SWISS VOLKSBANK WHICH IS POISED TO BE ACQUIRED BY CS HOLDING AG POSTED A 1992 LOSS OF 68 MILLION SWISS FRANCS 443 MILLION AFTER SETTING ASIDE RESERVES OF 292 MILLION FRANCS FOR BAD LOANS THE COMPANY PROPOSED ELIMINATING ITS DIVIDEND FOR 1992 VOLKSBANK WHICH HAS BEEN PLAGUED BY A RECESSIONARY SWISS ECONOMY AND A DEPRESSED DOMESTIC REAL ESTATE MARKET WAS EXPECTED TO TAKE SUBSTANTIAL PROVISIONS FOR BAD DEBTS BUT ANALYSTS WERE JOLTED BY THEIR SIZE LOANLOSS PROVISIONS AND DEPRECIATION JUMPED 83 TO 720 MILLION FRANCS FROM 394 MILLION FRANCS IN 1991 THE BANK HAD BEEN CONSISTENTLY PROFITABLE DURING THE PAST DECADE HOWEVER EARNINGS STARTED FALLING IN 1990 AND 1991 NET INCOME OF 684 MILLION FRANCS WAS ONLY MADE POSSIBLE BY THE RELEASE OF RESERVES ERWIN SIGRIST VOLKSBANK EXECUTIVE VICE PRESIDENT SAID CS HOLDING WAS AWARE OF THE LOSS POSITION WHEN IT AGREED TO THE ACQUISITION THE 1992 RESULTS WERE DISCLOSED TO CS HOLDING IN A PROVISIONAL FORM DURING THE NEGOTIATIONS AND FORMED THE BASIS FOR ITS OFFER HE SAID 9302100044 930210 MONSTER MASH JURASSIC PARK' OFFERS A HIGHSTAKES TEST OF HOLLYWOOD SYNERGY MCA AND MATSUSHITA PREPARE UNUSUAL MARKETING BLITZ BASED ON DINOSAUR MOVIE CALIBRATING LEVEL OF VIOLENCE BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL AND THEN THERE IS THE MERCHANDISING THE PICTURE BOOKS TSHIRTS VIDEO GAMES CAPS STUFFED TOYS COMIC BOOKS AND PETS THE ZOO IS THE CENTERPIECE OF AN ENORMOUS ENTERPRISE HOLLYWOOD IN MICHAEL CRICHTON'S BESTSELLER DISASTER EVENTUALLY STRIKES WHEN THE MAIN ATTRACTIONS OF JURASSIC PARK ZOO GENETICALLY ENGINEERED LIVE DINOSAURS GO HAYWIRE BUT NOT BEFORE AN AWESTRUCK GENETICIST URGES A RIVAL COMPANY'S DIRECTORS TO TAKE WHATEVER ACTION IS NECESSARY EVEN INDUSTRIAL ESPIONAGE TO MATCH THE BONANZA OF JURASSIC PARK MR CRICHTON MAY HAVE BEEN PRESCIENT ABOUT DINOSAUR GENETICS SOMEDAY BUT MORE IMMEDIATELY ABOUT THE DINOSAUR BUSINESS IN A CASE OF COMMERCE IMITATING ART THE MEGABUDGET STEVEN SPIELBERG MOVIE BASED ON THE BOOK IS THE CENTERPIECE OF ONE OF THE LARGEST AND MOST IMPORTANT TESTS TO DATE OF THE ENTERTAINMENT INDUSTRY'S MUCHDISCUSSED BUT RARELY ACHIEVED STRATEGY OF SYNERGY WHILE BALLYHOOED SUMMER MOVIES FREQUENTLY SPAWN ACRES OF TSHIRTS AND OTHER LICENSED MERCHANDISE OBSERVERS SAY THAT NEVER BEFORE HAS THERE BEEN SUCH A COORDINATED ADVANCE EFFORT INVOLVING ALL DIVISIONS OF A MODERN MULTINATIONAL ENTERTAINMENTINDUSTRY CONGLOMERATE THE STAKES IN THIS CASE ARE PARTICULARLY HIGH BECAUSE JURASSIC PARK TO BE RELEASED IN JUNE AT LEAST PARTLY CARRIES THE BURDEN OF JUSTIFYING MATSUSHITA ELECTRIC INDUSTRIAL CO'S 659 BILLION ACQUISITION OF MCA INC TWO YEARS AGO A TAKEOVER WHOSE PROMISED SYNERGISTIC FRUITS HAVE YET TO RIPEN IF THIS IS JUST YOUR GARDENVARIETY SUMMER MOVIE THEN WE'RE PRETTY STUPID SAYS SID SHEINBERG MCA'S PRESIDENT AND CHIEF OPERATING OFFICER RATHER HE SAYS MCA VIEWS THE FILM AS A STRATEGIC PROPERTY THAT WILL DEMONSTRATE THE STRENGTH OF THE COMBINED RELATIONSHIP OF MATSUSHITA AND MCA THE RISK IS HUGE WITH PRODUCTION COSTS OF 60 MILLION MORE THAN TWICE THE INDUSTRY AVERAGE AND PRINTS AND OPENING ADVERTISING COSTS OF 20 MILLION IN THE US ALONE JURASSIC PARK WILL BE ONE OF THE MOST EXPENSIVE MOVIES OF THE YEAR OTHER DIVISIONS OF MCA AND MATSUSHITA WHOSE PRIME WORLDWIDE BRAND IS PANASONIC HAVE SUNK MILLIONS OF DOLLARS MORE INTO MARKETING PLANS AND PREPARATION OF SPINOFF PROPERTIES SOMETHING THAT HOLLYWOOD USUALLY DOESN'T EVEN CONSIDER DOING UNTIL AFTER A FILM IS RELEASED POSSIBILITIES RANGE FROM A SATURDAY MORNING TV CARTOON SERIES TO A MAJOR THEMEPARK ATTRACTION THAT COULD COST MORE THAN THE FILM ITSELF IN HOLLYWOOD THE SWORD AS SKEPTICS DUB SYNERGY HAS BEEN TOSSED AROUND FOR MORE THAN A DECADE IT WAS USED TO JUSTIFY THE ACQUISITION OF COLUMBIA PICTURES BY COCACOLA CO IN 1982 A MARRIAGE THAT WAS ANNULLED AFTER BOTH PARTIES TACITLY CONCEDED THAT FILMS COULDN'T BE MARKETED THE WAY SOFT DRINKS ARE IT WAS THE INCANTATION GOVERNING THE MERGER OF TIME INC AND WARNER COMMUNICATIONS INC AND IT WAS SHOUTED FROM THE ROOFTOPS WHEN SONY CORP BOUGHT BOTH COLUMBIA AND TRISTAR PICTURES A YEAR BEFORE MCA WAS GOBBLED UP THE HOLY GRAIL IN THIS INDUSTRY IS TO TRY AND FIND A PROJECT THAT CAN WORK IN 10 DIFFERENT WAYS SAYS ROY FURMAN PRESIDENT OF FURMAN SELZ A NEW YORK INVESTMENT FIRM THAT SPECIALIZES IN ENTERTAINMENT AND MEDIA MOST OF THESE JUST DON'T WORK BUT JURASSIC PARK' SEEMS A GOOD SHOT BECAUSE IT HAS SUCH IMMEDIATE APPLICATIONS IN SO MANY WAYS STILL JURASSIC PARK IS A MOVIE AND SOME MOVIES FLOP AND SYNERGY MEANS SPREADING THAT KIND OF BOXOFFICE RISK THROUGHOUT AN INDUSTRIAL CONGLOMERATE IF YOU'VE GOT THE RIGHT TRAIN LEAVING THE STATION THEN GREAT YOU PICK UP ALL THE OTHER STUFF ALONG THE WAY SAYS BARRY DILLER THE FORMER FOX INC CHAIRMAN WHO IS NOW CHAIRMAN OF QVC NETWORK INC BUT IF YOU'RE ON THE WRONG TRAIN IT CAN BE A DISASTER MR SHEINBERG HAS SEEN POTENTIAL IN JURASSIC PARK FROM THE START HE BEAT OUT THREE OTHER STUDIOS BY OFFERING MR CRICHTON 2 MILLION UP FRONT FOR THE RIGHTS AND A SCREENPLAY DRAFT PLUS A SECRET WEAPON MR SPIELBERG MR SHEINBERG WAS MR SPIELBERG'S MENTOR IN HOLLYWOOD AND GAVE HIM HIS FIRST DIRECTING JOB MR SPIELBERG RETURNED THE FAVOR BY DIRECTING THE TOPGROSSING FILM OF ALL TIME ET FOR MCA'S UNIVERSAL PICTURES MCA NEEDS ANOTHER GIANT HIT TO ENERGIZE ITSELF AND MATSUSHITA BOTH AFFECTED BY WORLDWIDE ECONOMIC SLUGGISHNESS MCA HAS BEEN ON A COLD STREAK AT THE BOX OFFICE EVER SINCE THE MATSUSHITA ACQUISITION I'M PUTTING MY NECK ON THE LINE HERE AND IF THIS THING ISN'T DELIVERED AS PROMISED MR SHEINBERG TRAILS OFF WELL WE'VE GOT NEW OWNERS WHO ARE SUPPORTING THIS ON FAITH THERE'S A LOT RIDING ON IT MATSUSHITA AND MCA HADN'T COLLABORATED ON MUCH OF ANYTHING BEFORE THIS THE FIRST YEAR WAS RATHER DIFFICULT SAYS BOB GREENBERG VICE PRESIDENT AND GENERAL MANAGER OF COMMUNICATIONS AT PANASONIC'S US OPERATIONS WE'VE HAD TO LEARN ABOUT EACH OTHER'S BUSINESSES AND BUSINESS CYCLES AND ALSO EACH OTHER'S POTENTIAL BUT WHEN YOU START THINKING ABOUT IT AND WORK OUT THE ECONOMIES IT MAKES A LOT OF SENSE DOLLARWISE AND FROM A CREATIVE PERSPECTIVE TO LINK UP BUT AS OTHERS WHO HAVE TRIED TO EXPLOIT SYNERGIES HAVE LEARNED IT USUALLY TAKES A MAJOR CONCRETE PROJECT TO RALLY BEHIND EVEN THEN A MESHING OF ALL OF A COMPANY'S DIVISIONS MUCH LESS OF DIFFERENT BUSINESS CULTURES AND EVEN NATIONAL CULTURES IS DIFFICULT MR SHEINBERG SAW IN JURASSIC PARK A WAY TO FORCE THE PROCESS INTO HIGH GEAR AND HE LOUDLY PROCLAIMED THAT NOT ONLY WAS HE BACKING THE PROJECT 100 BUT EVERYONE ELSE WAS TOO SOON AFTER BUYING THE MOVIE RIGHTS HE STARTED CALLING REGULAR MEETINGS OF TOP BRASS NOT ONLY FROM THE MOVIE UNIT BUT ALSO FROM MCA'S PUBLISHING MERCHANDISING THEMEPARK MUSIC AND HOMEVIDEO DIVISIONS ATTEMPTS AT SYNERGY AT A LARGE ENTERTAINMENT COMPANY AREN'T EASY TO COORDINATE AND IMPORTANT PIECES CAN FALL THROUGH THE CRACKS WARNER BROS WHICH RELEASED THE SMASH CHRISTMAS HIT THE BODYGUARD WATCHED IN FRUSTRATION AS THE MOVIE'S SOUNDTRACK AND MAIN SINGLE BROKE SALES RECORDS TIME WARNER INC'S MUSIC UNIT DIDN'T RELEASE THEM BERTELSMANN AG'S ARISTA LABEL DID THERE WERE DOUBTS AMONG SOME MCA EXECUTIVES THAT JURASSIC PARK WAS THE RIGHT PROJECT SOME WERE CONCERNED THAT THE MOVIE MIGHT BE TOO VIOLENT FOR SMALL CHILDREN THUS THROWING A WRENCH INTO THE SYNERGY MACHINE SO IN AN UNUSUAL MOVE MR SHEINBERG ASKED TOP UNIVERSAL PICTURES MARKETING EXECUTIVES TO DRAFT A TWOPAGE MARKETING CONCEPT DESIGNED TO EXPLAIN MR SPIELBERG'S SOFTER VISION OF A JURASSIC PARK MUCH LESS THREATENING THAN THE BOOK VERSION IT QUICKLY PUT TO REST SPECULATION THAT THE FILM WOULD BE AS SOME WAGS PUT IT JAWS ON LAND BUT THE TRUE TRIAL BY FIRE THE INITIAL TEST OF WHETHER SYNERGY REALLY COULD WORK IN THE FIELD CAME LAST NOVEMBER AT A TWODAY MEETING AT MCA'S UNIVERSAL CITY CALIF HEADQUARTERS ABOUT 125 REPRESENTATIVES FROM MATSUSHITA MCA AND AFFILIATED MARKETING PEOPLE FROM AROUND THE WORLD WERE FLOWN IN IT WAS THE FIRST TIME OUR MOVIE GUY IN GERMANY MET THE PANASONIC GUY THERE SAYS DAVID WEITZNER PRESIDENT OF WORLDWIDE MARKETING AT MCA'S RECREATION SERVICES GROUP IT WAS A WAY TO GET THEM TO START SCHEMING AND DOING SOME THINGS TOGETHER THE MORNING BEGAN WITH AN ELABORATE ROLL CALL IN WHICH FORMAL INTRODUCTIONS WERE MADE MR SPIELBERG AND KATHLEEN KENNEDY ONE OF THE MOVIE'S PRODUCERS TOOK A BREAK FROM FILMING TO ADDRESS THE MEETING SIR RICHARD ATTENBOROUGH WHO PLAYS THE TYCOON WHO BUILDS THE PARK IN THE MOVIE WAS BROUGHT IN TO TALK ABOUT HIS PART PARTICULARLY FOR THE PANASONIC EXECUTIVES IT WAS A FIRST TASTE OF HOLLYWOOD GLAMOUR TOP EXECUTIVES AT MCA AND MATSUSHITA PRESENTED THEIR EARLY IDEAS SHOWED A TEASERTRAILER FROM THE FILM AND SPOKE OF WORLDWIDE MERCHANDISING PLANS AND SPINOFFS THEN REPRESENTATIVES FROM VARIOUS REGIONS BROKE INTO SMALL GROUPS TO LEARN ABOUT EACH OTHER'S BUSINESSES AND TO BRAINSTORM COUNTRYSPECIFIC MARKETING PLANS THE DISCUSSIONS AMOUNTED TO A CRASH COURSE THE FILM PEOPLE DIDN'T KNOW MUCH ABOUT THE ELECTRONICS BUSINESS AND THE PANASONIC EXECUTIVES WEREN'T WELL VERSED IN INTERNATIONAL FILM DISTRIBUTION THE NOVEMBER SESSION IS BEING FOLLOWED UP BY MEETINGS IN EVERY COUNTRY WHERE A MAJOR CAMPAIGN IS PLANNED AFTER ITS US PREMIERE IN JUNE THE FILM WILL OPEN A MONTH LATER IN JAPAN AND IN MOST OF THE REST OF THE WORLD NEXT FALL THERE HAVE BEEN OBSTACLES ON THE ROAD TO SYNERGY IN TRYING TO MIX THE EFFORTS OF MCA AND MATSUSHITA EXECUTIVES HAVE HAD TO GET AROUND CLASHING MARKETING OBJECTIVES IN THE US PANASONIC USUALLY SPENDS MOST OF ITS ADVERTISING BUDGET IN THE FOURTH QUARTER BEFORE CHRISTMAS AS IT HAPPENED THOUGH PANASONIC THIS YEAR PLANNED A SUBSTANTIAL AD CAMPAIGN IN MAY THAT CAN BE USED TO PITCH THE MOVIE YET SOME MCA EXECUTIVES WEREN'T SURE THEY WANTED A SCENE FROM JURASSIC PARK SHOWN AS A SIMULATED TV PICTURE IN A PANASONIC AD THEY'VE BEEN PUSHING JURASSIC PARK AS A BIGSCREEN EVENT AND FEARED THAT SOME PEOPLE WOULD GET THE IDEA THEY COULD SKIP THE THEATERS AND SEE THE FILM SOON ON THEIR TV SETS IN JAPAN EAGER FANS CAN ALREADY BUY TICKETS FOR THE FILM EXCITED PERHAPS BY A VISIT TO ONE OF 24000 NEIGHBORHOOD PANASONIC STORES THAT ARE SHOWING THE TEASERTRAILER OVER AND OVER ON TV SETS STORE MANAGERS ALREADY HAVE PASSED OUT MORE THAN 10 MILLION JURASSIC PARK BATTERY TESTERS AND ARE PERSONALLY TELLING THEIR CLIENTS NOT TO MISS THE FILM BECAUSE IT'S GOING TO BE BETTER THAN GODZILLA THERE'S ALSO A JAPANESE SCRATCHANDWIN GAME THAT AWARDS JURASSIC PARK CAPS AND OTHER MERCHANDISE ON THE BACK OF THE CARDS CUSTOMERS ARE ASKED TO WRITE THEIR NAME AND ADDRESS AND CIRCLE APPLIANCES AND ELECTRONIC ITEMS THEY MIGHT WANT TO BUY THE EXTRA MARKETING MUSCLE IN JAPAN IS CRITICAL THE COUNTRY REPRESENTS BY FAR THE LARGEST MARKET FOR AMERICAN MOVIES OUTSIDE OF THE US AND THE ADVANCE PROMOTIONS IN THE PANASONIC OUTLETS ALSO ARE BEING USED TO SMOOTH OUT GLITCHES BEFORE THE MARKETING PROGRAM IS REPRODUCED THROUGHOUT EUROPE JURASSIC PARK IS ALSO A KEY TO THE LAUNCH OF A NEW PRODUCT MATSUSHITA IS HELPING TO PRODUCE THE HARDWARE FOR A DIGITAL INTERACTIVE HOMEENTERTAINMENT SYSTEM THAT IS BEING DEVELOPED BY 3D0 CO MCA IS DEVELOPING JURASSIC PARK SOFTWARE FOR THE SYSTEM WITH THE HELP OF MR SPIELBERG A FANATICAL GAME PLAYER MOVIE COMPANIES OFTEN LICENSE AS MUCH MERCHANDISE AS THEY CAN FOR SUMMER FILMS WITH KIDS' APPEAL USUALLY GETTING A 7 TO 10 ROYALTY BUT MCA HAS TRIED TO KEEP AS MUCH INHOUSE AS POSSIBLE BOTH TO MAKE MORE MONEY AND TO BETTER COORDINATE AN OVERALL MARKETING PROGRAM MCA RECORDS WILL RELEASE THE MOVIE'S SOUNDTRACK MCA'S WINTERLAND PRODUCTIONS IS THE EXCLUSIVE TSHIRT MAKER ITS PUTNAM BOOK UNIT WILL RELEASE CHILDREN'S BOOKS A JURASSIC PARK WATER RIDE WHICH COULD COST AROUND 70 MILLION ALREADY EXISTS AS A THREEDIMENSIONAL MOCKUP AND COULD BE RUNNING AT UNIVERSAL STUDIOS FLORIDA IN TWO YEARS MANY MCA DIVISIONS ARE SHARING THE COST OF PROMOTING THE FILM AN UNUSUAL PHENOMENON IN HOLLYWOOD THE THEMEPARK DIVISION WILL PITCH THE MOVIE IN TV ADVERTISING FOR ITS TWO PARKS TOURISTS AT UNIVERSAL STUDIOS IN HOLLYWOOD AND FLORIDA GET FLIERS ABOUT THE MOVIE WHEN THEY BUY TICKETS AT THE HOLLYWOOD TOUR A JURASSIC PARK INFORMATION CENTER HAS BEEN ERECTED THAT LOOKS LIKE THE GATES TO THE PARK IN THE MOVIE AT THE CENTER THE FILM'S TRAILER IS RUNNING NONSTOP BROCHURES ARE AVAILABLE AND TSHIRTS ARE FOR SALE ALL PLASTERED WITH THE SAME STYLIZED LOGO THAT IS USED ON SETS IN THE FILM THE MORE THAN 100 LICENSEES WHO WILL SELL JURASSIC PARK MERCHANDISE WERE BROUGHT TO UNIVERSAL'S LOT FOR AN UNUSUAL TWODAY MEETING LAST OCTOBER TO DISCUSS HOW THEY COULD HELP EACH OTHER LEVERAGE THE FILM'S PRODUCTS THREE RIVAL BOOK COMPANIES FOR EXAMPLE ARE WORKING TOGETHER TO SECURE DISPLAY SPACE AT A NUMBER OF THE NATION'S LEADING CHAINS NONE OF THE LICENSEES NEEDED TO BE REMINDED OF THE DICK TRACY MUGS AND FIGURINES THAT STILL LITTER SHELVES OF UNDERABUCK SHOPS HOW RETAILERS AND THE PUBLIC WILL FEEL ABOUT THE COORDINATED ONSLAUGHT REMAINS TO BE SEEN A FIRST HINT MIGHT COME FROM A SEMIPUBLIC KICKOFF TONIGHT WHEN TOP MCA EXECUTIVES MR SPIELBERG ACTORS IN THE MOVIES AND MORE THAN 1000 RETAILERS AND LICENSEES WILL GATHER AROUND THE DINOSAUR SKELETONS IN THE ROTUNDA OF NEW YORK'S MUSEUM OF NATURAL HISTORY AS PART OF TOY FAIR THE ANNUAL EVENT AT WHICH STORE OWNERS DECIDE WHICH TOYS TO PURCHASE 9302100043 930210 INTERNATIONAL BRIEF QANTAS AIRWAYS LTD AUSTRALIA POSTPONES OFFER OF 75 INTEREST IN AIRLINE THE AUSTRALIAN GOVERNMENT SAID IT IS POSTPONING UNTIL NEXT FALL ITS PLANNED INITIAL PUBLIC OFFERING OF ITS 75 STAKE IN QANTAS AIRWAYS LTD IN ORDER TO OPTIMIZE THE WORTH OF THE HOLDING THE GOVERNMENT HAD INTENDED TO COMPLETE THE OFFERING IN THE CURRENT FISCAL YEAR ENDING JUNE 30 1993 THE GOVERNMENT HAS AN AGREEMENT TO SELL 25 OF QANTAS TO BRITISH AIRWAYS PLC FOR 665 MILLION AUSTRALIAN DOLLARS US446 MILLION THE REMAINDER IS TO BE OFFERED TO THE PUBLIC WITH THE COMPANY THEN LISTED ON THE AUSTRALIAN STOCK EXCHANGE ANALYSTS AND FUND MANAGERS HAD BEEN SKEPTICAL FROM THE OUTSET THAT QANTAS COULD BE SOLD THIS FISCAL YEAR THE AUSTRALIAN STOCK MARKET HAS BEEN CALLED ON TO SUPPORT SEVERAL MAJOR SHARE ISSUES THIS YEAR INCLUDING THE REFLOATING OF SHARES IN WOOLWORTHS LTD THE NATION'S SECOND LARGEST RETAILER WHICH HAD TO BE POSTPONED 9302100042 930210 INTERNATIONAL BRIEF REED INTERNATIONAL PLC BRITISH PUBLISHING FIRM SELLS STAKE IN BSKYB AS EXPECTED BRITISH PUBLISHER REED INTERNATIONAL PLC AS EXPECTED SOLD ITS 366 STAKE IN SATELLITE TELEVISION VENTURE BRITISH SKY BROADCASTING LTD FOR 623 MILLION 896 MILLION TO OTHER PARTNERS IN THE VENTURE GRANADA GROUP PLC PEARSON PLC AND CHARGEURS SA ALL PRINCIPAL SHAREHOLDERS IN BSKYB WILL ALSO ASSUME THE LOAN GUARANTEES OF THE COMPANY REED'S STAKE IS BEING DIVIDED EQUALLY AMONG THE THREE BUYERS THUS GRANADA'S STAKE IN BSKYB WILL RISE TO 135 FROM 122 WHILE BOTH PEARSON'S AND CHARGEURS' HOLDING IN THE VENTURE RISES TO 175 GRANADA AND PEARSON ARE BRITISH CONCERNS CHARGEURS IS A DIVERSIFIED FRENCH COMPANY NEWS CORP AN INTERNATIONAL MEDIA CONCERN OWNS ABOUT 50 OF BSKYB LAST WEEK REED SAID IT WAS NEGOTIATING TO DISPOSE OF THE STAKE THE AGREEMENT IS CONDITIONAL UPON SUCCESSFUL COMPLETION OF BSKYB'S REFINANCING AGREEMENTS ON ITS GUARANTEED LOAN FACILITIES 9302100041 930210 ADAC LABORATORIES EARNINGS MILPITAS CALIF ADAC LABORATORIES SAID RECORD BOOKINGS FOR ITS MEDICALIMAGING EQUIPMENT CAUSED FISCAL FIRSTQUARTER NET INCOME TO ALMOST DOUBLE TO 41 MILLION THE RESULTS FOR THE QUARTER ENDED DEC 27 EQUAL TO EIGHT CENTS A SHARE ROSE 89 FROM THE YEAREARLIER PERIOD'S 22 MILLION OR FIVE CENTS A SHARE REVENUE ROSE 30 TO 363 MILLION FROM 278 MILLION 9302100040 930210 BUSINESS BRIEF GOODYEAR PROPOSES STOCK SPLIT BOOSTS PAYOUT AS NET FELL 17 FOR 4TH PERIOD THE AKRON OHIO TIRE MAKER ALSO SAID IT WOULD CUT 975 SALARIED WORKERS AS A COSTREDUCTION MEASURE GOODYEAR SAID THE JOB CUTS EQUIVALENT TO 3 OF ITS SALARIED WORK FORCE OF 31000 WOULD BE MADE OVER THE NEXT YEAR GOODYEAR POSTED FOURTHQUARTER PROFIT OF 875 MILLION OR 122 A SHARE DOWN FROM THE YEAREARLIER 1051 MILLION OR 165 A SHARE EXCLUDING SPECIAL ITEMS AND CHARGES IN BOTH PERIODS PROFIT WAS 823 MILLION OR 114 A SHARE UP FROM 561 MILLION OR 87 CENTS A SHARE THE MOST RECENT SHOWING WAS AT THE LOW END OF ANALYSTS' ESTIMATES THE SPLIT AND HIGHER PAYOUT EQUAL TO 120 A SHARE ANNUALLY ON A PRESPLIT BASIS SIGNAL INCREASING OPTIMISM AT GOODYEAR WHICH HAS EMERGED FROM A SLUMP THAT FORCED IT TO SLASH ITS DIVIDEND IN LATE 1990 TO 40 CENTS FROM 180 THE COMPANY WHICH WILL SEEK AUTHORIZATION FOR THE SPLIT AT ITS APRIL 5 ANNUAL MEETING PREDICTED FURTHER IMPROVEMENTS IN 1993 RESULTS BUT JEANCLAUDE GRUET AN ANALYST WITH UBS SECURITIES SAID HE IS GETTING A LITTLE MORE NERVOUS ABOUT GOODYEAR'S PROSPECTS IN 1993 AND MAY REDUCE HIS FORECAST BECAUSE OF A SOFTENING IN THE EUROPEAN TIRE BUSINESS THOUGH THE DIVIDEND INCREASE WILL ONLY COST GOODYEAR ANOTHER 145 MILLION A YEAR I WOULD HAVE PREFERRED TO SEE THEM USE IT TO REDUCE DEBT HE SAID GOODYEAR SHARES CLOSED AT 71 DOWN 75 CENTS ON THE NEW YORK STOCK EXCHANGE THE PROPOSED STOCK SPLIT AND DIVIDEND INCREASE WERE ANNOUNCED AFTER THE CLOSE OF TRADING FOURTHQUARTER SALES INCREASED 5 TO 293 BILLION FROM 278 BILLION GOODYEAR BENEFITED FROM HIGHER TIRE SALES AND LOWER INTEREST EXPENSES THE 1992 FOURTH QUARTER INCLUDED A GAIN OF 759 MILLION FOR THE SALE OF THE COMPANY'S POLYESTER RESIN ASSETS WHICH WAS LARGELY OFFSET BY CHARGES FOR WORK FORCE REDUCTIONS THE SALE AND WRITEOFF OF ASSETS THE SETTLEMENT OF A LAWSUIT AND EARLY DEBT RETIREMENT THE 1991 FOURTH QUARTER INCLUDED A GAIN OF 49 MILLION FROM THE SALE OF A TEXTILE PLANT AND A TAX BENEFIT FOR THE YEAR GOODYEAR HAD A NET LOSS OF 6586 MILLION OR 922 A SHARE INCLUDING NONCASH CHARGES OF 101 BILLION OR 1415 A SHARE TO ADOPT ACCOUNTING CHANGES THE CHANGES APPLIED RETROACTIVELY TO GOODYEAR'S 1992 FIRST QUARTER ARE FOR RETIREE HEALTH BENEFITS AND INCOME TAXES IN 1991 GOODYEAR HAD NET OF 966 MILLION OR 161 A SHARE SALES IMPROVED TO 1178 BILLION FROM 1091 BILLION 9302100039 930210 BUSINESS BRIEF VF CORP FIRM POSTS 46 INCREASE IN 4THQUARTER EARNINGS VF CORP SAID INCREASED SALES AND EXPANDING MARGINS PUSHED FOURTHQUARTER EARNINGS 46 HIGHER FOR THE QUARTER ENDED JAN 2 NET INCOME ROSE TO 706 MILLION OR 118 A SHARE FROM 484 MILLION OR 83 CENTS A SHARE REVENUE INCREASED 21 TO 103 BILLION THE COMPANY IN WYOMISSING PA REPORTED DOUBLEDIGIT SALES INCREASES IN ITS JEANSWEAR ACTIVEWEAR INTERNATIONAL AND OTHER BUSINESS GROUPS VF WHICH MAKES LEE AND WRANGLER JEANS SEVERAL LINES OF INTIMATE WEAR AND JANSPORT BACKPACKS SAID PROFITABILITY IMPROVED IN BOTH ITS JEANSWEAR AND INTIMATE APPAREL GROUPS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY VF SHARES CLOSED AT 55625 A SHARE UP 625 CENTS FOR THE YEAR NET INCOME ROSE 47 TO 237 MILLION OR 397 A SHARE FROM 1613 MILLION OR 275 A SHARE SALES INCREASED 30 TO 382 BILLION VF REPORTED A SLIGHT DECLINE IN OPERATING PROFIT FOR THE YEAR IN ITS INTERNATIONAL OPERATIONS CITING AN EXPANDED MARKETING PROGRAM FOR LEE JEANS IN EUROPE 9302100038 930210 BUSINESS BRIEF KENTUCKY CENTRAL LIFE INSURANCE CO PACT FOR 100 MILLION INFUSION FROM WHR IS TERMINATED KENTUCKY CENTRAL LIFE INSURANCE CO SAID AN AGREEMENT THAT WOULD HAVE GIVEN IT A 100 MILLION INFUSION HAS BEEN TERMINATED THE LEXINGTON KY LIFE INSURANCE COMPANY HAD SIGNED A LETTER OF INTENT LAST DECEMBER WITH WHR MANAGEMENT CO OF NEW YORK UNDER WHICH TWO OF THE INVESTMENT CONCERN'S FUNDS THE WHITMAN HEFFERNAN AND RHEIN WORKOUT FUNDS II AND IIA WOULD MAKE A 100 MILLION INVESTMENT IN EXCHANGE FOR SECURITIES AND REPRESENTATION ON THE COMPANY'S BOARD KENTUCKY CENTRAL WOULDN'T SAY WHICH PARTY CALLED OFF THE ACCORD DESPITE THE FAILURE TO COMPLETE THE AGREEMENT KENTUCKY CENTRAL SAID IT IS FULLY CAPABLE OF MEETING ITS POLICYHOLDERS' NEEDS IT SAID IT IS HOLDING TALKS WITH OTHER POTENTIAL PARTNERS WHILE CUTTING COSTS AND CONSOLIDATING OPERATIONS IT ALSO SAID IT PLANS TO DIVEST ITSELF OF NONCORE BUSINESSES THE COMPANY DECLINED TO ELABORATE 9302100037 930210 WHO'S NEWS DATAPOINT INC DATAPOINT INC SAN ANTONIO TEXAS CHAIRMAN ASHER B EDELMAN 52 YEARS OLD WAS NAMED TO THE ADDITIONAL NEW POST OF CHIEF EXECUTIVE OFFICER DORIS D BENCSIK 61 WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MRS BENCSIK A CONSULTANT AND PRESIDENT AND CHIEF EXECUTIVE OF MODULAR COMPUTER SYSTEMS INC OF FORT LAUDERDALE FLA HAS BEEN A DIRECTOR OF THE NETWORKING AND INFORMATION PROCESSING COMPANY SINCE 1985 9302100036 930210 INTERNATIONAL BRIEF CHARTER CONSOLIDATED PLC FIRM WILL SELL 383 STAKE IN JOHNSON MATTHEY PLC CHARTER CONSOLIDATED PLC AGREED TO SELL ITS 383 STAKE IN PRECIOUSMETALS GROUP JOHNSON MATTHEY PLC FOR ABOUT 342 MILLION 492 MILLION THE UK INDUSTRIAL MATERIALS CONCERN SAID IT WILL SELL 20 OR 37 MILLION OF THE SHARES TO A NEW COMPANY THAT IS JOINTLY OWNED BY JOHANNESBURG CONSOLIDATED INVESTMENT CO AND MINORCO OF SOUTH AFRICA FOR 1878 MILLION THE REMAINING 183 OR 339 MILLION SHARES ARE TO BE SOLD TO BARCLAYS DE ZOETE WEDD LTD AND UBS PHILLIPS & DREW LTD FOR 1546 MILLION THE UK BROKERAGE FIRMS WILL THEN PLACE THE SHARES WITH INVESTORS A DEAL HAD BEEN EXPECTED AFTER CHARTER CONSOLIDATED CONFIRMED LAST MONTH THAT IT WAS TRYING TO SELL THE STAKE 9302100035 930210 WHO'S NEWS OLD KENT FINANCIAL CORP OLD KENT FINANCIAL CORP GRAND RAPIDS MICH PETER F SECCHIA WAS ELECTED TO THE BOARD OF THIS REGIONAL BANK HOLDING COMPANY EXPANDING THE BOARD'S SIZE TO 12 MEMBERS MR SECCHIA 55 IS CHAIRMAN OF UNIVERSAL COS 9302100034 930210 BUSINESS BRIEF GENDEX CORP COMPANY AGREES TO MERGE WITH DENTSPLY INTERNATIONAL GENDEX CORP DES PLAINES ILL SAID IT AGREED DEFINITIVELY TO MERGE WITH DENTSPLY INTERNATIONAL INC BY EXCHANGING 144 MILLION OF ITS SHARES FOR ALL OF DENTSPLY'S SHARES IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY GENDEX'S SHARES WERE QUOTED AT 4350 DOWN 375 CENTS GIVING THE TRANSACTION AN INDICATED VALUE OF 6264 MILLION AS PREVIOUSLY ANNOUNCED GENDEX WHICH MAKES DENTAL AND MEDICAL XRAY EQUIPMENT SAID THE TRANSACTION STRUCTURED AS A POOLING OF INTERESTS IS EXPECTED TO ADD 400 MILLION TO ITS ANNUAL SALES AND WILL ADD TO ITS EARNINGS PER SHARE THE COMBINED COMPANY WILL BE NAMED DENTSPLY INTERNATIONAL AND GENDEX WILL CONTINUE AS A DIVISION OF THE NEW COMPANY THE TRANSACTION HAS BEEN APPROVED BY THE BOARDS OF BOTH COMPANIES AND REQUIRES THE APPROVAL OF THE STOCKHOLDERS OF BOTH COMPANIES AS WELL AS REGULATORY APPROVALS THE TRANSACTION IS EXPECTED TO CLOSE IN THE SECOND QUARTER DENTSPLY BASED IN YORK PA MAKES AND MARKETS DENTAL SUPPLIES 9302100033 930210 BUSINESS BRIEF WHIRLPOOL CORP APPLIANCE MAKER REPORTS RECORD 4THQUARTER EARNINGS WHIRLPOOL CORP BENTON HARBOR MICH SAID FOURTHQUARTER EARNINGS ROSE 55 TO A RECORD 62 MILLION OR 87 CENTS A SHARE BECAUSE OF HIGHER APPLIANCE SALES AND COSTCUTTING EFFORTS IN THE YEAREARLIER QUARTER WHIRLPOOL HAD NET INCOME OF 40 MILLION OR 58 CENTS A SHARE THE APPLIANCE MAKER SAID THE RESULTS INCLUDED PRETAX RESTRUCTURING COSTS OF 18 MILLION IN THE LATEST QUARTER AND 11 MILLION IN THE YEAREARLIER PERIOD WHILE OTHER APPLIANCE MAKERS ARE STRUGGLING THE STRONG RESULTS HELPED WHIRLPOOL'S SHARES REACH A 52WEEK HIGH IN LATE NEW YORK STOCK EXCHANGE TRADING THEY WERE UP 2875 AT 51625 REVENUE IN THE QUARTER ROSE 8 TO 184 BILLION FROM 171 BILLION THE COMPANY SAID EACH OF ITS THREE MAJOR UNITS IN THE US EUROPE AND LATIN AMERICA HAD RECORD YEARS 9302100032 930210 BUSINESS BRIEF AETNA LIFE & CASUALTY CO CALIFORNIA OFFICIAL REJECTS MOVE TO END AUTO INSURING CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI REJECTED AETNA LIFE & CASUALTY CO'S FILING TO WITHDRAW FROM THE STATE'S AUTOMOBILE MARKET SAYING THAT THE COMPANY FAILED TO GIVE ADEQUATE NOTICE AND WOULD HAVE TO CONTINUE TO ACCEPT NEW BUSINESS UNTIL JUNE 2 CITING UNPROFITABILITY AUTOMOBILE INSURANCE CO OF HARTFORD AN AETNA UNIT FILED FOR WITHDRAWAL FROM THE STATE AUTO MARKET ON FEB 1 AND SAID IT WOULD STOP WRITING POLICIES IMMEDIATELY THE COMPANY INSURES LESS THAN 1 OF THE STATE'S DRIVERS UNDER STATE LAW A COMPANY MUST GIVE 60 DAYS' NOTICE TO THE STATE AND 120 DAYS' NOTICE TO ITS AGENTS BEFORE IT CAN WITHDRAW A SPOKESMAN FOR AETNA HARTFORD CONN SAID THE DEPARTMENT HAS AN ISSUE OVER THE TIMING WE ARE DISCUSSING THAT WITH THEM OUR PLAN HASN'T CHANGED AT ALL HE NOTED THE PROPOSAL ONLY INVOLVES AETNA'S PERSONAL AUTOMOBILE INSURANCE BUSINESS IN CALIFORNIA 9302100031 930210 BUSINESS BRIEF RAYONIER TIMBERLANDS LP SHARES JUMP 9 ON BOOST IN QUARTERLY DISTRIBUTION SHARES OF RAYONIER TIMBERLANDS LP JUMPED 9 ON NEWS THAT IT BOOSTED ITS QUARTERLY DISTRIBUTION BY 27 TO 115 A UNIT FROM 90 CENTS RAYONIER A STAMFORD CONNBASED TIMBERLANDS LIMITED PARTNERSHIP THAT IS ENTERING ITS EIGHTH YEAR OF OPERATIONS OF ITS 15YEAR INITIAL TERM SAID IT EXPECTS TO MAINTAIN THE NEW DISTRIBUTION BARRING UNFORESEEN DEVELOPMENTS AND WILL REVIEW THE DISTRIBUTION LEVEL ANNUALLY IT SAID IT DECIDED TO RAISE THE DISTRIBUTION BECAUSE IS UNLIKELY TO NEED ALL THE CASH BALANCE IN ITS PRIMARY ACCOUNT BEFORE THE 15YEAR TERM EXPIRES RAYONIER'S UNITS ROSE 375 YESTERDAY TO CLOSE AT 37 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE FIRSTQUARTER DISTRIBUTION IS PAYABLE MARCH 31 TO UNITHOLDERS OF RECORD FEB 26 ITT RAYONIER INC A FOREST PRODUCTS UNIT OF INDUSTRIAL AND FINANCIAL SERVICES COMPANY ITT CORP IS THE GENERAL PARTNER OF RAYONIER TIMBERLANDS 9302100030 930210 BUSINESS BRIEF COCACOLA CO JOINT VENTURE WITH BOTTLER COKE CONSOLIDATED IS MULLED COCACOLA CO ATLANTA IS IN TALKS TO SET UP A JOINT VENTURE WITH ONE OF ITS BIGGEST BOTTLERS TO RUN SOME OF ITS SOUTHERN US BOTTLING TERRITORIES UNDER THE PLAN COCACOLA BOTTLING CO CONSOLIDATED IN CHARLOTTE NC WOULD TAKE A 50 STAKE IN THREE TERRITORIES OWNED BY COCACOLA IN NORTH AND SOUTH CAROLINA THE VENTURE WOULD ADD 15 OR 90 MILLION TO THE ANNUAL CASE SALES OF COKE CONSOLIDATED WHICH WOULD PROVIDE MANAGEMENT AND PRODUCTION SERVICES FOR THE BOTTLING OPERATIONS COKE CONSOLIDATED WOULD GIVE COCACOLA CO A 50 SHARE IN SOME OF ITS SOUTH CAROLINA BOTTLING TERRITORIES HOWEVER THE COMPANIES HAVE NOT YET DETERMINED WHICH TERRITORIES WOULD BE INCLUDED IN THE TRANSACTION COCACOLA CO HOLDS A 30 EQUITY STAKE IN COKE CONSOLIDATED THE COMPANY'S SECONDLARGEST BOTTLER WHICH PRODUCES 7 OF THE US VOLUME OF COCACOLA'S SOFT DRINKS WE WEREN'T ABLE TO BUY THESE TERRITORIES OUTRIGHT DUE TO OUR LEVERAGED POSITION SO THIS IS A NICE FIT FOR US SAID A COKE CONSOLIDATED EXECUTIVE 9302100029 930210 INTERNATIONAL BRIEF NESTLE SA WATER BRANDS WILL BE SOLD TO MEET EC ANTITRUST ORDER SEEKING TO COMPLY WITH A EUROPEAN COMMUNITY ANTITRUST ORDER IN ITS PURCHASE OF SOURCE PERRIER SA SWISS FOOD GIANT NESTLE SA SAID IT WOULD SELL SEVERAL OF ITS MINERAL WATER BRANDS TO FRANCE'S CASTEL GROUP FOR AS MUCH AS 750 MILLION FRENCH FRANCS 1339 MILLION EC COMMISSION COMPETITION OFFICIALS SAID THEY MUST STUDY THE DEAL BEFORE DECIDING WHETHER TO APPROVE THE PERRIER PURCHASE NESTLE SAID IT WOULD SELL THE OPERATIONS OF NINE WATER SOURCES TO SOCIETE D'INVESTISSEMENT D'AQUITAINE OF FRANCE THE HOLDING COMPANY FOR THE CASTEL GROUP FOR NOT MORE THAN 750 MILLION FRENCH FRANCS THE OPERATIONS OF SAINTYORRE VICHYCELESTINS THONON CHATEAUNEUF CHARRIER REGINA ROZANA GANTIES AND SARGANTALE HAD COMBINED 1991 SALES OF 620 MILLION FRANCS NESTLE'S DIVESTITURE OF THE WATER SOURCES IS INTENDED TO FULFILL A JULY 1992 RULING BY THE BRUSSELS COMMISSION WHICH WAS CONCERNED THAT THE SWISS COMPANY'S TAKEOVER OF PERRIER WOULD GIVE NESTLE AND THE FRENCH FOOD GROUP BSN SA A DUOPOLY IN THE LUCRATIVE FRENCH MARKET FOR BOTTLED WATER 9302100028 930210 BUSINESS BRIEF FIRST BRANDS CORP FISCAL 2NDQUARTER PROFIT CLIMBS 28 TO 149 MILLION FIRST BRANDS CORP DANBURY CONN SAID FISCAL SECONDQUARTER NET INCOME ROSE 28 DRIVEN BY INCREASED SALES OF GLADLOCK PLASTIC BAGS NEW AUTOMOTIVE PRODUCTS AND EXPORTS IN THE QUARTER ENDED DEC 31 THE HOUSEHOLD AND AUTOMOTIVE PRODUCTS COMPANY HAD PROFIT OF 149 MILLION OR 68 CENTS A SHARE UP FROM 117 MILLION OR 53 CENTS A SHARE A YEAR EARLIER THE PREVIOUS YEAR'S RESULTS INCLUDED A CHARGE OF TWO CENTS A SHARE FOR REPURCHASED DEBT AND A ONETIME RESTRUCTURING CHARGE OF NINE CENTS A SHARE REVENUE ROSE 10 TO 268 MILLION FROM 243 MILLION ABOUT HALF OF THE REVENUE GROWTH WAS FROM THE A&M PRODUCTS BUSINESS ACQUIRED LAST MAY FIRST BRANDS' CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALFRED E DUDLEY SAID SALES OF THE GLADLOCK BAGS AND AUTOMOTIVE PRODUCTS SHOULD CONTINUE TO GROW AND THE COMPANY PLANS TO INCREASE ADVERTISING SPENDING THESE FACTORS TOGETHER WITH THE LOWER INTEREST EXPENSE ARE EXPECTED TO PRODUCE STRONG PERFORMANCES IN THE THIRD AND FOURTH QUARTERS HE SAID 9302100027 930209 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 9302100026 930210 INTERNATIONAL BRIEF TOTAL SA NET PLUNGED 52 IN 1992 SEVERAL FACTORS ARE BLAMED COLLAPSED REFINING MARGINS AND SHIPPING RATES COMBINED TO PUSH FRENCH OIL COMPANY TOTAL SA'S NET INCOME DOWN 52 TO 28 BILLION FRANCS 4997 MILLION IN 1992 ALSO UNDERMINING THE 1992 BOTTOM LINE WERE SOME EXCEPTIONAL ITEMS INCLUDING REDUCED ASSET VALUES THE LOSS OF OPERATING EARNINGS AFTER A REFINERY EXPLOSION WEAKER CRUDE OIL PRICES AND AN ERODED DOLLAR RELATIVE TO THE FRANC BUT TOTAL OFFICIALS SAID THE COMPANY WOULD MAINTAIN A DIVIDEND OF SEVEN FRANCS A SHARE THE PRELIMINARY FIGURES WEREN'T MUCH OF A SURPRISE AFTER COMPANY CHAIRMAN SERGE TCHURUK'S WARNING TO SHAREHOLDERS IN DECEMBER THAT THE OIL GROUP'S BOTTOM LINE WOULD BE DOWN BY AT LEAST 47 THE AMOUNT OF TOTAL'S FIRSTHALF 1992 PROFIT DROP TOTAL'S FIRSTHALF 1992 FIGURES WERE A SHOCK COMING AFTER A PUBLIC SHARE OFFER OF A LARGE PART OF THE FRENCH STATE STAKE IN TOTAL ON THE FRENCH AND INTERNATIONAL MARKETS AND TWO CONSECUTIVE YEARS OF IMPRESSIVE PROFIT RISES 9302100025 930210 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH RATE INCREASES ARE SOUGHT FOR TOTAL OF 130 MILLION AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK FILED FOR A SERIES OF TELEPHONE RATE INCREASES TOTALING 130 MILLION THE TELECOMMUNICATIONS COMPANY FILED WITH THE FEDERAL COMMUNICATIONS COMMISSION ON FEB 5 FOR THE RATE INCREASES WHICH WOULD TAKE EFFECT FEB 19 PENDING APPROVAL RATES ON DIRECTDIALED STATETOSTATE WEEKDAY CALLS WOULD INCREASE 12 RATES ON TENMINUTE DIRECTDIALED INTERNATIONAL CALLS TO 32 COUNTRIES AND AREAS WOULD INCREASE AN AVERAGE OF 6 CONSUMERS WHO USE AN OPERATOR TO MAKE LONGDISTANCE CALLS WOULD INCUR A SERVICE CHARGE OF 194 UP FROM 188 AND DOMESTIC OPERATORHANDLED CALLINGCARD AND COIN CALLS WOULD INCREASE BY A MAXIMUM OF TWO CENTS A MINUTE 9302100024 930210 ABREAST OF THE MARKET FEARS ABOUT AIRLINES' PROFITABILITY CAUSE STOCK AVERAGES TO DECLINE BY ANITA RAGHAVAN AND VITO RACANELLI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS TUMBLED AS SKITTISH INVESTORS CLOBBERED AIRLINES ON FEARS THAT THE DEBTRIDDLED INDUSTRY WILL LOSE MONEY AGAIN VOLUME ON THE BIG BOARD TOTALED 233620000 SHARES COMPARED WITH MONDAY'S 240350000 SHARES DECLINERS OUTNUMBERED ADVANCERS 1206 TO 715 ROBERT KAHAN SENIOR MANAGING DIRECTOR AT MONTGOMERY SECURITIES SAID HE THINKS YESTERDAY'S SETBACK IS A VERY BULLISH SIGN FOR THE MARKET HE SAID DECLINES IN WORLD STOCK MARKETS CAST A CLOUD OVER THE NEW YORK MARKET WHEN IT OPENED YESTERDAY THAT COMBINED WITH SOME PROFITTAKING CONTRIBUTED TO THE SELLOFF BUT MR KAHAN SAID IT WON'T BE LONG BEFORE PRICES START CLIMBING AGAIN THIS IS A VERY HEALTHY RETRENCHMENT HE SAID I DON'T DOUBT THAT IN THE NEXT DAY OR TWO THAT WE ARE GOING TO RESUME THE UPTREND LEADING YESTERDAY'S RETREAT WAS A STEEP SELLOFF IN TRANSPORTATION STOCKS THE DOW JONES TRANSPORTATION AVERAGE PLUNGED 3021 POINTS OR 190 TO 155940 AS INVESTORS POUNDED AIRLINE STOCKS AFTER NATWEST SECURITIES ANALYST MICHAEL DERCHIN ADVISED CLIENTS TO UNDERWEIGHT THEM IN PORTFOLIOS MR DERCHIN SAID EXPECTATIONS THAT THE AIRLINE INDUSTRY WILL RETURN TO PROFITABILITY THIS YEAR ARE PREMATURE EVERY WAY I RUN THE NUMBERS I COME UP WITH A SIZABLE LOSS FOR THE INDUSTRY HE SAID THE MAIN PROBLEM MR DERCHIN SAID IS THAT AIRLINES ARE SADDLED WITH A BLOATED COST STRUCTURE AND A HEAVY DEBT LOAD THE AMOUNT OF REVENUE AND OPERATING PROFITS AIRLINES HAVE TO BRING IN ARE MUCH HIGHER THAN IN THE OLD DAYS WHEN THE BALANCE SHEETS WERE MUCH CLEANER MR DERCHIN SAID THAT'S WHY HE'S PROJECTING THE INDUSTRY WILL LOSE 600 MILLION TO 700 MILLION THIS YEAR WHILE SOME ON WALL STREET ARE EXPECTING ANYWHERE FROM A BREAKEVEN YEAR TO 500 MILLION TO 1 BILLION IN OPERATING PROFITS IN RESPONSE INVESTORS HAMMERED AIRLINE STOCKS UAL DROPPED 4 TO 126 7/8 AMR SANK 2 1/4 TO 62 3/4 AND DELTA FELL 1 5/8 TO 52 1/8 MR DERCHIN ISSUED SELL RECOMMENDATIONS ON THESE STOCKS YESTERDAY BUT ADVISED CLIENTS TO BUY USAIR AND KLM ROYAL DUTCH AIRLINES MAINLY BECAUSE THEY ARE CHEAP FOR INSTANCE HE NOTES USAIR IS SELLING AT A MERE 18 TIMES CASH FLOW WHILE UAL IS TRADING AT 41 TIMES CASH FLOW USAIR SLIPPED 1/4 TO 15 7/8 AND KLM ENDED UNCHANGED AT 14 3/8 INVESTORS FLOCKED TO SOME CABLE STOCKS SOUTHWESTERN BELL SAID IT AGREED TO BUY TWO CABLE TELEVISION SYSTEMS IN SUBURBAN WASHINGTON FOR A TOTAL OF 650 MILLION FROM CLOSELY HELD HAUSER COMMUNICATIONS SOUTHWESTERN BELL SLIPPED 3/4 TO 68 7/8 BUT CABLEVISION SYSTEMS RACED UP 2 1/8 TO 42 1/8 ON THE AMERICAN STOCK EXCHANGE AND COMCAST ADDED 3/8 TO 21 3/4 IN OVERTHECOUNTER TRADING RAYONIER TIMBERLANDS JUMPED 3 3/4 TO 37 THE COMPANY SAID IT INCREASED ITS QUARTERLY DIVIDEND TO 115 PER CLASS A UNIT FROM 90 CENTS A UNIT WHIRLPOOL CLIMBED CLIMBED 2 7/8 TO 51 5/8 THE HOUSEHOLD APPLIANCES CONCERN SURPASSED ANALYSTS' EXPECTATIONS WHEN IT REPORTED PROFIT IN THE FOURTH QUARTER SWELLED TO 62 MILLION OR 87 CENTS A SHARE FROM 40 MILLION OR 58 CENTS A SHARE A YEAR EARLIER EARNINGS FOR THE LATEST QUARTER INCLUDED PRETAX RESTRUCTURING CHARGES OF 18 MILLION WHILE PROFIT A YEAR AGO INCLUDED SIMILAR CHARGES OF 11 MILLION CONAGRA SLIPPED 1/2 TO 27 7/8 PHILIP B FLETCHER CONAGRA CHIEF EXECUTIVE SAID HE EXPECTS A MAJOR JUMP IN THE COMPANY'S HEALTHY CHOICE BRAND'S SALES IN THE CURRENT FISCAL YEAR THE COMMENTS WERE MADE AFTER THE WALL STREET JOURNAL REPORTED THE BRAND IS FLOUNDERING AFTER A HEALTHY START CARR REALTY WAS UNCHANGED AT 24 7/8 MAKING IT THE SECONDMOST ACTIVELY TRADED STOCK ON THE BIG BOARD THE WASHINGTON REAL ESTATE INVESTMENT TRUST SOLD 68 MILLION COMMON SHARES AT 22 EACH TO PUBLIC INVESTORS FOR THE FIRST TIME THE SHARES WERE PRICED BY UNDERWRITERS LED BY MERRILL LYNCH LATE MONDAY NEWS CORP ROSE 1 1/2 TO 39 7/8 THE COMPANY POSTED OPERATING PROFIT FOR THE SECOND QUARTER OF 91 CENTS A SHARE UP FROM 67 CENTS A YEAR EARLIER WASHINGTON NATIONAL LOST 1 7/8 TO 25 1/4 THE COMPANY SAID IT WILL TAKE A CHARGE OF 228 MILLION IN THE FIRST QUARTER PRIMARILY FOR AN ACCOUTING CHANGE TO FUND FUTURE HEALTH COSTS OF RETIREES STOCKS OF A NUMBER OF COMPANIES OPERATING UNDER CHAPTER 11 BANKRUPTCY LAWS SLID A HEARD ON THE STREET COLUMN NOTED THESE STOCKS ARE EXTREMELY OVERPRICED EAGLEPICHER INDUSTRIES WAS ONE OF THE LARGEST PERCENTAGE LOSERS ON THE BIG BOARD PLUNGING 3/8 TO 2 5/8 WANG LABORATORIES CLASS B SHARES TUMBLED 1/2 TO 5/8 ON THE AMERICAN STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 216 TO 415 THERE WERE 345 DECLINERS AND 230 ADVANCERS CATALINA MARKETING SLUMPED 2 3/4 TO 35 1/4 A ROBERTSON STEPHENS ANALYST SAID HE EXPECTS THE COMPANY'S PLAN TO INSTALL ELECTRONIC COUPONDELIVERING SYSTEMS IN SUPERMARKETS TO FALL SHORT OF EXPECTATIONS THE COMPANY HAD PLANNED TO HAVE THE SYSTEMS INSTALLED IN AS MANY AS 6000 STORES BY THE END OF ITS FISCAL FOURTH QUARTER NOW ANALYST BRIAN STACK EXPECTS ABOUT 5600 STORES WILL HAVE THE SYSTEMS IN PLACE BY THEN HE ADDED THAT HE DOESN'T EXPECT THE DELAY WILL HAVE ANY IMPACT ON CATALINA'S FINANCIAL PERFORMANCE 9302100023 930210 YOUR MONEY MATTERS INVESTMENT DARTBOARD INVESTMENT PROS TROUNCE DARTS IN STOCK PICKS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL THEY MADE IT LOOK EASY OVER THE PAST SIX MONTHS WHILE THE DOW JONES INDUSTRIAL AVERAGE WENT NOWHERE THREE OF THE FOUR STOCKS SELECTED BY THE INVESTMENT PROFESSIONALS IN THIS COLUMN'S STOCKPICKING CONTEST SOARED JAMES P KALIL A DELAWARE MONEY MANAGER GRABBED FIRST PLACE WITH A 296 GAIN IN LOTUS DEVELOPMENT CORP RIGHT BEHIND HIM WAS NEW YORK MONEY MANAGER DAVID P PEARSON UP 27 IN PITNEY BOWES INC DENVER MONEY MANAGER WILLIAM BERGER WHO PREVIOUSLY HAD WON ONE CONTEST AND FINISHED SECOND IN ANOTHER WAS A HAIR BEHIND THEM WITH A 243 GAIN IN LANNET DATA COMMUNICATIONS LTD THOSE THREE SOLID PERFORMANCES OFFSET A LOSS OF 185 IN WESTINGHOUSE ELECTRIC CORP BY SAN FRANCISCO MONEY MANAGER JUSTIN MAZZON OVERALL THE FOUR CONTESTANTS IN THE AUGUSTTOJANUARY CONTEST ACHIEVED AN AVERAGE GAIN OF 156 TROUNCING A RANDOMLY SELECTED DARTBOARD PORTFOLIO WHICH DROOPED 139 THE DOW JONES INDUSTRIALS SLIPPED 08 IN A SERIES OF 32 OVERLAPPING SIXMONTH CONTESTS THE PROS HAVE WON 18 TIMES WHILE STOCKS CHOSEN BY JOURNAL STAFFERS HEAVING DARTS AT THE STOCK LISTINGS HAVE WON 14 TIMES THE AVERAGE SIXMONTH GAIN 94 FOR THE PROS VS 49 FOR THE DARTS THE FIRSTPLACE AND SECONDPLACE FINISHERS MESSRS KALIL AND PEARSON RETURN FOR ANOTHER ROUND BOTH OF THEM PICK STOCKS THAT HAVE SHOWN POSITIVE MOMENTUM LATELY BUT THE TWO NEW CONTESTANTS MICHAEL METZ OF OPPENHEIMER & CO AND NED RILEY OF BANK OF BOSTON ARE CHOOSING STOCKS THAT HAVE BEEN DEEPLY OUT OF FAVOR MR KALIL DIRECTOR OF RESEARCH AT COMPUVAL INVESTMENTS INC IN WILMINGTON DEL RECOMMENDS ADAPTEC INC THE MILPITAS CALIF COMPANY MAKES INTEGRATED CIRCUITS THAT ENABLE A PERSONAL COMPUTER'S CENTRAL PROCESSING UNIT TO INTERACT WITH OTHER COMPONENTS SUCH AS A PRINTER OR MODEM WE EXPECT THE TECHNOLOGY INDUSTRY TO LEAD THE ECONOMIC RECOVERY SAYS MR KALIL HE LIKES ADAPTEC BECAUSE ITS SALES AND EARNINGS ARE RISING FAST SALES MORE THAN DOUBLED IN THE DECEMBER QUARTER AND EARNINGS HIT 50 CENTS A SHARE UP FROM 18 CENTS A YEAR EARLIER FAST GROWTH OR NOT MR KALIL DOESN'T WANT TO PAY TOO MUCH FOR A STOCK BUT HE SAYS ADAPTEC WHICH WAS QUOTED AT 2650 YESTERDAY IN OVERTHECOUNTER TRADING IS REASONABLY PRICED FOR EXAMPLE HE SAYS IT IS SELLING FOR ONLY ABOUT 121 TIMES THE REPLACEMENT VALUE OF THE COMPANY'S ASSETS MOST COMPANIES HE SAYS SELL FOR ABOUT TWICE THE REPLACEMENT BOOK VALUE MR PEARSON A MANAGING DIRECTOR AT CARRET & CO SELECTS PARAMOUNT COMMUNICATIONS INC THE NEW YORK COMPANY OWNS PARAMOUNT PICTURES MADISON SQUARE GARDEN CORP SIX TELEVISION STATIONS HALF OF USA CABLE NETWORK AND PUBLISHERS SIMON & SCHUSTER AND PRENTICEHALL WHAT EXCITES MR PEARSON IS THE FILMED ENTERTAINMENT BUSINESS THOUGH THE STOCK HAS PERKED UP LATELY IT CLOSED AT 47625 YESTERDAY ON THE NEW YORK STOCK EXCHANGE UP FROM 43 A MONTH AGO IT IS STILL WELL BELOW ITS 1989 HIGH OF 66 MR PEARSON NOTES BUT IT ONLY TAKES A COUPLE OF BIG WINNERS TO MAKE A GOOD YEAR FOR A MOVIE STUDIO HE SAYS AND HE THINKS PARAMOUNT MIGHT HAVE TWO HITS THIS YEAR SLIVER STARRING SHARON STONE AND THE FIRM WITH TOM CRUISE IT'S KIND OF AN ANYTHINGCANHAPPEN STOCK HE SAYS AS A KICKER HE THINKS THERE'S A FAIR CHANCE PARAMOUNT WILL MAKE A BIG ACQUISITION OR BE TAKEN OVER MICHAEL METZ CHIEF INVESTMENT STRATEGIST FOR OPPENHEIMER & CO IN NEW YORK PLUMPS FOR A STOCK ALMOST NO ONE LIKES THESE DAYS HOMESTAKE MINING CO SAN FRANCISCO WITH INFLATION SUBDUED GOLD AND GOLD STOCKS HAVE BEEN UNPOPULAR BUT MR METZ SAYS I THINK THE BEAR MARKET IN GOLD IS ABOUT TO END IMMINENTLY TO BEGIN WITH HE SAYS DEMAND FOR GOLD IN JEWELRY HAS BEEN RISING STEADILY AND EXCEEDS PRODUCTION BY ABOUT 20 THE DIFFERENCE HAS BEEN MADE UP BY INVESTORS SELLING GOLD BUT THAT TREND MAY SOON REVERSE HE SAYS CURRENCY GYRATIONS AND POLITICAL INSTABILITY IN THE FORMER SOVIET UNION MAY GIVE GOLD PRICES A NUDGE UPWARD BUT MORE IMPORTANT HE THINKS SHORTTERM INTEREST RATES WILL FALL IN EUROPE THIS YEAR THAT WOULD MAKE GOLD RELATIVELY MORE ATTRACTIVE BECAUSE EUROPEANS WOULDN'T HAVE TO GIVE UP HIGH INTEREST RATES IN ORDER TO HOLD GOLD ONCE GOLD STARTS TO MOVE IT WILL MOVE WITH EXTRAORDINARY INTENSITY MR METZ SAYS GOLD IS NEAR 330 AN OUNCE HE THINKS IT WILL GO ABOVE 400 THIS YEAR IF SO HE FIGURES HOMESTAKE TRADING AT 11875 A SHARE YESTERDAY ON THE BIG BOARD COULD RISE TO 20 WITHIN A YEAR NED RILEY CHIEF INVESTMENT OFFICER FOR BANK OF BOSTON'S PRIVATE BANKING GROUP FIGURES THAT THE JAPANESE STOCK MARKET DOWN ABOUT 45 FROM ITS HIGH IS BEGINNING TO LOOK INTERESTING ONCE JAPAN STRUGGLES OUT OF ITS RECESSION HE BELIEVES JAPANESE CORPORATIONS WILL BENEFIT FROM THE HEAVY INVESTMENTS THEY HAVE MADE IN CAPITAL SPENDING AND RESEARCH AND DEVELOPMENT MR RILEY'S FAVORITE JAPANESE STOCK AT THE MOMENT IS PIONEER ELECTRONIC CORP BASED IN TOKYO SHARES IN PIONEER TRADE IN THE US IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS OR ADRS THE ADRS SELL FOR ABOUT 2025 APIECE MR RILEY WOULD PAY AS MUCH AS 22 HOPING FOR A PRICE OF 25 TO 28 WITHIN A YEAR TO HIM PIONEER'S BIG APPEAL IS ITS MASTERY OF LASER DISK TECHNOLOGY FEW HOMES HAVE A LASER DISK STEREO YET HE SAYS AND FEWER STILL HAVE LASER DISK PLAYERS FOR VIDEO AND COMPUTER GRAPHICS BUT HE THINKS ALL THAT IS COMING AND THAT PIONEER WILL BENEFIT FOR THE COMING SIX MONTHS THE PROFESSIONALS' PICKS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF CARENETWORK INC LAFAYETTE AMERICAN BANCORP NPM HEALTHCARE PRODUCTS INC AND STAODYN INC 9302100022 930210 HEARD ON THE STREET WHY HOT NEW STOCKS GET BOOSTER SHOTS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL A FUNNY THING USUALLY HAPPENS ABOUT A MONTH AFTER A HOT NEW STOCK OFFERING SUCH AS SNAPPLE OR FRESH CHOICE COMES OUT ALMOST LIKE CLOCKWORK A PROMINENT WALL STREET BROKERAGE FIRM WILL ISSUE A BUY RECOMMENDATION IN RESPONSE AN ALREADY HIGHFLYING STOCK FREQUENTLY RISES EVEN MORE DURING THE FOLLOWING FEW DAYS OR WEEKS TRADERS HAVE A NAME FOR THIS IT'S THE POSTOFFERING BOOSTER SHOT WHAT MANY INVESTORS DON'T REALIZE IS THAT THESE POSTOFFERING BUY RECOMMENDATIONS ARE COMING FROM THE UNDERWRITERS THE VERY WALL STREET FIRMS THAT SOLD THE STOCK TO THE PUBLIC IN THE FIRST PLACE A BUY RECOMMENDATION HAS ALMOST BECOME LIKE A MANDATORY SERVICE THAT'S PART OF THE IPO INITIAL PUBLIC OFFERING SAYS KEITH GOGGIN MANAGING EDITOR OF IPO REPORTER A NEWSLETTER UNDERWRITERS WOULD PREFER HAVING NO RESEARCH REPORT WHATSOEVER THAN COME OUT WITH A SELL MR GOGGIN ADDS WALL STREET BROKERAGE FIRMS THAT UNDERWRITE A STOCK BUY THE SHARES FROM THE ISSUING CORPORATION AND IMMEDIATELY RESELL THEM TO INVESTORS AREN'T ALLOWED TO ISSUE BUY OR SELL RECOMMENDATIONS FOR 25 DAYS AFTER THE ISSUE DATE THIS IS THE SOCALLED QUIET PERIOD MANDATED BY THE SECURITIES AND EXCHANGE COMMISSION BUT AFTER THIS QUIET PERIOD RUNS OUT A POSITIVE RESEARCH REPORT IS ALMOST SURE TO APPEAR BOOSTING THE STOCK BROKERS AND THE FINANCIAL PRESS DON'T ALWAYS POINT OUT TO INVESTORS THAT THE POSITIVE REPORT COMES FROM THE UNDERWRITER'S ANALYST TAKE HIGHFLYING SNAPPLE BEVERAGE WHICH HAS SOARED 80 FROM ITS MIDDECEMBER OFFERING PRICE OF 20 HELPING TO KEEP THE SNAP IN SNAPPLE WAS A BUY ON THE SOFTDRINK MAKER ISSUED IN LATE JANUARY BY UNDERWRITER MERRILL LYNCH RECENT NEWS STORIES ON SNAPPLE'S HIGH PRICE HAVE INCLUDED POSITIVE REMARKS BY MERRILL ANALYST ALLAN KAPLAN WHO IS A RESPECTED ANALYST BUT HARDLY A DISINTERESTED OBSERVER A MERRILL SPOKESMAN SAYS SUCH POSTOFFERING BUY RECOMMENDATIONS ARE A REFLECTION OF OUR ANALYST'S INDEPENDENT THINKING FOLLOWING EXPIRATION OF THE QUIET PERIOD OR CONSIDER FRESH CHOICE ANOTHER HOT STOCK THE SANTA CLARA CALIF RESTAURANT CHAIN HIT THE MARKET AT 13 A SHARE IN EARLY DECEMBER UNDERWRITTEN BY ALEX BROWN & SONS RESTAURANT STOCKS STRATOSPHERIC LONE STAR STEAKHOUSE & SALOON AND OTHERS HAVE BEEN SIZZLING SOMETHING THAT IN THE PAST HAS BEEN A SIGN OF AN OVERHEATED IPO MARKET INDEED FRESH CHOICE HAD SOARED TO 22 BY THE TIME ITS QUIET PERIOD EXPIRED IN EARLY JANUARY ALEX BROWN'S CAMILLE HUMPHRIES THEN PUT OUT AN INITIAL BUY REPORT BOOSTING THE STOCK EVEN MORE DURING THE FOLLOWING FOUR WEEKS AT LEAST MS HUMPHRIES WASN'T AFRAID TO CHANGE HER MIND AT SOME POINT BEFORE THE STOCK MARKET OPENED ON MONDAY SHE TRIMMED HER RECOMMENDATION TO A HOLD THE STOCK HAS FALLEN 3 POINTS TO 28 SINCE THEN A RESULT OF AN UNDERWRITER'S BENT TOWARD BOOSTERISM IS THAT INVESTORS ARE OFTEN SUCKED INTO HOT NEW IPOS AT THE WORST TIME WHEN THE SMART MONEY IS ALREADY GETTING OUT SOPHISTICATED INVESTORS HAVE LEARNED TO TAKE POSITIVE REPORTS ISSUED BY THE UNDERWRITER WITH A LARGE DOSE OF SKEPTICISM ON THE OTHER HAND OCCASIONALLY A HOT NEW STOCK GETS TOO PRICEY EVEN FOR AN UNDERWRITER'S TASTE WHEN AN UNDERWRITER CHANGES THE RATING ON A STOCK TO WHICH IT HAS ACTED AS MIDWIFE TO A HOLD FROM BUY VETERAN INVESTORS TEND TO TAKE THAT STEP SERIOUSLY ANALYSTS SAY THEY TRY TO PUT INVESTORS' NEEDS FIRST IN THESE CASES BUT THE ANALYSTS ARE OFTEN DIRECTLY INVOLVED IN BRINGING OUT THE IPOS TO BEGIN WITH FOR THEM TO PAN A STOCK THEIR COMPANY HAS JUST SHEPHERDED TO MARKET WOULD MEAN RISKING THE WRATH OF THEIR INVESTMENTBANKING DEPARTMENT AND THE ISSUING COMPANY BUT IS IT RESPONSIBLE TO RECOMMEND STOCKS THAT HAVE ALREADY DOUBLED IN PRICE IN A MONTH IN AN OVERHEATED IPO MARKET LIKE THIS CONCEDES ONE WALL STREET ANALYST IF THE IPO PRICE IS AT 15 AND THE STOCK MOVES TO 30 BY THE END OF THE QUIET PERIOD YOU RETHINK WHETHER YOU WANT TO GO OUT WITH A BUY RECOMMENDATION DESPITE THIS ANALYST'S QUALMS ON THE SUBJECT HE CAN'T REMEMBER A TIME WHEN HE DIDN'T MAKE AN INITIAL BUY RECOMMENDATION DECIDING WHAT TO DO ON AN INITIAL RECOMMENDATION ON A STOCK UNDERWRITTEN BY ALEX BROWN IS A TOUGH CALL SAYS MS HUMPHRIES SHE SAYS SHE WENT TO A HOLD ON FRESH CHOICE SIMPLY BECAUSE THE STOCK HAD RISEN SO MUCH TO A PRICETOEARNINGS RATIO BASED ON HER 1993 EARNINGS ESTIMATE OF 52 COMPARED WITH 37 AT THE TIME OF HER BUY RECOMMENDATION IF WE TAKE A COMPANY PUBLIC WE HAVE A HIGH DEGREE OF CONFIDENCE IN ITS PROSPECTS MS HUMPHRIES ADDS FIRST BOSTON BROUGHT OUT INSURER FIRST COLONY IN DECEMBER THE STOCK HAD ALREADY JUMPED 18 BY THE TIME FIRST BOSTON ANALYST CHARLES GATES ISSUED HIS INITIAL REPORT MR GATES SAID BUY AND THE STOCK HAS RISEN ANOTHER 11 REACHED AT FIRST BOSTON MR GATES SAYS HE'D TALK LATER BUT HE HADN'T BY PRESS TIME RICK SHERLUND GOLDMAN SACHS' SOFTWARE ANALYST RECENTLY WAS CALLED UPON TO MAKE HIS INITIAL REPORT ON PEOPLESOFT A GOLDMAN UNDERWRITING GOLDMAN HAD TAKEN THE COMPANY PUBLIC IN NOVEMBER AT 17 A SHARE THE STOCK HAD ALMOST DOUBLED IN PRICE TO 30 AND WAS TRADING AT A PRICEY 50 TIMES EARNINGS WHEN THE QUIET PERIOD EXPIRED AND MR SHERLUND STEPPED TO THE PLATE HE BUNTED HE ISSUED A BUY RECOMMENDATION PREDICTING THE STOCK WOULD MODERATELY OUTPERFORM BUT HE DIDN'T GIVE THE STOCK GOLDMAN'S STRONGEST BUY RATING THAT LUKEWARM RECOMMENDATION MAY BE WHY THE STOCK SLIPPED A BIT AFTER THE RECOMMENDATION CAME OUT THOUGH IT WAS SUFFICIENT TO HELP THE STOCK CLIMB STEADILY SINCE THE FIRST OBLIGATION IS TO THE INVESTING CLIENTS MR SHERLUND SAYS I'M NOT UNDER ANY OBLIGATION TO RECOMMEND THE STOCK BECAUSE WE'VE DONE AN UNDERWRITING FOR THEM IN A RELATIVELY FEW CASES THE INITIAL REPORT FROM THE UNDERWRITER IS A NEGATIVE ONE THAT IS EVERY UNDERWRITER'S NIGHTMARE BECAUSE INVESTORS MAY WONDER WHY THE UNDERWRITER SOLD AN OFFERING ONE MONTH AND SUDDENLY BECAME BEARISH ON IT THE NEXT THAT IS WHAT HAPPENED WITH NETWORTH AN IRVING TEXAS NETWORKCOMMUNICATIONS SOFTWARE COMPANY UNDERWRITTEN BY ROBERTSON STEPHENS & CO THE STOCK CAME OUT AT 16 A SHARE IN NOVEMBER AND HAD DOUBLED BEFORE ROBERTSON STEPHENS CUT ITS REVENUE FORECAST THE STOCK HAS BEEN COLD SINCE INVESTORS WILL HEAR NO APOLOGIES FROM MICHAEL STARK THE RESEARCH CHIEF AT ROBERTSON STEPHENS THE MESSAGE IS WE EAT REALITY COOKIES SAYS MR STARK WE REALLY LIKE NETWORTH AND WE WOULDN'T HAVE DONE THE OFFERING OTHERWISE BUT WE JUST CAN'T TELL PEOPLE TO COME INTO THE STOCK ON AN AGGRESSIVE BASIS WHEN IT'S TRADING ON THE VALUATION IT IS NOW 9302100021 930210 CREDIT MARKETS BOND PRICES EASE SLIGHTLY AS TREASURY RECEIVES MODERATE BUYER DEMAND AT THREEYEAR SALE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES DROPPED SLIGHTLY YESTERDAY AS THE TREASURY SUCCESSFULLY COMPLETED THE FIRST PART OF ITS MASSIVE QUARTERLY REFUNDING THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/16 POINT LATE YESTERDAY TO 105 3/32 A DECLINE OF 625 CENTS FOR A BOND WITH A 1000 FACE AMOUNT THE YIELD CLIMBED TO 720 FROM 719 ON MONDAY THE 10YEAR NOTE DROPPED MORE THAN 1/8 POINT TO 99 26/32 TO YIELD 638 UP FROM 636 TREASURY PRICES WILL OFTEN DROP DURING QUARTERLY REFUNDINGS AS GOVERNMENT BOND DEALERS SELL SOME OF THEIR INVENTORIES OF OLD NOTES AND BONDS TO MAKE ROOM FOR THE NEW SECURITIES TO BE AUCTIONED THIS WEEK THE GOVERNMENT IS SCHEDULED TO SELL 355 BILLION OF NEW THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS YESTERDAY THE TREASURY SOLD 1565 BILLION OF THREEYEAR NOTES TO INVESTORS AT AN AVERAGE YIELD OF 473 DOWN FROM 517 AT THE NOVEMBER REFUNDING INVESTOR DEMAND WHILE NOT EXTREMELY STRONG WAS NOT WEAK ENOUGH TO WARRANT GREAT CONCERN SAID TRADERS THERE WAS A LITTLE DISAPPOINTMENT IN THE MARKET SAID GREG ERARDI HEAD OF GOVERNMENT BOND TRADING AT SALOMON BROTHERS INC EVEN THOUGH THE AUCTION WENT REASONABLY WELL AFTER FINAL BIDS WERE ACCEPTED FROM PRIMARY DEALERS AT 1 PM EST AND BEFORE THE RESULTS OF THE AUCTION WERE RELEASED ONE HOUR LATER SAID MR ERARDI THERE WERE SOME RUMORS GOING AROUND THAT THE AUCTION WAS GOING TO GO EXTREMELY WELL AS THE DEALERS WAITED FOR THE RESULTS TO BE RELEASED INCREASED INVESTOR DEMAND PUSHED THE YIELD ON THE NEW THREEYEAR NOTE AS LOW AS 469 IN WHENISSUED TRADING THERE WAS SOME DISAPPOINTMENT WHEN THE GOVERNMENT REPORTED THAT THE AVERAGE ACCEPTED YIELD ENDED UP AT 473 BUT NOT ENOUGH TO PUSH IT ANY HIGHER BY DAY'S END A SIGN THAT DEMAND HAD REMAINED STRONG IT WAS A REASONABLY GOOD AUCTION SAID MR ERARDI BUT I THINK THERE WERE SOME EXPECTATIONS FOR AN EXCEPTIONAL ONE ACCORDING TO JAMES KENNY MANAGER OF GOVERNMENT TRADING AT PRUDENTIAL SECURITIES INC IT WASN'T A BIG SURPRISE IN THE END THE SURPRISE WAS WHAT HAPPENED BETWEEN 1 PM AND 2 PM WHEN THE WHENISSUED YIELD RAN DOWN TO 469 BUT DEMAND FOR THE NEW THREEYEAR NOTE WAS DECENT THE BIDTOCOVER RATIO WHICH IS A RATIO OF THE NUMBER OF BIDS RECEIVED TO THE NUMBER ACCEPTED WAS 275TO1 SLIGHTLY HIGHER THAN THE 271TO1 AVERAGE OVER THE PREVIOUS 12 AUCTIONS A SIGN OF SLIGHTLY STRONGER DEMAND THE TAIL OR DIFFERENCE IN TENTHS OF A PERCENTAGE POINT BETWEEN THE AVERAGE ACCEPTED YIELD AND THE HIGHEST ACCEPTED YIELD WAS ZERO ANOTHER SIGN OF HEALTHY DEMAND THE TREASURY ACCEPTED 876 MILLION OF NONCOMPETITIVE BIDS FROM INDIVIDUAL INVESTORS UP FROM 530 MILLION AT THE NOVEMBER AUCTION THERE WAS LITTLE IN THE WAY OF NEW ECONOMIC REPORTS TO CATCH THE ATTENTION OF THE BOND MARKETS A REPORT SHOWING AN INCREASE IN RETAIL SALES FOR THE FIRST WEEK OF FEBRUARY DID HOWEVER WEIGH DOWN PRICES SLIGHTLY IN THE AFTERNOON THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED THAT CHAIN AND DEPARTMENT STORE SALES FOR THE FIRST WEEK OF THE MONTH ROSE 37 FROM THE SAME PERIOD IN JANUARY DEALERS SAID THERE IS LITTLE REASON TO BELIEVE THAT THE MARKET WILL HAVE ANY PROBLEMS IN DIGESTING THE REST OF THE NEW TREASURY SECURITIES SCHEDULED TO BE AUCTIONED TODAY AND TOMORROW THE TREASURY IS SCHEDULED TO AUCTION 1075 BILLION IN 10YEAR NOTES TODAY AND 925 BILLION OF 30YEAR BONDS TOMORROW THEY DON'T PRESENT AN ENORMOUS PROBLEM SAID MR KENNY OF PRUDENTIAL WHO SAYS THAT THERE IS A CHANCE THAT THE 10YEAR NOTE COULD BE AUCTIONED AT A YIELD NEAR 6375 WITH THE 30YEAR BOND AUCTIONED AT 720 IN WHENISSUED TRADING LATE YESTERDAY THE 10YEAR NOTE WAS YIELDING 634 UP FROM 632 ON MONDAY AND THE 30YEAR BOND WAS YIELDING 715 UNCHANGED FROM MONDAY I DON'T THINK THE MARKET IS IN REAL BAD SHAPE SAID MR KENNY IT'S TAKING A LITTLE BIT OF A BREATHER THE NEXT TWO AUCTIONS COULD BE VERY INTERESTING SAID MR ERARDI OF SALOMON I WOULD HAVE THOUGHT THAT THE THREEYEAR AUCTION WOULD SET THE TONE FOR THE REFUNDING HE SAID THE FACT THAT THE THREEYEAR NOTE AUCTION WASN'T GREETED WITH VERY STRONG DEMAND MEANS THAT THE NEXT TWO PARTS OF THE REFUNDING COULD BE A LITTLE BIT HARDER THAN NORMAL HE SAID BUT I'M CERTAINLY NOT NEGATIVE ABOUT THE NEXT AUCTIONS ADDED MR ERARDI WHO POINTED OUT THAT THERE IS A DEARTH OF ECONOMIC AND POLITICAL NEWS THIS WEEK THAT COULD NEGATIVELY AFFECT BOND PRICES HERE ARE THE RESULTS OF THE TREASURY'S AUCTION OF THREEYEAR NOTES RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE NOTES ARE DATED FEB 16 1993 AND MATURE FEB 15 1996 JUNK BOND INVESTORS SNAPPED UP TWO NEW OFFERINGS YESTERDAY AS HIGHYIELD OFFERINGS DOMINATED ACTIVITY IN THE PRIMARY MARKET CABLETV COMPANY CABLEVISION SYSTEMS CORP SOLD 200 MILLION OF 20YEAR SENIOR SUBORDINATED DEBENTURES AND CATALOG AND SHOWROOM MERCHANDISER SERVICE MERCHANDISE CO SOLD 300 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE IN 2004 BOTH DEALS WERE USED TO REFINANCE DEBT AND WERE PRICED WITH YIELDS UNDER 10 HIGHYIELD INVESTORS WELCOMED THE DEALS PARTICULARLY THOSE INVESTORS WHO HAVE ALLOWED LARGE CASH POSITIONS TO BUILD FROM LATE DECEMBER SEVERAL PORTFOLIO MANAGERS NOTED THAT THE PACE OF NEW JUNK DEALS SO FAR THIS YEAR IS SLOWER THAN AT THE SAME TIME LAST YEAR CENTRAL FIDELITY BANKS INC PRICED THE LONE CORPORATE INVESTMENTGRADE ISSUE MEANWHILE SECONDARY TRADING WAS GENERALLY LIGHT AS INVESTORS AND DEALERS WATCHED THE TREASURY REFUNDING FROM THE SIDELINES MOST HIGHGRADE BONDS ENDED 1/8 POINT LOWER WHILE YIELD SPREADS BETWEEN CORPORATE BONDS AND COMPARABLE TREASURYS WERE UNCHANGED TRADERS SAID JUNK BOND PRICES WERE LITTLE CHANGED WITH FEW ISSUES CHANGING HANDS AS BUYERS FOCUSED ON THE CALENDAR OF NEW SUPPLY CABLEVISION SYSTEMS SOLD ITS 20YEAR SUBORDINATED DEBENTURES WITH A 9875 COUPON AT A PRICE OF 99375 TO YIELD 9947 THE SIZE OF THE OFFERING WAS INCREASED TO 200 MILLION FROM A PLANNED SIZE OF 100 MILLION THE NOTES WHICH ARE NONCALLABLE FOR 10 YEARS WERE PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED SINGLEB BY STANDARD & POOR'S CORP AND SINGLEB2 BY MOODY'S INVESTORS SERVICE INC PRICES OF MUNICIPAL BONDS ENDED NARROWLY MIXED ALTHOUGH BUYING FADED AFTER THE RISE IN RECENT SESSIONS SENTIMENT ABOUT THE MARKET REMAINS BULLISH LARGELY BECAUSE OF PRESIDENT CLINTON'S PLAN TO RAISE THE TOP FEDERAL INCOME TAX RATE FROM 31 TO POSSIBLY MORE THAN THE 36 THAT HE PROPOSED DURING HIS ELECTION CAMPAIGN AMONG THE FEW ISSUES THAT STRENGTHENED YESTERDAY WERE THE SNOHOMISH COUNTY WASH PUBLIC UTILITY DISTRICT NO 1'S 6 GENERATION SYSTEM REVENUE BONDS OF 2018 THEY CLOSED 1/8 POINT HIGHER AT 98 1/2 TO YIELD 610 IN PRIMARY DEALINGS LOUISIANA'S 6023 MILLION OF GENERAL OBLIGATION BONDS WERE BROUGHT TO THE MARKET BY A MERRILL LYNCH & CO GROUP THE OFFERING INCLUDES 4773 MILLION OF SERIES 1993A REFUNDING BONDS AND 125 MILLION SERIES 1993B NEWMONEY BONDS THE NONCALLABLE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY LOWER IN SECONDARY TRADING OF 75 ISSUES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES SLIPPED 1/32 TO 101 31/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES DECLINED 3/32 TO 101 26/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES LOST 3/32 TO 101 19/32 THE ONLY NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT ANNOUNCED WAS A 600 MILLION FREDDIE MAC DEAL THE ISSUE FREDDIE MAC GOLD 1480 IS BACKED BY THE AGENCY'S GOLD 75 SECURITIES THAT BROUGHT THE WEEK'S ANNOUNCED AGENCY REMIC ISSUANCE TO JUST 800 MILLION FANNIE MAE MEANWHILE REPORTED THAT ITS TOTAL MORTGAGEBACKED PASSTHROUGH SECURITIES ISSUANCE DROPPED TO 169 BILLION IN JANUARY FROM 192 BILLION THE PRIOR MONTH AND A RECORD 196 BILLION IN NOVEMBER WE KNEW WE WEREN'T GOING TO CONTINUE TO ISSUE MORTGAGEBACKED SECURITIES AT A RECORD LEVEL BECAUSE REFINANCING ACTIVITY DECELERATED SAID PAUL PAQUIN SENIOR VICE PRESIDENT FOR INVESTOR RELATIONS AT FANNIE MAE JANUARY'S PACE WAS NONETHELESS CONSIDERABLE AND ISSUANCE SHOULD ACCELERATE AGAIN BY SPRING IN RESPONSE TO THE REFINANCING PICKUP NOW UNDER WAY HE ADDED TERENCE DONNELLY AND THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9302100020 930210 WHAT'S NEWS BUSINESS AND FINANCE THE BIG THREE US AUTO MAKERS SAID THEY WON'T CHARGE THEIR JAPANESE RIVALS WITH SELLING CARS IN THE US AT UNFAIRLY LOW PRICES THE ABOUTFACE PROMPTED BY GENERAL MOTORS REFLECTS A CONCERN THAT SUCH A STEP COULD PAINT DETROIT AS ANTICONSUMER THE US COMPANIES ALSO WANT TO GIVE CLINTON TIME TO DEVELOP A TRADE POLICY THE DOLLAR TUMBLED 2 AGAINST THE YEN ON SPECULATION THAT TRADERELATED POLITICAL PRESSURE WOULD FORCE JAPAN TO ACT TO STRENGTHEN ITS CURRENCY AS A WAY TO REDUCE THE NATION'S TRADE SURPLUS TOKYO STOCKS TUMBLED 15 TUESDAY THE WHITE HOUSE IS CONSIDERING MAKING ITS PROPOSED INVESTMENT TAX CREDIT TEMPORARY OR LIMITING IT TO CERTAIN COMPANIES PERHAPS SMALL ONES SOME LEGISLATIVE AIDES EXPECT A CREDIT THAT WOULD EXPIRE AT THE END OF 1994 THE AFLCIO IS WEIGHING A PROPOSAL CALLING FOR A BROADBASED CONSUMPTION TAX ON GOODS AND SERVICES TO HELP PAY FOR A HEALTH CARE PLAN SOUTHWESTERN BELL AGREED TO BUY TWO CABLE TV SYSTEMS FROM HAUSER COMMUNICATIONS FOR 650 MILLION THE DEAL COULD TOUCH OFF A WAVE OF CABLE INVESTMENTS BY TELEPHONE COMPANIES GENERAL MOTORS WAS BARRED BY A STATE JUDGE IN MICHIGAN FROM CLOSING A FACTORY THERE BECAUSE THE COMPANY ACCEPTED TAX BREAKS FROM THE MUNICIPALITY WHERE THE PLANT IS LOCATED STOCKS SLID AS INVESTORS TOOK PROFITS FOR A SECOND DAY AFTER LAST WEEK'S RALLY WHILE BOND PRICES EDGED LOWER THE DOW JONES INDUSTRIALS FELL 2296 POINTS TO 341458 IN HEAVY TRADING NASDAQ STOCK PRICES HAVE LOST 23 DURING THE PAST THREE TRADING DAYS NBC DISAVOWED A STAGED CRASH OF A GENERAL MOTORS TRUCK ON ITS DATELINE NBC TELEVISION SHOW AND SETTLED A LAWSUIT FILED BY GM OVER THE EPISODE NEXT COMPUTER SAID IT WILL STOP SELLING COMPUTERS AND WILL CONCENTRATE ON SELLING ITS OPERATING SOFTWARE PUTTING THE COMPANY HEADED BY STEVEN JOBS IN DIRECT COMPETITION WITH MICROSOFT DELL COMPUTER SLASHED ITS PRICES AN AVERAGE OF 87 AMID SIGNS OF WEAKENING DEMAND INDICATING THE PERSONALCOMPUTER PRICE WAR ISN'T OVER SEARS POSTED A 18 BILLION FOURTHQUARTER LOSS AS BIG CHARGES MORE THAN OFFSET A 19 RISE IN OPERATING PROFIT THE RETAILER CUT ITS DIVIDEND 20 FIDELITY INVESTMENTS IS CLOSING THE NATION'S LARGEST SMALLCOMPANY STOCK FUND TO NEW INVESTORS AFTER THE FUND'S SIZE TRIPLED IN THE PAST SIX MONTHS HOME PRICES SURGED IN THE FOURTH QUARTER IN PARTS OF THE NORTHWEST AND THE SOUTHWEST BUT CONTINUED TO FALL IN NEW ENGLAND AND CALIFORNIA QUEBEC SUPERMARKET OWNER UNIVA RECEIVED A 127 BILLION BUYOUT BID FROM A GROUP INCLUDING BLACKSTONE CAPITAL AND UNIVA'S BIGGEST HOLDER GOODYEAR TIRE REPORTED AN 875 MILLION PROFIT AND A 5 INCREASE IN SALES FOR THE FOURTH QUARTER THE TIRE MAKER PROPOSED A 2FOR1 STOCK SPLIT AND BOOSTED ITS DIVIDEND 20 AUSTRALIAN PRIME MINISTER PAUL KEATING PROPOSED BIG TAX BREAKS FOR BUSINESS IN AN EFFORT TO STIMULATE THE NATION'S SLUGGISH ECONOMY AUSTRALIAN STOCKS RALLIED ON THE ANNOUNCEMENT ERICSSON'S PRETAX PROFIT SURGED TENFOLD IN THE FOURTH QUARTER THE SWEDISH TELECOMMUNICATIONS COMPANY'S STOCK SOARED 94 ON THE NEWS PLATINUM AND PALLADIUM PRICES SOARED ON SIGNS OF STRONG JAPANESE DEMAND AND TIGHT SUPPLIES FROM RUSSIA BONDS LEHMAN BROTHERS TREASURY INDEX 485430 OFF 289 COMMODITIES OIL 2005 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12377 UP 092 SPOT INDEX 12260 UP 060 DOLLAR 12123 YEN OFF 252 16543 MARKS OFF 0002 9302100019 930210 MEDIA NBC IN SETTLEMENT WITH GM DISAVOWS ITS REENACTMENT IN TRUCKCRASH STORY BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC NEWS ISSUED A BROADBASED RETRACTION OF ITS STAGED CRASH OF A GENERAL MOTORS CORP PICKUP TRUCK IN SETTLING A LAWSUIT FILED BY GM THE RETRACTION READ ALOUD LAST NIGHT ON DATELINE NBC SAID THAT IT WAS A BAD IDEA FROM START TO FINISH FOR THE NETWORK TO BROADCAST WHAT IT CALLED AN UNSCIENTIFIC REENACTMENT OF A CRASH DETAILS OF THE SETTLEMENT WHICH WAS REACHED JUST BEFORE THE SHOW AIRED WEREN'T AVAILABLE THE RETRACTION AND SETTLEMENT BRINGS TO A CLOSE AN EPISODE THAT RAISED A FUROR ABOUT NBC'S ETHICS IN THE RECREATION OF A TRUCK CRASH ADDING A VOLATILE ELEMENT TO THE DISPUTE WAS THAT IT CAME AGAINST THE BACKDROP OF OF A JURY VERDICT OF 1052 MILLION AGAINST GM IN A SUIT INVOLVING THE TRUCK NBC NEWS'S ADMISSION THAT IT USED MODELROCKET ENGINES IN A DEMONSTRATION CRASH FOR A STORY ON THE NOV 17 EDITION OF DATELINE NBC CAME AT A TIME OF INCREASING COMPETITION FOR A HOT STORY AMONG AN EVEREXPANDING NUMBER OF PRIMETIME NETWORK NEWS MAGAZINE SHOWS THE MAJOR NETWORK NEWS DIVISIONS HAVE INCREASINGLY EMBRACED MELODRAMATIC TECHNIQUES THAT WERE FIRST USED BY TABLOID TELEVISION SHOWS IN THE MID1980S TV JOURNALISTS' NORMAL TENDENCY HAD BEEN TO CLOSE RANKS WHENEVER ONE OF THEIR OWN CAME UNDER CRITICISM BUT THAT DIDN'T APPEAR TO BE HAPPEN THIS TIME A TV JOURNALIST WOULD HAVE BEEN FIRED FOR PULLING SUCH A STUNT IN YEARS PAST SAID MARVIN KALB A FORMER NETWORK NEWS CORRESPONDENT WHO IS NOW DIRECTOR OF HARVARD UNIVERSITY'S SHORENSTEIN BARONE CENTER ON PRESS POLITICS AND PUBLIC POLICY BUT SO RADICALLY HAVE JOURNALISTIC NEWS STANDARDS CHANGED OVER THE LAST 20 TO 30 YEARS THAT A NETWORK CAN NOW DO THIS KIND OF SIMULATION WITHOUT TELLING THE AUDIENCE THAT IT IS A SIMULATION AND THEN ARGUE THAT IT PURSUED A PROPER JOURNALISTIC COURSE I FIND IT RATHER ASTOUNDING NBC SAID IT USED THE TOY ROCKETS TO SIMULATE THE SPARKS THAT WOULD OCCUR IN AN ACTUAL CRASH IT AIRED THE FOOTAGE OF THE GM TRUCK CATCHING FIRE BUT DIDN'T BOTHER TO TELL VIEWERS THAT MODEL ROCKET ENGINES TAPED UNDER THE TRUCK HAD BEEN SET OFF THAT'S BECAUSE THE NETWORK SAID A SPARK OCCURRED FROM A LEGITIMATE SOURCE A BROKEN HEADLIGHT THAT BEING THE CASE IF THEY HAD A SMOKING GUN THEN THEY SHOT THEMSELVES IN THE FOOT WITH IT SAID DON HEWITT EXECUTIVE PRODUCER OF CBS'S 60 MINUTES THERE WAS NO REASON TO DO THAT THEY HAD A PRETTY GOOD STORY UP TO THAT POINT YOU CAN'T EVER PLAY FAST AND LOOSE WITH THE PEOPLE WHO WATCH YOU OR YOU LOSE THEM NBC NEWS'S WRITTEN POLICIES CLEARLY PROHIBITED STAGING WHICH IT PARTLY DEFINES AS IF IT ISN'T HAPPENING YOU CANNOT MAKE IT HAPPEN MAKE NO EFFORT TO CHANGE OR DRAMATIZE WHAT IS HAPPENING THE NETWORK'S POSITION HOWEVER WAS THAT THE CRASHES WEREN'T STAGED BECAUSE THE PLANTED ROCKET ENGINES DIDN'T SPARK THE FIRE BUT MR KALB A FORMER NBC CORRESPONDENT SAID THAT MAKES IT SEEM AS IF NBC WAS SAYING OH BECAUSE OF AN ACCIDENT WE COULDN'T FAKE IT FOR YOU NBC'S ARGUMENT IS THAT IT REPORTED THE NEWS ACCURATELY AND THAT IS CORRECT BUT IT COULD HAVE REPORTED THE NEWS HONESTLY AS WELL NBC BELATEDLY TOLD VIEWERS ON MONDAY NIGHT'S EVENING NEWS ALMOST 12 WEEKS AFTER IT AIRED THE GM STORY THAT IT HAD USED THE ROCKETS THE NETWORK OWNED BY GENERAL ELECTRIC CO WAS EXPECTED TO ELABORATE ON LAST NIGHT'S DATELINE NBC WHEN THE SETTLEMENT WAS ANNOUNCED IN A LETTER WRITTEN EARLIER TO GM NBC NEWS PRESIDENT MICHAEL GARTNER STOOD BY THE UNSCIENTIFIC DEMONSTRATIONS AS THEY HAD BEEN REFERRED TO ON AIR THE SPARKING DEVICE WAS INTENDED TO SIMULATE SPARKS WHICH COULD OCCUR IN A COLLISION HE WROTE THE CRASH DEMONSTRATION WOULD THEN SHOW IF GASOLINE WERE RELEASED THE EXTENT OF THE DANGER ALLEGED BY CRITICS OF THE GM TRUCK DESIGN LAST NIGHT'S DATELINE STATEMENT SAID HOWEVER UNSCIENTIFIC DEMONSTRATIONS SHOULD HAVE NO PLACE IN HARD NEWS STORIES AT NBC THAT'S OUR NEW POLICY BRIAN O'NEILL PRESIDENT OF THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY A NONPROFIT GROUP SPONSORED BY INSURANCE COMPANIES IN ARLINGTON VA CALLED NBC'S USE OF IGNITERS DISHONEST IT'S PERMISSIBLE IF YOU TELL EVERYBODY UP FRONT YOU'RE DOING THE TEST THAT WAY HE SAID BUT IF YOU DON'T SAY IT'S AN ARTIFICIAL IGNITION SOURCE IT'S DISHONEST MOREOVER IF GM'S ASSERTIONS THAT THE TEST VEHICLE'S TANK DIDN'T RUPTURE AND THAT THE GAS SPILLAGE WAS FROM THE FILLER NECK WERE CORRECT HE SAID THAT IS ALSO MISLEADING THE DATELINE STATEMENT SAID NBC DID NOT DISPUTE GM TESTS THAT FOUND NO PUNCTURES IN THE GAS TANKS THAT THEY HAD BEEN OVERFILLED AND THAT THE CARS USED IN THE CRASH SCENE WERE TRAVELING FASTER THAN NBC'S REPORTER SAID THEY WERE GM CONTINUES TO INSIST THE PICKUPS ARE SAFE MR O'NEILL SAID HE BELIEVES NBC RESORTED TO IGNITERS TO GAIN MORE DRAMATIC FILM FOOTAGE HOLLYWOOD WOULD HAVE US BELIEVE THAT CARS CATCH FIRE ALL THE TIME BECAUSE IN FILMS THEY ARE ALWAYS EXPLODING ON IMPACT IN THE REAL WORLD FIRES USUALLY DON'T OCCUR NBC EARLIER POINTED TO WHAT IT SAID WAS SUPPORT FOR ITS TESTING PROCEDURES FROM CLARENCE DITLOW DIRECTOR OF THE CENTER FOR AUTO SAFETY WHO SAID AT A NEWS CONFERENCE THAT NBC'S USE OF IGNITERS WAS AN ACCEPTED PROCEDURE NBC'S TEST PROCEDURES ARE ACCEPTED TEST PROCEDURES THAT ARE UTILIZED THROUGHOUT THE COUNTRY BY LABORATORIES INCLUDING THE DEPARTMENT OF TRANSPORTATION HE SAID BUT HE ADDED LATER THAT HE WASN'T DEFENDING NBC'S PROCEDURES ONLY TRYING TO POINT OUT THAT THE USE OF AN IGNITING DEVICE IS FUNDAMENTALLY SOUND THE ONE EXAMPLE HE CITED WAS IN AN AGENCY TEST TO DETERMINE WHETHER GASOLINE FUMES WERE ESCAPING THROUGH CHARCOAL FILTERS USED AS ANTIPOLLUTION DEVICES BUT OFFICIALS FROM THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID THEY DON'T USE FLAMMABLE FUEL OR IGNITERS IN FUELSYSTEM INTEGRITY TESTS THE TESTING STANDARD REQUIRES AUTO MAKERS TO COLLECT AND WEIGH THE SOLVENT THAT LEAKS FROM A RUPTURED FUEL TANK FOLLOWING IMPACT THEY MUST BE ABLE TO DEMONSTRATE AMONG OTHER THINGS THAT THE LEAKAGE RATE IS NO MORE THAN ONE OUNCE OF SOLVENT PER MINUTE THE OFFICIALS SAID THE EXECUTIVE PRODUCER OF DATELINE NBC JEFF DIAMOND IS NO STRANGER TO TV STORIES ON AUTO SAFETY A PIECE HE PRODUCED IN 1979 FOR ABC'S 20/20 ON DANGERS INVOLVING CERTAIN VOLKSWAGEN BEETLES WON AN EMMY AWARD PRIOR TO LAST NIGHT'S BROADCAST A SPOKESWOMAN FOR MR DIAMOND SAID HE DECLINED TO COMMENT BUT ANOTHER TELEVISION PRODUCER ALLAN MARAYNES OF 20/20 WHO HAS SPECIALIZED IN CARSAFETY ISSUES BOTH IN HIS CURRENT JOB AND PREVIOUSLY AT 60 MINUTES SAID HE HAS NEVER DONE AN AUTOSAFETY PIECE IN HIS LONG CAREER WITHOUT HAVING AN AUTO MAKER RAISE QUESTIONS ABOUT THE VERACITY OF THE FOOTAGE THE DIFFERENCE HE ADDED IS THAT NBC HIRED AN OUTSIDE TESTING FIRM FOR THE GM STORY WHILE IN NONE OF MY SITUATIONS WERE WE IN A RELATIONSHIP IN WHICH WE HAD PAID SOMEONE TO CONDUCT THE TEST FOR US PREVIOUS STORIES HAVE INSTEAD RELIED ON BIG INDEPENDENT AGENCIES THAT HAVE BEEN STUDYING AUTO SAFETY ON THEIR OWN OFTEN WITH GENEROUS BUDGETS THAT FUND DOZENS OF CRASH TESTS NBC PAID FOR JUST TWO TESTS BUT MR MARAYNES DECLINED TO CRITICIZE NBC IT'S MURKY TELEVISION CAN HAVE THE APPEARANCE OF SLEIGHT OF HAND WHEN IT ISN'T WHEN THERE WAS AN EDITORIAL DECISION MADE BY A JOURNALIST WHO WAS SATISFIED HE WASN'T BEING DUPED HE SAID BRUCE INGERSOLL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9302100018 930210 FOREIGN EXCHANGE YEN CLIMBS SHARPLY OVER SPECULATION ABOUT MOVES TO BOOST CURRENCY FURTHER BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE YEN SURGED AS INVESTORS ANTICIPATED THAT PROTECTIONIST PRESSURES ON JAPAN WOULD LEAD TO OFFICIAL MEASURES TO STRENGTHEN THE CURRENCY EVEN FURTHER BUT EVEN AS INVESTORS SCRAMBLED TO GET IN ON THE RALLY DEALERS WARNED IT COULD BE EXAGGERATED LATE IN NEW YORK THE US CURRENCY WAS CHANGING HANDS AT 12123 YEN DOWN 2 FROM 12375 YEN LATE MONDAY IN NEW YORK THE DOLLAR WAS QUOTED AT 16543 MARKS DOWN FROM 16565 MARKS STERLING WAS TRADING AT 14305 DOWN FROM 14385 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16535 MARKS AND AT 12130 YEN PEOPLE ARE WAKING UP TO THE FACT THAT THERE'S A GOOD CHANCE THAT THIS CLINTON ADMINISTRATION IS A LOT MORE TRADEPROTECTIONIST THAN THE BUSH ADMINISTRATION SAID LYNN TIERNEY A VICE PRESIDENT AT SHAWMUT BANK OF BOSTON THIS NEW FOCUS COULD INCREASE PRESSURE ON JAPAN TO REDUCE ITS TRADE SURPLUS DEALERS SAID THAT A LIKELY RESPONSE FROM THE JAPANESE TO SUCH PRESSURE WOULD BE TO SEEK A STRONGER YEN A HIGHER YEN WOULD MAKE JAPANESE EXPORTS MORE EXPENSIVE OVERSEAS AND MAKE IMPORTED PRODUCTS CHEAPER IN JAPAN WITH US TREASURY SECRETARY LLOYD BENTSEN AND JAPANESE FINANCE MINISTER YOSHIRO HAYASHI SCHEDULED TO MEET SATURDAY SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK PLAYERS THINK THERE COULD BE SOME CALL FOR THE YEN TO STRENGTHEN THOUGH JAPAN'S TRADE SURPLUS HAS EXPANDED CONSISTENTLY FOR MORE THAN A YEAR AND THE BENTSENHAYASHI MEETING HAS BEEN BILLED OFFICIALLY AS A GETACQUAINTED SESSION DEALERS SAID THE MARKET IS GIRDING FOR A STATEMENT INDICATING BOTH THE US AND JAPAN WOULD LIKE TO SEE THE YEN RISE TWO NEWS REPORTS IN JAPAN THOUGH DUBIOUS REINFORCED THIS VIEW AND SPURRED YEN BUYERS DEALERS SAID THEY CITED A SPEECH IN KYOTO BY C FRED BERGSTEN WHO HEADS THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK CALLING FOR A 1520 STRENGTHENING OF THE YEN AGAINST THE DOLLAR IN ADDITION A JAPANESE NEWSPAPER REPORTED THAT THE EUROPEAN PARLIAMENT HAD CALLED FOR THE YEN TO STRENGTHEN AGAINST EUROPEAN CURRENCIES TO RESOLVE TRADE IMBALANCES AFTER A MODEST YEN RALLY DEALERS SAID THE MARKET WAS CAREFULLY WATCHING FOR A CONTINUATION ON THE BACK OF THE JAPANESE REPORTS THE FOLLOWTHROUGH OVERNIGHT WAS TREMENDOUS SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP ONCE EUROPEAN AND NORTH AMERICAN TRADING BEGAN HE SAID MASSIVE BUYING OF YEN CARRIED THE CURRENCY YET HIGHER BUT PLAYERS QUESTIONED SUCH A SHARP MOVE ON WHAT THEY DESCRIBED AS MEAGER MOTIVATION FUNDAMENTALLY THERE'S NO JUSTIFICATION FOR THIS SAID MS TIERNEY OF SHAWMUT BANK DEALERS NOTED THAT MR BERGSTEN A TREASURY OFFICIAL IN THE CARTER ADMINISTRATION HAS BEEN CALLING FOR A STRONGER YEN FOR SOME TIME WITHOUT APPARENT INFLUENCE AS FOR THE EUROPEAN PARLIAMENT THE JAPANESE NEWSPAPER REPORT COULDN'T BE CONFIRMED AND PLAYERS NOTED THAT THE INSTITUTION HAS LIMITED POWERS ANYWAY PLAYERS SAID MARKET IMPATIENCE COULD BE BEHIND MUCH OF THE YEN'S CLIMB IT'S BEEN A LONG TIME SINCE WE'VE SEEN A MOVE IN THE YEN LIKE THIS SO PEOPLE SEEM TO BE OVERREACTING SAID GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK IN NEW YORK 9302100017 930210 TECHNOLOGY NEW CHIP ORDERS ROSE TO RECORD IN JANUARY DRIVEN BY PC DEMAND SAN JOSE CALIF NEW ORDERS FOR SEMICONDUCTORS IN THE US SOARED TO A RECORD IN JANUARY DRIVEN BY STRONG DEMAND FOR PERSONAL COMPUTERRELATED PRODUCTS SUCH AS MICROPROCESSORS JANUARY ORDERS BASED ON THE MOST RECENT THREEMONTH AVERAGE WERE 202 BILLION UP ALMOST 7 FROM DECEMBER'S 19 BILLION AND ALMOST 40 HIGHER THAN THE 145 BILLION A YEAR EARLIER IT WAS THE FIRST TIME ORDERS HAVE TOPPED 2 BILLION ACCORDING TO THE SEMICONDUCTOR INDUSTRY ASSOCIATION THE BOOKTOBILL RATIO THE INDUSTRY'S KEY BAROMETER WAS 119 UP FROM A REVISED DECEMBER RATIO OF 111 THAT MEANS THAT FOR EVERY 100 WORTH OF PRODUCTS SHIPPED THERE WERE 119 MILLION IN NEW ORDERS A RATIO ABOVE 1TO1 INDICATES GROWTH AND THE 119 RATE GIVES FURTHER EVIDENCE THAT THE CHIP MARKET IS IN FULL RECOVERY JANUARY SHIPMENTS BASED ON A THREEMONTH AVERAGE WERE 1703 BILLION UP SLIGHTLY FROM THE 1702 BILLION IN DECEMBER AND ALMOST 29 HIGHER THAN 132 BILLION A YEAR EARLIER 9302100016 930210 COMMONWEALTH EDISON PLANT GETS BETTER RATING CHICAGO THE NUCLEAR REGULATORY COMMISSION REMOVED COMMONWEALTH EDISON CO'S ZION NUCLEAR FACILITY FROM THE SHORT LIST OF PLANTS THAT RECEIVE EXTRA SCRUTINY THE NRC PUT THE ZION 1 AND 2 UNITS ON ITS CLOSEWATCH LIST IN JANUARY 1991 FOLLOWING A FINDING THE COMMISSION LABELED AS MANAGEMENT AND OPERATING WEAKNESSES THE PLANTS WERE TO REMAIN ON THE LIST UNTIL COMMONWEALTH DEMONSTRATES A PERIOD OF IMPROVED PERFORMANCE THE NRC SAID FOR MORE THAN A YEAR COMMONWEALTH HAS BEEN THE ONLY UTILITY OWNING TWO PLANTS ON THE LIST BUT THE NRC TOLD COMMONWEALTH IN A FEB 5 LETTER THAT CLOSE MONITORING OF THE PLANT NEAR ZION ILL IS NO LONGER WARRANTED BECAUSE OF ITS IMPROVED OVERALL PERFORMANCE UNITS 2 AND 3 OF COMMONWEALTH EDISON'S DRESDEN STATION PLANT PLACED ON THE LIST IN EARLY 1992 ARE IMPROVING THE NRC SAID HOWEVER THE COMMISSION NOTED IT IS OUR VIEW THAT FURTHER IMPROVEMENT IS NEEDED THEREFORE DRESDEN WILL STAY ON THE LIST 9302100015 930210 LETTERS TO THE EDITOR CALIFORNIA DAMPENS FIRE SERVICE BUDGET YOUR JAN 13 EDITORIAL THE REAL AMERICA CONTAINS AN INACCURATE STATEMENT ABOUT THE POSITION TAKEN BY CALIFORNIA WITH RESPECT TO PRESERVING FUNDS FOR THE STATE'S FIRE SERVICE SPECIFICALLY YOU CLAIM THAT DURING THE PAST BUDGET CRISIS THE GOVERNOR TOOK A STAND TO DISALLOW THE REDUCTION OF POLICE AND FIRE SERVICES THIS IS NOT SO NEITHER THE GOVERNOR NOR THE LEGISLATURE TOOK ANY ACTION TO PROTECT THE FUNDING FOR CRITICAL FIRE PREVENTION SUPPRESSION AND EMERGENCY MEDICAL SERVICES STATEWIDE IN FACT THE STATE REFUSED TO COMPLY WITH AN APPELLATE COURT ORDER REQUIRING REIMBURSEMENT TO FIREFIGHTING ENTITIES FOR STATEMANDATED PROGRAMS DEALING WITH THE FIRE SERVICE THIS ACTION HAS FORCED SEVERAL FIRE AGENCIES CITIES COUNTIES AND SPECIAL DISTRICTS TO CONSIDER OR TAKE STEPS IN LITIGATION TO PRESERVE WHAT IS ALREADY A CRITICAL LEVEL OF FUNDING THE VACAVILLE FIRE PROTECTION DISTRICT IS A SMALL RURAL DISTRICT WE COVER 135 SQUARE MILES HAVE FOUR FIRE STATIONS AND A PAID STAFF OF FIVE FIREFIGHTERS A FIRE CHIEF AND AN ADMINISTRATIVE ASSISTANT OUR TOTAL TAX REVENUES ARE 525000 WITH WHICH TO PROVIDE EMERGENCY FIRE AND MEDICAL SERVICES THE STATE HAS DETERMINED THAT OUR FUNDS WILL BE CUT BY 55000 IN AN EFFORT TO PRESERVE OUR FUNDING AND CONTINUE TO PROVIDE AN ACCEPTABLE LEVEL OF EMERGENCY SERVICES WE HAVE JOINED FOUR OTHER FIRE DISTRICTS IN FILING A WRIT OF MANDAMUS AGAINST THE COMPTROLLER OF THE STATE OF CALIFORNIA IT IS INDEED IRONIC THAT A WELFARE RECIPIENT HAS MORE PROTECTION IN TERMS OF HIS FINANCIAL SUPPORT IN CALIFORNIA THAN DOES A GOVERNMENTAL SERVICE THAT SAVES AND PROTECTS LIVES AND PROPERTY 9302100014 930210 POLITICS & POLICY FOR BETTER OR WORSE CLINTON'S TV TOWN MEETING USHERS IN A NEW PERIOD IN AMERICAN DEMOCRACY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S NO DOUBT ABOUT IT TOWNHALL DEMOCRACY IS HERE SAYS JEFFREY ABRAMSON A BRANDEIS UNIVERSITY POLITICAL SCIENTIST THE BIG QUESTION FOR ALL OF US IS IS IT GOOD OR BAD GOOD OR BAD A BRAVE NEW WORLD IN NATIONAL GOVERNMENT BEGINS TONIGHT AT A TELEVISION STUDIO IN SOUTHFIELD MICH OUTSIDE DETROIT WHERE PRESIDENT CLINTON WILL CONDUCT A TOWNHALL MEETING ABOUT JOBS AND THE ECONOMY HE WILL BE HOOKED UP BY SATELLITE TO STUDIO AUDIENCES IN SEATTLE ATLANTA AND MIAMI AND THE WHOLE PERFORMANCE WILL BE BROADCAST NATIONALLY AS SOON AS MR CLINTON WRAPS UP HIS HOURLONG SESSION VICE PRESIDENT ALBERT GORE WILL OPEN HIS OWN SHOW IN A HIGHSCHOOL CAFETERIA IN ONTARIO CALIF WHERE HE AND INVITED GUESTS WILL TALK ABOUT STRENGTHENING THE ECONOMY CSPAN THE CABLE NETWORK WILL AIR MR GORE'S SHOW ON A DELAYED BASIS TOMORROW HILLARY RODHAM CLINTON WILL TAKE PART IN AN ALLDAY HEALTHCARE CONFERENCE IN HARRISBURG PA SOME OF WHICH MAY BE CARRIED LIVE ON CABLE TV MEANWHILE WAITING IN THE WINGS IS ROSS PEROT WHO VOWS HE WILL BRING STATEOFTHEART ELECTRONIC TOWN MEETINGS TO THE NATION BY YEAR'S END TOWNHALL DEMOCRACY IS A NATURAL OUTGROWTH OF A PRESIDENTIAL CAMPAIGN THAT BROKE GROUND IN THE USE OF 800 TELEPHONE NUMBERS SATELLITE HOOKUPS RADIO AND TV TALK SHOWS ELECTRONIC MAIL AND HUNDREDS OF INTERACTIVE TOWNHALL SESSIONS PRESIDENTS HAVE USED TOWN HALLS IN THE PAST AS PART OF A BROADER PROGRAM OF MEDIA AND PUBLIC RELATIONS BUT THE CLINTON TEAM IS DOING SOMETHING DIFFERENT BRINGING IN STATEOFTHEART TECHNOLOGY IN AN EFFORT TO LEAPFROG THE JOURNALISTIC MEDIA AND TAKE THE PRESIDENT'S CASE DIRECTLY TO CITIZENS GOOD OR BAD THE WHITE HOUSE UNDERSTANDABLY SAYS IT'S GOOD IT IS PRESIDENT CLINTON'S PURPOSE TO LISTEN TO PEOPLE AND TO UPDATE THEM ON WHAT HE'S DOING SAYS JEFF ELLER WHITE HOUSE DIRECTOR FOR MEDIA AFFAIRS AND A SPECIALIST IN ELECTRONIC COMMUNICATIONS PROF ABRAMSON IS SKEPTICAL TONIGHT'S SESSION HE ARGUES IS PURE POLITICS AND THAT'S NOT ENTIRELY GOOD PRESIDENT CLINTON HAS SUFFERED IN HIS FIRST DAYS IN OFFICE AND THIS IS A WAY TO JUMP OVER THE MEDIA AND SCORE POLITICAL POINTS WITH THE PUBLIC HE SAYS CHARLES FIRESTONE DIRECTOR OF THE ASPEN INSTITUTE'S COMMUNICATION AND SOCIETY PROGRAM WHICH HAS BEEN ATTEMPTING TO CREATE RULES AND STANDARDS FOR ELECTRONIC TOWNHALL MEETINGS OBSERVES THAT THE TECHNOLOGY SIMPLY JUMPS OVER ALL THE MIDDLE GUYS IT JUMPS OVER THE TEACHER FOR NOW YOU CAN LEARN AT HOME IT JUMPS OVER THE RETAILER FOR NOW YOU CAN SHOP AT HOME AND OF COURSE IT JUMPS OVER THE MEDIA FOR THE POLITICIAN CAN NOW TALK TO THE VOTERS AND GET THEIR RESPONSES WITHOUT THE MEDIA'S MEDIATION ONCE UPON A TIME PRESIDENTS HELD FORMAL PRESS CONFERENCES AT REGULAR INTERVALS WHERE THE JOURNALISTS ASKED THE QUESTIONS EVEN THOUGH MR CLINTON WOULD APPEAR TO BE THE SORT OF HANDS ON ADMINISTRATOR WHO COULD PERFORM WELL IN SUCH A SETTING NO LARGESCALE PRESS CONFERENCES HAVE BEEN HELD AND SAYS DEE DEE MYERS MR CLINTON'S PRESS SECRETARY THERE ARE NO FORMAL PLANS RIGHT NOW FOR ANY INSTEAD MEMBERS OF THE WASHINGTON PRESS CORPS CAN ONLY TAG ALONG TO WATCH THE TOWN MEETING OR LIKE EVERYONE ELSE STAY HOME AND WATCH IT ON TV EXPERTS SUGGEST THAT MR CLINTON'S MEETING TONIGHT WILL ONLY HINT AT WHAT'S TO COME IN PUSHBUTTON DEMOCRACY THE PRESIDENT WILL APPEAR IN THE STUDIOS OF WXYZTV BEFORE AN AUDIENCE OF 60 VOTERS MR ELLER SAYS THE WHITE HOUSE LAID DOWN TWO RULES THAT THE PEOPLE CHOSEN BY THE STATION TO PARTICIPATE WON'T BE DISRESPECTFUL AND THAT AS MUCH AS POSSIBLE THEY REPRESENT A REASONABLE GEOGRAPHIC AND DEMOGRAPHIC CROSS SECTION AL UPCHURCH A SPOKESMAN FOR THE STATION SAYS WXYZ AGREED TO THOSE GROUND RULES AND SET UP A HOTLINE FOR PEOPLE WISHING TO APPEAR IN THE STUDIO THEY WERE ASKED TO GIVE THEIR NAMES AND ADDRESSES AND STATE THE QUESTION THEY WANTED TO ASK THE PRESIDENT WE WANT TOUGH QUESTIONS SAYS MR UPCHURCH THAT'S THE WHOLE IDEA THE QUESTIONS AREN'T BEING PASSED ON TO THE WHITE HOUSE THE STATION SAYS THE SAME GROUND RULES WERE APPLIED TO THE SELECTION PROCESS AT THE THREE OTHER TV STATIONS TAKING PART IN THE PROGRAM PEOPLE IN THOSE AUDIENCES WILL ASK QUESTIONS TOO STUDENTS OF THE NEW TECHNOLOGY SAY IT'S CRUCIAL THAT THE AUDIENCES AND QUESTIONS IN SUCH TOWN HALLS BE INDEPENDENTLY SELECTED IF YOU CONTROL THE QUESTION GOING OUT SAYS MR FIRESTONE YOU PROBABLY CAN CONTROL THE MESSAGE COMING IN MR CLINTON'S TOWN HALLS PASS THAT TEST STILL MISSING FROM MR CLINTON'S TOWNHALL FORMAT AT LEAST FOR NOW IS FEEDBACK IN WHICH THOUSANDS OF TV VIEWERS CAN INTERACT BY REGISTERING THEIR OWN OPINIONS THE TECHNOLOGY EXISTS WITH 800NUMBER SERVICE IN WHICH 10000 CALLS CAN BE HANDLED EVERY 10 SECONDS MOREOVER THE COMPUTER CAN PICK UP CALLER PHONE NUMBERS WITH AUTOMATIC NUMBER IDENTIFICATION THAT'S THE KIND OF TECHNOLOGY THAT MR PEROT THE BILLIONAIRE POPULIST IS EXPERIMENTING WITH THE GOAL IS TO COLLECT FEEDBACK FROM ALL PARTS OF THE COUNTRY THROUGH HIS TELEVISED TOWN HALL MEETINGS AND BREAK IT DOWN BY CONGRESSIONAL DISTRICT THIS IS A PRESSURE TACTIC COMPLAINS PROF ABRAMSON HE'S TRYING TO MAKE CONGRESS HIS PERSONAL SLAVE HE NOTES THAT WHEN MR PEROT USED CALLIN TECHNOLOGY LAST FALL WHILE DECIDING WHETHER TO REENTER THE PRESIDENTIAL RACE THERE WAS NO WAY TO SAY NO THE CONCERN AMONG MANY EXPERTS IN THE FIELD IS THAT PUSHBUTTON TECHNOLOGY LEADS INEVITABLY TO PLEBISCITARY DEMOCRACY WHICH PROVIDES LITTLE OPPORTUNITY FOR HUMAN CONTACT OR MUTUAL PERSUASION MASTERS OF THE TECHNIQUE PROF ABRAMSON SAYS WERE NAPOLEON AND ARGENTINA'S JUAN PERON THE HOLDING OF A YES OR NO VOTE ENABLED THEM TO GIVE THE APPEARANCE OF POWER TO SCATTERED INDIVIDUALS EVEN WHILE CONTROLLING WHO SPOKE TO THE PEOPLE AND WHAT IDEAS WERE HEARD TO AVOID SUCH DANGERS EXPERTS IN THIS EMERGING TECHNOLOGY ARE WORKING TO DESIGN ELECTRONIC TOWN MEETINGS THAT EXPAND POLITICAL PARTICIPATION BY US VOTERS WITHOUT DAMAGING THE PROCESS THEY ENVISION A SERIES OF NATIONAL MEETINGS RUN BY AN INDEPENDENT COMMISSION THAT WOULD TAKE ON CRUCIAL ISSUES ONE AT A TIME ON HEALTH CARE FOR INSTANCE THE PRESIDENT AND HIS KEY ADVISERS WOULD LEAD OFF BY DESCRIBING THEIR PACKAGE REPUBLICAN LEADERS WOULD RESPOND WITH THEIR OWN JOURNALISTS AND ORDINARY CITIZENS WOULD JOIN IN FINALLY VIEWERS WOULD USE AN 800 NUMBER TO PARTICIPATE THE SAME 800NUMBER TECHNOLOGY COULD BE USED TO TAKE A VOTE ON WHICH PACKAGE SHOULD BE ADOPTED AND THOSE NUMBERS COULD BE RUN ACROSS THE SCREEN AS THE MEETING WAS IN PROGRESS BUT THOSE EXPECTING A HIGH LEVEL OF DISCOURSE MIGHT STILL BE DISAPPOINTED JUST LAST WEEK CALIFORNIA STATE SEN ART TORRES DIPPED INTO THE NEW TECHNOLOGY TO HOLD A TELEVISED PHONEIN LEGISLATIVE HEARING ON A PLAN TO BOOST THE GASOLINE TAX TO PAY FOR UNIVERSAL NOFAULT AUTO INSURANCE THE PHONE LINES WERE JAMMED ONE CALLER ACCUSED THE LEGISLATORS OF TRYING TO GOUGE MONEY WHILE ANOTHER DECLARED THE PLAN STINKS STILL THE CABLETV NETWORK THAT CARRIED THE SHOW HOPES TO TRY IT AGAIN DETAILS OF PRESIDENT CLINTON'S NATIONWIDE ELECTRONIC TOWN MEETING TONIGHT 9302100013 930210 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9302100012 930210 LETTERS TO THE EDITOR FDA STRIKES AGAIN IT WAS REFRESHING TO SEE YOUR JAN 12 EDITORIAL KESSLER AND CLINTON'' ABOUT FDA COMMISSIONER DAVID KESSLER AS A PHYSICIAN PRACTICING WOMEN'S HEALTH CARE I HAVE BEEN BEMUSED TO FIND DR KESSLER AND THE FOOD AND DRUG ADMINISTRATION CREATING INCREDIBLE DIFFICULTIES AND DENYING ACCESS OF HEALTH CARE PRODUCTS TO WOMEN PARTICULARLY THE HORRENDOUS LEAKING'' OF THE BREAST IMPLANT CONTROVERSY AND THE BUREAUCRATIC TIEUP OF WOLF CO'S PRODUCTION OF THE HULKA CLIPS FOR FEMALE STERILIZATION THE HULKA CLIP HAS BEEN MADE BY WOLF CO FOR MORE THAN 15 YEARS AND HAS BEEN USED ACROSS THE US FOR FEMALE STERILIZATION THROUGHOUT THAT TIME FOR SOME REASON OR OTHER HOWEVER THE FDA HAS DECIDED TO TIE UP THAT PRODUCT IN INCREDIBLE PAPER WORK KEEPING IT OFF THE MARKET FOR THE PAST YEAR 9302100011 930210 WHO'S NEWS CARTER HAWLEY PICKS DWORKIN TO SUCCEED HAWLEY AS ITS CHIEF LOS ANGELES CARTER HAWLEY HALE STORES INC NAMED DAVID DWORKIN CHIEF EXECUTIVE OFFICER OF LONDON'S STOREHOUSE PLC AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE APRIL 1 AS CHIEF EXECUTIVE MR DWORKIN SUCCEEDS PHILIP M HAWLEY 67 THE DEPARTMENTSTORE CHAIN'S CHAIRMAN AND CEO WHO ANNOUNCED IN OCTOBER HIS INTENTION TO STEP DOWN FROM BOTH POSTS THAT ANNOUNCEMENT CAME A WEEK AFTER CARTER HAWLEY EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION UNDER A PLAN IN WHICH INVESTOR SAM ZELL'S ZELL/CHILMARK FUND LTD ACQUIRED A 75 STAKE MR HAWLEY'S SUCCESSOR AS CHAIRMAN HASN'T YET BEEN NAMED MR DWORKIN 49 JOINED STOREHOUSE IN 1989 AS CHAIRMAN AND CHIEF EXECUTIVE OF ITS BRITISH HOME STORES CHAIN WHICH HE IMMEDIATELY BEGAN REJUVENATING THE UNIT GARNERED STRONG PROFIT GAINS THAT HELPED DOUBLE THE PARENT'S PRETAX PROFIT IN FISCAL 1992 EARNING MR DWORKIN HIS REPUTATION AS A TURNAROUND ARTIST IN MAY HE WAS NAMED CHIEF EXECUTIVE OF STOREHOUSE WHICH OPERATES SPECIALTY CHAINS IN THE UK BEFORE STOREHOUSE MR DWORKIN SERVED BRIEF STINTS AS PRESIDENT OF NEW YORK'S BONWIT TELLER AND AS PRESIDENT OF DALLAS'S NEIMAN MARCUS FORMERLY OWNED BY CARTER HAWLEY HE PREVIOUSLY HELD SENIOR EXECUTIVE POSTS WITH DAYTON HUDSON'S MARSHALL FIELD'S UNIT IN CHICAGO AND SAKS FIFTH AVENUE NEW YORK MR ZELL SAID MR DWORKIN'S TURNAROUND SUCCESS AND 25 YEARS' EXPERIENCE WITH MAJOR US RETAIL CHAINS WILL BENEFIT CARTER HAWLEY WHICH NOW MUST CONTEND WITH THE SLUGGISH CALIFORNIA MARKET THE COMPANY'S FLAGSHIP BROADWAY STORE CHAIN IN SOUTHERN CALIFORNIA FACES TOUGH COMPETITION FROM RETAILERS NORDSTROM INC AND MAY DEPARTMENT STORES INC AS WELL AS FROM SPECIALTY RETAILERS SUCH AS SAN FRANCISCO'S GAP INC 9302100009 930210 THREE LAND DEVELOPERS CONVICTED OF FRAUD INVOLVING DIME SAVINGS CONCORD NH THREE LAND DEVELOPERS WERE CONVICTED IN FEDERAL COURT HERE ON CHARGES OF DEFRAUDING DIME SAVINGS BANK OF NEW YORK USING A SECOND MORTGAGE SCHEME TO SELL MORE THAN 12 MILLION IN HOMES FEDERAL PROSECUTORS SAID THE DEFENDANTS OWNERS OF A 190HOME DEVELOPMENT IN MILFORD NH DECEIVED DIME SAVINGS INTO PROVIDING HOME MORTGAGES TO BORROWERS WHO DIDN'T MEET THE BANK'S UNDERWRITING STANDARDS THE DEVELOPERS THEN CONSPIRED TO ADVANCE DOWN PAYMENTS AND SECOND MORTGAGES TO THE BORROWERS WITHOUT NOTIFYING DIME SAVINGS MATTHEW ZSOFKA OF BEDFORD NH JOHN LEE OF MERRIMACK NH AND EVANGELISTE LACROIX OF HOOKSETT NH WERE EACH CONVICTED OF CONSPIRACY TO COMMIT BANK FRAUD AND CONSPIRACY TO MAKE FALSE STATEMENTS TO A FEDERALLY INSURED FINANCIAL INSTITUTION THE JUSTICE DEPARTMENT SAID THE DEFENDANTS FACE A MAXIMUM PENALTY OF FIVE YEARS IN PRISON AND A 250000 FINE FOR CONSPIRACY AND THE SAME PENALTIES FOR BANK FRAUD FOUR OTHER DEFENDANTS WERE RECENTLY CONVICTED FOR INDUCING HOME BUYERS TO MAKE SIMILAR FRAUDULENT STATEMENTS TO DIME INVOLVING THE SAME HOUSING DEVELOPMENT THE JUSTICE DEPARTMENT ADDED IN ADDITION TO THE NEW HAMPSHIRE CASES A CAMBRIDGE MASS CITY COUNCILMAN AND 18 OTHER PEOPLE WERE ALSO INDICTED IN OCTOBER ON FEDERAL CHARGES THAT THEY FRAUDULENTLY RECEIVED 8 MILLION IN RESIDENTIAL LOANS FROM DIME SAVINGS FOR CONDOMINIUM UNITS IN THREE MASSACHUSETTS CITIES DIME SAVINGS OFFERED LOW DOCUMENTATION MORTGAGE LOANS DURING THE 1980S WHICH LED TO NUMEROUS PROBLEMS SUCH AS BUYERS LYING ABOUT FINANCES AND DEVELOPERS CONCEALING OR FALSIFYING INFORMATION 9302100008 930210 WHO'S NEWS VERMONT RESEARCH CORP VERMONT RESEARCH CORP NORTH SPRINGFIELD VT FRED CHALOUX WAS NAMED PRESIDENT OF THE MAKER OF DATA STORAGE DEVICES MR CHALOUX 34 YEARS OLD WAS FORMERLY VICE PRESIDENT OF PRODUCT DEVELOPMENT AT BANYAN SYSTEMS INC A NETWORK SOFTWARE CONCERN IN WESTBOROUGH MASS HE SUCCEEDS EDWARD D WINKLER JR 51 WHO WILL CONTINUE AS CHIEF FINANCIAL OFFICER AND CHIEF OPERATING OFFICER 9302100007 930210 WHO'S NEWS QUIDEL CORP QUIDEL CORP SAN DIEGO MARY LAKE POLAN WAS ELECTED A DIRECTOR INCREASING THE BOARD TO NINE DR POLAN 49 YEARS OLD IS CHAIRWOMAN DEPARTMENT OF GYNECOLOGY AND OBSTETRICS AT STANFORD UNIVERSITY SCHOOL OF MEDICINE QUIDEL DEVELOPS AND PRODUCES NONINSTRUMENTAL DIAGNOSTIC TESTS FOR THE PHYSICIAN OFFICE CLINICAL LABORATORIES AND HOMETESTING MARKET 9302100006 930210 SOME PEOPLE ARE CERTAIN TO HOPE THE LINE WILL HAVE A DEODORANT BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL FANS OF COUNTRYMUSIC SINGER SAMMY KERSHAW CAN NOW SHARE THE SWEET SMELL OF HIS SUCCESS FOR 1950 MR KERSHAW'S ADMIRERS CAN BUY TWO OUNCES OF STARCLONE A NEW WOMEN'S COLOGNE MADE IN PART FROM THEIR IDOL'S SWEAT FOR YEARS A LOT OF PERFUME WAS MADE FROM ANIMALS SAYS THE 32YEAROLD MR KERSHAW SO IF YOU WEAR SOMETHING MADE FROM A BUFFALO WHY NOT FROM ME STARCLONE'S MAKERS SAY FANS ARE RAVING ABOUT THE SCENT SINCE ELVIS IT'S THE FIRST TIME ANYTHING HAS TRIPPED MY TRIGGER A HOUSTON WOMAN WROTE SAMMY SAUCE AS MR KERSHAW'S BAND CALLS STARCLONE IS THE BRAINCHILD OF NEW YORK ADVERTISING EXECUTIVE GEORGE GORDON INTRIGUED BY PHEROMONES SUBTLE ANIMAL ODORS THAT CONVEY INFORMATION TO AND CAUSE RESPONSES FROM OTHER MEMBERS OF THE SAME SPECIES MR GORDON SAW THE NOTION AS A WAY TO EXPLOIT THE RELATIONSHIP BETWEEN A FAN AND AN ARTIST MR GORDON DOESN'T CLAIM THAT HE'S MARKETING KERSHAW PHEROMONES HE CALLS HIS NEW CATEGORY OF FRAGRANCE PHEROESSENCE FRAGRANCE IS ALL IN THE MIND OF THE USER ANYWAY HE SAYS THE PERFUME IS A MEDIUM FOR THE FAN TO FURTHER HER FANSTASY ABOUT HER STAR SO WHAT'S IN THE HEAVILY FLORAL SCENT IT'S SAMMY MR GORDON SAYS IT'S PART OF HIS EMOTION IN LIQUID ASPECT I DON'T WANT TO CONFUSE THIS WITH SCIENCE SOME COUNTRY MUSIC CRITICS WONDER WHY A NEW ARTIST WAS CHOSEN FOR STARCLONE RATHER THAN A PROVEN HEARTTHROB SAMMY IS CUTE IN HIS OWN KIND OF WAY BUT NO ONE'S THROWING BRAS ON STAGE AT HIS SHOWS SAYS ROBERT OERMANN MUSIC CRITIC OF THE TENNESSEAN NEWSPAPER IN NASHVILLE BUT MR GORDON HAD SOUGHT AN ARTIST WHOSE IMAGE WOULDN'T OVERSHADOW THE NEW FRAGRANCE LAST YEAR HE SIGNED MR KERSHAW A FORMER BUILDING CONTRACTOR WHOSE FIRST ALBUM CADILLAC STYLE IS SELLING WELL TO HARVEST HIS BODY ESSENCES MR KERSHAW WEARS A SHIRT WITH SEWNIN PADS UNDER HIS CONCERT OUTFIT AFTER A SHOW THE SHIRT IS PUT IN A PLASTIC BAG AND SENT TO A LAB AT THE UNIVERSITY OF COLORADO THERE SWEAT ABSORBED IN THE PADS IS EXTRACTED DISTILLED AND SENT TO THE PERFUME MANUFACTURER WHO MIXES IT WITH SCENT CONCENTRATES SO WHAT IF IT'S A GIMMICK HOW MANY OTHER PEOPLE DO GIMMICKS MR KERSHAW ASKS GOODNATUREDLY BESIDE I'LL BE THE FIRST PERSON IN THE BOOKS TO DO THIS 9302100005 930210 BUSINESS BRIEF DATADESIGN LABORATORIES INC FIRM REVERSES LOSS TO POST FISCAL 2NDPERIOD PROFIT DATADESIGN LABORATORIES INC BENEFITING FROM A TRIMMED OPERATING LOSS AND A DEBTFOREQUITY SWAP SAID IT TURNED AROUND A LOSS TO POST FISCAL SECONDQUARTER NET INCOME OF 45 MILLION THAT EQUALS 60 CENTS A SHARE COMPARED WITH A LOSS OF 155 MILLION OR 234 A SHARE A YEAR EARLIER WHICH INCLUDED A RESTRUCTURING CHARGE OF 116 MILLION EXCLUDING THE SWAP THAT PUMPED 58 MILLION INTO THE COMPANY THERE WAS A NARROWED LOSS OF 13 MILLION FOR THE PERIOD ENDING DEC 31 REVENUE DECLINED 5 TO 131 MILLION FROM 138 MILLION THE MAKER OF PRINTED CIRCUIT BOARDS IN BEAVERTON ORE SAID THE DECLINE WAS DUE TO THE CLOSURE OF A SUBSIDIARY AND AN UNFAVORABLE SHIFT IN OVERSEAS EXCHANGE RATES FOR THE SIXMONTH PERIOD NET INCOME WAS 29 MILLION OR 39 CENTS A SHARE COMPARED WITH A LOSS OF 196 MILLION OR 296 A SHARE REVENUE FELL ALMOST 18 TO 262 MILLION FROM 319 MILLION 9302100004 930210 CORRECTION IN SOME EDITIONS THE FOLLOWING PARAGRAPH WAS OMITTED FROM THE BEGINNING OF FREDERICK C KLEIN'S FRIDAY ON SPORTS COLUMN FANDOM IS IT IN THE GENES NEWS ITEM SCIENTISTS HAVE ANNOUNCED THEY HAVE DISCOVERED THE GENE THAT DETERMINES WHETHER OR NOT PEOPLE WILL BE SPORTS FANS THEY HAVE DUBBED IT THE F FACTOR AND SPECULATE IT IS LINKED TO SUCH OTHER BEHAVIORAL CHARACTERISTICS AS THE TENDENCIES TO PAINT ONE'S FACE AND WAGGLE AN INDEX FINGER ALOFT WHILE SHOUTING WE'RE NO 1 THE FINDING IS EXPECTED TO STIMULATE NEW CONTROVERSY OVER THE ETHICS OF ALTERING A BABY'S GENETIC MAKEUP BEFORE BIRTH WITH PRESSURES COMING FROM FAN AND NONFAN PARENTS ALIKE 9302100003 930210 TECHNOLOGY COMPAQ'S REVENUE IN EUROPE ROSE 32 IN FOURTH QUARTER LONDON COMPAQ COMPUTER CORP EXECUTIVES SAID EUROPEAN REVENUE JUMPED 32 IN THE FOURTH QUARTER AND ADDED THAT THEY EXPECT CONTINUED GROWTH THIS YEAR BUT THEY WARNED THAT EUROPE'S WEAKENING ECONOMIES MAKE FORECASTS UNCERTAIN AT A NEWS CONFERENCE HERE ECKHARD PFEIFFER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE HOUSTONBASED COMPUTER MAKER SAID THAT IN EUROPE WE'VE BEEN DOING QUITE WELL AND WE'RE PLANNING TO CONTINUE DOING WELL THIS YEAR FOR THE THIRD YEAR IN A ROW COMPAQ FIGURES INDICATED THE EUROPEAN MARKET WAS THE COMPANY'S BIGGEST SALES TERRITORY MAKING UP 46 OF WORLDWIDE SALES OF 41 BILLION THOUGH MR PFEIFFER DECLINED TO FORECAST COMPAQ'S PERFORMANCE MORE SPECIFICALLY HE AND OTHER COMPAQ EXECUTIVES SAID THEY EXPECT THE OVERALL EUROPEAN PERSONAL COMPUTER MARKET TO CLIMB BY MORE THAN 10 THIS YEAR FROM LAST YEAR'S 89 MILLION PCS SHIPPED THAT IS SLIGHTLY FASTER THAN LAST YEAR'S MARKETWIDE 8 LEVEL THEY ADDED THAT AVERAGE PRICECUTTING IN THE INDUSTRY WHICH LAST YEAR WAS WAGING A WORLDWIDE PRICE WAR MAY BE LESS SEVERE IN EUROPE THIS YEAR THE COMPAQ EXECUTIVES SAID THEY PLAN TO GROW FASTER THAN THE OVERALL EUROPEAN PC MARKET THIS YEAR IF THEIR EXPECTATIONS ARE REALIZED THAT WOULD CONTINUE A CORPORATE COMEBACK BEGUN LAST JUNE WHEN COMPAQ REVISED AN UNSUCCESSFUL UPMARKET STRATEGY AND EXPANDED ITS WORLDWIDE PC RANGE TO INCLUDE LOWERPRICE PROLINEA PCS FOLLOWING ITS REPORT LAST MONTH OF A 63 JUMP IN FOURTHQUARTER WORLDWIDE SALES COMPAQ YESTERDAY BROKE OUT ITS EUROPEAN RESULTS SHOWING THAT IT SHIPPED 48 MORE PCS LAST YEAR THAN IN 1991 BECAUSE OF AN INDUSTRYWIDE PRICE WAR THAT REDUCED AVERAGE PC PRICES ACTUAL EUROPEAN SALES RECEIPTS ROSE MORE SLOWLY BY 9 TO 189 BILLION FROM 173 BILLION A YEAR EARLIER 9302100002 930210 COMMODITIES PLATINUM PALLADIUM FUTURES JUMP AS SUPPLIES TIGHTEN IN CIS AND JAPANESE DEMAND GROWS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FUTURES PRICES FOR PLATINUM AND PALLADIUM SOARED AMID STRONG JAPANESE DEMAND AND TIGHTENING SUPPLIES FROM THE COMMONWEALTH OF INDEPENDENT STATES TRADERS AND ANALYSTS SAID ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY ROCKETED 6 HIGHER TO CLOSE AT 36780 AN OUNCE AND PALLADIUM FOR MARCH DELIVERY JUMPED 4 TO FINISH AT A NEW LIFEOFCONTRACT HIGH OF 11715 AN OUNCE IF SUPPLY CONDITIONS BECOME MORE CURTAILED IN RUSSIA THE MARKET COULD BECOME OUTRIGHT EXPLOSIVE WARNED BERNARD SAVAIKO SENIOR METALS ANALYST WITH PAINEWEBBER PLATINUM AND PALLADIUM WHICH HAVE BROAD INDUSTRIAL USES IN THE AUTOMOTIVE AND ELECTRONICS INDUSTRIES ARE BYPRODUCTS OF NICKEL RUSSIA ONE OF THE WORLD'S LARGEST PRODUCERS OF NICKEL IS EXPERIENCING SHARP DECLINES IN OUTPUT OF THAT IMPORTANT BASE METAL ANALYSTS SAID FOR NOW ALL EYES ARE ON TALKS IN TOKYO BETWEEN REPRESENTATIVES OF ALMAZJUVELIREXPORT THE RUSSIAN EXPORT TRADING HOUSE FOR ALL PLATINUMGROUP METALS AND MAJOR JAPANESE INDUSTRIAL USERS CONCERNS IN TOKYO THAT THE RUSSIANS WILL NOT BE ABLE TO SUPPLY JAPANESE INDUSTRIAL USERS AT CURRENT LEVELS BOOSTED CASH PRICES IN ASIA WITH SPILLOVER EFFECTS FELT IN THE NEW YORK FUTURES MARKET ANALYSTS SAID THE MARKET STARTED TO FIRM UP IN THE FAR EAST AND SET THE HIGHER TONE FOR NEW YORK SAID MR SAVAIKO ADDS WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH THE CONCERNS ARE NOT ONLY ABOUT QUANTITY OF MATERIAL BUT QUALITY AS WELL I DON'T THINK THE PROBLEM IS GOING TO CLEAR ITSELF UP ANY TIME SOON A STRONG RISE IN THE YEN YESTERDAY ALSO HELPED TO BOOST FUTURES PRICES OF PLATINUM AND PALLADIUM TRADERS SAID THE DOLLAR FELL AGAINST THE YEN NEARLY 2 THE APPRECIATION OF THE JAPANESE YEN MADE THE COST OF THOSE METALS EXTREMELY CHEAP TO JAPANESE INDUSTRIAL USERS SAID BERNARD PENNER A SENIOR BULLION TRADER WITH RUDOLF WOLFF A LONDONMETALS EXCHANGE COMMODITY HOUSE BUT MR PENNER STRESSED THE OVERRIDING CONCERN IS THAT THE RUSSIANS HAVE NOT COMPLETED ANY OF THEIR NEGOTIATIONS FOR THE SALES OF PLATINUM AND PALLADIUM WITH THE JAPANESE MEANWHILE GOLD AND SILVER FUTURES PRICES FAILED TO RIDE THE RALLY IN PLATINUM AND PALLADIUM FUTURES OF THE TWO PRECIOUS METALS CONTINUED TO LANGUISH IN A NARROW RANGE GOLD FOR APRIL DELIVERY CLOSED 50 CENTS HIGHER AT 32960 AN OUNCE WHILE SILVER FOR MARCH DELIVERY ENDED 33 CENTS HIGHER AT 370 AN OUNCE IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES RALLIED IN VOLATILE TRADING RECOUPING MUCH OF MONDAY'S SHARP FALL ON THE COFFEE SUGAR & COCOA EXCHANGE THE ACTIVELY TRADED MAY CONTRACT FINISHED 205 CENTS HIGHER AT 6385 CENTS A POUND HAVING TOUCHED LOWS OF 5920 CENTS AND HIGHS OF 6410 CENTS ON THE DAY COFFEE FOR MARCH DELIVERY WAS ALSO UP 205 CENTS TO 5930 CENTS A POUND AFTER SWINGING WILDLY FROM LOWS OF 5450 CENTS TO A HIGH OF 60 CENTS A POUND ON THE DAY THE FIRMER TONE WAS A MARKED CHANGE FROM MONDAY'S 510 CENT DECLINE IN THE MAY CONTRACT'S CLOSING PRICE WHICH HAD BEEN TRIGGERED BY HEAVY SELLING AMONG SPECULATORS AND COFFEE EXPORTTRADING HOUSES THE ROASTERS AND THE TRADING HOUSES WERE BARGAIN HUNTERS AT YESTERDAY'S LOWER OPENING PRICES SAID JUDITH GANES A COFFEEFUTURES ANALYST WITH MERRILL LYNCH ENERGY OIL PRICES SLID IN LIGHT TRADING AHEAD OF THIS WEEKEND'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MARKET PLAYERS FREQUENTLY TAKE TO THE SIDELINES BEFORE OPEC MEETINGS FOR FEAR THEY WILL GET CAUGHT BY SURPRISE IN THE EVENT OF THE PRICE SWINGS THAT THE MEETINGS CAN OFTEN SPARK TRADERS SAID WIDESPREAD CALLS BY VARIOUS OPEC MEMBERS TO REDUCE THE CARTEL'S PRODUCTION CEILING BY ONE MILLION BARRELS A DAY HAVE BEEN OFFSET BY DOUBTS OVER COMPLIANCE ON THE NEW YORK MERCANTILE EXCHANGE LIGHT SWEET CRUDE FOR MARCH DELIVERY EASED THREE CENTS A BARREL TO 2005 THE CONTRACT TRADED BETWEEN 1992 A BARREL AND 2009 HEATING OIL AND GASOLINE CONTRACTS ALSO FELL SLIGHTLY GRAINS AND SOYBEANS WHEAT FUTURES PRICES ROSE AFTER THE US AGRICULTURE DEPARTMENT REPORTED BRISK FOREIGN SALES OF US WHEAT THE USDA'S WEEKLY EXPORT INSPECTION SHOWED EXPORTS OF 31 MILLION BUSHELS OF WHEAT THIS HIGH TOTAL SURPRISED MANY TRADERS BECAUSE RUSSIA'S CREDIT PROBLEMS HAVEN'T ALLOWED IT TO BE A BUYER OF US GRAIN SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO YESTERDAY'S RALLY WAS ALSO FUELED BY THE PROSPECT OF TIGHT SUPPLIES OF HIGHQUALITY WHEAT AS DELIVERY LOOMS FOR THE MARCH WHEAT CONTRACT THE PRICE OF THE MARCH CONTRACT ROSE 65 CENTS TO 367 A BUSHEL 9302100001 930210 INSIDE TRACK UNO RESTAURANT EXECUTIVES BUY STOCK AFTER TAKEOVER TALKS FALL THROUGH BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FIVE EXECUTIVES AT UNO RESTAURANT CORP BOUGHT STOCK IN THE PIZZA CHAIN LAST MONTH AFTER NEGOTIATIONS FOR A TAKEOVER BY MORRISON RESTAURANTS INC BROKE DOWN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE LARGEST PURCHASE 20000 SHARES WAS BY AARON D SPENCER CHAIRMAN AND CHIEF EXECUTIVE OF THE WEST ROXBURY MASS CHAIN MR SPENCER PAID BETWEEN 638 AND 675 FOR THE SHARES IN THREE TRANSACTIONS BETWEEN JAN 19 AND JAN 27 ACCORDING TO THE FILINGS FOR A TOTAL OF 128800 THE LATEST PURCHASES INCREASED HIS HOLDINGS TO ABOUT 44 MILLION SHARES HELD DIRECTLY AND INDIRECTLY THE COMPANY HAD SLIGHTLY MORE THAN NINE MILLION SHARES OUTSTANDING AT THE END OF DECEMBER BUSINESS PROSPECTS HAVE BECOME MORE ENCOURAGING AFTER A DIFFICULT COUPLE OF YEARS SAID ROBERT BROWN CHIEF FINANCIAL OFFICER AND TREASURER WHO HIMSELF BOUGHT 5300 SHARES FOR JUST UNDER 37000 IN LATE JANUARY HE NOTED THAT INSIDERS WERE UNABLE TO BUY STOCK DURING THE NEGOTIATIONS WITH MORRISON MORRISON BASED IN MOBILE ALA ANNOUNCED JAN 11 THAT IT HAD ENDED TALKS AIMED AT ACQUIRING UNO WHICH OPERATES AND FRANCHISES RESTAURANTS UNDER THE PIZZERIA UNO NAME UNDER A LETTER OF INTENT SIGNED IN DECEMBER MORRISON WOULD HAVE ACQUIRED UNO FOR STOCK VALUED AT ABOUT 100 MILLION UNO'S STOCK PRICE WHICH HAD FALLEN TO 5625 IN EARLY NOVEMBER FROM 1450 A SHARE LAST FEBRUARY ROSE DURING THE TAKEOVER TALKS IT TRADED ON THE NEW YORK STOCK EXCHANGE AT MORE THAN 9 A SHARE IN LATE NOVEMBER AND DECEMBER BEFORE SLIDING AGAIN THE INSIDERS WHO BOUGHT LAST MONTH PAID BETWEEN 625 AND 713 A SHARE FOR A TOTAL OF 32300 SHARES ACCORDING TO DOCUMENTS FILED WITH THE SEC THE STOCK TRADED LATE YESTERDAY AT 7 UP 125 CENTS OTHER PURCHASERS OF THE COMPANY STOCK WERE CRAIG S MILLER PRESIDENT WILLIAM GALLUCCI SENIOR VICE PRESIDENT OPERATIONS AND ALAN FOX SENIOR VICE PRESIDENT PURCHASING UNO OWNS 52 RESTAURANTS MOSTLY IN THE NORTHEASTERN US AND FRANCHISES ANOTHER 59 RESTAURANTS AROUND THE COUNTRY IT WAS HIT HARD BY THE RECESSION AND BY INCREASED COMPETITION IN NEW ENGLAND MR BROWN SAID FACTORS THAT ARE EXPECTED TO BE MUCH LESS SIGNIFICANT IN '93 AND AS WE GO ON THE COMPANY REPORTED DECLINES IN EARNINGS IN EACH OF THE PAST TWO FISCAL YEARS EARNING WERE OFF ABOUT 6 FOR THE FISCAL FIRST QUARTER ENDED DEC 27 WHICH THE COMPANY ATTRIBUTED IN PART TO THE EFFECTS OF A SEVERE SNOWSTORM IN NEW ENGLAND AND TO COSTS ASSOCIATED WITH THE DISCONTINUED MERGER NEGOTIATIONS 9302100164 930113 CYRUS VANCE'S BAD EXAMPLE BY RICHARD RYAN CYRUS R VANCE WALL STREET LAWYER ESTABLISHMENT PATRICIAN AND FORMER SECRETARY OF STATE HAS BEEN MUCH IN THE NEWS OF LATE OVER THE PAST YEAR HIS ASSIGNMENT AS THE UNITED NATIONS SPECIAL ENVOY TO THE BALKANS HAS PLACED HIM AT THE CENTER OF THE INCREASINGLY APPALLING CONFLICT IN BOSNIA AND HERZOGOVINA HE IS NOW PRESIDING OVER THE FRACTIOUS AND SEEMINGLY FUTILE GENEVA TALKS BETWEEN BOSNIAN AND SERBIAN LEADERS MORE GENERALLY A NUMBER OF ASSOCIATES FROM MR VANCE'S TERM AS JIMMY CARTER'S SECRETARY OF STATE HAVE BEEN FINDING THEIR WAY BACK TO WASHINGTON THE TREND IS SO NOTICEABLE THAT PUNDITS ARE CALLING THE CLINTON STATE DEPARTMENT CARTER II CARTER I WAS BAD ENOUGH AND CYRUS VANCE DESERVES A GOOD SHARE OF THE BLAME AS MR CARTER'S SECRETARY OF STATE HE WAS A CENTRAL PLAYER IN SOME OF THE MOST DEMORALIZING EPISODES IN RECENT AMERICAN HISTORY ALTHOUGH MR VANCE REMAINS A RESPECTED FIGURE IN WASHINGTON EVEN HIS IDEOLOGICAL OPPONENTS SPEAK WARMLY OF HIS GENTLEMANLY DEMEANOR WHENEVER HE HAS HAD A ROLE IN FOREIGN POLICY THE RESULT HAS BEEN A LOSS OF INFLUENCE AND MORAL AUTHORITY FOR THE US IN HIS CURRENT POSITION MR VANCE HAS DOGGEDLY PURSUED A NEGOTIATED RESOLUTION TO THE BOSNIA CRISIS LONG AFTER IT BECAME CLEAR THAT FIRMER MEASURES WERE IN ORDER HIS STRATEGY SO EVENHANDED IN PRINCIPLE HAS BEEN ONESIDED IN ITS DEFECTS MR VANCE HAS OPPOSED ALLOWING BOSNIA THE ARMS NEEDED TO SAVE ITS PEOPLE HAS ARGUED AGAINST PROTECTIVE MILITARY INTERVENTION BY THE INTERNATIONAL COMMUNITY AND HAS LEGITIMIZED THE SERBIAN WAR CRIMINALS WHO THREATENED TO HARM UN PEACEKEEPING FORCES WARNING THE INTERNATIONAL COMMUNITY TO HEED SUCH THREATS THOUGH OFFICIALLY LINKED TO THE UN MR VANCE HAS CONSULTED FREQUENTLY WITH THE WHITE HOUSE LATE LAST MONTH HE URGED PRESIDENT BUSH TO TAKE NO STEPS THAT MIGHT OFFEND HIS SERBIAN NEGOTIATING PARTNERS LAST WEEK WHEN BOSNIAN OFFICIALS SOUGHT AUDIENCES IN WASHINGTON TO PLEAD FOR MILITARY AID MR VANCE PERSONALLY CALLED BOTH SECRETARY OF STATE LAWRENCE EAGLEBURGER AND MEMBERS OF THE CLINTON TRANSITION TEAM AND ASKED THEM NOT TO SEE THE BOSNIANS MEANWHILE THE CARNAGE IN BOSNIA CONTINUES INCLUDING MASS EXECUTIONS CAMPAIGNS OF RAPE AND TORTURE AND THE EXPULSION OF MILLIONS OF CITIZENS FROM THEIR HOMES BILL CLINTON WOULD DO WELL TO NOTE THE WAYS IN WHICH MR VANCE'S FAILED AGENDA IN THE BALKANS RECALLS THE MISADVENTURES OF THE CARTER STATE DEPARTMENT IN THE LATE 1970S WHILE SECRETARY VANCE PREACHED MULTILATERAL DIPLOMACY AGGRESSORS TOOK ADVANTAGE OF AMERICAN QUIESCENCE MR VANCE'S TENURE AT STATE WITNESSED AN ENORMOUS EXPANSION IN MOSCOW'S NUCLEAR AND CONVENTIONAL ARSENAL AND IN SOVIET ADVENTURISM WHICH CULMINATED IN A FULLSCALE INVASION OF AFGHANISTAN WHEN IT BECAME CLEAR THAT THE STRATEGIC ARMS LIMITATION TREATY NEGOTIATED BY MR VANCE'S STAFF WOULD ALLOW THE SOVIETS TO RETAIN DANGEROUS LEVELS OF WEAPONRY SENATE DEMOCRATS REFUSED TO RATIFY IT AND WERE OPENLY CONTEMPTUOUS OF MR VANCE'S ANEMIC HANDLING OF USSOVIET AFFAIRS WHEN MOSCOW'S CUBAN PROXIES WERE AIDING THE ETHIOPIAN WAR AGAINST SOMALIA MR VANCE ARGUED AGAINST FLEXING US MILITARY MUSCLE IN THE REGION MR VANCE'S 1980 RESIGNATION IN THE MIDST OF THE IRAN HOSTAGE CRISIS SEEMED AN APPROPRIATE END TO A TERM MARKED MORE BY ILLUSIONS THAN BY A CLEARHEADED ASSESSMENT OF THE WORLD ODDLY ENOUGH THOUGH MR VANCE WAS UNWILLING TO CHALLENGE THE SOVIETS IN KEY AREAS LIKE THE HORN OF AFRICA AND THE PERSIAN GULF HE SHOWED NO HESITATION ABOUT PRESSURING ISRAEL TO MAKE CONCESSIONS TO RADICAL ARAB STATES IT IS HARDLY SURPRISING THAT THE VANCE PEACE PROPOSAL FOR BOSNIA INVOLVES BREAKING UP A DEMOCRATIC PROWESTERN COUNTRY INTO ETHNICALLY ALIGNED ENCLAVES SINCE MR VANCE'S WHOLE CAREER TILTS TOWARD THE APPEASEMENT OF BRUTALITY ASSOCIATES OF MR VANCE'S TRACE HIS DIPLOMATIC STYLE BACK TO THE MID'60S WHEN HE WAS AN ASSISTANT TO ROBERT MCNAMARA AT THE JOHNSON PENTAGON THE BITTER TASTE OF THOSE MEMORIES HAS MADE HIM A WALKING EMBODIMENT OF THE VIETNAM SYNDROME HIS SUBSEQUENT WORK ON THE TRILATERAL COMMISSION WHERE HE WORKED WITH THENGOVERNOR JIMMY CARTER GAVE HIM A DISTINCT PREFERENCE FOR MULTILATERAL COOPERATION EVEN AT THE EXPENSE OF AMERICAN INDEPENDENCE AND INITIATIVE IT IS ODD TO SAY THE LEAST THAT A MAN IDENTIFIED BY HIS OPPOSITION TO WHAT HAS BEEN CALLED THE SINGLE MOST SUCCESSFUL FOREIGN POLICY OF THE 20TH CENTURY AMERICA'S OFTEN UNILATERAL CONTAINMENT OF SOVIET COMMUNISM IS NOW DEFINING OUR ROLE IN THE FIRST EUROPEAN WAR SINCE THE END OF WORLD WAR II WITHIN THE CARTER ADMINISTRATION MR VANCE'S CHIEF RIVAL WAS OF COURSE NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI WHO ADVOCATED A FIRMER STANCE WHEN CONFRONTING SOVIET AGGRESSION MR BRZEZINSKI LATER SUMMARIZED HIS OBJECTIONS TO MR VANCE'S FOREIGN POLICY APPROACH BY WRITING THAT MR VANCE PREFERRED TO LITIGATE ISSUES ENDLESSLY TO SHY AWAY FROM THE UNAVOIDABLE INGREDIENT OF FORCE IN DEALING WITH CONTEMPORARY INTERNATIONAL REALITIES AND TO HAVE EXCESSIVE FAITH THAT ALL ISSUES CAN BE RESOLVED BY COMPROMISE CARTER DEFENSE SECRETARY HAROLD BROWN ONCE REMARKED THAT MR VANCE WAS CONVINCED THAT ANYTHING THAT INVOLVED THE RISK OF FORCE WAS A MISTAKE THIS IS A PHOBIA NOT A WORLD VIEW AND AS DISTURBING AS IT IS THAT SUCH A PASSIVE OUTLOOK COULD HAVE ONCE CONTROLLED AMERICAN FOREIGN POLICY CONSIDER THE MORE FRIGHTENING FACT THAT OUR PRESIDENTELECT IS SURROUNDING HIMSELF WITH MR VANCE'S LIEUTENANTS FROM THE CARTER STATE DEPARTMENT MOST NOTABLY WARREN CHRISTOPHER THE SECRETARY OF STATE DESIGNATE AND PETER TARNOFF RUMORED TO BE THE NEXT UNDERSECRETARY OF STATE FOR POLITICAL AFFAIRS NOT ALL OF THE CLINTON FOREIGN POLICY DESIGNATES HOWEVER ARE OBSESSED WITH SELFRESTRAINT THE NATIONAL SECURITY AGENCY NOMINEE ANTHONY LAKE ALTHOUGH HE SERVED AS AN ASSISTANT TO MR VANCE SHOWS SIGNS OF HAVING SHAKEN OFF MR VANCE'S FIXATION ON DIPLOMACY AS A CLINTON CAMPAIGN ADVISER MR LAKE ARGUED FORCEFULLY FOR MILITARY ACTION AGAINST SERBIAN POSITIONS IN BOSNIA AND HE HAS URGED A HARDER LINE ON CHINA MR CLINTON WILL HAVE TO CHOOSE EARLY ON BETWEEN THE BLAND MULTILATERALISM OF MR VANCE AND MR CHRISTOPHER AND THE FOCUSED ACTIVISM THAT BOTH MR CLINTON AND MR LAKE WERE ADVOCATING DURING THE CAMPAIGN SINCE THE BALKANS CONFLICT WILL BE AMONG HIS FIRST TESTS MR CLINTON CAN SHOW AT ONCE THAT WHAT HE LACKS IN EXPERIENCE HE MAKES UP FOR IN RESOLVE THIS WOULD MEAN TAKING ACTIONS THAT CYRUS VANCE HAS OPPOSED LIFTING THE ARMS EMBARGO ON BOSNIA AND HERZEGOVINA ENFORCING A BAN ON SERBIAN MILITARY FLIGHTS AND STRIKING SERBIAN AIRFIELDS AND MILITARY POSITIONS GIVEN MR VANCE'S RECORD BOTH IN THE PAST YEAR AND A DECADE EARLIER THE SPECIAL ENVOY'S OBJECTIONS SHOULD SERVE AS A GOOD INDICATION THAT BILL CLINTON IS ON THE RIGHT TRACK AND THAT MR VANCE'S BAD EXAMPLE IS BEING PROPERLY IGNORED MR RYAN IS A BUSINESS CONSULTANT IN NEW YORK CITY WHO WRITES FREQUENTLY ON INTERNATIONAL AFFAIRS SEE RELATED LETTER LETTERS TO THE EDITOR CYRUS VANCE'S BAD EXAMPLE WSJ FEB 10 1993 9301130087 9302100162 930112 BUSINESS WORLD WHAT HUD'S SECRETARYDESIGNATE WROUGHT SAN ANTONIO TEXAS A TRIP TO THIS CITY OF ABOUT A MILLION PEOPLE IS A REMINDER THAT THE US BUDGET DEFICIT HAS ITS BLESSINGS ONE IS THAT A FIXATION ON IT WILL PROBABLY LEAVE HENRY CISNEROS LESS RUNNING ROOM AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MR CISNEROS MAYOR HERE FROM 1981 TO 1989 AND A CITY COUNCILMAN FOR SIX YEARS BEFORE THAT HAS BEEN A POWER BEHIND THE SCENES SINCE LEAVING OFFICE THROUGH INTELLIGENCE PRESENCE AND CONNECTIONS HE IS WIDELY CREDITED WITH RAISING THE PROFILE OF SAN ANTONIO THANKS PRIMARILY TO THE ALAMO THE TOWN HAS LONG BEEN A TOP TOURIST AND CONVENTION DRAW AND IT HAS BEEN A MILITARY CENTER FOR DECADES BUT NOW IT ASPIRES TO MORE IT CAN BE DIFFICULT TO TELL HOWEVER WHERE THE TRUE MARKETABILITY OF SAN ANTONIO ENDS AND THE MAKEBELIEVE OF GOVERNMENT SUBSIDY BEGINS MUCH OF THAT PUBLIC LARGESS IS A LEGACY OF MR CISNEROS RECENT AND CONTINUING ROAD AND HIGHWAY CONSTRUCTION ARE ALL AROUND THE ALAMODOME A 180 MILLION STADIUM IS ABOUT FINISHED BUT THERE'S ONLY ONE SIGNIFICANT TENANT A PROFESSIONAL BASKETBALL TEAM MOVING FROM THE NEARBY CONVENTION CENTER A MARRIOTT HOTEL AND DEBARTOLO SHOPPING MALL NEAR THE ALAMO WERE BUILT ALONG A SPUR OF THE SAN ANTONIO RIVER THAT FEDERAL TAXPAYERS HELPED CONSTRUCT THE MAIN RIVER WALK CAFE DISTRICT FOR WHICH THE CITY IS FAMOUS WAS FIXED UP FOR A LATE 1960S WORLD'S FAIR THE PUBLIC WORKS IMPLY DYNAMISM AND THAT IS NOT ALL WRONG THIS IS CURRENTLY THE ECONOMICALLY STRONGEST METROPOLITAN AREA IN TEXAS BUT IT IS NOT A WEALTHY PLACE SAN ANTONIO IS THE NATION'S NINTH LARGEST CITY BUT IT ACCOUNTS FOR ONLY THE 35TH BIGGEST CONSUMER MARKET THE DOWNTOWN CORE ONLY A FEW BLOCKS FROM THE MARRIOTT DEVELOPMENT IS RIDDLED WITH EMPTY STOREFRONTS CRIME IS ON NEARLY EVERYONE'S MIND EVEN THE CITY MANAGER AND HIS FAMILY WERE CARJACKED LAST MONTH THE SOUTH AND WEST SECTIONS OF TOWN HEAVILY MINORITY 55 OF THE CITY'S RESIDENTS ARE OF MEXICAN DESCENT LANGUISH WHILE MARKETBASED BUILDING OCCURS ALONG A CORRIDOR TO THE NORTH TOWARD THE HILL COUNTRY MEANWHILE GREAT PROJECTS DESIGNED TO REVIVE THE POORER SECTIONS HAVE BEEN BUSTS A 19 MILLION URBAN DEVELOPMENT ACTION GRANT FROM THE AGENCY THAT MR CISNEROS WILL HEAD PRESUMING HE IS CONFIRMED AFTER HEARINGS TODAY LAID THE GROUNDWORK FOR THE VISTA VERDE SOUTH DEVELOPMENT THAT IS THE FORMER MAYOR'S BIGGEST MILLSTONE