTPUT BY WHAT THEY SAID WAS MORE THAN 25 WHILE OTHERS REDUCED THEIRS ABOUT 4 SINCE KUWAIT WAS LIBERATED FROM OCCUPYING IRAQI TROOPS IN EARLY 1991 IT HAS BEEN EXEMPTED FROM OPEC'S QUOTAS SO THAT IT COULD RESTORE ITS WARDAMAGED OIL INDUSTRY UNDER THAT ARRANGEMENT IT HAS BEEN RAPIDLY INCREASING ITS CAPACITY AND PRODUCING AS MUCH AS IT COULD IN NOVEMBER THE OIL MINISTERS HAD AGREED ON A PRODUCTION CEILING OF 246 MILLION BARRELS A DAY FOR THE 1993 FIRST QUARTER MEANWHILE SOME OTHER OPEC COUNTRIES EXCEEDED THEIR QUOTAS HELPING WEAKEN PRICES JEAN PING GABON'S OIL MINISTER SAID THAT THE UNDERSTANDING WITHIN OPEC WAS THAT KUWAITI OUTPUT WOULD RISE IN THIS PERIOD ONLY TO AROUND 17 MILLION BARRELS A DAY AND THIS IS PROBABLY WHAT KUWAIT IS PRODUCING RIGHT NOW SEVERAL OPEC DELEGATES SAID IN DISPUTING THE KUWAITI CLAIMS OF A MORE STARTLING INCREASE IN THE PAST TWO MONTHS KUWAIT SAID IT WAS WILLING TO CUT ITS OUTPUT BY AROUND THE 4 BEING GENERALLY APPLIED TO OTHERS BUT IT WANTED TO USE ITS ANTICIPATED OUTPUT OF 21 MILLION BARRELS A DAY AT THE END OF THE FIRST QUARTER AS ITS STARTING POINT CITING THE NEEDS OF ITS WARRAVAGED ECONOMY BUT THE OTHERS PRESSED FOR A CUT FROM A BASE OF 15 MILLION BARRELS A DAY MANY OF THE POORER OPEC NATIONS SAID THEY ALSO HAD ECONOMIC TROUBLES AND WEREN'T SYMPATHETIC TO THE ARGUMENTS PUT FORWARD BY KUWAIT MOREOVER SOME SOME OF THESE COUNTRIES HAD DEMANDED ADJUSTMENTS IN PROPOSED QUOTAS TO ACCOMMODATE SPECIAL NEEDS OF THEIR OWN THE MINISTERS WERE WORKING LATE INTO THE NIGHT TO RESOLVE THESE ISSUES AND COMPLETE THE AGREEMENT BY THIS MORNING IT IS MOST LIKELY A DONE DEAL SAID ONE DELEGATE 9302160075 930216 MARKETSCAN TETLEY HOPES TO RESHAPE THE TEA MARKET BY KATHLEEN DEVENY TEA HOW GENTEEL DON'T BET ON IT THE TEA BUSINESS ONCE EVER SO POLITE IS FAST BECOMING A BATTLEGROUND THOMAS J LIPTON CO A UNIT OF ANGLODUTCH UNILEVER GROUP HAS LONG DOMINATED THE SLOWGROWING US MARKET FOR TEA BUT NEW COMPETITION BEGAN BREWING LAST YEAR WHEN TETLEY INC A UNIT OF ALLIEDLYONS PLC TESTED ROUND TEA BAGS IN NORTHEASTERN CITIES NOW TETLEY IS PREPARING TO ROLL OUT THE ROUND BAGS NATIONALLY AND SAYS IT WILL SPEND 35 MILLION TO COAX CONSUMERS TO TRY THEM LIPTON IS STEAMED IN AN UNCHARACTERISTIC MOVE THE COMPANY HAS RUN SEVERAL LOCAL TELEVISION AND PRINT ADS POKING FUN AT ITS ROUND RIVAL IN ONE A NARRATOR POINTS OUT THAT LIPTON BAGS DON'T MERELY COME WITH FIRSTRATE TEA THEY ALSO INCLUDE A TAG AND STRING MEANWHILE A TOY CRANE ROLLS INTO THE FRAME AND PLUCKS OUT A DRIPPING ROUND TEA BAG SANS STRING AND TAG A PRINT AD SHOWING A PLAIN ROUND BAG AND A LIPTON BAG DANGLING FROM A TAG AND STRING ASKS WHICH WOULD YOU RATHER PULL OUT OF A STEAMING CUP OF TEA THE LIPTON ADS DON'T NAME NAMES BUT TETLEY IS THE ONLY MAJOR MARKETER OF A ROUND BAG IN THE US AT LEAST WE KNOW THEY ARE TAKING US SERIOUSLY SAYS MARK TIMBIE VICE PRESIDENT OF MARKETING AND SALES AT TETLEY WE THINK WE'VE GOT A WINNER ON THE SURFACE THOUGH LIPTON HAS LITTLE TO FEAR THE UNILEVER UNIT REIGNS OVER THE 600 MILLION US MARKET FOR TEA BAGS AND LOOSE TEA WITH A 413 SHARE BUT SALES HAVE BEEN SLIPPING LATELY AS AGGRESSIVE RIVALS NIP AWAY AT ITS LEAD LIPTON'S SALES IN SUPERMARKETS FELL 17 TO 2482 MILLION DURING THE 52 WEEKS ENDED DEC 27 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE TETLEY AND BIGELOW BRANDS POSTED SALES INCREASES OF 79 AND 62 RESPECTIVELY SALES OF CELESTIAL SEASONINGS INC THE LEADING MAKER OF HERBAL TEAS JUMPED 108 TO 626 MILLION THE MOUNTING COMPETITION COMES AT A TIME WHEN TRADITIONAL TEA MARKETERS ARE FINDING IT INCREASINGLY DIFFICULT TO PERSUADE NEW CUSTOMERS TO CURL UP WITH A STEAMY CUP TEA HAS LONG BEEN POSITIONED AS A SOFTER ALTERNATIVE TO COFFEE IT HAS ABOUT ONETHIRD LESS CAFFEINE AND HAS BEEN PITCHED PRIMARILY TO WOMEN OVER THE AGE OF 25 IN FACT TEA HAS FARED BETTER THAN COFFEE IN THE HEALTHCONSCIOUS 1990S LAST YEAR SUPERMARKET SALES OF GROUND AND INSTANT COFFEES AND COFFEE BEANS DECLINED NEARLY 7 ACCORDING TO INFORMATION RESOURCES WHILE SALES OF TEA BAGS AND LOOSE TEA GREW A BIT LESS THAN 1 BUT RELATIVE TO CARBONATED BEVERAGES MAKING TEA IS INCONVENIENT AND EVEN WITH SUGAR ADDED IT ISN'T SWEET ENOUGH TO LURE YOUNG CONSUMERS HOOKED ON CARBONATED DRINKS TO BROADEN THEIR MARKET MAJOR TEA MAKERS HAVE BEEN LAUNCHING READYTODRINK ICEDTEA PRODUCTS LIPTON HAS TEAMED UP WITH PEPSICO INC TO SELL LIPTON ORIGINAL TEA WHILE NESTLE SA IS JOINING FORCES WITH COCACOLA CO TO SELL A READYTODRINK TEA OF ITS OWN CELESTIAL SEASONINGS IS PLANNING A LINE OF BOTTLED HERBALTEA PRODUCTS AND TETLEY HAS JOINED FORCES WITH A&W BRANDS INC TO MARKET A BRAND ALTHOUGH THE NEW COLD DRINKS MAY EVENTUALLY INTRODUCE MORE CONSUMERS TO TEA THEY HAVEN'T SPURRED A SIGNIFICANT INCREASE IN HOME BREWING SO FAR AND THEY HAVE CUT INTO SALES OF INSTANT TEAS THE WEAKEST SEGMENT OF THE TEA MARKET IT REMAINS TO BE SEEN IF CONSUMERS WILL BUY TETLEY'S ASSERTION THAT IT HAS TRULY BUILT A BETTER BAG THE COMPANY MAINTAINS THAT TETLEY ROUND TEA BAGS ACTUALLY MAKE A BETTER CUP OF TEA THE TETLEY BAGS CONTAIN A BLEND OF ORANGE PEKOE AND PEKOE CUT BLACK TEA THAT IS SLIGHTLY DIFFERENT FROM TETLEY'S OTHER PRODUCTS IN ADDITION THE ROUND BAGS CONTAIN MORE TEA THAN SQUARE RIVALS AND THEY ARE MADE OF PAPER THAT IS MORE POROUS TETLEY SAYS BOTH FEATURES ALLOW FOR FASTER BREWING WHICH IT CLAIMS MEANS LESS BITTERNESS CONVENTIONAL TEA DRINKERS CAN STILL BUY SQUARE TETLEY BAGS WITH STRINGS AND TAGS TETLEY IS HOPING ITS PRODUCT'S UNCONVENTIONAL SHAPE WILL GRAB TEA DRINKERS' ATTENTION ADS FOR THE TETLEY ROUND TEA BAGS WHICH ARE SCHEDULED TO BREAK IN APRIL FEATURE A PORTLY REDHEADED WAITRESS WHO IS IRRITATED BECAUSE SHE CAN'T FIGURE OUT WHY TETLEY BAGS ARE ROUND IN ONE COMMERCIAL SHE ASKS A PANEL OF HER CUSTOMERS TO CHOOSE BETWEEN ICED TEA MADE FROM NICE NORMAL SQUARE BAGS AND TEA FROM RADICAL NEW TETLEY BAGS EACH COMMERCIAL CLOSES WITH THE QUESTION WHY IS IT ROUND MARKETING EXPERTS SAY THE STRATEGY COMBINED WITH TETLEY'S HEFTY PROMOTIONAL BUDGET IS LIKELY TO PERSUADE SOME CUSTOMERS TO TRY THE BRAND BECAUSE MANY SHOPPERS INTERPRET NEW TO MEAN IMPROVED SOME ARE LIKELY TO ASSUME THE ROUND BAG MUST SIGNAL SOME OTHER PRODUCT BENEFITS TETLEY'S MR TIMBIE MAINTAINS THE NEW APPEARANCE HELPED CATAPULT THE ROUND BAGS OVER UNILEVER'S PG TIPS BRAND INTO THE NO 1 POSITION IN THE BRITISH MARKET FOR TEA BAGS IT ALSO HELPED THE COMPANY EXPAND ITS LEAD IN CANADA MR TIMBIE SAYS BUT TOUTING THE SHAPE OF A PRODUCT OVER CONCRETE CONSUMER BENEFITS SUCH AS TASTE AND CONVENIENCE IS RISKY A FEW BRANDS INCLUDING LIFE SAVERS CANDIES MILKBONE DOG BISCUITS AND L'EGGS PANTYHOSE HAVE BEEN ABLE TO INCORPORATE PRODUCT OR PACKAGING SHAPE INTO THEIR BRAND IDENTITY BUT MANY DESIGN INNOVATIONS ARE DIFFICULT TO TRADEMARK AND EASY FOR COMPETITORS TO COPY SOME CONSULTANTS ARE SKEPTICAL THAT TETLEY BUYERS WILL NOTICE A SIGNIFICANT DIFFERENCE IN TASTE THE MAIN REASON FOR REPEAT PURCHASES OF FOOD AND BEVERAGES THERE IS A LOT OF BRAND EQUITY BUILT UP IN THE LIPTON NAME SAYS SCOTT DAVIS A PRINCIPAL WITH KUCZMARSKI & ASSOCIATES A CHICAGO NEWPRODUCTS CONSULTING FIRM BUT UNLESS YOU CAN CONVINCE CONSUMERS THAT YOUR PRODUCT DIFFERENTIATION ADDS SOME REAL VALUE YOU WON'T GET THEM TO COME BACK AND BUY AGAIN NONETHELESS LIPTON IS TAKING THE THREAT SERIOUSLY THE COMPANY IS KEEPING MUM ABOUT WHETHER IT WILL RUN MORE ADS THAT TAUNT TETLEY BUT IT HAS ALREADY UNLEASHED A BARRAGE OF PROMOTIONS IN NORTHEASTERN MARKETS OFFERING COUPONS WORTH 1 AND EVEN 2FOR1 SPECIALS IN SOME SUPERMARKETS AND THOUGH LIPTON EXECUTIVES WON'T COMMENT DIRECTLY ON THE MERITS OR FLAWS OF ROUND TEA BAGS THEY SAY THE COMPANY REMAINS COMMITTED TO ITS VENERABLE FLOTHRU TEABAG DESIGN WHICH SEPARATES THE TEA INTO TWO COMPARTMENTS SO THAT WATER CAN FLOW THROUGH THE MIDDLE FOR NOW AT LEAST ALL LIPTON TEA BAGS WILL COME COMPLETE WITH TAGS AND STRING IT REMAINS A VERY GOOD WAY OF INFUSING TEA SAYS ROBERT AO DAVIDSON SENIOR VICE PRESIDENT OF MARKETING FOR LIPTON WE'VE FOUND FEW WAYS TO BEAT IT LIPTON DOMINATES THE US MARKET FOR TEA BAGS BUT A MARKETING BATTLE IS SHAPING UP AS TETLEY PREPARES TO ROLL OUT A ROUND TEA BAG NATIONALLY 9302160074 930216 INTERNATIONAL WESTERN LENDERS WARY OF THROWING GOOD MONEY AFTER BAD IN AID TO RUSSIA BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN VICE PREMIER BORIS FYODOROV HAS GONE TO WASHINGTON TO MEET WITH TOP OFFICIALS OF THE INTERNATIONAL MONETARY FUND AND WORLD BANK HIS AGENDA ISN'T CLEAR BUT IF IT'S MONEY HE'S AFTER HE'S GOING TO HAVE A HARD TIME THE MONETARY STABILIZATION PROGRAM THAT RUSSIA EMBARKED ON LAST JANUARY AND THEN REFINED WITH THE HELP OF THE IMF IN JULY IS IN TATTERS THE ECONOMY IS ON THE BRINK OF HYPERINFLATION THE FLIGHT OF INVESTMENT CAPITAL FROM RUSSIA BY THE LATEST OFFICIAL ESTIMATES HAS REACHED 30 BILLION AND DESPITE OUTWARD PROMISES OF A COHESIVE POLICY TO FIGHT INFLATION THE GOVERNMENT HAS TAKEN FEW CONCRETE STEPS TO SHOW IT CAN DO WHAT IT SAYS NOW THE IMF WHICH HAS TAKEN THE LEAD IN GIVING RUSSIA THE BENEFIT OF THE DOUBT IS TAKING A TOUGHER STANCE HAVING IN THE PAST SEEN RUSSIA'S PROMISES RESULT IN VIRTUAL INACTION IT ISN'T PLANNING TO BE SO LENIENT NEXT TIME AROUND MANAGING DIRECTOR MICHAEL CAMDESSUS IN AN INTERVIEW WITH THE RUSSIAN NEWSPAPER IZVESTIA EARLIER THIS MONTH WARNED THAT WHILE THE IMF ISN'T GIVING UP ON RUSSIA THE WORLD WOULDN'T UNDERSTAND IF THE COUNTRY BROKE ITS COMMITMENTS TWICE BECAUSE RUSSIA HAS BACKTRACKED MR CAMDESSUS SAYS THE 6 BILLION RUBLESTABILIZATION FUND HAS BEEN SHELVED TO WAIT FOR BETTER TIMES OTHER PARTS OF THE 24 BILLION PACKAGE HAVE ALREADY BEEN PAID OUT IN CREDITS HE SAID BUT THERE WON'T BE ANY MORE FUNDING UNTIL RUSSIA'S OVERALL ECONOMIC SITUATION IS STABILIZED MEANWHILE THE PARIS CLUB WHICH IS DECIDING THE TERMS OF RUSSIA'S 70 BILLION FOREIGNDEBT REPAYMENT IS HINTING THAT IT IS ALSO GROWING LESS PATIENT RUSSIAN VICE PREMIER ALEXANDER SHOKHIN RETURNED TO MOSCOW LAST WEEK REPORTING THAT THE CLUB WAS INSISTING ON RUSSIA PAYING 6 BILLION IN 1993 TO SERVICE THE DEBTS REALISTICALLY RUSSIA CAN'T PAY MORE THAN 25 BILLION SAID MR SHOKHIN THE IMF MONITORS RUSSIA'S REFORMS ON BEHALF OF THE SEVEN WESTERN COUNTRIES THAT CONTRIBUTE THE AID AND DECIDE HOW MUCH OF RUSSIA'S FOREIGN DEBT TO FORGIVE LAST YEAR THE IMF SUPPORTED THE 24 BILLION AID PACKAGE BASED ON A PROGRAM DEVELOPED BY THENPRIME MINISTER YEGOR GAIDAR AND OTHER MEMBERS OF THE RUSSIAN GOVERNMENT THE PROGRAM CALLED FOR RESTRICTING CREDITS TO STATE ENTERPRISES AND BALANCING THE GOVERNMENT'S HEFTY BUDGET DEFICIT THE HOPE WAS TO STABILIZE THE RUBLE AND DECLARE IT CONVERTIBLE ON THE WORLD MARKET FORCING STATE ENTERPRISES TO BECOME SELFSUFFICIENT WAS SUPPOSED TO JUMPSTART RUSSIA'S LOWPRODUCING ECONOMY BUT MR GAIDAR'S POLICIES WERE UNPOPULAR WITH THE PARLIAMENT AND BEFORE HE WAS FORCED OUT OF OFFICE IN DECEMBER HE HAD SERIOUSLY COMPROMISED HIS OWN PROGRAM ACCORDING TO MR CAMDESSUS IT WAS ABANDONED AS SOON AS IT WAS APPROVED THE MAIN PROBLEMS WERE THAT THE GOVERNMENT AND CENTRAL BANK FAILED TO TAKE THE PROPER POLITICAL STEPS OR DEVELOP EFFECTIVE MECHANISMS FOR WEANING STATE ENTERPRISES FROM GOVERNMENT AID AS A RESULT THE BANK PUMPED OUT TRILLIONS OF RUBLES IN CREDITS INFLATION AT THE BEGINNING OF JANUARY HIT 10 A WEEK AND THE RUBLE IS NOW TRADING AT AN ALLTIME LOW OF 660 RUBLES TO THE DOLLAR COMPARED WITH 100 RUBLES A YEAR AGO MR CAMDESSUS ACCUSES THE RUSSIAN GOVERNMENT OF HAVING WILLINGLY OR NOT DESTROYED THE CONDITION FOR AN EARLY STABILIZATION OF THE RUBLE AND THE ECONOMY AND CONSEQUENTLY ACTIVATION OF THIS FUND HE BLAMES BOTH THE GOVERNMENT AND CENTRAL BANK FOR FAILING TO CONTROL INFLATION THUS CONTRIBUTING TO THE RUBLE'S DESCENT AND THE FLIGHT OF HARD CURRENCY IF THE STABILIZATION FUND HAD BEEN DISBURSED MR CAMDESSUS SAYS IT QUICKLY WOULD HAVE LANDED IN ACCOUNTS IN PARIS GENEVA LONDON OR ZURICH WHERE MOST OF THE COUNTRY'S HARD CURRENCY IS ASSUMED TO BE SITTING AT THE TOP OF MR CAMDESSUS'S ANXIETIES ABOUT RUSSIA IS THE THREAT OF HYPERINFLATION THOUGH DEFINITIONS VARY IT IS GENERALLY ASSUMED THAT INFLATION OF 50 OR HIGHER IN THREE CONSECUTIVE MONTHS CONSTITUTES HYPERINFLATION AND RUSSIA IS VERY CLOSE HYPERINFLATION MAKES REFORMS DIFFICULT BECAUSE MONEY LOSES ALL VALUE AT THE END OF THE DAY IT IS MOST DANGEROUS FOR DEMOCRACY ITSELF SAYS MR CAMDESSUS MANY DEMOCRACIES IN THE WORLD HAVE BEEN KILLED BY HYPERINFLATION THE MAIN JOB NOW FOR MR FYODOROV WILL BE TO OUTLINE CONVINCINGLY AND CONCRETELY HOW HE PLANS TO IMPLEMENT THE ORIGINAL IMF PROGRAM MR CAMDESSUS ALSO SAYS IT'S POSSIBLE THAT THERE WILL BE A NEW PROGRAM THAT THE IMF COULD ENDORSE MR FYODOROV IS AFTER ALL ONLY SIX WEEKS INTO HIS NEW ROLE MR CAMDESSUS SAYS THE IMF IS WILLING TO TAKE PLENTY OF TIME TO MAKE SURE THE PROGRAM WILL WORK THERE ARE SOME PROMISING SIGNS MR FYODOROV HAS ALREADY OUTLINED AMBITIOUS GOALS INCLUDING REDUCING INFLATION TO 5 A MONTH BY THE END OF THE YEAR AND BRINGING THE BUDGET DEFICIT TO WITHIN 5 OF THE GROSS NATIONAL PRODUCT RUSSIA'S NEW PRIME MINISTER VIKTOR CHERNOMYRDIN SAYS HE SUPPORTS THE MEASURES TO FIGHT INFLATION BUT MR FYODOROV HASN'T ANSWERED SOME POLITICALLY DICEY QUESTIONS SUCH AS HOW CREDIT WILL BE DISTRIBUTED A DECISION ON MORE AID IS DEPENDENT NOT ESSENTIALLY ON THE GENEROSITY OF THE WEST BUT ON THE CREDIBILITY OF RUSSIA'S OWN POLICIES SAYS MR CAMDESSUS 9302160073 930216 PRICE WATERHOUSE COPYING CHARGES STIR RTC REVIEW BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRICE WATERHOUSE CHARGED GOVERNMENT THRIFT REGULATORS 67 CENTS A PAGE FOR COPYING MORE THAN 10 MILLION DOCUMENTS IN REVIEWING THE ASSETS OF A FAILED SAVINGS AND LOAN ACCORDING TO THE INSPECTOR GENERAL'S OFFICE OF THE RESOLUTION TRUST CORP THE GOING RATE FOR COMPARABLE COPYING JOBS IS ABOUT 12 TO 15 CENTS A PAGE AN ASSISTANT RTC INSPECTOR GENERAL SAID TREASURY SECRETARY LLOYD BENTSEN INDICATED IN A LETTER YESTERDAY TO RTC CHIEF EXECUTIVE ALBERT CASEY THAT THIS MAY BE ONE OF MANY PROBLEMS WITH HOMEFED CONTRACTS NOTING THAT INVESTIGATORS ARE EXAMINING FEES THAT HAVE BEEN OR WILL BE PAID IN THE CASE MR BENTSEN SAID OF TOTAL FEES OF ABOUT 100 MILLION IT WOULD APPEAR THAT MUCH OF THIS REPRESENTS EXCESSIVE COSTS AND EXCESSIVE MARKUPS BY CONTRACTORS MR BENTSEN WHO IS CHAIRMAN OF A BOARD THAT OVERSEES THE RTC URGED MR CASEY TO CONDUCT A THOROUGH PROBE OF THESE CONTRACTS AND TAKE STEPS TO RECOVER EXCESSIVE PAYMENTS LEADERS OF THE HOUSE BANKING COMMITTEE DEMANDED A PROMPT ACCOUNTING BY THE RTC WHILE AN RTC OFFICIAL SAID THE SITUATION WAS MAINLY THE FAULT OF THE AGENCY TOGETHER WITH RELATED DOCUMENTMANAGEMENT CHARGES THE LAWMAKERS SAID THE AGENCY HAD A COPYING COST OVERRUN OF ABOUT 12 MILLION IN THE ASSET REVIEW OF HOMEFED BANK SAN DIEGO PRICE WATERHOUSE DENIED THERE WAS A COST OVERRUN AND CHALLENGED THE PERCOPY COST FIGURE THE FIRM SAID THE CONTRACT PRICE WASN'T FIXED BUT WAS BASED ON THE COST OF TIME AND MATERIALS PRICE WATERHOUSE ACKNOWLEDGED IN A STATEMENT THAT THE SCOPE OF THE WORK EXCEEDED WHAT WE AND THE RTC ORIGINALLY ANTICIPATED BUT SAID MUCH OF THE EXPANSION STEMMED FROM PROCEDURES MANDATED BY A JUSTICE DEPARTMENT SUBPOENA AS PART OF THAT AGENCY'S INVESTIGATION INTO HOMEFED SHARON VANDER VENNET AN ASSISTANT RTC INSPECTOR GENERAL SAID THE 67CENTAPAGE COPYING CHARGE COVERED ONLY LABOR AND THE FIGURE RISES IF EXPENSES SUCH AS MACHINE AND PAPER COSTS ARE FACTORED IN WHAT'S MORE SHE SAID PRICE WATERHOUSE USED TEMPORARIES TO DO THE COPYING AND BILLED THE RTC AN AVERAGE OF 35 AN HOUR PER WORKER AFTER BEING BILLED LESS THAN HALF THAT AMOUNT FOR THE TEMPORARY LABOR PRICE WATERHOUSE SAID ALL COPYING WORK DONE WAS PERFORMED BY CLERICAL PERSONNEL AND WAS BILLED TO THE RTC AT THE CLERICAL LABOR RATE AS DEFINED IN THE CONTRACT THIS WASN'T DONE WELL FROM THE BEGINNING MS VANDER VENNET SAID SAYING THE RTC IS MAINLY RESPONSIBLE FOR WHAT HAPPENED SHE SAID THE CONTRACT BETWEEN THE RTC AND PRICE WATERHOUSE WAS A TWOPAGE DOCUMENT WITH NO LIMITS AND NO TAXPAYER SAFEGUARDS SHE SAID THE RTC INSPECTOR GENERAL'S OFFICE IS LOOKING INTO WHETHER ANY LEGAL VIOLATIONS MAY HAVE OCCURRED HOUSE BANKING COMMITTEE LEADERS IN A LETTER TO MR CASEY SAID THE RTC'S CONTRACT WITH PRICE WATERHOUSE FOR THE ASSET EVALUATION WAS IMPROPERLY AUTHORIZED AND EXECUTED AND HAS MUSHROOMED FROM AN EXPECTED COST OF 4 MILLION TO 17 MILLION AND GROWING THE LETTER FROM COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS REP STEVE NEAL D NC HEAD OF THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND REP FLOYD FLAKE D NY CHAIRMAN OF THE SUBCOMMITTEE ON GENERAL OVERSIGHT SAID THE LAWMAKERS WERE ASTONISHED THAT THE RTC HAD NO INTERNAL CONTROLS OR INADEQUATE ONES AT BEST IN PLACE TO PREVENT SUCH IMPROPER RUNAWAY SPENDING 9302160072 930216 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMIC PLAN TO BE UNVEILED TOMORROW BY CLINTON WOULD CUT DOMESTIC SPENDING LESS THAN FIRST ENVISIONED WHILE RAISING TAXES ON THE WEALTHY MORE THAN INITIALLY PLANNED THE PRESIDENT SAID 70 OF HIS PROPOSED NEW TAXES WOULD COME FROM PEOPLE EARNING MORE THAN 100000 A YEAR THE WHITE HOUSE IS CONSIDERING A SECOND ROUND OF TAX INCREASES LATER THIS YEAR TO PAY FOR UNIVERSAL HEALTH CARE COVERAGE WHICH COULD COST 30 BILLION TO 90 BILLION A YEAR THE LEVIES COULD INCLUDE TAXES ON INSURANCE PREMIUMS AND HEALTH BENEFITS AND ON ALCOHOL TOBACCO GUNS AND POLLUTION THE PRESIDENT ACCUSED THE DRUG INDUSTRY OF SPENDING MORE ON ADVERTISING AND LOBBYING THAN ON DEVELOPING NEW DRUGS HE IS LIKELY TO PRESS THE INDUSTRY TO LIMIT PRICE INCREASES AND MAY PROPOSE GOVERNMENT CONTROLS CORPORATE EARNINGS SOARED 62 IN THE FOURTH QUARTER FROM A YEAR EARLIER ACCORDING TO A WALL STREET JOURNAL SURVEY THE QUARTER WAS BETTER THAN ANALYSTS EXPECTED LEADING MANY TO RAISE THEIR ESTIMATES FOR 1993 PROFITS AND POSSIBLY EASING FEARS THAT STOCK PRICES ARE TOO HIGH BUT STOCKS SANK FRIDAY CAPITAL CITIES/ABC AND TURNER BROADCASTING SYSTEM ARE CONSIDERING MAKING A JOINT BID TO TELEVISE THE 1996 SUMMER OLYMPICS IN ATLANTA ON A TOTAL OF FOUR BROADCAST AND CABLE NETWORKS BOND PRICES RALLIED FRIDAY LOWERING THE BENCHMARK 30YEAR TREASURY BOND'S YIELD TO 712 A SIXYEAR LOW A GROWING NUMBER OF MONEY MANAGERS CONTEND RATES COULD DROP BELOW 7 GENERAL MOTORS SAID IT WILL FIX LEAKY GASKETS ON UP TO 500000 ENGINES THE CAR MAKER ONCE PROMOTED AS A SYMBOL OF ITS ADVANCED TECHNOLOGY THE BID TO BOLSTER GM'S IMAGE AMONG CUSTOMERS REFLECTS A SHIFT IN STRATEGY SALES OF USMADE LIGHT TRUCKS JUMPED 206 IN EARLY FEBRUARY FROM A YEAR EARLIER BUT THE BIG THREE'S SALES OF DOMESTIC CARS DECLINED 53 OPEC OFFICIALS MET IN AN EFFORT TO REACH AN AGREEMENT TO SHORE UP THE PRICE OF OIL BY CUTTING PRODUCTION KUWAIT'S RESISTANCE TO CURBING ITS OUTPUT WAS A MAJOR OBSTACLE TO AN ACCORD PETER AND EDWARD BRONFMAN'S CORPORATE GROUP SOLD ITS STAKE IN CANADIAN BREWER LABATT FOR 7906 MILLION THE TRANSACTION WAS THE GROUP'S SECOND LARGE ASSET SALE IN LESS THAN A WEEK AS PART OF AN EFFORT TO REDUCE DEBT PRODUCER PRICES ROSE 02 LAST MONTH AFTER A 01 INCREASE IN DECEMBER ANALYSTS SAID THE DATA INDICATE INFLATION STILL ISN'T A PROBLEM SEPARATELY A PRIVATE INDEX OF CONSUMER CONFIDENCE MOVED LITTLE THIS MONTH FOODMAKER IS POSTPONING ITS PLANS TO OPEN 85 NEW JACK IN THE BOX RESTAURANTS IN THE WAKE OF AN OUTBREAK OF FOOD POISONING FROM HAMBURGERS SOLD AT SOME OF THE CHAIN'S OUTLETS LIBERTY MEDIA'S PLANNED PURCHASE OF A 75 STAKE IN HOME SHOPPING NETWORK WAS CLEARED BY THE GOVERNMENT BRINGING LIBERTY AND ITS PARTNERS CLOSER TO THE POSSIBLE CREATION OF A SHOPPING AND ENTERTAINMENT GIANT CLINTON OFFICIALS INTEND TO CONCENTRATE ON ADMINISTRATIVE RATHER THAN LEGISLATIVE EFFORTS TO INCREASE BANK LENDING IN THE FACE OF SOME CONGRESSIONAL OPPOSITION TO THE BANKING INDUSTRY'S PLEAS FOR LIGHTER REGULATION AN FCC ADVISORY PANEL RECOMMENDED A NEW ROUND OF TESTING FOR THE FOUR SYSTEMS VYING TO BE THE US STANDARD FOR HIGHDEFINITION TELEVISION BONDS LEHMAN BROTHERS TREASURY INDEX 486515 UP 1398 COMMODITIES OIL 1998 A BARREL OFF 28 CENTS DOW JONES FUTURES INDEX 12452 OFF 098 SPOT INDEX 12439 UNCHANGED DOLLAR 12065 YEN OFF 056 16584 MARKS UP 00006 9302160071 930216 FOREIGN FIRMS IN CHINA SEEK TO HEDGE BETS FEAR OF YUAN'S DEPRECIATION SPURS DEFENSIVE MOVES DEVALUATION IS DENIED BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FACED WITH A DEPRECIATING YUAN AND NO RELIEF IN SIGHT FOREIGN COMPANIES DOING BUSINESS IN CHINA ARE SEEKING WAYS TO PROTECT THEIR PROFITS WHILE ECONOMISTS SAY MOST BUSINESSES SHOULDN'T BE TOO HARD HIT BY THE CHINESE CURRENCY'S GRADUAL DECLINE AND SOME SUCH AS EXPORTERS WHO MAKE PROFITS IN FOREIGN CURRENCY ARE SET TO BENEFIT FOREIGN COMPANIES AREN'T TAKING CHANCES MANY HAVE ALREADY BEGUN TAKING STEPS TO COUNTER THE EFFECT OF A WEAKENING YUAN ALSO KNOWN AS THE RENMINBI OR PEOPLE'S CURRENCY BY RAISING PRICES OF THEIR PRODUCTS HOARDING US DOLLARS OR FINDING NEW USES FOR YUAN THAT THEY EARN IN THE PAST TWO MONTHS THE YUAN HAS FALLEN 8 AGAINST THE US DOLLAR ON CHINA'S OFFICIALLY SANCTIONED SWAP MARKETS WHERE IT CURRENTLY TRADES AT BETWEEN EIGHT YUAN AND 85 YUAN TO 1 WHILE INCREASED IMPORT DEMAND BY CHINA HAS PUT PRESSURE ON THE CURRENCY ECONOMISTS SAY SPECULATION OVER AN OFFICIAL DEVALUATION ALSO HAS HELPED DRIVE THE YUAN LOWER SOME ALSO BELIEVE BEIJING IS ALLOWING THE CURRENCY TO FALL SLOWLY TO BOOST THE COMPETITIVENESS OF ITS EXPORTS LAST THURSDAY THE OFFICIAL EXCHANGE RATE STOOD AT 577 YUAN TO 1 WHILE BLACKMARKET RATES HAVE DROPPED TO AS LOW AS 10 YUAN TO 1 IN SOME PARTS OF CHINA CHINA'S STATE ADMINISTRATION OF EXCHANGE CONTROL SAID LAST THURSDAY THROUGH THE OFFICIAL XINHUA NEWS AGENCY THAT THE RUMORED SHARP DEVALUATION OF THE RENMINBI IS GROUNDLESS CHINA WILL NOT MAKE A DRASTIC READJUSTMENT OF THE EXCHANGE RATE OF RENMINBI IN THE FORESEEABLE FUTURE IT ALSO DENIED RUMORS THAT BEIJING WOULD DEVALUE ITS CURRENCY TO 15 TO 1 ONCE CHINA IS READMITTED TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE EXPECTED LATER THIS YEAR STILL THAT IS LITTLE SOLACE FOR COMPANIES THAT SELL THEIR GOODS TO CHINA AND HAVE NO WAY TO HEDGE AGAINST A SHIFTING YUAN UNDER THE COUNTRY'S CURRENT SYSTEM ONLY FOREIGN EXCHANGE CERTIFICATES FOR USE BY FOREIGN RESIDENTS ARE CONVERTIBLE YUAN IN WHICH CURRENCY MANY FOREIGN COMPANIES ARE PAID ISN'T BUT IT CAN BE TRADED ON THE SWAP MARKETS AT MARKETSET LEVELS I DON'T THINK THE DEVALUING YUAN SHOULD AFFECT COMPANIES THAT HEAVILY ALTHOUGH IT MAY AFFECT EARNINGS IN THE NEAR TERM SAYS ANTHONY CHAN REGIONAL ECONOMIST AT PIERSON SECURITIES ASIA COMPANIES THAT HAVE BEEN WORKING IN CHINA FOR A FEW YEARS SHOULD BE ABLE TO HANDLE THE SITUATION BECAUSE YOU'RE LOOKING AT A CONTINUAL DEPRECIATION OF THE YUAN THROUGH THE 1980S ONE COMPANY FACING DIFFICULTY NOW IS GILLETTE FAR EAST TRADING LTD AND CHINA TRADE A UNIT OF BOSTONBASED GILLETTE CO ITS SALES FOR DECEMBER AND JANUARY FELL 50 YEAR ON YEAR BECAUSE OUR IMPORTERS HAVE TO BEAR THE RISK FOR THE EXCHANGERATE PROBLEM AND THEY'RE BEING CAUTIOUS SAYS CHINA EXPORT MANAGER CONNIE WU FOR GILLETTE'S IMPORTERS IN SHENZHEN ACROSS THE BORDER FROM HONG KONG FOR EXAMPLE IT TAKES ONE WEEK TO DELIVER THE GOODS TO IMPORTERS ANOTHER ONE TO TWO WEEKS FOR THEM TO DELIVER THE GOODS TO NORTHERN CHINA AND 1 1/2 MONTHS BEFORE THEY RECEIVE PAYMENT BY THAT TIME THE EXCHANGE RATE HAS FALLEN 10 AND SO THAT MEANS THEY AREN'T MAKING ANY PROFIT MS WU SAYS THE US COMPANY WHICH SOLD 45 MILLION OF RAZORS PENS ORALCARE PRODUCTS AND OTHER GOODS IN CHINA IN 1992 HAS TAKEN STEPS TO BOOST SALES IN THE SHORT TERM IT HAS REDUCED ITS PRICES TO IMPORTERS BY ABOUT 5 AT THE SAME TIME IT HAS ASKED THEM AND RETAILERS TO RAISE RETAIL PRICES BY 10 IT IS ALSO HELPING EASE IMPORTERS' BURDEN BY HAVING THEM PAY ITS ADVERTISING AND PROMOTION COSTS IN CHINA WITH YUAN AND DEDUCTING THAT FROM THEIR US DOLLAR BILLINGS AT VERY REASONABLE RATES SAYS MS WU GOLDLION FAR EAST LTD A HONG KONGBASED MEN'S RETAIL CHAIN IS ALSO RAISING PRICES OF ITS NEW LINES BY HK5 TO HK10 65 US CENTS TO US130 TO OFFSET THE EFFECTS OF A FALLING YUAN BUT BECAUSE IT ALSO OWNS ITS CHINA DISTRIBUTOR SILVERLION IT FACES AN ADDITIONAL DILEMMA OF WHAT TO DO WITH PROFITS EARNED IN YUAN TOTALING ABOUT HK20 MILLION LAST YEAR BECAUSE OF THE WEAKENING RENMINBI WE CAN'T SEND PROFITS BACK TO HONG KONG NOTHING'S COMING BACK SAYS A SPOKESWOMAN BUT WITH AMPLE HONG KONG DOLLAR FUNDS FROM ITS LISTING ON THE HONG KONG STOCK EXCHANGE LAST SEPTEMBER GOLDLION CAN AFFORD TO TURN ITS YUAN PROFITS INTO ASSETS THAT HAVE VERY HIGH GROWTH POTENTIAL SHE SAYS BESIDES EXPANDING ITS MANUFACTURING PLANT IN MEIZHOU IN GUANGDONG PROVINCE IT IS ALSO VENTURING INTO PROPERTY DEVELOPMENT SUCH AS THE PLANNED CONSTRUCTION OF A HK35 MILLION COMMERCIAL AND RESIDENTIAL COMPLEX IN HARBIN IN NORTHERN CHINA WHILE IMPORTERS TO CHINA SCRAMBLE TO HOLD ON TO THEIR PROFIT MARGIN THOSE INVOLVED IN EXPORT CAN RELAXAT LEAST FOR NOW ONE EXECUTIVE AT A GARMENT MIDDLEMAN FOR US DEPARTMENT STORES SAYS HIS COMPANY EXPECTS TO BENEFIT FROM THE CURRENCY DEVALUATION BECAUSE MOST OF ITS FABRIC AND LABOR COME FROM CHINA BUT HE CAUTIONS I'D BE CONCERNED IF THE YUAN KEPT GOING DOWN BECAUSE IF CHINA BECOMES EVEN CHEAPER THAT WOULD CAUSE THE US TO BE UNABLE TO COMPETE DOMESTICALLY WITH CHINA EVEN MORE THAN NOW THEN IT'S POSSIBLE WE COULD SEE A BACKLASH FROM THE US 9302160070 930216 SPAIN'S ARGENTARIA BANK MAPS STRATEGY CROSSSELLING BY UNITS STOCK OFFERING ARE PLANNED BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL MADRID SCRIBBLING DIAGRAMS ON SHEETS OF WHITE PAPER FRANCISCO LUZON SPELLS OUT HIS PLAN TO MAKE SPAIN'S STATEOWNED ARGENTARIA BANKING GROUP ONE OF THE BLUE CHIPS OF THE SPANISH STOCK EXCHANGE THE KEY LIES IN CROSSSELLING OF PRODUCTS AND SERVICES BY EACH OF OUR BANKS TO CLIENTS OF OTHER BANKS IN THE GROUP THE GRAYHAIRED ARGENTARIA CHAIRMAN SAYS WE HAVE ONLY JUST STARTED THERE IS ENORMOUS POTENTIAL BORN IN 1991 OUT OF THE TRANSFER TO A SINGLE HOLDING COMPANY OF A CLUTCH OF SEPARATE STATEOWNED INSTITUTIONS ARGENTARIA WHOSE OFFICIAL NAME IS CORP BANCARIA DE ESPANA IS SPAIN'S NEWEST BANKING GIANT AT THE END OF 1992 IT HAD TOTAL ASSETS OF 97 TRILLION PESETAS 822 BILLION PUTTING IT NECK AND NECK WITH BANCO BILBAO VIZCAYA AND BANCO CENTRAL HISPANOAMERICANO FOR MUCH OF LAST YEAR ARGENTARIA WAS A CONUNDRUM TO ANALYSTS PUZZLED BY THE REGROUPING OF WHAT SEEMED LIKE A SERIES OF BUREAUCRACIES IN RECENT MONTHS HOWEVER IT HAS EMERGED AS A WORRISOME NEW RIVAL FOR OTHER BANKS IN SPAIN LOGICALLY ARGENTARIA MEANS MORE COMPETITION FOR OTHER SPANISH BANKS SAYS JOSE SEVILLA AN ANALYST AT FG INVERSIONES BURSATILES IT HAS A GOOD STORY TO TELL IN TERMS OF FUTURE PROFITS GROWTH AND ITS LINKS WITH THE STATE COULD PROVIDE USEFUL BUSINESS OPPORTUNITIES FOR THE MOMENT ARGENTARIA IS STILL 100OWNED BY THE SPANISH STATE BUT IN AN OPERATION EXPECTED TO RAISE WELL OVER 1 BILLION FORESEEABLY SPAIN'S BIGGEST SHARE FLOTATION EVER IT PLANS SOON TO SELL UP TO 25 OF ITS CAPITAL THE MOVE WILL MARK A MILESTONE IN THE DEREGULATION OF SPAIN'S FINANCIAL SYSTEM A PROCESS THAT STARTED IN THE EARLY 1980S IT WILL ALSO BE A FURTHER STEP IN A PROCESS OF CONSOLIDATION THAT HAS ALREADY LED TO TWO MERGERS BETWEEN BIG SPANISH BANKS THOUGH MR LUZON DENIES AMBITIONS FOR ARGENTARIA IN THAT DIRECTION HE SAYS HE EXPECTS FURTHER MERGERS TO TAKE PLACE ARGENTARIA WITH ONE OF THE STRONGEST CAPITAL BASES AMONG SPANISH BANKS LOOKS SET TO BE A KEY PLAYER IN THE PROCESS FOR THE MOMENT NO TIMETABLE HAS BEEN SET FOR ARGENTARIA'S FLOTATION ADVISED BY MORGAN STANLEY HOWEVER ARGENTARIA HAS STARTED PREPARATIONS EARLIER THIS MONTH THE SPANISH GOVERNMENT GAVE THE GREEN LIGHT FOR IT TO PROCEED AS FAST AS POSSIBLE ANALYSTS EXPECT THE SALE TO BE LAUNCHED IN MAY OR JUNE AND ATTRACTIVE PRICING IS ANTICIPATED THIS IS LIKELY TO BE THE FIRST OF SEVERAL FLOTATIONS OF ARGENTARIA SHARES SAYS MR SEVILLA LOGICALLY THE FIRST WILL HAVE TO BE A SUCCESS MR LUZON HAS SPENT MOST OF THE PAST FOUR YEARS PREPARING FOR THIS EVENT SITTING IN HIS OFFICE AT ARGENTARIA'S HEADQUARTERS A STONE'S THROW FROM SPAIN'S PARLIAMENT IN CENTRAL MADRID THE PUGNACIOUS 45YEAROLD CAREER BANKER DETAILS THE PROCESS THAT LED TO ARGENTARIA'S CREATION AROUND HIM THE ROOM'S PINEPANELED WALLS ARE DECORATED WITH OLD MASTER PAINTINGS ON HIS SKETCH PAD SQUARES AND RECTANGLES REPRESENT THE GROUP'S MAIN UNITS IN THE 1970S MR LUZON WAS A CLOSE ASSOCIATE OF CARLOS SOLCHAGA NOW SPAIN'S ECONOMY MINISTER WHEN THEY BOTH WORKED AT WHAT WAS THEN BANCO DE VIZCAYA IN 1988 MR SOLCHAGA APPOINTED MR LUZON TO RUN BANCO EXTERIOR DE ESPANA A STATECONTROLLED EXPORTCREDIT BANK IN THE PERIOD THAT FOLLOWED THE TWO MEN DEBATED HOW TO RATIONALIZE NOT ONLY BANCO EXTERIOR BUT THE ENTIRE STATE BANKING SECTOR RATHER THAN MERGING VARIOUS STATEOWNED BANKS THAT WERE A HERITAGE OF SPAIN'S FORMER DICTATORSHIP WITH ALL THE TRAUMA THAT WOULD ENTAIL IN TERMS OF BRINGING TOGETHER DIFFERING CULTURES AND SYSTEMS THEY FINALLY DECIDED IN FAVOR OF WHAT MR LUZON CALLS A FEDERATED BANKING GROUP THE CONCEPT'S ESSENCE IS THAT EACH UNIT RETAINS ITS INDIVIDUALITY WHILE OPERATING IN CONSONANCE WITH THE OTHERS UNDER A CENTRAL MANAGEMENT TEAM ITS RESULT MR LUZON CLAIMS HAS BEEN SIGNIFICANT ECONOMIES AND NEW SYNERGIES IN ADDITION TO BANCO EXTERIOR WHICH MR LUZON HAS STREAMLINED INTO ONE OF THE BEST PERFORMERS IN SPANISH BANKING ARGENTARIA'S MAIN SUBSIDIARIES INCLUDE CAJA POSTAL THE STATEOWNED POSTAL SAVINGS BANK BANCO HIPOTECARIO DE ESPANA SPAIN'S LEADING MORTGAGE LENDER BANCO DE CREDITO LOCAL THE LEADER IN LOCAL AUTHORITY FINANCE AND BANCO DE CREDITO AGRICOLA A SPECIALIST IN AGRIBUSINESS LENDING DRAWING ARROWS AND LINES BETWEEN THE BLOCKS ON HIS PAD MR LUZON EXPLAINS THE ADVANTAGES OF BRINGING THEM TOGETHER FROM SEVEN DIFFERENT COMPUTER SYSTEMS THE GROUP HAS CUT ITS INFORMATION TECHNOLOGY BASE TO TWO SYSTEMS HE SAYS THAT HAS SAVED 5 BILLION PESETAS IN INVESTMENT COSTS OR 25 OF THE OUTLAYS OTHERWISE NEEDED PLUS 2 BILLION PESETAS IN ANNUAL OPERATING COSTS RATIONALIZATION OF OFFICE USAGE HAS FREED NEARLY 20 OF THE GROUP'S OFFICE SPACE ENABLING IT TO SELL BUILDINGS AND REAP CAPITAL GAINS OF 12 BILLION PESETAS JOINT BARGAINING WITH SUPPLIERS FROM THE STATECONTROLLED TELEPHONE COMPANY TO THE POSTAL SYSTEM HAS PRODUCED ANNUAL SAVINGS OF A FURTHER 1 BILLION PESETAS ON THE BUSINESS FRONT ARGENTARIA UNITS ARE CROSSSELLING ONE ANOTHER'S PRODUCTS HIPOTECARIO IS INVITING MORTGAGE BORROWERS TO MOVE THEIR BANK ACCOUNTS TO CAJA POSTAL LAST YEAR OUT OF 40000 HOME BUYERS 25000 RESPONDED POSITIVELY AND IS SELLING THE SAVINGS BANK'S POSTAL VIDA LIFEINSURANCE POLICIES SOME 17000 LAST YEAR CAJA POSTAL IS OFFERING FACILITIES TO HIPOTECARIO IN THE FORM OF MORTGAGEADVICE DESKS IN 110 OF ITS 650 OFFICES BCL IS ASKING LOCAL AUTHORITIES WHO BORROW FROM IT TO DO THEIR BANKING WITH BANCO EXTERIOR BUT ARGENTARIA LACKS A SOLID RETAIL CLIENT BASE AND IT STILL IS STUFFY AND BUREAUCRATIC ITS RIVALS CLAIM AND ITS LINKS WITH THE STATE DESPITE MR LUZON'S CLAIM THAT HE IS RUNNING ARGENTARIA WITHOUT GOVERNMENT INTERFERENCE ARE A CONTROVERSIAL ISSUE THEY'RE STILL A STATEOWNED BANK AND YOU CAN NEVER BE SURE WHAT SURPRISE THEY'LL SPRING ON YOU NEXT SAYS THE CHAIRMAN OF ANOTHER MAJOR BANK TO UNDERLINE THE POINT HE CITES THE RECENT TRANSFER OF 403 BILLION PESETAS OF GOVERNMENTBACKED CREDITS FROM BANCO EXTERIOR'S BOOKS TO THOSE OF SPAIN'S INSTITUTO DE CREDITO OFICIAL THE LOANS RANGING FROM STATEFINANCED DISASTER RELIEF TO INDUSTRIAL DEVELOPMENT FINANCE WERE ALL OF A POLITICAL NATURE AND THREATENED TO BECOME A FINANCIAL BURDEN TO ARGENTARIA THEIR TRANSFER TO ICO HELPED CLEAN UP ARGENTARIA'S BALANCE SHEET GIVING IT A FILLIP MANY PRIVATE BANKS WOULD HAVE BEEN GLAD TO RECEIVE MR LUZON INSISTS THAT ARGENTARIA'S PRIVILEGED LINKS WITH THE STATE ARE A THING OF THE PAST THOUGH ITS SPECIALIZED CREDIT SUBSIDIARIES UNTIL RECENTLY DID ENJOY LESS ONEROUS OBLIGATORY RESERVE REQUIREMENTS THAN SPANISH COMMERCIAL BANKS HE SAYS THOSE PRIVILEGES HAVE BEEN ABOLISHED HENCEFORTH HE SAYS ARGENTARIA WILL BE COMPETING WITH OTHER BANKS ON AN EQUAL FOOTING ACTING EXCLUSIVELY ACCORDING TO COMMERCIAL CRITERIA CATCHING UP WIH RIVALS AS A GROUP ARGENTARIA STILL LAGS BEHIND ITS MAIN RIVALS IN PROFITABILITY BUT IT'S CATCHING UP IN 1991 ARGENTARIA EARNED A RETURN ON ASSETS OF 086 AGAINST AN AVERAGE OF 13 FOR SPANISH BANKS IN GENERAL LAST YEAR ITS RETURN ON ASSETS ROSE TO 101 WHILE THE AVERAGE FOR THE SPANISH BANKING SYSTEM SHRANK TO 11 FIGURES FOR RETURN ON EQUITY SHOW A SIMILAR TREND 118 FOR ARGENTARIA IN 1991 AGAINST 166 FOR SPANISH BANKS AS A WHOLE 128 FOR ARGENTARIA IN 1992 AGAINST 130 FOR ALL SPANISH BANKS LOOKING AHEAD MR LUZON SAYS ARGENTARIA HAS ROOM FOR STAFFING CUTS OF AROUND 800 A YEAR OVER THE NEXT THREE YEARS HE INTENDS TO ESCHEW COSTLY NETWORK EXPANSION PLANS CONCENTRATING INSTEAD ON AN AGREEMENT WITH THE STATE POST OFFICE TO SELL CAJA POSTAL PRODUCTS THROUGH 1100 POSTOFFICE OUTLETS 9302160069 930216 BUSINESS BRIEF ELAN CORP FEDERAL COURT DISMISSES SUIT BY PFIZER OVER HEART DRUG ELAN CORP ATHLONE IRELAND SAID A FEDERAL COURT IN DELAWARE DISMISSED PFIZER INC'S PATENTINFRINGEMENT SUIT AGAINST IT OVER ELAN'S COMPETING VERSION OF PFIZER'S PROCARDIA XL HEART DRUG PFIZER SUED ELAN LAST JULY ALLEGING THAT ELAN HAD INFRINGED ON PFIZER PATENTS IN SEEKING FOOD AND DRUG ADMINISTRATION APPROVAL FOR NIFELAN ELAN'S SUSTAINEDRELEASE FORM OF NIFEDIPINE FOR HYPERTENSION AND ANGINA PROCARDIA XL IS PFIZER'S BRAND OF NIFEDIPINE ELAN COUNTERED THAT THE SUIT WAS AN ATTEMPT TO FRUSTRATE THE US APPROVAL PROCESS THE SUIT WAS DISMISSED IN US DISTRICT COURT IN DELAWARE ELAN SAID ELAN SAID THE COURT DISMISSED PFIZER'S CLAIMS IN THEIR ENTIRETY RULING THAT PFIZER HAD NO RIGHT TO BRING THE SUIT A PFIZER SPOKESMAN SAID PFIZER WAS REVIEWING THE DECISION 9302160068 930216 BUSINESS BRIEF PINAULT SA DEPARTMENT STORE OWNER SAYS '92 REVENUE DECLINED PINAULT SA A PARISBASED HOLDING COMPANY THAT CONTROLS THE AU PRINTEMPS DEPARTMENT STORE CHAIN AND OTHER RETAIL OUTLETS SAID 1992 CONSOLIDATED REVENUE FELL 02 TO 7069 BILLION FRANCS 1261 BILLION FROM 7083 BILLION FRANCS IN 1991 THE YEAREARLIER FIGURE WAS RESTATED TO REFLECT ACQUISITIONS AND DIVESTITURES BY PINAULT IN THE COURSE OF 1992 9302160067 930216 BUSINESS BRIEF AUTOTROL CORP EMBEZZLEMENT IS DISCOVERED AT COMPANY'S FRENCH UNIT AUTOTROL CORP SAID IT DISCOVERED A 3 MILLION EMBEZZLEMENT BY THE FORMER CONTROLLER OF ITS FRENCH SUBSIDIARY AUTOTROL SA AS A RESULT OF THIS EVENT AND CHARGES RELATED TO THE SALE OF THE ASSETS OF ITS AQUATROL UNIT IN NOVEMBER AND OTHER MATTERS AUTOTROL SAID IT EXPECTS TO REPORT A SUBSTANTIAL LOSS FOR THE FOURTH QUARTER IN THE YEAREARLIER FOURTH QUARTER AUTOTROL HAD A LOSS OF 12 MILLION OR 42 CENTS A SHARE AFTER A 2 MILLION LOSS FROM DISCONTINUED OPERATIONS THE MILWAUKEEBASED MAKER OF WATER TREATMENT EQUIPMENT SAID IT AND ITS ADVISERS CONTINUE TO INVESTIGATE THE EMBEZZLEMENT AT THE FRENCH UNIT WHICH IS BELIEVED TO HAVE BEGUN IN 1988 AUTOTROL IS PURSUING RECOVERY OF THE MONEY THROUGH INSURANCE AND OTHER MEASURES AUTOTROL AGREED IN DECEMBER TO BE ACQUIRED BY OSMONICS INC THE TWO COMPANIES ARE CONTINUING THEIR DUE DILIGENCE RELATING TO THE TRANSACTION AND NEGOTIATIONS TOWARD A DEFINITIVE AGREEMENT 9302160066 930216 BUSINESS BRIEF NISSIN FOOD PRODUCTS CO FOOD MAKER CUTS FORECASTS FOR FISCAL '93 PROFIT SALES NISSIN FOOD PRODUCTS CO TOKYO LOWERED ITS FORECASTS FRIDAY FOR CONSOLIDATED EARNINGS AND SALES IN THE FISCAL YEAR ENDING MARCH 31 THE FOOD MAKER NOW EXPECTS CONSOLIDATED PRETAX PROFIT OF 175 BILLION YEN 1444 MILLION DOWN 54 FROM 185 BILLION YEN PREDICTED LAST JUNE AND DOWN 08 FROM PRETAX PROFIT OF 1765 BILLION YEN IN ITS LAST FISCAL YEAR A NISSIN OFFICIAL CITED THE ECONOMY'S WEAKNESS AS THE MAIN REASON FOR THE DOWNWARD REVISION NET INCOME IS NOW EXPECTED TO BE 4 BILLION YEN DOWN 50 FROM THE 8 BILLION YEN PREVIOUSLY FORECAST AND 57 LOWER THAN THE 939 BILLION YEN POSTED IN ITS LAST FISCAL YEAR THE SHARP FALL IN NET WAS BLAMED ON LOSSES AT NISSIN'S FINANCE UNIT AS A RESULT OF THE SLUMP IN THE STOCK MARKET AS WELL AS ON THE COMPANY'S GOODWILL OUTLAYS RELATED TO THE ACQUISITION OF TWO FIRMS IN JAPAN NISSIN EXPECTS GROUP SALES OF 250 BILLION YEN DOWN 38 FROM THE JUNE FORECAST OF 260 BILLION YEN BUT STILL UP 87 FROM 22997 BILLION YEN POSTED A YEAR EARLIER 9302160065 930216 INTERNATIONAL AS ISRAELI OFFICIALS SOUND OFF ON PEACE WITH SYRIA SOME DON'T HEAR IT THAT WAY BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV AFTER MEETING LAST WEEK WITH THREE REPUBLICAN SENATORS WHO HAD JUST VISITED SYRIA THE ISRAELI FOREIGN MINISTRY ISSUED A STATEMENT SAYING THE US OFFICIALS FOUND SYRIA READY TO PROCEED TO A PEACE AGREEMENT WITH ISRAEL BUT WHEN A REPORTER FROM AN ISRAELI NEWSPAPER SPOKE WITH ONE OF THE SENATORS HIMSELF HE WAS TOLD THAT THE TWOHOUR SESSION WITH SYRIAN FOREIGN MINISTER FAROUK SHARA HAD BEEN A DISAPPOINTMENT WE ASKED SHARA IF SYRIA WOULD AGREE TO A COMPLETE PEACE WITH ISRAEL AFTER RECEIVING THE GOLAN SENATOR HANK BROWN R COLO TOLD THE JERUSALEM POST BUT ALL HE WOULD SAY IS THAT SYRIA MUST GET BACK ALL THE TERRITORY AND THEN WE'LL SEE SINCE THE LAST ROUND OF PEACE TALKS ENDED IN WASHINGTON THE ISRAELI GOVERNMENT HAS BEEN SOUNDING INCREASINGLY OPTIMISTIC ABOUT THE CHANCES OF REACHING AN AGREEMENT WITH SYRIA MOSHE SHAHAL MINISTER OF POLICE HAS SAID SEVERAL TIMES THAT A PEACE AGREEMENT COULD BE SIGNED BY THE END OF THIS YEAR HEALTH MINISTER HAIM RIMON SAID IN THE KNESSET OR PARLIAMENT THAT DRAMATIC ADVANCES HAD BEEN MADE WITH THE SYRIANS ITAMAR RABINOVICH THE HEAD OF THE ISRAELI DELEGATION TO THE PEACE TALKS WITH SYRIA AND ISRAEL'S NEW AMBASSADOR TO THE US SAID HE EXPECTS A BREAKTHROUGH IN THE NEGOTIATIONS AS EARLY AS APRIL EVEN THE NORMALLY LOWKEY PRIME MINISTER YITZHAK RABIN HAS BEEN CAUGHT USING SIMILAR LANGUAGE WHEN SPEAKING ABOUT THE SYRIANS LATELY HOWEVER ISRAELI POLITICAL ANALYSTS HAVE BEGUN QUESTIONING THE GROUNDS FOR THE RABIN GOVERNMENT'S OPTIMISM ARGUING THAT A WIDE GAP APPEARS TO EXIST BETWEEN THE ISRAELIS' PUBLIC DECLARATIONS AND A REALITY THAT APPEARS FAR MORE AMBIGUOUS MOREOVER THESE ANALYSTS SAY THAT RAISING THE PUBLIC'S EXPECTATIONS ABOUT AN IMMINENT DEAL WITH THE SYRIANS CAN ONLY BACKFIRE IF MR RABIN IS UNABLE TO MEET THE TIMETABLE HE HAS PUBLICLY SET I'M AFRAID THE ISRAELI PUBLIC IS GOING TO BE DISAPPOINTED SAYS EPHRAIM SNEH A KNESSET MEMBER WHO SITS ON THE FOREIGN AFFAIRS AND DEFENSE COMMITTEE THERE IS A DISCREPANCY BETWEEN WHAT PEOPLE ARE EXPECTING AND THE KINDS OF ACHIEVEMENTS THAT ARE FEASIBLE THIS YEAR POLITICAL COMMENTATOR UZI BENZIMIN WRITING IN THE ISRAELI DAILY HA'ARETZ ATTRIBUTES THE RABIN GOVERNMENT'S DRAMATIC DECLARATIONS ABOUT THE SYRIANS TO RECOGNITION THAT THEY HAVEN'T BEEN ABLE TO DELIVER ON THEIR TWO MAIN PROMISES FROM LAST JUNE'S ELECTION CAMPAIGN LOWERING UNEMPLOYMENT WHICH IS STUCK ABOVE 11 AND SIGNING AN AGREEMENT OVER PALESTINIAN SELFRULE IN THE WEST BANK AND THE GAZA STRIP WITHIN SIX TO NINE MONTHS OF TAKING OFFICE RABIN WROTE MR BENZIMIN KNOWS VERY WELL THAT AN AGREEMENT WITH SYRIA IS THE SOLE SUCCESSFUL CARD HE IS CAPABLE OF WAVING IN FRONT OF THE PUBLIC IN THE COMING MONTHS NOT SURPRISINGLY THE ISRAELI OPPOSITION CLAIMS THE RABIN GOVERNMENT'S CHEERLEADING IS AN ATTEMPT TO OBSCURE THE FACT THAT SYRIA'S BASIC POSITIONS TOWARD ISRAEL REMAIN UNCHANGED ZE'EV B BEGIN A CANDIDATE FOR THE LEADERSHIP OF THE LIKUD PARTY POINTS OUT THAT THE GOVERNMENT HAS DELAYED PUBLISHING A SYRIAN POSITION PAPER GIVEN TO THE ISRAELI DELEGATION DURING THE LAST ROUND OF PEACE TALKS THAT DELAY HE SAYS IS BECAUSE THE DOCUMENT SHOWS THAT SYRIA SEEKS A NONBELLIGERENCY DECLARATION RATHER THAN A PEACE TREATY AND IS UNWILLING TO MAKE A SEPARATE AGREEMENT WITH ISRAEL UNLESS THE PALESTINIAN ISSUE IS ALSO RESOLVED GAD BENARI MR RABIN'S MEDIA ADVISER SAYS THERE'S NO NEED TO PUBLICIZE THE SYRIAN DOCUMENT SINCE THE NEGOTIATIONS ARE CONTINUING AND POSITIONS ON BOTH SIDES ARE EVOLVING DESPITE THE FACT THAT SERIOUS OBSTACLES REMAIN HE ARGUES THE SYRIANS HAVE MADE A FUNDAMENTAL POLICY SHIFT BY JOINING THE PEACE TALKS AND EXPRESSING WILLINGNESS TO SECURE THE RETURN OF THE GOLAN HEIGHTS CAPTURED BY THE ISRAELIS DURING THE 1967 WAR THROUGH NEGOTIATIONS RATHER THAN MILITARY CONFRONTATION THEIR PUBLIC AND PRIVATE RHETORIC HAS CHANGED SAYS MR BENARI THE SYRIANS ARE SAYING THINGS AROUND THE NEGOTIATING TABLE WHICH LEAD US TO BELIEVE THAT A SIGNIFICANT BREAKTHROUGH IS WITHIN REACH IN A RECENT COLUMN FOR HA'ARETZ YOEL MARCUS A POLITICAL COMMENTATOR WHO HAS FOLLOWED THE NEGOTIATIONS CLOSELY CAUTIONED THE GOVERNMENT ABOUT RELYING TOO HEAVILY ON WHAT HE CALLED SYRIAN PRESIDENT HAFIZ ALASAD'S BODY LANGUAGE HE STILL WANTS FULL CONTROL OF THE GOLAN INCLUDING ITS WATER SOURCES HE WANTS RECOGNITION OF HIS POWER IN LEBANON AND HE'S NOT WILLING TO GIVE UP SPONSORING TERROR ORGANIZATIONS MR MARCUS SAID IN AN INTERVIEW THERE'S STILL A LONG WAY TO GO IN HIS SPEECHES DURING THE ELECTION CAMPAIGN MR RABIN FOCUSED HIS ATTENTIONS ALMOST EXCLUSIVELY ON THE CHANCES FOR PEACE WITH THE PALESTINIANS HIS SHIFT TO THE SYRIAN TRACK REFLECTS IN PART HIS GROWING DOUBTS ABOUT THE ABILITY OF PALESTINIAN LEADERS TO REACH AN AGREEMENT QUICKLY AND A FEELING THAT ANY ADVANCE WITH SYRIA IS SURE TO ALSO PUSH THE PALESTINIANS FORWARD OUT OF FEAR OF BEING LEFT OUT OF ANY DEAL MR MARCUS FROM HA'ARETZ CONTENDS THAT MR RABIN ALSO BELIEVES THAT SINCE THE SYRIANS AREN'T YET READY FOR THE FULL NORMALIZATION OF RELATIONS WITH ISRAEL AND THE ISRAELIS AREN'T READY FOR A FULL WITHDRAWAL FROM THE GOLAN IT MAY BE POSSIBLE TO WORK OUT SOME SORT OF INTERIM ARRANGEMENT KNESSET MEMBER MR SNEH WHO BELONGS TO MR RABIN'S LABOR PARTY NONETHELESS CONTENDS THAT THE SYRIANS HAVE SO FAR REJECTED SUCH AN OPTION IT'S FEASIBLE THAT THEY MAY BE WILLING TO SIGN SOME SORT OF MUTUAL DECLARATION OF PRINCIPLES SAYS MR SNEH BUT SUCH A DOCUMENT IS UNLIKELY TO GO BEYOND GENERAL STATEMENTS OPPOSING WAR AND FAVORING NEGOTIATIONS AS A WAY OF RESOLVING DISPUTES SYRIA WANTS ALL OF THE GOLAN HEIGHTS AND NO INTERIM ARRANGEMENTS IN EXCHANGE FOR A PEACE WHOSE CHARACTERISTICS IT IS STILL UNWILLING TO DISCUSS SAYS MR SNEH IF SOMEONE IN MY PARTY HAS REASON TO BELIEVE WHY THIS IS SUCH A ROSY PICTURE I WISH THEY WOULD GIVE ME A CALL 9302160064 930216 AS BLYTH CONTINUES TRANSFORMATION TO SOFTWARE FIRM INVESTORS TAKE NOTICE BY LAURIE DELATER WEEKS SPECIAL TO THE WALL STREET JOURNAL NEW YORK ONCE A BIT PLAYER IN DESKTOP DATABASES BLYTH HOLDINGS INC HAS RESHAPED ITSELF INTO A SOFTWARE DEVELOPER FOR CLIENTSERVER COMPUTING BLYTH HAS DONE A SURPRISING JOB OF REMAKING ITSELF SAID SOUNDVIEW FINANCIAL ANALYST CHARLES PHILLIPS BLYTH HAS SEEN ITS REVENUE RISE 71 TO 83 MILLION IN THE NINE MONTHS ENDED DEC 31 BUT AFTER ACHIEVING THREE QUARTERS OF SLIGHT PROFITABILITY BLYTH POSTED A NET LOSS OF 260914 OR SIX CENTS A SHARE FOR ITS FISCAL THIRD QUARTER NET INCOME FOR THE NINE MONTHS TOTALED JUST 22248 MICHAEL J MINOR CHIEF EXECUTIVE OFFICER AND PRESIDENT SAID IN AN INTERVIEW THAT IT IS IMPORTANT BLYTH BE CLOSE TO BREAKEVEN OR PROFITABLE TO WIN CUSTOMERS BUT THE COMPANY STILL IS IN A DEVELOPMENT PHASE AND ITS TARGET MARKET IS STILL IMMATURE BLYTH A HOLDING COMPANY FOR A SOFTWARE CONCERN IN ENGLAND AND BLYTH SOFTWARE BASED IN FOSTER CITY CALIF IS SMALLER AND LESS WELLKNOWN THAN TWO OF ITS COMPETITORS POWERSOFT CORP AND GUPTA CORP WHOSE INITIAL PUBLIC OFFERING OF STOCK MET STRONG DEMAND LAST WEEK BUT BLYTH'S TRANSFORMATION HASN'T GONE UNNOTICED BY INVESTORS AFTER TRADING BELOW 4 A SHARE ON THE NATIONAL OVERTHECOUNTER MARKET FOR AT LEAST TWO AND A HALF YEARS BLYTH'S SHARE PRICE BEGAN RISING IN SEPTEMBER AND REACHED A HIGH OF 23 ON FEB 4 THE POOR TIMING OF BLYTH'S OWN INITIAL OFFERING PROVED OMINOUS THE COMPANY WENT PUBLIC JUST DAYS BEFORE THE STOCK MARKET CRASHED IN OCTOBER 1987 FOR THE NEXT FOUR YEARS BLYTH STRUGGLED TO THRIVE IN THE CROWDED PERSONAL COMPUTER DATABASE MARKET AGAINST BIGGER MORE ESTABLISHED COMPETITORS A BREAN MURRAY WHOSE SECURITIES FIRM BREAN MURRAY FOSTER UNDERWROTE BLYTH'S INITIAL OFFERING RECRUITED RICHARD J HANSCHEN A PRIVATE INVESTOR IN TECHNOLOGY COMPANIES TO HELP TURN AROUND BLYTH MR HANSCHEN WHO BECAME CHAIRMAN OF BLYTH'S BOARD LAST SEPTEMBER SAID HE WAS THE LEAD INVESTOR IN BLYTH'S EARLY 1992 3 MILLION EQUITY PRIVATE PLACEMENT WHICH ALSO INVOLVED STEPHENS INC A LITTLE ROCK ARK INVESTMENT FIRM MR HANSCHEN IN TURN HELP RECRUIT MR MINOR WHO HAD REALIZED THE OPPORTUNITY IN THE BUDDING CLIENTSERVER COMPUTING MARKET AS A FORMER SENIOR MANAGER OF STRATEGIC PLANNING FOR APPLE COMPUTER INC CLIENTSERVER DESCRIBES A NEW WAY OF COMPUTING THAT ALLOWS CORPORATIONS TO USE THEIR MAINFRAMES AND NETWORKS OF DESKTOP COMPUTERS TOGETHER TO IMPROVE OPERATIONS AND SAVE MONEY BUT CLIENTSERVER REQUIRES A NEW BREED OF BUSINESS SOFTWARE BECAUSE THE PROCESSING IS DIVIDED BETWEEN CLIENTS OR THE DESKTOP COMPUTERS AND SERVERS WHICH CAN BE DATABASES OR OTHER COMPUTING RESOURCES THAT IN TURN SENT PROGRAMMERS LOOKING FOR HELP WHEN MR MINOR JOINED BLYTH IN JULY 1991 THE COMPANY'S FLAGSHIP PRODUCT OMNIS VERSION 5 A RELATIONAL DATABASE AND APPLICATION DEVELOPMENT FOR SMALL WORKGROUPS WAS ON ITS LAST LEGS HE SAID BUT SIX MONTHS LATER BLYTH ROLLED OUT OMNIS 7 AN UPDATE TO ITS EARLIER PRODUCT REWRITTEN IN A NEW PROGRAMMING LANGUAGE AS WELL AS OMNIS 7 PLUS WHICH ALSO SPORTED NEW FEATURES SUCH AS THE ABILITY TO ACCESS INDUSTRY STANDARD SQL RELATIONAL DATABASES ACROSS A NETWORK AND WHICH WAS AIMED AT CLIENTSERVER DEVELOPERS BUT WHILE BLYTH HAS EARLY CONVERTS AMONG THE MOST SOPHISTICATED CUSTOMERS IT HAS TAPPED ONLY A FRACTION OF THE STILL BUDDING CLIENTSERVER APPLICATION DEVELOPMENT MARKET MR MINOR ACKNOWLEDGED IN FACT HE DESCRIBED CLIENTSERVER DEVELOPMENT TOOLS AS THEY EXIST TODAY AS CRUDE 9302160063 930216 TECHNOLOGY BRIEF CENTURY TELEPHONE ENTERPRISES INC CELUTEL INC AGREES TO SELL INTERESTS IN 2 CELLULAR SYSTEMS CENTURY TELEPHONE ENTERPRISES INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CELUTEL INC'S CONTROLLING INTEREST IN TWO MISSISSIPPI GULF COAST CELLULAR SYSTEMS FOR 36 MILLION IN CASH AND STOCK THE MONROE LA TELECOMMUNICATIONS CONCERN SAID IT WOULD ACQUIRE 808 OF THE BILOXIGULFPORT SYSTEM AND 826 OF THE PASCAGOULA CELLULAR NETWORK SUBJECT TO REGULATORY APPROVAL CENTURY SAID IT WOULD PAY CELUTEL AN ANNAPOLIS MD CELLULAR CONCERN APPROXIMATELY 40 OR 144 MILLION IN CASH AND THE REMAINDER IN NEW SHARES OF CENTURY COMMON STOCK CELUTEL WHICH WILL HAVE REMAINING OPERATIONS IN MISSISSIPPI AND SOUTH TEXAS SAID THE TRANSACTION WOULD MAKE IT ALMOST DEBTFREE IN NEW YORK STOCK EXCHANGE TRADING FRIDAY CENTURY CLOSED AT 29375 DOWN 125 CENTS ON THE AMERICAN STOCK EXCHANGE CELUTEL CLOSED AT 4625 UP 125 9302160062 930216 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ARGOSY GAMING CO INITIAL FIVE MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP ATHENA NEUROSCIENCES INC THREE MILLION COMMON SHARES VIA PAINEWEBBER INC BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUSTINITIAL SIX MILLION COMMON SHARES VIA MERRILL LYNCH & CO CARDIOVASCULAR IMAGING SYSTEMS INC TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES CHIPSOFT INC 34 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO FIRST USA INC FOUR MILLION COMMON SHARES VIA MERRILL LYNCH HYPERION 2005 INVESTMENT GRADE OPPORTUNITY TERM TRUST INC INITIAL SIX MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO IES INDUSTRIES INC TWO MILLION COMMON SHARES VIA MORGAN STANLEY & CO INTEGRATED CIRCUIT SYSTEMS INC TWO MILLION COMMON SHARES VIA ALEX BROWN & SONS INC INTERNEURON PHARMACEUTICALS INC THREE MILLION COMMON SHARES VIA MONTGOMERY NEUREX CORP INITIAL THREE MILLION CLASS A COMMON SHARES VIA LEHMAN BROTHERS INC NUVEEN PREMIUM INCOME MUNICIPAL FUND 4 INC INITIAL 10 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC OCLASSEN PHARMACEUTICALS INC INITIAL THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS PROFFITT'S INC 2250000 COMMON SHARES VIA FIRST BOSTON CORP SERAGEN INC 25 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO SUPERMAC TECHNOLOGY INC ONE MILLION COMMON SHARES VIA MONTGOMERY VIAGENE INC INITIAL 25 MILLION COMMON SHARES VIA FIRST BOSTON VICAL INC INITIAL THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC VOYAGEUR ARIZONA MUNICIPAL INCOME FUND INC INITIAL 15 MILLION COMMON SHARES VIA PAINEWEBBER VOYAGEUR FLORIDA MUNICIPAL INCOME FUND INC INITIAL 15 MILLION COMMON SHARES VIA PAINEWEBBER VOYAGEUR MINNESOTA MUNICIPAL INCOME FUND II INC INITIAL 15 MILLION COMMON SHARES VIA PAINEWEBBER VOYAGEUR MISSOURI MUNICIPAL INCOME FUND INC INITIAL 15 MILLION COMMON SHARES VIA PAINEWEBBER DETROIT EDISON CO 100 MILLION OF CUMULATIVE PERPETUAL DEPOSITORY PREFERRED STOCK VIA MORGAN STANLEY PROVIDENT LIFE & ACCIDENT INSURANCE CO 150 MILLION OF CUMULATIVE PREFERRED STOCK VIA MERRILL LYNCH SALOMON INC 200 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK VIA SALOMON BROTHERS INC EL PASO COUNTY TEXAS 5085 MILLION OF ITS GENERAL OBLIGATION UTILITY BONDS JAIL AND REFUNDING FINANCING VIA A MERRILL LYNCH CAPITAL MARKETS GROUP INDIANAPOLIS PUBLIC IMPROVEMENT BOND BANK INDIANA 225 MILLION OF ITS SERIES 1993 A BONDS VIA A MERRILL LYNCH GROUP HARRISBURG PENNSYLVANIA 68 MILLION OF ITS WATER DEVELOPMENT BONDS VIA A PRUDENTIAL SECURITIES GROUP NEW YORK STATE MEDICAL CARE FACILITY 170 MILLION OF ITS GENERAL REVENUE MENTAL HEALTH CARE BONDS VIA A DONALDSON LUFKIN & JENRETTE GROUP THE BONDS WILL BE INSURED BY AMBAC INDEMNITY CORP UNIVERSITY OF MARYLAND SYSTEM 7027 MILLION OF ITS AUXILIARY FACILITIES AND TUITION REVENUE BONDS VIA COMPETITIVE BID DETROIT 280 MILLION OF ITS SEWERAGE DESP SYSTEM REVENUE AND REFUNDING BONDS VIA A GOLDMAN SACHS GROUP GAINESVILLE FLORIDA 150 MILLION OF ITS REGULATORY UTILITIES REFUNDING BONDS VIA A GOLDMAN SACHS GROUP MERCY HEALTH SYSTEMS 237 MILLION OF ITS SERIES 1993 HEALTH SYSTEM BONDS VIA A BEAR STEARNS GROUP THE THREEPART SERIES WILL BE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND AMBAC INDEMNITY CO PALM BEACH FLORIDA 65 MILLION OF ITS SCHOOL DISTRICT GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP THE BONDS WILL CARRY INSURANCE WEST VIRGINIA PARKWAY ECONOMIC DEVELOPMENT & TOURISM AUTHORITY 120 MILLION OF ITS PARKWAY REVENUE REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP THE BONDS WILL BE INSURED BY FINANCIAL GUARANTY INSURANCE CO 9302160061 930216 BUSINESS BRIEF CIMENTS FRANCAIS SA DEFICIT OF 2318 MILLION TO BE REPORTED FOR 1992 FRENCH BUILDING MATERIALS GROUP CIMENTS FRANCAIS SA PARIS SAID FRIDAY THAT MASSIVE PROVISIONS AND ASSET WRITEDOWNS WILL CAUSE IT TO POST A 1992 LOSS OF ABOUT 13 BILLION FRANCS 2318 MILLION COMPARED WITH A PROFIT OF 401 MILLION FRANCS A YEAR EARLIER A WEEK AGO CIMENTS FRANCAIS HAD INDICATED THAT ITS 1992 LOSS WAS IN THE REGION OF 1 BILLION FRANCS THE COMPANY SAID THE HUGE LOSS INCLUDED 1 BILLION FRANCS OF NONRECURRING ITEMS INCLUDING PROVISIONS AGAINST RESTRUCTURING CHARGES AND AMORTIZATION OF ASSETS AND GOODWILL CIMENTS SAID 1992 REVENUE FELL 94 TO 1490 BILLION FRANCS FROM 1645 BILLION FRANCS IN 1991 SEPARATELY CIMENTS SAID THAT AT THE REQUEST OF SPAIN'S COMISION NACIONAL DEL MERCADO DE VALORES IT PLANS TO MAKE A PUBLIC TENDER OFFER FOR 10 OF THE CAPITAL OF CEMENTOS MOLINS A SPANISH CEMENT PRODUCER CIMENTS WILL OFFER SHAREHOLDERS OF THE SPANISH COMPANY 3700 PESETAS 3134 A SHARE MAKING THE BID WORTH 41 BILLION PESETAS 347 MILLION 9302160060 930216 BUSINESS BRIEF TUCSON ELECTRIC POWER CO FIRM POSTS QUARTERLY LOSS RESTRUCTURING COSTS CITED TUCSON ELECTRIC POWER CO REPORTED A FOURTHQUARTER LOSS OF 939 MILLION OR 187 A SHARE COMPARED WITH NET INCOME OF 203 MILLION OR 72 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTERLY RESULTS INCLUDED A 267 MILLION LOSS ON RESTRUCTURING FROM THE ISSUING OF STOCK AND WARRANTS TO CREDITORS AMONG OTHER THINGS THEY ALSO REFLECT 173 MILLION IN LEGAL AND ADVISORY FEES AND OTHER COSTS FROM THE RESTRUCTURING AS WELL AS A 26 MILLION ADDITION TO RESERVES FOR ANTICIPATED LOSSES ON THE DISPOSAL OF INVESTMENT SUBSIDIARY ASSETS UTILITY OPERATING REVENUE WAS 1515 MILLION UP FROM 1469 MILLION A YEAR EARLIER IN DECEMBER THE TUCSON ARIZ ELECTRIC UTILITY COMPLETED THE RESTRUCTURING OF 3 BILLION IN FINANCIAL OBLIGATIONS THE COMPANY ISSUED 135 MILLION COMMON SHARES IN CONNECTION WITH THE RESTRUCTURING BOOSTING TOTAL COMMON SHARES OUTSTANDING TO 1604 MILLION 9302160059 930216 ENTERPRISE WASHINGTON UPDATE SMALL BUSINESS TAKES WARY STANCE ON CLINTON'S SPEECH BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BUSINESS WARILY ANTICIPATES CLINTON'S SPEECH TOMORROW WE DON'T KNOW WHERE SMALL BUSINESS WILL FIT IN BUT WE'RE LOOKING FOR HIM TO FOLLOW THROUGH ON SOME OF HIS PROMISES SAYS WILLIAM PINKERTON PRESIDENT OF PROJECT SERVICES INTERNATIONAL A PITTSBURGH SOFTWARE CONCERN HIS MAIN WORRY IS THAT THE PRESIDENT MIGHT DO MORE HARM THAN GOOD IN HIS ZEAL TO CUT THE DEFICIT NOW THAT THE ECONOMY SEEMS TO BE RECOVERING I PERSONALLY HOPE HE WON'T DO ANYTHING TO SLOW IT DOWN OR THAT WOULD CAUSE THE MARKET TO GET JITTERY MR PINKERTON SAYS SOMETIMES THE BEST THING IS TO DO NOTHING SMALL BUSINESS GENERALLY SUPPORTS PROPOSALS MR CLINTON IS EXPECTED TO MAKE IN HIS SPEECH TO CONGRESS TO CUT THE CAPITALGAINS TAX FOR LONGTIME INVESTMENT IN SMALLER COMPANIES AND TO EASE BANK REGULATIONS BUT EXPECTED PROPOSALS TO RAISE CORPORATE AND PERSONAL TAX RATES ARE UNPOPULAR BARBARA RACKES PRESIDENT OF RACKES INC A COLUMBIA SC RETAILER OF WOMEN'S CLOTHING SAYS THE ECONOMIC SIGNALS SENT BY THE CLINTON ADMINISTRATION HAVE BEEN CONFUSING SHE SAYS A POSSIBLE TAX CREDIT FOR RESEARCH AND DEVELOPMENT WOULDN'T HELP MOST SMALL FIRMS WHILE A CAPITALGAINS TAX CUT MIGHT ONLY HELP ENTREPRENEURS WHO WANT TO SELL PART OF A COMPANY I'M NOT SURE I'VE HEARD ANYTHING THAT WOULD MAKE A MAJOR DIFFERENCE TO SMALL BUSINESSES SHE SAYS ON ANOTHER TAX FRONT SEN DALE BUMPERS D ARK CHAIRMAN OF THE SENATE SMALL BUSINESS COMMITTEE PLANS TO INTRODUCE A BILL TO INDEX CORPORATE TAX BRACKETS FOR INFLATION AS PART OF AN EFFORT TO EASE THE TAX BURDEN ON FASTGROWING SMALL COMPANIES EXPANSION PLANS BY SMALL BUSINESS CAST DOUBT ON ECONOMICSTIMULUS NEEDS THAT'S THE CONCLUSION THAT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS DRAWS FROM ITS LATEST ECONOMIC SURVEY OF BUSINESS OWNERS THE POLL'S OPTIMISM INDEX WHICH MEASURES OWNERS' SALES EXPECTATIONS AND BORROWING AND HIRING PLANS FOR THE COMING QUARTER ROSE ALMOST FOUR POINTS FROM THE LEVEL IN THE PREVIOUS POLL IN OCTOBER THE NUMBERS ARE ADJUSTED FOR SEASONAL VARIATIONS THAT SUGGESTS THAT THE ECONOMY WILL GROW BY ABOUT A 3 ANNUAL RATE IN THE CURRENT QUARTER SAYS WILLIAM DUNKELBERG THE FEDERATION'S CHIEF ECONOMIST MR DUNKELBERG SAYS THE SURVEY RESULTS INDICATE THAT THE ECONOMIC STIMULUS PRESIDENT CLINTON IS EXPECTED TO PROPOSE MAY BE UNNECESSARY ESPECIALLY ONE THAT MIGHT BE POORLY CONCEIVED AND MUDDY THE WATERS IN THE BOND MARKETS HE ADDS THAT HIGHER TAXES A HIGHER MINIMUM WAGE MANDATED FAMILY LEAVE STRIKER REPLACEMENT AND SIMILAR ITEMS THAT MR CLINTON HAS TALKED ABOUT DON'T SOUND CONSISTENT WITH JOB CREATION BUT WE'LL HAVE TO WAIT TO SEE THE SHAPE OF THE LEGISLATION AND THE MARKET RESPONSE TO IT ONE NEGATIVE FINDING IN THE NFIB REPORT THE PERCENTAGE OF SMALL FIRMS BORROWING ON A REGULAR BASIS REMAINED AT 33 THE SAME AS IN OCTOBER AND EQUAL TO THE LOWEST RATE EVER RECORDED BY THE SURVEY FRESHMAN LAWMAKERS SEEK SEATS ON SMALLBUSINESS COMMITTEES THE SENATE SMALL BUSINESS COMMITTEE IS EXPANDING TO 21 MEMBERS FROM 18 IN ORDER TO ACCOMMODATE NEW LAWMAKERS WHO CAMPAIGNED TO JOIN THE PANEL MANY NEWCOMERS ALSO MADE BIDS FOR PLACES ON THE HOUSE COMMITTEE THOUGH IT WON'T INCREASE IN SIZE ONE NEW COMMITTEE MEMBER REP MARTIN MEEHAN A MASSACHUSETTS DEMOCRAT SAYS HE SOUGHT THE ASSIGNMENT BECAUSE SMALL HIGHTECHNOLOGY COMPANIES ARE THE KEY TO JOBS IN HIS DISTRICT HE SAYS PROGRESSIVE DEMOCRATS NEED TO BE PROSMALLBUSINESS BECAUSE IT'S A MATTER OF ECONOMIC SURVIVAL PARTING SHOT A TRADE GROUP REPRESENTING VENTURECAPITAL CONCERNS THAT INVEST IN MINORITYOWNED COMPANIES WITH THE BACKING OF THE SMALL BUSINESS ADMINISTRATION HAS ACCUSED THE SBA OF A DESTRUCTIVELY NEGLIGENT ATTITUDE TOWARD ITS MEMBERS AND HARASSMENT WITHIN EVERY ASPECT OF OUR DEALING WITH THE AGENCY THE CHARGES CAME IN A LETTER THAT JOANN PRICE PRESIDENT OF THE NATIONAL ASSOCIATION OF INVESTMENT COMPANIES SENT TO FORMER SBA ADMINISTRATOR PATRICIA SAIKI JUST BEFORE MS SAIKI LEFT OFFICE MS PRICE ALLEGED THAT AGENCY OFFICIALS HAVE TRIED TO ASSIGN FEDERAL FUNDS EARMARKED FOR THE ASSOCIATION'S INVESTMENT COMPANIES TO OTHER SBA MINORITY PROGRAMS AND HAVE MISHANDLED A LAW AIMED AT GETTING MORE CAPITAL TO MEMBER FIRMS SBA OFFICIALS SAY THEY ARE VERY CONCERNED ABOUT THE ISSUES BROUGHT UP IN THE LETTER AND WANT TO MEET WITH MS PRICE TO REALLY LISTEN TO WHAT SHE HAS TO SAY AND THEN SEE WHAT THEY CAN DO A SPOKESWOMAN SAID SHE DECLINED TO COMMENT ON THE SPECIFIC CHARGES MS PRICE SAYS WE'RE LOOKING TO THE NEW ADMINISTRATION TO CHANGE THINGS MANY NAMES BUT NO FINALISTS EMERGE AS CANDIDATES TO HEAD CLINTON'S SBA SMALLBUSINESS GROUPS LOBBY FOR AN ENTREPRENEUR TO HEAD THE AGENCY NATIONAL SMALL BUSINESS UNITED PUSHES FOR ITS CURRENT PRESIDENT JACK RENNIE A MASSACHUSETTS BUSINESS OWNER WHO ALSO IS BACKED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SOME MINORITYBUSINESS ADVOCATES PUSH FORMER MARYLAND REP PARREN MITCHELL WHO WAS CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE FROM 1981 UNTIL HE RETIRED IN 1986 WASHINGTON INSIDERS SAY WOMEN CANDIDATES INCLUDE BARBARA BLUM A CARTER ADMINISTRATION OFFICIAL WHO IS NOW PRESIDENT OF ADAMS NATIONAL BANK IN WASHINGTON SOME FORMER SBA OFFICIALS FROM THE CARTER YEARS ALSO MAY BE IN THE RUNNING THEY INCLUDE MERCURIO MARTINEZ A COUNTY JUDGE IN LAREDO TEXAS WHO HAS OWNED BUSINESSES AS WELL AS RUDY ESTRADA AND RICK HERNANDEZ OTHERS MENTIONED BY BELTWAY ANALYSTS INCLUDE WASHINGTON LAWYER WELDON LATHAM BOB BROWN A FORMER FEDERAL HOUSING OFFICIAL AND PAT BURR A PROFESSOR IN TEXAS AND A FORMER BUSINESS OWNER THE NAMES OF SOME CLINTON CAMPAIGN ACTIVISTS ALSO ARE FLOATED FOR THE POST PROBABLY JUST AS POLITICAL FAVORS ONE IS CHARLENE DREW JARVIS A MEMBER OF WASHINGTON'S CITY COUNCIL WHO HEADED CLINTON'S CAMPAIGN IN THE CAPITAL SMALLBUSINESS ADVOCATES EXPECT THE CLINTON ADMINISTRATION'S SBA WILL STRESS ECONOMIC DEVELOPMENT AS MUCH AS LOAN PROGRAMS SMALL TALK MORE THAN 2000 TRUCKING COMPANIES MOST OF THEM SMALL BUSINESSES FAILED IN EACH OF THE PAST TWO YEARS OFFICIALS OF THE AMERICAN TRUCKING ASSOCIATION SAID IN A RECENT LETTER TO PRESIDENT CLINTON OPPOSING A GASOLINE TAX THE SELFEMPLOYED ARE SIGNIFICANTLY HAPPIER THAN EMPLOYEES CONCLUDED A RECENT STUDY OF US AND BRITISH ENTREPRENEURS BY PROFESSORS AT DARTMOUTH UNIVERSITY AND THE LONDON SCHOOL OF ECONOMICS 9302160058 930216 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS ALL INITIAL PUBLIC OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE INITIAL OFFERING AND THE NATIONAL MARKET SYSTEM ANNOUNCED 10 INCLUDING EIGHT INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING THE FOLLOWING IPOS LEVIATHAN GAS PIPELINE PARTNERS LP HOUSTON AN OPERATOR AND MANAGER OF NATURAL GAS PIPELINES UNDER LEV PREFERRED INCOME MANAGEMENT FUND INC PASADENA CALIF A MANAGEMENT INVESTMENT FIRM UNDER PFM CARR REALTY CORP WASHINGTON A REAL ESTATE INVESTMENT AND MANAGEMENT COMPANY UNDER CRE THE AMERICAN STOCK EXCHANGE BEGAN TRADING ON BIOSAFTEY SYSTEMS INC SAN DIEGO CALIF A DESIGNER AND MARKETER OF HEALTHCARE SAFETY PRODUCTS UNDER BSS THE FOLLOWING COMPANIES BEGAN TRADING AS INITIAL PUBLIC OFFERINGS ON THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET CHESAPEAKE ENERGY CORP OKLAHOMA CITY OKLA AN OIL AND GAS CONCERN UNDER CSPK GUPTA CORP MENLO PARK CALIF A COMPUTER SOFTWARE PRODUCTS CONCERN UNDER GPTA MOLECULAR DYNAMICS INC SUNNYVALE CALIF A MAKER AND MARKETER OF HIGH PERFORMANCE IMAGE ACQUISITION AND ANALYSIS INSTRUMENTS FOR LIFE SCIENCE RESEARCH UNDER MDYN CATALYTICA INC MOUNTAIN VIEW CALIF A DEVELOPER OF CATALYSTS CATALYTIC SYSTEMS AND PROCESSES TO ELIMINATE OR MINIMIZE ENVIRONMENTAL POLLUTION UNDER CTAL CREE RESEARCH INC DURHAM NC A MAKER AND MARKETER OF ELECTRONIC DEVICES MADE FROM SILICON CARBIDE UNDER CREE GLOBAL INDUSTRIES LTD LAFAYETTE LA A PROVIDER OF PIPELINE CONSTRUCTION DERRICK AND DIVING SERVICES FOR THE OFFSHORE GAS AND OIL INDUSTRY UNDER GLBL CYBERONICS INC WEBSTER TEXAS A DESIGNER AND DEVELOPER OF MEDICAL DEVICES FOR THE TREATMENT OF EPILEPSY AND OTHER NEUROLOGICAL DISORDERS UNDER CYBX MOLTEN METAL TECHNOLOGY INC WALTHAM MASS AN ENVIRONMENTAL TECH INTERVISUAL BOOKS INC SANTA MONICA CALIF A PRODUCER OF POPUP NOVELTY BOOKS UNDER IVBK MOVES FROM THE AMERICAN STOCK EXCHANGE TO THE NATIONAL MARKET SYSTEM PEOPLES BANCORP INC MARIETTA OHIO A MULTIBANK HOLDING COMPANY UNDER PEBO FORMERLY TRADED ON THE PINK SHEETS HAS BEEN APPROVED FOR TRADING ON THE NATIONAL MARKET SYSTEM THE FOLLOWING COMPANIES FORMERLY TRADED ON THE NASDAQ SMALL CAP MARKET AND HAVE BEEN APPROVED FOR THE NATIONAL MARKET SYSTEM INDEPENDENT ENTERTAINMENT GROUP INC LOS ANGELES CALIF A MEDIA CONCERN SERVICING THE PAYPERCALL AND PAYPERVIEW INDUSTRY UNDER INDE TIDE WEST OIL CO TULSA OKLA AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY WHICH ALSO TRANSPORTS OTHER PRODUCTION WASTE FUELS UNDER TIDED THE PHILADELPHIA STOCK EXCHANGE SAID IT WILL BEGAN TRADING PUT AND CALL OPTIONS ON THE FOLLOWING COMPANIES AMERICAN MEDICAL HOLDINGS INC BOMBAY CO NORTH AMERICA MORTGAGE CO AND REVCO DS INC 9302160057 930216 UNIVERSAL BUYS CASALEE GROUP RICHMOND VA UNIVERSAL CORP SAID IT COMPLETED THE PURCHASE OF INTERNATIONAL TOBACCO CONCERN CASALEE GROUP SA FOR 100 MILLION UNIVERSAL SAID CASALEE GROUP HAS ITS PRINCIPAL OPERATIONS IN BRAZIL AND SEVERAL AFRICAN COUNTRIES AS WELL AS SIGNIFICANT TRADING ACTIVITIES IN THE FAR EAST AND EASTERN EUROPE CASALEE'S PROJECTED SALES FOR ITS FISCAL YEAR ENDED IN MARCH 1993 ARE ABOUT 350 MILLION 9302160056 930216 WORLD MARKETS TOKYO SHARES GET A TECHNICAL BOOST EQUITIES FINISH MIXED IN LONDON SURGE IN HONG KONG A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS GAINED SMARTLY MONDAY IN A TECHNICAL RECOVERY FOLLOWING LAST WEEK'S POOR SHOWING LONDON PRICES FINISHED MIXED IN ACTIVITY THAT WAS SUBDUED BY THE HOLIDAY IN THE US AND THE ABSENCE OF ANY NEWS TO MOVE THE BRITISH MARKET HONG KONG STOCKS HAD THEIR BEST SESSION IN TWO MONTHS FOLLOWING WEEKEND RUMORS OF A RAPPROCHEMENT BETWEEN CHINESE AND BRITISH NEGOTIATORS ON PLANS FOR POLITICAL REFORM IN THE BRITISH COLONY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 23839 POINTS FRIDAY REBOUNDED 26648 OR 16 TO 1711799 WHICH ALSO WAS THE HIGH FOR THE DAY ON TUESDAY THE NIKKEI EASED 391 POINTS TO CLOSE THE MORNING SESSION AT 1711408 MONDAY'S FIRSTSECTIONVOLUME WAS ESTIMATED AT 190 MILLION SHARES DOWN SHARPLY FROM 2817 MILLION SHARES FRIDAY WHEN TURNOVER WAS PUMPED UP BY POSITIONING TIED TO THE SPECIALQUOTATIONS SETTLEMENT OF FEBRUARY INDEX OPTIONS GAINERS OUTNUMBERED RETREATING ISSUES 595334 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 698 POINTS FRIDAY ROSE 1181 TO 130076 THE NIKKEI LAST WEEK SLUMPED IN THREE OF THE FOUR TRADING SESSIONS INTERRUPTED BY A ONEDAY JAPANESE HOLIDAY ON MONDAY THE INDEX MARKED ITS INTRADAY LOW OF 1682999 MINUTES AFTER THE OPENING AND TRACKED HIGHER THROUGHOUT THE SESSION THOUGH NEARLY HALF OF THE NIKKEI'S GAINS CAME IN THE FINAL 15 MINUTES OF TRADING AS STOCK PRICES FOLLOWED INDEX FUTURES HIGHER EXPORTORIENTED SHARES STARTED ON THE RECOVERY TRACK AS THE YEN EASED A BIT AGAINST THE DOLLAR LOWPRICED SHARES SAW HEAVY TURNOVER AS MANY INDIVIDUAL INVESTORS RETURNED AFTER SITTING ON THE SIDELINES IN RECENT SESSIONS BUT SENTIMENT REMAINED FRAGILE AND THE YENDOLLAR SITUATION CONTINUED TO CAPTURE MOST PARTICIPANTS' ATTENTION THE YEN'S STRENGTH HURTS EXPORTERS BY REDUCING RETURNS FROM OVERSEAS SALES WHEN CONVERTED TO THE JAPANESE CURRENCY TOKYO SHARE PRICES GAVE WAY AST WEEK AS THE JAPANESE CURRENCY GAINED ON THE DOLLAR LARGELY IN RESPONSE TO THE CALLS BY A FORMER US TREASURY OFFICIAL WHO IS CLOSE TO THE CLINTON ADMINISTRATION FOR A 15 TO 20 STRENGTHENING OF THE YEN BUT FINANCE MINISTER YOSHIRO HAYASHI SAID SUNDAY THAT HE AND US TREASURY SECRETARY LLOYD BENTSEN IN THEIR FIRST MEETING AGREED THAT FUNDAMENTALS SHOULD BE LEFT TO DETERMINE EXCHANGE RATES STILL TOKYO INVESTORS WERE JITTERY AHEAD OF MR CLINTON'S SPEECH AND UNVEILING OF HIS ECONOMIC PACKAGE TOMORROW FOR ANY EFFECTS ON TRADE POLICY AND CURRENCY MOVEMENTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 29 POINTS TO 28459 THE FT 30STOCK INDEX EDGED UP 02 POINT TO 21878 VOLUME WAS 5158 MILLION SHARES DOWN SHARPLY FROM 830 MILLION SHARES IN THE PREVIOUS SESSION IN THE TYPICALLY QUIET START TO A NEW TWOWEEK TRADING ACCOUNT IN LONDON AMID A LACK OF GUIDANCE FROM OVERSEAS MARKETS STOCKS THAT BEGAN TRADING EXDIVIDEND MONDAY SHAVED ABOUT 3 POINTS OFF THE 100STOCK INDEX INVESTORS STAYED LARGELY SIDELINED AHEAD OF A HOST OF DATA EXPECTED TO SHED LIGHT LATER THIS WEEK ON BRITAIN'S ECONOMY MANY INVESTORS BELIEVED THAT BULLISH RETAILPRICE DATA RELEASED FRIDAY LEAVE THE BRITISH GOVERNMENT AN OPENING TO SANCTION A CUT IN BASE LENDING RATES TO STIMULATE THE ECONOMY IN HONG KONG THE BLUECHIP HANG SENG INDEX SURGED 19129 POINTS OR 33 TO 604944 TURNOVER SWELLED TO 352 BILLION HONG KONG DOLLARS US4555 MILLION THE STRONGEST THIS YEAR FROM THE PREVIOUS SESSION'S HK204 BILLION THE HANG SENG HAS GAINED 94 THIS YEAR WITH MONDAY'S RISE TAKING IT TO ITS FIRST CLOSE ABOVE 6000 SINCE NOV 17 IT ALSO WAS THE INDEX'S BEST PERFORMANCE SINCE THE ROLLERCOASTER WEEK OF EARLY DECEMBER WHEN THE INDEX DROPPED 17 AND THEN REBOUNDED 5 AS THE ROW OVER HONG KONG GOV CHRIS PATTEN'S REFORM PLANS BECAME PRONOUNCED AFTER THE HONG KONG MARKET CLOSED CHINA REPEATED ITS DEMAND THAT MR PATTEN DROP HIS PROPOSALS FOR DEMOCRATIC CHANGE NONETHELESS IF BRITAIN AND CHINA DO COMPROMISE MUCH OF THE CASH THAT FOREIGN FUND MANAGERS HAVE MOVED TO OTHER REGIONAL MARKETS COULD RETURN TO HONG KONG BECAUSE HONG KONG'S MARKET IS AMONG ASIA'S LARGEST IN TERMS OF MARKET CAPITALIZATION MISSING ONE OF ITS RALLIES COULD SERIOUSLY DENT A REGIONAL PORTFOLIO'S PERFORMANCE MONDAY'S ACTIVITY SUGGESTED REGIONAL INVESTORS WERE TEMPTED BY HONG KONG'S PROPERTY STOCKS IN FRANKFURT SHARE PRICES FINISHED A QUIET SESSION MARGINALLY HIGHER THE DAX 30STOCK INDEX ROSE 328 POINTS TO 166471 NEAR THE INTRADAY HIGH OF 166493 THOUGH THE AVERAGE REMAINED CONFINED IN A TIGHT RANGE OF ABOUT 10 POINTS PARIS SHARE PRICES DRIFTED LOWER IN QUIET TRADING WITHOUT ANY GUIDING SIGNALS FROM A HOLIDAYSHUT WALL STREET THOUGH DEFENSESECTOR STOCKS GOT A BOOST FROM NEWS OF A MULTIBILLIONDOLLAR ORDER FOR FRENCH TANKS FROM THE UNITED ARAB EMIRATES AMSTERDAM STOCKS CLOSED MIXED WITH A FIRM UNDERTONE AFTER TRADING WAS SUSPENDED IN MIDAFTERNOON BECAUSE OF A POWER FAILURE MILAN EQUITIES ADVANCED LED BY THE AUTO SECTOR WHERE GAINS SPILLED OVER INTO OTHER BLUE CHIPS SENTIMENT ALSO WAS BOOSTED BY NEWS FRIDAY THAT THE ITALIAN GOVERNMENT ACTED ON MEASURES TO AID THE STOCK MARKET BUT A BUYING WAVE CALMED TOWARD THE END OF THE SESSION BECAUSE OF PROFITTAKING CHARACTERISTIC OF THE LAST DAY OF THE MONTHLY TRADING CYCLE STOCKHOLM SHARES ROSE SLIGHTLY MARKING THEIR EIGHTH CONSECUTIVE ADVANCE THOUGH A WEAK AFTERNOON PERFORMANCE ALL BUT WIPED OUT EARLY GAINS IN SYDNEY PRICES EASED AFTER WALL STREET'S DECLINE FRIDAY THE CONSOLIDATION WAS EXPECTED FOLLOWING SEVEN SESSIONS IN A A ROW OF GAINS SINGAPORE SHARES CLOSED MIXED TO SLIGHTLY HIGHER WITH INSTITUTIONAL INVESTORS SIDELINED AND BLUE CHIPS SEESAWING IN TECHNICAL TRADING ON A TOUCH OF UNEASINESS ABOUT PRESIDENT CLINTON'S ECONOMIC POLICY FOR THE US TAIPEI PRICES WERE NARROWLY HIGHER IN EXTREMELY HECTIC TRADING AMID STRONG BUYING MOMENTUM AND HEAVY PROFITTAKING SEOUL STOCKS ROSE SLIGHTLY AFTER OPENING HIGHER ON EXPECTATIONS OF SOUTH KOREAN GOVERNMENT ACTION TO RESTRUCTURE THE FINANCIAL INDUSTRY THEN SURRENDERING MOST GAINS AMID SELLING PRESSURE ON LARGECAPITALIZATION ISSUES AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AIRWAYS FELL 4 PENCE OR 14 TO 279 PENCE 396 AHEAD OF TODAY'S EXPECTED RELEASE OF PROFIT FIGURES ANALYSTS EXPECT A STEEP DROP IN EARNINGS MAINLY BECAUSE OF THE POUND'S DEVALUATION IN AMSTERDAM FOKKER SOARED 180 GUILDERS OR 17 TO 1230 GUILDERS 659 ON INVESTORS' EXPECTATIONS THAT THE DUTCH GOVERNMENT AND THE DEUTSCHE AEROSPACE UNIT OF DAIMLERBENZ A GERMAN CONGLOMERATE WOULD UNVEIL A DEFINITIVE AGREEMENT TO TAKE OVER THE AIRCRAFT MAKER SOON LATER THE GOVERNMENT APPROVED THE ACQUISITION AND DEUTSCHE AEROSPACE SAID IT WOULD ACQUIRE 51 OF A NEW FOKKER HOLDING COMPANY 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 9302160055 930216 BUSINESS BRIEF NORANDA INC FIRM TO CUT ZINC OUTPUT EARNED 32 MILLION IN PERIOD NORANDA INC CITING A WORLDWIDE SURPLUS OF ZINC SAID ITS WILL CUT ITS OUTPUT OF THE METAL BY ABOUT 75 THIS YEAR FROM LAST YEAR'S LEVELS NORANDA BASED IN TORONTO SAID SUMMER SHUTDOWNS AND CHANGES TO ITS MINING PLAN WILL REDUCE PRODUCTION THIS YEAR TO ABOUT 530000 METRIC TONS OF ZINC DOWN FROM 573000 METRIC TONS IN 1992 WHICH REPRESENTED ABOUT 10 OF THE WESTERN WORLD'S OUTPUT LAST YEAR A METRIC TON EQUALS 22046 POUNDS NORANDA A DIVERSIFIED NATURAL RESOURCES CONCERN ALSO REPORTED FOURTHQUARTER PROFIT OF FOUR MILLION CANADIAN DOLLARS US32 MILLION COMPARED WITH A LOSS OF C109 MILLION A YEAR EARLIER AFTER PAYING PREFERREDSHARE DIVIDENDS NORANDA'S HAD A PERSHARE LOSS OF SIX CANADIAN CENTS A SHARE IN THE LATEST QUARTER COMPARED WITH A LOSS OF 67 CANADIAN CENTS A SHARE A YEAR EARLIER REVENUE ROSE 8 TO C215 BILLION FROM C199 BILLION FOR THE FULL YEAR NORANDA HAD A PROFIT OF C79 MILLION OR 10 CANADIAN CENTS A SHARE COMPARED WITH A LOSS OF C133 MILLION OR C104 A SHARE A YEAR EARLIER REVENUE ROSE TO 864 BILLION FROM 846 BILLION THE COMPANY SAID ITS RESULTS IMPROVED MAINLY BECAUSE OF LOWER INTEREST RATES REDUCED OVERHEAD COSTS AND A DROP IN THE VALUE OF THE CANADIAN DOLLAR 9302160054 930216 BUSINESS BRIEF PACIFIC TELECOM INC CHARGE AFTER UNIT'S DISPOSAL LEADS TO LOSS FOR 4TH PERIOD PACIFIC TELECOM INC HURT BY A 457 MILLION CHARGE FOR A DISCONTINUED OPERATION POSTED A FOURTHQUARTER LOSS OF 196 MILLION OR 50 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 164 MILLION OR 41 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 1863 MILLION FROM 1886 MILLION THE VANCOUVER WASH CABLETELEVISION COMPANY SAID THE LOSS WAS RELATED TO ITS INVESTMENT IN INTERNATIONAL COMMUNICATIONS HOLDINGS INC WHICH HAS BEEN REPORTED AS A DISCONTINUED OPERATION AFTER PACIFIC TELECOM AGREED TO SELL ITS MAJOR SUBSIDIARY TRT COMMUNICATIONS INC FOR THE YEAR NET INCOME WAS 215 MILLION OR 54 CENTS A SHARE DOWN FROM 811 MILLION OR 205 A SHARE A YEAR EARLIER THE DECLINE WAS BLAMED ON LOWER SUBSCRIBER RATES CAUSED BY COMPETITION REVENUE FELL TO 7045 MILLION FROM 7244 MILLION 9302160053 930216 BUSINESS BRIEF KENTUCKY CENTRAL LIFE INSURANCE CO STATE IS ASKED TO PRESERVE ASSETS PROTECT POLICYHOLDERS KENTUCKY CENTRAL LIFE INSURANCE CO LEXINGTON KY SAID IT ASKED THE KENTUCKY INSURANCE COMMISSIONER TO TAKE APPROPRIATE STEPS TO PRESERVE THE ASSETS OF THE COMPANY THE INSURER ALSO WANTS THE STATE TO PROTECT THE COMPANY'S POLICYHOLDERS SHAREHOLDERS CREDITORS AND OTHER INTERESTED PERSONS A SPOKESMAN DECLINED TO ELABORATE ON THE REQUEST BUT SAID IT DOESN'T MEAN THE COMPANY IS INSOLVENT THE REQUEST FOLLOWED THE CALIFORNIA INSURANCE COMMISSIONER'S ORDER THAT KENTUCKY CENTRAL STOP TRANSACTING NEW INSURANCE BUSINESS IN THAT STATE BECAUSE OF CONCERNS ABOUT THE COMPANY'S CAPITALINRESERVE REQUIREMENT THE COMPANY WILL CONTINUE TO SERVE ITS OLD BUSINESS KENTUCKY CENTRAL SAID SIMILAR ACTIONS ARE THREATENED IN OTHER STATES LAST WEEK AN AGREEMENT WITH WHR MANAGEMENT CO NEW YORK THAT WOULD HAVE GIVEN THE COMPANY A 100 MILLION INFUSION WAS TERMINATED AT THAT TIME THE COMPANY SAID IT WAS FULLY CAPABLE OF MEETING POLICYHOLDERS' NEEDS 9302160052 930216 BELLSOUTH UNIT SEEKS TO GAIN FOOTHOLD IN NEW ZEALAND CELLULARPHONE MARKET BY VINOD DAHYA SPECIAL TO THE WALL STREET JOURNAL WELLINGTON NEW ZEALAND TELECOM CORP OF NEW ZEALAND'S HIGHLY PROFITABLE GROWTH IN THE CELLULARPHONE BUSINESS IS EXPECTED TO DECLINE SHARPLY IN THE NEXT THREE YEARS AS COMPETITION INCREASES TELECOM CONTROLLED BY BELL ATLANTIC CORP AND AMERITECH CORP OF THE US CURRENTLY OPERATES THE ONLY CELLULARPHONE NETWORK IN NEW ZEALAND BUT BELLSOUTH NEW ZEALAND A UNIT OF USBASED BELLSOUTH CORP PLANS TO INTRODUCE A RIVAL CELLULARPHONE BUSINESS BY MIDMAY ANALYSTS PREDICT BELLSOUTH COULD CUT TELECOM'S SHARE OF NEW CUSTOMERS IN HALF WITHIN THREE YEARS BELLSOUTH'S ENTRY WILL BE ANOTHER BLOW FOR TELECOM WHICH UNTIL THE NEW ZEALAND TELECOMMUNICATIONS MARKET WAS DEREGULATED IN 1989 HAD A MONOPOLY ON THE LOCAL INDUSTRY RISING COMPETITION IN OTHER SECTORS OF ITS BUSINESS HAS LED TO A FLATTENING IN TELECOM'S EARNINGS IN THE SIX MONTHS ENDED SEPT 30 OPERATING PROFIT ROSE A SCANT 17 TO 1854 MILLION NEW ZEALAND DOLLARS US954 MILLION THAT COMPARES WITH A 24 PROFIT GAIN FOR THE SIX MONTHS ENDED SEPT 30 1991 THE THIRD QUARTER SHOWED A SLIGHTLY BETTER PACE THIS MORNING IN NEW ZEALAND TELECOM REPORTED OPERATING PROFIT ROSE 53 IN ITS NINE MONTHS ENDED DEC 31 FROM THE YEAREARLIER PERIOD TO NZ3058 MILLION ON AVERAGE ANALYSTS PROJECT THAT IN THE FISCAL YEAR ENDING MARCH 31 TELECOM'S PROFIT WILL RISE JUST 25 FOLLOWING A 20 RISE IN THE PREVIOUS FISCAL YEAR YET FOR NOW REVENUE GROWTH FROM CELLULAR PHONES REMAINS HOT IN THE LATEST FISCAL HALF TELECOM'S CELLULAR REVENUE JUMPED 19 TO 67 MILLION NEW ZEALAND DOLLARS WHILE THIS REPRESENTS LESS THAN 6 OF THE COMPANY'S TOTAL SALES ANALYSTS SAY IT MADE A LARGE CONTRIBUTION TO THE COMPANY'S OVERALL RISE IN EARNINGS THE COST OF CONNECTING NEW SUBSCRIBERS TO A CELLULAR NETWORK IS LOW AND MOST OF THE SALES INCREASE FLOWED DIRECTLY INTO PROFITS THEY SAY CURRENTLY TELECOM HAS AROUND 95000 CELLULAR PHONE CUSTOMERS UP FROM ABOUT 70000 IN JANUARY AND IT EXPECTS THAT CUSTOMER BASE TO INCREASE TO 100000 USERS IN THE NEXT FEW MONTHS ANALYSTS PREDICT THAT TELECOM'S CELLULAR BUSINESS WILL GENERATE REVENUE OF 150 MILLION NEW ZEALAND DOLLARS IN THE YEAR ENDING MARCH 31 UP 27 FROM A YEAR EARLIER BUT THEY PREDICT THAT THE LEVEL OF GROWTH IN CELLULAR REVENUE WILL ERODE WITHIN THREE YEARS ONCE BELLSOUTH NEW ZEALAND BECOMES COMPETITIVE THE ANALYSTS SEE BELLSOUTH NOT ONLY WINNING A SHARE OF NEW CELLULARPHONE CUSTOMERS THAT WOULD OTHERWISE HAVE JOINED THE TELECOM NETWORK BUT THEY ALSO EXPECT TELECOM TO CUT PRICES OVER THE NEXT FEW MONTHS TO COUNTER BELLSOUTH'S BID FOR CUSTOMERS JAMIE MACDONALD MARKETING MANAGAER FOR TELECOM'S CELLULARPHONE UNIT SAID HE EXPECTS TO LOSE MARKET SHARE TO BELLSOUTH HOWEVER HE DOESN'T ANTICIPATE TELECOM'S CELLULARPHONE REVENUE TO BEGIN DECREASING FOR AT LEAST FOR A COUPLE OF YEARS YET MR MACDONALD SEES BELLSOUTH NEW ZEALAND'S ENTRY ACTUALLY STIMULATING FURTHER GROWTH IN THE MARKET AND FOR SOME TIME MORE THAN OFFSETTING ANY NEW CUSTOMERS THAT TELECOM MIGHT LOSE TO BELLSOUTH BELLSOUTH WILL BE INTERESTED IN LIFTING ITS PROFILE AND IN DOING SO WILL NO DOUBT RAISE THE OVERALL PROFILE OF THE CELLULARPHONE MARKET HE PREDICTED CLIVE LITT PUBLIC AFFAIRS MANAGER FOR TELECOM SEES ONLY LIMITED COMPETITION FROM BELLSOUTH UNTIL IT CAN OFFER CELLULARPHONE SERVICE THROUGHOUT NEW ZEALAND BELLSOUTH'S NETWORK WILL INITIALLY BE CONCENTRATED AROUND AUCKLAND TO COUNTER BELLSOUTH'S THREAT TELECOM PLANS TO PROVIDE A CUSTOMERORIENTED SERVICE MR LITT SAID HE DECLINED TO ELABORATE ON THE COMPANY'S COMPETITIVE PLANS KEITH DAVIS CHIEF EXECUTIVE OFFICER FOR BELLSOUTH NEW ZEALAND SAID HIS COMPANY WILL LAUNCH ITS CELLULAR BUSINESS WITH FAIRLY EXTENSIVE COVERAGE OF THE REGION SURROUNDING AUCKLAND BUT COVERAGE OF MOST OTHER AREAS OF THE COUNTRY MIGHTN'T BE IN PLACE UNTIL 1995 HE SAID BELLSOUTH WILL SPEND ABOUT 200 MILLION NEW ZEALAND DOLLARS TO DEVELOP ITS NEW ZEALAND SYSTEM OVER THE NEXT THREE TO FIVE YEARS MR DAVIS SAID HE FORECASTS AN ADDITIONAL 200000 TO 300000 CELLULARPHONE USERS IN NEW ZEALAND DURING THAT PERIOD TELECOM'S MR MACDONALD BELIEVES THERE IS POTENTIAL FOR THE CELLULARPHONE MARKET TO MORE THAN DOUBLE BUT HE EXPECTS THAT TO TAKE UP TO SEVEN YEARS TELECOM'S MR LITT SAID THE COMPANY'S BIGGEST CURRENT COMPETITIVE THREAT COMES FROM CLEAR COMMUNICATIONS LTD WHICH HAS PICKED UP ABOUT 15 OF NEW ZEALAND'S INTERNATIONAL AND LOCAL TOLL MARKETS SINCE DEREGULATION CLEAR IS OWNED BY A CONSORTIUM THAT INCLUDES MCI COMMUNICATIONS CORP OF THE US AND BELL CANADA A UNIT OF BCE INC MONTREAL 9302160051 930216 MEDIA CAPITAL CITIES AND TURNER MAY BID JOINTLY FOR OLYMPICS BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA IN A MOVE THAT WOULD REPRESENT A MAJOR CHANGE IN THE PURCHASE AND PACKAGING OF THE OLYMPIC GAMES ON TELEVISION CAPITAL CITIES/ABC INC AND TURNER BROADCASTING SYSTEM INC ARE CONSIDERING MAKING A JOINT BID TO BROADCAST THE 1996 SUMMER OLYMPICS HERE ACCORDING TO TWO INDIVIDUALS CLOSE TO THE TALKS AT TURNER TERENCE F MCGUIRK EXECUTIVE VICE PRESIDENT CONFIRMED THAT THE COMPANY HAS HAD DISCUSSIONS WITH ALL THREE NETWORKS ABOUT THE 1996 GAMES HE SAID THE TALKS WITH ABC WERE THE MOST EXTENSIVE BECAUSE ABC'S CABLE INTERESTS ARE MORE SYNONYMOUS WITH OURS IF SUCCESSFUL THE TWO COMPANIES ACCORDING TO ONE SCENARIO UNDER DISCUSSION WOULD TELEVISE THE GAMES ON A TOTAL OF FOUR NETWORKS ABC A UNIT OF CAPITAL CITIES ESPN A SPORTS CHANNEL THAT IS MAJORITYOWNED BY CAPITAL CITIES AND TBS AND TNT CABLE NETWORKS OWNED BY TURNER MOREOVER THE FOUR OUTLETS COULD BROADCAST PORTIONS OF THE OLYMPICS SIMULTANEOUSLY A VIEWER IN A HYPOTHETICAL EXAMPLE COULD WATCH GYMNASTICS ON ABC OR SWITCH TO TNT TO WATCH WATER POLO TRADITIONALLY A SINGLE NETWORK HAS BOUGHT THE US RIGHTS TO THE GAMES AND PROVIDED EXCLUSIVE COVERAGE OF EVENTS ONLY LAST YEAR DID CBS INC PARCEL OUT SELECT PIECES OF THE 1992 WINTER OLYMPICS TO TURNER AS IT TURNS OUT AND ONLY LAST YEAR DID NBC A UNIT OF GENERAL ELECTRIC CO SET UP PAYPERVIEW COVERAGE OF THE 1992 SUMMER GAMES OVER THREE CABLE CHANNELS IN BOTH CASES THE NETWORKS FIRST BOUGHT THE RIGHTS THEMSELVES WITH CBS PAYING 543 MILLION FOR THE 1992 AND 1994 WINTER GAMES AND NBC PAYING 401 MILLION FOR THE 1992 SUMMER GAMES AND IN BOTH CASES THE NETWORKS ENSURED THAT THE CABLE OFFERINGS DIDN'T CONFLICT WITH THEIR OWN DAILY BROADCASTS IF THEY ARE ABLE TO BID JOINTLY CAPITAL CITIES AND TURNER WOULD SHARE THE FINANCIAL RISK AND BY BROADCASTING DIFFERENT PIECES OF THE OLYMPICS ON FOUR DIFFERENT CHANNELS WITH DIFFERENT EDITORIAL APPROACHES THE TWO COMPANIES MIGHT BE ABLE TO REACH A WIDER AUDIENCE THAN NORMAL THE NETWORK STILL HAS TO FILL THE ROLE FOR THE MASS AUDIENCE SAID ONE PERSON CLOSE TO THE NEGOTIATIONS SHAPING SPORTS STORIES WITH A CONVENIENT BEGINNING MIDDLE AND END BUT SOME VIEWERS HE ADDS ARE HUNGRY FOR EVERY MINUTE OF AN EVENT CABLE FILLS THAT VOID TURNER AND CAPITAL CITIES ARE STILL DISCUSSING HOW THEY WOULD STRUCTURE THE PROGRAMMING AND HOW MUCH THEY MIGHT BE WILLING TO PAY FOR THE RIGHTS BUT THE TWO COMPANIES COULD MAKE A BID FOR THE ATLANTA GAMES AS EARLY AS THIS SPRING SAID THE PERSON CLOSE TO THE TALKS A SPOKESMAN FOR ABC SPORTS DECLINED TO COMMENT MR MCGUIRK SAID HE EXPECTS THE COMPANY'S STANCE TO BE RESOLVED BY THE SUMMER HE SAID HE COULDN'T RULE OUT THE ESPN/ABC/TNT/TBS FORMAT BUT COULDN'T SAY IT IS PART OF THE COMPANY'S PLAN LAST WEEK IT WAS DISCLOSED THAT TURNER HAS HELD HIGHLEVEL TALKS WITH CAPITAL CITIES AND OTHER MEDIA COMPANIES RECENTLY AND HAS DISCUSSED POSSIBLE MERGERS ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE SITUATION FEDERAL REGULATIONS HOWEVER AND TURNER'S COMPLEX OWNERSHIP STRUCTURE LIKELY WOULD MAKE IT DIFFICULT FOR THE CABLE PROGRAMMING GIANT TO PURSUE A MERGER WITH A NETWORK INDEED ONE TURNER INSIDER LAST WEEK SAID THE MAIN FOCUS OF THE TURNERABC TALKS WAS PROBABLY COOPERATION ON SPORTING EVENTS BROADCAST INDUSTRY EXECUTIVES HAVE LONG SURMISED THAT CABLE WOULD PLAY SOME ROLE IN THE 1996 GAMES IF FOR NO OTHER REASON THAN TO HELP SHOULDER THE ENORMOUS COST WHILE OLYMPIC OFFICIALS IN ATLANTA HAVE EXPRESSED OPTIMISM THAT THEY WILL EXCEED THE 549 MILLION CURRENTLY BUDGETED FOR THE SALE OF ALL TV RIGHTS ESTIMATES VARY WIDELY AS TO HOW MUCH US BIDDERS MIGHT BE WILLING TO PAY OVER AND ABOVE THE 401 MILLION THAT NBC PAID FOR BARCELONA JAMES R SPENCE A FORMER PRESIDENT OF ABC SPORTS WHO NOW HEADS SPORTS TELEVISION INTERNATIONAL A NEW YORK CONSULTING FIRM HAS SAID THAT ALL THREE NETWORKS POSTED LOSSES ON THEIR MOST RECENT OLYMPICS SOME TV EXECUTIVES AND CONSULTANTS HAVE POINTED OUT THAT THE INTERNATIONAL OLYMPIC COMMITTEE WHICH CONTROLS THE RIGHTS TO THE 1996 GAMES COULD OBTAIN MORE REVENUE FROM CABLE RIGHTS IF THOSE RIGHTS WERE SOLD SEPARATELY FROM NETWORK RIGHTS THE PROBLEM HOWEVER IS THAT THE NETWORK WINNER AND THE CABLE WINNER COULD END UP COMPETING FOR ADVERTISERS AND VIEWERS ACCORDING TO THE SOURCE CLOSE TO THE TURNERCAPITAL CITIES TALKS THE TWO COMPANIES ALREADY ARE APPROACHING BUYERS OF AD TIME ON MADISON AVENUE TO GAUGE THEIR INTEREST IN A JOINT BID FOR THE ATLANTA GAMES IT ONLY WORKS IF MADISON AVENUE BUYS INTO IT OTHERWISE CAPITAL CITIES AND TURNER END UP SELLING AGAINST EACH OTHER THE PERSON CONCEDES NEGOTIATORS HOPE ADVERTISERS THAT AGREED TO PURCHASE TIME WOULD APPEAR ON ALL FOUR NETWORKS BUT THE CURRENT TALKS APPARENTLY AREN'T TO THE POINT OF SPECIFIC PURCHASES RATHER THEY ARE EFFORTS TO DETERMINE THAT POTENTIAL BUYERS AREN'T OPPOSED TO THE IDEA TURNER HAS STEADILY BEEN INCREASING ITS INVOLVEMENT WITH THE OLYMPIC MOVEMENT IN ADDITION TO PAYING 50 MILLION TO CBS FOR PIECES OF THE 1992 AND 1994 WINTER OLYMPICS THE COMPANY HAS ACQUIRED THE 199395 RIGHTS TO THE US OLYMPIC FESTIVAL PREVIOUSLY OWNED BY ESPN THE FESTIVAL IS A SERIES OF ATHLETIC EVENTS HELD IN NONOLYMPIC YEARS TURNER ALSO PLANS TO CARRY A PORTION OF THE US OLYMPIC TRIALS IN 1996 FOR ITS PART ABC WHICH COVERED 10 OF THE 12 OLYMPICS BEFORE THE 1988 GAMES IN SEOUL SOUTH KOREA HASN'T TELEVISED AN OLYMPICS SINCE THE 1988 WINTER GAMES IN CALGARY CANADA DANIEL PEARL CONTRIBUTED TO THIS ARTICLE 9302160050 930216 ULTRAMAR CORP'S CANADIAN UNIT TARRYTOWN NY ULTRAMAR CORP SAID ITS CANADIAN UNIT HAS ENTERED INTO AN 18MONTH PROCESSING AGREEMENT WITH STATOIL NORTH AMERICA INC A UNIT OF NORWEGIAN NATIONAL OIL CO UNDER THE AGREEMENT ULTRAMAR'S TWO CANADIAN REFINERIES WILL PROCESS ABOUT 22000 BARRELS A DAY OF CRUDE OIL FOR STATOIL BEGINNING TODAY MOST OF THE REFINED PRODUCT WILL BE PRODUCED AT ULTRAMAR'S HALIFAX NOVA SCOTIA REFINERY FOR THE EXPORT MARKET 9302160049 930216 JURY ACQUITS WISE SILVERADO EXCHIEF OF BANK FRAUD BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER A FEDERAL JURY ACQUITTED MICHAEL R WISE FORMER CHAIRMAN OF SILVERADO BANKING SAVINGS & LOAN ASSOCIATION OF TWO COUNTS OF BANK FRAUD CONNECTED WITH THE FAILURE OF THE COLORADO THRIFT KNOWN FOR ITS HIGHRANKING CONNECTIONS AND ITS 1 BILLION COST TO TAXPAYERS MR WISE HAD BEEN CHARGED WITH THREE COUNTS OF BANK FRAUD AFTER A LENGTHY INVESTIGATION BY A DENVER GRAND JURY BUT IT TOOK THE JURY HALF A DAY TO REJECT THE CHARGES FOLLOWING THE NINEDAY TRIAL MR WISE WAS CHARGED WITH ILLEGALLY USING 458000 OF A 1450000 LOAN FROM SILVERADO TO MAKE MORTGAGE PAYMENTS ON HIS DENVER HOME AND TO FINANCE REPAIRS ON ANOTHER HOME AFTER STATING THAT THE LOAN WAS FOR BUSINESS PURPOSES HE WAS ALSO CHARGED WITH DECEIVING GOVERNMENT REGULATORS ABOUT THE LOAN FOLLOWING TESTIMONY FROM WITNESSES THE JUDGE DROPPED A THIRD CHARGE THAT MR WISE LIED TO SILVERADO OFFICIALS ABOUT THE LOAN THE CHARGES AGAINST MR WISE DIDN'T BEGIN TO TOUCH THE ARRAY OF BAD REALESTATE TRANSACTIONS AND INSIDER DEALS THAT LED TO THE COLLAPSE OF THE 2 BILLION INSTITUTION IN 1988 THAT COLLAPSE COST US TAXPAYERS 1 BILLION NEITHER MR WISE NOR HIS TRIAL ATTRACTED THE NATIONAL ATTENTION THAT SILVERADO'S MOST FAMOUS DIRECTOR GEORGE BUSH'S SON NEIL DREW WHEN HIS ROLE IN THE THRIFT'S FAILURE WAS INVESTIGATED THE YOUNGER MR BUSH WAS DISCIPLINED BY THE OFFICE OF THRIFT SUPERVISION FOR IMPROPERLY APPROVING A LOAN TO A BUSINESS PARTNER WHILE HE WAS ON THE THRIFT'S BOARD AND FOR NOT DISCLOSING HIS RELATIONSHIP TO ANOTHER BORROWER AT THE TIME THE INDICTMENTS AGAINST MR WISE WERE HANDED UP IN SEPTEMBER PROSECUTORS SAID THE GOVERNMENT SOUGHT TO IDENTIFY SIMPLE CRIMINAL CONDUCT THAT COULD BE SUCCESSFULLY PROSECUTED RATHER THAN TO REINVENT THE ENTIRE SCHEME THAT CAUSED THE THRIFT TO FAIL THUS RISKING THE CHANCE OF CONFUSING THE JURY IN MR WISE'S TRIAL HIS DEFENSE ATTORNEYS ARGUED THAT THE EXECUTIVE USED THE LOAN PRIMARILY FOR BUSINESS PURPOSES WHICH THEY SAID WAS ALL HE WAS REQUIRED TO DO UNDER TERMS OF THE LOAN AND THAT HE NEVER LIED ABOUT HIS INTENT TO USE PART OF THE LOAN FOR PERSONAL PURPOSES ATTORNEYS IN THE US ATTORNEY'S OFFICE IN DENVER WHO PROSECUTED THE CASE LEFT THE OFFICE EARLY FRIDAY AND COULDN'T BE REACHED FOR COMMENT MR WISE'S ATTORNEY GARY LOZOW DIDN'T RETURN A PHONE CALL MR WISE COULDN'T BE REACHED FOR COMMENT THE THRIFT'S FORMER MAJORITY SHAREHOLDER W JAMES METZ PLEADED GUILTY LAST YEAR TO MISAPPLYING 9984077 OF SILVERADO FUNDS HE IS SERVING A SIXMONTH PRISON TERM EIGHTEEN MONTHS OF HIS ORIGINAL SENTENCE WERE SUSPENDED BECAUSE MR METZ AGREED TO COOPERATE WITH PROSECUTORS IN THEIR INVESTIGATION OF SILVERADO MESSRS BUSH WISE AND METZ WERE AMONG SEVERAL FORMER SILVERADO DIRECTORS OFFICERS AND ATTORNEYS FOR THE THRIFT WHO AGREED TO PAY 495 MILLION TO SETTLE A CIVIL SUIT THAT ALLEGED NEGLIGENCE AND INSIDER DEALING IN THE SILVERADO MATTER 9302160048 930216 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS YESTERDAY AND FRIDAY WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FORD MOTOR CREDIT CO 15 BILLION ISSUE OF 625 GLOBAL BONDS DUE FEB 26 1998 WAS PRICED AT 9983 TO YIELD 629 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 1 BILLION RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GROSS SPREAD IS 350 SELLING CONCESSION IS 250 AND REALLOWANCE IS 125 DELIVERY IS SCHEDULED FOR FEB 26 FLAT FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO ITT CORP 200 MILLION ISSUE OF 525 NOTES DUE FEB 15 1996 WAS PRICED AT 99775 TO YIELD 5332 A 65 BASIS POINT SPREAD ABOVE THE THREEYEAR TREASURY NOTE RATED A3 BY MOODY'S AND SINGLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC GROSS SPREAD IS 450 SELLING CONCESSION IS 250 AND REALLOWANCE IS 1875 DELIVERY IS SCHEDULED FOR FEB 22 WITH INTEREST ACCRUING FEB 15 MCDONALD'S CORP 125 MILLION ISSUE OF 675 NOTES DUE FEB 15 2003 WAS PRICED AT 9950 TO YIELD 682 THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 46 BASIS POINTS ABOVE THE TREASURY'S WHENISSUED 10YEAR NOTE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC GROSS SPREAD IS 650 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR FEB 22 FLAT FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES GOLD 1483 IS BACKED BY FREDDIE MAC GOLD 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 863 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS THE ISSUE SETTLES MARCH 30 UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL 106 MILLION UTILITIES SYSTEM REFUNDING REVENUE BONDS WERE APPARENTLY WON BY A FIRST BOSTON CORP GROUP FIRST BOSTON IS BELIEVED TO HAVE WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT APPROXIMATELY 5224 YIELDS FOR THE FORMALLY REOFFERED BONDS WERE SET AT 220 IN 1993 TO 565 IN 2011 THIS ISSUE HAS BEEN RATED DOUBLEA BY BOTH MOODY'S AND S&P WORLD BANK SUPRANATIONAL 250 MILLION CANADIAN OF 725 EUROBONDS DUE MARCH 23 1998 AT ISSUE PRICE 101165 VIA RBC DOMINION SECURITIES REOFFERED TO INVESTORS AT 9954 TO YIELD 23 BASIS POINTS ABOVE CANADIAN GOVERNMENT'S 625 NOTE DUEW FEBRUARY 1998 FEES 1875 SANWA FINANCE AEC ARUBA JAPAN PARENT 300 MILLION OF SUBORIDINATED FLOATING RATE EURONOTES WITH NO FINAL MATURITY DATE VIA SANWA INTERNATIONAL LTD INTEREST PAID AT 75 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE TO FEB 24 1998 THREEMONTH LIBOR PLUS 125 BASIS POINTS FROM 1998 TO 2003 AND THREEMONTH LIBOR PLUS 175 BASIS POINTS THEREAFTER ISSUE PRICE PAR CALL OPTION FROM FEB 24 1998 GUARANTOR ON SUBORDINATED BASIS BY SANWA BANK LTD FEES 030 BMW FINANCE NV GERMAN PARENT 200 MILLION MARKS OF FLOATING RATE EURONOTES DUE MARCH 10 2003 WITH INTEREST CAPPED AFTER TWO YEARS VIA COMMERZBANK AG INTEREAT PAID AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS PLUS 5/16 AT ISSUE PRICE PAR AFTER MARCH 10 1995 THE INTEREST RATE ON THE NOTES IS CAPPED AT 78125 ALSO 20000 WARRANTS EACH EXERCISABLE FROM SEPT 10 1995 THROUGH MARCH 10 2003 EACH WARRANT GIVES HOLDER RIGHT TO A 750 FLOOR ON INTEREST RATES ON EACH UNDERLYING 10000MARK BOND EACH WARRANT COSTS 660 MARKS WITH UNDERWRITERS' FEE OF 25 MARKS PER WARRANT GUARANTOR BAYERISCHE MOTOREN WERKE AG FEES 030 FORD MOTOR CREDIT CO US 15 BILLION OF 625 GLOBAL BONDS DUE FEB 26 1998 AT A FIXED INITIAL OFFER PRICE OF 9983 VIA LEAD UNDERWRITER GOLDMAN SACHS INTERNATIONAL YIELD 629 MARGIN 75 BASIS POINTS FEES 035 EUROPEAN INVESTMENT BANK SUPRANATIONAL 50 BILLION YEN OF 4625 EUROBONDS DUE FEB 26 2003 AT 9937 VIA NIKKO SECURITIES CO YIELD AT REOFFER PRICE 471 FEES 0325 DEUTSCHE BANK FINANCE NV GERMANY PARENT 200 MILLION POUNDS OF 725 EUROBONDS DUE DEC 18 1998 AT ISSUE PRICE 101175 VIA DEUTSCHE BANK CAPITAL MARKETS REOFFERED AT 9955 SPREAD 38 BASIS POINTS ABOVE 725 GILT DUE IN 1998 GUARANTOR DEUTSCHE BANK AG FEES 1875 HALIFAX BUILDING SOCIETY UK 100 MILLION POUNDS OF 775 EUROBONDS DUE DEC 5 1998 AT A FIXED INITIAL PRICE OF 10080 VIA JP MORGAN SECURITIES LTD YIELD 756 AT FIXED REOFFER PRICE MARGIN 73 BASIS POINTS ABOVE COMPARABLE UK GOVERNMENT BOND WILL TRADE INTERCHANGEABLY WITH 200 MILLION POUNDS OF IDENTICAL EXISTING BONDS FROM FIRST COUPON DATE DEC 3 1993 ORIGINAL ISSUE LAUNCHED BY SAMUEL MONTAGU & CO LAST NOVEMBER AT FIXED REOFFER PRICE OF 9941 FEES 0325 9302160047 930216 BUSINESS BRIEF INTERNATIONAL PAPER CO SHAREHOLDERS WIN APPEAL ON PROXY MATERIAL PROPOSAL INTERNATIONAL PAPER CO MUST ALLOW SHAREHOLDERS TO INCLUDE IN THIS YEAR'S PROXY MATERIALS A DESCRIPTION OF A JUDGE'S RULING THAT IT MISLED HOLDERS ABOUT ITS ENVIRONMENTAL RECORD THE US SECOND CIRCUIT COURT OF APPEALS HAS RULED INTERNATIONAL PAPER HAD OPPOSED A HOLDER PROPOSAL TO ADOPT THE VALDEZ PRINCIPLES NOW KNOWN AS THE CERES PRINCIPLES ON ENVIRONMENTAL RESPONSIBILITY DURING LAST YEAR'S PROXY SEASON THE APPEALS COURT AFFIRMED A LOWER COURT RULING THAT THE PROPOSAL BY TWO CHURCH GROUPS MUST BE OFFERED AGAIN THIS YEAR BECAUSE INTERNATIONAL PAPER HAD FAILED TO DISCLOSE TO HOLDERS THAT IT HAD PLEADED GUILTY TO FIVE ENVIRONMENTAL FELONIES THE COURT ALSO SAID THE CHURCH GROUPS THE PRESBYTERIAN CHURCH USA AND A CATHOLIC ORDER CALLED THE SISTERS OF SAINT DOMINIC CAN DESCRIBE THE LOWER COURT RULING IN A STATEMENT ATTACHED TO THE PROXY PROPOSAL OFFICIALS OF THE PURCHASE NY COMPANY COULDN'T BE REACHED TO COMMENT 9302160046 930216 BUSINESS BRIEF LA QUINTA MOTOR INNS INC DISSIDENT UNITHOLDERS' GROUP AGREES TO SETTLE LITIGATION LA QUINTA MOTOR INNS LP SAID ITS STRUGGLE WITH RONIN PARTNERS LP FOR CONTROL OF SAN ANTONIO TEXAS HOTEL AND RESTAURANT OWNER LA QUINTA MOTOR INNS INC WAS OVER THE TWO PARTIES AGREED TO SETTLE ALL LITIGATION REGARDING A RONIN CONSENT SOLICITATION THAT LA QUINTA SAID FAILED AND LA QUINTA AGREED TO RAISE ITS ANNUAL DISTRIBUTION TO UNITHOLDERS TO 1 A UNIT FROM 80 CENTS A UNIT AFTER THE SETTLEMENT IS FINAL RONIN A DISSIDENT UNITHOLDERS' GROUP THAT HAD ACCUSED LA QUINTA'S GENERAL PARTNER OF CHARGING EXCESSIVE MANAGEMENT FEES AND TAKING CASH FROM THE PARTNERSHIP AT THE EXPENSE OF UNITHOLDERS HAD LAUNCHED A CONSENT SOLICITATION TO DISSOLVE AND RESTRUCTURE THE PARTNERSHIP LA QUINTA ALSO SAID THE BOARD OF LA QUINTA MOTOR INNS INC HAS AUTHORIZED THE PURCHASE OF AS MUCH AS 15 OF THE OUTSTANDING UNITS OF THE PARTNERSHIP BEGINNING TOMORROW AND ENDING JUNE 30 1994 9302160045 930216 WHO'S NEWS BAROID CORP BAROID CORP HOUSTON FRANK A BENEVENTO II AND PETER M SACERDOTE WERE NAMED TO THE BOARD OF THIS OIL FIELD PRODUCTS AND SERVICE COMPANY INCREASING THE BOARD'S SIZE TO NINE MEMBERS MR BENEVENTO IS HEAD OF THE ENERGY RECOVERY FUND AN INVESTMENT FIRM MR SACERDOTE IS CHAIRMAN OF THE INVESTMENT COMMITTEE OF GOLDMAN SACHS GROUP LP BAROID ALSO NAMED EDWARD C SPATZ PRESIDENT OF BAROID ENGINEERED DRILLING SERVICES AND DBS INC UNITS OF THE COMPANY TO THE ADDITIONAL POST OF VICE PRESIDENT 9302160044 930216 PAXAR CORP TO POST SHARP PROFIT RISE FOR QUARTER YEAR BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL PEARL RIVER NY PAXAR CORP BENEFITING FROM A STRATEGY OF DEVELOPING A COMPLETE LINE OF LABELING SYSTEMS AND PRODUCTS FOR THE APPAREL INDUSTRY EXPECTS TO REPORT THAT NET INCOME MORE THAN DOUBLED IN THE FOURTH QUARTER AND ALL OF 1992 ARTHUR HERSHAFT CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT PAXAR PLANS TO REPORT FOURTHQUARTER EARNINGS OF 24 MILLION OR 22 CENTS A SHARE UP FROM 11 MILLION OR 13 CENTS A SHARE YEAREARLIER PERSHARE FIGURES WERE RESTATED FOR TWO 25 STOCK DIVIDENDS ONE IN SEPTEMBER AND THE OTHER LAST MONTH PAXAR ALSO INCREASED THE NUMBER OF SHARES OUTSTANDING THROUGH A PUBLIC OFFERING OF 14 MILLION SHARES LAST SPRING PAXAR CURRENTLY HAS ABOUT 11 MILLION SHARES OUTSTANDING THE COMPANY EXPECTS TO REPORT SALES FOR THE QUARTER ROSE ABOUT 42 TO 344 MILLION FROM 243 MILLION FOR THE YEAR PAXAR EXPECTS TO POST NET INCOME OF 83 MILLION OR 81 CENTS A SHARE UP FROM 34 MILLION OR 39 CENTS A SHARE RESTATED FOR THE STOCK DIVIDENDS SALES WERE ABOUT 49 HIGHER AT 1325 MILLION COMPARED WITH 889 MILLION MR HERSHAFT SAID TWO ACQUISITIONS SINCE SEPTEMBER 1991 ACCOUNTED FOR ABOUT HALF OF THE COMPANY'S SALES GROWTH LAST YEAR THEY WERE AMERICAN SILK LABEL A WOVENLABEL MAKER AND NATIONAL TAG A PRODUCER OF BARCODE TAGS THE EXECUTIVE ATTRIBUTED THE COMPANY'S STRONG PERFORMANCE TO THE FACT THAT ITS STRATEGY REALLY CAME TOGETHER IN 1992 HAVING MADE ABOUT FIVE ACQUISITIONS IN RECENT YEARS TO FILL OUT ITS LABELING AND SYSTEMS PRODUCT LINE PAXAR HAS STREAMLINED ITS MANUFACTURING FACILITIES AND TRAINED ITS SALES FORCE IMPROVING ITS PROFIT MARGINS AND LOWERING SOME COSTS WE'RE GETTING MORE BUSINESS AND MORE VOLUME AND WE'RE ABLE TO PRODUCE IT MORE EFFICIENTLY MR HERSHAFT SAID HE SAID PAXAR'S GOAL IS TO REACH 500 MILLION IN SALES BY 1997 THE COMPANY HOPES TO INCREASE SALES BY 15 A YEAR AND EARNINGS BY 20 A YEAR MR HERSHAFT PUTS THE WORLDWIDE MARKET FOR PAXAR'S PRODUCTS AT ABOUT 125 BILLION AND HE SAID PAXAR IS A MARKET LEADER IN MOST OF ITS PRODUCT AREAS ALTHOUGH MR HERSHAFT SAID THE ENVIRONMENT FOR APPAREL RETAILERS AND MANUFACTURERS WAS FAIRLY SOFT PAXAR'S FULL PRODUCT LINE HAS ENABLED THE COMPANY TO GAIN MARKET SHARE AND CUSTOMERS BECAUSE IT HAS MANY MORE PRODUCTS TO SELL ABOUT 65 OF PAXAR'S SALES ARE TO GARMENT MAKERS AND 35 ARE TO RETAILERS PAXAR HOPES TO CONTINUE GROWING THIS YEAR BY INCREASING ITS MARKET SHARE AND ITS BAR CODE BUSINESS MR HERSHAFT ALSO SEES FURTHER GROWTH THROUGH EXPANSION IN EUROPE AND ASIA PAXAR ALSO IS LOOKING INTO DEVELOPING A PRESENCE IN LATIN AMERICA 9302160043 930216 HOMEMORTGAGE REFINANCINGS APPROACH BOOM LEVELS FOR THIRD TIME IN 13 MONTHS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL INDUCED BY THE LOWEST INTEREST RATES IN TWO DECADES THE LEVEL OF HOMEMORTGAGE REFINANCING IS APPROACHING BOOM LEVELS FOR THE THIRD TIME IN 13 MONTHS ACCORDING TO A WEEKLY INDEX OF REFINANCING APPLICATIONS BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA REFINANCING ACTIVITY NATIONWIDE IS RUNNING SEVEN TIMES HIGHER THAN NORMAL AND HAS BEEN BUILDING EVERY WEEK SINCE THE FIRST OF THE YEAR WHEN APPLICATIONS HAD SLOWED TO LESS THAN FOUR TIMES NORMAL THE MORTGAGE BANKERS' INDEX MEASURES REFINANCING VOLUME FROM A BASE WEEKLY INDEX OF 100 WHICH IS CONSIDERED NORMAL PREVIOUS REFINANCING BOOMS HAVE BEEN TRIGGERED WHEN THE INDEX SOARED ABOVE 700 APPLICATIONS A WEEK AS OF FEB 5 THE MOST RECENT WEEK FOR WHICH DATA WERE COMPILED THE INDEX HAD SHOT UP TO 719 WE COULD BE IN THE BEGINNING OF A REFINANCING BOOM SAYS DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS' ASSOCIATION TRADE GROUP IN WASHINGTON THE ACTIVITY LEVEL IS STILL LOW COMPARED WITH THE HEIGHT OF THE TWO PREVIOUS BOOMS DURING THE FIRST ONE IN JANUARY OF LAST YEAR REFINANCINGS SHOT UP TO MORE THAN 14 TIMES THEIR NORMAL LEVEL RATES SPIKED UP AFTER THAT BUT THEN DOVE TO A 20YEAR LOW OF AN AVERAGE OF 789 ON A 30YEAR FIXEDRATE MORTGAGE THAT TRIGGERED A SECOND BOOM BEGINNING IN JULY AND REFINANCINGS PEAKED AT NEARLY 14 TIMES NORMAL BEFORE TAPERING OFF IN NOVEMBER AS RATES CLIMBED AGAIN UNDER MARKET FEARS OF A HIGHSPENDING DEMOCRATIC ADMINISTRATION IF THOSE EXPERIENCES ARE ANY INDICATION THE LATEST WAVE OF REFINANCINGS SHOULD CONTINUE TO GROW SO LONG AS THE MORTGAGE RATES STAY AT CURRENT LEVELS THAT ONCE AGAIN HAVE SUNK BELOW 8 ALTHOUGH MANY HOMEOWNERS HAVE REFINANCED ALREADY THE VAST MAJORITY HAVE NOT JONATHAN E GRAY A MORTGAGE ANALYST FOR SANFORD C BERNSTEIN & CO IN NEW YORK CALCULATES THERE IS 19 TRILLION IN FIXEDRATE MORTGAGES OUTSTANDING AND THAT VIRTUALLY ALL OF IT YIELDS 85 OR MORE MR GRAY ESTIMATES THAT AN 8 RATE WOULD GENERATE 165 BILLION IN REFINANCING VOLUME AND THAT ANOTHER 165 BILLION WOULD BE GENERATED BY EACH HALFPERCENTAGE POINT DROP IN THE MORTGAGE RATE BUOYED BY OPTIMISM IN THE FINANCIAL MARKETS FOR PRESIDENT CLINTON'S ABILITY TO SIGNIFICANTLY CUT THE BUDGET DEFICIT WITHOUT ADDING GREATLY TO INFLATION MORTGAGE RATES HAVE DROPPED FAIRLY STEADILY FROM AN AVERAGE OF 854 IN MIDNOVEMBER TO ABOUT 786 ON FRIDAY THE LOWEST IN 20 YEARS ACCORDING TO SURVEYS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM WITH INFLATION EXPECTED TO REMAIN IN CHECK FOR THE FORESEEABLE FUTURE BECAUSE THE ECONOMIC RECOVERY REMAINS MODEST MORE BULLISH ANALYSTS PREDICT THE RATES COULD DIP BELOW 7 THIS YEAR EACH TIME THE RATE TICKS DOWN EVEN AN EIGHTH OF A POINT IT UNLEASHES A FLOOD OF REFINANCING MR GRAY SAYS ALREADY MORTGAGE BANKERS REPORT A HUGE SURGE IN ACTIVITY PASADENA CALIFBASED COUNTRYWIDE CREDIT INDUSTRIES INC THE US'S BIGGEST MORTGAGE BANKER FOR INSTANCE SAYS ITS NUMBER OF HOURLY TELEPHONE INQUIRIES FROM HOMEOWNERS ABOUT REFINANCING HAS TRIPLED TO 150 IN RECENT DAYS WE'RE HEARING A LOT OF ACTIVITY FROM A LOT OF OUR COMPANIES ADDS MR LEREAH OF THE MORTGAGE BANKERS' ASSOCIATION BUT SOME ANALYSTS REMAIN SKEPTICAL THAT THIS YEAR'S REFINANCING WILL RIVAL THAT OF 1992 WHEN AN ESTIMATED 850 BILLION IN VOLUME BROKE ALL MORTGAGE ORIGINATION RECORDS AND SURPASSED BY 45 THE 1991 VOLUME ACCORDING TO GOVERNMENT ESTIMATES ACCORDING TO AN ANALYSIS BY HSH ASSOCIATES MANY HOMEOWNERS WHO WOULD LIKE TO REFINANCE CANNOT DO SO BECAUSE THEY ARE IN AN EQUITY TRAP MEANING THEIR HOME VALUES HAVE DEPRECIATED TO THE EXTENT THEY HAVE LOST THE EQUITY NEEDED TO SATISFY LENDERS' QUALIFICATION DEMANDS FURTHERMORE THERE IS STILL THE POSSIBILITY THAT THE ECONOMY MIGHT HEAT UP FASTER THAN ANTICIPATED OR THAT THE NEW ADMINISTRATION WILL SET FORTH AN INFLATIONARY SPENDING PROGRAM THAT WOULD SHOOT RATES BACK UP BUT FOR NOW HOMEOWNERS HAVE A RARE OPPORTUNITY TO ONCE AGAIN TRY AND CASH IN POSSIBLY FOR THE LAST TIME AS MR LEREAH SAYS HERE'S THEIR THIRD CHANCE THREE STRIKES AND THEY'RE OUT 9302160042 930216 KIMBERLYCLARK OFFERS BONDS DALLAS TEXAS KIMBERLYCLARK CORP ANNOUNCED A PUBLIC OFFERING OF 40 MILLION OF 620 TAXEXEMPT BONDS DUE FEB 1 2023 THE COMPANY SAID THE BONDS WERE PRICED AT 99 OF THE PRINCIPAL AMOUNT TO YIELD 627 GOLDMAN SACHS & CO IS THE UNDERWRITER FOR THE OFFERING KIMBERLYCLARK SAID THE BONDS WILL BE ISSUED BY THE INDUSTRIAL DEVELOPMENT BOARD OF LOUDON COUNTY TENN THE COMPANY SAID NET PROCEEDS FROM THE OFFERING WILL BE USED TO FINANCE A PORTION OF THE EXPANSION OF KIMBERLYCLARK'S SERVICE AND INDUSTRIAL TISSUE PRODUCTS FACILITY THERE KIMBERLYCLARK MAKES HOUSEHOLD PERSONALCARE AND HEALTHCARE PRODUCTS NEWSPRINT AND OTHER SPECIALTY PAPERS 9302160041 930216 BUSINESS BRIEF TELECOM CORP FIRM PURCHASES AN OPTION TO BUY 276 OF THE STOCK TELECOM SAID IT HAD RECEIVED A COPY OF A FILING MADE WITH WITH THE SECURITIES AND EXCHANGE COMMISSION IN IT WMG INVESTMENTS OWNED BY WILLIAM MICHAEL GILLEY OF WINSTONSALEM NC SAID IT INTENDED TO SEEK ONE OR MORE NOMINEES TO TELECOM'S BOARD AND WAS ACQUIRING THE STAKE IN THE COMPANY AS AN INVESTMENT THE OPTION TO BUY 1020619 SHARES AT 294 A SHARE EXPIRES FEB 28 BUT CAN BE EXTENDED UNTIL APRIL 15 ACCORDING TO THE DALLAS HOLDING COMPANY LAST SEPTEMBER THOMAS MERRILL GAUBERT RESIGNED AS TELECOM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER PLEADING INNOCENT TO FEDERAL CHARGES OF CONSPIRING TO DEFRAUD THE FEDERAL RESOLUTION TRUST CORP IN HIS PERSONAL BANKRUPTCY PROCEEDINGS HE WAS SUCCEEDED BY LAWRENCE W SCHUMANN WHO ALSO CONTINUED AS PRESIDENT AND CHIEF OPERATING OFFICER 9302160040 930216 INTERNATIONAL BRIEF FOSTER'S BREWING GROUP LTD OPERATING PROFIT SPURTED IN 1ST HALF ENDED DEC31 FOSTER'S BREWING GROUP LTD OF AUSTRALIA REPORTED THAT OPERATING PROFIT AFTER TAX MORE THAN DOUBLED TO 1736 MILLION AUSTRALIAN DOLLARS US1173 MILLION IN THE FISCAL FIRST HALF ENDED DEC 31 FROM A769 MILLION A YEAR EARLIER IN THE FISCAL YEAR ENDED JUNE 30 FOSTER'S REPORTED A LOSS OF A9508 MILLION CITING ASSET WRITEDOWNS OF A119 BILLION DIRECTORS SAID THE FIRSTHALF RESULT INDICATED A STRONG PERFORMANCE AT THE BEGINNING OF A PERIOD OF CONSOLIDATION FOR THE COMPANY AS IT EMERGED FROM ITS RESTRUCTURING PROCESS THEY SAID THAT FOSTER'S HAS REDUCED ITS DEBT TO A28 BILLION AT DEC 31 FROM A41 BILLION AT JUNE 30 DIRECTORS ALSO SAID THEY EXPECT TO PAY A SECONDHALF DIVIDEND OF 325 CENTS A SHARE BRINGING THE FULLYEAR DIVIDEND TO THE PREVIOUSLY FORECAST SIX CENTS A SHARE DOUBLE THE YEAR EARLIER'S 9302160039 930216 BUSINESS BRIEF DOMTAR INC FIRM SAYS IT CAN RECYCLE BOXES INTO QUALITY PAPERS DOMTAR INC SAID IT DEVELOPED A PROCESS TO RECYCLE CORRUGATED CARDBOARD BOXES INTO HIGHQUALITY PAPERS AND PLANS TO INVEST 65 MILLION CANADIAN DOLLARS US52 MILLION TO APPLY THE TECHNOLOGY COMMERCIALLY AT ITS CORNWALL ONT FINEPAPERS MILL THE MONTREALBASED FORESTPRODUCTS COMPANY SAID THAT COMPARED WITH CONVENTIONAL DEINKING OF USED PAPER THE NEW PROCESS YIELDS FAR LESS SLUDGE WASTE PRODUCES FIBERS THAT ARE TWICE AS STRONG AND RESULTS IN A HIGHER DEGREE OF BRIGHTNESS DOMTAR ESTIMATED ITS PAPER COSTS WILL BE REDUCED BY C100 TO C125 A TON USING THE NEW METHOD IN ADDITION TO THE CORNWALL OPERATION WHICH IS EXPECTED TO BEGIN IN LATE 1994 OR 1995 THE COMPANY IS STUDYING A POSSIBLE C165 MILLION INVESTMENT TO USE THE TECHNOLOGY AT ITS WINDSOR QUEBEC COMMUNICATIONSPAPERS MILL 9302160038 930216 ADOLPH COORS LOSS NARROWED SLIGHTLY IN THE FOURTH PERIOD GOLDEN COLO ADOLPH COORS CO SAID ITS FOURTHQUARTER NET LOSS NARROWED SLIGHTLY WHILE EARNINGS FROM ITS BEER BUSINESS MORE THAN DOUBLED FOR THE YEAR COORS THE US'S THIRDLARGEST BREWER REPORTED A NET LOSS OF 227 MILLION OR 60 CENTS A SHARE COMPARED WITH A NET LOSS OF 228 MILLION OR 61 CENTS A SHARE IN THE 12WEEK FOURTH QUARTER ENDED DEC 27 THE LOSS FROM CONTINUING OPERATIONS OR ITS COORS BREWING CO OPERATIONS IN THE LATEST QUARTER WAS 35 MILLION COMPARED WITH A LOSS FROM CONTINUING OPERATIONS A YEAR AGO OF 222 MILLION COORS SPUN OFF ITS TECHNOLOGY BUSINESSES IN DECEMBER FORMING ACX TECHNOLOGIES INC AND REPORTED RESULTS FROM THAT COMPANY AS DISCONTINUED OPERATIONS THE RESULTS FOR THE LATEST FOURTH QUARTER INCLUDED A LOSS OF 192 MILLION FROM DISCONTINUED OPERATIONS COMPARED WITH A LOSS FROM DISCONTINUED OPERATIONS IN THE YEARAGO QUARTER OF 649000 SALES ROSE 3 TO 4192 MILLION FROM 4066 MILLION FOR THE YEAR THE COMPANY REPORTED A NET LOSS OF 2 MILLION OR FIVE CENTS A SHARE COMPARED WITH NET INCOME OF 255 MILLION OR 68 CENTS A SHARE IN 1991 SALES ROSE 1 TO 191 BILLION FROM 189 BILLION INCOME FROM CONTINUING OPERATIONS OR ITS BEER BUSINESS ROSE TO 357 MILLION FROM 155 MILLION THE 1992 NET LOSS INCLUDED A LOSS OF 294 MILLION FOR DISCONTINUED OPERATIONS A CHARGE FOR POSTRETIREMENT BENEFITS ACCOUNTING OF 388 MILLION AND A GAIN FROM A CHANGE IN INCOME TAX ACCOUNTING OF 305 MILLION THE 1991 RESULTS INCLUDED A GAIN FROM DISCONTINUED OPERATIONS OF 84 MILLION AND A PRETAX CHARGE OF 296 MILLION FOR A WRITEDOWN OF ITS ENERGY BUSINESS SEPARATELY THE COMPANY'S COORS UNIT SAID IT WAS EXPANDING DISTRIBUTION OF ITS ZIMA CLEARMALT A MALT COOLER TO 40 MARKETS COVERING 30 OF THE US IN THE FIRST PHASE OF A NATIONAL PLAN COORS SAID THE CLEAR COOLER WAS INTRODUCED IN THREE TEST MARKETS LAST FALL AND SALES HAVE BEEN SIGNIFICANTLY ABOVE PLAN THE COMPANY DIDN'T GIVE SALES FIGURES 9302160036 930216 BUSINESS BRIEF MIP PROPERTIES INC CREDIT AGREEMENT SIGNED LITIGATION WITH BANK ENDED MIP PROPERTIES INC SANTA MONICA CALIF SAID IT SIGNED A CREDIT AGREEMENT WITH BANK OF AMERICA THAT WILL ALLOW IT TO RETIRE OR REFINANCE THE DEBT OVER THE NEXT THREE YEARS THE REAL ESTATE INVESTMENT TRUST SAID THE BALANCE OUTSTANDING UNDER THE PACT IS 24 MILLION AND ADDED THAT LITIGATION BETWEEN MIP AND THE BANK HAS BEEN DISMISSED ALSO MIP REPORTED A FOURTHQUARTER LOSS OF 548000 OR SIX CENTS A SHARE COMPARED WITH A LOSS OF 764500 OR EIGHT CENTS A SHARE A YEAR EARLIER FOR THE YEAR IT POSTED A LOSS OF 14 MILLION OR 156 A SHARE COMPARED WITH A LOSS OF 227 MILLION OR 252 A SHARE FOR 1991 THE 1992 LOSS INCLUDES AN EXTRAORDINARY GAIN OF 1 MILLION FROM THE FORECLOSURE BY A THIRDPARTY LENDER ON A FACILITY IN CARLSBAD CALIF SEPARATELY MIP SAID ALAN P VANDEVERT SENIOR VICE PRESIDENT SECRETARY AND GENERAL COUNSEL WAS ELECTED TO THE BOARD FILLING A VACANCY 9302160035 930216 HEADS IN THE CLOUDS WEATHER JUNKIES LOVE STORMS GADGETS THEY GROUSE AT TV FORECASTERS TRACK HUGE' TORNADOES WHILE WIVES GO TO MALLS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL WAYNE NJ IT'S A DARK AND STORMY NIGHT AND CHRIS STANDAL IS FINALLY IN HIS ELEMENT DEEP IN HIS BASEMENT MR STANDAL INTENTLY GAUGES WIND SPEED ON HIS ANENOMOMETER FALLING PRESSURE ON HIS BAROMETER AND DENSE HUMIDITY ON HIS HYGROMETER MY COMPUTER CAN GIVE ME COLOR RADAR SATELLITE IMAGERY AND A BIG PICTURE OF THE FRONT AS IT MOVES THROUGH THE REGION CHIRPS MR STANDAL HIS FACE LIT BY THE FLASHING SCREENS THIS MAN MAY BE A NONDESCRIPT 41YEAROLD CREDIT MANAGER BY DAY BUT BY NIGHT HE WRESTLES WITH THE GODS AS A FULLBLOWN WEATHER FANATICSPINNING DIALS IN A BASEMENT OPERATIONS CENTER FILLED WITH THOUSANDS OF DOLLARS OF WEATHER TRACKING EQUIPMENT INDEED THE COMPUTER AGE HAS BROUGHT A NEW LEVEL OF SOPHISTICATION TO A GROWING BAND OF WEATHER HOBBYISTS WEATHER IS NOT SOMETHING TO BE TRIFLED WITH WARNS SCOTT GORDON A 35YEAROLD TAX ATTORNEY AND MEMBER OF THE NORTH JERSEY WEATHER OBSERVERS ONE OF MANY SUCH GROUPS THAT HAVE SPRUNG UP SINCE THE LATE 1980S LIKE ANY OBSESSIVES WEATHER LOVERS HAVE THEIR SPECIAL YENS SOME GO FOR THE GADGETRY CREATING THEIR OWN DATA WHILE OTHERS TAP INTO INFORMATION BANKS THROUGH ONLINE SERVICES MOST ARE AWED BY NATURE'S POWER A FEW SAY THEY JUST LIKE THE LAST WORD WHEN SOMEONE ASKS NICE WEATHER HUH TODAY'S WEATHER JUNKIES HAVE HONORABLE FOREFATHERS INCLUDING BENJAMIN FRANKLIN WHO PROCLAIMED SOME PEOPLE ARE WEATHERWISE BUT MOST ARE OTHERWISE THOMAS JEFFERSON WOULD HAVE SNEERED AT MEASURING THE RAINFALL IN A BUCKET AFTER HIS PRESIDENCY MR JEFFERSON KEPT EXTENSIVE TEMPERATURE AND PRECIPITATION RECORDS AT MONTICELLO BUT THOSE WERE SIMPLE HAPPY TIMES FOR WEATHER ENTHUSIASTS LONG BEFORE THE INVENTION OF THE NIGHTLY NEWSCAST THESE TV STATIONS GET A BUNCH OF PRETTY FACES THEY'VE TAKEN ONE WEATHER COURSE AND NOW THEY TRY TO TELL US WHAT IS GOING TO HAPPEN OUT THERE BELLOWS MR GORDON SPREADING HIS ARMS TOWARD AN OPEN WINDOW THEY JOKE WITH EACH OTHER ABOUT CLOUDS AND WIND EVER GET ANGRY AT A BOTCHED LOCAL FORECAST NOW YOU HAVE A BATTALION TO BACK YOU UP WEATHER FANATICS INCREASINGLY ARMED WITH EQUIPMENT THAT GETS THEM THE SAME INFORMATION AS THE PROS HAVE DECLARED WAR ON FAULTY FORECASTING AFTER A DECEMBER NOR'EASTER CAUGHT MANY NEW YORK AREA RESIDENTS BY SURPRISE A GROUP OF NORTH JERSEY WEATHER OBSERVERS FILED A COMPLAINT WITH THE FEDERAL COMMUNICATIONS COMMISSION CHARGING THAT NEW YORK CITY'S FOX TV AFFILIATE UNDERESTIMATED THE STORM WHICH CAUSED EXTENSIVE FLOODING AND AIRED ONLY A FEW WARNING REPORTS A SPOKESMAN FOR FOX'S WNYWTV SAYS THE CHARGES ARE FRIVOLOUS AND CAN HAVE NO IMPACT ON THE RENEWAL OF THE STATION'S LICENSE AN FCC OFFICIAL CONCURS THAT THE COMMISSION DOESN'T REQUIRE GOOD WEATHER INFORMATION WE PRETTY MUCH LET THE STATIONS USE THEIR OWN JUDGMENT NOT TO BE IGNORED THE WEATHER OBSERVERS LAUNCHED A COUNTEROFFENSIVE LAST MONTH WHEN 100 OR SO ENTHUSIASTS BEGAN MONITORING WEATHER REPORTS OF SEVEN NEW YORKAREA STATIONS TO COMPARE FORECASTS TO ACTUAL RESULTS RATINGS WILL BE OUT IN APRIL NEWS RELEASES AND MEDIA EVENTS ARE PLANNED SINCE THERE IS MORE DATA OUT THERE IT'S MORE LIKELY YOU'LL FIND CRITICS SAYS FRANK LEPORE OF THE NATIONAL WEATHER SERVICE AND INFORMATION IS ONLY GOING TO BECOME MORE AVAILABLE TO MORE PEOPLE AS TECHNOLOGY IMPROVES AND THE COST OF EQUIPMENT DECLINES GROWTH OF THE WEATHER UNDERGROUND HAS SPAWNED A METEOROLOGICALINDUSTRIAL COMPLEX OF EQUIPMENT MAKERS ONLINE COMPUTER SERVICES AND MAGAZINES THE LATEST ADVANCE EQUIPMENT AND SOFTWARE THAT PLUG A PC INTO SATELLITE TRANSMISSIONS FOR 1400 ALSO HOT BAROMETER WRISTWATCHES AND A 150 A MINUTE ONLINE SERVICE WITH REALTIME WEATHER DATA AND FOR REAL AFICIONADOS THERE IS A SELECTION OF BOOTLEG VIDEOS FROM STORMCHASER MARTY FEELY EVERY MAY AND JUNE THE 39YEAROLD FROM SAN JOSE CALIF CHASES TORNADOES AND THUNDERSTORMS THROUGH THE SOUTHWEST IT'S HARD FOR ME TO HOLD DOWN ANY WORK BECAUSE I HAVE TO BE IN OKLAHOMA AND TEXAS FOR THOSE TWO MONTHS MURMURS MR FEELY WHO SAYS SOME OF HIS FINEST FILMING WAS OF A TWISTER LAST MAY NEAR FORT STOCKTON TEXAS IT KEPT COMING AT US JUST HUGE WITH WIND BLOWING EVERYTHING EVERYWHERE HE RECALLS AND I JUST STARED AT IT VIDEOTAPING IT AS IT GOT CLOSER AND CLOSER FINALLY THE GUY DRIVING THAT DAY FORCED ME INTO THE CAR AND WE JUST GOT AWAY A MONTH LATER THOUGH DISASTER STRUCK NEAR TATUM NM WHERE MR FEELY SAYS TENNISBALLSIZED HAILSTONES PUMMELED HIS 1976 FORD MAVERICK INTO JUNK STORM CHASING HE SAYS IS ON HOLD UNTIL HE CAN AFFORD A NEW CAR WHETHER TORNADO TRACKER OR BASEMENT HACKER ENTHUSIASTS NOW HAVE AN UMBRELLA ORGANIZATION THE 2000MEMBER AMERICAN ASSOCIATION OF WEATHER OBSERVERS BASED IN BELVIDERE ILL PUBLISHES THE AMERICAN WEATHER OBSERVER AND ACTS AS A CLEARING HOUSE FOR WEATHER FIENDS STEVE STEINKE 46 WHO RUNS THE ORGANIZATION SAYS HE DISCOVERED HIS LOVE OF STORMS AS A CHILD INSTEAD OF COWERING UNDER THE SHEETS HE'D RUN TO THE WINDOW SINCE GETTING MARRIED ONE FEBRUARY DAY IN 1972 32 DEGREES WET SNOW HE'S HAD TO BALANCE HIS PASSIONS I'M JUST MARRIED TO WEATHER AND I'M MARRIED THAT CAN PRESENT SOME PROBLEMS OF THEIR OWN AS ANY WEATHER WIDOW WILL ATTEST PLEASING A CLOUD LOVER IS LIKE CATCHING LIGHTNING IN A BOTTLE I ADMIT I'M A WEATHER NUT SAYS MR STANDAL WHOSE WIFE COULDN'T AGREE MORE LIKE MANY WEATHER ENTHUSIASTS HE LONGS FOR THE BIG ONE OH WHAT WE'D GIVE FOR A BIG SNOWSTORM HE SAYS COZY IN HIS WEATHER WATCHERS' SWEATSHIRT WITH A LIGHTNING BOLT ACROSS THE CHEST WHEN THE SNOW PILES UP AND TRAFFIC COMES TO A STANDSTILL NOW THAT WOULD BE GREAT MR STANDAL'S WIFE ROBERTA FOCUSED MORE ON EARTHLY PURSUITS SAYS TERSELY THAT HER HUSBAND'S MOOD CAN SWING WITH THE WEATHER IF NOTHING'S HAPPENING HE CAN GET IN A REALLY BAD MOOD WHEN LAST MONTH'S GATHERING OF LOCAL WEATHER OBSERVERS ARRIVED AT HER HOUSE SHE FLED FOR THE CONTROLLEDATMOSPHERE OF A NEARBY MALL I BETTER NOT SAY ANYTHING MRS STANDAL SAYS RUSHING FROM THE HOUSE BUT YOU KNOW HE IS PRETTY INTO THE WEATHER 9302160034 930216 BUSINESS BRIEF WEST COAST BANCORP FOURTHQUARTER NET LOSS OF 69 MILLION IS REPORTED WEST COAST BANCORP REPORTED A FOURTHQUARTER NET LOSS OF 69 MILLION OR 75 CENTS A SHARE REFLECTING LOAN LOSSES AND A RESTRUCTURING CHARGE OF 47 MILLION OR 52 CENTS A SHARE A YEAR EARLIER THE NEWPORT BEACH CALIF BANK HOLDING COMPANY HAD A NET LOSS OF 1 MILLION OR 11 CENTS A SHARE FOR THE YEAR ENDED DEC 31 WEST COAST HAD A LOSS OF 7 MILLION OR 76 CENTS A SHARE COMPARED WITH A LOSS OF 17 MILLION OR 19 CENTS A SHARE A YEAR EARLIER 9302160033 930216 TECHNOLOGY BRIEF WORDSTAR INTERNATIONAL INC WIDER SECONDPERIOD LOSS REFLECTS A DELAY IN MERGER WORDSTAR INTERNATIONAL INC SAID A DELAY IN COMPLETING A MERGER WITH ZSOFT CORP CAUSED IT TO POST A WIDENED FISCAL SECONDQUARTER LOSS OF 48 MILLION OR 30 CENTS A SHARE THAT COMPARES WITH 33 MILLION OR 22 CENTS A SHARE A YEAR EARLIER THE BUSINESS SOFTWARE CONCERN IN NOVATO CALIF SAID ITS MERGER WITH ZSOFT OF MARIETTA GA WAS FINALIZED IN JANUARY SEVERAL MONTHS LATER THAN EXPECTED AND TOO LATE FOR ITS REVENUE TO BE COUNTED WITH WORDSTAR'S OPERATIONS THERE WAS ALSO A ONETIME CHARGE OF 863000 FOR LAYING OFF 26 OF THE COMPANY'S INTERNATIONAL EMPLOYEES IN THE SECOND QUARTER REVENUE FOR THE PERIOD ENDED DEC 31 FELL 40 TO 64 MILLION FROM 106 MILLION REFLECTING ADVERSE CURRENCY CHANGES A CONTINUING SLIDE IN MSDOS WORD PROCESSING SALES AND FALLING PRICES 9302160032 930216 GM WILL REPAIR HEAD GASKETS ON ENGINES WORK ON QUAD 4S MAY COST UP TO 22 MILLION IN BID TO PLACATE CUSTOMERS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IN A MOVE TO IMPROVE RELATIONS WITH UNHAPPY CUSTOMERS SAID IT WILL FIX LEAKY HEAD GASKETS ON AS MANY AS HALF A MILLION QUAD 4 ENGINES GM SAID YESTERDAY IT'S TELLING CUSTOMERS IT WILL EXTEND THE REGULAR WARRANTY AND PAY FOR REPAIRS TO LEAKY QUAD 4 ENGINES IN A PROGRAM THAT COULD COST THE AUTO MAKER UP TO 22 MILLION THAT'S A BLACK EYE FOR AN ENGINE GM ONCE PROMOTED AS A SYMBOL OF ITS ADVANCED TECHNOLOGY BUT THE NO 1 AUTO MAKER CLEARLY EXPECTS THAT BITING THIS BULLET WILL HELP PERSUADE CONSUMERS TO FORGIVE PAST QUALITY LAPSES IT'S A STRATEGY FINDING FAVOR IN DETROIT AS ALL OF THE BIG THREE AUTO MAKERS TRY TO CAPITALIZE ON SOARING PRICES FOR JAPANESE CARS AND A MOOD AMONG SOME CONSUMERS THAT IT'S TIME TO AT LEAST TRY AMERICAN AUTO COMPANIES ARE FIGHTING THEIR WARS IN THE AREA OF CUSTOMER SATISFACTION SAID JOHN OCHS A FORD MOTOR CO SPOKESMAN WE WANT TO KEEP CUSTOMERS AS WELL AS GET NEW ONES THAT'S WHY FORD LAST SEPTEMBER BEGAN MAILING LETTERS TO THREE MILLION OWNERS OF 19851991 F SERIES PICKUP TRUCKS THAT ARE PRONE TO PEELING PAINT HE SAID FORD HAS SINCE PAID FOR AS MUCH AS 100 OF THE PAINT WORK ON AFFECTED VEHICLES IN THE CASE OF THE QUAD 4 GASKET PROBLEMS GM SENT OUT LETTERS TO AFFECTED CUSTOMERS LAST MONTH IN ADDITION TO PAYING FOR FUTURE REPAIRS GM SAID IT WILL REIMBURSE CUSTOMERS WHO ALREADY HAVE HAD THE GASKET WHICH SITS BETWEEN THE ENGINE BLOCK AND THE CYLINDER HEAD REPLACED AT THEIR OWN EXPENSE GM IS DOING THIS IN THE INTEREST OF CUSTOMER SATISFACTION THE COMPANY SAID SUCH EXTENDED WARRANTY OFFERS HAVE BEEN COMMON AMONG JAPANESE AUTO MAKERS WHICH QUIETLY USED THEM TO TAKE CARE OF PROBLEMS THAT OTHERWISE WOULD HAVE UNDERMINED THEIR IMAGE FOR HIGH QUALITY GM HOWEVER USED TO PLAY HARDBALL WITH DISGRUNTLED CUSTOMERS RATHER THAN OWN UP TO A COSTLY DEFECT IN A KEY PRODUCT GM KNEW FOR YEARS THAT IT HAD A PROBLEM WITH SUDDEN STALLING IN AS MANY AS 15 MILLION 19861987 OLDSMOBILES PONTIACS AND BUICKS FEDERAL REGULATORS LINKED SOME 300 ACCIDENTS AND ONE DEATH TO THE PROBLEM BUT GM AGREED TO EXTEND THE WARRANTIES ON THE VEHICLES IN DECEMBER 1991 ONLY AFTER PRESSURE FROM THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION BUT GM EXECUTIVES NOW SEEM TO BE TAKING A DIFFERENT APPROACH INSPIRED IN PART BY THE SUCCESS OF THE COMPANY'S SATURN CORP UNIT TWO YEARS AGO SATURN DISCOVERED THAT 1100 SATURN CARS HAD BEEN SHIPPED TO CONSUMERS WITH MISFORMULATED ANTIFREEZE THAT THREATENED TO ROT OUT THE COOLING SYSTEM SATURN'S SOLUTION GIVE THE CUSTOMERS BRAND NEW CARS THE RESPONSE CEMENTED SATURN'S IMAGE FOR EXTRAORDINARY CUSTOMER SERVICE AND HELPED PROPEL A SURGE IN DEMAND IN THE FOURTH QUARTER OF 1992 GM AUTHORIZED ITS DEALERS TO FIX PAINT PROBLEMS THAT STEMMED FROM THE MANUFACTURING PROCESS ON VEHICLES UP TO SIX YEARS OLD IN THE SAME QUARTER GM INCREASED ITS RESERVES BY AN UNSPECIFIED AMOUNT TO COVER HIGHER WARRANTY COSTS RESULTING IN A WIDER FOURTHQUARTER LOSS FOR ITS NORTH AMERICAN OPERATIONS IN THE CASE OF THE QUAD 4 THE DEFECTIVE HEAD GASKETS AREN'T BEING BLAMED FOR ANY ACCIDENTS ACCORDING TO GM HOWEVER THE COOLANT LEAK IF UNCHECKED COULD EVENTUALLY RUIN THE ENGINE THE DEFECTIVE ENGINES WERE AVAILABLE IN CHEVROLET BERETTA GTZS PONTIAC GRAND AMS AND GRAND PRIXS OLDSMOBILE CALAIS AND CUTLASS SUPREMES AND BUICK SKYLARKS THE ENGINE IS CALLED THE QUAD 4 BECAUSE IT HAS FOUR CYLINDERS AND FOUR VALVES PER CYLINDER THAT INCREASE THE FLOW OF AIR AND FUEL AND THUS IMPROVE EFFICIENCY GM IS OFFERING TO FIX GASKETS FREE OF CHARGE ON ALL 19871991 QUAD 4S FOR UP TO SIX YEARS OR 60000 MILES UP FROM THE ORIGINAL WARRANTY OF THREE YEARS OR 50000 MILES GM SAID IT WILL ALSO CONSIDER PAYING FOR GASKET REPAIRS ON ENGINES WITH MORE THAN 60000 MILES ON A CASEBYCASE BASIS GM ESTIMATES THAT ABOUT 8 OF THE HALF MILLION QUAD 4 ENGINES SOLD FROM 1987 TO 1991 WILL DEVELOP LEAKY HEAD GASKETS AT 550 PER CAR THAT WOULD PUT THE COST OF THE REPAIR CAMPAIGN AT 22 MILLION BEGINNING WITH THE 1992 MODELS GM SWITCHED TO A NEW HEAD GASKET IN THE QUAD 4 GM ALSO SWITCHED TO A NEW MANUFACTURING PROCEDURE TO IMPROVE HEAD BOLT TIGHTENING WE'RE FINDING THESE CHANGES ARE DOUBLING THE LIFE OF THE HEAD GASKET SAID A GM SPOKESWOMAN 9302160031 930216 WHO'S NEWS LEUKEMIA SOCIETY OF AMERICA LEUKEMIA SOCIETY OF AMERICA NEW YORK DWAYNE HOWELL EXECUTIVE VICE PRESIDENT OF THE NATIONAL MULTIPLE SCLEROSIS SOCIETY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS NONPROFIT GROUP EFFECTIVE MARCH 1 MR HOWELL 48 YEARS OLD SUCCEEDS PETER N CAKRIDAS 64 WHO RESIGNED UNEXPECTEDLY AFTER A 28YEAR CAREER AT THE SOCIETY 9302160030 930216 DOW JONES EQUITY MARKET INDEX NEW YORK TWO CHANGES ARE BEING MADE IN THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY NABORS INDUSTRIES INC IS BEING ADDED TO THE OIL DRILLING INDUSTRY GROUP AND ENGELHARD CORP IS BEING MOVED TO THE SPECIALTY CHEMICALS INDUSTRY GROUP FROM THE DIVERSIFIED INDUSTRIAL GROUP 9302160028 930216 DIVIDEND NEWS FOOTHILL GROUP INC FOOTHILL GROUP INC LOS ANGELES SAID ITS BOARD REINSTATED A QUARTERLY CASH DIVIDEND ON ITS CLASS A COMMON STOCK OF THREE CENTS A SHARE PAYABLE APRIL 20 TO STOCK OF RECORD MARCH 20 THE FINANCIAL SERVICES COMPANY LINKED THE MOVE TO ITS RECENT EFFORTS TO PAY DOWN DEBT AS WELL AS TO ITS IMPROVED EARNINGS 9302160027 930216 BUSINESS BRIEF LAFARGE COPPEE SA CEMENT MAKER'S REVENUE DECLINED 38 DURING 1992 FRENCH CEMENT MAKER LAFARGE COPPEE SA PARIS POSTED A 38 DROP IN CONSOLIDATED REVENUE IN 1992 TO 3045 BILLION FRANCS 543 BILLION FROM 3165 BILLION FRANCS A YEAR EARLIER THE FIGURES CONTAINED IN A ROUTINE FILING IN THE GOVERNMENT'S BULLETIN OF MANDATORY LEGAL ANNOUNCEMENTS KNOWN BY ITS FRENCH ACRONYM BALO DIDN'T CONTAIN SUPPLEMENTARY INFORMATION LAFARGE CHAIRMAN BERTRAND COLLOMB HAD SAID PREVIOUSLY IN AN INTERVIEW THAT CEMENT SALES HAD BEEN ROUGHLY FLAT IN 1992 9302160026 930216 WHO'S NEWS BOLAR PHARMACEUTICAL CO BOLAR PHARMACEUTICAL CO COPIAGUE NY NICHOLAS A LABELLA 37 YEARS OLD WAS NAMED VICE PRESIDENT DIRECTOR OF RESEARCH AND DEVELOPMENT AT THE GENERIC PHARMACEUTICAL COMPANY PREVIOUSLY DIRECTOR OF REGULATORY AFFAIRS HE SUCCEEDS MELVIN SHAROKY 42 WHO RECENTLY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER 9302160025 930216 FINANCING BUSINESS USX CORP USX CORP PITTSBURGH SAID EACH OF THE SIX MILLION SHARES OF 65 CUMULATIVE CONVERTIBLE PREFERRED STOCK IT WILL OFFER AT 50 A SHARE WILL BE CONVERTIBLE INTO 1084 SHARES OF USXUS STEEL GROUP COMMON STOCK AT A PRICE OF 46125 USX SOLD THE SHARES TO A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS & CO THE GROUP WILL SELL THE SHARES TO THE PUBLIC 9302160024 930216 BUSINESS BRIEF CAMPBELL SOUP TO CLOSE TWO PLANTS SAYS IT WILL SELL NONSTRATEGIC' LINES NEW YORK CAMPBELL SOUP CO ANNOUNCED A 300 MILLION CHARGE AGAINST SECONDQUARTER EARNINGS TO CLOSE TWO FROZENFOOD PLANTS AND IT SET PLANS TO SELL SEVERAL NONSTRATEGIC BUSINESSES IN THE NEXT FEW YEARS THE COMPANY REFUSED TO IDENTIFY WHICH ASSETS MAY BE SOLD ALTHOUGH ANALYSTS PREDICT IT MAY START BY GETTING RID OF ITS LOWMARGIN FOOD DISTRIBUTION OPERATIONS IN EUROPE IN CLOSING THE TWO FROZENFOOD PLANTS CAMPBELL HAS BECOME THE LATEST CASUALTY IN A MARKETING WAR THAT IS CRIMPING PROFITS AT SEVERAL OF THE LARGEST FOOD COMPANIES IN THE US INCLUDING CONAGRA INC AND THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS GIVEN THE FIERCE PRICECUTTING IN THE FROZENFOOD CASE FRANK E WEISE CHIEF FINANCIAL OFFICER OF CAMPBELL SAID IN AN INTERVIEW THAT THE FUTURE OF CAMPBELL'S LEMENU ENTREE LINE WAS UNCERTAIN ITS LONGTERM VIABILITY IS BEING REASSESSED HE SAID ALTHOUGH HE ADDED THE PRODUCT WON'T BE SOLD OFF OR WITHDRAWN ONE OPTION WOULD BE TO INCORPORATE LEMENU INTO THE BIGGER AND MORE SUCCESSFUL SWANSON LINE IN THE 52 WEEKS ENDED DEC 27 SALES OF CAMPBELL'S LEMENU MEALS DROPPED 35 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE WHILE SWANSON SALES WERE UP SLIGHTLY ANALYSTS WERE SURPISED AT THE SIZE OF THE CHARGE WHICH WILL REDUCE NET INCOME BY 119 A SHARE IN FISCAL 1993 ENDING JULY 30 BEFORE THE CHARGE ANALYSTS ESTIMATED THE CAMDEN NJ COMPANY WOULD EARN ABOUT 225 A SHARE THIS FISCAL YEAR UP FROM 195 A SHARE IN FISCAL 1992 CAMPBELL'S STOCK CLOSED AT 42 A SHARE UP 625 CENTS IN NEW YORK STOCK EXCHANGE TRADING FRIDAY THE COMPANY SAID IT WILL SHUT DOWN A PLANT IN SALISBURY MD WITH 804 EMPLOYEES AND A MRS PAUL'S FROZEN SEAFOOD PLANT STAFFED BY 504 PEOPLE IN PHILADELPHIA LEAVING FOUR US FROZENFOOD PLANTS THE SHUTDOWNS ARE THE LATEST IN A SERIES OF COSTCUTTING MOVES UNDERTAKEN BY DAVID W JOHNSON CAMPBELL'S PRESIDENT AND CHIEF EXECUTIVE SINCE HE JOINED THE COMPANY IN 1990 THAT YEAR CAMPBELL TOOK A 300 MILLION RESTRUCTURING CHARGE WHILE MR JOHNSON'S CUTS HAVE SHARPLY IMPROVED THE COMPANY'S PERFORMANCE MAKING IT A FAVORITE ON WALL STREET SOME CHARGE HE HAS DEVOTED TOO MUCH TIME TO FINANCIAL REENGINEERING AND HASN'T FOCUSED ENOUGH ON BUILDING CAMPBELL'S MAIN BUSINESSES 9302160023 930216 INTERNATIONAL BRIEF PHILIP MORRIS COS COMPANY GETS TENDER TO BUY CONTROL OF LITHUANIA FIRM PHILIP MORRIS COS SAID IT WON A TENDER TO BUY CONTROL OF ONE OF LITHUANIA'S TWO TOBACCO COMPANIES IN THE COMPANY'S CONTINUING EXPANSION INTO EASTERN EUROPE AND THE FORMER SOVIET UNION THE NEW YORKBASED COMPANY SAID IT WOULD BEGIN NEGOTIATIONS WITH THE LITHUANIAN GOVERNMENT IN A FEW WEEKS AND EXPECTED TO COMPLETE THE DEAL BY THE END OF APRIL PHILIP MORRIS HAS PLEDGED TO SPEND 30 MILLION FOR 55 OF THE KLAIPEDA STATE TOBACCO COMPANY INCLUDING CAPITAL INVESTMENT PURCHASE OF RAW MATERIALS AND TRAINING OF THE 270 EMPLOYEES PHILIP MORRIS WILL PRODUCE FOR THE BALTICS FROM THE FACTORY AND COULD IF THERE IS DEMAND EXPORT INTO RUSSIA SAID ANDREAS GEMBLER PRESIDENT OF PHILIP MORRIS'S EASTERN AND CENTRAL EUROPEAN BUSINESS THE PLANT HAS CAPACITY OF ABOUT SIX BILLION CIGARETTES A YEAR BUT IS PRODUCING HALF THAT BECAUSE OF SHORTAGES OF TOBACCO AND SPARE PARTS MR GEMBLER ALSO SAID THAT IN RUSSIA PHILIP MORRIS HAS HIRED AN INVESTMENT BANK NOMURA INTERNATIONAL PLC TO DETERMINE A FAIR PRICE FOR A TOBACCO PLANT IN KRASNODAR THAT THE COMPANY IS NEGOTIATING TO BUY PHILIP MORRIS IS TALKING TO MANAGEMENT OF THE PLANT FOR AN INITIAL 49 STAKE RAISING THAT TO 75 TO 80 LATER THE COMPANY WANTS TO INCREASE THE PLANT'S ANNUAL CAPACITY TO 25 BILLION CIGARETTES 9302160022 930216 FINANCING BUSINESS AMAX INC AMAX INC A MINING CONCERN SAID IN NEW YORK THAT ON MARCH 15 IT WILL REDEEM ALL OF ITS 8625 SINKING FUND DEBENTURES DUE MARCH 1 2001 AT 101180 PER 1000 IN PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9302160021 930216 CREDIT MARKETS TREASURY BONDS COULD BREAK 7 MANAGERS SAY BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE YIELD FOR THE 30YEAR TREASURY BOND TUMBLING TO 712 FRIDAY ITS LOWEST POINT IN OVER SIX YEARS A GROWING NUMBER OF MONEY MANAGERS AND ECONOMISTS BELIEVE LONGTERM INTEREST RATES COULD DROP EVEN FURTHER PERHAPS BELOW 7 LOW INFLATION A WEAK ECONOMY AND PLENTY OF HINTS FROM PRESIDENT CLINTON THAT HE IS SERIOUS ABOUT INCREASING TAXES AND CUTTING THE FEDERAL BUDGET DEFICIT HAVE SPURRED SERIOUS TALK ABOUT EVEN LOWER YIELDS ON 30YEAR TREASURY BONDS IN THE COMING WEEKS SPECULATION ABOUT A POSSIBLE REDUCTION IN THE AMOUNT OF 30YEAR BONDS THE TREASURY SELLS AT ITS QUARTERLY REFUNDINGS HAS ALSO HELPED TO FUEL THE BULLISH RATE TALK THE BOND MARKETS SEEM TO HAVE GRANTED MR CLINTON THE BENEFIT OF THE DOUBT OVER THE PAST FEW WEEKS RALLYING EVEN THOUGH HE HAS YET OFFICIALLY TO OUTLINE HIS ECONOMIC PACKAGE THE PRESIDENT IS EXPECTED TO REVEAL THE DETAILS TOMORROW EVENING DURING A TELEVISED ADDRESS TO A JOINT SESSION OF CONGRESS THERE IS AN ENORMOUS AMOUNT OF OPTIMISM SAYS BRUCE STEINBERG MANAGER OF MACROECONOMIC ANALYSIS AT MERRILL LYNCH & CO IT LOOKS LIKE A CREDIBLE DEFICITREDUCTION PACKAGE IS BEING MADE MR CLINTON STILL HAS TO OUTLINE WHOSE TAXES WILL BE RAISED AND WHICH SPENDING WILL BE CUT BACK AND BY HOW MUCH AND THEN THERE IS THE QUESTION OF WHAT CONGRESS WILL DO WITH HIS PROPOSALS MR STEINBERG WARNS BUT DESPITE THE UNANSWERED QUESTIONS THE BOND MARKETS ARE IN GOOD SHAPE HE SAYS FURTHER DROPS IN LONGTERM INTEREST RATES MAY NOT COME RIGHT AWAY SAYS RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK BUT A TEST OF 7 COULD COME LATER ON ACCORDING TO MR BERNER INVESTORS ARE GAINING CONFIDENCE THAT MR CLINTON WILL DELIVER THE GOODS AND TAKE SERIOUS STEPS TO SIGNIFICANTLY REDUCE THE FEDERAL BUDGET DEFICIT HE'S ADDRESSING THE BOND MARKETS AND SEEMS TO BE CALMING THINGS DOWN A BIT IN THE PAST MONTH THE YIELD ON THE 7625 COUPON 30YEAR TREASURY BOND MATURING IN 2022 HAS PLUNGED NEARLY 030 PERCENTAGE POINT TO 718 ITS PRICE HAS SURGED MORE THAN THREE POINTS OR MORE THAN 30 FOR A BOND WITH 1000 FACE VALUE THE YIELD ON THE NEWEST 30YEAR BOND AUCTIONED THURSDAY REACHED 712 BY FRIDAY IF THE YIELD MOVES BELOW 711 IT WILL BE A RECORD LOW FOR THE 30YEAR BOND SINCE REGULAR AUCTIONS OF THE BOND BEGAN IN 1977 THE POSSIBILITY OF A SIGNIFICANT CHANGE IN THE GOVERNMENT'S SPENDING POLICIES SAYS WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC IS WHY BOND YIELDS ARE SO LOW NOW EVEN THOUGH RECENT ECONOMIC REPORTS HAVE SUGGESTED THAT THE ECONOMY MAY BE GAINING SPEED PEOPLE DON'T SEE THE ECONOMIC LEVELS AS JUSTIFYING THESE LOW RATES IN AND OF THEMSELVES HE SAYS SO THE ABILITY TO STAY AT CURRENT INTEREST RATE LEVELS OR GO LOWER IS IN THE HANDS OF PRESIDENT CLINTON MR CLINTON'S SPEECH IS A REAL BIG DEAL FOR THE BOND MARKETS SAYS BRAD TANK A GOVERNMENT FUND MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT MR TANK SAYS THAT BOND INVESTORS HAVE BEEN OPTIMISTIC ABOUT THE CLINTON PLANS FOR DEFICIT REDUCTION AND HE SAYS JUSTIFIABLY SO AND JUST WHAT ARE BOND INVESTORS HOPING THE PRESIDENT WILL PROPOSE A BUDGETDEFICIT REDUCTION BY 1997 OF GREATER THAN 75 BILLION SAYS MR TANK WITH NO SMOKE AND MIRRORS HE SAYS THAT SUCH A REDUCTION WOULD NOT INCLUDE HEALTHCARE CUTS WHICH MANY PEOPLE BELIEVE COULD NOT EXCEED MORE THAN 40 BILLION ANYWAY THE BOND MARKETS ARE LOOKING FOR A CLEAR CONCISE PACKAGE WHERE THE NUMBERS ADD UP AND REDUCTIONS AREN'T ALL BASED ON HEALTHCARE REFORMS SAYS STEVEN R RICCHIUTO CHIEF FINANCIAL ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES INC BOND INVESTORS ARE ALSO HOPING THAT MR CLINTON WILL CHOOSE TO RAISE SOME NEW MONEY THROUGH ENERGY TAXES HE SAYS RATHER THAN JUST HIGHER INCOME TAXES WHICH WOULD DIRECTLY AFFECT RETURNS ON TAXABLE BOND INVESTMENTS THE FINAL CONCERN OF THE BOND MARKETS AND ONE WHICH IS LIKELY TO AFFECT YIELDS FURTHER DOWN THE LINE IS HOW CONGRESS REACTS TO MR CLINTON'S PROGRAM WHETHER THE DEMOCRATS BREAK RANKS OR STICK WITH THE PROGRAM WILL MAKE A BIG DIFFERENCE IN HOW THE BOND MARKETS REACT MR RICCHIUTO SAYS DESPITE THE GROWING CONSENSUS FOR EVEN LOWER YIELDS ONE BIG MONEY MANAGER SAYS INVESTORS COULD BE FOOLING THEMSELVES JAMES GAMMON SENIOR PORTFOLIO MANAGER AT LOEWS/CNA HOLDINGS A UNIT OF LOEWS CORP SAYS THAT TODAY'S LOW YIELDS ARE UNLIKELY TO BE AROUND COME SEPTEMBER A CORRECTION WILL PROBABLY HAPPEN IN THE FALL HE PREDICTS THE PROGRAMS WE ARE HEARING FROM WASHINGTON AREN'T GOING TO REDUCE THE DEFICIT BY ANY MEANINGFUL AMOUNT AND BY THE TIME INVESTORS REALIZE THAT YIELDS WILL RISE AGAIN MR GAMMON SAYS LOEWS/CNA HAS SOLD 21 BILLION OF ITS MUNICIPAL BOND PORTFOLIO SINCE JAN 20 AND PLANS TO SELL AN ADDITIONAL 24 BILLION IN THE NEXT FEW WEEKS MR GAMMON SAYS THE COMPANY IS ALSO CONSIDERING THE SALE OF A SUBSTANTIAL AMOUNT OF ZEROCOUPON MUNICIPAL BONDS ZEROCOUPON BONDS ARE SOLD AT A DEEP DISCOUNT TO FACE VALUE AND PAY NO INTEREST LOEWS/CNA'S BIG BOND SALES AREN'T SIMPLY A BET ON THE DIRECTION OF INTEREST RATES ACCORDING TO MR GAMMON OVER 90 OF THE REASON FOR SELLING THE BONDS IS TO RAISE CASH TO COVER ASBESTOS LIABILITY CLAIMS AGAINST CONTINENTAL CASUALTY CO A SUBSIDIARY OF CNA FINANCIAL CORP IN WHICH LOEWS OWNS A SUBSTANTIAL STAKE THE SALES WOULD REPRESENT MORE THAN 40 OF THE BOOK VALUE OF THE COMPANY'S TOTAL HOLDINGS OF MUNICIPAL BONDS AT THE END OF LAST YEAR AND SHOULD BRING MORE THAN 500 MILLION IN PROFIT MR GAMMON SAYS BUT ANOTHER REASON FOR THE SALES MR GAMMON SAYS IS TO TAKE PROFITS ON MUNICIPAL BOND INVESTMENTS AT A TIME WHEN HE BELIEVES INTEREST RATES HAVE BOTTOMED OUT IT JUST HAPPENS THAT OUR NEEDS ARE AT EXACTLY THE SAME TIME AS A MULTIYEAR HIGH IN MUNICIPAL BOND PRICES HE SAYS PRICES OF TREASURY NOTES AND BONDS ENDED FLAT TO HIGHER FRIDAY WITH THE BEST PERFORMANCE POSTED BY ISSUES WITH LONGER MATURITIES TRADING ENDED EARLY AT 2 PM EST IN ADVANCE OF THE PRESIDENTS DAY HOLIDAY ALL BOND MARKETS WERE CLOSED YESTERDAY IN OBSERVANCE OF THE HOLIDAY THE NEW 7125 COUPON 30YEAR TREASURY BOND AUCTIONED LAST WEEK ROSE 3/4 POINT OR 750 FOR A BOND WITH 1000 FACE VALUE TO 100 ITS YIELD DROPPED TO 712 FROM 715 LATE THURSDAY THE BOND MARKET'S FOCUS FRIDAY WAS ALMOST ENTIRELY ON POSITION SQUARING AHEAD OF THE LONG WEEKEND AND ON THE DISTRIBUTION OF SECURITIES THAT DEALERS PICKED UP DURING THE TREASURY'S QUARTERLY REFUNDING LAST WEEK DEALERS SAID THAT WHILE THE BOND MARKET STUMBLED OVER WEDNESDAY'S 10YEAR TREASURY NOTE AUCTION THE POSITIVE UNDERTONE THAT HAS LED THE MARKET HIGHER SO FAR THIS YEAR APPEARS TO HAVE SURVIVED WITH THE 3574 BILLION REFUNDING BEHIND IT THE MARKET IS FREE TO FOCUS ITS ATTENTION ON TWO MAJOR NEWS EVENTS IN THE COMING WEEK THE FIRST WILL BE MR CLINTON'S ADDRESS TOMORROW NIGHT TO A JOINT SESSION OF CONGRESS THE FOLLOWING MORNING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN IS SCHEDULED TO GIVE HIS SEMIANNUAL HUMPHREYHAWKINS TESTIMONY BEFORE THE SENATE BANKING COMMITTEE AT WHICH HE WILL REPORT ON THE FED'S OUTLOOK FOR ECONOMIC AND MONETARY POLICY MEANWHILE FORD MOTOR CREDIT CO'S 15 BILLION GLOBAL BOND OFFERING MET ENORMOUS US DEMAND AS EXPECTED INVESTORS IN THE US SNAPPED UP THE FORD OFFERING IN THE WAKE OF MUTED EUROPEAN AND ASIAN INTEREST DEMAND FOR THE ISSUE IN THE US WAS SO STRONG THAT INVESTMENT BANKERS LED BY GOLDMAN SACHS & CO RAISED THE DEAL'S SIZE BY 500 MILLION TO 15 BILLION WHILE OFFERING THE SECURITIES AT A HIGHER PRICE RELATIVE TO TREASURY NOTES WITH COMPARABLE MATURITIES FORD MOTOR CREDIT THE FINANCE ARM OF FORD MOTOR CO OFFERED THE ISSUE OF FIVEYEAR GLOBAL BONDS AS 625 SECURITIES TO YIELD 629 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY'S FIVEYEAR NOTE THE GLOBAL OFFERING FORD'S FIRST IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP IN SECONDARY TRADING HIGHGRADE CORPORATE BONDS ENDED FLAT TO UP 1/4 POINT AFTER MODEST LOSSES EARLIER IN THE SESSION JUNK BONDS WERE LITTLE CHANGED TERENCE DONNELLY AND THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9302160020 930216 FINANCING BUSINESS UNIVERSAL ELECTRONICS INC UNIVERSAL ELECTRONICS INC TWINSBURG OHIO SAID IT WILL MAKE AN INITIAL PUBLIC OFFERING OF 24 MILLION COMMON SHARES AT 13 EACH THE MAKER OF REMOTE CONTROLS WILL OFFER TWO MILLION EXISTING HOLDERS WILL OFFER THE REST MONTGOMERY SECURITIES IS THE LEAD UNDERWRITER 9302160019 930216 CLINTON TO SEEK BIGGER TAX BITE ON THE WEALTHY ECONOMIC PLAN WILL CUT DOMESTIC SPENDING LESS THAN FIRST ENVISIONED BY DAVID ROGERS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMIC PLAN THAT PRESIDENT CLINTON WILL UNVEIL TOMORROW WILL CUT DOMESTIC SPENDING LESS THAN FIRST ENVISIONED BY BUDGET WRITERS BUT TAKE A MUCH BIGGER TAX BITE OUT OF THE WEALTHY IN THE EFFORT TO RAISE REVENUE WITHOUT UNDULY BURDENING THE MIDDLE CLASS THE SOCALLED MILLIONAIRE'S SURTAX WOULD BE GREATLY EXPANDED TO APPLY TO TAXABLE INCOMES OF AT LEAST 250000 CREATING A NEW EFFECTIVE TOP MARGINAL RATE OF 396 FOR THOSE HOUSEHOLDS PEOPLE WITH TAXABLE INCOMES OF 140000 ARE EXPECTED TO PAY AT THE NEW RATE OF 36 UP FROM TODAY'S TOP RATE OF ABOUT 31 IN A TELEVISED SPEECH TO THE NATION LAST NIGHT MR CLINTON ACKNOWLEDGED HIS PLAN WOULD RAISE TAXES ON MANY IN THE MIDDLE CLASS BUT HE SAID THAT 70 OF THE NEW TAXES HE WOULD PROPOSE WOULD COME FROM PEOPLE EARNING MORE THAN 100000 ANNUALLY MEANWHILE IN A LASTMINUTE FLURRY OF DECISIONMAKING AND REMAKING THE ADMINISTRATION IS SCALING BACK ITS PLANS FOR SPENDING CUTS THE FINAL CLINTON BUDGET PLAN AIMS THE SPENDING KNIFE AT THREE SECTORS GOVERNMENT EMPLOYEES HOSPITALS AND DOCTORS AND DEFENSE BUDGET DIRECTOR LEON PANETTA'S GOAL OF CUTTING SPENDING BY 2 FOR EVERY 1 OF TAX INCREASES HAS BEEN ABANDONED AND THE WHITE HOUSE PROBABLY WILL ARGUE THAT ITS PLAN IS SPLIT ROUGHLY