THE PLAN BEGAN WITH A COMMITMENT FROM SOCIALLY AWARE CONTROL DATA CORP FOR THREE FACILITIES ON THE SITE JUST WEST OF DOWNTOWN NONE IS ANY LONGER BEING PUT TO ITS INTENDED USE AND THE COMPANY ITSELF IS NO LONGER WHAT IT WAS A RETAIL COMPLEX BUILT NEARBY PLAZA FIESTA IS BOARDED UP LAST SATURDAY MORNING THE ONLY STREET ACTIVITY IN THE DISTRICT WAS SOME DAY LABORERS WAITING FOR PICKUPS IN THESE RESPECTS SAN ANTONIO EPITOMIZES HUD'S FAILURE AS AN ECONOMIC CATALYST THE SWEETEST DEALS HAVE GONE TO WELLPOSITIONED PLAYERS INVESTING IN SAFE IF UNDERUTILIZED AREAS THE MONEY THROWN AT PROBLEM SECTIONS OF TOWN ACCOMPLISHES LITTLE AND MAY EVEN IMPEDE THE OPENING OF STOREFRONT OR LOFT BUSINESSES THAT CAN RISE LIKE MUSHROOMS ON LITTLE SUPPORT MEANWHILE THE AFFLUENT FLEE THE WHOLE SCENE FOR NEW OUTLYING TERRITORY DURING HIS TENURE MAYOR CISNEROS ALSO PUMPED CONSIDERABLE LOCAL RESOURCES INTO HIS EFFORTS BONDS FOR SEVERAL PUBLIC PROJECTS INCLUDING THE ALAMODOME WERE APPROVED AND THE RESULTING CONSTRUCTION HAS BOOSTED THE CITY'S ECONOMIC STATS BUT THE TOLL ON TAXPAYERS IS MOUNTING THANKS TO ANTITAX ACTIVISTS SUCH AS VAN HENRY ARCHER A FORMER ADVERSARY OF MR CISNEROS IN THE CITY COUNCIL A STRING OF PUBLICSECTOR PROPOSALS HAS BEEN DEFEATED AT THE POLLS IN THE PAST COUPLE OF YEARS MR ARCHER COMPLAINS THAT CITY HALL HAS BEEN THE PROVINCE OF INSIDERS DURING THE CISNEROS ERA TO THE DETRIMENT OF OTHER BUSINESSES THAT ARE MORE IMPORTANT THE SAN ANTONIO ECONOMY MAY ENJOY A RELATIVE GLOW BUT CONDITIONS ARE GREATLY SHAPED BY THE TRULY PRIVATE SECTOR SOUTHWESTERN BELL HAS CHOSEN TO RELOCATE ITS HEADQUARTERS HERE BUT THAT WILL NOT MAKE UP IN NUMBERS FOR THE JOBS LOST WHEN LEVI STRAUSS CLOSED ONE OF ITS TWO LOCAL PLANTS EVEN AS VISTA VERDE'S MANUFACTURING PLAN HAS GONE BUST PACE FOODS THE CLOSELY HELD MAKER OF A PICANTE SAUCE WITH SALES GROWTH AT A HOT 15 TO 20 A YEAR IS NEARLY BURSTING AT THE SEAMS OF ITS MAIN FACILITY ON THE OTHER SIDE OF TOWN BECAUSE OF ITS INCREASING RELIANCE ON MEXICAN AGRICULTURE PACE IS ONE OF THE ENTERPRISES MOST EAGER FOR A NORTH AMERICAN FREE TRADE AGREEMENT WHICH MANY SAN ANTONIANS BELIEVE COULD EFFECTIVELY MAKE THEIR CITY THE PORT OF ENTRY FROM MEXICO'S HEARTLAND MEXICAN PROSPERITY ALSO COULD BODE WELL FOR SAN ANTONIO'S TOURIST INDUSTRY WHICH HAS BEEN SUPPLEMENTED IN RECENT YEARS BY TWO MAJOR THEME PARKS NEITHER OF WHICH NOW HAS ENOUGH BUSINESS TO STAY OPEN IN WINTER THE CITY GOVERNMENT HAS TRIED TO UNDERWRITE SUCH VISITOR VENTURES AND HAS DONE THE SAME FOR A BEACHHEAD OF THE ELECTRONICS INDUSTRY ON THE FAR WEST SIDE ADVANCED MICRO DEVICES WHICH LATER SOLD ITS PLANT TO SONY AND CUSTOMCHIP FABRICATOR VLSI TECHNOLOGY RECEIVED TAX ABATEMENTS AND OTHER INDUCEMENTS TO OPEN 200 MILLION IN MANUFACTURING PLANTS VLSI WITH HEADQUARTERS IN SILICON VALLEY IS PLEASED ENOUGH WITH OTHER ATTRIBUTES OF THE AREA INCLUDING AN ASSEMBLING WAGE THAT BEGINS AT 650 AN HOUR FOR RELIABLE WORKERS TO BE EXPANDING SO THERE IS INDEED SOMETHING TO SHOW FOR THE CITY'S HIGHPROFILE DEVELOPMENT DRIVE AN EVEN MORE SIGNIFICANT PUSH IS CONTINUING TO ENHANCE SAN ANTONIO'S STATUS AS A CENTER OF INNOVATIVE MEDICINE MAJOR HEALTH FACILITIES IN THE AREA ARE THE SOURCE OF INTENSIVE SCIENTIFIC WORK IN MOLECULAR BIOLOGY AND CANCER TREATMENT TOP ACADEMIC TALENT IS BEING RECRUITED IN THE HOPES OF ENGENDERING A CONCENTRATION OF BIOMEDICAL INDUSTRY IN THE CITY THIS EFFORT BACKED BY THE USAA INSURANCE GIANT THAT IS THE AREA'S BIGGEST HOMEGROWN CORPORATION AND ONE OF ITS FEW SOURCES OF SEED CAPITAL IS SEEN BRINGING A HIGHWAGE THIRD LEG TO A LOCAL ECONOMY THAT IS HEAVY ON MILITARY AND TOURISM ENCOURAGING HIGHTECH INDUSTRY IS PROBABLY A BETTER USE OF TAX MONEY THAN COURTING CONVENTIONEERS BUT HENRY CISNEROS SPREAD THE GRAVY WIDELY IN ALL HE BROUGHT IN 230 MILLION FROM HUD ALONE NO HEAD OF THAT AGENCY CAN BLESS US MAYORS IN SUCH A FASHION TODAY BUT MR CISNEROS THROUGH CREATIVE PUBLICPRIVATE SCHEMES CAN BE COUNTED ON TO TRY SEE RELATED LETTER LETTERS TO THE EDITOR HUD ISN'T A FAILURE IN ITS REAL MISSION WSJ FEB 10 1993 9301120001 9302100157 930113 REVIEW & OUTLOOK EDITORIAL THE REAL AMERICA DON'T BELIEVE LEON PANETTA FOR A MINUTE WHEN HE SAYS EVERYTHING IS ON THE TABLE IN THE BUDGET BATTLE MR PANETTA IS TALKING ONLY ABOUT THE FEDERAL BUDGET THE REST OF THE COUNTRY'S FISCAL AFFAIRS TOWNS CITIES STATES EXIST MORE OR LESS AS AN ABSTRACTION TO WASHINGTON'S POLICY MAKERS BUT THE FACT IS THAT A LOT OF PRESIDENTELECT CLINTON'S CONSTITUENTS HAVE ALREADY HAD TAXES OR FEES RAISED AT THE LOCAL LEVEL OR ARE WRESTLING WITH BUDGETS THEY CAN'T AFFORD LITTLE OF THIS WILL FIGURE IN MR PANETTA'S BUDGET CALCULATIONS BUT THE CONTINUING STORY OF CALIFORNIA'S FISCAL STRUGGLES SUGGESTS JUST HOW REAL THE ISSUE IS WELL BEYOND THE BELTWAY THE ONE THING NOT GETTING WORSE IN CALIFORNIA AT THE MOMENT IS STATE TAXES AND GIVE GOVERNOR PETE WILSON CREDIT FOR THAT AFTER HIS DISASTROUS 1991 TAX OVERTURE TO THE BIG SPENDERS PUSHED HIS CONSTITUENTS DEEPER INTO RECESSION THE GOVERNOR HAS BEEN RATHER STEADFAST ON THIS FRONT HE MAY YET REDEEM HIMSELF ON THE ISSUE AND IN THE PROCESS PROVIDE SOME FIRMAMENT FOR OTHER DEFICITWEARY PUBLIC OFFICIALS MR WILSON'S LATEST BUDGET REVEALED LAST WEEK PRESUMES EXPIRATION OF A HALFCENT SALESTAX INCREASE ON SCHEDULE THIS YEAR AS WELL AS THE RESUMPTION OF LOSS CARRYFORWARD WRITEOFFS FOR BUSINESSES GETTING OFF THE GROUND OR BACK IN THE BLACK IT IS ENCOURAGING WHEN A POLITICIAN REMEMBERS THAT A TAX WAS TO BE TEMPORARY LEGISLATIVE DEMOCRATS IN SACRAMENTO WOULD LIKE TO FORGET THAT BECAUSE 18 BILLION RIDES ON EXTENSION PUNDITS SPECULATE THAT THIS YEAR'S CALIFORNIA BUDGET BATTLE IS LIKELY TO COME DOWN TO THAT SALESTAX COMMITMENT A TWOTHIRDS VOTE WILL BE NEEDED TO EXTEND THE HALFPENNY ANOTHER YEAR SO IF THE GOVERNOR AND THE REPUBLICAN MINORITY IN THE STATEHOUSE STAND TOGETHER THEY CAN THWART IT WITH MR WILSON'S BUDGET HAVING MOSTLY BOUGHT OFF THE PUBLICSCHOOL LOBBY WHICH FRIGHTENS SUBURBAN GOP LEGISLATORS THIS ALLIANCE SHOULD HOLD THE GOVERNOR'S PLAN DEFUNDS LOCAL GOVERNMENT TO THE TUNE OF 26 BILLION AND THOSE JURISDICTIONS COULD ASK VOTERS TO RESTORE THE SALESTAX INCREASE TO SPARE THEM A NEED TO CUT BUT THE LOCALITIES THANKS TO A WILSON STAND LAST YEAR HAVE GREATER FREEDOM TO REDUCE SERVICES OTHER THAN POLICE AND FIRE SO LONG AS THEY DON'T TRIGGER THE IRE OF AN ACTIVIST JUDGE BY PARING THE WRONG SOCIAL PROGRAM MR WILSON IS ASKING THOSE GETTING HIGHER EDUCATION IN THE STATE TO SHOULDER SOMETHING CLOSER TO WHAT THEY WOULD IN OTHER PLACES COMMUNITYCOLLEGE STUDENTS TYPICALLY PAY ONLY 240 A YEAR AT FOURYEAR SCHOOLS SUCCESSIVE YEARS OF STIFF INCREASES ARE BRINGING HOWLS PERHAPS A TOUGHER LINE ON FEATHERBEDDING FACULTIES COULD CURB OPERATIONS COSTS AND ALLOW FOR A MORE GRADUAL RISE IN FEES BELATEDLY BUT TO HIS CREDIT THE GOVERNOR HAS PROPOSED ACTUALLY ABOLISHING SEVERAL STATE AGENCIES AND COMMISSIONS AND HE IS BACK WITH ANOTHER ATTEMPT TO REIN IN WELFARE EXPENDITURES THE LEGISLATURE GAVE A LITTLE GROUND ON THIS LAST YEAR BUT THE VOTERS TURNED DOWN MR WILSON'S INITIATIVE TO DO MORE CUTTING IN THE END CALIFORNIA AND MANY OTHER STATES WILL NEVER ESCAPE THESE ANNUAL BUDGET SCRAMBLES UNTIL THEY GET WELFARE HEALTH CARE SCHOOLING AND PRISON COSTS UNDER CONTROL IN THE MEANTIME IT HELPS TO HAVE A GOVERNOR WHO WILL HOLD THE LINE ON THE REVENUE SIDE AND MAYBE TRY SOME INCENTIVIST REDUCTIONS OF TAX RATES IN THE PROCESS WE SUSPECT THAT THE WASHINGTON STRATEGY OF MR PANETTA AND FRIENDS MAY BE MOVING IN THE OPPOSITE DIRECTION SEE RELATED LETTER LETTERS TO THE EDITOR THE REAL AMERICA WSJ FEB 10 1993 9301130055 9302100072 930112 REVIEW & OUTLOOK EDITORIAL KESSLER AND CLINTON WE'VE EVEN MADE IT TO HERBLOCK AND JAY LENO MOST BUSH ADMINISTRATION APPOINTEES EXPECT TO LEAVE OFFICE NEXT WEEK WITH GRACE AND PERHAPS A MIX OF PRIDE REGRET OR RELIEF THE EXCEPTION IS DAVID KESSLER THE FOOD AND DRUG REGULATOR WHO IS WORKING ALL ANGLES TO WIN FOUR MORE YEARS UNDER BILL CLINTON A KESSLER REAPPOINTMENT AS FDA COMMISSIONER WOULD SPEAK VOLUMES ABOUT THE CLINTON PRESIDENCY'S ATTITUDE TOWARD THE US'S MOST GLOBALLY COMPETITIVE INDUSTRIES DR KESSLER YOU MAY RECALL IS ONE OF THOSE WHO HELPED GIVE GEORGE BUSH A REPUTATION AS THE REREGULATION PRESIDENT HE'S RESPONSIBLE FOR SUCH LANDMARKS IN GOVERNMENT AS THE CAMPAIGN AGAINST THE LABEL FRESH ON ORANGE JUICE AND THE LEGAL JIHAD AGAINST BREAST IMPLANTS THESE OFFENSIVES MAINLY SUCCEEDED IN GETTING HIM SOME NOTICE ON LATENIGHT TV DR KESSLER BOASTED ABOUT HIS CELEBRITY IN AN ASTONISHING SPEECH LAST MONTH PART OF HIS EFFORT TO SURVIVE THE CHANGE IN ADMINISTRATIONS I AM HERE TODAY TO TALK ABOUT CHANGE LAWYER KESSLER SAID IN STARTING HIS ADDRESS TO THE FOOD AND DRUG LAW INSTITUTE PICKING UP THE CLINTON CAMPAIGN THEME HE PROCEEDED TO KICK MR BUSH IN THE SHINS WHILE TOADYING UP TO THE CLINTON AGENDA IN A MANNER THAT EVEN JADED BELTWAY LAWYERS FOUND REMARKABLE LAST MONTH'S PRESIDENTIAL ELECTION HOLDS SOME VALUABLE INSIGHTS DR KESSLER OPINED WHAT A SIGNIFICANT PORTION OF THE ELECTORATE INDICATED IS THAT IT IS WEARY OF A GOVERNMENT THAT IS DICTATED BY SPECIAL INTERESTS A GOVERNMENT THAT SEEMS TO BE UNWILLING OR UNABLE TO STAND UP FOR THE AVERAGE CITIZEN IT'S PROBABLY JUST A COINCIDENCE THAT DR KESSLER WOULD DESCRIBE THE BUSH ADMINISTRATION WITH SUCH CONTEMPT ONLY AFTER NOVEMBER'S ELECTION IN A 13PAGE SINGLESPACED COMPENDIUM OF HIS SEEMINGLY ENDLESS TRIUMPHS DR KESSLER ALSO PLAYED UP THOSE THAT MIGHT APPEAL TO MR CLINTON AND HIS HEALTH SECRETARYDESIGNATE DONNA SHALALA WE HAVE HIGHLIGHTED THE IMPORTANCE OF WOMEN'S HEALTH ISSUES HE AVERRED IN POLITICALLY CORRECT FASHION WE ARE COMMITTED TO MEETING WITH AND LISTENING TO WOMEN'S HEALTH GROUPS WE UNDERSTAND THAT ISSUES LIKE BREAST IMPLANTS DEPO PROVERA THE FEMALE CONDOM RU486 FOLIC ACID DURING PREGNANCY OF COURSE MANY WOMEN MOST NOTABLY CONGRESSWOMAN MARILYN LLOYD A TENNESSEE DEMOCRAT AND MASTECTOMY PATIENT WERE BITTERLY DISAPPOINTED AT THE MANNER IN WHICH THE KESSLER FDA COOPTED THEIR ABILITY TO MAKE THEIR OWN RISKBENEFIT DECISIONS REGARDING RU486 THE FRENCHMADE ABORTION PILL DR KESSLER HAS DONE A POLICY REVERSAL SINCE ELECTION DAY PREVIOUSLY HE INSISTED ON AMERICAN CLINICAL TRIALS AND TALKED ABOUT THE RISKS OF ANY NEW DRUG ETC BUT IN A REMARKABLE DEC 14 LETTER TO THE PRESIDENT OF THE COMPANY THAT MAKES THE DRUG ROUSSELUCLAF DR KESSLER ALL BUT INVITED IT TO APPLY FOR FDA APPROVAL BASED ON FRENCH TRIALS ALONE IN LIGHT OF EXISTING DATA DR KESSLER WROTE FURTHER CLINICAL TRIALS MAY NOT BE REQUIRED HIS DEPUTY CAROL SCHEMAN SENT A SIMILAR LETTER TO DEMOCRATIC REPRESENTATIVE RON WYDEN ON DEC 15 ROUSSEL PRESIDENT EDOUARD SAKIZ SHOWED HE UNDERSTANDS DR KESSLER'S POLITICAL GAMESMANSHIP WHEN HE RESPONDED BY WRITING INDEED WE ARE PERFECTLY AWARE THAT THE CHANGE IN THE OPINION OF THE AMERICAN ADMINISTRATION WILL MODIFY THE STATUS OF RU486 IN THE US EXHAUSTED VETERANS OF THE DRUGAPPROVAL WARS WILL NO DOUBT APPRECIATE THE SPECTACLE OF THE FDA BUREAUCRACY ACCEPTING FRENCH TRIALS AS THE BASIS FOR THEIR APPROVAL OF THIS DRUG NO DOUBT THE KESSLER SPEECH AND LETTERS HAVE BEEN SENT TO THE CLINTON TRANSITION TEAM WE ALSO HEAR THAT DR KESSLER HAS BEEN PUTTING OUT FEELERS TO MEET VICE PRESIDENTELECT AL GORE WHO HAS SHOWN A SIMILAR REGULATORY ZEAL STILL IT LOOKS LIKE A POOR FIT MR CLINTON PROMISED MORE ACTIVIST GOVERNMENT BUT HE ALSO VOWED HE'D CREATE NO MORE BIG BUREAUCRACIES DAVID KESSLER IS THE ARCHETYPAL BUREAUCRATIC EMPIRE BUILDER THE SORT WHO MAKES ALL KINDS OF ENEMIES FOR A PRESIDENT INSTEAD OF TALKING ABOUT NEW DRUGS APPROVED AND LIVES SAVED DR KESSLER BOASTS THAT THE NUMBER OF INJUNCTIONS THE NUMBER OF SEIZURES THE NUMBER OF CRIMINAL CASES REFERRED TO JUSTICE HAVE ALL INCREASED IN HIS TERM THE CARTER ADMINISTRATION WAS UNDERMINED IN PART BY SUCH SIMILAR NADERITE REGULATORS AS JOAN CLAYBROOK AND MICHAEL PERTSCHUK BEYOND POLICY THE ISSUE IS ALSO LOYALTY IF DR KESSLER CAN SHOW SUCH CONTEMPT FOR THE PRESIDENT WHO APPOINTED HIM WHY SHOULD HE SHOW ANY GREATER DEFERENCE TO BILL CLINTON SEE RELATED LETTER LETTERS TO THE EDITOR KESSLER'S DEVICES WSJ FEB 10 1993 9301120131 9302100057 930119 TLC BEATRICE'S CHIEF STRICKEN BY BRAIN CANCER LEWIS IN COMA IN HOSPITAL OFFICE OF THE CHAIRMAN FORMED BY FOOD FIRM BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TLC BEATRICE INTERNATIONAL HOLDINGS INC SAID ITS CHAIRMAN AND CONTROLLING OWNER REGINALD F LEWIS HAS BEEN HOSPITALIZED WITH BRAIN CANCER AND IS IN A COMA TLC BEATRICE SAID THE 50YEAROLD MR LEWIS HAS HANDED OVER CONTROL OF THE FOOD COMPANY TO A NEW OFFICE OF THE CHAIRMAN LED BY MR LEWIS'S HALF BROTHER JEAN S FUGETT JR A COMPANY SPOKESMAN SAID HE COULDN'T COMMENT FURTHER ON MR LEWIS'S MEDICAL OUTLOOK COLLEAGUES AT TLC BEATRICE SAID MR LEWIS'S ILLNESS DEVELOPED QUITE RECENTLY AT PUBLIC APPEARANCES LAST SUMMER HE APPEARED TO BE IN ROBUST HEALTH THE COMPANY HADN'T DISCLOSED ANY INFORMATION ABOUT MR LEWIS'S ILLNESS UNTIL YESTERDAY A SPOKESMAN SAID MR LEWIS CREATED THE OFFICE OF THE CHAIRMAN AS A PERMANENT FEATURE OF THE COMPANY AND DIDN'T INTEND FOR IT TO BE TEMPORARY THE COMPANY SAID THE NEW LEADERSHIP STRUCTURE WAS COMPLETED EARLY LAST WEEK AND WAS SUBSEQUENTLY APPROVED BY ITS BOARD SECURITIES ANALYSTS SAID TLC BEATRICE IS LIKELY TO BECOME A TAKEOVER CANDIDATE IF MR LEWIS DOESN'T RECOVER I THINK THEY'RE GOING TO PUT THE COMPANY UP FOR SALE SAID JEFFERIES & CO ANALYST SALLY OVERSTREET UNLESS THEY BRING IN SOMEONE FROM OUTSIDE TO RUN IT TLC BEATRICE TRIED LAST NIGHT HOWEVER TO DISPEL TAKEOVER TALK THE COMPANY ISN'T FOR SALE A SPOKESMAN SAID CLOSELY HELD TLC BEATRICE HAS ABOUT 10 MILLION SHARES OUTSTANDING THE COMPANY'S STOCK TRADED MOST RECENTLY AT 47 A SHARE SUGGESTING THAT THE COMPANY WOULD HAVE A MARKET VALUE OF AT LEAST 470 MILLION AND SIGNIFICANTLY MORE IF AN ACQUIRER IS WILLING TO PAY A PREMIUM TO MARKET PRICES MR LEWIS AND HIS FAMILY OWN ABOUT 55 OF THE COMPANY MOST OF THE REMAINING SHARES ARE OWNED BY TLC BEATRICE BONDHOLDERS MR LEWIS ACQUIRED THE COMPANY IN A 985 MILLION LEVERAGED BUYOUT IN 1987 BORROWING ALMOST ALL THE PURCHASE PRICE SINCE THEN TLC BEATRICE HAS BRISKLY REDUCED ITS DEBT BY SELLING ASSETS AND IMPROVING OPERATING EARNINGS THE LEWIS FAMILY'S STAKE ACQUIRED FOR LESS THAN 20 MILLION HAS SOARED TO ALMOST 300 MILLION IN VALUE FOR THE PAST TWO YEARS MR LEWIS HAS APPEARED IN FORBES MAGAZINE'S RANKING OF THE 400 RICHEST AMERICANS THE FIRST BLACK BUSINESSMAN TO MAKE THAT LIST TLC BEATRICE HASN'T YET REPORTED ITS 1992 RESULTS BUT IT HAD MORE THAN 15 BILLION IN SALES IN 1991 MAKING MR LEWIS THE HEAD OF THE LARGEST BLACKOWNED BUSINESS IN THE US THE COMPANY HAS INDICATED THAT ITS EARNINGS LAST YEAR SLIPPED BECAUSE OF THE RECESSION IN EUROPE IN THE FIRST SIX MONTHS OF 1992 TLC BEATRICE HAD NET INCOME OF 145 MILLION DOWN ABOUT 20 FROM A YEAR EARLIER MR LEWIS DOESN'T APPEAR TO HAVE GROOMED A CLEAR SUCCESSOR WITHIN THE COMPANY MR FUGETT 41 IS A FORMER PROFESSIONAL FOOTBALL PLAYER WHO RUNS A LAW PRACTICE IN BALTIMORE THE COMPANY SAID THOUGH THAT MR FUGETT HAS SPENT MUCH OF HIS CAREER AT HIS BROTHER'S SIDE TLC BEATRICE SAID TWO OTHER PEOPLE WILL JOIN MR FUGETT IN THE OFFICE OF THE CHAIRMAN ALBERT FENSTER A PARTNER IN THE NEW YORK LAW FIRM OF KAYE SCHOLER FIERMAN HAYS & HANDLER BECOMES EXECUTIVE VICE PRESIDENT FOR FINANCE AND LEGAL AFFAIRS DENNIS JONES HEAD OF THE COMPANY'S EUROPEAN GROCERY PRODUCTS DIVISION BECOMES EXECUTIVE VICE PRESIDENT FOR OPERATIONS IN A STATEMENT MR FUGETT REAFFIRMED SOME OF MR LEWIS'S OPERATING PRINCIPLES OUR GOAL WILL CONTINUE TO BE TO MAXIMIZE RETURNS FROM EACH OF OUR BUSINESS UNITS CONSISTENT WITH WHAT'S BEST OVER THE LONG TERM HE SAID INVESTORS THOUGH SEEM TO BE BETTING ON A SALE OF THE COMPANY TRADERS AT JEFFERIES SAID WOULDBE BUYERS LATE YESTERDAY WERE OFFERING 50 A SHARE FOR TLC BEATRICE'S STOCK UP 3 FROM THE MOST RECENT TRADE NO SELLERS HAD EMERGED AT THAT PRICE PUBLISHER JOHN JOHNSON AND RECORDING EXECUTIVE BERRY GORDY BOTH APPEARED ON FORBES MAGAZINE'S LIST OF THE 400 RICHEST AMERICANS IN THE MID1980S AN ARTICLE JAN 19 INCORRECTLY STATED THAT THE LATE REGINALD F LEWIS WAS THE FIRST BLACK AMERICAN TO APPEAR ON THE FORBES LIST 9302090161 930209 INTERNATIONAL FRANCE WIDENS FIGHT AGAINST HOOVER PLAN TO SHIFT JOBS TO UK A WALL STREET JOURNAL NEWS ROUNDUP THE FRENCH GOVERNMENT BROADENING ITS BATTLE AGAINST THE TRANSFER OF HUNDREDS OF JOBS TO SCOTLAND FROM A HOOVER VACUUM CLEANER FACTORY FILED A COMPLAINT IN A COURT IN DIJON FRANCE CLAIMING THE MOVE VIOLATED FRENCH LABOR LAWS MEANWHILE THE REGIONAL GOVERNMENT IN BURGUNDY WHERE THE THREATENED HOOVER PLANT IS LOCATED HIRED THE US LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM TO ASSIST IT IN ANY NEGOTIATIONS OR LITIGATION RELATING TO THE HOOVER MOVE WITH FRENCH UNEMPLOYMENT APPROACHING 11 THE BELEAGUERED SOCIALIST GOVERNMENT WHICH FACES ELECTIONS IN SIX WEEKS IS PULLING OUT ALL THE STOPS IN THE HOOVER CASE EVEN IF IT CAN'T BLOCK THE MOVE THE GOVERNMENT WANTS TO AVOID BEING ACCUSED OF NOT PUTTING UP A FIGHT TO SAVE FRENCH JOBS A FRENCH GOVERNMENT COMPLAINT HAS ALREADY BEEN FILED WITH THE EUROPEAN COMMUNITY COMMISSION A FRENCH LABOR MINISTRY SPOKESWOMAN SAID THE DIJON COURT CASE ALLEGES THAT HOOVER VIOLATED FRENCH LABOR LAWS BY FAILING TO CALL A MEETING OF THE COMPANY'S WORKERMANAGEMENT COMMITTEE BEFORE ANNOUNCING PLANS TO TRANSFER PRODUCTION WHICH WILL MEAN THE LOSS OF 600 JOBS NEAR DIJON AND THE CREATION OF 400 NEW JOBS NEAR GLASGOW WHERE LABOR COSTS ARE CHEAPER A HOOVER SPOKESWOMAN DECLINED TO COMMENT ON THE COMPLAINT'S SPECIFIC CHARGES BUT SAID THE COMPANY FREQUENTLY AND REGULARLY COMMUNICATES WITH ALL THE WORK FORCES INCLUDING IN DIJON AND HAD INFORMED WORKERS AS EARLY AS LAST JULY THAT A TASK FORCE WAS STUDYING THE POSSIBILITY OF STREAMLINING VACUUM CLEANER PRODUCTION IN EUROPE HOOVER IS A UNIT OF THE MAYTAG CORP OF THE US THE EC COMMISSION PRESIDENT JACQUES DELORS CRITICIZED BRITAIN FOR JOBPOACHING IN THE HOOVER CASE WHILE THE COMPETITION COMMISSIONER KAREL VAN MIERT SAID BRITAIN HAD AN UNFAIR ADVANTAGE AKIN TO PLAYING SOCCER WITH ITS HANDS BRITAIN HAS DECLINED TO SIGN UP FOR THE SOCIAL CHARTER AGREED TO BY OTHER EC COUNTRIES 9302090159 930209 POLITICS & POLICY OTHER CLINTON APPOINTEES APPEAR HURT BY ZOE BAIRD PROBLEMS' OF THEIR OWN BY MICHAEL K FRISBY AND CATHY TROST STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AT LEAST TWO FRONTRUNNERS FOR SUBCABINET POSTS IN THE CLINTON ADMINISTRATION HAVE APPARENTLY BEEN DERAILED BY CONCERNS ABOUT THE SAME FACTORS THAT KEPT ZOE BAIRD AND KIMBA WOOD FROM BECOMING ATTORNEY GENERAL ALL POTENTIAL NOMINEES NOW ARE GETTING CLOSER SCRUTINY ON WHETHER THEY FAILED TO PAY REQUIRED SOCIAL SECURITY TAXES ON DOMESTIC HELP OR HIRED ILLEGAL IMMIGRANTS ONE VICTIM APPEARS TO BE HOUSING ADVOCATE BARRY ZIGAS WHO HAD BEEN THE FRONTRUNNER FOR THE JOB OF ASSISTANT SECRETARY FOR POLICY DEVELOPMENT AND RESEARCH AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PEOPLE CLOSE TO THE HIRING PROCESS SAID THE PERSONNEL OFFICIALS REVIEWING MR ZIGAS'S RECORDS HAD FOUND A PROBLEM INVOLVING SOCIAL SECURITY TAXES FOR A HOUSEHOLD EMPLOYEE MR ZIGAS SAID HE COULD NOT COMMENT ON THE PROCESS HE WOULDN'T DENY THAT HE MAY HAVE A PROBLEM BECAUSE HE DIDN'T PAY THE SOCIAL SECURITY TAXES MR ZIGAS WHO IS PRESIDENT OF THE NATIONAL LOW INCOME HOUSING COALITION WAS OPPOSED BY THE HOMEBUILDERS LOBBY WHILE HUD OFFICIALS ACKNOWLEDGED PRIVATELY THAT MR ZIGAS'S APPOINTMENT WAS IN TROUBLE THEY WOULDN'T CONFIRM THAT HE HAD A PROBLEM WITH HIS HOUSEHOLD HELP AND SAID THEY WERE STILL TALKING WITH HIM TO DETERMINE HOW HE COULD BEST SERVE THE ADMINISTRATION THE HUD OFFICIALS IMPLIED THAT MR ZIGAS WOULDN'T BE GETTING THE ASSISTANT SECRETARY JOB REGARDLESS OF WHETHER HE HAD COMPLIED WITH THE LAW A PERSON FAMILIAR WITH THE BACKGROUND CHECKS ON POTENTIAL ADMINISTRATION APPOINTEES SAID A TOP CANDIDATE TO BECOME SOCIAL SECURITY COMMISSIONER AND ONE OF THE CANDIDATES TO HEAD THE FEDERAL HOUSING ADMINISTRATION ALSO AREN'T LIKELY TO RECEIVE JOB OFFERS BECAUSE OF SIMILAR PROBLEMS WITH TWO CANDIDATES FOR ATTORNEY GENERAL JUDGE WOOD AND MS BAIRD DERAILED BY HIRING ILLEGAL IMMIGRANTS GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID PRESIDENT CLINTON WOULD SOON NAME HIS NEW NOMINEE FOR THE JOB MR CLINTON MAINTAINED THAT JUDGE WOOD WASN'T OFFERED A JOB BY HIM OR ANYONE ELSE AND THAT SHE WAS UNFAIRLY TREATED BECAUSE OF A LEAK FROM INSIDE THE ADMINISTRATION IF I KNEW WHO DID IT THEY WOULDN'T BE HERE HE SAID WORDS TAKEN BY HIS AIDES AS A THREAT TO FIRE LEAKERS MR STEPHANOPOULOS REFUSED TO DISCUSS POTENTIAL CANDIDATES BUT A NEW NAME BEING MENTIONED ON CAPITOL HILL WAS FEDERAL APPEALS COURT JUDGE STEPHEN BREYER OF BOSTON MR STEPHANOPOULOS DID SAY THAT THE WHITE HOUSE COUNSEL'S OFFICE HAD MADE IT CLEAR THAT WE HAVE AN ORGANIZED PROCESS TO MAKE SURE THAT ALL CABINET OFFICIALS AND ALL SENIOR WHITE HOUSE STAFF COMPLY WITH THE LAW QUESTIONS ESCALATED ABOUT WHETHER OTHERS IN THE CABINET HAD FAILED TO PAY SOCIAL SECURITY TAXES FOR DOMESTIC EMPLOYEES AFTER COMMERCE SECRETARY RON BROWN ACKNOWLEDGED IN A TELEVISION INTERVIEW SUNDAY THAT HE HAD PAID SUCH TAXES ON HIS HOUSEKEEPER ONLY AFTER MS BAIRD'S NOMINATION FOCUSED ATTENTION ON THE ISSUE TO COMPARE THIS TO THE ZOE BAIRD CASE IS IRRESPONSIBLE SAID KEVIN SWEENEY A COMMERCE DEPARTMENT SPOKESMAN SHE HIRED AN ILLEGAL ALIEN THEY PAID SOCIAL SECURITY TAXES LATE MY GUESS IS THERE ARE A LOT OF PEOPLE IN GOVERNMENT WHO HAVE PAID THEIR TAXES LATE ON HOUSEHOLD EMPLOYEES THE WALL STREET JOURNAL SURVEYED MEMBERS OF THE CABINET AND THE SENATE JUDICIARY COMMITTEE TO DETERMINE IF THEY OR THEIR SPOUSES HAD EVER EMPLOYED AN ILLEGAL ALIEN EVEN WHEN IT WAS LEGAL TO DO SO OR EVER FAILED TO PAY SOCIAL SECURITY TAXES ON A HOUSEHOLD WORKER WHO EARNED MORE THAN 50 A QUARTER ALL OF THOSE WHO RESPONDED SAID THEY HAD NEVER DONE SO OR HAD NEVER KNOWINGLY DONE SO SOME MEMBERS DIDN'T RESPOND AND OTHERS SAID THEY WERE STILL LOOKING AT THEIR RECORDS A TREASURY SPOKESMAN FOR EXAMPLE SAID THAT SECRETARY LLOYD BENTSEN HAS NEVER KNOWINGLY HIRED AN ILLEGAL ALIEN AND HAS ALWAYS PAID EVERY REQUIRED TAX LABOR SECRETARY ROBERT REICH HAS NEVER EMPLOYED AN ALIEN LEGAL OR ILLEGAL A SPOKESWOMAN SAID ADDING THAT HE AND HIS WIFE WHO HAVE EMPLOYED STUDENT BABY SITTERS FOR THEIR CHILDREN ARE REVIEWING THEIR HOUSEHOLD RECORDS TO ENSURE THEY HAVE COMPLIED WITH THE LAW VETERANS AFFAIRS SECRETARY JESSE BROWN HAS NEVER HIRED AN ILLEGAL ALIEN SAID A SPOKESWOMAN WHO DIDN'T RESPOND TO QUESTIONS ABOUT TAX LAW COMPLIANCE ON HOUSEHOLD WORKERS SEPARATELY THE STATE DEPARTMENT WAS CHECKING LAST NIGHT ON DETAILS CONCERNING EMPLOYEES OF SECRETARY WARREN CHRISTOPHER AND HIS WIFE REPRESENTATIVES OF DEFENSE SECRETARY LES ASPIN NATIONAL SECURITY ADVISER ANTHONY LAKE NATIONAL ECONOMIC COUNCIL CHIEF ROBERT RUBIN AND COUNCIL OF ECONOMIC ADVISERS CHAIRWOMAN LAURA TYSON DIDN'T RESPOND TO QUESTIONS FROM THE JOURNAL ON THE ISSUE ON THE SENATE JUDICIARY COMMITTEE 16 SENATORS RESPONDING TO JOURNAL QUESTIONS SAID THEY HAD NEVER EMPLOYED AN ILLEGAL IMMIGRANT OR FAILED TO COMPLY WITH TAX LAWS ON HOUSEHOLD WORKERS DELAWARE SEN JOSEPH BIDEN THE DEMOCRATIC CHAIRMAN SAID HE HADN'T HIRED AN ILLEGAL ALIEN AND TO MY KNOWLEDGE HAD NEVER FAILED TO PAY TAXES ON HOUSEHOLD WORKERS SEN HERB KOHL D WIS SAID HE HADN'T EMPLOYED AN ILLEGAL IMMIGRANT OR FAILED TO PAY PROPER TAXES ON HOUSEHOLD WORKERS TO THE BEST OF HIS KNOWLEDGE SENS LARRY PRESSLER R SD AND CHARLES GRASSLEY R IOWA DIDN'T RESPOND TO TELEPHONE CALLS IN RESPONSE TO QUESTIONS MR STEPHANOPOULOS SUGGESTED THAT THE TAX LAW COVERING HOUSEHOLD EMPLOYEES IS CERTAINLY SOMETHING THAT NEEDS TO BE LOOKED AT ADDING THAT THE 50AQUARTER THRESHOLD WAS SET IN 1954 THAT'S AN AWFUL LONG TIME AGO HE SAID IF YOU HAVE A BABY SITTER ONCE EVERY THREE WEEKS AND HIRE YOUR NEXT DOOR NEIGHBOR TO MOW YOUR LAWN TECHNICALLY YOU SHOULD BE PAYING SOCIAL SECURITY TAXES HE ALSO SAID THAT PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE HAVE COMPLIED WITH TAX LAWS ON HOUSEHOLD EMPLOYEES 9302090158 930209 TOP TAX RATE FOR BUSINESSES MAY BE RAISED CLINTON MULLS BOOST IN LINE WITH TOP LEVEL OF 36 PROPOSED FOR INDIVIDUALS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS LEANING TOWARD PROPOSING AN INCREASE IN THE TOP CORPORATE TAX RATE TO 36 FROM THE CURRENT 34 BOTH TO RAISE MONEY AND TO DEMONSTRATE ITS DETERMINATION TO TAX BIG BUSINESS AND WEALTHY INDIVIDUALS BEFORE TURNING TO THE MIDDLE CLASS SUCH AN INCREASE WOULD BRING THE TOP CORPORATE MARGINAL TAX RATE TO THE SAME 36 LEVEL TO WHICH THE ADMINISTRATION WANTS TO RAISE THE TOP STATUTORY MARGINAL TAX RATE FOR INDIVIDUALS NOW AT 31 IF YOU RAISE THE TOP INDIVIDUAL RATE IT WOULD MAKE SENSE IN CERTAIN CIRCUMSTANCES TO RAISE THE CORPORATE RATE AS WELL SO YOU DON'T HAVE A DIFFERENTIAL THE PRESIDENT'S COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID A TWOPERCENTAGEPOINT INCREASE IN THE CORPORATE TAX RATE WOULD RAISE FEDERAL RECEIPTS BY ROUGHLY 6 BILLION A YEAR BUT THE ADMINISTRATION IS ALSO PLANNING SOME MOVES ON OTHER CORPORATE TAXES THAT WOULD COST THE GOVERNMENT MONEY MR CLINTON IS LIKELY TO PROPOSE EASING THE CORPORATE ALTERNATIVE MINIMUM TAX WHICH AFFECTS INCREASING NUMBERS OF BIG CAPITALINTENSIVE COMPANIES ADMINISTRATION OFFICIALS SAID HE ALSO IS EXPECTED TO REINSTITUTE THE INVESTMENT TAX CREDIT AND EXTEND AND PERHAPS ENLARGE THE RESEARCHANDDEVELOPMENT TAX CREDIT THE PRESIDENT IS TO UNVEIL HIS ECONOMIC PLAN IN A SPEECH TO CONGRESS ON FEB 17 TOP CLINTON ADMINISTRATION OFFICIALS HAVE TOLD CONGRESSIONAL LEADERS THAT THE PLAN IS LIKELY TO CALL FOR A BROAD TAX ON ENERGY OF SOME SORT MR STEPHANOPOULOS CONFIRMED THAT THE ADMINISTRATION HAS BACKED AWAY FROM PROPOSALS TO LIMIT THE COSTOFLIVING ADJUSTMENTS TO SOCIAL SECURITY AND GOVERNMENT EMPLOYEE PENSIONS IT'S VERY UNLIKELY IT'S SOMETHING THE PRESIDENT WANTS TO DO HE SAID ALTHOUGH THE ADMINISTRATION IS HOPING TO RUSH ITS ECONOMICSTIMULUS PACKAGE THROUGH CONGRESS ADMINISTRATION OFFICIALS AND DEMOCRATIC LEADERS IN CONGRESS SAY THAT THE REST OF THE PACKAGE INCLUDING THE TAX PROVISIONS WILL TAKE FAR MORE TIME AND PROBABLY WON'T BE ENACTED UNTIL JUST BEFORE THE CONGRESSIONAL AUGUST RECESS IF THEN AFTER A TELEVISED TOWN MEETING IN DETROIT TOMORROW MR CLINTON PLANS TO BEGIN MEETINGS ON THURSDAY WITH SMALL GROUPS OF HOUSE DEMOCRATS TO BUILD SUPPORT FOR HIS PACKAGE DURING THE ELECTION CAMPAIGN MR CLINTON TALKED ABOUT RAISING MONEY BY ELIMINATING SOME CORPORATE TAX BREAKS BUT THE LIKELY MOVE TO RAISE THE CORPORATE TAX RATE REPRESENTS A CHANGE IN HIS POSITION IN AN INTERVIEW WITH THE WALL STREET JOURNAL DEC 16 MR CLINTON SAID HE WANTED TO CONFINE TAX INCREASES TO INDIVIDUALS TO LEAVE AS MUCH MONEY IN THE CORPORATE SECTOR AS I COULD FOR REINVESTMENT IN THE ECONOMY ADMINISTRATION OFFICIALS STUNG BY PUBLIC REACTION TO REPORTS OF POSSIBLE LIMITS ON SOCIAL SECURITY COSTOFLIVING ADJUSTMENTS AND OF NEW ENERGY TAXES ARE NOW ENCOURAGING STORIES THAT ILLUSTRATE MR CLINTON'S DETERMINATION TO HIT THE RICH AND BIG BUSINESS BEFORE ASKING THE MIDDLE CLASS TO PAY HIGHER TAXES WHILE MOST AMERICANS PAID HIGHER TAXES ON LOWER REAL INCOMES THE PRIVILEGED FEW PAID LOWER TAXES ON MUCH HIGHER REAL INCOMES MR CLINTON SAID IN A RADIO ADDRESS DURING THE WEEKEND WE'RE GOING TO ASK THEM NOW TO PAY THEIR FAIR SHARE ALONG WITH CORPORATIONS WHOSE TAX BURDEN HAS BEEN DRAMATICALLY REDUCED IN THE LAST 12 YEARS ACCORDING TO ESTIMATES BY THE FORMER BUSH ADMINISTRATION THE FEDERAL GOVERNMENT IS PROJECTED TO COLLECT 1055 BILLION IN CORPORATE INCOME TAXES THIS YEAR ABOUT 92 OF ALL FEDERAL RECEIPTS IN 1980 CORPORATE TAXES REPRESENTED 125 OF FEDERAL RECEIPTS COMPANIES WITH TAXABLE INCOME BELOW 75000 A YEAR AREN'T AFFECTED BY THE TOP CORPORATE TAX RATE IN FACT ONLY 10 OF ALL COMPANIES WOULD PAY MORE UNDER THE EXPECTED CLINTON PROPOSAL BUT THEY EARN ABOUT 90 OF ALL CORPORATE PROFITS MANY OF THOSE COMPANIES ARE EXPECTED TO FIGHT ANY INCREASE IN CORPORATE TAX RATES EVEN IF THE INCREASES ARE ACCOMPANIED BY TAX INCENTIVES THEY PREFER THE GRAND COMPROMISE OF THE 1986 TAX REFORM ACT THAT LOWERED TAX RATES AND DID AWAY WITH LOOPHOLES AND VARIOUS INCENTIVES JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS PREDICTED YESTERDAY THAT IT WOULD BRING A BROAD COALITION OF BUSINESS OUT OF THE WOODWORK AGAINST IT THE CHAIRMEN OF THE CONGRESSIONAL TAXWRITING COMMITTEES SEN DANIEL PATRICK MOYNIHAN D NY AND REP DAN ROSTENKOWSKI D ILL HADN'T ANY IMMEDIATE REACTION TO RAISING THE CORPORATE TAX RATE BUT SEN DAVID PRYOR D ARK A CLINTON ALLY AND A FINANCE COMMITTEE MEMBER PREDICTED THAT SUCH A PROPOSAL COULD ENCOUNTER DIFFICULTY IN THE SENATE BECAUSE IT MIGHT BE SEEN AS INTERFERING WITH THE WIDELY SHARED GOAL OF CREATING NEW JOBS CLINTON ADMINISTRATION OFFICIALS POINT OUT THAT RAISING THE PERSONAL TAX RATE WITHOUT MOVING THE CORPORATE TAX RATE COULD PROVIDE A WAY FOR THE WEALTHY TO AVOID THE PERSONAL TAX INCREASES IF THE CORPORATE TAX RATE WERE LOWER A BUSINESS OWNER OR PROFESSIONAL MIGHT SWITCH FROM A PARTNERSHIP TO THE CORPORATE FORM BUT SOME PRIVATE AND CONGRESSIONAL TAX EXPERTS SAY THE POTENTIAL FOR SUCH MOVES ISN'T SIGNIFICANT THE CORPORATE ALTERNATIVE MINIMUM TAX WAS CREATED IN 1986 TO MAKE SURE THAT ALL COMPANIES PAY SOME INCOME TAXES NO MATTER HOW MANY DEDUCTIONS OR TAX CREDITS THEY ARE ENTITLED TO FOR A VARIETY OF REASONS MORE AND MORE COMPANIES ARE SUBJECT TO THIS TAX PARTICULARLY CAPITALINTENSIVE FIRMS THE CLINTON ADMINISTRATION IS EXPECTED TO PROPOSE AMONG OTHER THINGS SIMPLIFYING THE TAX BY ELIMINATING WHAT'S KNOWN AS THE ADJUSTED CURRENT EARNINGS PROVISION THE BUSH ADMINISTRATION MADE A SIMILAR PROPOSAL AND CONGRESS ADOPTED IT BUT PRESIDENT BUSH VETOED THE BILL FOR OTHER REASONS MR CLINTON IS HOWEVER CONSIDERING AN INCREASE IN THE ALTERNATIVE MINIMUM TAX RATE PAID BY CERTAIN WEALTHY INDIVIDUALS JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9302090157 930209 BUSH INDUSTRIES EXPECTS NET GAIN JAMESTOWN NY BUSH INDUSTRIES INC CITING LOWER COSTS SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER NET INCOME ROSE 95 TO 115 MILLION OR 25 CENTS A SHARE FROM 105 MILLION OR 23 CENTS A SHARE THE FURNITURE CONCERN SAID SALES ROSE 35 TO 382 MILLION FROM 369 MILLION 9302090156 930209 INTERNATIONAL SPANISH ECONOMIC GROWTH MADRID THE SPANISH ECONOMY GREW BY A MODEST 05 DURING THE FOURTH QUARTER OF 1992 BRINGING THE AVERAGE ANNUAL GROWTH RATE FOR THE YEAR TO APPROXIMATELY 1 THE BANK OF SPAIN SAID THE PROVISIONAL FOURTHQUARTER FIGURES COMPARE WITH GROWTH OF 1 DURING THE THIRD QUARTER AND 15 DURING THE SECOND QUARTER THE CENTRAL BANK SAID THE SPANISH ECONOMY'S SLUGGISH PERFORMANCE IN 1992 WAS STRONGLY INFLUENCED BY THE GLOBAL ECONOMIC SLOWDOWN AND A CRISIS WITHIN THE EUROPEAN MONETARY SYSTEM THE BANK SAID 9302090155 930209 GOLDTEX PLANS TO BE ACQUIRED GOLDSBORO NC GOLDTEX INC SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO BE ACQUIRED BY TOMEN AMERICA INC THE US DIVISION OF TOKYO TRADING COMPANY TOMEN CORP IN A TRANSACTION VALUED AT 20 MILLION TOMEN WOULD PAY 675 A SHARE FOR GOLDTEX WHICH PRINTS DYES AND FINISHES FABRIC AND MARKETS APPAREL FOR A TOTAL OF ABOUT 165 MILLION AND WOULD ASSUME THE COMPANY'S 35 MILLION IN DEBT WILBUR O HOPPER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GOLDTEX SAID MR HOPPER AND ROBERT ZUCKER EXECUTIVE VICE PRESIDENT WILL REMAIN WITH GOLDTEX AFTER THE ACQUISITION WHICH IS EXPECTED IN MAY THE COMPANY SAID 9302090154 930209 LETTERS TO THE EDITOR WORKERS ARE RIGHT TO FEAR NAFTA MARSHALL J BREGER IN HIS NAFTA CRITICS HAVE IT ALL WRONG ON MEXICAN LABOR LAW AMERICAS OPED PAGE JAN 15 SUGGESTS THAT IF MEXICAN LABOR LAW IS FLAWED IT'S BECAUSE IT GIVES WORKERS TOO MANY RIGHTS MR BREGER ARGUES THAT MEXICO'S LABOR LAWS ARE NOT ENFORCED AS CREATIVE RESPONSES TO A SYSTEM CHOKED BY LAWS AND REGULATIONS ON THE POINT OF NONENFORCEMENT HE IS CERTAINLY CORRECT ACTING IN CONCERT WITH MEXICAN AND MULTINATIONAL CORPORATIONS MEXICO'S GOVERNMENT USES LAX ENFORCEMENT OF LABOR LAWS TO MAINTAIN THE REPRESSED LOWWAGE WORK FORCE CENTRAL TO ITS APPEAL TO OUTSIDE INVESTMENT FOR INSTANCE ALTHOUGH THE RIGHT TO STRIKE IS PROTECTED IN MEXICO IN PRACTICE STRIKES ARE RARE OCCURRENCES UNDER MEXICAN LAW STRIKES REQUIRE GOVERNMENT APPROVAL ACCORDING TO THE US LABOR DEPARTMENT MEXICAN UNIONS FILED MORE THAN 7000 NOTICES OF THEIR INTENT TO STRIKE IN 1991 BUT ONLY 136 WERE APPROVED BY MEXICO'S FEDERAL ARBITRATION AND CONCILIATION BOARD IT GETS WORSE WHEN SOME UNION WORKERS WON SIGNIFICANT GAINS IN APPROVED STRIKES IN MATAMOROS LAST YEAR THEIR LEADER AGAPITO GONZALES WAS SUDDENLY ARRESTED ON LONGSTANDING CHARGES AND FLOWN TO MEXICO CITY WHERE HE REMAINED UNDER HOUSE ARREST FOR NEARLY NINE MONTHS WITH MR GONZALES OUT OF THE PICTURE THOSE STILL ON STRIKE WERE FORCED TO RETREAT SETTLING ON TERMS MORE FAVORABLE TO THE MAQUILADORA EMPLOYERS EMPLOYERS IN MEXICO ALSO BENEFIT FROM NONENFORCEMENT OF LABOR LAWS DESIGNED TO PREVENT THE EXPLOITATION OF CHILDREN AS YOUR PUBLICATION HAS REPORTED WORKING CHILDREN UNDERAGE LABORERS FILL MEXICAN FACTORIES WALL STREET JOURNAL APRIL 8 1991 THE NOT SURPRISING RESULT OF ALL THIS IS THAT AS INVESTMENT IN MEXICO BY US CORPORATIONS HAS INCREASED SO TOO HAS THE PRESSURE ON WORKERS AND THEIR UNIONS IN BOTH COUNTRIES TO ACCEPT A LOWER STANDARD OF LIVING THE UNITED AUTO WORKERS ALONG WITH MANY OTHERS BELIEVES THAT IMPROVED ENFORCEMENT OF MEXICAN WORKERS' RIGHTS IS A PROPER CONCERN OF ANY MULTILATERAL TRADE AGREEMENT INVOLVING MEXICO THE EUROPEAN COMMUNITY FOR EXAMPLE IN CONTRAST TO NAFTA REQUIRED PORTUGAL AND SPAIN TO MAKE CONCRETE SOCIAL AND POLITICAL IMPROVEMENTS IN ORDER TO GAIN ADMISSION TO THE EC IN THE FINAL ANALYSIS ONE THING IS CERTAIN IN THE ABSENCE OF EFFECTIVE LABOR RIGHTS ENFORCEMENT US WORKERS HAVE EVERY RIGHT TO FEAR THE WORST FROM NAFTA AND MEXICAN WORKERS HAVE NO REASON TO HOPE FOR THE BETTER TOMORROW THEY'VE BEEN PROMISED 9302090153 930209 FORD IS RECALLING PROBE GT CARS DETROIT FORD MOTOR CO SAID IT IS RECALLING 2900 PROBE GT CARS EQUIPPED WITH 22 LITER ENGINES AND BUILT FOR SALE IN CALIFORNIA TO REPLACE FAULTY EMISSION SENSORS THE RECALL INCLUDES 1990 THROUGH 1992 MODEL YEAR PROBES FORD SAID A MALFUNCTION IN THE EXHAUST GAS RECIRCULATION VALVE MAY CAUSE THE SENSOR TO FALSELY INDICATE THAT AN EMISSIONS REPAIR IS NECESSARY SEPARATELY THE AUTO MAKER SAID IT IS RECALLING 190 1992 MODEL YEAR F B AND LSERIES TRUCK AND BUS CHASSIS EQUIPPED WITH CAST SPOKE WHEELS TO REPLACE THE FRONT WHEEL RIM CLAMPS FORD SAID THE CLAMPS THAT HOLD THE TIRE AND RIM ASSEMBLY TO THE FRONT WHEEL SPOKES MAY BE AN INCORRECT SIZE WHICH MAY CAUSE THE STUDS ATTACHING THE CLAMPS TO THE SPOKES TO BEND AND FRACTURE ABOUT 39 OF THESE VEHICLES ARE REGISTERED IN CANADA ALL REPAIRS WILL BE MADE AT NO COST TO THE VEHICLE OWNERS 9302090152 930209 INTERNATIONAL SPANISH NEW CAR SALES DROP 53 MADRID SPANISH NEW CAR SALES PLUMMETED 53 IN JANUARY FROM A YEAR AGO SAID ANFAC THE SPANISH ASSOCIATION OF CAR MAKERS ANFAC SAID 40360 NEW CARS WERE SOLD IN THE LATEST MONTH DOWN FROM 85448 ANFAC CALLED THE FALL BRUTAL AND WARNED CAR MAKERS WILL BE FORCED TO LAY OFF 45000 WORKERS IF THE TREND CONTINUES 9302090151 930209 MARGARETTEN FINANCIAL MORTGAGES PERTH AMBOY NJ MARGARETTEN FINANCIAL CORP SAID MORTGAGE APPLICATIONS FELL 60 IN JANUARY FROM A YEAR AGO WHEN VOLUME WAS UNUSUALLY HEAVY BECAUSE OF LOW INTEREST RATES LOAN VOLUME LAST MONTH WAS 562 MILLION DOWN FROM ABOUT 14 BILLION IN JANUARY 1992 MARGARETTEN A RESIDENTIAL MORTGAGE BANKER SAID IT EXPECTS LOAN APPLICATIONS TO REMAIN STEADY THROUGHOUT 1993 AND NOTED THAT JANUARY'S LOAN APPLICATIONS WERE UP FROM 425 MILLION IN DECEMBER 1992 MARGARETTEN ALSO SAID ITS RETAIL LOAN CLOSINGS AND WHOLESALE AND CORRESPONDENT MORTGAGE PURCHASES IN JANUARY ROSE 32 TO 643 MILLION FROM 487 MILLION IN JANUARY 1992 9302090150 930209 INTERNATIONAL ANSALDO UNIT GETS CONTRACT GENOA ITALY ANSALDO SPA SAID ITS POWERGENERATION SUBSIDIARY GOT A CONTRACT VALUED AT 193 BILLION LIRE 127 MILLION TO HELP BUILD A HYDROELECTRIC PLANT IN DAULE PERIPA ECUADOR ANSALDO IS A UNIT OF FINMECCANICA GROUP WHICH ITSELF IS A UNIT OF ITALY'S STATECONTROLLED CONGLOMERATE ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE ROME THE CONTRACT IS FOR A SUPPLY OF TURBINES GENERATORS AND TRANSFORMERS 9302090148 930209 CONTINUUM GETS CONTRACT AUSTIN TEXAS CONTINUUM CO SAID IT WAS AWARDED A THREEYEAR 11 MILLION CONTRACT FOR INTEGRATING COMPUTER SYSTEMS AT TWO LIFE INSURANCE COMPANIES TO BE CONSOLIDATED INTO A SINGLE UNIT BY ALLIANZ AG OF MUNICH GERMANY THE CONTRACT CALLS FOR CONTINUUM A COMPUTER SERVICES FIRM SPECIALIZING IN THE INSURANCE INDUSTRY TO CONSOLIDATE THE POLICIES ADMINISTERED BY FIDELITY UNION LIFE INSURANCE CO OF DALLAS AND NORTH AMERICAN LIFE & CASUALTY CO OF MINNEAPOLIS INTO A SINGLE SYSTEM THE CONSOLIDATED INSURER WILL BE CALLED ALLIANZ LIFE INSURANCE CO OF NORTH AMERICA AND WILL BE BASED IN MINNESOTA CONTINUUM SAID 9302090147 930209 PNC FINANCIAL CHANGES NAME PITTSBURGH PNC FINANCIAL CORP CHANGED ITS NAME TO PNC BANK CORP AND WILL CHANGE THE NAMES OF ITS VARIOUS SUBSIDIARIES TO PNC BANK THE NAME CHANGE WAS THE SECOND IN 10 YEARS 9302090146 930209 INTERNATIONAL AIR FRANCE PACT TO CUT COSTS PARIS AIR FRANCE THE UNPROFITABLE FRENCH FLAG CARRIER SAID IT REACHED AN AGREEMENT WITH ITS FLIGHT CREWS THAT WILL REDUCE OPERATING COSTS BY 260 MILLION FRANCS 464 MILLION IN 1993 AND BY 400 MILLION FRANCS IN YEARS THEREAFTER THE AIRLINE WOULDN'T SAY FROM WHAT LEVEL THE COSTS WOULD BE REDUCED THE AGREEMENT IS PART OF AIR FRANCE'S PROGRAM TO RETURN TO PROFITABILITY AND IS INTENDED TO HELP IMPROVE CASH FLOW BY THREE BILLION FRANCS A YEAR AIR FRANCE EXPECTS TO SHOW A 32 BILLION FRANC CONSOLIDATED LOSS IN 1992 AND EXPECTS TO BE IN THE RED IN 1993 AS WELL THOUGH THE COMPANY BELIEVES IT WILL HALVE LOSSES FROM LAST YEAR'S LEVEL 9302090145 930209 BALDOR REPORTS 57 RISE IN PROFIT FORT SMITH ARK BALDOR ELECTRIC CO SAID FOURTHQUARTER NET INCOME JUMPED 57 CITING NEW PRODUCTS COMBINING DESIGN AND MARKETING INNOVATIONS THE MAKER OF ELECTRIC MOTORS EARNED 41 MILLION OR 27 CENTS A SHARE UP FROM 26 MILLION OR 17 CENTS A SHARE A YEAR EARLIER SALES ROSE 20 TO 855 MILLION FROM 713 MILLION FOR THE YEAR THE COMPANY POSTED EARNINGS OF 153 MILLION OR 1 A SHARE UP 28 FROM 119 MILLION OR 80 CENTS A SHARE IN 1991 SALES ROSE 11 TO 3189 MILLION FROM 2865 MILLION 9302090144 930209 ETHYL UNIT COMPLETES PURCHASE RICHMOND VA ETHYL CORP SAID ITS SUBSIDIARY ETHYL FRANCE SARL COMPLETED THE ACQUISITION OF A UNIT OF RHONEPOULENC SA FOR MORE THAN 100 MILLION THE ACQUIRED UNIT POTASSE ET PRODUITS CHIMIQUES PRODUCES ORGANIC AND INORGANIC BROMINATED COMPOUNDS USED MAINLY AS PHARMACEUTICAL PHOTOGRAPHIC AND AGROCHEMICAL INTERMEDIARIES THE UNIT HAD SALES OF OVER 100 MILLION IN 1992 ETHYL SAID RHONEPOULENC IS A FRENCH CHEMICAL AND PHARMACEUTICAL CONCERN 9302090143 930209 DIVIDEND NEWS BANCTEC INC BANCTEC INC DALLAS SAID ITS BOARD AUTHORIZED A 3FOR2 STOCK SPLIT PAYABLE MARCH 11 TO STOCK OF RECORD FEB 18 THE SPLIT BY THE BANKING EQUIPMENT CONCERN WILL INCREASE COMMON SHARES OUTSTANDING TO 104 MILLION 9302090142 930209 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED FEB 5 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 TRIBOROUGH BRIDGE & TUNNEL AUTHORITY WILL REDEEM ON MARCH 1 1993 ITS GENERAL PURPOSE REVENUE BONDS SERIES A AND C DUE JAN 1 1995 AND 2013 RESPECTIVELY MORGAN GUARANTY TRUST CO OF NEW YORK IS TRUSTEE WYOMING MUNICIPAL POWER AGENCY WILL REDEEM ON MARCH 11 1993 ITS POWER SUPPLY SYSTEM REVENUE BONDS 1978 SERIES A DUE JAN 1 OF THE INDICATED YEAR 63 DUE 1994 64 DUE 1995 65 DUE 1996 66 DUE 1997 AND 1998 AND 7 DUE 2016 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSN WILL REDEEM THE FOLLOWING MEDIUMTERM NOTE ISSUES ON MARCH 8 1993 ITS 855 NOTES DUE MARCH 7 2001 ON MARCH 10 1993 ITS 6 NOTES DUE MARCH 10 1995 AND ON MARCH 12 1993 ITS 805 NOTES DUE MARCH 12 2002 9302090141 930209 INTERNATIONAL FORMER NICARAGUAN OFFICIAL IS UNLIKELY TROPHY IN TUG OF WAR BETWEEN JESSE HELMS MANAGUA BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL COCHABAMBA BOLIVIA NICARAGUA'S GOVERNMENT AND US SEN JESSE HELMS ARE IN AN INTERNATIONAL TUG OF WAR THE UNLIKELY PRIZE A 300POUND FORMER NICARAGUAN OFFICIAL WHO CHAINSMOKES AND WOLFS DOWN FRENCH FRIES DESPITE A HEART CONDITION AND WHOSE SWEEPING AND SOMETIMES BIZARRE ALLEGATIONS OF OFFICIAL CORRUPTION POLITICAL ASSASSINATIONS AND DRUG TRAFFICKING COULD CAUSE A STIR IN MANAGUA AND WASHINGTON THE NICARAGUAN GOVERNMENT LAST YEAR ACCUSED THE FORMER OFFICIAL ANTONIO IBARRA 43 YEARS OLD OF EMBEZZLING 1 MILLION IN FOREIGNAID MONEY THAT ALLEGEDLY WAS THEN USED IN PART TO BRIBE NICARAGUAN CONGRESSMEN ON CRUCIAL VOTES MANAGUA FLATLY DENIES ALL OF MR IBARRA'S ALLEGATIONS AND WANTS TO EXTRADITE HIM FROM BOLIVIA AND TRY HIM IN NICARAGUA BUT MR IBARRA WHO HAS BEEN TEACHING SOCIAL SCIENCES AT TWO UNIVERSITIES IN COCHABAMBA A CITY IN CENTRAL BOLIVIA HAS BEEN FIGHTING EXTRADITION CONTENDING THAT NICARAGUAN OFFICIALS ARE OUT TO LIQUIDATE HIM BECAUSE HE KNOWS TOO MUCH MR IBARRA MADE THE CHARGES LAST WEEK FROM A HOSPITAL IN COCHABAMBA WHERE HE IS IN PREVENTIVE DETENTION AFTER SUFFERING FROM CHEST PAINS HE IS IN DETENTION BECAUSE BOLIVIAN COURTS ARE STILL DECIDING ON THE NICARAGUAN REQUEST FOR EXTRADITION MY LIFE IS NOW IN DANGER SAYS MR IBARRA RECLINING ON A PILE OF PILLOWS SWADDLED IN BLUE HOSPITAL ROBES AS HE SMOKES ONE MARLBORO CIGARETTE AFTER ANOTHER AS US DIPLOMATS CONFER WITH HIM IN HIS HOSPITAL ROOM A HALF DOZEN BOLIVIAN POLICEMEN KEEP 24HOUR GUARD IN THE HALL THAT'S WHY I HAVE TO GET OUT OF THIS COUNTRY AS QUICKLY AS POSSIBLE HE SAYS SEN HELMS A CONSERVATIVE REPUBLICAN FROM NORTH CAROLINA AGREES HE AND OTHER US CONSERVATIVES BELIEVE THAT THE NICARAGUAN GOVERNMENT PRESIDED OVER BY NEWSPAPER PUBLISHER VIOLETA CHAMORRO BUT RUN BY HER SONINLAW AND CHIEF OF STAFF ANTONIO LACAYO HAS ALLOWED THE PROMARXIST SANDINISTAS TO RETAIN CONTROL SINCE MRS CHAMORRO OUSTED THEM IN A 1990 ELECTION SEN HELMS WANTS MR IBARRA A US CITIZEN IN WASHINGTON WHERE HIS TESTIMONY ON EVERYTHING FROM ALLEGED MANAGUA GOVERNMENT INVOLVEMENT IN DRUG TRAFFICKING TO POLITICAL ASSASSINATION COULD BE USEFUL TO THE SENATOR'S CAMPAIGN TO CUT OFF AID TO THE CHAMORRO GOVERNMENT TO BE SURE MEMBERS OF SEN HELMS'S STAFF WHO ARE CHAMPIONING MR IBARRA'S CAUSE HAVE NO ILLUSIONS ABOUT THEIR MAN'S CHARACTER WE KNOW THAT IBARRA WAS INVOLVED IN POLITICAL CORRUPTION AND WE KNOW THAT LACAYO WAS INVOLVED SAYS DEBORAH DE MOSS A HELMS AIDE ON THE SENATE FOREIGN AFFAIRS COMMITTEE ONE HAS TO USE WITNESSES WHO AREN'T SAINTS WHY IS MR IBARRA SPEAKING OUT NOW FIDDLING WITH A FLYSWATTER MR IBARRA SAYS HE ONCE HAD AN AGREEMENT WITH MR LACAYO IN EXCHANGE FOR HIS SILENCE MR IBARRA SAYS MR LACAYO PROMISED HE WOULD LEAVE MR IBARRA ALONE HE LET ME KNOW VERY CLEARLY THAT IF I OPENED MY MOUTH MY LIFE WOULD MEAN NOTHING SAYS MR IBARRA BUT BECAUSE NICARAGUA IS TRYING TO EXTRADITE HIM FROM BOLIVIA HE SAYS HE CONSIDERS THE AGREEMENT VOID IN MANAGUA PRESIDENTIAL SPOKESMAN DANILO LACAYO WHO ISN'T RELATED TO ANTONIO LACAYO SAYS FLATLY THAT MR IBARRA IS LYING ALL HE HAS SAID IN DIFFERENT STATEMENTS IS UNTRUE THEY ARE ONLY ATTEMPTS TO DENY HIS CULPABILITY FOR THE EMBEZZLEMENT OF FUNDS OF WHICH HE IS RESPONSIBLE SAYS MR LACAYO NICARAGUA WILL PRESS FOR MR IBARRA'S EXTRADITION REGARDLESS OF HIS ACCUSATIONS SAYS MR LACAYO WHATEVER HE HAS TO SAY HE SHOULD SAY IN NICARAGUA FOR A WHILE MR IBARRA'S ESCAPE FROM BOLIVIA LOOKED LIKE A DONE DEAL SPURRED BY SEN HELMS'S AIDES US DIPLOMATS HERE WERE AN HOUR AWAY FROM FLYING MR IBARRA TO MIAMI BUT THAT AGREEMENT COLLAPSED THEN LAST THURSDAY A BOLIVIAN COURT REFUSED TO DISMISS THE NICARAGUAN EXTRADITION REQUEST IT WILL NOW BE DECIDED BY THE BOLIVIAN SUPREME COURT A PROCESS THAT COULD TAKE MONTHS MEANWHILE MR IBARRA'S STUDENTS CONTINUE TO DROP BY HIS HOSPITAL ROOM LEAVING TERM PAPERS FOR HIM TO GRADE ON THE PHONE WITH MANAGUA RADIO STATIONS MR IBARRA PAINTS A PORTRAIT OF ANTONIO LACAYO AS A HOTTEMPERED ARROGANT MAN WHO IS WILLING TO RESORT TO VIOLENCE IF CHALLENGED FOR INSTANCE HE ALLEGES THAT IN 1990 MR LACAYO ORDERED A RELUCTANT LOCAL POLICE CHIEF TO FIRE INTO A PEACEFUL CROWD OF PROTESTERS IN THE TOWN OF YOLAINA TWENTYNINE PEOPLE WERE KILLED SAYS MR IBARRA WHO SAYS HE CONDUCTED AN INVESTIGATION MR IBARRA QUOTES MR LACAYO AS SAYING THE DISTURBANCES HAD TO BE STOPPED COLD BEFORE THEY SPREAD THROUGHOUT THE COUNTRY A WESTERN DIPLOMAT VERSED IN NICARAGUA'S HUMAN RIGHTS SITUATION SAYS AN INCIDENT DID OCCUR IN YOLAINA BUT ONLY FOUR OR FIVE PEOPLE WERE KILLED INDEED IT IS DIFFICULT TO DETERMINE THE TRUTH OF MR IBARRA'S ALLEGATIONS DIPLOMATS AND OTHERS KNOWLEDGEABLE ABOUT THE COUNTRY SAY MR IBARRA FUSES FACTWITH FANTASY AT ANY RATE MR IBARRA A SKILLED POLITICAL OPERATOR DID OCCUPY A KEY POSITION AS MR LACAYO'S CHIEF AIDE AMONG OTHER ALLEGATIONS MR IBARRA ALSO ACCUSES MR LACAYO OF PLOTTING TO HAVE ARISTIDES SANCHEZ A PROMINENT CONTRA LEADER ARRESTED ON TRUMPEDUP CHARGES SO THAT THE CONTRA LEADER WHO HAS A HEART CONDITION WOULD SUCCUMB TO THE BAD TREATMENT IN PRISON MR SANCHEZ WAS SEIZED IN NOVEMBER OF 1990 AND ACCORDING TO A REPORT BY THE SENATE FOREIGN RELATIONS COMMITTEE WAS DRUGGED AND PSYCHOLOGICALLY AND PHYSICALLY MISTREATED HE WAS RELEASED A WEEK LATER AND UNDERWENT HEART SURGERY IN MIAMI SHORTLY AFTER MR IBARRA ALSO BELIEVES THAT MR LACAYO MAY HAVE BEEN INVOLVED IN THE MURDER OF ENRIQUE BERMUDEZ A LEADER OF THE USSUPPORTED ANTISANDINISTA GUERRILLAS WHO WAS GUNNED DOWN IN THE PARKING LOT OF MANAGUA'S INTERCONTINENTAL HOTEL IN FEBRUARY 1991 MR IBARRA ALLEGES THAT MR LACAYO TOLD HIM HE HAD SUSPENDED THE STATE SECURITY SERVICE'S 24HOUR SURVEILLANCE ON MR BERMUDEZ A HALF HOUR BEFORE THE MURDER WHICH REMAINS UNSOLVED BUT MR IBARRA'S PROFILE OF MR LACAYO AS THE PERSON GIVING THE ORDERS IN SECURITY MATTERS IN NICARAGUA IS AT ODDS WITH THE WIDELY HELD PERCEPTION THAT AT LEAST IN THESE MATTERS MR LACAYO A FORMER JESUIT SEMINARIAN AND USTRAINED ENGINEER AND BUSINESSMAN DEFERS TO THE SANDINISTAS WITH WHOM HE HAS AN INFORMAL ALLIANCE MR IBARRA ALSO CLAIMS IN A SWORN STATEMENT THAT MR LACAYO GETS AS MUCH AS 300000 A WEEK FROM ILLEGAL SOURCES INCLUDING FROM DRUG DEALERS FOR LAUNDERING THEIR MONEY AND FOR ALLOWING DRUG TRANSSHIPMENTS THROUGH NICARAGUA THE MONEY WHICH GOES TO OIL MR LACAYO'S POLITICAL MACHINE IS DELIVERED BY SENIOR MILITARY OFFICERS MR IBARRA ALLEGES IN A SWORN STATEMENT WITNESSED BY A US DIPLOMAT HERE MR IBARRA SAYS MR LACAYO BRIBED CONGRESSMEN NOT ONLY WITH CASH BUT WITH FARMS BUSINESSES TRUCKS CARS AIRCRAFT AND PERMITS THAT ALLOW SMUGGLING AND CONTRABAND MR IBARRA HIMSELF HAS BEEN AT THE CENTER OF A SCANDAL THAT ALSO INVOLVES HIS FORMER BOSS MR LACAYO IN JULY NICARAGUA'S COMPTROLLER GENERAL GUILLERMO POTOY WHO WAS FIRED RECENTLY BY MRS CHAMORRO CHARGED IN A REPORT THAT MR IBARRA DIVERTED 1 MILLION OF FOREIGN AID THE MONEY MR POTOY'S REPORT SAID WENT FOR MR IBARRA'S OWN EXPENSES AS WELL AS TO BUY THE VOTES OF AT LEAST SEVEN CONGRESSMEN ON CRUCIAL ISSUES WHILE HE RECOMMENDED THAT FRAUD CHARGES BE BROUGHT AGAINST MR IBARRA WHO HAD EARLIER BEEN DISMISSED FROM HIS JOB MR POTOY ALSO ACCUSED MR LACAYO OF COVERING UP THE BRIBERY SCHEME AND SAID THERE WAS A PRESUMPTION OF JOINT CRIMINAL LIABILITY IN THE PAST MR LACAYO HAS DENIED THE ALLEGATIONS CALLING THEM THE PRODUCT OF POLITICAL INFIGHTING MRS CHAMORRO HAS STOOD BY HER SONINLAW SAYING SHE WOULD QUIT RATHER THAN FIRE HIM SITTING IN HIS SMOKEFILLED HOSPITAL ROOM MR IBARRA PONDERS HIS FATE MY MAJOR CONCERN IS MY LIFE HE SAYS CALMLY MY LAST LINE OF DEFENSE IS THAT I HAVE DOCUMENTS AND THEY KNOW I HAVE THEM 9302090140 930209 ECONOMY SHORTAGES OF FINISHED RESIDENTIAL LOTS MAY SPELL HIGHER PRICES FOR NEW HOMES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS OF GLUT SHORTAGES OF FINISHED RESIDENTIAL LOTS ARE CROPPING UP AROUND THE COUNTRY IN A WIDENING TREND THAT SOME ANALYSTS SAY WILL HELP BOOST PRICES FOR NEW HOMES ALTHOUGH NOT YET WIDESPREAD THE SHORTAGES PRIMARILY IN THE SOUTHWEST AND NORTHEAST ARE EXPECTED TO SPREAD TO OTHER PARTS OF THE COUNTRY BECAUSE OF A DEARTH IN FINANCING FOR LAND DEVELOPMENT AN ANALYST SAID THIS WILL CONTRIBUTE TO AN ESTIMATED 5 INCREASE IN NEWHOME PRICES THIS YEAR THE BIGGEST JUMP IN FIVE YEARS BANKS AND THRIFTS OPERATING UNDER STRINGENT LENDING REQUIREMENTS ABOUT TWO YEARS AGO PRACTICALLY SHUT DOWN THEIR LOANS FOR DEVELOPING VACANT LOTS WITH SUCH THINGS AS EARTH GRADING AND SEWER AND WATER LINES PREREQUISITES FOR BUILDING OF THE HOME ITSELF WITH FEW NEW LOTS IN THE PIPELINE AND RESURGING NEWHOME SALES GOBBLING UP THE AVAILABLE SUPPLY THE SHORTAGES HAVE BECOME MORE PRONOUNCED IN RECENT MONTHS WHILE THERE ARE NO COMPREHENSIVE DATA TO SHOW THIS A RECENT POLL OF LOCAL BUILDER GROUPS BY THE NATIONAL ASSOCIATION OF HOME BUILDERS FOUND 38 LISTING LOT SHORTAGES AMONG THEIR TOP 20 CONCERNS WHEN THE SAME POLL WAS CONDUCTED FOUR MONTHS AGO THE SHORTAGE ISSUE DIDN'T MAKE THE LIST OF MOST PRESSING CONCERNS THIS MEANS WE WILL SEE SIGNIFICANTLY HIGHER HOME PRICES AS THE PRICE OF LAND GETS BID UP SAID MICHAEL CARLINER AN ECONOMIST FOR THE WASHINGTONBASED BUILDERS' ASSOCIATION MR CARLINER ESTIMATES THAT PRICES ON NEW HOMES ADJUSTED FOR QUALITY AND LOCATION WILL RISE ABOUT 5 THIS YEAR TO AN AVERAGE OF 117700 FROM 112100 IN 1992 THAT WOULD BE THE BIGGEST INCREASE SINCE 1987 WHEN NEWHOME PRICES JUMPED 59 IN THE INDUSTRY'S INTERVENING RECESSIONARY YEARS PRICES HOVERED AT OR BELOW THE RATE OF INFLATION WHILE RISING PRICES OF LUMBER AND MATERIALS WILL ALSO ADD TO THE INCREASES LOT PRICES ARE VITALLY IMPORTANT BECAUSE THE COST OF LAND REPRESENTS ROUGHLY ONEFIFTH THE COST OF A FINISHED HOME LIKE OTHER COSTS BUILDERS GENERALLY PASS ON LOT PRICE INCREASES TO THE BUYER SO THEY CAN PROTECT THEIR MARGIN OF PROFIT DAVID K DWYER HOUSING ANALYST FOR KIDDER PEABODY & CO SAID THE BIG PUBLICLY HELD BUILDERS HAVE ENOUGH LOTS TO TIDE THEM OVER FOR THE YEAR MEANING THEIR PRICES PROBABLY WOULDN'T BE SERIOUSLY AFFECTED FROM THE SHORTAGES UNTIL AT LEAST NEXT YEAR MR DWYER SAID A RESURGENCE IN SALES OF EXISTING HOMES WHICH ARE IN ABUNDANT SUPPLY ALSO OFFERS A BUYING ALTERNATIVE THAT COULD HELP KEEP PRICES FROM RISING QUICKLY PERHAPS THE MOST SERIOUSLY DEPLETED BIG MARKET IS METROPOLITAN DENVER WHICH IS DOWN TO A MINUSCULE FIVEMONTH SUPPLY OF FINISHED LOTS AFTER NEWHOME SALES JUMPED 35 LAST YEAR AMID A REVITALIZED ECONOMY ACCORDING TO THE ROCKY MOUNTAIN RESEARCH INSTITUTE A LOCAL REAL ESTATE CONSULTING FIRM THIS IS CRITICALLY LOW BECAUSE IT CAN TAKE AS LONG AS A YEAR TO GET NECESSARY PERMITS FROM GROWTHRESISTANT LOCAL OFFICIALS TO DEVELOP A VACANT LOT A YEAR AND A HALF AGO BY CONTRAST THE DENVER AREA HAD AS MUCH AS AN 18MONTH SUPPLY OF FINISHED LOTS MANY OF WHICH WERE LEFT OVER FROM COLORADO'S GREAT ENERGY BUST OF THE 1980S THOUGH LOTRELATED PRICE INCREASES HAVEN'T YET SHOWN UP SIGNIFICANTLY IN DENVER'S NEW HOMES WHICH NOW AVERAGE ABOUT 160000 BILL VEIO DIRECTOR OF THE ROCKY MOUNTAIN RESEARCH INSTITUTE SAID HE EXPECTS THE SHORTAGES WILL ADD 3000 IN THE NEXT YEAR TO THE PRICE OF A HOME MR VEIO SAID LOT PRICES THEMSELVES WOULD JUMP AS MUCH AS 15 THIS YEAR EVEN LANDRICH PHOENIX IS STRUGGLING UNDER A SHORTFALL WITH FINISHED LOTS DOWN TO A TIGHT 14MONTH SUPPLY FROM A 20MONTH SUPPLY A YEAR AGO ACCORDING TO THE PHOENIX HOUSING MARKET LETTER A LOCAL MARKET TRACKING FIRM NEWHOME SALES HAVE SURGED 32 OVER THE PAST TWO YEARS SIPHONING OFF A SURPLUS OF LOTS LEFT FROM ARIZONA'S 1980S FRENZY OF THRIFTINDUCED OVERBUILDING AMID THE DEPLETION PRICES ON EVEN THE MOST DISTRESSED LOTS HAVE JUMPED IN THE PAST YEAR TO BETWEEN 20000 AND 21000 FROM 12000 TO 14000 SAID RL BROWN PUBLISHER OF THE PHOENIX NEWSLETTER MR BROWN ADDED THAT THE HIGHER LOT VALUES HAVE CONTRIBUTED TO AN 84 INCREASE IN LOCAL NEWHOME PRICES OVER THE PAST THREE YEARS WITH INCREASED LAND PRICES WE WILL SEE A PROFIT SQUEEZE ON THE BUILDER AND PRICES GOING UP HE SAID IN THE NORTHEAST TOLL BROTHERS INC A BIG BUILDER BASED IN HUNTINGDON VALLEY PA SAID IT IS SEEING LOT SHORTAGES IN BOSTON AND THE CONNECTICUT SUBURBS OF NEW YORK CITY AND THAT SHORTFALLS ARE LIKELY WITHIN THE NEXT YEAR IN MARYLAND DELAWARE VIRGINIA AND THE EASTERN SUBURBS OF PHILADELPHIA IT'S THE SAME AS AN OIL WELL SAID ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY IT PUMPS AND PUMPS AND ALL OF A SUDDEN YOU HAVE THE LAST BARREL MR TOLL SAID HIS COMPANY BOOSTED PRICES ON ITS NEW HOMES AN AVERAGE OF 5 IN THE PAST SIX MONTHS IN PART BECAUSE OF THE ANTICIPATED SHORTAGE OF LOTS TODD ZIMMERMAN A HOUSING ANALYST BASED IN CLINTON NJ SAID LOT SUPPLIES ARE ALSO VERY TIGHT IN THE WESTCHESTER COUNTY NY SUBURBS OF NEW YORK AS WELL AS IN NORTHERN NEW JERSEY IN NEW JERSEY MEANWHILE IT CAN TAKE BETWEEN TWO AND FIVE YEARS TO GET GOVERNMENT APPROVALS TO DEVELOP LOTS MR ZIMMERMAN SAID SPOT SHORTAGES ARE DEVELOPING EVEN IN MARKETS THAT HAVE AN OVERABUNDANT SUPPLY OF LOTS IN THE DALLASFORT WORTH METROPLEX FOR INSTANCE THE THRIVING SUBURB OF COPPELL EXPERIENCED SUCH A SHORTAGE BECAUSE OF ITS ALLURE FOR HOME BUYERS THAT LOTS WHICH TWO YEARS AGO FETCHED BETWEEN 25000 AND 35000 ARE NOW GOING FOR BETWEEN 45000 AND 55000 SAID EDDIE COLLINS PRESIDENT OF DALLASBASED GRIFFIN CONSULTING & RESEARCH CORP THE REST OF THE AREA MEANWHILE IS SATURATED IN A 29MONTH SUPPLY OF LOTS MANY OF WHICH ARE CONCENTRATED IN LESS DESIRABLE AREAS AND IN SOUTHERN CALIFORNIA WHICH IS STILL MIRED IN RECESSION LOT SHORTAGES ARE LIKELY IN THE NEXT 12 TO 16 MONTHS IN MORE POPULAR COASTAL AREAS SUCH AS ORANGE COUNTY AND LOS ANGELES COUNTY WHILE OVERALL THE REGION IS AWASH IN A 30MONTH SUPPLY OF LOTS SAID BOB BRAY SENIOR MARKETING CONSULTANT FOR MEYERS GROUP A NEWPORT BEACHBASED REAL ESTATE CONSULTING FIRM BUT GIVEN SOUTHERN CALIFORNIA'S STILLDETERIORATING ECONOMY MR BRAY ADDED TO BE HONEST I DON'T SEE APPRECIATION IN LAND PRICES FOR SEVERAL YEARS TO COME 9302090139 930209 INTERNATIONAL FRENCH GERMAN BANKS BUY 901 OF CHARTERHOUSE BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON CREDIT COMMERCIAL DE FRANCE AND BERLINER HANDELS & FRANKFURTER BANK AGREED TO BUY 901 OF CHARTERHOUSE PLC THE MERCHANTBANKING UNIT OF ROYAL BANK OF SCOTLAND THE TRANSACTION FOR 235 MILLION 3396 MILLION MARKS AN AMBITIOUS BID BY THE FRENCH AND GERMAN BANKS TO CREATE A NEW EUROPEAN INVESTMENTBANKING VENTURE CCF AND BHFBANK SAID THEY WILL SET UP A JOINTLY OWNED HOLDING COMPANY TO ACQUIRE MOST OF CHARTERHOUSE FROM ROYAL BANK OF SCOTLAND THE BRITISH BANK INITIALLY WILL RETAIN A 99 STAKE AS PART OF AN AGREEMENT TO ENSURE CONTINUITY IN CHARTERHOUSE'S ACTIVITIES CCF OFFICIALS SAID IT IS LIKELY THAT ROYAL BANK EVENTUALLY WILL SELL THAT STAKE TOO CHARTERHOUSE HAS TOTAL ASSETS OF 189 BILLION AND DISCLOSED NET ASSETS OF 137 MILLION IT REPORTED CONSOLIDATED PRETAX PROFIT BEFORE EXCEPTIONAL ITEMS OF 234 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 1992 CCF OFFICIALS SAY THEY EXPECT CHARTERHOUSE TO AT LEAST MATCH THAT FIGURE THIS YEAR THE AGREEMENT WHICH IS SUBJECT TO THE APPROVAL OF BRITISH AUTHORITIES FOLLOWS FIVE MONTHS OF PARALLEL NEGOTIATIONS FOR CCF FRANCE'S 10TH LARGEST BANK WITH TOTAL ASSETS OF AROUND 292 BILLION FRANCS 5207 BILLION IT FORMS PART OF A GRAND DESIGN TO DEVELOP INVESTMENT BANKING AS ONE OF FOUR CORE AREAS OF ACTIVITY ALONGSIDE RETAIL BANKING FUND MANAGEMENT AND PRIVATE BANKING MARKETS ARE BECOMING MORE AND MORE INTERNATIONAL AND OUR CLIENTS ARE LOOKING INCREASINGLY TO INTERNATIONALIZE THEIR BUSINESSES SAID RENE DE LA SERRE CCF'S DIRECTOR GENERAL WITH RESPONSIBILITY FOR INVESTMENT BANKING CCF HAS HAD LINKS WITH BHFBANK A CLOSELY HELD GERMAN BANK WITH ASSETS OF 46 BILLION MARKS 2774 BILLION FOR A NUMBER OF YEARS IN 1987 WHEN A FRENCH CONSERVATIVE GOVERNMENT REPRIVATIZED CCF CCF AND BHFBANK EACH TOOK A 1 STAKE IN EACH OTHER AS A TRIO MR DE LA SERRE SAID CCF BHFBANK AND CHARTERHOUSE WILL BE ABLE TO CONSOLIDATE THEIR POSITION IN THEIR HOME MARKETS AND PROVIDE IMPROVED SERVICES FOR THEIR CLIENTS ABROAD OUR OBJECTIVE IS TO BUILD A EUROPEAN ASSOCIATION OF THREE MERCHANT BANKS KEEPING THEIR NATIONAL CHARACTER AND ACTIVITIES BUT POOLING THEIR STRENGTHS IN THE INTERNATIONAL ARENA HE SAID ROYAL BANK SAID THE SALE REFLECTS A DRIVE TO FOCUS ON ITS CORE COMMERCIALBANKING AND INSURANCE BUSINESSES THE BRITISH BANK WILL RETAIN CHARTERHOUSE'S CAPITALMARKETS DIVISION MERGING IT WITH ITS OWN TREASURY AND CAPITALMARKETS BUSINESS 9302090138 930209 PAYCO TO GET FTC COMPLAINT BROOKFIELD WIS PAYCO AMERICAN CORP SAID THE FEDERAL TRADE COMMISSION STAFF RECOMMENDED TO THE COMMISSION THAT A COMPLAINT BE FILED AGAINST PAYCO BASED ON ALLEGED VIOLATIONS OF THE FAIR DEBT COLLECTION PRACTICES ACT PAYCO WHICH PROVIDES ACCOUNTS RECEIVABLE BILLING AND COLLECTION SERVICES SAID IT WILL ESTABLISH A RESERVE AGAINST FOURTHQUARTER EARNINGS TO COVER ANY POTENTIAL FTC PENALTY STEMMING FROM THE ALLEGED VIOLATIONS JAMES BOHMANN SENIOR VICE PRESIDENT SAID THE COMPANY WOULD DISCLOSE THE SIZE OF THE RESERVE WHEN IT RELEASES EARNINGS NEXT WEEK HE SAID THE PENALTY IF ANY WOULDN'T MATERIALLY AFFECT PAYCO'S FINANCIAL CONDITION MR BOHMANN DECLINED TO COMMENT ON THE SPECIFIC ALLEGATIONS AGAINST THE COMPANY 9302090137 930209 LEISURE & ARTS ON SPORTS MICHIGAN'S FAB FROSH NOW SUPER SOPHS BY FREDERICK C KLEIN ANN ARBOR MICH LIKE THE TSHIRT MOTTO PUTS IT THE UNIVERSITY OF MICHIGAN'S BASKETBALL TEAM MAY NOT BE PERFECT BUT SOME OF ITS PARTS ARE EXCELLENT THE BEST ARE THOSE THAT ENABLE IT TO DEPOSIT THE BALL IN THE BASKET WITHOUT THE NECESSITY OF SHOOTING IT THE TALL SWIFT WOLVERINES GAVE A NICE DISPLAY OF THAT FACILITY IN THEIR CRISLER ARENA HOME ON SUNDAY AFTERNOON SENDING A FULLHOUSE CROWD OF 13500 HOME SMILING WITH AN 8476 WIN OVER PURDUE FORTYEIGHT OF THEIR POINTS CAME ON LAYUPS DUNKS OR REBOUND PUTBACKS WHICH IS SCORINGSHEET TERMINOLOGY FOR SHOTS THAT ARE NOT REALLY SHOTS ADD SEVERAL MORE HOOPS ON FLIPS THAT WENT NO FARTHER THAN A TALL MAN'S WINGSPAN AND THE TOTAL PRESSED 60 THE WAY THEY WERE BATTING THE BALL AROUND UP THERE IT LOOKED LIKE VOLLEYBALL SAID GENE KEADY THE PURDUE COACH WHOSE BOYS HAD TO BE CONTENT WITH PLAYING THE GAME LISTED ON THE PROGRAM IF SUCH TALK SOUNDS FAMILIAR IT SHOULD YOU MAY RECALL THAT LAST YEAR MICHIGAN MADE IT TO THE TERMINAL TWO OF THE NCAA TOURNAMENT WITH A SUPERCHARGED SQUAD THAT MOSTLY STARTED FIVE FRESHMEN THOSE LADS ARE SOPHOMORES NOW AND THEIR 183 WONLOST RECORD IN THIS FASTEVAPORATING CAMPAIGN ATTESTS THAT THEY ARE NONE THE WORSE FOR THEIR EXTENDED BRUSH WITH ACADEME TRUE THERE ARE THOSE THREE LOSSES TO NONCONFERENCE FOE DUKE AND BIG TEN RIVALS INDIANA AND IOWA BUT LAST YEAR'S NCAA RUNNERUP TO DUKE LOST NINE TIMES IN ALL AND THE 198889 MICHIGAN GANG THAT WON THE NATIONAL CROWN SUFFERED SEVEN DEFEATS ALONG THE WAY WINNING THE BIG TEN CHAMPIONSHIP WAS A GOAL OF OURS AND WITH INDIANA BEING UNDEFEATED SO FAR WE MIGHT NOT ACHIEVE IT BUT WE'VE BEEN ABLE TO GET PAST THAT DISAPPOINTMENT BEFORE NOTED STEVE FISHER THE MICHIGAN COACH THE DIFFERENCE BETWEEN FISHER'S PREVIOUS POWERHOUSES AND THIS ONE IS THAT THOSE TEAMS SURPRISED MANY PEOPLE WHILE ALMOST EVERYONE WHO CAN READ A BOX SCORE EXPECTS THIS GROUP TO TAKE THAT LAST SHORT STEP TO THE TOP OF THE VICTORY PLATFORM BACK IS CHRIS WEBBER THE 6FOOT9 MANCHILD FROM DETROIT WHOSE SIGNATURE DUNKS ARE OFTEN DELIVERED TONGUE OUT A LA MICHAEL JORDAN ALSO RETURNED IS DETROITER JALEN ROSE THE SKINNY 6FOOT8 POINT GUARD WHO SPORTS THE BAGGIEST SHORTS AND SHINIEST DOME IN COLLEGIATE HOOPS THE REST OF LAST SEASON'S FAB FIVE FROSH ARE JUWAN HOWARD A BIG FELLA FROM CHICAGO AND A COUPLE OF MIDSIZED TEXANS FORWARD RAY JACKSON AND GUARD JIMMY KING EACH WOULD HAVE BEEN A RECRUITING TROPHY FOR ANY SCHOOL BUT DECIDED THERE COULD BE MORE PROFIT IN PLAYING TOGETHER TO THE QUESTION OF WHY MICHIGAN AND THE UNPREPOSSESSING FISHER A CAREER ASSISTANT ELEVATED TO UM'S HEAD COACHING JOB JUST BEFORE TOURNAMENT TIME IN 1989 WHEN BILL FRIEDER HIS BOSS WAS SENT PACKING IMMEDIATELY AFTER ACCEPTING ANOTHER SCHOOL'S OFFER FOR THE FOLLOWING SEASON WEBBER HAD THE MOST CONCISE ANSWER WE DIDN'T WANT TO PLAY FOR SOMEBODY RANTING AND RAVING ALL THE TIME SAID HE WITH PLAYERS LIKE WEBBER OF COURSE A COACH HAS RELATIVELY LITTLE TO RANT ABOUT AND WHILE FISHER IS NOT WITHOUT COMPLAINT HE HAS KEPT IT MUTED TO THOSE WHO ASSERT THAT HIS TEAM SEEMS TO COAST BETWEEN DISPLAYS OF BRILLIANCE HE ADMITS ONLY THAT SOMETIMES WE PLAY BETTER THAN OTHER TIMES AND TO THE QUERY ABOUT WHETHER ALL THE TALENT AT HIS DISPOSAL HAS A DOWN SIDE HE SMILES AND ANSWERS ONLY TO OUR OPPOSITION THAT FEW CAN TURN ON THE JUICE LIKE MICHIGAN WAS MUCH IN EVIDENCE SUNDAY AGAINST A TEAM THAT QUALIFIED AS A MORETHANPERFUNCTORY OPPONENT PURDUE HAD A WONLOST MARK OF 134 COMING HERE AND WAS RANKED 19TH NATIONALLY TO MICHIGAN'S SEVENTH IN THE ASSOCIATED PRESS POLL IN GLENN ROBINSON A 6FOOT8 FORWARD FROM GARY IND THE BOILERMAKERS BOASTED THE PLAYER WHO WAS 1A TO WEBBER'S 1 IN THE 1991 RECRUITING DERBY BUT WHILE WEBBER WAS STARRING LAST SEASON ROBINSON WAS STUDYING SITTING OUT A YEAR FOR FAILURE TO MEET NCAA STANDARDS FOR FRESHMAN ATHLETIC PARTICIPATION AS THE BIG TEN'S LEADING SCORER TO DATE ROBINSON HAS MORE THAN LIVED UP TO HIS BILLING AND HE DID NOTHING TO DIM HIS STAR ON SUNDAY HE SCORED A GAMEHIGH 31 POINTS ON 10FOR17 SHOOTING INCLUDING FIVEFORFIVE FROM THREEPOINT TERRITORY INDEED PURDUE SET SEVERAL SCHOOL RECORDS BY SINKING 10 OF 12 THREEPOINT SHOTS INCLUDING ALL EIGHT OF ITS SECONDHALF TRIES AND ITS LONGRANGE MARKSMANSHIP MADE THE GAME CLOSER THAN IT MIGHT OR SHOULD HAVE BEEN BUT MICHIGAN TOOK COMMAND OF THE CONTEST DURING A FOURMINUTE FIRSTHALF RUN IN WHICH IT BLITZED PURDUE 192 WITH ALL OF THOSE POINTS EXCEPT A SINGLE FREE THROW COMING ON LAYUPS DUNKS OR REBOUND PUTBACKS AND WHEN AFTER MUCH TRAVAIL THE VISITORS HAD TRIMMED THE LEAD FROM 15 POINTS TO SIX 6155 WITH SEVEN MINUTES LEFT THE WOLVERINES WHIPPED OFF A QUICK NINEPOINT BURST TO SETTLE MATTERS THE VICTORY WAS ESPECIALLY IMPRESSIVE BECAUSE OF THE BREADTH OF WOLVERINE PARTICIPATION IN ALL SAVE FOUR PREVIOUS GAMES THIS TERM EITHER WEBBER OR HOWARD LED THE MICHIGAN SCORING BUT ITS SUNDAY POINT PACER WAS THE 6FOOT5 KING WITH 24 AND HE HAD THREE STEALS AND THREE BLOCKED SHOTS TO BOOT IN A SPLENDID DEFENSIVE EFFORT MOREOVER MICHIGAN HAD A 3820 REBOUNDING EDGE THAT KEADY LATER CALLED DECISIVE AND ITS LEADER IN THAT DEPARTMENT WAS CENTER ERIC RILEY WHO'D NEVER BEEN CERTIFIED AS FABULOUS THE 7FOOT SENIOR COLLECTED 12 REBOUNDS IN 17 MINUTES OF PLAY AND HAD EIGHT POINTS BESIDES THAT'S THE THING ABOUT OUR TEAM YOU MIGHT BE ABLE TO STOP ONE OR TWO OR THREE OF US BUT SOMEBODY ELSE'LL GET YA SAID WEBBER THERE'S A WHOLE LOT TO BE SAID FOR PLAYING WITH GUYS WHO CAN PLAY JUST WAIT 'TIL DALLAS DRAFTS HIM 9302090136 930209 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF JAMES A RASULO WAS NAMED SENIOR VICE PRESIDENT CORPORATE ALLIANCES A NEW POSITION MR RASULO 37 YEARS OLD PREVIOUSLY WAS VICE PRESIDENT STRATEGIC PLANNING PETER CLARK 59 WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT SPECIAL PROJECTS HE HAD BEEN SENIOR VICE PRESIDENT PARTICIPANT AFFAIRS DISNEY IS INVOLVED IN MOVIE AND TELEVISION PROGRAMMING THEME PARKS AND CHARACTER MERCHANDISING 9302090135 930209 MARKETING & MEDIA ABC WORKERS ACCEPT BUYOUT NEW YORK ABOUT 500 EMPLOYEES HAVE ACCEPTED A VOLUNTARY BUYOUT PACKAGE OFFERED TO SOME 3000 NONUNION WORKERS AT THE ABC NETWORK THE DEADLINE FOR ACCEPTING THE PACKAGE AT THE CAPITAL CITIES/ABC INC UNIT WAS FRIDAY THE EMPLOYEES' LAST DAY AT WORK WILL BE FEB AMONG THOSE WHO ACCEPTED THE BUYOUT WERE STEPHEN SOLOMON SENIOR VICE PRESIDENT OF ABC SPORTS AND AT LEAST ONE MIDLEVEL VICE PRESIDENT IN THE NETWORK SALES DEPARTMENT IN THE NEXT TWO OR THREE WEEKS ONCE THE NETWORK ANALYZES HOW TO RESTRUCTURE BASED ON WHICH EMPLOYEES TOOK THE BUYOUTS THERE ARE ALSO EXPECTED TO BE A MINIMAL NUMBER OF LAYOFFS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY 9302090134 930209 LETTERS TO THE EDITOR HIGH PRODUCTIVITY BRINGS HIGH WAGES THE MYTH THAT AMERICANS CAN'T COMPETE WITH LOWERWAGE FOREIGN WORKERS JUST WON'T DIE JONATHAN TASINI HIGH WAGES AND NAFTA CAN'T COEXIST COUNTERPOINT OPED PAGE JAN 21 GRIPS THE MYTH LIKE A DOG HANGING ON TO A BONE FREER TRADE GENERALLY PROMOTES PROSPERITY NOT POVERTY IT DOES SO BY DIRECTING EFFORTS FROM LESS TO MORE PRODUCTIVE ACTIVITIES ARGUING AS MR TASINI DOES THAT AMERICAN WAGES MUST COLLAPSE IN THE FACE OF FREER TRADE WITH MEXICO IGNORES THE BASIC REASON FOR THE WAGE GAP AMERICAN WORKERS ARE TYPICALLY MORE PRODUCTIVE IF AN AMERICAN WORKER RECEIVES AN HOURLY WAGE OF 10 AND PRODUCES 10 UNITS AN HOUR THEN THE LABOR COST OF EACH UNIT IS 1 BUT IF A FOREIGN WORKER EARNING ONLY 2 PRODUCES ONE UNIT AN HOUR THE COST OF EACH UNIT IS 2 SHOULD LESSPRODUCTIVE FOREIGN WORKERS THEN CONDEMN THE SUCKING SOUND TO THE NORTH ARGUING THAT THEIR JOBS WILL MOVE TO WHERE PRODUCTIVITY IS MUCH HIGHER BUT PRODUCTION AND JOBS DON'T SWARM TO AREAS WHERE AVERAGE PRODUCTIVITY IS HIGHEST ANY MORE THAN THEY DO TO WHERE AVERAGE WAGE RATES ARE LOWEST IF LOW WAGES WERE THE ONLY DETERMINANT OF LOCATION WOULDN'T MOST DOMESTIC PRODUCERS ALREADY HAVE FLOCKED TO RELATIVELY LOWWAGE STATES FOREIGN TRADE DOES WEAKEN PARTICULAR INDUSTRIES WHOSE LAGGING PRODUCTIVITY MAKES THEIR WAGE COSTS COMPARATIVELY HIGH BUT AT THE SAME TIME IT NURTURES OTHER DOMESTIC INDUSTRIES WHOSE HEALTHY PRODUCTIVITY MAKES THEIR WAGE COSTS RELATIVELY LOW GENERALLY AMERICAN WORKERS WILL CONTINUE TO RECEIVE HIGHER WAGES AS LONG AS THE LEVEL OF THEIR PRODUCTIVITY ALSO IS HIGHER YET SOME DON'T WANT THEIR PAY LINKED TO THEIR PRODUCTIVITY SO THEY PLEAD FOR GOVERNMENT PROTECTION FROM LOWPAID FOREIGN WORKERS AND COLLECT THE BOOTY FROM AMERICAN CONSUMERS IN HIGHER PRICES HOW DOES SUCH PLUNDER SQUARE WITH OUR NEW PRESIDENT'S CALL TO GREATER PERSONAL RESPONSIBILITY MR TASINI FAILS TO MENTION THAT MEXICO HAS SOME OF THE LOWEST WAGES IN THE AMERICAS AND THE LARGEST MIGRATION OF PEOPLE TO THE US DUE TO A DRAMATIC IMBALANCE OF CAPITAL FLOWS FOR THE PAST 12 YEARS MEXICO'S MOST VALUABLE EXPORTS TO THE US HAVE BEEN CAPITAL FOLLOWED BY LABOR SINCE 1980 MEXICO HAS SENT ABROAD AN AVERAGE OF 10 BILLION US DOLLARS ANNUALLY IN DEBTRELATED PAYMENTS IT IS ALSO ESTIMATED THAT MEXICAN CAPITAL FLIGHT FROM 1978 TO 1988 WAS ABOUT 70 BILLION WHILE MEXICO'S TRADE DEFICIT WITH THE US FOR THE PAST TWO YEARS HAS BEEN MORE THAN 34 BILLION LEFT WITHOUT THE MEANS TO CREATE JOBS AND SUSTAIN STANDARDS OF LIVING MEXICO HAS BEEN LOSING TO THE US EVERY YEAR MORE THAN 300000 OF ITS MOST PRODUCTIVE AND ENTREPRENEURIAL WOMEN AND MEN INCLUDING LARGE NUMBERS OF EDUCATED SKILLED AND PROFESSIONAL PEOPLE MEXICO'S DRAMATIC DECAPITALIZATION FORCED THE SALINAS ADMINISTRATION TO RENEGOTIATE THE FOREIGN DEBT IN 1989 AND TO INITIATE TRADE NEGOTIATIONS WITH THE US AND CANADA AS A RESULT ALONG WITH DRASTIC ECONOMIC REFORMS MEXICAN CAPITAL ABROAD IS RETURNING AND FOREIGN INVESTORS NOW FIND IN MEXICO ONE OF THE MOST COMPETITIVE FINANCIAL MARKETS IN THE WORLD HOWEVER ECONOMIC GROWTH HAS NOT REACHED POOR AND WORKING PEOPLE AND MEXICO STILL EXPORTS TWICE THE AMOUNT OF MONEY IT GETS THROUGH DIRECT FOREIGN INVESTMENT INBOND PLANTS AND REMITTANCES FROM IMMIGRANTS COMBINED MEXICO WON'T BE ABLE TO SUBSIDIZE THE US ANY LONGER ITS FINANCIAL AND HUMAN HEMORRHAGE NEEDS A CURE URGENTLY AN AGREEMENT ALLOWING MEXICO TO INVEST AT HOME THE BILLIONS OF DOLLARS NOW USED TO SERVICE AN ALREADY OVERPAID AND OVERVALUATED FOREIGN DEBT SHOULD BE PART OF A PLAN DIRECTED TO MAKE MEXICO A HEALTHY PARTNER A NATION INDEED WITH THE MEANS TO CREATE OPPORTUNITY A HIGHER STANDARD OF LIVING AND A HEALTHIER HABITAT FOR ALL MEXICANS 9302090133 930209 WHO'S NEWS COOPERATIVE BANK OF CONCORD COOPERATIVE BANK OF CONCORD MICHAEL O GILLES 33 YEARS OLD AND SENIOR VICE PRESIDENT AND TREASURER OF THIS BANK WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF FINANCIAL OFFICER HE HAS HELD THE POST IN AN ACTING CAPACITY SINCE THE RESIGNATION OF PAUL FEELEY IN AUGUST 9302090132 930209 INTERNATIONAL SPAIN IS WITHHOLDING LOAN FOR THEME PARK PROJECT SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S STATE INDUSTRIAL FINANCING CONCERN SAID IT WON'T EXTEND A 15 BILLION PESETA 1274 MILLION LOAN FOR A THEME PARK BEING BUILT WITH THE MINORITY PARTICIPATION OF ANHEUSERBUSCH COS UNTIL FINANCIER JAVIER DE LA ROSA GIVES UP HIS MAJORITY STAKE IN THE PROJECT THE GOVERNMENT SAID IT IS REFUSING TO LEND THE MONEY TO THE PARK CONSORTIUM GRAND PENINSULA SA BECAUSE MR DE LA ROSA RAN UP LARGE DEBTS WITH THE STATE BANKING GROUP ARGENTARIA DURING HIS PREVIOUS MANAGEMENT STINT AT GRUPO TORRAS SA THE SPANISH HOLDING COMPANY OF THE KUWAIT INVESTMENT OFFICE MR DE LA ROSA HAS BEEN WRESTLING WITH THE KIO OVER KUWAIT'S MASSIVE LOSSES ON INVESTMENTS IN SPAIN THE SPANISH FINANCIER OWNS 80 OF GRAND PENINSULA ANHEUSERBUSCH HOLDS 20 ANHEUSERBUSCH OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR DE LA ROSA COULDN'T BE REACHED 9302090130 930209 HEARD ON THE STREET BUYING BANKRUPTCY STOCKS CAN BE IRRATIONAL MOVE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS HAVE TAKEN A FRONTROW SEAT AT THE BANKRUPTCY FOLLIES STOCKS OF COMPANIES OPERATING UNDER CHAPTER 11 OF THE BANKRUPTCY LAWS LTV EAGLEPICHER INDUSTRIES AND WANG LABORATORIES TO NAME THREE GLARING EXAMPLES HAVE BEEN TRADING LATELY AT PRICES THAT MARKET VETERANS SAY ARE IRRATIONALLY HIGH THE PUBLIC JUST DOESN'T UNDERSTAND THE DYNAMICS OF A BANKRUPTCY SAYS DAN HARMETZ COMANAGER OF THE FIDELITY CAPITAL & INCOME FUND TEMPTED BY THE SIGHT OF A PENNIESASHARE PRICE ON A BIGNAME STOCK SMALL INVESTORS FORGET THAT IN BANKRUPTCY CASES THE BANKS AND THE BONDHOLDERS AND EVEN THE PIZZA DELIVERY SERVICE ALL HAVE THE RIGHT TO BE BE PAID IN FULL BEFORE STOCKHOLDERS EVER SEE A DIME AND THEIR BROKERS OFTEN FAIL TO WARN THEM SAYS ROBIN WINSLOW A TRADER WITH DEMPSEY & CO IN CHICAGO BROKERS JUST LOOK AT IT FROM THE STANDPOINT THAT THEY'RE MAKING A SALE IN SOME BANKRUPTCY CASES AS WITH LTV'S THE COMPANY HAS FILED A REORGANIZATION PLAN EXPLICITLY STATING WHAT COMMON STOCKHOLDERS ARE TO RECEIVE WHEN THE COMPANY GETS OUT OF BANKRUPTCY COURT FOR LTV SHAREHOLDERS THAT AMOUNT IS JUST 322 CENTS A SHARE YET LTV SHARES WERE TRADING YESTERDAY AT 625 CENTS AND IN LATE JANUARY THEY SHOT UP AS HIGH AS 2 MORE THAN 60 TIMES THEIR STATED REORGANIZATION VALUE THAT PROMPTED THE COMPANY TO PUT OUT A CAUTIONARY STATEMENT TO COOL OFF INVESTORS PITY THE PERSON WHO PUT 1000 IN THE STOCK AT THE JAN 22 HIGH THAT PERSON STANDS TO WIND UP WITH 500 SHARES WORTH A MEASLY 1610 IF INVESTORS ARE BETTING THAT THE DEAL WILL BE SWEETENED THEY ARE FACING LONG ODDS THE TREND IN RECENT YEARS HAS BEEN FOR CREDITORS AND BONDHOLDERS WHO LEGALLY STAND IN LINE AHEAD OF STOCKHOLDERS IN COLLECTING FROM A BANKRUPT COMPANY TO ASSERT THEIR RIGHTS AGGRESSIVELY WHEN PLANS ARE REVISED IT IS USUALLY TO GIVE THE STOCKHOLDERS LESS NOT MORE LAST WEEK EAGLEPICHER SHARES MORE THAN DOUBLED HITTING 5 IN INTRADAY TRADING FRIDAY BASED ON RUMORS THAT THERE WILL BE SOME VALUE LEFT FOR SHAREHOLDERS WHEN A REORGANIZATION IS CONCLUDED THE COMPANY ISSUED A NEWS RELEASE CAUTIONING THAT THERE IS NO ASSURANCE OF THAT OUTCOME AND THE STOCK HAS BACKED OFF YESTERDAY IT CLOSED AT 3 UP 1/4 IN THE CASE OF WANG NO FORMAL REORGANIZATION PLAN HAS YET BEEN FILED BUT WANG STOCK IS TRADING AT VALUES THAT MANY ANALYSTS CONSIDER RIDICULOUS WANG STOCK IS GOING TO BE WIPED OUT SAYS FIDELITY'S MR HARMETZ IT'S JUST A SHAME TO SEE SPECULATION IN IT HE SAYS I CAN'T FIGURE OUT WHO IS BUYING THIS AND WHO IS TOUTING IT SOMEONE SHOULD TRY TO DO SOMETHING ABOUT IT SAYS MR HARMETZ IT MIGHT HELP HE AND SOME OTHERS THINK IF BROKERS WERE REQUIRED TO TELL PEOPLE THE STATED VALUE OF A STOCK UNDER A REORGANIZATION PLAN BEFORE ANY TRADE IN THE STOCK WERE COMPLETED JOHN C BOLAND MANAGER OF REMNANT PARTNERS LP IN BALTIMORE HAS SOLD SHORT WANG CLASS C SHARES A BET THAT THEY WILL DECLINE THE C SHARES HAVE EXTRA VOTING POWER BUT WILL FETCH THE SAME AMOUNT OF MONEY AS THE REGULAR CLASS B SHARES IN A REORGANIZATION MR BOLAND BELIEVES HE SUSPECTS THAT AMOUNT WILL BE PENNIES AT MOST YESTERDAY WANG B SHARES WERE QUOTED AT 1 1/8 AND THE C SHARES AT 3 1/4 THE C SHARES HAVE RECENTLY BEEN AS HIGH AS 5 UNLIKE LTV AND EAGLEPICHER WANG HASN'T ISSUED A STATEMENT CAUTIONING AGAINST SPECULATION IN ITS STOCK A WANG SPOKESMAN DECLINED TO COMMENT YESTERDAY ON WHETHER THERE WILL BE ANY VALUE FOR SHAREHOLDERS IN THE REORGANIZATION PLAN WHICH IS TO BE FILED BY MARCH 16 LTV AND WANG AREN'T ISOLATED EXAMPLES INVESTMENT PROFESSIONALS SAY THEY HAVE SEEN CRAZY PRICING IN RECENT MONTHS IN OTHER BANKRUPTCY ISSUES SUCH AS THE COMMON STOCK OF AMES DEPARTMENT STORES CONTINENTAL AIRLINES AND LONE STAR INDUSTRIES AND THE PREFERRED STOCK OF TWA MAX HOLMES A SALOMON BROTHERS ANALYST WHO SPECIALIZES IN SECURITIES OF DISTRESSED COMPANIES HAS ANOTHER THEORY ABOUT WHY SPECULATION IN BANKRUPTCY STOCKS HAS BEEN SO HOT IT'S THE PENNY STOCK BOYS MR HOLMES SAYS RECENT CHANGES IN SECURITIES REGULATION HAVE MADE IT HARDER FOR SALESPEOPLE TO PUSH CERTAIN LOWPRICED OBSCURE STOCKSTHOSE PRICED UNDER 5 A SHARE AND NOT LISTED ON AN EXCHANGE OR THE NASDAQ TRADING SYSTEM AS A RESULT MR HOLMES SUGGESTS SOME HIGHPRESSURE SALESPEOPLE HAVE TURNED TO ENCOURAGING RECKLESS TRADING IN BANKRUPTCY STOCKS TO BE SURE SOME STOCKS OF COMPANIES IN CHAPTER 11 DO PRODUCE GAINS FOR INVESTORS ALEXANDER'S THE DEPARTMENT STORE CHAIN FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS LAST MAY FROM ITS MAY LOW OF 10 1/2 ALEXANDER'S STOCK HAS CLIMBED STEADILY TO 44 1/2 YESTERDAY THE COMPANY'S EXTENSIVE REAL ESTATE HOLDINGS APPEAR TO HAVE CONSIDERABLE VALUE EVEN IN A DEPRESSED REALESTATE MARKET CLOTHINGMAKER SALANT IS ANOTHER COMPANY IN WHICH PEOPLE WHO BOUGHT STOCK BEFORE A REORGANIZATION WERE ABLE TO MAKE A PROFIT BUT THOSE ARE RARITIES FOR EVERY ALEXANDER'S OR SALANT INVESTMENT PROFESSIONALS SAY THERE ARE PROBABLY NINE OTHER CASES IN WHICH PEOPLE WHO SPECULATE IN BANKRUPTCY STOCKS GET WIPED OUT OR NEARLY SO ALMOST ALWAYS IF THERE'S MONEY TO BE MADE IT'S THE BONDHOLDERS NOT THE STOCKHOLDERS WHO MAKE IT THE BONDS OFTEN ARE EXCHANGED FOR STOCK IN THE REORGANIZED ENTERPRISE HOLDERS OF THE OLD STOCK OFTEN GET NOTHING OR A TOKEN PAYMENT SUCH AS ONE SHARE OF NEW STOCK FOR EACH 100 SHARES THEY HELD OF THE OLD STOCK I HAVE NEVER INVESTED IN THE COMMON STOCK OF A COMPANY IN CHAPTER 11 AND I DON'T THINK I EVER WILL SAYS FIDELITY'S MR HARMETZ SOPHISTICATED INSTITUTIONAL INVESTORS LIKE MYSELF ARE INVESTING IN THE DEBT OF THESE COMPANIES I WOULD SAY THAT IN 40 OF ALL BANKRUPTCIES OLD STOCK GETS ZERO AND IN 50 THEY GET SOME VERY TINY SLIVER SAYS MR HOLMES OF SALOMON BROTHERS ONLY IN ABOUT 10 OF CASES SUCH AS ALEXANDER'S OR GAYLORD CONTAINER DO THEY GET SOMETHING REAL STOCKHOLDERS ARE SO FAR DOWN THE TOTEM POLE IN A BANKRUPTCY PROCEEDING THAT WHAT THE STOCKHOLDERS WANT MAKES VERY LITTLE DIFFERENCE SAYS GEORGE PUTNAM PRESIDENT OF NEW GENERATION RESEARCH WHICH PUBLISHES BANKRUPTCY DATASOURCE HE THINKS THE RECENT FLURRY IN BANKRUPTCY STOCKS IS TESTIMONY TO THE SPECULATIVE TENOR OF THE STOCK MARKET TODAY AMES DEPARTMENT STORES EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN DECEMBER THE TRADING IN AMES STOCK REFERRED TO IN YESTERDAY'S HEARD ON THE STREET COLUMN INVOLVED OLD AMES SHARES NOT THE NEW STOCK THAT BEGAN TRADING ON A WHEN ISSUED BASIS DEC 30 AMES'S NEW STOCK DOES HAVE VALUE HOLDERS OF THE OLD STOCK RECEIVED NOTHING IN THE COMPANY'S REORGANIZATION 9302090129 930209 BUSINESSES MORE INTERESTED IN BORROWING STUDY SHOWS WASHINGTON BUSINESSES HAVE BECOME MORE INTERESTED IN BORROWING MONEY THE LATEST FEDERAL RESERVE SURVEY OF BANK LENDING OFFICERS SHOWS BUT BANKS HAVEN'T BECOME MORE INTERESTED IN LENDING IT TO THEM DEMAND FOR LOANS BY BUSINESSES HAS INCREASED SINCE NOVEMBER THE REPORT SAID DESPITE THE PICKUP IN INTEREST BANKS GENERALLY HAVEN'T EASED THEIR STANDARDS FOR MAKING COMMERCIAL AND INDUSTRIAL LOANS AND COMMERCIAL REAL ESTATE LOANS HOWEVER THERE WAS A TINY NET TIGHTENING OF LENDING TO LARGE AND MEDIUMSIZED COMPANIES AND A SMALL NET EASING OF LENDING TO SMALL BUSINESSES THE REPORT SAID IN CONTRAST TO THE LAST SURVEY IN NOVEMBER WHICH SHOWED A BIG INCREASE IN CONSUMER LOAN DEMAND THIS REPORT SEEMED TO SUGGEST THAT THE INTEREST IN RESIDENTIAL MORTGAGES HOMEEQUITY LINES OF CREDIT AND CONSUMER LOANS HAS LEVELED OFF SOMEWHAT THE FED SURVEY MADE LAST MONTH COVERED 58 DOMESTIC BANKS WHICH ACCOUNT FOR ABOUT ONETHIRD OF ALL THE DOMESTIC BANKING ASSETS IN THE US AND 18 FOREIGN BANKS ALMOST ALL THE BANKERS SURVEYED SAID THEY WERE HAPPY WITH THEIR BANKS' CAPITAL POSITIONS STILL MORE THAN ONETHIRD OF THE RESPONDENTS REPORTED TAKING STEPS OVER THE LAST QUARTER TO BEEF UP THEIR CAPITAL MORE THAN 60 OF RESPONDENTS FELT BANKING REGULATIONS HURT LENDING TO SMALL BUSINESSES MORE THAN LARGER ONES 9302090128 930209 INTERNATIONAL PHILIPPINES' RAMOS ORDERS SALE OF STAKE IN NATIONAL AIRLINE MANILA PHILIPPINES MOVING TO BREAK A STALEMATE IN A STRUGGLE FOR CONTROL OF PHILIPPINE AIRLINES PRESIDENT FIDEL RAMOS SAID THE GOVERNMENT WILL AUCTION A 13 STAKE IN THE NATIONAL CARRIER MR RAMOS SAID HE HAD ORDERED GOVERNMENT FINANCIAL INSTITUTIONS TO SELL THEIR ENTIRE STAKE OR ABOUT 20 OF PR HOLDINGS A CONSORTIUM THAT BOUGHT 67 OF PAL FROM THE GOVERNMENT LAST YEAR FOR 369 MILLION THE GOVERNMENT'S PR HOLDINGS STAKE IS EQUIVALENT TO 13 OF PAL THE AUCTION COULD SET OFF A FIERCE BIDDING WAR PITTING TOBACCO TYCOON LUCIO TAN AGAINST A SQUABBLING GROUP OF INVESTORS THAT INCLUDES TWO OF THE COUNTRY'S OLDEST SPANISH BUSINESS DYNASTIES AND IS NOMINALLY HEADED BY ANTONIO COJUANGCO JR PAL'S CHIEF EXECUTIVE OFFICER AND THE PRESIDENT OF PHILIPPINE LONG DISTANCE TELEPHONE CO MR COJUANGCO SECRETLY SOLD MR TAN 40 OF PR HOLDINGS AFTER IT WON AN AUCTION FOR A MAJORITY OF THE AIRLINE LAST YEAR BUT THE TWO HAD A FALLING OUT LAST YEAR AFTER MR COJUANGCO ORDERED 10 NEW JUMBO JETS WITHOUT CONSULTING MR TAN EACH SIDE CURRENTLY HOLDS ABOUT 40 OF PR HOLDINGS A CLOSE ASSOCIATE SAID MR TAN CERTAINLY WOULD BID NEITHER MR COJUANGCO NOR ANY OF THE SEVERAL EXECUTIVES WHO RUN THE AIRLINE FOR HIM RETURNED CALLS SEEKING COMMENT 9302090127 930209 WORLD MARKETS TOKYO EQUITIES END MIXED IN HUMDRUM ACTIVITY SHARE PRICES FIRM A BIT IN LONDON AND FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ENDED MIXED MONDAY IN TECHNICAL LACKLUSTER DEALINGS AND THE BENCHMARK NIKKEI INDEX LOST GROUND LONDON SHARES FIRMED AS AN OPTIMISTIC TONE RETURNED TO THE MARKET FRANKFURT PRICES EDGED HIGHER STABILIZING AFTER LAST WEEK'S RALLY IN TOKYO THE NIKKEI 225STOCK AVERAGE WHICH CLIMBED 14227 POINTS FRIDAY DECLINED 5117 TO 1728173 ON TUESDAY THE NIKKEI INDEX FELL 20618 POINTS TO CLOSE THE MORNING SESSION AT 1707555 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES DOWN SHARPLY FROM 3221 MILLION SHARES ON FRIDAY GAINERS NARROWLY OUTNUMBERED LOSERS 492457 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 764 POINTS FRIDAY ROSE 112 TO 130959 TURNOVER SKIDDED AS A LACK OF INCENTIVES PUSHED MANY INDIVIDUAL AND INSTITUTIONAL INVESTORS BACK TO THE SIDELINES FRESH MONEY HADN'T EMERGED EVEN AFTER THE BANK OF JAPAN CUT A KEY INTEREST RATE LAST WEEK THOUGH THAT DID HELP MAINTAIN SENTIMENT AND ALLAY PESSIMISM AS DID THE HEALTHY PERFORMANCE ON OVERSEAS EXCHANGES FRIDAY PARTLY ON GERMAN AND OTHER RATE CUTS AND ON STRONGER US ECONOMIC DATA BUT INVESTORS IN TOKYO WEREN'T OVERLY OPTIMISTIC EITHER AS DEALERS CONTINUED TO LOOK FOR THE JAPANESE GOVERNMENT TO FOLLOW UP THE MONETARY EASING WITH OTHER MEASURES TO REINVIGORATE THE AILING ECONOMY THE NIKKEI INDEX MOVED LOWER THROUGHOUT THE DAY BUT JUMPED A FEW TIMES ON STRONG ARBITRAGE BUYING BY A BIG JAPANESE BROKERAGE FIRM IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 71 POINTS TO 28700 THE FT 30STOCK INDEX ADDED 75 POINTS TO 22261 VOLUME WAS 5458 MILLION SHARES DOWN FROM 6946 MILLION IN THE PREVIOUS SESSION WHILE FRESH NEWS DIDN'T EMERGE TO MOVE THE LONDON MARKET HIGHER RENEWED SPECULATION ABOUT FURTHER CUTS IN BRITISH INTEREST RATES IN THE NEXT SEVERAL MONTHS INJECTED A BUOYANT NOTE INTO THE SESSION INVESTORS HELD ON TO BLUECHIP ISSUES AMID SPECULATION THAT THE GOVERNMENT WOULD SANCTION A FURTHER CUT IN INTEREST RATES AHEAD OF THE ANNUAL BUDGET STATEMENT ON MARCH 16 AND A SIMILAR REDUCTION IN EITHER JUNE OR JULY THIS PUSHED STOCK PRICES HIGHER TRADERS ALSO WERE ENCOURAGED BY BRITISH CONSUMER CREDIT DATA INVESTORS IGNORED THE WEAKER BRITISH POUND AGAINST A RISING DOLLAR AND DIDN'T GET ANY CLUES FROM A DIRECTIONLESS START ON WALL STREET WITH THE MARKET ADRIFT BUYING WAS SELECTIVE IN THE STOCKS PERFORMANCES THAT HAVE RECENTLY LAGGED BEHIND THE MARKET INVESTORS ALSO APPEARED UNWILLING TO STAKE ANY BIG POSITIONS FOLLOWING LAST WEEK'S SMART GAINS AND AHEAD OF THE REPORT ON JANUARY PRODUCER PRICES SCHEDULED FOR RELEASE TODAY IN ADDITION EARNINGS REPORTS TO COME THIS WEEK FROM BLUECHIP COMPANIES PUSHED SOME PARTICIPANTS TO THE SIDELINES IN FRANKFURT THE DAX 30STOCK INDEX ROSE 579 POINTS TO 164716 WHICH ALSO WAS THE INTRADAY HIGH AND THE AVERAGE'S HIGHEST LEVEL SINCE JULY 1992 THOUGH THE DAY'S RANGE WAS ONLY ABOUT 10 POINTS OF THE STOCKS IN THE INDEX 17 ADVANCED AND 13 DECLINED THE DAX RALLIED 44 LAST WEEK ON GERMAN LENDINGRATE CUTS AND A SETTLEMENT BY WESTERN GERMAN PUBLICSECTOR WORKERS FOR LOWERTHANEXPECTED PAY RAISES THE FRANKFURT MARKET'S UNDERLYING BULLISHNESS WAS STILL EVIDENT AS FOREIGNFUND MANAGERS WERE BEGINNING TO BUY MORE AFTER HAVING UNDERWEIGHTED THEIR GERMAN HOLDINGS IN GLOBAL PORTFOLIOS STILL MONDAY'S ACTIVITY WAS MOSTLY POSTRALLY POSITIONSQUARING AS LITTLE NEWS EMERGED TO AFFECT PRICES SIGNIFICANTLY PARIS STOCKS ENDED SLIGHTLY LOWER AFTER AN EARLY RALLY ON STEADY FRENCH INTEREST RATES FAILED TO SUSTAIN ANY MOMENTUM THE MARKET GAINED 65 IN THE PREVIOUS THREE SESSIONS MADRID EQUITIES FINISHED SLIGHTLY HIGHER AFTER THE MARKET LOST STEAM FOLLOWING LAST WEEK'S BIG GAINS THOUGH OPTIMISM THAT SPAIN WILL LOWER RATES FRIDAY GAVE SOME SUPPORT TO THE MARKET STOCKHOLM SHARE PRICES ROSE ACROSS THE BOARD IN HEAVY TRADING THE THIRD DAY IN A ROW OF BIG ADVANCES SUPPORTED BY CUTS IN GERMAN AND SWEDISH INTEREST RATES STOCKS GAINED OVERALL ON THE BIG ASIAN AND PACIFIC BOURSES SYDNEY SHARES POSTED THEIR BIGGEST JUMP IN A MONTH AS INVESTORS REACTED POSITIVELY TO THE AUSTRALIAN PRIME MINISTER'S ANNOUNCEMENT SUNDAY THAT THE NATIONAL ELECTION WILL BE HELD MARCH 13 ENDING MONTHS OF POLITICAL UNCERTAINTY IN SINGAPORE AFTER RECENT SHARP RISES STOCKS FELL ON PROFITTAKING HONG KONG STOCKS REBOUNDED FROM EARLY WEAKNESS TO END MODERATELY HIGHER AT INTRADAY PEAKS THE OPENING LOSSES STEMMED FROM WEEKEND STATEMENTS BY CHINESE OFFICIALS AIMED AT DERAILING HONG KONG GOV CHRIS PATTEN'S DEMOCRACY PROPOSALS BUT WHEN THIS FINALLY WASN'T DEEMED A FRESH DEVELOPMENT PARTICIPANTS QUICKLY BEGAN TO RECOUP THE LOSSES TAIPEI STOCKS ROSE MARGINALLY AS STRONG LATE BUYING HELPED PRICES TO RECOVER FROM LOWS MANILA SHARES SURGED 28 FOR THE BIGGEST SINGLEDAY ADVANCE THIS YEAR IN HEAVY TRADING ON RENEWED INTEREST BY FOREIGN INVESTORS FOREIGN SUPPORT ALSO LED WELLINGTON PRICES SHARPLY HIGHER IN LIGHT TRADING IN CHINA SHENZHEN CLASS B SHARES JUMPED 13 IN EXTREMELY HEAVY TRADING EXTENDING LAST WEEK'S RALLY ON UNCONFIRMED RUMORS OF A COMING CHANGE TO MAKE SHAREPRICE QUOTATIONS TO A FOREIGN CURRENCY RATHER THAN THE YUAN THE STANDARD CHARTERED SECURITIES INDEX OF CLASS B SHARES SOARED 2102 POINTS TO 17702 FOLLOWING FRIDAY'S 15 SURGE THIS YEAR THE INDEX HAS LEAPED 66 FUNDAMENTAL FACTORS ALSO HAVE ATTRACTED INVESTORS AS THE YUAN HAS DEPRECIATED AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM DAF SHARES CONTINUED TO SLIDE PLUNGING 155 GUILDERS OR 38 TO 95 DUTCH CENTS 51 US CENTS COURTAPPOINTED ADMINISTRATIVE RECEIVERS FOR THE FINANCIALLY STRAPPED ANGLODUTCH TRUCK MAKER PLAN TO BREAK IT UP AND FORM A NEW COMPANY WITH A FAR MORE LIMITED OPERATING SCOPE DAF WAS GRANTED PROTECTION FROM CREDITORS LAST WEEK AND AN INITIAL RESTRUCTURING AND LONGTERM FINANCING PLAN WAS REJECTED BY CREDITORS 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 9302090126 930209 TECHNOLOGY CLINTON ESTABLISHES WHITE HOUSE OFFICE ON ENVIRONMENT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLEDGING TO BRING NEW LEADERSHIP AND NEW ENERGY TO ENVIRONMENTAL REGULATION ABOLISHED THE 23YEAROLD COUNCIL ON ENVIRONMENTAL QUALITY AND REPLACED IT WITH A NEW WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY THE CHANGE WILL STRENGTHEN THE HAND OF VICE PRESIDENT ALBERT GORE IN SHAPING ENVIRONMENTAL POLICY AND MAY GIVE ENVIRONMENTAL ISSUES MORE PROMINENCE IN THE ADMINISTRATION'S DELIBERATIONS ON ECONOMIC AND NATIONAL POLICY MATTERS THE NEW OFFICE WILL BE HEADED BY KATHLEEN MCGINTY A FORMER SENATE STAFF AIDE TO MR GORE WHO LAST MONTH WAS NAMED THE PRESIDENT'S SPECIAL ASSISTANT FOR THE ENVIRONMENT IT WILL HAVE BROADER INFLUENCE AND A MORE EFFECTIVE AND FOCUSED MANDATE TO COORDINATE ENVIRONMENTAL POLICY THAN THE COUNCIL ON ENVIRONMENTAL QUALITY MR CLINTON SAID FOR EXAMPLE MS MCGINTY UNLIKE HER PREDECESSOR WILL SIT IN ON MEETINGS OF THE DOMESTIC POLICY COUNCIL THE NATIONAL SECURITY COUNCIL AND THE NEWLY FORMED ECONOMIC POLICY COUNCIL THE RESTRUCTURING WAS HAILED BY ENVIRONMENTAL GROUPS WHO HAVE BEEN AGITATING FOR THE ADMINISTRATION TO GIVE AN INCREASED ROLE TO THE NEARMORIBUND COUNCIL ON ENVIRONMENTAL QUALITY WHOSE CHIEF FUNCTION IN RECENT YEARS HAS BEEN TO PRODUCE ANNUAL REPORTS ON THE STATE OF THE NATION'S ENVIRONMENT THE CEQ HAD BECOME WEAK INEFFECTIVE AND VIRTUALLY IRRELEVANT UNDER PRESIDENTS BUSH AND REAGAN SAID NATIONAL WILDLIFE FEDERATION PRESIDENT JAY HAIR PRESIDENT CLINTON AND VICE PRESIDENT GORE ON SUNDAY BRIEFED LEADERS OF SEVERAL MAJOR ENVIRONMENTAL GROUPS ON THE NEW ENVIRONMENTAL OFFICE AMONG THOSE PRESENT WERE REPRESENTATIVES OF THE SIERRA CLUB THE ENVIRONMENTAL DEFENSE FUND THE WORLD RESOURCES INSTITUTE AND FRIENDS OF THE EARTH 9302090125 930209 INTERNATIONAL NORSK DATA HALTS TRADING IN SHARES AMID CREDITOR TALKS SPECIAL TO THE WALL STREET JOURNAL OSLO NORWEGIAN COMPUTER COMPANY NORSK DATA AS ABRUPTLY HALTED TRADING IN ITS SHARES FOR THE NEXT THREE WEEKS PENDING COMPLETION OF CRUCIAL NEGOTIATIONS WITH CREDITORS THAT WILL DETERMINE WHETHER IT SURVIVES AS AN INDEPENDENT COMPANY THE COMPANY FACES A FINANCIAL HURDLE WITH THE DEADLINE TO REPAY ABOUT 77 MILLION MARKS 46 MILLION WHEN A BOND ISSUE MATURES EARLY NEXT MONTH IT COULD BE DIFFICULT FOR US TO REPAY WITHOUT REFINANCING OR RESTRUCTURING DEBT IN SOME WAY SAID NORSK DATA TREASURER CARL ESPEN WOLLEBEK IN A PHONE INTERVIEW THESE DAYS NORSK DATA BEARS SCANT RESEMBLANCE TO THE HIGHFLYING MINICOMPUTER MAKER LIONIZED BY INTERNATIONAL INVESTORS DURING MUCH OF THE 1980S HUGE LOSSES SINCE 1988 HAVE TRIGGERED MANAGEMENT OVERHAULS AND SHARP CUTS NORSK DATA'S FINANCIAL RESERVES ARE NEARLY EXHAUSTED AT THE END OF LAST YEAR THE PARENT COMPANY'S SHAREHOLDERS EQUITY TOTALED A MERE 25 MILLION NORWEGIAN KRONER 36 MILLION WHILE DEBT OUTSTANDING EXCEEDED 850 MILLION KRONER NORSK DATA'S OPERATING UNITS HOWEVER ARE DOING FAIRLY WELL MR WOLLEBEK SAID I DON'T THINK THIS IS A THREAT TO THEIR ONGOING OPERATIONSMORE A BALANCE SHEET PROBLEM CONFINED TO THE PARENT COMPANY AND HE EXPRESSED OPTIMISM THAT DEBT RESTRUCTURING TALKS WOULD SUCCEED PERHAPS BY CREDITORS AGREEING TO CONVERT SOME OF THEIR CREDITS OUTSTANDING INTO EQUITY SOME ANALYSTS ALSO EXPECT ADDITIONAL ASSET SALES BY NORSK DATA 9302090124 930209 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RESTRUCTURING THE CRISISRIDDEN STEEL INDUSTRY IN THE EUROPEAN COMMUNITY COULD COST STEELMAKERS AND TAXPAYERS MORE THAN 6 BILLION EUROPEAN CURRENCY UNITS 706 BILLION AN EC STUDY FOUND EUROPEAN STEELMAKERS ARE WILLING TO CONSIDER DRASTIC CAPACITY CUTS OF AS MUCH AS 258 MILLION TONS OF CRUDE STEEL AND 179 MILLION TONS OF ROLLED PRODUCTS THE REPORT TO THE EC COMMISSION SAID BUT LAYING OFF ABOUT 50000 WORKERS AND CLOSING BIG MILLS WILL COST AT LEAST 25 BILLION ECUS IN EMPLOYEE PAYMENTS AND 35 BILLION ECUS IN INDUSTRIAL COSTS A BILL THAT THE UNPROFITABLE STEELMAKERS CAN'T FOOT ALONE THE FINDINGS ARE LIKELY TO INTENSIFY THE PRESSURE ON THE EC AND ITS MEMBER GOVERNMENTS TO FORK OVER MONEY TO RESCUE THE STEEL INDUSTRY WHICH IS FACING ITS SHARPEST JOB LOSSES IN 10 YEARS BECAUSE OF SHRINKING MARKETS AND COLLAPSING PRICES THE INDUSTRY ALSO IS LIKELY TO USE THE STUDY TO INCREASE PRESSURE ON THE EC TO PROTECT ITS STEEL COMPANIES AGAINST COMPETITION FROM LOWPRICE IMPORTS FROM EASTERN EUROPE AND TO FIGHT BACK AGAINST US ANTIDUMPING LEVIES ESSENTIALLY CLOSING THE US MARKET TO EUROPEAN STEEL DUMPING IS THE PRACTICE OF SELLING ABROAD FOR LESS THAN DOMESTIC PRICES TO GAIN MARKET SHARE PRIVATE BUSINESSES IN CHINA GREW APACE LAST YEAR THE CHINA BUSINESS TIMES SAID THEIR COMBINED OUTPUT WAS VALUED AT ABOUT 11313 BILLION YUAN 1937 BILLION UP 29 FROM A YEAR EARLIER AN ENTREPRENEURIAL CLASS HAS SPRUNG UP ACROSS CHINA IN RECENT YEARS ENCOURAGED BY CAPITALISTSTYLE REFORMS PRIVATE ENTERPRISES WITH SEVEN OR FEWER WORKERS HAD TOTAL EMPLOYMENT OF 247 MILLION UP 93 FROM 1991 THE WORK FORCE AT FIRMS WITH AT LEAST EIGHT EMPLOYEES TOTALED 23 MILLION UP 26 THE CZECH AND SLOVAK REPUBLICS BEGAN USING SEPARATE CURRENCIES WITH THE SAME NAME THE KORUNA INITIALLY TRADING AT PAR COMMERCIAL BANKS AND CURRENCYEXCHANGE OFFICES WILL SET THE RATE ACCORDING TO SUPPLY AND DEMAND THE NEW CURRENCIES WENT INTO CIRCULATION AFTER THE CZECH AND SLOVAK GOVERNMENTS AGREED LAST WEEK TO END THEIR MONTHOLD MONETARY UNION THAT FOLLOWED THE DISSOLUTION OF THE CZECHOSLOVAK FEDERATION JAN 1 TOURISTS CROSSING THE NEW BORDER WHERE CUSTOMS HAVE TIGHTENED MAY CARRY 7500 NEW KORUNA 259 IN CASH AND UNLIMITED SUMS IN TRAVELER'S CHECKS FOOD MAKERS HAVE SUCCESSFULLY USED BRITISH TELEVISION TO CHANGE THE WAY CHILDREN IN THE COUNTRY EAT A CONSUMERS' ASSOCIATION REPORT SAID TV ADS FOR FATTY SUGARY FOODS FAR OUTNUMBERED HEALTHY EATING MESSAGES AND THESE HEAVILY ADVERTISED PRODUCTS MADE UP A LARGE PART OF THE AVERAGE CHILD'S DIET THE REPORT SAID A CHILD WHO WATCHED BRITISH COMMERCIAL TV FOR AN HOUR AFTER SCHOOL AND ON SATURDAY MORNINGS SAW 92 FOOD AND BEVERAGE ADS A WEEK OR A RATE OF ABOUT 10 AN HOUR BRITISH COMPANIES SPENT ABOUT 660 MILLION ADVERTISING FOOD AND SOFT DRINKS ON TV IN 1990 RUSSIA PLANS TO BECOME A FORCE AGAIN IN THE WORLD'S ARMS MARKETS SERVING OLD ALLIES AND SEEKING NEW CUSTOMERS DEFENSE INDUSTRY OFFICIALS SAID LAST YEAR RUSSIA EXPORTED 4 BILLION OF ARMS THE FORMER SOVIET UNION'S WEAPONS DELIVERIES TOTALED 11 BILLION A YEAR BY OBSERVING A UNITED NATIONS EMBARGO AGAINST YUGOSLAVIA AND LIBYA RUSSIA HAS LOST OUT ON 75 BILLION OF ARMS SALES SAID VIKTOR GLUKHIKH CHAIRMAN OF THE COMMITTEE FOR DEFENSE INDUSTRIES SERGEI KARAOGLANOV HEAD OF THE ARMSEXPORT MONOPOLY OBORONOEXPORT SAID THE NEW SALES EFFORTS AREN'T INTENDED TO UPSET REGIONAL MILITARY BALANCES OR PROMOTE POTENTIAL AGGRESSION EUROPEAN COMMUNITY TRADE MINISTERS AGREED TO LET CUSTOMS AGENTS BLOCK UNSAFE PRODUCTS FROM BEING IMPORTED INTO THE TRADE BLOC STARTING NEXT MONTH IF A TOY PHARMACEUTICAL OR FOOD SHIPMENT DOESN'T HAVE DOCUMENTS ON COMPLIANCE WITH EC HEALTH AND SAFETY STANDARDS A CUSTOMS OFFICER MAY REFER THE PRODUCT TO NATIONAL HEALTH OFFICIALS TO DETERMINE SAFETY RISKS IN THE EC'S SINGLE MARKET THAT TOOK EFFECT JAN 1 CUSTOMS CHECKS WITHIN THE BLOC WERE ABOLISHED THE JAPANESE GOVERNMENT PROPOSED LEGISLATION CALLING FOR ENERGY CONSERVATION RECYCLING AND USE OF CLEAN ENERGY COMPANIES THAT PROMOTE CONSERVATION OUTLAYS AND PROJECTS SUCH AS RECYCLING WOULD GET FINANCIAL BENEFITS INCLUDING LOWINTEREST LOANS SUBSIDIZED INTEREST PAYMENTS AND TAX EXEMPTIONS JAPAN'S GOVERNMENT WITH THE AID OF THE NEW ENERGY DEVELOPMENT ORGANIZATION WOULD DEVELOP AND INTRODUCE CONSERVATION TECHNOLOGIES AS PART OF A LARGER CONSERVATION PLAN GOVERNMENT MINISTRIES HAVE PROPOSED SPENDING OF 87 BILLION YEN 699 MILLION ON CONSERVATION PROJECTS IN THE THE FISCAL YEAR ENDING MARCH 31 UP 60 FROM THE YEAREARLIER BUDGET THE MEASURES ALSO CALL FOR JAPAN TO PROVIDE HELP GLOBALLY AND PARTICULARLY IN THE ASIAPACIFIC REGION IN AREAS SUCH AS TECHNOLOGY TO REMOVE SULFUR FROM COAL SOUTH KOREA AND CHINA BEGAN THEIR FIRST REGULARLY SCHEDULED AIRLINE SERVICE BEIJING A LONGTIME ALLY OF NORTH KOREA ESTABLISHED DIPLOMATIC RELATIONS WITH SEOUL LAST AUGUST NORWAY'S 10OERE 14 US CENT COIN WILL CEASE TO BE LEGAL TENDER MARCH 1 WHEN THE SMALLEST DENOMINATION OF COINS IN CIRCULATION WILL BE 50 OERE THE 25OERE COIN WAS ABOLISHED IN 1984 9302090123 930209 POLITICS & POLICY CLINTON'S CHOICE FOR A TOP ENERGY JOB HOLDS SENIOR POST AT COMPANY WITH TIES TO LIBYA IRAQ BY ROBERT S GREENBERGER AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AT A TIME WHEN THE CLINTON ADMINISTRATION SAYS IT WANTS TO STRENGTHEN INTERNATIONAL SANCTIONS AGAINST LIBYA IT'S ABOUT TO NAME A TOP OFFICIAL AT THE ENERGY DEPARTMENT WHO HAS SPENT HALF A DOZEN YEARS IN A SENIOR JOB AT A MAVERICK OIL COMPANY THAT MANEUVERED TO GET AROUND THOSE SANCTIONS MICHAEL BEATTY WHO ENERGY DEPARTMENT OFFICIALS SAY IS ABOUT TO BE NAMED DEPUTY TO ENERGY SECRETARY HAZEL O'LEARY IS GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT OF COASTAL CORP WHICH HAS HAD CLOSE BUSINESS TIES WITH OUTLAW STATES SUCH AS LIBYA AND IRAQ CRITICS SAY THOSE RELATIONS VIOLATE THE SPIRIT IF NOT THE LETTER OF US POLICIES AND A GRAND JURY IN HOUSTON IS INVESTIGATING THE COMPANY'S DEALINGS WITH LIBYA NO ONE IS CHARGING MR BEATTY WITH WRONGDOING BUT MANY FEAR HIS APPOINTMENT CREATES A SERIOUS PERCEPTION PROBLEM FOR THE ADMINISTRATION EVEN BEFORE HIS NOMINATION IS ANNOUNCED REPUBLICAN STAFF AIDES TO THE SENATE ENERGY AND NATURAL RESOURCES COMMITTEE ARE DIGGING INTO REPORTS ABOUT COASTAL'S INVOLVEMENT WITH LIBYA AND IRAQ AND MR BEATTY WHO WAS AN ADVISER AND STRONG POLITICAL SUPPORTER OF PRESIDENT CLINTON IS EXPECTED TO BE QUESTIONED ABOUT HIS ROLE IN THE COMPANY AT HIS CONFIRMATION HEARING MR BEATTY'S ROLE IN THE LIBYA MATTER IS UNCLEAR BUT COASTAL'S BLUNTTALKING CHAIRMAN OSCAR WYATT SAYS THAT THE COMPANY RELIED ON HIM FOR ADVICE ON EVERY CORPORATE MATTER THAT CAME UP A COASTAL SPOKESMAN SAID MR BEATTY WASN'T AVAILABLE TO COMMENT IN 1986 THE REAGAN ADMINISTRATION CITING LIBYA'S EXTENSIVE ROLE IN INTERNATIONAL TERRORISM IMPOSED SANCTIONS THAT BARRED MOST US COMMERCE WITH THE NORTH AFRICAN DICTATORSHIP COASTAL CORP MAINTAINS TIES WITH COL MOAMMAR GADHAFI'S REGIME THOUGH IT HASN'T BEEN CHARGED WITH BREAKING THE EMBARGO A COASTAL SPOKESMAN SAID THAT THROUGH A WHOLLY OWNED FOREIGN SUBSIDIARY COASTAL IS A MINORITY PARTNER IN A LIBYANCONTROLLED OIL REFINERY IN GERMANY THE OPERATION REFINES LIBYAN CRUDE OIL AND SKIRTS US SANCTIONS BY SHIPPING THE PRODUCTS TO PLACES OTHER THAN THE US SIMILARLY COASTAL HAS BOUGHT CRUDE OIL FROM IRAN DESPITE A US EMBARGO AND SHIPS THE OIL TO FOREIGN MARKETS IN A 1984 FILING WITH THE SECURITIES AND EXCHANGE COMMISSION IN EXPLAINING WHY THE COMPANY HAD ESTABLISHED AN OFFSHORE SUBSIDIARY COASTAL SAID IT BELIEVED THAT BY SETTING UP THE FOREIGN SUBSIDIARY THE COMPANY MIGHT ENGAGE IN CERTAIN BUSINESS ACTIVITIES WHICH WERE UNAVAILABLE TO COASTAL CORP BECAUSE OF RESTRICTIONS IN UNITED STATES LAW MR BEATTY'S PRESENCE IN THE GOVERNMENT MAY COMPLICATE THE NEW ADMINISTRATION'S EFFORTS TO PRESS FOR FURTHER SANCTIONS AGAINST LIBYA WHICH REFUSES TO TURN OVER TWO INTELLIGENCE AGENTS SUSPECTED OF INVOLVEMENT IN THE 1988 BOMBING OF PAN AM FLIGHT 103 DURING THE CAMPAIGN MR CLINTON PLEDGED IN A LETTER TO THE VICTIMS' FAMILIES TO STRENGTHEN INTERNATIONAL SANCTIONS AND MAKE CLEAR TO TERRORISTS THAT SUCH COWARDLY ATTACKS ON INNOCENT CIVILIANS ARE UNACCEPTABLE AND WILL NOT BE TOLERATED HENRY SCHULER WHO USED TO WORK AS A CONSULTANT TO A US OIL COMPANY IN LIBYA AND WHO FAVORS TOUGHER SANCTIONS WARNS THAT THE EUROPEANS ARE GOING TO TAKE THIS APPOINTMENT AS A SIGNAL THAT THE US ISN'T SERIOUS ABOUT WANTING TO PUT A REAL TIGHT EMBARGO ON LIBYAN OIL MOREOVER SOME EUROPEAN COUNTRIES MORE DEPENDENT ON IMPORTED OIL THAN THE US HAVE BEEN RELUCTANT TO GO ALONG WITH SANCTIONS FROM THE BEGINNING EVEN THOSE WHO STOP SHORT OF CRITICIZING MR BEATTY'S EMPLOYMENT AT COASTAL DON'T OFFER ENTHUSIASTIC SUPPORT EITHER I'M PREPARED TO ASSUME THAT HE'S AN HONORABLE MAN AND HE CAN DO THE JOB AS DEPUTY SECRETARY IRRESPECTIVE OF HAVING WORKED FOR COASTAL SAYS GRENVILLE GARSIDE FORMER DEMOCRATIC STAFF DIRECTOR OF THE SENATE ENERGY COMMITTEE AND A WASHINGTON ENERGY LAWYER MR GARSIDE SAYS HE'S MORE CONCERNED THAT MR BEATTY LACKS EXPERIENCE IN NUCLEAR WEAPONS CLEANUP THE ARRANGEMENT WITH THE LIBYANS HAS BEEN THE SUBJECT OF A LONG INVESTIGATION BY THE US CUSTOMS SERVICE WHICH IS TRYING TO DETERMINE WHETHER THE GERMAN OIL REFINERY VIOLATED THE US EMBARGO LEON GUINN CUSTOMS SPECIAL AGENT IN HOUSTON SAID LAST WEEK THAT THE MATTER HAS BEEN BEFORE A GRAND JURY FOR SOME TIME COASTAL'S CHAIRMAN MR WYATT ALSO MAINTAINS CLOSE TIES WITH SADDAM HUSSEIN AFTER IRAQ'S AUGUST 1990 INVASION OF KUWAIT HE ANGERED US OFFICIALS BY JOURNEYING TO BAGHDAD WITH JOHN CONNALLY THE FORMER TEXAS GOVERNOR WHO IS A COASTAL DIRECTOR MR WYATT THEN NEGOTIATED FOR THE RELEASE OF HOSTAGES BEING HELD BY SADDAM HUSSEIN INFURIATING US OFFICIALS WHO MAINTAINED AT THE TIME THAT THEY WOULDN'T NEGOTIATE THE HOSTAGE ISSUE WITH SADDAM HUSSEIN THE US IMPOSED SANCTIONS ON IRAQ AFTER ITS INVASION OF KUWAIT BUT SEVERAL COMPANIES INCLUDING COASTAL WERE PERMITTED TO TAKE DELIVERY OF OIL FROM IRAQ AND KUWAIT THAT HAD BEEN SHIPPED BEFORE THE INVASION HOWEVER COASTAL TRIED TO PUSH THIS TO THE LIMIT WHEN IT APPEALED UNSUCCESSFULLY TO US AND SAUDI OFFICIALS FOR PERMISSION TO TAKE POSSESSION OF A SHIPMENT OF IRAQI CRUDE OIL THAT WAS BEING STORED IN A SAUDI OIL TERMINAL SECRETARY O'LEARY IS SAID TO HAVE BEEN INITIALLY COOL TO MR BEATTY WHO WAS SENT TO HER BY THE WHITE HOUSE AT A NEWS CONFERENCE LAST WEEK MRS O'LEARY WOULDN'T CONFIRM OR DENY A REPORT THAT SHE HAD TOLD MR BEATTY ON FIRST MEETING HIM THAT HE WAS NOT HER FIRST CHOICE FOR DEPUTY MR BEATTY HAD BEEN ACTIVE IN THE CLINTON CAMPAIGN ACCORDING TO A COMPANY BIOGRAPHY HE WAS INSTRUMENTAL IN SPEARHEADING THE CLINTON ENERGY ENDORSEMENT EFFORT BRINGING TOGETHER 100 ENERGY COMPANIES THAT ENDORSED THE CLINTON/GORE TICKET HE SERVED AS AN ENERGY ADVISER DURING THE TRANSITION MR WYATT PRAISED MR BEATTY AS A HELL OF A HARD WORKER WHOSE APPOINTMENT WILL BE A HELL OF A LOSS TO THE CORPORATION AT COASTAL MR BEATTY SPENT MUCH OF HIS TIME DEFLECTING CRITICISM OF MR WYATT'S BUSINESS ETHICS AFTER WINNING A LANDMARK 549 MILLION CIVIL JUDGMENT FROM AN OCCIDENTAL PETROLEUM CORP UNIT FOR INSTANCE MR BEATTY CHARACTERIZED THE OPPOSITION'S STRATEGY AS AN ATTEMPT TO TRY OSCAR WYATT 9302090122 930209 DIVIDEND NEWS PITNEY BOWES INC PITNEY BOWES INC STAMFORD CONN BOOSTED ITS QUARTERLY DIVIDEND TO 225 CENTS FROM 195 CENTS THE DIVIDEND IS PAYABLE MARCH 12 TO SHAREHOLDERS OF RECORD FEB 25 THE MAKER OF BUSINESS EQUIPMENT AND SUPPLIES AND PROVIDER OF FINANCIAL SERVICES HAD 1587 MILLION SHARES OUTSTANDING ON DEC 31 9302090121 930209 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON EVERY SCENE OF THIS ENCHANTED FABLE IS DENSE WITH MARVELOUS DETAIL IT'S THE STORY OF A TOUGH JEWISH LADY NAMED PEARL WHO FINDS MIDDLEAGED ROMANCE IN THE PERSON OF THE CHARMING ITALIAN PLAYED BY MR MASTROIANNI THIS WHIMSICAL TALE IS FIRMLY GROUNDED IN THE REALITY OF ORDINARY LIFE IN THE QUEENS NY OF 1969 THE YEAR THE METS WON THE WORLD SERIES AND A MAN WALKED ON THE MOON YOU COULD CALL THIS A COMINGOFMIDDLEAGE MOVIE THE STORY OF A SUCCESSFUL SOAPOPERA ACTRESS LEFT CRIPPLED WHEN A NEW YORK CITY TAXI HITS HER FORCED BY CIRCUMSTANCE TO RECONSIDER LIFE SHE GOES BACK HOME TO THE LOUISIANA BAYOU TO DO IT SHE FACES HER OWN HARD MEMORIES WITH THE NURSE SHE HIRES A WOMAN WITH HER OWN MUDDLED PAST TO CONTEND WITH WRITER AND DIRECTOR SAYLES HAS FILTERED ALL THIS THROUGH HIS OWN PARTICULAR URBAN WIT AND HAS COME UP WITH A FRESH KIND OF WOMAN'S PICTURE ONE THAT IS PERCEPTIVE AND ENTERTAINING MR MILLER WHO TRAINED AS A DOCTOR EXPLORES THE MYSTERIES OF MEDICAL RESEARCH AND THE PHILOSOPHICAL QUESTIONS IT RAISES THROUGH THE REALLIFE STORY OF LORENZO ODONE A YOUNG BOY STRICKEN WITH A RARE AND HORRIBLE DISEASE WITH GRIM UNSENTIMENTAL OBSESSIVENESS THE FILM FOLLOWS THE EFFORTS OF LORENZO'S PARENTS TO SAVE THEIR SON THIS IS A HARROWING FASCINATING STORY WITH OPERATIC PASSION AND CINEMATIC BEAUTY INDOCHINE COMBINES LOVE AND WAR TO TELL ITS STORY OF FOLLY FURY AND SUFFERING IN THE WANING DAYS OF FRENCH COLONIAL DOMINION IN SOUTHEAST ASIA IT ISN'T A SUBTLE PICTURE BUT IT IS ALWAYS ABSORBING UNABASHEDLY HITTING BIG EMOTIONAL CHORDS WITH ITS POINTCOUNTERPOINT OF IMPASSIONED POLITICAL EVENTS AND DOOMED LOVE WITH DOOMED LOVE ALMOST ALWAYS TAKING CENTER STAGE THE CRYING GAME FALLS OUTSIDE THE USUAL CATEGORIES IT'S A ROMANTIC MYSTERY THAT ISN'T A MYSTERY AND ISN'T A ROMANCE NOT IN ANY CONVENTIONAL SENSE DIRECTOR JORDAN IS A FABULIST WHO SEES NEW POSSIBILITIES IN THE FAMILIAR INDEED NOTHING IS FAMILIAR IN HIS HANDS THE MOVIE PERSISTENTLY UPENDS EXPECTATIONS WITHOUT INSULT AS IT PULLS YOU INTO A NETHERWORLD FILLED WITH YEARNING WHIMSY AND DANGER THIS IS A GOODNATURED HOMAGE TO THE SCIFI THRILLERS OF THE 1950S AND '60S SUCH AS THE TINGLER THE GENRE SPECIALIZED IN MUTANT BEINGS AND INVASIONS FROM BEYOND ALLOWING YOUNG AUDIENCES TO SOOTHE THEIR FEARS OF THE BIG ONE BY SCREAMING AT THE CREEPY CREATURES ONSCREEN MATINEE IS SET IN KEY WEST THE WEEKEND OF THE CUBAN MISSILE CRISIS AND THE WEEKEND A FICTIONAL SCIFI SCHLOCKMEISTER COMES TO TOWN THE MOST FUN COMES IN SNIPPETS OF FAKE HORROR FILMS SUCH AS MANT THE STORY OF A CREATURE THAT'S HALFMAN HALFANT ALL TERROR 9302090120 930209 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 59 DAYS 307 60 TO 89 DAYS 308 90 TO 119 DAYS 310 120 TO 149 DAYS 312 150 TO 179 DAYS 315 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 267 ONE MONTH 271 TWO MONTHS 275 THREE MONTHS 283 SIX MONTHS 3 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 309 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 301 60 DAYS 302 90 DAYS 303 120 DAYS 308 150 DAYS 312 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 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 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 9 JAPAN 450 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 757 60 DAYS 763 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 750 60 DAYS 759 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 287 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302090119 930209 GLOBEX TRADING SYSTEM APPROVED FOR USE IN JAPAN CHICAGO THE GLOBEX AFTERHOURS FUTURES TRADING SYSTEM HAS BEEN CLEARED FOR TRADING IN JAPAN THE JAPANESE FINANCE MINISTRY APPROVED PLACEMENT OF GLOBEX COMPUTER TRADING TERMINALS IN ITS COUNTRY A MOVE THAT SOME TRADERS THINK COULD HELP TO BOOST SLUGGISH TRADING VOLUME ON THE GLOBEX SYSTEM THE GLOBEX SYSTEM WHICH IS RUN IN PARTNERSHIP BY THE CHICAGO MERCANTILE EXCHANGE CHICAGO BOARD OF TRADE AND REUTERS HOLDINGS PLC IS INTENDED TO LINK TRADERS THROUGHOUT THE WORLD IN A SINGLE COMPUTERIZED TRADING NETWORK THE MERC AND CBOT LIST THEIR MOST POPULAR INTERESTRATE AND CURRENCY FUTURES CONTRACTS FOR PURCHASE AND SALE ON THE SYSTEM ABOUT 200 TRADING TERMINALS ARE NOW AVAILABLE FOR TRADING IN LONDON PARIS CHICAGO AND NEW YORK BUT SO FAR TRADING HAS AVERAGED ONLY ABOUT 3000 CONTRACTS A DAY NOW REUTERS WILL BEGIN INSTALLING 28 GLOBEX TERMINALS ORDERED BY FIRMS IN JAPAN OTHER PLANNED GLOBEX EXPANSIONS INCLUDE THE LAUNCH OF CONTRACTS BASED ON FRENCH SECURITIES TRADED BY THE PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE FUTURES EXCHANGE AND THE ADDITION OF ABOUT 50 TERMINALS IN EUROPEAN AND ASIAN CITIES 9302090118 930209 FINANCING BUSINESS DOMONION BANKSHARES CORP DOMINION BANKSHARES CORP ROANOKE VA SAID IT WILL REDEEM ON MARCH 8 ITS 85 MILLION OF OUTSTANDING 7 3/4 DEBENTURES DUE 1996 THE DEBENTURES WILL BE REDEEMED AT 100 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE BANKING COMPANY IS BEING ACQUIRED BY A UNIT OF FIRST UNION CORP CHARLOTTE NC 9302090117 930209 MARKETING & MEDIA PEPSICO'S FRITOLAY PLANS VENTURE WITH TACO BELL PLANO TEXAS FRITOLAY INC SAID IT WILL BEGIN TEST MARKETING A NEW LINE OF MEXICAN FOOD UNDER THE TACO BELL BRAND NAME IN SUPERMARKETS IN MAY THE MOVE IS AN UNUSUAL JOINT VENTURE BY FRITOLAY AND TACO BELL WHICH ARE UNITS OF PEPSICO INC THE NEW PRODUCTS ARE A FIRST STEP BY FRITOLAY TO BRANCH OUT FROM ITS USUAL SALTY SNACKS POTATO CHIPS CORN CHIPS AND DORITOS THE TACO BELL PRODUCTS WILL INCLUDE TACO SHELLS SEASONING MIX REFRIED BEANS AND SALSA FRITOLAY SAID IT WILL BEGIN DISTRIBUTING THE PRODUCTS IN MAY TO AN INITIAL TEST MARKET OF MORE THAN 1000 SUPERMARKETS IN ATLANTA COLUMBUS CINCINNATI AND DAYTON OHIO EVENTUALLY TACO BELL HOPES TO SELL THE PACKAGED LINE IN ITS RESTAURANTS THIS ISN'T THE FIRST TIME THAT BRAND NAMES USUALLY ASSOCIATED WITH A RESTAURANT HAVE ENDED UP IN THE SUPERMARKET BOB EVANS FARMS SAUSAGE AND WHITE CASTLE HAMBURGERS ARE SOLD IN FREEZER CASES BUT IT IS UNUSUAL FOR A FAST FOOD COMPANY TO MARKET AN ENTIRE LINE THAT INCLUDES PRODUCTS NOT SOLD IN ITS RESTAURANTS MEXICAN FOOD IS CURRENTLY A FRAGMENTED BUT PROFITABLE GROCERY CATEGORY WITH SALES OF ABOUT 22 BILLION A YEAR 9302090116 930209 FINANCING BUSINESS TRANS RESOURCES INC TRANS RESOURCES INC NEW YORK SAID IT WITHDREW PLANS FILED LAST MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2003 ABOUT 735 MILLION OF PROCEEDS FROM THE OFFERING WOULD HAVE BEEN USED TO RETIRE THE CHEMICAL COMPANY'S PUBLICLY TRADED 135 DEBENTURES COMPANY OFFICIALS WEREN'T IMMEDIATELY AVAILABLE TO EXPLAIN WHY THE OFFERING WAS WITHDRAWN 9302090115 930209 SALOMON LAUNCHES NEW UNIT TO TRADE DERIVATIVE PRODUCTS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC IN ANOTHER BID TO RECAPTURE BUSINESS IT LOST BECAUSE OF ITS TREASURY AUCTIONBIDDING SCANDAL LAUNCHED A SPECIAL UNIT TO TRADE STOCK BOND AND CURRENCY SWAPS AND OTHER DERIVATIVE PRODUCTS TRADING IN THE 4 TRILLION DERIVATIVES MARKET PARTICULARLY IN INTERESTRATE AND CURRENCY SWAPS AND SWAP OPTIONS HAS BECOME A CASH COW FOR WALL STREET'S BIG INVESTMENT BANKS DERIVATIVES ARE HYBRID CUSTOMIZED SECURITIES THAT MOVE IN RELATION TO AN UNDERLYING INDEX STOCK BOND CURRENCY OR COMMODITY BUT SALOMON LARGELY HAS BEEN SHUT OUT OFTHE ACTION IN THE DERIVATIVES MARKET BECAUSE ITS CREDIT RATINGS WERE DOWNGRADED AFTER THE 1991 TREASURYAUCTION SCANDAL A STELLAR CREDIT RATING IS CRUCIAL IN THE DERIVATIVES MARKET MANY MULTINATIONAL CORPORATIONS WON'T DEAL WITH WALL STREET DEALERS WITH LOWER THAN TRIPLEA RATINGS MERRILL LYNCH & CO AND GOLDMAN SACHS & CO EACH HAVE LAUNCHED SEPARATE DERIVATIVES UNITS TO SNARE A TRIPLEA RATING SALOMON'S OWN CREDIT RATINGS HAVEN'T BEEN UPGRADED ITS LONGTERM DEBT STILL IS RATED AT SINGLEA3 BY MOODY'S INVESTORS SERVICE INC LOWER THAN THAT OF MERRILL OR GOLDMAN BUT SALOMON PERSUADED MOODY'S AND OTHER CREDITRATING AGENCIES TO GRANT ITS DERIVATIVES UNIT A TRIPLEA RATING BY INCLUDING FEATURES THAT WILL HELP OFFSET THE DANGER OF DEFAULT SAYS RICHARD STUCKEY COHEAD OF SALOMON'S BONDDERIVATIVES OPERATIONS AMONG THOSE FEATURES IS THE SALOMON UNIT'S FLEXIBLE CAPITAL STRUCTURE THE UNIT SALOMON SWAPCO INC INITIALLY WILL HAVE 175 MILLION OF CAPITAL THOUGH THAT'S ONLY HALF THAT OF THE MERRILL DERIVATIVES UNIT'S SALOMON HAS AGREED TO PROVIDE MORE CAPITAL AS NEEDED DEPENDING ON THE SIZE OF SALOMON SWAPCO'S DERIVATIVES EXPOSURE TO SNATCH A TRIPLEA CREDIT RATING SALOMON ALSO WAS REQUIRED TO OVERCAPITALIZE THE DERIVATIVES SUBSIDIARY THAT IS THE PARENT WILL PROVIDE MORE COLLATERAL THAN IS NEEDED TO BACK UP THE DERIVATIVES TRANSACTIONS ENTERED INTO BY SALOMON SWAPCO THE AMOUNT OF THE COLLATERAL DEPENDS ON THE NATURE AND VOLATILITY OF THE EXPOSURE IF SALOMON EVER SHOULD ENTER BANKRUPTCY PROCEEDINGS OR ITS CREDIT PICTURE DETERIORATES OR IF SALOMON SWAPCO'S CAPITAL ERODES SALOMON SAYS IT HAS AGREED TO QUICKLY SETTLE IN CASH ITS DERIVATIVES CONTRACTS AT MIDMARKET VALUE LEAVING ITS CLIENTS FREE TO SET SIMILAR CONTRACTS WITH OTHER DEALERS FOR WALL STREET INVESTMENT BANKS DERIVATIVES INCREASINGLY HAVE BECOME IMPORTANT IN STRUCTURING NEW STOCK AND BOND ISSUES IN MANY BOND UNDERWRITINGS FOR INSTANCE ISSUERS OFTEN OPT TO SWAP BONDS TO A FLOATINGRATE FEATURE FROM FIXEDRATE OR SHIFT OUT OF DOLLARDENOMINATED BONDS INTO OTHER CURRENCIES ABOUT ONETHIRD OF ALL UNDERWRITING TRANSACTIONS EVENTUALLY GET SWAPPED SAYS MR STUCKEY 9302090114 930209 WHO'S NEWS GEORGIAPACIFIC CORP GEORGIAPACIFIC CORP ATLANTA LEE M THOMAS 48 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT ENVIRONMENTAL AND GOVERNMENT AFFAIRS MR THOMAS PREVIOUSLY SERVED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ENVIRONMENTAL GROUP SUBSIDIARY OF LAW COS GROUP A CLOSELY HELD ENGINEERING AND ENVIRONMENTAL SERVICES CONCERN IN ATLANTA 9302090113 930209 CORRECTIONS & AMPLIFICATIONS TREASURY BOND NOTE AND BILL LISTINGS IN YESTERDAY'S EDITIONS WERE A REPEAT OF THURSDAY'S QUOTES NOT FRIDAY'S PRICES BEVERLY ENTERPRISES INC IS APPEALING A RULING BY THE NATIONAL LABOR RELATIONS BOARD THAT IT VIOLATED FEDERAL LABOR LAW IN CONNECTION WITH A UNION ORGANIZING DRIVE A STATEMENT BY A COMPANY SPOKESMAN THAT 15 TO 20 EMPLOYEES MAY BE REINSTATED UNDER THE RULING AS REPORTED IN AN ARTICLE YESTERDAY WOULD APPLY ONLY IF THE APPEAL FAILED 9302090112 930209 DIVIDEND NEWS AMERICAN BARRICK RESOURCES CORP AMERICAN BARRICK RESOURCES CORP TORONTO SAID IT WILL RAISE ITS SEMIANNUAL DIVIDEND BY 23 THE GOLD MINING CONCERN ALSO SAID IT PLANS A 2FOR1 STOCK SPLIT THE NEW SHARES WILL BE ISSUED ON MARCH 1 TO SHAREHOLDERS OF RECORD FEB 19 THE COMPANY ALSO DECLARED A SEMIANNUAL DIVIDEND OF FOUR US CENTS ON THE SPLIT SHARES TO BE PAID JUNE 15 TO SHAREHOLDERS OF RECORD MAY 31 THE COMPANY PREVIOUSLY PAID A DIVIDEND OF 65 CENTS ON THE PRESPLIT SHARES 9302090111 930209 WHO'S NEWS BLOCKBUSTER ENTERTAINMENT CORP BLOCKBUSTER ENTERTAINMENT CORP FORT LAUDERDALE FLA JAMES L HILMER 48 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER FOR THE VIDEO RETAILER MR HILMER MOST RECENTLY SERVED AS A MANAGING PARTNER AT WHITTLE COMMUNICATIONS IN KNOXVILLE TENN THE CHIEF MARKETING POST WAS LAST HELD IN 1991 BY THOMAS GRUBER WHO REMAINS SENIOR VICE PRESIDENT 9302090110 930209 WHO'S NEWS CURTICEBURNS FOODS INC CURTICEBURNS FOODS INC ROCHESTER NY J WILLIAM PETTY 60YEAROLD EXECUTIVE VICE PRESIDENT OF THIS FOOD PROCESSING CONCERN WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING DAVID J MCDONALD WHO WILL RETIRE MARCH 8 AT AGE 65 DONALD PEASE AN OUTSIDE DIRECTOR REMAINS CHAIRMAN 9302090109 930209 WHO'S NEWS WEST POINTPEPPERELL INC WEST POINTPEPPERELL INC WEST POINT GA KEITH B STEIN 35 YEARS OLD WAS NAMED GENERAL COUNSEL OF THIS TEXTILE COMPANY MR STEIN WHO MOST RECENTLY WORKED AS AN ATTORNEY WITH WEIL GOTSHAL & MANGES IN NEW YORK SUCCEEDS NINETTE S BRAGG 63 WHO RESIGNED LAST YEAR MR STEIN ALSO WILL SERVE AS GENERAL COUNSEL FOR VALLEY FASHIONS CORP A NEW YORK HOLDING COMPANY THAT OWNS 95 OF WEST POINTPEPPERELL 9302090108 930209 FINANCING BUSINESS DR PEPPER/SEVENUP COS DR PEPPER/SEVENUP COS THIS SOFTDRINK COMPANY SAID IT WILL USE 2086 MILLION FROM ITS RECENTLY COMPLETED INITIAL PUBLIC OFFERING TO REDEEM ITS PREFERRED STOCK AND AN ISSUE OF 115 SENIOR SUBORDINATED DISCOUNT NOTES DUE 2002 ALL 1999953 SHARES OF THE PREFERRED WILL BE REDEEMED FRIDAY AT 4919 A SHARE INCLUDING 2419 FOR ACCRUED OR UNPAID DIVIDENDS FROM MAY 19 1988 THE COMPANY SAID IT WILL REDEEM THE SENIOR NOTES AT 63560 FOR EACH 1000 PRINCIPAL AMOUNT INCLUDING 2228 IN ACCRUED INTEREST THE COMPANY RAISED 2835 MILLION IN THE IPO LAST MONTH THE REMAINDER ABOUT 749 MILLION WILL BE USED TO RETIRE BANK DEBT A SPOKESMAN SAID 9302090107 930209 YOUR MONEY MATTERS CHOOSING THE WRONG VARIABLE ANNUITY CAN BE COSTLY BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS ARE LEARNING THAT VARIABLE ANNUITIES ARE LIKE CELEBRITY MARRIAGES YOU BETTER KNOW WHAT YOU'RE GETTING INTO BECAUSE THE RELATIONSHIP CAN BE EXPENSIVE AND BREAKING UP CAN BE HARD TO DO TAKE EQUITABLE'S POPULAR EQUIVEST INTO WHICH INVESTORS POURED MORE THAN 800 MILLION LAST YEAR TOTAL ANNUAL EXPENSES CAN BE NEARLY 2 OF ASSETS ANNUALLY FURTHER INVESTORS WHO TAKE THEIR MONEY OUT BEFORE SIX YEARS HAVE PASSED HAVE TO FORK OVER 6 OF THE MONEY EQUIVEST INVESTORS MAY NOT MIND THE HIGH COST SINCE THEY HAVE ALSO ENJOYED ABOVEAVERAGE PERFORMANCE BUT NOT ALL INVESTORS ARE SO LUCKY MANY INDIVIDUALS BUY VARIABLE ANNUITIES THAT HAVE HIGHERTHANAVERAGE ANNUAL EXPENSES AND LOWERTHANAVERAGE RETURNS WHY DO THEY DO IT MOST INVESTORS ARE BLIND TO POTENTIAL DOWNSIDES OF VARIABLE ANNUITY CONTRACTS BECAUSE THEY'RE IN LOVE WITH THE TAX DEFERRAL ANNUITIES ARE ONE OF THE LAST TAX SHELTERS AROUND THANKS TO A MINUTE INSURANCE COMPONENT THESE CONTRACTS OFFER THE SAME TAX DEFERRAL AS PENSIONS AND INDIVIDUAL RETIREMENT ACCOUNTS YIELDSTARVED INVESTORS ARE ALSO ATTRACTED TO THE POSSIBILITY OF HIGHER RETURNS IN VARIABLE ANNUITIES WHICH ARE STRUCTURED LIKE MUTUAL FUND FAMILIES OR MANY 401K PLANS INVESTORS CAN ALLOCATE THEIR MONEY AMONG A HANDFUL OF STOCK AND BOND FUNDS THESE FUNDS HAVE HIGHER POTENTIAL RETURNS THAN CERTIFICATES OF DEPOSIT THE DUAL APPEAL OF HIGHER RETURNS AND TAX DEFERRAL DREW BILLIONS INTO VARIABLE ANNUITIES LAST YEAR INCREASING ASSETS BY NEARLY A THIRD TO ALMOST 100 BILLION BUT AN ANNUITY ISN'T SOMETHING INVESTORS SHOULD RUSH INTO LIGHTLY EVEN IF THE INVESTMENT PERFORMANCE IS DISAPPOINTING INVESTORS CAN'T JUST PACK UP THEIR PORTFOLIO AND LEAVE MOST ANNUITIES HAVE SURRENDER CHARGES THAT START AT 7 IN THE EARLY YEARS PHASING OUT OVER SEVEN YEARS OR SO IN ADDITION EARNINGS ON MONEY WITHDRAWN BEFORE AGE 59 1/2 ARE SUBJECT TO AN ADDITIONAL 10 TAX PENALTY AS WELL AS REGULAR INCOME TAXES ALL THIS MEANS THAT A VARIABLE ANNUITY IS A LONGTERM COMMITMENT SO A LITTLE COUNSELING IS IN ORDER BEFORE A CONTRACT IS SIGNED IN ADDITION TO CONSIDERING PERFORMANCE INVESTORS NEED TO COMPARE COSTS AND FEES INVESTORS SHOULD START BY LOOKING AT THE ANNUAL INSURANCE CONTRACT CHARGE FOR THE VARIABLE ANNUITY WHILE THE AVERAGE IS 125 ACCORDING TO MORNINGSTAR INC IT CAN VARY CONSIDERABLY FOR EXAMPLE MORNINGSTAR'S NUMBERS SHOW THE MOST EXPENSIVE INSURANCE CONTRACT CHARGE IS FOR PRINCIPAL PENSION BUILDER AT 150 ANNUALLY IN CONTRAST THE LEAST EXPENSIVE IS VANGUARD VARIABLE ANNUITY AT 055 WHY THE BIG DIFFERENCE WHILE THE INSURANCE CHARGE PAYS FOR ADMINISTRATION COSTS IF THE ANNUITY IS SOLD BY BROKERS OR INSURANCE AGENTS THE INSURANCE CHARGE MAY ALSO BE USED TO PAY FOR SOME OF THE COMMISSIONS MOST OF THE TOPSELLING VARIABLE ANNUITIES TEND TO HAVE HIGHERTHANAVERAGE INSURANCE CONTRACT CHARGES THESE INCLUDE HARTFORD PUTNAM CAPITAL MANAGER NORTH AMERICAN SECURITY VENTURE AND NORTH AMERICAN FRANKLIN VALMARK II EQUITABLE EQUIVEST HAS ANNUAL INSURANCE CONTRACT CHARGES OF 149 VANGUARD AND CHARTER/SCUDDER HORIZON WHICH ARE SOLD DIRECTLY TO INVESTORS RATHER THAN BY BROKERS HAVE THE LOWEST INSURANCE CONTRACT CHARGES IT'S IMPORTANT TO CONSIDER THE INSURANCE CONTRACT CHARGE SINCE IT WILL OFFSET OR EVEN EXCEED THE BENEFITS OF TAX DEFERRAL OVER THE FIRST DECADE OR SO THE HIGHER THE CHARGE THE LONGER IT WILL TAKE FOR THE BENEFIT OF TAX DEFERRAL TO KICK IN SAYS ROBERT KLEIMAN A PROFESSOR OF FINANCE AT OAKLAND UNIVERSITY IN ROCHESTER MICH ASSUMING A 10 ANNUAL RETURN AND 100 TURNOVER IN THE PORTFOLIO HE CALCULATES THAT IT WILL TAKE 13 YEARS BEFORE AN ANNUITY WITH ANNUAL INSURANCE CONTRACT CHARGES OF 149 BREAKS EVEN WITH A COMPARABLE INVESTMENT WITHOUT THE TAX DEFERRAL IF THE INSURANCE CONTRACT CHARGES ARE 140 IT WILL TAKE 11 YEARS TO BREAK EVEN IN CONTRAST AN ANNUITY WITH ANNUAL INSURANCE CONTRACT CHARGES OF 055 WILL BREAK EVEN AT THE END OF TWO YEARS BUT THE INSURANCE CONTRACT CHARGE ISN'T THE WHOLE STORY INVESTORS ALSO NEED TO CONSIDER THE COST OF THE VARIABLE ANNUITY'S UNDERLYING STOCK AND BOND FUNDS LIKE MUTUAL FUNDS THESE SUBACCOUNTS HAVE ANNUAL EXPENSES THAT PAY FOR THE MANAGEMENT OF THE MONEY AND THE ROUTINE COSTS OF RUNNING THE PORTFOLIO KNOWING WHAT THE AVERAGE IS CAN HELP YOU TELL IF THE FUNDS IN YOUR CONTRACT ARE MORE EXPENSIVE OR LESS THAN THE AVERAGES EQUITABLE'S EQUIVEST WITH ITS STEEP 149 ANNUAL INSURANCE CONTRACT CHARGE HAS BARGAIN BASEMENT RATES ON ITS UNDERLYING FUNDS ITS STOCK FUND CHARGES 040 ANNUALLY VERSUS AN AVERAGE OF 069 ACCORDING TO MORNINGSTAR WHEN YOU ADD THE INSURANCE CHARGE AND THE STOCK FUND EXPENSE THEY TOTAL 189 A YEARLOWER THAN THE AVERAGE TOTAL OF 194 AMERICAN SKANDIA LIFEVEST HAS ANNUAL INSURANCE CONTRACT CHARGES OF 140 VERSUS THE AVERAGE OF 125 AND THE EXPENSES ON ITS FUNDS ARE WELL ABOVE AVERAGE MORNINGSTAR'S NUMBERS SHOW ITS INTERNATIONAL STOCK FUND COSTS 250 ANNUALLY VERSUS AN AVERAGE OF 096 ITS GROWTH AND INCOME FUND IS 179 VERSUS 068 THIS BRINGS THE TOTAL EXPENSES TO 390 FOR ITS INTERNATIONAL STOCK FUND AND TO 319 FOR ITS GROWTHANDINCOME FUND IT IS CRUCIAL FOR INVESTORS TO BE ALERT TO BOTH COSTS SINCE MANY SALESPEOPLE FORGET TO POINT THEM OUT AND MANY SHOW PER FORMANCE FIGURES WITHOUT TAKING INTO AC COUNT THE INSURANCE CONTRACT CHARGES IF YOU'RE SHOWN ONLY UNDERLYING FUND PERFORMANCE WHILE YOU HAVE AN IDEA OF HOW THE FUND BEHAVES YOU DON'T GET AN IDEA OF THE TOTAL RETURN IN THE CONTRACT SAYS JENNIFER STRICKLAND EDITOR OF MOR NINGSTAR'S VARIABLE ANNUITY REPORT THE FINAL FEE INVESTORS NEED TO CONSIDER IS THE BACKEND LOAD OR SALES FEE THAT MOST COMPANIES CALL A SURRENDER PENALTY THIS IS WHAT INVESTORS PAY IF THEY TAKE THEIR MONEY OUT BEFORE A CERTAIN NUMBER OF YEARS HAVE PASSED THE MONEY GOES TO PAY COMMISSIONS TO BROKERS FOR SELLING THE CONTRACTS THE AVERAGE IS 6 IN THE FIRST YEAR DECLINING TO ZERO OVER SEVEN YEARS OR SO IN MOST CONTRACTS THE SURRENDER CHARGE CLOCK STARTS EACH TIME AN INVESTOR PUTS MONEY IN NOT JUST WHEN THEY INVEST INITIALLY AGAIN THERE'S A WIDE RANGE FOR EXAMPLE THE SURRENDER CHARGE FOR MINNESOTA MUTUAL MULTIOPTION A STARTS AT 9 IN THE FIRST YEAR THEN DECLINES NINETENTHS OF A PERCENTAGE POINT ANNUALLY FOR 10 YEARS HANCOCK ACCOMMODATOR 2000 STARTS AT 85 IN YEAR ONE GOES TO 75 IN YEARS TWO TO FOUR AND DECLINES 1 PERCENTAGE POINTS ANNUALLY THROUGH YEAR SEVEN IN ADDITION IT CHARGES A 1 SALES LOAD OR INITIAL SALES FEE IN CONTRAST VANGUARD VARIABLE ANNUITY CHARTER/SCUDDER HORIZON AND MUTUAL OF AMERICA SEPARATE ACCOUNT 2 HAVE NO SURRENDER CHARGES BECAUSE THEY ARE SOLD DIRECTLY THE COMPANY DOESN'T NEED TO IMPOSE SURRENDER CHARGES TO PAY THE BROKERS' AND AGENTS' SALES COMMISSIONS BUT INVESTORS SHOULD BE AWARE THAT A FEW ANNUITIES WITH NO SURRENDER CHARGES INSTEAD CHARGE UPFRONT SALES FEES FRONTEND SALES CHARGES ARE 8 FOR HANCOCK ACCOMMODATOR U AND 9 OR 5 DEPENDING ON THE SUBACCOUNT FOR FRANKLIN LIFE B UNDERSTANDING COSTS CAN HELP INVESTORS MAKE SMART CHOICES WHEN THEY CHOOSE WHICH FUNDS TO INVEST IN TAKING TYPICAL VARIABLE ANNUITY COSTS INTO ACCOUNT FOR INSTANCE IT DOESN'T MAKE SENSE TO INVEST IN LOWRETURN BOND FUNDS OR IN MONEYMARKET FUNDS EVEN MOREAGGRESSIVE INVEST MENTS WITH THE POTENTIAL FOR HIGHER LONGTERM RETURNS MAY NOT BE A GOOD PLAY IF THE BASIC CHARGES OF THE VARIABLE ANNUITY ARE TOO HIGH FOR EXAMPLE SOME INTERNATIONAL FUNDS ARE SO EXPENSIVE THAT WHEN THE INSURANCE CONTRACT CHARGE IS ADDED IN THE TOTAL ANNUAL EXPENSES APPROACH 4 IN CASES LIKE THAT YOU'D BE BETTER OFF GETTING INTERNATIONAL EXPOSURE OUTSIDE THE VARIABLE ANNUITY SAYS MS STRICKLAND INVESTORS SHOULD LOOK AT BOTH THE ANNUAL COST OF THE ANNUITY CONTRACT AND THE COST OF THE UNDERLYING FUNDS BY ADDING BOTH TOGETHER THEY CAN TELL HOW MUCH THE TOTAL COSTS ARE ANNUALLY AND WHETHER THESE ARE HIGHER THAN AVERAGE 9302090106 930209 SMALL BROKERDEALERS PROTEST SEC PLAN TO RAISE THEIR REQUIREMENTS ON CAPITAL BY RICHARD T SILVERMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A GRASSROOTS COLLECTION OF SMALL BROKERDEALERS IS TRYING TO CONVINCE THE SECURITIES AND EXCHANGE COMMISSION THAT A PROPOSAL TO RAISE NET CAPITAL REQUIREMENTS COULD PUT HUNDREDS OF REPUTABLE BROKERAGE FIRMS OUT OF BUSINESS IN NOVEMBER THREE YEARS AFTER IT FIRST SOUGHT COMMENT ON THE MATTER THE SEC INCREASED THE MINIMUM NET CAPITAL REQUIREMENT TO 250000 FROM 25000 FOR LARGER BROKERAGE FIRMS THAT CARRY CUSTOMER ACCOUNTS THE COMMISSION LEFT OPEN A RULING ON CAPITAL REQUIREMENTS FOR SOME OF THE SMALLER OR INTRODUCING BROKERAGE FIRMS BROKERAGE FIRMS ARE REQUIRED BY THE SEC TO MAINTAIN A MINIMUM AMOUNT OF CASH AND ASSETS THAT ARE EASILY CONVERTED INTO CASH TO ENSURE THAT INVESTORS ARE PROTECTED THE SEC NOW IS PROPOSING TO INCREASE THE MINIMUM CAPITAL REQUIREMENTS FOR MOST OF THE INTRODUCING BROKERS TO 25000 FROM THE CURRENT 5000 THE DEADLINE FOR COMMENT ON THE PROPOSAL PASSED FRIDAY THE SEC WILL NOW REVIEW THE COMMENTARY BEFORE RULING INTRODUCING BROKERS TAKE CUSTOMER ORDERS AND ACT MUCH LIKE SALESPEOPLE FOR CLEARING FIRMS WHICH PROCESS SECURITIES TRANSACTIONS AND USUALLY HOLD ON TO THE INVESTOR'S SECURITIES AND/OR CASH FOR INTRODUCING BROKERS THAT OCCASIONALLY CARRY CUSTOMERS' CASH OR SECURITIES THE PROPOSED SEC NETCAPITALREQUIREMENT INCREASE IS TO 50000 FROM 5000 THE SMALL FIRMS CLAIM THAT THE INCREASED REQUIREMENTS EVEN THOUGH THEY WOULD BE PHASED IN OVER TIME WOULD PUT COSTS AT A PROHIBITIVELY HIGH LEVEL FOR THEM THE PROPOSED INCREASE IS SUPPORTED BY THE NEW YORK STOCK EXCHANGE THE SECURITIES INDUSTRY ASSOCIATION AND THE AMERICAN BAR ASSOCIATION AMONG OTHERS ALSO SUPPORTING THE PROPOSALS IS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH IS PARTICULARLY UPSETTING FOR THE SMALL BROKERDEALERS ALL OF WHOM ARE MEMBERS OF THE NASD THE BROKERDEALERS COMPLAIN THAT THE NASD A MEMBERSHIP ORGANIZATION GAVE ITS STRONG SUPPORT FOR THE PROPOSALS WITHOUT A VOTE IT'S AN ACT OF POLITICAL COWARDICE SAID ALAN DAVIDSON PRESIDENT OF ZEUS SECURITIES IN JERICHO NY THE SEC IS KOWTOWING TO THE LARGER FIRMS THE SEC DECLINED TO COMMENT NASD OFFICIALS WERE UNAVAILABLE FOR COMMENT MANY OF THE SMALL BROKERDEALERS WERE ALSO INSULTED BY COMMENTS BY THE SEC IMPLYING THAT THE BUSINESS NEEDED THE INCREASED CAPITAL REQUIREMENTS TO HELP RID ITSELF OF UNSAVORY PRACTITIONERS THERE'S NO OTHER INDUSTRY THAT I CAN THINK OF WHERE ETHICS ARE REGULATED BY CAPITAL MR DAVIDSON SAID SOME OF THE INTRODUCING BROKERS SAY THE HIGHER CAPITAL REQUIREMENTS WON'T HAVE ANY EFFECT ON THE RELATIVELY SMALL PERCENTAGE OF UNETHICAL PRACTITIONERS IN THEIR INDUSTRY 9302090105 930209 INTERNATIONAL JAPAN WARNS ABOUT USE OF FICTITIOUS CERTIFICATE' SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S FINANCE MINISTRY ISSUED A WARNING ABOUT THE DOMESTIC AND FOREIGN USE OF A FICTITIOUS CERTIFICATE THAT PERPETRATORS ARE FRAUDULENTLY SAYING COMES FROM THE MINISTRY THE FAKE CERTIFICATES WITH A FACE VALUE OF 10 BILLION YEN TO 500 BILLION YEN 804 MILLION TO 402 BILLION AND CALLED KANPUKIN ZANDAKA KAKUNINSHO CLAIM THAT THE MINISTRY WILL EXCHANGE THE AMOUNT SPECIFIED ON THE CERTIFICATES FOR AN EQUIVALENT AMOUNT OF JAPANESE GOVERNMENT BONDS THE MINISTRY SAID THE MINISTRY OF FINANCE HAS NEVER ISSUED SUCH KANPUKIN ZANDAKA KAKUNINSHO AND SUCH A CERTIFICATE COULD NEVER EXIST LEGALLY THE MINISTRY SAID SOME PERPETRATORS WHO TRIED TO GET MONEY BY USING THESE CERTIFICATES HAVE BEEN ARRESTED BY THE POLICE BUT THE FRAUDULENT USE OF THESE PHONY CERTIFICATES APPEARS TO BE INCREASING ESPECIALLY OVERSEAS THE MINISTRY SAID IN THE YEAR ENDED IN MARCH 1992 THE MINISTRY RECEIVED 63 INQUIRIES ABOUT THE CERTIFICATES AND SO FAR THIS FISCAL YEAR THERE HAVE BEEN 71 INQUIRIES INCLUDING 29 INQUIRIES FROM OVERSEAS UP FROM 19 LAST YEAR THE MINISTRY SAID 9302090104 930209 AMERITECH PROMOTES DROOK CHICAGO AMERITECH CORP NAMED GARY G DROOK A SENIOR VICE PRESIDENT AND SAID HE WILL BE RESPONSIBLE FOR DEVELOPING THE COMPANY'S BUSINESS UNITS THE REGIONAL BELL TELEPHONE COMPANY WHICH IS EXPECTED TO ANNOUNCE A REORGANIZATION OF ITS BUSINESS UNITS LATER THIS YEAR HAS MADE EXTENSIVE CHANGES IN ITS EXECUTIVE RANKS IN RECENT MONTHS MR DROOK 47 YEARS OLD WILL REPORT TO RICHARD NOTEBAERT WHO WAS RECENTLY NAMED A VICE CHAIRMAN CARL GRIVNER 39 WAS NAMED PRESIDENT OF AMERITECH PUBLISHING SUCCEEDING MR DROOK IN ADDITION THE COMPANY SAID ROBERT HURST 49 WILL BE RESPONSIBLE FOR ESTABLISHING THE COMPANY'S TELEPHONE NETWORK ORGANIZATION AND WILL CONTINUE AS PRESIDENT OF MICHIGAN BELL 9302090102 930209 TECHNOLOGY NIH WILL REVIEW SANDOZ'S PACT WITH USBACKED LAB WASHINGTON THE NATIONAL INSTITUTES OF HEALTH SAID IT WILL REVIEW THE ARRANGEMENT UNDER WHICH THE SWISS DRUG MAKER SANDOZ AG HAS BOUGHT RIGHTS TO MARKET DRUGS PRODUCED BY A US LABORATORY BACKED BY TAXPAYERS THE US SUBSIDIARY OF SANDOZ SANDOZ PHARMACEUTICALS CORP AGREED IN DECEMBER TO PAY SCRIPPS RESEARCH INSTITUTE 300 MILLION OVER 10 YEARS IN EXCHANGE FOR THE RIGHT TO MARKET THE LAB'S MEDICAL DISCOVERIES SCRIPPS BASED IN LA JOLLA CALIF RECEIVES ABOUT 75 OF ITS ANNUAL RESEARCH BUDGET OR NEARLY 100 MILLION FROM THE FEDERAL GOVERNMENT THE PACT TAKES EFFECT IN 1997 THE NIH ACTION COMES IN RESPONSE TO GROWING CONGRESSIONAL CONCERN OVER HIGH PRICES CHARGED BY DRUG COMPANIES FOR MEDICINES THAT TAXPAYER MONEY HELPED DEVELOP REP RON WYDEN D ORE SAID WHAT IS TROUBLESOME IS THAT ESSENTIALLY DRUG COMPANIES HAVE BEEN HARVESTING THE FRUITS OF TAXPAYERS' RESEARCH WITHOUT ANY FEDERAL OVERSIGHT THE NIH REVIEW WHICH IS STILL IN ITS BEGINNING STAGES MAY BE FOLLOWED BY A STUDY OF ALL MARKETING AGREEMENTS BETWEEN DRUG COMPANIES AND RESEARCH LABS THAT RECEIVE FEDERAL FUNDS IN A STATEMENT RELEASED YESTERDAY SANDOZ SAID IT KNEW THAT SCRIPPS RECEIVES FEDERAL FUNDS WE ARE ALSO AWARE OF OUR RESPONSIBILITIES AS TO THE PRICING OF ANY DRUGS THAT MAY EVENTUALLY BE COMMERCIALIZED AS A RESULT OF THE PACT WITH SCRIPPS THE SANDOZ STATEMENT SAID 9302090101 930209 BUSINESS BRIEF TIME WARNER EARNINGS INCREASED 51 TO 68 MILLION IN THE FOURTH QUARTER NEW YORK TIME WARNER INC SAID FOURTHQUARTER NET INCOME ROSE 51 TO 68 MILLION FROM 45 MILLION THE YEAR EARLIER AFTER PAYMENT OF PREFERRED DIVIDENDS HOWEVER THE MEDIA COMPANY POSTED A PERSHARE LOSS OF 25 CENTS A SHARE THE DIVIDEND PAYOUT WAS 161 MILLION WITH ABOUT 70 MILLION IN CASH AND THE REMAINDER IN PAYINKIND PREFERRED STOCK REVENUE INCREASED 10 TO 372 BILLION FROM 339 BILLION A YEAR EARLIER AFTER THE PAYOUT THE PERSHARE LOSS WAS 29 CENTS ACCORDING TO MEDIA INDUSTRY ANALYSTS THE RESULTS WERE IN LINE WITH EXPECTATIONS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TIME WARNER STOCK CLOSED AT 3450 A SHARE UNCHANGED TIME WARNER'S FIVE DIVISIONS REPORTED IMPROVED OPERATING PROFIT OR EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION MOST OF THE GAINS HOWEVER WERE SLIM THE CABLE UNIT SHOWED A 13 GAIN IN OPERATING PROFIT TO 255 MILLION FROM 225 MILLION OPERATING PROFIT IN MUSIC OPERATIONS ROSE 3 TO 196 MILLION FROM 191 MILLION IN PUBLISHING OPERATING PROFIT SHOWED A 65 GAIN TO 132 MILLION FROM 124 MILLION FILMED ENTERTAINMENT OPERATING PROFIT ROSE 22 TO 92 MILLION FROM 90 MILLION THE HOME BOX OFFICE PAYTV UNIT POSTED THE LARGEST GAIN WITH OPERATING PROFIT UP 19 TO 56 MILLION FROM 47 MILLION SUBSCRIPTIONS TO PAYTV SERVICES ROSE TO 237 MILLION FROM 236 MILLION DESPITE WHAT THE COMPANY SAID WAS A LOSS OF SEVERAL HUNDRED THOUSAND SUBSCRIBERS BECAUSE OF VARIOUS STORMS IN THE US IN 1992 THE COMPANY POSTED PROFIT OF 86 MILLION COMPARED WITH A LOSS OF 99 MILLION IN 1991 BUT A PREFERRED DIVIDEND PAYOUT OF 278 MILLION IN CASH AND 350 MILLION IN PAYINKIND PREFERRED STOCK RESULTED IN A LOSS OF 146 A SHARE IN 1991 AFTER THE DIVIDEND PAYOUT THE LOSS WAS 240 A SHARE THE YEAREARLIER FIGURES ARE ADJUSTED FOR A 4FOR1 STOCK SPLIT PAID IN SEPTEMBER REVENUE ROSE 87 TO 1307 BILLION FROM 1202 BILLION GERALD M LEVIN CHAIRMAN AND CHIEF EXECUTIVE NOTED THAT 1992 WAS THE FIRST YEAR OF PROFIT BEFORE DIVIDEND PAYOUTS FOR THE COMPANY SINCE THE MERGER OF TIME INC AND WARNER COMMUNICATIONS INC IN 1990 MR LEVIN ALSO NOTED THAT THIS YEAR TIME WARNER HAS ANNOUNCED THE REDEMPTION OF ALL SERIES D PREFERRED STOCK WHICH WILL SUBSTANTIALLY IMPROVE OUR COMMON SHARE RESULTS SINCE DECEMBER TIME WARNER HAS RAISED ABOUT 35 BILLION FROM VARIOUS DEBT OFFERS TO REDEEM PREFERRED SHARES 9302090100 930209 DART'S FISCAL 4THPERIOD SALES LANDOVER MD DART GROUP CORP SAID SALES FOR ITS FISCAL FOURTH QUARTER ROSE 5 PRIMARILY BECAUSE OF AN INCREASE IN STORES IN ITS SHOPPERS FOOD WAREHOUSE CHAIN SALES FOR THE QUARTER ENDED JAN 31 INCREASED TO 338 MILLION FROM 324 MILLION A YEAR EARLIER THE RETAIL HOLDING COMPANY SAID THAT ON A COMPARABLESTORE BASIS SHOPPERS FOOD SALES WERE DOWN 1 AND 2 RESPECTIVELY FOR THE QUARTER AND YEAR SALES FOR THE YEAR INCREASED TO 125 BILLION FROM 116 BILLION A YEAR EARLIER 9302090099 930209 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 CAROLINA POWER & LIGHT CO 150 MILLION ISSUE OF FIRST MORTGAGE BONDS WAS WON IN COMPETITIVE BIDDING BY LEHMAN BROTHERS THE 6125 BONDS WILL BE REOFFERED AT 9898 TO YIELD 6308 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE LEHMAN'S BID RESULTED IN A NET INTEREST COST TO THE COMPANY OF 6358 THE ISSUE IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP CARR REALTY CORP INITIAL OFFERING OF 68 MILLION COMMON SHARES WAS PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GROSS SPREAD IS 1375 SELLING CONCESSION IS 82 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 16 CATALYTICA INC INITIAL OFFERING OF THREE MILLION COMMON SHARES WAS PRICED AT 7 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GROSS SPREAD IS 49 CENTS SELLING CONCESSION IS 27 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY PHYSICAL IS SCHEDULED FOR FEB 16 STEWART ENTERPRISES INC OFFERING OF 25 MILLION CLASS A COMMON SHARES PRICED AT 25 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO STEWART IS SELLING 22 MILLION OF THE TOTAL 25 MILLION SHARES AND A PRINCIPAL STOCKHOLDER IS OFFERING THE REMAINING 300000 GROSS SPREAD IS 125 SELLING CONCESSION IS 75 CENTS AND REALLOWANCE IS 10 CENTS DELIVERY IS SCHEDULED FOR FEB 16 FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1993G11 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 8 MORTGAGE SECURITIES MASSACHUSETTS HOUSING FINANCE AGENCY 6381 MILLION 1993 SERIES AD HOUSING PROJECT REFUNDING AND REVENUE BONDS HAVE BEEN PRICED BY A GOLDMAN SACHS & CO GROUP THE OFFERING IS MAINLY COMPRISED OF 6229 MILLION SERIES A BONDS WHICH ARE PRICED TO YIELD FROM 340 IN 1994 TO 638 IN 2021 BONDS ARE PRICED TO YIELD 595 AND 630 FOR MOST SERIES A BONDS THERE ARE SEMIANNUAL MATURITIES OF APRIL 1 AND OCTOBER 1 SERIES A BONDS DUE IN 200105 2008 AND 2015 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE SECURITIES HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY BOTH S&P AND FITCH INVESTORS SERVICE INC THE 5 MILLION SERIES B BONDS ARE TAXABLE SECURITIES WHICH AREN'T FORMALLY REOFFERED THEY ARE DUE ON OCT 1 1993 THERE ARE ALSO 48 MILLION SERIES C BONDS WHICH ARE PRICED TO YIELD 340 ON APRIL 1 1994 AND 370 ON OCT 1 1994 THE 54 MILLION SERIES D BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX ARE PRICED TO YIELD 355 ON APRIL 1 1994 THE SERIES B C AND D BONDS HAVE ALL BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P AND FITCH REPUBLIC OF IRELAND SOVEREIGN 500 MILLION EUROBONDS DUE MARCH 10 2003 WITH A COUPON OF 6875 AT 101135 VIA DAIWA EUROPE LTD AND UBS PHILLIPS & DREW LTD REOFFERED AT 9946 TO YIELD 6952 A SPREAD OF 55 BASIS POINTS ABOVE THE WHENISSUED YIELD ON THE US GOVERNMENT ISSUE FEES 2 REPUBLIC OF FINLAND SOVEREIGN ECU 500 MILLION OF 8 EUROBONDS DUE MARCH 16 1998 AT AN ISSUE PRICE OF 101025 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9940 TO YIELD 815 ANNUALLY FEES 1875 EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 BILLION LIRA OF FLOATING RATE NOTES VIA ISTITUTO BANCARIO SAN PAOLO DI TORINO 200 BILLION LIRA OF NOTES DUE MARCH 5 1996 AT PAR WITH A FIXED FIRST COUPON OF 109375 COUPON FLOATS AT A MARGIN OF 25 POINT BELOW THE THREEMONTH LONDON INTERBANK OFFERED RATE FEES 015 AND 200 BILLION LIRA OF NOTES IS DUE MARCH 5 1998 AT PAR WITH A FIXED FIRST COUPON OF 1096875 THE COUPON FLOATS AT 0125 POINT BELOW THE SIXMONTH LIBOR CALLABLE AT PAR AT EACH COUPON DATE AFTER MARCH 1996 FEES 020 FRANCE TELECOM FRANCE 25 BILLION FRENCH FRANCS OF 7875 EUROBONDS DUE MARCH 3 2003 AT 9870 VIA PARIBAS CAPITAL MARKETS LTD YIELD 908 ANNUALLY A SPREAD OF 30 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT OAT ISSUE FEES 0325 LKB BADEN WURTTEMBERG FINANCE NV GERMAN PARENT 15 BILLION FRANCS OF 775 EUROBONDS DUE MARCH 2 2001 AT 99077 VIA BNP CAPITAL MARKETS LTD YIELD 791 A SPREAD OF 28 BASIS POINTS ABOVE THE COMPARABLE OAT GOVERNMENT ISSUE GUARANTEED BY LANDESKREDITBANK BADEN WURTTEMBERG AG FEES 030 SWEDISH NATIONAL HOUSING FINANCE CORP SWEDEN 125 MILLION SWISS FRANCS OF 525 PUBLIC BONDS DUE MARCH 10 1998 PRICED AT 102 VIA CREDIT SUISSE FEES 1625 9302090098 930209 WHO'S NEWS PHILLIPS PETROLEUM CO PHILLIPS PETROLEUM CO BARTLESVILLE OKLA LAWRENCE S EAGLEBURGER WAS NAMED TO THE BOARD AND TC MORRIS WAS NAMED VICE PRESIDENT AND TREASURER OF THIS OIL COMPANY MR EAGLEBURGER FILLS A BOARD VACANCY LEFT BY DOLORES WHARTON WHO RESIGNED EFFECTIVE JAN 31 MR MORRIS 52 YEARS OLD IS ASSUMING THE TREASURY DUTIES EFFECTIVE MARCH 1 FROM JJ MULVA WHO REMAINS CHIEF FINANCIAL OFFICER MR MORRIS WAS MANAGER OF PHILLIPS'S FEDERAL RELATIONS MR EAGLEBURGER 62 WAS FORMER SECRETARY OF STATE FOR THE BUSH ADMINISTRATION AND SERVED THE DEPARTMENT OF STATE IN VARIOUS POSITIONS FOR MORE THAN 27 YEARS HE IS CURRENTLY A MEMBER OF LAW FIRM BAKER WORTHINGTON CROSSLEY STANSBERRY & WOOLF OF WASHINGTON 9302090097 930209 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON THOMAS R MCDADE WAS NAMED TO THE BOARD OF THIS NATURAL GAS COMPANY BRINGING THE BOARD'S SIZE TO 18 MR MCDADE 60 YEARS OLD IS CURRENTLY SENIOR PARTNER OF THE LAW FIRM MCDADE & FOGLER OF HOUSTON 9302090096 930209 TINY INSURER SUES MERRILL OVER MEANING IN INSILCO PROSPECTUS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A TINY INSURER SUED GIANT MERRILL LYNCH & CO IN FEDERAL COURT HERE OVER A 270 MILLION OFFERING OF INSILCO CORP HIGHYIELD JUNK BONDS THAT MERRILL UNDERWROTE IN 1989 THE SQUABBLE HOW TO INTERPRET 11 WORDS IN THE TELLALL DOCUMENT KNOWN AS THE PROSPECTUS THE INSURER JACKSON NATIONAL LIFE INSURANCE CO BOUGHT ABOUT 8 MILLION OF THE INSILCO BONDS THAT IT SAYS NOW ARE NEARLY WORTHLESS IN THE 1989 OFFERING MERRILL WASN'T ABLE TO SELL ALL THE INSILCO BONDS WHICH HAVE PLUNGED IN PRICE AS INSILCO HAS FLOUNDERED JACKSON BASED IN LANSING MICH IS A UNIT OF PRUDENTIAL CORP PLC A BIG BRITISH INSURER JACKSON ALLEGES IN ITS SUIT THAT MERRILL MISLED INVESTORS BECAUSE IT PROMISED THAT THE BONDS WOULD BE SOLD ONLY IF MERRILL WAS ABLE TO SELL ALL THE SECURITIES IN THE OFFERING THE PROOF JACKSON SAYS IS IN THE PROSPECTUS NONE OF THE SECURITIES WILL BE SOLD UNLESS ALL ARE SOLD THE PROSPECTUS SAYS ACCORDING TO THE SUIT NONSENSE SAYS MERRILL THOSE WORDS SIMPLY MEAN THAT INSILCO PROMISED TO SELL ALL THE BONDS TO MERRILL WHO IN TURN WOULD RESELL THEM TO THE PUBLIC TO SUGGEST OTHERWISE SNIFFS A MERRILL SPOKESMAN CONTRADICTS ALL EXISTING PRECEDENT AND THE PLAIN LANGUAGE OF THE PROSPECTUS IN A TYPICAL FIRM COMMITMENT UNDERWRITING INVESTMENT BANKS SUCH AS MERRILL BUY SECURITIES FROM AN ISSUER AND RESELL THEM TO INVESTORS AT A MARKUP IF THE ISSUE ISN'T FULLY SOLD TO INVESTORS THE INVESTMENT BANKS ARE STUCK WITH THE REMAINING SECURITIES THE PROCEEDS OF THE INSILCO OFFERING WERE TO BE USED TO HELP REPAY A 405 MILLION TEMPORARY BRIDGE LOAN ADVANCED BY MERRILL TO INSILCO A MIDLAND TEXAS MAKER OF ELECTRICAL CONNECTORS PAINT AND ROLODEXES THE LOAN PRECEDED AN 800 MILLION LEVERAGED BUYOUT OF INSILCO FOR WHICH MERRILL SERVED AS INVESTMENT BANKER BUT INSILCO WAS UNABLE TO HANDLE ITS BIG NEW DEBT LOAD AND IT FILED FOR PROTECTION FROM CREDITORS UNDER THE FEDERAL BANKRUPTCY CODE IN JANUARY 1991 AMONG THE COMPANY'S BIGGEST CREDITORS WERE BUYERS OF MORE THAN 400 MILLION OF JUNK BONDS UNDERWRITTEN BY MERRILL 9302090095 930209 LEISUE & ARTS BOOKSHELF AN AMATEUR IN THE PENTAGON BY PETER BRAESTRUP WE NEED A REPUBLICAN OR TWO SAID JOHN F KENNEDY AS HE PUT TOGETHER HIS NEW FRONTIER CABINET IN LATE 1960 IT HAD BEEN A NARROW WIN OVER RICHARD NIXON THE DEMOCRATS' SCOUTS FOUND AN HONESTTOGOD REPUBLICAN CHIEF EXECUTIVE OFFICER WITH A HARVARD MBA A REPUTATION FOR MANAGERIAL BRILLIANCE AND SOME ENGAGING ECCENTRICITIES HE SUPPORTED THE AMERICAN CIVIL LIBERTIES UNION GOT ALONG WITH LABOR LEADERS AND EVEN READ BOOKS LIKE PHILOSOPHER PIERRE TEILHARD DE CHARDIN'S THE PHENOMENON OF MAN THE CEO WAS ROBERT STRANGE MCNAMARA 44 YEARS OLD NEWLY PROMOTED PRESIDENT OF FORD MOTOR CO CHARMED BY JFK AND KEEN ON LARGER HORIZONS HE LEFT BEHIND A 410000 SALARY TO TAKE OVER THE PENTAGON AT 25000 A YEAR AND NEVER LOOKED BACK OF ALL THE BEST AND THE BRIGHTEST BROUGHT TO WASHINGTON BY KENNEDY AS DEBORAH SHAPLEY POINTS OUT IN PROMISE AND POWER THE LIFE AND TIMES OF ROBERT MCNAMARA LITTLE BROWN 734 PAGES 2495 MR MCNAMARA REMAINS THE MOST CONTROVERSIAL THE SUPERMANAGER/POLICY WONK WHO CREATED AMERICA'S STRONGEST PEACETIME MILITARY FORCE AND THEN AT THE BEHEST OF LYNDON B JOHNSON NEARLY WRECKED IT IN VIETNAM SEEKING SUCCESS WITHOUT A STRATEGY EARLY ON MR MCNAMARA TOLD AN INTERVIEWER RUNNING A LARGE ORGANIZATION IS THE SAME WHETHER IT IS THE FORD MOTOR COMPANY THE CATHOLIC CHURCH OR THE DEPARTMENT OF DEFENSE ONCE YOU GET TO A CERTAIN SCALE THEY'RE ALL THE SAME HE IMPRESSED KENNEDY AND THE PRESS WITH HIS RAPIDFIRE DELIVERY OF FACTS AND FIGURES HIS QUICKNESS TO SUPPLY COLD WAR POLICY OPTIONS WHILE DEAN RUSK'S STATE DEPARTMENT DAWDLED AND HIS WILLINGNESS TO STAND UP TO CONGRESS WITHIN THE PENTAGON HOWEVER THE WORKAHOLIC SECRETARY OF DEFENSE SOON CREATED LASTING RESENTMENT MR MCNAMARA USED THE SAME TOPDOWN APPROACH HE HAD USED AT FORD HE RELIED ON A HANDPICKED CADRE OF CIVILIANS THE WHIZ KIDS WHO WROTE REAMS OF POLICY MEMORANDUMS FOR HIM ON ALL MATTERS HE DISTRUSTED THE MILITARY CHIEFS CONGRESS AND THE PUBLIC HE CURBED INTERSERVICE RIVALRY AND MODERNIZED PROCUREMENT BUT RATIONAL ANALYSIS LED MR MCNAMARA TO INSIST ON DEVELOPMENT OF A NEW AIRPLANE THE TFX THAT COULD BE FLOWN BOTH FROM AIR FORCE BASES AND NAVY CARRIERS IT WAS A COSTLY FIASCO AFTER KENNEDY'S ASSASSINATION IN 1963 MR MCNAMARA STAYED ON TO SERVE JOHNSON EVEN AS THEY INCREASED THE US COMMITMENT TO SOUTH VIETNAM TO MORE THAN 500000 TROOPS TO STAVE OFF COMMUNIST VICTORY BOTH MEN BELIEVED THEY COULD CONTROL THE WAR AS THEY HAD CONTROLLED POLICY IN WASHINGTON LBJ SOUGHT TO PLAY FOR TIME AVOIDING A DECISIVE STRATEGY EVER OBEDIENT MR MCNAMARA BARGAINED WITH THE UNHAPPY SERVICE CHIEFS OVER TROOPS AND BOMBING TARGETS FROM SAIGON HE DEMANDED MORE NUMBERS INCLUDING BODY COUNTS OF ENEMY DEAD AND THE DATA HE SOUGHT AND GOT WERE SOON EITHER IRRELEVANT OR FALSE OR BOTH TOUTING THE NUMBERS MR MCNAMARA WAS THE WAR'S TOP SALESMAN HE PREDICTED SUCCESS EVEN AS US LOSSES MOUNTED AND CREATED A CREDIBILITY GAP IN THE PRESS AND ON CAPITOL HILL HE PRIVATELY BEGAN TO DESPAIR FINALLY IN FEBRUARY 1968 HE LEFT THE PENTAGON TO RUN THE WORLD BANK AND VIRTUALLY REFUSED THEREAFTER TO DISCUSS VIETNAM SAID HIS FREQUENT GEORGETOWN HOST COLUMNIST JOSEPH ALSOP HE DID NOT UNDERSTAND WAR AT THE WORLD BANK FROM 1968 TO 1981 MR MCNAMARA WAS A DOUBTFREE MAN HE PASSIONATELY DECLARED WAR ON POVERTY IN THE THIRD WORLD VASTLY INCREASING WORLD BANK LENDING AND BOOSTING GRAIN PRODUCTION THROUGH NEW HYBRID SEEDS AND FERTILIZERS THEREBY LARGELY ENDING FAMINES IN SOUTH ASIA BUT AS BIOGRAPHER SHAPLEY NOTES HE IGNORED THE DISASTROUS CONSEQUENCES OF SOME BANK PROJECTS IN AFRICA POORER NATIONS' MOUNTING DEBT LOAD AND THE INCOMPETENCE OF LOCAL REGIMES ON WHICH HE PRESSED MONEY FOR DEVELOPMENT THE BILLS CAME DUE AFTER HIS DEPARTURE AFTER HE LEFT THE BANK HE STAYED ON IN WASHINGTON BRIEFLY EMERGING AS A BORNAGAIN DOVE DURING THE EARLY REAGAN YEARS TO URGE A NO FIRST USE POLICY ON US NUCLEAR WEAPONS HE TESTIFIED IN A LIBEL CASE AGAINST CBS SAYING HE HAD PRIVATELY FELT THE VIETNAM WAR WAS UNWINNABLE AS EARLY AS 1966 WHEN THE BUILDUP OF US TROOPS WAS UNDER WAY AND HE WAS CHEERING THEM ON SURPRISINGLY MS SHAPLEY AFTER A HALFDECADE OF RESEARCH AND 20 HARDTOGET INTERVIEWS WITH MR MCNAMARA MUDDLES MUCH OF THE HISTORICAL CONTEXT AND HAS A SHAKY GRASP ON MILITARY MATTERS BUT WHAT SHE DOES OFFER IS A SHARPLY DETAILED PERSONAL PORTRAIT OF A COMPLEX INDIVIDUAL WHO ROSE SO HIGH FROM MODEST CIRCUMSTANCES MR MCNAMARA EMERGES AS A MAN LOYAL TO HIS CLOSE AIDES DEVOTED TO HIS WIFE REMOTE FROM HIS CHILDREN AND BRUSQUE TO MOST OTHERS IN HER FINAL INTERVIEWS MS SHAPLEY DESCRIBES HIM STILL BOBBING AND WEAVING ON THE SURFACE OF THE TRUTH ROBERT MCNAMARA SHE WRITES WAS A MANAGER AND MANIPULATOR NOT A LEADER AND IN WASHINGTON AND DETROIT THERE IS USUALLY TOO LITTLE ATTENTION PAID TO THE DIFFERENCE BUT HIS CAREER IN WASHINGTON REMINDS US THAT HIGH HOPES GOOD INTENTIONS AND STATISTICAL SCENARIOS ARE INSUFFICIENT GUIDES TO PUBLIC POLICY WAR AND READINESS FOR WAR IN PARTICULAR ARE MATTERS TOO GRAVE TO BE LEFT TO GIFTED AMATEURS MR BRAESTRUP COVERED BOTH VIETNAM AND THE PENTAGON DURING THE 1960S FOR THE NEW YORK TIMES AND THE WASHINGTON POST 9302090094 930209 WHO'S NEWS HELENE CURTIS INDUSTRIES INC HELENE CURTIS INDUSTRIES INC CHICAGO MICHAEL GOLDMAN 55 YEARS OLD AND A SENIOR VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PERSONAL CARE PRODUCTS CONCERN HE SUCCEEDS CHARLES G COOPER 64 WHO WAS NAMED SENIOR VICE PRESIDENT RESPONSIBLE FOR CORPORATE BUSINESS DEVELOPMENT GILBERT P SMITH 55 SENIOR VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S CONSUMER PRODUCTS DIVISION WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT AND PRESIDENT OF HELENE CURTIS USA COLIN J MORGAN 57 VICE PRESIDENT AND PRESIDENT OF HELENE CURTIS INTERNATIONAL WAS PROMOTED TO SENIOR VICE PRESIDENT OF THE COMPANY 9302090093 930209 US HOPES TO GET RUSSIAN SUPPORT FOR BOSNIAN PLAN BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS HOPING TO ENLIST RUSSIA'S SUPPORT FOR A NEW DIPLOMATIC INITIATIVE TO SETTLE THE CONFLICT IN BOSNIAHERZEGOVINA BY BRINGING RUSSIA INTO THE NEGOTIATIONS MUCH AS THE BUSH ADMINISTRATION BROUGHT MOSCOW INTO MIDDLE EAST PEACE EFFORTS THE US IS HOPING TO TRANSFORM MOSCOW FROM A POTENTIAL OBSTACLE INTO A KEY ALLY RUSSIAN PRESIDENT BORIS YELTSIN HAS WARNED THAT MOSCOW WOULD BLOCK ANY ATTEMPT BY THE UNITED NATIONS SECURITY COUNCIL TO IMPOSE NEW SANCTIONS ON SERBIA A LONGTIME ALLY OF RUSSIA SERBIA IS SEEN BY THE US AS THE PRIMARY AGGRESSOR IN THE BOSNIAN CIVIL WAR AND A KEY OBSTACLE TO ANY NEGOTIATED SETTLEMENT THE IDEA IS TO GET THE RUSSIANS INVOLVED IN A HIGHER PROFILE WAY SAID A EUROPEAN DIPLOMAT THEY CAN DO A LOT POSITIVELY THEY CAN ALSO BE DIFFICULT BECAUSE OF THEIR VOTE AT THE UN US OFFICIALS INSIST THAT THEIR POLICY REVIEW ON BOSNIA IS NOT YET COMPLETE AND WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS WOULD SAY ONLY THAT HE EXPECTED TO HAVE AN ANNOUNCEMENT SOON BUT THE BASIC OUTLINES OF WHAT THE ADMINISTRATION IS CONTEMPLATING HAVE BEGUN TO EMERGE UNABLE TO RALLY SUPPORT EITHER FROM THE PENTAGON OR EUROPEAN ALLIES FOR STRONGER MILITARY ACTION IN BOSNIA THE ADMINISTRATION HAS DECIDED TO GET MORE ACTIVELY ENGAGED IN DIPLOMATIC NEGOTIATIONS TO END THE CIVIL WAR IT APPARENTLY HAS DECIDED TO WORK WITH UN AND EUROPEAN COMMUNITY NEGOTIATORS CYRUS VANCE AND LORD DAVID OWEN TO COME UP WITH A NEW PEACE PROPOSAL THE US BELIEVES THAT THE CURRENT PLAN PROPOSED BY MR VANCE AND LORD OWEN WHICH WOULD DIVIDE BOSNIAHERZEGOVINA INTO 10 ETHNICALLYBASED SEMIAUTONOMOUS PROVINCES WOULD REWARD THE SERBIAN PRACTICE OF ETHNIC CLEANSING AND IS UNLIKELY TO LEAD TO PEACE BOSNIA'S MOSLEMLED GOVERNMENT AND BOSNIAN SERBS HAVE REJECTED THE PLAN THE SERBCONTROLLED GOVERNMENT IN BELGRADE ENDORSED THE VANCEOWEN PLAN AS HAVE SEVERAL EUROPEAN STATES IT STILL ISN'T CLEAR WHETHER THE CLINTON ADMINISTRATION WILL OFFER A SPECIFIC ALTERNATIVE TO THE VANCEOWEN PLAN UNLIKE IN THE MIDEAST PEACE TALKS WHERE THE US AND RUSSIA ARE THE OFFICIAL HOSTS THE UN AND EC NEGOTIATORS ARE LIKELY TO CONTINUE TO DIRECT THE BOSNIA NEGOTIATIONS BUT THE CLINTON ADMINISTRATION IS EXPECTED TO APPOINT A SPECIAL ENVOY TO WORK BEHIND THE SCENES THE US ALSO IS CONSIDERING OFFERING INCREASED HUMANITARIAN AID TO HELP THE BOSNIAN PEOPLE SURVIVE WHAT COULD BE A LONG NEGOTIATING PROCESS IN COMING DAYS THE US AND THE EUROPEANS ALSO MAY REVIVE EFFORTS TO TIGHTEN ALREADY APPROVED ECONOMIC SANCTIONS ON SERBIA INCLUDING LOOKING FOR WAYS TO BLOCK OIL DELIVERIES CURRENTLY MOVING ALONG THE DANUBE RIVER ANY DISCUSSION OF FURTHER SANCTIONS ON SERBIA INCLUDING THE ENFORCEMENT OF A NOFLY ZONE FOR SERBIAN PLANES IN BOSNIA WOULD BE DEFERRED FOR NOW TO SEE HOW SERBIA AND THE BOSNIAN SERBS RESPOND TO A NEW DIPLOMATIC INITIATIVE 9302090092 930209 LEISURE & ARTS KEEPING AUTHORS HAPPY ON THOSE 20CITY BOOK TOURS BY AMY GAMERMAN WHEN PENN JILLETTE OF PENN AND TELLER FAME WENT ON THE ROAD TO PROMOTE THE DUO'S BOOK HOW TO PLAY WITH YOUR FOOD HE WAS THRILLED TO HEAR THAT THEY'D BE MET BY AN ESCORT IN EACH CITY IT MADE ME THINK WE WERE GOING TO GET SOMEBODY NAMED BAMBI WHO WAS A LITTLE BIT TOUGH USED TO HAVE A DRUG PROBLEM AND A GUY NAMED BUTCH HE SAYS INSTEAD HE GOT SALLY CARPENTER MS CARPENTER A BOSTONBASED AUTHOR ESCORT HAS NEITHER A DRUG PROBLEM NOR A GUY NAMED BUTCH BUT SHE DID KNOW WHAT TO DO WITH THE PIZZA PENN AND TELLER PLANNED TO USE ON TV FOR ONE OF THEIR EDIBLE GAGS THE PEPPERONI SLICES ARRANGED LIKE A THREE OF CLUBS WEREN'T SHOWING UP ONSCREEN WHICH IS HOW MS CARPENTER FOUND HERSELF COLORING IN PENN'S PEPPERONI SLICES WITH HER EYEBROW PENCIL IT WAS ALL IN A DAY'S WORK PUBLISHERS COUNT ON FREELANCE AUTHOR ESCORTS LIKE MS CARPENTER TO KEEP BOOK TOURS RUNNING SMOOTHLY NOT ONLY ARE ESCORTS EXPECTED TO KNOW HOW TO PARK NEAR THE BACK DOOR OF A RADIO STATION SO YOU DON'T HAVE TO CIRCLE AROUND THE BLOCK EIGHT TIMES SAYS HELENE ATWAN PUBLICITY CHIEF FOR FARRAR STRAUS & GIROUX MOST KNOW HOW TO KEEP AUTHORS HAPPY WITHOUT STRESSING THEM OUT AND HAPPINESS IS A RELATIVE THING WHEN YOU'RE IN THE MIDDLE OF A 20CITY BOOK TOUR I'LL BE ON A TV SHOW BEING AS WITTY AND URBANE AS POSSIBLE THINKING AM I GOING TO GET A CHANCE TO GO TO THE BATHROOM' SAYS HUMORIST DAVE BARRY IT'S AN ESCORT'S JOB TO MAKE SURE HE DOES THE SAME SKILLS ARE INVOLVED IN GOING OUT WITH A FIVEYEAROLD SAYS KATHI KAMEN GOLDMARK OF SAN FRANCISCO YOU HAVE TO HAVE KLEENEX YOU HAVE TO HAVE FOOD YOU HAVE TO HAVE SOMETHING TO PLAY WITH YOU HAVE TO MAKE SURE THEY DON'T WANDER OFF SOMETIMES THEY DO SHE ONCE LOST NORMAN MAILER IN CHINATOWN BUT AFTER NINE YEARS MS GOLDMARK NOW HAS ESCORTING DOWN TO A SCIENCE SHE KNOWS THAT AT THE AIRPORT A TIRED WRITER WILL WALK RIGHT BY A SIGN WITH HIS NAME ON IT BUT IF YOU HOLD HIS BOOK UP FROM 500 YARDS AWAY HE CAN SEE IT AT SIGNINGS SHE GIVES AUTHORS HER GUITARADORNED RESCUE ME PEN WHEN THEY PICK IT UP IT'S HER CUE TO HAUL THEM AWAY AND HER CAR IS STOCKED WITH FRUIT WATER EXTRA PANTYHOSE SAFETY PINS AN EXTRA PAIR OF MEN'S SOCKS AND A TIE OR TWO IN FACT THERE'S LITTLE A GOOD ESCORT WON'T PROVIDE WHEN GINGER ROGERS COMPLAINED THAT HER BOSTON HOTEL BED WAS TOO HARD MS CARPENTER GOT HER A LAZBOY RECLINER AND WHEN CLIVE BARKER LOST ALL HIS UNDERWEAR ON THE FLIGHT TO LOS ANGELES KAREN HEBERT TOOK HIM SHOPPING FOR VERY FRENCH SEXY BIKINI REPLACEMENTS SHE'S ALSO CLOCKED A BEVERLY HILLS MILE FOR JOGGER GEORGE WILL AND DUSTED TABLETOPS FOR AN AFRICAN PRINCESS/WRITER HEY IT WASN'T ILLEGAL IT WASN'T IMMORAL SHE SAYS SPEAKING OF WHICH NO ESCORT ADMITS TO ARRANGING A CALL GIRL FOR AN AUTHOR BUT IF LOVE OR LUST STRIKES IN THE MIDDLE OF A HECTIC BOOK TOUR THEY'RE PREPARED I HAD A WOMAN HUMOR WRITER IN TOWN FROM NEW YORK WHO MET SOMEONE ON A MORNING RADIO SHOW SHE THOUGHT WAS REALLY CUTE THEY HAD ONE HOUR TO GET TOGETHER MS GOLDMARK REVEALS WHILE SHE WAS IN HER NEXT INTERVIEW I RAN DOWN THE STREET AND GOT HER A PACK OF CONDOMS GIVEN SUCH AUTHORESCORT INTIMACY IT SHOULDN'T COME AS A SHOCK THAT MS HEBERT ROUTINELY STRAIGHTENS CROOKED TIES BRUSHES DANDRUFF FROM PINSTRIPED SHOULDERS AND ONCE TOLD A PROMINENT FINANCIAL WRITER TO CHECK HIS PANTS BEFORE HIS CNN INTERVIEW I COULDN'T LET HIM GO ONSTAGE WITH HIS ZIPPER UNDONE SHE SAYS INDEED SOME WRITERS MAY ACTUALLY FINISH THEIR BOOK TOURS LOOKING BETTER THAN BEFORE THEY STARTED THEM AN ESCORT WORKING FOR LENORE MARKOWITZ'S DALLAS ESCORT SERVICE IS TRAINED IN ELECTROLYSIS A SERVICE AUTHORS CAN AVAIL THEMSELVES OF BETWEEN INTERVIEWS UNSIGHTLY HAIR IS THE LEAST OF THE MEDICAL WORRIES THAT CROP UP ON BOOK TOURS ESCORTS HAVE RUSHED AUTHORS TO THE DOCTOR FOR THEIR BAD BACKS GALLSTONES AND ALLERGIES WHEN ANTONIA FRASER ARRIVED IN WASHINGTON ON A RECENT BOOK TOUR WITH LARYNGITIS HER ESCORT WAS PREPARED WHEN LADY ANTONIA MADE A HAND GESTURE HE CAME ON STAGE AND SPRAYED HER THROAT WITH CHLORASEPTIC SAYS PAUL BOGAARDS KNOPF'S PROMOTIONS CHIEF THAT'S THE KIND OF THING IT TAKES IT ALSO TAKES SOME HANDHOLDING FOR AUTHORS WITH FEARS OF ELEVATORS BRIDGES AND HILLS ONE NONFICTION WRITER SPENT MOST OF HIS DAY IN SAN FRANCISCO HUDDLED ON THE FLOOR OF MS GOLDMARK'S CAR JANE STERN WHO WRITES ABOUT POP CULTURE WITH HUSBAND MICHAEL IS AFRAID OF TUNNELS AS ESCORT LYNN CANNICI DROVE HER THROUGH ONE EN ROUTE TO BOSTON'S AIRPORT I HANDED HER MY BOOK AND ASKED HER TO SIGN IT TO DIVERT HER ATTENTION IT WORKED SHE SAYS BUT THERE ARE SOME THINGS YOU JUST CAN'T PLAN FOR ESCORT DAVID WENGER TELLS OF THE TIME JACKIE COLLINS GOT LOCKED IN HER WASHINGTON HOTEL ROOM THAT WASN'T SO TERRIBLE EXCEPT THAT WHILE SHE WAS STRANDED THE HOTEL HAD A FIRE ALARM AND THEY EVACUATED RECALLS MR WENGER WHO BRAVELY STAYED GLUED TO THE OTHER SIDE OF THE DOOR IT WAS SORT OF AN ANXIOUS TIME FOR HER FINALLY SHE GOT OUT BY USING A WOODEN HANGER IN THE CLOSET TO BANG ON THE DOOR ALTHOUGH MR WENGER WINS HIGH MARKS FOR COURAGE NOT EVERYONE GIVES ESCORTS GREAT REVIEWS PUBLICISTS GRIPE ABOUT THE ONES WHO DELIVERED AUTHORS TO THE WRONG AIRPORT TERMINAL TALKED NONSTOP TO THEM WHEN THEY WANTED TO REST CRABBED AT THEM FOR SMOKING AND FOISTED THEIR OWN UNPUBLISHED MANUSCRIPTS ON THEM EVEN THE BEST ESCORTS SLIP UP NOW AND THEN ON A WHIRLWIND TOUR THROUGH DALLAS MS MARKOWITZ PICKED UP SOME BARBECUE AND POTATO SALAD FOR A FAMISHED MR BARRY TO EAT IN THE CAR BUT FORGOT THE FORK I LOOKED AROUND IN HER GLOVE COMPARTMENT AND FOUND A PAIR OF PLIERS HE SAYS SHE ASSURED ME THEY WERE CLEAN SO I USED THEM THE ESCORTS' HORROR STORIES ARE WORSE I'VE HAD A QUITE PROMINENT PERSON HAUL OFF AND HIT ME SAYS BILL YOUNG OF CHICAGO AND MISUNDERSTANDINGS DO ARISE I LEFT A MESSAGE ON A FOOTBALL PLAYER'S VOICEMAIL THAT I WAS KAREN HEBERT HIS LA ESCORT FOR THE DAY SHE RECOUNTS HE THOUGHT I WAS A CALL GIRL HE CAUGHT ON FAST BUT SOME AUTHORS LIKE OLEG CASSINI TRY TO GET PERSONAL HE TOLD ME I WAS A BEAUTIFUL GILDED BIRD IN A CAGE AND I NEEDED THREE DAYS OF THE CASSINI TREATMENT MS HEBERT SAYS THEN WHEN I SAID NO HE TOLD ME I WAS TOO OLD FOR HIM OH WELL IT COULD BE WORSE JERRY FALWELL COULD TRY TO CONVERT YOU HE GAVE MS HEBERT HIS HOME NUMBER AND TOLD HER TO CALL ANYTIME SHE WANTED TO TALK SALVATION THE WORST AUTHORS ARE HONORED WITH THE GOLDEN DARTBOARD AWARD AT THE AMERICAN BOOKSELLERS ASSOCIATION CONVENTION WHERE ESCORTS GATHER EACH YEAR PAST WINNERS INCLUDE JEFFREY ARCHER GLAD TO HEAR YOU CAN DO SOMETHING RIGHT HE TOLD ISABEL KEATING OF MINNEAPOLIS AFTER SHE FOLDED HIS SON'S SHIRTS FOR HIM MARTHA STEWART AND SHIRLEY MACLAINE FRONTRUNNERS FOR '93 INCLUDE FRUGAL GOURMET JEFF SMITH AND GAIL SHEEHY BUT THEY'RE THE EXCEPTIONS ESCORTS SAY THEY'VE MADE FAST FRIENDS WITH MANY OF THEIR WRITERS MS GOLDMARK EVEN RECRUITED MR BARRY AMY TAN STEPHEN KING ROBERT FULGHUM AND OTHER BESTSELLERS FOR A BAND THE ROCK BOTTOM REMAINDERS WHICH PREMIERED AT LAST YEAR'S ABA MS CANNICI HAS FOND MEMORIES OF BEING TAUGHT TO THROW LIKE A BOY USING A PAIR OF BALLED SOCKS BY GARRISON KEILLOR AND MS KEATING HAS BEEN INVITED SKIING WITH MICHAEL DORRIS AND LOUISE ERDRICH SHE SAYS YOU FORGET ALL THE AGITATIONS OF ESCORTING WHEN YOU'RE PLAYING GAL PAL FOR THE DAY WITH ALI MACGRAW PEOPLE WOULD KIND OF LOOK AT US AND I THOUGHT GOSH THIS IS GREAT TO BE WALKING DOWN THE STREET WITH ALI MACGRAW' SHE GUSHES AND AS FOR THOSE NASTY UNGRATEFUL WRITERS WELL ONE ESCORT HAD HER REVENGE AFTER AN ESPECIALLY GRUELING DAY SHE WENT HOME POURED HERSELF A GLASS OF WINE AND CARRIED THE WRETCH'S BOOK OUT TO THE DRIVEWAY THEN SHE BURNED IT 9302090091 930209 WHO'S NEWS JEFFERSONPILOT SLATES SPILMAN TO SUCCEED SOLES AS CHAIRMAN GREENSBORO NC JEFFERSONPILOT CORP ELECTED A NEW CHAIRMAN TO TAKE OVER WHEN ITS 25YEAR VETERAN CHIEF EXECUTIVE W ROGER SOLES RETIRES IN MARCH ROBERT H SPILMAN THE CHIEF EXECUTIVE OF BASSETT FURNITURE INDUSTRIES INC IN BASSETT VA WAS SELECTED AS CHAIRMAN OF THIS INSURER TO SUCCEED MR SOLES 72 YEARS OLD MR SPILMAN 65 HAS BEEN A BOARD MEMBER FOR EIGHT YEARS THE COMPANY ALSO NAMED TWO OTHER BOARD MEMBERS HUGH L MCCOLL 57 PRESIDENT AND CHIEF EXECUTIVE OF NATIONSBANK CORP AND DAVID STONECIPHER 51 IN AUGUST MR STONECIPHER WAS NAMED TO SUCCEED MR SOLES AS JEFFERSONPILOT PRESIDENT AND CHIEF EXECUTIVE THE NEW BOARD MEMBERS SUCCEED TWO MEMBERS WHO RESIGNED ROBERT H KOONTS 65 AND CD SPANGLER JR 61 MR KOONTS PLANS TO RETIRE AS GENERAL COUNSEL OF THE COMPANY THIS YEAR MR SPANGLER WHO IS PRESIDENT OF THE UNIVERSITY OF NORTH CAROLINA HAS BEEN ACCUMULATING STOCK IN JEFFERSONPILOT SINCE NOVEMBER HE HAS BOOSTED HIS HOLDINGS BY MORE THAN ONE MILLION SHARES TO A 6 STAKE INVESTORS HAD SAID MR SPANGLER WAS A POTENTIAL SUCCESSOR TO MR SOLES PRIOR TO THE APPOINTMENT OF MR STONECIPHER THE COMPANY GAVE NO REASON FOR MR SPANGLER'S RESIGNATION AND MR SPANGLER COULDN'T BE REACHED FOR COMMENT THE COMPANY NOMINATED BILLY PAYNE 45 CHIEF EXECUTIVE OF THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES TO FILL THE BOARD SPOT MR SOLES WILL VACATE LOUISE PRICE PARSONS LEADER OF A DISSIDENT GROUP OF STOCKHOLDERS OBJECTED TO THE BOARD APPOINTMENTS SAYING THEY MAKE THE BOARD MORE INBRED THAN EVER MS PARSONS PROPOSED THREE ALTERNATIVE NOMINEES FOR ELECTION TO THE BOARD LAST YEAR HER SLATE OF NOMINEES LOST A PROXY CHALLENGE TO THE BOARD SEPARATELY JEFFERSONPILOT BOOSTED ITS QUARTERLY DIVIDEND FIVE CENTS TO 39 CENTS A SHARE 9302090090 930209 NETWORK SYSTEMS HAD LOSS IN FOURTH PERIOD BECAUSE OF A CHARGE MINNEAPOLIS NETWORK SYSTEMS CORP SAID IT HAD A LOSS OF NEARLY 50 MILLION OR 165 A SHARE IN THE FOURTH QUARTER AFTER A 603 MILLION RESTRUCTURING CHARGE RELATED TO ITS ACQUISITION OF VITALINK COMMUNICATIONS CORP NETWORK SAID CONTINUED POOR PERFORMANCE AT VITALINK A MAKER OF HIGHPERFORMANCE DATA COMMUNICATIONS SYSTEMS ACQUIRED IN JUNE 1991 PROMPTED IT TO WRITE DOWN ALL OF THE REMAINING GOODWILL AND OTHER INTANGIBLE ASSETS ON THE BOOKS DEC 31 THE COMPANY HAD SAID IT WOULD TAKE A 40 MILLION FOURTHQUARTER CHARGE FOR A PARTIAL WRITEDOWN AND A 5 WORK FORCE REDUCTION NETWORK ALSO SAID ITS BOARD HAD AUTHORIZED A BUYBACK OF 5 OF THE COMMON STOCK OUTSTANDING OR ABOUT 15 MILLION SHARES THE ANNOUNCEMENTS CAME AFTER THE CLOSE OF TRADING IN THE OVERTHECOUNTER MARKET REVENUE WAS 589 MILLION DOWN 98 FROM 653 MILLION EARNINGS BEFORE THE RESTRUCTURING CHARGE TOTALED 104 MILLION OR 20 CENTS A SHARE COMPARED WITH EARNINGS OF 56 MILLION OR 18 CENTS A SHARE A YEAR EARLIER IN THE YEAR NETWORK SYSTEMS HAD A LOSS OF 397 MILLION OR 131 A SHARE AFTER THE RESTRUCTURING CHARGE ON RECORD REVENUE OF 2191 MILLION UP 10 FROM THE YEAR EARLIER IN 1991 THE COMPANY POSTED EARNINGS OF 152 MILLION OR 50 CENTS A SHARE ON REVENUE OF 1987 MILLION IN OVERTHECOUNTER TRADING YESTERDAY NETWORK SYSTEMS SHARES GAINED 125 CENTS TO CLOSE AT 11375 9302090089 930209 MONDAY'S MARKETS STOCKS DROP BY 460 POINTS BONDS DECLINE STAFF REPORTER OF THE WALL STREET JOURNAL BY STEVEN E LEVINGSTON THE STOCK MARKET RALLY COOLED LEAVING PRICES LOWER BOND PRICES FELL AND THE DOLLAR WEAKENED THE DOW JONES INDUSTRIAL AVERAGE FELL 460 POINTS TO 343754 AFTER SETTING A RECORD FRIDAY STANDARD & POOR'S 500STOCK INDEX LOST 108 TO 44785 AND THE NASDAQ COMPOSITE INDEX SANK 254 TO 69844 TRADING VOLUME WHILE EASING FROM LAST WEEK'S FRENETIC PACE REMAINED HEAVY INVESTORS TURNED CAUTIOUS AFTER FEVERISH BUYING DROVE THE DOW JONES INDUSTRIALS UP NEARLY 4 LAST WEEK IT'S COMMON SENSE TO EXPECT A LITTLE BIT OF A BREATHER SAID HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP BOTH THE STOCK AND BOND MARKETS WILL BE TAKING THEIR CUES FROM THE TREASURY'S QUARTERLY REFUNDING BEGINNING TODAY MR JOHNSON SAID WITH LONGTERM INTEREST RATES ALREADY LOW MR JOHNSON SAID INVESTORS ARE WAITING TO SEE IF THERE IS STILL A STRONG APPETITE FOR MORE TREASURY BONDS INVESTORS ALSO ARE LIKELY TO TREAD CAUTIOUSLY UNTIL PRESIDENT CLINTON UNVEILS HIS ECONOMIC STIMULUS PACKAGE FEB 17 MR JOHNSON SAID THE RECENT STOCK AND BOND MARKET RALLIES ARE A VOTE IN FAVOR OF MR CLINTON'S PLAN THAT IS EXPECTED TO INCLUDE 30 BILLION IN SHORTTERM STIMULUS AND A PROGRAM FOR LONGTERM DEFICIT REDUCTION BUT INVESTORS STILL WANT DETAILS THE MARKET IS SAYING IF THAT'S YOUR ECONOMIC PACKAGE THEN THAT'S GOOD NEWS MR JOHNSON SAID NOW WE'RE WAITING TO SEE ECONOMICALLY SENSITIVE STOCKS SLUMPED YESTERDAY AFTER SOARING LAST WEEK ON GROWING OPTIMISM ABOUT THE RECOVERY BUT MR JOHNSON SAID SOME INVESTORS ARE REEVALUATING THEIR ENTHUSIASM FOR CYCLICAL STOCKS A LOT OF PORTFOLIO MANAGERS ARE QUESTIONING WHETHER WE'LL HAVE A STRONG ENOUGH ECONOMY IN 1993 TO VALIDATE THE MOVE IN CYCLICAL STOCKS HE SAID WILLIAM C MATTISON JR PRESIDENT OF GERARD KLAUER MATTISON PREDICTS STOCKS WILL RESUME THEIR CLIMB AFTER A BRIEF PAUSE AND IF PRICES DECLINE HE SAID BARGAIN HUNTERS WILL SNAP UP STOCKS PEOPLE ARE HOPING THE MARKET WILL BACK OFF HERE SO THEY CAN GET BETTER PRICES MR MATTISON SAID THAT'S NOT THE KIND OF BEHAVIOR OF A MARKET PEAKING OUT WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 007 POINT TO 9401 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2404 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 973 ISSUES FELL AND 929 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN 3/8 POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT TO YIELD 719 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16565 MARKS AND 12375 YEN COMPARED WITH 16590 MARKS AND 12443 YEN FRIDAY 9302090088 930209 SAFEWAY INC REPORTS 4THPERIOD NET INCOME TOTALING 222 MILLION OAKLAND CALIF SAFEWAY INC SAID IT STILL REVERSED A YEARAGO LOSS AFTER 138 MILLION IN RESTRUCTURING CHARGES TRIMMED FOURTHQUARTER EARNINGS IN THE 17 WEEKS ENDED JAN 2 NET INCOME WAS 222 MILLION OR 19 CENTS A SHARE COMPARED WITH A LOSS OF 477 MILLION OR 48 CENTS A SHARE A YEAR EARLIER THE YEARAGO LOSS WAS CAUSED LARGELY BY THE SALE OF HOUSTON OPERATIONS AND A DROP IN SAMESTORE SALES REVENUE GREW 4 TO 485 BILLION FROM 466 BILLION PETER A MAGOWAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID SOME OF THE GROCERY CHAIN'S STORES WERE RECOVERING FROM THE RECESSION BUT THAT EFFORTS CONTINUED TO REDUCE COSTS THE 138 MILLION RESTRUCTURING CHARGES WERE FOR THE EXPECTED COSTS OF MERGING A DISTRIBUTION CENTER IN SACRAMENTO CALIF INTO A NEW ONE IN TRACY CALIF AND LAYING OFF CORPORATE STAFF HE SAID IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY SAFEWAY FELL 50 CENTS TO 13125 IN THE 53 WEEKS ENDING JAN 2 NET INCOME DROPPED 26 TO 435 MILLION OR 37 CENTS A SHARE FROM 549 MILLION OR 48 CENTS A SHARE IN THE PREVIOUS 52WEEK PERIOD BEFORE CHARGES FOR EARLY DEBT RETIREMENT AND AN ACCOUNTING CHANGE OPERATING PROFIT WAS 984 MILLION UP 25 FROM 79 MILLION REVENUE EDGED UP TO 1515 BILLION FROM 1512 BILLION MR MAGOWAN SAID PROFITS IN THE ALBERTA CANADA MARKET FELL SIGNIFICANTLY BECAUSE OF HIGH LABOR COSTS AND HE THREATENED TO ABANDON THE REGION IF TALKS WITH LABOR UNIONS DON'T CUT COSTS 9302090087 930209 BUSINESS BRIEFS NCR CORP FORMED A PARTNERSHIP WITH SIEMENS NIXDORF PRINTING SYSTEMS LP TO SERVICE SIEMENS'S NONIMPACT PRINTERS UNDER A FIVEYEAR PACT VALUED AT 35 MILLION KELLY SERVICES INC ACQUIRED PERSONAL BYRAET GROUP THE THIRD LARGEST TEMPORARY HELP COMPANY IN NORWAY FOR AN UNDISCLOSED AMOUNT CSX CORP COMPLETED THE ACQUISITION OF CUSTOMIZED TRANSPORTATION INC TERMS WERE NOT DISCLOSED ARCADIAN PARTNERS LP SIGNED A LETTER OF INTENT TO BUY THE NITROGEN CHEMICALS UNIT OF BP CHEMICALS INC A UNIT OF LONDONBASED BRITISH PETROLEUM FOR 100 MILLION CINCINNATI MILACRON INC RECEIVED AN ORDER VALUED AT 50 MILLION OVER FOUR YEARS TO MAKE FLEXIBLE MANUFACTURING CELLS FOR EATON CORP'S NORTH AMERICAN TRUCK COMPONENT PLANTS THE FIRST CELLS WERE INSTALLED IN 1992 UNISYS CORP SAID BANCO ESPIRITO SANTO E COMMERCIAL DE LISBOA OF PORTUGAL SIGNED A 128 MILLION CONTRACT FOR AN EXPANDED BRANCH NETWORK FINANCIAL SERVICES SYSTEM 9302090086 930209 WHEN CONSIDERING A VARIABLE ANNUITY RECORD OF UNDERLYING FUNDS IS CRUCIAL BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL IT'S CRUCIAL FOR INVESTORS CONSIDERING A VARIABLE ANNUITY TO LOOK AT THE PERFORMANCE OF ALL THE UNDERLYING FUNDS IN THE CONTRACT UNLIKE MUTUAL FUND INVESTORS VARIABLE ANNUITY INVESTORS CAN'T SIMPLY SHIFT THEIR MONEY FROM ONE COMPANY TO ANOTHER IN SEARCH OF BETTER RETURNS BECAUSE OF STEEP SURRENDER CHARGES AND TAX PENALTIES THE ONLY REAL OPTION FOR PEOPLE WHO BUY ANNUITIES IS TO SWITCH AMONG THE FUNDS IN THE PARTICULAR CONTRACT THEY BOUGHT SO MOST OF THOSE CHOICES BETTER BE GOOD UNFORTUNATELY INVESTORS DON'T ALWAYS BUY CONTRACTS THAT HAVE FUNDS WITH GOOD PERFORMANCE MORNINGSTAR INC A CHICAGO COMPANY THAT TRACKS THE PERFORMANCE OF MUTUAL FUNDS AND VARIABLE ANNUITIES LOOKED AT THE AVERAGE PERFORMANCE OF VARIABLEANNUITY INVESTMENT ACCOUNTS THAT HAVE BEEN IN EXISTENCE FOR MORE THAN THREE YEARS IT THEN EXAMINED HOW MANY OF THE ACCOUNTS IN EACH VARIABLE ANNUITY HAD ABOVEAVERAGE PERFORMANCE IN THE THREE YEARS ENDED DEC 31 1992 MORNINGSTAR FOUND THAT MOST OF THE 10 TOPSELLING VARIABLE ANNUITIES HAD A MAJORITY OF ACCOUNTS WITH BELOWAVERAGE PERFORMANCE THE STRIKING EXCEPTION WITH ALL FOUR OF ITS FUNDS ABOVE AVERAGE WAS IDS FLEXIBLE INVESTORS WANT TO BE LEERY OF SOMEONE WHO'S MAKING A BIG DEAL ABOUT ONLY ONE OR TWO FUNDS OR POINTING ONLY TO SHORTTERM PERIODS SAYS JENNIFER STRICKLAND EDITOR OF VARIABLE ANNUITY PERFORMANCE REPORT A PUBLICATION OF MORNINGSTAR WHEN LOOKING AT PERFORMANCE INVESTORS SHOULD PAY SPECIAL ATTENTION TO GROWTH AGGRESSIVE GROWTH AND INTERNATIONAL STOCK ACCOUNTS FOR LONGTERM INVESTORS WHICH IS WHAT PEOPLE CONSIDERING ANNUITIES SHOULD BE IT MAKES SENSE TO ALLOCATE MONEY INTO STOCKS WHICH HAVE HIGHER RETURNS OVER TIME THAN BONDS THEY ALSO SHOULD EXAMINE GROWTHANDINCOME FUNDS AND OTHER INCOMEGENERATING ACCOUNTS TO REALLY TAKE ADVANTAGE OF THE TAXDEFERRAL OF VARIABLE ANNUITIES YOU'D WANT ACCOUNTS WITH HIGHER RETURNS AND HIGHER INCOME SAYS MS STRICKLAND GOING TO THE TROUBLE OF EXAMINING ACCOUNT PERFORMANCE CAN TURN UP SOME STARS CIGNA INVESTORS V'S AGGRESSIVE GROWTH GROWTH AND GROWTH AND INCOME FUNDS WERE ALL IN THE TOP THIRD OF THEIR GROUPS ANOTHER REASON TO KEEP A LARGER SHARE OF THE MONEY IN STOCK ACCOUNTS IS TO COUNTERACT THE IMPACT OF FEES INVESTORS IN VARIABLE ANNUITIES PAY AN AVERAGE OF 125 FOR INSURANCE EXPENSES ANNUALLY THAT CAN WIPE OUT THE ADVANTAGE OF THE TAX DEFERRAL IN POORLY PERFORMING CONTRACTS HIGH FEES THE HIGH FEES ALSO SHOULD DISCOURAGE INVESTORS FROM PUTTING MONEY INTO THE MONEYMARKET ACCOUNTS IT DOESN'T MAKE SENSE TO PAY 190 A YEAR FOR CASH SAYS MS STRICKLAND WHILE THE MORNINGSTAR SURVEY GIVES INVESTORS A SENSE OF HOW TO BEGIN COMPARING PERFORMANCE THEY SHOULD USE IT AS A GUIDE NOT A BIBLE WHILE SOME VARIABLE ANNUITIES HAVE FUNDS THAT LAG IN ALMOST EVERY TIME PERIOD BY WIDE MARGINS SOME HAVE FALLEN INTO THE BELOWAVERAGE CATEGORY BY A SMALL MARGIN SO IT MAKES SENSE TO LOOK AT THE ACTUAL PERFORMANCE OF EACH ACCOUNT BEFORE DECIDING THAT THE CONTRACT IS A DOG AND THERE MAY HAVE BEEN PROMISING CHANGES NORTH AMERICAN SECURITY VENTURE WHICH LAST YEAR HAD ONLY TWO FUNDS OUT OF NINE WITH ABOVEAVERAGE PERFORMANCE IN THESE RANKINGS FIRED THE MANAGERS ON MOST OF ITS PORTFOLIOS AND SAW SIGNIFICANT IMPROVEMENT IN PERFORMANCE IN 1992 WHILE MORNINGSTAR'S SURVEY LEAVES OUT FUNDS THAT ARE NEWER THAN THREE YEARS THOSE ANNUITY ACCOUNTS TRACKED BY MORNINGSTAR WITH PERFORMANCE RECORDS GOING BACK AT LEAST THREE YEARS CONTAIN 80 OF ASSETS IN THE RETAIL VARIABLE ANNUITIES OR THOSE AVAILABLE TO INVESTORS RATHER THAN THROUGH EMPLOYER PLANS AND ACCOUNTS IN EXISTENCE AT LEAST THREE YEARS TEND TO INCLUDE THE BASIC STOCK BOND AND MONEYMARKET FUNDS THAT FORM THE BASIC TRIPOD THAT MOST INVESTORS LEAN ON AT LEAST INITIALLY 9302090084 930209 WHO'S NEWS ITT SHERATON HIRES HILTON'S GIOVENCO CEMENTING GAMBLING BUSINESS PLANS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL ITT CORP'S ITT SHERATON HOTEL UNIT CEMENTED ITS PLANS TO JUMP INTO THE GAMBLING BUSINESS BY HIRING AWAY HILTON HOTELS CORP'S TOP CASINO EXECUTIVE TO HEAD THE BIG LODGING COMPANY JOHN V GIOVENCO PRESIDENT OF HILTON'S GAMBLING OPERATIONS AND A VETERAN HOTELINDUSTRY EXECUTIVE WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF ITT SHERATON HE SUCCEEDS JOHN KAPIOLTAS WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR GIOVENCO 57 YEARS OLD WILL SUCCEED MR KAPIOLTAS AS CHIEF EXECUTIVE IN JANUARY 1994 MR KAPIOLTAS 64 WILL REMAIN CHAIRMAN THE COMPANY SAID SEPARATELY HILTON SAID RAYMOND AVANSINO JR WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE BEVERLY HILLS CALIF HOTEL AND CASINO COMPANY HE SUCCEEDS BARRON HILTON 65 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR AVANSINO 49 IS A LAWYER AND HILTON BOARD MEMBER WHO FROM 1981 TO 1984 SERVED ON THE NEVADA GAMING COMMISSION NO MENTION WAS MADE OF MR GIOVENCO'S DEPARTURE IN A NEWS RELEASE AND MR HILTON SAID NO SUCCESSOR HAS YET BEEN NAMED IN AN INTERVIEW MR AVANSINO SAID THIS IS HIS FIRST JOB WITH A CASINO AND HOTEL COMPANY RAND ARASKOG ITT CORP'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID SHERATON HAS TOYED WITH THE IDEA OF GETTING INTO THE CASINO BUSINESS FOR AT LEAST FIVE YEARS BUT HAD RENEWED ITS INTEREST WITHIN THE PAST YEAR OR SO THE COMPANY IS IN THE CASINO LICENSING PROCESS IN NEW JERSEY AND NEVADA AND IS WATCHING DEVELOPMENTS IN RIVERBOAT CASINOS MR ARASKOG SAID THE MOVE TEMPORARILY LEAVES HILTON'S LARGE PROFITABLE GAMBLING OPERATIONS WITHOUT A CHIEF AND WALL STREET ANALYSTS AND INDUSTRY COMPETITORS SAID NO OBVIOUS SUCCESSOR HAS BEEN GROOMED JOHN FITZGERALD A SENIOR HILTON CASINO EXECUTIVE THAT MANY OBSERVERS CONSIDERED A LIKELY CANDIDATE HAD PLANNED TO RETIRE LATER THIS YEAR IN AN INTERVIEW MR HILTON SAID HILTON WOULD CONSOLIDATE ITS DOMESTIC AND INTERNATIONAL GAMBLING OPERATIONS UNDER ONE DIVISION AND SAID THE COMPANY PLANNED TO PROMOTE SOMEONE FROM WITHIN TO OVERSEE THE COMBINED BUSINESSES YESTERDAY HILTON'S STOCK FELL 75 CENTS TO TRADE AT 5125 IN LATE NEW YORK STOCK EXCHANGE TRADING WHILE ITT'S STOCK WAS QUOTED AT 75125 UP 25 CENTS AT ITT MR ARASKOG CONFIRMED THAT THE COMPANY HAS APPROACHED OR HAD DISCUSSIONS WITH VIRTUALLY EVERY BIG CASINO OPERATOR ABOUT A JOINT VENTURE AND ADDED THAT MANY OF THOSE TALKS MAY LEAD TO CONTINUED INTEREST IN A JOINT PROJECT PERSONS FAMILIAR WITH THE TALKS SAY CAESARS WORLD INC MIRAGE RESORTS INC AND BALLY MANUFACTURING CORP AMONG OTHERS HAVE SAT DOWN WITH ITT MANAGEMENT IN THE PAST YEAR TO DISCUSS A JOINT PROJECT OR THE SALE OF A CASINO PROPERTY WHILE OTHERS LIKE PROMUS COS HAD PASSED UP SUCH TALKS SHERATON PAID 15 MILLION FOR A PARCEL OF LAND JUST OFF THE LAS VEGAS STRIP IN 1989 WHEN THE COMPANY WAS MORE SERIOUSLY CONSIDERING BUILDING A CASINO FROM SCRATCH MR ARASKOG SAID THE COMPANY NOW IS MORE LIKELY TO BUY AN EXISTING PROPERTY IN LAS VEGAS OR ATLANTIC CITY NJ HE SAID WHILE ITT SHERATON IS A HIGHPROFILE MEMBER OF THE ITT FAMILY IN 1991 THE DIVISION REPORTED 717 MILLION IN REVENUE COMPARED WITH 2042 BILLION IN TOTAL REVENUE FOR THE PARENT COMPANY ANALYSTS WHO COVER ITT CORP A BEHEMOTH CONGLOMERATE WITH INTERESTS IN INSURANCE FINANCIAL SERVICES AND DEFENSE SAID SOMEONE WITH MR GIOVENCO'S EXPERIENCE MAY TEMPER WALL STREET FEARS THAT SHERATON MIGHT OVERPAY TO GET INTO THE BUSINESS OR MAKE OTHER MISTAKES WITHIN THE INDUSTRY MR GIOVENCO IS WIDELY SEEN AS ONE OF THE BETTER MANAGERS WHO IN HIS 21 YEARS WITH HILTON HAS HELPED IT BECOME ONE OF THE CASINO INDUSTRY'S BIGGEST MONEYMAKERS BEFORE JOINING HILTON IN 1972 MR GIOVENCO WAS A PARTNER WITH THE ACCOUNTING FIRM PANNELL KERR FORSTER CONSIDERING THE MORIBUND STATE OF THE HOTEL AND REAL ESTATE BUSINESSES ITT SHERATON COULD USE A SHOT IN THE ARM JACK MODZELEWSKI AN ANALYST WITH PAINEWEBBER INC PROJECTS 800 MILLION IN REVENUE FOR ITT SHERATON IN 1992 WITH NO PROFIT AT THE UNIT HE SEES REVENUE OF ABOUT 900 MILLION FOR 1993 WITH ABOUT 70 MILLION IN OPERATING PROFIT DAVE KANSAS IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9302090083 930209 INTERNATIONAL SKIS ROSSIGNOL'S STOCK DIVIDEND PARIS SKIS ROSSIGNOL SA WHICH THIS YEAR PLANS TO PAY ITS FIRST DIVIDEND IN THREE YEARS SAID IT WILL OFFER HOLDERS AT LEAST 10 FRENCH FRANCS 178 A SHARE ROSSIGNOL CHAIRMAN LAURENT BOIXVIVES SAID THE RENEWED DIVIDEND WILL ACCOMPANY THE GROUP'S RENEWED PROFITS ROSSIGNOL HAD A PROFIT OF 79 MILLION FRANCS IN THE SIX MONTHS ENDED SEPT 30 FOLLOWING LOSSES IN THE PREVIOUS THREE YEARS SEPARATELY SKIS ROSSIGNOL SAID CONSOLIDATED REVENUE IN THE NINE MONTHS ENDED DEC 31 WAS UP 21 TO 155 BILLION FRANCS FROM 128 BILLION FRANCS A YEAR EARLIER 9302090082 930209 OTC FOCUS NASDAQ COMPOSITE INDEX FALLS 036 ON SELLING OF TECHNOLOGY BIOTECH STOCKS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET STUMBLED PRESSURED BY CONTINUED SELLING OF LARGE TECHNOLOGY AND BIOTECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX DROPPED 254 OR 036 TO 69844 DECLINING ISSUES OUTNUMBERED ADVANCERS 1407 TO 1307 ON TOTAL VOLUME OF 2221 MILLION SHARES DOWN FROM FRIDAY'S 2932 MILLION SHARES PROFITTAKING SLOWED FROM FRIDAY'S RAPID PACE ON FRIDAY THE INDEX HAD FALLEN 787 OR 111 TO 70098 THE SELLING WAS PRETTY ORDERLY AND HAS DEFINITELY SUBSIDED FROM FRIDAY WHEN THERE WAS A LITTLE BIT OF A PANIC SAID GARY ROSENBACH MANAGER OF EQUITY TRADING AT NEEDHAM & CO INVESTORS ARE FINDING THE PRICES OF MANY GROWTH STOCKS ON THE NASDAQ MARKET TOO HIGH AND HAVE BEEN ROTATING THEIR MONEY BACK INTO CYCLICAL STOCKS ON THE BIG BOARD SAID LOUIS TODD HEAD OF EQUITY TRADING FOR JC BRADFORD & CO IN NASHVILLE TENN SMALL STOCKS HAVE SPIKED IN THE LAST FEW MONTHS MR TODD SAID THEIR DAY IN THE SUN ISN'T OVER YET BUT INVESTORS ARE THINKING THAT THIS QUARTER THEY MIGHT BE ABLE TO GET A BETTER RETURN IN CYCLICALS THAN IN SMALL STOCKS WHICH HAVE ALREADY HAD A VERY GOOD RUNUP MR TODD SAID INVESTORS' INTEREST IN STOCKS WON'T BE DWINDLING ANY TIME SOON AMONG THE FAVORABLE SIGNS HE POINTS TO LOW INFLATION STEADY INTEREST RATES AND A GOOD ECONOMIC RECOVERY EQUALLY IMPORTANT HE SAYS IS THE CUSHION OF A LOT OF MONEY POURING INTO THE MARKET THERE REALLY ISN'T A DOWNSIDE IN STOCKS RIGHT NOW HE CONCLUDES SEVERAL LARGE TECHNOLOGY ISSUES WERE KNOCKED DOWN MICROSOFT FELL 3 1/4 TO 85 3/4 INTEL CORP EASED 3/4 TO 106 1/8 AND APPLE COMPUTER SLID 3/4 TO 56 1/2 TO AVOID EXPECTED SHORTAGES OF ITS NEXTGENERATION MICROPROCESSOR INTEL HAS ASKED PERSONALCOMPUTER MAKERS TO DELAY BY TWO MONTHS THEIR PLANS TO SELL SYSTEMS BASED ON THE NEW CHIP THE WALL STREET JOURNAL REPORTED YESTERDAY AMGEN FINISHED AT 49 3/4 DOWN 4 1/8 NASDAQ OFFICIALS SAID A LARGE TRADE WAS REGISTERED AT 407 PM SHARES OF THE THOUSAND OAKS CALIF BIOTECHNOLOGY COMPANY HAD FALLEN 5 7/8 ON FRIDAY TWO BROKERAGE HOUSES HAVE RECENTLY LOWERED THEIR RATINGS ON THE STOCK ON THURSDAY AFTER THE MARKET HAD CLOSED AMGEN REPORTED FOURTHQUARTER EARNINGS OF 91 CENTS A SHARE UP FROM 41 CENTS A SHARE A YEAR EARLIER SARAH CRAMPTON AMGEN'S DIRECTOR OF INVESTOR RELATIONS SAID THE COMPANY WAS PLEASED BY ITS FOURTH QUARTER AND 1992 RESULTS SHE SAID NOTHING HAS FUNDAMENTALLY CHANGED TO EXPLAIN THE RECENT STOCK ACTIVITY ON FRIDAY MABON SECURITIES LOWERED ITS INVESTMENT RATING OF AMGEN TO SELL FROM HOLD SAYING THAT THE SALES MOMENTUM FOR THE COMPANY'S PRODUCTS IS SLOWING MONTGOMERY SECURITIES ALSO LOWERED ITS INVESTMENT RATING ON THE STOCK TO HOLD FROM BUY BIOGEN SLID 4 5/8 TO 32 1/8 PRUDENTIAL SECURITIES DOWNGRADED THE STOCK TO HOLD FROM BUY CITING CONTINUING UNCERTAINTIES ABOUT THE PATENT STATUS OF BIOGEN'S INVESTIGATIONAL DRUG BETA INTERFERON BIOGEN OFFICIALS HAVE SAID THEY DON'T ANTICIPATE ANY OBSTACLE TO LAUNCHING THEIR PRODUCT IN THE US MARKET THE DRUG IS IN PHASE II CLINICAL TRIALS FOR TREATMENT OF HEPATITIS B AND C CERVICAL DYSPLASIA AND BASAL CELL CARCINOMA AND BIOGEN ALSO HAS PROVIDED IT FOR A NATIONAL INSTITUTES OF HEALTHSPONSORED PHASE III TRIAL FOR TREATMENT OF MULTIPLE SCLEROSIS ONE BIOTECH STOCK THAT FARED WELL REGENERON PHARMACEUTICALS ROSE 1 TO 15 1/4 VECTOR SECURITIES INTERNATIONAL ANALYST PETER DRAKE INITIATED COVERAGE OF THE TARRYTOWN NY COMPANY WITH A BUY RATING SAYING HE THINKS THE COMPANY IS ONE OF THE LEADERS AMONG THOSE SEARCHING FOR NEW TREATMENTS FOR NEURODEGENERATIVE DISORDERS AND NERVE INJURY SHAMAN PHARMACEUTICALS DROPPED 1 1/2 TO 11 1/4 25 DOWN FROM ITS INITAL OFFERING PRICE OF 15 ON JAN 27 SHAMAN OFFERED THREE MILLION SHARES THE COMPANY IS DEVELOPING TRADITIONAL PHARMACEUTICALS IDENTIFIED THROUGH A NOVEL DISCOVERY PROCESS FOCUSED ON ISOLATING ACTIVE COMPOUNDS FROM TROPICAL PLANTS WITH A HISTORY OF MEDICINAL USE SLM INTERNATIONAL JUMPED 1 3/8 TO 25 1/4 YESTERDAY'S HEARD ON THE STREET COLUMN SAID THE NEW YORK TOY MAKER'S NEW BATTERY RECHARGER COULD BOOST ITS STOCK PRICE SLM STOCK HAD JUMPED LATE LAST MONTH AFTER IT SAID IT HAD DEVELOPED A DEVICE TO RECHARGE DISPOSABLE ALKALINE BATTERIES FRESH CHOICE FELL 2 3/4 TO 28 1/4 ALEX BROWN & SONS ANALYST CAMILLE HUMPHRIES LOWERED HER INVESTMENT RATING TO HOLD FROM BUY CITING THE ISSUE'S PRICE ON FRIDAY THE RESTAURANT OPERATOR'S STOCK CLOSED AT 31 WHICH MS HUMPHRIES SAID WORKED OUT TO 52 TIMES HER 1993 PERSHARE EARNINGS ESTIMATE OF 60 CENTS ALEX BROWN WAS THE LEAD UNDERWRITER OF THE HIGHFLYING INITIAL PUBLIC OFFERING PRICED AT 13 IN DECEMBER JACK HENRY & ASSOCIATES JUMPED 1 1/4 TO 18 1/2 THE COMPANY DECLARED A 3FOR2 STOCK SPLIT PAYABLE MARCH 8 TO STOCK OF RECORD FEB 22 9302090081 930209 MARKETING & MEDIA MARKETSCAN DESENSITIZING TOOTHPASTES' SALES SHINE BY KATHLEEN DEVENY IT'S A SENSITIVE SUBJECT BUT SMITHKLINE BEECHAM INC LOVES TO TALK ABOUT IT IN SEPTEMBER THE COMPANY LAUNCHED THE LATEST VERSION OF AQUAFRESH ITS SWEETTASTING REDANDGREEN STRIPED TOOTHPASTE THE NEW PRODUCT AIMED AT CONSUMERS WITH ACHING TEETH IS CALLED AQUAFRESH SENSITIVE AND HAS ALREADY BECOME THE SECONDLARGEST DESENSITIZING TOOTHPASTE AFTER BLOCK DRUG CO'S SENSODYNE BRAND SMITHKLINE HAS SPENT MILLIONS TO INTRODUCE AQUAFRESH SENSITIVE TO CONSUMERS ALL THE HOOPLA ALONG WITH THE FACT THAT AGING BABY BOOMERS MUST INCREASINGLY COPE WITH RECEDING GUMS AND THE SENSITIVE TEETH THAT SOMETIMES FOLLOW HAS PUSHED DESENSITIZING DENTIFRICE INTO THE RANKS OF THE FASTESTGROWING HEALTH AND BEAUTYCARE PRODUCTS SALES OF THE SPECIALTY TOOTHPASTES IN SUPERMARKETS AND DRUGSTORES JUMPED 26 TO 151 MILLION DURING THE FOURTH QUARTER OF 1992 ACCORDING TO TOWNEOLLER & ASSOCIATES A SUBSIDIARY OF INFORMATION RESOURCES INC IN CONTRAST TOTAL TOOTHPASTE SALES GREW BY 8 IN THE SAME PERIOD AQUAFRESH SENSITIVE GARNERED QUARTERLY SALES OF 21 MILLION OR ABOUT 138 OF CATEGORY SALES MEANWHILE SALES OF MARKETLEADER SENSODYNE GREW 14 TO 105 MILLION LOSING GROUND IN THE CATEGORY PROCTER & GAMBLE CO'S DENQUEL THE NO 2 BRAND BEFORE THE INTRODUCTION OF AQUAFRESH SENSITIVE AND PROMISE WHICH IS ALSO MADE BY BLOCK DRUG COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LISTS OF FASTESTGROWING AND FASTESTDECLINING HEALTH AND BEAUTYCARE PRODUCTS ARE BASED ON PRODUCT SHIPMENTS RECEIVED BY 30400 SUPERMARKETS AND 12900 DRUGSTORES EACH QUARTER TOWNEOLLER RANKS 350 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 24 MILLION BY PERCENTAGE CHANGE IN SALES COMPARED WITH THE YEAREARLIER PERIOD SHOPPERS CONTINUED TO LOAD UP ON WOMEN'S PERMANENT RAZORSYSTEMS MAKING THEM THE FASTESTGROWING HEALTH AND BEAUTYCARE PRODUCT LED BY GILLETTE CO'S SENSOR FOR WOMEN SALES OF THE RAZORS AND BLADES MORE THAN QUADRUPLED TO 152 MILLION AMONG THE PRODUCTS MANY CONSUMERS PASSED OVER WERE SUCH LIQUIDDIET DRINKS AS ULTRA SLIMFAST THE LOWCALORIE MEAL REPLACEMENTS RANK AS THE FASTESTDECLINING PRODUCT CATEGORY FOR THE SECOND CONSECUTIVE QUARTER SALES OF THE DRINK MIXES IN SUPERMARKETS AND DRUGSTORES DROPPED 31 TO 412 MILLION SALES OF DIET PILLS AND DIET AIDS ALSO SLIMMED DOWN SIGNIFICANTLY AMERICANS STAYED A LITTLE HEALTHIER THROUGH DECEMBER THUS COUGH MEDICINES THERMOMETERS AND THROAT LOZENGES ALL GATHERED DUST ON RETAILERS' SHELVES IN THE FOURTH QUARTER SALES OF THE CATEGORIES DECLINED BY AS MUCH AS 18 AND NEARLY EVERY BRAND SUFFERED MARKETERS BLAME THE AILING SALES ON A COMPARISON WITH A VERY SEVERE VERY EARLY FLU SEASON IN 1991 A SPOKESWOMAN FOR AMERICAN HOME PRODUCTS CORP MAKER OF ROBITUSSIN COUGH SYRUP CONFIRMS THAT THE EARLY SALES OF COUGH REMEDIES WERE WEAK BUT ADDS THAT SALES REBOUNDED SOMEWHAT IN JANUARY SALES OF THESE PRODUCTS DEPEND HEAVILY ON THE FLU STRAINS THAT GO AROUND SAYS HEMANT K SHAH A DRUG ANALYST WITH HKS & CO IN WARREN NJ THE LONGER PEOPLE REMAIN SICK THE MORE DIFFERENT TYPES OF PRODUCTS THEY'LL BUY IN CONTRAST ALLERGY REMEDIES WERE STRONG SELLERS LAST QUARTER WITH SALES UP 35 TO 887 MILLION THE GROWTH WAS DRIVEN LARGELY BY THE OVERTHECOUNTER LAUNCH OF THE ANTIHISTAMINE TAVIST BY SANDOZ PHARMACEUTICALS CORP THE UNIT OF SWISS SANDOZ AG RECEIVED APPROVAL IN AUGUST FROM THE FOOD AND DRUG ADMINISTRATION TO SELL TAVIST PREVIOUSLY AVAILABLE ONLY BY PRESCRIPTION DIRECTLY TO CONSUMERS NEW PRODUCTS SPURRED SALES INCREASES IN MANY OF THE FASTGROWING CATEGORIES BUT SUSTAINED GROWTH ISN'T GUARANTEED FOR AQUAFRESH MAKER SMITHKLINE BEECHAM THE STAKES ARE ESPECIALLY HIGH THE LAUNCH OF ITS NEW TOOTHPASTE COMES AT A TIME WHEN SALES OF ITS CORE AQUAFRESH BRAND ARE ERODING APART FROM AQUAFRESH SENSITIVE TOTAL QUARTERLY SALES IN SUPERMARKETS AND DRUGSTORES OF THE NATION'S NO 4 TOOTHPASTE BRAND DECLINED 178 TO 213 MILLION DENTAL SENSITIVITY TYPICALLY OCCURS WHEN THE GUMLINE RECEDES OR TOOTH ENAMEL ERODES EXPOSING TINY HOLES THAT LEAD DIRECTLY TO NERVES INSIDE THE TEETH WHEN HOT COLD SWEET OR SOUR FOODS HIT THE HOLES A CHANGE IN PRESSURE STIMULATES THE NERVE AND CAUSES PAIN MOST DESENSITIZING TOOTHPASTES USE POTASSIUM NITRATE TO RELIEVE THE PAIN OF SENSITIVE TEETH BY GRADUALLY BLOCKING THE NERVE IMPULSE THE BATTLE OVER WHO WILL RELIEVE THAT PAIN GREW MORE HEATED IN MAY WHEN THE FDA APPROVED THE SALE OF TOOTHPASTES THAT COMBINE POTASSIUM NITRATE WITH FLUORIDE AQUAFRESH GOT A JUMP WITH THE FIRST DESENSITIZING PRODUCT TO CONTAIN FLUORIDE AIMED PRIMARILY AT WOMEN OVER THE AGE OF 35 THE COMPANY PITCHES AQUAFRESH SENSITIVE AS BETTER TASTING THAN EXISTING ALTERNATIVES IT IS ALSO CHEAPER AQUAFRESH IS PRICED AT ABOUT 2 FOR 25 OUNCES COMPARED WITH 3 TO 4 FOR SENSODYNE THIS IS A SLEEPY LITTLE CATEGORY NOW BUT IT'S GOING TO BE A BIG CATEGORY PREDICTS MARK PRUS SENIOR BRAND MANAGER FOR AQUAFRESH THIS IS A REAL BABYBOOMER PRODUCT WRESTING SHARE FROM ESTABLISHED CATEGORY LEADER BLOCK DRUG HOWEVER WON'T BE EASY THE COMPANY VIRTUALLY CREATED THE MARKET FOR DESENSITIZING TOOTHPASTE WITH THE LAUNCH OF ITS SENSODYNE BRAND IN 1963 SENSODYNE NOW LORDS OVER THE CATEGORY WITH NEARLY A 70 SHARE BLOCK DRUG WHICH ALSO SELLS DESENSITIZING PRODUCTS FOR USE IN DENTISTS' OFFICES IS BETTING ITS TIES TO DENTAL PROFESSIONALS WILL RESULT IN CONTINUED RECOMMENDATIONS THE COMPANY HAS ALSO RUSHED OUT A FLUORIDE VERSION OF ITS PRODUCT IT COMES IN FRESH MINT FLAVOR WHICH THE COMPANY MAINTAINS TASTES JUST AS GOOD AS ITS NEW RIVAL 9302090080 930209 MY WIFE AS ATTORNEY GENERAL BY MARK HELPRIN I WRITE IN REGARD TO INQUIRIES I HAVE RECEIVED CONCERNING THE APPOINTMENT OF MY WIFE LISA KENNEDY HELPRIN TO THE POST OF ATTORNEY GENERAL OF THE UNITED STATES THERE IS NO QUESTION THAT SHE POSSESSES THE ESSENTIAL QUALIFICATION FOR BEING THE NATION'S CHIEF LAW ENFORCEMENT OFFICIAL SHE IS A WOMAN I REALIZE THAT THESE ARE CHANGING TIMES AND THAT I MAY BE SEEN BY SOME AS COUNTERDIVERSE BUT I WOULD NOT MARRY ANYONE BUT A WOMAN NOT ONLY WAS IT COURAGEOUS OF YOU TO ALLOW YOUR WIFE TO REQUIRE THAT THE ATTORNEY GENERAL BE OF THE CORRECT SEX IT WAS OF COURSE POLITICALLY ASTUTE CERTAINLY NO ONE CAN QUESTION EITHER THE MORAL OR INTELLECTUAL BASIS OF YOUR DECISION IT FOLLOWS AS DAY FOLLOWS NIGHT THAT BECAUSE WOMEN WHO ARE THE MAJORITY ARE AN OPPRESSED MINORITY THE ATTORNEY GENERAL SHOULD BE A WOMAN ALTHOUGH REACTIONARY ELEMENTS WILL INFER SOMEHOW THAT THIS MEANS THAT THE ATTORNEY GENERAL CANNOT BE A MAN THIS NEGATIVE WAY OF LOOKING AT THE QUESTION IS PURELY GRATUITOUS IN AFFIRMATIVE ACTIONS ONE NEED NOT CONSIDER THE NEGATIVE JUST AS IN FACING THE BUDGET AND INVESTMENT DEFICITS ONE MUST ADVOCATE MORE AND LESS SPENDING SIMULTANEOUSLY AND AS EQUAL MORAL IMPERATIVES IN THE INTEREST OF FULL DISCLOSURE HOWEVER I FEEL THAT I MUST POINT OUT THAT MY WIFE DOES NOT BELIEVE THIS SHE THINKS ON THE CONTRARY THAT SHE IS CAPABLE OF ACHIEVEMENT WITHOUT REFERENCE TO HER SEX AND THAT TO FALL BACK UPON IT AS A METHOD OF SELECTION IS MEANINGLESS GIVEN THAT IN THIS COUNTRY APPROXIMATELY HALF OF THE POPULATION IS FEMALE SHE DOES HAVE CERTAIN BLIND SPOTS AND I RECOMMEND THAT DURING THE INTERVIEW YOU REFRAIN FROM SUGGESTING TO HER THAT SHE IS A VICTIM FOR IF YOU DO YOU MAY FEEL AFTERWARD THAT INDEED IT IS NOT SHE WHO IS THE VICTIM IN REGARD TO THE NEXT MOST IMPORTANT QUALIFICATION NEVER HAVING HIRED AN ILLEGAL ALIEN SHE HAS A PERFECT RECORD SHORTLY AFTER THE BIRTH OF OUR FIRST CHILD SHE LEFT THE PRACTICE OF LAW FOR THE SOLE PURPOSE OF TAKING CARE OF THE BABY AFTER THE FIRST BABY CAME YET ANOTHER AND AFTER ALMOST EIGHT YEARS SHE HAS YET TO RESUME HER CAREER THAT IS A POTENTIAL POLITICAL PROBLEM I AGREE BUT THE FACT IS THAT SHE AND I BELIEVE THAT OUR CHILDREN ARE MORE IMPORTANT THAN HER CAREER WE ALSO BELIEVE THAT OUR CHILDREN ARE MORE IMPORTANT THAN MY CAREER AND WE BELIEVE AS WELL THAT OUR CHILDREN ARE MORE IMPORTANT THAN YOUR CAREER WHICH IS ONE OF THE REASONS THAT WE DID NOT VOTE FOR YOU STILL SOME THINGS ARE OF FUNDAMENTAL IMPORTANCE AND THE FACT REMAINS THAT NOT ONLY HAS SHE NEVER HIRED AN ILLEGAL ALIEN THE OCCASIONAL BABY SITTERS THAT WE HAVE ENGAGED ARE THE REASON FOR A COMPLETE DOSSIER A RECORD OF FEDERAL AND STATE TAXES AND WORKERS' COMPENSATION LEVIES THAT WE HAVE PAID ALL DOCUMENTED WITH PROOFS OF MAILING AND THE BYZANTINE NOTATIONS THAT LAWYERS MAKE UPON THE COPIES OF DOCUMENTS THEY CAN PROVE THEY MAILED WE EXPECT THAT IN YOUR ADMINISTRATION THE GIRTH OF SUCH DOSSIERS WILL SWELL BUT IN THE DARWINIAN YEARS OF REPUBLICAN RULE THEY GREW ONLY TO A THICKNESS OF ABOUT TWO INCHES WITH REFERENCE TO THE THIRD CRITICAL QUALIFICATION ALTHOUGH SHE IS ETHNICALLY A WOMAN MY WIFE HAS NEVER TRAINED AS A PLAYBOY BUNNY NOR I MIGHT ADD IN REGARD TO MY ROLE AS A POTENTIAL POLITICAL SPOUSE HAVE I HAVE YOU QUESTIONED THE OTHER MEMBERS OF YOUR ADMINISTRATION ABOUT THIS DANGEROUS PITFALL WERE I YOU I WOULD QUICKLY TELEPHONE BOTH DONNA SHALALA AND LLOYD BENTSEN I AM HAPPY TO INFORM YOU THAT IN KEEPING WITH YOUR RECENT STANDARDS FOR THE APPOINTMENT OF ATTORNEYS GENERAL SHE HAS ABSOLUTELY NO EXPERIENCE WITH CRIMINAL LAW OR ENFORCEMENT SHE IS AN ALUMNA OF THE WALL STREET FIRM CHADBOURNE PARKE WHITESIDE AND WOLFF AND WAS FOR YEARS A CORPORATE ATTORNEY WITH CHASE MANHATTAN BANK PROBABLY HER GRADUATE LAW DEGREE IN TAXATION WILL BE MORE PERTINENT TO THE ACTIVITIES OF YOUR ADMINISTRATION THAN WOULD HAVE BEEN PRACTICE IN PUTTING THE HEAT ON CRIMINALS THE PRESS CAN BE NEUTRALIZED ON THIS POINT SIMPLY BY STRESSING THAT ONTHEJOB TRAINING IS LIKELY TO BE AVAILABLE GIVEN THE INCESTUOUS INVOLVEMENTS OF THE SECRETARIES OF COMMERCE AND THE TREASURY AND THE RELUCTANCE OF THE YOUR CHIEF ECONOMIC COORDINATOR TO TAKE LEAVE OF HIS FRIENDS YOU MIGHT FURTHER POINT OUT THAT IN AN ADMINISTRATION BASED UPON GOODNESS YOU NEVER HAVE TO SAY GOODBYE BUT YOU ALWAYS HAVE TO SAY YOU'RE SORRY LASTLY POLITICS MY WIFE COMES FROM A DEMOCRATIC FAMILY AND WAS RAISED IN BROOKLINE MASS SHE LOOKS TERRIFIC IN A SUIT IN HEELS SHE'S TALLER THAN YOU ARE AND WILL MAKE FEMINISTS FEEL GREAT AS SHE PEERS OVER YOUR HEAD DURING THE SWEARINGIN BE GRATEFUL FOR THE FACT THAT SHE'S A REPUBLICAN THAT MAY COST YOU SOME POINTS BEFORE SHE TAKES OFFICE BUT THEN YOU CAN BE ASSURED THAT SHE WILL FRY THE SPECIAL PROSECUTOR IN HIS OWN OIL WHICH CAN ONLY BE GOOD FOR YOU IN FACT NOT ONLY CAN SHE BAKE LIKE HILLARY SHE HAS A NUMBER OF RECIPES FOR LAWRENCE WALSH THAT SHE'S BEEN WANTING TO TRY SHE WON'T TELL ME EXACTLY WHAT THEY ARE BUT I PEEKED AND I KNOW THAT THEY BEGIN WITH PLUCKING EVISCERATING AND DEBONING SOME FINE POINTS PERHAPS OBSTACLES REMAIN SUCH AS THE FACT THAT SHE IS NOT COMFORTABLE WITH HILLARY RODHAM CLINTON'S ROLE IN ALL THIS POINTING OUT THAT THE FIRST LADY WAS NEITHER ELECTED APPOINTED NOR CONFIRMED AND THAT LIKE PRINCESS DI SHE CANNOT BE REMOVED EXCEPT IN A GOTTERDAMMERUNG IN FACT MY WIFE POINTS OUT THAT THE LACK OF ACCOUNTABILITY THAT ATTACHES TO THE FIRST LADY AND THAT IS NOW BEING FUSED WITH NEW POWERS HAS SHALL WE SAY THE FLAVOR OF THE SPECIAL PROSECUTOR STILL MY WIFE HAS THREE NAMES TOO ALTHOUGH YOUR WIFE SEEMS ONLY RECENTLY TO HAVE COME BY HER THREE NAMES THIS SUDDEN CHANGE COINCIDENT WITH THE ASSUMPTION OF UNPRECEDENTED POWER SOUNDS VERY MUCH LIKE THE GRANTING OR RATHER THE TAKING OF A TITLE THE PRESS FOLLOWED ITS INSTRUCTION WITH EXACTITUDE AND THE TRANSFORMATION WAS WROUGHT OVERNIGHT SUDDENLY HILLARY CLINTON BECAME HILLARY RODHAM CLINTON IT SOUNDS VERY ENGLISH DOESN'T IT AND AS IF DAN QUAYLE HAD SAID FROM NOW ON I WILL BE KNOWN AS J DANFORTH QUAYLE AND THE PRESS HAD OBEYED WITHOUT THE SLIGHTEST SARCASM WHAT WILL SHE BE NEXT PERCY DUKE OF ETHERIDGE TOINETTE DUCHESS OF THE MALDIVES I KNOW THIS IS A DIGRESSION BUT THINK OF THE FURTHER POTENTIAL IN YOUR ADMINISTRATION LEON COUNT OF PANETTA MICKEY TRADE LION OF LOS ANGELES DONNA WOMAN OF SHALALA ROBERT KEEPINTOUCH RUBIN LLOYD KING OF BREAKFASTS BENTSEN LES MONEY FOR THE MILITARY ASPIN WARREN TURNTHEOTHERCHEEK CHRISTOPHER AND ALBERT PRINCE OF THE RAIN FOREST ROYAL PRETENSIONS ARE AS HEALTHY FOR A NEW PRESIDENCY AS CHILDHOOD DISEASES ARE FOR CHILDREN THEY HELP TO BUILD IMMUNITY FOR LATER ASSAULTS DO YOU REMEMBER PRESIDENT NIXON'S DRESSING OF THE WHITE HOUSE GUARD DETACHMENT IN MERRY WIDOW HATS IT GAVE HIM STRENGTH FOR WHAT WAS TO COME LATER MR PRESIDENT AS EUROPE SLIDES TOWARD WAR YOU ARE CHURCHILLIAN TO MAKE HOMOSEXUAL RIGHTS THE CENTERPIECE OF YOUR NATIONAL SECURITY POLICY AS THE NATION REELS UNDER THE ASSAULT OF STREET CRIMINALS YOU ARE RIGHT TO FOCUS ON NANNIES AND BUNNIES AS YOUR PREDECESSOR'S BUDGET DEAL PROVED A TAX INCREASE WILL STIMULATE ANY FALTERING ECONOMY YOU KNOW THAT AND I KNOW THAT AND THE AMERICAN PEOPLE KNOW AS YOU DO THAT WE NEED A LOT MORE RED TAPE WE HAVE TO HAVE THE COURAGE TO CHANGE AMERICA AND YOU CANNOT FAIL YOU HAVE DONE GREAT SERVICE TO YOUR NATION AND NOT LEAST OF ALL TO YOUR PARTY AND YOU HAVE HONORED THE MEMORY OF PREVIOUS DEMOCRATIC PRESIDENTS FOR DURING JUST YOUR FIRST FEW WEEKS IN OFFICE YOU HAVE MADE JIMMY CARTER LOOK LIKE ABRAHAM LINCOLN UNFORTUNATELY MY WIFE IS UNENTHUSIASTIC ABOUT THESE THINGS AND THE BOTTOM LINE SIR IS THAT SHE IS STUBBORN AND ENIGMATIC WHEN I TRY TO FOCUS HER ATTENTION ON THE POST THAT SHE MAY BE ASKED TO FILL SHE SMILES PATIENTLY AND SAYS WAIT FOR KEMP WHAT COULD SHE POSSIBLY MEAN BY THAT BELIEVE IT OR NOT I DON'T THINK SHE'LL BE AVAILABLE BUT DO NOT DESPAIR HAVE YOU CONSIDERED WHOOPI GOLDBERG SHE MAY NOT BE QUALIFIED IN THE OLD WAY BUT AS LONG AS THE ATTORNEY GENERAL IS A WOMAN MUST SHE BE A LAWYER TOO MR HELPRIN A NOVELIST IS A CONTRIBUTING EDITOR OF THE JOURNAL 9302090079 930209 FORM + FUNCTION BY JOHN PIERSON SOME ARCHITECTS WOULD BEAUTIFY WHAT THEY REGARD AS A BEAST IN THE LANDSCAPE THE PARKING GARAGE THEIR DESIGNS ARE MEANT TO BETTER FIT CARS INTO PLACES OF HISTORY OR BEAUTY THE LATEST IS A FIVESTORY 410CAR GARAGE AT PRINCETON UNIVERSITY PRINCETON NJ THE FIRST PARKING STRUCTURE THE UNIVERSITY HAS ALLOWED ON ITS CAMPUS THE TOP THREE STORIES OF THE GARAGE DESIGNED BY BOSTON ARCHITECTS MACHADO & SILVETTI ARE WRAPPED IN A BRONZE LATTICE SCREEN NOT EVERYONE LIKES THE SCREEN ZIVA FREIMAN AN EDITOR AT PROGRESSIVE ARCHITECTURE SAYS THE OUTWARDCURVING TOP BEARS AN UNCOMFORTABLE RESEMBLANCE TO PRISONCAMP FENCES BUT THE AMERICAN INSTITUTE OF ARCHITECTS HAS GIVEN AN AWARD TO THE PRINCETON GARAGE WHICH IT SAYS MAKES POETRY OUT OF THE MUNDANE WHEN HE WAS MAYOR OF BALTIMORE MARYLAND GOV WILLIAM SCHAEFER ASKED WHY A GARAGE COULDN'T LOOK LIKE ANY OTHER BUILDING THE CITY HIRED AYERS SAINT GROSS A LOCAL FIRM TO DESIGN ONE FOR A NEW ARENA IN BALTIMORE'S OLD WAREHOUSE AND LOFT DISTRICT THE GARAGE ECHOES DETAILS FROM NEIGHBORING BUILDINGS INCLUDING THE ITALIANATE BROMO SELTZER TOWER OPPOSITE OTHER BUILDINGS GARAGES CAN CREATE OUTDOOR ROOMS CARNEGIE MELLON UNIVERSITY IN PITTSBURGH HIRED MICHAEL DENNIS JEFFREY CLARK OF BOSTON WHICH PLACED A GARAGE OPPOSITE A DORMITORY TO ENCLOSE A FOOTBALL FIELD AND TRACK INTEGRATED INTO ONE WALL OF THE GARAGE ARE A GRANDSTAND AND PRESS BOX FREESTANDING GARAGES AT BECTON DICKINSON'S NEW HEADQUARTERS IN FRANKLIN LAKES NJ PROVIDE STAFF WITH AN OUTDOOR WALK THROUGH AN ARCADED GARDEN WE WANTED PEOPLE TO EXPERIENCE THIS BEAUTIFUL SITE INSTEAD OF ONLY OBSERVING IT SAYS BOSTON ARCHITECT MICHAEL MCKINNELL KEVIN ROCHE SEEMS LESS INTERESTED IN OUTDOOR WALKS THAN IN CONVENIENCE THE HAMDEN CONN ARCHITECT HAS DESIGNED MANY CORPORATE HEADQUARTERS IN LEAFY SUBURBIA MOST RECENTLY ONE FOR MERCK IN WHITEHOUSE STATION NJ THERE THE PARKING IS WRAPPED INSIDE THE HEADQUARTERS BUILDING WITH VISITORS WALKING FROM THEIR CARS DIRECTLY INTO A FIVESTORY GLASSCEILINGED LOBBY WHILE EMPLOYEES PARK ON A LOWER LEVEL NOT EVERYONE WANTS TO PRETEND A GARAGE ISN'T A GARAGE THE UNIVERSITY OF IOWA AT IOWA CITY HAS A PARKING STRUCTURE MADE OF SIMPLE INDUSTRIAL MATERIALS INCLUDING CHAINLINK WALLS CHAIN LINK COSTS LESS VENTILATES BETTER AND ALLOWS PEOPLE TO SEE WHAT'S OUTSIDE AND WHAT'S IN SAYS ARCHITECT CAL LEWIS PARKING GARAGES SHOULDN'T LOOK LIKE SOMETHING ELSE MR LEWIS ADDS WILL BILL CLINTON BE A DESIGNING PRESIDENT GRAPHIC ARTISTS INDUSTRIAL DESIGNERS ARCHITECTS AND URBAN PLANNERS HAVE THEIR FINGERS CROSSED SOME 30 DESIGNERS MET IN DECEMBER WITH MEMBERS OF THE CLINTON TRANSITION TEAM AND SUGGESTED WAYS DESIGN COULD BE BROUGHT TO BEAR ON THE COUNTRY'S PROBLEMS THEIR SUGGESTIONS INCLUDED AN OVERHAUL OF FEDERAL TAX RETURNS TO MAKE THEM LESS SCARY A NATIONAL DESIGN COUNCIL SEPARATE FROM THE NATIONAL ENDOWMENT FOR THE ARTS CONVERSION OF CLOSED MILITARY BASES TO EXPERIMENTAL CITIES A PRESIDENTIAL DESIGN AWARD AND REDIRECTION OF URBAN PLANNING INTO SMALLERSCALE COMMUNITY PLANNING THEY ALSO ADVOCATED CHANGING THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S NAME TO THE DEPARTMENT OF HOUSING AND URBAN DESIGN THE DESIGNERS CAME AWAY WITH HIGH HOPES I THINK SOMETHING'S GOING TO COME OF IT SAYS TUCKER VIEMEISTER OF NEW YORK CHRISTOPHER HYLAND A CLINTON TRANSITION OFFICIAL SAYS THE MEETING PRODUCED MANY WONDERFUL IDEAS SPECIFICALLY SAYS MR HYLAND A NEW YORK FABRIC AND WALLPAPER MERCHANT THE IDEA OF RENAMING HUD IS GREAT AND THE NEW ADMINISTRATION SHOULD BE VERY RECEPTIVE TO A NATIONAL DESIGN AWARD ONE SCHOOL IN NEW YORK IS BETTING THE WAY TO A CHILD'S HEART IS THROUGH HIS EARS PUBLIC SCHOOL 23 FOR KINDERGARTEN THROUGH SECOND GRADE HAS A SOUND PLAYGROUND ALONG WITH JUNGLE GYMS AND SWINGS ARCHITECTS BILL AND MARY BUCHEN CALL THEIR DESIGN A SONIC SCULPTURE WITH WHICH KIDS CAN INTERACT FOR FUN AND INTELLECTUAL PROFIT PS 23'S NEW PLAYGROUND HAS BRONZE TABLES TO DRUM ON A CONCRETE BENCH WITH HIDDEN SOUND TUBES A SCULPTURE THAT CAPTURES CITY NOISES 17 FEET ABOVE AND BURMESE WIND CHIMES A PIPE LETS CHILDREN SING INTO A HUGE UNDERGROUND STORM DRAIN AND HEAR THEIR VOICES REVERBERATE FROM EVERY NEARBY SEWER GRATE TWO TALL STAINLESS STEEL DISHES BOUNCE SOUND BACK AND FORTH UNTIL A WAVE OF THE HAND INTERVENES THE SOUND PLAYGROUND WHICH COST 180000 IS ONE OF 31 WORKS NEW YORK PLANS AT PUBLIC SCHOOLS UNDER A LAW THAT REQUIRES 1 OF THE COST OF EVERY PUBLIC BUILDING TO BE SPENT ON ART VANDALISM IS A WORRY BUT THE SONIC ART IS COATED AGAINST GRAFFITI AND BOLTED DOWN AGAINST THEFT 9302090078 930209 LOEWS TO TAKE MAJOR CHARGE DUE TO ASBESTOS CNA UNIT'S WOES TO MEAN LOSS IN FOURTH QUARTER OF ABOUT 500 MILLION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LOEWS CORP WILL TAKE A FOURTHQUARTER CHARGE OF 567 MILLION STEMMING FROM A 15 BILLION ADDITION TO ASBESTOSRELATED LOSSES AT ITS INSURANCE UNIT CNA FINANCIAL CORP AS A RESULT OF THE CNA ACTION AND UNRELATED ACCOUNTING CHANGES ANALYSTS EXPECT LOEWS TO POST A FOURTHQUARTER LOSS OF ABOUT 500 MILLION LOEWS SAID IT WILL STILL SHOW A PROFIT OF 120 MILLION OR 182 A SHARE FOR ALL OF 1992 LOEWS BECOMES THE LATEST OF SEVERAL COMPANIES TO SUFFER A HUGE LOSS RELATING TO HAVING INSURED AN ASBESTOS MAKER AND OTHERS ARE EXPECTED TO FOLLOW OVER THE NEXT YEAR YOU'RE GOING TO SEE SOME MATERIAL HITS AS COMPANIES ADMIT EXPOSURE SAID KEITH BUCKLEY AN ANALYST WITH DUFF & PHELPS IN CHICAGO MUCH OF THE LOEWS EXPOSURE RELATES TO FIBREBOARD CORP A CONCORD CALIF BUILDING SUPPLY COMPANY CNA INSURED FIBREBOARD FOR 22 MONTHS BEGINNING IN 1957 CNA ANNOUNCED YESTERDAY IT HAS BEGUN SETTLEMENT NEGOTIATIONS WITH FIBREBOARD WHICH HAS SUED CNA TO MAKE GOOD ON THE INSURANCE POLICY THE RESERVE ADDITION AMOUNTING TO AN 863ASHARE CHARGE FOR LOEWS SPARKED A SELLOFF YESTERDAY IN THE STOCKS OF LOEWS AND CNA WHICH IS 83 OWNED BY LOEWS AND HAS SOME PUBLICLY TRADED SHARES ON THE NEW YORK STOCK EXCHANGE LOEWS FELL 2875 TO CLOSE AT 111375 AND CNA FELL 3125 TO CLOSE AT 97125 INVESTORS WERE SURPRISED AT THE MAGNITUDE OF THE LOSS MR BUCKLEY SAID ON THE AMERICAN STOCK EXCHANGE FIBREBOARD SOARED 31 RISING 2625 TO CLOSE AT 11125 IN A STATEMENT FIBREBOARD SAID IT WAS PLEASED THAT CNA HAS PUBLICLY ACKNOWLEDGED ITS POTENTIAL LIABILITY LOEWS DID NOT SPECIFY THE SIZE OF ITS EXPECTED FOURTHQUARTER LOSS BUT MERRILL LYNCH ANALYST ALLAN KAPLAN ESTIMATED THE COMPANY WILL HAVE A LOSS OF 498 MILLION OR 757 A SHARE LOEWS A TOBACCO AND INSURANCE COMPANY RUN BY FINANCIER LAURENCE TISCH WILL REPORT RESULTS NEXT WEEK IN A STATEMENT CNA ACKNOWLEDGED MORE ASBESTOS LOSSES COULD BE COMING ALTHOUGH THE TIMING AND SIZE COULD NOT BE PREDICTED CNA JOINS AETNA LIFE & CASUALTY CORP AND THE INSURANCE UNIT OF ITT CORP IN ADDING TO ITS RESERVES FOR ASBESTOS WHICH ALONG WITH POLLUTION CLAIMS IS ONE OF THE BIGGEST CLOUDS HANGING OVER THE INSURANCE INDUSTRY AETNA'S ANNOUNCEMENT LAST WEEK OF A 180 MILLION FOURTHQUARTER CHARGE FOR ASBESTOS AND POLLUTION CLAIMS FUELED THE BELIEF THAT INSURERS ARE COMING CLEAN ON THEIR EXPOSURES AND SPARKED A RALLY LAST WEEK IN PROPERTY AND CASUALTY STOCKS STOCKS ROSE IN HOPES THAT INSURERS WILL RAISE PRICES TO RECOVER THEIR ASBESTOS AND POLLUTION LOSSES AS WELL AS LOSSES ON HURRICANE ANDREW THUS HELPING TO PUT AN END TO THE PRICE WAR THAT HAS DRIVEN DOWN PROPERTY AND CASUALTY INSURANCE PREMIUMS FOR FIVE YEARS FOR CNA THE RESERVE ADDITION CONTRIBUTES TO A LOSS OF 335 MILLION OR 550 A SHARE FOR THE YEAR STANDARD & POOR'S CORP LOWERED THE CLAIMSPAYING ABILITY RATING OF CNA TO DOUBLEAPLUS FROM TRIPLEA AND ALSO LOWERED ITS CREDIT RATING MOODY'S INVESTORS SERVICES INC PUT THE FINANCIAL STRENGTH RATING OF CNA'S INSURANCE UNITS AS WELL AS ITS CREDIT RATING ON REVIEW FOR A POSSIBLE DOWNGRADE ANALYSTS SAID CNA REMAINS FINANCIALLY STRONG LOEWS SAID ITS FOURTHQUARTER RESULTS WILL ALSO BE AFFECTED BY A CHARGE OF 123 MILLION OR 186 A SHARE BECAUSE IT ADOPTED ACCOUNTING RULES RELATED TO POSTRETIREMENT BENEFITS AND INCOME TAXES 9302090077 930209 WHO'S NEWS MCKESSON CORP MCKESSON CORP SAN FRANCISCO ROBERT G FUNARI 45 WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENTGENERAL MANAGER AT THE MCKESSON DRUG CO SUBSIDIARY 9302090076 930209 THIS ROCK AND THE ROCK OF AGES AREN'T A MIX THEY'D CALL DIVINE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL A SOUTHERN BAPTIST CONVENTION RADIO PROGRAM AIMED AT THE UNCONVERTED BARELY AVERTED SERVING UP MUSIC ADORED BY SPIKEHAIRED ANARCHISTS THE PROGRAM POWERLINE TYPICALLY OFFERS AN HOURLONG BROADCAST OF TOP 40TYPE SECULAR MUSIC INTERSPERSED WITH INSPIRATIONAL MESSAGES BUT INSTEAD OF THE USUAL PROGRAM FARE MORE THAN 70 STATIONS LATE LAST MONTH RECEIVED FRESH FRUIT FOR ROTTING VEGETABLES A RERELEASED COMPACT DISK OF THE 1979 ALBUM BY A DEFUNCT PUNKROCK GROUP THE DEAD KENNEDYS APPARENTLY A SUBCONTRACTOR MIXED UP A BOX OF THE GROUP'S DISKS WITH THE FEB 5 POWERLINE PROGRAM THUS THE SUBCONTRACTOR SENT OUT TO SOME MEMBER STATIONS DISKS CARRYING THE POWERLINE PROGRAM SEAL BUT LOADED WITH PUNK MUSIC WHICH THE SOUTHERN BAPTIST CONVENTION LABELS VULGAR AND HIGHLY OFFENSIVE IF THAT DISK HAD AIRED IT WOULD'VE BEEN TRAGIC SAYS DOUG DILLARD VICE PRESIDENT EXTERNAL AFFAIRS AT THE SOUTHERN BAPTIST RADIO AND TELEVISION COMMISSION IN FORT WORTH TEXAS WHICH PRODUCES POWERLINE BUT IT WAS MARKED CLEARLY DO NOT AIR BEFORE FEB 5' SO WE WERE ABLE TO CHASE THEM DOWN BEFORE THEY COULD GET ON THE AIR POWERLINE IS BROADCAST ON SECULAR STATIONS IN NONCOMMERCIAL PUBLICSERVICE SLOTS AND USUALLY SUCH PROGRAMS ARE PLACED ON THE AIR WITH LITTLE OR NO REVIEW TO AVOID AN HOURLONG TRIBUTE TO THE DEAD KENNEDYS SEVERAL MEMBERS OF THE COMMISSION WORKED THE PHONES FEVERISHLY ONCE THE ERROR WAS DISCOVERED IN TWO DAYS THE COMMISSION INFORMED 900 MEMBER STATIONS ABOUT THE PUNK MUSIC HIDING BEHIND THE SOUTHERN BAPTIST LABEL THUS FAR 72 VULGAR DISKS HAVE BEEN FOUND THE COMMISSION WANTS THE DISKS TO BE DESTROYED IF THEY ARE FOUND WHY I LISTENED TO THAT MUSIC AND OH MAN THERE'S ONE SONG ON THERE THAT JUST USES A PROFANITY OVER AND OVER AGAIN SAYS MR DILLARD THAT'S NOT MUSIC TYPICALLY AIRED ON POWERLINE' THE DEAD KENNEDYS DISK FEATURES SUCH SONGS AS KILL THE POOR AND I KILL CHILDREN THE LATTER SONG OPENS WITH THE LYRICS GOD TOLD ME TO SKIN YOU ALIVE 9302090075 930209 NASD MAKES BID TO TRADE INDEX WARRANTS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC TOOK A MAJOR STEP TOWARD OPENING UP TRADING OF SECURITIES TIED TO ITS VAST OVERTHECOUNTER MARKET THE SELFREGULATORY GROUP FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR PERMISSION TO TRADE INDEX WARRANTS BASED ON THE MOVEMENT OF SECURITIES TRADED THROUGH THE NASDAQ SYSTEM THE NASD ENVISIONS LISTING INDEX WARRANTS ON A NUMBER OF MARKET SLICES SUCH AS THE NASDAQ 100 THE NASDAQ COMPOSITE INDEX NASDAQ FINANCIAL STOCKS AND THE NASDAQ/NATIONAL MARKET SYSTEM COMPOSITE INDEXES THE WARRANTS WOULD BE TRADED THROUGH MAJOR INVESTMENT HOUSES THAT CHOOSE TO MAKE A MARKET IN THEM THE NASD ACTUALLY FILED LAST YEAR AND GOT APPROVAL IN PRINCIPLE TO TRADE WARRANTS BUT THE LATEST FILING IS THE FIRST THAT SPECIFICALLY CALLS FOR INSTRUMENTS TIED TO PARTICULAR INDEXES THE NASD IN THE EARLY 1980S LAUNCHED BUT FOLDED AN OPTION BASED ON THE NASDAQ 100 THIS TIME SAID RICHARD KETCHUM NASD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER THERE SEEMS TO BE CONSIDERABLE INTEREST AMONG MAJOR COMPANIES AND FINANCIAL HOUSES TO TRADE IN NASDAQBASED WARRANTS HE NOTED THAT WARRANTS BASED ON MOVEMENTS OF FOREIGN STOCK MARKETS SUCH AS THE JAPANESE NIKKEI INDEX HAVE BEEN VERY SUCCESSFUL THE NASD ISN'T ALONE IN PROPOSING SUCH INSTRUMENTS THE NEW YORK STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE AND THE CHICAGO BOARD OPTIONS EXCHANGE HAVE MADE SIMILAR FILINGS TO TRADE WARRANTS ON INDEXES CONNECTED WITH THEIR MARKETS MR KETCHUM SAID HE EXPECTS THE SEC WOULD MAKE A DECISION ON ALL THE PROPOSALS FOR DOMESTIC INDEX WARRANTS AT ONCE AMONG OTHERS THE NASD IS PROPOSING INDEX WARRANTS ON THE NASDAQ COMPOSITE INDEX WHICH CONSISTS OF 4012 SECURITIES INCLUDING 2885 ON THE NASDAQ/NATIONAL MARKET SYSTEM AND 1127 ON THE NASDAQ SMALLCAP LIST AT YEAR END THE COMPOSITE INDEX INCLUDED 72 MAJOR INDUSTRY GROUPS WITH TOTAL CAPITALIZATION OF 6152 BILLION WE HAVE A DESIRE TO PROVIDE A MORE COMPLETE ABILITY FOR INSTITUTIONS TO BE ABLE TO HEDGE IN OUR STOCKS SAID MR KETCHUM AND TO TAKE LARGER AND LARGER POSITIONS IN THOSE SECURITIES WE MAY BE ABLE TO FILL A VOID IN ADDITION THE FILING SAID CORPORATE BORROWERS MIGHT BE ABLE TO LOWER INTEREST COSTS BY TYING BORROWINGS TO MOVEMENT OF AN INDEX INDUCING DEBT PURCHASERS TO ASSUME SOME MARKET VOLATILITY RISK THE FILING IF APPROVED COULD HAVE A MAJOR IMPACT SUGGESTED SAM SCOTT MILLER A SECURITIES ATTORNEY AND FORMER GENERAL COUNSEL AT PAINEWEBBER GROUP I THINK THE PERCEPTION IS THAT THIS COULD BE A REALLY HUGE MARKET IF YOU LOOK AT WHAT THE AMEX HAS DONE WITH ITS SPIDERS IT HAS ONLY BEEN ABOUT 10 DAYS BUT IT'S GOTTEN A SPECTACULAR RECEPTION THE AMEX IN JANUARY BEGAN TRADING SOCALLED SPIDERS OR STANDARD & POOR'S DEPOSITARY RECEIPTS WHICH ARE BOUGHT AND SOLD LIKE A COMMON STOCK BUT LOOK LIKE AN INDEX FUND EACH SPIDER REPRESENTS AN INTEREST IN A TRUST HOLDING SHARES OF THE STOCKS IN THE BENCHMARK S&P 500 INDEX THE SPIDER PRODUCT HAD BEEN ON THE DRAWING BOARD FOR A LONG TIME MR MILLER SAID SO THE FACT THAT PRODUCTS LIKE THAT HAVE BEEN SO WELL RECEIVED SUGGESTS THE MARKET COULD BE A GRAND ONE WE THINK THE NASD IS JUMPING ON THE BANDWAGON SAID CATHY FITZPATRICK A SPOKESWOMAN AT THE AMEX WE SAW A NEED FOR THIS TYPE OF INSTRUMENT A LONG TIME AGO WE WERE AT THE FRONT OF THE LINE WITH THE SEC GOING INTO THIS AREA AND WE EXPECT TO BE AT THE FRONT COMING OUT WHEN THE SEC GRANTS ANY APPROVALS FOR SUCH WARRANTS INVESTMENT MANAGERS T ROWE PRICE ASSOCIATES WOULD CERTAINLY HAVE TO TAKE A LOOK AT THE NEW WARRANTS AS MONEY MANAGERS SEARCH FOR WAYS TO INVEST CASH POURING INTO SMALL STOCKS T ROWE PRICE HEAD TRADER ANDREW M BROOKS SAID MORE AND MORE PEOPLE ARE LOOKING FOR WAYS TO BOTH HEDGE THEIR SMALLCAP INVESTMENTS AND PUT THEIR MONEY TO WORK HE SAYS BUT MR BROOKS SAYS IT IS TOO SOON TO TELL IF THE NEW NASDAQ WARRANTS WILL THRIVE AMID THE PLETHORA OF SIMILAR OPTIONS AND WARRANTS AVAILABLE ON OTHER EXCHANGES THE MARKET WILL DETERMINE WHICH ONES ARE REALLY VALUABLE AND WHICH ONES DIE ON THE VINE HE NOTED WARRANTS SOMEWHAT SIMILAR TO OPTIONS GIVE THE HOLDER THE RIGHT TO BUY SECURITIES AT STIPULATED PRICES FOR A PARTICULAR PERIOD OF TIME BUT WARRANTS BASED ON FOREIGN EXCHANGE MARKETS ARE TIED TO MARKET INDEXES AND ARE SETTLED IN CASH WHEN THEY ARE SOLD OR EXPIRE THE NASDAQ WARRANTS WOULD HAVE A LIFE OF UP TO THREE YEARS JIM COLLINS CHAIRMAN OF INSIGHT CAPITAL MANAGEMENT AND RESEARCH INC A CALIFORNIA INVESTOR IN NASDAQ STOCK AND PUBLISHER OF A MARKET INVESTMENT LETTER WASN'T THRILLED AT THE NEWS YOU HIT A SORE SPOT WITH ME HE SAID WE DON'T NEED ANY MORE VOLATILITY THAN WE'VE GOT ALREADY THIS DOESN'T BENEFIT INDIVIDUAL INVESTORS OR CAPITAL MARKETS THERE ARE SO MANY DERIVATIVE PRODUCTS WE CERTAINLY DON'T NEED ANY MORE 9302090074 930209 HEALTH FIRMS USE FINANCIAL INCENTIVES TO MAKE EMPLOYEES SEEK LOWER HEALTHCARE FEES BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL HELL HAS NO FURY LIKE A PERSON FACED WITH THE PROSPECT OF PAYING HUNDREDS AND PERHAPS THOUSANDS OF EXTRA DOLLARS FOR MEDICAL CARE AT LEAST THAT IS THE THEORY IN AN INCREASINGLY POPULAR LINE OF ATTACK BY COMPANIES AGAINST RISING HEALTHCARE SPENDING PUSHING EMPLOYEES TO BECOME MORE KNOWLEDGEABLE AND MORE AGGRESSIVE BUYERS OF MEDICAL SERVICES AND FORCING THEM TO PAY MORE OF THE BILL IF THEY DON'T THE ROUGHLY 139 MILLION PEOPLE IN THE US COVERED BY CORPORATE HEALTH PLANS TRADITIONALLY HAVE BEEN A PASSIVE BUNCH WHEN IT COMES TO COMPARISON SHOPPING FOR MEDICAL CARE AFTER ALL DESPITE YEARS OF CORPORATE WAILING ABOUT EXPLODING HEALTHCARE BILLS THE AVERAGE ANNUAL DEDUCTIBLE FOR INDIVIDUAL COVERAGE UNDER A CONVENTIONAL PLAN TO CITE ONE EXAMPLE ROSE JUST 17 IN 1991 TO 205 FROM 188 IN 1990 ACCORDING TO A NEW STUDY IN HEALTH AFFAIRS A HEALTHPOLICY JOURNAL WITH THAT IN MIND AND WITH HEALTHCARE SPENDING NATIONWIDE EXPECTED TO JUMP BETWEEN 12 AND 15 A YEAR FOR THE NEXT FIVE YEARS COMPANIES ARE URGING WORKERS OFTEN WITH A COMBINATION OF CARROT AND STICK TO SHOP FOR MEDICAL CARE AS THEY WOULD ANY OTHER SERVICE AT INTERNATIONAL PAPER CO MANY EMPLOYEES NOW HAVE ACCESS TO REAMS OF DATA POINTING THEM TO PROVIDERS OF QUALITY MEDICAL CARE AT REASONABLE COSTS AT THE SAME TIME THE CEILING ON WHAT SOME EMPLOYEES COULD PAY OUT OF THEIR OWN POCKETS FOR HEALTH CARE HAS JUMPED TO 6500 A YEAR AT AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP UNIT A NEW FEE SCHEDULE SHOWS WHAT THE COMPANY WILL PAY FOR SOME 11000 PROCEDURES GIVING PATIENTS A STARTING POINT TO TALK MONEY WITH PHYSICIANS BEFORE TREATMENT BEGINS EMPLOYEES WHO DON'T USE THE COMPANY'S MANAGEDCARE NETWORKS COULD END UP PAYING A HIGHER PERCENTAGE OF SOME DOCTORS' BILLS SOME COMPANIES LIKE QUAKER OATS CO PROVIDE PROFILES OF LOCAL HOSPITALS WHICH INCLUDE AVERAGE CHARGES AVERAGE LENGTH OF STAY AND HOW OFTEN A PARTICULAR HOSPITAL HANDLES A PARTICULAR SURGERY OTHERS LIKE DOMINION RESOURCES INC PASS ALONG INFORMATION ABOUT WIDE DISPARITIES IN PRESCRIPTIONDRUG PRICES STILL OTHERS OFFER REWARDS FOR FINDING ERRORS IN HOSPITAL BILLS CORPORATE AMERICA HAS BEEN TALKING ABOUT MAKING PEOPLE RESPONSIBLE FOR HEALTHCARE DECISIONS BUT IT HASN'T PROVIDED THE TOOLS SAYS MICHAEL F MCALLISTER A PRINCIPAL AT FOSTER HIGGINS BENEFITS CONSULTANTS IN NEW YORK NOW THERE'S INFORMATION AVAILABLE AND A REAL FINANCIAL INCENTIVE TO ACT APPROPRIATELY WHILE THE IDEA OF SHOPPING FOR AFFORDABLE HEALTH CARE MIGHT SOUND LOGICAL LOGIC HASN'T ALWAYS PLAYED A PART IN THE MEDICAL MARKETPLACE ALMOST TWOTHIRDS OF PATIENTS ACCORDING TO A GALLUP SURVEY NEVER BROACH THE TOPIC OF MONEY WITH THEIR DOCTORS BEFORE TREATMENT WHAT'S MORE THE VAST MAJORITY OF CONSUMERS ACCORDING TO A NEW STUDY HAVEN'T THE VAGUEST NOTION WHAT MEDICAL SERVICES ACTUALLY COST WHEN ASKED TO ESTIMATE THE CHARGE FOR A COMPLETE PHYSICAL THOSE POLLED CITED FIGURES RANGING FROM 8 TO 2500 EVEN THE AVERAGE ESTIMATE OF ALL RESPONDENTS 270 WAS MORE THAN TWICE THE ACTUAL NATIONAL AVERAGE FOR A CHECKUP 111 THE ATTITUDE SEEMS TO BE THAT NO MATTER WHAT'S WRONG PHYSICALLY MEDICAL TECHNOLOGY WILL FIX IT AND THE COMPANY WILL PAY FOR ALL OF IT SAYS J KENNERLY DAVIS JR VICE PRESIDENT AND CORPORATE SECRETARY AT DOMINION RESOURCES A UTILITY HOLDING COMPANY IN RICHMOND VA THERE'S NO PERSONAL RESPONSIBILITY AND THAT'S CONTRIBUTED TO THE COST ESCALATION THAT EMPLOYERS ARE CONCERNED ABOUT UNTIL RECENTLY MANY PATIENTS COULDN'T COMPARISON SHOP FOR MEDICAL SERVICES IF THEY WANTED DOCTORS HOSPITALS AND INSURERS WERE LOATH TO PART WITH INFORMATION ON FEES AND QUALITY OF CARE CLAIMING THAT THE DATA COULD BE MISINTERPRETED OR ABUSED TODAY COMPANIES LIKE MEDIRISK INC A HEALTHCARE CONSULTING FIRM IN ATLANTA ARE COMING TO RESEMBLE MEDICAL VERSIONS OF CONSUMER REPORTS PROVIDING AMMUNITION THAT EMPLOYERS CAN PASS ALONG TO WORKERS MEDIRISK WHICH SPONSORED THE SURVEY ON CONSUMERS' KNOWLEDGE OF THE COST OF PHYSICALS AND OTHER PROCEDURES HAS LONG PROVIDED INSURERS AND MEDICAL PROVIDERS WITH INFORMATION ON PHYSICIAN FEES ITS DATABASE DRAWS FROM SOME 350 MILLION CLAIMS REPRESENTING 200000 DOCTORS NOW THE COMPANY IS CLOSE TO TESTING A MEDICAL HOT LINE IN WHICH CONSUMERS COULD DIAL AN 800 NUMBER TO FIND OUT THE HIGHEST AND LOWEST PHYSICIAN FEES AS WELL AS THE AVERAGE INSURANCE PAYMENT FOR MORE THAN 7500 PROCEDURES THE KNOWLEDGE GAP AMONG CONSUMERS IS TREMENDOUS SAYS MARK A KAISER CHIEF EXECUTIVE OF MEDIRISK WHO NOTES THAT DOCTORS' BILLS CAN VARY BY AS MUCH AS 500 IN A SINGLE ZIP CODE WE HAVE TO EDUCATE PEOPLE THAT THEY CAN SHOP FOR FEES THAT EDUCATION IS NOW UNDER WAY AT INTERNATIONAL PAPER AFTER WATCHING MEDICAL EXPENSES CLIMB AS MUCH AS 20 A YEAR DURING THE 1980S THE PURCHASE NY COMPANY LAST YEAR ADOPTED A HEALTHCARE PLAN THAT PROVIDES SALARIED EMPLOYEES WITH DATA ABOUT THE COST AND QUALITY OF DOCTORS AND HOSPITALS AS WELL AS FINANCIAL INCENTIVES TO PERSUADE THEM TO USE THE DATA TODAY SALARIED EMPLOYEES WITH FAMILY COVERAGE MAKING BETWEEN 25000 AND 50000 A YEAR CAN PAY AS MUCH AS 4600 A YEAR FOR MEDICAL CARE BEFORE THE COMPANY STARTS TO COVER 100 OF EXPENSES UP FROM 2900 PREVIOUSLY THOSE MAKING MORE THAN 50000 FACE AN OUTOFPOCKET MAXIMUM OF 6500 FOR FAMILY COVERAGE NATIONWIDE ALMOST TWOTHIRDS OF EMPLOYERS LIMIT THAT FIGURE TO 3000 OR LESS ACCORDING TO A FOSTER HIGGINS SURVEY WE COULDN'T GET THEIR ATTENTION UNLESS THEY HAD SOME SUBSTANTIAL PERSONAL FINANCIAL INVOLVEMENT SAYS JERRY BOWER DIRECTOR OF SPECIAL HEALTH PROJECTS INDEED THE IDEA FOR INTERNATIONAL PAPER'S EMPLOYEES IS TO AVOID COMING ANYWHERE NEAR THOSE OUTOFPOCKET MAXIMUMS BY USING THE COMPANY'S DATA TO SHOP FOR MEDICAL PROVIDERS WHO WILL ACCEPT INTERNATIONAL PAPER'S REIMBURSEMENT AS PAYMENT IN FULL OR WHO AT THE VERY LEAST ARE WILLING TO TALK PRICE FOR INSTANCE AN EMPLOYEE WHO LIVES IN GREENVILLE SC AND IS FACING GALLBLADDER REMOVAL CAN TAP THE COMPANY'S FILES TO LEARN THAT INTERNATIONAL PAPER WILL PAY MAXIMUMS OF 1219 TO THE SURGEON 257 A DAY FOR A SEMIPRIVATE HOSPITAL ROOM AND 178 A DAY FOR NURSING CARE THAT ISN'T ALL THE FILES INFORM THE EMPLOYEE THAT 19 SURGEONS IN THE AREA CHARGE AS LITTLE AS 958 AND AS MUCH AS 1900 TO DO THE PROCEDURE THE LISTING INCLUDES EACH PHYSICIAN'S NAME OFFICE ADDRESS AGE SEX AND OFFICE HOURS IT ALSO LISTS WHERE THE DOCTORS WENT TO MEDICAL SCHOOL WHERE THEY DID THEIR RESIDENCY WHETHER THEY ARE BOARD CERTIFIED WHICH HOSPITALS THEY WORK IN AND WHETHER THEY WILL DISCUSS FEES FOR EMPLOYEES WHO FEEL INTIMIDATED SIMPLY BY SETTING FOOT IN A PHYSICIAN'S OFFICE THE COMPANY ALSO PROVIDES A VIDEO THAT SHOWS HOW A PATIENT MIGHT NEGOTIATE A FEE WITH A RELUCTANT DOCTOR BY THE END OF THE VIDEO THE PHYSICIAN IS WON OVER BY THE PERSISTENT EMPLOYEE I REALLY WASN'T AWARE MY FEES WERE ON THE HIGH SIDE AND AGREES TO LOP 300 FROM HIS BILL IT'S TOUGH TO NEGOTIATE THE COMPANY'S MR BOWER CONCEDES BUT THE ALTERNATIVE IS TOUGHER MONEY OUT OF A PATIENT'S POCKET THAT LESSON WAS DRIVEN HOME FOR ROBERT M BYRNES SENIOR VICE PRESIDENT FOR HUMAN RESOURCES AT INTERNATIONAL PAPER WHEN HE HAD SURGERY ON EACH KNEE ONLY AFTER THE FIRST OPERATION DID HE LEARN THAT HIS DOCTOR'S FEE WAS ABOUT 400 ABOVE THE AMOUNT REIMBURSED BY THE COMPANY I DIDN'T EVEN CHECK THE NUMBERS BEFOREHAND OUT OF PURE HABIT MR BYRNES SAYS THE BILL FOR THE SECOND OPERATION AFTER A DISCUSSION WITH HIS DOCTOR MR BYRNES SAYS WAS IN LINE WITH INTERNATIONAL PAPER'S COVERAGE ALL OF US HAVE BECOME CONDITIONED TO TAKING WHAT A DOCTOR SAYS AS GOSPEL MR BYRNES SAYS TODAY THE REALITY IS I COULD HAVE HAD MY OPERATION DONE IN A NUMBER OF DIFFERENT PLACES YOU JUST DON'T PAY STICKER PRICE FOR AN AUTOMOBILE INTERNATIONAL PAPER MR BOWER NOTES HAS STOPPED PAYING STICKER PRICE AS WELL THE COMPANY ESTIMATES THAT UNDER THE NEW PLAN IT HAS SLOWED ANNUAL INCREASES IN HEALTHCARE SPENDING TO ABOUT 9 CONSUMERS HAVE LITTLE KNOWLEDGE OF WHAT MEDICAL CARE ACTUALLY COSTS THE FOLLOWING REPRESENTS SURVEYED PERCEPTIONS OF PHYSICIAN CHARGES 9302090073 930209 INTERNATIONAL CLINTON COULD TAKE A LESSON FROM JAPAN TOKYO HAS SHOWN IT KNOWS HOW TO CUT DEFICITS BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS BILL CLINTON STRUGGLES TO TAME THE BLOATED US BUDGET DEFICIT HE MIGHT TAKE A CUE FROM JAPAN IN THE LATE 1970S RECESSIONPANICKED POLITICIANS LED JAPAN ON A FIVEYEAR DEFICITSPENDING SPREE THAT DROVE IT TO THE BRINK OF FISCAL RUIN SINCE THEN JAPAN HAS CLAWED ITS WAY BACK IN 1990 THE JAPANESE GOVERNMENT KICKED A 15YEAR HABIT OF ISSUING DEFICIT BONDS JAPAN WAS THE ONLY MAJOR INDUSTRIALIZED NATION TO POST A GENERAL BUDGET SURPLUS IN 1991 AND IS LIKELY TO DUPLICATE THAT FEAT IN THE CURRENT FISCAL YEAR WHICH ENDS MARCH 31 JAPAN'S NET DEBT AT THE GOVERNMENT LEVEL THE TALLY OF ASSETS AND LIABILITIES HELD BY CENTRAL AND LOCAL GOVERNMENTS AND THE SOCIAL SECURITY SYSTEM IS ABOUT 5 OF THE COUNTRY'S ECONOMIC OUTPUT THAT'S LESS THAN A SIXTH OF THE AVERAGE FOR THE LEADING INDUSTRIALIZED COUNTRIES THAT MAKE UP THE ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT JAPAN'S BONDDEPENDENCE RATIO OR THE CENTRAL GOVERNMENT'S DEBT AS A PERCENTAGE OF SPENDING HAS FALLEN TO 11 A THIRD OF ITS PEAK IN 1979 AND ABOUT HALF THE BONDDEPENDENCE RATIO OF THE US IT'S A REMARKABLE ACHIEVEMENT SAYS YUKIO NOGUCHI A HITOTSUBASHI UNIVERSITY ECONOMIST OF JAPAN'S FISCAL COMEBACK I CAN'T THINK OF ANOTHER NATION THAT HAS SUCCEEDED IN SLASHING ITS DEFICIT SO BOLDLY HOW DID JAPAN DO IT IT'S A QUESTION ON WHICH EXPERTS DISAGREE BUT THE SIMPLE ANSWER APPEARS TO BE THAT JAPAN ATTACKED ITS DEFICIT WITH FISCAL POLICIES THAT WERE THE MIRROR IMAGE OF THOSE ADOPTED IN THE US UNLIKE AMERICA WHICH WAS CUTTING TAXES AND ALLOWING SPENDING TO BALLOON JAPAN CHOKED SPENDING AND LET TAX REVENUES CLIMB GROWTH IN CENTRAL GOVERNMENT SPENDING WHICH ROARED AHEAD AT AN AVERAGE ANNUAL RATE OF 19 THROUGHOUT THE 1970S GROUND ALMOST TO A HALT BETWEEN 1983 AND 1987 AND LAGGED THE ACCELERATION OF THE OVERALL ECONOMY FOR THE REST OF THE DECADE THE CENTRAL GOVERNMENT MEANWHILE TOOK IN MORE THAN 18 TRILLION YEN 145 BILLION IN TAX REVENUE ABOVE EXPENDITURES BETWEEN 1985 AND 1990 ECONOMISTS ATTRIBUTE MUCH OF THE REVENUE WINDFALL TO A BOOMING ECONOMY AND SOARING ASSET PRICES WHICH BOOSTED TAXES ON CORPORATE PROFITS INCOMES STOCK AND PROPERTY BUT THEY CITE A PASSIVE MEASURE TOO LETTING INFLATION PUSH TAXPAYERS INTO HIGHER TAX BRACKETS THE SOCALLED BRACKET CREEP TO BE SURE MANY OF THE ECONOMIC CIRCUMSTANCES AND POLITICAL ARRANGEMENTS BEHIND JAPAN'S RETRENCHMENT ARE UNIQUE MOREOVER ANALYSTS SAY OBSESSION WITH DEBTREDUCTION HAS BLINDED BUDGET OFFICIALS TO THE SEVERITY OF THE PRESENT SLUMP JAPAN'S FISCAL CRISIS STARTED IN THE 1970S WHEN KAKUEI TANAKA A MASTER OF THE PORK BARREL DOMINATED NATIONAL POLITICS MR TANAKA LAUNCHED A BOLD SPENDING DRIVE TO REMODEL THE JAPANESE ARCHIPELAGO BUT BY 1979 JAPAN HAD RUN UP A DEFICIT SO STAGGERING THAT MANY PEOPLE DECIDED GOVERNMENT FINANCES HAD ROCKETED OUT OF CONTROL FEARFUL THAT BUSINESS WOULD HAVE TO PICK UP THE TAB KEIDANREN JAPAN'S CHIEF BUSINESS FEDERATION JOINED FORCES WITH A FEW POWERFUL POLITICIANS TO CRUSADE AGAINST GOVERNMENTAL EXCESS KEIDANREN'S FORMER CHAIRMAN TOSHIO DOKO WAS DISPATCHED TO LEAD A GOVERNMENT ADVISORY COMMITTEE WITH SWEEPING AUTHORITY TO MONITOR PUBLICSPENDING POLICIES IN THE NEXT FIVE YEARS THE GROUP DRAWING HEAVILY ON BUREAUCRATS IN THE FINANCE MINISTRY INTRODUCED A HOST OF SPENDING RESTRICTIONS MR DOKO WAS A PERSUASIVE SPOKESMAN FOR REFORM STRESSING SELFRELIANCE AND COLLECTIVE SACRIFICE BOTH FAVORITE VIRTUES IN JAPAN HE WON SUPPORT FOR SPENDING LIMITS THE GOVERNMENT ADDED TO THE SENSE OF URGENCY BY DECLARING THE DEFICIT A NATIONAL EMERGENCY IN 1981 RIGID BUDGET RULES AIDED THE EFFORT JAPAN'S BUDGET CODE FORCES POLICY MAKERS TO DRAW A SHARP DISTINCTION BETWEEN PUBLIC INVESTMENT AND CONSUMPTION THE GOVERNMENT MUST ISSUE CONSTRUCTION BONDS TO FINANCE PROJECTS SUCH AS BRIDGES AND ROADS AND DEFICIT BONDS TO COVER EXPENDITURES SUCH AS HEALTH AND WELFARE LEGALLY THE DISTINCTION IS CRUCIAL DEFICIT BONDS UNLIKE CONSTRUCTION BONDS CAN'T BE ISSUED WITHOUT SPECIAL LEGISLATION AND BECAUSE APPROVAL APPLIES ONLY TO THE CURRENT FINANCIAL YEAR THE GOVERNMENT HAS TO SEEK NEW PARLIAMENTARY PERMISSION TO ISSUE DEFICIT BONDS EACH YEAR TRUE THOSE RESTRICTIONS DIDN'T KEEP JAPAN FROM RUNNING UP HUGE DEFICITS IN THE FIRST PLACE BUT POLICY MAKERS SAY THEY RAISED THE POLITICAL COSTS OF OVERSPENDING ONCE THE DEBTREDUCTION CRUSADE WAS LAUNCHED MANY ANALYSTS SAY FORCING INTEREST GROUPS TO SACRIFICE PROPORTIONATELY HAS ALSO MADE A DIFFERENCE IN 1982 JAPAN ADOPTED A MINUS CEILING SYSTEM UNDER WHICH GOVERNMENT AGENCIES MUST ASK FOR LESS MONEY TO COVER ADMINISTRATIVE COSTS THAN THEY RECEIVED THE PREVIOUS YEAR WITH THE EXCEPTION OF DEFENSE AND FOREIGN AID THE FINAL BUDGET SHARES FOR MAJOR SPENDING CATEGORIES DON'T CHANGE SUBSTANTIALLY FROM YEAR TO YEAR DISTRIBUTING THE PAIN EVENLY HELPS NEUTRALIZE POLITICAL OPPOSITION BUDGET POLICY MAKERS SAY ON THE TAX SIDE JAPAN'S TRADITIONAL AVERSION TO INDEXING ARRANGEMENTS THAT PEG TAX RATES TO INFLATION HELPED THE GOVERNMENT HANG ON TO REVENUE THAT MIGHT OTHERWISE HAVE BEEN LOST DURING THE ECONOMY'S BOOM YEARS SO TOO DID JAPAN'S NEW 3 TAX ON CONSUMPTION MANY PEOPLE GIVE THE POWERFUL FINANCE