EVENLY BETWEEN TAX INCREASES AND SPENDING CUTS MAKING THAT CASE HOWEVER REQUIRES COUNTING SOME TAX INCREASES AS SPENDING REDUCTIONS AS WELL AS COUNTING LOWER INTEREST PAYMENTS ON THE FEDERAL DEBT AS A SPENDING CUT THOUGH A VARIETY OF DOMESTIC PROGRAMS PARTICULARLY IN AGRICULTURE WILL FEEL SIGNIFICANT CUTS THE SAVINGS GO TO FINANCE FAVORED INITIATIVES IN AREAS SUCH AS CHILD EDUCATION AND NUTRITION PROGRAMS AS WELL AS NEW TECHNOLOGY TO SPUR INVESTMENT MR CLINTON'S PLAN WILL INCLUDE A TWOPART INVESTMENT TAX CREDIT AN INCREMENTAL CREDIT THAT PROBABLY WILL EXPIRE AT THE END OF 1994 AND A SEPARATE PERMANENT CREDIT FOR SMALL BUSINESSES ONLY IN HIS SPEECH LAST NIGHT MR CLINTON ATTEMPTED TO EMPHASIZE THE CUTS HE WOULD PROPOSE IN GENERAL GOVERNMENT SPENDING INCLUDING A REDUCTION IN WHITE HOUSE STAFF A CUT OF 100000 IN FEDERAL WORKERS THROUGH ATTRITION OVER SEVERAL YEARS AND 150 SPECIFIC CUTS IN FEDERAL PROGRAMS BUT THOSE CUTS ARE MORE THAN OFFSET BY THE INCREASES IN DOMESTIC APPROPRIATIONS THAT MR CLINTON WILL PROPOSE IN A TONE THAT WAS ALMOST APOLOGETIC MR CLINTON SAID THAT HE SIMPLY CAN'T PROTECT THE MIDDLE CLASS FROM TAX INCREASES AS HE HAD SAID HE WOULD TRY TO DO DURING HIS CAMPAIGN WE JUST HAVE TO FACE THE FACT THAT TO MAKE THE CHANGES OUR COUNTRY NEEDS MORE AMERICANS MUST CONTRIBUTE TODAY SO THAT ALL AMERICANS CAN DO BETTER TOMORROW HE SAID MR CLINTON STEERED CLEAR OF SPECIFICS ABOUT THE TYPES OF SACRIFICE HE WOULD SEEK LEAVING THOSE UNTIL HIS ADDRESS TOMORROW NIGHT BEFORE A JOINT SESSION OF CONGRESS BUT HE STRESSED THAT SOME TOUGH ACTIONS WILL NEED TO BE TAKEN AND HE CALLED ON THE AMERICAN PEOPLE TO SUPPORT HIM IN TAKING THOSE ACTIONS FOR THE GREATER GOOD AT SEVERAL POINTS HE LASHED OUT AT THE SPECIAL INTERESTS AND LOBBYISTS WHOM HE SAID ALREADY ARE WORKING TO BLOCK HIS PROPOSALS HERE IN WASHINGTON HE SAID COMMON SENSE ISN'T TOO COMMON USING CHARTS MUCH LIKE FORMER PRESIDENTIAL CANDIDATE ROSS PEROT HE DEMONSTRATED HOW LARGE THE FEDERAL BUDGET DEFICIT HAD GOTTEN AND HOW LITTLE THE US GOVERNMENT HAD INVESTED IN PUBLIC PROJECTS HE SAID HE WILL SEEK TO INCREASE INVESTMENT AND REDUCE THE DEBT IN A BRIEF TELEVISED RESPONSE TO THE SPEECH SENATE MINORITY LEADER ROBERT DOLE GAVE QUALIFIED SUPPORT TO MR CLINTON'S CALL FOR SHARP CUTS IN THE DEFICIT BUT THE KANSAS REPUBLICAN WARNED AGAINST A PROGRAM WEIGHTED TOO HEAVILY TOWARD TAX INCREASES INCREASED SPENDING AND ADDITIONAL MANDATES TO BUSINESS FROM WASHINGTON THE FINAL PACKAGE DOESN'T ACHIEVE THE PRESIDENT'S MOST RECENT PUBLIC GOAL FOR THE DEFICIT TO SLICE 145 BILLION FROM THE DEFICIT PROJECTED FOR FISCAL 1997 WHICH BEGINS OCT 1 1996 BUT MR CLINTON'S SPOKESMAN GEORGE STEPHANOPOULOS INSISTS THAT IT COMES CLOSE TO COME CLOSE MR CLINTON IS EXPECTED TO ANNOUNCE THAT HE IS CUTTING DEFENSE SPENDING IN 1997 BY ABOUT 40 BILLION MORE THAN HE SAID PRESIDENT BUSH PROPOSED BUT THE CLINTON WHITE HOUSE ARGUES THAT THE BUSH DEFENSE PLAN WOULD HAVE COST MORE THAN MR BUSH SAID IT WOULD SO IT FIRST INCREASED THE BASELINE AND THEN CUT FROM THE NEW BASELINE IN FISCAL 1994 WHICH BEGINS THIS OCT 1 MR CLINTON IS EXPECTED TO PROPOSE SHAVING 83 BILLION OFF THE 266 BILLION BUSH SPENDING PLAN MR PANETTA SAID OVER THE WEEKEND THAT THE BUDGET WILL TRIM WHAT GOVERNMENT SPENDS ON GOVERNMENT BY 34 BILLION OVER FOUR YEARS MORE THAN 9 BILLION OF THAT COMES FROM MR CLINTON'S EXECUTIVE ORDER TO REDUCE TRAVEL PRINTING CONSULTING AND OTHER ADMINISTRATIVE COSTS BY 14 AFTER ADJUSTING FOR INFLATION THE REST WILL COME FROM MAKING GOVERNMENT EMPLOYEES PAY MORE FOR THEIR HEALTH CARE AND OTHERWISE SHAVING THEIR COMPENSATION MUCH OF THE REMAINING SPENDING CUTS COME FROM SQUEEZING DOCTORS AND HOSPITALS WHO CARE FOR MEDICARE PATIENTS RATHER THAN INCREASING PREMIUMS BY USING SUCH SAVINGS FOR DEFICIT REDUCTION HOWEVER MR CLINTON CAN'T USE THEM TO FINANCE HIS AMBITIOUS PLAN TO EXTEND COVERAGE TO AMERICANS WITHOUT HEALTH INSURANCE RURAL DEVELOPMENT AND NUTRITION PROGRAMS ARE EXPECTED TO BENEFIT BUT CUTS ARE EXPECTED IN FARM PRICESUPPORT PROGRAMS ONE OPTION IS TO DENY FUTURE PURCHASING AUTHORITY TO A CONSERVATION PROGRAM THAT PAYS FARMERS TO TAKE ACRES OUT OF PRODUCTION THE PLAN ALSO IS EXPECTED TO SHAVE ABOUT 3 BILLION OFF THE FOREIGNAID BUDGET OVER THE NEXT FOUR YEARS AND TO TRIM 14 BILLION FROM THE ENERGY DEPARTMENT'S URANIUMENRICHMENT ACTIVITIES BUT MR CLINTON PLANS PLENTY OF SPENDING INCREASES BEGINNING WITH A 16 BILLION STIMULUS PACKAGE THAT WILL INCREASE FUNDING FOR PUBLIC WORKS IN THE CURRENT FISCAL YEAR ABOUT 4 BILLION OF THAT WILL GO TOWARD EXTENDING JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED AND ANOTHER 1 BILLION OR SO WILL GO TOWARD SUMMER YOUTH JOBS PROGRAMS SPACE SCIENCE AND TECHNOLOGY APPEAR TO BE BIG WINNERS WITH AN EXPECTED INCREASE OF MORE THAN 14 BILLION OVER THE NEXT FOUR YEARS ACCORDING TO AN INTERNAL SUMMARY OF THE CLINTON SPENDING PROGRAM REP JIM BACCHUS D FLA WHOSE DISTRICT INCLUDES THE KENNEDY SPACE CENTER SAID VICE PRESIDENT GORE TOLD HIM YESTERDAY THAT THE ADMINISTRATION WILL SEEK 225 BILLION FOR THE SPACE STATION AS NASA HAS REQUESTED OTHER OFFICIALS SAID THE ADMINISTRATION IS EXPECTED TO CALL FOR TIGHTER MANAGEMENT OF THE SPACE STATION AND MAY EMPHASIZE ROBOTICS BOTH TO REDUCE FUTURE OPERATING COSTS AND TO DEMONSTRATE THE PROJECT IS RELEVANT TO INDUSTRIAL AMERICA THE SUPERCONDUCTING SUPERCOLLIDER THE TEXAS ATOM SMASHER IS SLATED TO GET 640 MILLION NEXT YEAR UP 23 FROM LAST YEAR BUT 26 BELOW THE BUSH PLAN IN ADDITION OFFICIALS SAID MR CLINTON WILL PROPOSE AN ENERGY TAX THAT IS BASED PRIMARILY ON THE HEAT CONTENT OF FUELS MEASURED IN BRITISH THERMAL UNITS IN ITS PUREST FORM A BTU TAX HITS POLITICALLY POTENT COAL HARDER THAN IT WOULD THE ALTERNATIVEAN ENERGY SALES TAX BUT THE ADMINISTRATION TINKERED WITH THE DESIGN OF THE TAX SO THAT MR CLINTON CAN ARGUE THAT IT NEITHER UNFAIRLY GOUGES COAL NOR UNFAIRLY FAVORS OIL WHILE THE CLINTON PROGRAM WILL HIT THE MIDDLE CLASS AND HEAVILY HIT THE WELLTODO MR CLINTON IS SAID TO BE TELLING LAWMAKERS AT WHITE HOUSE MEETINGS THAT THOSE WITH INCOMES UNDER 30000 WON'T PAY ANY MORE IN TAXES AS A RESULT OF HIS PLAN THE BROADER TEMPORARY INVESTMENT TAX CREDIT WHICH IS TO BE RETROACTIVE TO DECEMBER 1992 IS STRUCTURED TO REWARD NEW PURCHASES OF PLANT AND EQUIPMENT RATHER THAN PURCHASES THAT WOULD HAVE BEEN MADE ANYWAY SEVERAL CORPORATE DEDUCTIONS ARE LIKELY TO BE CURTAILED IN THE PLAN INCLUDING THOSE FOR LOBBYING HOUSE MAJORITY LEADER RICHARD GEPHARDT SAID HE HOPES TO TIE THE DEFICITREDUCTION PLAN AND MR CLINTON'S HEALTHCARE REFORM PACKAGE INTO A SINGLE PIECE OF LEGISLATION AND GET IT THROUGH CONGRESS BEFORE THE END OF THE SUMMER BUT IT IS QUESTIONABLE WHETHER THE HEALTHCARE PACKAGE WILL BE COMPLETED IN TIME TO MAKE THAT POSSIBLE JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9302160018 930216 BUSINESS BRIEF NATIONAL STEEL CORP NATIONAL INTERGROUP TO SELL REMAINING SHARES IN FIRM NATIONAL STEEL CORP WHICH FILED FOR AN INITIAL PUBLIC OFFERING THIS MONTH DISCLOSED NATIONAL INTERGROUP INC PLANS TO SELL ITS REMAINING STAKE IN THE COMPANY NATIONAL STEEL SAID JAPAN'S NKK CORP WHICH OWNS 70 OF THE STEELMAKER HAS NO PRESENT INTENTION TO DISPOSE OF ANY SHARES NATIONAL STEEL ALSO SAID IT EXPECTS A NET LOSS FOR THE FIRST QUARTER IN THE 1992 FIRST QUARTER IT HAD A LOSS OF 191 MILLION BEFORE AN ACOUNTING CHANGE ON SALES OF 5641 MILLION 9302160017 930216 BUSINESS BRIEF DIGITAL COMMUNICATIONS ASSOCIATES THIRD QUARTER WILL INCLUDE TOTAL 677 MILLION CHARGES DIGITAL COMMUNICATIONS ASSOCIATES INC ALPHARETTA GA SAID IT WILL TAKE ABOUT 677 MILLION IN CHARGES IN ITS THIRD QUARTER ENDING MARCH 31 MOSTLY RELATED TO ITS PRINTERPRODUCTS UNIT THE SUBSIDIARY PACIFIC DATA PRODUCTS INC IS EXPECTED TO HAVE AN OPERATING LOSS FOR THE QUARTER BECAUSE OF A LARGERTHANEXPECTED SALES DECLINE IN THE PERIOD DIGITAL COMMUNICATIONS A PERSONALCOMPUTER PRODUCTS COMPANY SAID CHANGES IN THE LASER PRINTER PERIPHERALS MARKET PROMPTED IT TO RESTRUCTURE THE UNIT THE RESTRUCTURING WILL RESULT IN A WRITEOFF OF CERTAIN ASSETS RESULTING IN A ONETIME CHARGE OF ABOUT 32 MILLION TO DIGITAL COMMUNICATIONS FOR THE THIRD QUARTER THE COMPANY ALSO WILL WRITE OFF THE REMAINING GOODWILL ASSOCIATED WITH ITS 1990 ACQUISITION OF PDP RESULTING IN A ONETIME CHARGE OF ABOUT 599 MILLION THE COMPANY ALSO WILL TAKE A WRITEOFF FOR OTHER ASSETS OF ABOUT 46 MILLION IN THE YEAREARLIER QUARTER DIGITAL COMMUNICATIONS POSTED NET INCOME OF 6 MILLION OR 53 CENTS A SHARE ON SALES OF 511 MILLION 9302160016 930216 BRASCAN SELLS MAJOR POSITION IN BREWER LABATT TORONTO'S BRONFMAN GROUP IN DRIVE TO TRIM DEBT IS SHEDDING CORE ASSETS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE UNRAVELING OF PETER AND EDWARD BRONFMAN'S CORPORATE EMPIRE CONTINUED LAST WEEK WITH THE SALE OF ANOTHER CORE ASSET THE GROUP'S CONTROLLING BLOCK OF CANADIAN BREWING COMPANY JOHN LABATT LTD THE SALE TO A GROUP OF UNDERWRITERS FRIDAY RAISED ABOUT 993 MILLION CANADIAN DOLLARS US7906 MILLION FOR ONE OF THE GROUP'S MAJOR HOLDING COMPANIES BRASCAN LTD BRINGING TO C196 BILLION THE AMOUNT OF CASH RAISED BY THE GROUP FROM ASSET SALES IN A SINGLE WEEK LAST TUESDAY THE GROUP'S NORANDA FOREST INC DIVISION SOLD ITS 493 STAKE IN MACMILLAN BLOEDEL LTD TO A GROUP OF CANADIAN UNDERWRITERS FOR C971 MILLION THERE HAS CLEARLY BEEN SIGNIFICANT PRESSURE BROUGHT TO BEAR BY THE BANKS FOR THE GROUP TO REDUCE THEIR DEBT LOAD SAYS ALAIN TUCHMAIER A FINANCIAL SERVICES ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO THE BEST EVIDENCE OF THAT IS THAT MOST OF THIS CASH WILL BE USED TO PAY DOWN DEBT THE TIMING OF THE SALES ANALYSTS SAY SUPPORTS THIS CONCLUSION WITH ONE OF THE GROUP'S MAIN ASSETS FINANCIAL SERVICES CONCERN ROYAL TRUSTCO LTD SET TO ANNOUNCE A LARGE LOSS AND MASSIVE WRITEDOWNS FOR THE FOURTH QUARTER OF 1992 THIS WEEK THE PROCEEDS WILL HELP BOLSTER BALANCE SHEETS OF COMPANIES LIKE BRASCAN THE SALES ALSO CAME THE SAME WEEK THAT CANADA'S CHIEF FINANCIAL REGULATOR ASKED CANADIAN BANKS TRUST COMPANIES AND INSURANCE FIRMS TO OUTLINE THEIR EXPOSURE TO THE GROUP IN THE FORM OF LOANS AND OTHER INVESTMENTS REGULATORS WON'T BE DISCLOSING THE FIGURE PUBLICLY BUT ANALYSTS SAY IT COULD REACH C10 BILLION PEOPLE CLOSE TO THE GROUP SAY THIS ESTIMATE COULD BE TOO HIGH POSSIBLY INCLUDING UNDRAWN LINES OF CREDIT AND LOANS MADE BY NONCANADIAN FINANCIAL INSTITUTIONS BUT THEY HAVEN'T PROVIDED A MORE ACCURATE NUMBER OFFICIALS AT BRASCAN AND OTHER GROUP COMPANIES DENY THAT THE BANKS HAVE BROUGHT ANY PRESSURE TO BEAR ON THEM TO SELL ASSETS THEY SAY THAT DEMAND FOR NEW EQUITY BY CANADIAN INVESTORS TRIGGERED THE SALES THE SALES THEY ADD ARE PART OF THE GROUP'S ONGOING STRATEGY OF STREAMLINING AND RATIONALIZING ITS HOLDINGS WHICH HAS ALREADY RESULTED IN SEVERAL SMALLER TRANSACTIONS IMPROVING THE BANKS' COMFORT LEVEL WITH THE GROUP IS A SIDE BENEFIT OF A SERIES OF TRANSACTIONS AIMED AT REALIZING THE VALUE OF SOME OF ITS INVESTMENTS FOR THE BENEFIT OF SHAREHOLDERS SAID EDWARD KRESS CHIEF FINANCIAL OFFICER OF BRASCAN MR KRESS DESCRIBED THE SALE OF LABATT AS AN OPPORTUNITY THAT WE COULDN'T PASS UP HE SAID UNDERWRITERS APPROACHED BRASCAN TO PROPOSE THE TRANSACTION IN THE WAKE OF THE SUCCESS OF THE MACMILLAN BLOEDEL ISSUE THE SALE CAME DESPITE THE REPEATED INSISTENCE BY GROUP OFFICIALS THAT THE LABATT INTEREST WAS A CORE INVESTMENT AND NOT FOR SALE MORE ASSET SALES ARE BELIEVED TO BE IN THE OFFING AS PROBLEMS AT THE GROUP'S REAL ESTATE AND FINANCIAL SERVICES OPERATIONS CONTINUE ANALYSTS EXPECT ROYAL TRUSTCO TO REPORT FURTHER WRITEDOWNS WHILE TRIZEC CORP A GROUP REAL ESTATE CONCERN HAS ABOUT C900 MILLION OF OBLIGATIONS THAT NEED TO BE REFINANCED NEXT YEAR SOME DEBT RATING AGENCIES ALREADY HAVE VOICED CONCERN ABOUT BRASCAN'S ABILITY TO COMPLY WITH A COVENANT ATTACHED TO A PUBLIC ISSUE OF DEBENTURES BY MAINTAINING SHAREHOLDERS' EQUITY AT MORE THAN C2 BILLION BELIEVED TO BE SIMILAR TO BANK LOAN COVENANTS MR KRESS SAID HE IS CONFIDENT BRASCAN WON'T BREACH COVENANTS ALMOST ANY OF THE GROUP'S PROFITABLE OPERATIONS COULD BE SOLD IN THE COMING MONTHS ANALYSTS AND PEOPLE CLOSE TO THE GROUP SAY HEADING THE LIST OF LIKELY CANDIDATES IS LONDON INSURANCE GROUP INC OR ASSETS CONTROLLED BY RESOURCES CONCERN NORANDA INC WE'RE SEEING A RESTRUCTURING UNDER WAY HERE SAID MCLEAN MCCARTHY'S MR TUCHMAIER THEY'VE ALREADY SOLD TWO OF THEIR BIGGEST AND BEST ASSETS POTENTIALLY ANYTHING IS UP FOR SALE ROBERT HARDING CHIEF OPERATING OFFICER OF HEES INTERNATIONAL BANCORP INC A KEY GROUP HOLDING COMPANY SAYS THAT THE GROUP ISN'T SEEKING BUYERS FOR ANY OTHER ASSETS DECISIONS ON THE ASSET SALES HE SAYS WERE MOTIVATED BY MARKETS NOT BANKS BUT HE ADDED THAT ONE OF OUR JOBS IS TO ASSESS OFFERS FOR THINGS WHEN THEY COME IN THE DOOR PETER AND EDWARD BRONFMAN THE GROUP'S FOUNDERS ARE COUSINS OF MONTREAL'S BRONFMAN DISTILLING DYNASTY WHO CONTROL SEAGRAM CO THE TWO FAMILIES HAVE NO BUSINESS OPERATIONS IN COMMON LARRY M GREENBERG CONTRIBUTED TO THIS ARTICLE 9302160015 930216 FINANCING BUSINESS APPLIED SIGNAL TECHNOLOGY INC APPLIED SIGNAL TECHNOLOGY INC SUNNYVALE CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 22 MILLION COMMON SHARES AT 650 TO 850 EACH COWEN & CO WILL MANAGE THE OFFERING FOR THE MAKER OF SIGNAL RECONNAISSANCE EQUIPMENT THE COMPANY AFTER PREVIOUS SALES OF SHARES THROUGH PRIVATE PLACEMENTS WILL HAVE ABOUT 74 MILLION SHARES OUTSTANDING AFTER THE OFFERING 9302160014 930216 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FINANCE MINISTERS ACKNOWLEDGED THAT STAGNANT ECONOMIES ARE MAKING IT HARDER TO ATTAIN PERFORMANCE TARGETS FOR MONETARY UNION SLUGGISH GROWTH IS REINING IN TAX RECEIPTS AND BLOATING GOVERNMENT PAYMENTS TO THE UNEMPLOYED THAT IS PREVENTING EC COUNTRIES FROM CUTTING BUDGET DEFICITS AND DEBT TO ELIGIBILITY LEVELS IN THE MONETARY PLAN IN WHICH THE EC AIMS TO CREATE A COMMON CURRENCY FOR AS MANY MEMBER STATES AS POSSIBLE BY 1999 OTHER CRITERIA COVER INFLATION LONGTERM INTEREST RATES AND CURRENCY STABILITY FOR NOW ONLY FRANCE AND LUXEMBOURG COMPLY EC GOVERNMENTS' BUDGET DEFICITS ARE EXPECTED TO AMOUNT TO 575 OF ECONOMIC OUTPUT THIS YEAR UP FROM 525 IN 1992 AND WELL ABOVE THE 3 TARGET THE EC UNEMPLOYMENT RATE OF 10 MEANWHILE IS EXPECTED TO GROW TO 11 THIS YEAR SOME ECONOMISTS ARGUE THAT THE TARGETS ARE UNREALISTIC AND UNHEALTHY GIVEN THE EUROPEAN ECONOMY'S SLIDE TOWARD RECESSION EC OFFICIALS FEAR ROUSING PUBLIC OPPOSITION IF MEETING THE TARGETS CAUSES HIGH UNEMPLOYMENT AND SLOW GROWTH MORE THAN 10000 FARMERS IN SEOUL DENOUNCED THE US AT A RALLY TO PROTEST PRESSURES IN WORLD TRADE TALKS TO OPEN THE SOUTH KOREAN MARKET TO RICE IMPORTS THE GOVERNMENT VOWED TO RESIST THE DEMANDS MAJOR FARM EXPORTING NATIONS IN SEEKING TO ELIMINATE GLOBAL TRADE BARRIERS WANT ASIAN RICEGROWING COUNTRIES TO DISCONTINUE PROTECTING THEIR FARMERS FROM FOREIGN COMPETITION FOR EXAMPLE IN SOUTH KOREA WHERE FARMERS ACCOUNT FOR 15 OF THE 42 MILLION POPULATION RICE PRICES ARE FIVE TO SIX TIMES GREATER THAN WORLD MARKET LEVELS LAST FRIDAY FARMERS' FEDERATIONS OF SOUTH KOREA JAPAN AND TAIWAN JOINTLY PROTESTED THE MOVE TO FORCE RICE IMPORTS SPAIN'S UNEMPLOYMENT RATE JUMPED TO 2006 IN THE FOURTH QUARTER FROM 1835 IN THE THIRD QUARTER THE NATIONAL STATISTICS INSTITUTE SAID IN THE LATEST THREE MONTHS 266470 PEOPLE LOST THEIR JOBS PUTTING THE TOTAL UNEMPLOYED AT 31 MILLION WHILE THE WORK FORCE SHRANK TO 152 MILLION DOWN 8280 FROM THE PREVIOUS QUARTER THE GOVERNMENT LINKED LAST YEAR'S ECONOMIC DETERIORATION AND UNEMPLOYMENT RISE TO SALARY INCREASES THAT AVERAGED 9 CAUSING JOB LOSSES IN SECTORS FACING COMPETITION TWO GERMAN COMPANIES AGREED TO THE GOVERNMENT'S DEMAND TO STOP SUPPLYING EQUIPMENT FOR A SUSPECTED NEW CHEMICAL WEAPONS FACTORY IN LIBYA SIMILAR TO THE RABTA PLANT THAT WESTERN COUNTRIES ASSERTED MAKES POISON GAS GERMANY DIDN'T PLAN CHARGES OF ILLEGAL ARMS EXPORTS AS A SIXMONTH INQUIRY DETERMINED THE TWO COMPANIES WERE UNAWARE THEY WERE WORKING FOR A CHEMICAL WEAPONS PROJECT IN TARHUNA IN THE 1989 RABTA AFFAIR A GERMAN COMPANY PLAYED THE LEADING ROLE IN BUILDING WHAT WAS IDENTIFIED AS A LIBYAN CHEMICAL PLANT BUT WHICH LIBYA SAID IS A FACTORY TO PRODUCE MEDICINE AS A RESULT OF MUSLIM MILITANTS' ATTACKS ON FOREIGN VISITORS EGYPT'S TOURISM REVENUE HAS SHRUNK AT LEAST 60 MILLION A MONTH WITH LOST RECEIPTS SO FAR TOTALING 700 MILLION THE GOVERNMENT SAID THAT DESPITE ITS SECURITY MEASURES AIMED AT SAFEGUARDING THE COUNTRY'S MAIN SOURCE OF FOREIGN CURRENCY HOTELS TOURIST OPERATORS AND SHOPS ARE REPORTING SLACK BUSINESS ALSO IMPERILING JOBS THE MILITANTS WHO WANT A MUSLIM GOVERNMENT KILLED ONE TOURIST AND WOUNDED FIVE LAST YEAR TOURISM RECEIPTS EACH MONTH HAVE SUNK AS MUCH AS 20 FROM A YEAR EARLIER IN THE FISCAL YEAR ENDING JUNE 30 EGYPT COULD FALL 25 SHORT OF ITS FORECAST OF 4 BILLION RUSSIA WILL SOON ABANDON COMPULSORY SALES OF AGRICULTURAL GOODS TO THE STATE AND RELY INSTEAD ON VOLUNTARY SUPPLY CONTRACTS FOR FEDERAL AND REGIONAL FOOD RESERVES WITH INFLATION RAMPANT FARMERS BALKED AT SELLING TO THE STATE AT FIXED PRICES AND TURNED TO MORE LUCRATIVE PRIVATE MARKETS IN SOUTH KOREA'S CRACKDOWN ON VIOLATIONS OF FOREIGN PATENTS AND COPYRIGHTS 98 PEOPLE HAVE BEEN ARRESTED THIS YEAR FOR ALLEGEDLY PIRATING GOODS RANGING FROM CLOTHING TO COMPUTER SOFTWARE HUNGARY'S INDUSTRY AND TRADE MINISTER IVAN SZABO WAS APPOINTED TO SUCCEED MIHALY KUPA AS FINANCE MINISTER MR SZABO AN ENGINEER AND ECONOMIST PLEDGED TO CONTINUE PROGRAMS MR KUPA HAD BEGUN BEFORE RESIGNING IN A CABINET SHUFFLE 9302160013 930216 NEW YORK'S VISTA HOTEL AIMS TO GET MORE MEETINGS NEW YORK THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY SAID IT WILL SPEND ABOUT 6 MILLION ON IMPROVEMENTS TO THE WORLD TRADE CENTER'S VISTA HOTEL IN LOWER MANHATTAN AIMED AT MAKING THE VISTA A CENTER OF BUSINESS MEETINGS FUNDED BY A REFINANCING OF THE VISTA'S MORTGAGE THE PORT AUTHORITY PROJECT COMPLEMENTS A THREEYEAR 23 MILLION FACELIFT UNDER WAY BY VISTA'S OPERATOR HILTON INTERNATIONAL ONE OF THE PLANNED IMPROVEMENTS IS A NEW BUSINESS CONFERENCE CENTER COMPRISING SIX NEW MEETING ROOMS AND HIGHTECH AUDIOVISUAL EQUIPMENT HILTON IS ALSO REFURBISHING THE 22STORY HOTEL'S 821 ROOMS THESE IMPROVEMENTS WILL HELP POSITION THE VISTA TO GET A LARGER SHARE OF THE EMERGING BUSINESS MEETINGS MARKET IN LOWER MANHATTAN SAID RICHARD C LEONE PORT AUTHORITY CHAIRMAN THE VISTA'S RENOVATION IS THE FIRST SINCE THE HOTEL OPENED IN 1981 THE PORT AUTHORITY SAID IT EXPECTS THE PROJECT TO BE COMPLETED BY 1995 9302160012 930216 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEB 12 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM THE FOLLOWING MEDIUM TERM NOTE ISSUES ON MARCH 8 1993 15000000 PRINCIPAL AMOUNT OF ITS855 ISSUES DUE MARCH 7 2001 ON MARCH 10 200000000 PRINCIPAL AMOUNT OF ITS 6 ISSUES DUE MARCH 10 1995 AND ON MARCH 12 200000000 PRINCIPAL AMOUNT OF ITS 805 ISSUES DUE MARCH 12 2002 HATFIELD PA WILL REDEEM ON MARCH 1 1993 120000 PRINCIPAL AMOUNT OF ITS 85 FIRST MORTGAGE GROSS REVENUE BONDS SERIES 1979 DUE MARCH 1 2006 HARLEYSVILLE NATIONAL BANK HARLEYSVILLE PA IS TRUSTEE HODGE LA WILL REDEEM ON MARCH 1 1993 2000000 AGGREGATE PRINCIPAL AMOUNT OF ITS 58 COMBINED UTILITY SYSTEM REVENUE BONDS DUE MARCH 1 1998 MORGAN GUARANTY TRUST COMPANY NEW YORK IS TRUSTEE MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 1982 SERIES A SINGLE FAMILY MORTGAGE PURCHASE BONDS 5000 EACH OF ITS 125 DUE JUNE 1 AND DEC 1 1993 10000 EACH OF ITS 1275 DUE JUNE 1 AND DEC 1 1994 60000 OF ITS 13125 DUE DEC 1 1997 395000 OF ITS 13375 DUE DEC 1 2009 AND 14000 OF ITS VARIABLE DUE JUNE 1 2014 SHAWMUT BANK NA IS PAYING AGENT MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 1983 SERIES A SINGLE FAMILY MORTGAGE PURCHASE BONDS 35000 EACH OF ITS 82 DUE JUNE 1 AND DEC 1 1993 35000 EACH OF ITS 84 DUE JUNE 1 AND DEC 1 1994 40000 EACH OF ITS 86 DUE JUNE 1 AND DEC 1 1995 40000 EACH OF ITS 87 DUE JUNE 1 AND DEC 1 1996 45000 OF ITS 88 DUE JUNE 1 1997 50000 OF ITS 88 DUE DEC 1 1997 690000 OF ITS 9 DUE JUNE 1 2003 2225000 OF ITS 9125 DUE JUNE 1 2013 AND 375000 OF ITS 6 DUE JUNE 1 2014 SHAWMUT BANK NA IS PAYING AGENT MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 1983 SERIES B SINGLE FAMILY MORTGAGE PURCHASE BONDS 95000 OF ITS 97 DUE JUNE 1 1993 100000 OF ITS 97 DUE DEC 1 1993 105000 OF ITS 985 DUE DEC 1 1994 115000 OF ITS 985 DUE DEC 1 1994 115000 OF ITS 10 DUE JUNE 1 1995 120000 OF ITS 10 DUE DEC 1 1995 135000 OF ITS 10 DUE DEC 1 1998 1170000 OF ITS 10625 DUE DEC 1 2001 AND 3400000 OF ITS 1075 DUE JUNE 1 2007 SHAWMUT BANK NA IS PAYING AGENT MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 1983 SERIES C SINGLE FAMILY MORTGAGE PURCHASE BONDS 45000 EACH OF ITS 9 DUE JUNE 1 AND DEC 1 1993 45000 OF ITS 92 DUE JUNE 1 1994 50000 OF ITS 92 DUE DEC 1 1994 55000 EACH OF ITS 94 DUE JUNE 1 AND DEC 1 1995 60000 EACH OF ITS 95 DUE JUNE 1 AND DEC 1 1996 65000 EACH OF ITS 96 DUE JUNE 1 AND DEC 1 1997 670000 OF ITS 10 DUE DEC 1 2001 AND 1220000 OF ITS 10125 DUE DEC 1 2007 SHAWMUT BANK NA IS PAYING AGENT MASSACHUSETTS HOUSING FINANCE AGENCY WILL REDEEM ON MARCH 15 1993 THE FOLLOWING 1983 SERIES D SINGLE FAMILY MORTGAGE PURCHASE BONDS 150000 OF ITS 105 DUE DEC 1 2014 SHAWMUT BANK NA IS PAYING AGENT MILPITAS CALIF WILL REDEEM ON MARCH 1 1993 1200000 AGGREGATE PRINCIPAL AMOUNT OF ITS CERTIFICATES OF PARTICIPATION SERIES 1981 MILPITAS LIBRARY PROJECT DUE SEPT 1 OF THE FOLLOWING YEARS 220000 DUE 1993 240000 DUE 1994 260000 DUE 1995 280000 DUE 1996 AND 200000 DUE 1997 BANK OF AMERICA GLENDALE CALIF IS ESCROW AGENT MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON MARCH 15 1993 ITS QUALIFIED MORTGAGE PURCHASE NOTES DUE SEP 15 2002 MERCANTILE BANK OF ST LOUIS IS TRUSTEE RACINE WI WILL REDEEM ON MARCH 11 1993 ITS HOSPITAL FACILITY REVENUE BONDS ST LUKE'S MEMORIAL HOSPITAL INC PROJECT SERIES 1977 FIRST BANK MILWAUKEE IS TRUSTEE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY WILL REDEEM ON MARCH 1 1993 ITS GENERAL PURPOSE REVENUE BONDS SERIES A DUE JAN 1 1995 AND SERIES C DUE JAN 1 2013 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE WYOMING MUNICIPAL POWER AGENCY WILL REDEEM ON MARCH 11 1993 18660000 PRINCIPAL AMOUNT OF THE FOLLOWING 1978 SERIES A POWER SUPPLY SYSTEM REVENUE BONDS DUE JAN 1 OF THE FOLLOWING YEARS 63 DUE 1994 64 DUE 1995 65 DUE 1996 66 DUE 1997 AND 1998 AND 7 DUE 2016 THE FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE FIRST INTERSTATE OVERSEAS NV WILL REDEEM ON MARCH 15 1993 ITS GUARANTEED FLOATING RATE SUBORDINATED NOTES DUE 1995 9302160011 930216 BUSINESS BRIEF HASBRO INC TEAMSTERS CONTRACT DISPUTE ENDS BEFORE PLANNED PROTEST TOY MAKER HASBRO INC PAWTUCKET RI RESOLVED A LABOR DISPUTE WITH THE TEAMSTERS UNION JUST HOURS BEFORE UNION MEMBERS WERE TO STAGE A PROTEST AT THE TOY FAIR SHOW IN NEW YORK ON FRIDAY UNDER THE CONTRACT PROPOSAL ACCEPTED BY HASBRO AND UNION MEMBERS HASBRO CUT THE STARTING SCALE FOR NEW WORKERS BY 32 RATHER THAN THE 41 ORIGINALLY PROPOSED STARTING WORKERS NOW WILL RECEIVE 750 AN HOUR DOWN FROM 11 AN HOUR HASBRO ALSO AGREED TO RAISE WAGES SLIGHTLY FOR CURRENT EMPLOYEES THE AGREEMENT CAME AFTER THE UNION HAD CALLED FOR A BOYCOTT OF HASBRO PRODUCTS WORKERS HAD CHARGED THAT THE COMPANY THREATENED TO MOVE WAREHOUSE JOBS TO MEXICO A CHARGE HASBRO DENIED 9302160010 930216 BUSINESS BRIEF BANGKOK BANK LTD THAI BANK TO HELP SHORE UP FIRST CITY INVESTMENT CO BANGKOK BANK LTD THAILAND'S LARGEST COMMERCIAL BANK HAS AGREED TO HELP SHORE UP FIRST CITY INVESTMENT CO A FINANCE AND SECURITIES FIRM TROUBLED BY BAD LOANS LIQUIDITY PROBLEMS AND DWINDLING DEPOSITS DETAILS OF THE RESCUE PLAN WEREN'T RELEASED BUT ARE THOUGHT TO INCLUDE BANGKOK BANK TAKING A STAKE IN FIRST CITY AN INJECTION OF FUNDS FROM THE BANK OF THAILAND AND A TWO BILLION BAHT 782 MILLION CAPITAL INCREASE APPROVED BY FIRST CITY SHAREHOLDERS LAST MONTH THE ACCORD FOLLOWS A MEETING THURSDAY BETWEEN BANK OF THAILAND GOVERNOR VIJIT SUPINIT AND BANGKOK BANK PRESIDENT CHATRI SOPHONPANICH THAT CAPPED MORE THAN A MONTH OF NEGOTIATIONS ANALYSTS SAID BANGKOK BANK PROBABLY WON'T PAY MORE THAN 65 MILLION BAHT FOR 10 OF FIRST CITY SOME ANALYSTS SUGGESTED THAT BANGKOK BANK AGREED TO THE DEAL BECAUSE IT THOUGHT IT COULD BENEFIT FROM ACQUIRING CONTROL OF FIRST CITY'S STOCK TRADING LICENSE ADDING IT TO THE THREE IT ALREADY OWNS 9302160009 930216 ECONOMY PRODUCER PRICES INCREASED 02 DURING JANUARY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COST OF WHOLESALE GOODS REMAINED UNDER CONTROL IN JANUARY DESPITE A PICKUP IN DEMAND THE LABOR DEPARTMENT SAID ITS PRODUCER PRICE INDEX ROSE 02 LAST MONTH AFTER A 01 INCREASE IN DECEMBER THE CORE RATE OF INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS ROSE 04 LAST MONTH AT THE PRODUCER LEVEL ITS BIGGEST JUMP SINCE MAY ANALYSTS SAID THE LARGE RISE IN THE CORE RATE WASN'T AN INDICATION THAT PRICES ARE ABOUT TO TAKE OFF AS A RESULT OF ACCELERATING ECONOMIC ACTIVITY CONSUMER SPENDING HAS INCREASED IN RECENT MONTHS AND INDUSTRIAL PRODUCTION AND FACTORY ORDERS ARE UP ONE FACTOR BEHIND THE JANUARY PRICE RISE WAS A 26 JUMP IN TOBACCO PRICES BECAUSE OF HIGHER FEDERAL EXCISE TAXES AND NEW CAR PRICES ROSE 12 ADDING ABOUT 02 PERCENTAGE POINT TO THE CORE RATE WHOLESALE PRICE INCREASES FOR OTHER FINISHED GOODS WERE MORE MODERATE WE HAVE PERHAPS SEEN THE END OF THE DECLINE IN INFLATION BUT IT IS STILL NOT A PROBLEM SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY PRODUCER PRICES FOR CRUDE AND INTERMEDIATE GOODS INCREASED FOR THE FIRST TIME SINCE SEPTEMBER RISING 03 AND 07 RESPECTIVELY CRUDEGOODS PRICES EXCLUDING FOOD AND ENERGY JUMPED 31 WITH MUCH OF THE GAIN COMING FROM A RISE IN CONSTRUCTION MATERIALS ANALYSTS SAID THE INCREASE IN CRUDE PRICES ISN'T LIKELY TO TRANSFER TO THE CONSUMER THE WEIGHT OF CRUDE MATERIALS IN FINAL PRICES IS VERY SMALL SAID JOEL POPKIN HEAD OF A CONSULTING FIRM HERE BEARING HIS NAME CONSUMER CONFIDENCE TERMED FLAT SEPARATELY THE UNIVERSITY OF MICHIGAN'S EARLY REPORT ON CONSUMER CONFIDENCE IN FEBRUARY SHOWED IT TO BE VIRTUALLY FLAT ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT THE INDEX ROSE TO 898 FROM 893 IN JANUARY CONSUMER CONFIDENCE HAS LEVELED OFF CONSIDERABLY SINCE THE END OF LAST YEAR WHICH WAS MARKED BY BIG MONTHLY GAINS IN ANOTHER REPORT THE COMMERCE DEPARTMENT SAID BUSINESS INVENTORIES ROSE 04 IN DECEMBER WHILE SALES JUMPED 19 THE GOOD MONTH OF SALES PUSHED THE INVENTORYTOSALES RATIO WHICH IS THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES RATE DOWN TO 146 FROM 148 IN NOVEMBER THAT WAS THE LOWEST LEVEL IN 10 YEARS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN DECEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR JANUARY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM JANUARY 1991 9302160008 930216 FINANCING BUSINESS GENTA INC GENTA INC SAN DIEGO FILED FOR A PUBLIC OFFERING OF 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES A NEWS RELEASE FROM THE MAKER OF PHARMACEUTICAL PRODUCTS DIDN'T SAY HOW PROCEEDS WERE TO BE USED AND EXECUTIVES WEREN'T AVAILABLE TO COMMENT 9302160007 930216 FINANCING BUSINESS DPL INC DPL INC'S DAYTON POWER & LIGHT CO UNIT WILL SELL 220 MILLION OF 7 7/8 FIRST MORTGAGE BONDS DUE 2024 PRICED AT 9932 TO YIELD 7934 THE DAYTON OHIO UTILITY SAID PROCEEDS WILL BE USED TO REDEEM ITS 8 3/4 SERIES FIRST MORTGAGE BONDS DUE 2006 ITS 8 1/2 SERIES DUE 2007 AND ITS 9 SERIES DUE 2016 9302160006 930216 INTERNATIONAL SAATCHI'S CHIEF INVESTOR GROUP SET ADIDAS PURCHASE BY LISA BANNON AND ES BROWNING STAFF REPORTERS OF THE WALL STREET JOURNAL SAATCHI & SAATCHI'S CHIEF EXECUTIVE ROBERT LOUISDREYFUS AND A GROUP OF INVESTORS WILL ATTEMPT A TURNAROUND OF ADIDAS AG THE GERMAN SPORTINGGOODS COMPANY THE ADVERTISING EXECUTIVE AND HIS FELLOW INVESTORS AGREED TO PAY 615 MILLION MARKS 373 MILLION FOR A CONTROLLING STAKE IN ADIDAS NOW HELD BY FRENCH ENTREPRENEUR BERNARD TAPIE THROUGH BERNARD TAPIE FINANCE SA MR TAPIE OWNS 78 OF BTF GMBH A HOLDING COMPANY THAT IN TURN OWNS 95 OF ADIDAS THE PRICE APPEARS TO BE A GOOD DEAL FOR MR TAPIE WHO BALKED AT PENTLAND GROUP PLC WHEN IT TRIED TO REDUCE A SIMILAR BID PRICE PENTLAND BACKED OUT OF A PLANNED ACQUISITION IN OCTOBER WHEN A FINANCIAL REVIEW OF ADIDAS TURNED UP WHAT PENTLAND CALLED SERIOUS FINANCIAL PROBLEMS MR LOUISDREYFUS WILL PERSONALLY BUY A 15 STAKE IN ADIDAS AND WILL BECOME CHAIRMAN OF ITS MANAGEMENT BOARD EFFECTIVE APRIL 7 HE PLANS TO STEP DOWN FROM HIS POST AT SAATCHI & SAATCHI IN MARCH TWO GROUPS OF BRITISH INVESTORS COATBRIDGE HOLDINGS LTD AND OMEGA VENTURES LTD HAVE ACQUIRED SHAREHOLDINGS OF 15 AND 199 RESPECTIVELY MR LOUISDREYFUS JOINS THREE FRENCH STATECONTROLLED INSTITUTIONAL INVESTORS THAT ALREADY OWN STAKES IN ADIDAS CREDIT LYONNAIS ASSURANCES GENERALES DE FRANCE AND THE BANQUE WORMS UNIT OF UNION DES ASSURANCES DE PARIS WILL INCREASE THEIR COLLECTIVE SHAREHOLDING IN ADIDAS TO 421 FROM 20 NOW GILBERTE BEAUX CHAIRMAN OF ADIDAS'S MANAGEMENT BOARD AND A CLOSE ALLY OF MR TAPIE INCREASED HER SHAREHOLDING TO 8 FROM 5 SHE WILL STEP DOWN FROM THE MANAGEMENT BOARD AND BECOME CHAIRWOMAN OF THE ADIDAS SUPERVISORY BOARD MR LOUISDREYFUS WHO IS FRENCH WON ACCLAIM FOR RESCUING SAATCHI & SAATCHI THE BRITISH ADVERTISING AGENCY AFTER TAKING THE HELM IN 1990 ADIDAS TOO WILL NEED AN OVERHAUL THE COMPANY EXPECTED TO POST A LOSS FOR 1992 HAS SEEN ITS MARKET SHARE ERODE REFLECTING COMPETITION FROM US RIVALS NIKE INC AND REEBOK INTERNATIONAL LTD MEANWHILE MR DREYFUS INTENDS TO REMAIN ON THE BOARD OF SAATCHI AS A NONEXECUTIVE DIRECTOR IN MID1992 SAATCHI SELECTED CHARLES SCOTT TO BECOME CHIEF EXECUTIVE APRIL 1 AT THE SAME TIME SAATCHI SAID IT PLANS TO NAME WENDY SMYTH CURRENTLY CHIEF FINANCIAL OFFICER AS FINANCE DIRECTOR 9302160005 930216 FINANCING BUSINESS HOMELAND STORES INC HOMELAND STORES INC OKLAHOMA CITY OKLA SAID IT INTENDS TO REDEEM ON MARCH 1 ALL OF ITS 155 SUBORDINATED NOTES DUE NOV 1 1997 HOMELAND SAID THE CALL WILL BE AT THE OPTIONAL REDEMPTION PRICE INCLUDING A PREMIUM PLUS ACCRUED INTEREST HOMELAND SAID 47750000 FACE AMOUNT OF THE NOTES ARE OUTSTANDING 9302160004 930216 NET OF UNITED ASSET MANAGEMENT INCREASED IN 4TH PERIOD YEAR SPECIAL TO THE WALL STREET JOURNAL NEW YORK UNITED ASSET MANAGEMENT CORP SAID IT EXPECTS TO REPORT RECORD FOURTHQUARTER AND YEAREND RESULTS TODAY AS ASSETS UNDER MANAGEMENT SWELLED TO MORE THAN 75 BILLION AT DEC 31 AND OPERATING CASH FLOW BALLOONED TO MORE THAN TWICE REPORTED NET INCOME IN 1992 UAM PRESIDENT NORTON REAMER SAID THE HOLDING COMPANY FOR MONEY MANAGEMENT FIRMS EXPECTS TO REPORT NET INCOME OF 95 MILLION TO 10 MILLION OR 42 CENTS TO 43 CENTS A SHARE FOR THE FOURTH QUARTER ON REVENUE OF 85 MILLION THAT COMPARES WITH NET INCOME OF ABOUT 7 MILLION OR 33 CENTS A SHARE ON REVENUE OF 671 MILLION POSTED FOR THE YEAREARLIER PERIOD YEARAGO FIGURES HAVE BEEN RESTATED TO REFLECT A MERGER ACCOUNTED FOR AS A POOLING OF INTERESTS FOR THE FULL YEAR MR REAMER SAID THE COMPANY EXPECTS TO REPORT EARNINGS OF 152 TO 153 A SHARE FULLY DILUTED 33 HIGHER THAN THE 115 A SHARE POSTED FOR THE YEAREARLIER PERIOD UAM WILL REPORT EARNINGS OF 154 TO 156 A SHARE ON A PRIMARY BASIS COMPARED WITH 122 A SHARE FOR THE YEARAGO PERIOD FULLYEAR NET INCOME SOARED 45 TO 34 MILLION TO 35 MILLION ON REVENUE OF 290 MILLION THAT COMPARES WITH NET INCOME OF 244 MILLION ON REVENUE OF 235 MILLION POSTED FOR THE YEAREARLIER PERIOD ASSETS UNDER MANAGEMENT ROSE 23 FROM THE YEAREARLIER LEVEL OF 61 BILLION ADJUSTED FOR A POOLING OF INTERESTS MERGER MAINLY FROM MARKET APPRECIATION BUT HELPED BY THE FIVE ACQUISITIONS MADE DURING THE YEAR SAID MR REAMER OPERATING CASH FLOW WHAT REAMER CALLS UAM'S TRUE EARNINGS POWER IN THE QUARTER GREW TO 22 MILLION TO 23 MILLION UP 35 FROM THE 17 MILLION REPORTED IN THE COMPARABLE PERIOD IN 1991 9302160003 930216 CHEN FORMS COMPANY FOR SUPERCOMPUTERS WITHOUT IBM'S HELP EAU CLAIRE WIS SUPERCOMPUTER DESIGNER STEVE S CHEN SAID HE HAS FORMED A NEW COMPANY TO CARRY ON THE WORK BEGUN BY SUPERCOMPUTER SYSTEMS INC WHICH CLOSED RECENTLY AFTER INTERNATIONAL BUSINESS MACHINES CORP CEASED FUNDING IT DR CHEN SAID THE NEW COMPANY SUPERCOMPUTERS INTERNATIONAL WILL BE A TOTALLY NEW AND SEPARATE ENDEAVOR WITH NO FUNDING OR SUPPORT FROM IBM HE SAID HE ANTICIPATES FUNDING SUPPORT FROM BOTH THE PUBLIC AND PRIVATE SECTORS BUT DIDN'T ELABORATE ANALYSTS HAVE BEEN SKEPTICAL ABOUT DR CHEN'S CHANCES OF DRUMMING UP NEW FUNDING TO REPLACE IBM'S HELP INDEED THE DECISION TO SHUT DOWN CLOSELY HELD SSI CAME AFTER THE COMPANY FAILED TO FIND AN UNDERWRITER FOR AN INITIAL PUBLIC OFFERING LAST YEAR AND THEN CAME UP SHORT IN ATTEMPTS AT A PRIVATE PLACEMENT PART OF THE PROBLEM IS THE ENORMOUS COST OF DEVELOPING A NEW SUPERCOMPUTER IBM IS BELIEVED TO HAVE SPENT WELL OVER 100 MILLION DURING THE PAST FIVE YEARS ON SSI AND ANALYSTS ESTIMATED THAT THE COMPANY WOULD NEED AT LEAST 60 MILLION MORE TO BRING A MACHINE TO MARKET AT THE SAME TIME A NEW STYLE OF SUPERCOMPUTER ARCHITECTURE KNOWN AS MASSIVELY PARALLEL PROCESSING WHICH USES THOUSANDS OR HUNDREDS OF THOUSANDS OF MICROPROCESSORS HAS BEGUN TO ATTRACT AN INCREASING SHARE OF INVESTMENT AND RESEARCH DOLLARS ALTHOUGH THE SECRETIVE DR CHEN NEVER SPECIFIED IN DETAIL THE DESIGN PLANS FOR HIS MACHINE CALLED THE SS1 IT WAS GENERALLY BELIEVED TO BE A MORETRADITIONAL VECTORSTYLE COMPUTER DR CHEN SAID THE NEW COMPANY WILL NOW APPLY WHAT WE LEARNED IN DESIGNING AND BUILDING A NEW MACHINE FOR EARLY MARKET INTRODUCTION 9302160002 930216 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS 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 PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 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 312 120 TO 149 DAYS 315 150 TO 179 DAYS 318 180 TO 239 DAYS 323 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 316 30 DAYS 318 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 267 TWO MONTHS 270 THREE MONTHS 280 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 301 30 DAYS 302 60 DAYS 303 90 DAYS 306 120 DAYS 311 150 DAYS 315 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 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 MONDAY FEBRUARY 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 294 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 743 60 DAYS 753 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 753 60 DAYS 762 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 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 9302160001 930216 OTC FOCUS RALLY IN BANK STOCKS MAY BE WANING MANAGERS SAY BUT SOME STILL SEE BUYS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE HOT RALLY IN THE SMALLER BANK STOCKS HAS BEEN GOING ON FOR TWO YEARS NOW INVESTMENT PROFESSIONALS DON'T THINK IT'S OVER YET BUT THEY ARE STARTING TO DETECT A FEW WARNING SHIVERS WE'RE NOT IN THE THIRD INNING ANYMORE AND WE'RE NOT YET IN THE NINTH SAYS BRUCE HERRING MANAGER OF FIDELITY SELECT FINANCIAL SERVICES FUND WE'RE PROBABLY IN THE SEVENTH INNING THOUGH HE IS STILL POSITIVE ON THE INDUSTRY HE IS BECOMING A BIT MORE CAUTIOUS BY CONTRAST THE NASDAQ COMPOSITE INDEX ROSE 155 IN 1992 BUT HAS SLOWED DOWN LATELY IT IS UP 2 SO FAR THIS YEAR AND RAN INTO PROFITTAKING LAST WEEK FINISHING FRIDAY AT 69054 DOWN 534 FOR A WHILE IT WAS HARD NOT TO MAKE SOME MONEY NO MATTER WHAT BANK STOCK YOU PICKED SAYS JAMES SCHMIDT MANAGER OF JOHN HANCOCK FREEDOM REGIONAL BANK FUND IN BOSTON FROM 1990 TO 1992 YOU DOUBLED YOUR MONEY JUST BY BUYING STOCK IN BANKS THAT DIDN'T GO OUT OF BUSINESS RECENT BANK MERGERS ALSO HAVE BOOSTED THE NASDAQ BANK INDEX TWO OF THE LARGEST 25 ISSUES IN THE INDEX NATIONAL COMMUNITY BANKS AND PEOPLES WESTCHESTER SAVINGS ARE ACQUISITION CANDIDATES ON JAN 29 BANK OF NEW YORK SAID IT WOULD ACQUIRE NATIONAL COMMUNITY OF WEST PATERSON NJ IN A STOCK SWAP VALUED AT 575 MILLION ON THAT DAY NATIONAL COMMUNITY SHARES JUMPED 50 3/4 IT CLOSED FRIDAY AT 50 1/2 PEOPLES WESTCHESTER ON JAN 26 REJECTED AS INADEQUATE AN ACQUISITION PROPOSAL OF 30 A SHARE FROM A GROUP OF INVESTORS THE STOCK EDGED UP 5/8 TO 38 ON FRIDAY A REBOUND IN DEPRESSED SAVINGSANDLOAN ASSOCIATION SHARES IS ANOTHER REASON THE BANK INDEX HAS SOARED SAYS MR SCHMIDT HE NOTES THAT MANY THRIFT STOCKS HAD PLUNGED SEVERELY BEFORE THE RALLY BEGAN IN LATE 1990 SO THE BIG GAINS WHILE IMPRESSIVE REPRESENT A LONG CLIMB OUT OF THE BASEMENT BUT NOT NECESSARILY THROUGH THE ROOF IN FACT THERE ARE STILL SOME BARGAINS LEFT IN THE GROUP MONEY MANAGERS SAY SCOTT BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON LIKES COLONIAL BANCGROUP IN MONTGOMERY ALA THE STOCK WHICH IS TRADING AT 93 TIMES HIS EARNINGS ESTIMATE OF 220 A SHARE FOR 1993 CLOSED AT 20 1/2 FRIDAY MR BLACK ALSO SAYS SUSQUEHANNA BANCSHARES IS AN ATTRACTIVE BUY THE LITITZ PA BANK IS TRADING AT 97 TIMES THE STREET'S 1993 ESTIMATE OF 290 A SHARE THE STOCK CLOSED DOWN 3/4 TO 28 1/4 FRIDAY A VALUE STOCK PICKER MR BLACK SAYS HE LOOKS ONLY AT BANKS THAT HAVE SET ASIDE ENOUGH RESERVES TO COVER 100 OF THEIR NONPERFORMING LOANS AND ARE LOCATED IN DEMOGRAPHIC AREAS WITH GROWTH OPPORTUNITIES FIDELITY'S MR HERRING SAYS THAT EVEN THOUGH SOME BANK STOCKS ARE TRADING AT HIGH MULTIPLES THEIR EARNINGS GROWTH MORE THAN COMPENSATES FOR THE HIGH PRICE MOST OF THESE COMPANIES IN GENERAL HAVE BALANCE SHEETS FAR SUPERIOR TO ANY TIME IN THE PAST DECADE WHICH ALLOWS THEM TO PRINT ANY KIND OF EARNINGS THEY WANT SAYS MR HERRING FOR EXAMPLE IN 1992 MIDLANTIC CORP EARNED EIGHT CENTS A SHARE COMPARED WITH A LOSS OF 1436 A SHARE IN 1991 MR HERRING SAYS THE STREET EXPECTS THE COMPANY TO POST PERSHARE EARNINGS OF 135 FOR 1993 AND 180 FOR 1994 THE STOCK IS TRADING AT 19 3/8 OR 144 TIMES ITS 1993 ESTIMATE STILL THE RUNUP IS STARTING TO MAKE OTHER BANK STOCKS TOO EXPENSIVE FOR THEIR OWN GOOD SEVERAL MONEY MANAGERS SAY NICK ADAMS WHO MANAGES FIRST FINANCIAL FUND FOR WELLINGTON MANAGEMENT CORP IN BOSTON SAYS HE IS WARY OF MANAGEMENT AT SOME BANKS WHOSE STOCKS HAVE DOUBLED IF THE BANK STILL HAS THE SAME MANAGEMENT THAT GOT IN TROUBLE THE FIRST TIME YOU MAY LOSE AGAIN HE SAYS DURING THE PAST THREE MONTHS MR ADAMS HAS GRADUALLY SOLD SOME BANK STOCKS AND IS CURRENTLY 80 INVESTED DOWN FROM 100 AT THIS TIME A YEAR AGO MR BLACK THINKS ZIONS BANCORP OF SALT LAKE CITY IS APPROACHING ITS SELLING POINT WITH A 4 ESTIMATE FOR 1993 THE STOCK IS TRADING AT 116 TIMES EARNINGS GIVEN ITS CURRENT PRICE OF 46 1/2 ANOTHER STOCK THAT HAS HAD A TREMENDOUS CLIMB WEST ONE BANCORP IS NOW TRADING AT 114 TIMES ITS 1993 ESTIMATE OF 450 THE BOISE IDAHO BANK EASED 1/4 TO 51 1/2 FRIDAY WILMINGTON TRUST CORP WHICH IS TRADING AT 129 TIMES ITS 1993 ESTIMATE OF 233 LOOKS PRICEY TO MR HERRING THE STOCK CLOSED UNCHANGED AT 30 ON FRIDAY OVERTHECOUNTER STOCKS TUMBLED PRESSURED BY SELLING IN SHARES OF HEALTH MAINTENANCE ORGANIZATIONS THE NASDAQ COMPOSITE INDEX SLID 534 OR 077 TO 69054 DECLINING ISSUES OUTNUMBERED ADVANCERS 1413 TO 1178 ON TOTAL VOLUME OF 2146 MILLION SHARES DOWN FROM THURSDAY'S 2358 MILLION TECHNOLOGY STOCKS WERE ALSO HIT BY PROFITTAKING MICROSOFT FELL 1 5/8 TO 83 5/8 INTEL SANK 1 3/8 TO 111 AND APPLE COMPUTER DROPPED 1 1/8 TO 53 7/8 HMO STOCKS TOOK A BEATING AS INVESTORS CONFRONT THE POSSIBILITY THAT EVEN THESE COMPANIES MIGHT NOT BENEFIT UNDER HEALTHCARE SYSTEM CHANGES TO BE PROPOSED BY THE CLINTON ADMINISTRATION THE DAY'S MOST ACTIVE ISSUE US HEALTHCARE DROPPED 4 1/8 TO 48 3/8 ON 46 MILLION SHARES AMONG OTHER HMOS COVENTRY CORP SLID 4 1/2 TO 27 AND TAKECARE FELL 1 5/8 TO 40 3/4 WILT CHAMBERLAIN'S RESTAURANTS FELL 1 3/8 TO 4 5/8 GIVING IT A TWODAY 34 DROP FROM ITS OFFERING PRICE OF 7 ON THURSDAY THE COMPANY OFFERED 14 MILLION SHARES THROUGH UNDERWRITERS LED BY MEYERS POLLOCK ROBBINS INC WILT CHAMBERLAIN'S CURRENTLY HAS ONE FRANCHISED RESTAURANT OPEN IN BOCA RATON FLA 9302160131 930125 REVIEW & OUTLOOK EDITORIAL DIOXIN DESTROYS SHIPS THE DIOXIN BUGABOO SEEMS DETERMINED TO TIE THE COUNTRY IN KNOTS LAST WEEK THE US ENVIRONMENTAL PROTECTION AGENCY BLOCKED THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY FROM DOING ROUTINE DREDGING FOR CARGO SHIPS AT ELIZABETH AND NEWARK WHY THE SLUDGE AT THE BOTTOM OF NEWARK BAY CONTAINS TRACES OF DIOXIN SO INFINITESIMAL THEY WOULDN'T HAVE BEEN DETECTABLE A FEW YEARS AGO THE PORT AUTHORITY APPLIED TO THE ARMY CORPS OF ENGINEERS FOR PERMISSION TO DREDGE ALMOST THREE YEARS AGO IT MENTIONED THE DWORD IN THE APPLICATION AND THAT GOT EPA INVOLVED AFTER 32 MONTHS EPA FINALLY APPROVED BARGING THE TAINTED SLUDGE TO THE MUD DUMP SIX MILES OFF NEW JERSEY'S SANDY HOOK BUT WHILE EPA WAS NAVEL GAZING SLUDGE WAS CONTINUING TO ACCUMULATE SO THE CORPS OF ENGINEERS OK'D ADDITIONAL DREDGING THAT MADE EPA NERVOUS AND JUST HOURS BEFORE DREDGING WAS TO START IT YANKED ITS APPROVAL THIS IS NOT AN ACCEPTABLE WAY TO DO BUSINESS FUMES PORT DIRECTOR LILLIAN LIBURDI WITH EVERYTHING ON HOLD HER CHANNELS AND BERTHS HAVE BEEN SILTING UP AT LOW TIDE THE HEAVIEST SHIPS ACTUALLY END UP RESTING ON THEIR BOTTOMS THAT CAN CAUSE STRUCTURAL DAMAGE AND PERHAPS AN ACCIDENT SOME SHIPS ALREADY HAVE TO LIGHTEN UP AT NORFOLK OR HALIFAX BEFORE SAILING ON TO NEW YORK SOME BYPASS THE PORT ALTOGETHER ABOUT 186000 JOBS IN THE GREATER BIG APPLE AREA DEPEND ON THE PORT STAYING IN BUSINESS THE PURPORTED LINK BETWEEN DIOXIN AND CANCER HAS BECOME AN ALMOST PRO FORMA STORY ON MANY ENVIRONMENTAL BEATS IT'S TRUE THAT MEGADOSES PRODUCE TUMORS IN GUINEA PIGS BUT HAMSTERS ARE MORE RESISTANT AND THE MAIN DANGER TO PEOPLE SEEMS TO BE AN UNSIGHTLY BUT TRANSITORY SKIN CONDITION CALLED CHLORACNE IN 1983 AFTER FINDING SMALL AMOUNTS OF DIOXIN IN THE SOIL THE EPA EVACUATED AND PLOWED UNDER THE TOWN OF TIMES BEACH MISSOURI LATER THE GOVERNMENT'S TOP DIOXIN EXPERT SAID THE AMOUNTS THERE WERE HARMLESS AFTER ALL OH WELL 120 MILLION DOWN THE DRAIN THE DIOXIN IN NEWARK BAY PROBABLY WASHED DOWN THE PASSAIC RIVER FROM AN OLD AGENT ORANGE PLANT IN NEWARK WHICH THE EPA WAS SUPPOSED TO HAVE CLEANED UP IN TESTS MARINE CRITTERS WERE SOAKED IN GUNK SAMPLES FOR 28 DAYS AND CAME OUT WITH CONTAMINATION OF AROUND 10 PARTS PER TRILLION THIS ACCORDING TO THE ENVIRONMENTAL DEFENSE FUND AND NIMBYS ON THE JERSEY SHORE REPRESENTS A MENACE TO THE FOOD CHAIN IF ANYTHING THE FOOD CHAIN IS MORE MENACED NOW WITHIN TWO WEEKS OF GOING INTO THE MUD DUMP THE CONTAMINATED CRUD WOULD BE CAPPED BY THREE FEET OF CLEAN SAND ENTOMBING BOTH THE DIOXIN AND THE CRITTERS A SCUBADIVING GUINEA PIG VISITING THE SITE WOULD BE IN MORE DANGER FROM THE BENDS MOST AMERICANS IF NOT MOST GREENIES WANT TO GO ON LIVING IN AN INDUSTRIAL SOCIETY THAT USES CHEMICALS BUT BECAUSE THEIR INSTRUMENTS BECOME MORE SENSITIVE BY THE DAY SCIENTISTS CAN FIND TRACES OF THESE CHEMICALS ALMOST ANYWHERE THEY CARE TO LOOK WE'RE ALREADY MEASURING PARTS PER QUINTILLION THE MESSAGE DIFFUSION HAPPENS THAT'S ESPECIALLY TRUE WHERE WATER IS SLOSHING AROUND THE STANDARD NOW BEING DEVELOPED BY EPA IN NEW YORK AND NEW JERSEY WILL SOON BE APPLIED WHEREVER MEN GO DOWN TO THE SEA IN SHIPS EVERY OTHER PORT IN THE COUNTRY IS WATCHING SAYS MS LIBURDI AT THE RATE IT'S GOING EPA MAY PROVE EVEN MORE EFFECTIVE THAN RICHARD GEPHARDT IN SHUTTING DOWN INTERNATIONAL TRADE SEE RELATED LETTERS LETTERS TO THE EDITOR AN AWFUL PROBLEM GETS DREDGED UP WSJ FEB 16 1993 9301250064 9302160037 930111 JACK THE RIPPER' A CEO FOR NEW ERA PROSPERS BY PRACTICING TOUGH ART OF FIRING JOHN GRUNDHOFER SALVAGES A MINNESOTA BANK MAKES NO APOLOGY FOR THE MISERY PINK SLIPS AND TISSUE BOXES BY CHRISTINE DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS SOME OF THE MOST SOUGHTAFTER CORPORATE CHIEFS THESE DAYS ARE MEN LIKE JOHN F GRUNDHOFER THE CHAIRMAN OF FIRST BANK SYSTEM INC AS A MANAGER MR GRUNDHOFER BEARS LITTLE RESEMBLANCE TO THE CONGLOMERATEBUILDERS OF THE 1960S THE TEAM PLAYERS OF THE 1970S OR THE FINANCIAL ENGINEERS OF THE 1980S HIS NICKNAME JACK THE RIPPER LOOSELY SUGGESTS HIS SPECIALTY FIRING PEOPLE SINCE MR GRUNDHOFER UNPACKED HIS BAGS HERE THREE YEARS AGO HE HAS ORDERED THE DISMISSAL OF 2000 FIRST BANK EMPLOYEES OR 20 OF THE WORK FORCE AFRAID THE SOFTHEARTED MINNESOTANS HE'D RETAINED WOULD SOMEHOW SNEAK THEIR FORMER COLLEAGUES BACK IN HE EVEN DEVISED A COMPUTERIZED BLACKLIST USING SOCIAL SECURITY NUMBERS TO KEEP FIRED EMPLOYEES FROM RETURNING I'LL DO WHATEVER I HAVE TO DO HOWEVER DRACONIAN THE 54YEAROLD EXECUTIVE DECLARES SHAREHOLDERS ARE LOOKING FOR SOMEONE TO PROTECT THEIR LIVELIHOOD YOU HAVE TO MANAGE TOUGH TO SURVIVE UNDER MR GRUNDHOFER'S MANAGEMENT FIRST BANK'S SHARE PRICE HAS RISEN TO 27375 FROM ABOUT 14 ON THE NEW YORK STOCK EXCHANGE ON FRIDAY THE COMPANY AGREED TO BUY BACK 900000 SHARES IN A PRIVATE TRANSACTION THE PRICE WASN'T DISCLOSED THE COMPANY'S NET INCOME WAS 178 MILLION IN THE FIRST NINE MONTHS OF 1992 IT WAS 19 MILLION IN ALL OF 1989 THE YEAR BEFORE MR GRUNDHOFER TOOK OVER FIRST BANK IS ONE OF THE GREATEST TURNAROUNDS IN BANKING HISTORY SAYS J RICHARD FREDERICKS A MONTGOMERY SECURITIES ANALYST MR GRUNDHOFER DID A SPECTACULAR JOB OF TAKING EXPENSES FROM HIGH LEVELS TO LOW LEVELS HOW REFRESHING NOT EVERYONE HOWEVER HAS BEEN A FAN FEW OF THOSE EMPLOYEES GIVEN PINK SLIPS WILL DEFEND MR GRUNDHOFER'S MANAGEMENT STYLE WHAT HAS HAPPENED AT FIRST BANK IS EMBLEMATIC OF THE HARD PSYCHOLOGICAL ADJUSTMENTS THAT HAVE ATTENDED THE WHITECOLLAR RECESSION ABOUT 28 MILLION WHITECOLLAR WORKERS LOST THEIR JOBS IN THE FIVE YEARS ENDED JANUARY 1992 BY THE LABOR DEPARTMENT'S LATEST COUNT AND LEGIONS MORE HAVE BEEN FIRED OR LAID OFF SINCE CITICORP HAS CHOPPED 13000 WHITECOLLAR JOBS SEARS ROEBUCK & CO IS AXING NEARLY 48050 AT LEAST HALF OF THE 25000 JOBS THAT INTERNATIONAL BUSINESS MACHINES CORP WILL CUT THIS YEAR ARE EXPECTED TO BE WHITECOLLAR ONES BESIDES INSTILLING WIDESPREAD DREAD IN A WORK FORCE ACCUSTOMED TO JOB SECURITY THE STRATEGY OF PROFITSTHROUGHFIRING IS CREATING A NEW AND CURIOUS MODEL FOR MANAGERS THE AXMAN AS HERO A LOT OF CEOS IN THE LAST FEW YEARS HAVE GOTTEN AHEAD BY ACTING LIKE BUTCHERS WHEN THEY COME INTO A CRISIS SITUATION SAYS JAMES O'TOOLE EXECUTIVE DIRECTOR OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S LEADERSHIP INSTITUTE AND SOME WHO HAVE RESISTED THAT ROLE HAVE FOUND THEMSELVES OUT OF WORK GENERAL MOTORS CORP PUSHED OUT CHAIRMAN ROBERT C STEMPEL PARTLY BECAUSE HE COULDN'T BRING HIMSELF TO FIRE HIS COLLEAGUES EVEN WHILE THE TROUBLED AUTO MAKER POSTED GARGANTUAN LOSSES MR STEMPEL FAVORED EARLYRETIREMENT OFFERS AND OTHER BUYOUT PACKAGES IN A MANAGEMENT SPECIALTY THAT OFTEN CALLS AS MUCH FOR BRASS AS FOR VISION EXPERTS SAY A TRACK RECORD IS ESPECIALLY IMPORTANT YOU NEED TO BE SOMEONE WITH THE COURAGE TO TAKE LONELY ACTIONS BECAUSE YOU'RE GOING TO FIND YOURSELF WITHOUT A PEER GROUP SAYS JEFFREY SONNENFELD DIRECTOR OF EMORY UNIVERSITY'S CENTER FOR LEADERSHIP AND CAREER CHANGE FEW COMPANIES WILL PUT SOMEONE IN WHO'S UNTESTED MR GRUNDHOFER CAME FROM WELLS FARGO & CO WHERE SLASHING JOBS HAD BEEN A RELIGION YOU'VE GOT TO BE ABLE TO FIRE PEOPLE OR YOU WON'T BE AROUND HE SAYS IT'S FOR THE GREATER GOOD HE OFTEN TELLS THE STORY OF A FIRST BANK SHAREHOLDER WHO CAME TO HIM IN TEARS DISTRESSED BY THE STOCK'S LOW PRICE IT ONLY FURTHERED MY RESOLVE TO FIRE PEOPLE HE SAYS STILL HE ISN'T INSENSITIVE TO THE MISERY OF MASS FIRING YOU OUGHT TO GO TO A PSYCHIATRIST IF YOU LIKE IT HE SAYS WHEN HE IS TROUBLED MR GRUNDHOFER SAYS HE TALKS IT OVER WITH HIS WIFE OUTDOOR SPORTS ESPECIALLY FLYFISHING HELP HIM FORGET HE SAYS HE CRIED ALL THE WAY THROUGH A RIVER RUNS THROUGH IT A FILM ABOUT A FATHER AND TWO SONS WHO FLYFISH TOGETHER MR GRUNDHOFER DOESN'T FIND HIMSELF DISTRESSED BY THE UNPLEASANTNESS AT FIRST BANK AS OFTEN AS ONE MIGHT THINK BECAUSE HE LEAVES THE ACTUAL FIRING TO OTHERS HE DECIDES HOW MANY PEOPLE NEED TO BE TRIMMED FROM EACH DEPARTMENT SOMETIMES ENTIRE DEPARTMENTS ARE CUT AND THEN LEAVES THE EXECUTION UP TO THE MANAGERS I DON'T WANT TO USURP THEIR AUTHORITY HE SAYS IT IS THIS REMOTENESS AS MUCH AS ANYTHING THAT LEAVES SOME PEOPLE HE HAS FIRED SHAKEN TO THE CORE NO ONE WAS TRYING TO HELP JACK UNDERSTAND THE IMPORTANCE OF WHAT WE WERE PERFORMING SAYS DIANE MERRIFIELD WHO LOST HER JOB AS A BANK VICE PRESIDENT IN MARCH 1990 SHE SAYS SHE AND HER COLLEAGUES WERE TOLD TO BE AT THEIR DESKS AT 800 ONE MORNING AND AS THEY SAT THERE SEVERAL OF THEM WERE CALLED INTO A ROOM ONE AT A TIME AND FIRED IT WAS SORT OF LIKE BRINGING SACRIFICIAL LAMBS TO THE SLAUGHTER MS MERRIFIELD SAYS RON IVERSON FIRED THAT SAME MARCH FROM HIS 100000AYEAR JOB AS A MARKETING MANAGER NEVER EVEN MET MR GRUNDHOFER BECAUSE HE'S SO REMOTE IT'S EASY TO ASSUME HE'S JUST AN SOB SAYS MR IVERSON WHO IS NOW A SUBSTITUTE TEACHER MAKING 70 A DAY FOR A WHILE AFTER MR GRUNDHOFER TOOK OVER FIRING DID BECOME ALMOST A MASSPRODUCTION THING SAYS MARY MELBO A FORMER PERSONNEL OFFICIAL WHEN FIRING TIME CAME HER JOB WAS TO ACCOMPANY A MANAGER INTO HIS DEPARTMENT EXPLAIN THE SEVERANCE PACKAGE AND WHEN NEEDED HAND OUT TISSUE SOME DAYS SHE DID DOZENS OF FIRINGS SOON THE MERE SIGHT OF HER GETTING OFF THE ELEVATOR WOULD SEND A TREMOR AROUND THE FLOOR ONE SOONTOBEFIRED BANKER BLURTED OUT OH MY GOD IT'S THE ANGEL OF DEATH' UPON SIGHTING MS MELBO THAT DAY I WENT HOME AND TOLD MY HUSBAND I'VE DONE ENOUGH' SHE SAYS SHE LEFT THE BANK IN JUNE 1990 FIRST BANK A REGIONAL BANKHOLDING COMPANY WITH OPERATIONS IN SEVEN STATES ALMOST SEEMED TO ASK FOR THE GRUNDHOFER TREATMENT IN THE 1980S THENCHAIRMAN GEORGE DIXON CALLED FIRST BANK THE ENTERPRISE AND STEERED THE SHIP ON A NATIONAL LENDING BINGE THAT LED TO BIG LOSSES THE NEXT CHIEF HAMM'S BEER FAMILY SCION DH ANKENY JR PRESIDED OVER A MULTIBILLIONDOLLAR BONDMARKET GAMBLE THAT WENT BAD ALL THE WHILE COSTS WERE HIGH A CHASTENED BOARD OF DIRECTORS FOUND MR GRUNDHOFER AND APPOINTED HIM CHAIRMAN AND CHIEF EXECUTIVE IN JANUARY 1990 MR GRUNDHOFER LEARNED EARLY ON THAT BANKING ISN'T ENTIRELY A GENTLEMAN'S BUSINESS ABOUT 30 YEARS AGO WORKING AS A CLERK FOR UNION BANK OF LOS ANGELES HE WAS TRYING TO REPOSSESS A CAR WHEN ITS OWNER A DELINQUENT BORROWER OPENED FIRE THE BULLETS MISSED BUT THE INCIDENT HELPED PERSUADE MR GRUNDHOFER TO GO BACK TO SCHOOL FOR A MASTERS IN FINANCE THE SON OF A BARTENDER AND A MAID HE STRUGGLED MORE THAN MANY OF HIS CONTEMPORARIES IN GLENDALE CALIF WE SHOWED HIM HOW TO MAKE ENDS MEET SAYS HIS 81YEAROLD MOTHER LAURA GRUNDHOFER SHE RECALLS HOW HER ELDEST SON TOOK HER HANDS WHEN HIS FATHER ALSO JOHN HAD FALLEN ILL AND WAS BEING ADMINISTERED THE LAST RITES HE RECOVERED WE WON'T LOSE OUR HOUSE 16YEAROLD JACK TOLD HER WE'LL WORK TOGETHER TO HELP PUT SIBLINGS JOAN AND JERRY THROUGH SCHOOL HE WAS WORKING IN A DRYGOODS STORE AT THE TIME HIS PARENTS SAY THOSE YEARS HELPED MOLD MR GRUNDHOFER INTO A TOUGH BUSINESSMAN HE DOESN'T MESS AROUND BUSINESS IS BUSINESS SAYS HIS 82YEAROLD FATHER WITH A RASPY LAUGH THE ELDER MR GRUNDHOFER WHO EVENTUALLY WORKED HIS WAY UP TO STEAKHOUSE MANAGER IN CALIFORNIA PASSED ON TO JACK THIS FAMILY CANON DO YOUR JOB WELL BUT REMEMBER YOU CAN ALWAYS BE REPLACED IT WASN'T HARD TO REMEMBER JACK GRUNDHOFER SAYS HE FIRED HIS FIRST EMPLOYEE AS A 27YEAROLD REGIONAL VICE PRESIDENT AT UNION BANK IT WASN'T THAT TRAUMATIC IT WAS MY JOB THERE WAS A CAUSE SAYS MR GRUNDHOFER WHO HAS NEVER BEEN FIRED HIMSELF HE LEARNED MORE ABOUT FIRING AT WELLS FARGO WHERE HE WENT TO WORK AS AN EXECUTIVE VICE PRESIDENT IN 1978 UNDER CHAIRMAN CARL REICHARDT WELLS FARGO POPULARIZED THE NOTION THAT SIMPLY CUTTING COSTS CAN BE AN EFFECTIVE BUSINESS STRATEGY ON MAY 30 1986 THE DAY WELLS FARGO BOUGHT CROCKER NATIONAL CORP AND IMMEDIATELY FIRED 1600 MANAGERS MR GRUNDHOFER WAS ON HAND BECAUSE OF THE AGGRESSIVE COSTCUTTING CROCKER NATIONAL WAS ONE OF THE MOST SUCCESSFUL BANK ACQUISITIONS EVER THE LOGISTICS OF FIRING WHEN WHERE DOOR OPEN DOOR CLOSED DON'T MUCH MATTER MR GRUNDHOFER SAYS AS LONG AS YOU DON'T DRAG IT OUT OF COURSE THE BEST PLANNING WON'T STOP THE TEARS IT'S JUST PART OF THE PROCESS HE SAYS YOU HOPE IT DOESN'T GET OUT OF HAND BEFORE FIRING SOMEONE HE MAKES SURE HIS RESOLVE IS STRONG IT'S AN UNNATURAL ACT HE SAYS YOU'VE GOT TO FIRM YOURSELF ANY HALFWAY DECENT PERSON CAN EASILY BE TALKED OUT OF IT MR GRUNDHOFER ACKNOWLEDGES THAT WHEN PEOPLE ARE FIRED EN MASSE MERIT IS SOMETIMES OVERLOOKED WHEN YOU HAVE LAYOFFS THERE'S SOME VERY GOOD PEOPLE WHO END UP BEING FIRED HE SAYS YOU DON'T ALWAYS MAKE THE RIGHT DECISION ABOUT INDIVIDUAL PEOPLE THERE'S NO WAY THAT YOU CAN THOUGH MR GRUNDHOFER LEAVES THE FIRING TO OTHERS AT FIRST BANK HE HASTENS TO DEFEND HIS RECORD SAYING I'VE DONE IT LOTS OF TIMES IN THE PAST BESIDES HE SAYS AS CHIEF EXECUTIVE IT'S IMPORTANT FOR HIM TO KNOW IF A SUBORDINATE CAN HANDLE THE JOB IF YOU CAN'T DO IT FIRE PEOPLE THEN I DON'T NEED YOU MR GRUNDHOFER SAYS HE WASTED NO TIME AT FIRST BANK BESIDES FIRING 20 OF ITS WORKERS HE KNOCKED OFF HIGHRISK LENDING AND FOCUSED ON MARKETING LOANS AND SERVICES TO CONSUMERS AND SMALL BUSINESS THE STOCKY EXECUTIVE WHO WALKS WITH A STRUT AND BEARS A STARTLING LIKENESS TO WAYNE NEWTON WITHOUT THE MUSTACHE OVERSAW MANY LOAN APPROVALS HIMSELF IF YOU CAME TO ME WITH SOMETHING ILLOGICAL I'D BEAT YOU UP HE SAYS MR GRUNDHOFER'S FASTTALKING INYOURFACE STYLE DIDN'T ENDEAR HIM TO MANY PEOPLE IN MINNESOTA WHERE CALLING ATTENTION TO YOURSELF IS CONSIDERED IN POOR TASTE AS HE DESCRIBES HIS 3000BOTTLE WINE CELLAR MADE TO RESEMBLE SOMETHING HE SAW IN FRANCE A PUBLICRELATIONS ASSISTANT FIDGETS COMPARED WITH MINNESOTANS HE CUSSES A LOT MORE HE BOASTS A LOT MORE HE STARTS A LOT MORE SENTENCES WITH THE WORD I' THAT'S JUST NOT THE WAY IT'S DONE UP HERE SAYS A FORMER FIRST BANK EXECUTIVE FIRED DAYS AFTER MR GRUNDHOFER ARRIVED THERE IS A MINNESOTA NICE MR GRUNDHOFER SAYS TRYING NOT TO SOUND CONDESCENDING AT TIMES YOU HAVE TO DEAL WITH IT MR GRUNDHOFER BEGAN TRACKING FIRED EMPLOYEES BY SOCIAL SECURITY NUMBER BECAUSE SOME OF THEM IT SEEMED WOULDN'T STAY FIRED THEY'D GET REHIRED FOR A POST SOMEWHERE ELSE IN THE BANK EMOTIONS RAN HIGH AS THE FIRINGS CONTINUED BUT SOMETIMES THERE WAS NO SHOULDER TO CRY ON ONE DAY IN LATE 1990 THE PERSONNEL OFFICE WAS CROWDED WITH WEEPING PINKSLIP RECIPIENTS BUT LOUISE ROUTHE A PERSONNEL OFFICER NORMALLY DESIGNATED TO TALK PEOPLE THROUGH THEIR FIRING HAD JUST GOTTEN THE AX HERSELF ACCORDING TO PEOPLE IN THE DEPARTMENT ONE MORNING IN NOVEMBER 1990 AFTER THE WORST OF THE BLOODBATH MR GRUNDHOFER WAS KIDNAPPED AFTER THE EXECUTIVE HAD WHEELED HIS MERCEDES INTO FIRST BANK'S PARKING GARAGE A WELLDRESSED MIDDLEAGED MAN CONFRONTED HIM WITH A GUN MR GRUNDHOFER SWIFTLY KNOCKED IT AWAY THE TWO WRESTLED ON THE GARAGE FLOOR BUT THE ASSAILANT REGAINED CONTROL AND FORCED MR GRUNDHOFER TO DRIVE OUT OF TOWN DURING THE DRIVE THE KIDNAPPER FASTENED TO THE CHAIRMAN'S WRIST WHAT FBI AGENTS NOW BELIEVE WAS A FAKE BOMB AND ORDERED HIM TO CALL HIS SECRETARY ON THE CAR PHONE AND ASK FOR A 3 MILLION RANSOM WHEN THEY REACHED A WOODED AREA IN WISCONSIN THE ABDUCTOR TIED MR GRUNDHOFER'S HANDS TAPED HIS MOUTH AND FORCED HIM TO CLIMB INTO A SLEEPING BAG TYING THE CHAIRMAN TO A TREE HE TOLD HIM TO TRY TO GET SOME SLEEP AND LEFT WITH THE CAR THE CHAIRMAN TOLD THE FBI THAT THE ABDUCTOR HAD MORE THAN A PASSING KNOWLEDGE ABOUT MR GRUNDHOFER HIS FAMILY AND FIRST BANK SAYS NICHOLAS O'HARA AN FBI SPECIAL AGENT WE'RE LOOKING AT EXEMPLOYEES PEOPLE WITH A POSSIBLE ANIMOSITY TOWARD MR GRUNDHOFER MR GRUNDHOFER ESCAPED AND WALKED TO A FARMHOUSE NO RANSOM WAS PAID AND THE CASE IS UNSOLVED IN A LINEUP MR GRUNDHOFER PICKED OUT A MAN WHO WASN'T A FIRST BANK EMPLOYEE THERE WASN'T ENOUGH EVIDENCE TO MAKE AN ARREST MR GRUNDHOFER AND THE OTHER TOP EXECUTIVES HAVE FROZEN THEIR SALARIES OVER THE PAST THREE YEARS HE HAS A BASE SALARY OF 525000 AND ON TOP OF THAT HE HAD BONUSES AND OTHER PAYMENTS TOTALING 755119 IN 1991 HE ALSO HAS STOCK OPTIONS WORTH AN INDICATED 33 MILLION MR GRUNDHOFER TRAVELS BETWEEN FIRST BANK BRANCHES BY CORPORATE JET I CAN'T JUSTIFY THE COST HE CONFESSES AND NOW USES A LIMOUSINE WITH A BODYGUARD BUT HIS OFFICE IS A SHRINE TO AUSTERITY OF MODEST SIZE WITH THREE PLANTS HE PAID FOR HIMSELF AND WE WATER THEM OURSELVES DON'T WE HE SAYS TO HIS SECRETARY WHEN FIRST BANK MOVED ITS HEADQUARTERS INTO THIS BUILDING LAST SPRING EXECUTIVES FOUND THEY DIDN'T AUTOMATICALLY HAVE OFFICES WAITING FOR THEM ANYONE WHO WANTED ONE HAD TO MAKE A CASE IN WRITING FEW DARED THEY KNEW I'D PUT 'EM THROUGH THE GRIND THE CHAIRMAN SAYS NOW ONLY ABOUT 60 PEOPLE WHO PROVED THEY NEEDED PRIVACY HAVE OFFICES DOWN FROM ABOUT 400 BEFORE THE MOVE THE OTHERS LIKE INTERNATIONAL BANKING HEAD JOHN SC LEAVITT SIT IN CUBICLES FRAMED BY THE CLOTHCOVERED DIVIDERS MR LEAVITT RECALLS HIS OLD OFFICE THE BIG DESK THE CREDENZA BEHIND IT BOOKSHELVES ALONG ONE WALL THE CONFERENCE TABLE RINGED BY CHAIRS IT WAS AN ADJUSTMENT FOR ALL OF US LEARNING THE COURTESIES OF BEING IN A CUBE ENVIRONMENT MR LEAVITT SAYS MR GRUNDHOFER ALSO CLOSED FIRST BANK'S CAFETERIA AND EXECUTIVE DINING ROOM WE'RE NOT IN THE RESTAURANT BUSINESS HE SAYS THE FIRING HAS SLOWED NOW BUT IT WILL CONTINUE FIRST BANK RECENTLY ACQUIRED MARQUETTE BANK MINNEAPOLIS AND SAID IT WILL CUT PEOPLE WHOSE JOBS OVERLAP SEVERAL RECENTLY FIRED FIRST BANKERS NOW WORK AT MARQUETTE AND IT ISN'T FARFETCHED TO THINK THAT SOME OF THEM COULD END UP DISMISSED BY MR GRUNDHOFER TWICE IT WOULDN'T BE THE FIRST TIME SUCH A THING HAS HAPPENED MR GRUNDHOFER RECALLS FIRING A MAN YEARS AGO AT UNION BANK AND THEN FIRING HIM AGAIN AS A WELLS FARGO EXECUTIVE DURING THE CROCKER TAKEOVER THE POOR GUY HE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR I DON'T ENJOY FIRING PEOPLE' WSJ FEB 16 1993 9301110036 9302120192 930204 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9302120191 930212 LEISURE & ARTS ON SPORTS THE DIMAGGIO OF BOWLING BY FREDERICK C KLEIN A NICE THING ABOUT BEING A BOWLER IS THAT YOU NEVER HAVE TO RETIRE SO THIS WEEK DICK WEBER IS ROLLING WITH THE YOUNG FELLAS AT THE BUD LITE HALL OF FAME STOP ON THE PROFESSIONAL BOWLERS ASSOCIATION TOUR HE'S DOING IT HE TELLS YOU QUICKLY FOR OLD TIME'S SAKE RATHER THAN OUT OF ANY CONVICTION THAT A PAYCHECK COULD RESULT AND BECAUSE AS A ST LOUISAREA RESIDENT HE'S IN THE NEIGHBORHOOD ANYWAY BUT WHAT THE HECK YOU NEVER CAN TELL I COULD GET LUCKY HE GRINS THE PINS WON'T KNOW I'M 63 THE PINS DIDN'T KNOW THAT IN AUGUST WHEN WITH 25YEAROLD JUSTIN HROMEK WEBER WON THE TOURING PRO/SENIOR DOUBLES CHAMPIONSHIP IN BELLEVILLE ILL NOT ONLY WAS IT HIS 32ND FIRSTPLACE TROPHY IN A PBA COSPONSORED EVENT BUT IT ALSO MADE HIM THE FIRST MAN TO WIN SUCH TITLES IN FIVE DIFFERENT DECADES THE ESSENTIAL THING ABOUT WEBER THOUGH IS THAT ANYTHING HE STILL MIGHT ACCOMPLISH OR ANYTHING HE'S DONE IN THE PAST 20 YEARS FOR THAT MATTER CAN'T DO MUCH TO FURTHER POLISH HIS LEGEND MANY WHO FOLLOW THE SPORT THINK THAT DON CARTER EARL ANTHONY AND DICK WEBER WERE THE BEST EVER TO TOPPLE THE TENS ALTHOUGH THERE IS SOME DISAGREEMENT ABOUT HOW TO RANK THEM FOR THOSE WHO DON'T FOLLOW THE SPORT A BASEBALL COMPARISON MIGHT BE HELPFUL IF WEBER HAD BEEN A BASEBALL PLAYER HE'D HAVE BEEN JOE DIMAGGIO TRIM COOL AND STYLISH BUT DON'T TAKE THAT TOO FAR TRIM FOR THE YOUNG DIMAG WAS ABOUT 190 POUNDS WHILE THE YOUNG WEBER CARRIED ONLY 130 OR SO POUNDS ON HIS 5FOOT10INCH FRAME THAT HE COULD SWING A 16POUND BALL SO GRACEFULLY TESTIFIES TO THE IMPORTANCE OF BALANCE AND RHYTHM IN BOWLING WEBER TODAY WEIGHS ABOUT 170 POUNDS THAT'S NOT SO BAD AND THERE ARE GOLD STRANDS AMONG THE SILVER ATOP HIS HEAD BUT WHILE HE'S A REGULAR ON THE 14STOP PBA SENIOR TOUR FOR BOWLERS 50 AND OLDER HE HAS NOT ESCAPED THE YEARS UNSCATHED I WAS BOWLING IN A SENIORS' TOURNEY NEAR ORLANDO FLA IN OCTOBER 1991 AND WOKE UP ONE MORNING WITH A BAD HEADACHE AND LEG PAINS HE SAYS I BOWLED ANYWAY THAT DAY BUT NOT WELL I FELL TO SIXTH PLACE FROM THIRD AND FELT SO BAD THAT I CHECKED INTO A HOSPITAL WHEN I WAS DONE THE DOCTORS DID SOME TESTS AND TOLD ME I'D SUFFERED A SLIGHT STROKE I WAS OUT IN A WEEK FEELING PRETTY GOOD AND WAS BOWLING AGAIN RIGHT AWAY ALTHOUGH I STILL HAVE SOME NUMBNESS IN MY RIGHT LEG FORTUNATELY HE ADDS MY LEFT LEG IS FINE THAT'S MY SLIDING LEG YOU KNOW WEBER STILL TAKES TO THE LANES ALMOST DAILY AS HE HAS DONE SINCE HE TOOK UP BOWLING AS A LAD IN HIS NATIVE INDIANAPOLIS BY AGE 16 HE WAS ENOUGH OF A PRO TO BE DECLARED INELIGIBLE FOR HIS HIGH SCHOOL BASEBALL TEAM AT AGE 24 HE SHOWED UP AT THE ALLSTAR TOURNAMENT IN CHICAGO PRECURSOR TO TODAY'S US OPEN AND DID WELL ENOUGH TO GET A BID TO JOIN THE FAMOUS BUDWEISER TEAM IN ST LOUIS HE RECALLS THAT THE OFFER CARRIED AN ANNUAL BASE SALARY OF 3600 100 LESS THAN HE WAS EARNING AS A POSTAL CLERK AND THAT HIS FATHER THOUGHT HE SHOULD STICK WITH THE SECURITY OF A CIVIL SERVICE CAREER BUT OFF TO ST LOUIS WEBER WENT JOINING A TEAM THAT ALSO ENLISTED CARTER RAY BLUTH PAT PATTERSON AND TOM HENNESSY AND IS GENERALLY REGARDED AS THE ALLTIME BEST HANGING IN THE LOUNGE OF THE BOWLING CENTER IN ST CHARLES MO OWNED BY WEBER'S SONS RICH AND JOHN IS A REPLICA OF THE SCORESHEET OF THE 15GAME TALLY OF 3858 THAT TEAM BUD POSTED ON MARCH 12 1958 THAT'S STILL A RECORD THE PBA TOUR AND THE CURRENT ERA OF INDIVIDUAL PLAY WAS LAUNCHED WITH THREE EVENTS IN 1959 AND WHILE THE INAUGURAL WAS WON BY WRONG FOOT LOU CAMPI SO NICKNAMED BECAUSE HE WAS A RIGHTHANDER WHO SOMEHOW THREW OFF HIS RIGHT FOOT WEBER CAPTURED THE SECOND AND THIRD OUTINGS AND THE FOURTH TO LEAD OFF 1960 HIS 26 PBA TITLES INCLUDE FOUR ALLSTAR/US OPEN CROWNS AND HE'S WON SIX TIMES ON THE SENIOR TOUR WHEN WEBER ISN'T BOWLING THESE DAYS HE'S INVOLVED IN ONE WAY OR ANOTHER WITH HIS SONS RICH 42 JOHN 34 AND PETE 30 RICH IS TOURNAMENT DIRECTOR FOR THE SENIOR TOUR JOHN AND HIS FATHER ARE MIDWEST DIRECTORS OF THE PBA IN WHICH CAPACITY THEY HELP STAGE REGIONAL TOURNAMENTS THAT SERVE AS FEEDERS FOR THE MAJOR CIRCUIT PETE SLIM AS HIS DAD WAS AS A YOUNGER MAN BUT MUSTACHED IS A PBA TOUR STANDOUT WHO'S WON 19 TITLES INCLUDING A US OPEN CHAMPIONSHIP ALL THREE WEBER BOYS WERE TOURNAMENT BOWLERS SISTER PAULA DARMON AND MOM JUANITA BOWL TOO BUT RICH AND JOHN DIDN'T TAKE TO LIFE ON THE ROAD AND QUIT WEBER SAYS IF HE HAD IT TO DO OVER HE WOULDN'T HAVE NAMED HIS FIRSTBORN AFTER HIMSELF THE COMPARISONS WITH ME BOTHERED RICH THE MOST AND I THINK HIS NAME HAD SOMETHING TO DO WITH THAT HE REMARKS QUIETLY PETE HAD NO SUCH PROBLEM HIS ATTITUDE ALWAYS WAS THAT HE WAS A BETTER BOWLER THAN HIS OLD MAN AND I THINK HE IS WEBER SAYS WE BOTH THRIVE ON PRESSURE AND HAVE THE ABILITY TO ADJUST TO CONDITIONS HE HAS MORE NATURAL TALENT THAN I DID THOUGH AND HE'S BEATING MORE GOOD BOWLERS THAN I HAD TO FACE IT'S A MEASURE OF PROFESSIONAL BOWLING'S ECONOMIC PROGRESS THAT IN HIS DOZEN YEARS ON TOUR PETE'S 1428362 IN OFFICIAL PRIZE MONEY IS NEARLY DOUBLE THE 896134 THAT WEBER HAS WON IN 33 YEARS BUT WEBER STILL SHAKES HIS HEAD OVER HIS GAME'S FAILURE TO SHARE MORE FULLY IN THE CURRENT SPORTS BOOM BETTER PROMOTION WOULD HELP HE SAYS SO TOO MIGHT AN EFFORT TO EDUCATE THE PUBLIC ON THE DIFFICULTIES THE BOWLING PROS FACE PEOPLE WHO BOWL IN A LEAGUE ALWAYS AT THE SAME PLACE CAN'T UNDERSTAND HOW DIFFERENT THINGS CAN BE FROM WEEK TO WEEK ON THE TOUR HE SAYS BUT I GUESS IF TELLING THEM THAT OVER AND OVER DID ANY GOOD THEY'D KNOW IT ALREADY THERE IS HOWEVER SOMETHING TO BE SAID FOR A SPORT IN WHICH AT ITS HALL OF FAME TOURNAMENT NEAR THE CITY ST LOUIS WHERE THE HALL STANDS HALL MEMBERS LIKE WEBER CAN RUB ELBOWS WITH FANS AND FELLOW COMPETITORS I'LL KEEP BOWLING COMPETITIVELY AS LONG AS I THINK I CAN WIN HE DECLARES AND HOW LONG MIGHT THAT BE OH HE SAYS 30 OR 35 MORE YEARS 9302120190 930212 FOODMAKER STRUGGLING AFTER POISONINGS BREAKS WITH ITS PUBLIC RELATIONS FIRM BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL FOODMAKER INC STRUGGLING IN THE WAKE OF POISONINGS AT SOME OF ITS JACK IN THE BOX RESTAURANTS HAS SPLIT WITH PUBLICRELATIONS COUNSEL FLEISHMANHILLARD INC OVER WHAT BOTH COMPANIES CALL DIFFERENCES OF OPINION FOODMAKER PREPARING TO ANSWER QUESTIONS ABOUT THE ISSUE AT ITS ANNUAL MEETING TODAY IN SAN DIEGO HAS BEEN CRITICIZED FOR FAILING TO CONFRONT ISSUES RELATED TO THE OUTBREAK OF E COLI BACTERIAL INFECTIONS LAST MONTH ONE TWOYEAROLD TACOMA WASH BOY DIED AFTER EATING A CONTAMINATED JACK IN THE BOX HAMBURGER AND MORE THAN 450 OTHERS BECAME ILL AFTER CONSUMING THE TAINTED MEAT A FOODMAKER SPOKESWOMAN DECLINED TO DISCUSS SPECIFIC REASONS FOR THE BREAK WITH ST LOUISBASED FLEISHMANHILLARD EXCEPT TO CALL IT A MUTUAL DECISION IN LOS ANGELES FLEISHMANHILLARD GENERAL MANAGER JERRY EPSTEIN AGREED THE SPLIT WAS BY MUTUAL AGREEMENT IT RESULTED FROM A DIFFERENCE OF OPINION RELATED TO STRATEGIC DIRECTION HE SAID THE LOS ANGELES OFFICE HAS 45 OF THE AGENCY'S 600 TOTAL EMPLOYEES SEPARATELY WILEY BROOKS CO A FIVEPERSON SEATTLE PUBLICRELATIONS FIRM SPECIALIZING IN TROUBLED COMPANIES SAID IT WAS COORDINATING A SATELLITE HOOKUP WITH WASHINGTON STATE REPORTERS FOR A NEWS CONFERENCE WITH ROBERT NUGENT JACK IN THE BOX'S PRESIDENT WHO ALSO IS A FOODMAKER EXECUTIVE VICE PRESIDENT A WILEY BROOKS SPOKESMAN SAID FOODMAKER RETAINED IT JAN 29 OR 11 DAYS AFTER THE OUTBREAK BECAME PUBLIC HE SAID WILEY BROOKS IS FOCUSING EFFORTS ON WASHINGTON STATE AND ISN'T REPLACING FLEISHMANHILLARD AS THE MAIN COUNSEL FOR FOODMAKER THE BREAK WITH FLEISHMANHILLARD COMES AS JACK IN THE BOX HAS TRIED DESPERATELY TO FIGHT BAD PUBLICITY WITH A SERIES OF RADIO AND TELEVISION ADS CONCENTRATED IN ITS MAJOR MARKETS OF CALIFORNIA TEXAS ARIZONA AND WASHINGTON STATE THE COMPANY HAS MET PRIVATELY ALREADY WITH SOME INDIVIDUAL SHAREHOLDERS THE SPOKESWOMAN WHO WOULDN'T SAY WHAT THOSE HOLDERS WERE TOLD SAID THAT WHILE EXECUTIVES WILL ANSWER QUESTIONS AT THE ANNUAL MEETING ITS PURPOSE IS TO CONDUCT BUSINESS AS STATED IN OUR PROXY STATEMENT THE STATEMENT WAS PREPARED JAN 7 ABOUT A WEEK BEFORE THE OUTBREAK THE COMPANY'S STOCK WHICH FELL TO 950 FROM 13875 THE WEEK OF THE OUTBREAK CLOSED YESTERDAY AT 1025 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOODMAKER HAS SAID THAT JACK IN THE BOX SALES PLUNGED 30 TO 35 IN THE TWO WEEKS ENDED FEB 7 JACK GOODALL CHAIRMAN OF FOODMAKER MADE A SPECIAL APPEARANCE BEFORE FRANCHISEES MEETING TUESDAY IN SAN DIEGO SAID ABE ALIZADEH CHAIRMAN OF FOODMAKER'S FRANCHISEE ASSOCIATION FOODMAKER UNVEILED A FINANCIALRELIEF PACKAGE THAT MAY BE WORTH 10 MILLION TO FRANCHISEES MR ALIZADEH SAID ADDING I HAVE TAKEN THIS AS A SIGN OF COOPERATION AND CONCERN AND WILLINGNESS TO WORK WITH THE FRANCHISE COMMUNITY STANDARD & POOR'S CORP LAST WEEK REVISED ITS OUTLOOK ON FOODMAKER TO NEGATIVE FROM STABLE CITING THE COMPANY'S POTENTIAL UNINSURED LIABILITY ARISING FROM THE POISONINGS AN S&P SPOKESMAN SAID THE RATING SERVICE PROBABLY WILL MEET WITH FOODMAKER DURING THE NEXT 30 DAYS TO SEE WHAT IS HAPPENING TO SALES AT THE STORES BOTH NATIONALLY AND REGIONALLY AND GATHER INFORMATION ON LAWSUITS AND INSURANCE COVERAGE FOODMAKER