MINISTRY PRIMARY CREDIT FOR ORCHESTRATING THE NATION'S FISCAL TURNAROUND THE BUDGET BUREAU ENJOYS BROAD DISCRETIONARY AUTHORITY AND OFTEN EXERCISES WHAT AMOUNTS TO A LINEITEM VETO OVER THE SPENDING PROPOSALS OF OTHER MINISTRIES SINCE THE RUNAWAY DEFICITS OF THE 1970S MINISTRY OFFICIALS HAVE DEVELOPED AN ALMOST RELIGIOUS COMMITMENT TO FISCAL CONSERVATISM EVEN MORE SO NOW THAT THE NATION'S POPULATION IS AGING AND WILL LIKELY NEED MORE GOVERNMENT SUPPORT IN COMING YEARS MINISTRY OFFICIALS TAKE PRIDE IN THE AUSTERITY OF THEIR TOKYO HEADQUARTERS A DRAFTY WARREN OF CUBICLES CRAMMED WITH DOCUMENTS OUR FUNCTION IS NOTHING MORE THAN PREACHING FISCAL DISCIPLINE SAYS EISUKE SAKAKIBARA AN OFFICIAL IN THE MINISTRY'S INTERNATIONAL FINANCE BUREAU OTHER ANALYSTS HOWEVER INSIST THAT JAPAN'S ONEPARTY POLITICAL SYSTEM DOMINATED BY THE LIBERAL DEMOCRATIC PARTY SHOULD GET THE CREDIT WHEN YOU HAVE ONE PARTY IN CONTROL OF THE GOVERNMENT IT CAN MAKE THE HARD DECISIONS SAYS GREGORY NOBLE A POLITICAL SCIENTIST AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY BUT WHILE IT MAY HAVE WORKED WELL IN THE PAST THE OLD DEBTFIGHTING COALITION MAY NOW BE UNRAVELING FACING RECESSION FINANCE MINISTRY OFFICIALS ARE RESISTING INCREASING CALLS FOR DEFICIT SPENDING WHILE MANY BUSINESS AND POLITICAL LEADERS HAVE BROKEN RANKS WITH THE BUREAUCRATS AND ARE ADVOCATING A TAX CUT AS IT STANDS THE GOVERNMENT IS LIKELY TO SUFFER A LARGE REVENUE SHORTFALL IN THE NEXT FINANCIAL YEAR ECONOMISTS SAY 9302090072 930209 JACK IN THE BOX PARENT SAYS SALES FELL FOLLOWING ILLNESSES LINKED TO BURGERS BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL FOODMAKER INC SAID SALES AT ITS JACK IN THE BOX RESTAURANT CHAIN PLUNGED 30 TO 35 IN THE PAST TWO WEEKS REFLECTING THE OUTBREAK OF A BACTERIAL INFECTION LINKED TO CONTAMINATED HAMBURGER MEAT THE COMPANY ALSO SAID IT WILL RESUME AGGRESSIVE PRODUCTORIENTED MARKETING SHORTLY FOLLOWING CONTINUED AIRING OF SPECIAL ADVERTISEMENTS EXPLAINING THE COMPANY'S RESPONSE TO THE OUTBREAK FOODMAKER DISCLOSED THE DROP IN SALES AT THE CHAIN IN ITS REPORT OF SHARPLY HIGHER EARNINGS FOR THE FIRST QUARTER ENDED JAN 17 NET INCOME MORE THAN QUADRUPLED TO 109 MILLION OR 28 CENTS A SHARE FROM 24 MILLION OR 10 CENTS A SHARE A YEAR AGO SALES ROSE TO 479 MILLION FROM 447 MILLION THE SAN DIEGOBASED COMPANY OWNS AND OPERATES 720 OF THE 1151 DOMESTIC JACK IN THE BOX RESTAURANTS OPERATED IN 13 STATES CONCENTRATED IN CALIFORNIA AND TEXAS THE COMPANY FRANCHISES THREE RESTAURANTS IN HONG KONG AND ONE IN MEXICO A SPOKESWOMAN WOULDN'T GIVE THE SPECIFIC DOLLAR AMOUNT FOR RECENT SALES A COMPANY STATEMENT SAID SALES AT THE FASTFOOD CHAIN FELL 28 OVER THE PRIOR YEAR DURING THE WEEK OF JAN 18 WHEN THE FIRST FOODCONTAMINATION CASES WERE WIDELY REPORTED SALES FOR THE NEXT TWO WEEKS DROPPED 30 TO 35 AS MEDIA ATTENTION INTENSIFIED THE COMPANY SAID AS OF FRIDAY ONE CHILD HAD DIED AND 425 PEOPLE HAD BECOME ILL MOSTLY IN WASHINGTON STATE AFTER EATING JACK IN THE BOX HAMBURGERS CONTAMINATED WITH A STRAIN OF THE E COLI BACTERIA AND THEN COOKED UNDER FEDERAL REGULATIONS AT 140 DEGREES FAHRENHEIT 15 DEGREES BELOW A MORE STRINGENT WASHINGTON STATE REGULATION FOODMAKER SAID IT NOW COOKS HAMBURGERS TO EXCEED WASHINGTON STATE'S REQUIREMENT OF 155 DEGREE JACK IN THE BOX HAS FEATURED ITS CHAIRMAN JACK GOODALL IN TELEVISION COMMERCIALS IN WHICH HE DISCUSSES THE CRISIS AS A PARENT AND GRANDPARENT ALSO THE COMPANY HAS PROMISED TO PAY HOSPITAL BILLS OF AFFECTED CHILDREN AND IT HAS CONTRIBUTED MONEY TO FIGHT HEMOLYTIC UREMIC SYNDROME THE DISEASE THAT KILLED A WASHINGTON BOY WHO ATE A TAINTED BURGER FOODMAKER HAS SET UP A TOLLFREE TELEPHONE NUMBER TO HANDLE INQUIRIES ABOUT THE OUTBREAK THE COMPANY HALTED ALL JACK IN THE BOX PRODUCT ADS AFTER JAN 18 BUT PLANS TO RESUME THEM IN A PERIOD OF DAYS THE SPOKESWOMAN SAID SOME ANALYSTS HAVE CRITICIZED THE COMPANY FOR ITS CRISIS MANAGEMENT STRATEGY SAYING THAT IT WAS SLOW TO REACT AND TO ACCEPT BLAME FOR THE PROBLEM AT ITS OUTLETS FOODMAKER SAID IT HAS A CRISIS TEAM IN PLACE CONSISTING OF ABOUT 12 MEMBERS NONE OF THEM OUTSIDE CONSULTANTS FOODMAKER MANAGEMENT WILL LIKELY SPEND TIME ANSWERING SHAREHOLDER QUESTIONS ABOUT ITS HANDLING OF THE SITUATION AT THE COMPANY'S ANNUAL MEETING FRIDAY IN SAN DIEGO 9302090071 930209 LET CLINTON TASTE HIS OWN MEDICINE BY HARRY SCHWARTZ ONE OF PRESIDENT CLINTON'S KEY THEMES IS THE NEED FOR HEALTHCARE REFORM HE WANTS TO CUT OUR HEALTHCARE BILL SUBSTANTIALLY AND CREATE UNIVERSAL ACCESS FOR MILLIONS OF AMERICANS WITHOUT HEALTH INSURANCE HIS PRESCRIPTION FOR ACCOMPLISHING THIS IS THE INTRODUCTION OF WHAT HE CALLS MANAGEDCARE COMPETITION ALONG WITH SPENDING CEILINGS ON THE ENTIRE HEALTHCARE SYSTEM MR CLINTON CAN MAKE A MAJOR CONTRIBUTION TO ACHIEVING HIS HEALTHCARE GOALS IF HE WILL GO ONE EXTRA STEP BY SUBJECTING HIMSELF AND HIS FAMILY TO THE DISCIPLINE THAT HE PRESCRIBES FOR THE REST OF US LET ME EXPLAIN IN RECENT TIMES THE HEALTH CARE OF AMERICAN PRESIDENTS HAS BEEN LAVISH EVERY PRESIDENT HAS HAD HIS OWN PERSONAL PHYSICIAN BACKED UP BY A STAFF OF OTHER DOCTORS WHO ARE AVAILABLE AROUND THE CLOCK WHEN PRESIDENTS HAVE TRAVELED THEY HAVE HAD AT LEAST ONE PERSONAL DOCTOR WITH THEM AND THE SECRET SERVICE HAS ALWAYS MADE SURE THAT IT HAD A GOOD CONVENIENT HOSPITAL CLOSE BY IT HAS BEEN TAKEN FOR GRANTED THAT WHENEVER THE PRESIDENT WAS ILL HE COULD BRING IN THE COUNTRY'S FINEST SPECIALISTS OF HIS OWN CHOOSING THE OUTSTANDING RECENT EXAMPLE WAS PRESIDENT REAGAN'S PROSTATE OPERATION NORMALLY THIS IS A RATHER ROUTINE PROCEDURE THAT CAN BE DONE BY INNUMERABLE EXPERTS IN EVERY LARGE CITY BUT FOR MR REAGAN A LARGE TEAM OF DOCTORS AND TECHNICIANS PLUS THEIR SPECIAL MACHINERY WAS FLOWN TO WASHINGTON FROM THE MAYO CLINIC IN ROCHESTER MINN NOBODY WOULD DENY THAT THE PRESIDENT SHOULD HAVE COMPETENT MEDICAL CARE BUT IN THE PAST THIS HAS MEANT CARE THAT HAD NO MONETARY LIMITATIONS SINCE THE US TREASURY WAS PICKING UP THE BILL MR CLINTON'S PREDECESSORS PRESUMABLY FELT NO ANOMALY IN THEIR LUXURIOUS HEALTHCARE SETUPS BUT MR CLINTON SHOULD CUTTING BACK ON HEALTHCARE EXTRAVAGANCE IS PRECISELY WHAT HE HAS BEEN STRESSING HE'S EVEN SAID THAT UNLESS WE CAN PUT A BRIDLE ON THE ESCALATING COST OF HEALTH CARE WE CAN'T DO ANYTHING ELSE THAT'S IMPORTANT SINCE HE FEELS THAT WAY WOULD IT NOT BE APPROPRIATE FOR HIM TO SET A PERSONAL EXAMPLE BY ENDING ALL THE FRILLS AND FURBELOWS THAT HAVE TRADITIONALLY ACCOMPANIED PRESIDENTIAL HEALTH CARE FOR EXAMPLE WASHINGTON HAS A NUMBER OF MANAGED CARE ORGANIZATIONS WHY DOESN'T MR CLINTON ENROLL HIMSELF AND HIS FAMILY AS MEMBERS IN OF THOSE HMOS HE COULD ALSO LAY DOWN THE RULE THAT HE DOESN'T WANT ANY SPECIAL PRIVILEGES THAT HE IS WILLING TO WAIT DAYS OR WEEKS FOR AN APPOINTMENT IF NEED BE AND THAT IF HE IS ILL HE EXPECTS TO BE TAKEN CARE OF ON NORMAL TRIAGE PRINCIPLES ALLOWING THE RELATIVE SEVERITY OF HIS ILLNESS TO DETERMINE WHEN AND IF HE GETS THE TREATMENT HE WANTS BY PROVIDING A PUBLIC EXAMPLE OF HIS OWN WILLINGNESS TO SUBJECT HIMSELF AND HIS FAMILY TO THE VIRTUES AND THE DEFECTS OF MANAGEDCARE COMPETITION HE COULD DO MUCH TO PERSUADE MILLIONS OF HIS FELLOW CITIZENS TO UNDERTAKE THE SAME ADVENTURE IF HE PREFERS THE COSTBEDAMNED MEDICALCARE SETUP OF HIS PREDECESSORS HE SHOULD NOT BE SURPRISED IF THE AMERICAN PEOPLE SHOW THEY WANT TO FOLLOW THAT SAME PRINCIPLE MR SCHWARTZ WHO HAS WRITTEN EXTENSIVELY ON HEALTH CARE IS A FORMER MEMBER OF THE EDITORIAL BOARD OF THE NEW YORK TIMES 9302090069 930209 KASLER SHAREHOLDER PROPOSES MERGER WITH HIS CONCERN BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MONTANA INDUSTRIALIST DENNIS R WASHINGTON WHO HOLDS AN 83 STAKE IN KASLER CORP PROPOSED A MERGER OF THE SOUTHERN CALIFORNIA HIGHWAY BUILDER WITH A PRIVATE CONSTRUCTION AND MINING CONCERN HE OWNS THE PLAN DISCLOSED IN A SECURITIES AND EXCHANGE COMMISSION FILING CALLS FOR FORMATION OF A HOLDING COMPANY THAT WOULD ACQUIRE KASLER AND WASHINGTON CONTRACTORS GROUP INC AN AFFILIATE OF MR WASHINGTON'S THAT DOES MINING AND HEAVY CONSTRUCTION IN THE WESTERN PART OF THE US KASLER CHAIRMAN JL FELLER RECEIVED THE PROPOSAL OVER THE WEEKEND AND DID HAVE GENERAL CONVERSATIONS ABOUT IT WITH MR WASHINGTON'S REPRESENTATIVES SAID A SPOKESMAN FOR THE HIGHLAND CALIF HEAVYCONSTRUCTION COMPANY HE DECLINED TO DISCUSS SPECIFICS OF THE TALKS OR TO COMMENT ON THE MERGER PLAN THE NEW HOLDING COMPANY WHICH WOULD RETAIN THE KASLER NAME AND CONTINUE TO BE PUBLICLY TRADED WOULD BE CONTROLLED BY MR WASHINGTON THROUGH WASHINGTON CONTRACTORS GROUP MISSOULA MONT HE WOULD HOLD A STAKE OF BETWEEN 65 AND 69 IN THE NEW COMPANY WITH THE MINORITY INTEREST OWNED BY EXISTING KASLER STOCKHOLDERS THE FILING DIDN'T EXPLAIN WHAT MECHANISM WOULD BE USED TO JOIN THE TWO COMPANIES OR TO HOW TO VALUE THE TRANSACTION WE ARE CONFIDENT THAT YOU WILL FIND THE PROPOSAL TO BE FAIR AND IN THE BEST INTEREST OF THE SHAREHOLDERS EMPLOYEES AND OTHER CONSTITUENCIES OF KASLER MR WASHINGTON WROTE IN A FEB 6 LETTER TO MR FELLER THAT WAS ATTACHED TO THE FILING THE COMBINED COMPANIES WOULD HAVE MULTIPLE CONSTRUCTION CAPABILITIES AND BE FINANCIALLY STRONG HE SAID WASHINGTON HAD NET INCOME OF 136 MILLION ON REVENUE OF 1336 MILLION IN THE YEAR ENDED NOV 30 THE FILING SAID KASLER HAD NET OF 65 MILLION ON REVENUE OF 1619 MILLION IN THE YEAR ENDED OCT KASLER WOULD REMAIN AN INDEPENDENT BUSINESS ENTITY AND THE MANAGEMENT WOULD REMAIN THE SAME FOLLOWING THE MERGER ACCORDING TO THE FILING THE HOLDING COMPANY BOARD WOULD CONSIST OF NINE DIRECTORS FIVE INDEPENDENT TWO FROM KASLER AND TWO FROM WASHINGTON CONTRACTORS MR WASHINGTON DISCLOSED A LARGE OWNERSHIP STAKE IN KASLER IN JANUARY AND SAID HE INTENDED TO SEEK BOARD REPRESENTATION SINCE THEN HE HAS CONTINUED TO PURCHASE KASLER SHARES FROM JAN 29 TO FEB 3 HIS DW HOLDINGS FURTHER INCREASED ITS STAKE IN KASLER BY PURCHASING AN ADDITIONAL 57100 COMMON SHARES AT PRICES FROM 1025 TO 1075 A SHARE DW HOLDINGS NOW HOLDS 828100 COMMON SHARES OF KASLER KASLER'S STOCK CLOSED YESTERDAY AT 1075 A SHARE DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE TRADING THE SEC FILING SURFACED AFTER THE CLOSE OF TRADING 9302090068 930209 ADVERTISING MTV IS PLAYING A NEW RIFF RESPONSIBILITY BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL ROCK REBELS ZAPPING TO MTV MAY DO A DOUBLE TAKE THESE DAYS MTV WHICH ONCE AFFECTED AN ANTIESTABLISHMENT STYLE NOW URGES ITS YOUNG THRONGS OF VIEWERS TO READ MORE BOOKS ABSTAIN FROM DRUGS AND REGISTER TO VOTE THE PROUDTOBEMINDLESS MUSIC CHANNEL FORMERLY AN OBSTINATE OASIS FROM PREACHY PARENTS NOW WARNS AGAINST THE EVILS OF EXCESSIVE DRINKING AND ENCOURAGES KIDS TO TAKE BETTER CARE OF THE ENVIRONMENT COULD IT BE THAT MTV WHICH GAVE US THE SPIKESTUDDED LEATHERFEST KNOWN AS HEADBANGERS BALL IS GOING GOODYGOODY MAINSTREAM NOW THAT IT HAS BEEN AROUND A DOZEN YEARS THE CABLE CHANNEL LAUNCHES A NEW THINKPOSITIVE CAMPAIGN THIS MONTH EXHORTING THE YOUNG AND FECKLESS TO FREE YOUR MIND AND EMBRACE DIFFERENT RACES RELIGIONS AND LIFESTYLES IN ONE NEW SPOT AN ELDERLY WHITE WOMAN LOOKS INTO THE CAMERA AND SPEAKS WITH THE VOICE OF A YOUNG BLACK MAN ONE DAY YOU WILL WAKE UP IN AN AMERICA WHICH IS MORE BLACK MORE SPANISH AND MORE ASIAN THAN WHITE A LOT OF WHITE PEOPLE ARE AFRAID OF WHAT WOULD HAPPEN TO THEM IN A NONWHITE AMERICA THE CAMERA ZOOMS IN ARE YOU AFRAID SOME BELIEVE MTV'S PROSOCIAL MESSAGES MIGHT BE BETTER SUITED TO SAY PBS I DON'T KNOW IF MTV SHOCKS ANYONE ANYMORE WORRIES TIM MARSH A 33YEAROLD MEMBER OF THE ZZ TOP INTERNATIONAL FAN CLUB ALTHOUGH HE ALLOWS THAT THE NEW MESSAGES SOUND GOOD AND WE NEED MORE MESSAGES LIKE THAT MTV EXECUTIVE VICE PRESIDENT SARA LEVINSON SAYS THE CHANNEL IS SIMPLY SERVING UP WHAT ITS VIEWERS WANT WE'RE NOT SAYING HERE'S WHAT YOU SHOULD THINK' WE ARE SAYING HERE'S WHAT YOU'VE TOLD US YOU THINK MATTERS' SHE SAYS IF SOCIAL RESPONSIBILITY SELLS WELL TO HEADBANGERS IT SELLS EVEN BETTER TO BLUECHIP ADVERTISERS SPONSORS THAT WOULDN'T BE CAUGHT DEAD UNDERWRITING THE LIKES OF YO MTV RAPS OR THE VIOLENT ANIMATION OF LIQUID TELEVISION ARE EAGER TO ADVERTISE DURING MORE ACCEPTABLE MTV FARE SUCH AS ITS RECENT ELECTION COVERAGE OR A NEW DOCUMENTARYLIKE SHOW ON SOUTH CENTRAL LOS ANGELES STRAIGHT FROM THE HOOD THIS YEAR MTV'S ADVERTISING REVENUE IS EXPECTED TO GROW 15 TO SOME 182 MILLION DOUBLE THE LEVEL OF JUST FIVE YEARS AGO FORECASTS CONSULTING FIRM PAUL KAGAN ASSOCIATES INC THE NETWORK A UNIT OF CABLE OPERATOR AND PROGRAMMER VIACOM INC CONTINUES TO HAVE HIGHER SELLOUT PERCENTAGES EVEN THOUGH IT RAISED THE AVERAGE PRICE PER SPOT BY 14 LAST YEAR ACCORDING TO SANFORD C BERSTEIN & CO SOME OF THE BIGGEST NAMES IN CORPORATE AMERICA ARE EXPRESSING VIEWS OF MTV THAT WOULD MAKE A RAPPER CRINGE MTV HAS NOTICEABLY BACKED OFF ITS HARD EDGE SAYS ROBERT WATSON DIRECTOR OF ADVERTISING SERVICE AT AMERICAN TELEPHONE & TELEGRAPH WHICH HAS INCREASED ITS ADVERTISING ON THE NETWORK RECENTLY I APPLAUD IT SAYS MR WATSON IT'S HELPING ADVERTISERS FEEL BETTER BECAUSE OF THE SOCIAL MESSAGES THEY'RE SENDING OUT FORD MOTOR TOO HAS BEGUN TO ADVERTISE MORE ON MTV THAN IT EVER DID BEFORE LARGELY BECAUSE MTV HAS DEFINITELY MATURED OVER THE YEARS WITH ITS PROGRAMMING CONCEPT SAYS BOB GILLOLY AN ADVERTISING MANAGER WITH FORD HE PREDICTS THAT THE AUTO MAKER WILL CONTINUE TO ADVERTISE DURING MTV'S SOCIALLY RESPONSIBLE PROGRAMMING SUCH AS ITS RECENT CHOOSE OR LOSE VOTER CRUSADE IF MTV'S MS LEVINSON IS HAPPY TO HEAR SUCH PRAISE SHE ISN'T ADMITTING IT IF WE START LISTENING TO WHAT ADVERTISERS THINK SHE MAINTAINS THAT'S THE SECOND WE LOSE TOUCH WITH OUR AUDIENCE WE HAVE TO BE TRUE TO OUR AUDIENCE OR THEY WILL LOSE FAITH IN EVERYTHING WE'RE DOING MTV REACHES SOME 57 MILLION CABLE HOUSEHOLDS AND ITS AUDIENCE AVERAGES ABOUT 05 OR FEWER THAN 300000 HOMES ALMOST ONETHIRD OF THE CHANNEL'S AUDIENCE CONSISTS OF KIDS AGED 12 TO 17 BUT 18TO34 YEAR OLDS COMPRISE 55 OF THE MTV SET THESE YOUNG ADULTS MTV SAYS HAVE A SOCIAL CONSCIENCE AND ARE TRULY CONCERNED ABOUT THE ECONOMY EDUCATION AND AIDS DEMOGRAPHERS LIKEWISE SAY GENERATION XERS AS THE TWENTYSOMETHING SET IS CALLED FEEL BETRAYED BY THE 1980S AND NOW WANT TO ASSUME PERSONAL AND SOCIAL RESPONSIBILITY TO THAT END MTV WILL AIR A PROGRAM ABOUT HATEROCK AROUND THE WORLD AND NEWS FEATURES ON SUCH TOPICS AS GAYS IN THE MILITARY ONE PUBLIC SERVICE AD SHOWS A SERIES OF PEOPLE CALLING OUT ONEWORD RACIAL SLURS AND ENDS WITH THE TAG RACIST WHICH ONE ARE YOU ANOTHER SPOT INVOKES THE BEATING OF BLACK MOTORIST RODNEY KING IN LOS ANGELES AND THE SUBSEQUENT BEATING OF A WHITE TRUCK DRIVER IN THE LATER RIOTS ALL ILLUSTRATED WITH NEWSPAPER CUTUP FIGURINES THE NEW FREE YOUR MIND CAMPAIGN COMES ON THE HEELS OF A PUBLICRELATIONS WINDFALL THAT MTV REAPED WITH ITS ELECTION COVERAGE IT WAS DESIGNED TO EDUCATE AND MOTIVATE YOUNG PEOPLE TO VOTE THE EFFORT WENT SO FAR AS TO EXPLAIN WHAT EXACTLY A DEMOCRAT AND REPUBLICAN ARE AND THE DIFFERENCE BETWEEN A PRIMARY AND A CAUCUS THE NATIONAL CONVENTIONS WERE COVERED THROUGH THE UNLIKELY EYES OF A MEMBER OF THE BAND MEGADETH AND A RAPPER FROM THE GROUP NAUGHTY BY NATURE MTV'S COVERAGE CULMINATED WITH THE ULTIMATE SANCTION BY THE ESTABLISHMENT AS PRESIDENT CLINTON MADE A CHUMMY LATENIGHT APPEARANCE AT MTV'S INAUGURAL BALL IN TOTAL MTV AIRS MORE THAN 10000 PUBLICSERVICE SPOTS EACH YEAR BUT IF THE NETWORK HAS CHOSEN SOME CATEGORIES OF TOLERANCE SUCH AS RACE TO PREACH ABOUT IT HAS LEFT OTHERS SUCH AS THE SOCALLED YEAR OF THE WOMAN VIRTUALLY UNMENTIONED TOM WOLZIEN OF BERNSTEIN RESEARCH PREDICTS THAT BY PERSISTING IN THE CURRENT CROP OF DARK LEATHERY METAL VIDEOS THE RECORDING STUDIOS AND MTV MAY BEGIN TO DRIVE AWAY FEMALE VIEWERS HE WARNS THAT WOULD HAVE AN ADVERSE EFFECT ON RATINGS AND DEMOGRAPHIC IMPACT ON MTV AND THEREFORE ADVERSELY AFFECT REVENUE SHAQ ENDORSEMENT PEPSICO'S PEPSICOLA UNIT SIGNED SHAQUILLE O'NEAL A CENTER FOR THE NATIONAL BASKETBALL ASSOCIATION'S ORLANDO MAGIC TO AN INTERNATIONAL FIVEYEAR ENDORSEMENT CONTRACT EXACT TERMS WEREN'T DISCLOSED BUT PEPSI SAID IT WAS A MULTIMILLION DOLLAR DEAL MR O'NEAL IS SLATED TO BE SEEN THIS SPRING IN NEW TV COMMERCIALS FOR PEPSI AND ON A 7FOOT1INCH CARDBOARD CUTOUT IN SUPERMARKETS PROMOTING SHAQ PACK 12PACKS OF THE SOFT DRINK 9302090067 930209 PEPPERAND SALT BY EACH HIM AND HER FOR GUSTO IN EATING IS THAT OF SELFRIGHTEOUSNESS 9302090066 930209 HOFFENBERG BIDDER FOR NEW YORK POST IS ACCUSED OF FRAUD IN SEC CIVIL SUIT BY JONATHAN M MOSES AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES AND EXCHANGE COMMISSION SUED STEVEN HOFFENBERG WHO IS OFFERING TO RESCUE THE STRUGGLING NEW YORK POST ACCUSING HIM OF FRAUDULENTLY SELLING MILLIONS OF DOLLARS IN SECURITIES ISSUED BY TOWERS FINANCIAL CORP THE HUGE DEBTCOLLECTION COMPANY HE CONTROLS THE SEC'S CIVIL SUIT CONCERNS ABOUT 215 MILLION IN NOTES PRIVATELY PLACED WITH 2800 INVESTORS AROUND THE NATION THE SUIT ALLEGES THAT MR HOFFENBERG MISLED INVESTORS BY OVERSTATING THE FINANCIAL BACKING FOR THOSE NOTES AND THAT THE SECURITIES AREN'T LEGALLY REGISTERED ALTHOUGH THE ALLEGED MISCONDUCT HASN'T CAUSED ANY LOSSES TO INVESTORS THE SEC SAID THAT MUCH OF THE INVESTORS' MONEY IS UNACCOUNTED FOR THE AGENCY ADDED THAT IT'S ALSO CONCERNED THAT TOWERS DOESN'T HAVE THE ASSETS TO BACK A TOTAL OF ABOUT 400 MILLION IN SECURITIES THE SEC ASKED A FEDERAL JUDGE TO APPOINT A SPECIAL MASTER TO OVERSEE TOWERS WHICH THE AGENCY CONTENDS IS VIRTUALLY INSOLVENT THE AGENCY IN ITS COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN ALLEGED THAT TOWERS HAS OVERSTATED ITS ASSETS BY MORE THAN DOUBLE THE TRUE AMOUNT FEDERAL JUDGE WHITMAN KNAPP DECLINED AT A HEARING TO APPOINT A SPECIAL MASTER BUT SCHEDULED ANOTHER HEARING FOR FEB 24 THE JUDGE ALSO PUT OFF RULING ON WHETHER TO FREEZE MR HOFFENBERG'S AND TOWERS'S ASSETS A MOVE THAT PROBABLY WOULD SCUTTLE COMPLETION OF ANY DEAL TO PURCHASE THE POST MR HOFFENBERG DECLINED TO COMMENT ON THE SEC'S ALLEGATIONS I WANT YOU TO KNOW EVERYTHING BUT YOU GOT ME ON A TOUGH DAY HE SAID IRA LEE SORKIN MR HOFFENBERG'S LAWYER SAID HE WAS REVIEWING THE DOCUMENTS FILED BY THE SEC MR SORKIN SAID TOWERS HAS NEVER DEFAULTED ON ANY OF ITS NOTES AND THAT ALL INTEREST AND PRINCIPAL HAS BEEN PAID TO INVESTORS THE SEC ACTION ALSO RAISES QUESTIONS ABOUT TOWERS'S GROWING HOSPITALBILL COLLECTION BUSINESS IN WHICH IT REPACKAGES UNPAID HOSPITAL BILLS AND SELLS THEM AS NOTES TO INVESTORS IN ADDITION TO THE 215 MILLION IN NOTES THE SEC SAID IN COURT PAPERS THAT IT'S CONCERNED THAT MR HOFFENBERG'S COMPANY COULD DEFAULT ON 200 MILLION IN BONDS BACKED BY HEALTHCARE RECEIVABLES THE SEC SAID TOWERS HAS MISUSED MONEY IT RECEIVED FROM THOSE BONDS SUCH AS FUNNELING 16 MILLION OF THE MONEY TO PAY COMPANY EXPENSES IN VIOLATION OF THE BONDS' COVENANTS THE SEC SAID TOWERS PAID MORE THAN 6 MILLION IN COMMISSIONS TO AT LEAST 60 BROKERDEALERS IN AT LEAST 16 STATES WHO SOLD TOWERS NOTES THE SEC SAID SOME OF THE BROKERS FALSIFIED THE INVESTOR QUESTIONNAIRES TO INFLATE INVESTORS' ASSETS EFFECTIVELY ALLOWING THEM TO QUALIFY AS SOPHISTICATED INVESTORS ELIGIBLE TO BUY UNREGISTERED SECURITIES IN ITS COMPLAINT THE SEC SAID THAT MANY OF THE INVESTORS TO WHOM THE SECURITIES WERE SOLD ARE WIDOWED RETIRED OR DISABLEDINVESTORS WHOM THE REGISTRATION PROCESS IS INTENDED TO PROTECT THE SEC SAID 26 CUSTOMERS OF GARY BOHLING A BROKER WITH ANDOVER SECURITIES INC CLINTON NY DECLARED ON THE QUESTIONNAIRES THAT THEY HAD ASSETS OF MORE THAN 1 MILLION EVEN THOUGH THEY DIDN'T HAVE THAT MUCH MONEY IN EACH CASE THE SEC SAID THE INVESTORS USED AN ESTIMATE THAT WAS IMPROPERLY SUPPLIED BY MR BOHLING OF THE PRESENT VALUE OF THEIR FUTURE SOCIAL SECURITY AND PENSION BENEFITS FOR EXAMPLE THE SEC SAID DOROTHY ADAMS A 68YEAROLD WIDOW IN SPRAKERS NY INVESTED 65000 IN TOWERS NOTES THROUGH MR BOHLING IN 1991 DESPITE HAVING ASSETS OF LESS THAN 400000 BUT HER QUESTIONNAIRE SHOWED A NET WORTH IN APRIL 1991 OF 1083000 BY LISTING 265000 PENSION 220000 FED RETIREMENT AND 245000 STATE TIACREF AN APPARENT REFERENCE TO A BIG COLLEGE RETIREMENT FUND IN A TELEPHONE INTERVIEW MS ADAMS SAID SHE HAD NO REASON RIGHT NOW TO BELIEVE ANYTHING IS AMISS WITH THE INVESTMENT DESPITE THE SEC'S ACTIONS SHE REFERRED FURTHER QUESTIONS TO MR BOHLING WHO DIDN'T RESPOND TO MESSAGES LEFT ON HIS ANSWERING MACHINE THE SEC SAID CLIENTS OF KEVIN KOWALSKI OF REPUBLIC SECURITIES INC IN CHICAGO BOUGHT TOWERS NOTES EVEN THOUGH THEY HADN'T FILLED OUT THE ASSETS SECTION OF THE QUESTIONNAIRES IN AN INTERVIEW MR KOWALSKI SAID THE CLIENTS STATED THEY WERE ELIGIBLE ADDING THAT HE WAS UNAWARE WHETHER THE SEC HAD FOUND DIFFERENTLY HE SAID HE HAD ONLY FIVE CLIENTS WHO INVESTED IN THE NOTES ADDING I'M ONLY A SMALL PERSON HE REFERRED FURTHER QUESTIONS TO HIS LAWYER MR SORKIN MR HOFFENBERG'S LAWYER SAID TOWERS DID EVERYTHING REASONABLE TO MAKE SURE THAT THE INVESTORS WERE QUALIFIED ALSO NAMED AS DEFENDANTS IN THE SEC SUIT WERE MITCHELL BRATER TOWERS' VICE CHAIRMAN AND ARTHUR J FERRO TOWERS' CHIEF ACCOUNTANT NEITHER MR BRATER NOR MR FERRO COULD BE REACHED FOR COMMENT IN COURT DOCUMENTS THE SEC ALSO RAISED QUESTIONS ABOUT THE SOLVENCY OF TOWERS FOR THE YEAR ENDED JUNE 30 1991 TOWERS SAID IT HAD LIABILITIES OF 4935 MILLION AND ASSETS OF 513 MILLION THE SEC SAID IN ITS COMPLAINT THAT THE COMPANY ACTUALLY HAD ASSETS OF 250 MILLION TOWERS REPORTED NET INCOME OF 43 MILLION FOR 1991 THE SEC CONTENDS THE COMPANY HAD A LOSS OF 65 MILLION FOR THE YEAR THE SEC SAID THAT ONE WAY TOWERS OVERSTATED ITS PROFIT WAS BY TAKING BAD LOANS THAT IT PURCHASED AND ACCOUNTING FOR THEM AS ASSETS VALUED AT FAR ABOVE THE TRUE AMOUNT FOR EXAMPLE IN 1990 TOWERS PAID THE FEDERAL DEPOSIT INSURANCE CORP 500000 FOR 50 MILLION OF UNCOLLECTED LOANS TOWERS VALUED THE LOANS ON ITS BOOKS AT 24 MILLION THE SEC HOWEVER SAID TOWERS HAS COLLECTED PRACTICALLY NOTHING ON THE LOANS IN ITS 1992 ANNUAL REPORT TOWERS SAID IT HAD ASSETS OF 684 MILLION THE SEC SAID IT HASN'T ANALYZED THE 1992 STATEMENT YET BUT THAT IT BELIEVES MR HOFFENBERG'S COMPANY HAS CONTINUED TO OVERSTATE ITS ASSETS MOST OF TOWERS STOCK IS HELD BY MR HOFFENBERG THE SEC SAID BUT SOME OF IT STILL IS TRADED IN THE OVERTHECOUNTER MARKET OVER THE WEEKEND MR HOFFENBERG SIGNED AN AGREEMENT TO BUY CONTROL OF THE NEW YORK POST FROM REALESTATE DEVELOPER PETER S KALIKOW THAT ARRANGEMENT STILL MUST WIN APPROVAL BY THE BANKRUPTCY COURT IN NEW YORK WHICH IS PRESIDING OVER MR KALIKOW'S BANKRUPTCYLAW PROEEDINGS RICHARD WALKER THE REGIONAL DIRECTOR OF THE SEC SAID MR HOFFENBERG'S NEGOTIATIONS TO BUY THE POST HADN'T ANY CONNECTION WITH THE TIMING OF THE SEC'S SUIT MR WALKER SAID THE AGENCY EXPEDITED ITS CONSIDERATION OF THE TOWERS CASE BECAUSE AN OFFICER OF SHAWMUT BANK CONNECTICUT TRUSTEE FOR THE HOSPITALBILL BONDS TESTIFIED LAST WEEK THAT THE BANK WAS CONCERNED THAT TOWERS COULDN'T MEET ITS OBLIGATIONS THE BANK IS A UNIT OF SHAWMUT NATIONAL CORP HARTFORD CONN 9302090065 930209 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS JANUARY 27 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9302090064 930209 HEADING FOR HANOI US FIRMS GEAR UP FOR VIETNAM BUSINESS ONCE TRADE BAN ENDS OFF LIMITS FOR TWO DECADES YESTERDAY'S ENEMY SEEKS COMMERCE FOR TOMORROW A MARKET OF 70 MILLION PEOPLE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL HANOI VIETNAM CHRYSLER CORP EXECUTIVES AND THEIR VIETNAMESE HOSTS WERE ENJOYING A SUMPTUOUS LUNCH OF SHRIMP CRABS AND CHAMPAGNE WHEN WORD CAME THAT THE US HAD LOOSENED ITS ECONOMIC EMBARGO OF VIETNAM JAMES ROCKWELL A US CONSULTANT TO THE AUTO MAKER ROSE TAPPED HIS GLASS AND READ ALOUD THE FAX OF THE WHITE HOUSE PRESS RELEASE THERE WERE TOASTS AND CHEERS BUT AS CHRYSLER WAS BUILDING TIES MITSUBISHI MOTORS CORP WAS TRYING TO TIE UP THE LOCAL AUTO MARKET THE JAPANESE COMPANY PERSUADED HANOI TO LET IT DRAFT A DETAILED MASTER PLAN FOR CREATING AN AUTOMOTIVE INDUSTRY HERE AND CHRYSLER FEARS THE PLAN WILL BE WRITTEN TO ENSURE MITSUBISHI'S MARKET DOMINANCE SO MR ROCKWELL MADE A LASTMINUTE APPEAL AND WON THE RIGHT FOR CHRYSLER TO COMMENT ON THE PLAN BEFORE IT'S PUT INTO EFFECT BUT CHRYSLER STILL HAS A LONG WAY TO GO TO OVERTAKE MITSUBISHI AMID SIGNS THAT THE 17YEAROLD AMERICAN EMBARGO MIGHT SOON END AN INTERNATIONAL BUSINESS SCRAMBLE IS UNDER WAY IN THIS BUSTLING ASIAN ECONOMY BHP PETROLEUM OF AUSTRALIA AND MALAYSIA'S PETRONAS CARIGALI RECENTLY CARVED OUT A LARGE CHUNK OF THE DAI HUNG OFFSHORE OIL FIELD HO CHI MINH CITY IS CLUTTERED WITH BILLBOARDS FOR SANYO TOSHIBA AND PANASONIC ELECTRONIC PRODUCTS AND HERE IN THE CAPITAL THREESTORY TOWNHOUSES ARE SPROUTING EVERYWHERE AND RENTING TO FOREIGN FIRMS FOR 3000 A MONTH A PRINCELY SUM IN A NATION WITH A YEARLY PER CAPITA INCOME OF ABOUT 300 NOW AMERICA IS MOVING BEYOND THE BITTERNESS OF ITS DEFEAT IN VIETNAM AS A HOST OF US COMPANIES SEEK TO ESTABLISH BEACHHEADS THERE THE HANOI CHAMBER OF COMMERCE SAYS THAT 113 AMERICAN FIRMS CAME HERE LAST YEAR UP FROM 20 THE YEAR BEFORE THE LIST INCLUDES SUCH BLUECHIP NAMES AS BOEING KODAK DU PONT AND KELLOGG THIS WEEK A GROUP OF 26 COMPANIES INTERESTED IN POSSIBLE BUSINESS OPPORTUNITIES IN VIETNAM IS IN HANOI FOR A ROUND OF MEETINGS AND BRIEFINGS WITH GOVERNMENT OFFICIALS THE AMERICAN COMPANIES STILL HAVE ONE HAND TIED BEHIND THEIR BACKS THE BUSH ADMINISTRATION DECISION IN DECEMBER TO RELAX THE SANCTIONS BY PERMITTING US FIRMS TO OPEN OFFICES AND SIGN TENTATIVE CONTRACTS WAS SUPPOSED TO GIVE US COMPANIES A BOOST INADVERTENTLY THOUGH IT HAS ONLY MADE MATTERS WORSE MR BUSH'S ACTION SENT A WAKEUP CALL TO THE ASIAN AND EUROPEAN BUSINESSES HERE TIME TO ACCELERATE THEIR EFFORTS BEFORE THE AMERICANS COME IN FULL FORCE SOON AFTER MR BUSH'S ANNOUNCEMENT SOUTH KOREA'S SAMSUNG OPENED ITS FIRST SHOWROOM TO DISPLAY AIR CONDITIONERS REFRIGERATORS AND OTHER HOUSEHOLD APPLIANCES AND FRENCH PRESIDENT FRANCOIS MITTERRAND SCHEDULED A FEBRUARY VISIT TO PUSH FRENCH INVESTMENT THIS PLACE IS LIKE A LAND RUSH IN THE OLD WEST SAYS EUGENE MATHEWS A US CONSULTANT WHO LIVES IN HANOI VIETNAM IS THE PLOT OF LAND THE JAPANESE TAIWANESE AND FRENCH ALL HAVE THEIR WAGONS MOVING AND AMERICA IS JUST GETTING STARTED WITH THE US SANCTIONS RELAXED IT'S EXPECTED THAT PRESIDENT CLINTON WILL COMPLETE THE PROCESS BY FULLY LIFTING THE EMBARGO DURING HIS CONFIRMATION HEARING SECRETARY OF STATE WARREN CHRISTOPHER ACKNOWLEDGED THAT WE'RE MISSING A NUMBER OF OUTSTANDING COMMERCIAL OPPORTUNITIES IN VIETNAM HE SAID THAT WITH CONTINUING VIETNAMESE COOPERATION RESOLVING CASES OF SOLDIERS UNACCOUNTED FOR DURING THE WAR THE ADMINISTRATION COULD MOVE TOWARD ENDING THE EMBARGO THOUGH SOME ACTIVIST GROUPS WILL CONTINUE TO OPPOSE NORMALIZING RELATIONS ONE OF THOSE GROUPS IS THE LIVE POW LOBBY OF AMERICA ITS CHAIRMAN MICHAEL VAN ATTA SAYS THE US SHOULDN'T LIFT THE EMBARGO UNTIL VIETNAM ACCOUNTS FOR ABOUT 80 STILLUNEXPLAINED CASES OF MISSING SERVICEMEN AS WELL AS FOR REPORTS THAT CLAIM LIVING EXSERVICEMEN WERE SEEN THERE THE GROUP HAS PICKETED MOBIL CORP HEADQUARTERS BECAUSE OF REPORTS THAT THE OIL GIANT WAS PREPARING TO NEGOTIATE WITH VIETNAM THROUGH A FOREIGN SUBSIDIARY OVER OIL RIGHTS WHEN THE EMBARGO EVENTUALLY ENDS US COMPANIES WILL HAVE AN ADVANTAGE THAT MAY HELP THEM MAKE UP FOR LOST TIME THEIR PRODUCTS WON'T NEED AN INTRODUCTION THE AMERICANS LEFT MANY OF THEM BEHIND WHEN THE WAR ENDED IN 1975 ANCIENT YELLOW CATERPILLAR TRACTORS STILL LUMBER ACROSS CONSTRUCTION SITES AND RUSTING CARRIER AIR CONDITIONERS CONTINUE TO COOL OFFICES AND REFLECTING THEIR LOVE OF AMERICAN PRODUCTS MOST VIETNAMESE BRUSH THEIR TEETH WITH VOLGATE A LOCAL BRAND THAT LOOKS SUSPICIOUSLY LIKE THE COLGATE THAT ONCE WAS POPULAR HERE WHEN AN INTERNATIONAL BUSINESS MACHINES CORP EXECUTIVE CAME HERE A FEW YEARS AGO PHAM KHAC CHI GENERAL DIRECTOR OF THE GOVERNMENT'S FOREIGN INVESTMENT SERVICE CO TOOK HIM TO IBM'S OLD FACILITY TO SHOW HIM THAT THE COMPUTERS WERE STILL RUNNING BIG BLUE MAY BE TARNISHED AT HOME BUT IT STILL HAS LUSTER HERE MR PHAM ARRANGED A REUNION WITH FORMER IBM EMPLOYEES WHO BROUGHT ALONG 20YEAROLD PHOTOS TAKEN AT COMPANY BANQUETS COCACOLA CO IS SEEKING A JOINTVENTURE PARTNER WHO ONCE THE EMBARGO'S LIFTED WILL HELP SATISFY THE THIRST OF 70 MILLION VIETNAMESE MARK OHLSON COKE'S REGIONAL MANAGER FIGURES THE COMPANY HAS A HEAD START THE REASON PEOPLE WANT COKE IS WE HAD SUCH A BIG BUSINESS HERE IN 1975 HE SAYS ADDING THAT AS MANY AS 25 MILLION CASES POURED INTO SOUTH VIETNAM THAT YEAR INDEED OF THE MANY AMERICAN PRODUCTS BEING SOLD HERE DESPITE THE EMBARGO NOTHING GOES BETTER THAN COKE ENORMOUS QUANTITIES OF IT ARE SMUGGLED IN FROM SINGAPORE OR HONG KONG TRAVELING THROUGH SOUTH CHINA AND ACROSS THE RED RIVER INTO NORTHERN VIETNAM OR ACROSS CAMBODIA'S POROUS BORDER A BOOTLEGGED CAN FETCHES ABOUT 60 CENTS MORE THAN TRIPLE THE PRICE IN THAILAND PEPSICO INC PEOPLE HAVE BEEN HERE TOO ACCORDING TO SP COLA A BIG BOTTLER IN HO CHI MINH CITY THAT IS CONSIDERED THE BEST JOINT VENTURE PARTNER ITS 37YEAROLD MANAGER PHAM PHU NGOC TRAI SAYS HE WAS CALLED BY A PEPSI EXECUTIVE AFTER THE EMBARGO WAS RELAXED THE VIETNAMESE ENTREPRENEUR IS DEFINITELY INTERESTED HIS COMPANY IS BUILDING A NEW PLANT WITH A PRODUCTION CAPACITY OF 600 BOTTLES PER MINUTE AND SP COLA'S RED WHITE AND BLUE CAN LOOKS AS IF IT COULD BE PEPSI'S FIRST COUSIN US BUSINESS EXECUTIVES SAY THAT THE COMPANIES THAT GET IN EARLY WILL MAKE THE MOST MONEY A MARRIOTT CORP EXECUTIVE HERE NOTES THAT THE COMPANY'S EARLY INVESTMENT IN A BIG HOTEL IN WARSAW PAID OFF SWIFTLY AND HE HOPES FOR A REPLAY IN VIETNAM HE SAYS HE PLANS TO RETURN WITH OTHER COMPANY OFFICIALS IN A FEW WEEKS STILL AMERICAN COMPANIES ARE FRUSTRATED BY THE RESTRICTIONS OF THE EMBARGO A BOEING CO EXECUTIVE SAYS THAT DURING HIS RECENT MEETINGS HERE VIETNAMESE OFFICIALS TOLD HIM THEY WANT TO BUILD AN INTERNATIONAL AIRLINE TO SUPPORT TOURISM BUT EVEN IF A DEAL COULD BE WORKED OUT BOEING COULDN'T BUILD PLANES FOR VIETNAM WITHOUT A FORMAL CONTRACT WHICH RIGHT NOW WOULD BE A VIOLATION OF THE EMBARGO NEVERTHELESS US COMPANIES ARE CAUTIOUS ABOUT DEMANDING THE EMBARGO'S REMOVAL THEY REMEMBER THAT AMERICAN CORPORATIONS WERE PICKETED FOR DOING BUSINESS IN SOUTH AFRICA AND ANGOLA AND DON'T WANT TO PROVOKE ACTIVISTS WHO WANT TO KEEP THE EMBARGO NOBODY WANTS TO PUT THE COWBELLS ON AND LEAD THE WAY SAYS COCACOLA'S MR OHLSON AS A RESULT EVEN THOSE ACTIVELY EXPLORING BUSINESS OPPORTUNITIES IN VIETNAM KEEP A LOW PROFILE AND SPEAK ABOUT THE POSSIBILITIES ONLY IN THE MOST CIRCUMSPECT TERMS POTENTIALLY THE MARKET MAY HAVE SOME INTEREST TO CHRYSLER SAYS TONY CERVONE CHRYSLER'S MANAGER OF INTERNATIONAL PUBLIC AFFAIRS BUT ALL WE'RE DOING IS TESTING THE WATERS AT THIS STAGE HANOI AWARE THAT GROUPS IN THE US OPPOSE LIFTING THE EMBARGO HAS RECENTLY BEEN MORE FORTHCOMING WITH INFORMATION ON US SOLDIERS WHO WERE UNACCOUNTED FOR WHEN THE WAR ENDED A SPECIAL SENATE COMMITTEE THAT RECENTLY COMPLETED AN EXHAUSTIVE STUDY OF THE THORNY ISSUE OF MISSING VIETNAMERA SERVICEMEN CITED THE VERY SUBSTANTIAL STRIDES TOWARD FULL COOPERATION MADE BY HANOI COMPANIES THAT DECIDE TO DO BUSINESS IN VIETNAM WILL FIND A POTENTIALLY RICH MARKET VIETNAM IS NO LONGER THE IMPOVERISHED WARRAVAGED COUNTRY IT WAS WHEN MOST AMERICANS LAST FOCUSED ON IT THE NATION IS DEVELOPING ITS ABUNDANT DEPOSITS OF OIL COAL AND OTHER MINERALS IS STRATEGICALLY LOCATED IN THE HEART OF THE WORLD'S FASTESTGROWING REGION AND HAS A HIGHLY EDUCATED HARDWORKING POPULATION IN 1986 WITH ITS SOCIALIST ECONOMY IN RUINS AND ITS PATRON THE SOVIET UNION IN DISARRAY VIETNAM'S PRAGMATIC LEADERSHIP EMBARKED ON A MAJOR REFORM EFFORT KNOWN AS DOI MOI OR ECONOMIC RENOVATION HANOI SCRAPPED ITS HIGHLY CENTRALIZED AGRICULTURE POLICY AND ENCOURAGED THE ENTREPRENEURIAL INSTINCTS OF ITS PEOPLE NOW IT IS POISED FOR GROWTH DESPITE THE COLLAPSE OF ITS MAJOR SUPPLIER AND CUSTOMER IN MOSCOW VIETNAM IN THE PAST TWO YEARS HAS ACCUMULATED HARDCURRENCY RESERVES OF 600 MILLION ACCORDING TO PRIVATE ESTIMATES IT IS RUNNING A TRADE SURPLUS AND HAS BECOME THE WORLD'S THIRDLARGEST RICE EXPORTER AFTER THAILAND AND THE US ALONG THE CAPITAL'S BROAD BOULEVARDS MYRIAD SMALL STOREFRONTS ARE FILLED WITH CARTONS OF COLOR TELEVISION SETS AND SHOWCASES STUFFED WITH SEIKO WATCHES A NEW 550ROOM HOTEL IS UNDER CONSTRUCTION IN HO CHI MINH CITY THE FORMER SAIGON I THINK VIETNAM WILL IN FACT JOIN THE OTHER ASIAN TIGERS WITHIN 20 YEARS SAYS GRAHAM ALLIBAND AUSTRALIA'S FORMER AMBASSADOR TO VIETNAM REFERRING TO PROSPEROUS SINGAPORE TAIWAN HONG KONG SOUTH KOREA AND THAILAND HE HAS RETURNED TO HANOI AS A PRIVATE BUSINESS CONSULTANT THE FIRST AMERICANS TO TAP INTO VIETNAM'S RECOVERY WERE CONSULTANTS WHO BEGAN ARRIVING ABOUT TWO YEARS AGO TO BECOME THE PILOT FISH FOR BIG CORPORATIONS ONCE THE EMBARGO ENDED MR MATHEWS A 34YEAROLD HARVARD GRADUATE MOVED TO HANOI IN 1990 TO STAY WITHIN THE 200ADAY SPENDING LIMITS THEN SET BY THE US EMBARGO HE MOVED INTO THE EDUCATION MINISTRY'S GUEST HOUSE HIS DAYS OFTEN BEGIN WITH A SIXMILE JOG AROUND A PARK IN HANOI FOLLOWED BY THREE HOURS OF LANGUAGE LESSONS SOON AFTER HIS ARRIVAL HE ALSO BEGAN COURTING US AND JAPANESE CLIENTS NOW THE HARD PART FOR ME IS OVER HE SAYS IN A RECENT INTERVIEW IN HANOI MR MATHEWS NOW SPEAKS VIETNAMESE AND IS WELL KNOWN TO GOVERNMENT OFFICIALS HERE WITH THE LOOSENING OF THE EMBARGO HIS FIRM CALLED ASHTA IS SET TO MOVE SOON INTO A SPACIOUS TOWNHOUSE THAT WILL SERVE AS BOTH RESIDENCE AND OFFICE HE WON'T NAME HIS CLIENTS BUT SAYS AMERICAN FIRMS ARE SEEKING HIM OUT DURING A VISIT TO THE US AT CHRISTMASTIME MR MATHEWS SAYS HE MET WITH SEVERAL MONEY MANAGERS INTERESTED IN INVESTING IN VIETNAM MR ROCKWELL A LANKY 31YEAROLD FROM IDAHO ARRIVED ABOUT 18 MONTHS AGO HIS COMPANY VATICO RECENTLY RECEIVED THE FIRST LICENSE FROM THE TREASURY DEPARTMENT TO CONDUCT BUSINESS HERE HE TAKES OPPORTUNITIES WHEREVER HE CAN FIND THEM RECENTLY HE NOTICED THAT ALL THE FOREIGNERS WERE DRINKING BOTTLED WATER FROM SINGAPORE MR ROCKWELL CONTACTED THE STATE ENTERPRISE THAT MAKES PLASTIC PRODUCTS AND DREW UP PLANS FOR A JOINT VENTURE THEN HE TRACKED DOWN INTERNATIONAL WATER RESOURCE DEVELOPMENT CORP A MASSACHUSETTS FIRM WHICH AS A RESULT RECENTLY MADE A PROPOSAL TO VIETNAM TO OPERATE HERE ONCE THE EMBARGO IS LIFTED THE MAIN FUNCTION OF CONSULTANTS LIKE MR MATHEWS AND MR ROCKWELL IS TO GUIDE THEIR CLIENTS THROUGH VIETNAM'S MINDNUMBING BUREAUCRACY WHEN CHRYSLER FIRST CAME HERE LATE LAST YEAR IT MADE ITS INITIAL CONTACTS WITH THE MINISTRY OF TRANSPORTATION ONLY TO LEARN THAT IT'S THE MINISTRY OF HEAVY INDUSTRY THAT HOLDS JURISDICTION OVER CARS AND EVEN THOUGH HO CHI MINH CITY IN THE SOUTH HAS TRADITIONALLY BEEN THE HUB OF COMMERCIAL ACTIVITY US COMPANIES ALSO MUST COME REGULARLY TO HANOI WHERE POLITICAL POWER RESIDES USUALLY LICENSE APPLICATIONS AND OTHER FORMS MUST BE FILED WITH AGENCIES IN BOTH CITIES AND CAN TAKE MONTHS TO BE APPROVED MOREOVER SAYS PHILIPPE PETITGAS GENERAL MANAGER OF BANQUE FRANCAISE DU COMMERCE EXTERIER IN HO CHI MINH CITY THERE IS NO LEGAL CODE TO GO WITH THE FOREIGNINVESTMENT LAWS IF YOU HAVE A PROBLEM YOU HAVE TO GO TO THE PEOPLES' COMMITTEES OR LEGAL ARBITRATION HE ALSO SAYS THAT BANKS CAN'T MAKE MORTGAGE LOANS BECAUSE ALL PROPERTY IS STILL OWNED BY THE STATE VIETNAM HUNGRY FOR US DOLLARS IS TRYING TO RESOLVE THESE AND OTHER PROBLEMS FOR INSTANCE HANOI HAS MADE SEVERAL REVISIONS IN FOREIGN INVESTMENT LAWS IT PASSED IN 1987 IN DECEMBER IT EXTENDED THE LIFE OF PROPERTY LEASES GRANTED TO FOREIGNERS TO 50 TO 70 YEARS FROM 20 TO 30 YEARS UNDER ANOTHER CHANGE VIETNAMESE INDIVIDUALS MAY FOR THE FIRST TIME HAVE DIRECT BUSINESS CONTACTS WITH FOREIGNERS WITHOUT GOING THROUGH GOVERNMENT MINISTRIES ALTHOUGH AMERICAN BOMBS LAID WASTE TO MUCH OF THIS COUNTRY TWO DECADES AGO THE PRACTICAL VIETNAMESE HAVE TAKEN A PRAGMATIC LONGER VIEW THEY WERE RULED BY CHINA FOR 1000 YEARS WERE COLONIZED BY FRANCE FOR 100 YEARS AND ENDURED A BRUTAL OCCUPATION BY JAPAN DURING WORLD WAR II NOW THEY ARE WELCOMING BACK THE AMERICANS ONE MIDDLEAGED VIETNAMESE MAN RECALLS LIVING IN CAVES ALONG WITH HUNDREDS OF OTHERS DURING THE INTENSE AMERICAN BOMBING OF HANOI ON CHRISTMAS WEEK 1972 NOW HE SAYS THE VIETNAMESE HAVE PUT THIS BEHIND US HE IS PUZZLED THAT IT'S TAKEN THE US SO LONG TO DO THE SAME 9302090063 930209 CANADIAN AIDE CALLS US FREE TRADERS' PROMPTING A DENIAL SEMANTICAL DISCORD TAKES PLACE FOLLOWING ALLDAY MEETING TO DEAL WITH TRADE MATTERS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHO ARE YOU CALLING A FREE TRADER AFTER MEETING ALL DAY ON TRADE MATTERS CANADIAN TRADE MINISTER MICHAEL WILSON SAID US TRADE REPRESENTATIVE MICKEY KANTOR AND COMMERCE SECRETARY RON BROWN BOTH ASSURED HIM THEY WERE YOUKNOWWHATS ONE OF THE POINTS THAT THEY BOTH WENT OUT OF THEIR WAY TO MAKE WAS THAT THEY ARE FREE TRADERS MR WILSON NOTED APPROVINGLY SAYS WHO RESPONDED A SENIOR US TRADE OFFICIAL WHO REQUESTED ANONYMITY I DON'T EVEN REMEMBER THE TERM COMING UP HE SAID ALTHOUGH HE DID ALLOW THAT MR KANTOR CAME OUT FOR OPEN MARKETS AND EXPANDING TRADE UNDER THE BUSH ADMINISTRATION FREE TRADE WAS IN NOW IT'S OUT GIVING RISE TO CONCERN AMONG YOU GUESSED IT FREE TRADERS THAT THE NEW ADMINISTRATION WILL HELP INDUSTRIES AND UNIONS SEEKING PROTECTION FROM FOREIGN COMPETITION THERE'S A LOT OF BAD VIBES GOING AROUND SAYS JAGDISH BHAGWATI A COLUMBIA UNIVERSITY FREEMARKET ECONOMIST ALL THIS PUTS CLINTONITES IN A SEMANTIC AND POLICY BIND THEY DON'T WANT TO ADMIT TO BEING FREETRADERS FOR FEAR OF OFFENDING SUPPORTERS WHO EQUATE THE TERM WITH REPUBLICAN DISDAIN FOR THE LITTLE GUY BUT THEY NEED TO CALM TRADING PARTNERS AND EXPORT INDUSTRIES THAT WORRY ABOUT DEMOCRATICPARTY PROTECTIONISM SO THEY USE TERMS LIKE OPEN FOR TRADE THAT IS FREE AND TRY THEIR BEST TO SIGNAL THAT THEY DON'T WANT TO MESS UP THE WORLD TRADING SYSTEM FOR INSTANCE MR WILSON SAID AND THE US TRADE OFFICIAL CONFIRMED THAT THE ADMINISTRATION WOULD SEEK AN EXTENSION OF CONGRESSIONAL AUTHORITY TO NEGOTIATE A WORLD TRADE PACT THAT AUTHORITY IS SET TO EXPIRE MARCH 2 THE US TRADE OFFICIALS ALSO SAID THEY HOPED THAT SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT WON'T HOLD UP THE PACT WHICH IS SCHEDULED TO TAKE EFFECT JAN 1 1994 THE CLINTON TEAM HASN'T YET DEVISED A TRADE STRATEGY FREE OR OTHERWISE TO PULL THIS OFF THOUGH PRESIDENT CLINTON HASN'T FILLED OUT HIS TRADE TEAM YET BUT FREE TRADERS NEED NOT APPLY 9302090062 930209 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE SUPPORT GROWS FOR TAXING HEALTH BENEFITS BUT DETAILS REMAIN IN DISPUTE FULLY 56 OF AMERICANS NOW FAVOR TAXING INDIVIDUALS FOR SOME PORTION OF THEIR HEALTH BENEFITS COMPARED WITH JUST 9 IN 1989 ACCORDING TO A GALLUP POLL FOR THE EMPLOYEE BENEFIT RESEARCH INSTITUTE SOME 34 WOULD ONLY TAX BENEFITS BEYOND A BASIC PACKAGE WHILE 22 WOULD MAKE ALL HEALTH BENEFITS TAXABLE MOREOVER 40 SUPPORT ELIMINATING EMPLOYERS' DEDUCTIONS FOR HEALTH BENEFITS COMPLETELY OR AT LEAST PARTIALLY THOSE POLLED SPLIT ALMOST EVENLY ON WHETHER THEY WOULD BE WILLING TO PAY EXTRA TAXES IN EXCHANGE FOR A GUARANTEE OF HEALTH COVERAGE REGARDLESS OF THEIR WORK STATUS AS THE HEALTHCARE CRISIS HAS WORSENED MORE AMERICANS HAVE BECOME REASONABLY DISPOSED TO SOME SORT OF TAX ON HEALTH BENEFITS SAYS EBRI PRESIDENT DALLAS SALISBURY HOWEVER THEY STILL ARE DIVIDED ON THE WHOLE ISSUE IF ALL TAXPAYERS PAID 400 MORE ANNUALLY THERE WOULD BE ENOUGH REVENUE TO PROVIDE COVERAGE FOR ALL THE UNINSURED LABOR'S GLASS CEILING DESPITE A GROWING ROLE WOMEN LACK CLOUT IN UNIONS THE NUMBER OF FEMALE UNION MEMBERS IN THE US DOUBLED TO 62 MILLION FROM 31 MILLION BETWEEN 1960 AND 1990 ACCORDING TO THE UNITED NATIONS' INTERNATIONAL LABOR ORGANIZATION DURING THE SAME PERIOD THE OVERALL UNIONIZED WORK FORCE CLIMBED A SCANT 12 MILLION TO 167 MILLION WOMEN WHO ACCOUNT FOR TWO OUT OF EVERY THREE NEW UNION MEMBERS NOW COMPRISE 37 OF THE UNIONIZED WORK FORCE BUT LAST YEAR WOMEN HELD THE TOP JOBS AT ONLY TWO OF THE 95 AFLCIO UNIONS EVEN UNIONS WHERE WOMEN HAVE MADE GAINS SUCH AS AFSCME THE STATE AND LOCALGOVERNMENT EMPLOYEES UNION HAVEN'T ACHIEVED EQUALITY AFSCME SAYS 50 OF ITS LOCALS HAVE WOMEN PRESIDENTS FOR INSTANCE BUT THE ILO SAYS REGIONAL AND COUNCIL DIRECTORS MOSTLY MEN HAVE MORE POWER EMPLOYEE ASSISTANCE PLANS HEED THE BOTTOM LINE MORE CAREFULLY CORPORATE CLIENTS DEMAND MORE EMPHASIS ON CONTROLLING COSTS SAYS DAVID LEVINE A VICE PRESIDENT AT HUMAN AFFAIRS INTERNATIONAL IN SALT LAKE CITY MENTALHEALTH SERVICES ARE SCRUTINIZED ESPECIALLY CLOSELY EMPLOYERS ARE PAYING FOR FUNCTIONALITY IN WORKERS NOT TO HELP THEM FIND THEMSELVES EXPLAINS ROBIN WEINER A FOSTER HIGGINS CONSULTANT IN LOS ANGELES PERSONAL PERFORMANCE CONSULTANTS A ST LOUIS MANAGEDCARE COMPANY SAYS IT USED SAVINGS FROM ITS MERGER WITH PHARMACEUTICALS COMPANY MEDCO CONTAINMENT SERVICES TO EXPAND INTO CHILDCARE AND ELDERCARE REFERRAL SERVICES AND PETER CUMMINGS MANAGER OF SAN DIEGO COUNTY'S PLAN SEES PROGRAMS PAYING MORE ATTENTION TO ISSUES THAT DIRECTLY AFFECT COSTS SUCH AS TEAMBUILDING AND RESOLVING WORKPLACE CONFLICT RATHER THAN CATERING TO THE WOUNDED WELL HARD TIMES SPARE THE PROGRAM AT CINCINNATI GAS & ELECTRIC WHICH HAS CUT 10 OF ITS WORKERS SINCE LAST SUMMER WE'RE TRYING TO MAINTAIN PROGRAMS THAT HELP PEOPLE DEAL WITH THE STRESSES OF CHANGE A SPOKESMAN SAYS HIGHTECH STEELWORKERS USX SAYS IT WILL EMPLOY JUST 90 WORKERS TO PROCESS 600000 TONS OF CORROSIONRESISTANT STEEL ANNUALLY AT ITS NEW LEIPSIC OHIO MILL THAT'S ABOUT ONETHIRD THE NUMBER NEEDED IN LESSADVANCED PLANTS THE MILL A JOINT VENTURE WITH JAPAN'S KOBE STEEL LTD WILL BE USX'S FIRST MAJOR NONUNION VENTURE STATE POLICE RECRUITS IN NEW JERSEY AND NORTH DAKOTA NOW MUST HAVE BACHELOR'S DEGREES OR TWO YEARS OF COLLEGE PLUS PRIOR EXPERIENCE OFFICIALS SAY POPULATION DIVERSITY AND NEW TECHNOLOGIES SUCH AS DNA TESTING MAKE SCHOOLING VITAL NATIONWIDE 23 OF POLICE OFFICERS NOW HOLD FOURYEAR DEGREES A NEW PROFESSION THE WAITERS ASSOCIATION IS FORMED TO ELEVATE THE STANDARDS AND STATUS OF THIS COUNTRY'S 18 MILLION AMBASSADORS OF HOSPITALITY THE GROUP PLANS TO PROVIDE GROUP INSURANCE JOB CONTACTS AND A NEWSLETTER OFFERING TIPS ON HOW TO IMPROVE SKILLS REVIEWS OF SERVICERELATED BOOKS AND PROFILES OF AMERICA'S WAITERS PRINCIPAL PROBLEMS SOME SCHOOLS COULD FACE A SHORTAGE OF ADMINISTRATORS IN SOME AREAS RISING SALARIES GIVE TEACHERS LESS INCENTIVE TO MOVE INTO PRINCIPALS' JOBS IN MONTGOMERY COUNTY MD TEACHERS EARN UP TO 55614 COMPARED WITH 63635 FOR STARTING ASSISTANT PRINCIPALS BUT TEACHERS ONLY WORK 10 MONTHS IN GROSSE POINTE MICH WHERE TEACHER SALARIES HAVE CLIMBED 40 IN THE LAST SIX YEARS POSTINGS FOR HIGH SCHOOL PRINCIPAL JOBS DRAW HALF AS MANY APPLICANTS AS IN THE PAST LONG HOURS FREQUENT EVENING MEETINGS AND RISING COMMUNITY PRESSURES DRIVE SOME CANDIDATES AWAY SO DOES STRESS HIGH SCHOOL PRINCIPALS IN FAIRFAX COUNTY VA EARN UP TO 80000 BUT THEY MANAGE STAFFS AVERAGING 200 AND SCHOOL POPULATIONS RANGE UP TO 4000 THE COUNTY DELIBERATELY RAISED TEACHER SALARIES TO KEEP TALENT IN THE CLASSROOM BUT IT'S HAVING SECOND THOUGHTS BECAUSE BUDGET CUTS HAVE HURT RECRUITING EFFORTS THE ROLE OF THE PRINCIPAL HAS DIMINISHED ADDS ASSISTANT SCHOOL SUPERINTENDENT ERNEST LAVENDER IN FULTON COUNTY GA WHO WAS A PRINCIPAL 10 YEARS AGO THE POSITION IS NOT HELD IN SUCH HIGH ESTEEM THE CHECKOFF A GRAFFITI ARTIST CONVERTS A POLITICALLY CORRECT PERSONS WORKING SIGN OVER A MANHATTAN MANHOLE TO READ MANLY PERSONS WORKING MOVE OVER OPRAH LABOR SECRETARY ROBERT REICH HAS APPEARED ON EIGHT NATIONALLY BROADCAST TELEVISION TALK SHOWS IN THE LAST TWO WEEKS 9302090061 930209 INTERNATIONAL BRIEF KANSALLIS OSAKE PANKKI FINNISH BANK'S PRETAX LOSS MORE THAN DOUBLED FOR 1992 FINLAND'S BIGGEST BANK KANSALLIS OSAKE PANKKI REPORTED A 1992 PRETAX LOSS OF 366 BILLION MARKKAA 6391 MILLION MORE THAN DOUBLE THE YEAREARLIER LOSS OF 161 BILLION MARKKAA AND THE VIRTUAL CERTAINTY OF MORE RED INK THIS YEAR PROMISES TO HAVE KOP BACK IN LINE FOR STATE FINANCIAL BACKING KOP SAID LOANLOSS PROVISIONS MORE THAN TRIPLED LAST YEAR TO 427 BILLION MARKKAA FROM 134 BILLION MARKKAA THE EXACT FORM OF THE ESTIMATED ONE BILLION MARKKAA IN STATE CAPITAL KOP LIKELY WILL NEED REMAINS UNCERTAIN AND DESPITE POLITICAL BICKERING ABOUT THE COST OF BAILOUTS THERE IS NO DOUBT ABOUT THE GOVERNMENT'S UNCONDITIONAL PLEDGE TO MAINTAIN STABILITY OF THE NATION'S FINANCIAL SYSTEM 9302090059 930209 WHAT'S NEWS BUSINESS AND FINANCE CLINTON OFFICIALS ARE LEANING TOWARD PROPOSING AN INCREASE IN THE TOP CORPORATE INCOME TAX RATE TO 36 FROM 34 SUCH A STEP WOULD GENERATE ABOUT 6 BILLION A YEAR BUT WOULD BE PARTLY OFFSET BY PLANNED TAX MOVES FAVORABLE TO BUSINESS CLINTON IS LIKELY TO PROPOSE RAISING THE TOP INDIVIDUAL TAX RATE TO 36 FROM 31 BUT NOT TO THE HIGHER LEVEL SOME AIDES SUGGESTED THE PRESIDENT INTENDS TO ASK CONGRESS TO CONTINUE AN EXTENDEDBENEFITS PROGRAM FOR THE UNEMPLOYED BUT HE WANTS TO LINK THE PAYMENTS TO JOBTRAINING AND JOBSEARCH SERVICES GENERAL MOTORS ACCUSED NBC OF DEFAMATION SAYING THE NETWORK RIGGED A CRASH TEST OF GM PICKUPS ON ITS DATELINE NEWS PROGRAM LOEWS CORP IS TAKING A 567 MILLION FOURTHQUARTER CHARGE STEMMING FROM A 15 BILLION ADDITION TO ASBESTOS LOSSES AT ITS CNA INSURANCE UNIT LOEWS AND CNA'S STOCKS SLIPPED THE IRS WON'T DISALLOW MANY DEDUCTIONS FOR HOME OFFICE EXPENSES MADE ON PRE1992 TAX RETURNS DESPITE A RECENT SUPREME COURT RULING MAKING IT HARDER TO TAKE SUCH DEDUCTIONS THE SEC SUED PROSPECTIVE NEW YORK POST BUYER STEVEN HOFFENBERG SAYING HE FRAUDULENTLY SOLD MILLIONS OF DOLLARS IN SECURITIES ISSUED BY HIS DEBTCOLLECTION CONCERN THE SUIT COULD KEEP HIM FROM ACQUIRING THE NEWSPAPER THE STOCK MARKET RALLY STALLED WHILE BOND PRICES AND THE DOLLAR WEAKENED THE DOW JONES INDUSTRIALS WHICH LAST WEEK SURGED NEARLY 4 TO A RECORD FELL 460 POINTS TO 343754 THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/2 POINT ITT'S SHERATON HOTEL UNIT HIRED HILTON'S TOP CASINO EXECUTIVE TO BE PRESIDENT OF SHERATON CEMENTING ITS PLANS TO ENTER THE GAMBLING BUSINESS APPLE IS UPGRADING ITS MIDRANGE PERSONAL COMPUTERS BY BUILDING THEM WITH A POWERFUL MICROCHIP PREVIOUSLY USED ONLY IN APPLE'S HIGHEND MODELS THE MOVE IS A BID TO COMPETE BETTER WITH PCS THAT RUN ON INTEL CHIPS NEW YORK'S STATE PENSION FUND INTENDS TO WAGE A PROXY FIGHT AGAINST A&P'S DIRECTORS THE FUND'S FIRST TARGET IN AN EFFORT TO PRESSURE COMPANIES CONSIDERED TO BE PERFORMING POORLY SHORTAGES OF RESIDENTIAL LOTS THAT HAVE BEEN PREPARED FOR CONSTRUCTION ARE STARTING TO APPEAR AROUND THE COUNTRY IN A GROWING TREND THAT COULD HELP BOOST PRICES FOR NEW HOMES THE NASD ASKED THE SEC FOR PERMISSION TO TRADE WARRANTS BASED ON THE MOVEMENT OF NASDAQ STOCK INDEXES GENERAL MAGIC AGREED TO AN EXCLUSIVE DEAL WITH AT&T DESPITE A PLEDGE TO FOSTER AN OPEN STANDARD FOR WIRELESS DATA COMMUNICATION DEVICES PEOPLE CLOSE TO GENERAL MAGIC SAID SALOMON CREATED A UNIT TO TRADE IN THE MARKET FOR HYBRID CUSTOMIZED SECURITIES KNOWN AS DERIVATIVES SINCE ITS TREASURY SCANDAL THE FIRM HAS LARGELY BEEN SHUT OUT OF THE MARKET COORS BREWING NAMED FORMER FRITOLAY EXECUTIVE W LEO KIELY PRESIDENT OF THE ADOLPH COORS CO UNIT MAKING HIM THE FIRST PERSON FROM OUTSIDE THE COORS FAMILY TO HOLD THE POST LUMBER FUTURES PRICES CLIMBED BY THE MAXIMUM AMOUNT ALLOWED FOR THE 11TH CONSECUTIVE TRADING DAY BONDS LEHMAN BROTHERS TREASURY INDEX 485719 OFF 1236 COMMODITIES OIL 2008 A BARREL OFF 13 CENTS DOW JONES FUTURES INDEX 12285 UP 001 SPOT INDEX 12200 OFF 033 DOLLAR 12375 YEN OFF 068 16565 MARKS OFF 00025 9302090058 930209 INTERNATIONAL BRIEF WESTPAC BANKING CORP STAKES IN TWO RIVAL BANKS SOLD FOR OVER 1689 MILLION WESTPAC BANKING CORP SOLD ITS STAKES IN TWO RIVAL AUSTRALIAN BANKS IN TRANSACTIONS VALUED AT MORE THAN 250 MILLION AUSTRALIAN DOLLARS US1689 MILLION WESTPAC SAID IT SOLD A 61 STAKE IN AUSTRALIA & NEW ZEALAND BANKING GROUP LTD AND A 76 STAKE IN BANK OF MELBOURNE LTD THE PROFITS BOOKED ARE BELIEVED TO BE LESS THAN A5 MILLION BUT A SPOKESMAN SAID THE SALES LIFT CAPITAL ADEQUACY RATIOS ABOVE 10 FROM 97 ON SEPT 30 WESTPAC'S 59 HOLDING IN CHALLENGE BANK LTD OF WESTERN AUSTRALIA IS ALSO BELIEVED TO BE ON THE MARKET THE ANZ STAKE WAS ON WESTPAC'S BOOKS AT A2239 MILLION OR A288 A SHARE A WESTPAC SPOKESMAN DECLINED TO GIVE THE SALE PRICE BUT SAID IT WAS MORE THAN THE A288 VALUATION HE SAID THE SHARES WERE SOLD IN A PLACEMENT WIDELY SPREAD TO DOMESTIC AND INTERNATIONAL INVESTMENT INSTITUTIONS 9302090057 930209 BUSINESS BRIEF INTERNATIONAL FLAVORS & FRAGRANCES FOURTHQUARTER PROFIT FELL BY 27 REFLECTING CHARGES INTERNATIONAL FLAVORS & FRAGRANCES INC SAID FOURTHQUARTER NET INCOME FELL 27 REFLECTING THE IMPACT OF A ONETIME CHARGE AND NEW ACCOUNTING STANDARDS THE NEW YORK COMPANY SAID PROFIT FELL TO 22 MILLION OR 57 CENTS A SHARE FROM 304 MILLION OR 79 CENTS A SHARE A YEAR EARLIER EXCLUDING THE EXTRAORDINARY ITEMS PROFIT WAS UP 17 TO 354 MILLION SALES ROSE 13 TO 2544 MILLION THE FOURTHQUARTER RESULTS INCLUDED A 13 MILLION AFTERTAX CHARGE EQUAL TO 34 CENTS A SHARE FROM CONSOLIDATING EUROPEAN PRODUCTION OF AROMA CHEMICALS THE CHANGE SHOULD SAVE ABOUT 85 MILLION A YEAR BEFORE TAXES IN ADDITION THE COMPANY HAD A 20 MILLION AFTERTAX CHARGE FOR ADOPTION OF A NEW ACCOUNTING STANDARD FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS THE CHARGE AMOUNTED TO FOUR CENTS A SHARE IN THE FOURTH QUARTER AND 47 CENTS A SHARE FOR THE REST OF THE YEAR 9302090056 930209 BUSINESS BRIEF MARVEL ENTERTAINMENT GROUP INC FOURTHPERIOD NET GREW 93 AFTER PURCHASE OF FLEER CORP MARVEL ENTERTAINMENT GROUP INC NEW YORK REPORTED A 93 INCREASE IN FOURTHQUARTER PROFIT ATTRIBUTABLE IN LARGE PART TO THE RECENT ACQUISITION OF FLEER CORP A SPORTS CARDS CONCERN THE COMPANY KNOWN FOR ITS COMIC BOOKS POSTED QUARTERLY EARNINGS OF 104 MILLION OR 21 CENTS A SHARE COMPARED WITH 54 MILLION OR 11 CENTS A SHARE IN THE YEAREARLIER QUARTER PERSHARE RESULTS ARE ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT IN DECEMBER EXCLUDING RESULTS FROM FLEER PERSHARE EARNINGS GREW 45 REVENUE MORE THAN DOUBLED TO 904 MILLION FROM 349 MILLION THE COMPANY SAID THE QUARTER WAS HELPED BY FLEER BUT NOTED THAT ALL OPERATIONS CONTRIBUTED TO REVENUE GROWTH IN THE QUARTER REVENUE FROM MARVEL'S OTHER BUSINESSES PUBLISHING LICENSING AND ADVERTISING INCREASED 17 IN THE QUARTER FOR THE YEAR MARVEL'S NET DOUBLED TO 327 MILLION OR 66 CENTS A SHARE FROM 161 MILLION OR 33 CENTS A SHARE FOR 1991 REVENUE ROSE 94 TO 2238 MILLION 9302090055 930209 MARKETING BRIEF SAVOY PICTURES ENTERTAINMENT INC INVESTORS ARE TAKING FIRM PUBLIC IN A STOCK OFFERING INVESTORS IN SAVOY PICTURES ENTERTAINMENT INC ARE TAKING THE INDEPENDENT FILM DISTRIBUTOR PUBLIC IN A 32 MILLION INITIAL STOCK OFFERING A YEAR AFTER RAISING MORE THAN 100 MILLION FROM PRIVATE INVESTORS THE COMPANY STARTED LAST FEBRUARY BY FORMER COLUMBIA PICTURES ENTERTAINMENT INC CHIEF EXECUTIVE OFFICER VICTOR KAUFMAN AND ANOTHER FORMER COLUMBIA EXECUTIVE LEW KORMAN PLANS TO SELL TWO MILLION SHARES PRICED BETWEEN 13 AND 15 EACH AFTER THE OFFERING THE UPSTART FILM DISTRIBUTOR WILL HAVE ABOUT 163 MILLION OF EQUITY AND ABOUT 27 MILLION IN LONGTERM DEBT CURRENT STOCKHOLDERS WILL KEEP 87 OF SHARES OUTSTANDING THE COMPANY SAID IT PLANS TO DISTRIBUTE 12 NEW FILMS THROUGH LATE 1994 AND 15 A YEAR AFTERWARD AMONG THE FILMS IN PREPARATION ARE A BRONX TALE WITH ROBERT DENIRO AND SHADOWLANDS WITH ANTHONY HOPKINS 9302090054 930209 BUSINESS BRIEF LEWIS GALOOB TOYS INC COMPANY POSTS NET INCOME OF 967000 FOR 4TH PERIOD LEWIS GALOOB TOYS INC POSTED ITS FIRST PROFITABLE QUARTER SINCE 1989 DUE TO THE SUCCESS OF GAME GENIE VIDEO GAME ENHANCERS AND MICRO MACHINES MINIATURE VEHICLES FOR THE YEAR GALOOB REPORTED A LOSS OF 24 MILLION OR 59 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 75 MILLION OR 114 A SHARE REVENUE IN 1992 GREW 10 TO 1663 MILLION FROM 1506 MILLION THE PREVIOUS YEAR IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK WAS QUOTED AT 325 DOWN 25 CENTS 9302090053 930209 WHO'S NEWS COORS BREWING NAMES KIELY TO BE PRESIDENT BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN COLO COORS BREWING CO NAMED W LEO KIELY FORMERLY A DIVISION PRESIDENT FOR FRITOLAY INC ITS PRESIDENT AND CHIEF OPERATING OFFICER MARKING THE FIRST TIME THE COORS FAMILY HAS PICKED A NONFAMILY MEMBER TO LEAD BREWERY OPERATIONS MR KIELY WHO HAS EXTENSIVE CONSUMER MARKETING EXPERIENCE WAS BROUGHT IN TO BOOST THE NATION'S NO 3 BREWER A UNIT OF ADOLPH COORS CO IN AN EXPENSIVE BATTLE FOR MARKET SHARE WITH ANHEUSERBUSCH INC AND PHILIP MORRIS COS IN ADDITION HE FILLS A MANAGEMENT VOID CREATED WHEN MANY COORS FAMILY MEMBERS LEFT THE BREWERY WITH THE SPINOFF OF COORS'S NONBREWERY BUSINESSES INTO A SEPARATE COMPANY LAST YEAR MR KIELY 46 YEARS OLD WILL BE RESPONSIBLE FOR BREWERY OPERATIONS DISTRIBUTION SALES AND MARKETING SUCCEEDING PETER COORS 46 WHO IS NOW CHIEF EXECUTIVE OFFICER AND VICE CHAIRMAN OF THE BREWING COMPANY COORS'S LEGAL ENVIRONMENTAL AND FINANCIAL STAFF WILL CONTINUE TO REPORT TO MR COORS WILLIAM COORS 76 PETER COORS'S UNCLE REMAINS CHAIRMAN OF BOTH THE PARENT COMPANY AND THE UNIT AT FRITOLAY A UNIT OF PEPSICO INC MR KIELY WAS RESPONSIBLE FOR SALES AND MARKETING HUMAN RESOURCES MANUFACTURING AND DISTRIBUTION FOR THE MIDWEST AND SOUTH CENTRAL STATES HE HAS SPENT HIS ENTIRE CAREER IN CONSUMER GOODS BUSINESSES INCLUDING PROCTER & GAMBLE CO WILSON SPORTING GOODS CO AND SEVENUP BY HIRING A PRESIDENT PETER COORS SAID THAT HE CAN NOW FOCUS ON LEGISLATIVE AND FINANCIAL MATTERS I NEEDED SOME HELP HE SAID OUR TRACK RECORD HAS BEEN TERRIFIC IN THIS COMPETITIVE BUSINESS ENVIRONMENT YET I HAVE HAD THE FEELING THAT TO MOVE US FORWARD WOULD TAKE SOME ADDITIONAL LEADERSHIP MR KIELY SAID HIS FOCUS AT COORS WILL BE ON MARKETING AN AREA OF THE BEER BUSINESS COORS WAS SLOWER TO DEVELOP THAN WERE NO 1 RIVAL ANHEUSERBUSCH AND NO 2 MILLER BREWING CO A UNIT OF PHILIP MORRIS HE HAS HIS WORK CUT OUT FOR HIM SAID EMANUEL GOLDMAN ANALYST AT PAINEWEBBER INC IN SAN FRANCISCO WHILE MR KIELY'S BACKGROUND IN MARKETING CONSUMER PRODUCTS WILL HELP HIM SELL BEER THE MARGIN OF ERROR IS MUCH SMALLER IN THE BREWING BUSINESS SAID MR GOLDMAN A LOT OF PEOPLE VIEW THE BEER THEY DRINK AS A STATEMENT ABOUT THEMSELVES THAT'S NOT THE CASE WITH THE POTATO CHIP THEY EAT MESS AROUND WITH A BEER'S IMAGE AND YOU MESS AROUND WITH THE CONSUMER'S SELFIMAGE HE SAID ANOTHER CHALLENGE FOR MR KIELY WILL BE LEARNING TO COMPETE AS THE UNDERDOG WITH A MUCH SMALLER ADVERTISING BUDGET THAN HIS COMPETITORS HAVE AT FRITOLAY HE WAS IN CHARGE OF A DIVISION OF THE NATION'S LEADING SNACK FOOD MAKER WHICH HAS A 50 MARKET SHARE COORS HAS ABOUT 10 OF THE NATION'S BEER MARKET COMPARED WITH MORE THAN 40 FOR ANHEUSERBUSCH AND OVER 20 FOR MILLER THE MANAGEMENT CHANGE FOLLOWS A MAJOR RESTRUCTURING AT COORS WHICH SPLIT OFF ITS NONBREWERY OPERATIONS INTO A NEW COMPANY ACX TECHNOLOGIES INC IN DECEMBER MANY COORS RELATIVES WENT WITH ACX LEAVING BOTH PETER AND WILLIAM COORS AS THE ONLY COORS FAMILY MEMBERS IN THE BREWING COMPANY'S MANAGEMENT 9302090052 930209 ABREAST OF THE MARKET INDUSTRIALS DECLINE 460 TO 343754 DESPITE ADVANCES BY OIL STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OIL STOCKS CLIMBED BUT BROAD MARKET AVERAGES SLIPPED AS INVESTORS BACKED AWAY FROM SOME ECONOMICALLY SENSITIVE ISSUES THE DOW JONES INDUSTRIAL AVERAGE FELL 460 POINTS TO 343754 AFTER HITTING TWO CONSECUTIVE RECORDS LAST WEEK STANDARD & POOR'S 500STOCK INDEX SLID 108 POINTS TO 44785 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 053 POINT TO 24707 BOTH INDEXES ALSO SET HIGHS LAST WEEK VOLUME ON THE BIG BOARD TOTALED 240350000 SHARES COMPARED WITH THE ROBUST 320960000 SHARES FRIDAY DECLINING ISSUES EDGED OUT ADVANCERS 973 TO 929 ED LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY SAID INVESTORS WERE POURING MONEY INTO OIL STOCKS YESTERDAY BETTING THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL AGREE ON SIGNIFICANT PRODUCTION CUTS AT ITS MEETING IN VIENNA ON SATURDAY EVEN THOUGH OIL PRICES ACTUALLY FELL YESTERDAY STOCKS OF SOME BIG OIL COMPANIES ROSE TEXACO GAINED 1 TO 62 3/4 EXXON CHALKED UP 1 TO 62 7/8 MOBIL GAINED 7/8 TO 65 7/8 BRITISH PETROLEUM ROSE 7/8 TO 47 3/4 AND CHEVRON ADDED 1 TO 76 SALOMON BROTHERS RAISED ITS INVESTMENT RATINGS ON SOME OF THOSE ISSUES YESTERDAY THE RALLY IN OIL STOCKS TOGETHER WITH GAINS IN EASTMAN KODAK AND INTERNATIONAL BUSINESS MACHINES HELPED MASK THE WEAKNESS IN THE DOW SAID MR LAUX KODAK GAINED 2 3/8 TO 53 3/8 AND IBM ROSE 7/8 TO 52 7/8 WITHOUT THOSE GAINS THE INDUSTRIALS WOULD HAVE BEEN MUCH LOWER HE SAID SOME OF THAT WEAKNESS WAS CAUSED BY INVESTORS PULLING MONEY FROM CYCLICAL STOCKS WHICH HAD RALLIED SHARPLY LAST WEEK ON SIGNS THE ECONOMY WAS IMPROVING FOR INSTANCE ALUMINUM CO OF AMERICA DROPPED 1 1/8 TO 76 1/2 GIVING BACK MOST OF THE GAINS IT RACKED UP FRIDAY AND ALLIEDSIGNAL SAGGED 1 1/2 TO 64 1/2 AFTER SCORING HEAVILY LAST WEEK MORGAN STANLEY'S INDEX OF CYCLICAL STOCKS SHOWED ECONOMICALLY SENSITIVE ISSUES DROPPING 211 POINTS TO 26638 WHILE AN INDEX OF CONSUMER STOCKS EASED 100 TO 20243 W ANTHONY HITSCHLER CHIEF INVESTMENT OFFICER AT BRANDYWINE ASSET MANAGEMENT SAID HE HAS BEEN BUYING SOME OF THE LOWER QUALITY CYCLICALS RECENTLY BECAUSE THAT IS WHERE THE GREATEST VALUE LIES AND HE THINKS THAT AS INVESTORS BECOME MORE CONFIDENT ABOUT THE ECONOMIC RECOVERY THAT IS WHERE THE BIGGEST GAINS WILL BE FOUND GENERAL MOTORS WAS THE SECOND MOST ACTIVELY TRADED ISSUE ON THE BIG BOARD RISING 1 TO 38 7/8 THE DETROIT AUTO MAKER AMENDED A PREVIOUSLY FILED LAWSUIT TO CHARGE NATIONAL BROADCASTING CO A UNIT OF GENERAL ELECTRIC AND THE INSTITUTE FOR SAFETY ANALYSIS WITH DEFAMATION ACCORDING TO THE AMENDED SUIT NBC'S TELEVISED REPORT CRITICAL OF GM'S PICKUP TRUCK DESIGN USED TRUCKS RIGGED TO EXPLODE ON IMPACT ALSO ON FRIDAY AFTERNOON GM SAID IT HAD A VERY STRONG FOURTH QUARTER HINTING THAT NORTH AMERICAN OPERATIONS WERE PROFITABLE IN THE PERIOD EASTMAN KODAK'S JUMP OF 2 3/8 TO 53 3/8 REFLECTED NATWEST SECURITIES STARTING COVERAGE OF THE PHOTOGRAPHIC PRODUCTS GIANT RATING ITS STOCK A BUY WHEELINGPITTSBURGH SOARED 2 TO 9 1/2 ANALYSTS HAVE BEEN TELLING CLIENTS TO BUY THE STEELMAKER'S STOCK EVEN THOUGH THE COMPANY WAS UNPROFITABLE IN THE FOURTH QUARTER AND IN 1992 ONE OF THE REASONS ANALYSTS ARE SO BULLISH ON THE STOCK IS THEY EXPECT NEW TARIFFS ON STEEL IMPORTS TO FAVOR DOMESTIC STEELMAKERS PET SKIDDED 1 7/8 TO 16 1/8 THE SPECIALTY FOOD COMPANY'S STOCK WAS HAMMERED AFTER NEWS THAT PEPSICO WILL DEVELOP A LINE OF TACO BELL PRODUCTS FOR SALE ON GROCERY SHELVES PET'S BIGGEST BRAND IS OLD EL PASO A LINE OF MEXICAN FOOD PRODUCTS FIBREBOARD JUMPED 2 5/8 TO 11 1/8 CNA FINANCIAL SAID CONTINENTAL CASUALTY INTENDS TO DISCUSS A GLOBAL SETTLEMENT OF ITS ASBESTOSRELATED BODILY INJURY LITIGATION WITH FIBREBOARD AN INSULATION PRODUCTS COMPANY MORRISON KNUDSEN ADVANCED 1 3/8 TO 22 THE ENGINEERING AND CONSTRUCTION CONCERN SAID LATE FRIDAY THAT IT EARNED 69 MILLION OR 23 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH 57 MILLION OR 19 CENTS A SHARE A YEAR EARLIER MANY ANALYSTS WERE EXPECTING EARNINGS OF 22 CENTS A SHARE IN THE LATEST QUARTER KROGER EDGED UP 7/8 TO 17 3/4 THE SUPERMARKET CONCERN'S PROFITS SWELLED TO 531 MILLION OR 57 CENTS A SHARE IN THE FOURTH QUARTER FROM 294 MILLION OR 33 CENTS A SHARE A YEAR EARLIER AMERICAN SCIENCE & ENGINEERING ADDED 7/8 TO 7 3/8 THE COMPANY SAID PROFIT BALLOONED TO 651000 OR 16 CENTS A SHARE IN THE THIRD QUARTER FROM 162000 OR FOUR CENTS A SHARE A YEAR EARLIER BARR LABORATORIES SLIPPED 1/4 TO 8 3/4 THE MAKER OF GENERIC DRUGS PLANS TO CUT 20 OF ITS JOBS IN A RESTRUCTURING FOLLOWING A COURT ORDER LAST WEEK TO TEMPORARILY SUSPEND 24 OF ITS PRODUCTS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 063 TO 41716 THERE WERE 318 GAINERS AND 261 DECLINERS 9302090051 930209 COMMODITIES PRICES OF LUMBER FUTURES CONTINUE THEIR CLIMB RISING DAILY LIMIT FOR 11TH TRADING DAY IN ROW BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO LUMBER FUTURES PRICES CLIMBED THE DAILY LIMIT FOR THE 11TH CONSECUTIVE TRADING DAY BUT THERE WERE SIGNS THAT A SEMBLANCE OF NORMALITY MAY BE RETURNING TO THE TURBULENT LUMBER MARKET THE CHICAGO MERCANTILE EXCHANGE EXPANDED DAILY PRICEMOVE LIMITS FOR ITS LUMBER FUTURES CONTRACTS LAST WEEK AFTER BEING BESIEGED BY REQUESTS FROM TRADERS THE LUMBER CONTRACT HAD BEEN LOCKED AT THE DAILY PRICEMOVE LIMIT FOR MORE THAN A WEEK AND MANY TRADERS HAD BEEN UNABLE TO TAKE ADVANTAGE OF THE MOST SUSTAINED PRICE MOVE IN RECENT MEMORY YESTERDAY LUMBER FOR MARCH DELIVERY ROSE BY THE EXPANDED 15 PRICE LIMIT SETTLING AT 35350 A THOUSAND BOARD FEET ANALYSTS SAID THE CONTRACT TRADED ACTIVELY THROUGHOUT THE DAY THE FUTURES ARE GETTING INTO A CATCHUP MODE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE BASIC FUNDAMENTAL STRENGTH IN THE MARKET HAS NOT ENDED BUT I THINK WE ARE GETTING TO THE POINT WHERE WE ARE LIKELY TO SEE FREE TRADING OF THE FUTURES THE MARCH CONTRACT OPENED AT 345 A THOUSAND BOARD FEET AND THEN WAS BUFFETED SHARPLY LOWER BY SPECULATIVE PROFITTAKING ANALYSTS SAID AFTER RETREATING TO ABOUT 324 HOWEVER LUMBER WHOLESALERS ENTERED THE MARKET BUYING IN FORCE THIS BUYING OCCURRED BECAUSE PRICES ON THE CASH MARKET FOR LUMBER ARE AT ABOUT 385 A THOUSAND BOARD FEET AND MANY USERS OF LUMBER ARE EAGER TO LOCK IN THE SUPPLIES THEY NEED BY BUYING FUTURES CONTRACTS AT CURRENT PRICE LEVELS WITH CASH PRICES SO HIGH MANY ANALYSTS PREDICT THAT THE STRANGE BULL MARKET OF 1993 HASN'T YET RUN ITS COURSE SINCE THE CHICAGO MERC ON THURSDAY EXPANDED ITS DAILY PRICEMOVE LIMIT FROM 5 A DAY TO A BALLOONING LIMIT SCALE THAT RISES FIRST TO 10 A DAY AND THEN TO 15 A DAY THE MARCH CONTRACT HAS REACHED THE LIMIT EACH DAY AND ANALYSTS SAY LUMBER OPTIONS CONTRACTS ARE PRICED AT HIGH LEVELS THAT SUGGEST LUMBER FUTURES PRICES WILL CONTINUE TO RISE ORDER BOOKS FOR LUMBER MILLS IN THE PACIFIC NORTHWEST AND CANADA'S BRITISH COLUMBIA REGION ARE STILL FILLED THROUGH MIDMARCH AS LUMBER YARDS AND CONSTRUCTION COMPANIES SCRAMBLE TO GET THE LUMBER THEY NEED FOR INCREASING CONSTRUCTION OF SINGLEFAMILY HOMES THE THING THAT'S CRITICAL IS THAT LUMBER FUTURES ARE STILL AT A BIG DISCOUNT TO CASH SAID STEVEN MOORE PRESIDENT OF THE MOORE RESEARCH CENTER A COMMODITY ANALYSIS FIRM THE FIREWORKS ARE FAR FROM BEING OVER IN OTHER COMMODITY MARKETS YESTERDAY COFFEE SPECULATORS HAMMERED COFFEE FUTURES PRICES IN HEAVY TRADING DRIVING THE MARCH CONTRACT 535 CENTS LOWER TO 5725 CENTS A POUND THE ACTIVELY TRADED MAY CONTRACT FINISHED 510 CENTS LOWER AT 6180 CENTS A POUND JUDITH GANES A SENIOR MERRILL LYNCH ANALYST SAID THE PRICE DROP WAS BECAUSE OF BIG SALES BY COFFEE ROASTERS MONDAY'S CLOSE OF THE MARCH CONTRACT WAS THE LOWEST SETTLEMENT FOR COFFEE FUTURES SINCE LATE LAST SUMMER AND ANALYSTS SAID THEY EXPECT THE NEXT SUPPORT LEVEL TO COME IN AROUND THE AUGUST 1992 LOW OF 54 CENTS A POUND MS GANES SAID SHE BELIEVES THE MARCH CONTRACT IS HEADED BELOW 50 CENTS A POUND BEFORE IT EXPIRES NEXT MONTH YOU COULD STILL MAKE A POSITIVE ARGUMENT FOR COFFEE BECAUSE OF SOME INDICATIONS OF TIGHTENING SUPPLIES MS GANES SAID BUT THE RECENT SHARP DECLINES IN COFFEE FUTURES PRICES NOW INDICATE THAT KEY MARKET PLAYERS COMMODITY FUNDS COFFEE ROASTERS AND SPECULATORS ARE INCREASINGLY CONVINCED THAT A RALLY IS NOT IN THE CARDS FOR THE NEAR TERM MS GANES SAID THE FAILURE OF THE INTERNATIONAL COFFEE ORGANIZATION TO MOVE COFFEE PRODUCER AND CONSUMER NATIONS CLOSER TO AN EXPORT ACCORD AT ITS LONDON MEETING LAST WEEK HAS ROBBED THE MARKET OF ANY NEARTERM BUOYANCY ANALYSTS SAID ENERGY EVIDENCE MOUNTED THAT SOME MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE GOING AHEAD WITH PLANS TO REDUCE PRODUCTION SOME AS EARLY AS MARCH 1 ALSO ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT RETURNED TO CARACAS AFTER VISITING NIGERIA AND GABON AND HE SAID AGAIN THAT ALL 12 MEMBERS HAD AGREED TO REDUCE TOTAL OUTPUT BY AT LEAST ONE MILLION BARRELS A DAY BUT THAT DIDN'T HELP OIL MARKETS MUCH PRICES WERE MOSTLY LOWER IN THIN TRADING LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY SETTLED 13 CENTS A BARREL LOWER AT 2008 ON THE NEW YORK MERCANTILE EXCHANGE MEANWHILE THE FOCUS OF OIL MARKETS IS LIKELY TO TURN TOMORROW TO A CONFERENCE OF CAMBRIDGE ENERGY RESEARCH ASSOCIATES OR CERA IN HOUSTON HISHAM NAZER THE SAUDI ARABIAN OIL MINISTER WHO INITIALLY PROPOSED THE OPEC PRODUCTION CUT OF ONE MILLION BARRELS A DAY WILL SPEAK AT THE CONFERENCE YESTERDAY JOSEPH STANISLAW A CERA MANAGING DIRECTOR TOLD REPORTERS THAT IF THE OIL MINISTERS WHO MEET SATURDAY IN VIENNA DON'T AGREE ON OPEC OUTPUT CUTS TOTALING A MINIMUM ONE MILLION BARRELS A DAY OIL PRICES WILL FALL ERASING THE RECENT 2 GAIN COPPER COPPER FUTURES PRICES EDGED UP OVER THE PSYCHOLOGICALLY IMPORTANT 1 A POUND RESISTANCE LEVEL AMID GROWING SIGNS THAT THE US ECONOMIC RECOVERY WILL BOOST DEMAND FOR THE WIDELY USED METAL ANALYSTS SAID COPPER FOR MARCH DELIVERY ROSE 060 CENT TO 10050 A POUND MORE AND MORE INDICATORS OUT OF NORTH AMERICA POINT TO BETTER COPPER DEMAND AND THAT HAS GIVEN THE MARKET A PSYCHOLOGICAL LIFT SAID JAMES STEEL A SENIOR ANALYST WITH REFCO IN NEW YORK NOW THAT WE ARE OVER A 1 A POUND MR STEEL CONTINUED THE TECHNICIANS WILL TRY TO TAKE IT OVER ITS RECENT HIGH OF 10140 TECHNICAL TRADERS BASE THEIR TRADING STRATEGY ON HISTORICAL PRICE TRENDS MR STEEL PREDICTED THAT COPPER WILL HIT STRONG RESISTANCE AT 102 A POUND PRICE LEVELS ABOVE 102 A POUND ARE NOT SUSTAINABLE FOR THE TIME BEING MR STEEL SAID BECAUSE WORLD OUTPUT IS TOO STRONG PARTICULARLY AT MINES IN CHILE MEXICO AND PERU BERNARD SAVAIKO A METAL ANALYST WITH PAINEWEBBER SAID HE EXPECTED AN EVEN MORE ROBUST RECOVERY THAN WE'VE SEEN TECHNICALLY THE MARKET IS POISED TO MOVE A LITTLE HIGHER TO 102 TO 10250 A POUND ANALYSTS NOTED THAT MARCH COPPER FUTURES ARE STILL FAR FROM REVISITING LIFEOFCONTRACT HIGHS OF 11480 A POUND POSTED LAST AUG 18 THE LAST MAJOR RALLY CARRIED US TO 108 AND THEN FELL OFF A CLIFF NOTED MR SAVAIKO AT THIS POINT THE MOST OPTIMISTIC SCENARIO WOULD TAKE US TO 104 WHICH WOULD BASICALLY FILL IN THE GAP 9302090050 930209 FLEET MORTGAGE TO REFUND EXCESS ESCROW AMOUNTS FLEET MORTGAGE GROUP INC AS EXPECTED AGREED TO REFUND EXCESS MORTGAGE ESCROW AMOUNTS KEPT IN CUSTOMER ACCOUNTS AS PART OF A SETTLEMENT WITH 26 STATE ATTORNEYS GENERAL THE SETTLEMENT WITH FLEET ONE OF THE NATION'S LARGEST MORTGAGE LENDERS FOLLOWS A SIMILAR AGREEMENT LAST YEAR BY STATES WITH GMAC MORTGAGE CORP A UNIT OF GENERAL MOTORS CORP THE ATTORNEYS GENERAL ESTIMATE THE FLEET SETTLEMENT WILL RESULT IN REFUNDS OR REDUCED MORTGAGE PAYMENTS OF ABOUT 150 MILLION REFUNDS WILL BE MONEY FROM CUSTOMERS' OWN ESCROW ACCOUNTS AND THUS WON'T HAVE A MATERIAL IMPACT ON FLEET FLEET ALSO AGREED TO PAY 520000 TO COVER THE STATES' LEGAL COSTS UNDER A CONSENT DECREE FILED IN FEDERAL COURT IN MANHATTAN FLEET OF COLUMBIA SC WILL CHANGE ITS METHOD OF CALCULATING REQUIRED ESCROW PAYMENTS WHICH COVER REAL ESTATE TAXES INSURANCE AND OTHER COSTS STATE OFFICIALS CONTEND CUSTOMERS WHO EARN LITTLE OR NO INTEREST ON ESCROW ACCOUNTS IN MOST STATES WERE REQUIRED BY FLEET TO MAKE HIGHER ESCROW PAYMENTS THAN NECESSARY UNDER THE CONSENT DECREE WHICH IS PENDING COURT APPROVAL THE COMPANY ADMITTED NO WRONGDOING FLEET MORTGAGE IS 81OWNED BY FLEET FINANCIAL GROUP INC PROVIDENCE RI 9302090049 930209 BUSINESS BRIEF ENTERPRISE OIL PLC SOME NORTH SEA OIL FIELDS ARE SOLD TO C ITOH ENERGY ENTERPRISE OIL PLC SAID IT SOLD A NUMBER OF ITS UK NORTH SEA OIL FIELDS TO C ITOH ENERGY DEVELOPMENT CO A UNIT OF ITOCHU CORP OF JAPAN FOR 106 MILLION ENTERPRISE LONDON SAID THE SALE INCLUDES ITS 26 STAKE IN THE HUDSON FIELD DEVELOPMENT ITS 86 STAKE IN THE HUTTON FIELD AND ITS 26 INTEREST IN THE NORTH WEST HUTTON FIELD ENTERPRISE SAID THAT THE SALE FORMS PART OF ITS CONTINUING PROGRAM OF PORTFOLIO MANAGEMENT INVOLVING BUYING AND SELLING OIL ASSETS AT ATTRACTIVE PRICES PROCEEDS FROM THE SALE ARE TO BE USED FOR GENERAL CORPORATE PURPOSES ENTERPRISE SAID 9302090048 930209 INTERNATIONAL BRIEF VOLKSWAGEN AG AUTO MAKER HOPES TO TRIM WORK FORCE BY 36000 BY '97 GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN AG SAID IT WILL TRY TO REDUCE ITS WORLDWIDE WORK FORCE BY 36000 BY 1997 THIS IS A GUIDELINE FOR OUR PERSONNEL PLANNING FOR THE NEXT FIVE YEARS SAID VW SPOKESMAN ORTWIN WITZEL IT IS NOT A TARGET THE FIGURE OF 36000 REPRESENTS AN INCREASE IN THE NUMBER OF WORKERS VW IS EXPECTED TO SEEK TO CUT VW OFFICIALS PREVIOUSLY SAID OFF THE RECORD THAT THE COMPANY WOULD SEEK TO TRIM ITS STAFF BY 30000 VW EMPLOYED 276000 AT THE END OF 1992 THE COMPANY WAS EXPECTED TO CUT 11400 JOBS FROM ITS VOLKSWAGEN DIVISION WHICH INCLUDES OPERATIONS IN BELGIUM FRANCE ITALY AND THE UNITED KINGDOM THE NUMBER OF JOBS AT ITS AUDI DIVISION WAS EXPECTED TO BE REDUCED BY 9300 WHILE ITS SKODA DIVISION WAS TO BE UNCHANGED IN ITS OVERSEAS DIVISION THE NUMBER OF JOBS WAS EXPECTED TO BE REDUCED BY ABOUT 10000 THE OVERSEAS DIVISION INCLUDES OPERATIONS IN THE US MEXICO CANADA SOUTH AFRICA AND JAPAN IN ADDITION THE OVERSEAS DIVISION IS RESPONSIBLE FOR VW'S 51 STAKE IN AUTOLATINA THE AUTO MAKER'S ARGENTINE AND BRAZILIAN OPERATION 9302090047 930209 BUSINESS BRIEF ARKLA INC BOARD AUTHORIZES EVALUATION OF A SALE OR JOINT VENTURE ARKLA INC'S BOARD AUTHORIZED THE SHREVEPORT LA COMPANY TO EVALUATE THE SALE OF ITS INTERSTATE NATURALGAS PIPELINE BUSINESS AS WELL AS TO ANALYZE JOINTVENTURE POSSIBILITIES IN A FILING LAST WEEK WITH THE SECURITIES AND EXCHANGE COMMISSION ARKLA ALSO SAID IT WOULD CONSIDER CONTRACTUAL ALLIANCES IN AN EFFORT TO RETURN ITS INTERSTATE PIPELINE BUSINESS TO PROFITABILITY THE FILING ADDED THAT THE COMPANY IS CONTINUING ITS EFFORTS TO SELL AN INTRASTATE PIPELINE LOUSIANA INTRASTATE GAS CORP ARKLA ALSO OPERATES GAS DISTRIBUTION NETWORKS A COMPANY SPOKESMAN SAID THE EVALUATION OF THE INTERSTATE BUSINESS HAD ONLY JUST BEGUN AND THAT HE DOESN'T BELIEVE ANY TALKS WITH OUTSIDE FIRMS HAVE TAKEN PLACE WALL STREET ANALYSTS SAID THE LIKELY CANDIDATE FOR A JOINT VENTURE OR SALE IS THE ARKLA ENERGY RESOURCES PIPELINE WHICH HAS BEEN UNPROFITABLE BECAUSE OF HIGH DEBT AND HEAVY COMPETITION THAT HAS KEPT VOLUMES LOW DANIEL TULIS OF SMITH BARNEY HARRIS UPHAM & CO SAID IT IS DIFFICULT TO QUANTIFY THE SIZE OF A SALE BECAUSE HE BELIEVES POTENTIAL BUYERS ARE SCARCE HE SAID A JOINT VENTURE WAS MORE LIKELY 9302090046 930209 INTERNATIONAL BRIEF DAF NV OFFICIALS PLAN NEW COMPANY OUT OF OLD WITH FEWER JOBS COURT APPOINTED ADMINISTRATORS FOR THE FINANCIALLY STRAPPED ANGLODUTCH TRUCKMAKER DAF NV PLAN TO FORM A NEW COMPANY OUT OF THE FORMER ONE BUT WITH A FAR MORE LIMITED SCOPE OF OPERATION THE ADMINISTRATORS SAID THEY EXPECT THAT AT LEAST HALF THE JOBS AT THE COMPANY'S FACILITIES IN WESTERLO BELGIUM AND EINDHOVEN THE NETHERLANDS WILL HAVE TO GO OUT OF A GLOBAL WORK FORCE OF ABOUT 12500 DAF EMPLOYS ABOUT 5000 AT ITS BIG EINDHOVEN FACILITY AND 1500 PEOPLE AT WESTERLO ABOUT 5500 EMPLOYEES ARE BASED IN THE UNITED KINGDOM THE PRICE OF DAF SHARES ON THE AMSTERDAM EXCHANGE PLUNGED YESTERDAY TO 95 DUTCH CENTS 51 US CENTS DOWN FROM 250 GUILDERS OR 62 FROM FRIDAY WHEN IT RALLIED ON HOPES OF A BAILOUT SEPARATELY GENERALE DE BANQUE OF BELGIUM DENIED NEWS REPORTS IT WILL TAKE OVER DAF'S BELGIAN ARM GENERALE DE BANQUE IS ONE OF DAF'S NINE CREDITOR BANKS 9302090045 930209 REVIEW & OUTLOOK EDITORIAL THE JOBS MARKETS THE CLINTON ADMINISTRATION IS GOING AROUND SAYING THAT THEY STILL NEED A STIMULUS PACKAGE BECAUSE THE ECONOMY ISN'T CREATING JOBS FAST ENOUGH NOW THIS IS AN EXCELLENT SUBJECT LET'S SAY YOUR BUSINESS IS PICKING UP AND YOU CAN SELL 10 MORE WIDGETS THIS YEAR YOU COULD A HIRE AN ADDITIONAL WORKER B PAY OVERTIME C ASK A TEMP AGENCY TO SEND YOU A PAIR OF TEMPORARY HANDS OR D INVEST IN SOME EXPENSIVE MACHINERY TO PRODUCE MORE WITH THE SAME HOURS OF LABOR IN THE PAST SUCH COMPANIES CONFIDENT BUT CAPITAL SHORT FELT HIRING THE NEW WORKER WAS THE NATURAL WAY TO GROW NOT ANYMORE WHICH IS WHY THERE'S A DISCONNECTION BETWEEN THE REBOUNDING ECONOMY AND THE FLAT JOB MARKET IT'S UNDERSTANDABLE WHEN YOU CONSIDER WHAT OPTION A ENTAILS NOW FIRST ALL KINDS OF RULES NOW LIMIT WHAT YOU CAN FIND OUT ABOUT THE APPLICANTS FOR A JOB YOU CAN BE SUED FOR VIOLATING THEM AND SUED IF YOU FIRE OR FAIL TO ADVANCE SOMEBODY YOU DIDN'T WANT FROM DAY ONE ONCE A PERSON IS ON THE PAYROLL YOU'RE RESPONSIBLE FOR PAYING A MINIMUM WAGE WHICH THE CLINTON LABOR DEPARTMENT WANTS TO PUSH CLOSE TO 5 AN HOUR YOU MUST COUGH UP NEARLY 8 OF WAGES IN SOCIAL SECURITY TAX MAYBE 5 OF THE FIRST FEW MONTHS' PAY FOR UNEMPLOYMENT INSURANCE MORE THAN THAT IN MANY PLACES FOR WORKERS' COMP AND POSSIBLY A STATE TRAINING TAX THAT MAY SOON BE JOINED BY A CLINTONINSPIRED FEDERAL LEVY ON TOP OF WHAT YOU ALREADY SPEND ON TRAINING IF YOU AREN'T ALREADY OFFERING A MEDICALDENTAL PLAN YOU MAY HAVE TO IN THE FUTURE UNDER THE HILLARY PLAN YOU OF COURSE PROVIDE SOME PAID VACATION TIME AND ABSORB A FEW SICK DAYS EACH YEAR AND NOW YOU'LL BE ADDING PARENTAL LEAVE TO THAT ESPECIALLY IF THE EMPLOYEE IS A WOMAN OF CHILDBEARING AGE BUT YOU CAN'T DISCRIMINATE ON THAT BASIS IF AT SOME POINT YOU NEED TO LET THE PERSON GO THERE IS SEVERANCE AND IF NOT YOUR OBLIGATIONS AFTER RETIREMENT IT ALL ADDS UP WHO NEEDS IT NOT ME MORE EMPLOYERS ARE SAYING THAT'S WHY BY THE END OF LAST YEAR THE NUMBER OF AMERICANS CLASSIFIED BY THE BUREAU OF LABOR STATISTICS AS TEMPORARY WORKERS 15 MILLION WAS RUNNING 16 ABOVE 1991 AND QUADRUPLE THE TOTAL A DECADE EARLIER MANY TEMPS WORK FULL TIME AS PART OF THE NATION'S CONTINGENT LABOR FORCE SERVING COMPANIES THAT DON'T WISH TO CARRY THEM ON THE TRADITIONAL PAYROLL ANOTHER SENSE OF THIS CONTINGENT SECTOR CAN BE GLEANED FROM BLS SURVEY DATA ON NONAGRICULTURAL SELFEMPLOYMENT AND PARTTIME WORKERS THE SEASONALLY ADJUSTED JANUARY '93 NUMBERS JUST OUT SHOW THIS TOTAL HOVERING NEAR 30 MILLION UP MORE THAN 10 FROM 10 YEARS BEFORE THE GROWTH IN TEMPS IS FASTEST IN MANUFACTURING SAYS ECONOMIST AUDREY FREEDMAN OF MANPOWER PLUS A NEW YORK CONSULTANCY ONE OF HER CLIENTS A TOILETRIES MAKER GETS 600 OF ITS 900 WORKERS THIS WAY BESIDES AVOIDING POLITICALLY IMPOSED PAYROLL HEADACHES SUCH COMPANIES GAIN FLEXIBILITY IN THEIR OUTPUT SUITABLE FOR TODAY'S JUSTINTIME INVENTORY PRACTICES EVEN PRODUCERS NOT COMFORTABLE WITH TEMPS ON THE ASSEMBLY LINE HAVE BEEN CONTRACTING OUT SOME PLANT SERVICES TO VENDORS WHO IN TURN MAY RELY ON PERSONNEL SUPPLIERS TEMP SUPPLIERS NOT ONLY ALLOW AN OPERATION TO FLUCTUATE IN STAFFING BUT OFFER A WAY TO TRY OUT POTENTIAL FULLTIME EMPLOYEES SO IT MAY BE THAT THESE EXTRAWAGE COSTS WHICH ACCORDING TO A GARY SHILLING & CO HAVE RISEN AS A SHARE OF BUSINESS OUTPUT TO 121 FROM 77 IN 1970 ARE PUSHING US TOWARD THE WORK FORCE OF TOMORROW ONE IN WHICH PEOPLE MOVE AMONG EMPLOYERS AS THE NEEDS DEMAND BUT WE'RE GETTING AHEAD OF OURSELVES IN THAT BENEFITS FOR THE AVERAGE JOE AND JILL INCLUDING PENSIONS ARE NOT YET VERY PORTABLE ANOTHER DOWNBEAT NOTE IN ALL OF THIS IS THAT THE US IS FOLLOWING THE LEAD OF EUROPE WHERE POLITICIZED EMPLOYMENT BURDENS HAVE RESULTED IN TWICE THE EXTENT OF TEMP USAGE AS HERE BUT THEY'RE STILL SUFFERING A NEW BOUT OF SCLEROSIS JAPANESE COMPANIES ALSO HAVE LONG USED FULLTIME TEMPORARY WORKERS AS A WAY TO AVOID THE BENEFITS THAT ACCRUE TO WORKERS ON THE SOCALLED LIFETIME EMPLOYMENT TRACK SO WHERE ARE THE NEW JOBS THEY'RE SUFFOCATING AMID THE MANDATED COSTS THAT ARE CLEARLY DEPRESSING TOTAL HIRING YET EARLY INDICATIONS ARE THE CLINTON ADMINISTRATION DOESN'T GRASP THIS THE LEAVE BILL SIGNED INTO LAW FRIDAY APPEARS TO BE ONLY THE START OF JOB DISINCENTIVES FROM A LABOR DEPARTMENT RUN BY A THEORETICIAN FROM THE KENNEDY SCHOOL WITH LIEUTENANTS FROM THE AFLCIO THEIR BEST IDEA FOR JOB CREATION IS LIKELY TO BE SOME KIND OF TAX CREDIT THAT WILL SKEW THE MARKETPLACE FURTHER SOME 25 MILLION AMERICANS WILL TRY TO BEGIN THEIR CAREERS BY THE YEAR 2000 NOT TO MENTION THE 10 MILLION NOW UNEMPLOYED NO DOUBT CREATIVE COMPETITION IS SUCH A POWERFUL FORCE THAT IT EVENTUALLY SKIRTS NEARLY ANY POLITICAL OBSTACLE STIMULUS NOTWITHSTANDING THERE MAY BE MANY SUCH OBSTACLES THE NEXT FOUR YEARS 9302090044 930209 BUSINESS BRIEF TRIMBLE NAVIGATION LTD NET OF 846000 IS POSTED FOR FIRM'S FOURTH QUARTER TRIMBLE NAVIGATION LTD BUOYED BY A 5 MILLION PREPAID ROYALTY POSTED FOURTHQUARTER NET INCOME OF 846000 OR FIVE CENTS A SHARE THAT COMPARES WITH A LOSS OF 42 MILLION OR 27 CENTS A SHARE A YEAR EARLIER QUARTERLY REVENUE GREW TO 372 MILLION FROM 284 MILLION THE SUNNYVALE CALIF MAKER OF SATELLITEBASED NAVIGATION PRODUCTS SAID THE ROYALTY FROM THE LICENSING OF TECHNOLOGY WASN'T ENOUGH TO PREVENT A LOSS FOR THE YEAR OF 253 MILLION OR 151 A SHARE COMPARED WITH PROFIT OF 7 MILLION OR 40 CENTS A SHARE THE LOSS BLAMED ON A SLOW WORLDWIDE ECONOMY AND A SWITCH FROM MILITARY TO COMMERCIAL CONTRACTS INCLUDED CHARGES OF 7 MILLION FOR RESTRUCTURING AND 22 MILLION FOR AN ACCOUNTING CHANGE REVENUE DROPPED TO 1276 MILLION FROM 151 MILLION WHICH THE COMPANY SAID REFLECTED LAST YEAR'S 58 MILLION SURGE OF MILITARY ORDERS FROM OPERATION DESERT STORM 9302090043 930209 BUSINESS BRIEF US HEALTHCARE INC NET INCOME INCREASED 38 IN 4TH PERIOD TO 597 MILLION US HEALTHCARE INC BLUE BELL PA REPORTED STRONG GAINS IN FOURTHQUARTER AND 1992 EARNINGS AS MEMBERSHIP IN ITS HEALTH MAINTENANCE ORGANIZATIONS ROSE 13 DURING THE YEAR THE PROVIDER OF MANAGEDCARE SERVICES REPORTED FOURTHQUARTER NET INCOME OF 597 MILLION OR 55 CENTS A SHARE UP 38 FROM 433 MILLION OR 40 CENTS A SHARE IN THE 1991 FOURTH QUARTER REVENUE ROSE 25 TO 5733 MILLION FROM 459 MILLION FOR THE YEAR US HEALTHCARE'S NET ROSE 32 TO 200 MILLION OR 185 A SHARE COMPARED WITH 1991 NET OF 1511 MILLION OR 139 A SHARE PERSHARE RESULTS ARE RESTATED TO REFLECT A 3FOR2 STOCK SPLIT LAST SEPTEMBER REVENUE ROSE 28 TO 219 BILLION FROM 17 BILLION MEMBERSHIP IN THE COMPANY'S HMOS GREW BY 165000 TO A TOTAL OF 1405000 AT DEC 31 THE LARGEST INCREASE IN SEVEN YEARS THE COMPANY ALSO SAID ITS BOARD APPROVED A NEW FIVEYEAR EMPLOYMENT AGREEMENT WITH ITS 60YEAROLD FOUNDER AND CHIEF EXECUTIVE LEONARD ABRAMSON 9302090042 930209 BUSINESS BRIEF GEOTEK INDUSTRIES INC REST OF POWERSPECTRUM'S SHARES WILL BE ACQUIRED GEOTEK INDUSTRIES INC SAID IT AGREED TO MERGE WITH ITS SUBSIDIARY POWERSPECTRUM INC TO HELP FOCUS ITS ACTIVITY ON WIRELESS TELECOMMUNICATIONS GEOTEK WHICH OWNS 62 OF POWERSPECTRUM WILL BUY OUT THE MINORITY HOLDERS IN EXCHANGE FOR ABOUT 11 MILLION REGISTERED GEOTEK SHARES AND 47 MILLION UNREGISTERED SHARES THE RAMSEY NJ TELECOMMUNICATIONS COMPANY HAS ABOUT 385 MILLION SHARES OUTSTANDING ON A FULLY DILUTED BASIS GEOTEK SHARES CLOSED YESTERDAY AT 58125 DOWN 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING POWERSPECTRUM'S MINORITY SHAREHOLDERS ARE CMS COMPANIES INC CHURCHILL INVESTMENT PARTNERS AND IRV GROSS A PRIVATE INVESTOR THE PACT IS SUBJECT TO THE APPROVAL OF GEOTEK'S BOARD AND THE SHAREHOLDERS OF BOTH COMPANIES 9302090041 930209 BUSINESS BRIEF DIAGNOSTEK INC NET FELL 64 IN ITS 3RD PERIOD AFTER ONETIME CHARGES DIAGNOSTEK INC ALBUQUERQUE NM A MAILORDER PHARMACEUTICAL COMPANY SQUEEZED BY LOWER MARGINS AND COSTS FROM AN ABORTED MERGER SAID ITS FISCAL THIRDQUARTER EARNINGS DECLINED 64 TO 13 MILLION OR FIVE CENTS A SHARE WHILE REVENUE ROSE 16 TO 853 MILLION THE COMPANY HOWEVER SAID THAT PROFIT MARGINS BATTERED IN THE FIRST HALF OF THE FISCAL YEAR ACTUALLY BEGAN TO SHOW IMPROVEMENT IN THE QUARTER ENDED DEC 31 DIAGNOSTEK HAD A 1 MILLION CHARGE IN THE QUARTER RELATED TO LEGAL EXPENSES AND COSTS FROM ITS ABORTED MERGER AGREEMENT WITH MEDCO CONTAINMENT SERVICES INC DIAGNOSTEK ALSO HAD A 11 MILLION LOSS ON A 74 MILLION INVESTMENT IN AN ADJUSTABLERATE US GOVERNMENT SECURITIES MUTUAL FUND EXCLUDING THE CHARGES THE COMPANY SAID IT WOULD HAVE EARNED 26 MILLION OR 11 CENTS A SHARE 9302090040 930209 BUSINESS BRIEF LEISURE TECHNOLOGY INC FEDERAL BANKRUPTCY COURT APPROVES REORGANIZATION LEISURE TECHNOLOGY INC SAID A FEDERAL BANKRUPTCY COURT IN LOS ANGELES APPROVED THE COMPANY'S PLAN OF REORGANIZATION CLEARING THE WAY FOR IT TO EMERGE FROM BANKRUPTCYLAW PROTECTION ON MONDAY UNDER TERMS OF THE PLAN THE OWNERS OF THE REORGANIZED COMPANY WILL BE ITS UNSECURED CREDITORS LED BY STANFORD N PHELPS PRINCIPAL OF A GREENWICH CONN INVESTMENT CONCERN MICHAEL TENZER THE COMPANY'S LONGTIME PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE WILL REMAIN WITH THE COMPANY DURING A TRANSITION PERIOD AND WILL THEN BECOME A CONSULTANT THE DEVELOPER OF ADULT COMMUNITIES HAS OPERATED UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION SINCE APRIL 26 1991 THE FUTURE OF THE COMPANY HASN'T BEEN FULLY DISCUSSED WITH NEW MANAGEMENT AND DIRECTORS BUT WE WOULD BE EXPECTING TO ANNOUNCE OUR PLANS SHORTLY AFTER FEB 15 MR TENZER SAID HE EXPECTS THE COMPANY TO CONTINUE TO OPERATE ITS EXISTING ADULT COMMUNITIES IN CALIFORNIA AND NEW JERSEY 9302090039 930209 BUSINESS BRIEF SEAGULL ENERGY CORP CONCERN NETS 1638 MILLION FROM SALE OF COMMON STOCK SEAGULL ENERGY CORP SAID IT CLOSED ITS OFFERING OF 44 MILLION COMMON SHARES NETTING THE COMPANY 1638 MILLION AFTER EXPENSES BECAUSE UNDERWRITERS EXERCISED THEIR OVERALLOTMENT OPTION TO PURCHASE AN ADDITIONAL 660000 SHARES MOST OF THE PROCEEDS WILL BE USED THIS WEEK TO RETIRE A 150 MILLION TERM LOAN THE HOUSTON COMPANY INCURRED ON DEC 31 1992 IN CONNECTION WITH ITS 397 MILLION PURCHASE OF ARKLA EXPLORATION CO SEAGULL SAID THE REMAINING PROCEEDS WILL BE APPLIED TO REDUCE THE AMOUNT OUTSTANDING UNDER A REVOLVING CREDIT LINE BECAUSE OF THE OFFERING THE COMPANY EXPECTS ITS DEBT TO DROP TO 53 OF TOTAL CAPITALIZATION AT MARCH 31 COMPARED WITH 728 PRIOR TO THE OFFERING THAT WILL ENABLE THE COMPANY TO PURSUE OUR PRIMARY CORPORATE OBJECTIVE OF ADDING TO OUR GROWING PORTFOLIO OF NATURAL GAS RESERVES CHAIRMAN BARRY J GALT SAID 9302090038 930209 FOREIGN EXCHANGE DOLLAR DRIFTS BIT LOWER AGAINST MARK AND LOSES STILL MORE GROUND TO THE YEN BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LACKING NEWS TO PROVIDE TRADING DIRECTION THE MARKET LEFT THE DOLLAR TO DRIFT SLIGHTLY LOWER AGAINST THE MARK MONDAY CONSOLIDATING ITS RECENT GAINS AGAINST THE YEN THE DOLLAR LOST MORE GROUND AS INVESTORS UNLOADING THEIR MARK HOLDINGS ACCUMULATED YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16565 MARKS OFF FROM 16590 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12375 YEN DOWN FROM 12443 YEN STERLING WAS TRADING AT 14385 DOWN FROM 14460 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16605 MARKS AND AT 12381 YEN WE'RE SEEING A BIT OF A CONSOLIDATION IN DOLLARMARK SAID NORI KATO A VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN LTD IN NEW YORK THE DOLLAR'S FUNDAMENTALS LOOK STRONG WITH THE US ECONOMY RECOVERING AND GERMAN RATES FALLING GIVING THE DOLLAR FIRM SUPPORT DEALERS SAID EARL JOHNSON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO SAID WITH THE GERMAN RATE CUT LAST WEEK AND THE GOOD US DATA THERE'S NO REAL REASON TO BE SELLING DOLLARS BUT DEALERS SAID THERE WASN'T ANY NEWS MONDAY TO ENCOURAGE DOLLAR BULLS TO BUILD ON LAST WEEK'S FOURPFENNIG RUN EITHER I THINK IT'S TIME FOR THE MARKET TO PAUSE AND REASSESS WHERE IT'S GOING SAID MICHAEL SCHAEFER FOREIGNEXCHANGE MANAGER AT NORWEST BANK CORP IN MINNEAPOLIS THE ONLY MAJOR ACTION DEALERS NOTED MONDAY WAS INVESTORS CONTINUING TO DUMP MARKS FOR YEN THE STRONGEST TREND SEEMS TO BE MARKYEN SAID INDUSTRIAL BANK OF JAPAN'S MR KATO LATE MONDAY IN NEW YORK THE MARK WAS QUOTED AT 7469 YEN OFF FROM 7529 YEN FRIDAY HARRIS TRUST'S MR JOHNSON NOTED THAT AFTER LAST WEEK'S CUT IN JAPANESE INTEREST RATES THERE'S A FEELING THAT MAYBE RATES HAVE BOTTOMED THERE GERMAN INTEREST RATES ON THE OTHER HAND ARE ONLY BEGINNING THEIR DOWNWARD CYCLE DEALERS SAID AS ECONOMIC WEAKNESS FORCES THE BUNDESBANK'S HAND MR KATO ADDED THAT MANY JAPANESE INVESTORS HAD BOUGHT MARKS DURING THE PAST SIX MONTHS ATTRACTED BY GERMANY'S HIGH INTEREST RATES NOW WITH THOSE RATES FALLING JAPANESE INVESTORS ARE SWITCHING BACK INTO YEN HE SAID DURING THE PAST WEEK THE MARK HAS FALLEN ALMOST THREE YEN PLUNGING THROUGH SUCCESSIVE TECHNICALSUPPORT LEVELS FOR THE DOLLAR DEALERS NOTED MOST OF THIS MOVE SHOWED UP AS A GAIN AGAINST THE MARK BUT MR KATO SAID THAT ON MONDAY WITH THE DOLLAR STUCK IN A RANGE VERSUS THE MARK IT WAS DOLLARYEN THAT BORE THE BRUNT OF THE MOVE IN THE CROSS RATE THIS PRESSURE BROKE THE DOLLAR'S NARROW RECENT RANGE AGAINST THE YEN SPURRING FURTHER YEN BUYING BELOW 124 YEN MR KATO SAID BECAUSE THE DOLLAR ISN'T LIKELY TO CONTINUE GAINING AGAINST THE MARK THIS WEEK HE SAID THE WEIGHT OF FURTHER SELLING OF MARKS FOR YEN WILL PRESSURE THE DOLLAR LOWER AGAINST THE YEN 9302090037 930209 TECHNOLOGY BRIEF BARR LABORATORIES INC WORK FORCE TO BE CUT 20 DUE TO PRODUCT SUSPENSION BARR LABORATORIES INC SAID IT WILL SLASH ITS WORK FORCE 20 AFTER A FEDERAL JUDGE LAST WEEK ORDERED THE GENERIC DRUG MAKER TO TEMPORARILY SUSPEND 24 PRODUCTS THE POMONA NY COMPANY SAID IT DOESN'T KNOW HOW LONG THE WORK FORCE REDUCTION WILL LAST BECAUSE IT IS DIFFICULT TO KNOW HOW LONG THE PRODUCTS WILL BE SUSPENDED US DISTRICT JUDGE ALFRED M WOLIN IN NEWARK NJ GAVE BARR ONE YEAR TO COMPLETE SOCALLED VALIDATION STUDIES OF THE SUSPENDED DRUGS TO ENSURE THAT THE COMPANY IS FOLLOWING CONSISTENT MANUFACTURING PRACTICES THE 24 PRODUCTS REPRESENT ABOUT 40 OF BARR'S ANNUAL SALES IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY BARR FELL 25 CENTS TO 875 AFTER TUMBLING 30 FRIDAY 9302090036 930209 REVIEW & OUTLOOK EDITORIAL DOWN THE DRAIN THAT OLD MOVIE TITLE MOSCOW ON THE HUDSON TAKES ON EVER NEW MEANING AS NEW YORKERS CONTEND WITH THE SOVIETSTYLE MINDSET OF THE CITY'S BUREAUCRATS JUDGES AND HOLIERTHANTHOU SPECIAL INTERESTS ORDINARY NEW YORKERS FOR EXAMPLE TRY TO GET THROUGH THE DAY WITHOUT LOOKING FURTIVELY AT BUSHES AND DANK CORNERS OR RACING INTO RESTAURANTS IN WHICH THEY ACTUALLY DON'T WISH TO EAT A PROPOSED PUBLIC TOILET WHICH WOULD HAVE BEEN ONE BRIGHT SPOT IN A BEATUP TOWN SEEMS FATED TO DISAPPEAR INTO THE KIND OF RED TAPE THAT REGULARLY KILLS GOOD IDEAS DRIVES UP COSTS AND EVENTUALLY DRIVES PEOPLE OUT OF TOWN MUCH ENTHUSIASM GREETED THE HANDFUL OF EXPERIMENTAL UNITS INCLUDING TWO SPECIALLY DESIGNED TOILETS FOR HANDICAPPED USERS WHICH WERE TEMPORARILY INSTALLED LAST YEAR BY THE FRENCH JCDECAUX FIRM BUT NEW YORKERS WON'T BE SEEING THESE PICTURESQUE KIOSKS ON THE STREETS ANYTIME SOON JCDECAUX WON'T PROVIDE LARGE UNITS ACCOMMODATING BOTH DISABLED AND ABLE USERS BECAUSE IN THEIR 10YEAR EXPERIENCE SUCH TOILETS ARE ABUSED BY ADDICTS AND PROSTITUTES EVEN SO THE CITY CAVING IN TO PRESSURE FROM PURPORTED ADVOCATES FOR THE DISABLED HAS SET UP A TWOTIER BIDDING PROCESS FAVORING PROVIDERS OF COMBOUNITS EVEN WERE JCDECAUX TO PREVAIL IN THIS SKEWED COMPETITION THE REVIEW PROCESS WILL PROBABLY SLUMBER INTO NEXT YEAR SO MUCH FOR CREATING A CLIMATE FAVORABLE TO FOREIGN COMPANIES SAN FRANCISCO BY THE WAY EXPECTS TO ERECT PUBLIC TOILETS IN A MATTER OF MONTHS BUT THIS IS NEW YORK WHERE IN ANOTHER FANTASTIC EPISODE OF BUREAUCRATIC ZEALOTRY A SWIMMING POOL IN A NEW HIGH SCHOOL WAS RULED UNFIT FOR USE BY THE PUBLICHEALTH INSPECTORS BECAUSE A TILE DEPTH MARKER ABBREVIATED FEET INTO FT THE POOL MUST REMAIN CLOSED PENDING EXCHANGE OF THE OFFENDING MARKER MEANHILE THE TOWN'S CIVIL ORDER CONTINUES SLIPPING INTO THE KIND OF DECLINE THAT WOULD HAVE HAD EDWARD GIBBON SCRIBBLING DEEP INTO THE NIGHT IN A MINDBOGGLING ASSAULT ON ALL STANDARDS OF SANITY AND SAFETY JUSTICE RICHARD RUTLEDGE OF THE STATE SUPREME COURT IN THE BOROUGH OF QUEENS SIGNED A RELEASE ORDER FOR LARRY HOGUE A K A THE WILD MAN OF THE UPPER WEST SIDE MR HOGUE A 48YEAROLD DELUSIONAL VAGRANT WITH A VIETNAM PENSION HE OFTEN SPENDS ON CRACK WANDERS ALONG UPPER BROADWAY YELLING OBSCENITIES SAVAGING ADULTS CHILDREN AND CARS EXPOSING HIMSELF BREAKING SHOP WINDOWS AND STARTING FIRES AFTER NINE ARRESTS SINCE 1972 MR HOGUE WAS INVOLUNTARILY COMMITTED TO A STATE MENTAL HOSPITAL RECENTLY LOCAL RESIDENTS BREATHED A SIGH OF RELIEF THE DANGEROUSLY CRAZY ELEMENT FESTERING AMONG THE HOMELESS POPULATION IS BECOMING EVER MORE EVIDENT TO NEW YORKERS BUT NOT TO JUDGE RUTLEDGE WHO IN HIS RELEASE ORDER RULED THAT MR HOGUE HAS AN ATTITUDE PROBLEM THIS NONSENSE HAS ONLY BEEN STAYED BY AN EMERGENCY APPEAL BY THE STATE ATTORNEY GENERAL IT DOES LEAVE ONE WONDERING JUST WHO ELSE OTHER THAN MR HOGUE NEEDS CONTINUING CARE IN ANOTHER PUBLICIZED INCIDENT A HOMELESS DRUG ADDICT WITH MENTAL PROBLEMS MURDERED AN 80YEAROLD WOMAN GOING TO CHURCH HE'D BEEN THROUGH THE SYSTEM MANY TIMES BUT MOST OF THE AGENCIES WERE UNAWARE OF HIS PROBLEMS BECAUSE OF PATIENTPRIVACY LAWS ANOTHER LAW SAID HE COULD HAVE BEEN HELD IF DIAGNOSED AS SCHIZOPHRENIC BUT A HALLUCINATING SUBSTANCE ABUSER HAS TO BE SET FREE THIS IS LIBERAL TOLERANCE RUN AMOK AND IT HAS PRODUCED A CLASS OF NEW YORKERS WHO RUN AMOK BUT DON'T SUGGEST THAT NEW YORKERS SIMPLY PUT THEMSELVES IN GOD'S HANDS THAT'S ILLEGAL WHEN A LOCAL SCHOOL BOARD INITIATED A MOMENT OF REFLECTION AFTER THE PLEDGE OF ALLEGIANCE THEY GOT THREATENED WITH ACTION BY THE NEW YORK CIVIL LIBERTIES UNION SCHOOL CHANCELLOR JOSEPH FERNANDEZ STILL ENERGETIC AFTER FIGHTING FOR THE CHILDREN OF THE RAINBOW CURRICULUM SAID HE WOULD INVESTIGATE A CITY RUN BY PEOPLE OBSESSED WITH POLITICALLY CORRECT TOILETS POOL MARKERS THE DANGERS OF REFLECTIVE SILENCE AND THE PROTECTION OF DANGEROUS LUNATICS MAY ITSELF HAVE LOST CONTACT WITH REALITY 9302090035 930209 BUSINESS BRIEF MEDIPLEX GROUP INC CLOSURE COSTS RESULT IN LOSS OF 39 MILLION IN 4TH PERIOD MEDIPLEX GROUP INC CITING A CHARGE RELATED TO THE CLOSING OF FACILITIES REPORTED A FOURTHQUARTER LOSS OF 39 MILLION OR 47 CENTS A SHARE THE WELLESLEY MASS COMPANY HAD NET INCOME OF 27 MILLION OR 33 CENTS A SHARE A YEAR EARLIER MEDIPLEX OPERATES 38 CENTERS THAT PROVIDE NURSING REHABILITATION AND PSYCHIATRIC CARE THE COMPANY CLOSED TWO TREATMENT FACILITIES IN THE QUARTER RESULTING IN A 10 MILLION PRETAX CHARGE WITHOUT THE CLOSURE COSTS MEDIPLEX SAID IT WOULD HAVE HAD NET OF 31 MILLION OR 37 CENTS A SHARE REVENUE INCREASED 32 TO 788 MILLION FROM 599 MILLION THE OPENING OF SIX NEW INPATIENT FACILITIES IN THE SECOND HALF AS WELL AS A NEW SURGERY DIVISION CONTRIBUTED TO THE RESULTS THE COMPANY SAID FOR 1992 MEDIPLEX REPORTED NET OF 51 MILLION OR 62 CENTS A SHARE AFTER THE 10 MILLION CHARGE REVENUE WAS 2735 MILLION NET IN 1991 WAS 102 MILLION OR 147 A SHARE INCLUDING A 2 MILLION TAXLOSS CARRYFORWARD BENEFIT REVENUE WAS 2366 MILLION 9302090034 930209 BUSINESS BRIEF REEBOK INTERNATIONAL LTD INVENTOR'S LAWSUIT CHARGES MISAPPROPRIATION OF CONCEPT A HOUSTON INVENTOR FILED SUIT IN US DISTRICT COURT IN BOSTON ALLEGING THAT REEBOK INTERNATIONAL LTD MISAPPROPRIATED THE INVENTOR'S CONCEPT TO DESIGN REEBOK'S PUMP ATHLETIC SHOE BYRON A DONZIS ALLEGES IN THE SUIT THAT REEBOK BREACHED A PROPRIETARY RIGHTS AGREEMENT AND MISAPPROPRIATED TRADE SECRETS AFTER MR DONZIS BROUGHT THE TECHNOLOGY TO THE STOUGHTON MASS MAKER OF ATHLETIC SHOES IN 1987 ALTHOUGH REEBOK ACKNOWLEDGES THAT IT MET WITH MR DENZIS THE COMPANY SAID ITS PUMP TECHNOLOGY WHICH USES AN INFLATABLE CHAMBER TO CUSHION THE FOOT WAS DEVELOPED WITHOUT USING ANY INFORMATION OBTAINED FROM MR DENZIS JOHN B DOUGLAS III REEBOK VICE PRESIDENT AND GENERAL COUNSEL SAID HIS CLAIMS ARE WITHOUT MERIT WE'RE CONFIDENT WE WILL PREVAIL IN THE LAWSUIT IN 1992 REEBOK SUCCESSFULLY SETTLED PATENT INFRINGEMENT LAWSUITS AGAINST SHOE MAKERS LA GEAR INC AND MERCURY INTERNATIONAL TRADING CO OVER THE USE OF THE PUMP TECHNOLOGY 9302090033 930209 BUSINESS BRIEF ELJER INDUSTRIES INC FORMER PARENT FIRM SEEKS JUDGMENT ON ITS LIABILITIES HOUSEHOLD INTERNATIONAL INC SAID IT IS SEEKING A DECLARATORY JUDGMENT THAT IT ISN'T LIABLE FOR DAMAGES SUFFERED BY ELJER INDUSTRIES INC AS A RESULT OF THAT COMPANY'S 1989 SPINOFF FROM HOUSEHOLD HOUSEHOLD A PROSPECT HEIGHTS ILL FINANCIAL SERVICES CONCERN FILED SUIT IN A DELAWARE CHANCERY COURT ON FRIDAY ALTHOUGH SETTLEMENT TALKS CONTINUED UNTIL YESTERDAY BEFORE BREAKING OFF ELJER A PLUMBING PRODUCTS MAKER BASED IN DALLAS SAID IT PLANS TO FILE SUIT SOON SEEKING DAMAGES FROM HOUSEHOLD NEITHER COMPANY WOULD DISCUSS THE ISSUES IN DISPUTE BUT SOME ELJER SHAREHOLDERS HAVE ARGUED THAT HOUSEHOLD SHOULD BEAR SOME LIABILITY FOR ENVIRONMENTAL AND LEGAL DISPUTES THAT ORIGINATED BEFORE THE SPINOFF THE SPINOFF LEFT ELJER WITH 136 MILLION IN DEBT WHICH IT WAS LATER FORCED TO RESTRUCTURE AFTER A DEFAULT ELJER ALSO PAID NEARLY 15 MILLION FOR ENVIRONMENTAL CLEANUPS AT PLANTS AND INCURRED SUBSTANTIAL LEGAL EXPENSES FOR A DEFECTIVE PLUMBING DEVICE ITS US BRASS UNIT MANUFACTURED BEFORE THE SPINOFF 9302090032 930209 BUSINESS BRIEF HECLA MINING CO FOURTHPERIOD LOSS WIDENS CLIMBING TO 504 MILLION HECLA MINING CO POSTED A GREATLY WIDENED FOURTHQUARTER LOSS DUE TO A DECLINE IN GOLD AND SILVER PRICES AND 42 MILLION IN WRITEDOWNS AND OTHER ONETIME CHARGES THE COEUR D'ALENE IDAHO MINING COMPANY POSTED A LOSS FOR THE QUARTER OF 504 MILLION OR 160 A SHARE COMPARED WITH A LOSS OF 19 MILLION OR SIX CENTS A SHARE IN THE YEAREARLIER PERIOD THE LOSS WAS FAR IN EXCESS OF ANALYSTS' PREDICTIONS WHICH RANGED FROM BREAKEVEN RESULTS TO A LOSS OF 10 CENTS A SHARE THE LOSS INCLUDES 31 MILLION TO WRITE DOWN INVESTMENTS IN SEVERAL MINING PROJECTS A PREVIOUSLY ANNOUNCED 11 MILLION ENVIRONMENTAL CLEANUP CHARGE AND AN ACCOUNTING CHANGE BEFORE THE ONETIME CHARGES THE LOSS WAS STILL A WIDER 73 MILLION OR 24 CENTS A SHARE REFLECTING A DROP IN GOLD PRICES TO THE LOWEST POINT IN 15 YEARS AND A DROP IN SILVER TO THE LOWEST POINT IN HALF A CENTURY REVENUE FOR THE PERIOD FELL TO 19 MILLION FROM 273 MILLION FOR THE YEAR THE LOSS WAS 493 MILLION OR 160 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 154 MILLION OR 51 CENTS A SHARE REVENUE FOR THE YEAR FELL TO 113 MILLION FROM 1198 MILLION 9302090031 930209 LAW LEGAL BEAT FEINBERG IS LAUNCHING A VENTURE TO RESOLVE MASS LIABILITY CASES BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL KENNETH R FEINBERG A LAWYER KNOWN FOR HIS ROLE IN SETTLING MASS LIABILITY CASES WILL LEAVE HIS LAW FIRM TO LAUNCH A VENTURE SPECIALIZING IN THE EARLY RESOLUTION OF COMPLEX LITIGATION MR FEINBERG'S NEW CONCERN IS A VARIATION ON A THEME THAT HE HAS PLAYED WHILE A PARTNER IN THE NEW YORK LAW FIRM OF KAYE SCHOLER FIERMAN HAYS & HANDLER THERE HE FREQUENTLY SERVED AS A COURTAPPOINTED NEGOTIATOR OR MEDIATOR TO HELP CRAFT SETTLEMENTS OF HUGE PRODUCTLIABILITY CASES NOW HE'S SEEKING TO REPRESENT COMPANIES DIRECTLY AND TO HELP THEM RESOLVE LARGE NUMBERS OF PRODUCTRELATED CLAIMS PREFERABLY BEFORE THEY BECOME MIRED IN LITIGATION I'M A VERY BIG BELIEVER THAT IN ALMOST EVERY CASE EARLY IS USUALLY BETTER AND IT'S NEVER TOO EARLY TO SETTLE SAYS THE 47YEAROLD MR FEINBERG HE SAYS HE WILL ENCOURAGE COMPANIES TO SETTLE DISPUTES BEFORE ISSUES GET CRYSTALLIZED BEFORE POSITIONS HARDEN AND BEFORE EMOTIONS RUN AMOK IT'S BETTER FOR EVERYBODY ESPECIALLY IF YOU CAN DO IT OUT OF THE COURTROOM WITHOUT EVEN A MEDIATOR MR FEINBERG'S VIEW OF EARLY SETTLEMENTS FLIES IN THE FACE OF THE TRADITIONAL LITIGATION STRATEGY THAT DEFENDANTS SHOULD FIGHT IN COURT AT LEAST LONG ENOUGH TO ESTABLISH WHETHER PLAINTIFFS HAVE SUSTAINABLE CLAIMS BACKED WITH SCIENTIFIC EVIDENCE BUT HE NOTES IN RECENT YEARS IT'S BECOME OBVIOUS THAT SOCIETY WANTS CLAIMANTS COMPENSATED THE LONGER YOU WAIT IN THE WORLD OF THE '90S YOU'RE GOING TO GET SLAMMED HE SAYS HIS VENTURE GOES BEYOND STANDARD MEDIATION AND ARBITRATION BECAUSE HE WILL TRY TO GET COMPANIES TO MAKE PLAINTIFFS OFFERS THEY CAN'T REFUSE AND THUS DO AWAY WITH THE NEED FOR ANY GOBETWEEN TO MEDIATE BETWEEN THE TWO SIDES HE ALSO HOPES TO SET UP WAYS FOR COMPANIES TO HANDLE FUTURE CLAIMS SO THAT THE SAME ISSUES DON'T HAVE TO BE LITIGATED AGAIN AND AGAIN IF THE APPROACH WORKS IT COULD SAVE BOTH SIDES HUGE SUMS IN LEGAL COSTS AND LEAD TO QUICKER DISTRIBUTION OF FUNDS TO PLAINTIFFS SOME LAWYERS AND JUDGES SUPPORT THE IDEA AS USEFUL AND INNOVATIVE BUT OTHERS ARE SKEPTICAL MARC S KLEIN A NEWARK NJ DEFENSE LAWYER WHO HAS WORKED ON CASES WITH MR FEINBERG CALLS THE IDEA NOBLE BUT ONLY A BANDAID ON THE PROBLEM OF HOW TO DEAL WITH COMPLEX CASES HE THINKS THAT BOTH PLAINTIFFS AND DEFENDANTS MAY SHY AWAY FROM MR FEINBERG'S ENTERPRISE WHICH WILL BE BASED IN NEW YORK AND WASHINGTON I DON'T SEE LARGE NUMBERS OF PEOPLE BEING WILLING TO PUT THEIR CASES IN HIS HANDS SAYS MR KLEIN ADDING THAT PLAINTIFFS MAY COMPLAIN IF THEY LATER REALIZE THEY COULD HAVE DONE BETTER IN COURT AN ADDITIONAL CONCERN FOR PLAINTIFFS IS THAT ANY ROUTE THAT'S HANDLED IN PRIVATE REDUCES THE OPPORTUNITY FOR PUBLICITY THAT MIGHT ALERT CONSUMERS TO PROBLEMS WITH PRODUCTS MR FEINBERG'S MOVE TO LEAVE KAYE SCHOLER COMES LESS THAN A YEAR AFTER THE FIRM AGREED TO PAY 41 MILLION TO SETTLE FEDERAL THRIFT REGULATORS' CHARGES THAT IT HELPED LINCOLN SAVINGS & LOAN ASSOCIATION CIRCUMVENT THRIFT REGULATIONS MR FEINBERG WHO WASN'T INVOLVED IN REPRESENTING LINCOLN SERVED AS A SPOKESMAN FOR THE LAW FIRM DURING THE CONTROVERSY HE SAYS HIS DEPARTURE IS UNRELATED TO KAYE SCHOLER'S LINCOLN PROBLEMS AT KAYE SCHOLER MR FEINBERG MADE A NAME FOR HIMSELF IN THE MASSLIABILITY ARENA WHEN HE WAS APPOINTED BY US DISTRICT JUDGE JACK B WEINSTEIN OF BROOKLYN NY TO HELP RESOLVE TWO STICKY CASES THAT HAD DEFIED PREVIOUS SETTLEMENT EFFORTS THE SUITS BROUGHT AGAINST MANUFACTURERS BY PEOPLE EXPOSED TO THE DEFOLIANT AGENT ORANGE AND BY NEW YORK ASBESTOS WORKERS HAD CLOGGED THE COURTS AND EATEN UP MILLIONS OF DOLLARS OF LEGAL FEES LAST YEAR MR FEINBERG REPRESENTED PFIZER INC IN A 215 MILLION SETTLEMENT OF 55000 CLAIMS BY HEARTVALVE RECIPIENTS BJORKSHILEY HEART VALVES MADE BY A PFIZER SUBSIDIARY HAVE BEEN FOUND TO FRACTURE UNDER THE TERMS OF THE CLASSACTION SETTLEMENT COMPENSATION TO PLAINTIFFS HINGES ON A VARIETY OF FACTORS INCLUDING THE AGE OF THE RECIPIENTS AND THE NUMBER OF HIS OR HER DEPENDENTS THE SETTLEMENT ALSO ALLOWS FUTURE CLAIMANTS WHO ARE CLASS MEMBERS TO APPLY FOR COMPENSATION CLASS MEMBERS WHO DO NOT LIKE THE SETTLEMENT FORMULA CAN CHOOSE TO MEDIATE OR EVEN GO TO COURT STANLEY M CHESLEY A CINCINNATI PLAINTIFFS LAWYER WHO NEGOTIATED WITH MR FEINBERG IN THE CASE CALLED THE SETTLEMENT WHICH DISPOSED OF MOST VALVE CASES VERY UNIQUE AND VERY CREATIVE RECENTLY DOW CORNING CORP HAS RETAINED MR FEINBERG TO HELP RESOLVE PENDING BREASTIMPLANT LITIGATION AND MR FEINBERG IS EXPECTED TO BRING THIS WORK WITH HIM TO HIS NEW FIRM PERRY WEITZ WHO REPRESENTS SOME BREASTIMPLANT PLAINTIFFS SAYS THAT EARLY SETTLEMENTS ARE OFTEN A BENEFIT TO SICK OR OUTOFWORK PLAINTIFFS WHO MIGHT GET MORE IF THEY CONTINUED TO LITIGATE IN COURT FOR A PLAINTIFF GETTING A DOLLAR TODAY MIGHT BE LIKE GETTING THREE DOLLARS SEVEN OR EIGHT YEARS FROM NOW NEW YORK SUPREME COURT JUSTICE HELEN FREEDMAN WHO HAS USED MR FEINBERG AS A NEUTRAL NEGOTIATOR IN ASBESTOS CASES SAYS IN THE AREA OF MASS TORTS THE COURTS NEED A LOT OF HELP MASSLIABILITY CASES SHE EXPLAINS FORCE JUDGES INTO A HEAVY MANAGEMENT ROLE AND TAX THE COURT SYSTEM PARISIAN ATTORNEYS AREN'T RUSHING TO ADVERTISE THEIR SERVICES DESPITE THE RECENT LIFTING OF RULES AGAINST LAWYER ADS THE CHANGES WERE ADOPTED LAST OCTOBER BY THE GOVERNING BODY OF THE 10000MEMBER PARIS BAR WE'VE ORGANIZED MEETINGS TO INFORM PEOPLE ABOUT THEIR OPPORTUNITY TO ADVERTISE UNDER THE NEW LAW SAID LAURENT CHAMBAZ OF THE GOVERNING BOARD KNOWN AS THE PARIS BAR COUNCIL THE GENERAL REACTION IS THAT'S NICE TO KNOW BUT WE'RE NOT QUITE READY YET PSYCHOLOGICALLY' HE SAID HE ESTIMATED THAT FEWER THAN 1 OF PARIS LAWYERS HAVE ADVERTISED IN POPULAR MEDIA SUCH AS NEWSPAPERS MAGAZINES OR BROADCAST STATIONS IN THE US LAWYER ADS HAVE BECOME INCREASINGLY COMMON SINCE 1977 WHEN THE SUPREME COURT STRUCK DOWN A STATE LAW RESTRICTING SUCH ADS THE NEW RULES IN PARIS ALLOW LAW FIRMS TO ADVERTISE THEIR FEES BUT COMPARATIVE PRICING IS PROHIBITED THE RULES ALSO REQUIRE ALL ADVERTISING TO BE CONDUCTED WITH DIGNITY DELICATENESS PROBITY AND DISCRETION OFFENDING ADS CAN BE ORDERED WITHDRAWN BY THE HEAD OF THE BAR COUNCIL WHO'S NEWS HARRIS WEINSTEIN FORMERLY CHIEF COUNSEL AT THE OFFICE OF THRIFT SUPERVISION HAS RETURNED TO THE WASHINGTON LAW FIRM OF COVINGTON & BURLING AS A PARTNER MR WEINSTEIN OVERSAW THRIFT REGULATORS' LAWSUITS AGAINST ACCOUNTANTS AND LAWYERS FOR CLAIMS STEMMING FROM THE FAILURE OF MAJOR SAVINGS AND LOANS SANDRA E MAYERSON JOINED CHICAGO LAW FIRM MCDERMOTT WILL & EMERY AS A PARTNER MS MAYERSON FORMERLY A PARTNER AT KELLEY DRYE & WARREN WILL BE CHAIRPERSON OF THE CORPORATERESTRUCTURING INSOLVENCY AND CREDITORS' RIGHTS GROUP IN THE LAW FIRM'S NEW YORK OFFICE 9302090030 930209 MARKETING BRIEF NOTED OLYMPICS VISA INTERNATIONAL INC OFFICIALLY SIGNED UP TO BE A WORLDWIDE SPONSOR OF THE OLYMPIC GAMES SPOKESMEN FOR THE ATLANTA OLYMPIC GAMES AND VISA SAID THE CREDIT CARD COMPANY WILL SPEND ABOUT 40 MILLION FOR THE SPONSORSHIP THE COMPANY JOINS JUST TWO OTHER WORLDWIDE SPONSORS SO FAR COCACOLA CO AND EASTMAN KODAK CO WHO'S NEWS MCGRAWHILL INC NAMED FREDERIC H LANDMANN VICE PRESIDENT AND GROUP PUBLISHER FOR ITS COMPUTER MAGAZINES INCLUING BYTE LAN TIMES AND UNIXWORLD MR LANDMANN 60 WAS SENIOR VICE PRESIDENT AT BOSTONBASED INTERNATIONAL DATA GROUP ALSO A PUBLISHER OF COMPUTER AND OTHER MAGAZINES 9302090029 930209 BUSINESS BRIEF TUCSON ELECTRIC POWER CO UTILITY WITHDRAWS REQUEST FOR INTERIM RATE INCREASE TUCSON ELECTRIC POWER CO WITHDREW ITS RECENT REQUEST FOR A 3 INTERIM RATE INCREASE THAT THE UTILITY HAD HOPED WOULD GO INTO EFFECT NEXT MONTH THE WITHDRAWAL CAME TWO WEEKS AFTER THE ARIZONA CORPORATION COMMISSION STAFF SAID IT OPPOSED THE INCREASE THE TUCSON UTILITY SAID IT WITHDREW ITS REQUEST TO REFOCUS THE COMMISSION ON ESTABLISHING HIGHER PERMANENT RATES LAST MONTH TUCSON ELECTRIC REQUESTED A 96 PERMANENT RATE INCREASE EFFECTIVE JAN 1 1994 THE COMPANY IS ALSO SEEKING RECOVERY OF ABOUT 4 MILLION IN DEFERRED FUEL COSTS FAVORABLE INTEREST RATES HAVE GIVEN TUCSON ELECTRIC A SUFFICIENT SAFETY MARGIN SO THAT WE CAN PROBABLY DO WITHOUT THE INTERIM INCREASE SAID IRA ADLER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE UTILITY MUST MAINTAIN CERTAIN FINANCIAL COVERAGE RATIOS UNDER ITS CREDIT PACTS MR ADLER SAID THE UTILITY MIGHT HAVE TO REVIVE ITS EMERGENCY REQUEST IF INTEREST RATES INCREASE OR IF THE WEATHER THIS SUMMER IS UNUSUALLY COOL DEPRESSING CUSTOMERS' DEMAND FOR ELECTRICITY A 1 INCREASE IN INTEREST RATES SWELLS THE COMPANY'S ANNUAL DEBTSERVICE EXPENSE BY MORE THAN 10 MILLION MR ADLER SAID 9302090028 930209 COMAIR POSTS TRAFFIC GAINS CINCINNATI COMAIR HOLDINGS INC SAID 179208 PASSENGERS BOARDED ITS REGIONAL AIRLINE IN JANUARY UP 11 FROM A YEAR AGO REVENUE PASSENGER MILES A MEASURE OF ONE PAYING PASSENGER FLOWN ONE MILE INCREASED 17 9302090027 930209 WHO'S NEWS CARAUSTAR INDUSTRIES INC CARAUSTAR INDUSTRIES INC ATLANTA JAMES L WALDEN 47 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CORPORATE VICE PRESIDENT OF THE CARTON DIVISION OF THIS MAKER OF RECYCLED PAPERBOARD MR WALDEN MOST RECENTLY SERVED AS VICE PRESIDENT OF THE MILL GROUP AT ROCKTENN CO A CLOSELY HELD PAPERBOARD MAKER IN ATLANTA 9302090026 930209 THE MOST DANGEROUS VEHICLE ON THE ROAD' BY WALTER OLSON JURY INTERVIEWS SUGGEST THAT LAST WEEK'S 105 MILLION VERDICT IN MOSELEY V GENERAL MOTORS WAS BASED IN PART ON ANGER AT GM'S UNREPENTANCE DESPITE LAWSUITS AND PRESS REPORTS FINGERING ITS 197387 TRUCKS AS UNSAFE THE COMPANY HAS REFUSED TO CONCEDE THEY ARE FLAWED AT ALL YESTERDAY GM CONTINUED ITS DEFIANCE BY COUNTERATTACKING CHARGING THAT CRASH TESTS DONE FOR AN NBC EXPOSE IN NOVEMBER WERE RIGGED BY ATTACHING INCENDIARY DEVICES TO THE TRUCKS SERIOUS THOUGH THESE CHARGES MIGHT SEEM SOME ARE ALREADY DISMISSING THEM AS GM'S DAMAGE CONTROL ARE THE TRUCKS IN FACT UNSAFE TRY TO IDENTIFY FROM THIS LIST THE GM TRUCK THAT CLARENCE DITLOW DIRECTOR OF THE CENTER FOR AUTO SAFETY TOLD NBC WAS A ROLLING FIREBOMB AND THAT NBC SUMMING UP HIS CHARGES DESCRIBED AS THE MOST DANGEROUS VEHICLE OUT THERE ON THE ROAD MANY ANALYSTS CRY FOUL AT COMPARING FULLSIZE PICKUPS TO SMALLER VEHICLES SINCE BIGGER IS KNOWN TO BE SAFER AS A GENERAL RULE IN THE LITIGATION CONTEXT THAT'S A STRANGE CAVIL IF AUTO MAKERS MAY FREELY OFFER SMALL TRUCKS TO THE PUBLIC WHY PUNISH THEM FOR OFFERING A LARGE TRUCK WITH A MUCH BETTER SAFETY RATING BUT IN ANY CASE CONSIDER B THE FULLSIZE FORD ENTRY WHICH WAS IN FACT THE MARKET'S CLOSEST COMPETITOR TO THE GM MODEL A DODGE'S FULLSIZE ENTRY DID NOT SCORE A HIT WITH CUSTOMERS WHATEVER ITS SAFETY VIRTUES FORD'S VERY THIN EDGE OVER THE GM MODEL MAY OR MAY NOT REPRESENT ANYTHING MORE THAN STATISTICAL NOISE DRIVER BIAS AND SO FORTH ANYONE WHO CHOOSES TO LIVE IN A WOOD RATHER THAN A BRICK HOUSE ACCEPTS A FAR WIDER ADVERSE SAFETY DIFFERENTIAL ONE POLICY OF COURSE WOULD BE TO PUNISH ANY FIRM THAT FELL BEHIND IN SAFETY COMPETITION AS DETERMINED YEARS LATER IN STATISTICAL RETROSPECT THAT WOULD ENSURE LITIGATORS A STEADY SUPPLY OF PROVENDER MUCH AS IF OUT ON THE VELD THEY WERE ENTITLED TO MUNCH ON WHICHEVER GAZELLES WERE AT THE REAR OF THE PACK THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY HAS ACKNOWLEDGED BY THE WAY THAT THE CURRENT SAFETY SCARE IS UNLIKELY TO ADD MATERIALLY TO THE PREMIUMS THAT GM TRUCK OWNERS PAY THE ACCIDENTS IN QUESTION ARE FAR TOO RARE WHEN TRIAL LAWYERS TOOK THEIR CASE TO THE GENERAL PUBLIC THROUGH THE MEDIA THEY STRESSED INTUITION RATHER THAN STATISTICS IT SEEMS THAT GM ALONE AMONG AUTO MAKERS HAD GONE ABOUT HANGING GAS TANKS ON THE SIDE OF ITS TRUCKS LIKE DARTBOARDS OUTSIDE THE PROTECTIVE FRAME RAIL THE TANKS WERE PLACED IN ABOUT AS STUPID A PLACE AS THEY CAN POSSIBLY BE PLACED ONE OF THE PLAINTIFF'S LAWYERS INFORMED NBC DATELINE IN A SIDE IMPACT OR A SIDESWIPE IMPACT PLAINTIFF'S EXPERT BYRON BLOCH EXPLAINED TO A RAPT NBC REPORTER THE FUEL TANK GETS CRUSHED THERE IS AN IMMEDIATE HOLOCAUST SO THE OVERALL NUMBERS DIDN'T MATTER GM'S DESIGN CHOICE HAD INVITED SPECIFIC AVOIDABLE DEATHS AND THE COMPANY MUST BE PUNISHED AS IT TURNS OUT NEITHER NBC NOR MOST OTHER NEWS OUTLETS BOTHERED TO REPORT THAT THE GM TRUCKS HAVE ACTUALLY SCORED BETTER OVER THE YEARS IN AVOIDING FATAL CRASHES WHEN IT COMES TO SIDEIMPACT COLLISIONS THEIR PRESUMED WEAK POINT SPECIFICALLY THE FULLSIZE GM TRUCKS DID SLIGHTLY BETTER 196 FATAL SIDEIMPACT CRASHES PER MILLION REGISTERED VEHICLE YEARS THAN THE COMPARABLE FORDS 200 AND ALMOST AS WELL AS THE DODGES 190 THOUGH THE THREE ARE BUNCHED SO CLOSELY TOGETHER THAT THE NUMBERS HARDLY MATTER HOW ON EARTH COULD THESE TRUCKS HAVE DONE BETTER IN SIDE CRASHES GIVEN THAT GM ITSELF CHOSE TO MOVE THE TANKS INBOARD IN A 1988 REDESIGN MAYBE THE NUMBERS ARE A FLUKE OR MAYBE IT'S THAT THE TRADEOFFS IN CAR SAFETY ARE NOT WELL UNDERSTOOD EVEN BY EXPERTS ANY POSSIBLE PLACEMENT OF THE FUEL TANK CAUSES SOME ACCIDENTS AND AVERTS OTHERS RESPECTABLE DESIGNERS HAVE TRIED EVERY GASTANK LOCATION AT ONE TIME OR ANOTHER FRONT AS IN OLD BEETLES REAR THE PINTO AND MANY OTHERS INSIDE THE PASSENGER COMPARTMENT OLDER TRUCKS OR UNDERNEATH NOW USUAL DESPITE THE HAZARDS OF FLYING GRAVEL SPARKS GROUNDSLAMS AND BROKEN AXLES ALL HAVE BEEN REJECTED AT OTHER TIMES AS UNSAFE MAYBE THE DISTINCTIVE NARROW FRAME OF THE GM TRUCKS POPULAR WITH CUSTOMERS BUT DAMNED BY THE PLAINTIFF'S LAWYERS BECAUSE IT REQUIRED THE GAS TANKS TO BE PLACED OUTBOARD OFFERS SOME SORT OF OBSCURE ADVANTAGE IN SIDE CRASHES IT'S HARD TO KNOW WE DO KNOW THAT ALTHOUGH YOU ARE APPARENTLY NO MORE LIKELY TO HAVE A FATAL SIDEIMPACT CRASH IN YOUR GM TRUCK IF YOU DO HAVE ONE IT IS SOMEWHAT MORE LIKELY TO INVOLVE A FIRE TO THAT EXTENT INTUITION BUT NOT THE TRIAL LAWYERS' CASE IS VINDICATED WE ALSO KNOW THAT IN GM TRUCKS AS IN ALL OTHER KINDS YOU ARE MUCH MORE LIKELY TO DIE IN A FRONTEND THAN IN A SIDE CRASH AND VASTLY MORE LIKELY TO DIE IN A CRASH WITHOUT FIRE THAN IN ONE WITH WHEN FIRE IS PRESENT IN A FATAL CRASH IT'S OFTEN IN THE SORT OF HIGHFORCE COLLISIONS THAT WOULD HAVE BEEN LETHAL IN ANY CASE THOUGH THE JURY VIEWED THE MOSELEY CASE AS AN EXCEPTION AND HARDLY A SURPRISE GIVEN THE STATISTICS IT TURNS OUT THAT THE GM GAS TANKS ARE NOT EXACTLY AS FRAGILE OR EXPOSED AS DDT EGGSHELLS AS VIEWERS MIGHT HAVE CONCLUDED FROM WATCHING THE NBC VIDEO OR TRIAL LAWYERS' SUMMATIONS THE TANKS NOT ONLY COMPLIED WITH BUT FAR EXCEEDED THE US GOVERNMENT'S SAFETY STANDARDS WHICH SPECIFICALLY ADDRESS THE DANGER OF GASTANK BREAKAGE IN SIDE CRASHES FULLY OBEYING THIS KIND OF LAW WILL NOT KEEP YOU FROM GETTING SUED AS KIMBA WOOD FOUND OUT LAST WEEK KNOWLEDGE OF THE LAW IS NO EXCUSE IN FACT IT TAKES ABOUT 4000 SIDEIMPACT CRASHES IN A GM PICKUP TO GET ONE FIRE WITH A MAJOR INJURY OR FATALITY WHICH MEANS THE SUPPOSED ROLLING FIREBOMBS MAY COMPARE FAVORABLY WITH HAYSTACKS OR MOUNDS OF FEATHERS AS OBJECTS TO CRASH INTO THE MORE DATA WE SEE ON THE SAFETY RECORD OF EXISTING CARS THE MORE DUBIOUS THE SAFETY SCARES OF THE PAST BEGIN TO LOOK THE AUDI 5000 AFFAIR IN WHICH ONE OF THE SAFEST CARS ON THE ROAD WAS WRONGLY ACCUSED OF SUDDEN ACCELERATION IS ONLY THE BEST KNOWN OF A WHOLE SERIES OF LAWSUITDRIVEN CAMPAIGNS THAT HAVE COLLAPSED IN DISGRACE AND REFUTATION REMARKABLY EVEN THE AFFAIR OF THE EXPLODING FORD PINTO UNIVERSALLY HAILED AS THE ACME OF PRODUCT LIABILITY SUCCESS IS STARTING TO LOOK LIKE HYPE IN A SUMMER 1991 RUTGERS LAW REVIEW ARTICLE UCLA LAW PROFESSOR GARY SCHWARTZ DEMOLISHES THE MYTH OF THE PINTO CASE ACTUAL DEATHS IN PINTO FIRES HAVE COME IN AT A KNOWN 27 NOT THE EXPECTED THOUSAND OR MORE MORE STARTLING MR SCHWARTZ SHOWS THAT EVERYONE'S PRECEIVED IDEAS ABOUT THE FABLED SMOKING GUN MEMO ARE FALSE THE ACTUAL MEMO DID NOT PERTAIN TO PINTOS OR EVEN FORD PRODUCTS BUT TO AMERICAN CARS IN GENERAL IT DEALT WITH ROLLOVERS NOT REAREND COLLISIONS IT DID NOT CONTEMPLATE THE MATTER OF TORT LIABILITY AT ALL LET ALONE ACCEPT IT AS CHEAPER THAN A DESIGN CHANGE IT ASSIGNED A VALUE TO HUMAN LIFE BECAUSE FEDERAL REGULATORS FOR WHOSE EYES IT WAS MEANT THEMSELVES EMPLOYED THAT CONCEPT IN THEIR DELIBERATIONS AND THE VALUE IT USED WAS ONE THAT THEY THE REGULATORS HAD SET FORTH IN DOCUMENTS IN RETROSPECT MR SCHWARTZ WRITES THE PINTO'S SAFETY RECORD APPEARS TO HAVE BEEN VERY TYPICAL OF ITS TIME AND CLASS FORD LIKE GM LOST A 100 MILLION VERDICT ALTHOUGH NOT MUCH OF THAT SURVIVED APPEAL THE SCANDAL OF PUNITIVE DAMAGES IS THAT THEY'RE HANDED DOWN WITH NONE OF THE DUEPROCESS PROTECTIONS WE'D ACCORD TARGETS CHARGED WITH GENUINE CRIMINAL WRONGDOING STRONG SCREENING OF UNRELIABLE EVIDENCE PROOF BEYOND A REASONABLE DOUBT PROSECUTION BY INDEPENDENT PROFESSIONALS RATHER THAN INTERESTED PARTIES AND SO FORTH UNTIL WE FURNISH SUCH PROTECTION PUNITIVE DAMAGES AS IN THE MOSELEY CASE WILL THREATEN TO MAKE A TRAVESTY OF JUSTICE MR OLSON OF THE MANHATTAN INSTITUTE IS THE AUTHOR OF THE LITIGATION EXPLOSION PLUME IN WALTER OLSON'S THE MOST DANGEROUS VEHICLE ON THE ROAD' FEB 9 THE INDEX OF FATAL CRASHES IS CALCULATED PER 10000 VEHICLE YEARS THIS INFORMATION WAS MISSTATED IN THE TABLE AND TEXT THE CHANGE DOES NOT AFFECT THE ANALYSIS OR THE COMPARISON BETWEEN VEHICLE MODELS 9302090025 930209 GM ACCUSES NBC OF RIGGING TEST CRASH OF PICKUP TRUCK ON DATELINE' PROGRAM BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT IN AN UNPRECEDENTED AND METICULOUSLY DETAILED ATTACK GENERAL MOTORS CORP SUED NBC CHARGING DEFAMATION AND PUBLICLY ACCUSED THE NETWORK OF RIGGING A TEST CRASH OF GM PICKUP TRUCKS ON ITS DATELINE NEWS PROGRAM THE AUTO MAKER TOOK ITS CASE TO THE PUBLIC IN A NEWS CONFERENCE CONDUCTED BY ITS CHIEF LAWYER THAT TOOK ON THE AIR OF A COURTROOM COMPLETE WITH DOZENS OF EXHIBITS THAT INCLUDED INDEPENDENT VIDEOTAPES OF NBC'S CRASH TEST AND PHOTOS OF MODELROCKET ENGINES THAT GM SAID IT REMOVED FROM THE TEST TRUCKS THE VIDEOTAPE CLEARLY SHOWED PLUMES OF SMOKE JETTING OUT OF THE BOTTOM OF THE PICKUP BEFORE IMPACT SUGGESTING THAT THE SUBSEQUENT FIRE MAY HAVE BEEN CAUSED NOT BY THE CRASH BUT BY THE TOYROCKET ENGINES WHICH WERE DETONATED BY REMOTE CONTROL GM NOW FACES A POISONED ENVIRONMENT SPAWNED BY THE CHEAP DISHONEST SENSATIONALISM OF NBC HAROLD J PEARCE GM'S EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL DECLARED HE SAID THE DEFAMATION SUIT IS THE FIRST EVER FILED BY THE AUTO MAKER GM'S LEGAL ACTION AND MR PEARCE'S TWOHOUR PRESENTATION BROADCAST TO NEWS OUTLETS AND GM EMPLOYEES AND DEALERS ACROSS THE COUNTRY CAME FOUR DAYS AFTER AN ATLANTA JURY FOUND THE AUTO MAKER NEGLIGENT IN THE DESIGN OF ITS TRUCKS AND AWARDED 1052 MILLION TO THE FAMILY OF A YOUTH WHO DIED IN ONE OF THE TRUCKS GM IS APPEALING THAT VERDICT AND IT ALSO FACES A SEPARATE INVESTIGATION OF THE TRUCKS BY FEDERAL HIGHWAY SAFETY AUTHORITIES WHILE NEITHER OF THOSE PROCEEDINGS IS DIRECTLY AFFECTED BY GM'S ACCUSATIONS AGAINST NBC THE COMPANY CLEARLY HOPES THAT MR PEARCE'S PRESENTATION WILL LET IT REGAIN THE INITIATIVE IN DEFENDING ITS CORPORATE REPUTATION NBC CALLED GM'S NEWS CONFERENCE AN ATTEMPT TO DIVERT ATTENTION FROM THE CENTRAL ISSUE THE SAFETY OF THE TRUCKS BUT MR PEARCE HOTLY DENIED THAT SAYING GM'S APPEAL WILL ADDRESS THE ATLANTA VERDICT HEADON MR PEARCE ALSO NOTED THAT THREE OTHER JURIES HAVE FOUND IN GM'S FAVOR IN SIMILAR CASES AND DEFENDED THE SAFETY OF THE PICKUPS ARE WE TO REDESIGN ALL OUR VEHICLES BASED ON A SINGLE JURY VERDICT MR PEARCE ASKED IN ADDITION MR PEARCE REITERATED WHAT GM HAS LONG CONTENDED THAT STATISTICAL EVIDENCE SHOWS THAT OVERALL ITS PICKUPS ARE AS SAFE AS COMPARABLE VEHICLES IN FACT BY SOME MEASURES THE VEHICLES ARE EVEN SAFER THAN COMPETING PICKUPS MR PEARCE SAID AND THEY ARE CERTAINLY SAFER THAN SMALLER CARS AND TRUCKS NONETHELESS WHEN THE FOCUS IS NARROWED TO FIERY SIDEIMPACT COLLISIONS THE KIND OF ACCIDENT THAT LED TO LAST WEEK'S VERDICT GM'S TRUCKS HAVE A MEASURABLY HIGHER FATALITY RATE THAN SIMILAR VEHICLES IT WAS THAT EVIDENCE COMBINED WITH TESTIMONY FROM A FORMER GM ENGINEER AND SOME INTERNAL GM DOCUMENTS THAT PROMPTED THE ATLANTA JURY TO FIND GM NEGLIGENT LAST WEEK MR PEARCE SAID GM IS SPEAKING OUT AGAINST NBC NOW BECAUSE IN THE WAKE OF THE ATLANTA VERDICT IT IS FREE OF A COURTIMPOSED GAG ORDER PREVENTING IT FROM DISCUSSING THE CASE HE ALSO SAID THAT GM DIDN'T SUSPECT UNTIL JAN 15 WHEN IT RECEIVED A TIP FROM A JOURNALIST IN INDIANA THAT NBC HAD RIGGED ITS CRASH TEST ON NOV 17 NBC AIRED A REPORT ON THE CONTROVERSY OVER SOME 47 MILLION 1973 TO 1987 MODEL PICKUPS STILL ON THE ROAD THOSE TRUCKS HAVE GASOLINE TANKS MOUNTED OUTSIDE THE TRUCKS' UNDERFRAME AND CRITICS CHARGE THAT THEY EXPLODE EASILY IN SIDEIMPACT ACCIDENTS AS PART OF ITS PROGRAM NBC AIRED A DEMONSTRATION SHOWING A PICKUP BURSTING INTO FLAMES AFTER BEING HIT FROM THE SIDE NBC A UNIT OF GENERAL ELECTRIC CO NOW CONCEDES THAT THE TRUCK WAS FITTED WITH A SPARKING DEVICE IN A LETTER TO GM FROM MICHAEL G GARTNER PRESIDENT OF NBC NEWS NBC ACKNOWLEDGED THAT FURTHER ASPECTS OF THE CRASH DEMONSTRATION SHOULD BE DESCRIBED TO OUR VIEWERS INCLUDING THE PRESENCE OF SPARKING DEVICES NBC WILL DISCUSS THE INFORMATION IN A FOLLOWUP DATELINE REPORT TODAY MR GARTNER SAID THE SPARKING DEVICE WAS INTENDED TO SIMULATE SPARKS WHICH COULD OCCUR IN A COLLISION MR GARTNER SAID HE SAID THE DEVICES WEREN'T DISCLOSED TO THE VIEWING PUBLIC BECAUSE NBC WAS TOLD BY EXPERTS THAT A HEADLIGHT FILAMENT CAUSED THE FIRE BUT NBC SAID NO ATTEMPT WAS MADE TO CONCEAL THE USE OF THE ROCKET ENGINES FROM MEMBERS OF THE PUBLIC WHO WERE AT THE SCENE THE SEGMENT THAT WAS BROADCAST ON DATELINE NBC' WAS FAIR AND ACCURATE NBC SAID INDEED IT WAS EYEWITNESS ACCOUNTS PHOTOGRAPHS AND VIDEOTAPE FROM MEMBERS OF THE PUBLIC WHO WERE AT THE INDIANA CRASH TEST CONDUCTED AT NBC'S BEHEST ON A RURAL ROAD NEAR INDIANAPOLIS LAST OCTOBER THAT ALLOWED GM TO PIECE TOGETHER WHAT HAPPENED AT THE NEWS CONFERENCE GM PRESENTED TRANSCRIPTS OF WITNESSES' TESTIMONY MR PEARCE CALLED NBC'S NEWS PROGRAM AN OUTRAGEOUS MISREPRESENTATION AND CONSCIOUS DECEPTION SPEAKING BY TELEPHONE FROM HIS FIRE STATION ANDREW S BURNETT CHIEF OF THE AVON IND FIRE DEPARTMENT CONFIRMED MUCH OF GM'S ACCOUNT OF THE CRASH TEST INCLUDING NBC'S USE OF ROCKET ENGINES ON THE TRUCK MR BURNETT WAS PRESENT WHEN THE TEST WAS CONDUCTED GM INITIALLY COMPLAINED IN A LETTER TO NBC LAST NOVEMBER THAT THE DATELINE PROGRAM WAS UNFAIR AND IT ASKED FOR TEST DATA AFTER NBC REFUSED TO SUPPLY THE TRUCKS MR PEARCE SAID GM FOUND THE TRUCKS IN A JUNKYARD NEAR THE CRASHTEST SITE ONE OF THE TRUCKS STILL HAD A SPENT TOYROCKET ENGINE TAPED TO THE CHASSIS HE SAID DURING ITS INVESTIGATION GM CONTACTED THE ORIGINAL OWNERS OF ONE OF THE TRUCKS WHO TOLD THE AUTO MAKER HE HAD LOST THE FACTORY'S GASOLINE CAP AND REPLACED IT WITH A JURYRIGGED ONE MR PEARCE SAID HAD A STANDARD GAS CAP BEEN USED THERE MIGHT NOT HAVE BEEN ANY FIRE MR PEARCE SAID GM ACCUSED NBC OF DEFAMING IT WITH ACTUAL MALICE BY LABELING THE EPISODE WAITING TO EXPLODE AND BY RIGGING THE TESTS HIRING BIASED CONSULTANTS AND USING A STAGED TRUCK FIRE TO PROMOTE THE SHOW GM SAID NBC SENSATIONALIZED THE SHOW AND AIRED IT DURING SWEEPS WEEK A KEY PERIOD FOR MEASURING A BROADCASTER'S AUDIENCE FOR ITS OWN FINANCIAL GAIN IN ADDITION GM CHARGED NBC WITH ATTEMPTING TO CONCEAL THE FACT THAT IT HAD RIGGED THE TRUCKS AND WITH CONSPIRING WITH THE INSTITUTE FOR SAFETY ANALYSIS AND ITS COOWNER BRUCE ENZ TO DEFAME GM FOR HIS PART MR ENZ SAID THE CRASHES WERE NOT TESTS ONLY DEMONSTRATIONS THE TAPE NBC AIRED IN NOVEMBER SHOWED A DRAMATIC FIRE IN THE CRASH TEST BYRON BLOCH A SAFETY CONSULTANT DESCRIBED THE KIND OF FIRE ON THE AIR AS A HOLOCAUST NBC'S REPORTER MICHELE GILLEN SAID THE CRASH HAD PUNCTURED A HOLE IN THE GASOLINE TANK BUT NBC'S TAPE OF THE FIRE LOOKED GREATLY DIFFERENT FROM A VIDEO TAKEN BY A FIREMAN ON THE SCENE THE FIREMAN'S VIDEOTAPE OBTAINED BY GM SHOWED THAT THE FIRE LASTED ONLY 15 SECONDS BURNING MOSTLY GRASS NEXT TO THE TRUCK GM OBTAINED ACCESS TO THE GASOLINE TANKS AND MR PEARCE SAID THAT THOROUGH ANALYSIS INCLUDING XRAY EXAMINATIONS REVEALED THE TANK WAS INTACT ON THE FIREMAN'S VIDEOTAPE FIREFIGHTERS WERE HEARD LAUGHING AT THE SMALL SIZE OF THE BLAZE WHICH THEY SAID HAD CLEARLY FAILED TO PROVE THAT THE TRUCKS EXPLODE ON IMPACT SAID ONE FIREMAN AT THE SCENE SO MUCH FOR THAT THEORY OSCAR SURIS CONTRIBUTED TO THIS ARTICLE 9302090023 930209 INTERNATIONAL RUSSIA SELLS OFF SHARES OF GUM SEVERAL PLANTS SPECIAL TO THE WALL STREET JOURNAL MOSCOW RUSSIA STEPPED UP THE PACE OF ITS AMBITIOUS PRIVATIZATION PROGRAM WITH SALES OF SHARES IN THE HISTORIC GUM DEPARTMENT STORE ON RED SQUARE AND FACTORIES IN THE INDUSTRIAL CITY OF VOLGOGRAD NEWSPAPER ADVERTISEMENTS FOR SHARES IN RUSSIA'S MOST FAMOUS STORE ATTRACTED INVESTORS HOLDING MORE THAN 100000 OF GOVERNMENTISSUED PRIVATIZATION VOUCHERS SAID YURI SAMONOV A MEMBER OF THE GUM BOARD THE RUSSIAN GOVERNMENT SAID IN JANUARY IT AIMS TO PRIVATIZE ALL SMALL AND MEDIUMSIZE ENTERPRISES BY THE END OF 1993 AS WELL AS 5000 LARGE ONES IN THE BIGGEST SALE OF STATE PROPERTY IN HISTORY UNTIL NOW IT HAS BEEN SELLING BUSINESSES ONE BY ONE BUT THE LATEST SALES CAME IN A GROUP CITIZENS ARE BEING ENCOURAGED TO USE THE VOUCHERS OF 10000 RUBLES EACH ABOUT 1750 ISSUED TO THEM TO BUY SHARES IN COMPANIES BEING PRIVATIZED NEARLY 6000 INDIVIDUAL INVESTORS OR INVESTMENT FUNDS EXPRESSED INTEREST IN BUYING SHARES OF GUM MR SAMONOV SAID ABOUT 155 OF THE STORE WAS OFFERED FOR SALE DURING THE PAST TWO WEEKS TWOTHIRDS OF ITS SHARES ALREADY ARE IN PRIVATE HANDS IN A CEREMONY AT THE MOSCOW STOCK EXCHANGE MR SAMONOV SAID INVESTORS WOULD RECEIVE SEVEN SHARES FOR EVERY VOUCHER THE VALUE OF THE SHARES WILL BE KNOWN WHEN GUM STOCK IS TRADED SOMETIME THIS SPRING SOME OF GUM'S PROFITS STILL COME FROM SALES OF RUSSIANMADE GOODS INCLUDING SHOES CLOTHES HOUSEHOLD WARES AND SOUVENIRS IN SHOPS THAT BORDER THREE AISLES ON TWO FLOORS BUT A GROWING AMOUNT OF THE LUCRATIVE FLOOR SPACE IN GUM IS BEING LEASED TO WESTERN COMPANIES INCLUDING THE MAKERS OF BOTANY 500 MENSWEAR L'OREAL COSMETICS AND LEGO TOYS MEANWHILE IN VOLGOGRAD FORMERLY STALINGRAD A BEER BREWERY A MARGARINE PRODUCER AN ALUMINUM ENTERPRISE AND A DEPARTMENT STORE WERE AMONG THE FACILITIES PUT ON AUCTION AT THE CITY'S BIGGEST PRIVATIZATION EFFORT SO FAR RUSSIAN TELEVISION REPORTED ALSO PUT UP FOR SALE WAS A MAJOR TRACTOR FACTORY WHICH PRODUCED TANKS DURING WORLD WAR II VOLGOGRAD CITY OFFICIALS HAVE ACTIVELY SOUGHT FOREIGN INVESTORS BUT THE CITY'S POOR TRANSPORTATION AND COMMUNICATION LINKS HAVE SO FAR DISCOURAGED A MAJOR INFLUX OF FOREIGN CAPITAL 9302090022 930209 WHAT'S NEWS WORLDWIDE TENSIONS ROSE AT THE WHITE HOUSE OVER THE ATTORNEY GENERAL'S POST CLINTON TRIED TO FIND A NEW NOMINEE FOR THE JOB AS HE THREATENED TO FIRE NEWS LEAKERS AND REJECTED WOMEN'S GROUPS' CRITICISM OF A DOUBLE STANDARD TOP AIDES WERE REMINDED TO MAKE SURE THEY OBEY IMMIGRATION AND TAX LAWS IN HIRING HOUSEHOLD HELP AND THE PRESIDENT SAID I THINK EVERYBODY WILL DO WHAT THEY'RE SUPPOSED TO DO HE IS EXPECTED TO NOMINATE AN ATTORNEY GENERAL THIS WEEK AT LEAST TWO FRONTRUNNERS FOR SUBCABINET POSTS APPARENTLY HAVE BEEN DERAILED BY CONCERN OVER THE SAME FACTORS THAT KEPT BOTH BAIRD AND WOOD FROM BECOMING ATTORNEY GENERAL WEINBERGER'S NOTES SHOW THE EXDEFENSE SECRETARY WAS AN EARLY WITNESS TO THE SAUDI ROLE IN THE IRANCONTRA AFFAIR AND WHITE HOUSE DECISIONS TO ASSIST ILLEGAL SHIPMENTS OF USMADE ARMS TO TEHRAN EXCERPTS MADE PUBLIC BY INDEPENDENT COUNSEL WALSH DETAIL THE CASE AGAINST WEINBERGER BEFORE BUSH PARDONED HIM CLINTON ABOLISHED THE 23YEAROLD COUNCIL ON ENVIRONMENTAL QUALITY AND REPLACED IT WITH A WHITE HOUSE OFFICE ON ENVIRONMENTAL POLICY THE CHANGE SHOULD GIVE VICE PRESIDENT GORE A WIDER ROLE IN FORMULATING ENVIRONMENTAL POLICY THE OFFICE WILL BE HEADED BY A FORMER SENATE STAFF AIDE TO GORE THE CLINTON ADMINISTRATION WANTS TO ENLIST RUSSIA'S SUPPORT FOR A NEW DIPLOMATIC INITIATIVE TO SETTLE THE CONFLICT IN BOSNIA THE WHITE HOUSE HAS DECIDED TO BECOME MORE ACTIVE IN BOSNIARELATED DIPLOMACY AFTER FAILING TO RALLY SUPPORT FROM THE PENTAGON OR EUROPEAN ALLIES FOR STRONGER MILITARY ACTION FIGHTING INTENSIFIED IN BOSNIA AS CROAT MUSLIM AND SERB FORCES FOUGHT TO EXTEND TERRITORIAL GAINS BEFORE THE POSSIBLE IMPOSITION OF AN INTERNATIONAL PEACE PLAN MEDIATORS IN NEW YORK PREPARED FOR A BRIEFING OF THE UN SECURITY COUNCIL ON THE PLAN WHICH WOULD DIVIDE THE FORMER YUGOSLAV REPUBLIC INTO 10 SEMIAUTONOMOUS PROVINCES SOUTH AFRICAN OFFICIALS REACHED AN ACCORD WITH THE ZULUBASED INKATHA PARTY FOR A MEETING NEXT WEEK TO PLAN A CONFERENCE ON RESUMING ALLPARTY DEMOCRACY TALKS THE ACCORD APPARENTLY HEALED A RIFT THAT DEVELOPED WHEN INKATHA LEADER BUTHELEZI CALLED THE GOVERNMENT RACIST AND THE GOVERNMENT SAID INKATHA ADVISERS WERE IGNORANT THE US HAS LAUNCHED A DIPLOMATIC OFFENSIVE TO DEFUSE THE DISPUTE OVER PALESTINIANS EXPELLED BY ISRAEL AHEAD OF SECRETARY OF STATE CHRISTOPHER'S MIDEAST VISIT NEXT WEEK US OFFICIALS MET IN WASHINGTON WITH A PALESTINIAN DELEGATION AND ISRAELI REPRESENTATIVES WERE EXPECTED FOR TALKS TODAY PALESTINIAN DEPORTEES SAID THEY WOULD REFUSE TO ALLOW THE EVACUATION OF ANY MORE SICK AND WOUNDED TO ISRAEL THE DEPORTEES STRANDED IN SOUTH LEBANON FOR SEVEN WEEKS SAID ALL 396 OF THEM WOULD REMAIN AT THEIR TENT CAMP UNTIL ISRAEL WAS FORCED TO ALLOW THE ENTIRE GROUP TO RETURN A GUNMAN IN LOS ANGELES SHOT AND CRITICALLY WOUNDED THREE HOSPITAL EMERGENCY ROOM DOCTORS AND HELD TWO WOMEN HOSTAGE FOR NEARLY FIVE HOURS BEFORE SURRENDERING TO POLICE OFFICIALS SAID THE MAN SHOT THE DOCTORS AT POINTBLANK RANGE AFTER WALKING INTO LOS ANGELES COUNTYUSC MEDICAL CENTER AND YELLING FOR PAIN MEDICINE US TROOPS SEIZED RIFLES MACHINE GUNS AND OTHER WEAPONS FROM A SOMALI CLAN LEADER COL OMAR JESS AFTER STOPPING HIM AT A ROADBLOCK NORTH OF MOGADISHU ACCORDING TO A SPOKESMAN FOR THE COALITION FORCES IN SOMALIA JESS WHO WAS BRIEFLY DETAINED IS AN ALLY OF A KEY SOMALI WARLORD AIDID KOHL TRIED TO DEFUSE A POTENTIAL DISPUTE WITH THE US BY PLEDGING TO CONSULT WITH NATO BEFORE TAKING STEPS TO CUT BACK GERMANY'S MILITARY FORCES MEANWHILE THE GERMAN CHANCELLOR AND HIS DEFENSE MINISTER DISAGREED OVER TROOPTRIMMING PROPOSALS AND A SOLDIERS' GROUP SAID THE CHANCELLOR HAS THROWN MILITARY PLANNING INTO CHAOS REBEL ROCKETS AND MORTAR ROUNDS HIT KABUL'S PRESIDENTIAL COMPOUND EMBASSIES AND RESIDENCES AND GOVERNMENT FORCES FOUGHT BACK WITH ARTILLERY AND WARPLANES AFGHANISTAN'S STATE RADIO SAID AT LEAST 54 PEOPLE DIED IN THE FIGHTING AN IRANIAN AIRLINER COLLIDED WITH AN AIR FORCE JET AFTER TAKEOFF FROM TEHRAN'S MAIN AIRPORT AND EXPLODED KILLING ALL 132 PEOPLE ON BOARD THE PASSENGER PLANE WAS BOUND FOR THE SHIITE MUSLIM HOLY CITY OF MASHHAD 9302090021 930209 RAWSTEEL PRODUCTION ROSE 17 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 17 LAST WEEK TO 1791000 TONS FROM 1761000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 45 FROM THE 1714000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 815 OF ITS CAPABILITY LAST WEEK COMPARED WITH 801 THE PREVIOUS WEEK AND 779 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9302090020 930209 CREDIT MARKETS PRICES OF TREASURY ISSUES DECLINE AS REFUNDING AND RECENT RALLY SPARK A DEGREE OF CAUTION BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS DROPPED MORE THAN 3/8 POINT IN SOME CASES YESTERDAY AS INVESTORS PREPARED FOR THE TREASURY'S 355 BILLION QUARTERLY REFUNDING SCHEDULED TO BEGIN TODAY TRADERS SAID THAT VOLUME WAS LIGHT YESTERDAY AS MOST PLAYERS CHOSE TO STICK TO THE SIDELINES IN ADVANCE OF THE DELUGE OF NEW SUPPLY THE TREASURY IS SCHEDULED TO AUCTION 155 BILLION IN THREEYEAR NOTES TODAY 1075 BILLION IN 10YEAR NOTES TOMORROW AND 925 BILLION IN 30YEAR BONDS THURSDAY THE BENCHMARK 30YEAR BOND DROPPED MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH 1000 FACE VALUE TO 105 5/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 719 FROM 716 THE PRICE LEVELS REACHED IN THE RECENT RALLY APPEARED TO HAVE GIVEN SOME DEALERS ON WALL STREET A TEMPORARY FEAR OF HEIGHTS AND THEY WERE MORE THAN WILLING TO TRY AND MARK SECURITIES DOWN TO MAKE THEM MORE PALATABLE TO INVESTORS THE MARKET CAME INTO THE REFUNDING WEEK IN WHAT COULD BE REGARDED AS AN OVERBOUGHT CONDITION SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC THE EARLY ASSESSMENT WAS THAT THOSE LOWER YIELD LEVELS THAT WE REACHED LAST WEEK LEFT SOMETHING TO BE DESIRED AND THERE WAS A FEELING WE MAY HAVE TO CREEP UP IN YIELD TO PROMPT MORE BUYING INTEREST BUT MANY MONEY MANAGERS AND MARKET ANALYSTS STILL BELIEVE THERE IS HOPE FOR THE 30YEAR BOND TO REACH A YIELD OF 7 BEFORE TURNING BACK UP AGAIN ACCORDING TO ALEX POWERS A PORTFOLIO MANAGER AT CHASE PRIVATE BANK A UNIT OF CHASE MANHATTAN BANK THE RALLY OF THE PAST FEW WEEKS HAS BEEN REALLY STRONG THE DOWN DAYS HAVE BEEN WEAKER THAN THE STRONG DAYS WHICH MEANS THAT PEOPLE ARE USING PRICE DIPS AS BUYING OPPORTUNITIES AND THE SELLERS AREN'T MATERIALIZING YESTERDAY FOR EXAMPLE TRADERS SAID THAT VOLUME WAS LIGHT ENOUGH SO THAT WHAT SELLING THAT DID OCCUR MAY HAVE HAD AN EXAGGERATED EFFECT ON BOND PRICES MUCH OF THAT HOPE FOR STILLLOWER YIELDS IS PREDICATED ON THE OPTIMISTIC SENTIMENT DOMINATING THE BOND MARKETS RECENTLY REGARDING PRESIDENT CLINTON'S ECONOMIC POLICY MANY BOND INVESTORS ARE HOPEFUL THAT MR CLINTON MAY FULFILL CAMPAIGN PROMISES TO SLASH THE BUDGET DEFICIT AND THEY SAY THAT A SERIES OF TRIAL BALLOONS FLOATED BY ADMINISTRATION OFFICIALS SEEM TO INDICATE THAT HE IS SERIOUS TALK OF REDUCING THE SUPPLY OF 30YEAR TREASURY BONDS AUCTIONED EACH QUARTER BEYOND THE 1 BILLION CUT FOR THIS WEEK'S AUCTION HAS ALSO CONTRIBUTED TO THE POSITIVE SENTIMENT AND NEWS OF LOW INFLATION SAY ECONOMISTS IS AN IMPORTANT UNDERLYING SUPPORT AS WELL YESTERDAY THE ARGUMENT FOR LOWER LONGTERM YIELDS GAINED ANOTHER SUPPORTER IN THE FORM OF DAVID SCHULMAN AN EQUITY STRATEGIST AT SALOMON BROTHERS INC FOR THE FIRST TIME SINCE AUGUST MR SCHULMAN HAS MADE A CHANGE IN HIS RECOMMENDED ALLOCATION OF ASSETS TO INCREASE HOLDINGS IN BONDS TO 40 FROM 35 OF A TOTAL MODEL PORTFOLIO OF STOCKS AND CASH TODAY I DECIDED THAT CLINTON IS GOING TO BE MORE WORRIED ABOUT THE DEFICIT THAN THE NEARTERM ECONOMY SAID MR SCHULMAN HE'S BEEN MAKING MORE NOISE ABOUT THE DEFICIT PACKAGE ACCORDING TO MR SCHULMAN THE KEY TO THE MARKETS IS INFLATION WHICH HIT A SIXYEAR LOW IN 1992 WITH THE CONSUMER PRICE INDEX FALLING TO 29 IT'S HARD TO HOLD LONGTERM BONDS WHEN THEY'RE AT THIS PRICE LEVEL OBSERVED MR SCHULMAN BUT I DON'T THINK PEOPLE ARE RUSHING TO SELL THEM BUT ALL THE OPTIMISM COULD DISAPPEAR DEPENDING ON HOW MR CLINTON CHOOSES TO FULFILL HIS TWIN PROMISES OF SPURRING JOB GROWTH WHILE PARING THE FEDERAL BUDGET DEFICIT BOND MARKET INVESTORS ARE ANXIOUSLY AWAITING HIS FEB 17 STATE OF THE UNION ADDRESS SOME WHO ARE WATCHING THE BOND MARKETS ARE WORRIED WHAT HAS FUELED THE MARKET RALLY HAS BEEN THE DEFICIT REDUCTION TALK SAID DONALD FINE CHIEF MARKET ANALYST FOR CHASE SECURITIES INC SO FAR ALL WE'VE HEARD IS TALK MR FINE ARGUED THAT THE CURRENT RATE OF ECONOMIC GROWTH WOULD NOT BE ENOUGH TO SUSTAIN THE KIND OF JOB GROWTH THAT MR CLINTON HAS BEEN TALKING ABOUT MR CLINTON MIGHT NEED TO LIFT GROWTH TO GET MORE EMPLOYMENT THAT'S ALWAYS BEEN THE TRADEOFF INFLATION FOR EMPLOYMENT BUT THE MARKET NOW CLEARLY DOESN'T BELIEVE IT WALL STREET IS HOPING THAT INVESTORS WILL CONTINUE ON THE BUYING BINGE THAT HAS PROPELLED THE MARKET HIGHER TRADERS ARE ESPECIALLY NERVOUS BECAUSE THE RALLY HAS BEEN BUILT LARGELY ON EXPECTATIONS FOR A CREDIBLE DEFICIT REDUCTION PACKAGE ADDING TO THE NERVOUSNESS IS THE RECENT SPATE OF ECONOMIC DATA THAT HAVE BEEN SHOWING A BETTER PACE OF GROWTH CLEARLY WE ARE SEEING SIGNS OF ACCELERATING GROWTH SAID STEVE NOTHERN A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES CO IN BOSTON BUT BUYERS HAVE BEEN ALL BUT IGNORING THE DATA THE BOND MARKET HAS NOT BEEN TRADING OFF OF FUNDAMENTALS SINCE LABOR DAY OF LAST YEAR MR NOTHERN SAID RATHER THE FOCUS HAS BEEN AND CONTINUES TO BE ON THE DIRECTION OF FISCAL POLICY THE KEY THING IS THE ISSUE OF ARE WE GOING TO GET MEANINGFUL DEFICIT REDUCTION OR NOT' MR NOTHERN SAID SO WITH THE MARKET AT HISTORIC HIGHS AND THE ECONOMIC DATA SHOWING SIGNS OF GROWTH MR CLINTON'S STATE OF THE UNION ADDRESS WILL BE CARRYING A GREAT DEAL OF WEIGHT IN THE TREASURY MARKET THERE IS A LOT RIDING ON A SIGNIFICANT BUDGET REDUCTION SAID JERRY ZUKWOSKI AN ECONOMIST AT PAINEWEBBER INC MEANWHILE THE TREASURY SOLD 2322 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION DOWN SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 294 FOR A COUPONEQUIVALENT YIELD OF 300 COMPARED WITH 297 AND 304 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 309 FOR A COUPONEQUIVALENT YIELD OF 318 COMPARED WITH 310 AND 319 AT LAST WEEK'S AUCTION IN LATE WHENISSUED TRADING YESTERDAY THE THREEYEAR NOTE TO BE AUCTIONED TODAY WAS YIELDING 470 UP FROM 462 ON FRIDAY THE 10YEAR NOTE TO BE AUCTIONED TOMORROW WAS YIELDING 632 UP FROM 626 AND THE 30YEAR BOND TO BE SOLD THURSDAY WAS YIELDING 715 UP FROM 712 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED FEB 11 THE 13WEEK BILLS MATURE MAY 13 1993 AND THE 26WEEK BILLS MATURE AUG 12 1993 THE LOWEST MORTGAGE RATES IN 20 YEARS ARE BEING FELT IN THE MORTGAGEBACKED SECURITIES MARKET AS BANKERS FLUSH WITH NEWLY ORIGINATED LOANS BEGIN TO SELL BLOCKS OF SECURITIES IN THE SECONDARY MARKET THE FRESH SUPPLY COMING AT A TIME WHEN INVESTORS ARE SHYING AWAY FROM ALMOST ALL TYPES OF MORTGAGEBACKED SECURITIES PUT PRESSURE ON THE PRICES OF CURRENT COUPON AGENCY PASSTHROUGHS TRADERS SAID PRICES OF CURRENT COUPON PASSTHROUGHS FELL MARKEDLY THROUGHOUT THE SESSION AT TIMES DROPPING AS MUCH AS 5/32 MORE IN PRICE THAN THE BENCHMARK 10YEAR TREASURY NOTE THE 10YEAR TREASURY NOTE DROPPED MORE THAN 3/8 POINT YESTERDAY TO 100 1/32 TO YIELD 636 UP FROM 630 ON FRIDAY IN LATE SECONDARY TRADING 75 ISSUES FROM THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION FOR FEBRUARY DELIVERY DROPPED MORE THAN 1/2 POINT TO 102 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES ENDED AT 101 30/32 DOWN MORE THAN 3/8 POINT WHILE FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES ENDED AT 101 23/32 ALSO DOWN MORE THAN 3/8 POINT CURRENT COUPON PASSTHROUGHS ARE BACKED BY CURRENT MORTGAGE LOAN PRODUCTION AND SO ARE MOST AFFECTED BY ANY RUSH OF NEW SUPPLY THE PRICE DROPS MAY HAVE BEEN AGGRAVATED YESTERDAY BECAUSE THERE WAS LITTLE SECONDARY TRADING TAKING PLACE TRADERS SAID FREDDIE MAC REPORTED ITS AVERAGE WEEKLY 30YEAR FIXED MORTGAGE RATE FELL TO 780 LAST WEEK COMPARED TO 834 AT THE END OF DECEMBER AND THE LOWEST RATE SINCE JUNE 1973 NOTED JOHN TIERNEY A MORTGAGE ANALYST AT LEHMAN BROTHERS INC THAT'S GETTING TO THE POINT WHERE IT MAKES SENSE FOR A LOT MORE PEOPLE TO START REFINANCING AGAIN MR TIERNEY SAID CORPORATE MARKET ACTIVITY WAS LACKLUSTER AS ATTENTION WAS FOCUSED ON THE COMING TREASURY AUCTIONS PRICES OF HIGHGRADE CORPORATES ENDED 1/8 TO 1/4 POINT LOWER WHILE JUNK BONDS FIRMED BY 1/8 THE PRIMARY MARKET WAS NO MORE ACTIVE WITH ELECTRIC UTILITY CAROLINA POWER & LIGHT CO FLOATING YESTERDAY'S LONE DEAL TRADITIONALLY MOST COMPANIES POSTPONE DEBT RAISING UNTIL AFTER THE AUCTIONS THE NONCALLABLE ISSUE IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP MEANWHILE PRICES OF A NUMBER OF RECENTLY PRICED JUNK BONDS CONTINUED TO SOAR SPURRED IN PART BY INVESTORS' STRONG APPETITE FOR YIELDRICH PAPER KAISER ALUMINUM & CHEMICAL CORP'S SENIOR SUBORDINATED NOTES DUE 2003 WHICH WERE PRICED IN LATE JANUARY AT PAR OR 100 TO YIELD 1275 WERE QUOTED AT 103 TO YIELD 122 TRADERS SAID PRICES OF MUNICIPAL BONDS ENDED GENERALLY 1/8 TO 1/2 POINT HIGHER BUT SCATTERED ISSUES POSTED EVEN BIGGER GAINS SOME MUNI SPECIALISTS SAY THE MARKET IS STILL DRAWING STRENGTH FROM PRESIDENT CLINTON'S PLAN TO RAISE THE TOP FEDERAL INCOME TAX RATE FROM THE CURRENT 31 TO POSSIBLY MORE THAN THE 36 THAT HE PROPOSED DURING HIS ELECTION CAMPAIGN IN SECONDARY TRADING PHILADELPHIA'S 6375 GAS WORKS REVENUE REFUNDING BONDS OF 2014 FINISHED 1/2 POINT HIGHER AT 99 3/4 TO YIELD 638 THERE WASN'T MUCH ACTION IN THE PRIMARY MARKET YESTERDAY BUT ONE LARGE ISSUE WAS ANNOUNCED THE MASSACHUSETTS HOUSING FINANCE AGENCY'S 6381 MILLION ISSUE OF 1993 SERIES AD HOUSING PROJECT REFUNDING AND REVENUE BONDS WAS BROUGHT TO THE MARKET BY A GOLDMAN SACHS & CO GROUP FOLLOWING A REPRICING AT WHICH ONE YIELD WAS LOWERED BY 002 PERCENTAGE POINTS AND SOME OTHER YIELDS WERE RAISED BY AS MUCH AS 01 PERCENTAGE POINT YIELDS RANGE FROM 340 IN 1994 TO 638 IN 2021 THE INITIAL SCALE OF YIELDS WAS 335 TO 640 THE OFFERING IS MAINLY COMPRISED OF 6229 MILLION OF SERIES A BONDS ABBY SCHULTZ CONTRIBUTED TO THIS ARTICLE 9302090019 930209 WHO'S NEWS MATTEL INC MATTEL INC EL SEGUNDO CALIF JAMES A ESKRIDGE AND EDWARD N NEY WERE ELECTED DIRECTORS OF THIS TOY AND HOBBYPRODUCTS MAKER INCREASING THE BOARD TO 11 MEMBERS MR ESKRIDGE 50 YEARS OLD IS EXECUTIVE VICE PRESIDENT CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF THE COMPANY MR NEY 67 IS CHAIRMAN OF THE BOARD OF ADVISERS OF BURSON MARSTELLER HE SERVED AS US AMBASSADOR TO CANADA FROM 1989 TO 1992 9302090018 930209 LETTERS TO THE EDITOR SENSITIVITY MANDATES INSENSITIVE TO BUSINESS THE CONCLUSION OF WALTER OLSON'S JAN 20 RULE OF LAW COLUMN WHEN SENSITIVITY TRAINING IS THE LAW OPED PAGE IS CORRECT IN THAT GOVERNMENT MANDATES ARE A STRAIN ON BUSINESS BUT IT IS INCORRECT IN THAT WE AT THE CONNECTICUT BUSINESS AND INDUSTRY ASSOCIATION CBIA REFERRED TO IN THE COLUMN AS CONNECTICUT'S MAIN BUSINESS ASSOCIATION ADVOCATED STATE LEGISLATION LAST YEAR THAT REQUIRES MANAGERS OF COMPANIES EMPLOYING 50 OR MORE PEOPLE TO HAVE SENSITIVITY TRAINING CBIA HAS STEADFASTLY OPPOSED ANY LEGISLATIVE MANDATES SUCH MANDATES INCREASE THE COST OF DOING BUSINESS ADDING MORE TO AN ALREADY OVERBURDENED BUSINESS CLIMATE WILL ONLY INCREASE THE INABILITY OF COMPANIES TO EXPAND IN OR RELOCATE TO CONNECTICUT AND THEREBY PROVIDE JOBS FOR OUR STATE'S RESIDENTS AFTER DETERMINING THAT THE STRENGTH OF BIPARTISAN SUPPORT ENSURED THE LEGISLATION'S PASSAGE IN THE GENERAL ASSEMBLY CBIA WORKED TO MAKE SURE THE VERSION THAT WAS APPROVED WAS THE LEAST ONEROUS FOR EMPLOYERS WE SUCCESSFULLY NEGOTIATED THE ELIMINATION OF A REQUIREMENT THAT EMPLOYERS ANNUALLY NOTIFY THEIR EMPLOYEES ABOUT THE ILLEGALITY OF SEXUAL HARASSMENT AND THE REMEDIES AVAILABLE WE ALSO SUCCESSFULLY INCREASED THE THRESHOLD FOR MANDATED TRAINING FROM COMPANIES WITH 11 EMPLOYEES TO COMPANIES OF 50 EMPLOYEES OR MORE AND WE WERE ABLE TO SAVE CONNECTICUT EMPLOYERS THE EXPENSE OF RETRAINING EMPLOYEES BY NEGOTIATING A PROVISION THAT COMPANIES THAT PROVIDED TRAINING SINCE OCT 1 1991 WERE GRANDFATHERED INTO THE LAW WE UNDERSTAND THE SENTIMENT BEHIND THE LEGISLATION SEXUAL HARASSMENT SHOULDN'T BE TOLERATED NEVERTHELESS VOLUNTARY METHODS OF CHANGING ATTITUDES HAVE ALWAYS PROVED MORE EFFECTIVE 9302090017 930209 MORNINGSTAR GROUP AGREES TO BUY FIRM FROM UNIT OF NESTLE DALLAS MORNINGSTAR GROUP INC A COMPANY ACQUIRED AND THEN TAKEN PUBLIC BY LEVERAGED TAKEOVER SPECIALISTS HICKS MUSE & CO AGREED TO BUY FAVORITE FOODS FROM NESTLE USA TERMS WEREN'T DISCLOSED NESTLE USA IS A UNIT OF SWISS FOOD COMPANY NESTLE SA THE ACQUISITION IS THE FIRST FOR MORNINGSTAR AND STRENGTHENS THE SPECIALTY DAIRY PRODUCTS COMPANY IN THE YOGURT BUSINESS MORNINGSTAR'S CHIEF FINANCIAL OFFICER TRACY L NOLL SAID FAVORITE FOODS A SPECIALTY DAIRY PRODUCTS CONCERN BASED IN FULLERTON CALIF HAD 1992 SALES OF 44 MILLION AND IS PART OF NESTLE'S CARNATION CO MORNINGSTAR MAKES NONDAIRY CREAMERS SOUR CREAM AND EGG AND MILK SUBSTITUTES IN THE THIRD QUARTER ENDED SEPT 30 MORNINGSTAR EARNED 16 MILLION OR 10 CENTS A SHARE ON SALES OF 87 MILLION FOR THE TRAILING 12 MONTHS TO SEPT 30 THE COMPANY REPORTED SALES FROM CONTINUING OPERATIONS OF 343 MILLION MORNINGSTAR ONCE PART OF SOUTHLAND CORP TOOK ON A MOUNTAIN OF DEBT IN A 1988 LEVERAGED BUYOUT AND STRUGGLED WITH 35 MILLION IN ANNUAL INTEREST EXPENSE AND MOUNTING LOSSES IN MARCH 1991 HICKS MUSE PAID 30 MILLION FOR AN 80 EQUITY STAKE LAST YEAR MORNINGSTAR SOLD FIVE MILLION NEW SHARES OR 35 OF THE COMPANY FOR 11 A SHARE PROCEEDS TOTALED 504 MILLION IN OVERTHECOUNTER TRADING YESTERDAY MORNINGSTAR SHARES ROSE 50 CENTS TO 11 MORNINGSTAR HAS NO CURRENT PLANS FOR ADDITIONAL ACQUISITIONS MR NOLL SAID BUT THE COMPANY WILL CONTINUE TO BE ON THE LOOKOUT FOR OPPORTUNITIES 9302090016 930209 WHO'S NEWS ELDORADO BANCORP ELDORADO BANCORP TUSTIN CALIF RAYMOND E DELLERBA 44 YEARS OLD WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY AND WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S ELDORADO BANK SUBSIDIARY THE ELECTION OF MR DELLERBA WHO HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMMERCEBANCORP EXPANDS THE BOARD TO NINE MEMBERS HE SUCCEEDS JB CROWELL 59 AS PRESIDENT OF THE BANK MR CROWELL WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT AND CHIEF EXECUTIVE OF THE BANK BECOMES CHAIRMAN OF THE BANK SUCCEEDING GEORGE WELLS 58 WHO REMAINS CHAIRMAN OF THE PARENT 9302090015 930209 TECHNOLOGY GENERAL MAGIC GIVES AT&T EDGE DESPITE TOUTING OPEN' STANDARD BY JOHN J KELLER AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MAGIC INC A SILICON VALLEY STARTUP IS APPARENTLY ALREADY FAVORING ONE OF ITS POWERFUL BACKERS DESPITE ITS PLEDGE TO FOSTER AN OPEN INDUSTRY STANDARD FOR WIRELESS DATA COMMUNICATORS GENERAL MAGIC AN APPLE COMPUTER INC OFFSHOOT WITH SEVERAL ADVANCED TECHNOLOGY PARTNERS PLEDGES THAT ITS SOFTWARE WILL BE AVAILABLE TO ANYONE WHO WANTS TO USE IT BUT INDIVIDUALS CLOSE TO THE COMPANY SAID IT HAS AT LEAST ONE EXCLUSIVE ARRANGEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO ONE OF ITS FINANCIAL BACKERS THESE INDIVIDUALS SAID AT&T WILL GET TO USE THE SOFTWARE IN ITS TELECOMMUNICATIONS NETWORK FOR 2 1/2 YEARS BEFORE DIRECTLY COMPETITIVE CARRIERS SUCH AS MCI COMMUNICATIONS CORP SPRINT CORP OR PRIVATE DATA NETWORKS CAN INSTALL IT AT&T IS THE WORLD'S LARGEST LONGDISTANCE CARRIER AND THE LARGEST CARRIER OF ELECTRONIC MAIL ALREADY THE ARRANGEMENT WITH AT&T HAS ENDANGERED NEGOTIATIONS BETWEEN GENERAL MAGIC AND INTERNATIONAL BUSINESS MACHINES CORP A PROSPECTIVE INVESTOR AND POTENTIALLY POWERFUL ALLY FOR THE FLEDGLING COMPANY ACCORDING TO INDUSTRY EXECUTIVES IBM WOULDN'T COMMENT ON ITS TALKS WITH GENERAL MAGIC BUT GENERALLY IN ORDER FOR US TO EXPLOIT THIS TECHNOLOGY WE THINK WE NEED THE ABILITY TO OFFER NETWORK SERVICES SAID AN IBM SPOKESWOMAN IF GENERAL MAGIC WON'T OFFER IBM THAT ABILITY WE'LL TAKE THAT INTO CONSIDERATION AS WE MAKE OUR DECISION THE SPOKESWOMAN ADDED WE'RE NOT PREPARED TO JOIN THE ALLIANCE AT THIS TIME IBM IS ALREADY A BIG PROVIDER OF NETWORK SERVICES FOR CORPORATIONS AND HAS BEEN TRYING TO REVERSE A RECENT REVENUE SLIDE BY PUSHING MORE AGGRESSIVELY INTO SUCH HIGHGROWTH AREAS COMING UP WITH A NEW COMMUNICATIONS STANDARD WILL BE AS CRUCIAL FOR THE NASCENT MARKET FOR WIRELESS COMMUNICATORS POCKETSIZED GADGETS THAT CAN TRANSMIT SCRIBBLED NOTES SEND FAXES AND PERFORM OTHER FUNCTIONS AS STANDARDIZED NETWORK EQUIPMENT WAS TO THE FORMATION OF THE MIGHTY BELL SYSTEM AT GENERAL MAGIC'S COMINGOUT PARTY YESTERDAY IN NEW YORK THE COMPANY'S BACKERS INCLUDING AT&T MOTOROLA INC JAPAN'S SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CORP AND EUROPE'S GIANT PHILIPS ELECTRONICS NV RHAPSODIZED ABOUT A HUGE MARKET BUT THEY ADMITTED THAT A WIDELY ACCEPTED STANDARD WILL BE NEEDED FOR THE NEW COMMUNICATORS TO TAKE OFF IT WON'T HAPPEN IN THE FIRST YEAR IT MAY TAKE 10 YEARS SAID GENERAL MAGIC PRESIDENT MARC PORAT CONSPICUOUSLY ABSENT FROM THE PODIUM HOWEVER WERE ANY COMPANIES THAT COULD CHALLENGE AT&T IN NETWORK SERVICES SUCH AS MCI AND SPRINT MOTOROLA IS GOING TO USE GENERAL MAGIC'S SOFTWARE IN ITS ARDIS RADIO COMMUNICATIONS NETWORK WHICH IT OWNS IN PARTNERSHIP WITH IBM BUT THAT STARTUP NETWORK WOULDN'T THREATEN AT&T AND ONLY A SMALL NUMBER OF BUSINESSES USE IT FOR PRIVATE COMMUNICATIONS MR PORAT SAID MORE NETWORKSERVICES COMPANIES WOULD SOON BE ADDED BUT HINTED STRONGLY THAT THE ADDITIONS WOULD COME FROM OVERSEAS MARKETS WHERE AT&T ISN'T DEFENDING A NO 1 POSITION IN OTHER AREAS SUCH AS COMMUNICATIONS DEVICES THERE APPEARS TO BE PLENTY OF COMPETITION AMONG GENERAL MAGIC'S BACKERS MOTOROLA COULD RIVAL SONY MATSUSHITA PANASONIC'S PARENT AND PHILIPS ASKED YESTERDAY ABOUT WHY AT&T'S SERVICE RIVALS SUCH AS MCI WERE LEFT OFF GENERAL MAGIC'S ROSTER OF INVESTORS AT&T GROUP EXECUTIVE ROBERT KAVNER JOKED THAT THE PARTNERS MISSED THAT STEP AT&T LATER DECLINED TO SAY WHETHER IT HAS AN EARLY LOCK ON THE GENERAL MAGIC STANDARD DUBBED TELESCRIPT A SPOKESMAN SAID WHEN YOU'RE MAKING AN INVESTMENT OF THIS SIZE YOU WANT TO BE FIRST IN THE MARKET IT DOESN'T MEAN WE'LL BE THE ONLY NETWORK OUT THERE INDEED IN A VIDEO SHOWN AT YESTERDAY'S NEWS CONFERENCE AT&T CHAIRMAN ROBERT E ALLEN SAID WE INVITE EVERYBODY INTO THE WATER RICH MILLER GENERAL MAGIC VICE PRESIDENT SAID HE COULDN'T COMMENT ON ANY COMMERCIAL TERMS OF ITS DEALS WITH INVESTORS HE SAID THAT TELESCRIPT IS MEANT TO BE LICENSED VERY OPENLY BUT WOULDN'T DISCUSS WHETHER AN EXCLUSIVE DEAL WOULD BE INCONSISTENT WITH THAT PHILOSOPHY MCI AT&T'S BIGGEST COMMUNICATIONS SERVICES RIVAL WOULDN'T SAY WHETHER IT TRIED TO HOOK UP WITH GENERAL MAGIC'S TECHNOLOGY WE DON'T TEND TO COMMENT ON DISCUSSIONS THAT DIDN'T COME TO FRUITION SAID GARY PARSONS SENIOR VICE PRESIDENT OF CORPORATE POLICY BUT HE ADDED MCI MIGHT BE FORCED TO USE A DIFFERENT STANDARD WHICH HE SAID WOULD SET OFF A NEW RIVALRY THAT WOULD BE TRULY TRAGIC FOR THE EMERGING MARKET SPRINT THE THIRD LARGEST US CARRIER DECLINED TO COMMENT 9302090013 930209 IRS TO ALLOW PRE1992 HOME OFFICE CLAIMS MOST DEDUCTIONS FOR OUTLAYS WILL BE UPHELD DESPITE SUPREME COURT RULING BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE SAID IT WON'T DISALLOW MANY DEDUCTIONS FOR HOME OFFICE EXPENSES MADE ON PRE1992 TAX RETURNS DESPITE A RECENT SUPREME COURT RULING THAT MADE IT HARDER FOR PEOPLE TO TAKE SUCH DEDUCTIONS IN RELEASING NEW GUIDELINES IN THIS AREA THE IRS SAID IT WOULDN'T REJECT THE EARLIER DEDUCTIONS SO LONG AS TAXPAYERS REASONABLY FOLLOWED THE PREVIOUS GUIDELINES ISSUED BY THE AGENCY ALTHOUGH THE HIGH COURT'S DECISION TECHNICALLY APPLIES TO ALL RETURNS STILL SUBJECT TO AUDIT IN THE INTEREST OF FAIRNESS WE'RE NOT GOING TO CHALLENGE THEM AN IRS SPOKESMAN ASSERTED AFTER THE SUPREME COURT HANDED DOWN ITS DECISION LAST MONTH SOME ACCOUNTANTS RECOMMENDED THAT THEIR CLIENTS AMEND EARLIER RETURNS TO REFLECT THE RULING NOW SUCH A STEP SEEMS FAR LESS IMPERATIVE IT LOOKS LIKE THE IRS IS SAYING IT WON'T APPLY THE COURT'S FINDING IN ANY KIND OF DRACONIAN WAY SAID STEPHEN CORRICK A TAX PARTNER WITH ARTHUR ANDERSEN & CO THE AGENCY IS BEING BENEFICENT BECAUSE THERE'S NO DOUBT THEY COULD GO AFTER PEOPLE IF THEY WANTED TO ADDED THOMAS OCHSENSCHLAGER A PARTNER AT THE ACCOUNTING FIRM GRANT THORNTON THIS IS A BONE THEY'RE TOSSING MR CORRICK SAID THERE ARE STILL PLENTY OF PEOPLE WHO SHOULD CONSIDER AMENDING THEIR RETURNSNAMELY THOSE WITH SITUATIONS THAT MIRROR THE ONE ADDRESSED BY THE SUPREME COURT EARLIER IRS GUIDELINES HAD INDICATED THAT FOR A HOME OFFICE TO BE CONSIDERED A TAXPAYER'S PRINCIPAL PLACE OF BUSINESS AND THEREFORE ELIGIBLE FOR DEDUCTIONS THREE FACTORS SHOULD BE WEIGHED THE AMOUNT OF TIME SPENT THERE THE FACILITIES AVAILABLE IN THE HOME OFFICE AND THE AMOUNT OF INCOME DERIVED DIRECTLY FROM THE ACTIVITIES CONDUCTED THERE THESE GUIDELINES FEATURED AN EXAMPLE OF A SALESPERSON WHO HAD SPENT A SUBSTANTIAL AMOUNT OF TIME IN A ROOM IN HIS HOUSE THAT WAS USED EXCLUSIVELY TO MAINTAIN BUSINESS RECORDS AND MAKE APPOINTMENTS THIS SALESPERSON COULD MAKE APPROPRIATE HOMEOFFICE DEDUCTIONS ACCORDING TO THE GUIDELINES THE ANNOUNCEMENT YESTERDAY SUGGESTS THAT IF IT'S A CLOSE CALL THE IRS MAY GIVE THE BENEFIT OF THE DOUBT TO THE TAXPAYER WHO FOLLOWED THIS EXAMPLE MR CORRICK SAID IN ADDITION THE IRS SAID YESTERDAY THAT TAXPAYERS WHO WOULD HAVE EXPECTED TO QUALIFY FOR A HOMEOFFICE DEDUCTION ON THEIR 1992 RETURNS BY FOLLOWING THE PREVIOUS GUIDELINES WON'T HAVE TO PAY ANY ESTIMATEDTAX PENALTIES TO THE EXTENT THAT THEIR UNDERPAYMENT IS ATTRIBUTABLE TO THE LOSS OF THE DEDUCTION THE IRS'S POSITION IS REFLECTIVE OF A BROADER STRATEGY IN WHICH THE AGENCY IS TRYING TO IMPROVE PEOPLE'S COMPLIANCE WITH THE TAX LAWS BY BEING LESS CONFRONTATIONAL JUST LAST WEEK THE IRS PUT OUT ANOTHER NEW POLICY DESIGNED TO ENSURE THAT ONLY THOSE PEOPLE AT A COMPANY WHO TRULY ARE RESPONSIBLE FOR FAILING TO COLLECT AND TURN OVER PAYROLL TAXES ARE THE ONES GIVEN TOUGH PENALTIES IN YET ANOTHER EXAMPLE OF THIS APPROACH THE IRS ALSO LAST WEEK SAID THAT IT HAD REACHED A SETTLEMENT FAVORABLE TO COUNTRY MUSIC STAR WILLIE NELSON WHO HAD BEEN ACCUSED OF OWING BACK TAXES UNDER A NEW OFFERSINCOMPROMISE POLICYEND THE NEW HOMEOFFICE GUIDELINES FOCUS ON TWO FACTORS THAT THE SUPREME COURT SET FORTH TO DETERMINE WHAT QUALIFIES AS A TAXPAYER'S PRINCIPAL PLACE OF BUSINESS THE RELATIVE IMPORTANCE OF ACTIVITIES CONDUCTED AT EACH BUSINESS LOCATION AND THE AMOUNT OF TIME SPENT AT EACH SITE THE IRS GIVES THREE EXAMPLES IN THE NEW GUIDELINES IN ONE AN ANESTHESIOLOGIST HAS A HOME OFFICE WHERE SHE SPENDS 10 TO 15 HOURS A WEEK READING AND DOING PAPERWORK SHE SPENDS 30 TO 35 HOURS A WEEK ADMINISTERING ANESTHESIA AND POSTOPERATIVE CARE IN THREE HOSPITALS NONE OF WHICH PROVIDES HER WITH AN OFFICE BECAUSE THE HOME OFFICE ACTIVITIES ARE LESS IMPORTANT TO HER BUSINESS THAN THE SERVICES SHE PERFORMS IN THE HOSPITALS SHE ISN'T ALLOWED TO DEDUCT THE EXPENSES FOR THE BUSINESS USE OF HER HOME IN THE SECOND EXAMPLE A SALESMAN HAS A HOME OFFICE WHERE HE SETS UP APPOINTMENTS AND WRITES UP ORDERS BUT THE BULK OF HIS TIME IS SPENT AT HIS CUSTOMERS' PLACES OF BUSINESS PEDDLING HIS WARES BECAUSE THE ESSENCE OF HIS JOB IS MEETING CUSTOMERS OUT OF THE HOME HE CAN'T DEDUCT EXPENSES FOR THE BUSINESS USE OF HIS HOME THE FINAL EXAMPLE SHOWS A SALESMAN WHOSE PRIMARY BUSINESS IS MAKING TELEPHONE OR MAIL CONTACT WITH CUSTOMERS WHICH HE DOES FROM HIS HOME OFFICE HE CAN BY CONTRAST SAFELY MAKE THE DEDUCTION THE NEW GUIDANCE INCLUDING THE EXAMPLES WILL ACCOMPANY IRS PUBLICATION 587 BUSINESS USE OF YOUR HOME THE VERSION OF THE PUBLICATION THAT WAS SUPPOSED TO BE USED IN PREPARING 1992 TAX RETURNS WAS PRINTED BEFORE THE SUPREME COURT DECISION BUT THE IRS SAID THAT UPDATED INFORMATION WILL BE INSERTED BY THE END OF THE MONTH 9302090012 930209 WALSH PORTRAYS WEINBERGER AS KEEPER OF REAGAN SECRETS IN IRANCONTRA AFFAIR BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER DEFENSE SECRETARY CASPAR WEINBERGER'S PERSONAL NOTES SHOW HE WAS AN EARLY WITNESS TO BOTH THE SECRET SAUDI ROLE IN THE IRANCONTRA AFFAIR AND WHITE HOUSE DECISIONS TO ASSIST ILLEGAL SHIPMENTS OF USMADE ARMS TO TEHRAN IN 1985 SCORES OF EXCERPTS FROM THE HANDWRITTEN NOTES WERE MADE PUBLIC BY INDEPENDENT COUNSEL LAWRENCE WALSH AS PART OF A LENGTHY INTERIM REPORT TO CONGRESS THE REPORT GAVE DETAILS OF THE PROSECUTION'S CASE AGAINST MR WEINBERGER BEFORE HE RECEIVED A PARDON FROM PRESIDENT BUSH IN THE LAST DAYS OF HIS ADMINISTRATION APART FROM THE WEINBERGER NOTES MR WALSH SAID TESTIMONY FROM FORMER WHITE HOUSE CHIEF OF STAFF DONALD REGAN AND FORMER SECRETARY OF STATE GEORGE SHULTZ WOULD HAVE SUPPORTED THE PROSECUTION'S CLAIM THAT THE REAGAN ADMINISTRATION SOUGHT TO CONCEAL THE FACTS OF THE IRAN ARMS SALES FROM THE PUBLIC AND FROM CONGRESS THE MOST SENSITIVE OF THESE SHIPMENTS WERE THOSE THROUGH ISRAEL IN 1985 THE PROSECUTOR PORTRAYED MR WEINBERGER AS A DISGRUNTLED PARTNER WHO WARNED AGAINST THE ARMSFORHOSTAGES POLICY BUT LATER SOUGHT TO SHIELD PRESIDENT REAGAN BY DENYING KNOWLEDGE OF VIOLATIONS OF ARMS EXPORT LAWS ROBERT BENNETT MR WEINBERGER'S ATTORNEY DISMISSED MR WALSH'S REPORT AS A WORK OF FICTION AND A TERRIBLY ONESIDED PICTURE MR BENNETT ASSERTED HE'S OBVIOUSLY OBSESSED WITH THIS CASE AND TRYING TO REHABILITATE HIS DAMAGED REPUTATION IN THE SAME VEIN SENATE REPUBLICAN LEADER ROBERT DOLE CALLED THE PROSECUTOR FRUSTRATED AND BITTER THE REPORT INDEED HAS A BLUNT TONE BUT THE WEALTH OF WRITTEN EVIDENCE CITED BY MR WALSH IS NONETHELESS SIGNIFICANT IN SHEDDING LIGHT ON MR WEINBERGER'S ROLE IN THE AFFAIR AS DEFENSE SECRETARY HE WAS OFTEN AT LEAST ONE STEP REMOVED FROM BOTH THE SECRET ARMS SALES TO IRAN AND THE COVERT WAR IN NICARAGUA BUT HIS VOLUMINOUS NOTES SHOW THAT HE WAS A CRUCIAL WITNESS HOLDING SECRETS IMPORTANT TO PRESIDENT REAGAN AND SAUDI AMBASSADOR PRINCE BANDAR BIN SULTAN MR WALSH'S REPORT SAID MR WEINBERGER'S DIARY NOTES FROM 1984 TO 1987 SHOW HE HAD AT LEAST 64 SEPARATE CONTACTS WITH THE PRINCE INCLUDING NUMEROUS PRIVATE MEETINGS AND SOCIAL EVENTS AS EARLY AS MARCH 1985 THE NOTES SHOW THAT GENERAL JOHN VESSEY JR THENCHAIRMAN OF THE JOINT CHIEFS OF STAFF AND MR WEINBERGER DISCUSSED SAUDI AID TO HELP SUSTAIN USBACKED INSURGENTS IN NICARAGUA BANDAR IS GIVING 25 MILLION TO CONTRAS SO ALL WE NEED IS NONLETHAL AID MR WEINBERGER WROTE AND ACCORDING TO MR WALSH'S REPORT GEN VESSEY RECALLS THAT HE OR MR WEINBERGER LATER URGED THENNATIONAL SECURITY ADVISER ROBERT MCFARLANE TO SUPPORT A PROPOSED ARMS SALE TO SAUDI ARABIA BECAUSE THE SAUDIS WERE FUNDING THE CONTRAS MR WEINBERGER'S NOTES SHOW HE WAS FIRST DRAWN INTO THE IRAN INITIATIVE AS DEFENSE SECRETARY BECAUSE OF QUESTIONS CONCERNING ARMSEXPORT LAWS AND THE REPLENISHMENT OF USMADE MISSILES SHIPPED BY ISRAEL TO IRAN IN 1985 A NOV 19 1985 NOTE FOR EXAMPLE REFLECTS A DISCUSSION WITH GEN COLIN POWELL NOW CHAIRMAN OF THE JOINT CHIEFS OF STAFF IN WHICH IT WAS AGREED THAT A PROPOSED SALE OF HAWK MISSILES IS A CLEAR VIOLATION WHEN THE SCANDAL BROKE A YEAR LATER THERE WAS SERIOUS CONCERN IN THE WHITE HOUSE THAT THESE LEGAL QUESTIONS COULD UNDERMINE PRESIDENT REAGAN AND IN YESTERDAY'S REPORT MR WALSH ARGUES THAT MR WEINBERGER ACQUIESCED AS OTHER ADMINISTRATION OFFICIALS PROVIDED INFORMATION TO MEMBERS OF CONGRESS AND TO THE PUBLIC THAT HE KNEW TO BE FALSE MEETING WITH PRESIDENT REAGAN IN NOVEMBER 1986 AFTER THE IRAN INITIATIVE BECAME PUBLIC MR WEINBERGER WROTE I URGED WE ALL STOP TALKING ABOUT IT IN A SEPARATE MEETING HIS NOTES DESCRIBE THENATTORNEY GENERAL EDWIN MEESE TELLING OFFICIALS THAT THE NOVEMBER 1985 HAWKS SHIPMENT WASN'T LEGAL BUT THAT MR REAGAN HADN'T BEEN AWARE IN ADVANCE OF IT TAKING PLACE MR WEINBERGER APPARENTLY MADE NO OBJECTION AT THAT TIME THOUGH HIS OWN NOTES FROM A YEAR EARLIER SHOW THAT HE UNDERSTOOD MR REAGAN HAD IN FACT APPROVED THE TRANSACTION 9302090011 930209 INTERNATIONAL DUTCH PAPER FIRMS DISCLOSE MERGER TERMS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM THREE DUTCH PAPER AND PACKAGING COMPANIES DISCLOSED TERMS OF THEIR PREVIOUSLY ANNOUNCED MERGER THEY SAID THE TRANSACTION WILL INVOLVE AN EXCHANGE OF SHARES IN THE PREMERGER COMPANIES INTO STOCK OF THE SURVIVOR WHICH WILL BE CALLED NV KONINKLIJKE KNP BT SHARES IN THE CURRENT KONINKLIJKE KNP NV AND IN BUEHRMANNTETTERODE NV WILL BE SWAPPED ON A ONETOONE RATIO SHAREHOLDERS IN THE THIRD PAPER COMPANY VRG GROEP NV WILL EXCHANGE FIVE OF THEIR SHARES FOR FOUR IN THE NEW COMPANY KNP OWNS 51 OF VRG GROEP THE COMBINED COMPANY WILL HAVE SALES OF ABOUT 13 BILLION GUILDERS 697 BILLION AND NEARLY 30000 EMPLOYEES MAKING IT EUROPE'S SECONDLARGEST PAPER COMPANY AFTER STORA KOPPARBERGS AB OF SWEDEN BUT THE COMPANIES YESTERDAY SAID THEIR SALES AND EARNINGS WERE SERIOUSLY UNDER PRESSURE THROUGHOUT 1992 AND THAT THEY EXPECT CONDITIONS TO BE DIFFICULT AT LEAST FOR THE FIRST HALF OF 1993 THEY SAID THE SHARE EXCHANGE OFFER EXPIRES MARCH 1 ASSUMING ENOUGH QUALIFYING SHARES ARE TENDED IN THE EXCHANGE OFFER THE POSTMERGER COMPANY WOULD BEGIN TRADING UNDER ITS NEW BOURSE LISTING ON MARCH 9 9302090010 930209 CHAIRMAN'S BRAND HEALTHY CHOICE' FOODS OF CONAGRA FLOUNDER AFTER HEALTHY START FUMBLED DEBUTS PRICE WARS HINDER PRODUCTS PUSHED BY CEO MIKE' HARPER A CHILL FROM SUPERMARKETS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL OMAHA NEB IT HAS THE MAKINGS OF A CORPORATE LEGEND A HEART ATTACK LEADS A CHIEF EXECUTIVE OFFICER TO THINK UP A DARING NEW DIRECTION FOR HIS COMPANY HE DEVELOPS A MEGABRAND THAT ROUTS ITS RIVALS AND REVOLUTIONIZES THE INDUSTRY WALL STREET APPLAUDS THE CEO RETIRES A HERO FOR A WHILE THIS SEEMED TO BE THE STORY OF CHARLES M MIKE HARPER OF CONAGRA INC AND THE HEALTHY CHOICE BRAND HE BROUGHT TO LIFE SINCE ITS SPLASHY DEBUT FOUR YEARS AGO AT NEW YORK'S PLAZA HOTEL WHERE WAITERS SERVED THE NEW LINE OF FROZEN DINNERS WITH REDUCED FAT SODIUM AND CHOLESTEROL HEALTHY CHOICE HAS RAPIDLY PROLIFERATED IN THE NATION'S SUPERMARKETS THE GREEN LABEL NOW ADORNS NEARLY 200 ITEMS FROM HOT DOGS AND MUFFINS TO STRING CHEESE AND SPAGHETTI SAUCE AND DOZENS MORE ARE PROMISED YET HEALTHY CHOICE'S OVERALL PERFORMANCE IS ANYTHING BUT HEALTHY THE COMPANY WON'T SAY WHETHER HEALTHY CHOICE IS PROFITABLE OVERALL BUT IN FROZEN DINNERS THE BRAND'S FOUNDATION SALES SLID 25 OR SOME 57 MILLION LAST YEAR WHILE FROZENENTREE SALES ARE UP THEY TRAIL ARCHRIVAL LEAN CUISINE A BRAND FROM STOUFFER THAT HAS BEEN AROUND LONGER INDEED HEALTHY CHOICE IS AN ALSORAN IN NEARLY EVERY CATEGORY IT HAS ENTERED SO TO BOLSTER SALES CONAGRA IS FORCED TO DISCOUNT WHAT IT HAD HOPED WOULD BE A PREMIUMPRICED BRAND EVEN WITH THE DISCOUNTS SOME SUPERMARKETS ARE DROPPING PARTS OF THE LINE FOR POOR PERFORMANCE FINALLY THE BRAND'S CHEESES HAVE BEEN PLAGUED BY AN EMBARRASSING PRODUCT RECALL CONAGRA APPEARS TO HAVE FALLEN VICTIM TO TWO CLASSIC MISCUES ONE COMMON TO COMPANIES SEEKING TO BUILD MAJOR BRANDS AND THE OTHER FAMILIAR IN ORGANIZATIONS WITH A BIGGERTHANLIFE CEO FIRST THE COMPANY TRIED TO DO TOO MUCH TOO FAST SOMETIMES SACRIFICING QUALITY AND ENDANGERING THE BRAND'S IMAGE AS IT HAS SOUGHT TO OUTRACE THE COMPETITION DOWN SUPERMARKET AISLES SECOND CONAGRA'S JUDGMENT IN EXPANDING THE BRAND MAY HAVE BEEN DRIVEN MORE BY A DESIRE TO PLEASE ITS REVERED CHAIRMAN THAN TO SATISFY CONSUMER PALATES THEY GOT INTO PRODUCTS BASED ON EGO RATHER THAN NEED CONTENDS JOHN THOMPSON A FORMER CONAGRA MANAGER WHO WORKED ON THE BRAND WITHIN CONAGRA THE BRAND THAT ONCE SEEMED A SURE MAKER OF CAREERS NOW IS BREAKING THEM SEVERAL TOP MANAGERS HAVE LEFT INCLUDING THE MAN ONCE PRAISED AS HEALTHY CHOICE'S BRAND MAMA EARLY IN JANUARY THE COMPANY TOOK ITS STRUGGLING FROZENFOODS OPERATION WHICH INCLUDES MANY HEALTHY CHOICE ITEMS AWAY FROM ONE SENIOR EXECUTIVE AND REASSIGNED THE 1 BILLION BUSINESS TO ANOTHER ITS THIRD OVERSEER IN LESS THAN A YEAR DESPITE THE TURMOIL CONAGRA MANAGEMENT DEFENDS ITS PREMIER BRAND AS STRONG AND GROWING ITS PRESIDENT AND CEO PHILIP B FLETCHER CALLS HEALTHY CHOICE'S ACHIEVEMENTS UNPRECEDENTED MR HARPER'S ENTHUSIASM FOR HEALTHY CHOICE WAS DEEPLY PERSONAL IN 1985 WHILE ON BUSINESS IN CALIFORNIA THE IMPOSING 6FOOT6 EXECUTIVE THEN 57 YEARS OLD SUFFERED A MILD HEART ATTACK FROM WHICH HE APPARENTLY HAS FULLY RECOVERED WORRIED THAT DOCTORS WOULD PRESCRIBE A BLAND DIET THE REST OF HIS LIFE AND NOTING A LACK OF HEALTHY ALTERNATIVES ON SUPERMARKET SHELVES THE FUDGESUNDAE LOVER HIT ON THE IDEA OF GOODFORYOU FOOD THAT TASTES GOOD NO ONE FAULTS CONAGRA FOR DEVELOPING MIKE'S BRAND SUCCESSFUL BRANDS OFTEN BEGIN WITH A VISIONARY AND CONAGRA'S MR HARPER CERTAINLY WAS THAT THERE'S NO QUESTION THAT HEALTHY CHOICE WOULDN'T EXIST TODAY HAD IT NOT BEEN FOR MIKE'S LEADERSHIP SAYS ROBERT DAUGHERTY A FORMER DIRECTOR WHO WOOED MR HARPER TO CONAGRA IN THE MID1970S HE STIMULATED THE GENERAL MANAGERS IN CHEESE AND RED MEAT TO COME ALONG WITH PRODUCTS THAT WOULD FIT IT WAS HIS DRIVE HIS IMAGINATION AND HIS PERSISTENCE THAT MADE IT GO HE ADDS MIKE IS THE MAN RESPONSIBLE FOR WHAT'S HAPPENED TO CONAGRA IN THE LAST 18 YEARS THE COMPANY WAS NEAR BANKRUPTCY AND HE CAME IN AND BUILT IT INTO THE FOOD GIANT IT IS TODAY FROM A CONCERN FOCUSED ON FLOUR MILLS MIKE INSPIRES PEOPLE CONAGRA'S CORPORATE STRATEGISTS LIKED HEALTHY CHOICE FOR SOME OTHER VERY IMPERSONAL REASONS THE COMPANY THOUGHT IT SAW THE MAKINGS OF A MEGABRAND THE BENEFITS OF SUCH A BROAD BRAND NAME CAN BE ENORMOUS GIVING A COMPANY EXTRAORDINARY CLOUT WITH RETAILERS AND POWERFUL ADVERTISING SYNERGIES FOR NEBRASKABASED CONAGRA HEALTHY CHOICE ALSO REPRESENTED A RARE OPPORTUNITY TO REMAKE ITS IMAGE THEN THAT OF MAINLY A PRAIRIE PURVEYOR OF COMMODITYTYPE FOOD PRODUCTS THE BRAND'S GREAT EARLY SUCCESS CAST THE COMPANY AS A SAVVY MARKETER WITH A FEEL FOR THE CONSUMER MR HARPER SPENT MANY HOURS IN THE RESEARCHANDDEVELOPMENT LABS SAMPLING POTENTIAL HEALTHY CHOICE PRODUCTS WHEN HE RETIRED AS CEO LAST FALL KEEPING THE POSITION OF CHAIRMAN THE COMPANY NAMED THE RESEARCH FACILITY AFTER HIM MR HARPER WAS SO PROUD OF THE BRAND'S CONCEPT THAT HE WOULD INSIST THAT CONAGRA'S BOARD MEMBERS EAT THE PRODUCT WHEN THEY MET THAT'S ALL WE HAD SAYS FORMER DIRECTOR LUCIUS D MCGEHEE FOR THE BRAND'S WEST COAST LAUNCH IN 1989 THE COMPANY THREW AN ELABORATE DINNER PARTY FOR SEVERAL HUNDRED ON THE QUEEN MARY PERMANENTLY DOCKED IN LONG BEACH CALIF CONAGRA ALSO RETAINED A PUBLICRELATIONS FIRM TO SEEK THE SUPPORT OF DIETITIANS EARLY COMMERCIALS FEATURED THE BALDING CHAIRMAN HOLDING BOXES OF HEALTHY CHOICE DINNERS HE ALSO SHOWED UP AT TASTETESTINGS ONCE MR HARPER SAMPLED A BREAKFAST SANDWICH AND HATED IT IT WAS THE FRIDAY MORNING BEFORE THE LONG CHRISTMAS WEEKEND IN 1990 MR HARPER ORDERED UP ANOTHER PROTOTYPE AND BY THAT AFTERNOON HAD WHAT HE CALLS A DAMN GOOD REPLACEMENT SOME BRANDDEVELOPMENT PEOPLE CANCELED YEAREND VACATIONS TO WORK UP MARKETING PLANS FOR THE PRODUCT'S ACCELERATED ROLLOUT WITH ITS NOVELTY TIMELINESS AND SUPPORTIVE HYPE HEALTHY CHOICE BECAME AN OVERNIGHT HIT SELLING IT TO THE GROCERY TRADE WAS EASY A PARROT COULD HAVE DELIVERED THE FACT SHEETS IT WAS SO HOT SAYS BRUCE HORN A LOS ANGELES FOOD BROKER SALES INCENTIVES TO BROKERS WERE ALLURING INCLUDING THE KEYS TO A SLEEK JAGUAR PAINTED HEALTHY CHOICE GREEN QUICKLY THE FROZENDINNER LINE DOUBLED THEN CAME A SLEW OF ENTREES THE BRAND ACCOUNTS FOR LESS THAN 4 OF CONAGRA'S TOTAL REVENUE OF 21 BILLION AND THE INITIAL DOLLARS CONAGRA PUT BEHIND HEALTHY CHOICE PROMOTIONS ASTOUNDED THE COMPETITION THEY WERE TEARING UP THE PEA PATCH SAYS E MICHAEL MOONE WHOM NESTLE SA'S STOUFFER FROZEN FOODS BROUGHT IN TO PROTECT ITS FROZEN BRANDS SPENDING WAS CRAZY SAYS GEORGE SATTLER CHAIRMAN OF FIVE STAR BROKERAGE CO A DENVER FOOD BROKER THAT REPRESENTED THE BRAND UNTIL EARLY LAST YEAR THE BRAND ALSO ATTRACTED ATTENTION ON WALL STREET CONAGRA'S STOCK TOOK OFF ON EXPECTATIONS OF HEALTHY CHOICE'S SUCCESS FOR A COUPLE OF YEARS WE HAD IT OUR WAY SAYS KENNETH POND A FORMER CONAGRA SALES EXECUTIVE AT THE END OF FISCAL 1989 DURING HEALTHY CHOICE'S FIRST YEAR CONAGRA SHARES WERE VALUED AT 1522 YESTERDAY ADJUSTED FOR SPLITS CONAGRA STOCK WAS QUOTED IN LATE NEW YORK STOCK EXCHANGE TRADING AT 28375 WITH A 52WEEK HIGH OF 3425 AND A 52WEEK LOW OF 2450 FROZEN DESSERTS BREAKFAST SANDWICHES AND FRENCHBREAD PIZZA MR HARPER KEPT PUSHING TO GET MORE PRODUCTS INTO THE MARKET QUICKLY CONAGRA TARGETED CATEGORIES WHERE SALES WERE LANGUISHING AND WHERE A HEALTHY PRODUCT MIGHT CARVE A QUICK NICHE WHEN HEALTHY CHOICE DINNERS FIRST ARRIVED IN STORES BIG COMPETITORS WERE CAUGHT OFF GUARD NOTHING QUITE LIKE IT HAD EVER BEEN MARKETED ON A LARGE SCALE BUT THEY QUICKLY RESPONDED WITH ONE OF THE BLOODIEST PRICE WARS IN SUPERMARKET HISTORY STOUFFER PHILIP MORRIS COS' KRAFT GENERAL FOODS AND OTHER DEEPPOCKETED RIVALS SOON SLASHED PRICES AND GUTTED PROFIT MARGINS TO MAINTAIN UNIT SALES BOGOS BUYONE GETONEFREE OFFERS WERE COMMONPLACE MR FLETCHER CONAGRA'S PRESIDENT CONCEDES THE WHOLE PRICING SYSTEM COLLAPSED TO THIS DAY PREMIUM FROZEN DINNERS AND ENTREES REMAIN A BATTLEGROUND IN ADDITION OTHER HEALTHY BRANDS APPEARED AND NOW NUMBER NEARLY A DOZEN SOME AT CONAGRA AS WELL AS COMPETITORS BLAME STUMBLES BY HEALTHY CHOICE HAMBURGER AND BREADED FISH ON PRESSURE FROM THE TOP CONAGRA FIRST SOLD THE FISH IN JANUARY 1992 THE OFFSEASON AND DIDN'T HEAVILY PROMOTE THE PRODUCT DURING THE FOLLOWING LENT RIVALS ONCE AGAIN DISCOUNTED DRASTICALLY ANOTHER PROBLEM SAYS ONE FOOD BROKER CONAGRA FAILED TO REALIZE THAT PEOPLE THINK OF FISH AS HEALTHY TO BEGIN WITH AS FOR HAMBURGER THE EXTRALEAN MEAT WAS WRAPPED IN A PLASTIC TUBE SO SOME BUTCHERS PUT IT IN WITH FROZEN BREAKFAST SAUSAGE WHO BUYS FROZEN HAMBURGER MR HARPER NOW ASKS THOSE MISSTEPS WERE INDICATIVE OF A COMPANY RUSHING INTO CATEGORIES WHERE IT HAD LITTLE EXPERIENCE BUT SUBORDINATES SAY THE CHAIRMAN'S KEEN INTEREST COUPLED WITH A CORPORATE CULTURE DESCRIBED AS ONE OF DOING NOT TALKING PUSHED THEM ON IT WAS A PRESSURE COOKER INSIDE THE COMPANY SAYS SUSAN HANLEY WHO WORKED ON HEALTHY CHOICE'S PUBLICITY TEAM UNTIL LAST YEAR MR HARPER ACKNOWLEDGES THAT I WAS DEEPLY COMMITTED TO THE MEGABRAND STRATEGY BUT ADDS THAT HE FELT VERY URGENT ABOUT ALL OUR BRANDS AND INSISTS HE DIDN'T SINGLE OUT HEALTHY CHOICE FOR SPECIAL TREATMENT EXECUTION IS CRITICAL IN BUILDING A MEGABRAND AND FEW COMPANIES HAVE DONE IT RIGHT EFFORTS BY BEATRICE CO A DECADE AGO TO PUT ITS NAME ON EVERYTHING FROM SAMSONITE LUGGAGE TO WESSON OIL LARGELY FAILED PEOPLE WEREN'T ALL THAT INTERESTED THAT WESSON OIL CAME FROM BEATRICE SAYS JOHN LISTER CHIEF EXECUTIVE OF LISTER BUTLER INC A NEW YORK PACKAGING CONSULTING FIRM MOST WOULDBE MEGABRANDS ARE LIKE RUBBER BANDS HE SAYS YOU STRETCH THEM TOO FAR AND THEY BREAK ITS INCREASINGLY ERRATIC PERFORMANCE MAKES IT DOUBTFUL HEALTHY CHOICE WILL EVER REACH THE MEGABRAND STATUS THAT MANY ONCE FORESAW PERHAPS MOST TROUBLESOME IS THE COOLING OF INTEREST IN HEALTHY CHOICE AT THE NATION'S SUPERMARKETS WHICH CAN MAKE OR BREAK A BRAND MERELY BY HOW THEY DISPLAY IT AND FEATURE IT IN WEEKLY NEWSPAPER ADS ALTHOUGH THE BRAND WAS INITIALLY A HIT WITH RETAILERS ITS RAPID EXPANSION NOW FRUSTRATES MANY THEY ABSOLUTELY KILL US WITH ALL THE VARIETY COMPLAINS THE HEAD OF A LEADING WHOLESALER'S FROZENFOODS DEPARTMENT NOTING THAT THE BRAND SELDOM COMES IN WITH JUST ONE OR TWO NEW ITEMS SOME GROCERY CHAINS HAVE DROPPED PART OF THE LINE FRED MEYER INC IN PORTLAND ORE FOR INSTANCE NO LONGER STOCKS HEALTHY CHOICE FISH AND BREAKFAST ITEMS A SPOKESMAN SAYS ANOTHER CHAIN SAYS NONE OF THE HEALTHY CHOICE PRODUCTS IS DOING ALL THAT WELL LAST MAY MR ARNDT GOT A CALL FROM CONAGRA'S REGIONAL SALES MANAGER ASKING TO MEET HIM AT AN ORANGE COUNTY AIRPORT THERE THE CONAGRA MANAGER UNCEREMONIOUSLY FIRED CROWN HEALTHY CHOICE WAS IN TROUBLE NOT ONLY IN SOUTHERN CALIFORNIA BUT NATIONWIDE SO CHANGES HAD BEEN ORDERED MR ARNDT SAYS HE WAS TOLD THEY REALLY HAD COMMITTED TO MAKE THIS THE YEAR FOR HARPER AND IT WASN'T HAPPENING MR ARNDT SAYS THIS WAS TO BE HIS GRANDIOSE EXIT SAYS MR SATTLER THE DENVER BROKER WHO WAS ALSO DISMISSED THEY HAD TO FIND SOME FALL GUYS CONAGRA SAYS REASONS BEYOND HEALTHY CHOICE VOLUMES WERE INVOLVED IN THE CHANGES SOME ON WALL STREET ARE NERVOUS AFTER CONAGRA ANNOUNCED PLANS TO SPEND 100 MILLION PROMOTING HEALTHY CHOICE IN THE YEAR ENDING MAY 31 FOODINDUSTRY ANALYST RONALD STRAUSS OF WILLIAM BLAIR & CO ADVISED CLIENTS THAT SUCH COSTS PROVIDE INVESTORS WITH AN UNUSUAL AMOUNT OF UNCERTAINTY AND HEAVY SPENDING FOR HEALTHY CHOICE IS COSTING ITS PARENT IN THE PROFIT COLUMN INDEED IN A FIVEPAGE LETTER COMMENDING THE BRAND TO WALL STREET LAST JULY CONAGRA'S CORPORATE COMMUNICATIONS VICE PRESIDENT INDICATED THAT THE FREEZERCASE WARS AND PRODUCT INTRODUCTORY COSTS HAD HAMPERED RESULTS MR HARPER ACKNOWLEDGES THAT THE COMPANY COULD HAVE MADE A LOT MORE MONEY IN THE SHORT TERM WITHOUT HEALTHY CHOICE BUT HE EXPRESSES CONFIDENCE IT WILL BECOME A MONEY MACHINE IN THREE TO FIVE YEARS PROBLEMS TIED TO HASTY PRODUCT ROLLOUTS STILL CROP UP RECENTLY THE COMPANY RECALLED SEVERAL OF HEALTHY CHOICE'S CHEESES AND DELAYED THE LINE'S NATIONAL INTRODUCTION A SPOKESWOMAN BLAMES A TASTE PROBLEM CONSUMERS HAD WITH SOME CHEDDARS LAST MONTH AS HEALTHY CHOICE'S HEADACHES GOT WORSE CONAGRA LAUNCHED A MASSIVE PROMOTION CAMPAIGN THAT INCLUDED BOOKLETS OF 1 DISCOUNT COUPONS THE COMPANY IS SEEKING TO LURE MORE CUSTOMERS LIKE PHYLLIS SAWYER OF BURBANK CALIF USUALLY I HAVE FOUR OF THE DINNERS A WEEK SAYS THE 57YEAROLD OFFICE MANAGER SHE SAYS THEIR RELATIVELY LOW SODIUM CONTENT NONE CONTAINS MORE THAN 530 MILLIGRAMS HELPS COMBAT HER HIGH BLOOD PRESSURE MR FLETCHER WHO SUCCEEDED MR HARPER AS CHIEF EXECUTIVE SAYS HE IS DETERMINED TO PUSH DOZENS MORE HEALTHY CHOICE PRODUCTS THROUGH WHAT HE CONCEDES IS A NARROW WINDOW OF OPPORTUNITY IN COMING MONTHS THERE'S GREAT STRENGTH IN BEING FIRST HE SAYS 9302090009 930209 BUSINESS BRIEF TYCO TOYS INC FIRM POSTS 4THPERIOD LOSS EXPECTS 1STQUARTER DEFICIT TYCO TOYS INC REPORTED A FOURTHQUARTER LOSS OF 82 MILLION OR 25 CENTS A SHARE IN LINE WITH A PROJECTION IT MADE IN DECEMBER ON SALES OF 2491 MILLION AND SAID IT EXPECTS TO POST A LOSS FOR ITS FIRST QUARTER RICHARD GREY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID DESPITE STRONG SALES FOR MANY OF OUR PRODUCTS INCLUDING CRASH DUMMIES AND CALIFORNIA ROLLER BABY OUR FOURTHQUARTER RESULTS WERE ADVERSELY AFFECTED BY LATE ORDER CANCELLATIONS INVENTORY MARKDOWNS AND SHARPLY HIGHER ADVERTISING AND PROMOTION COSTS A YEAR EARLIER THE MOUNT LAUREL NJ TOY MAKER HAD NET INCOME OF 72 MILLION OR 32 CENTS A SHARE INCLUDING A 369000 CHARGE FROM EARLY EXTINGUISHMENT OF DEBT SALES WERE 1834 MILLION AVERAGE SHARES WERE 328 MILLION COMPARED WITH 235 MILLION A YEAR EARLIER TYCO ADDED THAT WHILE THE COMPANY EXPECTS HIGHER SALES AND EARNINGS IN 1993 THE GROWTH IS EXPECTED TO COME IN THE SECOND HALF MOSTLY FROM INTERNATIONAL OPERATIONS AS A RESULT THE COMPANY EXPECTS TO REPORT A LOSS IN THE FIRST QUARTER IN THE 1992 FIRST QUARTER TYCO HAD NET INCOME OF 29 MILLION OR 11 CENTS A SHARE ON SALES OF 1342 MILLION 9302090008 930209 ECONOMY CLINTON TO OFFER PLAN TO EXTEND JOBLESS BENEFITS PAYOUTS WOULD BE LINKED TO JOBSEARCH SERVICES COUNSELING PROGRAM BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO ASK CONGRESS TO EXTEND THE FEDERAL PROGRAM FOR UNEMPLOYMENT BENEFITS BUT HE WANTS TO LINK THE PAYOUTS TO JOBSEARCH SERVICES FOR PEOPLE RECEIVING THE BENEFITS UNDER THE EXTENSION THE FOURTH IN THE PAST SEVERAL YEARS THE UNEMPLOYED WOULD RECEIVE FEDERAL EMERGENCY JOBLESS AID FOR UP TO AN ADDITIONAL 26 WEEKS AFTER THEY HAVE RUN OUT OF THEIR INITIAL 26 WEEKS OF STATE AID THE EMERGENCY PROGRAM WHICH WOULD RUN UNTIL OCT 2 HAD BEEN SCHEDULED TO EXPIRE MARCH 6 UNDER THE PLAN APPROVED IN JULY BY CONGRESS UNLIKE EARLIER EXTENSIONS OF JOBLESS BENEFITS HOWEVER THE PLAN WOULD BE LINKED TO A SWEEPING PROGRAM DESIGNED TO IDENTIFY WORKERS WITH LITTLE HOPE OF REGAINING THEIR JOBS THOSE EMPLOYEES WOULD THEN BE OFFERED COUNSELING JOBSEARCH ASSISTANCE AND TRAINING ADMINISTRATION OFFICIALS ESTIMATED THAT THE BENEFITS EXTENSION WOULD COST ABOUT 3 BILLION IN THE CURRENT FISCAL YEAR IT WOULD BE PART OF THE WHITE HOUSE'S ECONOMIC STIMULUS PLAN WHICH DEMOCRATIC LEADERS ARE DETERMINED TO MOVE QUICKLY THROUGH CONGRESS LATER THIS MONTH THEY DECLINED TO ESTIMATE HOW MUCH THE JOBSERVICES PART OF THE PLAN WOULD COST THE JOBASSISTANCE PLAN WOULD HAVE THREE PARTS BY THE FIFTH WEEK AFTER FILING FOR UNEMPLOYMENT BENEFITS WORKERS WOULD BE IDENTIFIED AS BEING EITHER TEMPORARILY LAID OFF AND WAITING FOR RECALL OR PERMANENTLY DISPLACED WITH LITTLE HOPE OF REGAINING THEIR JOB CAPITOL HILL OFFICIALS ESTIMATED ABOUT 30 MILLION IN FEDERAL FUNDS WOULD BE NEEDED TO HELP STATES CREATE SYSTEMS TO SORT THOSE WORKERS THOSE WHO ARE DISPLACED WOULD THEN BE OFFERED COUNSELING ON HOW TO PREPARE FOR JOB INTERVIEWS PREPARE RESUMES AND FIND JOB OPPORTUNITIES LATER WORKERS COULD VOLUNTEER FOR JOBTRAINING PROGRAMS RUN BY THE LABOR DEPARTMENT THE ANNOUNCEMENT COMES ON THE HEELS OF A JANUARY PICKUP IN JOB GROWTH THAT REDUCED THE UNEMPLOYMENT RATE TO 71 BUT PRESIDENT CLINTON ARGUED THAT THE PICTURE ACTUALLY IS WORSE THAN THE NUMBERS INDICATE AND THAT JOB GROWTH REMAINS SLUGGISH DESPITE ENCOURAGING STATISTICS ABOUT INCREASED PRODUCTIVITY THERE ARE STILL MILLIONS OF AMERICANS WHO WANT TO GO TO WORK TO SUPPORT THEIR FAMILIES BUT THEY CAN'T FIND JOBS HE TOLD REPORTERS YESTERDAY THE NEW PROGRAM WOULD BETTER LINK DISLOCATED WORKERS TO THE SKILLS WHICH WILL CONTINUE TO BE IN DEMAND BY TOMORROW'S WORKPLACE LABOR SECRETARY ROBERT REICH SAID THE ADMINISTRATION IS LOOKING TO SEVERAL STATE PROGRAMS AS MODELS FOR THE NEW EMPLOYMENT PLAN NEW JERSEY FOR EXAMPLE RECENTLY RAN A PILOT PROJECT TO IDENTIFY THE DISPLACED WORKER FROM THE TEMPORARILY LAIDOFF EMPLOYEE AND THEN TO OFFER DISPLACED WORKERS MORE HELP EARLY IN THE PROCESS CAROLYN GOLDING ACTING ASSISTANT SECRETARY FOR THE LABOR DEPARTMENT'S EMPLOYMENT AND TRAINING ADMINISTRATION SAID THE NEW JERSEY PROGRAM SHARPLY CUT THE NUMBER OF WEEKS OF UNEMPLOYMENT INSURANCE THAT DISPLACED WORKERS RECEIVED A RECENT STUDY BY THE GENERAL ACCOUNTING OFFICE THE CONGRESSIONAL RESEARCH ARM SHOWED THAT ONLY ABOUT 3 OF ALL UNEMPLOYED WORKERS RECEIVED INTENSIVE ASSESSMENT AND COUNSELING CURRENTLY ABOUT 15 MILLION UNEMPLOYED WORKERS RECEIVE FEDERAL BENEFITS UNDER THE PROGRAM EXTENDED IN JULY ABOUT 35 MILLION PEOPLE IN THE US COLLECT UNEMPLOYMENT BENEFITS MS GOLDING SAID OBSERVERS LAUDED THE PLAN TO IDENTIFY WORKERS' JOB POSSIBILITIES AS WELL AS THE COUNSELING PLANS BUT THEY WERE SKEPTICAL ABOUT THE TRAINING PROGRAMS WHICH WOULD BE ADMINISTERED UNDER EXISTING LABOR DEPARTMENT TRAINING PROGRAMS CURRENT PROJECTS RUN BY THE DEPARTMENT HAVE COME UNDER FIRE FOR BEING EXPENSIVE AND RELATIVELY UNSUCCESSFUL I AM NOT TERRIBLY PERSUADED THAT THE TRAINING REALLY HAS HELPED THE WORKERS ALL THAT MUCH ARGUED GARY BURTLESS AN ECONOMIST AT THE BROOKINGS INSTITUTION IN WASHINGTON YOU'VE GIVEN A PERSON MORE TRAINING BUT YOU HAVEN'T CREATED THE NEW JOBS TO GO ALONG WITH IT INSTEAD MR BURTLESS RECOMMENDS FINDING JOBS FOR WORKERS AND TRAINING THEM FOR THOSE SPECIFIC JOBS 9302090007 930209 BUSINESS BRIEF CHRISTMAS SALES BOOST HASBRO'S NET INCOME 46 FOR 4TH QUARTER PAWTUCKET RI HASBRO INC SAID NET INCOME ROSE 46 IN THE FOURTH QUARTER REFLECTING STRONG CHRISTMAS SALES AND CONTRIBUTIONS FROM ITS TONKA CORP ACQUISITION IN 1991 HASBRO THE NATION'S LARGEST TOY AND GAME MAKER POSTED NET OF 656 MILLION OR 73 CENTS A SHARE COMPARED WITH 448 MILLION OR 51 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 92 TO 8313 MILLION FROM 7612 MILLION A YEAR AGO IT WAS A MERRY CHRISTMAS AND A HAPPY HANUKKAH FOR HASBRO SAID ANALYST GARY M JACOBSON OF KIDDER PEABODY & CO HASBRO'S RESULTS EXCEEDED HIS EXPECTATIONS OF 67 CENTS A SHARE FOR THE QUARTER IN PART BECAUSE PROFIT MARGINS WERE BETTER THAN EXPECTED IN HASBRO'S PARKER BROTHERS AND MILTON BRADLEY BOARD GAME LINES HE SAID ALAN G HASSENFELD HASBRO CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE GAME LINES PROFITED FROM THE ADDITION THIS YEAR OF GAMES GRAPE ESCAPE GIGGLE WIGGLE AND DON'T WAKE DADDY TRADITIONAL GAMES MONOPOLY SCRABBLE AND THE GAME OF LIFE ALSO SOLD WELL THE COMPANY SAID THE KENNER AND HASBRO TOY LINES ALSO PERFORMED WELL HASBRO SAID LED BY NERF BATMAN CABBAGE PATCH KIDS THE GI JOE FIGURES AND THE NEW PUPPY SURPRISE FOR THE YEAR NET MORE THAN DOUBLED TO 1792 MILLION OR 201 A SHARE FROM 817 MILLION OR 94 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER RESULTS INCLUDED A 59 MILLION PRETAX RESTRUCTURING CHARGE REVENUE ROSE 19 TO 254 BILLION FROM 214 BILLION HASBRO SAID INTERNATIONAL SALES WHICH ACCOUNT FOR ABOUT 40 OF REVENUE INCREASED 13 DURING THE FOURTH QUARTER FROM THE YEARAGO PERIOD REFLECTING STRONG PERFORMANCES BY HASBRO'S BRITISH AND SPANISH UNITS 9302090006 930209 AILEEN JANUARY SAMESTORE SALES NEW YORK AILEEN INC A MANUFACTURER AND RETAILER OF WOMEN'S APPAREL SAID SAMESTORE SALES FOR JANUARY INCREASED 174 THE COMPANY ALSO SAID SAMESTORE SALES FOR THE FIRST QUARTER ENDED JAN 30 FELL 35 THE COMPANY WHICH HAD 641 MILLION IN SALES FOR THE FISCAL YEAR ENDED OCT 31 SAID IT WOULD RELEASE TOTAL SALES FIGURES AND EARNINGS FOR THE QUARTER IN EARLY MARCH AILEEN SHARES ROSE 1 YESTERDAY TO 725 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9302090005 930209 CREDIT RATINGS IMO INDUSTRIES INC LAWRENCEVILLE NJ MOODY'S INVESTORS SERVICE INC DOWNGRADED THE LONGTERM DEBT OF THIS SUPPLIER OF ANALYTICAL AND OPTICAL INSTRUMENTS TO SINGLEB2 FROM SINGLEB1 ABOUT 300 MILLION IN DEBT IS AFFECTED MOODY'S CITED IMO'S WEAK RESULTS AND REDUCED DEFENSERELATED SPENDING THE RATINGS AGENCY ADDED THAT INCREASED COMPETITION COULD ALSO HURT THE COMPANY'S PROSPECTS IMO OFFICIALS COULDN'T IMMEDIATELY BE REACHED FOR COMMENT 9302090004 930209 ENTERPRISE SMALL BUSINESS WONDERING WHAT CLINTON HAS IN MIND PRESIDENT'S FOCUS ON ENTREPRENEURS HAS POTENTIAL TO HELP OR HURT THEM BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR BETTER OR FOR WORSE MANY BUSINESS OWNERS ARE INCREASINGLY CONVINCED THAT PRESIDENT CLINTON HAS SMALL BUSINESS ON HIS MIND ENTREPRENEURS EXPECT TO FEEL THE EFFECT ON POLICIES COVERING EVERYTHING FROM ECONOMIC REVIVAL TO HEALTH CARE THEY EXPECT TO SEE A GREAT DEAL THAT THEY WON'T LIKE LAST WEEK THE PRESIDENT SIGNED A FAMILY LEAVE BILL THAT MANY SMALL BUSINESSES ASSAILED EVEN IF THEY FEEL THEY CAN COPE WITH ITS CONSEQUENCES ANY DEFICITREDUCTION PACKAGE IS LIKELY TO HIT BOTH SMALL AND LARGE COMPANIES WITH NEW TAXES THE CLINTON TEAM ALSO IS CONTEMPLATING AN INCREASE IN THE MINIMUM WAGE AND PLANNING A HEALTHCARE OVERHAUL THAT COULD COST SMALL BUSINESS BIG MONEY AT THE SAME TIME THE WHITE HOUSE IS CLEARLY ENCOURAGING EXPECTATIONS THAT A BIG ROLE AWAITS SMALL BUSINESS IN THE ECONOMIC PACKAGE MR CLINTON WILL ANNOUNCE NEXT WEEK IN HIS STATE OF THE UNION SPEECH THE ROLE OF SMALLBUSINESS ISSUES IN THIS ADMINISTRATION WILL BE VERY LARGE ABSOLUTELY SAYS GENE SPERLING DEPUTY ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY THE MAIN CRITERION THE PRESIDENT IS USING TO JUDGE THE NEED FOR AN ECONOMIC STIMULUS PROGRAM IS THE FAILURE OF JOB GROWTH PRESIDENT CLINTON IS VERY FOCUSED ON THE FACT THAT MOST OF THE JOB GROWTH HE'S TRYING TO SPUR WILL COME FROM SMALL BUSINESS MR SPERLING ADDS HE REPEATEDLY GOES BACK TO THE ISSUE OF SMALLBUSINESS EXPANSION AS WE'RE DISCUSSING OUR ECONOMIC AGENDA SMALLBUSINESS ADVOCATES SAY THAT INITIAL WORK ON SPECIFIC POLICIES BEGUN SINCE PRESIDENT CLINTON'S INAUGURATION INDICATES THAT THE IMPACT ON SMALL BUSINESS IS BEING TAKEN INTO SERIOUS CONSIDERATION IN A WIDE RANGE OF COMING PROPOSALS JOHN SATAGAJ PRESIDENT OF THE SMALL BUSINESS LEGISLATIVE COUNCIL SAYS OF MR CLINTON'S UNFOLDING DOMESTIC AGENDA IT'S LIKE I'M A KID AND CHRISTMAS IS COMING AND I CAN'T WAIT TO OPEN UP ALL THOSE PACKAGES AND SEE WHAT'S IN THEM FOR EXAMPLE DEPUTY TREASURY SECRETARY ROGER ALTMAN SAYS THAT THE PRESIDENT IS LIKELY TO PROPOSE A PLAN IN HIS FEB 17 STATE OF THE UNION SPEECH TO CONGRESS TO CUT THE CAPITALGAINS TAX RATE IN HALF FOR INVESTORS WHO LEAVE THEIR MONEY IN ELIGIBLE SMALL COMPANIES FOR AT LEAST FIVE YEARS IT'S A VERY LONGTERM INITIATIVE TO HELP NEW SMALL BUSINESSES AND GENERATE JOBS MR ALTMAN SAID IN A RECENT TELEVISION INTERVIEW THE ADMINISTRATION IS ALSO TRYING TO ADDRESS TWO OF SMALL BUSINESS'S BIGGEST COMPLAINTS A SHORTAGE OF CREDIT AND A SURPLUS OF RED TAPE LAURA TYSON CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS PLEDGES TO REVIEW BANK REGULATIONS IN AN EFFORT TO ENCOURAGE LENDING TO SMALL CONCERNS AND MR SPERLING THE WHITE HOUSE POLICY MAKER SAYS THE ADMINISTRATION IS LOOKING AT WAYS TO EASE THE REGULATORY BURDEN HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA SAYS SHE DOESN'T KNOW YET WHETHER ALL SMALL EMPLOYERS WILL BE FORCED TO PROVIDE HEALTH COVERAGE BUT ADDS THAT THE WHOLE POINT OF THE PROCESS IS TO FIGURE OUT HOW THEY CAN AFFORD TO DO SO SMALL BUSINESS WILL BE AT THE TABLE THERE'LL BE A WORKING GROUP ON SMALLBUSINESS CONCERNS SHE SAYS OUR GOAL IS TO HELP COMPANIES PROVIDE HEALTH INSURANCE AND NOT PUT THEM OUT OF BUSINESS WHETHER ALL THIS ATTENTION WILL HELP OR HURT SMALL BUSINESS ON BALANCE REMAINS TO BE SEEN THE GOOD NEWS IS THAT THE GUY IN THE WHITE HOUSE UNDERSTANDS SMALL BUSINESS AND THE IMPACT IT HAS SAYS RECENTLY RETIRED REPUBLICAN REP ANDY IRELAND OF FLORIDA WHO CHAMPIONED SMALLBUSINESS ISSUES DURING HIS 16 YEARS IN THE HOUSE HE ADDS HOWEVER THAT THE OTHER NEWS IS THERE'S A QUESTION OF WHETHER THAT UNDERSTANDING WILL TRANSLATE INTO BUSINESSFRIENDLY POLICIES AT THE LABOR DEPARTMENT OR ON THE HEALTH CARE ISSUE JOHN MOTLEY CHIEF LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE BIGGEST GROUP REPRESENTING SMALL BUSINESS SEES SOME PROSPECT FOR MODIFICATIONS OF POLICIES THAT SMALL BUSINESS OPPOSES BASED ON MR CLINTON'S RECORD AS GOVERNOR OF ARKANSAS HE SAYS I HOPE THAT SMALL BUSINESS WILL BE ASKED FOR INPUT AND THAT WE CAN MODERATE OR CHANGE OR COMPROMISE ON SOME OF THESE THINGS BUT MR MOTLEY ALSO WONDERS WHETHER PRESIDENT CLINTON WILL BE ABLE TO RESIST THE LIBERAL FORCES AROUND HIM PUSHING FOR STIFFER REGULATIONS OUR BIG QUESTION IS WHICH BILL CLINTON DO WE GET' MR MOTLEY SAYS IF PRESIDENT CLINTON HELPS SMALL BUSINESS BY EASING BANKING RULES BUT ALSO IMPOSES NEW ENVIRONMENTAL RULES AND ENERGY TAXES ON THEM THAT'S A POOR TRADE SMALLBUSINESS GROUPS SAY THAT PRESIDENT CLINTON'S STILLAWAITED CHOICE TO HEAD THE SMALL BUSINESS ADMINISTRATION WILL PROVIDE A CLUE ON HOW SERIOUS HE IS ABOUT RAISING THE PROFILE OF SMALL BUSINESS IN THE PAST PRESIDENTS USUALLY HAVE APPOINTED DEFEATED CANDIDATES FOR CONGRESS AS SBA ADMINISTRATORS PRESIDENT CLINTON NEEDS A REAL POWERBROKER FOR SMALL BUSINESS SAYS ALLEN NEECE WHOSE LOBBYING FIRM REPRESENTS SEVERAL SMALLBUSINESS ORGANIZATIONS IF SOMEONE LIKE THAT IS AT THE TABLE WHEN HILLARY CLINTON IS LOOKING AT HEALTH CARE THERE WON'T BE A PLAYORPAY SYSTEM IN WHICH BUSINESSES HAVE TO PROVIDE HEALTH INSURANCE FOR THEIR WORKERS OR PAY A FEDERAL TAX TO SUPPORT A PUBLIC SYSTEM HE SAYS IF THEY'RE AT THE MEETINGS ON TRADE SMALL BUSINESSES WILL GET MORE THAN A CONFERENCE AND A COUPLE OF BOOKS TO READ THE CLINTON ADMINISTRATION HAS ALREADY GIVEN CONCRETE EVIDENCE OF ITS ATTENTION TO SMALLBUSINESS MATTERS BY AUTHORIZING THE SBA TO USE LOANGUARANTEE FUNDS FROM THE THIRD AND FOURTH QUARTERS OF THIS FISCAL YEAR TO MEET THE SURGING DEMAND FOR ITS LOANGUARANTEE PROGRAM LENDING UNDER THE PROGRAM IS EXPECTED TO GROW TO 7 BILLION IN THE CURRENT FISCAL YEAR FROM 56 BILLION IN 1992 THE BUSH ADMINISTRATION TOOK SIMILAR ACTION TO KEEP THE POPULAR PROGRAM FROM SHUTTING DOWN SO SMALLBUSINESS OWNERS WILL HAVE TO WAIT FOR MORE MEANINGFUL CLUES IN COMING WEEKS THEY SHOULDN'T HAVE TO WAIT LONG IF SMALL BUSINESS COMES AWAY FROM THE BEGINNING OF THIS ADMINISTRATION DISAPPOINTED SAYS DEMOCRATIC SEN DALE BUMPERS OF ARKANSAS CHAIRMAN OF THE SENATE SMALL BUSINESS COMMITTEE I DON'T KNOW WHERE WE'LL GO FROM HERE 9302090003 930209 COMPUTERS APPLE BOOSTS LEVEL OF POWER IN SOME MODELS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC IS PUTTING MORE JUICE INTO ITS MACINTOSH THE CUPERTINO CALIF COMPUTER MAKER SAID IT WILL BUILD ITS MIDRANGE MACINTOSH MACHINES WITH A FAST MICROPROCESSOR BRAIN THAT WAS PREVIOUSLY AVAILABLE ONLY IN ITS MOST EXPENSIVE COMPUTERS APPLE WILL ALSO PUT COLOR SCREENS IN SOME LOWPRICE MODELS THAT NOW ONLY OFFER MONOCHROME APPLE'S MOVE TO PUSH POWER AND COLOR DOWN INTO LOWERPRICED MODELS COMES AS ITS MAIN COMPETITION MAKERS OF PCS USING INTEL CORP'S CHIPS AND MICROSOFT CORP'S BASIC SOFTWARE ARE DRIVING DOWN PRICES OF POWERFUL AND FEATURELADEN PCS WHILE MARKETSHARE WARS AMONG APPLE'S SCORES OF RIVALS HAVE RESULTED IN A FAST PACE OF NEWPRODUCT INNOVATION AND A BROAD SELECTION OF INTELBASED MACHINES APPLE HAS BEEN SLOW TO FOLLOW SUIT WITH INNOVATIONS OF ITS OWN INTELBASED PCS HAVE ALSO BEGUN THREATENING APPLE'S BIGGEST FRANCHISE EASYTOUSE BASIC SOFTWARE INEXPENSIVE PCS USING INTEL'S POWERFUL 486 CHIP AND MICROSOFT'S WINDOWS SOFTWARE WHICH EMULATES MANY OF THE USERFRIENDLY FEATURES OF A MACINTOSH HAVE BEGUN MAKING APPLE'S PERSONAL COMPUTERS LOOK UNDERPOWERED AND OVERPRICED IN RECENT MONTHS IN RESPONSE APPLE HAS RECENTLY VOWED TO STEP UP ITS PACE OF NEWPRODUCT INTRODUCTIONS SUCH AS THE ONES IT PLANS TO MAKE TODAY PRODUCT CYCLES HAVE BECOME ABSURDLY SHORT SAID SEYMOUR MERRIN PRESIDENT OF MERRIN INFORMATION SERVICES INC A MARKET RESEARCH FIRM BY THE TIME YOU GEAR UP FOR ONE PRODUCT IT BECOMES OBSOLETE BUT HE ADDED UNLESS APPLE DOES THINGS LIKE THIS THEY ARE GOING TO GET KILLED APPLE SAID IT WILL UNVEIL TODAY AND BEGIN SELLING IMMEDIATELY A LINE OF MIDPRICED COMPUTERS THAT USE MOTOROLA INC'S 68040 MICROPROCESSOR THAT CHIP HAS ONLY BEEN AVAILABLE IN APPLE'S QUADRA MACHINES WHICH COST THOUSANDS OF DOLLARS MORE THAN APPLE'S NEW MIDPRICE SYSTEMS WHOSE SUGGESTED RETAIL PRICES RANGE FROM 1900 TO 4400 APPLE AIMS TO MAKE ITS COMPUTERS' NAMES MORE USERFRIENDLY AS WELL BY REPLACING THEIR OLD MONIKERS SOME OF WHICH WERE LETTERS AND NUMBERS WITH THE NAME CENTRIS APPLE SAID IT WILL ALSO BEGIN SELLING COLORSCREEN VERSIONS OF ITS MOST BASIC MACINTOSH THE CLASSIC AND OF A VERSION OF ITS NOTEBOOKSIZE POWERBOOK COMPUTER APPLE ALSO WILL BEGIN SELLING TWO NEW LASER PRINTERS WHICH ARE CAPABLE OF PRODUCING BETTER GRAPHICS THAN PREVIOUS MODELS AT SUGGESTED RETAIL PRICES OF 820 TO 2100 DEPENDING ON MODEL AND FEATURES APPLE'S AGGRESSIVENESS IN SELLING UPGRADED MACINTOSH MODELS IT HAS BEGUN INTRODUCING NEW PRODUCTS AT A PACE SEVERAL MONTHS FASTER THAN BEFORE HAS SERVED TO BROADEN ITS PRODUCT LINE PARTLY AS A RESULT SOME RECENTLY INTRODUCED PRODUCTS HAVE BEEN IN SHORT SUPPLY OR SIMPLY UNAVAILABLE AT SOME DEALERS OTHER MODELS HAVE QUICKLY BEEN SUCCEEDED AFTER A FEW MONTHS BY NEWER MORE POWERFUL AND CHEAPER MODELS THE COMPANY SAID IT EXPECTS TO ANNOUNCE TODAY IT HAS SHIPPED ITS 10 MILLIONTH MACINTOSH 9302090002 930209 INDUSTRY FOCUS JAPANESE DEPARTMENT STORES FALL FROM 1980S HEYDAY SOBERED CONSUMERS DISCOUNT RIVALS FORCE CHAINS TO RETHINK LUXE STRATEGY BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SELLING WAS SUCH A BREEZE DURING THE ROARING 1980S THAT ISETAN CO A MAJOR JAPANESE DEPARTMENTSTORE CHAIN STOCKED 2500 CROCODILESKIN PURSES IN ITS CASUAL ACCESSORIES CORNER AND PEOPLE BOUGHT THEM BUT NO MORE OVER THE PAST YEAR ISETAN HAS WATCHED ITS SALES SLIDE THEN SLIDE SOME MORE THINGS HAVE GOTTEN SO BAD THAT A LOWPRICE SUPERSTORE CHAIN HAS STARTED LOOKING AT ISETAN SAYING THAT IT MIGHT BUY A STAKE IN THE RITZY RETAILER MOST ANALYSTS SAY THE DISCOUNTER WOULD QUICKLY OPT TO TAKE ISETAN DOWNSCALE ISETAN IS JUST ONE VICTIM OF A CONCUSSION SHAKING JAPAN'S WORLDRENOWNED RETAILING INDUSTRY TO ITS CORE LONG KNOWN FOR RETAILING EXCELLENCE JAPAN'S DEPARTMENT STORES ARE BEING THRASHED BY SLOWING SALES AND CUTRATE COMPETITORS THE DEPARTMENT STORES' SALES FELL 33 IN 1992 TO 952 TRILLION YEN 764 BILLION THE FIRST ANNUAL DECLINE IN 27 YEARS ANALYSTS SAY THEY DON'T EXPECT REVENUE TO PICK UP UNTIL THIS FALL AT THE EARLIEST IT'S A CRITICAL TIME FOR US SAYS YOSHIO WATANABE A GENERAL MANAGER FOR TOBU DEPARTMENT STORE CO WHICH LAST YEAR OPENED ASIA'S BIGGEST STORE AN 83000SQUAREMETER 99600SQUAREYARD SHOWCASE IN NORTHERN TOKYO IF WE DON'T TAKE ANY ACTION DEPARTMENT STORES WILL CEASE TO EXIST SURVIVAL WON'T BE EASY BECAUSE JAPAN'S DEPARTMENT STORES MUST TACKLE STRUCTURAL PROBLEMS THEY'VE NEGLECTED FOR DECADES RENTS ARE SKYHIGH IN PRIME CITY LOCATIONS AND BOWING ELEVATOR ATTENDANTS PAD THE PAYROLLS WHAT'S MORE THEIR LOWRISK HIGHCOST WAY OF DOING BUSINESS DEPRESSES THEIR PROFIT MARGINS FAR BELOW THOSE OF TYPICAL US DEPARTMENT STORES JUST A FEW YEARS AGO JAPAN'S RETAIL KINGS SEEMED INVINCIBLE ENRICHED BY THE GAUDY CONSUMPTION OF THE LATE 1980S WHEN SALES ROSE MORE THAN 7 ANNUALLY JAPANESE DEPARTMENT STORES CONSIDERED SCOOPING UP AILING US BLUE CHIPS LIKE SAKS FIFTH AVENUE AND BLOOMINGDALES BACK HOME THEY SPLURGED ON MARBLE FLOORS AND POSH POWDER ROOMS INSTORE MUSEUMS WERE ALL THE RAGE TODAY THAT'S ALL A BIT RICH FOR JAPAN'S SOBERED CONSUMERS PEOPLE ARE WILLING TO HUNT FOR BARGAINS AT CHEAPER RETAILERS LIKE ITOYOKADO OR UPSTART SPECIALTY STORES SUCH AS TOYS R US OF THE US FOR THE FIRST TIME DISCOUNTERS AND FACTORY OUTLETS ARE EMERGING NATIONWIDE FORCING DEPARTMENT STORES TO HOLD SALES OF THEIR OWN I WAS TOLD THAT THE SAME THINGS ARE CHEAPER THIS YEAR THAN LAST YEAR SAYS AYAKO AMANO A STEEL COMPANY EMPLOYEE AS SHE STRIDES OUT OF MITSUKOSHI LTD'S FLAGSHIP TOKYO STORE WITH THREE BAGS OF SWEATERS SHE BOUGHT ON SALE BUT HIDEKO KAWAI ANOTHER MITSUKOSHI SHOPPER ISN'T FOOLED WHAT'S EXPENSIVE IN HERE IS REALLY EXPENSIVE SAYS THE 40SOMETHING HOMEMAKER STROKING HER FUR COAT WITH HER MANICURED FINGERS LIKE MUCH OF THE CROWD THESE DAYS MS KAWAI SAYS SHE STILL ENJOYS VISITING DEPARTMENT STORES BUT STOPPING BY THE FUR SECTION IS OUT OF THE QUESTION SHE LIMITS HER PURCHASE TO A COUPLE OF PASTRIES FOREIGN MAKERS OF LUXURY ITEMS ARE DISMAYED THAT JAPANESE HAVE STOPPED LINING UP TO PURCHASE THEIR PRICEY GOODS AFTER BLAMING MITSUKOSHI ITS PRINCIPAL DISTRIBUTOR FOR ITS RECENT DROP IN JAPANESE SALES TIFFANY & CO HAS BROADENED ITS MARKETING CAMPAIGN BY OPENING UP JEWELRY BOUTIQUES IN OTHER DEPARTMENT STORES AS WELL THE MAIN REASON FOR THE STORES' SWOON LIES IN THE INDUSTRY'S TRADITIONAL CONSIGNMENT SYSTEM THE STORES NEITHER BUY NOR EVEN SELECT MUCH OF THE MERCHANDISE THEY DISPLAY INSTEAD THEY ARE ESSENTIALLY REALESTATE OPERATIONS THEY RENT SPACE TO INDIVIDUAL APPAREL COMPANIES AND THESE SUPPLIERS SELECT THE PRODUCTS DISPATCH SALES STAFF AND EVEN TAKE BACK UNSOLD ITEMS DEPARTMENT STORES MAKE MONEY LARGELY BY TAKING A CUT OF THE TENANTS' SALES ON THE SURFACE IT SOUNDS LIKE A GREAT DEAL FOR THE STORES THE SUPPLIERS GET STUCK WITH ANY SLOWSELLING PRODUCTS AND WRITE THE PAYCHECKS FOR NEARLY HALF OF THE STORES' OMNIPRESENT SALES CLERKS BUT THAT BUFFER ADDS TO THE COST OF THE GOODS THE STORES SELL AND TO KEEP THE PRODUCT MOVING THEY HAVE TO SHAVE THEIR MARGINS RAZORTHIN THEIR HIGH PRICES ALSO MAKE THEM VULNERABLE TO COMPETITION JAPAN'S DEPARTMENT STORES ARE THE MOST BACKWARD AMONG RETAILERS IN THE NATION SAYS TAKAYUKI SUZUKI AN ANALYST FOR MERRILL LYNCH & CO'S TOKYO UNIT MR SUZUKI BELIEVES THEY MAY HAVE TO LEARN A FEW LESSONS FROM COMPANIES LIKE ITO YOKADO WHICH IS MAKING MONEY DESPITE THE RECESSION ITO YOKADO CUTS COSTS BY BUYING DIRECTLY FROM MANUFACTURERS AMONG OTHER METHODS JAPAN'S RETAIL PALACES WILL LIKELY REMAIN UNDER SIEGE UNTIL THEY UPDATE THEIR OPERATIONS IF SALES DROP ONLY 5 STORES MIGHT EVEN TUMBLE OVER IN OUR INDUSTRY SAYS HAJIME SASAKI A MITSUKOSHI MANAGER HIS COMPANY HAS REASON TO WORRY FOR THE YEAR ENDING FEB 28 MITSUKOSHI EXPECTS PARENT COMPANY PRETAX PROFIT TO DROP 85 TO 18 BILLION YEN 145 MILLION ON A 12 DECLINE IN SALES TO 865 BILLION YEN 695 BILLION BUT SOME ANALYSTS EXPECT MITSUKOSHI'S SALES TO FALL BY AS MUCH AS 3 AND SAY THE COMPANY MAY POST AN OPERATING LOSS FOR THE FIRST TIME IN EIGHT YEARS MR SASAKI SAYS MITSUKOSHI IS TRYING TO MAKE ITSELF MORE PROFITABLE BY PURCHASING MORE MERCHANDISE DIRECTLY BUT ADDS THAT IT WILL TAKE TIME FOR MITSUKOSHI'S BUYERS TO GAIN EXPERTISE SANYO SHOKAI LTD AN APPAREL MAKER THAT HAS 4000 EMPLOYEES WHO WORK AS SALES CLERKS IN DEPARTMENT STORES SAYS STORES CAN CUT COSTS BY AS MUCH AS 30 IF THEY BUY INVENTORY THEMSELVES MITSUKOSHI'S RIVALS ARE BECOMING MORE THRIFTY TOO STORES ARE STARTING TO CHARGE FOR DELIVERING PARCELS A SERVICE THAT WAS GRATIS FOR YEARS AND ARE CUTTING BACK ON FANCY WRAPPING SOGO CO AN OSAKABASED CHAIN HAS CANCELED EXPANSION PLANS SEIBU DEPARTMENT STORES LTD A TOKYO CHAIN SAYS IT'S HIRING THREE EXECUTIVES FROM OTHER COMPANIES IN THE INDUSTRY TO ADVISE IT ON HOW TO RESTRUCTURE ONE THING DEPARTMENT STORES COULD DO IS FOCUS MORE ON PICKING MONEYMAKING PRODUCTS AND NARROWING THE RANGE OF ITEMS THEY STOCK SAYS MIKE ALLEN AN ANALYST FOR BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD THE STORES CALLED HYAKKATEN OR HUNDREDPRODUCT SHOPS STOCK EVERYTHING FROM SALTWATER AQUARIUMS FULL OF FISH TO TWOMILLIONYEN PERSIAN CARPETS ALMOST ALL HAVE LARGE FOOD SECTIONS THEY WANT TO SELL EVERYTHING TO EVERYONE SAYS MR ALLEN THEY SHOULDN'T BE SELLING GROCERIES 9302090001 930209 TRWAAISIEMENS TEAM HAS LOW BID ON RAIL CARS A TEAM COMPRISING CLEVELANDBASED TRW INC BALTIMORE'S AAI CORP AND A UNIT OF GERMANY'S SIEMENS AG SUBMITTED THE LOWEST OF FOUR TEAM BIDS FOR A CONTRACT TO BUILD RAIL CARS FOR THE LOS ANGELES COMMUTER SYSTEM TRW AAI AND THE SIEMENS DUEWAG CORP UNIT SUBMITTED A 223 MILLION PROPOSAL TO BUILD 74 RAIL CARS FOR THE CITY'S PROPOSED GREEN LINE SYSTEM ACCORDING TO THE LOS ANGELES COUNTY TRANSPORTATION COMMISSION LOS ANGELESBASED NORTHROP CORP AND BOMBARDIER INC MONTREAL SUBMITTED THE SECONDLOWEST BID 236 MILLION TOWARD THE HIGH END OF THE BIDDING AT 272 MILLION WAS A TEAM MADE UP OF MORRISON KNUDSEN CORP BOISE IDAHO AND TWO CALIFORNIABASED DEFENSE CONTRACTORS LOCKHEED CORP AND GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT ROCKWELL INTERNATIONAL CORP AND A UNIT OF TOKYOBASED SUMITOMO CORP SUBMITTED THE HIGHEST BID 303 MILLION BID PRICE DETERMINES 35 AND TECHNICAL CONSIDERATIONS ANOTHER 35 OF THE DECISION UNDER THE COUNTY'S CONTRACT CRITERIA DOMESTIC CONTENT AND THE INCLUSION OF DISADVANTAGED BUSINESSES OWNED BY MINORITIES OR WOMEN MAKE UP 15 AND THE DEVELOPMENT OF ADVANCED PRODUCTS ANOTHER 15 BIDDING ON THE RAIL CONTRACT WAS REOPENED LAST YEAR AFTER THE TRANSPORTATION COMMISSION REVERSED AN AWARD TO SUMITOMO THAT HAD SET OFF JAPANBASHING AND AMERICA FIRST DEMANDS NEW BIDS MUST MEET A 60 DOMESTICCONTENT REQUIREMENT WITH EXTRA POINTS AWARDED FOR TEAMS EXCEEDING THE MINIMUM A COMMISSION SPOKESMAN SAID 9302090160 930120 RULE OF LAW WHEN SENSITIVITY TRAINING IS THE LAW BY WALTER OLSON IF THE SENATE WERE AN ORDINARY WORKPLACE BY NOW THE MANAGEMENT PROBABLY WOULD HAVE ASKED SENATORS AND STAFF TO ATTEND A SEMINAR ON SEXUAL HARASSMENT THE MEN WOULD BE WARNED NOT TO ACT LIKE WOLVES AND THE WOMEN WOULD BE URGED TO SPEAK OUT ABOUT INSENSITIVE TREATMENT IF THIS EVER HAPPENS IT WILL BE INTERESTING TO HEAR FROM CAROL MOSELEY BRAUN A NEW SENATOR FROM ILLINOIS SEN BRAUN WHO OWES HER SEAT IN PART TO VOTER ANGUISH OVER THE ANITA HILL CASE WAS EXPECTED TO BE A LEADING VOICE ON SEXUAL HARASSMENT BUT THEN THE CHICAGO SUNTIMES QUOTED UNNAMED WOMEN ON HER STAFF AS SAYING THAT HER CAMPAIGN MANAGER AND CURRENT DATE KGOSIE MATTHEWS HAD TREATED THEM HARSHLY AFTER THEY REBUFFED HIS ADVANCES TO SEN BRAUN THE ANONYMOUS CHARGES RECALLED THE EXCESSES OF MCCARTHYISM I'M OLD ENOUGH TO REMEMBER THE DAYS WHEN SOMEBODY COULD BE ACCUSED OF BEING A COMMUNIST WITH NOBODY COMING FORWARD SHE SAID I'M OLD ENOUGH TO REMEMBER WHAT IT DID TO PEOPLE'S LIVES ACTUALLY IT DOESN'T TAKE A VERY LONG MEMORY TO RECALL WHAT HAPPENED TO CLARENCE THOMAS WHOSE ACCUSER ALSO SOUGHT ANONYMITY AT FIRST ONE HOPES A SIMILAR SENSE OF BALANCE WILL EMERGE IN THE SENSITIVITY TRAINING SESSIONS NOW SWEEPING THE WORKPLACE USUALLY COUCHED AS EFFORTS TO HEAD OFF SEXUAL HARASSMENT BEFORE IT STARTS THESE SEMINARS HAVE MOVED FROM ACADEMIA WHERE THEY FIRST CAUGHT ON BIG TO THE GENERAL CORPORATE WORLD AND BEYOND THE WHOLE NEW YORK STATE ASSEMBLY GOT SENSITIZED EN MASSE A FEW WEEKS AGO EVEN WHEN DONE SEMIVOLUNTARILY AS A SIGN OF GOOD FAITH BY COMPANIES WISHING TO IMPROVE THEIR POSITION IN FUTURE LAWSUITS THESE PROGRAMS RISK STIRRING UP MORE TENSION THAN THEY RESOLVE BUT IN CONNECTICUT A STATE WHOSE COMPULSORYCHAPEL TRADITION GOES WAY BACK THINGS ARE NOT EVEN NOMINALLY VOLUNTARY ANYMORE UNDER A LAW BEING HAILED AS A MODEL ELSEWHERE EMPLOYERS WITH 50 OR MORE EMPLOYEES ARE COMPELLED TO ENROLL THEIR MANAGERS IN SENSITIVITY TRAINING ON COMPANY TIME ALTHOUGH SOME TRAINERS ARE RELATIVELY DETACHED AND NEUTRAL IN APPROACH OTHERS PURSUE AN IDEOLOGICAL MISSION A NETWORK OF HOT LINES CRISIS CENTERS AND ADVOCACY GROUPS MANY WITH CLOSE TIES TO PLAINTIFFS' LAWYERS HAS EMERGED TO ADVISE PEOPLE TROUBLED BY MANIFESTATIONS OF SEX IN THE WORKPLACE THEIR UNDERLYING PHILOSOPHY IS EXEMPLIFIED BY SEXUAL HARASSMENT ON THE JOB A SELFHELP BOOK FROM NOLO PRESS THE AGGRIEVED EMPLOYEE CAN TAKE A SERIES OF ESCALATING STEPS THE VOLUME NOTES FOR EXAMPLE IF YOU WERE MADE UNCOMFORTABLE BECAUSE OF JOKES PINUPS OR CARTOONS POSTED AT WORK CONFISCATE THEM OR AT LEAST MAKE COPIES IF AN ANTIWOMAN JOKE MAKES THE ROUNDS OF THE OFFICE TRY TO LOOK FOR A LINKAGE TO SPECIFIC COMPENSABLE HARM SUCH AS BY FINDING AMONG THE CHAIN OF JOKEREPEATERS A MANAGER WHO RECOMMENDS PROMOTIONS A TABLE SUITED FOR COPYANDCLIP USE EXPLAINS WITH CHARMING DIRECTNESS IN AN INTERVIEW IN THE NEW YORK TIMES A CONNECTICUT RAPECRISISCENTER OFFICIAL NAMED LORNA BROWN FLYNN OFFERS SIMILAR ADVICE KEEP SECRET NOTES SURFACE WITH A WITNESS WHEN YOU STAGE A CONFRONTATION WITH THE OFFENDER DEMAND YOUR PERSONNEL FILES AND BRING A WITNESS THEN TOO IF A COMPANY SUGGESTS INHOUSE COUNSELING TO RESOLVE THE PROBLEM FORGET IT MS FLYNN SAYS USUALLY THAT'S INTENDED TO GET YOU TO DROP THE COMPLAINT HER GROUP LIKE THE STATE'S 12 OTHER RAPECRISIS CENTERS PLANS TO OFFER EMPLOYERS TRAINING SERVICES UNDER THE NEW LAW CHRISTINA HOFF SOMMERS WHO HAS ATTENDED SENSITIVITY SESSIONS AS A PROFESSOR AT CLARK UNIVERSITY SAYS MOST MEN AND WOMEN IN A WORKPLACE CAN USUALLY AGREE ON CORE BEHAVIOR THEY VIEW AS UNACCEPTABLE SOME TRAINERS THOUGH TAKE THE MOST THINSKINNED CHRONICALLY OFFENDED PERSON IN A GROUP AS THE NORM AND THAT GIVES THEM A LOT TO DO AS PREVIOUSLY ACCEPTED BEHAVIOR GETS REDEFINED AS INSENSITIVE AUDIENCE MEMBERS TEND TO GO ALONG YOU REALLY DON'T WANT TO OBJECT SHE SAYS THERE ARE THESE ENTHUSIASTIC FACILITATORS MAINLY YOU JUST SIT THERE AND TAKE IT IT'S PART OF BEING POLITE FOR ALL THE TALK OF DIVERSITY SAYS CHARLES SYKES AUTHOR OF A NATION OF VICTIMS THE RESULT CAN BE AN INTOLERANCE OF DIVERSITY OF POINTS OF VIEW IN WHICH CHALLENGES FROM THE AUDIENCE GET DISMISSED AS BACKLASH IF FROM MEN AND DENIAL IF FROM WOMEN LYNN CHU A NEW YORKER WHO EXAMINED TRAINING PROPOSALS AS A MEMBER OF A FEDERAL GRANT PANEL SAYS THAT IN SOME PROGRAMS SHE REVIEWED WOMEN WHO DID NOT PERCEIVE THEMSELVES TO BE HARASSED WERE URGED TO RECOGNIZE THEIR ERROR AS VICTIMS OF INTERNALIZED SEXISM IN MY OPINION IT CAN VERGE ON INDOCTRINATION MOST BUSINESSES OF COURSE WANT A PROCESS THAT MINIMIZES LEGAL TROUBLE AND BRINGS EMPLOYEES TOGETHER NOT ONE THAT RUBS SALT IN THE FRICTIONS THAT ARE INEVITABLE WHEN THE SEXES WORK TOGETHER BIG COMPANIES CAN AND HAVE SET UP TRAINING PROGRAMS THAT AVOID THE OBVIOUS DANGERS MAYBE THAT'S WHY CONNECTICUT'S MAIN BUSINESS ASSOCIATION WHICH CONDUCTS TRAINING ITSELF SIGNED OFF ON THE BILL GROUPS THAT DO TRAINING WERE THE CHIEF LOBBYISTS FOR THE BILL AS ITS HOUSE SPONSOR ARTLESSLY NOTED WHEN ASKED ABOUT THE AVAILABILITY OF SEMINARS AS I STATED EARLIER REP JOSEPH ADAMO SAID IN MOST CASES IT IS THE GROUPS THAT ARE ADVOCATES FOR THIS PARTICULAR LEGISLATION WHO DO THE TRAINING SMALLER EMPLOYERS TREAD A RISKIER PATH NOT EVERY 50PERSON FIRM CAN AFFORD TO BRING IN ITS OUTSIDE LAWYER FOR AN AFTERNOON EVERY TIME A NEW MANAGER GETS HIRED UNDER THE CONNECTICUT LAW INCUMBENT MANAGERS CAN ALL BE TRAINED IN A BATCH BUT NEW MANAGERS HAVE TO GET THEIR DOSE WITHIN THEIR FIRST SIX MONTHS ON THE JOB A NICE TOUCH IS THAT WHILE MANAGERS TRAINED SINCE OCTOBER 1991 ARE CONSIDERED REEDUCATED FOR GOOD THOSE TRAINED BEFORE THAT DATE ARE GIVEN NO CREDIT REPORTEDLY ON THE THEORY THAT SUCH TRAINING IS OF NO USE IN THE WORLD AFTER ANITA HILL SMALL EMPLOYERS ARE OF COURSE LIKELY TO LOOK FOR LOWCOST TRAINING METHODS TROUBLE IS GROUPS WILLING TO OFFER LOW OR NOCOST TRAINING TEND TO BE THOSE ON A CRUSADE AND THE KICKER IS THAT THE STATE HUMAN RIGHTS COMMISSION HAS BROAD AUTHORITY TO ENFORCE THE RULES MEANING THAT AT SOME POINT IT COULD BEGIN DECLARING WHO IS QUALIFIED TO TRAIN AND HOW MANDATED BENEFITS ARE ENOUGH OF A STRAIN IF BUSINESS ISN'T CAREFUL IT COULD WIND UP WITH MANDATED ATTITUDE ADJUSTMENT MR OLSON OF CONNECTICUT IS A FELLOW AT THE MANHATTAN INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR SENSITIVITY MANDATES INSENSITIVE TO BUSINESS WSJ FEB 9 1993 9301200186 9302090149 930115 THE AMERICAS NAFTA CRITICS HAVE IT ALL WRONG ON MEXICAN LABOR LAW BY MARSHALL J BREGER IF TRUTH IS THE FIRST CASUALTY OF POLITICS THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA WAS SEVERELY WOUNDED DURING THE RECENT ELECTION CAMPAIGN THE SPECTER OF LAX ENVIRONMENTAL STANDARDS AND UNENFORCED WORKER LABOR LEGISLATION IN MEXICO WAS RAISED AS AN EXCUSE FOR REOPENING THE CAREFULLY CRAFTED 2000PAGE TREATY ITS TERMS SHOULD BE BROADENED ARGUED CRITICS OF MEXICAN DOMESTIC POLICY TO INCLUDE A WHOLESALE INTRUSION INTO MEXICO'S LEGISLATIVE STANDARDS IN THE RELATIVE TRANQUILITY OF THE TRANSITION SOME CLARITY REGARDING NAFTA HAS EMERGED IT NOW SEEMS THAT BILL CLINTON SEEKS NEITHER TO REOPEN THE TREATY NOR TO DICTATE DOMESTIC POLICY TERMS TO THE MEXICANS NEVERTHELESS THOSE IN THE US WHO OPPOSE PASSAGE OF NAFTA CONTINUE TO HARP ON A PERCEIVED DEFICIT OF MEXICAN LAW REGARDING WORKERS' RIGHTS AS COMPARED WITH US LABOR LAW NO ONE DISPUTES THAT THERE ARE DIFFERENCES IN OUR LAWS BOTH CONCEPTUALLY AND IN PRACTICE IN THE US WE HAVE A DIVERSE NUMBER OF STATE AND FEDERAL LABOR LAWS ROOTED IN OUR PRINCIPLES OF FREE SPEECH PRESS AND ASSEMBLY TOGETHER THEY FORM A HIGHLY ARTICULATED BODY OF WORKERS' RIGHTS HOWEVER IN CONCEPTION AND APPLICATION US LABOR LAW IS A SYSTEM OF IMPOSED LAW WHERE COURTS ADJUDICATE RIGHTS AND OBLIGATIONS AND EFFORTS AT MEDIATION AND INFORMAL RESOLUTION ARE RELEGATED TO A SECONDARY ROLE THE SITUATION IS COMPLETELY DIFFERENT IN MEXICO WHERE AN ABUNDANCE OF LAWS EXISTS BUT A SYSTEM OF INDIVIDUALIZED NEGOTIATIONS PREDOMINATES IN MEXICO THE COMMITMENT TO WORKERS' RIGHTS IS ROOTED IN ITS 1917 CONSTITUTION CRAFTED IN AN AGE OF SOCIAL UPHEAVAL THE MEXICAN CONSTITUTION IS WRITTEN WITH ABSTRACT GUIDING PRINCIPLES SUCH AS IMPROVING THE LIVING AND WORKING CONDITIONS OF MEXICAN WORKERS AND HONORING WORKERS' INHERENT LIBERTY AND DIGNITY IN ADDITION TO ESTABLISHING RIGHTS FAMILIAR TO US SUCH AS FREEDOM OF ASSOCIATION THE RIGHT TO STRIKE WORKPLACE HEALTH AND SAFETY MINIMUM WAGE AND MAXIMUM HOURS OF WORK THE MEXICAN CONSTITUTION ALSO GUARANTEES ANNUAL LEAVE PROFIT SHARING EMPLOYMENT SECURITY WORKER TRAINING AND MANY OTHER BENEFITS AND PROTECTIONS THESE BENEFITS ARE IN TURN EXPANDED IN THE CODIFIED FEDERAL LABOR LAW WHICH IS ENFORCED THROUGHOUT MEXICO BY FEDERAL AND STATE BOARDS OF CONCILIATION AND ARBITRATION ONE OF THE MAIN PROBLEMS WITH WORKERS' RIGHTS LAWS IN MEXICO IS THAT THERE ARE SIMPLY TOO MANY IN OTHER WORDS THE EMPLOYMENT CONTEXT IS OVERREGULATED A SUPERFLUITY OF PROTECTIONS HAS CREATED A PREDICTABLE RESULT EVERYONE WORKER UNION EMPLOYER GOVERNMENT IGNORES SOME OF THE LAWS SOMETIMES ALL IN DIFFERENT SPECIFIC SITUATIONS BUT ALL TO CIRCUMVENT THE DEAD HAND OF OVERREGULATION FOR EXAMPLE A UNION CUTS ILLEGAL DEALS WITH EMPLOYERS TO AVOID WORK DELAYS INHERENT IN MEXICAN STRIKE LAWS EMPLOYERS FACED WITH AN UNMEETABLE STANDARD TO PROVE JUST CAUSE PAY SEVERANCE TO BE RID OF THIEVING EMPLOYEES EMPLOYEES AWARE OF THE MATERIAL BENEFITS OF BEING IN CERTAIN LABOR CLASSIFICATIONS KICK BACK SALARY TO UNION OFFICIALS GOVERNMENT OFFICIALS FRUSTRATED BY CORRUPTION AND BUREAUCRACY TURN A BLIND EYE AS CAN BE EXPECTED PARTICIPANTS IN THE MEXICAN ECONOMY OFTEN RESORT TO EXTRALEGAL SOLUTIONS IN RESPONSE TO THE BURDENS OF OVERREGULATION FUELING THE UNDERGROUND ECONOMY SOON TO BE 25 OF THE WORK FORCE AT THE CORE OF MOST LABOR LAWS IS THE WORKERS' RIGHT TO STRIKE IN MEXICO THIS RIGHT IS DEFENDED BY THE CONSTITUTION AND IS FURTHER DEFINED AND DELINEATED IN THE FEDERAL LABOR LAW TO BE LEGAL A STRIKE MUST HAVE A LAWFUL OBJECTIVE SUCH AS SEEKING TO ACHIEVE A BALANCE BETWEEN THE WORKERS' AND THE EMPLOYER'S RIGHTS MODIFYING A LABOR AGREEMENT OR PARTICIPATING IN A SECONDARY STRIKE IN THEORY THE RIGHT TO STRIKE IS MORE BROADLY PROTECTED IN MEXICO THAN IN THE US FOR EXAMPLE ONCE A STRIKE IS RECOGNIZED IN MEXICO A PRIVATE EMPLOYER CANNOT CONTINUE OPERATIONS DURING THE STRIKE THE ISSUE OF STRIKER REPLACEMENTS TEMPORARY OR PERMANENT SIMPLY DOES NOT COME UP HOWEVER A SIGNIFICANT DIFFERENCE FROM US LAW PROVIDES SOMETHING OF A COUNTERWEIGHT A LABOR ORGANIZATION MUST GIVE ADVANCE NOTICE OF ITS INTENTION TO STRIKE BY FILING A PETITION WITH THE APPROPRIATE CONCILIATION AND ARBITRATION BOARD THIS IMPOSES A MANDATORY NEGOTIATION TO RECONCILE THE DIFFERENCES BETWEEN THE PARTIES SERVING A PURPOSE ONLY SOMEWHAT ANALOGOUS TO VOLUNTARY MEDIATION UNDER THE AUSPICES OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE IN THE US THIS HEIGHTENED FOCUS ON COOPERATION AND CONSULTATION MAY REDUCE THE INCIDENCE OF STRIKES THOUGH CONCILIATION HOWEVER THIS PROCESS OF INDIVIDUATED NEGOTIATIONS RATHER THAN THE APPLICATION OF GENERAL RULES OF CONDUCT GREATLY INCREASES GOVERNMENT INTERFERENCE IN LABOR RELATIONS THE MEXICAN SYSTEM THUS ABETS THE FORCES OF STABILITY BUT DOES SO AT A MATERIAL COST LOST IS A MORE VIGOROUS UNFETTERED LABOR MARKETPLACE IN WHICH INDEPENDENT UNIONS FREELY NEGOTIATE WITH EMPLOYERS AND ENFORCE THEIR CONTRACTS WITH STRIKES UNDERTAKEN WITHOUT WAITING FOR GOVERNMENT APPROVAL EMPLOYERS AND EMPLOYEES ARE OFTEN BOUND BY RESTRICTIONS THAT ENDANGER THE JOB OF THE LATTER BY UNDULY COMPLICATING THE LIFE OF THE FORMER BUT MEXICO'S STELLAR ECONOMIC TEAM IS MUCH MORE AWARE OF THIS THAN ANY OUTSIDE OBSERVER PRESIDENT CARLOS SALINAS DE GORTARI AND FINANCE MINISTER PEDRO ASPE ARE HARD AT WORK TRYING TO FIND WAYS TO PURGE THE INEFFICIENCIES FROM MEXICAN LABOR LAW THE POINT IS THAT MEXICO HAS A COMPREHENSIVE SYSTEM OF LABOR LAW AND IS APPLYING IT AS ITS OWN ECONOMIC SOCIAL AND POLITICAL REALITIES PERMIT THERE ARE SUBSTANTIAL DIFFERENCES IN THE WAYS IN WHICH THE US AND MEXICO PROTECT FUNDAMENTAL WORKERS' RIGHTS INDEED BASED ON MY OBSERVATIONS AND CONVERSATIONS WITH MEXICAN GOVERNMENT OFFICIALS AND BUSINESSMEN I WOULD ARGUE THAT MEXICO GOES FURTHER IN ITS EMBRACE OF A SOCIAL CHARTER THAN MARKET FORCES ALONE WOULD DICTATE AND THAT ECONOMIC MODERNIZATION WILL LEAD TO A REEVALUATION OF THE FEDERAL LABOR LAW TOWARD GREATER EMPLOYER FLEXIBILITY WHETHER THIS PREDICTION IS TRUE OR NOT IT CANNOT BE DENIED THAT MEXICO'S DEDICATION TO WORKERS' RIGHTS IS BOTH REAL AND FOUNDED ON DEEPLY FELT FUNDAMENTAL PRINCIPLES FIRMLY ROOTED IN ITS HISTORY ITS CONSTITUTION AND ITS FEDERAL LABOR LAW WHATEVER POSITION ONE TAKES ON THE ULTIMATE MERITS OF NAFTA THE WHOLESALE CRITIQUE OF MEXICAN LABOR LAWS IS SURELY A MISPLACED POLITICAL CANARD UNLESS THAT CRITIQUE RECOGNIZES THAT WHAT WE PERCEIVE AS FAILINGS ARE OFTEN CREATIVE RESPONSES TO A SYSTEM CHOKED BY LAWS AND REGULATIONS THAT SERVE OFTEN TO UNDERMINE THE VERY GOALS THEY WERE DESIGNED TO REACH MR BREGER IS SOLICITOR US DEPARTMENT OF LABOR SEE RELATED LETTER LETTERS TO THE EDITOR WORKERS ARE RIGHT TO FEAR NAFTA WSJ FEB 9 1993 9301150136 9302090085 930121 COUNTERPOINT HIGH WAGES AND NAFTA CAN'T COEXIST BY JONATHAN TASINI PRESIDENT BUSH'S SIGNING OF THE NORTH AMERICAN FREE TRADE AGREEMENT PUTS PRESIDENT CLINTON IN A QUANDARY THAT HE APPARENTLY DOES NOT FULLY RECOGNIZE DURING HIS CAMPAIGN FOR THE PRESIDENCY CANDIDATE CLINTON ANNOUNCED HIS QUALIFIED SUPPORT FOR NAFTA HE ALSO DECLARED HIS DESIRE TO CREATE A HIGHWAGE ECONOMY IN THE US IT'S NOW TIME FOR HIM TO UNDERSTAND THE TWO CONCEPTS CAN'T EXIST SIDE BY SIDE THE NEW PRESIDENT APPARENTLY HAS MISSED THE UNDERLYING RATIONALE FOR NAFTA LOW WAGES IN THE US AND MEXICO TENS OF THOUSANDS OF AMERICAN WORKERS MANY OF WHOM HAVE THE HIGHWAGE JOBS MR CLINTON TALKS ABOUT ARE FACING INCREASING PRESSURE TO ACCEPT LOWER WAGES AND BENEFITS LEST THEIR JOBS JOIN THE EXODUS TO THE POORER LOWWAGE MEXICAN BORDER WHETHER FOR THE SAKE OF COMPETITIVENESS OR INCREASED PROFITS THE SUCKING SOUND TO THE SOUTH AS ROSS PEROT COLORFULLY PUT IT IS EXERTING A DOWNWARD PULL ON THE AMERICAN STANDARD OF LIVING SO IF ONE PILLAR OF MR CLINTON'S ECONOMIC PLATFORM IS NAFTA WHERE ARE THE NEW ADMINISTRATION'S HIGHWAGE JOBS GOING TO COME FROM TO CREATE THE SECOND PILLAR THE PRESIDENT AND HIS ECONOMIC ADVISERS SEEM TO HOPE THE FUTURE LIES IN INCREASING TRAINING AND EDUCATION FOR EVERY AMERICAN SO THAT EACH WILL THEN HAVE THE HIGH SKILLS TO COMPETE ONEONONE WITH WORKERS LIVING ANYWHERE IN THE GLOBAL ECONOMY CERTAINLY SOME AMERICANS WILL BENEFIT FROM REVERSING THE REPUBLICAN FREEMARKET PHILOSOPHY THAT ABANDONED PUBLIC INVESTMENT IN HUMAN BEINGS BUT THE NUMBERS JUST DON'T ADD UP IN THIS ECONOMIC FIELD OF DREAMS BECAUSE THERE SIMPLY AREN'T ENOUGH HIGHSKILLED JOBS TO GO AROUND THE LABOR DEPARTMENT PROJECTS THE ECONOMY WILL PRODUCE ABOUT 26 MILLION NONFARM NEW JOBS FROM 1990 TO 2005 ASSUMING A MODERATE 23 ANNUAL GROWTH IN THE GROSS NATIONAL PRODUCT MORE THAN 21 MILLION OF THOSE JOBS WILL COME IN THE SERVICE SECTOR AND OTHER LOWWAGE OCCUPATIONS NINE OUT OF THE 10 HIGHESTGROWTH OCCUPATIONS WILL BE SUCH SERVICEORIENTED LOWPAYING JOBS AS RETAIL CLERK JANITOR AND NURSING AIDE THE UNSTATED BOTTOM LINE IS THAT MILLIONS OF AMERICANS WILL BE FIGHTING MANY UNSUCCESSFULLY OVER LOWWAGE JOBS IN THE BURGEONING SERVICE SECTOR AND THE REMNANTS OF THE HIGHWAGE INDUSTRIAL BASE THIS SOUNDS LIKE LIBERAL DARWINISM IF THE NEW ADMINISTRATION IS COUNTING ON FUTURE TECHNOLOGIES TO SUPPLY THE COUNTRY WITH A FLOOD OF HIGHPAYING JOBS IT WILL BE DISAPPOINTED ONLY A TRICKLE OF THOSE JOBS MOSTLY FOR HIGHLY SPECIALIZED TASKS WILL PAY HIGH WAGES MORE IMPORTANT IT IS A BIG AND TYPICALLY ARROGANT ASSUMPTION THAT AMERICANS WILL DOMINATE THE HIGHSKILL ARENA NO MATTER HOW MUCH MONEY IS SPENT ON TRAINING AND EDUCATION THE NEW INDUSTRIES WILL BE HIGHLY MOBILE AND DECENTRALIZED MOVING WHEREVER LABOR IS CHEAPEST INDEED THE CRITICAL ISSUE IS ULTIMATELY WAGES THE DECLINE IN REAL WAGES FOR MOST AMERICANS WILL NOT BE ARRESTED SIMPLY BY GIVING PEOPLE MORE SKILLS BY EMBRACING THE GLOBAL LOWWAGE STRATEGY MR CLINTON IS GUARANTEEING THAT THE VAST MAJORITY OF JOBS CREATED UNDER HIS WATCH WILL START AT LOWER PAY AND FEWER BENEFITS THAN AMERICANS KNOW CAN SUSTAIN A DECENT STANDARD OF LIVING AS TWO WORLD BANK ECONOMISTS CONCLUDED IN AN INTERNAL STUDY UNREGULATED TRADE WILL PUSH WAGES DOWNWARD DUE TO THE VAST NUMBER AND RAPID GROWTH RATE OF UNDEREMPLOYED POPULATIONS IN THE THIRD WORLD NORTHERN LABORERS WILL GET POORER WHILE SOUTHERN LABORERS WILL STAY MUCH THE SAME AS A RESULT EVEN THE PROMISED HIGH WAGES FOR THE VAUNTED HIGHSKILLS JOBS IN THE NEW TECHNOLOGIES INDUSTRIES WILL PROVE TO BE A MIRAGE CONSEQUENTLY MANY WORKING UNDEREMPLOYED AND UNEMPLOYED AMERICANS WHOSE LIVING STANDARD IS BEING HAMMERED BY GLOBAL ECONOMIC FORCES LIKE FREE TRADE FIND MR CLINTON'S CRY FOR CHANGE INCOMPATIBLE WITH HIS SUPPORT FOR NAFTA MR CLINTON MUST BEGIN TO VIEW NAFTA AGAINST THE BACKDROP OF A FAR GREATER DRAMA UNFOLDING IN THE WORLD SINCE THE EARLY 1980S GLOBAL CORPORATE LEADERS AND POLITICIANS HAVE PROMOTED AN AGENDA MOST CLEARLY ARTICULATED IN THE NOW ALMOST FORGOTTEN BAKER PLAN NAMED FOR THENTREASURY SECRETARY JAMES BAKER IN RETURN FOR DESPERATELY NEEDED DEBT RELIEF COUNTRIES AGREED TO RESTRUCTURE THEIR ECONOMIES TO ALLOW MORE PRIVATIZATION AND DEREGULATION MOST IMPORTANT COUNTRIES WOULD OPEN UP THEIR LABOR MARKETS GIVING GLOBAL CORPORATIONS AN UNLIMITED POOL OF WORKERS WHO WOULD TOIL FOR A FRACTION OF THE WAGES PAID IN THE MORE INDUSTRIALIZED COUNTRIES NAFTA IS JUST ONE PIECE OF THE LOWWAGE STRATEGY WHILE NAFTA IS POLITICALLY CRITICAL TO MEXICAN PRESIDENT CARLOS SALINAS AND WOULD SPEED UP INVESTMENT ITS POTENTIAL DEMISE IN CONGRESS WOULD NOT DISRUPT THE INEXORABLE FLOW OF CAPITAL TO THE SOUTH I HAVE TALKED TO MANY MEXICAN BUSINESSMEN AND AMERICAN BUSINESSMEN ALREADY IN MEXICO WHO EXPECT OTHERS TO JOIN THE LARGE COMPANIES SUCH AS GENERAL MOTORS AND AT&T AND THE SMALLER COMPANIES SUCH AS TOLEDO OHIOBASED DURA THAT ARE STREAMING SOUTH OF THE BORDER THE LOWWAGE MAGNET IS JUST TOO GOOD TO PASS UP FOR COMPANIES CURRENTLY OPERATING FACTORIES IN MEXICO THE MOST IRRITATING ASPECT OF NAFTA IS THE LIGHT IT IS SHEDDING ON ENVIRONMENTAL AND LABOR ABUSES THAT HAVE BEEN GOING ON FOR MORE THAN A DECADE JUST ACROSS THE BORDER INDEED THE BASIC QUESTION HERE IS WHAT IS OUR VIEW OF COMMUNITY AND SOCIAL PROSPERITY WORK IS AN IMPORTANT BOND BETWEEN PEOPLE WHO SPEND AT LEAST HALF THEIR WAKING LIVES TRYING TO MAKE ENDS MEET IF THE AMERICA OF THE FUTURE MEANS EACH PERSON MUST COMPETE ON HIS OR HER OWN IN THE WORLD MARKETPLACE WE ARE GUARANTEEING A FURTHER ALIENATION OF INDIVIDUALS FROM THE SOCIETAL FABRIC IF THE MESSAGE IS THAT AMERICANS HAVE LIVED TOO WELL FOR TOO LONG AND SHOULD EXPECT A THIRD WORLD LIVING STANDARD THEN THE DEBATE SHOULD BE ON THOSE TERMS NOT CLOAKED IN CODE WORDS LIKE COMPETITIVENESS ALTHOUGH HE ENDORSED NAFTA MR CLINTON RESISTED BEING PUSHED BY MR BUSH INTO THE BLACKANDWHITE SIMPLISTIC DICHOTOMY OF FREE TRADE VS PROTECTIONISM NOW HIS CHALLENGE IS NOT JUST TO MODIFY NAFTA IT IS TO CHART A NEW COURSE FOR THE TERMS UNDER WHICH THE GLOBAL ECONOMY OPERATES TO DO SO HE MUST EMBRACE A PHILOSOPHY THAT HAS ONE KEY UNDERPINNING WAGES WILL NOT BE THE BASIS FOR WORLDWIDE COMPETITION CLEARLY SUCH A STAND WOULD DIRECTLY CONTRADICT THE MANTRA OF MANY OF MR CLINTON'S CORPORATE SUPPORTERS BUT IT IS THE ONLY COURSE IF HE WANTS TO STEER THE NATION'S CITIZENS AS WELL AS MILLIONS OF PEOPLE AROUND THE WORLD TO A SECURE ECONOMIC FUTURE MR TASINI PRESIDENT OF THE NATIONAL WRITERS UNION A UAW AFFILIATE IS WRITING A BOOK ON THE GLOBAL ECONOMY AND FREE TRADE FOR WW NORTON SEE RELATED LETTER LETTERS TO THE EDITOR HIGH PRODUCTIVITY BRINGS HIGH WAGES WSJ FEB 9 1993 9301210160 9302080186 930208 DELOITTE WILL HELP CHINA RESTRUCTURE ACCOUNTING METHODS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DELOITTE TOUCHE TOMATSU INTERNATIONAL WILL WORK TO ENSURE THAT AS CHINA MOVES TOWARD A FREEMARKET ECONOMY IT WILL HAVE THE ACCOUNTING STANDARDS TO MATCH THE MAJOR ACCOUNTING AND CONSULTING FIRM HAS WON A 26 MILLION CONTRACT TO HELP THE PEOPLE'S REPUBLIC DEVELOP GENERAL AND SECTORSPECIFIC ACCOUNTING STANDARDS AND FINANCIAL REPORTING FORMATS AND TO SET UP AN INSTRUCTION PROGRAM FOR CERTIFICATION FOR ACCOUNTANTS IT ISN'T THAT THE ESTIMATED 10000 CPAS IN CHINA DON'T PRACTICE BY ANY STANDARDS THERE ARE STANDARDS BUT THEY'RE NOT ADEQUATE FOR A FREEMARKET ECONOMY OR FOR WESTERN BUSINESSES A SPOKESMAN FOR DELOITTE TOUCHE TOMATSU SAID DEVELOPING THE NEW STANDARDS WILL CREATE AN ENVIRONMENT IN WHICH WESTERN FIRMS CAN MORE EASILY OPERATE HE ADDED AN ECONOMY INFLUENCED BY MARKET FORCES REQUIRES STANDARDS AND SYSTEMS THAT PROVIDE TRANSPARENCY IN FINANCIAL INFORMATION TO MANAGERS AND FOREIGN INVESTORS SAID TED T LEE MANAGING DIRECTOR OF DELOITTE TOUCHE TOMATSU CHINA AND LIAISON PARTNER FOR THE PROJECT DEVELOPING ACCOUNTING STANDARDS ISN'T JUST A MATTER OF PUTTING CHINESE CHARACTERS ON EXISTING INTERNATIONAL STANDARDS HE SAID ADDING NEW STANDARDS MUST REFLECT THE UNIQUENESS OF BUSINESS IN CHINA THE ACCOUNTING AND MANAGEMENT CONSULTING FIRM WILL BE WORKING WITH A CHINESE TEAM FROM THE MINISTRY OF FINANCE ON THE PROJECT WHICH SHOULD TAKE THREE YEARS CHINA PLANS TO GREATLY INCREASE THE NUMBER OF CERTIFIED PUBLIC ACCOUNTANTS BY THE YEAR 2000 DELOITTE TOUCHE TOMATSU SAID THE PROGRAM WHICH RECEIVED BIDS FROM ALL BIG SIX ACCOUNTING FIRMS IS BEING FUNDED THROUGH A WORLD BANK CREDIT TO CHINA DELOITTE TOUCHE TOMATSU WITH 48 BILLION IN REVENUE WORLDWIDE IN 1992 CHANGED ITS NAME LAST JUNE FROM DRT INTERNATIONAL THE PARENT ORGANIZATION FOR DELOITTE & TOUCHE IT SAID IT WAS THE FIRST ACCOUNTING FIRM TO ESTABLISH A PRESENCE IN CHINA EARLIER IN THE CENTURY WITH AN OFFICE IN SHANGHAI 9302080185 930208 MARKETING & MEDIA NEW CONVERSE SHOE NAMED RUN 'N GUN IS ANGERING CRITICS SOME FEAR THAT TEEN VIOLENCE WILL BE ENCOURAGED MAKER COMPLAINS OF OVERREACTION BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL A NEW CONVERSE BASKETBALL SNEAKER CALLED THE RUN 'N GUN SHOE HAS SPARKED CRITICISM THAT THE NAME MIGHT ENCOURAGE ADOLESCENT VIOLENCE ESPECIALLY IN INNER CITIES WHERE HANDGUNS ARE COMMON ALTHOUGH THE NAME REFERS TO A FASTBREAKING STYLE OF BASKETBALL SOME WORRY THAT THE PLAY ON WORDS IS IRRESPONSIBLE IT'S HORRIBLE I CANNOT BELIEVE THAT IT'S JUST AMAZING EXPLOITATION SAYS DEBORAH SHORE EXECUTIVE DIRECTOR OF SASHA BRUCE YOUTHWORK INC A SERVICE AGENCY IN WASHINGTON DC JAMES GARBARINO PRESIDENT OF THE ERIKSON INSTITUTE FOR ADVANCED STUDY IN CHILD DEVELOPMENT IN CHICAGO AND AN EXPERT ON CHILD VIOLENCE SAYS THEY CAN SAY THE ALLUSION IS TO BASKETBALL BUT THERE IS ALSO A CLEAR ALLUSION TO THE GUN CULTURE RUN 'N GUNS WILL RETAIL FOR 80 A PAIR AND CRITICS CONTEND THE NAME IS OF PARTICULAR CONCERN BECAUSE HIGHPRICED SNEAKERS ARE STATUS SYMBOLS AMONG YOUTHS SOME GANGS WEAR ONLY CERTAIN SHOE BRANDS AND THERE HAVE BEEN CASES OF TEENAGERS WHO WERE KILLED BY ASSAILANTS SEEKING THE VICTIMS' SHOES GILBERT FORD PRESIDENT OF CONVERSE SAYS CRITICS ARE OVERREACTING THE NAME OF A SHOE ISN'T GOING TO PROVOKE ANYONE TO VIOLENCE HE MAINTAINS OTHER SHOE COMPANIES HAVE USED NAMES THAT ARE JUST AS BAD HE ADDS SUCH AS SHOOTER ASSAULT MARAUDER AIR MAGNUM FORCE AND SLASHER WE'RE BEING SINGLED OUT AND I DON'T THINK THAT'S FAIR THE RUN 'N GUN NAME WON'T BE ON THE SHOE OR IN COMMERCIALS WHICH WILL REFER TO IT AS A RUNNING BASKETBALL SHOE MR FORD SAYS MOST SHOES MADE BY CONVERSE AND OTHER COMPANIES TYPICALLY DON'T CARRY AN EMBOSSED LABEL ON THE SHOE ITSELF IDENTIFYING THEM BY THE NAME RATHER A TAG WITH THE NAME IS USUALLY ATTACHED TO SHOES ON DISPLAY AT RETAIL STORES MR FORD ACKNOWLEDGES THAT SOME CUSTOMERS WILL KNOW THE NEW SHOE BY THE RUN 'N GUN NAME THE INTRODUCTION OF RUN 'N GUN COMES AT A TIME THAT CONVERSE A UNIT OF INTERCO INC IS SEEKING TO REGAIN MOMENTUM IN THE ATHLETICSHOE WARS ONCE ONE OF THE TOPSELLING BRANDS IT HAS BEEN FAR OUTDISTANCED IN RECENT YEARS BY NIKE INC AND REEBOK INTERNATIONAL LTD IN 1992 IT HAD US SALES OF 215 MILLION AND A MEAGER MARKET SHARE OF 36 ESTIMATES SPORTING GOODS INTELLIGENCE NEWSLETTER THE NEW SHOE WHICH WAS SHOWN TO BUYERS AT A TRADE SHOW IN ATLANTA DURING THE WEEKEND WILL BE ON STORE SHELVES THIS SUMMER SOME SHOE RETAILERS SUPPORT CONVERSE IN CONTENDING THAT CRITICS OF THE RUN 'N GUN NAME DON'T HAVE A LEGITIMATE CONCERN IT'S KIND OF RIDICULOUS TO THINK THAT RUN 'N GUN WOULD BE INTERPRETED WRONG SAYS MARK VAN GRACK WHO OWNS FOUR ATHLETICSHOE STORES IN THE WASHINGTON DC AREA CRITICS AGREE THAT OF THE MANY THINGS CONTRIBUTING TO VIOLENCE AMONG YOUTH THE NAME OF A BASKETBALL SHOE IS HARDLY THE BIGGEST PROBLEM IT'S NOT A MAKEORBREAK FACTOR SAYS CARL BELL EXECUTIVE DIRECTOR OF THE COMMUNITY MENTAL HEALTH COUNCIL IN CHICAGO BUT IT IS KIND OF A MILD REINFORCER WHY ENCOURAGE MOREOVER MR GARBARINO OF THE ERIKSON INSTITUTE SAYS HE FINDS IT HARD TO BELIEVE THAT CONVERSE DIDN'T FULLY UNDERSTAND THE POSSIBLE DUAL MEANING OF RUN 'N GUN WHEN IT CHOSE THE NAME IF THEY SAY WE NEVER THOUGHT OF IT' IT WOULD SEEM DISINGENUOUS AT BEST IT IS MUCH MORE PROBABLE THAT THEY THOUGHT THEY COULD GET AWAY WITH THE REFERENCE PRECISELY BECAUSE IT WILL INCREASE SALES HE SAYS BEN HAITH A COMMUNITY STRATEGIST AT DROP A DIME A CRIMEPREVENTION GROUP IN BOSTON ADDS UNTIL WE