HAS ABOUT 380 MILLION OF DEBT OUTSTANDING ONE QUESTION LIKELY TO BE RAISED AT THE SHAREHOLDER MEETING IS HOW FOODMAKER FAILED TO COMPLY WITH A MARCH 1992 CHANGE IN WASHINGTON STATE HEALTH POLICY INCREASING COOKING TEMPERATURES FOR HAMBURGERS TO 155 DEGREES FAHRENHEIT FOODMAKER INCREASED ITS COOKING TEMPERATURE FROM 140 DEGREES AFTER THE OUTBREAK I WOULD THINK ANY WELLMANAGED CORPORATION WOULD TAKE STEPS TO KEEP UP WITH THESE CHANGES IN THE LAW SAID DAVID VOGEL A PROFESSOR OF BUSINESS AND PUBLIC POLICY AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THERE'S NOT A HUGE AMOUNT OF REGULATION AFFECTING THEIR INDUSTRY SO TO FAIL TO DO SO IS INDEFENSIBLE 9302120189 930212 INTERNATIONAL DUTCH BANKRUPTCIES RISE 24 AMSTERDAM THE NUMBER OF DECLARED BANKRUPTCIES IN THE NETHERLANDS SURGED 24 IN 1992 TO 5044 THE CENTRAL BUREAU FOR STATISTICS SAID THE HAGUEBASED GOVERNMENT AGENCY ADDED THAT BANKRUPTCIES JUMPED 26 IN JANUARY 1993 FROM A YEAR EARLIER THE BUREAU SAID THE NUMBER OF BUSINESS BANKRUPTCIES INCREASED 26 TO 4367 LAST YEAR FROM 1991 9302120188 930212 THE SORCERY OF APPRENTICESHIP BY WILFRIED PREWO PRESIDENT CLINTON HAS TALKED ABOUT YOUTH TRAINING OR APPRENTICESHIP PROGRAMS AS PART OF HIS LARGER US INVESTMENT PROGRAM IN THIS THOUGHT MR CLINTON IS RIGHT ON TARGET BUT BUILDING AN APPRENTICESHIP PROGRAM NEED NOT MEAN AN EXTENSIVE WIDENING OF FEDERAL OR STATE BUREAUCRACY TO SEE HOW THIS IS SO IT IS WORTH TAKING A MOMENT TO REVIEW THE GERMAN APPRENTICESHIP MODEL THE GERMAN YOUTH APPRENTICESHIP SYSTEM MAY BE LARGE BUT IT IS BASED IN THE PRIVATE SECTOR TRAINING TAKES PLACE ON THE JOB THE TYPICAL APPRENTICE SPENDS FOUR DAYS A WEEK AT HIS TRAINING COMPANY AND ONE DAY IN PUBLIC VOCATIONAL SCHOOL APART FROM STATES FUNDING SCHOOLS AND FEDERAL LAW SETTING BROAD GUIDELINES GOVERNMENT IS NOT INVOLVED IN 1992 SOME 595000 GERMAN TEENAGERS BETWEEN THE AGES OF 15 AND 19 LEFT SCHOOL AND ENTERED AN APPRENTICESHIP PROGRAM CURRENTLY SOME 16 MILLION YOUNG PEOPLE OR 65 OF THE LABOR FORCE ARE ENROLLED IN APPRENTICESHIP PROGRAMS TYPICALLY TEENAGERS LEAVING SCHOOL SIGN A CONTRACT WITH AN EMPLOYER WHO WILL TRAIN THEM FOR TWO TO THREE YEARS IN ANY ONE OF SOME 380 OCCUPATIONS 36 BECOME CRAFTSMEN 22 INDUSTRIAL BLUECOLLAR WORKERS FOR EXAMPLE MACHINISTS OR CHEMICAL LAB ASSISTANTS 32 ARE IN OFFICE TRADE AND OTHER SERVICESECTOR OCCUPATIONS SALESPERSONS SECRETARIES BANKERS 8 IN THE PUBLIC SECTOR AND 1 IN AGRICULTURE APPRENTICES RECEIVE A SALARY OF 500 TO 800 A MONTH OR 20 TO 25 THE SALARY OF A CERTIFIED EMPLOYEE WHO HAS GRADUATED FROM AN APPRENTICESHIP PROGRAM TOGETHER CITY AND REGIONAL CHAMBERS OF INDUSTRY AND COMMERCE ORGANIZE THE SYSTEM THEY REGISTER THE APPRENTICESHIP CONTRACTS CERTIFY TRAINING COMPANIES REGULATE AND SUPERVISE THE PROGRAM SETTLE DISPUTES ESTABLISH EXAMINATION BOARDS STAFFED BY VOLUNTEERS ORGANIZE MIDTERM AND FINAL EXAMS 88 PASS AND ISSUE CERTIFICATES RECOGNIZED ALL OVER GERMANY AND INCREASINGLY ACROSS EUROPE IN THE HANOVER CHAMBER OF INDUSTRY AND COMMERCE WHERE I WORK WE CURRENTLY ADMINISTER 29000 APPRENTICES IN 166 OCCUPATIONS 18700 WHITECOLLAR 10300 BLUECOLLAR 7400 SUPERVISORS TRAIN THE TRAINEES IN 5300 PARTICIPATING COMPANIES LAST YEAR WE ADMINISTERED 12750 FINAL EXAMS WITH 6000 VOLUNTEER EXAMINERS AND ENROLLED 13000 NEW APPRENTICES OF OUR TOTAL CHAMBER STAFF OF 215 40 WORK IN THE TRAINING DEPARTMENT FOR MR CLINTON WHO FOCUSES ON THE UNDEREMPLOYMENT OF YOUNG PEOPLE THE GERMAN SYSTEM HAS BIG ATTRACTIONS ONE IS THE SEAMLESS TRANSITION FROM SCHOOL TO TRAINING TO WORK SOME 70 OF YOUNG GERMANS SIGN UP FOR APPRENTICESHIPS AND IF THEY PERFORM WELL GUARANTEED JOBS CONTRAST THIS WITH THE AIMLESS WANDERING FROM MINIMUMWAGE JOB TO MINIMUMWAGE JOB OF MANY AMERICAN HIGHSCHOOL GRADUATES AT AGE 25 AMERICANS WHO HAVE NOT ATTENDED COLLEGE OFTEN FIND THEMSELVES NO HIGHER UP THE JOB LADDER THAN THEY WERE AT AGE 18 THEIR GERMAN COUNTERPARTS BY CONTRAST USUALLY HOLD WELLPAYING SKILLED JOBS AMERICANS TRADITIONALLY HAVE WANTED A COLLEGE EDUCATION FOR THEIR CHILDREN AN IMPORTANT FACTOR IN THE GERMAN SUCCESS THOUGH IS RECOGNIZING THAT COLLEGE IS NOT ALWAYS THE ANSWER MANY JOBS IN FACT DO NOT CALL FOR A COSTLY COLLEGE EDUCATION THE AMERICA PROCOLLEGE BENT OFTEN YIELDS OVERQUALIFIED AND DIRECTIONLESS PEOPLE AN OTHERWISE UNEMPLOYED BIOLOGIST WORKS AS A CHEMISTRY LAB ASSISTANT IN GERMANY A LAB ASSISTANT IS A PERSON TRAINED AS SUCH THERE'S NO WASTEFUL ACADEMIC DETOUR THE GERMAN SYSTEM HOWEVER DOES NOT CLOSE THE DOOR ON EDUCATION IN THEIR LATE 20S ABOUT 10 OF EXAPPRENTICES ENROLL IN FURTHER TRAINING TO BECOME SUPERVISORS IN 1991 17000 SUCH GERMANS RECEIVED SUCH HIGHER CERTIFICATION IN INDUSTRIAL JOBS 16000 IN OFFICE JOBS THE CREAM OF THE ALUMNI CROP THEN TRAINS THE APPRENTICES IN THE WORKPLACE THE SYSTEM STRENGTHENS THE TRADITION OF INTERNAL ADVANCEMENT HILMAR KOPPER THE CHIEF EXECUTIVE OF DEUTSCHE BANK THE LARGEST IN GERMANY DOES NOT HAVE A UNIVERSITY DEGREE HE JOINED HIS BANK AFTER HIGH SCHOOL AS AN APPRENTICE WERNER NIEFER RETIRING PRESIDENT OF MERCEDES STARTED THERE 50 YEARS AGO AS A MECHANICS APPRENTICE FOR THE JOBSORIENTED MR CLINTON IT MIGHT BE WORTH NOTING THAT YOUTH TRAINING IS THE BEST UNEMPLOYMENT INSURANCE IN MAY 1992 GERMAN UNEMPLOYMENT WAS AT 62 BUT FOR THOSE WITH OCCUPATIONAL TRAINING ONLY 4 HERE YOUTH UNEMPLOYMENT IS BELOW THE GENERAL JOBLESS RATE A RELATIONSHIP THAT IS THE REVERSE IN MOST OTHER COUNTRIES IN THE US YOUTH JOBLESSNESS IS DOUBLE THE AVERAGE WHAT WORKS AND WHAT DOESN'T GERMANY'S CENTURIESLONG EXPERIENCE IN APPRENTICESHIPS HAS SHOWN YOUTH TRAINING WORKS BEST WHEN IT IS BASED IN THE WORKPLACE TEENAGERS PARTICULARLY LESSGIFTED TEENAGERS HAVE STRONG DOUBTS ABOUT THE RELEVANCE OF HIGHSCHOOL CLASSROOM WORK IN THE WORKPLACE YOUNG APPRENTICES ARE AMONG ADULT WORKERS SO THEY HAVE MODELS TO EMULATE THE REWARD FOR THEIR SUCCESSFUL WORK IS A CLEAR ONEAFTER CERTIFICATION A QUADRUPLING OF THEIR PAYCHECKS FOR EMPLOYERS THE SYSTEM HAS MANY ADVANTAGES CURRICULA CHANGE IN A BOTTOMUP PROCESS WITH TECHNOLOGY NOT TOPDOWN WHEN SCHOOL BOARDS THINK SO TRAINING DOES COST DEARLY IN 1991 GERMAN INDUSTRY SPENT 27 BILLION FOR EQUIPMENT COMPANY SUPERVISORS AND SALARIES FOR TRAINING THE 16 MILLION APPRENTICES SUBTRACTING THEIR CONTRIBUTION TO AN OUTPUT OF 10 BILLION THE NET COST WAS 17 BILLION OR 10500 PER APPRENTICE BUT FOR INDUSTRY THIS IS A WORTHWHILE INVESTMENT PROMISING LOWER TURNOVER THE EVIDENCE OF THEIR OWN ACCORD BUSINESSES OFFER 22 MORE APPRENTICESHIP SLOTS THAN THERE ARE APPLICANTS GERMANY OF COURSE IS NOT THE ONLY MASS MODEL DENMARK AUSTRIA AND SWITZERLAND ALSO HAVE GOOD SYSTEMS NOT EVERY DETAIL CAN BE TRANSPOSED TO AMERICA A COUNTRY WHOSE COMPANIES WOULD PROBABLY REQUIRE A SUBSTANTIVE TAX CREDIT TO BE ENTICED INTO UNDERTAKING TRAINING IN SIGNIFICANT NUMBERS CONCENTRATE THOUGH ON THE SALIENT FEATURES THE ADMINISTRATION SHOULD SET A NATIONAL FRAMEWORK OFFER TAX CREDITS AND ON THE STATE OR LOCAL LEVEL PROVIDE VOCATIONAL SCHOOLS OTHERWISE IT CAN AND SHOULD KEEP ITS HANDS OFF MR PREWO IS CHIEF EXECUTIVE OF THE CHAMBER OF INDUSTRY AND COMMERCE IN HANOVER GERMANY 9302120187 930212 INTERNATIONAL FIAT PLANS TEMPORARY LAYOFFS MILAN FIAT SPA SAID IT IS PLANNING TEMPORARY LAYOFFS FOR 24000 WORKERS AT SEVERAL PLANTS FROM MARCH 8 TO APRIL 9 THE ITALIAN AUTO MAKER SAID THE LAYOFFS WILL CUT PRODUCTION BY 23000 CARS IN THE PERIOD FIAT PREVIOUSLY SAID THAT THIS MONTH THE GROUP LAID OFF 31000 PEOPLE TO CUT CAR PRODUCTION BY 25000 UNITS THE LAYOFFS WILL INVOLVE FIAT PLANTS IN MIRAFIORI AND ARESE 9302120186 930212 AMERICA WEST TRAFFIC OFF PHOENIX AMERICA WEST AIRLINES REPORTED JANUARY TRAFFIC DOWN BY 16 FROM JANUARY 1992 THE AIRLINE FLEW 834500 REVENUE PASSENGER MILES COMPARED WITH 989502 LAST YEAR A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE 9302120185 930212 LTV IN PACT WITH BONDHOLDERS CLEVELAND LTV CORP SAID IT REACHED A TENTATIVE AGREEMENT WITH CERTAIN MAJOR HOLDERS OF ITS JONES & LAUGHLIN FIRST MORTGAGE BONDS BRINGING THE STEELMAKER CLOSER TO ITS PLAN TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROTECTION FROM CREDITORS IN JUNE LTV WHICH HAD BEEN IN A LONG DISPUTE WITH THE J&L HOLDERS SAID THE BONDHOLDERS WILL REIVE 199 MILLION IN CASH AND NEW COMMON STOCK THAT THE COMPANY EXPECTS TO BE VALUED AT 465 MILLION 9302120184 930212 CANADA TO AUCTION 625 BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION 18 BILLION CANADIAN DOLLARS US142 BILLION OF 625 BONDS WEDNESDAY THE BONDS WILL MATURE FEB 1 1998 PROCEEDS WILL BE USED TO REDEEM C13 BILLION OF BONDS MATURING MARCH 5 AND FOR GENERAL GOVERNMENT PURPOSES 9302120183 930212 CANADIAN STEEL OUTPUT OFF OTTAWA CANADIAN STEEL PRODUCTION TOTALED 260617 METRIC TONS IN THE WEEK ENDED SATURDAY DOWN 66 FROM 279074 TONS IN THE PRECEDING WEEK AND DOWN 95 FROM 287985 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS THE CUMULATIVE TOTAL IN 1993 WAS 1390322 TONS UP 14 FROM 1371365 TONS A YEAR EARLIER 9302120182 930212 INTERNATIONAL RHONEPOULENC SA PLAN PARIS FRENCH STATECONTROLLED CHEMICAL AND PHARMACEUTICAL GROUP RHONEPOULENC SA WILL BUY BACK SHARES OF ITS OWN DRUG UNIT RHONEPOULENC RORER SA IN THE COMING MONTHS TO BRING ITS STAKE BACK UP TO ITS ORIGINAL 6868 RHONEPOULENC'S SHARE HAD BEEN DILUTED TO 6663 AFTER RHONEPOULENC RORER'S PUBLIC SHARE EXCHANGE OFFER FOR LABORATOIRE ROGER BELLON AND THE EXERCISE OF STOCK OPTIONS BY THE UNIT'S OFFICERS AND DIRECTORS RHONEPOULENC SAID THAT IT WILL BE PURCHASING RHONEPOULENC RORER SHARES IN THE OPEN MARKET OVER THE NEXT TWO OR THREE MONTHS ON THE PARIS BOURSE AND POSSIBLY ON THE NEW YORK STOCK EXCHANGE 9302120181 930212 WHO'S NEWS JM PETERS CHIEF TO RETIRE NEWPORT BEACH CALIF JM PETERS CO SAID JAMES M PETERS CHIEF EXECUTIVE OFFICER AND PRESIDENT WILL RETIRE FEB 28 MR PETERS 57 YEARS OLD SAID HE HAD DELAYED HIS PLANNED 1990 RETIREMENT IN ORDER TO GUIDE THE HOME BUILDER HE FOUNDED THROUGH A PERIOD OF DIFFICULT ECONOMIC CONDITIONS AND TRANSITION HADI MAKARECHIAN 43 WILL SUCCEED MR PETERS AS CHIEF EXECUTIVE OFFICER WHILE CONTINUING AS CHAIRMAN DALE DOWERS 36 WILL SUCCEED MR PETERS AS PRESIDENT WHILE CONTINUING AS CHIEF OPERATING OFFICER SEPARATELY THE COMPANY SAID IT OBTAINED EQUITY AND CONSTRUCTION FINANCING FOR FOUR ORANGE COUNTY CALIF HOMEBUILDING PROJECTS JM PETERS WAS HURT BY THE SOUTHERN CALIFORNIA HOMEBUILDING SLUMP AND BY FINANCIAL PROBLEMS LINKED TO THE 1990 SEIZURE BY FEDERAL REGULATORS OF SAN JACINTO SAVINGS ASSOCIATION A TEXAS THRIFT THAT OWNED AN 86 STAKE IN THE COMPANY 9302120180 930212 VILLEROY & BOCH SALES UP METTLACH GERMANY CERAMICS MANUFACTURER VILLEROY & BOCH AG SAID 1992 GROUP SALES ROSE 53 TO 171 BILLION MARKS 103 BILLION FROM 162 BILLION MARKS IN 1991 THE COMPANY DIDN'T GIVE ANY INDICATION OF GROUP NET INCOME IN ITS STATEMENT RELEASED AHEAD OF FRANKFURT'S ANNUAL AMBIENTE CONSUMER GOODS FAIR THAT BEGINS TOMORROW FURTHER FINANCIAL INFORMATION WILL BE RELEASED AT THE COMPANY'S JUNE NEWS CONFERENCE A SPOKESMAN SAID HOWEVER VILLEROY & BOCH NOTED ITS 1992 TABLEWARE SALES FELL 19 TO 5132 MILLION MARKS FROM 523 MILLION IN THE PREVIOUS YEAR THE DEVELOPMENT WAS AN ABRUPT BREAK FROM AVERAGE ANNUAL GROWTH OF ABOUT 12 IN THE PAST 25 YEARS THE COMPANY SAID 9302120179 930212 REYNOLDS & REYNOLDS CO SHARES DAYTON OHIO REYNOLDS & REYNOLDS CO SAID ITS SHAREHOLDERS AGREED TO INCREASE THE NUMBER OF AUTHORIZED CLASS A COMMON SHARES TO 60 MILLION FROM 30 MILLION THE SUPPLIER OF INFORMATION PROCESSING SYSTEMS CURRENTLY HAS 235 MILLION SHARES OUTSTANDING A SPOKESMAN SAID THE COMPANY HAS NO IMMEDIATE PLANS FOR ACQUISITIONS OR STOCK SPLITS 9302120178 930212 HONG KONG'S US SURPLUS GAINS HONG KONG THE COLONY'S TRADE SURPLUS WITH THE US WIDENED 24 TO 14251 BILLION HONG KONG DOLLARS US1843 BILLION IN 1992 FROM HK11483 BILLION A YEAR EARLIER THE GOVERNMENT SAID IN DECEMBER HONG KONG'S TRADE SURPLUS WITH THE US SLIPPED 94 TO HK956 BILLION FROM HK1056 BILLION A YEAR AGO HONG KONG'S TOTAL EXPORTS TO THE US IN 1992 LEAPED 23 TO HK21310 BILLION FROM HK17367 BILLION IN 1991 WHILE DOMESTIC EXPORTS EDGED UP 28 TO HK6460 BILLION FROM HK6287 BILLION AND REEXPORTS SURGED 34 TO HK14850 BILLION FROM HK11080 BILLION IMPORTS FROM THE US ROSE 20 TO HK7059 BILLION FROM HK5884 BILLION 9302120177 930212 NORTHWEST AIR TRAFFIC GAINS ST PAUL MINN NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SAID ITS JANUARY TRAFFIC ROSE 7 TO 457 BILLION REVENUE PASSENGER MILES FROM 427 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE'S LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS OCCUPIED ROSE TO 612 FROM 599 A YEAR EARLIER 9302120176 930212 LETTERS TO THE EDITOR GREENPEACE'S SIMPLISTIC MANTRA GREENPEACE AND THOMAS BROWN IN THEIR JAN 20 LETTERS TO THE EDITOR REGARDING OUR HAZARDOUS WASTE INCINERATOR WASTE TECHNOLOGIES INDUSTRIES WTI IN EAST LIVERPOOL OHIO TOOK AN OPPORTUNITY ONCE AGAIN TO SPREAD MISTRUTHS ABOUT THE PLANT ITS SITING CRITERIA AND VON ROLL THE LETTERS WERE RESPONDING TO YOUR EDITORIALS ENVIRONMENTAL PREVIEW DEC 30 GORE ON A VON ROLL JAN 8 AND GREEN LIGHT FOR VON ROLL JAN 12 IT WAS HOWEVER GOOD TO SEE GREENPEACE COME CLEAN ON ITS REAL AGENDA IN ITS TWISTED APPROACH TO ENVIRONMENTAL RESPONSIBILITY GREENPEACE BELIEVES THAT BY KEEPING WTI AND OTHER ENDOFTHEPIPE FACILITIES FROM OPENING INDUSTRY WILL HAVE TO MODERNIZE A PROCESS THAT GREENPEACE SEEMS TO THINK WILL END THE USE OF TOXIC CHEMICALS IN MANUFACTURING THIS PERCEPTION IS BOTH SIMPLISTIC AND FARFETCHED OBVIOUSLY THE MANTRA OF A GROUP OF PEOPLE WHO KNOW LITTLE ABOUT MAKING ANYTHING EXCEPT RHETORIC BUT THOSE OF US WHO KNOW WHAT IT TAKES TO BUILD A CAR OR A COMPUTER OR EVEN GET CHICKEN FRYERS TO THE GROCER KNOW THE INTERPLAY OF CHEMICALS IN MANUFACTURING AND THE SERIOUSNESS OF HAVING A RESPONSIBLE WASTE MANAGEMENT PROGRAM THE RHETORIC ROUSERS ARE THE SAME PEOPLE WHO RECENTLY BUSED IN A COUPLE OF HUNDRED PEOPLE TO EAST LIVERPOOL FOR A RALLY AT THE PLANT'S GATE NOT A ONE OF THEM TREKKED IN TO SAVE THE ENVIRONMENT THE EXPENSE OF EXHAUST FUMES OR THE HAZARDOUS WASTE CREATED WHEN THEIR VEHICLES WERE MANUFACTURED THESE PEOPLE THINK THEY SPEAK FOR EAST LIVERPOOL THE COMMUNITY THAT INVITED IN VON ROLL AND ITS PARTNERS MORE THAN A DECADE AGO A COMMUNITY IN WHICH A LARGE PERCENTAGE ARE STRONG SUPPORTERS WITH OUR SINCERE APPRECIATION AMONG ITS ASSETS GREENPEACE IS MASTER OF THE GAME OF DECEPTION IT SAYS THERE IS PLENTY OF INCINERATOR CAPACITY CURRENTLY AVAILABLE YET OUR PLANT'S CAPACITY WAS PRESOLD BEFORE CONSTRUCTION BEGAN GREENPEACE HARPS THAT WTI IS IMPROPERLY PERMITTED YET NUMEROUS INVESTIGATIONS REVEAL THAT BOTH THE OHIO AND FEDERAL ENVIRONMENTAL PROTECTION AGENCIES VETTED WTI IN A RIGOROUS AND LEGAL PROCESS GREENPEACE HIGHLIGHTS THAT WTI IS IN A FLOOD PLAIN NEAR RESIDENCES AND A SCHOOL BUT NEGLECTS TO MENTION THAT SO ARE COALFIRED AND NUCLEAR POWER PLANTS STEEL MILLS AND AN OIL REFINERY OR THAT WTI HAS A FRACTION OF THE EMISSIONS OF THOSE FACILITIES NEVER IS IT EXPLAINED THAT WTI IS ELEVATED TO ABOVE THE 500YEAR WATERMARK THE OHIO EPA CONCLUDED IN 1991 THAT THERE IS NO ONE ELEMENT IN THE DESIGN OF THE FACILITY OR IN APPLICABLE LAWS AND REGULATIONS WHICH WOULD PRECLUDE THEIR WTI RECEIVING A PERMIT IF THE FACILITY WAS TO BE NEWLY PROPOSED TODAY NOWHERE IN GREENPEACE'S PROPAGANDA IS IT MENTIONED THAT THE LAND UPON WHICH WTI SITS AND IS CLEANING UP FROM PRIOR OWNERSHIP AT A HIGH COST HAS BEEN USED INDUSTRIALLY FOR MORE THAN 40 YEARS AND FOR FURTHER CLARIFICATION I MIGHT ADD THAT GREENPEACE SEEMS TO THINK WTI IS THE WORLD'S LARGEST INCINERATOR ACCORDING TO ENVIRONMENTAL INFORMATION DIGEST IT RANKS SEVENTH IN SIZE NATIONALLY GREENPEACE SCORED BIG AS IT RALLIED POLITICAL ALLIES DURING THE PREVIOUS ELECTION YEAR AND THERE HAS BEEN NO SHORTAGE OF POLITICIANS WILLING TO MAKE UP THEIR MINDS WITHOUT INPUT FROM US OR EVEN THE GOVERNMENT'S BEST TECHNICIANS GREENPEACE HAS CONVINCED POLITICIANS WITH THE SAME TACTICS THAT ARE USED WORLDWIDE CASTING DOUBT REGARDING OWNERSHIP RAISING SAFETY ISSUES AND SUGGESTING HARM TO THE ENVIRONMENT AND NOW AS WE HAVE WITNESSED ELSEWHERE THE BATTLE MOVES TO THE COURTROOM AS THE GROUP'S SCIENCE IS STYLED AND BLOWDRIED TO MEET ITS OBJECTIVE WE WAIT TO SEE IF SUPERSTITION WILL PREVAIL OVER SCIENCE AND INDUSTRY THE WORLD OVER IS WAITING TOO MANY FIND IT INCREDIBLE THAT THE DOWNTURN IN OUR PROGRESS BEGAN AFTER WE TOOK THE INITIATIVE TO ADD SOME ADDITIONAL POLLUTION CONTROL EQUIPMENT TO THE SYSTEM DESIGN ONE WOULD THINK IN A RATIONAL MOMENT THAT POLITICIANS AND THIS ENVIRONMENTAL ACTIVIST GROUP WOULD APPLAUD A COMPANY WITH OUR TRACK RECORD OF SOLVING ENVIRONMENTAL PROBLEMS FOR DOING EVERYTHING WE CAN TO BUILD THE VERY BEST 9302120174 930212 RUHRKOHLE PLANS FOR LAYOFFS ESSEN GERMANY COAL AND COKE PRODUCER RUHRKOHLE AG ANNOUNCED THAT IT WOULD LAY OFF 3300 MORE WORKERS THIS YEAR THAN HAD BEEN PLANNED FOR A TOTAL OF NEARLY 8000 JOBS RUHRKOHLE SAID PLUNGING DEMAND FOR ITS COKE PRODUCTION FROM THE GERMAN STEEL INDUSTRY FORCED IT TO CUT EMPLOYMENT A RUHRKOHLE SPOKESMAN SAID THAT A THIRD OF ALL THE COKE IT PRODUCED IN JANUARY HAD TO BE DUMPED WHICH HAD VIRTUALLY FILLED ITS SLAG HEAP CAPACITY THE COMPANY SAID IT WOULD CLOSE ITS ZOLLVEREIN COKEOVEN PLANT IN ESSEN BY THE END OF JUNE WHICH WOULD COST 1000 JOBS A FURTHER 2300 WILL DISAPPEAR WHEN IT MERGES TWO OF ITS MINING OPERATIONS IN THE RHINELAND AS OF JULY 1 A YEAR AND A HALF EARLIER THAN ORIGINALLY PLANNED GERMAN STEEL COMPANIES ARE SCALING BACK CAPACITY TO TRY TO HEAD OFF A FREEFALL IN PRICES AS WORLD STEEL DEMAND SLUMPS 9302120173 930212 PHONE CARRIER SCRAPS MINIMUM ON MERGER PRICE US LONG DISTANCE CITES RISK OF OVERDILUTION' AFTER STOCK FALLS 18 BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO US LONG DISTANCE CORP WHOSE STOCK PRICE FELL 18 AFTER IT ANNOUNCED A MAJOR STOCKSWAP ACQUISITION SAID IT WAS SCRAPPING THE MINIMUM 100 MILLION VALUATION ON THE TRANSACTION TO AVOID OVERDILUTION CHAIRMAN AND CHIEF EXECUTIVE PARRIS H HOLMES JR SAID THE COMPANY WHICH WOULD DOUBLE IN SIZE IF THE DEAL IS COMPLETED WAS CONCERNED THAT ARBITRAGE INVESTORS WERE DRIVING THE PRICE OF THE STOCK DOWN SO THEY WOULD RECEIVE MORE SHARES WHEN THE ACQUISITION IS COMPLETED THE 100 MILLION FLOOR ON THE DEAL CREATED A SITUATION WHERE THE MARKET COULD NOT REFLECT FAIR VALUE FOR BOTH COMPANIES HE SAID HE ADDED THAT HE DIDN'T HAVE ANY FIRM EVIDENCE OF ARBITRAGE DEALINGS ON JAN 14 THE REGIONAL LONGDISTANCE AND OPERATORSERVICES CONCERN SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE VALUEADDED COMMUNICATIONS INC OF CHICAGO BY ISSUING 062 SHARE OF US LONG DISTANCE FOR EACH OF VALUEADDED'S 94 MILLION SHARES OUTSTANDING AT THE TIME THE COMPANY ALSO MADE THE UNUSUAL DISCLOSURE THAT MR HOLMES TWICE PLEADED GUILTY TO GAMBLING CHARGES DURING THE LATE 1970S AND EARLY 1980S AND SERVED 10 MONTHS' PROBATION FOR BOOKMAKING ON FOOTBALL GAMES MR HOLMES WAS A PRIVATE INVESTOR AND WAS UNAFFILIATED WITH THE COMPANY AT THE TIME US LONG DISTANCE SHARES CLOSED THAT DAY IN NATIONAL OVERTHECOUNTER TRADING AT 1825 UNCHANGED THE COMPANY SAID IT ANTICIPATED ISSUING 59 MILLION NEW SHARES GIVING THE ACQUISITION A VALUE OF 1077 MILLION IN TRADING YESTERDAY US LONG DISTANCE SHARES CLOSED AT 16 REBOUNDING 125 CENTS AT THAT PRICE US LONG DISTANCE WOULD HAVE HAD TO ISSUE ADDITIONAL SHARES TO REACH THE 100 MILLION MINIMUM ON THE ACQUISITION THE STOCK HAD CLOSED AS LOW AS 15 A SHARE AFTER THE ANNOUNCEMENT OF THE ACQUISITION AGREEMENT VALUEADDED COMMUNICATIONS SHARES FELL 125 CENTS TO 9125 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY IN RETURN FOR SCRAPPING THE 100 MILLION PRICE FLOOR AND STICKING SIMPLY WITH THE PRICE OF 59 MILLION SHARES US LONG DISTANCE SAID IT AGREED TO RETURN PROFITS TO VALUEADDED COMMUNICATIONS IN THE EVENT THE MERGER FALLS APART FOR OPERATIONS ALREADY BEING TRANSFERRED TO US LONG DISTANCE VALUEADDED COMMUNICATIONS WHICH PROVIDES AUTOMATED CALL PROCESSING AND BILLING SERVICES TO LARGE TELEPHONESYSTEM USERS SUCH AS PRISONS HOTELS AND UNIVERSITIES IS IN THE PROCESS OF TRANSFERRING ITS LONGDISTANCE BILLING TO US LONG DISTANCE IN ANTICIPATION OF CLOSING THE DEAL MR HOLMES SAID 9302120171 930212 TURBULENCE IS ANTICIPATED FOR BRITISH AIR FISCAL 3RDQUARTER COULD BRING STOCK DOWN TO EARTH BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL PASSENGERS INCREASINGLY ARE TAKING TO THE SKIES WITH BRITISH AIRWAYS PLC BUT INVESTORS MAY WANT TO THINK TWICE BEFORE CLIMBING ON BOARD THE AIRLINE IN MANY WAYS LOOKS LIKE AN ATTRACTIVE INVESTMENT PASSENGER TRAFFIC GREW 103 IN DECEMBER FROM A YEAR EARLIER THE CARRIER'S RECENT BUYING SPREE INCLUDING ITS 300 MILLION INVESTMENT IN USAIR GROUP INC MEANS IT CAN COUNT ON NEW REVENUE FROM THE US FRANCE AUSTRALIA AND GERMANY SOON A RUSSIAN JOINT VENTURE WILL ADD TO THE AIRLINE'S GLOBAL NETWORK ALSO THE DEPRECIATION OF STERLING MAKES VISITING THE UK CHEAPER FOR FOREIGN TOURISTS AND BUSINESSMEN AND LOWERS THE AIRLINE'S SIZABLE DOMESTIC COSTS NO AIRLINE IN EUROPE HAS DONE MORE TO CUT COSTS DURING THE CURRENT RECESSION AND NONE HAS BEEN AS CONSISTENTLY PROFITABLE AS A RESULT BRITISH AIRWAYS APPEARS POISED TO TAKE OFF ESPECIALLY WHEN THE UK RECESSION ENDS MOST PEOPLE THINK BRITISH AIRWAYS STOCK MAY BE A GOOD RECOVERY PLAY AND YOU SHOULD BUY IT SAYS ANALYST PETER BERGIUS OF KLEINWORT BENSON SECURITIES BUT THERE ARE A NUMBER OF FACTORS TO CONSIDER BEFORE ISSUING THAT BUY ORDER FOR STARTERS THE THREAT OF FURTHER LEGAL ACTION BY VIRGIN GROUP PLC OVER BRITISH AIRWAYS'S DIRTY TRICKS CAMPAIGN HAS SOME ANALYSTS WORRIED THAT VIRGIN CHAIRMAN RICHARD BRANSON WILL ONLY BE SATISFIED WITH A LARGE PAYMENT A SETTLEMENT OF THAT MATTER IS EXPECTED IN DAYS US CARRIERS DELTA AIR LINES AMR CORP'S AMERICAN AIRLINES AND UAL CORP'S UNITED AIRLINES ARE BATTLING BRITISH AIRWAYS'S USAIR INVESTMENT THEY SAY THE INVESTMENT IS A REPACKAGED VERSION OF AN EARLIER 750 MILLION INVESTMENT PLAN WITHDRAWN IN THE FACE OF BUSH ADMINISTRATION OPPOSITION IN ADDITION BRITISH AIRWAYS TUESDAY WILL REPORT ITS RESULTS FOR THE THIRD QUARTER ENDED DEC 31 AND SOME ANALYSTS SAY THAT WHAT IS OFTEN CALLED THE WORLD'S MOST PROFITABLE AIRLINE MAY REPORT A LOSS YET THE STOCK CONTINUES TO TRADE WITHIN STRIKING DISTANCE OF ITS 52WEEK HIGH OF 315 PENCE 449 A POINT THAT ALSO WORRIES ANALYSTS WORST OF ALL ANALYSTS SAY AIRLINES ARE TAKING DELIVERY OF MANY OF THE PLANES THEY ORDERED IN THE BOOMING 1980S THAT MEANS CAPACITY WILL CONTINUE TO RISE AT AN ANNUAL RATE OF MORE THAN 10 AND WITH IT THE LEVEL OF PRICE COMPETITION WHICH IS EXPECTED TO KEEP PROFITS DOWN FOR SOME TIME THERE IS A FUNDAMENTAL PROBLEM NOTES MR BERGIUS WE'VE SEEN TRAFFIC RECOVERY COMING BACK FOR SEVERAL MONTHS BUT THE PRICES REMAIN LOW BRITISH AIRWAYS ITSELF SENT THE MARKETS A SUBTLE WARNING WHEN ANNOUNCING ITS DECEMBER TRAFFIC RESULTS THE AIRLINE NOTED THAT PREMIUM TRAFFIC THE NUMBER OF TRAVELERS BUYING HIGHPRICED FIRSTCLASS AND BUSINESSCLASS TICKETS FELL 3 IN THE THREE MONTHS ENDED DEC 31 IT IS ON THOSE TICKETS THAT AIRLINES TYPICALLY MAKE THE BULK OF THEIR PROFITS THAT WAS BRITISH AIRWAYS'S WAY OF SENDING A MESSAGE MR BERGIUS SAYS TO BE SURE FEW ANALYSTS ADVISE INVESTORS TO SELL AND THERE ARE BUYERS OUT THERE HELPING KEEP THE SHARE PRICE UP LONGTERM WE WILL BE SEEING SOME SUBSTANTIAL GAINS AND WE EXPECT BRITISH AIRWAYS'S STOCK TO BE AN OUTPERFORMER SAYS COUNTY NATWEST ANALYST MARK MCVICAR WHO POINTS OUT THAT THE AIRLINE IS DOING EVERYTHING RIGHT FROM CUTTING COSTS TO FORGING ALLIANCES FUNDAMENTALLY WE THINK THIS IS SOMETHING INVESTORS SHOULD BE HOLDING MR MCVICAR SAYS BUT EVEN HE ADMITS THAT THE COMING MONTHS WILL BE PRETTY BUMPY FOR THE STOCK THAT HAS MANY OF HIS LESS IRONNERVED COLLEAGUES SWITCHING THEIR BUY RECOMMENDATIONS TO A HOLD BARCLAYS DE ZOETE WEDD ANALYST IAN WILD SAYS HIS FIRM IS A NERVOUS HOLDER I'M FEELING A BIT NERVOUS ABOUT IT ECHOES SWISS BANK CORP'S JAMES HALSTEAD WHO ALSO RECOMMENDS A HOLD WHAT HAS THEIR IMMEDIATE ATTENTION IS THE PENDING ANNOUNCEMENT OF FISCAL THIRDQUARTER RESULTS THE QUARTER IS TYPICALLY ONE OF THE WEAKEST IN THE INDUSTRY AND ANALYSTS WORRY THAT BRITISH AIRWAYS WILL BE BRUISED BY THE INTENSE COMPETITION NEXT WEEK'S RESULTS WILL BE A BIT OF A MILESTONE SAYS MR HALSTEAD THE BIGGEST CAUSE FOR CONCERN OVER THE COMING RESULTS IS THE DECLINE IN PROFIT PER PASSENGER THE AIRLINE BARELY MAKES MONEY ON ITS EUROPEAN ROUTES AND DEPENDS HEAVILY ON LONGHAUL FLIGHTS FOR PROFIT BUT WITH COMPETITION OVER THE ATLANTIC OCEAN INTENSIFYING TICKET PRICES THERE REMAINED LOW KLM ROYAL DUTCH AIRLINES WIDELY REGARDED AS ONE OF EUROPE'S MOST EFFICIENT CARRIERS RECENTLY REPORTED ITS PROFIT PER PASSENGER DROPPED ABOUT 9 IN THE QUARTER ENDED DEC 31 MAKING MATTERS WORSE THE DEPRECIATION OF THE POUND IN OCTOBER HIT THE AIRLINE HARD IN SOME WAYS MORE THAN HALF THE AIRLINE'S REVENUE IS IN FOREIGN CURRENCY WHICH BRITISH AIRWAYS IMMEDIATELY CONVERTS INTO POUNDS ON THE FUTURES MARKET MUCH OF THAT REVENUE IS ADVANCE BOOKINGS SO THE FOREIGN CURRENCY ISN'T RECEIVED FOR SEVERAL DAYS WEEKS OR MONTHS AS A RESULT THE AIRLINE HAD AN ESTIMATED 600 MILLION 8556 MILLION OR MORE ON ITS BOOKS AT THE LESS ADVANTAGEOUS EXCHANGE RATE WHILE AT THE SAME TIME ITS DAYTODAY COSTS IN FOREIGN CURRENCIES IMMEDIATELY JUMPED SO WHILE THE DEPRECIATION WILL HELP IN THE LONG TERM IT HURTS THE COMING QUARTERLY FIGURES THOSE FIGURES ARE EXPECTED TO FALL ANYWHERE BETWEEN A LOSS OF 20 MILLION AND A PRETAX PROFIT OF 20 MILLION THAT COMPARES WITH A PRETAX PROFIT OF 100 MILLION IN THE YEAREARLIER PERIOD THERE'S MORE TO WORRY ABOUT AHEAD FOLLOWING TWO TERRIBLE YEARS OF PASSENGER TRAFFIC AIRLINES ARE ADDING PLANES TO THEIR FLEETS IN PREPARATION FOR TRAFFIC GROWTH THIS YEAR BRITISH AIRWAYS PLANS TO ADD 14 OR SO TO ITS CAPACITY THIS YEAR THIS IS QUITE A LOT OF CAPACITY WHEN EUROPE IS SLOWING DOWN AND PREMIUM TRAFFIC IS SLOWING DOWN SAYS MR BERGIUS PEOPLE THINK THAT WHEN TRAFFIC COMES BACK EVERYTHING WILL BE ALL RIGHT BUT THE TRAFFIC IS BACK AND EVERYTHING ISN'T ALL RIGHT ANALYSTS SAY THAT EVEN AFTER CUTTING COSTS BY ABOUT 400 MILLION OVER THE PAST TWO YEARS BRITISH AIRWAYS WILL HAVE TO CUT FURTHER TO STAY PROFITABLE OVER THE COMING 12 MONTHS BUT THERE MAY BE A SILVER LINING IF THE STOCK PRICE LOSES ALTITUDE AS COUNTY NATWEST'S MR MCVICAR SAYS AND MOST OF HIS COLLEAGUES AGREE BRITISH AIRWAYS IS BETTER POSITIONED FOR THE FUTURE THAN ALMOST ANY OF ITS COMPETITORS AND IF NEXT WEEK'S ANNOUNCEMENT SCARES AWAY THOSE INVESTORS WHO WERE EXPECTING A QUICK RECOVERY THEN BRITISH AIRWAYS STOCK MAY BECOME A CHEAP YET SOLID LONGTERM INVESTMENT IF THE SHARE PRICE HITS 250 PENCE ANALYSTS SUCH AS BARCLAY'S MR WILD SAY IT WILL BE A FIRSTCLASS TICKET AT ECONOMY PRICES 9302120170 930212 CORPORATE FOCUS PUBLIC SERVICE OF NEW MEXICO FACES TOUGH CHALLENGE STATE BILL WOULD FORCE COMPETITION AMONG UTILITIES FOR RETAIL CUSTOMERS BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL PUBLIC SERVICE OF NEW MEXICO CO MAY FACE THE STIFFEST CHALLENGE OF ITS TROUBLED EXISTENCE COMPETITION FROM OTHER ELECTRIC UTILITIES FOR ITS RETAIL CUSTOMERS IN A PREVIEW OF WHAT MANY INDUSTRY EXECUTIVES BELIEVE WILL HAPPEN ACROSS THE COUNTRY THE NEW MEXICO LEGISLATURE IS CONSIDERING A BILL THAT WOULD FORCE THE UTILITY TO FIGHT FOR CUSTOMERS WITH LOWERCOST POWER PRODUCERS BECAUSE OF PUBLIC SERVICE NEW MEXICO'S HIGH RATES THE UTILITY COULD LOSE A MAJORITY OF ITS 300000 RETAIL CUSTOMERS WHILE THE MOVEMENT TOWARD GREATER COMPETITION IS INDUSTRYWIDE WHAT GOT PUBLIC SERVICE NEW MEXICO INTO THIS FIX IS BAD BLOOD BETWEEN THE UTILITY AND ALBUQUERQUE ANIMOSITY GENERATED BY THE COMPANY'S 1980S DIVERSIFICATION OVEREXPANSION INTO UNNEEDED ELECTRICAL GENERATING CAPACITY AND ALLEGED WRONGDOING BY PREVIOUS OFFICERS WON'T GO AWAY THE COMPANY STUMBLED OVER POOR INVESTMENTS IN REAL ESTATE TELECOMMUNICATIONS AND AN ENORMOUS AMOUNT OF EXCESS EXPENSIVE GENERATING CAPACITY THAT CONTRIBUTED TO HIGH FIXED COSTS TODAY PUBLIC SERVICE NEW MEXICO'S PRICES FOR ELECTRICITY FAR HIGHER THAN MANY OTHERS IN NEIGHBORING STATES IRKS CUSTOMERS REGULATORS REFUSE TO LET THE COMPANY PASS ALONG TO CUSTOMERS THE COSTS OF BUILDING EXCESS POWERGENERATING PLANTS COMPETITION AMONG ELECTRIC UTILITIES HAS RECENTLY BEEN ALLOWED ON THE WHOLESALE LEVEL WHERE POWER PRODUCERS CAN COMPETE AMONG THEMSELVES TO SELL THEIR ELECTRICITY TO OTHER UTILITIES WHO IN TURN RESELL THE POWER ON THE RETAIL MARKET BUT THE WHOLESALE MARKET SO FAR CONSTITUTES A MINORITY OF UTILITIES' BUSINESS THE NOTION OF RETAIL COMPETITION LONG FOREIGN TO THE HEAVILY REGULATED ELECTRICAL UTILITY INDUSTRY IS NOW A REAL POSSIBILITY FOR NEW MEXICO AND EVENTUALLY ELSEWHERE ARMANDO OLIVERA VICE PRESIDENT FOR PLANNING AT FLORIDA POWER & LIGHT CO BASED IN NORTH PALM BEACH FLA FRETS THAT RETAIL COMPETITION COULD BECOME LAW WITH THE STROKE OF A PEN SUCH CHANGE IN THE STODGY UTILITY INDUSTRY HAS EXECUTIVES WORRIED THEY FORESEE WRENCHING ADJUSTMENTS IN THEIR RATES MARKETING EFFORTS AND MORE CAREFUL PLANNING OF WHERE TO GET FUTURE POWER SUPPLY IT WILL NO LONGER BE A MATTER OF BUILDING POWER PLANTS AND GETTING THOSE COSTS PASSED ALONG TO CUSTOMERS AS IN THE PAST THUS ELECTRIC UTILITIES MAY FIND THEY FACE UPHEAVALS SIMILAR TO THOSE EXPERIENCED BY THE DEREGULATED TELEPHONE AND NATURAL GAS INDUSTRIES THE NEW MEXICO BILL INTRODUCED BY TOM WRAY A STATE SENATOR WHO SAYS IT IS THE FIRST SUCH PROPOSAL IN ANY STATE WOULD ALLOW CITIES TO SOLICIT BIDS FROM VARIOUS ELECTRIC POWER GENERATORS EITHER UTILITIES OR THE NEW BREED OF INDEPENDENT PRODUCERS THE CITIES CAN CHOOSE THE CHEAPEST ONE AND MERELY PAY A FEE TO THE UTILITY WHOSE LINES ARE USED TO CARRY THE ELECTRICITY FROM SELLER TO USER THUS LOCAL UTILITIES WHO ARE BYPASSED IN FAVOR OF COMPETITORS WOULD BE REDUCED TO MERE TOLLTAKERS IN TYPICAL UTILITY INDUSTRY JARGON ITS OFFICIALS HAVE CHOSEN THE TERM WHEELING TO DESCRIBE THE CARRYING OF ELECTRICITY FROM ONE PLACE TO ANOTHER WHEELING OCCURS WHEN A THIRD UTILITY IS BETWEEN THE PRODUCER OF ELECTRICITY AND THE FINAL USER PUBLIC SERVICE OF NEW MEXICO AFTER INITIALLY OPPOSING THE IDEA OF COMPETITION FOR RETAIL RATES NOW IS SCRAMBLING TO ADJUST THE MERE SPECTER OF WHEELING PROMPTED THE UTILITY TO ANNOUNCE A MAJOR RESTRUCTURING LAST MONTH THE COMPANY SAID IT WILL LOWER RATES EVEN IF CONSIDERABLE PAIN IS INVOLVED SELL ASSETS REDUCE AND CHANGE MANAGEMENT LAY OFF EMPLOYEES AND WRITE DOWN OVERVALUED ASSETS WE THINK ITS BETTER TO GET OUT IN FRONT OF THIS SAID JOHN ACKERMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WE THINK RETAIL WHEELING WILL HAPPEN AND IGNORING IT WON'T MAKE IT GO AWAY HE SAID PUBLIC SERVICE OF NEW MEXICO CHARGES RATES THAT ARE WITH FEW EXCEPTIONS HIGHER THAN ITS NEIGHBORING UTILITIES NO OTHER BUSINESS IN THE WORLD MISMANAGES ITSELF AND THEN FORCES ITS CUSTOMERS TO BUY THEIR PRODUCT AT EXORBITANT PRICES SAID DEBORAH LATTIMORE ALBUQUERQUE CITY COUNCILOR AND LONGTIME FOE OF THE UTILITY THE ISSUE IS HIGH RATES AND THE COMPETITION NEEDED TO FIX THAT SAYS DUNCAN SCOTT STATE SENATOR OF NEW MEXICO ALBUQUERQUE CITY COUNCIL LOOKING FOR ALTERNATIVES TO PUBLIC SERVICE OF NEW MEXICO'S HIGH RATES ALLOWED THE UTILITY'S FRANCHISE TO EXPIRE IN JANUARY 1992 AND PASSED A LAW REQUIRING COMPETITIVE BIDDING BEFORE ANY COMPANY CAN AGAIN BECOME THE CITY'S OFFICIAL SUPPLIER OF ELECTRICITY HOWEVER THAT MEASURE DIDN'T BECOME EFFECTIVE BECAUSE THE UTILITY COULDN'T BE FORCED TO ALLOW OTHER COMPANIES TO USE ITS LINES TO SUPPLY ELECTRICITY PUBLIC SERVICE OF NEW MEXICO CURRENTLY CONTINUES TO SUPPLY POWER BUT IF MR WRAY'S WHEELING BILL BECOMES LAW THE CITY CAN GO AHEAD AND FIND CHEAPER SOURCES OF POWER AND HAVE PUBLIC SERVICE OF NEW MEXICO JUST BRING IT IN ON ITS LINES PUBLIC SERVICE OF NEW MEXICO TRIED TO GET THE COMPETITIVE BIDDING REQUIREMENT REPEALED THROUGH A SPECIAL ELECTION LAST DECEMBER BUT THE UTILITY'S EFFORT TO MAINTAIN ITS HOLD AS THE CITY'S OFFICIAL ELECTRIC COMPANY WAS DEFEATED BY A MARGIN OF 2TO1 CITY COUNCIL OPPONENTS OF THE UTILITY SAY THE DEFEAT SENDS A CLEAR MESSAGE FROM DISGRUNTLED RATEPAYERS WE'VE KIND OF HAD IT WITH THEM SAID LINDA STEWART POLICY ANALYST WITH THE ALBUQUERQUE CITY COUNCIL THE PUBLIC SERVICE OF NEW MEXICO BATTLE MAY DEVELOP INTO A LANDMARK LEGAL FIGHT THAT LASTS FOR YEARS AND GOES TO THE US SUPREME COURT SAYS ROBERT NORDHAUS AN ELECTRIC INDUSTRY ATTORNEY IN WASHINGTON THERE WILL BE A LONG LEGAL BATTLE BEFORE CONSUMERS ARE FREE TO SHOP AROUND FOR ELECTRICITY LIKE THEY DO LONGDISTANCE SERVICE SAYS MR NORDHAUS THE CONTENTION WILL LIKELY CENTER ON THE STATES' RIGHT TO REQUIRE RETAIL WHEELING WHEN CONGRESS GAVE THE FEDERAL ENERGY REGULATORY COMMISSION THE EXCLUSIVE AUTHORITY FOR WHEELING IN THE FEDERAL ENERGY POLICY ACT THE LANGUAGE OF THE ACT IS JUST TOO VAGUE TO PREDICT ANY OUTCOME HERE HE SAID WRITEDOWNS ON CERTAIN ASSETS WAS THE PRINCIPAL REASON FOR THE COMPANY'S BIG FOURTHQUARTER LOSS OF 1332 MILLION OR 323 A SHARE ANNOUNCED LAST WEEK THIS COMPARES WITH A NET OF 99000 OR BREAKING EVEN ON A PERSHARE BASIS FOR 1991'S QUARTER ALTHOUGH NEW MEXICO PUBLIC SERVICE WANTS TO MAKE ITS RATES MORE COMPETITIVE THE COMPANY'S COSTCUTTING PLANS AS UNVEILED SO FAR DON'T SEEM LIKELY TO DO IT THE GAP IS SO WIDE BETWEEN THE ALBUQUERQUE UTILITY'S RATES AND THEIR POSSIBLE COMPETITORS SAYS DAN SCOTTO A UTILITY BOND ANALYST AT DONALDSON LUFKIN & JENRETTE THE COMPANY IS LIMITED IN WHAT MEASURES IT CAN TAKE IT IS BOUND BY CERTAIN LEASE PAYMENTS ON ITS SHARE OF TWO NUCLEAR UNITS IN ARIZONA THOSE 77 MILLIONAYEAR CASH OUTLAYS WHICH ARE SCHEDULED TO INCREASE SEVERELY LIMIT PUBLIC SERVICE OF NEW MEXICO'S ABILITY TO COMPETE SAYS AL MAZZORANA ANALYST WITH FURMAN SELZ INC 9302120169 930212 SEARS ROEBUCK PLANS 4 BILLION IN RENOVATIONS RETAILER ALSO TELLS ANALYSTS IT WILL RAISE CAPITAL OF ALLSTATE BY 1 BILLION BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEARS ROEBUCK & CO PLANS TO SPEND 4 BILLION OVER THE NEXT FIVE YEARS TO RENOVATE 500 OF ITS DEPARTMENT STORES WITH THE BULK OF THE SPENDING TO COME IN THE NEXT THREE YEARS THE COMPANY SAID IT ALSO PLANS TO INCREASE THE CAPITAL OF ITS ALLSTATE INSURANCE UNIT 1 BILLION SEARS WILL RAISE 300 MILLION TO 600 MILLION OF THE NEW CAPITAL THROUGH A STOCK OFFERING A DEBT OFFERING OR A COMBINATION IT WILL RAISE THE REMAINDER BY KEEPING SOME OF THE PROCEEDS FROM THE SALE OF 20 OF ALLSTATE AND A TEMPORARY REDUCTION OF DIVIDENDS THAT ALLSTATE PAYS THE PARENT COMPANY THE RETAIL AND FINANCIAL SERVICES CONCERN IN ITS FIRST MAJOR ANALYSTS' PRESENTATION HERE IN FOUR YEARS ALSO DISCLOSED THAT IT IS AHEAD OF SCHEDULE IN EFFORTS TO DIVEST A PORTION OF ITS FINANCIAL SERVICES OPERATION COMPANY EXECUTIVES LAID OUT THEIR VISION OF THE NEW COMPANY THAT WILL EMERGE ONCE SEARS COMPLETES THE PLANNED SPINOFF OF ITS DEAN WITTER BROKERAGE UNIT THE OUTRIGHT SALE OF ITS COLDWELL BANKER REAL ESTATE GROUP AND THE SALE OF 20 OF ITS ALLSTATE INSURANCE UNIT STOCKS THAT COMPANY LAST YEAR WOULD HAVE HAD ANNUAL REVENUE OF ABOUT 523 BILLION IN CONTRAST TO SEARS'S TOTAL 1992 REVENUE OF 59 BILLION APPARENTLY ANALYSTS WERE PLEASED WITH SEARS'S THREEHOURLONG PRESENTATION SEARS SHARES WERE UP 150 AT 5150 IN LATE NEW YORK STOCK EXCHANGE TRADING THE TIMETABLE FOR THE REVAMPED SEARS IS NEARING SEARS EXPECTS ITS INITIAL PUBLIC OFFERING FOR DEAN WITTER WHICH WILL INCLUDE ONLY 20 OF ITS SHARES TO BE COMPLETED BEFORE THE END OF FEBRUARY DEAN WITTER WHICH INCLUDES SEARS'S DISCOVER CARD OPERATIONS STARTED ITS OWN ROADSHOW WEDNESDAY IN DENVER SEARS SAID IT WILL SPIN OFF THE REMAINDER OF DEAN WITTER IN THE FALL THE OTHER ELEMENTS OF THE DIVESTITURE ARE MOVING SWIFTLY AS WELL SEARS SAID THE ALLSTATE TRANSACTION SHOULD BE COMPLETED BY MIDSUMMER AND NEGOTIATIONS WITH SEVERAL BIDDERS FOR COLDWELL BANKER ARE ALREADY WELL INTO THE DUEDILIGENCE STAGE SEARS OFFICIALS SAID SEARS IS TURNING ITS ATTENTION TOWARD REVITALIZING ITS STORES AND OFFICIALS SAID THEY ARE STEPPING UP THE PACE OF THAT REMODERNIZATION PROGRAM THE COMPANY WHICH HAS 860 STORES BUT HAS ANNOUNCED PLANS TO CLOSE 113 UNPROFITABLE ONES HAS UPGRADED NEARLY 300 STORES IN THE PAST FOUR YEARS AND WILL UPGRADE MOST OF THE OTHER 500 STORES OVER THE NEXT THREE YEARS SEARS ALSO SAID THAT MOST OF THE STORE CLOSINGS WILL OCCUR BY THE END OF THE SECOND QUARTER OFFICIALS DISCLOSED SOME OTHER CHANGES IN ITS MERCHANDISING OPERATIONS THE COMPANY PLANS TO TAILOR MORE OF THE GOODS OFFERED AT EACH STORE TO THE ETHNIC MAKEUP OF THE COMMUNITY SERVED OTHER RETAILERS SUCH AS JC PENNEY CO AND KMART CORP ALREADY MADE SIMILAR MOVES SEARS PLANS TO OPEN SIX NEW DEPARTMENT STORES THIS YEAR AND 25 HOMELIFE STORES WHICH SELL FURNITURE AND HOUSEWARES PLANS TO STOP OFFERING MAJOR AUTO REPAIRS AT ITS TROUBLED AUTO CENTERS WILL PROMPT A 33 REDUCTION IN ITS WORK FORCE AT THE CENTERS OFFICIALS SAID SEARS PLANS TO EMPHASIZE THE SALE OF TIRES AND BATTERIES IN A RELATED MOVE SEARS OFFICIALS STROVE TO QUELL DISCONTENT IN THE INVESTMENT COMMUNITY OVER ITS 20 DIVIDEND CUT TO 40 CENTS A SHARE QUARTERLY FROM 50 CENTS A SHARE THEY ACKNOWLEDGED THAT THE DIVIDEND ACTION STIRRED CONFUSION BUT THEY MAINTAINED THAT THEY HADN'T PROMISED TO KEEP THE PAYOUT AT THE PRIOR LEVEL ONCE COMPLETING THE PLANNED DIVESTITURE IN ADDITION THEY INDICATED THAT DEAN WITTER ONCE IT IS SEPARATED IS THE PLACE TO LOOK FOR THE RESTORATION OF THE DIVIDEND ACCORDING TO THE PROSPECTUS COVERING THE DEAN WITTER SPINOFF THAT CONCERN'S DIVIDEND WILL BE EQUAL TO ONLY FOUR CENTS A SHARE OF THE CURRENT SEARS DIVIDEND BUT OFFICIALS SAID THAT AFTER THE SEPARATION THEY AND DEAN WITTER EXECUTIVES WILL REVIEW THEIR DIVIDEND POLICY TO DETERMINE THE PROPER LEVELS 9302120168 930212 AVNET CHAIRMAN SEES SHARP RISE IN YEAR'S NET MACHIZ ALSO EXPECTS SALES TO GROW 25 ON GAINS IN COMPUTER BUSINESS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL GREAT NECK NY AVNET INC ENCOURAGED BY STRENGTH IN THE COMPUTER BUSINESS AND A PICKUP IN THE ECONOMY IS COMFORTABLE WITH ANALYSTS' FORECASTS OF A SHARP GAIN IN NET INCOME FOR THE FISCAL YEAR ENDING JUNE 30 LEON MACHIZ CHAIRMAN AND CHIEF EXECUTIVE OF THE DISTRIBUTOR OF ELECTRONIC COMPONENTS AND COMPUTER PARTS SUCH AS SEMICONDUCTORS AND CONNECTORS SAID HE IS COMFORTABLE WITH ESTIMATES AVNET WILL EARN IN THE RANGE OF 195 TO 210 A SHARE OR 694 MILLION TO 748 MILLION IN ITS FISCAL YEAR A YEAR AGO AVNET HAD NET OF 505 MILLION OR 142 A SHARE IN ADDITION MR MACHIZ SAID HE EXPECTS AVNET SALES THIS YEAR TO TOTAL ABOUT 22 BILLION A 25 RISE FROM 176 BILLION THE SALES INCREASE THIS YEAR WILL BE LARGELY DRIVEN BY THE INCREASE IN COMPUTER SALES MR MACHIZ SAID ADDING THAT THERE IS EVIDENCE THAT A PICKUP IN THE ECONOMY IS HELPING ALTHOUGH MR MACHIZ DECLINED TO ESTIMATE RESULTS FOR THE THIRD QUARTER WHICH ENDS MARCH 26 HE SAID IT IS LOOKING VERY STRONG JANUARY WAS A VERY STRONG MONTH AND FEBRUARY IS LOOKING GOOD HE SAID MR MACHIZ SAID AVNET WHOSE ELECTRONICS MARKETING BUSINESS ACCOUNTS FOR 85 OF SALES EVENTUALLY PLANS TO EXIT FROM ITS CHANNEL MASTER BUSINESS WHICH MAKES TELEVISION ROOF ANTENNAS AND SATELLITE DISHES AND ACCOUNTS FOR ABOUT 125 MILLION OF SALES ONLY DISTRIBUTION WILL BE THE NAME OF THE GAME HE SAID INDICATING THE BUSINESS WOULD EITHER BE SPUN OFF OR SOLD AVNET'S TIME ELECTRONICS BUSINESS WHICH DISTRIBUTES CONNECTORS PRIMARILY TO MILITARY/AEROSPACE AND INDUSTRIAL ORIGINAL EQUIPMENT MAKERS HAS BEEN HURT BY CUTBACKS IN DEFENSE SPENDING BUT MR MACHIZ SAID THERE HAS BEEN AN UPTURN IN THAT BUSINESS IN THE PAST FEW MONTHS AS IT HAS FOCUSED MORE ON COMMERCIAL SALES HE SAID AVNET IS THE LARGEST US ELECTRONICS DISTRIBUTOR WITH MORE THAN 17 OF THE 98 BILLION US MARKET LAST YEAR ARROW ELECTRONICS INC ITS MAJOR COMPETITOR RECENTLY FORECAST 1992 SALES OF ABOUT 16 BILLION AND IN EXCESS OF 2 BILLION FOR 1993 AIDED BY ACQUISITIONS THE AVNET EXECUTIVE SAID HE EXPECTS THE INDUSTRY'S CONSOLIDATION TREND TO CONTINUE IN THE PAST 18 MONTHS AVNET HAS SPENT A LITTLE MORE THAN 100 MILLION ON EUROPEAN ACQUISITIONS AND PLANS TO CONTINUE BUYING BUSINESSES OUTSIDE THE US MR MACHIZ SAID THE COMPANY PLANS TO INVEST ABOUT 200 MILLION MORE ON FOREIGN PURCHASES AND TO REACH INTERNATIONAL SALES OF 1 BILLION BY THE END OF THE DECADE THE COMPANY'S EUROPEAN SALES THIS YEAR WILL BE 275 MILLION TO 300 MILLION HE SAID AVNET HAS AMPLE CASH TO FINANCE ACQUISITIONS ANY DIVIDEND INCREASE WOULD DEPEND ON EARNINGS HE SAID AND WOULDN'T BE CONSIDERED UNTIL THE COMPANY EARNS MORE THAN 2 A SHARE DISTRIBUTION IN EUROPE ISN'T AS CENTRALIZED AND COORDINATED AS IN THE US HE SAID GIVING THE COMPANY OPPORTUNITIES TO IMPROVE CUSTOMER SERVICE THERE AS WELL AS ACHIEVE EFFICIENCIES HE NOTED THAT A NUMBER OF AVNET'S SUPPLIERS AND CUSTOMERS WANT THE COMPANY TO HAVE A LARGER EUROPEAN PRESENCE AIDED BY INTENSE COMPUTER CONTROL OF INVENTORIES AS WELL AS AUTOMATIC PURCHASING AVNET HAS STREAMLINED ITS DISTRIBUTION SYSTEM INTO THREE MEGAWAREHOUSES IN THE US FROM THE 100 OR SO STORAGE FACILITIES AND SALES OFFICES MAINTAINED IN THE MID1980S AN AWFUL LOT OF OUR BUSINESS IS DONE ON A RELATIVELY SMALL NUMBER OF PARTS WITH A GOOD DEAL OF PREDICTABILITY HE NOTED AVNET SELLS TO ABOUT 130000 CUSTOMERS 9302120166 930212 WHO'S NEWS USG CORP USG CORP CHICAGO MATTHEW P GONRING 37 YEARS OLD FORMERLY DIRECTOR OF CORPORATE COMMUNICATIONS WAS NAMED VICE PRESIDENT CORPORATE COMMUNICATIONS A NEW POSITION EFFECTIVE MARCH 1 9302120165 930212 WHO'S NEWS CURTICEBURNS FOODS CURTICEBURNS FOODS ROCHESTER NY DENNIS M MULLEN 39 YEARS OLD WAS APPOINTED PRESIDENT OF THIS FOOD PROCESSING CONCERN'S COMSTOCK MICHIGAN FRUIT DIVISION MR MULLEN WHO WAS A SENIOR VICE PRESIDENT SUCCEEDS J WILLIAM PETTY 60 WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE EARLIER THIS WEEK 9302120164 930212 TRAFALGAR HOUSE PLANS RIGHTS ISSUE FOR 2916 MILLION SPECIAL TO THE WALL STREET JOURNAL LONDON TRAFALGAR HOUSE PLC SAID IT PLANS TO LAUNCH A 2045 MILLION 2916 MILLION RIGHTS ISSUE AND WATCHED ITS SHAREPRICE PLUNGE 14 IN RESPONSE TO ACCOMPANY THE RIGHTSISSUE PLANS THE BRITISH CONGLOMERATE SAID IT PROPOSES TO CUT ITS DIVIDEND PAYOUT FOR THE CURRENT FINANCIAL YEAR THAT ENDS SEPT 30 BY 46 TO 325 PENCE A SHARE FROM 60 PENCE A YEAR EARLIER THE PAYOUT IS TO BE FUNDED FROM RESERVES THE RIGHTS ISSUE MEANT TO HELP SHORE UP TRAFALGAR'S BALANCE SHEET OFFERS ONE NEW ORDINARY SHARE IN THE COMPANY FOR EVERY TWO ALREADY HELD AT 60 PENCE A SHARE A 32 DISCOUNT UNDER ITS 885 PENCE CLOSING PRICE ON THE LONDON STOCK EXCHANGE WEDNESDAY IN THURSDAY'S SESSION THE STOCK CLOSED AT 765 PENCE THE COMPANY SAID IT WOULD HAVE PREFERRED TO LAUNCH THE ISSUE TO COINCIDE WITH PROGRESS ON ASSET DISPOSALS AND RECOVERY IN ITS BUSINESSES BUT JUDGED IT PRUDENT TO LAUNCH IT EARLIER AS THE GENERAL ECONOMIC RECOVERY CONTINUES TO BE DELAYED THE CONGLOMERATE HAD BEEN WIDELY TIPPED TO LAUNCH A CASH CALL AFTER A SHARP DECLINE IN EARNINGS OVER THE LAST FEW YEARS TRAFALGAR HOUSE ALSO SAID IT'S MAKING A GENERAL PROVISION OF 20 MILLION WHEN IT ISSUES HALFYEAR EARNINGS IN MAY THIS IS TO COVER THE COST OF REDUNDANCY AND RELATED EXPENSES IN ITS RESTRUCTURING AS WELL AS FOR LOSSES ASSOCIATED WITH MINOR DISPOSALS CURRENTLY BEING PURSUED TRAFALGAR HOUSE ALSO SAID THAT IT WOULD ACCOUNT FOR PROPERTY WRITEDOWNS THE CONGLOMERATE SAID HONGKONG LAND HOLDINGS LTD WHICH LAST WEEK RAISED ITS STAKE IN TRAFALGAR HOUSE TO 201 HAS ALREADY AGREED TO TAKE UP ITS FULL ALLOTMENT OF THE RIGHTS ISSUE HONGKONG LAND IS A UNIT OF THE JARDINE GROUP THE BALANCE OF THE 3525 MILLION NEW SHARES BEING ISSUED HAS BEEN UNDERWRITTEN BY ROBERT FLEMING & CO SHOULD THE OUTSTANDING OPTION AGREEMENTS BE EXERCISED IN THE FULL HONGKONG LAND WOULD RAISE ITS STAKE IN TRAFALGAR HOUSE TO AROUND 272 AFTER THE RIGHTS ISSUE TRAFALGAR HOUSE SAID HONGKONG LAND HAS CONFIRMED IT IS SEEKING TO LIFT ITS STAKE TO 299 AND HAS AGREED TO HOLD IT BELOW THAT LEVEL UNLESS A THIRD PARTY SUBSEQUENTLY TENDERS FOR MORE THAN 15 OF THE COMPANY 9302120163 930212 INTERNATIONAL RUSSIA TURNS AWAY FROM NORTH KOREA END OF MILITARY PACT ADDS TO ECONOMIC AND SOCIAL ISOLATION OF PYONGYANG BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ANOTHER EDIFICE OF THE COLD WAR HAS COME CRASHING DOWN ON A TRIP THIS MONTH TO THE NORTH KOREAN CAPITAL OF PYONGYANG A RUSSIAN PRESIDENTIAL ENVOY SERVED NOTICE THAT MOSCOW WOULD NO LONGER HONOR THE MILITARY ALLIANCE IT HAS MAINTAINED WITH NORTH KOREA FOR 32 YEARS PYONGYANG WHICH CLINGS TO A TOTALITARIAN SYSTEM EVEN AS ITS SOCIALIST BRETHREN EMBRACE REFORM HAD NO CHOICE BUT TO AGREE THE KOREAN PENINSULA MAY BE THE ONLY PLACE IN THE WORLD WHERE ONE STILL SEES REMNANTS OF THE COLD WAR SAYS VALERI YERMOLOV HEAD OF THE RUSSIAN FOREIGN MINISTRY'S KOREA DEPARTMENT AND NORTH KOREA WAS THE LAST COUNTRY WITH WHICH RUSSIA HAD AN OUTDATED COLD WARERA TREATY BY PULLING OUT OF THE MILITARY ALLIANCE WHICH FORMS PART OF A 1961 COOPERATION TREATY THAT OTHERWISE REMAINS INTACT RUSSIA ABANDONS ITS PLEDGE TO SUPPORT PYONGYANG IF IT IS ATTACKED IN THE 1950S RUSSIA BACKED PYONGYANG IN THE KOREAN WAR AGAINST USLED UNITED NATIONS FORCES THE END OF THE MILITARY ALLIANCE IS THE LATEST BLOW FOR PYONGYANG WHICH HAS SEEN SUPPORT FROM ITS TWO KEY ALLIES RUSSIA AND CHINA DWINDLE IN RECENT YEARS BOTH NOW REQUIRE NORTH KOREA TO PAY WORLDMARKET PRICES IN HARD CURRENCY FOR IMPORTS OF RAW MATERIALS AND RUSSIA HAS CUT OFF SUBSIDIZED ARMS SALES THOUGH NORTH KOREA PUBLISHES FEW ECONOMIC STATISTICS THE COST OF THE CUTBACKS WAS EVIDENT TO MR YERMOLOV WHEN HE ACCOMPANIED RUSSIA'S PRESIDENTIAL ENVOY ON THE VISIT TO PYONGYANG AT NIGHT THE CITY'S STREET LIGHTS ARE UNLIT LEAVING THE CAPITAL EERILY DARK IT'S CLEAR PROOF THAT NORTH KOREA IS SUFFERING FROM SERIOUS ENERGY SHORTAGES HE CONCLUDES NORTH KOREA HAS BEEN HARDPRESSED TO IMPORT ANY OIL SINCE RUSSIA ITS MAJOR SUPPLIER BEGAN DEMANDING DOLLARS THE SOVIET UNION USED TO EXPORT AS MUCH AS 800000 TONS OF OIL A YEAR TO NORTH KOREA ON FAVORABLE BARTER TERMS LAST YEAR RUSSIAN TRADERS SOLD NORTH KOREA ONLY ABOUT 25000 TONS OVERALL TWOWAY TRADE FELL TO 600 MILLION LAST YEAR DOWN FROM 15 BILLION RUBLES WHICH AT THE TIME TRANSLATED INTO NEARLY 2 BILLION THREE YEARS AGO MOSCOW ALSO IS LEANING ON NORTH KOREA TO REPAY ITS DEBT TO RUSSIA WHICH TOTALS 33 BILLION HARDCURRENCY RUBLES EQUAL TO ABOUT 4 BILLION RUSSIA FINDING ITSELF IN THE UNUSUAL POSITION OF BEING AN INTERNATIONAL CREDITOR MOSCOW ITSELF OWES WORLD LENDERS 70 BILLION THAT IT CAN'T REPAY NONETHELESS IS ASKING PYONGYANG WHICH IS WOEFULLY SHORT OF HARD CURRENCY TO PAY UP OR RISK A FURTHER SLIDE IN RELATIONS NORTH KOREA FAILED TO REPAY THE 13 BILLION RUBLES THAT FELL DUE LAST YEAR ONE HAS TO PAY ONE'S DEBTS SAYS MR YERMOLOV NORTH KOREA HAS PROPOSED REPAYING PART OF ITS DEBT BY REEXPORTING TO RUSSIA JAPANESEMADE COMPUTER CHIPS NORTH KOREA APPARENTLY IMPORTS THE CHIPS FROM ETHNIC KOREAN TRADERS LIVING IN JAPAN MR YERMOLOV SAYS WHAT MOTIVATES MOSCOW'S NEW DEMANDS ON NORTH KOREA IS RUSSIA'S INCREASINGLY CLOSE TIES TO SOUTH KOREA RUSSIA NEEDS INVESTMENT AND SOUTH KOREAN COMPANIES ARE EAGER TO PLUNGE IN THE 1961 MILITARY ALLIANCE WHICH WOULD HAVE REQUIRED MOSCOW TO SUPPORT PYONGYANG IN CASE OF WAR WITH SEOUL NO LONGER MEETS EXISTING REALITIES MR YERMOLOV SAYS RUSSIAN PRESIDENT BORIS YELTSIN RECENTLY MADE HIS FIRST OFFICIAL VISIT TO SEOUL THE RUSSIAN FOREIGN MINISTRY'S KOREAN DESK REVEALS THE SHIFT INSTEAD OF THE ONCEUBIQUITOUS NORTH KOREAN CALENDARS MR YERMOLOV NOW DISPLAYS IN HIS OFFICE A SMALL SOUVENIR SOUTH KOREAN FLAG AND A BATHINGBEAUTY POSTER COURTESY OF SOUTH KOREAN INDUSTRIAL CONCERN GOLDSTAR UNLIKE THE SITUATION IN THE CASE OF IRAQ OR THE FORMER YUGOSLAVIA THERE HAS BEEN NO PUBLIC CRITICISM IN RUSSIA OF MOSCOW'S COOLING OF ITS TIES WITH PYONGYANG A ONCECLOSE ALLY RUSSIA'S CONSERVATIVE PARLIAMENT BOASTS A FIERCE PROSERBIA LOBBY AND SOME DELEGATES EVEN FLEW TO BAGHDAD TO SUPPORT SADDAM HUSSEIN AGAINST THE US THERE IS NO EVIDENCE OF A PROPYONGYANG FACTION NORTH KOREA'S STANDING WITH RUSSIA WAS FURTHER DAMAGED BY A SCANDAL THAT RECENTLY EMERGED IN THE RUSSIAN PRESS LAST FALL NORTH KOREAN DIPLOMATS TRIED TO RECRUIT 60 RUSSIAN SCIENTISTS TO HELP PYONGYANG MODERNIZE ITS MISSILES THE KOREANS REPORTEDLY OFFERED SALARIES OF AS MUCH AS 4000 A MONTH FAR ABOVE RUSSIAN SALARY LEVELS THE YELTSIN GOVERNMENT FOILED THE PLAN STOPPING THE SCIENTISTS AS THEY TRIED TO FLY OUT OF MOSCOW'S INTERNATIONAL AIRPORT IN ADDITION NORTH KOREA'S POSITION ON THE INSPECTION OF ITS NUCLEAR FACILITIES COULD WORSEN RELATIONS DESPITE RUSSIAN PRODDING DURING THE RECENT VISIT NORTH KOREA IS REFUSING TO ALLOW UN INVESTIGATORS TO INSPECT A BUILDING BELIEVED TO CONCEAL STORES OF RADIOACTIVE WASTE THAT MIGHT BE RELATED TO RESEARCH FOR THE PRODUCTION OF NUCLEAR WEAPONS IF A COMPROMISE CAN'T BE REACHED THE MATTER WILL BE REFERRED TO THE UN SECURITY COUNCIL SAYS MR YERMOLOV THAT COULD LEAD TO INTERNATIONAL SANCTIONS AGAINST NORTH KOREA 9302120162 930212 DR PEPPER BOTTLING TENDER OFFER DALLAS DR PEPPER BOTTLING CO OF TEXAS SAID ITS TENDER OFFER FOR ALL ITS OUTSTANDING SENIOR SUBORDINATED DISCOUNT NOTES DUE 1998 EXPIRED WEDNESDAY AND THAT 1547 MILLION PRINCIPAL AMOUNT OR 955 OF THE NOTES HAD BEEN TENDERED THE COMPANY EXPECTS TO MAKE PAYMENT NEXT THURSDAY EACH NOTEHOLDER WILL BE PAID 11225 FOR EACH 1000 PRINCIPAL AMOUNT THE TENDER OFFER WAS PART OF A RECAPITALIZATION PLAN BY THE COMPANY AND ITS PARENT DR PEPPER BOTTLING HOLDINGS INC 9302120161 930212 WHO'S NEWS CUMMINS ENGINE CO CUMMINS ENGINE CO COLUMBUS IND JAMES D DONALDSON VICE PRESIDENT AND GENERAL MANAGER OF TRUCK OPERATIONS AT FORD MOTOR CO AND DANA G MEAD PRESIDENT AND CHIEF OPERATING OFFICER OF TENNECO INC WERE NAMED DIRECTORS OF THIS MAKER OF DIESEL ENGINES BOARD MEMBERSHIP WAS INCREASED TO 16 9302120160 930212 FEDERAL EXPRESS PACKAGE VOLUME MEMPHIS TENN FEDERAL EXPRESS CORP POSTED A 15 RISE IN PACKAGE VOLUME FOR JANUARY SLOWER THAN THE 18 GAINS OF THE PREVIOUS EIGHT MONTHS THE LOWER JANUARY FIGURE REFLECTED A SEASONALLY SLOW PERIOD THAT SHOWED WEAKENING GAINS IN THE LUCRATIVE NEXTMORNING DELIVERY SERVICE AVERAGE DAILY PACKAGE VOLUME FOR PRIORITY OVERNIGHT DELIVERIES ROSE JUST 5 IN JANUARY COMPARED WITH AN 8 GAIN IN THE PAST EIGHT MONTHS THE FISCAL YEARTODATE AFTERNOON DELIVERIES AND TWODAY DELIVERIES POSTED BIGGER GAINS 9302120159 930212 MONUS PLEADS INNOCENT CLEVELAND PHARMOR INC'S COFOUNDER AND FORMER PRESIDENT MICHAEL I MONUS WHO WAS RECENTLY INDICTED ON 129 FRAUD TAX AND MONEY LAUNDERING COUNTS ENTERED AN INNOCENT PLEA BEFORE A US MAGISTRATE SAID ASSISTANT US ATTORNEY JOHN D SAMMON MR MONUS WHO WAS RELEASED ON A 50000 BOND WAS ORDERED TO SURRENDER HIS PASSPORT AND TO LIMIT DOMESTIC TRAVEL TO BUSINESS TRIPS MR SAMMON SAID MR MONUS IS ACCUSED IN CONNECTION WITH AN ALLEGED 499 MILLION FRAUD AND EMBEZZLEMENT OF PHARMOR A DEEPDISCOUNT DRUGSTORE CHAIN BASED IN YOUNGSTOWN OHIO WHICH HAS FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION TWO OTHER FORMER EXECUTIVES WERE RECENTLY CHARGED IN THE SAME CASE BY THE US ATTORNEY'S OFFICE IN CLEVELAND 9302120158 930212 ECONOMY EMPLOYERS CAUTIOUS ABOUT RECOVERY OPT FOR OVERTIME INSTEAD OF NEW HIRES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL VISIT NEARLY ANY FRUIT OF THE LOOM INC PLANT ON A SATURDAY AND THERE'S A SENSE THAT MANUFACTURERS ARE STILL NERVOUS ABOUT THE STRENGTH OF THE RECOVERY DESPITE A PICKUP IN BUSINESS AT THE COMPANY'S FACTORIES AROUND THE COUNTRY ROUGHLY 15000 WORKERS HAVE BEEN COMING IN ON SATURDAYS TO WORK OVERTIME CUTTING AND SEWING CLOTH FOR UNDERWEAR SOCKS AND SWEATSHIRTS SO FRUIT OF THE LOOM CAN KEEP UP WITH GROWING DEMAND BUSINESS HAS PICKED UP SAYS CHAIRMAN WILLIAM FARLEY BUT WE ARE CAUTIOUS ABOUT ADDING ON TOO MANY WORKERS AND HAVING THE RECOVERY STALL AND THAT HAS MADE US LEAN MORE HEAVILY ON OVERTIME THAN WE HAVE IN THE PAST THE COMPANY ACTUALLY DID HIRE 3000 NEW EMPLOYEES LAST YEAR BUT MR FARLEY SAID FRUIT OF THE LOOM COULD HAVE EASILY HIRED SEVERAL THOUSAND MORE THE CAUTION PERSISTS DESPITE SIGNS THAT THE ECONOMY HAS TURNED THE CORNER CONSUMER SPENDING IS INCREASING STEADILY AND FACTORY ORDERS AND INDUSTRIAL PRODUCTION ARE GETTING A BIT OF SPUNK BUT EMPLOYERS REMAIN HESITANT HAVING SEEN EARLIER REBOUNDS FIZZLE OUT MANY SAY THEY'D LIKE TO SEE ANOTHER TWO OR THREE MONTHS OF ENCOURAGING STATISTICS THERE'S FURTHER UNCERTAINTY OVER PRESIDENT CLINTON'S ECONOMIC PLAN WHICH WILL BE UNVEILED WEDNESDAY THE LATEST EMPLOYMENT REPORT SHOWS THAT THE FACTORY WORKWEEK EDGED UP TO 414 HOURS IN JANUARY ADJUSTED FOR SEASONAL FACTORS THAT'S THE HIGHEST LEVEL IN MORE THAN 25 YEARS LONGER HOURS ARE BEING EXPERIENCED ACROSS A WIDE VARIETY OF INDUSTRIES BUT PARTICULARLY INDUSTRIAL MACHINERY AND EQUIPMENT PRIMARY METALS ELECTRONIC EQUIPMENT AND TRANSPORTATION PRODUCTS IN THE DURABLE GOODS SECTOR IN THE NONDURABLE GOODS SECTOR WORKERS AT TEXTILE MILLS PAPER PLANTS AND CHEMICAL FACILITIES ARE ALSO PUTTING IN LONG HOURS IN THE SHORT TERM PAYING WORKERS TIMEANDAHALF TO KEEP UP WITH DEMAND IS COSTEFFECTIVE ALTHOUGH THE HOURLY WAGES ARE HIGHER THE EMPLOYER AVOIDS THE SUBSTANTIAL COSTS OF PROVIDING BENEFITS FOR NEW WORKERS ALSO IF THE RECOVERY DOES SUBSIDE IT MEANS THAT HOURS CAN BE CUT BACK WITHOUT LAYING PEOPLE OFF BUT IN THE LONG TERM FACTORIES WILL HAVE TO ADD NEW HIRES SAYS NORTHERN TRUST CHIEF ECONOMIST ROBERT DEDERICK THAT'S BECAUSE AS EXISTING FACTORY EMPLOYEES WORK LONGER HOURS THEY TEND TO GET MENTALLY AND PHYSICALLY TIRED AND ERRORS ARE LIKELY TO INCREASE THAT WOULD DEFEAT THE PURPOSE IT IS IMPORTANT TO REMAIN EFFICIENT MR DEDERICK SAYS SIGNS THAT FACTORIES MAY HAVE MAXED OUT ON THEIR ABILITY TO RELY SOLELY ON OVERTIME TO KEEP UP WITH DEMAND IS ALREADY EVIDENT FROM OCTOBER TO JANUARY PRODUCTION JOBS GREW BY 93000 AFTER FALLING DURING MUCH OF THE SUMMER STILL ONCE FACTORIES BEGIN BRINGING IN MORE NEW HIRES THERE PROBABLY WON'T BE DRAMATIC JUMPS IN EMPLOYMENT THAT'S BECAUSE THE CORPORATE MINDSET HAS SHIFTED AND PRODUCTIVITY HAS BECOME THE BUZZWORD FOR STAYING COMPETITIVE WE EXPECT PRODUCTION TO GO UP FASTER THAN OUR WORK FORCE SAYS RICHARD MANOOGIAN CHAIRMAN OF MICHIGANBASED MASCO CORP AND MASCO INDUSTRIES WHICH MAKES FURNITURE AND KITCHEN AND BATHROOM PRODUCTS INCREASED EFFICIENCIES MEAN THAT WE WON'T BE HIRING PEOPLE AT THE PACE WE HAVE IN PREVIOUS RECOVERIES 9302120157 930212 LAW MAXWELL EXECUTORS FILE BANKRUPTCY PLANS IN US UK COURTS LONDON ADMINISTRATORS FOR MAXWELL COMMUNICATION CORP MOVING AHEAD IN DISSOLVING THE LATE ROBERT MAXWELL'S MEDIA EMPIRE SAID THEY FILED BANKRUPTCY REORGANIZATION PLANS FOR THE COMPANY IN US AND BRITISH COURTS THE PLAN NEGOTIATED BY US AND BRITISH LAWYERS OVERCOMES CONFLICTS BETWEEN THE TWO COUNTRIES' BANKRUPTCY LAWS BY USING SEVERAL NOVEL TECHNIQUES FOR EXAMPLE ALMOST ALL CREDITORS WILL BE PAID IN THE CURRENCY IN WHICH THEY ARE OWED USUALLY CREDITORS ARE PAID IN THE CURRENCY OF THE COUNTRY WHERE THE PLAN IS FILED ALSO IN A COMPROMISE THE PLAN PUSHES BACK THE BAR DATE BEYOND WHICH CLAIMS CAN NO LONGER BE FILED THE US BANKRUPTCY SYSTEM PROVIDES FOR SETTING BAR DATES WHEREAS THE ENGLISH SYSTEM DOESN'T AND CREDITORS NEED NOT FILE THEIR CLAIMS IN BOTH COURTS FILING IN EITHER COURT MAKES THEM ELIGIBLE UNDER THE PLAN NO EXACT FIGURES ARE YET KNOWN ABOUT TOTAL CLAIMS AND WHAT CREDITORS WILL ULTIMATELY GET BUT THERE IS MORE THAN 2 BILLION IN BANK DEBT STILL OUTSTANDING BY THE FORMER MAXWELL EMPIRE THE ADMINISTRATORS HAVE LONG SAID THEIR STRATEGY IS TO SELL VARIOUS OPERATING UNITS OF MAXWELL IN ORDER TO REPAY CREDITORS FORMER SHAREHOLDERS WILL GET NOTHING UNDER THE PLAN ACCORDING TO THE US ATTORNEYS FOR MAXWELL COMMUNICATIONS THE PLAN STILL HAS TO BE VOTED ON BY CREDITORS AND APPROVED BY THE BRITISH AND US COURTS PRICE WATERHOUSE THE COMPANY'S ADMINISTRATOR SAID A PROPOSED PLAN OF REORGANIZATION WAS FILED IN US BANKRUPTCY COURT IN NEW YORK AS PART OF MAXWELL'S CHAPTER 11 PROCEEDINGS SIMULTANEOUSLY A PROPOSED PLAN WAS FILED IN LONDON UNDER THE PLAN A US COURTAPPOINTED EXAMINER CONTINUES TO OVERSEE THE US OPERATIONS OF MAXWELL WHICH INCLUDE MACMILLAN INC AND OFFICIAL AIRLINE GUIDES INC THE PLAN PROVIDES A DETAILED MECHANISM FOR THE US EXAMINER AND BRITISH ADMINISTRATORS TO RESOLVE DIFFERENCES OVER TREATMENT OF CLAIMS IN THE TWO COURTS 9302120156 930212 WHO'S NEWS COLONIAL GAS CO COLONIAL GAS CO LOWELL MASS THE COMPANY INCREASED BOARD MEMBERSHIP TO 14 FROM 11 AS JOHN P HARRINGTON NICKOLAS STAVROPOULOS AND GEORGE E WIK WERE NAMED DIRECTORS MR HARRINGTON 50 YEARS OLD IS VICE PRESIDENT GAS SUPPLY OF COLONIAL GAS MR STAVROPOULOS 34 IS CHIEF FINANCIAL OFFICER AND VICE PRESIDENT FINANCE MR WIK 60 IS AN INDEPENDENT BUSINESS CONSULTANT TO SEVERAL UTILITY COMPANIES AND A FORMER VICE PRESIDENT OF THE PUBLIC UTILITIES DEPARTMENT OF CHASE MANHATTAN BANK COLONIAL IS A UTILITY 9302120155 930212 WHO'S NEWS BURLINGTON NORTHERN INC BURLINGTON NORTHERN INC FORT WORTH TEXAS WILLIAM W FRANCIS WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT INTEGRATED NETWORK MANAGEMENT AT THE BURLINGTON NORTHERN RAILROAD CO UNIT OF THIS TRANSPORTATION COMPANY MR FRANCIS 52 YEARS OLD HAS BEEN SENIOR VICE PRESIDENT INTEGRATED NETWORK MANAGEMENT SINCE 1990 9302120154 930212 INTERNATIONAL BRITISH PETROLEUM POSTS SHARP CLIMB IN 4THQUARTER NET BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH PETROLEUM CO POSTED HIGHER EARNINGS FOR THE SECOND CONSECUTIVE QUARTER LEADING ANALYSTS TO SAY THE COMPANY CONTINUES TO BE ON THE MEND AT THE END OF AN EVENTFUL YEAR BP SAID FOURTHQUARTER NET INCOME ROSE TO 193 MILLION 275 MILLION ON A REPLACEMENTCOST BASIS FROM 72 MILLION A YEAR EARLIER THE FIGURES PAINT AN ENCOURAGING PICTURE CHIEF EXECUTIVE DAVID SIMON SAID IN THE FIRST QUARTER OF 1992 BP REPORTED ITS FIRSTEVER INTERIM LOSS THAT WAS FOLLOWED BY THE OUSTER OF ROBERT HORTON AS CHAIRMAN AND CHIEF EXECUTIVE TAKING OVER AS CHIEF EXECUTIVE MR SIMON SLASHED THE DIVIDEND CUT STAFF AND MOVED RAPIDLY TO REIN IN COSTS FOR ALL OF 1992 BP REPORTED A LOSS OF 352 MILLION ON A REPLACEMENTCOST BASIS COMPARED WITH PROFIT OF 104 BILLION IN 1991 IN THE SECOND QUARTER OF 1992 THE COMPANY TOOK A CHARGE OF 919 MILLION TO COVER THE COSTS OF LAYOFFS AND ASSET WRITEOFFS THE REPLACEMENTCOST BASIS EXCLUDES GAINS AND LOSSES ON THE VALUE OF INVENTORIES BP SAID A GOOD PERFORMANCE IN ITS EXPLORATION AND PRODUCTION OPERATIONS LAST YEAR WAS MORE THAN OFFSET BY POOR MARGINS IN ITS REFINING AND CHEMICALS BUSINESSES MOREOVER ITS DEBTTOEQUITY RATIO ROSE TO 99 AT YEAR END FROM 88 AT THE END OF THE THIRD QUARTER ANALYSTS EXPRESSED CONCERN BUT THEY REASONED THAT THIS RESULTED FROM THE DOLLAR'S RISE AGAINST THE POUND RATHER THAN ANY MISMANAGEMENT THE COMPANY SAID THE OUTLOOK FOR OIL PRICES REMAINS UNCERTAIN MOREOVER BP EXPECTS REFINERY MARGINS IN THE US AND EUROPE TO DECLINE IN THE FIRST QUARTER BECAUSE OF HIGH STOCKS OF OIL PRODUCTS IT ALSO EXPECTS THE CHEMICALS BUSINESS TO REMAIN DEPRESSED BUT BP'S EFFORT TO CUTS COSTS AND DIVEST BUSINESSES CONTINUES FOURTHQUARTER REVENUE ROSE TO 1585 BILLION FROM 1565 BILLION A YEAR EARLIER FOR THE FULL YEAR REVENUE CLIMBED TO 5885 BILLION FROM 5773 BILLION 9302120153 930212 WHO'S NEWS OWENSCORNING FIBERGLAS CORP OWENSCORNING FIBERGLAS CORP TOLEDO OHIO WALKER LEWIS PRESIDENT OF AVON US WAS NAMED TO THIS GLASS FIBER MAKER'S BOARD FILLING A VACANCY 9302120152 930212 WHO'S NEWS COMDATA HOLDINGS CORP COMDATA HOLDINGS CORP BRENTWOOD TENN PHYLLIS HABERMAN 45 YEARS OLD WAS ELECTED TO THE BOARD OF THE INFORMATION SERVICES PROVIDER MS HABERMAN IS VICE PRESIDENT OF CHARTERHOUSE GROUP INTERNATIONAL INC A CLOSELY HELD INVESTMENT FIRM IN NEW YORK WHICH RECENTLY INVESTED IN COMDATA'S REFINANCING THE APPOINTMENT EXPANDS THE BOARD'S SIZE TO NINE MEMBERS 9302120151 930212 INTERNATIONAL ENERGY AGENCY ASKS FOR PROBE OF KOREAN FACILITY BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL ATOMIC ENERGY AGENCY FORMALLY REQUESTED ITS FIRSTEVER SPECIAL INSPECTION IN RESPONSE TO NORTH KOREA'S RESISTANCE TO FULL INSPECTION OF A NUCLEAR COMPLEX IN YONGBYON THE MOVE COULD SET THE STAGE FOR A CONFRONTATION OVER THE MATTER AT THE UNITED NATIONS SECURITY COUNCIL WITH WHICH THE ENERGY AGENCY IS AFFILIATED THE REQUEST FOR A SPECIAL INVESTIGATION COMES AS SUSPICIONS MOUNT THAT THE FACILITY 60 MILES NORTH OF PYONGYANG THE NORTH KOREAN CAPITAL HAS BEEN INVOLVED IN NUCLEARWEAPONS PRODUCTION WHICH THE NORTH KOREANS HAVE LONG DENIED THE NORTH KOREAN GOVERNMENT AGREED LAST MAY TO LET AGENCY INSPECTORS VISIT THE SITE BUT THEY HAVEN'T BEEN GIVEN ACCESS TO THE ENTIRE COMPLEX AND THE AGENCY'S ANALYSIS OF THE FACILITY'S WASTE EMISSIONS SUGGESTS IT MAY HAVE PRODUCED MORE PLUTONIUM THAN THE NORTH KOREANS ADMIT PLUTONIUM HAS NONMILITARY APPLICATIONS ESPECIALLY POWER GENERATION BUT IS ALSO USED IN NUCLEAR WEAPONS THE AGENCY POLICES THE NUCLEAR NONPROLIFERATION TREATY WHICH NORTH KOREA HAS SIGNED THE AGENCY IS SEEKING THE SPECIAL INSPECTION IN THIS CASE BECAUSE IT WAS EMBARRASSED FOR HAVING FAILED TO DO SO IN IRAQ ONLY TO DISCOVER LATER THAT IRAQ HAD MORE NUCLEAR CAPACITY THAN THE AGENCY HAD THOUGHT AN AGENCY SPOKESMAN IN VIENNA SAID WE HAVE NO REPLY YET TO THE REQUEST FROM THE NORTH KOREAN GOVERNMENT WE EXPECT AN ANSWER SOON HE ADDED IF NORTH KOREA DOESN'T REPLY OR TURNS THE REQUEST DOWN THE MATTER IS LIKELY TO BE REFERRED TO THE SECURITY COUNCIL WHICH COULD PRESS FOR ECONOMIC SANCTIONS BUT SUCH A MOVE MIGHT NOT BE EFFECTIVE AGAINST NORTH KOREA WHICH IS ALREADY ISOLATED IN THE INTERNATIONAL COMMUNITY TO REFER THE MATTER TO THE UN HANS BLIX THE ENERGY AGENCY'S DIRECTOR WOULD NEED PERMISSION FROM THE AGENCY'S 35 MEMBER STATES WHICH INCLUDE THE US AND RUSSIA WE AREN'T WAITING TOO LONG THE SPOKESMAN SAID 9302120150 930212 WHO'S NEWS DOW CHEMICAL CO DOW CHEMICAL CO MIDLAND MICH DAVID T BUZZELLI VICE PRESIDENT AND CORPORATE DIRECTOR OF ENVIRONMENT HEALTH AND SAFETY AND PUBLIC AFFAIRS AND BARBARA HACKMAN FRANKLIN FORMER US SECRETARY OF COMMERCE WERE NAMED DIRECTORS OF THIS CHEMICAL CONCERN THE APPOINTMENTS INCREASE BOARD MEMBERSHIP TO 18 ALSO THE COMPANY NAMED AS GROUP VICE PRESIDENTS ANTHONY J CARBONE FORMERLY GROUP VICE PRESIDENT DOW NORTH AMERICA AND MICHAEL D PARKER AREA PRESIDENT OF DOW PACIFIC 9302120149 930212 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK PRESTON A DAVIS 43 YEARS OLD WAS NAMED PRESIDENT OF BROADCAST OPERATIONS AND ENGINEERING FOR THE ABC TELEVISION NETWORK GROUP A UNIT OF THIS BROADCASTING AND PUBLISHING CONCERN HE SUCCEEDS ROBERT R SIEGENTHALER 59 WHO RECENTLY DECIDED TO TAKE EARLY RETIREMENT MR DAVIS WAS PREVIOUSLY VICE PRESIDENT FOR TV OPERATIONS BROADCAST OPERATIONS AND ENGINEERING FOR ABC'S EAST COAST DIVISION 9302120148 930212 PENN TRAFFIC CO JOHNSTOWN PA PENN TRAFFIC CO'S SECONDLARGEST SHAREHOLDER SAID IT IS CONSIDERING A SALE OF ALL OR PART OF ITS 96 STAKE IN THE SUPERMARKET CHAIN SALOMON INC UNITS OF WHICH HOLD THE STAKE DISCLOSED ITS INTENTIONS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION A SALOMON SPOKESWOMAN DECLINED TO PROVIDE A REASON PENN TRAFFIC DECLINED TO COMMENT 9302120147 930212 EURO DISNEY EXPECTS A LOSS FOR FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH THEME PARK OPERATOR EURO DISNEY SCA SAID IT EXPECTS A SUBSTANTIAL LOSS FOR THE YEAR ENDING SEPT 30 DESPITE AN EXPECTED IMPROVEMENT IN BUSINESS IN THE SECOND HALF THE ECONOMIC SITUATION IN FRANCE ISN'T VERY ENCOURAGING EURO DISNEY'S CHIEF FINANCIAL OFFICER JOHN FORSGREN TOLD THE ANNUAL SHAREHOLDERS MEETING HE ADDED THAT PERSISTENTLY HIGH INTEREST RATES IN FRANCE WERE KEEPING FIXED CHARGES AT UNCOMFORTABLY HIGH LEVELS EURO DISNEY PREVIOUSLY POSTED A NET LOSS OF 492 MILLION FRENCH FRANCS 877 MILLION FOR THE FIRST QUARTER ENDED IN DECEMBER COMPANY EXECUTIVES ATTENDING THE SHAREHOLDERS MEETING INDICATED THAT THERE IS A STRONG POTENTIAL FOR CUTTING OPERATING COSTS AT THE EURO DISNEY RESORT WHICH IS OUTSIDE OF PARIS BUT ON THE DEMAND SIDE THEY REMAIN CAUTIOUS ABOUT THE POSSIBILITY FOR SIGNIFICANTLY EXCEEDING LAST SUMMER'S ATTENDANCE AT THE PARK EURO DISNEY IS 49OWNED BY WALT DISNEY CO OF BURBANK CALIF ROBERT FITZPATRICK EURO DISNEY'S OUTGOING CHAIRMAN INDICATED THAT THE PARK HAS ATTRACTED ABOUT NINE MILLION VISITORS SINCE OPENING APRIL 12 THE COMPANY'S TARGET FOR THE FIRST FULL YEAR OF OPERATION IS 11 MILLION VISITORS PHILIPPE BOURGUIGNON WHO WILL TAKE OVER FROM MR FITZPATRICK APRIL 12 ALSO NOTED THAT RECENT MARKETING EFFORTS APPEAR TO BE HAVING A POSITIVE IMPACT ON ATTENDANCE HE SAID THE NUMBER OF VISITORS IN JANUARY WAS BETTER THAN IN NOVEMBER HE NOTED THAT DECEMBER WAS OF COURSE A MUCH BUSIER MONTH BECAUSE OF THE CHRISTMAS VACATION PERIOD EURO DISNEY'S OBJECTIVE REMAINS REACHING PROFITABILITY AS SOON AS POSSIBLE WITHOUT JEOPARDIZING THE QUALITY OF OUR PRODUCT HE TOLD SHAREHOLDERS HE REAFFIRMED THE GROUP'S COMMITMENT TO CONTROLLING COSTS THROUGH MORE FLEXIBLE LABOR AND HOTEL OCCUPANCY MANAGEMENT WHILE PLANS TO INCREASE THE PARK'S CAPACITY BEFORE THE SUMMER ARE WELL UNDER WAY 9302120146 930212 WHO'S NEWS NATIONAL COMMERCE BANCORP NATIONAL COMMERCE BANCORP MEMPHIS TENN THOMAS M GARROTT 55 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THIS BANK HOLDING COMPANY HE WILL SUCCEED BRUCE E CAMPBELL 62 WHO WILL LEAVE THOSE POSTS ON MAY 1 MR CAMPBELL WHO SAID HE WANTS TO BE LESS ACTIVE IN THE COMPANY'S DAILY OPERATIONS WILL REMAIN A BOARD MEMBER AND CHAIRMAN OF THE EXECUTIVE COMMITTEE ALSO JOHN S EVANS 53 WAS NAMED PRESIDENT OF THE NATIONAL BANK OF COMMERCE UNIT REPLACING MR GARROTT WHO WILL BE THE UNIT'S CHAIRMAN AND CHIEF EXECUTIVE MR EVANS HAS SERVED AS VICE CHAIRMAN AND SENIOR LOAN OFFICER AT THE BANK 9302120145 930212 INTERNATIONAL MAJOR CHINESE FIRMS MAY OFFER SHARES IN HONG KONG BUT GRIPES DOUBTS OCCUR BY MARCUS BRAUCHLI AND KATHY CHEN STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG IN A CAMPAIGN THAT WOULD DO MARCO POLO PROUD INVESTMENT BANKERS ACCOUNTANTS MERCHANT BANKERS AND LAWYERS ARE TREKKING TO CHINA KOWTOWING TO BEIJING'S RULERS AND HOPING TO GET THEMSELVES AND INVESTORS RICH FOR THE MODERN EXPLORERS THE MYTHS OF THE MIDDLE KINGDOM'S MONEYSPINNING POWERS JUST MIGHT PROVE TRUE UNDER A PACT BETWEEN CHINESE AND HONG KONG REGULATORS NINE HUGE STATE CHINESE COMPANIES MAY OFFER SHARES ON THIS COLONY'S STOCK MARKET RAISING AN ESTIMATED 2 BILLION OR MORE FOR THE ISSUERS AND GENERATING FEES FOR THEIR ADVISERS BUT EVEN AS THEY WAIT FOR MOST OF THE NINE COMPANIES TO NAME THE REST OF THEIR ADVISORY TEAMS NEXT WEEK MANY ARE GRUMBLING ABOUT BEIJING'S HEAVYHANDED GUIDANCE IN THE EXERCISE THE CHINA SECURITIES REGULATORY COMMISSION WHICH WAS SET UP LAST OCTOBER AS ONE PART OF A NATIONAL TWOTIER REGULATORY BODY IS OVERSEEING THE LISTINGS ACCORDING TO PARTICIPANTS IT HAS ANGERED OR ANNOYED ALMOST ALL THE PARTIES INVOLVED SOME ARE COMPLAINING ABOUT THE TIME TAKEN OTHERS ARE COMPLAINING ABOUT THE SELECTION PROCESS ABOUT HOW THE CHINESE COMPANIES ARE DEALT WITH