GET A HANDLE ON THE PROBLEM OF VIOLENCE COMPANIES HAVE TO BE AWARE OF WHAT THESE MESSAGES MAY INITIATE THEY HAVE A LOT OF EXPLAINING TO DO THEY NEED TO RETHINK THIS GEORGETTE WATSON EXECUTIVE DIRECTOR OF THE GOVERNOR'S ALLIANCE AGAINST DRUGS IN MASSACHUSETTS SAYS SHE HOPES TO MEET WITH OFFICIALS OF CONVERSE WHICH IS BASED IN NORTH READING MASS TO ASK THEM TO CHANGE THE SHOE'S NAME SHE CONCLUDES MARKETERS HAVE NO SENSITIVITY TOWARDS WHAT IS HAPPENING IN THE INNER CITY 9302080184 930208 LETTERS TO THE EDITOR DON'T LET HOME BECOME A SWEATSHOP I READ WITH CONSIDERABLE CONCERN YOUR JAN 6 EDITORIAL UNFINISHED HOMEWORK URGING THENLABOR SECRETARY LYNN MARTIN TO LIFT THE BAN ON INDUSTRIAL HOMEWORK IN WOMEN'S APPAREL HOMEWORK IS BANNED IN THE APPAREL INDUSTRY IN NEW YORK STATE NOT BECAUSE IT IS A DESIRED OPTION BUT BECAUSE IT IS AN EXPLOITATIVE ONE IT IS EASY TO FIND AN EMPLOYER WHO CAN RUN DOWN A LIST OF THE BENEFITS OF HOMEWORK PAYING PIECE RATES INSTEAD OF MINIMUM WAGES CAN SAVE MONEY HAVING WORKERS STAY AT HOME WITH THEIR FAMILIES IS A WONDERFUL CONCEPT BUT IF THE CONDITIONS IN THE HOME BECOME UNSAFE AND UNHEALTHY BECAUSE THE PRESSURE TO PRODUCE MORE PIECE GOODS HAS FORCED GRANDPARENTS CHILDREN AND RELATIVES TO WORK ON MAKESHIFT ASSEMBLY LINES IN BASEMENTS GARAGES AND LIVING ROOMS HOW CAN WORKERS BENEFIT YOU MAY HAVE LEFT YOUR READERS WITH THE IMAGE OF INDUSTRIAL HOMEWORK AS MOM SEWING IN THE KITCHEN WHILE THE CHILDREN SIT NEXT TO HER WITH THEIR COLORING BOOKS AT THE NEW YORK STATE DEPARTMENT OF LABOR WE KNOW THIS IS AN UNREALISTIC PORTRAIT IN FACT IN MAY 1991 WE FINED TEAMMATE FASHIONS INC REFLEX ACCESSORIES INC OF NEW YORK CITY A TOTAL OF 153000 FOR RUNNING A HOMEWORK OPERATION USING VIETNAMESE AND CAMBODIAN FAMILIES CHILDREN AND GRANDPARENTS WERE ACTIVE PARTICIPANTS IN THESE HOMEBOUND ASSEMBLY LINES AND MANY PEOPLE WERE EARNING AS LITTLE AS 1 AN HOUR INDUSTRIAL HOMEWORK HAS FORCED MANY INDIVIDUALS TO TURN THEIR HOMES INTO PIECEWORK FACTORIES ESTABLISHMENTS WHERE THEY WORK AT SALARIES BELOW THE MINIMUM WAGE FOR EXCESSIVE HOURS AND IN CONDITIONS INJURIOUS TO THEIR HEALTH THEY ARE PLACES WHERE CHILD LABOR LAWS ARE ROUTINELY VIOLATED AND WHERE PEOPLE WORK WITHOUT HEALTH OR DISABILITY INSURANCE PENSIONS OR ANY OTHER EMPLOYEE BENEFITS THESE WORKERS WILL BE FORCED TO PAY THE EXPENSES OF MAINTAINING A HOMEBASED WORKPLACE WHILE ISOLATING THEMSELVES FROM THE BUSINESS COMMUNITY AND IN EFFECT CUTTING OFF THEIR ABILITY AND THE ABILITY OF FAMILY MEMBERS TO BREAK INTO THE MAINSTREAM JOB MARKET IN NEW YORK STATE WE SEE THE CONDITIONS UNDER WHICH INDUSTRIAL HOMEWORKERS EARN THEIR INADEQUATE WAGE EVERY DAY WE WORK WITH COMMUNITY GROUPS FROM CHINATOWN TO THE SOUTH BRONX TO UNDERSTAND THESE CONDITIONS BETTER AND WE UNDERSTAND THE PAST AND PRESENT ROLE OF INDIVIDUALS AND ORGANIZATIONS SUCH AS THE INTERNATIONAL LADIES' GARMENT WORKERS UNION AND AMALGAMATED TEXTILE AND CLOTHING WORKERS UNION IN THEIR FIGHT AGAINST THE EXPLOITATION OF WORKERS IN THIS INDUSTRY THE PROPOSAL YOU SUPPORT ADVOCATES INCREASED MONITORING AND ENFORCEMENT THROUGH EXAMINATION OF PAPERWORK AND ONSITE INSPECTION AND THE THREAT OF A FEDERAL RAID OR INDICTMENT THIS IS AN AMAZINGLY NAIVE ASSUMPTION THE STEADY DISMANTLING OF THE FEDERAL ENFORCEMENT CAPACITY OVER THE PAST 12 YEARS HAS THWARTED ANY ABILITY TO INCREASE ENFORCEMENT OF SAFETY AND HEALTH OR WORKPLACE STANDARDS FORTUNATELY THE LIFTING OF THE FEDERAL BAN WOULD NOT DIRECTLY AFFECT NEW YORK STATE'S ENFORCEMENT OF STATE LAWS PROHIBITING INDUSTRIAL HOMEWORK UNDER THE DIRECTION OF GOV MARIO CUOMO AND WITH THE SUPPORT OF THE LEGISLATURE THE NEW YORK STATE DEPARTMENT OF LABOR AND SPECIFICALLY OUR APPAREL INDUSTRY TASK FORCE WILL CONTINUE TO SEEK OUT AND ERADICATE AGGRESSIVELY THE SHAMELESS EXPLOITATION OF WORKERS WHERE IT EXISTS IN THE FIVE YEARS SINCE THE TASK FORCE WAS CREATED WE HAVE WITNESSED SOME OF THE MOST BRUTAL INHUMANE FACTORY CONDITIONS IMAGINABLE MANY OF THESE EMPLOYERS ILLEGALLY FORCE THEIR WORKERS TO TAKE GARMENTS HOME TO BE COMPLETED BY LIFTING THE BAN ON HOMEWORK THE FEDERAL GOVERNMENT WOULD BE GIVING CARTE BLANCHE TO EMPLOYERS TO EXTEND THIS EXPLOITATIVE PRACTICE THERE ARE BETTER SOLUTIONS TO INCREASING OPPORTUNITIES FOR WOMEN AND CHILDREN WITHOUT EXTENDING FACTORIES INTO THEIR HOMES THERE ARE MODEL PROGRAMS SPONSORED BY EMPLOYERS AND UNIONS THAT OFFER DEPENDENT CARE OPTIONS SUCH AS ONSITE CHILD CARE CENTERS OR FLEXIBLE WORK SCHEDULES WE CANNOT AFFORD TO TURN BACK THE CLOCK TO THE DAYS OF THE TRIANGLE SHIRT WAIST FIRE AND ALLOW THE HORRENDOUS CONDITIONS THAT EXISTED WITHIN THE FACTORY TO PROLIFERATE WITHIN THE WALLS OF PRIVATE HOMES WE MUST CONTINUE TO WORK TOGETHER GOVERNMENT BUSINESS AND LABOR TO RECONCILE THE JOB AND FAMILY NEEDS OF WORKING MEN AND WOMEN WITHOUT SACRIFICING BASIC RIGHTS OF THE WORKER OR EMPLOYER 9302080183 930208 WHO'S NEWS ALYESKA'S HERMILLER SENT TO RESTORE IMAGE STEPS DOWN WITH LITTLE CHANGED BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL JAMES HERMILLER WAS SENT TO ALYESKA PIPELINE SERVICES CO THREE YEARS AGO WITH A MANDATE TO CLEAN UP A CORPORATE IMAGE BADLY STAINED BY THE EXXON VALDEZ OIL SPILL NOW HE'S LEAVING AND ALYESKA'S REPUTATION HASN'T GOTTEN MUCH BETTER MR HERMILLER A VETERAN BRITISH PETROLEUM LTD EXECUTIVE SAID HE WILL STEP DOWN FROM HIS POSITIONS AS CHIEF EXECUTIVE OFFICER AND PRESIDENT OF ALYESKA A CONSORTIUM OWNED BY BP EXXON CORP ATLANTIC RICHFIELD CO AND SEVERAL OTHER OIL COMPANIES THAT RUN ALASKA'S NORTH SLOPE OIL FIELDS ALYESKA IS RESPONSIBLE FOR OPERATING THE TRANSALASKA PIPELINE AND THE TANKER LOADING FACILITY AT VALDEZ ALASKA ITS EXECUTIVES ARE PICKED FROM THE RANKS OF THE OWNER COMPANIES MR HERMILLER 57 YEARS OLD DIDN'T GIVE ANY REASON FOR THE DEPARTURE AN ALYESKA SPOKESWOMAN SAID HE IS TAKING EARLY RETIREMENT FROM BP AND WILL SURRENDER HIS ALYESKA POSTS AS OF APRIL 15 MR HERMILLER COULDN'T BE REACHED TO COMMENT MR HERMILLER IS AT THE CENTER OF A SCANDAL REVOLVING AROUND ALYESKA'S COVERT CAMPAIGN AGAINST A LONGTIME CRITIC CHARLES HAMEL AN OIL TRADER NOW LIVING IN ALEXANDRIA VA ALYESKA HIRED WACKENHUT CORP A MIAMIBASED SECURITY SERVICES CONCERN TO FIND OUT HOW MR HAMEL WAS RECEIVING CONFIDENTIAL CORPORATE INFORMATION ABOUT ALYESKA'S ENVIRONMENTAL VIOLATIONS AND SAFETY PROBLEMS THAT OPERATION HAS BECOME AN EMBARRASSMENT TO ALYESKA SINCE IT WAS EXPOSED IN 1991 CONGRESSIONAL HEARINGS AND PRESS ACCOUNTS HAVE PORTRAYED IT AS SOMETHING OUT OF A CHEAP SPY NOVEL COMPLETE WITH FAKE IDENTITIES HIDDEN MICROPHONES FEMMES FATALES AND LATENIGHT RENDEZVOUZ SEVERAL CIVIL SUITS HAVE BEEN FILED AGAINST ALYESKA IN CONNECTION WITH THE OPERATION AND GRAND JURIES IN FLORIDA VIRGINIA AND WASHINGTON DC ARE BELIEVED TO BE INVESTIGATING FOR POSSIBLE CRIMINAL WRONGDOING AN INQUIRY BY THE HOUSE INTERIOR COMMITTEE CONCLUDED LAST SUMMER THAT THE OPERATION MAY HAVE BROKEN NUMEROUS FEDERAL LAWS AND RECOMMENDED THAT THE JUSTICE DEPARTMENT CONSIDER CRIMINAL CHARGES IT'S NOT KNOWN WHETHER MR HERMILLER HIMSELF IS A TARGET OF ANY OF THE VARIOUS INVESTIGATIONS HE HAS DEFENDED THE LEGALITY OF THE COVERT OPERATION ALTHOUGH HE HAS ALSO PUBLICLY APOLOGIZED FOR SOME ASPECTS OF IT DON NYBERG PRESIDENT OF BP PIPELINE CO SAID BP AND ALYESKA HAVE NO INDICATION THAT THERE IS ANY ACTIVE OR IMMINENT RISK OF CRIMINAL PROCEEDINGS OR ANYTHING LIKE THAT AGAINST MR HERMILLER OR ANYONE ELSE CONNECTED WITH ALYESKA MR HERMILLER WAS CONSIDERED A RISING STAR AT BP WHEN HE WAS SENT TO ALYESKA AS A CRISIS MANAGER IN LATE 1989 SIX MONTHS AFTER THE EXXON VALDEZ SUPERTANKER RAN AGROUND IN ALASKA'S PRINCE WILLIAM SOUND AND SPILLED 11 MILLION GALLONS OF OIL AT THE TIME ALYESKA WAS SHARPLY CRITICIZED FOR ITS BUNGLED EFFORTS TO CONTAIN THE SPILL MR HERMILLER PROMISED NEW SENSITIVITY TO CITIZEN AND ENVIRONMENTAL CONCERNS HIS OPEN STYLE AND PERSONAL CHARM SEEMED TO COOL OFF THE FIGHTING BETWEEN ALYESKA AND SOME OF ITS OPPONENTS BEFORE THE SPYING CAMPAIGN CAME TO LIGHT HE WAS GENERALLY GIVEN HIGH MARKS FOR DEFTLY HANDLING OF ONE OF THE TOUGHEST MANAGEMENT CHALLENGES IN CORPORATE HISTORY IN A STATEMENT ALYESKA'S OIL COMPANY OWNERS PRAISED MR HERMILLER FOR HIS EXCELLENT CONTRIBUTIONS NOTING PARTICULARLY HIS EMPHASIS ON ENVIRONMENTAL PROGRAMS MR HAMEL THE TARGET OF THE SPYING OPERATION SAID MR HERMILLER WAS SUPPOSED TO BRING PUBLIC ACCOUNTABILITY TO ALYESKA BUT HE MADE SOME GRAVE ERRORS IN JUDGMENT THAT HAVE HURT MANY PEOPLE THE JOB OF COPING WITH THE LEGACY OF THE VALDEZ SPILL NOW GOES TO DAVID J PRITCHARD 45 WHO WILL SUCCEED MR HERMILLER MR PRITCHARD CURRENTLY IS SENIOR VICE PRESIDENT OF BP'S PRUDHOE BAY UNIT 9302080182 930208 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING TWO INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED EIGHT INCLUDING SEVEN INITIAL OFFERINGS THE BIG BOARD BEGAN TRADING TWO INITIAL OFFERINGS NINE WEST GROUP INC STAMFORD CONN A MAKER OF WOMEN'S FOOTWEAR UNDER NIN AND DEVELOPERS DIVERSIFIED REALTY CORP MORELAND HILLS OHIO A REAL ESTATE MANAGEMENT COMPANY UNDER DDR THE BIG BOARD ALSO BEGAN TRADING INSTRUMENT SYSTEMS CORP JERICHO NY A MAKER OF ELECTRONIC EQUIPMENT AND OTHER PRODUCTS UNDER ISY AND ONEITA INDUSTRIES INC ANDREWS SC AN APPAREL MAKER UNDER ONA BOTH COMPANIES PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE FOLLOWING COMPANIES BEGAN TRADING AS INITIAL PUBLIC OFFERINGS ON THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET COCENSYS INC IRVINE CALIF A MAKER OF PRODUCTS THAT TREAT DISORDERS OF THE CENTRAL NERVOUS SYSTEM UNDER COCN NORAND CORP CEDAR RAPIDS IOWA A MAKER OF COMPUTERIZED SYSTEMS FOR AUTOMATING PRODUCT SALES AND DISTRIBUTION UNDER NRND STANDARD MANAGEMENT CORP INDIANAPOLIS IND AN INSURANCE HOLDING COMPANY UNDER SMAN MATHSOFT INC CAMBRIDGE MASS A MAKER OF CALCULATION SOFTWARE TOOLS UNDER MATH POWERSOFT CORP BURLINGTON MASS A SOFTWARE MAKER UNDER PWRS ROCKY SHOES & BOOTS INC NELSONVILLE OHIO A FOOTWARE MAKER UNDER RCKY PROXIMA CORP SAN DIEGO CALIF A MAKER OF LIQUID DISPLAY PROJECTION PRODUCTS UNDER PRXM ALSO AMERICAN FEDERAL BANK GREENVILLE SC A SAVINGS BANK WHICH PREVIOUSLY TRADED ON THE NASDAQ SMALL CAP MARKET BEGAN TRADING ON THE NATIONAL SYSTEM UNDER AMFB OPTIONS ON FIRST PACIFIC NETWORKS INC A TELECOMMUNICATIONS COMPANY IN SUNNYVALE CALIF BEGAN TRADING ON THE PACIFIC STOCK EXCHANGE AND ON THE CHICAGO BOARD OPTIONS EXCHANGE THE CBOE WILL ALSO BEGIN TRADING OPTIONS ON BANYAN SYSTEMS INC WESTBORO MASS A SOFTWARE MAKER ON WEDNESDAY 9302080181 930208 TRACKING TRAVEL BY BRUCE INGERSOLL FREQUENT FLIERS ARE GETTING A BREAK AT LEAST AT SOME AIRPORTS THE FEDERAL AVIATION ADMINISTRATION DECIDED IN DECEMBER THAT 22 AIRPORTS CAN'T COLLECT AIRPORTDEPARTURE TAXES FROM PEOPLE TRAVELING ON FREQUENTFLIER AWARDS BUT THE FAA ALSO DECIDED THAT 48 OTHER AIRPORTS INCLUDING MANY OF THE NATION'S LARGEST CAN COLLECT THE 3APASSENGER TAX FROM SUCH TRAVELERS DESPITE CONGRESS'S EFFORTS TO STOP THE PRACTICE THERE IS NO DISPUTE THAT AIRPORTS CAN TAX PAYING AIRLINE PASSENGERS AND USE THE REVENUE FOR AIRPORT IMPROVEMENTS BUT AIRLINES SAY THE TAXES ALSO KNOWN AS PASSENGER FACILITY CHARGES ARE UNFAIR TO PEOPLE TRAVELING ON FREQUENTFLIER AWARDS THESE PEOPLE THE CARRIERS SAY EXPECT THEIR ACCUMULATED MILEAGE TO EARN THEM TOTALLY FREE TRIPS LAST FALL THE AIRLINES PERSUADED CONGRESS TO ADOPT A PROVISION THAT EFFECTIVELY FORBIDS THE FAA TO APPROVE ANY AIRPORT TAXCOLLECTION PLANS DURING FISCAL 1993 WHICH BEGAN OCT 1 THE LAW TOOK EFFECT OCT 6 THE FAA INTERPRETS THE LAW AS BARRING AIRPORTS FROM TAXING FREQUENT FLIERS' FREE TRIPS IF THEY SUBMITTED A TAX PROPOSAL TO THE AGENCY AFTER OCT 6 THAT MEANS A SKIER TRAVELING ON A FREQUENTFLIER AWARD OUT OF TELLURIDE COLO OR A FAMILY OF FOUR COUNTRYMUSIC FANS FLYING FREE OUT OF NASHVILLE TENN CAN'T BE DOCKED 3 AND 12 RESPECTIVELY AT LEAST UNTIL THE CURRENT FISCAL YEAR ENDS IN SEPTEMBER CONGRESS COULD EXTEND THE LAW YEAR TO YEAR THE LIST OF POSTOCT 6 AIRPORTS ALSO INCLUDES MANCHESTER NH MIDLAND TEXAS AND WHITE PLAINS NY AS WELL AS ST THOMAS AND ST CROIX IN THE VIRGIN ISLANDS AND FIVE FLORIDA AIRPORTS ORLANDO PENSACOLA TALLAHASSEE MARATHON AND KEY WEST THE FAA LEGAL OPINION HOWEVER SPARES AIRPORTS WITH PREOCT 6 PLANS FROM LOSING TENS OF MILLIONS OF DOLLARS IN TAX REVENUE ANNUALLY THESE 48 AIRPORTS INCLUDE DENVER LAS VEGAS PHILADELPHIA ST LOUIS AND NEW YORK CITY'S THREE MAJOR AIRPORTS ABOUT 6 OF THE NATION'S AIRLINE PASSENGERS TRAVEL ON FREQUENTFLIER AWARDS ACCORDING TO THE FAA VINTAGE AIR TOURS IS USING A PAIR OF REFURBISHED DC3 AIRLINERS TO TRANSPORT TOURISTS BACK TO THE 1940S THE AIRCRAFT BEGAN FERRYING TOUR GROUPS BETWEEN ORLANDO AND KEY WEST FLA LAST MONTH THE 28PASSENGER DC3S HAVE BEEN TRANSFORMED INTO REDANDWHITE TIME CAPSULES THEIR CABINS RESTORED TO THE ART DECO DECOR AND DETAILS OF A HALFCENTURY AGO ONE HAS BEEN CHRISTENED AMELIA IN HONOR OF AMELIA EARHART THE OTHER EVE AFTER VINTAGE AIR OWNER RICHARD BRANSON'S MOTHER WHO WAS A STAR GIRL STEWARDESS FOR BRITISH SOUTH AMERICAN AIRWAYS AFTER WORLD WAR II I'VE HEARD SO MANY STORIES FROM MY MOTHER SAYS MR BRANSON FOUNDER OF VIRGIN ATLANTIC AIRWAYS I'M SURE THAT MANY PEOPLE LIKE HER WILL WANT TO RELIVE THE OLD DAYS AND THAT LOTS OF YOUNGER PEOPLE WILL WANT TO EXPERIENCE THE NOSTALGIA FLIGHT FOR THEMSELVES VINTAGE AIR PILOTS AND FLIGHT ATTENDANTS WEAR '40S UNIFORMS THE CAPTAIN'S MASCOT FANCY A LABRADOR RETRIEVER GREETS BOARDING PASSENGERS DOGS WERE ONCE POPULAR FLYING COMPANIONS OF PILOTS PASSENGERS CAN READ '40S ISSUES OF LIFE AND SATURDAY EVENING POST OR SIGHTSEE FROM THE DC3 PICTURE WINDOWS WHILE LISTENING TO IN THE MOOD AND OTHER OLDTIME HITS NOSTALGIA DOESN'T COME CHEAP ONEWAY FARE FOR THE SHORT HOP IS 99 VINTAGE ALSO OFFERS A KEY WEST DAY TRIP FOR 244 RESEARCHERS ARE BUILDING A CASE FOR SETTING FEDERAL SAFETY STANDARDS FOR THE FOOTWELLS OF CARS AND OTHER VEHICLES TWO NEW STUDIES OF HIGHWAY ACCIDENTS SHOW VIOLENT INTRUSIONS INTO THE FOOTWELL OR FLOOR SPACE BENEATH THE DASHBOARD CAUSE A HIGH RATE OF SEVERE INJURIES TO THE LOWER LIMBS SUCH INTRUSIONS INCLUDE THE ENGINE BEING RAMMED INTO THE DRIVER'S COMPARTMENT BY A HEADON COLLISION RESEARCH SPONSORED BY THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY ARLINGTON VA FOUND THAT HALF OF THE INJURIES CAUSED BY DIRECT FORCE IN 23 CAR CRASHES RESULTED FROM A LEG BEING TRAPPED OR THE COLLAPSE OF PASSENGER COMPARTMENT AROUND THE FOOT OR LEG IN THE OTHER STUDY RESEARCHERS FOUND THAT 20 OF 1149 DRIVERS WHO HAD ACCIDENTS SUFFERED AT LEAST ONE LOWEREXTREMITY FRACTURE ANKLE FRACTURES WERE SIGNIFICANTLY MORE PREVALENT AMONG WOMEN DRIVERS SAYS PATRICIA DISCHINGER EPIDEMIOLOGIST AT THE NATIONAL STUDY CENTER FOR TRAUMA BALTIMORE THE STUDY SUGGESTS THE DIFFERENCE STEMS FROM FOOTWEAR AND POSITIONING OF THE SEAT WOMEN BEING GENERALLY SHORTER THAN MEN TEND TO SIT CLOSER TO THE PEDALS AND THUS DEEPER INTO THE FOOTWELL THE THREEYEAR STUDY ALSO SHOWED THAT SEAT BELTS DON'T PROTECT THE LOWER LIMBS FROM FOOTWELL INTRUSIONS THERE ISN'T ANY APPRECIABLE DIFFERENCE IN ANKLE AND LOWERLEG FRACTURE RATES BETWEEN SEATBELTED DRIVERS AND THOSE WHO DON'T WEAR BELTS SHE SAYS ON THE OTHER HAND SEATBELTED DRIVERS HAVE SIGNIFICANTLY FEWER FEMUR FRACTURES CLARENCE DITLOW DIRECTOR OF THE WASHINGTONBASED CENTER FOR AUTO SAFETY SAYS BECAUSE THERE'S NO STANDARD FOR FOOTWELLS MANUFACTURERS HAVE NO MANDATE TO MAKE THEM SAFER BUT AUTO MAKERS SAY THEY ARE LOOKING INTO WAYS TO IMPROVE THE CRASHWORTHINESS OF FOOTWELLS GENERAL MOTORS WITH THE HELP OF RACECAR TEAMS IS PURSUING A DESIGN STUDY TO FIND WAYS TO LESSEN LOWERLIMB INJURIES IN CRASHES BOTH IN THE INDIANAPOLIS 500 AND ON THE HIGHWAYS STATE MOTORVEHICLE OFFICIALS ARE TRYING TO IMPROVE SERVICE WISCONSIN DRIVERS CAN RENEW THEIR LICENSES BY PUSHBUTTON TELEPHONE AND CHARGE IT TO CREDIT CARDS COLORADO AND MARYLAND MOTORISTS CAN RENEW SEVEN DAYS A WEEK AT SHOPPING MALLS RICHMOND INTERNATIONAL AIRPORT BUILT ON THE SITE OF A CIVIL WAR BALLOON LAUNCH FOR AERIAL RECONNAISSANCE HAS BEGUN CALLING ITSELF THE WORLD'S OLDEST AIRPORT 9302080180 930208 EP TECHNOLOGIES FILES SHARES SUNNYVALE CALIF EP TECHNOLOGIES INC SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK AT BETWEEN 10 AND 12 EACH ALEX BROWN & SONS INC AND HAMBRECHT & QUIST INC WILL COMANAGE THE OFFERING THE MAKER OF DIAGNOSTIC AND TREATMENT DEVICES FOR HEART PROBLEMS SAID PROCEEDS WILL GO TO GENERAL CORPORATE USE 9302080179 930208 WOLOHAN LUMBER SALES UP SAGINAW MICH WOLOHAN LUMBER CO REPORTED JANUARY SALES OF 209 MILLION A 13 INCREASE FROM 185 MILLION A YEAR EARLIER SAMESTORE SALES INCREASED 12 THE LUMBER AND BUILDING MATERIALS COMPANY SAID JANUARY SALES TO CONSUMERS ROSE 78 FROM LAST YEAR WHILE SALES TO PROFESSIONAL CONTRACTORS ROSE 18 9302080178 930208 NEW ENGLAND ELECTRIC PLAN WESTBOROUGH MASS NEW ENGLAND ELECTRIC SYSTEM SAID IT EXPECTS TO INCUR A CHARGE OF AS MUCH AS 30 MILLION IN 1993 TO COVER COSTS OF AN EARLYRETIREMENT PROGRAM THE UTILITY SAID IT HAS OFFERED A VOLUNTARY RETIREMENT PROGRAM AVAILABLE UNTIL APRIL 2 TO NONUNION EMPLOYEES AT LEAST 55 YEARS OLD WITH 10 OR MORE YEARS OF SERVICE ABOUT 400 EMPLOYEES ARE ELIGIBLE THE COMPANY ADDED THAT IT EXPECTS SUBSTANTIAL ONGOING SAVINGS FROM THE PLAN IN 1992 THE COMPANY EARNED 185 MILLION OR 285 A SHARE ON REVENUE OF 218 BILLION 9302080177 930208 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR RETAIL SALES IN JANUARY PROBABLY HELD ON TO THE GAINS MADE IN DECEMBER DEFYING THE TRADITIONAL POSTHOLIDAY LULL HELPED BY A STRONG HOLIDAY SHOPPING SEASON DECEMBER SALES ROSE 12 FROM THE PREVIOUS MONTH AFTER SEASONAL FLUCTUATIONS ARE TAKEN INTO ACCOUNT TYPICALLY YOU SEE SOMETHING OF A LULL AFTER CHRISTMAS BUT WE'RE EXPECTING A CONTINUATION OF THE RECENT TREND WHEN THE COMMERCE DEPARTMENT REPORTS THE JANUARY FIGURES THIS WEEK SAID RON SCHREIBMAN VICE PRESIDENT OF THE NATIONAL ASSOCIATION OF WHOLESALERSDISTRIBUTORS RETAILERS HAVE BENEFITED FROM LOW INFLATION AND GRADUALLY IMPROVING JOB GROWTH TWO ELEMENTS THAT MAKE CONSUMERS MORE WILLING TO SPEND THE FUNDAMENTALS ARE SHAPING UP FOR A PRETTY GOOD YEAR IN 1993 MR SCHREIBMAN SAID A SEPARATE GOVERNMENT REPORT DUE OUT THIS WEEK WILL PROBABLY SHOW THAT INFLATION AT THE WHOLESALE LEVEL REMAINED WELL UNDER CONTROL HE ADDED PRODUCER PRICES WERE UP ONLY 16 IN 1992 AND THAT DIDN'T CHANGE MUCH IN JANUARY MR SCHREIBMAN SAID 9302080176 930208 LONGHORN STEAKS OFFERING ATLANTA LONGHORN STEAKS INC SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION A PUBLIC OFFERING OF TWO MILLION COMMON SHARES OF THOSE SHARES 12 MILLION WILL BE SOLD BY THE COMPANY AND 800000 BY CERTAIN SHAREHOLDERS INCLUDING LONGHORN'S CHAIRMAN GEORGE MCKERROW SR ACCORDING TO THE RESTAURANT CHAIN WHICH HAS ABOUT 53 MILLION SHARES OUTSTANDING 9302080175 930208 ACCOR TO ACQUIRE HOTEL GROUP SYDNEY AUSTRALIA ACCOR SA A FRENCH HOTEL CONCERN AGREED TO BUY RESORT HOTELS MANAGEMENT GROUP TERMS WEREN'T DISCLOSED QUALITY PACIFIC CORP WHICH IS CONTROLLED BY ACCOR SAID IN A STATEMENT FRIDAY THAT RESORT HOTELS MANAGES 12 HOTELS WITH A TOTAL OF 900 ROOMS IN THREE EASTERN AUSTRALIAN STATES RAYMOND CAPDEVILA MANAGING DIRECTOR OF QUALITY PACIFIC SAID THE HOTELS STRENGTHEN THE GROUP'S PRESENCE ON THE EASTERN SEABOARD AND BRING TO 42 THE NUMBER OF PROPERTIES CONTROLLED BY THE ACCOR/QUALITY PACIFIC PARTNERSHIP IN AUSTRALIA 9302080174 930208 INTERNATIONAL BULGARIAN POWER PLANT GETS AID SOFIA BULGARIA THE FRENCH STATE ENERGY COMPANY ELECTRICITE DE FRANCE AGREED TO HELP MODERNIZE BULGARIA'S TROUBLED KOZLODUI NUCLEAR POWER COMPLEX THE FRENCH COMPANY WILL PROVIDE BULGARIA'S NATIONAL ELECTRIC CO WITH 26 MILLION FRENCH FRANCS 47 MILLION IN AID TO BE USED FOR NEW EQUIPMENT AND FRENCH TECHNICAL ASSISTANCE THE PLANT 125 MILES NORTH OF SOFIA NORMALLY GENERATES 40 OF BULGARIA'S ELECTRICITY NEEDS BUT MALFUNCTIONS FREQUENTLY FORCE TECHNICIANS TO SHUT DOWN THE SOVIETDESIGNED REACTORS ELECTRICITE DE FRANCE'S CHAIRMAN GILLES MENAGE SAID HE BELIEVES THE PLANT CAN BE BROUGHT UP TO ADEQUATE SAFETY STANDARDS 9302080173 930208 CONTINENTAL AIR JANUARY TRAFFIC HOUSTON CONTINENTAL AIRLINES SAID JANUARY TRAFFIC FELL 08 TO 327 BILLION REVENUE PASSENGER MILES FROM 33 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE 9302080172 930208 CANADIAN JOBLESS RATE EASES OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 11 IN JANUARY FROM 115 IN DECEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DROP IN THE JOBLESS RATE RESULTED MAINLY FROM A 04 DECLINE IN THE CIVILIAN LABOR FORCE IN JANUARY EMPLOYMENT SHOWED A SMALL GAIN IN JANUARY RISING 9000 FROM DECEMBER JANUARY WAS THE SIXTH CONSECUTIVE MONTH IN WHICH EMPLOYMENT HAS INCREASED 9302080171 930208 SPANISH BUDGET DEFICIT MADRID SPAIN'S BUDGET DEFICIT ON A CASH BASIS SWELLED 37 TO 1867 TRILLION PESETAS 158 BILLION IN 1992 FROM 1368 TRILLION PESETAS IN 1991 THE FINANCE MINISTRY SAID AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT THE DEFICIT ROSE TO 317 IN 1992 FROM 25 OF GDP IN 1991 THE MINISTRY SAID TOTAL EXPENDITURES INCREASED 12 IN 1992 TO 14153 TRILLION PESETAS WHILE REVENUE CLIMBED 93 TO 12286 TRILLION 9302080170 930208 HONG KONG'S INDUSTRIAL OUTPUT HONG KONG HONG KONG'S LEVEL OF INDUSTRIAL PRODUCTION ROSE 3 IN 1992'S THIRD QUARTER FROM A YEAR EARLIER THE GOVERNMENT SAID THE DATA WHICH ISN'T SEASONALLY ADJUSTED SHOWED A RISE OF 79 FROM THE SECOND QUARTER ON A YEARTOYEAR BASIS THE LATEST FIGURE FOLLOWED AN INCREASE OF 33 IN THE SECOND QUARTER AND NO CHANGE IN THE FIRST QUARTER THIRDQUARTER PRODUCTION GREW FASTEST FROM A YEAR EARLIER IN THE PAPER PRODUCTS AND PRINTING INDUSTRY CLIMBING 18 THE FOOD BEVERAGES AND TOBACCO INDUSTRY ROSE 11 WHILE TEXTILE PRODUCTION GAINED 57 THE MOST MARKED DECLINES OVER THE QUARTER WERE RECORDED IN THE CHEMICAL AND RUBBERPRODUCTS INDUSTRY WHICH DROPPED 84 THE BASICMETAL AND FABRICATEDMETALPRODUCT INDUSTRY DECLINED 76 9302080169 930208 MERCEDESBENZ CUTBACK BONN MERCEDESBENZ AG A GERMAN LUXURY CAR MAKER SAID IT WOULD EXTEND ITS SHORTENED WORKING SHIFTS INTO MARCH IT SAID IT WILL TEMPORARILY IDLE ITS AUTO WORKERS FOR FOUR DAYS IN MARCH MERCEDES A UNIT OF INDUSTRIAL GIANT DAIMLERBENZ AG HAS IMPOSED SHORTENED WORKING SHIFTS IN ITS PLANTS SINCE NOVEMBER SHORTENED WORKING SHIFTS ARE A GERMAN PRACTICE THAT CAN INCLUDE EITHER A SHORTENED WORK DAY OR THE TEMPORARY CLOSURE OF A FACTORY GERMAN INDUSTRY USES THE SHORTENED WORKING SHIFTS TO CUT PRODUCTION AND TO AVOID LAYOFFS 9302080168 930208 SINGAPORE TOURISM GROWTH SINGAPORE THE SINGAPORE TOURISM INDUSTRY JUMPED BACK TO DOUBLEDIGIT GROWTH IN 1992 AS 59 MILLION PEOPLE VISITED THE COUNTRY COMPARED WITH 54 MILLION IN 1991 SINGAPORE TOURIST PROMOTION BOARD FIGURES SHOWED THE INCREASE OF 11 WAS SIGNIFICANTLY HIGHER THAN THE 68 INCREASE FORECAST AT THE BEGINNING OF 1992 LATER REVISED TO 79 PEK HOCK THIAM EXECUTIVE DIRECTOR OF THE BOARD SAID 9302080167 930208 SOUTHWEST AIRLINES TRAFFIC DALLAS SOUTHWEST AIRLINES REPORTED JANUARY TRAFFIC INCREASED 22 THE AIRLINE FLEW 12 BILLION REVENUE PASSENGER MILES UP FROM 9494 MILLION IN JANUARY 1992 A REVENUE PASSSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED INCREASED TO 612 FROM 573 9302080166 930208 REXENE REACTS TO ALLEGATIONS DALLAS REXENE CORP SAID IT APPOINTED A SPECIAL COMMITTEE AND RETAINED OUTSIDE LEGAL COUNSEL TO INVESTIGATE A FORMER CHAIRMAN'S ALLEGATIONS OF WRONGDOING BY CERTAIN COMPANY OFFICERS WILLIAM J GILLIAM A FORMER CHAIRMAN WHO RESIGNED IN MARCH MADE THE ALLEGATIONS A COMPANY SPOKESMAN WOULDN'T ELABORATE ON THE SPECIFICS OF THE ALLEGED WRONGDOING BUT DID SAY THAT CERTAIN CURRENT OFFICERS AS WELL AS FORMER OFFICERS WERE NAMED IN THE ALLEGATIONS THE COMPANY ALSO SAID NO LAWSUITS HAD BEEN FILED RELATING TO THIS ISSUE REXENE WHICH MAKES POLYETHYLENE AND POLYPROPYLENE EMERGED FROM BANKRUPTCYLAW PROCEEDINGS IN SEPTEMBER 9302080165 930208 LETTERS TO THE EDITOR FEDERAL HEALTH PLAN A COSTCONTROL SUCCESS IN REBUTTAL TO JOHN C GOODMAN'S JAN 7 EDITORIALPAGE ARTICLE MANAGED COMPETITION TOO LITTLE COMPETITION GIVEN THE HARSH REALITIES OF TODAY'S HEALTHCARE SYSTEM AT LEAST 35 MILLION AMERICANS UNINSURED STRATOSPHERIC HEALTHCARE COSTS AND A HEALTHINSURANCE MARKET WIDELY AND RIGHTFULLY CASTIGATED FOR MAKING THOSE PROBLEMS WORSE IT BOGGLES THE MIND THAT SOME STILL PREFER THE STATUS QUO ESPECIALLY TROUBLESOME IS MR GOODMAN'S DEFENSE OF OUR CURRENT HEALTHINSURANCE MARKETPLACE WHICH REWARDS INSURERS FOR RISK SELECTION THAT IS IT REWARDS INSURERS FOR CHARGING LOW RATES TO HEALTHY PEOPLE AND VERY HIGH RATES TO OR REFUSING TO COVER PEOPLE WHO ARE LIKELY TO NEED HEALTH CARE THAT ACCORDING TO MR GOODMAN IS NEARLY AN IDEAL INSURANCE MARKET ACCORDINGLY HE BRANDED THE FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM FEHBP AS A MISDIRECTED GOVERNMENT ENDEAVOR THIS DISTORTION CANNOT GO UNCORRECTED THE COSTS OF FEHBP WHICH FEATURES CONSUMER CHOICE AMONG MANY HEALTH PLANS WITH NONE OF MR GOODMAN'S RISK SELECTION TECHNIQUES ALLOWED HAVE NOT RISEN AS FAST AS MOST OTHER HEALTH PROGRAMS ACCORDING TO A RECENT STUDY THE ANNUAL GROWTH OF PRIVATE EMPLOYER PREMIUMS BETWEEN 1980 AND 1991 WAS 144 IN CONTRAST FEHBP PREMIUMS GREW AT A 108 RATE OVER THE SAME PERIOD OUR OWN PREMIUM RATE INCREASES IN THAT PROGRAM OVER THE PAST FOUR YEARS WE COVER ABOUT 40 OF THIS MARKET AND OUR SUBSCRIBERS NEED AND USE HEALTH CARE HAVE AVERAGED 8 ONE OF THE KEYS TO FEHBP'S COSTCONTROL SUCCESS HAS BEEN THE EXPANSION OF MANAGED CARE PROGRAMS INCLUDING MANY HEALTH MAINTENANCE ORGANIZATIONS AND PREFERRED PROVIDER ORGANIZATIONS SINCE THE EARLY 1980S WHEN PATIENT COSTSHARING WAS INTRODUCED THESE PROGRAMS HAVE ENABLED US TO INCREASE BENEFITS CONTAIN COSTS AND ACHIEVE HIGH SERVICE LEVELS WITHOUT LARGE DEDUCTIBLES OR COPAYMENTS THE OTHER KEY TO SUCCESS IS THAT FEHBP HAS MOSTLY AVOIDED HEAVYHANDED GOVERNMENTAL ACTION IT IS A PUBLIC/PRIVATE PARTNERSHIP WITH GOVERNMENT SETTING THE REGULATORY FRAMEWORK AND PERFORMANCE STANDARDS AND PRIVATE HEALTH PLANS MANAGING HEALTHCARE COSTS AND DELIVERING THE HIGH LEVELS OF CUSTOMER SERVICE THAT A COMPETITIVE PRIVATE MARKET DEMANDS 9302080164 930208 MUREX TO CUT WORK FORCE NORCROSS GA INTERNATIONAL MUREX TECHNOLOGIES CORP SAID IT PLANS TO TRIM ITS WORK FORCE ABOUT 9 BY ELIMINATING 70 JOBS AT ITS MUREX DIAGNOSTICS LTD UNIT THE MEDICALDIAGNOSTICS CONCERN SAID THE JOBS WILL BE CUT FROM MUREX DIAGNOSTICS' OPERATIONS IN BRITAIN THE COMPANY SAID THE CUTS ARE PART OF A RESTRUCTURING AND CONSOLIDATION PLAN THAT WAS ANNOUNCED IN OCTOBER A COMPANY SPOKESWOMAN WOULDN'T DISCLOSE THE ANTICIPATED COST OF THE JOB CUTS 9302080163 930208 HONDO OIL & GAS FILING ROSWELL NM HONDO OIL & GAS CO SAID IT FILED A NOTICE OF INTENT WITH ALASKA FOR A PIPELINE RIGHTOFWAY TO MOVE NATURAL GAS FROM CANADA TO KENAI ALASKA UNDER THE PROPOSAL THE GAS AT KENAI WOULD BE CONVERTED INTO LIQUEFIED NATURAL GAS AND PUT INTO TANKERS FOR SALE IN THE PACIFIC RIM HONDO SAID THE PIPELINE WOULD BE DESIGNED TO HANDLE A MINIMUM OF TWO BILLION CUBIC FEET OF GAS DAILY THE COMPANY SAID WILLIAM DAILY A HONDO VICE PRESIDENT SAID THE PIPELINE AND FACILITY THAT WOULD LIQUEFY THE GAS COULD COST MORE THAN 10 BILLION HE SAID THE COMPANY WAS TRYING TO LINE UP A GROUP OF NATURAL GAS PRODUCERS CUSTOMERS AND GOVERNMENTS TO FINANCE CONSTRUCTION AND HE DESCRIBED THE PROJECT AS BEING IN THE CONCEPTUAL PHASE 9302080162 930208 TAKE YOUR PICK JOBS OR PROTECTIONISM BY JOHN H MAKIN PRESIDENT CLINTON HAS FREQUENTLY SAID HE WANTS MORE US JOB GROWTH AS RECENTLY AS LAST THURSDAY HE CALLED JOBS THE KEY THING IN THE ECONOMIC TURNAROUND BUT IN THE SAME WEEK THE PRESIDENT PUSHED FOR JOBS HE AND HIS NEW TRADE REPRESENTATIVE MICKEY KANTOR WERE FLIRTING WITH HIGHER TARIFFS FOR OIL STEEL AND AUTOMOBILES THE CLINTON TEAM ALSO SHOWED SIGNS OF ABANDONING THE FAST TRACK IN THE TRADE NEGOTIATIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE A CLINTON TILT TOWARD PROTECTIONISM WOULD IN FACT DESTROY JOBS FASTER THAN ALMOST ANY OTHER POLICY PROTECTIONISM COULD IN FACT END UP ELIMINATING MORE THAN THE 250000 JOBS THE PRESIDENT HOPES TO CREATE WITH HIS ECONOMIC STIMULUS PACKAGE IT IS CLEAR THAT MR CLINTON IS IN A BIND EVEN WITHOUT THE DAMAGE OF PROTECTIONISM HIS EXPENSIVE SHORTRUN STIMULUS PACKAGE COULD ACTUALLY END UP REDUCING US JOB GROWTH GIVEN THE CURRENT STRENGTH OF THE ECONOMY A STIMULUS PACKAGE THAT TAKES THE FORM OF INCREASED SPENDING ON PUBLIC WORKS AND INCREASED INVESTMENT INCENTIVES SENDS THE WRONG MESSAGE ABOUT MR CLINTON'S COMMITMENT TO DEFICIT REDUCTION AND RUNS THE RISK THAT CONGRESS WILL WANT TO LADLE ON MORE SPENDING SO THAT THE DEFICIT REDUCTION INITIATIVE LOSES MOMENTUM BEYOND THAT MORE US SPENDING AND INVESTMENT WILL REQUIRE MORE CAPITAL INFLOWS AND SO WILL RESULT IN A LARGER TRADE AND CURRENTACCOUNT DEFICIT AND POSSIBLY WILL REQUIRE A STRONGER DOLLAR SO IT IS NOT HARD TO SEE WHY MR CLINTON IS REACHING FOR THE MOST OBVIOUS TOOL IN THE ECONOMIC KIT PROTECTIONISM THE ARGUMENT FOR PROTECTIONISM IS ALWAYS SIMPLE IMPORTING LESS FOREIGN STEEL OR FEWER TEXTILES SUPPOSEDLY MEANS MORE JOBS FOR AMERICANS THE APPROACH IN THE CLINTON ADMINISTRATION MAY BE CLOTHED IN RHETORIC ABOUT HUMAN RIGHTS THUS FOR EXAMPLE IT IS CONVENIENT FOR THE US TO BOYCOTT POSTTIANANMEN CHINA WHILE PUNISHING THE CHINESE GERONTOCRACY TRADE SANCTIONS ALSO BLOCK THE COMPETITION OF LOWCOST CHINESE TEXTILES FROM US MARKETS THE PROBLEM WITH PROTECTIONISM THOUGH IS THAT IT GIVES DOMESTIC PRODUCERS LICENSE TO INCREASE PRICES AND REDUCE QUALITY AND THEREBY ULTIMATELY BECOMES INFLATIONARY THE HIGHER PRICES REDUCE THE REAL PURCHASING POWER OF AMERICAN WORKERS AND CONSTITUTE AN ESPECIALLY REGRESSIVE TAX OF THE SORT THAT MR CLINTON HAS SAID HE WISHES TO AVOID LOWINCOME WORKERS ARE HURT THE MOST DEMAND FALLS JOBS DISAPPEAR IN ADDITION FOREIGN COUNTRIES RETALIATE BY REDUCING OPPORTUNITIES FOR AMERICAN EXPORTERS AND THEIR FACTORY EMPLOYEES THE IRONY IN THE CLINTON ADMINISTRATION'S FLIRTATION WITH PROTECTIONISM IS THAT IT IS EXPORTS THAT BROUGHT US OUT OF THE RECESSION BETWEEN THE FOURTH QUARTER OF 1988 AND THE FOURTH QUARTER OF 1991 US EXPORTS MEASURED IN 1987 DOLLARS GREW AT AN ANNUAL RATE OF 86 OR MORE THAN 20 TIMES THE MEAGER 04 GROWTH RATE OF THE WHOLE ECONOMY DURING THAT SAME PERIOD AMERICAN IMPORTS GREW AT A 24 ANNUAL RATE WELL BELOW ONETHIRD OF THE GROWTH RATE OF EXPORTS AMERICAN EXPORTS HAVE GROWN MORE RAPIDLY THAN THOSE OF ANY OTHER INDUSTRIAL COUNTRY OVER THE PAST FIVE YEARS AND HAVE HELPED TO CUSHION THE SLOWDOWN IN US GROWTH IN A SLOWING WORLD ECONOMY THE FUTURE FOR AMERICAN EXPORTERS LOOKS EVEN BRIGHTER AMERICAN PRODUCERS HAVE MADE TREMENDOUS GAINS IN INCREASING PRODUCTIVITY AND REDUCING UNIT LABOR COSTS AND ARE NOW POISED TO MAKE INCREASING PROGRESS SELLING INTO WORLD MARKETS BY THE END OF LAST YEAR AMERICAN PRODUCTIVITY GROWTH HAD RISEN TO 4 WHILE UNIT LABOR COSTS WERE VIRTUALLY FLAT THIS PERFORMANCE IS FAR SUPERIOR TO THAT OF EUROPE AND JAPAN THE SUPPOSED ECONOMIC POWERHOUSES THAT THE CLINTON CAMPAIGN TOLD US TO FEAR IN THOSE PLACES PRODUCTIVITY GROWTH IS STAGNATING WHILE UNIT LABOR COSTS ARE RISING RAPIDLY HIGHER PRODUCTIVITY HAS OF COURSE ALSO MEANT SERIOUS PRESSURE ON AMERICAN JOBS AMERICAN COMPANIES LOOK AT THE AUTO MAKERS HAVE LEARNED HOW TO MAKE MORE WIDGETS WITH FEWER HANDS BUT OTHER FACTORS HAVE CONTRIBUTED TO THE PUNISHMENT OF THE AMERICAN JOB MACHINE THE FEDERAL GOVERNMENT'S HEAVY TAXES ON THE EMPLOYMENT OF AMERICAN LABOR HAVE COST US JOBS SO HAS A 154 PAYROLL TAX SO HAVE MANDATED HEALTH BENEFITS AND COSTLY PENSION AND RETIREMENT BENEFITS AND AS OF FRIDAY MANDATED FAMILYLEAVE BENEFITS THESE REGULATIONS HAVE PUSHED FIRMS TO SUBSTITUTE CAPITAL FOR LABOR OR USE MORE INEXPENSIVE LABOR EITHER BY IMPORTING COMPONENTS ASSEMBLED ABROAD OR BY LOCATING PRODUCTION FACILITIES ABROAD IN A WORLD WHERE UNSKILLED LABOR IS INCREASINGLY IN EXCESS SUPPLY THE ONLY WAY TO ENCOURAGE EMPLOYMENT GROWTH WHILE CUTTING THE BUDGET DEFICIT IS TO REVERSE SOME OF THE REGULATIONS THAT RAISE THE COST OF LABOR ONE IMPORTANT STEP WOULD BE TO CUT PAYROLL TAXES AND COMPENSATE FOR THE LOST REVENUE THROUGH CUTS IN FEDERAL SPENDING PAYROLL TAX CUTS HAVE MANY BENEFITS IF FOR EXAMPLE THE PRESIDENT PUTS THROUGH HIGHER ENERGY TAXES A PAYROLL TAX WOULD OFFSET THE REGRESSIVE IMPACT OF HIGHER ENERGY TAXES UNDER THIS APPROACH IT IS IMPORTANT TO FOCUS ON ENTITLEMENTS REPLACING DEDUCTIBILITY OF EMPLOYERPAID HEALTHINSURANCE PREMIUMS WITH A TAX CREDIT TO HOUSEHOLDS FOR THE PURCHASE OF HEALTH INSURANCE WOULD HELP CUT HEALTHCARE COSTS THIS WOULD SHIFT MORE OF THE RESPONSIBILITY ONTO INDIVIDUALS AND SO WOULD LIMIT THE GROWTH OF DEMAND FOR HEALTH CARE SUCH A MEASURE ALONE WOULD SAVE ABOUT 200 BILLION OVER THE NEXT FIVE YEARS ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE IT WOULD ALSO SOAK THE RICH IN THE CLINTONIAN SENSE BY INCREASING THE SHARE OF HEALTHCARE COSTS PAID BY HIGHINCOME INDIVIDUALS WHO NOW BENEFIT DISPROPORTIONATELY FROM THE FULL DEDUCTIBILITY OF HEALTHCARE PREMIUMS LIMITING INFLATIONINDEX INCREASES IN SOCIAL SECURITY BENEFITS TO TWOTHIRDS OF THE INFLATION RATE WOULD ALSO REDUCE THE BUDGET DEFICIT WITHOUT UNDULY HARMING AMERICA'S RETIREES IT IS WELL KNOWN THAT THE CONSUMER PRICE INDEX THE INFLATION INDEX USED TO SET COSTOFLIVING ADJUSTMENTS FOR SOCIAL SECURITY BENEFITS OVERSTATES INFLATION THE TWOTHIRDS INDEXING FORMULA WOULD BE BOTH FAIR AND PRUDENT A NEGATIVE INCOME TAX PROVISION FOR AMERICA'S OVER65 POPULATION WOULD CUSHION RETIREES WHO ARE PUSHED BELOW THE POVERTY LINE BY THESE MEASURES IF MR CLINTON IS REALLY SERIOUS ABOUT INCREASING THE NUMBER OF AMERICAN JOBS CUTTING THE BUDGET DEFICIT AND REDUCING INTEREST RATES HE SHOULD SERIOUSLY CONSIDER INCREASING THE INCENTIVES TO SAVE WHILE REDUCING THE INCENTIVES TO BORROW A SIMPLE PROPOSAL WHEREBY ONLY ONE HALF OF INTEREST EXPENSE WOULD BE DEDUCTIBLE WHILE ONLY ONE HALF OF INTEREST INCOME WOULD BE TAXABLE BOTH FOR CORPORATIONS AND HOUSEHOLDS WOULD INCREASE SAVINGS WHILE REDUCING THE RELIANCE ON BORROWING IT WOULD ALSO ADD AT LEAST 20 BILLION TO ANNUAL REVENUES SIMULTANEOUSLY CAPITALGAINS TAXES SHOULD BE INDEXED SO THAT INVESTORS NEED NOT PAY TAXES ON ILLUSORY INFLATION GAINS IT IS WELL RECOGNIZED THAT THE MAJOR TAX REFORM LEFT UNDONE IN 1986 WAS A MOVE TOWARD THE PROPER TREATMENT OF INCOME FROM CAPITAL INTEREST INDEXING AND CAPITAL GAINS INDEXING TOGETHER WITH PROVISIONS THAT INDEX DEPRECIATION CHARGES FOR INFLATION WOULD GO A LONG WAY TOWARD STIMULATING INVESTMENT WHILE REDUCING HEAVY RELIANCE ON DEBT BY HOUSEHOLDS AND SOME FIRMS IT IS A SIMPLE FACT THAT NONE OF THE WAYS OF CREATING JOBS WHILE SIMULTANEOUSLY REDUCING THE BUDGET DEFICIT ARE POLITICALLY ATTRACTIVE AT THE OUTSET BUT SEEKING A WORKABLE SOLUTION HERE IS A VALUABLE ALTERNATIVE TO INCREASING THE BUDGET DEFICIT PUSHING UP INFLATION OR WORST OF ALL PUSHING FOR PROTECTIONISM I AM WRITING THESE THOUGHTS AS I RETURN FROM THE RECENT WORLD ECONOMIC FORUM AT DAVOS SWITZERLAND TO HEAR THE DOOMSDAY TRADEWAR STORIES AND GROWING PROTECTIONIST PRESSURES CIRCULATING AT THAT GATHERING IS TO KNOW THAT THE WORLD IS IN DESPERATE NEED OF A GOOD DOSE OF SENSIBLE AMERICAN ECONOMIC LEADERSHIP MR MAKIN A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE IS FORMER CHAIRMAN OF THE JAPANUS FRIENDSHIP COMMISSION 9302080161 930208 WHO'S NEWS DIED MARVIN RUSHKOFF 63 FORMER CHAIRMAN OF AMERICAN HEALTHCARE MANAGEMENT INC KING OF PRUSSIA PA OF CANCER 9302080160 930208 AUTOTOTE TO SELL SHARES TO PUBLIC NEWARK DEL AUTOTOTE CORP A MAKER OF COMPUTERIZED WAGERING EQUIPMENT SAID IT PLANS TO SELL THREE MILLION CLASS A SHARES TO THE PUBLIC AUTOTOTE SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT TWO MILLION SHARES WILL BE SOLD BY THE COMPANY AND ONE MILLION WILL BE SOLD BY CERTAIN OF ITS SHAREHOLDERS INSIDERS INCLUDING THE ESTATE OF FORMER CHAIRMAN JAMES H PIERCE AND WEMBLEY STADIUM LTD IN LONDON AMONG OTHERS NOW OWN 63 OF THE COMPANY BUT WILL CONTROL 42 AFTER SELLING THEIR SHARES AUTOTOTE CURRENTLY HAS 53 MILLION SHARES OUTSTANDING PROCEEDS WILL BE USED TO REPAY DEBT THE UNDERWRITING WILL BE LED BY OPPENHEIMER & CO 9302080158 930208 FLORIDA HAWAII RESIDENTS FACE JUMPS IN INSURANCE RATES CANCELED POLICIES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE HURRICANES THAT HIT FLORIDA AND HAWAII LAST FALL ARE STILL TAKING THEIR TOLL ON HOMEOWNERS IN THOSE STATES IN THE FORM OF HIGHER INSURANCE RATES AND CANCELED POLICIES TRAVELERS CORP AND PRUDENTIAL INSURANCE CO OF AMERICA HAVE BECOME THE FIRST MAJOR INSURERS TO TIE RATE INCREASES ON FLORIDA HOMEOWNERS TO HURRICANE ANDREW TRAVELERS SAID IT HAS WON RATE INCREASES FROM THE STATE INSURANCE COMMISSION OF AS MUCH AS 15 AND PRUDENTIAL IS SEEKING TO RAISE RATES AS MUCH AS 23 IN HAWAII SEVERAL INSURANCE COMPANIES ARE REFUSING TO WRITE NEW HOMEOWNER POLICIES OR RENEW EXISTING ONES IN THE AFTERMATH OF HURRICANE INIKI CREATING A CRISIS FOR HOMEOWNERS AND PUTTING A CLOUD OVER THE REAL ESTATE MARKET PACIFIC INSURANCE CO A UNIT OF ITT CORP HARTFORD CONN IS THE LATEST TO WITHDRAW FROM THE HAWAIIAN MARKET BRINGING TO THREE THE NUMBER OF MAJOR INSURERS REFUSING TO COVER HOMES AGAINST HURRICANE DAMAGE TOGETHER THEY REPRESENT 27 OF THE HOMEOWNER INSURANCE MARKET IN HAWAII SAYS AM BEST CO OTHER COMPANIES INCLUDING MARKET LEADERS STATE FARM MUTUAL FIRE INSURANCE CO AND SEARS ROEBUCK & CO'S ALLSTATE INSURANCE CO UNIT ARE RESTRICTING THE AMOUNT OF NEW BUSINESS THEY WILL ACCEPT IN HAWAII THE UPSHOT IS THAT HOMEOWNERS ABANDONED BY THEIR CURRENT INSURER ARE BEING FORCED TO BUY INSURANCE FROM THE STATE WHICH SERVES AS THE INSURER OF LAST RESORT AT RATES THREE TO FOUR TIMES WHAT THEY USED TO PAY THE INSURANCE COMPANIES WANT VERY LITTLE TO DO WITH INCREASING THEIR MARKET SHARE SAID JOHN SNYDER AM BEST SENIOR VICE PRESIDENT BUSINESSES ALSO ARE FEELING THE SQUEEZE IT'S BEEN KIND OF WILD SAID HONOLULU INSURANCE AGENT JOHN CAVANAGH MR CAVANAGH WHO SPECIALIZES IN COMMERCIAL INSURANCE CONTACTED INSURANCE COMPANIES IN CALIFORNIA TO FIND COVERAGE FOR BUSINESSES TURNED DOWN BY LOCAL INSURERS INSURERS USED TO LOOK UPON HAWAII AS A TERRIFIC MARKET ALL BUT IMMUNE TO HURRICANES BUT INIKI CHANGED ALL THAT EATING UP EVERY DOLLAR OF PREMIUMS EVER PAID IN THE STATE HAWAIIANS PAID 62 MILLION FOR HOMEOWNERS INSURANCE LAST YEAR AND INIKI CAUSED 16 BILLION IN INSURED LOSSES THE CRISIS AFFECTS THE REAL ESTATE MARKET TOO BECAUSE BANKS REFUSE TO LOAN MONEY ON HOMES WITHOUT INSURANCE FRANCINE TABA A VICE PRESIDENT OF HONOLULUBASED LIBERTY BANK SAID SOME MORTGAGE APPLICATIONS HAVE BEEN PUT ON HOLD WHILE THE HOMEBUYERS LOOK FOR INSURANCE THEY'RE RUNNING AROUND TRYING TO FIND SOMETHING HAWAII INSURANCE COMMISSIONER LINDA CHU TAKAYAMA PLANS TO MEET WITH OFFICIALS IN WASHINGTON THIS WEEK FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP FANNIE MAE AND FREDDIE MAC IMPORTANT SOURCES OF LIQUIDITY FOR THE MORTGAGE MARKET REFUSE TO BUY MORTGAGES ON UNINSURED HOMES MS TAKAYAMA BLAMES THE CRUNCH ON A SHORTAGE OF REINSURANCE WHICH SERVES AS INSURANCE FOR INSURERS MAKING IT POSSIBLE FOR THEM TO DO BUSINESS IN AREAS WHERE A SINGLE EVENT SUCH AS A HURRICANE COULD WIPE THEM OUT THE REINSURANCE MARKET HAS BEEN SHRINKING SINCE THE LATE 1980S FOLLOWING SUCH COSTLY DISASTERS AS HURRICANE HUGO AND THE PIPER ALPHA OILRIG DISASTER IN THE NORTH SEA UNLIKE FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER WHO HAS TAKEN LEGAL ACTION TO DISCOURAGE INSURERS FROM WITHDRAWING MS TABA HAS REFRAINED FROM TOUGH ACTION SHE ARGUES THAT GIVEN THE REINSURANCE CRISIS IT DOES NO GOOD FORCING THEM TO STAY THAT'S BECAUSE IF ANOTHER STORM COMES THE INSURERS WOULD FAIL AND NOT HAVE MONEY TO PAY CLAIMS THE PROPOSED RATE INCREASE IN FLORIDA A SPOKESMAN FOR TRAVELERS SAID TAKES INTO ACCOUNT HIGHER REINSURANCE COSTS AND A HIGHER WINDSTORM RISK BECAUSE OF ANDREW THE FLORIDA INSURANCE DEPARTMENT HAS PUT PRUDENTIAL'S RATE INCREASE ON HOLD AND HAS ASKED THE INSURER FOR MORE INFORMATION A PRUDENTIAL SPOKESWOMAN SAID THE HIGHER PREMIUMS ARE JUSTIFIED BECAUSE ONCE WE ADD THE ANDREW EXPERIENCE TO OUR MODELS IT'S CLEAR THE RATES WE COULD CHARGE WERE NOT ADEQUATE TO COVER LOSS POTENTIAL 9302080157 930208 BANCO SANTANDER SEEKS HIGHER STAKE IN FIRST FIDELITY SPECIAL TO THE WALL STREET JOURNAL SANTANDER SPAIN BANCO DE SANTANDER SA ONE OF SPAIN'S FIVE BIGGEST BANKS IS CONSIDERING INCREASING ITS STAKE IN FIRST FIDELITY BANCORP OF THE US TO 23 FROM 16 SANTANDER CHAIRMAN EMILIO BOTIN SAID SATURDAY AT THE COMPANY'S ANNUAL MEETING MR BOTIN SAID SANTANDER'S BOARD IS STUDYING THE POSSIBILITY OF RAISING ITS STAKE IN FIRST FIDELITY BUT THAT NO DECISION HAD YET BEEN TAKEN HE DECLINED TO SAY HOW SANTANDER MIGHT RAISE ITS STAKE IN FIRST FIDELITY A SPOKESMAN FOR FIRST FIDELITY SAID THE COMPANY HAS EXPECTED SANTANDER TO RAISE ITS STAKE IN FIRST FIDELITY WHEN SANTANDER BOUGHT ITS INITIAL 13 STAKE IN FIRST FIDELITY IN 1991 THE SPANISH BANK RECEIVED WARRANTS ALLOWING IT TO RAISE ITS STAKE TO 23 OVER FOUR YEARS SANTANDER HAS ALREADY ANNOUNCED PLANS TO EXERCISE WARRANTS LATER THIS YEAR BRINGING ITS HOLDING IN FIRST FIDELITY FROM 16 TO ABOUT 19 THE FIRST FIDELITY SPOKESMAN SAID WITH MORE THAN 31 BILLION IN ASSETS FIRST FIDELITY IS THE 24TH LARGEST BANK HOLDING COMPANY IN THE US THE CHAIRMAN SAID SANTANDER INTENDS TO EXPAND ITS OVERSEAS OPERATIONS IN ORDER TO PROTECT ITS EARNINGS AND ASSETS FROM THE INEVITABLE ECONOMIC CYCLES WHICH AFFECT DIFFERENT COUNTRIES AND GEOGRAPHIC AREAS AT DIFFERENT INTERVALS I HOPE THE MOMENT COMES WHEN 50 OF OUR INCOME AND ASSETS COME FROM INTERNATIONAL OPERATIONS MR BOTIN SAID THAT IS THE GROUP'S OBJECTIVE ALTHOUGH I DON'T KNOW HOW LONG IT WILL TAKE SANTANDER EARNED 205 MILLION FROM ITS BRANCHES AND AFFILIATED BANKS DURING 1992 THE BANK REPORTED THAT CONSOLIDATED NET INCOME FOR THE GROUP ROSE 12 TO 6615 BILLION PESETAS 5632 MILLION IN 1992 FROM 5917 BILLION PESETAS IN 1991 FIRST FIDELITY'S PROFIT CAN'T BE CONSOLIDATED INTO SANTANDER'S RESULTS UNLESS THE SPANISH BANK HOLDS AT LEAST A 20 STAKE IN THE LAWRENCEVILLE NJ CONCERN MR BOTIN REPEATEDLY DENIED THAT SANTANDER HAD ANY INTENTION OF ACQUIRING OR MERGING WITH ANOTHER SPANISH BANK I'VE BEEN SAYING IT FOR THE LAST FIVE YEARS AND I'LL CONTINUE TO SAY THAT BANCO SANTANDER ISN'T CONSIDERING EITHER BUYING OR MERGING WITH ANY OTHER SPANISH BANK AND WILL CONTINUE EXPANDING ON ITS OWN THE CHAIRMAN SAID MR BOTIN SAID SANTANDER WOULD BE INTERESTED IN PARTICIPATING IN THE PENDING PARTIAL PRIVATIZATION OF THE STATE BANKING GROUP ARGENTARIA ONE OF SPAIN'S BIGGEST BANKING CONCERNS BUT HE STRESSED THAT SANTANDER IS INTERESTED IN BUYING ARGENTARIA'S SHARES ONLY AS A FINANCIAL INVESTMENT WITH VIEW TO A LATER SALE AS OPPOSED TO A STRATEGIC INVESTMENT WITH A VIEW TOWARD PARTICIPATING IN MANAGEMENT SHAREHOLDERS APPROVED AN 83 INCREASE IN THE 1992 DIVIDEND TO 260 PESETAS A SHARE TO BE PAID OUT AT THREEMONTH INTERVALS BEGINNING APRIL 30 SHAREHOLDERS ALSO APPROVED A 25BILLIONPESETA CONVERTIBLE BOND OFFER AND A 650BILLIONPESESTA CAPITAL INCREASE TO COVER THE BOND OFFERING MR BOTIN SAID 1992 HAD BEEN POSSIBLY THE MOST DIFFICULT YEAR FOR THE BANK SINCE 1982 WITH THE BANK FACING SLOW GROWTH HIGH INTEREST RATES RISING BAD LOANS AND CURRENCY TURBULENCE BUT THE CHAIRMAN SAID HE WASN'T OVERLY PESSIMISTIC ABOUT 1993 HE SAID THE BANK'S PROVISIONAL RESULTS FOR JANUARY SHOWED IT HAD ENJOYED ITS BEST MONTH'S PERFORMANCE IN ITS HISTORY 9302080156 930208 WHO'S NEWS JP MORGAN & CO JP MORGAN & CO NEW YORK T TIMOTHY RYAN JR FORMER CHIEF REGULATOR OF THE NATION'S THRIFT INSTITUTIONS IS JOINING THIS BANKING CONCERN'S JP MORGAN SECURITIES INC SUBSIDIARY AS A MANAGING DIRECTOR MR RYAN 47 YEARS OLD THE FORMER DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION WILL JOIN THE FIRM FEB 16 HE WILL SERVE AS A SENIOR INVESTMENT BANKER RESPONIBLE FOR DEVELOPING RELATIONSHIPS WITH FEDERAL GOVERNMENT AGENCIES GOVERNMENTSPONSORED ENTERPRISES AND INTERNATIONAL BANKING AGENCIES MR RYAN WAS A PARTNER AT THE WASHINGTON LAW FIRM REED SMITH SHAW & MCCLAY BEFORE JOINING THE OTS IN 1990 9302080155 930208 WHO'S NEWS MUELLER INDUSTRIES MUELLER INDUSTRIES WICHITA KAN RODMAN L DRAKE AND WILLIAM D O'HAGAN WERE ELECTED DIRECTORS AND JAMES R O'MARA RESIGNED AFTER TWO YEARS ON THE BOARD THE CHANGES RAISE BOARD MEMBERSHIP FOR THIS COPPERTUBE MANUFACTURER TO NINE MR DRAKE 48 YEARS OLD IS PRESIDENT OF DRAKE & CO AN INVESTMENT MANAGEMENT AND CONSULTING FIRM MR O'HAGAN 51 IS PRESIDENT AND CHIEF OPERATING OFFICER OF MUELLER MR O'MARA 49 PRESIDENT AND CHIEF EXECUTIVE OF ATLAS ENERGY GROUP INC SAID HE WAS APPOINTED TO A TWOYEAR TERM BY A SHARON STEEL CORP CREDITORS COMMITTEE WHICH HAS SINCE DISSOLVED MUELLER WAS FORMED IN THE REORGANIZATION OF SHARON STEEL 9302080154 930208 WHO'S NEWS HEES INTERNATIONAL BANCORP INC HEES INTERNATIONAL BANCORP INC TORONTO ROBERT HARDING 35 YEARS OLD WAS APPOINTED PRESIDENT AND MANAGING DIRECTOR EFFECTIVE MARCH 31 MR HARDING WHO IS CHIEF OPERATING OFFICER OF THIS MERCHANT BANKING AND HOLDING COMPANY WILL SUCCEED WILLARD L'HEUREUX 45 THURSDAY MR L'HEUREUX WAS APPOINTED PRESIDENT OF TRIZEC CORP A CALGARY ALBERTA REALESTATE CONCERN ALSO EFFECTIVE MARCH 31 HEES AND TRIZEC ARE BOTH PART OF THE EDPER GROUP OF COMPANIES WHICH IS CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN 9302080153 930208 FED VOTES TO HOLD SHORTTERM RATES FOR INTEREST STEADY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE ENDED ITS TILT TOWARD LOWER INTEREST RATES IN DECEMBER NOTING GROWING INDICATIONS OF A SOMEWHAT STRONGER EXPANSION THAN HAD SEEMED TO BE UNDER WAY EARLIER IN A UNANIMOUS DECISION THE 12 MEMBERS OF THE FED'S POLICYSETTING OPEN MARKET COMMITTEE VOTED AT THEIR DEC 22 MEETING TO HOLD SHORTTERM INTEREST RATES STEADY AND TO DECLARE THAT THE FED'S NEXT MOVE MIGHT BE EITHER TO LOWER OR TO RAISE THEM EXCEPT FOR A BRIEF PERIOD IN MID1992 THE FED POLICY MAKERS HAVE ENDED EACH MEETING SINCE JULY 1991 BY VOTING TO TILT TOWARD LOWER RATES THE FED HASN'T ACTUALLY CUT SHORTTERM INTEREST RATES SINCE SEPTEMBER A SUMMARY OF THE FED'S DELIBERATIONS WAS RELEASED FRIDAY AFTER THE CUSTOMARY SIXWEEK LAG FED POLICY MAKERS WHO MET AGAIN BEHIND CLOSED DOORS LAST WEEK HAVEN'T SIGNALLED ANY CHANGE IN MONETARY POLICY SINCE THEN THE DECEMBER DECISION DOESN'T PRECLUDE ANOTHER CUT ALTHOUGH IT MAKES IT UNLIKELY BUT THE FED DID NOTE THAT THE NEED FOR SOME EASING COULDN'T BE RULED OUT SHOULD THE EXPANSION AGAIN APPEAR TO BE FALTERING THE SUMMARY SHOWS THAT FED OFFICIALS ARE BEGINNING TO TALK ABOUT THE PROSPECT OF HIGHER INTEREST RATES A STRONGER ECONOMIC PERFORMANCE MIGHT RAISE QUESTIONS AS TO THE NEED FOR A TIGHTENING MOVE AT SOME POINT DURING THE YEAR AHEAD AS A MEANS OF MAINTAINING PROGRESS TOWARD PRICE STABILITY THE SUMMARY SAID ALTHOUGH FED OFFICIALS ANTICIPATED FURTHER REDUCTIONS IN THE INFLATION RATE SOME NOW EXPECTED SOMEWHAT LESS IMPROVEMENT THAN THEY HAD EARLIER THE SUMMARY NOTED IN REVIEWING THE IMPROVING ECONOMIC OUTLOOK SOME FED OFFICIALS POINTED TO ONE SUBSTANTIAL RISK NAMELY THAT WEAKENING ECONOMIES ABROAD COULD DEPRESS US EXPORTS AND EXERT A SIGNIFICANT CONSTRAINT ON THE NATION'S ECONOMY THE OPEN MARKET COMMITTEE CONSISTS OF THE SEVEN FED GOVERNORS IN WASHINGTON AND FIVE OF THE 12 DISTRICT BANK PRESIDENTS THE OTHER SEVEN PRESIDENTS PARTICIPATE IN THE DISCUSSION BUT CAN'T VOTE 9302080152 930208 WHO'S NEWS ASA LTD ASA LTD FLORHAM PARK NJ ROBERT JA IRWIN 65 YEARS OLD WAS ELECTED CHAIRMAN OF THIS CLOSEDEND INVESTMENT COMPANY FORMERLY DEPUTY CHAIRMAN HE SUCCEEDS WESLEY A STANGER 83 WHO CONTINUES AS TREASURER 9302080151 930208 WHO'S NEWS MORRISON KNUDSEN CORP MORRISON KNUDSEN CORP BOISE IDAHO JOHN W ROGERS JR 35YEAROLD PRESIDENT OF ARIEL CAPITAL MANAGEMENT INC OF CHICAGO WAS ELECTED TO THE BOARD OF THIS ENGINEERING AND CONSTRUCTION CONCERN WHICH INCREASED ITS DIRECTORS TO 12 9302080150 930208 WHO'S NEWS MOBIL CORP NAMES FOUR TO NEW POSITIONS AFTER NOTO PROMOTION FAIRFAX VA MOBIL CORP NAMED FOUR EXECUTIVES TO NEW POSITIONS FOLLOWING ITS EARLIER ANNOUNCEMENT THAT LUCIO A NOTO CURRENTLY CHIEF FINANCIAL OFFICER WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE MARCH 1 MR NOTO'S NEW TITLES HAVEN'T BEEN USED AT MOBIL SINCE 1984 THE OIL COMPANY NAMED ROBERT G WEEKS 56 YEARS OLD CURRENTLY SENIOR VICE PRESIDENT IN CHARGE OF CHEMICAL RESEARCH ENGINEERING AND ENVIRONMENTAL AFFAIRS AND REAL ESTATE AND LAND DEVELOPMENT TO SUCCEED MR NOTO 54 ROBERT O SWANSON 56 CURRENTLY EXECUTIVE VICE PRESIDENT INTERNATIONAL IN THE MARKETING AND REFINING DIVISION WAS NAMED TO SUCCEED MR WEEKS THOMAS C DELOACH JR 45 CURRENTLY VICE PRESIDENT OF SUPPLY AND TRADING IN THE MARKETING AND REFINING DIVISION WAS NAMED TO SUCCEED MR SWANSON JOHN C SIMPSON 49 CURRENTLY PRESIDENT OF THE MOBIL SOUTH INC A MARKETING AND REFINING UNIT WAS NAMED TO SUCCEED MR DELOACH 9302080149 930208 DYNAMICS RESEARCH SAYS NET ROSE 20 IN FOURTH QUARTER ON SMALL SALES GAIN BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL WILMINGTON MASS DYNAMICS RESEARCH CORP EXPECTS TO REPORT THAT NET INCOME FOR THE FOURTH QUARTER ROSE MORE THAN 20 TO ABOUT 17 MILLION OR 33 CENTS TO 34 CENTS A SHARE EXECUTIVES SAID THE MAKER OF COMPUTERIZED SYSTEMS FOR THE MILITARY SAID THE EARNINGS GROWTH CAME DESPITE REVENUE JUST SLIGHTLY ABOVE THE PRIOR YEAR IN THE YEARAGO QUARTER DYNAMICS RESEARCH HAD NET INCOME OF 14 MILLION OR 26 CENTS A SHARE ON REVENUE OF 327 MILLION ALBERT RAND PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW WE DID RATHER WELL HE SAID THE STRONG FOURTHQUARTER PROFIT REFLECTS THE FACT THAT SOME OF ITS MAJOR FIXEDPRICE CONTRACTS END AT THE END OF THE CALENDAR YEAR AND COST CONTROLS RESULTED IN IMPROVED RESULTS ABOUT 90 OF DYNAMICS' REVENUE LAST YEAR CAME FROM MILITARY BUSINESS BUT NONMILITARY REVENUE MAY RISE TO 13 THIS YEAR MOSTLY BECAUSE OF EXPANDED SALES OF AN ANALOGTODIGITAL RECORDER THAT SENSES MOTION DESPITE THE SHRINKING OF THE MILITARY BUDGET MR RAND SAID HE EXPECTS THE COMPANY'S REVENUE TO GROW BETTER THAN LAST YEAR DYNAMICS EXPECTS TO REPORT THAT NET INCOME FOR THE FULL YEAR ROSE 8 TO ABOUT 39 MILLION OR 75 CENTS TO 76 CENTS A SHARE FROM 36 MILLION OR 67 CENTS A SHARE REVENUE ROSE 44 TO 102 MILLION FROM 977 MILLION ALL PERSHARE FIGURES HAVE BEEN RESTATED TO REFLECT 10 STOCK DIVIDENDS IN FEBRUARY 1992 AND THIS MONTH LAST YEAR DYNAMICS CONTINUED TO GET MOST OF ITS REVENUE FROM A FEW BIG CONTRACTS ONLY ONE A CONTRACT TO MANAGE ENGINEERING SPECIFICATIONS FOR HANSCOM AIR FORCE BASE IN LEXINGTON MASS THAT AMOUNTED TO 15 MILLION LAST YEAR IS A LITTLE BIT AT RISK BECAUSE OF COMPETITIVE BIDDING THIS YEAR MR RAND SAID OTHER BIG CONTRACTS INCLUDE 20 MILLION FROM THE NAVY'S TRIDENT PROGRAM FOR ANALYZING SUBMARINE NAVIGATION SYSTEMS AND MANAGING CONFIGURATIONS 12 MILLION FROM THE AIR FORCE FOR TRACKING CONFIGURATIONS AND MAINTENANCE OF THE F16 AIRCRAFT AND 6 MILLION FOR WEAPON SYSTEMS MANAGEMENT INFORMATION SYSTEMS FOR THE PENATAGON MR RAND SAID THAT DYNAMICS IS TRYING TO WIN CONTRACTS OUTSIDE THE DEFENSE DEPARTMENT IT HAS A SMALL CONTRACT TO PERFORM CONTINUOUS EVALUATION OF RADAR SYSTEMS FOR THE FEDERAL AVIATION ADMINISTRATION AND WE'RE PRETTY OPTIMISTIC IT WILL CONTINUE TO GROW MR RAND SAID IT IS ALSO TRYING TO PENETRATE THE TREASURY AND THE TRANSPORTATION DEPARTMENTS ALL OF THEM REQUIRE LARGE INTEGRATED DATA SYSTEMS AND OUR TECHNOLOGY IS APPLICABLE HE SAID THAT NO QUESTION WE'RE CONCERNED ABOUT DEFENSE CUTBACKS BUT COMPUTERIZED OPERATIONS MANAGEMENT IS SOMETHING THE PENTAGON WILL NEED MORE OF AS IT CENTRALIZES OPERATIONS AND TRIES TO BECOME MORE EFFICIENT THOMAS GRAHAM VICE PRESIDENT FINANCE SAID THAT CAPITAL SPENDING THIS YEAR WILL PROBABLY ABOUT EQUAL LAST YEAR'S 42 MILLION IN ADDITION DYNAMICS RECENTLY BOUGHT ITS OFFICE BUILDING FOR 89 MILLION TAKING ADVANTAGE OF THE DEPRESSED NEW ENGLAND REAL ESTATE MARKET 9302080148 930208 ECONOMY GROWTH IN JOBS GAINED STRENGTH DURING JANUARY WIDE VARIETY OF INDUSTRIES SHARED IN 106000 RISE JOBLESS RATE DECREASED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JOB GROWTH BECAME MORE NOTICEABLE LAST MONTH THE LABOR DEPARTMENT SAID 106000 JOBS WERE CREATED ACROSS A WIDE VARIETY OF INDUSTRIES IN JANUARY AND THE UNEMPLOYMENT RATE DROPPED TO 71 OF THE WORK FORCE FROM 73 IN DECEMBER THE NEWJOB GROWTH WAS STILL MODEST COMPARED WITH THAT IN OTHER ECONOMIC RECOVERIES BUT IT WAS THE LARGEST RISE IN PAYROLL EMPLOYMENT SINCE A 171000 INCREASE IN JULY ALL THE GAINS SINCE THEN HAVE BEEN VERY SMALL THESE NUMBERS SHOW THAT THE ECONOMY IS ON TRACK SAID ALAN GAYLE CHIEF ECONOMIST FOR CRESTAR BANK IN RICHMOND VA THE INCREASE IN JOBS IS NOT LARGE BUT IT IS CONTINUING IN ANOTHER REPORT THE FEDERAL RESERVE BOARD SAID AMERICANS INCREASED THEIR DEBT LOADS AT A HEFTY 41 ANNUAL RATE OR BY 246 BILLION IN DECEMBER THE LARGEST ADVANCE SINCE FEBRUARY 1990 CONSUMER INSTALLMENT CREDIT ROSE 18 IN NOVEMBER THE JANUARY JOB GROWTH IS PROBABLY NOT LARGE ENOUGH TO DISSUADE PRESIDENT CLINTON FROM GIVING THE NATION A SHOT OF ECONOMIC STIMULUS IN A USUAL ECONOMIC RECOVERY MORE THAN 200000 NEW JOBS ARE CREATED EACH MONTH IF MORE AMERICANS DON'T FIND WORK IT MAY RESULT IN A SLOWDOWN IN CONSUMER SPENDING AND IN ECONOMIC PROGRESS INDEED MUCH OF THE DECLINE IN THE UNEMPLOYMENT RATE CAME BECAUSE 500000 PEOPLE DROPPED OUT OF THE LABOR FORCE POSSIBLY BECAUSE THEY HAD BECOME TOO DISCOURAGED ABOUT FINDING WORK THE RECENT PICKUPS IN INDUSTRIAL PRODUCTION RETAIL SALES AND FACTORY ORDERS HAVEN'T BEEN MATCHED BY A PICKUP IN NEW JOBS IN A RADIO ADDRESS OVER THE WEEKEND PRESIDENT CLINTON SAID OUR UNEMPLOYMENT RATE AT 71 IS STILL HIGHER THAN IT WAS AT WHAT WE THOUGHT WAS THE BOTTOM OF THE RECESSION OUR COUNTRY IS SIMPLY NOT PRODUCING ENOUGH NEW JOBS HIS LABOR SECRETARY ROBERT REICH REITERATED IN A TELEVISION APPEARANCE THAT THE CLINTON ADMINISTRATION IS LIKELY TO PROCEED WITH ITS PLAN TO STIMULATE THE ECONOMY DESPITE RECENT SIGNS OF STRENGTH BECAUSE THE ECONOMY ISN'T CREATING ENOUGH NEW JOBS THE JOB GROWTH IN JANUARY WAS WIDESPREAD THOUGH MOST WAS CENTERED IN THE SERVICE INDUSTRIES WHERE THERE WAS A 113000 GAIN MANUFACTURERS ADDED 34000 TO THEIR PAYROLLS A MEAGER SUM BUT A COMEBACK FROM LAST SUMMER'S HUGE LOSSES IN ADDITION THE AVERAGE WORKWEEK IN MANUFACTURING ROSE TWOTENTHS OF AN HOUR IN JANUARY TO 414 HOURS THE HIGHEST LEVEL IN MORE THAN 25 YEARS FACTORY OVERTIME ALSO EDGED UPWARD MANUFACTURING WORKWEEK AND OVERTIME HOURS ARE UNBELIEVABLY HIGH SUGGESTING HIRING IN THIS SECTOR WILL CONTINUE TO GROW SAID AUDREY FREEDMAN PRESIDENT OF THE MANPOWER PLUS EMPLOYMENT CONSULTING FIRM THE WHOLESALE AND RETAIL TRADE INDUSTRIES AND TRANSPORTATION SECTOR ALSO ADDED JOBS LAST MONTH CONSTRUCTION HASN'T BEGUN TO REBOUND YET THE INDUSTRY LOST 37000 JOBS IN JANUARY A REAL BRIGHT SPOT IN THE EMPLOYMENT REPORT WAS THAT THE NUMBER OF PEOPLE WORKING PART TIME BECAUSE THEY COULDN'T FIND FULLTIME WORK DROPPED 240000 IN JANUARY THAT FIGURE JUMPS AROUND A LOT ON A MONTHTOMONTH BASIS BUT WILLIAM BARRON DEPUTY COMMISSIONER OF LABOR STATISTICS SAID THE DECLINE WAS WORTH NOTING BECAUSE IT PUSHED THE FIGURE DOWN TO ITS LOWEST LEVEL IN MORE THAN A YEAR THE FED IN ITS REPORT ON DECEMBER CREDIT SAID CONSUMERS TOOK OUT MORE LOANS FOR AUTOMOBILES AND MADE MORE CREDITCARD PURCHASES IN AN APPARENT BUYING SPREE THAT HELPED GIVE RETAIL SALES A BIG LIFT DURING THE MONTH ANALYSTS SAID SUCH AN INCREASE IN BORROWING PROBABLY CAN'T BE SUSTAINED UNLESS THERE IS MORE JOB GROWTH CONSUMERS HAVE BEEN WORKING HARD TO LOWER THE DEBTS THEY ACCUMULATED IN THE 1980S FIGURES IN BOTH REPORTS HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE EXCERPTS FROM THE LABOR DEPARTMENT'S EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR DECEMBER IN BILLIONS AND PERCENTAGE CHANGES FROM NOVEMBER AT AN ANNUAL RATE 9302080147 930208 SMITH HINTS THAT GM WILL POST PROFIT FOR 4TH QUARTER BEFORE SPECIAL CHARGES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GENERAL MOTORS CORP PRESIDENT JOHN F SMITH JR SAID THE AUTO MAKER HAD A VERY STRONG FOURTH QUARTER AND HINTED THAT THE COMPANY'S NORTH AMERICAN OPERATIONS WERE PROFITABLE DURING THE PERIOD DURING A CHICAGO AUTO SHOW PRESS LUNCHEON FRIDAY MR SMITH SAID GM'S NORTH AMERICAN OPERATIONS WERE IN THE BLACK FOR OCTOBER ADDING THAT THE TRENDS WE SAW IN OCTOBER CONTINUED CASH FLOW WHICH HAD BEEN NEGATIVE DURING MUCH OF 1992 IS LOOKING REALLY STRONG MR SMITH SAID THE COMMENTS MARKED THE CLOSEST THAT MR SMITH HAS COME TO CONFIRMING THAT GM HAD A PROFIT IN THE FOURTH QUARTER BEFORE SPECIAL CHARGES GM IS EXPECTED TO DISCLOSE ITS YEAREND RESULTS THURSDAY GM HAD A LOSS OF 247 BILLION INCLUDING SPECIAL CHARGES IN THE 1991 FOURTH QUARTER FOR ALL OF 1992 GM'S RESULTS WILL STILL BE PRINTED WITH RED INK THE COMPANY SAID THIS MONTH THAT IT WILL TAKE A 208 BILLION CHARGE AGAINST EQUITY TO REFLECT THE FUTURE COSTS OF MEDICAL BENEFITS FOR RETIREES THAT CHARGE WILL WIPE OUT ABOUT THREEFOURTHS OF GM'S TOTAL NET WORTH GM ALSO HAS TAKEN MORE THAN 14 BILLION IN RESTRUCTURING CHARGES RELATED TO ITS HUGHES AIRCRAFT CO AND NATIONAL CAR RENTAL SYSTEMS INC UNITS STILL GM'S STRUGGLING DOMESTIC VEHICLE OPERATIONS APPEAR TO BE SHOWING SURPRISINGLY FAST IMPROVEMENT AFTER A SERIES OF COSTCUTTING REMEDIES THAT MR SMITH INITIATED LAST YEAR AND KICKED INTO HIGHER GEAR WHEN HE WAS NAMED CHIEF EXECUTIVE OFFICER ON NOV 2 MR SMITH SUCCEEDED ROBERT C STEMPEL WHO RESIGNED UNDER PRESSURE FROM GM'S OUTSIDE DIRECTORS WHO WANTED FASTER ACTION TO STANCH GM'S FINANCIAL BLEEDING MR SMITH'S PURCHASING CHIEF GROUP VICE PRESIDENT J IGNACIO LOPEZ DE ARRIORTUA SEEMS TO BE MAKING GAINS IN HIS CRUSADE TO SLASH GM'S COSTS FOR PARTS AND MATERIALS MR LOPEZ HAS INDICATED THAT HE EXPECTS TO CUT GM'S PARTS BILL BY 4 BILLION IN 1993 GM HAS CUT BY A THIRD THE NUMBER OF CARS IT SELLS TO DAILY RENTAL FLEETS UNDER FORMER PRESIDENT LLOYD E REUSS GM'S NORTH AMERICAN OPERATIONS INCREASINGLY RELIED ON BULK SALES TO RENTAL FLEETS TO BOLSTER MARKET SHARE AND KEEP FACTORIES RUNNING BUT THESE SALES TURNED INTO MAJOR MONEY LOSERS GM LOST MONEY ON THE INITIAL SALES AND AGAIN WHEN THE CARS WERE RESOLD AT AUCTIONS GM EVEN LOST MONEY RENTING THE CARS THROUGH ITS RENTAL CAR AFFILIATE NATIONAL CAR RENTAL SYSTEMS GM NOW PLANS TO TAKE A 744 MILLION CHARGE TO WRITE DOWN THE LOSSES AT NATIONAL BY SLASHING SALES TO RENTAL FLEETS MR SMITH HAS STANCHED A CASH DRAIN ESTIMATED AT SOME 1 BILLION A YEAR ALSO CONTRIBUTING TO THE IMPROVED PERFORMANCE ARE PROFITS FROM GM'S AUTOMOTIVE COMPONENTS GROUP WHICH LOST MONEY IN 1991 AND A SHARPLY NARROWER LOSS AT THE SATURN CORP SMALL CAR SUBSIDIARY WHICH BOOSTED PRODUCTION AND PRICES IN 1992 IN A PUSH TO BECOME PROFITABLE THIS YEAR MR SMITH HAS VOWED THAT GM'S DOMESTIC OPERATIONS WILL BREAK EVEN IN 1993 BEFORE INTEREST AND TAXES BUT HE ACKNOWLEDGED THAT GM HAS MUCH MORE TO DO TO ACHIEVE HIS GOAL OF BEING PROFITABLE THROUGHOUT THE BUSINESS CYCLE MR SMITH WILL TAKE A STEP TOWARD TACKLING ONE OF THE BIGGEST ISSUES THIS WEEK WHEN HE AND HIS STAFF MEET WITH UNITED AUTO WORKERS UNION LEADERS AND LAY OUT GM'S FINANCIAL SITUATION A MAJOR PART OF THAT PRESENTATION WILL BE A DISCUSSION OF THE ENORMOUS MEDICAL BENEFITS LIABILITY THAT OVER TIME WILL TRANSLATE INTO AN INCREASING DRAIN ON GM'S CASH FLOW 9302080146 930208 TECHNOLOGY & MEDICINE OFFICIAL'S RULING BACKS INSURANCE FOR AIDS PATIENTS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A DECISION THAT COULD HELP ENSURE HEALTH INSURANCE FOR AIDS PATIENTS AN EQUAL EMPLOYMENT OPPORTUNITY COMMISSION OFFICIAL RULED THAT A UNION WRONGLY DENIED SUCH BENEFITS TO A MAN WITH THE AIDS VIRUS WHILE THE RULING CAN STILL BE APPEALED TO THE FULL COMMISSION AS WELL AS TO THE COURTS THE DECISION BY SPENCER LEWIS JR THE EEOC'S NEW YORK DISTRICT DIRECTOR GIVES A BOOST TO PEOPLE WITH DISABLING ILLNESSES BY BLOCKING REDUCTIONS IN THEIR BENEFITS THOSE SAME INDIVIDUALS SUFFERED A SETBACK IN NOVEMBER WHEN THE SUPREME COURT REFUSED TO REVIEW AN APPEALS COURT DECISION THAT SAID SELFINSURED COMPANIES AREN'T BARRED BY FEDERAL EMPLOYEEBENEFITS LAWS FROM CUTTING HEALTH COVERAGE FOR WORKERS WITH AIDS IN THAT CASE A HOUSTON MAN JOHN MCGANN HAD HIS COVERAGE LIMITED TO 5000 BY HIS EMPLOYER H&H MUSIC CO THE CAP WAS BACKED BY A FEDERAL APPEALS COURT IN NEW ORLEANS UNDER THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT SINCE THEN LAWYERS HAVE BEEN SCRAMBLING TO FIND WAYS TO KEEP THE TERMINALLY ILL INSURED THEY APPEAR TO HAVE FOUND RELIEF IN THE AMERICANS WITH DISABILITIES ACT PUT INTO PLACE A YEAR AGO IN THE CASE DECIDED BY EEOC'S MR LEWIS THE MASON TENDERS DISTRICT COUNCIL OF NEW YORK IN JULY 1991 REVAMPED ITS BENEFITS PLAN TO EXCLUDE BENEFITS FOR TREATMENTS OF AIDS OR THE HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS THAT ELIMINATED VIRTUALLY ALL HEALTH BENEFITS FOR TERRENCE DONAGHEY JR A 34YEAROLD QUEENS NY WORKER WITH HIV MR DONAGHEY TOLD THE EEOC IN HIS COMPLAINT IN NOVEMBER THAT HE HAD BEEN WITHOUT MEDICAL ATTENTION SINCE JUNE OF 1992 AND THAT AS A RESULT OF THE DISEASE HAD LOST 24 POUNDS EXPERIENCED NAUSEA AND SLEEPLESSNESS AND HAD TROUBLE STANDING FOR EXTENDED PERIODS BECAUSE OF WEAKNESS SIDING WITH MR DONAGHEY THE EEOC'S MR LEWIS TOLD THE UNION THAT ITS INSURANCE PLAN APPEARS ON ITS FACE TO VIOLATE THE DISABILITIES ACT THE COMMISSION HAS DETERMINED THAT THE UNION HAS NO VIABLE DEFENSE TO THE CHARGE OF DISCRIMINATION MR LEWIS WROTE HE ALSO NOTED THAT THE UNION HAD FAILED TO ANSWER QUESTIONS ABOUT ITS MOVE TO SCALE BACK BENEFITS NOW THE UNION IS BEING ASKED TO SETTLE THE DISPUTE WITH THE EEOC THOUGH NEITHER THE UNION NOR THE AGENCY WOULD DISCUSS THE CASE IT IS LIKELY THE EEOC WILL SEEK TO REINSTATE AIDS OR HIV PATIENTS INTO THE UNION'S INSURANCE POLICY A LAWYER FOR MR DONAGHEY CARY LACHEEN OF NEW YORK LAWYERS FOR THE PUBLIC INTEREST INC SAID THE UNION HAS MADE NO OVERTURES TO HER CLIENT TO SETTLE THE CASE MR DONAGHEY WANTS THE POLICY TO BE CHANGED FOR HIMSELF AND FOR OTHERS WHO MAY BE AFFECTED SHE SAID HE ALSO WANTS TO BE COMPENSATED FOR THE LOSS THAT HE'S EXPERIENCED THE UNION'S LAWYER ROGER LEVIN DIDN'T RETURN CALLS SEEKING COMMENT 9302080145 930208 BEVERLY ENTERPRISES VIOLATED LABOR LAWS US LABOR BOARD SAYS WASHINGTON THE NATIONAL LABOR RELATIONS BOARD FOUND BEVERLY ENTERPRISES INC GUILTY OF 100 LABORLAW VIOLATIONS AGAINST EMPLOYEES ENGAGED IN UNION ORGANIZING DRIVES THE ACTION UPHELD A 1991 DECISION BY AN NLRBAPPOINTED JUDGE WHO ISSUED AN UNUSUAL CEASEANDDESIST ORDER AGAINST THE NATION'S LARGEST OPERATOR OF PRIVATE NURSING HOMES THE ALLEGED VIOLATIONS WERE SAID TO HAVE OCCURRED IN 30 NURSING HOMES IN 12 STATES AMONG OTHER THINGS BEVERLY WAS FOUND GUILTY OF FAILING TO BARGAIN IN GOOD FAITH ASSAULTING A UNION REPRESENTATIVE PROHIBITING DISTRIBUTION OF UNION LEAFLETS AND THREATENING TO HARASS AN EMPLOYEE IF SHE DIDN'T TESTIFY ON BEVERLY'S BEHALF AT AN NLRB PROCEEDING SERVICE EMPLOYEES INTERNATIONAL UNION PRESIDENT JOHN SWEENEY HAILED THE RULING WE'RE GRATIFIED TO FIND EVEN AFTER ALL THESE YEARS THAT CORPORATE CRIMINALS CANNOT WILLFULLY VIOLATE LAWS DESIGNED TO PROTECT WORKERS AND GUARANTEE THEM THE RIGHT TO JOIN UNIONS IF THEY SO CHOOSE MICHAEL FLAHERTY A SPOKESMAN FOR BEVERLY SAID WE BELIEVE THE DECISION IS IN ERROR HE ARGUED THAT THE COMPANY IS IN FULL COMPLIANCE WITH LABOR LAWS ACCORDING TO MR FLAHERTY 15 AND 20 EMPLOYEES MAY BE REINSTATED FOR A COMPANY WITH 100000 EMPLOYEES THAT'S A MINUSCULE NUMBER HE SAID ANOTHER SET OF CASES INVOLVING BEVERLY IS PENDING AT THE NLRB BEVERLY ENTERPRISES INC IS APPEALING A RULING BY THE NATIONAL LABOR RELATIONS BOARD THAT IT VIOLATED FEDERAL LABOR LAW IN CONNECTION WITH A UNION ORGANIZING DRIVE A STATEMENT BY A COMPANY SPOKESMAN THAT 15 TO 20 EMPLOYEES MAY BE REINSTATED UNDER THE RULING AS REPORTED IN AN ARTICLE YESTERDAY WOULD APPLY ONLY IF THE APPEAL FAILED 9302080144 930208 IF IT CATCHES ON THEY COULD CALL THEIR NEXT PLACE TEAS AND FLEAS BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO NOW YOU CAN QUAFF LATTE WHILE YOU COIF LASSIE TWO LOCAL ENTREPRENEURS HOPING TO MAKE THE WORLD A BETTER PLACE FOR MAN AND BEAST RECENTLY OPENED POOCHIE'S SELFSERVICE PET WASH & ESPRESSO BAR IN A PEACHCOLORED SHOPPING CENTER HERE THE SHOP OFFERS HARRIED ANIMAL OWNERS THREE WAISTHIGH WASHTUBS AN AUTOMATED PET DRYER BIG ENOUGH FOR TWO ROTTWEILERS AND A SILVERPLATED ITALIAN ESPRESSO MACHINE OWNERS JOHN MULLINS AND MINOU SADEGHI SERVE A RANGE OF BEVERAGES AND DESSERTS AND DISTRIBUTE FRESH TOWELS AND ALOEVERA GROOMING SHAMPOO A DOITYOURSELF WASH AND DRY IS 550 CREME RINSE CONDITIONER AND PET COLOGNE COST EXTRA THERE'S EVEN A FREQUENTBATHER PROGRAM AFTER THE FIFTH WASH AND THE NINTH COFFEE ONE OF EACH COMES FREE THE COMBINED VENTURE WAS PERFECT FOR MR MULLINS WHO HAD WORKED AS A VETERINARY TECHNICIAN AND MS SADEGHI WHO HAD OWNED A PAIR OF COFFEEHOUSES IN CHICAGO THE ONLY PROBLEM WAS THE COUNTY HEALTH DEPARTMENT WHICH WAS NERVOUS ABOUT MIXING DACHSHUNDS AND DECAF WE PROBABLY WENT THROUGH ABOUT THREE SETS OF BLUEPRINTS MR MULLINS RECALLS IT'S A DIFFICULT CONCEPT TO LOGISTICALLY PUT TOGETHER IN THE END A PARTITION WITH A DOOR AND GLASS WINDOW WAS BUILT BETWEEN THE PETWASH AREA AND THE ESPRESSO BAR ANIMALS ENTER THE PET WASH THROUGH THE PETSUPPLY SHOP NEXT DOOR BONE APPETIT WHICH THE PARTNERS ALSO OWN WHILE PETS ARE IN THE DRYER OWNERS ARE ENCOURAGED TO WATCH THEM THROUGH THE WINDOW SIP COFFEE AND CHOOSE FROM A VARIETY OF TREATS SUCH AS CROISSANTS AND CROISSANTSHAPED DOG BISCUITS POOCHIE'S IS POPULAR WITH THE PERRIERANDTERRIER CROWD ALAN HOLT A STOCKBROKER BROUGHT ROSIE HIS GOLDEN RETRIEVER FOR A SHAMPOO THERE WASN'T DOG HAIR FLYING AROUND THE ESPRESSO BAR OR ANYTHING HE SAYS IT'S GREAT BECAUSE I DON'T HAVE TO BEND OVER TO BATHE HER AND I CAN HAVE A CAFE MOCHA WHICH IS ALSO HARD TO DO AT HOME EILEEN WOLFARD A NURSE CAME IN WITH JESSIE A SHEPHERD MIX I DIDN'T THINK IN TERMS OF HEALTH ISSUES SHE SAYS BUT I TOOK A LOOK AT THE PLACE FIRST OTHER POOCHIE'S CUSTOMERS HAVE INCLUDED DOZENS OF CATS THOUGH THEY ARE NOTORIOUSLY WATERSHY A WOLF PUP A POSSUM AND A POTBELLIED PIG WE'VE EVEN HAD REQUESTS FROM PEOPLE WHO WANTED TO WASH THEIR CHILDREN MS SADEGHI SAYS WE'LL HAVE TO THINK ABOUT THAT ONE 9302080143 930208 ENTERPRISE MOST SMALL BUSINESSES APPEAR PREPARED TO COPE WITH NEW FAMILYLEAVE RULES BY WALL STREET JOURNAL REPORTERS TIMOTHY L O'BRIEN AND UDAYAN GUPTA IN NEW YORK AND BARBARA MARSH IN CHICAGO MOST SMALL BUSINESSES SAY THEY ARE READY FOR THE FAMILYLEAVE REQUIREMENTS SIGNED INTO LAW BY PRESIDENT CLINTON FRIDAY SOME WORRY ABOUT POTENTIAL ABUSES BY WORKERS AND SAY THEY LACK THE RESOURCES OF BIG CORPORATIONS TO ABSORB THE COST AND DISLOCATION OF WORKER LEAVES BUT MOST THINK THEY CAN HANDLE THE PROBLEMS AND INDEED MANY HAVE ALREADY DONE SO INDEPENDENTLY OR IN COMPLIANCE WITH STATE LAWS THESE SMALLBUSINESS OWNERS SAY THEY HAVE MANAGED TO FILL THE VACANCIES LEFT BY EMPLOYEES ON LEAVE BY TRANSFERRING EXISTING PERSONNEL HIRING TEMPORARY WORKERS OR SIMPLY WORKING OUT JOBSHARING ARRANGEMENTS WESTERN WORLD INSURANCE GROUP INC A RAMSEY NJ INSURER WITH 148 EMPLOYEES IS A CASE IN POINT LIKE MOST STATES NEW JERSEY ALREADY HAS A FAMILYLEAVE LAW ON THE BOOKS AND COMPLIANCE WITH IT HAS HAD A VERY NOMINAL IMPACT ON THE COMPANY'S OPERATIONS SAYS ELIZABETH LEE VICE PRESIDENT OF PERSONNEL AND ADMINISTRATION MS LEE DOESN'T EXPECT THE FEDERAL LAW TO IMPOSE ANY NEW BURDENS AT WESTERN WORLD ABOUT SIX EMPLOYEES MOTHERS WHO WANTED TO TAKE CARE OF NEWBORN CHILDREN HAVE TAKEN FAMILY LEAVE ACCORDING TO MS LEE INSTEAD OF TAKING 12 WEEKS OF LEAVE AS NEW JERSEY LAW PERMITS MOST OF THEM HAVE USED THEIR LEAVE TIME INTERMITTENTLY BY WORKING TWO AND THREEDAY WEEKS THE COMPANY HAS HANDLED THE ABSENCES OF ITS EMPLOYEES THROUGH CROSSTRAINING AND MULTISKILLS TRAINING ONE EMPLOYEE AN ACCOUNTANT SPENT SEVERAL HOURS EACH WEEK TRAINING A COLLEAGUE IN THE MOST CRITICAL ASPECTS OF HER JOB THE REST OF HER WORK WAS HANDLED BY CLERICAL EMPLOYEES FOR EACH OF THE ABSENCES THE COMPANY FOUND OTHER EMPLOYEES TO TAKE OVER TASKS AND IT DIDN'T HAVE TO HIRE SUBSTITUTES THE LAW HAS BEEN A BENEFIT TO THE COMPANY MS LEE SAYS BECAUSE WE HAVE SEEN A 100 RETURN OF NEW MOTHERS TO THE WORK FORCE SINCE IT WENT INTO EFFECT IN NEW JERSEY THE NEW FEDERAL LAW REQUIRES COMPANIES WITH 50 OR MORE EMPLOYEES TO GRANT 12 WEEKS OF UNPAID LEAVE AFTER CHILDBIRTH OR ADOPTION IT ALSO MANDATES LEAVE TO CARE FOR A CHILD SPOUSE OR PARENT DURING A SERIOUS ILLNESS AS WELL AS TO DEAL WITH AN EMPLOYEE'S OWN MEDICAL PROBLEMS EMPLOYERS ARE ALSO REQUIRED TO CONTINUE HEALTHCARE COVERAGE DURING THE LEAVE AND TO GUARANTEE THE SAME OR A COMPARABLE POSITION WHEN THE EMPLOYEE RETURNS TO WORK EMPLOYERS CAN EXEMPT KEY EMPLOYEES DEFINED AS THOSE WHO ARE IN THE HIGHESTPAID 10 OF THEIR STAFF AND WHOSE DEPARTURE WOULD HURT THE COMPANY'S FINANCIAL POSITION FROM THE MANDATES THE IMPACT OF THE LAW WAS CONSIDERABLY SOFTENED BY THE EXEMPTION OF SOME OF ITS FIERCEST OPPONENTS COMPANIES WITH FEWER THAN 50 EMPLOYEES OR 95 OF ALL BUSINESSES THESE COMPANIES EMPLOY 27 OF THE NATION'S CIVILIAN WORK FORCE OR ABOUT 25 MILLION PEOPLE THE SMALL BUSINESS ADMINISTRATION SAYS MOREOVER THE LAW WON'T MAKE MUCH DIFFERENCE TO COMPANIES IN THE 32 STATES AND THE DISTRICT OF COLUMBIA THAT ACCORDING TO THE SENATE SUBCOMMITTEE ON CHILDREN AND FAMILY ALREADY HAVE SOME FORM OF FAMILYLEAVE LAW THERE HAS BEEN A FAIR AMOUNT OF EXPERIENCE WITH THE CONCEPT OF FAMILY LEAVE SAYS JEFFREY ENGLANDER A PARTNER IN THE NEW YORK LAW FIRM MORRISON COHEN SINGER WEINSTEIN IF YOU PLAN PROPERLY IT SHOULDN'T PRESENT ANY PROBLEMS ELSEWHERE TOO COMPANIES HAVE FAMILYLEAVE POLICIES IN PLACE IN A JANUARY SURVEY OF 524 COMPANIES BY HEWITT ASSOCIATES A CHICAGO CONSULTING FIRM SEVEN OF 10 RESPONDENTS SAID THEY ALREADY OFFERED UNPAID LEAVE TO EMPLOYEES FOR CHILD BIRTH ADOPTION OR FAMILY ILLNESS IN THE SAME SURVEY SEVEN OF 10 ALSO SAID THE COSTS OF SUCH A POLICY WERE INSIGNIFICANT FAMILIES AND WORK INSTITUTE A NEW YORK CITY NONPROFIT GROUP SAYS ITS RESEARCH HAS SHOWN THAT MOST COMPANIES GET OTHER WORKERS TO FILL IN WHEN AN EMPLOYEE GOES ON LEAVE IN THE INSTITUTE'S 1990 SURVEY OF 1658 COMPANIES ABOUT 67 OF THE RESPONDENTS SAID THEY REASSIGNED THE WORK OF THE ABSENT EMPLOYEE TO OTHER WORKERS WHILE 23 HIRED TEMPORARY WORKERS TO FILL THE VACANCY ONLY 4 SAID THEY HIRED A PERMANENT EMPLOYEE TO FILL THE SLOT SOMETIMES FAMILYLEAVE REQUIREMENTS DO CREATE PROBLEMS OF COURSE IN MINNESOTA WHICH HAS MANDATED SIX WEEKS OF FAMILY LEAVE SINCE 1987 SOME EMPLOYERS COMPLAIN ABOUT THE GUIDELINES RON BOERBOOM AN OWNER OF MERIT PRINTING INC A MINNEAPOLIS PRINTER SAYS EXTENDED LEAVE CAN CREATE QUITE A HARDSHIP WHEN HIS ART DIRECTOR TOOK SIX WEEKS OFF LAST YEAR AFTER SHE GAVE BIRTH MR BOERBOOM HIRED A TEMPORARY REPLACEMENT BUT THE NEWCOMER WAS MUCH LESS EFFICIENT THAN THE WOMAN ON LEAVE HE SAYS WHAT'S MORE TWO FULLTIME STAFFERS HAD TO WORK FOUR TO FIVE HOURS MORE A DAY TO PICK UP THE SLACK THOUGH THE TWO INITIALLY APPRECIATED THE OVERTIME PAY TOWARD THE END OF THE SIXWEEK PERIOD THEY WERE GETTING UNCOMFORTABLE HE SAYS MR BOERBOM NOTES HOWEVER THAT A LOWERPAID TYPESETTER TOOK OFF ONLY 2 1/2 WEEKS FOLLOWING HER CHILD'S BIRTH BECAUSE SHE COULDN'T AFFORD A LONGER STAY AT HOME HERS WASN'T AN ISOLATED CASE IN THE 1990 SURVEY BY THE FAMILIES AND WORK INSTITUTE THE AVERAGE DURATION OF LEAVE TAKEN AFTER THE BIRTH OF A CHILD WAS 12 WEEKS BUT THE STUDY ALSO SHOWED THAT LOWINCOME WORKERS DEFINED AS THOSE EARNING 15000 A YEAR OR LESS RETURNED TO WORK IN NINE WEEKS ON AVERAGE MOST SAID THEY COULDN'T AFFORD TO STAY OUT LONGER SAYS ELLEN GALINSKY THE INSTITUTE'S COPRESIDENT EVEN SMALL COMPANIES THAT FAVOR FAMILY LEAVE WORRY ABOUT THE POTENTIAL FOR ABUSE ANDREW BUTLER PRESIDENT OF WEDGE INNOVATIONS INC A SAN JOSE MANUFACTURER OF DIGITAL NAVIGATION INSTRUMENTS AND AN EMPLOYER OF 65 PEOPLE SUPPORTS THE CONCEPT BUT WORRIES ABOUT THE POTENTIAL FOR ABUSE ONE OF THE SALES PITCHES WE USE AS A SMALL COMPANY IS THAT THERE'S A FAMILY ATMOSPHERE AND IT'S TRUE WE ALL PULL TOGETHER SAYS MR BUTLER BUT THERE'S ALWAYS THAT BAD SEED JACK ROESER PRESIDENT OF OTTO ENGINEERING INC A CARPENTERSVILLE ILL MAKER OF ELECTROMECHANICAL DEVICES EMPLOYING 160 PEOPLE SAYS HIS COMPANY ALREADY OFFERS GOOD EMPLOYEES MOST OF THE BENEFITS THE LEGISLATION ENTAILS NOW THAT SUCH BENEFITS WILL BE MANDATORY HOWEVER HE WORRIES THAT HE'LL BE STUCK WITH EMPLOYEES WHO WORK THE SYSTEM MR ROESER EXPECTS FOR INSTANCE THAT A WORKER MIGHT GO ON LEAVE AS A WAY TO KEEP COLLECTING HEALTH BENEFITS THEN QUIT THOUGH THE LEGISLATION IN THAT EVENT REQUIRES THE WORKER TO REFUND THE EMPLOYER'S INSURANCE PREMIUM MR ROESER SAYS LEGAL COSTS WOULD RUN TOO HIGH FOR HIM TO PURSUE A 500 TO 1000 CLAIM OTHER SMALL BUSINESS OWNERS SAY THEY FIND THE NEW LAW INTRUSIVE I THINK WE'RE ALL A LITTLE DISAPPOINTED WITH GOVERNMENT DICTATING PERSONNEL POLICY SAYS JIM BEARDSLEY CATALOG DIRECTOR FOR CABELA'S INC A SIDNEY NEB OUTDOOREQUIPMENT MAILORDER CONCERN WITH ABOUT 1100 WORKERS YET MR BEARDSLEY CONCEDES THAT THE LAW WON'T CAUSE MANY MANAGERIAL HEADACHES THE IMPACT TO OUR BUSINESS WILL BE MINIMAL HE SAYS INDEED SOME THINK FAMILY LEAVE WILL HELP EMPLOYEE MORALE AS FAR AS WE'RE CONCERNED IT'S NOT A PROBLEM SAYS BILL PARSONS PRESIDENT OF PALMER JOHNSON INC THE STURGEON BAY WIS BOAT BUILDER ALREADY GRANTS FAMILY LEAVE TO ITS 350 EMPLOYEES IN AN ERA WHERE COMPANIES ARE COMPETING FOR EMPLOYEES THE ENLIGHTENED COMPANIES HAVE ALREADY THOUGHT ABOUT HOW TO HANDLE AND TREAT EMPLOYEES WITH RESPECT HE ADDS HERE ARE PROVISIONS OF THE LAW SIGNED BY PRESIDENT CLINTON REQUIRING LARGER EMPLOYERS TO GIVE WORKERS UNPAID LEAVE FOR A FAMILY OR MEDICAL EMERGENCY EMPLOYERS THAT HAVE 50 OR MORE EMPLOYEES WITHIN A 75MILE RADIUS WILL BE COVERED BY THE LAW WHICH APPLIES TO NONPROFIT AND GOVERNMENTAL ORGANIZATIONS AS WELL AS BUSINESSES EMPLOYERS WILL BE REQUIRED TO OFFER WORKERS AS MUCH AS 12 WEEKS OF UNPAID LEAVE AFTER CHILDBIRTH OR ADOPTION TO CARE FOR A SERIOUSLY ILL CHILD SPOUSE OR PARENT OR IN CASE OF AN EMPLOYEE'S OWN SERIOUS ILLNESS EMPLOYERS WILL HAVE TO CONTINUE HEALTHCARE COVERAGE DURING THE LEAVE EMPLOYERS WILL HAVE TO GUARANTEE EMPLOYEES WILL RETURN TO EITHER THE SAME JOB OR A COMPARABLE POSITION EMPLOYERS CAN EXEMPT KEY EMPLOYEES DEFINED AS THEIR HIGHESTPAID 10 OF THE WORK FORCE AND WHOSE LEAVE WOULD CAUSE ECONOMIC HARM TO THE EMPLOYER EMPLOYERS CAN EXEMPT EMPLOYEES WHO HAVEN'T WORKED AT LEAST ONE YEAR AND WHO HAVEN'T WORKED AT LEAST 1250 HOURS OR 25 HOURS A WEEK IN THE PREVIOUS 12 MONTHS A DOCTOR'S CERTIFICATION MUST BE OBTAINED TO VERIFY A SERIOUS ILLNESS EMPLOYER MAY REQUIRE A SECOND MEDICAL OPINION A QUALIFYING CONDITIION IS DEFINED AS THE NEED FOR CONTINUING CARE AND THE INABILITY TO PERFORM ONE'S JOB OR THE NEED TO CARE FOR AN ILL FAMILY MEMBER EMPLOYERS CAN SUBSTITUTE AN EMPLOYEE'S ACCRUED PAID LEAVE FOR ANY PART OF THE 12WEEK PERIOD OF FAMILY LEAVE EMPLOYEES WILL BE REQUIRED TO PROVIDE 30 DAYS' NOTICE FOR FORSEEABLE LEAVES FOR BIRTH ADOPTION OR PLANNED MEDICAL TREATMENT EMPLOYERS WILL BE PERMITTED TO REQUIRE AN EMPLOYEE TAKING INTERMITTENT LEAVE FOR PLANNED MEDICAL TREATMENTS TO TRANSFER TEMPORARILY TO AN EQUIVALENT ALTERNATIVE POSITION MEDICAL CERTIFICATION FOR SUCH LEAVE MUST INCLUDE THE EXPECTED DATES FOR MEDICAL TREATMENTS AND THE PLANNED DURATION OF THE TREATMENTS 9302080142 930208 BUSINESS BRIEF STAAR SURGICAL CO FIRM SETS LEGAL SETTLEMENT WITH ITS FORMER PRESIDENT STAAR SURGICAL CO SAID IT REACHED A LEGAL SETTLEMENT WITH ITS FORMER PRESIDENT AND FOUNDER THOMAS R WAGGONER WHO WAS OUSTED BY THE BOARD IN 1989 AFTER HE TRIED TO FIRE ALL THE DIRECTORS TERMS OF THE SETTLEMENT WEREN'T DISCLOSED THOUGH STAAR SAID IN MONROVIA CALIF THAT IT WAS AMICABLE THE DISPUTE AROSE WHEN THE DIRECTORS DISAGREED WITH MR WAGGONER OVER STAAR'S SIGNING OF A LICENSING AND SALES AGREEMENT WITH ANOTHER COMPANY A TRANSACTION THEY ALLEGED WAS MORE FINANCIALLY ADVANTAGEOUS PERSONALLY TO MR WAGGONER THAN A MERGER WITH A THIRD COMPANY THAT THE BOARD HAD ALREADY APPROVED THE COMPANY AND THE FOUR DIRECTORS SUED MR WAGGONER IN 1989 SEEKING 60 MILLION IN DAMAGES MR WAGGONER COUNTERSUED ALLEGING FRAUD AND BREACH OF CONTRACT AND SEEKING 10 MILLION IN DAMAGES STAAR MAKES DISPOSAL SURGICAL KITS FOR USE IN CATARACT SURGERY 9302080141 930208 ASPIN IN MUNICH URGES WESTERN ALLIES TO EXERT INFLUENCE' ON CRISIS IN BALKANS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH DEFENSE SECRETARY LES ASPIN MAKING THE FIRST OVERSEAS TRIP BY A MEMBER OF THE CLINTON ADMINISTRATION CALLED ON THE WESTERN ALLIANCE TO BRING THE FULL FORCE OF OUR INFLUENCE TO BEAR ON THE BALKANS CRISIS SECRETARY ASPIN ALSO SAID THE ADMINISTRATION IS LIKELY TO UNVEIL ITS POSITION ON THE BALKANS SOMETIME THIS WEEK MR ASPIN SPENT THE WEEKEND HERE PRIVATELY DISCUSSING THE ADMINISTRATION'S EVOLVING VIEWS ON THE BALKANS WITH GERMAN CHANCELLOR HELMUT KOHL BRITISH FOREIGN MINISTER DOUGLAS HURD AND THE DEFENSE MINISTERS OF GERMANY FRANCE ITALY CANADA BELGIUM AND THE NETHERLANDS THE OFFICIALS WERE GATHERED FOR AN ANNUAL CONFERENCE ON WESTERN SECURITY POLICY SPEAKING TO REPORTERS AS HE FLEW HOME YESTERDAY MORNING MR ASPIN SAID THE US PROPOSALS DREW A UNIFORMLY POSITIVE RESPONSE HOWEVER HE DECLINED TO BE SPECIFIC AND IT IS STILL UNCLEAR WHAT STEPS THE US MIGHT TAKE THIS WEEK ESPECIALLY CONSIDERING THE US MILITARY'S CONTINUED RESISTANCE TO BECOMING INVOLVED IN THE BALKANS JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL AND OTHER TOP US MILITARY OFFICERS FEAR THAT THE ADMINISTRATION BY CRITICIZING THE BOSNIA PEACE PLAN DEVISED BY MEDIATORS CYRUS VANCE OF THE US AND DAVID OWEN OF BRITAIN HAS MANEUVERED ITSELF BETWEEN A ROCK AND A HARD PLACE ACCORDING TO AN OFFICER FAMILIAR WITH THEIR THINKING GEN POWELL IS SAID TO AGREE WITH THE ADMINISTRATION'S VIEW THAT THE VANCEOWEN PLAN IS SO DEEPLY FLAWED THAT IT PROBABLY WON'T WORK YET BY DELAYING THAT PLAN'S IMPLEMENTATION SENIOR OFFICERS FEAR THE CLINTON ADMINISTRATION HAS ASSUMED THE BURDEN OF TAKING THE INITATIVE A POSITION THAT COULD LEAD TO US MILITARY INVOLVEMENT IN HIS COMMENTS TO REPORTERS MR ASPIN SAID THE DIFFERENCES BETWEEN THE JOINT CHIEFS OF STAFF AND THE NEW ADMINISTRATION OVER BOSNIA AND OTHER ISSUES SUCH AS GAYS IN THE MILITARY HAVE BEEN EXAGGERATED I THINK WE'RE WORKING TOGETHER WELL HE SAID I THINK THAT WE DO WANT THE MILITARY TO GIVE ITS HONEST OPINIONS ON THESE ISSUES ON THE OTHER HAND WHEN THE PRESIDENT MAKES A DECISION WE EXPECT THAT DECISION TO BE CARRIED OUT THE AMERICAN MILITARY'S CAUTIOUS VIEWS ABOUT BOSNIAN INTERVENTION CAME UNDER ATTACK DURING THE CONFERENCE ECHOING MR ASPIN'S OWN PAST CRITIQUE OF GEN POWELL'S OFTSTATED INSISTENCE ON ACTING ONLY WITH OVERWHELMING FORCE NATO SECRETARYGENERAL MANFRED WOERNER SAID THE WESTERN ALLIANCE NEEDS TO ESCAPE THE ALLORNOTHING' DILEMMA WE MUST NOT SHRINK FROM THE LEGITIMATE USE OF FORCE IF WE ARE TO REMAIN CREDIBLE HE ARGUED AT THE CONFERENCE YESTERDAY AND HE POINTEDLY NOTED HIS EXPERIENCE WITH NATO HAS BEEN THAT WITHOUT THE AMERICANS NOTHING HAPPENS IN HIS OWN SPEECH TO THE CONFERENCE MADE ON SATURDAY BEFORE HE MET WITH SECRETARY ASPIN CHANCELLOR KOHL TERMED THE VANCEOWEN PEACE PLAN REALISTIC AND CALLED FOR ITS SPEEDY IMPLEMENTATION THE LONGER THE CONFLICT CONTINUES THE MORE LIKELY IT IS TO SPREAD TO NEIGHBORING REGIONS HE WARNED MR ASPIN TRAVELED DIRECTLY TO MUNICH FROM A LENGTHY MEETING AT THE WHITE HOUSE FRIDAY AT WHICH HE SAID PRESIDENT CLINTON AND HIS ADVISERS DISCUSSED SEVERAL OPTIONS ON THE BALKANS THE PRESIDENT SPENT THE WEEKEND CONSIDERING THOSE OPTIONS AND PROBABLY WILL ANNOUNCE A DECISION THIS WEEK MR ASPIN SAID IMPRESSED BY MILITARY ADVISERS AND KEY EUROPEAN ALLIES WHO HAVE BEEN RELUCTANT TO USE FORCE IN THE BALKANS THE ADMINISTRATION HAS APPARENTLY DECIDED TO GET MORE CLOSELY INVOLVED IN THE NEGOTIATIONS POSSIBLY BY APPOINTING A SPECIAL US ENVOY TO FACILITATE THEM ANOTHER IDEA DISCUSSED LAST WEEK WAS HAVING THE US AND RUSSIA PLAY A BROKERING ROLE AS THEY DO IN THE MIDDLE EAST PEACE PROCESS RUSSIA IN RECENT WEEKS HAS HINTED THAT IT MIGHT VETO ANY STRONGER SANCTIONS AGAINST THE SERBS IN THE UN SECURITY COUNCIL WITHOUT GETTING INTO ANY OF THE PARTICULARS WE NEED THE RUSSIANS BIGTIME IN THIS THING MR ASPIN SAID THE CLOSEST MR ASPIN CAME TO TIPPING THE ADMINISTRATION'S HAND WAS IN A TOAST AT A STATE DINNER SATURDAY NIGHT IN WHICH HE CALLED ON THE WESTERN ALLIANCE TO USE ITS FULL INFLUENCE TO RESTORE PEACE IN THE FORMER YUGOSLAVIA THE CONFLICT CANNOT BE ALLOWED TO SPREAD EITHER HE CONTINUED NATO HAS ITS ROLE TO PLAY IN THE FORMER YUGOSLAVIA WE MUST SUMMON THE IMAGINATION AND COURAGE TO REDIRECT OUR ALLIANCE IN THIS DIRECTION 9302080140 930208 WHO'S NEWS WSMP INC WSMP INC CLAREMONT NC JAMES C RICHARDSON JR 43 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS RESTAURANT AND FOODSERVICE COMPANY MR RICHARDSON HAD BEEN EXECUTIVE VICE PRESIDENT AND SECRETARY AS PRESIDENT HE SUCCEEDS CECIL R HASH 52 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9302080139 930208 WHO'S NEWS BAUSCH & LOMB INC BAUSCH & LOMB INC ROCHESTER NY JAMES J WARD 55 YEARS OLD VICE PRESIDENT AND CONTROLLER WAS NAMED TO THE NEW POST OF VICE PRESIDENT AUDIT SERVICES AT THIS HEALTH CARE PRODUCTS AND OPTICS CONCERN HE WILL BE SUCCEEDED BY PETER STEPHENSON 53 FORMERLY VICE PRESIDENT AND CORPORATE TREASURER AT WARNERLAMBERT CO MORRIS PLAINS NJ 9302080138 930208 WHO'S NEWS COASTAL BANC SAVINGS ASSOCIATION COASTAL BANC SAVINGS ASSOCIATION HOUSTON PHILIP J BARBER 53 YEARS OLD WILL RETIRE AS PRESIDENT IN THE SECOND QUARTER HIS DUTIES WILL BE ASSUMED BY MANUEL J MEHOS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR BARBER WAS ELECTED VICE CHAIRMAN AND WILL REMAIN A DIRECTOR BUT WILL NO LONGER HAVE DAILY DUTIES UPON HIS RETIREMENT THE SAVINGS AND LOAN CONCERN SAID 9302080137 930208 TECHNOLOGY & MEDICINE INTEL CORP ASKS PC MAKERS TO DELAY PENTIUM SYSTEMS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP SEEKING TO AVOID EXPECTED SHORTAGES OF ITS NEXTGENERATION MICROPROCESSOR HAS QUIETLY ASKED PERSONALCOMPUTER MAKERS TO DELAY BY TWO MONTHS THEIR PLANS TO SELL SYSTEMS BASED ON THE NEW CHIP THE DELAY IS THE SECOND FOR INTEL'S NEW PENTIUM CHIP THE COMPANY'S IMPORTANT WEAPON IT ITS BATTLE TO KEEP ITS DOMINANT SHARE IN MICROPROCESSORS THE CHIPS THAT ACT AS THE BRAINS OF COMPUTERS INTEL INITIALLY SCHEDULED THE PENTIUM'S INTRODUCTION FOR THE FOURTH QUARTER OF 1992 BUT DELAYED IT CITING MARKETING REASONS AT THAT TIME THE SANTA CLARA CALIF COMPANY SAID THE CHIP WOULD BE OFFICIALLY INTRODUCED AT THE END OF MARCH AT WHICH TIME PENTIUMBASED COMPUTERS WOULD ALSO BEGIN SELLING INTEL STILL PLANS TO DISCUSS TECHNICAL DETAILS ABOUT THE CHIP AT THE END OF MARCH BUT WILL NOT ANNOUNCE PRICES AS IT HAD ORIGINALLY INTENDED LIMITED SHIPMENTS WILL BE MADE TO COMPUTER MANUFACTURERS BEGINNING AT THAT TIME AN INTEL SPOKESWOMAN SAID YESTERDAY THE SPOKESWOMAN COMMENTING ON A STORY IN THE SAN FRANCISCO CHRONICLE CONFIRMED THAT INTEL ASKED COMPUTER MAKERS TO DELAY PRODUCT INTRODUCTIONS UNTIL MAY INTEL HASN'T CHANGED ITS PRODUCTION SCHEDULE AND WILL MANUFACTURE AS MANY PENTIUM CHIPS AS IT ORIGINALLY PLANNED SHE SAID BUT DELAYING PC INTRODUCTIONS WILL ALLOW INTEL AND COMPUTER MANUFACTURERS TO BUILD UP INVENTORIES OF THE PENTIUM WHICH IS EXPECTED TO BE IN SHORT SUPPLY FOR SOME TIME HELPING PC MAKERS TO MEET INITIAL DEMAND HISTORICALLY COMPUTER MAKERS BEGIN SELLING A NEW GENERATION OF PCS AT THE SAME TIME INTEL INTRODUCES A NEWGENERATION CHIP THE CHANGE WAS MADE THIS TIME BECAUSE WE'VE BEEN DOING THIS FOR A WHILE SO EVERYONE'S GETTING SMARTER THE SPOKESWOMAN SAID THE SPOKESWOMAN DENIED SPECULATION THAT THE DELAY WAS TIED TO AN ATTEMPT BY THE COMPANY TO SQUEEZE AS MUCH PROFIT AS POSSIBLE OUT OF ITS HOTSELLING 486 CHIP ITS CURRENT FLAGSHIP PRODUCT WHICH RIVALS HAVEN'T CLONED IN LARGE VOLUMES YET SHE ADDED THAT THE CHIP ISN'T FACING ANY MANUFACTURING GLITCHES LAST MONTH SOME COMPUTER EXECUTIVES BEGAN TO SPECULATE THAT INTEL WAS HAVING DIFFICULTY WORKING OUT GLITCHES IN THE NEW CHIP WHICH HAS HIGHLY COMPLEX CIRCUITS THAT ARE ESPECIALLY SUITED FOR PROCESSING AUDIO AND VIDEO SIGNALS BUT INTEL HAS STAUNCHLY DENIED ANY SUCH PROBLEMS SAYING THAT COMPUTER MANUFACTURERS HAD PROTOTYPES OF THE CHIP FOR SEVERAL MONTHS AND WERE ALREADY BUILDING SYSTEMS AROUND IT 9302080136 930208 NESCAFE COMMERCIAL FOR INSTANT COFFEE INSPIRES UK NOVEL ELEGANT HEROINE AND HER HUNK PURSUE LOVE OVER BREW FILM RIGHTS MIGHT ENSUE LONDON AP IF IT SELLS COFFEE MAYBE IT WILL SELL BOOKS THAT'S THE IDEA BEHIND LOVE OVER GOLD A NOVEL BASED ON A TV COMMERCIAL FOR INSTANT COFFEE JUST IN TIME FOR VALENTINE'S DAY THE BOOK TAKES UP THE STORY OF AN ELEGANT WASPISH WOMAN AND THE CHEERFUL HUNK BOTH LIKE THEIR COFFEE QUICK AND HOT THEIR ROMANCE COY AND SIMMERING IN BRITAIN WHERE THE PRODUCT IS CALLED NESCAFE GOLD BLEND THE FLIRTATION IS NOW IN ITS FIFTH SMASHHIT YEAR IN THE US THE COUPLE'S COFFEE IS CALLED TASTER'S CHOICE THE STORY SEEMS TO RANK JUST BELOW CHARLES AND DIANA IN PUBLIC INTEREST WHEN THE HUNK SAID I LOVE YOU IN A COMMERCIAL SHOWN IN DECEMBER THE NEWS MADE PAGE ONE OF THE SUN BRITAIN'S BIGGESTSELLING TABLOID THE UNTOLD STORY OF TV'S GREATEST ROMANCE AS THE BOOK COVER SAYS RETAILS FOR 575 AND CORGI BOOKS PRINTED 150000 TO START IT'S ALL DONE IN EXTREMELY GOOD TASTE SAID AUTHOR SUSAN MOODY SPEAKING AT THE RITZ HOTEL THERE'S NOTHING PARTICULARLY EXPLICIT ABOUT IT WHAT IS EXPLICIT IS THE COMMERCIALISM NESTLE SA AND ITS ADVERTISING AGENCY MCCANNERICKSON AS OWNERS OF THE CHARACTERS ARE EAGER TO DISCUSS FILM RIGHTS THE BOOK ALSO INCLUDES AN ORDER BLANK FOR A VIDEO OF ALL THE COMMERCIALS MS MOODY WHO USED THE PEN NAME SUSANNAH JONES FOR THE BOOK HAS SUPPLIED BOTH CHARACTERS WITH MURKY PASTS AND BROKEN HEARTS WHEN THEY MEET IN LONDON THE HERO IS DRUNK ON PAGE 80 THE HEROINE RUNS OUT OF COFFEE AND KNOCKS AT HIS DOOR IT'S NOT TOO SOPHISTICATED FOR BRITONS WHO PREFER INSTANT 10TOONE OVER BREWED COFFEE FURTHERMORE SALES OF GOLD BLEND HAVE INCREASED 40 SINCE THE COMMERCIALS STARTED ACCORDING TO SUPER MARKETING MAGAZINE MS MOODY WHO ALSO WRITES THE PENNY WANAWAKE DETECTIVE BOOKS OFFERED NO EXCUSES FOR THE BOOK I JUST WRITE BECAUSE SOMEBODY PAYS ME FOR DOING WHAT I LIKE DOING BEST I'M NOT HERE WITH MESSAGES FOR MANKIND 9302080135 930208 CHARMING SHOPPES EXPECTS TO REPORT STRONG PROFIT RISE BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL BENSALEM PA CHARMING SHOPPES INC BENEFITING FROM BETTER MERCHANDISING IS COMFORTABLE WITH ESTIMATES IT WILL POST A 32 RISE IN FISCAL FOURTHQUARTER EARNINGS DAVID V WACHS CHAIRMAN AND CHIEF EXECUTIVE SAID THE APPAREL RETAILER ALSO IS COMFORTABLE WITH ANALYSTS' PROJECTIONS OF A 40 INCREASE IN NET INCOME FOR THE FULL YEAR ENDED JAN 30 HE SAID WALL STREET EXPECTS CHARMING SHOPPES TO REPORT THAT NET FOR THE QUARTER ROSE TO ABOUT 24 CENTS A SHARE OR A TOTAL OF ABOUT 26 MILLION FROM 18 CENTS A SHARE OR 197 MILLION A YEAR AGO YEAREARLIER PERSHARE AMOUNTS WERE RESTATED TO REFLECT A 2FOR1 STOCK SPLIT IN DECEMBER FOR THE YEAR ANALYSTS ARE ESTIMATING THE COMPANY WILL POST NET OF ABOUT 75 CENTS A SHARE OR A TOTAL OF 814 MILLION UP FROM RESTATED YEAREARLIER EARNINGS OF 55 CENTS A SHARE OR 583 MILLION LAST WEEK THE COMPANY REPORTED SALES FOR THE YEAR ROSE 16 TO 118 BILLION FROM 102 BILLION IN FISCAL 1992 FOR THE FOURTH QUARTER SALES ROSE 14 TO 3372 MILLION FROM 2956 MILLION SAMESTORE SALES ROSE 6 IN THE QUARTER AND 65 IN THE YEAR CHARMING SHOPPES OPERATES 1220 STORES UNDER THE NAME FASHION BUG AND FASHION BUG PLUS IN 42 STATES THE IMPROVEMENTS ARE THE RESULT OF BETTER APPAREL MERCHANDISING AND STEM FROM THE COMPANY'S FORMULA OF LOCATING ITS STORES IN LOWERCOST STRIP SHOPPING CENTERS THAT ARE VISITED FREQUENTLY BY THE LOWERMIDDLEINCOME WOMEN IT TARGETS AS ITS CUSTOMERS MR WACHS SAID THE OTHER PART OF THE COMPANY'S FORMULA HAS BEEN TO INCREASE DIRECT SOURCING OF ITS OWN APPAREL CHARMING SHOPPES' WORLDWIDE SOURCING ORGANIZATION IS RESPONSIBLE FOR DIRECTLY BUYING ABOUT 65 OF THE MERCHANDISE IT SELLS FROM MANUFACTURERS WHO MAKE IT TO CHARMING'S SPECIFICATIONS WE'VE TAKEN THE MIDDLEMAN OUT OF THE BUSINESS TO A GREAT EXTENT AND THIS MAKES US ABLE TO REDUCE PRICES AND OFFER BETTER QUALITY MR WACHS SAID THUS THE COMPANY IS ABLE TO REDUCE COSTS BY HAVING PRODUCTS MADE TO ITS SPECIFICATIONS AND OVERSEEING THE MANUFACTURING IT CAN MAINTAIN ITS CONTROL OVER QUALITY AND CONSISTENCY OF FIT OUR CONCEPT IS TO PROVIDE FASHIONABLE MERCHANDISE AT A GREAT VALUE MR WACHS SAID WE FEEL THAT'S WHERE PEOPLES' VALUE SYSTEMS ARE HITTING FOR THE 90'S THEY'RE MORE FOCUSED ON QUALITY MERCHANDISE AT THE RIGHT PRICE PROVIDING FASHIONABLE MERCHANDISE MADE UNDER ITS OWN LABELS AND CUSTOMER SERVICE ARE TWO WAYS THE COMPANY BELIEVES IT CAN DISTINGUISH ITSELF FROM MASSMERCHANDISE COMPETITORS CHARMING SHOPPES EXPECTS TO OPEN AT LEAST 150 STORES THIS YEAR FINANCED BY INTERNALLY GENERATED FUNDS THE COMPANY HAS ONLY ABOUT 30 MILLION OF LONGTERM DEBT WITH A DEBTTOEQUITY RATIO OF ABOUT 8 IT WOULD LIKE TO EXPAND ITS PRESENCE IN THE WEST AND SOUTHEAST AND TO OPEN STORES IN SUCH STATES AS TEXAS 9302080134 930208 NATIONAL STEEL PLANNING TO SELL SHARES TO PUBLIC BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL STEEL CORP PLANS TO RETURN TO PUBLIC OWNERSHIP AFTER A TURBULENT DECADE WITH AN INITAL PUBLIC OFFERING VALUED AT UP TO 178 MILLION NATIONAL STEEL THE NATION'S FOURTHLARGEST STEELMAKER HOPES THE OFFERING WILL TAKE ADVANTAGE OF THE RALLY IN STEEL COMPANY SHARES IN RECENT MONTHS ANALYSTS HOWEVER WERE LUKEWARM ABOUT THE COMPANY'S PROSPECTS THE IPO WILL EFFECTIVELY GIVE THE PUBLIC A 17 TO 20 VOTING STAKE IN NATIONAL STEEL WHILE CUTTING THE VOTING STAKE HELD BY DALLASBASED NATIONAL INTERGROUP INC NATIONAL STEEL'S FORMER OWNER TO ABOUT 11 FROM 30 JAPAN'S NKK CORP NATIONAL STEEL'S CURRENT OWNER WILL RETAIN ITS VOTING RIGHTS OF ABOUT 70 NATIONAL STEEL WHICH RECENTLY MOVED TO MISHAWAKA IND FROM PITTSBURGH WILL ISSUE 10 MILLION NEW SHARES AT AN EXPECTED PRICE OF 1350 TO 1550 AND GIVE ITS UNDERWRITERS LED BY JP MORGAN SECURITIES INC OVERALLOTMENT OPTIONS FOR AN ADDITIONAL 15 MILLION SHARES THE COMPANY WILL USE 68 MILLION OF THE ESTIMATED 135 MILLION IN PROCEEDS TO RETIRE 50 OF A SERIES OF PREFERRED STOCK HELD BY NATIONAL INTERGROUP TO OFFSET THE DILUTION OF NKK'S OWNERSHIP NATIONAL STEEL WILL GRANT NKK AND NATIONAL INTERGROUP TWO VOTES FOR EACH OF ITS SHARES RICHARD NEWSTED NATIONAL STEEL'S CHIEF FINANCIAL OFFICER POINTED OUT THAT THE COMPANY HAD TO REDEEM INTERGROUP'S PREFERRED SHARES BY 1995 THE OTHER HALF MUST BE REDEEMED IN 2000 HE ALSO SAID STRENGTH IN THE MARKET MADE THE IPO APPROPRIATE NATIONAL STEEL LED MOST INTEGRATED STEELMAKERS IN 1992 WITH A SMALL OPERATING PROFIT AND A RELATIVELY MODEST NET LOSS OF 484 MILLION BUT NATIONAL STEEL MAY HAVE TROUBLES OVER THE LONG TERM SOME OF ITS PENSIONS ARE UNDERFUNDED AND THE COMPANY FACES 650 MILLION IN RETIREE HEALTHCARE LIABILITIES BECAUSE OF A NEW ACCOUNTING STANDARD WHICH IT WILL BEGIN TO RECOGNIZE IN THE CURRENT QUARTER THE COMPANY ALSO HAS EMPLOYMENT GUARANTEES THAT PREVENT IT FROM EXPANDING RAPIDLY IN A BOOM THEY'RE TRYING TO SIMPLY TAKE ADVANTAGE OF THE MARKET BEING STRONG AND I'M NOT SURE GIVEN THEIR PROBLEMS IN THE PAST THEY CAN REMAIN A LONG TERM VIABLE COMPETITOR SAID J CLARENCE MORRISON METALS ANALYST WITH PRUDENTIAL SECURITIES NATIONAL STEEL WAS A PUBLIC COMPANY FROM 1929 TO 1983 WHEN IT BECAME A UNIT OF A NEW HOLDING COMPANY NATIONAL INTERGROUP NKK BOUGHT 50 OF NATIONAL STEEL IN 1984 AND AFTER A SERIES OF MANAGEMENT SHAKEUPS AND BOTCHED DIVERSIFICATIONS AT NATIONAL INTERGROUP NKK BOUGHT AN ADDITIONAL 20 OF NATIONAL STEEL IN 1990 9302080133 930208 O&Y PLAN CLEARED FOR RESTRUCTURING OF CANADIAN UNIT BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO AN ONTARIO BANKRUPTCY COURT GAVE FINAL COURT APPROVAL TO OLYMPIA & YORK DEVELOPMENTS LTD'S PLAN TO RESTRUCTURE ITS CANADIAN BUSINESS THE COURT APPROVAL FORMALLY ENDS MORE THAN NINE MONTHS OF NEGOTIATIONS BETWEEN O&Y AND ITS CREDITORS TO RESTRUCTURE SOME US7 BILLION IN DEBT RELATED TO THE CANADIAN OPERATIONS O&Y IS EXPECTED TO EMERGE FROM CANADIAN BANKRUPTCY LAW PROTECTION BY MIDMARCH AFTER COMPLETING THE LEGAL PAPERWORK RELATED TO THE RESTRUCTURING O&Y'S CURRENT OWNERS TORONTO'S REICHMANN FAMILY PAID A HEAVY PRICE TO REACH AN AGREEMENT WITH THE CREDITORS THE COMPANY'S SECURED LENDERS HAVE THE RIGHT TO SEIZE AT ANY TIME THE COLLATERAL SECURING THEIR DEBT MAINLY PREMIUM OFFICE TOWERS IN CANADA AND THE REICHMANNS HAVE CEDED EXECUTIVE CONTROL OF THE COMPANY TO A COURT APPOINTED ADMINISTRATOR FROM ACCOUNTING FIRM COOPERS & LYBRAND WHO WILL WORK CLOSELY WITH A COMMITTEE OF O&Y'S MAJOR BANK LENDERS OLYMPIA & YORK WAS ONE OF THE MOST RESPECTED REAL ESTATE EMPIRES IN THE WORLD UNFORTUNATELY IT HAS FALLEN ON HARD TIMES AND INDEED IT SEEMS IT HAS FALLEN APART SAID JUSTICE ROBERT BLAIR OF THE ONTARIO COURT OF JUSTICE IN APPROVING THE COMPANY'S PLAN WITH THE CANADIAN BANKRUPTCY PROCEEDINGS NOW RESOLVED O&Y AND ITS CREDITORS CAN TURN MORE OF THEIR ATTENTION TO RESTRUCTURING THE COMPANY'S SUBSIDIARY IN THE US WHERE O&Y HAS SO FAR AVOIDED FILING FOR BANKRUPTCY COURT PROTECTION CREDITORS TO OLYMPIA & YORK COS USA WHICH HAD DEBT OF 58 BILLION AT THE END OF 1991 SAY THEY NOW WILL MAINLY BE WATCHING TO SEE WHAT IMPACT COOPERS & LYBRAND AND THE CANADIAN BANK LENDERS WILL HAVE ON THE US RESTRUCTURING LEADING THE US NEGOTIATIONS FOR O&Y HAS BEEN JOHN ZUCOTTI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE US UNIT WHO IS WELL REGARDED BY THE COMPANY'S CREDITORS STILL A NEW BOARD FOR THE US SUBSIDIARY WHICH IS EXPECTED TO BE NAMED SOON COULD CHANGE THE DIRECTION SET BY MR ZUCOTTI FOR THE UNIT'S RESTRUCTURING PROGRAM SOME PEOPLE CLOSE TO THE SITUATION FEAR THIS COULD RUPTURE FRAGILE STANDSTILL AGREEMENTS REACHED OVER THE PAST SEVERAL MONTHS BETWEEN O&Y AND ITS US CREDITORS WHICH IN TURN COULD PUSH O&Y TO FILE FOR CHAPTER 11 BANKRUPTCY COURT PROTECTION THE WHOLE US RESTRUCTURING IS IN A STATE OF FLUX RIGHT NOW THERE IS SOME GENERAL UNCERTAINTY ABOUT THE ROLE OF THE US SUBSIDIARY'S NEW BOARD A CREDITOR SAID 9302080132 930208 CHEEK EMERGES AS A TOP CHOICE TO HEAD SEC TENNESSEE SECURITIES LAWYER HAS RAFT OF CREDENTIALS BACKS HOLDERS' RIGHTS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TENNESSEE SECURITIES LAWYER JAMES CHEEK III HAS EMERGED AS A STRONG CONTENDER TO HEAD THE SECURITIES AND EXCHANGE COMMISSION THREATENING TO BUMP CONGRESSIONAL STAFFER CONSUELA WASHINGTON FROM THE LEADING POSITION THE 50YEAROLD MR CHEEK WHO IS BACKED BY VICE PRESIDENT ALBERT GORE IS A RESPECTED SECURITIES LAWYER WITH A LAUNDRY LIST OF CREDENTIALS ON LEGAL COMMITTEES HE RECENTLY SERVED AS CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S COMMITTEE ON FEDERAL SECURITIES REGULATION A GROUP THAT SERVES AS THE SECURITIES BAR'S MAIN LINK TO THE SEC AND CONGRESS WITH HIS FIRM BASS BERRY & SIMS HE HAS HANDLED FOR CORPORATE CLIENTS SUCH ISSUES AS MERGERS AND ACQUISITIONS INITIAL OFFERINGS VENTURE CAPITAL AND LITIGATION STEMMING FROM ENFORCEMENT ACTIONS HE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE INDIVIDUALS FAMILIAR WITH THE CLINTON ADMINISTRATION'S THINKING ON THE SUBJECT SAID THAT NO DECISION HAS BEEN MADE AND THAT A NEW SEC CHIEF PROBABLY WON'T BE ANNOUNCED FOR AT LEAST SEVERAL DAYS AS THE WHITE HOUSE GRAPPLES WITH THE MESS OF FINDING AN ATTORNEY GENERAL RICHARD BREEDEN CURRENTLY HEADS THE FIVEMEMBER COMMISSION AND HIS TERM EXPIRES THIS SUMMER BUT THE AGENCY'S CHIEF SERVES AT THE BEHEST OF THE PRESIDENT WHO HAS THE POWER TO REPLACE HIM AT ANY TIME MS WASHINGTON 44 IS IN THE RUNNING TO BECOME THE FIRST WOMAN AND THE FIRST BLACK TO HEAD THE AGENCY AS A COUNSEL TO THE HOUSE ENERGY AND COMMERCE COMMITTEE MS WASHINGTON RECEIVED THE BACKING OF JOHN DINGELL THE MICHIGAN DEMOCRAT WHO HEADS THE POWERFUL COMMITTEE BUT THOSE TIES MAY HAVE HURT HER CHANCES FOR THE NOMINATION PEOPLE FAMILIAR WITH THE SITUATION SAID MR DINGELL AND MS WASHINGTON ANGERED CORPORATE LAWYERS WITH THEIR ATTEMPTS TO REIN IN TAKEOVERS DURING THE 1980S AND THEY HAVE TAKEN SEVERAL STANCES IN RECENT YEARS AGAINST BANKS AND THE FUTURES INDUSTRY IN ADDITION MS WASHINGTON'S STYLE CAN BE ACERBIC PEOPLE FAMILIAR WITH THE SITUATION SAY THAT IF SHE ISN'T CHOSEN FOR CHAIRWOMAN SHE IS LIKELY TO BE OFFERED ONE OF THE LESSER COMMISSIONER SLOTS MS WASHINGTON COULDN'T BE REACHED FOR COMMENT MR CHEEK A NASHVILLE NATIVE WHO ATTENDED DUKE UNIVERSITY VANDERBILT UNIVERSITY LAW SCHOOL AND HARVARD UNIVERSITY FOR HIS MASTER'S DEGREE IN LAW IS A STRONG BACKER OF SHAREHOLDER RIGHTS HE HAS ARGUED THAT THE STEPPEDUP ROLE OF SHAREHOLDERS IN THE PAST YEAR OR SO HAS HELPED CORPORATE DIRECTORS OVERSEE THE MANAGEMENT OF COMPANIES ON THE OTHER HAND HIS YEARS OF SERVING CORPORATE CLIENTS ARE LIKELY TO HAVE CONVINCED HIM THAT EXCESSIVE REGULATION OF COMPANIES CAN BE COUNTERPRODUCTIVE MEANWHILE THE LEADING CANDIDATE TO CHAIR THE FEDERAL DESPOSIT INSURANCE CORP IS WILLIAM BOWEN A FORMER LITTLE ROCK BANKER WHO SERVED AS MR CLINTON'S LAST CHIEF OF STAFF WHILE HE WAS GOVERNOR OF ARKANSAS BEFORE THAT MR BOWEN WAS CHAIRMAN OF FIRST COMMERCIAL BANK THE LARGEST IN ARKANSAS DURING THE CAMPAIGN MR BOWEN OFTEN SERVED AS THE CONDUIT BETWEEN THE BANKING INDUSTRY AND MR CLINTON HE WOULD BE A POPULAR CHOICE WITH THE INDUSTRY BECAUSE HE KNOWS BANKING AND HAS MR CLINTON'S EAR BANKERS BELIEVE MR BOWEN WOULD SUPPORT THE INDUSTRY'S EFFORTS TO PARE NEEDLESS REGULATION WHICH BANKERS DEFINE AS RULES THAT INCREASE PAPERWORK WITHOUT AUGMENTING BANKING SAFETY THE FDIC AND OTHER BANK REGULATORS ARE IN THE PROCESS OF IMPOSING SCORES OF RULES REQUIRED BY A 1991 LAW ALTHOUGH MR BOWEN'S FRIENDSHIP WITH THE PRESIDENT MAKES HIM THE LEADING CANDIDATE THERE ARE OTHER NAMES ON THE WHITE HOUSE LIST INCLUDING KAREN HORN FORMER PRESIDENT OF THE FEDERAL RESERVE BANK OF CLEVELAND KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9302080131 930208 WHO'S NEWS PHILLIPSVAN HEUSEN CORP PHILLIPSVAN HEUSEN CORP NEW YORK MARIA ELENA LAGOMASINO 43 YEARS OLD WAS ELECTED A DIRECTOR OF THIS SHIRT AND SHOE COMPANY SUCCEEDING JAMES J MURPHY A VICE PRESIDENT WHO RESIGNED SHE IS A SENIOR VICE PRESIDENT AT CHASE MANHATTAN BANK A UNIT OF CHASE MANHATTAN CORP 9302080130 930208 HUNGARY FAILS TO REACH ACCORD BUDAPEST HUNGARY AND THE INTERNATIONAL MONETARY FUND FAILED TO REACH AGREEMENT ON THE GOVERNMENT'S DEFICITREDUCTION PROPOSALS AIMED AT REVIVING FROZEN IMF LOANS AND OPENING THE WAY TOWARD A NEW THREEYEAR FUNDING PACKAGE THE LACK OF A BREAKTHROUGH IN THE LATEST ROUND OF TALKS MEANS THAT THE FINAL 400 MILLION PART OF A 17 BILLION IMF LOAN SUSPENDED IN JULY AFTER THE STATE BUDGET DEFICIT SOARED OVER ORIGINAL PROJECTIONS WON'T BE HANDED OVER THE FAILURE ALSO BODES ILL FOR THE SUCCESS OF NEGOTIATIONS ON FRESH LOANS TO COVER THE PERIOD BEGINNING IN 1994 FIGURES GIVEN TO THE IMF DELEGATION DURING THEIR JUSTENDED VISIT SHOWED THE DEFICIT POSSIBLY REACHING 220 BILLION FORINTS 264 BILLION BY 1996 COMBINED WITH A SOCIALSECURITY BUDGET DEFICIT THAT SURPASSES THE THRESHOLD OF 6 OF GROSS DOMESTIC PRODUCT THAT THE IMF USUALLY TOLERATES 9302080129 930208 TECHNOLOGY & MEDICINE PFIZER FINDS PROBLEM WITH TEST TO DETECT FAULTY HEART VALVES NEW YORK PFIZER INC SAID A STUDY HAS RAISED QUESTIONS ABOUT THE RELIABILITY OF AN IMAGING TECHNIQUE BEING STUDIED AS A WAY TO IDENTIFY PATIENTS WITH DEFECTIVE ARTIFICIAL HEART VALVES WHILE THE COMPANY SAID THE COMPUTERASSISTED XRAY PROCEDURE IS STILL PROMISING IT HAS RESULTED IN ONE FALSE READING AND ANOTHER POTENTIALLY FALSE READING ACCORDING TO FINDINGS AT THE HALFWAY POINT OF THE STUDY RESEARCHERS AT WILLIAM BEAUMONT HOSPITAL IN MINNESOTA ARE TRYING THE TECHNIQUE ON 300 PATIENTS WITH THE VALVES MADE BY PFIZER'S SHILEY UNIT SEVERAL HUNDRED PEOPLE HAVE DIED AFTER THEIR VALVES FRACTURED AN ESTIMATED 50000 PEOPLE WORLDWIDE HAVE THE VALVES UNDER A FEDERAL COURTAPPROVED SETTLEMENT OF A CLASSACTION SUIT PFIZER IS SPONSORING RESEARCH TO FIND A WAY TO DETERMINE WHICH PATIENTS HAVE DEFECTIVE VALVES SO FAR PFIZER SAID THE XRAY PROCEDURE HAS FOUND FIVE VALVES WITH SUSPECTED DEFECTS ALL OF WHICH WERE REMOVED SURGICALLY FURTHER TESTS AFTER REMOVAL DETERMINED THAT ONE OF THE FIVE WASN'T DEFECTIVE PFIZER SAID IT WAS CONCERNED ABOUT THE FALSE POSITIVE RESULT WHICH COULD EXPOSE PATIENTS UNNECESSARILY TO THE RISKS OF VALVEREPLACEMENT SURGERY ABOUT 5 OF PATIENTS WHO UNDERGO VALVE REPLACEMENT SURGERY DON'T SURVIVE THE OPERATION ANOTHER PATIENT WHOSE VALVE APPEARED TO BE NORMAL IN THE XRAY LATER DIED WHEN THE VALVE FRACTURED PFIZER SAID THAT VALVE ISN'T AVAILABLE TO BE ANALYZED AND RESEARCHERS DON'T KNOW WHETHER THE XRAY RESULT WAS A FALSE NEGATIVE OR WHETHER THE FRACTURE DEVELOPED AFTER THE TEST PFIZER EXPECTS THE STUDY WILL BE COMPLETED LATER THIS YEAR THE DATA WILL BE REVIEWED BY THE US FOOD AND DRUG ADMINISTRATION TO DETERMINE WHETHER TO MAKE THE TECHNIQUE WIDELY AVAILABLE TO PEOPLE WITH THE POTENTIALLY DEFECTIVE VALVES 9302080128 930208 INTERNATIONAL FOREIGN INVESTMENT PLEDGES OF 4 BILLION MAY FINALLY LET POLAND TURN THE CORNER BY DANIEL MICHAELS SPECIAL TO THE WALL STREET JOURNAL POLAND IS NO LONGER CENTRAL EUROPE'S UGLY DUCKLING SITTING UNNOTICED AS WESTERN BUSINESSES COURT MORE SEDUCTIVE SISTERS HUNGARY AND THE CZECH REPUBLIC LAST YEAR FOR THE FIRST TIME SINCE THE BREAKUP OF THE SOVIET BLOC FOREIGN INVESTMENT PLEDGED TO POLAND ROSE TO THE LEVELS OF THE TWO OTHER NATIONS INTERNATIONAL INTERESTS LAST YEAR ANNOUNCED THEIR INTENTIONS TO INVEST A TOTAL OF MORE THAN 4 BILLION IN POLAND A FOURFOLD INCREASE FROM 1991 ACCORDING TO THE STATE FOREIGN INVESTMENT AGENCY BUT ACTUAL FOREIGN INVESTMENT IN POLAND LAST YEAR AS OPPOSED TO COMMITMENTS PROBABLY WASN'T MUCH MORE THAN 150 MILLION SOME BANKERS ESTIMATE BECAUSE MANY PLEDGES WERE FOR FUTURE YEARS AND PROMISES OFTEN DIE QUIETLY AFTER THEY ARE MADE AND ACTUAL FOREIGN INVESTMENT IN HUNGARY AND THE CZECH REPUBLIC REMAIN FAR HIGHER THAN IN POLAND STILL 1992 MAY BE REMEMBERED AS THE YEAR POLAND TURNED THE CORNER ON FOREIGN INVESTMENT AND EARLY INDICATIONS ARE THAT 1993 COULD BE EVEN BETTER POLAND OF ALL MEMBERS OF THE FORMER SOVIET BLOC EARLY ON INTRODUCED THE MOST RADICAL REFORMS ITS PROGRAM REMAINS THE FARTHESTREACHING EVEN SO EARLY FOREIGN INVESTMENT WAS A TRICKLE BECAUSE POLAND HAD THE REGION'S HIGHEST INFLATION ITS MOST DAUNTING DEBTS AND SOME OF ITS MOST UNREFORMED COLLECTIONS OF MASSIVE STATERUN INDUSTRIAL PLANTS FINALLY THOUGH SHOCK THERAPY THE REFORM PROGRAM BEGUN IN LATE 1989 IS PAYING OFF THE GOVERNMENT SAYS INFLATION LAST YEAR DROPPED TO ABOUT 40 FROM ABOUT 70 INDUSTRIAL PRODUCTION GREW 35 AND THE COUNTRY REGISTERED A 500 MILLION TRADE SURPLUS THE POLITICAL SITUATION OF PRIME IMPORTANCE TO POTENTIAL INVESTORS CALMED SLIGHTLY UNDER A NEW PRIME MINISTER HANNA SUCHOWKA POLAND'S HOMOGENEITY IN A REGION WRACKED BY ETHNIC VIOLENCE IS A GREATER INVESTMENT DRAW WITH EACH FRESH ROUND OF VIOLENCE IN YUGOSLAVIA AND THE FORMER SOVIET UNION THE ANNOUNCEMENT IN 1992 OF MAJOR ACQUISITIONS BY FIAT SPA GENERAL MOTORS CORP AND INTERNATIONAL PAPER CO ALSO BOOSTED CONFIDENCE NEW RESTAURANTS OPENED BY BURGER KING PIZZA HUT AND MCDONALD'S GAVE WARSAW MORE OF A WESTERN GLOSS SOME OF THESE ATTENTIONGRABBING VENTURES WERE MONTHS OR YEARS IN THE WORKS BUT WESTERN OBSERVERS IN POLAND SAY MANY SMALLER DEALS HAPPENED BECAUSE POLAND IS COMING AROUND PEOPLE SEE A FEW SUCCESSES AND THEY REALIZE THERE'S A REAL OPPORTUNITY HERE SAYS BOB KNOWLES GENERAL MANAGER OF LEVI STRAUSS POLAND LEVI STRAUSS WHICH BUILT A FACTORY IN PLOCK AND OPENED 19 RETAIL STORES AROUND THE COUNTRY SAYS ITS POLISH PROJECTS HAVE EXCEEDED EXPECTATIONS WHICH WERE ADMITTEDLY LOW IN THREE YEARS POLAND'S IMAGE HAS EVOLVED FROM ECONOMIC BASKET CASE TO POTENTIAL GROWTH MARKET WITH 39 MILLION PEOPLE POLAND OFFERS HALF OF ALL THE CONSUMERS OF CENTRAL EUROPE GEOGRAPHICALLY AND CULTURALLY IT IS THE GATEWAY TO THE BALTIC STATES UKRAINE RUSSIA AND OTHER FORMER SOVIET REPUBLICS IT ALSO HAS HISTORICAL TIES TO SCANDINAVIA AND GERMANY WHILE HEADACHES SUCH AS UNEMPLOYMENT AND A TROUBLESOME BUDGET DEFICIT PERSIST LOW LABOR COSTS RECENTLY ESTIMATED AT 1 AN HOUR FOR AN EDUCATED AND SKILLED WORK FORCE CONTRIBUTE TO POLAND'S GROWING APPEAL AND AS POLAND'S SKIES BRIGHTEN HUNGARY AND THE FORMER CZECHOSLOVAKIA AS OF THIS YEAR DIVIDED INTO TWO REPUBLICS APPEAR TO BE ENTERING REFORMINDUCED RECESSIONS SIMILAR TO THE ONE POLAND IS NOW SHAKING POLAND'S INCESSANT PARLIAMENTARY BICKERING ALSO SEEMS A SMALL PROBLEM COMPARED WITH THE FRAGMENTATION OF SURROUNDING COUNTRIES HOWEVER POLAND HAS ONE PROBLEM ITS NEIGHBORS DON'T SHARE DEFAULT ON ITS SOVEREIGN DEBT BECAUSE POLAND IS PAST DUE ON MORE THAN 49 BILLION OWED TO WESTERN BANKS AND GOVERNMENTS CROSSBORDER FINANCE IS EXTRAORDINARILY DIFFICULT MOST COMMERCIAL BANKS WON'T TOUCH POLAND MEANING INVESTORS MUST PERFORM FINANCIAL CONTORTIONS OR ARRIVE CARRYING CASH UNTIL A DEBT AGREEMENT IS REACHED WITH THE INTERNATIONAL MONETARY FUND AND OTHER CREDITORS MANY POTENTIAL INVESTORS WILL WAIT ON THE SIDELINES LINGERING ABSURDITIES OF THE OLD CENTRALLY PLANNED SYSTEM AND A PANEUROPEAN RECESSION CAN TIP THE SCALES AGAINST FAST ACTION STILL FEWER BUSINESSES ARE TAKING THE WAITANDSEE APPROACH THE US EMBASSY'S WARSAW COMMERCIAL OFFICE HAS SEEN A RECENT UPTICK IN INQUIRIES AND TRADE MISSIONS SAYS ONE OFFICIAL IN THE PAST WE SAW A LOT OF TIRE KICKERS' NOW WE'RE SEEING MORE SERIOUS BUSINESS 9302080127 930208 WHO'S NEWS HARMAN INTERNATIONAL INDUSTRIES INC HARMAN INTERNATIONAL INDUSTRIES INC WASHINGTON THIS MAKER OF AUDIO AND VIDEO PRODUCTS ANNOUNCED A TOPLEVEL MANAGEMENT REALIGNMENT CARY CHRISTIE 48 WAS NAMED VICE PRESIDENT OF MARKETING FLOYD TOOLE 54 WAS NAMED VICE PRESIDENT OF ENGINEERING BRUCE SCROGIN 50 WAS NAMED VICE PRESIDENT OF PLANNING TOM JACOBY 38 WAS NAMED PRESIDENT OF THE COMPANY'S CONSUMER GROUP RICHARD JAMES 48 WAS NAMED PRESIDENT OF THE PROFESSIONAL GROUP NIELS JESPERSEN 47 WAS NAMED MANAGING DIRECTOR FOR EUROPEAN MARKETING KOHTARO YASUDA 46 WAS NAMED DIRECTOR OF ASIAN MARKETING MARK FRIEDMAN 43 WAS NAMED PRESIDENT OF JBL CONSUMER WORLDWIDE 9302080126 930208 LETTERS TO THE EDITOR JUST COMMON FOLKS BUT UNCOMMONLY SMART YOUR JAN 21 PAGEONE ARTICLE CLINTON'S PEOPLE PRESIDENT'S TEAM IS ELITE CREW ADDRESSING COMMON MAN'S WOES CLAIMS THERE IS A STRIKING GULF BETWEEN THE COMMON PEOPLE TO WHOM THE CLINTON CAMPAIGN MADE ITS APPEAL AND THE WELLEDUCATED WELLOFF GROUP WHO WILL BE GOVERNING THEM IF THAT'S TRUE I SUPPOSE THE NEW PRESIDENT'S TEAM WILL BE MADE UP OF RATHER UNCOMMON PEOPLE WITH A PROVEN RECORD OF SUCCESS IS THAT SO TERRIBLE MAYBE I'M STUPID ABOUT PEOPLE'S PREFERENCES FOR LEADERSHIP BUT I THINK THE AMERICAN PEOPLE PROBABLY WANT UNCOMMONLY SMART FOLKS MAKING KEY DECISIONS ABOUT THEIR COUNTRY AND I THINK IT'S PROBABLY ALL RIGHT WITH MOST OF THEM THAT MR CLINTON AND HIS TEAM RECEIVED THE BEST EDUCATION AVAILABLE IF YOUR REPORTERS HAVE A BETTER IDEA THAN HAVING THE SMARTEST PEOPLE IN THE WORLD BE IN CHARGE THEY SHOULD LET US ALL KNOW 9302080125 930208 WHO'S NEWS BELL COMMUNICATIONS RESEARCH INC BELL COMMUNICATIONS RESEARCH INC LIVINGSTON NJ IRWIN DORROS 63 YEARS OLD RETIRED AS EXECUTIVE VICE PRESIDENT AND CHIEF TECHNICAL OFFICER OF THIS RESEARCH LABORATORY OWNED BY THE SEVEN REGIONAL BELL TELEPHONE COMPANIES BELLCORE SAID HE WON'T BE REPLACED THE LAB PLANS A RESTRUCTURING LATER THIS YEAR 9302080124 930208 CREDIT RATINGS AMERICAN RE CORP NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING THE B1 RATING OF AMERICAN RE'S SENIOR SUBORDINATED DEBENTURES FOR POSSIBLE UPGRADE THE RATINGS AGENCY SAYS THE REVIEW AFFECTS 450 MILLION OF DEBT MOODY'S SAID THE REVIEW WAS PROMPTED BY AMERICAN RE'S JANUARY INITIAL PUBLIC OFFERING AND BY ITS CONCURRENT REDUCTION OF DEBT AND PREFERRED STOCK OFFICIALS AT THE PRINCETON NJ REINSURANCE COMPANY COULDN'T BE REACHED TO COMMENT CONSECO INC CARMEL IND MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON CONSECO'S 140 MILLION IN SUBORDINATED DEBT TO BA3 FROM B2 THE RATING CONCERN CITED THE INSURANCE HOLDING COMPANY'S IMPROVING CAPITALIZATION AND GROWTH IN FEE INCOME AS THE PRINCIPAL REASONS FOR THE RATING UPGRADE FOODMAKER INC NEW YORK STANDARD & POOR'S CORP REVISED ITS RATINGS OUTLOOK ON THIS FASTFOOD COMPANY TO NEGATIVE FROM STABLE CITING THE COMPANY'S POTENTIAL UNINSURED LIABILITY AND NEGATIVE EFFECT ON ITS BUSINESS FROM THE ILLNESSES AND AT LEAST ONE DEATH CAUSED BY CONTAMINATED HAMBURGER MEAT THE RATINGS AGENCY AFFIRMED ITS SENIOR DEBT RATING OF DOUBLEBMINUS AND SUBORDINATED DEBT RATING OF SINGLEB BUT WARNED THAT IT COULD DOWNGRADE THE RATINGS IF SALES DROP OFF OR IF THE COMPANY HAS ANY UNINSURED LIABILITY FROM THE CONTAMINATION INCIDENTS FOODMAKER SAN DIEGO HAS ABOUT 380 MILLION OF DEBT OUTSTANDING 9302080123 930208 OTC FOCUS LEARNING CO'S STEADY CLIMB IS REMINDER OF HOW HARD IT IS TO KNOW WHEN TO SELL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER SOARING 45 IN FOUR MONTHS SHARES OF LEARNING CO ARE FLYING MIGHTY HIGH FOR AN EDUCATIONAL SOFTWARE COMPANY WITH PROJECTED ANNUAL REVENUE OF LESS THAN 30 MILLION ANALYSTS SAY THE STOCK'S STEADY ADVANCE IS A REMINDER OF HOW HARD IT IS TO PINPOINT THE END OF A RALLY IN TECHNOLOGY WHERE SEVERAL LARGE STOCKS GOT KNOCKED DOWN LATE LAST WEEK A NUMBER OF SAVVY INVESTORS BAILED OUT OF LEARNING CO TOO SOON WHILE IT WAS STILL ON THE WAY UP ALMOST ALL THE TECH STOCKS HAVE GONE TO TREMENDOUSLY HIGH VALUATIONS IT'S HARD TO KNOW WHEN TO SELL SAYS MICHAEL HAINES PORTFOLIO MANAGER OF FOUNDERS ASSET MANAGEMENT'S FRONTIER AND DISCOVERY SMALLSTOCK FUNDS IN DENVER HE BOUGHT IN AT 11 LAST APRIL WHEN THE COMPANY WENT PUBLIC AND SOLD A COUPLE MONTHS AGO AT 16 TOO EARLY BUT I CAN'T COMPLAIN ABOUT MAKING PROFITS HOPPING OFF TOO SOON IS BETTER THAN TOO LATE LEARNING CO'S STOCK HAS BEEN SLIPPING BACK FROM A JANUARY PEAK OF 22 1/4 IT FINISHED FRIDAY AT 20 AFTER THE COMPANY MADE AN OFFERING OF ADDITIONAL STOCK THURSDAY AT THE SAME PRICE ON OCT 1 THE STOCK WAS TRADING AT 13 3/4 THE STOCK HAS GOTTEN AHEAD OF ITSELF SAYS ROBERT KLEIBER AN ANALYST WITH PIPER JAFFRAY IN MINNEAPOLIS EVERYTHING IN THE PERSONAL SOFTWARE GROUP HAS GONE BONKERS IT'S A GOOD COMPANY BUT THERE IS NO WAY THEY CAN EVEN USE THAT NEW CASH TO DEVELOP PRODUCTS AT A FAST ENOUGH RATE TO KEEP GROWING AT SUCH A HIGH RATE IN DECEMBER PERHAPS A LITTLE TOO EARLY MR KLEIBER DOWNGRADED THE STOCK TO ACCUMULATE FROM BUY COMPANY OFFICIALS DIDN'T RETURN PHONE CALLS MORE THAN HALF A DOZEN COMPETITORS ARE JUMPING INTO THE EDUCATIONALSOFTWARE MARKET WHICH ANALYSTS SAY IS CURRENTLY A 100 MILLION INDUSTRY THE STOCK HAS BEEN ZOOMING AT DOUBLE THE RATE OF THE NASDAQ COMPOSITE INDEX WHICH HAS CLIMBED 21 SINCE EARLY OCTOBER CLOSING AT 70098 DOWN 787 POINTS FRIDAY BUT ALTHOUGH THE COMPANY'S PROFIT IS EXPECTED TO GROW AT A RAPID 44 RATE IN THE FISCAL YEAR THROUGH JUNE INVESTORS SAY THE AIR IS GETTING THIN FOR THE STOCK CURRENTLY TRADING AT 38 TIMES EXPECTED EARNINGS OF 52 CENTS A SHARE FOR FISCAL 1993 IN NOVEMBER AS THE STOCK WAS ON ITS WAY UP SIX CORPORATE OFFICERS AND DIRECTORS OF LEARNING CO SOLD 124431 SHARES ACCORDING TO INSIDER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION HALF THOSE SHARES WERE SOLD IMMEDIATELY FOLLOWING EXERCISE OF OPTIONS THE INSIDERS SOLD AT 1525 TO 1725 ACCORDING TO THE FILINGS WHILE THE SALES TOOK PLACE IN NOVEMBER FILINGS DISCLOSING THE INSIDERS' INTENTIONS TO SELL SOME OF THOSE SHARES WERE RECEIVED AT THE SEC IN LATE JANUARY ACCORDING TO SEC RECORD DATES LISTED AMONG THE SELLERS WERE THE COMPANY'S CHAIRMAN MAURICE DUCA AND TRUSTS IN HIS FAMILY NAME AND LES SCHMIDT CHIEF FINANCIAL OFFICER BOTH OFFICERS ARE STILL BIG HOLDERS MR DUCA WITH 11 MILLION SHARES AND MR SCHMIDT WITH 53100 ACCORDING TO THE PROSPECTUS FOR THURSDAY'S OFFERING OF 13 MILLION SHARES VARIOUS STOCKHOLDERS INCLUDING MESSRS DUCA AND SCHMIDT SOLD 100000 OF THOSE SHARES IN THE OFFERING THE FREMONT CALIF COMPANY DEVELOPS EDUCATIONAL PERSONAL COMPUTER SOFTWARE FOR CHILDREN AND YOUNG ADULTS FOR USE AT HOME AND IN SCHOOL THE COMPANY CURRENTLY SELLS 30 PRODUCTS COMPRISING 17 TITLES OPERATING ON ONE OR MORE PLATFORMS INCLUDING IBMCOMPATIBLE AND APPLE MACINTOSH PERSONAL COMPUTERS THE PRODUCTS TEACH BASIC SKILLS IN THE AREAS OF READING MATH WRITING AND PROBLEM SOLVING MANY INVESTORS ARE FAMILIAR WITH THE READER RABBIT SERIES INVESTORS SHOULDN'T JUMP SHIP TOO QUICKLY SAYS LAWRENCE BOWMAN HEAD OF FIDELITY'S EMERGING GROWTH FUND MR BOWMAN SAYS HE CONTINUES TO HOLD A POSITION IN THE STOCK EVEN THOUGH HE HAS SOLD SOME IT'S A HIGHQUALITY SOFTWARE COMPANY IN A GOOD SEGMENT OF THE MARKET WITH TREMENDOUS EARNINGS AND REVENUE GROWTH SAYS MR BOWMAN STILL RIGHT NOW THE STOCK IS AT A FAIR VALUATION AND I DON'T SEE TREMENDOUS UPSIDE IN THE NEXT TWO QUARTERS UNTIL 1994 WHEN A COUPLE NEW TITLES ARE DUE TO COME OUT IT WILL PROBABLY BE A SIDEWAYS STOCK FOR THE NEXT TWO QUARTERS MR BOWMAN SAYS THE COMPANY HAS THE POTENTIAL TO BE A STEADIER PERFORMER THAN MANY OTHER SOFTWARE CONCERNS THAT SELL COMPUTER GAMES THIS ISN'T FADDISH A NEW PRODUCT CAN LAST ONE TO TWO YEARS UNLIKE THE GAME PRODUCTS THAT ARE THROWN OUT AFTER THREE MONTHS OVERTHECOUNTER STOCKS PLUNGED 787 POINTS THE SECOND BIGGEST ONEDAY LOSS IN NEARLY EIGHT MONTHS FROM PROFITTAKING IN TECHNOLOGY AND BIOTECHNOLOGY AFTER SETTING A RECORD OF 70885 ON THURSDAY THE NASDAQ COMPOSITE INDEX FELL 787 POINTS OR 11 TO 70098 DECLINING ISSUES OUTNUMBERED ADVANCERS 1588 TO 1094 ON TOTAL VOLUME OF 2932 MILLION SHARES UP FROM 2847 MILLION THURSDAY TRADERS SAID THE BROADBASED SELLOFF IN TECHNOLOGY STOCKS MIGHT INDICATE THAT THE NASDAQ MARKET IS HEADED FOR A SETBACK AFTER ENJOYING ITS RECENT LARGE GAINS MICROSOFT FINISHED THE SESSION UP 4 AT 89 AFTER TRADING AS LOW AS 82 1/4 MICROSOFT SHARES PLUNGED EARLIER IN THE DAY ON FEARS OF AN EXPECTED FEDERAL TRADE COMMISSION DECISION SURROUNDING POSSIBLE ANTITRUST VIOLATIONS BUT THE FTC INDICATED IT DIDN'T REACH A DECISION AND THAT IT WILL CONTINUE TO DELIBERATE LEADING MICROSOFT STOCK TO REBOUND AN OUTSIDE SPOKESWOMAN SAID MICROSOFT WILL CONTINUE TO COOPERATE FULLY WITH THE FTC GOLDMAN SACHS & CO ANALYST RICK SHERLUND REPEATED HIS BUY RECOMMENDATION FOR MICROSOFT IN THE AFTERNOON ON THE NEWS THE REST OF THE TECHNOLOGY SECTOR WAS HIT BY SELLING APPLE COMPUTER DROPPED 2 1/4 TO 57 1/4 DELL COMPUTER FELL 1 5/8 TO 39 1/8 SUN MICROSYSTEMS A WORKSTATION MANUFACTURER LOST 1 3/4 TO 35 AND INTEL PLUNGED 2 3/8 TO 106 7/8 INTERSOLV PLUMMETED 5 5/8 TO 9 1/8 THE PRODUCER OF COMPUTERAIDED SOFTWARE ENGINEERING PACKAGES LATE THURSDAY ESTIMATED FISCAL THIRDQUARTER PROFIT AT ONE CENT TO THREE CENTS A SHARE COMPARED WITH 16 CENTS A SHARE A YEAR EARLIER EARLY FRIDAY MORNING ALEX BROWN & SONS DOWNGRADED THE STOCK TO BUY FROM STRONG BUY ONLY AN HOUR AND A HALF AFTER THE STOCK HAD PLUMMETED IN THE WAKE OF THE DOWNGRADE THE FIRM CHANGED ITS RATING BACK TO STRONG BUY BIOTECHNOLOGY STOCKS REMAINED WEAK THE DAY'S MOST ACTIVE STOCK AMGEN FELL 5 7/8 TO 53 7/8 MABON SECURITIES CORP LOWERED ITS INVESTMENT RATING ON AMGEN TO SELL FROM HOLD SAYING THAT THE SALES MOMENTUM FOR THE COMPANY'S PRODUCTS IS SLOWING MABON ALSO CUT AMGEN EARNINGS ESTIMATES FOR 1993 TO 265 A SHARE FROM 270 AND FOR 1994 TO 315 A SHARE FROM 360 9302080122 930208 INTERNATIONAL SWISS RE FINDS PATH AFTER LOSING ITS WAY SAXER HOPES PLAN WILL CORRECT REINSURER'S MISSTEPS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL ZURICH AFTER A STRING OF FINANCIAL MISHAPS IN THE LATE 1980S SWISS REINSURANCE CO IS TRYING TO BOUNCE BACK WITH A NEW GENERATION OF TOP MANAGERS AND PLANS FOR A COMPREHENSIVE CORPORATE OVERHAUL THE PROSPECT IS PROMPTING A FLURRY OF BUY RECOMMENDATIONS FROM INTERNATIONAL BROKERAGE HOUSES SWISS RE SAYS JONATHAN WALKER AT BARING SECURITIES IN LONDON COULD BE ONE OF THE BEST INVESTMENT OPPORTUNITIES IN THE EUROPEAN INSURANCE SECTOR THE COMPANY IS THE SECONDLARGEST OF THE TWO MAJOR PLAYERS IN THE WORLD OF PROFESSIONAL REINSURANCE ITS 10 SHARE OF THE INTERNATIONAL MARKET IS JUST BELOW THAT OF GERMANY'S MUNICH REINSURANCE CO AMONG OTHER THINGS IT OWNS ONE OF THE LARGEST US REINSURERS NORTH AMERICAN REINSURANCE CORP AND HAS SUBSTANTIAL INTERESTS IN GERMANY ITALY AND OTHER EUROPEAN COUNTRIES BUT UNLIKE ITS GERMAN RIVAL SWISS RE DIVERSIFIED IN RECENT YEARS AWAY FROM ITS TRADITIONAL FOCUS ON THE REINSURANCE MARKET WHERE INSURANCE COMPANIES PASS ON BIG RISKS TO SPECIALIZED PROFESSIONALS AS WELL AS SHARPLY INCREASING ITS DIRECT INSURANCE BUSINESS AROUND THE WORLD IT BECAME INVOLVED IN NONINSURANCE ACTIVITIES SOME OF WHICH PROVED TO BE COSTLY ERRORS THE COMPANY LOST 290 MILLION SWISS FRANCS 1906 MILLION ON ITS COMPUTER OPERATIONS IT ALSO TRIPPED IN ITS INSURANCE BUSINESS INCURRING A LOSS OF 338 MILLION FRANCS WHEN FINANCIAL GUARANTEE POLICIES IT HAD SOLD IN GERMANY WENT SOUR IT HAS SINCE CLOSED THE GUARANTEE SUBSIDIARY THE SWITZERLAND GENERAL INSURANCE CO SELLING ITS PORTFOLIO AND AGENCY NETWORK TO ANOTHER COMPANY IN THE SWISS RE GROUP IT IS TRYING TO RECOUP SOME OF THE LOSSES THROUGH LITIGATION OTHER PARTS OF THE DIRECT INSURANCE BUSINESS WERE ALSO PROBLEMATIC SWISS PROSECUTORS ACTING ON A CRIMINAL COMPLAINT FILED BY THE COMPANY ARE INVESTIGATING ALLEGED FRAUD AND CORRUPTION BY A FORMER BOARD MEMBER WHO OVERSAW THE GROUP'S DIRECT INSURANCE OPERATIONS FOR ARNOLD W SAXER 57 YEARS OLD WHO BECAME CHIEF EXECUTIVE OFFICER TWO YEARS AGO THE PROBLEMS AFFLICTING SWISS RE ARE SYMPTOMS OF A DEEPER ILL AS THE COMPANY EXPANDED INTO A HOST OF NEW AREAS HE SAYS MANAGEMENT WAS OVERSTRETCHED STRATEGIC GOALS BECAME CLOUDED AND INTERNAL SCRUTINY WAS DEFICIENT SOME ACTIVITIES GOT OUT OF CONTROL HE SAYS MR SAXER HAS MASTERMINDED A RESTRUCTURING PLAN THAT HE HOPES WILL SET THINGS RIGHT BY STREAMLINING THE DIRECT INSURANCE OPERATIONS BEEFING UP CONTROLS AND SPLITTING THE CORE REINSURANCE BUSINESS OFF FROM MANAGEMENT OF THE SWISS RE GROUP HE HAS ALSO ORDERED A REVIEW OF ALL OPERATIONS WITH A VIEW TO BOOSTING EFFICIENCY AND PROFITS MR SAXER ALSO IS TRYING TO LOOSEN UP SWISS RE'S STUFFY CORPORATE CULTURE TWO GERMAN NATIONALS HAVE BEEN BROUGHT INTO THE FIVEMAN GROUP MANAGEMENT EXECUTIVE TEAM A BIG DEPARTURE FOR A COMPANY THAT LONG CLUNG TO ITS SWISS IDENTITY FINANCE IS GOING INTERNATIONAL TOO IN DECEMBER SWISS RE TAPPED INTERNATIONAL CAPITAL MARKETS FOR THE FIRST TIME RAISING 150 MILLION WITH AN ISSUE OF DEBENTURES WITH WARRANTS UNDERWRITTEN BY GOLDMAN SACHS INTERNATIONAL LTD THE ONCESECRETIVE COMPANY IS ALSO STARTING TO TAKE INVESTOR RELATIONS SERIOUSLY BRIEFING ANALYSTS ON A REGULAR BASIS AND PROMISING TO BRING ITS ACCOUNTING PRACTICES INTO LINE WITH EUROPEAN COMMUNITY STANDARDS BY THE END OF 1994 MR SAXER SAYS HE WOULD LIKE TO MAKE IT EASIER FOR FOREIGNERS TO BUY SWISS RE STOCK CURRENTLY LISTED ONLY IN SWITZERLAND THOUGH HE ACKNOWLEDGES THERE ARE STILL SWISS TECHNICAL OBSTACLES TO SUCH A MOVE AND HE INSISTS THAT SWISS RE'S FINANCIAL AND LEGAL PROBLEMS ARE BEHIND US IF NOT 100 THEN 95 SIMON RUDOLPH OF MORGAN STANLEY IN LONDON SAYS THE WIND OF CHANGE BROUGHT ABOUT BY MR SAXER SHOULD HELP BOOST PROFITS ESPECIALLY IN THE MEDIUM TERM SWISS RE REPORTED A CONSOLIDATED PROFIT OF 266 MILLION FRANCS FOR 1991 ON GROSS PREMIUMS OF 1745 BILLION FRANCS MR RUDOLPH PREDICTS THE COMPANY WILL REPORT EARNINGS OF 280 MILLION FRANCS FOR 1992 AND 310 MILLION FRANCS FOR 1993 THE COMPANY PUBLISHES RESULTS JUST ONCE A YEAR IN THE FALL OF THE FOLLOWING YEAR IN THE SHORT TERM SWISS RE'S RESULTS WILL DEPEND ON THE INCIDENCE OF HURRICANES EARTHQUAKES AND OTHER NATURAL DISASTERS AND ON WHETHER PREMIUM RATES FOR SUCH RISKS CONTINUE TO RISE A STRING OF NATURAL CATASTROPHES IN THE PAST FEW YEARS HAS BUFFETED REINSURERS WORLDWIDE CAUSING MANY TO REEVALUATE THEIR PORTFOLIOS AND DEMAND MUCH HIGHER PREMIUMS SWISS RE ESTIMATES IT WILL HAVE TO PAY CLAIMS OF 300 MILLION FRANCS ON HURRICANE ANDREW ALONE WALTER B KIELHOLZ A BOARD MEMBER OF THE COMPANY'S REINSURANCE ARM SAYS WE ARE VERY CAUTIOUS ABOUT THE EXTENT OF THE CATASTROPHE BUSINESS WE WOULD ACCEPT WE DON'T WANT TO INCREASE OUR EXPOSURE EVEN WITH INCREASED RATES THE GROUP ALSO FACES OTHER PROBLEMS AS IT STARTS TO IMPLEMENT THE RESTRUCTURING PLANS ALTHOUGH MANAGEMENT HAS BEEN DIVIDED ALONG THE NEW LINES ENVISAGED BY MR SAXER AND STARTED WORK JAN 1 THE GROUP'S LEGAL AND FINANCIAL STRUCTURE DOESN'T YET FULLY REFLECT THAT SHIFT MR SAXER SAYS HE STILL WANTS TO SIMPLIFY THE GROUP'S CAPITAL AND CORPORATE STRUCTURE THOUGH HE WON'T COMMIT TO A TIMETABLE SOME OF HIS PLANS ARE ALREADY STARTING TO BE FELT IN GERMANY THE CENTER OF ITS DIRECT INSURANCE OPERATIONS IN SEPTEMBER SWISS RE ANNOUNCED PLANS TO FOLD ITS TWO MAIN INSURANCE HOLDINGS IN GERMANY INTO A SINGLE ENTITY THE PROCESS WILL TAKE ABOUT THREE YEARS AND INVOLVES INTEGRATING THE SALES FORCE AND BACK OFFICE OPERATIONS MR SAXER SAID SWISS RE EXPECTS RESTRUCTURING COSTS TO TOTAL ONLY 50 MILLION MARKS 305 MILLION THE COMPANY SAYS THE PAYBACK WILL COME IN LESS THAN ONE YEAR WITH ANNUAL COST SAVINGS OF 50 MILLION MARKS IN THE US WHERE SWISS RE DOES THE BIGGEST SHARE OF ITS REINSURANCE BUSINESS COMPANY OFFICIALS SAY THEY ARE LOOKING AT TWO DIRECT INSURANCE UNITS THAT DON'T NECESSARILY FIT INTO THEIR CORE US BUSINESS ONE IS THE PARTIALLY OWNED FIDELITY & DEPOSIT CO OF MARYLAND WHICH OFFICIALS SAY IS FAIRLY SUCCESSFUL THE OTHER NORTH AMERICAN SPECIALTY INSURANCE CO IN MANCHESTER NH IS A MORE RECENT ACQUISITION NO DECISION ON THE FATE OF EITHER COMPANY HAS BEEN TAKEN AND MR SAXER SAYS THE REVIEW OF US OPERATIONS COULD TAKE TWO MORE YEARS 9302080121 930208 WHO'S NEWS MARTIN MARIETTA CORP MARTIN MARIETTA CORP BETHESDA MD R JAMES WOOLSEY RESIGNED AS A DIRECTOR OF THIS AEROSPACE CONCERN TO BECOME DIRECTOR OF THE US CENTRAL INTELLIGENCE AGENCY IN THE CLINTON ADMINISTRATION HIS DEPARTURE REDUCES THE BOARD'S SIZE TO 14 9302080120 930208 GM PLANS A PUBLIC RELATIONS BATTLE AFTER PUNITIVE AWARD IN PICKUP TRIAL BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AFTER A STUNNING LOSS LAST WEEK IN AN ATLANTA COURT GENERAL MOTORS CORP WILL LAUNCH AN AGGRESSIVE COUNTERATTACK TODAY AGAINST CHARGES THAT IT KNOWINGLY SOLD PICKUP TRUCKS WITH DANGEROUS FUEL TANKS GM HAS CALLED A NEWS CONFERENCE TODAY TO ARGUE THAT ITS 19731987 LARGE PICKUP TRUCKS HAVE BEEN UNFAIRLY PORTRAYED AS UNSAFE BY THE MEDIA AND BY TRIAL LAWYERS IT SAYS ARE POSING AS SAFETY ADVOCATES THE MOVE FOLLOWS A JURY FINDING THURSDAY THAT GM WAS NEGLIGENT IN THE DESIGN OF ITS PICKUP TRUCKS THE JURY AWARDED 1052 MILLION TO THE FAMILY OF A BOY WHO DIED IN ONE OF THE TRUCKS ONE TARGET OF GM'S COUNTERATTACK IS NBC'S DATELINE NEWS PROGRAM TODAY GM WILL ANNOUNCE THAT IT IS TAKING LEGAL ACTION AGAINST NBC AND THE INSTITUTE FOR SAFETY ANALYSIS AN INDIANA FIRM THAT CONDUCTED CRASH TESTS FOR THE NETWORK GM HAS ALREADY WON A TEMPORARY RESTRAINING ORDER PREVENTING THE INSTITUTE FROM DESTROYING TRUCKS IT TESTED THE AUTO MAKER SAID IT WILL NOW TRY TO PROVE THAT THE TESTS WERE RIGGED DATELINE AIRED A REPORT IN NOVEMBER ON CHARGES THAT 19731987 GM PICKUPS WERE PRONE TO CATCHING FIRE IN SIDEIMPACT COLLISIONS WHICH GM CALLED GROSSLY UNFAIR MISLEADING AND IRRESPONSIBLE NBC SAYS IT STANDS BY ITS REPORT ADDITIONALLY GM WILL PRESENT NEW DATA TO BOLSTER ITS POSITION THAT ITS TRUCKS ARE SAFE AND IT WILL TRY TO TAR SOME OF THOSE WHO HAVE CRITICIZED THE PICKUPS IN THE NAME OF PUBLIC SAFETY AS SELFINTERESTED TRIAL LAWYERS IT'S ONE THING TO HAVE A PROBLEM ADMIT YOU HAVE A PROBLEM AND FIX IT ITS ANOTHER THING TO BE FALSELY ACCUSED A GM SPOKESMAN SAYS GM FACES AN IMAGE CRISIS AFTER THE ATLANTA JURY VERDICT THE SIZE OF THE AWARD PROMPTED SOME ANALYSTS TO PREDICT THAT GM WOULD BE FORCED TO BACK DOWN AND RECALL THE 47 MILLION VEHICLES STILL ON THE ROAD IT IS UNCLEAR IF GM'S DECISION TO GO ON THE OFFENSIVE WILL BLUNT THE EMOTIONAL IMPACT OF LAST WEEK'S VERDICT FOLLOWING THE TRIAL NATIONAL TELEVISION NETWORKS BROADCAST A TEARY THOMAS MOSELEY BLAMING GM'S PICKUPS FOR THE DEATH OF HIS SON SHANNON IN A FIERY GM PICKUP CRASH THE MOSELEYS TOLD THEIR STORY AGAIN THE NEXT MORNING ON THE TODAY SHOW AND JURORS PUBLICLY CALLED FOR A RECALL SOME GM DEALERS WORRY THAT THE COMPANY WILL PROLONG DEBATE OVER THE ISSUE WITHOUT CONVINCING CONSUMERS TO ACCEPT ITS POINT OF VIEW BUT GM EVIDENTLY WANTS TO SIGNAL FEDERAL REGULATORS WHO ARE EVALUATING A POSSIBLE RECALL AND TRIAL LAWYERS WHO ARE CONSIDERING FILING NEW SUITS AGAINST THE COMPANY THAT IT HAS THE WILL AND THE RESOURCES TO FIGHT GM'S STRATEGY ECHOES THE ALLOUT DEFENSE THE COMPANY MADE AGAINST GOVERNMENT CHARGES THAT CERTAIN EARLY1980S MODELS CALLED THE XCARS HAD DEFECTIVE BRAKES A KEY PLAYER IN THE SUCCESSFUL XCAR DEFENSE WAS HARRY J PEARCE NOW GM'S EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL MR PEARCE IS TAKING THE LEAD NOW IN THE DEFENSE OF GM'S PICKUPS THIS IS RUN BY HARRY PEARCE SAID GM PRESIDENT JOHN F SMITH JR ON FRIDAY WE DON'T BELIEVE THERE IS A SAFETY DEFECT HE ADDED MR PEARCE A PRODUCTLIABILITY DEFENSE LAWYER FROM BISMARCK ND IGNORED CRITICISM AND NEGATIVE PUBLICITY AND STAUNCHLY DEFENDED THE AUTO MAKER DURING YEARS OF COMPLEX LITIGATION OVER ITS XCARS GM'S DECISION TO FIGHT THE ATTACK ON ITS TRUCKS ALSO HIGHLIGHTS THE THREAT THE PUBLICITY SURROUNDING THE ATLANTA CASE POSES TO ONE OF GM'S HIGHEST PROFIT PRODUCT LINES ALTHOUGH GM NO LONGER BUILDS BIG PICKUPS WITH SIDESADDLE GAS TANKS THE COMPANY CAN ILL AFFORD DAMAGE TO ITS REPUTATION AMONG TRUCK BUYERS AT A TIME WHEN IT IS STRUGGLING TO REVERSE THREE STRAIGHT YEARS OF RED INK GM ALREADY IS PLAYING TOUGH WITH NBC SEEKING A COURT ORDER IN INDIANAPOLIS TO GAIN ACCESS TO THE GMC TRUCKS USED IN CRASH TESTS CONDUCTED FOR THE NETWORK BY THE INSTITUTE FOR SAFETY ANALYSIS AS FIRST REPORTED BY THE INDIANAPOLIS STAR THE INSTITUTE IS REFUSING TO TURN OVER ANYTHING PERTAINING TO THE TESTS THE INSTITUTE IS MAINTAINING THAT ITS HEAD BRUCE E ENZ WAS WORKING FOR NBC AS A NEWSGATHERER AND IS PROTECTED BY THE FIRST AMENDMENT MR ENZ WHOSE COMPANY SPECIALIZES IN PROVIDING EXPERT TESTIMONY IN AUTOMOBILE INJURY SUITS COULDN'T BE REACHED FRIDAY BUT FIRST AMENDMENT SPECIALISTS AGREED THAT EVEN IF A REPORTER'S PRIVILEGE EXTENDED TO THE INSTITUTE THE COMPANY STILL COULD BE COMPELLED TO TURN OVER THE TEST MATERIALS GM'S TOUGH STRATEGY IS CONTROVERSIAL LEE A IACOCCA BEFORE HE STEPPED DOWN AS CHAIRMAN OF CHRYSLER CORP SAID GM SHOULD ACKNOWLEDGE THE PROBLEM AND MOVE QUICKLY TO PUT THE ISSUE BEHIND IT CLARENCE DITLOW HEAD OF THE CENTER FOR AUTO SAFETY AN ADVOCACY GROUP IN WASHINGTON CALLED GM'S PUBLIC RELATIONS STRATEGY CORPORATE SUICIDE BUT SOME OF THE CAR MAKER'S CRITICS AREN'T SURPRISED BY THE APPROACH IN MOST OF THE CASES AUTO MAKERS JUST STONEWALL THEY LEAVE THE CARS ON THE ROAD AND THEY JUST KEEP KILLING PEOPLE SAYS DAVID L PERRY A CORPUS CHRISTI TEXAS ATTORNEY WHO WON A SETTLEMENT IN A GM PICKUP CASE LAST SUMMER GM SAYS ITS TRUCKS ARE AS SAFE AS THE COMPETITION'S TO PRESSURE GM TO RECALL THE TRUCKS MR PERRY HAS FORMED A GROUP OF SAFETY ATTORNEYS THAT IS AIRING TELEVISION COMMERCIALS IN CORPUS CHRISTI RECOUNTING THE GRISLY DEATH OF FRANK ZELENUK MR PERRY'S CLIENT IN A GM PICKUP GM CHARGES THAT THE ADS ARE LITTLE MORE THAN ADVERTISEMENTS FOR MR PERRY MR PERRY SAYS THE SPOTS ARE IN NO WAY INTENDED TO DRUM UP CLIENTS SAFETY ADVOCATES RECOGNIZE THAT TIME IS ON GM'S SIDE ORIGINALLY THERE WERE MORE THAN NINE MILLION OF THE 19731987 PICKUPS BUILT TODAY ONLY 47 MILLION OF THE TRUCKS REMAIN ON THE ROAD AND SOME OF THOSE ARE 20 YEARS OLD WITH EACH YEAR OF DEBATE THE NUMBER OF TRUCKS ON THE ROAD WILL BE REDUCED THAT'S ONE REASON WHY CLARENCE DITLOW OF THE CENTER FOR AUTO SAFETY IS PLANNING HIS OWN NEWS CONFERENCE TOMORROW TO ANNOUNCE THAT A COALITION OF CONSUMER GROUPS WILL CAMPAIGN FOR A RECALL OF THE TRUCKS FOR ME MR DITLOW SAYS THE ONLY QUESTION IS HOW LONG WILL IT BE BEFORE GM DOES THE RIGHT THING SAVE MONEY AND SAVE LIVES BY DOING A RECALL MILO GEYELIN IN NEW YORK AND JOSEPH B WHITE IN DETROIT CONTRIBUTED TO THIS ARTICLE 9302080119 930208 TECHNOLOGY & MEDICINE DRUG SOLD BY PFIZER MAY BE HAZARDOUS AFTER HEART ATTACK ISRAELI STUDY FINDS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL AN ISRAELI STUDY OF 1006 HEART ATTACK PATIENTS FOUND THAT A WIDELY USED HEART DRUG NIFEDIPINE WAS INEFFECTIVE AND PERHAPS HAZARDOUS WHEN GIVEN TO PATIENTS IMMEDIATELY AFTER A HEART ATTACK NIFEDIPINE IS BEST KNOWN BY PFIZER INC'S TRADE NAME PROCARDIA THOUGH IT ALSO IS SOLD BY MILES INC UNDER THE NAME ADALAT MILES IS THE US SUBSIDIARY OF BAYER AG OF GERMANY THE ISRAELI STUDY CONCERNS ONE OF THE LESSER AND UNAPPROVED USES OF NIFEDIPINE BUT ANY RESEARCH THAT CASTS A SHADOW OVER THE DRUG COULD BE OF CONCERN TO PFIZER BECAUSE THE DRUG'S 11 BILLION IN SALES LAST YEAR ACCOUNTED FOR A QUARTER OF PFIZER'S PHARMACEUTICAL SALES THE IMPACT OF THE STUDY MAY ALSO SPILL OVER TO OTHER DRUGS SIMILAR TO NIFEDIPINE A GROUP KNOWN AS CALCIUM CHANNEL BLOCKERS THIS STUDY SHOULD COMPEL PHYSICIANS TO LOOK AT THEIR CURRENT TREATMENT REGIMENS FOLLOWING A PATIENT'S HEART ATTACK SAID PRAKASH C DEEDWANIA PROFESSOR OF MEDICINE AT THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO SCHOOL OF MEDICINE THE MAIN MARKETS FOR NIFEDIPINE ARE PATIENTS WITH HIGH BLOOD PRESSURE AND HEART PATIENTS WHO SUFFER CHEST PAINS KNOWN AS ANGINA THE ISRAELI STUDY HOW EVER INVOLVED GIVING NIFEDIPINE TO PATIENTS WHO HAD JUST HAD A HEART ATTACK IN HOPES OF PREVENTING A SECOND HEART ATTACK BOTH PFIZER AND MILES SAID NIFEDIPINE ISN'T APPROVED FOR USE AS A TREATMENT TO PREVENT HEARTATTACK RECURRENCE PETER FEIG MILES DEPUTY DIRECTOR FOR CARDIOVASCULAR RESEARCH ADDED THAT SUCH TREATMENT ISN'T WIDELY PRACTICED BUT DR DEEDWANIA SAID STUDIES HAVE SHOWN THAT AFTER A HEART ATTACK AS MANY AS HALF OF ALL PATIENTS ARE TAKING CALCIUM CHANNEL BLOCKERS THAT'S TRUE EVEN THOUGH SMALLER STUDIES HAVE INDICATED THAT NIFEDIPINE ISN'T BENEFICIAL AFTER A HEART ATTACK DR DEEDWANIA SAID PHYSICIANS CONTINUE TO USE IT IN ALARMINGLY HIGH PERCENTAGES HE SAID AN ESTIMATED 15 MILLION AMERICAN SUFFER HEART ATTACKS EACH YEAR ABOUT 12 MILLION OF WHOM GET TO THE HOSPITAL ALIVE ACCORDING TO THE AMERICAN HEART ASSOCIATION PHYSICIANS MAY TAKE THE REPORT PUBLISHED IN TODAY'S ISSUE OF THE ARCHIVES OF INTERNAL MEDICINE MORE SERIOUSLY BECAUSE THE NUMBER OF PATIENTS STUDIED 1006 MEN AND WOMEN IS MUCH LARGER THAN IN PREVIOUS RESEARCH SAID DR DEEDWANIA WHO COWROTE AN EDITORIAL ACCOMPANYING THE STUDY THIS STUDY ALSO SHOWS MOST CLEARLY THE HARMFUL EFFECTS OF THE DRUG HE SAID IN THE STUDY RESEARCHERS LED BY URI GOLDBOURT OF ISRAEL'S SHEBA MEDICAL CENTER GAVE ABOUT HALF THE PATIENTS NIFEDIPINE THE OTHER HALF A PLACEBO SOON AFTER A HEART ATTACK IN THE CRITICAL FIRST SIX DAYS AFTER THEIR ATTACKS 78 OF THE PATIENTS GIVEN NIFEDIPINE DIED COMPARED WITH 55 OF THE PATIENTS WHO GOT A PLACEBO AFTER THE CRITICAL FIRST WEEK NIFEDIPINE HAD LITTLE EFFECT IN PREVENTING HEART ATTACKS IN BOTH GROUPS DURING THE FOLLOWING SIX MONTHS OTHER CALCIUM CHANNEL BLOCKERS SUCH AS VERAPAMIL AND DILTIAZEM HAVE BEEN SHOWN TO REDUCE THE RATE OF FURTHER HEART ATTACKS IN SELECTED HEART ATTACK PATIENTS ACCORDING TO DR DEEDWANIA BUT THE DRUGS OF CHOICE FOLLOWING A HEART ATTACK ARE ASPIRIN AND BETA BLOCKERS WHICH ALSO CONTROL HIGH BLOOD PRESSURE AND ANGINA DR DEEDWANIA SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY PFIZER SHARES FELL 1125 TO CLOSE AT 6325 9302080118 930208 SOUTH KOREAN INDEXES OF ECONOMIC ACTIVITY CLIMBED IN DECEMBER SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA'S MAJOR ECONOMIC INDICATORS SENT A SIGNAL THAT THE NATION'S ECONOMY IS GATHERING MOMENTUM FOR A TURNAROUND MARKED BY LOWER INVENTORIES AND EXPANDING FACILITY INVESTMENTS THE NATIONAL STATISTICAL OFFICE SAID IN A REPORT ON INDUSTRIAL ACTIVITY FOR DECEMBER THE STATISTICS OFFICE SAID THE LEADING INDEX ROSE BY 18 IN DECEMBER FROM NOVEMBER THE REPORT SAID THE GAIN FORESHADOWS INCREASED ECONOMIC ACTIVITY IN TWO OR THREE MONTHS THE DECEMBER RISE WAS THE SHARPEST MONTHLY GAIN IN 1992 A SWIFT AND RAPID RECOVERY IN THE ECONOMY IS NOT LIKELY BUT WE BELIEVE THAT THE ECONOMY IS CONSOLIDATING ITS BASE TO TURN AROUND AFTER REACHING ITS BOTTOM IN THE FIRST QUARTER OF THIS YEAR KIM KYONGJOONG DIRECTOR GENERAL AT THE OFFICE SAID INDUSTRIAL OUTPUT ROSE 09 IN DECEMBER FROM NOVEMBER BUT IT WAS VIRTUALLY UNCHANGED FROM DECEMBER 1991 LARGELY BECAUSE OF THE RELATIVELY HIGH ANNUAL INCREASE IN DECEMBER 1991 SHIPMENTS ROSE 36 FROM A YEAR EARLIER WELL ABOVE NOVEMBER'S EXPANSION OF 07 SHIPMENTS FOR EXPORTS SHOWED A 42 RISE FROM A YEAR EARLIER WHILE THOSE FOR DOMESTIC USE CLIMBED 32 PRODUCERS' INVENTORIES EXPANDED 43 FROM A YEAR EARLIER SHOWING A CONTINUED SLOWER PACE SINCE OCTOBER INVENTORIES FELL 18 IN DECEMBER FROM NOVEMBER MANUFACTURING PLANTS WERE OPERATED AT 734 OF CAPACITY A RISE FROM 728 IN NOVEMBER 9302080117 930208 FINANCING BUSINESS COLLINS INDUSTRIES INC COLLINS INDUSTRIES INC HUTCHINSON KAN SAID IT SOLD 20 MILLION OF ITS 875 SENIOR UNSECURED NOTES DUE FEB 1 2002 PROCEEDS FROM THE SALE WERE USED TO RETIRE BANK DEBT AND AN INDUSTRIAL REVENUE BOND ISSUE THE AMBULANCE MANUFACTURER ALSO SAID IT HAS OBTAINED A 7 MILLION UNSECURED LINE OF CREDIT FROM A BANK 9302080115 930208 TWO JAPANESE BANKS EXPAND IN TAIWAN FOLLOWERS ARE LIKELY HONG KONG TWO JAPANESE BANKS NO LONGER FEARING REPRISAL FROM CHINA ARE EXPANDING THEIR PRESENCE IN TAIWAN AND OTHER JAPANESE BANKS ARE LIKELY TO FOLLOW ACCORDING TO AN OFFICIAL OF TAIWAN'S MINISTRY OF FINANCE BANK OF TOKYO LTD IS CLOSE TO OBTAINING OFFICIAL PERMISSION TO UPGRADE ITS TAIWAN REPRESENTATIVE OFFICE TO A BRANCH MAKING IT THE FIRST JAPANESE BANK TO OPEN A BRANCH ON THE ISLAND IN MORE THAN THREE DECADES LAST MONTH TOKAI BANK LTD RECEIVED APPROVAL FROM TAIWAN AUTHORITIES TO OPEN A REPRESENTATIVE OFFICE THE PAPERWORK IS COMPLETED FOR APPROVING BANK OF TOKYO'S APPLICATION SAID THE MINISTRY OFFICIAL ALL IT NOW TAKES IS THE SIGNATURE OF THE MINISTER OF FINANCE BECAUSE OF BUREAUCRATIC DELAYS HOWEVER FORMAL APPROVAL ISN'T LIKELY TO COME FOR AT LEAST A COUPLE OF MONTHS THE OFFICIAL ADDED EXECUTIVES OF BOTH JAPANESE BANKS DECLINED TO COMMENT ON THEIR MOVES IN TAIWAN BEIJING WHICH CLAIMS SOVEREIGNTY OVER TAIWAN HAD LONG TRIED TO BLOCK EFFORTS BY JAPANESE BANKS TO SET UP IN TAIWAN IN A BID TO ISOLATE THE ISLAND INTERNATIONALLY BUT CHINA'S RESPONSE TO THE TWO JAPANESE BANKS' MOVES IN TAIWAN HAS BEEN MUTED AN ENCOURAGING SIGN TO OTHER JAPANESE BANKS AS WELL AS WESTERN BANKS THAT THEY ALSO CAN ESTABLISH TIES TO TAIWAN WITHOUT JEOPARDIZING THEIR EXISTING RELATIONSHIPS WITH CHINA SINCE THEN CHINA HAS EASED ITS STANCE IN PART MOLLIFIED WHEN JAPAN BECAME ONE OF THE FIRST MAJOR INDUSTRIALIZED COUNTRIES TO LIFT A BAN ON OFFICIAL AID TO CHINA THAT WAS IMPOSED AFTER THE TIANANMEN SQUARE KILLINGS IN JUNE 1989 SIGNS THAT CHINA WAS SOFTENING CAME WHEN BANK OF TOKYO RECEIVED PERMISSION FROM CHINA TO OPEN A BRANCH IN SHANGHAI IN DECEMBER 1991 AND IN DALIAN LAST SEPTEMBER A MONTH AFTER IT SUBMITTED ITS APPLICATION TO TAIWAN TO UPGRADE ITS REPRESENTATIVE OFFICE THERE 9302080114 930205 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 9302080113 930208 KRUPP HOESCH PLAN TO CLOSE BLAST OVEN AND CUT BACK SHIFTS SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMAN STEELMAKERS KRUPP STAHL AG AND HOESCH STAHL AG SAID THEY WILL CLOSE A BLAST OVEN IN DORTMUND FOR FIVE MONTHS BEGINNING MARCH 1 AND PUT 600 WORKERS ON SHORTENED SHIFTS SHOULD THE WEAK DEMAND FOR STEEL CONTINUE THE TWO COMPANIES ALSO PLAN TO CLOSE A BLAST OVEN IN RHEINHAUSEN FOR THE FINAL FIVE MONTHS OF THE YEAR IT'S NOT YET KNOWN HOW MANY WORKERS WILL BE AFFECTED THE COMPANIES ALSO SAID THEY PLAN TO INCREASE PRICES FOR ROLLED STEEL BY DOUBLE DIGITS THEY WEREN'T MORE SPECIFIC NEITHER OVEN IS WORKING AT ITS FULL CAPACITY OF MORE THAN 100000 TONS AND THE COMPANIES HAVE DECIDED TO CONCENTRATE PRODUCTION IN ONE PLANT OVERALL OUTPUT WON'T BE AFFECTED KRUPP AND HOESCH ARE IN THE PROCESS OF MERGING THE DORTMUND OVEN IS OWNED BY HOESCH AND THE RHEINHAUSEN OVEN BY KRUPP 9302080112 930208 WORLD MARKETS FRANKFURT STOCKS SOAR ON GERMANY'S RATE CUTS TOKYO PRICES CLIMB SPURRED BY US STRENGTH A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT STOCKS SOARED 24 FRIDAY IN REACTION TO GERMAN INTERESTRATE CUTS ANNOUNCED THE PREVIOUS DAY AFTER THE MARKET HAD CLOSED TOKYO SHARES SCORED BIG GAINS SPURRED BY WALL STREET'S STRENGTH LONDON EQUITIES ENDED MIXED WHILE MOST OTHER BIG EUROPEAN BOURSES RALLIED IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 3976 POINTS TO 164137 AFTER REACHING AN INTRADAY PEAK OF 164643 ALL THE DAX STOCKS ADVANCED THE BULL RUN PROPELLED THE AVERAGE UP 70 POINTS OR 45 FOR THE WEEK BUYING FRIDAY SNOWBALLED ON LAST WEEK'S CUT IN GERMAN LENDING RATES A SURPRISINGLY POSITIVE CONTRACT SETTLEMENT FOR THE NATION'S SECONDLARGEST LABOR UNION AND POSITIVE TECHNICAL FACTORS THE GERMAN BANKING SECTOR RALLIED POWERFULLY AFTER THE BUNDESBANK THE CENTRAL BANK EASED REQUIREMENTS FOR THE MINIMUM AMOUNT OF FUNDS THAT GERMANBASED BANKS MUST HOLD IN NONINTEREST ACCOUNTS AT THE BUNDESBANK A MOVE THAT FREES MORE CAPITAL FOR INTERESTEARNING PURPOSES MEANWHILE THE AGREEMENT LATE THURSDAY BY WESTERN GERMANY'S PUBLICSECTOR LABOR UNIONS TO A 3 PAY INCREASE FOR THIS YEAR WAS SMALLER THAN EXPECTED AND LOWER THAN THE INFLATION RATE ALLAYING FEARS THAT A BIG WAGE BOOST WOULD BALLOON THE GOVERNMENT'S ALREADY SWOLLEN REUNIFICATION COSTS AND DEFICITS THE FRANKFURT MARKET INCREASINGLY FOUND BUYERS EVEN AS THE DAX CLIMBED THROUGH 1600 AND THEN 1620 DESIGNATED BY SOME INVESTORS AS PREARRANGED PURCHASING LEVELS THE MARKET WAS EXPECTED TO MAINTAIN ITS MOMENTUM TODAY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 3140 POINTS THURSDAY ADVANCED 14227 TO 1733290 ON MONDAY THE NIKKEI INDEX FELL 983 POINTS TO CLOSE THE MORNING SESSION AT 1732307 IN A SWITCH FROM TOKYO'S RECENT DEALERDOMINATED ACTIVITY INDIVIDUALS AND INSTITUTIONS JOINED IN THE SESSION AFTER SENTIMENT BRIGHTENED ON NEW YORK STOCKS' SURGE LAST WEEK INVESTORS ALSO WARMED A BIT TO THE RATE CUT EARLIER LAST WEEK BY JAPAN'S CENTRAL BANK EVEN THOUGH THE REDUCTION HAD ALREADY BEEN BUILT INTO SHARE PRICES CROSS TRADING IN WHICH LARGE SHAREHOLDERS SIMULTANEOUSLY SELL AND BUY BACK SHARES FOR VALUATION PURPOSES WAS HEAVY THE NIKKEI ROSE MORE THAN 150 POINTS IN THE FIRST HALFHOUR OF TRADING AS COVERING OF SHORT OR OVERSOLD POSITIONS IN INDEX FUTURES LED STOCK MARKET PRICES HIGHER BUT THE UPWARD PUSH RAN OUT OF STEAM AND THE NIKKEI SPENT THE REST OF THE DAY BOBBING UP AND DOWN AT HIGHER LEVELS DESPITE JAPANESE GOVERNMENT OFFICIALS' INDICATIONS AND STATEMENTS TO THE CONTRARY INVESTORS' EXPECTATIONS WERE RUNNING HIGH THAT MORE MEASURES WOULD BE UNVEILED TO PUMP UP THE ANEMIC ECONOMY ALONG WITH THE CENTRAL BANK'S EASING OF MONETARY POLICY MOST PARTICIPANTS SAID THE NIKKEI SEEMED TO BE LODGED IN A RANGE BETWEEN 17000 AND 17500 THOUGH SOME SAW A CLIMB TO 18000 THIS WEEK IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 30 POINTS TO 28629 THE FT 30STOCK INDEX SLIPPED 03 POINT TO 22186 VOLUME SHRANK TO 6919 MILLION SHARES FROM 9486 MILLION SHARES IN THE PREVIOUS SESSION ACTIVITY WAS DEPRESSED FOLLOWING A HECTIC WEEK AND WALL STREET'S LACKLUSTER OPENING FRIDAY PRICES WERE FIRM AT THE START INFLUENCED BY NEW YORK'S RECORDSETTING PERFORMANCE THE PREVIOUS DAY BUT AFTER LAST WEEK'S VOLATILITY IN LONDON DEALERS CLOSED OUT POSITIONS AND INVESTORS EXAMINED THE ACTION OF THE PREVIOUS FOUR DAYS DURING WHICH THE 100STOCK INDEX SET A NEW CLOSING HIGH OF 28738 AND A RECORD INTRADAY PEAK OF 29001 AS NO MAJOR CORPORATE OR ECONOMIC DATA EMERGED DURING FRIDAY'S SESSION MANY PARTICIPANTS ALSO CAUTIOUSLY STAYED ON THE SIDELINES AHEAD OF THIS WEEK'S BRITISH INFLATION DATA AND A SPATE OF BLUECHIP CORPORATE EARNINGS REPORTS PARIS STOCKS SOARED 29 ON GERMANY'S RATE REDUCTIONS AND THE CAC 40 INDEX'S CLOSE OF 190818 WAS ITS FIRST FINISH ABOVE 1900 SINCE LAST JUNE 30 STOCKS SENSITIVE TO INTEREST RATES SUCH AS FINANCIAL AND CONSTRUCTION ISSUES CHALKED UP BIG INCREASES AMID EXTREMELY HEAVY VOLUME AMONG ASIAN AND PACIFIC EXCHANGES SYDNEY SHARE PRICES ROSE LED BY A RALLY IN RESOURCE STOCKS THAT WAS TRIGGERED BY A FALL IN THE AUSTRALIAN DOLLAR BUT SYDNEY INVESTORS WEREN'T ENTHUSIASTIC ABOUT EMBRACING THE GLOBAL EQUITY MARKETS' GAINS AND BUYING WAS BRAKED BY POLITICAL UNCERTAINTY AHEAD OF AUSTRALIA'S NATIONAL ELECTION SINGAPORE STOCKS FINISHED MIXED AS PROFITTAKING CONTINUED TO KNOCK BLUE CHIPS DOWN FOLLOWING GAINS EARLIER LAST WEEK HONG KONG SHARES WEREN'T ABLE TO SUSTAIN EARLY GAINS AND FINISHED LOWER PRESSURED BY FUTURESLED SELLING TAIPEI SHARES RALLIED FOR A SIXTH CONSECUTIVE SESSION BUT SEOUL STOCKS' STRING OF THREE WINNING SESSIONS ENDED AS PRICES TUMBLED YANKED DOWN BY A SPREE OF SELLING LARGECAPITALIZATION ISSUES 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 9302080111 930208 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT TELECOMMUNICATIONS INC A 550 MILLION TWOPART ISSUE OF SECURITIES WAS PRICED LATE THURSDAY THROUGH DEALERS LED BY FIRST BOSTON CORP THE FIRST PART CONSISTING OF 300 MILLION OF SENIOR NOTES WAS PRICED WITH A 7 3/8 COUPON AT 99755 TO YIELD 742 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 145 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE SECOND PART CONSISTING OF 250 MILLION OF SENIOR DEBENTURES WAS PRICED WITH AN 8 3/4 COUPON AT 98538 TO YIELD 889 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 173 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND BOTH PARTS ARE RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP CHEMICAL BANKING CORP 300 MILLION OF NOTES DUE FEB 15 1995 WAS PRICED INITIALLY AT PAR TO FLOAT QUARTERLY AT A SPREAD OF 30 BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE LIBOR THE NONCALLABLE ISSUE PAYS INTEREST QUARTERLY RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO AMOCO CANADA PETROLEUM CO 300 MILLION OF DEBENTURES DUE FEB 15 2005 WERE PRICED WITH A 6 3/4 COUPON AT 99642 TO YIELD 6794 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AMOCO CANADA IS A UNIT OF AMOCO CORP COMDISCO INC 2683 MILLION OF COMPUTER LEASE ASSETBACKED CERTIFICATES COMDISCO RECEIVABLES TRUST WAS PRICED IN TWO PARTS BY UNDERWRITERS LED BY SALOMON BROTHERS INC AN 83 MILLION ISSUE OF CLASS A1 CERTIFICATES WAS PRICED AT AN INITIAL COUPON OF 320 AT PAR THE CERTIFICATES RESET AND PAY MONTHLY AT A PRICE THAT FLOATS 1/32 ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE LIBOR A 185 MILLION CLASS OF A2 CERTIFICATES WAS PRICED AT AN INITIAL COUPON OF 345 AT PAR THE CERTIFICATES RESET AND FLOAT 29 BASIS POINTS ABOVE ONEMONTH LIBOR THE A1 CERTIFICATES WITH AN AVERAGE LIFE OF 046 YEAR AND A STATED FINAL MATURITY OF FEB 15 1994 WERE RATED PRIME1PLUS BY MOODY'S A1 BY S&P AND D1PLUS BY DUFF & PHELPS CO THE A2 CERTIFICATES WITH AN AVERAGE LIFE OF 18 YEARS AND A STATED FINAL MATURITY OF FEB 15 1998 WERE RATED TRIPLEA BY MOODY'S S&P AND DUFF & PHELPS PITTSBURGH NATIONAL BANK 250 MILLION OF BANK NOTES DUE JULY 15 1994 WERE PRICED AT PAR TO YIELD 385 INITIALLY THE NONCALLABLE ISSUE WAS PRICED INITIALLY AT A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE TREASURYS IT WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE ISSUE IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP PITTSBURGH NATIONAL BANK IS A UNIT OF PNC FINANCIAL CORP FIRST UNION CORP 150 MILLION OF SUBORDINATED NOTES DUE FEB 15 2003 WAS PRICED WITH A 7 1/4 COUPON AT 99691 TO YIELD 7294 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 89 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BLOCKBUSTER ENTERTAINMENT CORP 150 MILLION OF SENIOR NOTES DUE FEB 15 1998 WAS PRICED WITH A 6 5/8 COUPON AT 9990 TO YIELD 6649 118 BASIS POINTS ABOVE THE FIVEYEAR TREASURY NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INGERSOLLRAND CO 100 MILLION OF NOTES DUE FEB 1 2003 WAS PRICED WITH A 6 7/8 COUPON AT 9948 TO YIELD 6948 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE THE CURRENT TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC WORLD SAVINGS & LOAN ASSOCIATION 100 MILLION OF MEDIUMTERM NOTES DUE FEB 15 1996 WAS PRICED WITH A 5 1/4 COUPON AT PAR TO YIELD 525 A 55BASISPOINT SPREAD ABOVE THE THREEYEAR TREASURY NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CATELLUS DEVELOPMENT CORP THREE MILLION SERIES A CUMULATIVE CONVERTIBLE PREFERRED SHARES WERE OFFERED AT 50 A SHARE THE COMPANY SAID 1222350 SHARES WOULD BE PURCHASED BY BAY AREA REAL ESTATE INVESTMENT ASSOCIATES LP WHILE THE REMAINING 1777650 SHARES ARE BEING OFFERED TO THE PUBLIC MORGAN STANLEY & CO IS LEAD MANAGER OF THE OFFERING AND MERRILL LYNCH & CO THE COMANAGER MOLECULAR DYNAMICS INC AN INITIAL OFFERING OF 2132374 COMMON SHARES WAS PRICED AT 11 A SHARE THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST INC THE COMPANY IS SELLING 15 MILLION OF THE SHARES AND CERTAIN STOCKHOLDERS ARE SELLING THE REMAINING 632374 ACCORDING TO THE FILING FEDERAL NATIONAL MORTGAGE ASSOCIATION 7335 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199328 IS BACKED BY FANNIE MAE 15YEAR 7 1/2 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199326 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES GOLD 1479 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES FEDERAL HOME LOAN BANKS 100 MILLION OF STEPUP COUPON NOTES WITH A FINAL MATURITY OF FEB 26 1996 WAS PRICED AT PAR TO YIELD 4 THE ISSUE WAS PRICED AT A SPREAD OF 64 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE'S COUPON STEPSUP OR INCREASES TO 525 ON FEB 26 1994 THE NOTES ARE NONCALLABLE FOR ONE YEAR AFTER WHICH THE ISSUER CAN CALL THE NOTES AFTER GIVING NOTEHOLDERS 30 DAYS' NOTICE SALOMON BROTHERS INC WILL LEAD MANAGE THE DEAL BANQUE NATIONALE DE PARIS FRANCE 100 MILLION OF SENIOR COLLARED FLOATING RATE NOTES DUE FEB26 2003 AT AN ISSUE PRICE OF PAR VIA KIDDER PEABODY SECURITIES LTD COUPON TO FLOAT AT A MARGIN OF SIXMONTH LONDON INTERBANK OFFERED RATE MINUS 1/4 POINT MINIMUM COUPON OF 5 AND A MAXIMUM COUPON OF 8 1/2 FEES 1/2 TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 100 MILLION OF SENIOR RANKING FLOATING RATE NOTES DUE MARCH 8 2003 AT PAR VIA UBS PHILLIPS & DREW LTD INTEREST RATE WILL FLOAT AT A MARGIN OF 1/4 POINT BELOW THE SIX MONTH LONDON INTERBANK OFFERED RATE MINIMUM COUPON OF 5 AND A MAXIMUM COUPON OF 8 FEES 1/2 EKSPORTFINANS NORWAY 100 MILLION OF SENIOR RANKING COLLARED FLOATING RATE NOTES DUE AUG 17 2003 AT PAR VIA CREDIT SUISSE FIRST BOSTON LTD COUPON TO FLOAT AT A MARGIN OF 1/4 POINT BELOW THE SIXMONTH LONDON INTERBANK OFFERED RATE MINIMUM COUPON OF 5 AND A MAXIMUM OF 8 3/8 FEES 1/2 ELECTRICITE DE FRANCE FRANCE 15 BILLION FRENCH FRANCS OF 8 1/4 EUROBONDS DUE DEC 4 1997 AT AN ISSUE PRICE OF 10140 VIA SOCIETE GENERALE YIELD 787 ANNUALLY A SPREAD OF 20 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT ISSUE WILL TRADE INTERCHANGEABLY WITH AN EXISTING 2 BILLION FRANC ISSUE FEES 1 1/4 GENERAL ELECTRIC CAPITAL CORP US 11 BILLION FRENCH FRANCS OF 7 7/8 EUROBONDS DUE MARCH 12 2001 AT AN ISSUE PRICE OF 101245 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 9957 TO YIELD 795 ANNUALLY A SPREAD OF 33 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT ISSUE FEES 2 ABBEY NATIONAL TREASURY SERVICES PLC UK 100 MILLION OF 8 1/8 EUROBONDS DUE FEB 26 2003 AT AN ISSUE PRICE OF 10085 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 9925 PARTLYPAID ISSUE 20 OF THE PRICE IS DUE ON FEB 26 AND THE REMAINING 80 ON FEB26 1994 GUARANTEED BY ABBEY NATIONAL PLC FEES 2 FINNISH EXPORT CREDIT LTD NORWAY 150 MILLION SWISS FRANCS OF 5 1/4 PUBLIC BONDS DUE MAR 12 1998 PRICED AT 102 1/8 VIA BANQUE PARIBAS SUISSE FEES 1 5/8 9302080110 930208 HIGHTECH STAKES FIVE ELECTRONICS GIANTS HOPE GENERAL MAGIC WILL TURN THE TRICK PARTNERS IN NOVEL SOFTWARE COULD REAP BIG REWARDS BY LINKING NEW DEVICES LIVING IN FEAR OF MICROSOFT BY G CHRISTIAN HILL AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MARC PORAT IS A SORT OF SILVERTONGUED DEVIL THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENERAL MAGIC INC IS CREDITED WITH CREATING A SPELLBINDING VISION OF THE ELECTRONICS FUTURE THAT CONVINCED FIVE INDUSTRY GIANTS WHO HAD FAILED TO GRAB A MAJOR SHARE OF PROFITS FROM THE DESKTOPCOMPUTER REVOLUTION THAT THEY MAY GET A SECOND CHANCE HIS DREAMYETTOCOMETRUE OF A VAST ARRAY OF ELECTRONIC NETWORKS ABLE TO FULFILL A USER'S EVERY WISH HAS RESULTED IN A MEETING HERE TODAY IN WHICH THE COMPANIES AMERICAN TELEPHONE & TELEGRAPH CO SONY CORP MOTOROLA INC PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO WILL DISCLOSE THEIR INVESTMENT IN GENERAL MAGIC A SECRETIVE THREEYEAROLD VENTURE STARTED BY APPLE COMPUTER INC THEY ARE HOPING THAT THEIR MEMBERSHIP WILL GIVE THEM AN OPPORTUNITY TO REAP BIG PROFITS FROM THE ADVENT OF SMALL DEVICES CALLED PERSONAL INTELLIGENT COMMUNICATORS OR PICS WHILE THE PIC WON'T BE THE NEXTGENERATION COMPUTER IT COULD BE THE NEXTGENERATION TELEPHONE IT IS A HANDHELD COMMUNICATOR EXPECTED TO BE PRODUCED IN MANY FORMS THAT WILL EVENTUALLY BE WIRELESS ACT AS A BEEPER FAX MACHINE CELLULAR PHONE APPOINTMENT BOOK NOTETAKER MESSAGE SENDER AND AS AN EASYTOUSE LINK WITH THOUSANDS OF DATABASES OFFERING INFORMATION RANGING FROM RESTAURANT MENUS TO FINANCIAL DATA AS ENVISIONED IT ALSO WILL EVENTUALLY TRANSMIT AND RECEIVE VIDEO SNIPPETS INFORMATION SPECIALISTS HAVE BEEN TALKING ABOUT THE COMING OF PICS FOR SEVERAL YEARS JOHN SCULLEY APPLE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CAUSED A LOT OF HOOPLA A YEAR AGO WITH THE ANNOUNCEMENT OF A COMMUNICATOR CALLED NEWTON SAYING IT WAS THE BEGINNING OF A 3 TRILLION INDUSTRY IT DIDN'T EXIST AND STILL HASN'T BEEN SHIPPED DITTO FOR AN AT&T COMMUNICATOR TO BE BUILT BY AN AFFILIATE EO INC SKEPTICS BELIEVE THESE DEVICES ARE ANOTHER FORM OF VAPORWARE INNOVATIONS THAT ARE PROMISED BUT NEVER DELIVERED THEY SEE NO COMPELLING USE FOR COMMUNICATORS AND BELIEVE THEY WILL BE TOO EXPENSIVE THEY ALSO NOTE THAT NEITHER MANY SERVICES NOR WIRELESS NETWORKS WILL BE AVAILABLE FOR YEARS THESE OBSTACLES ARE REAL BUT THEY DON'T MUCH FAZE GENERAL MAGIC'S PARTNERS IN VIDEOTAPED REMARKS PREPARED FOR TODAY'S NEWS CONFERENCE ROBERT ALLEN AT&T'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAYS MANY ALLIANCES MAKE PROMISES THAT CAN'T BE KEPT I THINK WE HAVE SOMETHING IN THE NEAR TERM THAT IS EXCITING IT'S REAL IT'S GOING TO BE VISIBLE TO CONSUMERS IT'S NOT A PROMISE BECAUSE WE REALLY ARE REDEFINING THE WAY COMMUNICATION IS DELIVERED IN THIS COUNTRY AND THROUGHOUT THE WORLD THIS MIGHT NOT BE JUST VAPORTALK GENERAL MAGIC IS DEVELOPING TWO NEW TECHNOLOGIES THAT COULD SPEED THE ARRIVAL OF PICS AS UBIQUITOUS CONSUMER PRODUCTS THE WORK WAS BEGUN AT APPLE BUT MR SCULLEY DECIDED GENERAL MAGIC SHOULD OPERATE AS AN INDEPENDENT ALLIANCE TO SECURE THE SUPPORT OF OTHER GIANT CONCERNS FOR THE FIRST TECHNOLOGY WHICH IS COMMUNICATIONS SOFTWARE CALLED TELESCRIPT TELESCRIPT ALLOWS ANY COMPUTER OR COMMUNICATOR TO TALK TO OTHER DEVICES ON ANY KIND OF NETWORK USING TELESCRIPT THE LACK OF SUCH A COMMON LANGUAGE STUNTED THE GROWTH OF THE DESKTOP MARKET FOR YEARS AND IS CONSIDERED VITAL TO THE SPREAD OF PICS EVERY GENERAL MAGIC INVESTOR AS WELL AS INTERNATIONAL BUSINESS MACHINES CORP AND OTHERS PLANS TO USE TELESCRIPT IBM MAY EVENTUALLY INVEST IN GENERAL MAGIC AS WELL GENERAL MAGIC HAS ALSO CREATED A KIND OF COMMAND SYSTEM CALLED MAGIC CAP THAT SIMPLIFIES FUNCTIONS FOR USERS AND IS GEARED TO FACILITATE COMMUNICATION AND FILTER INFORMATION TO FIT USERS' SPECIFIC NEEDS AMONG OTHER THINGS IT ALLOWS USERS TO CONSTRUCT THEIR OWN IMAGINARY TOWN ON A TOUCH SCREEN TOUCH THE POST OFFICE AND YOU CAN MAIL MESSAGES TOUCH THE LIBRARY TO RETRIEVE DATABASE INFORMATION OR EVEN A LIST OF BOOKS AT THE REAL BRICKANDGLASS LIBRARY TOUCH THE BANK TO MAKE DEPOSITS OR SEND CHECKS TOUCH RESTAURANTS TO MAKE RESERVATIONS OR GET THE SPECIALS OF THE DAY TOUCH A FRIEND'S HOME TO SEND PERSONAL MESSAGES A PIC EQUIPPED WITH TELESCRIPT AND MAGIC CAP IS BASED ON THE CONCEPT THAT ITS DESIGN CENTER IS THE HUMAN BEING NOT THE TECHNOLOGY SAYS MR PORAT EVENTUALLY HE SAYS USING IT WILL BE LIKE POSTING YOUR WANTS AND NEEDS ON A VARIETY OF ELECTRONIC NETWORKS WITH THE PIC SENDING OUT CODES OR AGENTS TO DATABASES THAT WILL GRAB OR WAIT FOR THE INFORMATION TO ANSWER THOSE WANTS AND NEEDS MUCH OF THIS POWER WON'T BE AVAILABLE FOR FIVE TO 10 YEARS UNTIL SERVICE PROVIDERS SUCH AS RESTAURANTS AND LIBRARIES DECIDE TO OFFER TELESCRIPT DATABASES IT'S GOING TO TAKE TIME A LOT OF TIME SAYS MR PORAT WE'RE DOING OUR PLANNING FOR TWO BIOLOGIC GENERATIONS THEN OF COURSE THERE ARE THE POSSIBLE RIVALS WHICH COULD LEAVE GENERAL MAGIC WITH THE EQUIVALENT OF BETA VIDEO MICROSOFT CORP WHICH IS ALREADY MOVING INTO THE PIC FIELD IS PARTICULARLY DREADED AS YOU CAN IMAGINE WE HAVE OUR OWN EFFORTS IN THIS AREA SAYS JONATHAN LAZARUS A MICROSOFT PRODUCT MANAGER MOREOVER TELESCRIPT HAS FALLEN BEHIND SCHEDULE MR SCULLEY SAYS AND MAY NOT BE WIDELY AVAILABLE UNTIL NEXT YEAR BUT MAGIC CAP IS EXPECTED TO BE SHIPPED BETWEEN THIS SUMMER AND FALL ALLOWING RELATIVELY CRUDE VERSIONS AND SERVICES AS EARLY AS THE END OF THE YEAR RUPERT MURDOCH'S NEWSCORP PLANS TO DELIVER NEWS STREET MAPS AND A SLEW OF OTHER CONSUMER INFORMATION OVER THESE DEVICES MEAD DATA CENTRAL IS FINISHING SOFTWARE TO MAKE ITS HUGE DATABASE OF PUBLICATIONS AVAILABLE FOR BROWSING ON PICS AND INTUIT A FASTGROWING PROVIDER OF BANKING AND ACCOUNTING SOFTWARE IS WORKING ON A PROGRAM TO TURN A PIC INTO AN ETERNALLY BALANCED CHECKBOOK INDEPENDENT OBSERVERS THINK GENERAL MAGIC IS ON TO SOMETHING BIG WITH TELESCRIPT BUT THEY CAUTION THAT IT WILL MEAN LITTLE UNLESS SERVICE PROVIDERS FLOCK TO IT RICHARD SHAFFER A NEWSLETTER EDITOR SAYS TELESCRIPT COULD BE A DIGITAL ESPERANTO INTERESTING IN THEORY BUT IT WON'T MAKE ANY DIFFERENCE IF NOBODY USES IT THE GENERAL MAGIC PARTNERS WHO HAVE SPENT MILLIONS OF DOLLARS FOR THEIR STAKES IN THE COMPANY ALREADY ARE SPENDING MANY MILLIONS TO BUILD NETWORKS OR DEVICES THAT WILL USE TELESCRIPT MAGIC CAP OR BOTH MOTOROLA AND THE TRIAD OF CONSUMER ELECTRONICS GIANTS SONY PHILIPS AND MATSUSHITA PLAN TO USE MAGIC CAP IN PRODUCTS THAT PROBABLY WILL BE SHIPPED WITHIN A YEAR APPLE AT&T AND PROBABLY IBM WILL TRY TO GET USERS TO ACCEPT THEIR OWN COMMAND SYSTEMS AT&T LAST YEAR QUIETLY LAUNCHED A NEW GROUP THAT IS CONSTRUCTING A NATIONWIDE TELESCRIPT MESSAGING SERVICE FROM THE GROUND UP IT WILL ACCEPT BOTH WIRED AND WIRELESS COMMUNICATIONS BECAUSE MOST INITIAL DEVICES WILL NEED TO USE TELEPHONE LINES BUT MOTOROLA IS BUILDING A WIRELESS TWOWAY COMMUNICATOR BASED ON A MICROCHIP NAMED DRAGON I APPLE MAY USE PARTS OF MAGIC CAP AND WILL PUT TELESCRIPT INSIDE ITS BESTSELLING POWERBOOK PORTABLE COMPUTERS AND INSIDE NEWTON MANY COMPUTER MAKERS ARE EXPECTED TO BUY BOTH TELESCRIPT AND MAGIC CAP IF THEY BECOME POPULAR BECAUSE OF THEIR INTELLIGENT MESSAGING ABILITY ALONE THE FIRST PICS WILL BE VERY COMPELLING OFFERINGS SAYS WILLIAM FALLON AT&T'S MARKETING DIRECTOR FOR CONSUMER MESSAGING THE GENERAL MAGIC PARTNERS ARE MOTIVATED BY SOMETHING EVEN MORE POWERFUL THAN THE TECHNOLOGY THE LURE OF POTENTIALLY BILLIONS OF DOLLARS OF NEW REVENUE AT&T FOR INSTANCE EXPECTS AN ENORMOUS VOLUME OF ELECTRONIC MESSAGES OVER ITS TELESCRIPTBASED NETWORK LINKING MILLIONS OF PICS AND DATABASES MICKEY SCHULHOF PRESIDENT OF SONY SOFTWARE CORP AND A PHD IN SOLIDSTATE PHYSICS HAS A SIMILAR VISION SOMEONE IS DRIVING HIS CAR AND HEARS A CD HE LIKES MR SCHULHOF SAYS HE PUNCHES UP A SONY PRODUCT LIST FINDS THE TITLE AND PUNCHES A BUTTON THAT SAYS SEND ME THAT CD' THE FOLLOWING MORNING THE CD IS AT HIS HOUSE CHARGED TO HIS MASTER CHARGE THAT DIRECT DISTRIBUTION NETWORK WOULD ELIMINATE THE NEED FOR MANY MUSIC AND VIDEO RETAILERS SONY WOULD KEEP PART OR ALL OF THE RETAIL MARKUP GENERAL MAGIC AND ITS PARTNERS THINK PICS WILL GET OFF TO A RELATIVELY SLOW START BECAUSE THEY MUST AWAIT THE ELECTRONIC SERVICES THAT WILL MAKE THEM MORE USEFUL BUT MR FALLON OF AT&T SAYS I WOULD HOPE WE HAVE PENETRATED ALL THE EARLY ADOPTER SEGMENTS BY THE END OF THE DECADE WE CERTAINLY HOPE TO DO AT LEAST AS WELL IF NOT BETTER THAN THE CELLULARPHONE INDUSTRY WHICH GREW TO 10 MILLION SUBSCRIBERS OVER THE PAST 10 YEARS INDEED MOST OF THE PARTNERS THINK THE EVENTUAL MARKET FOR PICS WILL BE SOMEWHERE BETWEEN THE 10 MILLION CELLULAR PHONE USERS AND THE 100 MILLION TELEPHONE OWNERS HOW DO THESE COMPANIES KNOW THAT GENERAL MAGIC CAN DELIVER THESE NEW TECHNOLOGIES VERSIONS OF MAGIC CAP HAVE BEEN DEMONSTRATED TO GENERAL MAGIC'S INVESTORS BUT THEY WON'T BE FINISHED UNTIL MIDYEAR AT THE EARLIEST WHILE TELESCRIPT IS BEHIND SCHEDULE THE PARTNERSHIP IS BEING ANNOUNCED TODAY SO THE PARTNERS CAN COME OUT OF THE CLOSET SAYS ONE SONY OFFICIAL AND START WORKING WITH SOFTWARE DEVELOPERS AND SERVICE PROVIDERS SOME OF THE PARTNERS WERE FIRST INTERESTED IN THE PROJECT BY APPLE'S MR SCULLEY WHO ACTED AS GENERAL MAGIC'S SPONSOR AFTER HE DECIDED THE UNIT SHOULD SEEK PARTNERS HE PROVIDED INTRODUCTIONS TO PEOPLE LIKE NORIO OHGA SONY'S CHIEF EXECUTIVE OFFICER AND GEORGE FISHER MOTOROLA'S CEO THE PARTNERS ALSO TOOK COMFORT IN THE TRACK RECORD OF THE TINY COMPANY'S TEAM BILL ATKINSON ITS CHAIRMAN AND ANDY HERTZFELD SENIOR VICE PRESIDENT FOR SOFTWARE DEVELOPMENT CREATED MOST OF THE MACINTOSH CODE MR HERTZFELD'S OFFICIAL TITLE ALSO INCLUDES THE SOBRIQUET SOFTWARE WIZARD JIM WHITE AND RICH MILLER VICE PRESIDENTS OF COMMUNICATIONSENGINEERING AND PLANNING WERE LEADERS IN THE DEVELOPMENT OF ELECTRONICMAIL STANDARDS MR WHITE INVENTED THE REMOTE PROGRAMMING AT THE HEART OF TELESCRIPT MOTOROLA WAS PERSUADED TO JOIN UP BY THE PRESENCE OF MESSRS ATKINSON AND HERTZFELD AT&T MORE BY THAT OF MR WHITE BUT IT WAS THE PITCH DELIVERED BY MR PORAT A STANFORD UNIVERSITY PHD IN COMMUNICATIONS THAT GOT THEM TO SIGN ON HE CERTAINLY CONVINCED MOTOROLA'S CHIEF EXECUTIVE OFFICER GEORGE FISHER IN A HURRY CHRISTOPHER GALVIN MOTOROLA'S SENIOR EXECUTIVE VICE PRESIDENT RECALLS THAT IT TOOK JUST 10 MINUTO DECIDE TO INVEST IN GENERAL MAGIC IN 1990 MR GALVIN SAYS HE TOLD MR FISHER THAT I DON'T THINK YOU CAN DO ANYTHING BUT GO AHEAD IN LATE SEPTEMBER 1990 MR SCULLEY ARRANGED A MEETING BETWEEN MR PORAT AND MR OHGA SONY'S CEO AFTER LISTENING TO MR PORAT'S DISCUSSION OF SEAMLESS COMMUNICATIONS AND WANTS AND NEEDS MR OHGA STOOD UP MARC I LIKE THIS VERY MUCH BUT WE ARE A CONSENSUS CULTURE HE SAID MR PORAT'S HEART SANK AT THE THOUGHT OF ENDLESS DELAYS BUT THEN MR OHGA ADDED AND I WANT CONSENSUS BY NEXT THURSDAY MR PORAT SAYS HE HAD A COMMITMENT BY THAT DAY CERTAINLY THE GENERAL MAGIC TEAM EXUDES CONFIDENCE AND ENERGY EMPLOYEES ARE CALLED MAGICIANS RATHER THAN EMPLOYEES THE FLOORS OF THEIR OFFICES IN A NONDESCRIPT OFFICE BUILDING IN PALO ALTO CALIF ARE LITTERED WITH FUTONS BECAUSE MANY OF THE STAFF SLEEP THERE A CHOCOLATECOLORED RABBIT NAMED BOWSER MEANDERS FROM CUBICLE TO CUBICLE THE COMPANY LOGO IS AN EXTREMELY COCKY LOOKING RABBIT BOUNCING OUT OF A MAGICIAN'S HAT MR HERTZFELD A CHERUBICLOOKING MAN SOMETIMES CALLED YODA BY THE YOUNGER STAFF IS THE SPIRITUAL LEADER HOWEVER HE IS NOTORIOUSLY REBELLIOUS AND LEFT APPLE IN A HUFF BECAUSE BUSINESSMEN NOT VISIONARIES WERE RUNNING THE COMPANY IT WAS NO LONGER A GREAT ADVENTURE HE WAS DEEPLY SUSPICIOUS WHEN HIS FRIEND MR ATKINSON WHO RESEMBLES A DISHEVELED CALIFORNIA SURFER WITH GLASSES ARRANGED A MEETING WITH MR PORAT IN EARLY 1990 MR PORAT WANTED YODA TO JOIN GENERAL MAGIC MARC IS A VERY SLICK SALESMAN AND I REACTED NEGATIVELY AT FIRST MR HERTZFELD SAYS I FELT THE SNAKE OIL BUT WHEN I LOOKED DEEPER I SAW IT COULD CHANGE THE WORLD GENERAL MAGIC'S SOFTWARE WIZARD PREDICTS THAT 1993 IS JUST DIPPING THE TOE INTO THE POND PICS WILL BE WIDELY AVAILABLE IN 1994 AND WILL COME TO FRUITION IN THE MID1990S IT WILL BE REMEMBERED AS A HISTORIC SHIFT MANY OTHER COMPUTER EXPERTS ARE FAR MORE SKEPTICAL THEY NOTE THE HIGH PRICES OF THE PORTABLE HANDHELD COMPUTERS THAT OPERATE BY CELLULAR PHONE ONE EO MODEL WILL COST AS MUCH AS 3000 MOREOVER JERRY MICHALSKI A CONTRIBUTING EDITOR TO RELEASE 10 AN INDUSTRY NEWSLETTER SAYS THE GENERAL MAGIC CROWD MIGHT HAVE A REAL PROBLEM MANAGING EXPECTATIONS UNTIL MORE SERVICES COME ONLINE AND THEN THERE IS WILLIAM GATES III THE CHAIRMAN OF THE MUCHFEARED SOFTWARE BEHEMOTH MICROSOFT WE ARE SCARED OF GATES CONCEDES MR HERTZFELD MICROSOFT SAYS ITS BESTSELLING WINDOWS COMMAND SYSTEM WILL BE ABLE TO COMMUNICATE WITH ANY OTHER SYSTEM AND IT IS LIKELY TO LAUNCH AN ALLOUT ATTACK ON MAGIC CAP WHICH COULD UNDERMINE MR GATES'S AMBITION TO GET PIC MANUFACTURERS TO PUT A VERSION OF WINDOWS ON ALL OF THEIR MACHINES MR SCHULHOF SONY'S SOFTWARE CHIEF SEES NO OBSTACLES TO TELESCRIPT BECOMING A WORLD STANDARD BUT HE AGREES THAT THERE MIGHT BE A FORMAT WAR IF MR GATES COMES UP WITH A WINDOWS VERSION AS DEFT AS MAGIC CAP ALTHOUGH HE CONSIDERS THAT UNLIKELY HE THINKS MAGIC CAP IS BY FAR THE BEST COMMAND SYSTEM HE HAS EVER SEEN BROWSING THROUGH STORES IS THE KEY TO RETAIL SALES HE SAYS AND MAGIC CAP IS THE FIRST COMMAND SYSTEM THAT ALLOWS BROWSING THROUGH VAST QUANTITIES OF DATA ODDLY ENOUGH THE MORE SUCCESSFUL THE GENERAL MAGIC ALLIANCE MAY BECOME THE MORE SECONDGUESSING MR SCULLEY MIGHT HAVE TO ENDURE HE HAS ALREADY BEEN ATTACKED WITHIN APPLE FOR ALLOWING THE OTHER COMPANIES TO INVEST IN GENERAL MAGIC SOMEDAY HIS DECISION MIGHT BE COMPARED WITH IBM'S MISTAKE IN LETTING INTEL CORP AND MICROSOFT PROVIDE THE STANDARDS FOR PERSONAL COMPUTERS IN ANY EVENT GENERAL MAGIC IS HELPING COMPETITORS JUMP INTO THE MARKET TO DO BATTLE WITH APPLE'S NEWTON IT'S TRUE I GOT HEAT IN THE BEGINNING MR SCULLEY SAYS BUT AS PEOPLE REALIZED HOW MUCH APPLE CAN BUILD AROUND THESE STANDARDS THEY REALIZED IT'S A SMALL PRICE TO PAY TO JUMPSTART AN ENTIRE INDUSTRY HE ADDS THAT FIERCE COMPETITION IS INEVITABLE AND THAT WE'D RATHER HAVE A VERY LARGE HIGHGROWTH INDUSTRY WHERE WE HAVE TO COMPETE FROM OUR STRENGTHS THAN SEE WHAT HAPPENED IN THE 1980S WHEN WE WERE LARGELY A NICHE COMPANY WITH BETTER TECHNOLOGY MR PORAT AT&T OFFICERS AND OTHERS ALSO THINK THE CRITICISM IS UNJUSTIFIED BECAUSE THEY BELIEVE APPLE NEVER WOULD HAVE PERSUADED OTHER BIG CONCERNS TO SUPPORT A TECHNOLOGY IT CONTROLLED GENERAL MAGIC'S PARTNERS ARE JUST HAPPY TO HAVE ONE MORE SHOT AT THE BRASS RING SONY'S MR SCHULHOF RECALLS GETTING INTO AN ELEVATOR WITH OLAF OLAFSSON PRESIDENT OF SONY ELECTRONIC PUBLISHING CORP IMMEDIATELY AFTER MR OLAFSSON'S FIRST MEETING WITH MR PORAT 9302080108 930208 WHO'S NEWS CORTEX NAMES STEIGROD PRESIDENT IRVINE CALIF CORTEX PHARMACEUTICALS INC SAID IT NAMED ALAN A STEIGROD 55 YEARS OLD PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR HE SUCCEEDS JAY D GLASS 47 WHO HAS SERVED AS INTERIM PRESIDENT AND CHIEF EXECUTIVE MR GLASS WHO HOLDS ABOUT A 4 STAKE IN THE COMPANY REMAINS A DIRECTOR MR STEIGROD A 32YEARVETERAN OF THE PHARMACEUTICAL INDUSTRY WAS AN EXECUTIVE VICE PRESIDENT OF GLAXO INC AND WORKED MOST RECENTLY AS AN INDEPENDENT INDUSTRY CONSULTANT CORTEX DEVELOPS PRODUCTS FOR THE TREATMENT AND DIAGNOSIS OF AGERELATED DISEASES AND DISORDERS OF THE BRAIN 9302080107 930208 FINANCING BUSINESS PUGET SOUND POWER & LIGHT CO PUGET SOUND POWER & LIGHT CO BELLEVUE WASH SAID IT WILL REDEEM ON MARCH 8 ALL 20 MILLION OUTSTANDING OF ITS 75 FIRST MORTGAGE BONDS AND ALL 30 MILLION OUTSTANDING OF ITS 775 FIRST MORTGAGE BONDS DUE 1999 AND 2002 RESPECTIVELY THE 75 BONDS WILL BE REDEEMED AT 1014 OF THE PRINCIPAL AMOUNT AND THE 775 BONDS AT 10021 OF PRINCIPAL THE UTILITY IS REPLACING THE ISSUES WITH MEDIUMTERM NOTES AT LOWER INTEREST RATES 9302080106 930208 REPORTS ATTACK CIA FOR ITS ROLE IN BNL CASE CALLS FOR PROSECUTOR REVIVED AS INTELLIGENCE AGENCY FACES CRITICISM IN CASE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO NEW REPORTS CRITICIZED THE CENTRAL INTELLIGENCE AGENCY FOR MISHANDLING ITS ROLE IN THE INVESTIGATION OF THE BANCA NAZIONALE DEL LAVORO CASE AND HAVE SPARKED RENEWED CALLS FOR A SPECIAL PROSECUTOR THE REPORTS FROM THE SENATE INTELLIGENCE COMMITTEE AND THE CIA'S INSPECTOR GENERAL SAID THAT US INTELLIGENCE AGENCIES HAD RELATIVELY LITTLE INFORMATION ABOUT THE SPECIFICS OF DEALINGS BETWEEN BNL'S ATLANTA BRANCH AND IRAQ'S WEAPONSPROCUREMENT NETWORK AND THAT IT TOOK JUSTICE DEPARTMENT LAWYERS A FULL YEAR TO ASK FOR THE INFORMATION EVEN THEN THE SENATE REPORT STATED THE JUSTICE DEPARTMENT'S LAWYERS GAVE IT SCANT ATTENTION THE IRAQBNLATLANTA LINKAGE LED TO 21 BILLION OF ALLEGEDLY UNAUTHORIZED LOANS MOST OF WHICH WERE USED BY IRAQ TO FINANCE ITS NUCLEARWEAPONS PROGRAM AND OTHER MILITARY EFFORTS IT WAS FIRST MADE PUBLIC IN A FEDERAL RAID ON AUG 4 1989 THE SENATE COMMITTEE'S REPORT RELEASED ALONG WITH THE CIA REPORT FRIDAY SHOWED THAT THE JUSTICE DEPARTMENT DIDN'T REQUEST SPECIFIC INFORMATION FROM US INTELLIGENCE AGENCIES UNTIL AUG 3 1990 ONE DAY AFTER IRAQI FORCES INVADED IRAQ THEN THERE WERE SEVERAL FURTHER FOULUPS THAT LEFT THE JUSTICE DEPARTMENT'S INVESTIGATIVE TEAM IN ATLANTA WITH GAPS IN THEIR KNOWLEDGE OF WHAT THE SPY AGENCIES KNEW THEY INCLUDED ASSUMPTIONS ON THE PART OF THE ATLANTA TEAM AND OFFICIALS OF THE JUSTICE DEPARTMENT'S FRAUD SECTION IN WASHINGTON THAT EACH HAD GIVEN THE JOB OF DEALING WITH INTELLIGENCE INFORMATION TO THE OTHER A PERVASIVE HEARSAY NATURE OF THE INTELLIGENCE REPORTS THAT MADE MOST OF THEM USELESS FOR PROVING WHETHER OFFICIALS AT BNLROME KNEW OF THE FRAUD MANY WERE BASED ON NEWS REPORTS AND DINNER TABLE SPECULATION ONE JUSTICE DEPARTMENT LAWYER CALLED THEM LITTLE BLIPS OF INTELLIGENCE THAT COULDN'T BE PUT TOGETHER A FAILURE OF JUSTICE DEPARTMENT LAWYERS TO STUDY SOME OFTHE REPORTS A FAT SHEAF OF NATIONAL SECURITY AGENCY INTERCEPTS OF BNLRELATED MATERIAL FOR EXAMPLE WAS LEFT UNREAD BECAUSE OF AN UNEXPECTED SNOWFALL THAT SENT THE LAWYERS SCURRYING BACK TO THE JUSTICE DEPARTMENT A FAILURE BY THE CIA TO RETRIEVE FIVE REPORTS FROM ITS FILES UNTIL AFTER A SENTENCING HEARING ON THE BNLATLANTA CASE LAST SEPTEMBER BECAUSE THEY HAD BEEN STORED APART FROM THE CIA'S MAIN FILING SYSTEM THEY WERE STORED PARTLY ON ADVICE FROM THE FEDERAL BUREAU OF INVESTIGATION THAT IF THEY HAD BEEN DISTRIBUTED TO OTHER AGENCIES THEY WOULD HAVE BEEN DISCOVERABLE AND USED AGAINST THE JUSTICE DEPARTMENT'S CASE IN COURT NEITHER REPORT SHED FURTHER LIGHT ON JUST WHAT BNLROME KNEW ABOUT THE ALLEGED FRAUD SEN HOWARD METZENBAUM D OHIO A MEMBER OF THE SENATE PANEL SAID ITS REPORT IS TOO NARROW TO MAKE SENSE OF THIS INCREDIBLE BOTCH BY THE US GOVERNMENT HE CALLED FOR THE CLINTON ADMINISTRATION TO REQUEST A SPECIAL PROSECUTOR AS DID REP HENRY GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE WHO COMPLAINED THAT THE SENATE REPORT SHOWS THE CIA HAD INFORMATION THAT IT DIDN'T REVEAL WHEN ASKED BY HIS COMMITTEE THE SENATE REPORT NOTED THAT A RUNNING FIRESTORM ERUPTED LAST SEPT 17 BETWEEN LAWYERS AT THE JUSTICE DEPARTMENT AND THE CIA OVER A CIA STATEMENT THAT INDICATED THAT THE SPY AGENCY ONLY HAD NEWS INFORMATION ABOUT WHETHER BNLROME MAY HAVE BEEN INVOLVED IN THE FRAUD ALTHOUGH THE FIGHT ERUPTED IN MANY MEETINGS OVER TWO WEEKS ROBERT GATES THEN THE HEAD OF THE CIA FIRST HEARD ABOUT IT ON SEPT 29 WHEN HE RECEIVED A QUERY FROM THE SENATE INTELLIGENCE COMMITTEE IN A STATEMENT ACCOMPANYING THE CIA REPORT WHICH CALLS FOR THE AGENCY TO IMPROVE ITS ABILITY TO HELP LAW ENFORCEMENT OFFICIALS MR GATES CALLED THE MATTER A TRAIN WRECK HE SAID NO ONE IN THE CIA HAS ANYTHING TO BE PROUD OF IN THIS CASE MISTAKES CLEARLY WERE MADE AND THERE WAS CARELESSNESS STILL HE REFUSED TO ACCEPT THE CIA INSPECTOR GENERAL'S CONCLUSION THAT FOUR CIA OFFICIALS SHOULD HAVE BEEN DISCIPLINED FOR ERRORS IN JUDGMENT THE SENATE REPORT CALLED FOR THE JUSTICE DEPARTMENT TO TAKE STEPS TO INSULATE ITS PROSECUTORS FROM POLITICAL PRESSURES IT NOTED THAT LEADERS OF THE PROSECUTION TEAM IN ATLANTA RECEIVED CALLS FROM A WHITE HOUSE ATTORNEY HAD MEETINGS WITH THE STAFF OF PRESIDENT BUSH'S NATIONAL SECURITY COUNCIL WHICH HAD BEEN PUSHING FOR MORE AID TO IRAQ AND ON SEPT 30 1990 EVEN MET WITH ITALY'S AMBASSADOR TO THE US WHO HAD LAUNCHED A LOBBYING CAMPAIGN ON THE THEME THAT BNLROME HAD BEEN THE VICTIM OF A TERRIBLE FRAUD JUST WHAT OFFICIALS OF BNLROME KNEW OF THE ALLEGED FRAUD HAS BECOME AN EXPENSIVE QUESTION FOR THE CLINTON ADMINISTRATION IN DECEMBER THE ITALIAN GOVERNMENTOWNED BANK SUED THE US FOR 370 MILLION OF US AGRICULTURE DEPARTMENTINSURED COMMODITY LOANS THAT BNL EXTENDED TO IRAQ WHICH ARE IN DEFAULT FRAUD IF THE JUSTICE DEPARTMENT COULD PROVE IT COULD BLOCK THE CLAIM MEANWHILE JUDGE MARVIN SHOOB A FEDERAL JUDGE IN ATLANTA HAS ORDERED THE CIA TO PROVIDE ALL OF ITS SECRET DOCUMENTS IN THE CASE FOR A SENTENCING HEARING IN MARCH WHEN HE MUST DEAL WITH FIVE BNLATLANTA EMPLOYEES WHO HAVE PLEADED GUILTY IN THE CASE THE MANAGER OF THE ATLANTA BRANCH CHRISTOPHER DROGOUL IS SCHEDULED TO BE TRIED IN OCTOBER THE JUSTICE DEPARTMENT'S CASE AGAINST HIM ASSUMES BNLROME OFFICIALS WEREN'T INVOLVED 9302080105 930208 EMC NET DOUBLED IN FOURTH QUARTER EUROPEAN GAINS CITED HOPKINTON MASS EMC CORP CITING PARTICULARLY STRONG EUROPEAN SALES SAID FOURTHQUARTER EARNINGS MORE THAN DOUBLED ON A 71 RISE IN REVENUE SEPARATELY THE MAKER OF DATA STORAGE SYSTEMS SAID IT PLANS TO OFFER PUBLICLY ABOUT 45 MILLION COMMON SHARES INCLUDING FOUR MILLION SHARES TO BE SOLD BY EMC THE COMPANY SAID IT PLANS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION ON OR ABOUT FRIDAY FOR THE OFFERING A SPOKESMAN DECLINED TO ELABORATE ON THE OFFERING UNTIL THE REGISTRATION STATEMENT IS FILED EMC'S FOURTHQUARTER RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT THE COMPANY'S STOCK DROPPED FRIDAY PAUL WEINSTEIN A KIDDER PEABODY & CO ANALYST SAID THE STOCK DROP PROBABLY REFLECTED CONCERNS ABOUT DILUTIVE EFFECTS OF EMC'S PLANNED OFFERING AND A GENERAL DECLINE IN TECHNOLOGY STOCKS FRIDAY EMC SAID NET INCOME WAS 101 MILLION OR 23 CENTS A SHARE FULLY DILUTED COMPARED WITH THE YEAREARLIER 48 MILLION OR 12 CENTS A SHARE REVENUE ROSE TO 1091 MILLION FROM 638 MILLION THE AVERAGE NUMBER OF SHARES DURING THE QUARTER ROSE TO 472 MILLION FROM 394 MILLION FULLY DILUTED AND ADJUSTED FOR A 3FOR2 STOCK SPLIT IN NOVEMBER EMC SAID EMC'S STRONG RESULTS CONTINUE A SERIES OF SHARP RISES IN QUARTERLY EARNINGS AND REVENUE OVER THE PAST YEAR AND REPRESENT ITS 12TH CONSECUTIVE PROFITABLE QUARTER THE COMPANY HAS BEEN STEALING MARKET SHARE FROM INTERNATIONAL BUSINESS MACHINES CORP IN THE DATA STORAGE MARKET BY SELLING COMPUTER DISK DRIVES THAT ARE SMALLER AND CHEAPER THAN IBM'S COMPETING MACHINES EMC'S STORAGE DEVICES USE REDUNDANT ARRAYS OF INEXPENSIVE DISKS OR RAID COORDINATED BY SOFTWARE TO HOLD LARGE AMOUNTS OF DATA EMC SAID EUROPEAN SALES ROSE 73 FROM A YEAR EARLIER SALES IN ASIA ROSE 40 EMC ADDED THAT ITS MARGINS REMAINED STEADY THROUGHOUT THE FOURTH QUARTER DESPITE PRICING PRESSURES 9302080104 930208 FEW ATTEMPTS SEEN TO AVOID NEW LAW BY MICHAEL SELZ AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL WITH THE FAMILYLEAVE BILL NOW SIGNED INTO LAW SOME SMALLBUSINESS OWNERS WONDER IF THEY HAVE HIT UPON A SIMPLE WAY TO COPE WITH THE FALLOUT JUST STAY SMALL THERE ARE AFTER ALL PLENTY OF WAYS FOR EMPLOYERS TO KEEP THE PAYROLL BELOW 50 WORKERS AND THUS EXEMPT THEMSELVES FROM THE FAMILYLEAVE LEGISLATION AND STAYING BELOW THE MAGIC 50 FIGURE WOULD FREE THEM FROM MANY PROVISIONS OF THE AMERICANS WITH DISABILITIES ACT WHICH REQUIRES MANY ACCOMMODATIONS MANY BUSINESS OWNERS HEATEDLY OPPOSED THAT LAW TOO LAWYERS SAY COMPANIES CAN ALWAYS SIGN UP TEMPORARY OR CONTRACT EMPLOYEES WHO AREN'T COUNTED IN A FIRM'S LEGAL WORK FORCE EMPLOYERS CAN ALSO HIRE PARTTIMERS WHO WORK 25 OR FEWER HOURS A WEEK THEY TOO ARE EXEMPT FROM THE NEW LAWS SEN BOB DOLE HAS SUGGESTED SMALL FIRMS MIGHT GO EVEN FURTHER OF THE 70 OR SO COMPANIES IN KANSAS THAT HAVE EXACTLY 50 EMPLOYEES MANY MIGHT FIRE ONE EMPLOYEE TO FREE THEMSELVES FROM REGULATION MR DOLE SAYS SOME COMPANIES THINK THEY STAND TO GAIN I THINK WE'LL BE A BIG BENEFICIARY OF THE FAMILYLEAVE LAW SAYS JOHN FANNING PRESIDENT OF UNIFORCE TEMPORARY SERVICES A NEW HYDE PARK NY PERSONNELSUPPLY CONCERN IT PLANS TO MARKET ITS SERVICES TO SMALL FIRMS AFFECTED BY THE FAMILYLEAVE LAW BUT OTHERS ARE MORE SKEPTICAL THE FAMILYLEAVE BILL WILL BE A POSITIVE BUT NOT A SENSATIONAL POSITIVE FOR THE TEMPORARYHELP BUSINESS SAYS HARVEY MASLIN PRESIDENT OF WESTERN TEMPORARY SERVICES INC A BIG TEMP FIRM IN WALNUT CREEK CALIF HE NOTES THAT MANY STATES ALREADY HAVE SOME FORM OF FAMILYLEAVE LAW AND THESE LAWS HAVE PRODUCED ONLY A MODEST INCREASE IN THE USE OF TEMPORARY HELP AND LAWYERS SMALLBUSINESS CONSULTANTS AND COMPANY OWNERS THEMSELVES SAY FEW FIRMS ARE LIKELY TO RESTRAIN THEIR GROWTH LAY OFF WORKERS OR OTHERWISE ALTER THEIR OPERATIONS TO ESCAPE THE EFFECTS OF THE FAMILYLEAVE LAW THE GROWTH OF MY BUSINESS IS MORE IMPORTANT THAN ANY FEDERAL REGULATION SAYS KELVYN CULLIMORE JR PRESIDENT AND CHIEF EXECUTIVE OF DYNATRONICS LASER CORP A SALT LAKE CITY MAKER OF MEDICAL DEVICES WITH 45 EMPLOYEES SOME COMPANIES MIGHT PLAY GAMES IF THEY'RE TEETERING ON THE BRINK OF THE 50WORKER THRESHOLD MR CULLIMORE SAYS BUT IF IT'S A QUESTION OF GROWTH THERE'S NOT A FEDERAL LAW I'M AWARE OF THAT WOULD KEEP ME FROM HIRING MORE PEOPLE TYNES HILDEBRAND PRESIDENT OF DALLASBASED ALLIANCE EMPLOYEE LEASING CORP ADDS WE WOULDN'T STAY UNDER 50 JUST TO AVOID THE LAW MR HILDEBRAND SAYS HIS CLOSELY HELD FIRM HAS ABOUT 35 EMPLOYEES EVEN IF HIS COMPANY EVENTUALLY REACHES THE LAW'S THRESHOLD HE DOESN'T THINK MANY WORKERS WOULD TAKE ADVANTAGE OF IT MOST PEOPLE CAN'T AFFORD TO GO 12 WEEKS WITHOUT AN INCOME HE SAYS CONSULTANTS ALSO PREDICT LITTLE ACTION I CAN'T IMAGINE THIS WILL BE A PIECE OF LEGISLATION THAT PUTS FIRMS OVER THE EDGE WHEN IT COMES TO HIRING DECISIONS SAYS CAROL SLADEK A CONSULTANT WITH HEWITT ASSOCIATES A LINCOLNSHIRE ILL CONCERN THAT SPECIALIZES IN EMPLOYEE BENEFIT AND COMPENSATION PROGRAMS EVEN ONE OF SEN DOLE'S OWN CONSTITUENTS SHRUGS OFF THE CONGRESSMAN'S CONCERNS JOE ELLZEY PRESIDENT OF ST ENTERPRISES LTD A DODGE CITY KAN TELECOMMUNICATIONS CONCERN WITH 49 EMPLOYEES SAYS HE WOULDN'T HESITATE TO HIRE AN ADDITIONAL WORKER THE FAMILYLEAVE BILL IS A POLITICAL HOT POTATO MR ELLZEY SAYS BUT I DON'T THINK ITS PRACTICAL EFFECT IS GOING TO BE EXTENSIVE OF COURSE THE LAW COULD HAVE OTHER RAMIFICATIONS DAN GARNER NATIONAL DIRECTOR OF ENTREPRENEURIAL SERVICES AT ERNST & YOUNG AND A MEMBER OF THE US CHAMBER OF COMMERCE'S SMALLBUSINESS COUNCIL SAYS HE FEARS THE FAMILYLEAVE LAW MIGHT EVENTUALLY LEAD TO STILL MORE REGULATION REQUIRING FIRMS TO PAY EMPLOYEES WHILE THEY'RE ON LEAVE SUCH A LAW COULD TRIGGER RETRENCHING AMONG SMALL FIRMS MR GARNER SAYS BUT UNTIL THAT HAPPENS HE ADDS I DON'T BELIEVE THE IMPACT OF THIS LAW IS GOING TO BE SEVERE ENOUGH TO CAUSE THAT TO HAPPEN EVEN SO MR GARNER SAYS THERE WILL ALWAYS BE PEOPLE WHO WILL GO TO EXTREMES TO AVOID REGULATION FOR INSTANCE HE SAYS SOME BUSINESS OWNERS MIGHT EVEN TRY TO BREAK THEIR COMPANY INTO PARTS TO KEEP EMPLOYMENT BELOW THE FEDERAL THRESHOLDS BUT LAWYERS WARN AGAINST SUCH TACTICS SPLITTING UP A FIRM WOULD BE A FAIRLY BLATANT AND SUPERFICIAL ATTEMPT TO CIRCUMVENT THE LAW SAYS BYRON COX AN AUSTIN TEXAS BUSINESS LAWYER IN ADDITION TO CAUSING MORE COSTS THAN IT WOULD SAVE MR COX SAYS SUCH A MOVE WOULD REPRESENT A BADFAITH RESPONSE TO AN IMPORTANT PIECE OF FEDERAL REGULATION AND PROBABLY BE SUBJECT TO SEVERE PENALTIES 9302080103 930208 GROUP WANTS MCDONALD'S TO OFFER MEATLESS BURGERS OAK BROOK ILL ACTIVISTS SEEKING TO REDUCE WORLDWIDE BEEF CONSUMPTION ARE PLANNING A MASSIVE LOBBYING EFFORT TO GET MCDONALD'S CORP TO PUT MEATLESS HAMBURGERS ON ITS MENU USING THE WEST COAST TAINTEDHAMBURGER EPISODE AS A RALLYING POINT A COALITION LED BY A GROUP CALLED BEYOND BEEF SAYS IT INTENDS TO BARRAGE MCDONALD'S CORPORATE HEADQUARTERS TODAY WITH PHONE CALLS AND LETTERS WITH ITS MESSAGE THE ONLY TRULY RISKFREE HAMBURGERS ARE VEGGIE BURGERS SAID BEYOND BEEF'S EXECUTIVE DIRECTOR HOWARD LYMAN NOTING THE RECENT ADDITION OF A MEATLESS SANDWICH BY SOME MCDONALD'S OUTLETS IN THE NETHERLANDS AT THE TIME THAT ITEM WAS ADDED HOWEVER SENIOR EXECUTIVES OF THE CHAIN SAID THEY HAD NO INTENTION OF PUTTING THE SANDWICH ON US MENUS BEYOND BEEF'S STRATEGY ALSO CALLS FOR THOUSANDS OF VOLUNTEERS TO ADOPT MCDONALD'S RESTAURANTS AROUND THE US BEGINNING IN MIDAPRIL AND DISTRIBUTE ANTIBEEF LITERATURE INCLUDING COLORING BOOKS TO CUSTOMERS MR LYMAN SAID MCDONALD'S IS BEING SINGLED OUT FOR THE SIXWEEK SPRING CAMPAIGN BECAUSE OF THE COMPANY'S WORLDWIDE PRESENCE IT'S NOT MCDONALD'S WE'RE PICKING ON SO MUCH AS ITS CUSTOMERS HE SAID IN AN INTERVIEW OVER THE WEEKEND OFFICIALS OF THE OAK BROOK ILL COMPANY COULDN'T BE REACHED TO COMMENT 9302080102 930208 CROSSCOMM SAYS NET MORE THAN TRIPLED IN FOURTH QUARTER MARLBOROUGH MASS CROSSCOMM CORP BENEFITING FROM STRONG GROWTH IN THE COMPUTER NETWORKING MARKET WILL REPORT THAT FOURTHQUARTER PROFIT MORE THAN TRIPLED ON A 70 JUMP IN REVENUE ARTHUR W COVIELLO JR CHIEF FINANCIAL OFFICER SAID NET INCOME WAS ABOUT 925000 OR 12 CENTS A SHARE ON REVENUE OF 9 MILLION MR COVIELLO SAID A YEAR EARLIER NET WAS 276000 OR SIX CENTS A SHARE ON REVENUE OF 53 MILLION CROSSCOMM IS ONE OF A HANDFUL OF NEW COMPANIES ENJOYING STRONG GROWTH AS MORE CORPORATIONS DECIDE TO CONNECT THEIR DESKTOP COMPUTERS INTO OFFICE AND COMPANYWIDE NETWORKS THESE COMPANIES SUPPLY THE ROUTERS HUBS AND OTHER DEVICES THAT CREATE THE NETWORKS MR COVIELLO SAID CROSSCOMM HAS STAKED A NICHE IN THE LARGE MARKET THAT IS DEVELOPING AS INTERNATIONAL BUSINESS MACHINES CORP CUSTOMERS MOVE TOWARD PC NETWORKS IN ADDITION TO THEIR MAINFRAME COMPUTERS OUR TECHNOLOGY LETS IBM CUSTOMERS BUILD CORPORATE PC NETWORKS WITHOUT HAVING TO THROW OUT THE MAINFRAME HE SAID THE MARKET REQUIRES SKILLS IN IBM'S SYSTEMS NETWORK ARCHITECTURE OR SNA AND IS POISED FOR EXPLOSIVE GROWTH MR COVIELLO SAID CROSSCOMM HAD THE NO 1 POSITION OF ANY VENDOR AFTER IBM IN THIS IBM INTERNETWORKING MARKET ACCORDING TO INTERNATIONAL DATA CORP A MARKET RESEARCH CONCERN IT WAS ALSO ONE OF THE STRONGESTPERFORMING NEW STOCK ISSUES LAST YEAR FOR THE YEAR CROSSCOMM'S NET ROSE 117 TO 19 MILLION OR 30 CENTS A SHARE AFTER A 1 MILLION PRETAX CHARGE FOR A PREVIOUSLY DISCLOSED LEGAL SETTLEMENT RELATED TO A DISPUTE WITH A CONSULTANT IN 1991 CROSSCOMM HAD NET OF 875000 OR 18 CENTS A SHARE BASED ON 30 FEWER SHARES OUTSTANDING BEFORE THE INITIAL PUBLIC OFFERING LAST JUNE REVENUE ROSE 79 TO 293 MILLION FROM 164 MILLION 9302080101 930208 LETTERS TO THE EDITOR IF THE HORIZON LEANS WATCH WHERE YOU STEP MAYA ANGELOU'S CLINTON INAUGURAL POEM THIS BRIGHT MORNING DAWNING INSPIRED ME TO WRITE THE FOLLOWING WHO WENT THE WAY THE DINOSAUR'VE GONE THAT BEG US NEVER TO CLOSE OUR EYES GIVER WHEN YOU WERE STILL A ROCK A TREE A RIVER WHY CAN'T THE RUSSIAN PORTUGUESE OR CHINESE OR UPON THOSE DRY TOKENS THE DINOSAURS DROPPED AFTER OUR PRESIDENT WHOM WE HOLD SO DEAR SO DON'T WISH US GOOD MORNING BUT GOOD AFTERNOON 9302080100 930208 TECHNOLOGY & MEDICINE INFORMATION AGE LIBRARIES SHIFT FROM BOOKS TO COMPUTER BY WILLIAM M BULKELEY CAN THIS BE A LIBRARY EVERY DAY TEENAGE WORKERS AT THE CHICAGOKENT SCHOOL OF LAW AT ILLINOIS INSTITUTE OF TECHNOLOGY SLIT OPEN BINDINGS RIP OUT THE PAGES AND THROW AWAY THE BOOKS A COMPUTER SCANS THE PAGES AND STORES THEM SO ANYONE WITH A LIBRARY PASSWORD AND A COMPUTER CAN RETRIEVE THEM BUT THE BOOKS WILL NO LONGER BE ON MY SHELVES SAYS MICKIE VOGES DIRECTOR OF THE LEGAL INFORMATION CENTER AND PROFESSOR OF LAW AS FARFETCHED AS IT SOUNDS AND IT WILL BE DECADES BEFORE LIBRARIES BECOME TOTALLY ELECTRONIC SOME LIBRARIES ARE STARTING TO CREATE LIMITLESS DIGITAL BOOKSHELVES FOR THE MUNDANE REASON THAT THEY'RE RUNNING OUT OF SPACE ON THEIR BOOKSHELVES IN ONE OF THE MOST AMBITIOUS EFFORTS TO DATE COLUMBIA UNIVERSITY'S LAW LIBRARY TOMORROW WILL ANNOUNCE A PLAN TO SCAN AND STORE ON A 15 MILLION SUPERCOMPUTER 10000 DETERIORATING OLD BOOKS YEARLY BY 1996 THAT WOULD PROVIDE ENOUGH SHELF SPACE FOR ALL THE NEW COPYRIGHTED MATERIAL THE LIBRARY GETS YEARLY AT A FAR CHEAPER COST THAN A CANCELED PLAN TO BUILD A 20 MILLION ADDITION TO STORE NEW BOOKS SUCH EARLY EFFORTS AT ELECTRONIC LIBRARIES FORETELL VAST CHANGES IN ACADEMIC RESEARCH WHEN SCHOLARS GO TO THE LIBRARY IN THE NEXT CENTURY THEY WON'T HAVE TO GO ANYWHERE THE LIBRARY WILL COME TO THEM ON A DESKTOP COMPUTER NEED ORIGINAL DOCUMENTS FROM YALE OR OXFORD UNIVERSITIES NO PROBLEM TAP IN A REQUEST AND GET WHAT WANT ON YOUR SCREEN IF YOU DON'T KNOW EXACTLY WHAT YOU WANT THE COMPUTER WILL FIND IT FOR YOU PICTURES AND GRAPHS WILL APPEAR SOUND FROM THE ORAL HISTORY COLLECTION WILL COME THROUGH EARPHONES THE KNOWLEDGE WORLD IS GOING FROM A PAPER CULTURE TO AN ELECTRONIC CULTURE AND LIBRARIES WILL BE DEEPLY AFFECTED SAYS MARTIN DILLON DIRECTOR OF THE OFFICE OF RESEARCH AT THE ONLINE COMPUTER LIBRARY CENTER DUBLIN OHIO WITH ELECTRONIC NETWORKS LINKING EDUCATIONAL AND RESEARCH INSTITUTIONS THE QUESTION ARISES WHAT IS THE ROLE OF THE LIBRARY SAYS WILFRID LANCASTER PROFESSOR EMERITUS OF LIBRARY SCIENCES AT THE UNIVERSITY OF ILLINOIS WHO HAS BEEN WRITING ABOUT A FUTURE PAPERLESS SOCIETY FOR 20 YEARS FOR SOME TIME TO COME ONE ROLE WILL BE CONVERTING EXISTING BOOKS INTO ELECTRONIC FORM MS VOGES SAYS WE ALL HAVE THE SAME PROBLEMS WE RUN OUT OF SPACE WE CAN'T ACQUIRE EVERYTHING WE WANT WE HAVE TO PRESERVE MATERIALS THAT ARE FALLING APART WE TRY TO FIGURE OUT BETTER WAYS TO DELIVER INFORMATION COMPUTERS CAN HELP SOLVE ALL OF THESE PROBLEMS NOT THAT THERE AREN'T OBSTACLES PUBLISHERS FEAR RAMPANT COPYING OF ELECTRONIC MATERIAL MOREOVER THE COSTS OF RECEIVING A LOT OF DATA OVER PHONE LINES COULD POSE PROBLEMS FOR SCHOLARS WHO ARE USED TO GETTING MOST OF THEIR INFORMATION FOR FREE SO LIBRARIANS ARE CLOSELY WATCHING COLUMBIA AND CHICAGOKENT IT'S A LITTLE EARLY BUT SOMEBODY'S GOT TO DO SOME WORK WITH THIS TECHNOLOGY IN A REALWORLD SETTING SAYS TERRY MARTIN LAW LIBRARIAN AT HARVARD UNIVERSITY THE COLUMBIA LAW LIBRARY'S EFFORT WHICH IS STILL UNDER DEVELOPMENT USES A SUPERCOMPUTER CALLED THE CONNECTION MACHINE MADE BY THINKING MACHINES INC CAMBRIDGE MASS TO STORE AND SEARCH DOCUMENTS THE SUPERCOMPUTER LETS USERS ASK QUESTIONS IN ENGLISH AND GET BACK A LIST OF DOCUMENTS RELATED TO THE QUESTION USING THE SYSTEM WILLEM SCHOLTEN DIRECTOR OF COMPUTER SYSTEMS AND RESEARCH AT COLUMBIA LOOKS AT A SCREEN THAT GIVES HIM WRITING SPACE AFTER THE PHRASE TELL ME ABOUT HE TYPES IN CHILD ABUSE AND CHILD PROSTITUTION WITHIN TWO SECONDS IT GIVES HIM A LIST OF 40 DOCUMENTS SUCH AS A UNITED NATIONS REPORT ON CHILD PORNOGRAPHY AND PROSTITUTION AND ANOTHER ON CONTEMPORARY FORMS OF SLAVERY EXPLOITATION OF CHILD LABOR WHEN HE HIGHLIGHTS TWO PARAGRAPHS AS BEING CLOSE TO WHAT HE WANTS THE COMPUTER REFINES THE LIST OF DOCUMENTS THE SYSTEM EVALUATES WORDS IN THE QUERY BASED ON HOW UNUSUAL THEY ARE FIGURING THAT RARE WORDS ARE MORE IMPORTANT IT THEN RATES DOCUMENTS BASED ON HOW OFTEN THEY INCLUDE THE RARER WORDS COLUMBIA SAYS THAT SCANNING INTO COMPUTERS OLD BOOKS WHOSE ACIDLACED PAPER IS ROTTING WON'T COST ANY MORE THAN THE 100 A VOLUME THAT IT PAYS TO PRESERVE THEM ON MICROFILM AND OLD BOOKS DON'T POSE COPYRIGHT PROBLEMS COLUMBIA ALSO PLANS TO PUT PUBLICDOMAIN MATERIAL SUCH AS GOVERNMENT REPORTS ON THE SYSTEM ESPECIALLY BECAUSE THOSE FREQUENTLY ARE AVAILABLE AS COMPUTER TAPES AT CHICAGOKENT MS VOGES STORES IMAGES OF BOOKS' PAGES RATHER THAN DIGITIZING THE TEXT USERS SEARCH FOR MATERIALS THE SAME WAY THEY CURRENTLY DO FROM THE COMPUTERIZED CARD CATALOG NOT BY SEARCHING FOR PARTICULAR WORDS OR TOPICS SHE HAS SET UP A SYSTEM UNDER WHICH LAW FIRMS CAN SUBSCRIBE TO THE LIBRARY FOR AS LITTLE AS 200 A YEAR AND VIEW ANY DOCUMENT ON THE SYSTEM FROM COMPUTERS IN THEIR OWN OFFICES IF THEY WANT TO MAKE THEIR OWN COPY THEY PAY THE SCHOOL 21 AND A FEE TO THE PUBLISHER EQUAL TO THE COPYRIGHT FEE THAT WOULD BE PAID IF THEY HAD IT COPIED AT A COPY SHOP LIBRARIANS HOPE THAT COMPUTERS CAN HELP THEM AVOID REDUNDANT EFFORT IF EVERYTHING ELECTRONIC COULD BE CHEAPLY SENT FROM ONE LIBRARY TO ANOTHER EACH ONE COULD TAKE CERTAIN RESPONSIBILITIES FOR EXAMPLE HARVARD MIGHT KEEP ELECTRONIC COPIES OF ALL THE NUREMBURG TRIAL INFORMATION ELIMINATING THE NEED FOR COLUMBIA TO COLLECT ANY OF IT SAYS JIM HOOVER DIRECTOR OF THE COLUMBIA LAW LIBRARY LIBRARIES WOULD NO LONGER NEED TO KEEP DOZENS OF COPIES OF ITEMS ON RESERVE FOR LARGE CLASSES MANY STUDENTS COULD READ THEM SIMULTANEOUSLY ON THE COMPUTER MS VOGES NOTES THAT COMPUTERS MAKE LIBRARIES MORE ACCESSIBLE FOR DISABLED RESEARCHERS PROVIDING LARGE SCREENS FOR VISUALLY HANDICAPPED USERS AND ELIMINATING WORRIES ABOUT WHEELCHAIR USERS BEING UNABLE TO REACH UPPER SHELVES STILL INSTITUTIONAL AND ERGONOMIC PRESSURES WILL KEEP THE ALLELECTRONIC LIBRARY AWAY FOR AT LEAST 50 YEARS SAYS JAY LUCKER DIRECTOR OF LIBRARIES AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY BOOKS REMAIN EASIER TO READ THAN A COMPUTER SCREEN AND A VERY GOOD WAY OF PACKAGING INFORMATION HE SAYS SOME PEOPLE TALK OF LIBRARIES BECOMING MUSEUMS OF OLD BOOKS I THINK THAT WON'T HAPPEN FOR A VERY LONG TIME 9302080099 930208 VANGUARD GROUP TO TRIM FEES FOR 16 MUTUAL FUNDS VALLEY FORGE PA MUTUAL FUND GIANT VANGUARD GROUP WHICH DREW RECORD CASH INFLOWS INTO ITS FUNDS IN JANUARY PLANS TO REDUCE FEES AT THE WELLINGTON FUND AND 15 OTHER MUTUAL FUNDS VANGUARD SAID IT IS SEEKING SHAREHOLDER APPROVAL TO REDUCE ADVISORY FEES AT THE 16 FUNDS WHICH INCLUDE STOCK BOND AND BALANCED FUNDS THAT INVEST IN BOTH STOCKS AND BONDS THE AVERAGE FEE ON THESE FUNDS IF APPROVED BY HOLDERS WOULD FALL TO LESS THAN 01 OF ASSETS AT THE FUNDS ADVISORY FEES ARE ONLY ONE ASPECT OF A MUTUAL FUND'S ANNUAL EXPENSES IN AGGREGATE THESE FEE REDUCTIONS WILL SAVE SHAREHOLDERS APPROXIMATELY 39 MILLION SAID VANGUARD CHAIRMAN JOHN C BOGLE THE 16 STOCK AND BOND FUNDS HAVE 31 BILLION IN ASSETS 9302080098 930208 OPTIONS EXCHANGE TO ALTER S&P 500 OPTIONS TRADING CHICAGO TO MESH ITS POPULAR STANDARD & POOR'S 500 STOCKINDEX OPTIONS WITH TRADITIONAL ACCOUNTING PERIODS THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING S&P 500 OPTIONS THAT EXPIRE QUARTERLY THE OPTIONS WILL EXPIRE ON THE FIRST BUSINESS DAY OF THE MONTH FOLLOWING THE END OF A CALENDAR QUARTER THE EXERCISE SETTLEMENT OF THE OPTIONS IS BASED ON THE CLOSING VALUE OF THE S&P 500 INDEX OF 500 LEADING STOCKS ON THE LAST BUSINESS DAY OF THE PRECEDING QUARTER THE CBOE'S CURRENT STOCKINDEX OPTIONS EXPIRE ON THE SATURDAY IMMEDIATELY FOLLOWING THE THIRD FRIDAY OF EACH EXPIRATION MONTH 9302080097 930208 SURVEY FINDS MORE FIRMS INTEND TO STEP UP HIRING WESTBURY NY HIRING ACTIVITY IS SEEN PICKING UP OVER THE NEXT SIX MONTHS IN ALL REGIONS OF THE US AND CANADA A SURVEY BY OLSTEN CORP SUGGESTS ONETHIRD OF 880 COMPANIES POLLED IN JANUARY SAID THEY EXPECT INCREASED HIRING THAT CONTRASTS WITH 27 WHICH FORESAW EMPLOYMENT EXPANSION IN EARLY 1992 AND 21 TWO YEARS AGO THE SURVEY ALSO INDICATES THAT 47 OF THE COMPANIES CONSIDER THEMSELVES UNDERSTAFFED UP FROM 40 A YEAR AGO FIFTYFOUR PERCENT OF THEM ANTICIPATE BEING UNDERSTAFFED IN 1993 DESPITE SOME PLANNED HIRING INCREASES COMPANIES ARE RELUCTANT TO STAFF UP TO FULL LEVELS SAID STUART OLSTEN PRESIDENT OF THE TEMPORARYSERVICES COMPANY THE ECONOMIC RECOVERY HAS QUICKENED BUT COMPANIES ARE STILL SEEKING TO KEEP FIXED COSTS INCLUDING LABOR TO A MINIMUM UNTIL SUSTAINED DEMAND FOR THEIR PRODUCTS AND SERVICES RETURNS THE REGIONS PROJECTING THE STRONGEST HIRING GAINS INCLUDE THE MIDWEST AND THE SOUTHEAST WITH AT LEAST 40 OF THE EMPLOYERS SURVEYED ANTICIPATING INCREASED EMPLOYMENT THE SMALLEST PERCENTAGE OF EMPLOYERS FORECASTING HIRING GAINS WERE IN THE NORTHEAST AND CANADA UNDERSTAFFING LEVELS WERE HIGHEST IN THE NORTHEAST AND THE SOUTH CENTRAL US WITH HALF THE EMPLOYERS SAYING THEY WERE INSUFFICIENTLY STAFFED THE SURVEY SAID BUT MORE EMPLOYERS IN ALL REGIONS REPORTED UNDERSTAFFING THAN A YEAR AGO 9302080096 930208 FRENCH OFFICIAL SEES A SHARP DROP IN RATES FOR FRANCE ELSEWHERE SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH ECONOMICS MINISTER MICHEL SAPIN PREDICTED 1993 WILL BE A YEAR OF SHARP DECLINES IN INTEREST RATES IN FRANCE AND ELSEWHERE IN A RADIO INTERVIEW FRIDAY ONE DAY AFTER GERMANY'S CENTRAL BANK SURPRISED MARKET OPERATORS BY LOWERING ITS KEY INTEREST RATES MR SAPIN SAID MONETARY AUTHORITIES HAVE TO GET RID OF THE ANOMALY OF HIGHER INTEREST RATES BEING OFFERED ON SHORTTERM FUNDS THAN ON LONGTERM DEPOSITS HE DECLINED TO SAY WHEN OR BY HOW MUCH THE BANK OF FRANCE WOULD FOLLOW THE BUNDESBANK'S LEAD IN REDUCING ITS OWN INTEREST RATES MR SAPIN SAID THE BUNDESBANK'S DECISION TO LOWER INTEREST RATES WAS POLITICAL IN THE REAL SENSE OF THE WORD IN THAT IT WASN'T AIMED ONLY AT GERMANY BUT AT THE WHOLE OF EUROPE IT REINFORCES THE WHOLE OF THE EUROPEAN MONETARY SYSTEM IT MEANS THAT PROGRESS TOWARD A SINGLE CURRENCY AND ECONOMIC AND MONETARY UNION IN EUROPE IS ONCE AGAIN POSSIBLE IT WILL GIVE CONFIDENCE TO THE FINANCIAL AND INDUSTRIAL WORLDS AND IT OPENS UP OUR HORIZONS MR SAPIN OBSERVED HE INDICATED THAT HE AND FRENCH PRIME MINISTER PIERRE BEREGOVOY HAVE APPROACHED THE CLINTON ADMINISTRATION ABOUT RAPIDLY ORGANIZING A MEETING OF TOP OFFICIALS OF THE WORLD'S SEVEN LEADING INDUSTRIALIZED NATIONS TO DISCUSS REINFORCED COOPERATION 9302080095 930208 US INVESTIGATES CHARGES OF HOME INSURANCE BIAS WASHINGTON THE JUSTICE DEPARTMENT SAID IT IS INVOLVED IN SEVERAL INVESTIGATIONS INTO CHARGES OF DISCRIMINATION IN HOMEOWNERS INSURANCE COVERAGE THE DISCLOSURE CAME ON THE HEELS OF AN ADVOCACY GROUP'S STUDY OF SOCALLED REDLINING THE STUDY CHARGED THAT PEOPLE LIVING IN LOWINCOME NEIGHBORHOODS PARTICULARLY MINORITIES ARE SYSTEMATICALLY CHARGED HIGHER PREMIUMS OFFERED INFERIOR COVERAGE OR INDISCRIMINATELY DUMPED INTO LESSDESIRABLE POOL POLICIES DEPARTMENT SPOKESWOMAN OBERN RAINEY SAID TWO INVESTIGATIONS ARE BEING CONDUCTED BY THE JUSTICE DEPARTMENT AND ONE JOINTLY WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MS RAINEY WOULDN'T DIVULGE SPECIFICS ON ANY OF THE CASES BUT THE DEPARTMENT IS SAID TO HAVE COLLECTED INFORMATION FROM THE STATE OF WISCONSIN ONE OF FOUR STATES THAT MAKES HOMEOWNERS INSURANCE STATISTICS AVAILABLE THE STUDY ISSUED BY THE URBAN ADVOCACY GROUP THE ASSOCIATION OF COMMUNITY ORGANIZATION FOR REFORM OR ACORN ALSO PROMPTED PLANS FOR CONGRESSIONAL HEARINGS 9302080094 930208 MALAYSIA'S ROYALTY COMES UNDER ATTACK FREER PRESS COINCIDES WITH BID TO REMOVE FEUDAL GLITZ BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA THERE ARE 20 MONARCHS IN THE WORLD TODAY AND HALF OF THEM LIVE IN MALAYSIA DEPUTY PRIME MINISTER ABDUL GHAFAR BABA GOT PLENTY OF APPLAUSE FOR THAT LINE A DECADE AGO DURING THE MALAYSIAN GOVERNMENT'S FIRST PUBLIC ROW WITH THE COUNTRY'S CODDLED ROYALTY AND NOW HE'S USING IT AGAIN IN A RETURN BOUT BUT IN THIS ROUND MR GHAFAR'S WORDS ARE PACKING MORE PUNCH WITH THE HELP OF A LESSBRIDLED PRESS FOR THE FIRST TIME THE GOVERNMENTGUIDED NEWS MEDIA IN MALAYSIA HAVE BEEN GIVEN CONSIDERABLE LEEWAY TO TELL TALES ABOUT JUST HOW WEALTHY AND PAMPERED THE COUNTRY'S MONARCHY HAS BECOME SINCE INDEPENDENCE IN 1957 INDEED ROYAL FAMILIES HAVE BEEN AMONG THE PRIME BENEFICIARIES OF GOVERNMENT POLICIES TO ERADICATE POVERTY THAT TOOK EFFECT DURING THE PAST TWO DECADES NINE IN ALL THE SULTANS SELECT ONE OF THEIR PEERS EVERY FIVE YEARS TO REIGN AS KING THE INSTITUTIONAL POMP IS THERE THE POWER IS NOT IN MANY WAYS THE SULTANS ARE PROPS FOR A FEUDAL LEGACY THAT IS INCREASINGLY IRRELEVANT FOR THIS RAPIDLY MODERNIZING COUNTRY BUT IN OTHER WAYS THEY SYMBOLIZE THE SPECIAL STATUS OF THE MALAY MAJORITY AND ARE CHARGED WITH PROTECTING THEIR ISLAMIC FAITH CUSTOMS AND CONSTITUTIONAL PRIVILEGES TO THE EXTENT THAT THE SULTANS ARE STILL REVERED BY MALAYS PRIME MINISTER MAHATHIR MOHAMAD HAS FOUND THEM TO BE A POLITICAL IRRITANT AND A FINANCIAL BANE WHENEVER THEY HAVE TRIED TO INFLUENCE VOTERS OR TO SECURE FAVORABLE LUCRATIVE BUSINESS DEALS INDEED SUCH DEALS GENERALLY HAD BEEN OVERLOOKED AS THE COST FOR KEEPING THE ROYALTY IN LINE AND THE MALAY MAJORITY IN THE PRIME MINISTER'S POLITICAL CAMP BUT THOSE COSTS HAVE BECOME EXCEEDINGLY STEEP THE BARE MINIMUM FOR STATE GOVERNMENT SUPPORT IS ABOUT US76 MILLION ANNUALLY THE POLITICAL COST WAS EVIDENT WHEN THE SULTAN OF KELANTAN USED HIS INFLUENCE TO SWING CONTROL OF THE STATE TO THE OPPOSITION IN THE LAST GENERAL ELECTION IN 1990 DR MAHATHIR THE PRIME MINISTER SEEKS TO REMOVE THE FEUDAL GLITZ AND TO RETURN THE SOCALLED RULERS TO THEIR TRADITIONAL FUNCTIONS NAMELY AS RUBBER STAMPS FOR ADMINISTRATIVE DECISIONS AND SYMBOLIC UPHOLDERS OF THE GOVERNMENT IN THE MINDS OF THE MALAYS THE ALLEGED BEATING LAST YEAR OF A FIELDHOCKEY COACH BY THE SULTAN OF JOHOR GAVE THE PRIME MINISTER THE PRETEXT TO INITIATE A DRIVE TO AMEND THE CONSTITUTION AND HAVE THE SULTANS STRIPPED OF THEIR ABOVETHELAW STATUS AND MANY OF THEIR FINANCIAL PERQUISITES LATE LAST MONTH PARLIAMENT APPROVED AMENDMENTS TO THE CONSTITUTION THAT HAVE BEEN SUBMITTED TO THE KING FOR HIS ROYAL ASSENT HE HAS 30 DAYS TO APPROVE THE AMENDMENTS IF HE DOESN'T PARLIAMENT WILL AGAIN DEBATE AND VOTE ON THE BILL WHICH COULD BECOME LAW WITHOUT ROYAL ASSENT BUT POSSIBLY FACE A CHALLENGE IN THE SUPREME COURT THE PRIME MINISTER FACES CONSIDERABLE OPPOSITION FROM ROYALISTS WHO FIND HIS ASSAULT ON THE MONARCHY UNSEEMLY BUT EVEN THE SULTANS' SUPPORTERS CONCEDE THAT THE ROYALTY HAS GOTTEN OUT OF HAND AND THAT THE INSTITUTION IS A HEFTY FINANCIAL DRAIN ON THE COUNTRY MALAYSIANS HAVE KNOWN FOR YEARS OF THE MANY PALACES AND FLEETS OF LUXURY CARS ALL IMPORTED DUTY FREE TO FERRY THE SULTANS AND THEIR FAMILIES FROM ONE ESTATE TO THE NEXT NOW THE COUNTRY'S COMMONERS ARE LEARNING FAR MORE THAN EVER BEFORE ABOUT THEIR SULTANS' RICH AND SOMETIMES INFAMOUS LIFESTYLES AMONG THE RECENT PUBLIC REVELATIONS ABOUT THE COUNTRY'S NINE SULTANS THEY OWN FOUR TIMES AS MANY POLO PONIES AS MALAYSIA AIRLINES OWNS PLANES AND ARE EACH ENTITLED TO RESIDE IN MORE THAN SEVEN PALACES PAHANG SULTAN AHMAD SHAH IBNI ABU BAKAR REGARDED AS ONE OF THE COUNTRY'S WEALTHIEST RULERS HAS AT LEAST A DOZEN PALACES HIS OWN BOEING 727 AND 200 POLO PONIES KEPT IN AIRCONDITIONED STABLES THEY HAVE BEEN GRANTED MORE LAND AND LOGGING CONCESSIONS THAN CAN BE TRAVERSED IN WEEKS OF HIKING PAHANG OFFICIALS CONTEND THAT THE PRIMARY SOURCE OF THEIR SULTAN'S WEALTH HAS BEEN THE LAND AND THE 14659 HECTARES OF PRIME TIMBER CONCESSIONS ALLOCATED TO HIM DURING THE PAST FIVE YEARS THE GOVERNMENT'S ESTIMATED VALUE OF THE CONCESSIONS ALONE IS M270 MILLION US1031 MILLION THEY ARE GUARANTEED MILLIONS OF DOLLARS IN PROFITS FROM SECRET ALLOTMENTS OF SHARES IN PUBLICLY LISTED COMPANIES THEY BORROW MILLIONS FROM BANKS AND OFTEN DON'T REPAY SOME OF THEM GAMBLE AND CELEBRATE CHRISTIAN HOLIDAYS DESPITE THE PROHIBITIONS OF THEIR ISLAMIC FAITH THEY DAILY ASK THE GOVERNMENT FOR MORE HANDOUTS THERE ARE ALSO CRIMES FOR WHICH THE SULTANS CANNOT BE CHARGED UNTIL DR MAHATHIR SUCCEEDS IN AMENDING THE CONSTITUTION MURDERS AND ASSAULTS NOW HAVE BEEN REPORTED ILLEGALLY IMPORTING LUXURY CARS AND SELLING THEM TO FRIENDS AND FAMILY HAS BECOME A COMMON CASHRAISING PRACTICE TAKING BRIBES AND KICKBACKS IN EXCHANGE FOR THEIR INFLUENCE WITH THE GOVERNMENT OCCURS ROUTINELY CONFERRING HONORIFIC TITLES ON COMMONERS FOR FEES FREQUENTLY TAKES PLACE AND HAPHAZARD DESTRUCTION OF FOREST RESERVES AND SEAFRONT FOR FINANCIAL GAIN IS ON THE RISE TALES OF BIZARRE ROYAL BEHAVIOR AND CRUELTY ARE BEING SWAPPED AND PUBLISHED THROUGHOUT MALAYSIA DEFENSE MINISTER DATUK NAJIB RAZAK SAID LAST WEEK THAT A SULTAN HAD ORDERED A COMMANDER IN THE ROYAL MALAYSIAN NAVY TO JUMP FROM HIS SHIP AND SWIM TO SHORE AFTER THE WAKE FROM HIS VESSEL THREW THE SULTAN FROM HIS WINDSURFER ONCE ON SHORE THE SULTAN DIPPED THE COMMANDER'S HEAD INTO THE SURF THE MINISTER DECLINED TO IDENTIFY THE SULTAN THE ROYALTY'S APPETITE FOR RICHES AND MISBEHAVIOR APPEARS LIMITLESS JUDGING BY THE UNPRECEDENTED OUTPOURING OF CRITICAL STORIES LETTERS TO THE NEWS MEDIA AND PUBLISHED ACCOUNTS BY POLITICAL LEADERS SINCE THE STORY ABOUT THE ALLEGED THRASHING OF THE FIELDHOCKY COACH SURFACED TWO MONTHS AGO UNSHACKLED FROM THE EARLIER STRICT INTERPRETATION OF MALAYSIA'S SEDITION ACT NEWSPAPER EDITORS HAVE BEEN TOLD THAT COVERAGE OF THE ROYAL HOUSEHOLDS IS FAIR GAME AS LONG AS THE NEWS MEDIAS DOESN'T PUSH FOR ABOLISHING THE MONARCHY THE NEWSPAPERS HAVE STOPPED JUST SHORT OF THAT IT'S OBVIOUS WHAT THE PRESS IS DOING SAYS CHANDRA MUZAFFAR A PROMINENT SOCIAL AND POLITICAL COMMENTATOR WHO GENERALLY SUPPORTS DR MAHATHIR'S MOVES TO STRIP THE SULTANS OF THEIR IMMUNITY FROM PROSECUTION AND OTHER ENTITLEMENTS THEY IN THE GOVERNMENT ARE GETTING THEIR HOUNDS TOGETHER AND TELLING THEM TO GO AFTER THE RULERS THE SULTANS SELDOM DEAL DIRECTLY WITH THE NEWS MEDIA INCLUDING THE WALL STREET JOURNAL SO THEY HAVEN'T REBUTTED DIRECTLY THE ALLEGATIONS AGAINST THEM ROYALISTS AND MINOR MEMBERS OF THE ROYAL HOUSES ARE LEFT TO DEFEND THE PATRIARCHS AND ATTEMPT TO PERSUADE THE RULERS TO MEET WITH SELECT REPORTERS SO FAR THEY HAVE FAILED 9302080093 930208 INTERNATIONAL BRAZIL'S FRANCO OPENS WAY FOR RELAUNCH OF BEETLE SPECIAL TO THE WALL STREET JOURNAL BRASILIA BRAZIL PRESIDENT ITAMAR FRANCO PAVED THE WAY FOR AUTO MAKERS TO RELAUNCH THE BEETLE IN JULY OFFERING TAX BREAKS IN A BID TO JUMPSTART BRAZIL'S SPUTTERING AUTO INDUSTRY MR FRANCO SIGNED A PROTOCOL WITH AUTOLATINA A JOINT VENTURE BETWEEN VOLKSWAGEN AG AND FORD MOTOR CO ELIMINATING AN INDUSTRIAL PROPERTY TAX AND A TAX ON PROFITS TO ALLOW THE AUTO MAKER TO SELL THE BEETLE KNOWN HERE AS THE FUSCA FOR 6850 AUTOLATINA PRESIDENT PIERREALAIN DE SMEDT SAID THE COMPANY WOULD INVEST 30 MILLION AND CREATE 800 NEW JOBS AT A REFURBISHED AUTO PLANT IN SAO PAULO HE SAID 200 BEETLES A DAY ALL WITH IMPROVED EMISSION CONTROLS WOULD ROLL OFF THE ASSEMBLY LINE PRESIDENT FRANCO ARGUED THAT BRAZIL NEEDED THE LOVE BUG BACK TO GIVE THE INFLATIONWRACKED MIDDLECLASS AN AFFORDABLE CAR THE CHEAPEST CAR ON THE MARKET IN BRAZIL A CHEVROLET CHEVETTE COSTS 8500 THE LABOR MINISTRY SAYS JUST 05 OF BRAZILIANS BUY NEW CARS THE BEETLE FIRST PRODUCED IN GERMANY IN 1935 BECAME A MASCOT OF BRAZIL'S ECONOMIC MIRACLE OF THE 1970S ACCOUNTING FOR 48 OF BRAZILIAN CARS IN 1972 PROHIBITIVELY HIGH TAXES FORCED IT INTO RETIREMENT IN 1986 9302080092 930208 FLEET MORTGAGE IS EXPECTED TO SETTLE ISSUE OVER HOME MORTGAGE ESCROW ACCOUNTS BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL ATTORNEYS GENERAL FROM 26 STATES ARE EXPECTED TO ANNOUNCE A SETTLEMENT TODAY UNDER WHICH FLEET MORTGAGE GROUP INC WILL REFUND TO HOMEOWNERS ANY EXCESS AMOUNTS IN THEIR MORTGAGE ESCROW ACCOUNTS ACCORDING TO PEOPLE FAMILIAR WITH THE AGREEMENT THE SETTLEMENT WITH FLEET MORTGAGE ONE OF THE LARGEST MORTGAGE BANKING COMPANIES IN THE US FOLLOWS A SIMILAR AGREEMENT LAST YEAR BY STATES WITH GMAC MORTGAGE CORP A UNIT OF GENERAL MOTORS CORP STATE OFFICIALS ESTIMATE THAT FLEET MORTGAGE CUSTOMERS COULD RECEIVE AS MUCH AS 150 MILLION IN REFUNDS AND REDUCED MONTHLY PAYMENTS REFUNDS WILL BE MADE FROM THE CUSTOMERS' OWN MORTGAGE ACCOUNTS AND WON'T HAVE A MATERIAL FINANCIAL EFFECT ON FLEET MORTGAGE NOTED ANDREW WOODWARD JR CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPANY IN COLUMBIA SC FLEET MORTGAGE IS 81OWNED BY FLEET FINANCIAL GROUP INC PROVIDENCE RI MR WOODWARD SAID HE DOESN'T KNOW HOW THE 150 MILLION ESTIMATE WAS CALCULATED BUT EXPECTS THAT IT IS AT THE HIGH END OF THE RANGE OF ANY AMOUNT THAT WILL BE REFUNDED FLEET MORTGAGE SERVICES 1034000 MORTGAGES THROUGHOUT THE US ONLY CUSTOMERS WITH EXCESS AMOUNTS IN THEIR ESCROW ACCOUNTS WILL RECEIVE REFUNDS ON THE COMPLETION OF AN ANALYSIS OF ACCOUNTS ALTHOUGH THE SETTLEMENT WON'T AFFECT FLEET MORTGAGE FINANCIALLY IT COMES AT A TIME THAT FLEET FINANCIAL IS UNDER FIRE FOR ALLEGATIONS THAT IT PARTICIPATED IN A SCHEME TO DEFRAUD LOWINCOME HOMEOWNERS WITH HIGHRATE HOME EQUITY LOANS CLASSACTION SUITS HAVE BEEN FILED AGAINST IT IN GEORGIA CHARGING THAT THE COMPANY VIOLATED THE STATE'S USURY LAWS FLEET FINANCIAL HAS DENIED THOSE ALLEGATIONS WHICH AREN'T RELATED TO THE ESCROW ISSUE BUT IT HAS PROPOSED A MULTIMILLIONDOLLAR PROGRAM TO SIGNIFICANTLY REDUCE INTEREST RATES ON MORTGAGE LOANS WITH FEES AND POINTS DEEMED BURDENSOME TO SOME CUSTOMERS THE ESCROWACCOUNT SETTLEMENTS WITH FLEET AND EARLIER GMAC STEM FROM A DISPUTE BETWEEN MUCH OF THE MORTGAGE INDUSTRY AND STATE OFFICIALS OVER HOW REQUIRED AMOUNTS ARE CALCULATED MOST MORTGAGE LENDERS REQUIRE HOMEOWNERS TO PAY INTO MORTGAGE ESCROW ACCOUNTS TO ENSURE THAT PAYMENTS FOR REAL ESTATE TAXES INSURANCE AND OTHER COSTS ARE MADE ATTORNEYS GENERAL INVESTIGATING ESCROW ACCOUNTS MAINTAIN THAT MANY LENDERS REQUIRE HOMEOWNERS TO PAY MORE THAN IS NECESSARY INTO THE ACCOUNTS IN MANY STATES LITTLE OR NO INTEREST IS PAID TO THE CONSUMER BY THE LENDER ON THESE ACCOUNTS THE SETTLEMENT WITH FLEET MORTGAGE REQUIRES IT TO CHANGE THE METHOD IT USES TO CALCULATE REQUIRED ESCROW PAYMENTS A RECENT STUDY BY THE FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ESTIMATED THAT MORE THAN 10 OF HOME MORTGAGES HAVE HIGHER ESCROW ACCOUNTS THAN IS NECESSARY BUT IT ALSO FOUND THAT MANY ESCROW ACCOUNTS PERHAPS EVEN A HIGHER PERCENTAGE HAVE LESS MONEY THAN LENDERS COULD LEGALLY REQUIRE AND MORTGAGE COMPANIES OFTEN HAVE TO ADVANCE THEIR OWN FUNDS TO PAY PORTIONS OF THE HOMEOWNERS TAX AND INSURANCE BILLS 9302080090 930208 COFFEE PRODUCERS TO SEEK CLINTON SUPPORT ON PRICES LONDON COFFEEPRODUCING NATIONS INTEND TO LOBBY TO PERSUADE PRESIDENT CLINTON TO AGREE ON A PRICE STABILIZATION ACCORD AFTER TALKS AIMED AT PRODUCING SUCH AN AGREEMENT ENDED WITHOUT AN ACCORD AS EXPECTED DELEGATES MADE LITTLE PROGRESS ON NEGOTIATIONS TOWARD A NEW COFFEE AGREEMENT ANOTHER SESSION IS SCHEDULED TO BEGIN MARCH 21 BUT UNLESS THE US AND PRODUCING NATIONS ARE WILLING TO COMPROMISE ON SOME IMPORTANT ISSUES THAT MEETING ALSO IS LIKELY TO FAIL DELEGATES SAID BRAZILIAN AND NICARAGUAN DELEGATES CHARGED THAT THE US ISN'T INTERESTED IN REACHING A SETTLEMENT ANYTIME SOON THE CLINTON ADMINISTRATION IS BUSY WITH OTHER ISSUES SO THE US DELEGATION IS BOWING TO COFFEE MANUFACTURER LOBBYISTS WHO PREFER A FREE MARKET SAID DAVID ROBLETO LANG PRESIDENT OF THE NIRAGUAN NATIONAL COFFEE COMMISSION HE SAID THE US DOESN'T APPEAR TO HAVE THE POLITICAL WILL TO HELP HARD PRESSED THIRD WORLD NATIONS THAT RELY ON COFFEE EXPORTS BUT MILES FRECHETTE HEAD OF THE US DELEGATION COUNTERED WE WANT A WORKABLE MARKETORIENTATED ACCORD THAT TAKES TIME TO NEGOTIATE HE SAID PRODUCERS DON'T APPRECIATE THAT COFFEE IS WELL DOWN ON THE LIST OF THE NEW ADMINISTRATION'S AGENDA 9302080089 930208 WHO'S NEWS MCDONALD'S CORP MCDONALD'S CORP OAK BROOK ILL HALL ADAMS JR FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LEO BURNETT CO WAS NAMED A DIRECTOR OF THIS FASTFOOD CHAIN EXPANDING THE BOARD TO 16 MEMBERS 9302080088 930208 COUNTRYWIDE MORTGAGE REPORTS 83 DECLINE IN FOURTHQUARTER NET PASADENA CALIF COUNTRYWIDE MORTGAGE INVESTMENTS INC REPORTED A DECLINE OF 83 IN FOURTHQUARTER NET EARNINGS TO 398000 OR THREE CENTS A SHARE DUE MOSTLY TO HIGH PREPAYMENTS FROM A WAVE OF REFINANCING BY HOMEOWNERS THE REAL ESTATE INVESTMENT TRUST'S NET EARNINGS FOR THE YEAREARLIER PERIOD WERE 24 MILLION OR 17 CENTS A SHARE FOR THE YEAR COUNTRYWIDE REPORTED NET EARNINGS PLUNGED 54 TO 5 MILLION OR 36 CENTS A SHARE FROM 109 MILLION OR 78 CENTS A SHARE IN 1991 THE COMPANY ALSO ANNOUNCED THE FORMATION OF A MORTGAGE LOAN CONDUIT WHICH WILL BUY JUMBO MORTGAGES FROM SELLERS WHO WILL GENERALLY RETAIN SERVICING RIGHTS THE COMPANY HAS ABOUT 64 MILLION AVAILABLE TO INVEST IN THE NEW VENTURE MOST OF WHICH WAS RAISED BY SELLING ITS ADJUSTABLERATE MORTGAGEBACKED SECURITIES PORTFOLIO SEPARATELY THE COMPANY APPOINTED LYLE E GRAMLEY 66 YEARS OLD TO THE BOARD MR GRAMLEY IS A CONSULTING ECONOMIST WITH THE MORTGAGE BANKERS ASSOCIATION OF AMERICA ROBERT J DONATO 53 RECENTLY RESIGNED FROM COUNTRYWIDE MORTGAGE'S BOARD TO JOIN COUNTRYWIDE CREDIT INDUSTRIES INC THE BOARD HAS SINCE VOTED TO REDUCE THE NUMBER OF BOARD MEMBERS TO FIVE FROM SIX COUNTRYWIDE MORTGAGE'S STOCK CLOSED FRIDAY AT 5625 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9302080086 930208 INTERNATIONAL MEXICO ASKS IBM FOR PROOF OF ALLEGED BRIBE REQUEST MEXICO CITY THE MEXICAN GOVERNMENT WENT ON THE OFFENSIVE IN THE GROWING DISPUTE WITH SIX MULTINATIONALS OVER ALLEGED IRREGULARITIES IN THE AWARDING OF AIRPORTMODERNIZATION CONTRACTS IN THE LATEST TURN OF EVENTS THE MEXICAN COMPTROLLER'S SECRETARIAT ASKED THAT AN INDEPENDENT AGENT OF INTERNATIONAL BUSINESS MACHINES CORP COME TO MEXICO WITH PROOF THAT HE WAS ASKED FOR A 1 MILLION BRIBE TO SECURE AN IBM CONTRACT TO REVAMP AIRTRAFFIC CONTROL SYSTEMS AT SEVERAL MEXICAN AIRPORTS IF NO PROOF IS SUBMITTED THE MEXICAN COMPTROLLER THREATENED LEGAL ACTION AGAINST THE IBM AGENT FOR DAMAGES TO THE MEXICAN GOVERNMENT'S REPUTATION THE DISPUTE FOCUSES ON CONTRACTS VALUED AT 21 MILLION TO REVAMP RADAR AND AIRTRAFFIC CONTROL SYSTEMS AT VARIOUS AGING AND OVERTAXED MEXICAN AIRPORTS THE AIRTRAFFIC CONTRACT DISPUTE IS UNUSUAL BECAUSE OF THE NUMBER OF MULTINATIONALS THAT HAVE FILED DOCUMENTED PROTESTS AGAINST THE AWARD PROCESS OVERSEEN BY MEXICO'S SECRETARIAT OF COMMUNICATIONS AND TRANSPORTATION THOSE WRITTEN PROTESTS HOWEVER DIDN'T RAISE BRIBE ALLEGATIONS MOST OF THE US COMPANIES CONTEND THEIR TECHNOLOGY WAS SUPERIOR TO THE WINNING BIDS IBM AND ITS INDEPENDENT AGENT COULDN'T BE REACHED TO COMMENT 9302080085 930208 REVIEW & OUTLOOK EDITORIAL ASIDES THE PRICE OF PEACE LEAVE IT TO THE NATIONAL EDUCATION ASSOCIATION TO FIND A WAY TO THROW TAXPAYERS' MONEY AT ANY PROBLEM THE BIG TEACHERS' UNION HAS GOTTEN AROUND TO SCHOOL AND CAMPUS VIOLENCE BUT IT WON'T SIT STILL FOR SIMPLY BOOTING OUT AND LOCKING UP THE THUGS INSTEAD IT WANTS 500 MILLION FOR A MORE ENLIGHTENED APPROACH INCLUDING SAFETYAWARENESS PROGRAMS AND SPECIAL INDIVIDUALIZED INSTRUCTION FOR THE POOR DEARS AFTER THAT OF COURSE THE UNIVERSITIES CAN DEINSTITUTIONALIZE THEM INTO SOCIETY 9302080084 930208 WHO'S NEWS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO MARTIN G MAND 56 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT THE SECOND AT THIS TELECOMMUNICATONS EQUIPMENT COMPANY HE CONTINUES AS CHIEF FINANCIAL OFFICER 9302080083 930208 US SAYS AUSTRALIA BROKE BILATERAL AVIATION ACCORD WASHINGTON TRANSPORTATION SECRETARY FEDERICO PENA SAID AUSTRALIA HAS BREACHED ITS BILATERAL AVIATION AGREEMENT WITH THE US BY RESTRICTING THE NUMBER OF PASSENGERS NORTHWEST AIRLINES CAN CARRY BETWEEN OSAKA JAPAN AND SYDNEY AUSTRALIA THE US WILL DECIDE WHETHER TO IMPOSE RETALIATORY SANCTIONS AGAINST QANTAS AIRWAYS AUSTRALIA'S NATIONAL CARRIER DEPENDING ON THE OUTCOME OF USAUSTRALIAN TALKS THAT BEGIN TODAY IN CANBERRA IF WE CANNOT SETTLE THIS MATTER THROUGH NEGOTIATIONS WE WILL NOT HESITATE TO MOVE FORWARD WITH ADDITIONAL ACTIONS MR PENA SAID UNDER THE USAUSTRALIA BILATERAL AGREEMENT HE SAID NORTHWEST A UNIT OF WINGS HOLDINGS INC IS ALLOWED TO OPERATE FLIGHTS FROM THE US TO AUSTRALIA VIA INTERMEDIATE COUNTRIES WITHOUT ANY RESTRICTIONS ON PASSENGER TRAFFIC NORTHWEST OPERATES THREE NEW YORKOSAKASYDNEY FLIGHTS A WEEK THE AIRLINE COMPLAINED THAT THE AUSTRALIANS ARE LIMITING THE NUMBER OF SYDNEYBOUND PASSENGERS IT CAN PICK UP IN OSAKA AND THE NUMBER OF OSAKABOUND PASSENGERS IT CAN PICK UP IN SYDNEY THEY HAVE IMPOSED A 50 LIMIT ON OSAKASYDNEY PASSENGERS ON TWO OF THE FLIGHTS WHILE BARRING SUCH PASSENGERS ALTOGETHER ON THE THIRD 9302080082 930208 SARA LEE APPAREL UNITS SIGN OLYMPIC GAMES PACTS ATLANTA TONS OF TSHIRTS AND SWARMS OF SWEATSHIRTS COULD TRANSLATE INTO MILLIONS OF DOLLARS FOR THE 1996 SUMMER OLYMPICS TO BE HELD HERE SARA LEE CORP ALREADY A SPONSOR OF THE 1996 GAMES AT A COST OF SOME 40 MILLION SAID ITS CHAMPION AND HANES APPAREL DIVISIONS SIGNED A LICENSING AGREEMENT WITH THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES AND THE US OLYMPIC COMMITTEE UNDER THE PACT THE TWO UNITS WILL BEGIN MARKETING SHIRTS SPORTS APPAREL AND OTHER CLOTHING THAT CARRY THE SYMBOLS OF THE 1994 WINTER GAMES IN LILLEHAMMER NORWAY THE 1996 SUMMER GAMES IN ATLANTA AND THE US OLYMPIC TEAMS SARA LEE SAID IT EXPECTED TO GENERATE HUNDREDS OF MILLIONS OF DOLLARS IN SALES FROM THE ITEMS A MINIMUM OF 20 MILLION OF WHICH WILL FLOW TO THE ATLANTA AND US OLYMPIC COMMITTEES SAID JACK WARD A SENIOR VICE PRESIDENT AT SARA LEE A CHICAGO CONSUMERPRODUCTS CONCERN IN ADDITION TO SARA LEE NATIONSBANK CORP HOME DEPOT INC AND INTERNATIONAL BUSINESS MACHINES CORP AGREED TO BE MAJOR SPONSORS OF THE 1996 GAMES IN ATLANTA WHICH WILL MARK THE 100TH ANNIVERSARY OF THE MODERN OLYMPICS 9302080081 930208 CALGENE SUES ENZO SEEKING TO VOID PATENT ON GENETIC TECHNOLOGY DAVIS CALIF FIRING OFF A PREEMPTIVE CHALLENGE TO PROTECT ITS GENETICALLY ENGINEERED SLOWROTTING TOMATO CALGENE INC FILED SUIT AGAINST ENZO BIOCHEM INC SEEKING TO HAVE ITS RIVAL'S PENDING PATENT FOR GENETIC ENGINEERING DECLARED INVALID THE SUIT FILED IN US DISTRICT COURT HERE ALSO SEEKS UNSPECIFIED DAMAGES FROM ENZO ALLEGING THAT THE COMPANY HAS MADE STATEMENTS CLAIMING CALGENE'S NEW TOMATO WOULD BE COVERED BY ENZO'S PATENT AND SUBJECT TO LICENSING FEES CALGENE'S SUBSIDIARY CALGENE FRESH PLANS TO INTRODUCE THE GENETICALLY ENGINEERED TOMATO LATER THIS YEAR UNDER THE NAME FLAVR SAVR IT USES A SOCALLED ANTISENSE TECHNOLOGY TO REDUCE SPOILAGE CALGENE HAS ITS OWN ANTISENSE PATENT WHICH IT SAID ISN'T EFFECTED BY THE SUIT ROGER SALQUIST CALGENE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THAT CALGENE DOES NOT CONSIDER THE ENZO PATENT TO BE VALID AND WE CERTAINLY DON'T PLAN TO ALTER OUR COMMERCIALIZATION PLAN ENZO BASED IN FARMINGDALE NY SAID IT HADN'T YET SEEN THE CALGENE COMPLAINT AND WOULDN'T COMMENT ON THE SUIT ENZO SAID IT WAS ISSUED A PATENT LAST WEEK IN EUROPE COVERING ANTISENSE TECHNOLOGY AND THAT ITS 1983 PATENT APPLICATIONS IN THE US HAD BEEN ALLOWED WITH PATENTS EXPECTED TO BE ISSUED SHORTLY 9302080080 930208 WHAT'S NEWS WORLDWIDE WOOD'S WITHDRAWAL SPARKED CHARGES OF A DOUBLE STANDARD THE FORCED WITHDRAWAL OF KIMBA WOOD AS A CONTENDER FOR ATTORNEY GENERAL ON FRIDAY WAS CRITICIZED BY WOMEN WHO CONTEND THAT SHE AND ZOE BAIRD BEFORE HER WERE HELD TO TOUGHER SCRUTINY THAN MEN CHOSEN FOR CABINET POSTS BOTH WOMEN HIRED ILLEGAL ALIENS AS NANNIES BUT WOOD DIDN'T VIOLATE ANY LAWS THE NATIONAL ORGANIZATION FOR WOMEN IS CALLING UPON MEMBERS OF THE CABINET CONGRESS AND SUPREME COURT TO DISCLOSE DETAILS ABOUT THEIR OWN CHILDCARE ARRANGEMENTS COMMERCE SECRETARY BROWN ACKNOWLEDGED YESTERDAY THAT HE FAILED TO PAY SOCIAL SECURITY TAXES ON HIS HOUSEKEEPER FOR ABOUT FIVE YEARS THE WHITE HOUSE IS STUDYING BUDGETCUTTING OPTIONS THAT INCLUDE A MAJOR RESTRUCTURING OF THE NATION'S SPACE PROGRAM AND STRETCHING OUT DEVELOPMENT OF THE SUPERCOLLIDER ATOM SMASHER UNDER CONSTRUCTION IN TEXAS THE SPACE STATION FREEDOM ALREADY FACING COST OVERRUNS IS A POTENTIAL TARGET ASPIN URGED THE WESTERN ALLIANCE TO BRING THE FULL FORCE OF OUR INFLUENCE TO BEAR TO HELP RESOLVE THE CRISIS IN THE BALKANS THE DEFENSE SECRETARY WHO HELD MEETINGS WITH WESTERN LEADERS IN GERMANY OVER THE WEEKEND SAID THAT THE CLINTON ADMINISTRATION PROBABLY WILL ANNOUNCE ITS POSITION ON BOSNIA SOMETIME THIS WEEK AGRICULTURE SECRETARY ESPY PROPOSED A SERIES OF STEPS TO IMPROVE FOOD SAFETY AFTER A RECENT OUTBREAK OF ILLNESS AMONG PEOPLE WHO ATE UNDERCOOKED MEAT AT THE JACK IN THE BOX FASTFOOD CHAIN THE RECOMMENDATIONS INCLUDE EFFORTS TO PERMIT LOWLEVEL IRRADIATION OF MEAT TO ELIMINATE POSSIBLE MICROBIOLOGICAL CONTAMINANTS SOUTH AFRICAN OFFICIALS ARE WORKING WITH THE AFRICAN NATIONAL CONGRESS ON A PLAN TO DELAY INTRODUCTION OF FULL DEMOCRACY UNTIL THE TURN OF THE CENTURY POLITICAL SOURCES SAID THE PROPOSAL WHICH IS TAKING SHAPE IN SECRET TALKS WOULD CALL FOR A MULTIPARTY INTERIM GOVERNMENT THAT WOULD RULE FOR FIVE YEARS AFTER THE FIRST DEMOCRATIC ELECTIONS TWO REPORTS CRITICIZED THE CIA FOR MISHANDLING ITS ROLE IN THE INVESTIGATION OF THE BANCA NAZIONALE DEL LAVORO CASE LEADING TO RENEWED CALLS FOR A SPECIAL PROSECUTOR THE REPORTS SAID US INTELLIGENCE AGENCIES HAD LITTLE DATA ABOUT DEALINGS BETWEEN BNL'S ATLANTA BRANCH AND IRAQ'S ARMSPROCUREMENT NETWORK EPA ADMINISTRATOR BROWNER SAID THAT SHE IS WITHDRAWING FROM A DISPUTE OVER AN INCINERATOR IN EAST LIVERPOOL OHIO AFTER LEARNING THAT HER HUSBAND'S EMPLOYER A PUBLICINTEREST LOBBYING ORGANIZATION IS INVOLVED IN THE CASE A UNION WRONGLY DENIED HEALTH INSURANCE BENEFITS TO A MAN WITH THE AIDS VIRUS AN EQUAL EMPLOYMENT OPPORTUNITY COMMISSION OFFICIAL IN NEW YORK HAS RULED THE DECISION COULD HELP ENSURE MEDICAL BENEFITS FOR PEOPLE WITH AIDS A 31YEAROLD MAN CRASHED HIS CAR THROUGH A SECURITY FENCE AT PENNSYLVANIA'S THREE MILE ISLAND NUCLEAR POWER PLANT AND HID IN A TURBINE BUILDING FOR FOUR HOURS BEFORE BEING ARRESTED POLICE SAID ISRAELI FORCES KILLED A 16YEAROLD BOY IN A REFUGEE CAMP IN EAST JERUSALEM BRINGING TO SEVEN THE PALESTINIAN DEATH TOLL IN THREE DAYS OF UNREST A TOTAL OF 19 PALESTINIANS WERE WOUNDED YESTERDAY IN CLASHES WITH TROOPS IN THE GAZA STRIP ZAIRE'S PRESIDENT MOBUTU REQUESTED A JUDICIAL INQUIRY INTO WHETHER HIS RIVAL PRIME MINISTER TSHISEKEDI INCITED RECENT RIOTS THAT KILLED AN ESTIMATED 1000 PEOPLE ON FRIDAY MOBUTU ASKED THE TRANSITIONAL PARLIAMENT TO CHOOSE A NEW PREMIER BUT THE LEGISLATORS HAVE REFUSED IRAQ WARNED IRAN OF POSSIBLE RETALIATION FOR WHAT BAGHDAD CHARGED WERE TWO SHOOTING ATTACKS BY IRANIAN INFILTRATORS LAST MONTH BAGHDAD'S FOREIGN MINISTRY SAID IT HAD FILED A FORMAL PROTEST WITH TEHRAN DIED ARTHUR ASHE 49 TENNIS PLAYER AND HUMANRIGHTS ACTIVIST WHO WAS THE ONLY BLACK MAN EVER TO WIN THE WIMBLEDON CHAMPIONSHIP AND THE US OPEN SATURDAY IN NEW YORK OF AIDSRELATED PNEUMONIA JOSEPH MANKIEWICZ 83 ACADEMY AWARDWINNING WRITER AND DIRECTOR WHOSE FILMS INCLUDED ALL ABOUT EVE A LETTER TO THREE WIVES AND SUDDENLY LAST SUMMER FRIDAY IN MOUNT KISCO NY 9302080079 930208 AMERICAN AIRLINES' CRANDALL EXPECTS '93 TO BE YEAR OF RETRENCHMENT AUSTERITY BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN AIRLINES' CHAIRMAN ROBERT L CRANDALL SAID 1993 WILL BE ANOTHER YEAR OF RETRENCHMENT AND AUSTERITY FOR THE AMR CORP UNIT AS THE ONCE HIGHFLYING AIRLINE TRIES TO STEM ITS MASSIVE LOSSES MR CRANDALL IN A SPEECH TO FINANCIAL ANALYSTS IN NAPLES FLA SAID THE COMPANY IS CONSIDERING RETURNING OR RETIRING OLDER MORE EXPENSIVE AIRCRAFT PRIMARILY USED FOR DOMESTIC ROUTES AMERICAN MAY ALSO PULL OUT OF SOME MARKETS WHERE TRAFFIC HAS BEEN SOFT MR CRANDALL SAID REDUCING THE COMPANY'S FLEET OR ENDING SERVICE TO CERTAIN CITIES WOULD IN TURN LEAD TO DISMISSALS ALTHOUGH THE COMPANY DECLINED TO ESTIMATE HOW MANY PEOPLE MIGHT BE AFFECTED MR CRANDALL STOPPED SHORT OF ANNOUNCING MORE DRASTIC COSTSAVING MEASURES THAT SOME ANALYSTS HAVE ADVOCATED THOSE MEASURES INCLUDE SHUTTING DOWN AT LEAST TWO OF AMERICAN'S UNPROFITABLE HUBS IN SAN JOSE CALIF AND RALEIGHDURHAM NC MR CRANDALL HAS SAID AMERICAN IS CONSIDERING THOSE OPTIONS MR CRANDALL'S COMMENTS WERE A REMINDER THAT DESPITE SIGNS THE ECONOMY IS IMPROVING AND A RECENT RUNUP IN AIRLINE STOCKS MANY INDUSTRY EXECUTIVES REMAIN CAUTIOUS IF NOT PESSIMISTIC ABOUT THE NEAR FUTURE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE AMR CLOSED AT 65125 A SHARE UP 75 CENTS WHILE I'M OPTIMISTIC ENOUGH TO THINK THAT 1993 WILL BE BETTER THAN 1992 I AM NOT AT ALL CONFIDENT THAT 1993 WILL BE THE TURNAROUND YEAR MANY HOPE IT WILL BE MR CRANDALL SAID LAST YEAR THE FORT WORTH TEXAS COMPANY POSTED A LOSS OF 935 MILLION AND TOOK SEVERAL STEPS INCLUDING MANAGEMENT DISMISSALS AND REDUCED MEAL SERVICE TO PARE 300 MILLION OUT OF OPERATING COSTS THE NATION'S LARGEST AIRLINE ALSO HAS SLASHED CAPITAL EXPENDITURES THREE CONSECUTIVE YEARS BUT MR CRANDALL CONFIRMED THAT THOSE MOVES WON'T BE ENOUGH TO REVERSE THE COMPANY'S FORTUNES IN AN INDUSTRY RIDDLED BY OVERCAPACITY SLUGGISH DEMAND AND IN THE EYES OF PASSENGERS HIGH PRICES MR CRANDALL INDICATED THAT THE COMPANY WAS LOOKING VERY AGGRESSIVELY TO EXERCISE ITS OPTION TO RETURN 25 OUT OF 34 WIDEBODY JETS TO AIRBUS INDUSTRIE THE EXECUTIVE ALSO SAID AMERICAN IS CONSIDERING ACCELERATING THE RETIREMENT OF ITS FLEET OF 59 DC10S AND WILL NOT RENEW ANY EXPIRING 727 LEASES INCLUDING 16 727100S THAT EXPIRE AT THE END OF THIS YEAR AIRLINES CAN TYPICALLY REALIZE SIGNIFICANT SAVINGS IN MAINTENANCE COSTS NOT ONLY BY REDUCING THE SIZE OF THEIR FLEET BUT ALSO BY REDUCING THE DIFFERENT TYPES OF AIRCRAFT FOR AMERICAN THE POSSIBLE CUTBACKS ALL AFFECTING ITS DOMESTIC ROUTES ALSO UNDERSCORE THAT THE AIRLINE SEES ITS GROWTH IN INTERNATIONAL MARKETS IN ADDITION MR CRANDALL SAID AMERICAN WILL BE PULLING OUT OF UNPROFITABLE