ABOUT HOW OUTSIDERS ARE DEALT WITH SAYS MEOCRE LI A PARTNER AT INTERNATIONAL ACCOUNTING FIRM ARTHUR ANDERSEN & CO IT'S A DIFFICULT JOB BUT I THINK ONE COULDN'T DO SUCH A JOB WITHOUT UPSETTING SOME PEOPLE A BEIJING OFFICIAL INVOLVED IN THE DEVELOPMENT AND REGULATION OF THE COUNTRY'S SECURITIES MARKET CONCEDES THAT THERE HAVE BEEN SOME PROBLEMS OVER ARRANGEMENTS AND SOME COMPETITION AND IT'S UNDERSTANDABLE THAT PEOPLE HAVE AN OPINION BUT CHINA IS REFORMING AND THE SITUATION IS DIFFERENT NOW THE GOVERNMENT IS SETTING THE OVERALL POLICIES AND BASIC PRINCIPLES BECAUSE OUR COMPANIES DON'T HAVE ANY EXPERIENCE IN THIS AREA THEN THERE'S THE BIG QUESTION ARE GLOBAL INVESTORS WILLING TO BET ON CHINA IF THESE ARE TANGIBLE COMPANIES LIKE MANUFACTURERS I THINK INVESTORS WILL BE INTERESTED SAYS WILLIAM EBSWORTH THE HEAD OF FIDELITY INVESTMENTS MANAGEMENT HONG KONG LTD A UNIT OF THE BOSTONBASED FUNDMANAGEMENT FIRM INVESTORS' EXPERIENCE WITH CHINESE SHARE OFFERINGS SO FAR HAS BEEN MIXED FUND MANAGERS WHO LAST YEAR BOUGHT CLASS B SHARES THOSE DESIGNATED FOR FOREIGNERS ON CHINA'S FLEDGLING STOCK MARKETS IN SHENZHEN AND SHANGHAI BEAR THE SCARS MANY LOST MONEY WHEN PRICES PLUNGED AND TOO FEW SHARES WERE SOLD TO ALLOW LARGE INVESTORS TO BUY OR SELL EASILY AND GET THEIR CASH OUT QUICKLY BY CONTRAST THE FIRST NEW YORK EQUITY OFFERING BY A CHINESE COMPANY BRILLIANCE CHINA AUTOMOTIVE HOLDINGS WAS A SUCCESS THE STOCK OF ITS BERMUDAINCORPORATED LISTING VEHICLE NEARLY DOUBLED WITHIN TWO MONTHS AFTER IT WAS LISTED ON THE NEW YORK STOCK EXCHANGE THOUGH IT HAS SINCE SLIPPED THAT SUGGESTS AN APPETITE FOR ISSUES OF CHINESE COMPANIES THAT FOLLOW INTERNATIONAL ACCOUNTING AND DISCLOSURE PRACTICES IF CHINESE COMPANIES MEET THOSE STANDARDS IN THIS COLONY SAYS JOHN MULCAHY DIRECTOR OF RESEARCH AT HONG KONGBASED PEREGRINE BROKERAGE LTD HONG KONG EVENTUALLY WILL BE SEEN AS A KIND OF NURSERY MARKET FOR CHINESE COMPANIES INSTITUTIONAL INVESTORS SAY CHINA OUGHT TO BE AN ATTRACTIVE DESTINATION FOR CAPITAL ITS REGULAR DOUBLEDIGIT GROWTH LAST YEAR THE ECONOMY GREW 12 STANDS OUT IN BOLD RELIEF TO THE SLUGGISH ECONOMIES IN THE US JAPAN AND GERMANY POLITICAL INSTABILITY IN CHINA IS A RISK ESPECIALLY WITH BRITAIN AND BEIJING DICKERING OVER THE FUTURE OF HONG KONG AFTER IT REVERTS TO CHINESE RULE IN 1997 THOUGH IT'S CONSIDERED A RECEDING ISSUE INVESTORS BOTH IN HONG KONG AND ABROAD THINK CHINA HAS A VERY FASTDEVELOPING ECONOMY AND GREAT POTENTIAL IN THE NEXT DECADE SAYS CHARLES LEE CHAIRMAN OF THE HONG KONG STOCK EXCHANGE WHICH IS PROMOTING THE CHINESE COMPANIES' LOCAL LISTINGS BUT TO SUSTAIN THAT GROWTH CHINA NEEDS FOREIGNCURRENCY CAPITAL AND THAT'S WHERE SHARE ISSUES WILL HELP INVESTMENT BANKERS SAY THE CHALLENGE OF PERSUADING INVESTORS TO BUY SHARES IN THE NINE COMPANIES IS DAUNTING MANY FOREIGNERS MAY HAVE QUAFFED QINGDAO BREWERY'S BEER BUT WHO EVER HEARD OF MAANSHAN IRON & STEEL CO OR YIZHENG JOINT CORP OF CHEMICAL FIBER OR BEIJING RENMIN MACHINERY GENERAL PLANT THE TASK INVESTMENT BANKERS FACE IN BRINGING THESE AND OTHER HITHERTO OBSCURE COMPANIES TO MARKET IS FAR BIGGER THAN JUST IMPROVING NAME RECOGNITION THE SHANGHAI PETROCHEMICAL COMPLEX FROM WHICH MERRILL LYNCH & CO HAS WON THE ONLY CHINESE LISTING MANDATE SO FAR PUBLICLY AWARDED THIS YEAR IS NO SIMPLE ENTERPRISE IT EMPLOYS 60000 WORKERS BUT ABOUT 110000 PEOPLE LIVE IN A FACTORY COMPOUND WHERE THE COMPANY PROVIDES NURSERIES SCHOOLS RESTAURANTS AND EVEN MUNICIPAL SERVICES ALL IN THE IRON RICE BOWL TRADITION THAT PROMISED COMMUNIST CHINESE CRADLETOGRAVE FOOD AND WELFARE BENEFITS MERRILL LYNCH WON'T DISCUSS THE OFFERING BUT OTHER INVESTMENT BANKERS SAY IT MAY TOTAL 500 MILLION OR MORE LONG BEFORE MOST GLOBAL INVESTORS WOULD CONSIDER INVESTING IN SUCH A MONOLITH AND INDEED BEFORE HONG KONG REGULATORS WOULD ALLOW IT TO BE LISTED IT MUST COMPLETELY RESTRUCTURE SHEDDING NONCORE BUSINESS INTERESTS OR SPINNING THEM OFF INTO SEPARATE ENTITIES LAST YEAR ALMOST IMMEDIATELY AFTER HONG KONG'S STOCK MARKET REGULATORS ANNOUNCED THAT THEY HAD AGREED IN PRINCIPLE TO ALLOW THE SOCALLED HONG KONG NINE TO BE LISTED REPRESENTATIVES FROM ACCOUNTING FIRMS AND INVESTMENT BANKERS WERE PILING ONTO AIRPLANES FOR CHINA MOST OF THE MAJOR INTERNATIONAL ACCOUNTING FIRMS NOW HAVE CONTRACTS TO REVIEW THE FINANCES OF THE NINE COMPANIES PEAT MARWICK FOR INSTANCE IS HANDLING SHANGHAI PETROCHEMICAL EVEN THOUGH THE UNDERWRITING WORK IS EXPECTED TO BE SPREAD AROUND TO A NUMBER OF FIRMS THE COMPETITION FOR CHINA'S BUSINESS IS INTENSE AND UNUSUALLY SECRETIVE WE ARE ACTIVE SAYS DAVID BLACKETT MANAGING DIRECTOR OF NM ROTHSCHILD & SONS HONG KONG LTD A BRITISH MERCHANT BANK ALONG WITH ABOUT 30 OTHER INVESTMENT BANKS A RIVAL SAYS THE COMPETITION IS VISIBLE EVERYWHERE I'D SEE MY COMPETITORS IN EVERY HOTEL I STAYED IN ON A RECENT TRIP TO CHINA SHANGHAI PETROCHEMICAL THE LARGEST AMONG THE NINE IS EXPECTED TO BE THE FIRST TO BE LISTED BY THE END OF JUNE LIKE THE OTHERS IT PLANS TO ISSUE SIMULTANEOUSLY YUANDENOMINATED SHARES ON THE CHINESE STOCK MARKET CHINESE STATEOWNED COMPANIES THAT MAY OFFER SHARES ON THE COLONY'S STOCK MARKET 9302120144 930212 SSE'S FIRSTQUARTER NET ROSE FREMONT CALIF SSE TELECOM INC SAID STRONG WORLDWIDE DEMAND FOR ITS SATELLITE TELECOMMUNICATIONS EQUIPMENT CAUSED FISCAL FIRSTQUARTER NET INCOME TO GROW 33 TO 368000 OR SEVEN CENTS A SHARE THAT COMPARES WITH 277000 OR SIX CENTS A SHARE A YEAR EARLIER THE MAKER OF SATELLITE TELECOMMUNICATIONS EQUIPMENT SAID REVENUE FOR THE PERIOD ENDING DEC 26 INCREASED 22 TO 69 MILLION FROM 57 MILLION 9302120143 930212 FORD OFFERS VISA AND MASTERCARD THROUGH CITICORP BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO UNVEILED ITS OWN CREDIT CARDS WHICH WILL COMPETE NOSETONOSE WITH GENERAL MOTORS CORP'S BANK CARDS FORD IS LAUNCHING A DOUBLEBARRELED OFFENSIVE BY OFFERING BOTH A VISA AND MASTERCARD IN A JOINT EFFORT WITH NEW YORKBASED CITICORP THE NATION'S LARGEST CREDITCARD ISSUER THE FORD CITIBANK VISA AND MASTERCARD WILL OFFER A 5 REBATE ON THE PURCHASE OR LEASE OF A NEW FORD VEHICLE SIMILAR TO WHAT GM OFFERS ON ITS MASTERCARD FORD'S FORAY INTO THE CREDITCARD MARKET WHICH HAD BEEN EXPECTED IS PART OF A TREND AMONG COMMERCIAL AND RETAIL CONCERNS TO ISSUE CARDS AS A MARKETING TOOL TO BOOST SALES OF THEIR PRODUCTS AND SERVICES FORD'S CREDIT CARDS CARRY A 154 INTEREST RATE ABOUT ONE PERCENTAGE POINT LOWER THAN THE INTEREST RATE ON GM'S NO ANNUALFEE MASTERCARD AND A 20 A YEAR ANNUAL FEE WAIVED THE FIRST YEAR OF MEMBERSHIP EACH YEAR THEREAFTER A 50 REBATE BONUS IS GRANTED AS THE FEE IS PAID NEW CARDHOLDERS WHO TRANSFER BALANCES FROM NONCITIBANK CREDIT CARDS WILL ONLY BE CHARGED A 99 RATE ON THE TRANSFERRED BALANCE BEGINNING APRIL 5 THROUGH AUG 31 COMPETITIVE PRESSURES INTENSIFIED LAST WEEK WHEN GM ANNOUNCED PLANS TO OFFER A GOLD MASTERCARD THE MOVE COMES ABOUT FIVE MONTHS AFTER GM INITIALLY INTRODUCED ITS MASTERCARD THROUGH HOUSEHOLD INTERNATIONAL INC THE EIGHTHLARGEST CREDIT CARD ISSUER GM'S CREDITCARD LAUNCH IS CONSIDERED THE CARD INDUSTRY'S MOST SUCCESSFUL BECAUSE IT ATTRACTED A LARGE NUMBER OF CUSTOMERS IN A SHORT PERIOD CHRYSLER CORP SAID IT IS CONSIDERING LAUNCHING A CREDIT CARD BUT WON'T MAKE A FINAL DECISION UNTIL MARCH CITIBANK SAID IT IS MAKING BOTH A FORD VISA AND MASTERCARD AVAILABLE TO CARDHOLDERS BECAUSE SOME PEOPLE PREFER ONE BRAND OVER THE OTHER CITIBANK SAID A GOLD CARD ISN'T IN THE PLANS AT THIS TIME A GOLD CARD ISN'T SOMETHING WE FEEL WE NEED RIGHT NOW SAID RICH SREDNICKI CITIBANK'S GENERAL MANAGER OF BANKCARD BUSINESS YESTERDAY FORD UNLEASHED A MARKETING OFFENSIVE TO INTRODUCE ITS CARDS FORD OFFICIALS WOULDN'T SAY HOW MUCH THE NO 2 AUTO MAKER PLANS TO SPEND ON THE AD CAMPAIGN CALLED IT'S A BETTER IDEA BUT FORD OFFICIALS SAID THE ADVERTISING SPENDING TO PROMOTE THE CREDIT CARDS WILL RIVAL THAT OF ITS COMPETITORS GM'S AD BUDGET FOR ITS INITIAL CREDITCARD LAUNCH WAS REPORTED AT 60 MILLION WITH AN ADDITIONAL 25 MILLION EARMARKED FOR DIRECT RESPONSE IT APPEARS TO BE PAYING OFF IN LESS THAN ONE MONTH GM SNARED ITS ONE MILLIONTH CUSTOMER ABOUT ONETHIRD THE TIME IT TOOK AMERICAN TELEPHONE & TELEGRAPH CO'S UNIVERSAL CARD TO REACH THAT MILESTONE THOUGH BOTH FORD AND GM OFFER THE 5 REBATE ON THE PURCHASE OR LEASE OF A NEW VEHICLE FORD WILL ALLOW ITS CARDHOLDERS TO EARN UP TO 700 IN REBATES A YEAR OR 3500 IF ACCRUED TO A MAXIMUM OF FIVE YEARS GM CARDHOLDERS CAN EARN AS MUCH AS 500 A YEAR IN REBATES FOR UP TO SEVEN YEARS TO REACH THE MAXIMUM 3500 9302120142 930212 WHO'S NEWS SANWA BANK LTD SANWA BANK LTD TOKYO WILLIAM E MOELLER 50 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SANWA BUSINESS CREDIT CORP THE PRINCIPAL NONBANK US SUBSIDIARY OF THIS BANKING CONCERN MR MOELLER WHO HAD BEEN PRESIDENT OF CONNECTICUT BANK & TRUST CO BEFORE JOINING SANWA BUSINESS CREDIT A YEAR AGO SUCCEEDS BERNARD J MCKENNA 59 WHO WILL RETIRE FEB 28 FROM THOSE POSTS BUT REMAIN A DIRECTOR OF THE SUBSIDIARY 9302120141 930212 BUSINESS BRIEF IMMUNE RESPONSE CORP FOURTHPERIOD LOSS WIDENED ON TARGETECH ACQUISITION IMMUNE RESPONSE CORP REPORTED A FOURTHQUARTER LOSS OF 32 MILLION OR 201 A SHARE REFLECTING A CHARGE OF 298 MILLION FOR RESEARCH AND DEVELOPMENT RELATED TO THE ACQUISITION OF TARGETECH INC A CLOSELY HELD BIOPHARMACEUTICAL FIRM A YEAR EARLIER THE CARLSBAD CALIF IMMUNE SYSTEM PHARMACEUTICALS RESEARCH AND DEVELOPMENT CONCERN REPORTED A LOSS OF 75000 OR ONE CENT A SHARE CONTRACT RESEARCH REVENUE WAS 11 MILLION COMPARED WITH 1 MILLION A YEAR AGO FOR THE YEAR IMMUNE RESPONSE REPORTED A LOSS OF 338 MILLION OR 219 A SHARE COMPARED WITH A LOSS OF 3 MILLION OR 23 CENTS A SHARE IN 1991 CONTRACT RESEARCH REVENUE FELL TO 4 MILLION FROM 43 MILLION FOR THE PRIOR YEAR DAVID VANDERTIE CONTROLLER SAID IMMUNE RESPONSE ACQUIRED TARGETECH IN NOVEMBER FOR 3 MILLION IN CASH AND 13 MILLION SHARES OF IMMUNE RESPONSE STOCK AT A TOTAL INDICATED VALUE OF 298 MILLION 9302120140 930212 LAW LEGAL BEAT NADER ACCUSES PLAINTIFF GROUP OF CUTTING DEAL BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL IN A BITTER RIFT BETWEEN ERSTWHILE ALLIES RALPH NADER IS ACCUSING TEXAS PLAINTIFFS' LAWYERS OF CUTTING A DEAL TO BENEFIT THEMSELVES AT THE EXPENSE OF CONSUMERS THE CONSUMER ACTIVIST IS FUMING OVER TWO LEGAL REFORM BILLS THAT THE PLAINTIFFDOMINATED TEXAS TRIAL LAWYERS ASSOCIATION NEGOTIATED BEHIND THE SCENES WITH THE STATE'S LEADING BUSINESS INTERESTS ONE WOULD EXEMPT SOME INDUSTRIES INCLUDING ALCOHOL AND TOBACCO FROM PRODUCT DEFECT SUITS ALTOGETHER IT ALSO PROVIDES BROAD EXEMPTIONS FROM SUCH SUITS FOR OTHER INDUSTRIES INCLUDING MAKERS OF FIREARMS AND VACCINES AND GENERALLY MAKES IT HARDER FOR ALL PLAINTIFFS TO PROVE THEY WERE INJURED BY A PRODUCT'S DEFECTIVE DESIGN THE OTHER PROPOSED MEASURE WOULD GIVE TEXAS JUDGES MORE DISCRETION TO DISMISS WRONGFUL DEATH AND PERSONAL INJURY SUITS BROUGHT BY FOREIGN RESIDENTS AND NONTEXANS IN THE STATE AGAINST COMPANIES DOING BUSINESS THERE BOTH BILLS ARE PARTICULARLY SIGNIFICANT TO COMPANIES NATIONWIDE PLAINTIFFS FREQUENTLY CHOOSE TEXAS AS A FRIENDLY FORUM FOR INJURY SUITS WHEN THEY CAN BECAUSE OF ITS REPUTATION FOR HUGE JURY AWARDS MR NADER CLAIMS THE PLAINTIFFS' LAWYERS AGREED TO THE DEAL BECAUSE THEY FEARED THAT A TOUGHER LAW WOULD PASS THAT WOULD HAVE COST THEM MORE TOBACCO LITIGATION FOR EXAMPLE HAS PROVEN TO BE UNPROFITABLE FOR PLAINTIFFS' LAWYERS BECAUSE NO PLAINTIFF HAS YET TO COLLECT ANY DAMAGES IN SUCH A CASE PLAINTIFFS' LAWYERS TYPICALLY PAY THE UPFRONT EXPENSE INVOLVED IN PURSUING PRODUCT DEFECT SUITS IN HOPES OF RECOUPING A PERCENTAGE OF ANY AWARD THEY WIN ASSUMING THEY DO THE PRIVATE DEAL ACCORDING TO MR NADER'S CONSUMER GROUP PUBLIC CITIZEN GIVES THE APPEARANCE THAT TEXAS TRIAL LAWYERS HAVE SOLD OUT RISKY AND LESS PROFITABLE AREAS OF PRODUCT LIABILITY LITIGATION DEFECT SUITS INVOLVING TOBACCO ALCOHOL AND GUNS FOR EXAMPLE IN ORDER TO PROTECT MORE PROFITABLE SUITS THE COMPROMISE BILLS NEGOTIATED OVER 10 MONTHS OF CLOSED DOOR MEETINGS HAVE WON UNANIMOUS APPROVAL IN THE STATE SENATE AND ARE NOW PENDING IN THE HOUSE WHERE MR NADER PUBLIC CITIZEN AND A COALITION OF HEALTH AND LABOR GROUPS ARE SCRAMBLING TO BLOCK THEM TO MR NADER THE ISSUE IS NOT JUST THE CONTENTS OF THE BILLS WHICH HE OPPOSES AS ANTICONSUMER BUT THE WAY THE COMPROMISES WERE REACHED THE TEXAS TRIAL LAWYERS FACED WITH THE NEAR CERTAINTY THAT SOME PRODUCTSLIABILITY LAW WOULD PASS THE LEGISLATURE THIS YEAR NEGOTIATED IN PRIVATE WITH THE TEXAS CIVIL JUSTICE LEAGUE AN INDUSTRYSPONSORED LEGAL REFORM GROUP HEAVILY BACKED BY TOBACCO ALCOHOL AND PHARMACEUTICAL COMPANIES HEALTH AND CONSUMER ADVOCATES WERE DELIBERATELY LEFT OUT IN A LETTER TO TEXAS TRIAL LAWYERS ASSOCIATION PRESIDENT DON BOWAN LAST MONTH MR NADER LAMBASTED THE LAWYERS FOR ENGAGING IN A SECRET SURROGATE LEGISLATIVE ROLE TO DECIDE HOW MUCH OF THE RIGHTS OF INJURED PEOPLE TO GIVE UP THE TEXAS EXAMPLE ALARMS MR NADER BECAUSE HE SAYS IT COULD SERVE AS FORERUNNER TO OTHER STATES WHERE PRODUCT LIABILITY REFORM HAS BEEN FRUSTRATED IN THE PAST BY THE UNITED OPPOSITION OF TRIAL LAWYERS AND CONSUMER GROUPS IF INDUSTRY GROUPS WIN IN TEXAS WITHOUT A PUBLIC DEBATE OR STRENUOUS CHALLENGE THEY WILL SURELY TAKE THIS MODEL TO OTHER STATES LARGE AND SMALL MR NADER WROTE THIS IS A CONTAGION THAT MANY CITIZEN GROUPS AND ATTORNEYS OUTSIDE OF TEXAS WILL NOT APPRECIATE THE SITUATION EXEMPLIFIES THE LATEST TWIST IN THE QUIET REVOLUTION OF LEGAL REFORM THAT IS TAKING PLACE IN STATEHOUSES NATIONWIDE AWAY FROM THE NATIONAL SPOTLIGHT AND ABSENT THE PARTISAN POLITICS THAT HAS CHARACTERIZED THE NATIONAL DEBATE SOME ASPECTS OF THE PROPOSED TEXAS LAW MIRROR A COMPROMISE REACHED BETWEEN TRIAL LAWYERS AND INDUSTRY GROUPS IN CALIFORNIA IN 1987 THERE IN EXCHANGE FOR IMMUNIZING FROM PRODUCT DEFECT SUITS THE MAKERS OF INHERENTLY UNSAFE PRODUCTS SUCH AS TOBACCO AND ALCOHOL TRIAL LAWYERS WON AN INCREASE IN THEIR FEE LIMITS FOR MEDICALMALPRACTICE SUITS NO SUCH TRADEOFF TOOK PLACE IN TEXAS ACCORDING TO THE TEXAS TRIAL LAWYERS ASSOCIATION THE GROUP SAYS IT HAD NO CHOICE BUT TO NEGOTIATE A COMPROMISE FOR YEARS PRODUCTLIABILITY REFORM HAD SAILED COMFORTABLY THROUGH THE TEXAS HOUSE ONLY TO BE SHOT DOWN IN THE SENATE WHERE TRIAL LAWYERS DOMINATED SEVERAL KEY COMMITTEES INCLUDING THE SENATE ECONOMIC DEVELOPMENT COMMITTEE ALL OF THAT CHANGED WHEN THE STATE'S DISTRICT LINES WERE REDRAWN LAST YEAR THREE VETERAN DEMOCRATS ALL TRIAL LAWYERS SUDDENLY FOUND THEMSELVES IN HEAVILY REPUBLICAN DISTRICTS FACING OPPONENTS WHO WERE BACKED BY INDUSTRY AND MANUFACTURING GROUPS AND WHO WERE RAISING LAWSUIT ABUSE AS AN ISSUE ALL THREE LOST DESPITE THEIR OWN SUBSTANTIAL FINANCIAL BACKING FROM TRIAL LAWYERS THE RESULT COST TRIAL LAWYERS THEIR CONTROL OF LEGAL REFORM IN THE SENATE WE WERE IN A POLITICAL POSTURE THIS YEAR WHERE THERE WAS GOING TO BE SOME KIND OF REFORM LIKE IT OR NOT SAYS MR BOWAN OF THE TRIAL LAWYERS GROUP I THOUGHT THE BILL THAT WE CAME UP WITH WAS A REASONABLE COMPROMISE THAT REALLY PRESERVED THE RIGHTS OF CONSUMERS THE MOST CONTROVERSIAL ASPECT OF THE BILL FREES MANUFACTURERS FROM PRODUCTLIABILITY SUITS OVER CONSUMER GOODS THAT ARE KNOWN TO THE ORDINARY CONSUMER TO BE INHERENTLY UNSAFE THE MOST CONSPICUOUS OF THESE ARE CIGARETTES AND ALCOHOL BUT THE BILL ALSO EXPRESSLY INCLUDES ITEMS SUCH AS SUGAR CASTOR OIL AND BUTTER IT'S REALLY DESIGNED TO MAKE INDIVIDUALS RESPONSIBLE FOR WHAT THEY DO SAYS RALPH WAYNE PRESIDENT OF THE TEXAS CIVIL JUSTICE LEAGUE IN AUSTIN MR NADER COMPLAINS THAT THE PHRASE SUCH AS BROADENS THE IMMUNITY TO INCLUDE MANUFACTURERS OF ANY PRODUCT THAT CAN BE CHARACTERIZED AS INHERENTLY DANGEROUS EVERYTHING FROM CHAIN SAWS TO DRILL PRESSES MOREOVER IT REMAINS UNCLEAR WHETHER THE LAW WOULD BAN PRODUCTLIABILITY SUITS AGAINST CIGARETTE COMPANIES BASED ON ALLEGATIONS OF FRAUD AND CONSPIRACY THE US SUPREME COURT OPENED THE DOOR TO SUCH CLAIMS AGAINST CIGARETTE COMPANIES IN A DECISION LAST JUNE THE CALIFORNIA LAW FROM WHICH THE TEXAS MEASURE IS DERIVED WAS DRAFTED UNDER THE GUIDANCE OF THE WASHINGTON FIRM COVINGTON & BURLING WHICH REPRESENTS SEVERAL TOBACCO COMPANIES AND THE TOBACCO INSTITUTE THE INDUSTRY'S LOBBYING ARM OTHER PROVISIONS IN THE PROPOSED LAW INDEMNIFY GUN MANUFACTURERS FROM LIABILITY UNDER THE EMERGING THEORY THAT SOME FIREARMS PARTICULARLY ASSAULT RIFLES AND SATURDAY NIGHT SPECIALS ARE INHERENTLY DEFECTIVE BECAUSE THEIR RISKS TO SOCIETY OUTWEIGH ANY LEGITIMATE USE THAT ARGUMENT WHICH SO FAR HAS SUCCEEDED ONLY IN MARYLAND IS BEING PUSHED IN OTHER STATES BY ANTIHANDGUN GROUPS IN INDUSTRIES THAT DON'T GET IMMUNITY THE PROPOSED LAW GIVES STORE OWNERS A BREAK BY HOLDING ONLY THE MANUFACTURERS RESPONSIBLE FOR THE SALE OF DEFECTIVE PRODUCTS MORE SIGNIFICANTLY FOR PLAINTIFFS THE LAW ALSO WOULD INCREASE THE BURDEN OF PROOF REQUIRED IN PRODUCTDEFECT CASES NOT ONLY WOULD PLAINTIFFS BE REQUIRED TO PROVE THAT A PRODUCT WAS DEFECTIVE BUT ALSO THAT A SAFER COSTEFFECTIVE ALTERNATIVE WAS AVAILABLE AT THE TIME OF MANUFACTURE AND THAT IT WOULD NOT HAVE SUBSTANTIALLY IMPAIRED THE PRODUCT'S USE TRIAL LAWYERS MAINTAIN THAT THE PROVISION REQUIRES NO MORE OF PLAINTIFFS THAN EXISTING CASE LAW IN TEXAS BUT MR NADER CONTENDS THAT THE QUALIFICATIONS OPEN BROAD LOOPHOLES FOR MANUFACTURERS PLAINTIFFS' LAWYERS ALSO PLAY DOWN THE SIGNIFICANCE OF THE TOBACCO PROVISION THERE'S NOT ONE DECENT LAWYER IN THE STATE OF TEXAS HANDLING TOBACCO CASES SAYS HOUSTON TRIAL LAWYER MIKE GALLAGHER WHO LED NEGOTIATIONS WITH THE CIVIL JUSTICE LEAGUE OVERALL HE SAYS LAWYERS GAVE UP LITTLE CONSIDERING HOW MUCH MORE THEY HAD TO LOSE GIVEN THEIR WEAKENED POLITICAL CLOUT AS IT IS SAYS MR GALLAGHER THE LAWYERS FENDED OFF ATTEMPTS TO CURB PUNITIVE DAMAGE AWARDS IN INSTANCES OF WILLFUL OR INTENTIONAL WRONGDOING AND ENVIRONMENTAL SUITS OVER POLLUTION AND TOXIC DUMPING WERE SPECIFICALLY EXEMPTED FROM ANY OF THE REFORM PROVISIONS EVEN SO TRIAL LAWYERS IN TEXAS ARE DIVIDED NOBODY LIKES IT SAYS DALLAS TRIAL LAWYER JOHN E COLLINS IT'S A BITTER PILL TO SWALLOW A BANK THAT STEPPED IN TO OVERSEE THE OPERATION OF TWO CONTAMINATED WASTE SITES OWNED BY A TROUBLED BORROWER CAN'T BE HELD LIABLE FOR SUPERFUND CLEANUP COSTS A FEDERAL JUDGE RULED JUDGE DAVID W MCKEAGUE IN LANSING MICH DISMISSED A LAWSUIT BROUGHT BY THE MICHIGAN NATURAL RESOURCES COMMISSION AGAINST MANUFACTURERS NATIONAL BANK OF DETROIT A UNIT OF COMERICA INC DETROIT THE BANK WAS LIABLE FOR THE CLEANUP COSTS THE STATE AGENCY CLAIMED BECAUSE IT HAD TAKEN OVER THE OPERATION OF THE SITES FROM THE BORROWER AUTO SPECIALTIES MANUFACTURING CO ST JOSEPH MICH WHEN TOXIC DUMPING OCCURRED LENDERS THAT MANAGE CONTAMINATED SITES BELONGING TO BORROWERS HAVE BEEN UNCERTAIN HOW FAR THEY CAN GO TO PROTECT THEIR INTERESTS UNDER THE 1981 SUPERFUND LAW IN AN EFFORT TO CLARIFY THE LAW THE US ENVIRONMENTAL PROTECTION AGENCY LAST YEAR DECLARED THAT LENDERS CAN BE HELD LIABLE FOR CLEANUP COSTS WHEN THEY CONTROL DECISIONS ABOUT THE BORROWER'S COMPLIANCE WITH SUPERFUND LAW OR CONTROL THE BORROWER'S DAYTODAY FINANCIAL OR ADMINISTRATIVE OPERATIONS THE DECISION BY JUDGE MCKEAGUE IS ONE OF THE FIRST TO INTERPRET THE NEW EPA RULE IN HIS DECISION THE JUDGE SAID THE BANK HAD SUGGESTED OR DEMANDED NEW MANAGEMENT MONITORED THE BORROWER'S FINANCIAL HEALTH AND REGULARLY CONSULTED WITH THE BORROWER'S CUSTOMERS BUT IF BANKS WERE TO BE HELD LIABLE UNDER THE SUPERFUND LAW BECAUSE OF SUCH ACTIVITIES JUDGE MCKEAGUE SAID THEY WOULD INSULATE THEMSELVES FROM LIABILITY BY CALLING LOANS RATHER THAN NURSING TROUBLED BORROWERS BACK TO FINANCIAL HEALTH PAUL NOVAK AN ATTORNEY IN THE MICHIGAN ATTORNEY GENERAL'S OFFICE SAID THE STATE IS LEANING TOWARD AN APPEAL WHO'S NEWS RUSSEL BEATIE JR A MASSLIABILITY DEFENSE LAWYER HAS FORMED BEATIE KING & ABATE A NINELAWYER FIRM IN NEW YORK MR BEATIE AND THE OTHER NAME PARTNERS KENNETH KING AND SAMUEL ABATE JR WERE PREVIOUSLY PARTNERS AT NEW YORK LAW FIRM BROWN & WOOD ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE 9302120139 930212 GM'S DEFICIT IN QUARTER HIT 6518 MILLION HUGE ONETIME CHARGES CAUSED THE LOSS WHILE OPERATIONS REBOUNDED BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WEIGHED DOWN BY HUGE ONETIME CHARGES REPORTED A FOURTHQUARTER LOSS OF 6518 MILLION AND A WORLD RECORDBREAKING 235 BILLION DEFICIT FOR THE YEAR BUT EXCLUDING THE CHARGES GM WAS IN THE BLACK ANALYSTS CALLED THE 35 BILLION IMPROVEMENT IN GM'S ANNUAL OPERATING PERFORMANCE A POSITIVE SURPRISE AS IT WAS ACCOMPLISHED DESPITE MORE CONSERVATIVE ACCOUNTING INVESTORS BOOSTED THE COMPANY'S SHARES TO 4050 UP 125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING IT'S A TURNAROUND WE CAN BE PROUD OF GM'S CHIEF FINANCIAL OFFICER G RICHARD WAGONER SAID DURING A NEWS CONFERENCE BUT WE'VE GOT A WAY TO GO INDEED GM'S UNFUNDED PENSION LIABILITIES SOARED TO 14 BILLION FROM 84 BILLION A YEAR EARLIER REPRESENTING A CLAIM ON FUTURE CASH FLOW AND MR WAGONER REAFFIRMED GM'S AGGRESSIVE BUT ACHIEVABLE TARGET OF REVERSING 35 BILLION IN NORTH AMERICAN OPERATIONS LOSSES THIS YEAR EVEN THOUGH SALES AREN'T EXPECTED TO IMPROVE STRONGLY THE NO 1 AUTO MAKER SAID IT EARNED 2733 MILLION OR 10 CENTS A SHARE IN THE FOURTH QUARTER BEFORE TWO BIG CHARGES AND A SMALLER GAIN THAT MARKED A REBOUND FROM A YEAREARLIER LOSS OF 5198 MILLION OR 109 A SHARE BEFORE A RESTRUCTURING CHARGE INCLUDING CHARGES GM HAD A LOSS OF 247 BILLION OR 425 A SHARE A YEAR EARLIER IN THE LATEST QUARTER GM'S NET LOSS WAS 125 A SHARE REVENUE ROSE 64 TO 3576 BILLION IN THE LATEST FOURTH QUARTER WHEN GM CAN EARN 10 CENTS A SHARE WITH CONSERVATIVE ACCOUNTING THAT'S A MAJOR SURPRISE SAID MORGAN STANLEY ANALYST SCOTT MERLIS IF THE ECONOMY REBOUNDS GM COULD SHOW THE SAME TYPE OF EARNINGS SURPRISES AS CHRYSLER HE ADDED MORE IMPORTANTLY GM ADDED 198 BILLION IN CASH TO ITS COFFERS DURING THE FOURTH QUARTER AS CASH FLOW FROM OPERATIONS REBOUNDED STRONGLY GM ENDED THE YEAR WITH 72 BILLION IN CASH UP FROM 398 BILLION A YEAR EARLIER THE REBOUND IN CASH FLOW IS CRITICAL BECAUSE GM'S CASH OUTFLOW DURING THE PAST TWO YEARS HAD UNDERMINED ITS EFFORTS TO DEVELOP NEW PRODUCTS AND FIX ITS BADLY DENTED BALANCE SHEET FOR THE FIRST TIME GM DISCLOSED THE MAGNITUDE OF THE LOSSES THAT DROVE THE AUTO MAKER'S OUTSIDE DIRECTORS LAST YEAR TO OUST FORMER PRESIDENT LLOYD E REUSS AND THEN CHAIRMAN ROBERT C STEMPEL GM HAD A LOSS OF 35 BILLION ON ITS CORE NORTH AMERICAN AUTO BUSINESS IN ALL OF 1992 ON TOP OF 1991'S 689 BILLION DEFICIT IN THE FOURTH QUARTER GM NARROWED ITS NORTH AMERICAN LOSS BEFORE INTEREST AND TAXES TO 966 MILLION FROM127 BILLION A YEAR EARLIER BUT THE NORTH AMERICAN LOSS IN THE 1992 QUARTER WAS DEEPENED BY A ONETIME 333 MILLION EXPENSE FOR A LARGERTHANEXPECTED EARLY RETIREMENT PROGRAM AND AN UNSPECIFIED ADDITION TO WARRANTYCLAIMS RESERVES TAKEN AS PART OF A BROAD MOVE TO MAKE GM'S ACCOUNTING MORE CONSERVATIVE GM'S OVERSEAS AUTOMOTIVE OPERATIONS EARNED 2184 MILLION IN THE FOURTH QUARTER DOWN 24 FROM A YEAR EARLIER BEFORE A 1651 MILLION GAIN FROM GM'S SALE OF ITS STAKE IN SOUTH KOREA'S DAEWOO MOTOR CORP THE DROP REFLECTS WEAKNESS IN KEY EUROPEAN MARKETS AND MR WAGONER SAID BUSINESS WILL BE TOUGHER FOR GM'S EUROPEAN OPERATIONS THIS YEAR GM'S THREE BIG NONAUTOMOTIVE UNITS CONTRIBUTED A TOTAL OF 7031 MILLION IN THE LATEST QUARTER FOR ALL OF 1992 GM EARNED 92 MILLION BEFORE A 222 BILLION CHARGE TO RECOGNIZE LIABILITIES FOR RETIREE MEDICAL BENEFITS AND 15 BILLION IN OTHER RESTRUCTURING CHARGES THAT COMPARES WITH A 1991 LOSS OF 345 BILLION BEFORE ONETIME WRITEOFFS GM'S REVENUE FOR ALL OF 1992 CLIMBED 76 TO 13243 BILLION MR WAGONER SAID GM IS STILL CONFIDENT IT CAN MAKE GOOD ON PRESIDENT JOHN F SMITH JR'S PROMISE TO PRODUCE BREAKEVEN RESULTS IN NORTH AMERICAN OPERATIONS BEFORE INTEREST TAXES AND A CONTINUING CHARGE FOR RETIREE MEDICAL BENEFITS BUT HE CONCEDED THAT GM HAS WORK TO DO TO SHORE UP ITS BALANCE SHEET THE 208 BILLION CHARGE FOR RETIREE MEDICAL BENEFITS REDUCED GM'S NET WORTH TO JUST 623 BILLION FROM 2734 BILLION THAT WON'T AFFECT GM'S ABILITY TO PAY DIVIDENDS OR SECURE FINANCING MR WAGONER SAID BUT IT DOES DRAMATIZE THE HUGE CLAIM HEALTH CARE WILL PUT ON GM'S FUTURE CASH FLOW PARTICULARLY AS THE RATIO OF US AUTOMOTIVE RETIREES TO US ACTIVE WORKERS RISES ABOVE THE CURRENT 1TO1 WE HAVE AT GM A VERY RICH BENEFITS PROGRAM MR WAGONER SAID WE NEED TO WORK WITH OUR UNIONS TO LOWER MEDICAL COSTS THAT GM ESTIMATES ARE ESCALATING NOW AT ABOUT 10 ANNUALLY THAT PROCESS BEGAN YESTERDAY AS MR SMITH MET WITH UNITED AUTO WORKERS UNION LOCAL LEADERS IN DETROIT FOR AN UNPRECEDENTED SESSION TO DISCUSS THE STATE OF GM'S BUSINESS AND THE IMPACT OF THE RETIREEBENEFITS ISSUE AS FOR THE HUGE UNFUNDED PENSION LIABILITY GM TOOK STEPS TO TIGHTEN UP ITS PENSION ACCOUNTING AND BEGIN CONTRIBUTING MORE TO ITS RETIREMENT FUNDS WE'RE GOING TO START FUNDING MORE THAN WE'RE EXPENSING A GM SPOKESMAN SAID GM LOWERED TO 10 FROM 11 THE ASSUMED RATE OF EARNINGS ON ITS PENSION ASSETS THAT MOVE WILL RAISE THE COMPANY'S CONTINUING PENSION EXPENSES ABOUT 428 MILLION A YEAR THE SPOKESMAN SAID 9302120138 930212 LETTERS TO THE EDITOR THE DESTRUCTIVE POWER OF UNENFORCEABLE LAWS RICHARD REAY'S JAN 13 LETTER TO THE EDITOR THE KILLER IS LIBERTINISM NOT DRUGS IS HOPELESSLY CONVOLUTED HE SEEMS TO CLAIM THAT SOCIAL INSTITUTIONS NOT THE REPEAL OF PROHIBITION REDUCED THE MURDER RATE STARTING IN 1933 BUT THESE SOCIAL INSTITUTIONS ALSO EXISTED DURING PROHIBITION WHEN THE MURDER RATE SOARED MR REAY COMPLAINS THAT ADVOCATES OF LEGALIZATION IGNORE SOCIAL FACTORS AND UNRESTRAINED LIBERTINISM WHEN IN FACT IT IS THE PROPONENTS OF LEGALIZATION THAT POINT OUT THE LOSS OF RESPECT FOR LAW ORDER AND SOCIETY THAT OCCURS DURING PROHIBITIONS ONE WELLKNOWN LEGALIZER ALBERT EINSTEIN NOTED THAT NOTHING IS MORE DESTRUCTIVE OF RESPECT FOR THE GOVERNMENT AND THE LAW OF THE LAND THAN PASSING LAWS WHICH CANNOT BE ENFORCED IT IS AN OPEN SECRET THAT THE DANGEROUS INCREASE OF CRIME IN THIS COUNTRY IS CLOSELY CONNECTED WITH THIS MR REAY ALSO ATTACKS LEGALIZERS FOR THE PROBLEMS OF GOVERNMENT DRUGSTORES AND ANY LINGERING BLACK MARKETS HE WRITES DRUGS ARE FAR TOO POTENT WHEN PURE BUT THE COCAINE IN COCACOLA CIRCA 1900 WAS BOTH PURE IN THE RELEVANT SENSE AND FAR LESS POTENT THAN DRUGS ON TODAY'S BLACK MARKET BAYER ONCE SOLD A HEROIN PILL THAT WAS PURE AND SAFE ENOUGH TO BE PRESCRIBED FOR INFANTS ON A LIMITED BASIS MR REAY WILLIAM BENNETT AND OTHER PROHIBITIONISTS SHOULD STOP BEATING THE STRAW MAN AND ADMIT THAT THEY SEEK NOT SOCIAL BETTERMENT BUT SOCIAL CONTROL 9302120137 930212 WHO'S NEWS ALAN HOOPS IS NAMED PRESIDENT AND CEO OF PACIFICARE HEALTH CYPRESS CALIF PACIFICARE HEALTH SYSTEMS INC SAID ALAN HOOPS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE EFFECTIVE APRIL 1 MR HOOPS 45 YEARS OLD SUCCEEDS TERRY HARTSHORN WHO WILL BECOME CHAIRMAN THE CURRENT CHAIRMAN AND FOUNDER OF THE HEALTHCARE SERVICES CONCERN SAMUEL J TIBBITTS 68 WAS NAMED CHAIRMAN EMERITUS AND VICE CHAIRMAN THE CHANGES WERE TRIGGERED BY THE DEPARTURE LAST YEAR OF PAUL TESLOW AS PRESIDENT AND CHIEF EXECUTIVE OF UNIHEALTH AMERICA A PRIVATELY OWNED BURBANK CALIF CONCERN THAT OWNS 54 OF PACIFICARE'S VOTING STOCK MR HARTSHORN 47 WILL SUCCEED MR TESLOW AT UNIHEALTH UNIHEALTH APPROACHED ME AND ASKED IF I WOULD CONSIDER TAKING ON A NEW CHALLENGE IT TOOK SEVERAL MONTHS TO WORK THROUGH I'LL STAY ACTIVE AT PACIFICARE AS CHAIRMAN MR HARTSHORN SAID PACIFICARE'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER POST WON'T BE FILLED IMMEDIATELY WHILE MR HOOPS EXAMINES THE SENIOR MANAGEMENT STRUCTURE MR HARTSHORN SAID IT IS POSSIBLE THAT THE POSITION WILL BE PERMANENTLY ELIMINATED THE VICE CHAIRMAN SLOT HAD BEEN VACANT SINCE THE RETIREMENT OF FRANK MCDOUGALL LAST YEAR 9302120135 930212 RAYMOND JAMES'S CHAIRMAN DEFENDS INTEGRITY OF FIRM BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL ST PETERSBURG FLA THOMAS A JAMES CHAIRMAN OF RAYMOND JAMES FINANCIAL INC DEFENDED THE INTEGRITY OF THE FIRM AT THE ANNUAL MEETING HERE SAYING RECENT NEWS ARTICLES ABOUT POSSIBLE FRONTRUNNING IN THE FIRM'S STOCK RESEARCH WAS HURTING THE COMPANY'S REPUTATION IN AN EMOTIONALLY CHARGED PRESENTATION MR JAMES REITERATED THAT THE FIRM HAD ON ITS OWN INITIATIVE REPORTED TO REGULATORS ITS CONCERNS ABOUT UNUSUAL TRADING IN ADVANCE OF ITS STOCK RECOMMENDATIONS INSTEAD OF BEING CREDITED HE SAID THE FIRM WAS BEING VILLIFIED THE BAD PUBLICITY HE ADDED HAS BEGUN TO HURT BUSINESS AT THE FIRM WHICH HAS GROWN RAPIDLY TO BECOME THE NATION'S LARGEST REGIONAL BROKERAGE REPORTING RECORD REVENUE AND EARNINGS FOR 1992 WE'VE LOST SOME BUSINESS HE SAID I DON'T THINK A LOT IN AN INTERVIEW AFTER THE MEETING MR JAMES SAID EXECUTIVES RECENTLY HAD TO REASSURE A CORPORATE FINANCE CLIENT ABOUT THE FIRM'S INTEGRITY MR JAMES SAID HIS UNDERWRITING TEAM SUCCEEDED IN KEEPING THE CLIENT BUT ONLY AFTER MUCH DISCUSSION ABOUT THE FIRM'S RECORD IN ADDITION MR JAMES SAID A RETAIL CUSTOMER HAD CLOSED A 16 MILLION ACCOUNT AFTER THE ADVERSE PUBLICITY CITING CONCERNS ABOUT THE FIRM'S HONESTY AT THE MEETING MR JAMES WAS PARTICULARLY CRITICAL OF SEVERAL ARTICLES IN THE NEW YORK TIMES WHICH WAS THE FIRST TO REPORT ON THE FRONTRUNNING ISSUE AT THE FIRM HE CHALLENGED THE FAIRNESS OF THE COVERAGE AS REPORTED RAYMOND JAMES INFORMED REGULATORS IN NOVEMBER ABOUT CONCERNS OF POSSIBLE FRONTRUNNING OR TRADING IN ANTICIPATION OF IMPENDING RESEARCH REPORTS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND THE NEW YORK STOCK EXCHANGE ARE MAKING INQUIRIES A SPOKESMAN FOR NEW YORK TIMES CO PUBLISHER OF THE TIMES SAID THE NEWSPAPER IS COMFORTABLE WITH THE COVERAGE OF THIS STORY OF COURSE AS WITH ANY STORY IF THERE WERE ANY ERRORS OF FACT WE WOULD CORRECT THEM MR JAMES ALSO DEFENDED RAYMOND JAMES'S PRACTICE OF PURCHASING SHARES IN THINLY TRADED OVERTHECOUNTER STOCKS IN ADVANCE OF ITS STOCK RECOMMENDATIONS AS A VALID MEANS OF ENABLING THE FIRM TO MEET CUSTOMERS' ORDERS HE SAID RAYMOND JAMES HAS MADE SUCH ADVANCE PURCHASES ONLY A FEW TIMES DURING THE PAST 13 MONTHS HE ADDED HOWEVER THAT HE HAD BEEN UPSET TO LEARN THAT THE FIRM HAD MADE A 66000 PROFIT ON THE TRANSACTIONS HE HAS ORDERED THAT SUCH STOCKPILED SHARES BE SOLD AT COST IN THE FUTURE MR JAMES WASN'T QUESTIONED BY SHAREHOLDERS ABOUT THE FRONTRUNNING AND THEY GAVE HIM A STANDING OVATION FOLLOWING HIS VIGOROUS DEFENSE OF THE FIRM 9302120134 930212 MANUFACTURERS CONSTRUCTION FIRMS RAISE OPTIMISM BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MANUFACTURERS' OPTIMISM ABOUT BUSINESS CONDITIONS ROSE IN JANUARY TO ITS HIGHEST LEVEL IN THE PAST THREE YEARS AND STRONG GROWTH IS EXPECTED IN THE NEXT FEW MONTHS DUN & BRADSTREET CORP SAID THE CONSTRUCTION INDUSTRY MEANWHILE SEES ITS BUSINESS CONDITIONS IMPROVING ALTHOUGH SLOWLY D&B SAID IN ITS JANUARY SURVEYS OF THE TWO INDUSTRIES THE SURVEYS BEGAN IN JANUARY 1990 MANUFACTURERS SURVEYED IN JANUARY WERE MORE OPTIMISTIC ABOUT INDUSTRY CONDITIONS THAN AT ANY TIME SINCE THE SURVEY OF 1000 MANUFACTURERS STARTED D&B SAID MANUFACTURERS ARE CONFIDENT THAT GROWTH IN THEIR SECTOR WILL BE STRONG THROUGH THE FIRST QUARTER SAID DOUGLAS P HANDLER MANAGER OF ECONOMETRIC ANALYSIS FOR DUN & BRADSTREET TALK FROM WASHINGTON ABOUT RESTORING INVESTMENT TAX CREDITS HAS BOOSTED EXPECTATIONS SOMEWHAT BUT PROSPECTIVE INCREASES IN CORPORATE TAX RATES COULD REVERSE THIS OPTIMISM THE D&B INDUSTRIAL SENTIMENT INDEX FOR THE NEXT THREE MONTHS ROSE FOR THE SECOND CONSECUTIVE MONTH TO 24 FROM 21 WHILE THE INDEX FOR THE PAST THREE MONTHS FELL TO FOUR FROM EIGHT THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING FIRMS EXPECTING INCREASES IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES MANUFACTURERS SAID PRODUCTION AND NEW ORDERS FELL SLIGHTLY IN THE THREE MONTHS PRIOR TO JANUARY AND DUN & BRADSTREET DESCRIBED THE DECLINE AS MOST LIKELY A TEMPORARY ADJUSTMENT FOLLOWING FIVE MONTHS OF STEADY GAINS IF PRODUCTION INCREASES ARE TO CONTINUE BEYOND THE FIRST QUARTER A FAVORABLE FISCAL POLICY EXPORT BOOST OR SOME OTHER STIMULUS WOULD BE NEEDED THE COMPANY SAID FOR THE NEXT THREE MONTHS EXPORT EXPECTATIONS ARE STEADY AND MANUFACTURERS WILL CONTINUE TO PUSH FOR INCREASES IN PRODUCTIVITY WHILE MAINTAINING EMPLOYMENT AT CURRENT LEVELS DUN & BRADSTREET SAID CONSTRUCTION FIRMS REMAIN OPTIMISTIC ABOUT THE COMING THREE MONTHS DESPITE A SHARP DECLINE IN ORDERS IN JANUARY THE CONSTRUCTION SURVEY COVERS 200 COMPANIES AND INCLUDES INDEXES OF NEW ORDERS EMPLOYMENT AND PRICES CONSTRUCTION ACTIVITY TYPICALLY DROPS OFF IN JANUARY MR HANDLER SAID BUT WITH OPTIMISM RISING THE RESULTS SUGGEST THAT CONTRACTORS ARE ANTICIPATING A BETTER SPRING ORDERS IN JANUARY SLID TO NEGATIVE 27 IN FROM NEGATIVE NINE IN DECEMBER BUT THE NEW ORDERS INDEX FOR THE COMING THREE MONTHS ROSE 13 POINTS TO 27 FROM 14 IN DECEMBER EMPLOYMENT IN CONSTRUCTION STILL REMAINS BLEAK MR HANDLER SAID MORE THAN 90 OF THE RESPONDENTS REPORTED THAT THEIR PAYROLLS WERE EITHER NORMAL OR BELOW NORMAL FOR THIS TIME OF YEAR ONLY 28 OF THE FIRMS SURVEYED INTEND TO HIRE NEW EMPLOYEES DOWN SIGNIFICANTLY FROM THE 36 IN JANUARY 1992 HE SAID THE INDEX FOR CURRENT CONSTRUCTION PRICES AND THE INDEX TO RAISE PRICES WERE ESSENTIALLY UNCHANGED UNDERSCORING THE CAUTION PERVADING THE SECTOR AND THE INABILITY TO PASS ALONG COST INCREASES TO CUSTOMERS MR HANDLER SAID 9302120133 930212 WORLD MARKETS LONDON SHARE PRICES RISE ON BARGAINHUNTING TRIGGERED BY STRENGTH IN CORPORATE EARNINGS A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS ADVANCED CAUTIOUSLY THURSDAY AS ENCOURAGING CORPORATE RESULTS TRIGGERED BARGAINHUNTING THE TOKYO MARKET WAS CLOSED THURSDAY FOR A JAPANESE HOLIDAY IN TOKYO FRIDAY THE NIKKEI 225STOCK INDEX FELL 11629 POINTS FROM WEDNESDAY TO CLOSE THE MORNING SESSION AT 1697361 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX WHICH LOST A TOTAL OF 536 POINTS IN THE PREVIOUS TWO SESSIONS ROSE 179 POINTS TO 28343 THE FT 30STOCK INDEX CLIMBED 113 POINTS TO 21860 VOLUME WAS 8894 MILLION SHARES UP SHARPLY FROM 6176 MILLION SHARES A DAY EARLIER BRITISH BLUECHIP COMPANIES POSTED REASONABLY STRONG EARNINGS RESULTS BUOYING THE MARKET INVESTORS ALSO TOOK HEART FROM AN EASING OF THE STOCK RIGHTSISSUE WORRIES THAT HAD BEEN DOGGING THE MARKET IN THE PAST FEW SESSIONS AND FROM THE PREVIOUS DAY'S GAINS BY DRUG STOCKS IN NEW YORK STILL ANALYSTS WERE CAUTIOUS ABOUT PREDICTING WHETHER LONDON STOCKS WOULD CONTINUE TO CLIMB BECAUSE STERLING'S WEAKNESS HAS DENTED INTERESTRATE OPTIMISM AND TODAY IS THE END OF THE MARKET'S CURRENT TRADING ACCOUNT IN FRANKFURT STOCK PRICES FINISHED MIXED AS THE MARKET WAS UNABLE TO LATCH ONTO ANY TREND THE DAX 30STOCK INDEX EDGED UP 124 POINTS TO 165105 MARKING ANOTHER NEW HIGH FOR THIS YEAR OF THE DAX ISSUES 15 ROSE AND 14 FELL TRADING MOVED ONLY WITHIN A 6 2/3POINT RANGE INVESTORS WEREN'T SURE WHETHER THE FRANKFURT MARKET WAS CONSOLIDATING OR BUILDING STEAM FOR A RALLY DESPITE THE DAX'S CONTINUED NARROW MOVEMENTS AND THE SPATE OF SOBERING REPORTS ABOUT THE GERMAN ECONOMY BULLISHNESS ABOUT GERMAN EQUITIES WASN'T DIMINISHED BECAUSE THE MARKET EXPECTS A FURTHER EASING IN THE COUNTRY'S INTEREST RATES BUYING OPPORTUNITIES ALSO WERE EXPECTED BECAUSE FOREIGN INVESTORS' PORTFOLIOS CONTINUE TO BE UNDERWEIGHTED IN GERMAN STOCKS ELSEWHERE IN EUROPE PARIS STOCKS GAINED DRIVEN LARGELY BY FUTURES AND PROGRAM TRADING FOLLOWING THE EUPHORIA ABOUT GERMANY'S RATE CUTS LAST WEEK THE PICTURE IN FRANCE HAS BECOME MUDDIER AS THE MARKET WAITED TO SEE WHETHER THE BANK OF FRANCE ALSO WOULD EASE ITS MONETARY POLICY AMSTERDAM SHARES MOSTLY ADVANCED SUPPORTED BY A BUOYANT DOLLAR AND THE GAINS IN LONDON AND FRANKFURT AS WELL AS DUTCH EXPECTATIONS THAT GERMANY WILL EASE ITS LENDING RATES FURTHER MADRID PRICES SURGED ON GROWING EXPECTATIONS OF REDUCTION TODAY IN SPAIN'S BENCHMARK INTEREST RATE IN MILAN SHARES SANK IN NERVOUS TRADING AMID POLITICAL RUMORS A WAVE OF PANIC SPURRED FRANTIC SELLING WHEN THE RUMORS LATER DENIED EMERGED THAT PRIME MINISTER GIULIANO AMATO WAS UNDER INVESTIGATION IN A BRIBERY AND CORRUPTION SCANDAL THE MARKET HAD ALREADY BEEN AGITATED BY THE SCANDAL WHICH HAS IMPLICATED LEADING INDUSTRIALISTS AND POLITICIANS AND FORCED THE RESIGNATION WEDNESDAY OF MR AMATO'S JUSTICE MINISTER STOCKHOLM EQUITIES ADVANCED IN HEAVY TRADING EXTENDING A WINNING STREAK TO SIX SESSIONS IN A ROW THOUGH THE PACE OF THE CLIMB SLOWED AND PRICES ENDED BELOW INTRADAY HIGHS SYDNEY SHARES ROSE FOR THE SIXTH CONSECUTIVE SESSION TAKING THE MAIN INDEX TO ITS HIGHEST LEVEL SINCE EARLY AUGUST MARKET SENTIMENT WAS LIFTED BY PLEDGES MADE DURING THE AUSTRALIAN ELECTION CAMPAIGN TO CUT CERTAIN TAXES AND SPUR ECONOMIC GROWTH SINGAPORE STOCKS CONSOLIDATED FURTHER AND PRICES ENDED MIXED HONG KONG SHARES ROSE AS THE CHINESE SIDE IN A SINOBRITISH POLITICAL DISPUTE OVER THE TERRITORY'S FUTURE REMAINED QUIET THOUGH LOW TURNOVER CONTINUED TO SUGGEST CAUTION ABOUT THE STRIFE TAIPEI STOCKS REBOUNDED FROM THE PREVIOUS DAY'S STEEP FALL AND CLIMBED BROADLY IN HECTIC TRADING MANILA EQUITIES SURGED IN HEAVY VOLUME ON A TECHNICAL BREAKOUT AND ON PARTICIPATION BY FOREIGN FUNDS SEOUL PRICES ROSE FOR THE FOURTH CONSECUTIVE DAY ON STRENGTH IN LARGECAPITALIZATION SHARES AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH TELECOMMUNICATIONS ROSE 3 1/2 PENCE TO 411 1/2 PENCE 587 PRETAX PROFIT FOR THE THIRD QUARTER ENDED DEC 31 FELL 71 TO 705 MILLION 101 BILLION FROM A YEAR EARLIER AS THE RECESSION DEPRESSED THE VOLUME OF CALLS THE RESULTS WERE AT THE BOTTOM OF THE RANGE OF ANALYSTS' PREVIOUS ESTIMATES THOUGH A VOLUME RECOVERY WAS EVIDENT ROTHMANS INTERNATIONAL JUMPED 13 OR 22 TO 599 THE TOBACCO COMPANY IS CONSIDERING MERGING TWO OF ITS ASIAN UNITS ROTHMANS OF PALL MALL MALAYSIA BHD AND ROTHMANS INDUSTRIES LTD OF SINGAPORE ALONG WITH ITS TOBACCO INTERESTS IN NORTHEAST ASIA AND FLOATING THE NEW HOLDING COMPANY ON THE HONG KONG KUALA LUMPUR AND SINGAPORE STOCK EXCHANGES THE PARENT WOULD RETAIN 50 OF THE NEW COMPANY ROTHMANS OF PALL MALL LTD AND SELL THE REST IN AN INITIAL PUBLIC OFFERING THE NEW COMPANY WOULD HAVE A MARKET CAPITALIZATION OF MORE THAN 15 BILLION LONRHO ADVANCED 7 OR 93 TO 82 THE CONGLOMERATE'S PRETAX PROFIT FOR THE YEAR ENDED SEPT 30 SLUMPED 61 TO 80 MILLION FROM A YEAREARLIER RESTATED 205 MILLION LARGELY BECAUSE OF SALES OF BUSINESSES TO REDUCE LONRHO'S DEBT BUT THE RESULTS WERE IN LINE WITH THE COMPANY'S PREVIOUS ESTIMATE AS WAS THE 69 REDUCTION IN THE DIVIDEND TO 4 PENCE A SHARE THE FISCAL 1991 RESULTS WERE RESTATED TO REFLECT AN ACCOUNTING CHANGE FOR INTANGIBLE ASSETS TRAFALGAR HOUSE SANK 12 OR 14 TO 76 1/2 ON NEWS THAT THE DIVERSIFIED INDUSTRIAL GROUP PLANS TO RAISE 2045 MILLION THROUGH A RIGHTS ISSUE AND TO SLASH THE DIVIDEND 46 TRAFALGAR ALSO WARNED OF SLOWER ACTIVITY AT ITS CORE ENGINEERING AND CONSTRUCTION OPERATIONS OVER THE NEXT YEAR TO 18 MONTHS IN PARIS L'OREAL ROSE 5 FRENCH FRANCS TO 1045 FRANCS 18627 THE PHARMACEUTICAL BEAUTY PRODUCTS AND PERFUME COMPANY ESTIMATED THAT THE GROWTH IN 1992 NET INCOME WILL EXCEED THE 12 INCREASE IN REVENUE BUT EARNINGS DATA WEREN'T RELEASED IN MADRID BANCO ESPANOL DE CREDITO LOST 120 PESETAS OR 49 TO 2315 PESETAS 1961 HURT BY NEWS THAT THE BIG BANK PLANS TO RAISE 52 BILLION PESETAS 4406 MILLION THROUGH SPAIN'S BIGGESTEVER EQUITY RIGHTS ISSUE 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 IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9302120132 930212 HEALTH TAINTEDHAMBURGER INCIDENT HEATS UP DEBATE OVER US MEATINSPECTION SYSTEM BY RICHARD GIBSON AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE TAINTEDHAMBURGER OUTBREAK IN THE PACIFIC NORTHWEST ALMOST CERTAINLY WILL TRIGGER AN OVERHAUL OF THE NATION'S ANTIQUATED MEATINSPECTION SYSTEM BUT SCIENTISTS AND OTHER EXPERTS ARE DIVIDED OVER HOW THE SYSTEM SHOULD BE MODERNIZED AND MANY SAY NO QUICK FIX IS LIKELY STILL THE DEATH OF A CHILD AND HUNDREDS OF ILLNESSES FROM BACTERIA IN HAMBURGER HAVE REGULATORS AND PUBLICHEALTH OFFICIALS SCRAMBLING TO PUSH THROUGH LONGSTALLED CHANGES THE GRIDLOCK IS ENDED SAYS JAMES MARSDEN VICE PRESIDENT OF SCIENTIFIC AND TECHNICAL AFFAIRS FOR THE AMERICAN MEAT INSTITUTE WHICH REPRESENTS MEATPACKERS THE BIGGEST PROBABLE CHANGE IS THAT FEDERAL INSPECTORS WILL BEGIN BROAD SCREENING OF MEAT FOR MICROORGANISMS THE PRIMARY SOURCE OF FOODBORNE DISEASE IN ADDITION STATE AND FEDERAL MANDATED TEMPERATURES FOR COOKING RAW HAMBURGER ARE ALMOST CERTAIN TO RISE MOREOVER THE FOOD INDUSTRY AND REGULATORS ARE LIKELY TO GIVE CONTROVERSIAL TECHNOLOGIES SUCH AS IRRADIATION ANOTHER CHANCE MEAT INSPECTION HAS CHANGED LITTLE SINCE REACTION TO UPTON SINCLAIR'S 1906 BOOK THE JUNGLE ON DIRTY PACKINGHOUSE CONDITIONS GOT THE FEDERAL GOVERNMENT INTO THE WATCHDOG BUSINESS DESPITE REPEATED WARNINGS THAT VISUAL INSPECTION DOESN'T CATCH MICROORGANISMS INCLUDING ONE IN 1990 FROM THE NATIONAL ACADEMY OF SCIENCES POLITICS HAVE PREVENTED MEANINGFUL IMPROVEMENTS THE REAGAN AND BUSH ADMINISTRATIONS SOUGHT TO TRIM INSPECTOR RANKS AND LET MEATPACKERS TAKE MORE RESPONSIBILITY FOR SCREENING MEAT THEMSELVES USING LABORATORY TECHNIQUES TO DETECT MICROORGANISMS BUT CONSUMER GROUPS RAISED SUCH A HOWL THAT THE IDEA WAS DROPPED NOW THE CLINTON ADMINISTRATION AND CONGRESS SEEM READY TO TAKE A NEW TACK HIRE MORE INSPECTORS AND HAVE THEM ALSO MEASURE FOR MICROORGANISMS AGRICULTURE SECRETARY MIKE ESPY SAID YESTERDAY HE HAS AUTHORITY TO HIRE 160 MORE MEAT AND POULTRY INSPECTORS HIS DEPARTMENT NOW HAS 7200 INSPECTORS STILL CURRENT DETECTION METHODS ARE SO SLOW THAT ANY INSPECTORS IN A HIGHSPEED PROCESSING PLANT WOULD BE ABLE TO KEEP TRACK OF ONLY THE NUMBER OF MICROORGANISMS IN MEAT NOT WHETHER THEY ARE HARMFUL NOR CAN THEY DETECT PATHOGENS SUCH AS THE VIRULENT E COLI STRAIN BLAMED IN THE TAINTEDHAMBURGER EPISODE IN TIME TO KEEP IT FROM REACHING CONSUMERS IT TYPICALLY TAKES DAYS FOR THAT PATHOGEN TO SHOW UP IN TESTS WE AREN'T AT THE POINT WHERE WE CAN TELL IF EACH CARCASS GOING BY IS CONTAMINATED WITH PATHOGENIC ORGANISMS SAYS MORRIS POTTER A VETERINARY EPIDEMIOLOGIST AT THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA BUT MICROBIAL TESTING WOULD LET INSPECTORS LOCATE LIKELY CONTAMINATION POINTS IN PLANTS HE SAYS SURVEYING CARCASSES THE AGRICULTURE DEPARTMENT'S INITIAL GOAL SEEMS MODEST IT WILL UNDERTAKE AN ANNUAL SURVEY OF CARCASSES TO DETERMINE WHETHER OVER TIME THE TOTAL POPULATION OF MICROORGANISMS IS DECLINING SOME CONSUMER ADVOCATES WANT THE ADMINISTRATION TO GO MUCH FURTHER BY IMPOSING A MICROBIAL LIMIT AS WELL AS CREATING A FOOD SAFETY AGENCY THAT COMBINES CURRENT FUNCTIONS OF THE FOOD AND DRUG ADMINISTRATION AND AGRICULTURE DEPARTMENT OUTBREAKS OF E COLI 0157H7 LIKE THAT IN THE NORTHWEST AREN'T NEW BUT THE LATEST OUTBREAK'S SCOPE AND TIMING COMING JUST AS A NEW ADMINISTRATION TAKES POWER IN WASHINGTON MIGHT FINALLY ACCELERATE A CHANGE IN MEAT INSPECTION SAYS SEN TOM DASCHLE A SOUTH DAKOTA DEMOCRAT WHO FOUGHT EARLIER ATTEMPTS TO CUT FEDERAL INSPECTORS IF THERE IS A SILVER LINING TO THIS DISASTER THIS IS IT IT WAS A WAKEUP CALL AGREES BERT BARTLESON TECHNICAL EXPERT WITH WASHINGTON STATE'S FOOD PROTECTION PROGRAM MOST OF THE RECENT E COLI ILLNESSES OCCURRED IN WASHINGTON WORK BY MR BARTLESON AND OTHERS TIED THEM TO CONTAMINATED HAMBURGER SOLD AT SOME RESTAURANTS OF THE JACK IN THE BOX FASTFOOD CHAIN A UNIT OF FOODMAKER INC IN SAN DIEGO BUT EXPERTS DISAGREE ON HOW BEST TO PREVENT OUTBREAKS FOR STARTERS THEY CAN'T AGREE ON THE RIGHT TEMPERATURE AT WHICH TO COOK A HAMBURGER PATTY SO ALL E COLI ARE KILLED THE FDA HAS LONG RECOMMENDED 140 DEGREES FAHRENHEIT MICHAEL DOYLE A FOOD MICROBIOLOGY EXPERT AT THE UNIVERSITY OF GEORGIA SAYS THAT'S WAY TOO LOW AFTER MCDONALD'S CORP WAS HIT BY AN E COLI INCIDENT IN THE EARLY 1980S DR DOYLE DID TIMETEMPERATURE TESTS THAT LED THE CHAIN TO RAISE ITS COOKING TEMPERATURE TO 160 DEGREES AT 140 DEGREES DR DOYLE SAYS A RESTAURANT WOULD HAVE TO COOK A HAMBURGER FOR MORE THAN FIVE MINUTES FAR TOO LONG FOR A QUICKSERVE OUTLET BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC SAYS IT ALSO COOKS ITS FLAMEBROILED BURGERS TO AN INTERNAL TEMPERATURE OF 160 DEGREES HARDEE'S FOOD SYSTEMS INC A UNIT OF IMASCO LTD SPECIFIES AT LEAST 160 DEGREES BUT SHOOTS FOR 165 A SPOKESMAN SAYS WENDY'S INTERNATIONAL INC REQUIRES 165 DEGREES TACO BELL A UNIT OF PEPSICO INC SAYS IT COOKS GROUND BEEF USED IN ITS MEXICAN FOOD TO 165 DEGREES TWICE FIRST AT BEEFPROCESSING SITES AND AGAIN IN THE RESTAURANTS FEDERAL AUTHORITIES THOUGH SAY SUCH HIGH TEMPERATURES MAY AMOUNT TO OVERCOOKING DOUGLAS ARCHER DEPUTY DIRECTOR OF THE FDA'S FOOD SAFETY AND APPLIED NUTRITION UNIT SAYS 140 DEGREES SHOULD BE ADEQUATE ASSUMING ALL PARTS OF A PATTY GET THAT HOT DURING COOKING STILL TO BE PRUDENT THE FDA ISSUED WHAT HE CALLS AN INTERIM RECOMMENDATION TO ALL STATES TO ADOPT WASHINGTON STATE'S 155DEGREE STANDARD BUT SOME STATES AREN'T GOING ALONG WITH THAT WITHOUT HAVING A REAL SERIOUS PROBLEM IN ILLINOIS WE'LL RETAIN THE 140DE GREE INTERNAL COOKING TEMPERATURE SAYS SHIRLEY BOHM PROGRAM MANAGER FOR THE STATE PUBLIC HEALTH DEPARTMENT'S FOOD DRUG AND DAIRIES DIVISION IN SO DOING SHE ACKNOWLEDGES WE'RE PLAYING THE LAW OF AVERAGES OTHER STATE HEALTH AUTHORITIES FAVOR COLOR RATHER THAN TEMPERATURE IN DETERMIN ING WHETHER MEAT IS SAFE TO EAT THERE SHOULDN'T BE ANY PINK IN A COOKED BURGER SAYS MINNESOTA STATE EPIDEMIOLOGIST MICHAEL OSTERHOLM HAMBURGER PATTIES CAN CONTAIN HOT AND COLD SPOTS LIKE MICROWAVED FROZEN MEALS HE SAYS SO TESTING WITH A THERMOMETER ISN'T ALWAYS ACCURATE HIS DEPARTMENT ALSO ADVISES CONSUMERS TO BE SURE THAT ANY JUICES FROM A BURGER ARE CLEAR NOT BLOODY THE NATIONAL LIVE STOCK AND MEAT BOARD SUGGESTS THAT BURGERS BE COOKED UNTIL THEIR CENTERS ARE LIGHT GRAY REFRIGERATE OR FREEZE MEATS IMMEDIATELY AFTER PURCHASING PLACE RAW MEATS IN A PLASTIC BAG OR PAN TO PREVENT JUICES FROM DRIPPING ON OTHER FOODS DEFROST FROZEN MEAT IN REFRIGERATOR NOT AT ROOM TEMPERATURE OR IN WARM WEATHER COOK GROUND BEEF WITHOUT INTERRUPTION PARTIAL COOKING MAY ENCOURAGE BACTERIAL GROWTH NEVER REFREEZE DEFROSTED GROUND BEEF REFRIGERATE COOKED LEFTOVERS PROMPTLY DIVIDE LARGE QUANTITIES TO ACCELERATE COOLING AFTER HANDLING FRESH MEAT WASH HANDS THOROUGHLY 9302120131 930212 WHO'S NEWS SANTA ANITA OPERATING CO SANTA ANITA OPERATING CO ARCADIA CALIF ROBERT P STRUB 74 YEARS OLD HAS RETIRED AS CHIEF EXECUTIVE OFFICER OF THE THOROUGHBRED RACING CONCERN STEPHEN F KELLER 54 SUCCEEDS MR STRUB AS CEO AND CONTINUES AS PRESIDENT AND CHIEF OPERATING OFFICER 9302120130 930212 BANK SHARES IN UK SEEN RISING FURTHER SECTOR EXPECTED TO REBOUND AS LOAN PROBLEMS EASE BARCLAYS IS A FAVORITE BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON UK BANK SHARES HAVE BEEN STEAMING AHEAD LATELY BUT SOME ANALYSTS THINK THEY HAVE FURTHER TO GO WE'RE QUITE BULLISH ON THIS SECTOR SAYS NICK COLLIER OF MORGAN STANLEY IN LONDON BANKS OVER THE NEXT FOUR TO FIVE YEARS WILL BE ON A SHARPLY UPWARD TREND WITH REGARD TO PROFITS AS BRITAIN HEADS INTO A PERIOD OF LOW REAL INTEREST RATES AND LOW LONGTERM INFLATION HE PREDICTS BANKS WILL BENEFIT FROM A MORE STABLE OPERATING ENVIRONMENT LOSSES ON BAD DEBTS HAVE PASSED THEIR PEAK AND MOVES TO CUT STAFFING AND RATIONALIZE OPERATING METHODS SHOULD SOON BEAR FRUIT IN THE FORM OF HIGHER PROFITS THOUGH THERE'S LIGHT AT THE END OF THE TUNNEL FOR BRITISH BANKS AFTER A RECESSION LASTING NEARLY THREE YEARS THAT HAS FORCED THEM TO SET ASIDE LOANLOSS PROVISIONS AMOUNTING TO ABOUT 10 OF THEIR LOAN PORTFOLIOS IT ISN'T YET COMPLETELY CLEAR JUST WHO WILL BENEFIT MOST ONE NAME THAT CROPS UP FREQUENTLY IS BARCLAYS BANK PLC NOT SO LONG AGO IT WAS FIRMLY IN THE DOGHOUSE BECAUSE OF DISASTROUS LOSSES ON BAD DEBTS BUT BRITAIN'S BIGGEST CLEARING BANK IS NOW WIDELY TIPPED AS A RECOVERY STOCK NOT EVERYONE IS CONVINCED THOUGH CHRIS ELLERTON OF SG WARBURG SECURITES FOR EXAMPLE SAYS HE THINKS BARCLAYS COULD STILL FACE PROBLEMS WITH ITS EXPOSURE TO PROPERTY LENDING ELSEWHERE TSB GROUP PLC ABBEY NATIONAL PLC NATIONAL WESTMINSTER BANK PLC AND STANDARD CHARTERED BANK ALL HAVE THEIR ADVOCATES STRIKINGLY HOWEVER ONE STOCK THAT MANY ANALYSTS SEEM LESS KEEN ON THESE DAYS IS LLOYDS BANK PLC THE STAR PERFORMER AMONG UK BANKS DURING THE PAST THREE YARS THAT'S BECAUSE MOST ANALYSTS THINK LLOYDS HAS PRETTY MUCH EXHAUSTED ITS POTENTIAL FOR IMPROVING PROFITS BY ADDITIONAL COSTCUTTING AND BETTER FOCUSING OF ITS BUSINESS WE HAVE BEEN CONSISTENT FANS OF LLOYDS SAYS ROBERT LAW OF LEHMAN BROTHERS INTERNATIONAL BUT THE VALUATION IS NOW LOOKING PRETTY DEMANDING TO SUPPORT CURRENT PRICES HE ASSERTS YOU WOULD HAVE TO SEE SOME EVIDENCE THAT THE GAIN IN EFFICIENCIES THE COMPANY HAS ACHIEVED OVER THE PAST FEW YEARS CAN CONTINUE AT THE MOMENT THAT APPEARS QUESTIONABLE HE AND OTHER ANALYSTS SAY IT'S DIFFICULT TO SEE WHAT MORE THEY CAN DO MR LAW COMMENTS LLOYDS KICKS OFF THE ANNUAL REPORTING ROUND FOR THE UK BANKING SECTOR TODAY ANALYSTS EXPECT IT TO REPORT STRONG PRETAX EARNINGS WITH FORECASTS RANGING FROM ABOUT 675 MILLION TO ABOUT 785 MILLION 9625 MILLION TO 112 BILLION COMPARED WITH 45 MILLION IN 1991 IN KEEPING WITH A POLICY OF REWARDING SHAREHOLDERS LLOYDS IS EXPECTED TO RAISE ITS DIVIDEND TO 183 PENCE A SHARE OR POSSIBLY HIGHER FROM 167 PENCE FOR 1991 THE DOUBTS AROUND LLOYDS CONCERN ITS ABILITY TO GROW FURTHER IN AN ENVIRONMENT WHERE DEMAND FOR CREDIT FROM HIGHQUALITY BORROWERS REMAINS WEAK FIRST HALF 1992 FIGURES SHOWED SOME CONTRACTION IN ITS BUSINESS REFLECTING A DELIBERATE POLICY TO WITHDRAW FROM UNPROFITABLE AREAS IN THE PAST LLOYDS HAS BEEN BUOYED BY ITS ABILITY TO GENERATE EARNINGS FROM FEEPRODUCING BUSINESS SUCH AS LIFE INSURANCE BUT OTHER BANKS ARE COMPETING MORE AND MORE IN THIS ARENA PUTTING PRESSURE ON LLOYDS TO COME UP WITH SOMETHING NEW TO MAINTAIN ITS LEADERSHIP NATWEST DUE TO REPORT ON FEB 23 IS A CASE IN POINT IT HAS RECENTLY LAUNCHED ITS OWN LIFE INSURANCE SUBSIDIARY THOUGH DIVIDENDS FROM THIS VENTURE WON'T START COMING THROUGH FOR A WHILE NATWEST SEEMS TO HAVE TURNED A CORNER IN EARNINGS GROWTH WITH ITS US SUBSIDIARY BACK IN THE BLACK AND ITS UK OPERATIONS BEING MANAGED WITH GREATER EFFICIENCY NATWEST IS EXPECTED TO SHOW A SHARP IMPROVEMENT IN PRETAX EARNINGS TO ABOUT 450 MILLION FROM 110 MILLION IN 1991 REFLECTING ITS NEED TO STRENGTHEN ITS CAPITAL POSITION HOWEVER IT WON'T FOLLOW LLOYDS IN RAISING ITS DIVIDEND PAYING INSTEAD AN UNCHANGED 175 PENCE MIDLAND BANK NOW OWNED BY HSBC HOLDINGS PLC WILL UNVEIL ITS 1992 FIGURES MARCH 3 BUT OF THE FOUR BIG UK CLEARING BANKS IT'S THE BARCLAYS ANNOUNCEMENT DUE MARCH 4 THAT THE MARKET IS HOLDING ITS BREATH FOR THOUGH BARCLAYS IS WIDELY EXPECTED TO REPORT AT BEST ONLY A MARGINAL PROFIT FOR 1992 AT PRETAX LEVEL AND PROBABLY EVEN A LOSS COMPARED WITH A PRETAX PROFIT IN 1991 OF 533 MILLION THE POOR 1992 FIGURES WILL MASK A SUBSTANTIAL IMPROVEMENT IN OPERATING PROFITS AS A RESULT UNLESS LOSSES ON BAD DEBTS ARE MUCH HIGHER THAN THE MARKET EXPECTS SAYS HUGH PYE OF ROBERT FLEMING SECURITIES BARCLAYS SHOULD BE ABLE TO AFFORD TO MAINTAIN A DIVIDEND FROM ITS RESERVES OF 2115 PENCE A SHARE IF THAT HAPPENS HE PREDICTS BARCLAYS SHARES WILL RISE TO ABOUT 500 PENCE FROM 415 PENCE CURRENTLY WITH A YIELD OF 67 AT CURRENT PRICES BARCLAYS AT THE MOMENT IS YIELDING A PREMIUM TO CASH DEPOSITS HE COMMENTS THIS WON'T BE THE CASE FOR VERY LONG NOT EVERYONE AGREES ON TIMING STEVEN THORN OF HOARE GOVETT THINKS BANK SHARES FOR THE MOMENT MAY HAVE RISEN SLIGHTLY TOO HIGH THOUGH HE TOO FAVORS BARCLAYS HE SUGGESTS WAITING UNTIL AFTER BANK SHARES GO EXDIVIDEND IN MIDMARCH BEFORE BUYING INTO THE STOCK THERE'S USUALLY A SLIGHT UNDERPERFORMANCE AFTER THE DIVIDEND HAS BEEN PAID HE SAYS MORGAN STANLEY'S MR COLLIER IS SIMILARLY BULLISH ON BARCLAYS AND HE ALSO LIKES NATWEST CURRENTLY TRADING AT ABOUT 432 PENCE WE EXPECT THE TOTAL RETURN ON THESE STOCKS TO COME OUT IN EXCESS OF 20 ANNUAL COMPOUND GROWTH INCLUDING DIVIDENDS OVER THE NEXT FOUR YEARS HE SAYS ROBERT FLEMING'S MR PYE FAVORS TSB WHICH HE SAYS IS FINALLY MAKING PROGRESS IN TACKLING ITS PROBLEMS WITH BAD DEBTS AND FOCUSING ON ITS BUSINESS AS A MASSMARKET RETAIL SUPPLIER OF FINANCIAL SERVICES TSB ANNOUNCED DISAPPOINTING RESULTS FOR ITS FISCAL YEAR ENDED SEPT 30 1992 BUT IT HAS STRONG CAPITAL RATIOS AND CAN MAINTAIN A HEALTHY DIVIDEND POLICY AS IT MANAGES DOWN ITS PROBLEMS AT ITS UNPROFITABLE MERCHANT BANK SUBSIDIARY HILL SAMUEL HE SAYS TSB WILL BECOME MORE LIKE ABBEY NATIONAL AS A HIGHASSET QUALITY PLAYER AND IT'S LIKELY TO BE RERATED AS SUCH IN THE MARKET FOR THE ADVENTUREMINDED MR PYE TIPS STANDARD CHARTERED WHICH ANNOUNCES ITS RESULTS ON MARCH 10 DESPITE PROBLEMS CAUSED BY A SHARETRADING FRAUD IN INDIA LAST YEAR STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED PLC HAS LARGELY OVERCOME THE BAD DEBT AND ORGANIZATIONAL PROBLEMS THAT DOGGED IT DURING THE 1980S ON TOP OF THAT IT'S NOW THE SUBJECT OF SPECULATION AS A POSSIBLE TAKEOVER TARGET WHETHER OR NOT ANY BID MATERIALIZES MR PYE NOTES STANDARD CHARTERED HAS THE ADVANTAGE LIKE HSBC OF OFFERING EXPOSURE TO THE BUOYANT ASIA MARKET INDEED HE SAYS STANDARD CHARTERED IS NOW MORE OF A PURE HONG KONG PLAY THAN HSBC FOLLOWING THE LATTER'S ACQUISITION OF MIDLAND IF THERE'S A BID IT WILL BE 8 MINIMUM FOR STANDARD CHARTERED SHARES HE PREDICTS WELL ABOVE CURRENT PRICES OF AROUND 645 PENCE BUT EVEN ON FUNDAMENTALS IT LOOKS QUITE ATTRACTIVE 9302120129 930212 TECHNOLOGY & HEALTH IBM SLASHES PC PRICES IN US EUROPE MOVING SWIFTLY TO COUNTER RIVALS' CUTS BY RICHARD L HUDSON AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL THE PERSONALCOMPUTER PRICE WAR HEATED UP ON BOTH SIDES OF THE ATLANTIC AS INTERNATIONAL BUSINESS MACHINES CORP SLICED US AND EUROPEAN PRICES IN AN UNUSUALLY SPEEDY RESPONSE TO RIVALS' ACTIONS IN THE US IBM WAS RESPONDING TO PC PRICE CUTS MADE TUESDAY BY DELL COMPUTER CORP IN EUROPE THE COMPUTER COMPANY STRUCK BACK AGAINST MARKDOWNS MADE MONDAY BY COMPAQ COMPUTER CORP IBM'S COUNTERMOVES CONFIRMED THAT THE INDUSTRY'S VICIOUS PRICESLASHING WHICH HAS BEEN IN FULL SWING SINCE COMPAQ INTRODUCED SOME CHEAP PCS LAST SUMMER ISN'T LIKELY TO END SOON THE LATEST PRICE CUTS ALSO PROVIDED MORE EVIDENCE THAT IBM OF ARMONK NY IS SHEDDING ITS FORMERLY SLUGGISH WAYS IN THE PC MARKET WHERE IT REMAINS THE UNITSHARE LEADER IN THE US IBM TOOK AS MUCH AS 16 OFF THE PRICE OF SOME MODELS INCLUDING ITS HIGHVOLUME PS/VALUEPOINT COMPUTERS AND ONE THINKPAD NOTEBOOKSIZED MACHINE THE ACTION REALIGNED IBM'S PRICES AFTER DELL'S ANNOUNCEMENT THAT IT CLIPPED PRICES ACROSS ITS ENTIRE PC LINE BY 5 TO 22 A MOVE THAT SEEMS TO HAVE REIGNITED TITFORTAT PRICE CUTS BY MAJOR PC MAKERS AFTER A BRIEF PERIOD OF RELATIVE STABILITY IN EUROPE IBM PRICE CUTS OF AS MUCH AS 20 CONFIRMED YET ANOTHER STAGE IN A WAR THAT ONE NEWSLETTER SAID HAS REDUCED AVERAGE BRITISH PC PRICES FOR EXAMPLE AS MUCH AS 54 IN THE 12 MONTHS ENDED NOV 31 COMPAQ SLASHED ITS EUROPEAN PC PRICES MONDAY BY 7 TO 49 THE LATEST EUROPEAN CUTS ON IBM'S PS/VALUEPOINT AND ENTRYLEVEL PS/2 COMPUTERS BUT NOT ON ITS MASSMARKET AMBRA OR PS/1 LINES ARE LIKELY TO BE ECHOED BY COMPANIES ACROSS EUROPE EUROPEAN EXECUTIVES AT DELL AND ITALY'S ING C OLIVETTI & CO SAID THEY'RE CONSIDERING CUTS WE ARE EVALUATING THE SITUATION AND WE WON'T STAY STILL SAID ERNESTO MUSUMECI AN OLIVETTI EXECUTIVE VICE PRESIDENT HE ADDED THAT HE EXPECTS A FURTHER ROUND OF PRICECUTTING BETWEEN JUNE AND SEPTEMBER WHEN NEW PCS BASED ON A NEXTGENERATION MICROCHIP FROM INTEL CORP ARE DUE BRUCE SINCLAIR HEAD OF DELL'S NORTHERN EUROPEAN OPERATIONS SAID THE COMPANY IS STILL STUDYING THE CUTS BUT YOU CAN EXPECT TO SEE SOME PRICE MOVES FROM US SEPARATELY IBM SAID IT HIRED A COLORFUL NEW PITCHMAN FOR ITS EUROPEAN PC ADS THE PINK PANTHER THE WELLKNOWN CARTOON CHARACTER WILL BE IBM'S FIRST PC MASCOT SINCE IT RETIRED CHARLIE CHAPLIN'S LITTLE TRAMP CHARACTER WHICH IT USED IN WORLDWIDE TELEVISION ADS TO DEMYSTIFY COMPUTER TECHNOLOGY AND HELP THE SUCCESS OF ITS FIRST PC OFFERINGS IN THE EARLY 1980S IBM SAID IT INTENDS TO USE THE PINK PANTHER IN MUCH THE SAME WAY SOFTENING THE PERCEIVED STARKNESS OF TECHNOLOGY THE COMPANY'S EUROPEAN ARM WILL PAY AN UNDISCLOSED PERCENTAGE OF ITS AD SPENDING TO THE CHARACTER'S COPYRIGHT HOLDER METROGOLDWYNMAYER INC THE PANTHER INITIALLY WILL BE USED IN IBM'S FRENCH AND GERMAN PRINT ADS BUT A SPOKESWOMAN SAID TV ADS ARE PLANNED IN MANY EUROPEAN COUNTRIES IBM HAS NO PLANS TO USE THE PINK PANTHER FOR ADS IN THE US WHERE THE CHARACTER ALREADY IS LICENSED TO ANOTHER COMPANY 9302120128 930212 YOUR MONEY MATTERS WEEKEND REPORT TBILL TRAUMA AND THE MEANING OF RISK BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL TREASURY BILLS PLUNGED 37 LAST YEAR IT WASN'T YOUR USUAL MARKET DEBACLE THE VALUE OF TBILLS DIDN'T ACTUALLY DROP DURING 1992 BUT A LOT OF INCOMEHUNGRY INVESTORS STILL SUFFERED MIGHTILY HOW COME WHILE THE PRICE OF TBILLS REMAINED UNCHANGED THE EFFECTIVE YIELD NOSEDIVED 37 HANDING MANY RETIREES AN UNWELCOME LESSON IN THE HAZARDS OF RELYING ON THE INCOME FROM TREASURY BILLS AND TREASURY MONEY MARKET FUNDS THAT WAS THE GREAT TBILL CRASH OF 1992 SAYS LAURENCE SIEGEL A MANAGING DIRECTOR AT CHICAGO'S IBBOTSON ASSOCIATES THAT IMPACTED THE INCOME OF A LOT OF PEOPLE LIKE MY PARENTS WHICH IS WHY I KEEP TELLING THEM TO BUY BOND FUNDS AND STOCK FUNDS BUT THEY WON'T DO IT BECAUSE THE VALUE OF THE PRINCIPAL FLUCTUATES INVESTORS USUALLY THINK OF STOCKS AS VERY RISKY AND BONDS AS MODERATELY RISKY MEANWHILE TBILLS CERTIFICATES OF DEPOSIT MONEY MARKET FUNDS AND OTHER SHORTTERM DEBT INSTRUMENTS ARE SEEN AS VIRTUALLY RISKFREE THAT'S CERTAINLY THE CASE IF ALL YOU CARE ABOUT IS FLUCTUATIONS IN PRICE BUT IF YOUR CONCERN IS GETTING A STEADY STREAM OF INCOME THEN TBILLS AND THEIR ILK ARE MUCH MORE RISKY THAN STOCKS OR BONDS INDEED MR SIEGEL ARGUES THAT THE INCOME FROM STOCKS IS AMAZINGLY RELIABLE FOR PROOF LOOK AT THE ANNUAL CHANGE IN THE INCOME FROM TREASURY BILLS SINCE 1926 THE PAYOUT HAS RISEN IN 39 YEARS AND FALLEN IN 27 YEARS ACCORDING TO IBBOTSON ASSOCIATES THE WORST DROP WAS A 766 PLUNGE IN 1940 OVER THE SAME 66YEAR PERIOD THE ANNUAL PAYOUT ON TREASURY BONDS HAS FALLEN SLIGHTLY MORE OFTEN THAN THE PAYOUT ON TBILLS BUT TREASURY BOND INVESTORS HAVEN'T HAD TO SUFFER THE GUTWRENCHING DROPS IN INCOME THAT HAVE PLAGUED TBILL HOLDERS THE WORST INCOME DECLINE FOR FIVEYEAR TREASURY NOTE HOLDERS WAS A 369 DROP IN 1954 FOR HOLDERS OF 20YEAR TREASURYS THE BIGGEST DECLINE WAS A 95 DROP IN 1941 THESE FIGURES PRESUME THAT EVERY YEAR AN INVESTOR BOUGHT THE FIVEYEAR TREASURY NOTE OR 20YEAR TREASURY BOND HELD IT FOR A YEAR AND THEN SOLD IT INVESTING THE PROCEEDS FROM THE SALE IN A NEW FIVEYEAR OR 20YEAR TREASURY ISSUE WHEN IT COMES TO GENERATING A STEADY STREAM OF DEPENDABLE INCOME HOWEVER THE TRUE CHAMPIONS ARE STOCKS OVER THE PAST 66 YEARS THE VALUE OF THE DIVIDENDS KICKED OFF BY THE COMPANIES IN THE STANDARD & POOR'S 500STOCK INDEX HAS RISEN IN 56 YEARS AND DECLINED IN JUST 10 YEARS THE BIGGEST DROP WAS A 39 PLUNGE IN 1932 WHEN COMPANIES SLASHED THEIR DIVIDENDS DURING THE GREAT DEPRESSION MORE RECENTLY STOCK DIVIDENDS HAVE BEEN REMARKABLY RELIABLE SINCE 1960 THE WORST ANNUAL DECLINE IN STOCK DIVIDENDS WAS A 72 DROP IN 1986 NOT ONLY HAVE STOCK DIVIDENDS BEEN RELATIVELY STABLE FROM YEAR TO YEAR THEY ALSO HAVE INCREASED MORE QUICKLY THAN INFLATION SINCE 1926 THE ANNUAL INCOME KICKED OFF BY THE S&P 500 STOCKS HAS SOARED OVER 1700 EASILY OUTPACING THE 700 INFLATION RATE WHAT ABOUT THE INCOME FROM BONDS AND TBILLS AMONG GOVERNMENT SECURITIES FIVEYEAR TREASURY NOTES HAVE BEEN STANDOUT PERFORMERS EVEN SO THE INCOME FROM FIVEYEAR TREASURYS HAS BARELY DOUBLED OVER THE PAST 66 YEARS FAR LESS THAN THE INFLATION RATE THE LESSON TO LEARN IS THAT YOU SHOULDN'T BE TOO FEARFUL OF EQUITIES SAYS STEVEN SOMES A VICE PRESIDENT AT STATE STREET RESEARCH & MANAGEMENT CO IN BOSTON YOU SHOULDN'T BECOME OVERDEPENDENT ON ONE CLASS OF ASSETS LIKE EQUITIES OR FIXED INCOME OR CASH OR REAL ESTATE IT'S PRUDENT TO DIVERSIFY AT FIRST BLUSH STOCKS MAY SEEM UNAPPEALING TO TODAY'S INCOMEHUNGRY INVESTORS BECAUSE THE AVERAGE DIVIDEND YIELD IS CURRENTLY LESS THAN 3 COMPARED WITH MORE THAN 7 FOR 30YEAR TREASURY BONDS NO PROBLEM SAYS MR SOMES BECAUSE THE VALUE OF A STOCK PORTFOLIO SHOULD RISE FASTER THAN INFLATION I WOULDN'T BE AVERSE TO CONSUMING PRINCIPAL HE SAYS THAT ALLOWS YOU TO BREAK THE LINK BETWEEN THE YIELD ON YOUR SECURITIES AND YOUR SPENDING I WOULDN'T BE SO INCLINED TO CONSUME MY PRINCIPAL IF I WAS INVESTED IN CASH OR BONDS BECAUSE STOCK DIVIDENDS AND STOCK PRICES RISE OVER TIME RETIREES SHOULD KEEP BETWEEN 40 AND 60 OF THEIR PORTFOLIO IN STOCKS SAYS WILLIAM DROMS A FINANCE PROFESSOR AT GEORGETOWN UNIVERSITY THESE DAYS HE THINKS RETIREES SHOULD KEEP THEIR STOCK ALLOCATION CLOSER TO 40 RIGHT NOW I'M VERY CAUTIOUS BECAUSE I THINK THAT THE STOCK MARKET IS JUST TOO HIGH ON ANY SORT OF HISTORICAL BENCHMARK SAYS MR DROMS HE SAYS RETIREES SHOULD CONSIDER PUTTING 20 OF THEIR STOCK MARKET MONEY IN A GLOBAL FUND LIKE SOGEN INTERNATIONAL FUND OR SCUDDER GLOBAL FUND AND ANOTHER 40 IN AN INDEX FUND SUCH AS SCHWAB 1000 FUND OR VANGUARD INDEX TRUST500 PORTFOLIO AN INDEX FUND BUYS THE STOCKS THAT MAKE UP A PARTICULAR STOCK MARKET INDEX AND THEREBY SEEKS TO TRACK THE INDEX'S PERFORMANCE MR DROMS SUGGESTS SPLITTING THE FINAL 40 BETWEEN JANUS FUND AND VANGUARD WINDSOR II JANUS IS A GROWTHSTOCK FUND WHILE WINDSOR II SPECIALIZES IN VALUE STOCKS THAT ARE UNDERVALUED COMPARED WITH CORPORATE ASSETS OR CURRENT EARNINGS FOR THE BOND PORTION OF A RETIREE'S PORTFOLIO MR DROMS FAVORS FUNDS SUCH AS VANGUARD MUNICIPAL BOND FUND LIMITEDTERM PORTFOLIO VANGUARD GNMA PORTFOLIO AND VANGUARD SHORTTERM CORPORATE PORTFOLIO I'M BIASED IN FAVOR OF THE VANGUARD FUNDS BECAUSE THEY HAVE THE LOWEST EXPENSE RATIOS HE SAYS EXPENSES ARE A MAJOR DETERMINANT OF BOND FUND PERFORMANCE STATE STREET RESEARCH'S MR SOMES ADVISES INEXPERIENCED INVESTORS TO MOVE SLOWLY IN BUILDING UP THEIR STOCK MARKET EXPOSURE IF YOU FIND YOURSELF IN A POSITION WHERE YOU'RE UNDERINVESTED IN EQUITIES AND YOU WANT TO BE TWICE AS INVESTED IN EQUITIES YOU SHOULD MOVE TOWARD THAT POSITION OVER THE NEXT THREE TO FIVE YEARS HE SAYS OVER THE PAST 66 YEARS STOCKS HAVE BEEN A MORE RELIABLE SOURCE OF INCOME THAN EITHER BONDS OR TREASURY BILLS THE FIGURES BELOW PRESUME THAT EACH YEAR AN INVESTOR SPENT ALL DIVIDEND AND INTEREST INCOME KICKED OFF BY SECURITIES BUT LEFT THE CAPITAL INTACT 9302120126 930212 INVESTORS IN QUEBEC STUDY ALTERNATIVES TO BUYOUT OF UNIVA BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL TWO MAJOR QUEBEC INSTITUTIONAL INVESTORS HINTED THEY MAY EXPLORE ALTERNATIVES TO A PROPOSED 13 BILLION BUYOUT OF UNIVA INC AMID CALLS FOR ASSURANCES THAT CONTROL OF THE SUPERMARKET CHAIN WILL REMAIN IN THE FRENCHSPEAKING PROVINCE THE CAISSE DE DEPOT ET PLACEMENT DU QUEBEC ONE OF UNIVA'S MAJOR SHAREHOLDERS IS STUDYING EVERY POSSIBILITY CONCERNING THE BUYOUT PROPOSAL BY BLACKSTONE CAPITAL PARTNERS LP AND UNIGESCO INC SAID A SPOKESWOMAN FOR THE CAISSE MEANWHILE GUY SAVARD THE CAISSE'S PRESIDENT TOLD REPORTERS THAT HIS INSTITUTION IS DISCUSSING THE UNIVA SITUATION WITH THE FONDS DE SOLIDARITE DES TRAVAILLEURS DU QUEBEC A LABORAFFILIATED INVESTMENT FUND AND CLAUDE BLANCHET PRESIDENT OF FONDS DE SOLIDARITE INDICATED THAT QUEBEC INSTITUTIONS SHOULD TRY TO KEEP UNIVA'S DISTRIBUTION SYSTEM UNDER THE CONTROL OF LOCAL INTERESTS LEST QUEBEC FOOD SUPPLIERS LOSE BUSINESS AND RELATED JOBS BLACKSTONE AND UNIGESCO THIS WEEK OFFERED TO BUY UNIVA FOR 11 CANADIAN DOLLARS US870 A SHARE OR SLIGHTLY MORE THAN C1 BILLION US791 MILLION PLUS ASSUMPTION OF ABOUT C535 MILLION IN DEBT AND PREFERRED SHARES BLACKSTONE A NEW YORKBASED INVESTMENT FUND WOULD INITIALLY HOLD AN 80 STAKE BUT WOULD SEEK TO SELL ITS SHARES TO THE PUBLIC IN THE NEXT THREE TO SEVEN YEARS THAT WOULD ENABLE UNIGESCO A HOLDING COMPANY BASED HERE TO REGAIN ITS CURRENT STATUS AS UNIVA'S PRINCIPAL SHAREHOLDER BUT SOME HERE FEAR BLACKSTONE MIGHT WIND UP SELLING ALL OR PART OF ITS UNIVA HOLDINGS TO SUPERMARKET OPERATORS OUTSIDE QUEBEC DESPITE UNIGESCO'S RIGHT OF FIRST REFUSAL ON ANY SUCH SALES CAISSE DE DEPOT WHICH MANAGES PUBLIC PENSION FUNDS IN QUEBEC HAS A STAKE OF 135 IN UNIVA AND HAS BEEN CLOSELY INVOLVED WITH THE COMPANY FORMERLY CALLED PROVIGO INC FOR MANY YEARS BERTIN NADEAU CHAIRMAN OF UNIVA AND OF UNIGESCO BOUGHT MUCH OF UNIGESCO'S 26 STAKE IN UNIVA FROM THE CAISSE FURTHER THICKENING THE PLOT THE CAISSE HOLDS A RIGHT OF FIRST REFUSAL ON UNIGESCO'S HOLDINGS THOUGH EXERCISING THAT RIGHT MIGHT REQUIRE CAISSE TO MAKE A GENERAL OFFER TO ALL UNIVA SHAREHOLDERS THE CAISSE HAS A DUAL MANDATE OF SEEKING OPTIMUM FINANCIAL RETURNS AND CONTRIBUTING TO THE QUEBEC ECONOMY PARTI QUEBECOIS LEADER JACQUES PARIZEAU APPEALED ON WEDNESDAY TO THE CAISSE TO OPPOSE THE BLACKSTONELED TRANSACTION UNLESS IT CAN OBTAIN FIRMER GUARANTEES THAT CONTROL OF UNIVA EVENTUALLY WILL BE RESTORED TO QUEBEC INTERESTS THE CAISSE SPOKESWOMAN YESTERDAY SAID THE INSTITUTION WOULD STUDY ALL ASPECTS OF THE BUYOUT OFFER BEFORE RESPONDING FOR THE 40 WEEKS ENDED OCT 31 UNIVA EARNED C335 MILLION OR 34 CENTS A SHARE ON SALES OF C51 BILLION IN TRADING ON THE MONTREAL EXCHANGE YESTERDAY UNIVA'S SHARES CLOSED AT C10 UNCHANGED 9302120125 930212 WHO'S NEWS MCDERMOTT INTERNATIONAL INC MCDERMOTT INTERNATIONAL INC NEW ORLEANS JOHN ECKERT WAS NAMED VICE CHAIRMAN OF THIS ENERGY SERVICES COMPANY MR ECKERT RELINQUISHED HIS CURRENT TITLES OF PRESIDENT AND CHIEF OPERATING OFFICER AND PLANS TO RETIRE OCT 1 A COUPLE OF DAYS AFTER HE TURNS 60 YEARS OLD MCDERMOTT SAID IT WILL LEAVE HIS TWO POSITIONS VACANT AND INSTEAD NAMED TWO MEN TO HEAD ITS TWO MAIN OPERATING SUBSIDIARIES JOE STEWART 56 NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF BABCOCK & WILCOX CO HAD BEEN AN EXECUTIVE VICE PRESIDENT AT THE SUBSIDIARY JAMES WILDASIN 59 NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF MCDERMOTT MARINE CONSTRUCTION HAD BEEN A SENIOR VICE PRESIDENT OF THE UNIT IN ADDITION MCDERMOTT NAMED WILLIAM HIGGINS 50 EXECUTIVE VICE PRESIDENT ENGINEERING AND INDUSTRIAL GROUP HE HAD BEEN AN EXECUTIVE VICE PRESIDENT OF THE MARINE SUBSIDIARY E ALLEN WOMACK 50 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF TECHNICAL OFFICER OF THE CORPORATION HE HAD BEEN SENIOR VICE PRESIDENT RESEARCH AND DEVELOPMENT 9302120123 930212 LETTERS TO THE EDITOR ANNUAL RISE OF M2 LINKED TO INFLATION QUOTH THE WALL STREET JOURNAL ON JAN 18 A WEAK LABOR MARKET INCREASED PRODUCTIVITY AND A GLOBAL ECONOMIC SLOWDOWN HELPED PUSH INFLATION TO ITS LOWEST LEVEL IN SIX YEARS IN 1992 IN 1992 UNEMPLOYMENT WAS 74 AND INFLATION 31 IN 1981 UNEMPLOYMENT WAS 76 AND INFLATION 103 IN 1975 UNEMPLOYMENT WAS 85 AND INFLATION 91 PRAY TELL WHY WERE EVEN WEAKER MARKETS IN 1975 AND 1981 ASSOCIATED WITH SUCH DRAMATICALLY HIGHER RATES OF INFLATION NOT A WORD IN THE ARTICLE TO EXPLAIN THOUGH ONE WORD WOULD SUFFICE MONEY M2 ROSE AT ANNUAL RATES OF 25 91 AND 89 IN THE YEARS ENDING WITH THE FOURTH QUARTER OF 1992 1981 AND 1975 RESPECTIVELY WHICH EXPLAINS WHY THE CORRESPONDING INFLATION RATES WERE 31 103 AND 91 BUT NO READER OF THE JOURNAL COULD LEARN THAT FROM ITS NEWS COLUMNS 9302120122 930212 WHO'S NEWS CYPRUS MINERALS CO CYPRUS MINERALS CO DENVER ROCKWELL A SCHNABEL WAS NAMED A DIRECTOR RAISING THE MINING COMPANY'S BOARD TO 12 MR SCHNABEL 56 YEARS OLD IS A FORMER DEPUTY COMMERCE SECRETARY 9302120121 930212 GM TO IDLE PLANT IN MISSOURI MOVE WILL AFFECT 4300 BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID IT WILL IDLE ITS BIG WENTZVILLE MO CAR PLANT FOR MORE THAN A YEAR AS IT CONSOLIDATES PRODUCTION OF THREE LARGE SEDAN MODELS THE SHUTDOWN EVENTUALLY WILL IDLE MOST OF THE WENTZVILLE PLANT'S 4300 WORKERS PENDING A DECISION ABOUT A NEW GENERATION OF FULLSIZE VANS THAT MIGHT BE ASSIGNED TO THE FACTORY GM SAID WENTZVILLE THUS JOINS A TRUCK FACILITY IN FLINT MICH AND A MIDSIZE CAR FACTORY IN OKLAHOMA CITY AS THOSE GM PLANTS WITHOUT FIRM PRODUCT ASSIGNMENTS AFTER 1996 BEGINNING NEXT WEEK THE WENTZVILLE PLANT WILL LOSE PRODUCTION OF OLDSMOBILE 88 SEDANS PRODUCTION OF THE SEDANS WILL BE MOVED TO PLANTS IN ORION TOWNSHIP MICH AND FLINT ABOUT 500 OF WENTZVILLE'S 4300 WORKERS WILL BE LAID OFF AS A RESULT SEPARATELY THE ORION TOWNSHIP PLANT WILL BE IDLED FOR THE WEEK LATER THIS YEAR WENTZVILLE WILL LOSE PRODUCTION OF TWO MORE LARGE SEDAN MODELS WHEN THE ORION PLANT BEGINS PRODUCING THE PONTIAC BONNEVILLE AND THE FLINTBUICK CITY PLANT BEGINS MAKING THE BUICK PARK AVENUE THE WENTZVILLE FACTORY COULD REMAIN IDLE THROUGH THE SUMMER OF 1995 DEPENDING ON THE STATUS OF THE NEW VAN A GM SPOKESWOMAN SAID THE AUTO MAKER HASN'T YET DECIDED WHEN OR WHERE IT WILL START PRODUCTION OF ITS NEXT GENERATION OF FULLSIZE VANS THE WENTZVILLE PLANT IS THE MOSTLY LIKELY CANDIDATE TO BUILD THE NEW VEHICLES BUT NO TIME FRAME HAS BEEN GIVEN FOR A FINAL DECISION THE SPOKESWOMAN SAID GM HAS SAID THE NEW VANS WON'T BE PRODUCED AT THE COMPANY'S TRUCK PLANT IN FLINT WHERE ITS CURRENT VAN LINE IS BEING PRODUCED THROUGH THE 1995 MODEL YEAR BUT THE FLINT PLANT COULD BE IN THE RUNNING FOR ANOTHER NEW PRODUCT SAID A COMPANY SPOKESWOMAN 9302120120 930212 NORTHEAST UTILITIES WORKER IN SAFETY CASE AGREE TO A SETTLEMENT HARTFORD CONN PAUL BLANCH A NORTHEAST UTILITIES EMPLOYEE WHO RAISED QUESTIONS ABOUT THE SAFETY OF CERTAIN NUCLEAR POWER PLANT INSTRUMENTS IN 1988 RESIGNED AFTER REACHING A SETTLEMENT WITH THE COMPANY MR BLANCH WAS INSTRUMENTAL IN PROMPTING THE NUCLEAR REGULATORY COMMISSION TO INVESTIGATE NUCLEAR POWER PLANTS NATIONWIDE THAT ALLEGEDLY WERE USING FAULTY MONITORING INSTRUMENTS INCLUDING ONE OWNED BY NORTHEAST UTILITIES THE NRC CONCLUDED THE INSTRUMENTS DIDN'T POSE SIGNIFICANT SAFETY PROBLEMS NONETHELESS MR BLANCH A FORMER SUPERVISOR OF INSTRUMENTATION AND CONTROL ENGINEERING ALLEGED THAT NORTHEAST UTILITIES HARASSED HIM AFTER HE APPROACHED THE REGULATORY AGENCY WHILE NORTHEAST UTILITIES A UTILITY HOLDING COMPANY DENIES THE HARASSMENT CHARGES MR BLANCH LATER FILED A COMPLAINT WITH THE LABOR DEPARTMENT THE CHARGES WERE DROPPED AS A RESULT OF THE SETTLEMENT A NORTHEAST UTILITIES SPOKESMAN WHO DECLINED TO DISCLOSE TERMS OF THE SETTLEMENT SAID IT WAS MUTUALLY AGREEABLE 9302120119 930212 VF TO MAKE JEANS IN POLAND WYOMISSING PA APPAREL MAKER VF CORP SAID IT WILL OPEN A FACTORY IN POLAND TO MAKE JEANS FOR THE LOCAL MARKET AND NEIGHBORING CENTRAL EUROPEAN COUNTRIES THE 100000SQUAREFOOT PLANT TO BE LOCATED IN LODZ 60 MILES SOUTHWEST OF WARSAW IS EXPECTED TO BE COMPLETED BY FALL AND EMPLOY AS MANY AS 200 PEOPLE BY YEAREND VF SAID THE PLANT WILL MAKE ITS LEE WRANGLER AND MAVERICK BRANDS OF JEANS 9302120118 930212 FINANCING BUSINESS CENTERIOR ENERGY CORP CENTERIOR ENERGY CORP'S CLEVELAND ELECTRIC ILLUMINATING CO UNIT SAID IT SOLD 150 MILLION OF FIRST MORTGAGE BONDS WITH A 9 INTEREST RATE THE UNIT SAID THE BONDS WERE OFFERED AT 9926 TO YIELD 907 OVER 30 YEARS PROCEEDS WILL BE USED TO REFUND DEBT AND FOR GENERAL PURPOSES 9302120117 930212 EG&G INC POSTS RISE OF 95 IN EARNINGS FOR FOURTH QUARTER WELLESLEY MASS EG&G INC REPORTED A 95 INCREASE IN FOURTHQUARTER EARNINGS EG&G SAID NET INCOME ROSE TO 259 MILLION OR 46 CENTS A SHARE FROM 237 MILLION OR 42 CENTS A SHARE A YEAR EARLIER SALES INCREASED 76 TO 6892 MILLION FROM 6401 MILLION THE INSTRUMENT MAKER AND TECHNICAL AND ENERGY SERVICES CONTRACTOR NOTED THAT IT HAD A 63 MILLION PRETAX CHARGE IN THE LATEST QUARTER RELATED TO ITS WITHDRAWAL FROM TWO COMPONENTS BUSINESSES HOWEVER RESULTS WERE AIDED BY A DECLINE IN ITS PROVISION FOR INCOME TAXES TO 55 MILLION FROM 114 MILLION A YEAR EARLIER SEPARATELY EG&G CONFIRMED THAT THE DEPARTMENT OF ENERGY EXTENDED A SUPPORT CONTRACT RELATED TO NUCLEAR WEAPONS RESEARCH AND DEVELOPMENT AT VARIOUS SITES A SPOKESWOMAN VALUED THE CONTRACT AT 450 MILLION OVER THE THREEYEAR EXTENSION WHICH ON AN ANNUAL BASIS IS DOWN SLIGHTLY FROM THE LAST CONTRACT THE ENERGY DEPARTMENT ALSO EXTENDED FOR 27 MONTHS ANOTHER MANAGEMENT AND OPERATING CONTRACT WITH EG&G PRIMARILY AT THE GOVERNMENT'S NUCLEAR TEST SITE IN NEVADA THE DEPARTMENT ESTIMATED THE VALUE OF THE CONTRACT AT 675 MILLION WHICH EG&G SAID IS DOWN SLIGHTLY FROM THE PREVIOUS PACT EG&G'S WORK FORCE AT THE SITE HAS BEEN REDUCED BY 250 IN ADDITION THE ENERGY DEPARTMENT HAS EXTENDED THE EG&G ROCKY FLATS INC CONTRACT TO MANAGE AND OPERATE THE ROCKY FLATS PLANT FOR TWO ADDITIONAL YEARS UNTIL DECEMBER 1995 THE COMPANY DECLINED TO DISCLOSE THE VALUE OF THE EXTENSION 9302120116 930212 INTERNATIONAL BRITISH TELECOM POSTS PRETAX PROFIT DECLINE OF 71 FOR 3RD PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH TELECOMMUNICATIONS PLC REPORTED THAT PRETAX PROFIT FELL 71 TO 705 MILLION 101 BILLION IN ITS FISCAL THIRD QUARTER ENDED DEC 31 AS THE RECESSION CONTINUED TO DEPRESS CALL VOLUMES CHAIRMAN IAIN VALLANCE SAID THERE HAS BEEN SOME RECENT RECOVERY IN CALLING VOLUMES BUT CAUTIONED THAT THE ECONOMIC OUTLOOK REMAINS DIFFICULT WHILE COMPETITION AND REGULATION CONTINUE TO EXERT PRESSURE ON OUR PERFORMANCE BT HOLDS 93 OF THE UK MARKET BUT FACES COMPETITION FROM MERCURY COMMUNICATIONS LTD A UNIT OF BRITAIN'S CABLE & WIRELESS PLC ALSO ON TUESDAY THE UK GOVERNMENT ISSUED A FIXEDWIRE LICENSE TO IONICA L3 LTD STARTING JULY 31 BT WILL FACE A NEW TIGHTER GOVERNMENTIMPOSED PRICE CAP THE TELECOMMUNICATIONS COMPANY'S RESULTS WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS BT'S REVENUE SLIPPED 03 IN THE THIRD QUARTER TO 328 BILLION BT SAID THE DECLINE WAS CAUSED BY THE SALE OF BUSINESSES REVENUE FROM CONTINUING ACTIVITIES WAS UP 16 IN THE THIRD QUARTER AND 04 IN THE NINE MONTHS IN THE FIRST NINE MONTHS OPERATING COSTS FELL 08 MOSTLY FROM LOWER STAFF COSTS AS OF DEC 31 172200 PEOPLE WERE EMPLOYED BY BT THE REDUCTION IN STAFF BY 38300 FROM MARCH 1992 INCLUDED 5200 IN BUSINESSES THAT WERE SOLD 9302120115 930212 MONEYFUND ASSETS GREW BY 631 BILLION IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 631 BILLION TO 59707 BILLION FROM 59076 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 614 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 2688 MILLION TO 38337 BILLION THE TRADE GROUP SAID ASSETS OF 380 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 3878 MILLION TO 30230 BILLION ASSETS OF 234 RETAIL TAXEXEMPT FUNDS FELL BY 6566 MILLION TO 8108 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 657 BILLION TO 21369 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 223 TAXABLE MONEY MARKET FUNDS ROSE BY 643 BILLION TO 19106 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 1473 MILLION TO 2263 BILLION 9302120114 930212 BLOCKBUSTER BUYS STAKE IN FIRM FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP COMPLETED ITS 25 MILLION PURCHASE OF A MINORITY STAKE IN REPUBLIC PICTURES CORP A FILM DISTRIBUTOR AND PRODUCER THE VIDEO RETAILER'S CHAIRMAN AND CHIEF EXECUTIVE H WAYNE HUIZENGA AND VICE CHAIRMAN STEVEN R BERRARD WERE NAMED TO REPUBLIC'S BOARD EXPANDING ITS MEMBERSHIP TO EIGHT BLOCKBUSTER HOLDS A 35 STAKE IN REPUBLIC AND HAS WARRANTS TO BUY AN ADDITIONAL 810000 SHARES 9302120113 930212 EMISSION RULES IN NEW JERSEY TO BE TIGHTENED LEGISLATURE PASSES MEASURE THAT FLORIO'S AIDES SAY GOVERNOR PLANS TO SIGN BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW JERSEY MOVED CLOSER TO ADOPTING TOUGHER AUTO EMISSIONS STANDARDS AS BOTH THE STATE SENATE AND ASSEMBLY APPROVED A MEASURE THAT WOULD REQUIRE LOCAL CAR DEALERS TO SELL ONLY LOWEMISSION VEHICLES BY 1998 GOV JIM FLORIO'S STAFF SAID THE GOVERNOR INTENDS TO SIGN THE BILL WHICH PASSED WITH LITTLE OPPOSITION WITHIN THE NEXT 45 DAYS HOWEVER THE MEASURE INCLUDES FEATURES TYING THE PLAN TO SIMILAR MOVES BY NEARBY STATES TO AVOID PUTTING NEW JERSEY BUYERS AT A COST DISADVANTAGE AND THERE ARE HINTS OF A LEGAL CHALLENGE I DON'T WANT US TO GET OUT AHEAD OF OTHER STATES ON THIS LAW BECAUSE WE WOULD PUT OURSELVES AT A COMPETITIVE DISADVANTAGE SAID SEN HENRY P MCNAMARA OF BERGEN NJ A SPONSOR OF THE BILL AND THESE NEIGHBORING STATES ALSO PLAY A ROLE IN OUR AIR QUALITY SO IT DOESN'T MAKE SENSE TO MOVE FORWARD WITHOUT THEM THE NEW JERSEY BILL DOES NOT ALLOW THE STATE TO ADOPT THE LOWEMISSION VEHICLE REQUIREMENTS UNLESS AT LEAST 40 OF THE NORTHEAST AUTOMOBILE MARKET OUTSIDE THE STATE ADOPTS SIMILAR REGULATIONS SO FAR THE FIGURE WOULD BE IN THE MID30 RANGE IT IS ESTIMATED MAINE NEW YORK AND MASSACHUSETTS HAVE ADOPTED LOWEMISSION VEHICLE STANDARDS ALTHOUGH NEW YORK'S REGULATION WAS OVERTURNED ON AN AUTO MAKER CHALLENGE AND THE STATE IS SEEKING A REHEARING REQUIRING LOWEMISSION VEHICLES COULD ADD AS MUCH AS 1300 TO THE PRICE OF NEW VEHICLES ACCORDING TO THE AUTOMOTIVE CONSULTING GROUP THE NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY HOWEVER PLACES ADDITIONAL COSTS AT CLOSER TO 200 PER NEW VEHICLE UNDER TERMS OF THE BILL NEW JERSEY COULD REQUIRE SOCALLED CALIFORNIA CARS BEFORE 1998 IF NEIGHBORING MARYLAND DELAWARE PENNSYLVANIA AND NEW YORK ADOPT SIMILAR REGULATIONS CALIFORNIA CARS MEET THE STATE'S STRICT CALIFORNIA ENVIRONMENTAL REGULATIONS THE BILL ALSO STIPULATES THAT REGULATORS CAN'T IMPLEMENT ANY LOWEMISSION REQUIREMENTS BEFORE THE RELEASE OF A NEW JERSEY INSTITUTE OF TECHNOLOGY STUDY CONCERNING THE ECONOMIC IMPACT OF LOWEMISSION VEHICLES THAT STUDY IS TO BE RELEASED IN NINE MONTHS A SIGNIFICANT PROVISION OF THE AUTOEMISSIONS BILL PROVIDES THAT LOWEMISSION VEHICLES USE STANDARD FUEL AS OPPOSED TO CLEANERBURNING CALIFORNIA FUEL WHICH COSTS ABOUT 15 TO 20 CENTS MORE PER GALLON TO PRODUCE A SIMILAR SEPARATION OF LOWEMISSION VEHICLE AND CLEANERBURNING FUEL REGULATIONS CAUSED A NEW YORK COURT TO OVERTURN THAT STATE'S LOWEMISSION VEHICLE PLAN AT LEAST ONE AUTO MAKER SAID USING STANDARD FUEL IN A LOWEMISSION VEHICLE COULD IN EFFECT REQUIRE THE COMPANY TO MAKE A THIRD CAR WE MAKE A FEDERAL CAR' AND A CALIFORNIA CAR' A FORD MOTOR CO SPOKESMAN SAID THE IDEA OF USING STANDARD FUEL IN A LOWEMISSION CALIFORNIA CAR' IS UNWORKABLE FORD SAID IT WOULD TAKE NO ACTION UNTIL THE NEW JERSEY INSTITUTE OF TECHNOLOGY STUDY HAS BEEN COMPLETED BUT IF THE DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY FOLLOWS THE BILL WITH REGULATIONS WE'D GIVE SERIOUS CONSIDERATION TO DOING WHAT WAS DONE IN NEW YORK THE FORD SPOKESMAN SAID HOWEVER BILL SESSA OF THE CALIFORNIA AIR RESOURCES BOARD THE STATE AGENCY THAT ADMINISTERS THE CALIFORNIA AUTOMOBILE REGULATIONS THINKS A THIRD CAR WOULD NOT BE NECESSARY IF STATES OPT TO FOREGO THE STRICT CALIFORNIA FUEL REQUIREMENTS THESE ARE TWO SEPARATE STANDARDS AND WE BELIEVE THAT THE GASOLINE STANDARDS ARE NOT AN ESSENTIAL INGREDIENT TO MEETING TAILPIPE STANDARDS MR SESSA SAID BUT AUTO MAKERS SEEM TO BE TELLING EASTERN LEGISLATORS SOMETHING DIFFERENT 9302120112 930212 REVIEW & OUTLOOK EDITORIAL CLINTON'S WORLD DISORDER SO THE CLINTON ADMINISTRATION IS JUMPING INTO THE BALKAN FRAY POSSIBLY EVEN COMMITTING AMERICAN GROUND TROOPS DOWN THE ROAD TO ENFORCE A PEACE ACCORD WE HOPE THIS DECISION IS TIED TO SOME BROADER STRATEGIC DESIGN AS OPPOSED TO THE AIMLESS GRADUALISM THAT GOT US TRAPPED INTO VIETNAM WE SAY THIS NOT WANTING TO BE TOO CRITICAL OF A NEW ADMINISTRATION THAT HAS BEEN DEALT A TERRIBLE HAND IN THE FORMER YUGOSLAVIA THE TRULY AWFUL DECISIONS WERE MADE A YEAR OR TWO AGO BY THE EUROPEANS AND THE BUSH ADMINISTRATION WHICH WILL HAVE TO ANSWER TO HISTORY FOR THE RESULTING MAYHEM IT'S HARD TO DISAGREE WHEN SECRETARY OF STATE CHRISTOPHER NOTES THAT THE WEST HAS MISSED REPEATED OPPORTUNITIES TO ENGAGE IN EARLY AND EFFECTIVE WAYS THAT MIGHT HAVE PREVENTED THE CONFLICT FROM DEEPENING HAD THE BOSNIANS BEEN ARMED A YEAR AGO THEY MIGHT HAVE DETERRED THE SERBS MR CHRISTOPHER ALSO MADE SENSE ON WEDNESDAY IN FRAMING THE MATTER AS AN EARLY AND CRUCIAL TEST OF HOW THE WORLD WILL ADDRESS THE CONCERNS OF ETHNIC AND RELIGIOUS MINORITIES IN THE POSTCOLD WAR PERIOD AND HE MENTIONED THE POSSIBILITY THAT THE FIGHTING MIGHT YET ERUPT INTO A BROADER BALKAN WAR DRAWING IN TURKEY GREECE AND ALMOST CERTAINLY LARGER POWERS AMERICANS WHO CLAIM THE US CAN WASH ITS HANDS OF THE MATTER BECAUSE IT HAS NO STRATEGIC INTEREST IN THE AREA HAVE TO RESPOND TO THOSE ARGUMENTS YET AT THIS STAGE THE US HAS FEW CARDS TO PLAY LIFTING THE ARMS EMBARGO ON BOSNIA TO ALLOW A FAIR FIGHT AGAINST THE SERBS SEEMS TO HAVE BEEN ABANDONED BECAUSE OF EUROPEAN AND ESPECIALLY RUSSIAN OBJECTIONS ENFORCING THE NOFLY ZONE OVER BOSNIA WON'T BY ITSELF ACCOMPLISH VERY MUCH SO THE US WILL TIGHTEN THE EMBARGO ON SERBIA AND ATTEMPT TO IMPROVE THE VANCEOWEN DIPLOMATIC PLAN TO MAKE IT MORE ACCEPTABLE TO THE BOSNIAN MUSLIMS THE MUSLIMS ENDORSED THE AMERICAN EFFORT YESTERDAY THOUGH THEY HAD LITTLE CHOICE BECAUSE THE US IS NOW THEIR ONLY HOPE WE AGREE WITH FRED IKLE THE FORMER REAGAN ADMINISTRATION OFFICIAL WHO SAYS US EFFORTS SHOULD BEGIN BY TRYING TO CREATE PROTECTIVE ENCLAVES FOR MUSLIMS AND CROATS NOW UNDER SIEGE STARTING WITH SARAJEVO IF THE MARAUDING SERBS ARE AT ALL SERIOUS ABOUT AN AGREEMENT THEY CAN HARDLY OBJECT TO THAT BEGINNING EVEN THE RUSSIANS WHO MAY HAVE ETHNICS OF THEIR OWN TO PROTECT SOMEDAY IN PARTS OF THEIR OLD EMPIRE SHOULD FAVOR THIS IT'S ALSO IMPORTANT THAT THE WEST MARSHAL MORE TOOLS OF INFLUENCE AGAINST SERBIA THAN SIMPLY WORDS IF ARMING THE BOSNIANS IS OUT OF THE QUESTION HOW ABOUT TRAINING AND INTELLIGENCE THERE ARE WAYS TO INFLUENCE THE MOOD AND EXPECTATIONS OF THE SERBIAN PEOPLE SHORT OF AN INVASION ONE WOULD BE FOR THE US TO CREATE RADIO FREE SERBIA SIMILAR TO RADIO LIBERTY AND RADIO FREE EUROPE WHICH ARE UNIVERSALLY HAILED NOW BY SUCH PEOPLE AS VACLAV HAVEL FOR GIVING COMMUNISTHELD POPULATIONS AN ALTERNATIVE TO THE REGIME'S LIES AND PROPAGANDA BELGRADE REMAINS AN OPEN CITY BUT ONE WITH A MEDIA CONTROLLED BY THE WORST SERBIAN NATIONALISTS INDEED THE IDEA OF THE WEST BROADCASTING INTO SERBIA AT LEAST RAISES THE QUESTION OF WHETHER IT IS POSSIBLE TO CONNECT OUR BALKANS' POLICY TO SOME LARGER PURPOSE OR STRATEGY SECRETARY CHRISTOPHER IS CORRECT TO SAY THAT BOLD TYRANTS AND FEARFUL MINORITIES ARE WATCHING WHAT WE DO HERE ONE SUCH BOLD TYRANT NOW ABUSING FEARFUL MINORITIES IS SADDAM HUSSEIN IT WOULD BE FOOLISH TO THINK ANY BOSNIAN INITIATIVE CAN EXIST IN A VACUUM APART FROM THE PROBLEM IN IRAQ YES WE SHOULD HAVE FINISHED THE JOB IN IRAQ WHEN OUR TROOPS WERE THERE BUT NOW A MORE LIMITED BUT IMPORTANT OPTION IS TO INFLUENCE THE INTERNAL POLITICS OF REGIMES SUCH AS IRAQ'S AND SERBIA'S RATHER THAN OLDSTYLE DESTABILIZATIONS THE HIGHTECH TOOLS NOW EXIST TO PURSUE POLICIES THAT COMPORT WITH OUR GOALS AND VALUES ALBERT WOHLSTETTER DESCRIBES THE RATIONALE AND MEANS FOR SUCH A STRATEGY TOWARD IRAQ IN THE FEB 15 ISSUE OF NATIONAL REVIEW AND YES IT WOULD INCLUDE A RADIO FREE IRAQ TO BREAK THROUGH SADDAM'S INTERNAL PROPAGANDA SO FAR THERE IS LITTLE EVIDENCE THAT US OFFICIALS ARE INCLINED EVEN TO TRY TO THINK INNOVATIVELY ABOUT FOREIGN POLICY ONE OF THE INANITIES OF THE UN EMBARGO FOR EXAMPLE IS THAT IT BARS EVEN THE INTRODUCTION OF TRANSMITTERS PRINTING PRESSES OR SATELLITE DISHES THAT COULD DELIVER MORE ACCURATE NEWS ABOUT BOSNIA IF THERE IS NO ATTEMPT TO TIE WESTERN POLICY TO A BROADER LONGTERM CONTAINMENT OF SERBIA OR TO A CHANGE IN ITS POLITICAL LEADERSHIP THEN THE CHRISTOPHER PROMISE TO DEPLOY US GROUND TROOPS BECOMES ESPECIALLY DANGEROUS THAT IS THE ROAD TO ANOTHER BEIRUT OR EVEN TO VIETNAM IF LARGER POWERS BEGIN TO SIDE WITH THE SERBS IT IS NOT OUR INTENTION HERE TO COUNSEL A POLICY OF SIMPLY STAYING OUT INSTEAD IT IS OUR HOPE TO FINALLY SEE US POLICY IN SUCH CIRCUMSTANCES TIED TO A BROADER MORE COHERENT STRATEGY THAT REFLECTS OUR AND THE CIVILIZED WORLD'S FUTURE INTERESTS 9302120111 930212 CANADA ORDERS FINANCIAL DATA ON BRONFMANS REGULATOR ASKS INSTITUTIONS TO OUTLINE INVESTMENTS OF FAMILY IN TORONTO BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL THE CANADIAN GOVERNMENT INDICATED OFFICIALLY FOR THE FIRST TIME ITS CONCERN ABOUT THE FINANCIAL CONDITION OF COMPANIES CONTROLLED BY TORONTO'S BRONFMAN FAMILY IN AN UNUSUAL MOVE CANADA'S CHIEF FINANCIAL REGULATOR ASKED THE NATION'S BANKS TRUST COMPANIES AND INSURANCE FIRMS TO OUTLINE BY TODAY THEIR LOANS AND OTHER INVESTMENTS IN THE GROUP CONTROLLED BY FINANCIERS PETER AND EDWARD BRONFMAN MANY OF THE BRONFMAN COMPANIES' STOCK PRICES HAVE SLUMPED IN RECENT WEEKS MAINLY BECAUSE OF PROBLEMS IN THE GROUP'S COMMERCIAL REAL ESTATE AND FINANCIALSERVICES ACTIVITIES BUT THE REGULATOR ALSO WANTS DETAILS ABOUT THE FINANCIAL INSTITUTIONS' RISK EXPOSURE TO THOSE OPERATING COMPANIES IN THE GROUP THAT SHOW LITTLE OR NO SIGN OF FINANCIAL STRESS SUCH AS JOHN LABATT LTD THE BREWING GIANT AND LONDON INSURANCE GROUP INC A LIFEINSURANCE CONCERN ANALYSTS SAY THE GOVERNMENT FINALLY IS WAKING UP TO THE FACT THAT BECAUSE OF EXTENSIVE CROSS HOLDINGS OF DEBT AND EQUITY PROBLEMS IN ONE CORNER OF THE BRONFMAN EMPIRE PROBABLY WOULD SEND SHOCK WAVES THROUGHOUT THE GROUP WHICH MAKES UP ABOUT 5 OF THE VALUE OF THE TORONTO STOCK EXCHANGE YOU CANNOT LOOK AT EACH COMPANY IN THE GROUP AS A SEPARATE ENTITY THERE IS TREMENDOUS OVERLAP IN FINANCIAL RISK SAID ALAIN TUCHMAIER A FINANCIALSERVICES ANALYST AT MCLEAN MCCARTHY LTD IN TORONTO IT CERTAINLY RAISES CONCERNS IN PEOPLE'S MINDS THAT ALL OF A SUDDEN REGULATORS ARE GETTING CONCERNED ABOUT THIS ROBERT HARDING PRESIDENT OF HEES INTERNATIONAL BANCORP A KEY BRONFMAN HOLDING COMPANY SAID HE IS NOT WORRIED ABOUT THE REGULATOR'S REQUEST AS A REGULATOR IT'S UP TO THEM TO DEAL WITH THE BANKS MR HARDING SAID HE DECLINED TO PUT A FIGURE ON THE TOTAL DEBT OF THE GROUP WHICH COMPRISES DOZENS OF PUBLIC AND CLOSELY HELD COMPANIES ANALYSTS TOO CAN ONLY GUESS AT THE GROUP'S TOTAL DEBT AND THEIR ESTIMATES VARY WIDELY THEY AGREE THAT THE DEBT IS MUCH GREATER THAN THE US28 BILLION OWED TO CANADA'S BANKS BY OLYMPIA & YORK DEVELOPMENTS LTD THE FAILED REALESTATE DEVELOPER THAT WAS REORGANIZED UNDER CANADIAN BANKRUPTCY LAW PROTECTION HOWEVER A LARGE PORTION OF THE BRONFMAN GROUP'S DEBT IS RELATED TO FINANCIALLY SOUND COMPANIES AND ISN'T EXPECTED TO BE AT RISK PETER AND EDWARD BRONFMAN ARE COUSINS OF THE BRONFMAN FAMILY IN MONTREAL WHICH OWNS SEAGRAM CO BUT THE TWO FAMILIES HAVEN'T ANY BUSINESS INTERESTS IN COMMON OBSERVERS SAID THE REGULATOR'S ACTION SHOWS THE GOVERNMENT WANTS TO STAY AHEAD OF ANY PROBLEMS THAT MIGHT EMERGE FROM THE BRONFMAN GROUP CANADA'S REGULATORS WERE WIDELY ACCUSED OF BEING SLOW OFF THE MARK IN MONITORING LENDING TO O&Y WHICH RAN INTO A LIQUIDITY CRISIS ABOUT THIS TIME LAST YEAR FOLLOWING ON THE HEELS OF O&Y WHICH SHOOK UP THE INDUSTRY THE REGULATOR IS TAKING A MORE PROACTIVE STANCE WITHIN THE BRONFMAN GROUP THERE HAS BEEN SIGNIFICANT EROSION OF CREDIT QUALITY AND THE REGULATOR WANTS TO KNOW THE BANKS HAVE ADEQUATELY PROVISIONED FOR THEIR EXPOSURE SAID MARIA BERLETTANO A FINANCIALSERVICES ANALYST AT CANADIAN BOND RATING SERVICE OF MONTREAL A NUMBER OF THE GROUP'S STOCKS FELL AFTER THE REGULATORY INVESTIGATION WAS MADE PUBLIC IN LOCAL NEWS REPORTS YESTERDAY MANY OF THE STOCKS WHICH RECENTLY HIT 52WEEK LOWS ARE CURRENTLY TRADING AT ONETHIRD TO ONEHALF THEIR BEST LEVELS FOR THE PAST 52 WEEKS WHEN YOU START READING IN THE PRESS SO MANY STORIES OF OTHER PEOPLE BEING SO DEEPLY CONCERNED ABOUT THINGS THEN IT IS PRUDENT AND RESPONSIBLE OF US TO MAKE SURE THAT THE INSTITUTIONS THAT WE REGULATE ARE DEALING IN A PRUDENT WAY WITH THEIR EXPOSURE TO ANY ORGANIZATION SAID NANCY MURPHY A SPOKESWOMAN FOR THE OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS WHICH REGULATES CANADA'S FINANCIAL INSTITUTIONS IT'S A MONITORING ACTIVITY THAT SHOULDN'T BE CONSTRUED TO SHOCK SHE SAID BANKS SAID THEY PLAN TO COMPLY WITH THE REGULATOR'S REQUEST 9302120110 930212 DEBTRELIEF SET FOR POLAND AIDS ITS ENVIRONMENT BUT DEBTFORNATURE SWAPS IN EAST EUROPE NATIONS FACE MANY DIFFICULTIES BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL DEBTFORNATURE SWAPS MAY NOT ONLY HELP PRESERVE THE RAIN FORESTS OF LATIN AMERICA BUT MAY ALSO BE ONE REMEDY FOR THE POLLUTED SKIES AND RIVERS OF EASTERN EUROPE POLAND IS SEEING THE FIRST FRUITS OF A DEBTRELIEF AGREEMENT WITH THE SOCALLED PARIS CLUB OF CREDITOR NATIONS SAYS MACJEJ NOWICKI A FORMER ENVIRONMENT MINISTER AND PRESIDENT OF THE ECOFUND FOUNDATION IN WARSAW UNDER THE ACCORD THE COUNTRY CAN BE FORGIVEN 10 OF A FOREIGN DEBT PROVIDED IT IS USED FOR URGENT ENVIRONMENTAL CLEANUP THIS YEAR THE FIRST PORTION OF 360 MILLION IN DEBT RELIEF FROM THE US WILL BE USED TO FINISH BUILDING A WASTEWATER PLANT IN GDANSK AND A GAS PIPELINE FOR A REMOTE TOWN IN THE TATRA MOUNTAINS WHERE COAL BURNING HAS CAUSED DANGEROUS LEVELS OF AIR POLLUTION THE POLES' DEBTFORNATURE SWAP IS A RARE SUCCESS STORY IN DEALING WITH THE REGION'S ENVIRONMENTAL NEEDS EXPERTS AT A RECENT CONFERENCE ON FINANCING ENVIRONMENTAL REFORM IN EASTERN EUROPE AT THE ASPEN INSTITUTE IN BERLIN HAD A FAR LONGER LIST OF DIFFICULTIES THAN SOLUTIONS THE NEWLY DEMOCRATIC COUNTRIES ARE STRUGGLING WITH A LACK OF TECHNOLOGY TO MEASURE DECADES OF NEGLECT AND INSUFFICIENT ENVIRONMENTAL LEGISLATION EXCEPT FOR THE US CREDITOR COUNTRIES ARE WAITING TO SEE HOW POLAND'S ECOFUND FOUNDATION WORKS OUT BEFORE SETTING PACTS MR NOWICKI ITS PRESIDENT IS OPTIMISTIC WE ARE FOCUSING ON AREAS OF INTERNATIONAL IMPORTANCE HE SAID HOWEVER POLAND MAY NOT BE A MODEL FOR THE REST OF CENTRAL AND EASTERN EUROPE AS ITS DEBT DIFFERS FROM THEIRS IT IS MOSTLY WITH GOVERNMENTS NOT COMMERCIAL LENDERS MAKING SUCH A SWAP EASIER THE SWAP PLAN ATTEMPTS TO OVERCOME A MAJOR DISAGREEMENT ON ENVIRONMENTAL ACTION BETWEEN EAST AND WEST WHILE EAST EUROPEANS WANT TO CLEAN UP THEIR OWN TERRAIN WATER AND AIR FIRST WESTERNERS WHO COMMIT HELP EXPECT THEM TO BEGIN WITH PROBLEMS WITH INTERNATIONAL RAMIFICATIONS SUCH AS OZONE LAYER DEPLETION AND POLLUTION OF WATERWAYS THAT CROSS BORDERS THE LARGEST OBSTACLE TO ANY ENVIRONMENTAL EFFORT IN THE EAST IS LACK OF LOCAL FUNDING GOVERNMENTS' SCARCE FUNDS GO FIRST TO MEETING BARE NECESSITIES OF REFORM THE ENVIRONMENT IS A VERY LOW PRIORITY COMPLAINED BEDRICH MOLDAN A PROFESSOR AT THE CENTER OF ENVIRONMENTAL SCHOLARSHIP AT PRAGUE'S CHARLES UNIVERSITY EDWARD D SANDERS A PARTNER AT A US ENVIRONMENTAL CONSULTING FIRM THAT ADVISES INVESTORS PUTTING MONEY IN EASTERN EUROPE ESTIMATED THAT 2 BILLION TO 3 BILLION A YEAR COULD BE RAISED FOR ENVIRONMENTAL PURPOSES THERE THAT WOULD COVER ONLY 20 TO 25 OF THE 125 BILLION NEEDED FOR THE REGION'S YEARLY ENVIRONMENTAL CLEANUP OVER THE NEXT FEW YEARS HE SAID MR SANDERS WARNED THAT ENVIRONMENTALISTS AND EAST EUROPEAN OFFICIALS SHOULD BE PRAGMATIC IF YOU CAN ACCEPT GOALS THAT COVER 80 OF THE NEED GO FOR IT HE SAID WITH RESOURCES OF LOCAL GOVERNMENT AND PRIVATE CHANNELS SCARCE AND FUNDS FROM INTERNATIONAL ORGANIZATIONS LIMITED MANY EXPERTS BELIEVE ENVIRONMENTAL SALVATION LIES IN FOREIGN INVESTMENT BUYERS OF EASTERN ENTERPRISES ARE ALSO MORE AWARE OF THE HIGH ENERGY COSTS OF INEFFICIENT POLLUTING METHODS THAN ARE FORMER SOCIALIST MANAGERS WHO ARE OFTEN STILL IN CHARGE WESTERN INVESTORS HAVE SOMETIMES BEEN REPROACHED FOR ECODUMPING OR MOVING COMPANIES TO EASTERN EUROPE THAT ARE TOO DIRTY FOR THE WEST HOWEVER FEW WESTERN INVESTORS NOW THINK THIS IS A GOOD IDEA ANDREAS GUMMICH AN ECONOMIST WITH DEUTSCHE BANK RESEARCH IN FRANKFURT SAID SOME BLACK SHEEP ARE SELLING DIRTY PLANTS BUT MAJOR INVESTORS KNOW THAT THE REGULATIONS WILL BE MUCH STRICTER IN A FEW YEARS AND IT WILL BE EXPENSIVE TO REFURNISH THE INSTALLATIONS THEN WAITING FOR A FUNCTIONING MARKET ISN'T A QUICK SOLUTION FOR DEAD RIVERS IN ROMANIA CANCER VICTIMS IN UKRAINE OR HIGH INFANTMORTALITY RATES IN THE BLACK TRIANGLE IN SOUTHERN POLAND BUT EXPERTS SAY THERE IS REASON FOR HOPE DON'T UNDERESTIMATE THE POWER OF THE MARKET SYSTEM SAID RICHARD BENEDICK A SENIOR FELLOW AT THE WORLD WILDLIFE FUND IN WASHINGTON IF YOU'RE DOING THE RIGHT THING ON THE ECONOMIC SIDE YOU'RE ALSO DOING THE RIGHT THING ON THE ECOLOGICAL SIDE BESIDES ITS DEBT SWAP PROGRAM POLAND SET UP A FUND FOR ENVIRONMENTAL PROTECTION THAT COLLECTS FEES AND PENALTY PAYMENTS FROM COMPANIES EXCEEDING THEIR LIMITS ON EMISSION OF POLLUTANTS SUCH FUNDS MAKE UP 30 OF INVESTMENT IN POLISH CLEANUP LAST YEAR THE FUND DISTRIBUTED BETWEEN 300 MILLION AND 400 MILLION FROM FEES AND FINES TO MUNICIPAL GOVERNMENTS FOR BUILDING SEWAGE SYSTEMS AND INSTALLING AIR FILTERS AS A RESULT AIR QUALITY IN THE INDUSTRIAL CITY OF KATOWICE IN SOUTHERN POLAND HAS IMPROVED MARKEDLY AND ANDRZEJ KAMIENSKI OF THE MINISTRY OF ENVIRONMENTAL PROTECTION NATURAL RESOURCES AND FORESTRY SAID POLAND IS BUILDING 700 WASTE WATER PLANTS ANOTHER POSITIVE SIGN IS THE DEVELOPMENT OF GRASSROOTS ECOLOGICAL MOVEMENTS IN THE REGION THE FIRST ONES BEGUN AS POLITICAL OPPONENTS TO SOCIALISM DISSOLVED WHEN THE TOTALITARIAN SYSTEMS FELL PETER HARDI AN HUNGARIAN ENVIRONMENTALIST SAID THE CHALLENGE IS TO UNIFY 90 TO 100 SMALL GROUPS THAT HAVE EMERGED DESPITE FEARS THAT STRONG GREEN MOVEMENTS COULD DETER INVESTORS THE EUROPEAN COMMUNITY AND WORLD BANK SUPPORT SUCH ORGANIZATIONS IN THE EAST 9302120109 930212 GERMAN INTEREST RATE DECLINE EXPECTED TO CONTINUE BASED ON PAST PATTERNS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT HOW QUICKLY WILL THE BUNDESBANK CONTINUE TO BRING DOWN GERMAN INTEREST RATES HISTORY OFFERS A CLUE DURING THE RECESSIONS OF 1975 AND 1982 THE BUNDESBANK CUT INTEREST RATES RAPIDLY AND SUBSTANTIALLY TRUE GERMANY'S COSTLY REUNIFICATION HAS ALTERED THE EQUATION BUT AFTER THE BUNDESBANK BROKE THE ICE LAST WEEK THE CONSENSUS IS THAT ONLY BONN'S MUDDLED UNITY FINANCES STAND IN THE WAY OF HISTORY REPEATING ITSELF MANY ANALYSTS NOW SAY THE BUNDESBANK'S NEXT MOVE COULD COME SOMETIME IN MARCH BONN ECONOMIC ADVISERS ASSERTED LAST FALL THAT QUICK RATE REDUCTIONS THIS SPRING COULD DECIDE WHETHER THE GERMAN ECONOMY HAS A CHANCE OF REVERSING A DEEPENING RECESSION BY THE END OF THIS YEAR CENTRAL TO CHANCELLOR HELMUT KOHL'S REELECTION HOPES IN LATE 1994 ABROAD LOWER GERMAN INTEREST RATES WOULD ALLOW OTHER EUROPEAN COUNTRIES TO BRING DOWN INTERESTRATES THAT DEFEND THEIR CURRENCIES BUT ARE STRANGLING THEIR ECONOMIES IT ALSO WOULD BRING GERMAN MONETARY POLICIES IN ALIGNMENT WITH OTHER GROUP OF SEVEN LEADING INDUSTRIAL COUNTRIES SATISFYING US CALLS FOR MORE COOPERATION IN FORGING POLICIES FOR GLOBAL RECOVERY IN CURRENCY MARKETS LOWER GERMAN INTEREST RATES COULD FORESTALL ANOTHER ROUND OF SPECULATIVE ATTACKS ON THE STRUCTURALLY WEAKENED EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM IN DENMARK LOWER GERMAN RATES BY MAY MIGHT HELP SECURE A YES VOTE WHEN DENMARK VOTES IN ITS SECOND REFERENDUM ON THE MAASTRICHT TREATY WHICH IT NARROWLY REJECTED LAST SUMMER CHRISTOPHER POTTS AN ECONOMIST WITH BANQUE INDOSUEZ IN PARIS PREDICTS THE BUNDESBANK ISN'T LIKELY TO KEEP MARKETS IN SUSPENSE FOR LONG THE POINT IS THAT GERMANY IS IN A RECESSION AND ITS POLICIES ARE UNSUSTAINABLE THE WAITING PERIOD COULD BE SIX WEEKS AFTER THAT THE PRESSURE WOULD BE OFF THE ERM HE SAID BY YEAR END SHORTTERM GERMAN INTEREST RATES NOW AT MORE THAN 8 COULD BE DOWN TO NEAR 6 HE PREDICTS AS ARGUMENTS FOR LOWER GERMAN RATES MULTIPLIED THE BUNDESBANK LAST WEEK REDUCED ITS DISCOUNT RATE TO 8 FROM 825 OR BY 25 BASIS POINTS IT WAS A GESTURE AND DEEMED WOEFULLY SHORT OF THE CUTS OF TWO TO THREE FULL PERCENTAGE POINTS NEEDED MOST ECONOMISTS BELIEVE THAT ANOTHER MODEST RATE REDUCTION WILL COME IN THE NEXT SEVERAL WEEKS AS INFLATION PRESSURES WANE IN A WESTERN GERMANY ECONOMY PROJECTED TO CONTRACT BY AS MUCH AS 1 THIS YEAR WITH JOBLESSNESS TOTALLING MORE THAN THREE MILLION PEOPLE OR NEAR 8 OF THE WORK FORCE YESTERDAY ONE OF GERMANY'S FIVE WISE MEN SAID THE BUNDESBANK SHOULDN'T WAIT LONG BEFORE CUTTING RATES FURTHER CITING BOTH THE RECESSION AND THE EFFECT THAT HIGH RATES HAVE ON THE COUNTRY'S NEIGHBORS RUEDIGER POHL WHO SITS ON GERMANY'S EQUIVALENT OF THE US COUNCIL OF ECONOMIC ADVISERS SAID THE BUNDESBANK MUST OPEN ITSELF TO ITS RESPONSIBILITY TOWARD EUROPE IN 1975 WHEN WEST GERMANY'S ECONOMY CONTRACTED 14 THE BUNDESBANK PULLED DOWN ITS DISCOUNT RATE TO 35 FROM 6 BETWEEN JANUARY AND DECEMBER A DROP OF 250 BASIS POINTS IN THE 1982 RECESSION THE BUNDESBANK'S DISCOUNT RATE WAS AGAIN CUT THIS TIME BY A TOTAL OF 35 POINTS TO 4 FROM 75 BETWEEN AUGUST 1982 AND MARCH 1983 ULRICH SCHROEDER AN ECONOMIST FOR DEUTSCHE BANK RESEARCH SEES THE PATTERN REPEATING ITSELF THE FINANCIAL SHOCKS OF GERMAN UNITY AND BUNDESBANK CONCERNS OVER BONN'S FOGGY FISCAL REFORMS MIGHT PREVENT AN IDENTICAL RECURRENCE BUT ONLY BY LIMITING THE DEPTH OF THE CUTS HE SAID A DECLINE OF 150 BASIS POINTS IN THE NEXT 12 MONTHS COULD BE ON THE CONSERVATIVE SIDE PREDICTED MR SCHROEDER EXPERIENCE SHOULD NOT BE IGNORED WHEN IT TELLS US THAT ONCE THEY BEGIN TO DROP KEY RATES USUALLY FALL RATHER QUICKLY AND QUITE SUBSTANTIALLY WHAT WE SAW LAST WEEK WAS THE FIRST STRAINS OF THE OVERTURE GERMAN UNIONS ARE FINALLY CRACKING WHICH IS HELPFUL FOR THE CAUSE OF LOWER INTEREST RATES SAID WARREN OLIVER AN ECONOMIST WITH SG WARBURG IN LONDON NOW FEDERAL AND STATE FINANCES REMAIN THE CHIEF OBSTACLE AND THE BUNDESBANK IS ALMOST CERTAIN TO WAIT FOR THE NEXT DEADLINE FOR CHANCELLOR HELMUT KOHL'S SOLIDARITY PACT ON MARCH 1112 WHEN FEDERAL AND STATE OFFICIALS BUSINESS LEADERS AND UNION BOSSES ARE TO MEET IN A FINAL ROUND OF TALKS ON A NATIONAL AUSTERITY PACKAGE THE TIMING OF THE EVENT HAS TURNED THE BUNDESBANK'S REGULARLY SCHEDULED MARCH 18 CENTRAL BANK COUNCIL INTO A REDLETTER DAY FOR EXPECTANT FINANCIAL MARKETS THE AIM IS TO GET 20 BILLION MARKS 121 BILLION IN BUDGETARY SAVINGS BY 1995 TO REVERSE A PUBLICSECTOR BORROWING REQUIREMENT THAT BALLOONED TO 207 BILLION MARKS IN 1993 FROM 188 BILLION MARKS LAST YEAR AS THE UNITY BILL KEPT CLIMBING ACCORDING TO A CREDIT SUISSE FIRST BOSTON ANALYSIS IN 1995 BONN FACES 400 BILLION MARKS IN OLD EAST GERMAN DEBT THAT BEGINS COMING DUE ACCUSTOMED TO WEALTH AND THE NOTION OF ECONOMIC INVULNERABILITY AND PROUD OF IT FEW GERMANS ARE IN A GIVING MOOD EACH TIME MR KOHL TURNS AROUND HE'S BUMPED INTO PROTEST EVEN WITHIN HIS OWN CABINET DEFENSE MINISTER VOLCKER RUEHE'S OBJECTIONS TO CUTS IN HIS BUDGETS HAD TO BE OVERRULED BY MR KOHL WHO ALSO IS FACING DOWN RESISTANCE FROM HIS JUNIOR COALITION PARTNER THE FREE DEMOCRATS WHO ARE PROTESTING EXTRA SOCIAL INSURANCE CONTRIBUTIONS FOR BUREAUCRATS AND SELFEMPLOYED PROFRESSIONALS IN OTHER SPENDING CURBS GOVERNMENT PAYROLLS WILL BE CUT SUBSIDIES TO FARMERS AND THE COAL AND SHIPBUILDING INDUSTRIES TRIMMED AND JOBLESS SUPPORT WON'T BE WHAT IT USED TO BE WEST GERMAN BUSINESS LOBBIES ARE PROTESTING MR KOHL'S PLANS TO INCREASE REVENUES THESE INCLUDE HIGHER TAXES ON INSURANCE POLICIES BEGINNING THIS SUMMER AN INCREASE IN MINERAL OIL TAXES IN 1994 AND REINTRODUCING AN INCOMETAX SURCHARGE IN 1995 TAX EXEMPTIONS FOR INSTANCE ON FOREIGN INVESTMENT FUNDS WILL BE CLOSED ALSO FRUSTRATING MR KOHL'S PROGRESS ARE STATE GOVERNMENTS WHO REFUSE TO CEDE ABOUT EIGHT BILLION MARKS IN TAX PROCEEDS TO BONN FOR REALLOTMENT IN THE EAST THE POWERFUL IG METALL METALWORKERS UNION REFUSES TO AGREE TO POSTPONE A CONTRACTUAL REDUCTION IN THE OFFICIAL WORKING WEEK TO 36 HOURS PER WORKER FROM 37 HOURS IN APRIL IT ALSO IS RESISTING PRESSURE TO REOPEN TALKS THAT PROVIDED FOR WAGE INCREASES IN EASTERN GERMANY THAT BUSINESSES SAY IS A SERIOUS DISINCENTIVE FOR INVESTMENTS THE SETTLEMENT WOULD BRING EASTERN GERMAN WAGES TO NEARLY 80 OF WESTERN GERMAN LEVELS DESPITE A WORKER PRODUCTIVITY RATE IN THE EAST AMOUNTING TO ONLY 36 OF WESTERN STANDARDS 9302120108 930212 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED FEB 5 ACCOUNTED FOR 79 OR AN AVERAGE 242 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 194 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 356 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 475 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 461 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 48 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 59 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND UBS SECURITIES DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY FIRST BOSTON AND BEAR STEARNS DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9302120107 930212 PAKISTANI SUSPECT IN SHOOTING AT CIA ENTERED US ILLEGALLY SOUGHT ASYLUM BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MIR AIMAL KANSI WHO IS BEING SOUGHT IN THE KILLING OF TWO CENTRAL INTELLIGENCE AGENCY EMPLOYEES OUTSIDE THE AGENCY'S HEADQUARTERS WAS ONE OF MORE THAN 1600 PAKISTANIS WHO ENTER THE US ILLEGALLY EACH YEAR THE GOVERNMENT HAS NO RECORD OF WHEN MR KANSI ENTERED THE US ACCORDING TO A STATE DEPARTMENT OFFICIAL WHO ASKED NOT TO BE IDENTIFIED THE OFFICIAL SAID THAT THE USE OF COUNTERFEIT OR ALTERED DOCUMENTS IS SO WIDESPREAD AND LUCRATIVE IN PAKISTAN THAT IT HAS ATTRACTED CRIMINALS AND TERRORIST GROUPS THE OFFICIAL ACKNOWLEDGED THAT THE US EMBASSY IN KARACHI DISCOVERED A YEAR AGO THAT SOME MEMBERS OF A TERRORIST GROUP THE MUHAJIR QUAMI MOVEMENT HAD BEEN ISSUED TOURIST VISAS TO THE US ACCORDING TO REPORTS IN PAKISTANI NEWSPAPERS AT THE TIME THE GROUP USED THE DOCUMENTS TO GET RID OF SOME OF ITS MORE UNSTABLE MEMBERS BY SENDING THEM ON ONEWAY TRIPS TO THE US AT THE TIME THEY WERE ISSUED THE OFFICIAL ADDED THERE WAS NO WAY TO TELL THE PEOPLE WERE PART OF A TERRORIST GROUP US LAW ENFORCEMENT OFFICIALS HOWEVER HAVEN'T LINKED MR KANSI 28 YEARS OLD TO ANY ORGANIZED GROUP PAKISTANIS ARE THE SECONDLARGEST GROUP ENTERING THE US WITH PHONY DOCUMENTS AFTER THE CHINESE ACCORDING TO THE STATE DEPARTMENT OFFICIAL GENERALLY WHEN PAKISTANIS ARRIVE ILLEGALLY IN THE US THEY ARE GIVEN TEMPORARY WORK PERMITS AND ALLOWED TO REMAIN WHILE THE US IMMIGRATION AND NATURALIZATION SERVICE SORTS THROUGH THEIR CASES DUKE AUSTIN A SPOKESMAN FOR THE INS SAID MR KANSI WAS ONE OF 250000 IMMIGRANTS WITH PENDING APPLICATIONS FOR POLITICAL ASYLUM AT THE TIME OF THE JAN 25 SHOOTING HIS CASE HAD BEEN PENDING FOR MORE THAN A YEAR AND NO HEARING HAD BEEN SCHEDULED ACCORDING TO WIRE SERVICE REPORTS FROM QUETTA PAKISTAN MR KANSI'S HOMETOWN HE BRIEFLY VISITED HIS FAMILY THERE LAST WEEK HE HAS SINCE DISAPPEARED YESTERDAY PAKISTAN'S GOVERNMENT ANNOUNCED THAT IT WAS JOINING THE US IN THE HUNT FOR HIM MR KANSI IS SAID TO BE THE SON OF A WEALTHY BUILDING CONTRACTOR AND HAS A MASTER'S DEGREE IN ENGLISH LITERATURE FROM A UNIVERSITY IN PAKISTAN BEFORE THE SHOOTING IN WHICH A LONE GUNMAN FIRED AN AK47 AT WORKERS ARRIVING AT THE MAIN GATE OUTSIDE THE CIA'S HEADQUARTERS IN LANGLEY VA MR KANSI HAD BEEN WORKING AS A COURIER FOR EXCEL COURIER INC A HERNDON VA COMPANY THAT IS OWNED BY CHRISTIAN MARCHETTI MR MARCHETTI'S FATHER VICTOR MARCHETTI IS A FORMER CIA OFFICIAL WHO RESIGNED IN THE 1970S TO WRITE THE CULT OF INTELLIGENCE A SCATHING ATTACK ON THE CIA'S ALLEGED OVERSEAS POLITICAL MANIPULATIONS AND CORRUPTION CHRISTIAN MARCHETTI SAID THAT THERE WAS NO CONTACT BETWEEN MR KANSI AND VICTOR MARCHETTI WHO HAS AN OFFICE AT EXCEL AND THAT MR KANSI MADE NO DELIVERIES TO THE CIA MR KANSI WAS A VERY ARTICULATE VERY INTELLIGENT VERY NICE GUY HE SAID WE'RE SHOCKED TO FIND OUT HOW HE COULD BE INVOLVED IN SOMETHING LIKE THIS MR AUSTIN SAID THE US FIRST LEARNED OF MR KANSI'S PRESENCE IN THE COUNTRY WHEN THE INS RECEIVED A LETTER DATED FEB 2 1992 ASKING FOR POLITICAL ASYLUM THE LETTER SAID THAT HE HAD ENTERED THE US AT KENNEDY AIRPORT IN NEW YORK ON MARCH 3 1991 BUT MR AUSTIN SAID THAT THERE IS NO RECORD OF HIS ENTRY INTO THIS COUNTRY THE STATE DEPARTMENT OFFICIAL SAID THAT IT IS POSSIBLE THAT MR KANSI USED AN ALTERED PASSPORT TO ENTER THE US UNDER ANOTHER NAME IN KARACHI SUCH PASSPORTS AND THE VISAS THAT MUST ACCOMPANY THEM ARE SOLD AND THE PICTURE OF THE BUYER IS SUBSTITUTED FOR THE ORIGINAL PHOTO ONCE THE BUYER ENTERS THE COUNTRY THE PASSPORT IS MAILED BACK TO KARACHI AND USED BY SOMEBODY ELSE HE SAID UNDER US LAW A PERSON APPLYING FOR POLITICAL ASYLUM MUST PROVIDE EVIDENCE OF A WELLFOUNDED FEAR OF PROSECUTION IN HIS OR HER HOME COUNTRY MR AUSTIN SAID THE INS COULDN'T RELEASE MR KANSI'S LETTER BECAUSE IT IS CONSIDERED CONFIDENTIAL 9302120106 930212 BUSINESS BRIEF JWP TO REPORT LOSS RESTRUCTURING CHARGE FOR FOURTH QUARTER RYE BROOK NY TECHNICAL SERVICES GIANT JWP INC STILL IN THE MIDST OF A RETRENCHMENT SAID IT WILL TAKE A RESTRUCTURING CHARGE OF MORE THAN 80 MILLION FOR THE FOURTH QUARTER AS A RESULT JWP SAID IT EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER AND WILL REPORT ADDITIONAL BUT UNSPECIFIED CHARGES REFLECTING A REDUCTION IN THE CARRYING VALUE OF GOODWILL AND OTHER INTANGIBLES THE NET LOSS FOR THE QUARTER AND YEAR WILL BE REPORTED AT THE END OF MARCH JWP ALSO SAID IT EXPECTS REVENUE WILL BE ABOUT 15 MILLION HIGHER THAN THIRDQUARTER REVENUE OF 1 BILLION IN THE FOURTH QUARTER A YEAR EARLIER THE COMPANY HAD NET INCOME OF 161 MILLION OR 39 CENTS A SHARE ON REVENUE OF 12 BILLION DEBTLADEN JWP WHICH IS PARING UNITS AFTER AGGRESSIVELY BUYING COMPANIES IN THE 1980S ALSO SAID MOST OF ITS BANKS AND SENIOR NOTEHOLDERS WILL GIVE IT THREE MORE MONTHS OF FORBEARANCE THE CREDITORS REACHED AN AGREEMENT IN PRINCIPLE TO EXTEND THEIR STANDSTILL AGREEMENT UNDER WHICH THEY WON'T TAKE ANY ACTION AGAINST JWP FOR NONCOMPLIANCE WITH LOAN AND DEBT TERMS FROM JAN 31 TO APRIL 30 JWP HAS TOTAL DEBT OF 4844 MILLION THE COMPANY HAS BEEN IN NEGOTIATIONS WITH LENDERS SINCE NOVEMBER WHEN IT FAILED TO COMPLY WITH CERTAIN LOAN COVENANTS AS A RESULT OF ITS THIRDQUARTER LOSS JWP SAID IT WOULD CONTINUE TO REFRAIN FROM MAKING PRINCIPAL PAYMENTS TO THE LENDERS AND WILL PAY INTEREST AT A REDUCED RATE IT EXPECTS TO MEET ALL ITS OTHER OBLIGATIONS INCLUDING PAYMENTS TO LENDERS TO ITS SUBSIDIARIES JWP SHARES CLOSED UNCHANGED YESTERDAY AT 375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9302120105 930212 CANADA'S CHRETIEN PLEDGES TO CHANGE COURSE ON INFLATION BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S LIBERAL PARTY LEADER JEAN CHRETIEN WHO IS CURRENTLY FAVORED TO BECOME THE NEXT PRIME MINISTER PLEDGED THAT A LIBERAL GOVERNMENT WOULD ABANDON THE CURRENT GOVERNMENT'S ZERO INFLATION GOAL AND SCRAP THE 7 VALUEADDED TAX THE STRATEGY THREATENS TO PUT THE LIBERALS ON A COLLISION COURSE WITH FINANCIAL MARKETS AND WITH BANK OF CANADA GOVERNOR JOHN CROW A STAUNCH ADVOCATE OF PRICE STABILITY THE FINANCIAL MARKETS AREN'T GOING TO BE HAPPY WITH MR CHRETIEN'S REMARKS SAID RUTH GETTER A TORONTO DOMINION BANK ECONOMIST SHE SAID THE MARKETS MUCH PREFER THE TOUGH ANTIINFLATION STAND OF THE BANK OF CANADA GOVERNOR MR CHRETIEN A FORMER FINANCE MINISTER CLAIMED THAT THE ANTIINFLATION POLICY HAS PUSHED UNEMPLOYMENT TO AN UNACCEPTABLY HIGH LEVEL CANADA'S UNEMPLOYMENT RATE IS CURRENTLY 11 OF THE WORK FORCE LIBERALS BELIEVE THAT WE SHOULD ATTEMPT TO DO ABOUT AS WELL AS THE UNITED STATES ON INFLATION HE SAID ONLY IN VERY UNUSUAL CIRCUMSTANCES SHOULD WE ATTEMPT TO DO MUCH BETTER CANADA RECORDED THE LOWEST INFLATION RATE AMONG MAJOR INDUSTRIAL COUNTRIES LAST YEAR ITS CONSUMER PRICE INDEX ROSE AN AVERAGE 15 OR HALF THE US RATE OF INCREASE MR CHRETIEN SET OUT THE LIBERALS' ECONOMIC POLICY OBJECTIVES IN A CAMPAIGN SPEECH IN TORONTO AN ELECTION HAS TO BE HELD BEFORE THE END OF THIS YEAR BUT PRIME MINISTER BRIAN MULRONEY HASN'T YET SET THE DATE FOR THE VOTE THE LATEST GALLUP POLL SHOWED THE LIBERALS SUPPORTED BY 49 OF DECIDED VOTERS AND MR MULRONEY'S PROGRESSIVE CONSERVATIVES BY ONLY 19 THE REMAINDER SUPPORTED OTHER PARTIES JAMES FRANK CHIEF ECONOMIST OF THE CONFERENCE BOARD OF CANADA AN ECONOMIC RESEARCH ORGANIZATION SAID CANADA'S CREDIBILITY IN INTERNATIONAL FINANCIAL MARKETS DEPENDS ON THE GOVERNMENT STICKING TO ITS ANTIINFLATION GOALS CANADA HAS TO MAINTAIN THE GOODWILL OF THE FINANCIAL MARKETS BECAUSE FOREIGN INVESTORS HOLD MORE THAN A QUARTER OF THE FEDERAL GOVERNMENT'S DEBT THE BANK OF CANADA AND THE GOVERNMENT IN 1991 JOINTLY SET SPECIFIC TARGETS FOR REDUCTION OF INFLATION THESE TARGETS ARE TO LEAD TO PRICE STABILITY GOV CROW SAID IN A SPEECH WEDNESDAY AT SOUTH AFRICA'S UNIVERSITY OF PRETORIA THAT PRICE STABILITY SHOULD BE THE FOCUS OF CENTRAL BANK MANDATES HAVING THE OBJECTIVE OF PRICE STABILITY CLEARLY EXPRESSED IN THE MANDATE OF THE MONETARY AUTHORITY ESTABLISHES A GOAL FOR MONETARY POLICY THAT IS UNDERSTANDABLE AND THAT WILL BE CONSISTENT OVER TIME HE SAID 9302120104 930212 KIII COMMUNICATIONS STOCKS NEW YORK KIII COMMUNICATIONS CORP SAID IT SOLD 100 MILLION OF EXCHANGEABLE PREFERRED STOCK IN A RULE 144A PRIVATE TRANSACTION THE CLOSELY HELD MEDIA AND INFORMATION CONCERN SAID IT WOULD USE THE PROCEEDS TO REDEEM CONVERTIBLE PREFERRED STOCK AND REDUCE BANK DEBT 9302120103 930212 INTERNATIONAL AIR FRANCE AND VIETNAM AIRLINES HO CHI MINH CITY VIETNAM AIR FRANCE CONFIRMED A COOPERATION AGREEMENT WITH VIETNAM AIRLINES AIR FRANCE SAID IT PROPOSES TO ASSIST VIETNAM AIRLINES IN THE OPERATION OF A MODERN FLEET ADAPTED TO ITS NETWORK THE RENOVATION OF THE MAINTENANCE FACILITIES FOR ITS FLEET THE ADAPTATION OF ITS ORGANIZATION AND THE TRAINING OF ITS FLIGHT DECK CREW GROUND STAFF AND MANAGEMENT THE COMPANY SAID IT WAS ALSO AGREED THAT THE PARTNERSHIP COULD IN TIME FORGE CLOSER TIES AND PERHAPS LEAD TO AIR FRANCE TAKING A STAKE IN THE VIETNAMESE CARRIER ALSO SOCIETE DES HOTELS MERIDIEN AN UNIT OF THE AIR FRANCE GROUP SAID IT WILL BUILD A LUXURY HOTEL IN HO CHI MINH CITY THE HOTEL IS SCHEDULED TO OPEN IN 1996 IT IS ALSO EXAMINING THE POSSIBILITY OF OPENING A HOTEL IN HANOI 9302120102 930212 LEISURE & ARTS TELEVISION ANOTHER HALEY FAMILY SAGA BY ROBERT GOLDBERG JAN 2330 1977 THAT WAS THE WEEK AMERICA SHUT DOWN TO WATCH TV THEATERS EMPTIED RESTAURANTS CLOSED UP EVEN CONGRESS LET OUT EARLY ALL FOR A MINISERIES BUT THEN ROOTS WAS MORE THAN A SHOW IT WAS A PHENOMENON IN THAT ONE WEEK ACCORDING TO PRODUCER DAVID L WOLPER MORE PEOPLE SAW ROOTS THAN HAD SEEN THE PLAYS OF SHAKESPEARE IN ALL THE PERFORMANCES OVER ALL THE CENTURIES ON ALL THE STAGES OF THE WORLD MAYORS OF 30 CITIES DECLARED ROOTS WEEK HEADS OF 250 COLLEGES ANNOUNCED ROOTS CURRICULUMS AND A NATION TUNED IN TO A HISTORICAL POTBOILER CAUGHT UP IN THE THRILL OF SERIAL MELODRAMA AND A KIND OF MASS EXPLOITATION OF GUILT FOR ALL THOSE YEARS OF SLAVERY BUT AFTER THE MINISERIES AND ITS SEQUELS AFTER 26 HOURS OF ROOTS AND BRANCHES AND LITTLE TEENY TWIGS YOU WOULD THINK THEY HAD USED UP ALEX HALEY'S FAMILY TREE IN FACT THAT WAS ONLY HIS MOTHER'S SIDE OF THE FAMILY HALEY STILL HAD HIS WHOLE FATHER'S SIDE TO GO WHICH IS WHAT HE WAS WORKING ON WHEN HE DIED LAST YEAR THIS WEEK CBS BRINGS HALEY'S FINAL PROJECT TO THE SMALL SCREEN IN A THREEPART SIXHOUR MINISERIES THE STORY OF HIS PATERNAL GRANDMOTHER QUEEN CBS SUNDAY TUESDAY AND THURSDAY 911 PM EST ONCE AGAIN THIS IS BIG EVENT TELEVISION WITH ALL THE TRAPPINGS THE SWEEP OF HISTORICAL ROMANCE THE ELEGANCE OF COSTUME DRAMA THE ALLSTAR CAST THE LUSH SWELL OF VIOLINS THE SAGA BEGINS IN 1841 ON A SPRAWLING PLANTATION IN ALABAMA AN ILLICIT TRYST BETWEEN YOUNG SQUIRE JACKSON TIM DALY AND A SLAVE GIRL NAMED EASTER JASMINE GUY RESULTS IN A DAUGHTER THEY NAME QUEEN A FAIRSKINNED MULATTO CHILD SHE GROWS INTO A PRETTY YOUNG WOMAN BUT QUEEN HALLE BERRY WILL NEVER BE OFFICIALLY RECOGNIZED BY HER FATHER YOU ARE A CHILD OF THE PLANTATION SHE IS TOLD LIKE A THOUSAND OTHERS QUEEN IS HOWEVER TAKEN INTO THE BIG HOUSE AS A COMPANION TO JACKSON'S REAL DAUGHTER JANE KRAKOWSKI THE OUTBREAK OF THE CIVIL WAR TAKES A HEAVY TOLL ON THE PLANTATION AND THE FORTUNES OF THE JACKSON FAMILY AS THE WAR DRAWS TO A CLOSE QUEEN FINDS HERSELF FREE TO GO NO LONGER A SLAVE IRONICALLY THE ONE THING SHE REALLY WANTS TO DO IS STAY AND BE ACCEPTED BY HER FAMILY I GOT A RIGHT TO A LITTLE BIT OF LOVE SHE SAYS BUT THE REST OF THE JACKSON FAMILY DOESN'T AGREE AND SO SHE SETS OFF INTO THE WORLD ON HER OWN QUEEN FINDS ROMANCE AND HEARTBREAK AND MOST OF THE OTHER ELEMENTS OF MELODRAMA SHE IS WOOED SHE IS ASSAULTED SHE IS WELCOMED IN BY UNDERSTANDING EVANGELISTS WHO TRY TO TAKE AWAY HER CHILD AND SAVE ITS SOUL AND FINALLY AFTER MANY DEEPFOCUS LONG SHOTS WANDERING DOWN THE DUSTY HIGHWAYS OF THE RECONSTRUCTION WITH A CHILD ON HER HIP QUEEN COMES TO FIND TRUE LOVE WITH A WIDOWED FERRY BOAT CAPTAIN NAMED ALEC HALEY DANNY GLOVER IN CERTAIN WAYS QUEEN IS MORE SUBTLE THAN ROOTS THERE ARE FAR FEWER VILLAINS HERE EXCEPT FOR THE OCCASIONAL BRUTAL KLANSMAN MOST OF THE WHITES IN THIS MINISERIES ARE SMALLMINDED BUT FAIRLY HONORABLE THEIR BIG CRIME IS WITHHOLDING AFFECTION RATHER THAN SNAPPING A WHIP QUEEN NEVER GETS THE LASHES ACROSS THE BACK LIKE KUNTA KINTE AND VIEWERS WILL RARELY FEEL THE SAME FRISSON OF RIGHTEOUS INDIGNATION BUT IN MANY WAYS THIS HEROINE'S SITUATION IS MORE DELICATE MORE DRAMATICALLY INTERESTING NOT QUITE CAUCASIAN NOT QUITE NEGRO SHE FINDS HERSELF REJECTED BY BOTH WORLDS I NEARLY WHITE SHE PLEADS AND WITH HER LIGHT SKIN QUEEN IS IN FACT OCCASIONALLY ABLE TO PASS AS A WHITE AND THAT LEADS TO SOME OF THE MINISERIES' MOST INTRIGUING MORAL QUESTIONS TOUGH ISN'T IT LOOKING WHITE ASKS A FRIEND LONETTE MCKEE YELLOW THEY CALL IT DIRTY WHITE WE'RE LUCKY WE CAN CHOOSE BLACK IS HARD WHITE IS SO MUCH EASIER THE PROBLEM FOR QUEEN IS THAT SHE ISN'T QUITE SURE WHAT SHE IS LITTLE MISS INBETWEEN THAT'S ME SHE SAYS I JUST A MISTAKE QUEEN CAN STRUM THE HEARTSTRINGS WITH THE BEST OF THEM THE DEATH OF HER LOVER THE FIERCE PRIDE IN HER CHILDREN THESE PROVIDE POWERFUL EMOTIONAL MOMENTS THEN TOO THE SERIES HAS THAT SWEEPING EPIC VISION AN OLDFASHIONED YARN PLAYED ACROSS A BROAD HISTORICAL CANVAS BUT THERE ARE SOME MAJOR PROBLEMS IN THE PLOTTING OF DAVID STEVENS'S SCRIPT AS A VIEWER YOU'RE OFTEN UNSURE WHERE YOU ARE WHAT TOWN IS THIS WHAT YEAR IS THIS EVENTS POP UP OUT OF NOWHERE UNJUSTIFIED UNFATHOMABLE AT ONE POINT A BATTERED BRUSQUE STANDOFFISH QUEEN UNDERGOES A RADICAL TRANSFORMATION OVERNIGHT ONE MINUTE SHE'S SNAPPING AT EVERYONE THE NEXT SHE'S DISHING OUT SACCHARINE INSTEAD OF WAKING UP EACH MORNING SAYING I HATE IT' TRY WAKING UP SAYING I LIKE IT' AND THEN ALL OF A SUDDEN SHE'S GOING CRAZY LITERALLY AND THEY CART HER OFF TO AN INSANE ASYLUM THE PLOT JUST LURCHES ALONG FROM MOMENT TO MOMENT ABRUPT AND FRAGMENTED WITHOUT ANYTHING TO HOLD IT TOGETHER THE HIGHLIGHT OF THIS MINISERIES IS THE ACTING TALENT THE DIGNIFIED PAUL WINFIELD AS CAPTAIN JACK QUEEN'S GRANDFATHER SADA THOMPSON AS A BENEFACTRESS WITH AN ULTERIOR MOTIVE AND ABOVE ALL AS ALEC HALEY DANNY GLOVER WHOSE BIG GENTLE FACE LIGHTS UP WITH THE WARMEST MOST COMFORTABLE SMILE AS QUEEN MS BERRY HAS AN ATTRACTIVE FIRE BUT SHE LACKS RANGE BOTH EMOTIONAL AND CHRONOLOGICAL THIS SUNDAY MILLIONS WILL UNDOUBTABLY TURN AGAIN TO ANOTHER HALEY FAMILY SAGA BUT IN MANY WAYS IT WON'T BE THE SAME AS IN 1977 ROOTS WASN'T JUST A MINISERIES IT WAS A YARDSTICK IN RACE RELATIONS STILL THERE'S ONE THING THAT HASN'T CHANGED NEARLY ENOUGH SIXTEEN YEARS LATER IT'S A SAD IRONY THAT MANY BLACK ACTORS STILL FIND THEIR MAIN SERIOUS TV ACTING WORK IN ANOTHER SLAVE STORY 9302120101 930212 LEISURE & ARTS BOOKSHELF CLASSROOM BRAINWASHING' AND OTHER ILLS BY MICHAEL SCHWARTZ THOMAS SOWELL IS ONE OF AMERICA'S PREMIER ECONOMISTS YET ON THOSE OCCASIONS WHEN HE HAS VENTURED BEYOND HIS SPECIALTYAS IN HIS SURVEY OF THE PHILOSOPHY OF MARXISM OR HIS SOCIOLOGICAL STUDY OF AMERICAN ETHNIC GROUPS MR SOWELL HAS SHOWN A REMARKABLE BREADTH OF ERUDITION IN HIS NEW BOOK INSIDE AMERICAN EDUCATION THE DECLINE THE DECEPTION THE DOGMAS FREE PRESS 368 PAGES 2495 ON THE ILLS OF AMERICAN EDUCATION HE AGAIN DEMONSTRATES AN IMPRESSIVE RANGE OF KNOWLEDGE AND ACUITY OF OBSERVATION IN THE FIRST AND SHORTER SECTION OF THE BOOK MR SOWELL HONES IN ON ELEMENTARY AND SECONDARY EDUCATION WITH A CRITIQUE AS DEVASTATING AS IT IS CONCISE HIS FIRST TARGET IS THE INTELLECTUAL QUALITY OF SCHOOLTEACHERS WHO HE ARGUES ARE DISPROPORTIONATELY DRAWN FROM THE RANKS OF THE LEAST GIFTED COLLEGE GRADUATES AND THEN PLACED IN A SETTING THAT DISCOURAGES EXCELLENCE IT IS NEXT TO IMPOSSIBLE TO DISMISS TEACHERS FOR MERE INCOMPETENCE WHILE THOSE WHO ARE ACADEMICALLY TALENTED ARE LIKELY TO QUIT IN FRUSTRATION AVID CONSUMERS OF EDUCATIONAL FADS TEACHERS AFFORD A READY MARKET FOR CURRICULAR PROGRAMS AND TECHNIQUES AIMED AT THE PSYCHOLOGICAL ADJUSTMENT OF STUDENTS TUCKED UNDER THE BENIGN BANNERS OF SELFESTEEM DECISIONMAKING DRUG PREVENTION SEX EDUCATION OR ENRICHMENT FOR THE GIFTED AND TALENTED THESE PROGRAMS ARE ALL DESIGNED TO RESHAPE STUDENTS' ATTITUDES THESE PROGRAMS AMONG OTHER THINGS ELEVATE FEELINGS OVER THOUGHT UNDERMINE ACCEPTED MORAL AND CULTURAL STANDARDS AND ATTACK THE AUTHORITY OF PARENTS THE TECHNIQUES IMPORTED INTO THE CLASSROOM ARE SO MANIPULATIVE THAT MR SOWELL BLUNTLY REFERS TO THEM AS CLASSROOM BRAINWASHING MR SOWELL ALSO INVEIGHS AGAINST BILINGUAL EDUCATION CALLING IT HONEST GRAFT FEDERAL MONEY FOR THE EDUCATION OF STUDENTS WHO DO NOT SPEAK ENGLISH HE NOTES CREATES AN INCENTIVE FOR KEEPING AS MANY STUDENTS AS POSSIBLE IN SUCH PROGRAMS FOR AS LONG AS POSSIBLE THE STANDARDS FOR TEACHERS IN BILINGUAL PROGRAMS ARE PRACTICALLY NIL THE AUTHOR SAYS AND STUDENTS CAN BE ASSIGNED AND KEPT IN SUCH PROGRAMS WHEN IT IS OBVIOUSLY AGAINST THEIR INTERESTS MR SOWELL CITES THE GROTESQUE EXAMPLE OF CHINESE IMMIGRANT STUDENTS CATEGORIZED AS IN NEED OF BILINGUAL EDUCATION AND THEN ASSIGNED TO SPANISHLANGUAGE PROGRAMS BECAUSE THAT WAS WHERE SPACE WAS AVAILABLE IN HIS MAIN ARGUMENT ABOUT HIGHER EDUCATION MR SOWELL COVERS GROUND OTHER WRITERS HAVE CHRONICLED THOUGH THE ECONOMIC ANALYSIS HE BRINGS TO SINKING STANDARDS IS INVARIABLY ENLIGHTENING AND HELPS EXPLAIN WHY REFORM IS SO DIFFICULT TAKE THE QUESTION OF AFFIRMATIVE ACTION IN ORDER TO BE POLITICALLY CORRECT AND TO QUALIFY FOR FEDERAL GRANTS THE MOST COMPETITIVE INSTITUTIONS EG HARVARD ACCEPT BLACK STUDENTS WHO WOULD DO VERY WELL AT SECONDRANK INSTITUTIONS EG THE UNIVERSITY OF TEXAS BUT WHO ARE ALMOST CERTAIN TO RANK NEAR THE BOTTOM OF THEIR HARVARD CLASSES TEXAS MEANWHILE WITH AN INSUFFICIENT POOL OF QUALIFIED BLACK STUDENTS REACHES FURTHER DOWN THE RANKS TO THOSE WHO MIGHT OTHERWISE SUCCEED AT EAST TEXAS STATE AND SO ON THE RESULT IS THAT GREAT NUMBERS OF BLACK STUDENTS FIND THEMSELVES AT A COMPETITIVE DISADVANTAGE BECAUSE THEY ARE MISMATCHED TO THE UNIVERSITIES THEY ARE ATTENDING INSTEAD OF BECOMING GRADUATES OF THE UNIVERSITY OF TEXAS THEY BECOME HARVARD DROPOUTS TOO BAD FOR THEM BUT THE ADMINISTRATORS OF ALL THESE INSTITUTIONS CAN CHEERFULLY PAT THEMSELVES ON THE BACK FOR HAVING PROVED NUMERICALLY THAT THEY PROVIDED EDUCATIONAL OPPORTUNITY TO MINORITY STUDENTS IT IS A CASE OF THE TRIUMPH OF IDEOLOGY OVER EDUCATION AND IT IS JUST ONE OF THE MANY INSTANCES OF SYSTEMATIZED MALPRACTICE IN HIGHER EDUCATION MR SOWELL INVESTIGATES ONE OF THE MORE SHOCKING CASES OF THAT MALPRACTICE IS THE TUITION PRICE FIXING THAT MANY LEADING COLLEGES ENGAGED IN IN COLLUSION WITH THE FEDERAL GOVERNMENT WHILE SANCTIMONIOUSLY REPEATING THAT TUITION COVERS ONLY A PORTION OF THE ACTUAL COST OF HIGHER EDUCATION COLLEGE ADMISSIONS DIRECTORS HAD BEEN MEETING FOR YEARS TO FIX THE PRICES OF TUITION AND TO EXCHANGE INFORMATION WITH EACH OTHER ABOUT APPLICANTS SO THAT NO COLLEGE IN THE CARTEL WOULD OFFER A FINANCIALAID PACKAGE BETTER THAN ANY OF ITS SISTER SCHOOLS OF COURSE MR SOWELL ALSO PAYS EXTENSIVE ATTENTION TO THE IDEOLOGICAL BIAS ON MAJOR CAMPUSES THE INJECTION OF RACIAL DIVISIVENESS THE SUPPRESSION OF FREE INQUIRY IN THE NAME OF POLITICAL CORRECTNESS AND THE MANIFOLD ABUSES OF THE TENURE SYSTEM HE IS ALSO CRITICAL OF BIGTIME COLLEGE ATHLETICS WHICH HE SEES AS A SUBSIDY TO PROFESSIONAL FOOTBALL AND BASKETBALL AT THE EXPENSE OF INSTITUTIONS AS WELL AS THE COLLEGE ATHLETES THEMSELVES THIS IS JUST ONE OF SEVERAL EXAMPLES THAT SHOW HOW MOST OF THE PROBLEMS IN OUR SCHOOLS AND COLLEGES ARE ROOTED IN THE STRUCTURE OF INCENTIVES BUILT INTO THE WAY THEY DO BUSINESS IF EDUCATION IS THE KEY TO AMERICA'S FUTURE MR SOWELL'S WARNINGS DESERVE CAREFUL ATTENTION MR SCHWARTZ IS DIRECTOR OF THE FREE CONGRESS FOUNDATION'S CENTER FOR SOCIAL POLICY 9302120100 930212 BUSINESS LEADERS IN BANGKOK JOIN TO FIGHT AIDS GROUP ACTS TO STEM SPREAD OF DISEASE IN THAILAND PREPARE FOR ITS IMPACT BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND TOP BUSINESS EXECUTIVES FEARFUL THAT AIDS IS PROPELLING THAILAND TOWARD ECONOMIC DISASTER ARE JOINING FORCES TO COMBAT THE SPREAD OF THE DISEASE THEIR EFFORT REPRESENTS A LATE AWAKENING FOR THE BUSINESS COMMUNITY HERE WHICH UNTIL RECENTLY LET THE GOVERNMENT LEAD THE CHARGE AGAINST AIDS NOW IT'S A RACE AGAINST THE CLOCK IT IS GOING TO AFFECT EVERY BUSINESS YOU EITHER PAY NOW OR YOU PAY LATER IN A MUCH BIGGER WAY SAYS JAMES P REINNOLDT REGIONAL GENERAL MANAGER OF NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC ST PAUL MINN THE IMPACT THAT AIDS WILL HAVE ON THE ORGANIZATION IS IMMEASURABLE LARGELY WITH THE AIM OF LESSENING THAT IMPACT MR REINNOLDT AND A DOZEN OTHER FOREIGN AND LOCAL EXECUTIVES HAVE IMPLEMENTED WITHIN THEIR BUSINESSES AIDSAWARENESS PROGRAMS AND DRAFTED POLICIES TO DEAL WITH WORKERS WHO CONTRACT HIV THE VIRUS THAT LEADS TO AIDS NOW THEY ARE SEEKING TO RECRUIT OTHER BUSINESSES THEY HAVE BEEN PROMPTED TO ACTION BY GOVERNMENT DATA SUGGESTING THAT THAILAND STANDS TO BE DECIMATED SOCIALLY AND ECONOMICALLY IF THE SPREAD OF HIV ESPECIALLY FAST HERE DUE TO THE COUNTRY'S HUGE UNBRIDLED SEX INDUSTRY ISN'T CHECKED EVEN THE MOST OPTIMISTIC SCENARIOS PROJECT THAT TWO MILLION THAIS OR 35 OF THE POPULATION WILL CARRY THE VIRUS BY THE YEAR 2000 EVEN THOUGH THE GOVERNMENT HAS OFFICIALLY REPORTED ONLY 620 AIDSRELATED DEATHS SO FAR ALREADY ABOUT 500000 THAIS ARE INFECTED GIVING THE COUNTRY ONE OF THE HIGHEST INFECTION RATES IN THE WORLD AS A COMPARISON THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA ESTIMATES THAT IN ALL THE US ROUGHLY ONE MILLION PEOPLE ARE INFECTED WITH HUMAN IMMUNODEFICIENCY VIRUS BASED ON CURRENT TRENDS EXPERTS SAY THAT BY THE YEAR 2000 AIDS COULD CLAIM AS MUCH AS 10 OF THE COUNTRY'S POPULATION WITH MANY OF THE PATIENTS IN THEIR PRIME WORKING YEARS LEAD TO A DOUBLING OF HEALTHCARE COSTS ANNUALLY AND SWALLOW AS MUCH AS 10 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT AIDS IS IN EVERY INDUSTRY AIDS HAS NO BOUNDARIES SAYS MECHAI VIRAVAIDYA A FORMER GOVERNMENT MINISTER CHARGED WITH RESPONSIBILITY FOR THE AIDS FIGHT WORRIES ABOUT SCARING OFF VISITORS HAVE MADE AIDS A PARTICULAR PROBLEM FOR THAILAND'S TOURIST INDUSTRY A MAJOR FOREIGNEXCHANGE EARNER THE COUNTRY'S REPUTATION AS A HIGH AIDS RISK HASN'T YET AFFECTED VISITOR ARRIVALS EXCEPT FROM JAPAN BUT THE AIDSAWARENESS BUSINESS GROUP WHICH INCLUDES HOTEL MANAGERS AND AN AIRLINE EXECUTIVE SAYS ONLY BETTER EDUCATION BOTH IN THAILAND AND ABROAD CAN ENSURE THAT TOURISTS KEEP COMING IT IS NOT THE PLACE THAT CAUSES AIDS IT IS THE ACT SAYS WILLIAM BLACK MANAGER OF THE REGENT HOTEL IN BANGKOK ED HUBENNETTE VICE PRESIDENT OF THAILAND'S ROYAL GARDEN RESORTS HOTEL CHAIN SAYS MANY OF THE CONCERNS HE HAD ABOUT AIDS WHILE HE WAS MANAGING A HOTEL IN NEW YORK IN THE 1980S ARE NOW THE CONCERNS OF BUSINESSES IN THAILAND WE WORRIED ABOUT WHETHER OTHER EMPLOYEES WOULD WORK WITH THEM WILL PEOPLE STOP EATING IN OUR RESTAURANTS HE SAYS NONE OF THAT HAPPENED AT ALL IT BECAME AN EMOTIONAL PROBLEM AS YOUNG PEOPLE DIED THE PROGRAM THAT MR HUBENNETTE HAS IMPLEMENTED AT ROYAL GARDEN PROVIDES EMPLOYEES WITH CONTINUING EDUCATION ON AIDS AND FREE CONDOMS HOWEVER AT THIS POINT THE COMPANY DOESN'T FEEL IT SHOULD PLAY A ROLE IN INFORMING HOTEL GUESTS ABOUT AIDS RISK I AM RUNNING A BUSINESS HERE HE SAYS GIVEN THE SPREAD OF HIV THUS FAR IN THAILAND MANY BUSINESSES FACE THE TASK AND HIGH COST OF CARING FOR EMPLOYEES ONCE THEY DEVELOP FULLBLOWN AIDS SAYS NORTHWEST'S MR REINNOLDT HE AND OTHER EMPLOYERS ARE PARTICULARLY WORRIED BECAUSE MANY OF THEIR WORKERS ARE IN THE HIGHRISK GROUP OF SEXUALLY ACTIVE ADULTS THESE EXECUTIVES NOTE THAT WITH ONLY 32000 HOSPITAL BEDS CURRENTLY AND THE NUMBER OF AIDS CASES EXPECTED TO REACH 50000 BY 1995 COMPETITION FOR HOSPITAL SPACE AND RELATED CARE WILL PUSH MEDICAL COSTS UP RAPIDLY AS PART OF LARGER GLOBAL AIDSRELATED PROGRAMS NORTHWEST AIRLINES AND SOME OTHER FOREIGN COMPANIES ALREADY FOLLOW A POLICY OF KEEPING AND PROVIDING MEDICAL INSURANCE FOR EMPLOYEES WHO CONTRACT HIV INDEED FOREIGN COMPANIES PERHAPS BECAUSE OF THEIR EXPERIENCE WITH AIDS IN NORTH AMERICA AND EUROPE HAVE TAKEN THE LEAD AMONG BUSINESSES HERE IN STARTING SUCH PROGRAMS HOWEVER SOME THAI COMPANIES HAVE TAKEN THE INITIATIVE TOO AT THE DUSIT THANI HOTEL GROUP WHICH HAS MORE THAN 5000 EMPLOYEES NATIONWIDE AIDS EDUCATION HAS BECOME A REQUIRED PART OF WORKERS' TRAINING IN ADDITION WE WILL TRY OUR BEST TO KEEP THE PERSON IN THE COMPANY UNTIL THE LAST STAGES OF THE DISEASE SAYS PUANGPAYOM YUVABOON TRAINING MANAGER ROBINSON DEPARTMENT STORE CO A PUBLICLY LISTED RETAIL CHAIN OFFERS EMPLOYEES AIDS EDUCATION AT QUARTERLY SEMINARS AND CONFIDENTIAL SCREENING SERVICES AS PART OF A NEW HEALTH PROGRAM STILL BUSINESS LONG SHIED AWAY FROM JOINING THE FIGHT AND MANY COMPANIES STILL RESIST RECOGNIZING THE THREAT THE DISEASE POSES FOR EXAMPLE WHEN THE THAI GOVERNMENT ASKED A LARGE US CONSUMERPRODUCTS MANUFACTURER ABOUT A YEAR AGO TO INCLUDE AIDS INFORMATION PAMPHLETS IN ITS PRODUCTS SOLD IN THAILAND THE COMPANY REFUSED SAYING THE ASSOCIATION WITH AIDS WOULD HARM ITS IMAGE 9302120099 930212 POLITICS & POLICY EMERGING CLINTON ECONOMIC PLAN CHARTS COURSE THAT COULD BE DESCRIBED AS REAGANISM IN REVERSE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWELVE YEARS AFTER RONALD REAGAN ASKED CONGRESS TO CUT TAXES AND DOMESTIC SPENDING AND TO SPEND MORE ON DEFENSE PRESIDENT CLINTON WILL LOOK INTO THE TELEVISION CAMERAS WEDNESDAY AND URGE THE OPPOSITE IN WHAT IS SHAPING UP AS THE MOST IMPORTANT PRESIDENTIAL SPEECH ON ECONOMIC POLICY SINCE MR REAGAN'S FEB 18 1981 ADDRESS MR CLINTON WILL TRY IN HIS WORDS TO DO TWO THINGS AT ONCE INCREASE INVESTMENT IN JOBS AND REDUCE THE DEFICIT OVER THE PAST THREE WEEKS HE HAS SPENT DOZENS OF HOURS SOMETIMES AS MANY AS SIX AT A STRETCH WITH HIS ECONOMIC ADVISERS MAKING DECISIONS ON HIS FIVEYEAR BUDGET PLAN AND NOT JUST THE BIG DECISIONS AIDES SAY HE HAS DISCUSSED BUDGET ITEMS AS SMALL AS 1 MILLION BUT HE HAS ALSO SET ASIDE THE GREEN EYESHADES TO PROMOTE THE PACKAGE IN ADDITION TO THIS WEEK'S TELEVISED TOWN MEETING HE BROUGHT IN GROUPS OF HOUSE DEMOCRATS AND BUSINESS LEADERS YESTERDAY TO GIVE THEM THE PITCH THE LAWMAKERS CAME AWAY WITH FEW NEW DETAILS BUT LOTS OF ENTHUSIASM DEMOCRATIC REP PATSY MINK OF HAWAII FLEW EIGHT HOURS TO MAKE THE MEETING REP JIM SLATTERY OF KANSAS SAID HE SENSED A GROWING WILLINGNESS OF MEMBERS OF CONGRESS TO LOOK BEYOND THE NARROW INTERESTS AND HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI SAID HE EXPECTS HIS COLLEAGUES AT THE AT END OF THE DAY TO GIVE THE BENEFIT OF THE DOUBT TO THE PRESIDENT THE BUILDING BLOCKS OF THE PRESIDENT'S ECONOMIC PLAN ALREADY ARE BECOMING CLEAR HIS SPEECH WILL CONCENTRATE ON THE BUDGET AND THE ECONOMY OTHER ASPECTS SUCH AS HIS EVOLVING PROGRAM TO EXPAND ACCESS TO HEALTH CARE WHILE CONTROLLING COSTS WILL BE ONLY LIGHTLY SKETCHED IT ISN'T CLEAR WHERE THE PRESIDENT HAS COME DOWN IN THE DEBATE BETWEEN HIS ECONOMIC ADVISERS WHO SEE A ONCEINAGENERATION CHANCE TO WIPE OUT THE DEFICIT AND POLITICAL AIDES WHO WORRY ABOUT THE CONSEQUENCES OF BREAKING CAMPAIGN PROMISES THE DEFICIT WILL NOT VANISH IN A FLASH MR CLINTON SAID WE WILL CUT IT AS MUCH AS WE REASONABLY CAN TRYING TO DRAW A SHARP CONTRAST BETWEEN THEMSELVES AND THEIR REPUBLICAN PREDECESSORS MR CLINTON'S AIDES SAY THEY WON'T INFLATE THEIR DEFICITREDUCTION PLAN WITH BOOKKEEPING GIMMICKS TO BOLSTER CREDIBILITY THE WHITE HOUSE IS BUILDING THE PLAN ON AN ECONOMIC FORECAST CLOSE TO THE CONGRESSIONAL BUDGET OFFICE'S THE CBO LESS OPTIMISTIC THAN MANY FORECASTERS SEES 28 GROWTH THIS YEAR AND 3 GROWTH NEXT YEAR CLEARLY A BIG TAX INCREASE IS ON THE WAY BUDGET DIRECTOR LEON PANETTA FAILED TO ACHIEVE HIS GOAL OF CUTTING 2 IN SPENDING FOR EVERY 1 IN TAX INCREASES ADMINISTRATION OFFICIALS SAY THE PLAN MAY END UP CLOSER TO A 5050 SPLIT FROM UPPERINCOME FAMILIES MR CLINTON WILL GET MORE THAN 10 BILLION A YEAR BY RAISING THE TOP STATUTORY MARGINAL INCOME TAX RATE FOR INDIVIDUALS TO 36 FROM 31 AND IMPOSING A SURTAX ON INCOMES ABOVE 1 MILLION HE'S ALSO LIKELY TO TAX 85 OF SOCIAL SECURITY BENEFITS PAID TO UPPERINCOME ELDERLY INSTEAD OF THE CURRENT 50 FROM EVERYONE ALIKE THE ADMINISTRATION IS WIDELY EXPECTED TO RAISE BILLIONS FROM A NEW ENERGY TAX EITHER A SALES TAX OR A LEVY BASED ON THE HEAT CONTENT OF FUELS AND TO SELL IT AS A WAY TO RAISE MONEY WHILE ALSO ENCOURAGING CONSERVATION THE BLOW TO THE POOR LIKELY WILL BE CUSHIONED BY ENLARGING THE TAX CREDIT FOR THE WORKING POOR AMONG OTHER THINGS AND FROM CORPORATIONS MR CLINTON WILL SQUEEZE ANOTHER 6 BILLION A YEAR BY RAISING THE TOP CORPORATE TAX RATE TO 36 FROM 34 FOR THAT BUSINESS CAN THANK LLOYD BENTSEN I HAVE BEEN PERSUADED BY MY TREASURY SECRETARY THAT IT IS UNWISE INDEED IMPOSSIBLE TO RAISE THE INDIVIDUAL INCOME TAX RATE UNLESS THERE IS A CORRESPONDING INCREASE IN THE CORPORATE TAX RATE THE PRESIDENT SAID YESTERDAY HE ADDED THAT HE INTENDS TO ALTER THE TAX LAW SO THAT IT NO LONGER SUBSIDIZES EXCESSIVE PAY FOR CORPORATE EXECUTIVES A MOVE THAT WON'T SAVE MUCH MONEY BUT HAS GREAT SIGNFICANCE TO THE AMERICAN WORKING PEOPLE ON THE SPENDING SIDE MR CLINTON HASN'T SHOWN MUCH OF HIS HAND EXCEPT TO SQUASH A PROPOSAL TO LIMIT THE ANNUAL COSTOFLIVING ADJUSTMENT TO SOCIAL SECURITY AND TO ORDER CUTS IN ADMINISTRATIVE SPENDING YOU WILL SEE THERE ARE A LOT OF OTHER VERY REAL CUTS IN FEDERAL SPENDING AND THEY WILL BE REAL DEFINABLE AND MEASURABLE NOT IMAGINARY THE PRESIDENT SAID ONE LIKELY PROPOSAL IS TO REDUCE SUBSIDIES GRANTED TO THOSE WHO GRAZE CATTLE ON OR MINE FEDERAL LANDS MR CLINTON IS CUTTING THE DEFENSE BUDGET MORE THAN PRESIDENT BUSH PLANNED SQUEEZING OUT ROUGHLY 8 BILLION IN FISCAL 1994 WHICH BEGINS OCT 1 AND MORE IN LATER YEARS MR CLINTON AGAIN PROMISED TO USE EVERY DOLLAR SAVED FROM DEFENSE RESEARCH AND DEVELOPMENT FOR CIVILIAN RESEARCH AND DEVELOPMENT ALTHOUGH DOMESTIC SPENDING ISN'T LIKELY TO CONTRIBUTE MUCH TO DEFICIT REDUCTION MR CLINTON HAS TO CUT SPENDING IN SOME DOMESTIC AGENCIES TO MAKE ROOM FOR INCREASES IN OTHERS SUCH AS PREVENTIVE HEALTH CARE WHILE MR CLINTON IS EXPECTED TO PROPOSE INCREASES FOR SOLAR AND RENEWABLE ENERGY PROGRAMS THE COSTLY SPACE STATION IS ON THE CHOPPING BLOCK AS IS THE SUPERCONDUCTING SUPERCOLLIDER THE MASSIVE ATOM SMASHER WHICH RECEIVED 517 MILLION THIS YEAR WAS SCHEDULED TO GET 859 MILLION IN THE NEW FISCAL YEAR BEGINNING OCT 1 BUT ESTIMATES GIVEN TO THE ENERGY DEPARTMENT INDICATE THE INCREASE WILL ONLY BE ABOUT A THIRD OF THAT PROMISED BY THE BUSH ADMINISTRATION THE PRESIDENT IS INSISTING THAT HIS AIDES LIMIT THE GROWTH OF FEDERAL HEALTHCARE SPENDING OVER THE NEXT FEW YEARS ONE BIG QUESTION IS WHETHER HE WILL USE SUCH SAVINGS TO FURTHER REDUCE THE DEFICIT OR IF HE WILL INSTEAD USE THE MONEY TO HELP PAY FOR THE HEALTHCARE INITIATIVE MR CLINTON'S AIDES ARE LOOKING AT A ONEYEAR FREEZE IN THE RATES THE GOVERNMENT PAYS DOCTORS AND HOSPITALS BUT THE LATEST BETTING IS THAT WON'T BE PART OF WEDNESDAY'S DEFICITREDUCTION PLAN SIMILARLY THE WHITE HOUSE APPEARS TO HAVE TOLD ITS DEFICITCUTTERS THAT THEY CAN'T RAISE ALCOHOL AND TOBACCO TAXES THOSE TAXES ARE POTENTIAL SOURCES OF REVENUE FOR THE HEALTH PLAN THE PRESIDENT'S FIRST STEP TOWARDS STIMULATING AN ECONOMY THAT STILL ISN'T CREATING JOBS WILL BE TO ASK CONGRESS TO INCREASE SPENDING BY ABOUT 16 BILLION IN THE CURRENT FISCAL YEAR SOME OF THIS WILL BE CONVENTIONAL ECONOMIC STIMULUS INCLUDING JOBLESS BENEFITS PUBLIC WORKS AND GRANTS TO LOCAL AND STATE GOVERNMENTS BUT IT ALSO IS EXPECTED TO INCLUDE 4 MILLION TO HIRE 160 MEAT AND POULTRY INSPECTORS AND FUNDING TO IMMUNIZE CHILDREN AND CARE FOR PEOPLE WITH AIDS AND TUBERCULOSIS ALTHOUGH THE WHITE HOUSE DOESN'T EXPECT QUICK CONGRESSONAL ACTION ON THE REST OF THE PLAN IT IS PLANNING TO MAKE THE INVESTMENT TAX CREDIT RETROACTIVE SO THAT IT COVERS PURCHASES OF EQUIPMENT MADE SINCE DECEMBER TO FURTHER ENCOURAGE BUSINESS INVESTMENT MR CLINTON WILL SEEK THE EXTENSION OF THE RESEARCHANDDEVELOPMENT TAX CREDIT WHICH EXPIRED LAST SUMMER AND HAS HINTED THAT HE MAY PROPOSE TAX BREAKS FOR COMPANIES THAT INVEST IN INNER CITIES BUT WHEN MR CLINTON TALKS INVESTMENT HE USUALLY MEANS GOVERNMENT SPENDING THE LABOR DEPARTMENT FOR INSTANCE EXPECTS MORE MONEY TO TRAIN DISPLACED WORKERS AND LOWINCOME YOUTH COMMERCE SECRETARY RON BROWN INDICATED THAT MR CLINTON WILL INCREASE SPENDING FOR HIGHSPEED COMMUNICATIONS NETWORKS BROADENING A PROJECT THAT PRESIDENT BUSH BEGAN TO LINK SUPERCOMPUTER CENTERS TO SERVE SCHOOLS LIBRARIES AND HOSPITALS I WANT TO BE REMEMBERED AS THE SECRETARY OF COMMERCE WHO BUILT THE TELECOMMUNICATIONS SUPERHIGHWAY MR BROWN SAID DAVID ROGERS CONTRIBUTED TO THIS ARTICLE HERE'S A SUMMARY OF WHAT'S KNOWN SO FAR ABOUT PRESIDENT CLINTON'S ECONOMIC PACKAGE AN INCREASE IN THE TOP STATUTORY MARGINAL TAX RATE FOR INDIVIDUALS TO 36 FROM THE CURRENT 31 A SURTAX ON INCOMES ABOVE 1 MILLION AND AN INCREASE IN THE PERSONAL ALTERNATIVE TAX RATE FROM THE CURRENT 24 AN INCREASE IN THE TOP CORPORATE INCOMETAX RATE TO 36 FROM THE CURRENT ALTERNATIVE MINIMUM TAX REINSTATEMENT OF THE INVESTMENT TAX CREDIT POSSIBLY TEMPORARILY OR LIMITED TO SMALL COMPANIES AND TAILORED TO REWARD PURCHASES OF PLANT AND EQUIPMENT BEYOND THOSE THAT WOULD HAVE BEEN MADE ANYWAY A REDUCTION IN THE CAPITALGAINS TAX FOR INVESTMENTS IN CERTAIN SMALL COMPANIES HELD FOR FIVE YEARS OR MORE EXTENSION OF THE RESEARCH AND DEVELOPMENT TAX CREDIT AND THE TAX CREDIT FOR INVESTORS