MARKETS OR SUBSTITUTING SMALLER AMERICAN EAGLE TURBOPROP PLANES FOR JETS AMERICAN HAS ALREADY MADE SUCH A MOVE AT ITS SAN JOSE HUB THE AIRLINE RECENTLY WITHDREW 10 DAILY JET FLIGHTS AND SUBSTITUTED SEVEN COMMUTER FLIGHTS AND CUT CAPACITY 12 MR CRANDALL HOWEVER ALSO SAID AMERICAN WILL BE ADDING SERVICE TO ITS STRONGEST DESTINATIONS DALLASFORT WORTH MIAMI AND SAN JUAN AND IT WILL BE GROWING IN CHICAGO WHERE AMERICAN HAS A LARGE INVESTMENT BUT IS STRUGGLING IN ITS BATTLE WITH UAL CORP'S UNITED AIRLINES 9302080078 930208 GLOBAL VIEW THE BUNDESBANK MAY YET WIN THE HIGHLOW GAME BY GEORGE MELLOAN AS EVERYONE KNOWS EXCEPTING SOME OF THE MONETARY WIZARDS OF THE US SENATE FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS A LOW INTEREST RATE POLICY THE 3 THE FED IS CHARGING BANKS AT ITS DISCOUNT WINDOW IS ABOUT AS CHEAP AS CREDIT CAN GET WITHOUT BECOMING AN OUTRIGHT SUBSIDY TO THE BANKERS IN SHARP AND CONTENTIOUS CONTRAST PRESIDENT HELMUT SCHLESINGER OF THE GERMAN BUNDESBANK STUBBORNLY HAS HELD TO HIGH INTEREST RATES FINALLY BOWING LAST THURSDAY TO HEAVY POLITICAL PRESSURES FROM ALL AROUND EUROPE THE GERMAN CENTRAL BANK CUT ITS DISCOUNT RATE ONEQUARTER POINT TO 8 BUT THAT STILL LEAVES AN ENORMOUS FIVE PERCENTAGE POINT SPREAD BETWEEN THE WORLD'S TWO MOST POWERFUL CENTRAL BANKS THAT GAP HAS CREATED ENORMOUS INSTABILITY IN THE GLOBAL FOREIGN EXCHANGE AND CREDIT MARKETS MONEY TRADERS PROTECTING THEIR POSITIONS BY MOVING INTO MARKS FROM OTHER CURRENCIES PLAYED HAVOC WITH THE EUROPEAN MONETARY SYSTEM LAST FALL MARKETS REMAINED DISORDERLY LAST WEEK WITH THE IRISH PUNT FINALLY TOPPLING THE DANISH KRONE AND FRENCH FRANC UNDER PRESSURE AND THE BRITISH POUND STILL TAKING ON WATER MR SCHLESINGER FELT COMPELLED TO GIVE A LITTLE GROUND AS HE DID LAST SEPTEMBER UNDER SIMILAR CIRCUMSTANCES THE QUESTION RAISED WHEN THE GERMANAMERICAN SPREAD BEGAN TO WIDEN LAST YEAR WAS WHO IS FOLLOWING THE RIGHT POLICY A POSSIBLE ANSWER IS THAT BOTH MR GREENSPAN AND MR SCHLESINGER WERE FOLLOWING THE RIGHT POLICY FOR THEIR OWN PARTICULAR SET OF NATIONAL CIRCUMSTANCES BUT WITHOUT ANY PARTICULAR REGARD FOR THE SLAMBANG INTERNATIONAL REPERCUSSIONS THE EVEN MORE INTERESTING QUESTION NOW IS WHICH CENTRAL BANKER IS IN THE BEST POSITION FOR MANAGING AN EFFECTIVE MONETARY POLICY IN THE MONTHS JUST AHEAD IT MIGHT SOUND LIKE HERESY TO SAY SO WHAT WITH THE US ECONOMY RECOVERING AND GERMANY TAKING A SWAN DIVE BUT JUST POSSIBLY THE NOD SHOULD GO TO MR SCHLESINGER MR GREENSPAN ALTHOUGH HE PROVIDED CONGRESS AND THE BUSH ADMINISTRATION WITH THE LOWEST SHORTTERM INTEREST RATES IMAGINABLE IS WINNING VERY LITTLE PRAISE HE CAME IN FOR A HEAVY GRILLING FROM PAUL SARBANES AND JAMES SASSER OF THE SENATE FINANCE COMMITTEE WEEK BEFORE LAST WITH THE GENERAL THEME THAT THE FED ISN'T DOING ENOUGH IN AID OF THE US ECONOMIC RECOVERY EVEN AT A 3 DISCOUNT RATE REP DAVID R OBEY WISCONSIN'S GIFT TO THE WORLD OF FINANCIAL OVERSIGHT WAS DROPPING DARK HINTS ABOUT GREATER CONGRESSIONAL SUPERVISION OF THE FED PERHAPS THESE GENTLEMEN WERE JUST TRYING TO EMPHASIZE THAT THERE IS A NEW REGIME IN WASHINGTON OR MAYBE THE MUSCLE FLEXING WAS MORE FOR THE BENEFIT OF BILL CLINTON THAN FOR ALAN GREENSPAN JUST IN CASE THE NEW PRESIDENT SHOULD GET THE IDEA THAT HE AND NOT CONGRESS IS IN CHARGE OF THE US GOVERNMENT BUT IN THE SINGULAR FIELD OF MONETARY POLICY POWER GAMES ARE ESPECIALLY FATUOUS THERE IS ONLY ONE BOSS AND IT IS NOT DAVID OBEY BILL CLINTON PAUL SARBANES JIM SASSER OR EVEN ALAN GREENSPAN IT IS THE GLOBAL SECURITIES AND FOREIGN EXCHANGE MARKETS ASIDE FROM ALL THE POLITICAL SURFACE NOISE CONVENTIONAL WISDOM WOULD SAY THAT MR SCHLESINGER IS STARVING THE GERMAN ECONOMY WHEREAS MR GREENSPAN HAS FINALLY MANAGED TO STIMULATE A HEALTHY LOOKING RECOVERY ALL YOU HAVE TO DO IS LOOK AT THE ECONOMIC INDICATORS IN BOTH COUNTRIES WITH THOSE IN THE US TURNING UP SHARPLY AND GERMANY'S OUTLOOK STEADILY DARKENING BUT KIEL INSTITUTE ECONOMIST JOACHIM SCHEIDE MADE AN EXCELLENT CASE IN THE WALL STREET JOURNAL EUROPE LAST WEEK THAT GERMAN MONETARY POLICY IS IN FACT NOT TIGHT IF A RAPIDLY GROWING MONEY SUPPLY AND A PERSISTENT 4 INFLATION RATE ARE ANY GUIDE IT ALSO IS TRUE THAT IF YOU LOOK AT THE SAMPLE PORTFOLIOS OF BONDS COMPILED BY LOMBARD ODLER & CIE OF GENEVA GERMAN BONDS ARE ONLY YIELDING ABOUT ONE POINT MORE THAN DOLLAR BONDS HENCE IT IS NOT SIGNIFICANTLY MORE EXPENSIVE TO ISSUE BONDS IN GERMANY THAN IN THE US AND THAT IS FAR MORE IMPORTANT TO ECONOMIC ACTIVITY THAN SHORTTERM RATES INDEED IT CAN BE ARGUED THAT MR SCHLESINGER HAS TAKEN THE WISER PATH BECAUSE HIS HIGH SHORTTERM RATES HAVE ATTRACTED BOTH FOREIGN AND DOMESTIC CAPITAL TO HELP GERMANY FINANCE ITS HUGE REUNIFICATION COSTS THE RESULT OF A POLITICAL MISJUDGMENT ALMOST AS SERIOUS AS THE US'S CORRUPTIONTAINTED AND SUPERCOSTLY SAVINGSANDLOAN FIASCO IT WAS IN LARGE PART BECAUSE OF THIS FIASCO WHICH CONTRIBUTED TO AN ASSET DEFLATION AND A GENERAL MALAISE THROUGHOUT THE US BANKING SYSTEM THAT MR GREENSPAN HAD LITTLE CHOICE BUT TO DROP THE DISCOUNT RATE TO THE FLOOR BECAUSE OF THE DECLINE IN REAL ASSET VALUES THERE WAS LITTLE RISK OF INFLATION BANKS COULD HEAL THEIR BADLY BRUISED BALANCE SHEETS AT THE SAME TIME MEETING THE NEW BASEL BANK CAPITAL REQUIREMENTS MERELY BY BORROWING AT THE DISCOUNT WINDOW AND BUYING GOVERNMENT BONDS TREASURYS ACCOUNTED FOR 223 OF BANK ASSETS IN NOVEMBER UP FROM ONLY 154 TWO YEARS EARLIER BUT NOW THAT A RECOVERY IS UNDER WAY US BANKS WILL FACE NEW DEMANDS FOR PRIVATE FINANCING MONETARY ECONOMIST STEVE HANKE OBSERVES IN THE JAN 24 ISSUE OF FRIEDBERG'S COMMODITY AND CURRENCY LETTER THAT ALL THOSE TREASURYS IN BANK VAULTS ARE LIKE LOADED GUNS THAT GIVE CAUSE FOR DEEP CONCERN BECAUSE THEY CAN BE FIRED BY LIQUIDATING GOVERNMENT DEBT HOLDINGS AND TRANSFORMING THOSE ASSETS INTO CREDITS FOR COMMERCIAL AND INDUSTRIAL CLIENTS HE ADDS THAT ONLY A VIGILANT IF NOT HAWKISH FED CAN HEAD OFF THE INFLATIONARY CONSEQUENCES THAT WOULD FOLLOW THE DISCHARGE OF THE BANKS' CREDIT GUNS ECONOMIST ALAN REYNOLDS WRITING IN THESE PAGES LAST WEEK RAISED DOUBTS ABOUT WHETHER THE FED WOULD BE CAPABLE OF A HAWKISH RESPONSE IF NEW INFLATION DANGERS ARISE HE SUGGESTED THAT THE CLINTON STIMULUS PLAN IS NOT WELL DESIGNED TO CREATE JOB GROWTH AND THAT THE PRESIDENT MAY THUS BE TEMPTED TO FALL BACK ON A QUICKFIX MONETARY STIMULUS IN OTHER WORDS MR GREENSPAN MAY COME UNDER EVEN HEAVIER PRESSURE THAN HE IS EXPERIENCING NOW TO GUN THE MONEY SUPPLY HE MAY ALSO BE AWARE THAT IF HE RAISES SHORT RATES NOW IT COULD DIVERT MONEY FROM THE SECURITIES MARKETS TO MONEY MARKET FUNDS AND THUS SEND STOCKS SLIDING MR SCHLESINGER IS IN NO SUCH FIX FIRST OF ALL HE DID NOT HAVE TO BAIL OUT HIS BANKS BECAUSE THEY WEREN'T IN TROUBLE SECOND HE HAS HELPED THE GOVERNMENT FINANCE ITS DEFICIT BY AMONG OTHER THINGS STIMULATING A HIGH RATE OF PERSONAL SAVINGS FAR HIGHER THAN THE SAVINGS RATE IN THE US AND FINALLY HE HAS ROOM TO MANEUVER IF THE GERMAN RECESSION DEEPENS AND INFLATION PRESSURES WEAKEN HE ALWAYS CAN REDUCE HIS DISCOUNT RATE WHOSE HAND WOULD YOU RATHER HOLD JUST POSSIBLY YOU WOULD PREFER TO BE THE MAN WHO RUNS THAT EVIL TIGHTFISTED CENTRAL BANK IN FRANKFURT 9302080077 930208 INTERNATIONAL HYUNDAI GROUP LEADER CHARGED IN SOUTH KOREA BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA BILLIONAIRE POLITICIAN AND INDUSTRIALIST CHUNG JU YUNG WHO IN DECEMBER WAGED AN UNSUCCESSFUL BID FOR THE SOUTH KOREAN PRESIDENCY WAS CHARGED SATURDAY WITH FRAUD AND ELECTIONLAW VIOLATIONS THE 77YEAROLD MR CHUNG FOUNDER OF HYUNDAI GROUP ONE OF SOUTH KOREA'S LARGEST CONGLOMERATES IS ALLEGED BY SEOUL DISTRICT PROSECUTORS TO HAVE ILLEGALLY USED HYUNDAI'S FINANCIAL AND HUMAN RESOURCES FOR HIS CAMPAIGN HE ALSO IS CHARGED WITH DEFAMATION FOR ALLEGEDLY ACCUSING THE CENTRAL BANK OF ILLEGALLY SUPPORTING THE CAMPAIGN OF PRESIDENTELECT KIM YOUNG SAM A CONVICTION WOULD PROBABLY HAVE LITTLE IMMEDIATE EFFECT ON HYUNDAI WHICH EMPLOYS 170000 PEOPLE AND LAST YEAR GENERATED TOTAL REVENUE EQUIVALENT TO ABOUT 5 OF KOREA'S GROSS NATIONAL PRODUCT BUT IT WOULD ALL BUT NEUTRALIZE MR CHUNG AS A LEADER OF KOREA'S POLITICAL OPPOSITION AND COULD SCATTER IN DISARRAY HIS UNITED PEOPLE'S PARTY IF CONVICTED MR CHUNG WOULD LOSE HIS PARLIAMENTARY SEAT AND BE FORCED TO RETIRE FROM POLITICS HE WOULD BE SPARED A PRISON TERM BECAUSE OF HIS AGE ALTHOUGH SEVERAL HYUNDAI OFFICIALS HAVE ALREADY BEEN IMPRISONED ON CHARGES RELATING TO ELECTION FRAUD LAST YEAR MR CHUNG AND OTHER UPP CANDIDATES MANAGED A SURPRISINGLY STRONG SHOWING IN NATIONAL ASSEMBLY ELECTIONS CAPTURING 10 OF THE TOTAL 299 SEATS THE RESULTS FUELED MR CHUNG'S PRESIDENTIAL AMBITIONS AND SIGNALED POPULAR DISCONTENT WITH THE GOVERNMENT OF PRESIDENT ROH TAE WOO WHO HAD ENDORSED MR KIM AS HIS SUCCESSOR MR ROH STEPS DOWN LATER THIS MONTH BUT MR CHUNG PLACED A DISAPPOINTING THIRD IN THE PRESIDENTIAL ELECTION REAFFIRMING KOREANS' PREFERENCE FOR STABILITY AND A TRADITIONAL SUSPICION OF BUSINESSMEN WHO ENTER POLITICS THE UPP DENOUNCED THE INDICTMENT AS A DECISION WHICH DOES NOT FIT IN WITH THE PEOPLE'S LEGAL AND COMMON SENSE MR CHUNG RAISED FUNDS BY SELLING HIS STOCK IN HYUNDAI SUBSIDIARIES ACCORDING TO A UPP STATEMENT PARTY MEMBERS SAID THEY WOULD PROTEST AGAINST WHAT THEY CALLED POLITICAL RETALIATION BY BOYCOTTING MR KIM'S FEB 25 INAUGURATION MR CHUNG HAS YET TO COMMENT ON THE INDICTMENT ALTHOUGH HE RECENTLY PLEDGED TO CONTINUE HIS POLITICAL CAREER DESPITE THE INVESTIGATION IT ISN'T THE FIRST TIME MR CHUNG AND HYUNDAI HAVE COME UNDER OFFICIAL SCRUTINY AFTER THE NATIONAL ASSEMBLY ELECTION THE GOVERNMENT AUTHORIZED A TAX AUDIT OF MR CHUNG AND HIS FAMILY THAT LED TO A FINE EQUIVALENT TO 181 MILLION AND A GOVERNMENTAPPOINTED ELECTION COMMITTEE LOOKED INTO CHARGES OF IRREGULARITIES ALLEGEDLY COMMITTED BY UPP CAMPAIGN WORKERS DURING THE PRESIDENTIAL CAMPAIGN BUT UNCOVERED NOTHING BEFORE THE DEC 18 VOTE 9302080076 930208 MORE WOMEN SAY PACKWOOD MADE SEXUAL ADVANCES WASHINGTON THIRTEEN MORE WOMEN HAVE DESCRIBED RECEIVING UNINVITED SEXUAL ADVANCES FROM SEN BOB PACKWOOD ACCORDING TO THE WASHINGTON POST THE ALLEGED INCIDENTS TOOK PLACE FROM THE LATE 1960S TO THE MID1980S AND INVOLVED A FORMER STAFF MEMBER LOBBYISTS CAMPAIGN VOLUNTEERS AND OTHERS ACCORDING TO YESTERDAY'S REPORT THE WASHINGTON POST ORIGINALLY REPORTED ALLEGATIONS OF SEXUAL HARASSMENT AGAINST THE OREGON REPUBLICAN BY 10 WOMEN IN NOVEMBER MR PACKWOOD LATER APOLOGIZED FOR HIS UNWELCOME AND OFFENSIVE ACTIONS BUT SAID HE WOULDN'T RESIGN ADDITIONAL WOMEN INTERVIEWED BY THE PAPER DESCRIBED ADVANCES RANGING FROM UNWANTED KISSING AND TOUCHING TO ONE WOMAN WHO SAID MR PACKWOOD MADE IT CLEAR DURING A JOB INTERVIEW THAT HE WANTED HER TO SPEND THE NIGHT WITH HIM SIX OF THE WOMEN AGREED TO HAVE THEIR NAMES PUBLISHED THE NEWSPAPER REPORTED THAT MR PACKWOOD'S LAWYERS SAID IN A STATEMENT THAT THE APPROPRIATE COURSE OF ACTION IS FOR SEN PACKWOOD TO RESPOND TO THESE ALLEGATIONS BEFORE THE SENATE ETHICS COMMITTEE LAST WEEK THE COMMITTEE BROADENED THE SCOPE OF ITS INQUIRY TO INCLUDE NOT ONLY ALLEGATIONS OF SEXUAL MISCONDUCT AGAINST MR PACKWOOD BUT ALSO ALLEGED ATTEMPTS BY HIM AND HIS OFFICIAL STAFF TO INTIMIDATE AND DISCREDIT HIS ACCUSERS 9302080075 930208 ADDITIONAL GAINS SEEN AT CENTURY COMMUNICATIONS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL CENTURY COMMUNICATIONS CORP EXPECTS THE TREND OF THE PAST FEW QUARTERS IN WHICH REVENUE AND OPERATING CASH FLOW HAVE IMPROVED TO CONTINUE IN THE FISCAL THIRD QUARTER AND THE YEAR BERNARD P GALLAGHER PRESIDENT AND CHIEF OPERATING OFFICER SAID FOR THE CURRENT FISCAL YEAR'S FIRST SIX MONTHS THE NEW CANAAN CONN CABLE TELEVISION AND CELLULAR TELEPHONE COMPANY HAD NARROWED ITS NET LOSS TO 174 MILLION OR 26 CENTS A SHARE FROM 41 MILLION OR 55 CENTS A SHARE IN THE PREVIOUS YEAR REVENUE IN THE PERIOD WHICH ENDED NOV 30 GREW 13 TO 1704 MILLION CASH FLOW A PARTICULARLY IMPORTANT MEASURE OF PERFORMANCE IN THE CABLE INDUSTRY ROSE NEARLY 20 IN THE SIX MONTHS TO 954 MILLION FROM 798 MILLION AT THE SAME TIME OPERATING EXPENSES GREW AT A SLOWER PACE OF 6 MR GALLAGHER SAID IN A TELEPHONE INTERVIEW THE EXECUTIVE ALSO SAID THE SIX MONTHS SHOULD BE REFLECTIVE OF THE YEAR AND THAT HOPEFULLY THE LOSSES ARE BEING REDUCED AS IN YEARS PAST IN THE YEARAGO THIRD QUARTER CENTURY HAD A LOSS OF 187 MILLION OR 30 CENTS A SHARE ON REVENUE OF 791 MILLION THE CURRENT QUARTER ENDS FEB 28 FOR THE FULL YEAR ENDED MAY 30 CENTURY HAD A NET LOSS OF 66 MILLION OR 101 A SHARE ON REVENUE OF 3123 MILLION WE WENT FROM THREE YEARS AGO BEING A FAIRLY SUBSTANTIAL USER OF CASH BECAUSE OF OUR CAPITAL SPENDING PROGRAM TO THE MOST RECENT QUARTER BEING A FAIRLY SUBSTANTIAL GENERATOR OF CASH MR GALLAGHER SAID ALTHOUGH THE COMPANY'S CASH FLOW IS IMPROVING AND ITS DEBT IS DECREASING MR GALLAGHER EXPECTS CENTURY WON'T BE PROFITABLE FOR A FEW YEARS BECAUSE THE COMPANY HAS ACCUMULATED ITS CABLE SYSTEMS THROUGH ACQUISITIONS AND IS SUBJECT TO PURCHASE ACCOUNTING RULES IT MUST DEPRECIATE CAPITAL SPENDING AND AMORTIZE ACQUISITION COSTS OVER PERIODS AVERAGING 10 YEARS MR GALLAGHER SAID THIS CREATES SUBSTANTIAL LOSSES IN THE COMPANY'S INCOME STATEMENT HE ADDED THUS MR GALLAGHER SAID SHAREHOLDERS AND BONDHOLDERS TEND TO LOOK AT NONTRADITIONAL FINANCIAL STATEMENT MEASURES CONCENTRATING FOR INSTANCE ON CASH FLOW RATHER THAN EARNINGS HE CITED AS A MEASURE OF THE COMPANY'S PERFORMANCE ITS ABILITY TO GET A NEW 300 MILLION BANK CREDIT FACILITY WITH MORE FLEXIBLE TERMS AND A 100 MILLION PLACEMENT WITH INSURANCE COMPANIES BOTH HAVE INVESTMENT GRADES CENTURY OPERATES 55 CABLE SYSTEMS IN 24 STATES AND PUERTO RICO THE LARGEST SYSTEM IS IN THE LOS ANGELES AREA THE COMPANY HAS ABOUT 920000 SUBSCRIBERS IN ITS CABLE BUSINESS WHICH REPRESENTS ABOUT 88 OF REVENUE THE CELLULAR TELEPHONE BUSINESS WHICH IS MORE OF A STARTUP BUSINESS IS GROWING FASTER WITH REVENUE IN THAT SEGMENT GROWING 50 A YEAR CENTURY THROUGH ITS 55 OWNERSHIP OF CENTENNIAL CELLULAR CORP OPERATES 13 CELLULAR TELEPHONE SYSTEMS 9302080074 930208 BCE'S BELL CANADA SEEKS RATE INCREASE FOR LOCAL SERVICE BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S LARGEST TELEPHONE UTILITY BELL CANADA PROPOSED AN INCREASE IN LOCAL TELEPHONE RATES TO PREVENT A SERIOUS DETERIORATION IN ITS FINANCIAL POSITION THE MOVE FOLLOWED A RECENT DOWNGRADING OF BELL CANADA'S DEBT BY TWO MAJOR US CREDIT AGENCIES MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP BELL CANADA SAID THE PROPOSED RATE INCREASES WHICH REQUIRE THE APPROVAL OF A FEDERAL REGULATOR CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION WOULD BOOST ITS REVENUE BY 210 MILLION CANADIAN DOLLARS US166 MILLION THIS YEAR AND BY C450 MILLION IN 1994 BELL CANADA'S 1992 REVENUE TOTALED C753 BILLION BELL CANADA WHICH PROVIDES TELEPHONE SERVICE TO SEVEN MILLION CUSTOMERS IN ONTARIO QUEBEC AND THE EASTERN ARCTIC IS A SUBSIDIARY OF BCE INC A MONTREAL HOLDING COMPANY BELL CANADA ATTRIBUTED ITS WORSENING FINANCIAL OUTLOOK TO STRONGERTHANEXPECTED COMPETITION IN THE LONGDISTANCE TELEPHONE MARKET THE GOVERNMENT OPENED THE MARKET TO COMPETITION IN 1990 BELL CANADA HAS RELIED ON ITS BIG LONGDISTANCE EARNINGS TO SUBSIDIZE LOCAL TELEPHONE RATES THE UTILITY SAID IT CURRENTLY HAS TO PAY 17 CENTS OF EVERY MINUTE OF LONGDISTANCE REVENUE TO SUBSIDIZE LOCAL SERVICE WHILE LARGE US CARRIERS PAY ONLY TWO TO THREE CENTS A MINUTE IN LOWERING BELL CANADA'S DEBT RATING TO DOUBLEA3 FROM DOUBLEA2 MOODY'S WARNED THAT THE UTILITY WOULD FACE SIGNIFICANT MARKET SHARE LOSSES AND FINANCIAL PRESSURES OVER THE INTERMEDIATE TERM AS A RESULT OF COMPETITION IN THE LONGDISTANCE MARKET BELL CANADA SAID ITS LONGDISTANCE REVENUE IS ERODING EVEN THOUGH ITS COSTS OF PROVIDING LONGDISTANCE SERVICE ARE BELOW THOSE OF AMERICAN TELEPHONE & TELEGRAPH CO AND ARE ABOUT EQUAL TO THOSE OF MCI COMMUNICATIONS CORP BELL'S RATE APPLICATION IS EXPECTED TO BE STRONGLY OPPOSED BY CONSUMER GROUPS BELL IS ASKING ITS SUBSCRIBERS TO PAY FOR NETWORK UPGRADES AND LONGDISTANCE PRICE REDUCTIONS THAT PRIMARILY BENEFIT BUSINESS SAID MICHAEL JANIGAN EXECUTIVE DIRECTOR OF PUBLIC INTEREST ADVOCACY CENTRE 9302080073 930208 BUSINESS BRIEF BARR LABS SHARES TUMBLE AFTER JUDGE ORDERS PRODUCT CURBS POMONA NY SHARES OF GENERICDRUG MAKER BARR LABORATORIES INC SKIDDED 30 FRIDAY AFTER A FEDERAL JUDGE ORDERED THE COMPANY TO TEMPORARILY SUSPEND PRODUCTS REPRESENTING ABOUT 40 OF ITS SALES JUDGE ALFRED M WOLIN HOWEVER DENIED A REQUEST BY THE FOOD AND DRUG ADMINISTRATION TO ENTIRELY SHUT DOWN THE COMPANY RULING THAT HE COULD NOT IGNORE SOME OF BARR'S REMEDIAL EFFORTS BUT HE ORDERED BARR TO SUSPEND TEMPORARILY 24 PRODUCTS AND ORDERED RECALLS OF 12 SPECIFIC BATCHES OF EIGHT DIFFERENT PRODUCTS BARR PRESIDENT BRUCE DOWNEY SAID IN AN INTERVIEW THAT THE RECALLS INVOLVE LESS THAN 1 OF THE COMPANY'S TOTAL PRODUCTION HALF OF THE RECALLED BATCHES ARE MORE THAN TWO YEARS OLD AND ALL ARE MORE THAN ONE YEAR OLD HE ADDED MR DOWNEY HOWEVER SAID THE COMPANY IS UNABLE TO FORECAST THE FINANCIAL IMPACT OF THE JUDGE'S DECISION BECAUSE IT DOESN'T KNOW HOW LONG THE SUSPENDED PRODUCTS WILL BE UNAVAILABLE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY BARR'S SHARES FELL 3875 TO CLOSE AT 9 JUDGE WOLIN SAID BARR MAY CONTINUE TO MAKE AND SHIP 34 OTHER PRODUCTS BUT GAVE IT ONE YEAR TO COMPLETE SOCALLED VALIDATION STUDIES OF THE SUSPENDED DRUGS TO ENSURE THAT THE COMPANY IS FOLLOWING CONSISTENT MANUFACTURING PRACTICES WE BELIEVE THAT ALL OF THESE PRODUCTS CAN BE VALIDATED MR DOWNEY SAID NOTING THAT NONE OF THE JUDGE'S CONCERNS INVOLVED HEALTH AND SAFETY ISSUES THE COMPANY HE ADDED PLANS TO MOVE FORWARD IN A POSITIVE RELATIONSHIP WITH THE COURT AND THE FDA TO GET ALL OF ITS PRODUCTS ON THE MARKET THE DECISION BY JUDGE WOLIN IS THE LATEST CHAPTER IN BARR'S LONGRUNNING DISPUTE WITH THE FDA THE REGULATORS ORIGINALLY SOUGHT AN INJUNCTION AGAINST BARR TO STOP ALL SALES AND MANUFACTURING OF DRUGS BUT LAST YEAR MODIFIED ITS REQUEST AND SOUGHT ONLY A PARTIAL SHUTDOWN FOR SPECIFIC PRODUCTS BARR HAS DENIED FDA ALLEGATIONS THAT IT MISLABLED DRUGS AND COMMITTED OTHER UNSAFE PRACTICES 9302080072 930208 POLITICS & POLICY SPACE PROGRAM SUPERCOLLIDER PROJECT MAY FACE BUDGET CUTS BY WHITE HOUSE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS STUDYING BUDGET OPTIONS THAT INCLUDE A MAJOR RESTRUCTURING OF THE NATION'S SPACE PROGRAM AND STRETCHING OUT DEVELOPMENT OF THE SUPERCONDUCTING SUPERCOLLIDER UNDER CONSTRUCTION IN TEXAS THE SPACE STATION FREEDOM ALREADY FACING COST OVERRUNS IN HOUSTON IS A POTENTIAL TARGET AND ONE ALTERNATIVE DEVELOPED BY BUDGET DIRECTOR LEON PANETTA CALLS FOR TERMINATING THE 30 BILLION PROJECT IN ORDER TO GENERATE FUNDS FOR HIGHTECHNOLOGY COMPUTER AND FIBER OPTIC INITIATIVES FAVORED BY THE CLINTON ADMINISTRATION THE SUPERCOLLIDER ATOM SMASHER IS ALSO VULNERABLE BUT FAR LESS COSTLY AND ALTERNATIVES DEVELOPED BY THE BUDGET OFFICE INCLUDE PROCEEDING AT A SLOWER PACE FOR EXAMPLE WHILE THE BUSH ADMINISTRATION HAD PROPOSED A 66 INCREASE TO ABOUT 859 MILLION IN THE FISCAL YEAR THAT BEGAN OCT 1 THE OPTIONS UNDER REVIEW CALL FOR A FREEZE OR EVEN A CUT FROM THIS YEAR'S LEVEL OF ABOUT 517 MILLION IN CONTRAST WITH HIS REPUBLICAN PREDECESSOR RICHARD DARMAN MR PANETTA IS FAR LESS ENAMORED WITH THE COSTLY SPACE STATION AND VOTED AGAINST THE PROJECT AS A CONGRESSMAN THE ALTERNATIVE INVESTMENTS IN COMPUTERS AND HIGH TECHNOLOGY APPEAL TO THE PRESIDENT'S SCIENCE ADVISERS BUT THE STATION REMAINS A POLITICALLY POWERFUL SYMBOL FOR MANNED SPACE FLIGHT DURING INAUGURAL CEREMONIES LAST MONTH THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WAS ONE OF THE FEW FEDERAL AGENCIES TO HAVE AN EXHIBIT ON THE MALL AND NASA OFFICIALS HOPE TO CAPITALIZE ON THE FACT THAT MR CLINTON'S DAUGHTER CHELSEA HAS AMBITIONS TO BE AN ASTRONAUT VICE PRESIDENT ALBERT GORE WHO IS SURE TO BE A MAJOR VOICE IN THE DEBATE HAS A FOOT IN BOTH CAMPS AS A SENATOR HE CHAMPIONED INVESTMENT IN THE NEW COMPUTER INITIATIVES NOW FAVORED BY THE PANETTA ALTERNATIVE BUT MR GORE'S HOME STATE OF TENNESSEE HAS A STAKE AS WELL IN THE ADVANCED SOLIDROCKETMOTOR PROGRAM FOR NASA'S SHUTTLE ANY DECISION AFFECTING THE STATION OR COLLIDER IS SURE TO BE CONTROVERSIAL GIVEN THE TEXAS ELECTION FOR US SENATE IN MAY AND PRESIDENT CLINTON HAS INVOLVED HIMSELF TO AN UNUSUAL DEGREE IN THE EARLY SKIRMISHING OVER THE BUDGET FORMER PRESIDENTS REAGAN AND BUSH FOR EXAMPLE TYPICALLY WAITED TO HEAR APPEALS FROM CABINET SECRETARIES PROTESTING CUTS PROPOSED BY THE BUDGET OFFICE BUT MR CLINTON HAS BEEN MORE HANDS ON FROM THE OUTSET AND A MEETING WAS HELD AT THE WHITE HOUSE FRIDAY EVENING TO GIVE HIM AN OPPORTUNITY TO REVIEW BUDGET ALTERNATIVES BEFORE THEY ARE SENT TO AGENCIES PRIOR TO THE MEETING MR CLINTON SOUGHT TO QUELL SPECULATION THAT THE STATION AND COLLIDER WOULD BE TERMINATED ADMINISTRATION OFFICIALS YESTERDAY REFUSED ANY FURTHER COMMENT BUT GIVEN TEXAS'S STAKE IN BOTH PROJECTS THERE IS PRESSURE TO SHOW THAT FUNDS WILL BE REINVESTED IN AREAS THAT BENEFIT THE STATE FOR THIS REASON ONE POTENTIAL BENEFICIARY MAY BE THE AUSTINBASED SEMATECH CONSORTIUM OF SEMICONDUCTOR COMPANIES WHICH HAS ENJOYED RECENT SUCCESS IN PRODUCING COMPUTER CHIPS WITH CIRCUITS HALF THE SIZE OF THE INDUSTRY'S CURRENT STATEOFTHEART PRODUCT 9302080071 930208 BUSINESS BRIEF MOBLEY ENVIRONMENTAL SERVICES INC EPA TAKES BACK EXEMPTION FOR WASTEDISPOSAL WELL THE ENVIRONMENTAL PROTECTION AGENCY REVERSED A 1991 DECISION AND DENIED AN EXEMPTION TO DISPOSAL RESTRICTIONS FOR ONE OF TWO HAZARDOUS WASTE INJECTION WELLS OPERATED NEAR WINONA TEXAS BY MOBLEY ENVIRONMENTAL SERVICES INC THE COMPANY SAID THE WELL HAD BEEN INACTIVE SINCE JUNE WHEN A FEDERAL JUDGE RULED THAT THE EPA HAD NOT FOLLOWED PROPER PROCEDURES FOR ISSUING PERMITS JOHN MOBLEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE WASTE MANAGEMENT CONCERN DID NOT ANTICIPATE HAVING THE WELL AVAILABLE FOR HAZARDOUS WASTE IN 1993 AND THE DECISION WOULD HAVE NO IMPACT ON REVENUE THE EPA DENIED THE EXEMPTION WITHOUT PREJUDICE ALLOWING MOBLEY TO SUBMIT AN AMENDED PETITION MR MOBLEY SAID THE COMPANY WAS CONSIDERING REPAIRS TO THE CEMENT CASING ON THE WELL WHICH WAS APPROVED BY THE EPA IN 1991 BUT WAS QUESTIONED IN THE AGENCY'S DECISION FRIDAY HE SAID MR MOBLEY ALSO SAID THE DECISION DID NOT AFFECT THE ORIGINAL WELL AT THE SITE WHICH IS OPERATED BY GIBRALTAR CHEMICAL RESOURCES INC A UNIT OF MOBLEY 9302080070 930208 BUSINESS BRIEF DYCOM INDUSTRIES ACCORD IS REACHED ON SUITS BY TWO FORMER OFFICIALS DYCOM INDUSTRIES INC SAID IT REACHED AN AGREEMENT WITH TWO FORMER OFFICIALS TO DROP LAWSUITS INVOLVING THE COMPANY'S ANSCO & ASSOCIATES UNIT THE WEST PALM BEACH FLA TELECOMMUNICATIONS COMPANY WOULDN'T REVEAL TERMS OF THE AGREEMENTS WITH WILLIAM T STOVER DYCOM'S FORMER PRESIDENT AND BILLY V RAY JR AN ACCOUNTANT WHO WORKED FOR MR STOVER BUT DYCOM SAID NO MONEY WAS INVOLVED AND EACH PARTY WOULD PAY ITS OWN LEGAL COSTS ALSO DYCOM SAID MR RAY WOULD RESIGN FROM DYCOM'S BOARD AND BE SUCCEEDED BY SOMEBODY NOMINATED BY MR STOVER AND ACCEPTABLE TO DYCOM'S DIRECTORS MR STOVER FORMER PRESIDENT OF ANSCO SUED DYCOM LAST YEAR SAYING THAT THE COMPANY MISLED HIM ABOUT ITS MANAGEMENT WHEN IT ACQUIRED ANSCO IN 1990 AND THAT DYCOM DISMISSED HIM ILLEGALLY AS PRESIDENT OF ANSCO DYCOM WHICH CONTENDED IT HAD DISMISSED HIM IN PART FOR TRYING TO FORCE A MERGER WITH A RIVAL BURNUP & SIMS INC SUED MR STOVER AND MR RAY IN JUNE 9302080069 930208 POLITICS & POLICY JUDGE KIMBA WOOD'S FORCED WITHDRAWAL LEADS MANY TO SEE A DOUBLE STANDARD FOR APPOINTEES BY MICHAEL K FRISBY AND CATHY TROST STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE FORCED WITHDRAWAL OF FEDERAL JUDGE KIMBA WOOD AS A CONTENDER FOR ATTORNEY GENERAL HAS SPARKED CHARGES OF A DOUBLE STANDARD FROM WOMEN WHO ARGUE THAT SHE AND ZOE BAIRD WERE HELD TO TOUGHER SCRUTINY THAN THE MEN CHOSEN FOR CABINET POSTS WITH PRESIDENT CLINTON'S SECOND ATTEMPT TO APPOINT THE NATION'S FIRST WOMAN ATTORNEY GENERAL HAVING BACKFIRED THE WHITE HOUSE IS SCRAMBLING TO FIELD ITS NEXT CANDIDATE BOTH WOMEN WERE HURT BY EARLIER DECISIONS TO HIRE ILLEGAL ALIENS TO CARE FOR THEIR INFANT CHILDREN MS WOOD UNLIKE MS BAIRD DIDN'T VIOLATE ANY LAWS AND MADE REQUIRED SOCIAL SECURITY PAYMENTS FOR THE NANNY BUT ON FRIDAY AFTER NEWS REPORTS APPEARED SAYING SHE WAS CHOSEN FOR THE POSITION MS WOOD WAS FORCED BY THE WHITE HOUSE TO PULL OUT OF CONTENTION I HAVE CONCLUDED THAT IN THE CURRENT POLITICAL ENVIRONMENT PROCEEDING FURTHER WITH THE POSSIBILITY OF MY NOMINATION WOULD BE INAPPROPRIATE MS WOOD SAID IN A STATEMENT YESTERDAY THE ACCUSATIONS BY WOMEN GAINED STEAM AND THE PRESIDENT'S POLITICAL PROBLEMS WORSENED WHEN COMMERCE SECRETARY RON BROWN ACKNOWLEDGED IN AN INTERVIEW ON NBCTV'S MEET THE PRESS THAT HE TOO HAD FAILED TO PAY SOCIAL SECURITY TAXES ON HIS HOUSEKEEPER FOR ABOUT FIVE YEARS AND PAID THEM ONLY AFTER MS BAIRD'S NOMINATION FOCUSED ATTENTION ON THE ISSUE THERE WAS NO EVIDENCE YESTERDAY THAT MR BROWN WOULD BE ASKED TO RESIGN HE RECENTLY PAID 1200 IN TAXES INTEREST AND PENALTIES MOREOVER A WHITE HOUSE AIDE SAID IT IS NOT INCONCEIVABLE THAT OTHER CABINET MEMBERS OR APPOINTEES MAY HAVE UNKNOWINGLY VIOLATED THE LAW REQUIRING SOCIAL SECURITY TAXES BE PAID ON MOST HOUSEHOLD EMPLOYEES WHO EARN MORE THAN 50 A QUARTER IT NOW COMES UP IN THE INTERVIEW PROCESS FOR MEN AND WOMEN ALIKE THE AIDE SAID THE FACT THAT MS WOOD WHO BROKE NO LAWS HAS BEEN PRECLUDED FROM SERVING IN THE CABINET WHILE OTHERS WHO VIOLATED TAX LAWS LIKE MR BROWN HAVEN'T BEEN OUSTED HAS FUELED ANGER AMONG MANY PEOPLE MARY LIEBERMAN A 34YEAROLD MOTHER FROM READING PA COMPLAINS THAT IT'S A DOUBLE STANDARD SHE PAID HER TAXES SHE DIDN'T BREAK THE LAW SOMEWHERE THERE IS A GOOD OLD BOY NETWORK THAT DOESN'T WANT A WOMAN ATTORNEY GENERAL VOTERS LIKE MS LIEBERMAN WHO LOOK TO PRESIDENT CLINTON TO TREAT WOMEN FAIRER THAN PREVIOUS ADMINISTRATIONS ARE PRESSURING HIM TO CONTINUE HIS SEARCH TO FIND A WOMAN FOR THE POST ALTHOUGH SOME HAVE SUGGESTED HE MAY NOW TURN TO A MAN THE TOP WOMEN CANDIDATES KNOWN TO BE UNDER CONSIDERATION INCLUDE LOS ANGELES LAWYER ANDREA ORDIN AND MINNESOTA JUDGE DIANA MURPHY FORMER VIRGINIA GOV GERALD L BALILES IS A MALE CANDIDATE FOR THE JOB A POTENTIAL CANDIDATE WASHINGTON LAWYER CHARLES RUFF IS NOW SAID TO BE OUT OF THE RUNNING BECAUSE HE ALSO HAS A HOUSEKEEPER PROBLEM MR RUFF HAS ACKNOWLEDGED THAT HE DIDN'T PAY SOCIAL SECURITY TAXES FOR A DOMESTIC WORKER HE HAS SINCE PAID 3300 IN BACK TAXES LED BY ITS PRESIDENT PATRICIA IRELAND THE NATIONAL ORGANIZATION FOR WOMEN IS LAUNCHING TODAY A PHONE FAX AND MAILGRAM CAMPAIGN ASKING MEMBERS OF THE CABINET CONGRESS AND SUPREME COURT FOR DETAILS ABOUT THEIR CHILDCARE ARRANGEMENTS TO MAKE THE POINT THAT JUDGE WOOD SHOULDN'T BE SINGLED OUT PEOPLE ARE VERY ANGRY SAID MS IRELAND I THINK THAT SEEING TWO WOMEN NAMED FOR TOP SPOTS IN THE CABINET BOTH WHO GOT KNOCKED OUT FOR CHILDCARE ARRANGEMENTS IS JUST TOO CLEAR AN EXAMPLE OF A DOUBLE STANDARD BEING USED TO KEEP WOMEN OUT OF POWER MS IRELAND CONTENDS THAT WHILE MANY PEOPLE SAW ZOE BAIRD AS A RICH WOMAN WHO DIDN'T PLAY BY THE RULES THEY NOW SEE A WOMAN WHO OBEYED ALL THE RULES ALSO GETTING KNOCKED OUT SHE STRESSED THAT IT IS NOW CRITICALLY IMPORTANT FOR MR CLINTON TO APPOINT A WOMAN THERE ARE ALSO COMPLAINTS THAT MR CLINTON HAS FOCUSED NARROWLY ON MODERATE WOMEN WITHOUT STRONG TIES TO THE FEMINIST MOVEMENT SOME PEOPLE WERE ALSO UPSET THAT IT WAS WIDELY REPORTED THAT ANOTHER FACTOR WORKING AGAINST JUDGE WOOD WAS THAT SHE TRAINED TO WORK AT A PLAYBOY CLUB IN LONDON WHILE ATTENDING THE LONDON SCHOOL OF ECONOMICS I'D LIKE TO KNOW HOW MANY OF THE MEN AT THE WHITE HOUSE HAVE NEVER STEPPED FOOT IN A PLAYBOY CLUB SAID MARY JO EYSTER A BROOKLYN LAW SCHOOL PROFESSOR WHO WORKED WITH JUDGE WOOD AT THE NEW YORK FIRM LEBOEUF LAMB LEIBY & MACRAE SOME WOMEN'S GROUPS WERE LESS CONCERNED ABOUT A DOUBLE STANDARD HOWEVER POINTING OUT THAT MEN LIKE MR BROWN WERE NOW BEING ASKED QUESTIONS ABOUT THEIR CHILD CARE AND DOMESTIC HELP JUDITH LICHTMAN EXECUTIVE DIRECTOR OF THE WOMEN'S LEGAL DEFENSE FUND WORRIES THAT THE ISSUE OF WHETHER A PERSON PAID TAXES ON THEIR HELP SHOULDN'T BE THE DECIDING FACTOR THESE NOMINEES NEED TO BE JUDGED IN A MUCH BIGGER CONTEXT SHE SAID OVER THE WEEKEND CONFUSION SWIRLED AROUND THE QUESTION OF WHETHER MS WOOD HAD TOLD THE WHITE HOUSE ABOUT THE POTENTIAL PROBLEM WITH HER NANNY MS WOOD'S DEFENDERS SAID SHE OFFERED FULL DETAILS OF HER CHILDCARE ARRANGEMENTS FROM THE BEGINNING WHITE HOUSE OFFICIALS CONTEND THEY DIDN'T LEARN OF THE ARRANGEMENT UNTIL LAST THURSDAY AFTERNOON A WEEK AFTER SHE WAS FIRST APPROACHED ABOUT THE JOB IN AN EFFORT TO CLEAR UP THE CONFUSION MS WOOD YESTERDAY WROTE A LETTER TO THE NEW YORK TIMES WHICH YESTERDAY RAN A STORY THAT QUOTED PEOPLE CLOSE TO HER AS SAYING SHE HAD PROVIDED THE WHITE HOUSE DETAILS OF HER CHILDCARE ARRANGEMENT MORE THAN A WEEK AGO BUT IN HER LETTER JUDGE WOOD INSISTED I DID NOT MISLEAD ANYONE AT ANY POINT AND I HAVE OBEYED ALL LAWS SHE SAID SHE WAS ASKED ON JAN 28 AND 29 WHETHER SHE HAD ANY ZOE BAIRD PROBLEMS I SAID I DID NOT AND SAID THAT I HAVE PAID ALL REQUIRED TAXES FOR 20 YEARS AND THAT I COMPLIED FULLY WITH THE LAWS RELATING TO HOUSEHOLD HELP SHE SAID AT MY MEETING IN THE WHITE HOUSE ON JAN 29 I HAD WITH ME IN MY BRIEFCASE MY IMMIGRATION AND SOCIAL SECURITY FILES WHICH I BROUGHT TO MY INTERVIEWS SO THAT I WOULD BE IN A POSITION TO PROVIDE DOCUMENTATION THAT I HAD COMPLIED WITH THE LAW SHE ADDED THAT DOCUMENTS SUPPLIED TO THE WHITE HOUSE INDICATED HER BABYSITTER HAD OVERSTAYED HER VISA SHE CONCEDES THAT I DID NOT COMMUNICATE THIS ORALLY ON JAN 28 OR 29 BECAUSE MY ACTIONS HAD COMPLIED WITH ALL LAWS I DID NOT VIEW THIS AS A ZOE BAIRD PROBLEM MS WOOD SAID THE NANNY WAS HIRED IN 1986 ALTHOUGH HER VISA HAD EXPIRED SIX YEARS EARLIER IN 1987 THE SITTER BECAME A LEGAL RESIDENT UNDER A FEDERAL AMNESTY PROGRAM JUDGE WOOD SAID IN HER LETTER THAT SHE WASN'T ASKED TO PROVIDE DOCUMENTATION CONCERNING HER HOUSEHOLD HELP UNTIL LAST WEDNESDAY IT WAS RECEIVED BY WHAT SHE CALLED VETTERS A GROUP OF PRIVATE LAWYERS WORKING FOR THE WHITE HOUSE WHO LATER PASSED THE MATERIAL TO THE PRESIDENT'S AIDES SOME OF MY HOUSEHOLD HELP FILES WERE RECEIVED BY THE WHITE HOUSE VETTERS AT APPROXIMATELY 10 AM ON FEB 4 AND THE REMAINDER WERE RECEIVED ABOUT 2 1/2 HOURS LATER SHE SAID THE VETTERS BEGAN THEIR REVIEW OF THESE FILES IMMEDIATELY AND THE FACT THAT I COMPLIED WITH ALL LAWS WAS VERIFIED AS THE WHITE HOUSE SUBSEQUENTLY ACKNOWLEDGED AFTER RECEIVING THE PAPERS HOWEVER WHITE HOUSE OFFICIALS CONCLUDED THAT NOMINATING MS WOOD WOULD CREATE A SERIOUS PERCEPTION PROBLEM THEY FELT THEY WOULDN'T BE ABLE TO PUSH THROUGH THE NOMINATION ON CAPITOL HILL WHERE SENATORS WERE LOOKING FOR A NOMINEE WITHOUT BLEMISHES MR CLINTON WAS SAID TO BE UPSET THAT VARIOUS NEWSPAPERS INCLUDING THE WALL STREET JOURNAL HAD REPORTED THAT MS WOOD HAD BEEN CHOSEN FOR ATTORNEY GENERAL HE ALSO WAS ANGRY THAT JUDGE WOOD MET WITH HIM IN THE OVAL OFFICE AND HADN'T DISCLOSED THE FULL DETAILS OF HER NANNY ONE AIDE INSISTED THAT MR CLINTON MIGHT HAVE STUCK WITH HER AS SOME WOMEN HAVE ADVOCATED IF SHE HAD DISCLOSED THE PROBLEM EARLIER HE DID NOT LIKE BEING MISLED SAID ONE ADVISER THERE WAS NO WAY HE COULD APPOINT HER ATTORNEY GENERAL AFTER SHE HAD MISLED HIM LIKE THAT THE EPISODE WAS SEEN AS TARNISHING WHAT HAD BEEN A SUCCESSFUL WEEK FOR MR CLINTON HE HAD PUT HIS EARLIER COMMUNICATIONS PROBLEMS BEHIND HIM AND FOCUSED ATTENTION ON WELFARE REFORM AND HIS ECONOMIC PACKAGE BUT BY WEEK'S END THE PROBLEM THAT HAS DISRUPTED THE EARLY DAYS OF HIS PRESIDENCY WAS BACK FINDING A WOMAN ATTORNEY GENERAL JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9302080068 930208 ECONOMY BUSINESS GROUPS PREPARE TO SQUARE OFF AGAINST CLINTON ON MINIMUM WAGE ISSUE BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN HE WAS RUNNING FOR PRESIDENT BILL CLINTON SAID HE WANTED US WORKERS TO HAVE IMPROVED SKILLS AND HIGHER PAY BUT HE DIDN'T SAY WHICH SHOULD COME FIRST NOW TO THE DISMAY OF MANY BUSINESS GROUPS THE CLINTON ADMINISTRATION HAS MADE IT CLEAR THAT IT WANTS TO RAISE THE MINIMUM WAGE WITHOUT WAITING FOR THE IMPROVED SKILLS THE NEW TEAM IS ARMED WITH A STUDY THAT REBUTS THE BUSINESS ARGUMENT THAT A HIGHER MINIMUM WAGE CREATES HIGHER JOBLESSNESS LABOR DEPARTMENT OFFICIALS ARE EXPECTED TO PUSH FOR AN INCREASE OF AS MUCH AS 10 IN THE MINIMUM WAGE WHICH IS CURRENTLY 425 AND THEN INDEX IT TO INFLATION THERE'S A RELATIVELY LARGE POPULATION OF PEOPLE WORKING FULL TIME AND STILL IN POVERTY LABOR SECRETARY ROBERT REICH SAID IN AN INTERVIEW THIS TURNS ON ITS HEAD THE AMERICAN WORK ETHIC AND EVERYTHING WE'RE TRYING TO ACCOMPLISH IN THIS COUNTRY IN ADDITION TO A HIGHER MINIMUM WAGE THE ADMINISTRATION PLANS AN EARNED INCOME TAX CREDIT ALLOWING WORKERS TO KEEP MORE OF WHAT THEY MAKE THAT STUDY WAS PART OF A PACKAGE OF NEW REPORTS THE MOST INFLUENTIAL OF WHICH WAS DONE BY PRINCETON UNIVERSITY PROFESSOR DAVID CARD WHICH SHOWED THAT A MINIMUMWAGE INCREASE OF ABOUT 10 DOESN'T HAVE A NEGATIVE IMPACT ON EMPLOYMENT BUSINESS GROUPS ARE GIRDING THEMSELVES FOR A FIGHT THE NATIONAL ASSOCIATION OF MANUFACTURERS AND THE NATIONAL RESTAURANT ASSOCIATION ARE ALERTING MEMBERS TO THE ADMINISTRATION'S PLANS AND URGING THEM TO TRY TO HEAD IT OFF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS SMALLER COMPANIES IS SEEKING EXEMPTIONS FOR THEIR MEMBERS SOME WORRY ABOUT HOW FAST THE ADMINISTRATION WANTS TO MOVE WHEN IT DOES COME IT WILL BE ONE OF THOSE PUSHITTHROUGHQUICKLY BILLS SAYS NELSON LITTERST A LOBBYIST FOR THE INDEPENDENTBUSINESS FEDERATION OF 618 MILLION HOURLY WORKERS IN THE US ONLY 57 MILLION ACTUALLY WORK FOR THE MINIMUM WAGE BUT FOR MANY OF THEM THE BASE WAGE ISN'T ENOUGH TO GET BY WITHOUT WELFARE OR OTHER FORMS OF GOVERNMENT ASSISTANCE INDEED A FAMILY OF THREE THAT RELIES ON A MINIMUMWAGE EARNER WOULD STILL FALL 2300 SHORT OF THE POVERTY LINE ACCORDING TO THE ECONOMIC POLICY INSTITUTE A WASHINGTON THINKTANK WITH CLOSE TIES TO THE ADMINISTRATION BEYOND THE WORKING POOR MR REICH VOICES CONCERN FOR THE 75 OF AMERICAN WORKERS WITHOUT A COLLEGE EDUCATION WHO ARE ON THE DOWNWARD ESCALATOR IN THIS COUNTRY WITH THE MINIMUM WAGE AS THE BASELINE FOR WORKER EARNINGS MR REICH WANTS TO PRESS FOR AN INCREASE THAT COULD IMPROVE THINGS FOR ALL WORKERS THERE IS SUPPORT AMONG CONGRESSIONAL DEMOCRATS REP GEORGE MILLER D CALIF ALREADY HAS INTRODUCED LEGISLATION THAT WOULD INDEX THE MINIMUM WAGE TO THE COST OF LIVING REP MARTIN OLAV SABO D MINN CHAIRMAN OF THE HOUSE BUDGET COMMITTEE PLANS TO REINTRODUCE SOON HIS PROPOSAL TO BOOST THE MINIMUM WAGE TO 650 AN HOUR BUSINESS INTERESTS INSIST THAT THE TIMING IS TERRIBLE SAYS BILL FISHER EXECUTIVE VICE PRESIDENT OF THE NATIONAL RESTAURANT ASSOCIATION YOU'RE SEEING MASSIVE LAYOFFS AT SEARS BOEING PRATT & WHITNEY AND IBM THIS IS JUST THE WRONG TIME FOR IT ON THE HEELS OF THE KATZ STUDY THE EMPLOYMENT POLICIES INSTITUTE A RESEARCH GROUP FUNDED LARGELY BY RESTAURANTS AND OTHER RETAILERS QUICKLY RELEASED ITS OWN STUDY CONTENDING THAT PROFESSOR KATZ'S RESEARCH WAS FLAWED CARLOS BONILLA THE GROUP'S ECONOMIST ARGUES THAT RAISING THE MINIMUM WAGE TO 5 WOULD LIFT THE EARNINGS OF THE 142 MILLION PEOPLE WHO CURRENTLY EARN LESS THAN THAT AMOUNT BUT HE CONTENDS THAT THE PEOPLE MOST IN NEED OF HELP ARE THE 495000 HEADS OF SINGLEEARNER HOUSEHOLDS WHO MAKE THE MINIMUM WAGE AND REMAIN BELOW THE POVERTY LINE IF YOU REALLY WANT TO HELP THE WORKING POOR IT DOESN'T MAKE MUCH SENSE TO REACH ALL THESE 142 MILLION PEOPLE MR BONILLA SAYS AND BUSINESSES WORRY THAT THE INCREASE WOULD SET OFF A RIPPLE EFFECT IN WAGES BEYOND THE LOWEST RUNG COMPANIES EAGER TO HIRE THE BEST ENTRYLEVEL EMPLOYEES TYPICALLY OFFER A PREMIUM TO ATTRACT THOSE WORKERS IN ADDITION EMPLOYERS OFTEN KEEP A TIERED SYSTEM TO REWARD THOSE WORKERS WHO ARE DOING WELL BUSINESS IS FIGHTING BACK WITH STUDIES THAT SHOW THAT FEW WORKERS STAY AT THE MINIMUMWAGE LEVEL FOR LONG INSTEAD THEY ARE PROMOTED TO HIGHER PAY LEVELS BUT THEIR AMMUNITION IS STRONGEST IN THE JOBCREATION ARGUMENT IF WE CONTINUE TO ADD TO THE COST OF LABOR BUSINESS WILL SIMPLY MOVE JOBS ABROAD SEN NANCY KASSEBAUM THE RANKING REPUBLICAN ON THE LABOR COMMITTEE LECTURED MR REICH AT HIS CONFIRMATION HEARING ALL THE JOB TRAINING THAT MONEY CAN BUY WILL BE USELESS IF THERE ARE NO JOBS FOR THE WORKERS TO FILL US HOURLY WAGES ARE CONSIDERABLY LOWER THAN THOSE IN WESTERN EUROPE BUT THEY ARE ABOUT 10 TIMES HIGHER THAN WAGES PAID IN MEXICO AND OTHER DEVELOPING ECONOMIES INSTEAD OF A RAISE IN THE MINIMUM WAGE BUSINESS LOBBYISTS ARGUE THAT THE EARNEDINCOME TAX CREDIT CAN STAND ALONE AS THE MAIN RELIEF FOR LOWERPAID WORKERS BACKERS OF A HIGHER WAGE CONTEND THAT MANY COMPANIES HAVE BEEN GETTING A FREE RIDE THEY ASSERT THAT DESPITE MINIMUMWAGE INCREASES IN 1990 AND 1991 WAGES HAVEN'T KEPT PACE WITH IMPROVEMENTS IN PRODUCTIVITY WILLIAM SPRIGGS AN ECONOMIST AND MINIMUMWAGE SPECIALIST AT THE ECONOMIC POLICY INSTITUTE POINTS TO RETAIL STORES MANY OF WHICH ALREADY HAVE MOVED TO POINTOFSALE EQUIPMENT THAT ALLOWS THE CLERK TO BE A CASHIER AND TAKE INVENTORY 9302080067 930208 FOREIGN EXCHANGE CHOPPY WEEK IS EXPECTED FOR THE DOLLAR AFTER JOBS DATA AND GERMAN RATE CUTS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR IS IN FOR A CHOPPY WEEK AS MARKET PLAYERS GRAPPLE WITH THE DOMESTIC EMPLOYMENT PICTURE AND THE LATEST CUTS IN GERMAN INTEREST RATES TAKEN TOGETHER LAST WEEK'S JOBS REPORT AND GERMAN RATE ACTION SHOULD HELP THE DOLLAR TRADERS AND ANALYSTS SAY BUT THE OUTLOOK FOR INTEREST RATES HERE AND IN GERMANY IS STILL MURKY AND THAT IS LIKELY TO MAKE DEALERS QUICK TO TAKE PROFITS ON ANY SHARP PRICE MOVE MEANWHILE TRADERS SAY THAT ALTHOUGH THE GERMAN INTEREST RATE REDUCTIONS HAVE GONE A LONG WAY TO RESTORE MARKET CONFIDENCE IN THE EUROPEAN MONETARY SYSTEM THE NEXT THREE MONTHS WILL BE TRYING THE BIGGEST WORRY IS LIKELY TO BE FRENCH PARLIAMENTARY ELECTIONS WHICH ARE SCHEDULED TO OCCUR IN TWO ROUNDS ON MARCH 21 AND MARCH 28 A CENTERRIGHT COALITION IS WIDELY EXPECTED TO TROUNCE THE GOVERNING SOCIALIST PARTY AND EITHER USHER IN A NEW PERIOD OF COHABITATION WITH PRESIDENT FRANCOIS MITTERRAND OR PROMPT THE PRESIDENT TO RESIGN MANY FOREIGNEXCHANGE EXPERTS THINK THE NEW FRENCH GOVERNMENT WOULD CONTINUE FRANCE'S POLICY OF KEEPING THE FRANC STRONG BUT ANY SIGNS OF THAT COMMITMENT WAVERING PROBABLY WILL ERODE SENTIMENT IN THE COMING WEEKS LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16595 MARKS UP MORE THAN FOUR PFENNIG FROM 16117 MARKS AT THE END OF THE PREVIOUS WEEK AGAINST THE YEN THE US CURRENCY WAS QUOTED AT 12445 YEN LITTLE CHANGED FROM 12465 A WEEK BEFORE ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16569 MARKS AND AT 12444 YEN THIS WEEK COULD SEE ANOTHER SHARP JUMP IN THE VALUE OF THE DOLLAR AGAINST THE MARK BUT MANY TRADERS CALL FOR A CORRECTION BACK TO 162 MARKS OR SO FIRST THERE'S GOOD TWOWAY FIGHTING GOING ON IN THE MARKET BETWEEN DOLLAR BUYERS AND SELLERS SAYS PETER PFAU FOREIGNEXCHANGE MANAGER AT DEAN WITTER REYNOLDS INC THE ABSENCE OF A CONSENSUS RESULTS PARTLY FROM CONFLICTING VIEWS ON FRIDAY'S US EMPLOYMENT REPORT AT FIRST GLANCE TRADERS CALLED JANUARY'S 106000 RISE IN NONFARM PAYROLLS BULLISH FOR THE DOLLAR WHICH RALLIED INITIALLY ON THE REPORT BUT RICHARD TRAINER CHIEF ECONOMIST FOR THE BANK OF TOKYO IN NEW YORK NOTES THAT THE NUMBER OF NONGOVERNMENT JOBS HAS INCREASED ONLY 02 IN THE 22 MONTHS SINCE THE ECONOMIC RECOVERY BEGAN AT THIS POINT IN PAST RECOVERIES HE SAYS PRIVATE JOBS WERE UP 6 THERE'S A TREMENDOUS SHORTFALL IN THE NUMBER OF NEW JOBS BEING CREATED THIS TIME AROUND HE SAYS I'M AFRAID THAT WE'RE NOT GOING TO SEE THE GAINS WE'RE EXPECTING IN INCOME AND THAT THE RUNUP IN CONSUMER SPENDING IS GOING TO BE SHORTLIVED THAT SUGGESTS A NEED FOR AN AGGRESSIVE FISCAL STIMULUS POLICY WHICH ULTIMATELY WOULD HELP THE DOLLAR BY SPURRING LONGTERM GROWTH MR TRAINER SAYS BUT IT ALSO LEAVES OPEN THE POSSIBILITY OF LOWER INTEREST RATES HELPING TO MAINTAIN THE WIDE GAP BETWEEN US AND GERMAN RATES THAT HAS KEPT THE DOLLAR UNDER PRESSURE FOR MONTHS NO ONE QUITE KNOWS HOW TO CUT IT MR TRAINER SAYS EVEN IF US RATES FALL GERMAN RATES WILL FALL FASTER SOME ECONOMISTS SAY THAT SHOULD HELP THE DOLLAR MORE THAN INDICATED BY DEALERS' REACTION TO THURSDAY'S CUTS IN TWO IMPORTANT GERMAN INTEREST RATES THE CUTS THEMSELVES A QUARTER OF A PERCENTAGE POINT IN THE DISCOUNT RATE AND HALF A PERCENTAGE POINT IN THE LOMBARD RATE WHICH THE BANK CHARGES ON COLLATERALIZED SUPPLEMENTAL BORROWINGS WERE NEGLIGIBLE ANALYSTS AGREE BUT IT WAS A REMARKABLE TURNAROUND FOR THE BUNDESBANK THEY SAY TRADITIONALLY THE GERMAN CENTRAL BANK HAS PLACED ITS ANTIINFLATION GOALS AHEAD OF INTRAEUROPEAN COOPERATION THE DANISH KRONE WHICH HAD BEEN UNDER FURIOUS SPECULATIVE ASSAULT FIRMED ON THE GERMAN ACTION BUT THE BANK ALSO ADDED LIQUIDITY TO THE BANKING SYSTEM BY CUTTING BANKS' RESERVE REQUIREMENTS MR PFAU OF DEAN WITTER POINTS OUT TAKEN TOGETHER THE IMPACT OF THE BUNDESBANK'S ACTIONS IS GREATER THAN THE MARKET IS GIVING THEM CREDIT FOR HE SAYS IN LIGHT OF LAST WEEK'S MIXED NEWS FOR THE DOLLAR SOME TRADERS EXPECT THE DOLLAR TO TRADE IN A RANGE OF ROUGHLY 163 TO 168 MARKS THAT EXPECTATION SHOWED UP FRIDAY IN SALES OF CURRENCY OPTIONS CURRENCY PLAYERS BUY OPTIONS TO HEDGE AGAINST SHARP PRICE MOVEMENTS THEY OFTEN SELL OPTIONS ON FRIDAY BECAUSE THEY DON'T WANT TO PAY TO HOLD THEM OVER THE WEEKEND WHEN PRICES AREN'T LIKELY TO CHANGE MUCH BUT THE DROP IN PRICES FRIDAY WAS STEEPER THAN USUAL TRADERS SAY IMPLIED VOLATILITY OPTIONS JARGON FOR ONE TYPE OF PRICE MEASUREMENT ON MARK OPTIONS DROPPED A FULL PERCENTAGE POINT FROM THURSDAY LEVELS TO ABOUT 125 FRIDAY AFTERNOON THE TRADING SUGGESTS THAT MARKET PLAYERS ARE EXPECTING THE DOLLAR TO CONSOLIDATE AFTER LAST WEEK'S GAINS SAYS CHRISTOPHER HAN ASSISTANT TREASURER AT SOCIETE GENERALE THE MARKET IS SAYING WE'LL GET A RANGE OF ABOUT 16316750 MARKS GLENN WHITNEY IN LONDON CONTRIBUTED TO THIS ARTICLE 9302080066 930208 REVIEW & OUTLOOK EDITORIAL KIMBA WHAT'S WRONG WATCHING THE KIMBA SEQUEL TO ZOE WE CAN ONLY HOPE THAT THE WHITE HOUSE GETS ITS ACT TOGETHER AT THE MOMENT IT SEEMS NOT ONLY INCOMPETENT BUT UNCOUTH AS IF RUN BY WELL A HILLIBILLY COUPLE FROM ARKANSAS THE PETULANCE TOWARD JUDGE KIMBA WOOD IS PARTICULARLY BOORISH JUDGE WOOD'S SIN IF YOU CAN CALL IT THAT WAS IN HIRING AN UNDOCUMENTED ALIEN BACK IN THE MORE CIVILIZED DAYS WHEN LAW ENFORCEMENT WAS THE GOVERNMENT'S BUSINESS RATHER THAN A HOMEMAKER'S YET IN THE BELTWAY MORAL FRENZIES SHE PROVED INDISTINGUISHABLE FROM ZOE BAIRD WHOSE TRANSGRESSION TOOK PLACE AFTER THE GOVERNMENT PRESUMED TO IMPOSE AN OUTLANDISH IMMIGRATION LAW MS BAIRD HAD OF COURSE BEEN MOWED DOWN IN A MURDEROUS CROSSFIRE BETWEEN RALPH NADER FRONTING FOR THE PLAINTIFF BAR AND RUSH LIMBAUGH PRESSING THE UNIMPEACHABLE POINT THAT DEMOCRATIC NOMINEES SHOULD BE HELD TO THE SAME KIND OF SCRUTINY AS REPUBLICAN ONES AND AS THE WHITE HOUSE LET MS BAIRD TWIST SLOWLY IN THE WIND NOW IT REFUSED TO GO TO BAT FOR JUDGE WOOD INDEED THE CLINTON APPARATUS NOW BLAMES HER FOR NOT UNDERSTANDING THE DEPTHS OF ITS OWN COWARDICE SOMEONE WITH ACCESS TO FBI REPORTS EVEN LEAKED WORD THAT AS A STUDENT AT THE LONDON SCHOOL OF ECONOMICS HER HONOR ONCE AUDITIONED AS A PLAYBOY BUNNY WE HAVE A SPECIAL PROSECUTOR REMEMBER INVESTIGATING WHETHER SOMEONE IN THE BUSH ADMINISTRATION INQUIRED TOO DILIGENTLY INTO WHAT PRESIDENT CLINTON DID BACK IN HIS STUDENT DAYS AT OXFORD THE SWIPE AT JUDGE WOOD IS NOT ONLY ILLMANNERED BUT NOT VERY SMART YET THE POINT HERE GOES BEYOND MANNERS AND COMPETENCE THE ULTIMATE BLAME FOR THE ADMINISTRATION'S PREDICAMENT LIES IN ITS IDEAS WHILE WE HAVE NO DESIRE TO FURTHER TARNISH JUDGE WOOD UNDERSTANDING THE WHOLE EPISODE REQUIRES RECOGNITION THAT SHE IS ONLY MARGINALLY QUALIFIED TO BE ATTORNEY GENERAL SHE IS A PERFECTLY PRESENTABLE DISTRICT JUDGE ADMIRED BY THOSE WHO KNOW HER PERSONALLY WHO HANDLED ONE BIG CASE WITHOUT EITHER DISASTER OR PARTICULAR BRILLIANCE SHE IS DISTINGUISHED FROM HUNDREDS OF OTHER JUDGES CHIEFLY BY HER GENDER AND THIS UNDERLYING TRUTH SERVES TO EXAGGERATE EVEN IMAGINARY NEGATIVES MUCH THE SAME WAS TRUE OF MS BAIRD THOUGH HER POSITIVES INCLUDED MANAGEMENT EXPERIENCE IN A LARGE ENTERPRISE IN FILLING A JOB AS IMPORTANT AS ATTORNEY GENERAL IN SHORT YOU ARE ASKING FOR TROUBLE IF YOUR FIRST REQUIREMENT IS MEETING SOME SEXUAL RACIAL OR ETHNIC QUOTA THIS IS GOOD NEITHER FOR THE GOVERNMENT NOR AS JUDGE WOOD AND MS BAIRD CAN TESTIFY FOR MEMBERS OF THE SUPPOSEDLY PREFERRED GROUP YET THE TALENT HUNT AT JUSTICE HAS ONLY FOLLOWED THE IDEOLOGY OF THE DEMOCRATIC PARTY IN THE NAME OF LOOKING LIKE AMERICA THIS IDEOLOGY NOW GIVES US A CABINET COMPRISING A COVEN OF LAWYERS A BRACE OF LOBBYISTS AND A GAGGLE OF CHARLES RIVER PHDS EVEN BEFORE THE INAUGURATION THE CLINTON FOLKS WERE WONDERING WHATEVER HAPPENED TO THEIR HONEYMOON AND NOW THE BELTWAY CONVENTIONAL WISDOM SEEMS TO BE THAT THEIR ERROR WAS CASTING ASIDE THE POLITICAL TYPES WITH A SENSE OF THE COUNTRY IT SEEMS TO US MORE PROFOUND TO SAY THAT THE HONEYMOON FIZZLED WITH THE UNRAVELING OF THE CLINTON CAMPAIGN'S CENTRAL LIE TO WIT THAT THE 1992 TICKET REPRESENTED SOMETHING CALLED THE NEW DEMOCRATS READY IN THE NAME OF EFFICIENCY ECONOMIC GROWTH AND POLITICAL SUCCESS TO MODERATE THE FAMILIAR AGENDA OF RACE AND ETHNIC QUOTAS WEAKNESS ABROAD AND PUNITIVE TAXES ON SUCCESS YET NO SOONER HAVE THEY WON THAN HILLARY REACQUIRES HER MAIDEN NAME THE BURNING DEFENSE ISSUE BECOMES THE STATUS OF GAYS AND THE ISSUE AT JUSTICE TURNS NOT ON CRIME BUT ON APPOINTING A WOMAN MR CLINTON'S BEST SHOT AT GIVING HIS ADMINISTRATION SOME STEERAGE IS TO GET AN OAR IN THE WATER WITH A SOLID ECONOMIC PROGRAM THAT IS ONE CENTERED ON CONTAINING GOVERNMENT SPENDING YET THIS SEEMS A FADING CHANCE AS THE LINEITEM VETO IS THROWN OVERBOARD TALK TURNS FROM TAX CUTS TO TAX INCREASES AND THE GENDER ISSUE OVERWHELMS JOB CREATION WE SEEM MORE LIKELY TO END UP WITH A RUBE GOLDBERG STIMULUS JUST AS RECOVERY ROARS INTO EXPANSION OUR HOPE FOR THE CLINTON ADMINISTRATION WAS BASED ON THE INSTINCT FOR POLITICAL SURVIVAL BOTH BILL AND HILLARY DISPLAYED DURING THE CAMPAIGN WE HOPE THAT THEY FIND IT AGAIN STARTING WITH UNDERSTANDING WHAT HAS HAPPENED TO THEM ON ZOE AND KIMBA THE POINT IS THAT THE CARTER ADMINISTRATION PROVED AND THE VOTERS UNDERSTOOD ALL ALONG THAT YOU CANNOT GOVERN THE NATION WITH THE AGENDA THAT HAS DOMINATED THE DEMOCRATIC PARTY EVER SINCE THE ABDICATION OF LYNDON JOHNSON 9302080065 930208 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO PURCHASE OF 51 FOOD STORES FROM GRAND UNION PLANNED GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ SAID IT AGREED TO BUY 48 OF GRAND UNION CO'S 51 BIG STAR FOOD STORES IN GEORGIA FOR 20 MILLION TO 25 MILLION THE COMPANIES SAID THE AGREEMENT WHICH IS CONTINGENT UPON RATIFICATION OF NEW COLLECTIVE BARGAINING AGREEMENTS BY TWO STORE UNIONS COULD BE COMPLETED BY SPRING GRAND UNION A PRIVATELY HELD SUPERMARKET CHAIN BASED IN WAYNE NJ SAID THE AGREEMENT WILL ALSO RELIEVE IT OF ABOUT 45 MILLION OF CAPITALIZED LEASE OBLIGATIONS A&P WHICH IS MAJORITYOWNED BY GERMAN RETAILER TENGELMANN GROUP OPERATES 1204 SUPERMARKETS IN 23 STATES THE DISTRICT OF COLUMBIA AND ONTARIO WHILE GRAND UNION OPERATES 303 RETAIL FOOD STORES IN EIGHT EASTERN STATES 9302080064 930208 BUSINESS BRIEF CREDIT LYONNAIS SA JUDGE THROWS OUT LAWSUIT FILED BY INVESTOR KERKORIAN A STATE SUPERIOR COURT JUDGE IN CALIFORNIA THREW OUT A COUNTERSUIT FILED BY INVESTOR KIRK KERKORIAN AND SOME FORMER ASSOCIATES AGAINST CREDIT LYONNAIS SA IN A CONTINUING BATTLE OVER THE SALE OF METROGOLDWYNMAYER INC IN 1990 JUDGE RICHARD HUBBELL GAVE MR KERKORIAN 20 DAYS TO REFILE THE CASE AND A SPOKESMAN SAID THE INVESTOR PLANS TO DO SO PROMPTLY THE COUNTERSUIT HAD SOUGHT 675 MILLION IN DAMAGES AND UNSPECIFIED PUNITIVE DAMAGES FOR ALLEGED VIOLATIONS OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW MR KERKORIAN'S COUNTERSUIT WAS FILED IN RESPONSE TO SUITS FILED IN DECEMBER BY METROGOLDWYNMAYER AND CREDIT LYONNAIS WHICH CHARGED MR KERKORIAN AND SEVERAL FORMER ASSOCIATES WITH BREACH OF FIDUCIARY DUTY WHEN THEY SOLD THE FILM STUDIO TO ITALIAN FINANCIER GIANCARLO PARRETTI MGM AND CREDIT LYONNAIS ACCUSED THEM OF SELLING THE STUDIO WITHOUT DISCLOSING ITS TRUE FINANCIAL CONDITION WHICH THE INVESTOR AND HIS ASSOCIATES DENY 9302080063 930208 INTERNATIONAL KRUPP HOESCH TO SHUT BLAST FURNACE ASSERT MOVE IS TEMPORARY SPECIAL TO THE WALL STREET JOURNAL DUESSELDORF GERMANY GERMAN STEELMAKERS KRUPP STAHL AG AND HOESCH STAHL AG WILL SHUT DOWN A BLAST FURNACE AT HOESCH'S DORTMUND WORKS FOR FIVE MONTHS BEGINNING MARCH 1 PUTTING SOME 600 WORKERS ON SHORTENED SHIFTS IF STEEL DEMAND CONTINUES TO BE WEAK THE TWO COMPANIES WHICH ARE IN THE PROCESS OF MERGING WILL THEN CLOSE THE BLAST FURNACE AT KRUPP'S RHEINHAUSEN WORKS FOR THE LAST FIVE MONTHS OF THE YEAR THAT IS A MOVE THAT WORKER REPRESENTATIVES FEAR COULD BE THE PRECURSOR TO TOTAL CLOSURE OF THE COMPLEX WHICH HAS 2000 WORKERS THE COMPANIES STRESSED THE LATEST ANNOUNCEMENT IS UNRELATED TO THE MERGER ARRANGEMENTS AND IS ONLY A TEMPORARY MOVE THAT RESPONDS TO WEAK DEMAND IN THE INDUSTRY BUT COMING AMID URGENT TALKS THROUGHOUT THE EUROPEAN STEEL INDUSTRY ABOUT HOW TO REDRESS THE PROBLEM OF SOME 25 MILLION TO 30 MILLION TONS OF OVERCAPACITY IN THE EUROPEAN COMMUNITY THE MOVE SEEMS AN INEVITABLE SIGN OF ANNOUNCEMENTS TO COME OF PERMANENT CLOSURES AT KRUPPHOESCH AND ELSEWHERE THE BOARD OF FRIED KRUPP AG HOESCH KRUPP WHICH HOPES TO REALIZE SOME 300 MILLION MARKS 1862 MILLION OF ANNUAL SAVINGS THROUGH THE FUSION OF THE HOESCH AND KRUPP STEEL DIVISIONS IS EXPECTED TO REACH A DECISION ABOUT THE FINAL STRUCTURE OF ITS STEEL OPERATIONS BY THE END OF THE MONTH ACCORDING TO A KRUPP STAHL SPOKESMAN ANALYSTS WIDELY EXPECT THAT THE ONLY WAY SUCH LARGE SAVINGS CAN BE ACHIEVED IS THROUGH THE CLOSURE OF ONE OF THE STEELWORKS 9302080062 930208 BUSINESS BRIEF WESTCORP HOLDING COMPANY HAD LOSS IN 4TH PERIOD OF 81 MILLION WESTCORP IRVINE CALIF A FINANCIAL SERVICES HOLDING COMPANY REPORTED A FOURTHQUARTER LOSS OF 81 MILLION OR 45 CENTS A SHARE AFTER SETTING ASIDE 262 MILLION IN THE PERIOD FOR LOANLOSS RESERVES IT HAD NET INCOME OF 59 MILLION OR 33 CENTS A SHARE A YEAR EARLIER FOR THE YEAR WESTCORP'S NET SANK TO 23 MILLION OR 13 CENTS A SHARE FROM THE PREVIOUS YEAR'S NET OF 21 MILLION OR 120 A SHARE DURING THE YEAR WESTCORP SET ASIDE A TOTAL OF 52 MILLION FOR LOAN AND REAL ESTATE OWNED LOSSES THE ACTION BOOSTED THE BANK'S RESERVE TO 87 OF NONPERFORMING LOANS UP FROM 55 AT THE END OF THE PREVIOUS QUARTER THE COMPANY ALSO SAID THE OFFICE OF THRIFT SUPERVISION INCREASED THE AMOUNT OF RISKBASED CAPITAL IT REQUIRES WESTCORP'S PRINCIPAL SUBSIDIARY WESTERN FINANCIAL SAVINGS BANK TO HOLD UNDER REGULATORY CAPITAL RULES THE MOVE DOEN'T AFFECT THE COMPANY'S BALANCE SHEET UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND PLACES THE BANK'S RISKBASED CAPITAL AT 87 9302080061 930208 BUSINESS BRIEF ADIDAS AG FIRM ACQUIRES SPORTS INC TO AID RIVALRY WITH NIKE ADIDAS AG A GERMAN SPORTSWEAR COMPANY SAID IT ACQUIRED SPORTS INC A US MARKETING CONCERN AS PART OF AN EFFORT TO COMPETE BETTER WITH NIKE INC TERMS OF THE SALE ANNOUNCED AT A TRADE SHOW IN ATLANTA WEREN'T DISCLOSED SPORTS INC BASED IN PORTLAND ORE WAS FOUNDED BY ROB STRASSER AND PETER MOORE FORMER VICE PRESIDENTMARKETING AND CREATIVE DIRECTOR RESPECTIVELY OF NIKE AN ATHLETIC FOOTWEAR CONCERN ALSO BASED IN PORTLAND THE TWO MEN LEFT NIKE IN 1987 AFTER LEADING THE COMPANY'S AIR JORDAN AND NIKE AIR MARKETING EFFORTS ADIDAS A CLOSELY HELD CONCERN SAID IT WILL REORGANIZE ITS NORTH AMERICAN OPERATIONS TO FORM A NEW COMPANY ADIDAS AMERICA THAT DIVISION WHICH WILL BE BASED IN PORTLAND WILL BE FORMED BY THE MERGER OF ADIDAS USA CURRENTLY BASED IN SPARTANBURG SC ADIDAS CANADA LTD IN TORONTO AND SPORTS INC 9302080060 930208 BUSINESS BRIEF LEASEWAY TRANSPORTATION CORP REORGANIZATION PLAN FILED WITH US BANKRUPTCY COURT LEASEWAY TRANSPORTATION CORP SAID IT FILED A REORGANIZATION PLAN WITH THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK WITH THIS MOVE THE TRANSPORTATION AND LOGISTICS SUPPORT SERVICES CONCERN MOVES CLOSER TO COMPLETING ITS PRENEGOTIATED FINANCIAL RESTRUCTURING LEASEWAY HAD FILED FOR CHAPTER 11 PROTECTION IN EARLY DECEMBER THE CLEVELAND COMPANY SAID ITS PLAN CONFORMS TO THE TERM SHEET NEGOTIATED AMONG ITS SENIOR LENDERS AND LARGER BONDHOLDERS PRIOR TO THE CHAPTER 11 FILING THE COMPANY SAID IT IS NOW COMPLETING ITS DISCLOSURE STATEMENT AND HAS RECEIVED AN INITIAL DRAFT OF A CREDIT AGREEMENT FROM ITS SENIOR CREDITORS THAT AGREEMENT PROVIDES FOR REFINANCING AFTER LEASEWAY EMERGES FROM CHAPTER 11 THE COMPANY SAID IT EXPECTS TO COMPLETE AND FILE THE DISCLOSURE STATEMENT SHORTLY IT IS CONTINUING TALKS WITH SENIOR CREDITORS AND OTHER PARTIES REGARDING THE NEW FINANCING AGREEMENT 9302080059 930208 BUSINESS BRIEF COASTAL CORP OFFERING OF PREFERRED STOCK IS AUTHORIZED BY DIRECTORS COASTAL CORP HOUSTON SAID ITS BOARD AUTHORIZED THE PUBLIC OFFERING OF UP TO 200 MILLION IN CUMULATIVE PREFERRED STOCK THE ENERGY COMPANY HASN'T FILED WITH THE SECURITIES AND EXCHANGE COMMISSION YET COASTAL SAID IT WILL USE THE CASH FROM THE STOCK ISSUE TO RETIRE HIGHCOST DEBT SEPARATELY STANDARD & POOR'S CORP IN NEW YORK AFFIRMED ITS RATINGS ON ABOUT 46 BILLION OF DEBT OUTSTANDING CITING COASTAL'S POSSIBLE SHUTDOWN OF INEFFICIENT REFINERIES AND REDUCTIONS IN REFINEDPRODUCT INVENTORIES S&P ALSO SAID THE PROPOSED PREFERREDSTOCK SALE AND LOWER CAPITALSPENDING GOALS ARE TANGIBLE ATTEMPTS TO REDUCE DEBT BUT MOODY'S INVESTORS SERVICE INC IN NEW YORK PLACED THE DEBT RATINGS OF COASTAL AND ITS ANR PIPELINE CO AND COLORADO INTERSTATE GAS CO UNITS UNDER REVIEW FOR POSSIBLE DOWNGRADE THE RATING AGENCY CITED WRITEDOWNS RELATED TO COASTAL'S REFINING AND MARKETING BUSINESS 9302080058 930208 BUSINESS BRIEF SYNERCOM TECHNOLOGY INC PROXY CONTEST IS AVOIDED BY AGREEMENT ON DIRECTORS SYNERCOM TECHNOLOGY INC SAID IT RESOLVED THE THREAT OF A PROXY FIGHT WITH STEEL PARTNERS LP BY OFFERING HALF THE SEATS ON ITS BOARD TO THE NEW YORK INVESTMENT CONCERN STEEL PARTNERS HOLDS A 148 STAKE OR 847410 COMMON SHARES IN THE HOUSTONBASED PRODUCER OF COMPUTER HARDWARE SOFTWARE AND SERVICES THE AGREEDUPON SLATE IF ELECTED AT SYNERCOM'S ANNUAL MEETING APRIL 2 WILL INCREASE THE SIZE OF THE BOARD TO SIX FROM FIVE SYNERCOM SAID THREE OF THE NOMINATED DIRECTORS WILL BE CURRENT BOARD MEMBERS AND THREE WILL BE ASSOCIATES OF STEEL PARTNERS WHICH JOINED WITH OTHER MINORITY SHAREHOLDERS TO FORM A SHAREHOLDERS COMMITTEE AND THREATEN A PROXY FIGHT SYNERCOM ALSO SAID THE AGREEMENT ALLOWS UNDER CERTAIN CIRCUMSTANCES THE BOARD TO POSTPONE OR ADJOURN THE ANNUAL MEETING IF THE COMPANY RECEIVES A WRITTEN ACQUISITION OFFER WHICH IN THE OPINION OF THE DIRECTORS IS IN THE BEST INTERESTS OF THE SHAREHOLDERS 9302080057 930208 INTERNATIONAL BRITISH AIR WITH NEW CHAIRMAN SEEKS TO END DAMAGE OF VIRGIN ATLANTIC ISSUE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL WITH A NEW CHAIRMAN IN PLACE BRITISH AIRWAYS PLC HUNKERS DOWN THIS WEEK HOPING TO AVOID MORE DAMAGE FROM ITS ALLEGED DIRTY TRICKS CAMPAIGN AGAINST COMPETING BRITISH CARRIER VIRGIN ATLANTIC AIRWAYS THE NEW CHAIRMAN SIR COLIN MARSHALL FORMERLY DEPUTY CHAIRMAN AND CHIEF EXECUTIVE IS SCHEDULED TO MEET THIS WEEK WITH VIRGIN CHAIRMAN RICHARD BRANSON WHO CONTINUES TO THREATEN FURTHER LEGAL ACTION AGAINST BRITISH AIRWAYS INCLUDING FILING AN ANTITRUST SUIT IN THE US MR BRANSON PROMISES TO ANNOUNCE HIS PLANS BY THE END OF THE WEEK VIRGIN ATLANTIC IS A UNIT OF VIRGIN GROUP PLC AS EXPECTED LORD KING THE 75YEAROLD PREVIOUS CHAIRMAN TOLD THE BRITISH AIRWAYS BOARD OF DIRECTORS FRIDAY THAT HE WOULD RETIRE IMMEDIATELY FIVE MONTHS AHEAD OF SCHEDULE AT THE BOARD'S REQUEST HE WILL TAKE ON THE HONORARY ROLE OF PRESIDENT LORD KING INSISTED THAT HIS EARLY DEPARTURE WASN'T A RESIGNATION AND HAD NOTHING TO DO WITH THE VIRGIN SCANDAL BUT THE DISPUTE ATTRACTED NUMEROUS CALLS IN THE BRITISH MEDIA FOR A MANAGEMENT SHAKEUP BRITISH AIRWAYS ALREADY HAS PUBLICLY APOLOGIZED TO VIRGIN AND AGREED TO PAY 610000 879620 PLUS COURT FEES TO SETTLE A LIBEL SUIT FILED BY VIRGIN AND MR BRANSON ALSO DEPARTING IS ONE OF LORD KING'S TOP ADVISERS DAVID BURNSIDE DIRECTOR OF PUBLIC AFFAIRS WHO WAS EXPECTED TO DEPART ALONG WITH LORD KING IN JULY MR BURNSIDE WAS WIDELY ASSOCIATED WITH THE DIRTY TRICKS CAMPAIGN IN WHICH BRITISH AIRWAYS EMPLOYEES ALLEGEDLY TRIED TO POACH VIRGIN CUSTOMERS AND BREAK INTO VIRGIN'S COMPUTER SYSTEM ACCORDING TO A BRITISH AIRWAYS STATEMENT MR BURNSIDE WILL EMBARK ON AN INDEPENDENT BUSINESS CAREER IN THE AREAS OF COMMUNICATIONS PUBLISHING AND PUBLIC AFFAIRS MR BURNSIDE DIDN'T RESPOND TO REQUESTS FOR INTERVIEWS MEANWHILE SIR COLIN 59 ABANDONS THE POST OF CHIEF EXECUTIVE OFFICER WHICH WILL BE LEFT VACANT IN AN APPARENT ATTEMPT TO APPEASE CRITICS CALLING FOR A SEPARATION OF THE DUTIES OF CHAIRMAN AND CEO SOME OF THOSE DUTIES SUCH AS DAYTODAY MANAGEMENT WILL BE HANDLED BY ROBERT AYLING WHO WAS PROMOTED FROM MARKETING DIRECTOR TO THE NEWLY CREATED POST OF MANAGING DIRECTOR IN ADDITION NONEXECUTIVE DIRECTOR SIR MICHAEL ANGUS DEPUTY CHAIRMAN OF WHITBREAD PLC WAS ASKED BY THE AIRLINE'S BOARD TO TAKE ON THE POST OF NONEXECUTIVE DEPUTY CHAIRMAN HE WILL BE RESPONSIBLE FOR KEEPING TABS ON CORPORATE CONDUCT THE NEWS THAT THE HIGHLY RESPECTED SIR COLIN WOULD TAKE OVER THE REINS LIFTED BRITISH AIRWAYS' STOCK NEARLY 3 TO 296 PENCE ON THE LONDON STOCK EXCHANGE ON FRIDAY THIS IS THE PAIR LORD KING AND SIR COLIN THAT BROUGHT THE COMPANY INTO BEING ONE OF THE WORLD'S MOST PROFITABLE AIRLINES SAID DAN WHITE CHIEF TRANSPORT ANALYST FOR COUNTY NATWEST IN LONDON INDEED WHEN FORMER PRIME MINISTER MARGARET THATCHER ASKED LORD KING THEN SIMPLY JOHN KING TO PREPARE THE AIRLINE FOR PRIVATIZATION MANY INDUSTRY OFFICIALS SAID THE TASK WOULD BE IMPOSSIBLE THE AIRLINE HAD A REPUTATION FOR POOR SERVICE AND ITS BLOATED STAFFING AND OPERATIONS LED TO HUGE LOSSES BUT WITHIN A YEAR OF HIS 1981 APPOINTMENT THE GRUFF LORD KING WAS ABLE TO SHOW AN OPERATING PROFIT IN 1983 HE BROUGHT IN SIR COLIN WHOSE EMPHASIS ON CUSTOMER SERVICE LED TO IMPRESSIVE RESULTS IN HIS PREVIOUS JOBS IN THE CAR RENTAL INDUSTRY BY 1984 THE AIRLINE WAS POSTING A PRETAX PROFIT IN 1987 IT WAS SUCCESSFULLY PRIVATIZED AND HAS SINCE BECOME ONE OF THE MOST PROFITABLE AIRLINES IN THE WORLD TO HAVE BEEN CHAIRMAN OF BRITISH AIRWAYS DURING THESE LAST 12 MEMORABLE YEARS I REGARD AS THE CROWNING ACHIEVEMENT OF MY WORKING LIFE LORD KING SAID IN A STATEMENT LIKE LORD KING WHO STARTED OUT AS A FACTORY WORKER SIR COLIN'S MOVE TO THE NO 1 SPOT AT THE WORLD'S NO 1 INTERNATIONAL AIRLINE HAS BEEN A LONG CLIMB SIR COLIN STARTED HIS CAREER IN 1951 AS A PURSER ABOARD SHIPS FOR ORIENTAL STEAM NAVIGATION CO BUT IT WAS AS A MANAGER AT HERTZ THAT HE FIRST DISPLAYED HIS WIDELY PRAISED MANAGEMENT SKILLS AND HIS FOCUS ON MARKETING AND CUSTOMER SERVICE WHICH THEN EARNED HIM THE SPOT OF CHIEF EXECUTIVE OF AVIS HE FOLLOWED THAT WITH TWO YEARS AT BRITISH RETAILER SEARS PLC BEFORE LORD KING TAPPED HIM AS CHIEF EXECUTIVE 9302080056 930208 BUSINESS BRIEF ALLTEL CORP FIRM WILL DROP 220 JOBS BY CONSOLIDATING 2 OFFICES ALLTEL CORP SAID IN LITTLE ROCK ARK THAT IT WILL ELIMINATE ABOUT 220 JOBS BY CLOSING ITS JAMESTOWN NY REGIONAL HEADQUARTERS AND CONSOLIDATING ITS SERVICES INTO THE HUDSON OHIO REGIONAL HEADQUARTERS SOME OF THE 375 JAMESTOWN JOBS WILL BE TRANSFERRED CHAIRMAN JOE FORD SAID BUT EXACT NUMBERS HAVEN'T YET BEEN SET ALLTEL IS A TELEPHONE AND CELLULAR COMMUNICATIONS COMPANY THE RESTRUCTURING IS UNRELATED TO ALLTEL'S AGREEMENT TO PURCHASE GTE CORP'S GEORGIA TELEPHONE OPERATIONS WHICH WILL INVOLVE A 440 MILLION PAYMENT TO GTE ALONG WITH A TRANSFER OF ALLTEL'S TELEPHONE OPERATIONS IN ILLINOIS INDIANA AND MICHIGAN TO GTE 9302080055 930208 WHAT'S FLORIDA TO DO WITH AN EXPLOSION OF MELALEUCA TREES IMPORTING AUSTRALIAN INSECTS IS ONE DEFINITE POSSIBILITY IF THEY ARE PICKY EATERS BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI TODAY LET US REVIEW SOME HOPEFUL DEVELOPMENTS IN THE BATTLE AGAINST EXPLODING TREES EXPLODING TREES ARE MELALEUCA QUINQUENERVIA OR MELALEUCA THEIR LEAVES CONTAIN AN OIL THAT IN A FIRE CAN CAUSE AN ENTIRE TREETOP TO EXPLODE IN FLAMES WHICH THEN IGNITES THE TOPS OF NEIGHBORING MELALEUCA TREES LIKE MATCHSTICKS BECAUSE MELALEUCA TREES GROW IN DENSE THICKETS AND THEIR BARK IS HIGHLY COMBUSTIBLE TOO THE FIRES CAN BE CATASTROPHIC A BIG ONE WEST OF HERE IN 1985 BURNED THOUSANDS OF ACRES AND TOOK THREE MONTHS TO PUT OUT FOR THAT AND OTHER REASONS THE MELALEUCA IS VIEWED IN THESE PARTS AS THE TREE FROM HELL A NATIVE OF AUSTRALIA AND MALAYSIA IT WAS IMPORTED TO SOUTH FLORIDA EARLY IN THE CENTURY AND AS AN ALIEN WITHOUT ANY NATURAL ENEMIES WENT WILD TURNING FORMERLY VIBRANT PLANT COMMUNITIES INTO MELALEUCA FORESTS THE AGRICULTURE DEPARTMENT HAS DECLARED IT A NOXIOUS WEED AN OFFICIAL FLORIDA WEED ALERT PUBLICATION CALLS IT THE MOST SERIOUS THREAT TO THE EVERGLADES ECOSYSTEM IT IS A HUMANHEALTH HAZARD RELEASING CHEMICALS THAT CAN CAUSE SEVERE ALLERGIC REACTIONS INCLUDING RESPIRATORY PROBLEMS WELTS AND BLISTERS SO FOR YEARS AUTHORITIES HAVE BEEN TRYING TO HALT THE MARCH OF THE MELALEUCA BUT WITH SCANT SUCCESS BULLDOZING CAN STIMULATE GROWTH AS CAN FIRE HERBICIDES ARE ONLY PARTIALLY EFFECTIVE EXPERTS SAY THE FASTGROWING TREE WHICH CAN REACH 100 FEET IS SPREADING AT A RATE OF 50 ACRES A DAY IN SOUTH FLORIDA WHERE THE WEATHER ENCOURAGES ITS GROWTH NOW THE GOVERNMENT UNDER TIGHT SECURITY IS WORKING ON A NEW CLASS OF WEAPONS IN A TRIPLELOCKED LABORATORY FINAL TESTING HAS BEGUN ON A DOOMSDAY RESPONSE TO THE DREADFUL TREES ALIEN BUGS TRY TO BRUSH HIM OFF GARY BUCKINGHAM SUGGESTS AS HE DROPS A TINY BROWN WEEVIL OXYOPS VITIOSA ONTO THE SLEEVE OF A VISITOR'S WHITE LAB COAT IN THE MAXIMUMSECURITY ROOM OF THE FLORIDA AGRICULTURE DEPARTMENT'S QUARANTINE FACILITY IN GAINESVILLE NEAR THE UNIVERSITY OF FLORIDA CAMPUS THE BUG DIGS IN SEE HOW THEY TRY TO HOLD ON SAYS DR BUCKINGHAM A RESEARCH ENTOMOLOGIST WITH THE US AGRICULTURE DEPARTMENT JUST LIKE A CAT GRABBING ONTO SOMETHING HE PLUCKS THE SMALL BEETLE OFF THE ARM AND RETURNS IT TO ITS GLASSTOPPED CAGE IT GRABS ON TO A SHINY GREEN LEAF AND CALMLY RESUMES ITS MELALEUCA LUNCH IN AUSTRALIA THE MELALEUCA IS JUST ANOTHER WELLBEHAVED TREE THANKS TO A HOST OF NATURAL ENEMIES THAT FEED ON IT AND KEEP IT UNDER CONTROL A FEW YEARS BACK FLORIDA'S ANTIMELALEUCA FORCES STARTED LOOKING INTO THE POSSIBILITY OF IMPORTING SOME OF THOSE HUNGRY CREATURES TO TAME THE TREE HERE A PROCESS KNOWN AS BIOLOGICAL CONTROL A LAB WAS SET UP IN AUSTRALIA HEADED BY A DEPARTMENT OF AGRICULTURE ENTOMOLOGIST AFTER SCREENING MORE THAN 400 BUG CANDIDATES IT SETTLED ON 20 OR SO THAT WERE VERY PICKY EATERS THEY SEEMED TO EAT NOTHING BUT THE MELALEUCA LAST JULY A SHIPMENT OF THE SEMIFINALIST WEEVIL THAT CLINGS LIKE A CAT ARRIVED AT DR BUCKINGHAM'S QUARANTINE LAB HAVING SURVIVED THE PRELIMINARY JUDGING THE BUG NOW IS INVOLVED IN THE ALLIMPORTANT PERSONALITY COMPETITION THE GOAL IS TO MAKE SURE THAT IF THE WEEVIL IS RELEASED IT WON'T TURN INTO EVEN MORE OF A MONSTER THAN THE MELALEUCA SO FAR SO GOOD SAYS DR BUCKINGHAM AS HE SURVEYS A RACK OF JARS CONTAINING WEEVILS AND VARIOUS FLORIDA LEAVES RANGING FROM DISTANT RELATIVES OF THE MELALEUCA SUCH AS EUCALYPTUS TO SUCH UNRELATED PLANTS AS GRAPEFRUIT AND BALD CYPRESS THE ONLY LEAVES THAT SHOW ANY DAMAGE ARE FROM MELALEUCA TREES AND THEY ARE BADLY EATEN UP THAT PATTERN PROBABLY WON'T CHANGE TED CENTER THE US AGRICULTURE DEPARTMENT ENTOMOLOGIST IN FORT LAUDERDALE WHO IS COORDINATING THE ANTIMELALEUCA EFFORT SAYS INSECTS THAT FEED ON MORE THAN ONE PLANT USUALLY PICK PLANTS CLOSELY RELATED TO THE SPECIES ON WHICH THEY LIVE AND BREED AND WE DON'T REALLY HAVE ANY CLOSE RELATIVES TO MELALEUCA HERE DR CENTER SAYS THERE HAS NEVER BEEN A SLIPUP IN THIS TYPE OF BIOCONTROL WORK WHICH HAS BEEN GOING ON IN THE US FOR DECADES OVER 200 SPECIES OF INSECTS HAVE BEEN INTRODUCED WORLDWIDE TO CONTROL AROUND 100 SPECIES OF PLANTS HE SAYS AND NONE HAVE EVER BECOME PESTS THEMSELVES THE TESTING IN THIS CASE COULD TAKE A YEAR OR MORE MEANWHILE THE SCIENTISTS PLAN SOON TO SEEK APPROVAL TO IMPORT A SECOND MELALEUCA LOVER A SAWFLY THE TWO BUGS COMPLEMENT EACH OTHER THE WEEVIL FEEDS ON THE TIPS OF BRANCHES WHERE NEW GROWTH OCCURS THE SAWFLY IS A DEFOLIATOR EVENTUALLY HALF A DOZEN OR MORE TYPES OF BUGS PROBABLY WILL BE NEEDED TO CONTROL THE MELALEUCA HERE THE PLANS COULD FALL APART HOWEVER OVER MONEY NEARLY 10 STATE AGENCIES IN FLORIDA HAVE BEEN FINANCING THE MELALEUCA WAR WHICH FOR THE PAST FEW YEARS HAS HAD AN ANNUAL BUDGET OF NEARLY 350000 BUT FLORIDA IN A SEVERE BUDGET CRUNCH MAY SO CUT SPENDING THAT DR CENTER FEARS WE'LL HAVE TO DROP THE PROJECT ALTOGETHER EVEN WITHOUT MONEYRELATED DELAYS SOME PEOPLE THINK BIOCONTROL IS TOO SLOW WE CAN'T WAIT FOR THE WEEVIL TO DO ITS THING BECAUSE MEANWHILE THE MELALEUCA IS DOING ITS THING SAYS JULIA F MORTON A UNIVERSITY OF MIAMI TROPICALPLANT EXPERT WE'VE GOT MILLIONS OF MELALEUCA CONTROLLING THE TREE PRESUMABLY WOULD TAKE ZILLIONS OF BUGS INDEED EXPERTS ESTIMATE THAT MELALEUCA TREES COVER AT LEAST 380000 ACRES OF SOUTH FLORIDA AND SOME PUT THE TOTAL AT MORE THAN 15 MILLION ACRES THE TREE IS FOUND AS FAR NORTH AS GAINESVILLE BUT IT DOESN'T LIKE COLD DAN THAYER DIRECTOR OF VEGETATION MANAGEMENT FOR THE SOUTH FLORIDA WATER MANAGEMENT DISTRICT SAYS THE CURRENT STATEWIDE CONTROL EFFORT MAINLY HACK AND SQUIRT WORK IN WHICH TREES ARE CUT DOWN AND THE SITE SPRAYED WITH A HERBICIDE IS ABOUT HALF WHAT IT SHOULD BE TO JUST KEEP UP WITH THE SPREAD AND MORE TROUBLE COULD BE ON THE WAY ALTHOUGH IT'S TOO EARLY TO SEE THE EFFECT OF SEEDS BLOWN AROUND BY HURRICANE ANDREW LAST SUMMER MR THAYER EXPECTS A TREMENDOUS PROBLEM AS THEY GROW INTO TREES 9302080054 930208 REICHMANN TO MANAGE REAL ESTATE FUND SET UP BY SOROS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FINANCIER GEORGE SOROS SAID HE IS SETTING UP A 525 MILLION REAL ESTATE FUND TO BE MANAGED BY PAUL REICHMANN A ONETIME CONTROLLING SHAREHOLDER OF THE OLYMPIA & YORK PROPERTY EMPIRE MR SOROS OVERSEES THE 35 BILLION QUANTUM FUND AND SEVERAL OTHER OFFSHORE MUTUAL FUNDS A VETERAN GLOBAL INVESTOR HE ATTRACTED WIDE NOTICE LAST YEAR BY AGGRESSIVE CURRENCY TRADING THAT PITTED HIM AGAINST EUROPEAN CENTRAL BANKS THAT TRADING ULTIMATELY PRODUCED MORE THAN 1 BILLION IN PROFITS FOR MR SOROS'S FUNDS MR SOROS SAID THE NEW FUND QUANTUM REALTY FUND AMOUNTS TO A MAJOR BET THAT THE WORLD'S DEPRESSED REAL ESTATE MARKETS ARE READY FOR A REBOUND IN A PHONE INTERVIEW HE ACKNOWLEDGED THAT OFFICE VACANCY RATES ARE HIGH RENTAL RATES ARE LOW AND MANY DEVELOPERS HAVE BEEN PUSHED INTO BANKRUPTCY PROCEEDINGS BUT HE ASSERTED THAT'S WHAT CREATES THE BUYING OPPORTUNITY MR REICHMANN HIMSELF IS AMONG THE DEVELOPERS WHO HAVE TAKEN A POUNDING IN THE CURRENT REAL ESTATE SLUMP A FEW YEARS AGO HIS FAMILY'S NET WORTH WAS ESTIMATED IN THE BILLIONS OF DOLLARS REFLECTING LARGE REAL ESTATE HOLDINGS IN CANADA NEW YORK AND LONDON BUT OLYMPIA & YORK DEVELOPMENTS LTD'S HUGE LOSSES ON THE DEVELOPMENT OF CANARY WHARF A FINANCIAL CENTER IN LONDON HAVE SENT MAJOR PIECES OF THE REICHMANN HOLDINGS INTO BANKRUPTCYLAW PROCEEDINGS FOR MR REICHMANN TEAMING UP WITH MR SOROS REPRESENTS A RETURN TO THE WORLD OF BIGTIME REAL ESTATE TRANSACTIONS PEOPLE KNOWLEDGEABLE WITH MR REICHMANN'S ACTIVITIES HAD SAID LAST MONTH THAT HE WAS TRYING TO LINE UP BACKERS FOR A PROPERTYINVESTMENT FUND QUANTUM REALTY FUND IS EXPECTED TO START OPERATIONS NEXT MONTH IT WILL SEEK TO BUY EXISTING OFFICE PROPERTIES IN THE US AND CANADA MR SOROS SAID AND MAY USE BORROWED MONEY TO INCREASE ITS BUYING POWER A SPOKESMAN FOR MR REICHMANN WOULDN'T COMMENT ON THE NEW FUND HOWEVER A PERSON KNOWLEDGEABLE ABOUT THE ARRANGEMENT SAID THE FUND WILL BE MANAGED BY A NEW COMPANY CALLED REICHMANN INTERNATIONAL A JOINT VENTURE EQUALLY OWNED BY MESSRS REICHMANN AND SOROS IT'S UNCLEAR HOW BANKS THAT HAVE LENT MONEY TO OLYMPIA & YORK WILL REGARD MR REICHMANN'S LATEST VENTURE THE BANKRUPTCYLAW REORGANIZATION OF OLYMPIA & YORK'S CANADIAN INTERESTS APPROVED BY A TORONTO JUDGE FRIDAY DOESN'T EXPLICITLY PREVENT MR REICHMANN FROM STARTING NEW BUSINESSES BUT BANKERS STILL MAY BE SOMEWHAT SURPRISED TO SEE MR REICHMANN RETURNING TO ACTION SO QUICKLY WITH A NEW SOURCE OF CAPITAL FOR HIS PART MR SOROS SAYS HE ISN'T TROUBLED BY OLYMPIA & YORK'S PROBLEMS IN LONDON THE FINANCIAL DIFFICULTIES THAT OVERTOOK CANARY WHARF HAVE TAUGHT ALL INVESTORS IMPORTANT LESSONS HE SAID WHICH WE INTEND TO APPLY MR SOROS ALSO ACKNOWLEDGED THAT AS HIS GROUP OF MUTUAL FUNDS KEEPS GETTING BIGGER HE IS HARDPRESSED TO FIND WAYS TO DEPLOY ALL OF HIS FUNDS' MONEY ALL TOLD HE CURRENTLY OVERSEES ABOUT 7 BILLION AND HE PERIODICALLY USES DEBT LEVERAGE TO INCREASE HIS BUYING POWER THREEFOLD OR MORE THE CURRENCY MARKETS COULD PROBABLY TAKE LARGE AMOUNTS BUT THE OTHER MARKETS BONDS AND STOCKS HAVE THEIR LIMITATIONS HE SAID WE'RE LIKE A SUPERTANKER IN A WAY WE'RE VERY EFFICIENT BUT WE CAN ONLY PUT INTO TWO OR THREE PORTS SINCE ITS FOUNDING IN 1973 AS A 10 MILLION FUND QUANTUM FUND HAS AVERAGED ANNUAL GAINS OF MORE THAN 30 ON ITS PORTFOLIO THE FUND WHICH IS INCORPORATED IN THE NETHERLANDS ANTILLES AND ISN'T OPEN TO US RESIDENTS TURNED IN ONE OF ITS BEST YEARS IN 1992 CLIMBING 68 IN VALUE MR SOROS SAID HE EXPECTS MOST OF THE CAPITAL FOR QUANTUM REALTY FUND TO COME FROM EXISTING QUANTUM FUND SHAREHOLDERS WHO GENERALLY ARE WEALTHY EUROPEANS OR NONUS BANKS THESE HOLDERS WILL RECEIVE A LARGE CASH DIVIDEND AT THE END OF THIS MONTH WHICH THEY WILL BE ENCOURAGED TO ROLL OVER INTO THE NEW FUND IN ADDITION MR SOROS SAID HE AND MR REICHMANN TOGETHER WILL CONTRIBUTE 75 MILLION TO 100 MILLION TO THE NEW FUND MR SOROS SAID THAT WHILE IT'S CONCEIVABLE THAT QUANTUM FUND HOLDERS WON'T ROLL THEIR MONEY INTO THE NEW FUND HE DOESN'T EXPECT THAT WILL BE A PROBLEM HE ALSO SAID VARIOUS SOROS EMPLOYEES AND FAMILY INTERESTS MAY INVEST AS MUCH AS 130 MILLION WITH THE NEW FUND GIVING IT 655 MILLION OF CAPITAL TO WORK WITH SEPARATELY FROM THE FUND MR SOROS SAID HE MAY TEAM UP WITH THE REICHMANNS TO BUILD SOME COMMERCIAL REAL ESTATE IN DEVELOPING COUNTRIES SUCH AS MEXICO SUCH PROJECTS WOULD BE BANKROLLED MOSTLY WITH MR SOROS'S OWN CAPITAL THOUGH QUANTUM REALTY FUND MIGHT PARTICIPATE TO A SMALLER EXTENT MR SOROS SAID THAT WHILE HE HAS KNOWN THE REICHMANN FAMILY FOR YEARS BECAUSE OF THEIR OVERLAPPING INTEREST IN EASTERN EUROPEAN PHILANTHROPY THE IDEA FOR SETTING UP A REAL ESTATE FUND IS RELATIVELY RECENT UP UNTIL A YEAR AGO I HAD NEVER INVESTED IN REAL ESTATE MR SOROS SAID HOWEVER THE NEW FUND PERFORMS FOR INVESTORS IT SHOULD BE AT LEAST A MODEST MONEYMAKER FOR MR REICHMANN HE AND MR SOROS WILL SHARE A 15 ANNUAL MANAGEMENT FEE ON THE FUND'S ASSETS THEY ALSO WILL SPLIT 20 OF ANY PROFITS THAT THE FUND ACHIEVES BEYOND A MINIMUM HURDLE RATE OF 7 A YEAR IN THE PAST FEW YEARS MR SOROS HAS SET UP THREE OTHER SATELLITE FUNDS IN AN EFFORT TO KEEP QUANTUM FUND FROM GETTING TOO BLOATED THE LARGEST OF THESE QUASAR INTERNATIONAL FUND NOW HAS 13 BILLION IN ASSETS 9302080053 930208 BUSINESS BRIEFS CATELLUS DEVELOPMENT CORP A SAN FRANCISCO REAL ESTATE COMPANY IS OFFERING THREE MILLION SHARES OF SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK AT 50 EACH TPI ENTERPRISES INC A RESTAURANT FRANCHISEE AGREED IN PRINCIPLE TO SELL TPI SHARES WARRANTS AND DEBENTURES VALUED AT 30 MILLION TO AIRLIE GROUP LP AND TO INVESTORS SID AND LEE BASS ADDINGTON RESOURCES INC ACQUIRED NERCO COAL CORP'S WEST VIRGINIA MINING OPERATIONS AND 80 MILLION TONS OF LOWSULFUR COAL RESERVES FOR 3 MILLION AND 95 MILLION IN ROYALTY PAYMENTS SYNBIOTICS CORP WAS GRANTED APPROVAL BY THE DEPARTMENT OF AGRICULTURE TO MARKET A DIAGNOSTIC TEST FOR BRUCELLOSIS A BACTERIAL DISEASE IN CATTLE FEDERAL REALTY INVESTMENT TRUST PURCHASED THE PAN AM SHOPPING CENTER IN FAIRFAX VA FOR 213 MILLION FIRST CONNECTICUT SMALL BUSINESS INVESTMENT CO STOCKHOLDERS VOTED TO CHANGE THE NAME OF THE COMPANY TO FIRST CONNECTICUT CAPITAL CORP 9302080052 930208 MICROSOFT WINS FTC REPRIEVE ON INJUNCTION AGENCY WON'T FORCE HALT TO PRACTICES RIVALS SAY VIOLATE ANTITRUST LAW BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SHARPLY SPLIT FEDERAL TRADE COMMISSION DECLINED TO SEEK A PRELIMINARY INJUNCTION TO FORCE MICROSOFT CORP TO HALT CERTAIN BUSINESS PRACTICES THAT ITS COMPETITORS CLAIM VIOLATE ANTITRUST LAW WITH A 22 VOTE ACCORDING TO PEOPLE KNOWLEDGEABLE ABOUT FRIDAY'S CLOSEDDOOR MEETING THE COMMISSIONERS REJECTED STAFF RECOMMENDATIONS THAT THE AGENCY SEEK AN INJUNCTION TO PREVENT MICROSOFT FROM CREATING BUILTIN INCOMPATIBILITY IN ITS SOFTWARE THAT INCOMPATIBILITY FOR EXAMPLE ALLOWS MICROSOFT'S POPULAR WINDOWS PROGRAM TO WORK ONLY WITH THE COMPANY'S DISK OPERATING SYSTEM KNOWN AS MSDOS AND NOT A COMPETITOR'S THE COMMISSION ALSO DECLINED TO SEEK AN INJUNCTION TO HALT THE REDMOND WASH COMPANY'S ALLEGED PRACTICE OF USING ITS NEAR MONOPOLY IN OPERATING SOFTWARE TO PRESSURE COMPUTER EQUIPMENT MANUFACTURERS TO PAY A DISCOUNTED MSDOS FEE FOR EVERY MACHINE THEY SELL IF THE MANUFACTURERS WANT MSDOS IN ANY OF THEIR MACHINES THOUGH THE TIE VOTE REPRESENTS AN INITIAL REPRIEVE FOR MICROSOFT IT DOESN'T PRECLUDE THE AGENCY FROM TAKING ADMINISTRATIVE ACTION AGAINST THE ALLEGED ACTIVITIES COVERED UNDER THE PROPOSED INJUNCTION THE COMPANY'S CHAIRMAN WILLIAM GATES MET WITH COMMISSIONERS LAST WEEK IN AN EFFORT TO FORESTALL ANY ACTION AGAINST THE COMPANY HAD THE FTC VOTED TO SEEK A PRELIMINARY INJUNCTION FROM FEDERAL COURT IT WOULD HAVE IMMEDIATELY HALTED THE TARGETED BUSINESS PRACTICES WHILE ALLOWING THE AGENCY TO PURSUE PERMANENT COURT OR ADMINISTRATIVE REMEDIES SHOULD THE COMMISSION'S MEMBERSHIP CHANGE THOUGH THAT DOESN'T APPEAR IMMINENT THE STAFF RECOMMENDATION COULD BE VOTED ON AGAIN COMMISSIONERS DENNIS YAO AND JANET STEIGER THE CHAIRWOMAN VOTED FOR THE ENFORCEMENT ACTION WHILE MARY AZCUENAGA AND DEBORAH OWEN WERE OPPOSED PEOPLE FAMILIAR WITH THE VOTE SAID COMMISSIONER ROSCOE STAREK DIDN'T PARTICIPATE APPARENTLY BECAUSE HE HAS A FINANCIAL CONFLICT OF INTEREST A SUBSTANTIAL PORTION OF THE CLOSEDDOOR MEETING WAS DEVOTED TO WHAT THE COMMISSION SHOULD DISCLOSE TO THE PUBLIC ABOUT THE SESSION FTC RULES PREVENT THE COMMISSION FROM EVEN ACKNOWLEDGING SUCH INVESTIGATIONS IN THE END THE COMMISSIONERS DECIDED TO ISSUE AN UNUSUAL STATEMENT THAT WAS MEANT TO RECOGNIZE THE HIGH INTEREST IN THE MICROSOFT CASE WHILE NOT VIOLATING CONFIDENTIALITY RULES BY EVEN MENTIONING THE NAME OF THE SOFTWARE GIANT THE ENTIRE STATEMENT SAID AT A CLOSED COMMISSION MEETING TO DISCUSS FTC STAFF RECOMMENDATIONS REGARDING A NONPUBLIC LAWENFORCEMENT MATTER THE COMMISSION DID NOT COME TO A FINAL DECISION AND WILL RECONVENE IN THE NEAR FUTURE THERE WAS NO MOTION TO CLOSE THE CASE NO DATE FOR THE NEXT MEETING WAS ANNOUNCED THE COMMISSIONERS COULD SEEK A COURT INJUNCTION AGAINST MICROSOFT FOR ENGAGING IN OTHER BUSINESS PRACTICES THAT ITS COMPETITORS CLAIM ARE UNFAIR THOUGH SUCH ACTION IS NOW CONSIDERED UNLIKELY RIVALS HAVE ACCUSED MICROSOFT AMONG OTHER THINGS OF ENGAGING IN ILLEGALLY TYING SALES OF ITS APPLICATIONS SOFTWARE SUCH AS WORD PROCESSING AND SPREADSHEETS TO THE SALE OF MSDOS AND UNFAIRLY BOLSTERING ITS OWN APPLICATIONS DIVISIONS BY PROVIDING THEM WITH INFORMATION ABOUT MSDOS THAT ISN'T AVAILABLE TO COMPETITORS REPRESENTATIVES OF THREE MICROSOFT RIVALS NOVELL INC LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC ALSO MET WITH THE COMMISSIONERS LAST WEEK IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MICROSOFT SHARES ROSE 4 TO 89 ON VERY HEAVY VOLUME OF 55 MILLION SHARES 9302080051 930208 PUBLISHING BUSHERA MEMOIRS AREN'T HOTLY SOUGHT BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FAT FEES FOR POLITICAL MEMOIRS HAVE GONE THE WAY OF REAGANOMICS BARBARA BUSH DAN QUAYLE AND JAMES BAKER ALL SOLD THEIR MEMOIRS IN THE PAST SEVERAL WEEKS AND MORE BUSHERA BOOKS ARE UNDER NEGOTIATION BUT PUBLISHERS ARE SIGNING A MUCH SMALLER CROP OF BOOKS THAN THE FLOOD OF TELLALLS FROM THE REAGAN ADMINISTRATION AND THEY ARE PAYING MORE MODEST PRICES PUBLISHERS ARE STILL SMARTING WITH MEMORIES OF REAGANERA BOOKS THAT BOMBED INCLUDING THE AUTOBIOGRAPHY OF THE FORMER PRESIDENT PARAMOUNT COMMUNICATIONS INC'S SIMON & SCHUSTER PAID ABOUT 7 MILLION FOR MR REAGAN'S MEMOIRS AND A BOOK OF SPEECHES FIGURING THAT HIS POPULARITY WOULD GUARANTEE HUGE SALES AN AMERICAN LIFE SOLD BETTER THAN MOST PRESIDENTIAL MEMOIRS DESPITE POOR REVIEWS BUT SIMON & SCHUSTER LOST AS MUCH AS 5 MILLION OTHER PUBLISHERS ESTIMATE SIMON & SCHUSTER ACKNOWLEDGES THAT THE BOOK LOST MONEY BUT DECLINES TO COMMENT ON HOW MUCH ANOTHER MONEYLOSER WAS DAVID STOCKMAN'S VITRIOLIC 1985 TELLALL THE TRIUMPH OF POLITICS WHY THE REAGAN REVOLUTION FAILED THOUGH IT SPENT 11 WEEKS ON THE NEW YORK TIMES BESTSELLER LIST TRIUMPH LOST MONEY FOR HARPER & ROW NOW NEWS CORP'S HARPERCOLLINS PUBLISHERS BECAUSE IT PAID AN OVERLY GENEROUS 12 MILLION IN ADVANCE I THINK THE SEXINESS OF BEING OFFERED ALL THESE GOVERNMENT FIGURES HAS BEGUN TO WEAR OFF SAYS STEPHEN RUBIN PRESIDENT AND PUBLISHER OF BERTELSMANN AG'S DOUBLEDAY WHICH HASN'T BID ON ANY BUSHERA TOMES SO FAR TIMES HAVE CHANGED AND WE ALL GET SO MUCH ABOUT THESE PEOPLE FROM NEWSPAPERS MAGAZINES AND TELEVISION A BOOK WON'T WORK UNLESS IT OFFERS SOMETHING YOU CAN'T GET ANYWHERE ELSE ONE PUBLISHER WHO HAS BEEN BIDDING LATELY ADDS THAT MOST AMERICANS WOULD RATHER FORGET THE BUSH ADMINISTRATION THE DEAL STRUCK LAST WEEK FOR FORMER SECRETARY OF STATE JAMES BAKER EXEMPLIFIES THE RETICENCE OF PUBLISHERS TWO OF MR BAKER'S RECENT PREDECESSORS GARNERED MUCH GRANDER DEALS PRESIDENT REAGAN'S FIRST SECRETARY OF STATE ALEXANDER HAIG WAS PAID 1750000 BY TIME WARNER INC'S WARNER BOOKS FOR HIS 1992 MEMOIRS INNER CIRCLES AND THE PUBLISHER IS SAID TO HAVE WRITTEN OFF ABOUT 15 MILLION OF THAT GEORGE SHULTZ WHOSE BOOK WILL HIT STORES NEXT MONTH GOT 2 MILLION FOR A PACKAGE THAT INCLUDED TWO BOOKS AND SOME FILM RIGHTS AND HIS MEMOIR ISN'T EXPECTED TO BE A BIG SELLER IN THE END MR BAKER GOT A DEAL THAT COULD BRING HIM MORE THAN 1 MILLION BUT ONLY IF THE FOREIGN RIGHTS GO FOR LOTS OF MONEY AND THE BOOK IS A HIT HIS PUBLISHER GP PUTNAM KNOWN FOR CAUTIOUS SPENDING IS BELIEVED TO HAVE PAID AN ADVANCE OF ABOUT 600000 FOR NORTH AMERICAN RIGHTS VARIOUS BESTSELLER BONUSES WILL KICK IN ONLY IF THE BOOK LANDS NEAR THE TOP OF MAJOR BESTSELLER LISTS AND STAYS THERE AWHILE PUTNAM IS OWNED BY A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC THE OTHER FINAL BIDDERS IN MR BAKER'S AUCTION RANDOM HOUSE OWNED BY THE NEWHOUSE FAMILY AND WW NORTON & CO WERE BOTH INTERESTED ONLY FOR WHAT THEY REGARDED AS A REASONABLE PRICE SAYS PETER OSNOS ASSISTANT PUBLISHER OF RANDOM HOUSE THE RECORD SHOWS THAT YOU'RE ALWAYS BETTER OFF ON BOOKS OF THIS SORT IF YOU PAY REASONABLE APPROPRIATE MONEY AND PUBLISH THEM WITH ENERGY AND DRIVE IN THE END THERE IS NO PRESTIGE IN A FAILURE THOUGH THE ADVANCES PAID TO FORMER FIRST LADY BARBARA BUSH AND FORMER VICE PRESIDENT QUAYLE ARE GENEROUS MOST PUBLISHERS DON'T CONSIDER THEM UNREASONABLE INDEED MRS BUSH MIGHT HAVE RECEIVED A BIGGER ADVANCE IF SHE HAD WANTED THE PUBLICITY OF A BIG AUCTION INSTEAD THE BOOK WAS OFFERED QUIETLY TO A HANDFUL OF PUBLISHERS AND MRS BUSH ELECTED TO WORK AGAIN WITH LISA DREW THE EDITOR OF MILLIE'S BOOK ABOUT THE FORMER FIRST DOG PUBLISHERS AGREE MRS BUSH PROBABLY WOULDN'T HAVE GOTTEN SO MUCH IF THE DOG BOOK HADN'T BEEN SUCH A HIT SELLING 500000 COPIES IN HARDCOVER ALONE AS FOR DAN QUAYLE'S MEMOIRS INSIDERS SAY HIS REPORTED 1 MILLION DEAL WILL LIKE MR BAKER'S REACH THAT LEVEL ONLY IF IT BECOMES A SUBSTANTIAL BESTSELLER MR QUAYLE PROMISED A BOOK THAT WILL BE A CANDID PERSONAL DESCRIPTION OF WHAT HAPPENED AND WHAT IT FELT LIKE SAYS ERWIN GLIKES PUBLISHER OF MACMILLAN'S FREE PRESS IMPRINT WHO READ THE PROPOSAL THE BOOK WILL BE PUBLISHED BY HARPERCOLLINS WITH SISTER COMPANY ZONDERVAN A RELIGIOUS PUBLISHER THE TWO HAVE PREVIOUSLY COPUBLISHED BESTSELLERS BY OLIVER NORTH AND TOM LANDRY AND ARE WELLPOSITIONED TO REACH MR QUAYLE'S BEDROCK SUPPORTERS IN THE RELIGIOUS RIGHT HISTORIANS SAY THE MOST SUCCESSFUL AND ILLUMINATING POLITICAL MEMOIRS ARE OFTEN WRITTEN BY BIT PLAYERS RATHER THAN THE CENTRAL FIGURES IT DEPENDS ON WHAT PEOPLE REMEMBER AND WHAT THEY'RE WILLING TO SAY MR OSNOS SAYS PEGGY NOONAN A REAGAN SPEECHWRITER WROTE ONE OF THE MOST SUCCESSFUL BOOKS ABOUT THE REAGAN ERA AND SHE WAS SOMEONE MOST PEOPLE KNEW LITTLE ABOUT MS NOONAN'S BOOK WHAT I SAW AT THE REVOLUTION SOLD ABOUT 100000 COPIES HENRY GRAFF A PRESIDENTIAL HISTORIAN AT COLUMBIA UNIVERSITY SAYS ONE OF THE BEST POLITICAL MEMOIRS EVER WRITTEN WAS THAT OF IRWIN HOOVER CHIEF USHER AT THE WHITE HOUSE FOR 42 YEARS A BESTSELLER WHEN PUBLISHED IN 1934 THE BOOK IS STILL A FAVORITE OF HISTORIANS MR GRAFF SAYS PERHAPS THE BIG HIT FROM THE BUSH ERA WILL COME FROM ONE OF THE MINOR PLAYERS STILL IN NEGOTIATIONS SUCH AS WHITE HOUSE SPOKESMAN MARLIN FITZWATER PUBLISHERS HAVE TO TAKE THESE ON A CASEBYCASE BASIS SAYS ROBERT BARNETT THE WASHINGTON LAWYER WHO NEGOTIATED DEALS FOR MESSRS QUAYLE AND BAKER LAST YEAR'S AUTOBIOGRAPHY OF GEN NORMAN SCHWARZKOPF THOUGH NOT STRICTLY A POLITICAL MEMOIR PROVES THE POINT MOST PUBLISHERS THOUGHT BANTAM BOOKS A BERTELSMANN UNIT WOULD LOSE A FORTUNE ON ITS 5 MILLION ADVANCE THE GULF WAR WAS OLD NEWS WHEN THE BOOK CAME OUT BUT READERS RESPONDED TO A HEARTFELT WELLWRITTEN STORY THE GENERAL WAGED AN ALLOUT PUBLICITY CAMPAIGN AND THE BOOK SOLD MORE THAN A MILLION COPIES IN HARDCOVER TWO OTHER BOOKS BY BUSH UNDERLINGS ARE DUE IN BOOKSTORES IN A FEW MONTHS NEITHER FETCHED A FLASHY ADVANCE AND BOTH ARE HIGHLY UNFLATTERING TO THE EXPRESIDENT DUE IN APRIL IS LEAVING TOWN ALIVE CONFESSIONS OF AN ARTS WARRIOR BY JOHN FROHNMAYER FORMER HEAD OF THE NATIONAL ENDOWMENT FOR THE ARTS A MONTH LATER WILL COME WHITE HOUSE DAZE THE UNMAKING OF DOMESTIC POLICY IN THE BUSH YEARS BY CHARLES KOLB FORMERLY DEPUTY ASSISTANT FOR DOMESTIC POLICY THE BIGGEST REMAINING QUESTION IS GEORGE BUSH'S MEMOIRS EVERYBODY IN GOVERNMENT AND PUBLISHING ASSUMES HE WILL WRITE THEM BUT THERE'S BEEN NO WORD ON WHEN A SPOKESMAN FOR THE FORMER PRESIDENT IN HOUSTON SAYS I THINK HE'LL DO IT BUT I WOULDN'T EXPECT ANY ANNOUNCEMENT FOR THE NEXT FEW MONTHS MANY PUBLISHERS HAVE ALREADY EXPRESSED INTEREST DESPITE THE FACT THAT A PREVIOUS BUSH MEMOIR PUBLISHED IN 1987 LOOKING FORWARD SOLD ONLY MODESTLY IN HARDCOVER AND BOMBED IN PAPERBACK DONALD LAMM PUBLISHER OF NORTON SAYS EVEN THOUGH HE CAN'T SEEM TO FIND A VERB IN A SENTENCE GEORGE BUSH IS A MAN OF BREEDING AND EDUCATION AND HE WAS THE PRESIDENT SOMETHING INSIDE ME SAYS THERE IS A SENSE OF UNFINISHED BUSINESS AND A BOOK MIGHT BE A WAY FOR HIM TO FINISH IT 9302080050 930208 LEISURE & ARTS FRESH IDEAS AT PHILHARMONIC BY HEIDI WALESON WHEN DEBORAH BORDA STARTED AS MANAGING DIRECTOR OF THE NEW YORK PHILHARMONIC IN 1991 SHE FOUND AN INSTITUTION WITH ITS BACK TO THE WALL THE SUBSCRIPTION CAMPAIGN HAD MISSED BUDGET BY 15 MILLION AND THE ORCHESTRA ITSELF WAS PERCEIVED AS BORING AND OUT OF TOUCH ZUBIN MEHTA HAD LONG SINCE WORN OUT HIS WELCOME AND KURT MASUR THE NEW MUSIC DIRECTOR WAS STILL A DOURLOOKING EAST GERMAN CIPHER AS FAR AS THE NEW YORK PUBLIC WAS CONCERNED THE PHILHARMONIC HAD SURVIVED BEING BORING FOR YEARS BUT THE DISEASE OF PLUMMETING SALES THAT HAS HIT ORCHESTRAS ALL OVER THE COUNTRY FINALLY MADE IT HERE ALONG WITH MS BORDA AS SHE POINTS OUT HIGHPRESTIGE ORCHESTRAS USED TO SELL 95 OF THEIR TICKETS ON SUBSCRIPTION BEFORE THE SEASON EVEN BEGAN NOW WHEN ONLY 70 OF THE TICKETS SELL ON SUBSCRIPTION SOMETHING SPECIAL HAS TO HAPPEN TO PUT SINGLETICKET BUYERS INTO THE REST OF THOSE SEATS A MAJOR IMAGE RETOOL WAS IN ORDER IN BEST NEWBROOM STYLE MS BORDA SWIFTLY INSTALLED HER OWN PREDOMINANTLY FEMALE MANAGEMENT TEAM DID SOME MARKET RESEARCH AND STARTED CREATING A MORE APPEALING PHILHARMONIC MANY OF HER NEW INITIATIVES ARE BEING LAUNCHED THIS SEASON WHICH CELEBRATES THE ORCHESTRA'S 150TH ANNIVERSARY SOME ARE BASED ON PROGRAMMING THIS YEAR'S MINIFESTIVALS INCLUDE ACTIVITIES BUILT AROUND A NEW WORK BY OLIVER KNUSSEN AND A WEEKLONG TRIBUTE TO LEONARD BERNSTEIN SOME LIKE THE OPENMIKE PHILHARMONIC FORUMS GIVE AUDIENCES ACCESS TO THE MUSIC DIRECTOR AND THE MUSICIANS OTHERS ARE MARKETING PLOYS EXPLICITLY DESIGNED TO ATTRACT NEW AUDIENCES LESSEXPENSIVE CONCERTS WITH ACCESSIBLE REPERTOIRE AND NONSTANDARD FORMATS THE FIRST OF THREE RUSH HOUR CONCERTS FEATURED MR MASUR CONDUCTING KODALY'S HARRY JANOS SUITE AND A REDHOT PICTURES AT AN EXHIBITION IN THE GORCHAKOV ORCHESTRATION THESE INTERMISSIONLESS 75 TO 90MINUTE CONCERTS BEGIN AT 645 TO ATTRACT AN AFTERWORK CROWD AND INDEED THE FIRST ONE WAS ATTENDED BY A LOT OF WELLDRESSED BRIEFCASETOTING YUPPIES WHO GAVE PICTURES IN PARTICULAR AN EXTREMELY ENTHUSIASTIC RECEPTION AND THEN FELL RAVENOUSLY ON THE CHEESE AND CRACKERS PROVIDED AT A POSTCONCERT GETTOGETHER WITH PHILHARMONIC MUSICIANS MR MASUR ALSO CONDUCTED THE FIRST CASUAL SATURDAY CONCERT APPROPRIATELY INFORMAL IN HIS TRADEMARK BOLO TIE HE LED A STIRRING RENDITION OF BRAHMS'S ACADEMIC FESTIVAL OVERTURE AN ELEGANT BEETHOVEN'S FOURTH SYMPHONY AND LISZT'S MEPHISTO WALTZ CASUAL SATURDAYS ALSO INTERMISSIONLESS AND 75 MINUTES LONG BEGIN AT 2 PM AND ARE FOLLOWED BY ROUNDTABLE DISCUSSIONS FEATURING PHILHARMONIC MUSICIANS INSTEAD OF THE FAMILIES THE ORCHESTRA HOPED TO ATTRACT HOWEVER THIS CONCERT BROUGHT IN A NUMBER OF OLDER PEOPLE AND BASED ON THE PAUCITY OF HANDS RAISED WHEN MR MASUR ASKED HOW MANY HAD ATTENDED CONCERTS AT THE HALL BEFORE A GREAT MANY NEWCOMERS MARKET RESEARCH INDICATED THAT NEWCOMERS WERE NERVOUS ABOUT THE REPERTOIRE SO THE PHILHARMONIC IS OFFERING ANOTHER INNOVATION THE TALKING CONDUCTOR THE AMERICAN CONDUCTORS LEONARD SLATKIN GERARD SCHWARZ AND DAVID ZINMAN HAVE BEEN VERY SUCCESSFUL SPEAKING FROM THE PODIUM SOMETHING THAT THE OLD PHILHARMONIC WOULD HAVE CONSIDERED POPULIST PANDERING AS UNLIKELY AS THE METROPOLITAN OPERA ADOPTING SUPERTITLES THINGS ARE DIFFERENT NOW BUT COULD AND WOULD SOMEONE LIKE MR MASUR A NONAMERICAN WITH A SOMETIMES IMPENETRABLE GERMAN ACCENT DO IT WOULDN'T HE FEEL AS SO MANY FOREIGN CONDUCTORS OF AMERICAN ORCHESTRAS DO THAT THIS SORT OF THING WAS NOT HIS JOB MR MASUR IT TURNS OUT HAS SPOKEN TO AUDIENCES BEFORE THE POSTWAR GENERATION IN GERMANY HE EXPLAINS WAS EDUCATED BY TEACHERS WITH NO GROUNDING IN HIGH CULTURE A SITUATION HE SEES PARALLELED IN THE US TODAY WE WERE IN TROUBLE BETWEEN 1955 AND 1965 HE SAYS THE MAIN POINT FOR YOUNG PEOPLE WAS TO EARN MONEY AND EVEN THE TRADITIONAL PLACES HAD NOT ENOUGH AUDIENCE TO GET THEM BACK MR MASUR TALKED AMERICAN AUDIENCES SEEM TO LIKE MR MASUR'S TALKING AS WELL JUDGING BY SURVEY RESPONSES AND LETTERS RECEIVED AFTER THE RUSH HOUR AND CASUAL SATURDAY CONCERTS BEETHOVEN'S FOURTH BEGINS IN MUSICAL DARKNESS HE TOLD THE CASUAL SATURDAY CROWD BUT THEN BEETHOVEN SAYS NO I WANT TO HAVE HOPE I WILL BREAK OUT THEN COMES A SYMPHONY FULL OF JOY THE COMMENTS LEAVENED WITH HUMOR SEEMED IMPASSIONED AND SINCERE WHEN MR MASUR AT A LOSS FOR AN ENGLISH WORD TURNED TO THE ORCHESTRA FOR HELP THE AUDIENCE WAS THRILLED MAGICALLY THE SPECTER OF THE GERMAN OGRE WAS DISPELLED MS BORDA AND MR MASUR ARE BENT ON BRINGING IN THOSE FOLKS WHO IN A BETTER CULTURALLY EDUCATED AGE WOULD HAVE AUTOMATICALLY BECOME PHILHARMONIC SUBSCRIBERS MS BORDA SAYS OUTREACH ISN'T JUST ABOUT REACHING OUT TO MINORITY GROUPS OUTREACH IS ABOUT FINDING A WAY FOR AN INSTITUTION SUCH AS THE PHILHARMONIC TO REALLY INTEGRATE ITSELF INTO THE SOCIAL FABRIC OF THE CITY TO MAKE A DIFFERENCE FOUR OR FIVE YEARS AGO THERE WAS A MOVE BY MANY INSTITUTIONS TO THROW EVERYTHING OUT AND DO MASSIVE MULTICULTURAL CONCERTS THAT'S NOT THE ANSWER NECESSARILY WE HAVE TO BE WHAT WE ARE NEW YORK IS PROBABLY ONE OF THE FEW AMERICAN CITIES WHERE A HUGELY EXPENSIVE SYMPHONY ORCHESTRA ON THE 19THCENTURY MODEL CAN FIND ENOUGH PEOPLE LIKE US TO KEEP IT GOING WITH ONLY MINOR STRUCTURAL ADJUSTMENTS THE FIRST CONCERTS IN BOTH SERIES SOLD OUT THE FINAL CASUAL SATURDAY IS ON APRIL 24 THE RUSH HOUR SERIES FINISHES ON MARCH 17 MS BORDA'S PLAN IS TO USE THE PHILHARMONIC TO RESHAPE AND REDEFINE WHAT ORCHESTRAS WILL LOOK LIKE FOR THE NEXT MILLENIUM BUT IT SEEMS UNLIKELY THAT SHE WILL BE PUSHED TERRIBLY FAR NEITHER THESE NEW CONCERT FORMATS NOR ANYTHING MORE REVOLUTIONARY WILL BE SUPPLANTING THE SUBSCRIPTION SYSTEM ANYTIME SOON IT REMAINS TO BE SEEN WHETHER FRIENDLY MUSICIANS AND EASIER REPERTOIRE WILL BE ENOUGH TO ENABLE THE PHILHARMONIC TO TURN ITS NEW AUDIENCE MEMBERS INTO MUSIC LOVERS OR AT LEAST CONCERTGOERS AND WHETHER THE PROGRAMMING INITIATIVES WILL REALLY ADDRESS THE BIGGER QUESTIONS OF THE ORCHESTRA'S PLACE IN ITS WORLD MS WALESON IS A FREELANCE MUSIC WRITER IN NEW YORK 9302080049 930208 BUSINESS BRIEF KEMPER REALESTATE LOSS RESERVES RISE RESULTING IN LOSSES FOR QUARTER YEAR LONG GROVE ILL KEMPER CORP SAID IT WOULD SET ASIDE 265 MILLION TO COVER WIDENING LOSSES IN ITS 22 BILLION REALESTATE PORTFOLIO RESULTING IN A NET LOSS FOR THE FOURTH QUARTER AND 1992 THE RECOGNITION OF REALESTATE LOSSES WHICH SENT KEMPER STOCK SKIDDING 2375 FRIDAY TO CLOSE AT 32 IN NEW YORK STOCK EXCHANGE TRADING LAGS BEHIND SIMILAR ACTIONS BY OTHER MAJOR REALESTATE LENDERS BUT KEMPER SAID ITS PORTFOLIO OF LOANS AND PROPERTIES IS HEAVILY WEIGHTED TOWARD MARKETS THAT MORE RECENTLY BECAME TROUBLED PARTICULARLY CALIFORNIA AND ILLINOIS THE BIG PROVISION BRINGS THE INSURER'S RESERVE FOR REALESTATE LOSSES TO ABOUT 460 MILLION AT DEC 31 OR ABOUT HALF OF THE APPROXIMATELY 900 MILLION IN ASSETS CLASSIFIED AS NONPERFORMING THAT RATIO IS SIMILAR TO THE RESERVES SET UP BY FIRST CHICAGO CORP AND BANKAMERICA CORP RECENTLY TO DEAL WITH REALESTATE WOES JOHN FITZPATRICK KEMPER'S CHIEF FINANCIAL OFFICER ACKNOWLEDGED FRIDAY THAT IF REALESTATE MARKETS CONTINUE TO DECLINE THE COMPANY COULD BE FORCED TO MAKE BIG ADDITIONS TO THE RESERVE UNLIKE FIRST CHICAGO AND BANKAMERICA KEMPER ISN'T TRYING TO QUICKLY LIQUIDATE A BIG PORTION OF ITS REAL ESTATE THOUGH IT HOPES TO REDUCE ITS EXPOSURE KEMPER SAID IT WOULD ISSUE ITS PROFIT RESULTS LATE THIS WEEK NET INCOME FOR THE FOURTH QUARTER OF 1991 WAS 439 MILLION OR 91 CENTS A SHARE FOR THE FULL YEAR 1991 NET WAS 2045 MILLION OR 425 A SHARE THE AFTERTAX IMPACT OF THE RESERVE WILL BE 180 MILLION OR 370 A SHARE FOR THE FIRST NINE MONTHS OF 1992 NET WAS 241 MILLION OR 50 CENTS A SHARE EVEN ASIDE FROM THE BIG RESERVE KEMPER SAID IT WOULD HAVE HAD A FOURTHQUARTER LOSS BECAUSE OF OPERATING LOSSES FROM REAL ESTATE IT OWNS AND ADOPTION OF AN ACCOUNTING CHANGE ON POSTRETIREMENT BENEFITS THAT WILL REQUIRE A 1992 CHARGE OF 275 MILLION OR 56 CENTS A SHARE KEMPER WOULD HAVE BEEN FORCED TO BOOST ITS RESERVES EARLIER BUT FOR AN UNUSUAL BUSINESS STRATEGY LENDING TO A SINGLE DEVELOPER IN SOME MARKETS ON SEVERAL LARGE PROJECTS AND CROSSCOLLATERALIZING SO THAT LOSSES ON ONE BUILDING COULD BE COVERED BY PROFITS ON ANOTHER THE FOURTHQUARTER DETERIORATION MR FITZPATRICK SAID WAS CAUSED WHEN PROPERTIES KEMPER THOUGHT IT WAS HOLDING AT A BIG POTENTIAL GAIN LOST VALUE AND COULD NO LONGER COVER LOSSES ON OTHER DEVELOPMENTS 9302080048 930208 BUSINESS BRIEF CORTECH INC CONVERSION RIGHTS EXPIRE FOR COMMON STOCKHOLDERS CORTECH INC DENVER SAID THE COMMON STOCK CONVERSION RIGHTS BUILT INTO ITS NOVEMBER INITIAL PUBLIC OFFERING HAVE EXPIRED BECAUSE THE STOCK CLOSED ABOVE 12 OR 50 MORE THAN ITS OFFERING PRICE FOR 40 CONSECUTIVE TRADING DAYS THE CONVERSION RIGHTS PART OF RECENT NOVEL FEATURES BUILT INTO A HANDFUL OF BIOTECHNOLOGY OFFERINGS TO GIVE SKITTISH INVESTORS SOME PRICE SUPPORT CALLED FOR ISSUING ADDITIONAL COMMON STOCK TO SHAREHOLDERS IF CORTECH SHARES DIDN'T HIT THE 12 AVERAGE WITHIN 18 MONTHS THURSDAY'S CLOSE OF 1425 MARKED THE 40TH DAY SAID DAVID CROSSEN PRESIDENT AND CHIEF EXECUTIVE OFFICER CORTECH IS A DENVERBASED BIOPHARMACEUTICAL COMPANY WORKING ON DRUGS TO TREAT INFLAMMATORY DISORDERS 9302080047 930208 HEARD ON THE STREET SLM SEEKS ADDED SPARK WITH RECHARGER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S THE DAY OF RECKONING FOR A NEW PRODUCT FROM SLM INTERNATIONAL TODAY THE NEW YORKBASED TOY MAKER UNVEILS A CONTROVERSIAL RECHARGER FOR DISPOSABLE ALKALINE BATTERIES THE COMPANY SHOCKED THE BATTERY INDUSTRY LATE LAST MONTH WHEN IT SAID IT WOULD INTRODUCE WHAT IT CALLED A BREAKTHROUGH TECHNOLOGY AT THE AMERICAN INTERNATIONAL TOY FAIR IN NEW YORK BEGINNING TODAY CRITICS ARGUE THAT IT'S DANGEROUS TO TRY TO RECHARGE A COMMON ALKALINE BATTERY THEY SAY OTHERS HAVE TRIED AND FAILED TO SELL SIMILAR PRODUCTS THE DAY OF SLM'S ANNOUNCEMENT ITS STOCK JUMPED NEARLY 15 IN INTRADAY NASDAQ TRADING BEFORE SETTLING BACK TO 23 7/8 FRIDAY OR ABOUT 2 ABOVE THE PREANNOUNCEMENT LEVEL AT THE SAME TIME THE PROSPECT OF RECHARGING DISPOSABLE BATTERIES TOOK A BITE OUT OF THE STOCK PRICE OF DURACELL INTERNATIONAL THE WORLD'S LARGEST MAKER OF SINGLEUSE ALKALINE BATTERIES DURACELL SHARES TUMBLED AS MUCH AS 12 THE DAY OF THE ANNOUNCEMENT BEFORE EDGING BACK TO 32 3/8 FRIDAY STILL OFF 6 SINCE THE NEWS DURACELL INSISTS THAT THE TOY MAKER'S PRODUCT POSES A RISK TO CONSUMERS IT FURTHER CLAIMS THAT RECHARGING DISPOSABLE ALKALINE BATTERIES MIGHT CAUSE THEM TO EXPLODE WE MAKE BATTERIES WE KNOW WHAT GOES INTO THEM SAYS DURACELL SPOKESMAN JIM DONAHUE WE SAY IT IS UNSAFE UNWISE AND UNECONOMICAL BECAUSE ALKALINE BATTERIES AREN'T DESIGNED TO BE RECHARGED PHOOEY SAYS SLM IT COUNTERS THAT ITS BUDDY L SUPER CHARGER HAS PROVED ENTIRELY SAFE IN EXTENSIVE TESTING WHICH IS STILL UNDER WAY A PATENT IS PENDING FOR THE PRODUCT WHICH THE COMPANY SAYS CAN BE USED ON RECHARGEABLE BATTERIES AS WELL AS THE THROWAWAY KIND THE PRODUCT WILL BE MARKETED THROUGH LENGTHY TELEVISION COMMERCIALS IN JUNE AND AT RETAILERS IN SEPTEMBER TOY FAIR VISITORS WILL GET A FIRST LOOK THIS WEEK WHATEVER I SAY AND WHATEVER ANYONE ELSE SAYS IS IRRELEVANT SAYS EARL TAKEFMAN SLM'S COCHIEF EXECUTIVE OFFICER BUT TO TELL ME IT DOESN'T WORK WHEN I KNOW IT WORKS IS QUITE ABSURD TO ME THE PRODUCT WILL SPEAK FOR ITSELF FOR ALL THE HOT AIR BEING BLOWN BY BOTH SIDES SLM SEEMS TO BE IN A NOLOSE POSITION THE COMPANY SAYS ITS FUTURE CERTAINLY DOESN'T REST ON THE SUCCESS OF THE RECHARGER EVEN IF THE PRODUCT LIVES UP TO ITS BILLING MR TAKEFMAN EMPHASIZES THAT SLM IS PRIMARILY A DESIGNER MAKER AND MARKETER OF TOYS AND SPORTING GOODS WE'RE NOT A BATTERYCHARGER COMPANY WE'RE A TOY COMPANY HE SAYS WE'RE NOT GOING TO SINK OR SWIM ON THIS PRODUCT TOY ANALYSTS AGREE THEY GIVE SLM HIGH MARKS FOR ITS MAIN BUSINESSES AND NOTE THAT THE COMPANY'S EARNINGS ARE GROWING STEADILY ON THURSDAY SLM REPORTED FOURTHQUARTER PROFIT OF 38 CENTS A SHARE COMPARED WITH 22 CENTS A YEAR EARLIER LAURIE LIVELY SMITH A TOY ANALYST AT SEIDLER AMDEC SECURITIES IN LOS ANGELES ESTIMATES THAT SLM WILL EARN 185 A SHARE THIS YEAR COMPARED WITH 145 IN 1992 THE STOCK IS CHEAP AT THAT LEVEL OF 13 TIMES ESTIMATED EARNINGS SHE SAYS MS SMITH SAYS SLM IS THE LEADING MANUFACTURER OF HOCKEY APPAREL WHICH IS A FASTGROWING MARKET IN ADDITION THE MAKER OF BUDDY L BRAND TOYS OCCUPIES STRONG POSITIONS IN STABLE AREAS SUCH AS PLASTIC SLEDS FOR WINTER POOLS AND SANDBOXES FOR SUMMER MS SMITH ASSERTS THAT SLM DOESN'T HAVE A LOT RIDING ON ITS BATTERY RECHARGER BECAUSE ITS ONLY INVESTMENT IS 200000 TO LICENSE THE PRODUCT FROM ITS INVENTOR AN ANONYMOUS UNIVERSITY PROFESSOR THE DOWNSIDE RISK IS LIMITED SHE SAYS BUT THE UPSIDE COULD BE SUBSTANTIAL IT CAN'T HURT THEM VERY MUCH EVEN IF IT'S A FLOP SLM'S MR TAKEFMAN SAYS HE NEVER MEANT FOR HIS RECHARGER TO CAUSE SUCH AN UPROAR CERTAINLY MY INTENTION WAS NOT TO HURT DURACELL OR EVEREADY A UNIT OF RALSTON PURINA HE SAYS MY INTENTION WAS JUST THAT I SAW AN OPPORTUNITY WITH A PRODUCT BUT WILL DURACELL REALLY SUFFER IF THE RECHARGER DOES WHAT SLM SAYS IT DOES NOT LIKELY MANY ANALYSTS SAY WITH CONSUMER PRODUCTS BECOMING INCREASINGLY PORTABLE DEMAND FOR BATTERIES CONTINUES TO IMPROVE AS A MARKET LEADER DURACELL IS POSITIONED TO BENEFIT FROM WIDENING DEMAND PARTICULARLY OVERSEAS MOREOVER ANALYSTS SAY THE COMPANY HAS WIDE LATITUDE IN PRICING BECAUSE IT HAS JUST ONE GIANT COMPETITOR DURACELL AND EVEREADY ACCOUNT FOR 70 TO 80 OF MARKET SHARE WORLDWIDE THE RECHARGER ISSUE ADDS A LITTLE CLOUD OVER A VERY POSITIVE STORY SAYS BETH ANN LOEWY AN ANALYST AT UBS SECURITIES DURACELL WILL BE FINE BUT IN THE NEAR TERM THE STOCK MAY BE INVOLVED IN TURMOIL OVER THE RECHARGER IT'S CURRENTLY TRADING AT AROUND 22 TIMES EARNINGS ESTIMATES FOR THE FISCAL YEAR THROUGH JUNE ANALYSTS ALSO NOTE THAT CONSUMERS HAVE YET TO ACCEPT THE NOTION OF RECHARGEABLE BATTERIES THOUGH RECHARGEABLE NICKEL CADMIUM BATTERIES HAVE BEEN AROUND FOR A LONG TIME THE CHEAPER DISPOSABLE ALKALINE BATTERIES STILL DOMINATE SOME 80 OF ALL BATTERIES SOLD IN THE US ARE ALKALINE RECHARGEABLE BATTERIES HAVEN'T REALLY CHANGED CONSUMPTION HABITS IN ALL THE YEARS THEY'VE BEEN AROUND SAYS PETER BARRY DIRECTOR OF RESEARCH AT ROTHSCHILD PEOPLE ARE NOT DISCIPLINED TO MONITOR THE STATE OF CHARGE AND GET THE BATTERIES IN THE CHARGER AND WAIT FOR THE RECHARGE NONETHELESS DURACELL ISN'T IGNORING THE GROWTH POTENTIAL OF RECHARGEABLES LAST YEAR THE COMPANY BEGAN DEVELOPING A NICKEL METAL HYDRIDE RECHARGEABLE BATTERY WITH TOSHIBA BATTERY CO AND BARTA BATTERIE AG FOR USE IN HIGHPOWERED ELECTRONIC DEVICES SUCH AS CELLULAR PHONES CAMCORDERS AND NOTEBOOK COMPUTERS DURACELL SAYS THE NEW BATTERY WHICH IS EXPECTED TO BE LAUNCHED LATER THIS YEAR LASTS LONGER THAN THE NICKEL CADMIUM VARIETY AND IS BETTER FOR THE ENVIRONMENT THE COMPANY ASSERTS THAT NICKEL METAL HYDRIDE MAY SUPPLANT NICKEL CADMIUM OVER THE LONG TERM LYNNE HYMAN AN ANALYST AT FIRST BOSTON WHO PICKED DURACELL AS THE BROKERAGE FIRM'S FEATURED STOCK LAST WEEK IS OPTIMISTIC ABOUT THE OUTLOOK FOR DURACELL'S RECHARGEABLE PRODUCT SHE SAYS DURACELL'S NICKEL METAL HYDRIDE BATTERIES STAND A GOOD CHANCE OF REPLACING THE NICKEL CADMIUM VARIETY BECAUSE OF THE COMPANY'S WIDE DISTRIBUTION NETWORK WE BELIEVE THAT DURACELL HAS THE BEST COMBINATION OF TECHNOLOGICAL AND DISTRIBUTION STRENGTHS SAYS MS HYMAN WHO IS UNCONCERNED BY THE TOY COMPANY'S PRODUCT ADDING ANOTHER WRINKLE TO THE BATTERY INDUSTRY'S OUTLOOK IS THE PROSPECT OF A RECHARGEABLE ALKALINE BATTERY LAST WEEK RAYOVAC CORP SAID IT LICENSED TECHNOLOGY FROM TORONTOBASED BATTERY TECHNOLOGIES INC TO MANUFACTURE A RECHARGEABLE ALKALINE BATTERY BATTERY TECHNOLOGIES SAYS THE NEW PRODUCT IS EXPECTED TO BE AVAILABLE IN SEVERAL COUNTRIES LATER THIS YEAR DURACELL SAYS THAT THE EFFORTS TO PRODUCE A RECHARGEABLE ALKALINE BATTERY UNDERSCORE THE INADVISABILITY OF RECHARGING STANDARD ALKALINES IT LENDS SOME CREDENCE TO THE BELIEF THAT RECHARGING ORDINARY ALKALINE BATTERIES IS NOT A SMART THING TO DO SAYS DURACELL'S MR DONAHUE OTHERS HAVE TRIED TO INTRODUCE ALKALINE RECHARGERS SUCH AS SLM'S AND MOST HAVE BEEN RELEGATED TO LATENIGHT TELEVISION 9302080046 930208 ADVERTISING AD INDUSTRY REAPS BENEFITS OF A RECOVERY BY KEVIN GOLDMAN THE REVIEWS AREN'T YET IN FOR THE SIXHOUR MINISERIES QUEEN WHICH BEGINS ON CBS SUNDAY BUT THE NETWORK IS ALREADY CROWING ABOUT ONE IMPRESSIVE ACHIEVEMENT THE ALEX HALEY MINISERIES SOLD OUT THREE MONTHS AGO TO A LITANY OF BIGNAME SPONSORS INCLUDING CHRYSLER MCDONALD'S AND KMART THE UNUSUAL SELLOUT SO LONG BEFORE THE AIR DATE IS ONE OF A GROWING NUMBER OF SIGNS THAT THE ADVERTISING INDUSTRY IS ON THE BRINK OF A REAL REBOUND THE AD BUSINESS HAS ENDURED THREE LONG YEARS UNDER FINANCIAL SIEGE AS THE ECONOMY STUMBLED INTO RECESSION AND EVEN THE MIGHTIEST SPONSORS QUESTIONED THE REAL VALUE OF THEIR BUDGETS BUT NOW MADISON AVENUE IS POISED TO REAP THE BENEFITS OF AN IMPROVING ECONOMY AND WHAT SEEMS TO BE A PERVASIVE AND PERSISTENT SENSE OF NEW HOPE IN THE NEW RESIDENTS OF THE WHITE HOUSE ENCOURAGING SIGNS ABOUND THE MAJOR TELEVISION NETWORKS' SOCALLED SCATTER MARKET IS SEEING TIGHT SPACE AND ROBUST PRICE INCREASES SOME SPONSORS ARE SPENDING BIG SUMS TO INTRODUCE NEW PRODUCTS RATHER THAN SIMPLY SIPHONING OFF DOLLARS FROM THEIR EXISTING BUDGETS ONE BELLWETHER PROCTER & GAMBLE HAS DECIDED TO STICK WITH 15 MILLION IN PLANNED AD SPENDING FOR THE SECOND QUARTER RATHER THAN CANCEL COMMITMENTS AS IT DID A YEAR AGO WALL STREET HAS TAKEN NOTICE AND ADVERTISING STOCKS ARE HANDILY OUTPACING THE OVERALL MARKET THE S&P 500 IS UP 31 SINCE JAN 1 YET SHARES OF OMNICOM GROUP ARE UP 68 AND FOOTE CONE & BELDING COMMUNICATIONS STOCK IS UP AN IMPRESSIVE 91 INTERPUBLIC GROUP GENERALLY REGARDED AS THE BESTMANAGED AGENCY PARENT IS UP 18 SINCE THE YEAR BEGAN IN NEW YORK STOCK EXCHANGE TRADING FRIDAY OMNICOM SHARES CLOSED AT 4325 FOOTE CONE CLOSED AT 33125 AND INTERPUBLIC CLOSED AT 3475 THE ADVERTISING BUSINESS HAS BEEN ENJOYING A MODEST RECOVERY AND IT'S ABOUT TO GIVE WAY TO AN EXUBERANT RECOVERY SAYS ALAN GOTTESMAN AN ANALYST WITH PAINEWEBBER SUCH INDICATORS ARE CONTRIBUTING TO CAREFUL OPTIMISM IN THE SHELLSHOCKED RANKS OF MADISON AVENUE AND BROADCAST ROW ALL IN ALL THERE ARE SOME HOPEFUL SIGNS OUT THERE SAYS A RESERVED IRWIN GOTTLIEB A SENIOR VICE PRESIDENT AT AD AGENCY D'ARCY MASIUS BENTON & BOWLES AMONG THE NETWORKS THE NATIONAL SCATTER MARKET IS THE STRONGEST IT HAS BEEN SINCE 1990 EACH SUMMER CBS ABC NBC AND FOX TOGETHER SELL SEVERAL BILLION DOLLARS IN UPFRONT ADVERTISING ORDERS FOR THE COMING YEAR THE UNSOLD TIME LEFT OVER IS PEDDLED THROUGHOUT THE YEAR IN QUICK PURCHASES IN THE SCATTER MARKET WHICH CAN BE A MORE REVEALING AND UPTOTHEMINUTE READING ON HOW THE BUSINESS IS FARING ABC GAMBLED LAST SUMMER BY HOLDING BACK A FULL 35 OF ALL OF ITS AD TIME TO BE SOLD LATER IN THE SCATTER MARKET BETTING THAT PRICES WOULD GO UP AS THE YEAR WORE ON THE CAPITAL CITIES/ABC PROPERTY IS NOW COMMANDING RATES THAT ARE ABOUT 10 HIGHER THAN THE RATES IN THE UPFRONT MARKET LAST SUMMER WE'RE SEEING A RECOVERY AKIN TO THE NATIONAL ECONOMY SAYS MARVIN GOLDSMITH PRESIDENT OF SALES AND MARKETING AT ABC WHICH IS RANKED NO 2 IN HOUSEHOLD RATINGS IN PRIME TIME CBS HELD BACK ONLY 15 OF ITS TIME FOR SCATTER SALES AND THE NO 1 NETWORK IS ENJOYING PRICE INCREASES OF AS MUCH AS 15 OVER THE UPFRONT RATES IT HAD CHARGED SAYS JOSEPH ABRUZZESE CBS'S SENIOR VICE PRESIDENT OF NETWORK SALES CBS ALSO IS VIRTUALLY SOLD OUT FOR ITS COLLEGE BASKETBALL CHAMPIONSHIP GAMES AND HAS ALREADY SOLD 85 OF ALL AD TIME FOR ITS PRICY GOLF COVERAGE WHICH APPEALS TO THE CHIEF EXECUTIVE SET GENERAL ELECTRIC'S NBC AND NEWS CORP'S FOX ARE GETTING SOMEWHAT MILDER PRICE INCREASES IN THE SCATTER MARKET INDUSTRY EXECUTIVES SAY ALTHOUGH SOME AD PEOPLE QUESTION THE NBC ASSERTION GIVEN ITS CURRENT RATINGS PROBLEMS THE STRONGER OUTLOOK FOR SHORTTERM AD BUYS SHOWS THAT SOME ADVERTISING GIANTS ARE FINALLY LOOSENING THEIR PURSE STRINGS HOT COMPETITION AMONG RIVALS IN SOME MARKETS PARTICULARLY LONGDISTANCE PHONE SERVICE AND CREDIT CARDS AND NEW PRODUCT ENTRIES IN OTHER CATEGORIES ARE FUELING THE SPENDING BLITZ MCI COMMUNICATIONS SPRINT AND AMERICAN TELEPHONE & TELEGRAPH HAVE PLENTY TO YAK ABOUT IN THEIR RIVALRY FOR AMERICA'S EAR ALTHOUGH THE TRIO COULDN'T BE REACHED TO COMMENT NETWORK EXECUTIVES SAY ALL THREE PLAN DOUBLEDIGIT INCREASES IN THEIR TELEVISION AD SPENDING THIS YEAR THAT MAKES FOR A WINDFALL OF PERHAPS 30 MILLION TO 40 MILLION GIVEN THAT THE THREE COMPANIES TOGETHER SPENT ALMOST 230 MILLION ON ADVERTISING IN JUST THE FIRST NINE MONTHS OF LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS NETWORK BOOKMAKERS ARE ALSO SALIVATING OVER THE PROSPECT OF ALLOUT AD WAR AMONG CREDIT CARDS GENERAL MOTORS IS EXPECTED TO SPEND OVER 50 MILLION TO ADVERTISE AND PROMOTE ITS NEW GOLD MASTERCARD FORD MOTOR MAY ANNOUNCE PERHAPS AS EARLY AS TODAY THAT IT WILL ENTER THE FRAY WITH A CREDIT CARD OF ITS OWN THE TWO NEWCOMERS COULD PUSH AT&T ALL THE HARDER IN PROMOTING ITS UNIVERSAL CARD IT'S A FREEFORALL OUT THERE AND WE'RE BOUND TO BENEFIT SAYS ONE GLEEFUL NETWORK SALES EXECUTIVE ANOTHER HEALTHY SIGN IS THAT SOME NEW PRODUCTS ARE GETTING SUPPORT FROM NEW DOLLARS PEPSICO FOR INSTANCE PLANS TO SPEND MILLIONS OF EXTRA BUCKS TO SUPPORT THE LAUNCH OF CRYSTAL PEPSI SAYS A PERSON CLOSE TO THE DECISION RATHER THAN PENALIZING THE AD BUDGETS OF ITS REGULAR AND DIET BRANDS AND REEBOK INTERNATIONAL LTD IS BOOSTING ITS SPENDING TO FUND A DUAL AD CAMPAIGN ONE FEATURES BASKETBALL STAR SHAQUILLE O'NEAL AND HIS NEW LINE OF HOOPS SHOES AND ANOTHER IS A BRANDIMAGE CAMPAIGN TITLED PLANET REEBOK NOW AD EXECUTIVES ARE WAITING TO SEE WHETHER SUCH INCREASES EXTEND TO THE REST OF THE MARKET BEYOND JUST THOSE COMPANIES THAT FACE TOUGH COMPETITION OR HAVE NEW PRODUCTS TO SELL THE OVERALL EXTENT OF THE RECOVERY IS HARD TO MEASURE SAYS MR GOTTLIEB OF DMB&B AND MANY COMPANIES ARE WAITING TO GET A BETTER READ ON THEIR PROFIT OUTLOOK FOR THE COMING YEAR EVEN PRESIDENT CLINTON WARNED IN HIS RADIO ADDRESS OVER THE WEEKEND THAT THE ECONOMIC SITUATION HAS SOME GREATER PROBLEMS THAN WE THOUGHT A CLINTON CALL FOR HIGHER TAXES COULD HURT CONSUMER CONFIDENCE THE WHOLE THING COULD FALL APART AS QUICKLY AS IT CAME TOGETHER FRETS F STONE ROBERTS CHIEF OPERATING OFFICER OF LINTASNEW YORK THEN HE ADDS BUT I DON'T THINK SO THERE IS FINALLY SOME ROBUST REASON TO HAVE HOPE ON MADISON AVENUE PORSCHE AG'S PORSCHE CARS NORTH AMERICA NARROWED THE SEARCH FOR AN AGENCY FOR ITS ESTIMATED 10 MILLION ACCOUNT THE FOUR FINALISTS ARE THE RICHARDS GROUP DALLAS STEIN ROBAIRE HELM LOS ANGELES AND SAN FRANCISCO SHOPS GOLDBERG MOSER O'NEILL AND OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN GOODBY'S APPEARANCE ON THE LIST OF FINALISTS IS SURPRISING BECAUSE THE SHOP ALREADY HANDLES THE BIG ACCOUNT OF ANOTHER CAR MAKER AMERICAN ISUZU MOTORS BUT COLIN PROBERT GOODBY BERLIN PRESIDENT SAID THE AGENCY IS PURSUING PORSCHE WITH ISUZU'S BLESSING IT'S OBVIOUS THAT ISUZU AND PORSCHE DON'T COMPETE ON ANY LEVEL HE SAID ISUZU MOTORS LTD OF JAPAN RECENTLY ANNOUNCED PLANS TO STOP DEVELOPMENT OF PASSENGER CARS AND COULD LEAVE THAT MARKET AS EARLY AS NEXT YEAR AN ISUZU SPOKESMAN DECLINED TO COMMENT STEIN ROBAIRE HELM HOLDS A FORMIDABLE ADVANTAGE ITS CHIEF EXECUTIVE GREG HELM WORKED ON THE PORSCHE ACCOUNT WHEN IT WAS AT CHIAT/DAY IN THE MID1980S THE RICHARDS GROUP WAS A FINALIST LAST YEAR IN THE MERCEDESBENZ PITCH AND GOLDBERG MOSER WAS AN EARLY CONTENDER IN THE PITCH FOR GENERAL MOTORS' OLDSMOBILE THE ACCOUNT WAS PREVIOUSLY HANDLED BY WPP GROUP'S FALLON MCELLIGOTT LIFE MAGAZINE IS EXPECTED TO ANNOUNCE TODAY IT WILL CUT AD RATES AND REDUCE ITS CIRCULATION RATE BASE AND SHRINK THE DIMENSIONS OF THE MAGAZINE IN AN EFFORT TO STAY ALIVE AND WELL THE TIME WARNER MAGAZINE'S PUBLISHER NORA MCANIFF SAID THE CHANGES ARE AIMED AT DRIVING UP AD PAGES WITH CHEAPER RATES AND LOWERING COSTS WITH THE MAY ISSUE LIFE'S AD RATES WILL FALL 35 A FOURCOLOR FULLPAGE AD WILL DROP TO 49500 FROM 76605 WITH THE JULY ISSUE LIFE'S RATE BASE GUARANTEED TO ADVERTISERS WILL DROP 12 TO 15 MILLION FROM 17 MILLION ALSO WITH THE JULY ISSUE LIFE'S SIZE WILL SHRINK BY A COUPLE INCHES IN LENGTH AND WIDTH TO THE SIZE OF SIBLING FORTUNE MAGAZINE ONLY MONTHS AGO LIFE'S FUTURE WAS IN DOUBT AFTER AT LEAST THREE YEARS OF AD PAGE DECLINES LIFE'S TOTAL CIRCULATION DROPPED 5 TO 18 MILLION IN THE FIRST HALF OF 1992 AD PAGES WERE DOWN 25 IN THE FIRST QUARTER THIS YEAR AS ADVERTISERS HELD BACK BECAUSE OF UNCERTAINTY OVER THE TITLE'S FUTURE LIFE MANAGING EDITOR DANIEL OKRENT SAID THE MAGAZINE WILL MAKE SOME SUBTLE EDITORIAL CHANGES TOO WE WON'T BE CHASING THE NEWS AS MUCH SAID MR OKRENT IT WILL GO MORE PHOTOGRAPHIC THAN IT HAS BEEN AND LIGHTEN THE TONE A BIT LIFE SHOULD AMAZE AND AMUSE CLUTTER STUDY CLUTTER DURING PRIMETIME NETWORK PROGRAMS DECLINED 42 DURING 1992 ACCORDING TO A STUDY RELEASED TODAY BY THE NETWORK TELEVISION ASSOCIATION AVERAGE PERHOUR CLUTTER DECLINED FROM 13 MINUTES AND EIGHT SECONDS IN 1991 TO 12 MINUTES AND 35 SECONDS IN 1992 THE LEVEL IT WAS AT IN 1990 NETWORK COMMERCIALS DURING PRIMETIME DECLINED AN AVERAGE OF 35 LOCAL COMMERCIALS PROGRAM PROMOTIONS AND OTHER NONPROGRAMING DECLINED 51 THE NTA A TRADE GROUP REPRESENTING THE ABC CBS AND NBC NETWORKS COMMISSIONED THE WEEKLONG STUDY FROM ARBITRON'S MEDIAWATCH GROUP IN NOVEMBER