IN LOWINCOME HOUSING INCENTIVES TO COMPANIES TO INVEST IN INNER CITIES A PROBABLE TAX ON 85 OF THE SOCIAL SECURITY BENEFITS PAID TO UPPERINCOME ELDERLY INSTEAD OF THE CURRENT 50 A PROBABLE NEW ENERGY TAX EITHER A SALES TAX OR A LEVY BASED ON THE HEAT CONTENT OF FUELS AN INCREASE IN FEDERAL SPENDING OF ABOUT 16 BILLION THIS YEAR FOR A PACKAGE OF PROGRAMS INCLUDING EXTENDED JOBLESS BENEFITS GRANTS TO CITIES AND TOWNS STEPPEDUP FUNDING FOR IMMUNIZING CHILDREN TREATING TUBERCULOSIS AND AIDS AND FOR GOVERNMENT INFRASTRUCTURE PROJECTS INCREASED SPENDING ON HEAD START EDUCATION TRAINING AND PREVENTIVE HEALTH CARE SHIFTING SOME FEDERAL SCIENCE SPENDING AWAY FROM SOME BIGTICKET PROJECTS POSSIBLY INCLUDING THE SPACE STATION AND THE SUPERCOLLIDER AND TOWARD ADVANCED COMPUTING FIBER OPTICS AND MANUFACTURING TECHNOLOGY TRIMMING THE GROWTH IN SPENDING FOR SOME GOVERNMENT BENEFIT PROGRAMS WITHOUT TOUCHING COSTOFLIVING ADJUSTMENTS FOR SOCIAL SECURITY AN ACROSSTHEBOARD CUT IN ADMINISTRATIVE COSTS OF 3 IN 1994 AND 14 OVER FOUR YEARS A CUT IN FISCAL 1994 DEFENSE SPENDING PF ROUGHLY 8 BILLION BELOW THE BUSH ADMINISTRATION'S PLAN WITH DEEPER CUTS IN LATER YEARS A FURTHER SHIFT IN GOVERNMENT BORROWING AWAY FROM LONGTERM TO SHORTTERM DEBT TO SAVE MONEY 9302120098 930212 CITIBANK DEVELOPS AN INDEX TO TRACK MARKET FOR LOANS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITIBANK HAS DEVELOPED THE FIRST INDEX OF CORPORATE LOANS THAT WILL ALLOW BANKS AS WELL AS INSTITUTIONAL INVESTORS TO GAUGE THE PERFORMANCE OF BANK LOANS AS AN INVESTMENT VEHICLE AS BANKS INCREASINGLY RESELL THEIR BIG LOANS MUCH AS WALL STREET SELLS BONDS CITIBANK AND OTHERS ARE LOOKING TO NEW INVESTORS TO PURCHASE LOANS THE WAY INVESTORS BUY STOCKS AND BONDS THE BANK HOPES THE INDEX CAN HELP BROADEN THE SECONDARY MARKET FOR BANK LOANS IT'S A SIGNIFICANT ASSET CLASS UNKNOWN TO THE PUBLIC SAID RODNEY BALLEK MANAGING DIRECTOR AT CITIBANK CITICORP'S LEAD BANK LAST YEAR THE INDEX WHICH COMPRISES 1000 CORPORATE LOANS OF COMPANIES WITH CREDIT RATINGS BETWEEN TRIPLEA AND SINGLEB EARNED 611 THAT COMPARES WITH AN 87 RETURN FOR A MERRILL LYNCH & CO INDEX OF CORPORATE BONDS WITH SIMILAR RATINGS AND MATURITIES THE DIFFERENCE MOST BANK LOANS DO NOT CARRY FIXED COUPONS BUT RATHER FLOAT OFF A BENCHMARK LENDING RATE SUCH AS THE LONDON INTERBANK OFFERED RATE INVESTORS DEMAND A HIGHER RETURN FOR FIXEDRATED OBLIGATIONS THUS BANKS LOANS ARE A DEFENSIVE INVESTMENT THAT WOULD BE SIMILAR TO A FLOATINGRATE BOND BUT LOANS ARE SENIOR TO BONDS ON A COMPANY'S BALANCE SHEET AND ARE OFTEN SECURED BY HARD ASSETS IN BANKRUPTCIES LOANS CONSISTENTLY RETURN MORE OF THEIR ORIGINAL PRINCIPAL THAN BONDS DO CITIBANK BELIEVES LOANS ARE AN ATTRACTIVE INVESTMENT FOR INVESTORS CONCERNED ABOUT RISING INTEREST RATES AS RATES RISE A LOAN'S COUPON IS CONTINUALLY RESET OFF THE BENCHMARK RATE UNLIKE WITH DEBT SECURITIES WHICH LOSE VALUE AS YIELDS RISE THE BAD NEWS IS THAT IN A FALLING INTEREST RATE ENVIRONMENT LOANS CANNOT TRADE ABOVE THEIR ORIGINAL FACE VALUE UNLIKE DEBT SECURITIES THE EARNINGS INCLUDE COUPON INTEREST PLUS ANY FEES THAT A LOAN HOLDER WOULD RECEIVE MANY HOLDERS OF REVOLVINGCREDIT LOANS EARN ANNUAL FEES FOR THEIR COMMITMENTS EVEN THOUGH THE CREDIT MIGHT NOT BE USED MOST LOANS ARE NOT TRADED IN THE NASCENT SECONDARY MARKET FOR BANK LOANS AND IN EFFECT ARE CARRIED AT FACE VALUE FOR LOANS THAT HAVE SECONDARYMARKET PRICES THE CHANGES IN PRICE OR YIELD ARE REFLECTED IN THE RETURNS LIKE BOND INDEXES THE CITIBANK LOAN INDEX IS BROKEN DOWN TO INCLUDE THREE RATINGS CLASSES AND SIX INDUSTRY SECTORS SUCH AS FINANCIAL UTILITY AND INDUSTRIAL CONCERNS THE INDEX EXCLUDES REAL ESTATE LOANS MIDDLEMARKET LOANS AND OTHER LOANS NOT RATED BY THE MAJOR RATING SERVICES 9302120097 930212 EC ANXIETIES EASE OVER JAPANESE AUTOS PRODUCED IN EUROPE BRUSSELS AS THE SQUABBLE CONTINUES OVER HOW MANY CARS JAPAN IS TO BE ALLOWED TO EXPORT THIS YEAR TO THE EUROPEAN COMMUNITY RENEWED WORRIES OVER JAPANESE TRANSPLANT PRODUCTION APPARENTLY HAVE BEEN EASED EC COMMISSION OFFICIALS SAID JAPANESE TRADE OFFICIALS HAVE ASSURED THEM THAT THE NUMBER OF VEHICLES PRODUCED IN JAPANESE FACTORIES ON EC SOIL WOULD NOT EXCEED EARLIER ASSUMPTIONS UNDER A JULY 1991 AGREEMENT BETWEEN THE EC AND JAPAN RESTRICTIONS ON DIRECT IMPORTS OF JAPANESE CARS DURING A SEVENYEAR TRANSITION PERIOD ARE BASED ON THE COMMUNITY'S UNDERSTANDING THAT TRANSPLANT PRODUCTION WOULD NOT EXCEED 12 MILLION IN 1999 THE ISSUE CAME UP THIS MONTH WHEN HELMUT WERNER PRESIDENT OF THE ASSOCIATION OF EUROPEAN AUTOMOBILE MANUFACTURERS AND DESIGNATED CHAIRMAN OF DAIMLERBENZ AG'S MERCEDESBENZ UNIT SAID HE WAS CONCERNED ABOUT THE RATE OF JAPANESE INVESTMENT IN EC PLANTS PARTICULARLY IN BRITAIN THE COMMISSION INTERPRETED THOSE REMARKS AS FEARS BY EC AUTO MAKERS THAT PRODUCTION OF JAPANESE TRANSPLANTS WOULD EXCEED 12 MILLION AT THE END OF THE DECADE BUT DURING DISCUSSIONS IN THE PAST WEEK THE JAPANESE REASSURED US THAT THIS WOULD NOT BE THE CASE SAID AN AIDE TO MARTIN BANGEMANN THE EC INDUSTRY COMMISSIONER JAPANESE OFFICIALS HE SAID INDICATED THAT ALTHOUGH INVESTMENT IN BRITISH PLANTS WAS EXPECTED TO INCREASE IN THE NEXT FEW YEARS THE PACE OF INVESTMENT WOULD LEVEL OFF IN 1996 OR 1997 SO EARLIER ASSUMPTIONS ON THE TOTAL NUMBER OF JAPANESE VEHICLES PRODUCED IN THE COMMUNITY IN 1999 WOULD REMAIN INTACT AS A RESULT SAID THE AIDE TO MR BANGEMANN THERE IS NO NEED ON THE BASIS OF TRANSPLANT PRODUCTION FOR THE COMMUNITY TO SEEK RENEGOTIATION OF THE JULY 1991 AGREEMENT UNDER THAT ACCORD DIRECT IMPORTS CAN TOTAL 123 MILLION IN 1999 WHICH COUPLED WITH THE TRANSPLANTS WOULD BRING THE TOTAL YEARLY NUMBER OF JAPANESE VEHICLES TO SLIGHTLY MORE THAN 24 MILLION UNDER THE COMMISSION'S CALCULATIONS THE AGREEMENT CALLS FOR A MONITORING PROCESS IN WHICH OFFICIALS DISCUSS THE YEARLY DEMAND IN THE COMMUNITY FOR NEW CARS TALKS THIS WEEK CONCERNING 1993 DEMAND ENDED INCONCLUSIVELY AND WILL RESUME IN TOKYO NEXT MONTH 9302120096 930212 THE AMERICAS THE TRIALS AND TRIBULATIONS OF CUBA'S MANAGERS BY ARTURO VILLAR CUBA IS A COUNTRY FIGHTING AN INTERNAL WAR THE BATTLEFIELD IS THE ECONOMY THE STRUGGLE IS ON THREE FRONTS AND THE COMBATANTS ARE FOREIGN INVESTORS BUREAUCRATS AND MANAGERS OF STATEOPERATED ENTERPRISES FOREIGN INVESTORS HAVE GONE TO SOCIALIST CUBA LURED BY UNIQUE CAPITALISTIC OPPORTUNITIES AND THE CHANCE TO POSITION THEMSELVES AHEAD OF US COMPANIES WHICH ARE PROHIBITED BY A 32YEAROLD EMBARGO FROM PARTICIPATING IN THE CUBAN ECONOMY THE CUBAN GOVERNMENT THROUGH THE APPLICATION AND SOMETIMES LOOSE INTERPRETATION OF A 1982 LAW REGULATING JOINT VENTURES WITH FOREIGN CAPITAL HAS GIVEN INVESTORS THE LICENSE TO DEAL EXCLUSIVELY IN HARD CURRENCY INTRODUCE MODERN MANAGEMENT TECHNIQUES INCLUDING INCENTIVES FIRE WORKERS AT WILL REPATRIATE PROFITS FREELY AND AVOID ALL BUT SOCIAL SECURITY TAXES ACCORDING TO OFFICIAL STATEMENTS 108 MAJOR JOINT VENTURE COMPANIES HAVE BEEN SET UP IN CUBA SINCE 1989 UP FROM THE 76 ANNOUNCED LAST NOVEMBER BY CARLOS LAGE THE NEW ECONOMIC CZAR OF THE ISLAND THE SAME OFFICIALS ADMIT TO SOME 200 MINOR VENTURES MAINLY IN TOURISM SUCH AS SAILBOAT CONCESSIONS THE BUREAUCRATS ARE AMBIVALENT TOWARD THIS NEW CAPITALISTICORIENTED PHENOMENON SOME SEE IT AS THE WAVE OF THE FUTURE AND ARE TRYING TO LEARN FROM THE NEW EXPERIENCES MOST HOWEVER STILL DON'T KNOW HOW TO DEAL WITH IT AND CONSTANTLY PLACE STUMBLING BLOCKS IN THE WAY OF ITS DEVELOPMENT AND PROGRESS FINALLY THERE ARE THE MANAGERS OF STATECONTROLLED ENTERPRISES TO MOST OF THEM THE POCKETS OF EFFICIENCY CREATED BY FOREIGN INVESTMENT ARE A WELCOME ADDITION TO THE ECONOMIC LANDSCAPE IN MY SIX TRIPS TO CUBA DURING THE PAST 17 MONTHS I HAVE HAD THE OPPORTUNITY TO TALK TO DOZENS OF THESE MANAGERS NOT A SINGLE ONE HAS FAILED TO PRAISE THE JOINT VENTURES AND EVERY SINGLE ONE HAS CLAIMED A DESIRE TO JOIN OR AT LEAST EMULATE THEM ON THE OTHER HAND FOREIGN INVESTORS I HAVE INTERVIEWED IN CUBA COMPLAIN OF THEIR DIFFICULTIES WITH BUREAUCRATS IN CUTTING THROUGH UNNECESSARY RED TAPE FOR THE RESOURCES AND ADEQUATE PERSONNEL THEIR OPERATIONS REQUIRE THEY FIND IT DIFFICULT TO NEGOTIATE MINEFIELDS OF COMPETITION BETWEEN MINISTRIES AND OTHER ECONOMIC POWER BROKERS WE GO TO MINISTRIES AND OFFER THEM IDEAS THE BUREAUCRATS SEEM RECEPTIVE BUT THEN THEY TRY TO MAKE THEM THEIR OWN OR SUDDENLY OFFER RESISTANCE SAID A SPANISH INVESTOR IN THREE DIFFERENT JOINT VENTURE OPERATIONS THE PROBLEM HE CONTINUED IS THAT SINCE 1991 THERE IS NO PLANNING NO CLEAR DIRECTION FROM THE TOP THESE BUREAUCRATS ARE LEFT TO IMPROVISE AND THEY HAVE NEVER LEARNED HOW TO DO THIS MIDLEVEL MANAGERS ALSO SUFFER THE AMBIVALENCE OF THE BUREAUCRACY THOUGH SOME EXPLAIN IT DIFFERENTLY FOR 30 YEARS WE HAVE WORKED IN A HIGHLY CENTRALIZED ECONOMIC SYSTEM AND NOW WE HAVE BEEN INSTRUCTED TO BE CREATIVE IN FINDING THE RESOURCES WE NEED SAID THE FORMER MANAGER OF A MARBLE FACTORY WHO CLAIMS TO HAVE BEEN REMOVED BECAUSE OF HIS ENTREPRENEURIAL SPIRIT BUT THE MINISTRIES DON'T HAVE ANY RESOURCES TO ALLOCATE SO THE OFFICIALS SEE THEIR POWER ERODE AND BECOME JEALOUS IF YOU SUCCEED WITHOUT THEM TO MANY OF THESE MANAGERS THE DOUBLE CHALLENGE IS UNSURMOUNTABLE HOWEVER TO THOSE WILLING TO TAKE THE RISK THERE ARE TWO MODELS WITHIN CUBA THEY CAN EMULATE THE JOINT VENTURE COMPANIES CREATED BY FOREIGN INVESTMENTS OR THE MILITARY ENTERPRISES THAT SINCE THE EARLY 1980S HAVE INTRODUCED CAPITALISTMODELED INCENTIVES TWO ISLANDS OF EFFICIENCY IN A SYSTEM MARKED BY WASTE AND MISMANAGEMENT ONLY THREE YEARS AGO WHEN THE GOVERNMENT OPENED DISCUSSIONS AMONG PARTY MEMBERS IN PREPARATION FOR THE FOURTH COMMUNIST PARTY CONGRESS PARTICIPANTS REPORTED A GROUNDSWELL OF OPINIONS FAVORING THE REFORM OF THE CENTRAL PLANNING SYSTEM BEFORE THE CONGRESS DISCUSSIONS THE ONLY MODEL WAS THE MILITARY SAYS A RESEARCHER AT ONE OF THE MANY NEW CENTERS FOR ECONOMIC STUDIES ON THE ISLAND THEY RAN EFFICIENT INDUSTRIES BUT WE WEREN'T SURE THEY REPRESENTED A TRUE DEPARTURE FROM THE RIGID PATTERNS OF THE PAST SINCE THEN HOWEVER THE GOVERNMENT HAS OPENED UP MOST AREAS OF THE ECONOMY TO FOREIGN CAPITAL IN JOINT VENTURES THESE COMPANIES RUN FROM A THEORETICALLY MAXIMUM FIFTYFIFTY SPLIT TO ANY COMBINATION OF PARTICIPATION THAT WILL GUARANTEE HARDCURRENCY REVENUE AND ACCORDING TO BOTH BOOSTERS AND DETRACTORS THIS IS THE MODEL THAT HAS HAD THE GREATEST IMPACT ON THE MIDLEVEL MANAGEMENT CLASS IN CUBA THE DEMAND TO JOIN THE RANKS OF THE JOINT VENTURES IS SUCH THAT THE CUBAN COMMUNIST PARTY HAS LAID DOWN A FIVEYEAR LIMIT FOR MILITANTS TO WORK IN THESE CAPITALISTIC ENCLAVES SO THAT MORE CAN HAVE A CHANCE TO ENJOY THEIR BENEFITS EVEN IN THE TOURIST AREA WHICH PROVOKES A CERTAIN TYPE OF RESENTMENT AMONG CUBAN CITIZENS THE DESIRE TO PARTICIPATE HAS CREATED A SERIOUS CHALLENGE TO THE RETENTION OF ALL KINDS OF PROFESSIONALS INCLUDING ENGINEERS AND MEDICAL DOCTORS WHO WOULD MUCH RATHER WORK AS WAITERS IN FOREIGNRUN HOTELS AND RESTAURANTS AMONG THE MANAGERIAL CLASS IT SEEMS ONLY HARDLINE REVOLUTIONARIES AND INCOMPETENTS ARE AGAINST FOREIGN INVESTMENT THE FORMER ON IDEOLOGICAL GROUNDS THE LATTER FOR SELFPROTECTION BUT TO MOST MANAGERS FOREIGN INVESTORS AND THEIR JOINT VENTURES ARE THE ONLY VISIBLE AGENTS OF CHANGE IN CUBA TODAY THEY POINT TO THE CONTRADICTIONS POSED BY THEIR MODERN MANAGEMENT TECHNIQUES AND INCENTIVES AND THE QUALITY OF THE GOODS AND SERVICES THEY OFFER TO THEM THIS IS THE WAVE OF THE FUTURE RESURRECTION OF CAPITALISM IN CUBA IS INEVITABLE SAYS AN ECONOMIST WHO WORKS CLOSELY WITH STATEOWNED ENTERPRISES EXPLORING NEW SURVIVAL METHODS WE ARE SIMPLY LOOKING FOR WAYS TO DO IT WHILE KEEPING THE SOCIAL COST DOWN WHEN QUESTIONED ABOUT THE OFFICIAL HARDLINE DISCOURSE THAT CONTINUES TO DEFEND SOCIALISM AS THE ONLY ALTERNATIVE FOR CUBA THE ANSWER COMES FROM A VICE MINISTER WHO IS TRYING TO JOIN A JOINT VENTURE MANUFACTURING GROUP THAT'S FIDEL'S ROLE HE IS CIRCLING THE WAGONS WHILE WE LEARN THE TRICKS OF THE TRADE TO FACE THE YANKEE INVASION AND THE SOLDIERS FROM MIAMI THE SOLDIERS OF COURSE ARE THE HUNDREDS OF CUBANAMERICAN ENTREPRENEURS WHO WOULD COME TO CUBA IN THE EVENT OF AN OPEN ECONOMY AND A MORE OPEN SOCIETY AND THE INVASION IS THE MILLIONS OF DOLLARS IN GOODS SERVICES AND INVESTMENTS THAT US CORPORATIONS LARGE AND SMALL WOULD BRING TO CUBA NO THREAT OF A MILITARY LANDING FOR THESE MANAGERS MUCH LESS TODAY WHEN THEY ARE READY TO BELIEVE A NEW ADMINISTRATION IN WASHINGTON WILL LOOK AT USCUBAN RELATIONS WITH AN OPEN MIND WE ARE FIGHTING OUR OWN WAR HERE BUT THERE IS NO BLOODSHED A FORMER VICE MINISTER WHO QUIT TO RUN MANAGEMENT TRAINING PROGRAMS TOLD ME IF THE MANAGERS WIN WITH THE HELP OF THE FOREIGN INVESTORS IT MAY SIGNAL THE PEACEFUL TRANSFORMATION OF OUR ENTIRE SOCIETYSHIRT MR VILLAR PUBLISHER OF THE MIAMIBASED LATIN AMERICAN BUSINESS REPORTS TRAVELS FREQUENTLY TO CUBA 9302120095 930212 LOVE MAKES THE WORLD GO ROUND AND THUS SOME FOLKS ACT DIZZY BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL ANOTHER VALENTINE'S DAY AND YOU'RE OUT OF ROMANTIC IDEAS TRY EATING WORMS CUPID STILL HASN'T STRUCK GO TO THE COMMUNITY POOL AND TEAR OFF YOUR BATHING SUIT THESE ARE BUT TWO OF 200 POSSIBILITIES PRESENTED BY READERS OF THE CLEVELAND PLAIN DEALER FOR THE PAPER'S VALENTINE'S DAY CONTEST WHAT I'VE DONE FOR LOVE THE WINNER WHOSE TALE WILL BE PUBLISHED ON SUNDAY GETS AN EVENING FOR TWO AT A DOWNTOWN CLEVELAND HOTEL NO CLEVELAND BASHERS RUNNERSUP WON'T GET TWO NIGHTS AT A DOWNTOWN CLEVELAND HOTEL FINALISTS INCLUDE THE CLEVELAND HEIGHTS MAN WHO FLEW TO NEPAL TO VISIT HIS GIRLFRIEND WHO WAS DOING HIGHALTITUDE STUDIES HE SENT A PORTER ARMED WITH CHOCOLATES TO RETRIEVE HER FROM THE MOUNTAIN BUT SHE HAD PULLED A MUSCLE AND COULDN'T MAKE IT DOWN TO SEE HIM THERE'S THE FELLOW FROM BRECKSVILLE WHO GAVE UP BOWLING CHOLESTEROL AND LEISURE SUITS FOR LOVE A CLEVELAND WOMAN THOUGHT SHE WOULD SURPRISE HER BOYFRIEND BY DRIVING TO SEE HIM IN DETROIT HE HAD THE SAME IDEA AND DROVE TO CLEVELAND A WARRENSVILLE HEIGHTS GENTLEMAN BRAVED SUBZERO TEMPERATURES AND TOOK THREE BUSES TO THREE RESTAURANTS BEFORE FINDING THE REUBEN HIS GIRLFRIEND CRAVED ONE CLEVELANDER BELIEVES SHE GAVE HER ALL FOR LOVE WHEN SHE WENT TO A CROWDED WAVE POOL WITH HER HUSBAND AND HER SUIT GOT RIPPED OFF ON A GRATING AND OF COURSE THERE'S THE WOMAN FROM SOUTH EUCLID WHO ATE A WORM ON A DARE FROM HER BOYFRIEND THEY'VE SINCE MARRIED NOT EVERYONE'S LOVE LIFE IS THE STUFF OF HEADLINES YOU'D BE SURPRISED HOW MANY SNOWSTORMS THERE WERE SAYS MICHAEL A BENNETT THE EDITOR OF THE PAPER'S LIVING SECTION WE RULED OUT THE SWEET ONES HE SAYS THEY'RE NOT AS INTERESTING SACCHARINE ENTRIES PLAGUED 1992'S CONTEST TRUE ROMANCE IT WAS SICKENING MR BENNETT SAYS THE WINNER MET HER MAN BACKPACKING IN CZECHOSLOVAKIA HE LATER PROPOSED IN A LETTER WRITTEN THROUGH A TRANSLATOR SHE DEMURRED THE 1991 COMPETITION AMERICA'S FUNNIEST LOVE STORIES UNVEILED A BRIDE WHO STRUCK A POLICE CAR ON HER WAY TO CHURCH AND A FELLOW WHO ACCIDENTALLY SHOT HIS FUTURE BRIDE ON THEIR FIRST DATE WHILE SHOWING OFF HIS GUN COLLECTION THE WINNER WAS THE WOMAN WHOSE BALDING HUSBAND ON THEIR HONEYMOON BORROWED WHAT HE TOOK TO BE HER HAIR MOUSSE TOO LATE HE DISCOVERED IT WAS HER HAIR REMOVER 9302120094 930212 ENTERPRISE SMALL BUSINESSES KEEP WORKERS BY SELLING THEM A STAKE HOME HEALTHCARE IS ONE FIELD WHERE PRIDE OF OWNERSHIP LIMITS TURNOVER BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL SMALL COMPANIES PLAGUED BY HIGH EMPLOYEE TURNOVER MIGHT TAKE A LOOK AT HOW COMMUNITY HEALTH CARE ASSOCIATES KEEPS ITS STAFF LOYAL THE NEW YORK HOME HEALTHCARE COMPANY SELLS THEM A VOTING STAKE IN THE COMPANY FOR 1000 AND PAYS A 30 ANNUAL DIVIDEND ON THEIR INVESTMENT THE METHOD PAYS OFF COMMUNITY HEALTH SAYS ITS ANNUAL TURNOVER RATE IS 15 WHICH HOMECARE SPECIALISTS SAY IS LOWER THAN SOME OF THE LARGER CONCERNS IN THE INDUSTRY THE COMPANY'S WORKERS SAY THE FINANCIAL REWARDS OF OWNERSHIP MOTIVATE THEM NOT ONLY TO STAY PUT BUT TO BECOME MORE INVOLVED WITH THEIR WORK WORKER OWNERSHIP MEANS HAVING A SAY IN DECISIONS THAT ARE BEING MADE AND AS THE COMPANY GROWS YOU GROW SAYS JOANN POUE A COMMUNITY HEALTH EMPLOYEE IT GOES BEYOND JUST GETTING YOUR PROFIT SHARING AT THE END OF THE YEAR COMMUNITY HEALTH ISN'T ALONE SMALL HOME HEALTHCARE COMPANIES ARE SPROUTING UP ALL OVER THE US TO MEET INCREASING DEMAND FOR THEIR SERVICES FROM AN AGING POPULATION A NUMBER HAVE DECIDED THAT EMPLOYEEOWNERSHIP PLANS SUCH AS COMMUNITY HEALTH'S GIVE THEM A COMPETITIVE EDGE OVER LARGER RIVALS THE REASON OWNERSHIP GIVES A SENSE OF PRIDE TO THE MOSTLY LOWINCOME WORKERS WHO BATHE FEED SUPERVISE AND DO THE HOUSEWORK FOR ELDERLY CLIENTS I NEEDED SOMEWHERE WHERE I COULD EXCEL AND EARN A COLLEGE DEGREE AND COMMUNITY HEALTH HAS DONE THAT SAYS ZIANNA BENNETT A CASE MANAGER THERE ARE CERTAIN THINGS IN THIS COMPANY THAT MAKE YOU WORK SO MUCH HARDER FOR SUCCESS AND RECOGNITION FOUNDED IN 1985 COMMUNITY HEALTH IS BASED IN NEW YORK CITY AND HAS 285 EMPLOYEES THE COMPANY SAYS 1992 REVENUE WAS 4 MILLION UP FROM 220000 SEVEN YEARS AGO THE FORPROFIT BUSINESS SAYS IT BROKE EVEN IN 1988 AND HAS BEEN PROFITABLE SINCE THEN COMMUNITY HEALTH WAS FINANCED BY SEVERAL NONPROFIT GROUPS THAT RECEIVED NONVOTING SHARES BUT DID NOT REQUIRE THE COMPANY TO PAY BACK THAT ORIGINAL STAKE AFTER THE COMPANY WENT INTO THE BLACK EMPLOYEES WERE ALLOWED TO PURCHASE ONE VOTING SHARE WITH THE 1000 PRICE DEDUCTED IN INSTALLMENTS FROM THEIR WEEKLY PAYCHECKS THEY NOW OWN THE COMPANY WE HIRED BASED ON SKILL AND THEN PHASED IN WORKER MANAGEMENT AND OWNERSHIP SAYS RICK SURPIN COMMUNITY HEALTH'S EXECUTIVE DIRECTOR WHOSE PERFORMANCE IS SUBJECT TO EMPLOYEE REVIEWS WHEN YOU HAVE A GOOD MIX OF TRADITIONAL BUSINESS DEVELOPMENT AND A SENSE OF COMMUNITY IT WORKS VERY WELL BUT IT'S DIFFICULT TO PULL OFF ABOUT 65 OF THE WORKERS NOW OWN STOCK SHARE OWNERSHIP ENTITLES THEM TO THE ANNUAL DIVIDEND WHICH FLUCTUATES ACCORDING TO EARNINGS IT ALSO ALLOWS THEM TO VOTE ON HIRING AND FIRING AND TO ELECT SIX OF COMMUNITY HEALTH'S NINE DIRECTORS EACH EMPLOYEE CAN OWN JUST ONE SHARE WHICH MUST BE FORFEITED IF HE OR SHE LEAVES THE COMPANY HOMECARE SPECIALISTS SAY THERE IS NO RELIABLE TURNOVER DATA FOR LARGER COMPANIES AND THE FIGURES THAT ARE AVAILABLE ARE WIDELY DIVERGENT BUT COMMUNITY HEALTH'S 15 RATE IS SUBSTANTIALLY BELOW THAT REPORTED BY SOME BIG CARE PROVIDERS VISITING NURSE SERVICE OF NEW YORK ONE OF THE NATION'S LARGEST SUPPLIERS OF HOMEHEALTH AIDES ESTIMATES THAT TURNOVER AT LARGER COMPANIES IS ABOUT 40 SOME SPECIALISTS SAY THAT WHILE EMPLOYEE OWNERSHIP WORKS WELL FOR SMALL HOMECARE CONCERNS IT MAY NOT BE PRACTICAL FOR LARGER ONES OWNERSHIP PLANS CAN'T MAKE A DENT IN THE INDUSTRY AS A WHOLE BECAUSE THEY'RE COMPLICATED TO PUT IN PLACE AND ARE EXTREMELY RELIANT ON OUTSIDE FUNDS SAYS PENNY FELDMAN WHO TEACHES HEALTH POLICY AT THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH BUT COMPANIES SAY THEY STILL FIND ADVANTAGES TO EMPLOYEE OWNERSHIP SOME SAY THAT THE MERE PROSPECT OF OWNERSHIP INDUCES WORKERS TO COME ON BOARD VALLEY CARE COOPERATIVE INC OF WATERBURY CONN WHICH PROJECTS AN INCREASE IN REVENUE IN THE FISCAL YEAR ENDING JUNE 30 TO 600000 FROM 350000 LAST YEAR IS AN EXAMPLE MODELED ON COMMUNITY HEALTH THE TWOYEAROLD CONCERN HOPES TO BREAK EVEN IN JUNE AND TO OFFER SHARES TO ITS 30 EMPLOYEES AT THAT POINT JUDY ANGELICOLA A VALLEY CARE HEALTH AIDE SAYS THAT LURE OF OWNERSHIP PROMPTED HER TO LEAVE HER RESTAURANT JOB A YEAR AGO AND TAKE NUTRITION AND COMPUTER CLASSES AT A COMMUNITY COLLEGE SO THAT SHE COULD WORK FOR THE COMPANY THIS IS THE ONLY THING I'VE DONE IN MY WHOLE LIFE THAT I ACTUALLY ENJOY DOING AND I'VE DONE A LOT OF JOBS SHE SAYS SCOTT GORDON EXECUTIVE DIRECTOR OF A HOMECARE COMPANY LAUNCHED LAST MONTH IN PHILADELPHIA IS ANOTHER BELIEVER HIS HOME CARE ASSOCIATES INC HAS 12 EMPLOYEES AND PROJECTS REVENUE OF 200000 THIS YEAR AND 1 MILLION IN 1994 IT EXPECTS TO BREAK EVEN NEXT YEAR AND OFFER STOCK TO EMPLOYEES EVERYONE HERE RECOGNIZES THAT THE SOONER WE REACH BREAKEVEN THE SOONER ALL WORKERS CAN BECOME OWNERS MR GORDON SAYS OUR WORKERS ARE CONSTANTLY GIVING US SUGGESTIONS ABOUT HOW WE MIGHT GROW SOME SMALL HOMECARE CONCERNS HAVE HAD TO ADOPT DIFFERENT STRATEGIES FOR SUCCESS AND IT HAS TAKEN THEM LONGER TO BECOME PROFITABLE MANOS HOME CARE INC BASED IN OAKLAND CALIF IS FOUR YEARS OLD AND EXPECTS TO BREAK EVEN THIS YEAR IT HAS 20 EMPLOYEES WHO WILL BE ELIGIBLE TO BUY SHARES WHEN THAT OCCURS BECAUSE CALIFORNIA HAS LESS PUBLIC FUNDING OF HOME CARE THAN STATES LIKE NEW YORK MANOS HAS ACCESS TO A SMALLER REVENUE STREAM MANOS WHICH HAD REVENUE OF ABOUT 285000 LAST YEAR ALSO IS FORBIDDEN BY STATE LAW FROM SEEKING SUBCONTRACTING WORK FROM LARGER HOMECARE COMPANIES WE HAD TO FIND CLIENTS WHO COULD AFFORD OUR SERVICES LIKE UPPER MIDDLECLASS PEOPLE SAYS MARGARET MOSSMAN A CONSULTANT TO MANOS BUT WE'VE DONE WELL AND WE'RE STARTING TO GET REFERRALS COOPERATIVE HOME CARE ASSOCIATES A NEW YORK HOME HEALTHCARE COMPANY WAS INCORRECTLY IDENTIFIED AS COMMUNITY HEALTH CARE ASSOCIATES IN FRIDAY'S ENTERPRISE ARTICLE 9302120093 930212 ECONOMY RETAIL SALES EDGED UP 03 DURING JANUARY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN CONSUMERS SLOWED THEIR SPENDING PACE IN JANUARY AS RETAIL SALES EDGED UP 03 THE COMMERCE DEPARTMENT SAID THE RISE TO 16739 BILLION LAST MONTH CAME ON TOP OF A MORE ROBUST REVISED INCREASE OF 08 TO 16685 BILLION IN DECEMBER THE DECEMBER GAIN WAS INITIALLY REPORTED AT 12 HOWEVER ANALYSTS SAY THE WEAKENING OF RETAIL SALES DOESN'T MEAN TROUBLE THERE WAS AN AWFUL LOT OF VIGOR IN RETAIL SALES IN DECEMBER SO IT IS NOT SURPRISING THAT THE STRENGTH HAS SLOWED DOWN A BIT SAID FABIAN LINDEN WHO HEADS THE CONSUMER RESEARCH CENTER AT THE CONFERENCE BOARD IN NEW YORK MANY ANALYSTS HAVE SAID THAT UNLESS JOB AND INCOME GROWTH PICK UP GROWTH IN CONSUMER SPENDING IS LIKELY TO BE VERY MODEST NEARLY ALL OF THE STRENGTH IN RETAIL SALES WAS IN DURABLE GOODS WHICH JUMPED 11 LAST MONTH AMERICANS SPENT MORE ON BUILDING MATERIALS AND FURNITURE THOUGH AT A LESSER RATE THAN IN DECEMBER CAR SALES WERE UP 11 IN JANUARY AFTER RISING 05 IN DECEMBER SANDRA SHABER RETAIL ANALYST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA SAID SALES OF HOMERELATED GOODS ARE LIKELY TO REMAIN STRONG BECAUSE OF THE BURST IN HOME SALES AT THE END OF LAST YEAR SALES OF NONDURABLE GOODS WERE WEAK FALLING 01 AFTER RISING 05 IN DECEMBER SALES AT GROCERY STORES RESTAURANTS AND APPAREL STORES ALL DECLINED SEPARATELY THE LABOR DEPARTMENT SAID NEW CLAIMS FOR UNEMPLOYMENT BENEFITS DECLINED 12000 IN THE WEEK ENDED JAN 30 TO 340000 THE DROP WAS THE SECOND DECLINE IN A ROW FOLLOWING A THREEWEEK RISE THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS FEEL MORE ACCURATELY PORTRAYS THE HEALTH OF THE LABOR MARKET FELL BY 1000 TO 354250 IN THE LATEST REPORTING WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9302120092 930212 MARKETING & MEDIA MADEMOISELLE'S EDITOR TRIES THE LOOK OF THE TWENTYSOMETHINGS ON FOR SIZE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONDE NAST PUBLICATIONS INC IS BETTING A 32YEAROLD EDITOR AND HER FRANK SOMETIMES BRASH JOURNALISTIC STYLE CAN TURN AROUND MADEMOISELLE ONE OF ITS MOST ESTABLISHED TITLES GABE DOPPELT'S MISSION IS TO TARGET WHAT SOME HAVE CALLED GENERATION X THE POSTBABYBOOMERS IN THEIR TWENTIES WHOSE BRAND OF FASHION AND POLITICS HAS FOUND A PLACE IN POPULAR CULTURE THROUGH BESTSELLING FICTION DESIGNER FASHIONS AND HIT RECORDS WITH WHAT MS DOPPELT CALLS A MORE DIRECT APPROACH SHE IS PUTTING THAT TWENTYSOMETHING MARK ON MADEMOISELLE WHOSE CIRCULATION HAS STALLED AT 11 MILLION AD PAGES LAST YEAR TOTALED 1300 COMPARED WITH 1650 IN 1989 THE MARCH ISSUE OF MADEMOISELLE HER FIRST FULL ISSUE AS EDITOR IN CHIEF WILL SHOW JUST WHERE SHE IS TAKING THE 57YEAROLD MAGAZINE APPEARING ON NEWSSTANDS NATIONWIDE TUESDAY MADEMOISELLE HAS UNDERGONE A THOROUGH FACELIFT INSTEAD OF MODELS WITH WHAT MS DOPPELT CALLS CATTLEPROD SMILES THE ISSUE'S COVER HAS TWO WAIFLIKE ANDROGYNOUS MODELS WITH BLANK GAZES SPORTING GAUZY DRESSES AND CLUNKY MEN'S SHOES SANS LACES BUT WHILE FRANKNESS HAS ITS CHARMS ESPECIALLY IN A MAGAZINE THAT HAS BEEN A BIBLE FOR WOMEN IN THEIR 20S IT CAN ALSO RAISE THE HACKLES OF ADVERTISERS AS CONDE NAST A UNIT OF ADVANCE PUBLICATIONS INC IS FINDING OUT MS DOPPELT WHO TOOK OVER AS THE EDITOR LATE LAST YEAR CREATED A SMALL STORM BY RUNNING A STORY IN HER FEBRUARY ISSUE ENTITLED HAIR SCARE THE ARTICLE CITED STUDIES THAT SUGGEST CERTAIN KINDS OF HAIR DYES MAY CAUSE CANCER THOUGH NO BRANDS WERE NAMED THE COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION FUMED CALLING THE STORY MISLEADING JAMES NIXON EXECUTIVE VICE PRESIDENT AT COSMAIR INC WHOSE L'OREAL AND LANCOME COSMETICS BRANDS ARE MAJOR CONDE NAST ADVERTISERS SAYS THE ARTICLE WAS UNBALANCED AND NEEDLESSLY ALARMING HE ADDS COSMAIR WON'T PULL ADS FROM MADEMOISELLE STILL IN THE OFTEN TOOCOZY WORLD OF FASHION ADVERTISING AND MAGAZINE PUBLISHERS THE MESSAGE WAS CLEAR WE ARE WATCHING MS DOPPELT A SOUTH AFRICAN NATIVE WHO ROSE THROUGH THE CONDE NAST FARM SYSTEM OF BRITISH AND US FASHION MAGAZINES SAYS SHE'LL CONTINUE TO SHAKE THINGS UP I'D DO THE HAIR STORY AGAIN SHE SAYS UNTIL MS DOPPELT ARRIVED SOME MEDIA DIRECTORS BELIEVED MADEMOISELLE HAD SPENT TOO MANY YEARS LOOKING TOO MUCH LIKE OTHER CONDE NAST MAGAZINES SUCH AS SELF AND GLAMOUR OR LIKE COMPETITORS SUCH AS HEARST CORP'S COSMOPOLITAN BUT WHILE MADEMOISELLE HAS RESORTED TO MAJOR CHANGE ITS LARGEST COMPETITOR COSMOPOLITAN REMAINS FAT AND PROFITABLE BY STICKING TO A FORMULA OF OLDFASHIONED SEX APPEAL AND ABUNDANT CLEAVAGE HITTING NEWSSTANDS TUESDAY IS A SPINOFF COSMOPOLITAN'S LIFE AFTER COLLEGE THE TEMPTATION HAS BEEN TO CHANGE COSMO THROUGH THE YEARS BUT WE'VE STUCK TO OUR KNITTING SAYS ITS PUBLISHER SETH HOYT INSIDE MS DOPPELT'S REMADE MADEMOISELLE THE PAGES GET A LITTLE MORE DARING IN STORIES AND PHOTO LAYOUTS A FASHION SPREAD DRESSES UP MALE AND FEMALE MODELS IN HISANDHERS CALVIN KLEIN SKIRTS A SPECIAL REPORT DECLARES YOUNG LESBIANS THEY'RE FRESH THEY'RE PROUD THEY'RE COMFORTABLE WITH THEIR SEXUALITY A NEW FEATURE CALLED MLLE COPES RAGES AGAINST WOMEN'S PAYING MORE THAN MEN FOR HAIRCUTS AND DRY CLEANING IT CALLS ON WOMEN TO PASS OUT PROTEST FLIERS IN FRONT OF THE OFFENDING SHOPS OR CONTACT THE LOCAL PAPER OR TELEVISION STATION TO EXPOSE THE RIPOFF MS DOPPELT SAYS SHE WANTS TO DO A STORY ON FAT AND THE BIAS AGAINST FAT PEOPLE ALTHOUGH THE MAGAZINE'S MODELS ARE MOSTLY REEDTHIN AND WHILE THE MAGAZINE ACCEPTS CIGARETTE ADS MS DOPPELT SAYS SHE WOULDN'T HESITATE TO DO A STORY ON THE HEALTH RISKS OF WOMEN IN THEIR 20S WHO SMOKE SOME AD EXECUTIVES THINK MS DOPPELT'S APPROACH IS JUST THE FIX NEEDED FOR THE REGIMENTED FIELD OF WOMEN'S LIFESTYLE AND FASHION MAGAZINES THERE IS A NUMBING SAMENESS THAT HAS CREPT INTO WOMEN'S MAGAZINES SO WHAT SHE HAS DONE IS APPEALING TO US SAYS DAVID VERKLIN CORPORATE MEDIA DIRECTOR FOR HAL RINEY & PARTNERS WHICH IS CONSIDERING WHETHER TO RUN ADS FOR SATURN AUTOS IN MADEMOISELLE 9302120091 930212 SWISS CS HOLDING AG EXPECTS TO REPORT NET ROSE SLIGHTLY FOR 1992 SPECIAL TO THE WALL STREET JOURNAL ZURICH SWITZERLAND CS HOLDING AG A SWISS BANKING AND INDUSTRIAL GROUP SAID IT EXPECTS TO REPORT SLIGHTLY HIGHER NET INCOME FOR 1992 BUT IT SAID WITHOUT PROVIDING ESTIMATES THAT THE NEED FOR PROVISIONING WAS HIGHER DUE TO THE POOR WORLD ECONOMY ESPECIALLY AT ITS LENDING BANKS WHILE CS HOLDING EXPECTS SIMILAR PROFIT CONTRIBUTIONS FROM ITS UNITS AS IN THE PREVIOUS YEAR IT SAID ITS INTEREST EXPENSE WAS SOMEWHAT LOWER THE COMPANY HAD A CONSOLIDATED GROUP PROFIT OF 980 MILLION FRANCS 6376 MILLION IN THE PRIOR YEAR CS HOLDING ALSO SAID THAT AS OF FEB 3 IT HELD 192 OF THE SWISS VOLKSBANK SHARES ENTITLED TO DIVIDENDS UNDER A PREVIOUSLY ANNOUNCED PLAN CS HOLDING IS PROPOSING A STOCK SWAP WITH VOLKSBANK SHAREHOLDERS ON A BASIS OF THREE NEW CS HOLDING SHARES TO ONE EXISTING VOLKSBANK COOPERATIVE SHARE A SPOKESMAN SAID THE EARLIER ESTIMATED VALUE OF THE TAKEOVER AT 16 BILLION FRANCS REMAINS VALID THE TRANSACTION DEPENDS UPON THE APPROVAL BY THE VOLKSBANK SHAREHOLDERS AT A MARCH 11 MEETING OF A CHANGE OF VOLKSBANK'S PRESENT COOPERATIVE OWNERSHIP STRUCTURE INTO A PUBLIC LIMITED COMPANYEND 9302120089 930212 ALLIEDSIGNAL RECEIVES CONTRACT MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC RECEIVED A LONGTERM CONTRACT VALUED AT ABOUT 500 MILLION TO DEVELOP A NAVIGATION UNIT FOR THE ARMY'S MOBILE ROCKET LAUNCHER THE AGREEMENT AWARDED BY PRIME CONTRACTOR LORAL VOUGHT SYSTEMS A DIVISION OF LORAL CORP CALLS FOR ALLIEDSIGNAL TO PRODUCE A POSITION/NAVIGATION UNIT THAT PROVIDES DIRECTIONS FOR MANEUVERING THE LAUNCHER AS WELL AS AIMING INSTRUCTIONS FOR FIRING ITS ROCKETS THE INITIAL CONTRACT COVERS A FOURYEAR DEVELOPMENT PHASE AFTER WHICH THE UNIT WOULD ENTER FULL PRODUCTION A PERIOD EXPECTED TO LAST FROM 10 TO 15 YEARS 9302120088 930212 BREEDEN SAYS HE WILL LEAVE POSITION AT SEC BY APRIL 15 WASHINGTON CHAIRMAN RICHARD BREEDEN SAID HE WILL RESIGN FROM THE SECURITIES AND EXCHANGE COMMISSION BY APRIL 15 AND POSSIBLY EARLIER IF PRESIDENT CLINTON NAMES A SUCCESSOR MR BREEDEN'S FOURYEAR TERM EXPIRES IN JUNE BUT THE CHAIRMAN SAID HE IS VERY ANXIOUS TO GET BACK TO PRIVATE LIFE MR BREEDEN SAID HIS CAREER PLANS ARE UNDECIDED BUT SAID HE IS CONSIDERING A RETURN TO LAW PRACTICE BEFORE HIS APPOINTMENT TO THE SEC MR BREEDEN WORKED WITHIN THE BUSH ADMINISTRATION TO DRAFT STRICT RULES FOR FINANCIAL INSTITUTIONS THOSE RULES TOOK EFFECT IN AUGUST 1989 9302120087 930212 LONRHO PRETAX PROFIT FELL 61 IN FISCAL '92 YEAR CALLED DIFFICULT' SPECIAL TO THE WALL STREET JOURNAL LONDON LONRHO PLC SAID PRETAX PROFIT IN THE YEAR ENDED SEPT 30 WAS 61 BELOW THE YEAR BEFORE LARGELY AS THE UK CONGLOMERATE SOLD BUSINESSES TO REDUCE ITS BORROWINGS BY 155 MILLION 221 MILLION THE PRETAX DROP TO 80 MILLION FROM A RESTATED 205 MILLION WAS IN LINE WITH THE FORECAST OF 79 MILLION THAT LONRHO MADE TO ACCOMPANY A 169MILLION RIGHTS ISSUE THE GROUP'S FULLYEAR DIVIDEND OF 4 PENCE A SHARE WAS ALSO IN LINE WITH ITS JANUARY FORECAST THE DIVIDEND WAS SLASHED 69 FROM 13 PENCE A YEAR EARLIER LONRHO'S RESTATED 1991 PRETAX PROFIT OF 205 MILLION COMPARES WITH ITS PREVIOUSLY ANNOUNCED FIGURE OF 207 MILLION AND REFLECTS A CHANGE IN ACCOUNTING POLICY FOR INTANGIBLE ASSETS MANY UK COMPANIES ARE EXPECTED TO MAKE SIMILAR ADJUSTMENTS IN THIS REPORTING SEASON AFTER CHANGES IN BRITISH ACCOUNTING NORMS LONRHO TERMED LAST YEAR MOST DIFFICULT LONRHO'S PROFIT ATTRIBUTABLE TO SHAREHOLDERS EXCLUDING EXTRAORDINARY ITEMS TOTALED 8 MILLION DOWN FROM 90 MILLION INCLUDING EXTRAORDINARY ITEMS ATTRIBUTABLE PROFIT TOTALED 86 MILLION COMPARED WITH 72 MILLION THE EXTRAORDINARY ITEMS ARE PROFIT AND LOSS FROM VARIOUS ASSET SALES AND SOME CLOSURE COSTS THE COMPANY DID GAIN FROM A LOWER INTEREST CHARGE 99 MILLION VERSUS 112 MILLION THE PRIOR YEAR PROFIT FELL IN ALL SEVEN DIVISIONS PROFIT AT ITS MOSTPROFITABLE DIVISION MINERAL EXTRACTION AND REFINING FELL TO 57 MILLION FROM 106 MILLION PROFIT AT ITS MOTOR AND EQUIPMENT DISTRIBUTION UNIT FELL TO 34 MILLION FROM 58 MILLION THERE WERE SOME BRIGHT SPOTS REVENUE ROSE SLIGHTLY IN LONRHO'S MANUFACTURING FINANCIAL SERVICES AND AGRICULTURE DIVISIONS AND STAYED EVEN IN LEISURE PROFIT FELL IN EACH OF ITS FIVE FARFLUNG GEOGRAPHIC REGIONS PROFIT FROM EAST CENTRAL AND WEST AFRICA DID THE BEST FALLING ONLY 23 TO 95 MILLION FROM 123 MILLION UK PROFIT FELL 39 TO 31 MILLION FROM 51 MILLION AND PROFIT FROM SOUTHERN AFRICA FELL 64 TO 31 MILLION FROM 86 MILLION LONRHO SAID A PROPOSAL WILL BE INTRODUCED AT ITS APRIL 2 ANNUAL MEETING THAT WOULD ALLOW THE COMPANY TO BUY BACK 76 MILLION SHARES ON THE OPEN MARKET 9302120086 930212 CREDIT RATINGS CATERPILLAR INC PEORIA ILL MOODY'S INVESTORS SERVICE INC CONFIRMED ITS CURRENT RATINGS ON CATERPILLAR'S 38 BILLION OF LONGTERM DEBT AFTER PLACING THE RATINGS UNDER REVIEW TWO MONTHS AGO THE RATING CONCERN SAID IT CONFIRMED THE RATINGS ON THE BASIS OF ITS EXPECTATIONS THAT CAT WILL SHOW A MODEST BUT STEADY CYCLICAL RECOVERY FOLLOWING TWO YEARS OF OPERATING LOSSES AND SPECIAL CHARGES MOODY'S ALSO SAID IT EXPECTS FUTURE OPERATING RESULTS AT THE MAKER OF CONSTRUCTION EQUIPMENT AND DIESEL ENGINES TO BENEFIT FROM CATERPILLAR'S IMPROVED COST STRUCTURE INCLUDING THE POSITIVE EFFECTS OF A PLANT MODERNIZATION PROGRAM 9302120085 930212 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 CLEVELAND ELECTRIC ILLUMINATING CO 150 MILLION ISSUE OF 9 FIRST MORTGAGE BONDS DUE JULY 1 2023 WAS PRICED AT 9926 TO YIELD 907 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 185 BASIS POINTS ABOVE THE WHENISSUED OR PREAUCTION TREASURY 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 DELIVERY IS SCHEDULED FOR FEB 22 FLAT CLEVELAND ELECTRIC ILLUNINATING IS A UNIT OF CENTERIOR ENERGY CORP GTE NORTHWEST INC 125 MILLION ISSUE OF FIRST MORTGAGE BONDS DUE FEB 15 1999 WAS WON IN COMPETITIVE BIDDING BY DEALERS LED BY MORGAN STANLEY & CO THE BONDS 6125 WILL BE REOFFERED AT 99315 TO YIELD 6264 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY'S 8875 NOTES DUE FEBRUARY 1999 THE SECURITIES ARE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P SELLING CONCESSION IS 2 AND REALLOWANCE IS 125 DELIVERY IS SCHEDULED FOR FEB 23 WITH INTEREST ACCRUING FEB 15 GTE NORTHWEST IS A UNIT OF GTE CORP PRINCE GEORGE'S COUNTY MARYLAND INDUSTRIAL DEVELOPMENT AUTHORITY 51 MILLION SERIES 1993 REFUNDING LEASE REVENUE BONDS HAVE BEEN REPRICED BY A LEHMAN BROTHERS GROUP AT THE REPRICING THE YIELD FOR THE 1993 BONDS WAS LOWERED 50 BASIS POINTS TO 225 AND THE YIELD FOR THE 2019 BONDS WAS TRIMMED 20 BASIS POINTS TO 588 YIELDS NOW RANGE FROM 225 IN 1993 TO 590 IN 2014 THE BONDS WHICH ARE FOR THE UPPER MARLBORO JUSTICE CENTER PROJECT ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PREFERRED INCOME MANAGEMENT FUND AN INITIAL OFFERING OF EIGHT MILLION COMMON SHARES WAS PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GROSS SPREAD IS 105 SELLING CONCESSION IS 65 CENTS AND REALLOWANCE IS 25 CENTS DELIVERY PHYSICAL IS SCHEDULED FOR FEB 19 CONE MILLS CORP A SECONDARY OFFERING OF 6173895 COMMON SHARES WAS PRICED AT 15875 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC THE SHARES ARE BEING SOLD BY A GROUP OF NINE BANK AFFILIATES AND A CHARITABLE TRUST WHO ACQUIRED THEM IN CONNECTION WITH THE FINANCING OF THE 1984 LEVERAGED BUYOUT IN WHICH CONE MILLS BECAME A PRIVATE COMPANY GROSS SPREAD IS 83 CENTS SELLING CONCESSION IS 44 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 19 LEVIATHAN GAS PIPELINE PARTNERS LP AN INITIAL OFFERING OF 525 PREFERENCE UNITS WAS PRICED AT 2050 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROSS SPREAD IS 1435 SELLING CONCESSION IS 84 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY PHYSICAL WITH PENALTY BID IS SCHEDULED FOR FEB 19 SEQUENT COMPUTER SYSTEMS INC AN OFFERING OF 4626092 COMMON SHARES WAS PRICED AT 25125 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LAST MONTH THE COMPANY FILED FOR A PROPOSED OFFERING OF 4309881 SHARES OF THE TOTAL 4626092 SHARES NOW BEING SOLD 3700874 WILL BE OFFERED IN THE US AND THE REMAINING 925218 WILL BE SOLD INTERNATIONALLY GROSS SPREAD IS 90 CENTS SELLING CONCESSION IS 50 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 19 MERRY LAND & INVESTMENT CO AN OFFERING OF 45 MILLION COMMON SHARES WAS PRICED AT 16875 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC GROSS SPREAD IS 915 CENTS SELLING CONCESSION IS 52 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB HILO AUTOMOTIVE INC AN OFFERING OF 31 MILLION COMMON SHARES WAS PRICED AT 1925 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO IN ITS FILING THE COMPANY SAID IT WOULD SELL ONE MILLION OF THE SHARES AND SARATOGA PARTNERS LP AND OTHER CURRENT HOLDERS WOULD SELL THE REST AFTER THE OFFERING SARATOGA PARTNERS AND ITS AFFILIATES WILL OWN ABOUT 20 OF HILO'S OUTSTANDING COMMON SHARES GROSS SPREAD IS 96 CENTS SELLING CONCESSION IS 57 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 22 CELLPRO INC AN OFFERING OF 25 MILLION COMMON SHARES WAS PRICED AT 1650 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC GROSS SPREAD IS 91 CENTS SELLING CONCESSION IS 52 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 22 ELECTRONICS FOR IMAGING INC AN OFFERING OF 25 MILLION COMMON SHARES WAS PRICED AT 1825 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO GROSS SPREAD IS 102 SELLING CONCESSION IS 58 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 18 IEC ELECTRONICS CORP AN INITIAL OFFERING OF 25 MILLION COMMON SHARES WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY NEEDHAM & CO THE SIZE OF THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED TWO MILLION SHARES EXPECTED TO COME TO MARKET BETWEEN 11 AND 13 EACH GROSS SPREAD IS 91 CENTS SELLING CONCESSION IS 55 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 22 IMMULOGIC PHARMACEUTICAL CORP A PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK AT A PRICE OF 950 A SHARE MORGAN STANLEY & CO AND HAMBRECHT & QUIST INC ARE MANAGING THE OFFERING IMMULOGIC SAID IN A PRESS RELEASE IT GRANTED THE UNDERWRITERS AN OPTION TO PURCHASE UP TO 375000 SHARES OF COMMON STOCK TO COVER OVERALLOTMENTS IF ANY TECH DATA CORP AN OFFERING OF 25 MILLION COMMON SHARES WAS PRICED AT 2675 EACH THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CO GROSS SPREAD IS 114 SELLING CONCESSION IS 68 CENTS AND REALLOWANCE IS 25 CENTS DELIVERY IS SCHEDULED FOR FEB 19 UNIVERSAL ELECTRONICS INC AN INITIAL OFFERING OF 24 MILLION COMMON SHARES OF WAS PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED BETWEEN 10 AND 12 EACH THE COMPANY IS SELLING TWO MILLION OF THE SHARES AND CERTAIN STOCKHOLDERS ARE OFFERING THE REMAINING 400000 TERMS WERE NOT IMMEDIATELY AVAILABLE FEDERAL NATIONAL MORTGAGE ASSOCIATION 967755 MILLION ISSUE OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 210 ISSUE BACKED BY FANNIE MAE 750 MORTGAGE SECURITIES IS BEING OFFERED BY MORGAN STANLEY & CO CLASS 1 REPRESENTS 9333 OF THE PRINCIPAL ON THE CERTIFICATES AND CLASS 2 REPRESENTS 100 OF THE INTEREST PAYMENTS AND 067 OF THE PRINCIPAL PAYMENTS ON THE CERTIFICATES FANNIE MAE SAID THIS STRIPS TRUST DOESN'T BACK AND ISN'T BACKED BY A REMIC AT THIS TIME THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 150 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 815 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES FEB 17 FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199329 IS BACKED BY FANNIE MAE 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 185 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 820 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES MARCH 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY NOMURA SECURITIES INTERNATIONAL THE OFFERING SERIES 199330 IS BACKED BY FANNIE MAE 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 185 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES MARCH 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199327 IS BACKED BY PI CLASS 4 A 550 SYNTHETIC COUPON ISSUED IN STRIPPED MORTGAGEBACKED SECURITIES TRUST 203 WHICH IN TURN WAS BACKED BY FANNIE MAE 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 850 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS THE ISSUE SETTLES FEB 26 FEDERAL NATIONAL MORTGAGE ASSOCIATION 20012 MILLION ISSUE OF STRIPPED MORTGAGEBACKED SECURITIES TRUST SERIES 208 IS BEING OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING IS BACKED BY THE IO CLASS FROM FANNIE MAE'S SERIES 1993G10 REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERING WHICH IS BACKED BY 850 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 180 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2875 YEARS THE ISSUE SETTLES MARCH 30 FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G12 IS BACKED BY 10 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GINNIE MAE MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 500 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2533 YEARS THE ISSUE SETTLES FEB 26 FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD 1482 IS BACKED BY FREDDIE MAC GOLD 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 175 OF THE PSA CURVE THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 810 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS THE ISSUE SETTLES MARCH 30 REPUBLIC OF IRELAND SOVEREIGN 15 BILLION MARKS OF 725 EUROBONDS DUE FEB 18 2003 BY 500 MILLION MARKS TO TOTAL 15 BILLION MARKS AND SET FINAL TERMS VIA DEUTSCHE BANK AG ISSUED AT 102235 AND REOFFERED AT 10006 TO YIELD 724 TO GIVE A SPREAD OF 25 BASIS POINTS ABOVE THE GERMAN GOVERNMENT'S 7125 BUND DUE DECEMBER 2002 FEES 250 COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 200 MILLION MARKS OF 675 EUROBONDS WITH WARRANTS ATTACHED DUE MARCH 11 1998 AT AN ISSUE PRICE OF 119 VIA COMMERZBANK AG EACH BOND HAS TWO WARRANTS ATTACHED AND INVESTORS NEED TWO WARRANTS TO SUBSCRIBE TO ONE SHARE OF COMMERZBANK AG TRADED ON THE FRANKFURT STOCK EXCHANGE AT A STRIKE PRICE OF 260 MARKS COMPARED WITH A CURRENT TRADING LEVEL OF 268 MARKS EXERCISE PERIOD RUNS FROM MAY 15 1993 TO DEC 10 1996 GUARANTEED BY COMMERZBANK FEES UNDISCLOSED FORTE PLC UK 200 MILLION OF 10 BONDS DUE FEB 18 2018 SECURED ON A PORTFOLIO OF 11 HOTELS IN THE UK AT A FIXED REOFFER PRICE OF 99663 VIA UBS PHILLIPS & DREW SPREAD 115 BASIS POINTS ABOVE THE UK TREASURY'S 8 DUE 2017 FEES 0625 THAMES INVESTMENT NO 1 LTD UK 100 MILLION OF EUROBONDS DUE MAY 15 1996 BACKED BY UK GOVERNMENT BONDS GILTS VIA SAMUEL MONTAGU & CO COUPON OF 7125 ON NOV 15 1993 AND PAY SEMIANNUAL COUPONS THEREAFTER AT 1275 MINUS THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR STERLING BACKED BY AN EQUAL AMOUNT OF 1325 GILTS DUE MAY 15 1996 INITIAL FIXED OFFER PRICE IS PAR FEES 025 DRESDNER BANK GERMANY 100 MILLION CANADIAN OF 7125 EUROBONDS DUE MARCH 24 1998 AT AN ISSUE PRICE OF 99 VIA ITS OWN SYNDICATION DESK REOFFERED AT 97375 TO YIELD 778 ANNUALLY A SPREAD OF 48 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT ISSUE FEES 1875 EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION PESETAS OF 1125 EUROBONDS DUE MARCH 4 1998 AT AN ISSUE PRICE OF 10140 VIA BANCO CENTRAL HISPANOAMERICANO FEES 1625 9302120084 930212 AMERICAN EXPRESS SHARES ARE BOUGHT BY FUND AMERICAN BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FUND AMERICAN ENTERPRISES HOLDINGS INC A COMPANY RUN BY AMERICAN EXPRESS CO BOARD MEMBER JOHN J BYRNE PURCHASED ROUGHLY FIVE MILLION AMERICAN EXPRESS SHARES LAST WEEK MAKING FUND AMERICAN ONE OF THE COMPANY'S LARGEST SHAREHOLDERS THE SHARES WERE PURCHASED FROM FEB 1 TO FEB 5 A FEW DAYS AFTER JAMES D ROBINSON III RESIGNED AS AMERICAN EXPRESS CHAIRMAN MR BYRNE OPPOSED THE RETENTION OF MR ROBINSON AS CHAIRMAN AND IS RESIGNING FROM THE COMPANY'S BOARD WHEN HIS TENURE EXPIRES IN APRIL THE PURCHASES WERE DISCLOSED IN A SECURITIES AND EXCHANGE COMMISSION FILING BASED ON YESTERDAY'S SHARE PRICE OF 25 THE STAKE HAS A VALUE OF 125 MILLION AND REPRESENTS AROUND 1 OF THE COMPANY'S SHARES OUTSTANDING FUND AMERICAN A MORTGAGE BANKING AND INVESTMENT COMPANY DIDN'T OWN AMERICAN EXPRESS STOCK PRIOR TO THE PURCHASES ROBERT MARTO FUND AMERICAN'S CHIEF FINANCIAL OFFICER CALLED SHARES OF AMERICAN EXPRESS AN ATTRACTIVE INVESTMENT BUT DECLINED TO COMMENT FURTHER THE SHARES WERE PURCHASED AT 2450 TO 25 WITH AN AVERAGE PRICE OF 24875 AS OF THE THIRD QUARTER ONLY 15 INSTITUTIONS HELD MORE THAN FIVE MILLION SHARES INCLUDING SANFORD C BERNSTEIN & CO JP MORGAN & CO NEWBOLD'S ASSET MANAGEMENT AND OPPENHEIMER & CO LP ACCORDING TO CDA INVESTMENT TECHNOLOGIES INC MEANWHILE AMERICAN EXPRESS EXECUTIVES MET WITH WALL STREET ANALYSTS TO REVIEW THE COMPANY'S YEAREND PERFORMANCE AND DISCUSS STRATEGIES FOR 1993 HARVEY GOLUB THE COMPANY'S NEW CHIEF EXECUTIVE SPOKE ABOUT THE RESULTS FOLLOWED BY JONATHEN LINEN HEAD OF ITS FLAGSHIP TRAVEL RELATED SERVICES AND EXECUTIVES FROM ITS SHEARSON LEHMAN BROTHERS SUBSIDIARY ANALYSTS WHO ATTENDED THE MEETING SAID COMPANY EXECUTIVES SAID THAT SHEARSON WILL NEED AN ADDITIONAL 1 BILLION IN EQUITY CAPITAL TO BRING ITS CREDIT RATING UP TO A SINGLEA STANDALONE RATING WITHOUT THE SUPPORT OF THE PARENT WHILE IT WAS KNOWN THAT SHEARSON NEEDED CAPITAL THIS IS THE FIRST TIME THE AMOUNT HAS BEEN QUANTIFIED BY THE COMPANY A COMPANY SPOKESMAN CONFIRMED LAST NIGHT EXECUTIVES TOLD ANALYSTS THE FIRM EXPECTS THE CAPITAL TO COME FROM PROFIT OF SHEARSON IF SHEARSON CAN ACHIEVE ITS INTERIM GOAL OF EARNING 15 RETURN ON EQUITY THE COMPANY WOULD RAISE THE CAPITAL BY EARNING MORE THAN 300 MILLION ANNUALLY OVER THREE YEARS THE COMPANY SAID TO SOME ON WALL STREET THAT IMPLIES A SALE OF SHEARSON IS FURTHER OFF THAN SOME ON WALL STREET HAD EXPECTED 9302120083 930212 BUSINESS BRIEFS RANDOM ACCESS INC SIGNED A 30MONTH CONTRACT TO BE THE EXCLUSIVE APPLE COMPUTER INC SALES AGENT FOR ELEMENTARY AND SECONDARY SCHOOL ACCOUNTS IN A SIXSTATE REGION TERMS WEREN'T DISCLOSED PEPSICO INC'S INTERNATIONAL SOFT DRINKS UNIT ACQUIRED EMBOTELLADORA CHILE A BOTTLING VENTURE IN CHILE TERMS WEREN'T DISCLOSED SARA LEE CORP ACQUIRED ABOUT 20 OF THE FILODORO GROUP TERMS WEREN'T DISCLOSED CARLISLE COS AGREED IN PRINCIPLE TO ACQUIRE GOODYEAR TIRE & RUBBER CO'S ROOFING BUSINESS TERMS WERN'T DISCLOSED SHERRITT GORDON LTD EXPECTS ITS NEW COBALT REFINERY WHICH CUTS PRODUCTION COSTS IN HALF TO BE OPERATING AT FULL CAPACITY BY THE END OF THIS YEAR ABOUT EIGHT MONTHS BEHIND SCHEDULE HAROLD'S STORES INC'S SAMESTORE SALES ROSE 144 IN ITS FISCAL YEAR ENDED JAN 30 9302120081 930212 REP MARKEY ASKS SEC TO STUDY TRANSFER FEES OF BROKERAGE FIRMS WASHINGTON REP EDWARD J MARKEY D MASS ASKED THE SECURITIES AND EXCHANGE COMMISSION TO STUDY THE LATEST ROUND OF FEES WALL STREET BROKERAGE FIRMS ARE CHARGING INVESTORS IN A LETTER TO SEC CHAIRMAN RICHARD C BREEDEN THE CHAIRMAN OF THE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE ASKED THE SEC FOR A VARIETY OF INFORMATION ABOUT TRANSFER FEES WHICH NOW ARE LEVIED BY SOME BROKERAGE FIRMS WHEN CUSTOMERS CLOSE OUT AN ACCOUNT AND MOVE TO A RIVAL SECURITIES FIRM AS REPORTED SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA AND SMITH BARNEY HARRIS UPHAM & CO A UNIT OF PRIMERICA CORP ARE CHARGING A 50 FEE TO OFFSET RISING PAPERWORK AND ADMINISTRATIVE EXPENSES CALLING THE TRANSFER FEES AN APPARENT UNFAIRNESS REP MARKEY SAID IN THE LETTER IN ESSENCE THE CUSTOMER MUST PUT UP OR SHUT UP' WITH HIS ONLY CHOICE BEING EITHER TO RETAIN AN ACCOUNT OR TO PAY THE FEE THE LETTER ASKED FOR A LIST OF FIRMS THAT CHARGE SUCH FEES AND INQUIRED INTO THE ACTUAL COST TO CLOSE AN ACCOUNT AMONG OTHER THINGS REP MARKEY REQUESTED THE INFORMATION BY MARCH 5 9302120080 930212 TWO MEN ACCUSED OF INSIDE TRADES AGREE TO GIVE UP PROFITS WASHINGTON TWO PEOPLE ACCUSED OF PROFITING FROM INSIDER TRADING IN MARION LABORATORIES INC SECURITIES HAVE AGREED TO GIVE UP THE PROFITS WITHOUT ADMITTING WRONGDOING THE SECURITIES AND EXCHANGE COMMISSION SAID THE SEC SAID MICHAEL TRIKILIS AND THOMAS LACHAPELLE AGREED TO GIVE UP A TOTAL OF 416769 IN PROFITS FROM THEIR TRADING IN MARION'S COMMON STOCK AND STOCK OPTIONS BEFORE THE COMPANY'S 1989 MERGER WITH A UNIT OF DOW CHEMICAL CO OF MIDLAND MICH THE MEN ALSO AGREED TO PAY MORE THAN 160000 IN INTEREST ON THE PROFITS PLUS CIVIL PENALTIES OF ALMOST 108000 THE AGENCY SAID NEITHER OF THE MEN NOR THEIR LAWYERS COULD BE REACHED FOR COMMENT IN A COMPLAINT FILED IN FEDERAL COURT IN LOS ANGELES IN JUNE 1991 THE SEC CHARGED THAT MESSRS TRIKILIS AND LACHAPELLE BOUGHT MARION STOCK ON THE ADVICE OF A RELATIVE WHOSE NIECE WORKED AT MARION THE NIECE BARBARA ALDRIGE DIDN'T BUY STOCK BUT AGREED IN 1991 TO PAY A 10000 PENALTY TO SETTLE THE SEC CASE MS ALDRIGE DIDN'T ADMIT ANY WRONGDOING 9302120079 930212 ARMORED CAR FIRM'S OWNERS FACE CHARGES BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OWNERS OF A LONG ISLAND ARMORED CAR SERVICE UNDER INVESTIGATION FOR POSSIBLE THEFT OF BANK DEPOSITS SURRENDERED TO POLICE AND THE FEDERAL BUREAU OF INVESTIGATION A FBI WARRANT WAS ISSUED WEDNESDAY FOR THE ARREST OF ROBERT AND SUSANNA SCARETTA WHO BUILT REVERE ARMORED INC INTO ONE OF THE LARGEST ARMORED CAR SERVICES IN THE NORTHEAST THEY SURRENDERED TO AUTHORITIES IN MELVILLE LONG ISLAND AND WERE LATER CHARGED WITH BANK FRAUD AND THEFT IT'S POSSIBLE THAT TENS OF MILLIONS OF DOLLARS ARE MISSING FROM THE ACCOUNTS OF SEVERAL MAJOR BANKS THAT USED THE SERVICE TO COLLECT DEPOSITS FROM MERCHANTS AND TRANSFER FUNDS AMONG BANK BRANCHES WHILE THE BANKS MAINTAIN THEY ARE COVERED BY INSURANCE THE HEAD OF A LLOYDS OF LONDON UNDERWRITING SYNDICATE THAT INSURED REVERE SAID THAT IF FUNDS ARE MISSING IT'S UNCLEAR WHETHER ALL OF THEM WOULD BE COVERED BY HIS GROUP'S INSURANCE OTHER POSSIBLE CLAIMANTS COULD BE MERCHANTS WHOSE FUNDS WERE PICKED UP BY REVERE BUT NOT CREDITED TO THE MERCHANTS' BANK ACCOUNTS THE LLOYDS UNDERWRITER THOMAS ALDRIDGE OF JANSON GREEN LTD SAID I COULDN'T GUARANTEE THAT EVERY SINGLE DOLLAR THAT'S MISSING WILL BE REIMBURSED HE ADDED THAT ONE WOULD HAVE TO PROVE WHAT MONEY BELONGED TO WHOM THE CHANCES FOR RECOVERY ARE BETTER HE ADDED IF THE CLAIMANT IS LISTED AS ONE OF THE INSURED AS SOME OF THE BANKS ARE MOST IMPORTANT HOWEVER IS THE POSSIBILITY CRIMINAL ACTIVITY COULD EXEMPT HIS GROUP FROM CLAIMS SAID MR ALDRIDGE HE DECLINED TO COMMENT FURTHER THE BROKER IN NEW YORK WHO SOLD THE POLICY TO REVERE HOWEVER DISPUTES THE NOTION THAT EVIDENCE OF FRAUD WOULD LET THE LLOYDS GROUP OFF THE HOOK IT'S AN ALLRISK POLICY SAID JOHN JENNINGS OF JARDINE INSURANCE BROKERS IN NEW YORK SEVERAL LARGE BANKS LED BY CITIBANK BROUGHT AUTHORITIES IN ON TUESDAY WHEN THEY WERE DENIED ACCESS TO REVERE'S BOHEMIA LONG ISLAND HEADQUARTERS FOR A SURPRISE AUDIT OF THE BANKS' FUNDS MONEY COLLECTED BY REVERE FROM MERCHANTS WAS COUNTED AT THE FACILITY AND HELD AS INVENTORY FOR THE BANKS WHEN CITIBANK DID GAIN ACCESS TO COUNT ITS MONEY IT FOUND THAT THERE WAS ONLY ABOUT 11 MILLION ON HAND INSTEAD OF THE 225 MILLION THAT WAS SUPPOSED TO BE THERE AT LEAST HALF A DOZEN OTHER BANKS HAVE YET TO FIND OUT WHETHER OR NOT THERE'S A SHORTAGE IN THEIR FUNDS HELD AT REVERE THE FBI IS CURRENTLY CONDUCTING AN AUDIT OF THE MONEY AT REVERE'S LONG ISLAND FACILITIES AND OTHER TRANSFER OFFICES IN CONNECTICUT NEW YORK AND NEW JERSEY AT ANY ONE TIME REVERE WAS SUPPOSED TO HAVE UPWARD OF 200 MILLION ON ITS PREMISES IN LONG ISLAND AND OTHER TRANSFER OFFICES ACCORDING TO SOURCES CLOSE TO THE INVESTIGATION IT'S POSSIBLE THAT ONCE THE FBI IS FINISHED COUNTING UP ALL THE MONEY AND ALL CLAIMS ARE MADE THE TWO SIDES WILL MATCH THEY SAID 9302120078 930212 RESTAURANT CONCERN BUILT BY WILT TRIPS AS IT GOES PUBLIC IPO FOR THE BASKETBALL LEGEND'S VENTURE IS DUNKED BY 14 TO CLOSE THE FIRST DAY AT 6 BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILT CHAMBERLAIN'S RESTAURANTS INC ONE OF THE QUIRKIER NEW STOCKS TO HIT THE MARKET LEAPT ONTO THE COURT YESTERDAY AND IMMEDIATELY TRIPPED THE INITIAL PUBLIC OFFERING OF 14 MILLION SHARES OF THE BOCA RATON FLA COMPANY WHICH OWNS A SINGLE RESTAURANT NAMED AFTER THE LEGENDARY BASKETBALL STAR WAS PRICED AT 7 A SHARE IT CLOSED AT 6 FOR A 14 DECLINE ON ITS FIRST DAY IN OVERTHECOUNTER TRADING BUT WHILE THE PRICE ACTION WAS DISAPPOINTING FOR THE SMALL COMPANY WHOSE STOCK SYMBOL IS WILT IT STILL MANAGED TO RAISE 98 MILLION FROM INVESTORS YESTERDAY ALL FOR A SINGLE 242SEAT RESTAURANT THAT TURNED A PROFIT OF 222706 IN THE FIRST NINE MONTHS OF LAST YEAR FOLLOWING THE OFFERING MR CHAMBERLAIN OWNS A 33 STAKE IN THE COMPANY SOME IPO EXPERTS CONSIDER THE WILT CHAMBERLAIN'S RESTAURANTS DEAL TO BE HIGHLY SPECULATIVE THEY ASSERT THAT THE OFFERING'S SUCCESSFUL COMPLETION SHOWS THAT THE IPO MARKET AND RESTAURANT STOCKS IN PARTICULAR MAY BE REACHING THE FROTHY STAGE THE IPO SCENE MAY EVEN HAVE BECOME AS MINDBENDING AS THE WILT EATERIE'S SPECIAL ALCOHOLIC DRINK NAMED THE DOUBLE DRIBBLE IN THE WAY OF MEALS HOWEVER IT SERVES DISHES FROM MEXICAN PIZZA TO BLACKENED GROUPER ROBERT NATALE NEW ISSUES ANALYST AT STANDARD & POOR'S CORP SAYS RESTAURANT OFFERINGS HAVE BECOME TOO PRICEY IN THE REDHOT IPO MARKET OF RECENT MONTHS RESTAURANT STOCKS ARE PUSHING THE EDGE HE SAID WE'VE HAD TACO BARS COFFEE SHOPS STEAK HOUSES AND SALAD BARS GIVE ME A BREAK WE HAVE TO GO ON TO SOMETHING NEW SOON THAT'S APPARENTLY WHAT SOME WILT CHAMBERLAIN'S INVESTORS DID IMMEDIATELY AFTER GETTING THEIR SHARES YESTERDAY ALMOST 11 MILLION SHARES CHANGED HANDS ON THE DAY ABOUT EQUALING THE NUMBER OF SHARES IN THE OFFERING TRADERS SAID MANY EARLY BUYERS DUMPED THE STOCK WHEN IT BRIEFLY TRADED AT 750 A SHARE NOW WE HAVE TO GO IN AND CREATE MORE INTEREST AND MOVE IT BACK UP EXPLAINED ONE TRADER WILT CHAMBERLAIN'S OFFICERS WHO LICENSE THEIR RESTAURANT'S NAME FROM MR CHAMBERLAIN AND RELY ON HIM FOR PROMOTIONAL WORK WOULDN'T COMMENT YESTERDAY THEY CITED SECURITIES AND EXCHANGE COMMISSION RESTRICTIONS ON PUBLIC STATEMENTS BEFORE AND AFTER STOCK OFFERINGS THE LITTLEKNOWN NEW YORK SECURITIES FIRM THAT UNDERWROTE THE STOCK MEYERS POLLOCK ROBBINS INC WOULDN'T COMMENT EITHER HOWEVER IN A RECENT STATEMENT CHARLES AVERBROOK WILT CHAMBERLAIN'S CHIEF EXECUTIVE OFFICER STOOD UP FOR THE DEAL DENYING REPORTS THAT THE RESTAURANT HAS LESS THAN A TWOYEAR TRACK RECORD IT HAS JUST OVER TWO YEARS UNDER ITS BELT MR AVERBOOK EMPHASIZED THE OFFERING HE ADDED WILL PROVIDE THE COMPANY THE OPPORTUNITY TO FULFILL THE REQUESTS OF MANY OF THE OUTOFTOWN CUSTOMERS OF THE RESTAURANT WHO ARE ANXIOUS FOR WILT CHAMBERLAIN'S RESTAURANTS IN THEIR HOME CITIES 9302120076 930212 GERALDO RIVERA SUED FOR BROADCASTING REFEREE'S COMPLAINT PRO WRESTLING EXECUTIVE SLAMS TELEVISION TALKSHOW HOST FOR INFLICTION OF DISTRESS' BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TALKSHOW HOST GERALDO RIVERA CAN'T SEEM TO STAY OUT OF A FIGHT THE TABLOIDTV JOURNALIST WHO HAS BEEN BEATEN UP ON THE AIR BY SKINHEADS IS BACK IN THE RING AGAIN THIS TIME PITTED AGAINST THE WORLD WRESTLING FEDERATION VINCE MCMAHON PRESIDENT OF THE PRO WRESTLING GROUP'S PARENT COMPANY TITANSPORTS INC AND HIS WIFE LINDA FILED SUIT IN STAMFORD CONN ACCUSING MR RIVERA OF INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS THE ALLEGED PAIN RESULTED FROM AN APRIL 3 1992 BROADCAST OF MR RIVERA'S SYNDICATED NEWSMAGAZINE NOW IT CAN BE TOLD AS LAWSUIT PAPERS TELL IT MR MCMAHON'S LAWYERS ALLEGE THAT MR RIVERA BROADCAST A SEGMENT IN WHICH A FORMER WWF REFEREE RITA CHATTERTON ALL BUT ACCUSED MR MCMAHON OF RAPE MR RIVERA DID SO DESPITE HAVING PRIOR KNOWLEDGE THAT MS CHATTERTON HAD FABRICATED EVIDENCE TO SUPPORT HER CLAIM THE LAWSUIT ALLEGES ALSO NAMED IN THE SUIT WERE BROOKE SKULSKI A PRODUCER ON MR RIVERA'S NOWCANCELED SHOW TRIBUNE ENTERTAINMENT CO WHICH DISTRIBUTED THE SHOW MR RIVERA'S PRODUCTION COMPANY INVESTIGATIVE NEWS GROUP INC WHICH PRODUCED THE SHOW AND MS CHATTERTON THE LAWSUIT NAMES ONE OTHER SOMEWHAT PROMINENT DEFENDANT DAVID SHULTS A FORMER WWF WRESTLER WHO IS PERHAPS MOST NOTED FOR BATTERING ANOTHER TELEVISION JOURNALIST ABC NEWS REPORTER JOHN STOSSEL DURING AN INTERVIEW IT SEEMS MR STOSSEL HAD INTIMATED THAT PRO WRESTLING IS FAKE THE COMPLEX TALE WOVEN IN THE COURT COMPLAINT ALLEGES THAT THE FORMER WRESTLER AND MS CHATTERTON THE FORMER LADY REFEREE HAD COLLABORATED IN CREATING A PHONY AUDIOTAPE IN A SCHEME TO ESSENTIALLY BLACKMAIL THE HEAD OF THE WWF THE SUIT ALSO CLAIMS THAT MS CHATTERTON HAD ASKED MR MCMAHON TO SETTLE THE CHARGES FOR 5 MILLION OR ELSE SHE WOULD TELL ALL ON NOW IT CAN BE TOLD AFTER MR MCMAHON DECLINED HE LEARNED THAT THE TAPES HAD BEEN FABRICATED THE SUIT MAINTAINS AND HE TOLD TRIBUNE'S GENERAL COUNSEL WHO THEN TOLD PRODUCER SKULSKI WHO THEN TOLD WRESTLER SHULTS BUT THE PROGRAM WENT AHEAD ANYWAY INCLUDING MS CHATTERTON'S ACCUSATIONS THEN MR RIVERA RETREADED THE SEGMENT ON THE APRIL 10 1992 EDITION OF GERALDO THE SUIT SAYS AFTER THE PROGRAMS WERE BROADCAST NO LAWSUIT WAS EVER FILED AGAINST THE MCMAHONS NOR DID THEY EVER HEAR FROM MS CHATTERTON OR HER LAWYER THE SUIT ALLEGES A SPOKESMAN FOR MR RIVERA CALLED THE CHARGES ABSURD THE TALKSHOW HOST HADN'T YET SEEN THE LAWSUIT YESTERDAY BUT HE SEEMED UNFAZED ISSUING A STATEMENT PACKED WITH APPROPRIATE METAPHORS IT'S A MARK OF HONOR TO BE SUED BY THE WWF I WILL BODY SLAM THEM IN COURT 9302120075 930212 MARKETING & MEDIA ADVERTISING SMALL SHOP MULLEN ADVERTISING WINS BMW OF NORTH AMERICA BY KEVIN GOLDMAN BMW OF NORTH AMERICA SURPRISED MADISON AVENUE BY UNEXPECTEDLY TAPPING LITTLEKNOWN MULLEN ADVERTISING A SMALL AGENCY IN SUBURBAN BOSTON TO HANDLE ITS COVETED 80 MILLIONPLUS ACCOUNT THE UNEXPECTED WIN ENDS ONE OF THE MORE SUDDEN AND UNUSUAL ACCOUNT REVIEWS WHICH BEGAN LAST OCTOBER WHEN BMW EFFECTIVELY ENDED AN 18YEAR RELATIONSHIP WITH INCUMBENT AMMIRATI & PURISCREATOR OF SLEEK AND CLASSY ADS WITH THE SLOGAN THE ULTIMATE DRIVING MACHINE BY PUTTING THE WORK UP FOR REVIEW AMMIRATI SUMMARILY QUIT WITH THE PRESTIGIOUS ACCOUNT NOW IN ITS GRIP MULLEN FACES A TASK FAR BEYOND ANYTHING THE 23YEAROLD AGENCY HAS TAKEN ON BEFORE IT HAS ANNUAL BILLINGS OF A MERE 108 MILLION AND HANDLES SUCH LESSERKNOWN CLIENTS AS LINDT & SPRUNGLI LTD CHOCOLATES REEBOK'S WEEBOK SHOES FOR KIDS AND SUFFOLK DOWNS RACETRACK MULLEN ALSO HANDLES DOMESTIC ADVERTISING FOR ROLLSROYCE MOTOR CARS AND THE EXOTIC LUXURY AUTOMAKER SAYS IT DOESN'T FORESEE A CONFLICT IN MULLEN NOW ASSUMING CREATIVE DUTIES FOR BMW THE SMALL AGENCY MUST IMPLEMENT A DEFT CAMPAIGN THAT RETAINS THE PRESTIGE OF THE BMW BADGE WHILE TRYING TO BROADEN THE PRODUCT TO A WIDER AUDIENCE SAYS SUSAN JACOBS AN ANALYST WITH JACOBS AUTOMOTIVE AN AUTOMOBILE FORECASTING CONSULTING FIRM LAST YEAR SHE SAYS BMW SALES ROSE 23 TO 65693 AUTOS SOLD IN THE US WHILE LUXURY IMPORTS OVERALL ROSE 3 MS JACOBS SAYS MULLEN SHOULD CONTINUE THE STRATEGY BEGUN RECENTLY BY AMMIRATI THAT SHIFTED THE ADS FROM STRESSING LIFESTYLE TO SAFETY AND PRODUCT ORIENTATION ONE RECENT HEADLINE IN A BMW AD FOR INSTANCE SAID WHILE AN AUTOMOBILE CAN'T HAVE INSTINCTS IT CAN MAKE THE MOST OF YOURS THE PRINT AD TRUMPETED BMW'S TECHNOLOGY AND IN CONTRAST TO PAST ADS THAT EMPHASIZED AN UPSCALE LIFESTYLE DOESN'T SHOW SOMEONE DRIVING ALONG THE BEACH TO SIP COCKTAILS OR PLAY TENNIS RECENT BMW TELEVISION ADS HAVE TAKEN PLACE AT A SAFETY DRIVING SCHOOL CLEARLY THE AUTOMOBILE WANTS TO SHED ITS IMAGE FROM THE HIGH FLYING 1980S WHEN IT EMBODIED THE CAREFREE SPENDING OF THE YUPPIE GENERATION AND WAS REFERRED TO AS THE BEEMER SOME 30 AGENCIES HAD RUSHED IN TO APPLY FOR THE BMW JOB AFTER AMMIRATI BALKED AT TAKING PART IN THE REVIEW BY THE TIME THE US UNIT OF GERMANY'S BAYERISCHE MOTOREN WERKE AG WAS READY TO PICK A FINAL SHOP MULLEN WAS STILL IN CONSIDERATION WITH FOUR OTHER CONTENDERS BETHESDA MD SHOP EARLE PALMER BROWN AND NEW YORK AGENCIES MCCAFFREY & MCCALL TBWA ADVERTISING AND MCCABE & CO WHILE MULLEN WILL DESIGN A NEW AD CAMPAIGN FOR BMW DEWITT MEDIA WON THE MEDIA BUYING PORTION OF THE ACCOUNT IT CURRENTLY ALSO HANDLES MEDIA BUYING FOR MASTERCARD INTERNATIONAL AND REEBOK INTERNATIONAL LTD MULLEN AND BMW WERE PLAYING A BIT COY IN DISCUSSING JUST HOW THE AGENCY OF 140 EMPLOYEES WON THE ACCOUNT ANN ZARCARIAN BMW'S MARKETING COMMUNICATIONS MANAGER SAYS SIMPLY THAT MULLEN PRESENTED GREAT CREATIVE AND GREAT STRATEGIC PLANNING IN ARTICULATING THE DIRECTION WHERE THE COMPANY SHOULD BE HEADING JAMES X MULLEN THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IS AN AUTOMOBILE COLLECTOR IN HIS OWN RIGHT WHICH MAY HAVE HELPED THERE ARE A LOT OF ASPECTS TO BMW THAT ARE UNDERAPPRECIATED HE SAID IN AN INTERVIEW MULLEN HAD BETTER WORK FAST NEW ADS WILL BE RELEASED IN THE SECOND QUARTER TO LAUNCH BMW'S NEW V8 POWERED 5SERIES MODELS AND A FEW OTHER NEW ENTRIES IT ISN'T CLEAR HOW PROMINENTLY THE ULTIMATE DRIVING MACHINE SIGNATURE COINED BY MULLEN'S PREDECESSOR WILL FIGURE IN THE NEW WORK BMW ADVERTISING DOESN'T NEED A NEW LOOK WE'RE NOT READY TO DROP THE SLOGAN ON A DIME SAYS MS ZARCARIAN ALTHOUGH BMW AND MULLEN DECLINED COMMENT ONE PERSON WITH KNOWLEDGE OF THE PROCESS SAYS THE FOLLOWING SLOGANS WERE AMONG THOSE SUBMITTED BY THE COMPETING AGENCIES THE ULTIMATE DRIVING EXPERIENCE WHICH IS BMW'S TAGLINE IN CANADA DRIVING IS BELIEVING AND DRIVE ON A HIGHER LEVEL BMW'S DECISION FOLLOWED A DAYLONG SERIES OF BACKTOBACK PRESENTATIONS LAST THURSDAY AT BMW'S NORTH AMERICAN HEADQUARTERS IN WOODCLIFF LAKE NJ THE FINAL DECISION WASN'T MADE UNTIL LATE WEDNESDAY NIGHT WHEN MULLEN CHIEF OPERATING OFFICER JOSEPH M GRIMALDI WAS TELEPHONED AND TOLD TO MEET WITH BMW EXECUTIVES YESTERDAY THE FOUR OTHER AGENCIES WERE TOLD THEY HAD LOST IN A MESSAGE SENT BY FAX I WASN'T GOING TO GET ON THE PHONE FOUR TIMES AND DEBRIEF EVERYONE MS ZARCARIAN SAYS MULLEN WAS THE CLEAR WINNER THERE WAS NO SECOND PLACE IF THAT SOUNDS COLD IT ISN'T MEANT TO MR MULLEN SAYS HE DOESN'T ANTICIPATE ANY NEED TO OPEN A NEW OFFICE TO HANDLE THE ACCOUNT THE AGENCY IS SITUATED IN A MANSION ENCOMPASSING 79000 SQUARE FEET ON 50 ACRES OF LAND IN WENHAM MASS OUR GOAL MR MULLEN SAYS ISN'T TO RUSH OFF AND DO SOMETHING TOTALLY DIFFERENT THAN OUR PREDECESSOR IT'S TO STEP INTO THEIR GIGANTIC SHOES AND KEEP ON GOING GENERAL MOTORS CORP SAID IT HAS DECIDED TO RENEW ADVERTISING ON NBC NEWS ENDING A THREEDAY HIATUS DURING A PUBLIC FIGHT IN WHICH GM ACCUSED NBC OF RIGGING A DEMONSTRATION OF A FIERY CRASH INVOLVING A GM TRUCK GM SAID IT DECIDED TO MOVE ADS FROM NBC'S NEWS PROGRAMS TEMPORARILY TO ITS SPORTS AND ENTERTAINMENT PROGRAMS BEFORE THE GM NEWS CONFERENCE ON MONDAY AT WHICH THE AUTO MAKER WENT PUBLIC WITH ITS CHARGES THE TWO PARTIES REACHED A DECISION LATE TUESDAY TO SETTLE OUT OF COURT BASED UPON NBC NEWS'S FULL DISCLOSURE OF FACTS AND ITS APOLOGY ON DATELINE NBC' WE ARE REINSTATING OUR ADVERTISING IMMEDIATELY GM SAID IN A STATEMENT GM SPOKESMAN SAID THE SHIFT WASN'T A RETALIATION AGAINST NBC BUT INSTEAD WAS AN ORDINARY PRECAUTION THAT NEWS SPONSORS OFTEN TAKE WHEN NEWS BREAKS THAT COULD UNDERCUT THE VALUE OF THEIR ADS THE NEWS WAS VERY NEGATIVE THE SPOKESMAN SAID WE DIDN'T FEEL IT WAS CONDUCIVE TO ADVERTISING GM WAS CONSIDERING DOING THE SAME ON OTHER NETWORKS HE SAID BUT NEVER HAD TO MAKE THE DECISION THE WHOLE THING WAS OVER BEFORE WE STARTED THE BULK OF THE AUTO MAKER'S NETWORK AD DOLLARS HAS BEEN SPENT ON SPORTS AND ENTERTAINMENT PROGRAMS NBC IS A UNIT OF GENERAL ELECTRIC CO TWO TOP OFFICERS AT GEER DUBOIS INC SAID THEY ARE ABANDONING PLANS TO BUY OUT THE NEW YORK SHOP EFFECTIVELY SHUTTING THE AGENCY'S DOORS IN THE WAKE OF LOSING THE BAILEYS IRISH CREAM ACCOUNT THE NEWS COMES AT THE END OF A YEAR IN WHICH THE 46YEAROLD SHOP SAW BOTH AN ESTIMATED 60 MILLION IN BILLINGS AND ITS PRESIDENT WALK OUT THE DOOR THOSE ACCOUNTS INCLUDED BROWN & WILLIAMSON CIGARETTES JAGUAR CARS AND ON WEDNESDAY BAILEYS A LIQUEUR OF GRAND METROPOLITAN'S PADDINGTON CORP THE AGENCY HIRED A NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER LAST YEAR STEVEN BOWEN WHO HAD PLANNED WITH CHAIRMAN RODNEY UNDERWOOD TO BUY THE AGENCY FROM PETER GEER THE SON OF ITS FOUNDERS AND REVIVE ITS FORTUNES YESTERDAY MR BOWEN SAID THEY HAD DETERMINED THE PLAN WAS AN UNVIABLE VENTURE THE AGENCY'S EXISTING CLIENTS INCLUDE YOOHOO MAKER AUSTIN NICHOLS & CO NEW YORK MERIDIEN HOTELS NEW YORK NORTHROP CORP LOS ANGELES AND BASF CORP PARSIPPANY NJ ITS 55 EMPLOYEES ARE EXPECTED TO GET PINK SLIPS TOMORROW WHO'S NEWS PETER STRINGHAM PRESIDENT OF OMNICOM GROUP'S MCKIM BAKER LOVICK/BBDO WAS NAMED CHIEF EXECUTIVE OFFICER OF THE AGENCY MR STRINGHAM AGE 44 SUCCEEDS JIM ANDERSON AGE 56 WHO REMAINS CHAIRMAN AND WILL BE AVAILABLE TO THE AGENCY AND ITS CLIENTS ON AN ADVISORY BASIS ACCORDING TO AN AGENCY STATEMENT MCKIM BAKER LOVICK/BBDO CANADA'S BIGGEST AD AGENCY WAS FORMED LAST YEAR BY THE MERGER OF MCKIM ADVERTISING WHICH MR ANDERSON HAD HEADED FOR A DECADE OR MORE AND OMNICOM'S BAKER LOVICK UNIT OF WHICH MR STRINGHAM WAS PRESIDENT 9302120074 930212 MARKETING & MEDIA MCCORMICK IS NAMED PRESIDENT OF PARENT OF LIFETIME CHANNEL NEW YORK DOUGLAS W MCCORMICK WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF HEARST/ABCVIACOM ENTERTAINMENT SERVICES THE VENTURE THAT RUNS THE LIFETIME CABLE CHANNEL MR MCCORMICK 43 YEARS OLD FILLS THE POSITION LEFT BY THOMAS BURCHILL HIS FORMER BOSS WHO LEFT IN JANUARY TO BUY A STAKE IN PETRY INC AND BECOME PRESIDENT OF THE TV STATION CONSULTING FIRM MR MCCORMICK'S APPOINTMENT FOLLOWS AN INTERNAL DEBATE ABOUT WHETHER OR NOT A CABLE NETWORK THAT TARGETS A FEMALE AUDIENCE SHOULD BE RUN BY A WOMAN BUT MR MCCORMICK BELIEVES HE CAN FILL THE ROLE REGARDLESS OF GENDER I'VE BEEN HERE FOR 10 YEARS AND I STARTED OUT IN SALES HE SAYS I'M THRILLED NOW TO BE IN THIS POSITION WORKING WITH THIS GROUP OF PEOPLE MR MCCORMICK BEGAN HIS CABLE CAREER IN 1982 AT VIACOM'S CABLE HEALTH NETWORK WHICH MERGED WITH HEARST/ABC VIDEO SERVICES' DAYTIME NETWORK TO FORM THE LIFETIME NETWORK IN 1984 HE SERVED AS GROUP VICE PRESIDENT OF THE VENTURE AND MOST RECENTLY SERVED AS EXECUTIVE VICE PRESIDENT OF LIFETIME SINCE SEPTEMBER 1990 LIFETIME IS OWNED AND OPERATED BY THE HEARST CORP CAPITAL CITIES/ABC INC AND VIACOM INC 9302120073 930212 TECHNOLOGY & HEALTH HILLARY CLINTON VISITS PENNSYLVANIA TO CONFER ON HEALTHCARE PROBLEMS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL HARRISBURG PA HILLARY RODHAM CLINTON TOOK TO THE ROAD TO TALK AND LEARN ABOUT HEALTH CARE CHATTING WITH PATIENTS AT A PHILADELPHIA HOSPITAL AND DISCUSSING THE COMPLEXITIES OF THE SUBJECT FOR MORE THAN THREE HOURS AT A CONFERENCE HERE ADDRESSING SOME 200 INVOLVED IN THE HEALTH SYSTEM FROM DOCTORS AND HOSPITAL EXECUTIVES TO EMPLOYEEBENEFITS MANAGERS AND REGULAR PATIENTS THE FIRST LADY REAFFIRMED PRESIDENT CLINTON'S VOW TO COME UP WITH A PLAN TO RESTRUCTURE THE NATION'S HEALTH SYSTEM BY MAY THERE IS ABSOLUTE COMMITMENT TO DOING WHAT IS NECESSARY DESPITE HOW TOUGH IT WILL BE TO PRESENT LEGISLATION IN MAY SHE SAID MRS CLINTON'S VISIT IS THE FIRST OF MANY TRIPS SHE PLANS TO TAKE OUTSIDE WASHINGTON TO FOCUS ATTENTION ON OVERHAULING THE HEALTH SYSTEM THE WHITE HOUSE IS HOPING FUTURE VISITS WILL GENERATE THE SAME PUBLICITY AND HELP WIN SUPPORT FOR THE ADMINISTRATION'S PLAN MRS CLINTON WAS ACCOMPANIED YESTERDAY BY TIPPER GORE WHO IS THE WIFE OF VICE PRESIDENT ALBERT GORE AND WHO IS WORKING ON MENTALHEALTH ISSUES AS PART OF THE HEALTH TASK FORCE THAT MRS CLINTON HEADS THE CONFERENCE AT PENN STATE UNIVERSITY'S HARRISBURG CAMPUS WAS ORGANIZED BY SEN HARRIS WOFFORD THE DEMOCRAT WHO UPSET FORMER ATTORNEY GENERAL DICK THORNBURGH IN 1991 BY CAMPAIGNING RELENTLESSLY ON THE HEALTHCARE ISSUE THE SESSION ORIGINALLY WAS PLANNED AS A LOCAL EVENT BUT BECAME A MEDIA EXTRAVAGANZA WITH MRS CLINTON'S RECENT ACCEPTANCE OF AN INVITATION MRS CLINTON OFFERED NO DETAILS OF HER TASK FORCE'S DELIBERATIONS BUT LIKE HER HUSBAND SHE SEEMED TO FOCUS ON THE COST OF HEALTH CARE AND WARNED THAT WE HAVE TO RECOGNIZE THAT THERE WILL BE CHANGES IN THE DELIVERY AND FINANCING OF HEALTH CARE IF WE ARE TO CONTROL COSTS BUT SHE SAID IT WON'T DO ANY GOOD TO EXPAND ACCESS AND CONTROL MEDICAL COSTS IF ALL WE DO IS BURDEN BUSINESS SHE ADDED WE DON'T JUST HAVE A HUMAN COMPASSION PROBLEM WE HAVE A BUSINESS ECONOMIC PROBLEM HOWEVER SHE SIGNALED HER INTENTION TO TAKE ON SOME BIG BUSINESS INTERESTS IN THE HEALTHCARE FIELD CITING STEEP INCREASES IN THE PRICE OF VACCINES IN RECENT YEARS SHE SAID UNLESS YOU'RE WILLING TO TAKE ON THOSE WHO PROFITED FROM THAT PRICE INCREASE AND CONTINUE TO DO SO YOU CAN'T HAVE THE KIND OF UNIVERSAL IMMUNIZATION SYSTEM WE NEED IN WASHINGTON HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA HAS CHOSEN SEVERAL OF HER TOP ADMINISTRATORS AND FORWARDED THEIR NAMES TO THE WHITE HOUSE WHERE THEY ARE EXPECTED TO BE APPROVED MS SHALALA WANTS HER CHIEF DEPUTY TO BE WALTER BROADNAX A VETERAN FROM THE CARTER ADMINISTRATION HIS SELECTION INDICATED THAT MS SHALALA APPEARS TO HAVE WON A FIGHT AGAINST VICE PRESIDENT GORE WHO WAS SAID TO BE LOBBYING ON BEHALF OF A FRIEND FORMER REP THOMAS DOWNEY FOR THAT POST MEANWHILE BRUCE VLADECK PRESIDENT OF THE UNITED HOSPITAL FUND OF NEW YORK IS TO HEAD THE HEALTH CARE FINANCING ADMINISTRATION WHICH RUNS THE MEDICARE AND MEDICAID PROGRAMS IN ADDITION FERNANDO TORRESGIL WHO IS ON THE PLANNING COMMISSION IN LOS ANGELES IS TO HEAD THE COMMISSION ON THE AGING JIM MONGAN WHO ALSO WORKED IN THE CARTER ADMINISTRATION IS TO BE ASSISTANT SECRETARY FOR HEALTH DAVID ELWOOD OF THE KENNEDY SCHOOL OF GOVERNMENT IS TO BE ASSISTANT SECRETARY FOR PLANNING AND EVALUATION AND MARY JO BANE THE COMMISSIONER OF THE NEW YORK SOCIAL SERVICES DEPARTMENT IS TO BE ASSISTANT SECRETARY FOR HUMAN DEVELOPMENT SERVICES 9302120072 930212 MARKETING & MEDIA ABC GETS HUGE AUDIENCE FOR ITS JACKSON INTERVIEW NEW YORK MICHAEL JACKSON MAY SEEM TO BE EVERYWHERE BUT VIEWERS DON'T APPEAR TO MIND HIS 90MINUTE LIVE INTERVIEW WEDNESDAY NIGHT WITH TALKSHOW HOST OPRAH WINFREY WAS THE HIGHESTRATED ENTERTAINMENT SHOW IN SIX YEARS THE ABC SPECIAL DREW 393 OF THE 931 MILLION US HOMES WITH TV SETS AND A 56 SHARE OF THOSE WATCHING TV AT THE TIME ABC HAD EXPECTED THE PROGRAM TO DO WELL BUT NOT THAT WELL THE NETWORK A UNIT OF CAPITAL CITIES/ABC INC HAD PROJECTED THE SHOW WOULD GET A 35 TO 40 SHARE OF THE AUDIENCE THAT MEANS ADVERTISERS IN THE PROGRAM MAY HAVE GOTTEN AN UNEXPECTED BONUS OF SEVERAL MILLION VIEWERS MORE THAN THE PROJECTED AUDIENCE THEY HAD PAID ABC TO REACH BASED ON THE 393 RATING THE SHOW WAS THE HIGHESTRATED ENTERTAINMENT PROGRAM SINCE A JAN 22 1987 EPISODE OF ABC'S THE COSBY SHOW BUT BASED ON THE TOTAL HOUSEHOLDS THAT TUNED IN AN ESTIMATED 365 MILLION THE SHOW WAS THE FOURTHMOSTWATCHED ENTERTAINMENT PROGRAM SINCE 1960 BEATEN ONLY BY THE FINAL EPISODE OF MASH AN EPISODE OF DALLAS AND THE ABC NUCLEAR HOLOCAUST MOVIE THE DAY AFTER 9302120071 930212 GE KEEPS KIDDER FROM FORMING DERIVATIVES UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GENERAL ELECTRIC CO IS BLOCKING ITS KIDDER PEABODY GROUP INC BROKERAGE SUBSIDIARY FROM SETTING UP A SEPARATE DERIVATIVES UNIT EVEN AS OTHER BIG INVESTMENT BANKS RUSH INTO THIS LUCRATIVE BUSINESS PEOPLE FAMILIAR WITH KIDDER SAID GE WHICH HAS OWNED KIDDER SINCE 1986 SO FAR HAS BALKED AT PUTTING UP THE MORE THAN 100 MILLION OF CAPITAL REQUIRED TO LAUNCH SUCH A UNIT DESPITE REQUESTS BY KIDDER EXECUTIVES THE PEOPLE SAID WALL STREET INVESTMENT BANKS ARE SCRAMBLING TO SET UP STANDALONE DERIVATIVES UNITS AND WITH GOOD REASON BY LAUNCHING SEPARATELY CAPITALIZED SUBSIDIARIES TO TRADE SWAPS OPTIONS AND OTHER DERIVATIVE PRODUCTS WALL STREET FIRMS AND COMMERCIAL BANKS HAVE BEEN ABLE TO SNARE COVETED TRIPLEA CREDIT RATINGS FOR THE UNITS MANY INTERNATIONAL INVESTORS AND CORPORATIONS WON'T ENGAGE IN DERIVATIVE TRANSACTIONS WITH DEALERS WITH LOWER THAN TRIPLEA RATINGS BIG INVESTMENT BANKS MERRILL LYNCH & CO GOLDMAN SACHS & CO AND SALOMON INC HAVE EACH SET UP SEPARATE WELLCAPITALIZED DERIVATIVES UNITS MERRILL GAVE ITS UNIT ABOUT 350 MILLION IN CAPITAL SALOMON'S UNIT SET UP THIS WEEK WILL START WITH 175 MILLION WITH A PROMISE BY THE FIRM TO PROVIDE MORE MONEY IF NEEDED GE REFERRED INQUIRIES TO KIDDER WHICH DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH THE MATTER SAY KIDDER STILL MAY BE ABLE TO LAUNCH A DERIVATIVES UNIT IF IT MANAGES TO OBTAIN A TOP CREDIT RATING FOR THE ENTIRE BROKERAGE FIRM KIDDER CURRENTLY ISN'T RATED BY STANDARD & POOR'S CORP A UNIT OF MCGRAWHILL INC A TOPNOTCH RATING FOR KIDDER COULD ALLOW GE TO PUT UP A RELATIVELY SMALL AMOUNT OF CAPITAL TO LAUNCH A DERIVATIVES UNIT FAILING TO SET UP A DERIVATIVES UNIT WOULD BE A BLOW TO KIDDER DERIVATIVES HAVE BECOME A BIG MONEYMAKER FOR WALL STREET ROUGHLY ONETHIRD OF ALL NEW BOND UNDERWRITINGS INVOLVE DERIVATIVES PARTICULARLY INTERESTRATE AND CURRENCY SWAPS WALL STREET EXECUTIVES SAY IN MANY BOND UNDERWRITINGS FOR INSTANCE ISSUERS OFTEN SWAP THE FIXEDRATE INTEREST PAYMENTS ON NEW BONDS FOR FLOATINGRATE PAYMENTS OR SHIFT FROM DOLLARDENOMINATED BONDS INTO OTHER CURRENCIES KIDDER HAS BEEN IN TALKS WITH OFFICIALS AT STANDARD & POOR'S A CREDITRATING AGENCY FOR MORE THAN A YEAR TO WORK OUT A STRUCTURE FOR A DERIVATIVES SUBSIDIARY PEOPLE FAMILIAR WITH THE MATTER SAY BUT GE HAS RESISTED GIVING KIDDER THE CAPITAL NEEDED TO START THE SUBSIDIARY THE PEOPLE SAY PARTLY BECAUSE IT IS UNWILLING TO RISK ITS OWN TRIPLEA CREDIT RATING ANALYSTS AREN'T SURPRISED THAT GE IS RELUCTANT TO PUMP MORE CAPITAL INTO KIDDER THE FAIRFIELD CONN CONGLOMERATE ALREADY HAS INJECTED NEARLY 1 BILLION INTO THE BROKERAGE UNIT PEOPLE FAMILIAR WITH KIDDER SAY INCLUDING 602 MILLION GE SPENT TO BUY KIDDER UNTIL RECENTLY KIDDER HASN'T GENERATED MUCH PROFIT IN RETURN THOUGH LAST YEAR KIDDER OFFICIALS SAY THE FIRM EARNED RECORD OPERATING PROFIT OF MORE THAN 300 MILLION AMID WALL STREET'S BOOM LAST YEAR GE TRIED UNSUCCESSFULLY TO SELL PART OF KIDDER TO PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO BROKERAGE UNIT GE WOULD BE RELUCTANT TO INJECT MORE CAPITAL INTO KIDDER IF THE PARENT STILL HAS PLANS TO SELL THE BROKERAGE UNIT WALL STREET EXECUTIVES SAY A STELLAR CREDIT RATING IS MORE IMPORTANT THAN EVER THESE DAYS IN THE MARKET FOR DERIVATIVES WHICH ARE HYBRID CUSTOMIZED SECURITIES THAT MOVE IN RELATION TO AN UNDERLYING INDEX STOCK BOND CURRENCY OR COMMODITY FOR INVESTMENT BANKS THAT DON'T SET UP TRIPLEA DERIVATIVES UNITS YOUR RANGE OF POTENTIAL COUNTERPARTIES ON SWAPS IS MUCH MORE LIMITED SAYS ROGER TAILLON A MANAGING DIRECTOR IN THE STRUCTUREDFINANCE GROUP AT S&P ANOTHER BIG BROKERAGE FIRM SHEARSON LEHMAN BROTHERS INC HAS BEEN WORKING FOR MORE THAN A YEAR TO SET UP A DERIVATIVES UNIT BUT AMERICAN EXPRESS CO SHEARSON'S PARENT ALSO HAS BEEN RELUCTANT TO INJECT CAPITAL INTO SHEARSON FOR THE UNIT PEOPLE FAMILIAR WITH SHEARSON SAY A SHEARSON SPOKESMAN DECLINED TO COMMENT BUT A SENIOR SHEARSON OFFICIAL SAID THAT IF SHEARSON CAN'T GET THE CAPITAL FROM AMERICAN EXPRESS IT COULD REDEPLOY THE NEEDED MONEY FOR A DERIVATIVES SUBSIDIARY FROM OTHER PARTS OF SHEARSON CREATING A DERIVATIVES UNIT IS A CENTRAL PART OF OUR GAME PLAN AND ONE IS LIKELY TO BE LAUNCHED THIS YEAR THE SHEARSON OFFICIAL SAID SOME BIG COMMERCIAL BANKS HAVE MET OBSTACLES IN TRYING TO SET UP TRIPLEARATED DERIVATIVES UNITS BANKERS SAY THAT BOTH CITICORP AND CONTINENTAL BANK CORP WERE PRESSURED BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY TO WITHDRAW THEIR APPLICATIONS TO SET UP SEPARATE DERIVATIVES SUBSIDIARIES BANK REGULATORS ARE CONCERNED ABOUT THOSE BANKS USING UP PRECIOUS CAPITAL AND ABOUT ASSISTING THE BANKS IN GETTING SIGNIFICANTLY HIGHER CREDIT RATINGS FOR DERIVATIVES UNITS THAN THE RATINGS OF THE PARENT BANK FOR KIDDER ANOTHER POSSIBLE WAY TO SET UP A DERIVATIVES UNIT WOULD BE TO HAVE GE LEND ABOUT 100 MILLION TO KIDDER TO USE AS CAPITAL ACCORDING TO S&P PRESIDENT LEO O'NEILL BUT IF GE DOES THAT MR O'NEILL SAYS GE STILL WOULD PROBABLY REQUIRE REPAYMENT AS IT WOULD IN ANY OTHER LOAN STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE 9302120070 930212 WHO'S NEWS OCCIDENTAL APPOINTS SUBSIDIARY'S PRESIDENT TO ADDITIONAL POSTS LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID DAVID HENTSCHEL WILL RETIRE AS CHAIRMAN AND CHIEF EXECUTIVE OF ITS OCCIDENTAL OIL & GAS CORP SUBSIDIARY EFFECTIVE APRIL 30 DAVID R MARTIN 61 YEARS OLD WILL SUCCEED MR HENTSCHEL 59 AND WILL CONTINUE TO SERVE AS PRESIDENT OF THE UNIT JIM NIEHAUS 48 EXECUTIVE VICE PRESIDENT OF OCCIDENTAL OIL & GAS HAS BEEN NAMED PRESIDENT OF OXY USA INC MEL FISCHER 59 EXECUTIVE VICE PRESIDENT OF OCCIDENTAL OIL & GAS WAS NAMED PRESIDENT OF OCCIDENTAL INTERNATIONAL EXPLORATION & PRODUCTION CO LEON DANIEL 56 EXECUTIVE VICE PRESIDENT OF OCCIDENTAL OIL & GAS WAS NAMED TO THE NEW POSITION OF PRESIDENT OF OCCIDENTAL ENGINEERING SERVICES CO ALL THREE EXECUTIVES WILL REPORT TO MR MARTIN OCCIDENTAL ALSO SAID ITS DIRECTORS VOTED TO REDUCE THE SIZE OF THE BOARD TO A MINIMUM OF 10 MEMBERS AND A MAXIMUM OF 14 THE BOARD'S SIZE CURRENTLY CAN RANGE FROM 14 TO 17 DIRECTORS OCCIDENTAL'S BOARD NOW CONSISTS OF 15 MEMBERS 10 OF WHOM ARE OUTSIDE DIRECTORS MR HENTSCHEL'S RETIREMENT WILL REDUCE THE BOARD'S SIZE TO 14 SEPARATELY THE OIL AND CHEMICALS COMPANY SAID IT WILL REDEEM ON MARCH 15 ALL ITS OUTSTANDING 5895 MILLION PRINCIPAL AMOUNT OF 10 7/8 SENIOR NOTES DUE 1996 THE COMPANY SAID THE MOVE IS PART OF AN OVERALL PLAN TO REDUCE THE COST OF ITS DEBT ALSO THE COMPANY'S MALAYSIAN SUBSIDIARY SIGNED A MEMORANDUM OF UNDERSTANDING WITH A UNIT OF NIPPON OIL AND THE MALAYSIAN NATIONAL OIL COMPANY PETRONAS TO STUDY A NEW LIQUEFIED NATURAL GAS PROJECT IF THE PROJECT GOES FORWARD PETRONAS WILL HOLD A 70 INTEREST IN THE VENTURE WITH OCCIDENTAL AND NIPPON OIL SHARING THE REMAINING 30 THE VENTURE IS EXPECTED TO BE FORMED BY YEAR'S END 9302120069 930212 POLITICS & POLICY CLINTON AGAIN CRITICIZES EXCESSIVE' CORPORATE PAY WASHINGTON PRESIDENT CLINTON SAID HE WILL KEEP HIS CAMPAIGN PROMISE TO USE THE TAX CODE TO DISCOURAGE EXCESSIVE CORPORATE SALARIES THE TAX CODE SHOULD NO LONGER SUBSIDIZE EXCESSIVE PAY OF CHIEF EXECUTIVES AND OTHER HIGH EXECUTIVES THE PRESIDENT TOLD A GROUP OF BUSINESS LEADERS AT THE WHITE HOUSE HE DEFINED EXCESSIVE AS HIGH SALARIES THAT AREN'T JUSTIFIED BY THE PRODUCTIVITY OF THE ENTERPRISE DURING THE CAMPAIGN MR CLINTON SAID HE WOULD ASK CONGRESS TO PROHIBIT COMPANIES FROM DEDUCTING SALARIES IN EXCESS OF 1 MILLION COMPANIES NOW MAY DEDUCT SALARIES WITHOUT LIMIT BUT MR CLINTON'S SPOKESMAN GEORGE STEPHANOPOULOS SAID YESTERDAY THAT THE PRESIDENT BELIEVES THAT IF COMPANIES ARE DOING WELL IF THEY ARE PRODUCTIVE YOU SHOULDN'T NECESSARILY PENALIZE THE CHIEF EXECUTIVES HE SAID THE ADMINISTRATION IS LOOKING FOR A WAY TO ENCOURAGE COMPANIES TO TIE EXECUTIVE PAY TO PERFORMANCE THE ISSUE MR CLINTON SAID HAS GREAT SIGNIFICANCE TO THE AMERICAN WORKING PEOPLE 9302120068 930212 MEDIA TURNER'S SEARCH FOR A PARTNER INCLUDES ABC BY DANIEL PEARL AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL TURNER BROADCASTING SYSTEM INC HAS HELD HIGHLEVEL TALKS WITH CAPITAL CITIES/ABC INC AND OTHER MEDIA COMPANIES RECENTLY AND HAS DISCUSSED POSSIBLE MERGERS ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE SITUATION BUT FEDERAL REGULATIONS AND TURNER'S COMPLEX OWNERSHIP STRUCTURE ARE MAKING IT DIFFICULT FOR THE CABLE PROGRAMMING GIANT TO PURSUE A MERGER WITH A NETWORK YES TURNER WOULD LIKE TO DO SOMETHING WITH CAPITAL CITIES/ABC INCLUDING POSSIBLY A FULL MERGER ONE TURNER INSIDER SAID BUT HE AND OTHERS SAID IT'S UNLIKELY THAT WILL HAPPEN ANOTHER TURNER INSIDER SAID THE MAIN FOCUS OF THE TURNERABC TALKS IS PROBABLY COOPERATION ON SPORTING EVENTS SPECULATION ABOUT A POSSIBLE TRANSACTION INVOLVING CAPITAL CITIES BEGAN WHEN IT SAID IN DECEMBER THAT AT SOME POINT IT HOPES TO MAKE A MAJOR ACQUISITION IN THE 5 BILLION TO 8 BILLION PRICE RANGE TURNER REPORTEDLY HAS ALSO HAD DISCUSSIONS WITH PARAMOUNT COMMUNICATIONS INC AND CBS INC NONE OF THE COMPANIES INVOLVED WOULD COMMENT AND IT WAS UNCLEAR HOW SERIOUSLY TURNER AND THE OTHERS DISCUSSED BUSINESS COMBINATIONS OR HOW A MERGER WOULD WORK PARAMOUNT INSIDERS ACKNOWLEDGE THE COMPANY HAS HAD FREQUENT TALKS WITH TURNER'S CHIEF EXECUTIVE OFFICER TED TURNER BUT THEY SAY THE LIKELIHOOD OF A DEAL APPEARS SLIM AT PRESENT PARAMOUNT ITSELF HAS REPORTEDLY HAD TALKS WITH CAPITAL CITIES AS WELL MR TURNER ASKED THIS WEEK ABOUT HIS INTEREST IN MERGING WITH A NETWORK SAID WE'RE LOOKING AT ALL KINDS OF THINGS WE'RE ALWAYS LOOKING AT NEW POSSIBILITIES HE ADDED WE DO BUSINESS WITH EVERYBODY IN THE ENTERTAINMENT BUSINESS AND FROM TIME TO TIME WE TALK WITH JUST ABOUT EVERYBODY THE WIDE SCOPE OF MR TURNER'S DISCUSSIONS SHOWS HOW EAGERLY HE WISHES TO GAIN NEW MEANS OF DISTRIBUTING HIS PROGRAMMING BUT IT ALSO SHOWS THAT HE REMAINS AT THE MERCY OF THE CABLE OPERATORS WHO RESCUED HIS COMPANY FROM A DEBT CRISIS IN 1987 AFTER TURNER ACQUIRED THE MGM FILM LIBRARY ONE PERSON FAMILIAR WITH THE ABC TALKS SAID SOME OF THE IDEAS UNDER DISCUSSION PROBABLY WOULDN'T HAVE A CHANCE UNLESS TIME WARNER INC SOLD ITS 189 STAKE IN TURNER BECAUSE OF FEDERAL LIMITS ON OWNERSHIP OF TELEVISION STATIONS AND CABLE NETWORKS IN THE SAME MARKET TIME WARNER IS THE DOMINANT CABLE OPERATOR IN NEW YORK WHERE ABC HAS A TELEVISION STATION AND TIME WARNER IS BEING VAGUE ABOUT ITS PLANS THE COMPANY SAID SEVERAL MONTHS AGO IT MIGHT MONETIZE OR TRY TO GENERATE CASH FROM ITS TURNER STAKE WHILE TURNER OFFICIALS INITIALLY DOUBTED TIME WARNER WOULD SELL THE STAKE THEY HAVE BECOME MUCH LESS CERTAIN RECENTLY PARTLY BECAUSE OF RECENT MANAGEMENT CHANGES AT TIME WARNER TURNER'S STOCK PRICE HAS BEEN FLAT FOR THE PAST YEAR AND NEW CABLE INDUSTRY REGULATIONS COULD LIMIT THE STRATEGIC VALUE OF TURNER FOR TIME WARNER TIME WARNER DECLINED TO COMMENT IN DETAIL BUT SAID IT IS UNDER NO PRESSURE TO SELL SUCH ASSETS AS ITS TURNER STAKE TELECOMMUNICATIONS INC IS ALSO IN A POSITION TO BLOCK A MERGER SINCE IT OWNS 225 OF TURNER AND CONTROLS THREE OF THE SEVEN SEATS THAT CABLE OPERATORS HOLD ON TURNER'S BOARD UNDER TURNER'S BYLAWS TCI AND THE OTHER CABLE INVESTORS WOULD HAVE THE RIGHT TO BUY TIME WARNER'S STAKE AT THE SAME PRICE ANY BUYER WOULD OFFER TCI DECLINED TO COMMENT BUT ITS CHIEF EXECUTIVE OFFICER JOHN MALONE IS SAID TO BE OPPOSED TO ANY MOVE THAT WOULD GIVE CONTROL OF TURNER TO A CABLEINDUSTRY COMPETITOR SUCH AS A BROADCAST NETWORK TURNER WOULD ALSO HAVE TO FIND A WAY AROUND RULES THAT BAR NETWORKS FROM FROM THE SYNDICATION BUSINESS INCLUDING THE SALE OF MOVIES FROM THEIR MOVIE LIBRARIES TURNER IS IN THAT BUSINESS STILL SINCE HIS UNSUCCESSFUL BID TO TAKE OVER CBS IN 1985 MR TURNER HAS SHOWN A RECURRING INTEREST IN EMBRACING A NETWORK IN 1988 TURNER BROADCASTING TRIED TO GET GE'S NATIONAL BROADCASTING CO UNIT TO BUY A 25 STAKE BUT THE TWO SIDES COULDN'T AGREE ON PRICE A FEW YEARS LATER MR TURNER IS SAID TO HAVE TAKEN A BRIEF LOOK AT CBS AGAIN TURNER IS STILL CARRYING SUBSTANTIAL DEBT FROM ITS 1986 ACQUISITION OF THE MGM FILM LIBRARY BUT THE COMPANY HAS GAINED PROFITABILITY IN THE LAST FEW YEARS IT POSTED NET INCOME OF 479 MILLION OR 19 CENTS A SHARE FOR THE MOST RECENT NINEMONTH PERIOD AND ITS STOCK IS TRADING AT A HIGHER PRICE/EARNINGS RATIO THAN CAPITAL CITIES' TURNER'S MARKET CAPITALIZATION IS ABOUT 6 BILLION COMPARED WITH ABOUT 82 BILLION FOR CAPITAL CITIES BY COMBINING WITH TURNER A NETWORK COULD REAP HUGE COST SAVINGS BY USING CABLE NEWS NETWORK FOOTAGE TO SUPPORT NETWORK NEWS REPORTS FOR TURNER HAVING A NETWORK ON WHICH TO PRESENT MOVIES AND SPORTS WOULD PUT IT IN A BETTER POSITION TO ACQUIRE FILM LIBRARIES AND BIGTICKET SPORTS EVENTS SUCH AS THE 1996 SUMMER OLYMPICS AND TO PRODUCE HIGHPROFILE MOVIES BUT SOME PEOPLE BELIEVE A MOVIE STUDIO SUCH AS PARAMOUNT IS A MORE NATURAL PARTNER FOR TURNER THE CABLE OPERATORS ON TURNER'S BOARD ARE MORE LIKELY TO EMBRACE A STUDIO THAN A NETWORK AND TURNER HAS BEEN ON THE PROWL FOR A STUDIO FOR SEVERAL YEARS PARTLY TO GET A DISTRIBUTION NETWORK THAT WOULD ALLOW TURNER TO RELEASE ITS TNT NETWORK'S ORIGINAL MOVIES IN US THEATERS 9302120067 930212 INTERNATIONAL RUSSIA SET TO SUPPLY IRAN CHINA WITH NUCLEAR PLANTS MOSCOW AP RUSSIA WILL CONSTRUCT NUCLEAR POWER PLANTS IN IRAN AND CHINA A SENIOR OFFICIAL SAID DEPUTY NUCLEAR ENERGY MINISTER VIKTOR SIDORENKO SAID NEGOTIATIONS WITH IRAN ARE IN THE FINAL STAGE HE SAID THAT WHILE WEAPONSGRADE MATERIAL COULD BE PRODUCED FROM THE PLANT'S SPENT FUEL IRAN WILL PLEDGE TO ABIDE BY INTERNATIONAL SUPERVISION AND NONPROLIFERATION NORMS THE IRANIANS HAVE CHOSEN AN IMPROVED VERSION OF THE SOVIETDESIGNED VVER PRESSURIZEDWATER REACTOR HE SAID US NUCLEAR EXPERTS SAY VVERS DON'T MEET WESTERN SAFETY STANDARDS BUT VVER REACTORS OPERATING IN FINLAND HAVE BEEN MODIFIED WITH WESTERN TECHNOLOGY AND ARE BELIEVED TO BE SAFER THAN THE ORIGINAL SOVIET TYPES RUSSIA ALSO HAS CONCLUDED AN INITIAL AGREEMENT WITH CHINA TO CONSTRUCT TWO MODERNIZED VVER REACTORS THERE MR SIDORENKO SAID SEPARATELY MR SIDORENKO SAID RUSSIA CAN'T AFFORD TO CLOSE ITS 15 AGING CHERNOBYLSTYLE REACTORS HE SAID THE NATION LACKS ALTERNATE SOURCES OF ENERGY RUSSIAN AND WESTERN ENVIRONMENTALISTS AND NUCLEAR EXPERTS HAVE DEMANDED THEIR CLOSING BUT YEVGENY ADAMOV A REACTOR DESIGNER SAID CLOSING COULD COST RUSSIA 60 BILLION IN LOST ENERGY 9302120066 930212 LOVE AFFAIRS BLOOM AMID BITS AND BYTES OF HOME COMPUTERS CUPID'S ELECTRONIC ARROWS HIT MANY PLUGGEDIN SENIORS JUST CALL IT DIALUPADATE BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL JOANN OAKES AND MAYER SOLEN FELL FOR EACH OTHER JUST BEFORE CHRISTMAS IN 1991 SHE HAD BEEN WATCHING FROM A DISTANCE AS MR SOLEN FLITTED FROM ONE GROUP OF FRIENDS TO ANOTHER GREETING ALL THE WOMEN AS HONEY AND THEY MATCHING HIM WITH DEAR FINALLY THE TWO BEGAN A CONVERSATION THEY DISCOVERED THEY WERE BOTH WIDOWED SHE AFTER A 35YEAR MARRIAGE AND HE AFTER 49 1/2 YEARS BOTH LOVED MEXICAN FOOD AND BALLROOM DANCING THEY TALKED ON AND ON NEVER NOTICING THAT EVERYONE ELSE HAD LEFT THE PARTY AT MIDNIGHT THEY SAID GOOD NIGHT TURNED OFF THEIR COMPUTERS AND WENT TO BED MR SOLEN IN CARSON CITY NEV AND MRS OAKES IN BAINBRIDGE WASH FROM THEN ON THEY TALKED NEARLY EVERY DAY OVER THE COMPUTER LAST MARCH MR SOLEN VISITED MRS OAKES IN WASHINGTON IN JUNE THE 64YEAROLD MRS OAKES DROVE TO NEVADA TO SEE MR SOLEN 76 I CAME DOWN HERE WITH THE IDEA OF JUST A VISIT I HAVEN'T BEEN BACK TO WASHINGTON SINCE SHE SAYS FOR MR SOLEN IT WAS LOVE AT FIRST BYTE BEFORE I EVER MET HER I HAD FALLEN IN LOVE HE SAYS COMPUTERS ARE PLAYING CUPID FOR WHAT SEEMS TO BE AN UNLIKELY TARGET A GENERATION THAT DIDN'T KNOW THE DIFFERENCE BETWEEN A MOUSE AND A MODEM UNTIL THEY REACHED 60 NOW OLDER ADULTS ARE PLUGGED IN TO INTERACTIVE NETWORKS LIKE SAN FRANCISCOBASED SENIORNET WHERE THEY CAN EXCHANGE GARDENING TIPS DEBATE ATHEISM OR TRY TO COME UP WITH ALL THE LINES OF I'M FOREVER BLOWING BUBBLES THE MARRIAGE BETWEEN SENIORS AND COMPUTERS IS IN FACT PERFECTLY NATURAL THEY GREW UP WRITING WEEKLY LETTERS AND KEEPING JOURNALS AND DIARIES A COMPUTER IS AN EASIER ERASERLESS WAY TO DO THE SAME AND MORE WITHOUT EVER LEAVING OHIO THEY CAN CARRY ON ONE CONVERSATION WITH SOMEONE IN MAINE AND NEW ZEALAND AND LATER MEET THE PROFESSED COUSIN OF HARRY TRUMAN AND A MAN WHO SAYS HE ONCE KISSED ELIZABETH TAYLOR SOME LIKE MR SOLEN LOG ON AT 6 PM TO SENIORNET'S WEDNESDAY NIGHT COCKTAIL PARTY AND STAY UNTIL MIDNIGHT SENIORNET WHICH COSTS MEMBERS 995 A MONTH HAS 6000 MEMBERS AND 46 LEARNING CENTERS ACROSS THE COUNTRY MARY FURLONG FOUNDER OF THE SEVENYEAROLD NETWORK SAYS IT IS A PAINLESS WAY TO SOCIALIZE ESPECIALLY FOR THOSE RECENTLY WIDOWED AND RELUCTANT TO GO OUT ALONE AND FOR THE DISABLED EVER SINCE A 1982 AUTO ACCIDENT THEODORA GROOTHOF OF COLORADO SPRINGS HAS BEEN CONFINED TO A WHEELCHAIR SHE DOESN'T GET OUT MUCH TO MEET PEOPLE BUT STRUCK UP A FRIENDSHIP OVER THE COMPUTER WITH EDWARD JUNKIN A RETIRED DOCTOR FROM CALGARY HE HAS SPENT THE LAST THREE CHRISTMASES AT HER HOUSE WITH NO RISK OF CENSURE OR REJECTION GRANDPARENTS CAN LET THEIR HAIR DOWN CHURCHGOING BAPTISTS CONFESS THEY ARE REALLY AGNOSTICS ONCE STRAITLACED THEY ARE FLIRTING SHAMELESSLY WITH SOMEONE 500 MILES AWAY NAMED TEXAS TOM IF THEY DON'T LIKE THE COMPANY OR THE DISCUSSION THEY DON'T HAVE TO BE POLITE JUST HIT THE CONTROL BUTTON AND YOU'RE GONE SAYS JOANN OAKES WOMEN FIND COMPUTERS ESPECIALLY LIBERATING JESSIE ASKEW A 55YEAROLD ACTIVE VOLUNTEER RELIED ON HER HUSBAND TO KEEP ALL OF HER VOLUNTEER GROUPS' RECORDS ON COMPUTER WHEN HE DIED IN 1985 SHE BOUGHT HER OWN I HAD TO TEACH MYSELF HOW TO USE IT BUT IT MADE ME SO CONFIDENT SHE SAYS ON THE FIRST NEW YEAR'S EVE AFTER HER HUSBAND'S DEATH SHE DECIDED TO GO ONLINE AND FOUND HERSELF IN HER LYNCHBURG VA HOME PLAYING BATTLESHIP WITH A 14YEAROLD FROM BATON ROUGE LA I THOUGHT THIS IS SO NEAT HERE I AM PLAYING GAMES WITH A KID HALFWAY ACROSS THE COUNTRY SHE SAYS IT CAUGHT MY IMAGINATION HAVING MOVED IN WITH HER PARENTS IN TEXAS TO CARE FOR HER AILING MOTHER MRS ASKEW BECAME A COMPUTER GROUPIE AND JOINED SEVERAL NETWORKS DURING A WEDNESDAY NIGHT COCKTAIL PARTY LAST YEAR SHE NOTICED A NEWCOMER CHUCK RAMSEY SHE CALLED UP HIS BIOGRAPHY WHICH ALONG WITH HOBBIES DESCRIBED HIS COMPUTER CHUCK SHE TYPED I JUST READ YOUR BIO AND I THINK I'M IN LOVE WITH YOUR COMPUTER A FEW SECONDS LATER MR RAMSEY WROTE WELL I JUST READ YOUR BIO AND I THINK I'M IN LOVE WITH YOU WILL YOU MARRY ME JESSIE TURNED TO HER 74YEAROLD FATHER AND ASKED WHAT SHOULD I SAY TELL HIM YES' SHE SAYS HER FATHER ORDERED SHE DID AND THE PARTY BROKE INTO PEALS OF HAH HAH OVER WHAT SEEMED TO BE A JOKE A FEW NIGHTS LATER MR RAMSEY ASKED HER TO CALL HIM ON AN 800 NUMBER SO HE COULD HEAR HER VOICE SHE DISCOVERED THAT HER NEW INTEREST WHO WAS CURT ON THE COMPUTER COULD ONLY TYPE WITH TWO FINGERS AND WAS MUCH MORE EXPANSIVE ON THE PHONE WITHIN A FEW MONTHS MR RAMSEY WAS WAITING FOR HER ON HER FATHER'S FRONT PORCH BY THE TIME WE GOT TO THE HOUSE IT WAS ARM IN ARM SAYS 68YEAROLD MR RAMSEY WHO LIVES IN WOODLAND HILLS CALIF HE HAS MADE FIVE TRIPS SINCE AND THEY ARE TALKING ABOUT TAKING A TRIP TO DENMARK IN THE SPRING THIS IS KIND OF A WILD ADVENTURE FOR ME MRS ASKEW SAYS EARLIER WHEN AN INFATUATION WITH A COMPUTER ACQUAINTANCE IN NORTH DAKOTA TURNED OUT TO BE ONLY THAT SHE INTRODUCED HIM TO ONE OF HER FRIENDS IN FLORIDA THEY CORRESPONDED BY COMPUTER FOR MONTHS AND FINALLY MET THREE DAYS LATER THEY MARRIED COMPUTERS IT TURNS OUT ARE MUCH MORE REVEALING THAN THEY MIGHT SEEM JOANN OAKES SAYS IF YOU TALK TO SOMEONE LONG ENOUGH YOU FIND OUT HOW DEEP THEY ARE OR WHETHER THEY'RE SELFCENTERED WHEN SHE FIRST ENCOUNTERED MR SOLEN SHE THOUGHT HE WAS A LOTHARIO WITH ALL HIS FLIRTING BUT THEN SHE SAW HIS RESPONSE TO A RETICENT NEWCOMER WHO AFTER MINUTES OF SILENCE TYPED I JUST LOST MY WIFE OF 40 YEARS THE SCREENS WENT SILENT UNTIL MR SOLEN LOGGED ON TALKING ABOUT HIS OWN GRIEF AFTER HIS WIFE DIED THAT IMPRESSED HER STILL SHE HAD SOME RESERVATIONS WHAT IF HE WAS SLOPPY OR UNSHAVEN SHE KNEW ONLY FROM HIS DESCRIPTION THAT HE WAS FIT USED TO BE 5FEET11 BUT WAS NOW 5FEET8 1/2 AND HAD SILVER HAIR I DIDN'T FALL IN LOVE UNTIL AFTER I SAW HIM SHE SAYS THAT CONVINCED HER BUT CONVINCING HER CHILDREN THAT SHE WAS GOING TO NEVADA TO STAY WITH A MAN SHE MET OVER A COMPUTER WAS ANOTHER THING YET SHE ADMIRES HER MOTHER'S COURAGE AND IS HAPPY FOR HER SHE WAS LAUGHING AGAIN SHE SAYS ADDING THAT HER MOTHER CALLS MR SOLEN HER SOUL MATE HE IN TURN CALLS MRS OAKES HIS DREAM AND COMPOSED A POEM FOR HER ON HIS COMPUTER A DREAM THAT ONLY YOU ENHANCE MY DREAM OF LOVING YOU 9302120065 930212 JUDGE SETS JUNE 1 DATE FOR CLARK CLIFFORD'S TRIAL WASHINGTON AP A JUDGE SCHEDULED A JUNE 1 TRIAL FOR FORMER DEFENSE SECRETARY CLARK M CLIFFORD AND HIS LAW PARTNER ON FEDERAL CHARGES IN THE BCCI HOLDINGS LUXEMBOURG SA BANKING SCANDAL ATTORNEYS FOR THE AILING 86YEAROLD FORMER PRESIDENTIAL ADVISER AND HIS COLLEAGUE ROBERT ALTMAN HAD ASKED THAT THE TRIAL IN US DISTRICT COURT BE POSTPONED UNTIL NEXT YEAR BECAUSE OF MR CLIFFORD'S PLAN TO UNDERGO HEART BYPASS SURGERY NEXT MONTH THE TWO MEN ALSO ARE NOW SCHEDULED TO GO ON TRIAL MARCH 15 IN NEW YORK ON STATE BANK FRAUD AND BRIBERY CHARGES AND THAT TRIAL IS EXPECTED TO TAKE UP TO SIX MONTHS THEIR ATTORNEYS HOWEVER INDICATED THEY WILL SEEK TO HAVE IT TOO DELAYED BECAUSE OF SOME 500000 NEW INTERNAL BCCI DOCUMENTS TURNED OVER TO THEM RECENTLY FEDERAL JUDGE JOYCE HENS GREENE EXPRESSING EXASPERATION COMPLAINED ABOUT THE JUDICIAL PING PONG TAKING PLACE IN CANDOR IT'S DIFFICULT FOR ME TO KNOW WHAT IS THE TRIAL DATE IN NEW YORK SHE SAID A DEFINITE TRIAL DATE NEEDS TO BE SCHEDULED AT THIS TIME IN THIS FORUM WE'LL DEAL WITH MR CLIFFORD'S HEALTH AS IT DEVELOPS 9302120064 930212 ECONOMY US EC AGREE TO PRESS JAPAN ON TRADE ISSUES TOKYO IS PUSHED TO PLAY ROLE IN SETTLING SPATS THAT STALL GATT TALKS BY BOB DAVIS AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US AND EUROPE AGREED TO LEAN ON JAPAN TO GET WORLD TRADE TALKS MOVING AGAIN THE TWO TOP TRADE NEGOTIATORS FOR THE US AND THE EUROPEAN COMMUNITY MEETING FOR THE FIRST TIME URGED JAPAN TO TAKE MORE RESPONSIBILITY FOR SETTLING DISPUTES THAT HAVE DEADLOCKED THE TALKS WE BOTH AGREE THE TIME HAS COME FOR JAPAN TO PLAY A MORE ACTIVE ROLE SAID SIR LEON BRITTAN THE EC'S NEW TRADE NEGOTIATOR AFTER MEETING WITH US TRADE REPRESENTATIVE MICKEY KANTOR MR KANTOR SAID HE WOULD PRESS TRADE ISSUES WITH JAPANESE FOREIGN MINISTER MICHIO WATANABE AT A MEETING TODAY THE COMMENTS COULD SIGNIFY A CHANGE IN TACTICS FOR THE WORLD TRADE TALKS WHICH HAVE FOCUSED ON A USEC DISPUTE OVER AGRICULTURAL POLICIES CRITICS HAVE LONG COMPLAINED THAT AGRICULTURE HAS CONSUMED TOO MUCH TIME AND POLITICAL CAPITAL LEAVING MORE IMPORTANT TRADE ISSUES UNTOUCHED AT THE SAME TIME A US TRADE ADVISORY PANEL CONSISTING OF SOME OF THE NATION'S LARGEST EXPORTERS URGED NEGOTIATIONS WITH JAPAN TO RESERVE FOR US COMPANIES A PORTION OF JAPANESE MARKETS FOR HIGHTECHNOLOGY GOODS THE REPORT COMPLAINED OF INVISIBLE BARRIERS IN JAPAN THAT MAKE MARKET ACCESS IMPOSSIBLE TO ACHIEVE USING TRADITIONAL TRADE TOOLS THE PRESIDENTIAL PANEL'S RECOMMENDATIONS ARE LIKELY TO BE INFLUENTIAL AS THE CLINTON ADMINISTRATION CONDUCTS ITS TRADE POLICY REVIEW REFERRING TO THE REPORT A JAPANESE OFFICIAL TRAVELING WITH MR WATANABE SAID WE DON'T WELCOME IT IT SEEMS AS IF THERE ARE MOUNTING PRESSURES FOR PROTECTIONIST MEASURES THE JAPANESE OFFICIAL SAID BUT WE HAVE YET TO HEAR THE ADMINISTRATION'S POLICIES FIRST HAND MR WATANABE MET WITH PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE YESTERDAY TODAY IN ADDITION TO HIS MEETING WITH MR KANTOR HE IS TO MEET WITH SECRETARY OF STATE WARREN CHRISTOPHER MR KANTOR AND SIR LEON DISCUSSED IDEAS TO BREATHE LIFE INTO WORLD TRADE TALKS IN GENEVA UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE TALKS COULD IN EFFECT EXPIRE MARCH 2 THAT'S THE DAY SPECIAL NEGOTIATING AUTHORITY GRANTED BY CONGRESS LAPSES FOR US NEGOTIATORS MR KANTOR SAID THE CLINTON ADMINISTRATION WILL SEEK AN EXTENSION OF THIS SOCALLED FASTTRACK AUTHORITY UNDER WHICH CONGRESS CAN VOTE YES OR NO ON TRADE DEALS BUT NOT TRY TO AMEND THEM HOWEVER HE DIDN'T INDICATE WHEN THE ADMINISTRATION WILL SEEK A RENEWAL OR FOR HOW LONG UNLESS US NEGOTIATORS HAVE FASTTRACK AUTHORITY NEGOTIATORS SAY TRADING PARTNERS WON'T SERIOUSLY NEGOTIATE WITH THE US BECAUSE THEY KNOW CONGRESS COULD ALWAYS REWRITE A TRADE DEAL BUT THE US SEEMS EAGER TO TRY WRINGING CONCESSIONS FROM OTHER GATT COUNTRIES IN EXCHANGE FOR OBTAINING A FASTTRACK EXTENSION A FASTTRACK VOTE EXTENSION WOULD BE FIERCELY OPPOSED BY LABOR AND ENVIRONMENTAL GROUPS AMONG OTHERS US NEGOTIATORS COMPLAIN THAT JAPAN HASN'T OFFERED TO SUBSTANTIALLY OPEN ITS BANKING FOREST PRODUCTS OR AGRICULTURAL SECTORS IT'S OBVIOUS THEY'RE GOING TO HAVE TO BE MUCH MORE FORTHCOMING TO MAKE A TRADE DEAL PALATABLE TO THE U S AND EC SAID A US OFFICIAL THE ADVISORY REPORT SUGGESTED A WAY TO PRY OPEN JAPANESE MARKETS IN ESSENCE THE US WOULD PRESSURE JAPAN TO AGREE TO RESERVE PORTIONS OF CERTAIN HIGHTECHNOLOGY MARKETS FOR IMPORTS AS PART OF A PROGRAM TO DOUBLE THE MARKET SHARE OF IMPORTED MANUFACTURED GOODS THE REPORT DIDN'T NAME WHICH PRODUCTS THE US WOULD PUSH FOR SUCH SETASIDES BUT POSSIBLE CANDIDATES INCLUDE SUPERCOMPUTERS ADVANCED MATERIALS AND AUTOMOBILES YOU SHOULD USE YOUR POLITICAL CAPITAL IN AREAS WHERE THERE ARE THE BIGGEST PAYOFFS SAID TIMOTHY REGAN A CORNING INC VICE PRESIDENT WHO WORKED ON THE REPORT HE SAID THE SETASIDE IDEA HAS A LOT IN COMMON WITH A USJAPAN SEMICONDUCTOR AGREEMENT IN WHICH JAPAN SAID IT WOULD IMPORT 20 OF ITS SEMICONDUCTORS A MARK THE JAPANESE HAVEN'T MET BUT MR REGAN SAID THE REPORT ENVISIONED MORE FORMAL AGREEMENTS THAN THE SEMICONDUCTOR ACCORD WHICH THE JAPANESE HAVE INTERPRETED AS A GOAL NOT A COMMITMENT THE REPORT ALSO URGED THE US TO INCREASE ITS SAVINGS AND INVESTMENT AND LAUNCH A PRESIDENTIALLY LED INITIATIVE TO RESTORE US COMPETITIVENESS BUT PIETRO NIVOLA A TRADE EXPERT AT THE BROOKINGS INSTITUTION WARNED THAT A SETASIDE PROGRAM COULD BE SELFDEFEATING BECAUSE IT COULD REQUIRE HEAVY JAPANESE GOVERNMENT ACTION TO MEET IMPORT GOALS PEOPLE ARE ALREADY WORRIED ABOUT COLLUSION BETWEEN GOVERNMENT AND INDUSTRY IN JAPAN HE SAID YOU DON'T WANT TO ENHANCE GOVERNMENT'S INFLUENCE YOU WANT TO REDUCE IT 9302120063 930212 OTC FOCUS INDEX INCHES UP BUT PROFITTAKING IN TECHNOLOGY SHARES SLOWS ADVANCE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS EDGED HIGHER BUT THE ENTHUSIASM WAS DAMPED BY MORE PROFITTAKING IN PROMINENT TECHNOLOGY ISSUES THE NASDAQ COMPOSITE INDEX FINISHED WITH A GAIN OF 086 OR 012 TO 69588 BUT THAT WAS WELL BELOW ITS BEST LEVELS OF THE MORNING ON WEDNESDAY THE INDEX ROSE 281 TO END A THREESESSION LOSING STREAK TRADERS SAID INVESTORS CONTINUE TO DIVERT MONEY OUT OF THE NASDAQ MARKET'S RECENT WINNERS AND INTO THE SHARES OF LARGER COMPANIES ON THE NEW YORK STOCK EXCHANGE MANY OTC STOCKS HAVE SOARED AS THE MARKET ROCKETED ALMOST UNINTERRUPTED FOR FOUR MONTHS THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 079 OR 032 TO 24672 THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1027 OR 030 TO 342269 LARGE STOCKS HOWEVER ALSO CLOSED WELL OFF THEIR BEST LEVELS OF THE DAY ADVANCING NASDAQ ISSUES OUTNUMBERED DECLINERS 1504 TO 1183 NATIONAL MARKET SYSTEM VOLUME EASED TO 197320000 SHARES FROM 222900000 WEDNESDAY AMONG PROMINENT STOCKS THAT LOST GROUND WERE SEMICONDUCTOR MAKER INTEL WHICH FELL 2 1/8 TO 112 3/8 PERSONAL COMPUTER MAKER APPLE COMPUTER WHICH SLIPPED 5/8 TO 55 1/8 AND SOFTWARE DEVELOPER MICROSOFT WHICH EASED 1/4 TO 85 1/4 ALTHOUGH THEIR LOSSES WEREN'T SHARP LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO SAID THE SLUGGISH PERFORMANCE OF THE MARKET'S MOST PROMINENT STOCKS CASTS A SHADOW OVER THE MARKET AS A WHOLE PEOPLE LOOK TO THEM FOR DIRECTION WHEN THE BIG NAMES BEGIN TO FALTER THEY GO OUT AND SELL THE SECONDTIER STOCKS ALSO MR SEFF SAID SOME MONEY IS BEING MOVED FROM NASDAQ TO THE BIG BOARD SIMPLY ON EXPECTATIONS THAT SMALL STOCKS WILL NO LONGER BE ABLE TO SUSTAIN THEIR RELATIVE OUTPERFORMANCE BUT MARY FARRELL MARKET STRATEGIST AT PAINEWEBBER SAID CHANGES IN THE INTERNATIONAL ECONOMIC OUTLOOK ARE ALSO PLAYING A ROLE SMALL COMPANIES HAVE BEEN FAVORED PARTLY BECAUSE THEY DON'T DERIVE AS MUCH OF THEIR EARNINGS AS DO LARGE CORPORATIONS FROM SLUMPING FOREIGN ECONOMIES MS FARRELL SAID BUT RECENT INTEREST RATE CUTS OVERSEAS MAY REINVIGORATE FOREIGN ECONOMIES AS INVESTORS LOOK AHEAD TO 1994 EARNINGS THE DOMESTIC ADVANTAGE THAT SMALL CAMPANIES HAVE HAD DOESN'T SEEM SO FAVORABLE SHE ADDED PROTEON LOST 7/8 TO 8 THE WESTBOROUGH MASS COMPUTER NETWORKING PRODUCTS COMPANY SAID ITS FOURTHQUARTER EARNINGS FELL TO TWO CENTS A SHARE FROM 14 CENTS A SHARE A YEAR AGO ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD PREDICTED A PROFIT OF FIVE CENTS FOR THE LATEST QUARTER SELLING HOWEVER DIDN'T HIT ALL TECHNOLOGY ISSUES BORLAND INTERNATIONAL ADDED 3/4 TO 18 3/4 AND LOTUS DEVELOPMENT ADVANCED 1 1/4 TO 23 3/4 BOTH STOCKS WERE UPGRADED BY DEAN WITTER REYNOLDS ANALYST TIMOTHY MCCOLLUM SCOTTS VALLEY CALIFBASED BORLAND TO NEUTRAL FROM SWAP AND CAMBRIDGE MASSBASED LOTUS TO BUY FROM NEUTRAL MOLTEN METAL TECHNOLOGY CLIMBED TO 15 FROM AN OFFERING PRICE OF 14 ON ITS FIRST DAY OF TRADING THE WALTHAM MASS COMPANY WHICH IS DEVELOPING A SYSTEM TO TREAT AND RECYCLE WASTES AND INDUSTRIAL BYPRODUCTS HAD AN INITIAL OFFERING OF THREE MILLION SHARES THE ISSUE WAS INCREASED FROM AN ORIGINALLY PLANNED 25 MILLION WILT CHAMBERLAIN'S RESTAURANTS AN OTHER NEW ISSUE SLIPPED TO 6 FROM ITS OFFERING PRICE OF 7 THE COMPANY HEADED BY THE RETIRED BASKETBALL STAR HAD AN OFFERING OF 14 MILLION SHARES THOUGH IT HAS ONLY ONE STORE A FRANCHISED UNIT IN BOCA RATON FLA THE COMPANY SAID IT PLANS TO USE PROCEEDS FROM THE OFFERING TO OPEN UNITS AT ADDITIONAL SITES DEP CORP'S CLASS B SHARES TUMBLED 3 1/8 TO 10 5/8 AFTER THE RANCHO DOMINGUEZ CALIF MAKER OF HAIR AND SKINCARE PRODUCTS SAID ITS FISCAL 1993 EARNINGS PROBABLY WILL BE BELOW THE 98 CENTS A SHARE IT POSTED A YEAR AGO IT SAID DISAPPOINTING SALES DEPRESSED ITS EARNINGS FOR THE SECOND QUARTER ENDED LAST MONTH TO ABOUT ONETHIRD THE LEVEL OF THE YEAREARLIER PERIOD US HEALTHCARE BLUE BELL PA LOST 2 1/4 TO 52 1/2 AND FHP INTERNATIONAL OF FOUNTAIN VALLEY CALIF DROPPED 1 7/8 TO 25 3/8 AMID A GENERAL SLIDE IN THE SHARES OF HEALTH MAINTENANCE ORGANIZATION OPERATORS ANALYSTS CITED CONCERN THAT CLINTON ADMINISTRATION HEALTH CARE PROPOSALS MIGHT CREATE PRICE PRESSURES IN THE INDUSTRY HYCOR BIOMEDICAL GAINED 3/8 TO 6 3/8 THE GARDEN GROVE CALIF CORPORATION WON FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET A NEW LINE OF ALLERGY TESTS RED EAGLE RESOURCES SLUMPED 1 3/8 TO 4 3/8 THE OKLAHOMA CITY OIL AND GAS CONCERN SAID A PRODUCTIONSHARING AGREEMENT IT HAS WITH THE REPUBLIC OF YEMEN WAS CANCELED IT BLAMED THE TERMINATION ON CHANGES IN THE YEMENI GOVERNMENT AND SAID IT WILL SEEK TO REINSTATE THE PACT AFTER ELECTIONS ARE HELD THERE LATER THIS YEAR STEEL OF WEST VIRGINIA ROSE 1 TO 14 1/4 IT REPORTED FOURTHQUARTER EARNINGS OF 25 CENTS A SHARE COMPARED WITH EIGHT CENTS A SHARE A YEAR AGO THE HUNTINGTON WVA COMPANY'S LATEST QUARTER'S FIGURES INCLUDED A NONRECURRING CHARGE OF FOUR CENTS A SHARE 9302120062 930212 PROBE ORDERED ON LAUNCH OF ROCKET OVER ATLANTIC WASHINGTON THE TRANSPORTATION DEPARTMENT IS INVESTIGATING WHY AN ORBITAL SCIENCES CORP ROCKET CARRYING A BRAZILIAN COMMUNICATIONS SATELLITE WAS LAUNCHED OVER THE ATLANTIC OCEAN DESPITE AT LEAST ONE ORDER TO ABORT THE MISSION THE SAFETY INVESTIGATION ORDERED YESTERDAY BY TRANSPORTATION SECRETARY FEDERICO PENA IS THE FIRST EVER UNDERTAKEN BY THE OFFICE OF COMMERCIAL SPACE TRANSPORTATION WHICH WAS CREATED IN 1984 TO REGULATE COMMERCIAL SPACE SHOTS THE INVESTIGATORS ARE LOOKING INTO WHETHER MISSIONSAFETY PROCEDURES WERE BREACHED TUESDAY WHEN THE PEGASUS ROCKET WAS LAUNCHED FROM UNDER THE WING OF A NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AIRCRAFT NASA OFFICIALS AT THE AGENCY'S WALLOPS ISLAND VA FLIGHT FACILITY GAVE AT LEAST ONE ABORT ORDER AFTER DETECTING A LOSS OF RADIO CONTACT WITH ONE OF THE PEGASUS' TWO RADIO RECEIVERS THAT ARE DESIGNED TO RECEIVE SELFDESTRUCT COMMANDS IN AN EMERGENCY ACCORDING TO TRANSPORTATION DEPARTMENT OFFICIAL CHARLES KLINE A FEW SECONDS LATER WHEN RADIO CONTACT WAS RESTORED THE ABORT ORDER WAS COUNTERMANDED BY A NASA OFFICIAL HE SAID AMONG THE QUESTIONS ARE WHICH OFFICIALS ISSUED THE ORDERS AND WHETHER THEY WERE WARRANTED THE ROCKET WAS SUCCESSFULLY LAUNCHED SAID BRUCE FERGUSON CHIEF OPERATING OFFICER FOR THE FAIRFAX VA COMPANY ORBITAL HAS ESTABLISHED A TEAM TO CLARIFY THE EVENTS THAT TOOK PLACE TO DETERMINE WHAT IMPROVEMENTS IN LAUNCH PROCEDURES SHOULD BE IMPLEMENTED 9302120061 930212 BUSINESS BRIEF ELJER INDUSTRIES INC FIRM SUES FORMER PARENT CLAIMS BREACH OF CONTRACT ELJER INDUSTRIES INC SAID IT SUED ITS FORMER PARENT HOUSEHOLD INTERNATIONAL INC IN TEXAS STATE COURT CLAIMING BREACH OF CONTRACT IN ITS 1989 SPINOFF HOUSEHOLD A PROSPECT HEIGHTS ILL FINANCIAL SERVICES CONCERN EARLIER THIS MONTH HAD SUED ELJER IN A DELAWARE CHANCERY COURT HOUSEHOLD IS SEEKING A DECLARATORY JUDGMENT THAT IT ISN'T LIABLE FOR DAMAGES ARISING FROM ENVIRONMENTAL AND LEGAL DISPUTES THAT ORIGINATED BEFORE THE SPINOFF AFTER THE SPLIT ELJER IN DALLAS WAS LEFT WITH 136 MILLION IN DEBT THAT IT WAS FORCED TO RESTRUCTURE AFTER A DEFAULT THE PLUMBING PRODUCTS MAKER ALSO PAID NEARLY 15 MILLION FOR ENVIRONMENTAL CLEANUPS AT PLANTS AND INCURRED SUBSTANTIAL LEGAL EXPENSES FOR A DEFECTIVE PLUMBING DEVICE 9302120060 930212 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WHICH AIDS EASTERN ECONOMIES NO LONGER SUPPORTS A SINGLE CURRENCY FOR THE FORMER SOVIET REPUBLICS JACQUES ATTALI THE LONDON BANK'S PRESIDENT SAID THE SOCALLED RUBLE ZONE ISN'T WORKING AND IS ONLY LEADING TO HYPERINFLATION THE REPUBLICS WITH THEIR WILDLY VARYING ECONOMIC POLICIES HAVE LIBERALLY EXTENDED CREDITS TO STATE ENTERPRISES CREATING THE SAME INFLATIONARY EFFECT AS PRINTING MORE MONEY AND BECAUSE OF ITS PLUNGE IN VALUE THE RUBLE HAS BECOME AN OUTCAST IN TRADE SEVERELY DISRUPTING COMMERCE DEPARTING FROM THE RUBLE ZONE COULD LEAD TO IMPROVED MONETARY POLICIES MR ATTALI SAID AND SEPARATE NATIONAL CURRENCIES COULD BRIGHTEN PROSPECTS FOR PRODUCTION AND LIBERALIZED TRADE THE BALTIC STATES AND UKRAINE HAVE CREATED THEIR OWN CURRENCIES AND OTHERS HAVE ISSUED COUPONS TO BE USED IN CASH TRANSACTIONS OR TO SUPPLEMENT RUBLES EVEN RUSSIA HASN'T RULED OUT A NEW CURRENCY EAGER TO RETAIN THE EUROPEAN COMMUNITY'S EXCHANGE RATE MECHANISM EC COMMISSION PRESIDENT JACQUES DELORS FAULTED MEMBERS THAT REMOVED THEIR CURRENCIES FROM THE TOTTERING SYSTEM AND PREDICTED DIRE RESULTS FOR DEFECTORS HE URGED ADJUSTMENTS WITHIN THE ERM SAYING FREEFLOATING CURRENCIES THREATEN THE HEALTH OF THE SYSTEM AND EC ECONOMIES HIS CRITICISM SEEMED AIMED AT BRITAIN WHICH QUIT THE ERM ALONG WITH ITALY LAST SEPTEMBER THE POUND HAS SINCE BEEN DEVALUED 20 AGAINST MAJOR EC CURRENCIES AND BRITAIN HAS SLASHED INTEREST RATES IN A QUEST FOR ECONOMIC GROWTH TO HEAD OFF TRADE FRICTION WITH THE US SOUTH KOREA MAY SLASH TO ABOUT 4 FROM 9 ITS TARIFFS ON IMPORTED SEMICONDUCTORS THE PROPOSAL AND A VOW TO REVISE PRICING ARE AIMED AT PERSUADING THE US TO SUSPEND A DUMPING INVESTIGATION OF KOREAN SEMICONDUCTOR EXPORTS TO THE US DUMPING OCCURS WHEN PRODUCTS ARE SOLD ABROAD AT UNFAIRLY LOW PRICES TO WIN MARKET SHARE LAST YEAR SOUTH KOREA EXPORTED 1 BILLION OF MEMORY CHIPS TO THE US AND OF ITS 55 BILLION TOTAL OF WORLDWIDE CHIP IMPORTS 30 CAME FROM THE US MALAYSIA AVERTED A CONSTITUTIONAL CRISIS AS THE GOVERNMENT AND THE ROYAL SULTANS COMPROMISED ON CONSTITUTIONAL AMENDMENTS TO CURB THE MONARCHY'S PRIVILEGES AND STATUS THE SULTANS APPROVED MODIFIED AMENDMENTS WHICH PARLIAMENT IS EXPECTED TO RATIFY DETAILS WEREN'T SPECIFIED THE DEAL DEFUSED ANTAGONISM BETWEEN MONARCHISTS AND THE GOVERNMENT THAT THREATENED TO SAP THE RULING PARTY DISCOURAGE FOREIGN INVESTMENT AND ERODE CONFIDENCE IN THE ECONOMY CHINA IS SLOWING THE CREATION OF SPECIAL ZONES DESIGNED TO ATTRACT FOREIGN INVESTMENT AND NEW INDUSTRY BECAUSE TOO MUCH FARMLAND IS BEING TAKEN OUT OF PRODUCTION THE XINHUA NEWS AGENCY'S REPORT WAS THE LATEST SIGN THAT CHINA IS TRYING TO PREVENT ECONOMIC OVERHEATING AND RISING INFLATION SINCE FREEMARKET REFORM PROJECTS REACHED FEVER PITCH A YEAR AGO LOCAL GOVERNMENTS HAVE SET UP ABOUT 2000 ZONES OFFERING INCENTIVES SUCH AS TAX BREAKS TO BOOST OUTPUT AND ATTRACT FOREIGN MONEY AND HIGHTECHNOLOGY INDUSTRIES KUWAIT RECORDED ITS FIRST TRADE SURPLUS SINCE ITS LIBERATION FROM IRAQ IN EARLY 1991 THE 1992 THIRDQUARTER SURPLUS WAS 1124 MILLION DINARS 3636 MILLION A TURNAROUND ATTRIBUTED TO REINSTATEMENT OF DUTIES ON MERCHANDISE IMPORTS LAST JULY AND TO HIGHER VALUES FOR KUWAITI OIL EXPORTS EXPORTS GREW 31 TO 567 MILLION DINARS FROM THE SECOND QUARTER WHILE IMPORTS FELL 19 TO 454 MILLION DINARS THE EUROPEAN COMMUNITY COMMISSION STARTED LEGAL ACTIONS AGAINST GERMANY BRITAIN AND THE NETHERLANDS IN A DISPUTE ABOUT IMPORTS FROM STATERUN ECONOMIES THE COMMISSION ACCUSED THE THREE EC MEMBERS OF ILLEGALLY ALLOWING IMPORTS FROM COUNTRIES WITH COMMAND ECONOMIES BEFORE ECWIDE QUOTAS ON SUCH GOODS HAVE BEEN SET REPLACING NATIONAL QUOTAS BRITAIN GERMANY AND THE NETHERLANDS CONTEST THE EC'S LEGAL ANALYSIS OF THEIR IMPORTS OF GOODS RANGING FROM SHOES TO TOYS FROM COUNTRIES SUCH AS CHINA MONGOLIA ALBANIA VIETNAM AND REPUBLICS OF THE COMMONWEALTH OF INDEPENDENT STATES FRANCE AND ITALY HAD COMPLAINED THAT THEIR INDUSTRIES WERE HURT BY THE INEXPENSIVE GOODS BROUGHT INTO THE TRADE BLOC THROUGH THE THREE ACCUSED COUNTRIES THE THREE NATIONS HAVE TWO WEEKS TO JUSTIFY THEIR ACTIONS IF THE COMMISSION ISN'T SATISFIED IT CAN TAKE THE CASE TO THE EUROPEAN COURT OF JUSTICE IN A BID TO ATTRACT FOREIGN INVESTMENT CASHSTARVED NORTH KOREA WILL ALLOW FOREIGN VESSELS AT THE PORTS OF RAJIN AND SUNBONG ON THE SEA OF JAPAN AND WAIVE VISAS FOR VISITS TO THE COUNTRY'S FIRST SPECIAL ECONOMIC ZONE IN THE TUMAN RIVER AREA BORDERING CHINA AND RUSSIA ST PETERSBURG RUSSIA AUTHORIZED SHANGHAI INVESTORS TO BUILD A CHINATOWN AREA 9302120059 930212 BUSINESS BRIEF CANADIAN PACIFIC FOREST PRODUCTS MILL'S OUTPUT OF MARKET PULP TO BE HALTED INDEFINITELY CANADIAN PACIFIC FOREST PRODUCTS LTD SAID IT WILL HALT INDEFINITELY THE PRODUCTION OF MARKET PULP AT ITS MILL IN LA TUQUE QUEBEC BECAUSE OF A GLOBAL SUPPLY GLUT THAT HAS CAUSED PRICES TO PLUNGE SINCE LATE LAST YEAR THE MILL THE COMPANY'S OLDEST HAS ANNUAL MARKETPULP CAPACITY OF 156000 METRIC TONS ROUGHLY 14 OF CP FOREST'S TOTAL CAPACITY FOR THE PRODUCT ABOUT 200 EMPLOYEES WILL BE AFFECTED BY THE PRODUCTION HALT WHICH TAKES EFFECT FEB 28 PRODUCTION OF PAPERBOARD PRODUCTS AT THE LA TUQUE MILL WON'T BE AFFECTED THE MONTREALBASED FOREST PRODUCTS COMPANY SAID MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET A METRIC TON IS 22046 POUNDS 9302120058 930212 REVIEW & OUTLOOK EDITORIAL ASIDES A FERNANDEZ FOOTNOTE WHEN THE NEW YORK CITY BOARD OF EDUCATION VOTED WEDNESDAY TO FORCE THE DEPARTURE OF ITS CHANCELLOR JOSEPH FERNANDEZ ONE OF THE CHANCELLOR'S BOARD SUPPORTERS SADLY WISHED HIM LUCK AND MURMURED MAYBE WE DIDN'T DESERVE YOU WE CAN'T HELP AGREEING WITH THE SUPPORTER NEW YORK CITY DIDN'T DESERVE A CHANCELLOR WHOSE NOTION OF EDUCATION WAS CONDOM DISTRIBUTION AND INDOCTRINATING SCHOOLCHILDREN IN ALTERNATIVE LIFESTYLES AND ALMOST PUERILE NOTIONS OF MULTICULTURAL DIVERSITY THE BOROUGHS OF NEW YORK ARE HEAVILY POPULATED WITH NEW IMMIGRANTS WHO WANTED LIKE GENERATIONS OF NEWCOMERS BEFORE THEM PUBLIC SCHOOLS THAT WOULD TEACH THEIR CHILDREN READING AND WRITING AND MATHEMATICS IN SHORT SKILLS NEEDED TO MAKE THEM SUCCESSFUL AND FUNCTIONING CITIZENS INSTEAD OF A SYSTEM OVERWHELMINGLY COMMITTED TO THESE GOALS THEY GOT A CHANCELLOR PREOCCUPIED WITH SOCIAL ENGINEERING EFFORTS WITH IMPOSING PROGRESSIVE VALUES ON THE SCHOOLS EVER SINCE THE BOARD VOTED TO OUST THE CHANCELLOR HIS SUPPORTERS HAVE WARNED THAT NEW YORK WILL NOW BE UNABLE TO ATTRACT ANY WELLQUALIFIED EDUCATOR TO BE HIS SUCCESSOR WE DOUBT THIS WILL BE A PROBLEM IF NEW YORK CAN CONVINCE ITS CANDIDATES THAT THE SYSTEM'S HIGHEST VALUE IS TEACHING ESSENTIALS SUCH AS LITERACY AND COMPUTATION THE LEADERS WILL COME 9302120057 930212 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON STRUGGLES TO REGAIN FOOTING WITH HIS ECONOMIC PLAN NEXT WEEK HE WILL TRY TO REJUVENATE HIS IMAGE BY FOCUSING ALMOST EXCLUSIVELY ON SELLING THE PACKAGE UNDER CONSIDERATION ANOTHER CLINTONGORE BUS TRIP THROUGH THE MIDWEST MOST CABINET MEMBERS ARE ASSIGNED TO VISIT THEIR HOME STATES THURSDAY TO PROMOTE THE PLAN CLINTON AND CABINET OFFICERS WILL EVEN GO ON RADIO TALK SHOWS BUT MANY PROBLEMS REMAIN THE EXPECTED ENHANCEDRESCISSION PROPOSAL TO INCREASE PRESIDENTIAL CONTROL OVER SPENDING WILL IRK SENATE APPROPRIATIONS CHAIRMAN BYRD TO ASSUAGE HIM THE NEW ENERGY PLAN IS BEING DESIGNED NOT TO HIT WEST VIRGINIA COAL TOO HARD THE DEFICITREDUCTION PART OF THE PLAN PROBABLY WON'T BE COMPLETED UNTIL LATE SUMMER SO PASSING THE DEBTCEILING INCREASE BILL NEXT MONTH COULD BE TOUGH CLINTON'S NEXT CRUSADE HEALTHCARE REFORM CELIA FISHER HIS TOP PENNSYLVANIA OPERATIVE LAST YEAR IS ASSIGNED TO LAUNCH A GRASSROOTS CAMPAIGN FROM THE DEMOCRATIC NATIONAL COMMITTEE REPUBLICANS PREPARE A SHARP RESPONSE TO CLINTON'S PACKAGE HOUSE GOPERS MAY OFFER A PLAN THAT USES THE FIRST BUDGET OF CLINTON'S TERM NOT THE LAST AS THE BENCHMARK BY ATTACKING THE EXPECTED 30 BILLION STIMULUS PACKAGE AS UNNECESSARY IN LIGHT OF THE ECONOMIC UPTURN THEY CAN WRITE A PLAN THAT PRODUCES MORE IMMEDIATE DEFICIT REDUCTION WITHOUT RAISING TAXES OR TOUCHING SOCIAL SECURITY YEAR ONE HAS TO BE OUR FOCUS SAYS REP KASICH THE TOP BUDGET COMMITTEE REPUBLICAN THAT APPROACH IGNORES LONGERTERM PROBLEMS THAT CLINTON'S PACKAGE WILL ATTEMPT TO ADDRESS BUT GOP POLLSTER BILL MCINTURFF SAYS OFFERING AN ALTERNATIVE REPUBLICAN HARDCHOICES PLAN IS A LOSER RESPONSE SOME SAY THE GOP LACKING RESPONSIBILITY FOR EITHER CONGRESS OR THE PRESIDENCY SHOULD GO ON THE OFFENSIVE ESPECIALLY ON TAXES AND ENTITLEMENTS BUT CONCERNS THAT THE PARTY SHOULDN'T BE SEEN AS TAKING A SLASHANDBURN APPROACH WERE BEHIND THE CHOICE OF REP MICHEL RATHER THAN SEN DOLE TO DELIVER THE PARTY'S RESPONSE RUBIN'S HAND IS INCREASINGLY EVIDENT IN ECONOMIC POLICY MAKING DESCRIBED BY ALL SIDES AS THE HONEST BROKER AT MARATHON WHITE HOUSE BUDGET SESSIONS THE NATIONAL ECONOMIC COUNCIL CHAIRMAN'S EASYGOING MANNER BELIES HIS CRITICAL ROLE IN STEERING CLINTON'S PLAN TOWARD TOUGH DEFICITREDUCTION MEASURES HIS CLOSE TIES TO TREASURY SECRETARY BENTSEN HE WAS ONCE TRUSTEE OF THE FORMER SENATOR'S BLIND TRUST BOOST HIS INFLUENCE THE TWO HAVE EMERGED AS POTENT DEFICIT HAWKS THOUGH HE HAS BEEN WORKING 85HOUR WEEKS HE SHOWS FEW SIGNS OF STRESS WHILE CLINTON RAGES ABOUT BAD PRESS RUBIN LAUGHS OFF AN OVERBLOWN STORY ABOUT A STAYINTOUCH LETTER HE WROTE TO FORMER CLIENTS THE BIG LOSER IN THE INFLUENCE GAME IS THE CABINET WHICH EXCEPT FOR BENTSEN HAS BEEN ALL BUT SHUT OUT OF THE DECISIONMAKING PROCESS INVITING TARGET HILL REPUBLICANS LIE IN WAIT FOR CLINTON'S EXPECTED REQUEST FOR EXTRA MONEY TO UPGRADE THE WHITE HOUSE PHONE SYSTEM AND OTHER MOVINGIN EXPENSES THEY MAY PAINT THE REQUEST AS A TAXPAYERFUNDED ELECTIONEERING EXPENSE THE US MULLS APRIL 18 AS THE TARGET DATE FOR RESUMING THE STALLED MIDEAST PEACE TALKS CHRISTOPHER WILL TRY TO CONVINCE ARAB PARTICIPANTS TO SIGN ON WHEN HE VISITS THE REGION NEXT WEEK THE BIG QUESTION IS WHETHER THE PALESTINIANS WILL ACCEPT ISRAEL'S PLAN TO RESOLVE THE FATE OF THE DEPORTEES NOW STUCK IN A LEBANESE NO MAN'S LAND CONGRESS'S SCRUTINY OF THE FEDERAL RESERVE BANK PRESIDENTS' ROLE AND LACK OF DIVERSITY COMPLICATES THE FED'S SEARCH FOR A NEW LEADER AT THE KEY NEW YORK BANK CONTENDERS INCLUDE ST LOUIS FED CHIEF THOMAS MELZER AND FED VICE CHAIRMAN DAVID MULLINS BUT ALL 12 CURRENT BANK PRESIDENTS ARE WHITE MEN AND THREE OF THE LAST FOUR PICKS WERE FED INSIDERS ASPIN DELAYS RELEASING THE EXPLOSIVE FINAL REPORT ON THE TAILHOOK SEXUALHARASSMENT EPISODE THE REPORT WHICH GOES INTO GRAPHIC DETAIL WILL END THE CAREERS OF SEVERAL MORE ADMIRALS AND MAY COMPLICATE THE PENTAGON'S HANDLING OF THE GAYS ISSUE THE DEFENSE CHIEF APPARENTLY WANTS TO FOCUS HIS NEW TEAM ON THE BUDGET AND NOT DEAL WITH TAILHOOK RIGHT NOW THE PENTAGON PICKS A NEW FIGHT WITH DEFENSE CONTRACTORS JOINT CHIEFS CHAIRMAN POWELL'S REPORT TODAY ON THE ARMED FORCES' FUTURE IS LIKELY TO BACK AWAY FROM EARLIER SUGGESTIONS TO SHUFFLE RESPONSIBILITY FOR MILITARY TASKS SUCH AS SOME AVIATION FUNCTIONS INSTEAD HE WILL FOCUS ON CONSOLIDATING BIGTICKET SUPPORT SERVICES SUCH AS AIRCRAFT MAINTENANCE AND TRAINING AND BRINGING MORE WORK INHOUSE THAT'S BAD NEWS FOR THE ALREADYBATTERED DEFENSE CONTRACTORS WHICH CURRENTLY PROVIDE MANY OF THOSE SERVICES THE AEROSPACE INDUSTRIES ASSOCIATION COMPLAINS ABOUT NATIONALIZATION OF ITS MEMBERS' BUSINESS PENTAGON BRASS ARE LARGELY PLEASED BY POWELL'S PLAN BUT BRACE FOR A NEW ROUND OF BASE CLOSINGS THE NAVY WHICH LARGELY ESCAPED THE AX LAST TIME IS EXPECTED TO BE HARD HIT BY THE NEW ROUND MINOR MEMOS DOLE SAYS CLINTON'S LAWYERLADEN CABINET DOESN'T LOOK LIKE THE FACE OF AMERICA LOOKS MORE LIKE A BOARD MEETING OF THE AMERICAN BAR ASSOCIATION HE SAYS A GORE FRIEND TOLD HIM TO URGE CLINTON TO PICK SIGOURNEY WEAVER FOR ATTORNEY GENERAL SHE KNOWS HOW TO HANDLE ALIENS 9302120056 930212 ABREAST OF THE MARKET INDUSTRIALS FINISH UP 1027 POINTS SLIDING FROM AFTERNOON HIGHS BY CRAIG SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED HIGHER BUT THE DAY'S GAINS WERE STEADILY ERODING BY THE TIME THE CLOSING BELL RANG THE DOW JONES INDUSTRIAL AVERAGE WHICH PEAKED ABOVE 3440 IN THE EARLY AFTERNOON CLOSED AT 342269 A 1027POINT ADVANCE THE AFTERNOON SLIDE FROM SESSION HIGHS DESPITE A BIG RALLY IN BONDS STARTED WHISPERS IN SOME CORNERS OF WALL STREET THAT THE RALLY MIGHT BE OVER WE'VE HAD AN AWFUL LOT OF GOOD NEWS WHAT ELSE CAN GO RIGHT ASKED JACK SHAUGHNESSY RESEARCH DIRECTOR AT ADVEST INC A PRUDENT PERSON WOULD PROBABLY TAKE SOME PROFITS HERE HE ADDED INDEED WITH PRESIDENT CLINTON'S ECONOMIC SPEECH LESS THAN A WEEK AWAY THERE'S MORE THAT CAN GO WRONG THAN RIGHT ANALYSTS SAY IF MR CLINTON LEANS TOWARD CREATING JOBS INSTEAD OF CUTTING THE DEFICIT WALL STREET MAY WELL DECIDE INTEREST RATES ARE HEADED HIGHER A VIEW THAT WOULD PROBABLY TOPPLE STOCKS MEANWHILE THE MARKET APPEARS NUMB TO MORE GOOD NEWS YESTERDAY'S ROBUST RESPONSE TO THE TREASURY'S 30YEAR BOND AUCTION SENT BOND PRICES SURGING A MOVE THAT WOULD NORMALLY EMBOLDEN EQUITY BUYERS STOCKS HOWEVER PULLED BACK STANDARD & POOR'S 500STOCK INDEX ENDED WITH A 143POINT GAIN TO 44766 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 079 TO 24672 AND THE DOW JONES EQUITY MARKET INDEX GAINED 116 TO 42449 ADVANCING ISSUES OUTNUMBERED DECLINING ISSUES 1076 TO 774 BIG BOARD VOLUME TOTALED 252670000 SHARES UP SLIGHTLY FROM WEDNESDAY'S 248480000 THE ECONOMIC RECOVERY AT LEAST ISN'T WORRYING WALL STREET FOR NOW STOCKS MOST SENSITIVE TO THE ECONOMY'S UPS AND DOWNS WERE THE FAVORITES AMONG INVESTORS AGAIN YESTERDAY AMONG THE DOW JONES INDUSTRIALS FOR EXAMPLE THE STRONGEST STOCKS WERE ALLIEDSIGNAL GENERAL MOTORS SEARS ROEBUCK AND CATERPILLAR ALUMINUM CO OF AMERICA HOWEVER LOST NEARLY ALL OF ITS GAINS IN THE LAST MINUTES OF TRADING FALLING FROM AROUND 76 TO CLOSE AT 75 1/8 UP 1/8 BUT RALPH BLOCH CHIEF MARKET ANALYST AT RAYMOND JAMES & ASSOCIATES NOTED THAT MANY TECHNOLOGY STOCKS DIDN'T FOLLOW THROUGH ON THE BIG GAINS POSTED WEDNESDAY MOTOROLA FOR EXAMPLE WHICH GAINED 2 1/8 WEDNESDAY ADDED ONLY 1/8 TO 56 YESTERDAY MR BLOCH SAID THAT MANY OF HIS TECHNICAL INDICATORS ARE LOOKING WEAKER AS WELL THE MARKET IS LOSING MOMENTUM HE SAID SEVERAL OF THE CYCLICAL STOCKS THAT HELD THEIR GAINS HAD NEWS TO ACCOUNT FOR THE BUYING ALLIEDSIGNAL WAS UP 2 5/8 TO 66 7/8 AFTER WINNING A 500 MILLION ARMY CONTRACT GM GAINED 1 1/4 TO 40 1/2 AFTER IT REPORTED FOURTHQUARTER RESULTS OPERATING PROFIT OF 2733 MILLION OR 10 CENTS A SHARE ANALYSTS SAID THE SLIM EARNINGS WHICH COMPARED WITH AN OPERATING LOSS OF ABOUT 5198 MILLION OR 109 A SHARE A YEAR EARLIER SHOW GM'S COSTCUTTING AND RESTRUCTURING MEASURES ARE BEGINNING TO PAY OFF SEARS JUMPED 1 1/2 TO 51 1/2 AFTER IT SAID IT PLANS TO COMPLETE THE SPINOFF OF ITS DEAN WITTER AND DISCOVER CARD UNIT BY THE END OF THE MONTH GM MAY HAVE RALLIED BUT THE COMPANY'S CLASS E SHARES REPRESENTING ITS ELECTRONIC DATA SYSTEMS UNIT FELL 2 TO 31 7/8 ON HEAVY VOLUME FURMAN SELZ TOOK THE GM CLASS E STOCK OFF ITS RECOMMENDED LIST CITING EDS'S SLOWING GROWTH INTERNATIONAL BUSINESS MACHINES FELL 1 1/8 TO 51 1/8 AFTER REPORTS THE COMPANY MAY CUT MORE JOBS THAN PREVIOUSLY EXPECTED FROM ITS NORTH AMERICAN SALES FORCE TALK OF ADDED JOB CUTS RAISED RENEWED CONCERN ABOUT IBM'S DIVIDEND WHICH THE COMPANY SLASHED BY MORE THAN HALF IN JANUARY SOME ANALYSTS SAY THE DIVIDEND MAY BE IN JEOPARDY IF IBM TAKES ADDITIONAL CHARGES AGAINST EARNINGS TO COVER MORE SEVERANCE PAYMENTS STUDENT LOAN MARKETING ASSOCIATION LOST 2 3/4 TO 63 1/8 SMITH BARNEY LOWERED ITS INVESTMENT RATING ON THE STOCK TO A SPECULATIVE HOLD FROM A BUY ON CONCERNS THAT THE CLINTON ADMINISTRATION MAY PHASE IN A DIRECT STUDENTLOAN PLAN SCHERINGPLOUGH JUMPED 3 1/8 TO 62 THE COMPANY SAID IT IS CONFIDENT ITS ANTIHISTAMINE CLARITIN WILL BE CLEARED BY THE FOOD AND DRUG ADMINISTRATION FOR MARKETING SOON OTHER DRUG STOCKS GAINED MERCK ROSE 1/2 TO 40 3/4 AMERICAN HOME PRODUCTS ADDED 1 1/4 TO 63 3/4 AND PFIZER GAINED 1 3/4 TO 64 3/8 ROLLINS ENVIRONMENTAL LOST 1 1/8 TO 10 1/4 AFTER KIDDER PEABODY DOWNGRADED THE STOCK TO HOLD FROM BUY OFFICE DEPOT LOST 2 3/4 TO 32 7/8 PRUDENTIAL SECURITIES DOWNGRADED THE STOCK TO SELL FROM HOLD CITING EXPECTED PRICE COMPETITION FROM A KMART UNIT THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX WAS 41705 UP 095 THERE WERE 313 ADVANCERS AND 240 DECLINERS 9302120055 930212 MIAMI PROSECUTOR JANET RENO IS PICKED BY PRESIDENT TO BE ATTORNEY GENERAL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOMINATED MIAMI PROSECUTOR JANET RENO TO BE ATTORNEY GENERAL HOPING TO PUT BEHIND HIM THE TROUBLED ATTEMPTS TO APPOINT A WOMAN TO BE ATTORNEY GENERAL MR CLINTON SAID DURING A ROSE GARDEN CEREMONY THAT THE 54YEAROLD STATE ATTORNEY FROM DADE COUNTY FLA HAS BOTH MANAGEMENT EXPERIENCE AND LEGAL EXPERIENCE AND A KEEN EYE FOR EXCELLENCE MS RENO WHO WAS APPOINTED STATE ATTORNEY IN 1978 AND SUBSEQUENTLY WAS ELECTED TO THE OFFICE FIVE TIMES IS CONSIDERED A TOUGH AND FAIR PROSECUTOR SHE HAS WORKED SUCCESSFULLY WITH FEDERAL AUTHORITIES ON A NUMBER OF CASES INCLUDING PROSECUTION OF CORRUPT MIAMI POLICE SHE ESTABLISHED A SPECIAL PUBLIC CORRUPTION UNIT SHE BRINGS NO POLITICAL AGENDA TO THE JOB NO AMBITION FOR HIGHER OFFICE SAID DICK GREGORIE A FORMER FEDERAL PROSECUTOR IN MIAMI WHO IN 1991 JOINED MS RENO'S STAFF HE SAID HER STRONGEST SUIT HAS BEEN AGGRESSIVE PROSECUTION OF CHILD ABUSE AND OTHER MATTERS RELATING TO JUVENILES STANDING NEXT TO MR CLINTON WHO FAVORS CAPITAL PUNISHMENT MS RENO SAID SHE PERSONALLY OPPOSES THE DEATH PENALTY BUT SHE QUICKLY ADDED WHEN THE EVIDENCE AND THE LAW JUSTIFY THE DEATH PENALTY I WILL ASK FOR IT AS I HAVE CONSISTENTLY AND I WILL ADVOCATE FOR IT AS THE LAW OF THE LAND IN PARTICULAR SITUATIONS HER OFFICE HAS WON 80 DEATH PENALTY CONVICTIONS DURING HER TENURE MR CLINTON HAS BEEN STUNG BY THE FAILURE OF HIS FIRST TWO SELECTIONS CORPORATE ATTORNEY ZOE BAIRD AND FEDERAL JUDGE KIMBA WOOD AMID CONTROVERSIES OVER THEIR EMPLOYMENT OF ILLEGAL ALIENS AS BABY SITTERS HE SOUGHT TO USE THE SPLENDOR OF THE ROSE GARDEN AND HIS WIT TO PLAY DOWN THOSE FAILURES HE DISCLOSED THAT SEVERAL MALE CANDIDATES HAD BEEN DISQUALIFIED BECAUSE OF PROBLEMS SIMILAR TO THOSE OF MS WOOD AND MS BAIRD AND SAYING HE SERIOUSLY CONSIDERED FOUR MEN FOR THE JOB HE INSISTED THAT HE CHOSE MS RENO BECAUSE SHE WAS THE BESTQUALIFIED MS RENO WHO APPEARED STERN THROUGHOUT THE NEWS CONFERENCE SEEMED MORE AT EASE WHEN SHE NOTED THAT HER OWN BACKGROUND HAD BEEN THOROUGHLY REVIEWED I'VE NEVER HIRED AN ILLEGAL ALIEN AND I THINK I'VE PAID ALL MY SOCIAL SECURITY TAXES SHE SAID SMILING SHE THEN TALKED ABOUT THE EXTENSIVE BACKGROUND CHECKS BY MR CLINTON'S AIDES SAYING I THINK WE COVERED EVERYTHING MS RENO SAID SHE WOULD WORK TO BRING INTEGRITY EXCELLENCE AND PROFESSIONALISM TO THE JUSTICE DEPARTMENT WHICH DEMOCRATS HAVE SAID WAS POLITICIZED DURING THE REAGAN AND BUSH PRESIDENCIES CONSERVATIVE LEGAL ANALYST BRUCE FEIN WHO SERVED IN THE REAGAN ADMINISTRATION JUSTICE DEPARTMENT SAID MS RENO IS EXCEPTIONALLY ILLEQUIPPED BECAUSE SHE LACKS EXPERIENCE IN MANY AREAS OF LAW THAT CONCERN THE FEDERAL GOVERNMENT SUCH AS ANTITRUST THE SELECTION OF FEDERAL JUDGES AND EXECUTIVE PRIVILEGE MS RENO HAS BEEN IN THE PROSECUTOR'S OFFICE THE BULK OF HER CAREER BUT SHE ALSO HAS BEEN A PARTNER IN A MIAMI LAW FIRM AND GOT LEGISLATIVE EXPERIENCE AS STAFF DIRECTOR FOR THE JUDICIARY COMMITTEE IN FLORIDA'S HOUSE OF REPRESENTATIVES HER OPPOSITION TO CAPITAL PUNISHMENT IS CERTAIN TO BE A POINT OF DISCUSSION IN HER CONFIRMATION HEARINGS AND IT COULD ARISE AGAIN IF SHE IS CONFIRMED BECAUSE PRESIDENT CLINTON HAS BACKED A CRIME BILL THAT WOULD EXPAND USE OF THE FEDERAL DEATH PENALTY MS RENO'S CAREER DEMONSTRATES HOW A PUBLIC OFFICIAL CAN FALL IN AND OUT OF FAVOR IN 1984 SHE WON ELECTION BUT FAILED TO CARRY BLACK PRECINCTS AFTER HER OFFICE FAILED IN TWO CELEBRATED CASES TO WIN CONVICTIONS OF POLICE OFFICERS ACCUSED OF KILLING BLACK PEOPLE YESTERDAY REP CARRIE MEEK D FLA WHO REPRESENTS MUCH OF MIAMI'S BLACK COMMUNITY PRAISED MS RENO AS A TOUGH PROSECUTOR BUT VERY VERY FAIR IN 1984 THE MIAMI HERALD ENDORSED HER OPPONENT SAYING THE SYMPTOMS OF DISORGANIZATION WERE MYRIAD IN MS RENO'S OFFICE BUT FOUR YEARS LATER THE NEWSPAPER STRONGLY RECOMMENDED HER REELECTION CITING HER PERSONAL HONESTY BY SELECTING MS RENO MR CLINTON MAY BE ABLE TO MEND SOME FENCES WITH WOMEN'S GROUPS UPSET BY THE FAILURE OF HIS EARLIER SELECTIONS PATRICIA IRELAND PRESIDENT OF THE NATIONAL ORGANIZATION FOR WOMEN PRAISED THE NEW NOMINEE SAYING SHE HAS A SOLID RECORD ON ISSUES AFFECTING WOMEN CHILDREN AND HEALTH CARE IN HER 15 YEARS OF GOVERNMENT SERVICE IN DADE COUNTY RENO SET UP SEPARATE UNITS TO DEAL WITH SEXUAL ASSAULT AND CHILD ABUSE CASES AS WELL AS ESTABLISHING PROGRAMS FOR TEENAGE DELINQUENTS MS IRELAND ADDED IF CONFIRMED BY THE SENATE THE NEW ATTORNEY GENERAL WILL FACE A SERIES OF IMMEDIATE CHALLENGES PERHAPS THE MOST VISIBLE ONE INVOLVES HOW TO HANDLE ALLEGATIONS OF ETHICAL VIOLATIONS AGAINST FEDERAL BUREAU OF INVESTIGATION DIRECTOR WILLIAM SESSIONS CLINTON ADMINISTRATION OFFICIALS HAVE INDICATED THAT MR SESSIONS'S FATE WON'T BE DECIDED UNTIL AFTER A NEW ATTORNEY GENERAL TAKES OFFICE THE ADMINISTRATION ALSO MUST DECIDE WHAT POSITION TO TAKE WHEN THE SUPREME COURT HEARS ORAL ARGUMENTS MARCH 2 ON A CASE CHALLENGING THE US POLICY OF TURNING BACK FLEEING HAITIANS WITHOUT ALLOWING THEM TO SEEK REFUGEE STATUS IN THE US MR CLINTON CRITICIZED THE POLICY DURING HIS CAMPAIGN BUT HAS BACKED AWAY FROM THAT STANCE A DEBATE WITHIN THE ADMINISTRATION OVER HOW TO APPROACH THE COURT CASE HAS BEEN SLOWED BY THE FAILURE TO FILL THE ATTORNEY GENERAL JOB MOREOVER THE PRESIDENT STILL HASN'T NAMED A SOLICITOR GENERAL THE OFFICIAL IN CHARGE OF REPRESENTING THE GOVERNMENT BEFORE THE COURT THE NEW ATTORNEY GENERAL ALSO WILL BE EXPECTED TO MOVE QUICKLY TO PROPOSE A CRIME BILL WHICH IN RECENT YEARS CAME TO EXEMPLIFY GRIDLOCK BETWEEN THE DEMOCRATIC CONGRESS AND THE REPUBLICAN BUSH ADMINISTRATION SOME LAWMAKERS HAD EXPECTED THE ADMINISTRATION TO HAVE SUBMITTED ITS BILL BY NOW BUT DIFFICULTIES IN FINDING AN ATTORNEY GENERAL HAVE DELAYED THE PROCESS THE PRESIDENT SUGGESTED THAT OTHER TOP JOBS AT THE JUSTICE DEPARTMENT WILL BE FILLED SOON WE HAVE DONE AN ENORMOUS AMOUNT OF WORK ON TOPFLIGHT CANDIDATES FOR OTHER POSITIONS HE SAID AND I WOULD EXPECT THAT IF THIS NOMINATION GOES AS I EXPECT IT TO WE'LL BE ABLE TO FILL OUT THE JUSTICE DEPARTMENT WITH FIRSTCLASS LAWYERS VERY VERY QUICKLY THE PRESIDENT HAD HIGH PRAISE FOR HIS WIFE'S FORMER LAW PARTNER WEBSTER HUBBELL WHO HAS BEEN STATIONED IN THE JUSTICE DEPARTMENT AS LIAISON WITH THE WHITE HOUSE AND IS EXPECTED TO REMAIN THERE WITH AN INFLUENTIAL JOB SEPARATELY JEFF SHAFER AN ECONOMIST FOR THE ORGANIZATION FOR ECONOMIC COORDINATION AND DEVELOPMENT HAS EMERGED AS A LEADING CANDIDATE TO BE ASSISTANT TREASURY SECRETARY FOR INTERNATIONAL AFFAIRS AND ELLEN SEIDMAN A VICE PRESIDENT OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION IS EXPECTED TO JOIN THE STAFF OF THE WHITE HOUSE NATIONAL ECONOMIC COUNCIL AS A SPECIAL ASSISTANT TO THE PRESIDENT SHE WILL WORK ON ECONOMIC AND REGULATORY ISSUES MICHAEL K FRISBY AND PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9302120054 930212 MARKETING HIGHEND AUDIO ENTICES MUSIC LOVERS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEND AN EAR TO KOICHI MACHIDERA IF YOU CAN HEAR HIM OVER THE SOUND OF LOU REED'S WALK ON THE WILD SIDE BLASTING FROM THE STEREO MR MACHIDERA RAISED IN TOKYO AND A MANHATTAN RESIDENT FOR THE PAST 18 YEARS IS EXPLAINING WHY HE TRADED IN HIS SANSUI STEREO SYSTEM AND SPENT 3500 FOR SEVENFOOT LOUDSPEAKERS AND 6000 FOR A TEMPERAMENTAL AMPLIFIER THAT TAKES 30 MINUTES TO WARM UP BEFORE IT SOUNDS BEST MR MACHIDERA HAS LAUNCHED HIMSELF INTO THE UPPER REACHES OF HIGHEND AUDIO IN HOPES OF LURING FAVORITE MUSICIANS INTO HIS LIVING ROOM THROUGH RECORDINGS HE SAYS THAT LOU REED'S VOICE WOULD SOUND BETTER IF THE COFFEE TABLE WERE MOVED OUT OF THE WAY AND THE SPEAKERS WEREN'T IN FRONT OF THE WINDOWS BUT EVEN NOW HE SAYS VOCALISTS CAN SOUND SO REALISTIC ON HIS STEREO THAT IT'S SPOOKY THE DESIRE TO MAKE RECORDED MUSIC SOUND LIVE IS MOVING GROWING NUMBERS OF PEOPLE TO PAY LARGE SUMS OF MONEY TO TRADE UP TO HIGHEND COMPONENTS THE HIGHEND AUDIO INDUSTRY ANNUALLY SELLS BETWEEN 820 MILLION AND 1 BILLION WORLDWIDE ACCORDING TO THE ACADEMY FOR THE ADVANCEMENT OF HIGH END AUDIO AN INDUSTRY GROUP THAT COMPARES WITH SALES OF 21 BILLION ANNUALLY FOR ALL AUDIO COMPONENTS COMPANIES LIKE KRELL INDUSTRIES INC OF MILFORD CONN MADRIGAL AUDIO LABS OF MIDDLETOWN CONN AND AUDIO RESEARCH OF MINNETONKA MINN ARE GENERALLY CONSIDERED AMERICA'S LEADING MANUFACTURERS AND THUS LEADERS AROUND THE GLOBE BUT THERE ARE SCORES OF OTHER COMPANIES THAT DOT AMERICA AND MAKE THEIR PRESENCE FELT ABROAD LIKE MARTINLOGAN LTD OF LAWRENCE KAN CONRADJOHNSON DESIGN INC OF FAIRFAX VA AND JEFF ROWLAND DESIGN GROUP OF COLORADO SPRINGS TO NAME JUST A FEW SOME COMPANIES EXPORT AS MUCH AS 70 OF THEIR PRODUCTS TO JAPAN HONG KONG TAIWAN SOUTH KOREA AND EUROPE AMONG OTHERS OTHER COUNTRIES ALSO PRODUCE HIGHEND EQUIPMENT MR MACHIDERA HAS PICKED COMPONENTS FROM ENGLAND JAPAN AND FRANCE AS WELL AS THE US FOR HIS CURRENT SYSTEM BUT YASUO NAKANISHI A TOKYOBASED DISTRIBUTOR SAYS THAT JAPAN'S 200 MILLION ANNUAL DEMAND FOR HIGHEND AUDIO IS MOSTLY SUPPLIED FROM AMERICA THAT'S BECAUSE JAPANESE HIGHEND CONSUMERS ARE LOOKING FOR THE VERY BEST HE SAYS HIGHEND EQUIPMENT IS PRODUCED IN SMALL QUANTITIES AND SOLD IN SPECIALTY AUDIO STORES UNLIKE MASSMARKETED EQUIPMENT IT RARELY HAS LOTS OF KNOBS AND LEVERS IN FACT DESIGNERS OFTEN DESCRIBED WITH ADJECTIVES LIKE PASSIONATE AND MAVERICK ARE SO PARTICULAR ABOUT THE SOUND OF THEIR EQUIPMENT THAT THEY RARELY INCLUDE BASS AND TREBLE CONTROLS AND THE EQUIPMENT IS SO SPECIALIZED THAT HARDLY ANY COMPANIES PRODUCE FULL STEREO SYSTEMS FOCUSING INSTEAD ON PARTICULAR COMPONENTS WHAT'S MORE RECEIVERS ARE USUALLY BROKEN DOWN INTO TUNERS PREAMPLIFIERS THE BRAINS AND AMPLIFIERS THE BRAWN EVEN CABLES AND SPEAKER WIRE SOME OF WHICH LOOK AS IF THEY COULD SUSTAIN AN ASTRONAUT ARE SOLD SEPARATELY TO DESCRIBE THE SUBTLETIES OF SUCH SENSITIVE EQUIPMENT AUDIOPHILES OFTEN RESORT TO METAPHOR BASS IS DESCRIBED IN TERMS OF ITS LIQUIDITY TREBLE ITS AIRINESS OR DRYNESS WHILE SOME SYSTEMS ARE FORWARD OTHERS ARE LAID BACK SOME COMPONENTS ARE BRIGHT OTHERS DARK LASTLY SOUND IS MADE VISIBLE YOU CAN SEE THE MUSIC SAYS MR MACHIDERA AN IMAGE FREAK THAT'S WHAT I AM I LIKE TO FEEL THAT I'M SITTING BETWEEN ROWS 10 AND 15 IN CARNEGIE HALL ADDS STAN MALABUD A RETIRED PORT CAPTAIN FOR AN INTERNATIONAL TRADING COMPANY IF MR MALABUD COULD AFFORD TO HE SAYS HE WOULD BUY A PAIR OF 13000 WILSON SPEAKERS HE HAS ALREADY UPGRADED TO A 10000 KRELL AMPLIFIER AND A 4800 DAYSEQUERRA TUNER TO PICK UP LIVE BROADCASTS FROM LINCOLN CENTER AND BEYOND BEFORE THE UPGRADES HE NOTES I FELT LIKE I WAS SITTING IN THE BALCONY OFF TO ONE SIDE A CONFLUENCE OF FACTORS CONTRIBUTES TO AMERICAN COMPANIES' SUCCESS ABROAD A WEAK DOLLAR HAS MADE AMERICAN AUDIO PRODUCTS SEEM MORE AFFORDABLE EVEN THOUGH SYSTEMS CAN COST MORE THAN 100000 AND FOREIGN CONSUMERS OFTEN PAY TWICE THE DOMESTIC LIST PRICE MANUFACTURERS ALSO CITE THE RISE IN DISPOSABLE INCOME OVER THE PAST SEVERAL YEARS IN REGIONS LIKE THE PACIFIC RIM WITH MOST ESTABLISHED COMPANIES ONLY 10 TO 20 YEARS OLD HIGHEND MANUFACTURERS ALSO ATTRIBUTE THEIR GROWTH TO MORE BUSINESS KNOWHOW INCREASED ADVERTISING LEARNING THE TASTES OF OVERSEAS CONSUMERS AND FOSTERING BUSINESS RELATIONSHIPS WITH OVERSEAS DISTRIBUTORS MANY FOREIGN DISTRIBUTORS PAY FOR ADS IN AUDIO MAGAZINES WHICH INCLUDE AMERICAN JOURNALS THAT HAVE INCREASED THEIR CIRCULATION ABROAD COMPANIES HAVE ALSO CIRCULATED NEWSLETTERS UPDATING CUSTOMERS ON NEW PRODUCTS IT KEEPS THE CORD OF CONTACT BETWEEN THE MANUFACTURER AND THE END USER ALIVE SAYS JOYCE FLEMING OF MOD SQUAD INC A HIGHEND AUDIO MAKER IN LEUCADIA CALIF WHILE DOMESTIC RETAILERS HAVE BEEN HURT BY THE RECESSION THE COCOON EFFECT IS PROBABLY RESPONSIBLE FOR MUCH OF THE HIGHEND AUDIO INDUSTRY'S GROWTH OVER THE PAST FEW YEARS CONSUMERS SAY PEOPLE IN THE INDUSTRY ARE MORE INTERESTED IN SPENDING TIME AT HOME LEADING MANY TO INVEST IN HOME THEATER PRODUCTS SNELL ACOUSTICS HAVERHILL MASS DEVELOPED HOME THEATER BECAUSE WE COULD SEE THAT THAT'S WHERE THE HIGHEND GROWTH WAS HAPPENING SAYS COMPANY PRESIDENT WILLIAM OSGOOD SALES HE SAYS HAVE INCREASED 50 OVER THE LAST YEAR AND 20 OF THE COMPANY'S OVERALL SALES COME FROM HOMETHEATER SPEAKERS CONSUMERS THEMSELVES HAVE ALSO BECOME MORE SAVVY MORE AND MORE CONSUMERS ARE EDUCATING THEMSELVES ABOUT CONSUMER ELECTRONICS SAYS CYNTHIA UPSON VICE PRESIDENT OF COMMUNICATIONS FOR THE ELECTRONIC INDUSTRIES ASSOCIATION PEOPLE DIDN'T KNOW HOW GOOD SOUND QUALITY COULD BECOME BUT LARRY ARCHIBALD PUBLISHER OF STEREOPHILE MAGAZINE IS STILL SURPRISED THAT MANY PEOPLE CONTINUE TO SPEND 3000 ON MASSMARKET EQUIPMENT FOR THE SAME PRICE HE SAYS THE LOW END OF HIGH END CAN BLOW YOU AWAY YOU CAN HEAR IT IN SECONDS ADDS KATHY GORNIK OF THIEL AUDIO PRODUCTS CO LEXINGTON KY YOU HAVE A BRAIN AND AN EAR THAT'S 400 MILLION YEARS OF R&D AND THAT'S ALL YOU NEED SONY CORP PIONEER ELECTRONIC CORP AND OTHER MASS MARKETERS MAKE HIGHEND LINES THAT ARE OFTEN SOLD IN SPECIALTY AUDIO STORES AND SOME OF THEIR COMPONENTS FOR INSTANCE CERTAIN CD PLAYERS ARE TOUTED BY AUDIO CRITICS BUT GENERALLY SPEAKING SAYS HARRY PEARSON PUBLISHER OF THE ABSOLUTE SOUND MASSMARKET COMPANIES ARE CHARACTERIZED BY FLASHING LIGHTS IN THE HIGH END PERFORMANCE COMES FIRST HIGHEND EQUIPMENT DOES HAVE AN ACHILLES' HEEL THOUGH GOOD SYSTEMS ARE SO SENSITIVE THAT THEY CAN REVEAL THE SHORTCOMINGS OF BADLY RECORDED MUSIC SOME AUDIOPHILES THINK IT'S SAD OTHERS LIKE RICK FRYER OF SPECTRAL INC SUNNYVALE CALIF FIGURE THAT'S LIKE COMPLAINING THAT A RACE CAR WON'T CARRY GROCERIES WHO CARES HE ASKS YOU'VE WON THE RACE